diff --git "a/India/14.Sun Pharmaceutical_$52.18 B_Health Care/2020/results.txt" "b/India/14.Sun Pharmaceutical_$52.18 B_Health Care/2020/results.txt"
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@@ -0,0 +1,241490 @@
+CHART 2
+Net Current Assets
+26,843
+15,960 21,476
+10,354 14,625
+6,565 18,595
+33,995 35,485
+1,036 1,036 1,036 1,036
+69,414 77,254 93,798 121,322
+23,340 45,473 54,269 75,763 86,505 167,059 209,998
+15,328 25,214 29,295 45,145 49,827 89,815 116,268
+31,664 26,557 22,129 24,116 27,860 27,163 13,086
+28,542 58,622 76,749 86,618 126,969 127,689 176,169
+1,036
+148,862
+2,071 2,071 2,407
+183,178 253,826 311,636
+Stock Information
+Number of Shares (million)
+193
+207
+207
+207
+1,036
+1,036
+1,036
+2,071
+2,543
+2,071
+Investments
+Net Block
+8%
+6%
+6%
+6%
+6%
+7%
+7%
+8%
+Financial Position
+Equity Share Capital
+967
+1,036
+Reserve and Surplus
+26,747
+48,879
+Gross Block
+14,252
+9,514
+9%
+2,407
+3.5
+Share-Basic (In *)*
+Reported Earning per
+38.9
+71.8
+87.8
+65.2
+17.5
+25.7
+28.8
+15.2
+18.9
+19.6
+Share-Diluted (In *)*
+* During FY05, the Company issued bonus shares in the ratio of one equity share of 5/- for every share held.
+* During FY11, each equity share of 5/- was split into five equity shares of 1/- each.
+During FY14, the Company issued bonus shares in the ratio of one equity share of 1/- for every share held.
+* During FY15, the Company's equity shares have increased to 2,406 million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the Company,
+wherein 0.80 equity share of *1 each of the Company have been allotted to the shareholders of RLL for every 1.00 share of 5 each held by them.
+3
+19.6
+Adjusted Earning per Share
+18.9
+28.8
+6.4
+7.8
+5.6
+7.5
+11.0
+12.4
+13.1
+18.9
+19.6
+(post exceptional items) (In *)*
+Reported Earnings per
+41.7
+74.7
+87.8
+65.2
+17.5
+25.7
+15.2
+SUN
+13%
+783
+STATUTORY REPORTS
+06 - 84
+TEN YEAR FINANCIAL HIGHLIGHTS
+FINANCIAL STATEMENTS
+85 - 206
+CONSOLIDATED
+(in million)
+Particular
+FY07
+FY08
+FY09
+FY10
+FY11
+FY12
+FY13
+FY14
+FY15
+FY16
+Operating Performance
+02 - 05
+Income from Operations
+CORPORATE OVERVIEW
+47,159
+93,798
+(in million)
+Reserve & Surplus
+121,322
+148,862
+183,178
+253,826
+8,402
+311,636
+(in million)
+13,470
+(in million)
+Profit After Tax
+26,567
+29,831
+31,415
+45,394
+(in million)
+c) % of Turnover
+22,373
+Total Income
+134
+222
+159
+236
+362
+427
+556
+b) Revenue
+2,440
+2,725
+3,098
+2,083
+3,077
+4,088
+6,616
+9,862
+7,042 10,418 19,550 23,025
+1,178
+18,373 22,242
+347
+34,606 43,751
+a) Capital
+3,313
+23,745
+35,017 44,808
+38,086
+42,123
+57,279
+60,827
+80,195
+84,910
+112,999 160,804 273,920 282,697
+116,880 166,326 279,397 288,867
+Profit for the year (after minority
+8,402
+15,509
+13,470 18,161 26,567
+29,831 31,415 45,394 47,159
+interest)
+R&D Expenditure
+2,787
+2,859
+3,320
+2,242
+4,449
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+3-6%
+249
+11.9%
+345-375
+7-10%
+135
+5.2%
+150-180
+1-4%
+1,069
+6.2%
+1,400-1,430
+4-7%
+Spending and Growth to 2020
+The developed markets will contribute 63% of the spending, driven
+by the US. Original brands will represent 52% of spending and 85%
+of global spending will be for medicines to treat non-communicable
+diseases. These distributions of costs belie the very different
+perspective on a volume basis where lower-cost/higher-volume
+medicines dominate the overall use of medicines.
+CHART 3
+Medicine Spending in 2020 by geography
+and product type¹
+870-900
+63%
+4.8%
+2020
+6
+-
+TABLE 1
+Region Spending¹
+Regions
+Developed Markets
+Pharmerging Markets
+Other Markets
+Global Pharmaceutical Market
+CORPORATE OVERVIEW
+-
+02-05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+US$ billion
+2015
+684
+2011-2015 CAGR
+2016-2020 CAGR
+# Includes China, Brazil, Russia, India, Venezuela, Poland, Argentina, Turkey, Mexico, Vietnam, South Africa, Thailand, Indonesia, Romania, Egypt, Pakistan,
+Ukraine, Algeria, Colombia, Nigeria, Saudi Arabia and Russia
+Contribution of
+Country-wise Spending
+Specialty and traditional medicines
+A rising proportion of medicines are specialty medicines.
+In 2020, 28% of global spending will be for specialty
+medicines, up from 26% in 2015. Spending will be more
+focused on specialty medicines in developed markets,
+accounting for 36% of spending in 2020, compared to only
+12% in pharmerging markets.
+The use of traditional medicines (non specialty) account
+for the majority of medicine spending globally, but there
+are very different patterns of usage and spending in
+developed markets compared to pharmerging markets. In
+developed markets, some of the major classes of medicines
+will experience reduced spending due to patent expiries,
+whereas differences in disease morbidity and the adoption
+of innovation drive the remainder of differences.
+CHART 4
+Speciality share of
+-
+spending 2020¹
+28%
+Global Spending
+US$ 1.4 trillion
+36%
+12%
+Developed Markets
+US$ 850-880 billion
+Pharmerging Markets
+US$ 360-390 billion
+8
+-
+API Plant
+Blender Machine
+developed markets to
+global pharmaceutical
+spending
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+SUN
+Product-wise Spending
+O
+41% US
+13% EU5
+6% Japan
+3%
+Other major developed countries
+11% China
+52% Original brands
+21% Non-original brands
+14% Unbranded
+13% OTC
+8%
+Other pharmerging countries
+6%
+Brazil/Russia/India
+12% Rest of the World
+PHARMA
+** Other Markets includes Rest of World US$ 21 Bn and exchange rate effects US$ 26Bn
+* Generic in developed markets includes Generics US$ 24 Bn, Non-original Brands US$ 23 Bn, OTC US$ 10 Bn
+Loss of
+exclusivity
+Developed Markets
+We continue to invest significant time and resources in ensuring
+that we remain committed to 24x7 cGMP compliance. Over
+the past year, our cGMP capabilities have been strengthened
+significantly. Talent with long-standing global expertise has
+enhanced our abilities in this pertinent area. We are also
+targeting appropriate technology-based solutions to facilitate
+CGMP compliance, coupled with an increased focus on
+requisite manpower training.
+Transformation
+It is obvious that to generate long-term sustainable value for
+shareholders, businesses will need to continuously evolve and
+transform themselves to build a strong foundation for future
+growth. The key is to improve the underlying fundamentals so
+that we can aim for delivering much more from our current levels.
+At Sun Pharma, we have embarked on a transformational journey
+to make Sun Pharma a Better, Stronger and Faster Company.
+This should help us drive a stable and consistent growth in cash
+flows, which is a key objective of our corporate philosophy.
+Better
+It is imperative and expected of us that, as an organisation, we
+consistently deliver Better quality products. We must become
+Better by improving the quality of what we do in each of our
+businesses and functions. Sustained efforts are being made for
+improving manufacturing and sales processes. Getting it right the
+first time is the key objective and it can make a difference between
+success and failure. For this, care needs to be taken to ensure that
+right from product development to each of our processes, quality
+standards and compliance principles are adhered to.
+Stronger
+Our customers expect us to deliver quality products at highly
+competitive prices. To achieve this, focus on becoming Stronger
+through productivity enhancement becomes a key driver.
+Productivity improvement mandates "doing more with less"
+and reducing costs and wastages. Cost leadership has been a
+critical determinant of our past success and will continue to do
+so in future as well. Sales productivity, throughput and yield will
+be the key contributors to this overall productivity improvement.
+Faster
+A better and stronger organisation can do well only if it is Fast
+in responding to customer requirements. Time-to-market and
+minimum cycle times are extremely critical in our business. We
+have to ensure that increasing size does not limit our agility and
+flexibility. Our ability to make our products available on time
+consistently to our customers determines our service standards
+to customers. A responsive organisation requires seamless
+cross-functional collaboration across all the markets which we
+service, in order to serve the customer. This helps us in devising
+the most optimum response to business opportunities.
+Overall Outlook
+The transformation to a Better, Stronger and Faster company
+will involve crossing critical milestones over the next few years.
+As we transition, we have guided for our overall consolidated
+revenues to grow by 8-10% for FY17.
+Persistently working for patients across the world, we are
+targeting to increase the share of complex generics and
+specialty products to our overall business in the coming years.
+This objective will be driven by a combination of our own
+efforts coupled with relevant inorganic initiatives as well as
+external partnerships. Our specialty strategy coupled with the
+benefits from the Ranbaxy merger and the targeted productivity
+improvements, should favourably impact our profitability in the
+long-term. Our capable and committed employees will be the
+key drivers of this profitability.
+As a shareholder, you have continuously supported our
+endeavours over the past many years. As always, we are
+grateful to you for this confidence.
+Warm regards,
+Dilip Shanghvi
+Managing Director
+Sun Pharmaceutical Industries Ltd.
+We are gradually progressing on the remediation process
+at the erstwhile Ranbaxy facilities, which were found to be
+non-compliant in the past. While significant efforts to make
+these facilities compliant are on, this will be a time-consuming
+process. We expect to complete the remediation steps in at
+least one of these facilities in FY17.
+5
+Adherence to the stringent cGMP requirements of global
+regulators is a non-compromising objective for us. Compliance
+to these standards has become a key determinant of future
+success for the pharmaceutical industry. Our Halol facility, which
+was impacted by cGMP deviations in FY15, underwent a very
+significant remediation effort in FY16. These efforts are likely to
+culminate in to a request for re-inspection which we are likely to
+put in with the US FDA by June 2016. This remediation process
+has temporarily impacted our supplies and product approvals
+from this facility, which we expect to improve, once the entire
+remediation process is completed and the facility gets recertified.
+The integration of Ranbaxy into Sun Pharma is on track. Post
+the Ranbaxy acquisition in FY15, our organisation size had
+nearly doubled, mandating a significant integration effort to
+implement common values, systems and processes across the
+merged entity. The synergy benefits from this integration have
+started reflecting in our financials in FY16; and we expect to
+build further on these synergy benefits in FY17. We continue to
+target US$ 300 million in synergy benefits from this acquisition
+by FY18 and are on track to achieve this significant milestone.
+The key objective of this merger is to accelerate growth and
+create opportunities for all stakeholders. The combined
+organisation will benefit from substantial synergies that lie in
+our technologies, combined pipeline and R&D expertise, wider
+product portfolio and rationalisation of manufacturing footprint,
+driven by our larger talent pool.
+MANAGING DIRECTOR'S
+LETTER
+Dear Shareholders,
+The Global Pharmaceutical Market is expected to touch
+US$ 1.4 trillion by 2020, compared to US$ 1.0 trillion in 2015
+as per IMS. Demographics, increased incidence of chronic
+ailments, ageing population, increasing income levels and
+improved access to healthcare will be the key drivers of
+pharmaceutical demand in the coming years. However, globally
+rising health care costs continue to be a major concern for
+everyone from patients to policymakers. Population growth,
+ageing citizens and slower global economic growth are likely to
+pressurise global healthcare budgets. In such an environment,
+generic drugs are an essential part of any solution to sustaining
+the healthcare system and are the key drivers of increasing
+patient access to modern medicines.
+However, the global healthcare industry is changing rapidly.
+Product differentiation is becoming a key driver of success in
+an ever competitive and demanding industry. Businesses will
+need to be more innovative as well highly cost competitive to
+ensure long-term sustainable value for shareholders. At the
+same time, with increased expectations of various regulators,
+CGMP compliance is also becoming a key determinant of future
+success. This requires focused efforts and investments on
+the part of the industry to remain 24x7 compliant with cGMP
+norms. Large companies like ours have the capabilities and
+resources to ensure that we are able to adhere to these norms.
+Highlights of FY16
+After many years of sustainable growth, our business for
+FY16 witnessed muted growth and was in line with our annual
+guidance. We faced anticipated supply constraints and delays
+in product approvals at the Halol facility driven by the cGMP
+compliance remediation efforts. This impacted our US revenues
+for the year. We expect to eventually resolve this in future.
+However, this did not deter us from continuing to invest heavily
+in building the specialty business in the US. These investments,
+as of now, do not have commensurate revenue streams and
+hence they depress our profitability. Current profitability is after
+accounting for these investments. Our R&D efforts continue
+to be directed towards building a strong and differentiated
+product pipeline. These R&D efforts include a pragmatic mix
+of initiatives directed towards generating short-term, medium-
+term and long-term cash flows.
+Our subsidiary, Taro has done well, despite increased
+competition for some of its products. Adverse currency
+movements in certain emerging markets coupled with
+a conscious decision to reduce focus on certain non-
+remunerative businesses impacted our international revenues
+outside the US. Hence, our overall consolidated revenues were
+almost flat for the year.
+Enhancing presence in the specialty segment
+We continue to allocate significant resources towards building
+the specialty business in the US. The main objective behind this is
+our intent of building a business, which can generate sustainable
+value for all our stakeholders. These are long-gestation projects
+and there are many milestones yet to be crossed to achieve this
+objective. Our initiatives in this segment cover the entire value-
+chain, from in-licensing early-to-late stage clinical candidates,
+as well as getting access to on-market patented products.
+Dermatology and Ophthalmic are the key segments targeted
+through these initiatives, besides a few other segments. Today,
+we are amongst the leading branded companies in the US
+dermatology segment driven by innovative products like Absorica,
+Kerastick and the Topicort range of products.
+During the year, we invested heavily in the development of
+Tildrakizumab, which we had in-licensed from Merck in 2014.
+In May 2016, we announced positive results from the Phase-3
+trials of Tildrakizumab to treat chronic plaque psoriasis. We
+expect to announce the detailed results of these Phase-3 trials
+at an upcoming medical conference. Post the completion of
+these Phase-3 trials; we have commenced steps towards filing
+the Biologics License Application (BLA) for this product with the
+US FDA.
+During the year, we proceeded further with steps towards
+establishing the required specialty teams for the US market
+as well as commenced steps towards building the front-end
+distribution network necessary for the specialty segment.
+4
+- CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+Ranbaxy Integration
+Global cGMP Compliance
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+887
+2010 2011-2015
+2015
+2016-2020 2020
+47
+1,400-
+1,430
+US$ billion
+125
+1,069
+298
+178
+57
+57
+2015
+Brand
+Generic* Pharmerging Other
+Markets Markets**
+2020
+182
+6.2%
+Constant US$
+CAGR 2011-2015
+1,069
+1,430
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+MANAGEMENT
+DISCUSSION AND
+ANALYSIS
+GLOBAL PHARMACEUTICAL INDUSTRY¹
+The global pharmaceutical industry is showing signs of recovery, with several positive factors
+projected for the next five years. Global spending on medicines is expected to reach US$ 1.4
+trillion by 2020, an increase of US$ 349 billion from 2015.
+Spending will be concentrated in developed markets
+and focused on non-communicable diseases. Specialty
+therapies will continue to be more significant in developed
+markets than in pharmerging markets#.
+Global demand for pharmaceuticals will be driven by:
+➤ Demographic trends
+➤ Rise in diagnosis and treatment of chronic conditions
+> Ageing and growing global population
+➤ Improved access to healthcare
+77,254
+➤ Increasing per capita income
+1. Improving access to modern medicines in pharmerging
+countries;
+2. Enhanced use of more expensive branded medicines in
+developed markets; and
+3. Use of cheaper alternatives when loss of exclusivity
+happens
+Drivers of pharmaceutical
+spending growth - 2015-2020¹
+CHART 1
+Global pharmaceutical spending US$ billion
+and growth 2010-2020¹
+4-7%
+Constant US$
+CAGR 2016-2020
+349
+The key contributors of the US$ 349 billion in growth over
+the next five years will be:
+19.6
+18,780
+13.1
+Our business in India and the world continues to
+strengthen, despite challenges; and FY16 was a
+year of consolidation for us.
+During the year, we identified improvement
+areas in existing processes; and worked towards
+encouraging outcomes. We reinforced focus
+on global compliance, production processes,
+people potential, supply chain consistency and
+being first time right.
+We strengthened our competencies in
+the realms of cost efficiencies, sales force
+productivity and plant productivity, in line with
+the evolving market and regulatory environment.
+We accelerated execution through improved
+intra- and inter-functional collaboration.
+We continued to invest aggressively in our
+R&D backbone. The R&D spend enables
+the development of future product pipeline,
+including specialty and differentiated products.
+The implementation of the integration with
+Ranbaxy is well on its way; and we are on track to
+generate targeted synergies of US$ 300 million
+by FY18.
+We are committed to our mandate of providing
+high-quality and affordable medicines, trusted
+by customers and patients worldwide.
+WE ARE EVOLVING BETTER,
+EMERGING STRONGER AND
+MOVING FASTER.
+AND PUTTING PATIENTS
+FIRST ACROSS ALL OUR
+STRATEGIES.
+2-
+9,514
+10,354
+14,625
+15,328
+25,214
+29,295
+45,145
+Net Block
+49,827
+89,815
+144
+2,787
+Consolidated Financial Statements
+Standalone Financial Statements
+18.9
+Annual Report
+2015-16
+SUN PHARMACEUTICAL INDUSTRIES LTD.
+SUN
+PHARMA
+EVOLVINGE
+BETTER
+STRONGER
+FASTER
+MOVING
+CONTENTS
+Key Performance Indicators
+02
+Ten Year Financial Highlights
+03
+Managing Director's Letter
+04
+Management Discussion and Analysis
+06
+Board's Report
+34
+Corporate Governance
+68
+85
+116,268
+As the world's fifth largest specialty
+generic pharmaceutical enterprise and
+India's leading pharmaceutical company,
+we are leveraging the advantages of
+deeper integration and economies of
+scale globally. Our global presence is
+supported by advanced manufacturing
+facilities, state-of-the-art R&D centres
+and a multi-cultural workforce comprising
+over 50 nationalities. We have recently
+forayed into the Japanese market,
+further reinforcing our global footprint.
+Simultaneously, we continue to invest
+significant resources in enhancing our
+presence in the specialty segment.
+3,320
+FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
+FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
+FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
+FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
+FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
+FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
+* During FY05, the Company issued bonus shares in the ratio of one equity share of 5/- for every share held.
+* During FY11, each equity share of ₹5/- was split into five equity shares of ₹ 1/- each.
+* During FY14, the Company issued bonus shares in the ratio of one equity share of 1/- for every share held.
+* During FY15, the Company's equity shares have increased to 2,406 million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the Company,
+wherein 0.80 equity share of 1 each of the Company have been allotted to the shareholders of RLL for every 1.00 share of 5 each held by them.
+288,867
+3.5
+7.8
+5.6
+7.5
+26,747
+69,414
+Adjusted Earning per Share
+(Post exceptional items)*
+(per share)
+11.0
+2,859
+12.4
+6.4
+279,397
+48,879
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+KEY PERFORMANCE
+INDICATORS (CONSOLIDATED)
+2,242
+3,313
+R&D Expenditure
+7,042
+10,418
+19,550
+23,745
+35,017
+44,808
+4,449
+42,123
+― ANNUAL REPORT 2015-16
+23,025
+SUN
+PHARMA
+166,326
+(in million)
+Total Income
+116,880
+84,910
+60,827
+The lease agreements are in the name of
+Crosslands Research Laboratories Limited
+which was merged with Ranbaxy Laboratories
+Limited, erstwhile Company that was merged
+with the Company under Sections 391 to
+394 of the Companies Act, 1956 in terms of
+the approval of the Honorable High Courts of
+2.6 Gujarat and Punjab and Haryana.
+89
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Located in Punjab admeasuring
+31st March, 2016
+323,866 Square meters
+Located in Madhya Pradesh
+Located in Gujarat admeasuring
+24,000 Square meters
+Gross Block as at
+239.6
+17.0
+Particulars of the leasehold land
+admeasuring 630,552 Square meters
+419.5
+31st March, 2016 Remarks
+14
+229.0
+15
+Other Current Assets
+Short-term Loans and Advances
+Cash and Cash Equivalents
+Current Investments
+Trade Receivables
+(in Million)
+Inventories
+319,952.7
+288,462.3
+617.5
+18,952.3
+21,654.7
+23
+Other Non-current Assets
+Long-term Loans and Advances
+Current Assets
+1.0
+Nature of
+Dues
+31st March, 2016 Remarks
+(in Million)
+210.8
+Period to which the amount
+relates
+Amount
+(* in Million)#
+Income Tax
+Act, 1961
+Income Tax,
+Interest and
+Penalty
+Sales Tax
+Sales Tax,
+Act/VAT
+Forum where dispute is pending
+(Various
+States)
+The Central
+Excise Act,
+1944
+Customs
+Act, 1962
+Interest and
+Penalty
+Service Tax
+Commissioner (Appeals)
+Income Tax Appellate Tribunal
+(ITAT)
+Assistant/Additional / Senior
+Joint Commissioner
+Appellate Authority
+16
+Tribunal
+High Court
+Entry Tax
+Net Block as at
+Name of
+Statute
+(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty and Value added Tax which have
+not been deposited as at 31st March, 2016 on account of disputes, are given below:
+The lease agreements are in the name of Ranbaxy
+Laboratories Limited, erstwhile Company that was
+220.1 merged with the Company under Sections 391 to
+394 of the Companies Act, 1956 in terms of the
+approval of the Honorable High Courts of Gujarat
+and Punjab and Haryana.
+0.6 The lease agreement is in the name of Gujarat
+Lyca Limited, erstwhile Company that was
+merged with the Company under Sections 391
+to 394 of the Companies Act, 1956 in terms of
+the approval of the Honorable High Court of
+Gujarat.
+(ii) As explained to us, the inventories, excluding stocks with some of the third parties, were physically verified during the
+year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification. In
+respect of inventories lying with third parties, these have substantially been confirmed by them.
+(iii) According to the information and explanations given to us, the Company has not granted loans, secured or unsecured,
+during the year, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained
+under Section 189 of the Companies Act, 2013 ("the Act"), and hence reporting under clause (iii)(a) of paragraph 3 of
+the Order is not applicable. In respect of loans, secured or unsecured, granted during earlier years, to companies, firms,
+Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act:
+(a) In respect of loans granted to wholly owned subsidiaries, where the aggregate amount involved is ₹ 4.8 Million
+(including interest accrued), the repayments or receipts of principal amounts and interest, where due during the
+year, have been regular as per stipulations and in respect of loans granted to an associate, there is no repayment
+or receipt of the principal amount of 512.0 Million and the interest thereon of 151.5 Million, which are overdue
+as per the stipulations.
+(b) There is no overdue amount remaining outstanding as at the balance sheet date except in respect of amounts of
+512.0 Million and ₹ 135.8 Million of principal and interest respectively, aggregating to ₹ 647.8 Million given to an
+associate, which has been overdue for more than 90 days, where there is no evidence of reasonable steps having
+been taken for the recovery of the principal outstanding or interest receivable. As represented by the Management
+of the Company, the Company is evaluating various options to recover its dues in respect of principal amount and
+interest.
+Refer Note 45 to the standalone financial statements.
+(iv) The Company has not granted any loans, made investments or provided guarantees or securities during the year
+covered under Section 185 and 186 of the Act and hence reporting under clause (iv) of paragraph 3 of the Order is not
+applicable.
+Amount paid /
+adjusted under
+protest
+(in Million)
+(v) According to the information and explanations given to us, the Company has not accepted any deposit from the public
+in accordance with the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed
+thereunder and hence reporting under clause (v) of paragraph 3 of the Order is not applicable.
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+(vi) The maintenance of cost records has been specified by the Central Government under sub-section (1) of Section 148
+of the Act. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost
+Records and Audit) Rules, 2014, as amended, prescribed by the Central Government under sub-section (1) of Section
+148 of the Act, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained.
+We have, however, not made a detailed examination of the cost records with a view to determine whether they are
+accurate or complete.
+(vii) According to the information and explanations given to us, in respect of statutory dues:
+(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund,
+Employees' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value added Tax, Cess
+and other material statutory dues applicable to it with the appropriate authorities, though there have been slight
+delays in few cases.
+(b) There were no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income-
+tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value added Tax, Cess and other material statutory dues in
+arrears as at 31st March, 2016 for a period of more than six months from the date they became payable.
+90-
+17
+1,304.3
+19
+222
+Changes in Inventories of Finished Goods, Work-in-Progress
+Purchases of Stock-in-Trade
+Cost of Materials Consumed
+Expenses
+82,400.2
+80,462.8
+Total Revenue
+2,115.8
+4,318.2
+21
+80,284.4
+76,144.6
+1,403.0
+Madhya Pradesh Commercial
+Tax Appellate Board
+Customs, Excise and Service
+Tax Appellate Tribunal
+(CESTAT), Delhi
+High Court
+81,687.4
+Year ended
+31st March, 2015
+20,198.5
+22,611.1
+32
+11,700.0
+4,639.8
+10
+5,512.5
+5,306.4
+25
+14,876.5
+14,805.1
+24
+77,448.9
+2222
+Depreciation and Amortisation Expense
+Finance Costs
+Employee Benefits Expense
+and Stock-in-Trade
+3,181.0
+(684.8)
+23
+9,342.2
+Other Expenses
+20
+Year ended
+31st March, 2016
+Note No.
+Chartered Accountants
+For DELOITTE HASKINS & SELLS LLP
+In terms of our report attached
+See accompanying notes 1 to 60 forming part of the Financial Statements
+Total
+54,502.8
+374,455.5
+2,511.3
+53,437.0
+341,899.3
+RAJESH K. HIRANANDANI
+6,966.9
+4,164.6
+1,693.9
+18,028.2
+21,892.5
+939.3
+20,168.1
+824.9
+21,321.6
+456781
+7,450.3
+1,978.2
+18
+Partner
+94-
+Other Income
+Less: Excise Duty
+Revenue from Operations
+in Million
+FINANCIAL STATEMENTS
+85 - 206
+FOR THE YEAR ENDED 31ST MARCH, 2016
+STATEMENT OF PROFIT AND LOSS
+STATUTORY REPORTS
+06 - 84
+Mumbai, 30th May, 2016
+02 - 05
+Date: 30th May, 2016
+SAILESH T. DESAI
+Wholetime Director
+Mumbai
+SUDHIR V. VALIA
+Wholetime Director
+Mumbai
+New York
+DILIP S. SHANGHVI
+Managing Director
+For and on behalf of the Board
+SUNIL R. AJMERA
+Company Secretary
+Mumbai
+UDAY V. BALDOTA
+Chief Financial Officer
+Mumbai
+CORPORATE OVERVIEW
+2006 to 2011
+SUN
+1998-99 to 2000-01,
+Share Application Money Pending Allotment
+56(b)
+214,830.9
+6.7
+334.8
+225,307.7
+227,713.7
+149.0
+Non-current Liabilities
+Long-term Borrowings
+Deferred Tax Liabilities (Net)
+Other Long-term Liabilities
+Long-term Provisions
+3456
+19,292.7
+11,703.2
+135.7
+19,245.5
+143.7
+38,673.9
+24,225.1
+212,424.3
+2
+Reserves and Surplus
+48
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+BALANCE SHEET
+AS AT 31ST MARCH, 2016
+EQUITY AND LIABILITIES
+As at
+Note No.
+36,072.0
+31st March, 2016
+As at
+31st March, 2015
+Shareholders' Funds
+Share Capital
+1
+2,406.6
+2,071.2
+Share Suspense Account
+* in Million
+Current Liabilities
+Short-term Borrowings
+7
+341,899.3
+110,520.8
+374,455.5
+Tangible Assets
+10A
+35,129.0
+Intangible Assets
+10B
+552.7
+20,666.9
+Capital Work-in-Progress
+31,152.9
+699.8
+10,863.2
+Intangible Assets under Development
+42.7
+Non-current Investments
+11
+43,359.0
+222,831.1
+42,758.6
+6,606.8
+7,677.3
+SUN
+88,387.8
+31,558.3
+37,337.2
+42,528.1
+Trade Payables
+Total outstanding dues of micro enterprises and small
+enterprises
+37
+87.4
+94.0
+Total outstanding dues of creditors other than micro
+enterprises and small enterprises
+14,257.9
+Other Current Liabilities
+Total
+ASSETS
+Non-current Assets
+Fixed Assets
+17,637.0
+15,673.5
+66
+19,068.3
+Short-term Provisions
+2000-01
+93
+Partner
+Custom Duty,
+Penalty and
+Interest
+Excise Duty,
+Interest and
+Penalty
+16.1
+Settlement Commission
+2000-01
+4.2
+Commissioner (Appeals)
+2001-02 to 2014-15
+57.1
+4.5
+Tribunal
+High Court
+2001-02 to 2014-15
+1,364.2
+204.6
+2001-02 to 2004-05 and 2008-
+73.1
+3.2
+09 to 2013-14
+The Central
+Excise Act,
+1944
+4.4
+2.5
+and 2005-06 to 2010-11
+2009-10
+3,419.6
+2005-06 to 2010-11
+1995-96 to 1999-00, 2001-02
+to 2004-05, 2007-08, 2009-10
+and 2010-11
+3,313.2
+2,712.7
+5,706.5
+1999-00, 2000-01 and 2002-
+03 to 2012-13
+2.7
+Supreme Court
+0.6
+2.8
+0.4
+2013-14
+1998-99 to 2003-04
+3.0
+1999-00, 2001-02 to 2003-04
+23.5
+5.1
+1998-99, 2008-09, 2012-13 and
+# Net of amount paid / adjusted under protest
+2002-03 to 2003-04
+257,822.3
+Treatment of the excess
+remuneration in the
+respective year standalone
+financial statements
+Charged to the Statement
+of Profit and Loss
+Charged to the Statement
+of Profit and Loss
+Steps taken by the Company for securing
+refund
+We have been informed by the Management
+of the Company that they have made further
+representations to the Central Government
+in respect of their applications for approving
+the amounts of maximum remuneration for
+the three years ending 31st March, 2017,
+including for the excess amounts already paid
+/ provided. Refer Note 55 to the standalone
+financial statements
+92
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+Director
+(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of paragraph 3 of the Order is not
+applicable.
+(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly
+convertible debentures and hence reporting under clause (xiv) of paragraph 3 of the Order is not applicable to the
+Company.
+(xv) In our opinion and according to the information and explanations given to us, during the year, the Company has not
+entered into any non-cash transactions with its directors or directors of its subsidiary or associate company or persons
+connected with them and hence provisions of Section 192 of the Act are not applicable.
+(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+(Firm's Registration No. 117366W/W-100018)
+Place: Mumbai
+Date: 30th May, 2016
+RAJESH K. HIRANANDANI
+(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with
+Sections 177 and 188 of the Act, where applicable, for all transactions with the related parties and the details of related
+party transactions have been disclosed in the standalone financial statements as required by the applicable accounting
+standards.
+(Membership No. 36920)
+31st March, 2015
+Whole time
+16.9
+16.9
+-
+91
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the
+repayment of loans or borrowings to financial institutions, banks and government and dues to debenture holders.
+(ix) In our opinion and according to the information and explanations given to us, money raised by way of the term loans
+have been applied by the Company during the year for the purposes for which they were raised. The Company has not
+raised money by way of initial public offer, further public offer (including debt instruments) during the year.
+(×) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company
+and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
+10.2
+(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided
+managerial remuneration in excess of the limits and approvals prescribed under Section 197 read with Schedule V to
+the Act, to the following managerial personnel:
+Managerial
+Position
+of remuneration
+paid / provided
+(In Million)
+Managing
+10.5
+31st March, 2015
+Director
+Excess amount
+26
+Financial year ended
+35,859.8
+In terms of our report attached
+1,932.0
+1,543.4
+See accompanying notes 1 to 60 forming part of the Financial Statements
+Cash and Cash Equivalents at the end of the Year (Refer Note 17)
+16.4
+5.2
+Effect of Exchange Differences on Restatement of Foreign Currency Cash and Cash
+Equivalents
+763.2
+4,879.3
+1,932.0
+(3,726.9)
+(393.8)
+(26,740.9)
+(24,251.2)
+Pursuant to the Scheme of Amalgamation (Refer note 48)
+Cash and Cash Equivalents at the Beginning of the Year
+Net Decrease in Cash and Cash Equivalents (A+B+C)
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+RAJESH K. HIRANANDANI
+Partner
+Mumbai, 30th May, 2016
+As at 31st March, 2016
+Number of
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+SUN
+97
+Net Cash Flow used in Financing Activities (C)
+Date: 30th May, 2016
+SUDHIR V. VALIA
+Wholetime Director
+Mumbai
+New York
+Managing Director
+DILIP S. SHANGHVI
+For and on behalf of the Board
+SUNIL R. AJMERA
+Company Secretary
+Mumbai
+Chief Financial Officer
+Mumbai
+UDAY V. BALDOTA
+SAILESH T. DESAI
+Wholetime Director
+Mumbai
+Shares
+(528.0)
+Tax on Dividend
+91.3
+Proceeds from allotment of equity shares on exercise of stock options/Share
+Application Money received
+CASH FLOW FROM FINANCING ACTIVITIES
+C.
+21,528.1
+36,301.9
+Net Cash Flow from Investing Activities (B)
+892.6
+0.2
+394.5
+Dividend Received
+418.8
+3.5
+(7.4)
+(0.2)
+(3,529.9)
+4,964.2
+8,950.1
+112,962.5
+31st March, 2015
+748.7
+Proceeds from Borrowings
+Subsidiary Company
+35,480.0
+(3,104.8)
+(7,216.8)
+Dividend Paid
+(3,319.8)
+(3,655.2)
+Finance Costs (includes borrowing costs capitalised)
+(3,391.3)
+(2,360.6)
+(1,469.7)
+Net Decrease in Cash Credit Facilities and Working Capital Demand Loans
+(89,805.8)
+Others
+(27,545.7)
+Subsidiary Companies
+Repayment of Borrowings
+78,687.4
+72,231.3
+Others
+(95,833.1)
+* in Million
+As at 31st March, 2015
+Number of
+Add: Pursuant to the Scheme of Amalgamation
+Opening Balance
+Share Options Outstanding Account
+750.0
+Closing Balance
+750.0
+Less: Transferred to General Reserve
+750.0
+Add: Transferred from General Reserve
+750.0
+Opening Balance
+Debenture Redemption Reserve
+18,220.3
+18,585.2
+Closing Balance
+on exercise of options
+328.4
+(Refer Note 48)
+Add: Amortisation during the year (Employee stock option expense,
+net of options forfeited and lapsed during the year)
+98.8
+Less: Transferred to Securities premium on account of exercise of
+options
+43.8
+43.8
+Closing Balance
+(Refer Note 48)
+98-
+43.8
+Add: Pursuant to the Scheme of Amalgamation
+43.8
+132.0
+Opening Balance
+82.1
+48.9
+Closing Balance
+328.4
+205.0
+205.5
+82.1
+132.0
+Amalgamation Reserve
+Add: Transferred from employee stock options outstanding account
+594.2
+232.9
+2,406.6
+2,406.6
+2,406,605,118
+2,406,605,118
+Equity Shares of 1 each (Refer Note 29)
+6,000.0
+5,990,100,000
+10.0
+5,990.0
+5,990,000,000
+100,000
+2,071,163,910
+2,071,163,910
+5,990.0
+10.0
+6,000.0
+5,990,000,000
+100,000
+Issued, Subscribed and Fully Paid Up
+Cumulative Preference Shares of 100 each
+Equity Shares of 1 each
+Authorised
+1 SHARE CAPITAL
+* in Million
+Shares
+5,990,100,000
+in Million
+Year ended
+2,071.2
+2
+Add: Received on shares issued during the year
+14,218.0
+3,079.7
+Add: Pursuant to the Scheme of Amalgamation
+(Refer Note 48)
+18,220.3
+Opening Balance
+Securities Premium Account
+36,660.2
+36,660.2
+2,071.2
+28,369.0
+8,291.2
+36,660.2
+As at
+31st March, 2015
+31st March, 2016
+As at
+in Million
+Opening Balance
+Capital Reserve
+RESERVES AND SURPLUS (*)
+Addition during the Year (Refer Note 48 and 51)
+Closing Balance
+(30.1)
+2,116.8
+38,476.8
+132,268.1
+31st March, 2016
+(15,589.7)
+Year ended
+31st March, 2015
+* in Million
+4,639.8
+(10,679.1)
+31st March, 2016
+Year ended
+Adjustments for:
+Loss Before Tax
+A. CASH FLOW FROM OPERATING ACTIVITIES
+FOR THE YEAR ENDED 31ST MARCH, 2016
+CASH FLOW STATEMENT
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+SUN
+95
+6,606.8
+Depreciation and Amortisation Expense
+Provision for Impairment of Fixed Assets (Disclosed as Exceptional Item)
+701.3
+Sundry Balances Written Back (Net)
+377.2
+1,155.4
+Provision for Doubtful Trade Receivables / Advances / Sundry balances/Trade
+Receivables written off (net)
+(988.9)
+(3,426.8)
+Net Gain on Sale of Investments
+(0.2)
+Date: 30th May, 2016
+(394.5)
+(849.8)
+(231.2)
+Interest Income
+64.8
+5,512.5
+5,306.4
+Finance Costs
+82.3
+Loss on Sale of Fixed Assets (net)
+Dividend Income
+SAILESH T. DESAI
+Wholetime Director
+Mumbai
+SUDHIR V. VALIA
+Wholetime Director
+Mumbai
+New York
+Loss for the Year
+Deferred Tax Expense / (Credit)
+54.5
+50
+Current Tax
+Tax Expense:
+(15,589.7)
+(10,679.1)
+54.5
+(10,733.6)
+Loss Before Tax
+47
+Exceptional Item
+(15,589.7)
+(9,977.8)
+Loss Before Exceptional Item and Tax
+97,989.9
+90,440.6
+Total Expenses
+(701.3)
+(50.0)
+1,080.0
+(1,928.4)
+Earnings per Share (Face Value per Equity share -* 1)
+Managing Director
+DILIP S. SHANGHVI
+For and on behalf of the Board
+SUNIL R. AJMERA
+Company Secretary
+Mumbai
+Chief Financial Officer
+Mumbai
+UDAY V. BALDOTA
+Mumbai, 30th May, 2016
+RAJESH K. HIRANANDANI
+Partner
+(848.4)
+(14,741.3)
+Chartered Accountants
+In terms of our report attached
+See accompanying notes 1 to 60 forming part of the Financial Statements
+(6.1)
+(6.1)
+(4.5)
+Diluted (in)
+(4.5)
+Basic (in)
+39
+For DELOITTE HASKINS & SELLS LLP
+34,475.6
+Expense on Employee Stock Option Schemes
+205.0
+Associate (16,380)
+Subsidiary Company
+11,307.7
+1,135.6
+251.9
+(1,411.5)
+Purchase of Investments
+Received back/Matured from Subsidiary Companies
+Received back/Matured
+Loans/Inter Corporate Deposits
+Given / Placed
+148.4
+(10,279.8)
+(5,606.6)
+144.5
+Capital Expenditure on Fixed Assets, including Capital Advances
+Proceeds from Sale of Fixed Assets
+B. CASH FLOW FROM INVESTING ACTIVITIES
+1,485.9
+(12,444.5)
+Others
+(163.5)
+0.0
+(3.1)
+(131,969.1)
+Year ended
+Interest Received
+Margin Money Matured
+Margin Money Placed
+Fixed Deposits Matured
+Fixed Deposits Placed
+Bank Balances not considered as Cash and Cash Equivalents
+Others
+Net Cash Flow from/ (used in) Operating Activities (A)
+Subsidiary Companies
+FINANCIAL STATEMENTS
+85 - 206
+FOR THE YEAR ENDED 31ST MARCH, 2016
+CASH FLOW STATEMENT
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+96-
+(103,605.0)
+Proceeds from Sale of Investments
+(1,934.8)
+(3,527.3)
+Net Income Tax Paid
+Trade Receivables
+4,242.7
+570.9
+Inventories
+Adjustments for (Increase) / Decrease in Operating Assets:
+Changes in working capital:
+(9,729.9)
+(5,771.1)
+Net Block as at
+467.4
+Operating Loss Before Working Capital Changes
+Net Unrealised Foreign Exchange Gain
+Provision in respect of losses of a subsidiary
+306.4
+0.0
+Provision for other-than-temporary diminution in value of non-current investment in
+an associate (16,380)
+(70.3)
+Reversal for diminution in value of current investments
+122.9
+(820.2)
+(3,494.9)
+98.8
+(2,888.3)
+Loans and Advances
+3,420.7
+(8,917.2)
+Cash Generated from/ (used in) Operations
+89.9
+(2017.1)
+Provisions
+(22,978.2)
+(1,167.4)
+2,771.1
+Other Liabilities
+1,761.4
+Trade Payables
+Adjustments for Increase / (Decrease) in Operating Liabilities:
+28,356.5
+(427.4)
+Other Assets
+(521.1)
+(1,254.4)
+1,189.7
+3.3
+(in Million)
+*includes composite consideration for
+land and building.
+Located in Goa admeasuring 1,000
+Square meter
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+ANNEXURE "B" TO THE
+(REFERRED TO IN PARAGRAPH 2 UNDER 'REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS' SECTION OF OUR REPORT OF EVEN DATE TO THE
+MEMBERS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED)
+Particulars of the freehold land
+Located in Himachal Pradesh admeasuring 645,150
+Square meters
+Located in Punjab admeasuring 370,527 Square meters
+Located in Haryana admeasuring 64,161 Square meters
+Located in Madhya Pradesh admeasuring 91,330
+Square meters
+Located in Karnataka admeasuring 30,362 Square
+meters
+Located in Punjab admeasuring 8,364 Square meters
+INDEPENDENT AUDITOR'S REPORT
+31st March, 2016 Remarks
+Gross/Net Block as at
+Located in Maharashtra admeasuring
+20,000 Square meters.
+31st March, 2016
+Particulars of the leasehold land
+(in Million)
+* 25.8
+In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed assets in
+the standalone financial statements, the lease agreements are in the name of the Company, where the Company is the
+lessee in the agreement, except the following:
+Gross Block as at
+In respect of a building where the Company is entitled to the right of occupancy and use and disclosed as fixed assets in
+the standalone financial statements, we report that the agreement / non-convertible preference shares / compulsorily
+convertible debentures entitling the right of occupancy and use of building, are in the name of the Company as at the
+balance sheet date.
+2.5 The title of this land is under dispute in respect
+of which we have been informed by the
+Management of the Company that they have
+filed a Special Leave Petition with the Honorable
+Supreme Court against the order passed by the
+Honorable High Court of Punjab and Haryana and
+the matter is under adjudication.
+28.3
+The title deeds are in the name of Ranbaxy
+Laboratories Limited, erstwhile Company that
+27.2 was merged with the Company under Sections
+109.0
+391 to 394 of the Companies Act, 1956 in terms
+of the approval of the Honorable High Courts of
+5.8
+Gujarat and Punjab and Haryana.
+(in Million)
+76.3
+SUN
+10,000 (Previous Year 10,000) Shares of 10 each fully
+paid
+0.1
+0.1
+103
+Faststone Mercantile Company Private Limited
+1,000 (Previous Year 1,000) Shares of Bolivars (Bs.F.) 100
+1.5
+1.5
+Sun Pharma Laboratories Limited
+each, Bolivars (Bs.F.) 50 per share paid
+0.5
+PHARMA
+50,000 (Previous Year 50,000) Shares of 10 each fully
+paid
+― ANNUAL REPORT 2015-16
+31st March, 2015
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+104
+Neetnav Real Estate Private Limited
+10,000 (Previous Year 10,000) Shares of 10 each fully
+paid
+Realstone Multitrade Private Limited
+in Million
+As at
+As at
+31st March, 2016
+0.5
+0.1
+0.1
+0.1
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Sun Pharma De Venezuela, C.A.
+149 (Previous Year 149) Ordinary Shares of Soles 10
+each fully paid
+1.0
+18.3
+18.3
+829,288 (Previous Year 829,288) quota of Capital Stock
+of Real 1 each fully paid
+Sun Pharma De Mexico, S.A. DE C.V.
+3.3
+3.3
+750 (Previous Year 750) fully paid Common Shares of no
+Face Value
+Sun Pharmaceutical (Bangladesh) Limited
+434,469 (Previous Year 434,469) Ordinary Shares of 100
+36.5
+36.5
+Takas each fully paid
+Share Application Money
+31.6
+100,000 (Previous Year 100,000) Shares of 10 each
+fully paid
+31.6
+0.0
+0.0
+[21,734 (Previous Year 21,734)]
+0.1
+SPIL DE Mexico S.A. DE CV
+0.2
+0.2
+100 (Previous Year 100) Nominative and free Shares of
+500 Mexican Pesos each fully paid
+OOO "Sun Pharmaceutical Industries" Limited
+8.8
+8.8
+Par value stock of 5,249,500 Rouble (Previous Year
+5,249,500 Rouble) fully paid
+Green Eco Development Centre Limited
+1.0
+Sun Pharmaceutical Peru S.A.C.
+10,000 (Previous Year 10,000) Shares of 10 each fully
+paid
+250.1
+163.6
+4,709.1
+4,709.1
+24,116,505 (Previous Year 24,116,505)
+Ordinary Shares of Euro 1 each fully paid
+Less: Provision for other-than-temporary diminution in
+value of non-current investment
+(4,709.1)
+(4,709.1)
+Ranbaxy Malaysia Sdn. Bhd.
+36.6
+36.6
+3,189,248 (Previous Year 3,189,248) Ordinary Shares of
+RM 1 each fully paid
+Ranbaxy Nigeria Limited
+7.4
+7.4
+Ranbaxy Pharmacie Generiques SAS
+13,070,648 (Previous Year 13,070,648) Ordinary Shares
+ii)
+In Associate Company
+Daiichi Sankyo (Thailand) Limited
+21.2
+21.2
+206,670 (Previous Year 206,670) Ordinary Shares of
+Bahts 100 each fully paid
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+iii) In Other Companies
+Enviro Infrastructure Co. Limited
+100,000 (Previous Year 100,000) Shares of 10 each
+fully paid
+of Naira 1 each fully paid
+Euro 100 each fully paid
+5,473,340 (Previous Year 5,473,340) Ordinary Shares of
+39,839.4
+0.1
+16,360,000 (Previous Year 10,000) Shares of 10 each
+fully paid
+Softdeal Trading Company Private Limited
+0.1
+0.1
+10,000 (Previous Year 10,000) Shares of 10 each fully
+paid
+Sun Pharma Holdings
+855,199,716 (Previous Year 855,199,716) Shares of USD
+1 each fully paid
+54,031.5
+Share Application Money
+Vidyut Investments Limited
+Sun Farmaceutica do Brasil Ltda
+54,031.5
+3.1
+250.1
+25,008,400 (Previous Year 25,008,400) Shares of 10
+each fully paid
+Less: Provision for other-than-temporary diminution in
+value of non-current investment
+39,839.4
+Ranbaxy (Netherlands) B.V.
+4,900 (Previous Year 4,900) Shares of 100 each fully
+paid
+535.2
+535.2
+Gufic Pharma Limited
+Skisen Labs Private Limited
+3,100,020 (Previous Year 3,100,020) Shares of 10
+each fully paid
+31.0
+Ranbaxy Drugs Limited
+11.1
+(239.0)
+11.1
+(239.0)
+31.0
+8,387,666 (Previous Year 8,387,666) fully paid Common
+Shares of no Par Value
+Quoted
+304.2
+23.9
+1,217.8
+462.5
+591.8
+(ii)
+(-)
+(865.1)
+(184.9)
+(2.4)
+(1,047.6)
+(591.8)
+(-)
+Trademarks, Designs and
+1,184.1
+194.1 ()
+8.4
+1,192.5
+1,076.1
+26.2
+1,102.3 (ii)
+Other Intangible Assets
+(356.7)
+(795.7)
+(31.7)
+(-) (1,184.1)
+(260.6)
+(769.4)
+(46.1)
+(-)
+(1,076.1)
+-
+1,047.6
+1,680.3
+(3.2) (1,639.4)
+(142.9)
+(421.1)
+(813.4)
+(188.4)
+(27.4) (1,395.5)
+(187.0)
+(16.2)
+(752.5)
+(643.0)
+(234.1)
+Total Tangible Assets (A)
+Previous Year
+57,127.2
+9,321.0
+723.4
+(19,378.6)
+(32,717.2)
+(5,705.1)
+(673.7)
+(1,499.7)
+(-)
+26.6
+67.5
+1,639.4
+(Other than internally generated)
+Computer Software
+90.2
+(108.0)
+B. Intangible Assets
+31,152.9
+35,129.0
+499.3 30,595.8
+(461.2) (25,974.3)
+5,120.8
+(13,256.7) (6,375.8)
+25,974.3
+(6,803.0)
+65,724.8
+(57,127.2)
+(31,152.9)
+304.2
+108.0
+Total Intangible Assets (B)
+Previous Year figures are in brackets.
+(vi)
+(vii)
+* Refer Note 42(a)
+# Refer Note 48
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+11 NON-CURRENT INVESTMENTS
+Long-term Investments (*)
+Trade Investments
+a) In Equity Instruments
+Deletions/Adjustments during the previous year includes refund received from authorities in respect of dismantling charges.
+Borrowing cost capitalised during the year 62.1 Million (Previous Year 56.8 Million)
+FINANCIAL STATEMENTS
+85 - 206
+As at
+31st March, 2016
+As at
+31st March, 2015
+Shimal Research Laboratories Limited
+Zenotech Laboratories Limited an Associate (**)
+2,463.5
+2,463.5
+16,128,078 (Previous Year 16,127,293) Shares of * 10 each
+fully paid
+Less: Provision for other-than-temporary diminution in value
+of non-current investment
+(2,463.5)
+(2,463.5)
+Unquoted
+i)
+In Subsidiary Companies
+Sun Pharmaceutical Industries, Inc.
+* in Million
+(v)
+(iv)
+(!!!)
+2,823.5
+75.9
+26.6
+2,872.8
+2,123.7
+220.3
+23.9
+2,320.1
+552.7
+699.8
+Previous Year
+(356.7)
+(2,295.4)
+(174.6)
+Total Fixed Assets (A) + (B)
+Previous Year
+59,950.7
+(19,735.3)
+(ii) Includes Impairment of 1,072.9 Million (Previous Year 371.6 Million) including 701.3 Million (Previous Year Nil) on account of Impairment for the year.
+Freehold land includes land valued at 25.5 Million (Previous Year 25.5 Million) pending registration in the name of the Company.
+Include Leasehold improvements.
+(i) Buildings include 8,620 (Previous Year 8,620) towards cost of shares in a Co-operative Housing Society and also includes 1.1 Million (Previous Year 1.1 Million)
+and 1,133.0 Million (Previous Year 1,133.0 Million) towards cost of non-convertible Preference shares of face value of 10/- each and compulsorily convertible
+Debentures of face value of 10,000/- each respectively in a company entitling the right of occupancy and use of premises.
+Footnotes:
+35,681.7 31,852.7
+(31,852.7)
+523.2 32,915.9
+(463.6) (28,098.0)
+(699.8)
+(96.1)
+(2.4) (2,123.7)
+.
+(1,634.5)
+(260.6)
+28,098.0
+(7,063.6)
+(3.2) (2,823.5)
+750.0 68,597.6
+(676.9) (59,950.7)
+9,396.9
+(5,879.7)
+(35,012.6)
+(231.0)
+5,341.1
+(14,891.2) (6,606.8)
+9,340,000 (Previous Year 9,340,000) Shares of 10 each
+fully paid
+Shivalik Solid Waste Management Limited
+31st March, 2016
+As at
+31st March, 2016
+As at
+31st March, 2015
+15 INVENTORIES
+Raw Materials and Packing Materials
+Goods-in-Transit
+7,949.1
+602.3
+Work-in-Progress (Refer Note 34)
+8,551.4
+6,322.0
+9,565.7
+323.4
+9,889.1
+6,118.9
+Finished Goods
+5,621.1
+4,175.5
+* in Million
+Goods-in-Transit
+15.7
+4,191.2
+(Refer Note 34)
+Stock in trade
+379.3
+Goods-in-Transit
+61.0
+440.3
+1,326.7
+61.8
+1,388.5
+(Refer Note 34)
+Other Materials and Consumables
+386.8
+21,321.6
+304.8
+21,892.5
+5,621.1
+939.3
+Book Value Market Value
+93.4
+89.3
+850.0
+112.3
+Krebs Biochemicals and Industries Limited
+1,050,000 (Previous Year 1,050,000) Shares of 10 each fully
+paid
+In Mutual Funds (Unquoted)
+Units of Face Value of 100 each fully paid
+ICICI Prudential Mutual Fund-ICICI Prudential Money Market
+Fund-Direct Plan-Growth
+Nil (Previous Year 1,810,104) Units
+Units of Face Value of 1,000 each
+Pramerica Mutual Fund-Pramerica Liquid Fund-Direct Plan-
+Growth Option fully paid
+Nil (Previous Year 335,039) Units
+FINANCIAL STATEMENTS
+85 - 206
+* in Million
+As at
+31st March, 2016
+As at
+31st March, 2015
+In Commercial Paper (Unquoted)
+Housing Development Finance Corporation Limited-90D
+CP11APR16
+491.0
+1,000 (Previous Year Nil) Units of 500,000 each fully paid
+JM Financial Products Limited- 85D CP 28APR16
+89.3
+735.6
+Book Value Market Value
+735.6
+824.9
+850.0
+89.3
+500.0
+107
+350.0
+Unquoted
+Quoted
+Aggregate Value Of Investments
+Total
+500 (Previous Year Nil) Units of 500,000 each fully paid
+244.6
+89.3
+14 CURRENT INVESTMENTS (At lower of cost and fair value)
+In Equity Instruments (Quoted)
+SUN
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Cheques on Hand
+5.5
+3.8
+7.9
+40.0
+Balances with Banks
+In Current Accounts
+368.0
+1,624.8
+In Deposit Accounts with Original Maturity less than 3 Months
+In EEFC Accounts
+13.7
+1,166.1
+1,534.1
+1,543.4
+245.6
+1,884.1
+1,932.0
+Cash on Hand
+Other Bank Balances
+17.3
+2,104.0
+In Earmarked Accounts
+Unpaid Dividend Accounts
+63.0
+58.6
+Balances held as Margin Money or Security against Guarantees
+and Other Commitments (*)
+70.2
+150.5
+70.0
+2,232.6
+1,693.9
+4,164.6
+(*) Other Bank Balances include Deposits amounting to 2.8 Million
+(Previous Year Nil) and Margin Monies amounting to * 70.2 Million
+(Previous Year 70.0 Million) which have an Original Maturity of more
+than 12 Months.
+In Deposit Accounts (*)
+15,436.1
+18,028.2
+16,444.3
+20,168.1
+169.9
+PHARMA
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+16 TRADE RECEIVABLES
+(Unsecured - Considered Good unless stated otherwise)
+Outstanding for a period exceeding six months from the date they are
+due for payment
+Considered Good
+Considered Doubtful
+Less: Provision for Doubtful Trade Receivables
+Other Trade Receivables
+Considered Good
+Considered Doubtful
+Less: Provision for Doubtful Trade Receivables
+17 CASH AND CASH EQUIVALENTS
+108
+Balances that meet the definition of Cash and Cash Equivalents
+as per AS3 Cash Flow Statements
+15,436.1
+16,614.2
+169.9
+15,436.1
+16,444.3
+2,592.1
+― ANNUAL REPORT 2015-16
+467.0
+2,592.1
+467.0
+3,059.1
+944.1
+4,667.9
+944.1
+3,723.8
+As at
+31st March, 2015
+in Million
+As at
+31st March, 2016
+3,723.8
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+STATUTORY REPORTS
+06 - 84
+Ranbaxy Drugs Limited
+0.0
+0.0
+250 (Previous Year 250) 10% Non-Convertible Redeemable
+Preference Shares of 10 each fully paid. [2,500 (Previous
+Year 2,500)]
+Alkaloida Chemical Company Zrt.
+402.6
+Nil (Previous Year 150,000) 2% Redeemable Preference
+Shares of $15 each fully paid at a premium of $35 per share
+Sun Pharma Holdings
+127,345.2
+162,094.2
+2,015,593,148 (Previous Year 2,565,593,148) 5% Optionally
+Convertible Preference Shares USD 1 each fully paid
+Sub-total (b)
+127,745.2
+162,896.8
+c)
+4,000,000 (Previous Year 4,000,000) 10% Non-Convertible,
+Non-Cummulative Redeemable Preference Shares of 100
+each fully paid
+In Government Securities
+Sub-total (c)
+Total (a+b+c)
+0.0
+0.0
+0.0
+0.0
+222,831.1
+257,822.3
+105
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+National Savings Certificates 10,000 (Previous Year 10,000)
+(Deposited with Government Authorities)
+400.0
+400.0
+Sun Pharma Laboratories Limited
+934.0
+1.0
+FINANCIAL STATEMENTS
+85 - 206
+* in Million
+As at
+31st March, 2015
+934.0
+1.0
+Less: Provision for other-than-temporary diminution in
+value of non-current investment
+(934.0)
+(934.0)
+(ii)
+0.2
+0.2
+20,000 (Previous Year 20,000) Shares of 10 each fully
+paid
+Biotech Consortium India Limited
+0.5
+0.5
+In Subsidiary Companies
+In Preference Shares (Unquoted)
+b)
+94,925.5
+95,085.9
+Sub-total (a)
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+140,625 (Previous Year 140,625) Shares of 10 each
+fully paid
+1.4
+Nimbua Greenfield (Punjab) Limited
+(0.5)
+(0.5)
+Less: Provision for other-than-temporary diminution in
+value of non-current investment
+50,000 (Previous Year 50,000) Shares of 10 each fully
+paid
+1.4
+Aggregate Value of Investments
+As at
+2,463.5
+Unsecured
+Prepaid Expenses
+Advance Income Tax [Net of Provisions 10,894.5 Million
+(Previous Year 10,894.5 Million)]
+MAT Credit Entitlement (Refer Note 50)
+Balances with Government Authorities
+23.0
+40.3
+80.7
+103.7
+115.8
+156.1
+55.4
+61.1
+10,062.5
+6,589.7
+7,517.0
+7,517.0
+02 - 05
+CORPORATE OVERVIEW
+106
+418.5
+1.0
+419.5
+617.5
+1.0
+Secured
+616.5
+(Unsecured - Considered Good)
+13 OTHER NON-CURRENT ASSETS
+18,952.3
+21,654.7
+1,368.6
+1,070.0
+Receivable towards forward contracts / derivative instruments
+Deposits Account - Pledged with Government Authorities
+As at
+Loans and Advances to Employees/Others
+2,467.4
+374.3
+4.4
+228,713.7
+31st March, 2016
+Book Value Market Value
+541.9
+As at
+* in Million
+31st March, 2015
+Book Value
+Market Value
+2,463.5
+729.8
+263,704.9
+Quoted (at Cost)
+Unquoted (at Cost)
+Total
+231,177.2
+266,168.4
+Provision for other-than-temporary diminution in value of non-current
+investment (Quoted)
+(2,463.5)
+Loans and Advances to Related Parties (Refer Note 44)
+Security Deposits
+(Unsecured - Considered Good unless stated otherwise)
+Capital Advances
+12 LONG-TERM LOANS AND ADVANCES
+As at
+31st March, 2015
+31st March, 2016
+2,827.6
+427.8
+4.4
+As at
+(**) The shares of this entity are thinly traded and therefore, market
+price has not been considered for the purpose of assessment of other
+than temporary diminution in the value of its non-current investment
+in Zenotech Laboratories Limited.
+(*) At Cost less provision for other than temporary diminution in value,
+if any.
+(5,882.6)
+(5,882.6)
+Provision for other-than-temporary diminution in value of non-current
+investment (Unquoted)
+(2,463.5)
+in Million
+(iv)
+(372.7) (209.0)
+661.1
+100
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+As at
+31st March, 2016
+8 OTHER CURRENT LIABILITIES
+42,528.1
+Current maturities of Long term debt (Refer Note 57A)
+Interest Accrued but not due on borrowings
+91.8
+Unclaimed/Unpaid Dividends
+Statutory Remittances
+Payables on Purchase of Fixed Assets
+Advances from Customers
+275.4
+Trade/Security Deposits Received
+1.5
+1,722.8
+Product Settlement, Claims, Recall Charges and Trade Commitments
+Others
+37,337.2
+Commercial Paper
+MTM Loss on outstanding Forward Contracts / Derivative Instruments
+Others (Refer Note 58)
+212.5
+17,586.0
+19,245.5
+22,402.0
+24,225.1
+7
+SHORT-TERM BORROWINGS
+Loans Repayable on Demand
+Secured
+12,500.0
+From Banks (Refer Note 57B)
+2,739.0
+Unsecured
+From Banks
+26,756.8
+27,223.4
+Loans and Advances from a related party (Unsecured)
+8,019.9
+65.7
+Other Loans and Advances (Unsecured)
+2,560.5
+1,610.6
+14,674.5
+19,068.3
+7,219.5
+Corporate Dividend Tax
+74.7
+1,469.7
+Provision in respect of losses of subsidiaries
+1,569.8
+1,286.6
+Others (Refer Note 58)
+9,374.3
+14,257.9
+2,406.8
+5,346.6
+101
+102-
+10 FIXED ASSETS
+*in Million
+SUN
+PHARMA
+ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+20,666.9
+52.0
+Dividend proposed to be distributed to Equity Shareholders
+220.8
+72.8
+1,339.0
+838.5
+FINANCIAL STATEMENTS
+85 - 206
+* in Million
+As at
+31st March, 2015
+13,875.5
+221.7
+4,939.9
+65.7
+1,196.4
+14,276.4
+187.7
+31,558.3
+9
+SHORT-TERM PROVISIONS
+Employee Benefits (Refer Note 41)
+611.5
+404.6
+MTM Loss on outstanding Forward Contracts / Derivative Instruments
+699.1
+1,035.8
+1,659.5
+Employee Benefits (Refer Note 41)
+LONG-TERM PROVISIONS
+34,029.3
+29,260.0
+5,519.3
+750.0
+750.0
+34,779.3
+34,029.3
+135,522.0
+160.6
+158,791.9
+(10,733.6)
+2,406.8
+As at
+31st March, 2015
+(14,741.3)
+7,219.5
+122,306.9
+212,424.3
+1,469.7
+135,522.0
+225,307.7
+(*) During the previous year, pursuant to the scheme of arrangement duly approved by the relevant Hon'ble High Courts, the debit balance in the Statement of
+Profit and Loss of 34,102.7 Million in the books of the Transferor Company on the close of 31st March, 2014 had been adjusted by the Transferor Company
+by reduction of its Capital Reserve and Securities Premium Account of ₹1,762.0 Million and * 32,340.7 Million respectively. The remaining balance of * 3,079.7
+Million in the Securities Premium Account of the Transferor Company as at close of 31st March, 2014 had been taken over by the Company (Transferee
+Company) and was included in Securities Premium Account, as on 1st April, 2014, being the appointed date of the amalgamation referred in Note 48.
+(**) Computed in terms of Section 115-0 read with sub-sections 1 and 1A of the Income Tax Act, 1961.
+3
+LONG-TERM BORROWINGS
+Secured
+Term Loan from Department of Biotechnology (Refer Note 57A)
+Unsecured
+Term Loans from Banks (Refer Note 57A)
+74.7
+As at
+As at
+31st March, 2016
+FINANCIAL STATEMENTS
+85 - 206
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+General Reserve
+Opening Balance
+Add: Pursuant to the Scheme of Amalgamation (Refer Note 48)
+Add: Transferred from Debenture Redemption Reserve
+* in Million
+Less: Transferred to Debenture Redemption Reserve
+Surplus in Statement of Profit and Loss
+Opening Balance
+Add: Pursuant to the Scheme of Amalgamation
+(Refer Note 51)
+Add: Loss for the Year
+Less: Dividend proposed to be distributed to equity Shareholders -
+[1.0 (Previous Year 3.0 per Share)]
+Less: Corporate Dividend Tax (**)
+Closing Balance
+Closing Balance
+in Million
+As at
+31st March, 2016
+31st March, 2015
+Deferred Tax Assets
+Unpaid Liabilities Allowable on payment basis u/s 43B of the
+Income Tax Act, 1961
+378.9
+426.9
+Unabsorbed Depreciation/Carried forward Losses (*)
+Others
+2,160.0
+987.1
+3,526.0
+2,820.6
+645.6
+3,893.1
+Less :
+(*) restricted to the extent of deferred tax liability.
+Interest accrued but not due on borrowings
+Trade/Security Deposits Received
+643.0
+130.8
+135.7
+3.4
+140.3
+143.7
+6
+5 OTHER LONG-TERM LIABILITIES
+3,893.1
+165.9
+3,526.0
+77.3
+77.3
+19,215.4
+19,292.7
+11,625.9
+11,703.2
+99
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+4
+DEFERRED TAX LIABILITIES (Net)
+Deferred Tax Liabilities
+As at
+31st March, 2016
+* in Million
+As at
+31st March, 2015
+Depreciation on Fixed Assets
+Others
+3,357.0
+169.0
+3,727.2
+Description of Assets
+Gross Block (At Cost)
+4.9
+As at
+(0.5)
+(-)
+(7.6)
+(16.9)
+(17.4)
+21,498.1
+4,076.6 (ii)
+353.6
+(5,535.9)
+(-)
+(10,867.3) (5,449.3)
+25,221.1
+(21,498.1)
+22,300.1
+19,955.9
+(ii)
+(19,955.9)
+(9,037.9)
+5.9
+1.2
+7.1
+(354.4)
+19.4
+(7.1)
+(2,555.9)
+16.9
+2.2
+(1)
+(742.2)
+(1,610.9)
+(279.7)
+(0.3)
+123
+(47.3)
+(562.4)
+(i)
+(126.3)
+10,376.2
+8,571.5
+(ii)
+(2,632.5)
+(8,571.5)
+7.6
+0.5
+8.1
+16.4
+3,291.5
+661.2 (ii)
+(4.1)
+(1.8)
+(538.4)
+(195.8)
+(26.9)
+(231.7)
+(209.8)
+(315.2)
+(19.9)
+(736.8)
+(386.7)
+(416.2)
+(184.5)
+1,395.5
+165.7
+23.1
+752.5
+-
+145.0 (ii)
+20.5
+877.0
+Depreciation/Amortisation / Impairment
+Furniture and Fixtures
+(-)
+(!!)
+338.4
+(-)
+(19.4)
+(21.2)
+293.6
+102.1 (ii)
+90.8
+304.9
+340.2
+466.2
+386.7
+(83.5)
+(113.4)
+(70.4)
+(293.6)
+(466.2)
+(206.2)
+736.8
+127.3 (ii)
+25.1
+839.0
+(167.1)
+2,632.5
+(5.9)
+(6.9)
+(-)
+Leasehold Land
+609.7
+(137.8)
+(478.7)
+(-)
+(6.8)
+Buildings
+11,204.0
+(88.8)
+-
+11.8
+(3,298.1)
+(6,177.8)
+(1,731.0)
+(2.9)
+Buildings - Leased *
+24.5
+(24.5)
+(-)
+2,475.5
+(-)
+(192.1)
+530.9
+01.04.2015
+(-)
+Pursuant to
+Amalgamation
+Additions/
+Deletions/
+As at
+adjustments
+Adjustments 31.03.2016
+As at Pursuant to
+01.04.2015 Amalgamation #
+10.2
+For the
+On
+Deletions for 31.03.2016
+As at
+Net Block
+As at
+31.03.2016
+As at
+31.03.2015
+#
+during the year during the year
+the year
+A. Tangible Assets
+Freehold Land
+year
+(-)
+(250.0)
+41,454.0
+30.8
+32022 276
+541.1
+530.9
+(!!!)
+(-)
+(-)
+(-)
+(-)
+(530.9)
+(192.1)
+47.3
+6.9
+54.2
+555.5
+562.4
+(609.7) (v)
+3
+Plant and Equipment
+(11.5)
+(28.9)
+84.7
+1,123.5
+(-)
+Office Equipment
+448.9
+(14,573.8)
+(23,944.9)
+(3,381.0)
+(445.7)
+6,516.1
+25.3
+25.3
+(25.3)
+(-)
+Plant and Equipment - Leased *
+(-)
+Vehicles
+759.8
+68.8
+183.5
+(289.7)
+(514.0)
+(120.1)
+(-)
+(164.0)
+CORPORATE OVERVIEW
+V
+IV
+III
+27 SIGNIFICANT ACCOUNTING POLICIES
+STATUTORY REPORTS
+06 - 84
+NOTES
+FINANCIAL STATEMENTS
+85 - 206
+02 - 05
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Basis of Accounting
+Revenue Recognition
+Use of estimates
+The presentation of financial statements in conformity with the generally accepted accounting principles in India
+requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of
+the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference
+between the actual result and estimates are recognised in the period in which the results are known/ materialised.
+Fixed Assets and Depreciation / Amortisation
+Fixed Assets including intangible assets are stated at historical cost (net of cenvat credit) less accumulated
+depreciation/amortisation thereon and impairment losses, if any. Depreciation on tangible assets is provided on
+straight line method on the basis of useful lives of fixed assets as indicated in Part C of Schedule II of the Companies
+Act, 2013 and amendment thereto vide notification dated 29th August, 2014 issued by Ministry of Corporate Affairs.
+Assets costing 5,000/- or less are charged off as expense in the year of purchase. Intangible assets consisting
+of trademarks, designs, technical knowhow, non-compete fees and other intangible assets, including computer
+software, are amortised on straight line method from the date they are available for use, over the useful life of the
+assets (5-20 years), as estimated by the Management. Leasehold land is amortised over the period of lease.
+Leases
+Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with
+the lessor are recognised as operating lease. Lease rental income under operating leases is recognised in the
+Statement of Profit and Loss on a straight-line basis over the lease term. Total lease rental in respect of an fixed
+asset taken on operating lease is charged to the Statement of Profit and Loss on a straight line basis over the
+lease term. For assets given under finance lease, amounts are recognised as receivables at an amount equal to
+the net investment in the lease and the finance income is recognised based on a constant rate of return on the
+outstanding net investment in accordance with Accounting Standard (AS) 19 - "Leases". Assets leased by the
+Company in its capacity as a lessee, where substantially all the risk and rewards of ownership vest in the Company
+are classified as finance leases. Such leases are capitalised at the inception of the lease at the lower of the fair value
+and the present value of the minimum lease payments. Liability is created for an equivalent amount.
+Investments
+VI
+Sale of products is recognised when risks and rewards of ownership of the products are passed on to the customers,
+which is generally on despatch of products. Export sales are recognised on the basis of Bill of lading/Airway bill. Sales
+include delayed payment charges and are stated net of returns including provision made on account of estimated
+breakages and expiry date based on past experience, applicable discounts, and VAT / Sales Tax, if any. Other operating
+income is recognised on an accrual basis and where applicable in accordance with the terms of the relevant agreements.
+992.8
+7,310.1
+These financial statements are prepared under historical cost convention on an accrual basis in accordance with
+the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards
+prescribed under Section 133 of the Companies Act, 2013, and the relevant provisions of the Companies Act,
+2013. The accounting policies adopted in the preparation of the financial statements are consistent with those
+followed in the previous year.
+599.9
+8,302.9
+200.9
+1,287.7
+7,750.2
+15.0
+Investments are classified into Current and Long Term Investments. Current Investments are valued at lower
+of cost and fair value. Long Term Investments are stated at cost less provision, if any, for other than temporary
+diminution in value.
+191.2
+119.7
+419.1
+237.8
+372.5
+29.1
+34.5
+263.5
+186.8
+53.8
+51.7
+1,464.6
+1,061.6
+0.6
+580.3
+9,037.9
+2.1
+2.7
+1,271.7
+976.1
+13.9
+14.0
+113
+NOTES
+PHARMA
+(a) The Company's contribution in respect of provident fund and other funds is charged to the Statement of
+Profit and Loss each year. With respect to certain employees contribution is made to the provident fund trust
+maintained by the Company. Provident fund liability for the trust is as determined on actuarial basis by the
+independent valuer is charged to the Statement of Profit and Loss.
+(b) With respect to gratuity liability, Company contributes to Life Insurance Corporation of India (LIC) under LIC's
+Group Gratuity policy except for certain employees, the gratuity benefit of retirement plan where contribution
+is made to a gratuity fund established as a trust. Gratuity liability as determined on actuarial basis by the
+independent valuer is charged to the Statement of Profit and Loss.
+(c) Pension plan, a defined benefit retirement plan, provides for lump sum payment to eligible employees at
+retirement. The pension liability, determined on actuarial basis by an independent valuer, is charged to the
+Statement of Profit and Loss.
+(d) Liability for accumulated compensated absences of employees being other long term employee benefit is
+ascertained for on actuarial valuation basis by an independent valuer and provided for as per the Company
+rules.
+(e) Actuarial gains and losses are recognised in the Statement of Profit and Loss in the year in which they arise.
+XIII Employee Stock Option based Compensation
+With respect to employee stock option, the fair value of the options is calculated by using Black Scholes pricing
+model, in respect of the number of options that are expected to ultimately vest. Such cost is recognised on a
+straight line basis over the vesting period. Adjustment, if any, for difference in initial estimate for number of options
+that are expected to ultimately vest and related actual experience is recognised in the Statement of Profit and Loss
+of that period. In respect of vested options that expire unexercised, the cost is reversed in the Statement of Profit
+and Loss of that period.
+XIV Borrowing Costs
+Borrowing costs attributable to the acquisition or construction of qualifying assets upto the date of capitalisation of
+such assets are capitalised and added to the cost of asset. Other borrowing costs are recognised as an expense in
+the period in which they are incurred.
+XV Provisions, Contingent Liabilities and Contingent Assets
+XII Employee Benefits
+Provisions are recognised only when there is a present obligation as a result of past events and it is probable
+that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate of the
+amount of the obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be
+confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising
+from past events where it is not probable that an outflow of resources will be required to settle the obligation or
+a reliable estimate of the amount of the obligation cannot be made. Contingent Assets are not recognised in the
+financial statements.
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+XVI Government Grants / Subsidy
+Government grants, if any, are accounted when there is reasonable assurance that the enterprise will comply
+with the conditions attached to them and it is reasonably certain that the ultimate collection will be made. Capital
+subsidy in nature of government grants related to specific fixed assets is accounted for where collection is
+reasonably certain and the same is shown as a deduction from the gross value of the asset concerned in arriving
+at its book value and accordingly the depreciation is provided on the reduced book value.
+XVII Impairment of Assets
+The Company assesses, at each Balance Sheet date, whether there is any indication that an asset may be
+impaired. An intangible asset that is amortised over a period exceeding ten years from the date when the asset is
+available for use is tested for impairment each financial year even if there is no indication that the asset is impaired.
+If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable
+amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less
+than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as
+an impairment loss and is recognised in the Statement of Profit and Loss. If at the Balance Sheet date there is an
+indication that if a previously assessed impairment loss no longer exists or may have decreased, the recoverable
+amount is reassessed and the asset is reflected at the lower of recoverable amount and the carrying amount
+that would have been determined had no impairment loss being recognised. Such reversal of impairment loss is
+recognised in the Statement of Profit and Loss.
+27.0
+115
+income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax
+liability. MAT credit recognised as an asset is reviewed at each Balance Sheet date and written down to the extent
+the aforesaid convincing evidence no longer exists.
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+VII Inventories
+Inventories consisting of raw and packing materials, other materials and consumables including R&D materials,
+work-in-progress, stock-in-trade and finished goods are stated at lower of cost and net realisable value. The cost
+is determined based on weighted average method, except in case of certain raw and packing materials specific
+identification method is applied and in respect of certain other materials and consumables FIFO method is applied.
+VIII Research and Development
+XVIII Operating Cycle
+The research and development cost is accounted in accordance with Accounting Standard (AS) 26 'Intangible
+Assets'. All related revenue expenditure incurred on original and planned investigation undertaken with the prospect
+of gaining new scientific or technical knowledge and understanding up to the time when it is possible to demonstrate
+probable future economic benefits, is recognised as research expenses and charged off to the Statement of
+Profit and Loss, as incurred. All subsequent expenditure incurred for product development on the application of
+research findings or other knowledge upon demonstration of probability of future economic benefits, prior to the
+commencement of production, to the extent identifiable and possible to segregate are accumulated and carried
+forward as development expenditure under Intangible assets under development, to be capitalised as an intangible
+asset on completion of the project. In case a project does not proceed as per expectations / plans, the same is
+abandoned and the amount classified as development expenditure under Intangible assets under development is
+charged off to the Statement of Profit and Loss.
+Foreign Currency Transactions
+Transactions denominated in foreign currencies are recorded at the exchange rate that approximates the actual
+rate prevailing at the date of the transaction. Monetary items denominated in foreign currency at the year end are
+translated at year end rates. Non monetary items which are carried in terms of historical cost denominated in foreign
+currency, are reported using the exchange rate at the date of transaction. In respect of forward exchange contracts
+relating to monetary items as at the balance sheet date, the difference between the year end rate and the rate on the
+date of the contract is recognised as exchange difference and the premium on such forward contracts is recognised
+over the life of the forward contract. The exchange differences arising on settlement / translation are recognised in
+the Statement of Profit and Loss.
+X
+Derivative Accounting:
+Derivative Instruments entered into for hedging the foreign currency fluctuation risk/interest rate risk are accounted
+for on the principles of prudence as enunciated in Accounting Standard (AS) 1 "Disclosure of Accounting Policies".
+Pursuant to this, losses, if any, on Mark to Market basis, are recognised in the Statement of Profit and Loss and gains are
+not recognised.
+XI
+Taxes on Income
+114 -
+Provision for tax comprises of Current Tax and Deferred Tax. Current Tax provision is made on the basis of reliefs
+and deductions available under the Income Tax Act, 1961. Deferred tax resulting from "timing differences"
+between taxable and accounting income is accounted for using the tax rates and laws that are enacted or
+substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward for
+timing differences only to the extent that there is a reasonable certainty that the assets can be realised in future.
+However, if there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if
+there is virtual certainty that there will be sufficient future taxable income available to realise the assets. Deferred
+tax assets are reviewed as at each Balance sheet date for their realisability.
+Minimum Alternate Tax ('MAT') under the provisions of the Income-tax Act, 1961 is recognised as current tax in
+the Statement of Profit and Loss. The credit available under the Income-tax Act, 1961 in respect of MAT paid is
+recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+SUN
+36.0
+26.8
+136.6
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+For Other Services
+Reimbursement of Expenses
+@includes 0.7 Million (Previous year ₹ 1.8 Million) in respect of
+previous year
+Provision for other-than-temporary diminution in value of non-current
+investment in an associate (* 16,380)
+Provision in respect of losses of a subsidiary
+SUN
+Miscellaneous Expenses
+Year ended
+31st March, 2016
+24.5
+0.6
+* in Million
+Year ended
+31st March, 2015
+48.0
+1.5
+0.1
+17.1
+0.0
+Less:
+111
+15.5
+22.9
+74.4
+Less: Adjusted out of Provision of earlier year
+(22.3)
+1,155.4
+(85.9)
+377.2
+Professional, Legal and Consultancy
+6,260.0
+(*) 8,256.6
+Donations
+49.0
+Loss on Sale/Write off of Fixed Assets (Net)
+82.3
+64.8
+(Decrease) / Increase of Excise Duty on Inventories
+138.4
+(14.1)
+Net Loss on Foreign Currency Transactions and Translation (other than
+considered as Finance Cost)
+2,145.8
+1,065.9
+[Includes exchange loss of 160.3 Million (Previous Year 252.6
+Million) in respect of Provision for losses of a subsidiary]
+Payments to Statutory Auditors (Net of input credit, where applicable)
+For Audit @
+306.4
+4.9
+122.9
+2,431.1
+Miscellaneous Expenses
+Loss on Sale/Write off of Fixed Assets (Net)
+Less:
+Net Interest Income [net of Interest expense on borrowings 1.6 Million
+(Previous year 1.1 Million)]
+Receipts from Research Activities
+Miscellaneous Income
+112
+2,608.6
+2,363.8
+Professional, Legal and Consultancy
+161.9
+165.3
+173.0
+2,746.5
+2,572.1
+93.5
+378.9
+96.9
+35.9
+32.9
+439.0
+177.0
+Communication
+Travelling and Conveyance
+Printing and Stationery
+3,726.4
+35,747.3
+36,835.9
+Receipts from Research Activities
+(1,271.7)
+(976.1)
+34,475.6
+35,859.8
+(*) Includes fees to the statutory auditors of erstwhile Ranbaxy
+Laboratories Limited as auditors - 27.0 Million
+NOTE: RESEARCH AND DEVELOPMENT EXPENDITURE
+INCLUDED IN THE STATEMENT OF PROFIT AND LOSS.
+Salaries and Wages
+Contribution to Provident and Other Funds
+Staff Welfare Expenses
+IX
+Consumption of Stores, Spare Parts and Others Material
+Conversion and Other Manufacturing Charges
+Power and Fuel
+Rent
+Rates and Taxes
+Insurance
+Repairs and Maintenance
+Buildings
+Machinery
+Others
+467.4
+Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their
+realisation in cash or cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of
+classifications of its assets and liabilities as current and non-current.
+14,805.1
+As at
+vii Equity Shares held by each shareholder holding more than 5 percent Equity Shares (previous year excluding Share Sus-
+pense Account) in the Company are as follows:
+As at
+31st March, 2016
+Name of Shareholders
+No. of % of Holding
+Shares held
+As at
+31st March, 2015
+No. of % of Holding
+Shares held
+Dilip Shantilal Shanghvi
+231,140,480
+9.6
+Refer Note 56 for number of employee stock options against which equity shares are to be issued by the Company
+/ ESOP Trust upon vesting and exercise of those stock options.
+231,140,480
+Viditi Investment Pvt. Ltd.
+201,385,320
+8.4
+201,385,320
+9.7
+Tejaskiran Pharmachem Industries Pvt. Ltd.
+195,343,760
+8.1
+195,343,760
+9.4
+11.2
+334,956,764 (Previous year Nil) Equity shares of ₹1 each have been allotted during the year pursuant to scheme
+of Amalgamation without payment being received in cash (Refer Note 48).
+1,035,581,955 (upto the end of previous year 1,035,581,955) Equity Shares of ₹1 each have been allotted as fully paid
+up bonus shares during the period of five years immediately preceding the date at which the Balance Sheet is prepared.
+vi
+No. of Shares
+in Million
+Shares allotted during the year pursuant to scheme of
+amalgamation (Refer Note 48)
+186,516
+0.2
+Add: Shares allotted to the ESOP Trust
+160,000
+0.1
+Less: Shares issued on exercise of employee stock
+options by ESOP Trust
+223,135
+0.2
+At the end of the period
+123,381
+0.1
+―117
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+iv
+V
+Family Investment Pvt. Ltd.
+in Million
+Quality Investments Pvt. Ltd.
+7.6
+Imported
+Indigenous
+Total
+in Million
+Year ended
+31st March, 2016
+Year ended
+31st March, 2015
+%
+17,014.2
+3,184.3
+20,198.5
+%
+Stores, Spare Parts and Other Materials
+18,814.0
+3,797.1
+22,611.1
+8,233.5
+11,965.0
+20,198.5
+46.29
+53.71
+10,466.6
+12,144.5
+100.00
+22,611.1
+21.46
+78.54
+100.00
+773.4
+2,830.4
+3,603.8
+22.57
+77.43
+100.00
+40.76
+59.24
+100.00
+Total
+Indigenous
+Imported
+182,927,440
+8.8
+7.6
+182,868,640
+8.8
+* in Million
+Year ended
+31st March, 2016
+Year ended
+31st March, 2015
+30 RESEARCH AND DEVELOPMENT EXPENDITURE
+Revenue (Excluding Depreciation) [net]
+Capital
+Total
+7,750.2
+543.7
+8,293.9
+7,310.1
+789.4
+8,099.5
+31 INFORMATION RELATING TO CONSUMPTION OF
+MATERIALS
+118
+Raw and Packing Materials
+Raw Materials
+Packing Materials
+Total
+None of the items individually account for more than 10% of total
+consumption.
+Imported and Indigenous
+Raw and Packing Materials
+182,927,440
+182,868,640
+in Million
+No. of Shares
+31st March, 2015
+Fine imposed for anti-competitive settlement agreement by European Commission
+Octroi demand on account of rate difference
+773.0
+689.1
+171.0
+171.0
+Other matters - employee/worker related cases, State electricity board, Punjab
+Land Preservation Act related matters etc.
+201.1
+237.4
+Future cash outflows in respect of the above matters are determinable only on receipt of
+judgements/decisions pending at various forums / authorities.
+116
+15.4
+CORPORATE OVERVIEW
+STATUTORY REPORTS
+06 - 84
+NOTES
+119.8
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Legal Proceedings
+The Company and/or its subsidiaries are involved in various legal proceedings including
+product liability, contracts, employment claims and other regulatory matters relating to
+conduct of its business. The Company carries product liability insurance / is contractually
+indemnified by the manufacturer, for an amount it believes is sufficient for its needs. In
+respect of other claims, the Company believes, these claims do not constitute material
+litigation matters and with its meritorious defences the ultimate disposition of these
+matters will not have material adverse effect on its Financial Statements.
+Others:
+FINANCIAL STATEMENTS
+85 - 206
+* in Million
+As at
+As at 31st March,
+02 - 05
+15.4
+Demand by JDGFT import duty with respect to import alleged to be in excess of
+entitlement as per the Advanced License Scheme
+3,248.0
+As at 31st March,
+31st March, 2016
+2015
+i
+28 A Contingent Liabilities and Commitments (to the extent not provided for)
+Contingent Liabilities
+a
+Claims against the Company not acknowledged as debts
+b
+Liabilities Disputed - Appeals filed with respect to :
+Income Tax on account of Disallowances / Additions
+Sales Tax on account of Rebate / Classification
+19,026.8
+38.8
+36.6
+26.0
+11,087.7
+Excise Duty on account of Valuation / Cenvat Credit
+ESIC Contribution on account of applicability
+1,016.1
+37.9
+164.5
+0.2
+Service tax on certain services performed outside India under reverse charge basis
+Drug Price Equalisation Account [DPEA] on account of demand towards
+unintended benefit, enjoyed by the Company
+0.2
+156.0
+3,326.4
+31st March, 2016
+Equity shares of * 1 each
+2015
+Trade commitments
+The Equity Shares of the Company, having par value of 1 per share, rank pari passu in all respects including voting rights and
+entitlement to dividend.
+ii
+Reconciliation of the number of shares and amount outstanding at the beginning and at the end of reporting period
+(previous year excluding share suspense account)
+Year ended
+31st March, 2016
+Equity shares of * 1 each
+Opening Balance
+Add: Shares allotted during the year pursuant to the
+scheme of Amalgamation (Refer Note 48)
+No. of Shares
+2,071,163,910
+334,770,248
+* in Million
+2,071.2
+334.8
+Year ended
+31st March, 2015
+No. of Shares
+2,071,163,910
+Rights, Preferences and Restrictions attached to Equity Shares
+* in Million
+2,071.2
+670,960
+0.6
+iii
+Closing Balance
+2,406,605,118
+2,406.6 2,071,163,910
+2,071.2
+The movement of shares issued to ESOP Trust at Face value is as follows: (previous year excluding share suspense
+account):
+As at
+31st March, 2016
+As at
+Add: Shares allotted to employees on exercise of
+employee stock options (excluding shares held by
+ESOP trust (Refer Note 29 iii))
+i
+29 DISCLOSURES RELATING TO SHARE CAPITAL
+1,020.5
+ii
+Letter of comfort on behalf of subsidiaries, to the extent of limits
+Commitments
+530.6
+2,873.1
+a
+Estimated amount of contracts remaining to be executed on capital account
+[net of advances].
+3,098.8
+2,535.8
+b
+Uncalled liability on partly paid investments
+C
+Derivative related Commitments - Forward Foreign Exchange Contracts
+(Refer Note 59)
+0.5
+7,951.2
+0.5
+11,250.0
+OBC
+d
+Non cancellable lease commitments (Refer Note 42)
+C Letters of Credit for Imports
+Guarantees given by the bankers on behalf of the Company
+80.4
+502.1
+161.7
+435.9
+740.2
+C
+Sundry Balances / Trade Receivables written off (Net)
+3,454.9
+70.2
+5,758.1
+Provision for Doubtful Trade Receivables / Advances
+1,057.9
+388.7
+Interest Income on:
+21 OTHER INCOME
+Other Operating Revenues
+Sale of Products
+20 REVENUE FROM OPERATIONS
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+Provision/Write off for Doubtful Trade Receivables / Advances
+SUN
+2,511.3
+1,978.2
+89.3
+34.4
+34.4
+7.4
+Others
+Fixed Assets held for sale
+1,500.3
+1,936.4
+Export Incentives receivable
+772.9
+Receivable towards forward contracts / derivative instruments
+114.4
+109
+402.4
+318.1
+4,346.6
+Machinery
+Others
+Printing and Stationery
+377.7
+518.6
+739.0
+556.5
+416.2
+380.4
+3,883.0
+3,788.4
+441.4
+528.3
+199.2
+193.8
+907.7
+861.8
+900.0
+2,006.9
+950.4
+2,006.0
+164.7
+176.1
+Travelling and Conveyance
+Overseas Travel and Export Promotion
+Communication
+535.6
+605.4
+5,127.8
+151.5
+Less: Provision for Doubtful Interest Accured and due on loans
+114.4
+151.5
+4.5
+Considered Doubtful
+481.7
+200.9
+Unsecured Considered Good
+13.6
+4.6
+Secured Considered Good
+Loans and Advances to Employees / Others
+238.4
+274.0
+512.0
+Less: Provision for Doubtful Loans and Advances
+512.4
+512.0
+274.0
+512.0
+Considered Doubtful
+238.4
+(Unsecured - Considered Good unless stated otherwise)
+Loans and Advances to a Related Party (Refer Note 44)
+Considered Good
+18 SHORT-TERM LOANS AND ADVANCES
+As at
+31st March, 2015
+As at
+31st March, 2016
+in Million
+FINANCIAL STATEMENTS
+85 - 206
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+STATUTORY REPORTS
+06 - 84
+02 - 05
+4.5
+Buildings
+210.0
+Less: Provision for Doubtful Loans and Advances
+151.5
+Considered Doubtful
+114.4
+Considered Good
+(Unsecured - Considered Good unless stated otherwise)
+Interest Accrued and due on loans (Refer Note 44)
+19 OTHER CURRENT ASSETS
+925.9
+6,966.9
+185.1
+1,178.5
+7,450.3
+184.2
+Less: Provision for Doubtful Loans and Advances
+1,111.0
+1,362.7
+925.9
+185.1
+1,178.5
+184.2
+Considered Doubtful
+Unsecured
+Advances for Supply of Goods and Services
+4,530.7
+60.6
+Balances with Government Authorities
+Security Deposits
+716.0
+238.0
+Prepaid Expenses
+495.3
+4.5
+205.5
+4.5
+499.8
+CORPORATE OVERVIEW
+Repairs and maintenance
+Selling and Distribution
+184.6
+172.0
+Long-term Investments - Subsidiary
+3,242.2
+Long-term Investments - Others
+Sundry Balances Written Back (Net)
+Insurance Claims
+Lease Rental and Hire Charges
+Miscellaneous Income
+3,426.8
+816.9
+988.9
+50.0
+Current Investments
+31.4
+182.6
+170.3
+1.7
+102.5
+4,318.2
+2,115.8
+22 COST OF MATERIALS CONSUMED (REFER NOTE 31)
+Raw and Packing Materials:
+Inventories at the beginning of the year
+Pursuant to the Scheme of Amalgamation (Refer Note 48)
+Purchases during the year
+Inventories at the end of the year
+9,889.1
+4.1
+Net Gain on Sale of:
+0.2
+0.2
+Year ended
+31st March, 2016
+72,624.6
+4,824.3
+77,448.9
+125.5
+11.8
+11.6
+* in Million
+Year ended
+31st March, 2015
+78,824.7
+340.0
+302.7
+2,862.7
+81,687.4
+Current Investments
+Long-term Investments
+Others
+42.5
+82.3
+231.2
+164.6
+849.8
+Dividend Income on Long-term Investments in
+Subsidiary
+394.3
+Others
+0.2
+394.5
+5,116.4
+5,653.1
+18,860.8
+21,730.7
+912.6
+896.1
+779.9
+2,675.0
+14,876.5
+25 FINANCE COSTS
+Interest Expense
+2,932.3
+2,940.0
+Other borrowing costs
+42.9
+48.7
+Net loss on foreign currency transactions and translation
+2,331.2
+2,523.8
+5,306.4
+5,512.5
+26 OTHER EXPENSES
+Consumption of Stores, Spare Parts and Other Materials
+3,603.8
+3,454.9
+Conversion and Other Manufacturing Charges
+2,017.6
+1,930.4
+Power and Fuel
+3,704.8
+3,825.2
+Rent
+Rates and Taxes
+Insurance
+205.0
+Commission and Discount
+974.1
+12,661.4
+1,132.3
+98.8
+(8,551.4)
+(9,889.1)
+20,198.5
+22,611.1
+23 CHANGES IN INVENTORIES OF FINISHED GOODS,
+WORK-IN-PROGRESS AND STOCK-IN-TRADE
+Inventories at the beginning of the year
+11,698.6
+3,679.1
+Pursuant to the Scheme of Amalgamation (Refer Note 48)
+Inventories at the end of the year
+11,200.5
+(12,383.4)
+(11,698.6)
+(684.8)
+3,181.0
+110
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+24 EMPLOYEE BENEFITS EXPENSE
+Salaries and Wages
+Contribution to Provident and Other Funds
+Expense on Employee Stock Option Schemes
+Staff Welfare Expenses
+FINANCIAL STATEMENTS
+85 - 206
+* in Million
+Year ended
+31st March, 2016
+Year ended
+31st March, 2015
+12,801.3
+Loans and Advances
+Deposits with Banks
+Expected return on plan assets
+Central government securities
+N.A.
+21%
+1%
+N.A.
+22%
+2%
+plan assets are as under
+State government securities
+12%
+N.A.
+16%
+1%
+Bonds and securities of public
+N.A.
+53%
+N.A.
+9%
+assets as a percentage of total
+58 and 60
+20.91 26.72
+working life of employees (years)
+Mortality
+Indian Assured Lives Mortality (2006-08)
+Indian Assured Lives Mortality (2006-08)
+Withdrawal
+N.A.
+15% - 18%
+The major categories of plan
+8% - 18%
+Ultimate
+15% - 18%
+3% - 18%
+Retirement Age (years)
+N.A.
+58 and 60
+58 and 60
+58 and 60
+N.A.
+N.A.
+60%
+14%
+31st March,
+2016
+31st March,
+2015
+31st March,
+31st March,
+31st March,
+2014
+2013
+Year ended
+2012
+181.1
+45.2
+20.2
+25.2
+(6.8)
+2,169.1
+(1,728.0)
+441.1
+3.6
+1,792.3
+(1,569.3)
+223.0
+120.9
+* in Million
+Net liability/(asset) in the Balance Sheet
+Fair value of plan assets
+sector/financial institutions
+Insurer managed funds (Funded
+N.A.
+89%
+N.A.
+83%
+with LIC, break-up not available)
+Surplus fund lying uninvested
+N.A.
+14%
+1%
+N.A.
+2%
+The estimates of future salary increases, considered in the actuarial valuation, take into account inflation, seniority,
+promotion and other relevant factors such as supply and demand in the employment market.
+Experience adjustment (Gratuity)
+On plan liabilities
+On plan assets
+Present value of commitments
+N.A. 20.91 - 26.72
+0.1
+305.7
+17.52 - 26.72
+Expected average remaining
+31st March, 2016
+Finished
+Goods
+Stock in
+Trade
+As at
+31st March, 2015
+As at
+in Million
+78,824.7
+Work-in-
+Progress
+23.5
+72,624.6
+649.7
+13,278.0
+60,516.0
+58,696.9
+9,342.2
+11,700.0
+18,285.2
+7.4
+Stock in
+Trade
+Work-in-
+Others*
+Royalty
+Interest and Dividend
+Exports (FOB basis)
+Income
+35 INCOME/EXPENDITURE IN FOREIGN CURRENCY
+31st March, 2015
+Finished
+Year ended
+Year ended
+31st March, 2016
+2,543.2 1,527.8
+1,648.0 4,591.1
+4,191.2 6,118.9
+1,269.7
+118.8
+1,388.5
+3,388.5 2,030.8
+2,232.6 4,291.2
+5,621.1 6,322.0
+387.3
+53.0
+440.3
+Progress
+Goods
+in Million
+55.5
+8,429.8
+905.0
+2,366.9
+In range of
+7.54% to 7.56%
+N.A.
+9% to 9.03%
+In range of
+7.94% to 9.00%
+Expected rate of salary increase
+N.A.
+Interest rate guarantee
+CORPORATE OVERVIEW
+N.A.
+10.00%
+N.A.
+N.A.
+N.A.
+N.A.
+8.75%
+8.00%
+N.A.
+N.A.
+8.80%
+02 - 05
+STATUTORY REPORTS
+06 - 84
+NOTES
+9,277.6
+Bulk Drugs
+Total
+Formulations
+34 INFORMATION RELATING TO INVENTORIES
+OF FINISHED GOODS, WORK-IN-PROGRESS
+AND STOCK-IN-TRADE
+Bulk Drugs
+Others
+Total
+Formulations
+33 INFORMATION RELATING TO SALE OF PRODUCTS
+Total
+Others
+Bulk Drugs
+Formulations
+32 INFORMATION RELATING TO PURCHASES OF STOCK-
+IN-TRADE
+Year ended
+31st March, 2015
+Year ended
+31st March, 2016
+in Million
+FINANCIAL STATEMENTS
+85 - 206
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+N.A. 20.91 - 26.72
+Expenditure
+4.7
+256.9
+326.8
+663.5
+663.5
+663.5
+274.0
+600.8
+274.0
+326.8
+45 Consequent to the amalgamation of erstwhile RLL into the Company as referred in Note 48, Zenotech Laboratories
+Limited ('Zenotech') had become an associate of the Company. The erstwhile RLL had granted certain loans to
+Zenotech which were outstanding and inherited by the Company. The Company has not granted any further loans to
+Zenotech post effective date of amalgamation i.e. 24th March, 2015. The balance of this inherited outstanding loan is
+512.0 Million. The Company is in process of evaluating various options in relation to recovery of the outstanding loans
+and interest thereon of 151.5 Million (Previous year 88.8 Million). During the year, Zenotech's reference to the Board
+for Industrial and Financial Reconstruction (BIFR) had already been registered as case no. 115/2015 under Section
+15(1) of Sick Industrial Companies (Special Provisions) Act, 1985.
+600.8
+46 Intangible assets consisting of trademarks, designs, technical knowhow, non compete fees and other intangible
+assets are stated at cost of acquisition based on their agreements and are available to the Company in perpetuity. The
+amortisable amount of intangible assets is arrived at based on the management's best estimates of useful lives of such
+assets after due consideration as regards their expected usage, the product life cycles, technical and technological
+obsolescence, market demand for products, competition and their expected future benefits to the Company.
+125
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+47 Exceptional item for the year represents charge on account of imparment of fixed assets. This charge has arisen on
+account of the integration and optimization exercise being carried out for certain manufacturing facilities.
+48 Pursuant to the Scheme of Arrangement u/s 391 to 394 of the Companies Act 1956 for amalgamation of erstwhile RLL
+with the Company as sanctioned by the Hon'ble High Court of Gujarat and Hon'ble High Court of Punjab and Haryana
+on 24th March, 2015 (effective date) all the assets, liabilities and reserves of erstwhile RLL were transferred to and
+vested in the Company with effect from 1st April, 2014, the appointed date. Erstwhile RLL along with its subsidiaries
+and associates was operating as an integrated international pharmaceutical organisation with business encompassing
+the entire value chain in the production, marketing and distribution of pharmaceutical products. The scheme was
+accordingly been given effect to in the financial statements for the year ended 31st March, 2015.
+663.5
+4.4
+(in Million)
+Maximum
+Balance
+2014-15
+* includes interest accrued on loans amounting to 151.5 Million (Previous Year * 88.8 Million)
+These loans have been granted to the above entities for the purpose of their business.
+4.4
+4.4
+4.4
+4.4
+30.4
+-
+0.4
+0.4
+148.6
+25.6
+25.6
+314.5
+9,642.7
+161.4
+356.0
+The amalgamation was accounted for under the "Pooling of Interest Method" as prescribed under Accounting Standard
+14- "Accounting for Amalgamations" (AS 14) as specified under section 133 of the Companies Act 2013. Accordingly
+and giving effect in compliance of the Scheme of Arrangement all the assets, liabilities and reserves of erstwhile RLL
+were recorded in the books of the Company at their carrying amounts and in the same form as at the appointed date in
+the books of erstwhile RLL.
+On 10th April, 2015, in terms of the Scheme of Arrangement 0.80 equity share of ₹1 each (Number of Shares
+334,956,764 including 186,516 Shares held by ESOP trust) of the Company has been allotted to the shareholders of
+erstwhile RLL for every 1 share of ₹5 each (Number of Shares 418,695,955 including 233,146 shares held by ESOP
+trust) held by them in the share capital of erstwhile RLL, after cancellation of 6,967,542 shares of erstwhile RLL. These
+shares were considered for the purpose of calculation of earnings per share appropriately. An amount of 1,792.4
+Million being the excess of share capital of erstwhile RLL over the amount recorded as the share capital (which was
+outstanding to be issued by the Company as on 31st March, 2015 and disclosed as Share Suspense Account) was
+credited to Capital Reserve.
+49 Erstwhile RLL had early adopted Accounting Standard (AS) 30 "Financial Instruments: Recognition and Measurement"
+and AS 31 "Financial Instruments: Presentation" for accounting of derivative instruments which are outside the scope
+of Accounting Standard 11 "The Effects of Changes in Foreign Exchange Rates" such as forward contracts to hedge
+highly probable forecast transactions, option contracts, currency swaps, interest rate swaps etc. In order to align with
+the Company's accounting policy, derivative instruments were accounted for in accordance with the announcement
+issued by the Institute of Chartered Accountants of India dated 28th March, 2008. On the principles of prudence as
+enunciated in Accounting Standard 1 "Disclosure of Accounting Policies" which requires to provide losses in respect of
+all outstanding derivative instruments at the balance sheet date by marking them to market. Accordingly, the unrealised
+MTM gain of 905.4 Million as at 1st April, 2014 was reversed in the financial statements for the year ended
+31st March, 2015.
+56 EMPLOYEE SHARE-BASED PAYMENT PLANS
+(a) Erstwhile RLL had Employee Stock Option Schemes ("ESOSs") namely, Employees Stock Option Scheme -||
+(ESOS-II), Employees Stock Option Scheme 2005 (ESOS 2005) and Employees Stock Option Plan 2011
+(ESOP 2011) for the grant of stock options to the eligible employees and Directors of the Erstwhile RLL and
+its subsidiaries. ESOS-II had been discontinued from 17th January, 2015. The ESOSS is administered by the
+Compensation Committee ("Committee"). Options are granted at the discretion of the Committee to selected
+employees depending upon certain criterion. Each option comprises one underlying equity share.
+ESOS 2005 provided that the grant price of options would be the latest available closing price on the stock
+exchange on which the shares of the erstwhile RLL were listed, prior to the date of the meeting of the Committee in
+which the options were granted. If the shares are listed on more than one stock exchange, then the stock exchange
+where there is highest trading volume on the said date shall be considered. The options vested evenly over a
+period of five years from the date of grant. Options lapse, if they are not exercised prior to the expiry date, which
+was ten years from the date of grant.
+ESOP 2011 provided that the grant price of options would be the face value of the equity share i.e. * 5 per share.
+The options vested evenly over a period of three years from the date of grant. Options lapse, if they were not
+exercised prior to the expiry date, which was three months from the date of the vesting. An ESOP Trust had been
+formed to administer ESOP 2011. Shares issued to the ESOP Trust were allocated to the eligible employees upon
+excercise of stock options from time to time. As per the Guidance Note on Accounting for Employee Share based
+Payments issued by the Institute of Chartered Accountants of India, the shares issued to an ESOP Trust but yet
+to be allocated to the employees as on the reporting date have been deducted from the Share Capital with a
+corresponding adjustment to the loan receivable from ESOP Trust. Accordingly, the Company has adjusted shares
+held by the ESOP Trust on the reporting date from the Share Capital / Share Suspense Account.
+The Shareholders' Committee of Erstwhile RLL had approved issuance of options under the ESOS's as per details
+given below:
+128
+Date of approval
+55 In the absence of net profits in the Company for the previous year ended 31st March, 2015, remuneration to the
+Managing Director and a Whole-time Director of the Company for the previous year ended 31st March, 2015 was
+in excess of the limits specified under Schedule V to the Companies Act, 2013 by 20.7 Million. In this regard the
+Company had made necessary applications to the Central Government of India for approving of the amounts of
+maximum remuneration payable, which includes the excess amounts already paid / provided. During the year, the
+Company has received a letter from the Central Government of India approving the remuneration of * 6.0 Million
+per annum each to the Managing Director and each of Whole-time Directors of the Company for the three years
+ending 31st March, 2017, which is lower than the limits of maximum remuneration prescribed under Schedule V to
+the Companies Act, 2013, and in respect of which, the Company has made further representations to the Central
+Government of India. The response in respect of the foregoing is awaited from the Central Government of India. For the
+current year, the remuneration paid is within the limits prescribed under Schedule V to the Companies Act, 2013. On
+receipt of the approval from the Central Government of India, the balance amount of remuneration for the current year,
+as per their entitlement, shall be paid to the Managing Director and a Whole-time Director, as applicable, and the same
+shall be given effect to in the year in which the approval is received.
+25 June 2003
+Scheme
+ESOS - II
+Original No. of options approved
+4,000,000
+ESOS 2005
+4,000,000
+ESOP 2011
+3,000,000
+30 June 2005
+09 May 2011
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+50 Out of a MAT credit entitlement of 8,222.7 Million which was written down by the erstwhile RLL during the quarter
+ended 31st December 2014, an amount of ₹7,517.0 Million was recognized by the Company in the year ended
+31st March, 2015, on a reassessment by the Management, based on convincing evidence that the combined
+amalgamated entity would pay normal income tax during the specified period and would therefore be able to utilize the
+MAT credit entitlement so recognised.
+51 Pursuant to the Scheme of Amalgamation u/s 391 to 394 of the Companies Act, 1956 and u/s 52 of the Companies
+Act, 2013 for amalgamation of erstwhile Sun Pharma Global Inc. (Transferor Company) with the Company, with effect
+from 1st January, 2015 (appointed date), as sanctioned by the Hon'ble High Court of Gujarat, filed with the Registrar of
+Companies on 6th August, 2015 (effective date), all the assets, liabilities, reserves and surplus of Transferor Company
+were transferred to and vested in the Company without any consideration, on going concern basis. Transferor Company
+was a wholly owned subsidiary of the company and was engaged in the business activities of strategic and non-stra-
+tegic investments and financing mainly to its group subsidiary or associate companies worldwide. The amalgamation
+was accounted for under the "Pooling of Interest Method" as prescribed under Accounting Standard 14- "Accounting
+for Amalgamations" (AS 14) specified under section 133 of the Companies Act, 2013. The scheme was given effect to
+126
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+in the financial statements for the year ended 31st March, 2015 and accordingly all the assets, liabilities, reserves and
+surplus of Transferor Company were recorded in the books of the Company at their carrying amounts and in the same
+form as at the appointed date in the books of the Transferor Company. Transferor Company being a wholly owned sub-
+sidiary of the Company neither any shares were required to be issued nor any consideration was paid. The Equity Share
+Capital, Preference Share Capital, Share application money pending allotment and securities premium account of the
+Transferor Company and the carrying value of investment in Equity Shares, Preference Shares and Share application
+money of the Transferor Company in the books of the Transferee Company stood cancelled. Accordingly the difference
+of 6,498.8 Million between the amount of share capital of the Transferor Company and the consideration being Nil,
+after adjusting for the carrying value of Investments in the books of the Company, was credited to Capital Reserve.
+52 With regard to tangible assets, the Company has adopted the useful life of fixed assets as indicated in Part C of
+Schedule II of the Companies Act, 2013 and amendment thereto vide notification dated 29th August, 2014 issued by
+the Ministry of Corporate Affairs. Pursuant to the transition provisions prescribed in Schedule II to the Companies Act,
+2013, the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to
+be Nil as on 1st April, 2014, were fully depreciated and an amount of 491.8 Million was charged to the Statement of
+Profit and Loss for the year ended 31st March, 2015.
+53 Since the US-FDA import alert on cephalosporin product manufactured at Karkhadi facility in March 2014, the
+Company remained fully committed to implement all corrective measures to address the observations made by the
+US-FDA with the help of third party consultant. Substantial progress has been made at the Karkhadi facility in terms of
+completing the action items to address the observations made by the US-FDA in its warning letter issued in May 2014.
+The Company is continuing to work closely and co-operatively with the US-FDA to resolve the matter. The contribution
+of this facility to Company's revenues is not significant.
+54 (a) The US-FDA, on 23rd January, 2014, had prohibited using API manufactured at Toansa facility for manufacture of
+finished drug products intended for distribution in the U.S. market. Consequentially, the Toansa manufacturing
+facility was subject to certain terms of the consent decree of permanent injunction entered into by the Company in
+January 2012. In addition, the Department of Justice of the USA ('US DOJ'), United States Attorney's Office for the
+District of New Jersey had also issued an administrative subpoena dated 13th March, 2014 seeking information
+primarily related to Toansa manufacturing facility for which a Form 483 containing findings of the US-FDA was
+issued in January 2014. The Company is continuing to fully cooperate and is in dialogue with the US DOJ, and
+continuing to provide requisite information.
+(b) In December 2015, the US-FDA issued warning letter to the Company with respect to its manufacturing facility at
+Halol. The Company remains fully committed to implement all corrective measures to address the observations
+made by the US-FDA with the help of third party consultant. The Company is providing regular updates to US-FDA
+on the progress of the corrective actions committed in the response to warning letter. The Company is continuing
+to manufacture and distribute products to the U.S from Halol facility and at the same time working closely and co-
+operatively with the US-FDA to resolve the matter.
+127
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+As at 31st
+March, 2015
+6.4
+Maximum
+Balance
+2015-16
+FINANCIAL STATEMENTS
+85 - 206
+# Pursuant to the scheme of amalgamation (Refer Note 48)
+31st March, 2016
+Pension plan Provident
+fund
+* in Million
+31st March, 2015
+Pension plan Provident
+fund
+(70.8)
+Excess of obligation over plan assets / (plan assets over obligation)
+4.9
+930.7
+(7.9)
+(4,598.6)
+4,632.8
+974.8
+(127.9)
+(4,810.2)
+4,806.5
+930.7
+(34.2)
+(23.5)
+974.8
+Fair value of plan assets
+On plan assets
+299.2
+(248.2)
+57.5
+(249.3)
+7.6
+(333.4)
+(34.2)
+The contribution expected to be made by the Company for gratuity, during financial year ending 31st March, 2017 is
+314.1 Million (Previous Year 177.2 Million).
+123
+Present value of benefit obligation
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+In respect of Pension fund and Provident fund:
+Experience adjustment
+On plan liabilities
+PHARMA
+3.7
+In respect of the erstwhile Ranbaxy Laboratories Limited (erstwhile RLL), the Company has recognised an expense of 68.2
+Million (Previous year 16.8 Million) pertaining to portion of employers' contribution paid to the statutory authorities, which
+is included in "Employee benefits expense".
+42 ACCOUNTING STANDARD (AS-19) ON LEASES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+44 LOANS / ADVANCES GIVEN TO SUBSIDIARIES AND
+AN ASSOCIATES
+(a) Loans / Advances outstanding from Subsidiaries
+Green Eco Development Centre Ltd
+Skisen Labs Private Limited
+Neetnav Real Estate Private Limited
+Ranbaxy Drugs Limited
+NOTES
+Ranbaxy (Netherlands) BV
+Sun Pharma De Mexico, S.A. DE C.V.
+Note: includes interest accrued on loans
+(b) Loans / Advances outstanding from an Associate
+Loans
+Interest bearing with specified payment schedule:
+Zenotech Laboratories Limited, India
+Considered good
+Considered doubtful
+Less: Provision for doubtful loans / advances
+Advances: Share Application Money to
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+(a) The Company has given certain premises and Plant and Machinery under operating lease or leave and license
+agreements. These are generally not non-cancellable and periods range between 11 months to 10 years under leave
+and license/lease and are renewable by mutual consent on mutually agreeable terms. The Company has received
+refundable interest free security deposits where applicable in accordance with the agreed terms. (b) The Company
+has obtained certain premises for its business operations (including furniture and fittings, therein as applicable) under
+operating lease or leave and license agreements. These are generally not non-cancellable and periods range between
+11 months to 10 years under leave and license, or longer for other lease and are renewable by mutual consent on
+mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the
+agreed terms. (c) Lease receipts / payments are recognised in the Statement of Profit and Loss under "Lease Rental
+and Hire Charges" & "Rent" in Note 21 and 26 respectively. (d) The future minimum lease payments in respect of assets
+taken on non cancellable operating leases are as under
+||
+!
+Not later than one year
+Later than one year and not later than five years
+in Million
+31st March, 2016
+31st March, 2015
+62.2
+18.2
+64.0
+91.4
+6.3
+80.4
+161.7
+iii Later than five years
+Total
+43 Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with
+Schedule VII thereof: 116.5 Million (Previous Year 46.7 Million).
+124
+As at 31st
+March, 2016
+Raw Materials (CIF basis)
+Packing Materials (CIF basis)
+Capital Goods (CIF basis)
+4,598.6
+930.7
+Commitments as at the year end
+316.0
+(32.8)
+Actuarial loss (gain)
+(126.0)
+2,169.1
+(614.8)
+(244.7)
+120.1
+480.0
+82.1
+139.5
+347.6
+(588.1)
+(87.9)
+(86.0)
+Benefits paid
+21.7
+974.8
+225.2
+1,792.3
+4,598.6
+Present value of commitments (as per Actuarial Valuation)
+Fair value of plan assets
+Reconciliation of liability / (asset) recognised in the Balance sheet
+(Funded)
+(Funded)
+Gratuity
+(Funded)
+31st March, 2015
+2.8
+4,810.2
+Year ended
+Provident
+Gratuity
+(Funded)
+Fund
+Provident
+31st March, 2016
+Year ended
+in Million
+Fund
+76.6
+Interest cost
+412.1
+178.1
+103.8
+476.4
+43.8
+Expense charged to the Statement of Profit
+and Loss
+34.2
+Excess of planned assets over commitments
+not recognised in the Balance Sheet #
+330.6
+Gratuity
+(Funded)
+Fund
+(Unfunded)
+Gratuity
+(Funded)
+Provident
+Pension
+Provident
+Fund
+(Funded)
+(Unfunded)
+Fund
+Fund
+(Funded)
+Reconciliation of defined-benefit
+commitments
+Commitments as at the beginning of the year
+Employees' Contributions during the year
+117.2
+180.8
+166.0
+Current service cost
+16.0
+68.5
+28.9
+Commitments transferred
+(Refer Note 48)
+305.7
+1,134.1
+4,280.8
+957.0
+Pursuant to the Scheme of Amalgamation
+1,792.3
+4,810.2
+974.8
+Excess of planned assets over commitments not recognised in the
+Balance Sheet #
+Pension
+(4,632.8)
+34.2
+4,810.2
+(4,806.5)
+CORPORATE OVERVIEW
+122-
+is unrecognised.
+# Represents increase in surplus, which in the absence of any right to claim the surplus as refund or expected reduction in future contribution to the plan,
+3.6
+1,569.3
+4,806.5
+(29.0)
+02 - 05
+(126.0)
+(244.7)
+6.8
+1,728.0
+(588.1)
+(7.9)
+4,632.8
+Plan assets as at the year end
+Actuarial gain/(loss)
+Benefits paid
+412.1
+Employees' Contributions during the year
+(614.8)
+43.4
+STATUTORY REPORTS
+06 - 84
+NOTES
+In range of
+7.80% to 7.94%
+7.80%
+Gratuity
+(Funded)
+Year ended
+31st March, 2015
+Provident
+Fund
+(Funded)
+Pension
+Fund
+(Unfunded)
+7.80%
+In range of
+7.54% to 7.56%
+FINANCIAL STATEMENTS
+85 - 206
+7.54%
+Provident
+Fund
+(Funded)
+Pension
+Fund
+(Unfunded)
+7.54%
+Discount rate
+Year ended
+31st March, 2016
+The actuarial calculations used to estimate commitments and expenses in respect of pension fund, provident fund and
+gratuity as applicable are based on the following assumptions which if changed, would affect the commitment's size,
+funding requirements and expense:
+Actuarial assumptions:
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Gratuity
+(Funded)
+174.4
+258.3
+Employer's Contributions during the year
+3.6
+(29.0)
+(6.8)
+(7.9)
+Actuarial gain/(loss)
+128.3
+395.8
+Actual return on plan assets
+138.3
+Expected return on plan assets
+Return on plan assets
+223.0
+3.7
+441.1
+Net liability/(asset) in the Balance sheet
+1,792.3
+(1,569.3)
+393.4
+385.5
+131.5
+366.8
+128.3
+395.8
+138.3
+393.4
+Expected return on plan assets
+68.5
+28.9
+Plan assets transferred
+1,271.8
+4,399.5
+Pursuant to the Scheme of Amalgamation (Refer Note 48)
+248.2
+1,569.3
+4,806.5
+Plan assets as at the beginning of the year
+Reconciliation of plan assets
+131.9
+2,169.1
+(1,728.0)
+31st March, 2015
+Year ended
+31st March, 2016
+38 RELATED PARTY DISCLOSURES (AS-18) - AS PER ANNEXURE 'A'
+The amount of further interest due and payable even in the succeeding year,
+until such date when the interest dues as above are actually paid
+vi.
+The amount of interest accrued and remaining unpaid at the end of the
+accounting year
+V.
+The amount of interest due and payable for the year
+iv.
+39 ACCOUNTING STANDARD (AS-20) ON EARNINGS PER SHARE
+Loss for the year (in Million)- used as Numerator for calculating Earnings per share
+Weighted Average number of Shares used in computing Basic Earnings Per Share
+(taking into account Equity Shares with respect to Share Suspense Account in the
+previous year)
+The amount of interest paid along with the amounts of the payment made to the
+supplier beyond the appointed day
+Interest due thereon remaining unpaid to any supplier as at the end of the
+accounting year
+ii.
+i. Principal amount remaining unpaid to any supplier as at the end of the
+accounting year
+94.0
+(interest Nil)
+As at
+31st March, 2016
+in Million
+31st March, 2016
+87.4
+(interest Nil)
+iii.
+As at
+Year ended
+31st March, 2016
+2,406,379,179
+Since the Company has loss for the year and in the previous year, the impact of employee stock option is anti dilutive.
+Therefore the basic and diluted earnings per share are the same.
+(6.1)
+(4.5)
+Diluted Earnings Per Share (in *)
+(6.1)
+(4.5)
+Basic Earnings Per Share (in)
+(10,733.6)
+1
+1,193,174
+2,406,129,594
+2,407,438,909
+Weighted Average number of Shares used in computing Diluted Earnings Per Share
+Nominal Value Per Share (in )
+1,059,730
+Add: Dilution effect of Employee Stock Options
+(14,741.3)
+2,404,936,420
+Year ended
+31st March, 2015
+1
+37 DISCLOSURES UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006:
+The information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the
+basis of information available with the Company. This has been relied upon by the auditors.
+36 The net Exchange Loss of 4,665.0 Million (Previous Year 3,861.1 Million) is included in Revenue from Operations,
+Cost of Materials Consumed, Finance Costs and Other Expenses in the Statement of Profit and Loss, as applicable.
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+592.2
+6,323.2
+5,884.6
+1,752.5
+1,775.3
+541.6
+429.7
+1,510.9
+176.4
+39,571.7
+394.3
+Others
+Royalty
+Interest
+Overseas Travel
+Professional, Legal and Consultancy Charges
+Spares and Components (CIF basis)
+46,235.0
+2,012.2
+3,636.6
+393.2
+4,761.8
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+119
+* Includes sale of product rights and brands, services charges, processing charges and freight & insurance recoveries
+7,526.3
+7,279.5
+224.0
+67.7
+801.6
+531.7
+50.3
+59.7
+4,732.2
+758.4
+40 ACCOUNTING STANDARD (AS-17) ON SEGMENT REPORTING
+(a)
+Primary Segment
+The Company has identified "Pharmaceuticals" as the only primary reportable
+business segment.
+(b) Secondary Segment (by Geographical Segment)
+Actuarial loss/(gain)
+82.1
+166.0
+139.5
+347.6
+(393.4)
+Expected return on plan assets
+76.6
+Interest cost
+(32.8)
+Current service cost
+Expense recognised in the Statement of
+(Unfunded)
+Pension
+Fund
+Gratuity
+(Funded)
+Provident
+Fund
+(Funded)
+Pension
+Fund
+(Unfunded)
+Gratuity
+(Funded)
+8.80%
+7.9
+(138.3)
+309.2
+180.8
+480.0
+(395.8)
+Year ended
+in Million
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+- 121
+(assets) of earlier years
+(118.7)
+117.2
+120.1
+(128.3)
+221.6
+31.8
+N!
+3.7
+Recognition of unrecognized liabilities/
+21.7
+in Million
+N.A.
+Year ended
+31st March, 2015
+Category of Plan Assets: The Company's Plan Assets in respect of Gratuity are funded through the Group Scheme of
+the LIC of India except for certain employees for whom contribution is made to a fund administered under Trust.
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+120
+In view of the interwoven/intermix nature of business and manufacturing facility, other segmental information is not ascertainable.
+78,824.7
+NOTES
+30,515.5
+48,309.2
+31st March, 2015
+Year ended
+Year ended
+31st March, 2016
+in Million
+Sale of Products
+Outside India
+India
+31,018.9
+41,605.7
+72,624.6
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+41 ACCOUNTING STANDARD (AS-15) ON EMPLOYEE BENEFITS
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme
+(ESIC) and other Funds which covers all regular employees. While both the employees and the Company make
+predetermined contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund and other
+Statutory Funds are made only by the Company. The contributions are normally based on a certain percentage of the
+employee's salary. Amount recognised as expense in respect of these defined contribution plans, aggregate to * 587.9
+Million (Previous year 558.2 Million)
+Contribution to Provident Fund and Family Pension Fund
+The Company had an obligation towards provident fund, a defined benefit plan, with respect to certain employees
+upto 31st March 2015 and in the current year the contribution for the same is made to RPF which has been included in
+defined contribution plan.
+The Company had an obligation towards pension, a defined benefit retirement plan, with respect to certain employees,
+who had already retired before 1st March, 2013, will continue to receive the pension as per the pension plan.
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund Scheme.
+Provision for Gratuity is based on actuarial valuation done by independent actuary as at the year end. Actuarial
+Valuation for Compensated Absences is done as at the year end and the provision is made as per Company rules with
+corresponding charge to the Statement of Profit and Loss amounting to ₹ 313.8 Million (Previous Year 244.6 Million)
+and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee
+compensation. Commitments are actuarially determined using the 'Projected Unit Credit' method. Gains and losses on
+changes in actuarial assumptions are accounted for in the Statement of Profit and Loss.
+0.1
+0.1
+21.8
+22.8
+51.6
+90.3
+484.7
+474.7
+31st March, 2015
+31st March, 2016
+in Million
+Year ended
+Year ended
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+Contribution to Superannuation Fund
+Year ended
+31st March, 2016
+Provident
+Fund
+(Funded)
+Profit and Loss
+N.A.
+Merged with Insite Visions incorporated during the year
+(IV) Unsecured Term Loan of Nil (Previous Year ₹2,500.0 Million) has been repaid in Current Year.
+(V) Secured Term Loan from Department of Biotechnology of ₹77.3 Million (Previous Year ₹ 77.3 Million) has been
+secured by hypothecation of assets and goods of the Company. The loan is repayable in 10 (Previous Year 10) half
+yearly instalments of 7.7 Million (Previous Year 7.7 Million) each commencing from 26th September, 2017, last
+instalment is due on 26th March, 2022.
+The Company has not defaulted on repayment of loan and interest payment thereon during the year.
+(B) Details of securities for Short term Borrowings are as follows:
+First charge has been created on a pari-passu basis, by hypothecation of inventories and receivables, both present
+and future.
+58 In respect of any present obligation as a result of past event that could lead to a probable outflow of resources,
+provisions has been made, which would be required to settle the obligation. The said provisions are made as per
+the best estimate of the management and disclosure as per Accounting Standard (AS) 29 - "Provisions, Contingent
+Liabilities & Contingent Assets" has been given below:
+At the commencement of the year
+Add :Pursuant to the Scheme of
+amalgamation (Refer Note 48)
+Product and
+Sales related
+As at 31st March, 2016
+*
+27,240.4
+Consultancy
+charges
+508.1
+Total
+27,748.5
+138
+* in Million
+*
+Consultancy
+charges
+Total
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+26,312.2
+NOTES
+FINANCIAL STATEMENTS
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+57 (A) Details of Long term borrowings and current maturities of long term debt (included under Other Current Liabilities)
+(I) Unsecured External Commercial Borrowings (ECBs) has 6 loans aggregating of USD 266 Million (Previous
+Year USD 288 Million) equivalent to 17,625.2 Million (Previous Year 18,001.4 Million) [(included in long term
+borrowings 15,902.4 Million (Previous Year 11,625.9 Million) and ₹1,722.8 Million (Previous Year 6,375.5
+Million) in current maturity of long term debt)]. For the ECB loans outstanding as at 31st March, 2016, the terms of
+repayment for borrowings are as follows:
+(a) Nil (Previous Year USD 50 Million) equivalent to Nil (Previous Year 3,125.2 Million) The loan was taken on
+12th August, 2010. The outstanding amount has been repaid in Current Year.
+(b) Nil (Previous Year USD 30 Million) equivalent to Nil (Previous Year 1,875.2 Million) The loan was taken on
+9th September, 2010. The outstanding amount has been repaid in Current Year.
+(c) USD 20 Million (Previous Year USD 30 Million) equivalent to 1,325.2 Million (Previous Year 1,875.2 Million)
+The loan was taken on 30th June, 2011 and is repayable in 3 equal installments of USD 10 Million each at the
+end of 4th year, 5th year and 6th year. First installment of USD 10 Million has been repaid in Current Year and
+the last instalment is due on 30th June, 2017.
+(d) USD 50 Million (Previous Year USD 50 Million) equivalent to ₹3,313.0 Million (Previous Year ₹3,125.2 Million)
+The loan was taken on 20th September, 2012 and is repayable on 19th September, 2017.
+(e) USD 100 Million (Previous Year USD 100 Million) equivalent to 6,626.0 Million (Previous Year * 6,250.5
+Million) The loan was taken on 4th June, 2013 and is repayable on 3rd June, 2018.
+(f) USD 16 Million (Previous Year USD 28 Million) equivalent to ₹ 1,060.2 Million (Previous Year ₹ 1,750.1 Million)
+Loan of USD 40 Million was taken on 25th March, 2011 and is repayable in 3 installments viz., 30% each of the
+drawn amount at the end of 4th year and 5th year and 40% of the drawn amount at the end of the 6th year.
+Second installment of USD 12 Million has been repaid in Current Year and first instalment of USD 12 Million
+was repaid in Previous Year. The last instalment is due on 24th March, 2017.
+(g) USD 50 Million (Previous Year Nil) equivalent to ₹3,313.0 Million (Previous Year Nil) The loan was taken on
+11th August, 2015 and is repayable on 11th August, 2017.
+(h) USD 30 Million (Previous Year Nil) equivalent to 1,987.8 Million (Previous Year Nil) The loan was taken on 9th
+September, 2015 and is repayable on 8th September, 2017.
+(II) Unsecured Loan under Foreign Currency Non Resident (FCNR B) Scheme of USD 50 Million (Previous Year Nil)
+equivalent to 3,313.0 Million (Previous Year Nil). The loan was taken on 19th August, 2015 and is repaybale on
+18th August, 2017.
+(III) Redeemable non-convertible debentures of Nil (Previous Year 5,000.0 Million) issued on 23rd November, 2012
+for a period of 36 months at a coupon rate of 9.20% p.a. Such debentures were secured by a pari-passu first
+ranking charge on the Company's specified fixed assets so as to provide a fixed asset cover of 1.25x and were
+listed on the National Stock Exchange. The loan was taken on 23rd November, 2012 and has been repaid in
+Current Year.
+132-
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+85 - 206
+PHARMA
+26,312.2
+609.1
+March, 2016
+Currency
+Buy/Sell
+Cross
+Currency
+31st March, 2016
+Amount in Million
+31st March, 2015
+Forward contract
+USD
+Sell
+INR
+Forward contracts
+Currency swaps
+Currency options
+Currency options
+USD
+Buy
+INR
+$140.0
+$14.0
+$350.0
+59 (a) The following are the outstanding contracts of derivative instruments entered into by the Company as on 31st
+609.1
+(*) includes provision for trade commitments, discounts, rebates and product returns
+508.1
+Add: Provision for the year
+829.3
+Add: Foreign Currency Exchange
+Fluctuation
+1,388.6
+829.3
+1,388.6
+1,149.3
+508.1
+1,657.4
+1,056.4
+1,056.4
+Less: Utilisation / Settlement
+At the end of the year
+2,498.0
+26,960.3
+508.1
+3,006.1
+1,886.5
+1,886.5
+26,960.3
+27,240.5
+27,748.6
+SUN
+131
+(b) As at March 31, 2016, the Company has received an amount of 6.7 Million towards share application money
+towards 13,780 equity shares of the Company [As at March 31, 2015 ₹ 149.0 Million towards 280,474 equity
+shares (no. of shares post merger) at a premium of ₹ 6.7 Million (As at March 31, 2015 ₹ 148.7 Million)]. The
+Company will allot these equity shares during the next financial year. The Company has sufficient authorised
+capital to cover the allotment of these shares. Pending allotment of shares, the amounts are maintained in a
+designated bank account and are not available for use by the Company.
+986,905
+5.0
+5.0
+average
+remaining
+contractual life
+(years)
+0.9
+Granted during the year
+481,766
+5.0
+5.0
+Forfeited during the year
+(202,133)
+5.0
+5.0
+Exercised during the year #*
+(675,123)
+5.0
+5.0
+Lapsed during the year
+(29,628)
+5.0
+Pursuant to the Scheme of Amalgamation
+5.0
+Weighted-
+average exercise
+prices ( 7 )
+Exercise price
+270.00-703.00
+270.00-703.00
+496.0
+3.3
+496.0
+3.3
+Exercisable at the end of the year
+Λ
+$ Includes options exercised, pending allotment.
+* Weighted average share price on the date of exercise 637.7
+^ Number of shares and exercise price are adjusted in accordance with the share exchange ratio (0.8) as per the scheme
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+The movement of the options (post split) granted under ESOP 2011 for the previous year is given below:
+Weighted-
+Stock options
+(numbers)
+(3)
+Outstanding, end of the year
+561,787
+5.0
+Particulars
+Grant Date
+Dividend yield
+Expected life of options from the date(s) of grant
+Risk free interest rate
+Year ended 31 March, 2015
+08-May-14
+0.43%
+1.25, 2.25 and 3.25 years
+8.57% (1.25 years)
+8.65% (2.25 years)
+Expected volatility
+Grant date fair value
+8.71% (3.25 years)
+40.47%
+462.39 (1.25 years)
+460.79 (2.25 years)
+459.16 (3.25 years)
+@@ Assumptions used are as applicable at the date of grant in the context of erstwhile RLL
+The Black-Scholes option-pricing model was developed for estimating fair value of trade options that have no
+vesting restrictions and are fully transferable. Since options pricing models require use of subjective assumptions,
+changes therein can materiality affect fair value of the options. The options pricing models do not necessary
+provide a reliable measurable of fair value of options. The volatility in the share price is based on volatility of
+historical stock price of the erstwhile RLL for last 60 months.
+The following table summarizes the assumptions used in calculating the grant date fair value for instrument
+granted in the year ended March 31, 2015: @@
+^ Number of shares and exercise price are adjusted in accordance with the share exchange ratio (0.8) as per the scheme
+* Weighted average share price on the date of exercise ₹621.36
+# Shares allotted by the ESOP Trust against these exercises
+5.0
+1.7
+Exercisable at the end of the year $
+52,434
+5.0
+5.0
+0.2
+Pursuant to the Scheme of Amalgamation
+Outstanding, end of the year ^
+$170.0
+449,430
+6.3
+1.7
+Exercisable at the end of the year
+Λ
+41,948
+6.3
+6.3
+0.2
+$ Includes options exercised, pending allotment.
+6.3
+USD
+Buy
+INR
+RMB 2.0
+20.1
+Renminbi
+Others
+78.6
+16.3
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+(ii) Amounts payable in foreign currency on account of the following:
+As at 31st March, 2016
+Import of Goods
+and Services
+Product
+settlement,
+claims, recall
+charges and trade
+commitments
+FINANCIAL STATEMENTS
+85 - 206
+4.0
+Currency
+RMB 0.4
+Franc
+balances
+Euro
+$ 17.8
+€ 0.9
+* 1,179.4
+$ 6.4
+* 400.4
+* 69.1
+€ 0.2
+13.2
+Russian Ruble
+RUB 26.6
+* 26.0
+RUB 65.5
+70.2
+West African CFA
+CFR 92.5
+* 10.6
+CFR 176.0
+16.8
+Chinese Yuan
+Amount in Million
+US Dollar
+$ 63.5
+Australian Dollar
+Russian Ruble
+UAE Dinar
+Kazakhstani Tenge
+Central African Franc
+Vietnamese Dong
+South African Rand
+Others
+RUB 2.6
+72.6
+RUB 59.0
+63.4
+AUD 0.6
+31.3
+AUD 0.4
+* 18.9
+AED 0.3
+75.6
+AED 0.8
+12.8
+KZT 39.7
+7.7
+9.0
+ILS 0.6
+56.8
+ILS 3.3
+Euro
+€ 16.7
+* 4,204.8
+1,250.5
+As at 31st March, 2015
+Amount in Million
+$ 28.5
+1,752.8
+€ 26.2
+* 471.2
+US Dollar
+Great Britain Pound
+* 157.6
+£ 1.6
+* 148.9
+Japanese Yen
+\ 8.4
+* 4.9
+\ 5.1
+72.5
+Israel Shakel
+£ 1.7
+1,169,545
+1,169,545
+Cash and Bank
+* 1,159.9
+181.1
+ZAR
+Sell
+INR
+$100.0
+ZAR 42.5
+** Structured Options @ 2.00 to 2.50 times
+133
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+(b) The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are
+given below:
+134
+(i)
+Amounts receivable in foreign currency on account of the following:
+As at 31st March, 2016
+Currency
+Forward contracts
+Amount in Million
+$50.0
+Buy
+$30.0
+USD
+Buy
+INR
+$100.0
+$100.0
+**
+USD
+Sell
+INR
+$1.0
+$71.0
+Interest rate swaps
+USD
+Buy
+INR
+$40.0
+Currency cum interest rate swaps
+USD
+INR
+As at 31st March, 2015
+Amount in Million
+Exports of Goods
+and Services
+US Dollar
+* 22.8
+Canadian Dollar
+CAD 1.9
+Polish Zloty
+PLN 1.3
+Others
+* 54.1
+* 599.7
+92.5
+BDT 191.1
+ZAR 70.8
+\ 14.3
+NGN 22.7
+* 1,240.4
+152.9
+* 362.2
+* 210.9
+42.0
+* 7.4
+77.2
+* 91.9
+* 21.7
+24.3
+€ 17.3
+£ 2.0
+NGN 68.5
+Nigerian Naira
+Japanese Yen
+MYR 2.5
+$ 30.9
+Euro
+€ 21.5
+*2,047.4
+* 1,620.1
+Great Britain Pound
+£ 0.3
+Russian Ruble
+RUB 1,219.7
+Bangladesh Taka
+RUB 1,156.5
+BDT 223.0
+* 188.4
+South African Rand
+ZAR 466.9
+* 2,087.2
+Australian Dollar
+AUD 11.8
+Malaysian Ringet
+MYR 5.4
+AUD 4.4
+28.8
+1,194.1
+Λ
+As at 31st March, 2015
+Product and
+Sales related
+Pursuant to the Scheme of Amalgamation
+Taro Pharmaceuticals North America, Inc.
+ANNEXURE "A"
+FINANCIAL STATEMENTS
+85 - 206
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+ANNEXURE "A"
+136
+Taro Pharmaceuticals U.S.A., Inc.
+Taro Pharmaceuticals Inc.
+Taro Pharmaceutical Industries Ltd. (TARO)
+Sun Laboratories FZE
+Morley & Company, Inc.
+Sun Pharma MEA JLT (Refer Footnote 3)
+Sun Pharma Healthcare FZE
+Sun Pharma Japan Ltd.
+Caraco Pharmaceuticals Private Limited
+Taro Pharmaceuticals Europe B.V.
+Sun Global Development FZE
+Taro Pharmaceuticals Ireland Limited
+Taro Pharmaceuticals (UK) Limited
+Dungan Mutual Associates, LLC
+United Research Laboratories, Limited (Refer Footnote 10)
+Mutual Pharmaceutical Company Inc.
+AR Scientific, Inc (Refer Footnote 10)
+URL Pharma, Inc (Refer Footnote 11)
+Sirius Laboratories Inc
+Dusa Pharmaceuticals New York, Inc.
+Dusa Pharmaceuticals, Inc
+Alkaloida Sweden AB
+Aditya Pharma Private Limited (Refer Footnote 2)
+Khyati Realty ME Ltd. (Refer Footnote 2)
+Sun Universal Ltd (Refer Footnote 2)
+Orta Ltd. (Refer Footnote 2)
+Taro Pharmaceutical India Private Limited. (Refer Footnote 8)
+Taro Pharmaceuticals Canada, Ltd.
+Taro Pharmaceutical Laboratories Inc
+Tarochem Limited (Refer Footnote 2)
+One Commerce Drive LLC
+Taro Hungary Intellectual Property Licensing Limited Liability Company
+3 Skyline LLC
+Taro International Ltd.
+Sun Pharmaceuticals Korea Ltd.
+Sun Pharma Philippines, Inc.
+Sun Global Canada Pty. Ltd.
+Neetnav Real Estate Private Limited
+Faststone Mercantile Company Private Limited
+Outstanding, end of the year ·
+Sun Pharma Laboratories Limited
+Sun Pharma De Venezuela, CA.
+OOO "Sun Pharmaceutical Industries" Ltd.
+Sun Pharmaceutical Peru S.A.C.
+SPIL De Mexico S.A. DE C.V.
+Sun Pharma De Mexico S.A. DE C.V.
+SUN Farmaceutica Do Brasil Ltda.
+Sun Pharmaceutical (Bangladesh) Limited
+Sun Pharmaceutical Industries, Inc.
+Green Eco Development Centre Limited
+Sun Pharma Global Inc. (Refer Footnote 4)
+1. Subsidiaries
+ACCOUNTING STANDARD (AS-18) "RELATED PARTY DISCLOSURES"
+Names of related parties where control exists and description of relationships
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+Realstone Multitrade Private Limited
+Skisen Labs Private Limited
+Softdeal Trading Company Private Limited
+Ranbaxy Pharmacie Generiques
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+Sun Pharma Global FZE
+Sun Pharmaceuticals France
+Sun Pharmaceuticals Germany GmbH
+Sun Pharmaceutical Spain, S.L.U
+Sun Pharmaceuticals Italia S.R.L.
+Sun Pharmaceutical Industries (Europe) B.V.
+Aditya Acquisition Company Ltd.
+Sun Pharmaceutical Industries (Australia) Pty Limited
+URL PharmaPro, LLC
+Sun Pharmaceutical UK Limited
+The Taro Development Corporation
+Chattem Chemicals, Inc
+Caraco Pharma Inc. (Refer Footnote 5)
+Ranbaxy (Netherlands) B.V.
+Ranbaxy Nigeria Limited
+Ranbaxy (Malaysia) Sdn. Bhd.
+Gufic Pharma Limited
+Vidyut Investments Limited
+Ranbaxy Drugs Limited
+Alkaloida Chemical Company Zrt.
+Universal Enterprises Private Limited
+Sun Pharma Switzerland Limited
+Sun Pharma Holdings
+Footnote
+6. Enterprise under significant Influence of Key Management Personnel or their relatives
+Ms. Vidhi Shanghvi
+Mr. Aalok Shanghvi
+Mr. Sailesh T. Desai
+Mr. Sudhir V. Valia
+Mr. Dilip S. Shanghvi
+Zenotech Laboratories Limited
+Daiichi Sankyo (Thailand) Limited
+S&I Ophthalmic LLC
+5. Relatives of Key Management Personnel
+4. Key Management Personnel
+3. Associate
+2. Jointly Controlled Entities
+Names of related parties where there are transactions and description of relationships
+Solrex Pharmaceuticals Company
+Zalicus Pharmaceuticals Limited (Refer Footnote 7)
+Thea Acquisition Corporation (Refer Footnotes 6 and 12)
+Insite Vision Ltd. (Refer Footnote 6)
+Insite Visions Incorported (Refer Footnote 6)
+1 2
+Incorporated/Acquired during the previous year
+Dissolved/liquidated during the previous year
+Sun Petrochemicals Pvt Ltd
+Navjivan Rasayan (Gujarat) Pvt Ltd
+Sun Pharma Advanced Research Company Ltd
+12
+11 Merged with Mutual Pharmaceutical Company, Inc. during the year
+Merged with URL Pharma Inc during the year
+10
+Dissolved/Liquidated during the year
+Acquired and merged with Taro Pharmaceutical Industries Ltd. during the year
+Incorporated/Acquired during the year
+9
+Taro Pharmaceutical India Private Ltd. Is under liquidation
+Perryton Wind Power LLC (Refer Footnote 6)
+8
+6
+Merged with Sun Pharmaceutical Industries, Inc. during the year
+5
+Since amalgamated into the Company on January 1, 2015
+4
+Merged with Sun Pharma Global FZE during the previous year
+3
+Son of Managing Director
+Daughter of Managing Director
+Managing Director
+Wholetime Director
+Wholetime Director
+7
+SUN
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+Ranbaxy Signature LLC
+S.C Terapia S.A.
+Ranbaxy Portugal - Com E Desenvolv DeProd Farmaceuticos Unipessoal Lda (Refer
+Footnote 9)
+Ranbaxy (Poland) Sp Z o.o.
+Ranbaxy PRP (Peru) S.A.C.
+Ranbaxy Italia S.P.A
+Ranbaxy Ireland Limited
+Ranbaxy GmbH
+Basics GmbH
+Office Pharmaceutique Industriel Et Hospitalier
+Rexcel Egypt LLC
+Ranbaxy Egypt LLC
+Ranbaxy Pharmaceuticals Canada Inc.
+Ranbaxy Farmaceutica Ltda.
+Ranbaxy Belgium N.V. (Refer Footnote 9)
+Ranbaxy Australia Pty Ltd
+PI Real Estate Ventures, LLC (Refer Footnote 1)
+Pharmalucence, Inc. (Refer Footnote 1)
+Sun Pharma East Africa Limited (Refer Footnote 1)
+Silverstreet Developers LLP
+AO Ranbaxy (Formerly Known as ZAO Ranbaxy)
+Ranbaxy South Africa Proprietary Limited
+Ranbaxy Pharmaceuticals Proprietary Limited
+-
+79.2
+Ranbaxy Laboratories, Inc.
+Ohm Laboratories, Inc.
+Ranbaxy USA, Inc. (Refer Footnote 2)
+Ranbaxy (Thailand) Company Limited
+Ranbaxy Pharmaceuticals, Inc.
+Ranbaxy Inc.
+Ranbaxy Europe Limited
+Ranbaxy Holdings (U.K.) Limited
+Sun Pharmaceuticals Morocco LLC (Formerly Known As Ranbaxy Morocco LLC)
+Ranbaxy (U.K.) Limited
+Be-Tabs Investments Proprietary Limited
+ANNEXURE "A"
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+137
+Sonke Pharmaceuticals Proprietary Limited
+Laboratorios Ranbaxy, S.L.U
+135
+KZT 27.4
+on borrowings)
+(447,825) 270.00-703.00
+3.3
+496.0
+1,169,586 270.00-703.00
+3.3
+496.0
+41 270.00-703.00
+3.3
+496.0
+270.00-703.00
+1,169,545
+(years)
+of subsidiaries
+contractual life
+average
+remaining
+Weighted-
+average
+exercise prices
+(3)
+Range of
+Exercise prices
+(₹)
+Stock options
+(numbers)
+Weighted-
+518.9
+$ Weighted average share price on the date of exercise * 823.63
+(111,022) 270.00-703.00
+480.9
+Exercised during the year #^
+Forfeited during the year
+Total Number of options outstanding
+No of options of certain overseas employees
+No. of options on Account of rounding off of the
+fraction to the next higher whole Number as per
+the merger Scheme
+Outstanding at the commencement of the year
+Number of options - post-merger of Erstwhile
+RLL with the transferee company
+130
+average
+remaining
+Weighted-
+The movement of the options (post split) granted under SUN-ESOP 2015 for the current year is given below:
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+.129
+480.9
+2.5
+610,739 270.00-703.00
+610,739 270.00-703.00
+* Includes options exercised, pending allotment.
+*
+Exercisable at the end of the year
+ZAR 33.4
+149.1
+ZAR 0.2
+1.1
+40.3
+12.3
+US Dollar
+$221.5
+* 14,674.5
+$ 228.5
+* 14,276.4
+Provision in
+Euro
+€ 20.8
+* 1,569.8
+€ 19.2
+* 1,286.6
+respect of losses
+60 Previous year figures are regrouped wherever necessary.
+4.2
+VND 1,430.5
+113.7
+VND 38.3
+Outstanding at the end of the year
+Lapsed during the year
+Exercised during the year $
+Total Number of options outstanding
+No. of options on Account of rounding off of the
+fraction to the next higher whole Number as per the
+merger Scheme
+Number of options - post-merger of Erstwhile
+RLL with the transferee company
+Outstanding at the commencement of the year
+The movement of the options (post split) granted under SUN-ESOS 2015 for the current year is given below:
+Pursuant to the Scheme of Amalgamation, Sun Pharmaceutical Industries Limited ('transferee company')
+formulated two Employee Stock Option Schemes, namely, (i) SUN Employee Stock Option Scheme-2015 (SUN-
+ESOS 2015) to administer ESOS 2005 (ii) SUN Employee Stock Option Plan-2015 (SUN-ESOP 2015) to administer
+ESOP 2011. These scheme provide that the number of transferee options issued shall equal to the product of
+number of transferor options outstanding on effectiveness of Scheme multiplied by the Share exchange ratio
+(0.80) and each transferee option shall have an exercise price per equity share equal to transferor option exercise
+price per equity shares divided by the share exchange ratio (0.80) and fractions rounded off to the next higher
+whole number. The terms and conditions of ESOS, of transferee company are not less favourable than those of
+ESOSS of erstwhile RLL. No new grants shall be made under these schemes and these schemes shall operate
+only for the purpose of administering the exercise of options already granted/vested on an employee pursuant to
+SUN-ESOS 2015 and SUN-ESOP 2015.
+Lapsed during the year
+In accordance with the above approval of issuance of options, stock options have been granted from time to time.
+The stock options outstanding as on 30 June 2005 are proportionately adjusted in view of the sub-division of
+equity shares of the Erstwhile RLL from the face value of 10 each into 2 equity shares of ₹ 5 each.
+NOTES
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+CFR 403.5
+46.2
+CFR 404.1
+41.7
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Outstanding, end of the year
+479.9
+$ Includes options exercised, pending allotment.
+506.4
+(661,639) 216.00-538.50
+Lapsed during the year
+419.2
+216.00-538.50
+(1,434,434)
+Exercised during the year*
+450.0
+(21,578) 450.00-450.00
+3.4
+426.2
+216.00-561.00
+3,579,582
+Forfeited during the year
+Pursuant to the Scheme of Amalgamation
+(years)
+contractual life
+average
+remaining
+Weighted-
+average exercise
+prices ( 7 )
+Outstanding at the end of the year $
+1,461,931 216.00-561.00
+Exercisable at the end of the year $
+3.3
+accrued but not due
+(include interest
+* 20,486.7
+€ 0.9
+$327.8
+* 361.1
+62.4
+$ 5.8
+* 40,246.3
+$ 607.4
+US Dollar
+Range of
+Exercise prices
+(₹)
+Loans
+* 404.4
+$ 6.1
+€ 0.9
+US Dollar
+Euro
+Payable
+Commission
+3.3
+396.3
+1,461,931 216.00-561.00
+Exercisable at the end of the year $
+68.5
+Stock options
+(numbers)
+396.3
+The movement of the options (post split) granted under ESOS II and ESOS 2005 for the previous year is given below:
+455,766
+0.9
+6.3
+6.3
+4,968
+0.9
+6.3
+6.3
+1.7
+6.3
+6.3
+449,430
+(years)
+contractual life
+Weighted-
+average exercise
+prices (*)
+(₹)
+Exercise price
+Weighted-
+Stock options
+(numbers)
+6.3
+6.3
+1,368
+0.9
+During the current year, the Company has recorded a Stock-based employee compensation expense of 98.8
+Million (Previous Year 205.0 Million). The amount has been determined under a fair value method wherein the
+grant date fair value of the options was calculated by using Black Scholes pricing model.
+^ Weighted average share price on the date of exercise 848.68
+# Shares allotted by the ESOP Trust against the options exercised including 1,066 shares equivalent to 1,333 shares issued by Erstwhile RLL prior to
+10th April, 2015.
+0.2
+6.3
+6.3
+40,259
+6.3
+6.3
+169,913
+1.1
+6.3
+6.3
+(18,326)
+6.3
+6.3
+(224,201)
+6.3
+(43,326)
+6.3
+146
+CORPORATE OVERVIEW
+02 - 05
+ii.
+FINANCIAL STATEMENTS
+85 - 206
+iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education
+and Protection Fund by the Holding Company and its subsidiary companies and an associate company
+incorporated in India except a sum of ₹ 9.8 Million, which are held in abeyance by the Holding Company due to
+pending legal cases.
+i. The consolidated financial statements disclose the impact of pending litigations on the consolidated financial
+position of the Group, its associates and jointly controlled entities - Refer Notes 31(A)(I), 31(A)(II) and 32 to the
+consolidated financial statements.
+Provision has been made in the consolidated financial statements, as required under the applicable law or
+accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative
+contracts - Refer Notes 6 and 9 to the consolidated financial statements in respect of such items as it relates
+to the Group. The jointly controlled entities and the associate did not have any long-term contracts including
+derivative contracts.
+STATUTORY REPORTS
+06 - 84
+g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the
+Companies (Audit and Auditor's) Rules, 2014, in our opinion and to the best of our information and according to
+the explanations given to us:
+As required by Section 143(3) of the Act, we report, to the extent applicable, that:
+f)
+e) On the basis of the written representations received from the directors of the Holding Company as on 31st
+March, 2016 taken on record by the Board of Directors of the Holding Company and the reports of the auditors
+of its subsidiary companies and an associate company incorporated in India, none of the directors of the Group
+companies and its associate company incorporated in India is disqualified as on 31st March, 2016 from being
+appointed as a director in terms of Section 164(2) of the Act.
+d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards prescribed
+under Section 133 of the Act, as applicable.
+The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, and the Consolidated Cash
+Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the
+purpose of preparation of the consolidated financial statements.
+In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated
+financial statements have been kept so far as it appears from our examination of those books and the reports of
+the other auditors.
+b)
+a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
+were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
+REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
+1.
+Place: Mumbai
+With respect to the adequacy of the internal financial controls over financial reporting and the operating
+effectiveness of such controls, refer to our Report in "Annexure A", which is based on the auditors' reports of the
+Holding company, subsidiary companies and an associate company incorporated in India. Our report expresses
+an unmodified opinion on the adequacy and operating effectiveness of the internal financial controls over financial
+reporting in respect of the Holding Company, its subsidiary companies and an associate company incorporated in
+India.
+Date: 30th May, 2016
+MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
+(Firm's Registration No. 117366W/W-100018)
+Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below,
+is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other
+auditors and the financial statements / financial information certified by the Management.
+576.3
+148
+A company's internal financial control over financial reporting is a process designed to provide reasonable assurance
+regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
+with generally accepted accounting principles. A company's internal financial control over financial reporting includes
+those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
+reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions
+are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
+We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the subsidiary
+companies and the associate company, which are companies incorporated in India, in terms of their reports referred to in
+the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Company's
+internal financial controls system over financial reporting.
+Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
+system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial
+reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that
+a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on
+the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of
+material misstatement of the financial statements, whether due to fraud or error.
+Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based
+on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed
+under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those Standards and
+the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
+assurance about whether adequate internal financial controls over financial reporting was established and maintained and if
+such controls operated effectively in all material respects.
+AUDITOR'S RESPONSIBILITY
+The respective Board of Directors of the Holding company, its subsidiary companies and its associate company, which
+are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on
+the internal control over financial reporting criteria established by the Company considering the essential components of
+internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
+Institute of Chartered Accountants of India (the "Guidance Note"). These responsibilities include the design, implementation
+and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient
+conduct of its business, including adherence to the respective company's policies, the safeguarding of its assets, the
+prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
+preparation of reliable financial information, as required under the Act.
+MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
+In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended 31st
+March, 2016, we have audited the internal financial controls over financial reporting of the Holding Company and its
+subsidiary companies and its associate company, which are companies incorporated in India, as of that date.
+REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (I) OF
+SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACT")
+(REFERRED TO IN PARAGRAPH 1(F) UNDER 'REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS' OF OUR REPORT OF EVEN DATE TO THE
+MEMBERS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED)
+INDEPENDENT AUDITOR'S REPORT
+ANNEXURE "A" TO THE
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+147
+(Membership No. 36920)
+Partner
+RAJESH K. HIRANANDANI
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+EMPHASIS OF MATTER
+SUN
+336.0
+336.0
+0.8
+0.9
+6.0
+12.1
+20
+6.8
+13.0
+11.0
+12.1
+11.0
+12.1
+31.3
+19.4
+31.3
+19.4
+31.5
+19.3
+31.5
+19.3
+73.8
+50.8
+2,873.1
+274.0
+3,541.5
+556.2
+31-03-16
+Particulars
+Relatives of Key
+Management
+Personnel
+Key Management
+Personnel
+Associates
+Joint Controlled
+Entities
+Subsidiaries
+Particulars
+* in Million
+Total
+Enterprise under
+significant Influence of
+Key Management
+Personnel or their
+relatives
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+CORPORATE OVERVIEW
+02 - 05
+ANNEXURE "A"
+185.0
+310.5
+336.0
+1,980.9
+398.5
+406.3
+1,250.1
+414.8
+576.3
+Outstanding Letters
+389.5
+389.5
+73.8
+50.8
+274.0
+274.0
+31-03-16 31-03-15 31-03-16
+Key Management
+Personnel
+185.0
+Ranbaxy (U.K.) Limited
+Generiques SAS
+310.5
+336.0
+Ranbaxy Pharmacie
+1,980.9
+398.5
+S.C Terapia S.A.
+406.3
+Ranbaxy Egypt (L.L.C.)
+B.V.
+1,250.1
+414.8
+Ranbaxy (Netherlands)
+Bhd.
+556.2
+ANNEXURE "A"
+274.0
+significant Influence of
+II. 3111983
+0.4
+0.7
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+SUN
+0.4
+1.5
+469
+8.9
+9.6
+1.4
+1.5
+18.9
+20.4
+25.2
+23.8
+1.5
+31-03-15
+3.6
+0.9
+31-03-16
+* in Million
+Total
+31-03-16
+31-03-15
+2,873.1
+31-03-16 31-03-15
+31-03-16 31-03-15 31-03-16 31-03-15 31-03-16 31-03-15
+SUN
+85 - 206
+FINANCIAL STATEMENTS -
+06 - 84
+STATUTORY REPORTS
+143
+** Net of refund of 1.0 Million (Previous Year - Nil) in respect of excess remuneration paid for financial year 2013-14
+1.1 Million (Previous Year - Nil) in respect of excess remuneration paid for financial year 2013-14
+* Net of refund of
+Million) in respect of an
+Associate]
+331.2
+4.4
+(0.4)
+(14,443.6)
+(16,589.0)
+(8,020.0)
+326.8
+(1.2)
+(2.4)
+(16.4)
+(5.4)
+(6.4)
+(Previous Year 274.0
+provision *663.5 Million
+4.4
+― ANNUAL REPORT 2015-16
+4.4
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+INDEPENDENT AUDITOR'S REPORT
+145
+b) We did not audit the financial statements / financial information of 37 subsidiaries and 3 jointly controlled entities,
+whose financial statements / financial information reflect total assets of ₹10,121.4 Million as at 31st March, 2016, total
+revenues of 11,078.7 Million and net cash inflows amounting to ₹ 987.7 Million for the year ended on that date, as
+considered in the consolidated financial statements. The consolidated financial statements also include the Group's
+share of net profit of 3.4 Million for the year ended 31st March, 2016, as considered in the consolidated financial
+statements, in respect of an associate, whose financial statements / financial information have not been audited by us.
+These financial statements / financial information are unaudited and have been furnished to us by the Management
+and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included
+in respect of these subsidiaries, jointly controlled entities and an associate, is based solely on such unaudited financial
+statements / financial information. In our opinion and according to the information and explanations given to us by the
+Management, these financial statements / financial information are not material to the Group.
+a) We did not audit the financial statements / financial information of 73 subsidiaries and a jointly controlled entity, whose
+financial statements / financial information reflect total assets of 349,127.1 Million as at 31st March, 2016, total
+revenues of 181,053.4 Million and net cash inflows amounting to ₹3,304.9 Million for the year ended on that date,
+as considered in the consolidated financial statements. The consolidated financial statements also include the Group's
+share of net loss of 22.1 Million for the year ended 31st March, 2016, as considered in the consolidated financial
+statements, in respect of 2 associates, whose financial statements / financial information have not been audited by us.
+In case of the foreign subsidiaries, the local GAAP financial statements have been restated by the management of the
+said entities so that these conform to generally accepted accounting principles in India. These financial statements /
+financial information have been audited by other auditors whose reports have been furnished to us and our opinion on
+the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these
+subsidiaries, a jointly controlled entity and associates, is based solely on the reports of the other auditors.
+OTHER MATTERS
+Our opinion is not modified in respect of this matter.
+We draw attention to Note 53 to the consolidated financial statements. As referred to in the said Note, remuneration to the
+Managing Director and a Whole-time Director of the Holding Company for the previous year ended 31st March, 2015 is in
+excess of the limits specified under Schedule V to the Act by 20.7 Million. In this regard, we have been informed by the
+Management of the Holding Company that they have made further representations to the Central Government in respect
+of their applications for approving the amounts of maximum remuneration for the three years ending 31st March, 2017,
+including for the excess amounts already paid / provided. The response in respect of the foregoing is awaited from the
+Central Government.
+In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated
+financial statements give the information required by the Act in the manner so required and give a true and fair view in
+conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its
+associates and jointly controlled entities as at 31st March, 2016, and their consolidated profit and their consolidated cash
+flows for the year ended on that date.
+OPINION
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+144
+We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their
+reports referred to in sub-paragraph (a) of the Other Matters paragraph below, is sufficient and appropriate to provide a
+basis for our audit opinion on the consolidated financial statements.
+An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the
+consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment
+of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making
+those risk assessments, the auditor considers internal financial control relevant to the Holding Company's preparation of
+the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate
+in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the
+reasonableness of the accounting estimates made by the Holding Company's Board of Directors, as well as evaluating the
+overall presentation of the consolidated financial statements.
+We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those
+Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
+about whether the consolidated financial statements are free from material misstatement.
+Our responsibility is to express an opinion on these consolidated financial statements based on our audit. While conducting
+the audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which
+are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
+AUDITOR'S RESPONSIBILITY
+The Holding Company's Board of Directors is responsible for the preparation of these consolidated financial statements
+in terms of the requirements of the Companies Act, 2013 (hereinafter referred to as "the Act") that give a true and fair
+view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group
+including its associates and jointly controlled entities in accordance with the accounting principles generally accepted in
+India, including the Accounting Standards prescribed under Section 133 of the Act, as applicable. The respective Board
+of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for
+maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of
+the Group, its associates and jointly controlled entities and for preventing and detecting frauds and other irregularities; the
+selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and
+prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating
+effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and
+presentation of the financial statements that give a true and fair view and are free from material misstatement, whether
+due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the
+Directors of the Holding Company, as aforesaid.
+MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS
+We have audited the accompanying consolidated financial statements of SUN PHARMACEUTICAL INDUSTRIES LIMITED
+(hereinafter referred to as "the Holding Company") and its subsidiaries (the Holding Company and its subsidiaries together
+referred to as “the Group"), its associates and jointly controlled entities, comprising of the Consolidated Balance Sheet as at
+31st March, 2016, the Consolidated Statement of Profit and Loss, the Consolidated Cash Flow Statement for the year then
+ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as
+"the consolidated financial statements").
+REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
+TO THE MEMBERS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Loans Givien [net of
+(0.4)
+(16,581.2) (14,419.6)
+(8,020.0)
+Ranbaxy (U.K.) Limited
+Balance Outstanding
+as at the end of the
+year
+Receivables [net of
+provision Nil (Previous
+Year 58.3 Million) in
+respect of a Subsidiary]
+Generiques SAS
+336.0
+Ranbaxy Pharmacie
+398.5
+S.C Terapia S.A.
+406.3
+Ranbaxy Egypt (L.L.C.)
+B.V.
+414.8
+556.2
+576.3
+414.8
+Ranbaxy (Netherlands)
+Bhd.
+556.2
+Ranbaxy Malaysia Sdn.
+Ranbaxy Nigeria Limited
+behalf of entities
+of Comfort issued on
+31-03-15
+2,873.1
+31-03-16
+31-03-16 31-03-15
+Payables
+Loans Taken
+185.0
+406.3
+6,359.4
+9,103.9
+23.0
+134.6
+1.8
+1.3
+0.9
+8,966.6 6,335.1
+(7,753.4)
+23.0 (15,500.7)
+134.6
+PHARMA
+(1.2)
+(16.4)
+(5.4)
+320.4
+1.8
+1.3
+0.9
+(8,080.5)
+(15,630.2)
+185.0
+336.0
+398.5
+(2.4)
+576.3
+Ranbaxy Malaysia Sdn.
+Ranbaxy Nigeria Limited
+Others
+0.8
+2.2
+42
+Receiving of Service
+Services
+1,609.9
+1,710.1
+0.5
+5
+S.C Terapia S.A.
+38.4
+262.7
+Sun Pharma Advanced
+Research Company Ltd
+Ohm Laboratories, Inc.
+211.6
+20.2
+Ranbaxy Europe Limited
+161.4
+309.9
+3.9
+38.4
+0.4
+461.7
+3.9
+AO Ranbaxy
+Company
+392.9
+10.0
+Sale of Fixed Assets
+86.3
+74.8
+0.4
+Öö
+14
+15.5
+16,526.2
+15,859.0
+0.4
+86.7
+75.2
+Sun Pharma Laboratories
+65.8
+13.7
+65.8
+13.7
+Limited
+Solrex Pharmaceuticals
+15.8
+20.5
+15.8
+20.5
+0.4
+15,450.6
+1.2
+258.7
+ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+ANNEXURE "A"
+* in Million
+121111111111111******
+ཚེ ། ། ༄」 ་ ་ ་ ་ ་
+0.3
+232.6
+185.8
+1.
+PHARMA
+Entities
+1111111
+Particulars
+Others
+31-03-16
+31-03-15
+974.2
+918.3
+Reimbursement of
+1,101.2
+1,066.0
+Expenses
+Sun Pharmaceutical
+1
+SUN
+31-03-16
+31-03-15
+167.8
+1,868.6
+1,878.4
+262.7
+461.7
+258.7
+167.8
+258.7
+167.8
+211.6
+20.2
+161.4
+309.9
+-139
+140
+Particulars
+Subsidiaries
+Joint Controlled
+Key Management
+Personnel
+Relatives of Key
+Total
+significant Influence of
+31-03-15
+0.5
+0.3
+2.6
+16,175.8
+7,306.6
+922.9
+0.3
+Solrex Pharmaceuticals
+1,207.2
+946.3
+31-03-16
+2,100.1
+1,207.2
+31-03-15
+2,017.6
+946.3
+Company
+Sun Pharma Laboratories
+689.5
+1.1
+468.4
+468.4
+Limited
+Alkaloida Chemical
+98.2
+243.9
+98.2
+Company Zrt.
+Ohm Laboratories, Inc.
+2.8
+228.5
+Others
+689.5
+31-03-16 31-03-15
+behalf of subsidiaries
+31-03-16 31-03-15
+ANNEXURE "A"
+02 - 05
+CORPORATE OVERVIEW
+NOTES
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Key Management
+Personnel
+Relatives of Key
+Management
+Personnel
+Enterprise under
+significant Influence of
+Key Management
+Personnel or their
+relatives
+* in Million
+Total
+J
+ACCOUNTING STANDARD (AS-18) "RELATED PARTY DISCLOSURES"
+Particulars
+Subsidiaries
+Joint Controlled
+Entities
+06 - 84
+STATUTORY REPORTS
+FINANCIAL STATEMENTS -
+85 - 206
+Particulars
+31-03-16 31-03-15
+31-03-16
+31-03-15
+31-03-16
+Purchase of goods
+2,078.4 1,980.0
+31-03-15
+37.3
+80.7
+92.9
+37.3
+1.1
+980.0
+980.0
+Undertaking
+Sun Pharma Laboratories
+Limited
+980.0
+980.0
+Sale of goods
+23,042.6 30,297.7
+392.9
+10.0
+15.5
+23,393.0
+30,706.1
+Sun Pharma Global (FZE)
+3,311.7 3,648.6
+3,311.7
+3,648.6
+Sun Pharma Laboratories
+Limited
+2,632.2
+3,891.9
+2,632.2
+3,891.9
+Ohm Laboratories, Inc.
+Others
+922.9
+7,306.6
+Purchase of
+320.7
+Footnote (i) to Note 10)
+1,134.1
+0.3
+2.8
+102.4
+Purchase of Fixed
+0.5
+1,134.1
+4.0
+4.5
+8 45
+Assets
+Sun Pharma Advanced
+4.0
+40
+4.0
+243.9
+228.5
+130.5
+1,134.1
+Research Company Ltd
+Sun Pharma Laboratories
+0.5
+Limited
+Neetnav Real Estate
+1,134.1
+0.5
+Private Limited (Refer
+614.7
+31-03-16 31-03-15
+Sun Pharmaceutical
+394.3
+Preference share
+Alkaloida Chemical
+394.3
+Company Zrt.
+Interest Income
+208.3
+61.9
+Zenotech Laboratories
+61.9
+Limited
+Dividend Income on
+Ranbaxy (Netherlands)
+B.V.
+141
+Interest Expense
+1,188.8
+1,187.9
+Limited
+Others
+50.4
+6
+3.6
+530
+157.9
+Private Limited
+65.7
+Neetnav Real Estate
+Preference Shares in
+Subsidiary
+Alkaloida Chemical
+473.9
+Company Zrt.
+Sales of Investment in
+37,994.6
+Sun Pharma Holding
+Sun Pharma Laboratories
+37,994.6
+Limited
+Loan Taken
+35,480.0
+65.7
+Sun Pharma Laboratories
+35,480.0
+Limited
+Neetnav Real Estate
+65.7
+Private Limited
+Loan Repaid
+27,545.7
+Sun Pharma Laboratories
+27,480.0
+Limited
+3.6
+473.9
+142-
+Subsidiaries
+current year)
+Zenotech Laboratories
+Limited
+Director's
+Remuneration
+(Refer Note 55)
+Mr. Dilip S. Shanghvi *
+Mr. Sudhir V. Valia **
+Mr. Sailesh T. Desai
+Apprenticeship Stipend
+/ Remuneration
+Mr. Aalok D. Shanghvi
+(including Interest in
+Ms. Vidhi D. Shanghvi
+Associates
+31-03-16 31-03-15
+Letters of comfort
+given on behalf of
+336.0
+subsidiary
+S.C Terapia S.A.
+Withdrawal of letters
+2,873.1
+336.0
+3,541.5
+of comfort given on
+Industries, Inc.
+1.
+Loans and Advances
+Provision for doubtful
+Private Limited
+Particulars
+31-03-16
+31-03-15
+Neetnav Real Estate
+0.9
+3.6
+Private Limited
+Rent Income
+23.8
+18.9
+Sun Pharma Laboratories
+23.8
+18.9
+Limited
+Others
+Rent Expense
+9.6
+Solrex Pharmaceuticals
+8.9
+699
+0.4
+Company
+Neetnav Real Estate
+0.7
+0.4
+Particulars
+Redemption of
+Sun Pharma Laboratories
+0.4
+Sun Pharma Global (FZE)
+205.8
+110.1
+Ranbaxy Inc.
+2.8
+435.0
+Others
+202.5
+434.9
+Reimbursement of
+147.8
+692.1
+Expenses
+Sun Pharma Global (FZE)
+130.6
+176.3
+Sun Pharma Advanced
+Research Company Ltd
+Sun Pharma Laboratories
+3.6
+475.8
+Limited
+Others
+13.6
+40.0
+Research Company Ltd
+Finance (including
+Sun Pharma Advanced
+370.4
+159.9
+152.0
+Industries (Europe) B.V.
+Sun Pharmaceuticals
+149.8
+31.0
+France
+Ranbaxy
+149.1
+Pharmaceuticals (Pty)
+Ltd.
+Sun Pharma Global (FZE)
+7.6
+133.1
+Others
+314.1
+135.2
+Rendering of Service
+Services
+1,132.5 1,750.0
+Sun Pharma Laboratories
+424.0
+399.6
+2,058.5
+Ranbaxy
+297.4
+Pharmaceuticals, Inc.
+163.5
+Limited
+equity contributions)
+Total
+31-03-15
+31-03-16 31-03-15
+Particulars
+31-03-16 31-03-15 31-03-16 31-03-15
+31-03-15
+Loans given / Deposit
+74.5
+Sun Pharma Global (FZE)
+1,133.2
+Neetnav Real Estate
+148.6
+significant Influence of
+Private Limited
+5.7
+74.5
+Loans received back
+0.4
+18,944.9
+Ranbaxy (Netherlands)
+9,237.0
+B.V.
+Alkaloida Chemical
+7,649.4
+Company Zrt.
+loans, Investment and
+Others
+Others
+1,287.5
+in an Associate
+02-05
+CORPORATE OVERVIEW
+Joint Controlled
+Entities
+Subsidiaries
+Particulars
+55.2
+55.2
+185.8
+232.6
+38
+Limited (* 16,380)
+Zenotech Laboratories
+Purchase of Investment
+Limited
+163.5
+06 - 84
+STATUTORY REPORTS
+FINANCIAL STATEMENTS -
+Key Management
+Personnel
+NOTES
+85 - 206
+ANNEXURE "A"
+Skisen Labs Private
+FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+4313
+110533
+750.0
+43.9
+4.1
+39.8
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+132.0
+98.8
+82.1
+As at
+31st March, 2015
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Share Options Outstanding Account
+* in Million
+FINANCIAL STATEMENTS
+85 - 206
+Less: Transferred to Securities premium on account of exercise of
+options
+Amortisation during the year (Employee stock option expense, net of
+options forfeited and lapsed during the year)
+Pursuant to the Scheme of Amalgamation (Refer Note 54)
+Add:
+Opening Balance
+NOTES
+As at
+31st March, 2016
+750.0
+268.0
+Add: Transferred from Surplus in Consolidated Statement of Profit
+and Loss
+1,041.7
+Add: Transferred from General Reserve
+750.0
+Debenture Redemption Reserve
+Less: Transferred to General Reserve
+Closing Balance
+18,585.2
+750.0
+1,041.7
+Revaluation Reserve
+Opening Balance
+48.9
+Closing Balance
+Opening Balance
+39.8
+Add: Pursuant to the Scheme of Amalgamation (Refer Note 54)
+Less: Utilised during the year
+39.8
+Closing Balance
+154
+18,220.3
+Closing Balance
+5,519.3
+Opening Balance
+35,578.0
+34,828.0
+43.8
+43.8
+43.8
+0.9
+Closing Balance
+1.1
+0.9
+Foreign Currency Translation Reserve
+Opening Balance
+29,878.3
+19,899.6
+Add:
+Pursuant to the Scheme of Amalgamation (Refer Note 54)
+Effect of Foreign Exchange rate variations during
+13,255.5
+6,646.9
+3,331.8
+the year
+Closing Balance
+account on exercise of options
+750.0
+982.5
+82.1
+31,041.2
+328.4
+34,828.0
+Add:
+Pursuant to the Scheme of Amalgamation (Refer Note 54)
+Transferred from Debenture Redemption Reserve
+750.0
+Less:
+Transferred to Debenture Redemption Reserve
+Adjustment by way of reduction from reserves on account of
+Amalgamation (Refer Note 54)
+Closing Balance
+Amalgamation Reserve
+General Reserve
+Opening Balance
+Add: Pursuant to the Scheme of Amalgamation (Refer Note 54)
+Closing Balance
+Legal Reserve
+Opening Balance
+Add: Transferred from Surplus in Consolidated Statement of Profit
+0.9
+0.2
+and Loss (Created in accordance with the requirement of Local Law of
+an overseas subsidiary)
+205.5
+205.0
+43.8
+328.4
+72,855.6
+3,079.7
+In terms of our report attached
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+RAJESH K. HIRANANDANI
+Partner
+Mumbai, 30th May, 2016
+UDAY V. BALDOTA
+Chief Financial Officer
+Mumbai
+SUNIL R. AJMERA
+Company Secretary
+Mumbai
+For and on behalf of the Board
+DILIP S. SHANGHVI
+Managing Director
+New York
+SUDHIR V. VALIA
+Wholetime Director
+Mumbai
+SAILESH T. DESAI
+Wholetime Director
+Mumbai
+Date: 30th May, 2016
+153
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+See accompanying notes 1 to 63 forming part of the Consolidated Financial Statements
+As at
+31st March, 2016
+Number of
+Shares
+72,855.6
+Cash and Cash Equivalents at the end of the Year (Refer Note 18)
+(7,216.8)
+(3,104.8)
+Tax on Dividend
+(1,469.7)
+(528.0)
+Net Cash Flow used in Financing Activities (C)
+(19,243.2)
+(11,865.3)
+Net Increase in Cash and Cash Equivalents (A+B+C)
+3,901.5
+15,634.7
+Cash and Cash Equivalents at the beginning of the Year
+43,133.8
+43,587.0
+Cash and Cash Equivalents taken over on acquisition of Subsidiaries
+214.3
+91.9
+Pursuant to the Scheme of Amalgamation (Refer Note 54)
+Effect of Exchange Differences on Restatement of Foreign Currency Cash and Cash
+Equivalents
+4,224.6
+12,426.1
+1,115.9
+81,196.0
+* in Million
+As at
+31st March, 2015
+Number of
+Shares
+RESERVES AND SURPLUS(*)
+Capital Reserve
+Opening Balance
+268.0
+259.1
+Add:
+Pursuant to the Scheme of Amalgamation (Refer Note 54)
+Transferred from Surplus in Consolidated Statement of Profit and Loss
+as per the Local Law of an overseas subsidiary
+188.9
+7.0
+1.9
+Closing Balance
+456.9
+Securities Premium Account
+Opening Balance
+18,220.3
+Add:
+Pursuant to the Scheme of Amalgamation (Refer Note 54)
+Received on Shares issued during the year
+Transferred from employees stock options outstanding
+232.9
+132.0
+14,218.0
+2
+31st March, 2015
+As at
+As at
+31st March, 2016
+in Million
+1
+SHARE CAPITAL
+Authorised
+Equity Shares of 1 each
+5,990,000,000
+5,990.0
+Cumulative Preference shares of 100 each
+100,000
+5,990,100,000
+10.0
+6,000
+594.2
+5,990,000,000
+100,000
+5,990,100,000
+10.0
+6,000
+Issued, Subscribed and Fully Paid Up
+Equity Shares of 1 each (Refer Note 33)
+2,406,605,118
+2,406,605,118
+2,406.6
+2,406.6
+2,071,163,910
+2,071,163,910
+2,071.2
+2,071.2
+* in Million
+5,990.0
+29,878.3
+2,237.1
+SUN
+Loans Repayable on Demand
+Secured
+From Bank (Refer Note 58)
+Unsecured
+From Bank
+Other Loans and Advances
+Secured
+Term Loan from Bank (Refer Note 58)
+Unsecured
+From Bank
+Commercial Paper
+2,560.5
+2,739.0
+48,040.8
+46,808.1
+204.5
+1,407.9
+1,407.9
+52,213.7
+232.1
+12,500.0
+12,500.0
+62,279.2
+SHORT-TERM BORROWINGS
+157
+7
+23.0
+Trade/Security Deposits Received
+212.7
+219.7
+Interest accrued but not due on borrowings
+4.9
+3.4
+Others(*)
+2,019.5
+1,630.1
+(*) Includes contractual and expected milestone obligations
+1,863.4
+6
+LONG-TERM PROVISIONS
+Employee Benefits (Refer Notes 41 and 42)
+2,353.9
+MTM Loss on outstanding Forward Contracts / Derivatives
+Instruments
+1,894.6
+253.5
+Income Tax (Net of Advance Income Tax)
+Others (Refer Note 50)
+19.1
+18,424.0
+20,797.0
+23,152.3
+25,323.4
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+72.8
+65.7
+3,584.1
+3,258.5
+2,086.3
+1,226.8
+719.1
+17.7
+374.5
+15.8
+112.0
+226.6
+2,243.2
+3,424.6
+11,192.4
+22,795.9
+9
+SHORT-TERM PROVISIONS
+Employee Benefits (Refer Note 41)
+1,631.5
+Dividends Paid
+320.3
+439.2
+21.9
+32.7
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+8 OTHER CURRENT LIABILITIES
+Current Maturities of Long-term Debt (Refer Note 57)
+Current Maturities of Finance Lease Obligations (Refer Note 57)
+Interest Accrued but not Due on Borrowings
+Unclaimed Unpaid Dividends
+Statutory Remittances
+Payables on Purchase of Fixed Assets
+10.2
+Trade/Security Deposits Received
+Temporary Overdrawn Bank Balance as per books
+Others (*)
+(*) Includes claims, recall charges, contractual and expected milestone
+obligations, trade and other commitments.
+As at
+31st March, 2016
+As at
+* in Million
+31st March, 2015
+1,770.7
+13,975.8
+Advances from Customers
+155
+Trade Payables
+5
+1,469.7
+Transferred to Debenture Redemption Reserve
+Transferred to Capital Reserve as per the Local Law of an overseas
+subsidiary
+1,041.7
+188.9
+1.9
+Transferred to Legal Reserve in accordance with the requirement of
+Local Law of an overseas subsidiary
+0.2
+Deferred Tax in respect of earlier years related to an overseas
+subsidiary
+40.4
+Closing Balance
+212,746.2
+311,635.6
+169,714.7
+253,825.9
+(*) During the previous year, pursuant to the scheme of arrangement duly approved by the relevant Hon'ble High Courts, the debit balance in the Statement of Profit and Loss of 34,102.7 Million
+in the books of the Transferor Company on the close of March 31, 2014 had been adjusted by the Transferor Company by reduction of its Capital Reserve and Securities Premium Account of
+*1,762.0 Million and 32,340.7 Million respectively. The remaining balance of ₹3,079.7 Million in the Securities Premium Accounts of the Transferor Company as at close of March 31, 2014 had been
+taken over by the Holding Company (Transferee Company) and was included in Securities Premium Account, as on April 1, 2014, being the appointed date of the amalgamation referred in note 54.
+3
+LONG-TERM BORROWINGS
+(Refer Note 57)
+Secured
+Term Loans
+156
+in Million
+490.0
+As at
+31st March, 2016
+Corporate Dividend Tax
+7,219.5
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+As at
+* in Million
+31st March, 2015
+As at
+31st March, 2016
+Surplus in Consolidated Statement of Profit and Loss
+Opening Balance
+169,714.7
+117,759.5
+Add:
+Pursuant to the Scheme of Amalgamation (Refer Note 54)
+15,292.9
+Profit for the Year
+47,159.1
+45,393.8
+Less:
+Dividend proposed to be distributed to equity
+2,406.8
+Shareholders [1.0 (Previous Year 3.0) per share]
+As at
+31st March, 2015
+From Banks
+As at
+31st March, 2015
+4
+DEFERRED TAX LIABILITIES (NET)
+Deferred Tax Liabilities
+Depreciation on Fixed Assets
+Others
+4,141.0
+190.1
+4,331.1
+4,523.6
+186.3
+4,709.9
+Less:
+Deferred Tax Assets
+Unpaid Liabilities
+537.6
+Unabsorbed Depreciation / Carried forward Losses [Refer Note 47(a)]
+Others
+2,160.0
+489.4
+2,820.0
+1,017.4
+3,715.0
+616.1
+647.4
+3,956.8
+753.1
+As at
+31st March, 2016
+* in Million
+FINANCIAL STATEMENTS
+85 - 206
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+From Another Party
+77.3
+77.3
+327.4
+77.3
+404.7
+Long-term Maturities of Finance Lease Obligations
+Unsecured
+715.8
+793.1
+2.2
+406.9
+Redeemable Non-Convertible Debentures
+OTHER LONG-TERM LIABILITIES
+10,000.0
+From Banks
+20,374.2
+From Other Parties
+20,374.2
+31,167.3
+12,764.2
+513.1
+13,277.3
+13,684.2
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+NOTES
+Term Loans
+(3,503.9)
+4,768.9
+Finance Costs (includes borrowing costs capitalised)
+56,679.9
+67,958.9
+51,061.3
+Cash and Cash Equivalents
+Short-term Loans and Advances
+Other Current Assets
+18
+19
+139,892.5
+26,403.9
+109,980.4
+64,236.3
+21,932.5
+3,001.3
+308,645.7
+542,195.5
+28,329.1 289,157.5
+487,985.0
+Total
+See accompanying notes 1 to 63 forming part of the Consolidated Financial Statements
+In terms of our report attached
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+RAJESH K. HIRANANDANI
+Partner
+20
+21,174.3
+7,152.8
+567
+11
+5,933.2
+5,988.7
+Deferred Tax Assets (Net)
+12
+21,875.2
+18,269.5
+Long-term Loans and Advances
+13
+29,360.3
+26,805.0
+Other Non-current Assets
+Current Assets
+Current Investments
+Inventories
+Trade Receivables
+14
+964.0 233,549.8
+553.5
+198,827.5
+15
+16
+17
+Mumbai, 30th May, 2016
+150
+UDAY V. BALDOTA
+Chief Financial Officer
+Mumbai
+Total Revenue
+288,866.8
+279,396.7
+Expenses
+Cost of Materials Consumed
+23
+23
+43,881.3
+41,586.9
+Purchases of Stock-in-Trade
+25,429.2
+24,659.9
+Changes in Inventories of Finished Goods,
+(4,478.6)
+Work-in-Progress and Stock-in-Trade
+Employee Benefits Expense
+Finance Costs
+Depreciation and Amortisation Expense
+Other Expenses
+22222
+24
+1,144.9
+25
+5,476.6
+Non-current Investments
+6,169.7
+2,731.3
+273,920.1
+SUNIL R. AJMERA
+Company Secretary
+Mumbai
+For and on behalf of the Board
+DILIP S. SHANGHVI
+Managing Director
+New York
+SUDHIR V. VALIA
+Wholetime Director
+Mumbai
+SAILESH T. DESAI
+Wholetime Director
+Mumbai
+Date: 30th May, 2016
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+CONSOLIDATED STATEMENT OF PROFIT AND LOSS
+FOR THE YEAR ENDED 31ST MARCH, 2016
+Revenue from Operations
+Less: Excise Duty
+Other Income
+Note No.
+21
+Year ended
+31st March, 2016
+285,177.0
+2,479.9
+in Million
+Year ended
+31st March, 2015
+276,651.4
+282,697.1
+22
+37,009.6
+41,811.1
+35
+Note No.
+31st March, 2016
+As at
+* in Million
+31st March, 2015
+Share Capital
+1
+2,406.6
+Share Suspense Account
+54
+Reserves and Surplus
+2
+311,635.6
+Share Application Money Pending Allotment
+43(b)
+314,042.2
+6.7
+2,071.2
+334.8
+253,825.9
+256,231.9
+Minority Interest
+40,852.5
+149.0
+28,511.9
+Non-current Liabilities
+Long-term Borrowings
+As at
+Deferred Tax Liabilities (Net)
+Shareholders' Funds
+AS AT 31ST MARCH, 2016
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of
+management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection
+of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial
+statements.
+INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
+Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
+or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
+Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to
+the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions,
+or that the degree of compliance with the policies or procedures may deteriorate.
+OPINION
+In our opinion to the best of our information and according to the explanations given to us, the Holding Company, its
+subsidiary companies and its associate company, which are companies incorporated in India, have, in all material respects,
+an adequate internal financial controls system over financial reporting and such internal financial controls over financial
+reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria
+established by the Company considering the essential components of internal control stated in the Guidance Note on Audit
+of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
+OTHER MATTERS
+Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial
+controls over financial reporting insofar as it relates to 12 subsidiary companies (excluding a subsidiary company under
+liquidation) and an associate company, which are companies incorporated in India, is based on the corresponding reports of
+the auditors of such companies incorporated in India.
+Place: Mumbai
+Date: 30th May, 2016
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+(Firm's Registration No. 117366W/W-100018)
+RAJESH K. HIRANANDANI
+Partner
+(Membership No. 36920)
+149
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+CONSOLIDATED BALANCE SHEET
+EQUITY AND LIABILITIES
+47,971.3
+Other Long-term Liabilities
+3456
+34,174.7 132,476.6
+542,195.5
+43,527.6 161,468.1
+487,985.0
+ASSETS
+Non-current Assets
+Fixed Assets
+Tangible Assets
+10A
+75,559.2
+Intangible Assets
+10B
+40,708.5
+Capital Work-in-Progress
+12,034.6
+Intangible Assets under Development
+5,303.7
+133,606.0
+69,751.8
+20,063.3
+15,317.7
+5,068.4
+110,201.2
+Goodwill on Consolidation (Net)
+Total
+Long-term Provisions
+9
+22,795.9
+31,167.3
+616.1
+13,684.2
+753.1
+2,237.1
+20,797.0
+1,863.4
+54,817.5
+25,323.4
+41,624.1
+Current Liabilities
+Short-term Borrowings
+7
+52,213.7
+62,279.2
+Trade Payables
+Total outstanding dues of micro enterprises and small
+111.4
+109.6
+enterprises
+Total outstanding dues of creditors other than micro
+enterprises and small enterprises
+34,784.4
+32,755.8
+Other Current Liabilities
+8
+11,192.4
+Short-term Provisions
+45,026.4
+26
+1,717.2
+3,411.3
+Other Liabilities
+(634.6)
+2,030.9
+Provisions
+(860.6)
+5,035.7
+Cash Generated from Operations
+87,578.4
+73,561.0
+Net Income Tax Paid
+(19,884.6)
+(17,403.6)
+Net Cash Flow from Operating Activities (A)
+67,693.8
+56,157.4
+CASH FLOW FROM INVESTING ACTIVITIES
+Capital Expenditure on Fixed Assets, including Capital Advances
+(33,824.6)
+(23,418.8)
+Proceeds from Sale of Fixed Assets
+706.0
+501.0
+1,990.4
+Loans/Inter Corporate Deposits
+Trade Payables
+(398.2)
+0.0
+163.2
+166.8
+(70.3)
+(1,223.6)
+(7,033.7)
+84,922.8
+71,765.1
+Provision for other-than-temporary diminution in value of non-current investment
+Reversal for diminution in value of current investments
+Effect of exchange rate changes
+Changes in working capital:
+Operating Profit Before Working Capital Changes
+Adjustments for (Increase) / Decrease in Operating Assets:
+Inventories
+(1,667.4)
+1,896.9
+Trade Receivables
+(18,088.7)
+(10,464.2)
+Loans and Advances
+(2,830.1)
+283.5
+Other Assets
+24,746.6
+Adjustments for Increase / (Decrease) in Operating Liabilities:
+205.0
+Given / Placed
+(5,045.7)
+5,120.3
+Year ended
+31st March, 2015
+79,183.7
+(96,644.8)
+11,982.2
+(42,315.3)
+46,731.2
+41,879.5
+(10,713.6)
+(3,194.6)
+2,465.9
+2,885.2
+(79.1)
+10.0
+502.9
+(44,549.1)
+8.1
+0.2
+(28,657.4)
+82,945.3
+(90,764.9)
+662.1
+1.6
+Payment to Minority - Repurchase of shares by subsidiary / dividend payment
+(495.2)
+Proceeds from Allotment of Equity Shares on Exercise of Stock Options / Share
+Application Money received
+91.3
+748.7
+in Million
+Received back / Matured
+(66,025.5)
+Repayment of Borrowings
+Purchase of Investments [including Associate ₹16,380 (Previous Year Nil)]
+Proceeds from Sale of Investments
+(400,890.1)
+416,414.1
+(9,029.6)
+3,719.0
+(288,018.9)
+288,405.9
+152
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+CONSOLIDATED CASH FLOW STATEMENT
+FOR THE YEAR ENDED 31ST MARCH, 2016
+Net Increase in Cash Credit Facilities and Working Capital Demand Loans
+Proceeds from issue of shares to Minority by Subsidiary
+Bank Balances not considered as Cash and Cash Equivalents
+Fixed Deposits / Margin Money Placed
+Fixed Deposits / Margin Money Matured
+Acquisition of Companies/business unit (Refer Note 60)
+Interest Received
+Purchase of Fixed Assets given under Finance Lease
+Receipt of rental on Fixed Assets given under Finance Lease
+Dividend Received
+Net Cash Flow used in Investing Activities (B)
+CASH FLOW FROM FINANCING ACTIVITIES
+Proceeds from Borrowings
+Year ended
+31st March, 2016
+(2,995.3)
+98.8
+1,519.6
+9,349.0
+58,303.8
+(7,332.4)
+9,146.9
+54,882.1
+Share in Loss of Associates (Net)
+18.7
+Profit after Tax before adjustment for Minority Interest
+Share of Profit attributable to Minority Interest
+58,285.1
+11,126.0
+Profit for the Year attributable to the Shareholders of
+the Company
+47,159.1
+125.6
+54,756.5
+9,362.7
+45,393.8
+Earnings per Share (Face Value per Equity share - * 1)
+37
+Basic (in)
+Diluted (in)
+19.6
+19.6
+18.9
+18.9
+See accompanying notes 1 to 63 forming part of the Consolidated Financial Statements
+In terms of our report attached
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+Profit after Tax before Share in Loss of Associates (Net)
+and Minority Interest
+RAJESH K. HIRANANDANI
+16,479.3
+Deferred Tax Credit (Net)
+5,789.9
+10
+10,135.2
+11,947.2
+27
+86,655.0
+82,835.0
+Total Expenses
+214,362.3
+212,990.2
+Profit Before Exceptional Item and Tax
+Exceptional Item
+51
+51
+74,504.5
+(6,851.7)
+66,406.5
+Profit Before Tax
+67,652.8
+(2,377.5)
+64,029.0
+Tax Expense:
+Current Tax (Net)
+56
+11,954.6
+(2,605.6)
+416.1
+Partner
+For and on behalf of the Board
+Provision for other-than-temporary diminution in value of non-current investment in an
+Associate (16,380)
+Year ended
+31st March, 2016
+67,652.8
+* in Million
+Year ended
+31st March, 2015
+64,029.0
+10,135.2
+11,947.2
+5,474.9
+1,448.5
+1,001.1
+(400.4)
+267.5
+4,768.9
+5,789.9
+(2,659.3)
+(2,568.1)
+(502.9)
+(0.2)
+(1,381.3)
+(2,074.0)
+(175.2)
+(307.6)
+Expense on Employee Stock Option Scheme
+Mumbai, 30th May, 2016
+Provision for Doubtful Trade Receivables/Advances / Sundry Balances / Trade
+Receivables written off (net)
+Net Gain on Sale of Investments
+DILIP S. SHANGHVI
+UDAY V. BALDOTA
+Chief Financial Officer
+Mumbai
+SUNIL R. AJMERA
+Company Secretary
+Mumbai
+Managing Director
+New York
+SUDHIR V. VALIA
+Wholetime Director
+Mumbai
+SAILESH T. DESAI
+Wholetime Director
+Mumbai
+Date: 30th May, 2016
+151
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+CONSOLIDATED CASH FLOW STATEMENT
+CASH FLOW FROM OPERATING ACTIVITIES
+Profit Before Tax
+Adjustments for:
+Depreciation and Amortisation Expense
+Provision for Impairment of Fixed Assets
+(including amount considered in exceptional items)
+Impairment of Goodwill on Consolidation
+(including amount considered in exceptional items)
+(Profit) /Loss on Sale / Write off of Fixed Assets (net)
+(including amount considered in exceptional items)
+Finance Costs
+Interest Income
+Dividend Income
+Sundry Balance Written back (net)
+MTM Loss on outstanding Forward Contracts / Derivative Instruments
+FOR THE YEAR ENDED 31ST MARCH, 2016
+5,392.9
+220.8
+158
+43,527.6
+34,174.7
+21,836.6
+Provision Others (Refer Note 50)
+1,469.7
+26,972.6
+Corporate Dividend Tax
+7,219.5
+2,406.8
+Dividend proposed to be distributed to Equity Shareholders
+5,891.7
+2,453.0
+490.0
+Income Tax (Net of Advance Income Tax)
+PHARMA
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Provision for other-than-temporary diminution in value of
+non-current investment
+Provision for other-than-temporary diminution in value of
+non-current investment in an associate (* 16,380)
+Impairment of Goodwill on Consolidation
+Provision for Impairment of Fixed Asset
+(*) Previous Year includes fees to the Statutory auditors of erstwhile Ranbaxy
+Laboratories Limited as auditors - 27.0 Million
+Less:
+Receipts from Research Activities
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+@includes 0.7 Million (Previous Year 1.8 Million) in respect of previous year.
+Year ended
+31st March, 2016
+166.8
+0.0
+Miscellaneous Expenses
+― ANNUAL REPORT 2015-16
+0.6
+165
+Payment to Auditors
+For Audit @
+For Taxation Matters
+For Other Services
+Reimbursement of Expenses
+193.3
+198.8
+16.6
+16.1
+46.7
+12.6
+0.9
+257.5
+in Million
+228.1
+SUN
+Year ended
+511.2
+163.2
+4,236.4
+93.5
+Power and Fuel
+347.8
+487.4
+Rates and Taxes
+Rent
+Insurance
+Repairs and Maintenance
+Buildings
+Machinery
+Others
+Printing and Stationery
+Travelling and Conveyance
+104.0
+3,443.1
+367.8
+368.6
+459.9
+1,001.1
+968.3
+9,771.9
+87,593.6
+(938.6)
+86,655.0
+9,431.6
+83,558.3
+(723.3)
+82,835.0
+31st March, 2015
+28 RESEARCH AND DEVELOPMENT EXPENDITURE
+INCLUDED IN THE CONSOLIDATED STATEMENT OF
+PROFIT AND LOSS
+4,872.2
+4,691.8
+Contribution to Provident and Other Funds
+Staff Welfare Expenses
+Consumption of Stores, Spare Parts and Other Materials
+Conversion and Other Manufacturing Charges
+441.7
+Salaries and Wages
+1,577.3
+Increase (Decrease) of Excise Duty on Inventories
+(63.3)
+Selling and Distribution
+Commission and Discount
+Repairs and Maintenance
+Buildings
+Machinery
+Others
+Printing and Stationery
+1,332.5
+1,433.2
+2,052.1
+2,279.5
+1,215.9
+1,119.4
+20,739.7
+20,852.9
+Insurance
+Rates and Taxes
+Rent
+5,607.7
+62.6
+3,007.3
+67.3
+Net loss on foreign currency transactions and translation
+2,294.5
+4,768.9
+2,715.3
+5,789.9
+1,440.5
+27 OTHER EXPENSES
+5,633.7
+6,235.5
+Conversion and Other Manufacturing Charges
+4,439.8
+4,131.7
+Power and Fuel
+5,454.4
+Consumption of Stores, Spare Parts and Other Materials
+Net Loss on Foreign Currency Transactions and Translation (Other
+than considered as Finance Cost)
+1,511.1
+611.0
+Sundry Balances / Trade Receivables Written off (Net)
+Less: Adjusted out of Provision for earlier years
+245.7
+(38.4)
+437.2
+157.9
+Professional, Legal and Consultancy
+Donations
+1,519.6
+18,957.2
+173.9
+(179.0)
+416.1
+(*)16,518.3
+109.8
+Loss on Sale / Write Off of Fixed Assets
+155.8
+271.2
+88.3
+115.4
+1,312.3
+Provision for Doubtful Trade Receivables / Advances
+Provision/Write off for Doubtful Trade Receivables/Advances
+829.0
+2,084.3
+1,922.1
+1,362.8
+3,980.9
+1,438.6
+3,971.7
+359.2
+533.8
+409.9
+Overseas Travel and Export Promotion
+Communication
+1,779.9
+1,701.3
+5,201.4
+4,431.0
+757.0
+Travelling and Conveyance
+136.9
+66.6
+39.1
+378.7
+Receivable on Account of Assets given under Finance Lease
+[Refer Note 40(e)]
+1.9
+694.5
+2.7
+Less: Provision for Doubtful Loans and Advances
+40.3
+1,429.6
+1.9
+1,471.8
+697.2
+2.7
+Considered Doubtful
+694.5
+Considered Good - Unsecured
+Considered Good - Secured
+Loans and Advances to Other Parties (including Employees)
+3,770.5
+441.2
+1,469.9
+389.3
+66.2
+Prepaid Expenses
+Advance Income Tax (Net of Provisions)
+Interest Accrued on Investments
+(Unsecured - Considered Good)
+14 OTHER NON-CURRENT ASSETS
+26,805.0
+29,360.3
+698.1
+11,039.6
+7,517.0
+1,382.8
+96.6
+777.2
+Advance for supply of goods and services
+1,080.0
+Balances with Government Authorities
+7,517.0
+MAT Credit Entitlement (Refer Note 56)
+14,226.5
+114.2
+4,181.4
+390.8
+73.4
+3,770.5
+66.2
+3,836.7
+232.1
+534.5
+21,875.2
+344.0
+190.5
+18,501.6
+1,441.7
+22,409.7
+1,479.3
+4,357.6
+4,929.9
+3,282.9
+2,954.7
+97.2
+590.1
+9,322.2
+12,455.7
+232.1
+18,269.5
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+4,254.8
+73.4
+4,181.4
+Security Deposits
+Less: Provision for Doubtful Loans and Advances
+Considered Doubtful
+As at
+31st March, 2015
+48.9
+As at
+31st March, 2016
+FINANCIAL STATEMENTS
+85 - 206
+Considered Good
+Capital Advances
+(Unsecured - Considered Good unless stated otherwise)
+13 LONG-TERM LOANS AND ADVANCES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+in Million
+Receivable towards forward contracts / derivative instruments
+Others
+616.5
+418.5
+0.6
+Miscellaneous Expenses
+1,566.9
+22,242.4
+1,530.1
+18,372.8
+Less:
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+161
+-
+1,349.0
+1,287.5
+19,886.9
+349.0
+Loss on Sale / Write off of Fixed Assets
+5313.1
+9,933.4
+Professional, Legal and Consultancy
+45.5
+Other borrowing costs
+45.4
+253.0
+192.1
+230.2
+549.8
+313.0
+6,839.8
+267.8
+37.9
+46.9
+319.5
+257.2
+Communication
+80.9
+76.1
+505.3
+173.5
+Market Value
+Book Value Market Value
+Unquoted
+In Bonds
+In Debentures
+In Equity Instruments
+Quoted
+B) Other Current Investments (At Lower of Cost and Fair Value)
+In Mutual Funds (*)
+Current Portion of Long-term Investments (At Cost)
+Unquoted
+A)
+15 CURRENT INVESTMENTS
+(*) Includes receivable towards sale of manufacturing facility.
+553.5
+964.0
+86.1
+347.5*
+In Mutual Funds
+In Commercial Paper
+Aggregate Value of Investments
+Quoted
+524.3
+21,174.3
+7,152.8
+1,224.4
+12,404.9
+5,365.4
+1,287.5
+179.0
+Book Value
+313.0
+993.6
+114.9
+98.6
+6,957.6
+250.0
+* Listed
+Unquoted
+214.4
+2,411.8
+45,026.4
+26 FINANCE COSTS
+02 - 05
+STATUTORY REPORTS
+06 - 84
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+FINANCIAL STATEMENTS
+85 - 206
+* in Million
+As at
+31st March, 2016
+As at
+31st March, 2015
+19 SHORT-TERM LOANS AND ADVANCES
+(Unsecured - Considered Good unless stated otherwise)
+Loans and Advances to a Related Party
+Considered Good
+Considered Doubtful
+238.0
+512.0
+274.0
+CORPORATE OVERVIEW
+-
+162
+(*) Other Bank Balances include Deposits amounting to * 46,848.6
+Million (Previous Year 28,052.4 Million) and Margin Monies include
+* 97.3 Million (Previous Year 96.1 Million) which have an Original
+Maturity of more than 12 Months.
+81,034.4
+81,196.0
+249.7
+72,670.3
+72,855.6
+Other Bank Balances
+In Deposit Accounts (*)
+58,536.2
+36,957.8
+512.0
+In Earmarked Accounts:
+Balances held as Margin Money or Security against
+Guarantees and Other Commitments (*)
+63.0
+97.3
+58,696.5
+58.5
+108.5
+37,124.8
+139,892.5
+109,980.4
+Unpaid Dividend Accounts
+1,166.4
+512.0
+512.0
+2,727.3
+Security Deposits
+177.8
+Balances with Government Authorities
+7,855.3
+Advance Income-Tax [Net of Provisions]
+1,499.7
+130.1
+6,537.4
+199.2
+Advances for Supply of Goods and Services
+Considered Good
+3,455.3
+Considered Doubtful
+184.2
+3,639.5
+2,680.0
+Prepaid Expenses
+10,261.6
+4.5
+274.0
+238.0
+Loans and Advances to Other Parties (including Employees)
+Secured Considered Good
+409.0
+3,360.6
+Unsecured Considered Good
+Less: Provision for Doubtful Loans and Advances
+10,316.2
+Unsecured Considered Doubtful
+4.5
+10,729.7
+4.5
+10,266.1
+Less: Provision for Doubtful Loans and Advances
+4.5
+10,725.2
+6,901.0
+Less: Provision for Doubtful Loans and Advances
+Receivable on Account of Assets under Finance Lease
+[Refer Note 40(e)]
+In EEFC Accounts
+52,982.6
+26,885.4
+Goods-in-Transit
+Other Materials and Consumables
+Goods-in-Transit
+Stock-in-trade
+Goods-in-Transit
+Finished Goods
+Work-in-Progress
+Goods-in-Transit
+Raw and Packing Materials
+16 INVENTORIES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+356.1
+24,076.6
+353.2
+19,436.2
+17 TRADE RECEIVABLES
+(Unsecured - Considered Good unless stated otherwise)
+Outstanding for a period exceeding six months from the
+date they are due for payment
+Considered Good
+Considered Doubtful
+10,780.4
+12,096.2
+20,211.9
+19,607.9
+604.0
+21,403.1
+20,336.1
+1,067.0
+As at
+31st March, 2015
+5,400.7
+As at
+31st March, 2016
+Balances that meet the definition of Cash and Cash
+18 CASH AND CASH EQUIVALENTS
+Less: Provision for Doubtful Trade Receivables
+Considered Doubtful
+Considered Good
+Other Trade Receivables
+Less: Provision for Doubtful Trade Receivables
+* in Million
+57,517.4
+14,903.2
+5,183.5
+5,706.4
+48,390.7
+169.9
+64,952.1
+48,390.7
+169.9
+64,782.2
+67,958.9
+48,390.7
+51,061.3
+Equivalents as per AS 3 Cash Flow Statement
+Cash on Hand
+Cheques on Hand
+18.0
+143.6
+20.9
+164.4
+Balances with Banks
+In Current Accounts
+In Deposit Accounts with Original Maturity less than 3 Months
+64,782.2
+2,670.6
+1,276.8
+3,176.7
+283.2
+5,466.7
+951.6
+783.4
+2.4
+954.0
+1.3
+305.7
+64,236.3
+3,176.7
+2,670.6
+1,754.4
+1,276.8
+4931.1
+3,947.4
+1754.4
+784.7
+56,679.9
+184.2
+3,455.3
+10.6
+1,828.9
+185.1
+2,014.0
+185.1
+Inventories at the beginning of the year
+20,211.9
+12,619.5
+Pursuant to the Scheme of Amalgamation (Refer note 54)
+7,736.9
+Inventories Acquired on Acquisition (Refer note 60)
+3,724.3
+Purchases during the year
+40,929.5
+Foreign currency translation difference
+418.7
+Inventories at the end of the year
+(21,403.1)
+43,881.3
+80.4
+41,298.6
+Raw and Packing Materials:
+5,476.6
+6,169.7
+221.7
+Miscellaneous Income
+23 COST OF MATERIALS CONSUMED
+871.5
+509.8
+1,381.3
+520.2
+1,553.8
+2,074.0
+63.4
+(20,211.9)
+591.7
+175.2
+307.6
+284.7
+74.5
+243.9
+226.8
+330.7
+3.7
+Lease Rental and Hire Charges
+41,586.9
+WORK-IN-PROGRESS AND STOCK-IN-TRADE
+Contribution to Provident and Other Funds
+Expense on Employee Stock Option Schemes
+Staff Welfare Expenses
+Year ended
+31st March, 2016
+40,144.3
+3,959.6
+98.8
+3,768.6
+47,971.3
+FINANCIAL STATEMENTS
+85 - 206
+* in Million
+Year ended
+31st March, 2015
+37,645.7
+3,671.1
+205.0
+3,504.6
+31st March, 2015
+Salaries and Wages
+25 EMPLOYEE BENEFITS EXPENSE
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+Inventories at the beginning of the year
+35,683.3
+Pursuant to the Scheme of Amalgamation (Refer note 54)
+17,806.0
+19,567.2
+Foreign currency translation difference
+1,717.3
+(545.0)
+24 CHANGES IN INVENTORIES OF FINISHED GOODS,
+Inventories at the end of the year
+(35,683.3)
+(4,478.6)
+1,144.9
+164
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+(41,879.2)
+Insurance Claims
+Sundry Balances Written Back (Net)
+Profit on Sale of Fixed Assets
+774.9
+Export Incentives receivable
+Fixed Assets held for Sale
+Others*
+1,936.4
+350.6
+425.0
+3,001.3
+1,500.4
+255.4
+25,618.8
+28,329.1
+(*) Current year includes receivable towards sale of manufacturing facility and previous year includes receivable from a third party, which has agreed to
+bear damages paid by a subsidiary on account of patent infringement in consideration of the Group agreeing to sell them pharmaceutical products at a
+negotiated discounted price for a specified period.
+163
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+88.8
+4.9
+151.5
+Less: Provision for Doubtful on Interest Accrued and due on loans
+Receivable towards forward contracts / derivative instruments
+1,828.9
+10.0
+26,403.9
+21,932.5
+20 OTHER CURRENT ASSETS
+(Unsecured - Considered Good unless stated otherwise)
+Interest Accrued on Investments / Balances with Banks
+Interest Accrued and due on loans
+PHARMA
+Considered Good
+284.4
+88.8
+90.8
+Considered Doubtful
+151.5
+156.4
+88.8
+4.9
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+21 REVENUE FROM OPERATIONS
+Long-term Investments
+59.9
+119.5
+Fixed Assets Given Under Finance Lease
+37.2
+31.6
+Others
+5.4
+200.9
+511.2
+Dividend Income on Long-term Investments
+502.9
+2,568.1
+0.2
+Net Gain on Sale of:
+Current Investments
+Long-term Investments
+2,659.3
+Interest Expense
+65.0
+1,060.5
+839.9
+Sale of Products
+Other Operating Revenues
+22 OTHER INCOME
+Interest Income on:
+Deposits with Banks
+Year ended
+31st March, 2016
+279,921.5
+Current Investments
+5,255.5
+285,177.0
+Year ended
+31st March, 2015
+275,182.0
+1,469.4
+276,651.4
+1,263.3
+Loans and Advances
+1,033.0
+* in Million
+As at
+Others
+* in Million
+Buildings Given
+Building
+137.8
+153.7
+22.2
+2.9
+0.8
+18.5
+175.9
+12.8
+6.8
+156.3
+Improvement on
+153.7
+215.6
+213.1
+11.3
+224.4
+419
+lease*
+165.6
+171.2
+41.9
+0.5
+1.4
+40.0
+38.3
+213.1
+205.6
+under operating
+171.2
+179.9
+44.5
+0.5
+2.1
+7.5
+Plant and Equipment
+0.4
+1.3
+731.2
+884.0
+78.1
+13.6
+45.9
+746.4
+1615.2
+734.6
+43.6
+78.6
+758.4
+Buildings taken
+14,274.1
+29,570.8
+9,640.5
+12.0
+under Finance
+33.3
+742.6
+22.2
+253.9
+0.9
+66.4
+12.5
+175.9
+Leasehold
+15.2
+Lease*
+746.4
+17.5
+70.8
+661.9
+31.2
+758.4
+17.5
+12.0
+31.9
+79,307.2
+156.7
+Operating Lease*
+21.2
+22.4
+23.3
+3.2
+4.4
+17.5
+15
+0.5
+4.1
+45.7
+3.2
+22.9
+0.7
+25.3
+CORPORATE OVERVIEW
+02-05
+06 - 84
+STATUTORY REPORTS
+85 - 206
+FINANCIAL STATEMENTS -
+959.7
+(109.5)
+556.8
+781.6
+617.6
+755.7 (b)
+134.0
+Given under
+211.7 (b)
+669.5
+1,373.3
+239.4
+166.0
+(4.4)
+1,451.1
+Vehicles
+8.5
+1,973.4
+22.4
+33,598.0
+1.2
+1,426.1
+34,246.7
+(203.7)
+(b)
+33,598.0
+37,256.7
+53,981.9
+1,240.2
+8,094.3 (b)
+101.1
+1,317.7
+45,709.2
+91,238.8
+1,636.3
+11,437,8
+7,005.0
+1,654.5
+79,307.2
+21,494.5
+20.4
+7.1
+3.1
+1.1
+23.3
+21.6
+25.3
+16,993.1
+1.2
+Plant and Equipment
+45,709.2
+1,228.9
+8,138.6
+508.1
+16,849.3
+(52.4)
+45.7
+282.5
+1,092.6
+2,843.5
+10 FIXED ASSETS
+Interest Income [Net of Interest expense on borrowings 1.6 Million
+2.1
+2.7
+(Previous Year 1.1 Million)]
+Receipts from Research Activities
+938.6
+723.3
+Miscellaneous Income
+13.9
+954.6
+21,287.8
+14.0
+740.0
+17,632.8
+166
+-
+in Million
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Particulars
+Pursuant to Taken over on For the year
+Amalgamation # acquisition ^
+Adjustments
+Consolidation
+As at
+01.04.15
+31.03.16
+Adjustments
+Adjustments
+CORPORATE OVERVIEW
+As at
+Additions @ /
+Taken over on
+acquisition^
+Pursuant to
+Amalgamation #
+Consolidation
+Adjustments
+As At
+01.04.15
+Depreciation/Amortisation / Impairment
+Gross Block
+Deletions/
+On
+02 - 05
+FINANCIAL STATEMENTS
+85 - 206
+PHARMA
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+168
+||
+Basis of Accounting
+III
+IV
+These Consolidated Financial Statements are prepared under historical cost convention on an accrual basis
+in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the
+Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of
+the Companies Act, 2013. The accounting policies adopted in the preparation of the Consolidated Financial
+Statements are consistent with those followed in the previous year.
+Use of Estimates
+The presentation of Consolidated Financial Statements in conformity with the generally accepted accounting
+principles in India requires estimates and assumptions to be made that affect the reported amount of assets and
+liabilities on the date of the financial statements and the reported amount of revenues and expenses during the
+reporting period. Difference between the actual result and estimates are recognised in the period in which the
+results are known / materialised.
+Fixed Assets and Depreciation / Amortisation
+Fixed Assets including Intangible assets are stated at historical cost (Net of cenvat credit) less accumulated
+depreciation / amortization thereon and impairment losses, if any. With regard to tangible assets, the Holding
+Company and its Indian subsidiaries have adopted the useful lives of fixed assets as indicated in Part C of Schedule
+Il of the Companies Act, 2013 and amendment thereto vide notification dated August 29, 2014 issued by Ministry
+of Corporate Affairs. In case of the Holding Company and Sun Pharma Laboratories Limited assets costing * 5,000
+or less and in case of Sun Pharmaceutical Spain, SL. and Sun Pharmaceuticals Italia S.R.L assets costing
+€ 601 and € 516.4 or less respectively are charged off as expense in the year of purchase. Intangible assets consist
+of trademarks, designs, technical know-how, non compete fees and other intangible assets including computer
+software and goodwill.
+Revalued tangible fixed assets are carried at fair value less accumulated depreciation/impairment. In case
+of revaluation of tangible fixed assets, any increase in net book value arising on revaluation is credited to the
+revaluation reserve, except to the extent that it reverses a revaluation decrease of the same asset previously
+recognised as a charge in the Consolidated Statement of Profit and Loss, in which case the increase is credited to
+the Consolidated Statement of Profit and Loss. A decrease in net book value arising on revaluation is recognised as
+a charge in the Consolidated Statement of Profit and Loss, except to the extent it offsets an existing surplus on the
+same asset recognised in the revaluation reserve, in which case the decrease is recognised directly in that reserve.
+Depreciation for the period is recognised in the Consolidated Statement of Profit and Loss.
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+SUN
+167
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+29 SIGNIFICANT ACCOUNTING POLICIES:
+I
+Basis of Consolidation:
+The Consolidated Financial Statements relate to Sun Pharmaceutical Industries Limited ('the Holding Company'),
+its Subsidiaries (together constitute 'the Group'), associates and Jointly Controlled Entities. The Consolidated
+Financial Statements have been prepared on the following basis:
+(a) The Financial Statements of the Holding Company and its Subsidiaries have been consolidated on line-by-
+line basis by adding together the book values of like items of assets, liabilities, income and expenses, after
+eliminating intra-group balances, intra-group transactions and unrealised profits or losses as per Accounting
+Standard 21 'Consolidated Financial Statements, as prescribed under section 133 of the Companies Act,
+2013 and the relevant provisions of the Companies Act, 2013. These Consolidated Financial Statements
+have been prepared using uniform accounting policies for like transactions and other events in the similar
+circumstances.
+STATUTORY REPORTS
+06 - 84
+Investments in associates have been accounted for by the equity method of consolidation from the date
+on which it falls within the definition of associates as per Accounting Standard (AS) - 23 "Accounting for
+Investments in Associates in Consolidated Financial Statements".
+(b) In case of foreign Subsidiaries / Jointly Controlled Entities, both non-integral and integral foreign operations,
+translation of financial statements for consolidation is done in accordance with the policy stated in Note X
+below.
+(c) The Consolidated Financial Statements of the Group include financial statements of certain subsidiaries
+prepared as of a different date from that of the Holding Company's financial statements. Adjustments
+for effects of significant transactions and events that have occurred between the date of the financial
+statements of these subsidiaries and the date of the Holding Company's financial statements are made in the
+Consolidated Financial Statements.
+(d) The excess of cost of investment in Subsidiaries / Jointly Controlled Entities over the share of equity in
+Subsidiaries/Jointly Controlled Entities as at the date of making the investment is recognised in the financial
+statements as Goodwill on Consolidation. Goodwill on consolidation is not amortised. However, the same
+is tested for impairment at each Balance Sheet date. The excess of share of equity of Subsidiaries / Jointly
+Controlled Entities over the cost of acquisition of the respective investments as at the date of making the
+investment is treated as Capital Reserve. For this purpose, share of equity is determined on the basis of the
+latest financial statements prior to the acquisition after making necessary adjustments for material events
+between the date of such financial statements and the date of respective acquisition.
+(e) Minority Interest in the net assets of Subsidiaries consists of:
+i. the amount of equity attributable to the minorities at the date on which investment in Subsidiary is made,
+and
+ii.
+the minorities' share of movements in equity since the date the parent-subsidiary relationship came into
+existence.
+Interests in Jointly Controlled Entities has been accounted for by using the proportionate consolidation
+method as per AS 27- "Financial Reporting of Interests in Joint Ventures".
+198.5
+Deletions
+Net Block
+Asat
+31.03.16
+1,350.2
+Buildings
+1,139.0
+1,646.9
+232.9
+0.6
+23.6
+38.1
+5.1
+166.7
+1,879.8
+17.5
+6.9
+555.0
+29.7
+4,908.9
+733.6
+44,736.8
+9,640.5
+10.3
+5,527.5
+39,211.3
+128.7
+5,584.5
+1,049.0
+12,638.4
+1,305.7
+266.5
+(a)
+29,570.8
+30,910.4
+13,826.4
+559.1
+4,296.7 (b)
+448.3
+(b)
+As at
+31.03.16
+1,646.9
+268.1
+0.9
+2,064.1
+61.0
+140.5
+71.9
+1,912.7
+Freehold Land
+A. Tangible Assets
+year
+Year
+during the
+During the Year
+During the
+31.03.15
+Asat
+23.5 (b)
+24.4
+2,039.7
+1,912.7
+23.6
+11.6
+232.9
+1,946.7 (f)
+66.9
+Leasehold Land
+1,105.9
+1,678.6
+1,912.7
+27.8
+93.3
+82.3
+715.7
+(56.7)
+1,105.9
+(c)
+1,912.7
+As at
+31st March, 2016
+238.4
+186.3
+164.4
+86,505.0
+Previous Year
+2,932.5
+77,244.2
+3,011.7 209,998.3
+40,075.0
+448.5
+5,427.2
+167,059.3
+Total Fixed Assets
+7,139.5
+(157.8)
+7,774.5
+57.9 36,690.3
+65,032.0
+2,998.6
+14,619.1
+2,259.8 167,059.3
+Footnotes:
+49,826.6
+89,815.1
+77,244.2
+1,546.0
+116,267.7
+2,213.3 93,730.6
+927.6
+20,063.3
+23,720.5
+47.7
+1,617.1
+15,649.9
+11,947.2
+301.4
+117.3
+1,062.6
+29,403.6
+(301.6)
+36,678.4
+16,627.0
+(a) Buildings include 8,620 (Previous Year 8,620) towards cost of shares in a Co-operative Housing Society.
+323.7
+314.4
+76.8 16,643.6
+43.9 14,228.9
+798.7
+****
+656.6
+1,725.9 (b)
+1,446.7
+3.8
+26.9
+285.3 (b)
+258.3
+1,575.3 (b)
+1,358.8
+301.4
+4,970.5
+(132.4)
+7,774.5
+19,891.5
+53.2
+640.8
+25,924,4
+(b)
+5,662.6
+Assets
+22,619.3
+Previous Year
+Assets
+40,708.5
+19,865.1
+103.7
+2,353.9
+12,563.2
+987.9
+60,573.6
+132.8
+22,041.3
+243.7
+1,731.1
+36,690.3
+Total Intangible
+16,627.0
+323.7
+(b) Includes Impairment of 6,373.2 Million (Previous Year *858.5 Million) including 5,514.7 Million (Previous Year Nil) on account of Impairment for the year, of which 39.8 Million (Previous Year * Nil) is
+utilised from Revaluation Reserve.
+(d) Excludes Fixed Assets Held for Sale (Refer Note 20).
+8,674.3
+8,785.6
+Total
+3,776.9
+4,822.7
+Unquoted (at Cost)
+10,834.5
+4,897.4
+Book Value Market Value
+Book Value Market Value
+7,297.1
+3,962.9
+Quoted (at Cost)
+Aggregate Value of Investments
+5,988.7
+5,933.2
+Provision for other-than-temporary diminution in value of non-current
+investments (Quoted)
+(1,698.5)
+(1,698.5)
+Provision for other-than-temporary diminution in value of non-current
+investments (Unquoted)
+160
+Fixed assets
+Deferred Tax Liabilities
+Less:
+Others
+Intangibles
+Unabsorbed Loss [Refer Note 47(b)]
+540.9
+Unpaid Liabilities
+$ Includes Investment in Zenotech Laboretories Limited, an Associate where the carrying value is Nil (Previous Year Nil) [Net of provision for other than
+temporary diminution in value of investment ₹1,698.5 Million (Previous Year 1,698.5 Million)]. Also, the shares of this entity are thinly traded and therefore,
+market price has not been considered for the purpose of assessment of other-than-temporary diminution in the value of investment.
+#Includes Investment in Associates at carrying value: Daiichi Sankyo (Thailand) Limited ₹ 444.5 Million (Previous Year 440.2 Million) and Medinstill LLC
+*1,302.9 Million (Previous Year Nil) [Refer Note 30(w)].
+(2,685.6)
+(2,852.4)
+* At Cost less Provision for other-than-temporary diminution in value, if any.
+Total
+(987.1)
+(1,153.9)
+12 DEFERRED TAX ASSETS (Net)
+(c) Freehold land includes land valued at 25.5 Million (Previous Year 25.5 Million) pending registration in the name of the Holding Company.
+1,499.4
+115.7
+As at
+As at
+31st March, 2016
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+@Refer Note 60(b)
+^ Refer Note 60(a)
+# Refer Note 54
+*Refer Note 40
+(f) Deletions / Adjustments during the previous year includes refund received from authorities in respect of dismantling charges.
+(g) Borrowing cost capitalised during the year 162.1 Million (Previous Year 239.9 Million)
+-159
+(e) Previous Year figures are in Italics.
+* in Million
+31st March, 2015
+11 NON-CURRENT INVESTMENTS (*)
+Long Term Investments (Fully Paid Up)
+0.0
+0.0
+2,133.2
+2,053.7
+1,658.9
+636.1
+1,540.0
+115.7
+1,628.3
+In Debentures
+In Government Securities 10,000 (Previous Year * 10,000)
+In Equity Instruments (#)
+Unquoted
+In Debentures / Bonds
+In Equity Instruments ($)
+Quoted
+In Limited Liability Partnerships
+1,451.1
+7,065.7
+11,842.3
+(106.0)
+1,441.8
+(b)
+Fixtures
+1,307.3
+2,587.4
+125.7
+325.3 (b)
+1.4
+80.3
+2,306.1
+3,894.7
+130.9
+343.7
+3.2
+1,844.7
+112.8
+350.5
+66.9
+(0.1)
+Fixtures Given under
+0.6
+0.6
+0.6
+0.6
+Furniture and
+101.8
+1,270.8
+43.5
+399.4
+50.9
+1,026.9
+(59.4)
+931.8
+3,576.9
+2,306.1
+0.7
+3,576.9
+611.7
+26.9
+1,224.6
+2,054.6
+51.5
+235.8
+1.3
+32.7
+1,836.3
+Office Equipment
+781.6
+669.5
+132.6
+212.1
+475.1
+(71.4)
+1.2
+224.0 (b)
+43.1
+1,433.6
+1,224.6
+40.1
+385.2
+3.7
+351.1
+(9.8)
+534.5
+Furniture and
+1,836.3
+356.0
+4.7
+742.4
+(18.5)
+799.1
+(b)
+621.0
+47.4
+72.2
+0.6
+10
+32.4
+2,245.4
+Computer Software
+13,602.0
+14,127.5
+1,495.6 (b)
+951.4
+958.4
+(7.0)
+14,553.4
+3,516.1
+260.3
+10,777.0
+493.3 (b)
+50.9
+951.4
+134.1
+29.4
+2,382.5
+1,446.7
+and Other Intangible
+9162
+14,228.9
+103.4 42,568.0
+21,907.2
+872.7
+19,891.5
+15,623.1
+Trademarks, Designs
+(18.4)
+2,245.4
+4.7
+286.8
+1,981.4
+(18.1)
+20.8
+1,210.6
+(0.1)
+243.7
+14,553.4
+2,109.6 73,865.5
+13,296.0
+117.3
+1,944.6
+60,617.2
+149,424.7
+2,878.9
+18,033.7
+204.8
+3,696.1
+130,369.0
+Total Tangible
+Operating Lease*
+0.6
+0.7
+75,559.2
+Assets
+Previous Year
+63,885.7
+Goodwill
+B. Intangible Assets
+69,751.8
+60,617.2
+1,498.3
+10,330.1
+761.2
+826.0
+22,264.1
+28,903.9
+130,369.0
+2,201.9
+13,691.5
+2,674.9
+52,468.8
+(150.0)
+(143.8)
+Inventory and Other Related Items
+19,083.0
+21
+Peru
+100.00%
+100.00%
+96
+Ranbaxy (Poland) Sp. Zo.o.
+Poland
+100.00%
+100.00%
+97
+Ranbaxy Portugal - Com E Desenvolv DeProd
+Farmaceuticos Unipessoal Lda
+Portugal
+Ranbaxy-PRP (Peru) S.A.C.
+100.00%
+(see note j)
+98
+S.C Terapia S.A.
+Romania
+96.70%
+96.70%
+99
+AO Ranbaxy (Formerly known as ZAO Ranbaxy)
+100 Ranbaxy South Africa Proprietary Limited
+101 Ranbaxy Pharmaceutical Proprietary Limited
+102 Be-Tabs Investments Proprietary Limited
+103 Sonke Pharmaceuticals Proprietary Limited
+104 Laboratorios Ranbaxy, S.L.U.
+105 Ranbaxy (U.K.) Limited
+Russia
+100.00%
+100.00%
+South Africa
+100.00%
+100.00%
+95
+100.00%
+100.00%
+100.00%
+90
+Office Pharmaceutique Industriel Et Hospitalier
+France
+100.00%
+100.00%
+91 Basics GmbH
+Germany
+100.00%
+100.00%
+100.00%
+92
+Germany
+100.00%
+100.00%
+93
+Ranbaxy Ireland Limited
+Ireland
+100.00%
+100.00%
+94
+Ranbaxy Italia S.P.A
+Italy
+Ranbaxy GmbH
+Egypt
+100.00%
+100.00%
+100.00%
+110 Ranbaxy (Thailand) Company Limited
+Thailand
+100.00%
+100.00%
+111 Ranbaxy USA, Inc.
+United States of America
+100.00%
+(see note k)
+112 Ohm Laboratories Inc.
+United States of America
+100.00%
+100.00%
+113 Ranbaxy Laboratories, Inc.
+United States of America
+100.00%
+100.00%
+114 Ranbaxy Signature LLC
+United States of America
+67.50%
+67.50%
+115 Sun Pharmaceuticals Morocco LLC (Formerly
+known as Ranbaxy Morocco LLC)
+Morocco
+100.00%
+100.00%
+South Africa
+United States of America
+100.00%
+100.00%
+South Africa
+100.00%
+100.00%
+South Africa
+70.00%
+70.00%
+Spain
+100.00%
+100.00%
+United Kingdom
+109 Ranbaxy Pharmaceuticals, Inc.
+100.00%
+106 Ranbaxy Holdings (U.K.) Limited
+United Kingdom
+100.00%
+100.00%
+107 Ranbaxy Europe Limited
+United Kingdom
+100.00%
+100.00%
+108 Ranbaxy Inc.
+United States of America
+100.00%
+100.00%
+100.00%
+Rexcel Egypt LLC
+100.00%
+100.00%
+United States of America
+100.00%
+100.00%
+(see note u)
+76
+Dungan Mutual Associates, LLC
+United States of America
+100.00%
+100.00%
+77
+100.00%
+URL PharmPro, LLC
+100.00%
+100.00%
+78
+Universal Enterprises Private Limited
+India
+100.00%
+100.00%
+79
+Sun Pharma Switzerland Limited
+Switzerland
+100.00%
+United States of America
+100.00%
+United States of America
+75
+Dusa Pharmaceuticals, Inc.
+United States of America
+100.00%
+100.00%
+70 Dusa Pharmaceuticals New York, Inc.
+United States of America
+100.00%
+100.00%
+71 Sirius Laboratories Inc
+United States of America
+100.00%
+74 Mutual Pharmaceutical Company Inc.
+United Research Laboratories, Limited
+100.00%
+URL Pharma, Inc.
+United States of America
+100.00%
+100.00%
+(see note v)
+73
+AR Scientific.Inc
+United States of America
+100.00%
+100.00%
+(see note u)
+72
+89
+80
+India
+100.00%
+84
+Ranbaxy Australia Pty Ltd
+85
+Ranbaxy Belgium N.V.
+Australia
+Belgium
+100.00%
+100.00%
+100.00%
+100.00%
+(see note r)
+100.00%
+86
+Brazil
+100.00%
+100.00%
+87
+Ranbaxy Pharmaceuticals Canada Inc.
+Canada
+100.00%
+100.00%
+88 Ranbaxy Egypt LLC
+Egypt
+100.00%
+Ranbaxy Farmaceutica Ltda.
+Silverstreet Developers LLP
+United States of America
+83
+100.00%
+100.00%
+(see note o)
+174
+|
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+FINANCIAL STATEMENTS
+85 - 206
+PI Real Estate Ventures, LLC
+Name of Subsidiaries
+Proportion of ownership interest for
+the year ended
+31st March, 2016 31st March, 2015
+81
+82
+Sun Pharma East Africa Limited
+Pharmalucence, Inc.
+Kenya
+100.00%
+100.00%
+United States of America
+100.00%
+100.00%
+Country of Incorporation
+69
+116 "Ranbaxy Pharmaceuticals Ukraine" LLC
+117 Perryton Wind Power LLC
+118 Insite Vision Incorporated
+1)
+Estimated amount of contracts remaining to be executed on Capital Account
+(Net of Advances)
+9,085.0
+7,828.3
+II) Derivative related commitments - Forward Foreign Exchange Contracts
+(Refer Note 45)
+7,951.2
+11,250.0
+III) Lease related commitments [Refer Note: 40 (d) (i) and (e) (i)]
+IV) Investment related commitments
+C) Guarantees Given by the bankers on behalf of the Group
+D) Letters of Credit for Imports
+3,004.3
+Future cash outflows in respect of the above matters are determinable only on
+receipt of judgements / decisions pending at various forums / authorities.
+B) Commitments
+1,610.2
+2,894.4
+819.1
+776.9
+1,855.9
+1,489.2
+-
+177
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+246.6
+NOTES
+530.6
+302.7
+2,025.3
+23.3
+37.9
+624.3
+23.3
+ESIC Contribution on account of applicability
+0.2
+Service tax on certain services performed outside India under reverse charge basis
+Drug Price Equalisation Account [DPEA] on account of demand towards
+unintended benefit, enjoyed by the Group
+0.2
+156.0
+3,326.4
+3,248.0
+III) Trade committments
+Demand by JDGFT, import duty with respect to import alleged to be in excess of
+entitlement as per the Advanced Licence Scheme
+15.4
+Fine imposed for anti-competitive settlement agreement by European
+Commission
+773.0
+689.1
+Octroi demand on account of rate difference
+171.0
+171.0
+Alleged breach of social security code contested by French subsidiary (maximum
+penalty amount)
+124.8
+Other matters - employee/worker related cases, State Electricity Board, Punjab
+Land Preservation Act related matters etc.
+284.4
+15.4
+Excise Duty on account of Valuation / Cenvat Credit
+Environment cess
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+The Holding Company and/or its subsidiaries are involved in various legal proceedings including product liability,
+contracts, employment claims and other regulatory matters relating to conduct of its business. The respective
+Company records a provision in the financial statements to the extent that it concludes that a liability is probable and
+estimable based on the status of these cases, advise of the counsel, management assessment of the likely damages
+etc. The Group carries product liability insurance / is contractually indemnified by the manufacturer, for an amount it
+believes is sufficient for its needs. In respect of other claims, the Group believes, these claims do not constitute material
+litigation matters and with its meritorious defences the ultimate disposition of these matters will not have material
+adverse effect on its Consolidated Financial Statements.
+iii The movement of shares issued to ESOP trust at face value is as follows (previous year excluding share suspense
+account):
+Equity shares of * 1 each
+Shares allotted during the year pursuant to Scheme of
+Amalgamation (Refer Note 54)
+Add: Shares allotted to the ESOP trust
+Less: Shares issued on exercise of employee stock
+options by ESOP Trust
+Year ended
+31st March, 2016
+Year ended
+31st March, 2015
+No. of Shares
+* in Million
+2,071.2
+No. of Shares
+186,516
+0.2
+160,000
+0.1
+223,135
+0.2
+123,381
+0.1
+iv
+V
+At the end of the year
+* in Million
+32 LEGAL PROCEEDINGS
+2,406.6 2,071,163,910
+0.6
+33 DISCLOSURES RELATING TO SHARE CAPITAL
+¡
+Rights, Preferences and Restrictions attached to Equity Shares
+The Equity Shares of the Holding Company, having par value of 1 per share, rank pari passu in all respects including voting
+rights and entitlement to dividend.
+178
+ii
+Reconciliation of the number of shares and amount outstanding at the beginning and at the end of reporting period
+(previous year excluding share suspense account):
+Equity shares of * 1 each
+Opening Balance
+Add: Shares allotted during the year pursuant to the
+scheme of Amalgamation (Refer Note 54)
+2,406,605,118
+Add: Shares allotted to employees on exercise of
+Closing Balance
+Year ended
+31st March, 2016
+No. of Shares
+* in Million
+Year ended
+31st March, 2015
+No. of Shares
+in Million
+2,071,163,910
+334,770,248
+2,071.2
+334.8
+2,071,163,910
+2,071.2
+670,960
+employee stock options [excluding shares held by
+ESOP trust (Refer Note 33(iii))]
+100.00%
+26,706.7
+1,021.3
+50.00%
+50.00%
+(see note p)
+125 Artes Biotechnology GmbH
+United States of America
+Germany
+50.00%
+50.00%
+45.00%
+45.00%
+Name of Subsidiary of Jointly Controlled Entities
+126 MSD Sun FZ LLC
+United States of America
+Name of Associates
+128 Daiichi Sankyo (Thailand) Ltd.
+129 Medinstill LLC
+United Arab Emirates
+50%
+50.00%
+(see note p)
+India
+Thailand
+United States of America
+46.84%
+46.84%
+26.90%
+26.90%
+127 Zenotech Laboratories Limited
+19.99%
+100.00%
+India (see note i)
+119 Insite Vision Ltd.
+120 Thea Acquisition Corporation
+121 Zalicus Pharmaceuticals Limited
+Ukraine
+United States of America
+United States of America
+United Kingdom
+United States of America
+Canada
+100.00%
+100% (see note c)
+100% (see note c)
+100% (see note c)
+100.00%
+(see note c and t)
+100.00%
+(see note c and I)
+175
+SUN
+PHARMA
+100.00%
+― ANNUAL REPORT 2015-16
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+176
+Name of Subsidiaries
+Name of Partnership Firm
+Name of Jointly Controlled Entities
+123 MSD Sun LLC
+124 S&I Ophthalmic LLC
+Country of Incorporation
+Proportion of ownership interest for
+the year ended
+31st March, 2016
+31st March, 2015
+122 Solrex Pharmaceuticals Company
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+30,915.7
+38.8
+(see note w)
+C
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+t
+น
+V
+W
+X
+With effect from 20th August, 2015, Caraco Pharma Inc., has been merged with Sun Pharmaceutical Industries, Inc.
+y
+With effect from 28th April, 2015, URL Pharma Inc., has merged into Mutual Pharmaceutical Company, Inc.
+During the year, investment in Medinstill LLC has been determined as investment in associate.
+Significant Accounting Policies and other Notes to these Consolidated Financial Statements are intended to
+serve as a means of informative disclosure and a guide for better understanding of the consolidated position of
+the Group. Recognising this purpose, the Group has disclosed only such policies and notes from the individual
+financial statements which fairly represent the needed disclosures. Lack of homogeneity and other similar
+considerations made it desirable to exclude some of them, which in the opinion of the management, could be
+better viewed when referred from the individual financial statements.
+Disclosures mandated by the Companies Act, 2013 Schedule III Part II by way of additional information is given in
+Annexure A.
+As at
+in Million
+As at
+31st March, 2016
+31st March, 2015
+31 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT
+NOT PROVIDED FOR)
+A) Contingent Liabilities
+1) Claims against the Group not acknowledged as debts
+II) Liabilities Disputed - Appeals filed with respect to :
+Income Tax on account of Disallowances / Additions
+Sales Tax on account of Rebate / Classification
+1,127.5
+With effect from 2nd November, 2015, Thea Acquisition Corporation has been merged with Insite Vision Incorporated.
+With effect from 1st April, 2015, AR Scientific Inc. and United Research Laboratories Limited, have merged into
+URL Pharma Inc.
+b
+With effect from 1st March, 2016, Ranbaxy Belgium N.V. has been liquidated.
+- S
+d
+14
+In respect of entities at Sr. No. 5, 6, 7, 8, 9, 99, 116, 118, 119 and 125 the reporting date is as of 31st December, 2015
+and different from the reporting date of the Holding Company. In terms of Accounting Standard 21, adjustments have
+been made for significant transactions of these subsidiaries for the periods from 1st January, 2015 to 31st March, 2015
+and 1st January, 2016 to 31st March, 2016, on the basis of their management accounts for the said periods.
+Entities at Sr. No. 117 to 121 have been incorporated / acquired during the year ended 31st March, 2016.
+The Group holds voting power of 79.32% (beneficial ownership 68.98%) [Previous Year 79.24% (Beneficial
+ownership 68.87%)] in the share capital of TARO.
+With effect from 1st March, 2015 Sun Pharma MEA JLT merged with Sun Pharma Global FZE.
+With effect from 10th December, 2014 and 11th December, 2014, Orta Limited and Tarochem Limited have been
+liquidated respectively.
+g
+h
+With effect from 6th May, 2014, Sun Universal Limited and Khyati Realty ME Limited have been liquidated.
+With effect from 28th February, 2015 Aditya Pharma Private Limited has been liquidated.
+i
+j
+Solrex Pharmaceuticals Company is a partnership firm, in which two subsidiaries of the Holding Company are
+partners.
+r
+Ranbaxy Portugal - Com E Desenvolv DeProd Farmaceuticos Unipessoal Lda has been liquidated on
+30th June, 2015.
+With effect from 28th October, 2014, Ranbaxy USA, Inc. has been liquidated.
+m
+n
+○
+р
+9
+Zalicus Pharmaceuticals Limited was acquired during the year and subsequently amalgamated in Taro
+Pharmaceuticals Inc., on 5th October, 2015.
+Taro Pharmaceutical India Private Ltd. is under liquidation.
+During the previous year, entities at Sr. Nos. 18 to 24 and 84 to 116 have become subsidiaries, entities at Sr. Nos.
+127 and 128 have become associates and entity at the Sr. No. 122 have become partnership firm w.e.f. 1st April,
+2014 being the appointed date, pursuant to the amalgamation of erstwhile Ranbaxy Laboratories Limited (RLL)
+into the Holding Company.
+During the year, the Group has sold its investment in Silverstreet Developers LLP with effect from 1st April, 2015.
+MSD-Sun LLC and MSD-Sun FZ LLC are in the process of liquidation.
+With effect from 1st January, 2015, Sun Pharma Global Inc. merged with the Holding company and consequently
+Sun Pharma Holdings has become direct subsidiary of the Holding Company.
+k
+1,035,581,955 (upto the end of previous year 1,035,581,955) Equity Shares of ₹1 each have been allotted as fully
+paid up bonus shares during the period of five years immediately preceding the date at which the Balance Sheet is
+prepared.
+100.00%
+Sweden
+6
+Sun Pharma De Mexico S.A. DE C.V.
+Mexico
+75.00%
+75.00%
+7
+SPIL De Mexico S.A. DE C.V.
+Mexico
+100.00%
+100.00%
+8
+100.00%
+Sun Pharmaceutical Peru S.A.C.
+99.33%
+99.33%
+9
+OOO "Sun Pharmaceutical Industries" Limited
+Russia
+100.00%
+99.00%
+10
+Sun Pharma De Venezuela, C.A.
+Venezuela
+100.00%
+Peru
+100.00%
+100.00%
+100.00%
+The Consolidated Financial Statements comprise the consolidation of the financial statements of the Holding
+Company, its subsidiaries, associates and Jointly Controlled Entities, as under:
+Proportion of ownership interest for
+1
+2
+345
+Name of Subsidiaries
+Direct Subsidiaries
+Green Eco Development Centre Limited
+Sun Pharma Global Inc.
+Sun Pharmaceutical (Bangladesh) Limited
+Sun Pharmaceutical Industries, Inc.
+Sun Farmaceutica do Brasil Ltda.
+Country of Incorporation
+Brazil
+the year ended
+31st March, 2015
+India
+100.00%
+British Virgin Islands
+100.00%
+100.00%
+(see note q)
+Bangladesh
+72.50%
+72.50%
+United States of America
+100.00%
+31st March, 2016
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+11
+India
+17
+Softdeal Trading Company Private Limited
+India
+100.00%
+100.00%
+18
+Ranbaxy Pharmacie Generiques
+France
+100.00%
+100.00%
+19 Ranbaxy Drugs Limited
+(see note q)
+India
+100.00%
+20 Vidyut Investments Limited
+Gufic Pharma Limited
+22 Ranbaxy (Malaysia) Sdn. Bhd.
+23
+Ranbaxy Nigeria Limited
+24 Ranbaxy (Netherlands) B.V.
+Step down Subsidiaries
+25 Caraco Pharma Inc.
+India
+100.00%
+100.00%
+Sun Pharma Laboratories Ltd
+100.00%
+Mauritius
+100.00%
+100.00%
+12
+Faststone Mercantile Company Private Limited
+India
+100.00%
+100.00%
+13
+Neetnav Real Estate Private Limited
+India
+100.00%
+100.00%
+100.00%
+Realstone Multitrade Private Limited
+India
+100.00%
+100.00%
+15
+Skisen Labs Private Limited
+India
+100.00%
+100.00%
+16
+Sun Pharma Holdings
+14
+100.00%
+NOTES
+STATUTORY REPORTS
+06 - 84
+Intangible
+Trademarks, Designs, Technical know-how, Non compete fees and Other Intangible Assets including computer
+software (Refer Note 39)
+2-20
+V
+VI
+Leases
+Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with
+the lessor are recognised as operating lease. Lease rental income under operating leases is recognised in the
+Consolidated Statement of Profit and Loss on a straight-line basis over the lease term. Total lease rental in respect
+of an fixed asset taken on operating lease is charged to the Consolidated Statement of Profit and Loss on a straight
+line basis over the lease term. For assets given under finance lease, amounts are recognised as receivables at an
+amount equal to the net investment in the lease and the finance income is recognised based on a constant rate of
+return on the outstanding net investment in accordance with Accounting Standard (AS) 19 - "Leases".
+Assets leased by the Group in its capacity as a lessee, where substantially all the risk and rewards of ownership vest in
+the Group are classified as finance leases. Such leases are capitalised at the inception of the lease at the lower of the
+fair value and the present value of the minimum lease payments. Liability is created for an equivalent amount.
+Revenue Recognition
+Sale of products is recognized when risks and rewards of ownership of the products are passed on to the
+customers, which is generally on dispatch of products. Export sales are recognized depending on the terms
+of customer arrangements, which is recognized either when the product is received by the customer at the
+destination point or at the time of shipment. Sales include delayed payment charges, and are stated net of returns,
+VAT / sales tax, provision for chargebacks, medicaid, rebates, shelf stock adjustments, discounts, breakages
+and expiry and other sales deductions, made on the basis of management expectation taking into account past
+experience, customer experience, third-party prescription data, industry and regulatory changes and other relevant
+information which are revised as necessary. Other operating income is recognised on an accrual basis and where
+applicable in accordance with the terms of the relevant agreements.
+VII Investments
+Investments are classified into Current and Long-term Investments. Current Investments are valued at lower of cost
+and fair value. Long-term Investments are stated at cost less provision, if any, for other than temporary diminution
+in value.
+2-17
+VIII Inventories
+- 169
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+IX
+X
+in-trade specific identification method is applied and in respect of certain other materials and consumables FIFO
+method is applied. In respect of Sun Pharmaceutical Industries Inc, cost is determined on specific identification
+basis; in respect of Alkaloida Chemical Company Zrt, Sun Pharmaceutical Industries (Australia) Pty. Ltd., Ranbaxy
+Pharmacie Generiques SAS and Sun Pharmaceutical (Bangladesh) Ltd., cost is determined on FIFO basis and in
+respect of Taro Pharmaceutical Industries Ltd, cost is determined on average cost basis.
+Research and Development
+Inventories consisting of raw and packing materials, other materials and consumables including R&D materials,
+work-in-progress, stock-in-trade and finished goods are stated at lower of cost and net realisable value. The cost is
+determined based on weighted average method, except in case of certain raw and packing materials and stock-
+The research and development cost is accounted in accordance with Accounting Standard (AS) - 26 'Intangible
+Assets'. All related revenue expenditure incurred on original and planned investigation undertaken with the
+prospect of gaining new scientific or technical knowledge and understanding up to the time when it is possible
+to demonstrate probable future economic benefits, is recognised as research expenses and charged off to
+the Consolidated Statement of Profit and Loss, as incurred. All subsequent expenditure incurred for product
+development on the application of research findings or other knowledge upon demonstration of probability of
+future economic benefits, prior to the commencement of production, to the extent identifiable and possible
+to segregate are accumulated and carried forward as development expenditure under Intangible assets under
+development, to be capitalised as an intangible asset on completion of the project. In case a project does
+not proceed as per expectations / plans, the same is abandoned and the amount classified as development
+expenditure under Intangible assets under development is charged off to the Consolidated Statement of Profit
+and Loss.
+2-21
+2-15
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Depreciation / amortisation is provided on Tangible and Intangible assets on straight line method as follows:
+Tangible
+Leasehold Land
+Leasehold Improvements
+Buildings
+3-15
+Buildings Taken under finance lease
+Plant and Equipment
+Plant and Equipment Leased
+Vehicles
+Office Equipments
+Furniture and Fixtures
+Years
+50-196
+3-10
+5-100
+10-40
+30
+3-25
+Buildings Given under operating lease
+FINANCIAL STATEMENTS
+85 - 206
+Foreign Currency Transactions and Translation
+The translation of the financial statements of non integral foreign operations is accounted for as under:
+(e) Actuarial gains and losses are recognised in the Consolidated Statement of Profit and loss in the year in which
+they arise.
+171
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+XIV Employee Stock Option Based Compensation
+With respect to employee stock option, the fair value of the options is calculated by using Black Scholes pricing
+model, in respect of the number of options that are expected to ultimately vest. Such cost is recognised on a
+straight line basis over the vesting period. Adjustment, if any, for difference in initial estimate for number of options
+that are expected to ultimately vest and related actual experience is recognised in the Consolidated Statement
+of Profit and Loss of that period. In respect of vested options that expire unexercised, the cost is reversed in the
+Consolidated Statement of Profit and Loss of that period.
+XV Borrowing Costs
+(d) Liability for accumulated compensated absences of employees being other long term employee benefit is
+ascertained for on actuarial valuation basis by an independent valuer and provided for as per the Group rules.
+Borrowing costs attributable to the acquisition or construction of qualifying assets upto the date of capitalisation of
+such assets are capitalised and added to the cost of asset. Other borrowing costs are recognised as an expense in
+the period in which they are incurred.
+Provisions are recognised only when there is a present obligation as a result of past events and it is probable
+that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate of
+the amount of the obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will
+be confirmed only by future events not wholly within the control of the Group or (ii) Present obligations arising
+from past events where it is not probable that an outflow of resources will be required to settle the obligation or
+a reliable estimate of the amount of the obligation cannot be made. Contingent Assets are not recognised in the
+Consolidated Financial Statements.
+XVII Government Grants / Subsidy
+Government grants, if any, are accounted when there is a reasonable assurance that the enterprise will comply
+with the conditions attached to them and it is reasonably certain that the ultimate collection will be made. Capital
+subsidy in the nature of government grants related to specific fixed assets is accounted for where collection is
+reasonably certain and the same is shown as a deduction from the gross value of the asset concerned in arriving
+at its book value and accordingly the depreciation is provided on the reduced book value.
+XVIII Impairment of Assets
+The Group assesses at each Balance Sheet date whether there is any indication that an asset may be impaired.
+Intangible assets that are amortised over a period exceeding ten years from the date when the asset is available
+for use are tested for impairment each financial year even if there is no indication the asset is impaired. If any such
+indication exists, the Group estimates the recoverable amount of the asset. If such recoverable amount of the asset
+or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount,
+the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is
+recognised in the Consolidated Statement of Profit and Loss. If at the Balance Sheet date there is an indication
+that if a previously assessed impairment loss no longer exists or may have decreased, the recoverable amount is
+reassessed and the asset is reflected at the lower of recoverable amount and the carrying amount that would have
+been determined had no impairment loss been recognised. Such reversal of impairment loss is recognised in the
+Consolidated Statement of Profit and Loss.
+XIX Operating Cycle
+Based on the nature of products / activities of the Company and the normal time between acquisition of assets
+and their realisation in cash or cash equivalents, the Company has determined its operating cycle as twelve months
+for the purpose of classification of its assets and liabilities as current and non-current.
+172
+CORPORATE OVERVIEW
+02 - 05
+XVI Provisions, Contingent Liabilities and Contingent Assets
+Transactions denominated in foreign currencies are recorded at the exchange rates that approximate the actual
+rate prevailing at the date of transaction. Monetary items denominated in foreign currency at the year end are
+translated at year end rates. Non-monetary items, which are carried in terms of historical cost denominated in a
+foreign currency, are reported using the exchange rate at the date of transaction. In respect of forward exchange
+contracts relating to monetary items as at the balance sheet date, the difference between the year end rate and the
+rate on the date of the contract is recognised as exchange difference and the premium on such forward contracts
+is recognised over the life of the forward contract. The exchange differences arising on settlement / translation are
+recognised in the Consolidated Statement of Profit and Loss.
+(c) Pension plan, a defined benefit retirement plan, provides for lump sum payment to eligible employees at
+retirement. The pension liability, determined on actuarial basis by an independent valuer, is charged to the
+Consolidated Statement of Profit and Loss.
+(a) The Group's contribution in respect of provident fund and other funds is charged to the Consolidated
+Statement of Profit and Loss each year. With respect to certain employees, contribution is made to the
+provident fund trust maintained by the Group. Provident fund liability for the trust is as determined on
+actuarial basis by the independent valuer is charged to the Consolidated Statement of Profit and Loss.
+a)
+All revenues and expenses are translated at average rate.
+b) All monetary and non-monetary assets and liabilities are translated at the rate prevailing on the balance sheet.
+c) Resulting exchange difference is accumulated in Foreign Currency Translation Reserve on Consolidation until
+the disposal of the net investment in the said non integral foreign operation.
+The translation of the financial statements of integral foreign operations is accounted for as under:
+a) Non-monetary Balance Sheet items are translated using the exchange rate at the date of transaction i.e., the
+date when they were acquired.
+b) Monetary Balance Sheet items are translated using closing rates at Balance sheet date.
+170
+c)
+Profit and Loss items are translated at the average rate.
+CORPORATE OVERVIEW
+(b) With respect to gratuity liability, some of the entities in the Group contributes to Life Insurance Corporation of
+India (LIC) under LIC's Group Gratuity policy, except for certain employees, the gratuity benefit of retirement
+plan where contribution is made to a gratuity fund established as a trust. Gratuity liability as determined on
+actuarial basis by the independent valuer is charged to the Consolidated Statement of Profit and Loss.
+02 - 05
+FINANCIAL STATEMENTS
+85 - 206
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+XI
+d) The net exchange difference resulting from the translation of items in the financial statements of foreign
+integral operations is recognised as income or expense for the period.
+Derivative Accounting
+Derivative Instruments entered into for hedging the foreign currency fluctuation risk/ interest rate risk are
+accounted for on the principles of prudence as enunciated in Accounting Standard (AS) 1 "Disclosure of
+Accounting Policies". Pursuant to this, losses, if any, on Mark to Market basis, are recognised in the Consolidated
+Statement of Profit and Loss and gains are not recognised.
+XII Taxes on Income
+Provision for tax comprises of Current Tax and Deferred Tax. Current Tax provision is made on the basis of reliefs
+and deductions available under relevant Tax laws. Deferred tax resulting from "timing differences" between taxable
+and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted
+as on the balance sheet date. The deferred tax asset is recognised and carried forward for timing differences
+only to the extent that there is a reasonable certainty that the assets can be realised in future. However, if there
+is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is virtual
+certainty that there will be sufficient future taxable income available to realise the assets. Deferred tax assets are
+reviewed as at each balance sheet date for their realisability.
+For Indian entities, Minimum Alternate Tax ('MAT') under the provisions of the Income Tax Act, 1961 is recognised
+as current tax in the Consolidated Statement of Profit and Loss. The credit available under the Income Tax Act,
+1961 in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence
+that the respective entities will pay normal income tax during the period for which the MAT credit can be carried
+forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each Balance
+Sheet date and written down to the extent the aforesaid convincing evidence no longer exists.
+XIII Employee Benefits
+STATUTORY REPORTS
+06 - 84
+100.00%
+India
+100.00%
+United States of America
+68.98%
+68.87%
+52
+Taro Pharmaceuticals North America, Inc.
+Cayman Islands, British
+68.98%
+68.87%
+West Indies
+53
+Taro Pharmaceuticals Europe B.V.
+68.87%
+Netherlands
+68.87%
+54
+Taro Pharmaceuticals Ireland Limited
+Ireland
+68.98%
+68.87%
+55
+Taro International Ltd.
+56
+Taro Pharmaceuticals (UK) Limited
+57
+68.98%
+Taro Hungary Intellectual Property Licensing
+68.98%
+68.87%
+Sun Pharma Healthcare FZE
+United Arab Emirates
+100.00%
+100.00%
+46
+Sun Pharma MEA JLT
+United Arab Emirates
+100%
+(see note e)
+47
+48
+Canada
+Morley & Company, Inc.
+49 Taro Pharmaceutical Industries Ltd. (TARO)
+50 Taro Pharmaceuticals Inc.
+51 Taro Pharmaceuticals USA, Inc.
+United States of America
+100.00%
+100.00%
+United Arab Emirates
+100.00%
+100.00%
+Israel (See note d)
+68.98%
+Sun Laboratories FZE
+45
+Israel
+68.87%
+Canada
+68.98%
+68.87%
+63 Taro Pharmaceutical India Private Limited
+64
+Orta Ltd.
+India (see note m)
+Israel
+68.98%
+68.87%
+68.87%
+(see note f)
+62 Taro Pharmaceuticals Canada, Ltd.
+566
+United Arab Emirates
+100% (see note g)
+Khyati Realty ME Ltd.
+United Arab Emirates
+100% (see note g)
+67
+Aditya Pharma Private Limited
+Hungary
+100% (see note h)
+68
+Alkaloida Sweden AB
+Sun Universal Ltd.
+68.98%
+68.87%
+United States of America
+United Kingdom
+68.98%
+68.87%
+Hungary
+68.98%
+68.87%
+Limited Liability Company
+58
+3 Skyline LLC
+United States of America
+68.98%
+68.98%
+68.87%
+One Commerce Drive LLC
+United States of America
+68.98%
+68.87%
+60
+Tarochem Limited
+Israel
+68.87%
+(see note f)
+61
+Taro Pharmaceutical Laboratories Inc
+59
+100.00%
+100.00%
+Japan
+31 Aditya Acquisition Company Ltd.
+Hungary
+United Kingdom
+Australia
+99.99%
+99.99%
+100.00%
+100.00%
+100.00%
+100.00%
+Israel
+100.00%
+Sun Pharmaceutical Industries (Australia) Pty
+Limited
+100.00%
+33
+Sun Pharmaceutical Industries (Europe) B.V.
+Sun Pharmaceuticals Italia S.R.L.
+Netherlands
+100.00%
+100.00%
+Italy
+100.00%
+100.00%
+34 Sun Pharmaceutical Spain, S.L.U.
+Spain
+100.00%
+32
+100.00%
+100.00%
+United States of America
+Malaysia
+71.22%
+71.22%
+Nigeria
+Netherlands
+85.31%
+85.31%
+100.00%
+100.00%
+United States of America
+100.00%
+100.00%
+100.00%
+(see note s)
+26
+Chattem Chemical, Inc.
+27
+The Taro Development Corporation
+28
+Alkaloida Chemical Company Zrt.
+29 Sun Pharmaceuticals UK Limited
+30
+United States of America
+100.00%
+100.00%
+239
+100.00%
+35
+Germany
+-
+173
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Name of Subsidiaries
+Country of Incorporation
+Proportion of ownership interest for
+the year ended
+100.00%
+31st March, 2016 31st March, 2015
+Sun Global Development FZE
+United Arab Emirates
+100.00%
+100.00%
+43
+Caraco Pharmaceuticals Private Limited
+India
+100.00%
+100.00%
+44
+Sun Pharma Japan Ltd.
+42
+Sun Pharmaceuticals Germany GmbH
+100.00%
+100.00%
+100.00%
+100.00%
+36
+Sun Pharmaceuticals France
+France
+100.00%
+100.00%
+37
+Sun Pharma Global FZE
+United Arab Emirates
+100.00%
+100.00%
+100.00%
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+South Africa
+100.00%
+100.00%
+40
+39 Sun Global Canada Pty Ltd.
+Sun Pharma Philippines, Inc.
+41 Sun Pharmaceuticals Korea Ltd.
+Canada
+100.00%
+100.00%
+Philippines
+Korea
+38
+334,956,764 (Previous Year Nil) Equity shares of ₹ 1 each have been allotted during the year pursuant to scheme of
+Amalgamation without payment being received in cash (Refer Note 54).
+30 a)
+STATUTORY REPORTS
+06 - 84
+2.2
+223.7
+later than one year and not later than five years
+21.9
+32.7
+not later than one year
+Present value of minimum lease payments payable aggregate
+0.6
+610.1
+later than five years
+Less: Unearned Finance charges
+later than five years
+2.2
+569.5
+later than one year and not later than five years
+22.5
+134.6
+The future minimum lease payments under non-cancellable finance lease
+not later than one year
+Group as lessee
+(i)
+654.5
+(e) Finance lease
+492.1
+The future minimum lease payments under non-cancellable finance lease
+41
+270.00-703.00
+496.0
+Weighted-average
+remaining contractual
+life (years)
+3.3
+3.3
+1,169,586
+270.00-703.00
+496.0
+(ii) Group as lessor
+3.3
+270.00-703.00
+518.9
+(111,022)
+610,739
+610,739
+270.00-703.00
+165.8
+later than one year and not later than five years
+47.3
+46.8
+not later than one year
+(447,825)
+496.0
+86.1
+later than five years
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+180
+(c) Lease receipts/payments are recognised in the Consolidated Statement of Profit and Loss under "Lease Rental
+and Hire Charges" and "Rent" in Note 22 and Note 27.
+(b) The Group has obtained certain premises for its business operations (including furniture and fittings, therein as
+applicable) under operating lease or leave and license agreements. These are generally not non-cancellable and
+range between 11 months to 10 years under leave and licenses, or longer for other lease and are renewable by
+mutual consent on mutually agreeable terms. The Group has given refundable interest free security deposits in
+accordance with the agreed terms.
+40 (a) The Group has given certain premises and Plant and Machinery under operating lease or leave and license
+agreements. These are generally not non-cancellable and periods range between 11 months to 10 years under
+leave and license / lease and are renewable by mutual consent on mutually agreeable terms. The Group has
+received refundable interest free security deposits, where applicable, in accordance with agreed terms.
+FINANCIAL STATEMENTS
+85 - 206
+39 Intangible assets consisting of trademarks, designs, technical knowhow, licences, non compete fees and other intangible
+assets are stated at cost of acquisition based on their agreements and are available to the Group in perpetuity. The
+amortisable amount of intangible assets is arrived at, based on the management's best estimates of useful lives of such
+assets after due consideration as regards their expected usage, the product life cycles, technical and technological
+obsolescence, market demand for products, competition and their expected future benefits to the Group.
+279,921.5
+Sale of Products
+275,182.0
+69,797.3
+205,384.7
+75,947.6
+203,973.9
+Outside India
+India
+Secondary Segment (by Geographical Segment)
+The Group has identified "Pharmaceuticals" as the only primary reportable business
+segment.
+In view of the interwoven / intermix nature of business and manufacturing facility, other segmental information is not ascertainable.
+67.6
+Year ended
+* in Million
+Year ended
+31st March, 2015
+85.1
+107.9
+later than one year and not later than five years
+58.6
+28.0
+The future minimum lease payments under non-cancellable operating lease
+not later than one year
+(ii) Group as lessor
+149.5
+209.2
+31st March, 2016
+later than five years
+840.1
+later than one year and not later than five years
+602.8
+596.3
+The future minimum lease payments under non-cancellable operating lease
+not later than one year
+Group as lessee
+(i)
+Operating lease
+(d)
+833.1
+Primary Segment
+270.00-703.00
+Weighted-
+average exercise
+prices (*)
+31st March, 2016 31st March, 2015
+7.54%
+N.A.
+7.80%
+1.50%
+2%-3%
+1.40%
+2%-3%
+N.A.
+N.A.
+14.00 to 25.30
+years
+19.00 to 26.20
+31st March, 2016 31st March, 2015
+years
+lives mortality
+(2006-08)
+Indian assured
+lives mortality
+(2006-08)
+5% of mortality
+Table INSEE F
+2008-2010
+Table INSEE F
+2008-2010
+rate
+N.A.
+N.A.
+15%-18%
+58-60 years
+62-65 Years
+Indian assured
+0% - 20%
+Year ended
+(Unfunded)
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+The following table sets out the assumptions used in actuarial valuation of pension and retirement pension payment
+plan:
+Particulars
+Discount rate
+Rate of increase
+in compensation
+levels ##
+Year ended
+Expected average
+remaining working
+(years)
+Mortality
+Disability
+Withdrawal
+Retirement age
+Pension
+(Unfunded)
+Year ended
+Year ended
+Retirement pension payment plan
+lives of employees
+1,169,545
+62 - 65 Years
+## The salary increase takes account of inflation, seniority, promotion and other relevant factors on long term basis.
+Pursuant to the Scheme of Amalgamation, Sun Pharmaceutical Industries Limited ('transferee company')
+formulated two Employee Stock Option Schemes, namely, (i) SUN Employee Stock Option Scheme-2015 (SUN-
+ESOS 2015) to administer ESOS 2005 (ii) SUN Employee Stock Option Plan-2015 (SUN-ESOP 2015) to administer
+ESOP 2011. These scheme provides that the number of transferee options issued shall equal to the product of
+number of transferor options outstanding on effectiveness of Scheme multiplied by the Share exchange ratio
+(0.80) and each transferee option shall have an exercise price per equity share equal to transferor option exercise
+price per equity shares divided by the share exchange ratio (0.80) and fractions rounded off to the next higher
+whole number. The terms and conditions of ESOSS of transferee company are not less favourable than those of
+ESOSS of erstwhile RLL. No new grants shall be made under these schemes and these schemes shall operate only
+for the purpose of administering the excursive of options already granted/vested on an employee pursuant to
+SUN-ESOS 2015 and SUN-ESOP 2015.
+187
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+The movement of the options (post split) granted under SUN-ESOS 2015 for the current year is given below:
+In accordance with the above approval of issuance of options, stock options have been granted from time to time.
+The stock options outstanding as on 30th June, 2005 are proportionately adjusted in view of the sub-division of
+equity shares of the erstwhile RLL from the face value of 10 each into 2 equity shares of 5 each.
+Outstanding at the commencement of the year
+Number of options - post-merger of erstwhile
+RLL with the transferee Company
+Total Number of options outstanding
+Exercised during the year $
+Lapsed during the year
+Stock options Range of exercise
+prices (*)
+Outstanding at the end of the year
+*
+Exercisable at the end of the year
+*Include options exercised, pending allotment.
+$ Weighted average share price on the date of exercise * 823.63
+(numbers)
+No. of options on Account of rounding off of
+the fraction to the next higher whole Number
+as per the merger Scheme
+0% - 20-%
+3,000,000
+4,000,000
+Retirement pension payment plan:
+The experience adjustment for retirement pension payment plan over current and previous four years have not been
+given as the amounts are immaterial.
+42 Taro Pharmaceutical Industries Ltd and its Israeli subsidiaries are required to make severance or pension payments
+to dismissed employees and to employees terminating employment under certain other circumstances. Deposits are
+made with a pension fund or other insurance plans to secure pension and severance rights for the employees in Israel.
+43 EMPLOYEE SHARE-BASED PAYMENT PLANS
+(a) Erstwhile RLL had Employee Stock Option Schemes ("ESOSs") namely, Employees Stock Option Scheme -II (ESOS-
+II), Employees Stock Option Scheme 2005 (ESOS 2005) and Employees Stock Option Plan 2011 (ESOP 2011) for
+the grant of stock options to the eligible employees and Directors of the Erstwhile RLL and its subsidiaries. ESOS-II
+had been discontinued from 17th January, 2015. The ESOSS is administered by the Compensation Committee
+("Committee"). Options are granted at the discretion of the Committee to selected employees depending upon
+certain criterion. Each option comprises one underlying equity share.
+ESOS 2005 scheme provided that the grant price of options would be the latest available closing price on the stock
+exchange on which the shares of the erstwhile RLL were listed, prior to the date of the meeting of the Committee in
+which the options were granted. If the shares are listed on more than one stock exchange, then the stock exchange
+where there is highest trading volume on the said date shall be considered. The options vested evenly over a
+period of five years from the date of grant. Options lapse, if they are not exercised prior to the expiry date, which
+was ten years from the date of grant.
+186
+CORPORATE OVERVIEW
+02 - 05
+4,000,000
+FINANCIAL STATEMENTS
+85 - 206
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+ESOP 2011 provided that the grant price of options would be the face value of the equity share i.e. 5 per share.
+The options vested evenly over a period of three years from the date of grant. Options lapse, if they were not
+exercised prior to the expiry date, which was three months from the date of the vesting. An ESOP Trust had been
+formed to administer ESOP 2011. Shares issued to the ESOP Trust were allocated to the eligible employees
+upon exercise of stock options from time to time. As per the Guidance Note on Accounting for Employee Share
+based Payments issued by the Institute of Chartered Accountants of India, the shares issued to an ESOP Trust
+but yet to be allocated to the employees as on the reporting date have been deducted from the Share Capital
+with a corresponding adjustment to the loan receivable from ESOP Trust. Accordingly, the Holding Company has
+adjusted shares held by the ESOP Trust on the reporting date from the Share Capital/Share Suspense Account.
+The Shareholders' Committee of erstwhile RLL have approved issuance of options under the ESOS's as per details
+given below:
+Date of approval
+25th June, 2003
+30th June, 2005
+9th May, 2011
+Scheme
+ESOS - II
+ESOS 2005
+ESOP 2011
+Original No. of options approved
+NOTES
+a)
+38 ACCOUNTING STANDARD (AS-17) ON SEGMENT REPORTING
+18.9
+427.4
+127.2
+11,458.1
+11,829.0
+430.4
+119.8
+12,858.5
+17,632.8
+1,177.5
+18,810.3
+21,287.8
+782.6
+22,070.4
+31st March, 2016 31st March, 2015
+Gufic Pharma Limited
+Ranbaxy Farmaceutica Ltda.
+Ranbaxy Ireland Limited
+11,849.7
+S.C Terapia S.A.
+Insite Vision Incorporated
+Artes Biotechnology GmbH
+Taro Pharmaceutical Industries Limited
+Sun Pharma Japan Limited
+Sun Farmaceutica do Brasil Ltda
+Sun Pharmaceutical Industries, Inc.
+Goodwill in respect of :
+35 GOODWILL ON CONSOLIDATION (NET):
+Total
+Ranbaxy Pharmaceuticals (Pty) Limited
+Capital
+193.6
+4,943.8
+1,331.4
+Ranbaxy Malaysia Sdn. Bhd.
+Ranbaxy Drugs Limited
+0.9
+0.9
+1,149.5
+1,229.2
+Ranbaxy Nigeria Limited
+Alkaloida Chemical Company Zrt.
+Capital Reserve in respect of :
+183.1
+Less:
+38,229.2
+43,110.4
+469.4
+469.4
+250.3
+250.3
+117.0
+12,015.6
+12,015.6
+Total (A)
+27.5
+Revenue (Excluding Depreciation), [net]
+Year ended
+9.6
+231,140,480
+Dilip Shantilal Shanghvi
+held
+held
+31st March, 2015
+No. of Shares % of Holding
+% of Holding
+31st March, 2016
+No. of Shares
+Name of Shareholders
+231,140,480
+As at
+Equity Shares held by each shareholder holding more than 5 percent Equity Shares (Previous Year excluding Share
+Suspense Account) in the Holding Company are as follows:
+vii
+vi Refer note 43 for number of employee stock options against which equity shares are to be issued by the Holding
+Company/ESOP Trust upon vesting and exercise of those stock options.
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+As at
+34 RESEARCH AND DEVELOPMENT EXPENDITURE
+11.2
+Family Investment Pvt. Ltd.
+Year ended
+*In Million
+8.8
+182,868,640
+7.6
+182,868,640
+Quality Investments Pvt. Ltd.
+8.8
+182,927,440
+Viditi Investment Pvt. Ltd.
+7.6
+9.4
+195,343,760
+8.1
+195,343,760
+Tejaskiran Pharmachem Industries Pvt. Ltd.
+9.7
+201,385,320
+8.4
+201,385,320
+182,927,440
+27.5
+41.7
+41.7
+6.3
+0.9
+No of options of certain overseas employees
+4,968
+Total number of options outstanding
+455,766
+Forfeited during the year
+(43,326)
+Exercised during the year #^
+6.3
+(224,201)
+6.3
+6.3
+6.3
+666
+6.3
+0.9
+6.3
+0.9
+6.3
+6666
+6.3
+1,368
+1.7
+18.9
+19.6
+19.6
+1.0
+479.9
+270.00-703.00
+270.00-703.00
+480.9
+2.5
+480.9
+188
+No. of options on Account of rounding off of
+the fraction to the next higher whole Number
+as per the merger Scheme
+The movement of the options (post split) granted under SUN-ESOP - 2015 for the current year is given below:
+Exercise
+price (*)
+Weighted-
+average exercise
+prices (*)
+Weighted-average
+remaining contractual
+life (years)
+Outstanding at the commencement of the
+year
+Number of options - post-merger of erstwhile
+RLL with the transferee company
+449,430
+6.3
+6.3
+Stock options
+(numbers)
+6.3
+Lapsed during the year
+(18,326)
+Year ended
+Diluted Earnings Per Share (in)
+Basic Earnings Per Share (in)
+Weighted Average number of Shares used in computing Diluted Earnings Per Share
+Nominal value per share (in)
+Profit for the year (in Million) - used as Numerator for calculating Earnings Per Share
+Weighted Average number of Shares used in computing Basic Earnings Per Share (taking
+into account Equity Shares with respect to Share Suspense Account for previous year)
+Add: Dilution effect of Employee Stock Options
+37 ACCOUNTING STANDARD (AS-20) ON EARNINGS PER SHARE
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+31st March, 2016
+― ANNUAL REPORT 2015-16
+SUN
+179
+36 RELATED PARTY DISCLOSURES (AS-18) - AS PER ANNEXURE 'B'
+37,009.6
+41,811.1
+Total (A-B)
+1,219.6
+1,299.3
+Total (B)
+PHARMA
+47,159.1
+2,406,379,179
+* in Million
+Year ended
+31st March, 2015
+45,393.8
+2,404,936,420
+6.3
+6.3
+Outstanding, end of the year $
+169,913
+6.3
+6.3
+Exercisable at the end of the year $
+40,259
+6.3
+6.3
+1.1
+0.2
+$ Include options exercised, pending allotment.
+# Shares allotted by the ESOP Trust against the options exercised including 1,066 shares equivalent to 1,333 shares issued by erstwhile RLL prior to
+10th April, 2015.
+^ Weighed average share price on the date of exercise 848.68.
+During the current year, the Holding Company has recorded a Stock-based employee compensation expense of 98.8
+Million (Previous Year 205.0 Million). The amount has been determined under a fair value method wherein the grant
+date fair value of the options is calculated by using Black Scholes pricing model.
+1.0
+2,406,129,594
+2,407,438,909
+1,193,174
+1,059,730
+185
+4.9
+N.A.
+Experience adjustment
+757.7
+716.2
+later than five years
+171.1
+Actuarial (loss)/gain
+(7.9)
+(29.0)
+(4.2)
+3.3
+Less: Unearned Finance Income
+Actual return on plan assets
+366.8
+158.8
+158.5
+Reconciliation of defined-benefit commitments
+Commitments as at the beginning of the year
+4,810.2
+2,169.3
+Pursuant to the Scheme of Amalgamation (Refer Note 54)
+4,280.8
+385.5
+515.3
+1,145.0
+539.5
+Present value of minimum lease payments receivable aggregate
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+Contribution to Superannuation Fund
+Contribution to Provident Fund and Family Pension Fund
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+SUN
+576.8
+181
+41 ACCOUNTING STANDARD (AS-15) ON EMPLOYEE BENEFITS
+later than one year and not later than five years
+later than five years
+358.4
+350.4
+30.9
+28.3
+10.0
+10.6
+not later than one year
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance
+Corporation (ESIC) and other Funds which covers all regular employees. While both the employees and the Group
+make predetermined contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund and Other
+Statutory Funds are made only by the Group. The contributions are normally based on a certain percentage of the
+employee's salary. Amount recognised as expense in respect of these defined contribution plans, aggregate to
+750.1 Million (Previous Year 679.6 Million).
+Commitments transferred
+28.9
+68.5
+1,876.6
+Pursuant to the Scheme of Amalgamation (Refer Note 54)
+4,399.5
+514.7
+1,279.2
+Expected return on plan assets
+393.4
+395.8
+163.0
+155.2
+4,806.5
+Employer's Contributions during the year
+374.6
+67.1
+Employees' contributions during the year
+412.1
+Plan assets transferred
+Benefits paid
+Actuarial gain/(loss)
+Plan assets as at the year end
+28.9
+(588.1)
+(7.9)
+4,632.8
+174.4
+Plan assets as at the beginning of the year
+Reconciliation of plan assets
+140.5
+Current service cost
+180.8
+213.4
+143.4
+Employees' contributions during the year
+412.1
+Interest cost
+347.6
+480.0
+Benefits paid
+Actuarial (gain)/loss
+(588.1)
+(614.8)
+2.8
+Commitments as at the year end
+4,598.6
+4,810.2
+438.7
+2,722.2
+(70.8)
+(142.9)
+368.0
+2,169.3
+Employer's Contribution to Family Pension Fund - (Previous Year 45,198)
+68.5
+in Million
+31st March, 2016
+NOTES
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+182
+(118.7)
+3.7
+364.7
+442.9
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+31.8
+(155.2)
+(163.0)
+(395.8)
+(393.4)
+140.5
+169.4
+480.0
+347.6
+143.4
+7.9
+213.4
+Provident Fund (funded)
+Year ended
+155.2
+163.0
+395.8
+393.4
+Expected return on plan assets
+Return on plan assets
+and Loss
+493.4
+662.7
+Year ended
+178.1
+recognised in the Balance Sheet #
+Excess of planned assets over commitments not
+31st March, 2016 31st March, 2015
+Year ended
+Year ended
+Gratuity (funded)
+* in Million
+FINANCIAL STATEMENTS
+85 - 206
+31st March, 2016 31st March, 2015
+34.2
+Expense charged to the Consolidated Statement of Profit
+180.8
+Recognition of unrecognized liabilities/(assets) of earlier
+years
+Actuarial loss/(gain)
+Year ended
+Gratuity (funded)
+* in Million
+Year ended
+Provident Fund (funded)
+Year ended
+Category of Plan Assets: The Group's Plan Assets in respect of Gratuity are funded through the Group Scheme of the LIC of
+India except for certain employees for whom contribution is made to a fund administered under a Trust.
+The Group had an obligation towards provident fund, a defined benefit plan, with respect to certain employees upto
+31st March, 2015 and in the current year the contribution for the same is made to RPF which has been included in defined
+contribution plan.
+The Group had an obligation towards pension, a define benefit retirement plan with respect to certain employees, who had
+already retired before 1st March, 2013 will continue to receive the pension as per the pension plan.
+In respect of Gratuity, a defined benefit plan, Contributions are made to LIC's Recognised Group Gratuity Fund Scheme.
+Provision for Gratuity is based on actuarial valuation done by independent actuary as at the year end. Actuarial Valuation for
+Compensated Absences is done as at the year end and the provision is made as per the Group rules with corresponding
+charge to the Consolidated Statement of Profit and Loss amounting to ₹ 465.2 Million (Previous Year 353.2 Million)
+and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee
+compensation. Commitments are actuarially determined using the 'Projected Unit Credit' method. Gains and losses on
+changes in actuarial assumptions are accounted for in the Consolidated Statement of Profit and Loss.
+Year ended
+0.0
+0.1
+12.9
+25.5
+26.3
+51.6
+90.3
+602.4
+620.5
+Year ended
+31st March, 2015
+0.1
+Reconciliation of liability / (asset) recognised in the
+Balance sheet
+31st March, 2016 31st March, 2015 31st March, 2016 31st March, 2015
+Present value of commitments (as per Actuarial
+Valuation)
+Expected return on plan assets
+Interest cost
+Current service cost
+of Profit and Loss
+Expense recognised in the Consolidated Statement
+292.7
+580.8
+3.7
+Net liability in the Balance sheet
+recognised in the Balance Sheet #
+34.2
+Excess of planned assets over commitments not
+(1,876.6)
+(2,141.4)
+(4,806.5)
+(4,632.8)
+Fair value of plan assets
+2,169.3
+2,722.2
+4,810.2
+4,598.6
+Year ended
+(614.8)
+169.4
+(268.6)
+(268.6)
+(4.2)
+2,141.4
+(36.0)
+Notes:
+i)
+(29.0)
+4,806.5
+iii)
+The gratuity contribution expected to be made by the Group during financial year ending on 31st March, 2017 is 413.0 Million (Previous Year 205.7
+Million).
+In respect of the erstwhile RLL, the Holding Company has recognised an expense of 68.2 Million (Previous Year 16.8 Million) pertaining to portion of
+employers' contribution paid to the statutory authorities, which is included in "Employee benefits expense".
+The above disclosures are provided to the extent applicable and available from the individual Financial Statements of the Holding Company and
+subsidiaries.
+The erstwhile RLL primarily provides the following retirement benefits to its employees:
+(347.6)
+Pension
+(Unfunded)
+Year ended 31st
+March, 2016
+Year ended 31st
+March, 2015
+Pursuant to the Scheme of Amalgamation
+Present value of obligation as at the commencement of
+the year
+974.8
+Year ended 31st
+March, 2016
+36.3
+Retirement pension payment plan
+(Unfunded)
+Year ended 31st
+March, 2015
+Change in the present value of obligations:
+957.0
+311.6
+515.3
+(514.7)
+0.6
+154.9
+(4.2)
+2,722.2
+(2,141.4)
+Experience adjustment
+Gratuity
+Experience adjustment
+On plan liabilities - loss/(gain)
+On plan assets - gain / (loss)
+Present value of commitments
+Fair value of plan assets
+Year ended
+457.9
+(436.6)
+21.3
+31st March, 2016 31st March, 2015 31st March, 2014 31st March, 2013 31st March, 2012
+55.7
+32.1
+26.5
+4.4
+8.2
+6.8
+Net liability/(assets) in the balance
+sheet
+580.8
+2,169.3
+(1,876.6)
+292.7
+218.3
+3.3
+* in Million
+34.8
+Add: Current service cost
+Expenses recognised in the Consolidated Statement
+of Profit and Loss:
+Current service cost
+4.7
+4.2
+Add: Interest cost
+76.6
+82.1
+0.6
+36.3
+1.1
+(32.8)
+21.7
+(4.1)
+3.7
+Expense recognised in the Consolidated Statement of
+Profit and Loss
+43.8
+103.8
+1.2
+9.0
+Add: Net actuarial (gain) / loss recognised
+(Refer Note 54)
+38.4
+930.7
+4.7
+4.2
+Add: Interest cost
+76.6
+82.1
+0.6
+1.1
+Less: Benefits paid/ settlement
+(87.9)
+974.8
+(86.0)
+Add: Actuarial (gain) / loss on obligations
+(32.8)
+21.7
+(4.1)
+3.7
+Translation adjustment - gain
+4.2
+(7.5)
+Present value of obligation as at the end of the year
+(3.3)
+FINANCIAL STATEMENTS
+85 - 206
+ii)
+NOTES
+Gratuity (funded)
+Year ended
+31st March, 2016
+7.54% to 7.90%
+N.A.
+Year ended
+31st March, 2015
+7.80% to 7.94%
+N.A.
+Expected average remaining working lives of employees
+Withdrawal
+Retirement age
+Mortality
+8% to 10%
+8.00 to 26.72
+years
+8% to 18%
+58 to 60 years
+Indian assured
+lives mortality
+(2006-08)
+8% to 10%
+8.00 to 26.72
+years
+8.75%
+3% to 18%
+58 to 60 years
+Indian assured
+The estimates of future salary increases, considered in the actuarial valuation, take into account inflation, seniority, promotion and other
+relevant factors such as supply and demand in the employment market.
+** On the basis of average rate of earnings expected on the funds invested.
+8.80%
+N.A.
+20.91 to 26.72
+years
+15% to 18%
+58 to 60 years
+Indian assured
+lives mortality
+(2006-08)
+9.00% to 9.03%
+N.A.
+20.91 to 26.72
+years
+15% to 18%
+58 to 60 years
+Indian assured
+lives mortality
+(2006-08)
+7.54% to 9.00%
+7.94% to 9.00%
+The major categories of plan assets as a percentage of total plan assets are as under:
+Particulars
+lives mortality
+(2006-08)
+Central government securities
+8.80%
+Expected return on plan assets **
+(142.9)
+3.3
+1,876.6
+# Represents increase in surplus, which in the absence of any right to claim the surplus as refund or expected reduction in future contribution to the plan, is
+unrecognised.
+The actuarial calculations used to estimate commitments and expenses in respect of provident fund and gratuity are based on the assumptions which if
+changed, would affect the commitment's size, funding requirements and expense.
+183
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Expected rate of salary increase
+NOTES
+Provident Fund (funded)
+Actuarial Assumptions
+Discount rate
+Year ended
+Year ended
+31st March, 2016 31st March, 2015
+7.54%
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Interest rate guarantee
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+State government securities
+7.80%
+Year ended
+Particulars
+Present value of defined benefit obligation
+Fair value of plan assets
+Excess of (obligation over plan assets) / plan assets over obligation
+Experience adjustment loss/ (gain) for plan liability
+Experience adjustment (gain)/ loss for plan assets
+184
+* in Million
+Provident fund (Funded)
+Year ended
+31st March, 2016
+Year ended
+31st March, 2015
+(4,598.6)
+4,632.8
+4,806.5
+34.2
+(3.7)
+(23.5)
+(7.9)
+(127.9)
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+Provident Fund (Funded)
+Year ended
+1%
+2%
+(4,810.2)
+Surplus fund lying uninvested
+Gratuity (Funded)
+Year ended
+14%
+Year ended
+31st March, 2016 31st March, 2015 31st March, 2016 31st March, 2015
+21%
+22%
+1%
+12%
+16%
+1%
+2%
+Bonds and securities of public sector/financial
+53%
+60%
+9%
+14%
+institutions
+Insurer managed funds (Funded with LIC, break-up not
+available)
+89%
+83%
+0.1%
+2.9%
+170-200
+1-4%
+41
+31
+52-62
+2-5%
+30-38
+(-3)-0%
+144
+3.8%
+5-8%
+STATUTORY REPORTS
+06 - 84
+6.1%
+430
+2016-2020 CAGR
+2020
+2010-2015 CAGR
+2015
+(US$ billion)
+FINANCIAL STATEMENTS
+85 - 206
+Developed Markets
+South Korea
+25
+Japan
+Canada
+560-590
+3.1%
+684
+2-5%
+exposure of brands to loss of exclusivity will be higher, at
+US$ 190 billion, over the next five years; and the impact
+of those expiries on brand spending will be greater as
+biosimilars begin to have a larger impact.
+Spain
+The loss of exclusivity for branded products is expected
+to reduce brand spending by US$ 178 billion in the next
+five years, a larger amount vis-à-vis the last five years. The
+Patent expiries in developed markets
+3-6%
+870-900
+4.8%
+2-5%
+13-20
+2.3%
+13
+3-6%
+23-33
+2.0%
+19
+0-3%
+79-89
+2.6%
+78
+1-4%
+20-28
+0.7%
+19
+3-6%
+28-38
+6.9%
+28
+30-40
+UK
+2010
+France
+10%
+10.5%
+11%
+11.5%
+12%
+0
+50
+100
+150
+200
+250
+300
+CHART 6
+Japan, Italy, Spain, Poland and France have adopted pro-
+generic policies that encourage doctors or pharmacists to
+substitute generics for branded products. The transition to
+generics in these markets is gradually increasing.
+Generic drugs account for around 70% of the US drug
+market by volume. In Europe they account for around 50%,
+although the proportion differs significantly by country. To
+a large extent, the magnitude of savings from generics that
+each country achieves depends on the utilisation levels
+and price differentials between the generic and branded
+versions. In the US, generics use is almost 90% within
+the off-patent (unprotected) market. However, in some
+European countries, potential savings are not fully exploited
+due to lower utilisation of generics in key therapy areas.
+The patent cliff has passed its steepest point, and a steady
+flow of patent expiries continues to offer opportunities for
+generics, as cost-conscious governments and other
+healthcare payers increasingly endorse generic drugs. The
+global generics market was valued at US$ 168 billion in
+2013; and is expected to reach US$ 283 billion by 2018,
+registering an 11% CAGR.
+GLOBAL GENERICS³
+US$ billion
+Global Generic Market³
+Other CNS |2.5-3
+Traditional |0.93-1.3
+02-05
+-
+CORPORATE OVERVIEW
+CHART 5
+2015
+CHART 7
+2013 2014 2015 2016 2017 2018
+Revenue
+Growth Rate
+9
+SUN
+Germany
+EU5
+Region/Country
+Developed market pharmaceutical spending¹
+TABLE 2
+02-05
+-
+CORPORATE OVERVIEW
+10
+Pharmaceutical spending in developed markets stood at
+around US$ 684 billion in 2015. It is estimated to grow at
+a compound annual growth rate (CAGR) of 3-6% during
+2016-20 to reach US$ 870-900 billion by 2020. Developed
+markets will continue to account for the majority of medicine
+spending due to both higher prices per unit; and the mix of
+newer medicines that bring meaningful clinical benefits to
+patients facing a wide range of diseases.
+Developed markets
+In 2020, the US, EU5 and Japan will have important
+differences in spending and growth dynamics, compared
+to what it is today. Pharmerging markets spending will grow
+primarily from increased use of medicines, while China, the
+leading pharmerging country, will reach US$ 160-190 billion
+in spending with sluggish growth to 2020.
+The global pharmaceutical spending growth will be driven
+by brands in developed markets and enhanced usage in
+pharmerging markets, while being partly offset by patent
+expiries. Brand spending in developed markets is likely to
+increase by US$ 298 billion in the next five years, driven by
+new products and price escalation primarily in the US.
+Italy
+Outlook
+There are around 387 million diabetes patients globally;
+and the number is expected to touch 592 million by 2035.
+China and India have the largest number of diabetes
+sufferers in the world, at more than 96 million and 66 million,
+respectively.
+The proliferation of chronic diseases — in part, a
+consequence of enhanced life expectancy and other
+factors is having serious repercussions in both developed
+and emerging countries. Obesity, cardiovascular diseases,
+hypertension, and diabetes are now persistent, widespread
+health problems and will challenge public health systems to
+meet increasing demand for drugs and treatments.
+Growing chronic diseases²,6
+The trend towards the adoption of universal healthcare
+continues, with more countries expanding public or private
+health care system coverage or deepening it to reduce out-
+of-pocket spending. In perhaps the most visible example
+of expanding health care coverage, the US federal and
+state governments continue to implement health insurance
+exchanges under the Patient Protection and Affordable
+Care Act of 2010 (ACA).
+Accessibility and affordability²
+Population expansion and rising wealth should be
+strong drivers of health spending in developing markets,
+particularly in Asia and the Middle East. By 2019, the
+number of high-income households (those earning over
+US$ 25,000 a year) will likely rise to over 540 million globally;
+Asia is projected to generate more than half of that growth.
+Rising income²
+Ageing population and growing life expectancy - up from
+an estimated 72.3 years in 2014 to 73.3 years in 2019 - will
+bring the 65-plus age category to over 604 million, or 10.8%
+of the total global population. This number is anticipated
+to be even higher in Western Europe (nearly 21%) and
+Japan (28%). Among the factors contributing to increased
+life expectancy are, declining infant mortality, enhanced
+living conditions, improved sanitation, better prevention of
+communicable diseases and growing access to medicine.
+Ageing population and life expectancy³
+Populations across large parts of the world (Western Europe,
+Japan, China, Argentina, Thailand, among others) are ageing.
+This scenario is expected to bolster healthcare spending; and
+the demand for pharmaceutical products in 2016 and beyond.
+Key Demand Drivers
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+Coating Unit
+Developed markets patent expiry exposure and impact¹
+US
+2011-2015: 157
+Employees worldwide
+>30,000
+Markets served
+>150
+Products marketed
+>2,000
+Manufacturing
+facilities across six
+continents
+49
+Global revenue as on
+31st March, 2016
+US$ 4.3
+BILLION
+Beginning in 1983 with a portfolio of 5
+products, Sun Pharma has emerged as
+the world's fifth largest specialty generic
+pharmaceutical company and India's top
+pharmaceutical company. The Company's
+vertically integrated business, economies
+of scale and a skilled team enable delivery
+of quality products in a timely manner at
+affordable prices. It provides high-quality,
+affordable medicines trusted by customers
+and patients across the world. The
+Company's global presence is supported
+by 49 manufacturing facilities, spanning six
+continents, R&D centers across the globe and
+a multi-cultural workforce comprising over
+50 nationalities.
+SUN PHARMACEUTICAL INDUSTRIES
+LIMITED (SUN PHARMA)
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+-
+CORPORATE OVERVIEW
+14
+Going forward, growth in Indian market would also depend
+on the ability of companies to align their product portfolio
+towards therapies for chronic diseases (cardiovascular, anti-
+diabetes, anti-depressants and anti-cancers) that are on
+the rise.
+In 2015, the market size of the pharmaceutical industry in
+India was at US$ 12.1 billion. Future growth is expected
+to be driven by increasing consumer spending, rapid
+urbanisation, and rising healthcare insurance among others.
+INDIAN PHARMACEUTICAL MARKET 1,5
+The pharmaceuticals market in India is the third
+largest in terms of volume and 13th largest
+in terms of value globally. Branded generics
+dominate the market with 70%+ share. The
+country is the largest provider of generic drugs
+globally with the Indian generics accounting for
+20% of global exports in volume terms.
+Asia Pacific is projected to be the fastest growing regional
+market. The fast growth is attributed to patent expirations of
+drugs, and favorable investments in medical research.
+The market is segmented on the basis of API type,
+manufacturers, therapeutic area and geography.
+The Global Active Pharmaceutical Ingredients (API) market
+accounted for US$ 121.4 billion in 2014; it is expected to
+grow at 6.4% CAGR to reach US$ 198.8 billion by 2022.
+Patent expiration of prominent drugs, government initiatives,
+regional penetration and ageing global population are some
+of the factors that are driving market growth. Strict validation
+and safety guidelines stated by WHO and fragmented market
+are the factors that are hampering the API market growth.
+Active Pharmaceutical Ingredients (API)4
+From category perspective, Vitamins and Mineral
+Supplements (30%) followed by Cough, Cold & Allergy
+(20%) are two biggest categories. Dermatology (14%),
+Analgesics (13%) and Gastrointestinals (12%) are the other
+important categories.
+The market comprises two sets of competition: global
+bellwethers having extensive resources, strong brands and
+economies of scale; and local leaders possessing deep
+understanding of consumers' needs and close relationships
+with suppliers, distributors, retailers and regulators.
+Sun Pharma is an innovation driven enterprise, supported
+by strong R&D capabilities comprising about 2,000
+scientists and R&D investments of over 8% of annual
+revenues.
+USA and China represent the biggest markets with 40%
+market share of the US$ 119 billion industry. BRIS (Brazil,
+Russia, India and South Africa) have 9% share, growing at
+8% annually.
+➤ Sun Pharma is the fifth largest generics company in the
+US with one of the largest ANDAs pipeline and a portfolio
+of over 400 approved products
+➤ Sun Pharma is the largest Indian company in the
+emerging markets (50+ countries presence) with strong
+focus on Brazil, Mexico, Russia, Romania and South
+Africa, among others
+Our strategic moves
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+SUN
+―15
+➤ Directing future investments towards differentiated
+products
+Balance profitability and investments for future
+➤ Increasing contribution of specialty and complex
+products
+➤ Optimising operational costs
+➤ Vertically integrating operations
+Cost leadership
+➤ Ensuring acquisitions yield high return on investment
+➤ Focusing on payback timelines
+> Focusing on access to products, technology, market
+presence
+➤ Using acquisitions and partnering to bridge critical
+capability gaps
+Business development
+➤ Ensuring sustained compliance with global
+regulatory standards
+➤ Improvising speed to market
+➤ Focusing on key markets-achieving critical mass
+➤ Achieving differentiation by focusing on technically
+complex products
+➤ Enhancing the share of specialty business globally
+Creating sustainable revenue streams
+business features to help achieve higher efficiencies, driving
+sustainable growth.
+Sun Pharma's business model comprises four crucial
+Long-term growth strategies
+> The Company produces over 300 APIs, adding around 20
+APIs annually
+➤ The Company is ranked among the top 10 across four
+global markets in the consumer healthcare business
+➤ The Company is also present in major markets of Western
+Europe (6 markets), Canada, ANZ and many others
+➤ In India, the Company enjoys leadership across 13
+different classes of doctors with 30 brands featuring
+among the top 300 pharmaceutical brands in India
+Ramping up specialty pipeline
+The global consumer healthcare market grew by 6% CAGR
+between 2008 and 2014 vis-à-vis pharmaceutical industry
+CAGR of 4% in the same period.
+TANK NO
+85-95
+12.9%
+57
+6-9%
+150-180
+14.2%
+115
+(US$ billion)
+2016-2020 CAGR
+2020
+2010-2015 CAGR
+2015
+Pharmerging Markets
+Tier 3 Markets
+India
+Russia
+Brazil
+Tier 2 Markets
+China
+Region/Country
+Pharmerging markets pharmaceutical spending¹
+TABLE 3
+The difference in per capita spending growth and overall
+spending growth over the next five years reflects population
+growth. The overall high level of per capita pharmaceutical
+spending growth reflects both access expansions and
+the rising mix of higher cost medicines being used in
+pharmerging markets.
+Growth in spending on medicines in pharmerging markets
+is driven primarily by wider use of medicines. The per
+capita escalation in volume and spending reflect the
+strong commitment to wider access to healthcare from
+governments; and expanded private insurance markets that
+many pharmerging countries are experiencing.
+Pharmerging markets: Pharmaceutical spending in
+pharmerging markets stood at around US$ 249.2 billion
+in 2015. It is estimated to grow at CAGR of 7-10% during
+2016-20 to reach US$ 345-375 billion by 2020.
+2010-15 saw substantial increase in the average prices of
+medicines as policies designed to reward innovators were
+implemented. The incentives to wider generic usage will
+double generic spending, as generic penetration of the
+unprotected market is targeted by the Ministry of Labor
+Health and Welfare (MLHW) to reach 80% by 2020, up from
+54.4% for the quarter ending June 2015.
+Japan: Japan's pharmaceutical spending stood at
+approximately US$ 78.3 billion in 2015. It is estimated to
+grow at a compound annual growth rate (CAGR) of 0-3%
+during 2016-2020 to reach US$ 79-89 billion by 2020.
+Japan's growth is expected to return to historic patterns
+through 2020; and the long-term effects of the new
+price regime will result in average prices to be essentially
+unchanged from 2015.
+57
+9-12%
+Global Consumer Healthcare Industry'
+28
+34-44
+Injectable Unit
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+SUN
+13
+(Pharmerging markets: China, Brazil, Russia, India, Venezuela, Poland, Argentina, Turkey, Mexico, Vietnam, South Africa, Thailand, Indonesia, Romania, Egypt,
+Pakistan, Ukraine, Algeria, Colombia, Nigeria, Saudi Arabia and Russia)
+7-10%
+345-375
+11.9%
+249
+6-9%
+100-120
+8.2%
+77
+5-8%
+13-19
+10.9%
+79
+FY16
+78
+FY15
+11-14%
+29-39
+13.0%
+17
+9-12%
+13.8%
+Traditional
+Specialty
+➤ In-licensed Tildrakizumab (a monoclonal antibody
+targeting IL-23) from MSD for treating chronic
+plaque psoriasis
+➤ Acquired Dusa Pharma in US - Enabling access to
+patented drug-device combination useful for treating
+Actinic Keratosis, a dermatology ailment
+― 17
+Entry into the US market
+New Jersey, US
+Ohio, US
+Detroit, US
+Acquired Caraco
+1997
+Assets of Able Labs Formulation plant
+in Bryan
+2005
+Tennessee, US
+Acquired Chattem Chemicals, Inc.
+2008
+Industries Ltd.
+Israel
+Acquired Taro Pharmaceutical
+2010
+US
+Acquired DUSA Pharma, Inc.
+2012
+US
+Acquired URL's generic business
+2013
+Global Markets
+Formation of Sun-Intrexon JV
+2013
+US
+Global Markets
+In-licensing agreement with Merck for
+Tildrakizumab, a biologic for psoriasis
+Acquired Pharmalucence
+2014
+SUN
+2014
+― ANNUAL REPORT 2015-16
+PHARMA
+Billion
+Pre-expiry Spending - Small Molecule
+Lower Brand Spending - Small Molecule
+Market Capitalisation
+106.5
+FY15
+272
+130.5
+FY16
+277
+per share
+Book value per share
+Billion
+Business-wise revenue share
+FY15
+FY16
+(post exceptional items)
+Adjusted Earning per Share
+FY15
+FY16
+Profit After Tax
+FY15
+FY16
+EBITDA
+FY15
+FY16
+Net sales
+KEY FINANCIAL INDICATORS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+➤ Entered into a joint venture with Intrexon Corporation
+for developing gene-based therapies for ocular
+diseases
+Import registration with DEA, API Plant approved by DEA in
+Tennessee, US - access to controlled substances capability
+Dosage form plant (NJ, US) and Intellectual Property
+Dosage form plant (Ohio, US)
+Access to branded derma product
+Key acquisitions and joint ventures (JV)
+TABLE 4
+STATUTORY REPORTS
+06 - 84
+02-05
+-
+CORPORATE OVERVIEW
+Analytical Lab
+-
+16
+* Rest of World - Includes Western Europe, Canada, Australia, New Zealand & other markets
+Formulation Plant
+➤ Active Pharmaceutical Ingredients (API)
+➤ Global Consumer Healthcare Business
+> Rest of World*
+➤ Key focus areas include dermatology, ophthalmic,
+oncology, controlled substances, among others
+> One of the few companies globally to have farm-to-
+market capabilities for controlled substances
+➤ Current offerings in the US include many specialty
+generics across different dosage forms. Future product
+development targeted at complex generics
+➤ Firmly established as the no. 1 supplier of generic
+dermatology products in the US
+Complex generics in the US
+➤ Emerging Markets
+➤ Indian Branded Generics Business
+> US Business
+BUSINESS SEGMENTS
+> Among the largest Indian companies in branded
+emerging markets
+➤ Market leader in specialty chronic segments in India
+Branded businesses in the US, India and RoW
+➤ Ranked no. 3 branded dermatology company in the US
+market
+➤ Acquired InSite Vision - Focuses on developing new
+specialty ophthalmic products, has three late stage
+programs
+Year
+Enables entry into dermatology segment. Enhances presence in
+US generic market
+Deals
+2016
+Added 107 products to the US portfolio
+Strengthen ocular therapies
+Sterile injectable capacity in the US, supported by strong R&D
+capabilities
+Distribution services agreement in India for brand 'AxcerⓇ' (brand of
+ticagrelor, used for the treatment of acute coronary syndrome)
+Further strengthened Sun Pharma's positioning as the 5th largest
+Global Specialty Generic Pharma Company and No. 1 Pharma
+Company in India with strong positioning in emerging markets
+Strengthened the specialty product pipeline
+Distribution services agreement in India for brand 'Oxra' & 'OxrametⓇ
+(brands of dapagliflozin, used for diabetes treatment)
+Strengthened the branded ophthalmic portfolio in the US
+Vertical integration for controlled substances business
+Entry into Japan
+Rationale
+FINANCIAL STATEMENTS
+85 - 206
+Global Markets
+Sun Pharma - Ranbaxy Merger
+2015
+AstraZeneca
+India
+Distribution agreement with
+2015
+Global Markets
+Acquisition of GSK's Opiates Business
+2015
+US
+Acquisition of InSite Vision
+2015
+AstraZeneca
+India
+Distribution agreement with
+2016
+Japan
+Acquired 14 brands from Novartis
+Country
+UK
+12
+Spain
+France
+Italy Germany
+26% India
+FY16
+74% International
+-15%
+-10%
+-5%
+0%
+5%
+10%
+15%
+20%
+• Total Growth
+New Brands
+Loss of Exclusivity
+Protected Brands Price
+Generics Price
+Protected Brands Volume
+Generics Volume
+US$ growth
+US Pharmaceutical Spending Growth, 2010-20201
+CHART 8
+The Affordable Care Act (ACA) will continue to have an effect
+on medicine spending during the next five years, primarily due
+to expanded insurance coverage. ACA access expansion will
+be largely complete by 2020, bringing modest new demand
+for medicines, but an increasing share of medicines will be paid
+for by Medicare, Medicaid, and other government funded or
+mandated programs each commanding substantial discounts
+from list prices.
+to provide the vast majority of the prescription medicine
+usage in the US, rising from 88% to 91-92% of all dispensed
+prescriptions by 2020.
+The impact of patent expiries over the next five years,
+while higher in absolute dollars, will be lower in percentage
+contribution than the past five years; and no single year will
+reach the level of 2012. Generic medicines will continue
+USA: The US spending on medicines will reach $560-590
+billion in 2020, a 34% increase in spending over 2015 on an
+invoice price basis. This growth will be driven by innovation,
+invoice price increases (offset by off-invoice discounts and
+rebates) and the impact of loss of exclusivity. Spending
+growth in the next five years will differ from the last four
+which included the largest patent expiry cluster ever in 2012.
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+* Rest of World - Includes Western Europe, Canada, Australia, New Zealand & other markets
+India-international revenue mix
+210
+Billion
+47
+FY16
+45
+FY15
+*per share
+Gross Block
+19.6
+FY16
+18.9
+FY15
+48% US Business
+26% Indian Branded
+SUN
+Generics Business
+FY16
+8%
+Rest of World*
+5% Active Pharmaceutical
+Ingredients (API) & Others
+256
+167
+US$ Billion
+30
+35
+*Billion
+314
+13% Emerging Markets
+Net Worth
+―11
+2019
+21
+19
+2
+8
+002
+31
+29
+32
+29
+34
+44
+4
+2
+15
+2
+17
+16
+1
+16
+141
+US$ billion
+59
+131
+2016-2020: 190
+Pre-expiry Spending - Biologic
+Lower Brand Spending - Biologic
+18
+16
+-16
+-35
+2018
+2017
+2016
+2015
+2014
+2013
+2012
+2011
+-178
+-113
+-41
+-137
+2020
+-4
+-6
+-9
+-9
+-9
+-34
+-35
+-21
+-26
+-28
+-29
+-24
+-24
+-109
+Billion
+18
+24
+Across Europe, the adoption of specialty medicines will
+drive higher spending growth; and whereas 81% of the
+increase will be driven by specialty medicines, it will also
+be partly led by recovery in spending on non-specialty
+medicines.
+A common lever used by European countries to control
+spending on medicines is to shift usage to generics and
+realise associated savings. European governments were the
+first to adopt biosimilar legislation that enables non-original
+competition to biotech drugs; and by 2020 such drugs
+will account for most of the savings in developed markets
+associated with the adoption of biosimilars.
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+-
+CORPORATE OVERVIEW
+12
+The UK, is re-examining the organisation of the National
+Health Service (NHS) and historic pricing agreements with
+the pharmaceutical industry. Spain and Italy each continue
+to find their economies challenged by the global economic
+crisis; and have been slow to recover. Other major European
+countries will face budget challenges for healthcare funding.
+EU5: The top 5 (Germany, France, Italy, Spain and the
+UK) European markets will spend US$ 180-190 billion on
+medicines in 2020, an increase of US$ 40 billion from 2015,
+which includes US$ 19.4 billion of exchange rate effects,
+mostly driven by Germany and the wider adoption of specialty
+medicines. Germany will increase spending largely as a result
+of wider adoption of innovation.
+2020
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+Traditional medicines spending in 20201
+Developed Markets
+US$ billion
+Diabetes
+96-101
+Traditional
+medicines
+Pharmerging Markets
+Pain
+63-65
+Cardiovascular
+23-24
+Antibiotics
+Cardiovascular
+50-52
+CHART 9
+Spending US$ Bn
+EU5 Pharmaceutical
+Spending 2015 and 2020¹
+-
+2015 2020 Growth
+2016-20
+2015
+0
+41
+20
+57
+37.8%
+40
+47.2%
+28
+60
+33
+81.1%
+20-21
+25
+100
+35
+31
+120
+19
+140
+34
+144
+160
+180
+183
+200
+US$ billion
+80
+& Vaccines
+23-24
+2020
+Respiratory
+4-5
+Mental Health
+23-24
+Other CNS
+8-9
+Dermatology
+25-27
+Dermatology
+8/5-9.5
+Blood disorders,
+coagulation
+30-32
+Mental Health
+medicines
+11-12
+42-44
+Pain
+19-20
+Blood disorders,
+& Vaccines
+Respiratory
+35-37
+coagulation
+Antibiotics
+35-37
+Diabetes
+11-12
+Pursuant to the Scheme of Amalgamation
+Outstanding, end of the year^
+Exercisable at the end of the year^
+449,430
+41,948
+The Black-Scholes option-pricing model was developed for estimating fair value of trade options that have no vesting
+restrictions and are fully transferable. Since options pricing models require use of subjective assumptions, changes
+therein can materially affect fair value of the options. The options pricing models do not necessarily provide a reliable
+measurable of fair value of options. The volatility in the share price is based on volatility of historical stock price of the
+erstwhile RLL for last 60 months.
+Weighted Average
+remaining
+A summary of Taro stock activity and related information for the year ended 31st March, 2016:
+44 Stock-based compensation is accounted at Taro Pharmaceutical Industries Limited (Taro) based on the estimated fair
+value of stock options granted using the Black-Scholes model. Taro recognizes compensation expense for the value of
+its awards granted subsequent to 1st January, 2006, based on the straight-line method over the requisite service period
+of each of the awards, net of estimated forfeitures. The fair value of an award is affected by the stock price on the date
+of grant and other assumptions, including the estimated volatility of stock price over the term of the awards and the
+estimated period of time that Taro expect employees to hold their stock options.
+(b) As at March 31, 2016, the Holding Company has received an amount of ₹ 6.7 Million towards share application
+money towards 13,780 equity shares of the Holding Company [As at 31st March, 2015 ₹ 149.0 Million towards
+280,474 equity shares (no. of shares post merger)] at a premium of ₹ 6.7 Million (As at 31st March, 2015 ₹ 148.7
+Million). The Holding Company will allotted these equity shares during the next financial year. The Holding
+Company has sufficient authorised capital to cover the allotment of these shares. Pending allotment of shares, the
+amounts are maintained in a designated bank account and are not available for use by the Holding Company.
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+190
+0.2
+5.0
+5.0
+1.7
+5.0
+55
+52,434
+$
+Exercisable at the end of the year
+5.0
+561,787
+Outstanding, end of the year
+NOTES
+5.0
+No. of Options
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+33
+PHARMA
+5.0
+6.3
+6.3
+1.7
+6.3
+0.2
+$ Includes options exercised, pending allotment
+#Shares allotted by the ESOP Trust against these exercises
+* Weighted average share price on the date of exercise 621.36.
+^ Number of shares and exercise price are adjusted in accordance with the share exchange ratio (0.8) as per the scheme.
+The following table summarizes the assumptions used in calculating the grant date fair value for instrument granted in the year ended
+31st March, 2015: @@
+Particulars
+Grant Date
+6.3
+Expected life of options from the date(s) of grant
+Risk free interest rate
+Expected volatility
+Grant date fair value
+@@ Assumptions used are as applicable at the date of grant in the context of erstwhile RLL
+Year ended 31st March, 2015
+8th May, 2014
+0.43%
+1.25, 2.25 and 3.25 years
+8.57% (1.25 years)
+8.65% (2.25 years)
+8.71% (3.25 years)
+40.47%
+462.39 (1.25 years)
+460.79 (2.25 years)
+*459.16 (3.25 years)
+189
+SUN
+― ANNUAL REPORT 2015-16
+Dividend yield
+396.3
+Lapsed during the year
+496.0
+270.00-703.00
+1,169,545
+Exercisable at the end of the year^
+3.3
+496.0
+270.00-703.00
+1,169,545
+Outstanding, end of the year^
+Pursuant to the Scheme of Amalgamation
+3.3
+396.3
+3.3
+216.00-561.00
+Exercisable at the end of the year $
+450.0
+Exercised during the year*
+(1,434,434)
+216.00-538.50
+419.2
+Lapsed during the year
+(661,639) 216.00-538.50
+506.4
+Outstanding at the end of the year $
+1,461,931
+216.00-561.00
+1,461,931
+(29,628)
+$ Includes options exercised, pending allotment.
+(numbers)
+5.0
+5.0
+(675,123)
+Exercised during the year #*
+5.0
+5.0
+(202,133)
+Forfeited during the year
+5.0
+5.0
+481,766
+Granted during the year
+* Weighted average share price on the date of exercise ₹637.7
+0.9
+5.0
+986,905
+Pursuant to the Scheme of Amalgamation
+Weighted-
+average exercise
+prices (*)
+3.3
+Exercise price
+(In USD)
+450.00-450.00
+Exercise
+price (*)
+Weighted-average
+remaining contractual
+life (years)
+Stock options
+The movement of the options (post split) granted under SUN-ESOP 2015 for the previous year is given below:
+^ Number of shares and exercise price are adjusted in accordance with the share exchange ratio (0.8) as per the scheme
+5.0
+Weighted
+Average
+Exercised Price
+US Dollar
+Aggregate
+Intrinsic Value
+(In USD)
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+b) On 1st September, 2015, the Group acquired opiate business from GSK in Australia. Accordingly, these Consoli-
+dated Financial Statements includes total assets of 8,904.7 Million and total liabilities ₹2,603.6 Million as on 31st
+March, 2016 and total revenues of 1,996.0 Million, loss before tax and loss after tax 127.5 Million for the period
+from 1st September, 2015 to 31st March, 2016.
+61 With regard to tangible assets, the Holding Company and its Indian subsidiaries have adopted the useful life of fixed
+assets as indicated in Part C of Schedule II of the Companies Act, 2013 and amendment thereto vide notification dated
+29th August, 2014 issued by the Ministry of Corporate Affairs. Pursuant to the transition provisions prescribed in
+Schedule Il to the Companies Act, 2013, the carrying value of assets, net of residual value, where the remaining useful
+life of the asset was determined to be Nil as on 1st April, 2014, were fully depreciated, and an amount of * Nil
+(Previous Year 578.5 Million) was charged to the Consolidated Statement of Profit and Loss for the year ended
+31st March, 2015.
+62 Figures pertaining to the subsidiary companies have been reclassified wherever necessary to bring them in line with the
+group financial statements.
+63 Previous year's figures are regrouped/reclassified wherever necessary.
+197
+SUN
+PHARMA
+ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+FINANCIAL STATEMENTS
+85 - 206
+NOTES
+ANNEXURE 'A'
+DISCLOSURES MANDATED BY SCHEDULE III OF COMPANIES ACT, 2013, BY THE WAY OF ADDITIONAL INFORMATION
+198-
+Name of the Entity
+1
+Parent Entity - Sun Pharmaceutical Industries Limited
+Net Assets, i.e., total assets minus total liabilities
+Share in profit/(loss)
+2015-16
+2014-15
+As % of
+consolidated
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Amount
+(* in Million)
+STATUTORY REPORTS
+06 - 84
+CORPORATE OVERVIEW
+Interest bearing with specified repayment schedule:
+Zenotech Laboratories Limited, India *
+Considered good
+Considered doubtful
+Less: Provision for doubtful loans / advances
+* includes interest accrued and due on loans amounting to 151.5 Million (Previous Year 88.8 Million).
+As at
+As at
+31st March, 2016
+31st March, 2015
+In Million
+02 - 05
+In Million
+663.5
+274.0
+663.5
+600.8
+663.5
+274.0
+326.8
+Loans have been granted to the above entity for the purpose of its business.
+Consequent to the amalgamation of erstwhile RLL into the Holding Company as referred in Note 54, Zenotech Laboratories
+Limited ('Zenotech') had become an associate of the Holding Company. The erstwhile RLL had granted certain loans to
+Zenotech which were outstanding and inherited by the Holding Company. The Holding Company has not granted any further
+loans to Zenotech post effective date of amalgamation i.e. 24th March, 2015. The balance of this inherited outstanding loan
+is 512.0 Million (Previous Year 512.0 Million). The Holding Company is in process of evaluating various options in relation
+to recovery of the outstanding loans and interest thereon of ₹ 151.5 Million (Previous Year 88.8 Million). During the year,
+Zenotech's reference to the Board for Industrial and Financial Reconstruction (BIFR) had already been registered as case no.
+115/2015 under Section 15(1) of Sick Industrial Companies (Special Provisions) Act, 1985.
+60 a) Insite Vision Incorporated, a pharmaceutical company, incorporated in United States of America became subsidiary of the
+Holding Company on 2nd November, 2015. Accordingly, these Consolidated Financial Statements includes total assets
+of 899.9 Million and total liabilities ₹991.8 Million as on 31st March, 2016 and total revenues of 2.1 Million, loss before
+tax of $483.8 Million and loss after tax 90.7 Million for the period from 2nd November, 2015 to 31st March, 2016.
+196
+326.8
+As % of
+consolidated
+Amount
+(in Million)
+(3.8)
+(0.00)
+(3.8)
+(0.00)
+(0.0)
+(0.01)
+(4.0)
+2
+Sun Pharma Laboratories Limited
+60.62
+190,356.7
+(0.00)
+72.63
+14.22
+6,704.9
+(0.50)
+(227.0)
+3
+Faststone Mercantile Company Private Limited
+0.00
+10.7
+0.00
+9.1
+0.00
+186,107.1
+Green Eco Development Centre Ltd.
+1
+Indian
+2015-16
+As % of
+consolidated
+2014-15
+Amount
+(in Million)
+As % of
+consolidated
+net assets
+net assets
+profit/(loss)
+profit/(loss)
+2
+3
+68.41
+214,830.9
+4
+88.87
+5
+227,713.7
+6
+(22.76)
+7
+8
+(10,733.6)
+(32.47)
+Amount
+(* in Million)
+9
+(14,741.3)
+Subsidiaries
+59 LOANS/ADVANCES DUE FROM AN ASSOCIATES
+1.6
+First charge has been created on a pari-passu basis, by hypothecation of inventories, trade receivables, outstanding
+money receivables, claims and bills and other receivables (includes under loans and advances and other assets), both
+present and future.
+The Holding Company has not defaulted on repayment of loan and interest payment thereon during the year.
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+FINANCIAL STATEMENTS
+85 - 206
+c) In December 2015, the US-FDA issued warning letter to the Holding Company with respect to its manufacturing
+facility at Halol. The Holding Company remains fully committed to implement all corrective measures to address
+the observations made by the US-FDA with the help of third party consultant. The Holding Company is providing
+regular updates to US-FDA on the progress of the corrective actions committed in the response to warning letter.
+The Holding Company is continuing to manufacture and distribute products to the U.S from Halol facility and at the
+same time working closely and co-operatively with the US-FDA to resolve the matter.
+53 In the absence of net profits in the Holding Company for the previous year ended 31st March, 2015, remuneration to
+the Managing Director and a Whole-time Director of the Holding Company for the previous year ended 31st March,
+2015 was in excess of the limits specified under Schedule V to the Companies Act, 2013 by 20.7 Million. In this
+regard the Holding Company had made necessary applications to the Central Government of India for approving of
+the amounts of maximum remuneration payable, which includes the excess amounts already paid / provided. During
+the year, the Holding Company has received a letter from the Central Government of India approving the remuneration
+of 6.0 Million per annum each to the Managing Director and each of Whole-time Directors of the Holding Company
+for the three years ending 31st March, 2017, which is lower than the limits of maximum remuneration prescribed
+under Schedule V to the Companies Act, 2013, and in respect of which, the Holding Company has made further
+representations to the Central Government of India. The response in respect of the foregoing is awaited from the
+Central Government of India. For the current year, the remuneration paid is within the limits prescribed under Schedule
+V to the Companies Act, 2013. On receipt of the approval from the Central Government of India, the balance amount
+of remuneration for the current year, as per their entitlement, shall be paid to the Managing Director and a Whole-time
+Director, as applicable, and the same shall be given effect to in the year in which the approval is received.
+54 Pursuant to the Scheme of Arrangement u/s 391 to 394 of the Companies Act, 1956 for amalgamation of erstwhile
+RLL with the Holding Company as sanctioned by the Hon'ble High Court of Gujarat and Hon'ble High Court of
+Punjab and Haryana on 24th March, 2015 (effective date) all the assets, liabilities and reserves of erstwhile RLL were
+transferred to and vested in the Holding Company with effect from 1st April 2014, the appointed date. Erstwhile RLL
+along with its subsidiaries and associates was operating as an integrated international pharmaceutical organisation
+with business encompassing the entire value chain in the production, marketing and distribution of pharmaceutical
+products. The scheme was accordingly been given effect to in the Consolidated Financial Statements for the year
+ended 31st March, 2015.
+-
+The amalgamation was accounted for under the "Pooling of Interest Method" as prescribed under Accounting Standard
+14 "Accounting for Amalgamations" (AS 14) as specified under section 133 of the Companies Act 2013. Accordingly
+and giving effect in compliance of the Scheme of Arrangement all the assets, liabilities and reserves of erstwhile RLL
+were recorded in the books of the Holding Company at their carrying amounts and in the same form as at the appointed
+date in the books of erstwhile RLL.
+On 10th April, 2015, in terms of the Scheme of Arrangement 0.8 equity share of ₹1 each (Number of Shares
+334,956,764 including 186,516 Shares held by ESOP trust) of the Holding Company has been allotted to the
+shareholders of erstwhile RLL for every 1 share of ₹5 each (Number of Shares 418,695,955 including 233,146 shares
+held by ESOP trust) held by them in the share capital of erstwhile RLL, after cancellation of 6,967,542 shares of
+erstwhile RLL. These shares were considered for the purpose of calculation of earnings per share appropriately. The net
+effect of 982.5 Million being the difference between the amount recorded as share capital, the amount of the share
+capital of erstwhile RLL and cancellation of shares of erstwhile RLL has been reduced from Reserves.
+55 Erstwhile RLL had early adopted Accounting Standard (AS) 30 "Financial Instruments: Recognition and Measurement"
+and AS 31 "Financial Instruments: Presentation" for accounting of derivative instruments which are outside the scope
+193
+SUN
+NOTES
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+of Accounting Standard 11 'The Effects of Changes in Foreign Exchange Rates' such as forward contracts to hedge
+highly probable forecast transactions, option contracts, currency swaps, interest rate swaps etc. In order to align with
+the Group's accounting policy, derivative instruments were accounted for in accordance with the announcement
+issued by the Institute of Chartered Accountants of India dated 28th March, 2008. On the principles of prudence as
+enunciated in Accounting Standard 1 "Disclosure of Accounting Policies" which requires to provide losses in respect of
+all outstanding derivative instruments at the balance sheet date by marking them to market. Accordingly, the unrealised
+MTM gain of 905.4 Million as at 1st April, 2014 was reversed in the Consolidated Financial Statements for the year
+ended 31st March, 2015.
+56 Out of a MAT credit entitlement of ₹ 8,222.7 Million which was written down by the erstwhile RLL during the quarter
+ended 31st December, 2014, an amount of 7,517.0 Million was recognized by the Holding Company in the year
+ended 31st March, 2015, on a reassessment by the Management, based on convincing evidence that the combined
+amalgamated entity would pay normal income tax during the specified period and would therefore be able to utilize the
+MAT credit so recognised. Current tax for the previous year also includes ₹ 285.1 Million pertaining to earlier years.
+57 Details of Long term borrowings and current maturities of long term debt and finance lease obligations (included under
+Other Current Liabilities)
+Secured Term Loan from banks:
+A
+(I)
+B
+C
+― ANNUAL REPORT 2015-16
+D
+STATUTORY REPORTS
+06 - 84
+CORPORATE OVERVIEW
+(21,578)
+1,184.6
+As at 31st March, 2016
+Product and
+Sales related*
+Consultancy
+Charges
+Add/(Less): Foreign currency translation Difference
+Closing balance
+11,905.3
+(12,830.5)
+(1,184.6)
+2,517.5
+45,396.6
+* Includes provision for Trade commitments, discounts, rebates, product returns, Medicaids and contingency provision.
+51 a)
+02 - 05
+b)
+b)
+38,251.2
+2,573.6
+15,133.1
+(13,164.8)
+1,184.6
+1,011.2
+43,804.3
+1,184.6
+Exceptional items for the year ended 31st March, 2016 represents charge on account of impairment of fixed assets
+and other related costs and write down of the carrying value of goodwill on consolidation. This charge has arisen
+on account of the integration and optimization exercise being carried out for certain manufacturing facilities.
+Exceptional item for the year ended 31st March, 2015 represents the settlement provision for a litigation
+concerning its participation in the Texas Medicaid Program. Under the settlement agreement, the Group is making
+payments to the State of Texas in a series of tranches through August 2015. The Group had settled the matter to
+avoid any further distraction and uncertainty of continued litigation with the State of Texas.
+Since the US-FDA issued an import alert on cephalosporin product manufactured at Karkhadi facility in March
+2014, the Holding Company remained fully committed to implement all corrective measures to address the
+observations made by the US-FDA with the help of third party consultant. Substantial progress has been made at
+the Karkhadi facility in terms of completing the action items to address the observations made by the US-FDA in its
+warning letter issued in May 2014. The Holding Company is continuing to work closely and co-operatively with the
+US-FDA to resolve the matter. The contribution of this facility to Holding Company's revenues is not significant.
+The US-FDA, on 23rd January, 2014, had prohibited using API manufactured at Toansa facility for manufacture of
+finished drug products intended for distribution in the U.S. market. Consequentially, the Toansa manufacturing
+facility was subject to certain terms of the consent decree of permanent injunction entered into by the Holding
+Company in January 2012. In addition, the Department of Justice of the USA ('US DOJ'), United States Attorney's
+Office for the District of New Jersey had also issued an administrative subpoena dated 13th March, 2014 seeking
+information primarily related to Toansa manufacturing facility for which a Form 483 containing findings of the US-
+FDA was issued in January 2014. The Holding Company is continuing to fully cooperate and is in dialogue with the
+US DOJ, and continuing to provide requisite information.
+192
+52 a)
+Long term loan of Nil (Previous Year USD 5.9 Million - 368.0 Million) [Included in long term borrowings Nil
+(Previous Year 311.0 Million) and Nil (Previous Year 57.0 Million) in current maturities of long term debt]
+which was repayable by October 2020 has been repaid during the year. The loan was secured by building
+situated at New York.
+(II) Loan of Nil (Previous Year BRL 0.8 Million - 16.4 Million) included in long term borrowings Nil (Previous
+Year 16.4 Million) which was repayable by December 2016 has been repaid during the year. The loan was
+secured by land and factory building situated at Goiania, Brazil.
+Secured Term Loan from Other Parties:
+Particulars
+Rated Unsecured Listed Redeemable 5,000
+Non-Convertible Debentures Series 2
+Rated Unsecured Listed Redeemable 5,000
+Non-Convertible Debentures Series 1
+1,000,000
+Face Value (*) Redemption Amount
+(in Million)
+5,000.0
+Date of Redemption
+23rd March, 2019
+1,000,000
+5,000.0
+22nd December, 2017
+195
+10,000.0 Million (Previous Year Nil) Rated unsecured listed redeemable non-convertible debentures at a
+coupon rate of 7.94% p.a. were issued by Sun Pharma Laboratories Limited ("SPLL" - the Wholly owned subsidiary)
+on 23rd December, 2015. Following are the details:
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+F Unsecured Term Loan from Other Parties:
+G
+Unsecured loan from other parties amounting to Nil (Previous Year 513.1 Million) of which Nil (Previous Year
+*497.6 Million) was repayable after August 2016 on demand and balance of Nil (Previous Year 15.5 Million) was
+repayable after March 2016 on demand. The above loans has been repaid during the year.
+Term Loan from banks and Debentures (included under current maturities of long term borrowing):
+(I)
+Nil (Previous Year 5,000.0 Million) redeemable non-convertible debentures issued on 23rd November,
+2012 for a period of 36 months at a coupon rate of 9.20% p.a. were repaid during the year. Such debentures
+were secured by a pari-passu first ranking charge on the Holding Company's specified fixed assets so as to
+provide a fixed asset cover of 1.25x and were listed on the National Stock Exchange.
+(II) Loan of Nil (Previous Year 2,500.0 Million) was repaid during the year.
+PHARMA
+E Unsecured Debentures:
+(III) Foreign Currency Non Resident Loan (FCNR) Scheme of USD 50 Million equivalent to ₹3,313.0 Million
+(Previous Year Nil). The loan was taken on 19th August, 2015 and is repayable on 18th August, 2017.
+(h) USD 30.0 Million equivalent to 1,987.8 Million (Previous Year Nil). The loan was taken on 9th
+September, 2015 and is repayable on 8th September, 2017.
+The Holding Company has term loan from Department of Biotechnology of 77.3 Million (Previous Year
+77.3 Million) secured by hypothecation of assets and goods of the Holding Company. The loan is repayable in
+10 (Previous Year 10) half yearly installments of ₹ 7.7 Million (Previous Year 7.7 Million) each commencing from
+26th September, 2017. Last installment is due on 26th March, 2022.
+Lease obligations of USD 11.3 Million equivalent to 748.5 Million (Previous Year USD 0.4 Million equivalent to
+24.1 Million) [included in long term borrowing * 715.8 Million (Previous Year 2.2 Million) and 32.7 Million
+(Previous Year 21.9 Million) in current maturities of long term finance lease obligations] repayable by
+FY 2019-2025 is secured against assets taken on finance lease.
+Unsecured Term Loan from banks:
+(I)
+Loan of USD 18.2 Million equivalent 1,206.7 Million (Previous Year USD 18.9 Million equivalent ₹ 1,181.6
+Million) [Included in long term borrowings 1,158.8 Million (Previous Year 1,138.3 Million) and * 47.9 Million
+(Previous Year 43.3 Million) in current maturities of long term debt] which is repayable in varying amounts by
+June 2033. The loan is collateralized by substantially all the assets of Pharmalucence Inc.
+(II) External Commercial Borrowings (ECBs) has 6 loans aggregating to USD 266.0 Million equivalent to
+* 17,625.2 Million (Previous Year USD 288.0 Million 18,001.4 Million) [Included in long term borrowings
+* 15,902.4 Million (Previous Year 11,625.9 Million) and ₹1,722.8 Million (Previous Year 6,375.5 Million)
+194
+-
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+in current maturities of long term debt]. For the loans outstanding as at 31st March, 2016, the terms of
+repayment of borrowings are as follows:
+(a) Nil (Previous Year USD 50.0 Million) equivalent to Nil (Previous Year 3125.2 Million) The loan was taken
+on 12th August, 2010. The outstanding amount has been repaid in Current Year.
+(b) Nil (Previous Year USD 30.0 Million) equivalent to Nil (Previous Year 1,875.2 Million) The loan was taken
+on 9th September, 2010. The outstanding amount has been repaid in Current Year.
+(c) USD 20.0 Million equivalent to 1,325.2 Million (Previous Year USD 30.0 Million ₹ 1,875.2 Million). The
+loan was taken on 30th June, 2011 and is repayable in 3 equal installments at the end of 4th year, 5th
+year and 6th year. First installment of USD 10 Million equivalent to 637.9 Million has been repaid in
+current year and the last instalment is due on 30th June, 2017.
+(d) USD 50.0 Million equivalent to 3,313.0 Million (Previous Year USD 50.0 Million 3,125.2 Million). The
+loan was taken on 20th September, 2012 and is repayable on 19th September, 2017.
+(e) USD 100.0 Million equivalent to ₹6,626.0 Million (Previous Year USD 100.0 Million 6,250.5 Million). The
+loan was taken on 4th June, 2013 and is repayable on 3rd June, 2018.
+(f) USD 16.0 Million equivalent to 1,060.2 Million (Previous Year USD 28.0 Million
+1,750.1 Million). Loan
+of USD 40 Million was taken on 25th March, 2011 and is repayable in 3 installments viz., 30% each of the
+drawn amount at the end of 4th year and 5th year each and 40% of the drawn amount at the end of the
+6th year. Second installment of USD 12.0 Million has been repaid in current year. First instalment of USD
+12.0 was repaid in previous year. The last instalment is due on 24th March, 2017.
+(g) USD 50.0 Million equivalent to ₹3,313.0 Million (Previous Year Nil). The loan was taken on 11th August,
+2015 and is repayable on 11th August, 2017.
+58 DETAILS OF SECURITIES FOR SHORT TERM BORROWINGS ARE AS UNDER:
+(0.00)
+(0.0)
+4
+RON
+Sell
+RUB
+Interest rate swaps
+**
+Currency options
+Currency Options
+Currency swaps
+Forward contracts
+1.7
+RON
+62.6
+Sell
+Forward contracts
+170.0
+14.0
+INR
+Buy
+US Dollar
+Forward contracts
+6.7
+US Dollar
+Sell
+Interest Rate Swaps (Floating to Fixed)
+PLN
+24.9
+US Dollar
+INR
+Sell
+ZAR
+100.0
+50.0
+INR
+Buy
+US Dollar
+** structured options @ 2.00 to 2.50 times
+Currency cum interest rate swaps
+Forward contracts
+40.0
+INR
+Buy
+Buy
+71.0
+1.0
+INR
+Sell
+US Dollar
+100.0
+100.0
+INR
+Buy
+US Dollar
+30.0
+US Dollar
+CAD
+Sell
+US Dollar
+(-)
+(-)
+the year
+Outstanding at the end of
+(-)
+(-)
+(57.0)
+(55.03 -60.38)
+(-)
+Forfeited during the year
+(85.0)
+(-)
+(0.6)
+(26.09)
+(1,000)
+Exercised during the year
+(85.0)
+(0.6)
+(26.09)
+(26.09)
+(1,000)
+Outstanding at the
+beginning of the year
+(in Years)
+(In USD)
+(26.09)
+Previous Year figures are in brackets.
+CORPORATE OVERVIEW
+02 - 05
+Forward Contracts
+26.1
+NIS
+Sell
+US Dollar
+Forward Contracts
+350.0
+140.0
+INR
+Sell
+US Dollar
+Forward Contract
+31st March, 2015
+Amount in Million
+31st March, 2016
+Amount in Million
+As at
+As at
+Cross
+Currency
+Buy/Sell
+Currency
+Nature of Derivative Contract
+45 The following are the outstanding contracts of derivative instruments entered by the Holding Company and some of its
+Subsidiaries as on 31st March, 2016:
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+INR
+42.5
+46 Taro Pharmaceutical Industries Ltd had closed during 2010, i.e., prior to acquiring control by the Holding Company,
+the manufacturing facility of its subsidiary in Ireland and decided to sell the facility. The management of the Group is of
+the view that the closure does not have material impact on the Group's financials. The related assets of ₹ 79.5 Million
+(Previous Year 79.9 Million), Liabilities of 1.3 Million (Previous Year 0.7 Million), Revenues of Nil (Previous Year
+Nil) and Losses of 15.4 Million (Previous Year 47.5 Million) attributable to its Irish Subsidiary have been considered
+in the Consolidated Financial Statements.
+47 a) Deferred tax asset on unabsorbed depreciation/carry forward losses of the Holding Company have been restricted
+to the extent of deferred tax liability.
+7
+Softdeal Trading Company Private Limited
+0.00
+10.1
+0.00
+8.7
+0.00
+1.5
+8
+Ranbaxy Drugs Limited
+0.07
+(18.1)
+215.9
+1,730.1
+0.00
+0.4
+9
+Vidyut Investments Limited
+0.01
+24.8
+0.01
+23.6
+0.00
+1.1
+0.68
+(0.04)
+(154.3)
+(0.33)
+Neetnav Real Estate Private Limited
+0.00
+15.1
+0.01
+14.0
+0.00
+1.1
+0.00
+1.8
+5
+Realstone Multitrade Private Limited
+0.00
+10.7
+0.00
+9.1
+0.00
+1.6
+(0.00)
+(0.0)
+6
+Skisen Labs Private Limited
+0.00
+0.1
+(0.00)
+(9.1)
+10
+Contractual Terms
+Gufic Pharma Limited
+4.2
+13
+Solrex Pharmaceuticals Company
+43,804.3
+Consultancy
+Charges
+As at 31st March, 2016
+Product and
+Sales related*
+Less: Utilisation/Settlement
+Add: Provision for the year
+(Refer Note 54)
+Add: Pursuant to the Scheme of Amalgamation
+Opening balance
+Provision
+(0.2)
+Particulars
+b) The Holding Company holds 24.91% in the capital of Shimal Research Laboratories Limited. However, as the
+Holding Company does not have any 'Significant Influence' in Shimal Research Laboratories Limited, as is
+required under AS 23 -" Accounting for Investments in Associates in Consolidated Financial Statements", the
+said investment in Shimal Research Laboratories Limited has not been consolidated as an "Associate Entity".
+Accordingly, the investment in Shimal Research Laboratories Limited is accounted in accordance with Accounting
+Standard 13 - "Accounting for Investments".
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+191
+49 a) Sun Pharma Global FZE, a subsidiary of the Holding Company holds 23.35% in the capital of Enceladus
+Pharmaceutical B.V. However, as Sun Pharma Global FZE does not have any 'Significant Influence' in Enceladus
+Pharmaceutical B.V., as is required under AS 23 -" Accounting for Investments in Associates in Consolidated
+Financial Statements", the said investment in Enceladus Pharmaceutical B.V. has not been consolidated as an
+"Associate Entity". Accordingly, the investment in Enceladus Pharmaceutical B.V. is accounted in accordance with
+Accounting Standard 13 - "Accounting for Investments".
+48 Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with
+Schedule VII thereof: 171.0 Million (Previous Year 74.3 Million).
+b) Deferred tax asset on unabsorbed losses is mainly pertaining to two subsidiaries. In case of one subsidiary, losses
+have arisen mainly on account of one time impairment loss recognised as an exceptional item during the year
+and having regard to the history of profits/growth in operations, the Management believes that there is virtual
+certainty supported by convincing evidence that sufficient future taxable income will be available against which
+such deferred tax assets can be realised. In respect of another subsidiary, which is acquired during the year,
+having regard to contracts entered for providing services, the Management believes that there is virtual certainty
+supported by convincing evidence that sufficient future taxable income will be available against which such
+deferred tax assets can be realised.
+50 In respect of any present obligation as a result of a past event that could lead to a probable outflow of resources,
+provision has been made, which would be required to settle the obligation. The said provisions are made as per
+the best estimate of the management and disclosure as per Accounting Standard (AS) 29 - "Provisions, Contingent
+Liabilities and Contingent Assets" has been given below:
+(0.00)
+2,776.2
+1.08
+0.00
+4.0
+0.00
+0.2
+11
+Universal Enterprises (Pvt) Ltd.
+0.00
+5.3
+0.00
+5.3
+0.00
+0.0
+54420
+(0.00)
+(0.0)
+0.07
+30.1
+0.00
+1.2
+0.00
+0.2
+(0.00)
+(0.0)
+12
+Silverstreet Developers LLP
+0.00
+Forfeited during the year
+6
+426.2
+(1,117.1)
+14
+Alkaloida Chemical Company Zrt.
+8.41
+26,395.3
+13.78
+35,309.1
+(1.45)
+(685.7)
+(2.59)
+(1,174.9)
+(2.46)
+15
+(0.03)
+(107.0)
+(0.03)
+(84.3)
+(0.05)
+(21.2)
+0.05
+23.9
+16
+Sun Pharmaceutical Industries
+0.76
+Sun Pharmaceutical UK Ltd.
+(3,326.5)
+(7.05)
+53,140.6
+11
+Ranbaxy Malaysia Sdn. Bhd.
+0.09
+294.0
+0.26
+665.4
+(0.76)
+(358.1)
+(0.70)
+(318.3)
+12
+Ranbaxy Nigeria Limited
+0.34
+1,055.6
+0.35
+906.0
+0.22
+104.8
+0.12
+55.1
+13
+Ranbaxy (Netherlands) B.V.
+16.87
+52,964.2
+20.74
+2,394.6
+(0.04)
+(95.7)
+(0.52)
+(315.5)
+(0.05)
+(23.7)
+0.01
+6.7
+20
+Sun Pharmaceutical Spain, S.L.U.
+(0.12)
+(371.0)
+(0.11)
+(274.8)
+(0.13)
+(61.2)
+(0.07)
+(31.2)
+21
+Sun Pharmaceuticals Germany GmbH
+(0.07)
+(204.7)
+(186.4)
+0.01
+5.9
+0.02
+10.1
+3.4
+(0.12)
+(489.2)
+(379.3)
+Sun Pharmaceuticals Italia S.R.L.
+(246.8)
+(0.13)
+(58.9)
+(Australia) Pty Limited
+17
+Aditya Acquisition Company Ltd.
+0.00
+0.1
+(0.00)
+(8.2)
+0.02
+8.6
+(0.02)
+(8.2)
+18
+Sun Pharmaceutical Industries (Europe) B.V.
+(0.05)
+(148.8)
+(0.06)
+(146.4)
+0.03
+15.9
+0.06
+25.6
+19
+(0.12)
+(1.08)
+(0.07)
+(0.27)
+2
+Sun Pharmaceutical (Bangladesh) Ltd.
+0.23
+721.1
+0.21
+527.6
+0.34
+162.5
+0.36
+163.8
+3
+Sun Pharmaceutical Industries, Inc. (Consolidated
+4.55
+14,281.4
+5.56
+14,239.4
+(1.81)#
+(855.3)
+5.87
+2,665.4
+with its Subsidiaries, Jointly Controlled Entity and
+an Associate)
+4
+Sun Farmaceutica Do Brasil Ltda.
+(0.69)
+(2.9)
+(2,153.1)
+(0.01)
+1
+216.00-561.00
+(125.8)
+3,579,582
+Pursuant to the Scheme of Amalgamation
+prices (*)
+prices (*)
+Weighted-average
+remaining contractual
+life (years)
+Stock options Range of exercise
+The movement of the options (post split) granted under ESOS II and SUN-ESOS 2015 for the previous year is given below:
+(numbers)
+FINANCIAL STATEMENTS
+85 - 206
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+0.58
+1,834.1
+0.68
+1,734.3
+0.26
+123.0
+0.14
+61.9
+Foreign
+Sun Pharma Global Inc.
+(0.64)
+Weighted-
+average exercise
+(1.28)
+OOO "Sun Pharmaceutical Industries" Ltd.
+(0.05)
+(165.0)
+(0.02)
+(61.4)
+(0.26)
+(123.3)
+(0.06)
+(25.6)
+9
+Sun Pharma De Venezuela, C.A.
+8
+(0.37)
+(0.39)
+(1,001.8)
+(1.62)
+(761.7)
+(0.96)
+(434.4)
+10
+(1,332.9)
+Ranbaxy Pharmacie Generiques
+(1,623.8)
+(1,638.0)
+(1,152.5)
+(30.1)
+(0.52)
+(29.7)
+(603.4)
+(0.07)
+(2.34)
+(1,060.3)
+5
+Sun Pharma De Mexico S.A. DE C.V.
+0.23
+710.1
+0.23
+577.1
+0.37
+173.2
+0.54
+(0.52)
+SPIL De Mexico S.A. DE C.V.
+246.6
+(102.2)
+(0.04)
+(127.9)
+(0.04)
+Sun Pharmaceutical Peru S.A.C.
+(0.06)
+7
+0.2
+0.00
+0.00
+0.2
+1,052.0
+1,945.1
+2,006.0
+35.4
+100.00%
+94
+Ranbaxy Pharmaceuticals Canada Inc.
+CAD
+51.13
+115.1
+299.3
+1,457.0
+1,042.6
+7,665.5
+(1,361.0)
+100.00%
+95
+S. C. Terapia S.A.
+RON
+16.83
+421.2
+9,468.6 13,143.8
+3,254.0
+81.3
+100.00%
+50.86
+BRL
+9,124.7
+18.43
+320.0
+(1,339.0)
+900.7
+1,919.7
+1,133.3
+(414.7)
+100.00%
+92
+Ranbaxy Europe Limited
+BRL
+95.32
+173.6
+226.8
+52.2
+271.9
+21.2
+6.1
+93
+Ranbaxy Australia Pty Ltd
+AUD
+467.9
+1.0
+66.26
+341.4
+66.26
+0.0
+11,761.8
+647.1
+52,974.3
+10.1
+109.9
+1,945.2
+1,298.1
+93.0
+205.1
+(465.3)
+(1,112.4)
+33
+100.00%
+100.00%
+100.00%
+100.00%
+Note:
+1
+0.0' represents amount less than 0.05 million and rounded off
+2
+205-
+The above does not include 3 Skyline LLC, One Commerce Drive LLC, Sirius Laboratories Inc, Perryton Wind Power LLC, Insite Vision Ltd., Dusa Pharmaceuticals New York Inc., Taro Pharmaceutical
+Laboratories Inc being subsidiaries of Taro Pharmaceutical Industries Ltd, Caraco Pharma Inc. as they have no operation and does not have any Assets, Liabilities or Equity as on the close of their
+Financial Year.
+Ranbaxy Farmaceutica Ltda.,
+With effect from 20th August, 2015 Caraco Pharma Inc., has been merged with Sun Pharmaceutical Industries, Inc.
+USD
+Insite Vision Incorporated
+99
+41,202.4
+96.70%
+96
+Be-Tabs Investments Proprietary Limited
+ZAR
+4.47
+0.0
+14.0
+15.9
+1.9
+(0.6)
+1.3
+2,281.3
+97
+EURO
+75.28
+0.4
+(0.4)
+0.0
+(1.6)
+0.1
+Farmaceuticos Unipessoal Lda
+98
+Ranbaxy (Netherlands) B.V.
+USD
+Ranbaxy Portugal - Com E Desenvolv DeProd
+91
+86
+(376.1)
+100.00%
+84
+Ranbaxy Signature LLC
+USD
+66.26
+3.3
+(362.9)
+14.5
+374.1
+273.1
+229.7
+67.50%
+85
+Ranbaxy Pharmaceuticals Inc.
+USD
+66.26
+0.0
+6,701.7
+64,498.8
+57,797.1
+17,953.1
+334.5
+145.8
+1,952.6
+5,526.0
+13,682.9
+20,973.1
+With effect from 1st April, 2015, AR Scientific Inc. and United Research Laboratories Limited, have merged into URL Pharma Inc.,
+205.7
+1.5
+3.5
+100.00%
+82
+Ohm Laboratories Inc.
+USD
+66.26
+1201.2
+3248.9
+100.00%
+31,045.8
+20,632.5
+(1,810.2)
+(624.5)
+100.00%
+83
+Ranbaxy Laboratories Inc.
+USD
+66.26
+1,991.9
+8,055.5
+31,020.5
+26,595.7
+71.22%
+Ranbaxy Inc.
+66.26
+109.8
+42.7
+100.00%
+89
+Laboratorios Ranbaxy, S.L.
+EURO
+75.28
+75.3
+93.5
+1,398.8
+1,230.0
+1,421.9
+191.1
+100.00%
+90
+Ranbaxy (Malaysia) Sdn. Bhd.
+MYR
+16.97
+135.8
+161.1
+1,521.6
+1,224.7
+1,320.9
+3,545.2
+2,966.2 2,352.4
+454.6
+159.2
+3,789.2
+11899.1
+38,249.3
+22,561.0
+1,300.1
+(11.1)
+87.1
+100.00%
+87
+Ranbaxy Ireland Ltd
+EURO
+USD
+75.28
+427.3
+2,010.7
+1,048.0
+3,448.3
+(306.9)
+(10.6)
+100.00%
+88
+AO Ranbaxy (Formerly Known ZAO Ranbaxy)
+RUB
+0.98
+535.4
+With effect from 28th April, 2015, URL Pharma Inc., has merged into Mutual Pharmaceutical Company, Inc.
+SAILESH T. DESAI
+With effect from 2nd November, 2015, Thea Acquisition Corporation has been merged with Insite Vision Incorporated.
+AUDITORS
+Deloitte Haskins & Sells
+Chartered Accountants, Mumbai
+BANKERS
+Bank of Baroda
+Bank of Nova Scotia
+Citibank N.A
+Deutsche Bank
+Hong Kong and Shanghai Banking
+Corporation Ltd
+ICICI Bank Ltd
+Kotak Mahindra Bank Ltd
+Punjab National Bank
+Royal Bank of Scotland
+Standard Chartered
+State Bank of India
+REGISTRARS & SHARE TRANSFER
+AGENTS
+Link Intime India Pvt. Ltd.
+C/13, Kantilal Maganlal Estate,
+Pannalal Silk Mills Compound,
+LBS Marg, Bhandup (West),
+Mumbai - 400 078
+Tel: (022)-25946970
+Fax: (022)-25946969
+E-mail: sunpharma@linkintime.co.in
+rnt.helpdesk@linkintime.co.in
+PLANTS
+1. Silvassa, Dadra & Nagar Haveli, India.
+2. Dadra, Dadra & Nagar Haveli, India.
+3. Halol, Gujarat, India.
+4. Panoli, Gujarat, India.
+email: secretarial@sunpharma.com
+Sunil R. Ajmera
+COMPANY SECRETARY
+CHIEF FINANCIAL OFFICER
+Uday V. Baldota
+SUDHIR V. VALIA
+Wholetime Director
+Mumbai
+99.4
+Wholetime Director
+Mumbai
+Date: 30th May, 2016
+NOTES
+-
+207
+SUN
+PHARMA
+CORPORATE INFORMATION
+BOARD OF DIRECTORS
+5. Ankleshwar, Gujarat, India.
+Israel Makov
+Chairman
+Sudhir V. Valia
+Whole-time Director
+Sailesh T. Desai
+Whole-time Director
+S. Mohanchand Dadha
+Director
+Hasmukh S. Shah
+Director
+Keki M. Mistry
+Director
+Ashwin Dani
+Director
+Rekha Sethi
+Director
+Dilip S. Shanghvi
+Managing Director
+DILIP S. SHANGHVI
+Managing Director
+New York
+6. Karkhadi, Gujarat, India.
+8. Maduranthakamm, Tamil Nadu, India.
+40. URL Pharmaceuticals Inc. Aurora, USA.
+41. URL Pharmaceuticals Inc.
+Philadelphia, USA.
+42. Pharmalucence Inc.
+Billerica, Massachusetts, USA.
+43. Ohm Laboratories, Inc.
+Brunswick, New Jersey, USA.
+44. Sun Pharmaceutical Industries
+(Australia) Pty Ltd, Latrobe, Australia
+45. Sun Pharmaceutical Industries
+(Australia) Pty Ltd, Port Fairy, Australia
+OFFICES
+Registered Office
+Sun Pharma Advanced Research Centre
+(SPARC), Tandalja,
+Vadodara 390 020, Gujarat.
+-
+Corporate Office
+SUN HOUSE, CTS No. 201 B/1,
+Western Express Highway,
+Goregaon (E), Mumbai 400063,
+Maharashtra.
+MAJOR RESEARCH CENTRES
+1. F.P.27, Part Survey No. 27,
+C.S. No. 1050, TPS No. 24, Village
+Tandalja, District, Vadodara - 390 020,
+Gujarat.
+2. 17-B, Mahal Industrial Estate, Mahakali
+Caves Road, Andheri (East),
+Mumbai - 400 093, Maharashtra.
+3. Village Sarhaul, Sector-18,
+Gurgaon-122015 (Haryana).
+4. Chemistry and Discovery Research
+Israel, 14 Hakitor Street, P.O. Box 10347
+Haifa Bay 2624761, Israel.
+5. Taro Pharmaceuticals Inc., 130 East
+Drive, Brampton, Ontario L6T 1C1,
+Canada.
+6. Ohm Laboratories Inc., Terminal Road,
+New Brunswick, New Jersey 08901 USA
+208
+Cranbury, New Jersey, USA.
+39. Sun Pharmaceutical Industries Inc.
+Wilmington, Massachusetts, USA.
+38. Dusa Pharmaceuticals Inc.
+9. Dahej, Gujarat, India.
+10. Mohali, Punjab, India.
+11. Ponda, Goa, India.
+12. Paonta Sahib, Himachal Pradesh, India.
+13. Batamandi, Himachal Pradesh, India.
+14. Baddi, Himachal Pradesh, India.
+15. Baddi -2, Himachal Pradesh, India.
+16. Dewas, Madhya Pradesh, India.
+17. Malanpur, Madhya Pradesh, India.
+18. Toansa, Punjab, India.
+19. Sun Pharma Laboratories Ltd.
+Jammu, Jammu & Kashmir, India.
+20. Sun Pharma Laboratories Ltd.
+Samba, Jammu & Kashmir, India.
+21. Sun Pharma Laboratories Ltd.
+Ranipool, Sikkim, India.
+22. Sun Pharma Laboratories Ltd.
+Setipool, Sikkim, India.
+23. Sun Pharmaceutical (Bangladesh) Ltd.
+Joydevpur, Gazipur, Bangladesh.
+24. Sun Farmaceutica Do Brasil Ltda (TKS
+Farmaceutica Ltda) Jardim Pompeia,
+Goiania, Brazil.
+25. Ranbaxy Farmaceutica Ltda
+São Gonçalo, Rio de Janeiro, Brazil.
+26. Taro Pharmaceuticals Inc.
+Brampton, Ontario, Canada.
+27. Ranbaxy Egypt (L.L.C.)
+7. Ahmednagar, Maharashtra, India.
+October City, Giza, Egypt.
+29. Ranbaxy Ireland Ltd.
+Cashel, Tipperary, Ireland
+30. Taro Pharmaceutical Industries Ltd.
+Haifa Bay, Israel.
+31. Ranbaxy Malaysia Sdn. Bhd.
+Kuala Lumpur, Malaysia.
+32. Ranbaxy Morocco LLC
+Casablanca, Morocco.
+33. Sun Pharma de Mexico S.A.
+El Sifon, Iztapalapa, Mexico.
+34. Ranbaxy Nigeria Limited
+Lagos, Nigeria.
+35. S.C Terapia S. A. Cluj, Romania.
+36. Ranbaxy Pharmaceuticals (Pty) Ltd.
+Roodepoort, Johannesburg, South
+Africa.
+37. Chattem Chemicals, Inc.
+Chattanooga, USA.
+28. Alkaloida Chemical Company Zrt
+Tiszavasvari, Kabay, Hungary.
+During the year, the Group has sold its investment in Silverstreet Developers LLP with effect from 1st April, 2015.
+For and on behalf of the Board
+SUNIL R. AJMERA
+1.
+Latest audited Balance Sheet Date
+31-Dec-15
+31-Mar-16
+31-Mar-16
+31-Mar-16
+31-Mar-16
+NA
+2.
+Shares of Associate/Joint Ventures
+held by the company on the year
+end
+No.
+15,853
+ΝΑ
+Amount of Investment in
+280.9
+0.7
+NA
+383.4
+16,127,293
+890,874
+2,463.5
+116,676
+296.8
+B.V.
+Limited
+Laboratories
+Pharmaceutical
+Zalicus Pharmaceuticals Limited was acquired during the year and subsequently amalgamated in Taro Pharmaceuticals Inc., on 5th October, 2015.
+Ranbaxy Portugal - Com E Desenvolv DeProd Farmaceuticos Unipessoal Lda has been liquidated on 30th June, 2015.
+With effect from 1st March, 2016, Ranbaxy Belgium N.V., has been liquidated.
+3456789
+10
+-205
+206
+PART "B" : ASSOCIATE COMPANIES AND JOINT VENTURES
+*In Million
+SUN
+PHARMA
+- ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+11 Jhat's
+Associates/Joint Venture
+Sr. No Name of Associates/Joint Ventures
+Artes
+Zenotech
+Daiichi Sankyo
+Associate
+Enceladus
+Biotechnology
+MSD - Sun LLC
+S & I
+Ophthalmic LLC
+GmbH
+Laboratories
+Limited
+(Thailand)
+Jointly Controlled Entity
+Company Secretary
+Mumbai
+Extend of Holding %
+50.00%
+1,259.5
+NA
+Shareholding as per latest audited
+Balance Sheet
+6.
+Profit / Loss for the year
+i. Considered in Consolidation
+3.4
+184.0
+(135.3)
+(143.2)
+17.6
+NA
+ii. Not Considered in Consolidation
+4.1
+184.0
+(135.3)
+143.2
+(17.6)
+ΝΑ
+ΝΑ
+(478.4)
+UDAY V. BALDOTA
+Chief Financial Officer
+Mumbai
+(272.6)
+383.4
+0.7
+62.5
+50.00%
+46.84
+26.9
+23.35%
+3.
+Description of how there is
+ΝΑ
+NA
+ΝΑ
+ΝΑ
+NA
+45.00%
+ΝΑ
+4.
+Reason why the associate/joint
+ΝΑ
+NA
+NA
+NA
+NA
+Refer note 49(a)
+venture is not consolidated
+5.
+Networth attributable to
+significant influence
+85.31%
+Ranbaxy Italia S.P.A
+254.9
+Rate Capital Reserve
+Total
+Total
+No
+Curency
+Assets
+Liabilities
+Other than
+investment in
+subsidiary
+Investments Turnover
+Profit/
+(Loss) before
+Provision
+for Taxation
+Profit/ Proposed
+Dividend
+% of
+Shareholding
+Taxation
+56
+Sun Pharma Holdings
+USD
+66.26 226,665.0
+373.3
+Reporting
+227,042.4
+Sr Name of the Subsidiary Company
+85 - 206
+FINANCIAL STATEMENTS -
+10.1
+2.2
+0.7
+1.5
+100.00%
+0.0
+100.00%
+55
+Sun Pharma Switzerland Limited
+68.60
+6.9
+(1.5)
+5.7
+0.3
+(0.5)
+(0.5)
+100.00%
+-204
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+CORPORATE OVERVIEW
+02-05
+06 - 84
+STATUTORY REPORTS
+*In Million
+4.1
+(3.2)
+57
+236.7
+125.7
+(48.7)
+(14.0)
+60
+Ranbaxy Drugs Limited
+INR
+1.00
+31.0
+1,822.3
+1,854.2
+0.9
+1,824.7
+123.3
+61
+Vidyut Investments Limited
+INR
+1.00
+250.1
+(223.8)
+26.5
+0.2
+1.8
+201.4
+(35.4)
+0.1
+0.65
+Pharmalucence, Inc.
+USD
+66.26
+5,720.0
+(280.6)
+6,351.4
+912.0
+1,641.1
+(317.7)
+(115.1)
+58
+0.0
+PI Real Estate Ventures, LLC
+66.26
+596.5
+79.0
+1,882.3
+1,206.8
+206.2
+124.0
+45.0
+59
+Sun Pharma East Africa Limited
+KS
+USD
+100.00%
+(154.3)
+0.8
+224.3
+56,862.2
+1,118.6
+399.4
+719.2
+68.98%
+920.1
+5,447.2
+2,274.2
+2,274.2
+68.98%
+34.7
+(1.6)
+(1.6)
+68.98%
+324.0
+(1.9)
+(1.9)
+68.98%
+289.7
+443.1
+30.8
+3.5
+52,736.7
+68.98%
+19,332.6
+3,556.4
+100.00%
+100.00%
+100.00%
+0.1
+0.1
+0.1
+100.00%
+20,168.5
+6,820.6
+46,657.4
+8,285.3
+1,580.4
+6,704.9
+27.3
+2,000.0
+0.1
+100.00%
+3,572.2
+25,719.6
+19,247.4
+2,646.2
+16,601.2
+68.98%
+1,728.6
+29,566.5
+22,889.0
+100.00%
+62
+68.98%
+163.4
+(246.4)
+100.00%
+(196.2)
+100.00%
+10.7
+3,049.1
+2.3
+0.7
+1.6
+100.00%
+1.2
+1.6
+0.5
+1.1
+100.00%
+0.0
+10.7
+2.3
+0.7
+1.6
+100.00%
+0.0
+(138.8)
+(153.5)
+100.00%
+(1,356.7)
+100.00%
+1,306.4
+(23.2)
+(23.2)
+68.98%
+0.2
+6.7
+0.7
+6.0
+68.98%
+0.1
+68.98%
+68.98%
+959.0
+521.3
+9,368.8
+783.7
+6,846.4
+2,276.0
+10.8
+(78.3)
+0.0
+3,060.0
+11.3
+2,081.7
+(2,714.0)
+(246.4)
+(196.2)
+11.3
+100.00%
+775.3
+(1,357.3)
+376.9
+130.0
+Gufic Pharma Limited
+1.00
+92.2
+1,789.3
+1,697.1
+2,856.9
+161.3
+45.6
+70.00%
+75
+Ranbaxy South Africa Proprietary Limited
+ZAR
+4.47
+1.6
+485.8
+2,002.6
+1,515.2
+1,061.5
+84.6
+100.00%
+76
+Ranbaxy Egypt Company (L.L.C.)
+EGP
+7.46
+36.2
+0.0
+(16.5)
+4.47
+Sonke Pharmaceuticals Proprietary Limited
+1,293.7
+(208.8)
+(4.5)
+100.00%
+72
+Ranbaxy Belgium N.V.,
+EURO
+75.28
+42.3
+2.8
+45.1
+73
+Ranbaxy Pharmaceutical Proprietary Limited
+ZAR
+4.47
+0.0
+(1,127.7)
+2,936.4
+4,064.1
+1,522.6
+(1,245.3)
+100.00%
+100.00%
+74
+ZAR
+641.8
+622.1
+325.8
+NGN
+0.33
+13.3
+1,102.0
+81
+Ranbaxy (Thailand) Company Limited
+THB
+1.88
+31.1
+30.4
+2,748.5
+208.4
+2,704.8
+160.9
+1,443.8
+3,190.4
+332.7
+9.8
+100.00%
+51.8
+543.0
+22.2
+5.7
+100.00%
+1,589.5
+1,154.5
+Ranbaxy Nigeria Limited
+80
+81.0
+75.6
+(128.5)
+13.9
+100.00%
+77
+Rexcel Egypt Company (L.L.C.)
+EGP
+7.46
+1.8
+(8.4)
+80.3
+86.9
+799.7
+22.4
+100.00%
+78
+Ranbaxy (U.K.) Limited
+GBP
+95.32
+2,073.2
+(768.5)
+79
+Ranbaxy (Poland) Sp. Z o.o.
+PLN
+17.63
+(1.6)
+862.7
+59.2
+3.8
+EURO
+75.28
+1.9
+455.4
+453.5
+202.5
+100.00%
+65
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+UAH
+2.52
+100.7
+(0.7)
+295.5
+195.5
+537.1
+(1.1)
+3.0
+100.00%
+66
+Sun Pharmaceuticals Morocco LLC (Formerly known as
+MAD
+6.85
+Ranbaxy GmbH
+64
+100.00%
+44.0
+0.5
+3.7
+4.2
+0.0
+2.9
+0.3
+63
+Basics GmbH
+EURO
+75.28
+367.0
+83.8
+245.0
+3,269.0
+2,084.6
+86.4
+3834
+0.1
+(0.9)
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+0.1
+100.00%
+3,881.0
+INR
+(229.6)
+915.4
+EURO
+75.28
+1,878.1
+(3,501.9)
+788.5
+2,412.3
+1,738.4
+(131.0)
+70
+Office Pharmaceutique Industriel Et Hospitalier
+EURO
+75.28
+100.1
+(29.6)
+230.4
+159.9
+351.6
+3.6
+100.00%
+100.00%
+71
+EURO
+75.28
+Ranbaxy Pharmacie Generiques
+69
+100.00%
+(0.9)
+740.4
+29.6
+3.7
+100.00%
+Ranbaxy Morocco LLC)
+67
+Ranbaxy-PRP (Peru) S.A.C.
+PEN
+19.62
+85.2
+(155.9)
+769.6
+55.7
+46.7
+11.7
+100.00%
+68
+Ranbaxy Holdings (U.K.) Ltd.,
+GBP
+95.32
+2,912.7
+132.9
+3,054.2
+8.6
+126.4
+As % of
+(14.2)
+(0.2)
+35
+Taro Pharmaceuticals U.S.A., Inc.
+36
+Taro Pharmaceuticals North America, Inc.
+37
+Taro Pharmaceuticals Europe B.V.
+38
+Taro Pharmaceuticals Inc.
+Taro Pharmaceuticals Ireland Limited
+65.3
+0.03
+65.0
+0.02
+Ranbaxy (Thailand) Company Limited
+63
+2,782.2
+0.00
+34
+Taro Pharmaceutical Industries Ltd.
+33
+Sun Laboratories FZE
+25
+Sun Global Development FZE
+26
+Sun Pharma Japan Ltd.
+27
+Sun Pharma Philippines, Inc.
+28
+Sun Pharma Healthcare FZE
+29
+Sun Pharmaceuticals Korea Ltd.
+30
+Caraco Pharmaceuticals Private Limited
+31
+Sun Pharma Laboratories Limited
+32
+Morley & Company, Inc.
+6.13
+24
+7,307.3
+27,955.8
+As % of
+consolidated
+Amount
+(in Million)
+consolidated
+(* in Million)
+consolidated
+As % of
+Amount
+Amount
+(in Million)
+As % of
+Share in profit/(loss)
+2015-16
+(0.2)
+2014-15
+2015-16
+Net Assets, i.e., total assets minus total liabilities
+Name of the Entity
+2014-15
+As % of
+consolidated
+Amount
+(in Million)
+net assets
+10.91
+37,035.5
+11.79
+Ranbaxy Inc. (Consolidated with its Subsidiaries)
+62
+9
+8
+7
+6
+5
+4
+3
+2
+1
+profit/(loss)
+profit/(loss)
+net assets
+15.49
+45,393.8
+Sun Global Canada Pty Ltd.
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+Shareholding
+Taxation
+FORM AOC - I
+PURSUANT TO FIRST PROVISO TO SUB-SECTION (3) OF SECTION 129 OF COMPANIES ACT, 2013 READ WITH THE RULES
+5 OF COMPANIES (ACCOUNTS) RULES 2014
+STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES / ASSOCIATE
+COMPANIES/JOINT VENTURES
+PART "A" : SUBSIDIARIES
+Sr
+% of
+Name of the Subsidiary Company
+Reporting
+Rate
+Capital Reserve
+Curency
+Total
+Total
+Assets Liabilities
+Investments
+Other than
+investment in
+subsidiary
+Green Eco Development Centre Limited
+No
+Profit/ Proposed
+(Loss) after
+Dividend
+Provision
+for Taxation
+Profit/
+(Loss) before
+Taxation
+Receivables
+Payables
+Loans given (including interest thereon)
+-203
+CORPORATE OVERVIEW
+02-05
+06 - 84
+STATUTORY REPORTS
+85 - 206
+FINANCIAL STATEMENTS -
+204
+SUN
+PHARMA
+ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+*In Million
+Turnover
+2
+23
+Sun Pharmaceutical (Bangladesh) Limited
+Sun Pharmaceutical Industries, Inc.
+Sun Pharmaceutical Industries (Australia) Pty Ltd
+15
+Aditya Acquisition Company Ltd.
+16
+Sun Pharmaceutical Industries (Europe) B.V.
+17
+Sun Pharmaceuticals Italia S.R.L.
+14
+18
+19
+Sun Pharmaceuticals Germany GmbH
+20
+Sun Pharmaceuticals France
+21
+Sun Pharma Global FZE
+22
+Sun Pharmaceuticals Spain, S.L.U.
+Sun Pharmaceuticals UK Limited
+13
+Alkaloida Chemical Company Zrt.
+4
+Sun Farmaceutica do Brasil Ltda.
+5
+Sun Pharma De Mexico S.A. DE C.V.
+6
+SPIL De Mexico S.A. DE C.V.
+7
+Sun Pharmaceutical Peru S.A.C.
+8
+000 Sun Pharmaceutical Industries Ltd.
+9
+Sun Pharma De Venezuela, C.A.
+10
+Chattem Chemicals, Inc
+11
+The Taro Development Corporation
+12
+3
+Nil) in respect of excess remuneration paid for financial year 2013-14.
+Nil) in respect of excess remuneration paid for financial year 2013-14.
+100.00
+17.6
+S.C Terapia S.A.
+53
+Farmaceuticos Unipessoal Lda
+(0.6)
+(0.00)
+(1.6)
+(0.00)
+2.93
+(0.3)
+Ranbaxy Portugal - Com E Desenvolv DeProd
+52
+11.3
+0.02
+16.0
+0.03
+131.3
+(0.00)
+9,212.4
+2.54
+6,499.5
+0.18
+Ranbaxy South Africa Proprietary Limited
+55
+(82.8)
+(0.18)
+205.9
+0.44
+383.7
+0.15
+703.8
+0.22
+AO Ranbaxy (Formerly known as Zao Ranbaxy)
+54
+1,450.4
+3.20
+1,947.3
+4.13
+0.05
+553.5
+156.6
+Ranbaxy (Poland) S.p. Zo.o.
+223.0
+0.49
+(345.8)
+(0.73)
+1,251.2
+0.49
+963.3
+49
+0.31
+48
+1.7
+0.00
+1.9
+0.00
+Ranbaxy GmbH
+47
+Ranbaxy Ireland Limited
+Ranbaxy Italia S.P.A.
+0.02
+58.7
+51
+(28.0)
+(0.06)
+(22.7)
+(0.05)
+(50.2)
+(0.02)
+(71.4)
+(0.02)
+Ranbaxy-PRP (Peru) S.A.C.
+50
+(18.2)
+(0.04)
+(345.5)
+(0.73)
+136.9
+0.05
+0.05
+27,395.2
+0.17
+0.39
+0.06
+Ranbaxy Europe Limited
+61
+0.1
+0.00
+(0.9)
+(0.00)
+174.6
+2,839.8
+2,925.9
+0.93
+Ranbaxy Holdings (U.K.) Limited
+60
+315.8
+0.70
+343.6
+1.11
+0.06
+154.7
+0.03
+0.04
+60.35
+47,159.1
+3,121.6
+3.3
+(143.2)
+(0.32)
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+NOTES
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+ANNUAL REPORT 2015-16
+PHARMA
+SUN
+200
+- 199
+18.8
+0.04
+15.7
+0.73
+436.6
+843.7
+1,201.1
+Be-Tabs Investments Proprietary Limited
+57
+(283.4)
+(0.62)
+(1,325.8)
+(2.81)
+130.5
+0.01
+0.05
+(0.36)
+Ranbaxy Pharmaceuticals Proprietary Limited
+56
+(Consolidated with its Subsidiaries)
+(100.5)
+(0.22)
+183.3
+(1,131.3)
+15.9
+0.01
+20.3
+0.38
+Ranbaxy (U.K.) Limited
+59
+209.7
+0.46
+183.6
+0.39
+(25.3)
+(0.01)
+162.8
+0.05
+Laboratorios Ranbaxy, S.L.U.
+58
+(0.1)
+(0.00)
+(2.0)
+(0.00)
+0.33
+* Net of refund of 1.1 Million (Previous Year -
+** Net of refund of 1.0 Million (Previous Year -
+[net of provision for doubtful loans and advances and
+interest thereon *663.5 Million (Previous Year * 274.0
+Million)]
+Balances Outstanding as at the end of the year
+PHARMA
+ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+* In Million
+Key Management
+SUN
+Personnel
+Enterprise under
+significant Influence of Key
+Management Personnel or
+their relatives
+Jointly Controlled Entity
+Associates
+31.03.2016 31.03.2015 31.03.2016 31.03.2015
+31.03.2016 31.03.2015
+31.03.2016 31.03.2015
+31.03.2016 31.03.2015
+Relatives of Key
+Management Personnel
+Particulars
+202
+201
+4.
+Jointly Controlled Entity
+5.
+(with Whom there are transactions)
+Associates
+(with Whom there are transactions)
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Mr. Sailesh T. Desai
+Mr. Aalok D. Shanghvi
+Ms. Vidhi D. Shanghvi
+Sun Petrochemicals Pvt Ltd
+Navjivan Rasayan (Gujarat) Pvt Ltd
+Sun Pharma Advanced Research Company Ltd
+S&I Ophthalmic LLC
+Zenotech Laboratories Limited
+Daiichi Sankyo (Thailand) Limited
+FINANCIAL STATEMENTS
+85 - 206
+ANNEXURE "B"
+Managing Director
+Wholetime Director
+Wholetime Director
+Son of Managing Director
+Daughter of Managing Director
+31.03.2016 31.03.2015
+(with whom there are transactions)
+0.3
+37.3
+654.7
+15.5
+15.5
+246.3
+246.3
+531.5
+392.9
+639.2
+392.9
+0.4
+0.4
+0.4
+20.5
+37.2
+37.2
+0.1
+0.4
+531.5
+15.5
+207.8
+0.3
+37.6
+0.3
+Purchases of goods
+Sun Pharma Advanced Research Company Ltd
+Zenotech Laboratories Limited
+Daiichi Sankyo (Thailand) Limited
+Purchase of Fixed Assets
+Sun Pharma Advanced Research Company Ltd
+Sale of goods
+Sun Pharma Advanced Research Company Ltd
+Zenotech Laboratories Limited
+Daiichi Sankyo (Thailand) Limited
+Sale of Fixed Assets
+Sun Petrochemicals Pvt Ltd
+207.8
+207.8
+20.6
+0.1
+3.
+Relatives of Key Management Personnel
+(40,852.5)
+(11.13)
+(28,511.9)
+(23.59)
+28.3
+(11,126.0)
+(0.01)
+(6.2)
+(13.01)
+(20.63)
+Foreign Joint Ventures
+1
+MSD Sun LLC (Consolidated with its subsidiary)
+0.00
+0.7
+2
+Artes Biotechnology GmbH
+(9,362.7)
+Minority Interest in subsidiaries
+0.06
+66.9
+34.7
+64
+Sun Pharmaceuticals Morocco LLC (Formerly
+(0.05)
+(166.0)
+(0.06)
+(143.3)
+(0.02)
+(9.8)
+(0.35)
+(158.1)
+known as Ranbaxy Morocco LLC)
+65
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+0.03
+87.5
+0.03
+(0.01)
+Enterprise under significant influence of key
+Management Personnel or their relatives
+(17.8)
+(408.6)
+6.62
+100.00
+# Include share of (loss) from an associate amounting to 22.1 Million
+Indian
+1 Zenotech Laboratories Limited
+Foreign
+CORPORATE OVERVIEW
+0.01
+02 - 05
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+ACCOUNTING STANDARD (AS-18) " RELATED PARTY DISCLOSURE "
+Names of related parties and description of relationship
+1.
+Key Management Personnel
+2.
+STATUTORY REPORTS
+06 - 84
+440.2
+(661,128.0)
+256,231.9
+0.17
+(258.02)
+100.00
+314,042.2
+0.38
+180.5
+(1.06)
+(483.0)
+(4.0)
+(0.03)
+(13.2)
+(0.01)
+(3.9)
+Associates
+2 Daiichi Sankyo (Thailand) Ltd.
+0.14
+Intercompany Elimination and Consolidation Adjustments
+(210.81)
+444.6
+(662,032.7)
+Total
+100.00
+(0.16)
+(0.00)
+0.1
+207.8
+Receiving of Service
+252.7
+135.3
+140.0
+135.3
+140.0
+95.0
+101.7
+242.4
+95.0
+12.1
+11.0
+12.1
+11.0
+13.0
+6.8
+13.0
+101.7
+252.7
+242.4
+31.03.2015
+Mr. Sudhir V. Valia **
+Mr. Sailesh T. Desai
+Apprenticeship Stipend / Remuneration
+Mr. Aalok D. Shanghvi
+*In Million
+NOTES
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Key Management
+Personnel
+Relatives of Key
+Management Personnel
+Enterprise under
+Jointly Controlled Entity
+Associates
+Total
+31.03.2016 31.03.2015
+31.03.2016 31.03.2015
+significant Influence of Key
+Management Personnel or
+their relatives
+31.03.2016 31.03.2015
+31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016
+6.8
+Director's Remuneration
+Mr. Dilip S. Shanghvi*
+12.1
+12.1
+0.4
+0.6
+.
+242.0
+190.0
+(102.3)
+(116.5)
+189.4
+(2.3)
+(13.5)
+(25.7)
+(118.1)
+(143.4)
+326.8
+326.8
+Ms. Vidhi D. Shanghvi
+(1.2)
+241.6
+.
+.
+6.0
+0.9
+0.8
+0.9
+0.8
+(102.3)
+(116.5)
+(2.3)
+(1.2)
+241.6
+189.4
+0.4
+0.6
+(13.5)
+301.1
+123.9
+373.4
+6.0
+Particulars
+274.0
+274.0
+0.3
+74.5
+74.5
+74.5
+74.5
+31435
+Rendering of Service
+0.3
+Services
+10.6
+3.2
+3.1
+199.5
+Sun Pharma Advanced Research Company Ltd
+185.8
+-
+185.8
+31.4
+31.7
+0.3
+Services
+1,377.3
+Sun Pharma Advanced Research Company Ltd
+1,377.3
+Daiichi Sankyo (Thailand) Limited
+Reimbursement of Expenses
+31.4
+Sun Pharma Advanced Research Company Ltd
+31.4
+Daiichi Sankyo (Thailand) Limited
+Loans given
+Zenotech Laboratories Limited
+1.3
+1,378.6
+1,377.3
+1.3
+1.3
+185.8
+Daiichi Sankyo (Thailand) Limited
+3.2
+3.1
+Sun Pharma Advanced Research Company Ltd
+1.4
+1.4
+Navjivan Rasayan (Gujarat) Pvt Ltd
+0.1
+0.1
+Purchase of Investment in an Associate
+0.0
+Zenotech Laboratories Limited (* 16,380)
+0.0
+Provision for doubtful Loan and Advance (including
+389.5
+274.0
+274.0
+interest in current year)
+Zenotech Laboratories Limited
+389.5
+1.5
+58.5
+1.5
+61.9
+3.1
+S&I Ophthalmic LLC (44,016)
+10.6
+10.6
+Reimbursement of Expenses
+55.2
+55.2
+Sun Pharma Advanced Research Company Ltd
+55.2
+55.2
+Interest Income
+69.9
+61.9
+61.9
+Zenotech Laboratories Limited
+69.9
+61.9
+Rent Income
+0.13
+(69.1)
+(0.15)
+6.8
+890.9
+(688.4)
+(688.4)
+99.99%
+346.8
+318.7
+12,279.1
+(20.0)
+6,526.0
+2,304.1
+(282.5)
+(282.5)
+100.00%
+100.00%
+17.50
+0.0
+(20.0)
+38,674.4
+20,480.9
+(107.1)
+(384.8)
+2,779.4
+1,565.0
+303.6
+1,883.7
+305.3
+131.7
+173.6
+100.00%
+66.26
+0.0
+(0.5)
+1,316.4
+100.00%
+66.26
+5,914.4
+95.32
+0.1
+50.86
+0.1
+2,281.6
+56.5
+13.3
+0.2
+(371.2)
+473.7
+135.3
+(42.9)
+39.7
+(82.6)
+75.28
+100.00%
+1.9
+(206.6)
+859.3
+285.9
+4.1
+4.1
+100.00%
+75.28
+100.00%
+(47.5)
+51.8
+4.1
+9.2
+100.00%
+75.28
+1.4
+(150.2)
+484.2
+534.3
+15.3
+15.3
+100.00%
+75.28
+0.8
+44.7
+350.5
+328.4
+4.3
+242.5
+75.28
+66.26
+(485.7)
+289842439382-ÅÅÅÅÅ939984194243333333389_3
+1.00
+1.0
+0.85
+50.7
+66.26
+14,157.1
+Taro Pharmaceuticals Canada, Ltd.
+(4.8)
+718.5 1,188.2
+(11,539.2) 66,654.5
+100.00%
+2,802.2
+18.43
+102.7 (2,378.6)
+2,981.9
+1,125.5
+34,328.8
+544.4
+256.1
+4.4
+419.0
+64,036.6
+42
+Liability Company
+Taro Hungary Intellectual Property Licensing Limited
+31
+Sun Pharma MEA JLT
+TITA
+3
+4
+5
+6
+7
+8
+(0.00)
+(15.0)
+(0.01)
+39
+Taro International Ltd.
+40
+Taro Pharmaceuticals (UK) Limited
+41
+(4,265.3)
+100.00%
+92.5
+(1,388.1)
+72.50%
+(32.5)
+100.00%
+99.33%
+0.98
+0.0
+(122.8)
+386.2
+842.9
+(32.5)
+(54.9)
+(48.5)
+100.00%
+6.62
+0.3
+(1,152.8)
+1,212.3
+(485.7)
+(6.4)
+127.3
+(125.7)
+0.0
+(2,877.2)
+100.00%
+(1,135.7)
+(1,135.7)
+100.00%
+3.84
+3.9
+718.6
+31.0
+1,082.8
+325.7
+95.8
+229.9
+75.00%
+3.84
+0.2
+19.62
+163.6
+2.8
+(17.8)
+238.7
+Neetnav Real Estate Private Limited
+1.00
+3.0
+12.1
+51
+Realstone Multitrade Private Limited
+1.00
+50
+0.1
+52
+Skisen Labs Private Limited
+1.00
+163.6
+(163.5)
+53
+Softdeal Trading Company Private Limited
+10.6
+10.6
+0.1
+1.00
+2,517.2 11,886.7
+46
+Mutual Pharmaceutical Company Inc.
+66.26
+4,805.1
+6,341.7 11,930.5
+47
+Dungan Mutual Associates, LLC
+66.26
+(81.7)
+48
+URL PharmaPro, LLC
+66.26
+(372.0)
+(215.5)
+(500.0)
+49
+Faststone Mercantile Company Private Limited
+1.00
+0.7
+0.1
+54
+(0.7)
+100.00%
+384.6
+17.5
+(105.2)
+0.2
+(105.4)
+(0.7)
+100.00%
+178.6
+(130.7)
+(130.7)
+0.0
+(0.1)
+(0.1)
+1.3
+555.9
+20.0
+100.00%
+(1,048.4)
+Universal Enterprises Private Limited
+1.00
+4.5
+0.8
+2152998-0-73732352 5828277@gm
+2,638.7
+6,664.0 38,610.9
+28,573.3
+28,573.3
+100.00%
+0.1
+1.2
+(0.2)
+(0.2)
+100.00%
+100.00%
+245.2
+(1,048.4)
+10.0
+66.26
+Dusa Pharmaceuticals, Inc.
+45
+92.9
+(432.5)
+1.44
+12.4
+(321.3)
+66.26
+189.4
+0.59
+(6.9)
+5.8
+(1.3)
+1.00
+0.1
+(0.1)
+1.00
+400.5
+0.06
+(3.5)
+189.4
+66.26
+178.2
+0.9
+0.9
+100.00%
+66.26
+273.3
+115,074.5
+117,986.5
+4.47
+0.0
+(0.1)
+66.26
+0.1
+(1.3)
+66.26
+811.8
+(1,051.3)
+66.26
+0.2
+66.26
+174,34.7
+(721.9)
+66.26
+105.3
+0.0
+51.13
+0.0
+0.0
+43
+Taro Pharmaceutical India Private Limited
+1.00
+0.1
+0.6
+44
+Alkaloida Sweden AB
+8.13
+0.4
+11.3
+0.0
+Sun Pharma Health Care FZE
+95.32
+66.26
+51.13
+15.1
+189,956.2
+(0.1)
+110,522.8
+61.796.6
+210,525.2
+63,540.3
+66.26
+558.2
+(685.2) 52,609.6
+66.26
+232.7
+18,738.9
+75.28
+1.4
+(34.1)
+75.28
+150.6
+(394.5)
+30.3
+0.08
+30
+29
+226,846.2
+Sun Pharma Japan Ltd.
+213,973.5
+(0.01)
+(3.1)
+0.37
+166.5
+38
+Sun Pharma East Africa Limited
+(0.01)
+(42.4)
+(0.00)
+(0.8)
+72.23
+(0.09)
+(0.00)
+(0.9)
+39
+Ranbaxy Australia Pty Ltd.
+(0.28)
+(892.8)
+(0.34)
+(868.2)
+0.07
+33.6
+0.10
+46.4
+40
+(40.8)
+Ranbaxy Belgium N.V.
+Sun Pharma Holdings
+(0.6)
+65.69
+29,821.3
+(Consolidated with its Subsidiaries)
+34
+Aditya Pharma Private Limited
+0.00
+0.0
+(0.00)
+(0.1)
+35
+Alkaloida Sweden AB
+(0.01)
+(45.9)
+37
+(0.02)
+0.02
+11.3
+(0.07)
+(29.7)
+36
+Sun Pharma Switzerland Limited
+0.00
+5.4
+0.00
+5.5
+(0.00)
+(0.5)
+(0.00)
+(50.9)
+35,472.3
+0.01
+37.2
+0.04
+17.6
+44
+Rexcel Egypt LLC
+(0.00)
+(6.6)
+(0.00)
+(5.4)
+(0.00)
+(1.9)
+(0.01)
+(6.6)
+45
+(145.5)
+Office Pharmaceutique Industriel et Hospitalier SARL
+70.5
+0.02
+59.8
+0.01
+3.5
+0.00
+1.0
+46
+Basics GmbH
+0.28
+872.6
+0.33
+843.3
+0.02
+0.00
+(0.31)
+0.06
+0.01
+3.2
+0.00
+0.1
+41
+Ranbaxy Farmaceutica Ltda.
+(0.33)
+(1,036.7)
+(0.25)
+(646.5)
+(0.88)
+(416.8)
+(1.19)
+165.8
+(540.3)
+Ranbaxy Pharmaceuticals Canada Inc.
+0.13
+414.4
+0.12
+319.3
+0.17
+79.4
+(0.74)
+(337.5)
+43
+Ranbaxy Egypt LLC
+0.01
+21.2
+42
+75.22
+83.51
+34.54
+85 - 206
+FINANCIAL STATEMENTS -
+06 - 84
+STATUTORY REPORTS
+02-05
+CORPORATE OVERVIEW
+1.6
+0.00
+Amount
+(* in Million)
+9
+0.4
+35.31
+(0.00)
+110,892.7
+31.95
+NOTES
+81,853.5
+23,951.0
+88,506.2
+24.40
+11,077.3
+(0.1)
+(0.00)
+(0.1)
+(0.00)
+(0.0)
+(0.00)
+(0.0)
+(0.00)
+(1.2)
+50.79
+(0.00)
+FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
+Net Assets, i.e., total assets minus total liabilities
+Sun Global Development FZE
+28
+Sun Pharmaceuticals Korea Ltd.
+27
+Sun Pharma Philippines, Inc.
+26
+Sun Global Canada Pty. Ltd.
+25
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+24
+Sun Pharma Global (FZE)
+23
+Sun Pharmaceuticals France
+Name of the Entity
+22
+profit/(loss)
+As % of
+consolidated
+Amount
+(* in Million)
+As % of
+consolidated
+profit/(loss)
+net assets
+Amount
+Amount
+(* in Million)
+As % of
+2014-15
+Share in profit/(loss)
+2015-16
+2014-15
+2015-16
+1
+(0.9)
+0.9
+(0.2)
+(0.1)
+0.00
+(0.00)
+172.2
+0.07
+0.06
+(93.9)
+(0.21)
+(98.7)
+(0.21)
+(207.1)
+(0.08)
+(339.6)
+(0.02)
+(0.11)
+(0.00)
+(0.7)
+(0.00)
+176.0
+0.07
+185.9
+(0.00)
+0.06
+(0.1)
+(0.00)
+(0.2)
+(0.00)
+4.9
+(0.7)
+(11.2)
+182.5
+(9.7)
+(0.00)
+(0.0)
+(0.10)
+(308.9)
+(0.07)
+(171.1)
+(0.28)
+(131.1)
+(0.00)
+(87.4)
+0.00
+4.5
+128,284.6
+40.85
+Taro Pharmaceutical Industries Ltd. (TARO)
+(0.19)
+(0.05)
+(0.8)
+(0.00)
+(1,028.1)
+(2.18)
+763.0
+0.30
+(239.5)
+(24.3)
+32
+Sun Laboratories FZE
+(0.08)
+33
+Mr. Dilip Shanghvi receiving the Padmshree Award from the Hon'ble President of India
+SUN
+SUN HOUSE, CTS No. 201 B/1,
+Western Express Highway,
+Fax: (+91 22) 4324 4343
+CIN: L24230GJ1993PLC019050
+www.sunpharma.com
+concept, content and design at a [info@aic.in]
+PHARMA
+Goregaon (E), Mumbai 400063, Maharashtra.
+Tel: (+91 22) 4324 4324
+CORPORATE OVERVIEW
+-
+48%
+Revenue
+contribution
+02-05
+API Plant
+STATUTORY REPORTS
+significantly expand its narcotics raw material (NRM)
+market share, enhances the opiates portfolio and depth
+in global opiates market and strengthens its strategic
+position in the global opiates business
+FINANCIAL STATEMENTS
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+➤ In April 2016, Sun Pharma received approval from
+US FDA for its New Drug Application (NDA) related to
+BromSiteTM (bromfenac ophthalmic solution) 0.075%
+for the treatment of postoperative inflammation and
+prevention of ocular pain in patients undergoing cataract
+surgery. BromSite™ is the first non-steroidal anti-
+inflammatory drug (NSAID) approved by the
+US FDA to prevent pain and treat eye inflammation for
+patients undergoing cataract surgery; other NSAIDs
+in this class are currently indicated for the treatment
+of inflammation and reduction of pain. BromSite™
+developed by InSite Vision, is the first bromfenac
+ophthalmic solution formulated in DuraSite™, a
+polymer-based formulation that can be used to improve
+solubility, absorption, bioavailability, and residence time
+as compared to conventional topical therapies. Sun
+Pharma acquired InSite Vision in November 2015 and
+is likely to commercialise BromSiteTM through its newly
+formed, US-based division, Sun Ophthalmics, in the
+second half of 2016. As per IMS MAT January 2016, the
+US NSAID Ophthalmic market grew by 8%, generating
+approximately US$ 400 million in sales and about
+4 million prescriptions, providing an attractive market for
+Sun Pharma to participate
+➤ In May 2016, Sun Pharma announced the successful
+completion of the two Phase-3 trials for the
+investigational IL-23p19 inhibitor antibody, Tildrakizumab,
+in patients with moderate-to-severe plaque psoriasis.
+The trials met their primary endpoints for both evaluated
+doses. The co-primary efficacy endpoints of the placebo
+controlled studies were: the proportion of participants
+with Psoriasis Area Sensitivity Index 75 (PASI 75)
+response at week 12 compared to placebo and the
+proportion of participants with a Physician's Global
+Assessment (PGA) score of clear or minimal with at least
+a 2 grade reduction from baseline at week 12 compared
+to placebo. The overall safety profile of Tildrakizumab
+in both Phase-3 clinical trials was consistent with the
+safety data observed in previously reported studies. The
+second study also included an etanercept comparator
+arm, with a key secondary endpoint comparing
+tildrakizumab and etanercept on PASI 75 and PGA.
+Tildrakizumab 200mg was superior to etanercept on
+both PASI 75 and PGA endpoints at week 12, while the
+100 mg dose showed superiority to etanercept on PASI
+75 only. The preparations for submission of a Biologics
+License Application for this product to the US FDA are
+proceeding
+The detailed findings from the Phase-3 clinical trials
+will be presented at upcoming scientific meetings. Sun
+Pharma had acquired worldwide rights to tildrakizumab
+from Merck, in 2014. Funded by Sun Pharma
+subsidiary, Merck is responsible for the completion
+of Phase-3 trials in patients with mild-to-moderate
+plaque psoriasis and, as appropriate, submission of
+a Biologics License Application to the United States
+Food and Drug Administration (FDA). Merck is also
+responsible for manufacturing finished goods to
+support Sun Pharma's initial product launch. Post-
+approval in the US, Sun Pharma will be responsible for
+all other regulatory activities, including subsequent
+submissions, pharmacovigilance, post approval studies,
+manufacturing and commercialisation of the approved
+product. Sun Pharma will also be responsible for all
+regulatory, pharmacovigilance, post-approval studies,
+manufacturing, and commercialisation of approved
+products for all non-US markets. Merck is eligible to
+receive milestone payments, and royalties on sales of
+tildrakizumab
+Outlook
+Sun Pharma has embarked on various initiatives globally to
+drive future growth and profitability and to enhance long-
+term shareholder value.
+> Investing for the future: The Company continues to
+strengthen and build leadership position in key markets
+and business segments. The Company is focusing on
+enhancing the share of specialty/branded business
+and targeting differentiated product offerings. The
+Company has, over the past year, strengthened its
+ophthalmology and OTC teams in the US as well as
+02 - 05
+21
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+formed a dedicated team for Tildrakizumab, our IL-23
+anti-body which completed Phase-3 clinical trials in May
+2016. The Company simultaneously continues to explore
+opportunities to expand its global footprint
+➤ Ranbaxy integration: The Company is targeting
+synergy benefits of US$ 300 million from the Ranbaxy
+acquisition by FY18. This will be achieved by focusing on
+overall profitability improvement, driven by revenue and
+procurement synergies, manufacturing rationalisation
+and various additional cost-management measures.
+As a part of the integration process, the Company
+expects to incur certain integration charges to generate
+long-term synergies from this merger. Also, as a part of
+the integration process, the Company may decide to
+discontinue certain non-strategic businesses
+> R&D Investments: The Company continues to allocate
+significant resources to R&D to strengthen the specialty
+pipeline, including patented products and complex
+generics. This will mandate increased R&D investments,
+including that for the development of Tildrakizumab
+> CGMP compliance: The Company's key priority is to
+ensure continued 24x7 cGMP compliance by continuously
+enhancing systems, processes and human capabilities to
+meet global regulatory standards at all its manufacturing
+facilities. As a part of this process and in order to address
+the cGMP deviations at its Halol facility, the Company has
+undertaken various remedial measures. These remedial
+measures have resulted in supply constraints for some of
+the products. New approvals for US from this facility have
+also been delayed. The Company expects this situation to
+continue for some more time till the facility is re-certified.
+The remedial action at the Mohali, Dewas, Poanta Sahib
+and Toansa facilities is on track
+> FY17 Guidance: The Company expects its overall
+consolidated revenues to grow at 8-10% for FY17.
+R&D Investments at approximately 9% of sales will
+continue to remain high driven by increased investments
+for developing specialty products as well as higher
+investments for complex generics. This includes
+the investments needed for the development of
+Tildrakizumab. This R&D spending enables development
+of future product pipeline including specialty and
+differentiated products. The Company's initiative in
+building the specialty business in the US will also include
+investments in establishing the front-end distribution
+network in specified therapies, investments in attracting
+specific talent and other investments
+BUSINESS SEGMENT REVIEW
+US BUSINESS
+SUN
+-
+CORPORATE OVERVIEW
+-
+85 - 206
+702A
+UT
+PE
+-701A
+COALITIONE
+QUALTOONER
+Operational Highlights, FY16
+➤ In June, 2015 Sun Pharma and AstraZeneca Pharma
+India Limited (AZPIL) entered into a distribution services
+agreement in India for AstraZeneca's brand 'AxcerⓇ
+a new brand of ticagrelor, a drug used to treat acute
+coronary syndrome (ACS). This provides customers
+access to this latest generation treatment option for ACS.
+Such collaborations are also a part of our stated policy of
+becoming the partner of choice for the promotion and
+distribution of innovative pharmaceutical products in
+the country
+➤ In June 2015, Sun Pharma in-licensed Xelpros
+(Latanoprost BAK-free eye drops) from Sun Pharma
+Advanced Research Company (SPARC) for the US
+market. This was a step further in strengthening the
+Company's specialty pipeline
+➤ In September 2015, Sun Pharma announced the closure
+of the acquisition of GSK's opiates business in Australia
+following the successful completion of this acquisition
+from GSK announced in March 2015. This acquisition
+fortifies Sun Pharma's global position with two opiates
+manufacturing facilities in Port Fairy and Latrobe (both in
+Australia), complementing its current API manufacturing
+footprint globally. Sun Pharma now offers a rich basket
+of opiates product line in addition to a large API portfolio
+and dosage formulations, covering a broad range of
+chronic and acute prescription drugs. The acquisition
+also brings a specialised team to drive business
+growth. The opiates acquisition allows Sun Pharma to
+➤ In September 2015, Sun Pharma entered into an
+agreement to transfer two marketing divisions of its India
+business, related to the erstwhile Ranbaxy's 'Solus' and
+'Solus Care' divisions operating in the central nervous
+system (CNS), to Strides Arcolab Ltd. for a consideration
+of 1,650 million. As per IMS July 2015 MAT report, all the
+products of these two divisions together accounted for
+approximately 920 million in sales. This was done as a
+part of efforts to consolidate the CNS business in India
+➤ In November 2015, Sun Pharma successfully acquired
+InSite Vision in the US. InSite Vision focuses on
+developing new specialty ophthalmic products, including
+three late stage programs. Sun Pharma is in the process
+of establishing a branded ophthalmic business in the
+US. This acquisition of InSite Vision, along with the in-
+licensing of XelprosTM (Latanoprost BAK-free eye drops) in
+June 2015 is a step in this direction. These deals give Sun
+Pharma access to four late stage branded ophthalmic
+products in the US
+➤ In December 2015, Sun Pharma received a Warning
+Letter from the US FDA as a result of the September
+2014 inspection, for its facility located at Halol, Gujarat in
+India. Sun Pharma responded to the US FDA inspection
+observations with a robust remediation process,
+19
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Bottle Packing Line
+PYROM
+which will be completed by June 2016, with significant
+investments in automation and training to enhance
+its quality systems. Sun Pharma has been working
+with external consultants to ensure its remediation
+activities have been completed appropriately. Since
+the inspection in September 2014, Sun Pharma has
+communicated regularly with the US FDA on the progress
+of its remediation and on issues of product supply. It
+has provided periodic updates to the US FDA on its
+commitments. Post the September 2014 inspection, the
+US FDA has withheld future product approvals from the
+Halol facility. This situation may continue until all issues
+are resolved. Sun Pharma is awaiting a re-inspection of
+this facility by the US FDA
+➤ In February 2016, Sun Pharma launched Imatinib
+Mesylate Tablets (therapeutic equivalent to GleevecⓇ
+for indications approved by the FDA) in US market.
+The US FDA had approved this product in December
+2015, which was subsequently commercialised in
+the US market in February 2016. Under the terms of
+a settlement agreement with Novartis, a Sun Pharma
+subsidiary was permitted to launch its version of generic
+GleevecⓇ in the United States on 1st February, 2016.
+Being a First-to-File product, it was granted 180 days of
+marketing exclusivity by FDA from the time of its launch.
+This product was a key contributor to the company's US
+revenues in FY16. Sun Pharma has also launched an
+exclusive patient website www.imatinibrx.com providing
+detailed information about its Imatinib Mesylate product,
+approved indications and side effects, among others
+➤ In March 2016, Sun Pharma and AstraZeneca Pharma
+India Limited (AZPIL) entered into a partnership for
+the distribution of dapagliflozin, an innovative Type
+2 diabetes medicine in India. Dapagliflozin is AZPIL'S
+leading diabetes medicine. Under the agreement, Sun
+Pharma will promote and distribute dapagliflozin under
+the brand name 'Oxra®. AZPIL markets dapagliflozin
+under the brand name ForxigaⓇ and under the terms of
+the agreement, both companies will promote, market
+and distribute dapagliflozin in India under different brand
+names. Sun Pharma will also gain the rights to promote
+and distribute the combination of dapagliflozin with
+metformin under the brand name 'OxrametTM, following
+regulatory approval. This agreement for dapagliflozin
+further strengthens Sun Pharma's partnership with
+AstraZeneca. The addition of this innovative Type 2
+diabetes treatment bolsters its diabetes portfolio; and
+will further enhance the Company's service capabilities
+to offer customers and patients innovative affordable
+medicines
+20
+06 - 84
+➤ In March 2016, Sun Pharma took an important step
+towards establishing its presence in Japan through the
+acquisition of 14 established prescription brands from
+Novartis AG and Novartis Pharma AG for a consideration
+of US$ 293 million. These brands have combined
+annualised revenues of approximately US$ 160 million
+and address medical conditions across several therapeutic
+areas. Under the terms of the agreements, Novartis will
+continue to distribute these brands, for a certain period,
+pending transfer of all marketing authorisations to Sun
+Pharma's subsidiary. The acquired brands will be marketed
+by a reliable and established local marketing partner under
+the Sun Pharma label. The local marketing partner will
+also be responsible for distribution of the brands. Japan
+is a market of strategic interest for Sun Pharma. This
+acquisition marks Sun Pharma's foray into the Japanese
+prescription market; and provides it an opportunity to build
+a larger product portfolio for the future
+22
+Cumulative
+ANDAs filed
+Key brands
+4
+14
+Sun Pharma's five brands are category leaders across
+three markets including India, Romania and Nigeria. The
+Company's dynamic sales force has helped strengthen its
+foothold in every market.
+Sun Pharma is one among the top 10
+consumer healthcare companies in India,
+Romania, Nigeria as well as Myanmar. With
+a strong presence across 20 countries, the
+Company's core markets comprise India,
+Russia, Romania, Nigeria and Myanmar.
+Besides, there are four growth markets,
+including Ukraine, Poland, South Africa and
+Sri Lanka.
+GLOBAL CONSUMER HEALTHCARE
+BUSINESS 7,9,10
+Revenue from division
+* 14,025 MN
+API manufacturing
+units
+14
+Revenue
+contribution
+5%
+ACTIVE PHARMACEUTICAL INGREDIENTS (API)
+BUSINESS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+298
+25
+DMF/CEP
+approvals
+DMF/CEP
+filings
+representatives
+Sales and
+distribution
+2,500+ 7,000+
+Outlets in India
+300,000+
+Core markets
+(India, Russia,
+Romania, Nigeria)
+brand leaders
+Category
+5
+➤ Grow and sustain long-term supply relationships with
+global customers
+> Focus on enhancing the scale and scope of API
+operations
+Road ahead
+➤ The API revenues include part impact of the Opiates
+business acquisition (with effect from September 2016
+onwards) in Australia
+➤ Revenue from APIs and other sources increased by 42%
+to 14,025 million in FY16
+Divisional highlights, FY16
+Sun Pharma prioritises backward integration to ensure
+cost-efficiency and seamless supply. For APIs, the
+Company's customers comprise large generic and innovator
+companies. Its API manufacturing facilities are located in
+India, Australia, Israel, Hungary and the US.
+Sun Pharma started producing APIs in 1995 as a crucial
+endeavor to manufacture complex formulations and
+products. Today, the Company manufactures over 300 APIs
+across 14 locations. Every year, around 20 APIs are added to
+the Company's portfolio.
+422
+* Rest of World - Includes Western Europe, Canada, Australia, New Zealand & other markets
+API Plant
+➤ Improve profitability in developed European markets
+Revenue from division
+* 21,618 MN
+Presence across
+Western Europe,
+Canada, ANZ &
+Other Markets
+Revenue
+contribution
+8%
+REST OF WORLD*
+➤ Maintain and consolidate leadership across therapeutic
+segments
+➤ The Company's future focus will continue to be on
+strengthening customer relationships and brand building
+➤ Emphasis will be on expanding the product portfolio
+through a combination of internal development and
+potential in-licensing opportunities
+Outlook
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+-
+CORPORATE OVERVIEW
+-
+24
+1
+EMERGING MARKETS
+13%
+Revenue
+contribution
+➤ The Company plans to expand its differentiated offering
+into many of these markets
+Road ahead
+➤ Revenue in Rest of World (ROW) markets decreased by
+7% to 21,618 million in FY16
+Divisional highlights, FY16
+The Company's product portfolio comprises injectable and
+hospital products, besides products for the retail market. It
+maintains a distribution-led business model to expand its
+reach and strengthen its position across these areas.
+Sun Pharma has extensive presence across major
+markets in Western Europe, Canada, Australia & New
+Zealand and various other important geographies. The
+Company primarily focuses on the development and
+commercialisation of complex generics and differentiated
+products across these markets.
+➤ The Company is focusing on expanding its product
+basket and presence across new geographies, organically
+and through partnerships
+➤ The Company is enhancing its presence in key emerging
+markets, led by chronic therapies like diabetes, neurology
+and cardiology
+in India
+Outlook
+➤ Revenue for emerging markets declined by 4% to
+35,843 million in FY16
+Divisional highlights, FY16
+Post Ranbaxy's acquisition, Sun Pharma has expanded its
+presence in various emerging markets. Its competitive sales
+force, comprising approximately 2,300 people is leveraging
+the opportunities created due to this acquisition, like cross-
+selling to further improve the Company's position.
+Sun Pharma has an extensive portfolio of branded products
+in the emerging world. The Company's key focus markets
+include Brazil, Mexico, Russia, Romania, South Africa and
+complementary and affiliated markets. The Company has
+local manufacturing assets in 10 countries.
+Revenue from division
+* 35,843 MN
+Presence across
+emerging markets
+100+
+➤ Overall growth has been adversely impacted by
+unfavorable currency movement across many key
+emerging markets
+1
+10,000+
+Pharmacies across
+Cumulative
+ANDAS filed
+572
+R&D Expenses (% of Net Sales)
+R&D Expenses (* billion)
+Filed Approved
+Filed Approved
+Filed Approved
+FY14 FY15 FY16
+FY11 FY12 FY13
+FY10
+1666
+762
+1,013
+Patents
+298
+422
+DMF/CEP
+1,013
+3.3
+Total patent
+applications
+submitted
+413
+Revenue from division
+DMFS approved in
+FY16
+10
+28
+DMFs filed in
+FY16
+20
+ANDAS approved
+in FY16
+14
+DMF/ CEP cumulative
+applications approved
+298
+ANDAS filed in FY16
+22
+DMF/CEP
+cumulative
+applications filed
+422
+Total patents
+granted
+762
+Cumulative
+ANDAS approved
+ШЦЦ
+2.5
+4.4
+7.0
+RESEARCH AND DEVELOPMENT
+➤ Enhance presence in high growth markets
+➤ Maintain leadership in existing markets through focus on
+innovative solutions
+Road ahead
+➤ Volini, India's No. 1 (doctor recommended) pain reliever,
+associated with world tennis champion, Sania Mirza
+and captain of Indian football team, Sunil Chhetri as its
+brand ambassadors. Bringing the two sports icons on
+board further enhances the association of Brand Volini
+with sports and high performance. The two eminent
+personalities also unveiled the brand's latest offering
+Volini Spray with 360-degree technology. Furthering its
+ethos of innovation, Volini now offers a 360-degree spray,
+which enables the can to produce uniform spray pattern
+for optimal coverage. This enables consumers to reach
+out to hard-to-reach areas without external assistance at
+every angle and provides effective relief
+➤ The brand Revital H got associated with Patna Pirates as
+their official health partner for Star Sports Pro Kabbadi
+League Season 3. Bihar is one of the key markets for
+health supplement category in India and a priority market
+for Revital H. The strategic brand association of Revital
+H with Patna Pirates aims to build stronger connect with
+consumers in Bihar. In an effort to amplify its association
+and build significant support for Patna Pirates during the
+Pro Kabbadi League Season 3, Revital H will leverage a
+high visibility print, outdoor and radio campaign as well
+as trade engagements where its retail wholesale partners
+will get a chance to win Patna Pirates merchandise.
+Revital H also organised a 'Meet & Greet' session for its
+trade partners with Patna Pirates during the league
+➤ Twenty-five years following its launch in the Indian
+market, Revital H, India's leading health supplement
+got a new makeover. Sun Pharma's Global Consumer
+Healthcare is repositioning this iconic brand for active
+lifestyle and being 'fit and active'
+➤ Sun Pharma has roped in Indian cricket team captain
+M. S. Dhoni as the new brand ambassador of Revital H.
+M. S. Dhoni is a cricketer known for pushing limits and
+achieving more and remains a perfect combination of
+physical fitness, strategic thinking and decision-making;
+and fits well in the active lifestyle value proposition of
+Revital H brand. The brand has a stronghold in North,
+Central and East of India; and seeks to strengthen its
+market presence in West and South India
+Divisional highlights, FY16
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+-
+CORPORATE OVERVIEW
+-
+26.
+Romania
+Sun Pharma's consistent endeavours to invest in research
+and development (R&D) have helped the Company to
+create a strong product pipeline, ensuring sustainable
+growth. Its key R&D centers support the execution of
+strategies for manufacturing new and innovative products.
+The R&D framework comprises over 2,000 research
+scientists with relevant technical knowhow and expertise
+in developing generics. Besides, they have profound
+knowledge in Active Pharmaceutical Ingredients (APIs),
+Novel Drug Delivery Systems (NDDS) and difficult-to-make
+technology-intensive products.
+The Company's experience and knowledge in
+pharmaceutical research enables rapid improvement of
+a diverse range of immediate and novel delivery systems,
+comprising oral, parenteral, topical and inhalation dosage
+forms. Sun Pharma's formulation expertise lies in the areas
+of taste masking, spray-drying, drug-layering, nano-milling,
+lyophilization and other pharmaceutical unit operations. The
+Company's unique feature is its ability to develop difficult-to-
+make APIs and formulations, using advanced technologies.
+Sun Pharma's R&D capabilities support the development
+of diverse products, including liposomal products, inhalers,
+lyophilized injections, nasal sprays, as well as controlled
+release dosage forms.
+10.4
+413
+19.6
+572
+23.0
+ANDA
+8.3%
+5.6% 5.8% 5.6% 6.3% 6.5% 7.2%
+Retail pharmacies
+across Russia
+Research and Development investment
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+SUN
+27
+During the financial year, the Company invested over 8% of
+its turnover into research and development. Going forward,
+Sun Pharma aims to develop complex products across
+multiple dosage forms through its expanded R&D global
+team.
+During the year, the Company entered into a tripartite
+research and option agreement with Israel-based Weizmann
+Institute of Science and Spain's Health Research Institute
+of Santiago de Compostela (IDIS). It aims to develop
+breakthrough products for the treatment of neurological
+diseases like brain stroke; as well as glioblastoma, a lethal
+brain cancer.
+Over the years, Sun Pharma has developed expertise and
+gathered experience in performing pharmacokinetic and
+bioequivalence studies. This has facilitated the introduction
+of generic or branded generic drugs into the international
+market.
+CHART 12
+572
+1
+1
+11
+12 12
+21
+29
+29
+43
+62
+97
+100
+FY15 FY16
+FY13 FY14
+FY12
+FY11
+19
+22
+27
+22
+26
+22
+Oncology
+Metabolism
+Ranked by
+prescriptions
+NO. 1
+Revenue from division
+* 72,538 MN
+Ranked in Indian
+pharmaceutical
+industry, with 8.8%
+market share
+contribution
+Revenue
+26% NO.1
+INDIAN BRANDED GENERIC BUSINESS
+➤ The Company continues to seek synergic inorganic
+growth opportunities in the US market
+➤ Sun Pharma is focusing on developing a niche portfolio
+of specialty products, complex generics and high entry
+barrier segments
+Road ahead
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+23
+Antibiotic
+22
+25
+413 ANDA Approvals by
+Therapeutic Area
+Entered into the US market by acquiring Caraco
+FY98
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02-05
+-
+CORPORATE OVERVIEW
+US business milestones
+API Plant
+-
+22
+The Company has integrated manufacturing facilities, with
+the capability to manufacture products, both onshore and
+offshore. Its comprehensive portfolio includes 572 ANDAS
+filed and 413 approved across various therapies. As on
+31st March 2016, 159 ANDAs were pending for US
+FDA approval, comprising complex generics, first-to-file
+opportunities and other generics.
+Sun Pharma is the leading generic dermatology company
+and the 3rd largest branded dermatology company in the
+US. Over the years, it has strengthened its position as the
+top supplier of generic dermatology products.
+Sun Pharma is the 5th largest specialty generic
+pharmaceuticals company in the US market, having its
+presence in generics, branded and OTC segments. Its key
+focus areas include dermatology, oncology, controlled
+substances and ophthalmics, among others. It is one of the
+very few companies to have farm-to-market capabilities for
+controlled substances.
+Cumulative
+ANDAS approved
+413
+As on 31st March, 2016
+FY98 - FY10
+Enhanced and strengthened the US business
+FY08 onwards
+Launched many complex generics and few FTFs
+> US revenues for Taro Pharma (a 69% subsidiary) grew by
+10% driven primarily by the full year impact of prior year
+price adjustments and increased market share of select
+products
+➤ Overall US revenues continued to be adversely impacted
+due to price competition, customer consolidation and
+the temporary supply constraints, arising from the cGMP
+remediation efforts at Halol facility
+ANDA Filings
+CHART 10
+> The successful launch of Imatinib Mesylate Tablets
+(therapeutic equivalent to GleevecⓇ for indications
+approved by the US FDA) with 180-day marketing
+exclusivity was one of the key drivers of revenues in US
+➤ Revenue from the US generics declined by 2% to
+135,169 million in FY16
+Divisional highlights, FY16
+Acquired InSite Vision to strengthen the ophthalmic
+portfolio
+with 13 different
+classes of
+doctors
+FY16
+FY15
+Acquired Pharmalucence to get access to sterile
+injectables capability
+FY14
+➤ Acquired URL's generic business
+➤ Acquired DUSA and entered into the branded specialty
+market
+FY13
+Acquired Taro Pharma and forayed into the dermatology
+market
+FY10
+Expanded presence in the US with the addition of Ranbaxy's US
+business
+1
+Sun Pharma enjoys leadership position in chronic segment
+in India. Besides, it has a strong positioning in the acute
+segment as well. The Company specialises in technically
+complex products, offering a comprehensive therapy
+basket.
+Divisional highlights, FY16
+1
+Dermatologists
+Consulting Physicians
+1
+Consulting Physicians
+Diabetologists
+1
+Diabetologists
+1
+Nephrologists
+1
+Nephrologists
+1
+Gastroenterologists
+1
+Gastroenterologists
+1
+Dermatologists
+Ophthalmologists
+Urologists
+Urologists
+1
+HHHHHH223
+Gynaecology
+ENT
+3
+3
+Gynaecology
+ENT
+Gen. Surgeon
+2
+Gen. Surgeon
+Oncologists
+2
+Oncologists
+Chest Physicians
+1
+Chest Physicians
+1
+Sun Pharma owns 30 of the top 300 pharmaceutical brands
+in India. The Company has a field force of over 9,200 people,
+reaching around 600,000 doctors in the country.
+1
+1
+2%
+4%
+Vitamins/Minerals /
+4%
+Gynaecology
+4%
+Share 8.8%
+Nutrients
+5% Dermatology
+Pain/Analgesics
+7%
+17% Neuro-Psychiatry
+12% Gastroenterology
+12% Anti-Infective
+9% Diabetology
+18% Cardiology
+Market
+Therapeutic revenue break-up11
+CHART 11
+➤ Revenue from Indian branded generics increased by 9%
+to 72,538 million in FY16
+6% Others
+Ophthalmologists
+Respiratory
+TABLE 5
+Orthopaedic
+1
+Orthopaedic
+1
+Cardiologists
+1
+Cardiologists
+1
+Opthalmology
+Neurologists
+February 2016
+1
+Doctor Category
+Psychiatrists
+1
+February 2015
+Neurologists
+Psychiatrists
+Doctor Category
+Leadership in key therapeutic areas
+1
+₹ 135,169 MN
+-- Kuala Lumpur (Malaysia)
+Bangladesh Plant
+d) the Directors have prepared the annual accounts on a
+going concern basis; and
+The statement containing the salient features of the
+financial statements of the Company's subsidiaries/joint
+ventures/ associate companies of the Company is given
+in Form AOC - 1, which forms a part of this Annual Report.
+Details pertaining to companies that became subsidiaries/
+SUBSIDIARY/ JOINT VENTURE/ ASSOCIATE
+COMPANY
+The extract of Annual Return as provided under sub-section
+(3) of Section 92 of the Companies Act, 2013 ('the Act') in
+prescribed form MGT-9 is enclosed as "Annexure A" to
+this Report.
+EXTRACT OF ANNUAL RETURN
+The Company has made payment of redemption amount
+and interest pertaining to 5,000 Secured Rated Redeemable
+Non-Convertible Debentures (NCDs) of the face value of
+10,00,000/- each aggregating to ₹500 Crores (listed on
+National Stock Exchange of India Ltd), on 23rd November,
+2015 to the NCD holders of the Company whose names
+were registered on the Register of beneficial owners
+maintained by depositories in respect of the NCDs held in
+electronic form as on Tuesday, 10th November, 2015.
+REDEMPTION OF NON-CONVERTIBLE
+DEBENTURES
+34
+Post the financial year, the Company has also allotted
+25,460 equity shares under Sun Employee Stock Option
+Scheme - 2015 on 2nd May, 2016 and paid up share capital
+of the Company increased from ₹ 2,40,67,28,499/- to
+2,40,67,53,959/-.
+Your Directors are pleased to recommend an equity
+dividend of 1/- (Rupee One only) per equity share of
+face value of 1/- (Rupee One only) each (previous year
+3/- (Rupees Three only) per equity share) for the year
+ended 31st March, 2016, subject to the approval of the
+shareholders at the ensuing Annual General Meeting.
+DIVIDEND
+* Including Share Suspense Account for 2014-15.
+107
+130
+95
+CHANGES IN CAPITAL STRUCTURE
+Pursuant to allotment of shares consequent upon merger
+of erstwhile Ranbaxy Laboratories Limited ("erstwhile
+Ranbaxy") into the Company, the paid-up share capital of
+the Company has increased from ₹ 2,07,11,63,910/- to
+₹ 2,40,61,20,674/- and consequent to allotment of
+shares under the Employee Stock Option Schemes of the
+Company, paid up share capital of the Company increased
+from 2,40,61,20,674/- to 2,40,67,28,499/- during the
+year ended 31st March, 2016.
+-
+CORPORATE OVERVIEW
+02 - 05
+35
+In a separate meeting of Independent Directors, performance
+of Non Independent Directors, performance of the Board as
+a whole and performance of the Chairman was evaluated,
+The Board of Directors have laid down the manner for
+carrying out an annual evaluation of its own performance, its
+various Committees and individual directors pursuant to the
+provisions of the Act and relevant Rules and the Corporate
+Governance requirements as prescribed under Clause 49 of
+the erstwhile Listing Agreement which are in compliance with
+Regulation 17 of Listing Regulations, 2015. The performance
+of the Board was evaluated by the Board after seeking
+inputs from all the Directors on the basis of various criteria
+such as Board Composition, process, dynamics, quality
+of deliberations, strategic discussions, effective reviews,
+committee participation, governance reviews etc. The
+performance of the Committees was evaluated by the Board
+after seeking inputs from the Committee members on the
+basis of criteria such as Committee composition, process,
+dynamics, deliberation, strategic discussions, effective
+reviews etc. The Nomination and Remuneration Committee
+reviewed the performance of the individual Directors on
+the basis of the criteria such as Transparency, Analytical
+Capabilities, Performance, Leadership, Ethics and ability to
+take balanced decisions regarding stakeholders etc.
+EVALUATION OF PERFORMANCE OF THE
+BOARD, ITS COMMITTEES AND INDIVIDUAL
+DIRECTORS
+NUMBER OF MEETINGS OF THE BOARD
+The Board of Directors of the Company met 5 (Five) times
+during the previous financial year on 29th May, 2015, 11th
+August, 2015, 31st October, 2015, 7th November, 2015
+and 12th February, 2016. The particulars of attendance
+of the Directors at the said meetings are detailed in the
+Corporate Governance Report of the Company, which forms
+a part of this Report. The intervening gap between the
+Meetings was within the period prescribed under the Act,
+erstwhile Listing Agreement and Listing Regulations, 2015.
+In compliance with the requirements of the Clause 49 of the
+erstwhile Listing Agreement and as per Regulation 25(7) of
+the Listing Regulations, 2015 the Company has put in place
+a Familiarization Programme for the Independent Directors
+to familiarize them with the Company, their roles, rights,
+responsibilities in the Company, nature of the industry in
+which the Company operates, business model etc. The details
+of the Familiarization Programme is available on the website
+of the Company www.sunpharma.com and may be accessed
+through the web link: http://www.sunpharma.com/policies.
+For the purpose of selection of any Director, the Nomination
+& Remuneration Committee identifies persons of integrity
+who possess relevant expertise, experience and leadership
+qualities required for the position. The Committee also
+ensures that the incumbent fulfills such other criteria with
+regard to age and other qualifications as laid down under
+the Act, Listing Regulations, 2015 or other applicable laws.
+The Board has, on the recommendation of the Nomination
+& Remuneration Committee framed a policy for selection,
+appointment and remuneration of Directors & Senior
+Management. The summary of Remuneration Policy of the
+Company is disclosed in the Corporate Governance Report,
+which forms a part of this Report.
+EMPLOYEES
+REMUNERATION POLICY FOR DIRECTORS,
+KEY MANAGERIAL PERSONNEL AND OTHER
+DECLARATION BY INDEPENDENT DIRECTORS
+The Company has received declaration from all the
+Independent Directors of the Company confirming that
+they meet with the criteria of independence as prescribed
+under sub-section (6) of Section 149 of the Act and as per
+SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 ("Listing Regulations, 2015").
+Mr. Keki Mistry, Mr. S. Mohanchand Dadha, Mr. Ashwin
+Dani, Mr. Hasmukh Shah and Ms. Rekha Sethi, Independent
+Directors of the Company were appointed for term of 2
+(Two) years and their appointment was approved by the
+shareholders at the 22nd Annual General Meeting of the
+Company. Their tenure expires at the conclusion of the
+ensuing 24th Annual General Meeting of the Company. The
+Nomination and Remuneration Committee at their meeting
+held on 30th May, 2016 has recommended a second term for
+all the Independent Directors. The Board of Directors have
+also recommended appointment for a second term of 2 (Two)
+years for Mr. Keki Mistry, Mr. S. Mohanchand Dadha, Mr.
+Ashwin Dani and Mr. Hasmukh Shah upto the conclusion of
+26th Annual General Meeting of the Company, and a second
+term of 5 (Five) years for Ms. Rekha Sethi upto the conclusion
+of 29th Annual General Meeting, subject to the approval of
+members at the ensuing Annual General Meeting.
+DIRECTORS & KEY MANAGERIAL PERSONNEL
+Mr. Dilip Shanghvi, Managing Director of the Company
+retires by rotation and being eligible offers himself for re-
+appointment at the ensuing Annual General Meeting.
+joint ventures/associates and those that ceased to be the
+subsidiaries/joint ventures/associates of the Company
+during the year are provided in Note 30 of the notes to the
+Consolidated Financial Statements.
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+89
+SUN
+Book value per equity share ₹ 1/- each*
+3.0
+82,400.2
+(14,741.3)
+Year ended
+31st March, 2015
+(in million except dividend per share and book value)
+7,219.5
+2,406.8
+(10,733.6)
+Consolidated
+80,462.8
+(Loss) Profit after tax
+Total Revenue
+31st March, 2016
+Year ended
+Standalone
+Particulars
+Dividend on Equity Shares
+Year ended
+31st March, 2016
+288,866.8
+47,159.1
+2,406.8
+Year ended
+31st March, 2015
+1.0
+3.0
+1.0
+Amount of dividend per equity share of
+1.9
+1,230.8
+Transfer to various Reserves
+1,469.7
+490.0
+1,469.7
+74.7
+Corporate Dividend tax
+7,219.5
+45,393.8
+279,396.7
+* 1/- each
+FINANCIAL RESULTS
+PHARMA
+taking into account the views of the Executive Directors and
+Non-executive Directors. The same was discussed in the
+Board Meeting that followed the meeting of Independent
+Directors at which the performance of the Board, its
+Committee and individual Directors was also discussed.
+The information on conservation of energy, technology
+absorption and foreign exchange earnings and outgo as
+stipulated under Section 134(3)(m) of the Act read with Rule
+8 of The Companies (Accounts) Rules, 2014, is annexed
+herewith as "Annexure E".
+CONSERVATION OF ENERGY TECHNOLOGY
+ABSORPTION AND FOREIGN EXCHANGE
+EARNINGS AND OUTGO
+CORPORATE GOVERNANCE REPORT
+Report on Corporate Governance and Certificate of the
+Auditors of the Company regarding compliance of the
+conditions of Corporate Governance as stipulated in Part
+C of Schedule V of the Listing Regulations, 2015 with the
+Stock Exchanges, are enclosed as a separate section and
+forms a part of this Report.
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+EMPLOYEES' STOCK OPTION SCHEMES
+SUN
+MANAGEMENT DISCUSSION AND ANALYSIS
+The Management Discussion and Analysis on the
+operations of the Company as prescribed under Part B
+of Schedule V read with regulation 34 (3) of the Listing
+Regulations, 2015 is provided in a separate section and
+forms a part of this Report.
+The Company has not accepted any deposit from the Public
+during the year under review, under the provisions of the
+Act, and the rules framed thereunder.
+PUBLIC DEPOSITS
+In compliance with the requirements of Section 135
+of the Act, read with the Companies (Corporate Social
+Responsibility Policy) Rules, 2014, the Board of Directors
+have constituted a Corporate Social Responsibility (CSR)
+Committee. The details of membership of the Committee &
+the meetings held are detailed in the Corporate Governance
+Report, forming part of this Report. The contents of the
+CSR Policy of the Company as approved by the Board on
+the recommendation of the CSR Committee is available on
+the website of the Company and can be accessed through
+the web link: http://www.sunpharma.com/policies. The
+average net profits of the Company for last three financial
+years is negative, therefore the Company was not required to
+spend on CSR activities during the previous year. However,
+the Company has voluntarily spent on CSR activities and
+the Annual Report on CSR activities containing details of
+voluntary expenditure incurred by the Company including
+that of erstwhile Ranbaxy and brief details on the CSR
+activities are given in "Annexure D".
+CORPORATE SOCIAL RESPONSIBILITY
+The Company has in place well defined and adequate
+internal financial control framework. During the year, such
+controls were tested and no material weaknesses in their
+design or operation were observed.
+― 37
+The Company has two Employees' Stock Option Schemes,
+one through Trust Route and the other by Direct Route, both
+inherited from erstwhile Ranbaxy. The scheme through
+Direct Route has been named as Sun Pharma Employee
+Stock Option Scheme - 2015, and the one through Trust
+Route as Sun Pharma Employee Stock Option Plan - 2015.
+Both the schemes were adopted by the Company with
+certain amendments consequent upon merger of erstwhile
+Ranbaxy into the Company.
+Disclosures with respect to the Employees' Stock Option
+Schemes are enclosed in "Annexure F".
+DIRECTORS' RESPONSIBILITY STATEMENT
+Pursuant to the requirements under Section 134(5) read
+with Section 134(3)(c) of the Act with respect to Directors'
+Responsibility Statement, it is hereby confirmed that:
+38 -
+ICRA Ltd. has reaffirmed the highest credit rating of
+'ICRA A1+'/'ICRA AAA (Stable)' for the commercial paper
+programs and bank facilities of the Company. Further,
+CRISIL Ltd. has also reaffirmed the highest credit rating of
+'CRISIL A1+'/'CRISIL AAA (Stable)' for the bank facilities of
+the Company.
+CREDIT RATING
+In accordance with the requirements of the Act and Listing
+Regulations 2015, the Consolidated Accounts of the
+Company and its subsidiaries, form a part of this Annual
+Report.
+CONSOLIDATED ACCOUNTS
+the Directors have devised proper systems to ensure
+compliance with the provisions of all applicable laws
+and that such systems were adequate and operating
+effectively.
+the Directors have laid down internal financial controls
+to be followed by the Company and that such internal
+financial controls are adequate and were operating
+effectively.
+WHISTLE BLOWER POLICY/VIGIL MECHANISM
+To create enduring value for all stakeholders and ensure the
+highest level of honesty, integrity and ethical behaviour in all
+its operations, the Company has a 'Whistle Blower Policy' for
+Sun Pharmaceutical Industries Limited (SPIL) and its Indian
+subsidiaries and a 'Global Whistle Blower Policy' for its
+Global subsidiaries, in addition to the existing Global Code
+of Conduct that governs the actions of its employees. In the
+Corporate Governance Report forming part of this report
+further details are provided on the vigil mechanism of the
+Company.
+There are no significant and material orders passed by the
+regulators or courts or tribunals which impact the going
+concern status and Company's operations in future.
+f)
+SIGNIFICANT AND MATERIAL ORDERS
+PASSED BY THE REGULATORS OR COURTS OR
+TRIBUNALS
+e)
+the Directors have taken proper and sufficient care
+for the maintenance of adequate accounting records
+in accordance with the provisions of this Act for
+safeguarding the assets of the Company and for
+preventing and detecting fraud and other irregularities;
+b) the Directors have selected such accounting policies
+and applied them consistently and made judgments
+and estimates that are reasonable and prudent so as
+to give a true and fair view of the state of affairs of the
+Company as at 31st March, 2016 and of loss of the
+Company for the year ended on that date;
+a) in the preparation of the annual accounts for the
+financial year ended 31st March, 2016, the applicable
+accounting standards have been followed along with
+proper explanation relating to material departures;
+INTERNAL FINANCIAL CONTROLS
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+The Company has developed & implemented an integrated
+Enterprise Risk Management Framework through which
+it identifies monitors, mitigates & reports key risks that
+impacts its ability to meet the strategic objectives. The
+Board of Directors have constituted a Risk Management
+Committee which is entrusted with the responsibility of
+overseeing various strategic, operational and financial
+risks that the organization faces, along with the adequacy
+of mitigation plans to address such risks. There is an
+overarching Risk Management Policy in place that was
+reviewed and approved by the Board. The details of Risk
+Management Committee are mentioned in the Corporate
+Governance Report, which forms a part of this Report.
+The details pertaining to composition of Audit Committee
+are included in the Corporate Governance Report, which
+forms a part of this Report.
+a)
+There have been observations in the Secretarial Audit
+Report as follows:
+Secretarial Audit Report
+Pursuant to the provisions of Section 204 of the Companies
+Act, 2013 and the Companies (Appointment and
+Remuneration of Managerial Personnel) Rules, 2014, the
+Company has appointed Messrs C. J. Goswami & Associates,
+Practicing Company Secretaries, Mumbai to undertake the
+Secretarial Audit of the Company. The Secretarial Audit
+Report is annexed herewith as "Annexure C".
+Secretarial Auditors
+The Auditors' Report for the financial year ended
+31st March, 2016 has been issued with an unmodified
+opinion.
+There has been a delay of 3 working days in filing of
+disclosure under Regulation 30 of the SEBI (Substantial
+Acquisition of Shares and Takeovers) Regulations,
+2011 for disclosing the aggregate shareholding and
+voting rights in Zenotech Laboratories Limited (Target
+Company) as of 31st March, 2015.
+The Company's Auditors, Messrs. Deloitte Haskins & Sells
+LLP, Chartered Accountants, (Firm's Regn No. 117366W/W-
+100018), were appointed as the Statutory Auditors of the
+Company for a period of three years at the 22nd Annual
+General Meeting of the Company, upto the conclusion of
+the 25th Annual General Meeting of the Company, subject
+to ratification by members at every Annual General Meeting
+of the Company. They have confirmed their eligibility under
+Section 141 of the Act and the Rules framed thereunder
+for reappointment as Auditors of the Company. As required
+under Regulation 33 of the Listing Regulations, 2015
+the auditors have also confirmed that they hold a valid
+certificate issued by the Peer Review Board of the Institute
+of Chartered Accountants of India.
+AUDITORS
+adopted a policy on prevention, prohibition and redressal of
+sexual harassment at workplace in line with the provisions
+of the Sexual Harassment of Women at Workplace
+(Prevention, Prohibition and Redressal) Act, 2013 and the
+Rules thereunder for prevention and redressal of complaints
+of sexual harassment at workplace. During the year ended
+31st March, 2016, no complaints pertaining to sexual
+harassment was received by the Company.
+Your Company strongly believes in providing a safe and
+harassment free workplace for each and every individual
+working for the Company through various interventions and
+practices. It is the continuous endeavor of the Management
+of the Company to create and provide an environment
+to all its employees that is free from discrimination and
+harassment including sexual harassment. The Company has
+DISCLOSURE UNDER THE SEXUAL
+HARASSMENT OF WOMEN AT WORKPLACE
+(PREVENTION, PROHIBITION AND REDRESSAL)
+ACT, 2013
+Your Company considers its employees as most valuable
+resource and ensures strategic alignment of Human Resource
+practices to business priorities and objectives. Globally the
+Company (including subsidiary and associate companies)
+has a dedicated human capital of over 30,000 employees at
+various locations across our Corporate Office, R & D Centers
+& more than 45 Manufacturing locations, dedicated Sales
+Professionals across various geographies. Our constant
+endeavor is to invest in people and people processes to
+improve human capital for the organisation and service
+delivery to our customers. Attracting, developing and retaining
+the right talent will continue to be a key strategic imperative
+and the organisation continues its undivided attention
+towards that. Your Company strives to provide a conducive
+and competitive work environment to help the employees
+excel and create new benchmarks of productivity, efficiency
+and customer delight. Your Directors would also like to take
+this opportunity to express their appreciation for the hard
+work and commitment of the employees of the Company and
+look forward to their continued contribution. Information
+as per Section 197 (12) of the Act, read with Rule 5(1) of the
+Companies (Appointment and Remuneration of Managerial
+Personnel) Rules, 2014 is provided in "Annexure - B" to this
+report. Further, the information pertaining to 5(2) & 5(3) of the
+Companies (Appointment and Remuneration of Managerial
+Personnel) Rules, 2014, pertaining to the names and other
+particulars of employees is available for inspection at the
+Registered office of the Company and pursuant to the proviso
+to Section 136 (1) of the Act, the report and the accounts are
+being sent to the members excluding this. Any shareholder
+interested in obtaining a copy of the same may write to the
+Company Secretary/Compliance Officer at Corporate office or
+Registered office address of the Company.
+HUMAN RESOURCES
+Statutory Auditors
+b) During the financial year 2015-16, the Company has
+published financial results in the English language
+newspaper but not published in the regional language
+36-
+CORPORATE OVERVIEW
+AUDIT COMMITTEE COMPOSITION
+The Company has entered into material Related Party
+Transactions, i.e. transactions exceeding ten percent of
+the annual consolidated turnover as per the last audited
+financial statements, during the year with Sun Pharma
+Laboratories Limited, a wholly owned subsidiary. The
+transactions entered into between a holding company and
+its wholly owned subsidiary of the Company do not require
+approval of the shareholders. The disclosure of Related
+Party Transactions as required under Section 134(3)(h) of
+the Act, in Form AOC 2 is not applicable.
+http://www.sunpharma.com/policies. All contracts/
+arrangements entered by the Company during the previous
+financial year with the related parties were in the ordinary
+course of business and on arm's length basis.
+The policy on Related Party Transactions as approved by the
+Board is available on the website of the Company and can
+be accessed through the web link
+RELATED PARTY TRANSACTIONS
+The particulars of loans, guarantees and investments have
+been disclosed in the financial statements.
+LOANS, GUARANTEES & INVESTMENTS
+The Company has appointed Messrs. Kailash Sankhlecha &
+Associates, Cost Accountants, Vadodara as Cost Auditors of
+our Company for conducting Cost Audit in respect of Bulk
+Drugs & Formulations of your Company for the year 2016-17.
+Cost Auditors
+b) The results were earlier published in daily newspaper
+which had a English and Gujarati Edition. However,
+on account of change in newspaper for publication
+from one daily to another daily (which does not have
+a Gujarati Edition), the publication of results in the
+regional language newspaper was missed due to
+inadvertence.
+The Board's response to the observations is as follows:
+a) There was an inadvertent delay.
+newspaper, where the registered office of the Company
+is situated as per the requirement of Clause 41 of the
+Listing Agreement / Regulation 47 of the SEBI (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015.
+FINANCIAL STATEMENTS
+85-206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+RISK MANAGEMENT
+Your Directors take pleasure in presenting the Twenty-Fourth Annual Report and Audited Financial Statements for the year
+ended 31st March, 2016.
+FAMILIARIZATION PROGRAMME FOR THE
+INDEPENDENT DIRECTORS
+PHARMA
+Latrobe,
+Karkhadi
+-- Paonta
+- Jammu
+(2 units)
+Port Fairy,
+Australia
+R & D Center
+Australia
+CORPORATE OVERVIEW
+02-05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+Best-in-class manufacturing assets
+Sun Pharma has always emphasised on ensuring best-in-
+class quality in design, equipment and operations across
+its manufacturing facilities globally. These facilities ensure
+that the Company provides best quality products to patients
+across 150 nations. With 49 manufacturing facilities
+spanning across six continents, the Company is focusing
+on consolidating the network. Its manufacturing units are
+situated in India, the US, Brazil, Canada, Hungary, Israel,
+Bangladesh, Mexico, Romania, Ireland, Morocco, Nigeria,
+South Africa, Malaysia and Australia.
+These units are responsible for seamless production of
+generics, branded generics, specialty products, over-the-
+counter (OTC) products, anti-retroviral (ARVS) and Active
+Pharmaceutical Ingredients (APIs). They also produce
+intermediates in the full range of dosage forms, including
+tablets, capsules, injectables, ointments, creams and liquids.
+The Company also manufactures specialty APIs, including
+controlled substances, steroids, peptides and anti-cancer
+products.
+-
+-- Sikkim Plant (2 units)
+- Dewas
+- Malanpur
+➤ Topicals: Creams and Ointments
+Gels, Lyophilized Units, Dry powder, Eye drops, MDI and
+Aerosols
+➤ Injectables / Sterile: Vials, Ampoules, Pre-filled Syringes,
+➤ Orals: Tablets / Capsules, Semisolids, Liquids and
+Suppository
+Delivery formats
+> One each at Canada, Ireland, South Africa, Malaysia,
+Mexico, Hungary, Israel, Bangladesh, Romania,
+Morocco, Egypt and Nigeria
+> Brazil: 2
+➤ US: 6
+➤ India: 15
+35 finished dosage manufacturing sites
+Our strategic manufacturing locations
+- Maduranthakam
+Goa
+- Dadra
+Ahmednagar
+Sun Pharma's expert team of regulatory affairs specialists
+is well aware of the globally-relevant regulatory policies and
+14 API manufacturing sites
+procedures. Besides, they are experienced in timely filing
+The Company's facilities have been certified by several
+regulatory agencies like US FDA, EMA-Europe, MHRA-UK,
+MCC-South Africa, TGA-Australia, ANVISA-Brazil, WHO-
+Geneva, BfArM-Germany, KFDA-Korea and PMDA-Japan.
+Baddi -1
+Batamandi
+Baddi -2.
+Toansa
+Formulation Plant
+▲ API Plant
+■API and Formulation Plant
+Mohali
+Be-Tabs (South Africa)
+Halol -
+Silvassa
+Ankleshwar.
+Panoli -
+Cashel (Ireland)
+Casablanca (Morocco)
+Tiszavasvari (Hungary)
+Cluj (Romania)
+BOARD'S
+REPORT
+Lagos (Nigeria) -
+Goiânia (Brazil).
+Rio de Janeiro (Brazil).
+During the year, Sun Pharma received a warning letter from
+the US FDA for its Halol facility in Gujarat. It was a result of
+the September 2014 inspection. Sun Pharma responded
+to the inspection observations with a robust remediation
+process. The Company is focusing on significant
+investments in automation and training to enhance its
+quality systems. It has also been working with external
+consultants to ensure proper completion of remediation
+activities.
+This year, Sun Pharma completed the acquisition of opiates
+business in Australia. This acquisition strengthened the
+Company's global position with two opiates manufacturing
+facilities in Port Fairy and Latrobe (both in Australia).
+29
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Global manufacturing footprint
+Wilmington M.A.
+Billerica, MA -
+Ontario (Canada).
+New Jersey (US)
+Aurora
+Tennessee
+Iztapalapa (Mexico) -
+Cranbury
+Philadelphia
+Giza, (Egypt)
+Haifa (Israel)-
+of dossiers, while simultaneously handling the regulatory
+queries of both authorities and customers.
+➤ India: 9
+Dahej
+> One each at Israel, US and Hungary
+Nicolas Hall' 2014 and IMS
+7.
+International Diabetes Federation
+6.
+IBEF
+5.
+8. SMSRC Prescription Audit
+4.
+2.
+1.
+www.prnewswire.com
+-
+Deloitte 2015 Global life sciences outlook
+-
+3.
+9.
+Euromonitor
+10.
+> Australia: 2
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+SUN
+85
+68
+34
+Consolidated Financial Statements
+Standalone Financial Statements
+Corporate Governance
+Board's Report
+32 -
+AIOCD AWACS MAT March-2016
+11.
+Cegedim
+IMS Health, Market Prognosis, September 2015
+Deloitte 2016 Global life sciences outlook
+Bibliography
+144
+Statements in this 'Management Discussion and Analysis'
+describing the Company's objectives, projections, estimates,
+expectations, plans or predictions or industry conditions or
+events are 'forward-looking statements' within the meaning
+of applicable securities laws and regulations. Actual results,
+performance or achievements could differ materially from
+The Company takes significant steps to ensure that the
+career aspirations of its employees are met through
+professional growth. Therefore, it organises various
+training and skill-development activities to enrich employee
+knowledge and make them future ready.
+As a leading global pharmaceutical company, Sun Pharma
+focuses on attracting and nurturing talent to prepare a
+robust pipeline of future leadership. As a transnational
+company, Sun has a diverse workforce, which brings a variety
+of skills and knowledge to take the Company on a higher
+growth trajectory. As on 31st March, 2016, the Company's
+multicultural team comprises over 30,000 people across
+50 nationalities.
+INVESTING IN TALENT
+FINANCIAL STATEMENTS
+85 - 206
+SUN
+PHARMA
+O
+The Company also offers unique management programs for its
+people to enhance their management skills, and subsequently,
+add more value to the system. The Company is committed to
+create a healthier future, along with its employees.
+STATUTORY REPORTS
+06 - 84
+-
+CORPORATE OVERVIEW
+Formulation Plant
+➤ The Australia, Hungary and the US (Tennessee)
+facilities undertake controlled substances
+manufacturing
+➤ The Panoli and Ahmednagar (both in India) has US
+FDA and European approvals. These have dedicated
+units for peptides, anti-cancer, steroids and sex
+hormones among others
+those expressed or implied. Important factors that could
+make a difference to the Company's operations include
+global and Indian demand supply conditions, finished
+goods prices, feedstock availability and prices, competitors'
+pricing in the Company's principal markets, changes in
+Government regulations, tax regimes, economic conditions
+within India and the countries within which the Company
+conducts businesses and other factors such as litigation
+and labor unrest or other difficulties. The Company assumes
+no responsibility to publicly update, amend, modify or
+revise any forward-looking statements, on the basis of
+any subsequent development, new information or future
+events or otherwise except as required by applicable law.
+Unless the context otherwise requires, all references in this
+document to 'we', 'us' or 'our' refers to Sun Pharmaceutical
+Industries Limited and consolidated subsidiaries.
+02-05
+STRINGENT QUALITY ADHERENCE
+Being a leading pharma player worldwide, Sun Pharma
+adheres to global regulatory guidelines, driven by best-in-
+class technology and processes. The Company's Quality
+30
+with the accepted standards of globally-recognised regulatory
+agencies like US FDA, EMEA, MHRA and TGA, among others.
+DISCLAIMER
+Management Team ensures that its every product complies
+An independent and empowered Global Internal Audit
+Function at the corporate level carries out risk-focused
+audits across all businesses (both in India and overseas),
+which actively identifies areas, where business process
+controls are ineffective or may need enhancement. These
+reviews include financial, operational, compliance controls
+and risk mitigation plans. The Audit Committee of the Board
+periodically reviews key findings and provides strategic
+guidance. The Company's Operating Management closely
+monitors the internal control environment and ensures that
+the recommendations are effectively implemented.
+Sun Pharma believes that internal control is a necessary
+prerequisite of the principle of Governance and that
+freedom should be exercised within a framework of checks
+and balances. The Company has a well-established internal
+control framework, which is designed to continuously
+assess the adequacy, effectiveness and efficiency of
+financial and operational controls. The management
+is committed to ensure an effective internal control
+environment, commensurate with the size and complexity of
+the business, which provides an assurance on compliance
+with internal policies, applicable laws, regulations and
+protection of resources and assets.
+INTERNAL CONTROL
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+Key API plants
+31
+The Company also has an independent Corporate
+Compliance Department that separately audits every
+site to strengthen controls and procedures. Besides, the
+department consistently evaluates the existing systems and
+processes, and makes subsequent improvements in line
+with regulatory requirements.
+SUN
+Sun Pharma takes prompt actions in case of any deviation
+in maintaining quality control measures. During the year,
+the Company received a warning letter from the US FDA
+for its Halol facility in Gujarat. It quickly responded to the
+inspection observations with a robust remediation process.
+-
+The Company's manufacturing plants have well defined
+procedures and systems in compliance with cGMP
+guidelines. Besides, the facilities are guided by a Corporate
+Quality Unit (CQU) that works along with the regulatory affairs
+department. CQU ensures that the latest updates in cGMP
+are being translated into guidelines, SOPs and protocols.
+T
+0
+0.00
+0
+0
+0
+Foreign Venture
+g)
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+-4.88
+15.09
+363083608
+17943
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+37575160
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+576191847
+24.52
+507926838
+2510160
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+Sub total (B) (1)
+0.00
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+0
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+19961069 2495320
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+1)
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+of Promoter* (A)=(A)
+(1)+(A)(2)
+Total shareholding
+2840
+B
+44
+-8.59
+54.97
+1323022812
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+1316496400
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+2.02
+4218
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+1382146
+0.07
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+0.00
+0.10
+0.05
+1023184
+0
+1023184
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+ii)
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+0.07
+0.15
+3531944
+380453
+3151491
+0.07
+1533481
+131430
+0.05
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+1653586
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+207850
+0
+207850
+Clearing Member
+iii)
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+0.08
+0.03
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+Repat)
+Foreign
+0
+c)
+0
+0.00
+813962
+0
+813962
+0.03
+0.03
+0
+1234635
+excess of 1 lakh
+holding nominal
+64059267
+206057
+63853210
+2.70
+55862424
+189150
+55673274
+Bodies Corporate
+a)
+Non-Institutions
+2)
+year
+during the
+Total % of Total
+Shares
+2.66
+% Change
+Total % of Total
+Shares
+Physical
+Demat
+No. of Shares held at the beginning of the year
+Category of
+Shareholders
+Annexure - A
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+-0.48
+24.05
+578740588
+0.05
+No. of Shares held at the end of the year
+Demat Physical
+-0.04
+i)
+Indian
+shareholders
+-0.67
+0.80
+19189370
+125000
+19064370
+1.47
+30368098
+125000
+30243098
+Individual
+ii)
+1 lakh
+share capital upto
+holding nominal
+shareholders
+1.46
+ii)
+Overseas
+b)
+Individuals
+i)
+Individual
+share capital in
+67563422
+77066666
+3.72
+112958510
+11797649
+124756159
+5.18
+9503244
+0
+43
+0
+N.A
+Egypt
+Rexcel Egypt LLC
+104
+Kingdom
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United
+InSite Vision Ltd.
+103
+of America
+2(87)(ii)
+Subsidiary
+100.00
+N.A
+United States
+InSite Vision INC
+102
+of America
+2(87)(ii)
+67.50
+Subsidiary
+N.A
+United States
+Ranbaxy Signature LLC
+101
+of America
+2(87)(ii)
+Subsidiary
+100.00
+2(87)(ii)
+105
+Category-wise shareholding
+i)
+IV SHARE HOLDING PATTERN (EQUITY SHARE BREAKUP AS PERCENTAGE OF TOTAL EQUITY AS
+ON 31st MARCH, 2016)
+Annexure - A
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+SUN
+3792370
+* directly or indirectly
+of America
+2(6)
+19.99
+Associate
+N.A
+United States
+Medinstill LLC
+107
+Zenotech Laboratories Limited
+India
+L27100AP1989PLC010122
+Associate
+46.84
+2(6)
+100.00
+106
+Thailand
+N.A
+Associate
+26.90
+2(6)
+Limited, Thailand
+Daiichi Sankyo (Thailand)
+Category of
+Subsidiary
+United States
+2(87)(ii)
+70.00
+Subsidiary
+N.A
+South Africa
+Sonke Pharmaceuticals
+95
+Proprietary Ltd
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+South Africa
+Be-Tabs Invesments
+Proprietary Ltd.
+94
+100.00
+Subsidiary
+N.A
+Germany
+Ranbaxy GmbH
+93
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Germany
+Basics GmbH
+92
+Canada Inc
+2(87)(ii)
+96
+Ranbaxy Inc.
+United States
+Ohm Laboratories Inc
+100
+of America
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United States
+Ranbaxy Pharmaceuticals Inc.
+99
+of America
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United States
+Ranbaxy Laboratories Inc
+N.A
+Subsidiary
+100.00
+2(87)(ii)
+of America
+97
+N.A
+Ranbaxy Europe Ltd
+N.A
+Subsidiary
+100.00
+2(87)(ii)
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+98
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+0.06
+1280200
+1316496400
+12000
+1316484400
+Sub total (A) (1)
+0
+1280200
+Any other (Trusts)
+e)
+Institutions/Bank
+0.00
+0.00
+0
+-6.82
+42.09
+C)
+Bodies Corporate
+1013012000
+d)
+Financial
+0
+1280200
+12000
+0
+0
+48.91
+0.00
+1013012000
+0
+12000
+0
+1013024000
+1013024000
+0.18
+1
+0
+N.A
+N.A
+0.00
+41350
+At the beginning of the year
+Allotment on Corporate
+Action for merger on 10th
+April, 2015
+Keki M. Mistry
+7
+0.00
+0
+ΝΑ
+NA
+At the end of the year
+N.A
+N.A
+1920
+0.00
+At the beginning of the year
+Hasmukh S. Shah
+6
+0.00
+16
+ΝΑ
+NA
+At the end of the year
+April, 2015
+Action for merger on 10th
+0.00
+16
+0.00
+16
+0
+NA
+0.00
+0.00
+47
+0.00
+0
+NA
+ΝΑ
+At the end of the year
+N.A
+N.A
+0.00
+0.00
+0
+NA
+ΝΑ
+N.A
+43270
+N.A
+0
+0.00
+43270
+NA
+NA
+MOMO
+At the beginning of the year
+Rekha Sethi
+9
+At the end of the year
+At the beginning of the year
+Ashwin S. Dani
+8
+At the end of the year
+0.00
+ΝΑ
+0.00
+0
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+At the end of the year
+Sudhir V. Valia
+3
+Dilip S. Shanghvi
+2
+Israel Makov
+1
+No. of % of total Shares
+shares of the Company
+Cumulative Shareholding
+during the year
+Shareholding at the
+beginning of the year
+No. of % of total Shares
+shares of the Company
+Name of Director /
+KMP
+Sr.
+no
+v) Shareholding of Directors and Key Managerial Personnel: (held singly or jointly as first holder)
+*There is no change in number of shares held but there is change in percentage of holding due to allotment of shares by Company pursuant to
+merger of erstwhile Ranbaxy Laboratories Limited into the Company and allotment under ESOP schemes, during the year.
+** The trading has taken place on various dates therefore the change has been shown on consolidated basis.
+0
+NA
+(e.g. allotment / transfer/
+bonus/sweat equity etc)
+39779172
+N.A
+N.A
+At the end of the year
+0.94
+22583999
+Various dates during the
+year**
+N.A
+N.A
+0.83
+17195173
+At the beginning of the year
+2.86
+68878684
+1.65
+0.00
+NA
+N.A
+N.A
+Allotment on Corporate
+S. Mohanchand Dadha At the beginning of the year
+5
+0.16*
+3751020
+NA
+ΝΑ
+N.A
+N.A
+0.18*
+3751020
+At the beginning of the year
+At the end of the year
+Sailesh T. Desai
+4
+0.60*
+14384000
+NA
+0
+0.00
+231140480
+11.16*
+N.A
+N.A
+SUN
+NA
+ΝΑ
+0.69*
+231140480
+9.60*
+N.A
+N.A
+NA
+14384000
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+(b) Value of perquisites u/s 17(2) of the
+Income tax Act, 1961
+(a) Salary as per provisions contained in
+section 17(1) of the Income-tax Act, 1961
+Gross salary
+2345
+1
+Sr. No. Particulars of Remuneration
+A) Remuneration to Managing Director, Whole-time Directors and/or Manager for the year ended 31st
+March, 2016 (As per Form 16, on actual payment basis)
+VI) REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
+(2) Deposits are Trade/ Security Deposits Received. The change during the year has been shown on net basis.
+(3) Change in the Working Capital facility viz. CC, OD, WDCL & PCFC facilities, forming part of Secured & Unsecured loans, have been shown on net basis.
+(1) Interest accrued but not due on borrowings.
+58,581.8
+132.3
+55,806.7
+96.8
+(c) Profits in lieu of salary under section 17(3)
+91.8
+Total (i+ii+iii)
+iii) Interest accrued but not due (1)
+ii) Interest due but not paid
+58,485.0
+132.3
+55,714.9
+2,637.8
+i) Principal Amount
+Indebtedness at the end of the financial year
+(9,633.7)
+(8.0)
+(4,612.9)
+(5,012.8)
+Net Change
+5.0
+2,642.7
+Income-tax Act, 1961
+Stock Option
+Sweat Equity
+(3) Net of refund of 1.0 Million (Previous Year - Nil) in respect of excess remuneration paid for financial year 2013-14.
+(4) This includes Leave Travel Allowance of previous years which was claimed in the current year.
+(1) The total Remuneration includes bonus of 2014-15 (previous year) paid in 2015-16 (current year).
+(2) Net of refund of 1.1 Million (Previous Year - Nil) in respect of excess remuneration paid for financial year 2013-14.
+-
+48
+0000
+56260239
+13015975 (4)
+21665593(3)
+21578671(2)
+0
+0
+0
+0
+0
+0
+0
+0
+Commission as a % of profit
+Others, please specify
+Total (A)(¹)
+(Amount in )
+Mr. Dilip S. Shanghvi Mr. Sudhir V. Valia Mr. Sailesh T Desai
+Total
+128.4
+20991558
+12983575 55356056
+587113
+284670
+32400
+904183
+0
+21380923
+N.A
+(37.3)
+Change: Interest accrued but not due (1)
+V) INDEBTEDNESS
+*There is no change in number of shares held but there is change in percentage of holding due to allotment of shares by Company pursuant to
+merger of erstwhile Ranbaxy Laboratories Limited into the Company and allotment under ESOP schemes, during the year.
+0
+NA
+N.A
+0.00
+22700
+ΝΑ
+N.A
+0.00
+NA
+At the end of the year
+0
+At the beginning of the year
+N.A
+Sunil R. Ajmera
+NA
+At the end of the year
+22700
+At the beginning of the year
+Uday Baldota
+10
+No. of % of total Shares
+shares of the Company
+during the year
+Cumulative Shareholding
+Shareholding at the
+beginning of the year
+No. of % of total Shares
+shares of the Company
+Annexure-A
+KMP
+Name of Director /
+Sr.
+no
+11
+0.00
+N.A
+0.00
+(91,861.4)
+(8.0)
+(85,817.3)
+(6,036.1)
+Reduction: Principal Amount (3)
+82,099.3
+81,241.7
+857.6
+Addition: Principal Amount (3)
+Change in Indebtedness during the financial year
+225.1
+68,472.2
+140.3
+54.5
+60,345.0
+7,987.0
+Total (i+ii+iii)
+170.7
+iii) Interest accrued but not due (1)
+Indebtedness of the Company including interest outstanding/accrued but not due for payment
+Secured Loans
+excluding deposits
+Unsecured
+Deposits (2)
+(in Million)
+Total
+Loans
+165.7
+Indebtedness
+i) Principal Amount
+7,816.3
+60,290.5
+140.3
+68,247.1
+ii) Interest due but not paid
+Indebtedness at the beginning of the financial year
+N.A
+At the end of the year
+year**
+SEBI(Share based
+Trust under
+0.01
+0.01
+123381
+0
+123381
+0.00
+0
+0
+0
+Employee Benefit
+GDRs & ADRs
+Custodian for
+employee benefit)
+0.00
+0
+0
+0
+0.00
+0
+0
+0
+Shares held by
+с
+(B)(1)+(B)(2)
+ing Public Group (B)=
+8.59
+45.02
+9.06
+0.00
+Regulations, 2014
+GRAND TOTAL
+2058692926 12470984 2071163910
+231140480
+Dilip S. Shanghvi
+1
+% of Shares % change in
+Pledged/share holding
+Shares
+% of total
+No. of
+Shares
+% of Shares
+Pledged/
+encumbered
+of the
+of the year
+Share holding at the end
+of the year
+% of total
+Shares
+No. of
+Shares
+Shareholding at the beginning
+No. Name
+Shareholder's
+Sr
+100.00
+2391658599
+15069900 2406728499 100.00
+0.00
+(A)+(B)+(C)
+* includes Promoter Group
+20.98
+45
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+46
+Annexure-A
+ii) Shareholding of Promoters as on 31st March, 2016
+SUN
+Company to total shares
+492332559 12509159 504841718
+1068524406 15057900 1083582306
+742208526 12458984 754667510
+0
+46000
+vii) Overseas
+(Corporate)
+Investor
+7.71
+11.32
+272477175
+0
+272477175
+3.61
+74841129
+0
+74841129
+46000
+Foreign Portfolio
+0.27
+0.37
+8902546
+0
+8902546
+1998490
+0
+1998490
+Trusts
+v)
+Relatives
+-0.03
+0.16
+3794306
+vi)
+0.00
+59440
+0
+Total Public sharehold-
+11.91
+246740672
+9948824
+236791848
+Sub total (B) (2)
+0.15
+0.15
+3567736
+0
+3567736
+0.00
+0
+0
+0
+Hindu Undivided
+Family
+☑)
+59440
+0.00
+0.00
+Corporate Bodies
+viii) Foreign Nationals
+980
+36.44
+0
+0.00
+31042
+0
+31042
+0.00
+0.00
+980
+3794306
+11.16
+of the encumbered during the
+Company to total shares
+year
+N.A
+33922000
+N.A
+N.A
+1.67*
+N.A
+N.A
+40203960
+3.49*
+N.A
+N.A
+83976000
+4.03*
+N.A
+N.A
+97104040
+7.60*
+182868640
+N.A
+N.A
+7.60*
+182927440
+N.A
+N.A
+8.12*
+N.A
+N.A
+8.37*
+201385320
+Company
+N.A
+N.A
+Company
+9.72*
+NA
+9.43*
+ΝΑ 195343760
+8.83*
+ΝΑ
+8.83*
+N.A
+4.69*
+N.A
+4.05*
+NA
+1.94*
+NA
+1.64*
+33922000
+At the beginning of the year
+At the end of the year
+N.A
+1.41*
+CORPORATE OVERVIEW
+02 - 05
+1.87
+44943939
+Various dates during the
+Date wise Increase / Decrease
+in Share holding during the
+year specifying the reasons for
+increase/decrease
+10 Government of Singapore
+in Share holding during the
+year specifying the reasons for
+increase/decrease
+(e.g. allotment/ transfer/
+bonus/sweat equity etc)
+Date wise Increase / Decrease
+N.A
+N.A
+1.16
+23934745
+At the beginning of the year
+Life Insurance Corporation of India
+9
+Company
+Company
+Shares of the
+STATUTORY REPORTS
+06 - 84
+Sr.
+For Each of the top 10 shareholders
+no
+Shareholding at the
+beginning of the year
+FINANCIAL STATEMENTS
+85 - 206
+Raksha Valia
+Annexure - A
+during the year
+% of total
+No. of
+shares
+% of total
+Shares of the
+No. of
+shares
+Cumulative Shareholding
+0 231140480
+8
+At the end of the year
+Cumulative Shareholding
+during the year
+% of total
+Shares of the
+No. of
+shares
+Shareholding at the
+beginning of the year
+no
+Sr. For Each of the top 10 shareholders
+iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and
+ADRs) as on 31st March, 2016:
+9.60
+N.A 231140480
+N.A
+There is no change in number of shares held but there is change
+in percentage of holding due to allotment of shares by Company
+pursuant to merger of erstwhile Ranbaxy Laboratories Limited into
+the Company and allotment under ESOP schemes, during the year
+N.A
+N.A
+No. of % of total Shares of
+shares
+the Company
+-
+Cumulative Shareholding
+during the year
+% of total
+Shares of the
+231140480
+Shareholding at the
+beginning of the year
+No. of
+shares
+At the end of the year
+Date wise Increase
+/ Decrease in Share
+holding during the
+year specifying the
+reasons for increase /
+decrease (e.g. allotment
+/transfer/bonus / sweat
+equity etc):
+At the beginning of the
+year
+Dilip S. Shanghvi
+2(87)(ii)
+Sr.
+no
+iii) Change in Promoters' Shareholding (please specify, if there is no change)
+Note: There is no change in number of shares held but there is change in percentage of holding due to allotment of shares by Company pursuant
+to merger of erstwhile Ranbaxy Laboratories Limited into the Company and allotment under ESOP schemes, during the year.
+-1.56
+0
+9.60
+Company
+11.16
+No. of
+shares
+% of total
+Shares of the
+At the beginning of the year
+Aditya Medisales Limited
+7
+NA
+At the end of the year
+83976000
+At the beginning of the year
+Virtuous Share Investments Pvt. Ltd.
+6
+N.A
+At the end of the year
+97104040
+N.A
+182868640
+NA
+182927440
+ΝΑ
+1
+Viditi Investment Private Limited
+2
+Tejaskiran Pharmachem Industries
+Pvt Ltd
+3
+Family Investment Private Limited
+40203960
+ΝΑ
+4
+5
+Virtuous Finance Pvt. Limited
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+201385320
+ΝΑ
+195343760
+Quality Investment Private Limited
+100.00
+Foreign
+N.A
+100.00
+Subsidiary
+N.A
+South Africa
+Sun Pharmaceuticals (SA) (Pty)
+27
+Emirates
+2(87)(ii)
+100.00
+2(87)(ii)
+Subsidiary
+United Arab
+Sun Pharma Global FZE
+26
+Industriel Et Hospitalier
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+France
+N.A
+Office Pharmaceutique
+Ltd
+Sun Laboratories FZE
+100.00
+Subsidiary
+N.A
+Australia
+Sun Pharmaceutical Industries
+30
+zrt.
+2(87)(ii)
+99.99
+28
+Subsidiary
+Hungary
+Alkaloida Chemical Company
+29
+Emirates
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United Arab
+N.A
+25
+Limited
+2(87)(ii)
+N.A
+France
+Ranbaxy Pharmacie
+21
+2(87)(ii)
+85.31
+Subsidiary
+N.A
+Nigeria
+Subsidiary
+Ranbaxy Nigeria Ltd.
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Netherlands
+Ranbaxy (Netherlands) BV.
+19
+2(87)(ii)
+71.22
+20
+100.00
+2(87)(ii)
+Generiques
+100.00
+Subsidiary
+N.A
+India
+Universal Enterprises Private
+24
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Brazil
+Sun Farmaceutica do Brasil Ltda.
+23
+of America
+Inc
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Sun Pharmaceutical Industries, United States
+22
+2(87)(ii)
+(Australia) Pty Ltd.
+31
+Sun Global Development FZE
+Subsidiary
+N.A
+United States
+The Taro Development
+Corporation
+40
+of America
+2(87)(ii)
+100.00
+Subsidiary
+100.00
+N.A
+Pharmalucence Inc.
+39
+Ltd.
+2(87)(ii)
+100.00
+Subsidiary
+2(87)(ii)
+100.00
+Subsidiary
+United States
+2(87)(ii)
+of America
+41
+100.00
+Subsidiary
+N.A
+United States
+Mutual Pharmaceutical
+Company, Inc.
+43
+of America
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United States
+Chattem Chemicals Inc
+42
+of America
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United States
+Dusa Pharmaceuticals Inc.
+N.A
+U24100MH2012FTC225970
+Subsidiary
+India
+38
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Canada
+Sun Global Canada Pty Ltd
+33
+2(87)(ii)
+100.00
+34
+Subsidiary
+Korea
+Sun Pharmaceuticals Korea Ltd
+32
+Emirates
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United Arab
+N.A
+Sun Pharma Philippines Inc.
+Philippines
+N.A
+Kenya
+Sun Pharma East Africa Ltd.
+37
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Japan
+Sun Pharma Japan Ltd
+36
+Emirates
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United Arab
+Sun Pharma Healthcare FZE
+35
+2(87)(ii)
+100.00
+Subsidiary
+Caraco Pharmaceuticals Pvt.
+N.A
+Malasiya
+Ranbaxy (Malasiya) Sdn. bhd.
+Mexico
+SPIL De Mexico S.A. DE C.V.
+1
+Associate
+Section
+Applicable
+Holding/ % of shares
+held*
+Subsidiary/
+the Company
+N.A
+CIN/GLN
+Sr. No Name of the Company
+III PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES AS ON 31st MARCH, 2016
+% to total turnover
+of the Company
+100%
+210
+NIC code of the
+Product/Service
+Pharmaceuticals
+1
+Sr. no Name and Description of main products/services
+All the business activities contributing 10% or more of the total turnover of the Company:
+Address of
+Subsidiary
+100.00
+2(87)(ii)
+2(87)(ii)
+75.00
+Subsidiary
+N.A
+Mexico
+Sun Pharma De Mexico S.A.
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Mauritius
+Sun Pharma Holdings
+34
+(Bangladesh) Ltd.
+2(87)(ii)
+72.50
+Subsidiary
+N.A
+Bangladesh
+Sun Pharmaceutical
+2
+PRINCIPAL BUSINESS ACTIVITY OF THE COMPANY
+DE C.V.
+II
+Mumbai-400078, Tel no. 022-2596 3838
+ANNEXURE TO
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+39
+ISRAEL MAKOV
+Chairman
+For and on behalf of the Board of Directors
+30th May, 2016
+Mumbai
+BOARDS' REPORT
+The Directors also wish to express their gratitude to
+investors for the faith that they continue to repose in the
+Company.
+ACKNOWLEDGEMENTS
+The Business Responsibility Report of the Company for
+the year ended 31st March, 2016, in line with Green
+initiative, is made available on the website of the Company
+(http://www.sunpharma.com/pdflist/all-documents)
+and forms part of the Annual Report, and is kept at the
+Registered office / Corporate office of the Company for
+inspection. A copy of the aforesaid report shall be made
+available to such of those shareholders who are desirous
+and interested, upon receipt of a written request from them.
+BUSINESS RESPONSIBILITY REPORTING
+During the year, at the request of the Company, Credit
+Analysis & Research Ltd., (CARE) has withdrawn the ratings
+assigned to the Non-Convertible Debenture (NCD) issue
+and bank facilities of the Company. The Company had
+voluntarily requested for such withdrawal since it has fully
+repaid the amounts under the said NCD issue and the bank
+facilities continue to be rated 'A1+'/'AAA (Stable)' by ICRA
+Ltd. and CRISIL Ltd.
+FINANCIAL STATEMENTS
+85-206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+Subsidiary
+Your Directors wish to thank all stakeholders, employees
+and business partners, Company's bankers, medical
+profession and business associates for their continued
+support and valuable co-operation.
+FORM MGT-9
+EXTRACT OF ANNUAL RETURN
+as on the financial year ended 31.03.2016
+LBS Marg, Bhandup (W),
+C-13, Pannalal Silk Mills Compound,
+Link Intime India Pvt. Ltd.
+Yes
+0265-6615500
+SPARC, Tandalja, Vadodara 390020, Gujarat
+Sun Pharmaceutical Industries Limited
+Company Limited By Shares
+1st March, 1993
+L24230GJ1993PLC019050
+vii) Name, Address, and Contact details of
+Registrar and Transfer Agent:
+vi) Whether listed company:
+Contact no of registered office:
+iv) Category/Sub-category of the Company:
+v) Address of the Registered Office and
+Contact details:
+iii) Name of the Company:
+Registration date:
+ii)
+CIN:
+i)
+I.
+REGISTRATION AND OTHER DETAILS:
+Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1)
+of the Companies (Management and Administration) Rules, 2014
+Annexure-A
+2(87)(ii)
+5
+Peru
+2(87)(ii)
+100.00
+U51900MH2006PTC159266 Subsidiary
+India
+Faststone Mercantile Company
+13
+2(87)(ii)
+100.00
+U51900MH2006PTC159237 Subsidiary
+Private Limited
+India
+12
+Section
+held*
+Applicable
+% of shares
+Holding/
+Subsidiary/
+Associate
+CIN/GLN
+Address of
+the Company
+Sr. No Name of the Company
+Softdeal Trading Company
+Private Ltd
+14
+Realstone Multitrade Private
+India
+18
+2(87)(ii)
+100.00
+U24231GJ1983PLC006323 Subsidiary
+India
+Gufic Pharma Ltd.
+17
+2(87)(ii)
+100.00
+100.00
+U24232PB1984PLC005725 Subsidiary
+U67120PB1988PLC008444 Subsidiary
+India
+Vidyut Investments Ltd.
+16
+India
+Ranbaxy Drugs Ltd.
+15
+Limited
+2(87)(ii)
+100.00
+U51900MH2006PTC15889 Subsidiary
+Annexure - A
+Sun Pharmaceutical Peru
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+Centre Limited
+2(87)(ii)
+100.00
+U90009GJ2010PLC062892 Subsidiary
+India
+Green Eco Development
+7
+Industries" Ltd.
+2(87)(ii)
+8
+100.00
+N.A
+Russia
+OOO "Sun Pharmaceutical
+6
+S.A.C.
+2(87)(ii)
+99.33
+Subsidiary
+N.A
+Subsidiary
+Sun Pharma De Venezuela, CA
+Venezuela
+9
+02 - 05
+CORPORATE OVERVIEW
+40-
+2(87)(ii)
+100.00
+U73100MH2005PTC150606 Subsidiary
+India
+Skisen Labs Private Limited
+11
+Limited
+2(87)(ii)
+100.00
+2(87)(ii)
+100.00
+2(87)(ii)
+100.00
+N.A
+Subsidiary
+U25200MH1997PLC240268 Subsidiary
+U45200MH2010PTC201611 Subsidiary
+India
+India
+Neetnav Real Estate Private
+10
+Sun Pharma Laboratories Ltd.
+06 - 84
+of America
+2(87)(ii)
+SUN
+as ZAO Ranbaxy)
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Russia
+AO Ranbaxy (Formerly known
+76
+2(87)(ii)
+-
+100.00
+N.A
+Spain
+Laboratorios Ranbaxy S.L.U.
+75
+2(87)(ii)
+96.70
+Subsidiary
+N.A
+Romania
+Subsidiary
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+South Africa
+Ranbaxy Pharmaceuticals (Pty)
+78
+Ukraine" LLC
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Ukrain
+"Ranbaxy Pharmaceuticals
+77
+Associate
+Section
+held*
+% of shares Applicable
+Holding/
+Subsidiary/
+CIN/GLN
+Address of
+the Company
+Sr. No Name of the Company
+Annexure - A
+FINANCIAL STATEMENTS
+85 - 206
+SC Terapia SA
+N.A
+74
+68.98
+70
+of America
+2(87)(ii)
+68.98
+Subsidiary
+N.A
+United States
+Taro Pharmaceutical
+Laboratories Inc.
+69
+Taro Pharmaceuticals (UK) Ltd
+of America
+68.98
+Subsidiary
+N.A
+United States
+One Commerce Drive LLC
+of America
+2(87)(ii)
+68.98
+Subsidiary
+2(87)(ii)
+United
+Kingdom
+N.A
+Subsidiary
+Subsidiary
+N.A
+Canada
+Taro Pharmaceuticals Canada, Ltd.
+73
+2(87)(ii)
+68.98
+Subsidiary
+N.A
+Ireland
+Taro Pharmaceuticals Ireland Ltd
+72
+2(87)(ii)
+68.98
+Subsidiary
+U51397MH2004PTC144179
+India
+Taro Pharmaceutical India Pvt Ltd
+71
+2(87)(ii)
+68.98
+2(87)(ii)
+N.A
+Subsidiary
+2(87)(ii)
+Australia
+Ranbaxy Australia Proprietary
+88
+Kingdom
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United
+N.A
+Ranbaxy (UK) Limited
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Italy
+Ranbaxy Italia S.P.A.
+86
+2(87)(ii)
+100.00
+87
+Subsidiary
+100.00
+2(87)(ii)
+Canada
+41
+Ranbaxy Pharmaceuticals
+91
+Ranbaxy Morrocco LLC)
+LLC (Formerly known as
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Morocco
+Sun Pharmaceuticals Morocco
+90
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Ireland
+Ranbaxy Ireland Limited
+89
+Limited
+Subsidiary
+100.00
+N.A
+Ranbaxy Egypt LLC
+N.A
+Brazil
+Ranbaxy Farmaceutica Ltda.
+81
+Kingdom
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Subsidiary
+United
+80
+Proprietary Ltd
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+South Africa
+Ranbaxy South Africa
+Ltd.
+Ranbaxy Holdings (UK) Ltd.
+100.00
+2(87)(ii)
+82
+85
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Peru
+Ranbaxy PRP (Peru) S.A.C.
+84
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Poland
+Ranbaxy (Poland) Sp. zoo
+83
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Thailand
+Ranbaxy (Thailand) Company
+Limited
+Egypt
+United States
+79
+68.98
+LLC
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United States
+Dungan Mutual Associates,
+50
+of America
+of America
+2(87)(ii)
+Subsidiary
+N.A
+United States
+URL PharmPro, LLC
+49
+of America
+2(87)(ii)
+100.00
+Subsidiary
+100.00
+51
+Taro Pharmaceutical Industries
+Israel
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+France
+Sun Pharmaceuticals France
+53
+Kingdom
+Limited
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United
+Sun Pharmaceuticals UK
+52
+Ltd
+2(87)(ii)
+68.98
+Subsidiary
+N.A
+United States
+54
+Sirius Laboratories Inc.
+of America
+100.00
+Subsidiary
+N.A
+United States
+Perryton Wind Power LLC
+44
+Associate
+Section
+held*
+2(87)(ii)
+% of shares Applicable
+CIN/GLN
+Address of
+the Company
+Sr. No Name of the Company
+Annexure-A
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+2(87)(ii)
+42
+PHARMA
+Holding/
+Subsidiary/
+of America
+45
+PI Real Estate Ventures, LLC
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United States
+Dusa Pharmaceuticals New
+York Inc.
+47
+of America
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United States
+Morley and Company, Inc.
+46
+of America
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+United States
+48
+Sun Pharmaceuticals Spain, SLU
+N.A
+N.A
+Taro Hungary Intellectual
+63
+of America
+2(87)(ii)
+68.98
+Subsidiary
+N.A
+United States
+Taro Pharmaceuticals USA Inc
+Ν.Α
+62
+West Indies
+Islands, British
+America Inc.
+2(87)(ii)
+68.98
+Subsidiary
+N.A
+Cayman
+Taro Pharmaceuticals North
+2222222 22
+61
+Subsidiary
+2(87)(ii)
+Subsidiary
+N.A
+Canada
+Spain
+2(87)(ii)
+68.98
+Subsidiary
+N.A
+2(87)(ii)
+68.98
+68.98
+N.A
+Israel
+Netherlands
+Taro Pharmaceuticals Europe B.V
+Taro Pharmaceuticals Inc.
+3 Sky Line LLC
+67
+66
+65
+Taro International Ltd.
+64
+Property Licensing LLC
+Subsidiary
+2(87)(ii)
+Hungary
+N.A
+Italy
+Sun Pharmaceuticals Italia S.R.L.
+57
+2(87)(ii)
+100.00
+Subsidiary
+Germany
+Sun Pharmaceuticals Germany
+GmbH
+56
+N.A
+(Europe) B.V.
+100.00
+Subsidiary
+N.A
+Netherlands
+Sun Pharmaceutical Industries
+55
+100.00
+2(87)(ii)
+100.00
+2(87)(ii)
+Subsidiary
+Subsidiary
+100.00
+Subsidiary
+N.A
+Switzerland
+Sun Pharma Switzerland Ltd.
+60
+2(87)(ii)
+100.00
+Subsidiary
+N.A
+Alkaloida Sweden AB
+59
+Sweden
+2(87)(ii)
+2(87)(ii)
+58
+Aditya Acquisition Company
+Limited
+N.A
+Israel
+100.00
+Subsidiary
+53
+(xii) It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key
+Managerial Personnel and other Employees.
+Annexure - B
+Gebauer Alexander (Dr.), President & Head-Global R&D, 0.59; Malhotra Ashwani Kumar, Executive Vice President-
+Global Pharma Manufacturing, 0.63; Bhandari Prabha (Dr.), Head Corporate Quality API Manufacturing, 0.73;
+Vijayaraghavan Bakthavathsalan (Dr.), Vice President-IP & Project Management, 0.86; Gessner Arno Alexander
+(Dr.),Head-Global Quality, 0.88; Yamdagni Vipul K., Regional Head Quality Asia 1 (Oral Dosage Manufacturing),0.92;
+Tiwari Sanjay, Director-Pharma Manufacturing (Dewas), 0.96; Santhakumar P. Rita, Director - Analytical Research,0.98;
+Mathur Rajeev S., Vice President and Global Head of Regulatory, 0.98; Khurana Jitender Pal Singh, Site Quality Head,
+0.99; Sawhney Arun, President, 0.12; Jaju G. K., President and Global Head-Technical Operations, Supply Chain,
+Procurement & API Marketing, 0.34; Banerjee Indrajit, President, 0.36; Sibal Rajeev, Vice President & Head-India Region,
+0.40; Patawari S. K., Vice-President, 0.64; Cranmer Martin R. (Dr.), Regional Quality Head-India/Asia Region 1, 0.72;
+Singh Maninder, Global Financial Controller, 0.79; Kohli Surinder Kumar, Vice President-Global Material Sourcing, 0.83;
+Loomba Satnam Singh, Head- DF Contract Manufacturing & Loan Licensing, 0.98; Jain Anil Kumar CEO - API Business
+(SR VP), 0.99; Rajamannar Dr. Thennati, Executive Vice President - R&D, 0.42; Baldota Uday V., Chief Financial Officer,
+0.63; Ganorkar Kirti W., Sr. Vice President - Business Development, 0.70; Bhowmick Subhas, Sr. Vice President - R&D
+(Formulation Development), 0.99.
+SUN
+Note: All the details of remuneration given above are as per Form 16 as per Income Tax Act, and the ratios are calculated on that basis.
+The ratio of remuneration of the highest paid director to that of the employees who are not directors but receive
+remuneration in excess of the highest paid director i.e. Mr. Sudhir V. Valia, Whole -Time Director during the financial
+year 2015-16 are as follows:
+(xi) Ratio of the remuneration of the highest paid director to that of the employees who are not directors but
+receive remuneration in excess of the highest paid Director during the year;
+FINANCIAL STATEMENTS
+85 - 206
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993, regarding the Companies Act
+and dealing with client - Not applicable to the
+Company;
+02 - 05
+CORPORATE OVERVIEW
+52
+(x) Key parameters for any variable component of remuneration availed by the directors;
+No Variable component paid to Directors for the financial year 2015-16.
+% of Profit)
+Not Applicable due to Loss
+Mr. Sailesh T. Desai
+0.02
+― ANNUAL REPORT 2015-16
+Mr. Sunil Ajmera Mr. Sudhir V. Valia
+0.01
+0.03
+0.04
+0.03
+STATUTORY REPORTS
+06 - 84
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015
+made effective from 15th May, 2015;
+Annexure - C
+Mr. Dilip S. Shanghvi Mr. Uday Baldota
+The Securities and Exchange Board of India
+(Buyback of Securities) Regulations, 1998 - Not
+applicable to the Company for the year under
+review;
+The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2009-
+Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2009 - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 1992
+effective up to 14th May, 2015;
+g.
+f.
+e.
+We have examined the books, papers, minute books, forms
+and returns filed and other records maintained by the
+Company for the financial year ended on 31st March, 2016,
+according to the provisions of:
+d.
+PHARMA
+C.
+Based on our verification of the Company's books, papers,
+minute books, forms and returns filed and other records
+maintained by the company and also the information
+provided by the Company, its officers, agents and
+authorized representatives during the conduct of secretarial
+audit, we hereby report that in our opinion, the company
+has, during the audit period covering the financial year
+ended on 31st March, 2016, complied with the statutory
+provisions listed hereunder and also that the Company
+has proper Board-processes and compliance-mechanism
+in place to the extent, in the manner and subject to the
+reporting made hereinafter:
+We have conducted the Secretarial Audit of the
+compliances of applicable statutory provisions and the
+adherence to good corporate governance practice by Sun
+Pharmaceutical Industries Limited ("the Company").
+Secretarial Audit was conducted in a manner that provided
+us a reasonable basis for evaluating the corporate conducts
+/ statutory compliances and expressing our opinion thereon.
+Vadodara, Gujarat.
+Sun Pharmaceutical Industries Limited,
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration Personnel) Rules, 2014]
+FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2016.
+SECRETARIAL AUDIT REPORT
+Form No. MR-3
+The Members,
+To,
+b.
+(in Millions)
+(v) the explanation on the relationship between
+average increase in remuneration and Company
+performance:
+-time Directors and Key
+Particulars
+0.12
+80462.8
+(vii) Variations in the market capitalisation of the Company, price earnings ratio as at the closing date of the
+current financial year and previous financial year;
+Not Applicable due to Loss
+98.75
+(In Millions)
+Aggregate remuneration of Whole-time Directors and Key Managerial Personnel in FY 2015-16
+Remuneration of Whole-time Directors and Key Managerial Personnel as % of Profit Before Tax
+Total Revenue of the Company in FY 2015-16[standalone]
+Remuneration of Whole-time Directors and KMP (as % of revenue)
+(vi) Comparison of the remuneration of the Whole-time Directors and Key Managerial Personnel against the
+performance of the Company;
+Annexure - B
+Market Capitalisation (in Millions)
+PHARMA
+SUN
+51
+The Company's Compensation philosophy is related to
+pay to performers and to be market competitive. We
+continue to focus on attraction & retention through
+individual performance.
+(iv) the number of permanent employees on the rolls of
+Company as on 31st March 2016: 14747
+remuneration of employees in the financial year
+2015-16 (Median -2016/Median 2015) - 7.21%
+16.72%
+31.41%
+* Remuneration includes sitting fees paid. Sitting fees increased from 50000 to 1,00,000 w.e.f. 1st April, 2015. No
+commission was paid to Non-Executive Directors for the year 2015-16.
+h.
+(iii) the percentage increase in the median
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PE ratio(standalone)
+PE ratio(consolidated)
+As on 31st
+March, 2015
+2120664.73
+Not applicable
+due to loss
+54.2
+Remuneration of Whole
+Whole-time Directors and
+KeyManagerial Personnel
+(as % of Revenue)
+Remuneration of
+(ix) Comparison of the each remuneration of the Key Managerial Personnel against the performance of the
+Company;
+Average percentage increase in salary of employees other than managerial personnel: 12.42%
+Average percentage increase in salary of managerial personnel: 9.90%
+(viii) Average percentile increase already made in the salaries of employees other than the managerial personnel
+in the last financial year and its comparison with the percentile increase in the managerial remuneration and
+justification thereof and point out if there are any exceptional circumstances for increase in the managerial
+remuneration:
+* The IPO price of ₹150 per equity share of 10/-each has been adjusted for split and bonus issues over the years. However, it has not been adjusted for
+dividend yield.
+65600
+65556
+1.25
+1.25
+819.45
+820.00
+% change
+*Price at IPO
+(in December, 1994 (*)
+*Market Price as on
+31st March, 2016 (*)
+NSE
+BSE
+Particulars
+Percentage increase / (decrease) in the market quotations of the shares of the Company in comparison to the
+rate at which the Company came out with the last public offer
+-22.7%
+Not applicable
+due to loss
+41.8
+-6.94%
+NA
+% change
+As on 31st
+March, 2016
+1973517.37
+Managerial Personnel (as
+The Securities and Exchange Board of India (Share
+Based Employee Benefits) Regulations, 2014;
+the CSR policy and projects or
+programmes:
+i.
+For C. J. Goswami & Associates,
+The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or
+effectiveness with which the management has conducted the affairs of the Company.
+Where ever required, we have obtained the Management representation about the compliance of laws, rules and
+regulations and happening of events etc.
+We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
+We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
+correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct
+facts are reflected in secretarial records. We believe that the processes and practices we followed provide a reasonable
+basis for our opinion.
+4.
+3.
+2.
+1.
+Our report of even date is to be read along with this letter.
+Practicing Company Secretaries
+Vadodara, Gujarat.
+The Members,
+To,
+ANNEXURE 1 TO THE SECRETARIAL AUDIT REPORT
+Annexure - C
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+55
+This report is to be read with our letter of even date which
+is annexed as Annexure 1 and forms an integral part of this
+report.
+Sun Pharmaceutical Industries Limited,
+Date: 30th May, 2016.
+Place: Mumbai.
+CHINTAN J. GOSWAMI
+Mem No. 33697
+The Company has identified health, education & livelihood, environment protection, water
+management and disaster relief as the areas where assistance is provided on a need-based and
+case-to-case basis. Your Company persisted with participation in such activities at the local, grass-
+root level during the year.
+http://www.sunpharma.com/policies
+Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia and Ms. Rekha Sethi
+Consequent to the loss incurred by the Company in the immediately preceding financial year,
+the average net profits of the Company for the last three financial years was negative, therefore
+the Company was not required to spend on CSR activities during the previous year. However, the
+Company has voluntarily spent on CSR activities.
+100.00%
+The CSR policy of the Company encompasses its philosophy towards Corporate Social
+Responsibility and lays down the guidelines and mechanism for undertaking socially useful
+programs for welfare & sustainable development of the community at large.
+Particulars
+Total amount spent for the
+financial year:
+Prescribed CSR Expenditure
+(two percent of the
+amount as in item 3 above):
+Details of CSR spend for the
+financial year:
+Average net profit of the
+Company for last three
+financial years:
+Composition of the CSR
+Committee:
+Proprietor
+Reference to the web-link to
+Details
+ANNUAL REPORT ON CSR ACTIVITIES FOR THE FINANCIAL YEAR 2015-16
+Annexure - D
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+56-
+Date: 30th May, 2016.
+Place: Mumbai.
+C. P. No. 12721
+A brief outline of the Company's
+CSR policy, including overview
+of projects or programmes
+proposed to be undertaken:
+Mem No. 33697
+C. P. No. 12721
+CHINTAN J. GOSWAMI
+Proprietor
+For C. J. Goswami & Associates,
+Practicing Company Secretaries
+During the period under review, the Company has complied
+with the provisions of the Act, Rules, Regulations, Guidelines
+etc. mentioned above except that:
+FINANCIAL STATEMENTS
+85-206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+54-
+(iii) The Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015 made effective from 1st December, 2015;
+(ii) The Listing Agreements entered into by the Company
+with BSE Limited and National Stock Exchange of India
+Limited ("Stock Exchange(s)") effective up to 30th
+November, 2015;
+(i) Secretarial Standards with respect to meeting of Board
+of Directors (SS-1) and General Meetings (SS-2) issued
+by The Institute of Company Secretaries of India under
+the provisions of Companies Act, 2013 and made
+effective from 1st July, 2015;
+We have also examined compliance with the applicable
+clauses of the following:
+i.
+The Securities and Exchange Board of India
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011;
+The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India
+("SEBI") Act, 1992:
+Foreign Exchange Management Act, 1999 and the
+rules and regulations made thereunder to the extent of
+Foreign Direct Investment, Overseas Direct Investment
+and External Commercial Borrowings;
+V.
+iv.
+The Depositories Act, 1996 and the Regulations and
+Bye-laws framed thereunder;
+iii.
+The Securities Contracts (Regulation) Act, 1956
+('SCRA') and the rules made thereunder;
+ii.
+The Securities and Exchange Board of India (Issue
+and Listing of Debt Securities) Regulations, 2008;
+The Companies Act, 2013 (the Act) and the rules made
+thereunder;
+a.
+ii.
+There has been a delay of 3 working days in filing of
+disclosure under Regulation 30 of the SEBI (Substantial
+Acquisition of Shares and Takeovers) Regulations,
+2011 for disclosing the aggregate shareholding and
+voting rights in Zenotech Laboratories Limited (Target
+Company) as of 31st March, 2015.
+During the financial year 2015-16, the Company has
+published financial results in the English language
+newspaper but not published in the regional language
+newspaper, where the registered office of the Company is
+situated as per the requirement of Clause 41 of the Listing
+Agreement/Regulation 47 of the SEBI (Listing Obligations
+and Disclosure Requirements) Regulations, 2015.
+Shares of 1/- each to Sun Pharma ESOP Trust under
+Sun Employees Stock Option Plan - 2015.
+-
+The Company has allotted 447,825 Equity Shares of
+1/- each to eligible employees who have exercised
+their options under Sun Employees Stock Options
+Scheme 2015 and also allotted 160,000 Equity
+The Company has allotted 334,956,764 Equity Shares
+of 1/- each aggregating to ₹ 334,956,764/- on 10th
+April, 2015 to the shareholders of erstwhile Ranbaxy
+Laboratories Limited pursuant to merger of erstwhile
+Ranbaxy Laboratories Limited into the Company.
+We further report that during the year under review:
+The Company has allotted 5,000 9.20% Secured Rated
+Redeemable Non-Convertible Debentures (NCDs) of
+the face value of ₹1,000,000/- each aggregating * 500
+Crores on 10th April, 2015 to the NCD holders who
+were holding NCDs of erstwhile Ranbaxy Laboratories
+Limited, as on 7th April, 2015; pursuant to merger
+of erstwhile Ranbaxy Laboratories Limited into the
+Company. The NCDs were listed on Wholesale Debt
+Market segment of National Stock Exchange of India
+Limited. Further, the Company has paid the interest
+thereon and redeemed by the due date i.e. 23rd
+November, 2015.
+Factories Act, 1948.
+The Narcotic Drugs & Psychotropics Substances
+Act, 1985;
+Drugs and Cosmetics Act, 1940 and rules made
+thereunder;
+>
+>
+>
+b) Identified and complied with following laws applicable
+to the Company:
+Annexure - C
+Adequate systems and processes commensurate
+with its size and operations, to monitor and ensure
+compliance with applicable laws, rules, regulations and
+guidelines;
+a)
+Based on the compliance mechanism established by the
+Company and on the basis of the Compliance Certificate(s)
+issued by the Respective Plant Heads/Occupiers of R&D
+Centres of the Company and taken on records by the Board
+of Directors at their meeting(s), we are of the opinion that
+the management has:
+Adequate notice of at least seven days was given to all
+directors to schedule the Board Meetings and Meetings
+of Committees except in case meeting was conducted
+by issued of shorter notice. Agenda and detailed notes
+on agenda were sent in advance in adequate time
+before the meetings and a system exists for Directors
+for seeking and obtaining further information and
+clarifications on the agenda items before the meeting
+and for meaningful participation at the meeting.
+Majority decision is carried through while the dissenting
+members' views, if any, are captured and recorded as
+part of the minutes.
+The Board of Directors of the Company is duly
+constituted with proper balance of Executive Directors,
+Non-Executive Directors, Independent Directors and
+Woman Director.
+3.
+2.
+1.
+We further report that:
+We further report that, we are unable to express our opinion
+with regard to the remuneration paid to Managing Director
+and Whole-time Directors of the Company for FY 2015-16
+as the Company has made further representation to the
+Central Government on the letter received from Central
+Government for approval of maximum remuneration. The
+reply from Central Government in this regard is awaited.
+i.
+33.33%
+Sethi
+111.11%
+Total (2)
+Others, please specify
+Commission
+committee meetings
+900000
+0
+900000
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+Directors
+Other Non-Executive
+2
+6500000
+0
+Fee for attending board &
+800000
+0
+0
+(Company
+Secretary)
+Mr. Sunil Ajmera
+no.
+Particulars of Remuneration
+Sr.
+(in Million)
+Annexure - A
+C) Remuneration To Key Managerial Personnel Other Than MD/MANAGER/WTD
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+0
+― ANNUAL REPORT 2015-16
+49
+63660239
+Total Managerial
+Remuneration (A+B)
+0 900000 900000
+800000 900000 7400000
+1,00,000 per Director per Meeting
+1900000
+1600000
+Not applicable since no commission was paid during the year and
+for Sitting fees.
+Overall Ceiling as per
+the Act
+1100000
+1100000
+Total (B)=(1+2)
+SUN
+1600000
+1900000
+1100000
+1
+Independent Directors
+Mr. Israel
+Makov
+Mr. Ashwin
+Dani
+Mr. S Mohanchand
+Dadha
+Shah
+Mr. Keki Ms. Rekha Mr. Hasmukh
+Mistry
+Total
+Amount
+No. Remuneration
+Name of Directors
+Fee for attending board &
+Sr. Particulars of
+Pursuant to the approval of the Shareholders at the 22nd Annual General
+Meeting, the Company had applied to the Central Government under
+Section 197(3) read with Schedule V of the Companies Act, 2013 for
+approval of Remuneration as approved by members. However, the
+approval granted by the Central Government was for 60,00,000 (Rupees
+Sixty Lacs only) per annum for a period of three years with effect from 1st
+April, 2014 to 31st March, 2017 for which the Company has made further
+representation, to the Central Government. During the year 2015-2016,
+the Company has paid remuneration upto the permissible limit under
+Schedule V to the Managing Director and Whole-time Director(s).
+Mr. Dilip S. Shanghvi Mr. Sudhir V. Valia Mr. Sailesh T Desai
+1.84 Crores as computed as per Part-A, Section II of Schedule V of the
+Companies Act, 2013.
+(Amount in )
+Total
+Sr. No. Particulars of Remuneration
+Ceiling as per the Act
+Annexure - A
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+Not Applicable
+CORPORATE OVERVIEW
+02 - 05
+B) Remuneration to other directors for the year ended 31st March, 2016:
+(The remuneration to Non-Executive Directors consists only of sitting fees)
+1100000
+1100000
+1900000
+1100000
+Total (1)
+0
+0
+0
+0
+0
+0
+0
+Others, please specify
+0
+0
+0
+0
+0
+0
+0
+Commission
+committee meetings
+6500000
+0
+800000
+1600000
+Key Managerial Personnel
+Mr. Uday Baldota
+(Chief Financial
+100.00%
+Total
+1
+Ratio of remuneration* of each Director to
+median remuneration of employees
+Ms. Rekha Sethi
+Mr. Keki M. Mistry
+Mr. Ashwin S. Dani
+Mr. Hasmukh S. Shah
+Mr. S. Mohanchand Dadha
+Mr. Sailesh T. Desai
+Mr. Sudhir V. Valia
+Mr. Dilip S. Shanghvi
+Mr. Israel Makov
+Name of Director
+2.32
+(i) Ratio of the remuneration* of each Director to the median remuneration of the employees of the Company for
+the financial year 2015-16:
+Annexure - B
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+(give Details)
+Authority [RD/ NCLT Appeal made, if any
+/ COURT]
+- NIL-
+Compounding
+Punishment
+INFORMATION REQUIRED UNDER SECTION 197 OF THE ACT READ WITH RULE 5(1) OF THE COMPANIES
+(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014.
+Penalty
+55.60
+33.54
+88.24%
+40.53%
+(28.58)%
+80.06%
+(27.55)%
+Mr. Uday Baldota, Chief Financial Officer
+Ms. Rekha Sethi, Non-Executive, Independent Director
+Mr. Sunil Ajmera, Company Secretary
+Mr. Ashwin S. Dani, Non-Executive, Independent Director
+Mr. Keki M. Mistry, Non-Executive, Independent Director
+Mr. Hasmukh S. Shah, Non-Executive, Independent Director
+Mr. S. Mohanchand Dadha, Non-Executive, Independent Director
+55.82
+Mr. Sailesh T. Desai, Whole-Time Director
+Mr. Israel Makov, Chairman
+in Remuneration* in the
+Financial Year 2015-2016
+% increase/(decrease)
+Name & Designation of Director & KMP
+(ii) Percentage increase in remuneration* Non-Executive of each Director, Chief Financial Officer, Chief Executive
+Officer, Company Secretary or Manager, if any, during the financial year 2015-16:
+2.83
+2.06
+2.83
+4.90
+4.12
+Mr. Dilip S. Shanghvi, Managing Director
+Mr. Sudhir V. Valia, Whole-Time Director
+OTHER OFFICERS
+IN DEFAULT
+Compounding
+Punishment
+0
+0
+Sweat Equity
+0
+0
+0
+Stock Option
+2345
+0
+0
+0
+0
+(c)
+0.19
+0.15
+0.04
+(b) Value of perquisites under section 17(2) of the Income Tax Act,
+1961
+42.30
+32.80
+9.50
+(a) Salary as per provisions contained in section 17(1) of the
+Income-tax Act, 1961
+Gross salary
+Profits in lieu of salary under section 17(3) of the Income Tax
+Act, 1961
+Commission as % of profit
+0
+0
+Penalty
+DIRECTORS
+Compounding
+/ Punishment/
+Compounding fees
+imposed
+C.
+B.
+Punishment
+COMPANY
+Penalty
+A.
+50
+Brief Description Details of Penalty
+Section of the
+Companies Act
+Type
+VII PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
+42.49
+32.95
+9.54
+0
+0
+0
+Total
+Others, please specify
+0
+Officer)
+a)
+Rural
+b)
+Date: 30th May, 2016
+Place: Mumbai
+Whole-Time Director and Member - CSR Committee
+SUDHIR V. VALIA
+58-
+Date: 30th May, 2016
+SI.
+No.
+Place: New York
+DILIP S. SHANGHVI
+For and on behalf of the Board
+The CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company.
+Note: Please note that the overhead expenditure is Nil.
+116.54
+Grand Total
+under Item No.(x)
+Managing Director and Chairman - CSR Committee
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+1.62
+Directly
+- Nagar Taluka, Ahmednagar Distt.,
+- Madurantakam Taluka, Kanchipuram
+district
+7
+Green Belt
+Development
+Environment
+Panoli, Bharuch District,
+0.48
+0.14
+0.14
+Directly
+under Item No.(iv)
+57
+SUN
+district
+development
+PDS System
+Directly
+Cumulative
+expenditure
+Annexure-D
+0.02
+0.82
+projects or
+programs
+spent on the
+Amount
+(Budget)
+Project or
+Programwise
+Amount Outlay
+Halol Taluka, Panchmahal Distt,
+Projects or Programs
+1. Local Area or other
+2. Specify the State and District where
+projects or programs were undertaken
+Sector in which
+the project is
+covered
+Identified
+* 116.54 Million
+CSR Project
+upto to the
+reporting
+period
+1.24
+0.02
+agency
+0.58
+0.39
+0.64
+Madurantakam Taluka, Kanchipuram
+Strengthening
+9
+buildings
+under Item No.(x)
+restoration of
+development
+including
+Rural
+Art and culture
+8
+Directly
+(in Million)
+Amount
+spent Directly
+or through
+implementing
+3.97
+or Activity
+Item No.(ii)
+2
+Mobile Medical
+Unit
+Healthcare under
+Item No.(i)
+Halol, Nagar, Mohali, Dewas, Toansa
+and Paonta Sahib
+45.27
+31.58
+32.81
+Through
+Implementing
+Agency
+3
+Sanitation
+Healthcare under
+- Halol Taluka, Panchmahal Distt,
+Panoli, Bharuch District,
+Programme
+Item No.(i)
+Halol Taluka, Panchmahal Dist,-
+Panoli, Bharuch District- Nagar Taluka,
+4.73
+2.89
+Agency
+Implementing
+Pan India
+Healthcare under
+Item No.(i)
+Amount unspent, if any:
+CSR Project
+No.
+or Activity
+Identified
+Sector in which
+the project is
+covered
+Projects or Programs
+1. Local Area or other
+2. Specify the State and District where
+projects or programs were undertaken
+Amount Outlay
+(Budget)
+Project or
+4.40
+Programwise
+Amount
+spent on the
+projects or
+programs
+80.00
+Cumulative
+expenditure
+upto to the
+reporting
+period
+80.00
+(in Million)
+Amount
+spent Directly
+or through
+implementing
+agency
+Through
+1
+Healthcare
+Project
+80.00
+Nil
+Directly and
+Ahmednagar Distt.- Madurantakam
+5
+Programme
+Drinking Water
+Programme
+6 Educational
+Disaster Relief
+under Item No.(i)
+Drinking Water
+under Item No.(i)
+Madurantakam Taluka, Kanchipuram
+0.21
+0.21
+0.21
+Disaster Relief
+Directly
+Madurantakam Taluka, Kanchipuram
+0.14
+0.08
+0.08
+Directly
+district
+Education under
+Programme
+district
+through
+SI.
+Implementing
+Taluka, Kanchipuram district
+Agency
+4
+20%
+02 - 05
+CORPORATE OVERVIEW
+N.A.
+The options granted shall be exercisable till expiry of ten years from the date
+of their grant and shall lapse upon such expiry.
+Primary
+Exercise price per option of Sun Pharma shall be 1.25 times the exercise price
+for every Ranbaxy Option.
+Closing price of the Equity Shares of erstwhile Ranbaxy Laboratories Limited
+("Ranbaxy") prior to the date of meeting of the Compensation Committee in
+which stock options were granted, on the stock exchange on which the shares
+of erstwhile Ranbaxy were listed. If the shares were listed on more than one
+stock exchange, then the stock exchange where there was highest trading
+volume on the said date was considered.
+(g) Variation in terms of options
+Source of shares (primary,
+secondary or combination)
+(f)
+(e) Maximum term of options granted
+(d) Exercise price or pricing formula
+20%
+20%
+20%
+20%
+End of 24 months
+End of 36 months
+Percentage of options that shall vest
+End of 48 months
+End of 60 months
+1.
+FINANCIAL STATEMENTS
+85-206
+10. Number of options exercisable at the end of the year
+*Pursuant to Scheme of merger of erstwhile Ranbaxy with Sun Pharma, for every stock option held by an eligible employee of erstwhile
+Ranbaxy became eligible for 0.80 equity share of 1/- each and any fraction thereof rounded off to the next higher whole number under
+ESOS Scheme of Sun Pharma.
+2.
+(i) SUN Employee Stock Option Plan-2015 (which was earlier Ranbaxy Employee Stock Option Plan-2011
+(Granted from the year 2011 onwards) of erstwhile Ranbaxy) (through Trust route):
+Sr.
+Particulars
+No.
+(a)
+Date of shareholders' approval
+(b) Total number of options
+approved under ESOS
+(c) Vesting requirements
+SUN Employee Stock Option Plan-2015
+Adopted pursuant to the Scheme of Merger as approved by the Shareholders of the
+Company on 22nd August, 2014 (High Court Convened meeting) and High Courts.
+3,00,000 (Three lacs) stock options
+(Being the balance options of erstwhile Ranbaxy, for which Sun Pharma has
+obtained in-principle approval from the Stock Exchanges)
+B
+(d) Exercise price or pricing formula
+Particulars
+S.
+(ii) Option movement during the year under SUN Employee Stock Option Plan-2015 [which was earlier
+Ranbaxy Employee Stock Option Plan-2011 (Granted from the year 2011 onwards of erstwhile
+Ranbaxy)]:
+N.A.
+Primary
+Options granted would vest not less than one year and not more than three years
+from the date of grant of such options.
+B
+Exercise price per option is ₹6.25/- pursuant to the Scheme of Merger of Ranbaxy
+with Sun Pharma.
+(g) Variation in terms of options
+secondary or combination)
+Source of shares (primary,
+granted
+(f)
+(e) Maximum term of options
+Options granted would vest not less than one year and not more than three
+years from the date of grant of such options. The vesting will start at the first
+anniversary of grant.
+610,739
+610,739
+Number of options outstanding at the end of the year
+234567
+1,169,586
+Total number of options outstanding (all the options vested)
+41*
+Add: No. of options on account of rounding off the fraction to the next higher whole number as
+per the merger Scheme
+1,169,545*
+2.
+Number of options - post-merger of erstwhile Ranbaxy with Sun Pharma
+No.
+Nos.
+Particulars
+Sr.
+A (ii) Option movement during the year under SUN Employee Stock Option Scheme-2015 [which was earlier
+Employees Stock Option Schemes (Granted prior to year 2011 of erstwhile Ranbaxy)]:
+Annexure - F
+End of 12 months
+STATUTORY REPORTS
+06 - 84
+Number of options granted during the year
+3.
+9.
+N.A.
+8. Loan repaid by the Trust during the year from exercise price received
+232,395,811.25
+Money realized by exercise of options (INR), if scheme is implemented directly by the Company
+7.
+Nil
+447,825
+447,825
+Number of options exercised during the year
+Nil
+4. Number of options vested during the year
+111,022
+Number of options forfeited and lapsed during the year
+Number of shares arising as a result of exercise of options during the year
+date of grant of options
+(a) Date of shareholders' approval
+Vesting period shall commence on the expiry of one year from the date of
+grant of options and the entitlement of an employee will be in the following
+graduated scale:
+TECHNOLOGY ABSORPTION
+Maintain Power Factor near to unity & reduced
+contract demand.
+Installation of energy efficient pump instead of
+conventional pumps.
+>
+>
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+A. Research and Development
+― ANNUAL REPORT 2015-16
+SUN
+― 61
+Use of wind Power instead of DG power.
+>
+Opt TOD base Electricity bill option to get benefit
+in electricity bill.
+Electricity usages are reduced by confined control
+on lightings.
+PHARMA
+>
+1.
+We continue to make fairly large investments for
+generic-related pharmaceutical research and
+technology. Additionally, patient friendly formulations
+which offer increased convenience to patients, like auto
+injectors for existing molecules are being pursued for
+getting regulatory approval. This research supports our
+generic business across all the markets we are present
+in, and ensures we have a healthy pipeline for future
+growth.
+development, equipment and infrastructure to
+compete effectively across world markets. Our
+We continue to invest in people, capability
+Future plan of action
+The Department of Scientific and Industrial Research,
+Ministry of Science and Technology of Government
+of India has granted approval to the in house research
+and development facility of your Company under the
+provision of the Income Tax Act, 1961.
+During the year, the Company has filled 37 Drug Master
+Files across various countries.
+Benefits derived as a result of the above R&D
+In 2015-16, 48 formulations were developed for the
+Indian/International market. All of these were based
+on technology developed in-house. Technology for 9
+APIs was commercialised. For some of the important
+APIs that we already manufacture, processes were
+streamlined or altered so as to have more energy
+efficient or cost effective or environment friendly
+processes. Non-infringing processes were developed
+to gain early market entry in many regulated markets.
+A large part of our external API sales is to the regulated
+markets of US / Europe, and earns valuable foreign
+exchange, as also a reputation for quality and
+dependability. The Company's formulation brands are
+exported to over 150 international markets. In addition,
+our subsidiary Taro's formulation development
+capability supports the filing and scale up of ANDAs for
+the US and other markets where it is present.
+Specific areas in which R&D is carried out by the
+Company
+The API process development is focused for
+developing and transferring commercially viable,
+non-infringing and patentable novel API technologies.
+The development grid selection for APIs is based on
+the difficult-to-make API molecules and also novel
+polymorphic forms of certain APIs for creating value
+addition. Newer areas of interest include developing
+differentiated particles size for APIs as per the
+requirement.
+Annexure - E
+3.
+2.
+The team also works on products that are based on
+complex drug delivery systems. Complex products
+like steroids, sex hormones, peptides, carbohydrates
+immunosuppressant, carbapenems, taxanes
+anticancer, antidiabetic, cardiovascular and antivirals,
+which require special skills and technology are
+developed and scaled up for both API and dosage
+Projects in formulation development and process
+chemistry help us introduce a large number of new
+and novel products to the Indian and rest of the world
+markets that includes differentiated products with high
+technology barriers that limits competition and thus
+helps counter price erosion. Expertise in medicinal/
+process chemistry equips us to be integrated right up
+to the API stage, for important products, advanced
+intermediates or products where the API is difficult to
+source. Strong new product development capability is
+an important part of our strategy, and R&D expertise
+helps us maintain our leadership position in the Indian
+and global markets with niche formulations.
+At our modern R&D centres, expert scientist teams are
+engaged in complex developmental research projects
+in process chemistry and dosage forms, including
+complex generics based on drug delivery systems.
+This work across formulations and API supports the
+short, medium and long term business needs of the
+Company, in India and world markets.
+forms. This complete integration for some products
+helps to deliver advanced products to the market faster
+at competitive pricing. These projects may offer higher
+value addition and revenues.
+>
+Use of Solar Water heater system for boiler feed
+water.
+Use of energy efficient Screw chillier instead of
+Reciprocating chillier.
+12,216.7
+278.0
+22.8
+Average Rate (/Unit)
+Total Amount (in Millions)
+Quantity (in '000 Kgs)
+Wood / Briquitte
+4.
+7,928.3
+Average Rate (/Unit)
+Gas Units (in '000 M3)
+Gas (for Steam)
+3.
+Total Amount (in Millions)
+Average Rate
+Quantity (in '000 Litres)
+Furnace Oil
+Total Amount (in Millions)
+319.6
+40.3
+15,203.7
+511.9
+33.7
+>
+>
+Lightings load reduction by utilising servo
+stabiliser & installation of LED lightings.
+Improve boiler system efficiency by improving
+condensate recovery, installation condensate
+recovery units & by recovering flash steam.
+Optimised compressed air requirement by
+installation dedicated compressor with low
+pressure delivery & by arresting compressed air
+leakages.
+>
+Fuel Cost reduction by fuel switch over cheaper
+fuel like Gas to FO.
+>
+>
+C. ENERGY CONSERVATION MEASURES
+Reduce electricity cost by employing Open access
+power purchase.
+B. CONSUMPTION PER UNIT OF PRODUCTION
+It is not feasible to maintain product category-wise
+energy consumption data, since we manufacture a
+large range of formulations and bulk drugs having
+different energy requirements.
+37,237.3
+180.5
+4.8
+40,973.1
+201.3
+4.9
+692.0
+40.5
+17,091.4
+subsidiary Taro is likely to continue to invest in R&D as it
+ramps up its product pipeline.
+62
+CORPORATE OVERVIEW
+02 - 05
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+63
+25,563.6
+48,705.5
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+21,582.6
+31st March, 2016 31st March, 2015
+2. Outgo
+1. Earnings
+Year ended
+(in Million)
+Year ended
+42,171.0
+Annexure-F
+EMPLOYEES' STOCK OPTION SCHEMES (ESOS)
+Information regarding SUN Employee Stock Option Scheme and Plan (As on March 31, 2016)
+"Vesting" means the process by which the employee is given the right to apply
+for Equity Shares of the Company against the options granted.
+(Being the balance options of erstwhile Ranbaxy, for which Sun Pharma
+hasobtained in-principle approval from the Stock Exchanges)
+12,00,000 (Twelve lacs) stock options
+Adopted pursuant to the Scheme of Merger as approved by the Shareholders
+of the Company on 22nd August, 2014 (High Court Convened meeting) and
+High Courts.
+SUN Employee Stock Option Scheme-2015
+(c) Vesting requirements
+(b) Total number of options approved
+under ESOS
+No.
+Particulars
+No.
+Sr.
+64-
+A (i) SUN Employee Stock Option Scheme - 2015 [which was earlier Employees Stock Option Schemes
+(Granted prior to year 2011 of erstwhile Ranbaxy) (Through Direct Allotment Route)]:
+Erstwhile Ranbaxy Laboratories Limited ("Ranbaxy") has been merged into Sun Pharmaceutical Industries Limited
+("Sun Pharma") effective 24th March, 2015 through a Scheme of Merger as approved by the Hon'ble High Court of
+Punjab & Haryana and Hon'ble High Court of Gujarat. Pursuant to the Scheme of Merger, Employee Stock Option
+Schemes and Plan of erstwhile Ranbaxy have been adopted by Sun Pharma with suitable modifications w.e.f. 24th
+March, 2015 and formulated SUN Employee Stock Option Scheme-2015 and SUN Employee Stock Option Plan-
+2015. These Schemes are applicable only to the employees of erstwhile Ranbaxy and its subsidiaries, and would
+continue till the time of expiry/exercise of all the earlier granted stock options. No further options would be granted
+by the Company under these Scheme and Plan.
+A.
+C. Foreign Exchange Earnings and Outgo
+Period of service from the
+3. Your company has not imported technology during
+the last 5 years reckoned from the beginning of the
+financial year.
+(e) The Company has benefited from reduction in
+cost due to import substitution and increased
+revenue through higher exports.
+9,037.9
+789.4
+543.7
+31st March, 2016 31st March, 2015
+(in Million)
+Year ended
+Year ended
+8,302.9
+b) Revenue
+1.
+Expenditure on R&D
+4.
+Annexure - E
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+a) Capital
+c) Total
+9,581.6
+9,092.3
+(d) We are among the few selected companies
+that have set up completely integrated
+manufacturing capability for the production of
+anticancer, hormones, peptide, cephalosporins,
+immunosuppressant and steroidal drugs.
+(c) Offer technologically advanced differentiated
+products which are convenient and safe for
+administration to patients.
+(b) Not dependent on imported technology, can make
+high cost products available at competitive prices
+by using indigenously developed manufacturing
+processes and formulation technologies.
+(a) Market leader for several complex products. Offers
+complete baskets of products under specialty
+therapeutic classes. Strong pipeline of products
+for future introduction in India, emerging markets,
+as well as US and European generic market. Ability
+to challenge patents in the US market, and earn
+exclusivity.
+Benefits derived as a result of the above efforts
+e.g. product improvement, cost reduction, product
+development, import substitution
+2.
+Process robustness has been implemented for wide
+range of products which has resulted in positive
+outcomes with respect to cost and increase in process
+capability.
+There has been thrust on the development of novel
+technologies like use of green reagents for chemical
+transformations in API synthesis and ultrasonic
+crystallisation for achieving required particle size,
+Capillary flow reactors for continuous process, Safety
+related studies using reaction calorimetry. Product
+Life cycle management has been undertaken for
+key products. Backward integration is a key strategic
+objective and many of our products enjoy the benefit of
+this backward integration.
+Year after year, Company continues to invest on
+R&D, both as revenue expenses as well as capital
+expenditure. A large part of the spending is for
+complex products, ANDA filings for the US, and
+API technologies that are complex and may require
+dedicated manufacturing blocks. Investments have
+been made in creating research sites, employing
+scientifically skilled and experienced manpower, adding
+equipment, sponsored research and in accessing world
+class consultants to continuously upgrade the research
+understanding of the scientific team in the technologies
+and therapy areas of our interest.
+B. Technology Absorption, Adaptation and Innovation
+Efforts in brief, made towards technology
+absorption, adaptation and innovation
+Total Turnover
+expenditure as % of
+11.8%
+12.4%
+d) Total R&D
+(f) Clinical studies of important products (complex
+and difficult to formulate) have been carried out
+at our in-house clinical pharmacology units. This
+has helped to maintain R&D quality and regulatory
+compliance with significantly reduced cost.
+1.
+1,401,258.75
+Add: No of options of overseas employees not included in above
+Weighted average
+Fair value (in)
+Closing market price at NSE on
+the previous day of the grant
+Term of Option
+01.07.2011
+5.00
+1.25 years
+21.01.2012
+5.00
+534.36
+1.25 years
+2.25 years
+532.74
+3.25 years
+(in )
+[All details given below pertain to Erstwhile Ranbaxy]
+541.35
+22.02.2012
+5.00
+464.49
+1.25 years
+2.25 years
+462.86
+3.25 years
+468.35
+461.20
+441.92
+2.25 years
+440.29
+3.25 years
+449.20
+438.63
+531.09
+20.01.2013
+Weighted average
+exercise price (in *)
+449.60
+317.45
+496.00
+212.50
+503.10
+538.50
+215.68
+534.33
+392.00
+194.07
+430.00
+232.57
+429.65
+Stock options granted on
+391.00
+390.75
+561.00
+172.89
+560.75
+219.00
+63.31
+218.60
+216.00
+92.97
+215.15
+450.00
+218.64
+107.06
+132.50
+5.00
+25.02.2013
+Composition and category of Directors is as follows:
+Category of Directors
+Non-Promoter
+Non-Executive and
+Non - Independent Director
+Promoter
+Executive Director
+Non-Promoter Executive Directors
+Non-Executive Independent Directors
+leading to sharply focused and operationally efficient
+growth. The Company tries to work by these principles
+in all its interactions with stakeholders, including
+shareholders, employees, customers, suppliers and
+statutory authorities.
+Sun Pharmaceutical Industries Limited is committed
+to learn and adopt the best practices of Corporate
+Governance.
+2. BOARD OF DIRECTORS
+The present strength of the Board of Directors of your
+Company is nine Directors.
+Sun Pharmaceutical Industries Limited's philosophy on
+Corporate Governance envisages working towards high
+levels of transparency, accountability, consistent value
+systems, delegation across all facets of its operations
+Name of the Directors
+Mr. Dilip S. Shanghvi
+(Managing Director)
+Mr. Sudhir V. Valia
+(Whole-time Director)
+Mr. Sailesh T. Desai
+(Whole-time Director)
+Mr. S. Mohanchand Dadha
+Mr. Hasmukh S. Shah
+Mr. Keki M. Mistry
+Mr. Ashwin S. Dani
+Ms. Rekha Sethi
+Inter-se Relationship between Directors
+Brother-in-law of Mr. Sudhir V. Valia
+Brother-in-law of Mr. Dilip S. Shanghvi
+Number of Board Meetings held during the year ended 31st March, 2016 and the dates on which held:
+Five Board meetings were held during the year. The dates on which the meetings were held during the year ended
+31st March, 2016 are as follows:
+29th May, 2015, 11th August, 2015, 31st October, 2015, 7th November, 2015 and 12th February, 2016.
+68
+-
+Mr. Israel Makov (Chairman)
+1.25 years
+1. COMPANY'S PHILOSOPHY ON CODE OF
+CORPORATE GOVERNANCE
+CORPORATE
+GOVERNANCE
+5.00
+08.05.2014
+5.00
+2.25 years
+473.47
+2.25 years
+425.19
+2.25 years
+460.79
+3.25 years
+482.15
+471.81
+3.25 years
+413.55
+423.53
+3.25 years
+472.15
+In compliance with Regulation 34(3) read with schedule
+V of the Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015 ("Listing Regulations, 2015"), the Company submits
+the Corporate Governance Report for the year ended 31st
+March, 2016.
+475.12
+1.25 years
+426.83
+1.25 years
+462.39
+VI. A description of the method and significant assumptions used during the year to estimate the fair value of options
+including the following information:
+(a) the weighted-average values of share price, exercise price, expected volatility, expected option
+life, expected dividends, the risk-free interest rate and any other inputs to the model;
+(b) the method used and the assumptions made to incorporate the effects of expected early
+exercise;
+(c)
+how expected volatility was determined, including an explanation of the extent to which
+expected volatility was based on historical volatility; and
+(d) whether and how any other features of the option grant were incorporated into the
+measurement of fair value, such as a market condition.
+Since no options were granted
+during the year, hence not
+applicable
+67
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+459.16
+Number of options - post-merger of erstwhile Ranbaxy with Sun Pharma
+283.50
+226.00
+Number of shares arising as a result of exercise of options during the year
+224,201
+Money realized by exercise of options (INR), if scheme is implemented directly by the Company
+Loan repaid by the Trust during the year from exercise price received
+No
+9.
+Number of options outstanding at the end of the year
+169,913
+40,259
+10. Number of options exercisable at the end of the year
+*Pursuant to Scheme of merger of erstwhile Ranbaxy with Sun Pharma, for every stock option held by an eligible employee of erstwhile
+Ranbaxy became eligible for 0.80 equity share of ₹1/- each and any fraction thereof rounded off to the next higher whole number under
+ESOP Plan of Sun Pharma.
+Voting rights of shares held by Sun Pharma ESOP Trust
+224,201
+(a) The name of the employees who have not
+exercised the voting rights directly
+The reasons for not voting directly
+(c)
+The name of the person who is exercising such
+voting rights
+(d) The number of shares held by or in favour of such
+employees and the percentage of such shares to
+the total paid-up share capital of the Company
+(e) The date of the general meeting in which such
+voting power was exercised
+(f)
+(g)
+The resolution on which votes have been cast by
+persons holding such voting power
+The percentage of such voting power to the total
+voting power on each resolution
+(h) Whether the votes were cast in favour of or
+against the resolution
+Shares were allotted to the Sun Pharma ESOP Trust. The
+employees holding stock options had no voting right till the
+allocation of shares to them on exercise of stock options.
+Stock Options granted to the employees were not exercised.
+Hence shares were not held by the employees.
+No one attended the AGM on behalf of Sun Pharma ESOP Trust
+or voted thereat
+70,332 Equity Shares of 1 each of the Company were held by
+Sun Pharma ESOP Trust, constituting 0.0029% of the total paid-
+up share capital of the Company.
+(b)
+31st October, 2015
+284,590
+Nos.
+Add: No. of options on account of rounding off the fraction to the next higher whole number as
+per the merger Scheme
+Total number of options outstanding
+2.
+Number of options granted during the year
+Nos.
+449,430*
+4,968
+1,368*
+455,766
+Nil
+65
+SUN
+61,652
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Annexure-F
+5.
+Number of options exercised during the year
+6.
+7.
+8.
+S.
+No.
+Particulars
+3. Number of options forfeited and lapsed during the year
+4. Number of options vested during the year
+13456N∞0'
+― ANNUAL REPORT 2015-16
+449.48
+(Date of AGM of the Company)
+Votes had not been exercised on behalf of the Sun Pharma
+ESOP Trust on any of the resolutions put to vote at the AGM
+0.00%
+Annexure - F
+Stock options granted on
+12.01.2001
+03.12.2001
+01.04.2002
+07.02.2003
+22.01.2004
+17.01.2005
+17.01.2006
+17.01.2007
+16.01.2008
+11.06.2008
+[All details given below pertain to Erstwhile Ranbaxy]
+19.12.2008
+24.02.2010
+Weighted average
+exercise price (in )
+336.50
+145.00
+Weighted average
+Fair value (in)
+Closing market price at
+NSE on the previous day
+of the grant (in)
+324.15
+297.50
+188.50
+369.48
+372.50
+21.01.2009
+At the AGM held on 31st October, 2015 no voting power held by
+Sun Pharma ESOP Trust was exercised.
+V. Weighted-average exercise price and fair value of Stock Options granted: (Post split adjusted price)
+STATUTORY REPORTS
+06 - 84
+Not Applicable
+Employee wise details (name of employee, designation, number of options granted during the year, exercise price) of options granted to -
+Senior Managerial Personnel;
+II.
+(a)
+: Nil
+(b)
+Any other employee who receives a grant in any one year of option
+amounting to 5% or more of option granted during that year; and
+: Nil
+III.
+IV.
+(c) Identified employees who were granted option, during any one year,
+equal to or exceeding 1% of the issued capital (excluding outstanding
+warrants and conversions) of the Company at the time of grant.
+Diluted earnings per share (EPS)
+FINANCIAL STATEMENTS
+85-206
+(a) Method used to account for ESOS - Intrinsic or fair value
+: Nil
+(4.5)
+The Company has calculated the employee compensation
+cost using the Fair value of the stock options
+: N.A.
+: Loss after tax: (10,733.6) Mn
+Less: additional employee compensation cost based
+on fair value (net of tax) : Nil
+Adjusted Loss After Tax: (10,733.6) Mn
+Adjusted EPS(diluted): * (4.5)
+66-
+CORPORATE OVERVIEW
+02 - 05
+(b) Difference between the employee compensation cost so computed
+at (a) above and the employee compensation cost that shall have
+been recognized if it had used the fair value of the options
+(c) The impact of this difference on profits and on EPS of the Company
+12.7
+391.15
+It also improves aesthetics. Keeping these in view for
+socio-ecological benefits company has undertaken
+roadside plantation at Panoli village and also distributed
+2,800 saplings in Madurantakam area with the total cost
+involvement of 0.14 million.
+- 59
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Annexure - D
+people suffered a lot in getting of basic necessities like
+milk, water, vegetables and other essential commodities.
+Recognizing these needs, Sun Pharma had provided
+necessary support, food packets and medical treatments
+to affected families. A total of 1,600 families were provided
+fooding packets and 679 villagers were provided medical
+treatment under this programme costing 0.2 million.
+Community Drinking Water Supply
+During the time of peak summer most of the villages near
+our plant were struggling for getting drinking water, Sun
+Pharma had identified this issue and taken up under CSR
+fund costing 0.07 million, Under this project company had
+provided drinking water facility to 960 households for
+2 months, in Malaipalayam village of Tamilnadu.
+Educational Projects
+Promotion of Education by School Infrastructure
+Development
+To facilitate quality education, we contributed towards up-
+gradation of classroom, schools and also providing proper
+drinking water facilities at rural schools. The programme has
+been implemented at various locations e.g. Halol, Panoli,
+Nagar and Madurantakam by CSR department. The project
+cost was 1.24 million benefitting 3,859 students.
+Environment Conservation Programme
+Tree plantation is one of the effective remedial measures
+to control problems of air pollution and desertification,
+and further to its obvious economic benefits, it effectively
+addresses several important environmental and sustainable
+development objectives.
+Strengthening PDS Systems - Sathammai
+Due to the devastated rainfall in Tamilnadu during the
+month of November - December 2015 most of the
+districts were affected, especially Chennai, Kanchipuram
+and Thiruvalluvar districts are the worse. Because of this
+unexpected rainfall these three districts are flooded and
+Implemented by the CSR Department of Sun Pharma, the
+aim of this programme is two-pronged:
+To provide good infrastructure facility to keep the
+essential commodities safe and secure
+To facilitate the local governing body in distributing the
+material on time by providing required infrastructure
+facilities
+Construction of the 'Public Distribution Centre' has
+commenced in Sathammnai village of Madurantakam from
+1st February 2015 and was completed in 31st May 2015.
+The total expenses during FY 2015-16 was 0.38 million. It
+benefitted 250 households of the village.
+Other Project
+Promotion of tourism & protecting national heritage
+In order to create awareness about importance of rural
+tourism sites of Halol block, District Administration,
+Panchmahals has started annual tourism promotion
+programme, i.e. Panchmohatsav, from the year 2015 so as
+to promote local art and culture ultimately promoting rural
+tourism for economic enhancement of the area. There were
+more than 5000 people benefitted out of this program with
+cost involvement of 0.02 million.
+Development of Cancer Treatment Hospital
+Keeping in view of non-availability of Comprehensive
+Cancer Care Centre and Research Institute in Central
+India and increasing number of Cancer patients in all
+demography, Sun Pharma has supported the development
+of National Cancer Institute at Nagpur, Maharashtra with
+the help of Dr. Abaji Thatte Seva Aur Anusandhan Sansthan,
+Nagpur.
+This all with the objective to provide comprehensive cancer
+treatment, patient care and research through world class
+oncology care and referral center under sustainable charity
+project schemes. Under this project, the hospital would be
+providing patient-friendly treatment facility, ultra-modern
+diagnostics and high-tech and specialized operation theatre
+facilities to meet different needs of the medical, patient and
+career community of oncology,
+Other than these the National Cancer Institute would have
+Linear Accelerators for the Radio Therapy Treatment,
+Nuclear Medicine Department - Diagnostic & Therapeutic,
+a dedicated ward for pediatric & neonatal cancer patients,
+Bone Marrow / Stem Cell Transplant unit, ICUs - MICU, ISCU,
+PICU Units, Ambulatory Surgery & Daycare Chemotherapy
+Units, Dedicated pharmacy for drugs at subsidized
+cost, Social workers and counsellors for help & support,
+Education and information to patients so as to involve them
+actively in healthcare.
+The project was supported with the total cost involvement
+of 80 million during 2015-16.
+60
+-
+CONSERVATION OF ENERGY
+CORPORATE OVERVIEW
+02 - 05
+>
+STATUTORY REPORTS
+06 - 84
+Disaster Relief Programme
+To conduct intensive Information, Education and
+Communication (IEC) campaign about sanitation with the
+involvement of PRIs, Co-operatives, ASHAs, Anganwadi
+workers, Women Groups, Self Help Groups, NGOs etc.
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85 - 206
+Annexure - D
+CSR ACTIVITIES
+Sun Pharma has undertaken various CSR Projects
+during 2015-16 across locations in India for sustainable
+development of communities. Our main objective is to
+emphasize on quality and ensuring the sustainability,
+hence our implementation approach is strategic in nature,
+is more inclined towards the sustainability of the projects,
+addressing community needs, focussing poorest of
+the poor, downtrodden, and disadvantaged, BPL and
+weaker sections of society. Company follows a systematic
+approach by taking-up community needs assessment
+(CNA) study at all locations. Based on the survey results
+and recommendation, corporate social responsibility
+interventions were prioritized and strategy has been
+worked-out. The projects implemented by Sun Pharma were
+highly sustainable in nature and contributing towards the
+social development of the people.
+At Sun Pharma, our social responsibility programmes mainly
+focussed upon Health, Education, Drinking water and Rural
+Development Projects are designed to improve the quality
+of life of the people as well as contribute towards a strong
+economy.
+All our CSR efforts stem from our well-articulated CSR
+Policy which has been posted in public domain.
+A wide gamut of our CSR efforts are aimed towards the
+'bottom-of-the-pyramid', socio-economically marginalised
+and opportunity-challenged section of the society.
+Health Projects
+Mobile Medical Unit Programme
+Mobile Medical Unit (MMU) is a primary healthcare
+project that provides free doorstep health facilities for
+the marginalised and financially backward section of the
+society. A full-time dedicated health van, visits the target
+areas at a regular frequency. It is manned by a dedicated
+team of qualified experienced doctor, pharmacist and
+special protection officer, who provide medical check-ups,
+medicines, expert counselling and referral services for free.
+The projects were implemented by the Sun Pharma
+Community Healthcare Society and HelpAge-India, the main
+objective of the project is
+>
+The project cost was 2.88 million and it benefited 283
+households of Ahmednagar, Panoli and Madurantakam and
+Halol Taluka.
+Reduction of infant and maternal mortality rate
+>
+>
+Prevention & control of communicable diseases (with a
+focus on malaria, tuberculosis) and non-communicable
+/ other prevalent diseases
+Promote awareness on HIV/AIDS
+In 2015-16, 31.5 million was contributed towards the
+program covering more than 60 villages across the following
+locations - Halol in Gujarat, Nagar in Maharashtra, Mohali,
+Toansa in Punjab, Paonta Sahib in Himachal Pradesh, Dewas
+in Madhya Pradesh. The total numbers of patients treated
+were 228,788. In addition to this 2.37 lac people were also
+educated on various health awareness under Preventive and
+Promotive Healthcare.
+Maatra Shishu Swasthya Sewa
+A joint CSR initiative between our Company and Daiichi
+Sankyo, the programme aims to reduce both the Maternal
+Mortality Rate and Infant Mortality Rate by 50% in 5 years.
+Flagged off in November 2011, this financial year saw
+an amount of 5.1 million being spent in 82 villages of
+Vijayganj Mandi & Sunwani Gopal (Dist. Dewas, Madhya
+Pradesh) benefiting 29,860 persons.
+Sanitation Project
+In order to align with the national objective of "Sanitation for
+All by 2019" and to change the socio economic situation of
+communities, the company has decided to make villages
+free from open defecation practices, Sun Pharma has
+undertaken projects for construction of individual toilets.
+Sun Pharma has created critical awareness about sanitation
+schemes, best hygienic practices in 7 villages near to their
+Ahmednagar, Panoli and Madurantakam and Halol plant to
+build up their interest towards sanitation
+Implemented by the CSR Department and Implementing
+agency GVT-Dahod, the aim of this programme was two-
+pronged:
+>
+To construct toilets for the community and thereby
+provide 100% coverage in villages.
+> Improve health of adolescent girls
+CORPORATE OVERVIEW
+FINANCIAL STATEMENTS
+85 - 206
+POWER AND FUEL CONSUMPTION
+A.
+16,695.7
+3.4
+3,277.6
+3.7
+10.0
+Own Generation through Gas
+3.4
+16.5
+3.4
+14.1
+Cost (/Unit)
+per M3 of Gas
+Units (in '000 KWH)
+Units
+(c)
+Units per Litre of Diesel Oil
+8,102.4
+6,075.1
+Units (in '000 KWH)
+Cost (*/Unit)
+6.8
+1.
+(b) Own Generation through Diesel Generator
+(a)
+Purchased
+Unit (in '000 KWH)
+Annexure - E
+2015-16
+2014-15
+Electricity
+251,624.2
+Total Amount (in Millions)
+Rate (*/Unit)
+2,037.7
+6.9
+1,713.1
+296,933.7
+Mr. Dilip Shanghvi
+Directors
+The details of Remuneration paid/payable to the Directors of the Company for the year ended 31st March, 2016 are
+given below:-
+The Non-Executive Directors of the Company are entitled to commission, if and to the extent approved by the Board, of
+1% as approved by the members, in addition to the sitting fees of 100,000/- payable to the Non-Executive Directors
+for attending each meeting of the Board and/or of Committee thereof. During the year, the sitting fees was increased
+from 50,000 to 1,00,000 with effect from 1st April, 2015. No commission was paid to Non-Executive Directors for
+the year 2015-16.
+The Managing Director and Whole-time Director(s) remuneration is approved by the Board, as per recommendation of
+the Nomination and Remuneration Committee within the overall limit fixed by the shareholders at their meetings.
+6. REMUNERATION OF DIRECTORS
+Members on recommendation of Nomination and Remuneration Committee and the Board of Directors.
+Board of Directors on recommendation of the Nomination and Remuneration Committee
+Human Resources Head
+Entitlement: The authority to determine the entitlement to various components as aforesaid for each class and
+designation of personnel shall be as follows:
+Key Managerial Personnel
+Other employees
+Designation / Class
+Director
+commission if approved by the shareholders. The
+shareholders may authorise the Board to declare
+commission to be paid to any director of the Board.
+Commission: The directors may be paid
+Gratuity/group insurance: Personnel may also
+be awarded to group insurance and other key
+man insurance protection. Further as required
+by the law necessary gratuity shall be paid to the
+personnel.
+f.
+To be determined by
+Mr. Sudhir Valia
+2,717,373
+Mr. Israel Makov
+20,378,813
+NIL
+17,661,440
+Total Paid
+Bonus Perquisites** / Benefits
+Salary*
+(Amount in )
+Actual Remuneration/Sitting Fees Paid/Provided for 2015-16
+Sitting Fees
+Salary includes Special Allowance.
+*
+Ms. Rekha Sethi
+Mr. Ashwin S. Dani
+Mr. Keki M. Mistry
+Mr. Hasmukh S. Shah
+Mr. S. Mohanchand Dadha
+Mr. Sailesh Desai
+17,988,504
+5. Approval by members of the Company
+accorded for remuneration paid to Mr. Sudhir
+V. Valia, Whole-time Director (DIN: 00005561)
+of the Company for the financial year 2013-
+14 which is in excess of the limits prescribed
+under Schedule XIII of the Companies Act,
+1956 in view of the absence of profits for
+financial year 2013-14.
+e.
+722.00
+824.50
+December, 2015
+704.00
+878.15
+706.40
+826.00
+877.50
+873.25
+933.95
+875.00
+933.70
+October, 2015
+815.00
+November, 2015
+721.50
+January, 2016
+880.00
+8,576,964
+(Source: BSE and NSE website)
+770.00
+877.10
+770.80
+876.00
+March, 2016
+802.45
+898.45
+803.55
+898.00
+February, 2016
+764.00
+878.00
+762.45
+NIL
+920.80
+Non-monetary benefits: Senior management
+personnel of the Company may, on a case to
+case basis, be awarded customary non-monetary
+benefits such as discounted salary advance/
+credit facility, rent free accommodation, Company
+cars with or without chauffer's, share and share
+price related incentive, reimbursement of
+electricity and telephone bills etc.
+C.
+Yes
+55
+Mr. Dilip S. Shanghvi
+Mr. Israel Makov
+Other
+Directorships
+Committee
+Chairmanships**
+Committee
+Memberships**
+*No. of other Directorships and Committee
+Memberships / Chairmanships as of 31st March, 2016
+Attendance Particulars for the year
+Attendance of each Director at the Board meetings, last Annual General Meeting (AGM), and number of other
+Directorships and Chairmanships/Memberships of Committee of each Director, is given below:
+Last AGM held on
+31st October, 2015
+Board Meetings
+ended 31st March, 2016
+Name of the Director
+FINANCIAL STATEMENTS
+85-206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+Yes
+1
+Mr. Sudhir V. Valia
+4
+1
+Yes
+5
+Mr. Hasmukh S. Shah
+1
+1
+3
+Yes
+CORPORATE OVERVIEW
+5
+-
+1
+Yes
+5
+Mr. Sailesh T. Desai
+2
+2
+Yes
+Mr. S. Mohanchand Dadha
+1.21
+2.04
+3.42
+1.21
+Board and the Members. The Company has received
+letter dated 3rd November, 2015 from the Central
+Government approving only 60 lakhs per annum each
+for Managing Director and Whole-time Directors for
+three years from 1st April, 2014 to 31st March, 2017.
+However, pursuant to Schedule V of the Companies
+Act 2013, in case of inadequate profits, based on
+the calculation of effective capital of our Company,
+The Company had made an application to the Central
+Government for approval of remuneration of Managing
+Director and Whole-time Directors, as approved by the
+Besides this, all the Whole-time Directors are also
+entitled to encashment of leave as per Company policy,
+and gratuity at the end of tenure, as per the rules of the
+Company.
+** Perquisites include House Rent Allowance, Leave Travel Assistance, Medical Reimbursement, contribution to Provident Fund and such other
+perquisites, payable to Directors.
+1,100,000
+1,100,000
+800,000
+800,000
+― 71
+1,100,000
+1,900,000
+1,900,000
+1,600,000
+900,000
+900,000
+1,600,000
+12,083,454
+1,791,097
+1,715,393
+1,100,000
+-
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Mr. Sailesh Desai
+4.62
+4.62
+p.a. as approved by
+Board and Members,
+subject to approval of
+the Central Govt., for
+the current tenure of
+appointment*
+Maximum Remuneration
+* in Crores
+1.11
+1.83
+PHARMA
+1.83
+the Wholetime Directors are entitled, the remuneration
+actually paid to them and the maximum limit of the
+remuneration as approved by the members are
+explained below:
+entitled for
+the year 2015-
+2016 (including
+contribution to PF)
+2.04
+Actual Amount
+paid/provided,
+out of the amount
+Amount of remuneration
+(including contribution to
+PF) entitled for the year
+2015-2016, as approved
+by the Board within the
+limit as approved by the
+members
+3.42
+Mr. Sudhir Valia
+Mr. Dilip Shanghvi**
+Directors
+the Managing Director and Whole-time Directors are
+eligible for remuneration upto ₹ 1.84 crores per annum,
+each without approval of the Central Government. The
+details of remuneration that the Managing Director and
+Amount of Remuneration paid
+for 2015-2016, after excluding
+Contribution to PF which is
+excluded for calculation of
+limit as per Schedule V of the
+Companies Act 2013
+d.
+1
+4
+4
+3
+Meetings attended
+No. of Nomination
+and Remuneration
+Committee
+3
+Member
+Mr. Ashwin S. Dani
+Member
+Ms. Rekha Sethi
+4
+Member
+Mr. Hasmukh S. Shah
+Member
+Mr. Israel Makov
+4
+Member
+Mr. S. Mohanchand Dadha
+4
+2,454,379
+5. NOMINATION AND REMUNERATION
+COMMITTEE
+The Nomination and Remuneration Committee
+presently comprises of three Directors viz. Mr. Keki
+Mistry, Mr. Israel Makov and Ms. Rekha Sethi. Mr. Keki
+M. Mistry is the Chairman of the Committee. The
+constitution of the Nomination and Remuneration
+Committee meets with the requirements of Section 178
+of the Companies Act, 2013 as also the requirements
+laid down in Regulation 19 of the Listing Regulations,
+2015. Mr. Sunil R. Ajmera, the Company Secretary of
+the Company is the Secretary of the Committee.
+FINANCIAL STATEMENTS
+85-206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+-
+70
+Share based payments: The Board may, on
+the recommendation of the Nomination and
+Remuneration Committee, issue to certain class of
+personnel a share and share price related incentive
+program.
+Variable compensation: The personnel of the
+Company may be paid remuneration by way of
+variable salaries based on their performance
+evaluation. Such variable salaries should be based
+on the performance of the individual against his
+short and long term performance objectives and
+the performance of the Company.
+Chairman
+Fixed compensation: The fixed salaries of the
+Company's personnel shall be competitive and
+based on the individual personnel's responsibilities
+and performance.
+b.
+a.
+B. Components of Remuneration: The following will be
+the various remuneration components which may be
+paid to the personnel of the Company based on the
+designation and class of the personnel.
+A. Guiding Principles for remuneration: The Company
+shall remunerate all its personnel reasonably and
+sufficiently as per industry benchmarks and standards.
+The remuneration shall be commensurate to retain and
+motivate the human resources of the Company. The
+compensation package will, inter alia, take into account
+the experience of the personnel, the knowledge and
+skill required including complexity of the job, work
+duration and risks associated with the work, and
+attitude of the worker like positive outlook, team work,
+loyalty etc.
+The key highlights of the Remuneration Policy for
+Directors, Key Managerial Personnel and other
+employees of the Company which has been approved
+by the Nomination and Remuneration Committee and
+the Board of Directors are as follows:
+Four Nomination and Remuneration Committee
+Meetings were held during the year ended 31st March
+2016. The dates on which the meetings were held are
+as follows:
+Further details on evaluation of performance of the
+Board, its Committees and Individual Directors, is
+provided in the Board's Report.
+The terms of reference of the Nomination and
+Remuneration Committee inter alia include; to
+determine the Company's policy on specific
+remuneration packages for executive directors, to
+review, recommend and/or approve remuneration
+to Whole-time Directors, to review and approve the
+Remuneration Policy of the Company, to formulate
+criteria for evaluation of Independent Directors and
+the Board, to devise a policy on Board Diversity, to
+identify persons who are qualified to become directors
+and who may be appointed in senior management in
+accordance with the criteria laid down and recommend
+to the Board the appointment or removal of such
+persons and to discharge such other functions and
+exercise such other powers as may be delegated/
+directed by the Board of Directors from time to time.
+C.
+Mr. Keki M. Mistry
+3
+Chairman
+4. AUDIT COMMITTEE
+The Board of Directors has laid down a Code of
+Conduct for all Board members, and all employees,
+including the senior management of the Company. All
+the Directors and senior management have affirmed
+compliance with the Code of Conduct as approved and
+adopted by the Board of Directors and a declaration to
+this effect signed by the Managing Director has been
+annexed to the Corporate Governance Report. The
+code of conduct has been posted on the website of the
+Company www.sunpharma.com.
+3. CODE OF CONDUCT
+** The Committee Memberships and Chairmanships in other Companies include Memberships and Chairmanships of Audit and Stakeholders'
+Relationship Committee only.
+* The above list of other directorships does not include Directorships, Committee Memberships and Committee Chairmanships in Private
+Limited, Foreign and Section 8 Companies.
+1
+1
+2
+The Audit Committee of the Company presently
+comprises of four independent non-executive Directors
+viz. Mr. Keki M. Mistry, Mr. S. Mohanchand Dadha,
+Mr. Ashwin S. Dani and Mr. Hasmukh S. Shah.
+Mr. Keki M. Mistry is the Chairman of the Committee.
+The constitution of Audit Committee meets with the
+requirements as laid down under Section 177 of the
+Companies Act, 2013 and also of Regulation 18 of
+the Listing Regulations, 2015. Mr. Sunil R. Ajmera, the
+Company Secretary of the Company is the Secretary of
+the Audit Committee.
+5
+2
+Yes
+5
+Ms. Rekha Sethi
+Yes
+4
+Mr. Ashwin S. Dani
+9
+Yes
+6
+2
+Mr. Keki M. Mistry
+The terms of reference of the Audit Committee inter
+alia include: overseeing the Company's financial
+reporting process, reviewing the quarterly/half-
+yearly/annual financial statements, reviewing with the
+management the financial statements and adequacy of
+internal audit function, management letters issued by
+the statutory auditor, recommending the appointment/
+The Committee acts as a link between the
+management, external and internal auditors and the
+Board of Directors of the Company.
+Mr. Keki M. Mistry
+attended
+Chairman/
+Member of the
+Committee
+Chairman/
+Member of the
+Committee
+Name of the
+Director
+29th May, 2015, 11th August, 2015, 7th November,
+2015 and 12th February, 2016. The attendance of
+each Member of the Committee is given below:
+No. of Audit
+Committee
+Meetings
+Name of the Director
+re-appointment of statutory auditors and fixation of
+audit fees, reviewing the significant internal audit
+findings/ related party transactions, reviewing the
+Management Discussion and Analysis of financial
+condition and result of operations, scrutiny of inter-
+corporate loans, review of internal financial control
+and risk management, review functioning of Whistle
+Blower/Vigil Mechanism, approval of appointment of
+CFO, and also statutory compliance issues, etc.
+29th May, 2015, 11th August, 2015, 7th November,
+2015 and 12th February, 2016. The attendance of each
+Member of the Committee is given below:
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+69
+Four Audit Committee Meetings were held during the
+year ended 31st March, 2016. The dates on which the
+Meetings were held are as follows:
+In addition, the Committee has discharged such other
+role/function as envisaged under Regulation 18 of the
+Listing Regulations, 2015 and the provisions of Section
+177 of the Companies Act, 2013.
+The Committee has discussed with the Statutory and
+Internal auditors about their audit methodology, audit
+planning and significant observations/suggestions
+made by them.
+Executives from the Finance Department,
+representatives of the Statutory Auditors and Internal
+Auditors are also invited to attend the Audit Committee
+Meetings, whenever necessary.
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+6. Approval by members of the Company
+accorded for remuneration paid to Mr.
+Sailesh T. Desai, Whole-time Director,
+(DIN:00005543), of the Company for the
+financial year 2013-14 which is in excess
+of the limits prescribed under Schedule XIII
+of the Companies Act, 1956 in view of the
+absence of profits for financial year 2013-14.
+815.30
+September, 2015
+31st March, 2016. The dates on which Meetings
+were held are as follows: 10th April, 2015, 29th April,
+2015, 23rd July, 2015, 31st October, 2015 and 12th
+February 2016. The attendance of each Member of the
+Committee is given below.
+Five meetings of the Committee of Directors'
+(Allotment) were held during the year ended
+8. COMMITTEE OF DIRECTORS (ALLOTMENT)
+The Committee of Directors (Allotment) presently
+comprises of Mr. Dilip Shanghvi, Mr. Sudhir V. Valia,
+Mr. Sailesh T. Desai, Mr. S. Mohanchand Dadha and
+Mr. Hasmukh Shah. Mr. Sudhir Valia is the Chairman
+of the Committee and Mr. Sunil R. Ajmera, Company
+Secretary is the Secretary of the Committee.
+The total numbers of complaints received and resolved
+to the satisfaction of shareholders during the year
+under review, were 11.
+Investor Complaints:
+Dadha
+4
+Member
+Mr. S. Mohanchand
+4
+Member
+Mr. Dilip S. Shanghvi
+4
+Member
+Mr. Sudhir V. Valia
+Chairman
+Mr. Hasmukh S.
+Shah
+Name of the
+Director
+Mr. Sudhir V. Valia
+Mr. Hasmukh Shah
+Mr. Sailesh Desai
+Mr. S. Mohanchand
+Dadha
+Mr. Dilip S. Shanghvi
+Chairman/
+Member of the
+Committee
+The Corporate Social Responsibility Committee
+presently comprises of Mr. Sudhir V. Valia, Ms. Rekha
+Sethi with Mr. Dilip Shanghvi as the Chairman. The
+constitution of the Corporate Social Responsibility
+Committee meets the requirements of section 135
+of the Companies Act, 2013. Mr. Sunil R. Ajmera, the
+Company Secretary of the Company is the Secretary
+of the Committee. The terms of reference of the
+Corporate Social Responsibility Committee include to
+formulate and recommend to the Board, a Corporate
+Social Responsibility Policy, to monitor the Corporate
+Social Responsibility Policy of the company from time
+to time, to recommend the amount of expenditure to
+be incurred on the activities, to monitor amount spent
+on the CSR initiatives of the Company as per the CSR
+policy, to discharge such other functions and exercise
+9. CORPORATE SOCIAL RESPONSIBILITY
+COMMITTEE
+1/- each held in Ranbaxy as on such record date,
+and for issue of Non-Convertible Debentures, if any, to
+decide all matters relating to the issue and allotment
+of equity shares of 1/- each and Non-Convertible
+Debentures, to credit the equity shares/debenture
+holders so allotted through NSDL/CDSL/Other
+depository to the concerned beneficiary account and to
+issue the equity share certificates to the shareholders
+holding the shares in physical form, to perform any or
+all of the acts, deeds, things and matters as may be
+required in connection with such issue, allotment and
+Listing of Equity Shares of ₹1/- each and of debentures
+and to allot shares pursuant to ESOP Schemes, etc.
+The Committee of Directors (Allotment) interalia has the
+following powers: To fix / take note of the record date
+for determining the names of the eligible shareholders
+of the Ranbaxy who were entitled to receive Equity
+shares of the Company pursuant to the Scheme of
+Arrangement for merger of Ranbaxy Laboratories Ltd.
+into the Company, in the ratio of 4 Equity Share of ₹ 1/-
+each of the Company for every 5 Equity Shares of
+2
+Member
+2
+Member
+4
+5
+5
+Member
+2
+Chairman
+Meetings attended
+Committee
+of Directors
+(Allotment)
+No. of Committee
+Member
+Meetings attended
+Relationship
+Committee
+No. of
+Stakeholders'
+No. of Equity Shares held
+(held singly or jointly as
+Mr. Ashwin S. Dani
+Ms. Rekha Sethi
+Mr. Keki M. Mistry
+Mr. Hasmukh S. Shah
+Mr. S. Mohanchand Dadha
+Mr. Israel Makov
+Name of the Director
+e) The details of Equity Shares held by Non-Executive
+Directors as on 31st March, 2016:
+first holder)
+of erstwhile Ranbaxy Laboratories Ltd., pursuant
+to the Scheme of Arrangement for merger of
+Ranbaxy Laboratories Ltd., into the Company.
+None of the Directors are entitled to stock options.
+There is no separate provision for payment of
+severance fees to Whole-time Director(s).
+d) The remuneration of Whole-time Directors
+consists only of fixed components.
+The Agreement with Mr. Dilip S. Shanghvi,
+Mr. Sudhir V. Valia and Mr. Sailesh T. Desai,
+the Executive Directors are for a period of 5
+years. Either party to the agreement is entitled to
+terminate the Agreement by giving to the other
+party 30 days' notice in writing.
+b)
+a)
+Notes: -
+During the year, payment of remuneration as per their
+entitlement for the year 2015-16 has been made to them
+only for part of the year upto the permissible limits. On
+receipt of the approval from the Central Government, the
+balance amount of remuneration for the year 2015-16
+as per their entitlement shall be paid to the Managing
+Director and Whole time Director, as applicable, and
+the same will be given effect to in the year in which the
+approval is received.
+The Company has made further representation vide letter
+dated 24th December, 2015 to the Central Government in
+response to their letter, for approval of the remuneration
+upto the limit as approved by the members, the response
+in respect of which is awaited. In case the requisite
+approval is not received from the Central Government, the
+excess remuneration would be refunded by the Managing
+Director and the Whole-time Director.
+The Company is permitted to pay upto ₹ 1.84 crores to
+each Whole-time Director, even without the approval
+of the Central Government based on the calculation of
+limit as per Schedule V of the Act. The Company has
+accordingly, paid remuneration to its Managing Director
+and Whole time Directors for 2015-16, within the limits
+of Schedule V of the Act, as applicable.
+**Commission to Managing Director: Subject to availability of profit and at the rate of not more than 1% of the net profit for the year, the Board of
+Directors will determine the commission payable within the overall ceiling laid as per the Act, as may be applicable from time to time. However no
+commission is paid to the Managing Director.
+The Company has formulated two Schemes for
+grant of stock options to the eligible employees
+73
+Nil
+Nil
+Chairman/
+Member of the
+Committee
+Name of the
+Director
+Four Meetings of the Stakeholders' Relationship
+Committee were held during the year ended 31st
+March, 2016. The dates on which Meetings were held
+are as follows: 29th May, 2015, 11th August, 2015,
+31st October, 2015 and 12th February, 2016. The
+attendance of each Member of the Committee is
+given below:
+The Board has designated severally, Mr. Sunil R.
+Ajmera, Company Secretary and Mr. Ashok I. Bhuta,
+G.M-Legal & Secretarial as Compliance Officers.
+grievances of shareholders, debenture holders and
+other security holders of the Company, to consider
+and resolve grievances of the security holders of the
+Company including complaints related to transfer of
+shares, non-receipt of balance sheet, non-receipt of
+declared dividends, etc, to approve issue of duplicate
+share certificates and to oversee and review all matters
+connected with the transfer, transmission and issue of
+securities, to oversee the performance of the Registrar
+and Transfer Agents and recommend measures for
+overall improvement in the quality of investor services,
+to investigate any activity within its terms of reference,
+to seek information from share transfer agents, to
+obtain outside legal or other professional advice and to
+secure attendance of outsiders with relevant expertise,
+if it considers necessary and have full access to the
+information contained in the records of the Company.
+FINANCIAL STATEMENTS
+85-206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+16
+CORPORATE OVERVIEW
+72
+The terms of reference of the Committee inter alia
+includes the following: To look into redressal of
+The Stakeholders' Relationship Committee presently
+comprises of Mr. S. Mohanchand Dadha, Mr. Dilip S.
+Shanghvi, Mr. Sudhir V. Valia with Mr. Hasmukh S. Shah
+as the Chairman. The constitution of the Stakeholders'
+Relationship Committee meets with the requirements
+of Section 178 of the Companies Act 2013 and also
+of Regulation 20 of the Listing Regulations, 2015.
+Mr. Sunil R. Ajmera, the Company Secretary of the
+Company is the Secretary of the Committee. The Board
+of Directors has delegated the power of approving
+transfer of securities to M/s. Link Intime India Pvt. Ltd,
+and/or the Company Secretary of the Company.
+ZZ
+7. STAKEHOLDERS' RELATIONSHIP
+COMMITTEE
+Nil
+Nil
+43,270
+-
+* Company's contribution to provident fund, and superannuation fund or annuity fund, gratuity payment as per Company's rules and encashment of leave
+at the end of his tenure, are not included in the computation of, ceiling on remuneration and perquisites as aforesaid.
+SUN
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+02 - 05
+CORPORATE OVERVIEW
+―
+74
+31st October, 2015
+27th September,
+2014
+9.45 a.m.
+12.00 noon
+11.30 a.m.
+30th September,
+2013
+Time
+Date
+Prof. Chandravadan C. Mehta Auditorium -
+General Education Center, Maharaja Sayajirao
+University of Baroda, Near D. N. Hall,
+Pratap Gunj, Vadodara-390002, Gujarat
+Sir Sayajirao Nagargruh, Akota,
+Vadodara- 390 020, Gujarat
+Sir Sayajirao Nagargruh, Akota,
+Vadodara 390 020 Gujarat
+Location
+Twenty-Second AGM
+Twenty-Third AGM
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85-206
+(ii) Special Resolutions passed during the last
+three Annual General Meetings:
+a)
+Approval by members of the Company
+accorded for remuneration paid to Mr.
+Dilip S. Shanghvi, Managing Director,
+(DIN:00005588), of the Company for the
+financial year 2013-14 which is in excess
+of the limits prescribed under Schedule XIII
+of the Companies Act, 1956 in view of the
+absence of profits for the financial year
+2013-14.
+Approval for further issue of securities for an
+aggregate amount (inclusive of such premium
+as may be fixed on the securities) not
+exceeding 120 Billion (Rupees One Hundred
+Twenty Billion only)
+Approval under Section 180 (1)(c) of the
+Companies Act, 2013 to borrow money on
+behalf of the Company upto a maximum limit
+of 500 Billion (Rupees Five Hundred Billion
+only).
+4.
+2.
+b) At Twenty-Second Annual General Meeting:
+1. Approval under Section 186 of the
+Companies Act, 2013 upto a maximum limit
+of 500 Billion (Rupees Five Hundred Billion
+only).
+corporate loans, guarantees and investments
+to be made by the Company not exceeding
+*500 Billion (Rupees Five Hundred Billion only)
+Approval for increase in the limit of inter-
+2014-2015
+7.
+5. Approval for raising funds by the Company
+by issue of Convertible bonds, debentures,
+equity shares, Global Depository Receipts,
+American Depository Receipts, etc not
+exceeding 120 Billion (Rupees One Hundred
+Twenty Billion only).
+Approval for appointment and remuneration
+payable to Mr. Aalok Shanghvi, being a
+relative of a Director, to hold office/place of
+profit for the period from 1st April, 2014 up to
+31st March, 2019.
+Approval for reappointment of Mr. Sailesh
+T. Desai as Whole-Time Director of the
+Company for further period of five years
+on such terms and conditions including
+remuneration with effect from 1st April, 2014
+up to 31st March, 2019.
+4.
+3.
+2. Approval for reappointment of Mr. Sudhir V.
+Valia as Whole-Time Director of the Company
+for further period of five years on such terms
+and conditions including remuneration with
+effect from 1st April, 2014 up to 31st March,
+2019.
+At Twenty-First Annual General Meeting:
+Approval for increase in upper limit of
+remuneration payable to Mr. Sudhir V. Valia,
+Whole-Time Director of the Company,
+with effect from 1st April, 2013 up to the
+remaining period of his tenure, i.e 31st March,
+2014.
+1.
+6. Approval for increase in the borrowing limit
+of the Company not exceeding * 500 Billion
+(Rupees Five Hundred Billion only)
+2013-2014
+Meeting
+Twenty First AGM
+Year
+2012-2013
+Two Risk Management Committee Meetings were held
+during the year ended 31st March, 2016. The dates on
+which the meetings were held are as follows:
+11th August, 2015 and 12th February, 2016.
+The Risk Management Committee comprises of
+Mr. Dilip S. Shanghvi, Managing Director of the
+Company, Mr. Sudhir V. Valia, Whole time Director
+of the Company and Mr. Uday Baldota, CFO of the
+Company. The Chairman of the Committee is Mr. Dilip
+Shanghvi. The constitution of the Committee meets the
+requirements of Regulation 21 of the Listing Regulations,
+2015. The terms of reference of the committee inter
+alia include: to formulate and recommend to the
+Board a Risk Management Plan/Policy, to implement,
+monitor and review the risk management plan for the
+Company, to recommend and implement procedures
+for risk assessment and minimization, to monitor the
+Risk Management Policy of the Company from time to
+time, to discharge such other functions and exercise
+such other powers as may be delegated/ directed by the
+Board of Directors from time to time. Mr. Sunil R. Ajmera,
+the Company Secretary of the Company is the Secretary
+of the Committee.
+1
+1
+1
+10. RISK MANAGEMENT COMMITTEE
+Meetings attended
+No. of Corporate
+Social Responsibility
+Committee
+12. GENERAL BODY MEETINGS
+Member
+Member
+Mr. Sudhir V. Valia
+Chairman
+Mr. Dilip S. Shanghvi
+Chairman/
+Member of the
+Committee
+Name of the
+Director
+One Corporate Social Responsibility Committee
+Meeting was held on 29th May, 2015, during the year
+ended 31st March, 2016. The attendance of each
+member of committee is as follows:
+such other powers as may be delegated/ directed by
+the Board of Directors from time to time. The contents
+of the CSR Policy of the Company can be accessed
+through the web link http://www.sunpharma.com/
+policies.
+Ms. Rekha Sethi
+PHARMA
+The attendance of each member of committee is as
+follows:
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Mr. Uday Baldota
+(i)
+Location and time of the last three Annual General Meetings held are as follows:
+The policy for determining material subsidiaries of the
+Company is available on the website of the Company and
+can be accessed at http://www.sunpharma.com/policies.
+Copies of the Minutes of the Board Meetings of the
+unlisted subsidiary Companies were placed at the
+Board Meetings of the Company held during the year.
+The Board of Directors of the Company reviewed
+periodically, the statement of all significant transactions
+and arrangements entered into by the unlisted
+subsidiary companies.
+The financial statements including investments made
+by the unlisted subsidiaries were placed before and
+reviewed by the Audit Committee of the Company.
+Mr. S. Mohanchand Dadha, and Ms. Rekha Sethi,
+Independent Directors of the Company are also
+Directors on the Board of Sun Pharma Laboratories
+Limited, as per the requirements specified in Regulation
+24 of the Listing Regulations, 2015.
+In accordance with Regulation 16 of the Listing
+Regulations, 2015, Sun Pharma Laboratories Limited
+is a material Indian subsidiary Company (whose Debt
+Securities were listed during the year on BSE) whose
+turnover or net worth (i.e., paid-up capital and free
+reserves) exceeds 20% of the consolidated turnover
+or net worth respectively, of the Company and its
+subsidiaries in the immediately preceding
+accounting year.
+Name of the
+Director
+2
+2
+11. SUBSIDIARY COMPANIES
+Member
+Member
+Chairman
+Meetings attended
+Committee
+No. of Risk
+Management
+Chairman/
+Member of the
+Committee
+2
+918.00
+1.18
+8.
+>
+Chairman's Communique: The Chairman's
+Speech is placed on the website of the Company.
+Reminder to Investors: Reminders for unpaid
+dividend are sent to shareholders as per records
+every year.
+Corporate Filing: Announcements, Quarterly
+Results, Shareholding Pattern etc. of the Company
+are regularly filed by the Company with the Stock
+Exchanges and are available on the website of BSE
+Ltd. - www.bseindia.com, National Stock Exchange
+of India Ltd. - www.nseindia.com.
+15. GENERAL SHAREHOLDER INFORMATION
+15.1 Annual General Meeting:
+Date and Time
+Venue
+Saturday, 17th September, 2016,
+at 11.15 a.m.
+Sir Sayajirao Nagargruh, Akota,
+Vadodara 390 020, Gujarat
+15.2 Financial Calendar (tentative):
+-
+Results for quarter ending 30th June,
+2016 - Second week of August 2016.
+Results for quarter ending 30th September,
+2016 Second week of November 2016.
+Results for quarter ending 31st December,
+2016 - Second week of February 2017.
+Audited Results for year ended 31st March,
+2017 Third or Fourth week of May 2017.
+-
+15.3 Details of Book-closure for Equity
+Shareholders:
+From Saturday, 10th September, 2016 to
+Saturday, 17th September, 2016 (both days
+inclusive)
+15.4 Dividend Payment Date:
+>
+>
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+The Company avails professional consultancy
+services from Makov Associates Ltd, in which
+Mr. Israel Makov, Non-Executive and Non-
+Independent Director of the Company is interested.
+Other than this, there are no pecuniary relationships
+of the Non-Executive Directors with the Company.
+Details of compliance and Adoption/Non Adoption
+of the non-mandatory requirements for the year
+ended 31st March, 2016:
+(i) The Company complies with all the mandatory
+requirements specified under clause 49 of the
+>
+erstwhile Listing Agreement applicable upto
+30th November, 2015 and Listing Regulations,
+2015 applicable w.e.f. 1st December, 2015.
+(ii) The Chairman of the Company is a Non-
+Executive Director.
+(iii) The Company does not send half-yearly
+financial results including summary of the
+significant events in the last six months to the
+household of each shareholder as the financial
+results are published in the newspapers and
+also posted on the website of the Company
+and the websites of BSE and NSE.
+(iv) The auditors have issued an unmodified
+opinion of the financial statements of the
+Company.
+On or before 21st September, 2016
+(v) The Company has separate position for
+Chairman and Managing Director
+14. MEANS OF COMMUNICATION
+Website: The Company's website
+www.sunpharma.com contains a separate
+dedicated section 'INVESTORS' where
+shareholders' information is available. The full
+Annual Report is also available on the website in a
+user friendly and downloadable form. Apart from
+this, official news releases, detailed presentations
+made to media, analysts etc., and the transcript
+of the conference calls are also displayed on the
+Company's website.
+>
+Financial Results: The annual, half-yearly and
+quarterly results are regularly posted by the
+Company on its website www.sunpharma.com.
+These are also submitted to the Stock Exchanges
+in accordance with the listing requirements and
+published in all English Editions of 'Mint'/'Financial
+Express'.
+Annual Report: Annual Report containing inter alia
+Audited Annual Accounts, Consolidated Financial
+Statements, Board's Report, Auditors' Report,
+and other important information is circulated
+to Members and others entitled thereto. The
+Management's Discussion and Analysis Report
+forms part of the Annual Report.
+77
+SUN
+PHARMA
+(vi) The Internal Auditor reports their findings to
+the Audit Committee of the Company.
+15.5 (i) Listing of Equity Shares on Stock
+Exchanges
+At BSE Limited (BSE) and National Stock
+Exchange of India Limited (NSE)
+15.5 (ii) Payment of Listing Fee
+920.00
+1,010.00
+920.05
+June, 2015
+918.00
+808.00
+917.80
+807.25
+1010.10
+July, 2015
+799.05
+957.00
+795.25
+August, 2015
+965.15
+820.15
+966.00
+820.00
+957.00
+The policy on dealing with the related party
+transactions is available on the website of the
+Company and can be accessed at
+http://www.sunpharma.com/policies.
+May, 2015
+1,200.80
+Listing Fees for the financial year 2016-17
+have been paid to BSE Limited and National
+Stock Exchange of India Limited, where the
+Company's Equity Shares continue to be listed.
+15.6 Stock Code: Equity Shares
+(a) Trading Symbol BSE
+Ltd. (Demat Segment)
+Trading Symbol
+National Stock
+Exchange (Demat
+Segment)
+(b) Demat ISIN Numbers
+in NSDL and CDSL for
+Equity Shares of ₹1/-
+each
+SUNPHARMA
+524715
+SUNPHARMA
+ISIN
+No.INE044A01036
+15.7 Stock Market Data
+78
+912.25
+-
+BSE Ltd. (BSE) (in)
+National Stock Exchange of India Ltd.
+(NSE) (in)
+Month's High Price Month's Low Price
+Month's High Price
+Month's Low Price
+April, 2015
+1200.70
+913.00
+Equity Shares of ₹1/- paid-up value:
+7.
+During the year a separate meeting of the
+independent directors was held inter-alia to review
+the performance of non-independent directors
+and the board as a whole.
+The Board of Directors of the Company has
+approved a whistle blower policy/vigil mechanism
+to monitor the actions taken on complaints received
+under the said policy. This policy also outlines the
+reporting procedure and investigation mechanism to
+be followed in case an employee blows the whistle
+for any wrong-doing in the Company. Employees
+are given protection in two important areas -
+confidentiality and against retaliation. It is ensured
+that employees can raise concerns regarding any
+violation or potential violation easily and free of any
+fear of retaliation, provided they have raised the
+concern in good faith. An Ombudsperson/s has
+been appointed to receive the complaints through a
+portal or email or letters who would investigate the
+complaints with an investigating committee. The
+final decision would be taken by the Ombudsperson
+in consultation with the Management and the Audit
+Committee. The Policy is expected to help to draw
+the Company's attention to unethical, inappropriate
+or incompetent conduct which has or may have
+detrimental effects either for the organisation or
+for those affected by its functions. The details of
+establishment of vigil mechanism are available on
+the website of the Company. No personnel has been
+denied access to the Audit Committee.
+No. of votes
+polled
+% of votes
+Polled on
+outstanding
+(2) (3)=[(2)/(1)]
+% of votes
+against
+on votes
+polled
+(7)=[(5)/
+No. of Votes No. of votes
+in favour
+held
+against
+shares
+(4)
+(5)
+(6)=[(4)
+*100
+99.014
+(2)]*100
+(2)]* 100
+1303517680
+% of votes
+in favour on
+votes polled
+0
+No. of Shares
+Promoter/
+Approval by members of the Company
+accorded for Commission paid to the Non-
+Executive Directors of the Company (other
+than the Managing Director and/or Whole-
+time Directors) for the financial year 2013-14
+which is in excess of the limits prescribed
+under Companies Act, 1956 in view of the
+absence of profits for financial year 2013-14.
+Approval for the payment of Commission to
+Non-Executive Directors of the Company for
+each financial year over a period of five years
+― 75
+SUN
+PHARMA
+― ANNUAL REPORT 2015-16
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+9.
+Public
+from the current financial year ending on
+31.03.2015 up to and including financial year
+of the Company ending on 31.03.2019 to be
+calculated in accordance with the provisions
+of Section 198 of the Companies Act, 2013.
+c) At the Twenty-Third Annual General Meeting.
+1. Approval for deletion of Clause 135 (bb) of the
+Articles of Association of the Company pursuant
+to Section 14 of the Companies Act, 2013.
+2.
+Approval for further issue of securities for an
+aggregate amount (inclusive of such premium
+as may be fixed on the securities) not
+exceeding 120 Billion (Rupees One Hundred
+Twenty Billion only).
+(iii) Postal Ballot and Procedure for Postal Ballot
+The following special resolution was passed by
+postal ballot during the year 2015-16.
+1. Approval to make loan (s) and/or give any
+guarantee (s)/provide any security(ies)in
+connection with loan(s) made and to make
+investments in shares, debentures and/or any
+other securities of any other body corporate
+under section 186 of the Companies Act,
+2013 upto a maximum of 500 Billion only.
+The Board had appointed Practicing Company
+Secretary, C. J. Goswami & Associates, Mumbai
+as a Scrutinizer to conduct the postal ballot
+voting process in a fair and transparent manner.
+The result of the Postal Ballot was declared on
+November 6, 2015.
+The details of the voting pattern in respect of
+Special Resolution passed through postal ballot
+are as under:
+The details of the voting pattern in respect of Special Resolution passed through postal ballot are as under:
+Approval to Mr. Aalok D. Shanghvi, who is
+relative of Director to hold office or place of
+profit under the Company for a period of five
+years from 1st April, 2014, and remuneration
+(excluding reimbursement of expenses, if any)
+of 15,000,000/- (Rupees One Crore Fifty
+Lakhs Only) per annum.
+100.000
+0
+43672775 5069183
+1539324039 321949866
+82.703
+17.297
+There is no proposal as on the date of this report, for passing any resolution through Postal Ballot.
+13. DISCLOSURES
+>
+No transaction of a material nature has been
+entered into by the Company with Directors or
+Management and their relatives, etc. that may
+have a potential conflict with the interests of
+the Company. Register of contracts containing
+transactions, in which directors are interested, is
+placed before the Board of Directors regularly. The
+transaction with the related parties as per AS-18,
+are disclosed in the Annexure "A" attached to the
+Notes forming part of the Standalone Financial
+Statements for the year ended 31st March, 2016.
+There were no instances of non-compliance by
+the Company on any matters related to the capital
+markets or penalties, strictures imposed on the
+Company by the Stock Exchange or SEBI or any
+statutory authority on any matter related to capital
+markets, during the last three years.
+The Company has laid down procedures to inform
+Board members about the risk assessment and
+its minimization, which is periodically reviewed
+to ensure that risk control is exercised by the
+management effectively.
+10.400
+76
+CORPORATE OVERVIEW
+02 - 05
+STATUTORY REPORTS
+06 - 84
+FINANCIAL STATEMENTS
+85-206
+>
+>
+>
+>
+—
+89.600
+20,442,883
+20.908
+77.344
+(1)
+Promoters
+1316496400
+1303517680
+and Promoter
+Group
+Public -
+856876805
+509014267
+59.403
+192133584 316880683
+37.746
+62.254
+Institutional
+holders
+Public - Others
+Total
+233122932
+2406496137
+48741958
+1861273905
+Details of the familiarization programme of the
+independent directors are available on the website of
+the Company at http://www.sunpharma.com/policies
+88-
+(c) According to the information and explanations given to us and the records examined by us and based on the
+examination of the registered sale deed/transfer deed / conveyance deed / agreement for sale along with
+registered power of attorney / consent terms taken on record by the Honorable Bombay City Civil Court at Bombay
+/ share certificate / other documents evidencing title provided to us, we report that, the title deeds, comprising all
+the immovable properties of freehold land and buildings, are held in the name of the Company as at the balance
+sheet date, except the following:
+CORPORATE OVERVIEW
+-
+ashok.bhuta@sunpharma.com
+sunil.ajmera@sunpharma.com
+Goregaon-East, Mumbai - 400 063,
+Sun House, Plot No. 201 B/1, Western Express Highway,
+Mr. Nimish Desai,
+Mr. Sunil R. Ajmera/ Mr. Ashok I. Bhuta/
+secretarial@sunpharma.com
+To the Depository Participant.
+For Shares held in Demat Form
+E-Mail: sunpharma@linkintime.co.in, rnt.helpdesk@linkintime.co.in
+Tel: 022-25946970, Fax: 022-25946969
+nimish.desai@sunpharma.com
+400 078.
+Link Intime India Pvt. Ltd. C-13, Kantilal Maganlal Estate
+For Shares held in Physical Form
+17. Village Batamandi, Tehsil Paonta
+Sahib-173025, Distt. Sirmour (H.P.).
+15. Plot No. 1341 & 1342 EPIP-1, Hill Top
+Industrial Area, Village Bhatolikalan
+(Barotiwala), Baddi - 174103 (H.P.)
+16. Village & PO Ganguwala, Tehsil Paonta
+Sahib-173025, Distt. Sirmour (H.P.)
+13. Pharma Manufacturing Industrial Area 3 A.B.
+Road, Dewas-455001, Madhya Pradesh
+14. Plot No. B-2 Madkaim Industrial Estate,
+Ponda, Goa
+11. A-41, Industrial Area, Phase VIII-A, Sahibzada
+Ajit Singh Nagar, Mohali-160071 (Punjab)
+12. Plot No. K - 5,6,7, Ghirongi Industrial Area,
+Malanpur, Dist. Bhind,M P.
+10. Village Toansa, P.O. Railmajra Distt.
+Nawansahar-144533 (Punjab)
+Plot No. Z/15, Sez-1, Po. Dahej, Taluko vagra,
+Dist. Bharuch, Gujarat.
+9.
+(c) Any query on Annual Report
+Investor Complaints
+Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West)
+Mumbai
+secretarial@sunpharma.com
+DILIP S. SHANGHVI
+Managing Director
+Place: New York
+Date: 30th May, 2016
+4.
+2.
+1.
+Sun Pharmaceutical Industries Limited
+To The Members of
+AUDITORS' CERTIFICATE ON COMPLIANCE OF THE CONDITIONS OF CORPORATE GOVERNANCE
+UNDER CHAPTER IV OF THE LISTING REGULATIONS, 2015
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+83
+Managing Director
+Date: 30th May, 2016.
+For Sun Pharmaceutical Industries Ltd.,
+DILIP S. SHANGHVI
+I, Dilip S. Shanghvi, Managing Director of Sun Pharmaceutical Industries Limited ("the Company") hereby declare that, to
+the best of my information, all the Board Members and Senior Management Personnel of the Company have affirmed their
+compliance and undertaken to continue to comply with the Code of Conduct laid down by the Board of Directors of the
+Company.
+DECLARATION OF COMPLIANCE WITH CODE OF CONDUCT
+ANNEXURE TO CORPORATE GOVERNANCE FOR THE YEAR ENDED 31ST MARCH, 2016
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+Place: Mumbai
+Date: 30th May, 2016
+SAILESH T. DESAI
+Whole-time Director
+Place: Mumbai
+Date: 30th May, 2016
+SUDHIR V. VALIA
+Whole-time Director
+For and on behalf of the Board
+(b) E-mail id designated by the Company for
+For transfer/dematerialisation of Shares,
+payment of dividend on Shares, and any
+other query relating to the shares of the
+Company
+(a)
+15.17 Investor Correspondence
+7
+1,125
+Aggregate number of shareholders and the outstanding shares lying in
+the Unclaimed Suspense Account as on 1st April, 2015.
+Number of shareholders who approached the Company for transfer of
+shares from the said Unclaimed Suspense Account during the period
+from 1st April, 2015 up to 31st March, 2016.
+No. of Shareholders
+The status of outstanding unclaimed shares in
+the Unclaimed Share Suspense Account of the
+Company is as under:-
+Outstanding Unclaimed Shares
+The details of Number of Stock Options
+outstanding as on 31st March, 2016 are
+provided in the Board's Report.
+Outstanding Stock Options
+The Company does not have any outstanding
+GDRs/ADRs/Warrants/Convertible Instruments
+as on 31st March, 2016.
+15.14 Outstanding GDRs/ADRs/Warrants or any
+Convertible instruments, conversion date
+and likely impact on equity:
+(Source: Compiled from data available on BSE and NSE
+website)
+(Millions)
+Particulars
+About 99.37% of the outstanding Equity shares
+have been de-materialised up to 31st March,
+2016. Trading in Shares of the Company is
+15.13 Dematerialisation of Shares
+Others
+| Foreign National
+| Foreign Portfolio Investor (Corporate)
+Trusts
+Clearing Members
+INRIS/OCBS
+Directors
+Indian Public
+| Private Corporate Bodies
+Banks/ Financial Institutions and Insurance Companies
+No. of equity shares of
+1/- each of Sun Pharma
+400,820
+5.
+2,263
+Aggregate number of shareholders and the outstanding shares lying in
+7. Plot No. 817/A, Karkhadi - 391 450,
+Taluka: Padra, Distt. Vadodara, Gujarat.
+8. Survey no. 259/15, Dadra - 396191,
+U.T. of D. & NH.
+6. Halol-Baroda Highway, Near Anand
+Kendra, Halol, Dist. Panchmahal- 389350
+Gujarat.
+5. Sathammai Village, Karunkuzhi Post,
+Maduranthakam T.K. Kanchipuram Dist.
+Tamil Nadu - 603 303.
+4. Plot No. 4708, GIDC, Ankleshwar - 393 002,
+Gujarat.
+Ahmednagar - 414 111, Maharashtra.
+3. A-7 & A-8, MIDC Industrial Area,
+-
+2. Plot No.24/2 and No.25, GIDC, Phase- IV,
+Panoli 395 116, Dist. Bharuch, Gujarat.
+U.T. of D & NH.
+1. Survey No.214 and 20, Govt. Industrial Area,
+Phase-II, Piparia, Silvassa - 396 230,
+15.16 Plant locations as on 31st March, 2016:
+82
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+- 81
+The Company is exposed to foreign exchange risks emanating from our business, assets and liabilities
+denominated in foreign currency. In order to hedge this risk, the Company proactively uses hedging instruments
+e.g. forward contracts, options and other simple derivatives from time to time. The Company does not have any
+significant exposure on commodities directly.
+15.15 Disclosure of Commodity price risk and commodity hedging activities
+*The voting rights in respect of these shares shall remain frozen till the claim of the rightful shareholders is approved by the Company.
+398,557*
+2,263
+1,118
+7
+the Unclaimed Suspense Account as on 31st March, 2016
+Number of shareholders to whom shares were transferred from the
+Unclaimed Suspense Account during the said period.
+We have examined the compliance of the conditions of Corporate Governance by SUN PHARMACEUTICAL
+INDUSTRIES LIMITED ("the Company"), for the year ended March 31, 2016, as stipulated in:
+> Clause 49 [excluding clause 49(VII)(E)] of the Listing Agreements of the Company with stock exchange(s) for the
+period from April 01, 2015 to November 30, 2015.
+>
+MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
+We have audited the internal financial controls over financial reporting of Sun Pharmaceutical Industries Limited ("the Company") as of 31st
+March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
+REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (I) OF
+SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACT")
+(REFERRED TO IN PARAGRAPH 1(F) UNDER 'REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS' OF OUR REPORT OF EVEN DATE TO THE
+MEMBERS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED)
+INDEPENDENT AUDITOR'S REPORT
+ANNEXURE "A" TO THE
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+―
+86
+Date: 30th May, 2016
+Place: Mumbai
+(Membership No. 36920)
+Partner
+RAJESH K. HIRANANDANI
+(Firm's Registration No. 117366W/W-100018)
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the Central Government in terms of
+Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
+There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
+Fund by the Company except a sum of 9.8 Million, which are held in abeyance due to pending legal cases.
+The Company has made provision, as required under the applicable law or accounting standards, for material
+foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Notes 6 and 9 to the
+standalone financial statements;
+The Company has disclosed the impact of pending litigations on its financial position in its financial
+statements - Refer Note 28(A)(i) to the standalone financial statements;
+ii.
+i.
+The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over
+financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance
+Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the
+"Guidance Note"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that
+were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the
+safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records,
+and the timely preparation of reliable financial information, as required under the Act.
+With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the
+Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to
+the explanations given to us:
+AUDITOR'S RESPONSIBILITY
+Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
+financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an
+understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
+evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
+auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or
+(a) The Company has maintained proper records showing full particulars, including quantitative details and situation
+of fixed assets.
+(i)
+(REFERRED TO IN PARAGRAPH 2 UNDER 'REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS' SECTION OF OUR REPORT OF EVEN DATE TO THE
+MEMBERS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED)
+INDEPENDENT AUDITOR'S REPORT
+ANNEXURE "B" TO THE
+Partner
+(Membership No. 36920)
+RAJESH K. HIRANANDANI
+(Firm's Registration No. 117366W/W-100018)
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+Date: 30th May, 2016
+Place: Mumbai
+In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects,
+an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were
+operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company
+considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
+Reporting issued by the Institute of Chartered Accountants of India.
+OPINION
+over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
+procedures may deteriorate.
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+SUN
+87
+-
+INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
+Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
+management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control
+A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the
+reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
+accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain
+to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
+company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
+accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
+accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention
+or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial
+statements.
+MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
+We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's
+internal financial controls system over financial reporting.
+error.
+Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We
+conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Act, to
+the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical
+requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over
+financial reporting was established and maintained and if such controls operated effectively in all material respects.
+| Mutual Funds and UTI
+6
+On the basis of the written representations received from the directors as on 31st March, 2016 taken on record
+by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a
+director in terms of Section 164 (2) of the Act.
+The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the
+Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial
+position, financial performance and cash flows of the Company in accordance with the accounting principles generally
+accepted in India, including the Accounting Standards prescribed under section 133 of the Act, as applicable.
+MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
+We have audited the accompanying standalone financial statements of SUN PHARMACEUTICAL INDUSTRIES LIMITED ("the
+Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow
+Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
+REPORT ON THE STANDALONE FINANCIAL STATEMENTS
+TO THE MEMBERS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED
+INDEPENDENT AUDITOR'S REPORT
+FINANCIAL STATEMENTS
+85 - 206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+CORPORATE OVERVIEW
+RAJESH K. HIRANANDANI
+Partner
+(Membership No. 36920)
+For Deloitte Haskins & Sells LLP
+Chartered Accountants
+(Firm's Registration No.117366W/W-100018)
+-
+84
+Date: May 30, 2016
+Place: Mumbai
+We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
+effectiveness with which the Management has conducted the affairs of the Company.
+In our opinion and to the best of our information and according to our examination of the relevant records and
+the explanations given to us and the representations made by the Directors and the Management, we certify that
+the Company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the Listing
+Agreements and Regulation 17 to 27 and clauses (b) to (i) of Regulation 46(2) and paras C, D and E of Schedule V of
+the Listing Regulations for the respective periods of applicability as specified under paragraph 1 above, during the year
+ended March 31, 2016.
+We have examined the relevant records of the Company in accordance with the Generally Accepted Auditing Standards
+in India, to the extent relevant, and as per the Guidance Note on Certification of Corporate Governance issued by the
+Institute of the Chartered Accountants of India.
+The compliance of the conditions of Corporate Governance is the responsibility of the Management. Our examination
+was limited to the procedures and implementation thereof, adopted by the Company for ensuring compliance with the
+conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of
+the Company.
+Regulations 17 to 27 [excluding Regulation 23(4)] and clauses (b) to (i) of Regulation 46(2) and paras C, D and E of
+Schedule V of the Listing Regulations for the period from December 01, 2015 to March 31, 2016.
+Regulation 23(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing
+Regulations) for the period from September 02, 2015 to March 31, 2016 and
+Clause 49(VII)(E) of the Listing Agreements of the Company with the stock exchange(s) for the period from April
+01, 2015 to September 01, 2015.
+>
+>
+This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the
+Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection
+and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and
+design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring
+the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial
+statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
+f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the
+operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an
+unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over
+financial reporting.
+AUDITOR'S RESPONSIBILITY
+We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required
+to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order under
+section 143(11) of the Act.
+In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards prescribed
+under section 133 of the Act, as applicable.
+The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in
+agreement with the books of account.
+In our opinion, proper books of account as required by law have been kept by the Company so far as it appears
+from our examination of those books.
+We have sought and obtained all the information and explanations which to the best of our knowledge and belief
+were necessary for the purposes of our audit.
+e)
+d)
+b)
+a)
+As required by Section 143(3) of the Act, we report that:
+2.
+1.
+REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
+Our opinion is not modified in respect of this matter.
+We draw attention to Note 55 to the standalone financial statements. As referred to in the said Note, remuneration to the
+Managing Director and a Whole-time Director of the Company for the previous year ended 31st March, 2015 is in excess of
+the limits specified under Schedule V to the Act by 20.7 Million. In this regard, we have been informed by the Management
+of the Company that they have made further representations to the Central Government in respect of their applications for
+approving the amounts of maximum remuneration for the three years ending 31st March, 2017, including for the excess
+amounts already paid / provided. The response in respect of the foregoing is awaited from the Central Government.
+EMPHASIS OF MATTER
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+― ANNUAL REPORT 2015-16
+PHARMA
+SUN
+85
+In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
+financial statements give the information required by the Act in the manner so required and give a true and fair view in
+conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st
+March, 2016, and its loss and its cash flows for the year ended on that date.
+OPINION
+We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
+the standalone financial statements.
+An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial
+statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material
+misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
+considers internal financial control relevant to the Company's preparation of the financial statements that give a true and
+fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the
+appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's
+Directors, as well as evaluating the overall presentation of the financial statements.
+We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified
+under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform
+the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
+Our responsibility is to express an opinion on these standalone financial statements based on our audit.
+Indian Promoters and Persons acting in Concert
+FINANCIAL STATEMENTS
+85 - 206
+380.19 4337.19
+270.62%
+264.33%
+36.18%
+300.51%
+27.24%
+15.43%
+42.67%
+-11.05%
+Sun Pharma
+Relative to Nifty
+-8.86%
+-19.91%
+Share Price
+Nifty
+(b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period
+of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of
+its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the
+year. According to the information and explanations given to us, no material discrepancies were noticed on such
+verification.
+Sun Pharma
+% Change in
+(Source: Compiled from data available on BSE and NSE website)
+10 Years
+5 Years
+3 Years
+2 Years
+Year-on-Year
+Period
+Share price performance relative to Nifty based on share price on 31st March, 2016
+PHARMA
+32.65%
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+237.97%
+127.43%
+% to total accounts
+Shares of face value *1 each/-
+Presently, the share transfers which are received
+in physical form are processed and transferred
+by Registrar and Share Transfer Agents and the
+share certificates are returned within a period
+of 15 days from the date of receipt, subject to
+the documents being valid and complete in all
+respects.
+No. of Accounts
+Numbers
+15.10 Share Transfer System
+Total
+100001 and above
+50001 100000
+40001 50000
+30001-40000
+20001 30000
+10001 20000
+5001 10000
+Upto 5000
+Shares held
+No. of Equity
+15.11 Distribution of Shareholding as on 31st March, 2016
+Fax: 022-25946969
+Tel: 022-25946970,
+rnt.helpdesk@linkintime.co.in
+E-Mail: sunpharma@linkintime.co.in
+Link Intime India Pvt. Ltd.
+C-13, Kantilal Maganlal Estate
+Pannalal Silk Mills Compound
+L.B.S. Marg, Bhandup (West),
+Mumbai 400 078.
+(Share
+transfer and
+communication
+regarding share
+certificates,
+dividends and
+change of
+address)
+15.9 Registrars & Transfer Agent
+726.56%
+853.99%
+Number
+― ANNUAL REPORT 2015-16
+- 79
+-25
+-20
+-15
+-10
+-5
+о
+5
+4717.38
+-25
+-20
+1772
+-15
+-10
+-5
+0
+5
+LO
+10
+Percentage Change
+Percentage Change
+BSE Sensex and NSE Nifty.
+15.8 Share price performance in comparison to broad-based indices
+FINANCIAL STATEMENTS
+85-206
+STATUTORY REPORTS
+06 - 84
+02 - 05
+1 ⠀ ⠀ ⠀ ] ⠀ ⠀ 17111
+SUN
+CNX Nifty
+BSE Sensex
+SPIL
+721.15%
+124.66%
+845.81%
+240.64%
+30.32%
+270.96%
+65.73%
+34.54%
+100.27%
+29.72%
+13.20%
+42.92%
+-10.48%
+-9.36%
+-19.84%
+5 years
+10 years
+3 years
+2 years
+Year-on-year
+Relative to Sensex
+Sun Pharma
+% Change in
+Bse Sensex
+Sun Pharma
+Share Price
+Period
+Share price performance relative to BSE Sensex based on share price on 31st March, 2016.
+SPIL
+% to total shares
+10
+98.52
+0.00
+0.19
+100.00
+635560783
+26.41
+8902546
+0.37
+1653586
+0.07
+5596569
+0.23
+3794306
+0.16
+143945529
+5.98
+64059267
+2.66
+139689410
+5.80
+75942148
+3.16
+1323022812
+No. of Shares
+Percentage
+54.97
+Total
+M. Others
+Foreign National
+31042
+4530501
+L.
+2406728499
+STATUTORY REPORTS
+06 - 84
+432895
+In value terms
+(in Thousands)
+BSE + NSE
+5382.26
+436.36 4945.90
+In no. of share
+NSE
+BSE
+Your Company's equity shares are fairly liquid and
+are actively traded on National Stock Exchange of
+India Ltd., (NSE) and The BSE Ltd. (BSE). Relevant
+data for the average daily turnover for the
+financial year 2015-16 is given below:
+permitted only in de-materialised form w.e.f.
+November 29, 1999 as per notification issued by
+the Securities and Exchange Board of India (SEBI).
+%
+54.97
+0.19
+3.16
+5.80
+2.66
+5.98
+0.16
+0.23
+0.07
+0.37
+26.41
+0.0001
+Shareholding Pattern as on 31st March 2016
+FINANCIAL STATEMENTS
+85-206
+CORPORATE OVERVIEW
+02 - 05
+J. Foreign Portfolio Investor(Corporate)
+Liquidity:
+I.
+0.06
+262
+0.22
+5368701
+0.03
+118
+0.25
+6101133
+0.04
+172
+0.33
+18814200
+7902536
+321
+1.08
+25923350
+0.46
+2031
+19826809
+0.63
+2769
+3.21
+Trusts
+77182459
+0.07
+0.78
+0.82
+0.19
+833
+Clearing Members
+NRIS/OCBs
+G.
+H.
+F.
+Indian Public
+E.
+Private Corporate Bodies
+D.
+Banks/Financial Institutions and Insurance Companies
+C.
+B. Mutual Funds and UTI
+Directors
+A.
+Indian Promoters and Persons acting in Concert
+93.31
+439401
+2406728499
+100.00
+100.00
+Particulars
+80
+-
+15.12 Shareholding Pattern as on 31st March, 2016 of Equity Shares as per Regulation 31 of the SEBI (Listing
+Obligations and Disclosure Requirements) Regulations 2015.
+2245609311
+(In)*
+71.8
+25.7
+87.8
+Earning per Share-Diluted
+29.0
+18.9
+18.9
+15.2
+28.8
+Earnings per Share-Basic (In)*
+65.2
+87.8
+74.7
+exceptional items) (In*)*
+29.0
+18.9
+18.9
+12.4
+13.1
+17.5
+65.2
+ANNUAL REPORT 2016-17
+25.7
+Dear Shareholders,
+IDENTIFYING NEW AND
+PROFITABLE GROWTH
+DRIVERS IN ORDER TO
+GENERATE CONSISTENT
+SHAREHOLDER VALUE.
+11.0
+FUTURE WILL NEED TO
+DEVELOP AN ABILITY TO
+CONSTANTLY MOVE UP IN
+THE PHARMACEUTICAL
+VALUE CHAIN. THIS
+WILL MANDATE
+BUSINESSES OF
+LANDSCAPE IS RAPIDLY
+CHANGING. HENCE,
+THE GLOBAL
+PHARMACEUTICAL
+LETTER
+MANAGING DIRECTOR'S
+PHARMA
+SUN
+3
+The Company has adopted Ind-AS accounting standards with effect from 1st April, 2015. Hence, FY16 onwards, the financials are reported as per Ind-AS and are not
+strictly comparable with previous years. For FY15, balance sheet items are as per Ind-AS.
+* During FY15, the Company's equity shares have increased to 2,406 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the Company,
+wherein 0.80 equity share of 1 each of the Company have been allotted to the shareholders of RLL for every 1.00 share of 5 each held by them.
+* During FY14, the Company issued bonus shares in the ratio of one equity share of 1/- for every share held.
+* During FY11, each equity share of 5/-was split into five equity shares of 1/- each.
+29.0
+18.9
+18.9
+15.2
+28.8
+17.5
+7.5
+45,145
+7.8
+14,625 15,328
+10,354
+Plant & Equipment and other
+Intangible assets
+Carrying value of Property,
+86,505 143,616 187,212 217,315
+45,473 54,269 75,763
+21,476 23,340
+15,960
+Property, Plant & Equipment
+and other Intangible assets (at
+cost/deemed cost)
+25,214
+2,071
+48,879 69,414 77,254
+Reserve and Surplus
+1,036 2,071
+1,036
+1,036
+1,036
+1,036
+The global pharmaceutical landscape is rapidly changing. There
+are both, opportunities and challenges. Opportunities include an
+ageing population, leading to growing needs of modern medicines
+at affordable cost and evolution of new chemical and biological
+approaches towards targeted drug delivery. At the same time,
+rising healthcare costs (which force governments to intervene on
+pricing), increasing competitive intensity, customer consolidation
+and increased focus on value delivered; imply that businesses of
+future will need to develop an ability to constantly move up in the
+pharmaceutical value chain. This will mandate identifying new
+and profitable growth drivers in order to generate consistent
+shareholder value.
+1,036
+2,407 2,399
+93,798 121,322 148,862 183,178 278,009 327,418 363,997
+29,295
+49,827 96,848 124,130 149,404
+Investments
+6.4
+Adjusted Earing per Share (post
+2,407 2,399
+2,071
+2,071
+1,036
+1,036
+1,036
+207
+207
+207
+Number of Shares (Million)
+Stock Information
+24,116 27,860 35,028 18,299 11,919
+86,618 126,969 135,488 167,973 150,666
+76,749
+58,622
+26,557 22,129
+18,595 31,664
+35,485 28,542
+33,995
+Net Current Assets
+6,565
+5.6
+HIGHLIGHTS OF FY17
+Despite these challenges, we continue to invest in enhancing our
+global specialty and complex generics pipeline. Investments will
+also continue for setting up the requisite front-end capabilities for
+our specialty business in the US. These investments may not have
+commensurate revenues in FY18, but in the long term, the revenue
+from specialty products will justify these investments.
+customer consolidation and higher competitive intensity. We also
+faced anticipated delays in product approvals at the Halol facility,
+driven by the cGMP compliance remediation efforts at the facility.
+However, the US performance was partly boosted by the 180-day
+exclusivity on generic Imatinib, which expired in July 2016. Overall,
+we recorded 2% growth in the US for the year.
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+8
+INCREASED VOLUMES OF
+BRANDED GENERICS IN
+THE EMERGING MARKETS
+INTRODUCTION OF NEW
+INNOVATIVE PRODUCTS
+IN THE DEVELOPED
+MARKETS AND
+INDUSTRY WILL BE
+PHARMACEUTICAL
+THE TWO MAIN
+DRIVERS OF OVERALL
+GROWTH FOR THE
+PHARMA
+SUN
+MANAGEMENT DISCUSSION
+AND ANALYSIS
+7
+Sun Pharmaceutical Industries Ltd.
+Managing Director
+Dilip Shanghvi
+Warm regards,
+As a shareholder, you have continuously supported our endeavours
+over the past many years. As always, we are grateful to you for this
+confidence.
+The short-term outlook continues to be challenging. The US generics
+industry is facing rapidly changing market dynamics. Increased
+competitive intensity and customer consolidation is leading to
+pressure on pricing; while continued delay in approvals from the
+Halol facility is also impacting us. Also, we had the benefit of Imatinib
+exclusivity in the US in FY17, which has ended in July 2016. In the
+Indian market, there is uncertainty amongst the trade channels due
+to the GST implementation, although it may be temporary. Given
+these factors, growth could be a challenge in FY18 and we expect a
+single-digit decline in consolidated revenues for FY18 over FY17.
+Our consolidated R&D investments for FY18 will be about 9-10%
+of revenues.
+As we target moving up the pharmaceutical value chain, Sun Pharma
+is undergoing a gradual transformation. We need to cross many
+milestones in this transformation. Our capable and committed
+employees will be key drivers of this transformation.
+OVERALL OUTLOOK
+During the year, we also enhanced our presence in Russia through
+the acquisition of JSC Biosintez, a Russian pharmaceutical
+company engaged in manufacture and marketing of pharmaceutical
+products in Russia and CIS region for US$ 24 Million. Sun
+Pharma also assumed a debt of approximately US$ 36 Million
+as part of this transaction. Biosintez focuses on the hospital
+segment and had annual revenue of approximately US$ 52
+Million for 2015. It has a manufacturing facility in Penza region
+with capabilities to manufacture a wide variety of dosage forms,
+including pharmaceuticals for injections, blood substitutes,
+blood preservatives, ampoules, tablets, ointment, creams, gels,
+suppositories, APIs, and so on. This acquisition is consistent with
+Sun Pharma's philosophy to invest in strategic emerging markets.
+It provides the Company access to local manufacturing capability
+across multiple dosage forms in Russia, enabling it to serve the
+Russian pharmaceutical market effectively.
+ANNUAL REPORT 2016-17
+GLOBAL PHARMACEUTICAL INDUSTRY¹
+The global spending on medicines is expected to reach nearly US$ 1.5 Trillion
+by 2021. This is an increase of nearly US$ 370 Billion from the 2016 estimated
+spending level, representing a CAGR of 4-7%. The two main drivers of this growth
+will be introduction of new innovative products in the developed markets and
+increased volumes of branded generics in the emerging markets.
+The growth of a country's pharmaceutical industry closely mirrors its general
+economic progress. As economies of the world demonstrate widely divergent
+growth patterns, industry growth is also different. However, taking a macro
+perspective, global pharmaceutical growth depends on worldwide economic
+momentum, government healthcare programmes and spending patterns. While
+R&D efforts will drive the introduction of new products in the market, challenges
+remain. For countries grappling with sluggish economies and limited resources,
+funding access to these medicines remains an uphill task.
+Equity Share Capital
+1,455-1,485
+Constant US$
+2021
+2016-2021
+2016
+2011-2016
+2011
+2016-2021
+CAGR
+4-7%
+350-380
+1,105
+CAGR
+2011-2016
+6.2%
+300-400
+006-008
+(US$ Bn)
+GLOBAL PHARMACEUTICAL SPENDING AND
+GROWTH 2011-2021¹
+Chart 1
+Each country in the world is facing these challenges and addressing them in its own
+way. Overall, generic products will continue to be an integral part of these efforts,
+targeted at striking a balance between access to healthcare and ability to fund it.
+ENHANCING PRESENCE IN RUSSIA
+Our FY17 topline grew by 9% to 302 Billion which, was in line
+with our annual guidance. In the US, which is a large contributor to
+our revenues, we faced increased pricing pressure driven mainly by
+During the year, Sun Pharma initiated the process of transferring
+marketing authorisations of the 14 brands (acquired from Novartis
+in March 2016). The transfer of these brands has commenced in a
+phased manner beginning October 2016 onwards. Simultaneously,
+Sun Pharma entered into a distribution alliance with Mitsubishi
+Tanabe Pharma Corporation (MTPC) for these brands. Under this
+alliance, following the transfer of manufacturing and marketing
+rights to Sun Pharma, MTPC will market and distribute all 14 brands
+as well as provide information on their proper use to healthcare
+professionals in Japan. Through this alliance, Sun Pharma can
+leverage MTPC's specialised expertise to create a strong business
+foundation in Japan.
+FINANCIAL STATEMENTS 80-278
+OUTCOMES.
+SPECIALTY STRATEGY
+ENTAILS BUILDING A
+PIPELINE OF PATENTED
+PRODUCTS FOR GLOBAL
+MARKETS WITH A FOCUS
+ON IMPROVING PATIENT
+OUR INVESTMENTS. OUR
+WE CONTINUE TO
+ALLOCATE SIGNIFICANT
+RESOURCES IN BUILDING
+OUR GLOBAL SPECIALTY
+BUSINESS. CURRENTLY,
+THIS BUSINESS IS
+IN AN INVESTMENT
+PHASE AND DOES NOT
+GENERATE REVENUES
+COMMENSURATE TO
+1. We received approval from USFDA for the New Drug Application
+(NDA) related to BromSiteTM (bromfenac ophthalmic solution)
+0.075%. This product was subsequently commercialised in
+November 2016.
+SIGNIFICANT RAMP-UP IN SPECIALTY PIPELINE
+During the year, we significantly ramped-up our specialty portfolio.
+We enhanced both, our specialty pipeline as well as our on-market
+portfolio. Some of the key highlights are:
+Over the past two years, we have also focused on establishing
+the requisite front-end capabilities for our specialty business.
+This involves setting up relevant sales force (for promoting these
+products to doctors), establishing the required regulatory and
+reimbursement teams along with support staff.
+Specialty projects have long-gestation timelines and we have to
+cover a long distance in this journey. Our initiatives in this segment
+cover the entire value chain, from in-licensing early-to-late stage
+clinical candidates, as well as getting access to on-market patented
+products. Dermatology, Ophthalmic, Oncology and CNS are the key
+segments targeted through these initiatives.
+Our specialty initiatives target the global market with the US being
+one of the important markets. Our strategy entails building a pipeline
+of patented products for global markets with a focus on improving
+patient outcomes either by targeting unmet medical needs or by
+enhancing patient convenience through differentiated dosage forms.
+and Almirall announced the validation of the regulatory filing of
+tildrakizumab with the European Medicines Agency (EMA). Post the
+close of the year, we announced the acceptance of the regulatory
+filing of tildrakizumab by the USFDA. Hence, tildrakizumab is now
+awaiting regulatory approval from both the US and Europe.
+Over the past few years, we have allocated significant resources
+in building the specialty business. Since this business is in an
+evolutionary stage, it currently does not generate revenues
+commensurate to our investments. Our current profitability is after
+taking into account these investments.
+Our R&D investments for the year were 23 Billion, targeted mainly
+at developing complex generics and specialty products. R&D is the
+engine, which will drive our journey of moving up the pharmaceutical
+value chain. We are also investing in enhancing our product pipeline
+for emerging markets and other non-US developed markets.
+We continued to build our specialty pipeline during the year and
+simultaneously investing in developing the requisite front-end for this
+business in the US. We expect this trend to continue in future as well.
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+4
+in 26% growth in revenues. This growth was broad-based across
+emerging markets and was driven by improvement in underlying
+business supported by stable currencies.
+We recorded a steady 8% growth in our India formulations business,
+while our performance in emerging markets improved, resulting
+Our subsidiary Taro recorded 8% decline in overall revenues for the
+year. This decline was mainly driven by a difficult pricing environment
+in the US, resulting from increased competitive intensity and buying
+consortium pressures.
+BUILDING THE SPECIALTY BUSINESS
+3. During the year, Sun Pharma announced the launch of
+Gemcitabine InfuSMART in Europe. InfuSMART is a technology in
+which oncology products are developed in a ready-to-administer
+(RTA) bag. With the roll-out of Gemcitabine InfuSMART, Sun Pharma
+becomes world's first pharmaceutical company to manufacture and
+launch a licensed RTA oncology product.
+4. We also in-licensed ELEPSIA XRTM (Levetiracetam Extended
+Release tablets) from Sun Pharma Advanced Research Company
+Ltd. (SPARC). ELEPSIA XRTM was approved by the USFDA in March
+2015. However, in September 2015, SPARC received a complete
+response letter (CRL) from the USFDA rescinding its earlier approval,
+citing that the compliance status of the manufacturing facility of the
+Company at Halol was not acceptable on the date of approval. We
+are currently in the process of de-risking these filings by transferring
+them to alternate facilities.
+2 We also continued our investment in the development and
+commercialisation of tildrakizumab, which we had in-licensed from
+Merck in 2014. In May 2016, we announced positive results from
+the Phase-3 trials of tildrakizumab to treat chronic plaque psoriasis.
+Subsequently, in July 2016, we announced a licensing agreement
+with Almirall S.A. (Spain) for the development and commercialisation
+of tildrakizumab for psoriasis in Europe. In March 2017, Sun Pharma
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+6
+During the year, we also had a re-inspection of the Mohali facility
+by the USFDA. Post the completion of the re-inspection, the USFDA
+informed Sun Pharma that it will be lifting the import alert imposed
+on Sun Pharma's Mohali manufacturing facility and remove the
+facility from the Official Action Initiated (OAI) status. This has
+cleared the path for Sun Pharma to supply approved products from
+the Mohali facility to the US market, as well as make this facility
+available for future filings. The Mohali facility was inherited by Sun
+Pharma as part of its acquisition of Ranbaxy Laboratories Ltd. in
+2015. The USFDA had acted against the Mohali facility in 2013,
+when it ordered the facility to be fully subject to Ranbaxy's Consent
+Decree of permanent injunction. Certain conditions of the Consent
+Decree will continue to be applicable to the Mohali facility even
+after the lifting of the import alert. This development illustrates Sun
+Pharma's commitment to work closely with the USFDA and strive for
+100% cGMP compliance at its manufacturing facilities.
+Our Halol facility, which was impacted by cGMP deviations in FY15,
+underwent a re-inspection by the USFDA in November 2016. On
+completion of the re-inspection, the USFDA issued nine observations
+for the facility. While none of these are repeat observations,
+compared to those issued for the September 2014 inspection, we will
+need to remediate these nine observations also. We are currently in
+the process of implementing the requisite remediation steps. New
+approvals from this facility will continue to be on hold till we have a
+successful re-inspection.
+WE ARE ENTERING
+THE THIRD AND THE
+MOST IMPORTANT YEAR
+OF INTEGRATION OF
+RANBAXY INTO SUN
+PHARMA. THE SYNERGY
+BENEFITS FROM THIS
+INTEGRATION ARE
+REFLECTED IN OUR
+FINANCIALS IN FY17 AND
+WE EXPECT TO BUILD
+FURTHER ON THESE
+SYNERGY BENEFITS IN
+FY18. WE CONTINUE TO
+TARGET US$ 300 MILLION
+IN SYNERGY BENEFITS
+FROM THIS ACQUISITION
+BY FY18.
+During the year, Sun Pharma made significant progress towards
+24x7 cGMP compliance. Many of our facilities underwent successful
+audits by multiple regulatory agencies, including the USFDA. At the
+same time, remediation work continued at some of the facilities,
+which have been impacted by cGMP deviations.
+Given the stringent cGMP requirements of global regulators,
+pharmaceutical companies need to focus on 24x7 compliance status.
+Ability to successfully adhere to these cGMP standards has become a
+key determinant of future for the pharmaceutical industry.
+GLOBAL CGMP COMPLIANCE
+We are entering the third and the most important year of integration
+of Ranbaxy into Sun Pharma. The synergy benefits from this
+integration are reflected in our financials in FY17 and we expect
+to build further on these synergy benefits in FY18. We continue
+to target US$ 300 Million in synergy benefits from this acquisition
+by FY18 and are on track to achieve this significant milestone. The
+synergy benefits will arise from both revenue and cost synergies and
+will be driven by the combined technology capabilities, combined
+R&D pipeline and the global product portfolio.
+RANBAXY INTEGRATION
+7. During the year, we also entered into an exclusive worldwide
+licensing deal to further develop MM-II, a novel pharmaceutical
+candidate for the treatment of pain in osteoarthritis. MM-II is a
+novel non-opioid product that leverages the physical properties
+of proprietary liposomes to lubricate arthritic knee joints, thereby
+reducing friction and wear, consequently leading to joint pain
+reduction. The product is based on patent-protected technology
+licensed by Moebius Medical from the Hebrew University of
+Jerusalem, Technion Israel Institute of Technology and Hadassah
+Medical Centre.
+6. During the year, we also enhanced our specialty oncology
+portfolio through the acquisition of a branded oncology product,
+OdomzoⓇ, from Novartis. OdomzoⓇ (Sonidegib) was approved by
+the USFDA in July 2015. It is a hedgehog pathway inhibitor indicated
+for the treatment of adult patients with locally advanced basal cell
+carcinoma (laBCC) that has recurred following surgery or radiation
+therapy, or those who are not candidates for surgery or radiation
+therapy. OdomzoⓇ gives Sun Pharma an opportunity to meaningfully
+expand its already established branded dermatology business
+and support its expansion into branded oncology with a launched
+brand. This acquisition has the potential to leverage and expand the
+relationships that the Dusa sales team has with dermatologists that
+treat common pre-cancerous skin conditions.
+Xelpros™ and DexaSite™ this acquisition will enable Sun Pharma to
+significantly expand its ophthalmic presence and reach to millions of
+patients - globally. We expect to file this product with the USFDA by
+Q3FY18.
+PHARMA
+SUN
+5
+ANNUAL REPORT 2016-17
+5. In October 2016, Sun Pharma announced the acquisition of
+Ocular Technologies (Ocular), which gives us exclusive worldwide
+rights to Seciera™ (cyclosporine A, 0.09% ophthalmic solution)
+targeted at Dry Eye Disease. Subsequently, we announced successful
+Phase-3 confirmatory clinical trial results for Seciera™M. Coupled with
+Sun Pharma's existing ophthalmic portfolio consisting of BromSite™,
+JAPAN ENTRY
+Financial Position
+FY09 7.8
+8%
+23,138
+23,025
+(in Million)
+R&D INVESTMENTS
+19,550
+10,418
+7,042
+4,449
+FY11 3,313
+CARRYING VALUE OF PROPERTY, PLANT &
+EQUIPMENT AND OTHER INTANGIBLE ASSETS
+(in Million)
+2,242
+FY08 2,859
+60,827
+42,123
+FY09 44,808
+FY08 35,017
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+2
+FY12 29,295
+25,214
+FY093,320
+15,328
+45,145
+96,848
+FY08 15,509
+KEY PERFORMANCE
+INDICATORS (CONSOLIDATED)
+322,016
+PHARMA
+SUN
+291,453
+279,397
+166,326
+116,880
+49,827
+84,910
+(in Million)
+FY10 5.6
+FY08 6.4
+The Company has adopted Ind-AS accounting standards with effect from 1st April, 2015. Hence, FY16 onwards, the financials are reported as per Ind-AS and are not
+strictly comparable with previous years. For FY15, balance sheet items are as per Ind-AS.
+* During FY15, the Company's equity shares have increased to 2,406 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the Company,
+wherein 0.80 equity share of 1 each of the Company have been allotted to the shareholders of RLL for every 1.00 share of 5 each held by them.
+* During FY14, the Company issued bonus shares in the ratio of one equity share of 1/- for every share held.
+* During FY11, each equity share of 5/- was split into five equity shares of 1/- each.
+149,404
+124,130
+TOTAL INCOME
+FY09 18,780
+FY09 14,625
+WE ARE NOT JUST
+COMMITTED TO
+AUGMENTING OUR
+GROWTH AVENUES,
+PATIENT CARE REMAINS
+AT THE CORE OF OUR
+STRATEGY.
+04
+Ten Year Financial
+Highlights
+03
+Key Performance
+Indicators
+02
+CONTENTS
+PHARMA
+SUN
+GROWTH
+ENGINES
+Managing
+AUGMENTING
+SUN
+ENGINES
+GROWTH
+Reaching People. Touching Lives.
+SUN PHARMACEUTICAL INDUSTRIES LTD.
+2016-2017
+ANNUAL REPORT
+AUGMENTING
+8%
+PHARMA
+FY08 10,354
+Director's Letter
+Board's Report
+At the same time, we have ensured that our
+patients remain at the centre point of all our
+strategic initiatives. Our existing business
+of generics and branded generics is an
+integral part of the solution to lower global
+healthcare costs. Our specialty strategy
+focuses on improving patient outcomes
+either by targeting unmet medical needs or
+by enhancing patient convenience through
+differentiated dosage forms
+We are undergoing a gradual transformation
+as we continue to invest in enhancing our
+global specialty and complex generics
+pipeline. These investments will enable
+us to augment long-term growth avenues
+for future.
+We also continued to build our specialty
+pipeline; and invested in developing the
+requisite front-end for the US specialty
+business.
+During the year, we enhanced our R&D
+investments for developing complex
+generics and specialty products. These
+strategic investments will enable us to move
+up the pharmaceutical value chain. We are
+also investing in enhancing our product
+pipeline for emerging markets and other
+non-US developed markets.
+At Sun Pharma, we have consistently
+focused on augmenting the long-term
+growth drivers for the Company. As a
+part of this approach, we have added
+another growth engine to our business -
+the specialty business – which is gradually
+evolving for us. This is besides our existing
+growth engines of the generics and branded
+generics businesses.
+Consolidated Financial
+Statements
+170
+Management Discussion
+08
+32
+report focuses on the theme of 'Augmenting
+Growth Engines. It takes an abstract
+approach to illustrating multifaceted
+connections that come together to drive
+growth, which is representative of multiple
+growth engines.
+Reaching People. Touching Lives.
+SUN PHARMACEUTICAL INDUSTRIES LTD
+2016-2017
+ANNUAL REPORT
+Statements
+Standalone Financial
+80
+Corporate
+Governance
+62
+The cover design of this year's annual
+FY10 13,470
+and Analysis
+RESERVE & SURPLUS
+134
+a) Capital
+2,242
+3,320
+2,859
+R&D Expenditure
+minority interest)
+31,415 45,394 45,457 69,644
+29,831
+222
+26,567
+15,509
+Profit for the year (after
+80,195 112,999 160,804 273,920 284,870 315,784
+84,910 116,880 166,326 279,397 291,453 322,016
+44,808 42,123 60,827
+35,017
+Total Income
+57,279
+38,086
+34,606 43,751
+18,780 13,470 18,161
+159
+3,313 4,449
+236
+362
+7%
+FY11 18,161
+7%
+6%
+6%
+6%
+6%
+8%
+9%
+c) % of Turnover
+9,862 18,373 22,242 21,459
+6,616
+4,088
+3,077
+2,083
+3,098
+2,725
+b) Revenue (Excluding
+Depreciation)
+1,679
+783
+427
+Revenue from Operations
+Operating Performance
+7,042 10,418 19,550 23,025 23,138
+556 1,178
+FY16
+148,862
+26,567
+(in Million)
+NET PROFIT AFTER MINORITY INTEREST
+29.0
+18.9
+18.9
+13.1
+11.0
+29,831
+FY11 7.5
+(POST EXCEPTIONAL ITEMS)*
+ADJUSTED EARNING PER SHARE
+121,322
+FY11 93,798
+FY10 77,254
+FY09 69,414
+FY17
+FY08 48,879
+(in Million)
+(per share)
+183,178
+12.4
+278,009
+FY13
+31,415
+FY12
+FY11
+FY10
+FY09
+FY08
+Particular
+in Million
+CONSOLIDATED
+FY14
+FINANCIAL STATEMENTS 80-278
+FY15
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+69,644
+363,997
+45,457
+TEN YEAR FINANCIAL HIGHLIGHTS
+327,418
+45,394
+Others
+91.3
+Subsidiary company
+9,200.0
+35,480.0
+Repayment of borrowings
+53,590.4
+72,231.3
+Payment for buy-back of equity shares
+24.8
+Others
+Subsidiary company
+Others 20,000
+Cash flow from financing activities
+C.
+0.2
+36,392.0
+23,847.1
+Net cash generated by investing activities (B)
+394.3
+2,040.7
+0.0
+Subsidiary companies
+Dividend received from
+*in Million
+Payment for share buy-back expenses
+Year ended
+March 31, 2016
+Year ended
+March 31, 2017
+Proceeds from issue of equity shares on exercise of stock options / share application money received
+Proceeds from borrowings
+Net decrease in working capital demand loans
+166.8
+Tax on dividend
+(8.6)
+1,449.7
+FOR THE YEAR ENDED MARCH 31, 2017
+5.2
+1,380.5
+Cash and cash equivalents at the end of the year
+Effect of exchange differences on restatement of foreign currency cash and cash equivalents
+1,208.5
+1,380.5
+Cash and cash equivalents at the beginning of the year
+77.8
+Net increase in cash and cash equivalents (A+B+C)
+(23,680.3)
+(7,529.8)
+Finance costs (includes borrowing costs capitalised)
+Dividend paid
+(1,469.7)
+(7,216.8)
+(2,399.2)
+(3,644.9)
+(1,435.5)
+(1,800.0)
+(34.2)
+(6,750.0)
+(89,805.8)
+(42,431.5)
+(27,545.7)
+(17,219.9)
+Net cash used in financing activities (C)
+(74.7)
+STANDALONE CASH FLOW STATEMENT
+Payments for purchase of property, plant and equipment (including capital work-in-progress, intangible assets
+08-79
+Others
+4.8
+Subsidiary companies
+Received back/matured from
+(0.4)
+Given to a subsidiary company
+Loans/Inter corporate deposits
+144.5
+70.1
+Proceeds from disposal of property, plant and equipment and intangible assets
+and intangible assets under development)
+(5,639.4)
+0.4
+251.5
+(10,879.0)
+B.
+(12,544.9)
+(16,239.5)
+Net cash used in operating activities (A)
+(3,527.3)
+(7,788.9)
+Income tax paid (net of refund)
+(9,017.6)
+(8,450.6)
+Cash used in operations
+Note:
+(2,283.9)
+Cash flow from investing activities
+Purchase of investments
+Subsidiary companies
+(6.1)
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+94
+550.0
+165.8
+Interest received
+(0.2)
+Margin money placed
+(30.1)
+2,116.8
+13.7
+Fixed deposits matured
+Fixed deposits placed
+Bank balances not considered as cash and cash equivalents
+132,268.1
+176,366.3
+Others
+38,468.5
+32,318.4
+141.5
+Associate
+Subsidiary companies
+Proceeds from sale/redemption of investments
+(131,969.1)
+(176,388.7)
+Others
+0.0
+Associate Nil (Previous year 16,380)]
+(163.5)
+FINANCIAL STATEMENTS 80-278
+Cash and cash equivalents comprises of
+30
+In current accounts
+of Schedule II of the Companies Act, 2013. Leasehold
+improvements are depreciated over period of the lease
+agreement or the useful life, whichever is shorter.
+Depreciation methods, useful lives and residual values
+are reviewed at the end of each reporting period, with
+the effect of any changes in estimate accounted for on a
+prospective basis.
+e.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+98
+PHARMA
+SUN
+97
+ANNUAL REPORT 2016-17
+Depreciation is recognised so as to write off the cost
+of assets (other than freehold land and Capital work-
+in-progress) less their residual values on straight-line
+method over their useful lives as indicated in Part C
+Items of property, plant and equipment acquired through
+exchange of non-monetary assets are measured at fair
+value, unless the exchange transaction lacks commercial
+substance or the fair value of either the asset received or
+asset given up is not reliably measurable, in which case
+the acquired asset is measured at the carrying amount of
+the asset given up.
+An item of property, plant and equipment is derecognised
+upon disposal or when no future economic benefits are
+expected to arise from the continued use of the asset.
+Any gain or loss arising on the disposal or retirement of
+an item of property, plant and equipment is determined
+as the difference between the sales proceeds and the
+carrying amount of property, plant and equipment and is
+recognised in profit or loss.
+The estimated useful lives are as follows:
+When parts of an item of property, plant and equipment
+have different useful lives, they are accounted for as
+separate items (major components) of property, plant and
+equipment.
+Items of property, plant and equipment are stated in
+balance sheet at cost less accumulated depreciation and
+accumulated impairment losses, if any. Freehold land is
+not depreciated.
+Property, plant and equipment
+d.
+Operating segments are reported in a manner consistent
+with the internal reporting provided to the chief
+operating decision maker. The chief operating decision
+maker of the Company is responsible for allocating
+resources and assessing performance of the operating
+segments and accordingly is identified as the chief
+operating decision maker.
+Segment Reporting
+Non-monetary items that are measured in terms of
+historical cost in a foreign currency are not retranslated.
+exchange differences on transactions entered into
+in order to hedge certain foreign currency risks (see
+note 2.2.i below for hedging accounting policies).
+exchange differences on foreign currency
+borrowings relating to assets under construction
+for future productive use, which are included in
+the cost of those assets when they are regarded as
+an adjustment to interest costs on those foreign
+currency borrowings.
+On initial recognition, transactions in currencies other
+than the Company's functional currency (foreign
+currencies) are translated at exchange rates at the dates
+of the transactions. Monetary assets and liabilities
+denominated in foreign currencies at the reporting
+date are translated into the functional currency at the
+exchange rate at that date exchange differences arising
+on the settlement of monetary items or on translating
+monetary items at rates different from those at which
+they were translated on initial recognition during the
+period or in previous period are recognised in profit or
+loss in the period in which they arise except for:
+Foreign currency
+Based on the nature of products / activities of the
+Company and the normal time between acquisition of
+assets and their realisation in cash or cash equivalents,
+the Company has determined its operating cycle as
+twelve months for the purpose of classifications of its
+assets and liabilities as current and non-current.
+Operating Cycle
+Properties in the course of construction for production,
+supply or administrative purposes are carried at cost,
+less any recognised impairment loss. Cost includes
+professional fees and, for qualifying assets, borrowing
+costs capitalised in accordance with the Company's
+accounting policy. Such properties are classified to
+the appropriate categories of property, plant and
+equipment when completed and ready for intended use.
+Depreciation of these assets, on the same basis as other
+property assets, commences when the assets are ready
+for their intended use.
+C.
+Asset Category
+No. of Years
+(802.5)
+intangible asset arising from development is recognised if
+and only if all of the following have been demonstrated:
+development costs can be measured reliably;
+the product or process is technically and
+commercially feasible;
+Expenditure on research activities undertaken with the
+prospect of gaining new scientific or technical knowledge
+and understanding are recognised as an expense when
+incurred. Development activities involve a plan or design
+for the production of new or substantially improved
+products and processes. An internally-generated
+Research and development
+Intangible assets that are acquired by the Company and
+that have finite useful lives are measured at cost less
+accumulated amortisation and accumulated impairment
+losses, if any. Subsequent expenditures are capitalised
+only when they increase the future economic benefits
+embodied in the specific asset to which they relate.
+Intangible assets
+Software for internal use, which is primarily acquired
+from third-party vendors and which is an integral part
+of a tangible asset, including consultancy charges for
+implementing the software, is capitalised as part of the
+related tangible asset. Subsequent costs associated with
+maintaining such software are recognised as expense as
+incurred. The capitalised costs are amortised over the
+lower of the estimated useful life of the software and the
+remaining useful life of the tangible fixed asset.
+10
+2-5
+5-10
+Leasehold land
+Furniture and fixtures
+Vehicles
+operating lease
+15
+Plant and equipment given under
+3-20
+Plant and equipment
+30
+Buildings given under operating lease
+Buildings other than Factory Buildings
+Factory Buildings
+60
+60-99
+Office equipment
+b.
+a.
+FOR THE YEAR ENDED MARCH 31, 2017
+DILIP S. SHANGHVI
+Managing Director
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+SUNIL R. AJMERA
+Company Secretary
+UDAY V. BALDOTA
+Chief Financial Officer
+162.9
+1,380.5
+58.1
+1,449.7
+1,543.4
+5.5
+3.8
+1,534.1
+1,497.2
+4.2
+6.4
+1,507.8
+* in Million
+As at
+March 31, 2016
+SUDHIR V. VALIA
+Wholetime Director
+March 31, 2017
+Mumbai, May 26, 2017
+Partner
+RAJESH K. HIRANANDANI
+Chartered Accountants
+For DELOITTE HASKINS & SELLS LLP
+In terms of our report attached
+See accompanying notes 1 to 59 to the standalone financial statements
+Cash and cash equivalents in cash flow statement
+Less:- cash credit facilities included under loans repayable on demand in note 26
+Cash and cash equivalents (Refer Note 16)
+Cash on hand
+Cheques on hand
+As at
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 26, 2017
+95
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+96
+The Company has consistently applied the following accounting
+policies to all periods presented in these financial statements.
+Level 3 inputs are unobservable inputs for the asset or
+liability.
+Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the asset
+or liability, either directly or indirectly; and
+Level 1 inputs are quoted prices (unadjusted) in active
+markets for identical assets or liabilities that the entity
+can access at the measurement date;
+In addition, for financial reporting purposes, fair value
+measurements are categorised into Level 1, 2, or 3 based on the
+degree to which the inputs to the fair value measurements are
+observable and the significance of the inputs to the fair value
+measurement in its entirety, which are described as follows:
+Fair value is the price that would be received to sell an asset
+or paid to transfer a liability in an orderly transaction between
+market participants at the measurement date, regardless of
+whether that price is directly observable or estimated using
+another valuation technique. In estimating the fair value of
+an asset or a liability, the Company takes into account the
+characteristics of the asset or liability if market participants
+would take those characteristics into account when pricing
+the asset or liability at the measurement date. Fair value for
+measurement and/or disclosure purposes in these financial
+statements is determined on such a basis, except for share-
+based payment transactions that are within the scope of Ind
+AS 102, leasing transactions that are within the scope of Ind AS
+17, and measurements that have some similarities to fair value
+but are not fair value, such as net realisable value in Ind AS 2 or
+value in use in Ind AS 36.
+Historical cost is generally based on the fair value of the
+consideration given in exchange for goods and services.
+measured at the lower of their carrying amount and fair value
+less costs to sell; and (iii) defined benefit plans - plan assets
+that are measured at fair values at the end of each reporting
+period, as explained in the accounting policies below.
+The financial statements have been prepared on the historical
+cost basis, except for: (i) certain financial instruments that are
+measured at fair values at the end of each reporting period;
+(ii) Non-current assets classified as held for sale which are
+These financial statements for the year ended March 31, 2017
+are the first financial statements, the Company has prepared in
+accordance with Ind AS.
+2.2 Basis of preparation and presentation
+These are the Company's first Ind AS financial statements.
+Refer Note 52 for the details of first-time adoption exemptions
+availed by the Company.
+For all the periods up to the year ended March 31, 2016, the
+Company had prepared its financial statements in accordance
+with the requirements of previous GAAP, which includes
+Standards notified under the Companies (Accounting
+Standards) Rules, 2006 (as amended).
+These financial statements are separate financial statements
+of the Company (also called standalone financial statements).
+The Company has prepared financial statements for the year
+ended March 31, 2017 in accordance with Indian Accounting
+Standards (Ind AS) notified under the Companies (Indian
+Accounting Standards) Rules, 2015 (as amended) together
+with the comparative period data as at and for the year ended
+March 31, 2016. Further, the Company has prepared the
+opening balance sheet as at April 01, 2015 (the transition date)
+in accordance with Ind AS.
+2. Significant accounting policies
+2.1 Statement of compliance
+Sun Pharmaceutical Industries Limited ("the Company") is a
+public limited company incorporated and domiciled in India and
+has its listing on the BSE Limited and National Stock Exchange
+of India Limited. The addresses of its registered office and
+principal place of business are disclosed in the introduction
+to the annual report. The Company is in the business of
+manufacturing, producing, developing and marketing a
+wide range of branded and generic formulations and Active
+Pharmaceutical Ingredients (APIs). The Company has various
+manufacturing locations spread across the country with trading
+and other incidental and related activities extending to the
+global markets.
+1. General information
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+Balances with banks
+(1,167.4)
+SAILESH T. DESAI
+Wholetime Director
+1,761.4
+(i) Borrowings
+(b)
+Non-current liabilities
+(a) Financial liabilities
+Liabilities
+(1)
+2,071.2
+334.8
+236,123.2
+238,529.2
+218,907.0
+208,715.1
+Total equity
+216,500.4
+206,315.8
+22
+Other equity
+(c)
+(ii)
+Other financial liabilities
+Provisions
+24
+222
+Financial liabilities
+Current liabilities
+Total non-current liabilities
+(a)
+(2)
+34,660.0
+37,484.6
+59 (4)
+18,941.5
+18,251.3
+11,328.3
+25
+4.9
+19,228.4
+7,606.4
+6.8
+23
+11,653.6
+215.9
+22,790.5
+(i)
+(b) Share suspense account
+2,399.3
+54,217.9
+374,901.7
+342,664.6
+337,482.3
+7,502.9
+9,033.4
+53,162.6
+63,698.6
+TOTAL ASSETS
+Total current assets
+10,727.5
+20
+Other current assets
+(c)
+1,183.7
+215.9
+671.8
+90
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+21
+Equity share capital
+Equity
+EQUITY AND LIABILITIES
+(a)
+April 01, 2015
+in Million
+As at
+2,406.6
+March 31, 2016
+Notes
+As at
+As at
+AS AT MARCH 31, 2017
+STANDALONE BALANCE SHEET
+FINANCIAL STATEMENTS 80-278
+08-79
+March 31, 2017
+Borrowings
+26
+40,540.4
+STANDALONE STATEMENT OF PROFIT AND LOSS
+PHARMA
+SUN
+91
+ANNUAL REPORT 2016-17
+Mumbai, May 26, 2017
+SAILESH T. DESAI
+Wholetime Director
+SUDHIR V. VALIA
+Wholetime Director
+DILIP S. SHANGHVI
+Managing Director
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+SUNIL R. AJMERA
+Company Secretary
+UDAY V. BALDOTA
+Chief Financial Officer
+Mumbai, May 26, 2017
+Partner
+RAJESH K. HIRANANDANI
+FOR THE YEAR ENDED MARCH 31, 2017
+* in Million
+Notes
+Year ended
+March 31, 2017
+83,087.8
+83,211.1
+4,450.9
+5,144.1
+32
+78,636.9
+78,067.0
+Chartered Accountants
+31
+(III) Total income (I + II)
+Other income
+Revenue from operations
+(11)
+(1)
+March 31, 2016
+Year ended
+(IV) Expenses
+For DELOITTE HASKINS & SELLS LLP
+In terms of our report attached
+See accompanying notes 1 to 59 to the standalone financial statements
+1,738.0
+29
+Other current liabilities
+(b)
+34,291.4
+17,793.0
+28,135.4
+1,622.2
+28
+15,767.7
+17,724.5
+20,942.0
+27
+(ii) Trade payables
+42,375.6
+37,337.2
+(iii) Other financial liabilities
+19
+2,240.0
+Provisions
+374,901.7
+342,664.6
+337,482.3
+TOTAL EQUITY AND LIABILITIES
+136,372.5
+123,757.6
+128,767.2
+(c)
+101,712.5
+109,825.7
+Total liabilities
+Total current liabilities
+7,037.8
+11,796.1
+18,469.9
+30
+86,273.0
+Cost of materials consumed
+(vi) Other financial assets
+187.0
+10,533.2
+Capital work-in-progress
+(b)
+38,319.4
+3
+Property, plant and equipment
+(a)
+(1) Non-current assets
+ASSETS
+April 01, 2015
+As at
+in Million
+March 31, 2016
+March 31, 2017
+Notes
+35,163.4
+7,654.0
+31,187.3
+10,863.2
+(c)
+257,025.7
+222,445.2
+192,442.4
+5
+Investments in the nature of equity in subsidiaries
+(e)
+42.7
+As at
+23.3
+Intangible assets under development
+(d)
+699.8
+582.8
+484.6
+4
+Intangible assets
+453.9
+(f)
+As at
+STANDALONE BALANCE SHEET
+22.9 31st March,
+2015
+Managing Director
+Financial year
+ended
+Excess amount
+of remuneration
+paid (in Million)
+Managerial
+Position
+Charged to the Statement of We have been informed by the Management
+Profit and Loss
+of the Company that they have re-represented
+to the office of the Ministry of Corporate
+Steps taken by the Company for securing
+refund
+Treatment of the excess
+remuneration in the
+respective year standalone
+financial statements
+(xi) In our opinion and according to the information and explanations given to us, the Company has paid managerial remuneration in excess
+of the limits and approvals prescribed under Section 197 read with Schedule V to the Act, to the following managerial personnel:
+(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements' section of our report
+of even date to the Members of Sun Pharmaceutical Industries Limited)
+TO THE INDEPENDENT AUDITOR'S REPORT
+ANNEXURE "B"
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+12.3 31st March,
+Whole time
+Director(s)
+2016
+22.5 31st March,
+2017
+26.7 31st March,
+2015
+17.3 31st March,
+2016
+22.2 31st March,
+2017
+Profit and Loss
+PHARMA
+SUN
+89
+ANNUAL REPORT 2016-17
+Partner
+(Membership No. 36920)
+RAJESH K. HIRANANDANI
+(Firm's Registration No. 117366W/W-100018)
+AS AT MARCH 31, 2017
+Date: 26th May, 2017
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
+(xv) In our opinion and according to the information and explanations given to us, during the year, the Company has not entered into any
+non-cash transactions with its directors or directors of its subsidiary or associate company or persons connected with them and hence
+provisions of Section 192 of the Act are not applicable.
+(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible
+debentures and hence reporting under clause (xiv) of paragraph 3 of the Order is not applicable to the Company.
+(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Sections 177 and 188
+of the Act, where applicable, for all transactions with the related parties identified by the Management of the Company, and the details
+of related party transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting
+standards.
+(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of paragraph 3 of the Order is not applicable.
+Charged to the Statement of Affairs for approval of remuneration within
+Profit and Loss
+the overall limits approved by the members of
+Charged to the Statement of the Company for the years ended 31st March,
+Profit and Loss
+2015 and 31st March, 2016, and that for the
+Charged to the Statement of year ended 31st March, 2017, applications
+Profit and Loss
+for revision in the remuneration, as approved
+Charged to the Statement of by the members of the Company, has been
+Profit and Loss
+made to the Ministry of Corporate Affairs.
+Charged to the Statement of The responses in respect of the foregoing re-
+representation/applications for revision are
+awaited from the Ministry of Corporate Affairs.
+Refer Note 59(11) to the standalone Ind AS
+financial statements.
+Place: Mumbai
+Investments in the nature of equity in associates
+6
+21.2
+735.6
+400.1
+14
+Investments
+(i)
+Financial assets
+(b)
+21,892.5
+21,321.5
+22,866.2
+13
+Inventories
+(a)
+(2) Current assets
+320,683.8
+850.7
+(ii) Trade receivables
+15
+27,256.7
+138.2
+18
+Loans
+(v)
+2,232.6
+147.7
+130.3
+289,502.0
+17
+1,932.0
+1,543.4
+1,507.8
+16
+(iii) Cash and cash equivalents
+17,915.1
+19,978.1
+(iv) Bank balances other than (iii) above
+273,783.7
+Total non-current assets
+4,242.2
+Other financial assets
+(iii)
+160.5
+108.1
+48.5
+8
+(ii) Loans
+9
+898.7
+1,067.8
+7
+Investments
+(i)
+Financial assets
+(g)
+21.2
+514.9
+708.4
+990.0
+1,435.8
+3,590.9
+4,100.6
+12
+Other non-current assets
+6,589.7
+10,062.5
+17,826.3
+1,818.7
+11
+(i)
+7,517.0
+7,517.0
+7,517.0
+10
+Deferred tax assets (Net)
+(h)
+Income tax assets (Net)
+33
+22,845.2
+18,383.1
+7.5
+2,399.3
+Balance as at March 31, 2017
+Transfer on exercise of share options
+Transfer to capital redemption reserve on buy-back of equity shares
+(34.2)
+(6,750.0)
+24.8
+32.3
+(2,406.8)
+(74.7)
+(74.7)
+(2,406.8)
+(983.3)
+(26.6)
+(7.1)
+(7.5)
+54.8
+#0.0 36,660.0 11,894.6
+(54.8)
+26.4
+93
+ANNUAL REPORT 2016-17
+Mumbai, May 26, 2017
+Partner
+RAJESH K. HIRANANDANI
+Chartered Accountants
+For DELOITTE HASKINS & SELLS LLP
+(949.6)
+In terms of our report attached
+# (March 31, 2017: 7,177)
+* Represents remeasurements of defined benefit plans
+(26.6) 208,715.1
+16.0
+122,914.8
+7.5 34,779.3
+43.8
+See accompanying notes 1 to 59 to the standalone financial statements
+UDAY V. BALDOTA
+Chief Financial Officer
+SUNIL R. AJMERA
+Company Secretary
+(633.8)
+(7.1)
+32.3
+Recognition of share-based payments to employees
+Corporate dividend tax
+Payment of dividend
+Total comprehensive income for the year
+91.2
+98.8
+98.8
+(1,469.7)
+(1,469.7)
+(7,219.5)
+(7,219.5)
+(11,123.0)
+18.9
+(11,141.9)
+Issue of equity shares
+Buy-back of equity shares [Refer Note 59(13)]
+0.2
+(7.5)
+(6.7)
+*(600.1)
+(349.5)
+(349.5)
+218,907.0
+23.1
+126,353.4
+34,779.3
+(26.6)
+43.8
+132.0
+18,585.2
+36,660.0
+6.7
+750.0
+(750.0)
+31.3
+(6,742.5)
+(34.2)
+Expenditure on buy-back of equity shares
+(132.0)
+48.9
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+SUDHIR V. VALIA
+Wholetime Director
+122.9
+165.4
+Provision in respect of losses of a subsidiary
+0.0
+Impairment of non-current investment in associate [* Nil (Previous year 16,380)]
+90.6
+30.8
+Expense recognised in respect of share based payments to employees
+(50.0)
+(25.4)
+Sundry balances written back, net
+1,232.1
+38.5
+Provision/write off for doubtful trade receivables/advances
+(120.3)
+Net unrealised foreign exchange gain
+Operating loss before working capital changes
+Movements in working capital:
+(Increase)/decrease in inventories
+3,378.9
+(1,681.8)
+(1,815.4)
+(3,049.6)
+(6,802.7)
+570.9
+(1,544.7)
+(3,242.2)
+(3,167.2)
+(726.3)
+(2.387.3)
+Decrease in provisions
+Increase/(decrease) in other liabilities
+Increase in trade payables
+Increase in other assets
+Increase in trade receivables
+(871.2)
+(2,307.8)
+(178.2)
+(186.0)
+Depreciation and amortisation expense
+Adjustments for:
+(10,820.6)
+(324.4)
+Loss before tax
+Cash flow from operating activities
+A.
+4,185.6
+Year ended
+March 31, 2016
+Year ended
+*in Million
+FOR THE YEAR ENDED MARCH 31, 2017
+STANDALONE CASH FLOW STATEMENT
+PHARMA
+SUN
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 26, 2017
+March 31, 2017
+(247.9)
+4,642.5
+701.3
+(5.7)
+(16.1)
+(394.5)
+(2,040.7)
+(362.4)
+(229.3)
+Gain on sale of investment in associate
+Impairment of property, plant and equipment and intangible assets (disclosed as an exceptional item)
+Loss on sale/write off of property, plant and equipment and intangible assets, net
+Gain on sale of investment in subsidiary
+Dividend income
+Interest income
+5,741.0
+2,235.6
+Finance costs
+82.3
+110.2
+Net gain arising on financial assets measured at fair value through profit or loss
+Gain on sale of financial assets measured at fair value through profit or loss
+18.9
+*(266.8)
+(10,875.1)
+Earnings per equity share (face value per equity share - ₹1)
+(XI) Total comprehensive income for the year (IX+X)
+Total other comprehensive income (A+B)
+instruments in a cash flow hedge - (B)
+Effective portion of gains and loss on designated portion of hedging
+Items that may be reclassified to profit or loss
+B)
+Total - (A)
+Equity instruments through other comprehensive income
+b.
+Remeasurements of the defined benefit plans
+a.
+Items that will not be reclassified to profit or loss
+A)
+(X) Other comprehensive income
+Basic (in)
+Diluted (in)
+See accompanying notes 1 to 59 to the standalone financial statements
+In terms of our report attached
+47
+(247.9)
+(11,123.0)
+(983.3)
+(633.8)
+(26.6)
+(247.9)
+(607.2)
+(IX) Loss for the year (VII-VIII)
+18.9
+(266.8)
+(600.1)
+Mumbai, May 26, 2017
+Partner
+RAJESH K. HIRANANDANI
+Chartered Accountants
+For DELOITTE HASKINS & SELLS LLP
+(7.1)
+(10,875.1)
+(349.5)
+54.5
+Depreciation and amortisation expense
+5,741.0
+2,235.6
+36
+Finance costs
+14,766.9
+14,861.7
+3&4
+35
+(143.8)
+(1,627.9)
+34
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+11,700.0
+12,365.0
+Purchases of stock-in-trade
+Employee benefits expense
+(0.1)
+(0.1)
+4,185.6
+Other expenses
+(701.3)
+(10,820.6)
+(324.4)
+25.1
+39
+(VIII) Tax expense - current tax
+(VII) Loss before tax (V + VI)
+59 (3)
+(VI) Exceptional item
+4,642.5
+(10,119.3)
+(V) Loss before exceptional item and tax (III - IV)
+93,207.1
+83,535.5
+Total expenses (IV)
+38,117.4
+28,670.3
+37
+(324.4)
+7.0
+(4.5)
+UDAY V. BALDOTA
+Chief Financial Officer
+232.9
+(142.3)
+0.6
+Issue of equity shares
+Recognition of share-based payments to employees
+Corporate dividend tax
+Payment of dividend
+Total comprehensive income for the year
+Other comprehensive income for the year
+Loss for the year
+Balance as at April 01, 2015
+hedges
+through OCI
+reserve
+cash flow
+Issue of equity shares pursuant to the scheme of amalgamation [Refer Note 59 (4)]
+Transfer from debenture redemption reserve on repayment of debentures
+334.8
+(334.8)
+Transfer on exercise of share options
+238,529.2
+(10,875.1)
+4.2
+146,184.5
+34,029.3
+43.8
+82.1
+Total
+750.0
+149.0 36,660.0
+334.8
+2,071.2
+Other comprehensive income for the year
+Loss for the year
+2,406.6
+Balance as at March 31, 2016
+18,220.3
+portion of
+Effective
+Other comprehensive
+income (OCI)
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+01-07
+CORPORATE OVERVIEW
+* in Million
+FOR THE YEAR ENDED MARCH 31, 2017
+Share suspense
+STATEMENT OF CHANGES IN EQUITY
+92
+Mumbai, May 26, 2017
+future economic benefits are probable; and
+SUDHIR V. VALIA
+Wholetime Director
+DILIP S. SHANGHVI
+Managing Director
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+SUNIL R. AJMERA
+Company Secretary
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+(4.5)
+Other equity
+Reserves and surplus
+Share
+Equity
+instrument
+General Retained
+reserve earnings
+reserve
+Capital
+redemption
+Amalgamation
+Share options
+outstanding
+account
+reserve
+Equity
+share
+reserve
+Securities Debenture
+premium redemption
+money pending Capital
+allotment
+59 (4)]
+capital
+[Refer Note
+application
+account
+reserve
+the Company intends to and has sufficient
+resources to complete development and to use or
+sell the asset.
+ANNUAL REPORT 2016-17
+Payments to third parties that generally take the form
+of up-front payments and milestones for in-licensed
+products, compounds and intellectual property are
+capitalised since the probability of expected future
+economic benefits criterion is always considered to be
+satisfied for separately acquired intangible assets.
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable
+to preparing the asset for its intended use. Other
+development expenditure is recognised in profit or loss as
+incurred.
+Acquired research and development intangible assets
+which are under development, are recognised as In-
+Process Research and Development assets ("IPR&D").
+IPR&D assets are not amortised, but evaluated for
+potential impairment on an annual basis or when there
+are indications that the carrying value may not be
+recoverable. Any impairment charge on such IPR&D
+assets is recognised in profit or loss. Intangible assets
+relating to products under development, other intangible
+assets not available for use and intangible assets having
+indefinite useful life are tested for impairment annually,
+or more frequently when there is an indication that the
+assets may be impaired. All other intangible assets are
+tested for impairment when there are indications that the
+carrying value may not be recoverable.
+The consideration for acquisition of intangible asset
+which is based on reaching specific milestone that
+are dependent on the Company's future activity is
+Leases
+Dividend distribution to equity holders of the Company
+The Company recognises a liability to make dividend
+distributions to equity holders of the Company when the
+distribution is authorised and the distribution is no longer
+at the discretion of the Company. As per the corporate
+laws in India, a distribution is authorised when it is
+approved by the shareholders. A corresponding amount
+is recognised directly in equity.
+Own equity instruments that are reacquired (treasury
+shares) are deducted from equity. No gain or loss is
+recognised in profit or loss on the purchase, sale, issue or
+cancellation of the Company's own equity instruments.
+Consideration paid or received shall be recognised
+directly in equity.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+A lease that transfers substantially all the risks and
+rewards incidental to ownership to the lessee is classified
+as a finance lease. All other leases are classified as
+operating leases.
+j.
+104 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+The Company has created an Employee Benefit
+Trust (EBT) for providing share-based payment to its
+employees. The Company uses EBT as a vehicle for
+distributing shares to employees under the employee
+remuneration schemes. The Company treats EBT as its
+extension and shares held by EBT are treated as treasury
+shares.
+Treasury shares
+If the hedging instrument expires or is sold,
+terminated or exercised or if its designation as a
+hedge is revoked, or when the hedge no longer
+meets the criteria for hedge accounting, any
+cumulative gain or loss previously recognised in
+OCI remains separately in equity until the forecast
+transaction occurs or the foreign currency firm
+commitment is met. When a forecast transaction
+is no longer expected to occur, the gain or loss
+accumulated in equity is recognised immediately in
+profit or loss.
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+Company as a lessee
+which such benefits accrue. Contingent rentals arising
+under operating leases are also recognised as expenses in
+the periods in which they are incurred.
+Operating lease payments are generally recognised as
+an expense in the profit or loss on a straight-line basis
+over the lease term. Where the rentals are structured
+solely to increase in line with expected general inflation
+to compensate for the lessor's expected inflationary cost
+increases, such increases are recognised in the year in
+I.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 105
+Finance leases are capitalised at the commencement of
+the lease at the inception date fair value of the leased
+property or, if lower, at the present value of the minimum
+lease payments. The corresponding liability to the
+lessor is included in the balance sheet as a finance lease
+obligation. Lease payments are apportioned between
+finance charges and reduction of the lease liability so as
+to achieve a constant rate of interest on the remaining
+balance of the liability. Finance charges are recognised
+in profit or loss as finance costs, unless they are directly
+attributable to qualifying assets, in which case they are
+capitalised in accordance with the Company's general
+policy on the borrowing costs. Contingent rentals are
+recognised as expenses in the periods in which they are
+incurred.
+Net realisable value is the estimated selling price in the
+ordinary course of business, less the estimated costs of
+completion and costs necessary to make the sale.
+Inventories
+k.
+Amounts due from lessees under finance leases are
+recorded as receivables at the Company's net investment
+in the leases. Finance lease income is allocated to
+accounting periods so as to reflect a constant periodic
+rate of return on the Company's net investment
+outstanding in respect of the leases.
+Rental income from operating lease is generally
+recognised on a straight-line basis over the term of the
+relevant lease. Where the rentals are structured solely
+to increase in line with expected general inflation to
+compensate for the Company's expected inflationary cost
+increases, such increases are recognised in the year in
+which such benefits accrue. Initial direct costs incurred in
+negotiating and arranging an operating lease are added to
+the carrying amount of the leased asset and recognised
+over the lease term on the same basis as rental income.
+Contingent rents are recognised as revenue in the period
+in which they are earned.
+Company as a lessor
+The effective portion of changes in the fair value
+of the hedging instrument is recognised in OCI in
+the cash flow hedge reserve, while any ineffective
+portion is recognised immediately in profit or loss.
+The Company uses forward currency contracts
+as hedges of its exposure to foreign currency risk
+in forecast transactions and firm commitments.
+Amounts recognised as OCI are transferred
+to profit or loss when the hedged transaction
+affects profit or loss, such as when a forecast sale
+occurs. When the hedged item is the cost of a
+non-financial asset or non-financial liability, the
+amounts recognised as OCI are transferred to the
+initial carrying amount of the non-financial asset or
+liability.
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade and finished
+goods are measured at the lower of cost and net
+realisable value. The cost of all categories of inventories
+is based on the weighted average method. Cost of raw
+materials and packing materials and stock-in-trade
+comprises cost of purchases. Cost of work-in-progress
+and finished goods comprises direct material, direct
+labour and an appropriate proportion of variable and
+fixed overhead expenditure, the latter being allocated
+on the basis of normal operating capacity. Cost of
+inventories also include all other costs incurred in
+bringing the inventories to their present location and
+condition.
+Cash flow hedges
+Fair value hedges
+Cash and cash equivalents
+Reclassification of financial assets
+Derivatives embedded in non-derivative host contracts
+that are not financial assets within the scope of Ind
+AS 109 are accounted for as separate derivatives and
+recorded at fair value if their economic characteristics
+and risks are not closely related to those of the host
+contracts and the host contracts are not held for trading
+or designated at fair value though profit or loss. These
+embedded derivatives are measured at fair value with
+changes in fair value recognised in profit or loss, unless
+designated as effective hedging instruments.
+Embedded derivatives
+A financial liability is derecognised when the obligation
+under the liability is discharged or cancelled or expires.
+When an existing financial liability is replaced by another
+from the same lender on substantially different terms,
+or the terms of an existing liability are substantially
+modified, such an exchange or modification is treated
+as the derecognition of the original liability and the
+recognition of a new liability. The difference between the
+carrying amount of the financial liability derecognised
+and the consideration paid and payable is recognised in
+profit or loss.
+Derecognition
+Financial guarantee contracts are those contracts that
+require a payment to be made to reimburse the holder
+for a loss it incurs because the specified debtor fails to
+make a payment when due in accordance with the terms
+of a debt instrument. Financial guarantee contracts are
+recognised initially as a liability at fair value and if not
+designated as at FVTPL, are subsequently measured at
+the higher of the amount of loss allowance determined
+as per impairment requirements of Ind AS 109 and the
+amount initially recognised less cumulative amount of
+income recognised.
+The Company determines classification of financial
+assets and liabilities on initial recognition. After initial
+recognition, no reclassification is made for financial
+assets which are equity instruments and financial
+liabilities. For financial assets which are debt instruments,
+a reclassification is made only if there is a change in the
+business model for managing those assets. Changes to
+the business model are expected to be infrequent. The
+Company's senior management determines change in the
+business model as a result of external or internal changes
+which are significant to the Company's operations. Such
+changes are evident to external parties. A change in
+the business model occurs when the Company either
+begins or ceases to perform an activity that is significant
+to its operations. If the Company reclassifies financial
+assets, it applies the reclassification prospectively from
+the reclassification date which is the first day of the
+immediately next reporting period following the change
+in business model. The Company does not restate any
+previously recognised gains, losses (including impairment
+gains or losses) or interest.
+Financial guarantee contracts
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using the
+EIR method. Amortised cost is calculated by taking into
+account any discount or premium on acquisition and
+fees or costs that are an integral part of the EIR. The EIR
+amortisation is included as finance costs in the profit or
+Financial liabilities that are not held-for-trading and are
+not designated as at FVTPL are measured at amortised
+cost in subsequent accounting periods. The carrying
+amounts of financial liabilities that are subsequently
+measured at amortised cost are determined based on
+the effective interest rate (EIR) method. Interest expense
+that is not capitalised as part of costs of an asset is
+included in the 'Finance costs' line item in the profit or
+loss.
+Financial liabilities subsequently measured at amortised
+cost
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+loss.
+Changes in fair value of the designated portion of
+derivatives that qualify as fair value hedges are
+recognised in profit or loss immediately, together
+with any changes in the fair value of the hedged
+asset or liability that are attributable to the hedged
+risk.
+Derivative financial instruments and hedge accounting
+Initial recognition and subsequent measurement
+ANNUAL REPORT 2016-17
+(ii)
+(i)
+Hedges that meet the strict criteria for hedge accounting
+are accounted for, as described below:
+At the inception of a hedge relationship, the Company
+formally designates and documents the hedge
+relationship to which the Company wishes to apply
+hedge accounting and the risk management objective and
+strategy for undertaking the hedge. The documentation
+includes the Company's risk management objective and
+strategy for undertaking hedge, the hedging/economic
+relationship, the hedged item or transaction, the nature
+of the risk being hedged, hedge ratio and how the entity
+will assess the effectiveness of changes in the hedging
+instrument's fair value in offsetting the exposure to
+changes in the hedged item's fair value or cash flows
+attributable to the hedged risk. Such hedges are expected
+to be highly effective in achieving offsetting changes in
+fair value or cash flows and are assessed on an ongoing
+basis to determine that they actually have been highly
+effective throughout the financial reporting periods for
+which they were designated.
+Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable to
+a particular risk associated with a recognised asset
+or liability or a highly probable forecast transaction
+or the foreign currency risk in an unrecognised firm
+commitment
+Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+The Company uses derivative financial instruments,
+such as forward currency contracts, full currency swap,
+options and interest rate swaps to hedge its foreign
+currency risks and interest rate risks respectively. Such
+derivative financial instruments are initially recognised
+at fair value on the date on which a derivative contract
+is entered into and are subsequently re-measured at fair
+value at the end of each reporting period. Derivatives are
+For the purpose of hedge accounting, hedges are classi-
+fied as:
+carried as financial assets when the fair value is positive
+and as financial liabilities when the fair value is negative.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+103
+Any gains or losses arising from changes in the fair value
+of derivatives are taken directly to profit or loss, except
+for the effective portion of cash flow hedges, which is
+recognised in OCI and later reclassified to profit or loss
+when the hedge item affects profit or loss or treated
+as basis adjustment if a hedged forecast transaction
+subsequently results in the recognition of a non-financial
+asset or non-financial liability.
+m.
+For the purpose of the statement of cash flows, cash and
+cash equivalents consist of cash and short-term deposits,
+as defined above, net of outstanding bank overdrafts as
+they are considered an integral part of the Company's
+cash management.
+08-79
+p.
+item, it is recognised as income on a systematic basis
+over the periods that the related costs, for which it is
+intended to compensate, are expensed. When the grant
+relates to an asset, it is recognised as deferred revenue
+in the balance sheet and transferred to profit or loss on
+a systematic basis over the expected useful life of the
+related asset.
+Employee benefits
+Defined benefit plans
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method with
+actuarial valuations being carried out at the end of each
+annual reporting period. The present value of the defined
+benefit obligation is determined by discounting the
+estimated future cash outflows by reference to market
+yields at the end of the reporting period on government
+bonds. The currency and term of the government bonds
+shall be consistent with the currency and estimated term
+of the post-employment benefit obligations. The current
+service cost of the defined benefit plan, recognised in
+the profit or loss as employee benefits expense, reflects
+the increase in the defined benefit obligation resulting
+from employee service in the current year, benefit
+changes, curtailments and settlements. Past service
+costs are recognised in profit or loss in the period of
+a plan amendment. The net interest cost is calculated
+by applying the discount rate to the net balance of the
+defined benefit obligation and the fair value of plan
+assets. This cost is included in employee benefit expense
+in profit or loss. Actuarial gains and losses arising
+from experience adjustments and changes in actuarial
+assumptions are charged or credited to OCI in the
+period in which they arise and is reflected immediately in
+retained earnings and is not reclassified to profit or loss.
+Termination benefits
+Termination benefits are recognised as an expense at
+the earlier of the date when the Company can no longer
+withdraw the offer of those benefits and when the
+entity recognises costs for a restructuring that is within
+the scope of Ind AS 37 and involves the payment of
+termination benefits.
+Short-term and Other long-term employee benefits
+A liability is recognised for benefits accruing to
+ANNUAL REPORT 2016-17
+107
+SUN
+PHARMA
+q.
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+employees in respect of wages and salaries, and casual
+leave in the period the related service is rendered at the
+undiscounted amount of the benefits expected to be paid
+in exchange for that service.
+108 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Minimum Alternate Tax ('MAT') credit is recognised as
+deferred tax asset only when and to the extent there is
+convincing evidence that the Company will pay normal
+income tax during the period for which the MAT credit
+can be carried forward for set-off against the normal tax
+liability. MAT credit recognised as an asset is reviewed at
+each Balance Sheet date and written down to the extent
+the aforesaid convincing evidence no longer exists.
+A deferred tax asset is recognised to the extent that it
+is probable that future taxable profits will be available
+against which the temporary difference can be utilised.
+Deferred tax assets are reviewed at each reporting date
+and are reduced to the extent that it is no longer probable
+that the related tax benefit will be realised. Withholding
+tax arising out of payment of dividends to shareholders
+under the Indian Income tax regulations is not considered
+as tax expense for the Company and all such taxes are
+recognised in the statement of changes in equity as part
+of the associated dividend payment.
+Deferred tax is measured at the tax rates that are
+expected to be applied to the temporary differences
+when they reverse, based on the laws that have been
+enacted or substantively enacted by the end of the
+reporting period. Deferred tax assets and liabilities are
+offset if there is a legally enforceable right to set off
+corresponding current tax assets against current tax
+liabilities and the deferred tax assets and deferred tax
+liabilities relate to income taxes levied by the same tax
+authority on the Company
+Deferred tax is recognised on temporary differences
+between the carrying amounts of assets and liabilities in
+the financial statements and the corresponding tax bases
+used in the computation of taxable profit.
+tax payable on the taxable profit for the year, using tax
+rates enacted or substantively enacted by the end of
+the reporting period, and any adjustment to tax payable
+in respect of previous years. Current tax assets and tax
+liabilities are offset where the Company has a legally
+enforceable right to offset and intends either to settle on
+a net basis, or to realise the asset and settle the liability
+simultaneously.
+The Company recognises government grants only
+when there is reasonable assurance that the conditions
+attached to them will be complied with, and the grants
+will be received. When the grant relates to an expense
+Income tax expense consists of current and deferred tax.
+Income tax expense is recognised in profit or loss except
+to the extent that it relates to items recognised in OCI or
+directly in equity, in which case it is recognised in OCI or
+directly in equity respectively. Current tax is the expected
+For cash-settled share-based payments, a liability is
+recognised for the goods or services acquired, measured
+initially at the fair value of the liability. At the end of
+each reporting period until the liability is settled, and
+at the date of settlement, the fair value of the liability is
+remeasured, with any changes in fair value recognised in
+profit or loss for the year.
+The grant date fair value of options granted to
+employees is recognised as an employee expense, with a
+corresponding increase in equity, on a straight line basis,
+over the vesting period, based on the Company's estimate
+of equity instruments that will eventually vest. At the
+end of each reporting period, the Company revises its
+estimate of the number of equity instruments expected
+to vest. The impact of the revision of the original
+estimates, if any, is recognised in profit or loss such that
+the cumulative expense reflects the revised estimate,
+with a corresponding adjustment to the equity-settled
+employee benefits reserve.
+Share-based payment arrangements
+The Company's contributions to defined contribution
+plans are recognised as an expense as and when the
+services are received from the employees entitling them
+to the contributions.
+Defined contribution plans
+The Company's net obligation in respect of other long
+term employee benefits is the amount of future benefit
+that employees have earned in return for their service
+in the current and previous periods. That benefit is
+discounted to determine its present value.
+Income tax
+Government grants
+Interest income from a financial asset is recognised when
+it is probable that the economic benefits will flow to the
+Company and the amount of income can be measured
+reliably. Interest income is accrued on a time basis,
+by reference to the principal outstanding and at the
+effective interest rate applicable, which is the rate that
+exactly discounts estimated future cash receipts through
+the expected life of the financial asset to that asset's net
+carrying amount on initial recognition.
+Dividend income is recognised when the Company's right
+to receive the payment is established, which is generally
+when shareholders approve the dividend.
+Revenue from sale of goods include excise duty and is
+measured at the fair value of the consideration received
+or receivable. Revenue is net of returns, sales tax,
+chargebacks, rebates and other similar allowances.
+Revenue
+Contingent Assets are not recognised in the financial
+statements.
+Present obligations arising from past events where
+it is not probable that an outflow of resources will
+be required to settle the obligation or a reliable
+estimate of the amount of the obligation cannot be
+made.
+Possible obligations which will be confirmed only by
+future events not wholly within the control of the
+Company, or
+(ii)
+Sale of goods
+(i)
+n.
+Onerous contracts
+A provision for restructuring is recognised when the
+Company has a detailed formal restructuring plan and
+has raised a valid expectation in those affected that it will
+carry out the restructuring by starting to implement the
+plan or announcing its main features to those affected
+by it. The measurement of a restructuring provision
+includes only the direct expenditure arising from the
+restructuring, which are those amounts that are both
+necessarily entailed by the restructuring and not
+associated with the ongoing activities of the entity.
+Restructuring
+Provisions are recognised when the Company has a
+present obligation (legal or constructive) as a result of
+past event, it is probable that an outflow of resources
+embodying economic benefits will be required to settle
+the obligation and a reliable estimate can be made of
+the amount of obligation. If the effect of the time value
+of money is material, provisions are determined by
+discounting the expected future cash flows at a pre-tax
+rate that reflects current market assessments of the
+time value of money and the risks specific to the liability.
+Where discounting is used, the increase in the provision
+due to the passage of time is recognised as a finance cost.
+Provisions, contingent liabilities and contingent
+assets
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+Cash and cash equivalent in the balance sheet comprise
+cash at banks and on hand and short-term deposits with
+an original maturity of three months or less, which are
+subject to an insignificant risk of changes in value.
+Revenue from sale of goods is recognised when the
+significant risks and rewards of ownership have been
+transferred to the buyer, usually on delivery of goods,
+it is probable that the economic benefit will flow the
+Company, the associated costs and possible return
+of goods can be estimated reliably, there is neither
+continuing management involvement to the degree
+usually associated with ownership nor effective control
+over the goods sold and the amount of revenue can be
+measured reliably.
+Sales Returns
+Dividend and interest income
+Royalty revenue is recognised on an accrual basis in
+accordance with the substance of the relevant agreement
+(provided that it is probable that economic benefits will
+flow to the Company and the amount of revenue can be
+measured reliably). Royalty arrangements that are based
+on production, sales and other measures are recognised
+by reference to the underlying arrangement.
+Royalties
+Revenue from services rendered is recognised in the
+profit or loss as the underlying services are performed.
+Upfront non-refundable payments received are deferred
+and recognised as revenue over the expected period over
+which the related services are expected to be performed.
+Rendering of Services
+price changes of competitive products, and the
+introduction of competitive new products, to the extent
+each of these factors impact the Company's business
+and markets. With respect to new products introduced
+by the Company, such products have historically been
+either extensions of an existing line of product where
+the Company has historical experience or in therapeutic
+categories where established products exist and are sold
+either by the Company or the Company's competitors.
+Provisions for chargeback, rebates, discounts and
+medicaid payments are estimated and provided for in the
+year of sales and recorded as reduction of revenue.
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+O.
+106 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+The Company accounts for sales returns accrual by
+recording an allowance for sales returns concurrent
+with the recognition of revenue at the time of a product
+sale. This allowance is based on the Company's estimate
+of expected sales returns. With respect to established
+products, the Company considers its historical experience
+of sales returns, levels of inventory in the distribution
+channel, estimated shelf life, product discontinuances,
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+Present obligations arising under onerous contracts
+are recognised and measured as provisions. An onerous
+contract is considered to exist where the Company has a
+contract under which the unavoidable costs of meeting
+the obligations under the contract exceed the economic
+benefit expected to be received from the contract.
+All financial assets are recognised initially at fair value
+plus, in the case of financial assets not recorded at fair
+value through profit or loss, transaction costs that are
+attributable to the acquisition of the financial asset.
+Purchases or sales of financial assets that require delivery
+of assets within a time frame established by regulation or
+convention in the market place (regular way trades) are
+recognised on the trade date.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Debt instruments included within the FVTOCI category
+are measured initially as well as at each reporting date
+at fair value. Fair value movements are recognised in
+the other comprehensive income (OCI). However, the
+Company recognises interest income, impairment losses
+& reversals and foreign exchange gain or loss in the profit
+or loss. On derecognition of the asset, cumulative gain
+or loss previously recognised in OCI is reclassified from
+the equity to profit or loss. Interest earned whilst holding
+FVTOCI debt instrument is reported as interest income
+using the EIR method.
+The contractual terms of the instrument give rise
+on specified dates to cash flows that are SPPI on the
+principal amount outstanding.
+b)
+The objective of the business model is achieved
+both by collecting contractual cash flows and selling
+the financial assets, and
+a)
+A 'debt instrument' is measured as at FVTOCI if both of
+the following criteria are met:
+Debt instrument at FVTOCI
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost
+is calculated by taking into account any discount or
+premium on acquisition and fees or costs that are an
+integral part of the EIR. The EIR amortisation is included
+in Other Income in the profit or loss. The losses arising
+from impairment are recognised in the profit or loss.
+Contractual terms of the asset give rise on specified
+dates to cash flows that are solely payments of
+principal and interest (SPPI) on the principal
+amount outstanding.
+The asset is held within a business model whose
+objective is to hold assets for collecting contractual
+cash flows, and
+b)
+a)
+A 'debt instrument' is measured at the amortised cost if
+both the following conditions are met:
+Debt instrument at FVTPL
+Debt instruments at amortised cost
+FVTPL is a residual category for debt instruments. Any
+debt instrument, which does not meet the criteria for
+categorisation as at amortised cost or as FVTOCI, is
+classified as at FVTPL.
+Equity instruments
+receive cash or another financial asset
+Trade receivables or any contractual right to
+d)
+The contractual rights to receive cash flows from
+the asset have expired, or
+Lease receivables under Ind AS 17
+c)
+Financial assets that are debt instruments and are
+measured as at FVTOCI
+Financial assets that are debt instruments, and are
+measured at amortised cost
+a)
+A financial asset (or, where applicable, a part of a financial
+asset or part of a group of similar financial assets) is
+primarily derecognised (i.e. removed from the Company's
+balance sheet) when:
+Derecognition
+In accordance with Ind AS 109, the Company applies
+expected credit loss (ECL) model for measurement and
+recognition of impairment loss on the following financial
+assets and credit risk exposure:
+Impairment of financial assets
+On derecognition of a financial asset in its entirety, the
+difference between the asset's carrying amount and the
+sum of the consideration received and receivable and the
+cumulative gain or loss that had been recognised in OCI
+and accumulated in equity is recognised in profit or loss if
+such gain or loss would have otherwise been recognised
+in profit or loss on disposal of that financial asset.
+When the Company has transferred its rights to receive
+cash flows from an asset or has entered into a pass-
+through arrangement, it evaluates if and to what extent
+it has retained the risks and rewards of ownership. When
+it has neither transferred nor retained substantially all
+of the risks and rewards of the asset, nor transferred
+control of the asset, the Company continues to recognise
+the transferred asset to the extent of the Company's
+continuing involvement. In that case, the Company also
+recognises an associated liability. The transferred asset
+and the associated liability are measured on a basis that
+reflects the rights and obligations that the Company has
+retained.
+assumed an obligation to pay the received cash
+flows in full without material delay to a third party
+under a 'pass-through' arrangement; and either (a)
+the Company has transferred substantially all the
+risks and rewards of the asset, or (b) the Company
+has neither transferred nor retained substantially
+all the risks and rewards of the asset, but has
+transferred control of the asset.
+Equity instruments included within the FVTPL category
+are measured at fair value with all changes recognised in
+the profit or loss.
+If the Company decides to classify an equity instrument
+as at FVTOCI, then all fair value changes on the
+instrument, including foreign exchange gain or loss and
+excluding dividends, are recognised in the OCI. There is
+no recycling of the amounts from OCI to profit or loss,
+even on sale of investment. However, the Company may
+transfer the cumulative gain or loss within equity.
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which are held
+for trading are classified as at FVTPL. For all other equity
+instruments, the Company may make an irrevocable
+election to present subsequent changes in the fair
+value in OCI. The Company makes such election on an
+instrument-by-instrument basis. The classification is
+made on initial recognition and is irrevocable.
+In addition, the Company may elect to designate a debt
+instrument, which otherwise meets amortised cost or
+FVTOCI criteria, as at FVTPL. However, such election
+is allowed only if doing so reduces or eliminates a
+measurement or recognition inconsistency (referred to as
+'accounting mismatch').
+e)
+Equity instruments measured at fair value through
+other comprehensive income (FVTOCI)
+Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+The carrying amounts of the Company's tangible and
+intangible assets are reviewed at each reporting date to
+determine whether there is any indication of impairment.
+If any such indication exists, then the asset's recoverable
+amount is estimated in order to determine the extent of
+the impairment loss, if any.
+Impairment of non-financial assets
+h.
+g.
+The Company has elected to recognise its investments
+in equity instruments in subsidiaries and associates at
+cost in the separate financial statements in accordance
+with the option available in Ind AS 27, 'Separate Financial
+Statements'. Impairment policy applicable on such
+investments is explained in Note 2.2.g.
+Investments in the nature of equity in subsidiaries
+and associates
+For transition to Ind AS, the Company has elected to
+continue with the carrying value of all of its intangible
+assets recognised as of April 01, 2015 i.e. transition date,
+measured as per the previous GAAP and use that carrying
+value as its deemed cost as of the transition date.
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits are
+expected from their use. Gain or loss arising on such
+de-recognition is recognised in profit or loss, and are
+measured as the difference between the net disposal
+proceeds, if any, and the carrying amount of respective
+intangible assets as on the date of de-recognition.
+De-recognition of intangible assets
+The estimated useful life and amortisation method are
+reviewed at the end of each reporting period, with the
+effect of any changes in estimate being accounted for on
+a prospective basis.
+The estimated useful life and the amortisation method
+for intangible assets with a finite useful life are reviewed
+at the end of each reporting period, with the effect of any
+changes in estimate being accounted for on a prospective
+basis.
+The estimated useful lives for Product related intangibles
+and Other intangibles ranges from 5 to 20 years.
+Amortisation is recognised on a straight-line basis over
+the estimated useful lives of intangible assets. Intangible
+assets that are not available for use are amortised from
+the date they are available for use.
+recognised only when the activity requiring the payment
+is performed.
+f.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+08-79 FINANCIAL STATEMENTS 80-278
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+The recoverable amount of an asset or cash-generating
+unit (as defined below) is the greater of its value in use
+and its fair value less costs to sell. In assessing value
+in use, the estimated future cash flows are discounted
+to their present value using a pre-tax discount rate
+that reflects current market assessments of the time
+value of money and the risks specific to the asset or the
+cash-generating unit for which the estimates of future
+cash flows have not been adjusted. For the purpose of
+impairment testing, assets are grouped together into the
+smallest group of assets that generates cash inflows from
+continuing use that are largely independent of the cash
+inflows of other assets or groups of assets (the "cash-
+generating unit").
+Debt instruments and equity instruments at fair
+value through profit or loss (FVTPL)
+An impairment loss is recognised in the profit or loss
+if the estimated recoverable amount of an asset or its
+cash generating unit is lower than its carrying amount.
+Impairment losses recognised in respect of cash-
+generating units are allocated to reduce the carrying
+amount of the other assets in the unit on a pro-rata basis.
+Non-current assets held for sale
+Debt instruments at amortised cost
+་
+For purposes of subsequent measurement, financial
+assets are classified in four categories:
+Subsequent measurement
+Initial recognition and measurement
+Financial assets
+A financial instrument is any contract that gives rise to
+a financial asset of one entity and a financial liability or
+equity instrument of another entity.
+Financial instruments
+Non-current assets (and disposal groups) classified as
+held for sale are measured at the lower of their carrying
+amount and fair value less costs to sell. Non-current
+assets are not depreciated or amortised.
+met only when the asset (or disposal group) is available
+for immediate sale in its present condition subject
+only to terms that are usual and customary for sales
+of such asset (or disposal group) and its sale is highly
+probable. Management must be committed to the sale,
+which should be expected to qualify for recognition
+as a completed sale within one year from the date of
+classification.
+i.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+100
+PHARMA
+SUN
+99
+ANNUAL REPORT 2016-17
+Non-current assets and disposal groups are classified as
+held for sale if their carrying amount will be recovered
+principally through a sale transaction rather than
+through continuing use. This condition is regarded as
+In respect of other asset, impairment losses recognised
+in prior periods are assessed at each reporting date
+for any indications that the loss has decreased or no
+longer exists. An impairment loss is reversed if there
+has been a change in the estimates used to determine
+the recoverable amount. An impairment loss is reversed
+only to the extent that the asset's carrying amount does
+not exceed the carrying amount that would have been
+determined, net of depreciation or amortisation, if no
+impairment loss had been recognised.
+The Company has transferred its rights to receive
+contractual cash flows from the asset or has
+b)
+ANNUAL REPORT 2016-17 101
+Loan commitments which are not measured as at
+FVTPL
+102 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Financial liabilities designated upon initial recognition at
+fair value through profit or loss are designated as such
+at the initial date of recognition, and only if the criteria
+in Ind AS 109 are satisfied. For non-held-for-trading
+financial liabilities designated as at FVTPL, fair value
+gains/losses attributable to changes in own credit risk
+are recognised in OCI, unless the recognition of the
+effects of changes in the liability's credit risk in OCI
+would create or enlarge an accounting mismatch in profit
+or loss, in which case these effects of changes in credit
+risk are recognised in profit or loss. These gains/loss are
+not subsequently transferred to profit or loss. All other
+changes in fair value of such liability are recognised in the
+statement of profit or loss.
+All financial liabilities are subsequently measured at
+amortised cost using the effective interest method or at
+FVTPL.
+Subsequent measurement
+All financial liabilities are recognised initially at fair value
+and, in the case of loans and borrowings and payables, net
+of directly attributable transaction costs.
+Initial recognition and measurement
+with the substance of the contractual arrangements
+and the definitions of a financial liability and an equity
+instrument.
+The component parts of compound financial instruments
+(convertible notes) issued by the Company are classified
+separately as financial liabilities and equity in accordance
+Compound financial instruments
+Repurchase of the Company's own equity instruments
+is recognised and deducted directly in equity. No gain
+or loss is recognised in profit or loss on the purchase,
+sale, issue or cancellation of the Company's own equity
+instruments.
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL when the
+financial liability is held for trading or is designated upon
+initial recognition as at fair value through profit or loss.
+Financial liabilities are classified as held for trading if they
+are incurred principally for the purpose of repurchasing
+in the near term or on initial recognition it is part of a
+portfolio of identified financial instruments that the
+Company manages together and has a recent actual
+pattern of short-term profit-taking. This category also
+includes derivative entered into by the Company that are
+not designated and effective as hedging instruments in
+hedge relationships as defined by Ind AS 109. Gains or
+losses on liabilities held for trading are recognised in the
+profit or loss.
+Equity instruments
+An equity instrument is any contract that evidences a
+residual interest in the assets of an entity after deducting
+all of its liabilities. Equity instruments issued by the
+Company are recognised at the proceeds received, net of
+direct issue costs.
+PHARMA
+FOR THE YEAR ENDED MARCH 31, 2017
+f) Financial guarantee contracts which are not
+measured as at FVTPL
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+The application of simplified approach does not require
+the Company to track changes in credit risk. Rather,
+it recognises impairment loss allowance based on
+lifetime ECLs at each reporting date, right from its initial
+recognition. As a practical expedient, the Company uses a
+provision matrix to determine impairment loss allowance
+on portfolio of its trade receivables. The provision matrix
+is based on its historically observed default rates over
+the expected life of the trade receivables and is adjusted
+for forward-looking estimates. At every reporting date,
+the historical observed default rates are updated and
+changes in the forward-looking estimates are analysed.
+Financial liabilities and equity instruments
+Classification as debt or equity
+Debt and equity instruments issued by the Company
+are classified as either financial liabilities or as equity
+in accordance with the substance of the contractual
+arrangements and the definitions of a financial liability
+and an equity instrument.
+The Company follows 'simplified approach' for
+recognition of impairment loss allowance on trade
+receivables or any contractual right to receive cash or
+another financial asset.
+SUN
+304.2
+4,019
+750
+18.3
+4,019
+18.3
+4,019
+18.3
+3.3
+750
+3.3
+750
+Limited
+Ordinary Shares of 100 Takas
+each fully paid
+434,469
+8,387,666
+36.5
+3.3
+304.2
+1.5
+304.2
+10,000
+0.1
+10,000
+0.1
+10,000
+Shares of 10 each fully paid
+Private Limited
+1.5
+50,000
+434,469
+50,000
+1.5
+50,000
+Shares of 10 each fully paid
+Faststone Mercantile Company
+Sun Pharma Laboratories Limited
+0.5
+April 01, 2015
+Quantity
+in Million
+8,387,666
+8,387,666
+36.5
+149
+36.5
+500 Mexican Pesos each fully
+paid
+OOO "Sun Pharmaceutical
+Industries" Limited
+Par value rouble stock fully paid
+5,250,000 Rouble (March 31,
+2016: 5,250,000 Rouble; April
+01, 2015: 5,250,000 Rouble)
+Green Eco Development Centre
+Limited
+Shares of 10 each fully paid
+Sun Pharma De Venezuela, C.A.
+Shares of Bolivars (Bs.F.) 100
+each, Bolivars (Bs.F.) 50 per
+share paid
+8.8
+8.8
+8.8
+SPIL DE Mexico S.A. DE CV
+700,000
+100,000
+1.0
+100,000
+1.0
+1,000
+0.5
+1,000
+0.1
+7.0
+434,469
+0.2
+0.2
+Share Application Money
+31.6
+31.6
+1,000
+31.6
+Sun Pharmaceutical Peru S.A.C.
+Ordinary Shares of Soles 10
+each fully paid
+149
+100
+0.0
+0.5
+149
+0.0
+[* 21,734 (March 31, 2016: *
+21,734; April 01, 2015:
+21,734)]
+Nominative and free Shares of
+100
+0.2
+100
+0.0
+112
+in accordance with the recent amendments made by
+International Accounting Standards Board (IASB) to IAS
+7, 'Statement of cash flows'. The amendment is applicable
+to the Company from April 01, 2017.
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+(239.0)
+(239.0)
+(239.0)
+Less: Impairment in value of
+investment
+250.1
+250.1 25,008,400
+250.1 25,008,400
+25,008,400
+11.1
+Shares of 10 each fully paid
+3.1
+Share Application Money
+54,031.5
+54,031.5 855,199,716
+54,031.5 855,199,716
+855,199,716
+Shares of USD 1 each fully paid
+Sun Pharma Holdings
+Vidyut Investments Limited
+0.1
+11.1
+Ranbaxy Drugs Limited
+5,473,340
+Ordinary Shares of Euro 100
+each fully paid
+Ranbaxy (Netherlands) B.V.
+535.2
+4,900
+535.2
+4,900
+535.2
+11.1
+4,900
+Gufic Pharma Limited
+31.0
+3,100,020
+31.0
+3,100,020
+31.0
+3,100,020
+Shares of 10 each fully paid
+Shares of 100 each fully paid
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+10,000
+10,000
+* in Million
+0.1
+10,000
+0.1
+10,000
+Shares of 10 each fully paid
+Neetnav Real Estate Private Limited
+Shares of 10 each fully paid
+Realstone Multitrade Private Limited
+Shares of 10 each fully paid
+in Million
+As at
+April 01, 2015
+Quantity
+10,000
+* in Million
+in Million
+As at
+March 31, 2017
+Quantity
+and Control of India
+Foundation for Disease Elimination
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+As at
+March 31, 2016
+Quantity
+0.1
+0.1
+0.1
+0.1
+10,000
+Shares of 10 each fully paid
+Softdeal Trading Company Private
+Limited
+0.1
+10,000
+163.6
+16,360,000
+10,000
+163.6
+Shares of 10 each fully paid
+Skisen Labs Private Limited
+0.1
+10,000
+0.1
+10,000
+0.1
+10,000
+16,360,000
+As at
+As at March 31, 2017
+in Million
+572.6 303.3
+386.7 31,187.3
+338.5 35,163.4
+661.1 340.2
+643.0 466.2
+19.4
+16.9 19,955.9
+16.4 22,300.0
+15.9 24,526.9
+548.6 11,097.2
+911.4
+As at March 31, 2017
+562.4 8,605.9
+555.5 10,410.6
+541.1
+As at March 31, 2016
+530.9
+As at April 01, 2015
+Carrying amount
+244.0 8,882.7
+268.6 150.6
+343.5 38,319.4
+Footnotes
+(i)
+(ii)
+INTANGIBLE ASSETS
+Note 4
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+110 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+7,175.4
+# Refer Note 49
+(vi) The Company has elected to measure all its property, plant and equipment at the previous GAAP carrying amount at the date of transition to Ind AS. Refer
+Note 52.
+The aggregate depreciation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.
+Freehold land includes land valued at 25.5 Million (As at March 31, 2016: 25.5 Million, As at April 01, 2015: 25.5 Million) pending registration in the
+name of the Company.
+For details of assets pledged as security refer Note 51.
+Borrowing cost capitalised during the year Nil (March 31, 2016: 62.1 Million).
+Buildings include * 8,620 (As at March 31, 2016: 8,620 ; As at April 01, 2015: 8,620) towards cost of shares in a co-operative housing society and
+also includes 1.1 Million (As at March 31, 2016: 1.1 Million; As at April 01, 2015: 1.1 Million) and 1,133.0 Million (As at March 31, 2016: *
+1,133.0 Million; As at April 01, 2015 : ₹ 1,133.0 Million) towards cost of non-convertible preference shares of face value of 10/- each and compulsorily
+convertible debentures of face value of 10,000/- each respectively in a company entitling the right of occupancy and use of premises.
+(v)
+(iv)
+(iii)
+@Refer Note 59 (3)
+1.0
+1,029.3
+13.8
+Eliminated on disposals of
+in profit or loss @
+124.9 4,420.2
+2.4 700.6
+139.6 101.4
+5.4
+0.7
+1.2
+3,603.1
+473.5
+0.5
+442.6
+218.6
+(0.1)
+Impairment losses recognised
+Depreciation expense
+As at April 01, 2015
+and impairment
+Accumulated depreciation
+(12.4) (371.0)
+587.5 47,202.1
+134.9 7,341.4
+465.0 40,231.7
+(6.4) (276.6)
+6.9
+Other than internally generated
+(37.3)
+(0.8) (12.3)
+As at March 31, 2017
+121.2 4,007.2
+(3.7) (192.8)
+126.5 5,068.3
+144.2 89.8
+129.7 95.9
+(5.3) (35.1)
+(148.7)
+Eliminated on disposals of
+assets
+3,284.8
+0.5
+(1.2)
+368.2
+Depreciation expense
+4,039.3
+0.5
+661.1
+6.9
+As at March 31, 2016
+assets
+(0.8) (52.5)
+6.9
+Following are the changes in the carrying value of intangible assets
+At cost or deemed cost
+As at April 01, 2015
+591.8
+Footnotes
+As at March 31, 2017
+As at March 31, 2016
+As at April 01, 2015
+Carrying amount
+As at March 31, 2017
+392.6
+108.0
+50.3
+(8.3)
+(8.3)
+Eliminated on disposals of assets
+178.4
+21.4
+157.0
+Amortisation expense
+222.5
+342.3
+28.9
+699.8
+120.3
+As at
+March 31, 2017
+Quantity
+Sun Pharmaceutical (Bangladesh)
+Sun Pharma De Mexico, S.A. DE C.V.
+Common Shares of no Face
+Value
+Sun Pharmaceutical Industries, Inc.
+Common shares of no par value
+SUN Farmaceutica do Brasil Ltda
+Quota of Capital Stock of Real
+1 each fully paid
+Equity instruments - Unquoted (At cost
+less impairment in value of investments,
+if any)
+INVESTMENTS IN THE NATURE OF EQUITY IN SUBSIDIARIES (NON-CURRENT)
+Note 5
+FOR THE YEAR ENDED MARCH 31, 2017
+462.5
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+SUN
+111
+ANNUAL REPORT 2016-17
+(i) The aggregate amortisation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.
+(ii) The Company has elected to measure all its Intangible assets at the previous GAAP carrying amount at the date of transition to Ind AS. Refer Note 52.
+@ Refer Note 59 (3)
+484.6
+107.5
+377.1
+582.8
+PHARMA
+As at
+March 31, 2016
+Quantity
+193.6
+(0.5)
+149.2
+656.1
+(3.2)
+(3.2)
+108.7
+41.2
+67.5
+699.8
+805.3
+108.0
+intangibles
+Total
+Computer Product related
+Software
+in Million
+Additions
+As at March 31, 2016
+Disposals
+Additions
+591.8
+As at March 31, 2016
+73.1
+81.7
+(0.5)
+Eliminated on disposals of assets
+0.7
+0.7
+Impairment losses recognised in profit or loss @
+222.3
+28.9
+193.4
+8.6
+Amortisation expense
+Accumulated amortisation and impairment
+39,877.3
+Disposals
+877.2
+157.8
+719.4
+(9.8)
+(9.8)
+As at April 01, 2015
+5,473,340
+39,875.8
+5,473,340
+744.2
+362.4
+381.8
+(183.1)
+(6.0)
+(177.1)
+(319.4)
+(32.9)
+(286.5)
+(3,357.0)
+437.9
+(3,794.9)
+in Million
+Closing balance
+March 31, 2016
+Recognised in
+profit or loss
+Opening balance
+April 01, 2015
+MAT credit entitlement
+Unabsorbed depreciation / carried forward losses
+Other assets
+Expenses claimed for tax purpose on payment basis
+Allowance for doubtful debts and advances
+Difference in carrying value and tax base of financial assets and liabilities
+Other liabilities
+Difference between written down value of property, plant and equipment and
+capital work-in-progress as per books of accounts and income tax
+Deferred tax (liabilities) / assets in relation to:
+DEFERRED TAX ASSETS (NET)
+Note 10
+FOR THE YEAR ENDED MARCH 31, 2017
+434.5
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+(57.3)
+3,128.3
+Closing balance
+March 31, 2017
+Recognised in
+profit or loss
+* in Million
+7,517.0
+7,517.0
+The unused tax credits will expire from financial year 2017-18 to financial
+year 2023-24 and unused tax losses will expire from financial year 2017-18 to
+financial year 2025-26.
+Deductible temporary differences
+Unused tax credits (MAT credit entitlement)
+Unabsorbed depreciation
+Tax losses (Capital in nature)
+Tax losses
+Deductible temporary differences, unused tax losses and unused tax
+credits for which no deferred tax assets have been recognised are
+attributable to the following:
+Opening balance
+April 01, 2016
+MAT credit entitlement
+Unabsorbed depreciation / carried forward losses
+Other assets
+Expenses claimed for tax purpose on payment basis
+Allowance for doubtful debts and advances
+Difference between written down value of property, plant and equipment and
+capital work-in-progress as per books of accounts and income tax
+Difference in carrying value and tax base of financial assets and liabilities
+Other liabilities
+Deferred tax (liabilities) / assets in relation to:
+7,517.0
+7,517.0
+306.9
+(7.0)
+313.9
+2,431.2
+(697.1)
+377.2
+(3,357.0)
+FINANCIAL STATEMENTS 80-278
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+Security deposits
+Deposits - Pledged with Government Authorities
+OTHER FINANCIAL ASSETS (NON-CURRENT)
+Note 9
+Unsecured, considered good
+Loans to related parties (Refer Note 53 & 54)
+Unsecured, considered good
+Secured, considered good
+Loans to employees/others
+LOANS (NON-CURRENT)
+Note 8
+934.5
+934.5
+934.5
+Aggregate amount of impairment in value of investments
+impairment
+1,739.7
+1,337.1
+1,337.1
+Aggregate amount of unquoted investments before
+93.5
+112.3
+665.2
+93.5
+Quantity * in Million
+Derivatives not designated as hedges
+08-79
+116 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+As at
+1,435.8
+1,818.7
+990.0
+1,011.5
+1,442.2
+611.5
+423.3
+1.0
+* in Million
+As at
+April 01, 2015
+As at
+March 31, 2016
+1.0
+375.5
+377.5
+March 31, 2017
+1.0
+As at
+4.4
+160.5
+108.1
+48.5
+4.4
+40.3
+115.8
+80.7
+23.0
+32.5
+16.0
+* in Million
+As at
+April 01, 2015
+March 31, 2016
+March 31, 2017
+As at
+(968.1)
+(4,325.1)
+(319.4)
+8,117.5
+7,041.7
+602.3
+298.0
+7,020.0
+Goods in transit
+Stock-in-trade
+Finished goods
+Work-in-progress
+Raw materials and packing materials
+Goods in transit
+Lower of cost and net realisable value
+* in Million
+As at
+April 01, 2015
+As at
+March 31, 2016
+March 31, 2017
+As at
+34.5
+4,242.2
+24.7
+3,590.9
+12.0
+4,100.6
+1,368.6
+2,827.6
+11.5
+2,467.4
+28.8
+1,070.0
+16.3
+1,154.0
+in Million
+As at
+April 01, 2015
+As at
+March 31, 2016
+2,918.3
+March 31, 2017
+323.4
+As at
+7,318.0
+8,440.9
+The cost of inventories recognised as an expense is disclosed in Notes 33, 34 and 37 and as purchases of stock-in-trade in the statement of profit and loss.
+(iii)
+For details of inventories pledged as security refer Note 51.
+(ii)
+Inventory write downs are accounted, considering the nature of inventory, ageing, liquidation plan and net realisable value. Write downs of inventories
+amounted to 7,863.9 Million (March 31, 2016: 7,503 Million; April 01, 2015: 7,007.1 Million). The changes in write downs are recognised as an
+expense in the statement of profit and loss.
+(i)
+21,892.5
+21,321.5
+22,866.2
+61.8
+1,388.5
+304.6
+386.7
+629.5
+Stores, spares and other materials
+440.3
+462.1
+61.0
+1,326.7
+379.3
+462.1
+4,191.4
+5,621.2
+6,053.2
+7,567.1
+7,229.3
+8,403.4
+7,644.0
+6,589.7
+10,062.5
+17,826.3
+78,498.4
+757.1
+24,900.1
+2,874.3
+As at
+April 01, 2015
+in Million
+As at
+March 31, 2016
+As at
+March 31, 2017
+7,517.0
+7,517.0
+7,517.0
+7,517.0
+292.3
+(14.6)
+306.9
+2,497.1
+65.9
+2,431.2
+801.7
+424.5
+377.2
+743.2
+(1.0)
+744.2
+(9.2)
+173.9
+(183.1)
+319.4
+67,846.5
+757.1
+19,897.1
+52,222.5
+757.1
+15,259.9
+25,892.5
+* in Million
+As at
+April 01, 2015
+6,589.7
+10,062.5
+March 31, 2016
+March 31, 2017
+17,826.3
+As at
+As at
+Note 13
+INVENTORIES
+Balances with government authorities
+Other assets
+Prepaid expenses
+Capital advances
+OTHER NON-CURRENT ASSETS
+Note 12
+April 01, 2015
+[Net of provisions 10,894.5 Million (March 31, 2016:
+* 10,894.5 Million; April 01, 2015: 10,894.5 Million)]
+INCOME TAX ASSETS (NET) (NON-CURRENT)
+Note 11
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 117
+99,018.5
+27,089.5
+3,689.5
+3,497.3
+28,057.5
+120,055.5
+132,922.4
+Advance income tax
+March 31, 2016
+Quantity in Million
+112.3
+As at
+As at
+Investments in subsidiaries
+INVESTMENTS (NON-CURRENT)
+Note 7
+* The shares of this entity are thinly traded and therefore, market price has not been considered for the purpose of assessment of impairment in the value of its
+non-current investment in Zenotech Laboratories Limited.
+541.9
+570.1
+Market value of quoted investment
+729.8
+21.2
+21.2
+21.2
+206,670
+21.2
+206,670
+2,463.5
+(2,463.5)
+2,463.5 16,127,293
+(2,463.5)
+2,463.5 16,128,078
+(2,463.5)
+16,128,078
+Ordinary Shares of Bahts 100 each fully paid
+Daiichi Sankyo (Thailand) Limited
+Unquoted
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+Zenotech Laboratories Limited *
+Quoted
+Preference shares - Unquoted
+Equity instruments - (At cost less impairment in value of
+investments, if any)
+Sun Pharma Laboratories Limited
+Ranbaxy Drugs Limited
+0.0
+250
+0.0
+250
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+400.0
+4,000,000
+400.0
+4,000,000
+400.0
+4,000,000
+Quantity in Million
+in Million
+April 01, 2015
+As at
+As at
+March 31, 2016
+Quantity
+* in Million
+Quantity
+As at
+March 31, 2017
+114
+2% Redeemable Preference Shares of $15 each fully
+paid at a premium of $35 per share
+Alkaloida Chemical Company Zrt.
+* 2,500 [March 31, 2016: 2,500; April 01, 2015:
+2,500]
+Shares of 10 each fully paid.
+10% Non-Convertible Redeemable Preference
+10% Non-Convertible, Non-Cumulative Redeemable
+Preference Shares of 100 each fully paid
+in Million
+As at
+April 01, 2015
+Quantity
+in Million
+8.3
+8.5 13,070,648
+8.6 13,070,648
+13,070,648
+Ordinary Shares of Naira 1
+each fully paid
+Ranbaxy Nigeria Limited
+36.9
+3,189,248
+37.0
+3,189,248
+37.0
+3,189,248
+Ordinary Shares of RM 1 each
+fully paid
+Ranbaxy Malaysia Sdn. Bhd.
+investment
+(4,709.1)
+(4,709.1)
+4,709.1
+4,709.1 24,117,250
+4,709.1 24,117,250
+(4,709.1)
+Less: Impairment in value of
+24,117,250
+Ordinary Shares of Euro 1 each
+fully paid
+Ranbaxy Pharmacie Generiques SAS
+39,868.0
+95,107.7
+95,100.0
+94,931.5
+Preference shares - Unquoted (At cost)
+As at
+March 31, 2016
+Quantity
+in Million
+As at
+March 31, 2017
+Quantity
+INVESTMENTS IN THE NATURE OF EQUITY IN ASSOCIATES (NON-CURRENT)
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Note 6
+PHARMA
+SUN
+113
+ANNUAL REPORT 2016-17
+4,948.1
+250
+257,025.7
+261,973.8
+4,948.1
+Aggregate amount of impairment in value
+of investments
+impairment
+222,445.2
+227,393.3
+192,442.4
+197,390.5
+Aggregate amount of investments before
+162,094.2
+127,345.2 2,565,593,148
+97,334.7 2,015,593,148
+1,540,593,148
+5% Optionally Convertible
+Preference Shares USD 1 each
+fully paid
+Sun Pharma Holdings
+4,948.1
+(3.4) (105.0)
+805.3 430.0
+51.4 108.1
+(15.5) (84.2)
+841.2 453.9
+0.0
+400.0
+Investments (non-current)
+[10,000 (March 31, 2016: 10,000; April
+01, 2015: 10,000)]
+National savings certificates
+Unquoted
+8.21% Bond of 1 each fully paid maturing
+June 23, 2026
+Government of Uttar Pradesh UDAY non -SLR bond
+Government of Rajasthan UDAY non -SLR bond
+8.39% Bond of 1 each fully paid maturing
+June 23, 2026
+8.21% Bond of 1 each fully paid maturing
+June 23, 2025
+Government of Rajasthan UDAY non-SLR bond
+8.01% Bond of 1 each fully paid maturing
+June 23, 2020
+Government of Rajasthan UDAY non -SLR bond
+7.86% Bond of 1 each fully paid maturing
+June 23, 2019
+Government of Rajasthan UDAY non-SLR bond
+7.75% Bond of 1 each fully paid maturing
+June 23, 2018
+Government of Rajasthan UDAY non -SLR bond
+Quoted
+Investments in government securities
+1.4
+96.1
+140,625
+1.4
+114.9
+107.7
+140,625
+1.4
+140,625
+Shares of 10 each fully paid
+27,400,000
+Nimbua Greenfield (Punjab) Limited
+27.1
+27.3
+As at
+March 31, 2017
+Quantity in Million
+665.2
+Aggregate amount of quoted investments at market
+value
+Aggregate book value (carrying value) of quoted
+investments
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+115
+ANNUAL REPORT 2016-17
+0.0
+898.7
+514.9
+1,067.8
+0.0
+560.1
+0.0
+0.0
+0.0
+159.7
+150,000,000
+214.8
+200,000,000
+103.7
+100,000,000
+27.5
+27,400,000
+27,400,000
+0.5
+(0.5)
+50,000
+0.5
+(0.5)
+1,050,000
+112.3
+1,050,000
+105.1
+1,050,000
+Quantity in Million
+in Million
+As at
+April 01, 2015
+As at
+March 31, 2016
+Quantity
+in Million
+As at
+March 31, 2017
+Quantity
+Enviro Infrastructure Co. Limited
+Unquoted
+Krebs Biochemicals and Industries Limited
+Shares of 10 each fully paid
+Quoted
+Investments in equity instruments
+Other investments
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+802.6
+402.6
+150,000
+93.5
+Shares of 10 each fully paid
+100,000
+1.0
+(0.5)
+Less: Impairment in value of investment
+50,000
+0.5
+50,000
+Shares of 10 each fully paid
+Biotech Consortium India Limited
+0.2
+20,000
+0.2
+20,000
+0.2
+400.0
+20,000
+Shivalik Solid Waste Management Limited
+934.0
+(934.0)
+934.0 9,340,000
+(934.0)
+934.0 9,340,000
+(934.0)
+Less: Impairment in value of investment
+9,340,000
+Shares of 10 each fully paid
+Shimal Research Laboratories Limited
+1.0
+100,000
+1.0
+100,000
+Shares of 10 each fully paid
+31,702.3
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+562.4 12,126.5
+Plant and
+equipment -
+leased #
+Buildings - Plant and
+leased # equipment
+land
+Buildings
+Freehold Leasehold
+land
+Following are the changes in the carrying value of property, plant and equipment
+PROPERTY, PLANT AND EQUIPMENT
+Note 3
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+109
+ANNUAL REPORT 2016-17
+In March 2017, the Ministry of Corporate Affairs
+issued the Companies (Indian Accounting Standards)
+(Amendments) Rules, 2017, notifying amendment to
+Standards issued but not yet effective
+Recent Accounting pronouncements
+16.9
+118
+r.
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+Furniture
+and fixtures
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Earnings per share
+The Company presents basic and diluted earnings per
+share ("EPS") data for its equity shares. Basic EPS is
+calculated by dividing the profit or loss attributable to
+equity shareholders of the Company by the weighted
+average number of equity shares outstanding during
+the period. Diluted EPS is determined by adjusting the
+profit or loss attributable to equity shareholders and the
+weighted average number of equity shares outstanding
+for the effects of all dilutive potential ordinary shares,
+which includes all stock options granted to employees.
+The number of equity shares and potentially dilutive
+equity shares are adjusted retrospectively for all periods
+presented for any share splits and bonus shares issues
+including for changes effected prior to the approval of the
+financial statements by the Board of Directors.
+Ind AS 7, 'Statement of cash flows'. This amendment is
+The amendments to Ind AS 7 requires the entities
+to provide disclosures that enable users of financial
+statements to evaluate changes in liabilities arising from
+financing activities, including both changes arising from
+cash flows and non-cash changes, suggesting inclusion
+of a reconciliation between the opening and closing
+balances in the Balance Sheet for liabilities arising from
+financing activities, to meet the disclosure requirement.
+S.
+FOR THE YEAR ENDED MARCH 31, 2017
+Vehicles
+The Company is evaluating the requirements of the
+amendment and the effect on the financial statements is
+being evaluated.
+* in Million
+As at March 31, 2016
+541.1
+562.4 11,071.7
+16.9
+26,339.3
+370.3
+(19.4)
+-
+5,621.9
+Disposals
+(258.9)
+As at March 31, 2017
+Office
+equipment
+911.4
+1,054.8
+84.7 9,321.0
+Additions
+466.2
+68.8
+At cost or deemed cost
+Total
+386.7 31,187.3
+As at April 01, 2015
+530.9
+562.4
+10.2
+Disposals
+Additions
+8,605.9
+2,475.5
+(9.7)
+16.9
+19,955.9
+6,516.1
+(132.7)
+19.4
+643.0
+165.7
+215.9
+* in Million
+As at
+April 01, 2015
+212.5
+6.8
+4.9
+As at
+March 31, 2016
+4.9
+3.4
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+PROVISIONS (NON-CURRENT)
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 25
+Employee benefits (Refer Note 48)
+BORROWINGS (CURRENT)
+March 31, 2017
+6.8
+Others (Refer Note 55)
+Note 26
+08-79
+As at
+* in Million
+As at
+April 01, 2015
+19,151.1
+19,228.4
+Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising
+on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising
+on the changes of the fair value of the designated portion of the hedging instruments that are recognised and accumulated under the cash
+flow hedge reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis
+adjustment to the non-financial hedged item.
+Loans repayable on demand
+Note 23
+BORROWINGS (NON-CURRENT)
+As at
+March 31, 2017
+As at
+March 31, 2016
+Term loan from department of biotechnology (Refer Note 51)
+Secured
+108.2
+11,576.3
+11,653.6
+77.3
+Term loans from banks (Refer Note 51)
+Unsecured
+Note 24
+OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+Interest accrued
+Derivatives not designated as hedge
+124
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+7,498.2
+7,606.4
+77.3
+From Banks
+12,347.5
+42,375.6
+Unsecured
+2,560.5
+26,756.8
+2,739.0
+27,223.4
+8,019.9
+65.7
+15,320.8
+40,540.4
+37,337.2
+Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investment in equity instrument
+in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of equity instrument.
+As at
+March 31, 2017
+Dues to micro and small enterprises (Refer Note 46)
+Others
+116.7
+20,825.3
+20,942.0
+As at
+March 31, 2016
+87.4
+17,637.1
+17,724.5
+* in Million
+As at
+April 01, 2015
+94.0
+15,673.7
+15,767.7
+ANNUAL REPORT 2016-17 125
+SUN
+PHARMA
+198.1
+25,021.5
+* in Million
+As at
+April 01, 2015
+March 31, 2016
+March 31, 2017
+Loans from related party
+Loans repayable on demand (Unsecured)
+Other loans
+Commercial paper (Unsecured)
+Note 27
+TRADE PAYABLES
+As at
+As at
+March 31, 2017
+Secured (Refer Note 51)
+2,443.8
+* in Million
+As at
+April 01, 2015
+1,610.6
+8,884.5
+16,591.8
+11,328.3
+18,251.3
+21,179.9
+22,790.5
+As at
+As at
+March 31, 2016
+1,659.5
+General reserve - The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies Act 1956. Mandatory
+transfer to general reserve is not required under the Companies Act 2013.
+Capital redemption reserve
+Amaglamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.
+Note 14
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+March 31, 2017
+As at
+March 31, 2016
+As at
+April 01, 2015
+Refer statement of changes in equity for detailed movement in other equity
+balance
+A)
+Share application money pending allotment (March 31, 2017: 7,177)
+0.0
+6.7
+149.0
+[Refer Note 59 (12)]
+B)
+Reserve and surplus
+INVESTMENTS (CURRENT)
+Investments in mutual funds
+Unquoted *
+ICICI Prudential Mutual Fund-ICICI
+Prudential Money Market Fund-Direct
+Plan Growth
+in Million
+Quantity
+in Million
+As at
+March 31, 2016
+As at
+March 31, 2017
+Quantity
+units fully paid
+Commerical paper of *500,000
+JM Financial Products Ltd
+Commerical paper of * 500,000
+units fully paid
+Capital reserve
+Corporation Limited
+Unquoted
+Investments in commercial paper
+Units of 1000 each fully paid
+Liquid Fund-Direct Plan-Growth Option
+fully paid
+Pramerica Mutual Fund-Pramerica
+Units of 100 each fully paid
+Prudential Liquid - Direct Plan - Growth
+ICICI Prudential Mutual Fund-ICICI
+Units of 100 each fully paid
+Housing Development Finance
+Capital redemption reserve - The Company has recognised Capital Redemption Reserve on buy-back of equity shares from its retained
+earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the equity shares bought back.
+Securities premium reserve
+36,660.0
+18,585.2
+16.0
+23.1
+4.2
+Effective portion of cash flow hedges
+(26.6)
+(10.6)
+206,315.8
+23.1
+216,500.4
+4.2
+236,123.2
+ANNUAL REPORT 2016-17 123
+SUN
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Nature and purpose of each reserve
+Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as
+capital reserve.
+Securities premium reserve - The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve.
+In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is
+accounted as securities premium reserve. This reserve is utilised in accordance with the provisions of the Companies Act 2013.
+Debenture redemption reserve - The Company is required to create a debenture redemption reserve out of the profits which is available for
+payment of dividend. This reserve was transferred to general reserve on redemption of debentures.
+Share options outstanding account - The fair value of the equity settled share based payment transactions is recognised to share options
+outstanding account.
+Equity instrument through OCI
+Items of other comprehensive income (OCI)
+C)
+34,029.3
+146,184.5
+235,970.0
+36,660.0
+18,220.3
+Debenture redemption reserve
+750.0
+Share options outstanding account
+26.4
+48.9
+82.1
+Amalgamation reserve
+43.8
+36,660.0
+11,894.6
+43.8
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+7.5
+General reserve
+34,779.3
+34,779.3
+Retained earnings
+122,914.8
+206,326.4
+126,353.4
+216,470.6
+43.8
+FOR THE YEAR ENDED MARCH 31, 2017
+216.1
+OTHER FINANCIAL LIABILITIES (CURRENT)
+394.3
+Others (March 31, 2017: 20,000)
+0.0
+0.2
+2,040.7
+394.5
+Net gain arising on financial assets measured at fair value through profit or loss
+16.1
+Gain on sale of financial assets measured at fair value through profit or loss
+186.0
+5.7
+178.2
+Gain on sale of investment in subsidiary
+2,307.8
+3,242.2
+Gain on sale of investment in associate
+Sundry balances written back, net
+Insurance claims
+Lease rental and hire charges
+Miscellaneous income
+2,040.7
+Subsidiary
+Dividend income on investments
+362.4
+March 31, 2017
+March 31, 2016
+Interest income on:
+Bank deposits at amortised cost
+Loans at amortised cost
+0.7
+41.1
+89.4
+99.6
+120.3
+Investments in debt instruments at amortised cost
+11.6
+Investments in debt instruments at fair value through other comprehensive income
+Other financial assets carried at amortised cost
+6.6
+107.7
+133.2
+Others
+22.0
+76.9
+229.3
+2.9
+Year ended
+25.4
+24.8
+ANNUAL REPORT 2016-17 127
+SUN
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 34
+CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+Inventories at the beginning of the year
+Inventories at the end of the year
+Note 35
+EMPLOYEE BENEFITS EXPENSE
+Year ended
+March 31, 2017
+13,290.8
+(14,918.7)
+(1,627.9)
+* in Million
+Year ended
+March 31, 2016
+13,147.0
+(13,290.8)
+(143.8)
+Salaries and wages
+Contribution to provident and other funds
+Year ended
+18,383.1
+22,845.2
+(7,644.0)
+(7,318.0)
+31.4
+188.8
+182.6
+4.9
+5,144.1
+4,450.9
+3.9
+Note 33
+COST OF MATERIALS CONSUMED
+Raw materials and packing materials
+50.0
+Inventories at the beginning of the year
+Inventories at the end of the year
+Year ended
+March 31, 2017
+* in Million
+Year ended
+March 31, 2016
+7,644.0
+8,440.9
+22,519.2
+17,586.2
+Purchases during the year
+Note 28
+Year ended
+OTHER INCOME
+Derivatives designated as hedge
+Others
+14,298.5
+14,674.5
+14,276.4
+72.6
+As at
+April 01, 2015
+Quantity
+4,869.6
+26.6
+44.2
+28,135.4
+17,793.0
+179.9
+34,291.4
+Note 29
+OTHER CURRENT LIABILITIES
+Statutory remittances
+Advance from customers
+Others
+Note 30
+Product settlement, claims, recall charges and trade commitments
+Derivatives not designated as hedge
+699.1
+838.5
+1,143.3
+As at
+As at
+in Million
+As at
+March 31, 2017
+Current maturities of long-term debt (Refer Note 51)
+Interest accrued
+12,319.3
+63.1
+March 31, 2016
+1,722.8
+April 01, 2015
+13,838.7
+PROVISIONS (CURRENT)
+91.8
+Unpaid dividends
+76.7
+72.8
+65.7
+Security deposits
+Payables on purchase of property, plant and equipment
+135.3
+132.3
+140.3
+221.7
+* in Million
+As at
+1,385.4
+348.7
+3.9
+1,738.0
+REVENUE FROM OPERATIONS
+Sale of products (including excise duty)
+Other operating revenues
+126 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+* in Million
+Year ended
+March 31, 2017
+75,237.9
+2,829.1
+78,067.0
+Year ended
+March 31, 2016
+72,540.9
+6,096.0
+78,636.9
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 32
+Note 31
+7,037.8
+11,796.1
+5,346.6
+As at
+March 31, 2016
+1,339.0
+* in Million
+As at
+April 01, 2015
+1,196.4
+275.4
+7.8
+1,622.2
+1,035.8
+7.8
+2,240.0
+As at
+March 31, 2017
+As at
+March 31, 2016
+March 31, 2017
+* in Million
+As at
+April 01, 2015
+754.8
+611.5
+404.6
+Provision in respect of losses of a subsidiary
+Others (Refer Note 55)
+1,602.6
+1,569.8
+1,286.6
+16,112.5
+18,469.9
+9,614.8
+Employee benefits (Refer Note 48)
+in Million
+Less: Allowance for doutful debts (expected credit loss allowance)
+400.1
+0.2
+155,697
+2,071.2
+334.8
+2,406.6 2,071,163,910
+334,770,248
+2,406,605,118
+in Million
+Number of
+shares
+in Million
+Number of
+shares
+As at
+March 31, 2016
+As at
+March 31, 2017
+Add: shares allotted to employees on exercise of employee stock
+option (excluding shares held by ESOP trust)
+Add: shares allotted pursuant to the scheme of amalgamation
+[Refer Note 59(4)]
+Opening balance
+Reconciliation of the number of equity shares and amount outstanding
+at the beginning and at the end of reporting period (As at April 01,
+2015, excluding share suspense account)
+2,071.2
+2,071.2
+2,406.6 2,071,163,910
+2,406.6 2,071,163,910
+2,399.3 2,406,605,118
+2,399.3 2,406,605,118
+2,399,260,815
+2,399,260,815
+670,960
+0.6
+Less: buy-back of shares [Refer Note 59 (13)]
+Closing balance
+(7,500,000)
+0.0
+30,366
+Closing balance (March 31, 2017: * 30,366)
+0.1
+(0.2)
+160,000
+(223,135)
+(0.1)
+(93,015)
+Less: shares allotted by ESOP Trust on exercise of employee stock
+option
+Add: shares allotted to the ESOP Trust
+Issued, subscribed and fully paid up
+Equity shares of ₹ 1 each
+0.2
+Add: shares allotted pursuant to the scheme of amalgamation
+[Refer Note 59(4)]
+0.1
+123,381
+Opening balance
+The movement of equity shares issued to ESOP Trust at face value is as
+follows: (As at April 01, 2015, excluding share suspense account)
+2,406.6
+2,399.3 2,406,605,118
+2,399,260,815
+(7.5)
+186,516
+123,381
+6,000.0
+6,000.0 5,990,100,000
+SUN
+ANNUAL REPORT 2016-17 121
+7,502.9
+9,033.4
+10,727.5
+88.7
+7.0
+32.2
+856.5
+4,530.7
+5,758.1
+6,278.6
+1,131.6
+1,930.2
+(185.1)
+(184.2)
+(206.3)
+185.1
+184.2
+206.3
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 21
+5,990,100,000
+5,990.0
+10.0
+5,990,000,000
+100,000
+5,990.0
+10.0
+100,000
+5,990.0 5,990,000,000
+10.0
+100,000
+Cumulative preference shares of * 100
+each
+5,990,000,000
+6,000.0 5,990,100,000
+Equity shares of 1 each
+As at
+April 01, 2015
+Number of
+shares
+in Million
+Number of
+shares
+in Million
+Number of
+shares
+As at
+March 31, 2016
+As at
+March 31, 2017
+Authorised
+EQUITY SHARE CAPITAL
+* in Million
+856.5
+0.1
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+13,092.8
+1,028.2
+* in Million
+Year ended
+March 31, 2016
+Note 22
+Refer Note 50 for number of employee stock options against which equity shares are to be issued by the Company / ESOP Trust upon
+vesting and exercise of those stock options.
+(v)
+(iv) Rights, Preference and Restrictions attached to equity shares: The Equity Shares of the Company, having par value of ₹ 1 per share, rank
+pari passu in all respects including voting rights and entitlement to dividend.
+(iii) 7,500,000 (upto March 31, 2016: Nil, upto April 01, 2015: Nil) equity shares of * 1 each have been bought back during the period of
+five years immediately preceding the date at which the Balance Sheet is prepared. The shares bought back in the current year were
+cancelled immediately. [Refer Note 59 (13)]
+1,035,581,955 (upto March 31, 2016: 1,035,581,955; upto April 01, 2015: 1,035,581,955) equity shares of * 1 each have been allotted as
+fully paid up bonus shares during the period of five years immediately preceding the date at which the Balance Sheet is prepared.
+334,956,764 (upto March 31, 2016: 334,956,764; upto April 01, 2015: Nil) equity shares of * 1 each have been allotted, pursuant to
+scheme of amalgamation, without payment being received in cash during the period of five years immediately preceding the date at
+which the Balance Sheet is prepared. [Refer Note 59(4)]
+(ii)
+8.8
+182,868,640
+8.8
+182,927,440
+9.4
+195,343,760
+9.7
+201,385,320
+11.2
+holding
+Share based payments to employees
+Staff welfare expenses
+Note 36
+FINANCE COSTS
+OTHER EQUITY
+13,663.2
+819.3
+5,741.0
+2,235.6
+538.0
+437.8
+66.2
+2,238.1
+779.8
+4.4
+% of
+1,013.6
+in Million
+Year ended
+March 31, 2016
+Year ended
+March 31, 2017
+14,766.9
+555.3
+90.6
+30.8
+348.4
+14,861.7
+128 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Exchange differences regarded as an adjustment to borrowing costs
+Unwinding of discounts on provisions
+Interest expense for financial liabilities carried at amortised cost
+Interest expense others
+2,898.7
+122 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+231,140,480
+April 01, 2015
+Number of
+9.6
+230,285,690
+Dilip Shantilal Shanghvi
+holding
+shares
+holding
+% of
+Number of
+% of
+Number of
+shares
+March 31, 2016
+March 31, 2017
+As at
+As at
+Equity shares held by each shareholder
+holding more than 5 percent equity shares
+(As at April 01, 2015, excluding share
+suspense account) in the Company are as
+follows:
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+231,140,480
+9.6
+Viditi Investment Pvt. Ltd.
+200,846,362
+As at
+64 166
+7.6
+182,868,640
+7.6
+182,379,237
+Quality Investments Pvt. Ltd.
+7.6
+182,927,440
+shares
+7.6
+Family Investment Pvt. Ltd.
+8.1
+195,343,760
+8.1
+194,820,971
+Tejaskiran Pharmachem Industries Pvt. Ltd.
+8.4
+201,385,320
+8.4
+182,437,880
+1,662,199
+1,131.6
+526.7
+7.9
+5.5
+6.4
+40.0
+3.8
+4.2
+13.7
+1,870.4
+1,534.1
+1,497.2
+* in Million
+As at
+April 01, 2015
+March 31, 2016
+March 31, 2017
+As at
+As at
+Deposit accounts
+BANK BALANCES OTHER THAN DISCLOSED IN NOTE 16 ABOVE
+Note 17
+Cash on hand
+1,507.8
+1,543.4
+1,932.0
+As at
+Considered doubtful
+Unsecured, considered good
+Secured, considered good
+Loans to employees / others
+LOANS (CURRENT)
+Note 18
+*having original maturity of more than 12 months.
+70.0
+70.2
+Cheques on hand
+70.2
+58.6
+63.0
+59.3
+Unpaid Dividend Accounts
+Earmarked balances with banks
+* in Million
+As at
+April 01, 2015
+2,104.0
+As at
+March 31, 2016
+14.5
+0.8
+March 31, 2017
+Balances held as margin money or security against guarantees and other
+commitments (*)
+Less: Allowance for doubtful loans
+In deposit accounts with original maturity less than 3 months
+Balances with banks
+As at
+As at
+March 31, 2017
+850.7
+735.6
+735.6
+244.6
+500
+850.7
+500.5
+335,039
+350.2
+1,810,104
+491.0
+1,000
+TRADE RECEIVABLES
+Note 15
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+400.1
+400.1
+March 31, 2016
+* in Million
+As at
+April 01, 2015
+Unsecured
+Considered good
+CASH AND CASH EQUIVALENTS
+Note 16
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 119
+(580.9)
+17,915.1
+19,978.1
+In current accounts
+27,256.7
+(1,209.7)
+18,496.0
+21,282.6
+28,466.4
+17,915.1
+580.9
+19,978.1
+1,304.5
+1,209.7
+27,256.7
+Considered doubtful
+(1,304.5)
+1,930.2
+Loans to related parties (Refer Note 53 & 54)
+120
+Derivatives not designated as hedges
+69.4
+46.9
+40.5
+Other receivables
+60.6
+70.2
+35.3
+Security deposits
+6.6
+6.4
+1.6
+Insurance claim receivables
+114.4
+0.1
+(151.5)
+(214.9)
+151.5
+214.9
+594.3
+92.4
+932.7
+671.8
+1,500.3
+1,936.4
+200.3
+327.4
+2,159.1
+* in Million
+As at
+April 01, 2015
+As at
+March 31, 2016
+March 31, 2017
+As at
+Other assets
+114.4
+Balances with government authorities
+Considered doubtful
+Considered good
+Advances for supply of goods and services
+Prepaid expenses
+Export incentives receivable
+OTHER CURRENT ASSETS
+Note 20
+1,183.7
+215.9
+Less: Allowance for doubtful
+Unsecured, considered good
+0.1
+Considered doubtful
+(4.5)
+(4.5)
+4.5
+4.5
+4.5
+13.6
+456.4
+4.6
+182.4
+134.2
+4.0
+* in Million
+As at
+April 01, 2015
+As at
+March 31, 2016
+March 31, 2017
+As at
+2,232.6
+147.7
+130.3
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Less: Allowance for doubtful loans
+Considered doubtful
+(4.5)
+238.4
+512.0
+512.0
+Considered good
+Interest accrued
+* in Million
+As at
+April 01, 2015
+March 31, 2016
+March 31, 2017
+As at
+As at
+OTHER FINANCIAL ASSETS (CURRENT)
+Note 19
+Less: Allowance for doubtful
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+708.4
+187.0
+(274.0)
+(512.0)
+(512.0)
+138.2
+274.0
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+March 31, 2017
+As at
+in Million
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or
+indirectly.
+773.0
+715.4
+Fine imposed for anti-competitive settlement agreement by European
+Commission
+15.4
+15.4
+16.7
+Demand by JDGFT for import duty with respect to import alleged to be in
+excess of entitlement as per the advanced license scheme
+3,248.0
+3,326.4
+3,488.2
+Drug Price Equalisation Account [DPEA] on account of demand towards
+unintended benefit, enjoyed by the Company
+0.2
+156.0
+Service tax on certain services performed outside India under reverse
+charge basis
+0.2
+132.8
+37.9
+164.5
+689.1
+Octroi demand on account of rate difference
+171.0
+171.0
+530.6
+a
+ii
+Estimated amount of contracts remaining to be executed on capital
+account [net of advances].
+Future cash outflows in respect of the above matters are determinable only on
+receipt of judgements / decisions pending at various forums / authorities.
+Commitments
+Footnote:
+Letter of comfort on behalf of subsidiaries, to the extent of limits
+Trade commitments
+Others:
+C
+The Company and/or its subsidiaries are involved in various legal proceedings
+including product liability, contracts, employment claims, anti-trust and
+other regulatory matters relating to conduct of its business. The Company
+records a provision in the financial statements to the extent that it concludes
+that a liability is probable and estimable based on the status of these cases,
+advice of the counsel, management assessment of the likely damages etc. The
+Company carries product liability insurance / is contractually indemnified by
+the manufacturer, for an amount it believes is sufficient for its needs. In respect
+of other claims, the Company believes, these claims do not constitute material
+litigation matters and with its meritorious defences the ultimate disposition of
+these matters are not expected to have material adverse effect on its Financial
+Statements.
+Legal Proceedings
+136.3
+88.3
+67.5
+Other matters - state electricity board, Punjab Land Preservation Act
+related matters etc.
+171.0
+11,087.7
+19,026.8
+38.8
+1,016.1
+1,102.2
+Excise duty on account of valuation / cenvat credit
+ESIC contribution on account of applicability
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+130
+# The tax rate used for reconciliation above is the corporate tax rate of 34.608% at which the Company is liable to pay tax on taxable income under the Indian Tax Law.
+54.5
+25.1
+Income tax expense recognised in profit or loss
+7,342.3
+4,734.4
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+(259.4)
+54.5
+25.1
+Withholding tax in respect of income earned outside India
+(234.5)
+Investment allowance u/s 32AC of Income Tax Act, 1961
+358.8
+(2,438.3)
+(2,959.5)
+Effect of incremental deduction on account of research and development and other allowances
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+2873.1
+08-79
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+45,998.3
+45.7
+Sales tax on account of rebate / classification
+127.1
+149.4
+355.0
+Claims against the Company not acknowledged as debts
+Liabilities disputed - appeals filed with respect to:
+Income tax on account of disallowances/additions
+b
+a
+Contingent liabilities
+i
+* in Million
+As at
+April 01, 2015
+March 31, 2017 March 31, 2016
+As at
+As at
+CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
+Note 40
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS 80-278
+4,235.4
+3,098.8
+2,535.8
+1,392.3
+8,281.7
+March 31, 2017
+Year ended
+132 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Derivatives not designated as hedges
+Mandatorily measured:
+Product settlement, claims, recall charges and trade commitments
+Derivatives designated as hedges
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+Trade payables
+Interest accrued
+Borrowings
+Financial liabilities
+Derivatives not designated as hedges
+Mandatorily measured:
+9,674.0
+Other receivables
+*in Million
+543.7
+8,293.9
+1,205.8
+2,008.5
+40.5
+1.6
+0.1
+130.3
+1,507.8
+27,256.7
+412.8
+1.0
+0.0
+186.7
+665.2
+802.7
+Amortised cost
+Fair value
+through other
+comprehensive
+income
+Fair value
+through profit
+or loss
+in Million
+As at March 31, 2017
+Year ended
+March 31, 2016
+7,750.2
+77.7
+Insurance claim receivables
+Bank balances other than above
+131
+ANNUAL REPORT 2016-17
+1,020.5
+435.9
+740.2
+502.1
+2,312.0
+1,961.3
+Guarantees given by the bankers on behalf of the Company
+iii
+For non-cancellable lease related commitments refer Note 49
+Letters of credit for imports
+e
+d
+For derivatives related commitments refer Note 45
+C
+Uncalled liability on partly paid investments
+b
+0.5
+0.5
+0.5
+SUN
+Interest accrued
+PHARMA
+FOR THE YEAR ENDED MARCH 31, 2017
+Cash and cash equivalents
+Trade receivables
+Security deposits
+Deposits Account - Pledged with Government Authorities
+Loans to employees/others
+Government securities - unquoted (* 10,000)
+Equity instruments/Preference shares / Mutual fund - unquoted
+Equity instruments / bonds - quoted
+Investments
+Financial assets
+CATEGORIES OF FINANCIAL INSTRUMENTS
+Note 42
+Total
+Capital
+Revenue, net (excluding depreciation) (Refer Note 38)
+RESEARCH AND DEVELOPMENT EXPENDITURE
+Note 41
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Effect of expenses that are not deductible
+(1,258.6)
+(1,505.8)
+2,032.2
+1,601.3
+1,754.2
+1,755.6
+297.5
+325.7
+2,172.3
+2,110.8
+441.4
+472.4
+4,535.0
+454.1
+419.8
+4,555.8
+866.1
+1,078.8
+393.1
+221.1
+262.4
+3,704.8
+324.9
+1,232.1
+0.4
+25.3
+11.0
+22.9
+24.8
+2,752.2
+(1,745.7)
+138.4
+(49.4)
+82.3
+110.2
+26.8
+15.8
+1,304.3
+1,092.4
+6,309.1
+3,810.9
+38.5
+0.6
+3,451.7
+2,276.2
+Freight outward and handling charges
+Travelling and conveyance
+Printing and stationery
+Repairs and maintenance
+Commission on sales
+Selling and distribution
+Insurance
+Rates and taxes
+Rent
+Power and fuel
+Conversion and other manufacturing charges
+Consumption of materials, stores and spare parts
+OTHER EXPENSES
+Note 37
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+Communication
+1,984.9
+Provision / write off for doubtful trade receivables / advances
+Excise duty on sales
+4,230.7
+4,278.7
+March 31, 2016
+March 31, 2017
+Year ended
+Year ended
+* in Million
+Miscellaneous expenses
+Impairment of non-current investment in associate (March 31, 2016: 16,380)
+Provision in respect of losses of a subsidiary
+Reimbursement of expenses
+For audit [includes Nil (Previous year * 0.7 Million) in respect of previous year]
+For other services
+Payments to auditors (net of input credit, where applicable)
+* 132.6 million (Previous year exchange loss of 160.3 Million) in respect of provision for losses of
+a subsidiary]
+Net (gain) / loss on foreign currency transactions [includes exchange gain of
+(Decrease)/increase of excise duty on inventories
+Loss on sale/write off of property, plant and equipment, net
+Donations
+Professional, legal and consultancy
+665.2
+0.0
+122.9
+Miscellaneous income
+Receipts from research activities
+Net interest income
+Less:
+0.6
+575.9
+9,037.9
+9,038.0
+647.3
+Miscellaneous expenses
+(0.4)
+Loss on sale/write off of property, plant and equipment, net
+1,464.6
+1,196.1
+Professional, legal and consultancy
+53.8
+40.6
+Communication
+138.7
+Note 39
+132.8
+TAX RECONCILIATION
+2.1
+1,271.7
+Effect of income that is exempt from tax
+(3,744.8)
+(112.3)
+Income tax credit calculated at enacted income tax rate
+34.608%
+34.608%
+Enacted income tax rate (%) applicable to the Company #
+(10,820.6)
+(324.4)
+Profit/(loss) before tax
+Reconciliation of tax expense
+March 31, 2016
+in Million
+Year ended
+Year ended
+March 31, 2017
+13.9
+7,750.2
+8,281.7
+9.2
+0.1
+747.0
+165.4
+Travelling and conveyance
+31.1
+Insurance
+Rates and taxes
+Rent
+Power and fuel
+Staff welfare expenses
+Contribution to provident and other funds
+Salaries and wages
+RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE STATEMENT OF PROFIT AND LOSS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 38
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 129
+38,117.4
+2,909.3
+2,385.7
+28,670.3
+Repairs and maintenance
+30.2
+Printing and stationery
+* in Million
+Year ended
+March 31, 2016
+2,699.3
+451.0
+468.0
+39.3
+37.3
+128.0
+241.7
+96.9
+54.9
+378.9
+342.8
+2,747.5
+2,815.9
+Consumption of materials, stores and spare parts
+71.3
+46.7
+161.9
+135.1
+Year ended
+March 31, 2017
+2,848.1
+29,537.5
+60,466.1
+69.9
+20,942.0
+Issues
+Balance at the beginning of the year
+Purchases
+Unlisted shares valued at fair value
+Reconciliation of Level 3 fair value measurements
+The management considers that the carrying amount of financial assets and financial liabilities carried as amortised cost approximates their
+fair value.
+There were no transfers between Level 1 and 2 in the periods.
+# These investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose. Upon
+the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments as at fair value through other
+comprehensive income as the management believes that this provides a more meaningful presentation for medium or long-term strategic
+investments, than reflecting changes in fair value immediately in profit or loss.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of
+unquoted investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents
+estimate of fair value within that range.
+Level 3 inputs are unobservable inputs for the asset or liability.
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement
+date.
+5,082.1
+5,082.1
+805.2
+1,944.2
+944.2
+1,944.2
+Level 3
+Disposal/settlements
+As at April 01, 2015
+Level 2
+Balance at the end of the year
+in Million
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+- to ensure the Company's ability to continue as a going concern; and
+The Company's capital management objectives are:
+CAPITAL MANAGEMENT
+Note 44
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+(402.6)
+402.6
+402.6
+805.2
+402.6
+March 31, 2016
+Year ended
+Year ended
+March 31, 2017
+136 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents as presented on the face of the
+financial statements. The Company's objective for capital management is to maintain an optimum overall financial structure.
+Level 1
+850.7
+Derivative not designated as hedge
+402.6
+1534.6
+1,534.6
+112.3
+2.6
+400.0
+112.3
+Level 3
+As at March 31, 2016
+Level 2
+Level 1
+in Million
+99.2
+26.6
+72.6
+402.6
+1,205.8
+1,065.3
+1,205.8
+400.1
+216.1
+216.1
+* in Million
+in Million
+As at April 01, 2015
+Level 2
+Financial liabilities
+Derivatives not designated as hedges
+FOR THE YEAR ENDED MARCH 31, 2017
+Mutual funds
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+135
+ANNUAL REPORT 2016-17
+2.6
+802.6
+93.5
+Investments in preference shares
+Investments in equity - unquoted
+Investments in equity-quoted #
+Financial assets
+Financial assets and liabilities measured at fair value on a recurring basis at the end of
+each reporting period
+Level 3
+Level 1
+400.0
+(i) Debt equity ratio
+Debt (includes non-current, current borrowings and current maturities of long term
+debt)
+15,059.8
+16,775.5
+21,052.2
+3,555.6
+Balance at the end of the year
+Recoveries
+Write-offs
+Addition
+Balance at the beginning of the year
+Movement in the expected credit loss allowance on trade receivables
+Total
+beyond 365 days
+180 - 365 days
+less than 180 days
+Financial assets for which loss allowances is measured using the expected credit loss
+Trade receivables
+in Million
+As at
+April 01, 2015
+As at
+March 31, 2017 March 31, 2016
+As at
+2,335.8
+The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision
+matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical
+data of credit losses from various customers.
+1,506.7
+2,171.3
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+138
+The Company has unutilised working capital lines from banks of 32,128.0 Million as on March 31, 2017, 27,718.7 Million as on March 31,
+2016, 30,177.9 Million as on April 01, 2015
+Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its
+liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and
+stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.
+Liquidity risk
+1,304.5
+1,209.7
+(4.4)
+(167.4)
+728.0
+580.9
+1,304.5
+72.6
+* in Million
+Year ended
+March 31, 2016
+Year ended
+March 31, 2017
+1,929.5
+18,496.0
+21,282.6
+28,466.4
+3,858.6
+As at
+Trade receivables
+Investments
+Year ended
+March 31, 2017
+Dividend distribution tax on above
+Final dividend for the year ended March 31, 2016 of 1.0 (previous year for year ended March 31,
+2015 ₹ 3.0) per fully paid share
+Dividend on equity shares
+(ii) Dividend on equity shares paid during the year
+65,935.9
+238,529.2
+27.6%
+1,932.0
+1,543.4
+56,745.0
+218,907.0
+25.9%
+28.2%
+1,507.8
+58,958.3
+208,715.1
+Net debt to total equity ratio
+Total equity
+Net debt
+Less: cash and cash equivalents
+* in Million
+As at
+April 01, 2015
+67,867.9
+As at
+March 31, 2016
+58,288.4
+March 31, 2017
+60,466.1
+2,406.8
+The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good
+credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have any significant
+concentration of exposures to specific industry sectors or specific country risks.
+Dividends not recognised at the end of the reporting period
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general
+meeting and hence not recognised as liability.
+credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Company grants
+credit terms in the normal course of business.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 137
+Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
+obligations, and arises principally from the Company's receivables from customers, loans and investments. Credit risk is managed through
+Credit risk
+The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company's risk
+management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set
+appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and
+processes are reviewed regularly to reflect changes in market conditions and the Company's activities.
+FINANCIAL RISK MANAGEMENT
+1,469.7
+74.7
+7,219.5
+March 31, 2016
+Year ended
+* in Million
+Note 45
+The Board of Directors at its meeting held on May 26, 2017 have recommended payment of final
+dividend of * 3.5 per share of face value of ₹ 1 each for the year ended March 31, 2017. The same
+amounts to 8,397.6 Million.
+08-79
+2.6
+105.1
+58,288.4
+23,199.9
+112.3
+1,534.6
+1,937.2
+46.9
+6.4
+147.7
+1,543.4
+19,978.1
+445.7
+1.0
+290.7
+4.4
+0.0
+735.6
+Amortised cost
+* in Million
+402.6
+96.7
+112.3
+17,724.5
+132.3
+Loans to employees/others
+Loans to related parties
+Equity instruments/Preference shares / Mutual fund - unquoted
+Government securities - unquoted (* 10,000)
+Equity instruments/bonds - quoted
+Investments
+Financial assets
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+133
+ANNUAL REPORT 2016-17
+91,871.9
+216.1
+216.1
+44.2
+14,674.5
+838.5
+72.8
+Deposits Account - Pledged with Government Authorities
+Fair value
+through profit
+or loss
+Derivatives not designated as hedges
+Equity instruments / Preference shares / Mutual fund - unquoted
+Equity instruments/bonds - quoted
+Investments
+Financial assets
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+97,131.8
+99.2
+72.6
+26.6
+14,298.5
+1,143.3
+135.3
+76.7
+Government securities - unquoted (₹10,000)
+As at March 31, 2016
+Fair value
+through other
+comprehensive
+income
+Commercial paper - unquoted
+Loans to employees/others
+Mandatorily measured:
+Product settlement, claims, recall charges and trade commitments
+Others
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+Trade payables
+Interest accrued
+Borrowings
+Financial liabilities
+Derivatives not designated as hedges
+Mandatorily measured:
+Other receivables
+Insurance claim receivables
+Cash and cash equivalents
+Trade receivables
+Security deposits
+Deposits Account - Pledged with Government Authorities
+Loans to related parties
+560.1
+Security deposits
+Cash and cash equivalents
+Financial assets
+Financial assets and liabilities measured at fair value on a recurring basis at the end of
+each reporting period
+FAIR VALUE HIERARCHY
+Note 43
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+99,222.1
+5,082.1
+5,082.1
+179.9
+14,276.4
+699.1
+140.3
+65.7
+Investments in equity - quoted #
+15,767.7
+Investments in equity - unquoted
+Investments in preference shares
+Level 3
+As at March 31, 2017
+Level 2
+Level 1
+*in Million
+Derivatives not designated as hedges
+Financial liabilities
+Derivatives not designated as hedges
+Investments in preference shares
+Investments in equity - unquoted
+Investments in equity - quoted #
+Financial assets
+Financial assets and liabilities measured at fair value on a recurring basis at the end of
+each reporting period
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Financial liabilities
+Derivatives not designated as hedges
+Mutual funds
+Investments in government securities
+Trade receivables
+225.1
+23,623.9
+Derivatives not designated as hedges
+134
+Mandatorily measured:
+Product settlement, claims, recall charges and trade commitments
+Others
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+Trade payables
+Interest accrued
+Borrowings
+Financial liabilities
+Derivatives not designated as hedges
+Mandatorily measured:
+Other receivables
+Insurance claim receivables
+Interest accrued
+Bank balances other than above
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+67,867.9
+Fair value
+through profit
+or loss
+93.5
+93.5
+3,600.1
+1,944.2
+69.4
+6.6
+114.4
+2,232.6
+1,932.0
+17,915.1
+483.9
+1.0
+626.1
+242.8
+0.0
+Amortised cost
+* in Million
+1,655.9
+As at April 01, 2015
+Fair value
+through other
+comprehensive
+income
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+Bank balances other than above
+99.2
+474.7
+90.3
+25.8
+22.8
+0.1
+0.1
+The Company has an obligation towards provident fund with respect to certain employees upto March 31, 2015 which was recognised as
+defined benefit plan. From the previous year the contribution for the same is made to RPF and the Company does not have any obligation apart
+from such contribution. Accordingly, from previous year, the provident fund is recognised as defined contribution plan.
+Defined benefit plan
+a) Gratuity
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund Scheme. It is governed by the
+Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or termination of
+the employment on completion of five years or death while in employment. The level of benefit provided depends on the member's length of
+service and salary at the time of retirement/termination age. Provision for Gratuity is based on actuarial valuation done by an independent
+actuary as at the year end. Each year, the Company reviews the level of funding in gratuity fund. The Company decides its contribution based
+on the results of its annual review. The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets
+the requirements of gratuity payments in short to medium term.
+b) Pension fund
+The Company has an obligation towards pension, a defined benefit retirement plan, with respect to certain employees, who had already retired
+before March 01, 2013, will continue to receive the pension as per the pension plan.
+These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
+74.9
+i) Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the
+market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan
+deficit. However, the risk is partially mitigated by investment in LIC managed fund.
+iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
+participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.
+iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As
+such, an increase in the salary of the plan participants will increase the plan's liability.
+144
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Other long term benefit plan
+Actuarial Valuation for Compensated Absences is done as at the year end and the provision is made as per Company rules with corresponding
+charge to the Statement of Profit and Loss amounting to * 331.0 Million (Previous Year 313.8 Million) and it covers all regular employees.
+Major drivers in actuarial assumptions, typically, are years of service and employee compensation.
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as at the year end using
+the 'Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating to defined benefit obligation are recognised
+in other comprehensive income whereas gains and losses in respect of other long term employee benefit plans are recognised in the Statement
+of Profit and Loss.
+ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in
+the return on the plan's debt investments.
+Year ended
+March 31, 2017
+507.3
+Year ended
+March 31, 2017
+Year ended
+March 31, 2016
+(10,875.1)
+2,406,379,179
+1,059,730
+2,403,523,128
+2,407,438,909
+1
+1
+(0.1)
+(4.5)
+Diluted earnings per share (in)
+(0.1)
+Year ended
+March 31, 2016
+Since the Company has loss for the year and in the previous year, the impact of employee stock option is anti dilutive. Therefore the basic
+and diluted earnings per share are the same.
+ANNUAL REPORT 2016-17 143
+SUN
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+EMPLOYEE BENEFIT PLANS
+Defined contribution plan
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC) and other Funds
+which covers all regular employees. While both the employees and the Company make predetermined contributions to the Provident Fund
+and ESIC, contribution to the Family Pension Fund and other Statutory Funds are made only by the Company. The contributions are normally
+based on a certain percentage of the employee's salary. Amount recognised as expense in respect of these defined contribution plans,
+aggregate to * 608.1 Million (Previous year 587.9 Million).
+Contribution to Provident Fund and Family Pension Fund
+Contribution to Superannuation Fund
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+* in Million
+(4.5)
+Year ended
+March 31, 2016
+in Million
+Expense recognised in the statement of profit
+Remeasurement of defined benefit obligation
+recognised in other comprehensive income
+Actuarial loss/(gain) on defined benefit
+56.2
+560.0
+(39.7)
+316.0
+obligation
+Actuarial gain on plan assets
+(16.1)
+(9.5)
+Expense/(income) charged to other
+182.7
+56.2
+(39.7)
+306.5
+comprehensive income
+Reconciliation of defined-benefit obligations
+Obligation as at the beginning of the year
+930.7
+4,598.6
+2,169.0
+981.8
+4,810.2
+1,779.0
+Current service cost
+543.9
+76.6
+212.5
+70.2
+and loss (Refer Note 35)
+Current service cost
+Interest cost
+Expected return on plan assets
+Recognition of unrecognised liabilities of
+earlier years
+Excess of planned assets over
+Pension Fund
+(Unfunded)
+Provident
+Fund
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+(Funded)
+Provident
+Fund
+Gratuity
+(Funded)
+(Funded)
+179.2
+166.0
+70.2
+592.6
+(598.5)
+163.7
+(130.4)
+76.6
+347.6
+(385.5)
+3.7
+139.5
+(122.8)
+5.9
+34.2
+commitments not recognised in financial
+statements
+Expense charged to the statement of
+profit and loss
+2,403,319,673
+203,455
+179.2
+(349.5)
+Basic earnings per share (in)
+Buy
+INR
+$22.5
+$ 14.0
+$ 350.0
+$ 170.0
+Forward contracts
+AUD
+Sell
+USD
+$ 1.3
+Forward contracts
+RUB
+USD
+Sell
+$ 12.0
+Currency cum interest rate swaps
+USD
+Buy
+INR
+$50.0
+Currency options
+USD
+Buy
+INR
+$ 100.0
+$50.0
+$ 100.0
+USD
+Currency options
+Forward contracts
+INR
+The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in US Dollars,
+Euros, South African Rand and Russian Rouble, and foreign currency debt in primarily in US Dollars. The Company uses foreign currency
+forward contracts, foreign currency option contracts and currency swap contracts (collectively, "derivatives") to mitigate its risk of
+changes in foreign currency exchange rates. The counterparty for these contracts is generally a bank or a financial institution.
+Hedges of highly probable forecasted transactions
+The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable forecasted
+transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recorded as in other
+comprehensive income, and re-classified in the income statement as revenue in the period corresponding to the occurrence of the
+forecasted transactions. The ineffective portion of such cash flow hedges is immediately recorded in the statement of profit and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a loss of ₹ 26.6 Million for the
+year ended March 31, 2017 and Nil for the year ended March 31, 2016 in other comprehensive income. The Company also recorded
+hedges as a component of revenue, loss of 521.5 Million for the year ended March 31, 2017 and * Nil for the year ended March 31,
+2016 on occurrence of forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and liabilities in foreign
+currencies, and for which no hedge accounting is applied, are recognised in the statement of profit and loss. The changes in fair value
+of the forward contracts and option contracts, as well as the foreign exchange gains and losses relating to the monetary items, are
+recognised in the statement of profit and loss.
+ANNUAL REPORT 2016-17
+141
+SUN
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts -
+$ 140.0
+Currency
+Cross
+As at
+As at
+Currency March 31, 2017 March 31, 2016
+Amount in Million
+As at
+April 01, 2015
+Derivatives designated as hedges
+Forward contracts
+ZAR
+Sell
+USD
+$22.0
+Derivatives not designated as hedges
+Forward contracts
+USD
+Sell
+Buy / Sell
+USD
+Buy
+INR
+Note 46
+DISCLOSURES UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
+The information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of
+information available with the Company. This has been relied upon by the auditors.
+Principal amount remaining unpaid to any supplier as at the end of the accounting
+year
+Interest due thereon remaining unpaid to any supplier as at the end of the
+accounting year
+The amount of interest paid along with the amounts of the payment made to the
+supplier beyond the appointed day
+The amount of interest due and payable for the year
+The amount of interest accrued and remaining unpaid at the end of the accounting
+year
+The amount of further interest due and payable even in the succeeding year, until
+such date when the interest dues as above are actually paid
+Note 47
+EARNINGS PER SHARE
+As at
+As at
+FOR THE YEAR ENDED MARCH 31, 2017
+March 31, 2017
+March 31, 2016
+87.4
+in Million
+As at
+April 01, 2015
+94.0
+(Interest - Nil)
+(Interest - Nil)
+(Interest - Nil)
+116.7
+87.4
+94.0
+Loss for the year (in Million)- used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic earnings per share
+Add: Dilution effect of employee stock option
+Weighted average number of shares used in computing diluted earnings per share
+Nominal value per share (in)
+116.7
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+$ 1.0
+$ 100.0
+$ 100.0
+$71.0
+Interest rate swaps
+Currency swaps
+USD
+Buy
+INR
+$ 150.0
+$40.0
+USD
+Buy
+INR
+$ 30.0
+ZAR
+Sell
+INR
+ZAR 42.5
+Forward contracts
+* structured options @ 2 to 2.5 times
+Interest rate risk
+The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in interest rates. The Company's
+Treasury Department monitors the interest rate movement and manages the interest rate risk by evaluating interest rate swaps etc. based on
+the market/risk perception.
+For the years ended March 31, 2017 and March 31, 2016, every 50 basis point decrease in the floating interest rate component applicable
+to its loans and borrowings would decrease the Company's loss by approximately 160.5 Million and * 221.5 Million respectively. A 50 basis
+point increase in floating interest rate would have led to an equal but opposite effect.
+Commodity rate risk
+Exposure to market risk with respect to commodity prices primarily arises from the Company's purchases and sales of active pharmaceutical
+ingredients, including the raw material components for such active pharmaceutical ingredients. These are commodity products, whose prices
+may fluctuate significantly over short periods of time. The prices of the Company's raw materials generally fluctuate in line with commodity
+cycles, although the prices of raw materials used in the Company's active pharmaceutical ingredients business are generally more volatile.
+Cost of raw materials forms the largest portion of the Company's cost of revenues. Commodity price risk exposure is evaluated and managed
+through operating procedures and sourcing policies. As of March 31, 2017, the Company had not entered into any material derivative
+contracts to hedge exposure to fluctuations in commodity prices.
+142
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+Year ended
+March 31, 2017
+Derivative contracts
+166.0
+70.2
+(Funded)
+3,000,000
+4,000,000
+4,000,000
+99.2
+Original No. of options approved
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+148
+Scheme
+ESOS-II
+ESOS 2005
+ESOP 2011
+09 May 2011
+30 June 2005
+25 June 2003
+(Unfunded)
+Date of approval
+ESOP 2011 provided that the grant price of options would be the face value of the equity share i.e. * 5 per share. The options vested evenly
+over a period of three years from the date of grant. Options lapse, if they were not exercised prior to the expiry date, which was three months
+from the date of the vesting. An ESOP Trust had been formed to administer ESOP 2011. Shares issued to the ESOP Trust were allocated to
+the eligible employees upon exercise of stock options from time to time.
+ESOS 2005 provided that the grant price of options would be the latest available closing price on the stock exchange on which the shares of
+the erstwhile RLL were listed, prior to the date of the meeting of the Committee in which the options were granted. If the shares are listed on
+more than one stock exchange, then the stock exchange where there was highest trading volume on the said date were considered. The options
+vested evenly over a period of five years from the date of grant. Options lapse, if they are not exercised prior to the expiry date, which was ten
+years from the date of grant.
+Erstwhile Ranbaxy Laboratories Limited (RLL) had Employee Stock Option Schemes ("ESOSs") namely, Employees Stock Option Scheme -II
+(ESOS-II), Employees Stock Option Scheme 2005 (ESOS 2005) and Employees Stock Option Plan 2011 (ESOP 2011) for the grant of stock
+options to the eligible employees and Directors of the Erstwhile RLL and its subsidiaries. ESOS-II had been discontinued from 17th January,
+2015. The ESOSs are administered by the Compensation Committee ("Committee”). Options are granted at the discretion of the Committee to
+selected employees depending upon certain criterion. Each option comprises one underlying equity share.
+161.7
+80.4
+17.1
+6.3
+91.4
+64.0
+in Million
+As at
+April 01, 2015
+March 31, 2016
+62.2
+18.2
+March 31, 2017
+17.1
+The Shareholders' Committee of Erstwhile RLL had approved issuance of options under the ESOS's as per details given below:
+As at
+Pension Fund
+Pension Fund
+146 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Sensitivity Analysis:
+Impact on defined benefit obligation
+Delta effect of +1% change in discount rate
+Delta effect of -1% change in discount rate
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee turnover
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation
+31-Mar-18
+Gratuity
+31-Mar-19
+31-Mar-21
+31-Mar-22
+Thereafter
+The major categories of plan assets are as under
+Central government securities
+Bonds and securities of public sector / financial institutions
+Insurer managed funds (Funded with LIC, break-up not available)
+Surplus fund lying uninvested
+The contribution expected to be made by the Company for gratuity, during
+financial year ending March 31, 2018 is ₹ 372.9 Million (Previous year * 314.1
+Million)
+* in Million
+Year ended
+Year ended
+March 31, 2017
+March 31, 2016
+31-Mar-20
+As at
+EMPLOYEE SHARE-BASED PAYMENT PLANS
+Note 50
+115.3
+252.4
+118.1
+253.8
+100.4
+415.5
+101.9
+401.2
+87.4
+19.9
+80.3
+(18.1)
+282.0
+(71.6)
+(158.4)
+111.8
+174.6
+115.6
+79.0
+189.7
+(103.2)
+(67.6)
+(167.7)
+(73.2)
+86.0
+Gratuity
+(Funded)
+(Unfunded)
+(101.9)
+137.0
+267.4
+132.5
+Later than one year and not later than five years
+Later than five years
+Not later than one year
+(a) The Company has given certain premises and plant and equipment under operating lease or leave and license agreements. These are
+generally not non-cancellable and periods range between 11 months to 10 years under leave and licence / lease and are renewable by mutual
+consent on mutually agreeable terms. The Company has received refundable interest free security deposits where applicable in accordance
+with the agreed terms. (b) The Company has obtained certain premises for its business operations (including furniture and fittings, therein
+as applicable) under operating lease or leave and license agreements. These are generally not non-cancellable and periods range between 11
+months to 10 years under leave and licence, or longer for other lease and are renewable by mutual consent on mutually agreeable terms. The
+Company has given refundable interest free security deposits in accordance with the agreed terms. These refundable security deposits have
+been valued at amortised cost under relevant Ind AS (c) Lease receipts/payments are recognised in the statement of profit and loss under
+"Lease rental and hire charges" & "Rent" in Note 32 and 37 respectively. (d) The future minimum lease payments in respect of assets taken on
+non-cancellable operating leases are as under-
+Note 49
+LEASES
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+147
+ANNUAL REPORT 2016-17
+156.3
+1,537.2
+8.6
+25.9
+22.2
+1,801.5
+69.3
+20.9
+1,527.0
+213.4
+1,276.5
+174.8
+305.9
+184.1
+281.0
+152.1
+290.9
+158.8
+283.2
+60
+Interest cost
+60
+* During the year, the Company managed Provident fund balance has been transferred to Regional Provident Fund Authority.
+ANNUAL REPORT 2016-17 145
+SUN
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Reconciliation of liability/(asset) recognised in the Balance sheet
+Present value of commitments (as per Actuarial Valuation)
+Fair value of plan assets
+Excess of planned assets over commitments not recognised
+Net liability recognised in the financial statement
+Reconciliation of plan assets
+Plan assets as at the beginning of the year
+2,169.0
+Expected return
+Actuarial gain
+Employer's Contribution during the year
+Benefits paid
+Funds transferred to regional provident fund
+Plan assets as at the year end
+* in Million
+As at March 31, 2017
+Provident Fund
+(Funded)
+As at March 31, 2016
+Gratuity Provident Fund
+(Funded)
+(Funded)
+Gratuity
+(Funded)
+2,874.9
+4,598.6
+Plan assets transferred
+(1,913.9)
+4,598.6
+203.8
+Obligations transferred
+Benefits paid
+(87.6)
+Obligation transferred to regional provident
+592.6
+1.8
+(507.6)
+(4,685.4)
+163.7
+76.6
+(197.0)
+(88.0)
+347.6
+28.9
+(588.1)
+139.5
+(231.5)
+120.9
+fund, net of accumulated unrecognised gains
+- due to change in demographic
+assumptions
+61.8
+(8.7)
+- due to change in financial assumptions
+- due to experience
+54.5
+398.6
+1.7
+Obligation as at the year end
+969.5
+99.6
+2,874.9
+31.0
+(70.7)
+930.7
+Actuarial (gains)/losses on obligations
+(4,632.8)
+2,169.0
+(1,728.0)
+(34.2)
+7.54% In range of 7.54% to
+7.56%
+7.54%
+Expected return on plan assets
+N.A.
+6.81%
+Expected rate of salary increase
+N.A.
+Interest rate guarantee
+N.A.
+Mortality
+Withdrawal
+Retirement Age (years)
+(Funded)*
+Indian Assured
+Lives Mortality
+(2006-08)
+N.A.
+N.A.
+N.A.
+N.A.
+Indian Assured
+Lives Mortality
+N.A. In range of 7.54% to
+7.56%
+10.00%
+8.80%
+N.A.
+N.A.
+8.80%
+Indian Assured
+Lives Mortality
+Indian Assured
+Lives Mortality
+(2006-08)
+13.50%
+(2006-08)
+N.A.
+(2006-08)
+8.00%
+(2006-08)
+15%-18%
+N.A.
+14.50%
+N.A.
+Indian Assured
+Lives Mortality
+(Funded)
+(Unfunded)
+Provident Fund
+961.0
+441.0
+4,632.8
+598.5
+1,728.0
+130.4
+1.8
+4,806.5
+385.5
+28.9
+1,569.3
+122.8
+16.1
+236.4
+(507.6)
+(4,725.5)
+(197.0)
+(588.1)
+9.5
+257.9
+(231.5)
+1,913.9
+4,632.8
+1,728.0
+* in Million
+Year ended
+March 31, 2017
+Year ended
+March 31, 2016
+Pension Fund
+(Unfunded)
+Discount rate
+6.81%
+Gratuity
+(Funded)
+6.81%
+Pension Fund
+Gratuity
+60
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the
+end of the reporting period does not reflect the exposure during the year.
+Note 48
+c)
+11,644.8
+92,624.1
+20,456.1
+3.4
+20,452.7
+15,767.7
+15,767.7
+68,106.9
+61.8
+11,641.4
+56,403.7
+61.8
+As at
+April 01, 2015
+1 - 3 years
+Less than 1
+year
+in Million
+55.4
+216.1
+55.4
+216.1
+160.7
+92,152.3
+46.4
+19,251.2
+72,854.7
+16,075.1
+More than 3
+years
+104,330.7
+4,869.6
+4,869.6
+212.5
+212.5
+1,918.4
+37.3
+1,955.7
+11,804.4
+909.6
+12,714.0
+Cash and cash equivalents
+Trade receivables
+Financial assets
+Total
+Others
+South
+African
+Rand
+Russian
+Rouble
+Euro
+US Dollars
+As at
+March 31, 2017
+* in Million
+a) Significant foreign currency risk exposure relating to trade receivables, cash and cash equivalents, borrowings and trade payables
+The Company's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in US Dollars,
+Euros, South African Rand and Russian Rouble) and foreign currency borrowings (primarily in US Dollars). As a result, if the value of the
+Indian rupee appreciates relative to these foreign currencies, the Company's revenues and expenses measured in Indian rupees may decrease
+or increase and vice-versa. The exchange rate between the Indian rupee and these foreign currencies have changed substantially in recent
+periods and may continue to fluctuate substantially in the future. Consequently, the Company uses both derivative and non-derivative
+financial instruments, such as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial
+liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and
+recognized assets and liabilities.
+Foreign exchange risk
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 139
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and
+prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as
+a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all
+foreign currency receivables and payables and all short term and long-term debt. The Company is exposed to market risk primarily related
+to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company's exposure to market risk is a
+function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.
+Market risk
+5,082.1
+5,082.1
+4.9
+16,070.2
+17,724.5
+17,724.5
+Forward exchange contracts
+Currency options
+Non derivative
+Borrowings
+Trade payables
+Other financial liabilities
+Derivative
+Forward exchange contracts
+Less than 1
+year
+1-3 years
+More than 3
+years
+* in Million
+As at
+March 31, 2017
+53,042.1
+7,555.7
+75.7
+60,673.5
+20,942.0
+20,942.0
+15,816.1
+6.8
+15,822.9
+89,800.2
+7,562.5
+75.7
+97,438.4
+99.2
+For the years ended March 31, 2017, March 31, 2016 and April 01, 2015, every 5% strengthening in the exchange rate between the
+Indian rupee and the respective currencies for the above mentioned financial assets/liabilities would decrease the Company's loss and
+increase the Company's equity by approximately ₹ 1,760.6 Million, ₹ 2,720.8 Million and ₹2,360.9 Million respectively. A 5% weakening
+of the Indian rupee and the respective currencies would lead to an equal but opposite effect.
+1,723.5
+18.0
+1,741.5
+Derivative
+Trade payables
+58,352.7
+46.4
+19,246.3
+39,060.0
+As at
+March 31, 2016
+More than 3
+years
+year
+1-3 years
+Less than 1
+in Million
+99.2
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+The table below provides details regarding the contractual maturities of significant financial liabilities:
+Non derivative
+Borrowings
+Trade payables
+Other financial liabilities
+Derivative
+Forward exchange contracts
+Non derivative
+Borrowings
+Other financial liabilities
+5,046.2
+160.7
+1,117.9
+11.7
+1,129.6
+471.2
+63.4
+5,046.2
+1.1
+259.5
+2,548.0
+14,276.4
+61,464.6
+471.2
+63.4
+1.1
+259.5
+62,259.8
+Sensitivity
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+140 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+71,765.8
+464.1
+149.1
+2.6
+1,250.5
+69,899.5
+1,752.8
+14,276.4
+Product settlement, claims, recall charges and trade
+commitments
+Trade payables
+45,435.4
+Financial assets
+Trade receivables
+Cash and cash equivalents
+Financial liabilities
+b)
+As at
+in Million
+April 01, 2015
+Russian
+South
+US Dollars
+Euro
+commitments
+Others
+Rouble African Rand
+10,786.1
+400.4
+11,186.5
+1,159.9
+13.2
+1,173.1
+1,240.4
+579.8
+70.2
+1,310.6
+739.4
+53.2
+579.8
+792.6
+14,505.6
+537.0
+15,042.6
+Borrowings
+45,435.4
+Total
+14,674.5
+FINANCIAL STATEMENTS 80-278
+986.3
+23.2
+1,009.5
+882.5
+0.3
+161.4
+270.1
+57,798.1
+in Million
+Financial assets
+Trade receivables
+Financial liabilities
+17,349.7
+1,297.7
+56,483.8
+16,052.0
+2,087.2
+2,087.2
+1,194.1
+26.0
+1,220.1
+1,620.1
+69.1
+1,689.2
+10,164.3
+1,179.4
+11,343.7
+Total
+Others
+Russian
+South
+Rouble African Rand
+Euro
+US Dollars
+March 31, 2016
+14,674.5
+As at
+commitments
+14,298.5
+Product settlement, claims, recall charges and trade
+6,998.7
+464.1
+149.1
+2.6
+1,250.5
+5,132.4
+21,610.4
+976.6
+22,587.0
+Trade payables
+50,092.6
+Financial liabilities
+14,298.5
+50,092.6
+Borrowings
+37,356.5
+37,356.5
+Trade payables
+4,828.8
+882.5
+0.3
+161.4
+270.1
+6,143.1
+Product settlement, claims, recall charges and trade
+Borrowings
+Cash and cash equivalents
+Maximum
+balance
+March 31, 2017
+FOR THE YEAR ENDED MARCH 31, 2017
+As at
+March 31, 2016
+ANNUAL REPORT 2016-17 153
+March 31, 2017
+As at
+* in Million
+Zenotech Laboratories Limited,
+schedule:
+Interest bearing with specified payment
+Loans
+Loans/Advances outstanding from an
+Associate
+Green Eco Development Centre Ltd
+Neetnav Real Estate Private Limited
+Ranbaxy Drugs Limited
+Maximum
+balance
+March 31, 2016
+Loans/Advances outstanding from
+Subsidiaries
+Note 54
+RELATED PARTY DISCLOSURES AS PER (IND AS 24) ANNEXURE "A"
+Note 53
+Net increase in cash and cash equivalents represents movement in cash credit facilities considered as a component of cash and cash
+equivalents under Ind AS which as per previous GAAP, was considered as financing activity. Other Ind AS adjustments are either non cash
+adjustments or are regrouping among the cash flows from operating, investing and financing activities and has no impact on the net cash
+flow for the year ended 31st March, 2016 as compared with the previous GAAP.
+Effect of transition to Ind AS on Standalone Cash Flow Statement for the year ended March 31, 2016
+Under previous GAAP, actuarial gains and losses were recognised in statement of profit and loss. Under Ind AS, the actuarial gains and
+losses form part of remeasurement of net defined benefit liability/asset which is recognised in other comprehensive income in the
+respective periods.
+Employee benefits
+Under previous GAAP, the Group had created provision for doubtful debts based on specific amount for incurred losses. Under Ind AS,
+the allowance for doubtful debts has been determined based on expected credit loss model.
+g)
+f)
+e) Expected credit loss
+LOANS/ADVANCES GIVEN TO SUBSIDIARIES AND ASSOCIATES
+193.5
+238,529.2
+Ind AS 101 provides the option to apply Ind AS 103 prospectively
+from the transition date or from a specific date prior to the transition
+date. This provides relief from full retrospective application that
+would require restatement of all business combinations prior to the
+transition date.
+Total equity as per Ind AS
+Under previous GAAP, derivative instruments entered into for hedging the foreign currency fluctuation risk were accounted for on the
+principles of prudence. Pursuant to this, losses, if any, on Mark to Market basis, were recognised and gains were not recognised. Under
+Ind AS, gains on derivative instruments have been measured at fair value through profit or loss and gains or losses are recognised in the
+statement of profit and loss.
+b) Discounting / (unwinding of discount) of provisions
+Under Ind AS, long term provisions are to be measured at present value at the date of transition.
+c) Separately acquired intangible assets
+Under Ind AS, separately acquired intangible assets shall be capitalised which were not eligible for capitalisation under previous GAAP.
+d) Proposed dividend (including dividend distribution tax)
+Derivative instruments at fair value through profit or loss
+Under Ind AS, dividend to holders of equity instruments is recognised as a liability in the period in which the obligation to pay is
+established. Under previous GAAP, dividend proposed was recorded as a provision in the period to which it relates.
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Compound financial instruments
+Under Ind AS 32, the Company should split compound financial
+instruments into separate equity and liability components. Ind AS 101
+provides that if the liability component is no longer outstanding at the
+date of transition, a first-time adopter does not have to separate it from
+the component instrument. The Company has elected to apply this
+exemption for its compound financial instruments.
+154 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Fair value measurement of financial assets and financial
+liabilities at initial recognition
+a)
+(12,544.9)
+36,392.0
+(23,680.3)
+166.8
+Previous
+GAAP
+As at
+April 01, 2015
+Effect of
+transition to
+Ind AS (Refer
+footnote g)
+* in Million
+Ind AS
+Year ended March 31, 2016
+* Equity as per previous GAAP includes Share capital, Share suspense account, Reserves and Surplus
+Notes on reconciliations between previous GAAP and Ind AS
+Reconciliation of cash flow
+Net cash flows from investing activities
+Net cash flows from financing activities
+Net increase/ (decrease) in cash and cash equivalents
+(12,444.5)
+36,301.9
+(24,251.2)
+(393.8)
+(100.4)
+90.1
+570.9
+560.6
+Net cash flows from operating activities
+The Company has applied the requirements in paragraph B5.1.2A (b)
+of Ind AS 109 prospectively to transactions entered into on or after
+the date of transition to Ind AS. This exemption has been availed by
+the Company.
+Non - current assets held for sale and discontinued
+operations
+Ind As 105 requires that asset classified as non - current as per Ind
+AS 1 are not reclassified as current assets until they meet criteria
+to be classified as held for sale. The adopter can opt to either value
+those assets at carrying amount or fair value less cost of sale at the
+transition date and record any difference between such amount
+and carrying value directly to retained earnings. The Company has
+applied for this exemption.
+824.6
+1,222.1
+Recognition of intangible assets not eligible for recognition under Previous GAAP
+с
+30.1
+Adjustment for proposed dividend (including corporate dividend tax)
+d
+753.7
+2,481.5
+Provision for expected credit losses
+e
+(190.5)
+(113.9)
+Other Ind AS adjustments
+f
+8,689.2
+b
+923.2
+a
+Business Combinations
+The Company elected to apply Ind AS 103 prospectively to business
+combinations occurring after its transition date. Business combinations
+occurring prior to the transition date have not been restated.
+Share-based payment transactions
+As per previous GAAP, the Company had applied the fair value
+recognition and measurement principles similar to those prescribed
+under Ind AS 102 for all options granted before the Transition Date.
+Consequently, this exemption was not required to be applied.
+Excise duty
+Under the previous GAAP, excise duty was netted off against sale of
+products. However, under Ind AS, excise duty is included in sale of
+products and is separately presented as expense in the statement of
+profit and loss.
+Reconciliation of total equity
+Footnote No.
+As at
+March 31, 2016
+* in Million
+As at
+April 01, 2015
+214,830.9
+227,713.7
+Total equity as per previous GAAP *
+Add/(less): Adjustments for GAAP differences
+Effect of measuring derivative instruments at fair value through profit or loss
+Discount/(unwinding of discount) on provisions
+78.1
+218,907.0
+India
+08-79
+Considered doubtful
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+1
+Fair value measurement of Financial Instruments
+5
+(247.9)
+(11,123.0)
+Provisions [Refer Note 2(m)]
+6
+Write down in value of inventories (Refer Note 13)
+7
+Contingencies (Refer Note 40)
+Note 59
+2
+When the fair values of financials assets and financial liabilities
+recorded in the financial statements cannot be measured
+based on quoted prices in active markets, their fair value is
+measured using valuation techniques which involve various
+judgements and assumptions.
+Useful lives of property, plant and equipment and intangible
+assets
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
+which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty
+and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial
+statements is included in the following notes:
+Others
+Total
+notes *
+2,275,500
+4,274,623
+13,536,545
+(11,919,675)
+6,550,123
+13,536,545
+(11,919,675)
+(2,275,500)
+156 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+5,891,493
+* Specified bank notes are currency notes of 500 and 1000 discontinued vide notification S.O. 3407(E) dated November 08, 2016
+Note 57
+Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof:
+* 24.1 Million (Previous Year 116.5 Million).
+Note 58
+USE OF ESTIMATES AND JUDGEMENTS
+The preparation of the Company's financial statements requires the management to make judgements, estimates and assumptions that
+affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent
+liabilities. Actual results may differ from these estimates.
+(2,275,500)
+5,891,493
+1
+3
+4
+6
+7
+date. Erstwhile RLL along with its subsidiaries and associates
+was operating as an integrated international pharmaceutical
+organisation with business encompassing the entire value
+chain in the production, marketing and distribution of
+pharmaceutical products. The scheme was accordingly been
+given effect to in the financial statements for the year ended
+March 31, 2015.
+On April 10, 2015, in terms of the Scheme of Arrangement
+0.80 equity share of 1 each (Number of Shares 334,956,764
+including 186,516 Shares held by ESOP trust) of the Company
+has been allotted to the shareholders of erstwhile RLL for
+every 1 share of *5 each (Number of Shares 418,695,955
+including 233,146 shares held by ESOP trust) held by them
+in the share capital of erstwhile RLL, after cancellation of
+6,967,542 shares of erstwhile RLL. An amount of 1,792.4
+Million being the excess of share capital of erstwhile RLL
+over the amount recorded as the share capital (which was
+outstanding to be issued by the Company as on April 1, 2015
+and disclosed as Share Suspense Account) was credited to
+Capital Reserve.
+Out of a MAT credit entitlement of 8,222.7 Million which
+was written down by the erstwhile RLL during the quarter
+ended December 31, 2014, an amount of * 7,517.0 Million
+was recognised by the Company in the year ended March
+31, 2015, on a reassessment by the Management, based on
+convincing evidence that the combined amalgamated entity
+would pay normal income tax during the specified period and
+would therefore be able to utilize the MAT credit entitlement
+so recognised.
+Since the US-FDA import alert at Karkhadi facility in March
+2014, the Company remained fully committed to implement
+all corrective measures to address the observations made by
+the US-FDA with the help of third party consultant. Substantial
+progress has been made at the Karkhadi facility in terms of
+completing the action items to address the observations made
+by the US-FDA in its warning letter issued in May 2014. The
+Company is continuing to work closely and co-operatively with
+the US-FDA to resolve the matter. The contribution of this
+facility to Company's revenues is not significant.
+5
+The US-FDA, on January 23, 2014, had prohibited using API
+manufactured at Toansa facility for manufacture of finished
+drug products intended for distribution in the U.S. market.
+Consequentially, the Toansa manufacturing facility was subject
+9
+10
+to certain provisions of the consent decree of permanent
+injunction entered in January 2012 by erstwhile Ranbaxy
+Laboratories Ltd (which was merged with Sun Pharmaceutical
+Industries Ltd in March 2015). In addition, the Department of
+Justice of the USA ('US DOJ'), United States Attorney's Office
+for the District of New Jersey had also issued an administrative
+subpoena dated March 13, 2014 seeking information primarily
+related to Toansa manufacturing facility for which a Form
+483 containing findings of the US-FDA was issued in January
+2014. The Company is continuing to fully cooperate and is in
+dialogue with the US DOJ, and continuing to provide requisite
+information.
+In December 2015, the US-FDA issued a warning letter to the
+manufacturing facility at Halol. Subsequently, a re-inspection
+was carried out by the US-FDA in November 2016. At the
+conclusion of the inspection, FDA issued a Form 483 with
+nine observations. The Company has submitted its response
+documenting the corrective measures to resolve the 483
+observations. The Company is providing regular updates to US-
+FDA on the progress of the corrective actions. The Company is
+continuing to manufacture and distribute products to the U.S
+from Halol facility and at the same time working closely and
+co-operatively with the US-FDA to resolve the matter.
+In September 2013, the US-FDA had put the Mohali facility
+under import alert and was also subjected to certain provisions
+of the consent decree of permanent injunction entered in
+January 2012 by erstwhile Ranbaxy Laboratories Ltd (which
+was merged with Sun Pharmaceutical Industries Ltd in
+March 2015). In November 2016, the US-FDA conducted
+a re-inspection of the Mohali facility post the completion
+of remediation work at the facility. As a result of this re-
+inspection, in March 2017, the US-FDA lifted the import alert
+and indicated that the facility was in compliance with the
+requirements of cGMP provisions mentioned in the consent
+decree. The Mohali facility will continue to remain under
+consent decree under certain other provisions of the decree
+for a fixed period of time to demonstrate sustainable cGMP
+compliance.
+In accordance with Ind AS 108 "Operating Segments", segment
+information has been given in the consolidated Ind AS financial
+statements, and therefore, no separate disclosure on segment
+information is given in these financial statements.
+8
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+Property, plant and equipment and intangible assets
+represent a significant proportion of the asset base of the
+Company. The charge in respect of periodic depreciation and
+amortisation is derived after determining an estimate of an
+asset's expected useful life and the expected residual value
+at the end of its life. The useful lives and residual values of
+Company's assets are determined by the management at the
+time the asset is acquired and reviewed periodically, including
+at each financial year end. The lives are based on historical
+experience with similar assets as well as anticipation of
+future events, which may impact their life, such as changes in
+technical or commercial obsolescence arising from changes
+or improvements in production or from a change in market
+demand of the product or service output of the asset.
+Assets and obligations relating to employee benefits
+The employment benefit obligations depends on a number of
+factors that are determined on an actuarial basis using a number
+of assumptions. The assumptions used in determining the net
+cost/(income) include the discount rate, inflation and mortality
+assumptions. Any changes in these assumptions will impact upon
+the carrying amount of employment benefit obligations.
+Tax expense [Refer Note 2(q)]
+The Company's tax jurisdiction is India. Significant judgements
+are involved in determining the provision for income taxes,
+if any, including amount expected to be paid/recovered for
+uncertain tax positions. Further, significant judgement is
+exercised to ascertain amount of deferred tax asset (DTA)
+that could be recognised based on the probability that future
+taxable profits will be available against which DTA can be
+utilized and amount of temporary difference in which DTA can
+not be recognised on want of probable taxable profits.
+2
+3
+4
+Consequent to the amalgamation of erstwhile Ranbaxy
+Laboratories Limited (RLL) into the Company as referred in
+Note 59(4), Zenotech Laboratories Limited ('Zenotech') had
+become an associate of the Company. The erstwhile RLL had
+granted certain loans to Zenotech which were outstanding and
+inherited by the Company. The Company has not granted any
+further loans to Zenotech post effective date of amalgamation
+i.e. March 24, 2015. The balance of this inherited outstanding
+loan is 512.0 Million. The Company is in process of evaluating
+various options in relation to recovery of the outstanding loans
+and interest thereon of 214.9 Million (March 31, 2016:
+151.5 Million, April 01, 2015: 88.8 Million).
+Intangible assets consisting of trademarks, designs, technical
+knowhow, non-compete fees and other intangible assets
+are available to the Company in perpetuity. The amortisable
+amount of intangible assets is arrived at based on the
+management's best estimates of useful lives of such assets
+after due consideration as regards their expected usage, the
+product life cycles, technical and technological obsolescence,
+market demand for products, competition and their expected
+future benefits to the Company.
+Exceptional item for previous year represents charge
+on account of impairment of certain Property, Plant and
+Equipment and Intangible assets. This charge had arisen on
+account of the integration and optimization exercise being
+carried out for certain manufacturing facilities. The recoverable
+amount of the said assets is its value in use which is determined
+for a period of less than one year.
+Pursuant to the Scheme of Arrangement u/s 391 to 394 of
+the Companies Act 1956 for amalgamation of erstwhile RLL
+with the Company as sanctioned by the Hon'ble High Court
+of Gujarat and Hon'ble High Court of Punjab and Haryana on
+March 24, 2015 (effective date) all the assets, liabilities and
+reserves of erstwhile RLL were transferred to and vested in
+the Company with effect from April 1, 2014, the appointed
+ANNUAL REPORT 2016-17 157
+SUN
+Specified bank
+Considered good
+All amounts in absolute
+Permitted receipts during November 08, 2016 and December 30, 2016
+Permitted payments during November 08, 2016 and December 30, 2016
+Amount deposited in banks
+* Includes interest accrued on loans amounting to 214.9 Million in March 31, 2017, 151.5 Million in March 31, 2016 and 88.8 million in April 01, 2015.
+These loans have been granted to the above entities for the purpose of their business.
+326.8
+ANNUAL REPORT 2016-17 155
+SUN
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+274.0
+FOR THE YEAR ENDED MARCH 31, 2017
+In respect of any present obligation as a result of past event that could lead to a probable outflow of resources, provisions has been made,
+which would be required to settle the obligation. The said provisions are made as per the best estimate of the management and disclosure as
+per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has been given below:
+in Million
+Product and
+Sales related*
+As at
+March 31, 2017
+Consultancy
+charges
+Total
+Note 55
+Product and
+Sales related*
+274.0
+663.5
+726.9
+Less: Provision for doubtful
+726.9
+loans/advances
+4.8
+4.4
+326.8
+4.4
+0.4
+0.4
+25.6
+25.6
+726.9
+663.5
+663.5
+4.4
+As at
+March 31, 2016
+Consultancy
+Total
+charges
+1,319.0
+Less: Utilisation / settlement
+At the end of the year
+(2,000.6)
+24,997.0
+(2,000.6)
+24,997.0
+1,319.0
+(2,498.0)
+26,206.6
+(3,006.1)
+26,206.6
+(*) includes provision for trade commitments, discounts, rebates, price reduction and product returns
+Note 56
+DETAILS OF SPECIFIED BANK NOTES HELD AND TRANSACTED DURING THE PERIOD NOVEMBER 08, 2016
+AND DECEMBER 30, 2016 IS AS UNDER:
+Cash in hand as on November 08, 2016
+(508.1)
+(486.8)
+(486.8)
+Add/(less): Foreign currency exchange
+fluctuation
+At the commencement of the year
+26,206.6
+Add: Provision for the year
+840.0
+26,206.6
+840.0
+26,018.4
+508.1
+26,526.5
+829.2
+829.2
+Add: Unwinding of discounts on provisions
+437.8
+437.8
+538.0
+538.0
+Cash in hand as on December 30, 2016
+(10,875.1)
+At the date of transition to Ind AS, the Company has measured all
+derivatives at fair value through profit or loss and eliminated all
+deferred losses and gains arising on derivatives that were reported in
+accordance with previous GAAP assets or liabilities.
+30.1
+(76.7)
+Exercised during the year #^
+Lapsed during the year
+Outstanding, end of the year
+Exercisable at the end of the year $
+$ Include options exercised, pending allotment.
+4,968
+Forfeited during the year
+6.3
+0.9
+「「
+455,766
+6.3
+6.3
+0.9
+6.3
+(43,326)
+Total Number of options outstanding
+No. of options on Account of rounding off
+of the fraction to the next higher whole
+number as per the merger Scheme
+Weighted-average
+exercise prices (*)
+average remaining
+contractual life
+(years)
+Outstanding at the commencement of the year
+Number of options - post-merger of Erstwhile RLL
+449,430
+No of options of certain overseas employees
+6.3
+1.7
+1,368
+6.3
+6.3
+0.9
+with the transferee company
+6.3
+Exercise price (₹)
+6.3
+(224,201)
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+The following table summarizes the assumptions used in calculating
+the grant date fair value for instrument granted in the year ended
+March 31, 2015: @@
+Particulars
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+Grant Date
+Year ended 31 March, 2015
+08-May-14
+0.43%
+(b)
+Expected life of options from the
+date(s) of grant
+1.25, 2.25 and 3.25 years
+8.57% (1.25 years)
+8.65% (2.25 years)
+Dividend yield
+6.3
+150 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+^ Weighted average share price on the date of exercise 848.68
+6.3
+6.3
+(18,326)
+6.3
+6.3
+169,913
+During the current year, the Company has recorded a Stock-based employee compensation expense of 30.8 Million (March 31, 2016:
+*90.6 Million). The amount has been determined under a fair value method wherein the grant date fair value of the options was calculated
+by using Black Scholes pricing model.
+6.3
+1.1
+40,259
+6.3
+6.3
+0.2
+#Shares allotted by the ESOP Trust against the options exercised including 1,066 shares equivalent to 1,333 shares issued by Erstwhile RLL prior to 10th April,
+2015.
+6.3
+Stock options
+(numbers)
+Weighted-
+March 31, 2016
+Outstanding at the end of the year^
+610,739
+270.0-703.0
+480.9
+2.5
+Exercisable at the end of the year^
+479.9
+610,739
+480.9
+^ Includes options exercised, pending allotment
+#Weighted average share price on the date of exercise 823.63
+ANNUAL REPORT 2016-17
+149
+SUN
+270.0-703.0
+PHARMA
+270.0-703.0
+518.9
+158
+270.0-703.0
+496.0
+3.3
+the fraction to the next higher whole number
+as per the merger Scheme
+Total Number of options outstanding
+(111,022)
+1,169,586
+496.0
+3.3
+Exercised during the year#
+Lapsed during the year
+(447,825)
+270.0-703.0
+270.0-703.0
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+The movement of the options (post split) granted under SUN-ESOP 2015 for the current year is
+(13,435)
+6.3
+6.3
+Outstanding, end of the year*
+Exercisable at the end of the year*
+52,284
+6.3
+6.3
+0.4
+941
+6.3
+6.3
+* Includes options exercised, pending allotment
+#Weighted average share price on the date of exercise 802.00
+6.3
+6.3
+(93,015)
+6.3
+March 31, 2017
+Weighted-
+Stock options
+(numbers)
+Exercise price (*)
+Weighted-average average remaining
+exercise prices (*) contractual life
+(years)
+Outstanding at the commencement of the year
+169,913
+6.3
+6.3
+1.1
+Forfeited during the year
+Exercised during the year#
+Lapsed during the year
+(11,179)
+6.3
+8.71% (3.25 years)
+(c)
+Risk free interest rate
+Expected volatility
+270.0-562.5
+2.5
+480.9
+270.0-703.0
+610,739
+(62,682)
+Range of exercise Weighted-average average remaining
+contractual life
+(years)
+500.1
+prices (*) exercise prices (*)
+Weighted-
+March 31, 2017
+$ Weighted average share price on the date of exercise 690.23
+* Includes options exercised, pending allotment
+*
+Exercisable at the end of the year
+Stock options
+(numbers)
+*
+(146,379)
+521.7
+Outstanding at the commencement of the year
+(years)
+average remaining
+contractual life
+Range of exercise Weighted-average
+prices (*) exercise prices (*)
+Stock options
+(numbers)
+Weighted-
+270.0-562.5
+March 31, 2016
+462.9
+270.0-562.5
+1.9
+462.9
+270.0-562.5
+401,678
+401,678
+1.9
+Outstanding at the end of the year'
+Lapsed during the year
+Exercised during the year $
+Total comprehensive income as per Ind AS
+Footnote No.
+* in Million
+Year ended
+March 31, 2016
+(10,733.6)
+99.4
+a
+Other comprehensive income
+a
+b
+(468.3)
+f
+266.8
+C
+e
+(0.7)
+Net profit as per Ind AS
+Other Ind AS adjustments
+Remeasurement of defined benefit obligation recognised in OCI under Ind AS
+Recognition of intangible assets not eligible for recognition under Previous GAAP
+Provision for expected credit losses
+Outstanding at the commencement of the year
+The movement of the options (post split) granted under SUN-ESOS 2015
+Pursuant to the Scheme of Amalgamation, Sun Pharmaceutical Industries Limited ('transferee company') formulated two Employee Stock
+Option Schemes, namely, (i) SUN Employee Stock Option Scheme-2015 (SUN-ESOS 2015) to administer ESOS 2005 (ii) SUN Employee
+Stock Option Plan-2015 (SUN-ESOP 2015) to administer ESOP 2011. These scheme provide that the number of transferee options issued
+shall equal to the product of number of transferor options outstanding on effectiveness of Scheme multiplied by the Share exchange ratio
+(0.80) and each transferee option shall have an exercise price per equity share equal to transferor option exercise price per equity share
+divided by the share exchange ratio (0.80) and fractions rounded off to the next higher whole number. The terms and conditions of ESOS,
+of transferee company are not less favourable than those of ESOSs of erstwhile RLL. No new grants shall be made under these schemes and
+these schemes shall operate only for the purpose of administering the exercise of options already granted/vested on an employee pursuant
+to SUN-ESOS 2015 and SUN-ESOP 2015.
+The stock options outstanding as on June 30, 2005 are proportionately adjusted in view of the sub-division of equity shares of the Erstwhile
+RLL from the face value of ₹ 10 each into 2 equity shares of ₹ 5 each
+In accordance with the above approval of issuance of options, stock options have been granted from time to time.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Reconciliation of total comprehensive income
+Net profit as per previous GAAP
+Effect of measuring derivative instruments at fair value through profit or loss
+Effect of measuring investments at fair value through profit or loss
+Discount/(unwinding of discount) on provisions
+Number of options - post-merger of Erstwhile RLL
+7.9
+1,169,545
+496.0
+USD 50 Million (March 31, 2016: USD 50 Million, April
+01, 2015: USD 50 Million) equivalent to * 3,242.8
+Million (March 31, 2016: 3,313.0 Million, April 01,
+2015:
+3,125.2 Million). The loan was taken on September 20,
+2012 and is repayable on September 19, 2017.
+(e) USD 100 Million (March 31, 2016: USD 100 Million,
+April 01, 2015: USD 100 Million) equivalent to 6,485.5
+Million (March 31, 2016: 6,626.0 Million, April 01,
+2015: 6,250.5 Million). The loan was taken on June 4,
+2013 and is repayable on June 3, 2018.
+(f)
+USD Nil (March 31, 2016: USD 16 Million, April 01,
+2015: USD 28 Million) equivalent to Nil (March 31,
+2016:
+1,060.2 Million, April 01, 2015: 1,750.1 Million).
+Loan of USD 40 Million was taken on March 25, 2011
+and was repayable in 3 installments viz., 30% each of the
+drawn amount at the end of 4th year and 5th year and
+40% of the drawn amount at the end of the 6th year.
+The last installment of USD 16 Million has been repaid
+in current year. First and Second installment of USD 12
+Million each has been repaid in previous years.
+USD 10 Million (March 31, 2016: USD 20 Million, April
+01, 2015: USD 30 Million) equivalent to 648.6 Million
+(March 31, 2016: 1,325.2 Million, April 01, 2015:
+*1,875.2 Million). The loan was taken on June 30, 2011
+and is repayable in 3 equal installments of USD 10 Million
+each at the end of 4th year, 5th year and 6th year. Second
+installment of USD 10 Million has been repaid in current
+year and first installment of USD 10 Million was repaid
+in previous year. The last installment is due on June 30,
+2017.
+ANNUAL REPORT 2016-17 151
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+(II)
+(g) USD 50 Million (March 31, 2016: USD 50 Million, April 01,
+2015: USD Nil) equivalent to 3,242.8 Million (March 31,
+2016: 3,313.0 Million, April 01, 2015: Nil). The loan was
+taken on August 11, 2015 and is repayable on
+August 11, 2017.
+(h)
+SUN
+(i)
+USD Nil (March 31, 2016: USD Nil, April 01, 2015: USD
+30 Million) equivalent to Nil (March 31, 2016: Nil,
+April 01, 2015: 1,875.2 Million). The loan was taken on
+September 9, 2010. The outstanding amount has been
+repaid in previous year.
+April 01, 2015: 3,125.2 Million). The loan was taken
+Grant date fair value
+40.47%
+462.39 (1.25 years)
+460.79 (2.25 years)
+459.16 (3.25 years)
+@@ Assumptions used are as applicable at the date of grant in the
+context of erstwhile RLL
+The Black-Scholes option-pricing model was developed for
+estimating fair value of trade options that have no vesting
+restrictions and are fully transferable. Since options pricing
+models require use of subjective assumptions, changes therein
+can materially affect fair value of the options. The options pricing
+models do not necessary provide a reliable measurable of fair value
+of options. The volatility in the share price is based on volatility of
+historical stock price of the erstwhile RLL for last 60 months.
+Note 51
+on August 12, 2010. The outstanding amount has been
+repaid in previous year.
+BORROWINGS
+(1)
+Unsecured External Commercial Borrowings (ECBs) has 6
+loans aggregating of USD 256 Million (March 31, 2016: USD
+266 Million, April 01, 2015: USD 288 Million) equivalent
+to 16,602.9 Million (March 31, 2016: 17,625.2 Million,
+April 01, 2015: 18,001.4 Million) [(included in long term
+borrowings
+*7,523.2 Million (March 31, 2016: 15,902.4 Million, April
+01, 2015: 11,625.9 Million) and in current maturity of
+long term debt 9,079.7 Million (March 31, 2016: 1,722.8
+Million, April 01, 2015: 6,375.5 Million))]. For the ECB loans
+outstanding as at March 31, 2017, the terms of repayment for
+borrowings are as follows:
+(a)
+USD Nil (March 31, 2016: USD Nil, April 01, 2015: USD
+50 Million) equivalent to Nil (March 31, 2016: Nil,
+(d)
+(A) Details of long term borrowings and current maturities
+of long term debt (included under other current
+financial liabilities)
+USD 30 Million (March 31, 2016: USD 30 Million, April
+01, 2015: USD Nil) equivalent to * 1,945.7 Million
+(March 31, 2016: 1,987.8 Million, April 01, 2015:
+Nil). The loan was taken on September 09, 2015 and is
+repayable on September 08, 2017.
+USD 16 Million (March 31, 2016: USD Nil, April 01,
+2015: USD Nil) equivalent to ₹ 1,037.7 Million (March
+31, 2016: Nil, April 01, 2015: Nil). The loan was
+taken on March 24, 2017 and is repayable on March 22,
+2019.
+152 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Determining whether an arrangement contains a lease
+The Company has applied Appendix C of Ind AS 17 "Determining
+whether an Arrangement contains a Lease" to determine whether an
+arrangement existing at the transition date contains a lease on the
+basis of facts and circumstances existing at that date
+On transition to Ind AS, the Company has elected to continue with
+the carrying value of all of its property, plant and equipment and
+intangible assets recognised as at April 01, 2015 measured as per the
+previous GAAP and use that carrying value as the deemed cost of the
+property, plant and equipment and intangible assets.
+Designation of previously recognised financial instruments
+Ind AS 101 allows an entity to designate investments in equity
+instruments at FVOCI on the basis of the facts and circumstances as
+at the date of transition to Ind AS. The Company has elected to apply
+this exemption for its investments in certain equity instruments.
+41
+No. of options on Account of rounding off of
+with the transferee company
+3.3
+Deemed cost of property, plant and equipment and
+intangible assets
+The Company has assessed conditions for classification of the
+financial assets on the basis of the facts and circumstances that were
+exist on the date of transition to Ind AS.
+Classification and measurement of financial assets
+Hedge accounting
+Unsecured Loan under Foreign Currency Non Resident (FCNR
+B) Scheme of USD 50 Million (March 31, 2016: USD 50 Million,
+April 01, 2015: USD Nil) equivalent to 3,242.8 Million (March
+31, 2016: 3,313.0 Million, April 01, 2015 : Nil). The loan was
+taken on August 19, 2015 and is repayable on August 18, 2017.
+(III) Redeemable non-convertible debentures of Nil (March 31,
+2016: Nil, April 01, 2015: 5,000.0 Million) issued on
+November 23, 2012 for a period of 36 months at a coupon
+rate of 9.20% p.a. Such debentures were secured by a pari-
+passu first ranking charge on the Company's specified fixed
+assets so as to provide a fixed asset cover of 1.25x and were
+listed on the National Stock Exchange. The loan was taken on
+November 23, 2012 and has been repaid in previous year.
+(IV) Unsecured term loan of Nil (March 31, 2016: Nil, April 01,
+2015: 2,500.0 Million) has been repaid in previous year.
+(V)
+Secured term loan from department of biotechnology of
+* 108.2 Million (March 31, 2016: 77.3 Million, April 01, 2015
+:77.3 Million) has been secured by hypothecation of assets
+and goods of the Company. The loan is repayable in 10 equal
+half yearly installments commencing from December 26, 2018,
+last installment is due on June 26, 2023.
+The Company has not defaulted on repayment of loan and interest
+payment thereon during the year.
+(B) Details of securities for Short term Borrowings are as
+follows:
+First charge has been created on a pari-passu basis, by
+hypothecation of inventories and receivables, both present
+and future.
+Note 52
+FIRST TIME IND AS ADOPTION RECONCILIATION
+Explanation to transition to Ind AS
+Ind AS 101 -"First-time Adoption of Indian Accounting Standards"
+requires that all Ind AS and interpretations that are issued and
+effective for the first Ind AS financial statements which is for the year
+ended March 31, 2017 for the Company, be applied retrospectively
+and consistently for all financial years presented, except for the
+Company has availed certain exemptions and complied with the
+mandatory exceptions provided in Ind AS 101, as described below.
+The Company has recognised all assets and liabilities whose
+recognition is required by Ind AS and has not recognised items of
+assets or liabilities which are not permitted by Ind AS, reclassified
+items from previous GAAP to Ind AS as required under Ind AS and
+applied Ind AS in measurement of recognised assets and liabilities.
+Set out below are the Ind AS 101 optional exemptions availed as
+applicable and mandatory exceptions applied in the transition from
+previous GAAP to Ind AS.
+Derecognition of financial assets and financial
+liabilities
+The Company has applied the derecognition requirements of
+financial assets and financial liabilities prospectively for transactions
+occurring on or after the transition date.
+270.0-703.0
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+SUN
+Taro Hungary Intellectual Property Licensing Limited Liability
+Company (Refer Footnote 3)
+473.9
+473.9
+ANNUAL REPORT 2016-17 165
+SUN
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Particulars
+Sales of Investment in Sun Pharma Holding
+Subsidiaries
+Subsidiaries
+Loan Repaid
+Subsidiaries
+Dividend Income on Preference Shares
+Subsidiaries
+Dividend Income on Equity Shares
+Subsidiaries
+Interest Income
+Loan Taken
+0.4
+4.8
+0.4
+41.6
+7.7
+171.6
+Subsidiaries
+7.7
+171.6
+Purchase of Investment in an Associate
+0.0
+Associates (March 31, 2016 ₹ 16,380)
+0.0
+Loans / Deposit given
+Subsidiaries
+Loans received back
+Subsidiaries
+Redemption of Preference Shares in Subsidiary
+Subsidiaries
+0.4
+0.4
+4.8
+Subsidiaries (24,066)
+41.5
+Associates
+Subsidiaries
+69.9
+0.0
+70.4
+69.9
+116.4
+1,188.8
+116.4
+1,188.8
+23.5
+25.2
+19.3
+23.8
+Enterprise under significant influence of key managerial personnel or their relatives
+4.2
+1.4
+Rent expense
+2.2
+9.6
+Subsidiaries
+70.4
+Interest Expense
+2,000.7
+394.3
+Rent Income
+Subsidiaries
+March 31, 2017
+in Million
+March 31, 2016
+32,318.4
+37,994.6
+32,318.4
+37,994.6
+9,200.0
+35,480.0
+9,200.0
+35,480.0
+17,219.9
+27,545.7
+17,219.9
+27,545.7
+40.0
+394.3
+40.0
+2,000.7
+2.2
+Enterprise under significant influence of key managerial personnel or their relatives
+Finance (including investment and equity contributions)
+162.6
+20.6
+Enterprise under significant influence of key managerial personnel or their relatives
+Purchase of Property, Plant and Equipment
+15.3
+1.1
+299.6
+4.5
+Subsidiaries
+299.6
+0.5
+Enterprise under significant influence of key managerial personnel or their relatives
+Sale of goods
+4.0
+26,332.2
+23,393.0
+Subsidiaries
+26,276.1
+23,042.6
+Associates
+38.8
+340.4
+12.9
+Enterprise under significant influence of key managerial personnel or their relatives
+Sale of Property, Plant and Equipment
+2,078.4
+Associates
+Daiichi Sankyo (Thailand) Ltd's shares were sold during the year.
+During the year Solrex Pharmaceuticals Company, a partnership firm has been converted into company which is known as Sun Pharma
+Medisales Private Limited.
+Holds voting power of 81.87% (beneficial ownership 72.81%) [March 31, 2016 79.32% (beneficial ownership 68.98%)] [April 01, 2015
+79.24% (beneficial ownership 68.87%)].
+164 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Ind AS-24 - " RELATED PARTY DISCLOSURES"
+Detail of related party transaction during the year ended March 31, 2017:
+Particulars
+ANNEXURE "A"
+March 31, 2017
+* in Million
+March 31, 2016
+Purchase of goods
+2,592.8
+2,100.1
+Subsidiaries
+2,564.6
+147.8
+17.3
+20.1
+Key managerial personnel (45,815)
+0.0
+Enterprise under significant influence of key managerial personnel or their relatives
+Rendering of Service
+14.9
+2.8
+860.3
+1,365.2
+Subsidiaries
+712.5
+1,132.5
+Joint Ventures
+11.6
+0.1
+Enterprise under significant influence of key managerial personnel or their relatives
+Reimbursement of Expenses Received
+136.2
+232.6
+204.1
+189.4
+Subsidiaries
+2.8
+10.0
+Associates
+1,136.6
+86.7
+Subsidiaries
+20.1
+86.3
+Enterprise under significant influence of key managerial personnel or their relatives
+Receiving of Service
+0.4
+1,386.2
+2,000.2
+Subsidiaries
+1,073.0
+1,609.9
+Enterprise under control of key managerial personnel or their relatives
+141.6
+390.3
+Enterprise under significant influence of key managerial personnel or their relatives
+Reimbursement of Expenses Paid
+171.6
+1,154.3
+1,104.0
+Subsidiaries
+1,101.2
+9.6
+Associates
+Provision for doubtful Loans and Interest accrued and due on Loans
+4,157.3
+3,337.5
+3,311.7
+Sun Pharma Laboratories Limited
+13.0
+65.8
+Sun Pharma Medisales Private Limited (Formerly known as Solrex Pharmaceuticals Company)
+Receiving of Service
+6.7
+15.8
+Sun Pharma Laboratories Limited
+269.2
+104.8
+Reimbursement of Expenses Paid
+Sun Pharmaceutical Industries, Inc.
+Sun Pharmaceutical Industries (Europe) B.V.
+539.6
+320.7
+343.9
+159.9
+Rendering of Service
+Sale of Property, Plant and Equipment
+Sun Pharma Laboratories Limited
+Sun Pharma Global (FZE)
+4.0
+167
+SUN
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Disclosure in respect of material transaction with related parties during the year.
+* in Million
+Particulars
+Purchase of goods
+Sun Pharma Medisales Private Limited (Formerly known as Solrex Pharmaceuticals Company)
+Sun Pharma Laboratories Limited
+Purchase of Property, Plant and Equipment
+Sun Pharma Laboratories Limited
+March 31, 2017 March 31, 2016
+1,174.5
+563.1
+1,207.2
+689.5
+Sun Pharma Advanced Research Company Ltd
+Sale of goods
+283.8
+0.5
+Be-Tabs Pharmaceuticals (Pty) Ltd.
+ANNUAL REPORT 2016-17
+Reimbursement of Expenses Received
+Sun Pharmaceutical Industries (Europe) B.V.
+130.6
+53.7
+41.5
+41.6
+6.0
+1.5
+7.8
+163.5
+0.4
+0.0
+4.8
+0.4
+473.9
+32,318.4
+37,994.6
+9,200.0
+35,480.0
+17,219.9
+27,480.0
+99.2
+Sun Pharma Global (FZE)
+424.0
+168 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Sun Pharma Advanced Research Company Ltd
+Finance (including investment and equity contributions)
+Green Eco Development Centre Limited
+Ranbaxy (Netherlands) B.V.
+Skisen Labs Private Limited
+Purchase of Investment in an Associate
+Zenotech Laboratories Limited (March 31, 2016 16,380)
+Loans given/Deposit
+Green Eco Development Centre Limited
+Loans received back
+Green Eco Development Centre Limited
+Neetnav Real Estate Private Limited
+Redemption of Preference Shares in Subsidiary
+Alkaloida Chemical Company Zrt.
+Sales of Investment in Sun Pharma Holding
+Sun Pharma Laboratories Limited
+Loan Taken
+Sun Pharma Laboratories Limited
+Loan Repaid
+Sun Pharma Laboratories Limited
+431.2
+62.5
+62.5
+62.5
+7.4
+2,873.1
+2,873.1
+166
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Balance Outstanding as at the end of the year
+Particulars
+Receivables
+Subsidiaries
+March 31, 2017 March 31, 2016
+11,140.2
+10,673.7
+9,103.9
+*in Million
+April 01, 2015
+6,359.4
+8,966.6
+6,335.1
+Joint Ventures
+8.3
+0.9
+13.0
+50.8
+Provision in respect of losses of a subsidiary
+Subsidiaries
+Remuneration
+63.4
+389.5
+63.4
+389.5
+165.4
+122.9
+165.4
+122.9
+90.6
+63.8
+Key Managerial Personnel [Refer Note 59 (11)]
+Relatives of Key Managerial Personnel
+Director's Sitting Fees
+Withdrawal of letters of comfort given on behalf of subsidiaries
+Subsidiaries
+77.3
+13.3
+1.3
+Associates
+1.8
+166.4
+382.8
+Loan Taken
+Subsidiaries
+8,020.0
+8,020.0
+Loan Given
+4.4
+331.6
+Subsidiaries
+4.4
+4.8
+Associates
+326.8
+Subsidiaries
+Deposit Given
+* Net of Provision for doubtful loans and interest accrued and due thereon of 726.9 Million [ March 31, 2016: 663.5 Million; April 01, 2015 274.0 Million]
+(Refer Note 54)
+Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term employee benefits
+recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial
+valuation, the same is not included above and there is no Share-based payments to key managerial personnel of company.
+62.5
+62.5
+62.5
+25.0
+63.0
+Enterprise under control of key managerial personnel or their relatives
+Enterprise under significant influence of key managerial personnel or their
+relatives
+1.2
+Enterprise under significant influence of key managerial personnel or their
+relatives
+466.5
+134.6
+23.0
+Payable
+15,000.5
+Subsidiaries
+14,412.2
+16,614.0
+16,581.2
+Thea Acquisition Corporation has been merged with Insite Vision Incorporated during the previous year.
+Acquired and subsequently amalgamated in Taro Pharmaceuticals Inc. in the previous year.
+14,613.1
+14,419.6
+137.7
+6.4
+Key managerial personnel
+4.2
+5.4
+19.5
+Relatives of key managerial personnel
+0.6
+2.4
+Associates
+3 Skyline LLC
+Incorporated/Acquired during the previous year.
+17
+Israel
+United Kingdom
+Hungary
+72.81% 68.98% 68.87%
+72.81% 68.98% 68.87%
+72.81% 68.98% 68.87%
+72.81% 68.98% 68.87%
+72.81% 68.98% 68.87%
+United States of America
+United States of America
+United States of America
+Canada
+India
+72.81%
+72.81% 68.98% 68.87%
+72.81% 68.98% 68.87%
+72.81% 68.98% 68.87%
+68.98% 68.87%
+72.81%
+Sweden
+100.00%
+Dusa Pharmaceuticals, Inc.
+Dusa Pharmaceuticals New York, Inc. (Refer Footnote 3)
+Sirius Laboratories Inc (Refer Footnote 3)
+URL Pharma, Inc (Refer Footnote 7)
+AR Scientific, Inc (Refer Footnote 8)
+United States of America
+United States of America
+United States of America
+United States of America
+United States of America
+68.98% 68.87%
+100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00%
+Taro Pharmaceutical India Private Limited (Refer Footnote 6)
+Alkaloida Sweden AB
+100.00% 100.00%
+Taro Pharmaceuticals Canada, Ltd.
+One Commerce Drive LLC
+India
+Gufic Pharma Limited
+India
+India
+Ranbaxy Drugs Limited
+100.00% 100.00% 100.00%
+France
+Ranbaxy Pharmacie Generiques
+100.00% 100.00%
+99.99% 99.99% 99.99%
+100.00% 100.00% 100.00%
+India
+Softdeal Trading Company Private Limited
+Mauritius
+Sun Pharma Holdings
+100.00%
+India
+Skisen Labs Private Limited
+100.00% 100.00%
+100.00%
+India
+Taro Pharmaceutical Laboratories Inc
+Ranbaxy (Malaysia) Sdn. Bhd.
+Mutual Pharmaceutical Company Inc.
+100.00%
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Country of
+Incorporation
+Proportion of ownership interest for
+the year ended
+March 31, March 31,
+April 01,
+2017
+Sun Pharma East Africa Limited (Refer Footnote 10)
+Kenya
+100.00%
+2016
+100.00%
+2015
+100.00%
+Pharmalucence, Inc. (Refer Footnote 10)
+United States of America
+100.00%
+100.00% 100.00%
+PI Real Estate Ventures, LLC (Refer Footnote 10)
+United States of America
+100.00%
+100.00% 100.00%
+162
+United States of America
+PHARMA
+ANNUAL REPORT 2016-17 161
+100.00% 100.00%
+United Research Laboratories, Limited (Refer Footnote 8)
+Dungan Mutual Associates, LLC
+URL PharmPro, LLC
+2 Independence Way LLC
+Thallion Pharmaceutical Inc., (Refer Footnote 9)
+Universal Enterprises Private Limited
+United States of America
+United States of America
+United States of America
+United States of America
+United States of America
+India
+100.00% 100.00%
+100.00%
+Sun Pharma Switzerland Limited
+Switzerland
+Silverstreet Developers LLP (Refer Footnote 5)
+India
+100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00%
+100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00%
+SUN
+Sun Pharma ANZ Pty Ltd (formerly known as Ranbaxy Australia
+Malaysia
+Ranbaxy Nigeria Limited
+Caraco Pharmaceuticals Private Limited
+United Arab Emirates
+Philippines
+Korea
+Canada
+100.00% 100.00%
+100.00%
+South Africa
+100.00% 100.00%
+100.00%
+United Arab Emirates
+2015
+100.00%
+April 01,
+Proportion of ownership interest for
+the year ended
+March 31, March 31,
+2016
+100.00%
+100.00%
+France
+Sun Pharma Japan Ltd.
+Sun Global Development FZE
+Sun Pharmaceuticals Korea Ltd.
+Sun Pharma Philippines, Inc.
+India
+Sun Global Canada Pty. Ltd.
+Japan
+Morley & Company, Inc.
+Taro Pharmaceuticals (UK) Limited
+Taro International Ltd.
+Ireland
+Netherlands
+Taro Pharmaceuticals Ireland Limited
+Taro Pharmaceuticals Europe B.V.
+West Indies
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+72.81% 68.98% 68.87%
+72.81% 68.98% 68.87%
+72.81% 68.98% 68.87%
+72.81% 68.98% 68.87%
+100.00% 100.00% 100.00%
+United States of America
+Cayman Islands, British
+Canada
+Israel
+United States of America
+United Arab Emirates
+United Arab Emirates
+Taro Pharmaceuticals North America, Inc.
+Taro Pharmaceuticals U.S.A., Inc.
+Taro Pharmaceuticals Inc.
+Taro Pharmaceutical Industries Ltd. (TARO) (Refer Footnote 17)
+Sun Laboratories FZE
+Sun Pharma Healthcare FZE
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+71.22% 71.22% 71.22%
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+Sun Pharmaceuticals France
+Netherlands
+Israel
+Aditya Acquisition Company Ltd.
+Sun Pharmaceutical Industries (Australia) Pty Limited
+Sun Pharmaceuticals UK Limited
+Alkaloida Chemical Company Zrt.
+Sun Pharmaceutical Industries (Europe) B.V.
+The Taro Development Corporation
+Chattem Chemicals Inc.
+Caraco Pharma Inc. (Refer Footnote 2)
+Step down Subsidiaries
+100.00%
+India
+Foundation for Disease Elimination and Control of India (Refer
+Footnote 1)
+85.31%
+85.31% 85.31%
+100.00% 100.00% 100.00%
+Netherlands
+Nigeria
+Ranbaxy (Netherlands) B.V.
+United States of America
+United States of America
+United States of America
+Hungary
+United Kingdom
+Australia
+Sun Pharma Global FZE
+100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+99.99% 99.99% 99.99%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+2017
+Country of
+Incorporation
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+160
+100.00% 100.00% 100.00%
+Germany
+Sun Pharmaceuticals Germany GmbH
+100.00% 100.00% 100.00%
+Spain
+Sun Pharmaceuticals Spain, S.L.U. (Refer Footnote 3)
+100.00% 100.00% 100.00%
+Italy
+Sun Pharmaceuticals Italia S.R.L.
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+Australia
+100.00%
+100.00% 100.00%
+26.90%
+26.90% 26.90%
+d
+Key Managerial Personnel
+Dilip S. Shanghvi
+Managing Director
+Sudhir V. Valia
+Executive Director
+Sailesh T. Desai
+Israel Makov
+Kalyansundaram Subramanian (w.e.f. February 14, 2017)
+S. Mohanchand Dadha
+Hasmukh S. Shah
+Keki M. Mistry
+Executive Director
+Chairman and Non-
+Executive Director
+Executive Director
+Non-Executive Director
+Thailand
+Non-Executive Director
+Daiichi Sankyo (Thailand) Ltd. (Refer Footnote 15)
+46.84%
+United States of America
+100.00%
+Sun Pharma Medisales Pvt Ltd. (formerly known as Solrex
+Pharmaceuticals Company) (Refer Footnote 16)
+Sun Pharmaceutical Medicare Limited (Refer Footnote 1)
+Ocular Technologies SARL (Refer Footnote 1)
+JSC Biosintez (Refer Footnote 1)
+Sun Pharmaceuticals Holdings USA, INC (Refer Footnote 1)
+Names of related parties where there are transactions and
+description of relationships
+India
+India
+Switzerland
+Russia
+b
+Joint Ventures
+S&I Ophthalmic LLC
+United States of America
+50.00%
+50.00%
+50.00%
+C
+Associates
+Zenotech Laboratories Limited
+India
+46.84% 46.84%
+85.10%
+Non-Executive Director
+Rekha Sethi
+Investment sold during the previous year.
+Taro Pharmaceutical India Private Limited is under liquidation.
+Merged into Mutual Pharmaceutical Company, Inc. during the previous year.
+ANNUAL REPORT 2016-17
+163
+SUN
+PHARMA
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+8 a
+Merged into URL Pharma Inc. during the previous year.
+9 Thallion Pharmaceutical Inc., was acquired and merged with Taro Pharmaceuticals Inc. during the year.
+10
+11
+12
+13
+14
+15
+16
+Merged with Sun Pharma Global FZE.
+Ashwin S. Dani
+Dissolved/Liquidated during the year.
+Incorporated/Acquired during the year.
+e
+Relatives of Key Managerial Personnel
+Aalok Shanghvi
+Non-Executive Director
+Non-Executive Director
+Vidhi Shanghvi
+Enterprise under control of Key Managerial Personnel or their
+f
+relatives
+g
+Makov Associates Ltd
+Enterprise under significant Influence of Key Managerial
+Personnel or their relatives
+Sun Pharma Advanced Research Company Ltd
+Sun Petrochemicals Pvt Ltd
+PV Power Technologies Pvt. Ltd.
+Footnote
+1
+234567
+Merged with Sun Pharmaceutical Industries, Inc.
+100.00%
+100.00%
+2017
+100.00%
+Ranbaxy Ireland Limited
+Ireland
+Ranbaxy Italia S.P.A.
+Italy
+Sun Pharmaceutical Industries S.A.C. (formerly known as Ranbaxy
+Peru
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+- PRP (Peru) S.A.C.)
+Ranbaxy (Poland) Sp. Z o.o.
+Poland
+100.00%
+Ranbaxy Portugal - Com E Desenvolv DeProd Farmaceuticos
+Unipessoal Lda (Refer Footnote 11)
+Portugal
+100.00% 100.00%
+100.00% 100.00%
+S.C Terapia S.A.
+Romania
+AO Ranbaxy (formerly known as ZAO Ranbaxy)
+Russia
+Ranbaxy South Africa Proprietary Limited
+Germany
+South Africa
+Ranbaxy GmbH
+Basics GmbH
+Pty Ltd)
+Ranbaxy Belgium N.V. (Refer Footnote 11)
+Belgium
+100.00% 100.00%
+Ranbaxy Farmaceutica Ltda.
+Brazil
+100.00% 100.00% 100.00%
+Ranbaxy Pharmaceuticals Canada Inc.
+Canada
+100.00% 100.00% 100.00%
+Ranbaxy Egypt LLC
+Egypt
+100.00% 100.00% 100.00%
+Rexcel Egypt LLC
+Egypt
+100.00% 100.00% 100.00%
+Office Pharmaceutique Industriel Et Hospitalier
+France
+100.00% 100.00% 100.00%
+Germany
+Ranbaxy Pharmaceutical Proprietary Limited
+South Africa
+Be-Tabs Investments Proprietary Limited
+Insite Vision Incorporated (Refer Footnote 12)
+Insite Vision Ltd. (Refer Footnote 12)
+Thea Acquisition Corporation (Refer Footnote 12 and 13)
+Zalicus Pharmaceuticals Limited (Refer Footnote 12 and 14)
+United States of America
+United States of America
+United Kingdom
+United States of America
+Canada
+100.00% 100.00%
+100.00% 100.00%
+100.00% 100.00%
+100.00%
+100.00%
+United Kingdom
+United States of America
+United States of America
+Thailand
+96.70% 96.70% 96.70%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+70.00% 70.00% 70.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+67.50% 67.50% 67.50%
+100.00% 100.00% 100.00%
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Country of
+Incorporation
+Proportion of ownership interest for
+the year ended
+March 31, March 31,
+2016
+April 01,
+2015
+Perryton Wind Power LLC (Refer Footnote 3 and 12)
+100.00% 100.00%
+100.00%
+Ukraine
+South Africa
+Sonke Pharmaceuticals Proprietary Limited
+Laboratorios Ranbaxy, S.L.U.
+Ranbaxy (U.K.) Limited
+Ranbaxy Holdings (U.K.) Limited
+Ranbaxy Europe Limited
+South Africa
+Spain
+United Kingdom
+Incorporated / Acquired during the year ended March 31, 2015.
+United Kingdom
+Ranbaxy Pharmaceuticals, Inc.
+Ranbaxy (Thailand) Company Limited
+Ohm Laboratories, Inc.
+Ranbaxy Laboratories, Inc.
+Ranbaxy Signature LLC
+United States of America
+United States of America
+United States of America
+Sun Pharmaceuticals Morocco LLC (formerly known as Ranbaxy
+Morocco LLC)
+Morocco
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+Ranbaxy Inc.
+Dissolved/Liquidated during the previous year.
+Vidyut Investments Limited
+75.00% 75.00% 75.00%
+100.00% 100.00% 100.00%
+99.33% 99.33% 99.33%
+100.00% 100.00% 99.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+100.00% 100.00% 100.00%
+Country of
+Incorporation
+ANNEXURE "A"
+Subsidiaries
+a
+of relationships
+Names of related parties where control exists and description
+Ind AS-24 - " RELATED PARTY DISCLOSURES"
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+PHARMA
+SUN
+159
+ANNUAL REPORT 2016-17
+As at March 31, 2017, the Company has received an amount
+of 0.0 Million (7,177) towards share application money
+for 1,148 equity shares of the Company. The Company
+will allot these equity shares during the next financial year.
+The Company has sufficient authorised capital to cover the
+allotment of these shares. Pending allotment of shares, the
+amounts are maintained in a designated bank account and are
+not available for use by the Company.
+Excess remuneration, if any, after final approval in respect of
+the re-representation/applications for revision is received,
+shall be refunded by the respective Managing Director and the
+Whole-time Director(s).
+13
+12
+Remuneration to the Managing Director and the Whole-time
+Director(s) of the Company for the years ended March 31,
+2015, March 31, 2016 and March 31, 2017 are higher by
+* 49.6 Million, * 29.6 Million and 44.7 Million respectively
+than the amounts approved by the Central Government of
+India (Ministry of Corporate Affairs) on applications made
+by the Company to approve the maximum remuneration
+as approved by the members of the Company for the three
+years ended March 31, 2017, in excess of the limits specified
+under Schedule V to the Companies Act, 2013, in case of
+inadequacy of profits. The Company has re-represented to
+the office of the Ministry of Corporate Affairs (MCA) for
+approval of remuneration within the overall limits approved
+by the members of the Company for the years ended March
+31, 2015 and March 31, 2016, and that for the year ended
+March 31, 2017, applications for revision in the remuneration,
+as approved by the members of the Company, has been made
+to the MCA. The responses in respect of the foregoing re-
+representation/applications for revision are awaited from
+the MCA. On receipt of the requisite approvals, the balance
+amount of remuneration for the aforesaid years, if any, as per
+their entitlement, shall be paid to the Managing Director and
+the Whole-time Director(s), as applicable, and the same shall
+be given effect to in the year in which the approval is received.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+11
+Realstone Multitrade Private Limited
+Proportion of ownership interest for
+the year ended
+March 31, March 31,
+2017
+2016
+April 01,
+2015
+The Company completed buy-back of 7,500,000 equity shares
+of 1 each (representing 0.31% of total pre buy-back paid up
+equity capital) on October 18, 2016, from the shareholders
+on a proportionate basis by way of a tender offer at a price of
+* 900 per equity share for an aggregate amount of * 67,500
+Lakhs in accordance with the provisions of the Companies Act,
+2013 and the SEBI (Buy Back of Securities) Regulations,
+1998. This buy-back of equity shares was approved by the
+Board of Directors of the Company at its meeting held on
+June 23, 2016.
+Green Eco Development Centre Limited
+India
+Direct Subsidiaries
+Neetnav Real Estate Private Limited
+India
+Faststone Mercantile Company Private Limited
+India
+Sun Pharma Laboratories Limited
+Sun Pharma De Venezuela, C.A.
+Russia
+OOO "Sun Pharmaceutical Industries" Limited
+Peru
+Sun Pharmaceutical Peru S.A.C.
+Venezuela
+India
+Bangladesh
+SPIL De Mexico S.A. DE C.V.
+Mexico
+100.00% 100.00%
+100.00% 100.00%
+100.00%
+72.50% 72.50% 72.50%
+100.00%
+100.00%
+Brazil
+United States of America
+100.00% 100.00%
+Sun Pharmaceutical (Bangladesh) Limited
+Sun Pharma De Mexico S.A. DE C.V.
+Sun Farmaceutica Do Brasil Ltda.
+Mexico
+Sun Pharmaceutical Industries, Inc.
+(IX) Profit for the year before share of profit/(loss) of associates and joint ventures (VII-VIII)
+9,137.7
+33.2
+Total tax expense (VIII)
+12,115.7
+78,363.0
+(XI) Share of profit/(loss) of joint ventures
+(X) Share of profit/(loss) of associates
+299.6
+(18.7)
+(200.3)
+(2,816.4)
+56,568.6
+8,069.3
+(VII) Profit before tax (V+VI)
+11,954.1
+4,046.4
+Current tax
+(VIII) Tax expense
+65,706.3
+90,478.7
+(6,851.7)
+42
+62
+72,558.0
+90,478.7
+(VI) Exceptional items
+(V) Profit before exceptional items and tax (III-IV)
+(XII) Profit for the year before non-controlling interests (IX+X+XI)
+Deferred tax charge/(credit)
+78,462.3
+Report on Internal Financial Controls Over Financial Reporting Under Clause (I) of Sub-section 3 of section 143
+of the Companies Act, 2013 ( "the Act")
+(XIII) Non-controlling interests
+SUN
+PHARMA
+ANNEXURE "A"
+TO THE INDEPENDENT AUDITOR'S REPORT
+(Referred to in paragraph (f) under 'Report on Other Legal and Regulatory Requirements' section of our report of even date
+to the Members of Sun Pharmaceutical Industries Limited)
+218,894.8
+In conjunction with our audit of the consolidated Ind AS financial statements of the Company as of and for the year ended 31st March, 2017, we
+have audited the internal financial controls over financial reporting of SUN PHARMACEUTICAL INDUSTRIES LIMITED (hereinafter referred to
+as "the Parent") and its subsidiary companies and its associate company, which are companies incorporated in India, as of that date.
+Management's Responsibility for Internal Financial Controls
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+178
+(3,149.9)
+(4,451.7)
+(2,802.4)
+(3,741.4)
+56,583.1
+(b) Equity instruments through other comprehensive income
+Total (A)
+(710.3)
+(42.2)
+(56.6)
+Income tax effect relating to remeasurement of the defined benefit plans
+(389.7)
+(766.9)
+(a) Remeasurements of the defined benefit plans
+(A) Items that will not be reclassified to profit or loss
+(XV) Other comprehensive income
+45,457.1
+69,643.7
+(XIV) Profit for the year attributable to owners of the Company
+11,126.0
+8,818.6
+(347.5)
+231,537.2
+Cost of materials consumed
+92,260.2
+315,784.4
+31
+March 31, 2017
+Notes
+Year ended
+(IV) Expenses
+(III) Total income (I + II)
+(II) Other income
+(I) Revenue from operations
+FOR THE YEAR ENDED MARCH 31, 2017
+OF PROFIT AND LOSS
+CONSOLIDATED STATEMENT
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 177
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 26, 2017
+SUNIL R. AJMERA
+Company Secretary
+SUDHIR V. VALIA
+Wholetime Director
+DILIP S. SHANGHVI
+Managing Director
+UDAY V. BALDOTA
+Chief Financial Officer
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Mumbai, May 26, 2017
+Partner
+RAJESH K. HIRANANDANI
+Chartered Accountants
+For DELOITTE HASKINS & SELLS LLP
+In terms of our report attached
+See accompanying notes 1 to 80 to the consolidated financial statements
+501,600.6
+32
+6,231.5
+322,015.9
+* in Million
+84,561.3
+37
+Other expenses
+10,375.3
+12,647.5
+3
+Depreciation and amortisation expense
+5,232.4
+3,998.0
+36
+Finance costs
+47,723.1
+49,023.0
+35
+Total expenses (IV)
+Employee benefits expense
+(2,716.3)
+34
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+25,425.2
+32,777.6
+Purchases of stock-in-trade
+41,816.3
+51,246.1
+33
+ANNUAL REPORT 2016-17 173
+6,582.5
+291,452.8
+284,870.3
+March 31, 2016
+Year ended
+(3,937.7)
+(Membership No. 36920)
+(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated Ind AS financial statements
+have been kept so far as it appears from our examination of those books and the reports of the other auditors.
+RAJESH K. HIRANANDANI
+Provision in respect of losses of a subsidiary
+Ranbaxy Pharmacie Generiques SAS
+Remuneration
+Key Managerial Personnel
+Dilip S. Shanghvi @
+Sailesh T. Desai
+Sudhir V. Valia #
+Relatives of Key Managerial Personnel
+Aalok D. Shanghvi
+Director's Sitting Fees
+Hasmukh S. Shah
+S. Mohanchand Dadha
+Withdrawal of letters of comfort given on behalf of subsidiaries
+Ranbaxy Nigeria Limited
+389.5
+Ranbaxy Malaysia Sdn. Bhd.
+165.4
+122.9
+31.8
+19.3
+31.6
+12.1
+13.9
+19.4
+12.1
+12.1
+1.7
+1.9
+1.7
+1.6
+@Net of Refund of Nil (March 31, 2016 1.1 Million) in respect of excess remuneration paid for financial year 2013-14.
+# Net of Refund of Nil (March 31, 2016 1.0 Million) in respect of excess remuneration paid for financial year 2013-14.
+576.3
+556.2
+63.4
+Provision for doubtful Loans and Interest accrued and due on Loans
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Particulars
+Dividend Income on Preference Shares
+Sun Pharma Laboratories Limited
+Alkaloida Chemical Company Zrt.
+Dividend Income on Equity Shares
+Sun Pharma Laboratories Limited
+Interest Income
+Zenotech Laboratories Limited
+Interest Expense
+Sun Pharma Laboratories Limited
+* in Million
+March 31, 2017 March 31, 2016
+40.0
+Zenotech Laboratories Limited
+2,000.0
+70.4
+69.9
+116.4
+1,187.9
+Rent Income
+Sun Pharma Laboratories Limited
+19.3
+23.8
+Rent expense
+Sun Pharma Medisales Private Limited (Formerly known as Solrex Pharmaceuticals Company)
+Neetnav Real Estate Private Limited
+1.5
+8.9
+0.7
+0.7
+394.3
+Partner
+ANNUAL REPORT 2016-17 169
+PHARMA
+Our opinion on the consolidated Ind AS financial statements above, and our report on Other Legal and Regulatory Requirements below, is not
+modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial
+statements / financial information certified by the Management of the Parent.
+Report on Other Legal and Regulatory Requirements
+As required by Section 143(3) of the Act, based on our audit and on the consideration of the reports of the other auditors on separate financial
+statements and the other financial information of subsidiaries, associates and joint venture companies, referred in the Other Matters paragraph
+above, we report, to the extent applicable, that:
+(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
+purposes of our audit of the aforesaid consolidated Ind AS financial statements.
+555,302.7
+(c)
+The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated
+Cash Flow Statement and the Consolidated Statement of Changes in Equity dealt with by this report are in agreement with the relevant
+books of account maintained for the purpose of preparation of the consolidated Ind AS financial statements.
+(d) In our opinion, the aforesaid consolidated Ind AS financial statements comply with the Indian Accounting Standards prescribed under
+Section 133 of the Act.
+(e) On the basis of the written representations received from the directors of the Parent as on 31st March, 2017 taken on record by the Board
+of Directors of the Parent and the reports of the statutory auditors of its subsidiary companies and an associate company, incorporated in
+India, none of the directors of the Group companies and its associate company incorporated in India is disqualified as on 31st March, 2017
+from being appointed as a director in terms of Section 164 (2) of the Act.
+(f) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls,
+refer to our separate Report in "Annexure A", which is based on the auditors' reports of the Parent, subsidiary companies and an associate
+company, incorporated in India. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the internal
+financial controls over financial reporting of the Parent, subsidiary companies and an associate company, incorporated in India.
+(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditor's)
+Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
+172
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+(d) The transition date opening balance sheet of the Parent as at 1st April, 2015 include the financial information of erstwhile Ranbaxy
+Laboratories Limited, consequent to its amalgamation into the Parent which was effected on 24th March, 2015, with the appointed
+date of 1st April, 2014 [refer Note 66 to the consolidated Ind AS financial statements]. The said financial information included in these
+consolidated Ind AS financial statements are based on financial information previously prepared in accordance with the Companies
+(Accounting Standards) Rules, 2006, audited by the other auditors, and have been restated to comply with Ind AS. Adjustments made to
+the financial information previously prepared in accordance with the Companies (Accounting Standards) Rules, 2006 to comply with Ind AS
+have been audited by us.
+STATUTORY REPORTS
+FINANCIAL STATEMENTS 80-278
+INDEPENDENT AUDITOR'S REPORT
+i.
+ii.
+iii.
+iv.
+The consolidated Ind AS financial statements disclose the impact of pending litigations on the consolidated financial position of the
+Group, its associates and joint ventures - Refer Note 40A to the consolidated Ind AS financial statements.
+Provision has been made in the consolidated Ind AS financial statements, as required under the applicable law or accounting
+standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Notes 23 and 29 to the
+consolidated Ind AS financial statements in respect of such items as it relates to the Group. The associates and jointly ventures did not
+have any long-term contracts including derivative contracts.
+There has been no delay in transferring amounts required to be transferred, to the Investor Education and Protection Fund by the
+Parent and its subsidiary companies and an associate company, incorporated in India, except a sum of 13.4 Million, which is held in
+abeyance by the Parent due to pending legal cases.
+The Parent has provided requisite disclosures in Note 71 to the consolidated Ind AS financial statements as regards the holding and
+dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated 8th November, 2016 of the Ministry of Finance, during
+the period from 8th November, 2016 to 30th December, 2016 in respect of the Parent, subsidiaries and an associate, incorporated in
+India. Based on the audit procedures performed, the representations provided to us by the Management of the Parent and based on the
+consideration of reports of the other auditors, referred to in the Other Matters paragraph above, we report that the disclosures are in
+accordance with the relevant books of accounts maintained by the Parent, subsidiaries and an associate, incorporated in India, for the
+purpose of preparation of the consolidated Ind AS financial statements.
+Place: Mumbai
+Date: 26th May, 2017
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+(Firm's Registration No. 117366W/W-100018)
+08-79
+SUN
+(c) The comparative financial information for the year ended 31st March, 2016 and the transition date opening balance sheet as at 1st April,
+2015 in respect of 71 subsidiaries, 4 associates and 2 joint ventures included in this consolidated Ind AS financial statements prepared in
+accordance with the Ind AS have been audited by other auditors and have been relied upon by us.
+PHARMA
+INDEPENDENT AUDITOR'S REPORT
+TO THE MEMBERS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Report on the Consolidated Ind AS Financial Statements
+We have audited the accompanying consolidated Ind AS financial statements of Sun Pharmaceutical Industries Limited (hereinafter referred
+to as "the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), its associates and its joint
+ventures, comprising the Consolidated Balance Sheet as at 31st March, 2017, the Consolidated Statement of Profit and Loss including other
+comprehensive income, the Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity, for the year then ended,
+and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the consolidated Ind AS
+financial statements").
+Management's Responsibility for the Consolidated Ind AS Financial Statements
+The Parent's Board of Directors is responsible for the preparation of these consolidated Ind AS financial statements in terms of the
+requirements of the Companies Act, 2013 (hereinafter referred to as "the Act") that give a true and fair view of the consolidated financial
+position, consolidated financial performance including other comprehensive income, consolidated cash flows and statement of changes
+in equity of the Group including its associates and its joint ventures in accordance with the accounting principles generally accepted in
+India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act. The respective Board of Directors of the
+companies included in the Group and of its associates and of its joint ventures are responsible for maintenance of adequate accounting
+records in accordance with the provisions of the Act for safeguarding the assets of the Group and its associates and its joint ventures
+and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making
+judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial
+controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation
+and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or
+error, which have been used for the purpose of preparation of the consolidated Ind AS financial statements by the Directors of the Parent, as
+aforesaid.
+Auditor's Responsibility
+Our responsibility is to express an opinion on these consolidated Ind AS financial statements based on our audit. In conducting our audit, we
+have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the
+audit report under the provisions of the Act and the Rules made thereunder.
+We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that
+we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated Ind AS
+financial statements are free from material misstatement.
+An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the consolidated Ind AS financial
+statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of
+the consolidated Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal
+financial control relevant to the Parent's preparation of the consolidated Ind AS financial statements that give a true and fair view in order to
+design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting
+policies used and the reasonableness of the accounting estimates made by the Parent's Board of Directors, as well as evaluating the overall
+presentation of the consolidated Ind AS financial statements.
+We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred
+to in sub-paragraph (a) of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the
+consolidated Ind AS financial statements.
+170 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+INDEPENDENT AUDITOR'S REPORT
+08-79
+INDEPENDENT AUDITOR'S REPORT
+Opinion
+In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports
+of the other auditors on separate financial statements/ financial information of the subsidiaries, associates and joint ventures referred to
+below in the Other Matters paragraph, the aforesaid consolidated Ind AS financial statements give the information required by the Act in the
+manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated
+state of affairs of the Group, its associates and its joint ventures as at 31st March, 2017, and their consolidated profit, consolidated total
+comprehensive income, consolidated cash flows and consolidated statement of changes in equity for the year ended on that date.
+Emphasis of Matter
+We draw attention to Note 64 to the consolidated Ind AS financial statements. As referred to in the said Note: Remuneration to the Managing
+Director and the Whole-time Director(s) of the Parent for the years ended 31st March, 2015, 31st March, 2016 and 31st March, 2017 are
+higher by * 49.6 Million, * 29.6 Million and 44.7 Million respectively than the amounts approved by the Central Government of India (Ministry
+of Corporate Affairs) on applications made by the Parent to approve the maximum remuneration as approved by the members of the Parent
+for the three years ended 31st March, 2017, in excess of the limits specified under Schedule V to the Act, in case of inadequacy of profits. The
+Management of the Parent have re-represented to the office of the Ministry of Corporate Affairs for approval of remuneration within the overall
+limits approved by the members of the Parent for the years ended 31st March, 2015 and 31st March, 2016, and for the year ended 31st March,
+2017, applications for revision in the remuneration, as approved by the members of the Parent, has been made to the Ministry of Corporate
+Affairs. The responses in respect of the foregoing re-representation / applications for revision are awaited from the Ministry of Corporate
+Affairs.
+Our opinion is not modified in respect of this matter.
+Other Matters
+(a) We did not audit the financial statements / financial information of 79 subsidiaries, whose financial statements / financial information
+reflect total assets of 561,913.2 Million as at 31st March, 2017, total revenues of * 242,491.8 Million and net cash inflows amounting to
+* 6,209.1 Million for the year ended on that date, as considered in the consolidated Ind AS financial statements. The consolidated Ind AS
+financial statements also include the Group's share of net profit of ₹99.3 Million for the year ended 31st March, 2017, as considered in the
+consolidated Ind AS financial statements, in respect of 5 associates and 2 joint ventures, whose financial statements / financial information
+have not been audited by us. The above figures are before giving effect to consolidation adjustments.
+These financial statements / financial information have been audited by other auditors whose reports have been furnished to us and our
+opinion on the consolidated Ind AS financial statements, in so far as it relates to the amounts and disclosures included in respect of these
+subsidiaries, associates and joint ventures, and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to the
+aforesaid subsidiaries, associates and joint ventures is based solely on the reports of the other auditors.
+(b) We did not audit the financial statements / financial information of 31 subsidiaries, whose financial statements / financial information
+reflect total assets of 248,997.4 Million as at 31st March, 2017, total revenues of 12,831.5 Million and net cash outflows amounting to
+* 231.1 Million for the year ended on that date, as considered in the consolidated Ind AS financial statements. The above figures are before
+giving effect to consolidation adjustments. The consolidated Ind AS financial statements also include the Group's share of profit after tax of
+* Nil for the year ended 31st March, 2017, as considered in the consolidated Ind AS financial statements, in respect of
+3 associates and 2 joint ventures, whose financial statements / financial information have not been audited.
+These financial statements / financial information are unaudited and have been furnished to us by the Management of the Parent and
+our opinion on the consolidated Ind AS financial statements, in so far as it relates to the amounts and disclosures included in respect of
+these subsidiaries, associates and joint ventures, is based solely on such unaudited financial statements / financial information. In our
+opinion and according to the information and explanations given to us by the Management of the Parent, these financial statements /
+financial information are not material to the Group.
+ANNUAL REPORT 2016-17 171
+SUN
+FINANCIAL STATEMENTS 80-278
+614,102.4
+27
+192,674.2
+27,172.1
+31,489.9
+24,928.2
+51
+(i) Deferred tax assets (Net)
+1,583.4
+9,809.9
+6,452.2
+8
+(iii) Other financial assets
+1,830.1
+1,073.2
+698.1
+7
+(ii) Loans
+10,772.1
+7,496.9
+4,575.1
+6
+(i) Investments
+(h) Financial assets
+418.0
+655.0
+429.5
+5
+(g) Investments in joint ventures
+2,175.7
+3,008.8
+4,605.4
+(j) Income tax assets (Net)
+9
+31,250.1
+15,726.2
+72,645.9
+80,751.4
+86,628.0
+14
+(iii) Cash and cash equivalents
+50,927.5
+67,756.6
+72,026.1
+13
+(ii) Trade receivables
+21,662.2
+7,138.1
+2,308.8
+12
+4
+(i) Investments
+56,668.9
+64,225.4
+68,328.1
+11
+(a) Inventories
+(2) Current Assets
+5,934.2
+212,818.4
+6,152.8
+255,889.7
+284,565.9
+Total non-current assets
+6,861.8
+10
+(k) Other non-current assets
+11,238.8
+(b) Financial assets
+(f) Investments in associates
+5,068.4
+9,719.9
+SUN
+ANNUAL REPORT 2016-17 175
+(Membership No. 36920)
+Partner
+RAJESH K. HIRANANDANI
+(Firm's Registration No. 117366W/W-100018)
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+Date: 26th May, 2017
+Place: Mumbai
+Our opinion is not modified in respect of this matter.
+Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over
+financial reporting insofar as it relates to 14 subsidiary companies (excluding a subsidiary company under liquidation) and an associate
+company, which are companies incorporated in India, is based solely on the reports of the auditors of such companies incorporated in India.
+Other Matter
+In our opinion to the best of our information and according to the explanations given to us and based on the consideration of the reports of
+the other auditors referred to in the Other Matter paragraph below, the Parent, its subsidiary companies and its associate company, which
+are companies incorporated in India, have, in all material respects, an adequate internal financial controls system over financial reporting and
+such internal financial controls over financial reporting were operating effectively as at 31st March, 2017, based on the internal control over
+financial reporting criteria established by the respective companies considering the essential components of internal control stated in the
+Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
+Opinion
+PHARMA
+Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
+management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control
+over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
+procedures may deteriorate.
+Report on Internal Financial Controls Over Financial Reporting Under Clause (I) of Sub-section 3 of section 143
+of the Companies Act, 2013 ( "the Act")
+(Referred to in paragraph (f) under 'Report on Other Legal and Regulatory Requirements' section of our report of even date
+to the Members of Sun Pharmaceutical Industries Limited)
+TO THE INDEPENDENT AUDITOR'S REPORT
+ANNEXURE "A"
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+174 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
+of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
+principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the
+maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
+(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
+with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
+authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection
+of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
+Meaning of Internal Financial Controls Over Financial Reporting
+We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the subsidiary companies and
+the associate company, which are companies incorporated in India, in terms of their reports referred to in the Other Matter paragraph below,
+is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting of the
+Parent, its subsidiary companies and its associate company, which are companies incorporated in India.
+Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
+financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
+an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
+evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
+auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
+Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Parent, its subsidiary companies
+and its associate company, which are companies incorporated in India, based on our audit. We conducted our audit in accordance with
+the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
+India and the Standards on Auditing, prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial
+controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
+reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such
+controls operated effectively in all material respects.
+Inherent Limitations of Internal Financial Controls Over Financial Reporting
+(iv) Bank balances other than (iii) above
+CONSOLIDATED BALANCE SHEET
+As at
+12,366.2
+(e) Intangible assets under development
+6,461.3
+26,543.7
+36,436.6
+3b
+(d) Other intangible assets
+54,845.9
+56,347.4
+55,362.2
+48
+15,317.7
+12,034.6
+15,647.6
+AS AT MARCH 31, 2017
+70,000.7
+84,952.9
+За
+(c) Goodwill (Net)
+(b) Capital work-in-progress
+(a) Property, plant and equipment
+(1) Non-current assets
+ASSETS
+April 01, 2015
+As at
+in Million
+March 31, 2016
+March 31, 2017
+Notes
+As at
+75,831.4
+15
+64,780.4
+51,065.1
+25
+(i) Borrowings
+(a) Financial liabilities
+(2) Current liabilities
+39,380.3
+129.8
+254.3
+53,185.8
+30,926.9
+Total non-current liabilities
+259.1
+24
+(d) Other non-current liabilities
+751.4
+1,027.7
+66,549.2
+3,147.9
+(c) Deferred tax liabilities (Net)
+23,074.5
+1,816.7
+1,842.2
+18,958.6
+12,111.1
+23
+(b) Provisions
+1,048.0
+22
+(iii) Other financial liabilities
+10.2
+(ii) Trade payables
+13,597.7
+31,103.0
+51
+14,360.8
+52,061.2
+(ii) Trade payables
+184,625.4
+209,797.1
+153,293.9
+131,439.6
+178,870.2
+Total liabilities
+Total current liabilities
+5,914.7
+2,472.1
+1,471.2
+30
+(d) Current tax liabilities (Net)
+24,447.0
+29,734.4
+62,126.7
+40,159.1
+(c) Provisions
+4,237.8
+4,469.4
+4,620.5
+28
+(b) Other current liabilities
+24,137.4
+6,873.3
+22,116.3
+(iii) Other financial liabilities
+32,430.3
+35,829.2
+43,953.9
+26
+29
+TOTAL EQUITY AND LIABILITIES
+21
+308,926.4
+2,399.3
+19
+(a) Equity share capital
+Equity
+EQUITY AND LIABILITIES
+288,782.2
+501,600.6
+71.9
+299,413.0
+555,302.7
+329,536.5
+614,102.4
+TOTAL ASSETS
+Total current assets
+288,782.2
+12,519.4
+16,798.2
+299,341.1
+329,470.6
+65.9
+2,406.6
+73
+22,949.9
+18
+(c) Other current assets
+26,751.9
+890.8
+2,258.5
+17
+(vi) Other financial assets
+10,481.6
+10,715.5
+10,190.8
+16
+(v) Loans
+37,124.8
+Assets classified as held for sale
+(i) Borrowings
+(b) Share suspense account
+(c) Other equity
+28,511.9
+April 01, 2015
+in Million
+As at
+370,677.3
+404,305.3
+40,852.5
+37,908.6
+March 31, 2016
+March 31, 2017
+Notes
+As at
+As at
+(a) Financial liabilities
+(1) Non-current liabilities
+66
+Liabilities
+Non-controlling interests
+AS AT MARCH 31, 2017
+CONSOLIDATED BALANCE SHEET
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+176 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+2,071.2
+334.8
+278,008.5
+280,414.5
+327,418.2
+329,824.8
+366,396.7
+Equity attributable to the owners of the Company
+363,997.4
+20
+Total equity
+Auditor's Responsibility
+The respective Board of Directors of the Parent, its subsidiary companies and its associate company, which are companies incorporated in
+India, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria
+established by the respective Companies considering the essential components of internal control stated in the Guidance Note on Audit of
+Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include
+the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly
+and efficient conduct of its business, including adherence to the respective company's policies, the safeguarding of its assets, the prevention
+and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
+information, as required under the Act.
+Payment of dividends
+Year ended
+March 31, 2016
+(4.7)
+1.3
+46.2
+(c) Exchange differences in translating the financial statements of a foreign operations
+Total (B)
+(10,461.7)
+17,502.0
+(10,420.2)
+17,503.3
+March 31, 2017
+(XV) Total other comprehensive income (A+B)
+Other Comprehensive Income for the year attributable to:
+Owners of the Company
+- Non-controlling interests
+Total Comprehensive income for the year attributable to:
+- Owners of the Company
+- Non-controlling interests
+Earnings per equity share (face value per equity share - ₹1)
+Basic (in)
+Diluted (in)
+(XVI) Total comprehensive income for the year (XII+XV)
+Notes
+Year ended
+(b) Effective portion of gains and loss on designated portion of hedging instruments in a
+cash flow hedge
+370,677.3
+78,462.3
+(10,461.7)
+-
+(4,410.2)
+46.2
+(3,741.4)
+(3,741.4)
+(4.7)
+Issue of equity shares
+Recognition of share-based payments to employees
+Corporate dividend tax
+Total comprehensive income for the year
+Payment of dividends
+(4.7)
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+CONSOLIDATED STATEMENT
+OF PROFIT AND LOSS
+FOR THE YEAR ENDED MARCH 31, 2017
+* in Million
+(B) Items that may be reclassified to profit or loss
+(a) Debt instruments through other comprehensive income
+See accompanying notes 1 to 80 to the consolidated financial statements
+(4,410.2) m
+In terms of our report attached
+Chartered Accountants
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 26, 2017
+ANNUAL REPORT 2016-17 179
+180
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Balance as at April 1, 2015
+Profit for the year
+Exchange difference arising on translation
+of foreign operations
+[Refer
+Share
+SUNIL R. AJMERA
+Company Secretary
+suspense
+share
+account application
+capital
+Share
+Capital
+money
+Securities Debenture
+premium redemption
+Note
+reserve
+Equity
+SUDHIR V. VALIA
+Wholetime Director
+DILIP S. SHANGHVI
+Managing Director
+UDAY V. BALDOTA
+Chief Financial Officer
+(14,871.9)
+14,353.4
+63,590.4
+70,936.5
+(13,337.6)
+12,794.5
+(1,534.3)
+1,558.9
+56,306.1
+58,251.6
+7,284.3
+12,684.9
+52
+29.0
+18.9
+29.0
+18.9
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+RAJESH K. HIRANANDANI
+Partner
+Mumbai, May 26, 2017
+For DELOITTE HASKINS & SELLS LLP
+(8,927.4)
+46.2
+56,306.1
+1,942.3
+Impairment of goodwill (including amount considered in exceptional items in previous year)
+(Gain) /loss on sale / write off of property, plant and equipment and other intangible assets, net
+(including amount considered in exceptional items)
+4,981.1
+203.6
+Impairment of property, plant and equipment and other intangible assets (including amount
+considered in exceptional items in previous year)
+10,375.3
+12,647.5
+65,706.3
+90,478.7
+108.8
+Depreciation and amortisation expense
+Profit Before Tax
+A. Cash flow from operating activities
+March 31, 2016
+Year ended
+* in Million
+Year ended
+March 31, 2017
+FOR THE YEAR ENDED MARCH 31, 2017
+CONSOLIDATED CASH FLOW STATEMENT
+PHARMA
+Adjustments for:
+(400.4)
+Finance costs
+Interest income
+Expense recognised in respect of share based payments to employees
+(175.2)
+(618.5)
+Sundry balances written back
+1,602.1
+341.8
+Provision / write off for doubtful trade receivables / advances
+(201.3)
+Gain on disposal of an associate entity
+(528.0)
+(479.3)
+Gain on sale of financial assets measured at fair value through profit or loss
+(353.3)
+(72.2)
+Net gain arising on financial assets measured at fair value through profit or loss
+(502.9)
+(420.5)
+Dividend income
+(3,572.2)
+5,232.4
+3,998.0
+(3,711.7)
+SUN
+Wholetime Director
+SUDHIR V. VALIA
+Mumbai, May 26, 2017
+(10,447.5)
+(34.2)
+(34.2)
+(10,110.3)
+(6,750.0)
+24.8
+32.3
+(6,750.0)
+Transfer on exercise of share options
+Transferred from Surplus in Consolidated Statement of Profit and Loss as per the
+Local Law of an overseas subsidiary
+Additional non-controlling interest arising on the acquisition of JSC Biosintez (Refer note 78)
+Transferred from Surplus in Consolidated Statement of Profit and Loss
+Transfer to capital redemption reserve on buy-back of equity shares
+Buy-back of equity shares by overseas subsidiary company
+Expenditure on buy-back of equity shares
+Buy-back of equity shares (Refer note 65)
+32.3
+24.8
+(490.0)
+(490.0)
+63,590.4
+(2,437.2)
+7,284.3
+(30.4)
+(2,406.8)
+(20,557.8)
+pending
+249.7
+Balance as at March 31, 2017
+SAILESH T. DESAI
+Wholetime Director
+DILIP S. SHANGHVI
+Managing Director
+SUNIL R. AJMERA
+Company Secretary
+Chief Financial Officer
+UDAY V. BALDOTA
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+404,305.3
+37,908.6
+366,396.7
+46.2
+7,015.7
+339.7
+(3.4)
+Mumbai, May 26, 2017
+181
+ANNUAL REPORT 2016-17
+RAJESH K. HIRANANDANI
+Chartered Accountants
+For DELOITTE HASKINS & SELLS LLP
+In terms of our report attached
+See accompanying notes 1 to 80 to the Consolidated Financial Statements
+249.7
+reserve
+reserve
+(66)]
+CHANGES IN EQUITY
+CONSOLIDATED STATEMENTOF
+Balance as at April 1, 2015
+Profit for the year
+Exchange difference arising on translation of foreign operations
+Other comprehensive income for the year, net of income tax
+Total comprehensive income for the year
+Corporate dividend tax
+Recognition of share-based payments to employees
+Issue of equity shares
+FOR THE YEAR ENDED MARCH 31, 2017
+Equity
+instrument
+through OCI
+instrument
+through OCI
+Other comprehensive income (OCI)
+Foreign
+Effective
+to owners
+currency
+translation
+reserve
+Non-
+controlling
+TOTAL
+portion of cash
+flow hedges
+Debt
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+*(710.3)
+68,933.4
+(2,406.8)
+(490.0)
+(10,110.3)
+7.5
+(7.5)
+(1,041.7)
+50.6
+# 0.0
+507.5
+54.8
+11,894.6
+(54.8)
+2,083.4
+26.4
+43.8
+7.5
+(50.6)
+1.1 35,578.0 306,456.9
+in Million
+CORPORATE OVERVIEW
+01-07
+of parent
+company
+interests
+6,883.5
+280,414.5
+Exchange difference arising on translation of foreign operations
+69,643.7
+Profit for the year
+329,824.8
+15,943.1
+4,081.1
+1.3
+Balance as at March 31, 2016
+Transferred from Surplus in Consolidated Statement of Profit and Loss as per the
+Local Law of an overseas subsidiary
+Loss as per the Local Law of an overseas subsidiary
+Transferred to Capital Reserve from Consolidated Statement of Profit and
+(620.9)
+(318.6)
+(39.8)
+(39.8)
+(302.3)
+Buy-back of equity shares by subsidiary company
+Utilised during the year
+Transferred from Surplus in Consolidated Statement of Profit and Loss
+Transferred from debentures redemption reserve on repayment of debentures
+Issue of equity shares pursuant to the scheme of amalgamation (Refer note 66)
+Transfer on exercise of share options
+Attributable
+(8,927.4)
+1,041.7
+(8,927.4)
+Other comprehensive income for the year, net of income tax
+45,457.1
+15,943.1
+15,943.1
+28,511.9
+11,126.0
+1,558.9
+308,926.4
+56,583.1
+17,502.0
+1.3
+1.3
+(2,802.4)
+(2,802.4)
+(3,148.6)
+(3,148.6)
+15,943.1
+58,251.6
+(7,219.5)
+12,684.9
+(25.7)
+709,936.5
+(7,245.2)
+(1,469.7)
+98.8
+(1,469.7)
+98.8
+40,852.5
+8,818.6
+(1,534.3)
+32.3
+32.3
+7177)
+232.9
+Issue of equity shares pursuant to the
+334.8
+(334.8)
+scheme of amalgamation (Refer note 66)
+Transfer on exercise of share options
+Transfer from debenture redemption
+reserve on repayment of debentures
+Transferred from Surplus in Consolidated
+Statement of Profit and Loss
+Utilised during the year
+Buy-back of equity shares by subsidiary
+company
+(142.3)
+Transferred to Capital Reserve from
+Consolidated Statement of Profit and
+Loss as per the Local Law of an overseas
+subsidiary
+Profit for the year
+Exchange difference arising on translation
+of foreign operations
+Other comprehensive income for the year,
+net of income tax
+188.9
+132.0
+(132.0)
+(750.0)
+Transferred from Surplus in Consolidated
+Statement of Profit and Loss as per the
+Local Law of an overseas subsidiary
+Balance as at March 31, 2016
+0.6
+Issue of equity shares
+98.8
+2,071.2
+334.8
+allotment
+149.0
+268.0
+18,220.3
+750.0
+Share
+Reserve and surplus
+Capital
+redemption
+reserve
+option Revaluation Amalgamation
+outstanding
+account
+Surplus
+82.1
+39.8
+43.8
+Other comprehensive income for the year,
+net of income tax
+Total comprehensive income for the year
+Payment of dividends
+Corporate dividend tax
+Recognition of share-based payments to
+employees
+1,041.7
+(39.8)
+* in Million
+Legal General
+48.9
+43.8
+1.1 35,578.0 251,630.4
+69,643.7
+Total comprehensive income for the year
+Payment of dividends
+Corporate dividend tax
+Recognition of share-based payments to
+employees
+Issue of equity shares
+Buy-back of equity shares (Refer note 65)
+Expenditure on buy-back of equity shares
+Buy-back of equity shares by overseas
+subsidiary company
+0.2
+(7.5)
+(6.7)
+Transfer to capital redemption reserve on
+buy-back of equity shares
+Transferred from Surplus in Consolidated
+Statement of Profit and Loss
+Additional non-controlling interest arising
+on the acquisition of JSC Biosintez (Refer
+note 78)
+Transferred from Surplus in Consolidated
+Statement of Profit and Loss as per the
+Local Law of an overseas subsidiary
+Transfer on exercise of share options
+Balance as at March 31, 2017
+2,399.3
+*Represents remeasurements of the defined plans
+# (March 31, 2017:
+1,041.7
+31.3
+(6,742.5)
+(34.2)
+456.9 18,585.2
+2,406.6
+Retained
+reserve
+reserve
+reserve earnings
+0.9
+34,828.0 216,743.1
+45,457.1
+*(347.5)
+45,109.6
+(7,219.5)
+(1,469.7)
+750.0
+(1,041.7)
+(302.3)
+(188.9)
+SUN
+PHARMA
+FOR THE YEAR ENDED MARCH 31, 2017
+CHANGES IN EQUITY
+CONSOLIDATED STATEMENTOF
+0.2
+(0.2)
+6.7
+91.2
+98.8
+0.0
+Level 1 inputs are quoted prices (unadjusted) in active
+markets for identical assets or liabilities that the entity can
+access at the measurement date;
+Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the asset
+or liability, either directly or indirectly; and
+Level 3 inputs are unobservable inputs for the asset or liability.
+The Group has consistently applied the following accounting
+policies to all periods presented in these consolidated financial
+statements.
+184
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+a.
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Basis of consolidation
+The consolidated financial statements comprise the
+financial statements of the Parent Company, and its
+subsidiaries as disclosed in Note 39. Control exists when
+the parent has power over the entity, is exposed, or has
+rights, to variable returns from its involvement with the
+entity and has the ability to affect those returns by using
+its power over the entity. Power is demonstrated through
+existing rights that give the ability to direct relevant
+activities, those which significantly affect the entity's
+returns. Subsidiaries are consolidated from the date
+control commences until the date control ceases.
+Profit or loss and each component of other comprehensive
+income are attributed to the owners of the Company and
+to the non-controlling interests. Total comprehensive
+income of subsidiaries is attributed to the owners of the
+Company and to the non-controlling interests even if this
+results in the non-controlling interests having a deficit
+balance.
+net of any accumulated impairment losses. When the
+Group's share of losses of an associate or a joint venture
+exceeds its interest in that associate or joint venture, the
+carrying amount of that interest (including any long-term
+investments) is reduced to zero and the recognition of
+further losses is discontinued except to the extent that the
+Group has obligations or has made payments on behalf of
+the associate or joint venture.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 185
+In addition, for financial reporting purposes, fair value
+measurements are categorised into Level 1, 2, or 3 based on
+the degree to which the inputs to the fair value measurements
+are observable and the significance of the inputs to the fair
+value measurement in its entirety, which are described as
+follows:
+The results and assets and liabilities of associates or joint
+ventures are incorporated in these consolidated financial
+statements using the equity method of accounting, except
+when the investment, or a portion thereof, is classified
+as held for sale, in which case it is accounted for in
+accordance with Ind AS 105. Under the equity method,
+an investment in an associate or a joint venture is initially
+recognised in the consolidated balance sheet at cost and
+adjusted thereafter to recognise the Group's share of the
+profit or loss and other comprehensive income of the
+associate or joint venture. Distributions received from an
+associate or a joint venture reduce the carrying amount
+of the investment. The carrying value of the Group's
+investment includes goodwill identified on acquisition,
+Investments in Associates and Joint Ventures
+Associates are those entities over which the Group has
+significant influence. Significant influence is the power to
+participate in the financial and operating policy decisions
+of the entities but is not control or joint control of those
+policies.
+consideration received and the fair value of any retained
+interest and (ii) the previous carrying amount of the assets
+(including goodwill), and liabilities of the subsidiary and
+any non-controlling interests. All amounts previously
+recognised in other comprehensive income in relation
+to that subsidiary are accounted for as if the Group had
+directly disposed off the related assets or liabilities of the
+subsidiary (i.e. reclassified to profit or loss or transferred
+to another category of equity as specified/permitted
+by applicable Ind AS). The fair value of any investment
+retained in the former subsidiary at the date when control
+is lost is regarded as the fair value on initial recognition
+for subsequent accounting under Ind AS 109, or, when
+applicable, the cost on initial recognition of an investment
+in an associate or a joint venture.
+Impairment of non-current investment in an associate [Nil (Previous year * 16,380)]
+Impairment of investments
+Changes in the Group's ownership interests in subsidiaries
+that do not result in the Group losing control over the
+subsidiaries are accounted for as equity transactions.
+The carrying amounts of the Group's interests and the
+non-controlling interests are adjusted to reflect the
+changes in their relative interests in the subsidiaries.
+Any difference between the amount by which the non-
+controlling interests are adjusted and the fair value of the
+consideration paid or received is recognised directly in
+equity and attributed to owners of the Company.
+Changes in the Group's ownership interests in existing
+subsidiaries
+The financial statements of the Group companies are
+consolidated on a line-by-line basis and intra-Group
+balances, transactions including unrealised gain / loss from
+such transactions and cash flows relating to transactions
+between members of the Group are eliminated upon
+consolidation. These financial statements are prepared by
+applying uniform accounting policies in use at the Group.
+A joint venture is a joint arrangement whereby the parties
+that have joint control of the arrangement have rights to
+the net assets of the joint arrangement. Joint control is the
+contractually agreed sharing of control of an arrangement,
+which exists only when decisions about the relevant
+activities require unanimous consent of the parties sharing
+control.
+An investment in an associate or a joint venture is
+accounted for using the equity method from the date on
+which the investee becomes an associate or a joint venture
+and discontinues from the date when the investment
+ceases to be an associate or a joint venture, or when the
+investment is classified as held for sale.
+Fair value is the price that would be received to sell an asset
+or paid to transfer a liability in an orderly transaction between
+market participants at the measurement date, regardless of
+whether that price is directly observable or estimated using
+another valuation technique. In estimating the fair value
+of an asset or a liability, the Group takes into account the
+characteristics of the asset or liability if market participants
+would take those characteristics into account when pricing
+the asset or liability at the measurement date. Fair value for
+measurement and/or disclosure purposes in these consolidated
+financial statements is determined on such a basis, except for
+share-based payment transactions that are within the scope of
+Ind AS 102, leasing transactions that are within the scope of
+Ind AS 17, and measurements that have some similarities to fair
+value but are not fair value, such as net realisable value in Ind
+AS 2 or value in use in Ind AS 36.
+sale which are measured at the lower of their carrying amount
+and fair value less costs to sell; and (iii) defined benefit plans
+plan assets that are measured at fair values at the end of each
+reporting period, as explained in the accounting policies below.
+49,192.3
+35,576.1
+53,731.0
+26,858.8
+1,813.9
+45.7
+86,628.0
+143.6
+18.0
+80,751.4
+204.4
+86,423.6
+434.5
+80,316.9
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+RAJESH K. HIRANANDANI
+Partner
+Mumbai, May 26, 2017
+UDAY V. BALDOTA
+Chief Financial Officer
+DILIP S. SHANGHVI
+Managing Director
+SUNIL R. AJMERA
+Company Secretary
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 26, 2017
+SUDHIR V. VALIA
+Wholetime Director
+ANNUAL REPORT 2016-17
+The consolidated financial statements have been prepared
+on the historical cost basis, except for: (i) certain financial
+instruments that are measured at fair values at the end of each
+reporting period; (ii) Non-current assets classified as held for
+These financial statements for the year ended March 31, 2017
+are the first financial statements, the Group has prepared in
+accordance with Ind AS.
+2.2 Basis of preparation and presentation
+These are the Group's first Ind AS financial statements. Refer
+Note 76 for the details of first-time adoption exemptions
+availed by the Group.
+For all the periods up to the year ended March 31, 2016, the
+Group had prepared its financial statements in accordance with
+the requirements of previous GAAP, which includes Standards
+notified under the Companies (Accounting Standards) Rules,
+2006 (as amended).
+The Group has prepared its consolidated financial statements
+for the year ended March 31, 2017 in accordance with Indian
+Accounting Standards (Ind AS) notified under the Companies
+(Indian Accounting Standards) Rules, 2015 (as amended)
+together with the comparative period data as at and for the
+year ended March 31, 2016. Further, the Group has prepared
+the opening consolidated balance sheet as at April 01, 2015
+(the transition date) in accordance with Ind AS.
+Historical cost is generally based on the fair value of the
+consideration given in exchange for goods and services.
+2. Significant accounting policies
+2.1 Statement of compliance
+1. General information
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+183
+Sun Pharmaceutical Industries Limited ("the Parent Company”)
+is a public limited company incorporated and domiciled in
+India and has its listing on the BSE Limited and National Stock
+Exchange of India Limited. The addresses of its registered office
+and principal place of business are disclosed in the introduction
+to the annual report. The Company is in the business of
+manufacturing, developing and marketing a wide range of
+branded and generic formulations and Active Pharmaceutical
+Ingredients (APIs). The Parent Company and its subsidiaries
+(hereinafter referred to as "the Company" or "the Group") have
+manufacturing locations spread across the world with trading
+and other incidental and related activities extending to the
+global markets.
+Chartered Accountants
+The difference between the carrying amount of the
+associate or joint venture at the date the equity method
+was discontinued, and the fair value of any retained
+interest and any proceeds from disposing of a part
+interest in the associate or joint venture is included
+in the determination of the gain or loss on disposal of
+the associate or joint venture. In addition, the Group
+accounts for all amounts previously recognised in other
+comprehensive income in relation to that associate or joint
+venture on the same basis as would be required if that
+associate or joint venture had directly disposed off the
+related assets or liabilities.
+b. Operating Cycle
+Operating segments are reported in a manner consistent
+with the internal reporting provided to the chief operating
+decision maker. The chief operating decision maker of
+the Company is responsible for allocating resources and
+assessing performance of the operating segments and
+accordingly is identified as the chief operating decision
+maker.
+Property, plant and equipment
+Items of property, plant and equipment are stated in
+consolidated balance sheet at cost less accumulated
+depreciation and accumulated impairment losses, if any.
+Freehold land is not depreciated.
+Properties in the course of construction for production,
+supply or administrative purposes are carried at cost, less
+any recognised impairment loss. Cost includes professional
+fees and, for qualifying assets, borrowing costs capitalised
+in accordance with the Group's accounting policy. Such
+properties are classified to the appropriate categories of
+property, plant and equipment when completed and ready
+for intended use. Depreciation of these assets, on the
+same basis as other property assets, commences when the
+assets are ready for their intended use.
+When parts of an item of property, plant and equipment
+have different useful lives, they are accounted for as
+separate items (major components) of property, plant and
+equipment.
+An item of property, plant and equipment is derecognised
+upon disposal or when no future economic benefits are
+expected to arise from the continued use of the asset.
+Any gain or loss arising on the disposal or retirement of
+an item of property, plant and equipment is determined
+as the difference between the sales proceeds and the
+carrying amount of property, plant and equipment and is
+recognised in profit or loss.
+Items of property, plant and equipment acquired through
+exchange of non-monetary assets are measured at fair
+value, unless the exchange transaction lacks commercial
+substance or the fair value of either the asset received or
+asset given up is not reliably measurable, in which case the
+acquired asset is measured at the carrying amount of the
+asset given up.
+Depreciation is recognised so as to write off the cost
+of assets (other than freehold land and Capital work-in-
+progress) less their residual values on straight-line method
+over their useful lives as indicated in Part C of Schedule
+Il of the Companies Act, 2013. Leasehold improvements
+are depreciated over period of the lease agreement or the
+useful life, whichever is shorter. Depreciation methods,
+useful lives and residual values are reviewed at the end of
+each reporting period, with the effect of any changes in
+estimate accounted for on a prospective basis.
+The estimated useful lives are as follows:
+Asset Category
+Leasehold land
+Leasehold improvements
+Buildings
+No. of Years
+50-196
+3-10
+5-100
+Buildings taken under finance lease
+Buildings given under operating lease
+Plant and equipment
+CORPORATE OVERVIEW 01-07
+188 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Software for internal use, which is primarily acquired
+from third-party vendors and which is an integral part
+of a tangible asset, including consultancy charges for
+implementing the software, is capitalised as part of the
+2-17
+2-21
+3-15
+Segment Reporting
+Office equipment
+Furniture and fixtures
+lease
+2-15
+Plant and equipment given under operating
+3-25
+30
+10-40
+Vehicles
+When a Group entity transacts with an associate or a
+joint venture of the Group, profits and losses resulting
+from the transactions with the associate or joint venture
+are recognised in the Group's consolidated financial
+statements only to the extent of interests in the associate
+or joint venture that are not related to the Group.
+Goodwill and fair value adjustments to identifiable assets
+acquired and liabilities assumed through acquisition of a
+foreign operation are treated as assets and liabilities of the
+foreign operation and translated at the rate of exchange
+prevailing at the end of each reporting period. Exchange
+differences arising are recognised in other comprehensive
+income.
+f.
+Based on the nature of products / activities of the
+Company and the normal time between acquisition of
+assets and their realisation in cash or cash equivalents, the
+Company has determined its operating cycle as twelve
+months for the purpose of classifications of its assets and
+liabilities as current and non-current.
+C.
+Business combinations
+The Group uses the acquisition method of accounting
+to account for business combinations that occurred on
+or after April 01, 2015. The acquisition date is generally
+the date on which control is transferred to the acquirer.
+Judgment is applied in determining the acquisition date
+and determining whether control is transferred from
+one party to another. Control exists when the Group
+is exposed to, or has rights to, variable returns from its
+involvement with the entity and has the ability to affect
+those returns through power over the entity. In assessing
+control, potential voting rights are considered only if the
+rights are substantive. The Group measures goodwill
+as of the applicable acquisition date at the fair value of
+the consideration transferred, including the recognised
+amount of any non-controlling interest in the acquiree
+and the fair value of the acquirer's previously held equity
+interest in the acquiree (if any), less the net recognised
+amount of the identifiable assets acquired and liabilities
+assumed. When the fair value of the net identifiable
+assets acquired and liabilities assumed exceeds the
+consideration transferred, a bargain purchase gain is
+recognised immediately in the OCI and accumulates the
+same in equity as Capital Reserve where there exists
+clear evidence of the underlying reasons for classifying
+the business combination as a bargain purchase else the
+gain is directly recognised in equity as Capital Reserve.
+Consideration transferred includes the fair values of the
+assets transferred, liabilities incurred by the Group to
+the previous owners of the acquiree, and equity interests
+issued by the Group. Consideration transferred also
+includes the fair value of any contingent consideration.
+Changes in the fair value of the contingent consideration
+that qualify as measurement period adjustments are
+adjusted retrospectively, with corresponding adjustments
+against goodwill or capital reserve, as the case maybe.
+The subsequent accounting for changes in the fair value
+of the contingent consideration that do not qualify as
+measurement period adjustments depends on how
+the contingent consideration is classified. Contingent
+consideration that is classified as equity is not remeasured
+at subsequent reporting dates and its subsequent
+settlement is accounted for within equity. Contingent
+consideration that is classified as an asset or a liability is
+186 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79 FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+remeasured at fair value at subsequent reporting dates
+with the corresponding gain or loss being recognised
+in profit or loss. Consideration transferred does not
+include amounts related to settlement of pre-existing
+relationships.
+A contingent liability of the acquiree is assumed in a
+business combination only if such a liability represents a
+present obligation and arises from a past event, and its
+fair value can be measured reliably. On an acquisition-by-
+acquisition basis, the Group recognises any non-controlling
+interest in the acquiree either at fair value or at the non-
+controlling interest's proportionate share of the acquiree's
+identifiable net assets. Transaction costs that the Group
+incurs in connection with a business combination, such
+as finder's fees, legal fees, due diligence fees and other
+professional and consulting fees, are expensed as incurred.
+If the initial accounting for a business combination is
+incomplete by the end of the reporting period in which
+the combination occurs, the Group reports provisional
+amounts for the items for which the accounting is
+incomplete. Those provisional amounts are adjusted during
+the measurement period (see above), or additional assets
+or liabilities are recognised, to reflect new information
+obtained about facts and circumstances that existed at the
+acquisition date that, if known, would have affected the
+amounts recognised at that date.
+d. Foreign currency
+Foreign currency transactions
+In preparing the financial statements of each individual
+Group entity, transactions in currencies other than
+the entity's functional currency (foreign currencies)
+are translated at exchange rates at the dates of the
+transactions. Monetary assets and liabilities denominated
+in foreign currencies at the reporting date are translated
+into the functional currency at the exchange rate at that
+date Exchange differences arising on the settlement of
+monetary items or on translating monetary items at rates
+different from those at which they were translated on
+initial recognition during the period or in previous period
+are recognised in profit or loss in the period in which they
+arise except for:
+exchange differences on foreign currency borrowings
+relating to assets under construction for future
+productive use, which are included in the cost
+of those assets when they are regarded as an
+adjustment to interest costs on those foreign
+currency borrowings.
+e.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+187
+(i.e. partial disposals of associates or joint arrangements
+that do not result in the Group losing significant
+influence or joint control), the proportionate share of the
+accumulated exchange differences is reclassified to profit
+or loss.
+ANNUAL REPORT 2016-17
+In addition, in relation to a partial disposal of a subsidiary
+that includes a foreign operation that does not result
+For the purposes of presenting these consolidated
+financial statements, the assets and liabilities of Group's
+foreign operations, are translated to the Indian Rupees
+at exchange rates at the end of each reporting period.
+The income and expenses of such foreign operations are
+translated at the average exchange rates for the period.
+Resulting foreign currency differences are recognised in
+other comprehensive income/(loss) and presented within
+equity as part of Foreign Currency Translation Reserve
+(and attributed to non-controlling interests as appropriate).
+When a foreign operation is disposed off, the relevant
+amount in the Foreign Currency Translation Reserve is
+reclassified to profit or loss.
+Foreign operations
+Non-monetary items that are measured in terms of
+historical cost in a foreign currency are not retranslated.
+exchange differences on monetary items receivable
+from or payable to a foreign operation for which
+settlement is neither planned nor likely to occur
+(therefore forming part of the net investment in the
+foreign operation), which are recognised initially in
+other comprehensive income and reclassified from
+equity to profit or loss on repayment of the monetary
+items.
+exchange differences on transactions entered into
+in order to hedge certain foreign currency risks (see
+note 2.2.j). below for hedging accounting policies.
+in the Group losing control over the subsidiary, the
+proportionate share of accumulated exchange differences
+are re-attributed to non-controlling interests and are not
+recognised in profit or loss. For all other partial disposals
+For DELOITTE HASKINS & SELLS LLP
+When the Group loses control of a subsidiary, a gain or
+loss is recognised in profit or loss and is calculated as the
+difference between (i) the aggregate of the fair value of the
+See accompanying notes 1 to 80 to the consolidated financial statements
+(34,035.2)
+Proceeds from disposal of property, plant and equipment and other intangible assets
+1,024.7
+706.0
+Loans/Inter corporate deposits
+Given / placed
+(6,504.6)
+Received back / matured
+6,796.8
+Purchase of investments [including associate and joint venture 1,543.6 Million (Previous year
+1,071.6 Million)]
+(388,310.4)
+(5,045.7)
+5,120.3
+(401,217.2)
+Proceeds from sale of investments
+391,943.9
+416,414.1
+Bank balances not considered as cash and cash equivalents
+Fixed deposits / margin money placed
+182
+10.0
+3,378.7
+46,731.2
+(10,255.5)
+10.6
+3,365.2
+(36,928.6)
+(1,671.8)
+Net cash outflow on acquisition of subsidiaries / business units (Refer note 78)
+Interest received
+55,224.3
+(66,025.5)
+(67,586.6)
+Fixed deposits / margin money matured
+Receipt of rental on assets given under finance lease
+Payments for purchase of property, plant and equipment (including capital-work-in-progress, other
+intangible assets and intangible assets under development)
+B. Cash flow from investing activities
+Net cash from operating activities (A)
+(18,102.7)
+(2,934.5)
+(Increase) in trade receivables
+In terms of our report attached
+(3,449.9)
+(Increase) in inventories
+(Increase) / decrease in other assets
+Movements in working capital:
+95,485.4
+Operating profit before working capital changes
+(6,828.6)
+Effect of exchange rate changes
+166.8
+6.8
+(297.6)
+84,275.5
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+(6,464.2)
+Increase in trade payables
+Income tax paid (net of refund)
+66,858.6
+(19,884.6)
+(20,571.2)
+70,822.1
+86,743.2
+(1,286.4)
+20,922.4
+2,932.7
+91,393.3
+(1,530.7)
+3,624.8
+7,354.5
+Cash generated from operations
+Increase / (decrease) in provisions
+Decrease in other liabilities
+(1,023.0)
+CORPORATE OVERVIEW 01-07
+(1,667.4)
+08-79 FINANCIAL STATEMENTS 80-278
+354.5
+Effect of exchange differences on restatement of foreign currency cash and cash equivalents
+Cash and cash equivalents at the end of the year
+71,834.9
+80,316.9
+Cash and cash equivalents at the beginning of the year
+4,257.4
+4,224.6
+5,752.2
+(18,885.3)
+(22,853.9)
+Net cash used in financing activities (C)
+(1,469.7)
+(490.0)
+(7,216.8)
+Net increase in cash and cash equivalents (A+B+C)
+(2,399.2)
+86,423.6
+Notes:
+STATUTORY REPORTS
+(b) For non cash transactions - refer note 67
+Cash and cash equivalents in cash flow statement
+Less:- cash credit facilities included under loans repayable on demand in note 25
+Cash and cash equivalents (Refer note 14)
+Cash on hand
+80,316.9
+Cheques, drafts on hand
+In current accounts
+Balances with banks
+(a) Cash and cash equivalents comprises of
+in Million
+As at
+March 31, 2016
+March 31, 2017
+As at
+In deposit accounts with original maturity less than 3 months
+Tax on dividend
+91.2
+(3,013.9)
+(45,268.2)
+Repayment of borrowings
+53,639.5
+Proceeds from borrowings
+C. Cash flow from financing activities
+502.9
+(43,715.9)
+82,945.3
+(90,764.9)
+420.5
+(42,216.0)
+Dividend received
+Year ended
+March 31, 2016
+Year ended
+March 31, 2017
+FOR THE YEAR ENDED MARCH 31, 2017
+Dividend paid
+CONSOLIDATED CASH FLOW STATEMENT
+Net cash used in investing activities (B)
+Payment for buy-back of equity shares of parent and buy-back of equity shares held by non-
+* in Million
+(469.5)
+(27,307.8)
+Proceeds from issue of equity shares on exercise of stock options / share application money received
+Finance costs (includes borrowing costs capitalised)
+(3,338.3)
+1,038.6
+2,349.9
+Net increase in working capital demand loans
+24.8
+Payment for share buy-back expenses
+controlling interests of subsidiary
+(34.2)
+Dividend payment to non-controlling interests
+91.3
+(25.7)
+(30.4)
+Emerging Markets
+▸ Presence across majority of markets in Western Europe, Canada,
+Japan and A&NZ.
+▸ Expanding presence in Europe.
+A&NZ & Others
+▶ Leading position in high growth chronic therapies.
+No.1 ranked with 11 classes of doctor categories.
+▶ Product portfolio includes differentiated offerings for hospitals,
+injectables and generics for retail market.
+▶ No. 1 pharma company in India with 8.6% market share and 30
+brands in the country's top 300 brands.
+India Branded Generics
+▸ Key focus markets - Brazil, Mexico, Russia, Romania, South Africa,
+and complementary and affiliated markets.
+Among the largest Indian pharma company in emerging markets.
+Presence in over 100 countries across Africa, Americas, Asia and
+Eastern & Central Europe.
+Western Europe, Canada, Japan,
+six continents
+Largest Indian pharma company in the US.
+4th largest generics company in the US with a strong ANDA
+pipeline (157 ANDAs awaiting approval).
+US Formulations
+GROWTH STREAMS
+Products
+marketed
+>2,000
+>30,000
+Employee
+worldwide
+Manufacturing
+facilities across
+Markets served
+globally
+as on March 31,
+2017
+GROWTH STRATEGIES
+Global revenue
+Presence in generics and specialty segments with more than 420
+approved products.
+Create Sustainable Revenue Streams
+ANNUAL REPORT 2016-17
+▸ Achieve differentiation by focusing on technically complex
+products.
+Acquired Biosintez
+2016
+Global Markets
+Acquired global rights for Seciera and
+Odomzo
+2016
+Country
+Deals
+Year
+Key acquisitions and joint ventures (JV)
+Table 6
+PHARMA
+SUN
+Enhance share of specialty business globally.
+15
+▸ Optimise operational costs.
+▸ Vertically integrated operations.
+Cost Leadership
+▶ Focus on payback timelines
+▸ Ensure acquisitions yield high return on investment.
+▸ Focus on access to products, technology, market presence.
+‣ Use acquisitions to bridge critical capability gaps.
+Business Development
+▸ Future investments directed towards differentiated products.
+Balance Profitability & Investments for Future
+Increasing contribution of specialty and complex products.
+▸ Ensure sustained compliance with global regulatory standards.
+▶ Focus on key markets to achieve critical mass
+▸ Speed to market.
+42
+>150
+Rising prevalence of chronic diseases
+(OooooO
+Australia
+EU5
+Japan
+Canada
+0
+ՏՈ
+500
+513
+577
+739
+776
+1,000
+South Korea
+1,500
+1,955
+(US$)
+GLOBAL PER CAPITA PHARMACEUTICAL SPENDING
+IN 2021¹
+Chart 9
+Other factors like rising per capita income, improving access to
+healthcare facilities, and higher government spending on healthcare
+drive market demand. Moreover, increasing insurance penetration,
+more healthcare awareness and enhanced investments for treating
+chronic ailments serve as key growth drivers.
+and awareness are the prime factors, which determine demand for
+pharmaceutical products in the Indian market.
+The overall penetration of modern medicines is quite low in India.
+The per capita spending on pharmaceuticals in India is one of the
+lowest among emerging markets. Compared to the emerging market
+average per capita spend of about US$ 117 per year, the spending
+in India is approximately US$ 15-25 per year. Affordability, access
+India's pharmaceutical market ranks third in the world in terms of
+volume and 11th in terms of value. At US$ 17.4 Billion, the market
+in India accounted for 1.6% share of the global market in 2016. It is
+expected to grow at a CAGR of 10-13% to US$ 26-30 Billion by 2021.
+INDIAN PHARMACEUTICAL MARKET
+In addition, an increase in abbreviated new drug applications (ANDA)
+and rising uptake of biopharmaceuticals will bolster this growth.
+However, factors such as stringent regulatory requirements and
+unfavourable drug price control policies across various countries
+may restrain the market progress. Growing demand for innovative
+therapeutics for autoimmune diseases treatment and increase in
+USFDA approvals for new molecular entities are further expanding
+the demand for APIs.
+The global active pharmaceutical ingredients (API) market is
+estimated to reach US$ 214 Billion by 2021, compared to US$ 158
+Billion in 2016, representing a CAGR of 6.3%. Rising prevalence of
+oncology ailments and chronic diseases are steering the growth of
+the API market. At the same time, technological advancements in API
+manufacturing is also contributing to market momentum. Besides,
+the growing importance of generics and rapidly increasing geriatric
+healthcare are propelling the market forward.
+Active Pharmaceutical Ingredients (API)4
+2,000
+US$ 4.5 Bn
+Emerging Markets E
+6
+①日
+Growing and sustaining our prominence across markets, therapeutic segments and products.
+OUR BUSINESS MODEL
+In India, the Company enjoys leadership across 11 different classes
+of doctors with 30 brands featuring among top 300 pharmaceutical
+brands. Sun Pharma's global footprint covers the U.S., emerging
+markets, Western Europe, Japan, Canada, Israel, Australia and New
+Zealand. Its Global Consumer Healthcare (GCH) business is ranked
+among the Top 10 across four global markets. Its API business
+footprint is strengthened through 14 world-class API manufacturing
+facilities around the world.
+supported by strong R&D capabilities of about 2,000 scientists and
+R&D investments of over 8% of annual revenues.
+PHARMA
+Sun Pharma is the world's fourth largest specialty generic
+pharmaceutical company. It is India's top pharmaceutical company.
+A vertically integrated business, economies of scale and an extremely
+skilled team enable it to deliver well-timed quality products at
+affordable prices. Sun Pharma provides high-quality medicines
+trusted by customers and patients in over 150 countries. Its global
+presence is supported by 42 manufacturing facilities spread across
+six continents, research and development (R&D) centres across
+the world and a multi-cultural workforce comprising over 50
+nationalities. Sun Pharma fosters excellence through innovation
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+(SUN PHARMA)
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+India
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+4
+Improvement in medical facilities
+5
+Growth of population
+3
+Growing health insurance market
+2
+MARKET -
+KEY GROWTH
+DRIVERS
+INDIAN
+PHARMA
+Increase in disposable income
+1
+Rise in healthcare awareness
+14
+295 117 25
+Pharmaceutical spending in developed markets is estimated to grow
+at 4-7% CAGR from US$ 749 Billion in 2016 to US$ 975-1,005
+Billion by 2021. The US will remain the most important market and a
+key driver of this growth among developed markets.
+13
+14%
+14%
+8%
+US$ 130-
+160 Bn
+51%
+27%
+Original brands
+Generics
+Branded Generics
+Other products
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Chart 4
+GLOBAL GENERIC MARKET SIZE²
+(US$ Bn)
+2013
+99
+2016
+2018
+69
+REST OF WORLD
+41%
+42%
+22%
+ESTIMATED GLOBAL MEDICINE SPENDING BY
+PRODUCT TYPE IN 2021¹
+GLOBAL SPENDING
+10%
+12%
+US$ 1,455-
+1,485 Bn
+56%
+22%
+GLOBAL GENERICS¹
+The global generics market consists of both non-branded and
+branded generics. Branded generics in emerging markets will be the
+key drivers of growth for the overall generics market. This growth
+will be driven by many macroeconomic factors like rising per capita
+incomes, growing healthcare awareness, increasing medical insurance
+penetration and higher incidence of chronic ailments. The efforts of
+governments in emerging markets to achieve universal healthcare are
+also expected to drive the growth of branded generics.
+The global demand for non-branded generic drugs will continue to
+grow as governments, payors and consumers pursue avenues to
+reduce healthcare costs, mainly in the developed economies.
+10
+DEVELOPED MARKETS
+5%
+12%
+14%
+US$ 975-
+1,005 Bn
+69%
+PHARMERGING MARKETS
+22%
+US$ 315-
+345 Bn
+59%
+US$ 168 Bn
+155
+low per capita income in many developing countries, affordability
+also remains a challenge. Many governments, as response to these
+challenges are expanding their public or private healthcare coverage.
+At the same time, they are deepening it to reduce out-of-pocket
+spending. The trend towards the adoption of universal healthcare
+continues. The vision of achieving universal healthcare in the
+developing world will only be fulfilled if governments focus on higher
+spending on healthcare, while ensuring that drugs remain affordable
+to the population at large.
+Outlook
+The global spending on medicines is estimated to grow at 4-7%
+CAGR between 2016 and 2021, to reach approximately US$ 1.5
+Trillion. Pharmaceutical spending growth in developed markets,
+will be driven by oncology, autoimmune and diabetes treatments.
+Developed market spending growth will be driven by original brands
+but will be partly constrained by patent expiries and the cost and
+access controls instituted by payors. Growth in pharmerging markets
+will continue to be fuelled by branded-generic and pure generic
+products.
+Spending on specialty medicines set to rise
+The development of specialty medicines is consistently increasing.
+The share of global spending on specialty drugs will continue to rise
+from about 30% in 2016 to about 35% by 2021. This spending on
+specialty medicines will be mainly driven by the US and Western
+European markets.
+1,105
+318
+170
+87
+2016
+Brand
+Loss of
+exclusivity
+Developed
+Markets
+110
+21
+24
+1,455-1,485
+Generic*
+DRIVERS OF PHARMACEUTICAL SPENDING - 2016-2021¹
+(US$ Bn)
+Chart 5
+Access to modern healthcare continues to be a challenge in many
+parts of the developing and underdeveloped economies. Given the
+Accessibility and affordability
+80
+34%
+US$ 235 Bn
+66%
+191
+92
+67%
+33%
+US$ 283 Bn
+Chart 3
+Branded Generics
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+Growth drivers of global pharmaceutical industry2,3
+Changing demographic pattern
+Ageing population and growing life expectancy will remain a long-
+term growth driver for global pharmaceutical consumption. The
+combination of population ageing and increased life expectancy - up
+from an estimated 72.3 years in 2014 to 73.3 years in 2019 - will
+take the number of people aged 65-plus to over 604 Million, or 10.8%
+of the total global population. This number is anticipated to be even
+higher in Western Europe (nearly 21%) and Japan (28%).
+Factors that have contributed to enhanced life expectancy are
+declining infant mortality, enhanced living conditions, improved
+sanitation, better prevention of communicable diseases, and growing
+access to healthcare. Increased life expectancy, coupled with
+other macroeconomic factors (rising per capita incomes, growing
+healthcare awareness, enhanced medical insurance penetration) will
+remain key growth drivers for the pharmaceutical industry.
+Prevalence of chronic diseases
+The spread of chronic diseases is having serious health repercussions
+in both developed and emerging countries. Sedentary lifestyles,
+urbanisation and changing food habits are leading to higher
+incidence of chronic diseases - globally. Obesity, cardiovascular
+diseases, hypertension, and diabetes are now causing widespread
+health problems. These trends will continue to challenge public
+health systems to meet increasing demand for drugs and treatments.
+Non-Branded Generics
+PHARMA
+SUN
+9
+33
+HIV
+25
+Others
+230
+0
+50
+100
+150
+200
+250
+SPENDING 2021
+Oncology
+120 - 135
+Diabetes
+95-110
+Pain
+75-90
+Autolmmune
+Antiviral EX-HIV
+37
+Mental Health
+45
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+Chart 2
+GLOBAL SPENDING ON MEDICINES¹
+(US$ Bn)
+SPENDING 2016
+Oncology
+75
+75-90
+Cardiovascular
+Pain
+68
+Diabetes
+66
+Antibiotics and Vaccines
+54
+Respiratory
+54
+Autolmmune
+70
+Pharmerging
+Markets
+Cardiovascular
+Antibiotics and Vaccines
+2016
+2021
+CAGR
+CAGR
+749
+243
+5%
+10%
+975-1,005
+4-7%
+315-345
+6-9%
+112
+4% 130-160
+3-6%
+1,105
+6% 1,455-1,485
+4-7%
+R&D Centre
+ANNUAL REPORT 2016-17
+Regions
+Developed
+Pharmerging
+Other markets
+Global
+pharmaceutical
+market
+(US$ Bn)
+2016-2021
+2011-16
+GLOBAL PHARMACEUTICAL SPENDING¹
+60-70
+Respiratory
+60-70
+Mental Health
+Antiviral EX-HIV
+35-40
+35-40
+HIV
+35-40
+Others
+70-80
+360-415
+50 100 150 200 250 300 350 400 450
+Note: Includes 8 developed and 6 pharmerging countries: U.S., EU5, Japan, Canada, China, Brazil Russia, India, Turkey, Mexico
+The key trends for the next five years:
+▸ The US will continue as the world's largest pharmaceutical
+market.
+▸ New innovative products will drive the growth in pharmaceutical
+spending in developed markets, but will be partly offset by patent
+expiries. Growth will be driven primarily by oncology, autoimmune
+and diabetes treatments.
+► Pharmerging markets will grow faster than developed markets,
+driven mainly by rising income levels, increased healthcare
+awareness, government policies directed at achieving universal
+healthcare and increasing incidence of chronic ailments.
+▸ Innovation in specialty medicines will drive the share of global
+specialty spending from 30% in 2016 to 35% in 2021. This increase
+will be driven by the acceptance of new breakthrough medicines.
+▸ The specialty segment will be a key focus area for payers and they
+are likely to focus on lowering healthcare costs and the therapeutic
+value offered by such specialty medicines. The US and Western
+Europe will be the key drivers of specialty medicines.
+Table 1
+0
+Other
+Markets**
+2021
+ANNUAL REPORT 2016-17
+243
+BRUKE
+400
+UltraSh
+NMA
+(US$ Bn)
+PHARMERGING MARKETS
+PHARMACEUTICAL SPENDING¹
+Region/
+2011-16
+2016-2021
+2016
+2021
+Country
+CAGR
+CAGR
+China
+117
+12%
+140-170
+315-345
+CAGR
+6-9%
+(US$ Bn)
+Constant US$
+2016
+2021
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Analytical Laboratory
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+5-8%
+SUN
+ULTRASHIELD
+500
+PLUS
+Pharmerging markets
+Pharmerging markets' pharmaceutical spending stood at around
+US$ 243 Billion in 2016. It is estimated to grow at 6-9% CAGR during
+2016-21 to reach US$ 315-345 Billion by 2021.
+Chart 8
+PHARMERGING MARKETS PHARMACEUTICAL SPENDING¹
+Table 3
+BRUKER
+462
+Tier 2
+11%
+Pharmerging
+243
+10%
+315-345
+6-9%
+Markets
+(Pharmerging markets: China, Brazil, Russia, India, Venezuela, Poland, Argentina,
+Turkey, Mexico, Vietnam, South Africa, Thailand, Indonesia, Romania, Egypt,
+Pakistan, Ukraine, Algeria, Colombia, Nigeria, Saudi Arabia and Russia)
+2016
+2021
+Constant US$
+Overall growth in pharmerging markets will be mainly driven by the
+Tier II and Tier III markets. India and Brazil are expected to be key
+contributors to this growth, with the Chinese growth slowing down.
+The main drivers of growth in pharmerging markets include:
+1. Rising per capita incomes enable higher spending on healthcare.
+2. Increasing insurance coverage.
+3. Growing initiatives by various governments towards achieving
+universal healthcare, resulting in higher allocation of government
+spending on healthcare.
+4. Growing health awareness.
+5. Rising incidences of chronic ailments and lifestyle diseases.
+Global consumer healthcare industry6,7
+The global consumer healthcare (GCH) market grew by 4.3% in 2016
+to reach US$ 122 Billion. The US and China continue to be the largest
+GCH markets and together account for 44% of the global share.
+Among emerging markets, Brazil, Russia and India account for almost
+9% of the global market. In 2016, these markets grew faster than the
+global average with Brazil growing at 8.8%, Russia at 11.3% and India
+at 8.2%.
+Growing healthcare awareness is driving the demand in the GCH
+market. Vitamins, cough and cold, and allergy account for over 50%
+of spending in the market. The increasing use of online resources
+to access healthcare information has empowered people to seek
+various available treatments. This is leading to self-medication and
+driving market momentum.
+ANNUAL REPORT 2016-17
+Markets
+6-9%
+82-86
+7%
+75-85
+8-11%
+Markets
+Brazil
+27
+11%
+32-36
+7-10%
+Russia
+56
+12
+14-18
+5-8%
+India
+17
+13%
+26-30
+10-13%
+Tier 3
+62
+11%
+SUN
+12
+Japan
+2016-2021
+CAGR
+6-9%
+1-4%
+EU5 PHARMACEUTICAL SPENDING¹
+(US$ Bn)
+Germany
+43
+4.4%
+49-59
+2-5%
+France
+32
+0.7%
+33-37
+(-1)-2%
+Italy
+29
+5.2%
+34-38
+1-4%
+U.K.
+170-200
+3.9%
+152
+EU5
+11
+SUN
+PHARMA
+Developed markets
+Russia
+Table 2
+Western Europe
+Pharmaceutical spending in the top five European markets (Germany,
+France, Italy, Spain and the UK) is expected to grow at around 1-4%
+CAGR. Overall spending in these markets is estimated to increase
+from US$ 152 Billion in 2016 to US$ 170-200 Billion in 2021. This
+sluggish progress reflects efforts made by governments to control
+healthcare spending, owing to budget constraints and muted
+economic growth in the region. Besides, there is uncertainty on the
+impact of Brexit and its influence on the pharmaceutical market.
+Chart 6
+27
+DEVELOPED MARKETS - PHARMACEUTICAL
+SPENDING¹
+2011-16
+Country
+2016
+2021
+CAGR
+U.S.
+462
+6.9%
+645-675
+(US$ Bn)
+Japan's pharmaceutical spending stood at approximately US$ 90
+Billion in 2016. It is estimated to grow at a sluggish pace during
+2016-2021 to reach US$ 90-94 Billion by 2021. The government's
+focus on pricing has resulted in the low growth trajectory of the
+market. Moreover, the Japanese government has been advocating
+the use of low-cost generics to control overall pharmaceutical
+spending in the country. Over the past few years, the country has
+implemented regulations to encourage the use of generics. This,
+coupled with the periodic price cuts announced by the government,
+is likely to limit the overall growth of the Japanese market. However,
+given the government's favourable stance towards generics, their
+volumes are likely to keep growing over the next few years.
+6.7%
+4-7%
+13
+6.3%
+13-16
+0-3%
+Developed
+Markets
+749
+5.4%
+975-1,005
+4-7%
+USA
+2016
+2021
+Constant US$
+The US pharmaceutical market growth is estimated to grow by 6-9%
+CAGR from US$ 462 Billion in 2016 to US$ 645-675 Billion in 2021.
+Innovative specialty products will be the key driver of this growth.
+Overall, the increase in branded product sales is likely to be partly
+constrained by patent expiries and low-cost generics. Cumulative
+patent expires in the US is estimated at US$ 144 Billion over the
+2017-2021 period, including expiration of patents on biologics.
+Chart 7
+US PHARMACEUTICAL SPENDING¹
+(US$ Bn)
+6-9%
+CAGR 645-675
+Australia
+3-6%
+14-18
+2.9%
+1-4%
+CAGR
+170-200
+Spain
+21
+3.2%
+23-27
+1-4%
+152
+Japan
+34-38
+90
+90-94
+(-1)-2%
+Canada
+19
+3.0%
+27-31
+2-5%
+South Korea
+13
+2.0%
+2016
+USA
+Europe
+29.0
+30
+PROPERTY, PLANT & EQUIPMENT AND OTHER
+INTANGIBLE ASSETS (AT COST/DEEMED COST)
+(Billion)
+366
+FY17
+330
+26
+FY16
+Indian Branded
+Generics Business
+15%
+Global Markets
+Acquired URL's generic business
+FY17
+Emerging Markets
+US Business
+18.9
+FY16
+137
+FY16
+45
+BUSINESS-WISE REVENUE SHARE
+5%
+9%
+FY16
+FINANCIAL STATEMENTS 80-278
+76
+88
+ADJUSTED EARNING PER SHARE (Post exceptional items)
+(Per Share)
+70
+FY17
+FY16
+MARKET CAPITALISATION
+(US$ Billion)
+153
+FY17
+Western Europe, Canada,
+A&NZ & Other Markets
+45%
+Active Pharmaceutical
+Products commercialised
+BLA awaiting approval
+3
+Products at filing stage
+2
+Products under development
+▶In April 2016, the Company received approval from USFDA for
+its New Drug Application (NDA) related to BromSite™ (bromfenac
+ophthalmic solution) 0.075%. BromSite™ is the first non-steroidal
+anti-inflammatory drug (NSAID) approved by the USFDA to prevent
+pain and treat inflammation in the eye for patients undergoing
+cataract surgery; other NSAIDs in this class are currently indicated
+for the treatment of inflammation and reduction of pain. BromSite™
+is the first bromfenac ophthalmic solution formulated in DuraSite™
+a polymer-based formulation that can be used to improve
+solubility, absorption, bioavailability, and residence time, compared
+to conventional topical therapies. Sun Pharma, subsequently
+commercialised BromSite™ in the US market in November 2016.
+This was the Company's first branded specialty ophthalmic product
+launch in the US.
+▶In May 2016, Sun Pharma announced positive results of two
+pivotal Phase-3 clinical trials of tildrakizumab in patients with
+moderate-to-severe plaque psoriasis. The co-primary efficacy
+endpoints of the placebo controlled studies were: the proportion
+of participants with Psoriasis Area Sensitivity Index 75 (PASI 75)
+response at week 12, compared to placebo and the proportion of
+participants with a Physician's Global Assessment (PGA) score of
+clear or minimal with at least a 2-grade reduction from baseline
+at week 12, compared to placebo. The overall safety profile of
+tildrakizumab in both Phase-3 clinical trials was consistent with the
+safety data observed in previously reported studies. The second
+study also included an etanercept comparator arm, with a key
+secondary endpoint comparing tildrakizumab and etanercept on
+PASI 75 and PGA. tildrakizumab 200mg was superior to etanercept
+on both PASI 75 and PGA endpoints at week 12, while the 100 mg
+dose showed superiority to etanercept on PASI 75 only.
+▶ Subsequently, in July 2016, Sun Pharma announced a licensing
+agreement with Almirall S.A. (Spain) for the development and
+commercialisation of tildrakizumab for psoriasis in Europe. Under
+terms of this licence agreement, Almirall paid Sun Pharma an initial
+upfront payment of US$ 50 Million. Moreover, Sun Pharma will
+also be eligible to receive development and regulatory milestone
+payments and, additionally, sales milestone payments and royalties
+on net sales. Almirall will be able to lead European studies, and
+participate in larger global clinical studies for psoriasis indication
+subject to the terms of Sun Pharma - Merck agreements, as well as
+certain cost sharing agreements. Sun Pharma will continue to lead
+development of tildrakizumab for other indications, where Almirall
+will have the right of first negotiation for certain indications
+in Europe.
+▸ Post this licensing agreement, in March 2017, Sun Pharma
+and Almirall announced the validation of the regulatory filing of
+tildrakizumab with the European Medicines Agency (EMA). This filing
+was done by Almirall with EMA. Post the close of the financial year,
+in May 2017, Sun Pharma announced the acceptance of the Biologics
+License Application (BLA) by the USFDA. Hence, tildrakizumab has
+been filed in both, the US and Europe and is awaiting regulatory
+approval.
+▶ In July 2016, Sun Pharma announced the launch of Gemcitabine
+InfuSMART in Europe. InfuSMART is a technology in which
+oncology products are developed in a ready-to-administer (RTA)
+bag. Until now, compounding of oncology products was done at
+compounding centres or in hospital pharmacies, an extra step before
+the medicine could be administered to patients. With the roll-out
+of Gemcitabine InfuSMART, Sun Pharma becomes world's first
+pharmaceutical company to manufacture and launch a licensed RTA
+oncology product. The InfuSMART concept involves dose banding
+practice. This means, through agreement between prescribers and
+pharmacists, standardised doses of intravenous cytotoxic drugs
+are used for ranges (or "bands") of doses calculated for individual
+patients. More InfuSMART oncology products are currently in Sun
+Pharma's pipeline to be rolled out in future.
+▶In July 2016, Sun Pharma in-licensed ELEPSIA XRTM
+(Levetiracetam Extended Release tablets) from Sun Pharma
+Advanced Research Company Ltd. (SPARC). As per the licensing
+agreement, SPARC licensed ELEPSIA XRTM to Sun Pharma for the
+US market for an up-front payment of US$10 Million plus milestones
+and royalties on sales. ELEPSIA XRTM was approved by the USFDA
+in March 2015. However, in September 2015, SPARC received
+a complete response letter (CRL) from the USFDA rescinding its
+earlier approval, citing that the compliance status of the Halol
+manufacturing facility of Sun Pharma was not acceptable on the date
+of approval. Sun Pharma has undertaken a detailed remediation at
+Halol for restoring cGMP compliance status for the site.
+18
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+2013
+Licensing agreement with Almirall for
+1
+FY17
+4
+The year under review was eventful for Sun Pharma's specialty
+initiatives. The Company significantly enhanced its global specialty
+pipeline through acquisitions and partnerships as well as made
+substantial progress in successfully completing clinical trials for key
+products. Some of the key highlights of the specialty initiatives for
+the year were:
+Ingredients (API) and Others
+26%
+BUSINESS MIX
+26%
+O
+FY17
+74%
+187
+217
+India
+*EBITDA = Gross Sales - (Cost of Material Consumed + Purchase of stock-in-trade + Change in inventories of Finished Goods, Work-in Progress and
+Stock-in-Trade + Employee Benefits Expense + Other Expenses)
+ANNUAL REPORT 2016-17
+17
+SUN
+PHARMA
+Operational highlights, FY17
+Significant ramp-up in specialty pipeline
+Global speciality portfolio
+(*Billion)
+International
+FY16
+Rationale
+Enhances specialty pipeline
+Local manufacturing capability to enhance presence in
+Russian market
+Strengthening the distribution of tildrakizumab in Europe
+Entry into Japan
+Distribution services agreement in India for brand 'Oxra'
+& 'Oxramet'Ⓡ (brands of dipagliflozin, used for diabetes
+treatment)
+Strengthens branded ophthalmic portfolio in U.S.
+Vertical integration for controlled substances business
+Distribution services agreement in India for brand 'Axcer'Ⓡ
+(brand of ticagrelor, used for the treatment of acute coronary
+syndrome)
+USA
+Strengthens the position as the 5th largest Global Specialty
+Generic pharma company and No.1 pharma company in India
+with strong positioning in emerging markets
+Strengthened the specialty product pipeline
+Strengthen ocular specialty pipeline
+Added 107 products to the US portfolio
+Access to branded derma product
+Dermatology and topical product manufacturing plant at
+Israel and Canada
+Import registration with DEA, API Plant approved by DEA in
+Tennessee, USA
+Dosage form plant (NJ, USA) and IP Dosage form plant
+(Ohio, USA)
+Entry into the US market
+Sterile injectable capacity in the US, supported by strong
+R&D capabilities
+Global Markets
+India
+Global Markets
+Sun Pharma - Ranbaxy Merger
+2016
+tildrakizumab for Psoriasis
+NET WORTH
+Acquired 14 brands from Novartis
+Japan
+2016
+Distribution agreement with
+India
+AstraZeneca
+2015
+Acquisition of InSite Vision
+USA
+2015
+Acquisition of GSK's Opiates Business
+2015
+Distribution agreement with
+2015
+2014
+2014
+AstraZeneca
+Global Markets
+API Plant
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+Key performance indicators
+GROSS SALES
+(Billion)
+FY17
+FY16
+EBITDA*
+(Billion)
+303
+FY17
+NET PROFIT AFTER MINORITY INTEREST
+(Billion)
+FY17
+In-licensing agreement with Merck for
+tildrakizumab- a biologic for psoriasis
+Acquired Pharmalucence
+FY16
+BOOK VALUE PER SHARE
+(Per Share)
+16
+USA Ohio, USA
+Detroit, USA
+279
+1997
+2013
+Formation of Sun-Intrexon JV
+2012
+Acquired Caraco
+Acquired DUSA Pharma, Inc.
+USA
+2010
+Acquired Taro Pharmaceutical
+Israel
+Industries Ltd.
+FY17
+New Jersey,
+2008
+Acquired Chattem Chemicals, Inc.
+Tennessee, USA
+2005
+Assets of Able Labs
+Formulation plant in Bryan
+Debt instruments and equity instruments at fair value
+through profit or loss (FVTPL)
+Equity instruments measured at fair value through
+other comprehensive income (FVTOCI)
+Debt instruments at amortised cost
+A 'debt instrument' is measured at the amortised cost if
+both the following conditions are met:
+When the Group is committed to a sale plan involving loss
+of control of a subsidiary, all of the assets and liabilities
+of that subsidiary are classified as held for sale when the
+criteria described above are met, regardless of whether the
+Group will retain a non-controlling interest in its former
+subsidiary after the sale.
+b)
+The asset is held within a business model whose
+objective is to hold assets for collecting contractual
+cash flows, and
+Contractual terms of the asset give rise on specified
+dates to cash flows that are solely payments of
+principal and interest (SPPI) on the principal amount
+outstanding.
+Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+a)
+Subsequent measurement
+For purposes of subsequent measurement, financial assets
+are classified in four categories:
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost is
+calculated by taking into account any discount or premium
+on acquisition and fees or costs that are an integral part of
+the EIR. The EIR amortisation is included in Other Income
+All financial assets are recognised initially at fair value
+plus, in the case of financial assets not recorded at fair
+value through profit or loss, transaction costs that are
+attributable to the acquisition of the financial asset.
+Purchases or sales of financial assets that require delivery
+of assets within a time frame established by regulation or
+convention in the market place (regular way trades) are
+recognised on the trade date.
+Initial recognition and measurement
+When the Group is committed to a sale plan involving
+disposal of an investment, or a portion of an investment, in
+an associate or joint venture, the investment or the portion
+of the investment that will be disposed off is classified as
+held for sale when the criteria described above are met,
+and the Group discontinues the use of the equity method
+in relation to the portion that is classified as held for sale.
+Financial assets
+a financial asset of one entity and a financial liability or
+equity instrument of another entity.
+Financial instruments
+Non-current assets (and disposal groups) classified as held
+for sale are measured at the lower of their carrying amount
+and fair value less costs to sell. Non-current assets are not
+depreciated or amortised.
+After the disposal takes place, the Group accounts for
+any retained interest in the associate or joint venture
+in accordance with Ind AS 109 unless the retained
+interest continues to be an associate or a joint venture,
+in which case the Group uses the equity method (see the
+accounting policy regarding investments in associates or
+joint ventures above).
+Any retained portion of an investment in an associate or a
+joint venture that has not been classified as held for sale
+continues to be accounted for using the equity method.
+The Group discontinues the use of the equity method at
+the time of disposal when the disposal results in the Group
+losing significant influence over the associate or joint
+venture.
+Debt instruments at amortised cost
+A financial instrument is any contract that gives rise to
+In addition, the Group may elect to designate a debt
+instrument, which otherwise meets amortised cost or
+FVTOCI criteria, as at FVTPL. However, such election
+is allowed only if doing so reduces or eliminates a
+measurement or recognition inconsistency (referred to as
+'accounting mismatch').
+SUN
+The contractual rights to receive cash flows from the
+asset have expired, or
+asset (or disposal group) and its sale is highly probable.
+Management must be committed to the sale, which should
+be expected to qualify for recognition as a completed sale
+within one year from the date of classification.
+A financial asset (or, where applicable, a part of a financial
+asset or part of a group of similar financial assets) is
+primarily derecognised (i.e. removed from the Group's
+consolidated balance sheet) when:
+Derecognition
+Equity instruments included within the FVTPL category
+are measured at fair value with all changes recognised in
+the profit or loss.
+If the Group decides to classify an equity instrument as
+at FVTOCI, then all fair value changes on the instrument,
+including foreign exchange gain or loss and excluding
+dividends, are recognised in the OCI. There is no recycling
+of the amounts from OCI to profit or loss, even on sale
+of investment. However, the Group may transfer the
+cumulative gain or loss within equity.
+AS103 applies are classified as at FVTPL. For all other
+equity instruments, the Group may make an irrevocable
+election to present subsequent changes in the fair value
+in OCI. The Group makes such election on an instrument-
+by-instrument basis. The classification is made on initial
+recognition and is irrevocable.
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which are
+held for trading and contingent consideration recognised
+by an acquirer in a business combination to which Ind
+Equity instruments
+FVTPL is a residual category for debt instruments. Any
+debt instrument, which does not meet the criteria for
+categorisation as at amortised cost or as FVTOCI, is
+classified as at FVTPL.
+Debt instrument at FVTPL
+Debt instruments included within the FVTOCI category
+are measured initially as well as at each reporting date
+at fair value. Fair value movements are recognised in the
+other comprehensive income (OCI). However, the Group
+recognises interest income, impairment losses & reversals
+and foreign exchange gain or loss in the profit or loss.
+On derecognition of the asset, cumulative gain or loss
+previously recognised in OCI is reclassified from the equity
+to profit or loss. Interest earned whilst holding FVTOCI
+debt instrument is reported as interest income using the
+EIR method.
+The contractual terms of the instrument give rise on
+specified dates to cash flows that are SPPI on the
+principal amount outstanding.
+The objective of the business model is achieved both
+by collecting contractual cash flows and selling the
+financial assets, and
+b)
+a)
+A 'debt instrument' is measured as at FVTOCI if both of
+the following criteria are met:
+Debt instrument at FVTOCI
+in the profit or loss. The losses arising from impairment are
+recognised in the profit or loss.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+192
+PHARMA
+ANNUAL REPORT 2016-17 191
+j.
+Research and development
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+Payments to third parties that generally take the form
+of up-front payments and milestones for in-licensed
+products, compounds and intellectual property are
+capitalised since the probability of expected future
+economic benefits criterion is always considered to be
+satisfied for separately acquired intangible assets.
+The expenditure to be capitalised include the cost of
+materials and other costs directly attributable to preparing
+the asset for its intended use. Other development
+expenditure is recognised in profit or loss as incurred.
+the Group intends to and has sufficient resources to
+complete development and to use or sell the asset.
+future economic benefits are probable; and
+the product or process is technically and commercially
+feasible;
+development costs can be measured reliably;
+་
+incurred. Development activities involve a plan or design
+for the production of new or substantially improved
+products and processes. An internally-generated intangible
+asset arising from development is recognised if and only if
+all of the following have been demonstrated:
+Expenditure on research activities undertaken with the
+prospect of gaining new scientific or technical knowledge
+and understanding are recognised as an expense when
+Other intangible assets that are acquired by the Group
+and that have finite useful lives are measured at cost less
+accumulated amortisation and accumulated impairment
+losses, if any. Subsequent expenditures are capitalised
+only when they increase the future economic benefits
+embodied in the specific asset to which they relate.
+Intangible assets with indefinite useful lives that are
+acquired separately are carried at cost less accumulated
+impairment losses.
+Other intangible assets
+On disposal of a cash-generating unit to which goodwill is
+allocated, the goodwill associated with the disposed cash-
+generating unit is included in the carrying amount of the
+cash-generating unit when determining the gain or loss on
+disposal.
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-controlling
+interest in the acquiree, over the fair value of the Group's
+share of identifiable net assets acquired. Goodwill is
+measured at cost less accumulated impairment losses. A
+cash-generating unit to which goodwill has been allocated
+is tested for impairment annually, or more frequently
+when there is an indication that the unit may be impaired.
+The goodwill acquired in a business combination is, for
+the purpose of impairment testing, allocated to cash-
+generating units that are expected to benefit from the
+synergies of the combination. Any impairment loss
+for goodwill is recognised directly in profit or loss. An
+impairment loss recognised for goodwill is not reversed in
+subsequent periods.
+Goodwill
+g. Goodwill and other intangible assets
+related tangible asset. Subsequent costs associated with
+maintaining such software are recognised as expense as
+incurred. The capitalised costs are amortised over the
+lower of the estimated useful life of the software and the
+remaining useful life of the tangible fixed asset.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+The Group has transferred its rights to receive
+contractual cash flows from the asset or has assumed
+an obligation to pay the received cash flows in full
+without material delay to a third party under a 'pass-
+through' arrangement; and either (a) the Group has
+transferred substantially all the risks and rewards of
+the asset, or (b) the Group has neither transferred nor
+retained substantially all the risks and rewards of the
+asset, but has transferred control of the asset.
+Acquired research and development intangible assets
+which are under development, are recognised as In-
+Process Research and Development assets ("IPR&D”).
+IPR&D assets are not amortised, but evaluated for
+potential impairment on an annual basis or when there
+are indications that the carrying value may not be
+recoverable. Any impairment charge on such IPR&D assets
+is recognised in profit or loss. Intangible assets relating to
+products under development, other intangible assets not
+available for use and intangible assets having indefinite
+useful life are tested for impairment annually, or more
+frequently when there is an indication that the assets
+may be impaired. All other intangible assets are tested for
+impairment when there are indications that the carrying
+value may not be recoverable.
+FOR THE YEAR ENDED MARCH 31, 2017
+ANNUAL REPORT 2016-17
+PHARMA
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Non-current assets and disposal groups are classified as
+held for sale if their carrying amount will be recovered
+principally through a sale transaction rather than
+through continuing use. This condition is regarded as
+met only when the asset (or disposal group) is available
+for immediate sale in its present condition subject only
+to terms that are usual and customary for sales of such
+Non-current assets held for sale
+In respect of assets other than goodwill, impairment losses
+recognised in prior periods are assessed at each reporting
+date for any indications that the loss has decreased or
+no longer exists. An impairment loss is reversed if there
+has been a change in the estimates used to determine
+the recoverable amount. An impairment loss is reversed
+only to the extent that the asset's carrying amount does
+not exceed the carrying amount that would have been
+determined, net of depreciation or amortisation, if no
+impairment loss had been recognised.
+An impairment loss is recognised in the profit or loss
+if the estimated recoverable amount of an asset or its
+cash generating unit is lower than its carrying amount.
+Impairment losses recognised in respect of cash-
+generating units are allocated first to reduce the carrying
+amount of any goodwill allocated to the units and then to
+reduce the carrying amount of the other assets in the unit
+on a pro-rata basis.
+The recoverable amount of an asset or cash-generating
+unit (as defined below) is the greater of its value in use and
+its fair value less costs to sell. In assessing value in use,
+the estimated future cash flows are discounted to their
+present value using a pre-tax discount rate that reflects
+current market assessments of the time value of money
+and the risks specific to the asset or the cash-generating
+unit for which the estimates of future cash flows have
+not been adjusted. For the purpose of impairment testing,
+assets are grouped together into the smallest group of
+assets that generates cash inflows from continuing use
+that are largely independent of the cash inflows of other
+assets or groups of assets (the "cash-generating unit").
+amount is estimated in order to determine the extent of
+the impairment loss, if any.
+i.
+h. Impairment of non-financial assets other than goodwill
+The carrying amounts of the Group's tangible and
+intangible assets are reviewed at each reporting date to
+determine whether there is any indication of impairment.
+If any such indication exists, then the asset's recoverable
+For transition to Ind AS, the Group has elected to
+continue with the carrying value of all of its intangible
+assets recognised as of April 01, 2015 i.e. transition date,
+measured as per the previous GAAP and use that carrying
+value as its deemed cost as of the transition date.
+Intangible assets are de-recognised either on their disposal
+or where no future economic benefits are expected from
+their use. Gain or loss arising on such de-recognition
+is recognised in profit or loss, and are measured as the
+difference between the net disposal proceeds, if any, and
+the carrying amount of respective intangible assets as on
+the date of de-recognition.
+De-recognition of intangible assets
+The estimated useful life and amortisation method are
+reviewed at the end of each reporting period, with the
+effect of any changes in estimate being accounted for on a
+prospective basis.
+The estimated useful life and the amortisation method for
+intangible assets with a finite useful life are reviewed at
+the end of each reporting period, with the effect of any
+changes in estimate being accounted for on a prospective
+basis.
+The estimated useful lives for Product related intangibles
+and Other intangibles ranges from 5 to 20 years.
+Amortisation is recognised on a straight-line basis over
+the estimated useful lives of intangible assets. Intangible
+assets that are not available for use are amortised from the
+date they are available for use.
+The consideration for acquisition of intangible asset which
+is based on reaching specific milestone that are dependent
+on the Group's future activity is recognised only when the
+activity requiring the payment is performed.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+190
+SUN
+When the Group has transferred its rights to receive cash
+flows from an asset or has entered into a pass-through
+arrangement, it evaluates if and to what extent it has
+retained the risks and rewards of ownership. When it
+has neither transferred nor retained substantially all
+of the risks and rewards of the asset, nor transferred
+control of the asset, the Group continues to recognise the
+recognition. As a practical expedient, the Group uses a
+provision matrix to determine impairment loss allowance
+on portfolio of its trade receivables. The provision matrix
+is based on its historically observed default rates over the
+expected life of the trade receivables and is adjusted for
+forward-looking estimates. At every reporting date, the
+historical observed default rates are updated and changes
+in the forward-looking estimates are analysed.
+CORPORATE OVERVIEW 01-07
+196 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+I.
+accrue. Initial direct costs incurred in negotiating and
+arranging an operating lease are added to the carrying
+amount of the leased asset and recognised over the lease
+term on the same basis as rental income. Contingent rents
+are recognised as revenue in the period in which they are
+earned.
+Amounts due from lessees under finance leases are
+recorded as receivables at the Group's net investment in
+the leases. Finance lease income is allocated to accounting
+periods so as to reflect a constant periodic rate of return
+on the Group's net investment outstanding in respect of
+the leases.
+Inventories
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade and finished
+goods are measured at the lower of cost and net realisable
+value. The cost of all categories of inventories is based on
+the weighted average method. Cost of raw materials and
+packing materials and stock-in-trade comprises cost of
+purchases. Cost of work-in-progress and finished goods
+comprises direct material, direct labour and an appropriate
+proportion of variable and fixed overhead expenditure,
+the latter being allocated on the basis of normal operating
+capacity. Cost of inventories also include all other costs
+incurred in bringing the inventories to their present
+location and condition.
+Net realisable value is the estimated selling price in the
+ordinary course of business, less the estimated costs of
+completion and costs necessary to make the sale.
+m. Cash and cash equivalents
+Cash and cash equivalent in the balance sheet comprise
+cash at banks and on hand and short-term deposits with
+an original maturity of three months or less, which are
+subject to an insignificant risk of changes in value.
+Rental income from operating lease is generally recognised
+on a straight-line basis over the term of the relevant lease.
+Where the rentals are structured solely to increase in
+line with expected general inflation to compensate for
+the Group's expected inflationary cost increases, such
+increases are recognised in the year in which such benefits
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Group as a lessor
+Finance leases are capitalised at the commencement of
+the lease at the inception date fair value of the leased
+property or, if lower, at the present value of the minimum
+lease payments. The corresponding liability to the lessor
+is included in the consolidated balance sheet as a finance
+lease obligation. Lease payments are apportioned between
+finance charges and reduction of the lease liability so as
+to achieve a constant rate of interest on the remaining
+balance of the liability. Finance charges are recognised
+in profit or loss as finance costs, unless they are directly
+attributable to qualifying assets, in which case they are
+capitalised in accordance with the Group's general policy
+on the borrowing costs. Contingent rentals are recognised
+as expenses in the periods in which they are incurred.
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+(ii) Cash flow hedges
+The effective portion of changes in the fair value
+of the hedging instrument is recognised in OCI in
+the cash flow hedge reserve, while any ineffective
+portion is recognised immediately in profit or loss.
+The Group uses forward currency contracts as hedges
+of its exposure to foreign currency risk in forecast
+transactions and firm commitments. Amounts
+recognised as OCI are transferred to profit or loss
+when the hedged transaction affects profit or loss,
+such as when a forecast sale occurs. When the
+hedged item is the cost of a non-financial asset or
+non-financial liability, the amounts recognised as OCI
+are transferred to the initial carrying amount of the
+non-financial asset or liability.
+If the hedging instrument expires or is sold, terminated
+or exercised or if its designation as a hedge is revoked,
+or when the hedge no longer meets the criteria for
+hedge accounting, any cumulative gain or loss previously
+recognised in OCI remains separately in equity until the
+forecast transaction occurs or the foreign currency firm
+commitment is met. When a forecast transaction is no
+longer expected to occur, the gain or loss accumulated in
+equity is recognised immediately in profit or loss.
+Treasury shares
+The Group has created an Employee Benefit Trust (EBT)
+for providing share-based payment to its employees. The
+Group uses EBT as a vehicle for distributing shares to
+employees under the employee remuneration schemes.
+The Group treats EBT as its extension and shares held by
+EBT are treated as treasury shares.
+Own equity instruments that are reacquired (treasury
+shares) are deducted from equity. No gain or loss is
+recognised in profit or loss on the purchase, sale, issue
+or cancellation of the Group's own equity instruments.
+Consideration paid or received shall be recognised directly
+in equity.
+Dividend distribution to equity holders of the parent
+The Parent Company recognises a liability to make
+dividend distributions to equity holders of the parent
+k.
+when the distribution is authorised and the distribution
+is no longer at the discretion of the Parent Company. As
+per the corporate laws in India, a distribution is authorised
+when it is approved by the shareholders. A corresponding
+amount is recognised directly in equity.
+Leases
+A lease that transfers substantially all the risks and
+rewards incidental to ownership to the lessee is classified
+as a finance lease. All other leases are classified as
+operating leases.
+Group as a lessee
+Operating lease payments are generally recognised as
+an expense in the profit or loss on a straight-line basis
+over the lease term. Where the rentals are structured
+solely to increase in line with expected general inflation
+to compensate for the lessor's expected inflationary cost
+increases, such increases are recognised in the year in
+which such benefits accrue. Contingent rentals arising
+under operating leases are also recognised as expenses in
+the periods in which they are incurred.
+PHARMA
+n.
+Restructuring
+Revenue from sale of goods is recognised when the
+significant risks and rewards of ownership have been
+transferred to the buyer, usually on delivery of goods, it is
+probable that the economic benefit will flow to the Group,
+the associated costs and possible return of goods can be
+estimated reliably, there is neither continuing management
+involvement to the degree usually associated with
+ownership nor effective control over the goods sold and
+the amount of revenue can be measured reliably.
+Provisions for chargeback, rebates, discounts and medicaid
+payments are estimated and provided for in the year of
+sales and recorded as reduction of revenue.
+Sales Returns
+The Company accounts for sales returns accrual by
+recording an allowance for sales returns concurrent
+with the recognition of revenue at the time of a product
+sale. This allowance is based on the Company's estimate
+of expected sales returns. With respect to established
+products, the Company considers its historical experience
+of sales returns, levels of inventory in the distribution
+channel, estimated shelf life, product discontinuances,
+price changes of competitive products, and the
+introduction of competitive new products, to the extent
+each of these factors impact the Company's business
+and markets. With respect to new products introduced
+by the Company, such products have historically been
+either extensions of an existing line of product where
+the Company has historical experience or in therapeutic
+categories where established products exist and are sold
+either by the Company or the Company's competitors.
+p.
+Rendering of Services
+Revenue from services rendered is recognised in the
+consolidated statement profit and loss as the underlying
+services are performed. Upfront non-refundable payments
+received are deferred and recognised as revenue over
+the expected period over which the related services are
+expected to be performed.
+Royalties
+Royalty revenue is recognised on an accrual basis in
+accordance with the substance of the relevant agreement
+(provided that it is probable that economic benefits will
+flow to the Group and the amount of revenue can be
+measured reliably). Royalty arrangements that are based
+on production, sales and other measures are recognised by
+reference to the underlying arrangement.
+Dividend and interest income
+Dividend income is recognised when the Group's right
+to receive the payment is established, which is generally
+when shareholders approve the dividend.
+Interest income from a financial asset is recognised when
+it is probable that the economic benefits will flow to
+the Group and the amount of income can be measured
+reliably. Interest income is accrued on a time basis, by
+reference to the principal outstanding and at the effective
+interest rate applicable, which is the rate that exactly
+discounts estimated future cash receipts through the
+expected life of the financial asset to that asset's net
+carrying amount on initial recognition.
+Government grants
+The Group recognises government grants only when there
+is reasonable assurance that the conditions attached
+to them will be complied with, and the grants will be
+received. When the grant relates to an expense item, it
+is recognised as income on a systematic basis over the
+periods that the related costs, for which it is intended
+to compensate, are expensed. When the grant relates
+to an asset, it is recognised as deferred revenue in the
+consolidated balance sheet and transferred to profit or
+loss on a systematic basis over the expected useful life of
+the related asset.
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Sale of goods
+Provisions, contingent liabilities and contingent assets
+Provisions are recognised when the Group has a present
+obligation (legal or constructive) as a result of past event,
+it is probable that an outflow of resources embodying
+economic benefits will be required to settle the obligation
+and a reliable estimate can be made of the amount of
+obligation. If the effect of the time value of money is
+material, provisions are determined by discounting the
+expected future cash flows at a pre-tax rate that reflects
+current market assessments of the time value of money
+and the risks specific to the liability. Where discounting is
+used, the increase in the provision due to the passage of
+time is recognised as a finance cost.
+Revenue from sale of goods include excise duty and is
+measured at the fair value of the consideration received
+or receivable. Revenue is net of returns, sales tax,
+chargebacks, rebates and other similar allowances.
+statements.
+A provision for restructuring is recognised when the Group
+has a detailed formal restructuring plan and has raised a
+valid expectation in those affected that it will carry out
+the restructuring by starting to implement the plan or
+announcing its main features to those affected by it. The
+measurement of a restructuring provision includes only the
+direct expenditure arising from the restructuring, which
+are those amounts that are both necessarily entailed by
+the restructuring and not associated with the ongoing
+activities of the entity.
+Onerous contracts
+Present obligations arising under onerous contracts are
+recognised and measured as provisions. An onerous
+contract is considered to exist where the Group has a
+contract under which the unavoidable costs of meeting
+the obligations under the contract exceed the economic
+benefit expected to be received from the contract.
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+(i)
+Possible obligations which will be confirmed only by
+future events not wholly within the control of the
+Company, or
+(ii) Present obligations arising from past events where it
+is not probable that an outflow of resources will be
+required to settle the obligation or a reliable estimate
+of the amount of the obligation cannot be made.
+ANNUAL REPORT 2016-17 197
+SUN
+PHARMA
+198
+O.
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Contingent Assets are not recognised in the financial
+Revenue
+SUN
+For the purpose of the consolidated statement of cash
+flows, cash and cash equivalents consist of cash and short-
+term deposits, as defined above, net of outstanding bank
+overdrafts as they are considered an integral part of the
+Group's cash management.
+of derivatives that qualify as fair value hedges are
+recognised in profit or loss immediately, together with
+any changes in the fair value of the hedged asset or
+liability that are attributable to the hedged risk.
+The Group follows 'simplified approach' for recognition
+of impairment loss allowance on trade receivables or any
+contractual right to receive cash or another financial asset.
+The application of simplified approach does not require
+the Group to track changes in credit risk. Rather, it
+recognises impairment loss allowance based on lifetime
+ECLs at each reporting date, right from its initial
+Financial liabilities and equity instruments
+Classification as debt or equity
+Debt and equity instruments issued by a Group entity
+are classified as either financial liabilities or as equity
+in accordance with the substance of the contractual
+arrangements and the definitions of a financial liability and
+an equity instrument.
+Equity instruments
+An equity instrument is any contract that evidences a
+residual interest in the assets of an entity after deducting
+all of its liabilities. Equity instruments issued by a Group
+entity are recognised at the proceeds received, net of
+direct issue costs.
+Repurchase of the Parent Company's own equity
+instruments is recognised and deducted directly in
+equity. No gain or loss is recognised in profit or loss on
+the purchase, sale, issue or cancellation of the Parent
+Company's own equity instruments.
+Compound financial instruments
+The component parts of compound financial instruments
+(convertible notes) issued by the Group are classified
+separately as financial liabilities and equity in accordance
+with the substance of the contractual arrangements
+and the definitions of a financial liability and an equity
+instrument.
+Initial recognition and measurement
+All financial liabilities are recognised initially at fair value
+and, in the case of loans and borrowings and payables, net
+of directly attributable transaction costs.
+Subsequent measurement
+All financial liabilities are subsequently measured at
+ANNUAL REPORT 2016-17
+193
+Financial guarantee contracts which are not measured
+as at FVTPL
+SUN
+Loan commitments which are not measured as at
+FVTPL
+Lease receivables under Ind AS 17
+ANNUAL REPORT 2016-17 195
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+transferred asset to the extent of the Group's continuing
+involvement. In that case, the Group also recognises
+an associated liability. The transferred asset and the
+associated liability are measured on a basis that reflects
+the rights and obligations that the Group has retained.
+On derecognition of a financial asset in its entirety, the
+difference between the asset's carrying amount and the
+sum of the consideration received and receivable and the
+cumulative gain or loss that had been recognised in OCI
+and accumulated in equity is recognised in profit or loss if
+such gain or loss would have otherwise been recognised in
+profit or loss on disposal of that financial asset.
+Impairment of financial assets
+In accordance with Ind AS 109, the Group applies
+expected credit loss (ECL) model for measurement and
+recognition of impairment loss on the following financial
+assets and credit risk exposure:
+a) Financial assets that are debt instruments, and are
+measured at amortised cost
+b)
+c)
+d)
+Financial assets that are debt instruments and are
+measured as at FVTOCI
+Trade receivables or any contractual right to receive
+cash or another financial asset
+PHARMA
+189
+FOR THE YEAR ENDED MARCH 31, 2017
+FOR THE YEAR ENDED MARCH 31, 2017
+Reclassification of financial assets
+The Group determines classification of financial assets and
+liabilities on initial recognition. After initial recognition,
+no reclassification is made for financial assets which are
+equity instruments and financial liabilities. For financial
+assets which are debt instruments, a reclassification is
+made only if there is a change in the business model
+for managing those assets. Changes to the business
+model are expected to be infrequent. The Group's senior
+management determines change in the business model
+as a result of external or internal changes which are
+significant to the Group's operations. Such changes are
+evident to external parties. A change in the business
+model occurs when the Group either begins or ceases to
+perform an activity that is significant to its operations.
+If the Group reclassifies financial assets, it applies the
+reclassification prospectively from the reclassification date
+which is the first day of the immediately next reporting
+period following the change in business model. The Group
+does not restate any previously recognised gains, losses
+(including impairment gains or losses) or interest.
+Derivative financial instruments and hedge accounting
+Initial recognition and subsequent measurement
+The Group uses derivative financial instruments, such as
+forward currency contracts, full currency swap, options
+and interest rate swaps to hedge its foreign currency
+risks and interest rate risks respectively. Such derivative
+financial instruments are initially recognised at fair value
+on the date on which a derivative contract is entered
+into and are subsequently re-measured at fair value at
+the end of each reporting period. Derivatives are carried
+as financial assets when the fair value is positive and as
+financial liabilities when the fair value is negative.
+Any gains or losses arising from changes in the fair value
+of derivatives are taken directly to profit or loss, except
+for the effective portion of cash flow hedges, which is
+recognised in OCI and later reclassified to profit or loss
+when the hedge item affects profit or loss or treated
+as basis adjustment if a hedged forecast transaction
+subsequently results in the recognition of a non-financial
+asset or non-financial liability.
+For the purpose of hedge accounting, hedges are classified
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+as:
+Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable to
+a particular risk associated with a recognised asset
+or liability or a highly probable forecast transaction
+or the foreign currency risk in an unrecognised firm
+commitment
+Hedges of a net investment in a foreign operation
+At the inception of a hedge relationship, the Group
+formally designates and documents the hedge relationship
+to which the Group wishes to apply hedge accounting
+and the risk management objective and strategy for
+undertaking the hedge. The documentation includes
+the Group's risk management objective and strategy for
+undertaking hedge, the hedging/economic relationship,
+the hedged item or transaction, the nature of the risk
+being hedged, hedge ratio and how the entity will assess
+the effectiveness of changes in the hedging instrument's
+fair value in offsetting the exposure to changes in the
+hedged item's fair value or cash flows attributable to
+the hedged risk. Such hedges are expected to be highly
+effective in achieving offsetting changes in fair value
+or cash flows and are assessed on an ongoing basis to
+determine that they actually have been highly effective
+throughout the financial reporting periods for which they
+were designated.
+Hedges that meet the strict criteria for hedge accounting
+are accounted for, as described below:
+(i)
+Fair value hedges
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+FINANCIAL STATEMENTS 80-278
+Changes in fair value of the designated portion
+STATUTORY REPORTS
+08-79
+amortised cost using the effective interest method or at
+FVTPL.
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL when
+the financial liability is either contingent consideration
+recognised by the Group as an acquirer in a business
+combination to which Ind AS 103 applies or is held for
+trading or is designated upon initial recognition as at
+fair value through profit or loss. Financial liabilities are
+classified as held for trading if they are incurred principally
+for the purpose of repurchasing in the near term or on
+initial recognition it is part of a portfolio of identified
+financial instruments that the Group manages together
+and has a recent actual pattern of short-term profit-taking.
+This category also includes derivative entered into by the
+Group that are not designated and effective as hedging
+instruments in hedge relationships as defined by Ind AS
+109. Gains or losses on liabilities held for trading are
+recognised in the profit or loss.
+Financial liabilities designated upon initial recognition at
+fair value through profit or loss are designated as such at
+the initial date of recognition, and only if the criteria in Ind
+AS 109 are satisfied. For non-held-for-trading financial
+liabilities designated as at FVTPL, fair value gains/losses
+attributable to changes in own credit risk are recognised
+in OCI, unless the recognition of the effects of changes in
+the liability's credit risk in OCI would create or enlarge an
+accounting mismatch in profit or loss, in which case these
+effects of changes in credit risk are recognised in profit or
+loss. These gains/loss are not subsequently transferred to
+profit or loss. All other changes in fair value of such liability
+are recognised in the consolidated statement of profit or
+loss.
+Financial liabilities subsequently measured at amortised cost
+Financial liabilities that are not held-for-trading and are
+not designated as at FVTPL are measured at amortised
+cost in subsequent accounting periods. The carrying
+amounts of financial liabilities that are subsequently
+measured at amortised cost are determined based on the
+effective interest rate (EIR) method. Interest expense that
+is not capitalised as part of costs of an asset is included in
+the 'Finance costs' line item in the profit or loss.
+loss.
+Financial guarantee contracts
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using the
+EIR method. Amortised cost is calculated by taking into
+account any discount or premium on acquisition and
+fees or costs that are an integral part of the EIR. The EIR
+amortisation is included as finance costs in the profit or
+Derecognition
+A financial liability is derecognised when the obligation
+under the liability is discharged or cancelled or expires.
+When an existing financial liability is replaced by another
+from the same lender on substantially different terms, or
+the terms of an existing liability are substantially modified,
+such an exchange or modification is treated as the
+derecognition of the original liability and the recognition
+of a new liability. The difference between the carrying
+amount of the financial liability derecognised and the
+consideration paid and payable is recognised in profit or
+loss.
+Embedded derivatives
+Derivatives embedded in non-derivative host contracts
+that are not financial assets within the scope of Ind AS 109
+are accounted for as separate derivatives and recorded
+at fair value if their economic characteristics and risks are
+not closely related to those of the host contracts and the
+host contracts are not held for trading or designated at fair
+value though profit or loss. These embedded derivatives
+are measured at fair value with changes in fair value
+recognised in profit or loss, unless designated as effective
+hedging instruments.
+194 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+Financial guarantee contracts are those contracts that
+require a payment to be made to reimburse the holder for
+a loss it incurs because the specified debtor fails to make a
+payment when due in accordance with the terms of a debt
+instrument. Financial guarantee contracts are recognised
+initially as a liability at fair value and if not designated as
+at FVTPL, are subsequently measured at the higher of the
+amount of loss allowance determined as per impairment
+requirements of Ind AS 109 and the amount initially
+recognised less cumulative amount of income recognised.
+(As at March 31, 2016: ₹ 29,829)]
+Silverstreet Development LLP [28,317
+(0.5)
+0.0
+(0.5)
+0.0
+(0.5)
+Reanal Finomvegyszergyar Zrt. (Reanal Ltd)
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+170.6
+161.0
+Less: Impairment in value of investment
+(167.0)
+(163.8)
+204
+CORPORATE OVERVIEW 01-07
+167.0
+Less: Impairment in value of investment
+Biotech Consortium India Limited
+(934.0)
+0.5
+1.4 140,625
+STATUTORY REPORTS
+1.4
+Shares of 10 each fully paid
+Shimal Research Laboratories Limited
+9,340,000
+934.0 9,340,000
+Shares of 10 each fully paid
+934.0 9,340,000
+Shares of 10 each fully paid
+Less: Impairment in value of investment
+50,000
+(934.0)
+0.5
+50,000
+(934.0)
+0.5
+50,000
+934.0
+08-79
+27,400,000
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+27.5
+100,000,000 103.7
+200,000,000
+214.8
+150,000,000
+159.7
+296.8
+280.0
+National Savings Certificates [* 10,000
+0.0
+0.0
+0.0
+(March 31, 2016: ₹10,000, April 01, 2015: 10,000)]
+In debentures/bonds
+Quoted
+250
+27,400,000
+FINANCIAL STATEMENTS 80-278
+27.3
+27.1
+FOR THE YEAR ENDED MARCH 31, 2017
+Enceladus Pharmaceuticals BV, Netherlands
+In government securities
+Quoted
+Government of Rajasthan UDAY non -SLR bond
+7.75% Bond of ₹ 1 each fully paid maturing June 23, 2018
+Government of Rajasthan UDAY non -SLR bond
+7.86% Bond of ₹ 1 each fully paid maturing June 23, 2019
+Government of Rajasthan UDAY non -SLR bond
+8.01% Bond of ₹ 1 each fully paid maturing June 23, 2020
+Government of Rajasthan UDAY non -SLR bond
+8.21% Bond of 1 each fully paid maturing June 23, 2025
+Government of Rajasthan UDAY non -SLR bond
+8.39% Bond of 1 each fully paid maturing June 23, 2026
+Government of Uttar Pradesh UDAY non-SLR bond
+8.21% Bond of ₹ 1 each fully paid maturing June 23, 2026
+Unquoted
+As at
+March 31, 2017
+As at
+March 31, 2016
+Quantity Amount Quantity Amount
+As at
+in Million
+April 01, 2015
+Quantity Amount
+290.6
+27,400,000
+9.9% Non-convertible Debentures of 1,000,000 each fully
+paid of Housing Development Finance Corporation Ltd maturing
+on December 23, 2018
+OTHER INTANGIBLE ASSETS
+140,625
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+257.8
+250
+262.2
+8.2% Bonds of 1,000 each fully paid of National Highways
+Authority of India maturing on January 25, 2022
+8.2% Bonds of 1,000 each fully paid of Power Finance
+Corporation Ltd (Series I) maturing on February 1, 2022
+8/8.15% Bonds of 1,000 each fully paid of Indian Railway
+Finance Corporation Ltd maturing on February 23, 2022
+9.55% Debentures of 1,000,000 each fully paid of Canara
+Bank (Perpetual Bonds) maturing on March 5, 2025
+10.75% Bonds of 1,000,000 each fully paid of IDBI Bank Ltd
+- OMNI (2014-15-Series II) Tier I Perpetual Bonds maturing on
+October 17, 2024
+Unquoted
+0% Optionally Fully Convertible Debentures of 100 each fully
+paid of Sun Speciality Chemicals Pvt Ltd
+Other investments
+Unquoted
+Frazier Healthcare LS VIII
+5AM Ventures IV, L.P.
+Atlas Venture Fund
+61,809
+66.7
+61,809
+65.3
+61,809
+63.6
+142,393
+153.6 142,393
+150.4
+142,393
+08-79 FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+q. Employee benefits
+Minimum Alternate Tax ('MAT') credit is recognised as
+deferred tax asset only when and to the extent there is
+convincing evidence that the Company will pay normal
+income tax during the period for which the MAT credit
+can be carried forward for set-off against the normal tax
+liability. MAT credit recognised as an asset is reviewed at
+each Balance Sheet date and written down to the extent
+the aforesaid convincing evidence no longer exists.
+A deferred tax asset is recognised to the extent that it
+is probable that future taxable profits will be available
+against which the temporary difference can be utilised.
+Deferred tax assets are reviewed at each reporting date
+and are reduced to the extent that it is no longer probable
+that the related tax benefit will be realised. Withholding
+tax arising out of payment of dividends to shareholders
+under the Indian Income tax regulations is not considered
+as tax expense for the Company and all such taxes are
+recognised in the statement of changes in equity as part of
+the associated dividend payment.
+Deferred tax is measured at the tax rates that are
+expected to be applied to the temporary differences when
+they reverse, based on the laws that have been enacted or
+substantively enacted by the end of the reporting period.
+Deferred tax assets and liabilities are offset if there is a
+legally enforceable right to set off corresponding current
+tax assets against current tax liabilities and the deferred
+tax assets and deferred tax liabilities relate to income
+taxes levied by the same tax authority on the Company.
+Deferred tax is recognised on temporary differences
+between the carrying amounts of assets and liabilities
+in the consolidated financial statements and the
+corresponding tax bases used in the computation of
+taxable profit. Deferred tax is not recognised for the
+temporary differences that arise on the initial recognition
+of assets or liabilities in a transaction that is not a business
+combination and that affects neither accounting nor
+taxable profits and taxable temporary differences arising
+upon the initial recognition of goodwill.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 199
+Income tax expense consists of current and deferred tax.
+Income tax expense is recognised in profit or loss except
+to the extent that it relates to items recognised in OCI or
+directly in equity, in which case it is recognised in OCI or
+directly in equity respectively. Current tax is the expected
+tax payable on the taxable profit for the year, using tax
+rates enacted or substantively enacted by the end of
+the reporting period, and any adjustment to tax payable
+in respect of previous years. Current tax assets and tax
+liabilities are offset where the Company has a legally
+enforceable right to offset and intends either to settle on
+a net basis, or to realise the asset and settle the liability
+simultaneously.
+Income tax
+146.6
+For cash-settled share-based payments, a liability is
+recognised for the goods or services acquired, measured
+initially at the fair value of the liability. At the end of each
+reporting period until the liability is settled, and at the date
+of settlement, the fair value of the liability is remeasured,
+with any changes in fair value recognised in profit or loss
+for the year.
+Share-based payment arrangements
+The Group's contributions to defined contribution plans
+are recognised as an expense as and when the services
+are received from the employees entitling them to the
+contributions.
+Defined contribution plans
+current and previous periods. That benefit is discounted to
+determine its present value.
+r.
+The Group's net obligation in respect of other long term
+employee benefits is the amount of future benefit that
+employees have earned in return for their service in the
+Short-term and Other long-term employee benefits
+A liability is recognised for benefits accruing to employees
+in respect of wages and salaries, and casual leave in the
+period the related service is rendered at the undiscounted
+amount of the benefits expected to be paid in exchange
+for that service.
+Termination benefits are recognised as an expense at the
+earlier of the date when the Group can no longer withdraw
+the offer of those benefits and when the entity recognises
+costs for a restructuring that is within the scope of Ind AS
+37 and involves the payment of termination benefits.
+Termination benefits
+The liability in respect of defined benefit plans is calculated
+using the projected unit credit method with actuarial
+valuations being carried out at the end of each annual
+reporting period. The present value of the defined benefit
+obligation is determined by discounting the estimated
+future cash outflows by reference to market yields at
+the end of the reporting period on government bonds.
+The currency and term of the government bonds shall be
+consistent with the currency and estimated term of the
+post-employment benefit obligations. The current service
+cost of the defined benefit plan, recognised in the profit or
+loss as employee benefits expense, reflects the increase
+in the defined benefit obligation resulting from employee
+service in the current year, benefit changes, curtailments
+and settlements. Past service costs are recognised in profit
+or loss in the period of a plan amendment. The net interest
+cost is calculated by applying the discount rate to the net
+balance of the defined benefit obligation and the fair value
+of plan assets. This cost is included in employee benefit
+expense in profit or loss. Actuarial gains and losses arising
+from experience adjustments and changes in actuarial
+assumptions are charged or credited to OCI in the period
+in which they arise and is reflected immediately in retained
+earnings and is not reclassified to profit or loss.
+Defined benefit plans
+The grant date fair value of options granted to
+employees is recognised as an employee expense, with a
+corresponding increase in equity, on a straight line basis,
+over the vesting period, based on the Group's estimate
+of equity instruments that will eventually vest. At the end
+of each reporting period, the Group revises its estimate
+of the number of equity instruments expected to vest.
+The impact of the revision of the original estimates,
+if any, is recognised in profit or loss such that the
+cumulative expense reflects the revised estimate, with a
+corresponding adjustment to the equity-settled employee
+benefits reserve.
+163,131
+175.1 163,131
+170.9
+1,101.5
+1,098.3
+934.5
+ANNUAL REPORT 2016-17
+205
+SUN
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 7
+LOANS (NON-CURRENT)
+1,530.2
+Receivable on account of assets given under finance lease - secured,
+Loans to employees/others
+Secured, considered good
+Unsecured, considered good
+Doubtful
+Less: Allowance for bad and doubtful loans
+Note 8
+OTHER FINANCIAL ASSETS (NON-CURRENT)
+As at
+March 31, 2017
+As at
+March 31, 2016
+378.7
+considered good (Refer note 55)
+S.
+1,748.4
+10,176.4
+163,131
+166.4
+500.0
+499.7
+500.0
+536.5
+1,156,500
+106.0 1,156,500
+97.1
+96.2
+3.3
+2,003.2
+307.3
+184.9
+49.7
+55.0
+4,575.1
+7,496.9
+10,772.1
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+Aggregate amount of unquoted investments before impairment
+Aggregate amount of impairment in value of investments
+3,673.4
+6,846.8
+10,176.4
+3,673.4
+6,846.8
+205.0
+t.
+Earnings per share
+The Parent Company presents basic and diluted earnings
+per share ("EPS") data for its equity shares. Basic EPS
+is calculated by dividing the profit or loss attributable
+to equity shareholders of the Parent Company by the
+weighted average number of equity shares outstanding
+during the period. Diluted EPS is determined by adjusting
+the profit or loss attributable to equity shareholders and
+the weighted average number of equity shares outstanding
+for the effects of all dilutive potential ordinary shares,
+which includes all stock options granted to employees.
+734.6
+4,486.7
+76.7
+Additions
+acquisition ^
+2,597.9
+0.1
+11.3
+24.2
+2,019.7
+30.0
+66.4
+429.1
+Taken over on
+Adjustments
+31.9 3,706.1
+(4.3)
+1,062.4 103,617.3
+0.6 1,135.5
+2,796.0
+101.7
+39.9
+1.2
+1,983.1
+11.3
+12.5
+83.5
+78.6
+9,465.6
+154.6
+Adjustments
+(43.6) (2,294.8)
+1,300.0 123,032.5
+0.6 1,138.7
+(0.2) (48.9)
+(26.9) (2,427.0)
+(158.4)
+(19.4) (111.2)
+21.7 3,131.8
+(0.9) (98.7)
+(1,317.6)
+69,154.9
+(1,193.8)
+(7.7)
+(5.4)
+(34.2)
+321.1
+(48.2) (739.6)
+Consolidation
+216.8
+253.9
+1,894.4 42,048.6 1,601.6
+2,269.5
+As at March 31, 2016
+(0.9)
+(731.6)
+(61.0)
+Disposals
+232.5 15,538.2
+(73.6)
+* in Million
+As at
+1,351.4
+71.8
+Plant and Plant and Furniture
+Leasehold Buildings
+improvement
+taken
+Leasehold Buildings Buildings
+land
+Freehold
+land
+* in Million
+At cost/deemed cost
+Following are the changes in the carrying value of property, plant and equipment
+PROPERTY, PLANT AND EQUIPMENT
+Note 3a
+FOR THE YEAR ENDED MARCH 31, 2017
+Furniture
+FINANCIAL STATEMENTS
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+200
+The Company is evaluating the requirements of the
+amendment and the effect on the financial statements is
+being evaluated.
+The amendments to Ind AS 7 requires the entities
+to provide disclosures that enable users of financial
+statements to evaluate changes in liabilities arising from
+financing activities, including both changes arising from
+cash flows and non-cash changes, suggesting inclusion of
+a reconciliation between the opening and closing balances
+in the Balance Sheet for liabilities arising from financing
+activities, to meet the disclosure requirement.
+In March 2017, the Ministry of Corporate Affairs
+issued the Companies (Indian Accounting Standards)
+(Amendments) Rules, 2017, notifying amendment to
+Ind AS 7, 'Statement of cash flows'. This amendment is
+in accordance with the recent amendments made by
+International Accounting Standards Board (IASB) to IAS 7,
+'Statement of cash flows'. The amendment is applicable to
+the Company from April 01, 2017.
+Standards issued but not yet effective
+Recent Accounting pronouncements
+The number of equity shares and potentially dilutive
+equity shares are adjusted retrospectively for all periods
+presented for any share splits and bonus shares issues
+including for changes effected prior to the approval of the
+financial statements by the Board of Directors.
+NOTES TO THE CONSOLIDATED
+66.9
+Vehicles
+under
+Consolidation
+205.5 57,004.1
+175.9
+758.4
+36,513.0
+1,827.5
+2,098.5
+As at April 01, 2015
+operating
+lease
+lease *
+under
+given equipment equipment
+operating
+lease*
+given
+Total
+Office
+equipment
+and
+fixtures
+and
+fixtures
+given
+under
+operating
+finance
+under
+on building
+lease *
+April 01, 2015
+389.3
+20.4
+677.7
+9.7% 250 Secured Non Convertible Redeemable
+Debentures of Housing Development Finance
+Corporation Ltd of 1,000,000 maturing on December
+23, 2018
+I Shares New York Amt Free Muni
+SPDR Ser TR Barclays Long
+Investment in bonds (Various small value investments)
+In Mutual funds*
+Unquoted
+Unit of 10 each fully paid
+As at
+March 31, 2017
+As at
+0% 750 Debentures of IDFC of 1,000,000 maturing on
+April 9, 2015
+As at
+Quantity
+Amount
+April 01, 2015
+Amount
+Quantity
+Amount
+22,316
+14.2
+14,659
+9.1
+3.8
+* in Million
+750
+Quoted
+FS INVT CORP COM
+1,350.9
+940.7
+772.4
+3.2
+2.4
+1.3
+1,354.1
+68,328.1
+943.1
+773.7
+64,225.4
+56,668.9
+In bonds/debentures
+(i) Inventory write downs are accounted, considering the nature of inventory, ageing, liquidation plan and net realisable value. Write downs of inventories
+amounted to 9,174.9 Million (March 31, 2016: 8,253.8 Million; April 01, 2015: 7,482.6 Million). The changes in write downs are recognised as an expense
+in the consolidated statement of profit and loss.
+(iii) The cost of inventories recognised as an expense is disclosed in Notes 33, 34 and 37 and as purchases of stock-in-trade in the consolidated statement of profit
+and loss.
+ANNUAL REPORT 2016-17 207
+SUN
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 12
+INVESTMENTS (CURRENT)
+(Fully paid up)
+Quoted
+In equity instruments
+(ii) For details of inventories pledged as security refer note 69.
+5,466.7
+743.6
+252.5
+20,000,000
+218.5
+40,000,000
+434.5
+20,000,000
+216.0
+15,000,000
+161.5
+20,000,000
+214.2
+30,000,000
+275.3
+325.9
+Kotak Mutual Fund-Kotak FMP
+35,000,000
+385.5
+Series 145 Direct-Growth
+Kotak Mutual Fund - Kotak FMP
+Series 155 Direct-Growth
+25,000,000
+273.0
+208
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+250
+Series 74-369 Days Plan B Direct Plan Cumulative
+250
+25,000,000
+18,416,715
+6,032
+43.1
+2.0
+3,863
+28.8
+3,066
+21.5
+170.8
+1.9
+197.0
+1.9
+188.9
+DHFL Pramercia - Insta Cash Plus Fund - Direct Plan - Growth
+213.0
+14,561
+181,124
+35.7
+JP Morgan India -Liquid Fund - Growth Plan
+DSP Merrill Lynch Mutual Fund - DSP BlackRock FMP
+-Series 161-12M-Dir-Growth
+2,671,655
+20,000,000
+48.5
+217.9
+Deutsche Mutual Fund-DWS Fixed Maturity Plan Series
+63-Regular Plan-Growth
+15,000,000
+163.7
+Deutsche Mutual Fund - DWS Interval Fund - Annual
+Plan Series 1 Direct - Growth
+ICICI Prudential Mutual Fund-ICICI Prudential FMP
+Series 73-391 Days Plan G Direct Plan Cumulative
+ICICI Prudential Mutual Fund - ICICI Prudential FMP
+Series 73-369 Days Plan T Direct Plan Cumulative
+ICICI Prudential Mutual Fund - ICICI Prudential FMP
+Series 74-367 Days Plan D Direct Plan Cumulative
+ICICI Prudential Mutual Fund - ICICI Prudential FMP
+Series 74-368 Days Plan J Direct Plan Cumulative
+ICICI Prudential Mutual Fund - ICICI Prudential FMP
+Series 74 - 369 Days Plan K Direct Plan Cumulative
+ICICI Prudential Mutual Fund - ICICI Prudential FMP
+Series 74-370 Days Plan S Direct Plan Cumulative
+ICICI Prudential Mutual Fund - ICICI Prudential FMP
+3.1
+Taken over on
+283.2
+4,709.0
+706.2*
+6,452.2
+1,442.2
+345.5*
+9,809.9
+1,011.5
+81.8
+1,583.4
+* includes receivable towards sale of manufacturing facility
+Note 9
+INCOME TAX ASSET (NET) [NON-CURRENT]
+Advance income tax (net of provisions)
+206
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+As at
+Others
+March 31, 2017
+31,250.1
+31,250.1
+15,726.2
+* in Million
+As at
+April 01, 2015
+11,238.8
+11,238.8
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 10
+As at
+March 31, 2016
+15,726.2
+OTHER NON-CURRENT ASSETS
+627.7
+67.1
+694.5
+40.3
+1,400.5
+0.8
+2.7
+1.9
+(0.8)
+(2.7)
+(1.9)
+698.1
+1,073.2
+1,830.1
+Derivatives not designated as hedges
+As at
+As at
+March 31, 2016
+in Million
+As at
+April 01, 2015
+4,589.2
+7,631.4
+Bank deposits with more than 12 months maturity
+Interest accrued on investment
+Security deposits
+462.0
+390.8
+48.9
+441.2
+Derivatives designated and effective in hedge accounting relationships
+March 31, 2017
+305.7
+5,706.4
+Capital advances
+Balances with government authorities
+Advance for supply of goods and services
+Other assets
+Stores, spares and other materials
+Goods in transit
+in Million
+As at
+As at
+March 31, 2016
+As at
+April 01, 2015
+21,212.3
+598.7
+19,428.8
+1,067.0
+18,159.7
+604.0
+March 31, 2017
+21,811.0
+18,763.7
+15,467.2
+13,003.5
+12,228.6
+24,986.8
+24,076.6
+19,436.2
+4,614.3
+5,400.7
+5,183.5
+94.7
+20,495.8
+Prepaid expenses
+Goods in transit
+Finished Goods
+Note 11
+INVENTORIES
+As at
+As at
+* in Million
+As at
+March 31, 2017
+3,971.7
+91.1
+March 31, 2016
+4,181.3
+87.6
+2,058.5
+1,080.0
+722.8
+17.7
+Stock-in-trade
+6,861.8
+777.2
+26.7
+April 01, 2015
+3,770.5
+47.0
+1,382.8
+698.1
+35.8
+5,934.2
+Lower of cost and net realisable value
+Raw materials and packing materials
+Goods in transit
+Work-in-Progress
+6,152.8
+524.1
+1,566.4
+2,001.4
+304.4
+733.0
+1,436.9
+Versant Venture Capital V, L.P.
+Fraizer Healthcare VII, L.P.
+794.4
+1,249.4
+440.4
+1,999
+206,670
+1,302.8
+444.5
+1,999
+206,670
+1,110.2
+951.4
+1,999
+April 01, 2015
+* in Million
+As at
+March 31, 2016
+Quantity Amount
+Amount
+As at
+As at
+March 31, 2017
+Quantity
+Investments in limited partnership
+scPharmaceuticals Inc.
+Ordinary Shares of Baht 100 each fully paid
+Daiichi Sankyo (Thailand) Limited
+Quantity Amount
+Medinstill LLC
+528.5
+Investments in limited liability partnership
+4,605.4
+Aggregate carrying value of unquoted investments
+2,175.7
+3,008.8
+4,605.4
+(2,463.5)
+(2,463.5)
+(2,463.5)
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+2,463.5
+181.5
+2,463.5 16,127,293
+16,128,078
+Zenotech Laboratories Limited *
+(At cost, less impairment in value of investments)
+Investments in equity instruments
+Quoted, fully paid
+[28,760 (As at March 31, 2016: ₹ 28,760)]
+0.0
+0.0
+312.5
+Generic Solar Power LLP
+Trumpcard Advisors & Finvest LLP
+2,463.5 16,128,078
+3,008.8
+Investments in equity instruments
+(carrying amount determined using equity method of accounting)
+Carrying amount
+As at March 31, 2017
+18,871.2
+17,958.9
+912.3
+(542.8)
+(527.7)
+(15.1)
+Eliminated on disposals of assets
+4,125.4
+3,887.8
+As at April 01, 2015
+237.6
+(579.8)
+(12.1)
+Amortisation expense
+Consolidation Adjustments
+15,880.5
+15,178.6
+701.9
+As at March 31, 2016
+(80.0)
+(76.8)
+(3.2)
+(591.9)
+Unquoted, fully paid
+As at March 31, 2016
+798.8
+INVESTMENTS IN ASSOCIATES (NON-CURRENT)
+Note 4
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+202
+^ Refer Note 78
+As at March 31, 2017
+* Refer Note 55
+(e) Deletions / Adjustments during the previous year includes refund received from authorities in respect of dismantling charges.
+(c) Freehold land includes land valued at 25.5 Million (Previous Year 25.5 Million) pending registration in the name of the Parent Company.
+(d) Excludes Fixed Assets Held for Sale (Refer Note 73).
+(a) Buildings include 8,620 (As at March 31, 2016: 8,620 ; As at April 01, 2015: 8,620) towards cost of shares in a co-operative housing society.
+(b) Impairment losses for the year ended March 31, 2016 includes 39.8 Million is utilised from Revaluation Reserve.
+Footnotes:
+36,436.6
+35,933.3
+503.3
+6,461.3
+26,543.7
+25,887.2
+656.5
+5,662.5
+(f) Borrowing cost capitalised during the year 110.3 Million (Previous Year 162.1 Million)
+Eliminated on disposals of assets
+2,175.7
+2,463.5
+408
+3.5
+408
+Perrigo Company plc
+Shares of 10 each fully paid
+93.5
+112.3 1,050,000
+105.1 1,050,000
+1,050,000
+Krebs Biochemicals and Industries Limited
+Shares of USD 0.01 each fully paid
+4.3
+6,086.3 2,868,623 8,403.3
+2,868,623
+Impax Laboratories Inc.,
+Quoted
+In equity instruments
+As at
+April 01, 2015
+Amount Quantity Amount Quantity Amount
+March 31, 2016
+As at
+* in Million
+As at
+March 31, 2017
+Quantity
+418.0
+655.0
+2,353.4 2,868,623
+429.5
+Teva Pharmaceutical Industries Ltd
+0.3
+Nimbua Greenfield (Punjab) Limited
+Shares of 10 each fully paid
+0.2
+0.2 20,000
+20,000
+0.2
+20,000
+Shivalik Solid Waste Management Limited
+Shares of 10 each fully paid
+1.0
+100,000
+80
+1.0
+1.0
+100,000
+Enviro Infrastructure Co. Limited
+Unquoted
+0.0
+20
+0.0
+20
+Rekah Pharmaceutical Industries Ltd
+0.3
+80
+100,000
+Aggregate book value (carrying value) of quoted
+418.0
+429.5
+S&I Ophthalmic LLC
+MSD-Sun, LLC
+Investments in equity instruments
+Unquoted, fully paid
+INVESTMENTS IN JOINT VENTURES (NON-CURRENT)
+(carrying amount determined using equity method of accounting)
+Note 5
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+203
+Artes Biotechnology GmbH
+ANNUAL REPORT 2016-17
+investments in associate
+2,463.5
+729.8
+2,463.5
+541.9
+570.1
+2,463.5
+Aggregate amount of impairment in value of
+Market value of quoted investment
+investments
+2,463.5
+2,463.5
+* The shares of this entity are thinly traded and therefore, market price has not been considered for the purpose of assessment of impairment in the value of its
+non-current investment.
+655.0
+Aggregate carrying value of unquoted investments
+NON-CURRENT FINANCIAL INVESTMENTS
+240.5
+15,853
+270.9
+15,853
+244.9
+15,853
+176.8
+383.4
+183.9
+0.7
+10,564
+Note 6
+0.7
+0.7
+10,564
+Amount
+Quantity
+Amount
+April 01, 2015
+As at
+As at
+March 31, 2016
+Quantity
+Amount
+As at
+March 31, 2017
+Quantity
+in Million
+10,564
+1.4 140,625
+included in exceptional items)
+64.5
+(53.1)
+(1.2) (106.0)
+(921.7)
+(0.4)
+(557.0)
+Eliminated on
+and loss
+statement of profit
+consolidated
+recognised in
+4,953.3
+(18.6)
+8,570.6
+208.4
+3.3
+309.0
+16.3
+1,982.5
+2,921.8
+23.5
+Impairment losses
+3.1
+6,338.5
+0.5
+15.2
+78.1
+217.6
+5.9
+23.6 1,376.6
+(1,658.0)
+As at March 31, 2016
+97.4
+33.1
+3.6
+83.5
+23.9 1,295.8
+13.2
+Impairment losses
+Depreciation expense
+Adjustments
+683.4 47,201.1
+(30.6) (1,097.9)
+0.6 521.1
+(0.2) (38.1)
+1,824.9
+(54.6)
+disposals of assets
+20.3
+(0.9)
+(1.9)
+(0.9)
+(21.5)
+31,891.9
+36.9
+38.3
+870.4
+215.9 11,073.0
+(16.9) (210.9)
+(1.9)
+Consolidation
+24.4
+(719.5)
+6,309.5
+93.0
+Depreciation expense
+1,718.6
+(232.8)
+(227.7)
+(4,922.1)
+75,542.9
+303.4
+248.5
+1,846.2 45,303.7 1,567.4
+2,902.9
+As at March 31, 2017
+(2,124.9)
+(220.7)
+Disposals
+(18.4) (7,746.6)
+452.4 16,847.6
+652.4
+10,502.5
+94.3
+4,553.2
+403.6
+Additions
+acquisition ^
+4,155.5
+6.9
+28.5
+28.2
+189.2
+Adjustments
+20.8
+0.4
+33,616.6
+452.0
+26.5
+354.0
+8.5
+80.3
+0.6
+1,525.3
+17.3
+1.1
+1,086.4
+2.1
+1.3
+45.9
+3,486.0
+23,406.2
+22.2
+746.4
+180.7 6,877.6
+11.6 454.0
+0.9
+Consolidation
+As at April 01, 2015
+impairment
+depreciation and
+Accumulated
+1,697.3 133,994.2
+1,074.7
+34.3
+67.6
+0.8
+189.4
+(1,461.4)
+(16.1)
+42,424.2
+41,065.8
+1,358.4
+(109.3)
+(103.4)
+(5.9)
+21,642.1
+21,508.0
+134.1
+(1,477.5)
+373.7
+872.4
+373.7
+19,612.9
+18,415.1
+1,197.8
+32.4
+Additions
+Taken over on acquisition ^
+Consolidation Adjustments
+As at March 31, 2016
+Disposals
+Consolidation Adjustments
+Taken over on acquisition ^
+Additions
+As at April 01, 2015
+904.8
+At cost or deemed cost
+3.5
+15,041.3
+3.1
+Impairment losses recognised in consolidated statement of profit and loss (also
+1,804.7
+1,522.5
+282.2
+Amortisation expense
+936.6
+915.8
+20.8
+Consolidation Adjustments
+13,151.6
+99.1
+12,752.6
+As at April 01, 2015
+Accumulated amortisation and impairment
+55,307.8
+53,892.2
+1,415.6
+As at March 31, 2017
+(782.8)
+(757.0)
+(25.8)
+Eliminated on disposals of assets
+3.5
+15,140.4
+399.0
+312.8
+Assets
+Trademarks, Designs
+and Other Intangible
+As at April 01, 2015
+As at March 31, 2016
+As at March 31, 2017
+Carrying amount
+915.3 49,041.3
+0.4 534.6
+1,880.7
+20.2
+68.1 33,401.4
+41.0
+932.4
+236.1 10,988.6
+22.5
+2,098.5
+As at March 31, 2017
+(7.2) (5,787.6)
+(137.8)
+(202.4)
+(4,173.5)
+(1,266.7)
+Eliminated on
+and loss
+statement of profit
+consolidated
+recognised in
+269.7 8,522.1
+203.6
+disposals of assets
+Total
+1,646.8 29,635.4
+153.7
+Computer
+Software
+* in Million
+Following are the changes in the carrying value of intangible assets
+Other than internally generated
+Note 3b
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 201
+782.0 84,952.9
+12.0
+540.1
+610.4 70,000.7
+781.5
+617.6
+22.6 1,270.7
+1.4 1,306.9
+0.6 1,605.3
+171.2 33,597.9
+179.9 37,263.0
+235.3 42,141.5
+207.5
+635.0
+1,610.1 34,315.1
+215.6
+731.2
+1,678.5 30,975.6
+2,245.1
+2,880.4
+616.6 75,831.4
+259.4
+March 31, 2016
+Quantity
+7,138.1
+Less: allowance for doubtful interest accrued and due on loans
+Doubtful
+Considered good
+Interest accrued and due on loans (Refer notes 70)
+Interest accrued on investments/balances with banks
+OTHER FINANCIAL ASSETS (CURRENT)
+Note 17
+Less: allowance for doubtful Loans
+Doubtful
+Unsecured, considered good
+Secured, considered good
+Loans to employees/others
+Less: allowance for doubtful loans
+Doubtful
+Unsecured, considered good
+Loans to related parties (Refer notes 49 and 70)
+Receivable on account of assets under finance lease - secured, considered good
+(Refer note 55)
+LOANS (CURRENT)
+Note 16
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+Security deposits
+Derivatives not designated as hedges
+Other*
+As at
+(4.5)
+4.5
+4.5
+6,873.0
+3,360.6
+409.0
+10,295.9
+8.7
+9,728.1
+4.5
+(4.5)
+238.0
+454.0
+(274.0)
+PHARMA
+274.0
+(512.0)
+512.0
+238.0
+454.0
+10.0
+April 01, 2015
+As at
+* in Million
+As at
+March 31, 2016
+10.6
+March 31, 2017
+512.0
+(512.0)
+(4.5)
+SUN
+46,848.6 Million; April 01, 2015: 28,052.4 Million) and margin
+96.1 Million) which have an original maturity of more than 12 months.
+164.4
+57,564.2
+14,896.4
+143.6
+18.0
+80,751.4
+53,731.0
+26,858.8
+49,192.3
+35,576.1
+1,813.9
+45.7
+86,628.0
+April 01, 2015
+* in Million
+As at
+As at
+March 31, 2016
+March 31, 2017
+As at
+Cash on hand
+Cheques, drafts on hand
+In deposit accounts with original maturity less than 3 months
+In current accounts
+Balance with Banks
+CASH AND CASH EQUIVALENTS
+Note 14
+50,927.5
+67,756.6
+72,026.1
+(1,395.6)
+20.9
+72,645.9
+Note 15
+BANK BALANCES OTHER THAN DISCLOSED IN NOTE 14 ABOVE
+(*) Other bank balances include deposits amounting to 25,700.8 Million (March 31, 2016:
+monies amounting to 70.2 Million (March 31, 2016: ₹ 97.3 Million; April 01, 2015:
+37,124.8
+51,065.1
+64,780.4
+108.5
+97.3
+147.2
+58.5
+63.0
+59.3
+ANNUAL REPORT 2016-17 211
+36,957.8
+April 01, 2015
+As at
+As at
+March 31, 2016
+March 31, 2017
+64,573.9
+As at
+in Million
+Balances held as margin money or security against guarantees and other
+commitments (*)
+Unpaid dividend accounts
+Earmarked balances with banks
+Deposit accounts (*)
+50,904.8
+9,736.8
+10,190.8
+10,704.9
+10,715.5
+in Million
+* in Million
+Number of
+March 31, 2016
+As at
+As at
+March 31, 2017
+Number of
+shares
+Authorised
+EQUITY SHARE CAPITAL
+Note 19
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+12,519.4
+115.3
+46.5
+16,798.2
+22,949.9
+168.2
+6,537.4
+7,855.3
+shares
+As at
+April 01, 2015
+Number of
+shares
+in Million
+Equity shares of * 1 each
+OTHER EQUITY
+Note 20
+2,071.2
+2,071.2
+2,406.6 2,071,163,910
+2,406.6 2,071,163,910
+2,399.3 2,406,605,118
+2,399.3 2,406,605,118
+2,399,260,815
+Equity shares of 1 each (Refer note 42) 2,399,260,815
+Issued, subscribed and fully paid up
+6,000.0
+5,990,100,000
+8,997.8
+10.0
+5,990.0
+5,990,000,000
+5,990.0
+10.0
+6,000.0
+5,990,000,000
+100,000
+10.0
+6,000.0 5,990,100,000
+5,990,100,000
+100,000
+Cumulative preference shares of 100 each
+5,990.0
+5,990,000,000
+100,000
+1,828.9
+4,422.7
+9,023.1
+934.7
+92.4
+627.7
+130.1
+177.8
+70.9
+88.8
+4.9
+0.2
+88.8
+959.8
+4.9
+151.5
+(151.5)
+0.2
+214.9
+90.8
+284.4
+599.9
+April 01, 2015
+* in Million
+As at
+As at
+March 31, 2016
+March 31, 2017
+As at
+10,233.6
+10,481.6
+(214.9)
+(1,955.7)
+331.3
+2,258.5
+2,537.4
+2,537.3
+2,601.6
+1,500.4
+1,936.4
+2,159.2
+April 01, 2015
+As at
+As at
+March 31, 2016
+March 31, 2017
+25,507.5
+As at
+212 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Other
+Balances with government authorities
+Advances for supply of goods and services
+Prepaid expenses
+Export incentives receivable
+OTHER CURRENT ASSETS
+* As at March 31, 2017 and as at March 31, 2016 includes receivable towards sale of assets/manufacturing facilities. As at April 01, 2015 includes receivable
+from a third party, which has agreed to bear damages paid by a subsidiary on account of patent infringement in consideration of the Group agreeing to sell them
+pharmaceutical products at a negotiated discounted price for a specified period.
+Note 18
+26,751.9
+890.8
+in Million
+(Refer consolidated statement of changes in Equity for detailed movement in other equity balances)
+(2,109.9)
+52,323.1
+335,039
+Pramerica Mutual Fund-Pramerica Liquid Fund-Direct
+Plan-Growth Option fully paid
+6,825,507 1,320.7
+ICICI Prudential Mutual Fund-ICICI Prudential Money
+Market Fund - Direct Plan - Growth
+400.1
+1,662,199
+ICICI Prudential Mutual Fund-ICICI Prudential Liquid -
+Direct Plan - Growth
+214.3
+20,000,000
+227.8
+21,000,000
+109.0
+10,000,000
+213.3
+20,000,000
+272.6
+25,000,000
+Reliance Mutual Fund - Reliance Fixed Horizon Fund
+-XXVI-Series 12-Direct Plan Growth Plan
+Religare Invesco Mutual Fund - Religare Invesco FMP
+Serie 23-Plan O (370 Days) - Direct Plan Growth
+Religare Invesco Mutual Fund - Religare Invesco FMP
+Series 23-Plan H (370 Days)-Direct Plan Growth
+Religare Invesco Mutual Fund - Religare Invesco FMP
+Series 23-Plan L (370 Days)-Direct Plan Growth
+Religare Aegon Mutual Fund - Religare Invesco FMP
+Series 23-Plan N (367 Days)-Direct Plan Growth
+Unit of 100 each fully paid
+Series 9 Direct Plan Growth Plan
+213.3
+18,395,541
+500.5
+Unit of 1000 each fully paid
+Axis Mutual Fund - Axis Liquid Fund-Direct Growth
+110,943
+500.5
+249,960
+250.1
+107,519
+DSP BlackRock Mutual Fund-DSP BlackRock Liquidity
+Fund-Direct Plan-Growth
+Fund Plan B-Growth
+750.7
+467,631
+1,502.5
+863,209
+Reliance Mutual Fund - Reliance Yearly Interval Fund -
+400.1
+Baroda Pioneer Mutual Fund -Baroda Pioneer Liquid
+750.6
+348,489
+500.5
+214,785
+BNP Paribas Mutual Fund- BNP Paribas Overnight Fund-
+Direct Plan Growth Option
+750.7
+483,934
+Axis Mutual Fund - Axis Liquid Fund- Direct Plan
+Growth-CFDG
+200.1
+213,966
+ANNUAL REPORT 2016-17 209
+320.9
+Reliance Mutual Fund - Reliance Fixed Horizon Fund-
+XXVI-Series-31-Direct Plan-Growth Plan
+Series 158 Direct
+Kotak Mutual Fund - Kotak FMP
+Series 157 Direct - Growth
+Series 156 Direct - Growth
+Kotak Mutual Fund - Kotak FMP
+Kotak Mutual Fund - Kotak FMP
+Amount
+Quantity
+Amount
+Quantity
+Amount
+April 01, 2015
+March 31, 2016
+As at
+As at
+As at
+March 31, 2017
+Quantity
+* in Million
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+L&T Mutual Fund-L&T FMP
+Series 10- Plan T - Growth
+Reliance Mutual Fund-Reliance Yearly Interval Fund
+-Series 1-Direct Plan-Growth Plan
+Reliance Mutual Fund - Reliance Fixed Horizon Fund -
+XXVI - Series 9 - Direct Plan Growth Plan
+214.2
+18,423,501
+270.1
+25,000,000
+Reliance Mutual Fund - Reliance Fixed Horizon Fund-
+XXVI-Series-20-Direct Plan-Growth Plan
+Reliance Mutual Fund - Reliance Yearly Interval Fund-
+Series 8-Direct Plan Growth Plan
+544.9
+45,929,287
+Reliance Mutual Fund - Reliance Yearly Interval Fund -
+Series 6 -Direct Growth Plan
+545.4
+50,000,000
+30,000,000
+278.4
+304.3
+22,980,898
+272.9
+25,000,000
+217.4
+20,000,000
+217.7
+20,000,000
+272.5
+25,000,000
+22,980,898
+SUN
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+1,212.2
+236.8
+230.1
+1,212.2
+236.8
+230.1
+21,662.2
+2,308.8
+238.6
+500
+285.7
+600
+488.8
+1,000
+244.6
+500
+491.0
+1,000
+323,324 1,000.1
+2,239,411 5,048.2
+1,752.4
+2,078.7
+6,901.3
+20,450.0
+CORPORATE OVERVIEW 01-07
+69,712.3
+74,136.0
+1,395.6
+1,955.7
+2,109.9
+Doubtful
+50,927.5
+67,756.6
+72,026.1
+Considered good
+716,594
+Unsecured
+* in Million
+As at
+As at
+March 31, 2016
+March 31, 2017
+As at
+TRADE RECEIVABLES
+Note 13
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+April 01, 2015
+1,001.0
+735,345
+210 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+500.1
+187,362
+Kotak Mutual Fund-Kotak Floater Short Term - Direct
+Plan Growth
+250.3
+88,128
+Kotak Mutual Fund-Kotak Liquid Scheme Plan A-Direct
+Plan-Growth
+500.2
+367,372
+750.7
+508,251
+334,131
+Indiabulls Mutual Fund-Indiabulls Liquid Fund-Direct
+Plan Growth
+Quantity
+Amount
+Quantity
+Amount
+April 01, 2015
+in Million
+As at
+As at
+March 31, 2016
+As at
+March 31, 2017
+Quantity
+FOR THE YEAR ENDED MARCH 31, 2017
+Amount
+Less: Allowance for doubtful debts (expected credit loss allowance)
+830.8
+325.1
+Aggregate amount of impairment in value of investments
+impairment
+Aggregate amount of unquoted investments before
+Aggregate amount of quoted investments at market value
+investments
+Aggregate book value (carrying value) of quoted
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+500,000 each
+JM Financial Products Ltd- 180D CP 17AG15
+Units of Face Value of
+04SP15 Units of Face Value of 500,000 each
+110,235
+Barclays Investment & Loans (India) Ltd- 193D CP
+Barclays Investment & Loans (India) Ltd- 90D CP May 5,
+Units of Face Value * 500,000 each
+JM Financial Products Ltd
+Units of Face Value of 500,000 each
+Housing Development Finance Corporation Limited
+Unquoted
+In commercial paper
+SBI Mutual Fund-SBI Magnum Insta Cash Fund-Direct
+Plan-Growth
+Reliance Mutual Fund-Reliance Liquid Fund - Cash Plan -
+Direct Growth Plan
+LIC Mutual Fund-LIC MF Liquid Fund - Direct - Growth
+Principal Mutual Fund-Principal Cash Management
+Fund-Direct Plan Growth
+2016; Units of Face Value of 500,000 each
+in Million
+As at
+March 31, 2017
+0.0
+3,082.7
+As at
+in Million
+As at
+March 31, 2016
+March 31, 2017
+As at
+CURRENT TAX LIABILITIES (NET)
+Note 30
+Others (Refer note 61)
+Employee benefits (Refer note 56)
+PROVISIONS (CURRENT)
+Note 29
+Others
+Deferred government grants (Refer note 72)
+Deferred revenue
+Advance from customers
+Statutory remittances
+OTHER CURRENT LIABILITIES
+Note 28
+* includes claims, recall charges, contractual and expected milestone obligations, trade and other commitments.
+Others*
+3,583.5
+1,205.8
+719.1
+April 01, 2015
+3,258.5
+As at
+in Million
+24,447.0
+22,729.8
+1,717.2
+* in Million
+As at
+April 01, 2015
+29,734.4
+28,102.9
+40,159.1
+37,938.8
+Derivatives not designated as hedge
+1,631.5
+2,220.3
+March 31, 2017
+As at
+602.7
+4,237.8
+166.8
+4,469.4
+306.0
+4,620.5
+12.6
+6.6
+13.4
+370.0
+As at
+March 31, 2016
+March 31, 2017
+Derivatives designated as hedge
+24,137.4
+March 31, 2017
+* in Million
+As at
+As at
+As at
+Security deposits
+Unpaid dividends
+Interest accrued
+Current maturities of finance lease obligations (Refer note 68)
+Current maturities of long-term debt (Refer note 68)
+OTHER FINANCIAL LIABILITIES (CURRENT)
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+Note 27
+216 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+32,430.3
+35,829.2
+43,953.9
+109.6
+32,320.7
+17,368.2
+39.5
+March 31, 2016
+1,770.7
+April 01, 2015
+13,975.8
+3,188.5
+2,237.8
+6,873.3
+22,116.3
+1,883.8
+5,322.6
+216.1
+217.4
+26.6
+1,226.8
+2,086.3
+Payables on purchase of property, plant and equipment
+1,940.7
+17.7
+179.4
+65.7
+72.8
+76.6
+320.3
+439.2
+384.1
+21.9
+32.7
+15.8
+As at
+March 31, 2016
+As at
+April 01, 2015
+Miscellaneous income
+Gain on disposal of an associate entity
+Income from government grants
+Lease rental and hire charges
+Insurance claims
+175.2
+618.5
+591.7
+18.7
+Gain on disposal of property, plant and equipment and other intangible assets
+Sundry balances written back
+353.3
+72.2
+Net gain arising on financial assets measured at fair value through profit or loss
+528.0
+479.3
+Gain on sale of financial assets measured at fair value through profit or loss
+502.9
+420.5
+Dividend income on investments
+3,572.2
+3,711.7
+134.4
+284.7
+249.4
+243.9
+40,276.5
+18,763.7
+3,724.3
+March 31, 2016
+in Million
+Year ended
+51,246.1
+(174.9)
+(21,811.0)
+20,495.8
+171.0
+52,565.2
+Year ended
+March 31, 2017
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+218
+220.1
+Inventories at the end of the year
+Purchases during the year
+Inventories acquired on acquisition (Refer note 78)
+Inventories at the beginning of the year
+Raw and packing materials
+COST OF MATERIALS CONSUMED
+Note 33
+330.6
+6,582.5
+304.6
+6,231.5
+201.3
+20.9
+Foreign currency translation difference
+340.8
+2.0
+2.5
+Year ended
+March 31, 2016
+* in Million
+315,784.4
+Year ended
+March 31, 2017
+302,642.3
+13,142.1
+OTHER INCOME
+Note 32
+Other operating revenues
+Sale of products (including excise duty)
+REVENUE FROM OPERATIONS
+Note 31
+278,880.7
+FOR THE YEAR ENDED MARCH 31, 2017
+PHARMA
+SUN
+217
+ANNUAL REPORT 2016-17
+5,914.7
+5,914.7
+2,472.1
+1,471.2
+2,472.1
+1,471.2
+Provision for income tax [Net of advance income tax]
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+111.4
+35,717.8
+5,989.6
+284,870.3
+* in Million
+Financial guarantee given measured at fair value through profit or loss
+Others
+913.7
+852.7
+Other financial assets carried at amortised cost
+5.1
+9.7
+Investments carried at fair value through profit or loss
+61.0
+Investments in debt instruments at fair value through other comprehensive income
+119.8
+Year ended
+73.4
+1,048.2
+769.3
+Loans and advances at amortised cost
+1,263.3
+1,602.3
+Bank deposits at amortised cost
+Interest Income on:
+March 31, 2016
+March 31, 2017
+Year ended
+Investments carried at amortised cost
+43,830.1
+123.8
+Dues to micro and small enterprises
+Others
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+214 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Effective portion of cash flow hedges -The cash flow hedging
+reserve represents the cumulative effective portion of gains or
+losses arising on changes in fair value of designated portion of
+hedging instruments entered into for cash flow hedges. The
+cumulative gain or loss arising on the changes of the fair value
+of the designated portion of the hedging instruments that are
+recognised and accumulated under the cash flow hedge reserve will
+be reclassified to profit or loss only when the hedged transaction
+affects the profit or loss, or included as a basis adjustment to the
+non-financial hedged item.
+Foreign currency translation reserve - Exchange differences
+relating to the translation of the results and net assets of the
+Group's foreign operations from their functional currencies to the
+Group's presentation currency (i.e. *) are recognised directly in the
+other comprehensive income and accumulated in foreign currency
+translation reserve. Exchange difference in the foreign currency
+translation reserve are reclassified to profit or loss on the disposal of
+the foreign operation.
+Equity instrument through OCI - The Company has elected to
+recognise changes in the fair value of certain investment in equity
+instrument in other comprehensive income. This amount will
+be reclassified to retained earnings on derecognition of equity
+instrument.
+Debt instrument through OCI - The Company has elected to
+recognise changes in the fair value of certain investment in debt
+instrument in other comprehensive income. This amount will
+be reclassified to retained earnings on derecognition of debt
+instrument.
+General Reserve - The reserve arises on transfer portion of the net
+profit pursuant to the earlier provisions of Companies Act 1956.
+Mandatory transfer to general reserve is not required under the
+Companies Act, 2013.
+Legal reserve - The reserve has been created by an overseas
+subsidiary in compliance with requirements of local laws.
+Capital redemption reserve - The Company has recognised capital
+redemption reserve on buyback of equity shares from its retained
+earnings. The amount in Capital Redemption Reserve is equal to
+nominal amount of the equity shares bought back.
+Amalgamation reserve - The reserve was created pursuant to
+scheme of amalgamation in earlier years.
+Revaluation reserve - Revaluation reserve is utilised in accordance
+with provisions of the Companies Act 2013.
+Share option outstanding account - The fair value of the equity
+settled share based payment transactions is recognised to share
+option outstanding account.
+Debenture redemption reserve - The Company is required to create
+a debenture redemption reserve out of the profits which is available
+for payment of dividend. This reserve was transferred to general
+reserve on redemption of debentures.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+Note 21
+BORROWINGS (NON-CURRENT) [Refer note 68]
+Redeemable non-convertible debentures
+Unsecured
+As at
+Others (Refer note 61)
+Employee benefits (Refer note 56)
+PROVISIONS (NON-CURRENT)
+Note 23
+* includes contractual and expected milestone obligation
+Other financial liabilities*
+Derivatives not designated as hedge
+Interest accrued
+Trade/security deposits received
+SUN
+OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+Deferred payment liabilities
+Long-term maturity of finance lease obligations
+Unsecured
+From other parties
+Secured
+From Department of Biotechnology
+Unsecured
+Secured
+From banks
+Term loans
+Note 22
+ANNUAL REPORT 2016-17 213
+Securities premium reserve - The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve.
+In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is
+accounted as securities premium reserve. This reserve is utilised in accordance with the provisions of the Companies Act, 2013.
+Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as
+capital reserve.
+Nature and purpose of each reserve
+Total reserves and surplus
+Effective portion of cash flow hedges
+Foreign currency translation reserve
+Equity instrument through other comprehensive income
+Debt instrument through other comprehensive income
+C) Items of other comprehensive income (OCI)
+Retained earnings
+General reserve
+Legal reserve
+507.5
+11,894.6
+Capital redemption reserve
+Revaluation reserve
+Share options outstanding account
+Debenture redemption reserve
+Securities premium reserve
+Capital reserve
+B) Reserve and surplus
+A) Share application money pending allotment
+March 31, 2017: ₹ 7,177) [Refer Note 58 (b)]
+149.0
+As at
+April 01, 2015
+As at
+March 31, 2016
+6.7
+Amalgamation reserve
+March 31, 2017
+456.9
+18,585.2
+2,083.4
+278,008.5
+327,418.2
+6,883.5
+1.3
+4,081.1
+15,943.1
+(3.4)
+339.7
+7,015.7
+46.2
+363,997.4
+34,828.0
+216,743.1
+35,578.0
+251,630.4
+306,456.9
+35,578.0
+0.9
+268.0
+18,220.3
+1.1
+7.5
+43.8
+43.8
+43.8
+39.8
+82.1
+48.9
+26.4
+750.0
+1,041.7
+1.1
+CORPORATE OVERVIEW 01-07
+As at
+March 31, 2016
+10,000.0
+April 01, 2015
+As at
+* in Million
+March 31, 2016
+March 31, 2017
+As at
+As at
+TRADE PAYABLES
+Note 26
+Unsecured
+Commercial paper
+Unsecured
+Secured [Refer note 69]
+From banks
+Other loans
+Unsecured
+From others
+Unsecured
+Secured (Refer note 69)
+From banks
+Loans repayable on demand
+6.2
+137.9
+105.7
+166.5
+87.8
+in Million
+As at
+April 01, 2015
+As at
+March 31, 2016
+March 31, 2017
+As at
+12,347.5
+62,126.7
+52,061.2
+18,303.2
+66,549.2
+232.1
+204.5
+1,255.4
+1,001.4
+BORROWINGS (CURRENT)
+2,739.0
+46,808.1
+198.1
+47,046.5
+* in Million
+As at
+April 01, 2015
+March 31, 2016
+March 31, 2017
+As at
+As at
+129.8
+254.3
+9.3
+259.1
+129.8
+2,560.5
+48,040.8
+Note 25
+Others
+Deferred revenue
+253.5
+3.4
+4.9
+in Million
+As at
+April 01, 2015
+219.7
+As at
+March 31, 2016
+212.7
+March 31, 2017
+As at
+13,597.7
+31,103.0
+14,360.8
+1,048.0
+1,048.0
+513.1
+2.2
+662.5
+6.7
+77.3
+327.4
+12,677.7
+April 01, 2015
+As at
+in Million
+77.3
+108.2
+20,309.9
+8,583.4
+715.8
+5,000.0
+1,624.6
+1,842.2
+Deferred government grants (Refer note 72)
+Advances from customer
+OTHER NON-CURRENT LIABILITIES
+Note 24
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 215
+23,074.5
+1,340.1
+18,958.6
+1,894.6
+2,353.9
+16,604.7
+April 01, 2015
+As at
+As at
+March 31, 2016
+3,146.3
+8,964.8
+12,111.1
+March 31, 2017
+As at
+* in Million
+1,816.7
+21,179.9
+(452.4)
+(20,495.8)
+41,816.3
+South Africa
+100.00%
+100.00%
+100.00%
+36
+Sun Pharmaceuticals France
+France
+100.00%
+Germany
+100.00%
+37
+Sun Pharma Global FZE
+United Arab Emirates
+100.00%
+100.00%
+100.00%
+38 Sun Pharmaceuticals (SA) (Pty) Ltd.
+100.00%
+South Africa
+Sun Pharmaceuticals Germany GmbH
+(see note g)
+Sun Pharmaceutical Industries (Europe) B.V.
+Netherlands
+100.00%
+100.00%
+100.00%
+Sun Pharmaceuticals Italia S.R.L.
+Italy
+35
+100.00%
+100.00%
+34
+Sun Pharmaceuticals Spain, S.L.U.
+Spain
+100.00%
+100.00%
+100.00%
+100.00%
+32
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+43
+Caraco Pharmaceuticals Private Limited
+India
+100.00%
+United Arab Emirates
+100.00%
+44
+Sun Pharma Japan Ltd.
+Japan
+100.00%
+100.00%
+100.00%
+45
+100.00%
+100.00%
+Sun Global Development FZE
+100.00%
+39
+Sun Global Canada Pty. Ltd.
+Canada
+100.00%
+100.00%
+100.00%
+40 Sun Pharma Philippines, Inc.
+42
+Philippines
+100.00%
+100.00%
+41
+Sun Pharmaceuticals Korea Ltd.
+Korea
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+Malaysia
+71.22%
+71.22%
+71.22%
+Nigeria
+85.31%
+100.00%
+85.31%
+Netherlands
+100.00%
+100.00%
+100.00%
+India
+100.00%
+and Control of India
+85.31%
+Step down Subsidiaries
+100.00%
+100.00%
+April 01, 2015
+India
+100.00%
+100.00%
+100.00%
+France
+100.00%
+India
+100.00%
+India
+100.00%
+100.00%
+100.00%
+India
+100.00%
+100.00%
+100.00%
+25
+Caraco Pharma Inc.
+United States of America
+99.99%
+23 1333
+29
+Sun Pharmaceuticals UK Limited
+United Kingdom
+100.00%
+100.00%
+99.99%
+100.00%
+Sun Pharmaceutical Industries (Australia) Pty
+Limited
+Australia
+100.00%
+100.00%
+100.00%
+Aditya Acquisition Company Ltd.
+Israel
+30
+99.99%
+Hungary
+Alkaloida Chemical Company Zrt.
+100.00%
+100.00%
+(see note f)
+22
+26
+Chattem Chemicals Inc.
+United States of America
+100.00%
+100.00%
+100.00%
+27
+The Taro Development Corporation
+United States of America
+100.00%
+100.00%
+100.00%
+28
+Sun Pharma Healthcare FZE
+United Arab Emirates
+100.00%
+100.00%
+72.81%
+68.98%
+68.87%
+61
+62
+Taro Pharmaceutical India Private Limited
+Alkaloida Sweden AB
+India (see note i)
+Sweden
+Canada
+72.81%
+68.87%
+100.00%
+100.00%
+100.00%
+63
+Dusa Pharmaceuticals, Inc.
+United States of America
+68.98%
+100.00%
+Taro Pharmaceuticals Canada, Ltd.
+68.87%
+3 Skyline LLC
+United States of America
+72.81%
+68.98%
+68.87%
+58
+One Commerce Drive LLC
+60
+United States of America
+68.98%
+68.87%
+59
+Taro Pharmaceutical Laboratories Inc
+United States of America
+72.81%
+68.98%
+72.81%
+100.00%
+100.00%
+64
+United States of America
+100.00%
+100.00%
+(see note m)
+68
+Mutual Pharmaceutical Company Inc.
+United States of America
+AR Scientific, Inc
+100.00%
+100.00%
+69
+United Research Laboratories, Limited
+United States of America
+100.00%
+100.00%
+(see note n)
+100.00%
+67
+(see note I)
+100.00%
+Dusa Pharmaceuticals New York, Inc.
+United States of America
+100.00%
+100.00%
+100.00%
+(see note j)
+65
+Sirius Laboratories Inc
+United States of America
+100.00%
+100.00%
+100.00%
+(see note k)
+66
+URL Pharma, Inc
+United States of America
+100.00%
+57
+Proportion of ownership interest for the year ended
+March 31, 2017 March 31, 2016
+(see note h)
+68.87%
+Taro Pharmaceuticals Inc.
+Canada
+72.81%
+68.98%
+68.87%
+50
+Taro Pharmaceuticals U.S.A., Inc.
+49
+United States of America
+68.98%
+68.87%
+51
+Taro Pharmaceuticals North America, Inc.
+Cayman Islands, British
+72.81%
+68.98%
+72.81%
+68.87%
+68.87%
+72.81%
+100.00%
+46
+Morley & Company, Inc.
+United States of America
+100.00%
+100.00%
+100.00%
+68.98%
+47
+United Arab Emirates
+100.00%
+100.00%
+100.00%
+48
+Taro Pharmaceutical Industries Ltd. (TARO)
+Israel (See note b)
+Sun Laboratories FZE
+West Indies
+2555
+Taro Pharmaceuticals Europe B.V.
+222 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+68.87%
+a)
+Country of Incorporation
+56
+Taro Hungary Intellectual Property Licensing
+Hungary
+Proportion of ownership interest for the year ended
+March 31, 2017 March 31, 2016 April 01, 2015
+72.81%
+68.98%
+List of entities included in the Consolidated Financial Statements is as under:
+Name of Subsidiaries
+68.98%
+72.81%
+United Kingdom
+Netherlands
+72.81%
+68.98%
+68.87%
+53
+Taro Pharmaceuticals Ireland Limited
+Ireland
+72.81%
+68.98%
+68.87%
+54
+Taro International Ltd.
+Israel
+72.81%
+68.98%
+68.87%
+Taro Pharmaceuticals (UK) Limited
+Limited Liability Company
+70
+Foundation for Disease Elimination
+Ranbaxy (Netherlands) B.V.
+726.1
+774.3
+341.8
+1,602.1
+14,642.6
+32.1
+127.5
+18,862.0
+173.9
+3,894.8
+155.8
+2,925.0
+2,703.0
+3,784.2
+(5.2)
+115.4
+Payment to auditors (net of input credit, where applicable)
+For audit [includes Nil (Previous year ₹ 0.7 Million) in respect of previous year]
+(3,730.7)
+170.4
+3,339.9
+5,250.1
+5,250.9
+5,454.4
+1,237.8
+1,329.6
+3,022.3
+2,659.2
+1,068.2
+3,671.3
+1,253.0
+17,266.1
+1,130.0
+1,462.6
+4,097.0
+4,145.1
+859.7
+761.6
+20,736.5
+4,407.1
+193.3
+5.7
+STATUTORY REPORTS
+08-79 FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 38
+RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE CONSOLIDATED STATEMENT
+OF PROFIT AND LOSS
+Salaries and wages
+CORPORATE OVERVIEW 01-07
+Contribution to provident and other funds
+Staff welfare expenses
+Power and fuel
+Rates and taxes
+Rent
+Insurance
+Repairs and maintenance
+Printing and stationery
+Consumption of materials, stores and spare parts
+For taxation matters
+220 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+84,561.3
+16.6
+For other services
+52.1
+46.7
+Reimbursement of expenses
+4.7
+0.9
+92,260.2
+Impairment of investments
+166.8
+Impairment of non-current investment in an associate [Nil (Previous Year 16,380)]
+Impairment of property, plant and equipment and other intangible assets
+203.6
+0.0
+511.2
+Miscellaneous expenses
+10,348.6
+10,993.5
+6.8
+6,408.8
+5,633.7
+6,531.0
+Share based payments to employees
+Contribution to provident and other funds
+Salaries and wages
+(42,786.5)
+(3,937.7)
+1,717.3
+37,131.5
+March 31, 2016
+Staff welfare expenses
+Year ended
+(45,163.0)
+(2,716.3)
+(339.8)
+Year ended
+March 31, 2017
+42,786.5
+EMPLOYEE BENEFITS EXPENSE
+Note 35
+Inventories at the end of the year
+Foreign currency translation difference
+in Million
+Inventories at the beginning of the year
+Year ended
+2,760.6
+2,854.6
+68.3
+2,424.7
+March 31, 2016
+in Million
+Year ended
+March 31, 2017
+Year ended
+March 31, 2017
+43,229.1
+3,001.0
+32.3
+Exchange differences regarded as an adjustment to borrowing costs
+Unwinding of discounts on provisions
+FINANCE COSTS
+Note 36
+3,654.3
+47,723.1
+98.8
+40,115.5
+3,854.5
+in Million
+Year ended
+March 31, 2016
+49,023.0
+Interest expense for financial liabilities carried at amortised cost
+Interest expense others
+CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+Note 34
+FOR THE YEAR ENDED MARCH 31, 2017
+Rent
+Rates and taxes
+Insurance
+Selling and distribution
+Commission on sale
+Repairs and maintenance
+Printing and stationery
+Power and fuel
+Travelling and conveyance
+Communication
+Provision/write off for doubtful trade receivables/advances
+Professional, legal and consultancy
+Donations
+Loss on sale/write off of property, plant and equipment
+Net (gain) / loss on foreign currency transactions
+(Decrease)/increase of excise duty on inventories
+Freight outward and handling charges
+Conversion and other manufacturing charges
+Consumption of materials, stores and spare parts
+Excise duty on sales
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+3,998.0
+538.0
+5,232.4
+2,201.4
+ANNUAL REPORT 2016-17 219
+SUN
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 37
+OTHER EXPENSES
+Year ended
+March 31, 2017
+in Million
+Year ended
+March 31, 2016
+Travelling and conveyance
+Communication
+Professional, legal and consultancy
+Loss on sale/write off of property, plant and equipment, Net
+India
+100.00%
+100.00%
+100.00%
+11
+Faststone Mercantile Company Private Limited
+India
+Sun Pharma Laboratories Limited
+100.00%
+100.00%
+12
+Neetnav Real Estate Private Limited
+India
+100.00%
+100.00%
+100.00%
+100.00%
+13
+10
+100.00%
+100.00%
+100.00%
+Sun Pharmaceutical Peru S.A.C.
+Peru
+99.33%
+99.33%
+99.33%
+100.00%
+OOO "Sun Pharmaceutical Industries" Limited
+100.00%
+100.00%
+99.00%
+9
+Sun Pharma De Venezuela, C.A.
+Venezuela
+100.00%
+Russia
+Realstone Multitrade Private Limited
+India
+100.00%
+Country of Incorporation
+772222222
+16
+Softdeal Trading Company Private Limited
+17
+Ranbaxy Pharmacie Generiques
+18
+List of entities included in the Consolidated Financial Statements is as under:
+Name of Subsidiaries
+Ranbaxy Drugs Limited
+Vidyut Investments Limited
+20
+Gufic Pharma Limited
+21
+Ranbaxy (Malaysia) Sdn. Bhd.
+Ranbaxy Nigeria Limited
+23
+19
+a)
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+100.00%
+100.00%
+14
+Skisen Labs Private Limited
+India
+100.00%
+100.00%
+100.00%
+15
+Sun Pharma Holdings
+Mauritius
+100.00%
+100.00%
+100.00%
+ANNUAL REPORT 2016-17 221
+SUN
+PHARMA
+100.00%
+24
+Mexico
+75.00%
+3,443.1
+366.3
+347.8
+318.0
+104.0
+92.9
+136.9
+3,976.2
+41.1
+583.2
+549.8
+40.2
+37.9
+209.6
+319.5
+57.1
+39.1
+80.9
+368.6
+441.7
+Miscellaneous expenses
+Less:
+Interest Income
+Miscellaneous income
+Receipts from Research activities
+Note 39
+a)
+228.0
+List of entities included in the Consolidated Financial Statements is as under:
+Name of Subsidiaries
+Country of Incorporation
+Sun Pharmaceutical Industries Limited
+Year ended
+March 31, 2017
+5,270.2
+406.3
+in Million
+Year ended
+March 31, 2016
+4,872.2
+Parent Company
+7,939.4
+9,933.4
+(0.4)
+72.50%
+72.50%
+72.50%
+United States of America
+100.00%
+100.00%
+100.00%
+100.00%
+Sun Farmaceutica do Brasil Ltda.
+100.00%
+100.00%
+100.00%
+Sun Pharma De Mexico S.A. DE C.V.
+Mexico
+75.00%
+75.00%
+Brazil
+100.00%
+100.00%
+India
+Bangladesh
+1,930.4
+21,458.5
+0.6
+1,566.9
+22,242.4
+2.0
+2.1
+9.2
+13.9
+423.0
+938.6
+434.2
+21,024.3
+954.6
+21,287.8
+Proportion of ownership interest for the year ended
+March 31, 2017 March 31, 2016 April 01, 2015
+Direct Subsidiaries
+12345678a
+Green Eco Development Centre Limited
+Sun Pharmaceutical (Bangladesh) Limited
+Sun Pharmaceutical Industries, Inc.
+SPIL De Mexico S.A. DE C.V.
+Be-Tabs Investments Proprietary Limited
+Dungan Mutual Associates, LLC
+100.00%
+i
+h
+With effect from March 02, 2017, Sun Pharmaceuticals Spain, S.L.U. has been liquidated.
+g
+With effect from August 20, 2015, Caraco Pharma Inc., has been merged with Sun Pharmaceutical Industries, Inc.
+f
+Entities at Sr. No. 24, 73, 117, 118, 119, 120, 133 and 134 have been incorporated / acquired during the year ended March 31, 2017.
+Foundation for Disease Elimination and Control of India (FDEC), a wholly owned subsidiary incorporated in India on September 21, 2016
+by the Company as part of its Corporate Social Responsibility (CSR) initiative. FDEC has entered into an MOU with Indian Council of
+Medical Research (ICMR) and Madhya Pradesh State Government to undertake the Mandla Malaria Elimination Demonstration Project
+with a goal to eliminate Malaria in the state. FDEC is a Section 8 company not considered for consolidation since it can apply its income
+for charitable purposes only and can raise funds/contribution independently.
+With effect from February 16, 2017, Taro Hungary Intellectual Property Licensing Limited Liability Company has been liquidated.
+Taro Pharmaceutical India Private Limited is under liquidation.
+In respect of entities at Sr. Nos. 4 to 8, 95, 111, 113, 114, 117, 119 and 125 the reporting date is as of December 31, 2016 and different
+from the reporting date of the Parent Company. Adjustments have been made for significant transactions of these subsidiaries for the
+periods from January 01, 2016 to March 31, 2016 and January 01, 2017 to March 31, 2017, on the basis of their management accounts
+for the said periods.
+79.32%
+68.98%
+81.87%
+72.81%
+e
+d
+C
+Beneficial ownership
+March 31, 2016 April 01, 2015
+79.24%
+68.87%
+March 31, 2017
+j
+k
+t
+With effect from April 07, 2016 Perryton Wind Power LLC has been liquidated.
+S
+With effect from June 30, 2015 Ranbaxy Portugal - Com E Desenvolv DeProd Farmaceuticos Unipessoal Lda has been liquidated.
+98
+During the previous year, the Company has sold its investment in Silverstreet Developers LLP with effect from April 01, 2015.
+With effect from March 01, 2016, Ranbaxy Belgium N.V. has been liquidated.
+q
+With effect from August 16, 2016 Dusa Pharmaceuticals New York, Inc. has been dissolved.
+р
+With effect from April 01, 2015, United Research Laboratories Limited, have merged into URL Pharma Inc.
+n
+With effect from April 01, 2015, AR Scientific Inc. have merged into URL Pharma Inc.
+m
+With effect from April 01, 2015, URL Pharma Inc., has merged into Mutual Pharmaceutical Company, Inc.
+|
+With effect from February 22, 2017 Sirius Laboratories Inc has been dissolved.
+With effect from March 16, 2017, Thallion Pharmaceutical Inc. was acquired and merged with Taro Pharmaceuticals Inc.
+With effect from November 02, 2015, Thea Acquisition Corporation has been merged with Insite Vision Incorporated.
+Following are the details of the Group's holding in Taro:
+Voting power
+40.61%
+19.99%
+19.99%
+19.99%
+United States of America
+Medinstill LLC
+129
+(see note y)
+130
+26.90%
+26.90%
+46.84%
+46.84%
+46.84%
+India
+Thailand
+Daiichi Sankyo (Thailand) Ltd.
+128
+26.90%
+b
+Fraizer Healthcare VII, L.P.
+Versant Venture Capital V, L.P.
+14.58%
+United States of America
+India
+134 Trumpcard Advisors and Finvest LLP
+scPharmaceuticals Inc.
+133
+28.76%
+28.76%
+131
+7.75%
+7.75%
+6.83%
+6.83%
+6.83%
+United States of America
+United States of America
+India
+Generic Solar Power LLP
+132
+7.75%
+ANNUAL REPORT 2016-17
+225
+SUN
+Demand by JDGFT, import duty with respect to import alleged to be in
+excess of entitlement as per the Advanced Licence Scheme
+3,248.0
+3,326.4
+3,488.2
+Drug Price Equalisation Account [DPEA] on account of demand towards
+unintended benefit, enjoyed by the Group
+156.0
+Service tax on certain services performed outside India under reverse
+charge basis
+16.7
+0.2
+132.8
+ESIC Contribution on account of applicability
+23.3
+23.3
+23.3
+Environment cess
+37.9
+624.3
+0.2
+2,025.3
+15.4
+Fine imposed for anti-competitive settlement agreement by European
+Commission
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+226
+302.7
+284.4
+126.0
+Other matters-employee/worker related cases, State Electricity Board,
+Punjab Land Preservation Act related matters etc.
+15.4
+124.8
+171.0
+171.0
+Alleged breach of social security code contested by French subsidiary
+(maximum penalty amount)
+Octroi demand on account of rate difference
+689.1
+773.0
+715.4
+171.0
+4,548.1
+Excise Duty on account of Valuation / Cenvat Credit
+38.8
+Significant Accounting Policies and other Notes to these Consolidated Financial Statements are intended to serve as a means of
+informative disclosure and a guide for better understanding of the consolidated position of the Group. Recognising this purpose, the
+Group has disclosed only such policies and notes from the individual financial statements which fairly represent the needed disclosures.
+Lack of homogeneity and other similar considerations made it desirable to exclude some of them, which in the opinion of the
+management, could be better viewed when referred from the individual financial statements.
+MSD-Sun FZ LLC has been deregistered with effect from September 14, 2015 having deregistration certificate dated December 25, 2016.
+Daiichi Sankyo (Thailand) Ltd.'s shares were sold as per agreement dated May 13, 2016.
+MSD - Sun LLC is under liquidation.
+During the year, Solrex Pharmaceuticals Company, a partnership firm has been converted into company which is known as Sun Pharma
+Medisales Private Limited.
+Zalicus Pharmaceuticals Limited was acquired during the previous year and subsequently amalgamated in Taro Pharmaceuticals Inc., on
+October 05, 2015.
+aa
+Z
+Disclosures mandated by the Companies Act, 2013 Schedule III Part II by way of additional information is given in Annexure A.
+y
+W
+V
+u
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS
+NOTES TO THE CONSOLIDATED
+PHARMA
+X
+Note 40
+CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
+A)
+45.7
+Sales Tax on account of Rebate / Classification
+26,706.7
+30,915.7
+56,712.6
+II) Liabilities Disputed - Appeals filed with respect to:
+Income Tax on account of Disallowances / Additions
+1,021.3
+1,127.5
+1,147.6
+* in Million
+As at
+April 01, 2015
+March 31, 2016
+March 31, 2017
+As at
+As at
+Claims against the Group not acknowledged as debts
+1)
+Contingent Liabilities
+Zenotech Laboratories Limited
+127
+Name of Associates
+50.00%
+Ranbaxy Laboratories, Inc.
+108
+100.00%
+100.00%
+100.00%
+United States of America
+Ohm Laboratories, Inc.
+United States of America
+107
+100.00%
+100.00%
+Thailand
+Ranbaxy (Thailand) Company Limited
+106
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+Ukraine
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+111
+known as Ranbaxy Morocco LLC)
+100.00%
+100.00%
+100.00%
+100.00%
+Morocco
+110
+67.50%
+67.50%
+67.50%
+United States of America
+Ranbaxy Signature LLC
+109
+Sun Pharmaceuticals Morocco LLC (Formerly
+United States of America
+Ranbaxy Pharmaceuticals, Inc.
+105
+100.00%
+Spain
+Ranbaxy Holdings (U.K.) Limited
+Laboratorios Ranbaxy, S.L.U.
+Ranbaxy (U.K.) Limited
+102
+101
+100
+100.00%
+70.00%
+70.00%
+South Africa
+Sonke Pharmaceuticals Proprietary Limited
+99
+100.00%
+100.00%
+100.00%
+70.00%
+100.00%
+United Kingdom
+100.00%
+100.00%
+100.00%
+100.00%
+United States of America
+104 Ranbaxy Inc.
+100.00%
+100.00%
+100.00%
+United Kingdom
+Ranbaxy Europe Limited
+103
+100.00%
+100.00%
+100.00%
+United Kingdom
+100.00%
+100.00%
+100.00%
+STATUTORY REPORTS
+100.00%
+112
+50.00%
+50.00%
+United States of America
+Germany
+Artes Biotechnology GmbH
+124 S&I Ophthalmic LLC
+125
+50.00%
+50.00%
+50.00%
+50.00%
+(see note w)
+123 MSD - Sun LLC
+Name of Joint Venture Entities
+100.00%
+100.00%
+(see note v)
+India
+Sun Pharma Medisales Private Limited
+(Formerly known as Solrex Pharmaceuticals
+Company)
+122
+United States of America
+(see note v)
+45.00%
+45.00%
+50.00%
+50.00%
+(see note x)
+United Arab Emirates
+Name of Subsidiary of Joint Venture Entity
+126 MSD - Sun FZ LLC
+Proportion of ownership interest for the year ended
+March 31, 2017 March 31, 2016 April 01, 2015
+Country of Incorporation
+List of entities included in the Consolidated Financial Statements is as under:
+Name of Subsidiaries
+45.00%
+a)
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+224
+FOR THE YEAR ENDED MARCH 31, 2017
+100.00%
+100.00%
+85.10%
+Thea Acquisition Corporation
+115
+100.00%
+100.00%
+100.00%
+100.00%
+United States of America
+United Kingdom
+116
+Insite Vision Ltd.
+Insite Vision Incorporated
+113
+(see note s)
+100.00%
+100.00%
+United States of America
+Perryton Wind Power LLC
+114
+Zalicus Pharmaceuticals Limited
+117
+Ocular Technologies SARL
+100.00%
+100.00%
+India
+United States of America
+Name of Partnership Firm
+Sun Pharmaceuticals Holdings USA, INC
+121 Sun Pharma Medisales Private Limited
+(Formerly known as Solrex Pharmaceuticals
+Company)
+120
+Russia
+JSC Biosintez
+119
+(see note u)
+(see note t)
+100.00%
+100.00%
+Switzerland
+India
+Canada
+United States of America
+Sun Pharmaceutical Medicare Limited
+118
+100.00%
+United States of America
+08-79
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+100.00%
+88
+Ranbaxy GmbH
+Germany
+100.00%
+100.00%
+100.00%
+100.00%
+89
+Ireland
+100.00%
+100.00%
+100.00%
+90
+Ranbaxy Italia S.P.A.
+Italy
+Ranbaxy Ireland Limited
+100.00%
+100.00%
+Basics GmbH
+100.00%
+100.00%
+100.00%
+85
+Rexcel Egypt LLC
+Egypt
+100.00%
+Germany
+100.00%
+86
+Office Pharmaceutique Industriel Et Hospitalier
+France
+100.00%
+100.00%
+100.00%
+87
+100.00%
+Egypt
+100.00%
+91
+SUN
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+a)
+List of entities included in the Consolidated Financial Statements is as under:
+Name of Subsidiaries
+Country of Incorporation
+ANNUAL REPORT 2016-17 223
+Proportion of ownership interest for the year ended
+March 31, 2017 March 31, 2016
+94
+S.C Terapia S.A.
+95
+AO Ranbaxy (Formerly known as ZAO Ranbaxy)
+Romania
+Russia
+96.70%
+96.70%
+April 01, 2015
+100.00%
+(see note r)
+100.00%
+Sun Pharmaceutical Industries S.A.C. (Formerly
+Peru
+100.00%
+100.00%
+100.00%
+known as Ranbaxy - PRP (Peru) S.A.C.)
+92
+Farmaceuticos Unipessoal Lda
+Ranbaxy (Poland) Sp. Z o.o.
+100.00%
+100.00%
+100.00%
+93
+Ranbaxy Portugal - Com E Desenvolv DeProd
+Portugal
+100.00%
+Poland
+Ranbaxy Egypt LLC
+84
+100.00%
+75
+Sun Pharma Switzerland Limited
+76
+Silverstreet Developers LLP
+India
+Switzerland
+India
+100.00%
+Universal Enterprises Private Limited
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+(see note p)
+77
+100.00%
+Sun Pharma East Africa Limited
+74
+United States of America
+100.00%
+100.00%
+71
+10.9
+URL PharmPro, LLC
+United States of America
+100.00%
+100.00%
+100.00%
+72
+2 Independence Way LLC
+United States of America
+100.00%
+100.00%
+73
+Thallion Pharmaceutical Inc.,
+100.00%
+Kenya
+100.00%
+100.00%
+Ranbaxy Belgium N.V.
+Belgium
+100.00%
+100.00%
+(see note q)
+82
+Ranbaxy Farmaceutica Ltda.
+81
+Brazil
+100.00%
+100.00%
+83
+Ranbaxy Pharmaceuticals Canada Inc.
+Canada
+100.00%
+100.00%
+100.00%
+Ranbaxy Australia Pty Ltd)
+100.00%
+100.00%
+100.00%
+78
+Pharmalucence, Inc.
+United States of America
+100.00%
+100.00%
+100.00%
+79
+PI Real Estate Ventures, LLC
+United States of America
+100.00%
+100.00%
+100.00%
+80
+Sun Pharma ANZ Pty Ltd (Formerly known as
+Australia
+100.00%
+96.70%
+100.00%
+100.00%
+100.00%
+0.6
+670,960
+0.2
+155,697
+Add: Shares allotted to employees on exercise of employee stock options
+[excluding shares held by ESOP trust (Refer note 58)]
+2,071.2
+334.8
+2,406.6 2,071,163,910
+334,770,248
+ANNUAL REPORT 2016-17 227
+Add: Shares allotted during the year pursuant to the scheme of Amalgamation
+(Refer note 66)
+Opening Balance
+Equity shares of * 1 each
+in Million
+As at
+March 31, 2016
+Number of
+shares
+As at
+March 31, 2017
+Number of
+* in Million
+shares
+Reconciliation of the number of shares and amount outstanding at the beginning and at the end of reporting period (As at April
+01, 2015 excluding share suspense account):
+The Equity Shares of the Parent Company, having par value of ₹ 1 per share, rank pari passu in all respects including voting rights and
+entitlement to dividend.
+2,406,605,118
+2,894.4
+1,489.2
+SUN
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+Add: Shares allotted to the ESOP trust
+Add: Shares allotted during the year pursuant to scheme of
+amalgamation (Refer note 66)
+Opening balance
+Equity shares of * 1 each
+2,406.6
+iii The movement of shares issued to ESOP Trust at face value is as follows (As at April 01, 2015 excluding share suspense
+account):
+2,399.3 2,406,605,118
+PHARMA
+(7.5)
+in Million
+As at
+March 31, 2016
+* in Million
+Number of
+As at
+March 31, 2017
+Number of
+shares
+(7,500,000)
+2,399,260,815
+Less: Buy-back of shares (Refer note 65)
+Closing Balance
+FOR THE YEAR ENDED MARCH 31, 2017
+shares
+1,855.9
+2,362.0
+246.6
+2,250.5
+in Million
+As at
+April 01, 2015
+530.6
+March 31, 2016
+March 31, 2017
+As at
+As at
+COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
+819.1
+Note 41
+B)
+Future cash outflows in respect of the above matters are determinable
+only on receipt of judgements / decisions pending at various forums /
+authorities.
+Footnote:
+IV) Trade commitments
+The Parent Company and / or its subsidiaries are involved in various legal proceedings including product liability, contracts, employment
+claims, anti-trust and other regulatory matters relating to conduct of its business. The respective company records a provision in the
+financial statements to the extent that it concludes that a liability is probable and estimable based on the status of these cases, advice of
+the counsel, management assessment of the likely damages etc. The Group carries product liability insurance / is contractually indemni-
+fied by the manufacturer, for an amount it believes is sufficient for its needs. In respect of other claims, the Group believes, these claims
+do not constitute material litigation matters and with its meritorious defences the ultimate disposition of these matters are not expected
+to have material adverse effect on its Financial Statements.
+III) LEGAL PROCEEDINGS
+FOR THE YEAR ENDED MARCH 31, 2017
+Guarantees Given by the bankers on behalf of the Group
+776.9
+As at
+Commitments
+1,715.2
+ii
+Rights, Preferences and Restrictions attached to Equity Shares
+i
+DISCLOSURES RELATING TO SHARE CAPITAL
+Note 42
+V) Letters of credit for imports
+IV) Investment related commitments
+III) Lease related commitments [Refer notes 55]
+Derivative related commitments - forward foreign exchange contracts
+[Refer note 47(C)]
+II)
+in Million
+As at
+April 01, 2015
+7,828.3
+As at
+March 31, 2016
+9,085.0
+6,089.7
+Estimated amount of contracts remaining to be executed on capital
+account (net of advances)
+1)
+March 31, 2017
+Less: shares allotted by ESOP trust on exercise of employee stock option
+Closing balance (March 31, 2017: 30,366)
+FINANCIAL STATEMENTS 80-278
+iv
+vi
+7.6 182,927,440
+182,437,880
+182,379,237
+Quality Investments Pvt. Ltd.
+Family Investment Pvt. Ltd.
+9.4
+195,343,760
+8.1
+7.6
+195,343,760
+194,820,971
+Tejaskiran Pharmachem Industries Pvt. Ltd.
+9.7
+201,385,320
+8.4
+201,385,320
+8.4
+8.1
+200,846,362
+182,927,440
+7.6 182,868,640
+96
+Ranbaxy South Africa Proprietary Limited
+South Africa
+100.00%
+100.00%
+100.00%
+97
+8.8
+Ranbaxy Pharmaceutical Proprietary Limited
+100.00%
+100.00%
+100.00%
+228 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+8.8
+182,868,640
+7.6
+South Africa
+Viditi Investment Pvt. Ltd.
+11.2
+231,140,480
+0.1
+123,381
+(0.2)
+(223,135)
+(0.1)
+0.0
+0.1
+160,000
+(93,015)
+30,366
+0.2
+0.1
+123,381
+in Million
+Number of
+shares
+* in Million
+As at
+March 31, 2016
+As at
+March 31, 2017
+Number of
+shares
+186,516
+1,035,581,955 (upto March 31, 2016: 1,035,581,955; upto April 01, 2015: 1,035,581,955) equity shares of 1 each have been allotted
+as fully paid up bonus shares during the period of five years immediately preceding the date at which the Balance Sheet is prepared.
+334,956,764 (upto March 31, 2016: 334,956,764; April 01, 2015: Nil) equity shares of 1 each have been allotted, pursuant to scheme
+of amalgamation, without payment being received in cash during the period of five years immediately preceding the date at which the
+Balance Sheet is prepared. (Refer note 66)
+Refer note 58 for number of employee stock options against which equity shares are to be issued by the Parent Company / ESOP Trust
+upon vesting and exercise of those stock options.
+vii 7,500,000 (upto March 31, 2016: Nil, upto April 01, 2015: Nil) equity shares of 1 each have been bought back during the period of five
+years immediately preceding the date at which the Balance Sheet is prepared. The shares bought back in the current year were cancelled
+immediately. (Refer note 65)
+9.6
+231,140,480
+9.6
+230,285,690
+Dilip Shantilal Shanghvi
+Holding
+shares held
+% of
+% of
+Holding
+shares held
+% of
+Holding
+Number of
+shares held
+As at March 31, 2017
+As at April 01, 2015
+Number of
+As at March 31, 2016
+Number of
+Name of Shareholders
+viii Equity Shares held by each shareholder holding more than 5 percent Equity Shares (As at April 01, 2015 excluding Share Suspense
+Account) in the Parent Company are as follows:
+V
+r
+437.8
+694.7
+Payable on purchase of property, plant and equipment
+Trade/security deposits
+Unpaid dividends
+Interest accrued but not due on borrowings
+Trade payables
+Current maturities of long-term debt and finance lease obligations
+Borrowings
+Financial liabilities
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS
+NOTES TO THE CONSOLIDATED
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+221,858.3
+676.8
+4.9
+Other financial liabilities
+Mandatorily measured :
+Derivatives not designated as hedges
+Total
+Interest accrued and due on loans
+Interest accrued on investments / balances with banks
+Bank balances other than Cash and cash equivalents
+Cash and cash equivalents
+Trade receivables
+Loans to employees/others
+Loans to related parties
+Receivable on account of assets under finance lease
+284.4
+Others - unquoted
+Mutual Funds - unquoted
+Government securities - unquoted (* 10,000)
+Bonds/debentures - unquoted
+Bonds/debentures-quoted
+Equity instruments - unquoted
+Equity instruments - quoted
+Investments
+Financial assets
+Commercial paper - unquoted
+51,065.1
+80,751.4
+568.6
+Receivable on account of assets under finance lease
+237.9
+Others - unquoted
+Commercial paper - unquoted
+5,676.9
+106.0
+0.0
+872.1
+# 6,207.7
+Loans to employees/others
+3.8
+306.2
+cost
+comprehensive
+Amortised
+As at March 31, 2016
+Fair value
+through other
+Fair value through
+profit or loss
+* in Million
+147,784.2
+26.6
+income
+Other financial assets
+Trade receivables
+Security deposits
+7,631.4
+67,756.6
+11,399.4
+389.3
+1,224.4
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+230
+# Pertains to investment in equity instruments of Impax Laboratories Inc., Krebs Biochemicals and Industries Limited and FS INVT CORP COM.
+Bank deposits with more than 12 months maturity
+7,079.8
+Total
+Derivatives not designated as hedges
+Mandatorily measured:
+Other financial assets
+Interest accrued on loans
+Interest accrued on investments / balances with banks
+Bank balances other than cash and cash equivalents
+Cash and cash equivalents
+1,534.6
+7,759.4
+* in Million
+Fair value through
+profit or loss
+As at March 31, 2016
+Fair value
+through other
+comprehensive
+income
+FAIR VALUE HIERARCHY
+Note 45
+Total
+Derivatives not designated as hedges
+Mandatorily measured :
+Other financial liabilities
+Payable on purchase of property, plant and equipment
+Trade/security deposits
+* in Million
+Unpaid dividends
+Current maturities of long-term debt and finance lease obligations
+Trade payables
+Borrowings
+Financial liabilities
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+Interest accrued but not due on borrowings
+ANNUAL REPORT 2016-17 231
+Fair value through
+profit or loss
+Amortised
+Derivative not designated as hedges
+Derivatives designated as hedges
+232
+Financial liabilities
+Derivatives designated as hedges
+Derivatives not designated as hedges
+-
+Others unquoted
+Mutual funds - unquoted
+As at April 01, 2015
+Fair value
+through other
+comprehensive
+income
+Government securities - quoted
+Equity instruments - quoted
+Investments
+Financial assets and liabilities measured at fair value-recurring fair value measurements
+Financial assets
+323.7
+13,997.7
+32,440.5
+75,724.4
+cost
+Equity instruments - unquoted
+Bonds/debentures - quoted
+217.4
+217.4
+# Pertains to investment in equity instruments of Impax Laboratories Inc., Krebs Biochemicals and Industries Limited and FS INVT CORP COM.
+11,384.0
+income
+Amortised
+cost
+* in Million
+As at April 01, 2015
+Fair value
+through other
+comprehensive
+profit or loss
+Fair value through
+127,492.8
+3,862.4
+4.6
+443.6
+2,086.3
+72.8
+444.1
+35,829.2
+1,803.4
+83,164.2
+216.1
+216.1
+cost
+Amortised
+230.4
+200,020.4
+# 8,500.6
+97.1
+1,946.2
+22,375.1
+Total
+Derivatives not designated as hedges
+Mandatorily measured:
+25,589.3
+571.3
+Security deposits
+88.8
+139.7
+2,883.4
+37,124.8
+50,927.5
+11,674.4
+238.0
+399.3
+55.0
+524.3
+19,925.7
+0.0
+72,645.9
+2,931.8
+26.6
+1,940.7
+4,235.9
+1,592.0
+3.0
+161.6
+4.9
+5,997.4
+53,266.3
+1,592.0
+49,030.4
+3.0
+4.9
+55,027.8
+* in Million
+As at
+April 01, 2015
+Russian
+South
+Japanese
+161.6
+13,290.1
+-
+19,541.0
+Total
+Capital
+Revenue, net (Excluding Depreciation) [Refer Note 38]
+RESEARCH AND DEVELOPMENT EXPENDITURE
+Note 43
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+08-79 FINANCIAL STATEMENTS 80-278
+49,030.4
+STATUTORY REPORTS
+2,063.9
+883.1
+2,947.0
+1,191.0
+2,086.9
+17,375.7
+26.0
+1,217.0
+2,165.3
+2,086.9
+-
+CORPORATE OVERVIEW 01-07
+Note 44
+US Dollar
+Total
+69.2
+1.0
+3.0
+4,347.8
+69.2
+1.0
+3.0
+51,497.4
+2,041.2
+2,041.2
+b) Sensitivity
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the
+end of the reporting period does not reflect the exposure during the year.
+c) Derivative contracts
+The Group is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in US Dollar, Euro,
+South African Rand and Russian Rouble, and foreign currency debt in primarily in US Dollar. The Group uses foreign currency forward
+contracts, foreign currency option contracts and currency swap contracts (collectively, "derivatives") to mitigate its risk of changes in
+foreign currency exchange rates. The counterparty for these contracts is generally a bank or a financial institution.
+Hedges of highly probable forecasted transactions
+The Group designates its derivative contracts that hedge foreign exchange risk associated with its highly probable forecasted
+transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recorded as in
+other comprehensive income, and re-classified in the income statement as revenue in the period corresponding to the occurrence of
+the forecasted transactions. The ineffective portion of such cash flow hedges is immediately recorded in the consolidated statement of
+profit and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Group has recorded a loss of 46.2 Million for
+year ended March 31, 2017 and Nil for year ended March 31, 2016 in other comprehensive income. The Group also recorded as
+238
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+For the years ended March 31, 2017, March 31, 2016 and April 01, 2015, every 5% strengthening in the exchange rate between the
+Indian Rupee and the respective major currencies for the above mentioned financial assets/liabilities would increase Group's profit and
+equity by approximately 1,054.5 Million, ₹ 1,774.3 Million and 1,813.8 Million respectively. A 5% weakening of the Indian Rupee and
+the respective major currencies would lead to an equal but opposite effect.
+Euro
+2,233.4
+49,383.0
+-
+Rouble African Rand
+Yen
+10,937.2
+450.5
+11,387.7
+1,350.8
+617.8
+1,968.6
+1,237.5
+362.5
+7.4
+47,149.6
+13,895.4
+0.1
+-
+1,326.7
+1,495.8
+362.6
+7.4
+15,222.1
+47,149.6
+258.3
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CATEGORIES OF FINANCIAL INSTRUMENTS
+Investments
+Other financial liabilities
+Derivatives designated as hedges
+Payable on purchase of property, plant and equipment
+Trade/security deposits
+Unpaid dividends
+Interest accrued but not due on borrowings
+Trade payables
+Current maturities of long-term debt and finance lease obligations
+Mandatorily measured:
+Borrowings
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 229
+241,711.6
+3,970.6
+1,255.4
+4,235.8
+Financial liabilities
+1,666.0
+Derivatives not designated as hedges
+Financial assets
+179.4
+76.6
+384.1
+43,953.9
+17,407.7
+80,910.0
+Amortised cost
+Fair value
+through other
+comprehensive
+income
+Total
+Fair value through
+profit or loss
+* in Million
+Mutual Funds - unquoted
+Government securities - unquoted (10,000)
+Bonds/debentures - unquoted
+Bonds/debentures - quoted
+Equity instruments - unquoted
+Equity instruments - quoted
+Investments
+As at March 31, 2017
+Financial assets
+67.1
+599.9
+Mandatorily measured:
+Other financial assets
+Derivatives designated as hedges
+Interest accrued on investments loans
+Interest accrued on investments / balances with banks
+Bank balances other than Cash and cash equivalents
+Cash and cash equivalents
+Bank deposits with more than 12 months maturity
+Security deposits
+Total
+Trade receivables
+Loans to related parties
+Others - unquoted
+Mutual Funds - unquoted
+Government securities - unquoted (10,000)
+Government securities - quoted
+Bonds/debentures - quoted
+Equity instruments - unquoted
+Equity instruments - quoted
+Loans to employees/others
+0.2
+Derivatives not designated as hedges
+Year ended
+March 31, 2017
+21,024.3
+1,679.3
+22,703.6
+86,628.0
+64,780.4
+532.9
+4,589.2
+72,026.1
+454.0
+10,434.9
+2,078.7
+608.5
+0.0
+870.7
+560.1
+Fair value through
+profit or loss
+293.2
+Amortised cost
+in Million
+income
+As at March 31, 2017
+Fair value
+through other
+comprehensive
+782.6
+22,070.4
+21,287.8
+Year ended
+March 31, 2016
+* in Million
+2,472.7
+5,576.1
+5,576.1
+1,256.2
+235.5
+1 - 3 years
+Less than 1
+year
+The table below provides details regarding the contractual maturities of undiscounted significant financial liabilities as at March 31, 2016:
+244.0
+148,009.1
+1,482.4
+13,929.4
+5,512.6
+1,048.0
+43,953.9
+43,953.9
+4,464.6
+132,597.3
+244.0
+98,542.6
+1,482.4
+12,881.4
+84,178.8
+Derivatives
+Other financial liabilities
+More than 3
+years
+* in Million
+Total As at
+March 31, 2016
+Non derivative
+CORPORATE OVERVIEW 01-07
+216.1
+216.1
+127,556.9
+1,613.7
+31,369.2
+94,574.0
+6,696.0
+Trade payables
+1,842.2
+1,613.7
+29,527.0
+53,891.0
+35,829.2
+4,853.8
+236 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Derivative
+Other financial liabilities
+Trade payables
+Borrowings
+85,031.7
+35,829.2
+Borrowings
+Non derivative
+Total As at
+March 31, 2017
+Recoveries
+Addition
+Balance at the beginning of the year
+Movement in the expected credit loss allowance on Trade receivables
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+Balance at the end of the year
+ANNUAL REPORT 2016-17 235
+69,712.3
+2,355.0
+2,689.5
+1,204.2
+1,671.5
+1,729.0
+2,518.0
+74,136.0
+48,763.9
+65,351.3
+52,323.1
+STATUTORY REPORTS
+Year ended
+Year ended
+* in Million
+More than 3
+years
+1 - 3 years
+Less than 1
+year
+The table below provides details regarding the contractual maturities of undiscounted significant financial liabilities as at March 31, 2017:
+The Group had unutilised credit limit/undrawn borrowing facilities from banks of ₹ 62,162.2 Million as on March 31, 2017, 32,401.2
+Million as on March 31, 2016, 33,533.8 Million as on April 01, 2015.
+Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group manages its liquidity
+risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
+conditions, without incurring unacceptable losses or risk to the Group's reputation.
+Liquidity risk
+* in Million
+1,955.7
+(968.2)
+(163.9)
+1,528.3
+318.1
+1,395.6
+1,955.7
+March 31, 2016
+March 31, 2017
+2,109.9
+08-79 FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Trade receivables
+Cash and cash equivalents
+Borrowings
+Trade payables
+Trade receivables
+Cash and cash equivalents
+PHARMA
+Borrowings
+* in Million
+As at
+March 31, 2016
+Russian
+South
+US Dollar
+Euro
+Rouble African Rand
+Trade payables
+Japanese
+Yen
+SUN
+45,132.9
+Japanese
+Total
+Yen
+8.3
+449.2
+21,561.4
+2,759.9
+5,034.1
+457.5
+24,321.3
+ANNUAL REPORT 2016-17 237
+38,296.9
+4,990.1
+1,386.1
+43,287.0
+1,386.1
+0.3
+0.3
+161.4
+161.4
+298.1
+298.1
+6,836.0
+38,296.9
+69,889.0
+Total
+March 31, 2017
+Russian
+South
+Rouble African Rand
+1,727.1 5,034.1
+352.3
+2,079.4
+10.2
+1,563.2
+4,817.1
+113,561.4
+5,322.6
+32,430.3
+89,961.3
+1,058.4
+12,588.9
+76,314.0
+Total As at
+April 01, 2015
+32,440.5
+in Million
+1 - 3 years
+More than 3
+Less than 1
+year
+Derivatives
+Other financial liabilities
+Borrowings
+Non derivative
+The table below provides details regarding the contractual maturities of undiscounted significant financial liabilities as at April 01, 2015:
+years
+12,033.9
+6,380.3
+1,058.4
+1,994.9
+822.8
+2,817.7
+12,797.0
+1,135.6
+13,932.6
+Euro
+US Dollar
+Trade payables
+Borrowings
+Cash and cash equivalents
+Trade receivables
+14,162.3
+253.5
+* in Million
+a) Significant foreign currency risk exposure relating to trade receivables, cash and cash equivalents, borrowings and trade payables
+The Group's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in US Dollar, Euro,
+South African Rand and Russian Rouble) and foreign currency borrowings (primarily in US Dollar). As a result, if the value of the Indian Rupee
+appreciates relative to these foreign currencies, the Group's revenues and expenses measured in Indian Rupees may decrease or increase and
+vice-versa. The exchange rate between the Indian rupee and these foreign currencies has changed substantially in recent periods and may
+continue to fluctuate substantially in the future. Consequently, the Group uses both derivative and non-derivative financial instruments, such
+as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate the risk
+of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognised assets and liabilities.
+Foreign exchange risk
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and
+prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as
+a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all
+foreign currency receivables and payables and all short term and long-term debt. The Group is exposed to market risk primarily related to
+foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Group's exposure to market risk is a function
+of investing and borrowing activities and revenue generating and operating activities in foreign currencies.
+65.7
+Market risk
+5,576.1
+128,782.1
+As at
+in Million
+As at
+April 01, 2015
+Trade payables
+March 31, 2017
+1,255.4
+5,982.2
+67.1
+1,322.5
+901.7
+217.4
+26.6
+244.0
+STATUTORY REPORTS
+08-79
+608.5
+FINANCIAL STATEMENTS 80-278
+FOR THE YEAR ENDED MARCH 31, 2017
+* in Million
+Level 1
+As at March 31, 2016
+Level 2
+Level 3
+Financial assets and liabilities measured at fair value-recurring fair value measurements
+Financial assets
+Investments
+Equity instruments - quoted
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+Equity instruments - unquoted
+293.2
+560.1
+The investments which are fair valued through other comprehensive income, are not held for trading. Instead, they are held for medium or
+long-term strategic purpose. Upon the application of Ind AS 109, the Group has chosen to designate these investments in equity instruments
+as at fair value through other comprehensive income as the management believe that this provides a more meaningful presentation for
+medium or long-term strategic investments, than reflecting changes in fair value immediately in consolidated statement of profit and loss.
+There were no transfers between Level 1 and 2 in the period.
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS
+NOTES TO THE CONSOLIDATED
+PHARMA
+SUN
+233
+ANNUAL REPORT 2016-17
+2,078.7
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of
+unquoted investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents
+estimate of fair value within that range.
+4,528.6
+128,542.9
+in Million
+Level 1
+As at March 31, 2017
+Level 2
+Level 3
+2,472.7
+870.7
+1,226.8
+The management considers that the carrying amount of financial assets and financial liabilities carried as amortised cost approximates their
+fair value.
+Bonds/debentures - quoted
+Others - unquoted
+Derivative not designated as hedges
+Financial liabilities
+Derivatives not designated as hedges
+Others unquoted
+Mutual funds - unquoted
+Bonds/debentures - quoted
+Equity instruments - unquoted
+Equity instruments - quoted
+8,505.2
+Investments
+Level 3
+As at April 01, 2015
+Level 2
+Level 1
+in Million
+216.1
+216.1
+544.1
+1,534.6
+12,760.5
+Financial assets and liabilities measured at fair value-recurring fair value measurements
+Financial assets
+Mutual funds - unquoted
+2,883.4
+443.6
+Derivatives not designated as hedges
+Financial liabilities
+Derivative not designated as hedges
+6,211.5
+872.1
+5,676.9
+306.2
+237.9
+1,534.6
+19,925.7
+March 31, 2016
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or
+indirectly.
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement
+date.
+5,576.1
+5,576.1
+498.6
+1,946.2
+31,314.3
+1,946.2
+55.0
+Level 3 inputs are unobservable inputs for the asset or liability.
+Reconciliation of Level 3 fair value measurements
+CORPORATE OVERVIEW 01-07
+Balance at the beginning of the year
+Trade receivables
+The Group has used expected credit loss (ECL) model for assessing the impairment loss. For this purpose, the Group uses a provision matrix
+to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of
+credit losses from various customers.
+Financial assets for which loss allowances is measured
+using the expected credit loss
+Trade receivables
+less than 180 days
+180 - 365 days
+beyond 365 days
+Total
+As at
+As at
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+5.5%
+1.1%
+308,926.4
+17,076.2
+4,216.2
+370,677.3
+The Group limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good
+credit rating. The Group does not expect any losses from non-performance by these counter-parties, and does not have any significant
+concentration of exposures to specific industry sectors or specific country risks.
+404,305.3
+Investments
+Credit risk
+b) Dividend on Equity shares paid during the year
+March 31, 2017
+in Million
+March 31, 2016
+FOR THE YEAR ENDED MARCH 31, 2017
+Dividend on equity shares
+Final dividend for the year ended March 31, 2016 of 1.0 (Previous year for year ended
+March 31, 2015: 3.0) per fully paid share
+2,406.8
+7,219.5
+Dividend distribution tax on above
+490.0
+1469.7
+Dividends not recognised at the end of the reporting period
+The Board of Directors at its meeting held on May 26, 2017 have recommended payment of final dividend of 3.5 per share of face value of 1 each for the year
+ended March 31, 2017. The same amounts to ₹8,397.6 Million.
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and hence not recognised as liability.
+Note 47
+FINANCIAL RISK MANAGEMENT
+The Group's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Group's risk management
+assessment and policies and processes are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and
+controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed
+regularly to reflect changes in market conditions and the Group's activities.
+Unlisted shares valued at fair value
+Credit risk is the risk of financial loss to the Group, if a customer or counterparty to a financial instrument fails to meet its contractual
+obligations and arises principally from the Group's receivables from customers, loans and investments. Credit risk is managed through credit
+approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Group grants credit terms
+in the normal course of business.
+11,689.7
+2.9%
+80,751.4
+(163.8)
+(6.8)
+901.7
+72,645.9
+(98.4)
+179.5
+462.8
+498.6
+544.1
+Year ended
+March 31, 2016
+544.1
+Year ended
+March 31, 2017
+- to ensure the Group's ability to continue as a going concern; and
+The Group's capital management objectives are:
+a)
+CAPITAL MANAGEMENT
+Note 46
+Balance at the end of the year
+Disposal / settlements
+Foreign currency translation difference
+Purchases
+in Million
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+29.8
+As at
+86,628.0
+89,722.1
+* in Million
+As at
+April 01, 2015
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+234
+Net debt to total equity ratio
+Total equity
+The Group monitors capital on the basis of the carrying amount of debt less cash and cash equivalents as presented on the face of the
+consolidated financial statements. The Group's objective for capital management is to maintain an optimum overall financial structure.
+Less: cash and cash equivalents
+Net debt
+84,967.6
+March 31, 2017
+As at
+March 31, 2016
+98,317.7
+Debt (includes non-current borrowings, current borrowings, current maturities
+of finance lease obligations and current maturities of long term debt)
+(i) Group as lessee
+209.2
+203.3
+later than five years
+840.1
+648.1
+later than one year and not later than five years
+(c) Lease receipts/payments are recognised in the consolidated statement of profit and loss under "Lease Rental and Hire Charges" and
+"Rent" in Note 32 and Note 37.
+(ii) Group as lessor
+(d) Operating lease
+596.3
+386.2
+Year ended
+March 31, 2017
+in Million
+Year ended
+March 31, 2016
+not later than one year
+The future minimum lease payments under non-cancellable operating lease
+The future minimum lease payments under non-cancellable operating lease
+not later than one year
+133.5
+265.4
+223.7
+later than five years
+397.1
+492.1
+(ii) Group as lessor
+The future minimum lease payments under non-cancellable finance lease
+not later than one year
+later than one year and not later than five years
+later than five years
+later than one year and not later than five years
+Less: Unearned Finance Income
+not later than one year
+later than one year and not later than five years
+later than five years
+46.8
+165.8
+(b) The Group has obtained certain premises for its business operations (including furniture and fittings, therein as applicable) under
+operating lease or leave and license agreements. These are generally not non-cancellable and range between 11 months to 10 years
+under leave and licenses, or longer for other lease and are renewable by mutual consent on mutually agreeable terms. The Group has
+given refundable interest free security deposits in accordance with the agreed terms. These refundable security deposits have been
+valued at amortised cost under relevant Ind AS.
+716.2
+539.5
+10.6
+28.3
+Present value of minimum lease payments receivable
+not later than one year
+32.7
+Present value of minimum lease payments payable
+28.0
+later than one year and not later than five years
+532.9
+107.9
+later than five years
+58.3
+67.6
+(e) Finance lease
+(i) Group as lessee
+The future minimum lease payments under non-cancellable finance lease
+39.5
+not later than one year
+134.6
+later than one year and not later than five years
+433.2
+569.5
+later than five years
+494.6
+654.5
+Less: Unearned Finance Charges
+360.3
+610.1
+134.5
+(a) The Group has given certain premises and Plant and Machinery under operating lease or leave and license agreements. These are
+generally not non-cancellable and periods range between 11 months to 10 years under leave and license / lease and are renewable by
+mutual consent on mutually agreeable terms. The Group has received refundable interest free security deposits, where applicable, in
+accordance with agreed terms.
+4.
+Note 55
+As at
+As at
+March 31, 2017
+81,776.7
+March 31, 2016
+71,500.9
+in Million
+As at
+April 01, 2015
+56,604.9
+24,900.1
+19,897.1
+15,259.9
+8,178.9
+6,853.5
+6,639.0
+25,892.5
+28,057.5
+27,089.5
+140,748.2
+126,309.0
+105,593.3
+The unused tax credits will expire from financial year 2017-18 to financial year 2023-24 and unused tax losses expiry ranges from financial
+year 2017-18 to 2032-33. In case of certain overseas subsidiaries which have tax losses and unused tax credits, the amount is not material
+and there is no expiry period for tax losses and unused tax credits.
+ANNUAL REPORT 2016-17 243
+SUN
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Deductible temporary differences
+Note 52
+Unused tax credits (including MAT credit entitlement)
+Tax losses
+350.4
+during the balance March
+Year*
+31, 2017
+787.1
+2,891.6
+3,678.7
+415.3
+1,202.4
+(415.3)
+2,476.3
+3,678.7
+126.5
+342.9
+469.4
+48.2
+13.2
+61.4
+174.7
+356.1
+530.8
+1,027.7
+2,120.2
+3,147.9
+* Movement during the year includes foreign currency translation difference amounting to ₹ 1,182.9 Million (gain) and 669.2 Million
+(loss) for the year ended March 31, 2016 and March 31, 2017 respectively and deferred tax on remeasurements of defined benefit plans
+amounting to 42.2 Million and 98.8 Million for the year ended March 31, 2016 and March 31, 2017 respectively, recognised in OCI.
+iii) Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been
+recognised are attributable to the following:
+Unabsorbed depreciation
+EARNINGS PER SHARE
+Profit for the year (in Million) - used as numerator for calculating earnings per share
+Weighted Average number of shares used in computing basic earnings per share
+Add: Dilution effect of employee stock options
+Weighted average number of shares used in computing diluted earnings per share
+India
+80,610.1
+77,844.6
+United States of America
+138,823.6
+136,724.7
+Emerging markets
+49,074.2
+39,075.5
+Rest of world
+34,134.4
+25,235.9
+302,642.3
+278,880.7
+In view of the interwoven / intermix nature of business and manufacturing facility, other segmental information is not ascertainable.
+Concentration of Revenues from two customers of the Group were 35.7% and 30.9% of total revenue for the year ended March 31, 2017
+and March 31, 2016 respectively.
+Note 54
+Other intangible assets consisting of trademarks, designs, technical knowhow, licences, non-compete fees and other intangible assets
+are stated at cost of acquisition based on their agreements. The amortisable amount of intangible assets is arrived at, based on the
+management's best estimates of useful lives of such assets after due consideration as regards their expected usage, the product life cycles,
+technical and technological obsolescence, market demand for products, competition and their expected future benefits to the Group.
+244 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Revenue by Geography
+Year ended
+March 31, 2016
+Year ended
+March 31, 2017
+* in Million
+Nominal value per share (in ₹)
+Basic Earnings Per Share (in)
+Diluted Earnings Per Share (in ₹)
+Year ended
+March 31, 2017
+69,643.7
+2,403,319,673
+203,455
+Year ended
+March 31, 2016
+45,457.1
+2,406,379,179
+1,059,730
+2,403,523,128
+2,407,438,909
+1
+29.0
+LEASES
+1
+29.0
+18.9
+Note 53
+SEGMENT REPORTING
+The Chief Operating Decision Maker ('CODM') evaluates the Group's performance and allocates resources based on an analysis of various
+performance indicators by reportable segments. The Group's reportable segments are as follows:
+1. India
+2.
+United States
+3.
+Emerging Markets
+Rest of the World
+The reportable segments derives their revenues from the sale of pharmaceuticals products (generics, speciality, API, etc.). The CODM
+reviews revenue as the performance indicator. The measurement of each segment's revenues, expenses and assets is consistent with the
+accounting policies that are used in preparation of the Group's consolidated financial statements.
+18.9
+ANNUAL REPORT 2016-17
+Actuarial (Gains)/Losses on obligations
+SUN
+Actuarial gain
+Employer's Contribution during the year
+Employees' Contributions during the year
+Benefits paid
+Funds transferred to regional provident fund
+Plan assets as at the year end
+* in Million
+March 31, 2016
+Gratuity
+(Funded)
+March 31, 2017
+Provident
+Provident
+Gratuity
+Fund
+(Funded)
+(Funded)
+Fund
+(Funded)
+3,671.9
+(2,348.7)
+4,598.6
+(4,632.8)
+2,708.4
+(2,131.2)
+(34.2)
+1,323.2
+577.2
+4,632.8
+598.5
+2,131.2
+160.9
+Plan assets transferred
+Assets transferred in/ Acquisitions
+Expected return
+Plan assets as at the beginning of the year
+(253.0)
+net of accumulated unrecognised gains
+Closing
+due to change in demographic assumptions
+due to change in financial assumptions
+due to experience
+Obligation as at the year end
+54.5
+1.7
+969.5
+16.4
+623.3
+86.7
+3,671.9
+(14.6)
+31.0
+(70.7)
+930.7
+4,806.5
+385.5
+299.3
+4,598.6
+2,708.4
+ANNUAL REPORT 2016-17 247
+SUN
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Reconciliation of liability/(asset) recognised in the
+consolidated balance sheet
+Present value of commitments (as per Actuarial Valuation)
+Fair value of plan assets
+Excess of planned assets over commitments not recognised
+Net liability recognised in the consolidated balance sheet
+Reconciliation of plan assets
+154.9
+28.9
+(588.1)
+1,867.6
+146.5
+1.8
+Expected rate of salary
+increase
+N.A. In range of 7.00% to
+N.A.
+7.56%
+10.00%
+N.A.
+Interest rate guarantee
+Mortality
+N.A.
+14.50%
+N.A.
+N.A.
+Withdrawal
+Retirement Age (years)
+N.A.
+8.00%
+58 to 60
+* During the year, the Provident fund balance which was managed by Parent has been transferred to Regional Provident Fund authority.
+Indian Assured Lives Indian Assured Lives Indian Assured Lives
+Mortality (2006-08) Mortality (2006-08) Mortality (2006-08)
+N.A. In range of 1.00% to
+N.A.
+Indian Assured Lives
+Morality (2006-08)
+N.A.
+8.80%
+Indian Assured Lives
+Mortality (2006-08)
+15%-18%
+13.50%
+58 to 60
+N.A.
+60
+7.74%
+8.80%
+In range of 7.54% to
+N.A.
+28.9
+18.0
+248.4
+11.3
+358.8
+(507.6)
+(4,725.5)
+(227.2)
+(588.1)
+(253.0)
+2,348.7
+4,632.8
+2,131.2
+17.4
+Year ended March 31, 2017
+Pension Fund
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+Year ended March 31, 2016
+Gratuity
+(Funded)
+Provident Fund
+(Funded)*
+Discount rate
+Expected return on plan
+assets
+6.81% In range of 6.81% to
+7.74%
+N.A. In range of 6.81% to
+7.54% In range of 7.54% to
+7.54%
+7.56%
+(Unfunded)
+245
+(88.0)
+1.8
+(507.6)
+(4,685.4)
+ii)
+Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by reference
+to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will
+create a plan deficit. However, the risk is partially mitigated by investment in LIC managed fund.
+Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an
+increase in the return on the plan's debt investments.
+246
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79 FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality
+of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase
+the plan's liability.
+iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
+participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
+Other long term benefit plan
+Actuarial Valuation for Compensated Absences is done as at the year end and the provision is made as per the Parent and Indian subsidiaries
+rules with corresponding charge to the Consolidated Statement of Profit and Loss amounting to ₹499.3 Million (Previous Year * 465.2
+Million) and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as at the year end using
+the 'Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating to defined benefit obligation are recognised
+in other comprehensive income whereas gains and losses in respect of other long term employee benefit plans are recognised in the
+consolidated statement of profit and loss.
+* in Million
+Year ended March 31, 2017
+Year ended March 31, 2016
+Pension Fund Provident Gratuity Pension Fund Provident Gratuity
+(Unfunded) Fund (Funded) (Funded) (Unfunded) Fund (Funded)
+(Funded)
+Expense recognised in the consolidated statement
+of profit and loss (Refer note 35)
+Current service cost
+242.4
+Interest cost
+70.2
+i)
+These plans typically expose the Parent and Indian subsidiaries to actuarial risks such as: investment risk, interest rate risk, longevity risk
+and salary risk.
+The Parent and Indian subsidiaries has an obligation towards pension, a defined benefit retirement plan, with respect to certain
+employees, who had already retired before March 01, 2013, will continue to receive the pension as per the pension plan.
+b) Pension fund
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 56
+EMPLOYEE BENEFITS
+Defined contribution plan
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employee State Insurance Corporation (ESIC) and other
+Funds which covers all regular employees of the parent and Indian subsidiaries. While both the employees and parent and Indian subsidiaries
+make predetermined contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund and other statutory funds are
+made only by the parent and Indian subsidiaries. The contributions are normally based on a certain percentage of the employee's salary.
+Amount recognised as expense in respect of these defined contribution plans, aggregate to ₹ 773.2 Million (Previous Year 730.0 Million).
+Contribution to Provident Fund and Family Pension Fund
+Contribution to Superannuation Fund
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+Year ended
+592.6
+March 31, 2017
+in Million
+Year ended
+March 31, 2016
+613.3
+74.9
+90.3
+29.3
+26.3
+0.2
+0.1
+The Parent and Indian subsidiaries has an obligation towards provident fund with respect to certain employees upto March 31, 2015 which
+was recognised as defined benefit plan. From the previous year the contribution for the same is made to RPF and the Parent and Indian
+subsidiaries does not have any obligation apart from such contribution. Accordingly, from previous year, the provident fund is recognised as
+defined contribution plan.
+Defined benefit plan
+a) Gratuity
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund Scheme. It is governed
+by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or
+termination of the employment on completion of five years or death while in employment. The level of benefit provided depends on the
+member's length of service and salary at the time of retirement/termination age. Provision for Gratuity is based on actuarial valuation
+done by an independent actuary as at the year end. Each year, the Parent and Indian subsidiaries reviews the level of funding in gratuity
+fund. The Parent and Indian subsidiaries decides its contribution based on the results of its annual review. The Parent and Indian
+subsidiaries aims to keep annual contributions relatively stable at a level such that the fund assets meets the requirements of gratuity
+payments in short to medium term.
+668.8
+(227.2)
+Expected return on plan assets
+204.5
+(160.9)
+428.3
+income
+Reconciliation of defined-benefit obligations
+Obligations as at the beginning of the year
+930.7
+4,598.6
+2,708.4
+981.8
+4,810.2
+Current service cost
+Interest cost
+70.2
+592.6
+242.4
+204.5
+76.6
+347.6
+2,142.1
+211.4
+168.3
+Liability transferred in/ Acquisitions
+17.4
+Obligations transferred
+Benefits paid
+(87.6)
+Obligation transferred to regional provident fund,
+(39.7)
+708.4
+56.2
+Expense/(income) charged to other comprehensive
+76.6
+347.6
+(385.5)
+211.4
+168.3
+(146.5)
+Recognition of unrecognised liabilities of earlier
+3.7
+years
+Excess of planned assets over commitments not
+5.9
+34.2
+recognised in Financial statements
+Expense charged to the consolidated statement of
+profit and loss
+(598.5)
+70.2
+76.6
+233.2
+Remeasurement of defined benefit obligation
+recognised in other comprehensive income
+Actuarial loss / (gain) on defined benefit obligation
+Return on plan assets
+56.2
+726.4
+(39.7)
+439.6
+(18.0)
+(11.3)
+286.0
+Movement
+9,137.7
+* in Million
+As at
+March 31, 2016
+23,729.6
+425.3
+430.4
+119.0
+119.8
+12,295.6
+12,556.5
+in Million
+As at
+April 01, 2015
+22,683.2
+427.4
+127.2
+11,849.6
+1,331.4
+17,295.8
+17.699.3
+16,681.1
+117.0
+358.9
+366.6
+345.9
+Basics GmbH
+311.9
+338.7
+301.1
+As at
+March 31, 2017
+23,273.5
+Ranbaxy Pharmaceuticals, Inc.
+Ranbaxy Farmaceutica Ltda.
+S.C Terapia S.A.
+ZAR 42.5
+USD
+Sell
+HUF
+USD 5.9
+The Group has loan facilities on floating interest rate, which exposes the Group to risk of changes in interest rates. The Parent Company's
+Treasury Department monitors the interest rate movement and manages the interest rate risk by evaluating interest rate swaps etc. based on
+the market / risk perception.
+For the year ended March 31, 2017 and March 31, 2016, every 50 basis point decrease in the floating interest rate component applicable to
+its loans and borrowings would increase the Group's profit before tax by approximately 196.2 Million and 257.8 Million respectively. A 50
+basis point increase in floating interest rate would have led to an equal but opposite effect.
+Commodity rate risk
+Exposure to market risk with respect to commodity prices primarily arises from the Group's purchases and sales of active pharmaceutical
+ingredients, including the raw material components for such active pharmaceutical ingredients. These are commodity products, whose prices
+may fluctuate significantly over short periods of time. The prices of the Group's raw materials generally fluctuate in line with commodity
+cycles, although the prices of raw materials used in the Group's active pharmaceutical ingredients business are generally more volatile. Cost
+of raw materials forms the largest portion of the Group's cost of revenues. Commodity price risk exposure is evaluated and managed through
+operating procedures and sourcing policies. As of March 31, 2017, the Group had not entered into any material derivative contracts to hedge
+exposure to fluctuations in commodity prices.
+ANNUAL REPORT 2016-17 239
+SUN
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 48
+GOODWILL (NET):
+Goodwill acquired in business combination is allocated, at acquisition, to the Cash Generating Units (CGUS) that are expected to benefit from
+that business combination. The carrying amount of goodwill has been allocated as follows:
+(i) Goodwill in respect of:
+Sun Pharmaceutical Industries, Inc.
+Sun Farmaceutica do Brasil Ltda.
+Sun Pharma Japan Ltd.
+Taro Pharmaceutical Industries Ltd.
+Ranbaxy Pharmaceutical Proprietary Limited
+Ranbaxy Ireland Limited
+290.0
+296.5
+281.3
+469.4
+57,662.9
+469.4
+56,065.4
+1,152.5
+1,229.2
+1,149.5
+1.4
+1.5
+1.4
+27.5
+27.5
+27.5
+56.1
+57.3
+41.0
+1,237.5
+55,362.2
+1,315.5
+56,347.4
+1,219.5
+54,845.9
+As at
+March 31, 2017
+* in Million
+As at
+March 31, 2016
+54,845.9
+Opening balance
+1.0
+469.4
+56,599.7
+(ii) Below is the reconciliation of the carrying amount of goodwill:
+Total (A-B)
+Total (B)
+Insite Vision Incorporated
+435.3
+445.0
+Ranbaxy Italia S.p.A
+239.3
+Sun Pharma Medisales Private Limited (Formerly known as Solrex
+1,208.0
+1,208.0
+1,208.0
+Pharmaceuticals Company)
+Ranbaxy South Africa Proprietary Limited
+INR
+JSC Biosintez
+3.1
+3.5
+Sun Pharmaceuticals Medicare Limited
+Gufic Pharma Limited
+Total (A)
+Less:
+Capital Reserve in respect of :
+Alkaloida Chemical Company Zrt.
+Ranbaxy Nigeria Limited
+Ranbaxy Drugs Limited
+Ranbaxy Malaysia Sdn. Bhd.
+3.4
+112.6
+Sell
+ZAR
+USD 24.9
+Forward contracts
+USD
+Buy
+INR
+USD 22.5
+USD 140.0
+USD 14.0
+USD 350.0
+USD 170.0
+Forward contracts
+AUD
+Sell
+USD
+USD 1.3
+Forward contracts
+RUB
+Sell
+USD
+USD 12.0
+Currency cum interest rate swaps
+USD
+Buy
+INR
+USD 50.0
+INR
+Sell
+USD
+Forward contracts
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+a component of revenue, loss of 559.7 Million for year ended March 31, 2017 and Nil for year ended March 31, 2016 due to
+occurrence of forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and liabilities in foreign
+currencies, and for which no hedge accounting is applied, are recognised in consolidated statement of the profit and loss account. The
+changes in fair value of the forward contracts and option contracts, as well as the foreign exchange gains and losses relating to the
+monetary items, are recognised in consolidated statement of the profit and loss.
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts:
+Currency
+Buy / Sell
+Cross
+Currency
+USD 50.0
+As at
+As at
+March 31, 2017 March 31, 2016
+Derivatives designated as hedges
+Forward contracts
+ZAR
+Sell
+USD
+Forward contracts
+USD
+Buy
+JPY
+USD 22.0
+USD 19.5
+Derivatives not designated as hedges
+Amount in Million
+As at
+April 01, 2015
+Add: Due to acquisitions during the year
+USD 100.0
+USD
+PLN 1.7
+RUB
+Sell
+RON
+RUB 62.6
+USD
+Buy
+INR
+USD 30.0
+USD
+Sell
+NIS
+USD 0.7
+USD 26.1
+Forward contracts
+Forward contracts
+Forward contracts
+* Structured options @ 2 to 2.5 times
+Interest rate risk
+USD
+Sell
+CAD
+USD 2.1
+RON
+Sell
+PLN
+USD 6.7
+Buy
+INR
+USD 100.0
+USD 100.0
+USD 100.0
+Currency options*
+USD
+Sell
+INR
+USD 1.0
+USD 71.0
+Currency options
+Interest rate swaps
+Buy
+INR
+USD 150.0
+USD 40.0
+Interest rate swaps
+Forward contracts
+Forward contracts
+Currency swaps
+Forward contracts
+USD
+Sell
+USD
+USD
+Less: Impairment/write off (Refer note 62)
+Add/ (Less): Foreign currency translation difference
+Closing balance
+56,347.4
+113.6
+6,031.5
+6,142.4
+(2,572.8)
+3,569.6
+2,954.7
+(103.7)
+2,851.0
+Others
+1,562.3
+(110.1)
+1,452.2
+27,911.4
+(6,015.5)
+21,895.9
+MAT Credit Entitlement
+7,517.0
+7,517.0
+35,428.4
+(6,015.5)
+29,412.9
+Less Deferred Tax Liabilities
+Difference between written down value of property plant and equipment and capital
+work-in-progress as per books of accounts and income tax
+3,246.6
+1,623.0
+4,408.5
+Intangible assets
+Unabsorbed depreciation / carried forward losses
+Inventory and other related items
+3,299.9
+(53.3)
+3,246.6
+Others
+694.7
+3,994.6
+27,172.1
+(2.8)
+(56.1)
+4,317.8
+691.9
+3,938.5
+31,489.9
+DEFERRED TAX ASSETS (Net)
+in Million
+1,060.3
+Opening
+Closing
+balance April
+during the balance March
+01, 2016
+Year *
+31, 2017
+Deferred Tax Assets
+Expenses claimed for tax purpose on payment basis
+12,843.5
+(4,851.9)
+7,991.6
+Movement
+Difference between written down value of property plant and equipment and capital
+work-in-progress as per books of accounts and income tax
+4,306.9
+691.9
+387.6
+1,202.4
+Less Deferred Tax Assets
+Expenses claimed for tax purpose on payment basis
+62.5
+64.0
+126.5
+Others
+0.9
+47.3
+48.2
+63.4
+111.3
+174.7
+751.4
+276.3
+1,027.7
+DEFERRED TAX LIABILITIES (Net)
+Deferred Tax Liabilities
+Difference between written down value of property plant and equipment and capital
+work-in-progress as per books of accounts and income tax and others
+Undistributed profits
+Less Deferred Tax Assets
+Expenses claimed for tax purpose on payment basis
+Others
+814.8
+415.3
+415.3
+787.1
+3,938.5
+(514.1)
+546.2
+177.8
+4,484.7
+31,489.9
+(6,561.7)
+24,928.2
+242 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79 FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+Others
+FINANCIAL STATEMENTS
+ii) DEFERRED TAX LIABILITIES (Net)
+in Million
+Opening
+balance April
+01, 2015
+Movement
+Closing
+Year*
+during the balance March
+31, 2016
+Deferred Tax Liabilities
+Difference between written down value of property plant and equipment and capital
+work-in-progress as per books of accounts and income tax and others
+Undistributed profits
+814.8
+(27.7)
+FOR THE YEAR ENDED MARCH 31, 2017
+Opening
+balance April
+01, 2016
+Less Deferred Tax Liabilities
+4,261.7
+34.608%
+Income tax expense calculated at enacted corporate tax rate
+31,312.9
+22,739.6
+Effect of income that is exempt from tax
+(8,605.7)
+(6,395.7)
+Effect of expenses that are not deductible in determining taxable profit
+152.3
+448.2
+Incremental deduction allowed on account of research and development costs
+Investment allowance deduction
+(4,927.9)
+(4,901.0)
+(295.1)
+(265.1)
+Effect of income which is taxed at special rates
+25.1
+54.5
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+Effect of difference between Indian and foreign tax rates and non taxable subsidiaries
+Effect of deferred tax expense on undistributed profits
+5,193.2
+(12,658.7)
+5,164.4
+(9,608.1)
+415.3
+34.608%
+65,706.3
+90,478.7
+March 31, 2016
+(1,098.8)
+55,362.2
+688.7
+(1,942.3)
+2,755.1
+56,347.4
+The carrying amount of goodwill are stated above. The recoverable amounts have been determined based on value in use calculations
+which uses cash flow projections covering generally a period of five years (which are based on key assumptions such as margins, expected
+growth rates based on past experience and Management's expectations/ extrapolation of normal increase/ steady terminal growth rate)
+and appropriate discount rates that reflects current market assessments of time value of money and risks specific to these investments. The
+cash flow projections included estimates for five years developed using internal forecasts and terminal growth rate thereafter. The planning
+horizon reflects the assumptions for short to mid-term market developments. The average growth rate used in extrapolating cash flows
+beyond the planning period ranged from 1% to 2% for the year ended March 31, 2017, March 31, 2016 and April 01, 2015. Discount rate
+240 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+415.3
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated on the weighted
+average cost of capital for respective CGU or group of CGUs. Discount rate used ranged from 4% to 11.9% for the year ended March 31,
+2017, March 31, 2016 and April 01, 2015. The management believes that any reasonable possible change in key assumptions on which
+recoverable amount is based is not expected to cause the aggregate carrying amount to exceed the aggregate recoverable amount of the
+cash generating unit. However, based on the impairment assessment, the Management has determined that in respect of certain subsidiaries,
+an impairment loss considering the above criteria/ factors aggregating to Nil (March 31, 2016: 1,942.3 Million) in the value of goodwill
+has been recognised.
+Note 49
+RELATED PARTY DISCLOSURES (IND AS-24) AS PER ANNEXURE 'B'
+Note 50
+INCOME TAXES
+Tax Reconciliation
+Reconciliation of tax expense
+Profit before tax
+Enacted income tax rate in India (%)
+Year ended
+March 31, 2017
+in Million
+Year ended
+FOR THE YEAR ENDED MARCH 31, 2017
+35,428.4
+Tax payable under MAT
+Income tax expense recognised in consolidated statement of profit and loss
+9,756.7
+3,086.8
+12,843.5
+4,019.2
+389.3
+4,408.5
+5,327.6
+814.8
+6,142.4
+3,282.9
+(328.2)
+2,954.7
+Others
+1,263.3
+299.0
+1,562.3
+23,649.7
+4,261.7
+27,911.4
+MAT Credit Entitlement
+7,517.0
+7,517.0
+31,166.7
+Intangible assets
+Inventory and other related items
+Unabsorbed depreciation/carry forward losses
+Expenses claimed for tax purpose on payment basis
+2,100.0
+(595.7)
+1,485.6
+12,115.7
+248 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+ANNUAL REPORT 2016-17 241
+SUN
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 51
+Others
+DEFERRED TAX
+DEFERRED TAX ASSETS (Net)
+* in Million
+Opening
+Movement
+Closing
+balance April
+during the balance March
+01, 2015
+Year *
+31, 2016
+Deferred Tax Asset
+i)
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+0.9
+0.2
+1.1
+6.3
+6.3
+40,259
+6.3
+6.3
+169,913
+6.3
+# Shares allotted by the ESOP Trust against the options exercised including 1,066 shares equivalent to 1,333 shares issued by Erstwhile RLL prior to April 10, 2015.
+^ Weighted average share price on the date of exercise * 848.68.
+6.3
+$ Include options exercised, pending allotment.
+Exercisable at the end of the year $
+Outstanding, end of the year
+Lapsed during the year
+6.3
+6.3
+(224,201)
+6.3
+6.3
+(18,326)
+(43,326)
+ANNUAL REPORT 2016-17 251
+PHARMA
+The Black-Scholes option-pricing model was developed for estimating fair value of trade options that have no vesting restrictions and are
+fully transferable. Since options pricing models require use of subjective assumptions, changes therein can materiality affect fair value of the
+options. The options pricing models do not necessary provide a reliable measurable of fair value of options. The volatility in the share price is
+based on volatility of historical stock price of the erstwhile RLL for last 60 months.
+@@ Assumptions used are as applicable at the date of grant in the context of erstwhile RLL.
+462.39 (1.25 years)
+460.79 (2.25 years)
+459.16 (3.25 years)
+40.47%
+8.65% (2.25 years)
+8.71% (3.25 years)
+8.57% (1.25 years)
+1.25, 2.25 and 3.25 years
+Year ended March 31, 2015
+May 08, 2014
+0.43%
+Grant date fair value
+SUN
+Expected volatility
+Expected life of options from the date(s) of grant
+Dividend yield
+Grant Date
+Particulars
+The following table summarizes the assumptions used in calculating the grant date fair value for instrument granted in the year ended
+March 31, 2015: @@
+During the current year, the Parent Company has recorded a Stock-based employee compensation expense of 32.3 Million (Previous Year
+* 98.8 Million). The amount has been determined under a fair value method wherein the grant date fair value of the options was calculated
+by using Black Scholes pricing model.
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS
+NOTES TO THE CONSOLIDATED
+Risk free interest rate
+0.9
+6.3
+6.3
+March 31, 2016
+0.4
+1.1
+333333
+6.3
+6.3
+941
+6.3
+6.3
+Weighted-
+52,284
+6.3
+(13,435)
+6.3
+6.3
+(93,015)
+6.3
+6.3
+(11,179)
+6.3
+6.3
+Stock options
+(numbers)
+Weighted-
+Exercise prices (*) average exercise
+prices (*)
+average remaining
+455,766
+0.9
+6.3
+6.3
+4,968
+Exercised during the year #^
+Forfeited during the year
+Total Number of options outstanding
+No of options of certain overseas employees
+6.3
+6.3
+1,368
+No. of options on Account of rounding off of the fraction to the
+next higher whole number as per the merger Scheme
+1.7
+6.3
+6.3
+449,430
+Number of options - post-merger of Erstwhile RLL with the
+transferee company
+Outstanding at the commencement of the year
+(years)
+contractual life
+(b) As at March 31, 2017, the Parent Company has received an amount of 0.0 Million (7,177) towards share application money towards
+1,148 equity shares of the Parent Company. The Parent Company will allot these equity shares during the next financial year. The
+Parent Company has sufficient authorised capital to cover the allotment of these shares. Pending allotment of shares, the amounts are
+maintained in a designated bank account and are not available for use by the Parent Company.
+6.3
+As at March 31, 2016, the Parent Company has received an amount of 6.7 Million towards share application money towards 13,780
+equity shares of the Parent Company [As at April 01, 2015 149.0 Million towards 280,474 equity shares (no. of shares post merger)] at
+a premium of 6.7 Million (As at April 01, 2015: 148.7 Million). The Parent Company has alloted these equity shares during the next
+financial year. The Parent Company has sufficient authorised capital to cover the allotment of these shares. Pending allotment of shares,
+the amounts are maintained in a designated bank account and are not available for use by the Parent Company.
+Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof: * 96.1
+Million (Previous Year 171.0 Million).
+On April 10, 2015, in terms of the Scheme of Arrangement 0.8
+equity share of * 1 each (Number of Shares 334,956,764 including
+186,516 Shares held by ESOP trust) of the Parent Company has
+been allotted to the shareholders of erstwhile RLL for every 1 share
+of 5 each (Number of Shares 418,695,955 including 233,146
+shares held by ESOP trust) held by them in the share capital of
+erstwhile RLL, after cancellation of 6,967,542 shares of erstwhile
+RLL. These shares were considered for the purpose of calculation of
+earnings per share appropriately. The net effect of *982.5 Million
+being the difference between the amount recorded as share capital,
+the amount of the share capital of erstwhile RLL and cancellation of
+shares of erstwhile RLL has been reduced from Reserves.
+Pursuant to the Scheme of Arrangement u/s 391 to 394 of the
+Companies Act, 1956 for amalgamation of erstwhile RLL with
+the Parent Company as sanctioned by the Hon'ble High Court of
+Gujarat and Hon'ble High Court of Punjab and Haryana on March
+24, 2015 (effective date) all the assets, liabilities and reserves of
+erstwhile RLL were transferred to and vested in the Parent Company
+with effect from April 01, 2014, the appointed date. Erstwhile
+RLL along with its subsidiaries and associates was operating as an
+integrated international pharmaceutical organisation with business
+encompassing the entire value chain in the production, marketing
+and distribution of pharmaceutical products. The scheme was
+accordingly been given effect to in the Consolidated Financial
+Statements for the year ended March 31, 2015.
+Note 66
+The Parent Company completed buy-back of 7,500,000 equity
+shares of 1 each (representing 0.31% of total pre buy-back paid
+up equity capital) on October 18, 2016, from the shareholders on
+a proportionate basis by way of a tender offer at a price of * 900
+per equity share for an aggregate amount of 6,750.0 Million in
+accordance with the provisions of the Companies Act, 2013 and the
+SEBI (Buy Back of Securities) Regulations, 1998. This buy-back of
+equity shares was approved by the Board of Directors of the Parent
+Company at its meeting held on June 23, 2016.
+Note 65
+Remuneration to the Managing Director and the Whole-time
+Director(s) of the Parent Company for the years ended March 31,
+2015, March 31, 2016 and March 31, 2017 are higher by * 49.6
+Million, * 29.6 Million and ₹ 44.7 Million respectively than the
+amounts approved by the Central Government of India (Ministry of
+Corporate Affairs) on applications made by the Parent Company to
+approve the maximum remuneration as approved by the members
+of the Company for the three years ended March 31, 2017, in excess
+of the limits specified under Schedule V to the Companies Act,
+2013, in case of inadequacy of profits. The Parent Company has re-
+represented to the office of the Ministry of Corporate Affairs (MCA)
+for approval of remuneration within the overall limits approved by the
+members of the Parent Company for the years ended March 31, 2015
+and March 31, 2016, and that for the year ended March 31, 2017,
+applications for revision in the remuneration, as approved by the
+members of the Parent Company, has been made to the MCA. The
+responses in respect of the foregoing re-representation/applications
+for revision are awaited from the MCA. On receipt of the requisite
+approvals, the balance amount of remuneration for the aforesaid
+years, if any, as per their entitlement, shall be paid to the Managing
+Director and the Whole-time Director(s), as applicable, and the same
+shall be given effect to in the year in which the approval is received.
+Excess remuneration, if any, after final approval in respect of the re-
+representation/applications for revision is received, shall be refunded
+by the respective Managing Director and the Whole-time Director(s).
+Note 64
+d) In September 2013, the US-FDA had put the Mohali facility
+under import alert and was also subjected to certain provisions
+of the consent decree of permanent injunction entered in
+January 2012 by erstwhile Ranbaxy Laboratories Ltd (which
+was merged with Sun Pharmaceutical Industries Ltd in
+March 2015). In November 2016, the US-FDA conducted
+a re-inspection of the Mohali facility post the completion
+of remediation work at the facility. As a result of this re-
+inspection, in March 2017, the US-FDA lifted the import alert
+and indicated that the facility was in compliance with the
+requirements of cGMP provisions mentioned in the consent
+decree. The Mohali facility will continue to remain under
+consent decree under certain other provisions of the decree
+for a fixed period of time to demonstrate sustainable cGMP
+compliance.
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 67
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+SUN
+ANNUAL REPORT 2016-17 253
+In December 2015, the US-FDA issued a warning letter to the manufacturing facility at Halol. Subsequently, a re-inspection was
+carried out by the US-FDA in November 2016. At the conclusion of the inspection, FDA issued a Form 483 with nine observations. The
+Company has submitted its response documenting the corrective measures to resolve the 483 observations. The Company is providing
+regular updates to US-FDA on the progress of the corrective actions. The Company is continuing to manufacture and distribute products
+to the U.S from Halol facility and at the same time working closely and cooperatively with the US-FDA to resolve the matter.
+The US-FDA, on January 23, 2014, had prohibited using API manufactured at Toansa facility for manufacture of finished drug products
+intended for distribution in the U.S. market. Consequentially, the Toansa manufacturing facility was subject to certain provisions of the
+consent decree of permanent injunction entered in January 2012 by erstwhile Ranbaxy Laboratories Ltd (which was merged with Sun
+Pharmaceutical Industries Ltd in March 2015). In addition, the Department of Justice of the USA ('US DOJ'), United States Attorney's Office
+for the District of New Jersey had also issued an administrative subpoena dated March 13, 2014 seeking information primarily related
+to Toansa manufacturing facility for which a Form 483 containing findings of the US-FDA was issued in January 2014. The Company is
+continuing to fully cooperate and is in dialogue with the US DOJ, and continuing to provide requisite information.
+b)
+a) Since the US-FDA import alert at Karkhadi facility in March 2014, the Company remained fully committed to implement all corrective
+measures to address the observations made by the US-FDA with the help of third party consultant. Substantial progress has been
+made at the Karkhadi facility in terms of completing the action items to address the observations made by the US-FDA in its warning
+letter issued in May 2014. The Company is continuing to work closely and co-operatively with the US-FDA to resolve the matter. The
+contribution of this facility to Company's revenues is not significant.
+Note 63
+Exceptional item for previous year represents charge on account of impairment of certain property, plant and equipment and intangible
+assets and other related costs and write down of the carrying value of goodwill. This charge had arisen on account of the integration and
+optimisation exercise being carried out for certain manufacturing facilities. The recoverable amount of the said assets is its value in use which
+is determined for a period of less than one year.
+Note 62
+PHARMA
+* Includes provision for Trade commitments, discounts, rebates, price reduction, product returns, medicaids and contingency provision.
+Pursuant to the declaration executed by the Sun Pharma Laboratories
+Limited (SPLL), a wholly owned subsidiary, in favour of Trumpcard
+Advisors and Finvest LLP ('Donee') on March 31, 2017, the power
+CORPORATE OVERVIEW 01-07
+C
+Secured term loan from department of biotechnology of
+Secured Term Loan from Other Parties:
+B
+(II) Loan of Nil (March 31, 2016: Nil, April 01, 2015 BRL 0.8
+Million - 16.4 Million) included in long term borrowings
+*Nil (March 31, 2016: Nil, April 01, 2015 16.4 Million)
+which was repayable by December 2016 has been repaid
+during the year ended March 31, 2016. The loan was secured
+by land and factory building situated at Goiania, Brazil.
+(1) Long term loan of Nil (March 31, 2016: Nil, April 01,
+2015: USD 5.9 Million - 368.0 Million) [Included in long
+term borrowings Nil (March 31, 2016: Nil, April 01,
+2015 * 311.0 Million) and Nil (March 31, 2016: Nil,
+April 01, 2015: 57.0 Million) in current maturities of long
+term debt] which was repayable by October 2020 has
+been repaid during the year ended March 31, 2016. The
+loan was secured by building situated at New York, USA.
+A Secured Term Loan from banks:
+DETAILS OF LONG TERM BORROWINGS AND CURRENT
+MATURITIES OF LONG TERM DEBT AND FINANCE LEASE
+OBLIGATIONS [INCLUDED UNDER OTHER FINANCIAL
+LIABILITIES (CURRENT)]
+Note 68
+254 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+1,134.2 Million
+Unsecured Term Loan from banks:
+borrowing March 31, 2017: 662.5 Million (March 31, 2016:
+*715.8 Million, April 01, 2015: 2.2 Million) and March 31,
+2017: 39.5 Million (March 31, 2016: 32.7 Million and
+April 01, 2015: 21.9 Million) in current maturities of long
+term finance lease obligations] repayable by FY 2019-2025 is
+secured against assets taken on finance lease.
+D
+undertaking of SPLL ('Donor') has been gifted to Trumpcard Advisors
+and Finvest LLP. Accordingly, on and with effect from the close
+of business hours on March 31, 2017, all the assets, movable
+and immovable, tangible and intangible, along with the liabilities
+pertaining to the power undertaking stand transferred to and vested
+in Trumpcard Advisors and Finvest LLP as a going concern without
+consideration. For this purpose, the net book value on gift of power
+undertaking has been added to the cost of investment of the SPLL in
+Vintage Power Generation LLP, being the partner of the Donee.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+(i)
+44,707.6
+44,707.6
+46,903.6
+Sales related*
+Product and
+in Million
+Closing balance
+Add/ (Less): Foreign currency translation
+difference
+Less: Utilisation/Settlement
+Add: Unwinding of discount on provisions
+Add: Provision for the year
+Opening balance
+44,707.6
+In respect of any present obligation as a result of a past event that could lead to a probable outflow of resources, provision has been made,
+which would be required to settle the obligation. The said provisions are made as per the best estimate of the management and disclosure as
+per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has been given below:
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+252 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+The Group does not have any material associates or joint ventures warranting a disclosure in respect of individual associates or joint ventures.
+The Group's share of other comprehensive income is Nil (March 31, 2016: * Nil) in respect of such associates and joint ventures. The
+unrecognised share of loss of Nil (March 31, 2016: Nil) in respect of such associates and joint ventures.
+Note 60
+Note 61
+As at March 31, 2017
+Consultancy
+charges
+Total
+18,905.5
+2,516.2
+2,516.2
+(1,295.0)
+(14,014.8)
+(1,184.6)
+(12,830.2)
+(15,852.3)
+538.0
+538.0
+43,909.7
+11,758.5
+11,758.5
+1,184.6
+charges
+Total
+As at March 31, 2016
+Consultancy
+Product and
+Sales related *
+42,725.1
+44,707.6
+18,905.5
+437.8
+46,903.6
+(1,295.0)
+(15,852.3)
+437.8
+Note 59
+* 108.2 Million (March 31, 2016: 77.3 Million, April 01, 2015:
+77.3 Million) has been secured by hypothecation of assets
+and goods of the Parent Company. The loan is repayable in 10
+equal half yearly installments commencing from December 26,
+2018, last installment is due on June 26, 2023.
+169,913
+Exercise prices (*)
+20.9
+69.3
+1,527.0
+213.4
+1,601.0
+174.8
+305.9
+184.1
+353.2
+152.1
+2,236.3
+290.9
+352.3
+132.5
+267.4
+137.0
+353.9
+115.3
+252.4
+118.1
+320.2
+158.8
+100.4
+22.2
+156.3
+June 25, 2003
+Date of approval
+The Shareholders' Committee of erstwhile RLL had approved issuance of options under the ESOS's as per details given below:
+Original No. of options approved
+ESOP 2011 provided that the grant price of options would be the face value of the equity share i.e. * 5 per share. The options vested
+evenly over a period of three years from the date of grant. Options lapse, if they were not exercised prior to the expiry date, which was
+three months from the date of the vesting. An ESOP Trust had been formed to administer ESOP 2011. Shares issued to the ESOP Trust
+were allocated to the eligible employees upon exercise of stock options from time to time.
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS
+NOTES TO THE CONSOLIDATED
+PHARMA
+SUN
+25.9
+ANNUAL REPORT 2016-17 249
+Erstwhile Ranbaxy Laboratories Limited (RLL) had Employee Stock Option Schemes ("ESOSs") namely, Employees Stock Option Scheme
+-II (ESOS-II), Employees Stock Option Scheme 2005 (ESOS 2005) and Employees Stock Option Plan 2011 (ESOP 2011) for the grant
+of stock options to the eligible employees and Directors of the Erstwhile RLL and its subsidiaries. ESOS-II had been discontinued from
+January 17, 2015. The ESOSS is administered by the Compensation Committee ("Committee”). Options are granted at the discretion of
+the Committee to selected employees depending upon certain criterion. Each option comprises one underlying equity share.
+a)
+EMPLOYEE SHARE-BASED PAYMENT PLANS
+Note 58
+Taro Pharmaceutical Industries Ltd and its Israeli subsidiaries are required to make severance or pension payments to dismissed employees
+and to employees terminating employment under certain other circumstances. Deposits are made with a pension fund or other insurance
+plans to secure pension and severance rights for the employees in Israel.
+Note 57
+The contribution expected to be made by the Parent and Indian subsidiaries for gratuity, during financial year ending March 31, 2018 is
+483.1 Million (Previous year ₹ 413.0 Million).
+8.6
+1,940.4
+ESOS 2005 provided that the grant price of options would be the latest available closing price on the stock exchange on which the
+shares of the erstwhile RLL were listed, prior to the date of the meeting of the Committee in which the options were granted. If the
+shares are listed on more than one stock exchange, then the stock exchange where there is highest trading volume on the said date shall
+be considered. The options vested evenly over a period of five years from the date of grant. Options lapse, if they are not exercised prior
+to the expiry date, which was ten years from the date of grant.
+415.5
+101.9
+466.6
+Central government securities
+The major categories of plan assets are as under:
+Thereafter
+31-Mar-22
+31-Mar-21
+31-Mar-20
+31-Mar-19
+31-Mar-18
+Maturity analysis of projected benefit obligation
+Bonds and securities of public sector / financial institutions
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee turnover
+Delta effect of -1% change in rate of employee turnover
+Delta effect of +1% change in discount rate
+Impact on defined benefit obligation
+Sensitivity Analysis:
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+Delta effect of -1% change in discount rate
+Insurer managed funds (Funded with LIC, break-up not available)
+Surplus fund lying uninvested
+in Million
+Year ended March 31, 2017
+Pension Fund
+87.4
+30.7
+110.7
+(27.6)
+(98.2)
+161.9
+(145.6)
+(214.1)
+237.5
+167.4
+79.0
+257.8
+539.4
+(147.5)
+(67.6)
+(226.5)
+(73.2)
+86.0
+796.9
+Gratuity
+(Funded)
+(Unfunded)
+Year ended March 31, 2016
+Pension Fund
+Gratuity
+(Funded)
+(Unfunded)
+Scheme
+ESOS-II
+Weighted-average average remaining
+exercise prices (₹) contractual life
+(years)
+4,000,000
+May 9, 2011
+(447,825)
+3.3
+496.0
+270.0-703.0
+1,169,586
+3.3
+496.0
+270.0-703.0
+41
+270.0-703.0
+3.3
+270.0-703.0
+1,169,545
+*Includes options exercised, pending allotment
+*
+Exercisable at the end of the year
+Outstanding at the end of the year *
+Lapsed during the year
+Exercised during the year $
+No. of options on Account of rounding off of the fraction to
+the next higher whole number as per the merger Scheme
+Total Number of options outstanding
+496.0
+Number of options - post-merger of Erstwhile RLL with the
+transferee company
+518.9
+270.0-703.0
+Stock options
+(numbers)
+Weighted-
+March 31, 2017
+# Weighted average share price on the date of exercise * 802.00
+* Includes options exercised, pending allotment
+Exercisable at the end of the year
+Outstanding, end of the year
+Lapsed during the year
+Exercised during the year#
+(111,022)
+Forfeited during the year
+The movement of the options (post split) granted under SUN-ESOP 2015 for the current year is given below:
+$ Weighted average share price on the date of exercise *823.63
+480.9
+270.0-703.0
+2.5
+480.9
+270.0-703.0
+610,739
+610,739
+479.9
+Outstanding at the commencement of the year
+Outstanding at the commencement of the year
+remaining contractual
+life (years)
+Stock options Range of exercise Weighted-average
+(numbers)
+prices (*) exercise prices (*)
+270.0-562.5
+(62,682)
+2.5
+480.9
+270.0-703.0
+610,739
+Outstanding at the end of the year
+Lapsed during the year
+Exercised during the year $
+500.1
+Outstanding at the commencement of the year
+Weighted-
+March 31, 2017
+The movement of the options (post split) granted under SUN-ESOS 2015
+Pursuant to the Scheme of Amalgamation, Sun Pharmaceutical Industries Limited ('transferee company') formulated two Employee Stock
+Option Schemes, namely, (i) SUN Employee Stock Option Scheme-2015 (SUN-ESOS 2015) to administer ESOS 2005 (ii) SUN Employee
+Stock Option Plan-2015 (SUN-ESOP 2015) to administer ESOP 2011. These scheme provide that the number of transferee options issued
+shall equal to the product of number of transferor options outstanding on effectiveness of Scheme multiplied by the Share exchange ratio
+(0.80) and each transferee option shall have an exercise price per equity share equal to transferor option exercise price per equity shares
+divided by the share exchange ratio (0.80) and fractions rounded off to the next higher whole number. The terms and conditions of ESOS,
+of transferee company are not less favourable than those of ESOSS of erstwhile RLL. No new grants shall be made under these schemes and
+these schemes shall operate only for the purpose of administering the exercise of options already granted/ vested on an employee pursuant
+to SUN-ESOS 2015 and SUN-ESOP 2015.
+The stock options outstanding as on June 30, 2005 are proportionately adjusted in view of the sub-division of equity shares of the Erstwhile
+RLL from the face value of 10 each into 2 equity shares of 5 each.
+In accordance with the above approval of issuance of options, stock options have been granted from time to time.
+3,000,000
+4,000,000
+ESOS 2005
+ESOP 2011
+Stock options Range of exercise Weighted-average average remaining
+(numbers)
+prices (*) exercise prices (₹) contractual life
+(years)
+(146,379)
+270.0-562.5
+521.7
+Weighted-average
+March 31, 2016
+The movement of the options (post split) granted under SUN-ESOS 2015
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+250 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+$ Weighted average share price on the date of exercise * 690.23
+* Includes options exercised, pending allotment
+1.9
+462.9
+270.0-562.5
+401,678
+*
+Exercisable at the end of the year
+1.9
+462.9
+270.0-562.5
+401,678
+June 30, 2005
+Lease obligations of 702.0 Million (March 31, 2016: * 748.5
+Million, April 01, 2015: 24.1 Million) [included in non-current
+Loan of USD 17.5 Million equivalent to
+* 1,158.8 Million, April 01, 2015: 1,138.3 Million) and
+March 31, 2017: 49.0 Million (March 31, 2016: ₹ 47.9
+Million, April 01, 2015: ₹ 43.3 Million) in current maturities
+of long term debt], which is repayable in varying amounts
+by June 2033. The loan is collateralized by substantially all
+the assets of Pharmalucence Inc.
+notes* denomination notes
+2,964,000
+5,427,960
+14,405,657
+Total
+All amounts in absolute
+Other
+Specified bank
+Closing cash in hand as on December 30, 2016
+Permitted receipts during November 08, 2016 and December 30, 2016
+Permitted payments during November 08, 2016 and December 30, 2016
+Amount deposited in banks
+Closing cash in hand as on November 08, 2016
+Particulars
+DETAILS OF SPECIFIED BANK NOTES (SBN) HELD AND TRANSACTED OF THE PARENT COMPANY AND
+SUBSIDIARIES COMPANIES IN INDIA DURING THE PERIOD FROM NOVEMBER 08, 2016 TO DECEMBER
+30, 2016 IS AS FOLLOWS:
+Note 71
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS
+NOTES TO THE CONSOLIDATED
+8,391,960
+PHARMA
+ANNUAL REPORT 2016-17 257
+Consequent to the amalgamation of erstwhile RLL into the Parent Company as referred in Note 66, Zenotech Laboratories Limited ('Zenotech') had become an
+associate of the Parent Company. The erstwhile RLL had granted certain loans to Zenotech which were outstanding and inherited by the Parent Company. The
+Parent Company has not granted any further loans to Zenotech post effective date of amalgamation i.e. March 24, 2015. The balance of this inherited outstanding
+loan is 512.0 Million. The Parent Company is in process of evaluating various options in relation to recovery of the outstanding loans and interest thereon of
+214.9 Million (March 31, 2016: 151.5 Million, April 01, 2015: * 88.8 Million).
+* includes interest accrued and due on loans amounting to 214.9 Million (March 31, 2016: 151.5 Million; April 01, 2015: 88.8 Million).
+Loans have been granted to the above entity for the purpose of its business.
+326.8
+274.0
+663.5
+726.9
+600.8
+663.5
+726.9
+274.0
+663.5
+726.9
+SUN
+14,405,657
+(280,500)
+(2,683,500)
+(13,075,323)
+(2,683,500)
+(March 31, 2016: USD 18.2 Million equivalent * 1,206.7
+Million, April 01, 2015: USD 18.9 Million equivalent
+1,181.6 Million) [Included in non-current borrowing
+March 31, 2017: 1,085.2 Million (March 31, 2016:
+258 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+* Held by Non-controlling interest
+20.76%
+20.68%
+18.13%
+Voting power
+subsidiaries (TARO Group)
+31.13%
+As at April
+01, 2015
+As at March
+31, 2016
+31.02%
+As at March
+31, 2017
+27.19%
+Nature*
+Beneficial
+ownership
+America
+Industries Ltd. and its
+Israel
+Country of
+incorporation
+Principal place of
+business
+United States of
+Taro Pharmaceutical
+Name of Subsidiary
+DISCLOSURE OF A SUBSIDIARY THAT HAS NON-CONTROLLING INTEREST THAT IS MATERIAL TO THE
+GROUP
+Note 74
+Property, plant and equipment consisting of land, building, plant and equipment, furniture and fixtures amounting to ₹ 65.9 Million (March
+31, 2016: 71.9 Million, April 01, 2015: Nil) in respect of the manufacturing facility in Ireland are held for sale. The management expects
+disposal of these assets in financial year 2017-2018.
+Note 73
+The Group has benefited from active grants from Government of Romania and European Union. These grants were received for building,
+plant and machinery and laboratory equipment. The grant will be amortised in varying periods based on category of asset and from the date
+when grant is received. Amortisation period ranges from 2 months to 338 months.
+Note 72
+* Specified bank notes are currency notes of 500 and 1000 discontinued vide notification S.O. 3407(E) dated November 08, 2016.
+7,038,794
+7,038,794
+326.8
+April 01, 2015
+(12,794,823)
+As at
+March 31, 2016
+Rated Unsecured Listed Redeemable 5,000 Non-Convertible Debentures Series 2
+Rated Unsecured Listed Redeemable 5,000 Non-Convertible Debentures Series 1
+Particulars
+* 10,000.0 Million (March 31, 2016: 10,000 Million; April
+01, 2015: Nil) Rated unsecured listed redeemable non-
+convertible debentures at a coupon rate of 7.94% p.a. were
+issued by Sun Pharma Laboratories Limited ("SPLL" - the Wholly
+owned subsidiary) on December 23, 2015. Following are the
+details:
+Unsecured Debentures:
+E
+(iii) Loan under Foreign Currency Non Resident (FCNR B) Scheme
+of USD 50.0 Million (March 31, 2016: USD 50 Million, April
+01, 2015: USD Nil) equivalent to 3,242.8 Million (March 31,
+2016: 3,313.0 Million, April 01, 2015: Nil). The loan was
+taken on August 19, 2015 and is repayable on August 18, 2017.
+31, 2016: USD Nil, April 01, 2015:
+USD Nil) equivalent to 1,037.7 Million (March 31, 2016:
+* Nil, April 01, 2015: Nil). The loan was taken on March
+24, 2017 and is repayable on March 22, 2019.
+of USD 40 Million was taken on March 25, 2011 and was
+repayable in 3 installments viz., 30% each of the drawn
+amount at the end of 4th year and 5th year and 40% of
+the drawn amount at the end of the 6th year. The last
+installment of USD 16 Million has been repaid in current
+year. First and Second installment of USD 12 Million each
+has been repaid in previous years.
+USD Nil (March 31, 2016: USD 16 Million, April 01, 2015:
+USD 28 Million) equivalent to Nil (March 31, 2016:
+1,060.2 Million, April 01, 2015: 1,750.1 Million). Loan
+USD 100 Million (March 31, 2016: USD 100 Million, April
+01, 2015: USD 100 Million) equivalent to ₹ 6,485.5 Million
+(March 31, 2016: 6,626.0 Million, April 01, 2015:
+6,250.5 Million). The loan was taken on June 04, 2013 and
+is repayable on June 03, 2018.
+f)
+USD 16 Million (March
+i)
+Face Value (*)
+d)
+USD 50 Million (March 31, 2016: USD 50 Million, April 01,
+2015: USD Nil) equivalent to ₹ 3,242.8 Million (March 31,
+2016: 3,313.0 Million, April 01, 2015: Nil) The loan was
+taken on August 11, 2015 and is repayable on August 11,
+2017.
+h)
+USD 10 Million (March 31, 2016: USD 20 Million, April
+01, 2015: USD 30 Million) equivalent to 648.6 Million
+(March 31, 2016: 1,325.2 Million, April 01, 2015:
+1,875.2 Million). The loan was taken on June 30, 2011
+and is repayable in 3 equal installments of USD 10
+Million each at the end of 4th year, 5th year and 6th year.
+Second installment of USD 10 Million has been repaid in
+current year and first installment of USD 10 Million was
+repaid during the year ended March 31, 2016. The last
+installment is due on June 30, 2017.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 255
+USD Nil (March 31, 2016: USD Nil, April 01, 2015: USD
+30 Million) equivalent to Nil (March 31, 2016: Nil,
+April 01, 2015: 1,875.2 Million). The loan was taken on
+September 9, 2010. The outstanding amount has been
+repaid during the year ended March 31, 2016.
+USD Nil (March 31, 2016: USD Nil, April 01, 2015: USD
+50 Million) equivalent to Nil (March 31, 2016: * Nil, April
+01, 2015: 3,125.2 Million). The loan was taken on August
+12, 2010. The outstanding amount has been repaid during
+the year ended March 31, 2016.
+a)
+As at
+(ii) External Commercial Borrowings (ECBs) has 6 loans
+aggregating of USD 256 Million (March 31, 2016: USD
+266 Million, April 01, 2015: USD 288 Million) equivalent
+to 16,602.9 Million (March 31, 2016: 17,625.2 Million,
+April 01, 2015: 18,001.4 Million) [(included in long term
+borrowings * 7,523.2 Million (March 31, 2016: 15,902.4
+Million, April 01, 2015: 11,625.9 Million) and in current
+maturities of long term debt ₹9,079.7 Million (March
+31, 2016: 1,722.8 Million, April 01, 2015: 6,375.5
+Million))]. For the ECB loans outstanding as at March
+31, 2017, the terms of repayment for borrowings are as
+follows:
+USD 30 Million (March 31, 2016: USD 30 Million, April
+01, 2015: USD Nil) equivalent to 1,945.7 Million (March
+31, 2016: 1,987.8 Million, April 01, 2015: Nil) The loan
+was taken on September 09, 2015 and is repayable on
+September 08, 2017.
+1,000,000
+1,000,000
+USD 50 Million (March 31, 2016: USD 50 Million, April
+01, 2015: USD 50 Million) equivalent to 3,242.8 Million
+(March 31, 2016: 3,313.0 Million, April 01, 2015:
+3,125.2 Million). The loan was taken on September 20,
+2012 and is repayable on September 19, 2017.
+Note 70
+As at
+F Unsecured Term Loan from Other Parties:
+in Million
+Less: Allowance for doubtful loan/interest accrued and due on loan
+Considered doubtful
+Considered good
+Zenotech Laboratories Limited, India
+Interest bearing with specified repayment schedule:
+LOANS/ADVANCES DUE FROM AN ASSOCIATE
+First charge has been created on a pari-passu basis, by hypothecation of inventories, trade receivables, outstanding money receivables, claims
+and bills and other receivables (includes under loans and advances and other assets), both present and future.
+DETAILS OF SECURITIES FOR SHORT TERM BORROWINGS ARE AS UNDER:
+Note 69
+(ii) Unsecured Term Loan of Nil (March 31, 2016: Nil, April 01, 2015: ₹2,500.0 Million) has been repaid during the year ended
+March 31, 2016.
+The Parent Company has not defaulted on repayment of loan and interest payment thereon during the year.
+CORPORATE OVERVIEW 01-07
+Redemption
+Amount Date of Redemption
+(in Million)
+5,000.0
+5,000.0
+March 22, 2019
+December 22, 2017
+Unsecured loan from other parties amounting to Nil (March 31, 2016: Nil, April 01, 2015: 513.1 Million) of which Nil (March 31,
+2016: * Nil, April 01, 2015: 497.6 Million) was repayable after August 2016 on demand and balance of Nil (March 31, 2016: Nil,
+April 01, 2015: 15.5 Million) was repayable after March 2016 on demand. The above loans has been repaid during the year ended
+March 31, 2016.
+256
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+(i) Redeemable non-convertible debentures of Nil (March 31, 2016: ₹ Nil, April 01, 2015: 5,000.0 Million) issued on November 23,
+2012 for a period of 36 months at a coupon rate of 9.20% p.a. Such debentures were secured by a pari-passu first ranking charge
+on the Parent Company's specified fixed assets so as to provide a fixed asset cover of 1.25x and were listed on the National Stock
+Exchange. The loan was taken on November 23, 2012 and has been repaid during the year ended March 31, 2016.
+STATUTORY REPORTS
+March 31, 2017
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+G Term Loan from banks and Debentures (included under current maturities of long term borrowing):
+08-79
+(0.0)
+OOO "Sun Pharmaceutical Industries" Limited
+0.0
+(182.6)
+0.0
+12.7
+7
+0.2
+8
+Sun Pharma De Venezuela, C.A.
+(0.4)
+(19.9)
+(1,444.5)
+(0.5)
+12.7
+(0.0)
+118.5
+(0.0)
+(150.0)
+(0.0)
+Sun Pharmaceutical Peru S.A.C.
+6
+0.2
+0.0
+SPIL De Mexico S.A. DE C.V.
+5
+118.5
+0.2
+0.2
+758.1
+(325.3)
+(19.9)
+(0.6)
+1.5
+9
+551.5
+(0.2)
+(114.2)
+(0.2)
+(114.2)
+12
+0.1
+Ranbaxy (Netherlands) B.V.
+53,421.2
+1,079.2
+1.9
+1,079.2
+13
+Sun Pharma De Mexico S.A. DE C.V.
+13.2
+(325.3)
+Ranbaxy Nigeria Limited
+86.6
+Ranbaxy Pharmacie Generiques
+(0.4)
+(1,658.4)
+(0.2)
+(173.6)
+(0.3)
+11
+(173.6)
+Ranbaxy (Malaysia) Sdn. Bhd.
+0.1
+333.4
+0.1
+86.6
+0.2
+10
+4
+31
+0.3
+29
+(117.8)
+(0.2)
+(117.8)
+(0.2)
+(443.6)
+Sun Pharma HealthCare FZE
+5.3
+0.0
+0.0
+0.0
+12
+Sun Pharma Medisales Private Limited (Formerly known as
+Solrex Pharmaceuticals Company)
+0.0
+0.0
+85.0
+0.0
+0.0
+(0.2)
+2.5
+0.0
+2.5
+(114.3)
+30,612.8
+44.0
+134,415.9
+181.0
+33.2
+Alkaloida Chemical Company Zrt.
+(0.2)
+(344.7)
+(0.1)
+Sun Laboratories FZE
+30
+Taro Pharmaceutical Industries Ltd. (TARO)
+0.2
+118.0
+0.0
+3.1
+12,430.7
+0.3
+(2.3)
+219.2
+(1,594.3)*
+0.4
+(2.8)
+219.2
+Sun Pharmaceutical Industries, Inc. (Consolidated with its
+(1,594.3)*
+3
+Sun Farmaceutica Do Brasil Ltda.
+(0.5)
+(2,207.3)
+0.3
+185.1
+Subsidiaries, its associates and a Joint venture)
+2
+942.2
+0.2
+0
+(0.7)
+0.2
+117.3
+13
+Sun Pharmaceutical Medicare Limited
+(0.0)
+(11.0)
+(0.0)
+(13.5)
+(0.0)
+(13.5)
+Foreign
+1
+Sun Pharmaceutical (Bangladesh) Limited
+185.1
+6.1
+(0.0)
+(1.9)
+(0.1)
+(419.5)
+(0.2)
+(152.5)
+(0.3)
+(152.5)
+Sun Pharma Philippines, Inc.
+26
+0.0
+4.2
+(0.0)
+(0.3)
+(0.0)
+(0.3)
+Sun Pharmaceuticals Korea Ltd.
+ANNUAL REPORT 2016-17 267
+25
+(0.0)
+23
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+(0.0)
+(0.1)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+24
+Sun Global Canada Pty. Ltd.
+(0.0)
+(1.1)
+(0.0)
+(0.0)
+(0.0)
+10,963.2*
+SUN
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+OCI
+TCI
+(loss)
+27
+Sun Global Development FZE
+0.0
+net assets
+181.3
+(0.7)
+(0.0)
+(0.7)
+28
+Sun Pharma Japan Ltd.
+(114.3)
+(0.0)
+PHARMA
+* In Million
+In Million consolidated
+(0.1)
+FOR THE YEAR ENDED MARCH 31, 2017
+Name of the Entity
+Net Assets, i.e., total assets
+minus total liabilities
+Share in profit or (loss)
+2016-17
+In Million consolidated
+As % of
+consolidated
+2016-17
+As % of
+consolidated
+profit or
+Share in Other
+Comprehensive Income
+(OCI)
+2016-17
+Share in Total
+Comprehensive Income
+(TCI)
+2016-17
+As % of
+As % of
+* In Million
+19.5
+27.4 (3,657.4)
+14,620.6 *
+(360.9)
+16 Aditya Acquisition Company Ltd.
+0.0
+6.0
+0.0
+5.6
+(0.6)
+0.0
+17
+Sun Pharmaceutical Industries (Europe) B.V.
+(0.0)
+(110.5)
+0.0
+26.9
+5.6
+0.0
+(360.9)
+1,975.6
+(1,356.0)
+(2.4)
+(1,356.0)
+14
+Sun Pharmaceuticals UK Limited
+(0.0)
+(0.5)
+(91.4)
+(0.8)
+(0.0)
+(0.8)
+15
+Sun Pharmaceutical Industries (Australia) Pty Ltd
+0.5
+(0.0)
+26.9
+18
+Sun Pharmaceuticals Italia S.R.L.
+(2.4)
+22
+21
+Sun Pharmaceuticals France
+(0.0)
+(17.1)
+(0.0)
+(4.3)
+(4.3)
+22
+Sun Pharma Global FZE (Consolidated with a Joint venture)
+30.5
+123,500.6
+21.0
+(0.0)
+(2.4)
+(0.0)
+(186.0)
+0.0
+40.5
+(0.0)
+(1.5)
+(0.0)
+(1.5)
+19
+Sun Pharmaceuticals Spain, S.L.U.
+(0.0)
+(5.2)
+(0.0)
+(5.2)
+20
+Sun Pharmaceuticals Germany GmbH
+(0.0)
+24,524.0
+12.6
+In the financial statements prepared under Previous GAAP,
+deferred tax was accounted as per the income statement
+approach which required creation of deferred tax asset/
+liability on temporary differences between taxable profit and
+accounting profit. Under Ind AS, deferred tax is accounted as
+per the Balance Sheet approach which requires creation of
+deferred tax asset/liability on temporary differences between
+the carrying amount of an asset/liability in the Balance Sheet
+and its corresponding tax base. The application of Ind AS has
+also resulted in recognition of deferred tax on new temporary
+differences which were not required to be recognised
+under previous GAAP, including deferred taxes in respect of
+unrealised intra group profits on inventories.
+51.4
+56
+104.9
+0.2
+104.9
+0.2
+248.6
+Ranbaxy (U.K.) Limited
+0.1
+55
+0.1
+0.0
+0.1
+0.0
+17.3
+Laboratorios Ranbaxy, S.L.U.
+0.0
+0.3
+0.1
+0.0
+Ranbaxy Europe Limited
+58
+(1.0)
+(0.0)
+(1.0)
+1,164.6
+(0.0)
+0.6
+Ranbaxy Holdings (U.K.) Limited
+57
+63.2
+0.1
+63.2
+2,480.0
+148.1
+Be-Tabs Investments Proprietary Limited
+186.9
+25.1
+0.0
+1,703.7
+0.4
+JSC Biosintez
+51
+0.0
+143.0
+143.0
+0.2
+987.2
+0.2
+AO Ranbaxy (Formerly known ZAO Ranbaxy)
+50
+0.3
+54
+25.1
+Ranbaxy South Africa Proprietary Limited (Consolidated with
+0.3
+186.9
+0.3
+(1,035.4)
+(0.3)
+Ranbaxy Pharmaceutical Proprietary Limited
+52
+53
+308.1
+0.5
+308.1
+0.4
+852.4
+0.2
+its Subsidiary)
+2,237.1
+0.0
+0.0
+Associate (Investment as per the equity method)
+(7,284.3)
+(12.9)
+1,534.3
+(11.5)
+27.1
+Indian
+0.0
+(12.7)
+37,908.6
+9.4
+Non controlling interest in all subsidiaries
+0.0
+107.4
+27.1
+(8,818.6)
+0.0
+1
+Foreign Joint Ventures (Investment as per equity method)
+MSD - Sun LLC (Consolidated with its subsidiary)
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+268
+The above amounts / percentage of net assets and net profit or (loss) in respect of the Parent Company, its subsidiaries, associates and joint ventures are determined based on the amounts of the respective
+entities included in consolidated financial statements before inter-company eliminations / consolidation adjustments.
+Refer note 39 (e)
+* Includes share of loss and share of TCI, from a joint venture of 2.5 million
+# Includes share of profit and share of TCI, from its associates and a joint venture of 101.8 million
+Total
+Zenotech Laboratories Limited
+0.0
+(165.9) (670,772.1)
+100.0 404,305.3
+65.9 (8,786.8)
+100.0 (13,337.6)
+17,348.6
+69,643.7
+24.9
+100.0
+0.7
+Intercompany Elimination and Consolidation Adjustments
+1
+15.2
+8,561.8
+100.0 56,306.1
+0.0
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+81.7
+0.0
+20,673.7
+5.1
+Sun Pharmaceuticals Holdings USA, INC
+60
+5,297.3
+0.1
+9.4
+7.6
+38,000.0
+9.4
+Ranbaxy Inc. (Consolidated with its Subsidiaries)
+59
+0.0
+5,297.3
+63
+0.0
+61
+0.1
+81.7
+0.1
+(40.2)
+(0.0)
+Sun Pharmaceuticals Morocco LLC (Formerly known as
+Ranbaxy Morocco LLC)
+0.1
+62
+(0.2)
+(91.1)
+(0.1)
+160.8
+0.0
+Ranbaxy (Thailand) Company Limited
+(91.1)
+4.0
+2,237.1
+3.2
+Australia Pty Ltd)
+34.8
+0.1
+34.8
+0.0
+(429.7)
+38
+(0.1)
+37
+(32.2)
+(0.1)
+(32.2)
+(0.0)
+(71.5)
+Sun Pharma ANZ Pty Ltd (Formerly known as Ranbaxy
+(0.0)
+Ranbaxy Farmaceutica Ltda.
+(1,070.3)
+Ranbaxy Egypt LLC
+40
+(64.1)
+(0.1)
+(64.1)
+(0.1)
+(0.3)
+332.7
+Ranbaxy Pharmaceuticals Canada Inc.
+39
+87.3
+0.2
+87.3
+0.1
+0.1
+0.1
+Sun Pharma East Africa Limited
+(9.7)
+9.6
+0.0
+9.6
+(27.8)
+(0.0)
+(21.8)
+(0.0)
+(0.0)
+Sun Pharma Switzerland Limited
+0.0
+20.0
+0.0
+Alkaloida Sweden AB
+32
+28,929.1
+33
+36
+(27.8)
+Ocular Technologies
+(0.0)
+(9.7)
+(0.0)
+203,802.5
+50.4
+Sun Pharma Holdings
+34
+35
+2,713.8
+4.8
+2,713.8
+3.9
+2,626.6
+0.6
+0.0
+265.7
+(0.1)
+(95.4)
+(0.0)
+Sun Pharmaceutical Industries S.A.C. (Formerly known as
+47
+(36.4)
+(0.1)
+(2.5)
+(94.5)
+0.0
+(0.0)
+19.8
+0.0
+Ranbaxy Italia S.P.A.
+46
+146.8
+(33.9)
+0.3
+(0.0)
+(0.0)
+10,409.9
+2.6
+S. C. Terapia S.A.
+49
+11.0
+0.0
+(22.2)
+11.0
+156.9
+0.0
+Ranbaxy (Poland) Sp. Z o.o.
+48
+Ranbaxy - PRP (Peru) S.A.C.)
+(22.2)
+0.0
+146.8
+0.2
+505.2
+78.6
+0.0
+Office Pharmaceutique Industriel Et Hospitalier
+42
+(11.8)
+(0.0)
+0.0
+(11.8)
+(10.9)
+(0.0)
+Rexcel Egypt LLC
+41
+(95.4)
+(0.2)
+(0.0)
+14.5
+0.0
+14.5
+0.1
+Ranbaxy Ireland Limited
+45
+1.7
+0.0
+Ranbaxy GmbH
+44
+41.2
+0.1
+41.2
+0.1
+842.2
+0.2
+Basics GmbH
+43
+(1,683.7)
+Universal Enterprises Private Limited
+(1,000.0)
+0.1
+Year ended
+March 31, 2017
+* in Million
+Year ended
+March 31, 2016
+29,345.5
+(7,899.4)
+35,472.4
+40,406.9
+25,853.2
+(18,629.9)
+37,737.2
+(a) Sun Pharma Global FZE, a subsidiary of the Parent Company holds 23.35% in the capital of Enceladus Pharmaceutical B.V. However,
+as Sun Pharma Global FZE does not have any 'Significant Influence' in Enceladus Pharmaceutical B.V., as is required under Ind AS 28
+- "Investment in Associates & Joint Ventures”, the said investment in Enceladus Pharmaceutical B.V. has not been consolidated as an
+"Associate Entity".
+(b) The Parent Company holds 24.91% in the capital of Shimal Research Laboratories Limited. However, as the Parent Company does not
+have any 'Significant Influence' in Shimal Research Laboratories Limited, as is required under Ind AS 28 - "Investment in Associates &
+Joint Ventures", the said investment in Shimal Research Laboratories Limited has not been consolidated as an "Associate Entity".
+ANNUAL REPORT 2016-17 259
+SUN
+PHARMA
+40,268.8
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+(21,951.6)
+60,748.8
+(23,243.0)
+Total Income
+Total Expenses
+Profit after Tax
+Total comprehensive income for the year
+Consolidated cash flows information of TARO Group
+Cash flow from operating activities
+30,612.9
+25,241.9
+Cash flow from investing activities
+There has been no dividend paid by TARO during the year ended March 31, 2017 and March 31, 2016.
+Note 75
+Year ended
+March 31, 2017
+Year ended
+March 31, 2016
+63,350.5
+Cash flow from financing activities
+Consolidated Statement of profit and loss of TARO Group
+FOR THE YEAR ENDED MARCH 31, 2017
+Note 76
+Non - current assets held for sale and discontinued
+operations
+Ind AS 105 requires that asset classified as non- current as per Ind
+AS 1 are not reclassified as current assets until they meet criteria
+to be classified as held for sale. The adopter can opt to either value
+those assets at carrying amount or fair value less cost of sale at the
+transition date and record any difference between such amount
+and carrying value directly to retained earnings. The Group has
+applied for this exemption.
+Business Combinations
+Ind AS 101 provides the option to apply Ind AS 103 prospectively
+from the transition date or from a specific date prior to the
+transition date. This provides relief from full retrospective
+application that would require restatement of all business
+combinations prior to the transition date. The Group elected to
+apply Ind AS 103 prospectively to business combinations occurring
+after its transition date. Business combinations occurring prior to
+the transition date have not been restated.
+xi Share-based payment transactions
+As per previous GAAP, the Group had applied the fair value
+recognition and measurement principles similar to those prescribed
+The Group has applied the requirements in paragraph B5.1.2A (b)
+of Ind AS 109 prospectively to transactions entered into on or after
+the date of transition to Ind AS. This exemption has been availed
+by the Group.
+260
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+i
+X
+viii Fair value measurement of financial assets and financial
+liabilities at initial recognition
+FIRST TIME IND AS ADOPTION RECONCILIATION
+Explanation to transition to Ind AS
+=:
+Ind AS 101 -"First-time Adoption of Indian Accounting Standards"
+requires that all Ind AS standards and interpretations that are
+issued and effective for the first Ind AS consolidated financial
+statements which is for the year ended March 31, 2017 for
+the Group, be applied retrospectively and consistently for all
+financial years presented. Except for the Group has availed certain
+exemptions and complied with the mandatory exceptions provided
+in Ind AS 101, as described below. The Group has recognised
+all assets and liabilities whose recognition is required by Ind AS
+and has not recognised items of assets or liabilities which are not
+permitted by Ind AS, reclassified items from previous GAAP to Ind
+AS as required under Ind AS and applied Ind AS in measurement of
+recognised assets and liabilities.
+Set out below are the Ind AS 101 optional exemptions availed as
+applicable and mandatory exceptions applied in the transition from
+previous GAAP to Ind AS.
+Derecognition of financial assets and financial liabilities
+The Group has applied the derecognition requirements of financial
+assets and financial liabilities prospectively for transactions
+occurring on or after the transition date.
+iii Hedge accounting
+ix
+At the date of transition to Ind AS, the Group has measured all
+derivatives at fair value and eliminated all deferred losses and
+gains arising on derivatives that were reported in accordance with
+previous GAAP as if they were assets or liabilities.
+V
+Deemed cost of property, plant and equipment and other
+intangible assets
+On transition to Ind AS, the Parent Company and the Indian
+subsidiaries have elected to continue with the carrying value of all
+of its property, plant and equipment and other intangible assets
+recognised as at April 01, 2015 measured as per the previous
+GAAP and use that carrying value as the deemed cost of the
+property, plant and equipment and other intangible assets.
+vi Designation of previously recognised financial instruments
+Ind AS 101 allows an entity to designate investments in equity
+instruments at FVTOCI on the basis of the facts and circumstances
+at the date of transition to Ind AS. The Group has elected to apply
+this exemption for its investments in certain equity instruments.
+vii Compound financial instruments
+Under Ind AS 32, the Group should split compound financial
+instruments into separate equity and liability components. Ind
+AS 101 provides that if the liability component is no longer
+outstanding at the date of transition, a first-time adopter does
+not have to separate it from the equity component. The Group
+has elected to apply this exemption for its compound financial
+instruments.
+iv Classification and measurement of financial assets
+The Group has assessed conditions for classification of the
+financial assets on the basis of the facts and circumstances that
+were exist on the date of transition to Ind AS.
+under Ind AS 102 for all options granted before the Transition Date. Consequently, this exemption was not required to be applied.
+* in Million
+83,946.8
+SUN
+ANNUAL REPORT 2016-17 263
+The preparation of the Group's financial statements requires the
+management to make judgements, estimates and assumptions that
+affect the reported amounts of revenues, expenses, assets and
+liabilities, and the accompanying disclosures, and the disclosure of
+contingent liabilities. Actual results may differ from these estimates.
+Estimates and underlying assumptions are reviewed on an ongoing
+basis. Revisions to accounting estimates are recognised in the period
+in which the estimates are revised and in any future periods affected.
+In particular, information about significant areas of estimation
+uncertainty and critical judgments in applying accounting policies that
+have the most significant effect on the amounts recognised in the
+consolidated financial statements is included in the following notes:
+USE OF ESTIMATES AND JUDGEMENTS
+Note 77
+Other Ind AS adjustments mainly pertains to difference in loss
+on disposal of foreign subsidiaries, determined under Ind AS
+as compared to previous GAAP, in view of the Group availing
+exemption as referred to in note 76(xiii) and difference in
+treatment of cumulative translation differences on translation
+of foreign operations.
+PHARMA
+CORPORATE OVERVIEW 01-07
+08-79 FINANCIAL STATEMENTS 80-278
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+* in Million
+Profit/(loss) allocated to non-
+controlling interests
+STATUTORY REPORTS
+Accumulated non-controlling interests
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+1
+Provisions [Refer note 2(n)]
+5
+Significant judgements are involved in determining the
+provision for income taxes, if any, including amount expected
+to be paid/recovered for uncertain tax positions. Further,
+significant judgement is exercised to ascertain amount of
+deferred tax asset (DTA) that could be recognised based on the
+probability that future taxable profits will be available against
+which DTA can be utilized and amount of temporary difference
+Tax expense [Refer Note 2(r)]
+The employment benefit obligations depends on a number
+of factors that are determined on an actuarial basis using a
+number of assumptions. The assumptions used in determining
+the net cost/ (income) include the discount rate, inflation and
+mortality assumptions. Any changes in these assumptions
+will impact upon the carrying amount of employment benefit
+obligations.
+Assets and obligations relating to employee benefits (Refer
+note 56)
+FOR THE YEAR ENDED MARCH 31, 2017
+Property, plant and equipment and other intangible assets
+represent a significant proportion of the asset base of the
+Group. The charge in respect of periodic depreciation and
+amortisation is derived after determining an estimate of an
+asset's expected useful life and the expected residual value
+at the end of its life. The useful lives and residual values of
+Group's assets are determined by the management at the
+time the asset is acquired and reviewed periodically, including
+at each financial year end. The lives are based on historical
+experience with similar assets as well as anticipation of
+future events, which may impact their life, such as changes in
+technical or commercial obsolescence arising from changes
+or improvements in production or from a change in market
+demand of the product or service output of the asset.
+When the fair values of financials assets and financial liabilities
+recorded in the financial statements cannot be measured based
+on quoted prices in active markets, their fair value is measured
+using valuation techniques which involve various judgements
+and assumptions.
+4
+3
+2
+in which DTA can not be recognised on want of probable
+taxable profits.
+Fair value measurement of Financial Instruments
+Useful lives of property, plant and equipment and intangible
+assets (Refer note 2)
+(556.6)
+(19,366.3)
+Year ended
+March 31, 2017
+37,908.6
+40,852.5
+28,511.9
+The summarised consolidated financial information of TARO Group before inter-company eliminations:
+Consolidated balance sheet of TARO Group
+Non-current assets
+11,126.0
+Non-current liabilities
+Current liabilities
+As at March
+31, 2017
+34,063.2
+113,879.1
+(277.6)
+(13,248.8)
+As at March
+31, 2016
+27,934.4
+115,314.4
+(256.4)
+(14,691.7)
+* in Million
+As at April
+01, 2015
+24,493.7
+Current assets
+Name of Subsidiary
+8,818.6
+controlling interests
+TARO Group
+8,599.9
+Individually immaterial subsidiaries with non-
+218.7
+Year ended
+March 31, 2016
+11,037.8
+88.2
+As at March
+31, 2017
+Total
+As at March
+31, 2016
+36,547.7
+1,360.9
+39,800.3
+1,052.2
+k) Other Ind AS adjustments
+As at April
+6
+xii Non-controlling interests
+xiii Cumulative translation differences on foreign operations
+Net cash flows from operating activities
+Net cash flows from investing activities
+Net cash flows from financing activities
+Net increase in cash and cash equivalents
+Net increase in cash and cash equivalents represents:
+Previous GAAP
+67,693.8
+(44,549.1)
+(19,243.2)
+3,901.5
+Effect of Ind AS adoption on the statement of cash flow for the year ended March 31, 2016
+in Million
+Ind AS
+(835.2)
+66,858.6
+833.2
+(43,715.9)
+357.9
+Effect of
+transition
+to Ind AS
+(18,885.3)
+58,251.6
+12,794.5
+389.7
+Recognition of intangible assets not eligible for recognition under previous GAAP
+d
+30.1
+Provision for expected credit losses
+f
+Total comprehensive income pertaining to the owners of the company
+(82.4)
+131.5
+k
+(1,263.6)
+Profit for the year as per Ind AS - attributable to the owners of the company
+45,457.1
+Other comprehensive income (net of tax)
+Tax impact on Ind AS adjustments (including on unrealised intra group profits on inventories)
+Other Ind AS adjustments
+e
+355.9
+(i) Movement in cash credit facilities considered as a component of cash and cash equivalents under Ind AS which as per previous GAAP, was considered as
+financing activity.
+Under Ind AS, separately acquired intangible assets shall be
+capitalised which were not eligible for capitalisation under
+previous GAAP.
+Employee benefits
+Under previous GAAP, actuarial gains and losses were recognised
+in consolidated statement of profit and loss. Under Ind AS, the
+actuarial gains and losses form part of remeasurement of net
+defined benefit liability / asset, which is recognised in other
+comprehensive income in the respective periods.
+f) Expected credit loss
+Under previous GAAP, the Group had created provision for
+doubtful debts based on specific amount for incurred losses.
+Under Ind AS, the allowance for doubtful debts has been
+determined based on expected credit loss model.
+g) Effect of measuring financial instruments at fair value
+through OCI
+d) Separately acquired intangible assets
+Under Ind AS, the Group has measured financial instruments at
+fair value through OCI, which were not applicable in previous
+GAAP.
+i)
+Under previous GAAP, non current investments were stated at
+cost less provision, if any, for other than temporary diminution
+in value. Current investments were valued at lower of cost and
+fair value. Under Ind AS, gains or losses on investments have
+been measured at fair value through profit or loss.
+Retrospective application of Ind AS 21 to goodwill arising
+in business combinations occurred before the date of tran-
+sition to Ind AS
+Under Ind AS, retrospective application of Ind AS 21 to
+goodwill arising in business combinations occurred before the
+date of transition to Ind AS, which has resulted in increase in
+equity.
+j)
+Tax impact on Ind AS adjustments
+h) Effect of measuring investments at fair value through profit
+or loss
+4,257.4
+c) Discounting/(unwinding of discount) on provisions
+Under Ind AS, long term provisions are to be measured at
+present value at the date of transition.
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+(ii) Consideration paid for obtaining control of subsidiaries / business unit being disclosed as net of cash and cash equivalents acquired as part of such transactions
+under Ind AS and
+(iii) Changes in cash and cash equivalent balances due to equity accounting of joint ventures under Ind AS.
+Other Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities and has no
+impact on the net cash flow for the year ended March 31, 2016 as compared with the previous GAAP.
+Footnotes:
+a) Proposed Dividend (including corporate dividend tax)
+Under Ind AS, dividend to holders of equity instruments is recognised as a liability in the period in which the obligation to pay is
+established. Under previous GAAP, dividend proposed was recorded as a provision in the period to which it relates.
+FOR THE YEAR ENDED MARCH 31, 2017
+b) Derivative instruments at fair value through profit or loss
+262
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+Under previous GAAP, derivative instruments entered into for hedging the foreign currency fluctuation risk were accounted for on the
+principles of prudence. Pursuant to this, losses, if any, on Mark to Market basis, were recognised and gains were not recognised. Under
+Ind AS, gains on derivative instruments have been measured at fair value through profit or loss.
+Ind AS 110 requires entities to attribute the profit or loss and each component of other comprehensive income to the owners of the parent
+and to the non-controlling interests. Ind AS 110 requires the above requirement to be followed prospectively from the date of transition.
+Consequently, the group has applied the above requirement prospectively.
+Remeasurement of defined benefit obligation recognised in OCI under Ind AS
+C
+922.5
+823.8
+Discount / (Unwinding of discount) on provisions
+C
+885.1
+1,382.3
+b
+Recognition of intangible assets not eligible for recognition under previous GAAP
+Provision for expected credit losses
+30.1
+f
+(201.2)
+(118.8)
+Effect of measuring financial instruments at fair value through OCI
+g
+d
+4,069.3
+Effect of measuring derivative instruments at fair value through profit or loss
+2,896.8
+The Group has elected the option to reset the cumulative translation differences on foreign operations that exists as of the transition date to zero.
+xiv Excise duty
+Under the previous GAAP, excise duty was netted off against sale of products. However, under Ind AS, excise duty is included in sale of
+products and is separately presented as expense in the consolidated statement of profit and loss.
+Reconciliation of total equity
+Equity as per previous GAAP *
+Footnote
+No.
+8,689.2
+As at
+March 31,
+* in Million
+As at
+April 01,
+2015
+314,042.2
+256,231.9
+Add / (Less): Adjustments for GAAP Differences
+Adjustment for proposed dividend (including corporate dividend tax)
+a
+2016
+(497.2)
+6,883.5
+h
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Footnote
+No.
+in Million
+Year ended
+March 31, 2016
+Reconciliation of total comprehensive income
+PHARMA
+Profit for the year as per previous GAAP
+Add/(Less): Adjustments for GAAP Differences
+Effect of measuring derivative instruments at fair value through profit or loss
+Effect of measuring investments at fair value through profit or loss
+Discount / (Unwinding of discount) on provisions
+b
+98.7
+h
+(508.8)
+47,159.1
+Effect of measuring investments at fair value through profit or loss
+SUN
+280,414.5
+72.8
+581.6
+Retrospective application of Ind AS 21 to goodwill arising in business combinations occurred
+before the date of transition to Ind AS
+i
+5,422.3
+4,417.4
+ANNUAL REPORT 2016-17 261
+Tax impact on Ind AS adjustments (including on unrealised intra group profits on inventories)
+Other Ind AS adjustments
+1,518.8
+166.1
+1,387.3
+136.3
+Equity as per Ind AS
+Equity as per previous GAAP includes share capital, share suspense account and reserves and surplus.
+329,824.8
+j
+7
+Write down in value of inventories (Refer Note 11)
+Contingencies (Refer note 40)
+8
+TCI
+OCI
+* In Million
+In Million consolidated
+In Million consolidated
+As % of
+51.6
+As % of
+* In Million
+As % of
+consolidated
+net assets
+Share in Total
+Comprehensive Income
+(TCI)
+2016-17
+Share in Other
+Comprehensive Income
+(OCI)
+2016-17
+2016-17
+2016-17
+As % of
+consolidated
+profit or
+(loss)
+Share in profit or (loss)
+208,715.1
+(349.5)
+2
+(0.5)
+(0.0)
+(0.5)
+(0.0)
+1.6
+(0.5)
+0.0
+1
+Indian
+(983.3)
+(1.7)
+(633.8)
+4.8
+Green Eco Development Centre Limited
+Sun Pharma Laboratories Ltd
+Net Assets, i.e., total assets
+minus total liabilities
+Name of the Entity
+373.7
+2,510.4
+Total purchase price
+Goodwill
+Total identifiable assets at fair value
+Other current liabilities
+7,096.6
+Provision for employee benefits
+Other intangible assets
+Property, plant and equipment
+Previous GAAP figures have been reclassified/regrouped
+wherever necessary to conform with the consolidated financial
+statements prepared under Ind AS.
+b)
+a) Figures pertaining to the subsidiary companies have been
+reclassified wherever necessary to bring them in line with the
+group financial statements.
+Note 80
+Liabilities
+Parent Entity - Sun Pharmaceutical Industries Limited
+Subsidiaries
+(224.7)
+(376.1)
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint ventures
+as per Schedule III of Companies Act, 2013:
+(Annexure 'A')
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+08-79 FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+(151.4)
+CORPORATE OVERVIEW 01-07
+266
+* 4,744.6 million and loss before tax of 345.2 Million in the current
+year.
+281.1 million during the seven months of 2016 and revenue of
+GSK opiate business had revenue of 2,063.9 Million and loss of
+6,720.5
+6,720.5
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+During the year ended March 31, 2016, the Group acquired
+portfolio consisting of 14 established prescription brands
+from Novartis AG and Novartis Pharma AG in Japan for a cash
+consideration of USD 293 Million equivalent to 19,414.2
+Million approximately.
+48.9
+10.9
+0.0
+1,893.4
+0.5
+Ranbaxy Drugs Limited
+8
+0.4
+0.3
+0.0
+0.0
+10.6
+0.0
+Softdeal Trading Company Private Limited
+7
+(0.0)
+0.4
+(0.0)
+0.0
+9
+0.0
+0.1
+0.0
+4.5
+0.0
+Gufic Pharma Limited
+0.3
+10
+0.0
+2.5
+0.0
+27.4
+0.0
+Vidyut Investments Limited
+2.5
+197,557.8
+(0.0)
+0.1
+4
+0.3
+0.0
+0.3
+0.0
+11.1
+Neetnav Real Estate Private Limited
+0.0
+3
+7,477.3
+13.3
+(107.0)
+0.8
+7,584.3
+Faststone Mercantile Company Private Limited
+(0.0)
+0.0
+0.0
+0.0
+Skisen Labs Private Limited
+6
+0.4
+0.0
+0.4
+15.2
+0.0
+0.0
+Realstone Multitrade Private Limited
+5
+0.8
+0.0
+0.8
+11.1
+During the December 2016, the Group acquired a branded
+oncology product, Odomzo, from Novartis for an upfront
+payment of USD 175 Million equivalent to 11,884.3 Million
+approximately and additional milestone payments.
+Note 79
+b)
+The business acquisition was conducted by entering into a
+share purchase agreement for cash consideration of ₹ 1,539.2
+Million.
+On December 20, 2016, the Group completed the acquisition
+of 85.1% shares of JSC Biosintez, a Russian pharmaceutical
+company focused on the hospital segment with an objective to
+acquire the product portfolio and local manufacturing capability
+in Russia which would help in expanding our presence in Russia
+and serving Russia pharmaceutical market more effectively. The
+excess of the purchase consideration paid over the fair value of
+assets acquired has been attributed to goodwill. The goodwill is
+not tax deductible.
+b) JSC Biosintez
+There has not been any contribution to group revenue on account of
+this business purchase. The business acquired has contributed a net
+loss of * 13.5 Million from the date of acquisition.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+The Group has elected to measure the non-controlling interests
+in the acquiree at its proportionate share of net assets.
+FINANCIAL STATEMENTS 80-278
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+264
+The gross amount of trade receivables acquired have been largely
+collected.
+The goodwill is tax deductible.
+08-79
+Total purchase price
+The following assets and liabilities were recognised in the
+acquisition (at fair value):
+Cash and cash equivalents
+Other current assets
+2.8
+1,028.5
+399.9
+Inventories
+Trade receivables
+In Million
+Assets
+Assets
+The following assets and liabilities were recognised as at the
+date of acquisition (at fair value):
+On November 02, 2015, the Group acquired 100% shares
+of Insite Vision Incorporated along with its subsidiary Insite
+Vision Limited (together referred as "Insite”). Accordingly, the
+results of operations for Insite have been included in these
+consolidated financial statements from that date forward. The
+Group acquired Insite to facilitate its entry and expansion into
+the ophthalmic market in the United States. The excess of
+the purchase consideration paid over the fair value of assets
+acquired has been attributed to goodwill. The goodwill is not
+tax deductible.
+c) Insite Vision Incorporated
+Transaction costs of ₹ 97.9 million have been expensed and are
+included in other expenses in the consolidated statement of profit
+and loss.
+From the date of acquisition, JSC Biosintez has contributed
+revenue of * 907.2 million and profit before tax of 43.0 million
+to the Group. If the business combinations had taken place at the
+beginning of the year, revenue would have been 3,308.7 million
+and the profit before tax would have been 216.8 million.
+The gross amount of trade receivables acquired have been largely
+collected.
+In Million
+The business acquisition was conducted by entering into a
+share purchase agreement for cash consideration of ₹ 4,688.4
+Million.
+31.9
+9.9
+8.9
+307.7
+48.0
+0.2
+* In Million
+Cash and cash equivalents
+Trade receivables
+Inventories
+Assets
+Other current assets
+The following assets and liabilities were recognised as at the
+date of acquisition (at fair value):
+a) Acquisition of plant (Baska, Gujarat) from Unimed
+Technologies Limited
+BUSINESS COMBINATIONS
+Note 78
+Impairment of goodwill (Refer note 48)
+9
+Business combinations (Refer note 78)
+On March 25, 2017, the Group completed the acquisition
+of the manufacturing undertaking of Unimed Technologies
+Limited located at Baska, Gujarat which is engaged in the
+manufacturing of pharmaceutical products, on a slump sales
+basis to continue expansion of our business. The acquisition
+price of 10.0 Million was paid in cash.
+1.0
+371.1
+10.6
+Total identifiable assets at fair value
+Goodwill
+(1,884.3)
+Further, deferred tax assets on unabsorbed depreciation and
+carry forward of losses was recognised only to the extent
+of virtual certainty supported by convincing evidence under
+previous GAAP as against recognition of such assets under Ind
+AS to the extent that it is probable that the said assets would
+be utilised.
+(122.4)
+Other current financial liabilities
+Borrowings
+(13.7)
+Other non-current financial assets
+Provision for employee benefits
+Trade payables
+Liabilities
+1,893.2
+633.5
+522.1
+Capital work-in-progress
+Property, plant and equipment
+(748.2)
+Other non-current assets
+60.9
+Property, plant and equipment
+4,738.6
+Total purchase price
+1,539.2
+Total purchase price
+112.6
+Goodwill
+ANNUAL REPORT 2016-17
+445.0
+Total identifiable assets at fair value
+Goodwill
+Group's proportionate share in net assets
+(249.7)
+Non-controlling interest measured at the
+(533.6)
+14.9%
+4,293.6
+Non-controlling interest
+265
+PHARMA
+a)
+4,212.5
+In Million
+Inventories
+Assets
+The following assets and liabilities were recognised as at the
+date of acquisition (at fair value):
+SUN
+On September 01, 2015, the Group completed the acquisition
+of GlaxoSmithKline's (GSK's) opiates business in Australia,
+strengthening its active pharmaceutical ingredients (API) and
+analgesic drug segments. This acquisition also enhances the
+opiate alkaloids portfolio of the group and depth in global
+opiates market. The acquisition price of 6,720.5 million was
+paid/payable in cash.
+Transaction costs of 68.2 million have been expensed and are
+included in other expenses in the consolidated statement of profit
+and loss.
+InSite Vision Incorporate had revenue of 50.7 Million and loss
+before tax of * 459.4 Million during the five months of 2016. If the
+business combinations had taken place at the beginning of the year,
+revenue would have been ₹ 369.1 Million and the loss before tax
+would have been 1,561.1 Million.
+Transaction costs of 47.8 Million have been expensed and are
+included in other expenses in the consolidated statement of profit
+and loss.
+The gross amount of trade receivables acquired have been largely
+collected.
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+d) Acquisition of GSK's opiate business in Australia
+(276.1)
+Other current liabilities
+1,676.3
+13.0
+Other current assets
+5,378.6
+10.5
+Trade receivables
+69.7
+Liabilities
+Intangible assets under development
+Cash and cash equivalents
+3.5
+Other intangible assets
+259.4
+Capital work-in-progress
+3,522.0
+214.3
+Borrowings
+(2,617.9)
+Property, plant and equipment
+Total identifiable assets at fair value
+(257.5)
+Trade payables
+(3,702.3)
+Liabilities
+(336.2)
+Deferred tax liabilities
+4,827.2
+(41.5)
+Other current liabilities
+4,501.9
+Intangible assets under development
+(706.7)
+Trade payables
+87.5
+11
+01, 2015
+27,551.9
+960.0
+13.02.2014 06.06.2011 28.10.2013 24.03.2015 24.10.2013 21.04.2014
+Hasmukh S. Shah
+14.9
+61.7
+147.8
+558.3
+Joint Venture (March 31, 2016: ₹ 44,016)
+11.6
+0.1
+Associates
+3.2
+Enterprise under significant Influence of Key managerial Personnel or their relatives
+Reimbursement of Expenses Received
+136.2
+555.0
+290.1
+41.6
+Enterprise under significant Influence of Key managerial Personnel or their relatives
+Unconsolidated Subsidiary
+289.8
+41.6
+69.9
+70.4
+Interest Income
+0.1
+Unconsolidated Subsidiary
+327.1
+Enterprise under significant Influence of Key managerial Personnel or their relatives
+Rendering of Service
+Joint Venture
+1,856.0
+Associates (Refer Note 67)
+1,071.6
+1,856.1
+Purchase of Investment in Associates and Joint Venture and Unconsolidated Subsidiary
+0.3
+744.5
+Associates
+0.0
+2.8
+Enterprise under significant Influence of Key managerial Personnel or their relatives
+Purchase of Property, Plant and Equipment and other intangible assets
+Enterprise under significant Influence of Key managerial Personnel or their relatives
+15.3
+1.1
+885.4
+4.0
+885.4
+4.0
+Sale of goods
+103.4
+881.9
+Associates
+38.8
+871.9
+Enterprise under significant Influence of Key managerial Personnel or their relatives
+Sale of Property, Plant and Equipment and other intangible assets
+64.6
+10.0
+Associates
+61.7
+17.7
+1,110.1
+1,013.6
+Enterprise under significant Influence of Key managerial Personnel or their relatives
+Reimbursement of Expenses Paid
+Key managerial personnel (₹ 45,815)
+506.2
+Enterprise under control of Key managerial Personnel or their relatives
+1,616.3
+1,296.6
+0.4
+Enterprise under significant Influence of Key managerial Personnel or their relatives
+Receiving of Service
+0.4
+283.0
+20.6
+70.4
+Lease Rental and Hire Charges
+Balance Outstanding as at the end of the year
+Receivables
+Joint Venture
+Associates
+As at March
+31, 2017
+As at March
+31, 2016
+1,130.4
+in Million
+As at April
+01, 2015
+669.0
+624.9
+0.9
+1.3
+1.8
+666.3
+623.6
+153.7
+Key managerial personnel
+32.1
+13.5
+137.7
+Associates
+FOR THE YEAR ENDED MARCH 31, 2017
+350.8
+833.8
+Payables
+0.8
+Unconsolidated Subsidiary
+1,129.6
+Enterprise under significant influence of key managerial personnel or their
+relatives
+176.1
+69.9
+FINANCIAL STATEMENTS
+08-79 FINANCIAL STATEMENTS 80-278
+51.1
+48.7
+Enterprise under significant influence of key managerial personnel or their relatives
+51.1
+48.7
+Provision for doubtful Loans and Interest accrued and due on Loans
+63.4
+389.5
+Associates
+63.4
+389.5
+Remuneration
+294.9
+255.4
+Key Managerial Personnel (Refer note 64)
+281.6
+242.4
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+Particulars
+272 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+52.1
+52.1
+NOTES TO THE CONSOLIDATED
+8.0
+13.0
+13.3
+Enterprise under control of Key Managerial Personnel or their relatives
+Corporate Social Responsibility Expense
+Director's Sitting Fees
+Relatives of key Managerial personnel
+9.5
+102.3
+12.9
+28.2
+(11,126.0)
+(12.2)
+(1,558.9)
+(21.8)
+(12,684.9)
+2 Daiichi Sankyo (Thailand) Ltd.
+0.1
+444.5
+0.0
+3.3
+0.0
+3.3
+2
+Foreign Joint Ventures (Investment as per the equity method)
+MSD - Sun LLC (Consolidated with its subsidiary)
+Intercompany Elimination and Consolidation Adjustments
+Total
+0.0
+(187.5)
+100.0
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+270
+The above amounts / percentage of net assets and net profit or (loss) in respect of the Parent Company, its subsidiaries, associates and joint ventures are determined based on the amounts of the respective
+entities included in consolidated financial statements before inter-company eliminations / consolidation adjustments.
+# Includes share of profit and share of TCI, from its associates and a joint venture of 156.0 million
+Includes share of loss and share of TCI, from a joint venture of 13.2 million
+(24.5)
+180.4
+17,945.1
+58,251.6
+12,571.5
+12,794.5
+98.3
+100.0
+180.4
+5,373.6
+45,457.1
+0.4
+11.8
+100.0
+(695,155.0)
+370,677.3
+0.7
+0.3
+30.8
+100.0
+08-79
+40,852.5
+Foreign
+3,905.3
+60
+Ranbaxy (Thailand) Company Limited
+0.0
+65.0
+0.0
+0.9
+0.0
+0.9
+61
+Sun Pharmaceuticals Morocco LLC (Formerly known as
+(0.0)
+(124.5)
+(0.0)
+(19.0)
+(0.0)
+(19.0)
+Zenotech Laboratories Limited
+1
+Indian
+Associates (Investment as per the equity method)
+Non Controlling Interest in all subsidiaries
+25.0
+11.0
+0.0
+0.1
+86.5
+0.0
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+62
+Ranbaxy Morocco LLC)
+25.0
+21.7
+FINANCIAL STATEMENTS 80-278
+FOR THE YEAR ENDED MARCH 31, 2017
+e Joint Venture
+S&I Ophthalmic LLC
+f
+Associates
+Zenotech Laboratories Limited
+Daiichi Sankyo (Thailand) Ltd.
+Medinstill LLC
+Frazier Healthcare VII, L.P.
+g
+Versant Venture Capital V, L.P.
+scPharmaceuticals Inc.
+Trumpcard Advisors and Finvest LLP
+Generic Solar Power LLP
+Unconsolidated Subsidiary
+Foundation for Disease Elimination and Control of India
+Non-Executive Director
+Non-Executive Director
+March 31, 2016
+March 31, 2017
+Associates
+Purchase of goods
+Particulars
+* in Million
+PV Power Technologies Pvt. Ltd.
+FOR THE YEAR ENDED MARCH 31, 2017
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 271
+Non-Executive Director
+Non-Executive Director
+Non-Executive Director
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+Alfa Infraprop Pvt. Ltd.
+Sun Pharma Advanced Research Company Ltd
+(Annexure 'B')
+Ind AS-24 - " RELATED PARTY DISCLOSURES"
+Names of related parties where there are transactions and description of relationships
+a
+Key Managerial Personnel
+Dilip S. Shanghvi
+Sudhir V. Valia
+Sailesh T. Desai
+Israel Makov
+Kalyansundaram Subramanian (w.e.f. February 14, 2017)
+S. Mohanchand Dadha
+Managing Director
+Executive Director
+Executive Director
+Chairman and Non-Executive Director
+Executive Director
+Hasmukh S. Shah
+Enterprise under significant Influence of Key managerial Personnel or their relatives
+Dadha Pharma Pvt. Ltd.
+Shantilal Shanghvi Foundation
+Makov Associates Ltd
+Enterprise under control of Key Managerial Personnel or their relatives
+Vidhi Shanghvi
+Sun Petrochemicals Pvt Ltd
+Aalok Shanghvi
+Rekha Sethi
+Ashwin S. Dani
+d
+C
+b
+Keki M. Mistry
+Relatives of Key Managerial Personnel
+119.6
+Relatives of key managerial personnel
+0.6
+25.03.2012
+20.09.2011
+12.01.2012
+Morley & Company, Inc.
+Taro Pharmaceutical Industries Ltd. (TARO)
+09.03.2012
+05.05.1983
+20.09.2010
+Taro Pharmaceuticals Inc.
+Taro Pharmaceuticals U.S.A., Inc.
+20.09.2010
+20.09.2010
+Taro Pharmaceuticals North America, Inc.
+20.09.2010
+Taro Pharmaceuticals Europe B.V.
+Taro Pharmaceuticals Ireland Limited
+Taro International Ltd.
+Taro Pharmaceuticals (UK) Limited
+20.09.2010
+20.09.2010
+20.09.2010
+*b*XXX@@@@@@@@888889999*19533333333
+1.00
+(0.5)
+(0.5)
+327.5
+1,351.5
+1.7
+0.1
+1,298.6
+356.4
+53,082.4 56,196.1
+780.2 2,987.5
+858.4
+(2,322.0)
+764.0
+3.5
+08.12.2011
+3.47
+13,856.9
+114.8
+20.59
+64.86
+48.4
+0.81
+7.0
+(5.4)
+893.8
+(16,970.6)
+100.00%
+01.03.2012
+13.03.2011
+Date since
+when
+subsidiary
+Reporting
+Currency
+Rate Capital
+Reserve
+Total
+Total
+Assets Liabilities
+was
+Investment
+Other than
+Investment
+in Subsidiary
+Turnover
+Profit
+/ (Loss)
+before
+Taxation
+Profit
+Provision
+for
+Taxation
+/ (Loss) Proposed
+% of
+after Dividend Shareholding
+Taxation
+acquired
+PQ0x000000==QX34A88XXXXXXXXXX85x8x8x===*
+Green Eco Development Centre Limited
+23.06.2009
+22.10.2008
+27.04.2009
+11.08.2008
+10.02.2009
+25.11.2008
+22.04.2007
+29.06.2007
+14.04.2008
+Sun Pharmaceutical Industries (Australia) Pty Ltd 11.03.2008
+20.09.2010
+05.08.2005
+20.06.2005
+13.04.2011
+06.11.2011
+24.11.2008
+12.11.2010
+Sun Pharma Laboratories Ltd
+Aditya Acquisition Company Ltd.
+Sun Pharmaceutical Industries (Europe) B.V.
+Sun Pharmaceuticals Italia S.R.L.
+Sun Pharmaceuticals Spain, S.L.U.
+Sun Pharmaceuticals Germany GmbH
+Sun Pharmaceuticals France
+Sun Pharma Global FZE
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+Sun Global Canada Pty. Ltd.
+Sun Laboratories FZE
+Sun Global Development FZE
+Sun Pharma Japan Ltd.
+Sun Pharma Philippines, Inc.
+Sun Pharma Healthcare FZE
+Sun Pharmaceuticals Korea Ltd.
+Caraco Pharmaceuticals Private Limited
+The Taro Development Corporation
+Alkaloida Chemical Company Zrt.
+Sun Pharmaceuticals UK Limited
+Chattem Chemicals Inc.
+Sun Pharmaceutical (Bangladesh) Limited
+Sun Pharmaceutical Industries, Inc.
+Sun Farmaceutica do Brasil Ltda.
+Sun Pharma De Mexico S.A. DE C.V.
+SPIL De Mexico S.A. DE C.V.
+Sun Pharmaceutical Peru S.A.C.
+OOO "Sun Pharmaceutical Industries" Limited
+Sun Pharma De Venezuela, C.A.
+29.03.2001
+14.06.2011
+22.05.2009
+03.12.2002
+13.02.2002
+27.06.2006
+12.11.2007
+No
+119.6 207.9
+5,085.6 27,948.8 (9,047.8)
+100.00%
+6.49
+0.3
+(1,444.8)
+1.1
+1,445.6
+6.5
+(314.7)
+(314.7)
+64.86
+64.86
+2,233.2
+0.0
+1,436.2
+3,852.4
+183.0
+1,481.3
+(143.2)
+(0.0)
+(0.4) 1,287.7 1,288.1
+18,735.1
+(91.6)
+(735.1)
+20
+6.0
+0.0
+17.84
+(25.6)
+2,710.9
+5,789.0
+0.1
+80.83
+64.86
+100.00%
+100.00%
+(95.6)
+(47.6)
+49.61
+72.50%
+5.1
+143.0
+(3,223.7) (5,824.0)
+100.00%
+-
+1,107.1
+199.5
+199.5
+100.00%
+90.9
+1,131.6
+173.8
+59.0
+114.9
+75.00%
+3.47
+0.2
+0.2
+100.00%
+213.5
+42.1
+(171.5)
+0.1
+1.16
+99.33%
+(20.5)
+(27.0)
+(27.0)
+155.0
+0.2
+(154.9)
+0.0
+19.96
+-
+Name of the Subsidiary Company
+Sr
+FINANCIAL STATEMENTS
+TO THE CONSOLIDATED
+Sun Pharma Advanced Research Company Ltd
+Makov Associates Ltd
+Reimbursement of Expenses Paid
+Sun Pharma Advanced Research Company Ltd
+Rendering of Service
+Sun Pharma Advanced Research Company Ltd
+* in Million
+March 31, 2017 March 31, 2016
+12.9
+10.9
+20.5
+1.1
+885.4
+4.0
+38.8
+64.6
+871.9
+10.0
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+PHARMA
+SUN
+273
+ANNUAL REPORT 2016-17
+Receiving of Service
+555.0
+61.7
+14.9
+1,368.7
+247.6
+283.0
+1,013.6
+0.4
+136.2
+Particulars
+Sun Petrochemicals Pvt Ltd
+Sun Pharma Advanced Research Company Ltd
+2.4
+1.2
+Enterprise under control of Key managerial Personnel or their relatives
+126.0
+57.9
+166.4
+Enterprise under significant influence of key managerial personnel or their
+relatives
+415.8
+31.5
+Deposit Received
+Enterprise under significant influence of key managerial personnel or their
+relatives
+66.2
+66.2
+66.2
+66.2
+Loan Given
+Associates *
+Daiichi Sankyo (Thailand) Ltd.
+Sale of goods
+Sun Pharma Advanced Research Company Ltd
+Purchase of Property, Plant and Equipment and other intangible assets
+Sun Pharma Advanced Research Company Ltd
+Zenotech Laboratories Limited
+Sale of Property, Plant and Equipment and other intangible assets
+Purchase of goods
+Disclosure in respect of material transaction with related parties.
+Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term
+employee benefits recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee benefits are lump sum
+amount provided on the basis of actuarial valuation, the same is not included above and there is no Share-based payments to key managerial
+personnel of Company.
+* Net of Provision for doubtful loans and interest accrued and due on loans thereof 726.9 Million [ March 31, 2016: 663.5 Million; April 01, 2015: 274.0
+Million] (Refer Note 70)
+326.8
+326.8
+454.0
+454.0
+Particulars
+Reimbursement of Expenses Received
+Sun Pharma Advanced Research Company Ltd
+Purchase of Investment in Associates and Joint Venture and Unconsolidated Subsidiary
+70.4
+69.9
+46.8
+47.3
+63.4
+389.5
+151.5
+135.3
+31.6
+12.1
+91.8
+95.0
+12.1
+12.1
+2.0
+1.8
+1.7
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+01-07
+327.1
+CORPORATE OVERVIEW
+STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES / ASSOCIATE COMPANIES /
+JOINT VENTURES
+PURSUANT TO FIRST PROVISO TO SUB-SECTION (3) OF SECTION 129 OF COMPANIES ACT, 2013 WITH THE RULE 5 OF COMPANIES
+(ACCOUNTS) RULES, 2014
+FORM AOC -1
+In Million
+52.1
+1.9
+Part "A": Subsidiaries
+871.9
+331.8
+402.0
+Sailesh T. Desai
+Dilip S. Shanghvi @
+Key managerial personnel
+Remuneration
+Zenotech Laboratories Limited
+Provision for doubtful Loans and Advances
+Sudhir V. Valia #
+Alfa Infraprop pvt. Ltd.
+Zenotech Laboratories Limited
+Interest Income
+S&I Ophthalmic LLC
+scPharmaceuticals Inc.
+Versant Venture Capital V, L.P.
+Frazier Healthcare VII, L.P.
+Lease Rental and Hire Charges
+6.7
+Relatives of key managerial personnel
+Director's Sitting Fees
+412.7
+269.6
+41.6
+289.8
+March 31, 2017 March 31, 2016
+* in Million
+Aalok D. Shanghvi
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+# Net of Refund of Nil (March 31, 2016 1.0 Million) in respect of excess remuneration paid for financial year 2013 -14.
+@ Net of Refund of Nil (March 31, 2016 1.1 Million) in respect of excess remuneration paid for financial year 2013 -14.
+Shantilal Shanghvi Foundation
+Corporate Social Responsibility Expense
+8.6
+S. Mohanchand Dadha
+274
+(0.0)
+3,905.3
+33,590.2
+OOO "Sun Pharmaceutical Industries" Limited
+(0.0)
+(165.0)
+(0.3)
+(123.3)
+(0.2)
+(123.3)
+8
+Sun Pharma De Venezuela, C.A.
+(0.3)
+(1,152.5)
+(1.7)
+(761.7)
+(1.3)
+(761.7)
+9
+Ranbaxy Pharmacie Generiques
+(358.1)
+(0.6)
+(358.1)
+(0.8)
+294.0
+0.1
+7
+Ranbaxy (Malaysia) Sdn. Bhd.
+(125.8)
+(0.2)
+(125.8)
+(0.3)
+(1,623.8)
+(0.4)
+10
+11
+(29.7)
+(29.7)
+(950.4)#
+Subsidiaries, its associates and a Joint venture)
+3
+Sun Farmaceutica Do Brasil Ltda.
+(0.6)
+(2,153.1)
+(1.3)
+(603.4)
+4
+Sun Pharma De Mexico S.A. DE C.V.
+0.2
+710.1
+0.4
+173.2
+0.3
+162.5
+(1.6)
+(0.1)
+(127.9)
+(0.0)
+Sun Pharmaceutical Peru S.A.C.
+6
+0.2
+(0.1)
+0.0
+5
+173.2
+0.3
+(603.4)
+(1.0)
+(950.4)#
+SPIL De Mexico S.A. DE C.V.
+(2.1)
+Ranbaxy Nigeria Limited
+1,055.6
+(246.8)
+16
+Aditya Acquisition Company Ltd.
+0.0
+0.1
+0.0
+(0.0)
+24
+Sun Global Canada Pty. Ltd.
+(0.0)
+(1.2)
+(0.0)
+(0.2)
+(0.0)
+(0.2)
+25
+Sun Pharma Philippines, Inc.
+(0.2)
+(0.0)
+(0.2)
+(0.0)
+4.5
+0.0
+(0.4)
+Sun Pharmaceuticals Korea Ltd.
+(131.1)
+(0.2)
+(131.1)
+(0.3)
+(308.9)
+(0.1)
+26
+0.3
+(246.8)
+2,394.6
+0.2
+104.8
+0.2
+104.8
+12
+Ranbaxy (Netherlands) B.V.
+14.3
+52,964.2
+(7.3)
+(3,326.5)
+(5.7)
+(3,326.5)
+13
+Alkaloida Chemical Company Zrt.
+7.1
+26,395.3
+(1.5)
+0.6
+Sun Pharmaceutical Industries (Australia) Pty Ltd
+15
+(21.2)
+(0.0)
+(21.2)
+(0.5)
+(0.0)
+(0.0)
+Sun Pharmaceuticals UK Limited
+14
+(685.7)
+(1.2)
+(685.7)
+(107.0)
+27
+14,895.4
+Sun Pharmaceutical Industries, Inc. (Consolidated with its
+0.0
+0.1
+0.0
+10.8
+0.0
+Faststone Mercantile Company Private Limited
+3
+6,177.3
+10.6
+(79.6)
+(0.6)
+6,256.9
+13.8
+192,535.8
+51.9
+Sun Pharma Laboratories Ltd
+2
+59.1 218,907.0
+(23.9) (10,875.1)
+(1.9)
+(247.9)
+(19.1) (11,123.0)
+Indian
+0.1
+1
+(0.0)
+(3.8)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+Green Eco Development Centre Limited
+Parent Entity - Sun Pharmaceutical Industries Limited
+Subsidiaries
+4
+0.0
+Ranbaxy Drugs Limited
+8
+0.1
+0.0
+0.1
+0.0
+10.1
+0.0
+Softdeal Trading Company Private Limited
+7
+(155.8)
+(0.3)
+(155.8)
+(0.3)
+0.1
+0.0
+Skisen Labs Private Limited
+15.1
+0.0
+1.0
+0.0
+1.0
+5
+Neetnav Real Estate Private Limited
+Realstone Multitrade Private Limited
+10.8
+0.0
+0.1
+0.0
+0.1
+6
+0.0
+4.0
+TCI
+In Million consolidated * In Million
+4.2
+0.0
+0.2
+0.0
+0.2
+11
+Universal Enterprises Private Limited
+0.0
+5.3
+0.0
+0.0
+0.0
+0.0
+12
+Sun Pharmaceutical Medicare Limited
+0.5
+1,834.1
+2
+162.5
+0.4
+721.1
+0.2
+Sun Pharmaceutical (Bangladesh) Limited
+0.0
+1
+123.0
+0.2
+(1.1)
+(0.0)
+124.1
+0.3
+Foreign
+OCI
+Gufic Pharma Limited
+1.1
+In Million consolidated
+As % of
+As % of
+Share in total
+comprehensive income
+(TCI)
+2015-16
+Share in other
+comprehensive income
+(OCI)
+2015-16
+2015-16
+As % of
+consolidated
+profit or
+(loss)
+net assets
+* In Million
+As % of
+consolidated
+2015-16
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+Name of the Entity
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint ventures
+as per Schedule III of Companies Act, 2013:
+(Annexure 'A')
+FOR THE YEAR ENDED MARCH 31, 2017
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+0.0
+1.1
+0.0
+24.8
+0.0
+Vidyut Investments Limited
+10
+9
+0.0
+0.4
+0.0
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79 FINANCIAL STATEMENTS 80-278
+0.4
+Sun Global Development FZE
+0.1
+185.9
+(345.5)
+47
+Sun Pharmaceutical Industries S.A.C. (Formerly known as
+(0.0)
+(71.4)
+(0.0)
+(22.7)
+(0.0)
+(22.7)
+Ranbaxy - PRP (Peru) S.A.C.)
+48
+Ranbaxy (Poland) Sp. Z o.o.
+0.0
+156.6
+0.0
+16.0
+0.0
+1,945.0
+4.3
+9,204.4
+2.5
+S. C. Terapia S.A.
+50
+(0.6)
+Unipessoal Lda
+(0.0)
+(1.6)
+(0.0)
+Ranbaxy Portugal - Com E Desenvolv DeProd Farmaceuticos
+49
+16.0
+(1.6)
+3.3
+(345.5)
+58.7
+42
+Office Pharmaceutique Industriel Et Hospitalier
+0.0
+70.5
+0.0
+3.5
+0.0
+3.5
+43
+Basics GmbH
+0.2
+872.6
+(0.2)
+(69.1)
+(0.1)
+(69.1)
+44
+0.0
+Ranbaxy Italia S.P.A.
+46
+(345.8)
+(0.6)
+(345.8)
+(0.8)
+(0.8)
+0.3
+Ranbaxy Ireland Limited
+45
+1.9
+0.0
+Ranbaxy GmbH
+963.3
+(1.9)
+1,945.0
+AO Ranbaxy (Formerly Known ZAO Ranbaxy)
+0.4
+183.6
+0.3
+183.6
+56
+Ranbaxy (U.K.) Limited
+0.4
+1,304.8
+0.7
+334.8
+0.6
+334.8
+57
+Ranbaxy Holdings (U.K.) Limited
+0.8
+2,925.9
+(0.0)
+9.1
+Ranbaxy Inc. (Consolidated with its Subsidiaries)
+59
+15.7
+0.0
+15.7
+162.8
+0.0
+0.0
+Ranbaxy Europe Limited
+58
+(0.9)
+(0.0)
+(0.9)
+174.6
+51
+0.0
+55
+0.2
+703.8
+0.5
+205.9
+0.4
+205.9
+52
+Ranbaxy South Africa Proprietary Limited (Consolidated with
+0.1
+553.5
+0.4
+183.3
+0.3
+183.3
+its Subsidiary)
+53
+Ranbaxy Pharmaceutical Proprietary Limited
+(2.0)
+(0.0)
+(2.0)
+(0.0)
+15.9
+0.0
+Laboratorios Ranbaxy, S.L.U.
+Be- Tabs Investments Proprietary Limited
+(1,325.8)
+(2.3)
+(1,325.8)
+(2.9)
+(1,131.3)
+(0.3)
+54
+(0.0)
+(1.9)
+(0.0)
+As % of
+As % of
+In Million consolidated
+In Million consolidated
+* In Million
+net assets
+OCI
+TCI
+(loss)
+30
+Sun Laboratories FZE
+(0.1)
+(238.2)
+(1.9)
+(847.6)
+(1.5)
+(847.6)
+(45.9)
+(0.0)
+Alkaloida Sweden AB
+32
+40,405.7
+69.4
+(TCI)
+2015-16
+4,931.3
+35,474.4
+78.0
+128,300.9
+34.6
+Taro Pharmaceutical Industries Ltd. (TARO)
+31
+38.5
+0.0
+Share in total
+comprehensive income
+2015-16
+As % of
+consolidated
+profit or
+(0.0)
+(0.7)
+(0.0)
+(0.7)
+28
+Sun Pharma Japan Ltd.
+(0.1)
+(339.6)
+(0.2)
+(98.7)
+(0.2)
+(98.7)
+29
+Sun Pharma HealthCare FZE
+0.0
+182.5
+(0.0)
+* In Million
+As % of
+consolidated
+2015-16
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+Name of the Entity
+Share in other
+comprehensive income
+(OCI)
+2015-16
+FOR THE YEAR ENDED MARCH 31, 2017
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 269
+(0.1)
+(0.0)
+(0.1)
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+11.3
+0.0
+11.3
+3.2
+0.0
+3.2
+38
+Ranbaxy Farmaceutica Ltda.
+(0.3)
+(1,036.7)
+(0.9)
+(416.8)
+(0.7)
+(416.8)
+39
+Ranbaxy Pharmaceuticals Canada Inc.
+0.1
+414.4
+0.2
+79.4
+(6.6)
+(0.0)
+Rexcel Egypt LLC
+41
+(161.1)
+(0.3)
+0.0
+(161.1)
+8.8
+0.0
+Ranbaxy Egypt LLC
+40
+79.4
+0.1
+(0.4)
+Ranbaxy Belgium N.V.
+37
+Australia Pty Ltd)
+(3.1)
+(0.0)
+226,846.2
+61.2
+Sun Pharma Holdings
+34
+(0.0)
+(0.5)
+(0.5)
+(0.0)
+5.4
+0.0
+Sun Pharma Switzerland Limited
+33
+(0.0)
+8.6
+(3.1)
+Sun Pharma East Africa Limited
+33.6
+0.1
+33.6
+0.1
+(892.8)
+(0.2)
+35
+Sun Pharma ANZ Pty Ltd (Formerly known as Ranbaxy
+(40.8)
+(0.1)
+(40.8)
+(0.1)
+(42.4)
+(0.0)
+36
+100.00%
+36,837.3
+12,313.2
+976.9
+1,396.4
+79.2
+79.2
+71.22%
+970.5
+2,051.8
+1,239.1
+57.2
+57.2
+100.00%
+0.8
+1,312.4
+863.2
+148.1
+1,042.4
+0.1
+1,472.5
+(1.0)
+(1.0)
+(0.0)
+100.00%
+1,679.2
+34.2
+34.2
+100.00%
+24.03.2015 CAD 48.57
+24.03.2015 RON 15.23
+24.03.2015 ZAR 4.84
+24.03.2015 USD 64.86
+02.11.2015 USD 64.86
+24.03.2015 INR
+109.3
+147.2
+(1,293.3)
+381.1
+0.0
+37,932.6
+0.0
+218.2
+(1,439.0)
+117.2
+Reporting
+Currency
+Rate
+Capital
+Reserve
+Total
+Assets
+Total
+Liabilities
+Other than
+Investment
+Turnover
+Profit
+/ (Loss)
+before
+Provision
+was
+for
+Taxation
+357.6
+Profit
+after Dividend Shareholding
+% of
+in Subsidiary
+Taxation
+Taxation
+8582 822222 222 28
+Ranbaxy (Malaysia) Sdn. Bhd.
+Ranbaxy Farmaceutica Ltda.
+Ranbaxy Europe Limited
+Sun Pharma ANZ Pty Ltd (Formerly known as
+Ranbaxy Australia Pty Ltd)
+Ranbaxy Pharmaceuticals Canada Inc.
+S. C. Terapia S.A.
+Be- Tabs Investments Proprietary Limited
+Ranbaxy (Netherlands) B.V.
+Insite Vision Incorporated
+Sun Pharma Medisales Private Limited (Formerly
+known as Solrex Pharmaceuticals Company)
+JSC Biosintez
+acquired
+24.03.2015 MYR 14.65
+24.03.2015 BRL 20.59
+24.03.2015 GBP 80.83
+24.03.2015 AUD 49.61
+/ (Loss) Proposed
+No
+1.00
+223.4
+10,643.9
+17.3
+15,137.4
+617.6
+83.6
+857.6
+4407.4
+3549.5
+3319.5
+(7.2)
+26.7
+(33.9)
+85.10%
+64.86
+1.00
+20673.7
+0.0
+20673.7
+0.3
+0.0
+-
+0.0
+100.00%
+0.1
+(1.2)
+0.5
+1.7
+0.0
+(1.2)
+0.0
+(1.2)
+100.00%
+0.0
+1.0
+1.16
+Sun Pharmaceuticals Holdings USA, INC
+Foundation for Disease Elimination and Control
+of India
+950.0
+13,699.6
+17.3
+53,146.0
+2,212.1 1,594.6
+2,247.3 2,162.7
+617.3
+2,674.6
+1,857.5 (60.9)
+(60.9)
+100.00%
+9,040.1 2,420.1
+343.7
+2,076.4
+96.70%
+0.0
+0.1
+-
+19.12.2016 RUB
+18.11.2016 USD
+21.09.2016 INR
+0.1
+76.0
+0.0 1,227.6
+(1.3) 1,228.9
+100.00%
+3.2 (86.2)
+(70.4) (15.8)
+100.00%
+699.2
+112.5
+29.6
+82.9
+100.00%
+100.00%
+subsidiary
+Name of the Subsidiary Company
+Sr
+10.06.2013
+64.81
+06.08.2015
+64.86
+15.07.2014
+64.86
+15.07.2014
+64.86
+13.06.2014
+24.03.2015
+0.63
+1.00
+24.03.2015
+1.00
+1.00
+1.00
+24.03.2015
+69.30
+24.03.2015
+69.30
+24.03.2015
+2.40
+24.03.2015
+6.47
+Sun Pharmaceutical Industries S.A.C. (Formerly 24.03.2015
+known as Ranbaxy - PRP (Peru) S.A.C.)
+Ranbaxy Holdings (U.K.) Limited
+Ranbaxy Pharmacie Generiques
+24.03.2015
+24.03.2015
+24.03.2015
+31.08.2012
+01.04.2012
+Gufic Pharma Limited
+Basics GmbH
+Ranbaxy GmbH
+225322222263333333-33333333-220332222222222222222
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+Sun Pharmaceuticals Morocco LLC (Formerly
+known as Ranbaxy Morocco LLC)
+was
+acquired
+20.09.2010
+USD
+64.86
+20.09.2010
+48.57
+1.00
+22.11.2012
+19.12.2012
+64.86
+05.02.2013
+64.86
+01.04.2012
+1.00
+01.04.2012
+1.00
+01.04.2012
+1.00
+01.04.2012
+1.00
+7.26
+Office Pharmaceutique Industriel Et Hospitalier 24.03.2015
+Ranbaxy Italia S.P.A.
+RØBB¥¥¥¥ÐBROMMM8RM? X @???** * 8 8 8 3 3 7 8 8 8 8 8 8
+19.96
+24.03.2015
+64.86
+24.03.2015
+64.86
+24.03.2015
+24.03.2015
+24.03.2015
+69.30
+1.16
+EURO 69.30
+Ranbaxy Egypt LLC
+Rexcel Egypt LLC
+Ranbaxy (U.K.) Limited
+Ranbaxy (Poland) Sp. Z o.o.
+Ranbaxy Nigeria Limited
+Ranbaxy (Thailand) Company Limited
+Ohm Laboratories, Inc.
+Ranbaxy Laboratories, Inc.
+Ranbaxy Signature LLC
+Ranbaxy Pharmaceuticals, Inc.
+64.86
+Ranbaxy Inc.
+Ranbaxy Ireland Limited
+Laboratorios Ranbaxy, S.L.U.
+Part "A": Subsidiaries
+*In Million
+CORPORATE OVERVIEW
+01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS
+NOTES TO THE CONSOLIDATED
+Date since
+when
+Investment
+AO Ranbaxy (Formerly Known ZAO Ranbaxy)
+24.03.2015
+64.86
+24.03.2015
+80.83
+69.30
+69.30
+24.03.2015
+69.30
+Ranbaxy Pharmaceutical Proprietary Limited
+24.03.2015
+4.84
+Sonke Pharmaceuticals Proprietary Limited
+Ranbaxy South Africa Proprietary Limited
+24.03.2015
+4.84
+24.03.2015
+4.84
+24.03.2015
+3.55
+24.03.2015
+0.1
+24.03.2015
+80.83
+24.03.2015
+16.45
+24.03.2015
+0.21
+24.03.2015
+1.89
+24.03.2015
+64.86
+Ocular Technologies SARL
+Investments Limited
+100 Sun Pharmaceutical Medicare Limited
+64.86
+1.00
+i. Considered in
+(9.7)
+(191.3)
+NA
+(12.8)
+(28.8)
+(48.8)
+0.0
+0.0
+(166.2)
+Consolidation
+ii. Not Considered in
+Profit/Loss for the year
+(11.8)
+NA
+(174.8)
+(343.0)
+(285.8)
+0.0
+0.0
+(665.2)
+Consolidation
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+UDAY V. BALDOTA
+Chief Financial Officer
+DILIP S. SHANGHVI
+Managing Director
+SUNIL R. AJMERA
+Company Secretary
+(191.3)
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 26, 2017
+6
+Shareholding as per latest
+ΝΑ
+significant influence
+4
+Reason why the associate/
+NA
+NA
+NA
+NA
+NA
+NA
+NA
+ΝΑ
+audited Balance Sheet
+NA
+joint venture is not
+consolidated
+5
+Networth attributable to
+47.8
+184.0
+1595.3
+888.2
+(396.0)
+0.1
+0.4
+(443.7)
+NA
+NA
+278 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+0.0
+5.9
+0.0
+5.9
+22222
+21
+Sun Pharmaceuticals France
+(0.0)
+(15.0)
+0.0
+1.6
+0.0
+1.6
+0.0
+Sun Pharma Global FZE (Consolidated with a Joint venture)
+52.7
+23,968.2@
+(22.0)
+(2,820.8)
+36.3 21,147.4@
+23
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+(0.0)
+(0.1)
+(0.0)
+(0.0)
+(0.0)
+31.1 115,361.9
+SUDHIR V. VALIA
+Wholetime Director
+(204.7)
+Sun Pharmaceuticals Germany GmbH
+8.6
+17
+Sun Pharmaceutical Industries (Europe) B.V.
+(0.0)
+(148.8)
+0.0
+15.9
+0.0
+15.9
+18
+Sun Pharmaceuticals Italia S.R.L.
+(0.1)
+(0.1)
+(379.6)
+(40.8)
+(0.1)
+(40.8)
+19
+Sun Pharmaceuticals Spain, S.L.U.
+(0.1)
+(370.7)
+(0.2)
+(80.3)
+(0.1)
+(80.3)
+20
+(0.1)
+19.99%
+40.61%
+28.76%
+ΝΑ
+6
+7
+With effect from August 16, 2016 Dusa Pharmaceuticals New York, Inc. has been dissolved.
+8
+With effect from February 22, 2017 Sirius Laboratories Inc has been dissolved.
+9
+With effect from March 16, 2017, Thallion Pharmaceutical Inc., was acquired and merged with Taro Pharmaceuticals Inc.,
+10
+With effect from April 7, 2016 Perryton Wind Power LLC has been liquidated.
+11
+During the year, Solrex Pharmaceuticals Company, a partnership firm has been converted into company which is known as Sun Pharma Medisales Private Limited
+12 MSD Sun LLC is under liquidation.
+13
+5
+14
+MSD-Sun FZ LLC has been deregistered with effect from September 14, 2015 having deregistration certificate dated December 25, 2016.
+15 With effect from April 01, 2015, URL Pharma Inc., has merged into Mutual Pharmaceutical Company, Inc.
+16
+With effect from April 01, 2015, AR Scientific Inc. have merged into URL Pharma Inc.
+17
+With effect from April 01, 2015, United Research Laboratories Limited, have merged into URL Pharma Inc.
+19
+With effect from March 01, 2016, Ranbaxy Belgium N.V. has been liquidated.
+18 During the previous year, the Company has sold its investment in Silverstreet Developers LLP with effect from April 01, 2015.
+20 With effect from June 30, 2015 Ranbaxy Portugal - Com E Desenvolv DeProd Farmaceuticos Unipessoal Lda has been liquidated.
+21
+22
+Daiichi Sankyo (Thailand) Ltd.'s shares were sold as per agreement dated May 13, 2016.
+Zalicus Pharmaceuticals Limited was acquired during the previous year and subsequently amalgamated in Taro Pharmaceuticals Inc., on October 05, 2015.
+With effect from November 02, 2015, Thea Acquisition Corporation has been merged with Insite Vision Incorporated.
+4
+With effect from February 16, 2017, Taro Hungary Intellectual Property Licensing Limited Liability Company has been liquidated.
+1.4
+(1.4)
+0.0
+0.0
+0.0
+0.0
+0.0
+0.0
+100.00%
+2.5
+(13.5)
+1934.5
+Taro Pharmaceutical India Private Limited is under liquidation.
+1945.5
+(13.5)
+0.0
+(13.5)
+100.00%
+Note:
+1
+0.0' represents amount less than 0.05 million and rounded off
+2
+3
+In respect of entities at Sr. Nos. 4 to 8, 62, 84, 94, 96, and 99 the reporting date is as of December 31, 2016 and different from the reporting date of the Parent Company. Adjustments have been made
+for significant transactions of these subsidiaries for the periods from January 01, 2016 to March 31, 2016 and January 01, 2017 to March 31, 2017, on the basis of their management accounts for the said
+periods.
+The above does not include 3 Skyline LLC, One Commerce Drive LLC, Sirius Laboratories Inc, Perryton Wind Power LLC, Insite Vision Ltd., Dusa Pharmaceuticals New York Inc., Taro Pharmaceutical
+Laboratories Inc, Taro Pharmaceutical India Private Limited being subsidiaries of Taro Pharmaceutical Industries Ltd, Caraco Pharma Inc. 2 Independence Way LLC, URL Pharma Pro LLC and Dungan Mutual
+Associates LLC as they have no operation and does not have any Assets, Liabilities or Equity as on the close of their Financial Year.
+With effect from March 2, 2017, Sun Pharmaceutical Spain, S.L.U. has been liquidated.
+0.0
+ANNUAL REPORT 2016-17
+277
+SUN
+NA
+0.7
+NA 16,128,078
+184.0
+NA
+1,437.0
+ΝΑ
+951.5
+13,000,000
+794.4
+28,760
+0.0
+NA
+312.5
+1,999
+1,110.3
+Associates/Joint Venture
+Extend of Holding %
+45.00%
+50.00%
+244.9
+50.00%
+6.83%
+7.75%
+14.58%
+3
+Description of how there is
+NA
+NA
+NA
+NA
+NA
+NA
+NA
+46.84%
+Amount of Investment in
+15,853
+company on the year end
+No.
+PHARMA
+NOTES TO THE CONSOLIDATED
+FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2017
+Part "B": Associate Companies and Joint Ventures
+In Million
+Jointly Controlled Entity
+Associates
+Sr. Name of Associates/Joint
+No Ventures
+Artes
+Biotechnology
+GmbH
+MSD - Sun
+LLC
+LLC
+S&I Zenotech Fraizer
+Ophthalmic Laboratories Healthcare
+Limited VII, L.P.
+Versant
+Venture scPharmaceuticals
+Capital V,
+L.P.
+Trumpcard
+Inc.
+Generic
+Solar Power
+LLP
+Advisors
+and Finvest
+LLP
+Medinstill
+LLC
+1 Latest audited Balance
+Sheet Date
+31-Dec-16 31-Mar-17 31-Mar-17 31-Mar-17 31-Dec-16 31-Dec-16
+31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17
+Date of acquisition
+29.12.2016 09.10.2015 31.03.2017 13.03.2014
+2
+Shares of Associate/Joint
+Ventures held by the
+15.12.2016 USD
+16.01.2017 INR
+Vidyut
+3.55
+Pharmalucence, Inc.
+546.3
+64.86
+227.8
+69.30
+69.30
+1.2
+138.7
+(0.1)
+117,022.4
+72,094.5
+(32.7)
+21,050.8
+(32.8)
+(400.5)
+0.1
+0.1
+136,767.8 2,680.4
+74,402.1 2,293.2
+45,506.7 44,993.1
+21,857.7
+Pl Real Estate Ventures LLC
+Sun Pharma East Africa Limited
+Ranbaxy Drugs Limited
+14,605.4 7,949.7
+-
+64.86
+23,526.9 17,672.3
+72.81%
+72.81%
+230.1
+579.1
+50,459.3 673.4
+5,098.6 2,709.3
+30.9 642.5
+72.81%
+2,709.3
+72.81%
+1.5
+33.1
+(1.3)
+1,213.0 6,736.6
+4,279.1 13,393.2
+(1.3)
+14.3
+64.86 17,065.0
+100.00%
+0.06
+5.8
+(1.6)
+1.00
+0.1
+(0.1)
+1.00
+0.5
+197,557.3
+5.9
+0.0
+219,999.1
+1.6
+48.57
+(0.3)
+100.00%
+0.0
+0.1
+22,441.3
+2,642.8 52,873.9 9,691.0
+0.0
+2,106.7
+0.0
+7,584.3
+100.00%
+2040.0
+100.00%
+64.86
+0.2
+(0.3)
+2.4
+72.81%
+334.9
+Taxation
+Investment
+Other than
+Investment
+in Subsidiary
+Date since
+when
+subsidiary
+Reporting
+Currency
+Rate
+Capital
+Reserve
+Total
+Assets
+Total
+Liabilities
+Taxation
+for
+Profit
+/ (Loss) Proposed
+% of
+after Dividend Shareholding
+Taxation
+PHARMA
+SUN
+NOTES TO THE
+CONSOLIDATED
+FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS
+0.0
+(1.4)
+*In Million
+73.1
+/ (Loss)
+before
+Provision
+(19.4)
+(19.4)
+72.81%
+64.86
+20.09.2010
+GBP 80.83
+0.0
+85.3
+(741.0)
+550.8
+465.6
+757.5
+73.4
+Turnover
+17.8
+72.81%
+79.4
+820.4
+81.1 (128.9)
+(128.9)
+72.81%
+ANNUAL REPORT 2016-17
+275
+276
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Part "A": Subsidiaries
+Profit
+55.6
+-
+100.00%
+(54.2)
+0.7
+174.7
+(1.4)
+(1.4)
+100.00%
+69.30
+0.2
+(346.6)
+1.0
+347.4
+(4.8)
+(4.8)
+100.00%
+100.00%
+1.7
+(187.7)
+760.5
+946.5
+462.0
+10.6
+8.1
+2.5
+100.00%
+69.30
+2.6
+64.86
+69.30
+267.5
+26.5
+466.0
+1,561.8 (1,311.6)
+(1,311.6)
+99.99%
+0.3
+8,898.9
+91.8
+6,923.1
+46.2
+(0.8)
+(0.8)
+100.00%
+5,176.3
+(359.7)
+(359.7)
+26.5
+100.00%
+1.2
+(111.7)
+0.7
+39.8
+47.0
+425.9
+41.2
+41.0
+184.7
+8.1
+2.2
+5.9
+100.00%
+536.4
+69.30
+69.30
+(19.7)
+123,233.1
+165.5
+132,393.3
+182.6
+440.9
+0.7
+81.4
+(0.0)
+(110.3)
+10,623.1
+(0.0)
+(0.0)
+100.00%
+100.00%
+100.00%
+(110.3)
+100.00%
+19.5
+4,031.0
+656.2
+(0.7)
+96.2
+200.8
+3,588.4
+259.9
+(0.7)
+10.6
+235.8
+(107.9)
+0.2
+(108.1)
+100.00%
+64.86
+185.4
+(4.4)
+181.1
+0.0
+(77.4)
+2.4
+(23.2)
+100.00%
+(407.5)
+11.2
+1.29
+109.1
+(3.3)
+(3.3)
+100.00%
+8,892.6
+2,888.9
+35,588.7 10,623.1
+4.84
+0.0
+(0.1)
+0.1
+-
+0.0
+(0.0)
+64.86
+0.1
+(1.2)
+1.1
+64.86
+794.6
+(1,139.3)
+64.86
+185.4
+(4.1)
+0.58
+91.5
+(534.1)
+(1.4)
+72.81%
+100.00%
+0.1
+6,566.0
+195.5
+195.5
+70.00%
+1,981.9
+1,306.5
+1,291.2
+170.6
+147.8
+100.00%
+480.6
+11.4
+213.4
+2,420.3
+237.2
+7.9
+29
+(63.8)
+(66.9)
+100.00%
+(7.8)
+(7.8)
+100.00%
+2,036.8
+872.2
+1,558.7
+74.2
+22.3
+58.1
+2,670.8
+189.3
+2,589.9
+8.3
+(0.9)
+(0.9)
+100.00%
+659.9
+2,318.3
+1,334.1
+163.4
+163.4
+100.00%
+216.5
+100.00%
+137.9
+13.6
+13.6
+100.00%
+1,314.3
+1,291.9
+1,365.2 (22.3)
+(35.5)
+100.00%
+6,750.3
+7,865.5
+5,395.9
+189.3
+273.0
+100.00%
+192.9
+36.0
+67.50%
+2,958.4
+1,862.9
+100.00%
+142.0
+(97.7)
+100.00%
+1,181.7
+138.2
+138.2
+100.00%
+985.6
+100.00%
+1,426.2
+245.3
+100.00%
+98.7
+100.00%
+Name of the Subsidiary Company
+Taro Hungary Intellectual Property Licensing
+Limited Liability Company
+Taro Pharmaceuticals Canada, Ltd.
+Alkaloida Sweden AB
+Dusa Pharmaceuticals, Inc.
+Mutual Pharmaceutical Company Inc.
+Faststone Mercantile Company Private Limited
+Neetnav Real Estate Private Limited
+Realstone Multitrade Private Limited
+Skisen Labs Private Limited
+Softdeal Trading Company Private Limited
+Universal Enterprises Private Limited
+Sun
+Pharma Switzerland Limited
+Sun Pharma Holdings
+5,781.8 345.2
+98.7
+4,259.8
+472.3
+100.00%
+(684.7) (1,311.1)
+458.2
+14.3
+10.7
+100.00%
+2,556.2
+984.6
+1,891.4
+823.8
+866.3 (79.3)
+(40.0)
+2.1
+85.31%
+82,403.8
+92,020.4
+3.3
+79,331.4
+77,913.2
+181,560.9 173,094.5
+57,684.1
+0.1
+4,194.9
+1,239.7
+42,440.4
+28.2
+3,222.3
+191.4
+998.4 (86.4)
+25,336.6 (1,995.8)
+14,485.5 6,614.1
+504.1
+472.3
+29,422.6
+(86.4)
+-
+100.00%
+100.00%
+(22.0)
+532.9
+15.0
+0.0
+0.0
+2,666.9
+2,645.1
+(17,972.1) 204,615.1
+728.5
+6,571.7 1.590.4
+1,843.5 1,134.3
+1,839.2 (350.9)
+202.3 120.8
+(26.1)
+(9.4)
+415.8
+1,893.1
+5.3
+466.8
+0.8
+39.0
+27.7
+0.3
+1.6
+4.5
+0.0
+4,392.1
+3,780.0
+0.2
+2,605.6
+0.3
+62.5
+377.8 (23.8)
+0.6
+0.0
+0.0
+(22.0)
+(0.0)
+298.7
+11,577.9
+9,610.3
+278.8
+6,513.5
+748.3
+9.6
+8,916.9 4,219.8
+428.3
+11.1
+0.0
+3,104.9 (916.6)
+0.0
+0.5
+3,077.5
+157.3
+3.1
+1.2
+1.2
+11.2
+0.0
+0.0
+0.6
+0.1
+0.0
+0.0 (0.0)
+10.6
+277.8
+276.0
+215.9
+☐ 38333333333333331
+100.00%
+1.1
+100.00%
+0.2
+100.00%
+48.8
+100.00%
+100.00%
+235.7
+133.4
+9.0
+7.1
+38.9
+100.00%
+987.3
+884.6
+81.8
+77.4
+100.00%
+༄ ཕམཞག །གི། ། ཡཛིཉྩ
+རྨབྷམཎཿདྷབྷབྷཎྜ ཝཱ
+བྷིཛྫིཋཀཝཾབྷཝཎྜཝེ ཟེའི
+དྷབྷཱཀརཎྞཱནྟིཝིཝ།མུནཙྪནྟིཝེམྤིངྒཔནི
+196.2
+191.0
+290.1
+926.9
+100.00%
+639.9
+100.00%
+(0.0)
+72.81%
+(17.0)
+9.6
+100.00%
+2,599.9
+100.00%
+(583.9)
+100.00%
+0.3
+0.8
+100.00%
+0.4
+100.00%
+100.00%
+100.00%
+76.9
+100.00%
+(0.0)
+100.00%
+(9.4)
+100.00%
+(223.7)
+100.00%
+0.0
+100.00%
+0.4
+(26.9)
+27. Sun Pharma de Mexico S.A.
+El Sifon, Iztapalapa, Mexico.
+28. Ranbaxy Nigeria Limited
+Lagos, Nigeria.
+Billerica, Massachusetts, USA.
+35. Ohm Laboratories, Inc.
+34. Pharmalucence Inc.
+33. Sun Pharmaceutical Industries Inc.
+Cranbury, New Jersey, USA.
+Wilmington, Massachusetts, USA.
+Brunswick, New Jersey, USA.
+36. Sun Pharmaceutical Industries
+(Australia) Pty Ltd, Latrobe, Australia
+37. Sun Pharmaceutical Industries
+(Australia) Pty Ltd, Port Fairy, Australia
+38. JSC Biosintez, Penza, Russia
+32. Dusa Pharmaceuticals Inc.
+31. Chattem Chemicals, Inc.
+Chattanooga, USA.
+South Africa.
+29. S.C Terapia S. A. Cluj, Romania.
+30. Ranbaxy Pharmaceuticals (Pty) Ltd.
+Roodepoort, Johannesburg,
+26. Ranbaxy Malaysia Sdn. Bhd.
+Kuala Lumpur, Malaysia.
+12. Paonta Sahib, Himachal Pradesh, India.
+13. Baddi, Himachal Pradesh, India.
+14. Dewas, Madhya Pradesh, India.
+15. Malanpur, Madhya Pradesh, India.
+16. Toansa, Punjab, India.
+24. Alkaloida Chemical Company Zrt
+Tiszavasvari, Kabay, Hungary.
+October City, Giza, Egypt.
+23. Ranbaxy Egypt (L.L.C.)
+Brampton, Ontario, Canada.
+22. Taro Pharmaceuticals Inc.
+Joydevpur, Gazipur, Bangladesh.
+21. Sun Pharmaceutical (Bangladesh) Ltd.
+20. Sun Pharma Laboratories Ltd.
+Guwahati, Assam, India
+19. Sun Pharma Laboratories Ltd.
+Setipool, Sikkim, India.
+Jammu, Jammu & Kashmir, India.
+18. Sun Pharma Laboratories Ltd.
+Ranipool, Sikkim, India.
+17. Sun Pharma Laboratories Ltd.
+Offices
+25. Taro Pharmaceutical Industries Ltd.
+Haifa Bay, Israel.
+Registered Office
+alc (info@aicl.in)
+Vadodara 390 020, Gujarat.
+11. Ponda, Goa, India.
+concept, content and design at
+www.sunpharma.com
+CIN: L24230GJ1993PLC019050
+Fax: (+9122) 4324 4343
+Tel: (+9122) 4324 4324
+Goregaon (E), Mumbai 400063,
+Maharashtra, India.
+Western Express Highway,
+CTS No. 201 B/1,
+SUN HOUSE
+PHARMA
+SUN
+Sun Pharma Advanced Research Centre
+(SPARC), Tandalja,
+280 SUN PHARMACEUTICAL INDUSTRIES LIMITED
+130 East Drive, Brampton,
+Ontario L6T 1C1, Canada.
+5. Taro Pharmaceuticals Inc.,
+14 Hakitor Street, P.O. Box 10347 Haifa
+Bay 2624761, Israel.
+4. Chemistry and Discovery Research
+Israel,
+Gurgaon-122015 (Haryana).
+3. Village Sarhaul, Sector-18,
+Mumbai - 400 093, Maharashtra.
+2. 17-B, Mahal Industrial Estate, Mahakali
+Caves Road, Andheri (East),
+C.S. No. 1050, TPS No. 24, Village
+Tandalja, District, Vadodara - 390 020,
+Gujarat.
+Major Research Centres
+1. F.P.27, Part Survey No. 27,
+SUN HOUSE, CTS No. 201 B/1,
+Western Express Highway,
+Goregaon (E), Mumbai 400063,
+Maharashtra.
+Corporate Office
+6. Ohm Laboratories Inc., Terminal Road,
+New Brunswick, New Jersey 08901
+USA
+10. Mohali, Punjab, India.
+Tel: (022)-49186000
+Maduranthakamm, Tamil Nadu, India.
+Sailesh T. Desai
+9.
+8.
+7.
+Whole-time Director
+Sudhir V. Valia
+5.
+Managing Director
+Panoli, Gujarat, India.
+4.
+Dilip S. Shanghvi
+Halol, Gujarat, India.
+3.
+2.
+Chairman
+Ankleshwar, Gujarat, India.
+1. Silvassa, Dadra & Nagar Haveli, India.
+Dadra, Dadra & Nagar Haveli, India.
+Operational Manufacturing Plants
+Board of Directors
+Israel Makov
+CORPORATE INFORMATION
+Dahej, Gujarat, India.
+SUN
+279
+ANNUAL REPORT 2016-17
+NOTES
+Whole-time Director
+Mr. Kalyanasundaram Subramanian
+Whole-time Director (w.e.f. February 14, 2017)
+PHARMA
+Hasmukh S. Shah
+S. Mohanchand Dadha
+Director
+Ahmednagar, Maharashtra, India.
+Karkhadi, Gujarat, India.
+E-mail: rnt.helpdesk@linkintime.co.in
+Fax: (022)-49186060
+Mumbai - 400 083
+LBS Marg, Vikhroli (West),
+C 101, 247 Park,
+Link Intime India Pvt. Ltd.
+Registrars & Share Transfer Agents
+Chartered Accountants, Mumbai
+Deloitte Haskins & Sells
+Auditors
+6.
+Sunil R. Ajmera
+email: secretarial@sunpharma.com
+Director
+Director
+Ashwin Dani
+Director
+Keki M. Mistry
+Director
+Chief Financial Officer
+Uday V. Baldota (upto June 19, 2017)
+C. S. Muralidharan (w.e.f. June 19, 2017)
+Company Secretary
+Rekha Sethi
+▸ In November 2016, Sun Pharma enhanced its presence in Russia
+through the acquisition of 85.1% of JSC Biosintez, a Russian
+pharmaceutical company engaged in manufacture and marketing
+of pharmaceutical products in Russia and CIS region for US$ 24
+Million. Sun Pharma also assumed a debt of approximately US$ 36
+Million as part of this transaction. Biosintez focuses on the hospital
+segment and had an annual revenue of approximately US$ 52
+Million for 2015. It has a manufacturing facility in Penza region with
+capabilities to manufacture a wide variety of dosage forms, including
+pharmaceuticals for injections, blood substitutes, blood preservatives,
+ampoules, tablets, ointment, creams, gels, suppositories and APIs.
+This acquisition is consistent with Sun Pharma's philosophy to invest
+in strategic emerging markets. It provides the Company access to
+local manufacturing capability across multiple dosage forms in Russia,
+enabling it to serve the Russian pharmaceutical market effectively.
+Enhancing presence in Russia
+Japan entry
+▸ Towards the end of FY16, Sun Pharma had taken an important
+step towards establishing its presence in Japan through the
+acquisition of 14 established prescription brands from Novartis AG
+and Novartis Pharma AG for a consideration of US$ 293 Million. In
+FY17, Sun Pharma initiated the process of transferring the marketing
+authorisations of these brands from Novartis to itself. The transfer
+of these brands has commenced in a phased manner beginning
+October 2016 onwards. Simultaneously, Sun Pharma entered into
+a distribution alliance with Mitsubishi Tanabe Pharma Corporation
+(MTPC) for these brands. Under this alliance, following the transfer
+of manufacturing and marketing rights to Sun Pharma, MTPC will
+market and distribute all 14 brands as well as provide information on
+their proper use to healthcare professionals in Japan. Through this
+alliance, Sun Pharma can leverage MTPC's specialised expertise to
+create a strong business foundation in Japan.
+API Plant
+PHARMA
+SUN
+19
+ANNUAL REPORT 2016-17
+▶In March 2017, the USFDA informed Sun Pharma that it will be
+lifting the Import Alert imposed on Sun Pharma's Mohali (Punjab)
+manufacturing facility and remove the facility from the Official
+Action Initiated (OAI) status. This action has cleared the path for
+Sun Pharma to supply approved products from the Mohali facility to
+the US market, subject to normal USFDA regulatory requirements,
+as well as make this facility available for future filings. The Mohali
+facility was inherited by Sun Pharma as part of its acquisition of
+Ranbaxy Laboratories Ltd. in 2015. The USFDA had acted against
+the Mohali facility in 2013, when it ordered the facility to be fully
+subjected to Ranbaxy's Consent Decree of permanent injunction.
+Certain conditions of the Consent Decree will continue to be
+applicable to the Mohali facility. This development illustrates Sun
+Pharma's commitment to work closely with the USFDA and strive for
+100% cGMP compliance at its manufacturing facilities.
+Sun Pharma an opportunity to meaningfully expand its already
+established branded dermatology business and support its expansion
+into branded oncology with a launched brand. This acquisition has
+the potential to leverage and expand the relationships that the
+Dusa sales team has with dermatologists that treat common pre-
+cancerous skin conditions.
+During the year, Sun Pharma made significant progress towards 24x7
+CGMP compliance. Many of its facilities underwent successful audits
+by multiple regulatory agencies, including the USFDA. At the same
+time, remediation work continued at some of the facilities, which
+have been impacted by cGMP deviations. Key highlights were:
+Progress on cGMP compliance
+► In December 2016, Sun Pharma entered into an exclusive
+worldwide licensing deal to further develop MM-II, a novel
+pharmaceutical candidate for the treatment of pain in osteoarthritis.
+MM-II is a novel non-opioid product that leverages the physical
+properties of proprietary liposomes to lubricate arthritic knee joints,
+thereby reducing friction and wear, consequently leading to joint
+pain reduction. MM-II is an intra-articular bio-lubricant injection,
+which is being developed to provide symptomatic relief of mild-
+to-moderate osteoarthritis pain. The product is based on patent-
+protected technology licensed by Moebius Medical from the Hebrew
+University of Jerusalem, Technion Israel Institute of Technology and
+Hadassah Medical Centre.
+Buyback of shares
+In December 2016, Sun Pharma announced the acquisition of a
+branded oncology product, OdomzoⓇ, from Novartis, for an upfront
+payment of US$ 175 Million and additional milestone payments.
+OdomzoⓇ (Sonidegib) was approved by the USFDA in July 2015.
+It is a hedgehog pathway inhibitor indicated for the treatment of
+adult patients with locally advanced basal cell carcinoma (laBCC)
+that has recurred following surgery or radiation therapy, or those
+who are not candidates for surgery or radiation therapy. For this
+class of drug, a significant number of prescribers are dermatologists
+and rests are oncologists. Clinical data from the BOLT trial for
+OdomzoⓇ had shown continued anti-tumor activity for more
+than 26 months in patients treated with OdomzoⓇ with no new
+safety concerns. At the 30-month follow-up, patients with locally
+advanced BCC had an overall response rate (ORR) as per central
+review of 56% with OdomzoⓇ 200 mg. The most frequent grade
+3 and 4 adverse reactions occurring in more than 2% of patients
+were fatigue, decreased weight and muscle spasms. OdomzoⓇ gives
+Subsequently, in January 2017, Sun Pharma announced successful
+Phase-3 confirmatory clinical trial results for Seciera™M. In this 12
+week, multicentre, randomised, double-masked, vehicle controlled
+Phase-3 confirmatory study, 744 dry eye patients were treated,
+either with Seciera™ or its vehicle. After 12 weeks of treatment,
+as compared to vehicle, Seciera™ showed statistically significant
+improvement in the primary end point, Schirmer's score (a
+measurement of tear production) (p<0.0001). The demonstration of
+efficacy by Seciera™ at 12 weeks is earlier than other drugs approved
+for dry eye in the same class. Additionally, several key secondary
+endpoints showed statistically significant improvements compared
+to vehicle with some showing an even earlier onset of action. Adverse
+events reported in the trial were mild to moderate in nature and
+similar to other approved drugs in the category. Subsequently, Sun
+Pharma had a pre-NDA meeting with the USFDA and the filing of this
+NDA is targeted for Q3FY18.
+▸ In October 2016, Sun Pharma announced the acquisition of Ocular
+Technologies (Ocular), a portfolio company of Auven Therapeutics
+(Auven). Ocular owns exclusive, worldwide rights to Seciera™
+(cyclosporine A, 0.09% ophthalmic solution). Sun Pharma paid Auven
+US$ 40 Million upfront, plus Auven will be eligible for contingent
+development milestones and sales milestones, as well as tiered
+royalty on sales of Seciera™ as consideration for this acquisition.
+At the time of the acquisition, Seciera™ was undergoing a Phase-3
+confirmatory clinical trial for the treatment of Dry Eye Disease.
+The Dry Eye Disease is an inflammatory ocular disease affecting
+approximately 16 million people in the United States alone. Seciera™
+is a patented, novel, proprietary formulation of cyclosporine A
+0.09%. It is a clear, preservative-free, aqueous solution. Coupled with
+Sun Pharma's existing ophthalmic portfolio consisting of BromSite™,
+DexaSite™ and Xelpros™, this acquisition will enable Sun Pharma to
+significantly expand its ophthalmic presence and reach to millions of
+patients - globally.
+FINANCIAL STATEMENTS 80-278
+08-79
+► In November 2016, Sun Pharma's Halol facility underwent a
+re-inspection by the USFDA as a follow-up to the warning letter
+issued to the facility in December 2015. The USFDA pointed out
+nine deviations post the re-inspection, none of which were repeat
+deviation from the previous time. The Company has filed its response
+to these deviations within the stipulated timelines and is in the
+process of implementing remediation measures to address these
+deviations. Sun Pharma is unlikely to receive any new approvals from
+the Halol facility till it is re-certified by the USFDA.
+▶In June 2016, Sun Pharma's Board of Directors approved the
+buyback of 7.5 Million equity shares at a price of 900 per share. The
+buyback was undertaken by the Company to return surplus funds to
+the equity shareholders and thereby, enhancing the overall returns
+to shareholders. This buyback was completed in October 2016,
+resulting in return of ₹ 6.75 Billion to shareholders, including the
+promoters of the Company.
+Ensuring 24x7 cGMP compliance is a top priority for Sun Pharma
+and gets substantial attention from the top management. Over the
+past two years, significant investments have been made in enhancing
+systems, processes and talent to meet the stringent requirements
+of global regulators, including the USFDA. As a part of this process
+and to address the issues raised in the December 2015 warning
+Sun Pharma has embarked on various initiatives, globally, to drive
+sustainable growth and profitability, and to enhance long-term
+shareholder value.
+may not have commensurate revenues in FY18. The consolidated
+R&D investments for FY18 will be about 9-10% of revenues. The
+Company expects a gradually increasing tax rate over the next few
+years while capex for FY18 is estimated at US$ 350 Million.
+Despite these challenges, Sun Pharma continues to invest in
+enhancing its global specialty and complex generics pipeline.
+Investments will also continue for setting up the requisite front-end
+capabilities for the specialty business in the US. These investments
+FY18 is likely to be a challenging year for Sun Pharma. The US generics
+industry is facing rapidly changing market dynamics. Increased
+competitive intensity and customer consolidation is leading to
+pressure on pricing. Continued delay in approvals from the Halol
+facility is also impacting Sun Pharma. Also, the Company had the
+benefit of Imatinib exclusivity in US in FY17 which has ended in July
+2016. In the Indian market also, there is uncertainty amongst the trade
+channels due to GST implementation, although it may be temporary.
+Given these factors, growth could be a challenge in FY18 and the
+Company expects a single-digit decline in consolidated revenues for
+FY18 over FY17.
+FY18 guidance
+Significant resources are being allocated to R&D to strengthen the
+specialty and generic pipeline, including complex generics. Efforts are
+being made to develop, file and commercialise niche, low-competition
+products to help counter the significant price erosion in the US
+generics market. This will mandate increased R&D investments,
+including that for the development of the specialty pipeline.
+R&D investments
+Sun Pharma is on track to achieve the US$ 300 Million synergy
+benefits in FY18 from the Ranbaxy integration. These synergies
+will be driven by a combination of revenue synergies, procurement
+synergies, manufacturing rationalisation, productivity improvements
+and other cost-management measures. These synergy benefits will
+help the Company fund its evolving specialty business. As a part
+of the integration process, the Company has been taking steps to
+rationalise product portfolios and its global manufacturing presence.
+Ranbaxy integration
+During FY17, many of the Company facilities underwent audits by
+various global regulatory authorities, including the USFDA. These
+inspections have been successful, while there are outstanding deviations
+at some facilities, which the Company is in the process of resolving.
+letter for the Halol facility, Sun Pharma has undertaken various
+remedial measures. These remedial measures have resulted in
+supply constraints for some of its products. New approvals for the
+US from this facility have also been delayed. The Company expects
+this situation to continue for some more time till the outstanding
+deviations are resolved.
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+20
+CGMP compliance
+Sun Pharma has invested significant resources in enhancing its global
+specialty pipeline. These investments currently do not generate
+commensurate revenue and cash flows, as a substantial portion of
+the specialty pipeline is yet to be commercialised. The Company
+is focusing on enhancing the share of specialty/branded business
+and targeting differentiated product offerings. Dedicated teams
+for the branded ophthalmic, dermatology, oncology and CNS are
+being strengthened. A dedicated team for tildrakizumab has also
+been formed. The Company simultaneously continues to explore
+opportunities to expand its global specialty pipeline.
+Investing in specialty
+Outlook
+Post the significant remedial efforts undertaken over the past few
+years, the USFDA re-inspected Sun Pharma's Mohali facility in FY17;
+indicating lifting of the import alert which was imposed on the facility
+some years back.
+28
+Revenue contribution
+23
+SUN
+PHARMA
+Table 8
+Leadership in prescription rankings 10
+Specialist
+February 2016
+Specialist
+Psychiatrists
+1
+Psychiatrists
+February 2017
+Neurologists
+1
+Neurologists
+Cardiologists
+1
+Cardiologists
+Orthopaedic
+ANNUAL REPORT 2016-17
+EUK HO
+Corporate Office
+Respiratory
+Opthalmology
+Others
+No. 1
+Ranked in Indian pharmaceutical
+industry, with 8.6% market share
+12%
+11%
+(As on March 31, 2017)
+No. 1
+Ranked by prescriptions with 11
+different classes of doctors
+Overview
+▶ Sun Pharma is India's largest pharmaceutical company with 8.6%
+market share. It is one of leaders in the chronic segment and enjoys
+strong positioning in acute segment. It specialises in technically
+complex products, offering a comprehensive therapy basket.
+1
+▶ The Company owns 30 brands of the top 300 pharmaceutical
+brands in India.
+▶ Sun Pharma has one of the widest reach to the medical fraternity
+in India with a 9,200+ strong sales force reaching around 600,000
+doctors.
+▶ The sales force has one of the highest productivity among key
+players in India.
+Cardiology
+Neuro-Psychiatry
+Gastroenterology
+Anti-Infectives
+Diabetology
+Pain/Analgesics
+Dermatology
+Gynaecology
+Vitamins/Minerals/Nutrients
+▸ It has a well-diversified portfolio with low brand concentration.
+The top 10 brands contribute over 18% of India revenues.
+FY12-17 Revenue CAGR
+Orthopaedic
+1
+▸ Efforts are ongoing to enhance product basket through own
+development and in-licensing.
+EMERGING MARKETS
+15%
+Revenue contribution
+45 Bn
+Revenue from division
+100+ countries
+Presence across emerging markets
+(As on March 31, 2017)
+Consulting Physicians
+Dermatologists
+Urologists
+Oncologists
+Ophthalmologists
+Chest Physicians
+Overview
+1
+1
+1
+1
+▶ The Company is consistently innovating to ensure high brand
+equity with doctors.
+▶ Sun Pharma's future focus is on improving the productivity of
+India business and to maintain leadership position in a severely
+competitive market.
+▸ Government-mandated price controls and other regulatory
+changes coupled with fierce competitive intensity will continue to be
+key challenges for the industry.
+▶ The Indian pharmaceutical market offers good long-term potential
+driven by increasing per capita income, rising healthcare awareness,
+higher incidence of chronic ailments and gradually increasing
+insurance coverage.
+Nephrologists
+1
+Gastroenterologists
+Nephrologists
+Diabetologists
+1
+Diabetologists
+Consulting Physicians
+1
+Gastroenterologists
+Dermatologists
+Urologists
+1
+Oncologists
+1
+Ophthalmologits
+1
+1
+Chest Physicians
+Outlook and future focus
+1
+22%
+9%
+8.6%
+▶ Acceptance of tildrakizumab filing by the USFDA for the US market (in May 2017)
+FY08 onwards
+FY98-FY10
+FY98
+FY10
+FY13
+FY14
+FY15
+FY16
+FY17
+US business milestones
+Table 7
+PHARMA
+SUN
+ANDA FILINGS
+Chart 10
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+22
+21
+ANNUAL REPORT 2016-17
+▶ As of March 31, 2017, Sun Pharma had 157 ANDAs, 5 NDAs and
+1 BLA pending USFDA approval. This pipeline includes a combination
+of complex generics, First-to-File opportunities and normal generics,
+as well as specialty products.
+▶ Acquired Ocular Technologies - gives access to Seciera, a product for treating dry eyes
+▶Launched BromSite in US
+▶Acquired Odomzo - branded oncology product from Novartis
+Acquired InSite vision to strengthen the ophthalmic portfolio
+Expanded presence in the US with the addition of Ranbaxy's US business
+Acquired Pharmalucence to get access to sterile injectables capability
+▶Acquired DUSA and entered the branded specialty market
+Metabolism
+ནི རྩ ཥུ ཌི བྷྲ་ ༔ ༔་ རྩི རྩི
+30
+(As on March 31, 2017)
+427 ANDA APPROVALS BY THERAPEUTIC AREA
+44
+63
+27
+22
+▶ The Company has a comprehensive basket of 584 ANDAS, 41
+NDAs and 1 BLA filed and 427 ANDAs and 36 NDAs approved across
+multiple therapies.
+19
+▶ Sun Pharma's key specialty products in the US, viz. Absorica and
+Kerastick also contributed to the top-line growth.
+Launch of authorised generic versions of Olmesartan and its
+combinations in October 2016 was another key revenue contributor. The
+▸ Key contributors to revenues include Imatinib Mesylate Tablets
+(therapeutic equivalent to GleevecⓇ for indications approved by
+the USFDA). This product enjoyed the benefit of 180-day marketing
+exclusivity in the US, which commenced in February 2016 and expired in
+July 2016 post which, generic competition has intensified.
+▶ The US revenues for Taro (a 73% subsidiary) declined by 8% for
+FY17 driven primarily by a difficult generic pricing environment,
+particularly in the US, resulting from more intense competition
+among manufacturers, new entrants to the market, buying
+consortium pressures, and a higher ANDA approval rate from the
+USFDA.
+launch was pursuant to a distribution and supply agreement between
+Sun Pharma and Daiichi Sankyo Inc., which granted Sun Pharma,
+exclusive rights to distribute these tablets in the US for a pre-determined
+period.
+▸ Overall US revenues grew by 2% to 137,588 Million in FY17.
+The generics market in the US continues to face a challenging pricing
+environment driven by customer consolidation and increased competitive
+intensity. Besides these challenges, the cGMP issues at Halol facility has
+resulted in delaying new product approvals, which has impacted overall
+revenues from the US.
+Performance highlights, FY17
+Acquired Taro Pharma and forayed into the dermatology market
+Launched many complex generics and few FTFs
+Enhanced and strengthened the US business
+Entered into the US market by acquiring Caraco
+▶Acquired URL's generic business
+27
+▶ Sun Pharma's integrated manufacturing facilities have capability
+to manufacture products, both onshore and offshore across a variety
+of dosage forms including liquids, creams, gels, sprays, injectables,
+tablets, capsules and drug-device combinations.
+▸ One of the very few companies to have farm-to-market capabilities
+for controlled substances.
+▸ Key focus areas include CNS, dermatology, cardiology, oncology
+and ophthalmics, among others.
+26%
+Performance highlights, FY17
+▸ Revenue from Indian business increased by 8% to * 77,491 Million
+in FY17.
+▸ This growth was achieved, despite the temporary disruption
+caused by demonetisation and a negative price impact of wholesale
+price index on products under price control.
+Chart 11
+THERAPEUTIC REVENUE BREAK-UP⁹
+6%
+2%
+4%
+INDIAN BRANDED GENERIC BUSINESS
+19%
+77 Bn
+4%
+5%
+Market
+Share
+17%
+Revenue contribution
+Revenue from division
+7%
+4%
+1
+▸ Improve service levels for customers through 24x7 cGMP
+compliance, product robustness and supply chain consistency.
+▸ Ensure broad product offering to customers across multiple
+dosage forms.
+▶ Sun Pharma is the 4th largest specialty generic pharmaceutical
+company in the US market with presence across generics, branded
+and OTC segments.
+Cumulative ANDAs filed
+584
+Revenue from division
+137 Bn
+Overview
+(As on March 31, 2017)
+Cumulative ANDAS
+approved
+427
+▶ Gain critical mass in key therapeutic segments.
+FY12-17 Revenue CAGR
+Revenue contribution
+45%
+Business segment review
+US BUSINESS
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+Outlook and future focus
+Enhance share of specialty business.
+▸ Continue to focus on complex generics and high entry
+barrier segments.
+32%
+1
+1
+1
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+26
+▸ It intends to have a broader presence across OTC sub-categories in
+various markets.
+▶ Sun Pharma intends to continue investing in the accelerating
+OTC business across key markets through brand building and brand
+extensions.
+▶ Globally, emerging markets like Russia, Brazil and China have
+grown in higher single digits.
+▶ The Indian Consumer Healthcare market has grown at about 11.8%
+CAGR for the past five years.
+Outlook and future focus5,6
+▸ In October 2016, Sun Pharma launched Revital H Woman's
+'Healthy Conversations' initiative in India. This unique initiative aims
+to initiate a conversation about women's health. It was launched
+with the objective to encourage women to understand their health
+requirements and impact of their health on their families and overall
+society. Revital-H Woman's, Healthy Conversations, will reach out
+to women across 20 cities in India. It has created a special digital
+platform www.revitalwoman.com to reach over two million women
+in three months. Through the, Healthy Conversations, initiative, the
+Company encourages women to interact with expert nutritionists to
+understand and address their nutritional needs. The product, Revital
+H Woman is a combination of 12 Vitamins, 10 Minerals and Ginseng,
+which help in keeping women physically active and mentally relaxed
+throughout the day. Among other benefits, vitamins and minerals
+in Revital H Woman help in maintaining healthy bones, reducing
+fatigue, and maintaining healthy hair, skin and nails.
+Key highlights, FY17
+▸ The Company has presence across OTC sub-categories like
+Vitamins and Minerals, Cold and Flu, Analgesics, Digestive and
+Dermatology.
+‣ Sun Pharma has a dedicated sales force in each of these markets.
+▸ Key focus markets comprise India, Russia, Romania, Nigeria, South
+Africa and Myanmar, while growth markets include Ukraine, Poland,
+Kazakhstan, Thailand and UAE.
+▶ Sun Pharma is among the top 10 consumer healthcare companies
+in India, Romania, Nigeria and Myanmar.
+Overview
+OTC company in three markets
+Top 10
+Outlets in India
+300,000+
+Sales and distribution
+representatives in India
+▸ The Company is focusing on maintaining leadership in existing
+markets by offering innovative solutions to consumers.
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FY13
+FY12
+FY11
+5.6%
+4.4
+5.8%
+3.3
+R&D EXPENDITURE
+Chart 12
+2,500+
+Research and Development Investment
+100 Bn
+R&D investments are necessary for a company like Sun Pharma
+to maintain sustainable growth and enhance its market presence.
+Sun Pharma spent approximately 8% of sales, in FY17, on R&D. It
+believes that continuous investments in R&D will influence its overall
+performance positively. Going forward, it will help Sun Pharma
+differentiate itself by focusing on specialty products and technically
+complex products. In pursuit of differentiation, the Company is
+focusing on developing non-fringing formulations and development
+of specialty products. Additionally, Sun Pharma has a strong
+Intellectual Property Rights support team, which enables it to patent
+its innovations globally and in developing non-infringing products.
+In addition, Sun Pharma has experience in formulation of taste
+masking, spray-drying, drug-layering, nano-milling, lyophilization and
+other pharmaceutical unit operations.
+manufactures orals, liquids, ointments, gels, sprays, and injectables,
+among others.
+Sun Pharma's generic R&D capabilities have enabled it to
+commercialise a diverse range of products, including liposomal
+products, auto-injectors, lyophilized injections, nasal sprays, and
+controlled release dosage forms. Apart from these, the Company
+The Company employs about 2,000 research scientists working
+in multiple R&D centres equipped with cutting-edge technologies
+for research. With their expert knowledge in developing generic
+drugs and Active Pharmaceutical Ingredients (APIs), they form the
+backbone of the Company's R&D facility. Further, the team has
+the required skills and relevant experience in creating Novel Drug
+Delivery Systems (NDDS). Besides, Sun Pharma has been investing
+significant resources in developing completely new chemical and
+biological drugs for global markets. Currently, the Company has six
+such drugs in its pipeline, which are either being developed or are
+awaiting regulatory approvals.
+Sun Pharma has a strong presence in both regulated and emerging
+markets. This can be attributed to the Company's strong pipeline of
+generic and branded-generic products. Its research and development
+(R&D) capabilities have enabled Sun Pharma to produce key
+technology-intensive products, enhancing its presence in international
+markets. The Company has a portfolio of about 2,000 products across
+the world.
+R&D INNOVATION ORIENTED APPROACH
+FINANCIAL STATEMENTS 80-278
+Cumulative R&D expenditure, over the years, amounts to
+*100 Billion till date.
+Retail pharmacies
+internationally
+67,000+
+Country presence
+As on March 31, 2017
+DMF/CEP approvals
+291
+FY12-17 Revenue CAGR
+21%
+Revenue contribution
+5%
+ACTIVE PHARMACEUTICAL INGREDIENTS (API)
+BUSINESS
+▸ Improve profitability in developed European markets.
+16 Bn
+▸ Revenues for RoW markets increased by 19% to 25,832 Million
+in FY17.
+▸ The Company made an entry in Japan (in March 2016) through
+acquisition of 14 prescription brands from Novartis.
+▶ The product basket consists of injectables, hospital products, as
+well as products for the retail market.
+▶Sun Pharma's presence in the Rest of the World (ROW) spans
+across Western Europe, Japan, Canada, Israel, Australia and New
+Zealand.
+Overview
+(As on March 31, 2017)
+▸ Ramp up presence in Japan post transfer of Novartis brands to
+Sun Pharma.
+Outlook and future focus
+▸ During the year, the Company entered into a distribution alliance
+with Mitsubishi Tanabe Pharma Corporation (MTPC) for distribution
+of 14 brands acquired from Novartis in March 2016. Through this
+alliance, Sun Pharma can leverage MTPC's specialised expertise to
+create a strong business foundation in Japan.
+Revenue from division
+Performance highlights, FY17
+R&D Investment (* Bn)
+Revenue from division
+API manufacturing units
+20+
+Key brands
+17
+GLOBAL CONSUMER HEALTHCARE BUSINESS
+▸ Ensure long-term supply relationships with global customers.
+▸ Expand API portfolio to enhance the scale and scope of API
+operations.
+Outlook and future focus
+▸ The API revenues include the full benefit of consolidation of
+the opiates business (Australia) acquired from GSK last year in
+September 2015.
+▸ Revenue from APIs and other sources increased by 14% to
+*15,979 Million in FY17.
+14
+▶ The API manufacturing facilities are in India, Australia, Israel,
+Hungary and the US. Performance highlights, FY17
+▶ The Company manufactures over 300 APIs across 14 locations
+adding over 20 APIs to the portfolio, annually.
+API capability is of strategic importance as it provides cost
+competitiveness, speed to market and supply reliability through
+backward integration. A significant portion of API production acts as
+inputs for the Company's formulations business.
+Overview
+PHARMA
+SUN
+25
+ANNUAL REPORT 2016-17
+DMF/CEP filings
+428
+▸ Besides captive consumption, Sun Pharma also supplies APIs to
+customers, comprising large generic and innovator companies.
+26 Bn
+(As of March 31, 2017)
+FY14
+REST OF THE WORLD
+9%
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+DMFs approved in FY17
+15
+DMFs filed in FY17
+29
+Sun Pharma believes in meticulous following global manufacturing
+standards. It's manufacturing facilities have been certified by
+regulatory authorities of USA (FDA), Europe (EMA), the UK (MHRA),
+Australia (TGA), South Africa (MCC) and Germany (BfArM).
+Additionally, the Company has been certified by ANVISA (Brazil),
+WHO (Geneva), KFDA (Korea) and PMDA (Japan). It stresses on
+24x7 compliance to cGMP, which is imperative for a global business.
+Sun Pharma's manufacturing operations are focused on producing
+generics, branded generics, speciality, over-the-counter (OTC)
+products, anti-retrovirals (ARVS) and Active Pharmaceutical
+Ingredients (APIs). The Company also produces intermediates in the
+full range of dosage forms, including tablets, capsules, injectables,
+ointments, creams and liquids. Besides, it manufactures APIs, for
+controlled substances, steroids, peptides and anti-cancers products.
+Sun Pharma owns 42 active manufacturing assets spread across six
+continents. India, the US, Brazil, Russia, Canada, Hungary, Israel,
+Bangladesh, Mexico, Romania, Ireland, Morocco, Nigeria, South
+Africa, Malaysia and Australia host these production units. These
+facilities ensure that the Company provides best-in-class products
+to patients across 150 countries. The operations are vertically
+integrated, which enables maintenance of high quality, low cost and a
+quick market entry across geographies.
+GLOBAL MANUFACTURING CAPABILITIES
+ANDAS approved in FY17
+18
+Total patents granted
+751
+DMF/CEP cumulative
+applications approved
+291
+Cumulative NDA/BLA
+approved
+▶ Simultaneously, the Company is focused on improving business
+profitability in emerging markets by launching complex products and
+reducing presence in low profitable non-core product segments.
+▸ Efforts are on to develop, file and commercialise more products
+across therapeutic baskets to meaningfully participate in this growth
+opportunity.
+SUN
+FINANCIAL STATEMENTS 80-278
+1
+1
+2
+2
+▶ Sun Pharma is among the leading Indian companies in emerging
+markets with an extensive portfolio of branded products and
+presence across about 100 countries.
+▶ The key focus markets include Brazil, Mexico, Russia, Romania,
+South Africa and complementary and affiliated markets.
+▶ The Company has local manufacturing assets in eight countries;
+thus,facilitating a more meaningful participation in respective
+markets.
+▶ A 2300+, sales force leverages the opportunities offered by these
+markets.
+Performance highlights, FY17
+36
+▸ Revenue from emerging markets grew by 26% to 45,299 Million
+in FY17.
+▸ In November 2016, Sun Pharma acquired JSC Biosintez to
+enhanceits presence in Russian market. The acquisition gives access
+to a local manufacturing facility as well as expands the product
+offering for the Russian and CIS markets. Outlook and future focus
+▸ Given the favourable macroeconomic parameters, emerging
+markets offer good long-term potential.
+▸ Evaluate opportunities to enhance presence in key markets.
+▸ Sun Pharma's key focus will be to gain critical mass in key emerging
+markets by leveraging its product portfolio and front-end presence in
+these markets.
+24
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Formulation Plant
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+▶ The growth is broad-based among emerging markets.
+Cumulative ANDAS
+approved
+427
+ANDAS filed in FY17
+428
+DMF/CEP
+NDA/BLA
+ANDA
+FILINGS AND APPROVALS
+584
+7.6%
+23.1
+8.3%
+1023
+23.0
+19.6
+6.5%
+R&D Investment (% of Sales)
+FY17
+FY16
+FY15
+6.3%
+10.4
+104
+7.2%
+7.0
+PATENTS
+427
+27
+Total patent applications
+submitted
+1,023
+DMF/CEP cumulative
+applications filed
+428
+Cumulative NDA/BLA filed
+42
+Cumulative ANDAs filed
+584
+Approved
+Formulation Plant
+PHARMA
+SUN
+27
+ANNUAL REPORT 2016-17
+མི་རྩ་ནི།༄༔་ཆོཟླ་
+751
+291
+36
+Approved
+28
+1
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+ii)
+Figures for Financial Year 2015-16 have been restated as per Ind AS and therefore may not be comparable with financials for Financial Year
+2015-16 approved by the Directors and disclosed in the Financial Statement of previous year.
+251,630.4
+306,456.9
+126,353.4
+122,914.8
+(0.2)
+(302.3)
+(188.9)
+(1,041.7)
+(1,041.7)
+(50.6)
+(10,110.3)
+(7.5)
+(7.5)
+Closing balance in Retained Earnings
+32
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+During the year, the Board of Directors at its meeting held on
+November 10, 2016 approved the Scheme of Arrangement among
+Sun Pharma Medisales Private Limited, Ranbaxy Drugs Limited,
+Gufic Pharma Limited, Vidyut Investments Limited (collectively
+known as "Transferor Companies", which are the wholly owned
+subsidiaries of the Company) and the Company and their respective
+members and creditors ("Scheme of Arrangement"). The Hon'ble
+National Company Law Tribunal, at Ahmedabad vide its order dated
+April 18, 2017, dispensed with convening of meeting of secured
+creditors of the Company and ordered to convene the meeting
+SCHEME OF ARRANGEMENT FOR
+AMALGAMATION
+Further, on May 26, 2017, the Company alloted 3000 equity shares
+of *1/- each under Sun Employee Stock Option Scheme - 2015
+and 12,000 equity shares of *1/- each under Sun Employee Stock
+Option Plan - 2015.
+Consequent to above changes, the paid up share capital of the
+Company decreased to 2,399,291,181/- (Rupees Two Billion
+Three Hundred Ninety-Nine Million Two Hundred Ninety One
+Thousand One Hundred Eighty-One only) as on March 31, 2017
+from 2,406,728,499/- (Rupees Two Billion Four Hundred Six
+Million Seven Hundred Twenty-Eight Thousand Four Hundred
+Ninety-Nine only).
+On October 18, 2016, the Company completed Buyback of
+7,500,000 (Seventy Five Lakhs) fully paid-up equity shares of
+1/- each (representing about 0.31% of the total outstanding
+pre Buyback equity shares of our Company) at a price of
+900/- (Rupees Nine Hundred only) per equity share for an
+aggregate amount of ₹6,750,000,000/- (Rupees Six Billion
+Seven Fifty Million only) from the equity shareholders/
+beneficial owners holding equity shares as on Record Date i.e.
+July 15, 2016 on proportionate basis through the tender offer
+route using mechanism for acquisition of shares through Stock
+Exchange.
+The Company allotted 62682 equity shares of *1/- each
+under Sun Employee Stock Option Scheme-2015.
+-General reserve
+ii.
+The changes in the capital structure of the Company during the year
+under review, are as follows:
+CHANGES IN CAPITAL STRUCTURE
+Your Directors are pleased to recommend an equity dividend of
+*3.50/-(Rupees Three and Fifty Paise only) per equity share of
+*1/- each [previous year 1/- per equity share of *1/- each] for the
+year ended March 31, 2017, subject to the approval of the equity
+shareholders at the ensuing Annual General Meeting.
+DIVIDEND
+FINANCIAL STATEMENTS 80-278
+08-79
+i.
+-Legal reserve
+-Buy-back of equity shares by overseas subsidiary company
+-Capital reserve
+216,743.1
+251,630.4
+146,184.5
+126,353.4
+Opening balance in Retained Earnings
+12,684.9
+Amount available for appropriation
+7,284.3
+58,251.6
+56,306.1
+(11,123.0)
+(983.3)
+-Owners of the Company
+Total Comprehensive Income for the period attributable to:
+-Non-Controlling Interest
+of equity shareholders and unsecured creditors of the Company
+on June 20, 2017 to approve the Scheme of Arrangement. The
+appointed date for the said amalgamation is April 1, 2017 or such
+other date as may be agreed between the Transferor Companies
+and the Company and approved by the National Company Law
+Tribunal. Pursuant to Scheme of Arrangement, no consideration
+shall be paid and no shares of the Company shall be issued and
+allotted on amalgamation. The Scheme of Arrangement will enable
+the Company to consolidate and effectively manage the Transferor
+Companies and the Company in a single entity, which will provide
+several benefits including synergy, economies of scale, attain
+efficiencies and cost competitiveness.
+(949.6)
+68,933.4
+-Debenture redemption Reserve
+-Capital redemption Reserve
+Transfer to various Reserves:
+(1,469.7)
+(490.0)
+(1,469.7)
+(11,141.9)
+(74.7)
+(7,219.5)
+(2,406.8)
+(7,219.5)
+(2,406.8)
+Dividend on Equity Shares
+45,109.6
+Corporate Dividend tax
+EXTRACT OF ANNUAL RETURN
+The extract of Annual Return as provided under sub-section (3) of
+Section 92 of the Companies Act, 2013 ('the Act') as prescribed in
+form MGT-9 is enclosed as "Annexure A❞ to this Report.
+SUBSIDIARIES/JOINT VENTURES/ASSOCIATE
+AUDITORS
+Statutory Auditors
+The Company's Auditor, Messrs. Deloitte Haskins & Sells LLP,
+Chartered Accountants, (Firm's Regn No. 117366W/W-100018),
+were appointed as the Statutory Auditors of the Company for a
+period of three years at the 22nd Annual General Meeting of the
+Company, and they shall retire at the conclusion of the ensuring
+25th Annual General Meeting of the Company. The Auditors' Report
+for the financial year ended March 31, 2017, has been issued with
+an unmodified opinion, by the Statutory Auditors. The Board of
+Directors placed on record their appreciation for the retiring auditors.
+The Board of Directors of the Company had proposed and
+recommended the appointment of M/s. S RBC & Co LLP, Chartered
+Accountants, (Firm Registration No. 324982E/E300003) as the
+statutory auditors of the Company for a period of 5(Five) years from
+the conclusion of 25th Annual General Meeting of the Company,
+upto the conclusion of the 30th Annual General Meeting of the
+Company, subject to approval of members at the ensuing 25th
+Annual General Meeting and ratification by members at every
+Annual General Meeting of the Company. M/s. S R BC & Co LLP,
+Chartered Accountants, have confirmed their eligibility under
+Section 141 of the Act and the Rules framed thereunder for the
+appointment as Auditors of the Company and as required under
+Regulation 33 of the Listing Regulations, 2015.
+Secretarial Auditor
+Pursuant to the provisions of Section 204 of the Companies Act,
+2013 and the Companies (Appointment and Remuneration of
+Managerial Personnel) Rules, 2014, the Company has appointed
+Messrs C. J. Goswami & Associates, Practicing Company Secretaries,
+Mumbai to undertake the Secretarial Audit of the Company. The
+Secretarial Audit Report is annexed herewith as "Annexure C".
+The Secretarial Audit Report does not contain any qualification,
+reservation or adverse remark.
+Cost Auditor
+The Company has appointed Messrs. Kailash Sankhlecha &
+Associates, Cost Accountants, Vadodara as Cost Auditor of our
+Company for conducting Cost Audit in respect of Bulk Drugs &
+Formulations of your Company for the year 2017-18.
+LOANS, GUARANTEES & INVESTMENTS
+The particulars of loans, guarantees and investments have been
+disclosed in the Financial Statements.
+RELATED PARTY TRANSACTIONS
+The policy on Related Party Transactions as approved by the Board
+is available on the website of the Company and can be accessed
+through the web link http://www.sunpharma.com/policies. All
+contracts/arrangements/transactions entered by the Company
+ANNUAL REPORT 2016-17
+35
+SUN
+PHARMA
+during the previous financial year with the related parties were in
+the ordinary course of business and on arm's length basis.
+The Company has entered into material Related Party Transactions,
+i.e. transactions exceeding ten percent of the annual consolidated
+turnover as per the last audited financial statements, during the year
+with Sun Pharma Laboratories Limited, a wholly owned subsidiary.
+The transactions entered into between a holding company and its
+wholly owned subsidiary do not require approval of the shareholders.
+The Company has not accepted any deposit from the Public during
+the year under review, under the provisions of the Act and the rules
+framed thereunder.
+PUBLIC DEPOSITS
+In accordance with the Regulation 43A of Listing Regulations,
+2015, the Company has formulated Dividend Distribution Policy
+and the same is annexed herewith as "Annexure E". The policy is
+also available on the website of the Company and can be accessed
+through the web link: http://www.sunpharma.com/policies.
+DIVIDEND DISTRIBUTION POLICY
+Company was not required to spend on CSR activities during the
+previous year. However, the Company has voluntarily spent on CSR
+activities and the annual report on CSR activities containing details
+of voluntary expenditure incurred by the Company and brief details
+on the CSR activities are given in "Annexure D❞.
+In compliance with the requirements of Section 135 of the Act
+read with the Companies (Corporate Social Responsibility Policy)
+Rules, 2014, the Board of Directors have constituted a Corporate
+Social Responsibility (CSR) Committee. The details of membership
+of the Committee & the meetings held are detailed in the Corporate
+Governance Report, forming part of this Report. The contents of
+the CSR Policy of the Company as approved by the Board on the
+recommendation of the CSR Committee is available on the website
+of the Company and can be accessed through the web link: http://
+www.sunpharma.com/policies. The average net profits of the
+Company for last three financial years is negative, therefore the
+Your Company strongly believes in providing a safe and harassment
+free workplace for each and every individual working for the
+Company through various interventions and practices. It is the
+continuous endeavor of the Management of the Company to
+create and provide an environment to all its employees that is free
+from discrimination and harassment including sexual harassment.
+The Company has adopted a policy on prevention, prohibition
+and redressal of sexual harassment at workplace in line with the
+provisions of the Sexual Harassment of Women at Workplace
+(Prevention, Prohibition and Redressal) Act, 2013 and the Rules
+thereunder. The Company arranged various interactive awareness
+workshops in this regard for the employees in the manufacturing
+sites, R & D set ups & Corporate Office during the financial year.
+The Company submitted the Annual returns to the local authorities
+under the above mentioned act. During the financial year ended
+March 31, 2017, no complaint pertaining to sexual harassment was
+received by the Company.
+CORPORATE SOCIAL RESPONSIBILITY
+INTERNAL FINANCIAL CONTROLS
+The Company has developed & implemented an integrated
+Enterprise Risk Management Framework through which it identifies
+monitors, mitigates & reports key risks that impacts its ability
+to meet the strategic objectives. The Board of Directors have
+constituted a Risk Management Committee which is entrusted with
+the responsibility of overseeing various strategic, operational and
+financial risks that the organisation faces, along with the adequacy
+of mitigation plans to address such risks. There is an overarching
+Risk Management Policy in place that was reviewed and approved
+by the Board. The Corporate Governance Report, which forms a part
+of this Report, contains the details of Risk Management Committee.
+RISK MANAGEMENT
+The details pertaining to composition of Audit Committee are
+included in the Corporate Governance Report, which forms a part of
+this Report.
+AUDIT COMMITTEE COMPOSITION
+The disclosure of Related Party Transactions as required under
+Section 134(3)(h) of the Act in Form AOC 2 is not applicable for the
+current year.
+The Company has in place well defined and adequate internal
+financial control framework. During the year under review, such
+controls were tested and no material weaknesses in their design or
+operations were observed.
+DISCLOSURE UNDER THE SEXUAL HARASSMENT
+OF WOMEN AT WORKPLACE (PREVENTION,
+PROHIBITION AND REDRESSAL) ACT, 2013
+Your Company recognises that employees are the most valuable
+resource and endeavors to enable its employees to meet business
+requirements while meeting their career aspirations. The Human
+Resource agenda continues to support the business in achieving
+sustainable and responsible growth by building the right capabilities
+in the organisation. It continues to focus on progressive employee
+relations policies and building a high-performance culture with
+a growth mind-set where employees are engaged, productive
+and efficient. Globally the Company (including subsidiary and
+associate companies) has a dedicated human capital of over 30,000
+employees at various locations across our Corporate Office, R
+&D Centers & more than 42 active Manufacturing locations,
+dedicated Sales Professionals across various geographies. Your
+Directors would also like to take this opportunity to express their
+appreciation for the hard work and commitment of the employees
+of the Company and look forward to their continued contribution.
+Information as per Section 197 (12) of the Act read with Rule 5(1)
+of the Companies (Appointment and Remuneration of Managerial
+Personnel) Rules, 2014 is provided in "Annexure B" to this report.
+Further, the information pertaining to 5(2) & 5(3) of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules,
+2014, pertaining to the names and other particulars of employees
+is available for inspection at the Registered office of the Company
+during business hours and pursuant to the proviso to Section 136
+(1) of the Act, the report and the accounts are being sent to the
+members excluding this. Any shareholder interested in obtaining a
+copy of the same may write to the Company Secretary/Compliance
+Officer at Corporate office or Registered office address of the
+Company.
+HUMAN RESOURCES
+Mr. Uday Baldota, Chief Financial Officer of the Company, has
+resigned as Chief Financial Officer w.e.f. June 19, 2017 to assume
+office as Chief Executive Officer of Taro Pharmaceutical Industries
+Limited, a subsidiary of the Company and Mr. C.S. Muralidharan has
+been appointed as Chief Financial Officer w.e.f June 19, 2017 at the
+Board Meeting held on May 26, 2017.
+Appropriate resolutions for the appointment of the Directors are
+being placed for your approval at the ensuing Annual General
+Meeting. Your Directors recommend the appointment of the aforesaid
+Directors by the Members at the ensuing Annual General Meeting.
+The term of appointment of Mr. Dilip S. Shanghvi as Managing
+Director will expire on March 31, 2018. He has made significant
+contribution to overall growth of the Company's business. Your
+Directors recommend the re-appointment of Mr. Dilip S. Shanghvi
+for a further period of five years from April 1, 2018 to March 31,
+2023, at remuneration as proposed in the resolution.
+PHARMA
+SUN
+33
+DECLARATION BY INDEPENDENT DIRECTORS
+The Company has received declarations from all the Independent
+Directors of the Company confirming that they meet with the criteria
+of independence as prescribed under sub-section (6) of Section
+149 of the Act and as per SEBI (Listing Obligations and Disclosure
+Requirements) Regulations, 2015 ("Listing Regulations, 2015").
+ANNUAL REPORT 2016-17
+Mr. Israel Makov and Mr. Sailesh T. Desai, Directors of the Company
+retire by rotation and being eligible offer themselves for re-
+appointment at the ensuing Annual General Meeting.
+DIRECTORS & KEY MANAGERIAL PERSONNEL
+Details pertaining to companies that became subsidiaries/joint
+ventures /associates and those that ceased to be the subsidiaries/joint
+ventures/associates of the Company during the year are provided in
+Note 39 of the notes to the Consolidated Financial Statements, forming
+part of this Annual Report.
+The highlights of performance of subsidiaries, joint ventures and
+associate companies and their contribution to the overall performance of
+the Company during the financial year is given under Annexure A of the
+Consolidated Financial Statements forming part of this Annual Report.
+The statement containing the salient features of the Financial
+Statements of the Company's subsidiaries/joint ventures/ associate
+companies of the Company is given in Form AOC - 1, which forms a
+part of this Annual Report.
+COMPANIES
+Mr. Kalyanasundaram Subramanian was appointed as an Additional
+and Whole-time Director of the Company, without remuneration,
+w.e.f. February 14, 2017 as per the provisions of Section 161(1)
+of the Act and he shall hold the office upto the date of ensuing
+Annual General Meeting. The Board recommends appointment of
+Mr. Kalyanasundaram Subramanian as a Whole-time Director of
+the Company for a period of 2 (Two) years upto February 13, 2019
+without any remuneration, for approval of the members at the
+ensuing Annual General Meeting.
+70,936.5
+REMUNERATION POLICY FOR DIRECTORS,
+KEY MANAGERIAL PERSONNEL AND OTHER
+EMPLOYEES AND CRITERIA FOR APPOINTMENT
+OF DIRECTORS
+FAMILIARISATION PROGRAMME FOR THE
+INDEPENDENT DIRECTORS
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+34
+The performance of the Board was evaluated by the Board after
+seeking inputs from all the Directors on the basis of various criteria
+such as structure and diversity of the Board, experience of Director,
+strategy and performance evaluation, secretarial support, evaluation
+of risk, evaluation of performance of the management and
+feedback, independence of the management from the Board etc.
+The performance of the Committees was evaluated by the Board
+after seeking inputs from the Committee members on the basis
+of criteria such as mandate and composition, effectiveness of the
+committee, structure of the committee and meetings, independence
+of the committee from the Board and contribution to decisions of
+the Board. The Nomination and Remuneration Committee reviewed
+the performance of the individual Directors on the basis of the
+criteria such as knowledge and competency, fulfillment of functions,
+availability and attendance, initiative integrity contribution and
+commitment, independence, independent views and judgement etc.
+For the purpose of selection of any Director, the Nomination &
+Remuneration Committee identifies persons of integrity who possess
+relevant expertise, experience and leadership qualities required for the
+position. The Committee also ensures that the incumbent fulfills such
+criteria with regard to qualifications, positive attributes, Independence,
+age and other criteria as laid down under the Act, Listing Regulations,
+2015 or other applicable laws. The Board has, on the recommendation
+of the Nomination & Remuneration Committee framed a policy
+on remuneration of Directors & Key Managerial Personnel. The
+Remuneration Policy of the Company is enclosed as Annexure B to
+Corporate Governance Report, which forms part to this Report.
+In a separate meeting of Independent Directors, performance of
+Non Independent Directors and performance of the Board as a
+whole was evaluated. Further, they also evaluated the performance
+of the Chairman of the Company, taking into account the views of
+the Executive Directors and Non-executive Directors.
+EVALUATION OF PERFORMANCE OF THE BOARD,
+ITS COMMITTEES AND INDIVIDUAL DIRECTORS
+During the year, the evaluation of the annual performance of
+individual directors including the Chairman of the Company and
+Independent Directors, Board and Committees of the Board was
+carried out under the provisions of the Act and relevant Rules
+and the Corporate Governance requirements as prescribed under
+Regulation 17 of Listing Regulations, 2015 and the circular issued by
+SEBI dated January 5, 2017 with respect to Guidance Note on Board
+Evaluation. The Nomination and Remuneration Committee had
+approved the indicative criteria for the evaluation based on the SEBI
+Guidance Note on Board Evaluation.
+The Board of Directors of the Company met 6 (Six) times during the
+previous financial year on May 30, 2016; June 23, 2016; August
+12, 2016; September 17, 2016; November 10, 2016 and February
+14, 2017. The particulars of attendance of the Directors at the said
+meetings are detailed in the Corporate Governance Report of the
+Company, which forms a part of this Report. The intervening gap
+between the Meetings was within the period prescribed under the
+Act and Listing Regulations, 2015.
+NUMBER OF MEETINGS OF THE BOARD
+http://www.sunpharma.com/policies.
+www.sunpharma.com and may be accessed through the web link:
+In compliance with the requirements of Regulation 25(7) of
+the Listing Regulations, 2015, the Company has put in place
+a Familiarisation Programme for the Independent Directors
+to familiarise them with the Company, their roles, rights,
+responsibilities in the Company, nature of the industry in which
+the Company operates, business model etc. The details of the
+Familiarisation Programme conducted are available on the website
+of the Company
+The Chairman of the Company interacted with each Director
+individually, for evaluation of performance of the individual
+directors. The evaluation for the performance of the Board as a
+whole and of the Committees were conducted by questionnaires.
+63,590.4
+(11,123.0)
+14,353.4
+One each in Canada, South Africa, Malaysia, Mexico, Hungary,
+Israel, Bangladesh, Romania, Russia, Egypt and Nigeria
+14 API manufacturing sites
+▸ India: 9
+Australia: 2
+▶ One each in Israel, US and Hungary
+Bangladesh Plant
+- Kuala Lumpur (Malaysia)
+Port Fairy,
+Australia
+Latrobe,
+Australia
+Karkhadi.
+Guwahati
+--- Dewas
+Sikkim Plant (2 units)
+Malanpur
+-- Ahmednagar
+-- Dadra
+-- Goa
+With its 30,000+ strong workforce, Sun Pharma engages in several
+skill development activities. The Company has various management
+programmes for employees to enhance their skills. Additionally,
+its knowledge-sharing platforms allow employees to grow
+professionally and get future ready.
+Being a global pharmaceutical company, Sun Pharma attracts diverse
+talents from over 50 nationalities. The Company, with its vibrant
+work culture, nurtures this assorted talent pool beyond any race,
+gender or nationality. While concentrating on building the bench-
+strength for future leadership, Sun Pharma offers individuals good
+growth opportunities.
+MANAGING TALENT
+PHARMA
+SUN
+29
+▶ US: 4
+ANNUAL REPORT 2016-17
+▸ The Panoli and Ahmednagar (both in India) has USFDA
+and European approvals. These are standalone units for
+peptides, anti-cancer, steroids and sex hormones,
+among others
+Key API Plants
+Injectables/Sterile: Vials, Ampoules, Pre-filled Syringes, Gels,
+Lyophilized Units, Dry powder, Eye drops, MDI and Aerosols
+▸ Topicals: Creams and Ointments
+▸ Orals: Tablets/Capsules, Semisolids, Liquids and Suppository
+Delivery formats
+- Maduranthakam
+▶ The plants in Australia, Hungary and the US (Tennessee)
+are capable of manufacturing of controlled substances
+India: 13
+28 finished dosage manufacturing sites
+---Paonta
+"
+L
+■API and Formulation Plant
+API Plant
+Formulation Plant
+Tennessee --
+Iztapalapa (Mexico)- - -
+_
+Ontario (Canada)
+New Jersey (US)
+Wilmington M.A.
+GLOBAL MANUFACTURING FOOTPRINT
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+Billerica, MA
+The management at Sun Pharma believes engaging employees
+helps in reduced employee attritions. The Company promotes equal
+opportunities for individuals, and values healthy work-life balance.
+Cranbury
+Lagos (Nigeria)
+-Jammu
+Iny
+Penza (Russia)
+Cluj (Romania)
+Tiszavasvari (Hungary)
+-1
+Giza, (Egypt)
+Haifa (Israel)
+Ankleshwar
+Panoli
+Dahej
+Halol
+Mohali
+Toansa
+Baddi
+Be-Tabs (South Africa)
+Silvassa
+MANAGEMENT DISCUSSION AND ANALYSIS
+ADHERENCE TO QUALITY
+The Company's global Quality Management Team ensures that
+every product it manufactures and distributes, complies with all
+internationally accepted good practices and standards of quality,
+purity, efficacy and safety.
+Standalone
+Consolidated
+Year ended
+Year ended
+March 31, 2017 March 31, 2016
+78,067.0
+78,636.9
+(324.4) (10,820.6)
+Year ended
+315,784.4
+90,478.7
+Year ended
+March 31, 2017 March 31, 2016
+284,870.3
+65,706.3
+-Current Tax
+25.1
+54.5
+4,046.4
+11,954.1
+-Deferred Tax Charge / Credit
+8,069.3
+(2,816.4)
+(Loss) / Profit after tax
+(349.5)
+(14,871.9)
+(247.9)
+(633.8)
+(983.3)
+Total Other Comprehensive Income
+Net Profit after taxes and share of profit / (loss) of associates and joint
+ventures but before non-controlling interests
+14.5
+(in Million)
+99.3
+56,568.6
+78,363.0
+Profit after Tax before Share in profit /(loss) of associates and non-
+controlling interests
+56,568.6
+78,363.0
+(10,875.1)
+Share of Profit of Associates / Joint ventures (Net)
+Tax Expense:
+Profit Before Tax
+Revenue
+5. Euromonitor 2016
+6. Nicholas Hall 2015
+7. Nicholas Hall 2016
+8. IMS, IBEF
+3. Deloitte (Global Life Sciences Outlook 2016)
+4. Markets and Markets
+2. Evaluate Pharma (World Preview, September-2016) & Deloitte
+(Global Life Science Outlook 2015)
+1. IMS Market Prognosis, October 2016
+BIBLIOGRAPHY
+Statements in this 'Management Discussion and Analysis' describing
+the Company's objectives, projections, estimates, expectations, plans or
+predictions or industry conditions or events are 'forward-looking statements'
+within the meaning of applicable securities laws and regulations. Actual
+results, performance or achievements could differ materially from those
+expressed or implied. Important factors that could make a difference to the
+Company's operations include global and Indian demand supply conditions,
+finished goods prices, feedstock availability and prices, competitors' pricing
+in the Company's principal markets, changes in Government regulations, tax
+regimes, economic conditions within India and the countries within which the
+Company conducts businesses and other factors, such as litigation and labour
+unrest or other difficulties. The Company assumes no responsibility to publicly
+update, amend, modify or revise any forward-looking statements, based on
+any subsequent development, new information or future events or otherwise
+except as required by applicable law. Unless the context otherwise requires, all
+references in this document to 'we', 'us' or 'our' refers to Sun Pharmaceutical
+Industries Limited and consolidated subsidiaries.
+9. AIOCD-AWACS MAT March-2017
+10. SMSRC Prescription Audit
+DISCLAIMER
+Sun Pharma believes that internal control is a prerequisite of the
+principle of Governance and that freedom should be exercised
+within a framework of checks and balances. The Company has a
+well-established internal control framework, which is designed to
+continuously assess the adequacy, effectiveness and efficiency of
+financial and operational controls. The management is committed
+to ensure an effective internal control environment, commensurate
+with the size and complexity of the business, which provides an
+assurance on compliance with internal policies, applicable laws,
+regulations and protection of resources and assets.
+INTERNAL CONTROL
+During FY17, many of the Company's facilities underwent audits by
+various global regulatory authorities, including the USFDA. These
+inspections have been successful, while there were outstanding deviations
+at some facilities, which the Company is in the process of resolving.
+and conformance.
+Each site has well-trained personnel for quality control, along with
+a regulatory affairs department ensuring strict adherence to quality
+systems and procedures. The teams are guided by a Corporate
+Quality Unit (CQU). CQU ensures that the latest updates in GMP
+are being translated into guidelines, standard operating procedures
+(SOPs) and protocols. The teams ensure that these guidelines are
+implemented to deliver quality products every time. In addition,
+the manufacturing plants are audited by an autonomous Corporate
+Compliance Department with a view to ensuring 24 x 7 compliance
+To maintain quality standards, every facility has well-defined
+procedures and systems in place. In compliance with the
+requirements of the Current Good Manufacturing Practices (cGMP),
+WHO, PIC's and EU GMP, the Company ensures that the operating
+procedures meet the very exacting standards of regulators like the
+USFDA, EMA, HC, WHO and TGA, among others.
+An independent and empowered Global Internal Audit Function
+at the corporate level carries out risk-focused audits across all
+businesses (both in India and overseas), which actively identifies
+areas, where business process controls are ineffective or may
+need enhancement. These reviews include financial, operational,
+compliance controls and risk mitigation plans. The Audit Committee
+of the Board periodically reviews key findings and provides
+strategic guidance. The Company's operating management closely
+monitors the internal control environment and ensures that the
+recommendations are effectively implemented.
+Sun Pharma's commitment to implementing a robust global quality
+management system is based on its determination to sustain a
+culture of operational excellence, meeting and exceeding the
+expectations of all stakeholders, including regulators, patients and
+customers. Putting patients first is Sun Pharma's motto.
+30
+32
+Total
+Particulars
+FINANCIAL RESULTS
+Your Directors take pleasure in presenting the Twenty-Fifth Annual Report and Company's Audited Financial Statements for the financial year
+ended March 31, 2017.
+BOARD'S REPORT
+PHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+SUN
+170
+Standalone Financial
+Statements
+80
+Corporate
+Governance
+62
+Board's Report
+Consolidated Financial
+Statements
+The Management Discussion and Analysis as prescribed under Part B
+of Schedule V read with Regulation 34 (3) of the Listing Regulations,
+2015 is provided in a separate section and forms a part of this Report.
+Total Comprehensive Income
+Report on Corporate Governance and Certificate of the Auditors of
+the Company regarding compliance of the conditions of Corporate
+Governance as stipulated in Part C of Schedule V of the Listing
+Regulations, 2015, are enclosed as a separate section and forms a
+part of this Report.
+N.A.
+Bangladesh
+Sun Pharmaceutical (Bangladesh) Limited
+Sun Pharma Holdings
+2345
+2(87)(ii)
+100.00
+Applicable
+Section
+% of
+shares held
+Holding/
+Subsidiary/
+Associate
+Subsidiary
+N.A.
+Mexico
+SPIL De Mexico S.A. DE C.V.
+1
+Company
+Subsidiary
+No
+Name of the Company
+Address of the
+Sr.
+III PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES AS ON MARCH 31, 2017
+% to total turnover of
+the Company
+100%
+NIC code of the
+Product/Service
+210
+Pharmaceuticals
+1
+products/services
+Sr.no
+Name and Description of main
+All the business activities contributing 10% or more of the total turnover of the Company:
+PRINCIPAL BUSINESS ACTIVITY OF THE COMPANY
+||
+CIN/GLN
+Tel No: +91 22 49186270
+72.50
+Mauritius
+CORPORATE GOVERNANCE REPORT
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+38
+U90009GJ2010PLC062892 Subsidiary 100.00 2(87)(ii)
+N.A.
+Subsidiary 100.00 2(87)(ii)
+U25200MH1997PLC240268 Subsidiary 100.00 2(87)(ii)
+India
+Venezuela
+India
+Sun Pharma Laboratories Limited
+Sun Pharma DE Venezuela, C.A.
+89
+Green Eco Development Centre Limited
+7
+2(87)(ii)
+Subsidiary 100.00
+N.A.
+OOO "Sun Pharmaceutical Industries"
+Limited
+2(87)(ii)
+6
+Subsidiary 99.33
+N.A.
+Peru
+Sun Pharmaceutical Peru Sociedad
+Anonima Cerrada
+2(87)(ii)
+75.00
+Subsidiary
+N.A.
+Mexico
+Sun Pharma DE Mexico S.A. DE C.V.
+2(87)(ii)
+100.00
+Subsidiary
+N.A.
+2(87)(ii)
+Mumbai 400 083
+Russia
+C 101, 247 Park,
+BUSINESS RESPONSIBILITY REPORTING
+ICRA Ltd. has reaffirmed the highest credit rating of '[ICRA]
+A1+'/'[ICRA] AAA(Stable)' for the bank facilities, long term/short
+term borrowings and commercial paper programs of the Company.
+Further, CRISIL Ltd. has also reaffirmed the highest credit rating of
+'CRISIL A1+ and CRISIL AAA/Stable' for short term and long term
+bank facilities of the Company.
+CREDIT RATING
+The consolidated financial statements for the year ended March
+31, 2017 has been prepared in accordance with Indian Accounting
+Standards (Ind AS) notified under the Companies (Indian Accounting
+Standards) Rules, 2015 together with the comparative period data
+as at and for the previous year ended March 31, 2016. Further, the
+Company has prepared the opening consolidated balance sheet as at
+April 1, 2015 (the transition date) in accordance with Ind AS.
+CONSOLIDATED ACCOUNTS
+the Directors have devised proper systems to ensure
+compliance with the provisions of all applicable laws and that
+such systems were adequate and operating effectively.
+f)
+the Directors have laid down internal financial controls to
+be followed by the Company and that such internal financial
+controls are adequate and were operating effectively; and
+the Directors have prepared the annual accounts on a going
+concern basis;
+the Directors have taken proper and sufficient care for the
+maintenance of adequate accounting records in accordance
+with the provisions of this Act for safeguarding the assets of
+the Company and for preventing and detecting fraud and other
+irregularities;
+the Directors have selected such accounting policies and
+applied them consistently and made judgments and estimates
+that are reasonable and prudent so as to give a true and fair
+view of the state of affairs of the Company as at March 31,
+2017 and of loss of the Company for the year ended on
+that date;
+in the preparation of the annual accounts for the financial year
+ended March 31, 2017, the applicable accounting standards
+have been followed and there are no material departures from
+the same;
+d)
+c)
+The Business Responsibility Report of the Company for the year
+ended March 31, 2017, in line with Green initiative, is made
+available on the website of the Company (http://www.sunpharma.
+com/pdflist/all-documents) and forms part of the Annual Report,
+and is available at the Registered office / Corporate office of the
+Company for inspection. A copy of the aforesaid report shall be
+made available to such of those shareholders who are desirous and
+interested, upon receipt of a written request from them.
+b)
+DIRECTORS' RESPONSIBILITY STATEMENT
+Pursuant to the requirements under Section 134(5) read with
+Section 134(3)(c) of the Act, with respect to Directors' Responsibility
+Statement, it is hereby confirmed that:
+WHISTLE BLOWER POLICY/VIGIL MECHANISM
+To create enduring value for all stakeholders and ensure the highest
+level of honesty, integrity and ethical behaviour in all its operations,
+the Company has adopted a 'Global Whistle Blower Policy' for Sun
+Pharmaceutical Industries Limited (SPIL) and all its subsidiaries,
+in addition to the existing Global Code of Conduct that governs
+the actions of its employees. Further details on vigil mechanism of
+the Company are provided in the Corporate Governance Report,
+forming part of this report.
+SIGNIFICANT AND MATERIAL ORDERS PASSED BY
+THE REGULATORS OR COURTS OR TRIBUNALS
+There are no significant and material orders passed by the regulators
+or courts or tribunals which impact the going concern status and
+Company's operations in future.
+Disclosures with respect to the Employees' Stock Option Schemes
+in compliance with Securities and Exchange Board of India (Share
+Based Employee Benefits) Regulations, 2014 are available on the
+Company's website and can be accessed at: http://www.sunpharma.
+com/pdflist/all-documents.
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+36
+The Company has two Employees' Stock Option Schemes, one
+through Trust Route and the other by Direct Route, both inherited
+from erstwhile Ranbaxy Laboratories Limited (“Ranbaxy"). The
+scheme through Direct Route has been named as Sun Pharma
+Employee Stock Option Scheme - 2015, and the one through
+Trust Route as Sun Pharma Employee Stock Option Plan - 2015.
+Both the schemes were adopted by the Company with certain
+amendments consequent upon merger of erstwhile Ranbaxy into the
+Company. The both the Schemes are in compliance with Securities
+and Exchange Board of India (Share Based Employee Benefits)
+Regulations, 2014.
+EMPLOYEES' STOCK OPTION SCHEMES
+The information on conservation of energy, technology absorption
+and foreign exchange earnings and outgo as stipulated under
+Section 134(3)(m) of the Act read with Rule 8 of The Companies
+(Accounts) Rules, 2014, is annexed herewith as "Annexure F".
+LBS Marg, Vikhroli West,
+CONSERVATION OF ENERGY, TECHNOLOGY
+ABSORPTION AND FOREIGN EXCHANGE
+EARNINGS AND OUTGO
+a)
+ACKNOWLEDGEMENTS
+STATUTORY REPORTS
+The Directors also wish to express their gratitude to investors for
+the faith that they continue to repose in the Company.
+Yes
+Your Directors wish to thank all stakeholders, employees and
+business partners, Company's bankers, medical profession and
+business associates for their continued support and valuable co-
+operation.
+Link Intime India Private Limited
+SPARC, Tandalja, Vadodara 390020, Gujarat
+0265-6615500
+Sun Pharmaceutical Industries Limited
+Company Limited By Shares
+L24230GJ1993PLC019050
+March 1, 1993
+vi) Whether listed company
+Contact no of registered office
+v) Address of the Registered Office and Contact details
+iv) Category/Sub-category of the Company
+iii) Name of the Company
+Registration date
+CIN
+i)
+I.
+vii) Name, Address, and Contact details of Registrar and Transfer Agent
+Rule 12(1) of the Companies (Management and Administration) Rules, 2014
+May 26, 2017
+Mumbai
+REGISTRATION AND OTHER DETAILS:
+Israel Makov
+Chairman
+ANNUAL REPORT 2016-17
+37
+SUN
+PHARMA
+For and on behalf of the Board of Directors
+ANNEXURE-A
+FORM MGT-9
+EXTRACT OF ANNUAL RETURN
+as on the financial year ended 31.03.2017
+Pursuant to Section 92(3) of the Companies Act, 2013 and
+3531944
+0.00
+12.33
+0.15
+0
+0
+0
+0.00
+0.00
+30411920
+375280
+30787200
+1.28 -11.05
+ii)
+0.04
+Non Resident Indians(Non-
+2005185
+0
+2005185
+0
+0.08
+4019379 375280
+2281621
+4394659
+0.18
+380453
+2281621
+3151491
+Total during
+i)
+No. of Shares held at the beginning of the year
+Category of Shareholders
+0.10
+No. of Shares held at the end of the year
+%
+% of Change
+Demat
+Physical
+Total
+% of Total
+Shares
+Demat
+Non Resident Indians(Repat)
+Physical
+Shares the year
+c)
+Qualified Foreign Investors
+0
+0
+0
+d)
+Others (specify)
+296456469
+380453
+296836922
+Total
+0.01
+0.16
+iii) Foreign Companies
+3794306
+3784017
+0
+3784017
+0.16
+0.00
+8902546
+0
+8902546
+0.37
+13847725
+0
+0
+0.58
+0.21
+272477175
+0 272477175
+11.32
+0
+0
+0
+0.00
+Category-wise shareholding
+-11.32
+13847725
+Repat)
+3794306
+viii) Overseas Corporate Bodies
+813962
+0
+813962
+0.03
+813562
+0
+813562
+0.03
+0.00
+iv) Clearing Member
+1653586
+At the end of the year
+0
+0.07
+1770770
+0
+1770770 0.07
+0.01
+v)
+vi)
+Trusts
+(Corporate)
+Directors/ Relatives
+vii) Foreign Portfolio Investor
+1653586
+i)
+i)
+08-79
+0
+0
+0
+0.00
+0.00
+h)
+Qualified Foreign Investors
+0
+0
+0
+0.00
+0.00
+0
+0
+0.00
+0.00
+59440
+Any other (specify)
+1234259
+25798
+1260057
+0.05
+Foreign Bank
+UTI
+0
+1504
+1232755
+0
+0
+2(87)(ii)
+100.00
+Subsidiary
+N.A.
+Spain
+Laboratorios Ranbaxy S.L.U.
+71
+0
+47453661
+1.97 37905019
+0 37905019
+0
+1.58
+f)
+Fils
+363065665
+17943
+363083608
+15.09 510632630
+17943
+510650573 21.28
+6.20
+g)
+Foreign Venture Capital
+-0.39
+23918
+1880
+25422
+0.00
+Overseas
+b)
+Individuals
+i)
+Individual shareholders holding
+132022880 11922649 143945529
+112958510 11797649 124756159
+5.98
+5.18
+157930128 11143588 169073716 7.05
+128188202 11018588 139206790 5.80
+1.07
+0.62
+nominal share capital upto
+ii)
+* 1 Lakh
+Individual shareholders holding
+19064370 125000 19189370
+0.80
+29741926 125000 29866926 1.24
+0.45
+nominal share capital in excess
+of 1 Lakh
+42
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+ii)
+i) Indian
+1.13
+91079824 3.80
+Sub total (B) (1)
+576191847
+2548741
+1234635
+578740588
+0.05
+24.05
+1996426
+1504 23918
+1994922 1880
+800915953 2548741
+25798
+2022224
+0.08
+0.03
+25422
+0.00
+0.00
+1996802 0.08
+0.03
+803464694 33.49
+9.44
+210
+2)
+Non-Institutions
+a)
+Bodies Corporate
+63853210 206057 64059267
+2.66
+90895027 184797
+FINANCIAL STATEMENTS 80-278
+0
+Shareholding at the beginning of the year
+0.00
+0.0 194820971
+(522789)
+8.1
+8.1 195343760
+195343760
+8.4
+200846362
+8.4
+8.4
+0.0 200846362
+(538958)
+8.1
+8.4 201385320
+Quality Investments Pvt. Ltd. At the beginning of the year
+At the end of the year
+Decrease due to surrender of equity
+shares pursuant to Buyback of
+equity shares by the Company on
+October 18, 2016
+4
+Date wise Increase /
+Decrease in Share holding
+At the beginning of the year
+Family Investment Private
+Limited
+3
+At the end of the year
+Decrease due to surrender of equity
+shares pursuant to Buyback of
+equity shares by the Company on
+October 18, 2016
+Date wise Increase /
+Decrease in Share holding
+201385320
+At the beginning of the year
+194820971
+182927440
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+7.6
+182379237
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+At the end of the year
+7.6
+0.0 182379237
+(489403)
+Decrease due to surrender of equity
+shares pursuant to Buyback of
+equity shares by the Company on
+October 18, 2016
+Date wise Increase /
+Decrease in Share holding
+7.6
+8.1
+182868640
+182868640
+7.6
+182437880
+-
+7.6
+182437880
+0.0
+(489560)
+7.6
+182927440
+7.6
+7.6
+08-79
+Tejaskiran Pharmachem
+Industries Private Limited
+At the end of the year
+No. of shares Shares of the No. of shares Shares of the
+Company
+% of total
+Cumulative Shareholding
+during the year
+Shareholding at the
+beginning of the year
+% of total
+Sr.
+no
+iii) Change in Promoter's Shareholding (please specify, if there is no change)
+PHARMA
+SUN
+43
+72
+ANNUAL REPORT 2016-17
+1
+0
+9.6
+230285690
+0
+0.0
+Note: There has been change in the number of shares due to surrender of equity shares pursuant to Buyback of equity shares by the Company on
+October 18, 2016.
+9.6
+231140480
+Dilip S. Shanghvi
+1
+to total
+% of Shares
+Pledged/
+encumbered during the year
+shares
+2
+Dilip S. Shanghvi
+At the beginning of the year
+Decrease of 854790 equity shares
+Decrease in Share holding of due to surrender of equity shares
+equity shares
+Decrease due to surrender of equity
+shares pursuant to Buyback of
+equity shares by the Company on
+October 18, 2016
+Date wise Increase /
+Decrease in Share holding
+At the beginning of the year
+Viditi Investment Private
+Limited
+1
+44
+No. of shares Shares of the No. of shares Shares of the
+Company
+Company
+Cumulative Shareholding
+during the year
+% of total
+% of total
+Shareholding at the
+beginning of the year
+For Each of the top 10
+shareholders
+Date wise Increase /
+no
+iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
+9.6
+9.6
+9.6
+230285690
+231140480
+230285690
+9.6
+0.0
+Company
+Company on October 18, 2016
+At the end of the year
+in Buyback of equity shares by the
+231140480
+(854790)
+Sr.
+FINANCIAL STATEMENTS 80-278
+Sr.
+For Each of the top 10
+0.16
+0.01
+1068524406 15057900 1083582306
+20.98 279237075 11703665 290940740
+45.03 1080153028 14252406 1094405434
+12.13 -8.85
+45.62
+0.59
+C
+Shares held by Custodian for
+GDRs & ADRs
+0
+0
+3812406
+0
+0
+0
+0
+0.00
+0.00
+123381
+0
+123381
+0.01
+30366
+0
+0.00
+30366
+0
+0.15
+59440
+0
+59440
+0.00
+0.00
+x)
+ix) Foreign Nationals
+Hindu Undivided Family
+31042
+0
+31042
+3812406
+0.00
+0
+23000
+0.00
+0.00
+3567736
+0
+Sub total (B) (2)
+Total Public shareholding Public
+Group (B)= (B)(1)+(B)(2)
+492332559 12509159
+3567736
+504841718
+23000
+0.00
+0.00
+Employee Benefit Trust under
+SEBI(Share based employee
+benefit)Regulations, 2014
+96851821
+4.0
+96851821
+0.0
+(252219)
+4.0
+97104040
+4.0
+97104040
+Company
+No. of shares Shares of the No. of shares Shares of the
+Company
+4.0
+% of total
+Cumulative Shareholding
+during the year
+Shareholding at the
+beginning of the year
+At the end of the year
+Decrease due to surrender of equity
+shares pursuant to Buyback of
+equity shares by the Company on
+October 18, 2016
+At the beginning of the year
+Date wise Increase /
+Decrease in Share holding
+Private Limited
+Virtuous Finance
+5
+shareholders
+no
+% of total
+6
+Life Insurance Corporation
+of India
+At the beginning of the year
+GRAND TOTAL (A)+(B)+(C)
+2391658599 15069900 2406728499
+100.00 2385026775 14264406 2399291181 100.00
+0.00
+Note: Change during the year in Shareholding of Promoter*, is due to Buyback of equity shares and re-classification of certain persons from Promoter Group
+Category to Public Category vide receipt of approval from the National Stock Exchange of India Limited on October 7, 2016 and BSE Limited on
+October 10, 2016, under Regulation 31A(7) of SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015.
+*includes Promoter Group
+ii) Shareholding of Promoter as on March 31, 2017
+Sr
+Shareholder's
+Share holding at the end of the year
+No. Name
+No. of Shares
+% of total
+Shares of the
+Company
+%of Shares No. of Shares
+Pledged/
+encumbered to
+total shares
+% of total
+Shares of the
+Company
+% change in
+shareholding
+3.8
+89929151
+0.9
+21050467
+Various dates during the year*
+Date wise Increase /
+Decrease in Share holding
+2.9
+68878684
+2.9
+68878684
+59440
+AO Ranbaxy (Formerly known as ZAO
+N.A.
+N.A.
+42.11
+12000 1010378094
+42.09 1010366094
+1013024000
+12000
+1013012000
+Bodies Corporate
+c)
+47453661
+Government
+0.00
+0.02
+0.00
+0
+0
+0.00
+0
+0
+0
+Central Government/ State
+b)
+-0.61
+12.22
+0 293200513
+0
+293200513
+d)
+0
+54.39
+12000 1304855381
+54.97 1304843381
+12000 1323022812
+1323010812
+Sub total (A) (1)
+0.00
+0.05
+1276774
+0
+1276774
+Financial Institutions/ Bank
+0.00
+0
+0
+0
+0.00
+0.05
+1280200
+0
+1280200
+Any other (Trusts)
+e)
+0
+0
+0.00
+-0.59
+12.83
+0
+Associate
+N.A.
+USA
+116 MSD - Sun LLC
+2(6)
+45.00
+Associate
+N.A.
+Germany
+115 Artes Biotechnology GmbH
+2(6)
+50.00
+50.00
+N.A.
+USA
+114 S&I Ophthalmic LLC
+2(6)
+28.76
+Associate
+AAE-7937
+India
+113 Generic Solar Power LLP
+2(6)
+14.58
+Associate
+308718612
+2(6)
+41
+308718612
+Individual/HUF
+a)
+Indian
+1)
+Promoter*
+A
+Total during
+Shares the year
+Total
+Physical
+Demat
+ANNUAL REPORT 2016-17
+% of Total
+Shares
+Physical
+Demat
+%
+% of Change
+No. of Shares held at the end of the year
+No. of Shares held at the beginning of the year
+Category of Shareholders
+Category-wise shareholding
+i)
+IV SHARE HOLDING PATTERN (EQUITY SHARE BREAKUP AS PERCENTAGE OF TOTAL EQUITY)
+PHARMA
+SUN
+Total
+2)
+Foreign
+a)
+4218
+92231531
+b) Financial Institutions/ Bank
+72206731 2500782
+Mutual Funds
+a)
+Institutions
+1)
+Public Shareholding
+B
+(A)=(A)(1)+(A)(2)
+74707513
+92235749
+54.39 -0.59
+54.97 1304843381
+12000 1323022812
+1323010812
+Total shareholding of Promoter*
+0.00
+0.00
+0
+0
+0
+0.00
+0
+12000 1304855381
+0
+3.10 126058474 2500782
+3.83 124323024
+2.25
+0.00
+0.00
+0
+0
+0
+0.00
+0
+0
+0
+d) Venture Capital Funds
+0.00
+128559256 5.36
+0.00
+0
+380
+0.00
+0
+0
+Central Government/State
+Government
+c)
+1.35
+5.18
+124327242
+4218
+380
+0
+Sub total (A) (2)
+0.00
+0
+Bodies Corporate
+c)
+0.00
+0.00
+0
+0
+0
+0.00
+0
+0
+0
+0
+b)
+0.00
+0.00
+0
+0
+0
+0.00
+0
+0
+0
+Individuals (NRIs)
+Other Individuals
+0
+0.00
+0
+0.00
+0
+0
+0
+0.00
+0
+0
+0
+Any other
+e)
+0.00
+0.00
+0
+0
+0
+0.00
+0
+0
+0
+Financial Institutions/ Bank
+d)
+0.00
+0.00
+0
+0
+Associate
+N.A.
+USA
+112 SC Pharmaceuticals Inc.
+N.A.
+Morocco
+Sun Pharmaceuticals Morocco LLC
+86
+2(87)(ii)
+Subsidiary 100.00
+N.A.
+Ireland
+Ranbaxy Ireland Limited
+85
+as Ranbaxy Australia Pty Limited)
+Subsidiary
+2(87)(ii)
+N.A.
+Australia
+Sun Pharma ANZ Pty Ltd (Formerly known
+84
+2(87)(ii)
+Subsidiary 100.00
+N.A.
+United Kingdom
+Ranbaxy (U.K.) Limited
+83
+2(87)(ii)
+Subsidiary 100.00
+Subsidiary 100.00
+100.00
+(Formerly known as Ranbaxy Morrocco
+No
+Holding/
+Subsidiary/
+CIN/GLN
+Name of the Company
+Address of the
+Sr.
+FINANCIAL STATEMENTS 80-278
+08-79
+01-07 STATUTORY REPORTS
+CORPORATE OVERVIEW
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+2(87)(ii)
+40
+N.A.
+Germany
+Basics GmbH
+88
+2(87)(ii)
+Subsidiary 100.00
+N.A.
+Canada
+Ranbaxy Pharmaceuticals Canada Inc.
+87
+LLC)
+Subsidiary 100.00 2(87)(ii)
+N.A.
+Italy
+Ranbaxy Italia S.P.A.
+N.A.
+United Kingdom
+Ranbaxy Holdings (UK) Limited
+76
+Subsidiary
+N.A.
+South Africa
+Ranbaxy South Africa Proprietary Limited
+75
+Subsidiary
+N.A.
+77
+South Africa
+74
+2(87)(ii)
+100.00
+Subsidiary
+N.A.
+Ukrain
+"Ranbaxy Pharmaceuticals Ukraine❞LLC
+73
+Ranbaxy)
+2(87)(ii)
+Subsidiary 100.00
+Ranbaxy Pharmaceuticals (Pty) Ltd.
+Ranbaxy Farmaceutica Ltda.
+Brazil
+N.A.
+82
+2(87)(ii)
+Subsidiary 100.00
+N.A.
+Egypt
+Ranbaxy Egypt Limited
+81
+S.A.C.)
+(Formerly known as Ranbaxy-PRP (Peru)
+2(87)(ii)
+100.00 2(87)(ii)
+100.00 2(87)(ii)
+Subsidiary
+Subsidiary
+N.A.
+Peru
+Sun Pharmaceutical Industries S.A.C.
+80
+N.A.
+Poland
+Ranbaxy (Poland) Sp.z.o.o.
+79
+Subsidiary 100.00
+N.A.
+Thailand
+Ranbaxy (Thailand) Co. Ltd.
+78
+100.00 2(87)(ii)
+100.00 2(87)(ii)
+Subsidiary 100.00 2(87)(ii)
+Subsidiary 100.00 2(87)(ii)
+Company
+Russia
+% of
+shares held Section
+89
+India
+India
+106 Sun Pharmaceutical Medicare Limited
+107 Trumpcard Advisors and Finvest LLP
+108 Zenotech Laboratories Limited
+N.A.
+USA
+105 Sun Pharmaceuticals Holdings USA, Inc
+N.A.
+Switzerland
+104 Ocular Technologies SARL
+N.A.
+Russia
+India
+103 JSC Biosintez
+USA
+102 2 Independence Way LLC
+(Formerly known as Solrex Pharmaceuticals
+Company, Partnership firm)
+Subsidiary 100.00 2(87)(ii)
+U36996GJ2016PTC093861 Subsidiary 100.00 2(87)(ii)
+India
+101 Sun Pharma Medisales Private Limited
+N.A.
+Egypt
+100 Rexcel Egypt LLC
+100.00 2(87)(ii)
+Subsidiary
+N.A.
+N.A.
+Subsidiary 100.00
+Subsidiary 85.10 2(87)(ii)
+100.00 2(87)(ii)
+100.00 2(87)(ii)
+U36900GJ2017PLC095132 Subsidiary 100.00 2(87)(ii)
+AAH-6275
+L27100AP1989PLC010122
+Subsidiary
+2(6)
+7.75
+Associate
+N.A.
+USA
+111 Versant Venture Capital V, L.P.
+2(6)
+6.83
+Associate
+N.A.
+USA
+2(87)(ii)
+110 Fraizer Healthcare VII, L.P.
+19.99
+Associate
+7
+USA
+109 Medinstill LLC
+2(6)
+46.84
+2(6)
+40.61
+Associate
+Associate
+Subsidiary
+2(6)
+United Kingdom
+Insite Vision Limited
+99
+Subsidiary
+N.A.
+United Kingdom
+Ranbaxy Europe Limited
+93
+2(87)(ii)
+2(87)(ii)
+100.00 2(87)(ii)
+Subsidiary 100.00 2(87)(ii)
+Subsidiary 70.00
+Subsidiary 100.00
+N.A.
+USA
+Ranbaxy Inc.
+100.00
+92
+South Africa
+Sonke Pharmaceuticals Pty Limited
+91
+N.A.
+South Africa
+Be-Tabs Invesments Proprietary Limited
+90
+Associate
+Subsidiary
+N.A.
+Germany
+Ranbaxy GmbH
+e)
+2(87)(ii)
+94 Ranbaxy Laboratories Inc.
+USA
+100.00 2(87)(ii)
+Subsidiary
+N.A.
+USA
+Insite Vision Incorporated
+98
+100.00 2(87)(ii)
+67.50 2(87)(ii)
+Subsidiary
+N.A.
+USA
+Ranbaxy Signature LLC
+97
+Subsidiary
+N.A.
+USA
+Ohm Laboratories Inc.
+96
+Subsidiary 100.00 2(87)(ii)
+N.A.
+USA
+Ranbaxy Pharmaceuticals Inc.
+95
+100.00 2(87)(ii)
+Subsidiary
+N.A.
+Applicable
+Virtuous Share Investments
+Private Limited
+N.A.
+83976000
+0.0
+At the beginning of the year
+0
+0.0
+0
+0.0
+0
+0.0
+10
+Rekha Sethi
+At the beginning of the year
+At the end of the year
+0
+0.0
+0
+0.0
+0
+0.0
+11
+Uday Baldota
+12
+Sunil R. Ajmera
+43270
+At the end of the year
+At the end of the year
+Ashwin S. Dani
+0
+0.0
+At the end of the year
+0
+0.0
+7
+Hasmukh S. Shah
+At the beginning of the year
+0
+0.0
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+0
+At the end of the year
+0.0
+8
+Keki M. Mistry
+At the beginning of the year
+43270
+0.0
+43270
+0.0
+9
+0.0
+0.0
+22700
+22700
+2637.8
+55650.6
+132.3
+58420.7
+iii) Interest accrued but not due (1)
+4.9
+Total (i+ii+iii)
+2642.7
+91.8
+55742.4
+132.3
+96.8
+58517.4
+Change in Indebtedness during the financial year:
+Addition: Principal Amount (3)
+180.9
+52696.4
+3.0
+52880.3
+Reduction: Principal Amount (3)/(4)
+2512.4
+48187.1
+50699.5
+ii) Interest due but not paid
+i) Principal Amount
+Indebtedness at the beginning of the financial year:
+deposits
+0.0
+22700
+0.0
+0
+0.0
+0
+0.0
+At the end of the year
+0.0
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+0.0
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+FINANCIAL STATEMENTS 80-278
+V) INDEBTEDNESS
+Indebtedness of the Company including interest outstanding/accrued but not due for payment
+* in Million
+Secured Loans
+excluding
+Unsecured
+Total
+Deposits (2)
+Loans
+Indebtedness
+08-79
+Change: Interest accrued but not due (1)
+(16)
+0.0
+Subsidiary
+U51900MH2006PTC158889 Subsidiary 100.00 2(87)(ii)
+U24232GJ1984PLC095288 Subsidiary 100.00 2(87)(ii)
+U67120GJ1988PLC095186 Subsidiary 100.00 2(87)(ii)
+U24231GJ1983PLC006323 Subsidiary 100.00 2(87)(ii)
+N.A.
+Subsidiary 71.22 2(87)(ii)
+100.00 2(87)(ii)
+85.31 2(87)(ii)
+100.00 2(87)(ii)
+N.A.
+France
+Ranbaxy Pharmacie Generiques
+21
+N.A.
+Nigeria
+Ranbaxy Nigeria Limited
+20
+N.A.
+Netherlands
+Ranbaxy (Netherlands) B.V.
+19
+Malasiya
+Ranbaxy (Malasiya) SDN. BHD.
+18
+India
+Gufic Pharma Limited
+17
+India
+Subsidiary
+Subsidiary
+22
+Sun Pharmaceutical Industries, Inc.
+N.A.
+France
+Office Pharmaceutique Industriel Et
+Hospitalier
+2(87)(ii)
+Subsidiary 100.00
+N.A
+India
+Universal Enterprises Private Limited
+Control of India
+2(87)(ii)
+Vidyut Investments Limited
+N.A.
+Subsidiary 100.00 2(87)(ii)
+U85190MH2016NPL286097 Subsidiary 100.00
+Foundation for Disease Elimination and
+24
+Brazil
+Sun Farmaceutica do Brasil Ltda.
+23
+22 22 22235
+100.00 2(87)(ii)
+Subsidiary
+N.A.
+USA
+India
+Transferred as per Partition Deed of HUF on
+20.12.2016
+16
+Ranbaxy Drugs Limited
+Address of the
+Sr.
+FINANCIAL STATEMENTS 80-278
+08-79
+01-07 STATUTORY REPORTS
+CORPORATE OVERVIEW
+becoming Director
+Sold in March, 2017
+(37)
+0.0
+0
+0.0
+At the end of the year
+0
+0.0
+6
+S. Mohanchand Dadha
+At the beginning of the year
+16
+0.0
+16
+Name of the Company
+CIN/GLN
+No
+Company
+15
+India
+Realstone Multitrade Private Limited
+14
+Limited
+100.00 2(87)(ii)
+100.00 2(87)(ii)
+100.00 2(87)(ii)
+100.00 2(87)(ii)
+Applicable
+% of
+shares held Section
+Holding/
+Subsidiary/
+Associate
+U45200MH2010PTC201611 Subsidiary
+U73100MH2005PTC150606 Subsidiary
+U51900MH2006PTC159237 Subsidiary
+U51900MH2006PTC159266 Subsidiary
+India
+India
+13
+India
+Softdeal Trading Company Private Limited
+12
+India
+Skisen Labs Private Limited
+11
+India
+Neetnav Real Estate Private Limited
+10
+Faststone Mercantile Company Private
+1.9
+(28.7)
+(26.8)
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+Total (1)
+1600000
+1300000
+1700000
+1700000
+1000000
+0
+7300000
+2
+Other Non-Executive
+Directors
+0
+· Others, please specify
+.
+0
+Name of Directors
+no.
+Mr. S
+Mr. Keki Ms. Rekha Mr. Hasmukh
+Mistry
+Sethi
+Shah
+Mohanchand
+Dadha
+Mr. Ashwin
+Dani
+Mr. Israel
+Total
+Amount
+Makov
+0
+Independent Directors
+⚫ Fee for attending board
+1600000
+1300000
+1700000
+1700000
+1000000
+0
+7300000
+committee meetings
+⚫ Commission
+1
+Particulars of Remuneration
+0
+0
+0
+0
+0
+Total (2)
+0
+0
+0
+0
+0
+1000000
+1000000
+Total (B)=(1+2)
+1600000
+1300000
+1700000
+1700000
+1000000
+1000000
+8300000
+48
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+0
+0
+0
+0
+0
+1000000
+1000000
+⚫ Fee for attending board
+0
+0
+0
+0
+0
+0
+0
+0
+.
+Commission
+0
+0
+0
+0
+0
+0
+0
+⚫ Others, please specify
+committee meetings
+Sr.
+Amount in
+Remuneration to other directors for the year ended March 31, 2017:
+(The remuneration to Non-Executive Directors consists only of sitting fees)
+Particulars of Remuneration
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Mr. Sailesh T Desai
+Amount in
+Total
+no.
+1
+Gross salary
+(a) Salary as per provisions
+contained in section 17(1) of
+the Income-tax Act, 1961
+28005000
+28005000
+11597393
+67607393
+(b) Value of perquisites u/s
+440281
+219690
+39600
+699571
+17(2) of the Income tax Act,
+1961
+Sr.
+Remuneration to Managing Director, Whole-time Directors and/or Manager for the year ended March 31, 2017
+(As per Form 16, on actual payment basis)
+A)
+VI) REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
+Net Change
+(2329.6)
+4480.5
+3.0
+2154.0
+Indebtedness at the end of the financial year:
+i) Principal Amount
+ii) Interest due but not paid
+306.3
+60159.8
+(c) Profits in lieu of salary under
+135.3
+iii) Interest accrued but not due (1)
+Total (i+ii+iii)
+Notes:
+6.8
+313.2
+63.1
+60222.9
+69.9
+135.3
+60671.4
+(1) Interest accrued but not due on borrowings. The change during the year has been shown on net basis.
+(2) Deposits are Trade/ Security Deposits Received. The change during the year has been shown on net basis.
+(3) Change in the Working Capital facility viz. Cash Credit and Over Draft forming part of Secured & Unsecured loans, have been shown on net basis.
+(4) Ind AS adjustment in the outstanding as on March 31, 2017 of External Commercial Borrowings & Commercial Papers are shown as reduction in
+principal amount.
+60601.4
+0
+0
+0
+no.
+4
+Commission as a % of profit
+0
+0
+0
+0
+5
+Others, please specify
+0
+Total
+0
+0
+Total (A)(1)
+28445281
+28224690
+11636993(1)
+68306964
+(1) Remuneration include bonus of 2015-2016 paid in 2016-2017
+Ceiling as per the Act
+B)
+* 3.04 Crores as computed as per Part-A, Section II of Schedule V of the Companies Act, 2013
+read with MCA circular dated September 12, 2016, based on the effective capital of the last
+day of financial year preceding the financial year of the respective year of appointment of the
+Managing Director and Whole-time Directors in view of absence of profits for 2016-17.
+Pursuant to the approval of the Shareholders at the 22nd Annual General Meeting (AGM), the
+Company had applied to the Central Government under Section 197(3) read with Schedule V
+of the Companies Act, 2013 for approval of maximum limit of remuneration as approved by
+members for a period of three years with effect from April 1, 2014 to March 31, 2017.
+Further at the 24th AGM, the members' approval was also obtained for revision in the remuneration
+of the Managing Director and the Whole-time Directors from April 1, 2016 for the remaining
+period of their respective current term of appointment upto March 31, 2018 / March 31, 2019,
+as applicable. Consequently during the year, an application/representation for revision in the
+remuneration of the Managing Director and a Whole-time Director, from April 1, 2016 for the
+remaining period of their respective current term of appointment upto March 31, 2018 / March 31,
+2019, as applicable, has been made by the Company to the Ministry of Corporate Affairs (MCA).
+However, the approval granted by the Central Government was for 60,00,000 (Rupees Sixty
+Lakhs only) per annum for a period of three years with effect from April 1, 2014 to March
+31, 2017. The Company has made further representation, to the Central Government for
+reconsidering the approval on additional grounds for which the response from the MCA is
+awaited.
+Further the approval in respect of the foregoing re-representation and application for revision
+in remuneration from April 1, 2016 for the remaining period of their respective current term of
+appointment upto March 31, 2018 March 31, 2019, is also awaited from the MCA. In view of
+the approval for application of revision in remuneration being awaited, for the year 2016-2017,
+the Company has paid remuneration within the ceiling limit as mentioned above to the Managing
+Director and Whole-time Director(s). On receipt of the approval from the Central Government of
+India, the balance amount of remuneration for the year 2016-17, if any, as per their entitlement,
+shall be paid to the Managing Director and Whole-time Director(s), as applicable, and the same
+shall be given effect to in the year in which the approval is received. Excess remuneration, if any,
+after final approval in respect of the application for revision is received, shall be refunded by the
+respective Managing Director and Whole-time Directors.
+0
+Subsidiary 100.00
+Mr. Sailesh T Desai
+Mr. Dilip S. Shanghvi
+section 17(3) Income-tax Act,
+At the beginning of the year
+1961
+2
+Stock Option
+0
+0
+0
+0
+3
+Mr. Sudhir V. Valia
+Sweat Equity
+0
+0
+0
+ANNUAL REPORT 2016-17
+47
+SUN
+PHARMA
+Amount in
+Sr.
+Particulars of Remuneration
+0
+2(87)(ii)
+Insurance Companies
+Sun Pharma Global (FZE)
+USA
+Taro Pharmaceutical Laboratories Inc.
+65
+2(87)(ii)
+Subsidiary 72.81
+N.A.
+USA
+One Commerce Drive LLC
+64
+2(87)(ii)
+72.81
+Subsidiary
+N.A.
+USA
+3 Skyline LLC
+63
+2(87)(ii)
+72.81
+Subsidiary
+N.A.
+Canada
+Taro Pharmaceuticals Inc.
+62
+2(87)(ii)
+72.81
+N.A.
+Netherlands
+Taro Pharmaceuticals Europe B.V.
+61
+N.A.
+2(87)(ii)
+Subsidiary
+2(87)(ii)
+At the end of the year
+Decrease due to surrender of equity
+shares pursuant to Buyback of
+equity shares by the Company on
+October 18, 2016
+Date wise Increase /
+Decrease in Share holding
+Raksha S.Valia
+Government of Singapore
+Date wise Increase /
+Decrease in Share holding
+Aditya Medisales Limited
+Date wise Increase /
+Decrease in Share holding
+10
+9
+8
+3.5
+83751259
+0.0
+(224741)
+Date wise Increase /
+Decrease in Share holding
+85
+3.5
+3.8
+89929151
+3.5 83976000
+U51397MH2004PTC144179
+India
+Taro Pharmaceuticals India Private Limited
+67
+2(87)(ii)
+72.81
+Subsidiary
+N.A.
+United Kingdom
+Taro Pharmaceuticals (UK) Limited
+66
+72.81
+At the beginning of the year
+72.81
+N.A.
+N.A.
+Israel
+Aditya Acquisition Company Limited
+55
+100.00 2(87)(ii)
+Subsidiary
+N.A.
+Italy
+Sun Pharmaceuticals Italia S.R.L.
+54
+2(87)(ii)
+100.00 2(87)(ii)
+100.00
+Subsidiary
+N.A.
+Germany
+Sun Pharmaceuticals Germany GmbH
+53
+Subsidiary
+N.A.
+Netherlands
+Sun Pharmaceutical Industries (Europe) B.V.
+52
+Subsidiary 100.00 2(87)(ii)
+N.A.
+France
+Sun Pharmaceuticals France
+51
+2(87)(ii)
+100.00
+Subsidiary
+Subsidiary
+100.00 2(87)(ii)
+Alkaloida Sweden AB
+Israel
+Taro International Limited
+60
+2(87)(ii)
+72.81
+Subsidiary
+N.A.
+USA
+Taro Pharmaceuticals U.S.A., Inc.
+59
+Indies
+British West
+2(87)(ii)
+72.81
+Subsidiary
+N.A.
+Cayman Islands,
+Taro Pharmaceuticals North America, Inc.
+58
+100.00 2(87)(ii)
+Subsidiary
+N.A.
+Switzerland
+Sun Pharma Switzerland Ltd.
+57
+100.00 2(87)(ii)
+Subsidiary
+N.A.
+Sweden
+56
+Section
+Decrease due to surrender of equity
+shares pursuant to Buyback of
+equity shares by the Company on
+October 18, 2016
+At the beginning of the year
+Various dates during the
+year*
+At the end of the year
+0.2
+3740747
+0.0
+(10273)
+Decrease due to surrender of equity shares
+pursuant to Buyback of equity shares by the
+Company on October 18, 2016
+0.2
+3751020
+0.2
+3751020
+At the beginning of the year
+Sailesh T. Desai
+4
+0.6
+14345019
+At the end of the year
+0.60
+0.6
+0.6 14384000
+14345019
+0.0
+(38981)
+Decrease due to surrender of equity shares
+pursuant to Buyback of equity shares by the
+Company on October 18, 2016
+14384000
+At the beginning of the year
+Sudhir V. Valia
+3
+9.6
+230285690
+At the end of the year
+3740747
+9.6
+0.2
+Kalyanasundaram
+Subramanian
+27
+72.81
+2(87)(ii)
+68
+Taro Pharmaceuticals Ireland Limited
+Ireland
+N.A.
+Subsidiary
+72.81
+2(87)(ii)
+69
+Taro Pharmaceuticals Canada Ltd.
+Canada
+N.A.
+Subsidiary
+72.81
+2(87)(ii)
+70
+S. C "Terapia" S.A.
+Romania
+N.A.
+Subsidiary
+96.70
+2(87)(ii)
+0.0
+37
+0.0
+37
+Shares held as on 14.02.2017 the date of
+5
+At the end of the year
+0.0 230285690
+9.6 231140480
+At the beginning of the year
+1.4
+1.4
+1.4 33922000
+33830352
+0.0
+(91648)
+Decrease due to surrender of equity
+shares pursuant to Buyback of
+equity shares by the Company on
+October 18, 2016
+33922000
+1.5
+35611477
+1.5
+35611477
+1.7
+39779172
+1.7
+0.2
+39779172
+4167695
+1.7
+40153960
+1.7
+40153960
+0.0
+(50000)
+1.7
+40203960
+1.7
+40203960
+3.5
+83751259
+At the end of the year
+At the end of the year
+9.6
+*The trading has taken place on various dates, therefore the change has been shown on consolidated basis.
+1.4
+231140480
+(854790)
+0.0
+0
+0.0
+0
+0.0
+0
+of the
+Company
+Shares
+No. of % of total
+shares
+during the year
+of the
+Company
+Cumulative Shareholding
+Shareholding at the
+beginning of the year
+No. of % of total
+shares
+Shares
+At the beginning of the year
+Decrease due to surrender of equity shares
+pursuant to Buyback of equity shares by the
+Company on October 18, 2016
+Subsidiary
+At the beginning of the year
+At the end of the year
+Dilip S. Shanghvi
+2
+Israel Makov
+1
+no
+46
+Sr. Name of Director / KMP
+V) SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL: (HELD SINGLY OR JOINTLY AS
+FIRST HOLDER)
+PHARMA
+SUN
+45
+ANNUAL REPORT 2016-17
+33830352
+Applicable
+Subsidiary
+Subsidiary 100.00
+Subsidiary
+100.00
+2(87)(ii)
+43 Chattem Chemicals, Inc.
+USA
+N.A.
+Subsidiary 100.00
+2(87)(ii)
+44
+Mutual Pharmaceutical Company, Inc.
+USA
+N.A.
+Subsidiary 100.00
+2(87)(ii)
+45
+N.A.
+USA
+DUSA Pharmaceuticals, Inc.
+42
+India
+100.00
+N.A.
+100.00 2(87)(ii)
+U24100MH2012FTC225970 Subsidiary 100.00 2(87)(ii)
+Subsidiary
+2(87)(ii)
+Subsidiary
+40
+Pharmalucence, Inc.
+PI Real Estate Ventures, LLC
+USA
+Subsidiary
+41
+The Taro Development Corporation
+USA
+N.A.
+Subsidiary
+100.00 2(87)(ii)
+100.00 2(87)(ii)
+N.A.
+N.A.
+Subsidiary
+100.00 2(87)(ii)
+ANNUAL REPORT 2016-17
+39
+SUN
+PHARMA
+Sr.
+Name of the Company
+No
+Subsidiary 100.00 2(87)(ii)
+Subsidiary 72.81 2(87)(ii)
+Address of the
+Company
+50
+Sun Pharmaceuticals UK Limited
+United Kingdom
+N.A.
+Holding/
+Subsidiary/
+Associate
+Subsidiary
+% of
+shares held
+UAE
+CIN/GLN
+Caraco Pharmaceuticals Private Limited
+N.A.
+Taro Pharmaceutical Industries Ltd.
+46
+Morley & Company, Inc.
+USA
+N.A.
+Subsidiary
+47
+URL PharmPro, LLC
+Israel
+USA
+Subsidiary 100.00
+100.00 2(87)(ii)
+2(87)(ii)
+48
+Dungan Mutual Associates, LLC
+USA
+N.A.
+49
+N.A.
+39
+USA
+Sun Pharma East Africa Limited
+Sun Global Development (FZE)
+32
+Pty Ltd.
+100.00 2(87)(ii)
+Subsidiary
+N.A.
+Australia
+31 Sun Pharmaceutical Industries (Australia)
+2(87)(ii)
+99.99
+Subsidiary
+N.A.
+Hungary
+ALKALOIDA Chemical Company Zrt.
+UAE
+30
+Subsidiary
+N.A.
+29 Sun Laboratories (FZE)
+100.00 2(87)(ii)
+Subsidiary
+N.A.
+South Africa
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+28
+2(87)(ii)
+100.00
+Subsidiary
+N.A.
+Kenya
+100.00 2(87)(ii)
+N.A.
+UAE
+100.00 2(87)(ii)
+38
+Subsidiary
+N.A.
+Japan
+Sun Pharma Japan Ltd.
+37
+2(87)(ii)
+UAE
+Sun Pharma Healthcare (FZE)
+36
+2(87)(ii)
+Subsidiary 100.00
+N.A.
+Philippines
+Sun Pharma Philippines, Inc.
+N.A.
+2(87)(ii)
+Sun Pharmaceuticals Korea Ltd.
+33
+35
+South Korea
+N.A.
+100.00
+Subsidiary
+34
+Sun Global Canada Pty. Ltd.
+Canada
+N.A.
+Subsidiary 100.00
+2(87)(ii)
+► Promote awareness on HIV/AIDS
+▸ Reduction of infant and maternal mortality rate
+Member - CSR Committee and
+Whole-Time Director
+The projects is being implemented by the partner organisation
+Sun Pharma Community Healthcare Society and HelpAge-
+India, the main objective of the project is
+As its flagship project, Sun Pharma has fully aligned with
+Government of India's 'National Health Mission' mechanism
+for reaching out to rural and remote areas through its Mobile
+Medical Unit (MMU). It is primary healthcare project that
+delivers free doorstep health facilities for the marginalised
+and financially backward section of the society. A full-time
+committed health van, visits the selected nodal locations
+at a regular frequency. It is manned by a dedicated team
+of qualified experienced doctor, pharmacist and special
+protection officer, who provide medical check-ups, medicines,
+expert counselling and referral services for free.
+Mobile Medical Unit Programme
+▸ Improve health of adolescent girls
+In order to strengthen the health, both physical and mental,
+of all individuals in the targeted areas Sun Pharma has
+undertaken various initiatives in FY17 and made investment of
+*15.1 Million on health projects.
+SUDHIR V. VALIA
+1.
+CSR Committee
+and Managing Director
+Chairman
+DILIP S. SHANGHVI
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+54
+At Sun Pharma, our social responsibility programmes mainly
+focussed upon Health, Education, Drinking water, Environment and
+Rural Development Projects, which are designed to improve the
+quality of life of the people.
+Sun Pharma CSR policy emphasizes on striving to bring about the
+holistic development of underserved communities in a sustainable
+and impactful manner.
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+Vision:
+Health Projects
+08-79
+Sun Pharma has also created critical awareness about
+sanitation schemes, best hygienic practices in 7 villages near to
+their Ahmednagar, Panoli, Madurantakam and Halol plants to
+build up their interest towards sanitation.
+2.
+There was an investment of 0.79 Million and it benefited 73
+households of Ahmednagar, Panoli and Madurantakam and
+Halol Taluka in the current fiscal.
+All our CSR endeavours originate from our all-around enunciated
+Corporate Social Responsibility (CSR) Policy and our CSR program
+aims to address the immediate and long term needs of the
+community and focus on where we can have the biggest impact. We
+regularly listen to subject matter experts and gather feedback from
+all stakeholders.
+Green Belt Development
+▶To conduct intensive Information, Education and
+Communication (IEC) campaign about sanitation with the
+involvement of PRIs, Co-operatives, ASHAs, Anganwadi
+workers, Women Groups, Self Help Groups, NGOs etc.
+5.
+4.
+▸ To construct toilets for the community and thereby provide
+100% coverage in villages.
+This programme is implemented by the CSR Department and
+Implementing agency GVT-Dahod, the aim of this programme
+was two-pronged:
+With the aim to contribute the Indian government's 2019
+goal of "Swachha Bharat" and to change the socio economic
+situation of communities, the Company has decided to make
+villages free from open defecation practices; Sun Pharma has
+undertaken activities to promote sanitation across different
+plant locations in India.
+Sanitation Project
+In line with the concept of MHRD's on 'model school
+development, various programmes were executed like up-
+gradation of classroom, schools and also providing proper
+drinking water facilities at rural schools to create a better
+aesthetic in schools by creating good ambience and through
+up-gradation in school infrastructure. Educational programme
+was implemented at Ahmednagar, Halol, Ankleswar,
+Madurantakam, Panoli, Silvassa, Toansa and has served 4957
+students with total investment of 3.71 Million during FY17.
+Educational Programme
+The program is operational with the objective of developing
+up-gradation in health infrastructure together with school
+drinking water to benefit the community on sustained basis
+and in priority areas. Also to ensure decent health in school,
+it is always essential to provide safe drinking water facilities
+to schools and communities. Sun Pharma team has assessed
+this problem and under CSR, tried to solve by providing
+water stations. Also executed several programmes at Halol,
+Madurantakam, Silvassa and Toansa which has benefited 8,945
+beneficiaries with an investment of 0.60 Million in FY17.
+Health infrastructure development and Drinking water
+Projects
+Healthcare
+Halol in Gujarat, Ahmednagar in Maharashtra, Mohali, Toansa
+in Punjab, Paonta Sahib in Himachal Pradesh and Dewas
+in Madhya Pradesh. The total numbers of patients treated
+were 1,14,920. In addition to this 1,09,339 people were also
+covered under promotive healthcare programme.
+In 2016-17, 15.10 Million was invested towards this program
+covering more than 100 villages across various locations -
+►Prevention & control of communicable diseases (with a
+focus on malaria, tuberculosis) and non-communicable / other
+prevalent diseases
+3.
+FINANCIAL STATEMENTS 80-278
+Sun Pharma has taken-up various CSR Projects across plant locations
+in India for sustainable development of people residing in peripheral
+areas. Our main objective is to emphasise on social process, quality
+and ensuring the sustainability, hence our implementation approach
+is strategic in nature, is more inclined towards the sustainability of
+the projects, addressing community needs, focussing poorest of the
+poor, downtrodden, and disadvantaged, BPL and weaker sections of
+society.
+5.19
+Date: May 26, 2017
+Environment
+5
+(Bharuch dsitrict, Gujarat)
+Tamilnadu) and Panoli
+(Kanchipuram district,
+Directly
+agency
+Projects or Programs
+1. Local Area or other
+2. Specify the State and
+District where projects or
+programs was undertaken
+Ahmednagar (Maharashtra),
+Madurantakam
+Amount Outlay
+Amount spent
+(Budget)
+Project or
+Programwise
+on the projects
+or programs
+(Direct
+Expenditure)
+1.42
+0.79
+Cumulative
+expenditure upto
+to the reporting
+period
+(in Million)
+Tree plantation is one of the effective remedial measures
+to control problems of air pollution and desertification,
+and further to its obvious economic benefits, it effectively
+addresses several important environmental and sustainable
+development objectives.
+Amount
+spent Directly
+or through
+implementing
+Environment
+CSR ACTIVITIES
+Conservation
+0.90
+Place: Mumbai
+For and on behalf of the Board of Directors
+Note: Please note that the overhead expenditure booked under CSR activities is Nil.
+The CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the
+Company.
+61.43
+24.09
+Grand Total:
+Pradesh), Toansa (SBS Nagar,
+Punjab) and Madurantakam
+(Kanchipuram district,
+Tamilnadu)
+Directly
+2.97
+2.97
+2.97
+Rural development Paonta (Sirmour, Himachal
+Rural Development
+6
+Programme
+Directly
+1.06
+0.92
+Panoli (Bharuch district,
+Gujarat)
+It also improves aesthetics. Keeping these in view for
+socio-ecological benefits Company has undertaken roadside
+plantation of 900 samplings at Panoli with the total cost
+involvement of 0.92 Million.
+SUN
+Rural Development
+The post dividend EPS can have strong impact on the funds of
+the Company, thus, impacting the overall operations on day-
+to-day basis and therefore, affects the profits and can impact
+the decision for dividend declaration during a particular year.
+▸ Post dividend Earning Per Share (EPS)
+If during any financial year, the Board determines that the
+profits of the Company are inadequate on standalone basis
+and/or consolidated basis, the Board may decide not to
+declare dividends for that financial year.
+▸ Adequacy of profits
+The Company should be able to repay its debt obligations
+without much difficulty over a reasonable period of time.
+The decision of dividend declaration shall be taken after
+considering the volume of such obligations and time period of
+repayment,
+▸ Obligations to creditors
+The Board will analyze the requirement of necessary funds
+considering the long term or short term projects proposed to
+be undertaken by the Company and the viability of the options
+in terms of cost of raising necessary funds from outsiders
+such as bankers, lending institutions or by issuance of debt
+securities or plough back its own funds.
+▸ Cost of borrowings
+▸ Magnitude of earnings of the Company
+Since dividend is directly linked with the availability of earning
+over the long haul, the magnitude of earnings will significantly
+impact the dividend declaration decisions of the Company.
+The efficiency with which the Company uses its capital will
+impact the decision of dividend declaration.
+▸ Return on invested capital
+In addition to the circumstances covered under point 6 above,
+the Board shall, inter alia, consider the following financial
+parameters, while taking decisions of a dividend payout during
+a particular year-
+7. THE FINANCIAL PARAMETERS THAT SHALL
+BE CONSIDERED WHILE DECLARING/
+RECOMMENDING DIVIDEND;
+The Board, while considering the decision of dividend pay-out
+or retention of a certain amount or entire profits and/or out
+of the accumulated profits of the Company, shall, as far as
+possible, consider the expectations of the major stakeholders
+including the small shareholders of the Company who
+generally expect a regular dividend payout.
+▸ Expectations of major stakeholders, including small
+shareholders
+The Board shall analyse the ongoing and prospective projects
+and strategic decisions including need for replacement of
+capital assets, expansion and modernisation etc., before
+recommending Dividend Pay-out for any financial year with
+an object to build a healthy reserve of retained earnings to
+augment long term strength and to build a pool of internally
+generated funds to provide long-term resources as well as
+resource-raising potential for the Company;
+► Prudential & Strategic requirements
+▸ Covenants with lenders/ Debenture Trustees, if any
+The decision of dividend pay-out shall also be subject to
+compliance with covenants contained in any agreement
+entered into by the Company with the Lenders/Debenture
+Trustee's, from time to time, if any.
+The Board shall examine the implication of relevant statutory
+requirements including payment of Dividend Distribution
+Tax, transfer of a certain portion of profits to Reserves etc.,
+if applicable, on the financials of the Company at the time
+of taking decision with regard to dividend declaration or
+retention of profit.
+ANNUAL REPORT 2016-17
+▸ Transfer to Reserves and other Statutory
+Requirements
+57
+PHARMA
+9.
+Dividend distribution tax or any tax deduction at source as
+required by applicable tax regulations in India, as may be
+applicable at the time of declaration of dividend shall have
+bearing on the quantum of Dividend declared by the Company.
+- Tax implications
+The Board will keep in mind any restrictions on payment of
+dividends by virtue of any regulation or loan covenant, as may
+be applicable to the Company at the time of declaration of
+dividend.
+- Statutory Restrictions
+When the markets are favorable, dividend pay-out can be
+liberal. However, in case of unfavorable Capital market
+conditions, Board may resort to a conservative dividend
+payout in order to conserve cash outflows.
+- Capital Market
+Considering the state of economy in the Country, the policy
+decisions that may be formulated by the Government and
+other similar conditions prevailing in the international market
+which may have a bearing on or affect the business of the
+Company, during uncertain or recessionary economic and
+business conditions, the Board may consider retaining a
+larger part of the profits to have sufficient reserves to absorb
+unforeseen circumstances.
+- Macroeconomic conditions
+▸ External Factors
+The trend of the performance/ reputation of the Company
+that has been during the past years determine the expectation
+of the shareholders.
+- Past performance/reputation of the Company
+In addition to the above, the general working capital
+requirements within the Company will also impact the decision
+of dividend declaration.
+- General Working capital requirement
+The Company's growth oriented decision to conserve cash in
+the Company for future expansion plan impacts shareholders
+expectation for the long run which shall have to considered by
+the Board before taking dividend decision.
+- Product/Project expansion plan
+▸ Internal Factors
+FACTORS THAT MAY AFFECT DIVIDEND
+PAYOUT
+8.
+Sanitation Programme
+The Board will consider the impact of proposed dividend on
+the operating cash flow of the Company and shall satisfy itself
+of its adequacy before taking a decision on whether to declare
+dividend or retain its profits.
+▸ Operating cash flow of the Company
+The profits earned by the Company during any financial
+year shall be first utilised to set off the accumulated losses/
+unabsorbed depreciation, if any of the Company from the
+previous financial years.
+While recommendation of Dividend shall be guided by this
+Policy, in extraordinary circumstances, the Board shall have
+complete liberty to recommend dividend in deviation to this
+policy, if so deemed necessary in the best interests of the
+Company and its stakeholders.
+The Policy sets out the circumstances and different factors for
+consideration by the Board at the time of taking such decisions
+of distribution or of retention of profits, in the interest of
+providing transparency to the equity shareholders. The Policy
+is not an 'alternative' but a 'Guide' to the decision of the Board
+for recommending dividend, which may be made after taking
+into consideration all the relevant circumstances enumerated
+hereunder and such other factors as may be decided as
+relevant by the Board.
+The Board of Directors (the "Board") of the Sun Pharmaceutical
+Industries Limited (the "Company") recognises the need to
+lay down a broad framework for considering decisions by the
+Board of the Company, with regard to distribution of dividend
+(including any interim dividend) to its equity shareholders and/
+or retaining or plough back of its profits.
+OBJECTIVES AND SCOPE:
+2.
+1.
+DIVIDEND DISTRIBUTION POLICY
+ANNEXURE - E
+PHARMA
+SUN
+55
+ANNUAL REPORT 2016-17
+During the current financial year 2016-17, Sun Pharma
+has invested 2.97 Million on aforesaid rural development
+projects across locations in India.
+In order to ensure road safety at Paonta and to make area free
+from stagnant water at Toansa, road divider at Paonta (Punjab)
+and drainage at Toansa (Punjab) have been constructed, which
+is benefiting the nearby communities.
+Construction of road divider and drainage line
+In order to make driver and pedestrians safer and to avoid
+several accidents caused by heavy traffic, Sun Pharma
+has set up traffic signals at rural areas of Madurantakam
+Taluka - Kanchipuram district. The project was executed
+under guidance of traffic control authority and is properly
+designed, located, operated and maintained by the concerned
+stakeholders and benefiting to local residential community and
+traveller.
+Installation of traffic Signals
+With the objective to provide infrastructural services in our
+operational villages, Sun Pharma, Madurantakam, has taken
+up the task of construction of building for public distribution
+supply, which has benefited 125 households, under this
+project, Sun Pharma has developed proper storage system as
+the commodities were wasted often when they shift from one
+house to another.
+Strengthening Public Distribution System
+The Policy reflects the intent of the Company to reward its
+equity shareholders by sharing a portion of its profits after
+adjusting for accumulated losses, if any, and also retaining
+sufficient funds for future growth of the Company. The
+Company intends to pay, subject to the circumstances and
+factors enlisted hereon, dividend, which shall be consistent
+with the performance of the Company over the years.
+Subject to the considerations as provided in the Policy, the
+Board shall determine the dividend payout in a particular year
+after taking into consideration the operating and financial
+performance of the Company, the advice of executive
+management including the CFO, and other relevant factors.
+The Policy shall not apply to:
+▸ Determination and declaring dividend on preference shares,
+if any.
+▸ Accumulated Losses, if any
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+56
+The Board shall consider the circumstances provided below
+before determination of any dividend payout after analyzing
+the prospective opportunities and threats, viability of the
+options of dividend payout or retention etc. The decision
+of dividend payout shall, majorly be based on the aforesaid
+factors considering the balanced interest of the stakeholders
+and the business requirements of the Company.
+6. CIRCUMSTANCES TO BE CONSIDERED WHILE
+DETERMINING DIVIDEND PAY-OUT
+To ensure that the saplings bloom into fully-grown trees
+transforming the avenue into a green belt, the team also
+shielded each sapling with a tree guard. This effort will also
+enliven the surrounding of the community over and above
+offering ecological benefits.
+PAYMENT OF DIVIDEND FROM RESERVES
+Dividend shall normally be declared from the profit earned by
+the Company during the relevant financial year after adjusting
+for accumulated losses & unabsorbed depreciation, if any
+and out of the carried forward profits not transferred to any
+reserves. However, under special circumstances, Dividend
+may be declared out of the accumulated profits earned by it
+in previous years and transferred by it to the free reserves,
+subject to compliance with the requirements of the relevant
+provisions of the Companies Act, 2013 including the Rules
+made thereunder.
+CATEGORY OF DIVIDENDS
+The Policy shall become effective from the date of its adoption
+by the Board i.e. November 10, 2016.
+EFFECTIVE DATE
+to make it mandatory to have a Dividend Distribution Policy in
+place by the top five hundred listed companies based on their
+market capitalisation calculated as on the 31st day of March
+of every year. The Company, being one of the top five hundred
+listed Companies in India on the basis of market capitalisation,
+requires to comply with the requirements of Regulation 43A.
+5.
+4.
+3.
+The Securities and Exchange Board of India ("SEBI") vide its
+Notification dated July 8, 2016 has amended the SEBI (Listing
+Obligations and Disclosure Requirements) Regulations, 2015
+(the "Listing Regulations") by inserting Regulation 43A in order
+RELEVANT REGULATIONS
+The Board of Directors shall have the power to recommend
+final dividend to the equity shareholders for their approval
+in the Annual General Meeting of the Company. Subject
+to compliance with the provisions of Companies Act, 2013
+including the Rules made thereunder and other relevant
+regulations, if any, the Board of Directors shall also have
+the absolute power to declare interim dividend during
+any financial year out of the surplus in the profit and loss
+account and out of profits of the financial year in which such
+interim dividend is sought to be declared, as and when they
+consider it fit in compliance with Companies Act, 2013 and
+other relevant regulations. Interim Dividend may be paid in
+order to supplement the annual dividend or in exceptional
+circumstances.
+4
+project is covered
+CSR Project or Activity Sector in which the
+Identified
+90.40
+31.89
+11.1%
+15.0%
+15.0%
+15.0%
+Not Applicable
+FLIT
+90.40
+Mr. S. Mohanchand Dadha
+Mr. Keki M. Mistry
+Mr. Ashwin S. Dani
+Ms. Rekha Sethi
+Mr. Uday Baldota (4)
+Mr. Sunil Ajmera(4)
+Non-executive, Independent Director
+3.91
+Mr. Hasmukh S. Shah
+2.30
+employees
+Mr. Kalyanasundaram Subramanian (3) Whole-Time Director
+ANNUAL REPORT 2016-17
+49
+SUN
+PHARMA
+ANNEXURE - B
+INFORMATION REQUIRED UNDER SECTION 197 OF THE ACT READ WITH RULE 5(1) OF THE
+COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014.
+(i) Ratio of the remuneration of each director to the median remuneration of the employees of the Company for the
+financial year 2016-17 and the percentage increase in remuneration of each Director, Chief Financial Officer and
+Company Secretary during the financial year 2016-17:
+(ii)
+Name of Director and
+Key Managerial Personnel
+Mr.Israel Makov
+Mr. Dilip S. Shanghvi (2)
+Mr. Sudhir V. Valia (2)
+Mr. Sailesh T. Desai (2)
+Designation
+Ratio of remuneration (1)
+of each Director to
+median remuneration of
+% increase/(decrease)
+in Remuneration (1) in the
+Financial Year 2016-2017
+Non-executive Chairman
+Managing Director
+Whole-Time Director
+Whole-Time Director
+Non-executive, Independent Director
+Israel Makov
+Chairman
+3.91
+3.68
+Average percentage increase made in the salaries of employees other than the Key Managerial Personnel in the financial year ending
+March 31, 2017 was 13.5% and the increase in the Key Managerial Personnel remuneration was 19.4%. The remuneration of Key
+Managerial Personnel has been decided in line with our overall reward philosophy of paying for performance (individual as well as
+Company performance) and ensuring market competitiveness.
+It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial Personnel and other
+Employees.
+May 26, 2017
+Mumbai
+50
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+For and on Behalf of Board of directors
+(v)
+Israel Makov
+Chairman
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+ANNEXURE - C
+To,
+The Members,
+Form No. MR-3
+CORPORATE OVERVIEW 01-07
+(iv) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year
+and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any
+exceptional circumstances for increase in the managerial remuneration:
+the percentage increase in the median remuneration of employees in the financial year 2016-17 (Median -2017/Median 2016): 7.9%
+(iii) the number of permanent employees on the rolls of the Company as on March 31, 2017: 17516
+(4) Remuneration is as per Form 16
+2.30
+Non-executive, Independent Director
+2.99
+Chief Financial Officer
+Not Applicable
+Company Secretary
+Not Applicable
+6.3%
+(10.5)%
+45.5%
+25.0%
+18.2%
+29.0%
+23.3%
+(1) Remuneration to Non Executive Directors consists only of sitting fees and is based on the number of meetings attended during the year. No commission
+was paid to Non-Executive Directors for the year 2016-17.
+(2) The details of remuneration for executive Directors given above are calculated as per the remuneration entitled to them as approved by the Board of
+Directors, within the limited approved by members & subject to the approval of Central Government. However, the actual amount paid during the year as
+per Form 16 for Mr. Dilip S. Shanghvi is 28.5 Million, Mr. Sudhir Valia is 28.2 Million and Mr. Sailesh T. Desai is ₹11.6 Million.
+(3) Appointed as an Additional and Whole-time Director w.e.f. February 14, 2017 without remuneration since, he is also whole-time Director of Sun Pharma
+Laboratories Limited (SPLL), the Company's wholly owned subsidiary and receives remuneration from SPLL.
+Non-executive, Independent Director
+Non-executive, Independent Director
+SECRETARIAL AUDIT REPORT
+For and on behalf of the Board of Directors
+Mumbai
+1
+Total
+Key Managerial Personnel
+Mr. Uday
+Baldota
+(Chief Financial
+Officer)
+(Company
+Secretary)
+Mr. Sunil Ajmera
+in Million
+no.
+Gross salary
+Particulars of Remuneration
+C) Remuneration to Key Managerial Personnel other than MD/Manager/WTD (As per form 16, on actual payment basis)
+76606964
+Remuneration (A+B)
+Total Managerial
+Overall Ceiling as per the Act Not applicable since no commission was paid during the year and 1,00,000 per Director per
+Meeting for Sitting fees.
+Amount
+Mr. Israel
+Makov
+Sr.
+(a) Salary as per provisions contained in section 17(1) of the Income-tax
+Act, 1961
+11.72
+41.78
+4
+0
+0
+0
+Sweat Equity
+3
+0
+0
+0
+0
+0
+0.77
+0.74
+0.03
+(b) Value of perquisites under section 17(2) of the Income Tax Act, 1961
+(c) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961
+Stock Option
+2
+53.50
+Mr. Ashwin
+Dani
+-NIL-
+Mohanchand
+Dadha
+Mr. S
+Section of the
+Companies Act
+Brief
+Description
+Details of
+Penalty/
+Punishment/
+Compounding
+fees imposed
+Authority [RD/ Appeal made, if
+NCLT / COURT] any (give Details)
+A. Company
+Penalty
+Punishment
+Compounding
+Туре
+B. Directors
+Punishment
+Compounding
+C. Other Officers in Default
+Penalty
+Punishment
+Compounding
+May 26, 2017
+Penalty
+VII PENALTIES / PUNISHMENT/COMPOUNDING OF OFFENCES:
+54.27
+42.52
+Total
+no.
+Name of Directors
+Particulars of Remuneration
+Sr.
+Amount in
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+0
+0
+5
+Others, please specify
+0
+Total
+11.75
+Mr. Keki Ms. Rekha Mr. Hasmukh
+Mistry
+Sethi
+Shah
+FOR THE FINANCIAL YEAR ENDED MARCH 31, 2017.
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
+Sun Pharmaceutical Industries Limited,
+Vadodara, Gujarat.
+* 24.09 Million
+Nil
+Details given below:
+Projects or Programs
+1. Local Area or other
+Sr.
+No.
+Since, the average net profits of the Company for the last three financial years
+was negative, the Company was not required to spend on CSR activities during
+the previous year. However, the Company has voluntarily spent on CSR activities.
+CSR Project or Activity Sector in which the
+Identified
+project is covered
+Mobile Medical Unit
+(MMU) Programme
+Healthcare
+2
+Healthcare Programme Healthcare
+3
+Educational
+Programme
+Education
+1
+The average net profits of the Company for the last three financial years was
+negative, due to loss incurred in last preceeding three years
+Mr. Dilip S. Shanghvi : Chairman, Mr. Sudhir V. Valia: Member and Ms. Rekha
+Sethi: Member
+The Company has identified health, education & livelihood, environment
+protection, water management and disaster relief as the areas where assistance
+is provided on a need-based and case-to-case basis. Your Company persisted with
+participation in such activities at the local, grass-root level during the year.
+The CSR policy can be accessed through the web link http://www.sunpharma.
+com/policies and details on projects and programmes are forming part of this
+Annual Report
+52
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+ANNEXURE - D
+ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES FOR THE
+FINANCIAL YEAR 2016-17
+Details
+1. A brief outline of the Company's CSR policy, including
+overview of projects or programmes proposed to be
+undertaken
+2. Reference to the web-link to the CSR policy and
+projects or programmes
+3. Composition of the CSR Committee
+4. Average net profit of the Company for last three
+financial years
+5. Prescribed CSR Expenditure (two percent of the
+amount as in item four above)
+6. Details of CSR spend for the financial year
+a) Total amount spent for the financial year
+b) Amount unspent, if any
+c) Manner in which the amount spent during the
+financial year
+Particulars
+The CSR policy of the Company encompasses its philosophy towards Corporate
+Social Responsibility and lays down the guidelines and mechanism for
+undertaking socially useful programs for welfare & sustainable development of
+the community at large.
+2. Specify the State and
+District where projects or
+programs was undertaken
+Halol (Panchmahal, Gujarat),
+Ahmednagar, (Maharashtra),
+Mohali (SAS Nagar, Punjab),
+Dewas (Madhya Pradesh),
+Toansa (SBS Nagar, Punjab)
+and Paonta (Sirmour district,
+Himachal Pradesh)
+This report is to be read with our letter of even date which is
+annexed as Annexure 1 and forms an integral part of this report.
+Halol (Panchmahal,
+Gujarat), Madurantakam
+Silvassa (UT of Dadra &
+Nagar Haveli) and Toansa
+(SBS Nagar, Punjab)
+Directly
+3.71
+3.71
+3.71
+Directly
+(Bharuch district, Gujarat),
+Halol (Panchmahal, Gujarat),
+0.60
+Madurantakam
+Tamilnadu), Silvassa (UT
+of Dadra & Nagar Haveli),
+Toansa (SBS Nagar, Punjab)
+ANNUAL REPORT 2016-17
+53
+SUN
+PHARMA
+Sr.
+No.
+(Kanchipuram district,
+0.60
+0.60
+2. HelpAge India
+Ahmednagar (Maharashtra),
+Ankleswar and Panoli
+Amount Outlay
+(Budget)
+Project or
+Programwise
+29.06
+Amount spent
+on the projects
+or programs
+(Direct
+Expenditure)
+15.10
+Cumulative
+expenditure upto
+to the reporting
+period
+47.90
+(in Million)
+Amount
+spent Directly
+or through
+implementing
+agency
+Implementing
+Agency
+1. Sun Pharma
+Community
+Healthcare
+Society
+(Kanchipuram, Tamilnadu),
+Place: Mumbai.
+Date: May 26, 2017.
+C. P. No. 12721
+The Securities and Exchange Board of India (Share Based
+f.
+g.
+h.
+i.
+Employee Benefits) Regulations, 2014;
+The Securities and Exchange Board of India (Issue of
+Capital and Disclosure Requirements) Regulations, 2009
+Not applicable to the Company for the year under
+review;
+The Securities and Exchange Board of India (Buyback of
+Securities) Regulations, 1998;
+-
+The Securities and Exchange Board of India (Registrars to
+an Issue and Share Transfer Agents) Regulations, 1993,
+regarding the Companies Act and dealing with client -
+Not applicable to the Company;
+The Securities and Exchange Board of India (Issue and
+Listing of Debt Securities) Regulations, 2008 - Not
+applicable to the Company for the year under review;
+We have also examined compliance with the applicable clauses of
+the following:
+(i)
+Secretarial Standards with respect to meeting of Board of
+Directors (SS-1) and General Meetings (SS-2) issued by The
+Institute of Company Secretaries of India under the provisions
+of Companies Act, 2013;
+During the period under review, the Company has complied with the
+provisions of the Act, Rules, Regulations, Guidelines etc. mentioned
+above.
+We further report that, we are unable to express our opinion with
+regard to remuneration to the Managing Director and Whole-time
+Director(s) of the Company for the years ended March 31, 2015,
+March 31, 2016 and March 31, 2017 are higher by 496 Lakhs,
+296 Lakhs and ₹447 Lakhs respectively than the amounts
+approved by the Central Government of India (Ministry of Corporate
+Affairs) on an application made by the Company to approve the
+maximum remuneration as approved by the members of the
+Company for the three years ended March 31, 2017, in excess
+of the limits specified under Schedule V to the Act, in case of
+inadequacy of profits. We have been informed by the Management
+of the Company that they have re-presented to the office of the
+Ministry of Corporate Affairs for approval of remuneration within
+the overall limits approved by the members of the Company for
+the years ended March 31, 2015 and March 31, 2016, and that for
+the year ended March 31, 2017, an application for revision in the
+remuneration, as approved by the members of the Company, has
+been made to the Ministry of Corporate Affairs. The response in
+respect of the foregoing re-representation/application for revision
+are awaited from the Ministry of Corporate Affairs.
+The Securities and Exchange Board of India (Delisting of
+Equity Shares) Regulations, 2009 - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India (Substantial
+Acquisition of Shares and Takeovers) Regulations, 2011;
+The Securities and Exchange Board of India (Prohibition
+of Insider Trading) Regulations, 2015;
+e.
+d.
+We have conducted the Secretarial Audit of the compliances of
+applicable statutory provisions and the adherence to good corporate
+governance practice by Sun Pharmaceutical Industries Limited
+("the Company"). Secretarial Audit was conducted in a manner that
+provided us a reasonable basis for evaluating the corporate conducts
+/ statutory compliances and expressing our opinion thereon.
+Based on our verification of the Company's books, papers, minute
+books, forms and returns filed and other records maintained by the
+Company and also the information provided by the Company, its
+officers, agents and authorised representatives during the conduct
+of secretarial audit, we hereby report that in our opinion, the
+Company has, during the audit period covering the financial year
+ended on March 31, 2017, complied with the statutory provisions
+listed hereunder and also that the Company has proper Board-
+processes and compliance-mechanism in place to the extent, in the
+manner and subject to the reporting made hereinafter:
+We have examined the books, papers, minute books, forms and
+returns filed and other records maintained by the Company for the
+financial year ended on March 31, 2017, according to the provisions
+of:
+i.
+The Companies Act, 2013 (the Act) and the rules made
+thereunder;
+ii.
+iii.
+iv.
+V.
+The Securities Contracts (Regulation) Act, 1956 ('SCRA') and
+the rules made thereunder;
+The Depositories Act, 1996 and the Regulations and Bye-laws
+framed thereunder;
+Foreign Exchange Management Act, 1999 and the rules
+and regulations made thereunder to the extent of Foreign
+Direct Investment, Overseas Direct Investment and External
+Commercial Borrowings;
+The following Regulations and Guidelines prescribed under the
+Securities and Exchange Board of India (“SEBI”) Act, 1992:
+a. The Securities and Exchange Board of India (Listing Obligations
+and Disclosure Requirements) Regulations, 2015;
+b.
+C.
+ANNUAL REPORT 2016-17
+51
+SUN
+PHARMA
+We have not verified the correctness and appropriateness of
+financial records and Books of Accounts of the Company.
+Where ever required, we have obtained the Management
+representation about the compliance of laws, rules and
+regulations and happening of events etc.
+The Secretarial Audit report is neither an assurance as to
+the future viability of the Company nor of the efficacy or
+effectiveness with which the management has conducted the
+affairs of the Company.
+▸ Drugs and Cosmetics Act, 1940 and rules made thereunder;
+▶The Narcotic Drugs & Psychotropics Substances Act, 1985;
+Factories Act, 1948.
+We further report that during the year under review:
+▶The Company had bought back 75,00,000 (Seventy-Five
+Lakhs Equity Shares of 1/- each at a price of 900/- (Rupees
+Nine Hundred only) per Equity Share on a proportionate
+basis through the tender offer process using Stock Exchange
+Mechanism.
+▶The Company had allotted 62,682 Equity Shares of * 1/-
+each to eligible employees who have exercised their options
+under Sun Employees Stock Options Scheme - 2015.
+For C. J. Goswami & Associates,
+Practicing Company Secretaries
+Chintan J. Goswami
+Proprietor
+Membership No. - 33697
+C. P. No. 12721
+Date: May 26, 2017.
+Place: Mumbai.
+For C. J. Goswami & Associates,
+Practicing Company Secretaries
+Chintan J. Goswami
+Proprietor
+Membership No. - 33697
+Identified and complied with following laws applicable to the
+Company:
+RANGE OF DIVIDEND PAY-OUT
+b)
+Adequate systems and processes commensurate with its
+size and operations, to monitor and ensure compliance with
+applicable laws, rules, regulations and guidelines;
+We further report that:
+1.
+2.
+3.
+The Board of Directors of the Company is duly constituted
+with proper balance of Executive Directors, Non-Executive
+Directors, Independent Directors and Woman Director.
+Adequate notice of at least seven days was given to all
+directors to schedule the Board Meetings and Meetings of
+Committees. Agenda and detailed notes on agenda were
+sent in advance in adequate time before the meetings and a
+system exists for Directors for seeking and obtaining further
+information and clarifications on the agenda items before the
+meeting and for meaningful participation at the meeting.
+On verification of minutes, we have not found any dissent/
+disagreement on any of the agenda items discussed in the
+Board and Committee meetings from any of the Directors and
+all the decisions are carried through.
+Based on the compliance mechanism established by the Company
+and on the basis of the Compliance Certificate(s) issued by the
+Respective Plant Heads/Occupiers of R&D Centres of the Company
+and taken on records by the Board of Directors at their meeting(s),
+we are of the opinion that the management has:
+ANNEXURE 1
+To,
+The Members,
+Sun Pharmaceutical Industries Limited,
+Vadodara, Gujarat.
+1.
+Our report of even date is to be read along with this letter.
+We have followed the audit practices and processes as
+were appropriate to obtain reasonable assurance about the
+correctness of the contents of the Secretarial records. The
+verification was done on test basis to ensure that correct
+facts are reflected in secretarial records. We believe that the
+processes and practices we followed provide a reasonable
+basis for our opinion.
+2.
+3.
+a)
+4.
+The Company is committed to deliver sustainable value to all
+its stakeholders. The Company strives to distribute an optimal
+and appropriate level of the profits earned by it in its business
+and investing activity, with the equity shareholders, in the
+form of dividend. As explained in the earlier part of this Policy,
+determining the dividend pay-out is dependent upon several
+factors, both internal to a business and external to it. Taking
+into consideration the aforementioned factors, the Board
+shall have absolute discretion to determine & recommend
+appropriate Dividend pay-out for the relevant financial year.
+0
+The Board may retain its earnings in order to make better
+utilisation of the available funds and increase the value of
+the stakeholders in the long run. The retained earnings of the
+Company may, inter alia, be utilised for the following purposes:
+10. MANNER OF UTILISATION OF RETAINED
+EARNINGS
+Commission as % of profit
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+58
+The Board may review and amend or modify this policy in
+whole or in part, at any time.
+▸ Such other manner as the Board may deem fit from time to
+time.
+11. REVIEW AND AMENDMENT
+▸ To fund new acquisitions & investments.
+▸ Towards investment in long term/ short term strategic joint
+ventures and/or partnerships and/or subsidiary companies;
+▸ Towards replacement/ up-gradation/modernisation of
+equipment's & plants;
+▸ To fund the research expenditures of ongoing research
+projects specifically those in the advanced development stages
+▸ To fund the project expansion plans of the Company;
+▸ To meet the working capital/ business needs of the
+Company
+▸ Towards diversification of business;
+64
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+The Non-Executive Directors of the Company are entitled
+to commission, if and to the extent approved by the Board,
+of 1% as approved by the members, in addition to the sitting
+fees of 100,000/- payable to the Non-Executive Directors
+for attending each meeting of the Board and/or of Committee
+thereof. No commission was paid to Non-Executive Directors
+for the year 2016-17.
+Member
+Member
+REMUNERATION OF DIRECTORS
+The Remuneration Policy for Directors, Key Managerial
+Personnel and other employees of the Company has been
+annexed as Annexure 'B' to the Corporate Governance
+Report.
+Mr. Israel Makov
+Ms. Rekha Sethi
+4
+4
+The Managing Director's and Whole-time Directors
+remuneration is approved by the Board, as per
+recommendation of the Nomination and Remuneration
+Committee within the overall limit fixed by the shareholders at
+their meetings.
+FINANCIAL STATEMENTS 80-278
+Mr. Dilip S. Shanghvi
+Directors
+Actual Remuneration/Sitting Fees for 2016-17
+Salary*
+Bonus
+4
+2,79,90,000
+Mr. Sudhir V. Valia
+2,79,90,000
+Mr. Sailesh T. Desai
+98,67,000
+19,73,400
+Mr. Kalsundaram Subramanian
+The details of Remuneration paid/payable to the Directors of the Company for the year ended March 31, 2017 are given below:-
+Chairman
+The terms of reference of the Nomination and Remuneration
+Committee inter alia include; to determine the Company's
+policy on specific remuneration packages for executive
+directors, to review, recommend and/or approve remuneration
+to Whole-time Directors, to review and approve the
+Remuneration Policy of the Company, to formulate criteria for
+evaluation of Independent Directors and the Board, to devise a
+policy on Board Diversity, to identify persons who are qualified
+to become directors and who may be appointed in senior
+management in accordance with the criteria laid down and
+recommend to the Board the appointment or removal of such
+persons and to discharge such other functions and exercise
+such other powers as may be delegated/ directed by the Board
+of Directors from time to time.
+attended
+Chairman/
+Member of the
+No. of Audit
+Committee
+Committee
+Meetings
+attended
+Mr. Keki M. Mistry
+Chairman
+6
+Mr. S. Mohanchand Dadha
+Member
+5
+Mr. Hasmukh S. Shah
+Member
+5
+Mr. Keki M. Mistry
+Mr. Ashwin S. Dani
+5
+Name of the Director
+COMMITTEE
+Chairman/
+Member of the
+Committee
+No. of
+Nomination
+May 30, 2016, August 12, 2016, November 10, 2016 and
+February 14, 2017. The attendance of each Member of the
+Committee is given below:
+5. NOMINATION AND REMUNERATION
+The Nomination and Remuneration Committee presently
+comprises of three Directors viz. Mr. Keki Mistry, Mr.
+Israel Makov and Ms. Rekha Sethi. Mr. Keki M. Mistry is
+the Chairman of the Committee. The constitution of the
+Nomination and Remuneration Committee meets with the
+requirements of Section 178 of the Companies Act, 2013 as
+also the requirements laid down in Regulation 19 of the Listing
+Regulations, 2015. Mr. Sunil R. Ajmera, the Company Secretary
+of the Company is the Secretary of the Committee.
+Mr. Israel Makov
+6.
+and
+Remuneration
+Committee
+Meetings
+Member
+Mr. S. Mohanchand Dadha
+20,60,561
+Mr. Keki M. Mistry
+Mr. Sudhir Valia
+Mr. Sailesh Desai
+Amount of remuneration
+including contribution to PF
+entitled for the year 2016-2017,
+as approved by the Board within
+the limit as approved by the
+members (excluding Perquisites
+such as reimbursement of
+electricity charges, motor vehicle
+charges, etc. which shall be taken
+at actuals)
+3,92,93,367
+3,92,93,367
+1,38,61,361
+Actual Amount Paid/
+Provided, out of the amount
+entitled for the year 2016-
+2017 (including contribution
+to P.F. and Perquisites such as
+reimbursement of electricity
+charges, motor vehicle
+charges, etc. at actuals)
+3,18,04,081
+3,15,83,490
+1,39,00,961
+Amount of
+Remuneration paid
+for 2016-2017, after
+excluding Contribution
+to PF which is excluded
+for calculation of limit
+as per Schedule V of the
+Companies Act 2013
+2,84,45,281
+2,82,24,690
+1,27,16,921
+Maximum
+Remuneration* p.a.
+for the current tenure
+of appointment as
+approved by the
+Members, subject
+to approval of the
+Central Govt.,
+5,64,00,000
+5,64,00,000
+1,54,00,000
+Mr. Kalyansundaram Subramanian has been appointed as an additional and as a Whole-time Director of the Company with effect from
+February 14, 2017, without any remuneration.
+*Company's contribution to provident fund, and superannuation fund or annuity fund, gratuity payment as per Company's rules and encashment of leave at the end
+of his tenure, are not included in the computation of, ceiling on remuneration and perquisites as aforesaid.
+**Commission to Managing Director: Subject to availability of profit and at the rate of not more than 1% of the net profit for the year, the Board of Directors will
+determine the commission payable within the overall ceiling laid as per the Act, as may be applicable from time to time. However no commission is paid to the
+Managing Director.
+Notes: -
+a)
+b)
+d)
+Mr. Dilip Shanghvi**
+Directors
+The details of remuneration that the Managing Director and the Whole-time Directors are entitled, the remuneration actually paid to them
+and the maximum limit of the remuneration as approved by the members are explained below:
+PHARMA
+Mr. Ashwin S. Dani
+Ms. Rekha Sethi
+Perquisites** / Benefits
+38,14,081
+35,93,490
+Four Nomination and Remuneration Committee Meetings
+were held during the year ended March 31, 2017. The dates
+on which the meetings were held are as follows:
+(Amount in *)
+Sitting Fees
+Total
+3,18,04,081
+3,15,83,490
+1,39,00,961
+10,00,000
+Mr. Hasmukh S. Shah
+17,00,000
+16,00,000
+10,00,000
+13,00,000
+* Salary includes Special Allowance.
+** Perquisites include House Rent Allowance, Leave Travel Assistance, Medical Reimbursement, contribution to Provident Fund and such other perquisites,
+payable to Directors.
+Besides this, all the Whole-time Directors are also entitled to
+encashment of leave as per Company policy, and gratuity at
+the end of tenure, as per the rules of the Company.
+Pursuant to the approval of the Shareholders at the 22nd
+Annual General Meeting, the Company had applied to the
+Central Government under Section 197(3) read with Schedule
+V of the Companies Act, 2013 for approval of maximum
+limit of remuneration as approved by members, in view of
+inadequacy of profits. The approval granted by the Central
+Government was for ₹ 60,00,000 (Rupees Sixty Lakhs only)
+per annum for a period of three years with effect from April
+1, 2014 to March 31, 2017. Pursuant to calculation as per
+Part-A of Section II of Schedule V of the Companies Act 2013
+read with MCA circular dated September 12, 2016, in case of
+inadequate profits, based on the calculation of effective capital
+of our Company as on the last day of financial year preceding
+the financial year of the respective year of appointment
+of the Managing Director and Whole-time Directors, the
+Managing Director and Whole-time Directors are eligible for
+remuneration upto 3.04 Crores per annum, each without
+approval of the Central Government. Accordingly the Company
+had made several representations to the Central Government
+to approve the remuneration of the Managing Director and
+Whole-time Directors upto the aforesaid limit as calculated as
+per Schedule V. However the Ministry of Corporate Affairs/
+Central Government reiterated the approval for remuneration
+of 60 Lakhs each per annum for the years from April 1, 2014
+to March 31, 2017 for the Managing Director and Whole-time
+Directors. The Company has made further representation, to
+the Central Government for reconsidering the approval on
+additional grounds for which the response from the MCA is
+awaited.
+Further at the 24th AGM, the members' approval was also
+obtained for revision in the remuneration of the Managing
+Director and the Whole-time Directors from April 1, 2016
+for the remaining period of their respective current term
+of appointment upto March 31, 2018 March 31, 2019, as
+applicable. Consequently during the year, an application for
+revision in the remuneration of the Managing Director and
+a Whole-time Director, from April 1, 2016 for the remaining
+period of their respective current term of appointment upto
+March 31, 2018 March 31, 2019, as applicable, has been
+made by the Company to the Ministry of Corporate Affairs.
+The approval in respect of the foregoing application for
+revision is awaited from the Ministry of Corporate Affairs
+In view of the approval for application of revision in
+remuneration being awaited, for the year 2016-2017, the
+Company has paid remuneration within the ceiling limit of
+*3.04 Crores, as mentioned above, to the Managing Director
+and Whole-time Director(s). On receipt of the approval
+from the Central Government of India, the balance amount
+of remuneration for the year 2016-17, if any, as per their
+entitlement, shall be paid to the Managing Director and
+Whole-time Director(s), as applicable, and the same shall be
+given effect to in the year in which the approval is received.
+Excess remuneration, if any, after final approval in respect of
+the application for revision is received, shall be refunded by
+the respective Managing Director and Whole-time Directors.
+ANNUAL REPORT 2016-17
+65
+SUN
+17,00,000
+The Nomination and Remuneration Committee had devised
+criteria for evaluation of performance of the Directors
+including Independent Directors. The said criteria provides
+certain parameters like knowledge, competency, fulfillment
+of functions, availability and attendance, initiative, integrity,
+contribution, independent views and judgment, which are in
+compliance with applicable laws, regulations and guidelines.
+ANNUAL REPORT 2016-17
+May 14, 2016, May 30, 2016, June 23, 2016, August 12, 2016,
+November 10, 2016 and February 14, 2017. The attendance of
+each Member of the Committee is given below:
+Mr. Dilip S. Shanghvi
+*Mr. Kalyanasundaram Subramanian was appointed as Additional Director and Whole-time Director of the Company w.e.f. February 14, 2017.
+Number of Board Meetings held during the year ended March 31, 2017 and the dates on which held:
+Six Board meetings were held during the year. The dates on which the meetings were held during the year ended March 31, 2017 are as
+follows:
+May 30, 2016, June 23, 2016, August 12, 2016, September 17, 2016, November 10, 2016 and February 14, 2017.
+62
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+Attendance of each Director at the Board meetings, last Annual General Meeting (AGM), and number of other Directorships and
+Chairmanships/Memberships of Committee of each Director, is given below:
+Attendance Particulars for the year ended
+Name of the Director
+March 31, 2017
+Board Meetings
+Last AGM held on
+September 17, 2016
+Other
+Directorships
+Committee
+Memberships**
+*No. of other Directorships and Committee
+Memberships / Chairmanships as of March 31, 2017
+Committee
+Chairmanships**
+Mr. Israel Makov
+6
+Mr. Dilip S. Shanghvi
+5
+Yes
+Yes
+1
+Brother-in-law of
+Brother-in-law of Mr. Sudhir V. Valia
+Inter-se Relationship between Directors
+Mr. Ashwin S. Dani
+Ms. Rekha Sethi
+PHARMA
+CORPORATE GOVERNANCE
+In compliance with Regulation 34(3) read with Schedule V of the
+Securities and Exchange Board of India (Listing Obligations and
+Disclosure Requirements) Regulations, 2015 ("Listing Regulations,
+2015"), the Company submits the Corporate Governance Report for
+the year ended March 31, 2017.
+1. COMPANY'S PHILOSOPHY ON CODE OF
+CORPORATE GOVERNANCE
+Sun Pharmaceutical Industries Limited's philosophy on
+Corporate Governance envisages working towards high levels
+of transparency, accountability, consistent value systems,
+2.
+delegation across all facets of its operations leading to sharply
+focused and operationally efficient growth. The Company
+tries to work by these principles in all its interactions with
+stakeholders, including shareholders, employees, customers,
+suppliers and statutory authorities.
+Sun Pharmaceutical Industries Limited is committed to learn
+and adopt the best practices of Corporate Governance.
+BOARD OF DIRECTORS
+The present strength of the Board of Directors of your
+Company is ten Directors
+Composition and category of Directors is as follows:
+Category of Directors
+Non-Promoter
+Mr. Sudhir V. Valia
+Non-Executive and
+Promoter
+Executive Director
+Non-Promoter Executive Directors
+Non-Executive Independent Directors
+Name of the Directors
+Mr. Israel Makov
+(Chairman)
+Mr. Dilip S. Shanghvi
+(Managing Director)
+Mr. Sudhir V. Valia
+(Whole-time Director)
+Mr. Sailesh T. Desai
+(Whole-time Director)
+Mr. Kalyanasundaram Subramanian*
+(Whole-time Director)
+Mr. S. Mohanchand Dadha
+Mr. Hasmukh S. Shah
+Mr. Keki M. Mistry
+Non - Independent Director
+Name of the Director
+5
+4
+No
+Yes
+5
+3
+2
+1
+1
+1
+*The above list of other directorships does not include Directorships, Committee Memberships and Committee Chairmanships in Private Limited, Foreign and
+Section 8 Companies.
+**
+The Committee Memberships and Chairmanships in other Companies include Memberships and Chairmanships of Audit and Stakeholders' Relationship
+Committee only.
+# Mr. Kalyanasundaram Subramanian was appointed as an Additional Director and a Wholetime Director of the Company w.e.f. February 14, 2017 and therefore
+entitled to attend only one board meeting.
+##Mr. Keki Mistry, Chairman of the Audit Committee and Nomination and Remuneration Committee could not attend the last Annual General Meeting of the
+Company due to his prior commitments. However, he appointed Mr. Hasmukh Shah, member of the Audit Committee and Ms. Rekha Sethi, member of the
+Nomination & Remuneration Committee to answer to the shareholders' queries on his behalf at the Annual General Meeting.
+3. CODE OF CONDUCT
+The Board of Directors has laid down a Global Code of
+Conduct for all Board members, and all employees, including
+the senior management of the Company. All the Directors and
+senior management have affirmed compliance with the Global
+Code of Conduct as approved and adopted by the Board
+of Directors and a declaration to this effect signed by the
+Managing Director has been annexed as Annexure 'A' to the
+Corporate Governance Report. The code of conduct has been
+posted on the website of the Company www.sunpharma.com.
+4. AUDIT COMMITTEE
+The Audit Committee of the Company presently comprises
+of four independent non-executive Directors viz. Mr. Keki M.
+Mistry, Mr. S. Mohanchand Dadha, Mr. Ashwin S. Dani and
+Mr. Hasmukh S. Shah. Mr. Keki M. Mistry is the Chairman of
+the Committee. The constitution of Audit Committee meets
+with the requirements as laid down under Section 177 of the
+Companies Act, 2013 and also of Regulation 18 of the Listing
+Regulations, 2015. Mr. Sunil R. Ajmera, the Company Secretary
+of the Company is the Secretary of the Audit Committee.
+The terms of reference of the Audit Committee inter alia
+include: overseeing the Company's financial reporting
+process, reviewing the quarterly/half-yearly/annual financial
+statements, reviewing with the management the financial
+statements and adequacy of internal audit function,
+management letters issued by the statutory auditor,
+recommending the appointment/re-appointment of statutory
+auditors and fixation of audit fees, reviewing the significant
+internal audit findings/related party transactions, reviewing
+the Management Discussion and Analysis of financial
+condition and result of operations, scrutiny of inter-corporate
+loans, review of internal financial control and risk management,
+review functioning of Whistle Blower/Vigil Mechanism,
+approval of appointment of CFO, and also statutory
+compliance issues, etc.
+The Committee acts as a link between the management,
+external and internal auditors and the Board of Directors of
+the Company.
+Executives from the Finance Department, representatives of
+the Statutory Auditors and Internal Auditors are also invited to
+attend the Audit Committee Meetings, whenever necessary.
+The Committee has discussed with the Statutory and Internal
+auditors about their audit methodology, audit planning and
+significant observations/suggestions made by them.
+In addition, the Committee has discharged such other role/
+function as envisaged under Regulation 18 of the Listing
+Regulations, 2015 and the provisions of Section 177 of the
+Companies Act, 2013.
+The Agreement with Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia
+and Mr. Sailesh T. Desai, the Executive Directors are for a
+period of 5 years. Either party to the agreement is entitled to
+terminate the Agreement by giving to the other party 30 days'
+notice in writing. The agreement with Mr. Kalyansundaram
+Subramanian, Wholetime Director, would be entered into,
+after the 25th Annual General Meeting of the Company, will
+be for a period of 2 years wef February 14, 2017, and either
+party to the agreement would be entitled to terminate the
+agreement by giving to the other party notice of three months
+in writing.
+63
+SUN
+PHARMA
+Six Audit Committee Meetings were held during the year
+ended March 31, 2017. The dates on which the Meetings
+were held are as follows:
+6
+Ms. Rekha Sethi
+4
+4
+2
+Mr. Sailesh T. Desai
+6
+Yes
+2
+Mr. Kalyanasundaram Subramanian
+1#
+Not Applicable
+1
+-
+Mr. S. Mohanchand Dadha
+6
+Yes
+No
+3
+1
+Mr. Hasmukh S. Shah
+5
+Yes
+1
+-
+1
+Mr. Keki M. Mistry
+Mr. Ashwin S. Dani
+5
+No##
+9
+4
+1
+The Company had formulated two Schemes for grant of
+stock options to the eligible employees of erstwhile Ranbaxy
+Laboratories Ltd., pursuant to the Scheme of Arrangement for
+merger of Ranbaxy Laboratories Ltd., into the Company. None
+of the Directors are entitled to stock options.
+(Amount in *)
+The remuneration of Whole-time Directors consists only of
+fixed components.
+(e)
+oral formulations of labile products are in advanced stages of
+product development.
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+60
+Novel compact dosage forms having differentiation with
+regards to improved stability and/or reduced pharmacokinetic
+variability have been developed for India market. Stable liquid
+Process robustness has been implemented for wide range of
+products which has resulted in positive outcomes with respect
+to cost and increase in process capability.
+There has been thrust on the development of novel
+technologies like use of green reagents for chemical
+transformations in API synthesis and ultrasonic crystallisation
+for achieving required particle size, Capillary flow reactors
+for continuous process, safety related studies using reaction
+calorimetry. Product Life cycle management has been
+undertaken for key products. Backward integration is a key
+strategic objective and many of our products enjoy the benefit
+of this backward integration.
+The Company continues to invest on R&D, both as revenue
+expenses as well as capital expenditure. A large part of the
+spending is for complex products, specialty and ANDA filings
+for the US, and API technologies that are complex and may
+require dedicated manufacturing blocks. Investments have
+been made in creating research sites, employing scientifically
+skilled and experienced manpower, adding equipment,
+sponsored research and in accessing world class consultants
+to continuously upgrade the research understanding of the
+scientific team in the technologies and therapy areas of our
+interest.
+Technology Absorption, Adaptation and Innovation
+Efforts in brief, made towards technology absorption,
+adaptation and innovation
+Total Turnover
+expenditure as % of
+12.2%
+13.4%
+Total R&D
+9581.6
+10,430.3
+Total
+c)
+9037.9
+9,038.0
+Revenue
+b)
+543.7
+1,392.3
+2.
+Capital
+Benefits derived as a result of the above efforts
+(a)
+68
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+ANNUAL REPORT 2016-17
+Chairman
+Israel Makov
+For and on behalf of the Board of Directors
+42,171.0
+21,582.6
+44,118.1
+24,484.1
+May 26, 2017
+Mumbai
+We are among the few selected companies that have
+set up completely integrated manufacturing capability
+for the production of anticancer, hormones, peptide,
+immunosuppressant and steroidal drugs.
+(d)
+Offer technologically advanced differentiated products
+which are convenient and safe for administration to
+patients.
+(c)
+Earnings
+Outgo
+2.
+1.
+Year ended
+March 31, 2017 March 31, 2016
+in Million
+Year ended
+C. FOREIGN EXCHANGE EARNINGS AND OUTGO
+Your Company has not imported technology during the last 5
+years reckoned from the beginning of the financial year.
+Clinical studies of important products (specialty, complex
+and difficult to formulate) have been carried out at our
+in-house clinical pharmacology units. This has helped to
+maintain R&D quality and regulatory compliance with
+significantly reduced cost.
+The Company has benefited from reduction in cost due
+to import substitution and increased revenue through
+higher exports.
+(f)
+3.
+Not dependent on imported technology, can make high
+cost products available at competitive prices by using
+indigenously developed manufacturing processes and
+formulation technologies.
+Market leader for several complex products. Offers
+complete baskets of products under chronic therapeutic
+classes. Strong pipeline of products for future
+introduction in India, emerging markets, as well as
+US and European generic market. Ability to challenge
+patents in the US market, and earn exclusivity.
+(b)
+e.g. product improvement, cost reduction, product
+development, import substitution
+a)
+March 31, 2016
+Year ended
+March 31, 2017
+3.
+►In following factories biomass briquettes are used instead
+of conventional fuel.- Ahmednagar, Panoli, Mohali, Silvassa,
+Dadra, Karkhadi, Dewas, MKM Chennai.
+Steps taken by the Company for utilising alternate
+sources of energy
+▸ Maintain Power Factor near to unity & reduced contract
+demand.
+▸ Opt TOD base Electricity bill option to get benefit in electricity
+bill.
+▸ Reduction of steam production cost by installing Briquette
+boiler.
+►Use of Solar water system for Canteen use.
+▶Lightings load reduction by installation of LED lightings.
+Improve boiler system efficiency by improving condensate
+recovery, installation condensate recovery units & by recovering
+flash steam - Direct purging of steam into hot water system,
+cleaning & maintenance activity of Solar panel during the year.
+▶ Operate high pressure pumps of Filtration Unit with open loop
+VFD to reduce Energy usage.
+▸ Optimised brine requirement by installation dedicated brine
+machine as per Process requirement.
+▸ Optimised compressed air requirement by installation
+dedicated compressor with low pressure delivery & by arresting
+compressed air leakages - installed separate header for air
+supply to ETP as per their requirement.
+▸ Electricity usages are reduced by confined control on lightings.
+▶ Use of energy Screw Chillier instead of Reciprocating Chillier.
+►Install & use of energy efficient Screw compressor instead of
+reciprocating compressor
+▸ Reduce electricity cost by employing Open access power
+purchase.
+of Energy
+2.
+1. Steps taken or impact on Conservation
+CONSERVATION OF ENERGY
+A.
+PARTICULARS OF ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
+EARNINGS AND OUTGO REQUIRED UNDER THE COMPANIES (ACCOUNTS) RULES, 2014
+ANNEXURE - F
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+61
+Note:- In year 2016-17 Biomass fired Boiler is installed in
+Dewas plant
+▸ In MKM Chennai - Partially power is used from the wind
+mills.
+Capital investment on energy conservation equipments
+▸ Capital investment of 1898 lakh is done on energy
+conservation equipments.
+B. TECHNOLOGY ABSORPTION
+Year ended
+* in Million
+1.
+b.
+Expenditure on R&D
+4.
+invest in R&D as it ramps up its product pipeline.
+world markets. Our subsidiary Taro is likely to continue to
+We continue to invest in people, capability development,
+equipment and infrastructure to compete effectively across
+Future plan of action
+The Department of Scientific and Industrial Research, Ministry
+of Science and Technology of Government of India has granted
+approval to the in house research and development facilities of
+the Company under the provision of the Income Tax Act, 1961.
+During the year, the Company has filed 106 Drug Master Files
+across various countries, including US, India and other markets.
+Benefits derived as a result of the above R&D
+In FY17, 77 formulations were developed and filed from
+our R&D locations for the Indian and advanced markets and
+203 dossiers were submitted for filing in emerging markets.
+All of these were based on technology developed in-house.
+Technology for several APIs was commercialised. For some of
+the important APIs that we already manufacture, processes
+were streamlined or altered so as to have more energy
+efficient or cost effective or environment friendly processes.
+Non-infringing processes were developed to gain early market
+entry in many regulated markets. A large part of our external
+API sales is to the regulated markets of US / Europe, and earns
+valuable foreign exchange, as also a reputation for quality
+and dependability. The Company's formulation brands are
+exported to over 150 international markets. In addition, our
+subsidiary Taro's formulation development capability supports
+the filing and scale up of ANDAs for the US and other markets.
+Vadodara-390 020, Gujarat
+The API process development is focused for developing and
+transferring commercially viable, non-infringing and patentable
+novel API technologies. The development grid selection for
+APIs is based on the difficult-to-make API molecules and
+also novel polymorphic forms and co-crystals of certain APIs
+for creating value addition. Other areas of interest include
+developing differentiated particles size for APIs as per the
+requirement and green chemistry approaches.
+3.
+2.
+PHARMA
+SUN
+59
+ANNUAL REPORT 2016-17
+The R&D team also works on products that are based
+on complex drug delivery systems. Complex products
+Projects in formulation development and process chemistry
+help us introduce a large number of new and novel products
+in the US, India and rest of the world markets that includes
+differentiated products with high technology barriers that
+limits competition and thus helps counter price erosion.
+Expertise in medicinal/ process chemistry equips us to be
+integrated right up to the API stage, for important products,
+advanced intermediates or products where the API is difficult
+to source. Strong new product development capability is
+an important part of our strategy, and R&D expertise helps
+us maintain our leadership position in the Indian and global
+markets with niche formulations.
+At our modern R&D centres, expert scientist teams are
+engaged in complex developmental research projects in
+process chemistry and dosage forms, including complex
+generics based on drug delivery systems. This work across
+formulations and API supports the short, medium and long
+term business needs of the Company, in global markets
+including India.
+Specific areas in which R&D is carried out by the Company
+We continue to increase investments for generic and specialty
+pharmaceutical research and technology. Additionally, patient
+friendly formulations for existing molecules which, offer
+increased convenience to patients are being developed. This
+research supports our generic business across all the markets
+we are present in, and ensures we have a healthy pipeline
+for future growth. It also helps us in enhancing our specialty
+pipeline for global markets.
+Research and Development
+1.
+a.
+like steroids, sex hormones, peptides, carbohydrates
+immunosuppressant, carbapenems, anticancer, anti-diabetic,
+cardiovascular and antivirals, which require special skills and
+technology are developed and scaled up for both API and
+dosage forms. This complete integration for some products
+helps to deliver advanced products to the market faster at
+competitive pricing.
+11.15 a.m.
+September 17, 2016
+2015-2016 Twenty- Fourth AGM Sir Sayajirao Nagargruh, Akota,
+Member
+4
+Investor Complaints:
+The total numbers of complaints received and resolved to
+the satisfaction of shareholders during the year under review were 4.
+8. COMMITTEE OF DIRECTORS (ALLOTMENT)
+The Committee of Directors (Allotment) presently comprises
+of Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia, Mr. Sailesh T.
+Desai, Mr. S. Mohanchand Dadha and Mr. Hasmukh S. Shah.
+Mr. Sudhir V. Valia is the Chairman of the Committee and
+Mr. Sunil R. Ajmera, Company Secretary is the Secretary of
+the Committee.
+Three meetings of the Committee of Directors (Allotment)
+were held during the year ended March 31, 2017. The dates
+on which Meetings were held are as follows:
+May 2, 2016, November 22, 2016 and February 14, 2017. The
+attendance of each Member of the Committee is given below.
+Name of the Director
+Mr. Sudhir V. Valia
+Chairman/
+Member of the
+Committee
+No. of
+Committee
+of Directors
+(Allotment)
+Meetings
+attended
+Chairman
+1
+Mr. Hasmukh S. Shah
+Member
+3
+Mr. Sailesh T. Desai
+Member
+3
+Mr. S. Mohanchand Dadha
+Mr. Dilip S. Shanghvi
+Member
+1
+Member
+Mr. S. Mohanchand Dadha
+3
+Member
+Mr. Dilip S. Shanghvi
+The details of Equity Shares held by Non-Executive Directors
+as on March 31, 2017:
+Director
+Mr. Israel Makov
+Mr. S. Mohanchand Dadha
+Mr. Hasmukh S. Shah
+Mr. Keki M. Mistry
+Mr. Ashwin S. Dani
+Ms. Rekha Sethi
+No. of Equity Shares held (held
+singly or jointly as first holder)
+Nil
+Nil
+Nil
+43,270
+Nil
+Nil
+7. STAKEHOLDERS' RELATIONSHIP COMMITTEE
+The Stakeholders' Relationship Committee presently comprises
+of Mr. S. Mohanchand Dadha, Mr. Dilip S. Shanghvi, Mr.
+Sudhir V. Valia with Mr. Hasmukh S. Shah as the Chairman.
+The constitution of the Stakeholders' Relationship Committee
+meets with the requirements of Section 178 of the Companies
+Act, 2013 and also of Regulation 20 of the Listing Regulations,
+2015. Mr. Sunil R. Ajmera, the Company Secretary of the
+Company is the Secretary of the Committee. The Board of
+Directors has delegated the power of approving transfer
+of securities to M/s. Link Intime India Pvt. Ltd, and/or the
+Company Secretary of the Company.
+66
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+3
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+FINANCIAL STATEMENTS 80-278
+The terms of reference of the Committee inter alia includes
+the following: To look into redressal of grievances of
+shareholders, debenture holders and other security holders
+of the Company, to consider and resolve grievances of the
+security holders of the Company including complaints related
+to transfer of shares, non-receipt of balance sheet, non-receipt
+of declared dividends, etc, to approve issue of duplicate share
+certificates and to oversee and review all matters connected
+with the transfer, transmission and issue of securities, to
+oversee the performance of the Registrar and Transfer Agents
+and recommend measures for overall improvement in the
+quality of investor services, to investigate any activity within
+its terms of reference, to seek information from share transfer
+agents, to obtain outside legal or other professional advice and
+to secure attendance of outsiders with relevant expertise, if
+it considers necessary and have full access to the information
+contained in the records of the Company.
+The Board has designated severally, Mr. Sunil R. Ajmera,
+Company Secretary and Mr. Ashok I. Bhuta, Sr. G.M -
+Secretarial as Compliance Officers.
+Four Meetings of the Stakeholders' Relationship Committee
+were held during the year ended March 31, 2017. The dates
+on which Meetings were held are as follows: May 30, 2016,
+August 12, 2016, November 10, 2016 and February 14, 2017.
+The attendance of each Member of the Committee is given
+below:
+Name of the Director
+Chairman/
+Member of the
+Committee
+No. of
+Stakeholders'
+Committee
+Meetings
+attended
+Mr. Hasmukh S. Shah
+Chairman
+3
+Mr. Sudhir V. Valia
+Member
+4
+08-79
+There is no separate provision for payment of severance fees
+to Whole-time Director(s).
+The Committee of Directors (Allotment) interalia has the
+following powers: To allot shares pursuant to ESOP Schemes
+and to issue the equity share certificates to the shareholders
+holding the shares in physical form, to perform any or all of
+the acts, deeds, things and matters as may be required in
+connection with such issue, allotment and Listing of Equity
+Shares of *1/- each
+The Corporate Social Responsibility Committee presently
+comprises of Mr. Sudhir V. Valia, Ms. Rekha Sethi with Mr. Dilip
+Shanghvi as the Chairman. The constitution of the Corporate
+Social Responsibility Committee meets the requirements of
+section 135 of the Companies Act, 2013. Mr. Sunil R. Ajmera,
+the Company Secretary of the Company is the Secretary of
+the Committee. The terms of reference of the Corporate
+Social Responsibility Committee include to formulate and
+recommend to the Board, a Corporate Social Responsibility
+Policy, to monitor the Corporate Social Responsibility Policy
+of the Company from time to time, to recommend the amount
+of expenditure to be incurred on the activities, to monitor
+amount spent on the CSR initiatives of the Company as per
+the CSR policy, to discharge such other functions and exercise
+such other powers as may be delegated/ directed by the
+Board of Directors from time to time. The contents of the CSR
+Policy of the Company can be accessed through the web link:
+http://www.sunpharma.com/policies.
+Member
+2
+10. RISK MANAGEMENT COMMITTEE
+The Risk Management Committee comprises of Mr. Dilip S.
+Shanghvi, Managing Director of the Company, Mr. Sudhir
+V. Valia, Whole time Director of the Company and Mr.
+Uday Baldota, CFO of the Company. The Chairman of the
+Committee is Mr. Dilip Shanghvi. The constitution of the
+Committee meets the requirements of Regulation 21 of the
+Listing Regulations, 2015. The terms of reference of the
+committee inter alia include: to formulate and recommend
+to the Board a Risk Management Plan/Policy, to implement,
+monitor and review the risk management plan for the
+Company, to recommend and implement procedures for
+risk assessment and minimisation, to monitor the Risk
+Management Policy of the Company from time to time, to
+discharge such other functions and exercise such other powers
+as may be delegated/ directed by the Board of Directors from
+time to time. Mr. Sunil R. Ajmera, the Company Secretary of
+the Company is the Secretary of
+the Committee.
+During the year ended March 31, 2017, two meetings of Risk
+Management Committee Meetings were held on November 9,
+2016 and February 13, 2017. The attendance of each member
+of committee is as follows:
+12. GENERAL BODY MEETINGS
+11. SUBSIDIARY COMPANIES
+In accordance with Regulation 16 of the Listing Regulations,
+2015, Sun Pharma Laboratories Limited is a material Indian
+subsidiary Company (whose Debt Securities are listed on
+BSE) whose turnover or net worth (i.e., paid-up capital and
+free reserves) exceeds 20% of the consolidated turnover or net
+worth respectively, of the Company and its subsidiaries in the
+immediately preceding accounting year.
+Mr. S. Mohanchand Dadha, and Ms. Rekha Sethi, Independent
+Directors of the Company are also Directors on the Board of
+Sun Pharma Laboratories Limited, as per the requirements
+specified in Regulation 24 of the Listing Regulations, 2015.
+The financial statements including investments made by the
+unlisted subsidiaries were placed before and reviewed by the
+Audit Committee of the Company.
+The Board of Directors of the Company reviewed periodically,
+the statement of all significant transactions and arrangements
+entered into by the unlisted subsidiary companies.
+Copies of the Minutes of the Board Meetings of the unlisted
+subsidiary Companies were placed at the Board Meetings of
+the Company held during the year.
+The policy for determining material subsidiaries of the
+Company is available on the website of the Company and can
+be accessed at http://www.sunpharma.com/policies.
+Location and time of the last three Annual General Meetings ("AGM") held are as follows:
+(i)
+Year
+2013-2014
+Meeting
+Location
+Date
+Twenty-Second AGM Sir Sayajirao Nagargruh, Akota,
+September 27, 2014
+Time
+12.00 noon
+Vadodara- 390 020, Gujarat
+2014-2015 Twenty-Third AGM
+Prof. Chandravadan C. Mehta Auditorium -
+General Education Center, Maharaja Sayajirao
+University of Baroda, Near D. N. Hall, PratapGunj,
+Vadodara-390002, Gujarat
+October 31, 2015
+9.45 a.m.
+2
+Member
+Mr. Sudhir V. Valia
+Ms. Rekha Sethi
+1
+ANNUAL REPORT 2016-17
+67
+SUN
+PHARMA
+During the year ended March 31, 2017, two meetings of
+Corporate Social Responsibility Committee were held on May
+30, 2016 and February 14, 2017. The attendance of each
+member of Committee is as follows:
+Name of the Director
+Chairman/
+Member of the
+Committee
+No. of Risk
+Management
+Committee
+Meetings
+attended
+Mr. Dilip S. Shanghvi
+Chairman
+9. CORPORATE SOCIAL RESPONSIBILITY
+COMMITTEE
+2
+Chairman/
+Member of the
+Committee
+No. of
+Corporate
+Social
+Mr. Sudhir V. Valia
+Mr. Uday Baldota
+Member
+2
+Member
+2
+Responsibility
+Committee
+Meetings
+attended
+Mr. Dilip S. Shanghvi
+Chairman
+Name of the Director
+SUN
+% Change in
+BSE Sensex
+78
+200
+300
+8,165
+8,225
+400
+8,561
+500
+7500
+7,850
+8,160
+8,288
+8,611 8,626
+8,639
+8,786
+8000
+100
+7000
+NSE Nifty (Closing)
+Closing Price of Sun Pharma's shares on NSE
+29000
+800
+28,743
+743 748
+775
+763 764
+811
+8500
+900
+30000
+29,621
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+72
+830
+710
+600
+688
+March, 2017
+618.40
+689.55
+619.40
+688.80
+February, 2017
+627.00
+657.40
+627.20
+656.20
+January, 2017
+608.00
+730.95
+608.10
+730.75
+728.45
+671.20
+729.05
+671.10
+700
+630 632
+9000
+679
+710
+800
+743 748
+8,880
+9,174
+763 763
+811
+900
+830
+9500
+15.8 Share price performance in comparison to broad-based indices - BSE Sensex and NSE Nifty.
+(Source: Compiled from data available on BSE and NSE websites)
+776
+December, 2016
+630 632
+28000
+5 years
+years
+3
+2 years
+Year-on-year
+Period
+Share price performance relative to Nifty based on share price on March 31, 2017
+425.87%
+71.32%
+-12.37%
+-38.68%
+126.59%
+70.19%
+32.32%
+5.95%
+10 years
+Sun Pharma Share Price
+-16.08%
+-32.79%
+411.33%
+68.24%
+-17.11%
+-40.83%
+-34.63%
+Sun Pharma relative to NIFTY
+140.05%
+Sun Pharma relative to Sensex
+-32.96%
+73.24%
+8.04%
+18.55%
+NIFTY
+% Change in
+551.38%
+141.48%
+19.73%
+36.84%
+700
+16.88%
+200
+25,607
+25000
+26,653 26,626
+26000
+500
+27,656
+600
+679 688
+26,668
+27,000
+27000
+27,866
+27,930
+28,052
+28,452
+24000
+23000
+111111111 19
+BSE Sensex (Closing)
+300
+400
+552.47%
+141.51%
+19.94%
+-32.73%
+-16.08%
+100
+Sun Pharma Share Price
+5 years
+3 years
+2 years
+Period
+Year-on-year
+Share price performance relative to BSE Sensex based on share price on March 31, 2017.
+(Source: Compiled from data available on BSE and NSE websites)
+Closing Price of Sun Pharma's shares on BSE
+10 years
+(Source: Compiled from data available on BSE and NSE website)
+571.90
+572.40
+13. DISCLOSURES
+Proposed Resolution to be Conducted through Postal Ballot:
+As directed by the National Company Law Tribunal (NCLT), the
+Company has also provided the facility for voting by way of Postal
+Ballot for the approval of the Scheme of Arrangement among Sun
+Pharma Medisales Pvt Ltd., Ranbaxy Drugs Ltd., Gufic Pharma Ltd.,
+and Sun Pharmaceutical Industries Ltd., vide Notice dated April 26,
+2017 for convening the meeting of the Equity Shareholders and
+their respective shareholders and creditors
+10. Approval for adoption of new set of Articles of
+Association of the Company containing regulations/
+provisions in line with the Companies Act, 2013.
+Approval for increase in maximum limit of remuneration
+to Mr. Sailesh Desai, Whole-time Director, and to
+consider approval for payment of the aforesaid
+remuneration as minimum remuneration with effect from
+April 1, 2016 for the remaining period of his present
+term of appointment upto March 31, 2019, in case
+inadequacy or absence of profits.
+Approval for increase in maximum limit of remuneration
+to Mr. Sudhir Valia, Whole-time Director, and to consider
+approval for payment of the aforesaid remuneration as
+minimum remuneration with effect from April 1, 2016 for
+the remaining period of his present term of appointment
+upto March 31, 2019, in case inadequacy or absence.
+Approval for increase in maximum limit of remuneration
+payable to Mr. Dilip Shanghvi, Managing Director, with
+effect from April 1, 2016 for the remaining period of
+his present term of appointment upto March 31, 2018,
+and to consider approval for payment of the aforesaid
+remuneration as minimum remuneration in case
+inadequacy or absence of profits.
+Approval for ratification of the remuneration payable to
+M/s. Kailash Sankhlecha & Associates, Cost Accountants,
+as the Cost Auditors of the Company for audit of cost
+records maintained by the Company for the financial year
+2016-17.
+9.
+8.
+7.
+6.
+PHARMA
+SUN
+69
+ANNUAL REPORT 2016-17
+▸ No transaction of a material nature has been entered into by
+the Company with Directors or Management and their relatives,
+etc. that may have a potential conflict with the interests of the
+Company. Register of contracts containing transactions, in
+which directors are interested, is placed before the Board of
+Directors regularly. The transaction with the related parties as
+per Ind AS-24, are disclosed in the Annexure "A" attached to the
+Notes forming part of the Standalone Financial Statements for
+the year ended March 31, 2017.
+▸ There were no instances of non-compliance by the Company
+on any matters related to the capital markets or penalties,
+strictures imposed on the Company by the Stock Exchange or
+SEBI or any statutory authority on any matter related to capital
+markets, during the last three years.
+▶The Company has laid down procedures to inform Board
+members about the risk assessment and its minimisation,
+which is periodically reviewed to ensure that risk control is
+exercised by the management effectively.
+The Board of Directors of the Company has approved a
+whistle blower policy/vigil mechanism to monitor the actions
+taken on complaints received under the said policy. This
+policy also outlines the reporting procedure and investigation
+mechanism to be followed in case an employee blows the
+whistle for any wrong-doing in the Company. Employees
+are given protection in two important areas - confidentiality
+and against retaliation. It is ensured that employees can
+raise concerns regarding any violation or potential violation
+easily and free of any fear of retaliation, provided they have
+raised the concern in good faith. An Ombudsperson/s has
+been appointed to receive the complaints through a portal or
+email or letters who would investigate the complaints with an
+investigating committee. The final decision would be taken
+by the Ombudsperson in consultation with the Management
+and the Audit Committee. The Policy is expected to help to
+draw the Company's attention to unethical, inappropriate
+or incompetent conduct which has or may have detrimental
+effects either for the organisation or for those affected by its
+functions. The details of establishment of vigil mechanism are
+available on the website of the Company. No personnel have
+been denied access to the Audit Committee.
+(v)
+(iv) The auditors have issued an unmodified opinion of the
+financial statements of the Company.
+(iii) The Company did not sent half-yearly financial results
+including summary of the significant events in the last
+six months to the household of each shareholder as the
+financial results are published in the newspapers having
+country wise circulation and the same are also posted
+on the website of the Company and the websites of BSE
+and NSE.. However, the Company has started sending
+quarterly results alongwith summary of significant events
+from the 3rd quarter ended December 31, 2016 to the
+shareholders whose e-mail IDs are available with the
+Company. The press release which is widely published
+is also sent to the shareholders and is also put on the
+website of the Company.
+The Chairman of the Company is a Non-Executive
+Director. The Company has provided a separate office
+for the Chairman at the corporate office of the Company
+and the Chairperson is also allowed reimbursement of
+expenses incurred in performance of his duties.
+(ii)
+(i) The Company complies with all the mandatory
+requirements specified under Listing Regulations, 2015.
+▸ Details of compliance and Adoption/Non Adoption of the
+non-mandatory requirements for the year ended March 31,
+Approval for re-appointment of Mr. S Mohanchand
+Dadha (DIN 00087414), as Independent Director of the
+Company for a further term of 2 years, who would not
+be liable to retire by rotation in terms of Section 152(6)
+of Companies Act, 2013.
+FINANCIAL STATEMENTS 80-278
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+70
+▶The Company avails professional consultancy services from
+Makov Associates Ltd, in which Mr. Israel Makov, Non-
+Executive and Non-Independent Director of the Company
+is interested. Other than this, there are no pecuniary
+relationships of the Non-Executive Directors with the
+Company
+▶The policy on dealing with the related party transactions is
+available on the website of the Company and can be accessed
+at http://www.sunpharma.com/policies.
+▸ During the year a separate meeting of the independent
+directors was held on February 14, 2017 inter-alia to review
+the performance of non-independent directors and the board
+as a whole.
+▸ Details of the familiarisation programme of the independent
+directors are available on the website of the Company at
+http://www.sunpharma.com/policies
+08-79
+The Company has separate position for Chairman and
+Managing Director
+Approval for re-appointment of Ms. Rekha Sethi (DIN
+06809515), as Independent Director of the Company
+for a further term of 5 years, who would not be liable
+to retire by rotation in terms of Section 152(6) of
+Companies Act, 2013.
+Approval for re-appointment of Mr. Keki M. Mistry (DIN
+00008886), as Independent Director of the Company
+for a further term of 2 years, who would not be liable
+to retire by rotation in terms of Section 152(6) of
+Companies Act, 2013.
+year over a period of five years from the current financial
+year ending on 31.03.2015 up to and including financial
+year of the Company ending on 31.03.2019 to be
+calculated in accordance with the provisions of Section
+198 of the Companies Act, 2013.
+1.
+Approval for further issue of securities for an aggregate
+amount (inclusive of such premium as may be fixed on
+the securities) not exceeding 120 Billion (Rupees One
+Hundred Twenty Billion only)
+3.
+b)
+Approval under Section 180 (1)(c) of the Companies Act,
+2013 to borrow money on behalf of the Company upto
+a maximum limit of 500 Billion (Rupees Five Hundred
+Billion only).
+2.
+9.
+At Twenty-Second Annual General Meeting:
+Approval under Section 186 of the Companies Act, 2013
+upto a maximum limit of 500 Billion (Rupees Five
+Hundred Billion only).
+1.
+a)
+(ii) Special Resolutions passed during the last three
+Annual General Meetings:
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+Approval to Mr. Aalok D. Shanghvi, who is relative
+of Director to hold office or place of profit under the
+Company for a period of five years from April 1, 2014,
+and remuneration (excluding reimbursement of expenses,
+if any) of 15,000,000/- (Rupees One Crore Fifty Lakhs
+Only) per annum.
+At the Twenty-Third Annual General Meeting.
+Approval for deletion of Clause 135 (bb) of the Articles
+of Association of the Company pursuant to Section 14
+of the Companies Act, 2013.
+4.
+5.
+At the Twenty-Fourth Annual General Meeting.
+Approval for re-appointment of Mr. Ashwin Dani (DIN
+00009126), as Independent Director of the Company
+for a further term of 2 years, who would not be liable
+to retire by rotation in terms of Section 152(6) of
+Companies Act, 2013.
+5.
+4.
+3.
+2.
+1.
+Approval for further issue of securities for an aggregate
+amount (inclusive of such premium as may be fixed on
+the securities) not exceeding 120 Billion (Rupees One
+Hundred Twenty Billion only).
+Approval for re-appointment of Mr. Hasmukh Shah (DIN
+00152195), as Independent Director of the Company
+for a further term of 2 years, who would not be liable
+to retire by rotation in terms of Section 152(6) of
+Companies Act, 2013.
+2.
+Approval by members of the Company accorded for
+Commission paid to the Non-Executive Directors of
+the Company (other than the Managing Director and/
+or Whole-time Directors) for the financial year 2013-
+14 which is in excess of the limits prescribed under
+Companies Act, 1956 in view of the absence of profits
+for financial year 2013-14.
+Approval by members of the Company accorded for
+remuneration paid to Mr. Sailesh T. Desai, Whole-time
+Director, (DIN:00005543), of the Company for the
+financial year 2013-14 which is in excess of the limits
+prescribed under Schedule XIII of the Companies Act,
+1956 in view of the absence of profits for financial year
+2013-14.
+Approval by members of the Company accorded for
+remuneration paid to Mr. Sudhir V. Valia, Whole-time
+Director (DIN: 00005561) of the Company for the
+financial year 2013-14 which is in excess of the limits
+prescribed under Schedule XIII of the Companies Act,
+1956 in view of the absence of profits for financial year
+2013-14.
+Approval by members of the Company accorded for
+remuneration paid to Mr. Dilip S. Shanghvi, Managing
+Director, (DIN:00005588), of the Company for the
+financial year 2013-14 which is in excess of the limits
+prescribed under Schedule XIII of the Companies Act,
+1956 in view of the absence of profits for the financial
+year 2013-14.
+8.
+7.
+6.
+Approval for the payment of Commission to Non-
+Executive Directors of the Company for each financial
+749.00
+(vi) The Internal Auditor reports their findings to the Audit
+Committee of the Company.
+► Website: The Company's website www.sunpharma.com
+contains a separate dedicated section 'INVESTORS' where
+shareholders' information is available. The full Annual
+Report is also available on the website in a user friendly and
+downloadable form. Apart from this, official news releases,
+detailed presentations made to media, analysts etc., and the
+transcript of the conference calls are also displayed on the
+Company's website.
+839.50
+July, 2016
+710.15
+779.35
+710.05
+779.70
+June, 2016
+756.00
+842.00
+757.10
+842.05
+May, 2016
+797.00
+841.15
+797.00
+762.00
+839.80
+762.05
+August, 2016
+750.00
+November, 2016
+732.00
+773.00
+732.00
+772.00
+October, 2016
+840.95
+732.00
+732.00
+818.25
+September, 2016
+746.60
+854.95
+747.00
+854.50
+818.50
+14. MEANS OF COMMUNICATION
+April, 2016
+Month's High Price
+On or before September 29, 2017
+15.4 Dividend Payment Date:
+15.3 Details of Book-closure for Equity Shareholders:
+From Wednesday, September 20, 2017 to Tuesday,
+September 26, 2017. (both days inclusive)
+Results for quarter ending 30th June,
+2017 - Second week of August 2017.
+Results for quarter ending 30th September,
+2017 - Second week of November 2017.
+Results for quarter ending 31st December,
+2017 - Second week of February 2018.
+Audited Results for year ended 31st March,
+2018 - Third or Fourth week of May 2018.
+15.2 Financial Calendar (tentative):
+: Sir Sayajirao Nagargruh, Akota,
+Vadodara 390 020, Gujarat
+Venue
+Date and Time: Tuseday, September 26, 2017 at
+10:45 a.m.
+15. GENERAL SHAREHOLDER INFORMATION
+15.1 Annual General Meeting:
+▸ Corporate Filing: Announcements, Quarterly Results,
+Shareholding Pattern etc. of the Company are regularly filed
+by the Company with the Stock Exchanges and are available
+on the website of BSE Ltd. - www.bseindia.com and National
+Stock Exchange of India Ltd. - www.nseindia.com.
+▸ Reminder to Investors: Reminders for unpaid dividend are
+sent to shareholders as per records every year.
+▸ Chairman's Communique: The Chairman's Speech is placed
+on the website of the Company.
+► Annual Report: Annual Report containing inter alia Audited
+Annual Accounts, Consolidated Financial Statements, Board's
+Report, Auditors' Report, and other important information
+is circulated to Members and others entitled thereto. The
+Management's Discussion and Analysis Report forms part of
+the Annual Report.
+results from the 3rd quarter ended December 31, 2016 to
+the shareholders whose e-mail IDs are registered with the
+Company.
+▸ Financial Results: The annual, half-yearly and quarterly
+results are regularly posted by the Company on its website
+www.sunpharma.com. These are also submitted to the Stock
+Exchanges in accordance with the listing requirements and
+published in all English Editions of "Financial Express' and
+Gujarati Edition of 'Financial Express' which is published in
+Ahmedabad. The Company has started sending quarterly
+15.5 (i) Listing of Equity Shares on Stock Exchanges
+At BSE Limited (BSE) and National Stock Exchange of
+India Limited (NSE)
+ANNUAL REPORT 2016-17
+71
+SUN
+Month's Low Price
+Month's High Price
+National Stock Exchange of India Ltd. (NSE) (in )
+BSE Ltd. (BSE) (in )
+ISIN
+No.INE044A01036
+(b) Demat ISIN Numbers in NSDL and
+CDSL for Equity Shares of ₹1/- each
+Equity Shares of 1/- paid-up value:
+Month's Low Price
+15.7 Stock Market Data -
+SUNPHARMA
+Trading Symbol National Stock
+Exchange (Demat Segment)
+(a) Trading Symbol BSE Ltd.
+(Demat Segment)
+15.6 Stock Code: Equity Shares
+Listing Fees for the financial year 2017-18 have been
+paid to BSE Limited and National Stock Exchange of
+India Limited, where the Company's Equity Shares
+continue to be listed.
+(ii) Payment of Listing Fee
+PHARMA
+524715
+SUNPHARMA
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+15.9 Registrars & Transfer Agent
+Link Intime India Pvt. Ltd.
+Plot No. 1341 & 1342 EPIP-1, Hill Top Industrial Area, Village Bhatolikalan (Barotiwala), Baddi - 174103 (H.P.)
+17. Village & PO Ganguwala, Tehsil Paonta Sahib-173025, Distt. Sirmour (H.P.)
+16.
+Plot No. B-2 Madkaim Industrial Estate, Ponda, Goa
+15.
+14. Sy. No. 16, Ekarajapura, Hoskote, Bengaluru (Karnataka),
+Pharma Manufacturing Industrial Area 3 A.B. Road, Dewas-455001, Madhya Pradesh
+Plot No. K - 5,6,7, Ghirongi Industrial Area, Malanpur, Dist. Bhind, M P.
+A-41, Industrial Area, Phase VIII-A, Sahibzada Ajit Singh Nagar, Mohali-160071 (Punjab)
+13.
+12.
+11.
+10. Village Toansa, P.O. Railmajra Distt. Nawansahar-144533 (Punjab)
+Plot No. Z/15, Sez-1, Po. Dahej, Taluko vagra, Dist. Bharuch, Gujarat.
+9.
+Survey no. 259/15, Dadra - 396191, U.T. of D. & NH.
+18. Village Batamandi, Tehsil Paonta Sahib-173025, Distt. Sirmour (H.P.).
+15.17 Investor Correspondence
+(a) For transfer/dematerialisation of Shares, payment of dividend
+on Shares, and any other query relating to the shares of the
+Company
+For Shares held in Physical Form
+Mumbai 400 063,
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+76
+Mumbai
+Date: May 26, 2017
+Place
+Goregaon-East,
+Western Express Highway,
+8.
+Mr. Sunil R. Ajmera/ Mr. Ashok I. Bhuta/ Mr. Nimish Desai,
+Sun House, Plot No. 201 B/1,
+To the Depository Participant.
+For Shares held in Demat Form
+Fax: 022-49186060
+Tel: 022- 49186000
+E-Mail: RNT.HELPDESK@LINKINTIME.CO.IN
+C 101, 247 Park, LBS Marg, Vikhroli West,
+Mumbai 400 083
+Link Intime India Pvt. Ltd.
+(b) E-mail id designated by the Company for Investor Complaints secretarial@sunpharma.com
+(c) Any query on Annual Report
+sunil.ajmera@sunpharma.com
+Plot No. 817/A, Karkhadi - 391 450, Taluka: Padra, Distt. Vadodara, Gujarat.
+Sathammai Village, Karunkuzhi Post, Maduranthakam T.K. Kanchipuram Dist. Tamil Nadu - 603 303.
+1,107
+8,818
+8,818
+11
+Pharma
+398,557
+1,118
+of *1/- each of Sun
+No. of Shareholders
+No. of equity shares
+Aggregate number of shareholders and the outstanding shares lying in the Unclaimed
+Suspense Account as on March 31, 2017
+11
+Number of shareholders who approached the Company for transfer of shares from the said
+Unclaimed Suspense Account during the period from April 1, 2016 to March 31, 2017
+Number of shareholders to whom shares were transferred from the Unclaimed Suspense
+Account during the said period.
+Aggregate number of shareholders and the outstanding shares lying in the Unclaimed
+Suspense Account as on March 31, 2016
+Particulars
+The status of outstanding unclaimed shares in the Unclaimed Share Suspense Account of the Company is as under:-
+389,739*
+*The voting rights in respect of these shares shall remain frozen till the claim of the rightful shareholders is approved by the Company.
+15.15 Disclosure of commodity price risk and commodity hedging activities
+The Company is exposed to foreign exchange risks emanating from our business, assets and liabilities denominated in foreign
+currency. In order to hedge this risk, the Company proactively uses hedging instruments e.g. forward contracts, options and other
+simple derivatives from time to time. The Company does not have any significant exposure on commodities directly.
+7.
+6.
+5.
+Plot No. 4708, GIDC, Ankleshwar - 393 002, Gujarat.
+4.
+PHARMA
+SUN
+Halol-Baroda Highway, Near Anand Kendra, Halol, Dist. Panchmahal- 389350 Gujarat.
+75
+A-7 & A-8, MIDC Industrial Area, Ahmednagar - 414 111, Maharashtra.
+3.
+Plot No.24/2 and No.25, GIDC, Phase- IV, Panoli - 395 116, Dist. Bharuch, Gujarat.
+2.
+Survey No.214 and 20, Govt. Industrial Area, Phase-II, Piparia, Silvassa – 396 230, U.T. of D & NH.
+1.
+15.16 Plant locations as on March 31, 2017:
+ANNUAL REPORT 2016-17
+Outstanding Unclaimed Shares
+ashok.bhuta@sunpharma.com
+secretarial@sunpharma.com
+Variable compensation: The personnel of the Company
+may be paid remuneration by way of variable salaries
+based on their performance evaluation. Such variable
+salaries should be based on the performance of the
+individual against his short and long term performance
+objectives and the performance of the Company.
+Fixed compensation: The fixed salaries of the Company's
+personnel shall be competitive and based on the
+individual personnel's responsibilities and performance.
+d.
+C.
+b.
+a.
+Components of Remuneration: The following will be the
+various remuneration components which may be paid to the
+personnel of the Company based on the designation and class
+of the personnel.
+B.
+industry benchmarks and standards. The remuneration shall be
+commensurate to retain and motivate the human resources of
+the Company. The compensation package will, inter alia, take
+into account the experience of the personnel, the knowledge
+& skill required including complexity of his job, work duration
+and risks associated with the work, and attitude of the worker
+like, positive outlook, team work, loyalty etc.
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 77
+Guiding Principles for remuneration: The Company shall
+remunerate all its personnel reasonably and sufficiently as per
+A.
+Ensuring that the level and composition of remuneration
+is reasonable and sufficient to attract, retain and
+motivate the all the employees of the Company at
+Share based payments: The Board may, on the
+recommendation of the NRC, issue to certain class of
+personnel a share and share price related incentive
+program.
+Non-monetary benefits: Senior management personnel
+of the Company may, on a case to case basis, be awarded
+customary non-monetary benefits such as discounted
+salary advance / credit facility, rent free accommodation,
+Company cars with or without chauffer's, share and
+share price related incentive, reimbursement of electrify
+and telephone bills etc.
+C.
+V.
+The Board may in consultation with the Nomination and
+Remuneration Committee amend or modify this Policy in
+whole or in part, at any time.
+VI. CHANGE MANAGEMENT
+The Board/ NRC/HR Head may deviate from this Policy if
+there are specific reasons to do so in an individual case.
+Human Resources Head
+POLICY DEVIATION
+Other employees
+Key Managerial Personnel Board on recommendation of the
+NRC
+B.
+Members on recommendation of
+NRC and the Board.
+Director
+Designation/Class
+Entitlement: The authority to determine the entitlement
+to various components as aforesaid for each class and
+designation of personnel shall be as follows:
+Commission: The directors may be paid commission if
+approved by the shareholders. The shareholders may
+authorise the Board to declare commission to be paid to
+any director of the Board.
+Gratuity/group insurance: Personnel may also be
+awarded to group insurance and other key man insurance
+protection. Further as required by the law necessary
+gratuity shall be paid to the personnel.
+f.
+e.
+To be determined by
+nimish.desai@sunpharma.com
+IV. POLICY STATEMENT
+III. APPLICABILITY
+Date: May 26, 2017
+Dilip S. Shanghvi
+Managing Director
+For Sun Pharmaceutical Industries Ltd.,
+I, Dilip S. Shanghvi, Managing Director of Sun Pharmaceutical Industries Limited ("the Company”) hereby declare that, to the best of my
+information, all the Board Members and Senior Management Personnel of the Company have affirmed their compliance and undertaken to
+continue to comply with the Code of Conduct laid down by the Board of Directors of the Company.
+DECLARATION OF COMPLIANCE WITH CODE OF CONDUCT
+ANNEXURE 'A' TO CORPORATE GOVERNANCE FOR THE YEAR ENDED MARCH 31, 2017
+FINANCIAL STATEMENTS 80-278
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+Whole-time Director
+Whole-time Director
+Sailesh T. Desai
+Sudhir V. Valia
+Dilip S. Shanghvi
+Managing Director
+For and on behalf of the Board
+ANNEXURE 'B'
+REMUNERATION POLICY
+I.
+A.
+Improving the overall performance and value of the
+Company by optimum use of its human resources.
+Ensuring the remuneration to directors, key managerial
+personnel and senior management is proportionate to
+the job role & responsibilities and comparable to the
+industrial standards. Variable Incentive pay, if paid to any
+employee, should be linked to the performance of such
+employee and also the Company during such period.
+E.
+D.
+Ensuring that the relationship of remuneration to
+performance is clear and meets appropriate performance
+benchmarks.
+C.
+efforts run and grow the Company successfully.
+This Policy lays down the guiding principle for employment
+agreements entered into/ to be entered into after the approval
+of the Policy and for changes made to existing employment
+agreements hereafter.
+different levels of the organisation to put in their best
+A.
+OBJECTIVES OF THE POLICY
+Legal requirements: Section 178 of the Companies Act, 2013
+and the Listing Agreement entered into by the Company with
+the Stock Exchanges require the Board of Directors ("Board")
+of the Company, on recommendation of the Nomination
+and Remuneration Committee ("NRC"), to formulate a
+policy, relating to the remuneration for the directors, key
+management personnel and other employees.
+Business Need: Retaining, attracting and managing quality
+talent is of critical importance to the Company's intellectual
+property in the knowledge driven global business. This requires
+a communication by the Company that the organisation cares
+for its team and values the growth of its team members.
+This Policy intends to provide clarity & guidance on the
+remuneration payable to the employees of the Company
+including Directors & Key managerial Personnel members of
+senior management and manner or the mechanism in which
+the Company rewards its team.
+NEED FOR THE POLICY
+||
+B.
+Retaining, attracting and managing quality talent.
+(Share transfer and communication regarding share
+certificates, dividends and change of address)
+The details of Number of Stock Options outstanding as on
+March 31, 2017 are provided in the Board's Report.
+The Company does not have any outstanding GDRs/ADRs/
+Warrants/Convertible Instruments as on March 31, 2017.
+0.05
+297
+0.21
+5141237
+0.02
+112
+0.25
+6048830
+0.03
+171
+0.34
+8155772
+0.06
+331
+1.14
+21234831
+0.89
+741
+0.13
+H. Clearing Members
+G. NRIs /OCBS
+F. Directors
+E. Indian Public
+D. Private Corporate Bodies
+C. Banks/Financial Institutions and Insurance Companies
+B. Mutual Funds and UTI
+27356859
+A. Indian Promoters and Persons acting in Concert
+15.12 Shareholding Pattern as on March 31, 2017 of Equity Shares as per Regulation 31 of the Securities Exchange Board of
+India (Listing Obligations and Disclosure Requirements) Regulations 2015.
+100.00
+2399291181
+100.00
+572026
+92.38
+2216470944
+Particulars
+I. Trusts
+0.37
+0.85
+10001 20000
+10000
+5001
+Upto 5000
+No. of equity shares held
+15.11 Distribution of Shareholding as on March 31, 2017
+Presently, the share transfers which are received in physical form are processed and transferred by Registrar and Share Transfer Agents and
+the share certificates are returned within a period of 15 days from the date of receipt, subject to the documents being valid and complete in
+all respects.
+15.10 Share Transfer System
+PHARMA
+SUN
+ANNUAL REPORT 2016-17 73
+Fax: 022-49186060
+Tel: 022-49186000
+E-Mail: RNT.HELPDESK@LINKINTIME.CO.IN
+C 101, 247 Park, LBS Marg, Vikhroli West, Mumbai 400 083
+20001 - 30000
+30001 40000
+40001 50000
+50001
+20391579
+0.50
+2865
+3.94
+94491129
+98.84
+565380
+2129
+% to total shares
+% to total accounts
+Numbers
+Shares of face value *1 each/-
+No. of Accounts
+Total
+100001 and above
+100000
+Number
+Outstanding Stock Options
+J. Foreign Portfolio Investor (Corporate)
+L. Others
+Directors & Relatives
+Indian Public
+Private Corporate Bodies
+Banks/ Financial Institutions and Insurance Companies
+Indian Promoters & Persons Acting in Concert
+Mutual Funds and UTI
+Your Company's equity shares are fairly liquid and are actively
+traded on National Stock Exchange of India Ltd., (NSE) and The
+BSE Ltd.(BSE). Relevant data for the average daily turnover for the
+financial year 2016-17 is given below:
+Liquidity:
+About 99.41% of the outstanding Equity shares have been
+de-materialised up to March 31, 2017. Trading in Shares of the
+Company is permitted only in de-materialised form w.e.f. November
+29, 1999 as per notification issued by the Securities and Exchange
+Board of India (SEBI).
+15.13 Dematerialisation of Shares
+0.29
+0
+[%]
+5.36
+6.84
+3.8
+■NRIS / OCBs
+Clearing Members
+■Trusts
+■Foreign Portfolio Investor (Corporate)
+■Foreign National
+15.14 Outstanding GDRs/ADRs/Warrants or any
+Convertible instruments, conversion date and likely impact
+on equity:
+(Source: Compiled from data available on BSE and NSE website)
+2817.45
+2506.42
+311.03
+BSE + NSE
+3737.98
+NSE
+3313.64
+7.05
+424.34
+(Millions)
+In value terms
+(in Thousands)
+In no. of share
+54.39
+BSE
+■Others
+BSE
+K. Foreign National
+0.19 0.16
+0.58
+3784017
+0.16
+169073716
+7.05
+91079824
+3.80
+164229063
+0.19
+6.84
+5.36
+No. of Shares
+1304855381
+54.39
+Percentage
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+74
+Total
+128559256
+0.07
+4454099
+1770770
+21.28
+SHAREHOLDING PATTERN
+AS ON MARCH 31, 2017
+FINANCIAL STATEMENTS 80-278
+08-79
+STATUTORY REPORTS
+CORPORATE OVERVIEW 01-07
+2399291181
+0.07
+100.00
+0.29
+23000
+0.00
+510650573
+21.28
+13847725
+0.58
+6963757
+2017:
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+88
+Partner
+82
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+ANNEXURE "A"
+(Membership No. 36920)
+TO THE INDEPENDENT AUDITOR'S REPORT
+Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section
+143 of the Companies Act, 2013 ("the Act")
+We have audited the internal financial controls over financial reporting of Sun Pharmaceutical Industries Limited ("the Company") as of 31st
+March, 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
+Management's Responsibility for Internal Financial Controls
+The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over
+financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance
+Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These
+responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively
+for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the
+prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable
+financial information, as required under the Act.
+Auditor's Responsibility
+Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We
+conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by
+the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Act, to the extent
+applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements
+and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was
+established and maintained and if such controls operated effectively in all material respects.
+Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
+financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
+an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
+evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
+auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
+(Referred to in paragraph 1(f) under 'Report on Other Legal and Regulatory Requirements' section of our report
+of even date to the Members of Sun Pharmaceutical Industries Limited)
+We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's
+internal financial controls system over financial reporting.
+RAJESH K. HIRANANDANI
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+PHARMA
+INDEPENDENT AUDITOR'S REPORT
+TO THE MEMBERS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED
+With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and
+Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
+i.
+The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial
+statements - Refer Note 40(i) to the standalone Ind AS financial statements.
+ii.
+(Firm's Registration No. 117366W/W-100018)
+The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable
+losses, if any, on long-term contracts including derivative contracts – Refer Notes 25 and 30 to the standalone Ind AS financial
+statements.
+iii.
+iv.
+There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
+by the Company except a sum of 13.4 Million, which is held in abeyance due to pending legal cases.
+The Company has provided requisite disclosures in Note 56 to the standalone Ind AS financial statements as regards its
+holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated 8th November, 2016 of the
+Ministry of Finance, during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures
+performed and the representations provided to us by the Management of the Company, we report that the disclosures
+are in accordance with the books of account maintained by the Company and as produced to us by the Management of the
+Company.
+As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section
+143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
+Place: Mumbai
+Date: 26th May, 2017
+2.
+Meaning of Internal Financial Controls Over Financial Reporting
+A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
+of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
+principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the
+maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
+(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
+with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
+authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection
+of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
+ANNUAL REPORT 2016-17
+ANNEXURE "B"
+TO THE INDEPENDENT AUDITOR'S REPORT
+(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements' section of our report
+of even date to the Members of Sun Pharmaceutical Industries Limited)
+(i) (a)
+The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
+(b)
+The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three
+years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the
+program, certain fixed assets were physically verified by the Management during the year. According to the information and
+explanations given to us, no material discrepancies were noticed on such verification.
+FINANCIAL STATEMENTS 80-278
+(c) According to the information and explanations given to us and the records examined by us and based on the examination of the
+registered sale deed/transfer deed/conveyance deed/agreement for sale along with registered power of attorney/consent
+terms taken on record by the Honorable Bombay City Civil Court at Bombay/share certificate/other documents evidencing title
+provided to us, we report that, the title deeds, comprising all the immovable properties of freehold land and buildings, are held in
+the name of the Company as at the balance sheet date, except the following:
+Cost or deemed Carrying amount
+cost as at 31st
+March, 2017
+(in Million)
+as at 31st
+March, 2017
+(in Million)
+Remarks
+Freehold land located in Himachal Pradesh
+admeasuring 645,150 Square metres
+Freehold land located in Punjab admeasuring
+76.3
+27.2
+Particulars of the freehold land and building
+08-79
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+(Membership No. 36920)
+83
+SUN
+PHARMA
+ANNEXURE "A"
+TO THE INDEPENDENT AUDITOR'S REPORT
+(Referred to in paragraph 1(f) under 'Report on Other Legal and Regulatory Requirements' section of our report
+of even date to the Members of Sun Pharmaceutical Industries Limited)
+Inherent Limitations of Internal Financial Controls Over Financial Reporting
+Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
+management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control
+over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
+procedures may deteriorate.
+Opinion
+In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an
+adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating
+effectively as at 31st March, 2017, based on the internal control over financial reporting criteria established by the Company considering the
+essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued
+by the Institute of Chartered Accountants of India.
+Date: 26th May, 2017
+84
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+(Firm's Registration No. 117366W/W-100018)
+RAJESH K. HIRANANDANI
+Partner
+SUN
+370,527 Square metres
+81
+With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating
+effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the
+adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.
+Standards on Auditing specified under Section 143(10) of the
+Companies Act 2013, in so far as applicable for the purpose
+of this certificate and as per the Guidance Note on Reports
+or Certificates for Special Purposes issued by the ICAI which
+requires that we comply with the ethical requirements of the
+Code of Ethics issued by the ICAI.
+We have complied with the relevant applicable requirements
+of the Standard on Quality Control (SQC) 1, Quality Control for
+Firms that Perform Audits and Reviews of Historical Financial
+Information, and Other Assurance and Related Services
+Engagements.
+Opinion
+8.
+9.
+Based on our examination of the relevant records and
+according to the information and explanations provided to
+us and the representations provided by the Management
+of the Company, we certify that the Company has complied
+with the conditions of Corporate Governance as stipulated in
+regulations 17 to 27 and clauses (b) to (i) of regulation 46(2)
+and para C and D of Schedule V of the Listing Regulations
+during the year ended March 31, 2017.
+We state that such compliance is neither an assurance as
+to the future viability of the Company nor the efficiency or
+effectiveness with which the Management has conducted the
+affairs of the Company.
+7.
+For DELOITTE HASKINS & SELLS LLP
+Chartered Accountants
+Rajesh K. Hiranandani
+Partner
+(Membership No. 36920)
+Place: Mumbai
+Date: May 26, 2017
+ANNUAL REPORT 2016-17
+79
+SUN
+PHARMA
+(Firm's Registration No. 117366W/W-100018)
+INDEPENDENT AUDITOR'S REPORT
+We have carried out an examination of the relevant records
+of the Company in accordance with the Guidance Note on
+Certification of Corporate Governance issued by the Institute
+of the Chartered Accountants of India ("the ICAI"), the
+Our responsibility is limited to examining the procedures and
+implementation thereof, adopted by the Company for ensuring
+compliance with the conditions of the Corporate Governance.
+It is neither an audit nor an expression of opinion on the
+financial statements of the Company.
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+08-79 FINANCIAL STATEMENTS 80-278
+Independent Auditor's Certificate on Corporate Governance
+TO THE MEMBERS OF
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+1.
+2.
+We have examined the books of account and other relevant
+records and documents maintained by the Company for the
+purposes of providing reasonable assurance on the compliance
+with Corporate Governance requirements by the Company.
+This certificate is issued in accordance with the terms of our
+engagement letter dated October 18, 2016.
+Managements' Responsibility
+3.
+The compliance of the conditions of Corporate Governance
+is the responsibility of the Management. This responsibility
+includes the design, implementation and maintenance of
+internal control and procedures to ensure the compliance with
+the conditions of Corporate Governance stipulated in Listing
+Regulations.
+Auditor's Responsibility
+4.
+5.
+6.
+We, Deloitte Haskins & Sells LLP, Chartered Accountants, the
+Statutory Auditors of SUN PHARMACEUTICAL INDUSTRIES
+LIMITED ("the Company"), have examined the compliance of
+the conditions of Corporate Governance by the Company, for
+the year ended on March 31, 2017, as stipulated in regulations
+17 to 27 and clauses (b) to (i) of regulation 46(2) and para C
+and D of Schedule V of the Securities and Exchange Board
+of India (Listing Obligations and Disclosure Requirements)
+Regulations, 2015("the Listing Regulations").
+TO THE MEMBERS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Report on the Standalone Ind AS Financial Statements
+We have audited the accompanying standalone Ind AS financial statements of Sun Pharmaceutical Industries Limited ("the Company"), which
+comprise the Balance Sheet as at 31st March, 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash
+Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and
+other explanatory information.
+Our opinion is not modified in respect of this matter.
+Other Matter
+The transition date opening balance sheet of the Company as at 1st April, 2015 include the financial information of erstwhile Ranbaxy
+Laboratories Limited, consequent to its amalgamation into the Company which was effected on 24th March, 2015, with the appointed date of
+1st April, 2014 [refer Note 59(4) to the standalone Ind AS financial statements]. The said financial information included in these standalone
+Ind AS financial statements are based on financial information previously prepared in accordance with the Companies (Accounting Standards)
+Rules, 2006, audited by the other auditors, and have been restated to comply with Ind AS. Adjustments made to the financial information
+previously prepared in accordance with the Companies (Accounting Standards) Rules, 2006 to comply with Ind AS have been audited by us.
+Our opinion is not modified in respect of this matter.
+Report on Other Legal and Regulatory Requirements
+1.
+As required by Section 143(3) of the Act, based on our audit we report, to the extent applicable that:
+We draw attention to Note 59(11) to the standalone Ind AS financial statements. As referred to in the said Note: Remuneration to the
+Managing Director and the Whole-time Director(s) of the Company for the years ended 31st March, 2015, 31st March, 2016 and 31st March,
+2017 are higher by 49.6 Million, 29.6 Million and * 44.7 Million respectively than the amounts approved by the Central Government
+of India (Ministry of Corporate Affairs) on applications made by the Company to approve the maximum remuneration as approved by the
+members of the Company for the three years ended 31st March, 2017, in excess of the limits specified under Schedule V to the Act, in case
+of inadequacy of profits. The Management of the Company have re-represented to the office of the Ministry of Corporate Affairs for approval
+of remuneration within the overall limits approved by the members of the Company for the years ended 31st March, 2015 and 31st March,
+2016, and for the year ended 31st March, 2017, applications for revision in the remuneration, as approved by the members of the Company,
+has been made to the Ministry of Corporate Affairs. The responses in respect of the foregoing re-representation/applications for revision
+are awaited from the Ministry of Corporate Affairs.
+a)
+We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
+for the purposes of our audit.
+In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
+examination of those books.
+d)
+The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and
+Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
+In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed
+under Section 133 of the Act.
+On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of
+Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164(2)
+of the Act.
+f)
+b)
+Emphasis of Matter
+TO THE MEMBERS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED
+INDEPENDENT AUDITOR'S REPORT
+Management's Responsibility for the Standalone Ind AS Financial Statements
+The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
+to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance
+including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles
+generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
+This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the
+assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting
+policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
+internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant
+to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material
+misstatement, whether due to fraud or error.
+Auditor's Responsibility
+Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
+In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are
+required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
+We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section
+143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
+assurance about whether the standalone Ind AS financial statements are free from material misstatement.
+An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial
+statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of
+the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal
+financial control relevant to the Company's preparation of the standalone Ind AS financial statements that give a true and fair view in order
+to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting
+policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall
+presentation of the standalone Ind AS financial statements.
+We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind
+AS financial statements.
+Opinion
+In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial
+statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting
+principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017, and its loss, total comprehensive loss, its
+cash flows and the changes in equity for the year ended on that date.
+80
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+CORPORATE OVERVIEW 01-07
+STATUTORY REPORTS
+08-79
+FINANCIAL STATEMENTS 80-278
+ANNUAL REPORT 2016-17
+Freehold land located in Haryana admeasuring
+Place: Mumbai
+64,161 Square metres
+27,193.9
+11,828.5
+1999-00, 2000-01, 2003-04, 2004-
+05, 2013-14 and 2014-15
+24.8
+2.1
+109.0
+7.2
+1995-96 and 2007-08 to 2011-12
+3.1
+1998-99 to 2003-04, 2008-09 and
+6.1
+2.3
+2014-15
+High Court
+Entry Tax
+1999-00, 2001-02 to 2003-04 and
+2014-15
+Tribunal
+Income Tax Appellate
+Tribunal (ITAT)
+Assistant / Additional/
+Senior Joint Commissioner
+Appellate Authority
+States)
+PHARMA
+ANNEXURE "B"
+TO THE INDEPENDENT AUDITOR'S REPORT
+(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements' section of our report
+of even date to the Members of Sun Pharmaceutical Industries Limited)
+Name of
+Statute
+Nature of Dues
+Forum where dispute is
+pending
+Period to which the amount relates
+Amount
+involved
+(in Million)#
+Income Tax Act, Income Tax,
+1961
+Commissioner (Appeals)
+Interest and
+Penalty
+2003-04, 2005-06, 2006-07, 2010-
+11 and 2012-13
+2,617.2
+Amount paid /
+adjusted under
+protest
+(in Million)
+3,923.6
+Sales Tax Act/
+VAT (Various
+Sales Tax, Interest
+and Penalty
+53.2
+SUN
+6.4
+2009-10
+2002-03 to 2014-15
+49.7
+6.8
+13.8
+10.8
+118.7
+4.2
+2002-03 to 2014-15
+50.2
+1,783.6
+70.9
+449.5
+9.7
+(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans
+or borrowings to financial institutions, banks and government. The Company has not issued any debentures.
+(ix) In our opinion and according to the information and explanations given to us, money raised by way of the term loans have been applied
+by the Company during the year for the purposes for which they were raised. The Company has not raised money by way of initial
+public offer, further public offer (including debt instruments) during the year.
+(x)
+To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material
+fraud on the Company by its officers or employees has been noticed or reported during the year.
+5.3
+2001-02 to 2015-16
+# Net of amount paid / adjusted under protest
+High Court
+2.5
+The Central
+Excise Act,
+1944
+Customs Act,
+1962
+Service Tax
+Customs Duty,
+Penalty and
+Interest
+Madhya Pradesh
+Commercial Tax Appellate
+Board
+Customs, Excise and
+Service Tax Appellate
+Tribunal (CESTAT), Delhi
+Commissioner (Appeals)
+2006 to 2015
+2014-15
+CESTAT
+2015-16
+The Central
+Excise Act,
+1944
+Excise Duty,
+Interest and
+Penalty
+Settlement Commission
+2000-01
+Commissioner
+(Appeals)
+Tribunal
+2005-06 to 2010-11
+87
+1998-99, 2008-09, 2012-13 to
+Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty and Value added Tax which have not been
+deposited as at 31st March, 2017 on account of disputes, are given below:
+PHARMA
+ANNEXURE "B"
+TO THE INDEPENDENT AUDITOR'S REPORT
+(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements' section of our report
+of even date to the Members of Sun Pharmaceutical Industries Limited)
+entitling the right of occupancy and use of building, are in the name of the Company as at the balance sheet date.
+In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed assets in the standalone
+Ind AS financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement,
+except for the following:
+Particulars of the leasehold land
+SUN
+Cost or deemed Carrying amount
+March, 2017
+(in Million)
+as at 31st
+March, 2017
+(in Million)
+Remarks
+* 17.4
+(ii)
+Located in Maharashtra admeasuring
+cost as at 31st
+20,000 Square metres.
+85
+In respect of a building where the Company is entitled to the right of occupancy and use and disclosed as fixed assets in the standalone
+Ind AS financial statements, we report that the agreement / non-convertible preference shares/compulsorily convertible debentures
+76.3 The title deeds are in the name of Ranbaxy
+Laboratories Limited, erstwhile company that
+27.2 was merged with the Company under Sections
+391 to 394 of the Companies Act, 1956 in
+109.0 terms of the approval of the Honorable High
+Courts of Gujarat and of Punjab and Haryana.
+Freehold land located in Madhya Pradesh
+5.8
+5.8
+admeasuring 91,330 Square metres
+Freehold land located in Karnataka
+28.3
+ANNUAL REPORT 2016-17
+28.3
+Freehold land located in Punjab admeasuring
+ANNUAL REPORT 2016-17
+8,364 Square metres
+Freehold land located in Chennai admeasuring
+71,747 Square metres and building thereon
+11.3
+2.5 The title of this land is under dispute in
+respect of which we have been informed
+by the Management of the Company that
+they have filed a Special Leave Petition with
+the Honorable Supreme Court against the
+order passed by the Honorable High Court of
+Punjab and Haryana and the matter is under
+adjudication.
+10.2 The titles are in the name of Tamilnadu Dadha
+Pharmaceuticals Limited / Pradeep Drug
+Company Limited, erstwhile companies that was
+merged with the Company under Sections 391
+to 394 of the Companies Act, 1956 in terms of
+the approval of the Honorable High Courts of
+Gujarat and of Tamilnadu/order of the New
+Delhi Bench of Board of Industrial and Financial
+Reconstruction respectively.
+admeasuring 30,362 Square metres
+*represents composite consideration for
+2.5
+Located in Goa admeasuring 18,450 Square
+metres
+FINANCIAL STATEMENTS 80-278
+ANNEXURE "B"
+TO THE INDEPENDENT AUDITOR'S REPORT
+(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements' section of our report
+of even date to the Members of Sun Pharmaceutical Industries Limited)
+(c)
+There is no overdue amount remaining outstanding as at the balance sheet date except in respect of amounts of 512.0 Million
+and * 199.1 Million of principal and interest respectively, aggregating to 711.1 Million, given to an associate, which has been
+overdue for more than 90 days, where there is no evidence of reasonable steps having been taken for the recovery of the
+principal outstanding or interest receivable. As represented by the Management of the Company, the Company is evaluating
+various options to recover its dues in respect of the principal amount and interest.
+Refer Note 59(1) to the standalone Ind AS financial statements.
+08-79
+(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section
+186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable. During the year,
+the Company has not granted any loans covered under Section 185 of the Act.
+In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from
+the public in accordance with the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed
+thereunder and hence reporting under clause (v) of paragraph 3 of the Order is not applicable.
+(vii) According to the information and explanations given to us, in respect of statutory dues:
+(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees' State
+Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value added Tax, Cess and other material statutory dues
+applicable to it with the appropriate authorities, though there have been slight delays in few cases.
+(b)
+(c)
+There were no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income-tax, Sales Tax,
+Service Tax, Customs Duty, Excise Duty, Value added Tax, Cess and other material statutory dues in arrears as at 31st March,
+2017 for a period of more than six months from the date they became payable.
+land and building.
+(v)
+CORPORATE OVERVIEW 01-07 STATUTORY REPORTS
+(vi) The maintenance of cost records has been specified by the Central Government under sub-section (1) of Section 148 of the Act. We have
+broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended,
+prescribed by the Central Government under sub-section (1) of Section 148 of the Act, and are of the opinion that, prima facie, the prescribed
+cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to
+determine whether they are accurate or complete.
+222.4
+Located in Punjab admeasuring 323,866
+Square metres
+213.2
+Located in Madhya Pradesh admeasuring
+630,552 Square metres
+Located in Gujarat admeasuring 24,000
+Square metres
+2.7
+0.7
+208.3 The lease agreements are in the name of Ranbaxy
+Laboratories Limited, erstwhile company that was
+217.8 merged with the Company under Sections 391 to
+394 of the Companies Act, 1956 in terms of the
+approval of the Honorable High Courts of Gujarat
+and of Punjab and Haryana.
+0.6 The lease agreement is in the name of Gujarat Lyca
+Limited, erstwhile company that was merged with
+the Company under Sections 391 to 394 of the
+Companies Act, 1956 in terms of the approval of
+the Honorable High Court of Gujarat.
+16.6 The lease agreements are in the name of
+Crosslands Research Laboratories Limited which
+was merged with Ranbaxy Laboratories Limited,
+erstwhile company that was merged with the
+2.6 Company under Sections 391 to 394 of the
+Companies Act, 1956 in terms of the approval
+of the Honorable High Courts of Gujarat and of
+Punjab and Haryana.
+As explained to us, the inventories, excluding stocks with some of the third parties, were physically verified during the year by the
+Management at reasonable intervals and no material discrepancies were noticed on physical verification. In respect of inventories lying
+with third parties, these have substantially been confirmed by them.
+(iii) In respect of loans, secured or unsecured, granted by the Company to companies, firms, Limited Liability Partnerships or other parties
+covered in the register maintained under Section 189 of the Companies Act, 2013 ("the Act"):
+(a)
+In our opinion and according to the information given to us, the terms and conditions of the grant of such loan is, in our opinion,
+prima facie, not prejudicial to the interest of the Company.
+(b)
+In respect of loans granted to a wholly owned subsidiary, where the aggregate amount involved is ₹ 4.8 Million (including interest
+accrued), the repayments or receipts of principal amounts and interest, where due during the year, have been regular as per
+stipulations and in respect of loans granted to an associate, there is no repayment or receipt of the principal amount of 512.0
+Million and the interest thereon of 214.9 Million, which are overdue as per the stipulations.
+86
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+R&D Investment
+18.9
+9.0
+29.0
+18.9
+Adjusted Earning Per Share
+23,025
+FY09 44,808
+FY10 42,123
+13.1
+FY11 60,827
+$23,138
+19,550
+12.4
+* During FY11, each equity share of 5 was split into five equity shares of *1 each.
+FY11 7.5
+FY105.6
+FY09 7.8
+The Company has adopted Ind-AS accounting standards with effect from 01 April, 2015. Hence, FY16 onwards, the financials are reported as per Ind-AS
+and are not strictly comparable with previous years. For FY15, the balance sheet items are as per Ind-AS.
+* During FY16, the Company's equity shares have increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the Company,
+wherein 0.80 equity share of ₹1 each of the Company have been allotted to the shareholders of RLL for every 1 share of *5 each held by them.
+* During FY14, the Company issued bonus shares in the ratio of one equity share of *1 for every share held.
+157,111
+149,404
+124,130
+(post exceptional items)*
+22,489
+(in Million)
+11.0
+FY09 69,414
+FY11 18,161
+FY11 93,798
+other Intangible assets
+Reserve & Surplus
+148,862
+166,326
+116,880
+279,397
+291,453
+322,016
+273,282
+3 3 3 3 3 3
+18,780
+13,470
+45,394
+45,457
+69,644
+3 3 3 3 3 3 3 3 3 3
+Net Profit after Minority Interest
+(in Million)
+Indicators (Consolidated)
+Key Performance
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+Total Income
+(in Million)
+FY12 84,910
+121,322
+(per Share)
+FY10 77,254
+Carrying value of Property, Plant & Equipment and
+8
+3 3 3 3 3 3
+Statements
+Financial
+Standalone
+65
+Discussion and
+Management
+06
+24
+03
+Analysis
+Indicators
+Key Performance
+02
+Contents
+The current financial year is likely to be a very important year in
+this journey with the potential launch of key specialty products in
+the US market. We are reinforcing our global specialty business with
+focused investments and strategies; and in the long-term, we expect
+the contribution of specialty products to increase substantially in our
+overall business.
+We are meticulously nurturing the specialty business; and have built a
+portfolio of about 10 specialty products, of which five are already
+in the market, two more likely to be commercialised in the next few
+quarters; and two more awaiting USFDA approval.
+At Sun Pharma, we have identified specialty as an additional growth
+engine; and a means to move up the pharmaceutical value chain
+through development and global commercialisation of branded
+patented products. We have invested significant resources in this
+initiative in the past; and will continue to invest in building the business
+further in the coming years.
+Given the shifting dynamics of the global pharmaceutical market,
+progressive investments in innovative specialty products show the way
+forward for us.
+Nurturing Specialty Growth
+PHARMA
+SUN
+SPECIALTY
+GROWTH
+NURTURING
+Reaching People. Touching Lives.
+ANNUAL REPORT 2017-18
+SUN PHARMACEUTICAL INDUSTRIES LTD.
+183,178
+129
+Ten-Year Financial
+Board's
+Consolidated
+FY12 4,449
+FY11 3,313
+FY10 2,242
+FY09 3,320
+96,848
+49,827
+FY13 45,145
+FY12 29,295
+FY11 25,214
+FY10 15,328
+FY09 14,625
+2
+The cover design of this year's annual
+report focuses on the theme of 'Nurturing
+Specialty Growth'. The visual treatment
+to help convey this sentiment has been
+developed around the idea of connectivity,
+direction, the sum of parts, particles, and
+science being the cornerstone of any
+development and future growth.
+10,418
+Reaching People Touching Lives
+NURTURING
+SPECIALTY
+GROWTH
+Governance
+Notice
+Corporate
+Director's Letter
+Managing
+219
+49
+04
+Statements
+Financial
+Report
+Highlights
+SUN
+278,009
+7,042
+363,997
+Oncology
+Therapy areas
+Table 2 Leading therapy-wise spending and growth in selected developed and pharmerging markets²
+Developed markets
+Pharmerging markets
+Rest of the world
+Pharmerging markets
+Rest of the world
+Developed markets
+Rest of the world
+Pharmerging markets
+Developed markets
+65%
+Total value
+US$
+1,415-1,445
+Billion
+66%
+25%
+Total value
+US$
+1,135 Billion
+73%
+725 Billion
+24%
+327,418
+15%
+2022
+10%
+MANAGEMENT DISCUSSION AND ANALYSIS
+2017
+Diabetes
+Pain
+Autoimmune
+Respiratory
+65-75
+2-5%
+80-95
+8-11%
+105-115
+7-10%
+2022 2017-22 CAGR
+115-130
+11.8%
+2012-17 CAGR
+(US$ Billion)
+16.8%
+10%
+5.7%
+47.5
+76.1
+72.2
+81.1
+2017
+All other therapies
+Antivirals
+Mental health
+HIV
+Cardiovascular
+Antibiotics & vaccines
+16.9%
+12%
+2007
+Chart 2 Global spending by region²
+915-945
+2018-22
+CAGR
+CAGR
+5.8%
+753.2
+Developed Markets
+2022
+2017
+Regions
+2013-17
+(US$ Billion)
+Table 1 Global pharmaceutical spending and growth²
+2-5%
+Forecast
+Spending
+200
+400
+600
+800
+1,000
+1,200
+1,400
+1,600
+Chart 1 Global medicine spending and growth 2007-20222
+In developed markets, ageing population and development of new specialty medicines will
+continue to drive pharmaceutical growth. In developing nations, growing population and
+rising disposable incomes among the middle-class, increasing aspirations for better healthcare
+and gradually increasing penetration of insurance coverage will drive the growth momentum.
+Spending (US$ Billion) → Growth (%)
+7-10%
+Pharmerging Markets
+9.7%
+ANNUAL REPORT 2017-18
+Growth in Constant US$
+0%
+1%
+2%
+3%
+4%
+5%
+6%
+7%
+8%
+269.6
+9%
+3-6%
+6.2% 1,415-1,445
+1,135.1
+Global Pharmaceutical Market
+2-5%
+125-155
+2.0%
+112.3
+Other Markets
+6-9%
+345-375
+10%
+40-50
+2-5%
+40-48
+The global generics market is estimated to grow at 5% CAGR for
+the 2017-22 period to reach US$ 104 Billion by 2022. Governments
+worldwide are facing pressures of rising healthcare costs, thus
+emphasising on the importance of generics and their role in making
+pharmaceutical products affordable to those in need. Patent expiry
+for branded drugs in developed markets has a bearing on the
+potential of generics in those markets. In the emerging world, the
+branded generics markets will be driven primarily by rising per capita
+incomes, increasing healthcare awareness and enhanced incidence of
+chronic ailments.
+Global generics market³
+Unbranded
+Other products
+Original brands
+Non-original brands
+40%
+27%
+Original brands
+Non-original brands
+Unbranded
+Other products
+Non-original brands
+Unbranded
+Other products
+Original brands
+Other products
+Unbranded
+Chart 4 Global generics market growth³
+Non-original brands
+28%
+51%
+Total
+US$ Billion
+125-155
+Rest of world
+14%
+8%
+25%
+14%
+64%
+14%
+Total
+US$ Billion
+345-375
+Original brands
+Total
+US$ Billion
+915-945
+(US$ Billion)
+100
+In developing markets, besides growing populations, the
+pharmaceutical industry will benefit from higher incomes of
+consumers. The entry of wearables in the global market will
+facilitate access to accurate, real-world data. Subsequently, the
+quality of diagnostic services will improve thus leading to increased
+pharmaceutical consumption.
+Changing lifestyles will increasingly make chronic diseases a global
+health issue. Developed markets growth will be driven by ageing
+population and adoption of emerging medical technologies.
+Outlook
+Empowered by technological advances such as mobile apps,
+wearable healthcare devices and greater awareness, patients are
+increasingly taking better and more well-informed healthcare
+choices.
+Technology
+Governments, particularly in emerging economies, are shifting
+towards affordable, universal healthcare with reduced out-of-pocket
+spending for patients. Although they deepen market access, the
+cost-containment policies of governments will neutralise some of
+these gains for the pharmaceutical industry.
+Cost controls
+Individual lifestyle choices are increasingly affected by stress,
+resulting in higher risk for obesity, hypertension, depression, diabetes
+and cardiovascular problems. Moreover, with rise in disposable
+incomes for global middle-class families, the demand for better
+healthcare is gradually increasing.
+Changing lifestyles
+Rising air and water pollution is resulting in increased incidence of
+various diseases, leading to higher pharmaceutical consumption.
+Rising pollution
+104
+Global population is likely to cross 9.3 Billion by 2050 and the
+proportion of individuals aged 60 and above will account for 21%
+of it. The growing average life expectancy has been accompanied
+by a rise in different diseases, leading to the deployment of more
+resources for research and innovation to improve the quality of life
+for an ageing population.
+Growth enablers of global pharmaceutical industry4
+2022E
+2021E
+2020E
+2019E
+2018E
+2017
+84
+81
+89
+95
+Ageing population
+at an average CAGR of
+3-6% from US$ 1.13
+Trillion in 2017.
+22%
+8%
+25%
+23.8
+-2.6%
+36.1
+11.5%
+26.7
+-1.8%
+40.6
+3.2%
+4.8%
+38.3
+368.3
+38.5
+3-6%
+445-460
+(-7)-(-4)%
+16-20
+(-2)-1%
+32-38
+5-8%
+32-40
+(-2)-1%
+36-44
+1-4%
+1111
+Pharmerging markets
+5.1%
+Emerging trends for 2018-221
+14%
+1,415-1,445
+US$ Billion
+44%
+Total
+13%
+15%
+Developed markets
+Global markets
+Chart 3 Global medicine spending by product type in 20222
+PHARMA
+Selected Developed and Pharmerging Markets: Includes 8 Developed and 6 Pharmerging countries of the US, France, Germany, Italy, Spain, UK, Japan, Canada,
+China, Brazil Russia, India, Turkey and Mexico
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+spending in these markets is likely to grow at 6-9% CAGR for 2018- the global healthcare industry.
+Innovation in new drug development,
+immunotherapy, next generation
+biotherapeutics, including cell-based
+gene therapies and digital health tools
+will gain importance in the future of
+Generic medicines will continue to be an important part of the
+efforts to reduce overall global healthcare costs.
+Innovation in new drug development, immunotherapy, next
+generation biotherapeutics, including cell-based gene therapies
+and digital health tools will gain importance in the future of the
+global healthcare industry.
+•
+•
+• For pharmerging markets, policies designed to achieve universal
+healthcare will be an intricate formula that induces investment,
+while protecting affordability. However, sluggish economic
+conditions in these markets and relatively higher out-of-pocket
+costs for patients will offset some of the gains in access. Medicine
+• The requirement to replenish product portfolios impacted by
+patent expiries will continue to drive acquisitions and in-licensing
+for the specialty segment.
+Specialty medicines will drive medicine spending in developed
+markets, partly offsetting the decline in spending on traditional
+medicines.
+.
+Pharmaceutical spending in developed markets is likely to grow at
+2-5% CAGR between 2018-22 compared to 5.8% in the 2013-17
+period. While launch of innovative products is likely to drive growth,
+is expected to be balanced by patent expiries of existing products.
+22 compared to nearly 10% for the 2013-17 period.
+The global spending on medicines is expected to reach over US$ 1.4 Trillion by 2022, growing
+at an average compound annual growth rate (CAGR) of 3-6% from US$ 1.13 Trillion in 2017.
+Demographic changes in population and advances in medical treatments are expected to
+translate into a rise in spending. Innovation in medicines, along with economic progress, will
+result in a rise in volume for the pharmaceutical industry. Market growth is likely to occur
+Total value
+US$
+Global pharmaceutical industry¹
+1,036
+1,036
+77,254 93,798
+23,340 45,473
+21,476
+Property, Plant &
+69,414
+Reserve and Surplus
+1,036
+Equity Share Capital
+Financial Position
+8.6%
+7.6%
+8.3%
+7.2%
+6.5%
+6.3%
+5.6%
+6.0%
+6.0%
+8.0%
+c) % of Turnover
+Depreciation)
+20,669
+1,819
+1,036
+121,322
+54,269
+1,036
+148,862
+75,763
+2,071
+183,178
+86,505
+Number of Shares
+Stock Information
+27,860 35,028 18,299 11,919 71,429
+126,969 135,488 167,973 150,666 117,716
+22,129 24,116
+76,749 86,618
+18,595 31,664 26,557
+35,485 28,542 58,622
+Net Current Assets
+Investments
+Intangible assets
+Equipment and other
+Property, Plant &
+149,404 157,111
+22,489
+96,848 124,130
+45,145
+29,295
+15,328 25,214
+14,625
+Carrying value of
+deemed cost)
+Intangible assets (at cost/
+Equipment and other
+2,399
+2,407
+2,399
+327,418 363,997 378,606
+143,616 187,212 217,315 238,073
+2,071
+278,009
+49,827
+23,138
+1,679
+21,459
+23,025
+783
+22,242
+19,550
+1,178
+18,373
+80,195 112,999
+57,279
+43,751 38,086
+Revenue from
+Operating Performance
+FY18
+FY17
+FY16
+FY15
+FY14
+FY13
+160,804 273,920 284,870 315,784
+FY12
+FY10
+FY09
+Particular
+(in Million)
+TEN-YEAR FINANCIAL HIGHLIGHTS
+Financial Highlights (Consolidated)
+Ten-Year
+ANNUAL REPORT 2017-18
+(in Million)
+(in Million)
+378,606
+FY11
+207
+264,895
+Total Income
+10,418
+556
+9,862
+6,616
+4,088
+3,077
+2,083
+3,098
+The global spending on
+medicines is expected
+to reach over US$ 1.4
+Trillion by 2022, growing concurrently with greater pharmaceutical cost controls, improving access and affordability.
+427
+362
+236
+159
+Operations
+222
+7,042
+4,449
+2,242 3,313
+3,320
+R&D Expenditure
+(after minority interest)
+291,453 322,016 273,282
+45,457 69,644 21,616
+166,326 279,397
+31,415 45,394
+42,123 60,827 84,910 116,880
+13,470 18,161 26,567 29,831
+44,808
+18,780
+Net Profit for the year
+a) Capital
+207
+b) Revenue (Excluding
+1,036
+•
+• Post the close of the year, we announced USFDA approval for
+YonsaⓇ (abiraterone acetate), a novel formulation in combination
+with methylprednisolone, for the treatment of patients with
+metastatic castration-resistant prostate cancer (mCRPC). Sun
+Pharma had acquired YonsaⓇ from Churchill Pharmaceuticals LLC.
+Churchill is eligible to receive upfront and sales-linked milestone
+payments, and royalties on sales from Sun Pharma. YonsaⓇ in
+combination with methylprednisolone was filed as a New Drug
+Application (NDA) under the 505(b)(2) regulatory pathway and will
+be promoted as a branded specialty product in the US. Sun Pharma
+has already commercialised YonsaⓇ in the US market.
+Our New Drug Application (NDA) for OTX-101 was accepted by
+USFDA in December 2017. This is an important product for Sun
+Pharma's specialty ophthalmology portfolio. We are awaiting final
+approval for this product from the USFDA.
+The USFDA approved our Biologics Licence Application (BLA) for
+llumya in March 2018. Ilumya is an IL-23p19 inhibitor approved
+for the treatment of moderate-to-severe plaque psoriasis in the
+US. Launch preparations for llumya are ongoing for a potential
+commercialisation in the US in FY19. llumya was also filed with the
+European Medicines Agency (EMA) in March 2017. EMA's approval
+for llumya is awaited.
+•
+approval for llumya in the US. We also focused on building the relevant
+front-end presence in the US for marketing and promoting our specialty
+products. Some of the key highlights for the year were:
+MANAGING DIRECTOR'S LETTER
+ANNUAL REPORT 2017-18
+4
+FY18 was a busy year for our specialty business and we crossed many
+important milestones. We filed two of our important products - llumya
+(Tildrakizumab) and OTX-101 with the USFDA and also received final
+Commercialisation of key specialty products
+•
+Over the past two years, we have also focused on establishing the
+requisite front-end capabilities for our specialty business. This involves
+setting up a relevant sales force (for promoting these products to
+doctors), establishing the required regulatory and market access teams,
+along with support staff.
+Our specialty initiatives are directed at achieving two main objectives
+- to build an additional engine of future growth and secondly to
+move up the pharmaceutical value chain through development and
+commercialisation of branded patented products. While we intend to
+target the global market with our specialty products, developed markets
+are likely to be key contributors to this strategy.
+Our journey of building a global specialty business commenced a few
+years ago, and over the years, we have nurtured this evolving business
+through increased focus and investments. We have allocated significant
+resources in building the specialty business.
+Nurturing specialty growth
+R&D is the backbone of our business and a key determinant of
+our future growth and profitability. Our efforts to move up the
+pharmaceutical value chain mandate that we keep investing in R&D.
+Our R&D investments for the year were 22 Billion, targeted mainly at
+developing complex generics and specialty products. We continue to be
+disciplined in identifying future R&D projects for the generics market
+while simultaneously investing in developing a global specialty portfolio.
+We are also investing in enhancing our product pipeline for emerging
+markets and other non-US developed markets.
+R&D
+We grew by 11% in emerging markets for the year. This growth was
+broad-based across various markets. Our sales in the Rest of World
+(ROW) markets grew by 20% for the year.
+We recorded a 4% growth in our India formulations business. Overall
+growth for the domestic market was impacted by the temporary
+disruption in the trade channel due to the implementation of the Goods
+& Services Tax (GST) during the year. Adjusted for this impact, our India
+revenues have grown by about 9%.
+Revenues in the US declined 34% to US$ 1.36 Billion due to higher base
+of FY17 wherein we had the benefit of 180-day exclusivity on generic
+Imatinib. Our subsidiary Taro recorded 25% decline in overall revenues
+for the year. This decline was mainly driven by more intense competition
+among manufacturers, new entrants to the market, buying consortium
+pressures, and a higher ANDA approval rate from the USFDA.
+Operational Performance
+As guided at the start of the fiscal, FY18 was a tough year. While we
+witnessed a decline in our financial performance for the year, the
+challenges also offer us an opportunity to improve our processes and
+hence emerge as a much stronger company. Our FY18 revenues de-
+grew by 14% to *261 Billion mainly due to decline in our US sales. We
+have recorded steady growth in all other markets except the US.
+Highlights of FY18
+Our specialty portfolio targets Dermatology, Ophthalmic, Oncology
+and CNS segments. We are developing our specialty products pipeline
+with a focus on improving patient outcomes either by addressing
+unmet medical needs or by enhancing patient convenience through
+differentiated dosage forms.
+The other key focus area for us will be cost control and product
+rationalisation, with these efforts spread across R&D projects,
+manufacturing footprint and other areas. These steps will ensure that
+we continue to earn reasonable returns on our investments.
+•
+We have recently initiated investments in the development of two
+new indications for llumya, viz., psoriatic arthritis and ankylosing
+spondylitis. Although the clinical trials for these new indications will
+require large front-ended investments, a successful outcome of the
+trials will significantly expand the addressable market for llumya
+globally.
+1,036
+Management Discussion
+and Analysis
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+5
+Sun Pharmaceutical Industries Ltd.
+Dilip Shanghvi
+Managing Director
+Warm regards,
+We are thankful for your support as a shareholder. You have
+continuously supported our endeavors over the past many years and we
+hope that you will continue to repose your confidence in us.
+Our talented team of employees will be the key driver of all the above
+initiatives. We are also grateful to our Board of Directors for their
+guidance and support.
+Given these factors, we expect a low double-digit topline growth in our
+consolidated revenues for FY19 over FY18. Our consolidated R&D
+investments for FY19 will be about 8-9% of revenues.
+We also received approval from the USFDA for a new label for
+OdomzoⓇ (sonidegib), an oral hedgehog inhibitor to treat patients
+with locally advanced basal cell carcinoma (laBCC) that has
+recurred following surgery or radiation therapy, or those who are
+not candidates for surgery or radiation therapy. The new label
+incorporates long-term data from the 30-month analysis of BOLT
+trial, in which OdomzoⓇ continued to show sustained durable
+tumour response of 26 months with no new safety concerns.
+The short-term outlook for the US generics market continues to be
+challenging given the pricing pressures. We expect normalisation of
+the India business in FY19 post the disruption in FY18 due to GST
+implementation. Favourable demographics will ensure reasonable
+volume growth in India. However, government-mandated price
+reductions/policy changes continue to be potential risks for this
+business. We are also expecting reasonable growth in our emerging
+markets business, however, as always, currency fluctuations continue to
+be a risk.
+We are gradually ramping up our global specialty business. We plan to
+increase its contribution to our consolidated revenues in the long term.
+This will entail significant front-ended investments, with commensurate
+revenue streams accruing only over a period of time.
+Overall outlook
+Our efforts in this direction will cover multiple operational aspects.
+The focus will be on optimising our manufacturing footprint as well as
+generics R&D investments, to ensure a reasonable return on investment
+as well as overall cost management.
+Given the tough pricing conditions in the US generics market, we
+continue to make efforts towards optimising our costs. It mandates an
+unwavering focus on cost control across the organisation. We are trying
+to achieve better results with lower resources as we try to make the
+organisation more efficient.
+Restructuring and rationalisation
+Our Halol facility, which was impacted by cGMP deviations in FY15,
+underwent a re-inspection by the USFDA in February 2018. On
+completion of the re-inspection, the USFDA issued three observations
+for the facility. Subsequently in June 2018, the USFDA issued the
+establishment inspection report (EIR) for the facility, thus clearing the
+facility. With this clearance, new approvals from this facility for the US
+market are likely to start coming through gradually.
+During the year, Sun Pharma made significant progress towards 24x7
+CGMP compliance. Many of our facilities underwent successful audits
+by multiple regulatory agencies, including the USFDA. At the same time,
+remediation work continued at some of the facilities, which had been
+impacted by cGMP deviations.
+Worldwide, pharmaceutical regulatory agencies are focusing on
+improving the quality of products approved by them. This has mandated
+adherence to very stringent cGMP standards by pharmaceutical
+manufacturers with a need to focus on 24x7 compliance status. Ability
+to successfully adhere to these cGMP standards has become a key
+determinant of future for the pharmaceutical industry.
+Global cGMP compliance
+FY18 was the most important year in terms of accrual of the synergy
+benefits from the Ranbaxy acquisition. The targeted synergy benefits
+for FY18 was US$ 300 Million and we are happy to have achieved
+this important milestone. As indicated before, we have utilised these
+synergy benefits to fund our evolving global specialty business.
+Ranbaxy synergies
+Some of our key specialty products are likely to be commercialised in
+the US in FY19 and hence we expect to incur significant pre-launch and
+branding costs along with increasing sales force costs.
+These changing dynamics are also likely to have an impact on
+competition since return ratios on investments in the US generics
+business are coming down and not every generics company will be able
+to remain economically viable at the current rate of price erosion. As a
+result, companies will have to optimise their future R&D investments.
+The US generics market has been an important driver of growth and
+profitability for Indian pharmaceutical companies between 2005-15.
+However, now with the changed dynamics, the importance of other
+markets has increased. It has also become imperative for companies to
+identify new engines of growth and invest more in innovation. It is in
+this context, that Sun Pharma has been investing in building its global
+specialty business since the last few years. Through this initiative we are
+trying to gradually move up in the pharmaceutical value chain.
+The clearance of the Halol facility by the USFDA paves the way for
+potential approvals for Elepsia XR (Levetiracetam Extended Release
+tablets) and Xelpros (Latanoprost BAK-free eye drops). These
+specialty products were in-licenced from Sun Pharma Advanced
+Research Company Ltd. (SPARC).
+Dear Shareholders,
+17.5
+65.2
+87.8
+Earnings per Share-Basic
+items) (In)*
+Share (post exceptional
+9.0
+29.0
+18.9
+18.9
+13.1
+25.7
+11.0
+5.6
+7.8
+Adjusted Earing per
+(Million)
+2,399
+2,399
+2,407
+2,071
+2,071
+The global pharmaceutical industry offers significant opportunities to
+service the healthcare needs of a growing and ageing global population.
+The industry has witnessed major investments in developing innovative
+medicines like monoclonal anti-bodies, immunotherapy drugs and gene
+therapies. Many of these medicines have seen significant success as they
+are serving the unmet medical needs of patients, resulting in improved
+medical outcomes and thus changing the lives of patients. However,
+pricing in key markets like the US has come under severe pressure in the
+last two years. The industry will have to adapt to this changed scenario,
+although it also offers significant learning opportunities.
+1,036
+7.5
+28.8
+12.4
+18.9
+Managing Director's Letter
+PHARMA
+15.2
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+3
+The Company has adopted Ind-AS accounting standards with effect from 01 April, 2015. Hence, FY16 onwards, the financials are reported as per Ind-AS and are
+not strictly comparable with previous years. For FY15, balance sheet items are as per Ind-AS.
+* During the FY16, the Company's equity shares have increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the Company,
+wherein 0.80 equity share of 1 each of the Company have been allotted to the shareholders of RLL for every 1 share of *5 each held by them.
+* During the FY14, the Company issued bonus shares in the ratio of one equity share of *1 for every share held.
+Diluted (In *)*
+9.0
+29.0
+18.9
+* During the FY11, each equity share of *5 was split into five equity shares of *1 each.
+87.8
+15.2
+28.8
+25.7
+17.5
+65.2
+29.0
+18.9
+Earning per Share-
+(In )*
+9.0
+18.9
+Disposals
+933.8
+108.1
+54.1
+(14.5)
+(350.1)
+7,388.6
+(488.4)
+562.4
+(84.9)
+135.2
+(15.3)
+As at March 31, 2017
+5,652.3
+(23.6)
+1,068.6
+11,071.7
+156.1
+Additions
+[Refer Note 56 (13)]
+40,231.7
+663.4
+465.0
+16.7
+430.0
+1.8
+805.3
+58.2
+408.2
+26,339.3
+16.9
+22.4
+Add Transfer on merger
+541.1
+Additions
+562.4
+370.3
+107.4
+impairment
+16.9
+4,039.3
+As at April 01, 2016
+0.5
+661.1
+6.9
+As at April 01, 2016
+depreciation and
+Accumulated
+56,883.9
+758.1
+481.1
+958.2
+38,905.9
+16.9
+562.4 14,160.1
+1,041.2
+As at March 31, 2018
+(1.7) (236.2)
+(1.2) (56.4)
+(176.9)
+Disposals
+158.2 9,324.8
+82.5
+65.4
+7,033.1
+601.6 47,795.3
+455.0
+894.0
+32,049.7
+12,281.9
+1,878.2
+At cost or deemed cost
+For cash-settled share-based payments, a liability is
+recognised for the goods or services acquired, measured
+initially at the fair value of the liability. At the end of
+each reporting period until the liability is settled, and at
+the date of settlement, the fair value of the liability is
+remeasured, with any changes in fair value recognised in
+profit or loss for the year.
+Office
+equipment
+income tax during the period for which the MAT credit
+can be carried forward for set-off against the normal tax
+liability. MAT credit recognised as an asset is reviewed at
+each Balance Sheet date and written down to the extent
+the aforesaid convincing evidence no longer exists.
+U.
+t.
+90
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+89
+Minimum Alternate Tax ('MAT') credit is recognised as
+deferred tax asset only when and to the extent there is
+convincing evidence that the Company will pay normal
+A deferred tax asset is recognised to the extent that it
+is probable that future taxable profits will be available
+against which the temporary difference can be utilised.
+Deferred tax assets are reviewed at each reporting
+date and are reduced to the extent that it is no longer
+probable that the related tax benefit will be realised.
+Withholding tax arising out of payment of dividends to
+shareholders under the Indian income tax regulations is
+not considered as tax expense for the Company and all
+such taxes are recognised in the statement of changes in
+equity as part of the associated dividend payment.
+Deferred tax is measured at the tax rates that are
+expected to be applied to the temporary differences
+when they reverse, based on the laws that have been
+enacted or substantively enacted by the end of the
+reporting period. Deferred tax assets and liabilities are
+offset if there is a legally enforceable right to set off
+corresponding current tax assets against current tax
+liabilities and the deferred tax assets and deferred tax
+liabilities relate to income taxes levied by the same tax
+authority on the Company.
+Deferred tax is recognised on temporary differences
+between the carrying amounts of assets and liabilities in
+the financial statements and the corresponding tax bases
+used in the computation of taxable profit.
+Income tax expense consists of current and deferred tax.
+Income tax expense is recognised in profit or loss except
+to the extent that it relates to items recognised in OCI or
+directly in equity, in which case it is recognised in OCI or
+directly in equity respectively. Current tax is the expected
+tax payable on the taxable profit for the year, using tax
+rates enacted or substantively enacted by the end of
+the reporting period, and any adjustment to tax payable
+in respect of previous years. Current tax assets and tax
+liabilities are offset where the Company has a legally
+enforceable right to offset and intends either to settle on
+a net basis, or to realise the asset and settle the liability
+simultaneously.
+Income tax
+funds. Borrowing costs also include exchange differences
+to the extent regarded as an adjustment to the borrowing
+costs. A qualifying asset is one that necessarily takes
+substantial period of time to get ready for its intended use.
+S.
+Borrowing costs that are directly attributable to the
+construction or production of a qualifying asset are
+capitalised as part of the cost of that asset. All other
+borrowing costs are expensed in the period in which they
+occur. Borrowing costs consist of interest and other costs
+that an entity incurs in connection with the borrowing of
+r. Borrowing costs
+Share-based payment arrangements
+The grant date fair value of options granted to
+employees is recognised as an employee expense, with
+a corresponding increase in equity, on a straight line
+basis, over the vesting period, based on the Company's
+estimate of equity instruments that will eventually
+vest. At the end of each reporting period, the Company
+revises its estimate of the number of equity instruments
+expected to vest. The impact of the revision of the
+original estimates, if any, is recognised in profit or loss
+such that the cumulative expense reflects the revised
+estimate, with a corresponding adjustment to the equity-
+settled employee benefits reserve.
+The Company's contributions to defined contribution
+plans are recognised as an expense as and when the
+services are received from the employees entitling them
+to the contributions. The Company does not have any
+obligation other than the contribution made.
+Defined contribution plans
+The Company's net obligation in respect of other long
+term employee benefits is the amount of future benefit
+that employees have earned in return for their service
+in the current and previous periods. That benefit is
+discounted to determine its present value.
+The Company treats accumulated leave expected to be
+carried forward beyond twelve months, as long-term
+employee benefit for measurement purposes. Such
+long-term compensated absences are provided for
+based on the actuarial valuation using the projected unit
+credit method at the year-end. Actuarial gains/losses are
+immediately taken to the statement of profit and loss and
+are not deferred.
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+144.2
+Earnings per share
+Total
+The Company presents basic and diluted earnings per
+share ("EPS") data for its equity shares. Basic EPS is
+calculated by dividing the profit or loss attributable to
+equity shareholders of the Company by the weighted
+average number of equity shares outstanding during
+the period. Diluted EPS is determined by adjusting the
+profit or loss attributable to equity shareholders and the
+weighted average number of equity shares outstanding
+for the effects of all dilutive potential ordinary shares,
+which includes all stock options granted to employees.
+Recent Accounting pronouncements
+and fixtures
+Vehicles
+Furniture
+Plant and
+equipment
+Buildings -
+leased
+Buildings
+Leasehold
+land
+Freehold
+land
+* in Million
+NOTE: 3 PROPERTY, PLANT AND EQUIPMENT
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+The amendments are effective April 1, 2018. The
+Company believes that the aforementioned amendments
+will not materially impact the financial position,
+performance or the cash flows of the Company.
+•Ind AS 112, Disclosure of Interests in Other Entities
+• Ind AS 28, Investments in Associates and Joint Ventures
+• Ind AS 12, Income Taxes
+• Ind AS 21, The Effects of Changes in Foreign
+Exchange Rates
+Ind AS 40, Investment Property
+On March 28, 2018, the MCA, issued certain
+amendments to Ind AS. The amendments relate to the
+following standards:
+Other Amendments:
+Amendments to Ind AS 7 Statement of Cash Flows:
+The amendments require entities to provide disclosure of
+changes in their liabilities arising from financing activities,
+including both changes arising from cash flows and non-
+cash changes (such as foreign exchange gains or losses).
+The Company has provided the information for the
+current period in Cash Flow Statement. Since amendment
+is effect from April 1, 2017, no comparative period
+information is required.
+The Company intends to adopt Ind AS 115 effective
+April 1, 2018, using the modified retrospective method.
+The Company is evaluating the requirements of the
+standard and its impact on its financials.
+Ind AS 115 is effective for annual reporting periods
+beginning on or after April 1, 2018.
+addressed comprehensively (for example, service revenue
+and contract modifications) and improve guidance for
+multiple-element arrangements.
+In March 2018, the Ministry of Corporate Affairs ("MCA")
+has notified Ind AS 115, Revenue from Contracts with
+Customers, which is effective for accounting periods
+beginning on or after April 1, 2018. This comprehensive
+new standard will supersede existing revenue recognition
+guidance, and requires an entity to recognise revenue
+to depict the transfer of promised goods or services to
+customers in an amount that reflects the consideration
+to which the entity expects to be entitled in exchange
+for those goods or services. The new standard also will
+result in enhanced disclosures about revenue, provide
+guidance for transactions that were not previously
+Ind AS 115, Revenue from Contracts with
+Customers
+Standards issued but not yet effective and not early
+adopted by the Company
+The number of equity shares and potentially dilutive
+equity shares are adjusted retrospectively for all periods
+presented for any share splits and bonus shares issues
+including for changes effected prior to the approval of
+the financial statements by the Board of Directors.
+89.8
+27.2
+48.6
+16,360,000
+Shares of 10 each fully paid
+Skisen Labs Private Limited
+0.1
+10,000
+0.1
+10,000
+0.1
+10,000
+Less: Impairment in value of investment
+0.1
+Shares of 10 each fully paid
+Realstone Multitrade Private Limited
+Neetnav Real Estate Private Limited
+Shares of 10 each fully paid
+0.1
+10,000
+0.1
+10,000
+Shares of 10 each fully paid
+Foundation for Disease Elimination and Control of India
+10,000
+0.1
+163.6
+(163.6)
+163.6
+39,877.3
+5,473,340
+39,877.3
+5,473,340
+Ordinary Shares of Euro 100 each fully paid
+Ranbaxy (Netherlands) B.V.]
+Sun Pharma (Netherlands) B.V. [formerly known as
+0.1
+54,031.5
+16,360,000
+855,199,716
+54,031.5
+855,199,716
+Shares of USD 1 each fully paid
+Sun Pharma Holdings
+0.1
+10,000
+Shares of 10 each fully paid
+Softdeal Trading Company Private Limited
+163.6
+10,000
+Ranbaxy Pharmacie Generiques SAS
+10,000
+10,000
+As at March 31, 2018
+Quantity
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+5,250,000 Rouble (March 31, 2017: 5,250,000 Rouble)
+8.8
+1
+8.8
+* in Million
+1
+OOO "Sun Pharmaceutical Industries" Limited
+0.2
+100
+0.2
+100
+Nominative and free Shares of 500 Mexican Pesos each fully paid
+SPIL DE Mexico S.A. DE CV
+[21,734 (March 31, 2017: ₹ 21,734)]
+0.0
+Par value rouble stock fully paid
+0.1
+As at March 31, 2017
+Quantity
+Green Eco Development Centre Limited
+Shares of 10 each fully paid
+Faststone Mercantile Company Private Limited
+1.5
+50,000
+1.5
+50,000
+Shares of 10 each fully paid
+Sun Pharma Laboratories Limited
+50 per share paid
+* in Million
+0.5
+0.5
+1,000
+Shares of Bolivars (Bs.F.) 100 each, Bolivars (Bs.F.)
+Sun Pharma De Venezuela, C.A.
+7.0
+700,000
+7.0
+700,000
+Shares of 10 each fully paid
+1,000
+Ordinary Shares of Euro 1 each fully paid
+24,117,250
+Less: Impairment in value of investment
+16,128,078
+Krebs Biochemicals and Industries Limited
+Quoted
+Investments in equity instruments
+Other investments
+Redeemable Preference Shares of 100 each
+fully paid
+10% Non-Convertible, Non-Cumulative
+Sun Pharma Laboratories Limited
+Preference shares - unquoted
+* in Million
+Investments in subsidiaries
+Market value of quoted investment
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+Zenotech Laboratories Limited [Refer Note 56(1)]
+Quoted
+Equity instruments - (At cost less impairment in value of
+investments, if any)
+As at March 31, 2017
+Quantity
+* in Million
+As at March 31, 2018
+Quantity
+NOTE : 7 INVESTMENTS (NON-CURRENT)
+NOTE: 6 INVESTMENTS IN THE NATURE OF EQUITY IN ASSOCIATES (NON-CURRENT)
+2,463.5
+(2,463.5)
+As at March 31, 2018
+Quantity
+100,000
+1.0
+100,000
+Shares of 10 each fully paid
+Enviro Infrastructure Co. Limited
+Unquoted
+105.1
+1,050,000
+172.3
+570.1
+1,050,000
+Add - Transfer on merger
+400.0
+400.0
+4,000,000
+400.0
+4,000,000
+* in Million
+As at March 31, 2017
+Quantity
+* in Million
+Shares of 10 each fully paid
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+3,318.5
+35,128,078
+Shares of 10 each fully paid
+Zenotech Laboratories Limited [Refer Note 56(1)]
+if any)
+8.6
+13,070,648
+8.6
+13,070,648
+Less: Impairment in value of investment
+Ordinary Shares of Naira 1 each fully paid
+Quoted (At cost less impairment in value of investments,
+37.0
+3,189,248
+37.0
+3,189,248
+Ordinary Shares of RM 1 each fully paid
+Ranbaxy Malaysia Sdn. Bhd.
+4,709.1
+(4,709.1)
+24,117,250
+4,709.1
+(4,709.1)
+Ranbaxy Nigeria Limited
+(1,737.8)
+1,580.7
+95,947.5
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+93
+1,429.7
+Aggregate amount of quoted investments at market value
+4,709.1
+6,610.5
+Aggregate amount of impairment in value of investments
+3,318.5
+Aggregate book value (carrying value) of quoted investments
+before impairment
+196,574.2
+185,517.7
+Aggregate amount of unquoted investments before
+impairment
+191,865.1
+182,225.7
+97,334.7
+1,540,593,148
+86,278.2
+5% Optionally Convertible Preference Shares USD 1,365,593,148
+1 each fully paid
+Sun Pharma Holdings
+Preference shares - unquoted (At cost)
+94,530.4
+149
+1.0
+0.0
+Ordinary Shares of Soles 10 each fully paid
+Buildings include 8,620 (As at March 31, 2017: 8,620) towards cost of shares in a co-operative housing society and also includes 1.1 Million (As at
+March 31, 2017: 1.1 Million) and 1,133.0 Million (As at March 31, 2017: 1,133.0 Million) towards cost of non-convertible preference shares of face
+value of 10/- each and compulsorily convertible debentures of face value of 10,000/- each in a Company respectively entitling the right of occupancy
+and use of premises and also includes 4.5 Million (March 31, 2017: 4.5 Million) towards cost of flats not registered in the name of the Company but is
+entitled to right of use and occupancy.
+(ii)
+(i)
+Footnotes
+43,756.5
+370.4
+261.9
+543.0
+344.3 38,693.5
+For details of assets pledged as security refer Note 51
+303.5
+24,740.8
+28,291.4
+15.9
+15.4
+548.6 11,212.7
+541.8 12,691.4
+933.8
+1,041.2
+As at March 31, 2018
+As at March 31, 2017
+Net book value
+13,127.4
+387.7
+593.9
+219.2
+(iii) The aggregate depreciation has been included under depreciation and amortisation expense in the statement of profit and loss.
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+73.4
+Additions
+805.3
+1,220.8
+1,208.0
+12.8
+Add - Transfer on merger [Refer Note 56 (13)]
+149.2
+656.1
+As at April 01, 2016
+91
+At cost or deemed cost
+Software
+in Million
+Total
+Goodwill
+Product
+Computer
+NOTE: 4 GOODWILL / OTHER INTANGIBLE ASSETS
+Other than internally generated
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+related intangibles
+8.6
+415.2
+1.5
+13.8
+As at March 31, 2017
+(284.0)
+(6.6)
+(35.2)
+(12.7)
+(215.8)
+(13.7)
+Disposals
+1,069.2
+4,043.4
+96.2
+136.3
+3,304.8
+0.5
+373.2
+6.9
+Depreciation expense
+[Refer Note 56 (13)]
+274.1
+125.5
+10,614.5
+1.0
+300.1
+1,468.7
+20.6
+As at March 31, 2018
+(109.9)
+(1.0)
+(0.7) (30.7)
+(77.5)
+Disposals
+4,135.5
+7,308.9
+131.4
+115.8
+3,383.1
+0.5
+399.5
+6.8
+Depreciation expense
+9,101.8
+257.3
+151.5
+98.4
+82.0
+Disposals
+(22.6)
+304.2
+8,387,666
+Common shares of no par value
+92
+Sun Pharmaceutical Industries, Inc.
+Unquoted (At cost less impairment in value of investments, if any)
+Equity instruments
+* in Million
+As at March 31, 2017
+Quantity
+8,387,666
+* in Million
+NOTE : 5 INVESTMENTS IN THE NATURE OF EQUITY IN SUBSIDIARIES (NON-CURRENT)
+1,692.8
+1,828.8
+1,208.0
+1,208.0
+85.8
+107.5
+535.0
+377.3
+579.4
+72.0
+As at March 31, 2018
+Quantity
+507.4
+304.2
+Quota of Capital Stock of Real 1 each fully paid
+Sun Pharmaceutical Peru S.A.C.
+31.6
+36.5
+3.3
+750
+31.6
+Share application money
+434,469
+36.5
+Sun Farmaceutica do Brasil Ltda
+434,469
+Sun Pharmaceutical (Bangladesh) Limited
+3.3
+750
+Common Shares of no Face Value
+Sun Pharma De Mexico, S.A. DE C.V.
+18.3
+4,019
+18.3
+4,019
+Ordinary Shares of 100 Takas each fully paid
+(0.1)
+(0.1)
+186.8
+28.9
+193.6
+As at April 01, 2016
+Accumulated amortisation and impairment
+2,408.2
+1,208.0
+157.8
+1,042.4
+As at March 31, 2018
+222.5
+(0.2)
+Disposals
+322.9
+Additions
+2,085.5
+1,208.0
+157.8
+719.7
+As at March 31, 2017
+(22.6)
+(0.2)
+Add - Transfer on merger [Refer Note 56 (13)]
+8.3
+8.3
+21.7
+165.1
+(i) The aggregate amortisation has been included under depreciation and amortisation expense in the statement of profit and loss.
+(ii) Refer Note 56 (2)
+Footnote
+As at March 31, 2018
+As at March 31, 2017
+Net book value
+As at March 31, 2018
+Disposals
+Amortisation expense
+392.7
+50.3
+342.4
+As at March 31, 2017
+(17.5)
+(17.5)
+Disposals
+179.4
+21.4
+158.0
+Amortisation expense
+149
+5,068.3
+Shimal Research Laboratories Limited
+9,340,000
+March 31, 2018
+* in Million
+As at
+March 31, 2017
+97,366.8
+743.5
+30,539.3
+78,498.1
+757.1
+24,900.1
+2,874.3
+2,874.3
+22,382.2
+25,892.5
+As at
+153,906.1
+The unused tax credits will expire from financial year 2022-23 to financial year 2027-28 and unused tax losses will expire from financial year
+2019-20 to financial year 2026-27.
+NOTE: 11 INCOME TAX ASSETS (NET) (NON-CURRENT)
+Advance Income Tax *
+Net of provisions 10,896.0 Million (March 31, 2017: 10,894.5 Million)
+* includes amount paid under protest
+NOTE: 12 OTHER ASSETS (NON-CURRENT)
+Capital advances
+Prepaid expenses
+Balances with government authorities *
+132,922.1
+Other assets
+Deductible temporary differences
+Unabsorbed depreciation
+Unabsorbed depreciation / carried forward losses
+2,497.3
+1,456.9
+3,954.2
+Other assets
+292.3
+(144.9)
+147.4
+(26.4)
+Unused tax credits (MAT credit entitlement)
+274.1
+MAT credit entitlement [Refer Note 56(4)]
+7,517.0
+7,490.6
+274.1
+(247.7)
+7,517.0
+7,517.0
+Deductible temporary differences, unused tax losses and unused tax credits for which no
+deferred tax assets have been recognised are attributable to the following:
+Tax losses
+Tax losses (Capital in nature)
+(247.7)
+393.4
+* includes amount paid under protest
+As at
+Lower of cost and net realisable value
+Raw materials and packing materials
+Goods in transit
+Work-in-progress
+Finished goods
+Stock-in-trade
+7,583.3
+128.9
+7,158.7
+298.0
+7,712.2
+March 31, 2017
+7,456.7
+8,442.8
+4,687.2
+6,082.2
+979.5
+462.1
+Stores and spares
+249.7
+639.0
+21,356.4
+7,727.8
+96
+March 31, 2018
+As at
+* in Million
+As at
+March 31, 2018
+20,742.4
+March 31, 2017
+17,848.7
+20,742.4
+17,848.7
+As at
+March 31, 2018
+2,870.5
+18.0
+1,057.3
+7.8
+3,953.6
+As at
+* in Million
+March 31, 2017
+2,924.0
+16.4
+1,155.6
+12.0
+4,108.0
+ANNUAL REPORT 2017-18
+STANDALONE FINANCIAL STATEMENTS
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2018
+NOTE: 13 INVENTORIES
+* in Million
+As at
+(229.9)
+(179.7)
+803.0
+879.3
+1,067.8
+Aggregate book value (carrying value) of quoted investments
+471.7
+665.2
+Aggregate amount of quoted investments at market value
+471.7
+665.2
+Aggregate amount of unquoted investments before
+impairment
+Investments (non-current)
+1,342.1
+934.5
+934.5
+Aggregate amount of impairment in value of investments
+NOTE : 8 LOANS (NON-CURRENT)
+Loans to employees / others
+Secured, considered good
+Unsecured, considered good
+NOTE : 9 OTHER FINANCIAL ASSETS (NON-CURRENT)
+Deposits - pledged with government authorities
+1,337.1
+Security deposits (unsecured, considered good)
+560.1
+[10,000 (March 31, 2017: 10,000)]
+27,400,000
+27.5
+100,000,000
+103.7
+200,000,000
+214.8
+150,000,000
+159.7
+100,000,000
+299.4
+96.5
+100,000,000
+97.6
+8.24% Bond of *1 each fully paid maturing March 22, 2028
+50,000,000
+51.0
+Unquoted
+National savings certificates
+0.0
+0.0
+7.98% Bond of *1 each fully paid maturing March 7, 2030
+Government of Tamil Nadu UDAY non -SLR bond
+Derivatives not designated as hedges
+As at
+* in Million
+As at
+April 01, 2017
+Recognised in
+profit or loss
+Recognised
+in other
+comprehensive
+* in Million
+Closing balance
+March 31, 2018
+income
+Deferred tax (liabilities) / assets in relation to:
+Difference between written down value of property, plant
+and equipment and capital work-in-progress as per books
+of accounts and income tax
+(4,353.0)
+(774.3)
+Opening balance
+(5,127.3)
+(9.2)
+(7.7)
+(17.8)
+(34.7)
+Allowance for doubtful debts and advances
+743.2
+(76.2)
+667.0
+Expenses claimed for tax purpose on payment basis
+Other liabilities
+NOTE : 10 DEFERRED TAX ASSETS (NET)
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+March 31, 2018
+March 31, 2017
+10.2
+16.2
+24.0
+32.5
+34.2
+48.7
+* in Million
+As at
+As at
+March 31, 2018
+1.0
+405.9
+82.8
+March 31, 2017
+1.6
+377.5
+611.5
+489.7
+990.6
+95
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+23,082.8
+Shares of 10 each fully paid
+(i) Inventory write downs are accounted, considering the nature of inventory, ageing, liquidation plan and net realisable value. Write downs of inventories
+amounted to * 8,767.9 Million (March 31, 2017: 7,876.9 Million). The changes in write downs are recognised as an expense in the statement of profit
+and loss.
+(iii) The cost of inventories recognised as an expense is disclosed in Notes 33, 34 and 37 and as purchases of stock-in-trade in the statement of profit and loss.
+(214.9)
+9.9
+0.8
+1.6
+14.7
+35.3
+184.3
+40.5
+674.0
+0.8
+214.9
+594.3
+672.5
+27,400,000
+27.3
+27,400,000
+27.1
+27,400,000
+27.1
+27,400,000
+* in Million
+882.9
+As at March 31, 2017
+Quantity
+9.9
+March 31, 2018
+98
+As at
+March 31, 2018
+* in Million
+As at
+March 31, 2017
+18.2
+448.9
+4.0
+134.5
+4.5
+4.5
+(4.5)
+March 31, 2017
+(4.5)
+138.5
+53.4
+512.0
+(512.0)
+53.4
+520.5
+138.5
+* in Million
+As at
+As at
+467.1
+Derivatives not designated as hedges
+in Million
+7.62% Bond of 1 each fully paid maturing March 7, 2026
+Government of Telangana UDAY non -SLR bond
+Shares of 10 each fully paid
+Nimbua Greenfield (Punjab) Limited
+0.5
+(0.5)
+(0.5)
+Less: Impairment in value of investment
+50,000
+0.5
+50,000
+Shares of 10 each fully paid
+140,625
+Biotech Consortium India Limited
+20,000
+0.2
+20,000
+Shares of 10 each fully paid
+Shivalik Solid Waste Management Limited
+934.0
+(934.0)
+9,340,000
+934.0
+(934.0)
+Less: Impairment in value of investment
+0.2
+As at March 31, 2018
+Quantity
+1.4
+1.4
+8.21% Bond of 1 each fully paid maturing June 23, 2026
+Government of Telangana UDAY non -SLR bond
+8.39% Bond of $1 each fully paid maturing June 23, 2026
+Government of Uttar Pradesh UDAY non -SLR bond
+8.21% Bond of 1 each fully paid maturing June 23, 2025
+Government of Rajasthan UDAY non -SLR bond
+8.01% Bond of 1 each fully paid maturing June 23, 2020
+Government of Rajasthan UDAY non -SLR bond
+7.86% Bond of * 1 each fully paid maturing June 23, 2019
+Government of Rajasthan UDAY non -SLR bond
+Government of Rajasthan UDAY non -SLR bond
+Government of Rajasthan UDAY non -SLR bond
+7.75% Bond of 1 each fully paid maturing June
+23, 2018
+Quoted
+Investments in government securities
+140,625
+for the year ended March 31, 2018
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+94
+107.7
+179.9
+5.0
+500,500
+Shares of 10 each fully paid
+Citron Ecopower Pvt. Ltd.
+Notes to the Standalone Financial Statements
+Other receivables
+Security deposits (unsecured, considered good)
+Insurance claim receivables
+400.1
+* in Million
+As at
+March 31, 2018
+As at
+March 31, 2017
+28,469.6
+27,147.0
+1,575.5
+1,209.7
+400.1
+30,045.1
+(1,575.5)
+(1,209.7)
+28,469.6
+27,147.0
+97
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2018
+28,356.7
+NOTE: 16 CASH AND CASH EQUIVALENTS
+1,662,199
+209,995
+NOTE: 14 INVESTMENTS (CURRENT)
+Investments in government securities
+Quoted
+As at March 31, 2018
+Quantity
+* in Million
+As at March 31, 2017
+Quantity
+in Million
+Government of Rajasthan UDAY non -SLR bond
+7.75% Bond of 1 each fully paid maturing June
+23, 2018
+27,400,000
+26.9
+420.7
+447.6
+Investments in mutual funds
+ICICI Prudential Mutual Fund-ICICI Prudential Liquid-
+Direct Plan Growth
+Units of 100 each fully paid
+BOI Axa Mutual Fund-BOI Axa Liquid Fund-Direct Plan-Growth
+Units of 100 each fully paid
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+NOTE: 15 TRADE RECEIVABLES
+Unsecured
+Considered good
+Considered doubtful
+Less: Allowance for doubtful debts (expected credit loss allowance)
+Unquoted *
+Balances with banks
+In current accounts
+In deposit accounts with original maturity less than 3 months
+324.8
+72.2
+458.4
+169.5
+* having original maturity of more than 12 months.
+NOTE: 18 LOANS (CURRENT)
+Loans to employees / others
+Secured, considered good
+Unsecured, considered good
+Balances held as margin money or security against guarantees and other commitments (*)
+Considered doubtful
+Loans to related parties (Refer Note 52 and 53)
+Unsecured, considered good
+Considered doubtful
+Less Allowance for doubtful loans
+NOTE: 19 OTHER FINANCIAL ASSETS (CURRENT)
+Interest accrued
+Considered good
+Considered doubtful
+Less Allowance for doubtful
+Less: Allowance for doubtful loans
+59.3
+73.0
+Unpaid dividend accounts
+Cheques on hand
+Cash on hand
+NOTE: 17 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 16 ABOVE
+Deposit accounts
+* in Million
+As at
+As at
+March 31, 2018
+March 31, 2017
+1,091.3
+0.6
+1,522.3
+4.5
+2.4
+1,094.3
+6.5
+1,533.3
+As at
+March 31, 2018
+* in Million
+As at
+March 31, 2017
+60.6
+38.0
+Earmarked balances with banks
+(ii) For details of inventories pledged as security refer Note 51.
+126.5
+11.9
+400.0
+322.9
+180.6
+32.3
+0.7
+21,734.2
+16,112.5
+24,254.9
+18,474.3
+Year ended
+76,963.3
+2,512.7
+79,476.0
+1,602.6
+* in Million
+Year ended
+March 31, 2017
+75,096.7
+2,835.3
+77,932.0
+* in Million
+March 31, 2018
+759.2
+2,125.9
+Year ended
+March 31, 2018
+394.8
+March 31, 2018
+As at
+As at
+* in Million
+NOTE: 32 OTHER INCOME
+Other operating revenues
+Sale of products [Refer Note 56 (11)]
+NOTE: 31 REVENUE FROM OPERATIONS
+Others (Refer Note 54)
+Provision in respect of losses of a subsidiary
+Employee benefits (Refer Note 48)
+March 31, 2017
+Year ended
+March 31, 2017
+Bank deposits at amortised cost
+NOTE: 30 PROVISIONS (CURRENT)
+Net gain arising on financial assets measured at fair value through profit or loss
+0.0
+2,040.7
+8,154.8
+0.0
+Others (March 31, 2018: 24,000; March 31, 2017: 20,000)
+2,040.7
+8,154.8
+Subsidiary
+Dividend income on investments
+232.1
+1,287.6
+22.0
+947.3
+Others (includes interest on income tax refund)
+107.7
+246.8
+Other financial assets carried at amortised cost
+6.6
+46.8
+Investments in debt instruments at fair value through other comprehensive income
+2.9
+Investments in debt instruments at amortised cost
+89.4
+3.5
+34.9
+11.8
+Loans at amortised cost
+Interest income on :
+for the year ended March 31, 2018
+STANDALONE FINANCIAL STATEMENTS
+0.7
+123.2
+105.5
+* in Million
+As at
+March 31, 2017
+March 31, 2018
+As at
+102
+Others
+Advance from customers
+Statutory remittances
+NOTE : 29 OTHER CURRENT LIABILITIES
+Derivatives designated as hedge
+Product settlement, claims, recall charges and trade commitments
+Derivatives not designated as hedge
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+Interest accrued
+Current maturities of long-term debt (Refer Note 51)
+NOTE : 28 OTHER FINANCIAL LIABILITIES (CURRENT)
+Dues to micro and small enterprises (Refer Note 46)
+Others
+NOTE : 27 TRADE PAYABLES
+40,540.4
+52,138.1
+15,320.8
+25,286.2
+Commercial paper (Unsecured)
+Other loans
+6,049.7
+24,793.9
+Notes to the Standalone Financial Statements
+20,602.8
+20,726.0
+ANNUAL REPORT 2017-18
+1,740.7
+348.8
+4.1
+1,387.8
+* in Million
+As at
+March 31, 2017
+March 31, 2018
+2,282.8
+288.3
+4.0
+2,575.1
+As at
+28,145.1
+18,567.4
+26.6
+72.6
+90.3
+14,298.5
+16,027.2
+1,152.9
+1,150.1
+135.4
+118.3
+76.7
+86.4
+63.1
+40.0
+12,319.3
+1,055.1
+* in Million
+As at
+March 31, 2017
+March 31, 2018
+As at
+24,899.4
+16.1
+95.8
+Loans repayable on demand (Unsecured)
+Consumption of materials, stores and spare parts
+NOTE: 37 OTHER EXPENSES
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+2,235.7
+437.8
+779.8
+660.6
+265.8
+3,883.1
+4.4
+1,013.7
+Year ended
+March 31, 2017
+* in Million
+2,956.7
+March 31, 2018
+Year ended
+104
+Exchange differences regarded as an adjustment to borrowing costs
+Unwinding of discounts on provisions
+Interest expense for financial liabilities carried at amortised cost
+Interest expense others
+16,176.9
+370.2
+NOTE: 36 FINANCE COSTS
+* includes gratuity expense of 331.8 Million (March 31, 2017: * 205.4 Million)
+Staff welfare expenses
+Share based payments to employees
+363.2
+14,998.8
+Year ended
+30.8
+March 31, 2018
+Year ended
+March 31, 2017
+4,576.2
+466.9
+2,214.1
+1,469.6
+513.2
+3,261.7
+232.6
+224.4
+3,492.3
+3,761.7
+2,317.9
+1,999.1
+4,293.3
+4,704.5
+Excise duty on sales
+Impairment in value of investment, net
+Professional, legal and consultancy
+Provision / write off / (reversal) for doubtful trade receivables / advances
+Communication
+Freight outward and handling charges
+Travelling and conveyance
+Printing and stationery
+Repairs and maintenance
+Commission on sales
+Selling and distribution
+Insurance
+Rates and taxes
+Rent
+Power and fuel
+Conversion and other manufacturing charges
+* in Million
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net gain/(loss) on sale of financial assets measured at fair value through other comprehensive
+income
+13,779.0
+825.8
+* in Million
+NOTE: 33 COST OF MATERIALS CONSUMED
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+103
+5,150.8
+11,280.4
+5.0
+7.5
+190.4
+183.0
+24.8
+96.1
+27.6
+142.0
+Miscellaneous income
+Lease rental and hire charges
+Insurance claims
+Sundry balances written back, net
+120.3
+Gain on sale of investment in associate
+2,307.8
+1,328.0
+Gain on sale of investment in subsidiary [Refer Note 56 (14)]
+(15.1)
+186.0
+Raw materials and packing materials
+Year ended
+March 31, 2017
+Inventories at the beginning of the year
+Inventories at the end of the year
+(1.0)
+1,042.0
+14,765.7
+Year ended
+March 31, 2018
+13,308.5
+(14,987.1)
+(1,678.6)
+March 31, 2017
+Year ended
+Year ended
+March 31, 2018
+14,987.1
+(13,394.5)
+1,592.6
+* in Million
+Contribution to provident and other funds *
+Salaries, wages and bonus
+NOTE: 35 EMPLOYEE BENEFITS EXPENSE
+Inventories at the end of the year
+Inventories at the beginning of the year
+NOTE: 34 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+22,284.5
+21,675.2
+(7,456.7)
+(7,712.2)
+22,021.0
+21,930.7
+7,720.2
+7,456.7
+Year ended
+March 31, 2017
+* in Million
+March 31, 2018
+Year ended
+Purchases during the year
+Loans from related party (Refer Note 52)
+20,802.2
+472.4
+2,120.8
+(0.1)
+(93,015)
+* (0.0)
+(30,366)
+Less: shares allotted by ESOP Trust on exercise of
+employee stock option (* : 30,366)
+Add: shares allotted to the ESOP Trust
+0.1
+123,381
+* 0.0
+30,366
+Opening balance (* : * 30,366)
+face value is as follows:
+The movement of equity shares issued to ESOP Trust at
+(7.5)
+2,399.3
+(7,500,000)
+2,399,260,815
+2,399.3
+2,399,323,180
+Closing balance
+Less: buy back of shares [Refer Note 56 (12)]
+2,406.6
+0.2
+2,406,605,118
+155,697
+2,399.3
+* 0.0
+62,365
+2,399,260,815
+in Million
+Number of shares
+* in Million
+Closing balance (* : * 30,366)
+Year ended March 31, 2017
+30,366
+99
+182,437,880
+Family Investment Pvt. Ltd.
+8.1
+194,820,971
+8.1
+194,820,971
+Tejaskiran Pharmachem Industries Pvt. Ltd.
+8.4
+200,846,362
+8.4
+200,846,362
+9.6
+230,285,690
+9.6
+230,285,690
+Viditi Investment Pvt. Ltd.
+Dilip Shantilal Shanghvi
+5 percent equity shares in the Company are as follows:
+Equity shares held by each shareholder holding more than
+% of holding
+As at March 31, 2017
+Number of shares
+% of holding
+As at March 31, 2018
+Number of shares
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+* 0.0
+7.6
+Year ended March 31, 2018
+Number of shares
+2,399,260,815
+2,159.1
+As at
+March 31, 2017
+* in Million
+2,701.0
+302.3
+March 31, 2018
+As at
+Add: shares allotted to employees on exercise of
+employee stock option (excluding shares held by ESOP
+trust) (*62,365)
+Opening balance
+Reconciliation of the number of equity shares and
+amount outstanding at the beginning and at the end of
+reporting period
+Equity Shares of 1 each
+Issued, subscribed and fully paid up
+Cumulative preference shares of * 100 each
+Equity shares of 1 each
+Authorised
+NOTE : 21 SHARE CAPITAL
+* includes balances of goods and service tax
+Balances with government authorities *
+Other assets
+Less: Allowance for doubtful
+Considered doubtful
+Considered good
+Advances for supply of goods and services
+Prepaid expenses
+Export incentives receivable
+NOTE : 20 OTHER ASSETS (CURRENT)
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+329.2
+2,399.3
+3,383.2
+328.8
+2,399.3
+2,399,323,180
+2,399.3
+2,399,260,815
+2,399.3
+2,399,323,180
+6,000.0
+10.0
+100,000
+5,990,100,000
+5,990.0
+5,990,000,000
+5,990.0
+10.0
+6,000.0
+5,990,000,000
+100,000
+5,990,100,000
+* in Million
+As at March 31, 2017
+Number of shares
+* in Million
+Number of shares
+As at March 31, 2018
+32.2
+10,738.2
+5.0
+15,845.5
+6,278.6
+9,454.0
+1,939.1
+3,383.2
+(206.3)
+(328.8)
+206.3
+1,939.1
+198.1
+25,021.5
+182,437,880
+Quality Investments Pvt. Ltd.
+15,646.9
+7,498.2
+15,538.7
+108.2
+108.2
+March 31, 2017
+March 31, 2018
+As at
+As at
+* in Million
+Others (Refer Note 54)
+Employee benefits (Refer Note 48)
+NOTE : 25 PROVISIONS (NON-CURRENT)
+Interest accrued
+NOTE : 24 OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+Unsecured
+Term loans from banks (Refer Note 51)
+Secured
+Term loan from department of biotechnology (Refer Note 51)
+NOTE : 23 BORROWINGS (NON-CURRENT)
+Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising
+on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising
+on the changes of the fair value of the designated portion of the hedging instruments that are recognised and accumulated under the cash
+flow hedge reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis
+adjustment to the non-financial hedged item.
+Debt instrument through OCI - This represents the cumulative gain and loss arising on fair valuation of debt instruments measured through
+other comprehensive income. This amount will be reclassified to profit or loss account on derecognition of debt instrument.
+Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investment in equity instrument
+in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of equity instrument.
+General reserve: The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of the Companies Act, 1956.
+Mandatory transfer to general reserve is not required under the Companies Act, 2013.
+Capital redemption reserve - The Company has recognised capital redemption reserve on buyback of equity shares from its retained earnings.
+The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.
+Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.
+for the year ended March 31, 2018
+7,606.4
+Notes to the Standalone Financial Statements
+As at
+* in Million
+As at
+March 31, 2017
+Unsecured
+Secured (Refer Note 51)
+From Banks
+Loans repayable on demand
+March 31, 2017
+March 31, 2018
+As at
+As at
+* in Million
+NOTE : 26 BORROWINGS (CURRENT)
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+101
+11,328.3
+3,451.8
+8,884.5
+1,808.5
+2,443.8
+1,643.3
+March 31, 2017
+As at
+As at
+March 31, 2018
+* in Million
+6.8
+6.8
+March 31, 2018
+9.1
+9.1
+7.6
+STANDALONE FINANCIAL STATEMENTS
+100
+Amalgamation reserve
+Share options outstanding account
+Securities premium reserve
+C)
+Capital reserve
+Reserve and surplus
+B)
+* in Million
+As at
+March 31, 2017
+0.0
+A) Share application money pending allotment (March 31, 2017: 7,177)
+March 31, 2018
+As at
+NOTE : 22 OTHER EQUITY
+(v) Refer Note 50 for number of employee stock options against which equity shares are to be issued by the Company / ESOP Trust upon vesting and exercise of
+those stock options.
+(iv) Rights, preference and restrictions attached to equity shares: The equity shares of the Company, having par value of 1 per share, rank pari passu in all
+respects including voting rights and entitlement to dividend.
+(iii) 7,500,000 (upto March 31, 2017: 7,500,000), equity shares of 1 each have been bought back during the period of five years immediately preceding the date
+at which the Balance Sheet is prepared. The shares bought back in the previous year were cancelled immediately. [Refer Note 56(12)]
+(ii) 334,956,764 (upto March 31, 2017: 334,956,764) equity shares of 1 each have been allotted, pursuant to scheme of amalgamation, without payment being
+received in cash during the period of five years immediately preceding the date at which the Balance Sheet is prepared.
+(i) 1,035,581,955 (upto March 31, 2017: 1,035,581,955) equity shares of 1 each have been allotted as fully paid up bonus shares during the period of five years
+immediately preceding the date at which the Balance Sheet is prepared.
+*Shareholding has been consolidated on the basis of PAN as per SEBI circular dated December 19, 2017.
+4.4
+106,329,652
+6.1
+145,302,877
+Life Insurance Corporation of India*
+7.6
+182,379,237
+7.6
+182,379,237
+Capital redemption reserve
+ANNUAL REPORT 2017-18
+General reserve
+Items of other comprehensive income (OCI)
+Share options outstanding account - The fair value of the equity settled share based payment transactions is recognised to share options
+outstanding account.
+Securities premium reserve - The amount received in excess of face value of the equity shares is recognised in securities premium reserve.
+In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is
+accounted as securities premium reserve. This reserve is utilised in accordance with the provisions of the Companies Act 2013.
+Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as
+capital reserve.
+Nature and purpose of each reserve
+207,725.4
+(10.6)
+49.9
+195,301.7
+(26.6)
+(10.1)
+16.0
+60.0
+207,736.0
+195,251.8
+124,860.0
+34,779.3
+34,779.3
+112,367.7
+7.5
+43.8
+43.8
+7.5
+26.4
+11,894.6
+36,124.4
+36,124.4
+11,929.1
+Refer statement of changes in equity for detailed movement in other equity balance
+Effective portion of cash flow hedges
+Debt instrument through OCI
+Equity instrument through OCI
+Retained earnings
+1,079.8
+225.4
+ANNUAL REPORT 2017-18
+Product settlement, claims, recall charges and trade commitments
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+420.3
+Interest accrued
+Borrowings
+Financial liabilities
+Derivatives not designated as hedges
+Mandatorily measured:
+Other receivables
+Interest accrued
+Bank balances other than cash and cash equivalents
+Cash and cash equivalents
+Trade receivables
+Security deposits
+Deposits - pledged with government authorities
+Loans to employees / others
+Loans to related parties
+Mandatorily measured:
+Government securities - unquoted (10,000)
+Derivatives not designated as hedges
+501.3
+111,170.6
+90.3
+90.3
+16,027.2
+1,150.1
+118.3
+86.4
+49.1
+24,899.4
+68,840.1
+31,192.8
+498.6
+756.8
+1,585.1
+184.3
+9.9
+458.4
+1,094.3
+28,469.6
+420.6
+1.0
+0.0
+53.4
+107
+828.3
+498.6
+As at
+March 31, 2017
+March 31, 2018
+As at
+* in Million
+Equity instruments / bonds - quoted
+Investments
+Financial assets
+NOTE: 42 CATEGORIES OF FINANCIAL INSTRUMENTS
+Total
+Capital
+Revenue, net (excluding depreciation) (Refer Note 38)
+NOTE: 41 RESEARCH AND DEVELOPMENT EXPENDITURE
+Guarantees given by the bankers on behalf of the Company
+iii
+For non-cancellable lease related commitments refer Note 49
+Letters of credit for imports
+e
+d
+For derivatives related commitments refer Note 45
+C
+3,062.4
+Equity instruments / preference shares / mutual fund - unquoted
+4,235.4
+0.5
+Amortised cost
+income
+Fair value
+through other
+comprehensive
+Fair value through
+profit or loss
+As at March 31, 2018
+* in Million
+9,674.0
+9,331.7
+1,392.3
+1,591.0
+8,281.7
+7,740.7
+March 31, 2018
+March 31, 2017
+Year ended
+* in Million
+Year ended
+2,312.0
+1,962.7
+1,060.5
+2,434.4
+0.5
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Standalone Financial Statements
+As at March 31, 2018
+Level 2
+Level 1
+* in Million
+96,925.5
+26.6
+72.6
+72.6
+26.6
+14,298.5
+1,152.9
+135.4
+76.7
+69.9
+20,726.0
+60,466.1
+29,494.3
+665.2
+2,008.5
+1,205.8
+40.5
+1.6
+Level 3
+0.8
+Financial assets and liabilities measured at fair value on a recurring basis at the
+end of each reporting period
+Investments in equity - quoted #
+108
+90.3
+90.3
+Derivatives not designated as hedges
+Financial liabilities
+407.6
+756.8
+919.3
+756.8
+Derivatives not designated as hedges
+420.7
+Mutual funds
+Investments in preference shares
+400.0
+326.3
+Investments in government securities
+Investments in equity - unquoted
+7.6
+172.3
+Financial assets
+169.5
+1,533.3
+27,147.0
+Derivatives not designated as hedges
+Mandatorily measured :
+Other receivables
+Insurance claim receivables
+Interest accrued
+Bank balances other than cash and cash equivalents
+Cash and cash equivalents
+Trade receivables
+Security deposits
+-
+Deposits pledged with government authorities
+Loans to employees / others
+Loans to related parties
+Government securities - unquoted (* 10,000)
+Equity instruments / preference shares / mutual fund - unquoted
+Equity instruments / bonds - quoted
+Investments
+Financial assets
+for the year ended March 31, 2018
+Financial liabilities
+Borrowings
+Interest accrued
+Trade payables
+412.8
+1.6
+187.2
+0.0
+802.7
+665.2
+Amortised cost
+income
+Fair value
+through other
+comprehensive
+Uncalled liability on partly paid investments
+Fair value through
+profit or loss
+* in Million
+NOTE : 43 FAIR VALUE HIERARCHY
+Derivatives not designated as hedges
+Mandatorily measured:
+Derivatives designated as hedges
+Product settlement, claims, recall charges and trade commitments
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+As at March 31, 2017
+b
+Trade payables
+a
+155.7
+54.9
+62.2
+342.8
+288.4
+2,815.9
+3,000.4
+46.7
+135.1
+2,848.1
+Year ended
+March 31, 2017
+* in Million
+Year ended
+March 31, 2018
+3,167.3
+32.8
+28.8
+Consumption of materials, stores and spare parts
+Contribution to provident and other funds
+Salaries, wages and bonus
+Repairs and maintenance
+Insurance
+Rates and taxes
+241.7
+Power and fuel
+11.5
+37.3
+468.0
+Receipts from research activities
+Less:
+647.3
+9,038.0
+8,261.0
+280.5
+(0.4)
+4.8
+Loss on sale/write off of property, plant and equipment and intangible assets, net
+Miscellaneous expenses
+1,196.1
+757.7
+Professional, legal and consultancy
+40.6
+26.8
+Communication
+31.1
+132.8
+106.4
+Travelling and conveyance
+26.0
+Printing and stationery
+311.7
+Staff welfare expenses
+Rent
+NOTE: 38 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE STATEMENT OF PROFIT
+AND LOSS
+63.7
+Loss on sale/write off of property, plant and equipment and intangible assets, net
+15.8
+30.8
+Donations
+1,092.4
+237.6
+(562.2)
+3,813.1
+3,983.0
+38.5
+(135.7)
+263.9
+278.2
+1,602.2
+1,781.0
+1,759.9
+1,678.5
+327.3
+112.2
+(Decrease) increase of excise duty on inventories
+(235.9)
+(49.4)
+28,822.6
+27,141.2
+2,385.7
+1,416.5
+Miscellaneous expenses
+165.4
+254.3
+Provision in respect of losses of a subsidiary
+0.4
+Miscellaneous income
+1.6
+10.2
+Reimbursement of expenses
+For other services
+24.8
+Estimated amount of contracts remaining to be executed on capital account [net of
+advances]
+For audit
+(1,746.2)
+(518.1)
+Net (gain) / loss on foreign currency transactions [includes exchange loss of ₹269.0 Million
+(Previous year exchange gain of 132.6 Million) in respect of provision for losses of a subsidiary]
+Payments to auditors (net of input credit, wherever applicable)
+11.0
+517.5
+2.8
+7,740.7
+17.1
+105
+3,488.2
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit,
+enjoyed by the Company
+130.5
+ESIC contribution on account of applicability
+1,102.2
+45.7
+122.5
+1,055.0
+Excise duty on account of valuation / cenvat credit
+Sales tax on account of rebate / classification
+45,998.3
+47,107.7
+Income tax on account of disallowances / additions
+355.0
+592.7
+Claims against the Company not acknowledged as debts
+Liabilities disputed - appeals filed with respect to :
+b
+a
+Contingent liabilities
+i
+132.8
+3,488.2
+March 31, 2017
+Demand by JDGFT for import duty with respect to import alleged to be in excess of
+entitlement as per the advanced license scheme
+16.7
+747.0
+9.3
+8,281.7
+Commitments
+ii
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+Future cash outflows in respect of the above matters are determinable only on receipt of
+judgements/decisions pending at various forums / authorities.
+Footnote:
+The Company and/or its subsidiaries are involved in various legal proceedings including
+product liability, contracts, employment claims, anti-trust and other regulatory matters relating
+to conduct of its business. Most of these legal proceedings involve various complex issues
+on account of which, making a reliable estimate of the expected financial effect is not always
+attainable and involves significant uncertainties. To the extent that the Company concludes
+that a liability is probable and estimable based on the status of these cases, advice of the
+counsel, management assessment of the likely damages etc. the Company records a provision
+in the financial statements. The Company carries product liability insurance / is contractually
+indemnified by the manufacturer, for an amount it believes is sufficient for its needs. In respect
+of other claims, the Company believes, these claims do not constitute material litigation
+matters and with its meritorious defences the ultimate disposition of these matters are not
+expected to have material adverse effect on its Financial Statements.
+Legal proceedings:
+106
+67.5
+77.4
+171.0
+171.0
+715.4
+830.7
+Fine imposed for anti-competitive settlement agreement by European Commission
+Octroi demand on account of rate difference
+17.4
+March 31, 2018
+Other matters - state electricity board, Punjab Land Preservation Act related matters etc.
+Note: includes, interest till the date of demand, wherever applicable
+As at
+Effect of current/deferred tax relating to merged entities
+Withholding tax in respect of income earned outside India
+Investment allowance u/s 32AC of Income Tax Act, 1961
+(1,576.6)
+Effect of incremental deduction on account of research and development and other allowances
+Effect of expenses that are not deductible
+Effect of income that is exempt from tax
+Income tax credit calculated at income tax rate
+Income tax rate (%) applicable to the Company #
+Loss before tax
+Reconciliation of current tax expense
+* in Million
+Year ended
+March 31, 2018
+NOTE: 39 TAX RECONCILIATION
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+* in Million
+As at
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+Income tax expense recognised in statement of profit and loss
+Year ended
+March 31, 2017
+(168.0)
+NOTE: 40 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
+# The tax rate used for reconciliation above is the corporate tax rate of 34.608% (March 31, 2017: 34.608%) at which the Company is liable to pay tax on taxable
+income under the Indian Tax Law.
+(5,199.8)
+60.4
+(253.9)
+4,680.4
+32.6
+(26.4)
+25.1
+20.2
+6,307.5
+(2,959.5)
+80.3
+102.7
+34.608%
+34.608%
+(1,505.8)
+(3,281.8)
+(58.1)
+(234.5)
+(1,799.5)
+87.4
+401.2
+100.3
+292.4
+115.2
+253.8
+305.2
+115.3
+461.2
+132.3
+282.0
+100.4
+87.4
+Central government securities
+(Unfunded)
+Pension Fund
+Gratuity
+(Funded)
+* in Million
+As at March 31, 2017
+Surplus fund lying uninvested
+Insurer managed funds (Funded with LIC, break-up not
+available)
+Bonds and securities of public sector / financial
+institutions
+The major categories of plan assets are as under
+Thereafter
+31-Mar-23
+31-Mar-22
+295.8
+31-Mar-21
+Gratuity
+(Funded)
+132.5
+Later than one year and not later than five years
+151.9
+As at March 31, 2018
+Pension Fund
+(Unfunded)
+118
+Erstwhile Ranbaxy Laboratories Limited (RLL) had Employee Stock Option Schemes ("ESOS's") namely, Employees Stock Option Scheme -II
+(ESOS-II), Employees Stock Option Scheme 2005 (ESOS 2005) and Employees Stock Option Plan 2011 (ESOP 2011) for the grant of stock
+options to the eligible employees and Directors of the Erstwhile RLL and its subsidiaries. ESOS-II had been discontinued from 17th January,
+2015. The ESOS's are administered by the Compensation Committee ("Committee”). Options are granted at the discretion of the Committee
+to selected employees depending upon certain criterion. Each option comprises one underlying equity share.
+17.1
+March 31, 2017
+17.1
+March 31, 2018
+As at
+* in Million
+As at
+NOTE: 50 EMPLOYEE SHARE-BASED PAYMENT PLANS
+Later than five years
+Not later than one year
+(a) The Company has given certain premises and plant and equipment under operating lease or leave and license agreements. These are
+generally not non-cancellable and periods range between 11 months to 10 years under leave and licence / lease and are renewable by mutual
+consent on mutually agreeable terms. The Company has received refundable interest free security deposits where applicable in accordance
+with the agreed terms. (b) The Company has obtained certain premises for its business operations (including furniture and fittings, therein as
+applicable) under operating lease or leave and license agreements. These are generally not non-cancellable and periods range between 11
+months to 10 years under leave and licence, or longer for other lease and are renewable by mutual consent on mutually agreeable terms. The
+Company has given refundable interest free security deposits in accordance with the agreed terms. These refundable security deposits have
+been valued at amortised cost under relevant Ind AS (c) Lease receipts / payments are recognised in the statement of profit or loss under
+"Lease rental and hire charges" & "Rent" in Note 32 and 37 respectively. (d) The future minimum lease payments in respect of assets taken on
+non cancellable operating leases are as under -
+NOTE: 49 LEASES
+283.2
+The contribution expected to be made by the Company for gratuity, during financial year ending March 31, 2019 is 241.1 Million (March 31, 2018 : * 372.9
+Million)
+1,818.3
+14.0
+2,459.2
+69.3
+20.9
+9.9
+67.3
+1,276.5
+174.8
+1,138.5
+174.4
+281.0
+152.1
+273.8
+22.2
+31-Mar-20
+N.A.
+Maturity analysis of projected benefit obligation
+Indian Assured
+Lives Mortality
+N.A.
+Indian Assured
+Lives Mortality
+(2006-08)
+15.00%
+60
+Lives Mortality
+(2006-08)
+N.A.
+N.A.
+Indian Assured
+N.A.
+14.50%
+N.A.
+11.65%
+N.A.
+6.81%
+7.50%
+N.A.
+6.81%
+N.A.
+6.81%
+7.50%
+Gratuity
+(Funded)
+(Unfunded)
+Pension Fund
+Gratuity
+(Funded)
+(Unfunded)
+Pension Fund
+As at March 31, 2017
+As at March 31, 2018
+* in Million
+1,930.7
+2,550.4
+(197.0)
+7.50%
+N.A.
+Indian Assured
+Lives Mortality
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+117
+80.3
+(71.6)
+(158.4)
+31.7
+(110.5)
+(28.9)
+174.6
+119.8
+189.7
+86.0
+125.8
+(167.7)
+(73.2)
+(113.6)
+(68.2)
+80.2
+Gratuity
+(Funded)
+As at March 31, 2017
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+As at March 31, 2018
+Pension Fund
+(Unfunded)
+* in Million
+13.50%
+60
+(2006-08)
+N.A.
+N.A.
+(2006-08)
+31-Mar-19
+a)
+Defined benefit plan
+* in Million
+As at
+* in Million
+March 31, 2018
+68,840.1
+Debt (includes non-current, current borrowings and current maturities of long-term debt)
+Less: cash and cash equivalents, term deposits and current investments
+Net debt
+As at
+Debt equity ratio
+(i)
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+109
+The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents, term deposits and current
+investments as presented on the face of the financial statements. The Company's objective for capital management is to maintain an
+optimum overall financial structure.
+402.6
+407.6
+402.6
+As at
+March 31, 2017
+60,466.1
+1,602.5
+1,971.4
+7,977.4
+Year ended
+March 31, 2017
+* in Million
+Year ended
+March 31, 2018
+Dividends not recognised at the end of the reporting period
+Dividend distribution tax on above
+Final dividend for the year ended March 31, 2017 of 3.5 (year ended March 31, 2016: 1.0) per
+fully paid share
+402.6
+5.0
+Dividend on equity shares
+34.0%
+197,701.0
+(ii) Dividend on equity shares paid during the year
+Net debt to total equity ratio
+Total equity, including reserves
+58,494.7
+67,237.6
+210,124.7
+27.8%
+2,406.8
+Year ended
+March 31, 2017
+* in Million
+1,065.3
+1,205.8
+400.1
+400.0
+2.6
+Level 3
+* in Million
+560.1
+105.1
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Financial liabilities
+Derivatives not designated as hedges
+Mutual funds
+Investments in government securities
+Investments in preference shares
+1,205.8
+402.6
+72.6
+26.6
+-to provide an adequate return to shareholders through optimisation of debts and equity balance.
+- to ensure the Company's ability to continue as a going concern; and
+The Company's capital management objectives are:
+NOTE: 44 CAPITAL MANAGEMENT
+Balance at the end of the year
+Disposal settlements
+Issues
+Year ended
+March 31, 2018
+Purchases
+Unlisted shares valued at fair value
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates their fair value.
+Reconciliation of Level 3 fair value measurements
+There were no transfers between Level 1 and 2 in the periods.
+# These investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose. Upon the application of Ind
+AS 109, the Company has chosen to designate these investments in equity instruments as at fair value through other comprehensive income as the management
+believes that this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting changes in fair value immediately in
+profit or loss.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted
+investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents estimate of fair value within
+that range.
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly.
+Level 3 inputs are unobservable inputs for the asset or liability.
+99.2
+Balance at the beginning of the year
+3.4
+74.7
+The Board of Directors at it's meeting held on May 25, 2018 have recommended payment of final
+dividend of 2 per share of face value of 1 each for the year ended March 31, 2018. The same
+amounts to 4,798.7 Million.
+Borrowings
+March 31, 2018
+More than 3 years
+1-3 years
+Less than 1 year
+Year ended
+Non derivative
+The Company has unutilised working capital lines from banks of 41,769.0 Million as on March 31, 2018, 32,128.0 Million as on March 31, 2017.
+The table below provides details regarding the contractual maturities of significant financial liabilities :
+Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its
+liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and
+stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.
+Liquidity risk
+Other than trade receivables, the Company has no significant class of financial assets that is past due but not impaired. The Company has
+recognised an allowance of 4.5 Million (March 31, 2017: 731.4 Million) against a past due loan including interest.
+1,575.5
+Balance at the end of the year
+1,209.7
+(167.4)
+Trade payables
+53,923.8
+12,985.5
+2,672.9
+90.3
+90.3
+90.3
+Forward exchange contracts
+Derivative
+111,912.7
+2,672.9
+1,304.5
+72.6
+12,994.6
+17,431.1
+9.1
+17,422.0
+Other financial liabilities
+24,899.4
+24,899.4
+69,582.2
+96,245.2
+Year ended
+March 31, 2017
+(270.7)
+1,209.7
+636.5
+Total
+Financial assets for which loss allowances is measured using the expected credit loss
+Trade receivables
+The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision
+matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical
+data of credit losses from various customers.
+Trade receivables
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+less than 180 days
+ANNUAL REPORT 2017-18
+The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good
+credit rating. The Company does not expect any significant losses from non-performance by these counter-parties, and does not have any
+significant concentration of exposures to specific industry sectors or specific country risks.
+Investments
+Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
+obligations, and arises principally from the Company's receivables from customers, loans and investments. Credit risk is managed through
+credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Company grants
+credit terms in the normal course of business.
+Credit risk
+The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company's risk
+management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set
+appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and
+processes are reviewed regularly to reflect changes in market conditions and the Company's activities.
+NOTE: 45 FINANCIAL RISK MANAGEMENT
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general
+meeting and hence not recognised as liability.
+110
+Investments in equity - quoted #
+Investments in equity - unquoted
+180 - 365 days
+Movement in the expected credit loss allowance on trade receivables
+Year ended
+March 31, 2018
+* in Million
+28,356.7
+30,045.1
+3,858.6
+2,351.1
+3,556.8
+beyond 365 days
+5,347.6
+22,346.4
+* in Million
+As at
+March 31, 2017
+March 31, 2018
+As at
+Recoveries
+Addition
+Balance at the beginning of the year
+20,941.3
+Financial assets
+Financial assets and liabilities measured at fair value on a recurring basis at the
+end of each reporting period
+As at March 31, 2017
+Level 2
+- due to change in demographic assumptions
+- due to change in financial assumptions
+- due to experience
+Obligation as at the year end
+(50.0)
+5.6
+903.7
+(114.2)
+(406.5)
+54.5
+61.7
+398.0
+(61.1)
+2,625.8
+1.7
+101.0
+969.5
+2,885.3
+116
+ANNUAL REPORT 2017-18
+Actuarial (gains)/losses on obligations
+(197.0)
+163.5
+592.6
+1.8
+(507.6)
+(4,685.4)
+4,598.6
+2,169.0
+Impact of merger
+8.2
+Current service cost
+Interest cost
+66.0
+STANDALONE FINANCIAL STATEMENTS
+266.8
+196.5
+70.2
+Obligations transferred
+Benefits paid
+(87.4)
+(141.0)
+(87.6)
+Obligation transferred to regional provident fund,
+net of accumulated unrecognised gains
+180.9
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2018
+Reconciliation of liability/(asset) recognised in the Balance sheet
+Present value of commitments (as per Actuarial Valuation)
+Fair value of plan assets
+As at
+As at
+As at
+March 31, 2018
+March 31, 2017
+March 31, 2017
+Gratuity
+* in Million
+(Funded)
+Gratuity
+(Funded)
+2,625.8
+(2,550.4)
+75.4
+2,885.3
+(1,930.7)
+954.6
+Provident Fund
+(Funded)
+930.7
+Delta effect of -1% change in rate of employee turnover
+Delta effect of +1% change in discount rate
+Delta effect of -1% change in discount rate
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee
+Excess of planned assets over commitments not recognised
+Net liability recognised in the financial statement
+Reconciliation of plan assets
+Plan assets as at the beginning of the year
+Impact of merger
+Expected return
+Plan assets transferred
+Actuarial gain
+turnover
+Employer's Contribution during the year
+Benefits paid
+Discount rate
+Expected return on plan assets
+Expected rate of salary increase
+Interest rate guarantee
+Mortality
+Withdrawal
+Retirement Age (years)
+Sensitivity analysis:
+Impact on defined benefit obligation
+Funds transferred to regional provident fund
+Plan assets as at the year end
+90.3
+2,885.3
+Obligation as at the beginning of the year
+for the year ended March 31, 2018
+iii)
+iv)
+Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
+plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the
+plan's liability.
+Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As
+such, an increase in the salary of the plan participants will increase the plan's liability.
+Other long term benefit plan
+Actuarial Valuation for Compensated absences is done as at the year end and the provision is made as per Company rules with corresponding
+(gain) charge to the statement of profit and loss amounting to (78.7) Million (March 31, 2017: 331.3 Million) and it covers all regular
+employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as at the year end using
+the 'Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating to defined benefit obligation are recognised
+in other comprehensive income whereas gains and losses in respect of other long term employee benefit plans are recognised in profit or loss.
+Expense recognised in the statement of profit and loss
+(Refer Note 35)
+Current service cost
+in Million
+Year ended March 31, 2018
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+115
+Level 1
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+b)
+Risks
+Pension Fund
+(Unfunded)
+Gratuity
+Pension fund
+The Company has an obligation towards pension, a defined benefit retirement plan, with respect to certain employees, who had already
+retired before March 01, 2013, will continue to receive the pension as per the pension plan.
+These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
+i)
+ii)
+Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to
+the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create
+a plan deficit. However, the risk is partially mitigated by investment in LIC managed fund.
+Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase
+in the return on the plan's debt investments.
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund Scheme. It is governed
+by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or
+termination of the employment on completion of five years or death while in employment. The level of benefit provided depends on the
+member's length of service and salary at the time of retirement/termination age. Provision for Gratuity is based on actuarial valuation
+done by an independent actuary as at the year end. Each year, the Company reviews the level of funding in gratuity fund. The Company
+decides its contribution based on the results of its annual review. The Company aims to keep annual contributions relatively stable at a
+level such that the fund assets meets the requirements of gratuity payments in short to medium term.
+Year ended March 31, 2017
+Provident Fund
+(Funded)
+Gratuity
+(Funded)
+Remeasurement of defined benefit obligation recognised
+in other comprehensive income
+Actuarial loss / (gain) on defined benefit obligation
+Actuarial gain on plan assets
+(44.4)
+(581.8)
+56.2
+(38.1)
+205.4
+Expense/(income) charged to other comprehensive
+(619.9)
+56.2
+560.7
+(16.1)
+544.6
+income
+Reconciliation of defined-benefit obligations
+(44.4)
+969.5
+70.2
+66.0
+Interest cost
+Expected return on plan assets
+266.8
+180.9
+66.0
+196.5
+(131.5)
+70.2
+331.8
+592.6
+(598.5)
+(147.2)
+Recognition of unrecognised liabilities of earlier
+years
+Excess of planned assets over commitments not
+5.9
+recognised in financial statements
+Expense charged to the statement of profit and loss
+171.7
+111
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+$22.5
+Forward contracts
+AUD
+Sell
+USD
+$8.2
+$ 1.3
+Forward contracts
+RUB
+Sell
+USD
+$5.0
+$ 12.0
+Forward contracts
+GBP
+Sell
+USD
+USD
+Currency cum interest rate swaps
+$3.6
+USD
+Sell
+CAD
+$ 18.2
+Forward contracts
+USD
+Sell
+ZAR
+Forward contracts
+$ 0.0
+$2.8
+$21.0
+Buy
+INR
+USD
+130.4
+1.8
+38.1
+591.1
+16.1
+236.4
+(141.0)
+(507.6)
+(4,725.5)
+Gratuity
+Hedges of highly probable forecasted transactions
+The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable forecasted
+transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recorded as in
+other comprehensive income, and re-classified in the income statement as revenue in the period corresponding to the occurrence of
+the forecasted transactions. The ineffective portion of such cash flow hedges is immediately recorded in the statement of profit
+and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a gain of * 26.6 Million for
+the year ended March 31, 2018 and loss of ₹ 26.6 Million for the year ended March 31, 2017 in other comprehensive income. The
+Company also recorded hedges as a component of revenue, loss of Nil for the year ended March 31, 2018 and 521.5 Million for the
+year ended March 31, 2017 on occurrence of forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and liabilities in foreign
+currencies, and for which no hedge accounting is applied, are recognised in the statement of profit and loss. The changes in fair value
+of the forward contracts and option contracts, as well as the foreign exchange gains and losses relating to the monetary items, are
+recognised in the statement of profit and loss.
+113
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2018
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts -
+Forward contracts
+Derivatives not designated as hedges
+$ 22.0
+USD
+Sell
+ZAR
+Buy
+Forward contracts
+Amount in Million
+As at
+March 31, 2017
+March 31, 2018
+As at
+Cross
+Currency
+Buy/Sell
+Currency
+Derivatives designated as hedges
+598.5
+INR
+Currency options
+Loss for the year (in million)- used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic earnings per share (A)
+Add: Dilution effect of employee stock options (B)
+Weighted average number of shares used in computing diluted earnings per share (A+B)
+Nominal value per share (in )
+Basic earnings per share (in )
+Year ended
+March 31, 2018
+(4,945.9)
+2,399,296,653
+65,420
+Year ended
+March 31, 2017
+(228.4)
+2,403,319,673
+2,399,362,073
+203,455
+2,403,523,128
+1
+(2.1)
+1
+(0.1)
+(2.1)
+(0.1)
+Diluted earnings per share (in )
+Since the Company has loss for the year and in the previous year, the impact of employee stock option is anti dilutive. Therefore the basic
+and diluted earnings per share are the same.
+NOTE : 48 EMPLOYEE BENEFIT PLANS
+0.1
+0.4
+27.0
+36.9
+74.9
+72.7
+NOTE: 47 EARNINGS PER SHARE
+* in Million
+Year ended
+March 31, 2017
+511.7
+Year ended
+March 31, 2018
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+Contribution to Superannuation Fund
+Contribution to Provident Fund and Family Pension Fund
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC) and other Funds
+which covers all regular employees. While both the employees and the Company make predetermined contributions to the Provident Fund
+and ESIC, contribution to the Family Pension Fund and other Statutory Funds are made only by the Company. The contributions are normally
+based on a certain percentage of the employee's salary. Amount recognised as expense in respect of these defined contribution plans,
+aggregate to 676.3 Million (March 31, 2017: 613.7 Million).
+Defined contribution plan
+566.3
+$ 50.0
+for the year ended March 31, 2018
+STANDALONE FINANCIAL STATEMENTS
+USD
+Buy
+INR
+$ 100.0
+$ 50.0
+$ 100.0
+Interest rate swaps
+USD
+Buy
+INR
+$ 150.0
+$ 150.0
+Interest rate risk
+The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in interest rates. The Company's
+Treasury Department monitors the interest rate movement and manages the interest rate risk by evaluating interest rate swaps etc. based on
+the market / risk perception.
+For the years ended March 31, 2018 and March 31, 2017, every 50 basis point decrease in the floating interest rate component applicable
+to its loans and borrowings would decrease the Company's loss by approximately 122.2 Million and 160.5 Million respectively. A 50 basis
+point increase in floating interest rate would have led to an equal but opposite effect.
+Commodity rate risk
+Exposure to market risk with respect to commodity prices primarily arises from the Company's purchases and sales of active pharmaceutical
+ingredients, including the raw material components for such active pharmaceutical ingredients. These are commodity products, whose prices
+may fluctuate significantly over short periods of time. The prices of the Company's raw materials generally fluctuate in line with commodity
+cycles, although the prices of raw materials used in the Company's active pharmaceutical ingredients business are generally more volatile.
+Cost of raw materials forms the largest portion of the Company's cost of revenues. Commodity price risk exposure is evaluated and managed
+through operating procedures and sourcing policies. As of March 31, 2018, the Company had not entered into any material derivative
+contracts to hedge exposure to fluctuations in commodity prices.
+NOTE: 46 DISCLOSURES UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
+The information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of
+information available with the Company.
+ANNUAL REPORT 2017-18
+123.2
+105.5
+March 31, 2017
+123.2
+(Interest - Nil)
+March 31, 2018
+105.5
+(Interest - Nil)
+As at
+Notes to the Standalone Financial Statements
+As at
+114
+The amount of further interest due and payable even in the succeeding year, until such date when
+the interest dues as above are actually paid
+The amount of interest accrued and remaining unpaid at the end of the accounting year
+The amount of interest due and payable for the year
+Interest due thereon remaining unpaid to any supplier as at the end of the accounting year
+The amount of interest paid along with the amounts of the payment made to the supplier beyond
+the appointed day
+Principal amount remaining unpaid to any supplier as at the end of the accounting year
+* in Million
+131.5
+(Funded)
+1,728.0
+6,343.2
+Trade payables
+35,308.1
+1,609.4
+33,698.7
+Borrowings
+Financial liabilities
+22,675.4
+318.3
+22,993.7
+1,595.1
+1,351.6
+15.5
+1,367.1
+5,759.4
+1,623.0
+40.0
+1,663.0
+91.8
+2,416.4
+11,787.8
+171.0
+Cash and cash equivalents
+2,324.6
+11,616.8
+5,759.4
+Trade receivables
+3.0
+584.9
+US Dollars
+South African
+As at March 31, 2017
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+112
+185.3
+60,046.8
+185.3
+3.0
+3,204.5
+56,069.1
+charges and trade commitments
+8,711.5
+16,027.2
+16,027.2
+Product settlement, claims, recall
+584.9
+Euro
+Financial assets
+* in Million
+20,726.0
+20,726.0
+60,673.5
+75.7
+7,555.7
+53,042.1
+* in Million
+As at
+March 31, 2017
+More than 3 years
+15,726.6
+1-3 years
+Forward exchange contracts
+Derivative
+Other financial liabilities
+Trade payables
+Borrowings
+Non derivative
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+Less than 1 year
+Total
+6.8
+89,494.7
+Rand
+Others
+Russian Rouble
+Euro
+US Dollars
+South African
+As at March 31, 2018
+a) Significant foreign currency risk exposure relating to trade receivables, cash and cash equivalents, borrowings and trade
+payables
+15,733.4
+The Company's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in US Dollars,
+Euros, South African Rand and Russian Rouble) and foreign currency borrowings (primarily in US Dollars). As a result, if the value of the Indian
+rupee appreciates relative to these foreign currencies, the Company's revenues and expenses measured in Indian rupees may decrease or
+increase and vice-versa. The exchange rate between the Indian rupee and these foreign currencies have changed substantially in recent
+periods and may continue to fluctuate substantially in the future. Consequently, the Company uses both derivative and non-derivative
+financial instruments, such as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial
+liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and
+recognised assets and liabilities.
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and
+prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as
+a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all
+foreign currency receivables and payables and all short term and long-term debt. The Company is exposed to market risk primarily related
+to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company's exposure to market risk is a
+function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.
+Market risk
+99.2
+99.2
+99.2
+99.2
+97,132.9
+75.7
+7,562.5
+Foreign exchange risk
+16.8
+Russian Rouble
+Rand
+14,298.5
+charges and trade commitments
+56,483.8
+0.3
+161.4
+270.1
+57,798.1
+b)
+c)
+Sensitivity
+14,298.5
+For the years ended March 31, 2018 and March 31, 2017, every 5% strengthening in the exchange rate between the Indian rupee
+and the respective currencies for the above mentioned financial assets/liabilities would decrease the Company's loss and increase the
+Company's equity by approximately 1,852.7 Million and ₹1,760.6 Million respectively. A 5% weakening of the Indian rupee and the
+respective currencies would lead to an equal but opposite effect.
+Derivative contracts
+4,632.8
+Others
+1,930.7
+Gratuity
+(Funded)
+Year ended
+March 31, 2017
+* in Million
+Year ended
+March 31, 2017
+Provident Fund
+(Funded)
+March 31, 2018
+The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in US Dollars,
+Euros, South African Rand and Russian Rouble, and foreign currency debt is primarily in US Dollars. The Company uses foreign currency
+forward contracts, foreign currency option contracts and currency swap contracts (collectively, "derivatives") to mitigate its risk of
+changes in foreign currency exchange rates. The counterparty for these contracts is generally a bank or a financial institution.
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the
+end of the reporting period does not reflect the exposure during the year.
+Product settlement, claims, recall
+882.5
+270.1
+* in Million
+Total
+Financial assets
+Trade receivables
+Cash and cash equivalents
+11,804.4
+909.6
+6,143.1
+1,918.4
+37.3
+1,955.7
+1,723.5
+5,046.2
+18.0
+1,741.5
+5,046.2
+12,714.0
+21,610.4
+976.6
+22,587.0
+Financial liabilities
+Borrowings
+37,356.5
+37,356.5
+Trade payables
+4,828.8
+882.5
+0.3
+1,117.9
+11.7
+1,129.6
+161.4
+83.5
+34.3
+14,892.1
+14,298.5
+14,892.1
+53.3
+62.5
+62.5
+62.5
+53.3
+30.9
+62.5
+83.5
+Subsidiaries
+0.1
+Associates
+Loan given
+Subsidiaries*
+Deposit given
+Subsidiaries
+Other liabilities
+Subsidiaries
+Advance from customers
+Subsidiaries
+Others
+Advance for supply of goods/services
+Others
+Capital advance
+* Net of Provision for doubtful loans and interest accrued and due thereon of March 31, 2017: * 726.9 Million
+128
+212.9
+212.9
+212.9
+212.9
+0.1
+3.4
+14,298.5
+(f)
+Alkaloida Chemical Company Zrt.
+Sun Pharma Holdings
+Faststone Mercantile Company Private Limited
+Neetnav Real Estate Private Limited
+Realstone Multitrade Private Limited
+Skisen Labs Private Limited
+Sun Pharma Laboratories Limited
+Sun Pharma De Venezuela, C.A.
+OOO "Sun Pharmaceutical Industries" Limited
+Sun Pharmaceutical Peru S.A.C.
+SPIL De Mexico S.A. DE C.V.
+Sun Pharma De Mexico S.A. DE C.V.
+Sun Farmaceutica Do Brasil Ltda.
+Sun Pharmaceutical Industries, Inc.
+Sun Pharmaceutical (Bangladesh) Limited
+Softdeal Trading Company Private Limited
+Green Eco Development Centre Limited
+a
+(1)
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 25, 2018
+SUNIL R. AJMERA
+Company Secretary
+124
+SUDHIR V. VALIA
+Wholetime Director
+Names of related parties and description of relationships
+Subsidiaries
+6,049.7
+Ranbaxy Pharmacie Generiques SAS
+Ranbaxy Drugs Limited (Refer Footnote 6)
+Vidyut Investments Limited (Refer Footnote 6)
+Gufic Pharma Limited (Refer Footnote 6)
+Ranbaxy Nigeria Limited
+The Taro Development Corporation
+Chattem Chemicals Inc.
+Zenotech Laboratories Limited (Refer Footnote 7)
+Foundation for Disease Elimination and Control of India
+(Refer Footnote 2)
+Sun Pharma (Netherlands) B.V. (Formerly known as Ranbaxy Ranbaxy (Poland) Sp. Z o.o.
+(Netherlands) B.V.)
+Sun Pharmaceutical Industries S.A.C. (formerly known as Ranbaxy - PRP
+(Peru) S.A.C.)
+Ranbaxy Italia S.P.A.
+Ranbaxy Ireland Limited
+Ranbaxy GmbH
+Office Pharmaceutique Industriel Et Hospitalier
+Basics GmbH
+Sun Pharma Egypt Limited LLC (Formerly known as Ranbaxy Egypt Ltd)
+Rexcel Egypt LLC
+Sun Pharma Medisales Private Limited (Formerly known as
+Solrex Pharmaceuticals Company) (Refer Footnote 5 & 6)
+Ranbaxy (Malaysia) Sdn. Bhd.
+Ranbaxy Pharmaceuticals Canada Inc.
+PI Real Estate Ventures, LLC
+Sun Pharma Switzerland Limited
+Sun Pharma East Africa Limited
+Pharmalucence, Inc.
+Universal Enterprises Private Limited
+Thallion Pharmaceutical Inc., (Refer Footnote 11)
+2 Independence Way LLC
+URL PharmPro, LLC
+Dungan Mutual Associates, LLC
+Mutual Pharmaceutical Company Inc.
+Sirius Laboratories Inc (Refer Footnote 4)
+Dusa Pharmaceuticals New York, Inc. (Refer Footnote 4)
+ANNEXURE "A"
+Sun Pharma ANZ Pty Ltd (formerly known as Ranbaxy Australia Pty Ltd)
+Ranbaxy Farmaceutica Ltda.
+Loan taken
+445.8
+544.3
+Rekha Sethi
+Vivek C. Sehgal (w.e.f. November 14, 2017)
+f
+Relatives of Key Managerial Personnel
+Aalok Shanghvi
+g
+Vidhi Shanghvi
+Others (Entities in which the KMP and relatives of KMP have control or significant influence)
+Makov Associates Limited
+Sun Pharma Advanced Research Company Limited.
+Sun Petrochemicals Private Limited
+Ramdev Chemicals Private Limited
+Sidmak Laboratories (India) Private Limited
+Aditya Medisales Limited
+United Medisales Private Limited
+Footnote
+1
+Incorporated/Acquired during year
+Ashwin S. Dani
+Chairman and Non-Executive Director
+Executive Director
+Executive Director
+Keki M. Mistry
+S&I Ophthalmic LLC (Refer Footnote 3)
+Artes Biotechnology GmbH
+Associate
+Zenotech Laboratories Limited (Refer Footnote 7)
+Daiichi Sankyo (Thailand) Ltd. (Refer Footnote 15)
+Medinstill Development LLC
+Key Managerial Personnel (KMP)
+Dilip S. Shanghvi
+2
+Managing Director
+Sudhir V. Valia
+Executive Director
+Sailesh T. Desai
+Israel Makov
+Kalyansundaram Subramanian (w.e.f. February 14, 2017)
+Non-Executive Directors
+S. Mohanchand Dadha
+Hasmukh S. Shah (resigned w.e.f. November 15, 2017)
+e
+d
+Incorporated/Acquired during the previous year
+Dissolved/Liquidated during the year
+12
+USD Nil (March 31, 2017: USD 30 Million) equivalent
+to Nil (March 31, 2017: 1,945.7 Million). The loan
+was taken on September 9, 2015 and has been repaid in
+current year.
+13
+Merged with Sun Pharmaceutical Industries Inc.
+14
+Merged with Sun Pharma Switzerland Limited.
+15
+Daiichi Sankyo (Thailand) Ltd.'s shares were sold during the previous year
+ANNUAL REPORT 2017-18
+STANDALONE FINANCIAL STATEMENTS
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2018
+ESOS 2005 provided that the grant price of options would be the latest available closing price on the stock exchange on which the shares of
+the erstwhile RLL were listed, prior to the date of the meeting of the Committee in which the options were granted. If the shares are listed
+on more than one stock exchange, then the stock exchange where there was highest trading volume on the said date were considered. The
+options vested evenly over a period of five years from the date of grant. Options lapse, if they are not exercised prior to the expiry date,
+which was ten years from the date of grant.
+ESOP 2011 provided that the grant price of options would be the face value of the equity share i.e. * 5 per share. The options vested evenly
+over a period of three years from the date of grant. Options lapse, if they were not exercised prior to the expiry date, which was three months
+from the date of the vesting. An ESOP Trust had been formed to administer ESOP 2011. Shares issued to the ESOP Trust were allocated to
+the eligible employees upon exercise of stock options from time to time.
+The Shareholders' Committee of Erstwhile RLL had approved issuance of options under the ESOS's as per details given below:
+Date of approval
+25 June 2003
+Thallion Pharmaceutical Inc., was acquired and merged with Taro Pharmaceuticals Inc. during the previous year.
+11
+Taro Pharmaceuticals (UK) Limited is under Liquidation.
+10
+45
+6
+7
+ANNEXURE "A"
+Dissolved/Liquidated during the previous year
+During the previous year Solrex Pharmaceuticals Company, a partnership firm has been converted into private limited company which is known as Sun
+Pharma Medisales Private Limited.
+Pursuant to scheme of arrangement u/s 230 to 232 of Companies Act 2013, for amalgamation of Sun Pharma Medisales Private Limited, Ranbaxy Drugs
+Limited, Gufic Pharma Limited and Vidyut Investments Limited into the company with effect from April 01, 2017[Refer Note 56(13)].
+Zenotech Laboratories Limited has ceased to be an associate and has become subsidiary of Sun Pharmaceutical Industries Limited with effect from
+July 27, 2017 [Refer Note 56(1)].
+3
+8
+9
+Taro Pharmaceuticals Ireland Limited is under Liquidation.
+126
+ANNUAL REPORT 2017-18
+STANDALONE FINANCIAL STATEMENTS
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2018
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+Holds voting power of 83.21% (beneficial ownership 74.82%) [March 31, 2017 81.87% (beneficial ownership 72.81%)]
+30 June 2005
+C
+Names of related parties where there are transactions and description of relationships
+Sun Pharmaceuticals France
+Sun Pharma Global FZE
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+Sun Global Canada Pty. Ltd.
+Sun Pharma Philippines, Inc.
+Sun Pharmaceuticals Korea Ltd.
+Sun Global Development FZE
+Caraco Pharmaceuticals Private Limited
+Sun Pharma Japan Ltd.
+Sun Pharma Healthcare FZE
+Morley & Company, Inc.
+Sun Laboratories FZE
+Taro Pharmaceutical Industries Ltd. (TARO) (Refer Footnote 8)
+Taro Pharmaceuticals Inc.
+Taro Pharmaceuticals U.S.A., Inc.
+Taro Pharmaceuticals North America, Inc.
+Terapia SA
+Sun Pharmaceuticals Germany GmbH
+Sun Pharmaceuticals Spain, S.L.U. (Refer Footnote 4)
+Sun Pharmaceuticals Italia S.R.L.
+Sun Pharmaceutical Industries (Europe) B.V.
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+121
+(III) Secured term loan from department of biotechnology of
+108.2 Million (March 31, 2017: 108.2 Million) has
+been secured by hypothecation of all assets of the
+Company. The loan is repayable in 10 equal half yearly
+installments commencing from December 14, 2019, last
+installment is due on June 14, 2024.
+Unsecured Loan under Foreign Currency Non Resident
+(FCNR B) Scheme of USD Nil (March 31, 2017: USD 50
+Million) equivalent to Nil (March 31, 2017: 3,242.8
+Million). The loan was taken on August 19, 2015 and has
+been repaid in current year.
+* 3,242.7 Million). The loan was taken on September 20,
+2012 and is repayable in 2 equal installments of USD 25
+Million each. The first installment of USD 25 Million is
+due on September 20, 2019 and last installment of USD
+25 Million is due on September 18, 2020.
+USD 50 Million (March 31, 2017 : USD 50 Million)
+equivalent to * 3,246.5 Million (March 31, 2017:
+AO Ranbaxy (formerly known as ZAO Ranbaxy)
+Ranbaxy South Africa (Pty) Ltd.
+1,037.7 Million). The loan was taken in tranches of USD
+16 Million on March 24, 2017 and USD 10 Million on
+June 30, 2017. The loan is repayable in 2 installments
+viz., the first installment of USD 16 Million is due on
+March 22, 2019 and last installment of USD 10 Million is
+due on June 28, 2019.
+USD 30 Million (March 31, 2017: USD Nil) equivalent
+to 1,947.9 Million (March 31, 2017: Nil). The loan
+was taken on September 08, 2017 and is repayable on
+September 07, 2020.
+* 3,242.7 Million). The loan was taken on August 11,
+2015 and is repayable on August 8, 2019.
+USD 50 Million (March 31, 2017: USD 50 Million)
+equivalent to 3,246.5 Million (March 31, 2017:
+* 6,485.5 Million). The loan was taken on June 4, 2013
+and is repayable in 3 installments viz., the first installment
+of USD 30 Million is due on May 31, 2020, second
+installment of USD 30 Million is due on November 30,
+2020 and last installment of USD 40 Million is due on
+November 30, 2021.
+USD 100 Million (March 31, 2017: USD 100 Million)
+equivalent to 6,493.0 Million (March 31, 2017:
+Sun Pharmaceuticals UK Limited
+Sun Pharmaceutical Industries (Australia) Pty Limited
+Aditya Acquisition Company Ltd.
+USD 26 Million (March 31, 2017 : USD 16 Million)
+equivalent to 1,688.2 Million (March 31, 2017:
+b Joint Ventures
+Ranbaxy Pharmaceutical (Pty) Ltd.
+Sonke Pharmaceuticals Proprietary Limited
+PHARMA
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2018
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+(1)
+Names of related parties and description of relationships
+Taro Pharmaceuticals Europe B.V.
+Taro Pharmaceuticals Ireland Limited (Refer Footnote 9)
+Taro International Ltd.
+Taro Pharmaceuticals (UK) Limited (Refer Footnote 10)
+Taro Hungary Intellectual Property Licensing Limited Liability Company (Refer Footnote 4)
+3 Skyline LLC
+One Commerce Drive LLC
+Taro Pharmaceutical Laboratories Inc
+Taro Pharmaceuticals Canada, Ltd.
+Taro Pharmaceutical India Private Limited (Refer Footnote 3)
+Alkaloida Sweden AB
+Dusa Pharmaceuticals, Inc.
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+125
+Zenotech Farmaceutica Do Brasil Ltda
+Zenotech Inc
+Laboratorios Ranbaxy, S.L.U.
+Ranbaxy (U.K.) Limited
+Ranbaxy Holdings (U.K.) Limited
+Ranbaxy Europe Limited (Refer Footnote 12)
+Ranbaxy Inc.
+Ranbaxy Pharmaceuticals, Inc. (Refer Footnote 13)
+Ranbaxy (Thailand) Company Limited
+Ohm Laboratories, Inc.
+Ranbaxy Laboratories, Inc. (Refer Footnote 13)
+Be-Tabs Investments (Pty) Ltd.
+Ranbaxy Signature LLC
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+Perryton Wind Power LLC (Refer Footnote 4)
+Insite Vision Incorporated
+Insite Vision Ltd. (Refer Footnote 3)
+Sun Pharmaceutical Medicare Limited (Refer Footnote 2)
+Ocular Technologies SARL (Refer Footnote 14)
+JSC Biosintez (Refer Footnote 2)
+Sun Pharmaceuticals Holdings USA, INC (Refer Footnote 2)
+Zenotech Laboratories Nigeria Limited
+Sun Pharmaceuticals Morocco LLC (formerly known as Ranbaxy Morocco LLC)
+for the year ended March 31, 2018
+09 May 2011
+ESOS-II
+ESOS 2005
+ESOP 2011
+average remaining
+contractual life
+(years)
+0.4
+Weighted-
+average remaining
+contractual life
+(years)
+169,913
+6.3
+6.3
+1.1
+(11,179)
+6.3
+6.3
+(93,015)
+6.3
+6.3
+(13,435)
+Weighted-
+Weighted-average
+exercise price (*)
+Exercise price (*)
+Stock options
+(numbers)
+Outstanding, end of the year
+Exercisable at the end of the year
+* Includes options exercised, pending allotment
+# Weighted average share price on the date of exercise * 802.00
+120
+52,284
+6.3
+6.3
+6.3
+(168)
+6.3
+(43,472)
+6.3
+6.3
+(8,644)
+6.3
+6.3
+March 31, 2017
+6.3
+Lapsed during the year
+6.3
+6.3
+8.65% (2.25 years)
+8.71% (3.25 years)
+40.47%
+Grant date fair value
+462.39 (1.25 years)
+(e)
+460.79 (2.25 years)
+459.16 (3.25 years)
+Expected volatility
+@@ Assumptions used are as applicable at the date of grant in the context of
+erstwhile RLL
+The Black Scholes option-pricing model was developed for
+estimating fair value of trade options that have no vesting
+restrictions and are fully transferable. Since options pricing models
+require use of subjective assumptions, changes therein can materially
+affect fair value of the options. The options pricing models do not
+necessary provide a reliable measure of fair value of options. The
+volatility in the share price is based on volatility of historical stock
+price of the erstwhile RLL for last 60 months.
+NOTE: 51 BORROWINGS
+(A) Details of long-term borrowings and current
+maturities of long-term debt (included under
+other current financial liabilities)
+(1)
+(a)
+Unsecured External Commercial Borrowings (ECBs)
+has 5 loans aggregating of USD 256 Million (March 31,
+2017: USD 256 Million) equivalent to 16,622.1 Million
+(March 31, 2017: 16,602.9 Million). For the ECB
+loans outstanding as at March 31, 2018, the terms of
+repayment for borrowings are as follows:
+USD Nil (March 31, 2017: USD 10 Million) equivalent
+to Nil (March 31, 2017: 648.6 Million). The loan
+was taken on June 30, 2011 and is repayable in 3 equal
+installments of USD 10 Million each at the end of 4th
+year, 5th year and 6th year. Last installment of USD 10
+Million has been repaid in current year. First and second
+installment of USD 10 Million each has been repaid in
+previous years.
+8.57% (1.25 years)
+(d)
+1.25, 2.25 and 3.25 years
+Expected life of options from the
+date(s) of grant
+6.3
+0.4
+941
+6.3
+6.3
+ANNUAL REPORT 2017-18
+STANDALONE FINANCIAL STATEMENTS
+Notes to the Standalone Financial Statements
+52,284
+for the year ended March 31, 2018
+The following table summarizes the assumptions used in calculating
+the grant date fair value for instrument granted in the year ended
+March 31, 2015: @@
+Particulars
+Grant Date
+Dividend yield
+Risk free interest rate
+Year ended March 31, 2015
+08-May-14
+0.43%
+(b)
+(c)
+During the current year, the Company has recorded a Stock-based
+employee compensation expense / (gain) of * (1.0) Million (March 31,
+2017: 30.8 Million). The amount has been determined under a fair
+value method wherein the grant date fair value of the options was
+calculated by using Black Scholes pricing model.
+Scheme
+Exercised during the year #
+Outstanding at the commencement of the year
+Lapsed during the year
+Outstanding at the end of the year
+Exercisable at the end of the year
+(119,105)
+263,680
+263,680
+270.0-562.5
+488.1
+270.0-562.5
+450.3
+1.5
+270.0-562.5
+450.3
+1.5
+* Includes options exercised, pending allotment
+$ Weighted average share price on the date of exercise * 565.14
+119
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+480.5
+270.0-562.5
+(18,893)
+Exercised during the year $
+In accordance with the above approval of issuance of options, stock options have been granted from time to time.
+Original No. of
+options approved
+4,000,000
+4,000,000
+3,000,000
+The stock options outstanding as on June 30, 2005 are proportionately adjusted in view of the sub-division of equity shares of the Erstwhile
+RLL from the face value of 10 each into 2 equity shares of 5 each.
+Pursuant to the Scheme of Amalgamation, Sun Pharmaceutical Industries Limited ('transferee company') formulated two Employee Stock
+Option Schemes, namely, (i) SUN Employee Stock Option Scheme-2015 (SUN-ESOS 2015) to administer ESOS 2005 (ii) SUN Employee
+Stock Option Plan-2015 (SUN-ESOP 2015) to administer ESOP 2011. These scheme provide that the number of transferee options issued
+shall equal to the product of number of transferor options outstanding on effectiveness of Scheme multiplied by the Share exchange ratio
+(0.80) and each transferee option shall have an exercise price per equity share equal to transferor option exercise price per equity shares
+divided by the share exchange ratio (0.80) and fractions rounded off to the next higher whole number. The terms and conditions of ESOS, of
+transferee company are not less favourable than those of ESOS's of erstwhile RLL. No new grants shall be made under these schemes and
+these schemes shall operate only for the purpose of administering the exercise of options already granted/vested on an employee pursuant
+to SUN-ESOS 2015 and SUN-ESOP 2015.
+The movement of the options (post split) granted under SUN-ESOS 2015
+March 31, 2018
+Notes to the Standalone Financial Statements
+Stock options
+(numbers)
+prices (*)
+Weighted-average
+exercise prices (₹)
+Weighted-
+average remaining
+contractual life
+(years)
+1.9
+Outstanding at the commencement of the year
+401,678
+270.0-562.5
+462.9
+Range of exercise
+Forfeited during the year
+for the year ended March 31, 2018
+Exercised during the year $
+270.0-562.5
+270.0-562.5
+462.9
+1.9
+462.9
+1.9
+$ Weighted average share price on the date of exercise 690.23
+The movement of the options (post split) granted under SUN-ESOP 2015
+March 31, 2018
+Stock options
+(numbers)
+Exercise price (₹)
+Weighted-average
+exercise price (*)
+Outstanding at the commencement of the year
+Forfeited during the year
+Exercised during the year #
+Lapsed during the year
+Outstanding, end of the year
+# Weighted average share price on the date of exercise *562.58
+401,678
+401,678
+521.7
+270.0-562.5
+(146,379)
+Lapsed during the year
+Outstanding at the end of the year
+Exercisable at the end of the year *
+* Includes options exercised, pending allotment
+March 31, 2017
+Stock options
+(numbers)
+Range of exercise
+prices (*)
+Weighted-average
+exercise prices (*)
+Outstanding at the commencement of the year
+Weighted-
+610,739
+270.0-703.0
+480.9
+(years)
+2.5
+(62,682)
+270.0-562.5
+500.1
+average remaining
+contractual life
+(11)
+The Company has not defaulted on repayment of loan and interest payment thereon during the year. The aforementioned unsecured
+ECBs are availed from various banks at floating rate linked to Libor (2.26% as at March 31, 2018) and secured loan from department of
+biotechnology have been availed at a range from 2% to 3%.
+As on March 31, 2017, secured short term borrowings had first charge on a pari-passu basis, by hypothecation of inventories and
+receivables, both present and future. The charge has been relinquished during the year ended March 31, 2018.
+12,384.5
+32,318.4
+12,384.5
+2.5
+2.5
+2.5
+Subsidiaries
+Dividend income on equity shares
+Subsidiaries
+Dividend income on preference shares
+Subsidiaries
+Loan repaid
+Loan taken
+Subsidiaries
+Sales of investment
+Subsidiaries
+Subsidiaries
+32,318.4
+28,122.1
+9,200.0
+28,122.1
+5.0
+Subsidiaries (March 31, 2017 * 24,066)
+70.4
+257.7
+Interest income
+2,000.7
+8,074.8
+2,000.7
+Subsidiaries
+8,074.8
+80.0
+40.0
+80.0
+17,219.9
+22,655.1
+17,219.9
+22,655.1
+9,200.0
+40.0
+0.0
+Advance received back
+Advance given
+Others
+162.3
+110.5
+Subsidiaries
+203.8
+152.6
+Reimbursement of expenses received
+136.2
+178.2
+Others
+11.6
+0.1
+Joint ventures
+712.5
+785.8
+Subsidiaries
+860.3
+42.1
+41.5
+Purchase of Investment
+Subsidiaries
+183.3
+Subsidiaries
+183.3
+Interest on loans received back
+4.8
+512.0
+Subsidiaries
+4.8
+2.5
+512.0
+0.4
+0.4
+7.7
+855.0
+7.7
+855.0
+Subsidiaries
+Loans / Deposit given
+Loans received back
+964.1
+Associates
+70.4
+Subsidiaries
+Receivables
+III) Balance Outstanding as at the end of the year
+(*) Remuneration to Key Managerial Personnel includes the refund received from Key Managerial Personnel in respect of excess remuneration paid for financial
+year 2014-15, 2015-16 & 2016-17.
+13.3
+77.3
+90.6
+20.1
+(23.0)
+Relatives of key managerial personnel
+Key managerial personnel (*)
+(2.9)
+27.8
+27.8
+Remuneration
+Subsidiaries
+Provision for doubtful debt
+Others
+Payable
+As at
+March 31, 2018
+23,901.0
+* in Million
+As at
+March 31, 2017
+Others
+0.6
+0.8
+Relatives of key managerial personnel
+4.2
+2.7
+Key managerial personnel
+137.7
+(562.2)
+Associates
+4,751.8
+Subsidiaries
+4,764.5
+5,299.6
+466.5
+3,494.1
+15,518.0
+15,051.5
+20,406.9
+4,176.2
+19.1
+Subsidiaries
+Provision for diminution in the value of Investment (net)
+647.4
+116.4
+647.4
+ANNEXURE "A"
+Others
+Subsidiaries
+Rent income
+Subsidiaries
+Interest expense
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+127
+233.6
+Others
+116.4
+26.6
+23.5
+17.6
+165.4
+254.3
+Subsidiaries
+165.4
+254.3
+Provision in respect of losses of a subsidiary
+63.4
+63.4
+(562.2)
+Provision for doubtful loans and interest accrued and due on Loans
+Associates
+1.0
+Subsidiaries
+0.7
+1.0
+Rent expense
+4.2
+9.0
+19.3
+0.7
+(B) Details of securities for Short term borrowings are as follows:
+15.0
+2.8
+3
+2
+1
+NOTE : 56
+Expenditure related to Corporate Social Responsibility as per Section
+135 of the Companies Act, 2013 read with Schedule VII thereof:
+* 27.0 Million (Previous Year 24.1 Million).
+NOTE: 55
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+24,997.0
+(2,000.6)
+23,542.7
+(2,520.5)
+(486.8)
+29.8
+437.8
+4
+5
+Zenotech Laboratories Limited ('Zenotech'), an associate of
+the Company, undertook a rights issue of its equity shares
+in which the Company participated and subscribed to equity
+shares worth * 855 Million. On account of such participation,
+Zenotech became a subsidiary of the Company effective July
+25, 2017. In compliance with the relevant provisions of IND AS
+103, the Company has reversed impairment in the books to the
+extent of fair value of equity shares determined on the basis of
+rights issue price amounting to 725.7 Million.
+Intangible assets consisting of trademarks, designs, technical
+know-how, non compete fees and other intangible assets
+are available to the Company in perpetuity. The amortisable
+amount of intangible assets is arrived at based on the
+management's best estimates of useful lives of such assets
+after due consideration as regards their expected usage, the
+product life cycles, technical and technological obsolescence,
+market demand for products, competition and their expected
+future benefits to the Company.
+10
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+123
+In accordance with Ind AS 108 "Operating Segments", segment
+information has been given in the consolidated Ind AS financial
+statements, and therefore, no separate disclosure on segment
+information is given in these financial statements.
+In September 2013, the USFDA had put the Mohali facility
+under import alert and was also subjected to certain provisions
+of the consent decree of permanent injunction entered in
+January 2012 by erstwhile Ranbaxy Laboratories Ltd (which
+was merged with Sun Pharmaceutical Industries Ltd in March
+2015). In March 2017, the USFDA lifted the import alert
+and indicated that the facility was in compliance with the
+requirements of cGMP provisions mentioned in the consent
+decree. The facility will continue to demonstrate sustainable
+CGMP compliance for a fixed period of time as required by the
+consent decree. The Company has started manufacturing and
+distributing products to the U.S from Mohali facility.
+265.8
+In December 2015, the USFDA issued a warning letter to
+the manufacturing facility at Halol. Post the November 2016
+inspection, the USFDA re-inspected Halol facility in February
+2018. At the conclusion of the inspection, USFDA issued
+a Form-483 with three observations. The Company has
+submitted its response documenting the corrective measures
+to resolve the Form-483 observations. The Company continues
+to manufacture and distribute products to the U.S from
+Halol facility and at the same time is working closely and co-
+operatively with the USFDA to resolve the matter.
+all corrective measures to address the observations made by
+the US-FDA with the help of third party consultant. Substantial
+progress has been made at the Karkhadi facility in terms of
+completing all the action items to address the observations
+made by the US-FDA in its warning letter issued in May 2014.
+The Company is continuing to work closely and co-operatively
+with the US-FDA to resolve the matter. The contribution of this
+facility to Company's revenues is not significant.
+9
+8
+7
+6
+Since the US-FDA import alert at Karkhadi facility in March
+2014, the Company remained fully committed to implement
+Out of a MAT credit entitlement of 8,222.7 Million which
+was written down by the erstwhile RLL during the quarter
+ended December 31, 2014, an amount of 7,517.0 Million
+was recognised by the Company in the year ended March
+31, 2015, on a reassessment by the Management, based on
+convincing evidence that the combined amalgamated entity
+would pay normal income tax during the specified period and
+would therefore be able to utilize the MAT credit entitlement
+so recognised.
+The Company is a defendant in respect of a civil antitrust
+litigation relating to a product Modafinil, in which the plaintiff's
+have alleged that the Company excluded its generic version
+of Modafinil from the US market and hence have claimed
+damages under the Sherman Act of US. This case is pending
+in the United States District Court for the Eastern District
+of Pennsylvania. The Company and one of its wholly owned
+subsidiaries entered into settlements with certain plaintiffs
+(Apotex Corporation and Retailer Purchasers) in the month of
+July 2017 and September 2017 whereby the Company agreed
+to pay an aggregate amount of USD 147 Million (9,505.0
+Million). This amount has been provided for in the standalone
+financial statements and disclosed as an exceptional item.
+The Company continues to litigate the case against the other
+plaintiff's (other than those settled).
+The US-FDA, on January 23, 2014, had prohibited using API
+manufactured at Toansa facility for manufacture of finished
+drug products intended for distribution in the U.S. market.
+Consequentially, the Toansa manufacturing facility was subject
+to certain provisions of the consent decree of permanent
+injunction entered in January 2012 by erstwhile Ranbaxy
+Laboratories Ltd (which was merged with Sun Pharmaceutical
+Industries Ltd in March 2015). In addition, the Department of
+Justice of the USA ('US DOJ'), United States Attorney's Office
+for the District of New Jersey had also issued an administrative
+subpoena dated March 13, 2014 seeking information primarily
+related to Toansa manufacturing facility for which a Form 483
+containing findings of the US-FDA was issued in January 2014.
+The Company is continuing to fully co-operate and provide
+requisite information to the US DOJ.
+11
+840.0
+24,997.0
+726.9
+4.8
+53.4
+53.4
+in Million
+Maximum balance
+March 31, 2017
+March 31, 2017
+As at
+Maximum balance
+March 31, 2018
+March 31, 2018
+As at
+Less: Provision for doubtful loans /
+advances
+Considered doubtful
+Interest bearing with specified payment schedule:
+Zenotech Laboratories Limited, India *
+Loans / advances outstanding from an associate
+Loans
+Loans / advances outstanding from subsidiaries
+Green Eco Development Centre Ltd
+Zenotech Laboratories Limited, India
+NOTE: 53 LOANS / ADVANCES GIVEN TO SUBSIDIARIES AND ASSOCIATES
+NOTE: 52 RELATED PARTY DISCLOSURES (IND AS 24) AS PER ANNEXURE "A"
+726.9
+726.9
+726.9
+* includes interest accrued on loans amounting to 214.9 Million.
+Product and Sales
+related*
+26,206.6
+March 31, 2017
+Year ended
+* in Million
+related *
+Product and Sales
+Year ended
+March 31, 2018
+122
+770.6
+(*) includes provision for trade commitments, discounts, rebates, price reduction and product returns
+Less: Utilisation / settlement
+Add(less): Foreign currency exchange fluctuation
+Add: Unwinding of discounts on provisions
+Add: Provision for the year
+At the commencement of the year
+In respect of any present obligation as a result of past event that could lead to a probable outflow of resources, provisions has been made,
+which would be required to settle the obligation. The said provisions are made as per the best estimate of the management and disclosure as
+per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has been given below:
+NOTE: 54
+These loans have been granted to the above entities for the purpose of their business.
+At the end of the year
+59.2
+12
+Post implementation of Goods and Service Tax ("GST") with
+effect from July 01, 2017, sale of products is disclosed net of
+GST. Sale of products for the previous year included excise
+duty which is now subsumed in GST. Sale of products for the
+year ended March 31, 2018 includes excise duty for the period
+ended June 30, 2017. Accordingly, sale of products for the year
+ended March 31, 2018 are not comparable with year ended
+March 31, 2017.
+58,994.8
+638.5
+283.8
+43.2
+283.8
+681.7
+15.3
+149.5
+12.9
+1,404.6
+1,432.8
+Year ended
+March 31, 2017
+in Million
+2,035.4
+1,885.9
+March 31, 2018
+Year ended
+Rendering of service
+26,126.3
+29,220.4
+26,070.2
+38.8
+5.7
+1,142.4
+1,160.2
+10,758.3
+10,693.4
+313.2
+272.1
+40.9
+1,060.7
+Others
+559.6
+872.6
+0.5
+17.9
+21.5
+17.9
+22.0
+17.3
+29,774.4
+1,373.9
+The board of directors of the Company at its meeting held
+on May 25, 2018, approved the scheme of arrangement
+between the Company, Sun Pharma (Netherlands) B.V. and Sun
+Pharmaceutical Holdings USA Inc. (both being wholly owned
+subsidiaries of the Company) which inter-alia, envisages spin-
+off of the specified investment undertaking of the Company.
+Further, the board of directors of the Company at its meeting
+held on November 14, 2017, had approved the scheme of
+arrangement between Company and Sun Pharma Global FZE
+(wholly owned subsidiary of the Company) which inter-alia,
+envisages demerger of unbranded generic pharmaceutical
+undertaking of Sun Pharma Global FZE into the Company.
+The above schemes shall be effective post receipt of required
+approvals and accordingly, the above financial statements do
+not reflect the impact, if any, on account of the schemes.
+Associates
+Reimbursement of expenses paid
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 25, 2018
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+The Company has sold 175,000,000 (March 31, 2017 :
+475,000,000) optionally convertible preference shares of Sun
+Pharma Holdings to wholly owned subsidiary Sun Pharma
+Laboratories Limited. The Company has recorded gain of
+1,328 Million (March 31, 2017: 2,307.8 Million).
+Accordingly, all the assets, liabilities and other reserves
+of transferor companies were aggregated with those of
+the Company at their respective book values from the
+earliest period presented. As prescribed by the Scheme no
+consideration was paid as the transferor Companies were
+wholly owned subsidiaries of the Company. Accordingly, the
+resultant difference amounting to 535.6 Million was credited
+to capital reserve account.
+The amalgamation was accounted under the "pooling of
+interest" method prescribed under Ind AS 103 - Business
+Combinations, as prescribed by the Scheme.
+Consequent to the amalgamation prescribed by the Scheme,
+all the assets and liabilities of transferor companies were
+transferred to and vested in the Company with effect from
+April 01, 2017 ("the Appointed Date")
+The Board of Directors of the Company at their meeting held
+on November 10, 2016 and the shareholders and unsecured
+creditors of the Company at their respective meetings held on
+June 20, 2017 approved the proposed scheme of arrangement
+u/s 230 to 232 of the Companies Act, 2013 for amalgamation
+of Sun Pharma Medisales Private Limited, Ranbaxy Drugs
+Limited, Gufic Pharma Limited and Vidyut Investments
+Limited into the Company with effect from April 01, 2017, the
+appointed date. On completion of all the formalities of the
+merger of the above companies with the Company, the said
+merger became effective September 8, 2017.
+14
+13
+The Company completed buy-back of 7,500,000 equity shares
+of 1 each (representing 0.31% of total pre buy back paid up
+equity capital) on October 18, 2016, from the shareholders
+on a proportionate basis by way of a tender offer at a price of
+* 900 per equity share for an aggregate amount of * 6750.0
+Million in accordance with the provisions of the Companies Act,
+2013 and the SEBI (Buy Back of Securities) Regulations, 1998.
+This buyback of equity shares was approved by the Board of
+Directors of the Company at its meeting held on June 23, 2016.
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+(II) Detail of related party transaction during the year ended March 31, 2018:
+ANNEXURE "A"
+Joint ventures
+Others
+Subsidiaries
+Receiving of service
+Others
+Subsidiaries
+Sale of property, plant and equipment
+Others
+Associates
+Subsidiaries
+Subsidiaries
+Others
+Subsidiaries
+Purchase of property, plant and equipment
+Others
+Associates
+Subsidiaries
+Purchase of goods
+Type of Transaction
+Sale of goods
+Ranbaxy Europe Limited is under Liquidation.
+Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term employee benefits
+recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee benefits are lump sum amounts provided on the basis of
+actuarial valuation, the same is not included above and there is no Share-based payments to key managerial personnel of the Company.
+6,049.7
+(XV) Other comprehensive income
+(A) Items that will not be reclassified to profit or loss
+(246.6)
+(7.8)
+26,083.5
+4,468.0
+21,615.5
+299.6
+(200.3)
+78,462.3
+8,818.6
+69,643.7
+Total (A)
+136
+(a) Re-measurements of the defined benefit plans
+Income tax on above
+782.7
+(766.9)
+(274.8)
+56.6
+507.9
+(710.3)
+(XIV) Profit for the year attributable to owners of the Company
+(b) Equity instruments through other comprehensive income
+(XIII) Non-controlling interests
+(XI) Share of profit/(loss) of joint ventures (net of tax)
+Deferred tax charge/(credit)
+(720.6)
+8,069.3
+b)
+Deferred tax charge/(credit) - exceptional
+74
+2,544.5
+Total tax expense (VIII)
+50
+8,451.9
+(IX) Profit for the year before share of profit/(loss) of associates and joint
+26,337.9
+12,115.7
+78,363.0
+ventures (VII-VIII)
+(X) Share of profit/(loss) of associates (net of tax)
+(XII) Profit for the year before non-controlling interests (IX+X+XI)
+a)
+1,288.3
+Income tax on above
+(4.7)
+8.7
+(89.6)
+(4.7)
+(b) Effective portion of gains and loss on designated portion of hedging
+instruments in a cash flow hedge
+(75.7)
+46.2
+(c) Exchange differences in translating the financial statements of foreign
+operations
+4,025.7
+(10,461.7)
+(d) Exchange differences on translation of net investment in a foreign
+operations
+(400.9)
+3,459.5
+(10,420.2)
+5,232.5
+(98.3)
+(3,741.4)
+March 31, 2017
+Year ended
+March 31, 2018
+(23.2)
+1,265.1
+(3,741.4)
+1,773.0
+(4,451.7)
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Statement of Profit and Loss
+for the year ended March 31, 2018
+in Million
+Particulars
+(B)
+Items that may be reclassified to profit or loss
+(a) Debt instruments through other comprehensive income
+Income tax on above
+Notes
+Year ended
+(14,871.9)
+Deferred tax
+6,628.0
+Notes
+Year ended
+March 31, 2018
+in Million
+Year ended
+March 31, 2017
+31
+264,894.6
+315,784.4
+32
+8,387.6
+6,231.5
+273,282.2
+322,015.9
+Cost of materials consumed
+33
+44,626.0
+(IV) Expenses
+51,246.1
+(III) Total income (I+II)
+(I) Revenue from operations
+Partner
+Membership No.: 105754
+Mumbai, May 25, 2018
+C. S. MURALIDHARAN
+Chief Financial Officer
+SUNIL R. AJMERA
+Company Secretary
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+SUDHIR V. VALIA
+Wholetime Director
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 25, 2018
+135
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Consolidated Statement of Profit and Loss
+for the year ended March 31, 2018
+Particulars
+(II) Other income
+4,046.4
+Purchases of stock-in-trade
+32,777.6
+84,561.3
+Total expenses (IV)
+228,987.4
+231,537.2
+(V) Profit before exceptional items and tax (III-IV)
+44,294.8
+90,478.7
+(VI) Exceptional item
+62
+(9,505.0)
+(VII) Profit before tax (V+VI)
+34,789.8
+90,478.7
+(VIII) Tax expense
+Current tax
+80,896.0
+27,313.8
+37
+12,647.5
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+34
+2,307.0
+(2,716.3)
+Employee benefits expense
+35
+53,670.5
+49,023.0
+Finance costs
+36
+5,175.7
+3,998.0
+Depreciation and amortisation expense
+3 (a & b)
+14,998.4
+Other expenses
+per PAUL ALVARES
+31,316.0
+4,754.8
+CULTURE
+Other comprehensive income (OCI)
+Equity
+instrument
+through OCI through OCI
+Foreign Effective
+currency portion of
+translation cash flow
+Attributable
+to owners
+of Parent
+Company
+Non-
+controlling
+interests
+* in Million
+TOTAL
+reserve
+329,824.8
+40,852.5
+15,943.1
+4,081.1
+8,818.6 78,462.3
+(4,410.2)
+(8,927.4) (1,534.3)
+PHARMA
+7.5
+31.3
+(6,742.5)
+(34.2)
+3
+☐☐☐☐
+controlling interests
+arising on the
+acquisition of JSC
+Biosintez
+Transfer from surplus in
+consolidated statement
+of profit and loss as
+per the local law of an
+overseas subsidiary
+Transfer on exercise of
+share options
+Balance as at
+March 31, 2017
+32.3
+1,041.7
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+43.8
+69,643.7
+(4,410.2)
+249.7
+249.7
+54.8
+(54.8)
+507.5
+11,894.6
+2,083.4
+26.4
+43.8
+7.5
+1.1 35,578.0 306,456.9
+339.7
+7,015.7
+366,396.7 37,908.6
+50.6
+(10,447.5)
+(8,927.4)
+(10,110.3)
+(6,750.0)
+(3,741.4)
+32.3
+(3,741.4)
+(8,927.4)
+56,306.1
+7,284.3
+63,590.4
+(2,406.8)
+(490.0)
+(30.4)
+(2,437.2)
+(490.0)
+32.3
+24.8
+(6,750.0)
+(34.2)
+24.8
+(34.2)
+63,590.4
+48.9
+456.9 18,585.2
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Mumbai, May 25, 2018
+C. S. MURALIDHARAN
+Chief Financial Officer
+SUNIL R. AJMERA
+Company Secretary
+9.0
+9.0
+29.0
+29.0
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+SUDHIR V. VALIA
+Wholetime Director
+The accompanying notes are an integral part of the consolidated financial statements
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 25, 2018
+Diluted (in)
+Earnings per equity share (face value per equity share - ₹ 1)
+(13,337.6)
+477.7
+(1,534.3)
+26,370.3
+4,945.7
+56,306.1
+7,284.3
+52
+Total (B)
+(XV) Total other comprehensive income (A + B)
+(XVI) Total comprehensive income for the year (XII+XV)
+Other comprehensive income for the year attributable to:
+- Owners of the Company
+- Non-controlling interests
+Total comprehensive income for the year attributable to:
+- Owners of the Company
+- Non-controlling interests
+Basic (in)
+1,041.7
+137
+Consolidated Statement of Changes in Equity
+Exchange difference
+arising on translation of
+foreign operations
+Other comprehensive
+income for the year, net
+of income tax
+Total comprehensive
+income for the year
+Payment of dividend
+Dividend distribution
+tax
+Recognition of share-
+based payments to
+employees
+Issue of equity shares
+Buy-back of equity
+shares (Refer note 65)
+Expenditure on buy-
+back of equity shares
+Buy-back of equity
+shares by overseas
+subsidiary Company
+Transfer to capital
+redemption reserve
+on buy-back of equity
+shares
+Transfer from surplus in
+consolidated statement
+of profit and loss
+Additional non-
+Profit for the year
+138
+Balance as at
+March 31, 2016
+Legal General
+reserve
+for the year ended March 31, 2018
+Particulars
+1.1 35,578.0
+Share Capital
+Securities
+application reserve premium
+reserve
+Reserves and surplus
+Amalgamation
+Debenture Share option
+redemption
+reserve
+outstanding
+account
+reserve
+Capital
+redemption
+reserve
+reserve
+Independent Auditor's Report
+79,253.7
+For S RBC & CO LLP
+Consolidated Balance Sheet
+as at March 31, 2018
+* in Million
+(c)
+Particulars
+ASSETS
+(1) Non-current assets
+(a)
+Property, plant and equipment
+(b) Capital work-in-progress
+Goodwill (Net)
+As at
+As at
+Notes
+March 31, 2018
+PHARMA
+March 31, 2017
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Date: May 25, 2018
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON
+THE CONSOLIDATED FINANCIAL STATEMENTS OF SUN PHARMACEUTICAL
+INDUSTRIES LIMITED
+Inherent Limitations of Internal Financial Controls Over Financial Reporting With Reference to these
+Consolidated Financial Statements
+Because of the inherent limitations of internal financial controls over financial reporting with reference to these consolidated financial
+statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud
+may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference
+to these consolidated financial statements to future periods are subject to the risk that the internal financial control over financial reporting
+with reference to these consolidated financial statements may become inadequate because of changes in conditions, or that the degree of
+compliance with the policies or procedures may deteriorate.
+Opinion
+In our opinion, the Holding Company and its subsidiary companies, which are companies incorporated in India, have, maintained in all
+material respects, adequate internal financial controls over financial reporting with reference to these consolidated financial statements and
+such internal financial controls over financial reporting with reference to these consolidated financial statements were operating effectively
+as at March 31, 2018, based on the internal control over financial reporting criteria established by the Holding Company considering the
+essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued
+by the Institute of Chartered Accountants of India.
+Other Matters
+Our report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial
+reporting with reference to these consolidated financial statements of the Holding Company, insofar as it relates to these 3 subsidiary
+companies, which are companies incorporated in India, is based on the corresponding reports of the auditors of such subsidiary, incorporated
+in India.
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No.: 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Place: Mumbai
+133
+ANNUAL REPORT 2017-18
+За
+84,952.9
+Investments
+(ii) Loans
+(iii) Other financial assets
+(i)
+Deferred tax assets (Net)
+(j)
+Income tax assets (Net)
+45
+67852
+2,748.6
+4,605.4
+252.8
+429.5
+27,521.1
+22,424.7
+4,575.1
+(i)
+91,590.3
+Financial assets
+Investments in joint ventures
+14,344.7
+15,647.6
+48
+56,067.1
+55,362.2
+(d) Other intangible assets
+3b
+40,869.1
+36,436.6
+(e) Intangible assets under development
+10,306.9
+12,366.2
+(f)
+Investments in associates
+(g)
+(h)
+698.1
+132
+Meaning of Internal Financial Controls Over Financial Reporting With Reference to these Consolidated Financial
+Statements
+(b)
+(c)
+statements, other financial information and auditor's reports have been furnished to us by the management. The consolidated Ind AS
+financial statements also include the Group's share of net loss of 254.4 Million for the year ended March 31, 2018, as considered
+in the consolidated financial statements, in respect of 8 associates and joint ventures, whose financial statements, other financial
+information have been audited by other auditors and whose reports have been furnished to us by the Management. Our opinion on the
+consolidated Ind AS financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries,
+joint ventures and associates, and our report in terms of sub-sections (3) of Section 143 of the Act, in so far as it relates to the aforesaid
+subsidiaries, joint ventures and associates, is based solely on the reports of such other auditors.
+Certain of these subsidiaries are located outside India whose financial statements and other financial information have been prepared in
+accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors
+under generally accepted auditing standards applicable in their respective countries. The Company's management has converted
+the financial statements of such subsidiaries located outside India from accounting principles generally accepted in their respective
+countries to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company's
+management. Our opinion in so far as it relates to the balances and affairs of such subsidiaries located outside India is based on the
+report of other auditors and the conversion adjustments prepared by the management of the Company and audited by us.
+The accompanying consolidated Ind AS financial statements include unaudited financial statements and other unaudited financial
+information in respect of 39 subsidiaries, whose financial statements and other financial information, without giving effect to elimination
+of intra group transactions, reflect total assets of 217,210.8 Million and net assets of 208,537.0 Million as at March 31, 2018, and
+total revenues of ₹6,131.0 Million and net cash outflows of ₹ 496.9 Million for the year ended on that date. These unaudited financial
+statements and other unaudited financial information have been furnished to us by the management. Our opinion, in so far as it relates
+amounts and disclosures included in respect of these subsidiaries, joint ventures and associates, and our report in terms of sub-sections (3)
+of Section 143 of the Act in so far as it relates to the aforesaid subsidiaries, joint ventures and associates, is based solely on such unaudited
+financial statement and other unaudited financial information. In our opinion and according to the information and explanations given to
+us by the Management, these financial statements and other financial information are not material to the Group.
+The consolidated Ind AS financial statements of the Company for the year ended March 31, 2017, included in these consolidated Ind
+AS financial statements, have been audited by the predecessor auditor who expressed an unmodified opinion on those statements on
+May 26, 2017.
+Our opinion above on the consolidated Ind AS financial statements, and our report on Other Legal and Regulatory Requirements below, is not
+modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial
+statements and other financial information certified by the Management.
+Report on Other Legal and Regulatory Requirements
+As required by section 143 (3) of the Act, based on our audit and on the consideration of report of the other auditors on separate financial
+statements and the other financial information of subsidiaries, associates and joint ventures, as noted in the ‘other matter' paragraph we
+report, to the extent applicable, that:
+(a)
+(b)
+(c)
+(d)
+We / the other auditors whose reports we have relied upon have sought and obtained all the information and explanations which to the
+best of our knowledge and belief were necessary for the purpose of our audit of the aforesaid consolidated Ind AS financial statements;
+In our opinion proper books of account as required by law relating to preparation of the aforesaid consolidation of the financial
+statements have been kept so far as it appears from our examination of those books and reports of the other auditors;
+To the Members of Sun Pharmaceutical Industries Limited
+The consolidated Balance Sheet, consolidated Statement of Profit and Loss including the Statement of Other Comprehensive Income,
+the consolidated Cash Flow Statement and consolidated Statement of Changes in Equity dealt with by this Report are in agreement
+with the books of account maintained for the purpose of preparation of the consolidated Ind AS financial statements;
+Independent Auditor's Report
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+To the Members of Sun Pharmaceutical Industries Limited
+CONSOLIDATED FINANCIAL STATEMENTS
+Report on the Consolidated Ind AS Financial Statements
+We have audited the accompanying consolidated Ind AS financial statements of Sun Pharmaceutical Industries Limited (hereinafter referred
+to as "the Holding Company"), its subsidiaries (the Holding Company and its subsidiaries together referred to as "the Group") its associates
+and joint ventures, comprising of the consolidated Balance Sheet as at March 31, 2018, the consolidated Statement of Profit and Loss
+including other comprehensive income, the consolidated Cash Flow Statement, the consolidated Statement of Changes in Equity for the year
+then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the consolidated
+Ind AS financial statements").
+Management's Responsibility for the Consolidated Ind AS Financial Statements
+The Holding Company's Board of Directors is responsible for the preparation of these consolidated Ind AS financial statements in terms of
+the requirement of the Companies Act, 2013 ("the Act") that give a true and fair view of the consolidated financial position, consolidated
+financial performance including other comprehensive income, consolidated cash flows and consolidated statement of changes in equity
+of the Group including its Associates and Joint Ventures in accordance with accounting principles generally accepted in India, including
+the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standard)
+Rules, 2015, as amended. The respective Board of Directors of the companies included in the Group and of its associates and joint ventures
+are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the
+assets of the Group and of its associates and joint ventures and for preventing and detecting frauds and other irregularities; the selection
+and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design,
+implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and
+completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair
+view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the
+consolidated Ind AS financial statements by the Directors of the Holding Company, as aforesaid.
+Auditor's Responsibility
+Our responsibility is to express an opinion on these consolidated Ind AS financial statements based on our audit. While conducting the audit,
+we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included
+in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards
+on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards
+require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial
+statements are free from material misstatement.
+An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
+statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the
+consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial
+control relevant to the Holding Company's preparation of the consolidated Ind AS financial statements that give a true and fair view in order
+to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting
+policies used and the reasonableness of the accounting estimates made by the Holding Company's Board of Directors, as well as evaluating
+the overall presentation of the consolidated financial statements. We believe that the audit evidence obtained by us and the audit evidence
+obtained by the other auditors in terms of their reports referred to in sub-paragraph (a) of the Other Matters paragraph below, is sufficient
+and appropriate to provide a basis for our audit opinion on the consolidated Ind AS financial statements.
+Opinion
+In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of
+other auditors on separate financial statements and on the other financial information of the subsidiaries, associates and joint ventures, the
+aforesaid consolidated Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair
+view in conformity with the accounting principles generally accepted in India of the consolidated state of affairs of the Group, its associates
+and joint ventures as at March 31, 2018, their consolidated profit including other comprehensive income, their consolidated cash flows and
+consolidated statement of changes in equity for the year ended on that date.
+Other Matter
+(a)
+We did not audit the financial statements and other financial information, in respect of 24 subsidiaries, whose Ind AS financial
+statements, without giving effect to elimination of intra group transactions, include total assets of 566,133.5 Million and net assets of
+* 418,322.5 Million as at March 31, 2018, and total revenues of 185,173.2 Million and net cash outflows of 6,056.8 Million for the
+year ended on that date. These financial statement and other financial information have been audited by other auditors, which financial
+129
+PHARMA
+A company's internal financial control over financial reporting with reference to these consolidated financial statements is a process designed
+to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
+purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting with
+reference to these consolidated financial statements includes those policies and procedures that (1) pertain to the maintenance of records
+that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
+assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted
+accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of
+management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised
+acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
+In our opinion, the aforesaid consolidated Ind AS financial statements comply with the Indian Accounting Standards specified under
+section 133 of the Act, read with Companies (Indian Accounting Standard) Rules, 2015, as amended;
+ANNUAL REPORT 2017-18
+Membership No.: 105754
+Place: Mumbai
+Date: May 25, 2018
+131
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON
+THE CONSOLIDATED FINANCIAL STATEMENTS OF SUN PHARMACEUTICAL
+INDUSTRIES LIMITED
+Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
+2013 ("the Act")
+In conjunction with our audit of the consolidated financial statements of Sun Pharmaceutical Industries Limited as of and for the year ended
+March 31, 2018, we have audited the internal financial controls over financial reporting of Sun Pharmaceutical Industries Limited (hereinafter
+referred to as the "Holding Company") and its subsidiary companies, which are companies incorporated in India, as of that date.
+Management's Responsibility for Internal Financial Controls
+The respective Board of Directors of the Holding Company, its subsidiary companies, which are companies incorporated in India, are
+responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria
+established by the Holding Company considering the essential components of internal control stated in the Guidance Note on Audit of
+Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include
+the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly
+and efficient conduct of its business, including adherence to the respective company's policies, the safeguarding of its assets, the prevention
+and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
+information, as required under the Act.
+Auditor's Responsibility
+Our responsibility is to express an opinion on the company's internal financial controls over financial reporting with reference to these
+consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
+Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, both, issued by Institute of Chartered
+Accountants of India, and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial
+controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to
+obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these consolidated
+financial statements was established and maintained and if such controls operated effectively in all material respects.
+Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial
+reporting with reference to these consolidated financial statements and their operating effectiveness. Our audit of internal financial controls
+over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these
+consolidated financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
+effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the
+assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
+We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred
+to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial
+controls over financial reporting with reference to these consolidated financial statements.
+Partner
+130
+per PAUL ALVARES
+Chartered Accountants
+Independent Auditor's Report
+To the Members of Sun Pharmaceutical Industries Limited
+CONSOLIDATED FINANCIAL STATEMENTS
+(e)
+(f)
+On the basis of the written representations received from the directors of the Holding Company as on March 31, 2018 taken on record
+by the Board of Directors of the Holding Company and the reports of the statutory auditors who are appointed under Section 139 of
+the Act, of its subsidiary companies, associate companies and joint ventures incorporated in India, none of the directors of the Group's
+companies, its associates and joint ventures incorporated in India is disqualified as on March 31, 2018 from being appointed as a
+director in terms of Section 164 (2) of the Act.
+With respect to the adequacy and the operating effectiveness of the internal financial controls over financial reporting with reference
+to these consolidated Ind AS financial statements of the Holding Company and its subsidiary companies, refer to our separate report in
+"Annexure 1" to this report;
+With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and
+Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us and
+based on the consideration of the report of the other auditors on separate financial statements as also the other financial information
+of the subsidiaries, associates, joint ventures, as noted in the 'Other matter' paragraph:
+i.
+ii.
+iii.
+The consolidated Ind AS financial statements disclose the impact of pending litigations on its consolidated financial position of the
+Group, its associates and joint ventures - Refer Note 40 to the consolidated Ind AS financial statements;
+Provision has been made in the consolidated Ind AS financial statements, as required under the applicable law or accounting
+standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer (a) Note 23 and
+Note 29 to the consolidated Ind AS financial statements in respect of such items as it relates to the Group, its associates and joint
+ventures and (b) the Group's share of net profit/loss in respect of its associates;
+There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by
+the Holding Company, its subsidiaries, associates and joint ventures incorporated in India, except a sum of 16.9 Million, which is
+held in abeyance due to pending legal cases.
+For S RBC & CO LLP
+ICAI Firm Registration No.: 324982E/E300003
+Chartered Accountants
+1,049.2
+51
+CONSOLIDATED FINANCIAL STATEMENTS
+* in Million
+Notes
+As at
+March 31, 2018
+As at
+March 31, 2017
+19
+20
+2,399.3
+378,606.3
+2,399.3
+363,997.4
+381,005.6
+366,396.7
+38,841.6
+37,908.6
+TOTAL EQUITY AND LIABILITIES
+419,847.2
+Total liabilities
+(d) Current tax liabilities (Net)
+Provisions
+(c)
+Deferred tax liabilities (Net)
+(d) Other non-current liabilities
+Total non-current liabilities
+(2) Current liabilities
+Financial liabilities
+(a)
+(i)
+Borrowings
+(ii) Trade payables
+(iii) Other financial liabilities
+(b) Other current liabilities
+(c)
+Provisions
+Total current liabilities
+(b)
+404,305.3
+17,720.9
+4,620.5
+29
+51,096.6
+40,159.1
+30
+1,328.3
+1,471.2
+198,643.2
+178,870.2
+223,180.8
+209,797.1
+643,028.0
+614,102.4
+The accompanying notes are an integral part of the consolidated financial statements
+As per our report of even date
+5,382.1
+22252
+28
+13,377.2
+14,360.8
+316.5
+4,044.6
+1,048.0
+12,111.1
+2,189.6
+3,147.9
+266.0
+24,537.6
+259.1
+30,926.9
+25
+79,797.0
+66,549.2
+26
+47,662.0
+43,953.9
+27
+22,116.3
+6,452.2
+(ii) Other financial liabilities
+(i)
+68,328.1
+(i)
+Investments
+12
+40,906.2
+2,308.8
+(ii) Trade receivables
+13
+78,152.8
+72,026.1
+(iii) Cash and cash equivalents
+14
+86,628.0
+(iv) Bank balances other than (iii) above
+15
+68,806.9
+20,040.1
+11
+326,669.0
+21,937.8
+24,928.2
+9
+31,896.6
+31,250.1
+(a)
+(b)
+(k) Other non-current assets
+Total non-current assets
+(2) Current assets
+Inventories
+Financial assets
+10
+5,660.1
+6,861.8
+284,565.9
+Borrowings
+64,780.4
+16
+ANNUAL REPORT 2017-18
+Consolidated Balance Sheet
+as at March 31, 2018
+Particulars
+EQUITY AND LIABILITIES
+Equity
+(a) Equity share capital
+(b) Other equity
+Equity attributable to the equity shareholders of the Company
+Non-controlling interests
+Total equity
+Liabilities
+(1) Non-current liabilities
+Financial liabilities
+(a)
+134
+(v) Loans
+329,470.6
+65.9
+329,536.5
+614,102.4
+316,359.0
+914.3
+10,190.8
+(vi) Other financial assets
+17
+4,795.5
+2,258.5
+(c) Other current assets
+18
+23,489.5
+22,949.9
+316,359.0
+Assets classified as held for sale
+66
+Total current assets
+TOTAL ASSETS
+643,028.0
+ICAI Firm Registration No. : 324982E/E300003
+ANNUAL REPORT 2017-18
+Plant and equipment given under
+Basis of consolidation
+a.
+The Group has consistently applied the following accounting
+policies to all periods presented in these consolidated financial
+statements.
+• Level 3 inputs are unobservable inputs for the asset or
+liability.
+• Level 2 inputs are inputs, other than quoted prices included
+within Level 1, that are observable for the asset or liability,
+either directly or indirectly; and
+• Level 1 inputs are quoted prices (unadjusted) in active
+markets for identical assets or liabilities that the entity can
+access at the measurement date;
+In addition, for financial reporting purposes, fair value
+measurements are categorised into Level 1, 2, or 3 based on
+the degree to which the inputs to the fair value measurements
+are observable and the significance of the inputs to the fair
+value measurement in its entirety, which are described as
+follows:
+measurement and/or disclosure purposes in these consolidated
+financial statements is determined on such a basis, except for
+share-based payment transactions that are within the scope
+of Ind AS 102, leasing transactions that are within the scope
+of Ind AS 17, and measurements that have some similarities to
+fair value but are not fair value, such as net realisable value in
+Ind AS 2 or value in use in Ind AS 36.
+Fair value is the price that would be received to sell an asset
+or paid to transfer a liability in an orderly transaction between
+market participants at the measurement date, regardless of
+whether that price is directly observable or estimated using
+another valuation technique. In estimating the fair value
+of an asset or a liability, the Group takes into account the
+characteristics of the asset or liability if market participants
+would take those characteristics into account when pricing
+the asset or liability at the measurement date. Fair value for
+The consolidated financial statements are presented in * and all
+values are rounded to the nearest Million (*000,000) upto one
+decimal, except when otherwise indicated.
+Historical cost is generally based on the fair value of the
+consideration given in exchange for goods and services.
+-
+The consolidated financial statements have been prepared on
+the historical cost basis, except for: (i) financial instruments
+that are measured at fair values at the end of each reporting
+period; (ii) Non-current assets classified as held for sale which
+are measured at the lower of their carrying amount and fair
+value less costs to sell; (iii) derivative financial instrument and
+(iv) defined benefit plans – plan assets that are measured at fair
+values at the end of each reporting period, as explained in the
+accounting policies below:
+2.2 Basis of preparation and presentation
+The Group has prepared its consolidated financial statements
+for the year ended March 31, 2018 in accordance with Indian
+Accounting Standards (Ind AS) notified under the Companies
+(Indian Accounting Standards) Rules, 2015 (as amended)
+together with the comparative period data as at and for the
+year ended March 31, 2017.
+2.1 Statement of compliance
+SIGNIFICANT ACCOUNTING POLICIES
+C. S. MURALIDHARAN
+Chief Financial Officer
+SUNIL R. AJMERA
+Company Secretary
+SUDHIR V. VALIA
+Wholetime Director
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 25, 2018
+141
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+The consolidated financial statements comprise the
+financial statements of the Parent Company, and its
+subsidiaries as disclosed in Note 39. Control exists when
+the parent has power over the entity, is exposed, or has
+rights, to variable returns from its involvement with the
+entity and has the ability to affect those returns by using
+its power over the entity. Power is demonstrated through
+existing rights that give the ability to direct relevant
+activities, those which significantly affect the entity's
+returns. Subsidiaries are consolidated from the date
+control commences until the date control ceases.
+PHARMA
+for the year ended March 31, 2018
+1.
+2.
+GENERAL INFORMATION
+Sun Pharmaceutical Industries Limited ("the Parent Company")
+is a public limited company incorporated and domiciled in
+India, having it's registered office at Vadodara, Gujarat, India
+and has its listing on the Bombay Stock Exchange Limited and
+National Stock Exchange of India Limited. The Company is in
+the business of manufacturing, developing and marketing a
+wide range of branded and generic formulations and Active
+Pharmaceutical Ingredients (APIs). The Parent Company and
+its subsidiaries (hereinafter referred to as "the Company" or
+"the Group") have manufacturing locations spread across the
+world with trading and other incidental and related activities
+extending to the global markets.
+The consolidated financial statement were authorised for issue
+in accordance with a resolution of the directors on May 25,
+2018.
+Notes to the Consolidated Financial Statements
+Profit or loss and each component of other
+comprehensive income are attributed to the owners of
+the Company and to the non-controlling interests. Total
+comprehensive income of subsidiaries is attributed to
+the owners of the Company and to the non-controlling
+interests even if this results in the non-controlling
+interests having a deficit balance.
+The financial statements of the Group companies are
+consolidated on a line-by-line basis and intra-group
+balances, transactions including unrealised gain /
+142
+A 'debt instrument' is measured at the amortised cost if
+both the following conditions are met:
+Debt instruments at amortised cost
+Equity instruments measured at fair value through
+other comprehensive income (FVTOCI)
+• Debt instruments and equity instruments at fair value
+through profit or loss (FVTPL)
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+• Debt instruments at amortised cost
+a)
+For purposes of subsequent measurement, financial
+assets are classified in four categories:
+All financial assets are recognised initially at fair value
+plus, in the case of financial assets not recorded at fair
+value through profit or loss, transaction costs that are
+attributable to the acquisition of the financial asset.
+Purchases or sales of financial assets that require delivery
+of assets within a time frame established by regulation or
+convention in the market place (regular way trades) are
+recognised on the date the group commits to purchase or
+sale the financial assets.
+Initial recognition and measurement
+Financial assets
+A financial instrument is any contract that gives rise to
+a financial asset of one entity and a financial liability or
+equity instrument of another entity.
+Financial instruments
+j.
+Subsequent measurement
+DILIP S. SHANGHVI
+Managing Director
+b)
+Contractual terms of the asset give rise on specified
+dates to cash flows that are solely payments of
+principal and interest (SPPI) on the principal amount
+outstanding.
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+loss from such transactions and cash flows relating
+to transactions between members of the Group
+are eliminated upon consolidation. These financial
+statements are prepared by applying uniform accounting
+policies in use at the Group.
+Changes in the Group's ownership interests in existing
+subsidiaries
+The asset is held within a business model whose
+objective is to hold assets for collecting contractual
+cash flows, and
+Changes in the Group's ownership interests in
+subsidiaries that do not result in the Group losing
+control over the subsidiaries are accounted for as equity
+transactions. The carrying amounts of the Group's
+interests and the non-controlling interests are adjusted
+to reflect the changes in their relative interests in the
+subsidiaries. Any difference between the amount by
+which the non-controlling interests are adjusted and
+the fair value of the consideration paid or received is
+recognised directly in equity and attributed to owners of
+the Company.
+Investments in Associates and Joint Ventures
+Associates are those entities over which the Group has
+significant influence. Significant influence is the power to
+participate in the financial and operating policy decisions of
+the entities but is not control or joint control of those policies.
+A joint venture is a joint arrangement whereby the
+parties that have joint control of the arrangement have
+rights to the net assets of the joint arrangement. Joint
+control is the contractually agreed sharing of control of
+an arrangement, which exists only when decisions about
+the relevant activities require unanimous consent of the
+parties sharing control.
+b.
+The results and assets and liabilities of associates or joint
+ventures are incorporated in these consolidated financial
+statements using the equity method of accounting,
+except when the investment, or a portion thereof, is
+classified as held for sale, in which case it is accounted for
+in accordance with Ind AS 105. Under the equity method,
+an investment in an associate or a joint venture is initially
+recognised in the consolidated balance sheet at cost and
+adjusted thereafter to recognise the Group's share of the
+profit or loss and other comprehensive income of the
+associate or joint venture. Distributions received from an
+associate or a joint venture reduce the carrying amount
+of the investment. The carrying value of the Group's
+investment includes goodwill identified on acquisition,
+net of any accumulated impairment losses. When the
+Group's share of losses of an associate or a joint venture
+exceeds its interest in that associate or joint venture, the
+carrying amount of that interest (including any long-term
+investments) is reduced to zero and the recognition of
+further losses is discontinued except to the extent that
+the Group has obligations or has made payments on
+behalf of the associate or joint venture.
+An investment in an associate or a joint venture is
+accounted for using the equity method from the date
+on which the investee becomes an associate or a joint
+venture and discontinues from the date when the
+investment ceases to be an associate or a joint venture,
+or when the investment is classified as held for sale.
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost
+is calculated by taking into account any discount or
+premium on acquisition and fees or costs that are an
+integral part of the EIR. The EIR amortisation is included
+in Other Income in the profit or loss. The losses arising
+from impairment are recognised in the profit or loss.
+When the Group loses control of a subsidiary, a gain or
+loss is recognised in profit or loss and is calculated as
+the difference between (i) the aggregate of the fair value
+of the consideration received and the fair value of any
+retained interest and (ii) the previous carrying amount
+of the assets (including goodwill) and liabilities of the
+subsidiary and any non-controlling interests. All amounts
+previously recognised in other comprehensive income
+in relation to that subsidiary are accounted for as if the
+Group had directly disposed off the related assets or
+liabilities of the subsidiary (i.e. reclassified to profit or loss
+or transferred to another category of equity as specified/
+permitted by applicable Ind AS). The fair value of any
+investment retained in the former subsidiary at the date
+when control is lost is regarded as the fair value on initial
+recognition for subsequent accounting under Ind AS 109,
+or, when applicable, the cost on initial recognition of an
+investment in an associate or a joint venture.
+Non-current assets (and disposal groups) classified as
+held for sale are measured at the lower of their carrying
+amount and fair value less costs to sell. Non-current
+assets are not depreciated or amortised.
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+103,852.7
+As at
+Change in financial liability/ asset arising from financing activities
+Less:- cash credit facilities included under loans repayable on demand in note 25
+Cash and cash equivalents in cash flow statement
+Cash and cash equivalents (Refer note 14)
+Cash on hand
+Cheques, drafts on hand
+In deposit accounts with original maturity less than 3 months
+In current accounts
+Balances with banks
+Cash and cash equivalents comprises of
+Particulars
+Notes:
+86,423.6
+79,064.5
+354.5
+1,472.8
+1,197.3
+9.1
+24.8
+(4,765.2)
+(3,338.3)
+(7,981.4)
+(2,399.2)
+March 31, 2018
+(1,624.0)
+(15,392.6)
+(22,853.9)
+(10,029.2)
+5,752.2
+86,423.6
+80,316.9
+(490.0)
+* In Million
+As at
+March 31, 2017
+55,137.3
+24,099.3
+49,192.3
+35,576.1
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Mumbai, May 25, 2018
+In Million
+Chartered Accountants
+Year ended March 31, 2018
+Borrowings
+5,876.2
+Derivatives
+1,210.0
+(518.0)
+180.5
+(32.1)
+(521.7)
+94.2
+98,317.7
+754.1
+For S RBC & CO LLP
+The accompanying notes are an integral part of the consolidated financial statements
+10.6
+6.5
+1,813.9
+45.7
+86,628.0
+79,253.7
+189.2
+79,064.5
+As per our report of even date
+204.4
+86,423.6
+Balance as on April 01, 2017
+Changes from financing cash flows
+The effect of changes in foreign exchange rates
+Other changes
+Changes in fair value
+Balance as on March 31, 2018
+Particulars
+After the disposal takes place, the Group accounts for
+any retained interest in the associate or joint venture
+in accordance with Ind AS 109 unless the retained
+interest continues to be an associate or a joint venture,
+in which case the Group uses the equity method (see the
+accounting policy regarding investments in associates or
+joint ventures above).
+Any retained portion of an investment in an associate or a
+joint venture that has not been classified as held for sale
+continues to be accounted for using the equity method.
+The Group discontinues the use of the equity method
+at the time of disposal when the disposal results in the
+Group losing significant influence over the associate or
+joint venture.
+When the Group is committed to a sale plan involving
+disposal of an investment, or a portion of an investment,
+in an associate or joint venture, the investment or the
+portion of the investment that will be disposed off is
+classified as held for sale when the criteria described
+above are met, and the Group discontinues the use of the
+equity method in relation to the portion that is classified
+as held for sale.
+Foreign currency
+Foreign currency transactions
+In preparing the financial statements of each individual
+Group entity, transactions in currencies other than
+the entity's functional currency (foreign currencies)
+are translated at exchange rates at the dates of the
+transactions. Monetary assets and liabilities denominated
+in foreign currencies at the reporting date are translated
+into the functional currency at the exchange rate at that
+date. Exchange differences arising on the settlement of
+monetary items or on translating monetary items at rates
+different from those at which they were translated on
+initial recognition during the period or in previous period
+are recognised in profit or loss in the period in which they
+arise except for:
+⚫ exchange differences on foreign currency borrowings
+relating to assets under construction for future
+productive use, which are included in the cost of those
+assets when they are regarded as an adjustment to
+interest costs on those foreign currency borrowings
+(see note 2.2.r).
+• exchange differences on transactions entered into in
+order to hedge certain foreign currency risks (see note
+2.2.j below for hedging accounting policies).
+• exchange differences on monetary items receivable
+from or payable to a foreign operation for which
+settlement is neither planned nor likely to occur
+(therefore forming part of the net investment in
+the foreign operation) are recognised in other
+comprehensive income / (loss) and presented within
+equity as a part of Foreign Currency Translation
+Reserve. On disposal of the foreign operation, the
+relevant amount in the Foreign Currency Translation
+Reserve is reclassified to profit or loss.
+Non-monetary items that are measured in terms of
+historical cost in foreign currency are measured using the
+exchange rates at the date of initial transaction.
+Foreign operations
+For the purposes of presenting these consolidated
+financial statements, the assets and liabilities of Group's
+foreign operations, are translated to the Indian Rupees
+at exchange rates at the end of each reporting period.
+The income and expenses of such foreign operations are
+translated at the average exchange rates for the period.
+e.
+f.
+Resulting foreign currency differences are recognised
+in other comprehensive income / (loss) and presented
+within equity as part of Foreign Currency Translation
+Reserve (and attributed to non-controlling interests as
+appropriate). When a foreign operation is disposed off,
+the relevant amount in the Foreign Currency Translation
+Reserve is reclassified to profit or loss.
+In addition, in relation to a partial disposal of a subsidiary
+that includes a foreign operation that does not result
+in the Group losing control over the subsidiary, the
+proportionate share of accumulated exchange differences
+are re-attributed to non-controlling interests and are not
+recognised in profit or loss. For all other partial disposals
+(i.e. partial disposals of associates or joint arrangements
+that do not result in the Group losing significant
+influence or joint control), the proportionate share of the
+accumulated exchange differences is reclassified to profit
+or loss.
+Goodwill and fair value adjustments to identifiable assets
+acquired and liabilities assumed through acquisition of
+a foreign operation are treated as assets and liabilities
+of the foreign operation and translated at the rate of
+exchange prevailing at the end of each reporting period.
+Exchange differences arising are recognised in other
+comprehensive income.
+Segment reporting
+Operating segments are reported in a manner consistent
+with the internal reporting provided to the chief
+operating decision maker. The chief operating decision
+maker of the Company is responsible for allocating
+resources and assessing performance of the operating
+segments.
+Property, plant and equipment
+Asset Category
+The estimated useful lives are as follows:
+Depreciation is recognised on the cost of assets (other
+than freehold land and Capital work-in-progress) less
+their residual values on straight-line method over their
+useful lives. Leasehold improvements are depreciated
+over period of the lease agreement or the useful life,
+whichever is shorter. Depreciation methods, useful
+lives and residual values are reviewed at the end of
+each reporting period, with the effect of any changes in
+estimate accounted for on a prospective basis.
+Items of property, plant and equipment acquired through
+exchange of non-monetary assets are measured at fair
+value, unless the exchange transaction lacks commercial
+substance or the fair value of either the asset received or
+asset given up is not reliably measurable, in which case
+the acquired asset is measured at the carrying amount of
+the asset given up.
+An item of property, plant and equipment is derecognised
+upon disposal or when no future economic benefits are
+expected to arise from the continued use of the asset.
+Any gain or loss arising on the disposal or retirement of
+an item of property, plant and equipment is determined
+as the difference between the sales proceeds and the
+carrying amount of property, plant and equipment and is
+recognised in profit or loss.
+other assets, commences when the assets are ready for
+their intended use. When parts of an item of property,
+plant and equipment have different useful lives, they are
+accounted for as separate items (major components) of
+property, plant and equipment.
+assets or liabilities are recognised, to reflect new
+information obtained about facts and circumstances that
+existed at the acquisition date that, if known, would have
+affected the amounts recognised at that date.
+146
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+145
+Assets in the course of construction for production,
+supply or administrative purposes are carried at cost, less
+any recognised impairment loss. Cost includes purchase
+price, borrowing costs if capitalisation criteria are met
+and directly attributable cost of bringing the asset to
+its working condition for the intended use. Subsequent
+expenditures are capitalised only when they increase
+the future economic benefits embodied in the specific
+asset to which they relate. Such assets are classified
+to the appropriate categories of property, plant and
+equipment when completed and ready for intended
+use. Depreciation of these assets, on the same basis as
+Items of property, plant and equipment are stated in
+consolidated balance sheet at cost less accumulated
+depreciation and accumulated impairment losses, if any.
+Freehold land is not depreciated.
+for the year ended March 31, 2018
+d.
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+Expected to be realised within twelve months after the
+reporting period, or
+•
+• Held primarily for the purpose of trading
+Expected to be realised or intended to be sold or
+consumed in normal operating cycle
+•
+C.
+• Cash or cash equivalent unless restricted from being
+exchanged or used to settle a liability for at least twelve
+months after the reporting period
+144
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+143
+The Group presents assets and liabilities in the balance
+sheet based on current / non-current classification. An
+asset is treated as current when it is:
+Current vs. Non-current
+for the year ended March 31, 2018
+Leasehold land
+All other assets are classified as non-current.
+• It is expected to be settled in normal operating cycle
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+If the initial accounting for a business combination is
+incomplete by the end of the reporting period in which
+the combination occurs, the Group reports provisional
+amounts for the items for which the accounting is
+incomplete. Those provisional amounts are adjusted
+during the measurement period (see above), or additional
+If the business combination is achieved in stages, any
+previously held equity interest is re-measured at its
+acquisition date fair value and any resulting gain or loss is
+recognised in profit or loss or OCI, as appropriate.
+A contingent liability of the acquiree is assumed in a
+business combination only if such a liability represents a
+present obligation and arises from a past event, and its
+fair value can be measured reliably. On an acquisition-
+by-acquisition basis, the Group recognises any non-
+controlling interest in the acquiree either at fair value or
+at the non-controlling interest's proportionate share of
+the acquiree's identifiable net assets. Transaction costs
+that the Group incurs in connection with a business
+combination, such as finder's fees, legal fees, due
+diligence fees and other professional and consulting fees,
+are expensed as incurred.
+assumed. When the fair value of the net identifiable
+assets acquired and liabilities assumed exceeds the
+consideration transferred, a bargain purchase gain is
+recognised immediately in the OCI and accumulates the
+same in equity as Capital Reserve where there exists
+clear evidence of the underlying reasons for classifying
+the business combination as a bargain purchase else the
+gain is directly recognised in equity as Capital Reserve.
+Consideration transferred includes the fair values of the
+assets transferred, liabilities incurred by the Group to
+the previous owners of the acquiree, and equity interests
+issued by the Group. Consideration transferred also
+includes the fair value of any contingent consideration.
+Changes in the fair value of the contingent consideration
+that qualify as measurement period adjustments are
+adjusted retrospectively, with corresponding adjustments
+against goodwill or capital reserve, as the case maybe.
+The subsequent accounting for changes in the fair
+value of the contingent consideration that do not
+qualify as measurement period adjustments depends
+on how the contingent consideration is classified.
+Contingent consideration that is classified as equity is
+not remeasured at subsequent reporting dates and its
+subsequent settlement is accounted for within equity.
+Contingent consideration that is classified as an asset
+or a liability is remeasured at fair value at subsequent
+reporting dates with the corresponding gain or loss being
+recognised in profit or loss. Consideration transferred
+does not include amounts related to settlement of pre-
+existing relationships.
+A liability is current when:
+The Group uses the acquisition method of accounting
+to account for business combinations that occurred on
+or after April 01, 2015. The acquisition date is generally
+the date on which control is transferred to the acquirer.
+Judgment is applied in determining the acquisition date
+and determining whether control is transferred from
+one party to another. Control exists when the Group
+is exposed to, or has rights to, variable returns from its
+involvement with the entity and has the ability to affect
+those returns through power over the entity. In assessing
+control, potential voting rights are considered only if the
+rights are substantive. The Group measures goodwill
+as of the applicable acquisition date at the fair value of
+the consideration transferred, including the recognised
+amount of any non-controlling interest in the acquiree
+and the fair value of the acquirer's previously held equity
+interest in the acquiree (if any), less the net recognised
+amount of the identifiable assets acquired and liabilities
+The operating cycle is the time between the acquisition
+of assets for processing and their realisation in cash
+and cash equivalents. The Group has identified twelve
+months as its operating cycle.
+Deferred tax assets and liabilities are classified as non-
+current assets and liabilities.
+The Group classifies all other liabilities as non-current.
+• There is no unconditional right to defer the settlement
+of the liability for at least twelve months after the
+reporting period
+• It is due to be settled within twelve months after the
+reporting period, or
+⚫It is held primarily for the purpose of trading
+Business combinations
+No. of Years
+50-196
+Leasehold improvements
+3-10
+Impairment of non-financial assets other than
+goodwill
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits are
+expected from their use. Gain or loss arising on such
+de-recognition is recognised in profit or loss, and are
+measured as the difference between the net disposal
+proceeds, if any, and the carrying amount of respective
+intangible assets as on the date of de-recognition.
+De-recognition of intangible assets
+The estimated useful life and amortisation method are
+reviewed at the end of each reporting period, with the
+effect of any changes in estimate being accounted for on
+a prospective basis.
+h.
+The estimated useful life and the amortisation method for
+intangible assets with a finite useful life are reviewed at the
+end of each reporting period, with the effect of any changes
+in estimate being accounted for on a prospective basis.
+The carrying amounts of the Group's non-financial
+assets are reviewed at each reporting date to determine
+whether there is any indication of impairment. If any such
+indication exists, then the asset's recoverable amount
+The estimated useful lives for Product related intangibles
+and Other intangibles ranges from 5 to 20 years.
+Subsequent expenditures are capitalised only when they
+increase the future economic benefits embodied in the
+specific asset to which they relate. All other expenditures,
+including expenditures on internally generated goodwill
+and brands, are recognised in the statement of profit and
+loss as incurred.
+The consideration for acquisition of intangible asset
+which is based on reaching specific milestone that are
+dependent on the Group's future activity is recognised
+only when the activity requiring the payment is
+performed.
+Acquired research and development intangible assets
+which are under development, are recognised as In-
+Process Research and Development assets ("IPR&D").
+IPR&D assets are not amortised, but evaluated for
+potential impairment on an annual basis or when there
+are indications that the carrying value may not be
+recoverable. Any impairment charge on such IPR&D
+assets is recognised in profit or loss. Intangible assets
+relating to products under development, other intangible
+assets not available for use and intangible assets having
+indefinite useful life are tested for impairment annually,
+or more frequently when there is an indication that the
+assets may be impaired. All other intangible assets are
+tested for impairment when there are indications that the
+carrying value may not be recoverable.
+Payments to third parties that generally take the form
+of up-front payments and milestones for in-licensed
+products, compounds and intellectual property are
+capitalised since the probability of expected future
+economic benefits criterion is always considered to be
+satisfied for separately acquired intangible assets.
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable
+to preparing the asset for its intended use. Other
+development expenditure is recognised in profit or loss as
+incurred.
+for the year ended March 31, 2018
+Amortisation is recognised on a straight-line basis over
+the estimated useful lives of intangible assets. Intangible
+assets that are not available for use are amortised from
+the date they are available for use.
+Notes to the Consolidated Financial Statements
+is estimated in order to determine the extent of the
+impairment loss, if any.
+An impairment loss is recognised in the profit or loss
+if the estimated recoverable amount of an asset or its
+cash generating unit is lower than its carrying amount.
+Impairment losses recognised in respect of cash
+generating units are allocated first to reduce the carrying
+amount of any goodwill allocated to the units and then to
+reduce the carrying amount of the other assets in the unit
+on a pro-rata basis.
+When the Group is committed to a sale plan involving
+loss of control of a subsidiary, all of the assets and
+liabilities of that subsidiary are classified as held for sale
+when the criteria described above are met, regardless of
+whether the Group will retain a non-controlling interest
+in its former subsidiary after the sale.
+Non-current assets and disposal groups are classified as
+held for sale if their carrying amount will be recovered
+principally through a sale transaction rather than
+through continuing use. This condition is regarded as
+met only when the asset (or disposal group) is available
+for immediate sale in its present condition subject
+only to terms that are usual and customary for sales
+of such asset (or disposal group) and its sale is highly
+probable. Management must be committed to the sale,
+which should be expected to qualify for recognition
+as a completed sale within one year from the date of
+classification.
+Non-current assets held for sale
+carrying amount does not exceed the carrying amount
+that would have been determined, net of depreciation or
+amortisation, if no impairment loss had been recognised.
+i.
+148
+The recoverable amount of an asset or cash generating
+unit (as defined below) is the greater of its value in use
+and its fair value less costs to sell. In assessing value in
+use, the estimated future cash flows are discounted to
+their present value using a pre-tax discount rate that
+reflects current market assessments of the time value
+of money and the risks specific to the asset or the
+cash generating unit for which the estimates of future
+cash flows have not been adjusted. For the purpose of
+impairment testing, assets are grouped together into
+the smallest group of assets that generates cash inflows
+from continuing use that are largely independent of the
+cash inflows of other assets or groups of assets (the "cash
+generating unit").
+for the year ended March 31, 2018
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+147
+loss is reversed only to the extent that the asset's
+to determine the recoverable amount. An impairment
+In respect of assets other than goodwill, impairment
+losses recognised in prior periods are assessed at each
+reporting date for any indications that the loss has
+decreased or no longer exists. An impairment loss is
+reversed if there has been a change in the estimates used
+Notes to the Consolidated Financial Statements
+Year ended
+March 31, 2017
+CONSOLIDATED FINANCIAL STATEMENTS
+⚫ the Group intends to and has sufficient resources/ability
+to complete development and to use or sell the asset.
+Vehicles
+Furniture and fixtures
+Office equipment
+operating lease
+2-15
+139
+3-15
+3-25
+30
+Buildings given under operating lease
+10-40
+Buildings taken under finance lease
+5-100
+Buildings
+Plant and equipment
+ANNUAL REPORT 2017-18
+2-21
+Software for internal use, which is primarily acquired
+from third-party vendors and which is an integral part
+of a tangible asset, including consultancy charges for
+implementing the software, is capitalised as part of the
+related tangible asset. Subsequent costs associated with
+maintaining such software are recognised as expense as
+incurred. The capitalised costs are amortised over the
+⚫ future economic benefits are probable; and
+⚫ the product or process is technically and commercially
+feasible;
+⚫ development costs can be measured reliably;
+Expenditure on research activities undertaken with the
+prospect of gaining new scientific or technical knowledge
+and understanding are recognised as an expense when
+incurred. Development activities involve a plan or design
+for the production of new or substantially improved
+products and processes. An internally-generated
+intangible asset arising from development is recognised if
+and only if all of the following have been demonstrated:
+Research and development
+Other intangible assets that are acquired by the Group
+and that have finite useful lives are measured at cost less
+accumulated amortisation and accumulated impairment
+losses, if any. Subsequent expenditures are capitalised
+only when they increase the future economic benefits
+embodied in the specific asset to which they relate.
+2-17
+Other intangible assets
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-controlling
+interest in the acquiree, over the fair value of the Group's
+share of identifiable net assets acquired. Goodwill is
+measured at cost less accumulated impairment losses.
+A cash-generating unit to which goodwill has been
+allocated is tested for impairment annually, or more
+frequently when there is an indication that the unit
+may be impaired. The goodwill acquired in a business
+combination is, for the purpose of impairment testing,
+allocated to cash-generating units that are expected
+to benefit from the synergies of the combination. Any
+impairment loss for goodwill is recognised directly in
+profit or loss. An impairment loss recognised for goodwill
+is not reversed in subsequent periods.
+Goodwill
+Goodwill and other intangible assets
+remaining useful life of the tangible fixed asset.
+lower of the estimated useful life of the software and the
+g.
+On disposal of a cash-generating unit to which goodwill
+is allocated, the goodwill associated with the disposed
+cash-generating unit is included in the carrying amount
+of the cash-generating unit when determining the gain or
+loss on disposal.
+When a Group entity transacts with an associate or a
+joint venture of the Group, profits and losses resulting
+from the transactions with the associate or joint venture
+are recognised in the Group's consolidated financial
+statements only to the extent of interests in the associate
+or joint venture that are not related to the Group.
+* in Million
+Year ended
+(1.0)
+(1,624.0)
+(8,130.2)
+(152.8)
+(7,977.4)
+(1,624.0)
+(1,624.0)
+(7,977.4)
+31,316.0
+4,945.7
+26,370.3
+(75.7)
+3,104.4
+(90.5) 1,308.9
+22,123.2
+1,607.7
+(42.7)
+1,650.4
+Attributable
+to owners
+of Parent
+Company
+Non-
+controlling
+interests
+in Million
+TOTAL
+(1.0)
+21,615.5
+(90.5) 1,308.9
+3,104.4
+21,615.5
+3,104.4
+4,468.0
+520.4
+26,083.5
+3,624.8
+(75.7)
+* 507.7
+833.4
+(2,168.1)
+2.5
+DILIP S. SHANGHVI
+Managing Director
+C. S. MURALIDHARAN
+Chief Financial Officer
+SUNIL R. AJMERA
+Company Secretary
+SUDHIR V. VALIA
+Wholetime Director
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 25, 2018
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Consolidated Cash Flow Statement
+for the year ended March 31, 2018
+Particulars
+A. CASH FLOW FROM OPERATING ACTIVITIES
+Profit before tax
+Adjustments for:
+PHARMA
+Foreign Effective
+currency portion of
+translation cash flow
+reserve
+hedges
+419,847.2
+381,005.6
+(2.5)
+9.1
+9.1
+(2,168.1)
+(4,586.4)
+(6,754.5)
+38,841.6
+726.5
+43.8
+7.5
+3.6 35,578.0 317,641.5
+(93.9) 1,648.6
+10,120.1
+(29.5)
+726.5
+Depreciation and amortisation expense
+Debt
+Equity
+instrument instrument
+through OCI through OCI
+Other comprehensive income (OCI)
+Issue of equity shares@
+employees
+based payments to
+Recognition of share-
+Dividend distribution tax
+money
+pending
+allotment
+Share Capital
+Securities
+application reserve premium
+reserve
+redemption
+Capital
+reserve
+account
+reserve
+reserve
+redemption
+Reserves and surplus
+Amalgamation
+Debenture Share option
+outstanding
+capital
+Consolidated Statement of Changes in Equity
+for the year ended March 31, 2018
+Particulars
+Profit for the year
+Exchange difference
+arising on translation of
+foreign operations /net
+0.0
+investment in foreign
+Other comprehensive
+income for the year, net
+of income tax
+Total comprehensive
+income for the year
+Payment of dividend
+Equity
+share
+operations
+(0.0)
+9.1
+Transfer to debenture
+507.5 11,929.1
+1,250.0
+* Represents re-measurements of the defined benefit plans
+# (March 31, 2017: 7,177)
+@ (March 31, 2018: 62,365)
+The accompanying notes are an integral part of the consolidated financial statements
+-
+As per our report of even date
+Chartered Accountants
+ICAI Firm Registration No.: 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Mumbai, May 25, 2018
+For S RBC & CO LLP
+Legal General
+Retained
+reserve
+reserve earnings
+(25.4)
+(1.0)
+redemption reserve
+Buy-back of equity
+shares by overseas
+subsidiaries Company
+Additional non-
+controlling interest
+arising on the
+25.4
+acquisition of Zenotech
+Transfer from surplus in
+consolidated statement
+of profit and loss as
+per the local law of an
+overseas subsidiary
+Transfer on exercise of
+share options
+Balance as at March
+31, 2018
+2,399.3
+(833.4)
+(Refer note 76)
+Impairment of property, plant and equipment, goodwill and other intangible assets
+Loss on sale / write off of property, plant and equipment and other intangible assets, net
+Finance costs
+Interest income
+371.6
+Dividend received
+10.6
+Receipt of rental on assets given under finance lease
+3,365.2
+5,103.7
+(1,671.8)
+(855.0)
+Net cash outflow on acquisition of subsidiaries / business units (Refer note 76)
+Interest received
+55,224.3
+65,987.1
+Fixed deposits / margin money matured
+(67,586.6)
+(16,812.3)
+Fixed deposits / margin money placed
+Bank balances not considered as cash and cash equivalents
+391,943.9
+Payments for purchase of property, plant and equipment (including capital work-in-progress,
+other intangible assets and intangible assets under development)
+(19,607.8)
+(36,928.6)
+Proceeds from disposal of property, plant and equipment and other intangible assets
+Loans/inter corporate deposits
+664.9
+1,024.7
+Net cash used in investing activities (B)
+Given / placed
+Purchase of investments [including associates and joint venture ₹ 324.7 Million
+(25,847.2)
+13,230.0
+(405,866.8)
+(6,504.6)
+6,796.8
+(388,310.4)
+(March 31, 2017: ₹ 1,543.6 Million)]
+Proceeds from sale of investments
+349,923.7
+Received back / matured
+(33,708.1)
+420.5
+(42,216.0)
+C.
+140
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Cash Flow Statement
+for the year ended March 31, 2018
+Particulars
+(604.5)
+Proceeds from issue of equity shares on exercise of stock options / share application money
+received
+Dividend paid
+Dividend distribution tax
+Net cash used in financing activities (C)
+Net (decrease) / increase in cash and cash equivalents (A+B+C)
+Cash and cash equivalents at the beginning of the year
+Cash and cash equivalents taken over on acquisition of subsidiaries (Refer note 76)
+Effect of exchange differences on restatement of foreign currency cash and cash
+equivalents
+Cash and cash equivalents at the end of the year
+Finance costs
+CASH FLOW FROM INVESTING ACTIVITIES
+11,625.7
+(34.2)
+CASH FLOW FROM FINANCING ACTIVITIES
+Proceeds from borrowings
+122,061.7
+91,975.6
+Repayment of borrowings
+(127,811.2)
+Net increase / (decrease) in working capital demand loans
+(80,649.9)
+(6,754.5)
+(27,307.8)
+Dividend payment to non-controlling interests
+(152.8)
+(30.4)
+Payment for share buy-back expenses
+Payment for buy-back of equity shares of parent and buy-back of equity shares held by non-
+controlling interests of subsidiaries
+B.
+70,822.1
+39,071.5
+(371.6)
+(420.5)
+(1,236.6)
+(72.2)
+(234.0)
+(479.3)
+(3,711.7)
+7.5
+Provision / write off for doubtful trade receivables / advances
+Sundry balances written back, net
+Expense/ (income) recognised in respect of share based payments to employees
+Impairment in value of investments
+Effect of exchange rate changes
+Operating profit before working capital changes
+1,095.9
+(201.3)
+341.8
+(5,197.6)
+5,175.7
+Dividend income on investments
+Net gain arising on financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net loss on sale of financial assets measured at fair value through other comprehensive income
+Gain on disposal of an associate entity
+Year ended
+March 31, 2018
+* in Million
+Year ended
+March 31, 2017
+3,998.0
+34,789.8
+14,998.4
+12,647.5
+26.7
+203.6
+201.6
+108.8
+90,478.7
+March 31, 2018
+(170.6)
+(1.0)
+(1,163.3)
+(6,464.2)
+3,830.4
+7,354.5
+(217.4)
+(1,530.7)
+(2,934.5)
+3,197.3
+46,488.9
+91,393.3
+Income tax paid (net of refund)
+(7,417.4)
+(20,571.2)
+Net cash generated from operating activities (A)
+2,932.7
+(618.5)
+(7,730.1)
+(40.0)
+32.3
+(725.7)
+253.5
+6.8
+(6,828.6)
+48,612.0
+95,485.4
+(3,449.9)
+Movements in working capital:
+Increase in trade receivables
+Increase in other assets
+Increase in trade payables
+Decrease in other liabilities
+Increase in provisions
+Cash generated from operations
+Increase in inventories
+The difference between the carrying amount of the
+associate or joint venture at the date the equity method
+was discontinued, and the fair value of any retained
+interest and any proceeds from disposing of a part
+interest in the associate or joint venture is included
+in the determination of the gain or loss on disposal of
+the associate or joint venture. In addition, the Group
+accounts for all amounts previously recognised in other
+comprehensive income in relation to that associate or
+joint venture on the same basis as would be required if
+that associate or joint venture had directly disposed off
+the related assets or liabilities.
+m. Cash and cash equivalents
+CONSOLIDATED FINANCIAL STATEMENTS
+For cash-settled share-based payments, a liability is
+recognised for the goods or services acquired, measured
+initially at the fair value of the liability. At the end of
+each reporting period until the liability is settled, and at
+the date of settlement, the fair value of the liability is
+remeasured, with any changes in fair value recognised in
+profit or loss for the year.
+Borrowing costs
+Borrowing costs that are directly attributable to the
+construction or production of a qualifying asset are
+capitalised as part of the cost of that asset. All other
+borrowing costs are expensed in the period in which they
+occur. Borrowing costs consist of interest and other costs
+that an entity incurs in connection with the borrowing of
+funds. Borrowing costs also include exchange differences
+to the extent regarded as an adjustment to the borrowing
+costs. A qualifying asset is one that necessarily takes
+substantial period of time to get ready for its intended use.
+Income tax
+Income tax expense consists of current and deferred tax.
+Income tax expense is recognised in profit or loss except
+to the extent that it relates to items recognised in OCI or
+directly in equity, in which case it is recognised in OCI or
+directly in equity respectively. Current tax is the expected
+tax payable on the taxable profit for the year, using tax
+rates enacted or substantively enacted by the end of
+the reporting period, and any adjustment to tax payable
+in respect of previous years. Current tax assets and tax
+liabilities are offset where the Company has a legally
+enforceable right to offset and intends either to settle on
+a net basis, or to realise the asset and settle the liability
+simultaneously.
+Deferred tax is recognised on temporary differences
+between the carrying amounts of assets and liabilities
+in the consolidated financial statements and the
+corresponding tax bases used in the computation of
+taxable profit. Deferred tax is not recognised for the
+temporary differences that arise on the initial recognition
+of assets or liabilities in a transaction that is not a
+business combination and that affects neither accounting
+nor taxable profits and taxable temporary differences
+arising upon the initial recognition of goodwill.
+Deferred tax is measured at the tax rates that are
+expected to be applied to the temporary differences
+u.
+when they reverse, based on the laws that have been
+enacted or substantively enacted by the end of the
+reporting period. Deferred tax assets and liabilities are
+offset if there is a legally enforceable right to set off
+corresponding current tax assets against current tax
+liabilities and the deferred tax assets and deferred tax
+liabilities relate to income taxes levied by the same tax
+authority on the Company.
+A deferred tax asset is recognised to the extent that it
+is probable that future taxable profits will be available
+against which the temporary difference can be utilised.
+Deferred tax assets are reviewed at each reporting
+date and are reduced to the extent that it is no longer
+probable that the related tax benefit will be realised.
+Withholding tax arising out of payment of dividends to
+shareholders under the Indian income tax regulations is
+not considered as tax expense for the Company and all
+such taxes are recognised in the statement of changes in
+equity as part of the associated dividend payment.
+Minimum Alternate Tax ('MAT') credit is recognised as
+deferred tax asset only when and to the extent there is
+convincing evidence that the Company will pay normal
+income tax during the period for which the MAT credit
+can be carried forward for set-off against the normal tax
+liability. MAT credit recognised as an asset is reviewed at
+each Balance Sheet date and written down to the extent
+the aforesaid convincing evidence no longer exists.
+Earnings per share
+The Parent Company presents basic and diluted earnings
+per share ("EPS") data for its equity shares. Basic EPS
+is calculated by dividing the profit or loss attributable
+to equity shareholders of the Parent Company by the
+weighted average number of equity shares outstanding
+during the period. Diluted EPS is determined by adjusting
+the profit or loss attributable to equity shareholders
+and the weighted average number of equity shares
+outstanding for the effects of all dilutive potential
+ordinary shares, which includes all stock options granted
+to employees.
+The number of equity shares and potentially dilutive
+equity shares are adjusted retrospectively for all periods
+presented for any share splits and bonus shares issues
+including for changes effected prior to the approval of
+the financial statements by the Board of Directors.
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+V. Recent Accounting pronouncements
+Standards issued but not yet effective and not early
+adopted by the Company
+Ind AS 115, Revenue from Contracts with Customers
+In March 2018, the Ministry of Corporate Affairs ("MCA")
+has notified Ind AS 115, Revenue from Contracts with
+Customers, which is effective for accounting periods
+beginning on or after April 01, 2018. This comprehensive
+new standard will supersede existing revenue recognition
+guidance, and requires an entity to recognise revenue
+to depict the transfer of promised goods or services to
+customers in an amount that reflects the consideration
+to which the entity expects to be entitled in exchange
+for those goods or services. The new standard also will
+result in enhanced disclosures about revenue, provide
+guidance for transactions that were not previously
+addressed comprehensively (for example, service revenue
+and contract modifications) and improve guidance for
+multiple-element arrangements.
+t.
+Ind AS 115 is effective for annual reporting periods
+beginning on or after April 01, 2018.
+S.
+for the year ended March 31, 2018
+q.
+r.
+Interest income from a financial asset is recognised when
+it is probable that the economic benefits will flow to
+the Group and the amount of income can be measured
+reliably. Interest income is accrued on a time basis,
+by reference to the principal outstanding and at the
+effective interest rate applicable, which is the rate that
+exactly discounts estimated future cash receipts through
+the expected life of the financial asset to that asset's net
+carrying amount on initial recognition.
+Government grants
+The Group recognises government grants only when
+there is reasonable assurance that the conditions
+attached to them will be complied with, and the grants
+will be received. When the grant relates to an expense
+item, it is recognised as income on a systematic basis
+over the periods that the related costs, for which it is
+intended to compensate, are expensed. When the grant
+relates to an asset, the Company deducts such grant
+amount from the carrying amount of the asset.
+Employee benefits
+Defined benefit plans
+The Company operates a defined benefit gratuity plan
+which requires contribution to be made to a separately
+administered fund.
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method with
+actuarial valuations being carried out at the end of each
+annual reporting period. The present value of the defined
+benefit obligation is determined by discounting the
+estimated future cash outflows by reference to market
+yields at the end of the reporting period on government
+bonds. The currency and term of the government bonds
+shall be consistent with the currency and estimated term
+of the post-employment benefit obligations. The current
+service cost of the defined benefit plan, recognised in
+the profit or loss as employee benefits expense, reflects
+the increase in the defined benefit obligation resulting
+from employee service in the current year, benefit
+changes, curtailments and settlements. Past service
+costs are recognised in profit or loss in the period of
+a plan amendment. The net interest cost is calculated
+by applying the discount rate to the net balance of
+the defined benefit obligation and the fair value of
+plan assets. This cost is included in employee benefit
+expense in profit or loss. Actuarial gains and losses arising
+from experience adjustments and changes in actuarial
+assumptions are charged or credited to OCI in the
+period in which they arise and is reflected immediately in
+retained earnings and is not reclassified to profit or loss.
+Termination benefits
+Termination benefits are recognised as an expense at
+the earlier of the date when the Group can no longer
+withdraw the offer of those benefits and when the
+entity recognises costs for a restructuring that is within
+the scope of Ind AS 37 and involves the payment of
+termination benefits.
+Short-term and other long-term employee benefits
+Accumulated leave, which is expected to be utilised
+within the next 12 months, is treated as short-term
+employee benefit. The Company measures the expected
+cost of such absences as the additional amount that it
+expects to pay as a result of the unused entitlement that
+has accumulated at the reporting date.
+The Group treats accumulated leave expected to be
+carried forward beyond twelve months, as long-term
+employee benefit for measurement purposes. Such
+long-term compensated absences are provided for
+based on the actuarial valuation using the projected unit
+credit method at the year-end. Actuarial gains/losses are
+immediately taken to the statement of profit and loss and
+are not deferred.
+The Group's net obligation in respect of other long-term
+employee benefits is the amount of future benefit that
+employees have earned in return for their service in the
+current and previous periods. That benefit is discounted
+to determine its present value.
+Defined contribution plans
+The Group's contributions to defined contribution plans
+are recognised as an expense as and when the services
+are received from the employees entitling them to the
+contributions. The Group does not have any obligation
+other than the contribution made.
+Share-based payment arrangements
+The grant date fair value of options granted to
+employees is recognised as an employee expense, with a
+corresponding increase in equity, on a straight line basis,
+over the vesting period, based on the Group's estimate
+of equity instruments that will eventually vest. At the end
+of each reporting period, the Group revises its estimate
+of the number of equity instruments expected to vest.
+The impact of the revision of the original estimates,
+if any, is recognised in profit or loss such that the
+cumulative expense reflects the revised estimate, with a
+corresponding adjustment to the equity-settled employee
+benefits reserve.
+155
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Consolidated Financial Statements
+156
+The Group intends to adopt Ind AS 115 effective April
+01, 2018, using the modified retrospective method. The
+Group is evaluating the requirements of the standard and
+its impact on its financials.
+Amendments to Ind AS 7 Statement of Cash Flows:
+The amendments require entities to provide disclosure
+of changes in their liabilities arising from financing
+activities, including both changes arising from cash flows
+and non-cash changes (such as foreign exchange gains or
+losses). The Company has provided the information for
+the current period in Consolidated Cash Flow Statement.
+Since amendment is effect from April 01, 2017, no
+comparative period information is required.
+Other Amendments:
+6.3
+-
+715.1
+721.4
+1,697.3
+54.3
+1.0
+216.6
+1,183.5
+1,535.4
+16,230.6
+(20.8) (4,179.2)
+148,764.5
+1,948.4
+683.4 47,201.1
+(30.6) (1,097.9)
+269.7
+8,522.1
+203.6
+(7.2)
+(5,787.6)
+1.5
+915.3
+16.8
+0.9
+16,847.6
+4,155.5
+123,032.5
+(2,294.8)
+1,300.0
+(43.6)
+6.9
+On March 28, 2018, the MCA, issued certain
+amendments to Ind AS. The amendments relate to the
+following standards:
+• Ind AS 40, Investment Property
+•Ind AS 21, The Effects of Changes in Foreign Exchange
+Rates
+Ind AS 12, Income Taxes
+• Ind AS 28, Investments in Associates and Joint Ventures
+• Ind AS 112, Disclosure of Interests in Other Entities
+The amendments are effective April 01, 2018. The Group
+believes that the aforementioned amendments will not
+materially impact the financial position, performance or
+the cash flows of the Group.
+157
+158
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+for the year ended March 31, 2018
+PHARMA
+for the year ended March 31, 2018
+Furniture Furniture Vehicles
+Vehicles
+Lease
+Office
+equipment
+* in Million
+Total
+452.4
+(18.4)
+(7,746.6)
+133,994.2
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+• Hedges of a net investment in a foreign operation.
+At the inception of a hedge relationship, the Group
+formally designates and documents the hedge
+relationship to which the Group wishes to apply hedge
+accounting and the risk management objective and
+strategy for undertaking the hedge. The documentation
+includes the Group's risk management objective and
+strategy for undertaking hedge, the hedging/economic
+relationship, the hedged item or transaction, the nature
+of the risk being hedged, hedge ratio and how the entity
+will assess the effectiveness of changes in the hedging
+instrument's fair value in offsetting the exposure to
+changes in the hedged item's fair value or cash flows
+attributable to the hedged risk. Such hedges are expected
+to be highly effective in achieving offsetting changes in
+fair value or cash flows and are assessed on an ongoing
+basis to determine that they actually have been highly
+effective throughout the financial reporting periods for
+which they were designated.
+Hedges that meet the strict criteria for hedge accounting
+are accounted for, as described below:
+(i)
+Fair value hedges
+Changes in fair value of the designated portion
+of derivatives that qualify as fair value hedges are
+recognised in profit or loss immediately, together with
+any changes in the fair value of the hedged asset or
+liability that are attributable to the hedged risk.
+(ii) Cash flow hedges
+The effective portion of changes in the fair value of the
+hedging instrument is recognised in OCI in the cash
+flow hedge reserve, while any ineffective portion is
+recognised immediately in profit or loss. The Group uses
+forward currency contracts as hedges of its exposure
+to foreign currency risk in forecast transactions and
+firm commitments. Amounts recognised as OCI are
+transferred to profit or loss when the hedged transaction
+affects profit or loss, such as when a forecast sale occurs.
+When the hedged item is the cost of a non-financial asset
+or non-financial liability, the amounts recognised as OCI
+are transferred to the initial carrying amount of the non-
+financial asset or liability.
+k.
+If the hedging instrument expires or is sold, terminated
+or exercised or if its designation as a hedge is revoked,
+or when the hedge no longer meets the criteria for
+hedge accounting, any cumulative gain or loss previously
+recognised in OCI remains separately in equity until the
+forecast transaction occurs or the foreign currency firm
+commitment is met. When a forecast transaction is no
+longer expected to occur, the gain or loss accumulated in
+equity is recognised immediately in profit or loss.
+(iii) Net Investment Hedge
+The group designates certain foreign currency liability
+as hedge against certain net investment in foreign
+subsidiaries. Hedges of net investments in foreign
+operations are accounted similar to cash flow hedges.
+Any gain or loss on the hedging instrument relating to
+the effective portion of the hedge is recognised in other
+comprehensive income and held in foreign currency
+translation reserve ('FCTR')- a component of equity. The
+ineffective portion of the gain or loss on these hedges
+is immediately recognised in the statement of profit and
+loss. The amounts accumulated in equity are included
+in the statement of profit and loss when the foreign
+operation is disposed or partially disposed.
+Treasury shares
+The Group has created an Employee Benefit Trust (EBT)
+for providing share-based payment to its employees. The
+Group uses EBT as a vehicle for distributing shares to
+employees under the employee remuneration schemes.
+The Group treats EBT as its extension and shares held by
+EBT are treated as treasury shares.
+Own equity instruments that are reacquired (treasury
+shares) are deducted from equity. No gain or loss is
+recognised in profit or loss on the purchase, sale, issue
+or cancellation of the Group's own equity instruments.
+Consideration paid or received shall be recognised
+directly in equity.
+Dividend distribution to equity holders of the Parent
+The Parent Company recognises a liability to make
+dividend distributions to equity holders of the parent
+when the distribution is authorised and the distribution is
+no longer at the discretion of the Parent Company. As per
+the corporate laws in India, a distribution is authorised
+when it is approved by the shareholders. A corresponding
+amount is recognised directly in equity.
+Leases
+A lease that transfers substantially all the risks and
+rewards incidental to ownership to the lessee is classified
+as a finance lease. All other leases are classified as
+operating leases.
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+• Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable to
+a particular risk associated with a recognised asset
+or liability or a highly probable forecast transaction
+or the foreign currency risk in an unrecognised firm
+commitment
+152
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+amounts of financial liabilities that are subsequently
+measured at amortised cost are determined based on the
+effective interest rate (EIR) method. Interest expense that
+is not capitalised as part of costs of an asset is included in
+the 'Finance costs' line item in the profit or loss.
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using the
+EIR method. Amortised cost is calculated by taking into
+account any discount or premium on acquisition and
+fees or costs that are an integral part of the EIR. The EIR
+amortisation is included as finance costs in the profit
+or loss.
+Financial guarantee contracts
+Financial guarantee contracts are those contracts that
+require a payment to be made to reimburse the holder
+for a loss it incurs because the specified debtor fails to
+make a payment when due in accordance with the terms
+of a debt instrument. Financial guarantee contracts are
+recognised initially as a liability at fair value, adjusted
+for transaction costs that are directly attributable to
+the issuance of the guarantee. If not designated as at
+FVTPL, are subsequently measured at the higher of the
+amount of loss allowance determined as per impairment
+requirements of Ind AS 109 and the amount initially
+recognised less cumulative amount of income recognised.
+Derecognition
+A financial liability is derecognised when the obligation
+under the liability is discharged or cancelled or expires.
+When an existing financial liability is replaced by another
+from the same lender on substantially different terms,
+or the terms of an existing liability are substantially
+modified, such an exchange or modification is treated
+as the derecognition of the original liability and the
+recognition of a new liability. The difference between the
+carrying amount of the financial liability derecognised and
+the consideration paid and payable is recognised in profit
+or loss.
+for the year ended March 31, 2018
+Embedded derivatives
+Reclassification of financial assets
+The Group determines classification of financial
+assets and liabilities on initial recognition. After initial
+recognition, no reclassification is made for financial
+assets which are equity instruments and financial
+liabilities. For financial assets which are debt instruments,
+a reclassification is made only if there is a change in the
+business model for managing those assets. Changes
+to the business model are expected to be infrequent.
+The Group's senior management determines change in
+the business model as a result of external or internal
+changes which are significant to the Group's operations.
+Such changes are evident to external parties. A change
+in the business model occurs when the Group either
+begins or ceases to perform an activity that is significant
+to its operations. If the Group reclassifies financial
+assets, it applies the reclassification prospectively from
+the reclassification date which is the first day of the
+immediately next reporting period following the change
+in business model. The Group does not restate any
+previously recognised gains, losses (including impairment
+gains or losses) or interest.
+Derivative financial instruments and hedge
+accounting
+Initial recognition and subsequent measurement
+The Group uses derivative financial instruments, such as
+forward currency contracts, full currency swap, options
+and interest rate swaps to hedge its foreign currency
+risks and interest rate risks respectively. Such derivative
+financial instruments are initially recognised at fair value
+on the date on which a derivative contract is entered
+into and are subsequently re-measured at fair value at
+the end of each reporting period. Derivatives are carried
+as financial assets when the fair value is positive and as
+financial liabilities when the fair value is negative.
+Any gains or losses arising from changes in the fair value
+of derivatives are taken directly to profit or loss, except
+for the effective portion of cash flow hedges, which is
+recognised in OCI and later reclassified to profit or loss
+when the hedge item affects profit or loss or treated
+as basis adjustment if a hedged forecast transaction
+subsequently results in the recognition of a non-financial
+asset or non-financial liability.
+For the purpose of hedge accounting, hedges are
+classified as:
+• Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+151
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Derivatives embedded in non-derivative host contracts
+that are not financial assets within the scope of Ind
+AS 109 are accounted for as separate derivatives and
+recorded at fair value if their economic characteristics
+and risks are not closely related to those of the host
+contracts and the host contracts are not held for trading
+or designated at fair value though profit or loss. These
+embedded derivatives are measured at fair value with
+changes in fair value recognised in profit or loss, unless
+designated as effective hedging instruments.
+49,041.3
+834.7
+Group as a lessee
+Operating lease payments are generally recognised as
+an expense in the profit or loss on a straight-line basis
+over the lease term. Where the rentals are structured
+solely to increase in line with expected general inflation
+to compensate for the lessor's expected inflationary cost
+increases, such increases are recognised in the year in
+which such benefits accrue. Contingent rentals arising
+under operating leases are also recognised as expenses in
+the periods in which they are incurred.
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+(i)
+(ii)
+Possible obligations which will be confirmed only by
+future events not wholly within the control of the
+Company, or
+Present obligations arising from past events where
+it is not probable that an outflow of resources will
+be required to settle the obligation or a reliable
+estimate of the amount of the obligation cannot be
+made.
+Contingent assets are not recognised in the consolidated
+financial statements.
+Revenue
+Revenue from sale of goods is measured at the fair value
+of the consideration received or receivable. Revenue is
+stated exclusive of sales tax, value added tax, goods and
+service tax and net of returns, chargebacks, rebates and
+other similar allowances. Revenue is inclusive of excise
+duty till the period, provision of excise duty was levied on
+sale of goods.
+Sale of goods
+Revenue from sale of goods is recognised when the
+significant risks and rewards of ownership have been
+transferred to the buyer, usually on delivery of goods,
+it is probable that the economic benefit will flow to the
+Group, the associated costs and possible return of goods
+can be estimated reliably, there is neither continuing
+management involvement to the degree usually
+associated with ownership nor effective control over the
+goods sold and the amount of revenue can be measured
+reliably. The company is principal in all of its revenue
+arrangements, since it is the primary obligor in all of the
+revenue arrangements, as it has pricing latitude and is
+exposed to inventory and credit risks.
+Provisions for chargeback, rebates, discounts and
+medicaid payments are estimated and provided for in the
+year of sales and recorded as reduction of revenue.
+Sales returns
+The Company accounts for sales returns accrual by
+recording an allowance for sales returns concurrent
+with the recognition of revenue at the time of a product
+sale. This allowance is based on the Company's estimate
+of expected sales returns. With respect to established
+products, the Company considers its historical experience
+of sales returns, levels of inventory in the distribution
+channel, estimated shelf life, product discontinuances,
+price changes of competitive products, and the
+introduction of competitive new products, to the extent
+each of these factors impact the Company's business
+and markets. With respect to new products introduced
+by the Company, such products have historically been
+either extensions of an existing line of product where
+the Company has historical experience or in therapeutic
+categories where established products exist and are sold
+either by the Company or the Company's competitors.
+Rendering of services
+Revenue from services rendered is recognised in the
+consolidated statement profit and loss as the underlying
+services are performed. Upfront non-refundable
+payments received are deferred and recognised as
+revenue over the expected period over which the related
+services are expected to be performed.
+Royalties
+Royalty revenue is recognised on an accrual basis in
+accordance with the substance of the relevant agreement
+(provided that it is probable that economic benefits will
+flow to the Group and the amount of revenue can be
+measured reliably). Royalty arrangements that are based
+on production, sales and other measures are recognised
+by reference to the underlying arrangement.
+Dividend and interest income
+p.
+Dividend income is recognised when the Group's right
+to receive the payment is established, which is generally
+when shareholders approve the dividend.
+Present obligations arising under onerous contracts are
+recognised and measured as provisions. An onerous
+contract is considered to exist where the Group has a
+contract under which the unavoidable costs of meeting
+the obligations under the contract exceed the economic
+benefit expected to be received from the contract.
+Onerous contracts
+A provision for restructuring is recognised when the
+Group has a detailed formal restructuring plan and has
+raised a valid expectation in those affected that it will
+carry out the restructuring by starting to implement the
+plan or announcing its main features to those affected by
+it. The measurement of a restructuring provision includes
+only the direct expenditure arising from the restructuring,
+which are those amounts that are both necessarily
+entailed by the restructuring and not associated with the
+ongoing activities of the entity.
+Restructuring
+Group as a lessor
+Rental income from operating lease is generally
+recognised on a straight-line basis over the term of the
+relevant lease. Where the rentals are structured solely
+to increase in line with expected general inflation to
+compensate for the Group's expected inflationary cost
+increases, such increases are recognised in the year in
+which such benefits accrue. Initial direct costs incurred in
+negotiating and arranging an operating lease are added to
+the carrying amount of the leased asset and recognised
+over the lease term on the same basis as rental income.
+Contingent rents are recognised as revenue in the period
+in which they are earned.
+Amounts due from lessees under finance leases are
+recorded as receivables at the Group's net investment
+in the leases. Finance lease income is allocated to
+accounting periods so as to reflect a constant periodic
+rate of return on the Group's net investment outstanding
+in respect of the leases.
+I. Inventories
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade, stores and
+spares and finished goods are measured at the lower of
+cost and net realisable value. The cost of all categories
+of inventories is based on the weighted average method.
+Cost of raw materials and packing materials, stock-in-
+trade, stores and spares includes cost of purchases and
+other costs incurred in bringing the inventories to their
+present location and condition. Cost of work-in-progress
+and finished goods comprises direct material, direct
+labour and an appropriate proportion of variable and
+fixed overhead expenditure, the latter being allocated on
+the basis of normal operating capacity.
+Net realisable value is the estimated selling price in the
+ordinary course of business, less the estimated costs of
+completion and costs necessary to make the sale.
+The factors that the Company considers in determining
+the allowance for slow moving, obsolete and other non-
+saleable inventory include estimated shelf life, planned
+product discontinuances, price changes, ageing of
+inventory and introduction of competitive new products,
+to the extent each of these factors impact the Company's
+business and markets. The Company considers all these
+factors and adjusts the inventory provision to reflect its
+actual experience on a periodic basis
+Financial liabilities designated upon initial recognition at
+fair value through profit or loss are designated as such
+at the initial date of recognition, and only if the criteria
+in Ind AS 109 are satisfied. For instruments not held-for-
+trading financial liabilities designated as at FVTPL, fair
+value gains/losses attributable to changes in own credit
+risk are recognised in OCI, unless the recognition of
+the effects of changes in the liability's credit risk in OCI
+would create or enlarge an accounting mismatch in profit
+or loss, in which case these effects of changes in credit
+risk are recognised in profit or loss. These gains/loss are
+not subsequently transferred to profit or loss. All other
+changes in fair value of such liability are recognised in the
+consolidated statement of profit or loss.
+n.
+Finance leases are capitalised at the commencement of
+the lease at the inception date fair value of the leased
+assets or, if lower, at the present value of the minimum
+lease payments. The corresponding liability to the
+lessor is included in the consolidated balance sheet as a
+finance lease obligation. Lease payments are apportioned
+between finance charges and reduction of the lease
+liability so as to achieve a constant rate of interest on the
+remaining balance of the liability. Finance charges are
+recognised in profit or loss as finance costs. Contingent
+rentals are recognised as expenses in the periods in
+which they are incurred.
+Cash and cash equivalent in the balance sheet comprise
+cash at banks and on hand and short-term deposits with
+an original maturity of three months or less, which are
+subject to an insignificant risk of changes in value.
+Provisions, contingent liabilities and contingent
+assets
+Provisions are recognised when the Group has a present
+obligation (legal or constructive) as a result of past event,
+it is probable that an outflow of resources embodying
+economic benefits will be required to settle the obligation
+and a reliable estimate can be made of the amount of
+obligation. When the Company expects some or all of
+a provision to be reimbursed, for example, under an
+insurance contract, the reimbursement is recognised
+as a separate asset, but only when the reimbursement
+is certain. The expense relating to a provision is
+presented in the statement of profit and loss net of any
+reimbursement.
+If the effect of the time value of money is material,
+provisions are determined by discounting the expected
+future cash flows at a pre-tax rate that reflects current
+market assessments of the time value of money and the
+risks specific to the liability. Where discounting is used,
+the increase in the provision due to the passage of time is
+recognised as a finance cost.
+153
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+154
+O.
+For the purpose of the consolidated statement of cash
+flows, cash and cash equivalents consist of cash and
+short-term deposits, as defined above, net of outstanding
+bank overdrafts as they are considered an integral part of
+the Companies cash management.
+ANNUAL REPORT 2017-18
+395.6
+254.4
+(19.2)
+Additions
+113.1
+3,586.8
+Disposals
+(81.0)
+(2,192.5)
+As at March 31, 2018
+3,383.7
+47,424.4
+Accumulated depreciation
+and impairment
+As at April 01, 2016
+24.4
+Consolidation adjustments
+(1.9)
+Depreciation expense
+Impairment losses
+11,073.0
+(210.9)
+1,295.8
+97.4
+recognised in consolidated
+392.2
+statement of profit and loss
+387.5
+334.2
+At cost or deemed cost
+As at April 01, 2016
+2,269.5
+Consolidation adjustments
+(73.6)
+Taken over on acquisition
+524.1
+Additions
+403.6
+Disposals
+(220.7)
+42,048.6
+(739.6)
+1,566.4
+4,553.2
+(2,124.9)
+As at March 31, 2017
+2,902.9
+45,303.7
+Consolidation adjustments
+61.2
+Taken over on acquisition
+Eliminated on disposals
+of assets
+As at March 31, 2017
+• The Group has transferred its rights to receive
+contractual cash flows from the asset or has assumed
+an obligation to pay the received cash flows in full
+without material delay to a third party under a 'pass-
+through' arrangement; and either (a) the Group has
+transferred substantially all the risks and rewards of
+the asset, or (b) the Group has neither transferred nor
+retained substantially all the risks and rewards of the
+asset, but has transferred control of the asset.
+• The contractual rights to receive cash flows from the
+asset have expired, or
+A financial asset (or, where applicable, a part of a financial
+asset or part of a group of similar financial assets) is
+primarily derecognised (i.e. removed from the Group's
+consolidated balance sheet) when:
+Derecognition
+Equity instruments included within the FVTPL category
+are measured at fair value with all changes recognised in
+the profit or loss.
+If the Group decides to classify an equity instrument as
+at FVTOCI, then all fair value changes on the instrument,
+including foreign exchange gain or loss and excluding
+dividends, are recognised in the OCI. There is no
+recycling of the amounts from OCI to profit or loss, even
+on sale of investment. However, the Group may transfer
+the cumulative gain or loss within equity.
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which are
+held for trading and contingent consideration recognised
+by an acquirer in a business combination to which Ind
+AS 103 applies are classified as at FVTPL. For all other
+equity instruments, the Group may make an irrevocable
+election to present subsequent changes in the fair value
+in OCI. The Group makes such election on an instrument-
+by-instrument basis. The classification is made on initial
+recognition and is irrevocable.
+Equity instruments
+Debt instruments included within the FVTPL category are
+measured at fair value with all the changes in the profit
+or loss.
+In addition, the Group may elect to designate a debt
+instrument, which otherwise meets amortised cost or
+FVTOCI criteria, as at FVTPL. However, such election
+is allowed only if doing so reduces or eliminates a
+measurement or recognition inconsistency (referred to as
+'accounting mismatch').
+FVTPL is a residual category for debt instruments. Any
+debt instrument, which does not meet the criteria for
+categorisation as at amortised cost or as FVTOCI, is
+classified as at FVTPL.
+Debt instrument at FVTPL
+Debt instruments included within the FVTOCI category
+are measured initially as well as at each reporting date
+at fair value. Fair value movements are recognised in
+the other comprehensive income (OCI). However, the
+Group recognises interest income, impairment losses and
+reversals and foreign exchange gain or loss in the profit
+or loss. On derecognition of the asset, cumulative gain
+or loss previously recognised in OCI is reclassified from
+the equity to profit or loss. Interest earned whilst holding
+FVTOCI debt instrument is reported as interest income
+using the EIR method.
+The contractual terms of the instrument give rise
+on specified dates to cash flows that are SPPI on
+the principal amount outstanding.
+The objective of the business model is achieved
+both by collecting contractual cash flows and selling
+the financial assets, and
+b)
+a)
+A 'debt instrument' is measured as at FVTOCI if both of
+the following criteria are met:
+Debt instrument at FVTOCI
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+When the Group has transferred its rights to receive cash
+flows from an asset or has entered into a pass-through
+arrangement, it evaluates if and to what extent it has
+retained the risks and rewards of ownership. When it has
+neither transferred nor retained substantially all of the
+risks and rewards of the asset, nor transferred control
+of the asset, the Group continues to recognise the
+transferred asset to the extent of the Group's continuing
+involvement. In that case, the Group also recognises
+an associated liability. The transferred asset and the
+associated liability are measured on a basis that reflects
+the rights and obligations that the Group has retained.
+On derecognition of a financial asset in its entirety, the
+difference between the asset's carrying amount and the
+sum of the consideration received and receivable and the
+cumulative gain or loss that had been recognised in OCI
+and accumulated in equity is recognised in profit or loss if
+such gain or loss would have otherwise been recognised
+in profit or loss on disposal of that financial asset.
+149
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Financial liabilities are classified as at FVTPL when
+the financial liability is either contingent consideration
+recognised by the Group as an acquirer in a business
+combination to which Ind AS 103 applies or is held
+for trading or is designated upon initial recognition as
+at fair value through profit or loss. Financial liabilities
+are classified as held for trading if they are incurred
+principally for the purpose of repurchasing in the near
+term or on initial recognition it is part of a portfolio of
+identified financial instruments that the Group manages
+together and has a recent actual pattern of short-term
+profit-taking. This category also includes derivative
+financial instruments that are not designated as hedging
+instruments in hedge relationships as defined by Ind AS
+109. Gains or losses on liabilities held for trading are
+recognised in the profit or loss.
+Financial liabilities at fair value through profit
+or loss
+All financial liabilities are subsequently measured at
+amortised cost using the effective interest method or at
+FVTPL.
+Subsequent measurement
+The Company's financial liabilities include trade and other
+payables, loans and borrowings including bank overdrafts,
+financial guarantee contracts and derivative financial
+instruments.
+All financial liabilities are recognised initially at fair value
+and, in the case of loans and borrowings and payables,
+net of directly attributable transaction costs.
+Initial recognition and measurement
+The component parts of compound financial instruments
+(convertible notes) issued by the Group are classified
+separately as financial liabilities and equity in accordance
+with the substance of the contractual arrangements
+and the definitions of a financial liability and an equity
+instrument.
+Compound financial instruments
+Repurchase of the Parent Company's own equity
+instruments is recognised and deducted directly in
+equity. No gain or loss is recognised in profit or loss on
+the purchase, sale, issue or cancellation of the Parent
+Company's own equity instruments.
+36,128.6
+An equity instrument is any contract that evidences a
+residual interest in the assets of an entity after deducting
+all of its liabilities. Equity instruments issued by a Group
+entity are recognised at the proceeds received, net of
+direct issue costs.
+Debt and equity instruments issued by a Group entity
+are classified as either financial liabilities or as equity
+in accordance with the substance of the contractual
+arrangements and the definitions of a financial liability
+and an equity instrument.
+Financial liabilities and equity instruments
+Classification as debt or equity
+As a practical expedient, the Group uses a provision
+matrix to determine impairment loss allowance on
+portfolio of its trade receivables. The provision matrix is
+based on its historically observed default rates over the
+expected life of the trade receivables and is adjusted for
+forward-looking estimates. At every reporting date, the
+historical observed default rates are updated and changes
+in the forward-looking estimates are analysed.
+The Group follows 'simplified approach' for recognition
+of impairment loss allowance on trade receivables or
+any contractual right to receive cash or another financial
+asset. The application of simplified approach does not
+require the Group to track changes in credit risk. Rather,
+it recognises impairment loss allowance based on
+lifetime ECLs at each reporting date, right from its initial
+recognition.
+In accordance with Ind AS 109, the Group applies
+expected credit loss (ECL) model for measurement and
+recognition of impairment loss on the Trade receivables
+or any contractual right to receive cash or another
+financial asset that result from transactions that are
+within the scope of Ind AS 18.
+Impairment of financial assets
+150
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+PHARMA
+Equity instruments
+3,383.7
+As at March 31, 2018
+34,315.1
+(227.7)
+3,486.0
+46.7
+13.7
+212.6
+(29.0)
+3,730.0
+1,824.9
+(54.6)
+Gal-3-817-Res.,
+69,154.9
+(1,193.8)
+2,001.4
+10,502.5
+(4,922.1)
+75,542.9
+665.9
+733.3
+11,247.9
+(977.2)
+87,212.8
+31,891.9
+93.0
+312.8
+652.4
+28.2
+(98.7)
+3,131.8
+10,281.2
+(3,378.6)
+176.4
+1,168.2
+57,174.2
+782.0 84,952.9
+545.0
+780.2 91,590.3
+༔ ༄་་་་་་་ ས་ ན་ ་ ་ས་ ། ས་་
+༔༔༔་ ་ ་ ་ ་
+(719.5)
+6,309.5
+093827739_2333333
+Equipment
+Given
+under
+operating
+Furniture
+and
+fixtures
+Buildings
+Given
+under
+operating
+Plant and
+Equipment
+Lease
+Lease*
+Plant and
+174.9
+(202.4)
+48.5
+༅༅
+ན ་ ་ ་
+སྨན་འཛིན།འགག་ །ཟེར་རྗེ
+ཟླ༅ ་ ་ ན་ ་ ་ ་། མཐས་ །་
+རྟེན་
+༄་།།
+ཟླ་་་ རྨཱ
+(1,266.7)
+22.5
+10,988.6
+Consolidation adjustments
+Taken over on acquisition ^
+2.2
+182.6
+77.2
+Depreciation expense
+1,781.9
+Eliminated on disposals
+of assets
+(24.7)
+(1,734.5)
+As at March 31, 2018
+Carrying amount
+11,295.8
+As at March 31, 2017
+2,880.4
+་་ག་
+taken
+land
+Leasehold Buildings Buildings
+12.6
+272.6
+(35.7)
+2,178.7
+1,605.3
+1,551.3
+Orrs 3 33
+(4,173.5)
+33,401.4
+568.1
+1,880.7
+298.0
+6,854.1
+40,397.5
+42,141.5
+46,815.3
+under
+finance
+Lease*
+Leasehold
+Improvement
+on Building
+NOTE: 3a PROPERTY, PLANT AND EQUIPMENT
+Freehold
+land
+(724.1)
+Financial liabilities that are not held-for-trading and are
+not designated as at FVTPL are measured at amortised
+cost in subsequent accounting periods. The carrying
+Financial liabilities subsequently measured at
+amortised cost
+* includes amount paid under protest
+Aggregate book value (carrying value) of quoted investments
+Other investments - Unquoted
+State Bank of India 4.875%
+NTPC 4.375% Regd. Euro Medium Term Notes
+Housing Development Finance Corporation Ltd - 9.9% Non-
+convertible Debentures of 1,000,000 each fully paid
+National Highways Authority of India - 8.2% Bonds of 1,000
+each fully paid of maturing on January 25, 2022
+Power Finance Corporation Ltd (Series 1) -8.2% Bonds of
+1,000 each fully paid of maturing on February 01, 2022
+Indian Railway Finance Corporation Ltd - 8/8.15% Bonds of
+* 1,000 each fully paid of maturing on February 23, 2022
+Investment in Bonds (various small denomination investments)
+ONGC Videsh 4.625% Regd. Notes
+Quoted - At fair value through other comprehensive income
+In debentures/bonds
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+161
+3,310.2
+0.0
+0.0
+Others *
+Quoted - At fair value through other comprehensive income
+National Savings Certificates [10,000 (March 31, 2017:
+*10,000)]
+51.0
+50,000,000
+97.6
+Aggregate amount of quoted investments at market value
+100,000,000
+Aggregate amount of unquoted investments before impairment
+As at March 31, 2018
+Quantity
+16,000,000
+11,340.5
+175.1
+163,131
+173.5
+163,131
+153.6
+142,393
+152.2
+142,393
+66.7
+61,809
+66.1
+61,809
+259.4
+250
+253.5
+250
+in Million
+As at March 31, 2017
+Quantity
+* in Million
+Aggregate amount of impairment in value of investments
+96.5
+100,000,000
+159.7
+50,000
+0.5
+50,000
+(934.0)
+(934.0)
+934.0
+9,340,000
+934.0
+9,340,000
+598.9
+914,107
+105.1
+1,050,000
+172.3
+1,050,000
+2,353.4
+2,868,623
+3,622.8
+2,868,623
+* in Million
+As at March 31, 2017
+Quantity
+0.5
+(0.5)
+(0.5)
+38,894
+150,000,000
+214.8
+200,000,000
+103.7
+100,000,000
+8.01% Bond of 1 each fully paid maturing June 23, 2020
+Government of Rajasthan UDAY non-SLR bond
+8.21% Bond of 1 each fully paid maturing June 23, 2025
+Government of Rajasthan UDAY non -SLR bond
+8.39% Bond of 1 each fully paid maturing June 23, 2026
+Government of Uttar Pradesh UDAY non -SLR bond
+8.21% Bond of 1 each fully paid maturing June 23, 2026
+Government of Telangana UDAY non -SLR bond
+7.62% Bond of 1 each fully paid maturing March 07, 2026
+Government of Telangana UDAY non -SLR bond
+7.98% Bond of 1 each fully paid maturing March 07, 2030
+Government of Tamil Nadu UDAY non -SLR bond
+8.24% Bond of 1 each fully paid maturing March 22, 2028
+Unquoted
+27.5
+27,400,000
+27.2
+27,400,000
+1,067.4
+27.3
+27.1
+27,400,000
+27.1
+27,400,000
+Quoted - At fair value through other comprehensive income
+Government of Rajasthan UDAY non -SLR bond
+7.75% Bond of * 1 each fully paid maturing June 23, 2018
+Government of Rajasthan UDAY non -SLR bond
+7.86% Bond of 1 each fully paid maturing June 23, 2019
+Government of Rajasthan UDAY non -SLR bond
+(167.0)
+293.2
+(168.2)
+20.2
+167.0
+38,894
+168.2
+27,400,000
+* in Million
+10,000,000
+700,000
+* in Million
+As at
+March 31, 2017
+123.8
+43,830.1
+47,662.0
+43,953.9
+Prepaid expenses
+Capital advances
+10. OTHER NON-CURRENT ASSETS
+* includes amount paid under protest
+Advance income tax (net of provisions)*
+9. INCOME TAX ASSET (NET) [NON-CURRENT]
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+162
+* includes deposits pledged with government authorities of 1.0 Million (March 31, 2017: 1.6 Million)
+# includes receivable towards sale of manufacturing facility
+6,452.2
+1,049.2
+706.2
+168
+309.4
+March 31, 2018
+125.8
+47,536.2
+As at
+* in Million
+As at
+March 31, 2018
+March 31, 2017
+120.7
+105.7
+145.3
+153.4
+266.0
+259.1
+* in Million
+As at
+March 31, 2018
+As at
+March 31, 2017
+23,810.6
+198.1
+47,046.5
+1,001.4
+16,881.9
+39,104.5
+18,303.2
+79,797.0
+66,549.2
+Dues to micro and small enterprises
+Others
+627.7
+82.8
+Others#
+* in Million
+Less: allowance for bad and doubtful loans
+Doubtful
+Unsecured, considered good
+Secured, considered good
+Loans to Employees/Others *
+7. LOANS (NON-CURRENT)
+*includes investment in various small denomination U.S Treasuries, certificates of deposits and commercial papers
+1,101.5
+1,102.7
+2,003.2
+6,429.5
+3,673.4
+22,194.3
+3,673.4
+22,194.3
+4,575.1
+27,521.1
+608.5
+5,306.6
+476.1
+As at
+March 31, 2018
+As at
+March 31, 2017
+10.2
+22,414.5
+Derivatives not designated as hedges
+67.1
+462.0
+653.8
+2.2
+4,589.2
+1.0
+Derivatives designated as hedges
+Margin money/ security against guarantees/ commitments
+Security deposits - unsecured, considered good
+Bank deposits with more than 12 months maturity *
+661.4
+March 31, 2017
+As at
+As at
+* in Million
+698.1
+(0.8)
+0.8
+20.4
+677.7
+22,424.7
+8. OTHER FINANCIAL ASSETS (NON-CURRENT)
+* Others: Loans given to various parties at prevailing market interest rate.
+March 31, 2018
+As at
+As at March 31, 2018
+Quantity
+Others
+Amortisation expense
+550.9
+541.1
+9.8
+Consolidation adjustments
+18,871.2
+17,958.9
+912.3
+As at March 31, 2017
+(542.8)
+(527.7)
+(15.1)
+Eliminated on disposals of assets
+4,125.4
+3,887.8
+237.6
+Amortisation expense
+(591.9)
+(579.8)
+(12.1)
+Consolidation adjustments
+219.7
+15,880.5
+4,497.5
+Eliminated on disposals of assets
+^ Refer note 76
+* Refer note 55
+(e) The aggregate depreciation has been included under depreciation and amortisation expense in the statement of profit and loss.
+(f) For details of assets pledged as security refer note 67 and 68.
+(d) Borrowing cost capitalised during the year Nil (March 31, 2017: * 110.3 Million)
+(c) Deletions / adjustments during the previous year includes refund received from authorities in respect of dismantling charges.
+(a) Buildings include 8,620 (As at March 31, 2017: 8,620) towards cost of shares in a co-operative housing society and also includes * 4.5 Million
+(March 31, 2017: 4.5 Million) towards cost of flats not registered in the name of the Parent Company but is entitled to right of use and occupancy.
+(b) Excludes Assets classified as held for sale (Refer note 66).
+40,869.1
+36,436.6
+35,933.3
+40,248.8
+503.3
+620.4
+Footnotes:
+As at March 31, 2018
+23,787.4
+22,654.2
+1,133.2
+As at March 31, 2017
+Carrying amount
+As at March 31, 2018
+(351.9)
+(343.3)
+(8.6)
+4,717.2
+15,178.6
+701.9
+As at April 01, 2016
+(1,461.4)
+41,065.8
+1,358.4
+(16.1)
+Additions
+Taken over on acquisition
+Consolidation adjustments
+As at March 31, 2017
+Disposals
+Additions
+Taken over on acquisition
+Consolidation adjustments
+As at April 01, 2016
+At cost or deemed cost
+* in Million
+Total
+Trademarks and
+Designs
+Computer
+Software
+NOTE: 3b OTHER INTANGIBLE ASSETS
+Other than internally generated
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+3.5
+42,424.2
+(1,477.5)
+3.5
+99.1
+(25.8)
+15,041.3
+Accumulated amortisation and impairment
+64,656.5
+62,902.9
+1,753.6
+As at March 31, 2018
+(351.9)
+(343.2)
+(8.7)
+Disposals
+8,483.4
+159
+8,150.8
+550.0
+550.0
+667.2
+653.1
+14.1
+55,307.8
+53,892.2
+1,415.6
+15,140.4
+(782.8)
+(757.0)
+332.6
+In government securities
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Notes to the Consolidated Financial Statements
+252.8
+429.5
+244.9
+15,853
+252.8
+252.8
+15,853
+183.9
+0.7
+10,564
+* in Million
+570.1
+2,463.5
+2,463.5
+3,811.0
+As at March 31, 2017
+Quantity
+* in Million
+As at March 31, 2018
+Quantity
+1,881.0
+867.6
+1,745.3
+2,748.6
+160
+Aggregate carrying value of unquoted investments
+Artes Biotechnology GmbH
+429.5
+S&I Ophthalmic LLC
+ANNUAL REPORT 2017-18
+Notes to the Consolidated Financial Statements
+Less: Impairment in value of investment
+Reanal Finomvegyszergyar Zrt. (Reanal Ltd)
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+Biotech Consortium India Limited
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+Shimal Research Laboratories Limited
+Unquoted
+In equity instruments
+Shares of USD 0.00001 each fully paid
+Krystal biotech, Inc.
+Shares of 10 each fully paid
+Krebs Biochemicals and Industries Limited
+Shares of USD 0.01 each fully paid
+Impax Laboratories Inc.,
+Quoted - At fair value through other comprehensive income
+In equity instruments
+INVESTMENTS (NON-CURRENT)
+6.
+for the year ended March 31, 2018
+CONSOLIDATED FINANCIAL STATEMENTS
+MSD-Sun, LLC
+Investments in equity instruments
+Unquoted, fully paid
+Investments in equity instruments
+Quoted, fully paid
+[28,760 (As at March 31, 2017: 28,760)]
+Generic Solar Power LLP
+Trumpcard Advisors and Finvest LLP
+Investments in limited liability partnership
+Versant Venture Capital V, L.P.
+Fraizer Healthcare VII, L.P.
+Investments in limited partnership [Refer note 39 (z)]
+Medinstill LLC
+Investments in equity instruments
+Unquoted, fully paid
+accounting
+Carrying amount determined using equity method of
+* in Million
+As at March 31, 2017
+Quantity
+* in Million
+As at March 31, 2018
+Quantity
+INVESTMENTS IN ASSOCIATES (NON-CURRENT)
+4.
+for the year ended March 31, 2018
+(At cost, less impairment in value of investments)
+scPharmaceuticals Inc.
+Zenotech Laboratories Limited
+[Shares of 10 each fully paid [Refer note 39 (t)]
+Carrying amount determined using equity method of
+accounting
+5. INVESTMENTS IN JOINT VENTURES (NON-CURRENT)
+in an associate
+Aggregate amount of impairment in value of investments
+Market value of quoted investment
+Aggregate book value (carrying value) of quoted investments
+Aggregate carrying value of unquoted investments
+4,605.4
+(2,463.5)
+794.4
+2,463.5
+Other assets
+16,128,078
+2,167,679.0
+0.0
+312.5
+444.6
+0.0
+1,436.9
+951.4
+1,110.2
+1,999
+1,436.4
+1,999
+Less: Impairment in value of investment
+867.6
+12,111.1
+PHARMA
+3,146.3
+(3,142.9)
+78,152.8
+(2,109.9)
+72,026.1
+* in Million
+As at
+As at
+March 31, 2017
+March 31, 2018
+55,137.3
+24,099.3
+49,192.3
+35,576.1
+1,813.9
+10.6
+6.5
+79,253.7
+45.7
+86,628.0
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+15. BANK BALANCES OTHER THAN DISCLOSED IN NOTE 14 ABOVE
+Deposit accounts (*)
+Earmarked balances with banks
+74,136.0
+Unpaid dividend accounts
+81,295.7
+3,142.9
+35,726.7
+5,179.5
+230.1
+230.1
+2,078.7
+Aggregate amount of impairment in value of investments
+13. TRADE RECEIVABLES
+Unsecured
+Considered good
+Considered doubtful
+Less: allowance for doubtful debts (expected credit loss allowance)
+14. CASH AND CASH EQUIVALENTS
+Balance with banks
+In current accounts
+In deposit accounts with original maturity less than 3 months
+Cheques, drafts on hand
+Cash on hand
+164
+As at
+March 31, 2018
+* in Million
+As at
+March 31, 2017
+78,152.8
+72,026.1
+2,109.9
+Balances held as margin money or security against guarantees and other commitments (*)
+* in Million
+As at
+As at
+454.0
+512.0
+(512.0)
+18.2
+896.1
+454.0
+8.7
+9,728.1
+4.5
+4.5
+(4.5)
+(4.5)
+914.3
+9,736.8
+914.3
+10,190.8
+* in Million
+As at
+As at
+March 31, 2018
+316.0
+March 31, 2017
+599.9
+Interest accrued on investments/balances with banks
+Interest accrued and due on loans (Refer note 69)
+Considered good
+March 31, 2017
+March 31, 2018
+* in Million
+As at
+As at
+March 31, 2018
+19,610.3
+March 31, 2017
+64,573.9
+73.0
+59.3
+356.8
+147.2
+20,040.1
+64,780.4
+(*) Other bank balances include deposits amounting to 115.8 Million (March 31, 2017: 25,700.8 Million) and margin monies amounting to 327.7 Million
+(March 31, 2017: 70.2 Million) which have an original maturity of more than 12 months.
+Aggregate amount of unquoted investments before impairment
+16. LOANS (CURRENT)
+Unsecured, considered good
+Considered doubtful (Refer notes 69 and 75)
+Less: allowance for doubtful loans
+Loans to Employees/Others*
+Secured, considered good
+Unsecured, considered good
+Considered doubtful
+Less: allowance for doubtful loans
+* Others: Loans given to various parties at prevailing market interest rate.
+17. OTHER FINANCIAL ASSETS (CURRENT)
+Loans to related parties
+Considered doubtful
+35,726.7
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+@includes investment in various small denomination U.S Treasuries, certificates of deposits and commercial papers
+Finished goods
+Stock-in-trade
+Goods in transit
+Stores and spares
+Goods in transit
+24,360.1
+261.1
+21,212.3
+598.7
+24,621.2
+21,811.0
+14,514.2
+15,467.2
+22,429.0
+24,986.8
+6,217.1
+25.5
+6,242.6
+4,614.3
+94.7
+4,709.0
+999.0
+0.9
+999.9
+1,350.9
+3.2
+1,354.1
+68,806.9
+68,328.1
+(i)
+Work-in-progress
+Inventory write downs are accounted, considering the nature of inventory, ageing, liquidation plan and net realisable value. Write
+downs of inventories amounted to 10,437.8 Million (March 31, 2017: ₹ 9,174.9 Million). The changes in write downs are recognised
+as an expense in the consolidated statement of profit and loss.
+March 31, 2018
+Lower of cost and net realisable value
+8,964.8
+11. INVENTORIES
+* in Million
+As at
+As at
+March 31, 2017
+March 31, 2018
+31,896.6
+31,896.6
+As at
+March 31, 2018
+4,430.3
+91.0
+1,122.1
+31,250.1
+31,250.1
+* in Million
+As at
+March 31, 2017
+3,971.7
+91.1
+2,058.5
+740.5
+16.7
+5,660.1
+6,861.8
+As at
+* in Million
+As at
+March 31, 2017
+Raw materials and packing materials
+Goods in transit
+(ii)
+For details of inventories pledged as security refer note 67 and 68.
+(iii) The cost of inventories recognised as an expense is disclosed in notes 33, 34 and 37 and as purchases of stock-in-trade in the
+consolidated statement of profit and loss.
+26.9
+22,087.4
+22,316
+14.2
+6,032
+43.1
+2.0
+13,612.4
+170.8
+Unquoted
+Unit of 10 each
+Unit of 100 each
+Unit of 1000 each
+In equity instruments
+Unquoted
+420.7
+4,756.5
+3.1
+400.1
+1,675.5
+2.3
+40,906.2
+2,308.8
+27,400,000
+* in Million
+As at March 31, 2017
+Quantity
+* in Million
+163
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+12. INVESTMENTS (CURRENT)
+In Government securities
+Quoted (Fair value through other comprehensive income)
+Government of Rajasthan UDAY non -SLR bond
+7.75% Bond of 1 each fully paid maturing June 23, 2018
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+In equity instruments
+Quoted (Fair value through other comprehensive income)
+FS Invt Corp Com
+In bonds/debentures
+Quoted (Fair value through other comprehensive income)
+I Shares New York Amt Free Muni
+SPDR Ser TR Barclays Long
+Investment in Bonds (various small denomination
+investments)
+In mutual funds *
+As at March 31, 2018
+Quantity
+Investment in others@
+Less: allowance for doubtful interest accrued and due on loans
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Derivatives not designated as hedges
+Debenture redemption reserve - The Company is required to create
+a debenture redemption reserve out of the profits which is available
+for payment of dividend. This reserve will be transferred to retained
+earning on redemption of debentures.
+Share options outstanding account - The fair value of the equity
+settled share based payment transactions is recognised to share
+options outstanding account.
+Amalgamation reserve - The reserve was created pursuant to
+scheme of amalgamation in earlier years.
+Capital redemption reserve - The Company has recognised capital
+redemption reserve on buyback of equity shares from its retained
+earnings. The amount in capital redemption reserve is equal to
+nominal amount of the equity shares bought back.
+Legal reserve - The reserve has been created by an overseas
+subsidiary in compliance with requirements of local laws.
+General reserve: The reserve arises on transfer portion of the net
+profit pursuant to the earlier provisions of the Companies Act, 1956.
+21. BORROWINGS (NON-CURRENT)
+Mandatory transfer to general reserve is not required under the
+Companies Act, 2013.
+Debt instrument through OCI - This represents the cumulative gain
+and loss arising on fair valuation of debt instruments measured
+through other comprehensive income. This amount will be
+reclassified to profit and loss account on derecognition of debt
+instrument.
+Equity instrument through OCI - The Company has elected to
+recognise changes in the fair value of certain investment in equity
+instrument in other comprehensive income. This amount will
+be reclassified to retained earnings on derecognition of equity
+instrument.
+Foreign currency translation reserve - Exchange differences relating
+to the translation of the results and net assets of the Group's
+foreign operations from their functional currencies to the Group's
+presentation currency (i.e. *) are recognised directly in the other
+comprehensive income and accumulated in foreign currency
+translation reserve. Exchange difference in the foreign currency
+translation reserve are reclassified to profit or loss on the disposal of
+the foreign operation.
+Effective portion of cash flow hedges - The cash flow hedging
+reserve represents the cumulative effective portion of gains or
+losses arising on changes in fair value of designated portion of
+hedging instruments entered into for cash flow hedges. The
+cumulative gain or loss arising on the changes of the fair value of the
+designated portion of the hedging instruments that are recognised
+and accumulated under the cash flow hedges reserve will be
+reclassified to profit or loss only when the hedged transaction affects
+the profit or loss, or included as a basis adjustment to the non-
+financial hedged item.
+Redeemable non-convertible debentures (unsecured)
+Term loans
+From banks (unsecured)
+From banks (secured)
+From department of biotechnology (secured)
+Long-term maturities of finance lease obligations (secured)
+Deferred payment liabilities (unsecured - at amortised cost)
+(Refer notes 55 and 67 for borrowings [Non-Current])
+* in Million
+As at
+As at
+March 31, 2018
+Securities premium reserve - The amount received in excess of
+face value of the equity shares is recognised in securities premium
+reserve. In case of equity-settled share based payment transactions,
+the difference between fair value on grant date and nominal value
+of share is accounted as securities premium reserve. This reserve is
+utilised in accordance with the provisions of the Companies
+Act, 2013.
+March 31, 2017
+Capital reserve - During amalgamation / merger / acquisition, the
+excess of net assets taken, over the consideration paid, if any, is
+treated as capital reserve.
+for the year ended March 31, 2018
+2,083.4
+26.4
+43.8
+43.8
+7.5
+7.5
+3.6
+1.1
+35,578.0
+317,641.5
+35,578.0
+306,456.9
+(93.9)
+(3.4)
+1,648.6
+10,120.1
+(29.5)
+378,606.3
+339.7
+7,015.7
+46.2
+363,997.4
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+Nature and purpose of each reserve
+5,000.0
+15,538.7
+7,498.2
+From banks (unsecured)
+Commercial paper (unsecured)
+(Refer note 68 for Borrowings [current])
+26. TRADE PAYABLES
+* in Million
+As at
+As at
+March 31, 2018
+March 31, 2017
+9.1
+307.4
+316.5
+1,048.0
+1,048.0
+* in Million
+As at
+As at
+March 31, 2018
+2,219.0
+1,825.6
+4,044.6
+Security deposits (unsecured, considered good)
+March 31, 2017
+Other loans
+From banks (unsecured)
+From others (unsecured)
+From banks (secured)
+Loans repayable on demand
+1,035.3
+108.2
+1,033.4
+5.3
+1,085.2
+108.2
+662.5
+6.7
+17,720.9
+14,360.8
+167
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+507.5
+11,894.6
+Notes to the Consolidated Financial Statements
+22. OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+Interest accrued
+Other financial liabilities*
+* includes contractual and expected milestone obligations.
+23. PROVISIONS (NON-CURRENT)
+Employee benefits (Refer note 56)
+Others (Refer note 61)
+24. OTHER NON-CURRENT LIABILITIES
+Deferred revenue
+25. BORROWINGS (CURRENT)
+for the year ended March 31, 2018
+507.5
+11,929.1
+1,250.0
+Others
+* in Million
+As at
+March 31, 2017
+Balances with government authorities*
+Others
+* includes balances of goods and service tax.
+19. EQUITY SHARE CAPITAL
+Authorised
+* in Million
+As at
+As at
+March 31, 2018
+March 31, 2017
+2,701.0
+2,159.2
+1,212.2
+2,601.6
+6,525.6
+9,023.1
+328.8
+206.3
+(328.8)
+(206.3)
+12,739.2
+8,997.8
+Less: allowance for doubtful
+Considered doubtful
+Considered good
+Advances for supply of goods and services
+(214.9)
+0.2
+214.9
+0.0
+0.2
+107.1
+70.9
+700.7
+627.7
+Refund due from government authorities
+Others
+2,079.4
+311.5
+23,489.5
+1,592.3
+4,795.5
+2,258.5
+* As at March 31, 2018 and as at March 31, 2017 includes receivable towards sale of assets/manufacturing facilities.
+Balances with government authorities*
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+18. OTHER CURRENT ASSETS
+Export incentives receivable
+Prepaid expenses
+959.8
+168.2
+22,949.9
+165
+Number of shares
+B)
+Reserves and surplus
+Capital reserve
+C)
+Securities premium reserve
+Debenture redemption reserve
+Share options outstanding account
+Amalgamation reserve
+Capital redemption reserve
+Legal reserve
+A) Share application money pending allotment (March 31, 2017: ₹ 7,177)
+General reserve
+Items of other comprehensive income (OCI)
+Foreign currency translation reserve
+Equity instrument through other comprehensive income
+Effective portion of cash flow hedges
+Total reserves and surplus
+Refer statement of changes in equity for detailed movement in other equity balances
+As at March 31, 2018
+March 31, 2018
+As at
+166
+Retained earnings
+20. OTHER EQUITY
+Debt instrument through other comprehensive income
+2,399,260,815
+Equity shares of 1 each
+* in Million
+2,399.3
+As at March 31, 2017
+Number of shares
+* in Million
+5,990,000,000
+Cumulative preference shares of ₹ 100 each
+5,990.0
+10.0
+6,000.0
+5,990,000,000
+5,990.0
+100,000
+100,000
+5,990,100,000
+5,990,100,000
+6,000.0
+Issued, subscribed and fully paid up
+2,399.3
+Equity shares of 1 each (Refer note 42)
+2,399,323,180
+2,399,323,180
+10.0
+2,399.3
+2,399.3
+2,399,260,815
+660.6
+Power and fuel
+Conversion and other manufacturing charges
+Consumption of materials, stores and spare parts
+Year ended
+March 31, 2017
+Year ended
+March 31, 2018
+3,998.0
+5,175.7
+437.8
+Rent
+694.7
+265.8
+* in Million
+Rates and taxes
+6,499.4
+Selling and distribution
+1,068.2
+1,312.9
+21.5
+3,022.3
+3,237.2
+1,237.8
+1,120.8
+Insurance
+5,250.9
+6,408.8
+6,531.0
+7,511.5
+Travelling and conveyance
+Printing and stationery
+Repairs and maintenance
+Commission on sale
+5,599.7
+4,227.8
+* in Million
+2,854.6
+47,082.9
+Year ended
+March 31, 2018
+Share based payments to employees
+Contribution to provident and other funds *
+Salaries, wages and bonus
+35. EMPLOYEE BENEFITS EXPENSE
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+170
+(2,716.3)
+42,786.5
+(339.8)
+(45,163.0)
+13,661.6
+March 31, 2017
+Year ended
+March 31, 2017
+10.9
+43,229.1
+3,903.7
+Year ended
+March 31, 2017
+* in Million
+March 31, 2018
+Year ended
+37. OTHER EXPENSES
+Exchange differences regarded as an adjustment to borrowing costs
+Unwinding of discounts on provisions
+Interest expense for financial liabilities carried at amortised cost
+Interest expense others
+36. FINANCE COSTS
+53,670.5
+2,684.9
+includes gratuity expense of 450.4 Million (March 2017 * 279.0 Million)
+Staff welfare expenses
+2,760.6
+49,023.0
+32.3
+(1.0)
+3,001.0
+20,736.5
+171
+1,130.0
+Year ended
+March 31, 2017
+Year ended
+March 31, 2018
+* in Million
+38. RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE CONSOLIDATED STATEMENT OF
+PROFIT AND LOSS
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+84,561.3
+80,896.0
+10,348.6
+8,775.7
+Miscellaneous expenses
+6.8
+203.6
+26.7
+Salaries, wages and bonus
+Impairment of property, plant and equipment and goodwill other intangible assets
+Contribution to provident and other funds
+Consumption of materials, stores and spare parts
+Year ended
+3,976.2
+3,516.6
+228.0
+250.9
+406.3
+277.2
+5,270.2
+6,062.5
+Printing and stationery
+Repairs and maintenance
+Insurance
+Rent
+Rates and taxes
+Power and fuel
+Staff welfare expenses
+(725.7)
+Impairment in value of investments
+232.9
+341.8
+1,095.9
+Provision/write off for doubtful trade receivables/advances
+726.1
+801.9
+Communication
+3,339.9
+3,633.9
+Freight outward and handling charges
+5,250.1
+5,190.2
+859.7
+612.3
+4,097.0
+4,263.1
+Professional, legal and consultancy
+16,153.1
+14,642.6
+Donations
+196.1
+Payment to auditors (net of input credit, where applicable)
+(5.2)
+(729.7)
+(Decrease)/increase of excise duty on inventories
+2,703.0
+739.2
+1,350.0
+Excise duty on sales
+82.5
+Net (gain) / loss on foreign currency transactions
+127.5
+232.9
+Loss on sale/write off of property, plant and equipment and intangible assets, net
+32.1
+254.8
+(3,730.7)
+* in Million
+March 31, 2018
+Year ended
+March 31, 2018
+45,163.0
+329.8
+(43,185.8)
+2,756.8
+48,339.8
+51,096.6
+322.1
+As at
+318.6
+4,620.5
+13.4
+48.4
+145.1
+5,382.1
+1,205.8
+3,082.7
+* in Million
+As at
+March 31, 2017
+March 31, 2018
+4,887.5
+301.1
+As at
+30. CURRENT TAX LIABILITIES (NET)
+Employee benefits (Refer note 56)
+Others (Refer note 61)
+29. PROVISIONS (CURRENT)
+Others
+* in Million
+As at
+March 31, 2017
+Deferred revenue
+2,220.3
+40,159.1
+302,642.3
+13,142.1
+315,784.4
+Year ended
+March 31, 2017
+* in Million
+4,235.2
+264,894.6
+260,659.4
+Year ended
+March 31, 2018
+1,471.2
+1,471.2
+March 31, 2017
+* in Million
+As at
+Sale of products (Refer note 71)
+Other operating revenues
+31. REVENUE FROM OPERATIONS
+1,328.3
+1,328.3
+March 31, 2018
+Provision for income tax [Net of advance income tax]
+As at
+37,938.8
+169
+Advance from customers
+28. OTHER CURRENT LIABILITIES
+39.5
+228.5
+17,368.2
+6,106.3
+Interest accrued
+Current maturities of finance lease obligations (Refer notes 55 and 67)
+Current maturities of long-term debt (Refer note 67)
+* in Million
+As at
+March 31, 2017
+March 31, 2018
+As at
+27. OTHER FINANCIAL LIABILITIES (CURRENT)
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+335.5
+Statutory remittances
+384.1
+Security deposits
+* includes claims, recall charges, contractual and expected milestone obligations, trade and other commitments.
+217.4
+1,883.8
+22,116.3
+2,148.5
+13,377.2
+Others*
+26.6
+35.8
+143.7
+Derivatives not designated as hedges
+Derivatives designated as hedges
+1,940.7
+4,141.2
+Payables for purchase of property, plant and equipment
+179.4
+151.3
+76.6
+86.4
+Unpaid dividends
+2,307.0
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Notes to the Consolidated Financial Statements
+598.7
+201.3
+249.4
+296.1
+134.4
+258.6
+618.5
+170.6
+18.7
+31.3
+Miscellaneous income
+Gain on disposal of an associate entity
+Lease rental and hire charges
+Insurance claims
+Net gain on disposal of property, plant and equipment and other intangible assets
+Sundry balances written back, net
+325.5
+72.2
+8,387.6
+33. COST OF MATERIALS CONSUMED
+Inventories at the beginning of the year
+Foreign currency translation difference
+Inventories at the end of the year
+34. CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+(174.9)
+(21,811.0)
+51,246.1
+52,565.2
+20,495.8
+171.0
+21,811.0
+17.5
+47,327.2
+91.5
+(24,621.2)
+44,626.0
+Year ended
+March 31, 2017
+* in Million
+Year ended
+March 31, 2018
+Inventories at the end of the year
+Foreign currency translation difference
+Purchases during the year
+Inventories acquired on acquisition (Refer note 76)
+Inventories at the beginning of the year
+Raw materials and packing materials
+6,231.5
+PHARMA
+1,236.6
+(7.5)
+Investments in debt instruments at fair value through other comprehensive income
+73.4
+Investments carried at amortised cost
+769.3
+921.4
+Loans at amortised cost
+1,602.3
+1,399.0
+Bank deposits at amortised cost
+Year ended
+March 31, 2017
+* in Million
+Year ended
+March 31, 2018
+Interest income on:
+32. OTHER INCOME
+for the year ended March 31, 2018
+553.9
+Net gain arising on financial assets measured at fair value through profit or loss
+61.0
+9.7
+Net gain/(loss) on sale of financial assets measured at fair value through other comprehensive
+income
+479.3
+234.0
+Net gain on sale of financial assets measured at fair value through profit or loss
+420.5
+371.6
+Dividend income on investments
+3,711.7
+5,197.6
+343.3
+1,402.0
+Others (includes interest on income tax refund)
+852.7
+921.3
+Other financial assets carried at amortised cost
+Investments carried at fair value through profit or loss
+366.3
+13
+318.0
+Sun Pharmaceutical Industries (Australia) Pty Limited
+Sun Pharmaceuticals Germany GmbH
+36
+Sun Pharmaceuticals Spain, S.L.U.
+35
+Sun Pharmaceuticals Italia S.R.L.
+34
+33
+31
+(Refer note w)
+100.00%
+100.00%
+United Kingdom
+Sun Pharmaceuticals UK Limited
+30
+32 Aditya Acquisition Company Ltd.
+99.99%
+Australia
+Netherlands
+37 Sun Pharmaceuticals France
+100.00%
+100.00%
+Germany
+(Refer note g)
+Spain
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+Italy
+Israel
+France
+99.99%
+100.00%
+100.00%
+100.00%
+India
+Foundation for Disease Elimination and Control of India
+24
+100.00%
+100.00%
+Netherlands
+Sun Pharma (Netherlands) B.V. (Formerly known as Ranbaxy
+(Netherlands) B.V.)
+23
+85.31%
+85.31%
+Nigeria
+Ranbaxy Nigeria Limited
+71.22%
+25 Zenotech Laboratories Limited
+100.00%
+India
+(Refer note t & u)
+100.00%
+100.00%
+United States of America
+United States of America
+Hungary
+Alkaloida Chemical Company Zrt.
+29
+The Taro Development Corporation
+28
+Chattem Chemicals Inc.
+27
+Step down Subsidiaries
+100.00%
+(Refer note n)
+(Refer note n)
+India
+Sun Pharma Medisales Private Limited (Formerly known as
+Solrex Pharmaceuticals Company)
+26
+57.56%
+90.74%
+100.00%
+38
+100.00%
+United Arab Emirates
+Sun Laboratories FZE
+48
+100.00%
+100.00%
+United States of America
+Morley & Company, Inc.
+47
+100.00%
+100.00%
+United Arab Emirates
+Sun Pharma Healthcare FZE
+46
+100.00%
+100.00%
+100.00%
+49
+Israel (Refer note b)
+Cayman Islands, British
+Taro Pharmaceuticals North America, Inc.
+52
+72.81%
+74.82%
+United States of America
+Taro Pharmaceuticals U.S.A., Inc.
+51
+72.81%
+74.82%
+Canada
+Taro Pharmaceuticals Inc.
+50
+72.81%
+74.82%
+Taro Pharmaceutical Industries Ltd. (Taro)
+100.00%
+Japan
+45
+41
+100.00%
+100.00%
+Canada
+Sun Global Canada Pty. Ltd.
+40
+100.00%
+100.00%
+South Africa
+Sun Pharmaceuticals SA (Pty) Ltd
+39
+100.00%
+100.00%
+United Arab Emirates
+Sun Pharma Global FZE
+Sun Pharma Philippines, Inc.
+Sun Pharma Japan Ltd.
+Philippines
+100.00%
+100.00%
+100.00%
+India
+Caraco Pharmaceuticals Private Limited
+44
+100.00%
+100.00%
+United Arab Emirates
+Sun Global Development FZE
+43
+100.00%
+100.00%
+South Korea
+Sun Pharmaceuticals Korea Ltd.
+42
+100.00%
+349.6
+Malaysia
+21
+100.00%
+100.00%
+United States of America
+Sun Pharmaceutical Industries, Inc.
+3
+72.50%
+72.50%
+Bangladesh
+Sun Pharmaceutical (Bangladesh) Limited
+2
+100.00%
+100.00%
+India
+Green Eco Development Centre Limited
+1
+4
+Direct Subsidiaries
+Sun Farmaceutica do Brasil Ltda.
+100.00%
+99.33%
+Peru
+Sun Pharmaceutical Peru S.A.C.
+7
+100.00%
+100.00%
+Mexico
+SPIL De Mexico S.A. DE C.V.
+6
+75.00%
+75.00%
+Mexico
+Sun Pharma De Mexico S.A. DE C.V.
+5
+100.00%
+Brazil
+99.33%
+Sun Pharmaceutical Industries Limited
+March 31, 2017
+Professional, legal and consultancy
+57.1
+39.4
+Communication
+209.6
+182.6
+Travelling and conveyance
+40.2
+41.0
+583.2
+524.5
+41.1
+15.2
+92.9
+89.1
+6,787.5
+Parent Company
+7,939.4
+4.8
+for the year ended
+March 31, 2018
+Country of Incorporation
+Particulars
+Proportion of ownership interest
+39 a) List of entities included in the Consolidated Financial Statements is as under:
+423.0
+434.2
+21,024.3
+148.5
+20,520.9
+11.2
+2.8
+145.7
+Receipts from research activities
+Miscellaneous income
+Less:
+(0.4)
+1,930.4
+21,458.5
+20,669.4
+2,206.4
+Loss on sale/write off of property, plant and equipment and intangible assets, net
+Miscellaneous expenses
+Ranbaxy (Malaysia) SDN. BHD.
+8
+Russia
+172
+(Refer note n)
+100.00%
+India
+Ranbaxy Drugs Limited
+18
+100.00%
+100.00%
+France
+Ranbaxy Pharmacie Generiques
+17
+100.00%
+100.00%
+India
+Softdeal Trading Company Private Limited
+ANNUAL REPORT 2017-18
+16
+CONSOLIDATED FINANCIAL STATEMENTS
+for the year ended March 31, 2018
+222 222
+(Refer note n)
+100.00%
+India
+Gufic Pharma Limited
+20
+(Refer note n)
+March 31, 2017
+100.00%
+India
+19 Vidyut Investments Limited
+March 31, 2018
+for the year ended
+Proportion of ownership interest
+Country of Incorporation
+Particulars
+Notes to the Consolidated Financial Statements
+OOO "Sun Pharmaceutical Industries" Limited
+100.00%
+Mauritius
+India
+Faststone Mercantile Company Private Limited
+11
+100.00%
+100.00%
+India
+Sun Pharma Laboratories Limited
+10
+100.00%
+100.00%
+Venezuela
+Sun Pharma De Venezuela, C.A.
+9
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+Neetnav Real Estate Private Limited
+Sun Pharma Holdings
+15
+100.00%
+100.00%
+India
+Skisen Labs Private Limited
+14
+100.00%
+100.00%
+West Indies
+India
+Realstone Multitrade Private Limited
+100.00%
+100.00%
+India
+12
+Sun Pharmaceutical Industries (Europe) B.V.
+53
+Notes to the Consolidated Financial Statements
+100.00%
+(Refer note y)
+99
+Ranbaxy Inc.
+United States of America
+100.00%
+100.00%
+100 Ranbaxy Pharmaceuticals, Inc.
+United States of America
+100.00%
+(Refer note v)
+101 Ranbaxy (Thailand) Co., Ltd.
+102 Ohm Laboratories, Inc.
+103 Ranbaxy Laboratories, Inc.
+Thailand
+100.00%
+100.00%
+United States of America
+Proportion of ownership interest
+for the year ended
+67.50%
+100.00%
+United States of America
+Morocco
+Country of Incorporation
+Particulars
+for the year ended March 31, 2018
+100.00%
+CONSOLIDATED FINANCIAL STATEMENTS
+174
+(Refer note v)
+100.00%
+United States of America
+100.00%
+100.00%
+ANNUAL REPORT 2017-18
+United Kingdom
+Ranbaxy Europe Limited
+98
+100.00%
+South Africa
+100.00%
+100.00%
+South Africa
+Laboratorios Ranbaxy, S.L.U.
+100.00%
+93 Be-Tabs Investments (Pty) Ltd
+95
+94
+100.00%
+100.00%
+South Africa
+Ranbaxy South Africa (Pty) Ltd
+92 Ranbaxy Pharmaceuticals (Pty) Ltd
+March 31, 2018
+Sonke Pharmaceuticals Proprietary Limited
+70.00%
+100.00%
+100.00%
+United Kingdom
+Ranbaxy Holdings (U.K.) Limited
+97
+100.00%
+South Africa
+100.00%
+Ranbaxy (U.K.) Limited
+96
+100.00%
+100.00%
+Spain
+70.00%
+United Kingdom
+91
+March 31, 2017
+67.50%
+100.00%
+100.00%
+111 Sun Pharmaceutical Medicare Limited
+112 JSC Biosintez
+113 Sun Pharmaceuticals Holdings USA, Inc.
+114 Zenotech Laboratories Nigeria Limited
+115 Zenotech Inc
+116 Zenotech Farmaceutica Do Brasil Ltda
+Name of Joint Venture Entities
+117 MSD Sun LLC
+118 S & Ophthalmic LLC
+119 Artes Biotechnology GmbH
+Name of Subsidiary of Joint Venture Entity
+120 MSD Sun FZ LLC
+Name of Associates
+121 Zenotech Laboratories Limited
+122 Daiichi Sankyo (Thailand) Ltd.
+123 Medinstill LLC
+124 Fraizer Healthcare VII, L.P.
+Switzerland
+India
+127 scPharmaceuticals Inc.
+126 Generic Solar Power LLP
+125 Versant Venture Capital V, L.P.
+(Refer note z)
+19.99%
+6.83%
+19.99%
+110 Ocular Technologies SARL
+United States of America
+United States of America
+Thailand
+(Refer note t)
+46.84%
+(Refer note p)
+India
+Russia
+(Refer note r)
+109 Insite Vision Ltd.
+108 Insite Vision Incorporated
+106 "Ranbaxy Pharmaceuticals Ukraine" LLC
+107 Perryton Wind Power LLC
+85.10%
+85.10%
+100.00%
+100.00%
+(Refer note s)
+100.00%
+United States of America
+Nigeria
+(Refer note aa)
+100.00%
+100.00%
+United States of America
+United Kingdom
+(Refer note m)
+United States of America
+100.00%
+100.00%
+Ukraine
+100.00%
+57.50%
+105 Sun Pharmaceuticals Morocco LLC (Formerly known as Ranbaxy
+Morocco LLC)
+104 Ranbaxy Signature LLC
+45.00%
+(Refer note q)
+45.00%
+Germany
+50.00%
+100.00%
+United States of America
+50.00%
+United States of America
+(Refer note u)
+(Refer note u)
+57.56%
+(Refer note u)
+38.21%
+Brazil
+United States of America
+(Refer note o)
+100.00%
+100.00%
+Russia
+100.00%
+70
+2 Independence Way LLC
+United States of America
+100.00%
+100.00%
+71
+Thallion Pharmaceutical Inc.,
+United States of America
+(Refer note I)
+72
+Universal Enterprises Private Limited
+India
+100.00%
+100.00%
+73
+Sun Pharma Switzerland Ltd.
+76
+100.00%
+100.00%
+United States of America
+Pharmalucence, Inc.
+75
+100.00%
+100.00%
+Kenya
+Sun Pharma East Africa Limited
+74
+100.00%
+100.00%
+Switzerland
+100.00%
+United States of America
+URL PharmPro, LLC
+69
+(Refer note i)
+100.00%
+100.00%
+72.81%
+United States of America
+Sweden
+India
+72.81%
+(Refer note i)
+72.81%
+United States of America
+Canada
+March 31, 2017
+March 31, 2018
+United States of America
+Dusa Pharmaceuticals New York, Inc.
+65
+74.82%
+74.82%
+PI Real Estate Ventures, LLC
+100.00%
+(Refer note j)
+100.00%
+100.00%
+United States of America
+Dungan Mutual Associates, LLC
+68
+100.00%
+100.00%
+100.00%
+Mutual Pharmaceutical Company Inc.
+67
+(Refer note k)
+United States of America
+Sirius Laboratories Inc
+66
+United States of America
+United States of America
+100.00%
+100.00%
+100.00%
+100.00%
+Italy
+Ranbaxy Italia S.P.A.
+86
+100.00%
+87
+100.00%
+Ranbaxy Ireland Limited
+85
+100.00%
+100.00%
+Germany
+Ranbaxy GmbH
+Ireland
+84
+Sun Pharmaceutical Industries S.A.C. (Formerly known as
+100.00%
+AO Ranbaxy (Formerly known as ZAO Ranbaxy)
+90
+96.70%
+96.81%
+Romania
+Terapia SA
+Peru
+89
+100.00%
+Poland
+Ranbaxy (Poland) SP. Z O.O.
+88
+Ranbaxy - PRP (Peru) S.A.C.)
+100.00%
+100.00%
+United States of America
+100.00%
+Germany
+100.00%
+Canada
+Ranbaxy Pharmaceuticals Canada Inc.
+79
+100.00%
+100.00%
+100.00%
+Brazil
+78
+100.00%
+100.00%
+Australia
+Sun Pharma ANZ Pty Ltd (Formerly known as Ranbaxy Australia
+Pty Ltd)
+77
+Ranbaxy Farmaceutica Ltda.
+100.00%
+80
+Egypt
+Basics GmbH
+83
+100.00%
+100.00%
+France
+Office Pharmaceutique Industriel Et Hospitalier
+Sun Pharma Egypt Limited LLC (Formerly known as Ranbaxy
+Egypt Ltd)
+82
+100.00%
+Egypt
+Rexcel Egypt LLC
+81
+100.00%
+100.00%
+100.00%
+7.75%
+United Arab Emirates
+India
+Letters of credit for imports
+42
+DISCLOSURES RELATING TO SHARE CAPITAL
+i
+Rights, preferences and restrictions attached to equity shares
+2,873.3
+1,715.2
+1,300.3
+2,362.0
+The equity shares of the Parent Company, having par value of 1 per share, rank pari passu in all respects including voting rights and
+entitlement to dividend.
+ii
+Reconciliation of the number of shares and amount outstanding at the beginning and at the end of
+reporting period
+Equity shares of * 1 each
+Opening balance
+Add: shares allotted to employees on exercise of
+employee stock options (excluding shares held by
+ESOP trust) (* : ₹ 62,365)
+Less: buy-back of shares (Refer note 65)
+Closing balance
+The movement of shares issued to ESOP Trust at face value is as follows:
+(7.5)
+2,399.3
+(7,500,000)
+2,399,260,815
+2,399.3
+2,406.6
+0.2
+2,399,323,180
+(Refer note z)
+2,406,605,118
+155,697
+62,365
+2,399,260,815
+* in Million
+Year ended March 31, 2017
+Number of Shares
+* in Million
+Year ended March 31, 2018
+Number of Shares
+2,399.3
+* 0.0
+IV) Investment related commitments
+III) Lease related commitments [Refer note 55]
+As at
+March 31, 2017
+6,089.7
+III) Legal proceedings
+126.0
+77.4
+Other matters - State Electricity Board, Punjab Land Preservation Act related matters etc.
+Note: Includes interest till date of demand, wherever applicable.
+171.0
+171.0
+The Company and/or its subsidiaries are involved in various legal proceedings including
+product liability, contracts, employment claims, anti-trust and other regulatory matters relating
+to conduct of its business. Most of these legal proceedings involve various complex issues
+on account of which, making a reliable estimate of the expected financial effect is not always
+attainable and involves significant uncertainties. To the extent that the Company concludes
+that a liability is probable and estimable based on the status of these cases, advice of the
+counsel, management assessment of the likely damages etc. the Company records a provision
+in the financial statements. The Company carries product liability insurance / is contractually
+indemnified by the manufacturer, for an amount it believes is sufficient for its needs. In respect
+of other claims, the Company believes, these claims do not constitute material litigation
+matters and with its meritorious defences the ultimate disposition of these matters are not
+expected to have material adverse effect on its Financial Statements.
+Footnote:
+715.4
+Fine imposed for anti-competitive settlement agreement by European Commission
+Octroi demand on account of rate difference
+16.7
+17.4
+Demand by JDGFT for import duty with respect to import alleged to be in excess of
+entitlement as per the Advanced Licence Scheme
+132.8
+3,488.2
+3,488.2
+830.7
+iv
+Future cash outflows in respect of the above matters are determinable only on receipt of
+judgements/decisions pending at various forums / authorities.
+2,850.6
+19,579.2
+Estimated amount of contracts remaining to be executed on capital account (net of advances)
+Derivative related commitments - forward foreign exchange contracts [Refer note 47(c)]
+II)
+1)
+March 31, 2018
+As at
+B) Guarantees given by the bankers on behalf of the Group
+* in Million
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+177
+2,250.5
+41 COMMITMENTS
+V
+vi
+Equity shares of * 1 each
+74.82%
+72.81%
+(Refer note f)
+Hungary
+(Refer note h)
+58
+United Kingdom
+3 Skyline LLC
+One Commerce Drive LLC
+United States of America
+74.82%
+United States of America
+74.82%
+72.81%
+72.81%
+59
+173
+Taro Hungary Intellectual Property Licensing Limited Liability
+Company
+57
+Taro Pharmaceuticals Europe B.V.
+54
+Taro Pharmaceuticals Ireland Ltd
+Netherlands
+Ireland
+74.82%
+72.81%
+56 Taro Pharmaceuticals (UK) Ltd.
+74.82%
+(Refer note x)
+55
+Taro International Ltd.
+Israel
+74.82%
+72.81%
+72.81%
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit,
+enjoyed by the Group
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Notes to the Consolidated Financial Statements
+1,035,581,955 (upto March 31, 2017: 1,035,581,955) equity shares of 1 each have been allotted as fully paid up bonus shares during
+the period of five years immediately preceding the date at which the Balance Sheet is prepared.
+0.0
+0.1
+(0.1)
+30,366
+(93,015)
+123,381
+334,956,764 (upto March 31, 2017: 334,956,764) equity shares of 1 each have been allotted, pursuant to scheme of amalgamation,
+without payment being received in cash during the period of five years immediately preceding the date at which the Balance Sheet is
+prepared.
+* in Million
+* (0.0)
+* 0.0
+30,366
+(30,366)
+* in Million
+Year ended March 31, 2018
+Number of Shares
+Opening balance (March 31, 2018 : * : * 30,366)
+Less: shares allotted by ESOP trust on exercise of
+employee stock options (March 31, 2018 : * : * 30,366)
+Closing balance (March 31, 2017: * 30,366)
+Year ended March 31, 2017
+Number of Shares
+PHARMA
+Refer note 58 for number of employee stock options against which equity shares are to be issued by the Company / ESOP Trust upon
+vesting and exercise of those stock options.
+178
+for the year ended March 31, 2018
+Particulars
+Country of Incorporation
+Proportion of ownership interest
+for the year ended
+61
+vii 7,500,000 (upto March 31, 2017: 7,500,000) equity shares of 1 each have been bought back during the period of five years
+immediately preceding the date at which the Balance Sheet is prepared. The shares bought back in the previous year were cancelled
+immediately. (Refer note 65)
+60 Taro Pharmaceutical Laboratories Inc.
+62 Taro Pharmaceutical India Private Limited
+63
+Alkaloida Sweden AB
+64
+72.81%
+74.82%
+Taro Pharmaceuticals Canada, Ltd.
+130.5
+V)
+23.3
+19.99%
+136 Medinstill Development LLC
+United States of America
+19.99%
+Dusa Pharmaceuticals, Inc.
+19.99%
+137 ALPS LLC
+United States of America
+19.99%
+19.99%
+138 Intact Pharmaceuticals LLC
+139 Intact Skin Care LLC
+United States of America
+19.99%
+19.99%
+United States of America
+19.99%
+19.99%
+72.81%
+74.82%
+81.87%
+March 31, 2017
+March 31, 2018
+83.21%
+Beneficial ownership
+19.99%
+Voting power
+b
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+175
+Following are the details of the Group's holding in Taro:
+United States of America
+135 Dr. Py Institute LLC
+19.99%
+36.90%
+36.90%
+India
+40.61%
+40.61%
+India
+India
+129 Composite Power Generation LLP
+130 Vintage Power Generation LLP
+128 Trumpcard Advisors and Finvest LLP
+14.58%
+11.69%
+United States of America
+28.76%
+28.76%
+Name of Subsidiary of Associates
+C
+39.41%
+131 Vento Power Generation LLP
+ESIC contribution on account of applicability
+United States of America
+134 HRE III LLC
+19.99%
+19.99%
+United States of America
+39.41%
+133 HRE II LLC
+19.99%
+United States of America
+132 HRE LLC
+40.55%
+40.55%
+India
+19.99%
+e
+19.99%
+Entities at Sr. No. 25 and 114 to 116 have been acquired
+during the year ended March 31, 2018.
+ab Significant Accounting Policies and other Notes to these
+Consolidated Financial Statements are intended to serve
+as a means of informative disclosure and a guide for
+better understanding of the consolidated position of the
+Group. Recognising this purpose, the Group has disclosed
+only such policies and notes from the individual financial
+statements which fairly represent the needed disclosures.
+Lack of homogeneity and other similar considerations made it
+desirable to exclude some of them, which in the opinion of the
+management, could be better viewed when referred from the
+individual financial statements.
+aa With effect from April 25, 2017 Insite Vision Ltd. has been
+dissolved.
+Fraizer Healthcare VII, L.P. and Versant Venture Capital V, L.P.
+were treated as associates till March 31, 2017 and are now
+being classified and measured as investments at fair value
+through profit and loss.
+Z
+Ranbaxy Europe Limited is under Liquidation.
+y
+40 CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
+Taro Pharmaceuticals Ireland Limited is under Liquidation.
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+176
+With effect from May 20, 2018 Sun Pharmaceuticals UK
+Limited has been dissolved.
+X
+W
+March 31, 2018
+A) Contingent liabilities
+In respect of entities at Sr. Nos. 4 to 8, 90, 106, 107, 108,
+109, 110, 112 and 119 the reporting date is as of December
+31, 2017 and different from the reporting date of the Parent
+Company. Adjustments have been made for significant
+transactions of these subsidiaries for the periods from January
+01, 2017 to March 31, 2017 and January 01, 2018 to March
+31, 2018, on the basis of their management accounts for the
+said periods.
+23.3
+Environment cess
+56,712.6
+45.7
+4,548.1
+2,290.4
+Excise duty on account of valuation / cenvat credit
+* in Million
+As at
+March 31, 2017
+59,274.1
+122.5
+1,147.6
+855.4
+Sales tax on account of rebate / classification
+Claims against the Group not acknowledged as debts
+Liabilities disputed - appeals filed with respect to:
+II)
+1)
+Income tax on account of disallowances / additions
+With effect from April 07, 2016 Perryton Wind Power LLC has
+been liquidated.
+As at
+With effect from August 01, 2017, Ranbaxy Pharmaceuticals,
+Inc. and Ranbaxy Laboratories, Inc. have been merged with Sun
+Pharmaceutical Industries Inc.
+With effect from March 02, 2017, Sun Pharmaceuticals Spain,
+S.L.U. has been liquidated.
+g
+Daiichi Sankyo (Thailand) Ltd.'s shares were sold as per
+agreement dated May 13, 2016.
+r
+Taro Pharmaceuticals (UK) Limited is under Liquidation.
+With effect from December 21, 2017 S & I Ophthalmic LLC has
+been dissolved.
+S
+q
+р
+With effect from June 19, 2017 MSD - Sun LLC is liquidated
+During the year 2016-17, Solrex Pharmaceuticals Company,
+a partnership firm was converted into company which is
+known as Sun Pharma Medisales Private Limited. The Board of
+Directors of the Company at their meeting held on November
+10, 2016 and the shareholders and unsecured creditors of
+the Company at their respective meetings held on June 20,
+2017 approved the proposed scheme of arrangement u/s 230
+to 232 of the Companies Act, 2013 for amalgamation of Sun
+Pharma Medisales Private Limited, Ranbaxy Drugs Limited,
+Gufic Pharma Limited and Vidyut Investments Limited into
+the Company with effect from April 01, 2017, the appointed
+date. On completion of all the formalities of the merger of the
+above companies with the Company, the said merger became
+effective September 08, 2017.
+n
+m
+Foundation for Disease Elimination and Control of India
+(FDEC), a wholly owned subsidiary incorporated in India on
+September 21, 2016 by the Company as part of its Corporate
+Social Responsibility (CSR) initiative. FDEC has entered into
+an MOU with Indian Council of Medical Research (ICMR) and
+Madhya Pradesh State Government to undertake the Mandla
+Malaria Elimination Demonstration Project with a goal to
+eliminate Malaria in the state. FDEC is a Section 8 company
+not considered for consolidation since it can apply its income
+for charitable purposes only and can raise funds/contribution
+independently.
+MSD-Sun FZ LLC has been deregistered with effect from
+September 14, 2015 having deregistration certificate dated
+December 25, 2016.
+h
+f
+With effect from February 16, 2017, Taro Hungary Intellectual
+Property Licensing Limited Liability Company has been
+liquidated.
+With effect from March 16, 2017, Thallion Pharmaceutical Inc.
+was acquired and merged with Taro Pharmaceuticals Inc.
+|
+V
+Books of accounts and other related records/documents of
+the overseas subsidiaries of the Zenotech Laboratories Limited
+were missing and due to non-availability of those records/
+information, Zenotech Laboratories Limited is unable to
+prepare consolidated accounts.
+With effect from February 22, 2017 Sirius Laboratories Inc. has
+been dissolved.
+With effect from August 16, 2016 Dusa Pharmaceuticals New
+York, Inc. has been dissolved.
+j
+k
+u
+With effect from July 27, 2017 Zenotech Laboratories Limited
+has ceased to be an associate and has become a subsidiary of
+Sun Pharmaceutical Industries Limited.
+Taro Pharmaceutical India Private Limited has been liquidated
+on April 04, 2017.
+i
+t
+With effect from April 01, 2017 vide certificate dated August
+09, 2017 Ocular Technologies SARL has been merged with Sun
+Pharma Switzerland Limited.
+179
+Financial liabilities
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+205,846.8
+Borrowings
+Trade/security deposits
+Trade payables
+Interest accrued
+Unpaid dividends
+Other financial liabilities
+Derivatives designated as hedges
+Payable for purchase of property, plant and equipment
+57,921.0
+Current maturities of long-term debt and finance lease obligations
+11,289.8
+Cash and cash equivalents
+1,901.7
+2.2
+Mandatorily measured:
+Margin money/ security against guarantees/ commitments
+Security deposits
+Bank balances other than Cash and cash equivalents
+Interest accrued on investments / balances with banks
+Refund due from Government authorities
+783.5
+Other financial assets
+Derivatives not designated as hedges
+Total
+760.9
+79,253.7
+20,040.1
+316.0
+2,079.4
+Mandatorily measured:
+Total
+Government securities - unquoted (* 10,000)
+Financial assets
+Fair value through
+profit or loss
+Fair value
+through other
+comprehensive
+income
+Amortised cost
+2,472.7
+293.2
+870.7
+560.1
+As at March 31, 2017
+0.0
+Bonds/debentures - quoted
+Government securities - quoted
+Mutual Funds - unquoted
+Others - unquoted
+2,078.7
+608.5
+1.0
+Loans to related parties
+Equity instruments - unquoted
+* in Million
+158,694.1
+35.8
+Investments
+Equity instruments - quoted
+* in Million
+As at March 31, 2018
+Fair value through
+profit or loss
+Fair value
+through other
+comprehensive
+income
+Amortised cost
+97,517.9
+6,334.8
+47,662.0
+344.6
+86.4
+151.3
+4,141.2
+35.8
+143.7
+143.7
+Derivatives not designated as hedges
+Bank deposits with more than 12 months maturity
+Terapia SA
+Trade receivables
+194,820,971
+8.1
+7.6
+182,437,880
+7.6
+7.6
+182,379,237
+8.1
+7.6
+106,329,652
+4.4
+Dilip Shantilal Shanghvi
+230,285,690
+Viditi Investment Pvt. Ltd.
+200,846,362
+Tejaskiran Pharmachem Industries Pvt. Ltd.
+6.1
+8.4
+200,846,362
+8.4
+Loans to employees/others
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+viii Equity shares held by each shareholder holding more than 5 percent equity shares in the Parent Company
+are as follows:
+Name of Shareholders
+As at March 31, 2018
+Number of
+As at March 31, 2017
+Number of
+% of Holding
+% of Holding
+Shares held
+Shares held
+9.6
+230,285,690
+9.6
+194,820,971
+23,339.0
+78,152.8
+Family Investment Pvt. Ltd.
+Quality Investments Pvt. Ltd.
+Equity instruments - quoted
+Equity instruments - unquoted
+Bonds/debentures - quoted
+Government securities - quoted
+Government securities - unquoted (* 10,000)
+4,394.0
+22.5
+Investments
+27,803.1
+326.3
+Mutual Funds - unquoted
+5,177.2
+Others - quoted
+25,397.6
+Others - unquoted
+5,306.6
+Loans to employees/others
+0.0
+Financial assets
+Amortised cost
+income
+182,379,237
+Life Insurance Corporation of India*
+145,302,877
+*Shareholding has been consolidated on the basis of PAN as per SEBI circular dated December 19, 2017
+43 RESEARCH AND DEVELOPMENT EXPENDITURE
+Revenue, net (excluding depreciation) [Refer note 38]
+Capital
+Total
+44 CATEGORIES OF FINANCIAL INSTRUMENTS
+* in Million
+Year ended
+March 31, 2018
+20,520.9
+1,819.4
+22,340.3
+Year ended
+March 31, 2017
+21,024.3
+1,679.3
+22,703.6
+* in Million
+As at March 31, 2018
+Fair value through
+profit or loss
+Fair value
+through other
+comprehensive
+182,437,880
+Trade receivables
+2,455.9
+Cash and cash equivalents
+NIS
+USD 52.2
+USD 0.7
+Forward contracts
+USD
+Sell
+CAD
+USD 53.4
+USD 2.1
+Forward contracts
+USD
+Sell
+HUF
+USD 4.5
+USD 5.9
+Forward contracts
+RUB
+Sell
+Sell
+USD
+USD 150.0
+Currency cum interest rate swaps
+USD
+Buy
+INR
+USD 50.0
+USD 50.0
+Currency options
+USD
+Buy
+INR
+USD 100.0
+USD 100.0
+Interest rate swaps
+USD
+Buy
+INR
+USD 150.0
+Forward contracts
+RON
+RON 4.8
+RON 11.5
+119.0
+As at
+March 31, 2018
+* in Million
+As at
+March 31, 2017
+23,564.4
+427.1
+23,273.5
+425.3
+125.5
+12,311.0
+12,295.6
+17,361.5
+17,295.8
+359.3
+358.9
+362.1
+311.9
+290.0
+435.8
+Insite Vision Incorporated
+Ranbaxy Pharmaceuticals, Inc. [Refer note 39(v)]
+Basics GmbH
+Ranbaxy Farmaceutica Ltda.
+Interest rate risk
+The Group has loan facilities on floating interest rate, which exposes the Group to risk of changes in interest rates. The Group monitors the
+interest rate movement and manages the interest rate risk by evaluating interest rate swaps etc. based on the market / risk perception.
+For the year ended March 31, 2018 and March 31, 2017, every 50 basis point decrease in the floating interest rate component applicable to
+its loans and borrowings would increase the Group's profit before tax by approximately 162.2 Million and 196.2 Million respectively. A 50
+basis point increase in floating interest rate would have led to an equal but opposite effect.
+Commodity rate risk
+Exposure to market risk with respect to commodity prices primarily arises from the Group's purchases and sales of active pharmaceutical
+ingredients, including the raw material components for such active pharmaceutical ingredients. These are commodity products, whose prices
+may fluctuate significantly over short periods of time. The prices of the Group's raw materials generally fluctuate in line with commodity
+cycles, although the prices of raw materials used in the Group's active pharmaceutical ingredients business are generally more volatile. Cost
+of raw materials forms the largest portion of the Group's cost of revenues. Commodity price risk exposure is evaluated and managed through
+operating procedures and sourcing policies. As of March 31, 2018, the Group had not entered into any material derivative contracts to hedge
+exposure to fluctuations in commodity prices.
+186
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+USD 3.6
+Notes to the Consolidated Financial Statements
+48 GOODWILL (NET):
+Goodwill acquired in business combination is allocated, at acquisition, to the cash generating units (CGUs) that are expected to benefit from
+that business combination. The carrying amount of goodwill has been allocated as follows:
+i)
+Goodwill in respect of:
+Sun Pharmaceutical Industries, Inc. [Refer note 39(v)]
+Sun Farmaceutica do Brasil Ltda.
+Sun Pharma Japan Ltd.
+Taro Pharmaceutical Industries Ltd.
+for the year ended March 31, 2018
+435.3
+USD
+CAD
+The Group is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in US Dollar, Euro, South
+African Rand and Russian Rouble and foreign currency debt is primarily in US Dollar. The Group uses foreign currency forward contracts,
+foreign currency option contracts and currency swap contracts (collectively, "derivatives") to mitigate its risk of changes in foreign currency
+exchange rates. The counterparty for these contracts is generally a bank or a financial institution.
+Hedges of highly probable forecasted transactions
+The Group designates its derivative contracts that hedge foreign exchange risk associated with its highly probable forecasted transactions
+as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recorded as in other comprehensive
+income, and re-classified in the income statement as revenue in the period corresponding to the occurrence of the forecasted transactions.
+The ineffective portion of such cash flow hedges is immediately recorded in the consolidated statement of profit and loss.
+185
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Group has recorded a loss of 75.7 Million for the year
+ended March 2018 and gain of 46.2 Million for year ended March 31, 2017 in other comprehensive income. The Group also recorded as a
+component of revenue, gain of * 47.6 Million for year ended March 31, 2018 and loss of 559.7 Million for year ended March 31, 2017 due
+to occurrence of forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and liabilities in foreign
+currencies, and for which no hedge accounting is applied, are recognised in the consolidated statement of profit and loss. The changes in
+fair value of the forward contracts and option contracts, as well as the foreign exchange gains and losses relating to the monetary items, are
+recognised in the consolidated statement of profit and loss.
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts:
+Amount in Million
+As at
+Currency
+Buy / Sell
+Cross Currency
+March 31, 2018
+Derivative contracts
+As at
+March 31, 2017
+c)
+For the years ended March 31, 2018 and March 31, 2017 every 5% strengthening in the exchange rate between the Indian Rupee and the
+respective major currencies for the above mentioned financial assets/liabilities would increase Group's profit and equity by approximately
+* 1,077.0 Million and 1,054.5 Million. A 5% weakening of the Indian Rupee and the respective major currencies would lead to an equal but
+opposite effect.
+24,321.3
+Borrowings
+38,296.9
+38,296.9
+Trade payables
+4,990.1
+43,287.0
+1,386.1
+1,386.1
+0.3
+161.4
+298.1
+6,836.0
+0.3
+161.4
+298.1
+45,132.9
+b)
+Sensitivity
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end
+of the reporting period does not reflect the exposure during the year.
+Derivatives designated as hedges
+Forward contracts
+ZAR
+Forward contracts
+RUB
+Sell
+USD
+USD 5.0
+USD 12.0
+Forward contracts
+GBP
+Sell
+USD
+USD 2.8
+Forward contracts
+ZAR
+Sell
+USD
+USD 21.0
+Forward contracts
+USD 1.3
+USD 8.2
+USD
+Sell
+Sell
+Forward Contracts
+USD
+Bank deposits with more than 12 months maturity
+Security deposits
+USD
+USD 22.0
+JPY
+USD 31.7
+Sell
+USD 19.5
+Forward contracts
+USD
+Buy
+INR
+USD 18.2
+USD 22.5
+Forward contracts
+AUD
+Derivatives not designated as hedges
+Zenotech Laboratories Limited
+595.4
+Sun Pharmaceutical Industries Limited [Refer note 39(n)]
+12,115.7
+Opening balance
+April 01, 2017
+Profit/(loss)
+movement during
+the Year *
+Other
+comprehensive
+in Million
+Closing balance
+March 31, 2018
+income movement
+during the Year *
+Deferred tax assets
+Expenses claimed for tax purpose on payment basis
+7,991.6
+(3,058.4)
+(229.9)
+4,703.3
+(595.7)
+Unabsorbed depreciation / carried forward losses
+824.9
+8,451.9
+2,510.0
+Effect of income which is taxed at special rates
+(2,236.0)
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+6,392.9
+Effect of difference between Indian and foreign tax rates and non taxable subsidiaries
+Effect of deferred tax expense on undistributed profits
+Effect of deferred tax expense exceptional item (Refer note 74)
+Tax payable under MAT
+Others
+Income tax expense recognised in consolidated statement of profit and loss
+51 DEFERRED TAX
+i) Deferred tax assets (Net)
+(3,536.9)
+(1,943.3)
+5,193.2
+(12,658.7)
+582.3
+415.3
+2,544.5
+2,100.0
+6,031.5
+213.8
+6,245.3
+28,143.3
+Less: Deferred tax liabilities
+Difference between written down value of property,
+plant and equipment and capital work-in-progress as
+per books of accounts and income tax
+4,306.9
+820.4
+5,127.3
+Others
+177.8
+4,484.7
+24,928.2
+882.6
+1,703.0
+(2,742.7)
+17.8
+1,078.2
+17.8
+6,205.5
+(247.7)
+21,937.8
+188
+(229.9)
+(1,039.7)
+29,412.9
+7,517.0
+Inventory and other related items
+3,569.6
+(1,696.0)
+1,873.6
+Intangible assets
+Others
+2,851.0
+1,015.4
+(295.1)
+3,866.4
+2,485.5
+3,937.7
+21,895.9
+(1,039.7)
+(229.9)
+20,626.3
+MAT credit entitlement
+7,517.0
+1,452.2
+(16.6)
+(2,959.5)
+(1,690.0)
+1.4
+1.4
+Sun Pharmaceutical Industries Limited [Refer note 39(n)]
+Ranbaxy Drugs Limited
+27.5
+27.5
+Ranbaxy Malaysia SDN. BHD.
+56.1
+56.1
+Total (B)
+Total (A-B)
+1,404.2
+56,067.1
+1,237.5
+55,362.2
+ii)
+Below is the reconciliation of the carrying amount of goodwill:
+Opening balance
+Add: Due to acquisitions during the year
+Ranbaxy Nigeria Limited
+1,152.5
+1,319.2
+Alkaloida Chemical Company Zrt.
+1,677.4
+Sun Pharma Medisales Private Limited (Formerly known as Solrex Pharmaceuticals
+Company) [Refer note 39(n)]
+1,208.0
+Ranbaxy South Africa (Pty) Ltd
+JSC Biosintez
+3.8
+247.0
+3.4
+112.6
+Add/ (less): Foreign currency translation difference
+Closing balance
+Sun Pharmaceutical Medicare Limited
+1.0
+469.4
+57,471.3
+56,599.7
+Gufic Pharma Limited [Refer note 39(n)]
+Total (A)
+Less:
+Capital reserve in respect of:
+1.0
+457.5
+Year ended
+March 31, 2018
+109.5
+Income tax expense calculated at corporate tax rate
+34,789.8
+90,478.7
+34.608%
+34.608%
+12,040.0
+31,312.9
+Effect of deduction claimed under chapter VI of Income Tax Act, 1961
+(9,009.3)
+(8,487.2)
+Effect of income that is exempt from tax
+(76.4)
+(118.5)
+Effect of expenses that are not deductible in determining taxable profit
+122.5
+152.3
+Incremental deduction allowed on account of research and development costs and other allowances
+Investment allowance deduction
+Income tax rate in India (%)
+Profit before tax
+Reconciliation of tax expense
+March 31, 2017
+56,067.1
+* in Million
+Year ended
+March 31, 2017
+56,347.4
+113.6
+(1,098.8)
+55,362.2
+The carrying amount of goodwill are stated above. The recoverable amounts have been determined based on value in use calculations
+which uses cash flow projections covering generally a period of five years (which are based on key assumptions such as margins, expected
+growth rates based on past experience and Management's expectations/extrapolation of normal increase/ steady terminal growth rate)
+and appropriate discount rates that reflects current market assessments of time value of money and risks specific to these investments. The
+cash flow projections included estimates for five years developed using internal forecasts and terminal growth rate thereafter. The planning
+horizon reflects the assumptions for short to mid-term market developments. The average growth rate used in extrapolating cash flows
+beyond the planning period ranged from -8% to 2% for the year ended March 31, 2018, March 31, 2017. Discount rate reflects the current
+market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated on the weighted average cost of capital
+for respective CGU or group of CGUs. Discount rate used ranged from 0.7% to 7.1% for the year ended March 31, 2018, March 31, 2017.
+The management believes that any reasonable possible change in key assumptions on which recoverable amount is based is not expected
+to cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit. However, based on the
+impairment assessment, the Management has determined that in respect of certain subsidiaries, an impairment loss considering the above
+criteria/ factors aggregating to Nil (March 31, 2017: Nil) in the value of goodwill has been recognised.
+187
+55,362.2
+595.4
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+49 DISCLOSURES MANDATED BY THE COMPANIES ACT, 2013 SCHEDULE III PART II BY WAY OF
+ADDITIONAL INFORMATION IS GIVEN IN ANNEXURE 'A'.
+50 INCOME TAXES
+Tax Reconciliation
+Year ended
+March 31, 2018
+* in Million
+Year ended
+PHARMA
+5,034.1
+Buy
+2,817.7
+Financial liabilities
+Derivatives not designated as hedges
+217.4
+Derivatives designated as hedges
+26.6
+244.0
+181
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement
+date.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or
+indirectly.
+2,079.4
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of
+unquoted investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents
+estimate of fair value within that range.
+The investments which are fair valued through other comprehensive income, are not held for trading. Instead, they are held for medium or
+long-term strategic purpose. Upon the application of Ind AS 109, the Group has chosen to designate these investments in equity instruments
+as at fair value through other comprehensive income as the management believe that this provides a more meaningful presentation for
+medium or long-term strategic investments, than reflecting changes in fair value immediately in consolidated statement of profit and loss.
+There were no transfers between Level 1 and 2 in the periods.
+901.7
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates their
+fair value.
+1,255.4
+67.1
+1,322.5
+Derivatives designated as hedges
+* in Million
+Level 1
+As at March 31, 2017
+Level 2
+Level 3
+Equity instruments - quoted
+2,472.7
+Equity instruments - unquoted
+293.2
+Bonds/debentures - quoted
+870.7
+Government securities - quoted
+560.1
+Mutual Funds - unquoted
+2,078.7
+Others unquoted
+608.5
+Derivatives not designated as hedges
+5,982.2
+Reconciliation of Level 3 fair value measurements
+Unlisted shares valued at fair value
+Balance at the beginning of the year
+The Group monitors capital on the basis of the carrying amount of debt less cash and cash equivalents, bank balances (excluding
+earmarked balances with banks) and current investments as presented on the face of the consolidated financial statements. The Group's
+objective for capital management is to maintain an optimum overall financial structure.
+As at
+March 31, 2018
+Debt (includes non-current borrowings, current borrowings, current maturities of finance lease
+obligations and current maturities of long-term debt)
+103,852.7
+* in Million
+As at
+March 31, 2017
+98,317.7
+Less: cash and cash equivalents, bank balances (excluding earmarked balances with banks) and
+current investments
+139,770.2
+153,510.7
+Net debt
+Total equity, including reserves
+Net debt to total equity ratio
+(35,917.5)
+419,847.2
+(55,193.0)
+404,305.3
+N.A.
+N.A.
+182
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+901.7
+22.5
+(6.8)
+Purchases
+Foreign currency translation difference
+Others including disposal / settlements / charged to consolidated statement of profit and loss
+(Refer note 39 (z))
+Balance at the end of the year
+46 CAPITAL MANAGEMENT
+a)
+The Group's capital management objectives are:
+- to ensure the Group's ability to continue as a going concern; and
+Investments
+* in Million
+Year ended
+March 31, 2017
+901.7
+544.1
+7.4
+462.8
+(98.4)
+(886.6)
+Year ended
+March 31, 2018
+ANNUAL REPORT 2017-18
+Financial assets
+Derivatives not designated as hedges
+Derivatives designated as hedges
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+Financial liabilities
+Borrowings
+Current maturities of long-term debt and finance lease obligations
+Trade payables
+Interest accrued
+Unpaid dividends
+Trade/security deposits
+Payable for purchase of property, plant and equipment
+Derivatives designated as hedges
+Other financial liabilities
+Mandatorily measured :
+Derivatives not designated as hedges
+Total
+241,711.6
+* in Million
+3,970.6
+1,666.0
+Bank balances other than Cash and cash equivalents
+Interest accrued on investments / balances with banks
+Interest accrued on investments loans
+Derivatives designated as hedges
+Other financial assets
+Mandatorily measured:
+Total
+Derivatives not designated as hedges
+180
+67.1
+454.0
+10,434.9
+72,026.1
+4,589.2
+532.9
+86,628.0
+64,780.4
+599.9
+0.2
+1,255.4
+4,235.8
+As at March 31, 2017
+Fair value through
+profit or loss
+Fair value
+through other
+comprehensive
+Equity instruments - quoted
+Equity instruments - unquoted
+4,394.0
+22.5
+Bonds/debentures - quoted
+27,803.1
+Government securities - quoted
+326.3
+Mutual Funds - unquoted
+5,177.2
+Others - quoted
+25,397.6
+Others unquoted
+Derivatives not designated as hedges
+63,098.2
+5,306.6
+783.5
+6,090.1
+22.5
+Financial liabilities
+Investments
+Financial assets
+Level 3
+As at March 31, 2018
+Level 2
+income
+Amortised cost
+45 FAIR VALUE HIERARCHY
+Financial assets and liabilities measured at fair value on a recurring basis
+80,910.0
+17,407.7
+43,953.9
+384.1
+143.7
+35.8
+179.5
+76.6
+1,940.7
+26.6
+2,931.8
+217.4
+217.4
+26.6
+147,784.2
+* in Million
+Level 1
+179.4
+CONSOLIDATED FINANCIAL STATEMENTS
+Level 3 inputs are unobservable inputs for the asset or liability.
+for the year ended March 31, 2018
+for the year ended March 31, 2018
+Foreign exchange risk
+The Group's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in US Dollar, Euro,
+South African Rand and Russian Rouble) and foreign currency borrowings (primarily in US Dollar). As a result, if the value of the Indian rupee
+appreciates relative to these foreign currencies, the Group's revenues and expenses measured in Indian rupees may decrease or increase and
+vice-versa. The exchange rate between the Indian rupee and these foreign currencies has changed substantially in recent periods and may
+continue to fluctuate substantially in the future. Consequently, the Group uses both derivative and non-derivative financial instruments, such
+as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate the risk
+of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognised assets and liabilities.
+a) Significant foreign currency risk exposure relating to trade receivables, cash and cash equivalents, borrowings and trade
+payables
+* in Million
+US Dollar
+Euro
+As at March 31, 2018
+Russian Rouble South African Rand
+Trade receivables
+11,716.2
+3,600.3
+Cash and cash
+253.6
+549.9
+2,096.4
+114.0
+5,759.4
+Japanese Yen
+2,058.2
+Total
+25,230.5
+Notes to the Consolidated Financial Statements
+3.2
+CONSOLIDATED FINANCIAL STATEMENTS
+184
+Other financial liabilities
+Derivatives
+Market risk
+Less than 1 year
+1-3 years More than 3 years
+Total As at
+March 31, 2017
+84,178.8
+12,881.4
+1,482.4
+43,953.9
+4,464.6
+132,597.3
+244.0
+98,542.6
+43,953.9
+1,048.0
+13,929.4
+5,512.6
+1,482.4
+148,009.1
+244.0
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and
+prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as
+a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all
+foreign currency receivables and payables and all short term and long-term debt. The Group is exposed to market risk primarily related to
+foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Group's exposure to market risk is a function
+of investing and borrowing activities and revenue generating and operating activities in foreign currencies.
+ANNUAL REPORT 2017-18
+920.7
+equivalents
+11,969.8
+US Dollar
+Trade receivables
+12,797.0
+Euro
+1,994.9
+As at March 31, 2017
+Russian Rouble
+Cash and cash
+1,135.6
+822.8
+1,727.1
+352.3
+South African Rand
+5,034.1
+Japanese Yen
+8.3
+Total
+21,561.4
+449.2
+2,759.9
+equivalents
+13,932.6
+* in Million
+47,692.1
+418.1
+12,005.4
+4,150.2
+2,210.4
+5,759.4
+2,061.4
+Notes to the Consolidated Financial Statements
+Borrowings
+34,077.3
+1,609.4
+Trade payables
+35,686.7
+8,620.1
+2,778.9
+3.0
+42,697.4
+4,388.3
+3.0
+185.3
+185.3
+418.1
+Trade payables
+Borrowings
+26,151.2
+* in Million
+The Group has used expected credit loss (ECL) model for assessing the impairment loss. For this purpose, the Group uses a provision
+matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and
+historical data of credit losses from various customers.
+* in Million
+As at
+As at
+March 31, 2018
+March 31, 2017
+Financial assets for which loss allowances is measured using the expected credit loss
+Trade receivables
+less than 180 days
+Total
+180 - 365 days
+beyond 365 days
+75,974.0
+2,781.2
+2,540.5
+69,889.0
+1,729.0
+2,518.0
+81,295.7
+74,136.0
+Trade receivables
+183
+The Group limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good
+credit rating. The Group does not expect significant any losses from non-performance by these counter-parties, and does not have any
+significant concentration of exposures to specific industry sectors or specific country risks.
+Credit risk
+Dividend on equity shares paid during the year
+b)
+Non derivative
+Dividend on equity shares
+Final dividend for the year ended March 31, 2017 of 3.5 (year ended March 31, 2016:
+1.0) per fully paid share
+Dividend distribution tax on above
+Dividends not recognised at the end of the reporting period
+Year ended
+March 31, 2018
+7,977.4
+1,624.0
+* in Million
+Year ended
+March 31, 2017
+2,406.8
+490.0
+The Board of Directors at it's meeting held on May 25, 2018 have recommended payment of final dividend of 2 per share of face value of
+* 1 each for the year ended March 31, 2018. The same amounts to ₹ 4,798.7 Million.
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and hence not recognised as liability.
+47 FINANCIAL RISK MANAGEMENT
+The Group's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Group's risk
+management assessment and policies and processes are established to identify and analyse the risks faced by the Group, to set
+appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies
+and processes are reviewed regularly to reflect changes in market conditions and the Group's activities.
+Credit risk is the risk of financial loss to the Group, if a customer or counterparty to a financial instrument fails to meet its contractual
+obligations and arises principally from the Group's receivables from customers, loans and investments. Credit risk is managed through
+credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Group grants
+credit terms in the normal course of business.
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Investments
+Notes to the Consolidated Financial Statements
+Borrowings
+Trade payables
+Other financial liabilities
+Derivatives
+Less than 1 year
+1-3 years More than 3 years
+* in Million
+Total As at
+March 31, 2018
+13,796.2
+Non derivative
+3,936.8
+104,776.5
+47,662.0
+316.5
+14,112.7
+7,179.4
+3,936.8
+PHARMA
+159,617.9
+The table below provides details regarding the contractual maturities of undiscounted significant financial liabilities as at March 31, 2017:
+179.5
+47,662.0
+6,862.9
+141,568.4
+179.5
+The table below provides details regarding the contractual maturities of undiscounted significant financial liabilities as at March 31, 2018:
+87,043.5
+2,109.9
+* in Million
+for the year ended March 31, 2018
+Movement in the expected credit loss allowance on trade receivables
+Balance at the beginning of the year
+Addition
+Recoveries
+1,358.0
+(325.0)
+The Group had unutilised working capital lines from banks of 47,081.4 Million as on March 31, 2018, ₹ 62,162.2 Million as on
+March 31, 2017.
+Balance at the end of the year
+3,142.9
+Other than trade receivables, the Group has no significant class of financial assets that is past due but not impaired. The Group has
+recognised an allowance of 4.5 Million (March 31, 2017: 732.2 Million) against a past due loan including interest.
+1,955.7
+318.1
+(163.9)
+2,109.9
+Liquidity risk
+Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group manages its liquidity
+risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
+conditions, without incurring unacceptable losses or risk to the Group's reputation.
+Year ended
+March 31, 2017
+Year ended
+March 31, 2018
+3-6%
+13.1
+15-19
+4.6%
+4.5%
+12-16
+1-4%
+4.7%
+13.7
+2.0%
+23-27
+3.9%
+20.7
+0-4%
+85-89
+84.8
+1-4%
+24-28
+753.2
+21.5
+1-4%
+5.8%
+CAGR
+2-5%
+4.4%
+CAGR
+2013-2017
+2-5%
+154.4
+2022
+2017
+2018-2022
+4-7%
+466.6
+N
+2013-2017
+CAGR
+7.3%
+170-200
+(US$ Billion)
+Chart 6 EU5 pharmaceutical spending and growth
+The CAGR for the next five years for EU5 markets is estimated at
+1-4%, with overall spending in these markets likely to escalate from
+US$ 154.4 Billion in 2017 to US$ 170-200 Billion in 2022. Spending
+will be primarily driven by the ageing population of countries and
+increased incidence of chronic ailments coupled with increasing
+adoption of specialty medicines.
+Europe (EU5)
+585-615
+Chart 5 US pharmaceutical spending and growth (US$ Billion)
+The US pharmaceutical market is estimated to grow by 4-7% CAGR
+from US$ 466.6 Billion in 2017 to US$ 585-615 Billion in 2022. The
+gains from a free-market pricing will continue to be partly offset by
+price rebates negotiated by payers. Patent expiry and subsequent
+loss of brand exclusivity will continue to aggravate the situation,
+whereas price increases and introduction of new specialty medicines
+will drive the spending growth.
+US
+915-945
+29-33
+Table 3 Pharmaceutical spending and growth in developed markets²
+Region/Country
+25.7
+Total
+Australia
+South Korea
+Canada
+Japan
+Spain
+UK
+Italy
+France
+Germany
+EU5
+US
+Pharmaceutical spending in developed markets is estimated to grow
+at 2-5% CAGR from US$ 753.2 Billion in 2017 to US$ 915-945 Billion
+in 2022. The US will continue to be the key contributor of the growth
+in developed markets. In other such markets, where access and costs
+are mostly managed by single payers growth will be sluggish.
+Developed markets¹
+The share of specialty medicines in pharmerging markets has not
+grown much over the preceding 10 years. This is primarily due
+to the higher proportion of out-of-pocket funding by patients in
+these countries, which limits affordability of higher priced specialty
+medicines.
+In the US and EU5 markets, the contribution of specialty medicines
+to overall pharmaceutical spending has almost doubled over the
+preceding 10 years. This trend is likely to continue. While specialty
+medicines are more expensive than traditional therapies, the
+availability of insurance funding is helping in making them affordable
+to the population of these countries.
+In the previous decade, new medications have witnessed a gradual and
+continuous shift towards specialty medicines (defined as those that treat
+chronic, complex or rare conditions). The share of specialty medicines in
+global spend in 2017 stood at 32%, up from 19% in 2007.
+Specialty medicines¹
+MANAGEMENT DISCUSSION AND ANALYSIS
+ANNUAL REPORT 2017-18
+1-4%
+(US$ Billion)
+6.9%
+2017
+2022
+2-5%
+34-38
+5.5%
+29.0
+0-3%
+36-40
+1.3%
+33.1
+2-5%
+51-61
+4.9%
+45.1
+1-4%
+170-200
+4.4%
+154.4
+4-7%
+585-615
+7.3%
+466.6
+2018-22 CAGR
+2013-17 CAGR
+CAGR
+Geriatric healthcare solutions, biopharmaceutical sector growth and
+advancements in API manufacturing will be the key drivers for the API
+2017
+7%
+FY13-18 revenue CAGR
+561
+Cumulative ANDAs filed
+As on 31st March, 2018
+422
+Cumulative ANDAS approved
+39
+Cumulative NDA/BLA approved
+Sun Pharma is the fifth largest specialty generics pharmaceutical
+company in the US market with presence across generics, specialty,
+branded and OTC segments. Its primary focus areas include CNS,
+dermatology, cardiology, oncology and ophthalmics, among others.
+It has integrated manufacturing facilities with the capability of
+manufacturing products, both onshore and offshore, across a variety
+of dosage forms including liquids, creams, gels, sprays, injectables,
+tablets, capsules and drug-device combinations. The Company's
+comprehensive portfolio includes 561 ANDAs and 42 NDAs filed and
+422 ANDAs and 39 NDAs approved across multiple therapies.
+ANDA
+pipeline
+Sun Pharma had 139 ANDAs and 3 NDAs pending USFDA approval as of 31 March 2018. This pipeline
+includes a combination of complex generics, First-to-File (FTF) opportunities and normal generics.
+US business milestones
+FY18
+FY17
+FY16
+FY15
+FY14
+FY13
+FY10
+FY98-FY10
+FY98
+Progress in FY18
+• Launched Odomzo in the US
+• Launched Generic Coreg CRⓇ in the US
+• Acceptance and approval for ILUMYA™ (tildrakizumab) in the US
+• Filed NDA for OTX-101 with USFDA
+• Acquired Ocular Technologies - giving access to OTX-101, a product for treating dry eyes
+• Launched BromSite - Sun Pharma's first specialty ophthalmic product - in the US
+• Acquired Odomzo - branded oncology product from Novartis
+Revenues for FY18
+• Acquired InSite vision to strengthen the specialty ophthalmic portfolio
+*87,466 Mn
+Revenue contribution
+•
+In May 2017, the Company received the U.S. Food and Drug
+Administration (USFDA) acceptance of the Biologics Licence
+Application (BLA) for ILUMYA™. The USFDA filing acceptance
+followed the acceptance of the regulatory filing of ILUMYA™ by the
+European Medicines Agency (EMA) in March 2017. ILUMYA™ is
+an IL-23p19 inhibitor approved for the treatment of moderate-to-
+severe plaque psoriasis in the US. The BLA filing for ILUMYA™ with
+the USFDA was based on two pivotal Phase III trials (reSURFACE
+1 and 2), which included over 1,800 patients across more than
+200 clinical trial sites, including some patients who have been
+treated with ILUMYATM for up to three-and-a-half years. Data from
+these trials were presented at the 2017 American Academy of
+Dermatology (AAD) Annual Meeting and previously presented at
+the 25th European Academy of Dermatology and Venereology
+Congress. Subsequently, in March 2018, Sun Pharma announced
+USFDA approval for ILUMYAT (tildrakizumab-asmn) to treat adults
+with moderate-to-severe plaque psoriasis who are candidates for
+systemic therapy or phototherapy.
+In June 2017, the Company received final approval from USFDA for
+its Abbreviated New Drug Application (ANDA) for generic version of
+Zetia® (ezetimibe) Tablets 10mg. These generic ezetimibe tablets
+are therapeutic equivalents of Merck's Zetia® tablets. According
+to IQVIA, ezetimibe tablets had annual sales of approximately
+US$ 2.7 Billion in the US for the 12 months ended April 2017.
+In June 2017, Sun Pharma in partnership with The National
+Institute of Virology (NIV), Pune, an institution of the Indian
+Council of Medical Research, Department of Health Research,
+Ministry of Health and Family Welfare, New Delhi, announced
+that they have signed an agreement for testing phyto-
+pharmaceutical, biologic and chemical entities developed by
+Sun Pharma against zika, chikungunya and dengue viruses. Sun
+Pharma will provide drug molecules to NIV for testing against zika,
+chikungunya and dengue in model systems. Candidate molecules
+with encouraging data will then be taken forward for commercial
+development. Sun Pharma and NIV aim to promote discovery
+sciences, translational health research and development of
+medical products, which is in sync with the direction provided by
+the Government of India's 'Make In India' initiative. Sun Pharma's
+agreement with NIV follows its MoU with the Indian Council of
+Medical Research (ICMR) for conducting joint scientific research
+and innovation for testing of drugs, biosimilars and vaccines for
+disease control and elimination programmes.
+In July, 2017, Sun Pharma and Samsung BioLogics announced
+a strategic long-term manufacturing agreement for ILUMYA™.
+The agreement was entered into by Sun Pharma's wholly-owned
+subsidiary and Samsung BioLogics. According to the agreement,
+Sun Pharma has appointed Samsung BioLogics to manufacture
+future supplies of ILUMYA.
+In September 2017, Sun Pharma announced that one of its wholly-
+owned subsidiaries has received approval from the USFDA for
+a new label for OdomzoⓇ (sonidegib), an oral hedgehog inhibitor
+to treat patients with locally advanced basal cell carcinoma
+(laBCC) that has recurred following surgery or radiation therapy,
+or those who are not candidates for surgery or radiation therapy.
+OdomzoⓇ was approved by the USFDA in July 2015, based on
+•
+•
+12-month follow-up results from the pivotal Phase II Basal Cell
+Carcinoma Outcomes with LDE225 Treatment (BOLT) clinical trial,
+a multicentre, double-blind study involving 194 patients with laBCC
+and 36 patients with metastatic basal cell carcinoma (mBCC). The
+new label incorporates long-term data from the 30-month analysis
+of BOLT trial, in which OdomzoⓇ continued to show sustained
+durable tumour response of 26 months with no new safety
+concerns.
+In October 2017, Sun Pharma announced that one of its wholly-
+owned subsidiaries has received final approval from the USFDA
+for its ANDA for generic version of Coreg CR®, (carvedilol
+phosphate) extended release capsules, 10mg, 20mg, 40mg and
+80mg, which are therapeutic equivalents of GSK's Coreg CRⓇ
+extended release capsules. As per IQVIA, Coreg CRⓇ had annual
+sales of approximately US$ 208 Million in the US for the 12
+months ended August 2017.
+In December 27, 2017, the Company announced that the USFDA has
+accepted a New Drug Application (NDA), filed by its wholly-owned
+subsidiary, for OTX-101 (cyclosporine A, ophthalmic solution) 0.09%,
+a novel nanomicellar formulation of cyclosporine A 0.09% in a clear,
+preservative-free aqueous solution. OTX-101 is currently under
+review for approval by the USFDA.
+In January 2018, Sun Pharma announced that its wholly-
+owned subsidiaries have reached an agreement with Ironwood
+Pharmaceuticals, Inc. and Allergan plc. to resolve the patent litigation
+regarding submission of an ANDA for a generic version of LinzessⓇ
+(Linaclotide capsules) in the US. Pursuant to the terms of the
+settlement. Sun Pharma's wholly owned subsidiaries will be eligible
+to market a generic version of Linzess® in the United States beginning
+01 February, 2031, (subject to USFDA approval) or earlier under
+certain circumstances.
+In February 2018, Sun Pharma's Halol facility underwent an
+inspection by the USFDA. Post the closure of the inspection, the
+USFDA issued the Form-483 to the facility citing three deviations.
+Sun Pharma filed its response to the USFDA in March 2018, citing
+proposed measures to address the deviations. Subsequently in June
+2018, the USFDA issued the establishment inspection report (EIR)
+for Halol, thus clearing the facility.
+In February 2018, Sun Pharma Science Foundation, a non-profit
+organisation announced the Sun Pharma Science Awards to Indian
+scientists for their outstanding work and exemplary contribution to
+medical research. The awards were presented in two categories:
+•
+The Sun Pharma Research Awards for outstanding scientists.
+Sun Pharma Science Scholar Awards for young researchers.
+The winners for both these awards are identified in two
+sub-categories:
+• Medical Sciences
+• Pharmaceutical Sciences
+An eminent jury panel comprising well-known scientists from India
+selected the winners. These awards are presented annually to Indian
+scientists and young researchers working in India and abroad.
+16
+ANNUAL REPORT 2017-18
+MANAGEMENT DISCUSSION AND ANALYSIS
+FY19 outlook and guidance
+The US generics industry continues to face pricing pressure driven
+by increasing competitive intensity and customer consolidation.
+Despite these adverse dynamics, the Company expects low double-
+digit growth in consolidated revenues for FY19.
+Sun Pharma continues to invest in enhancing its global specialty and
+complex generics pipeline. Investments will also continue for setting
+Business segment review
+34%
+up the requisite front-end capabilities for the specialty business in
+the US as well as on clinical trials for some of the specialty products.
+These investments may not have commensurate revenues in FY19
+but are likely to drive growth in the longer-term. The consolidated
+R&D investments for FY19 will be about 8-9% of consolidated
+revenues. The Company expects a gradually increasing tax rate over
+the next few years.
+.
+• Expanded presence in the US with the addition of Ranbaxy's US business
+• Acquired DUSA, marking entry into the specialty dermatology market
+•
+Improving service levels for customers through round-the-clock
+CGMP compliance, product robustness and supply chain
+This resulted from a more intense competition among manufacturers, Indian branded generic business
+new market entrants, buying consortium pressures, and a higher
+ANDA approval rate from the USFDA.
+Chart 9 ANDAS Filed and Approved
+31%
+Revenue contribution
+*80,293 Mn
+Revenues for FY18
+FY12
+FY13
+FY14
+Cumulative Products Filed
+Cumulative Products Approved
+478
+344
+597
+438
+572
+413
+FY15
+FY16
+FY17
+FY18
+584
+427
+422
+19
+561
+. Ensuring a broad offering to customers across multiple dosage
+forms.
+• Acquired Pharmalucence to get access to sterile injectables capability
+Focussing on complex generics and high-entry barrier segments.
+•
+• Acquired URL's generics business
+• Acquired Taro Pharma and forayed into the generics dermatology market
+• Enhanced and strengthened the US business
+• Entered into the US market by acquiring Caraco
+The Company's consolidated US revenues de-grew by 36% in FY18 to ₹87,466 Million. The US generics market continues to face a challenging
+environment driven by customer consolidation and faster pace of generics approvals by the USFDA. Revenues were also impacted by delay in approvals
+from the Halol facility for the US market.
+17
+18
+(As of March 2018)
+46
+30
+397
+250
+449
+311
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+Key products which drove revenues down were:
+1. Imatinib Mesylate - Revenues declined as expected post the
+expiry of the 180-day exclusivity
+2. Absorica Revenues declined due to changes in co-pay
+programme
+3. Liposomal Doxorubicin - Faced increased competition from other
+generics
+4. Authorised generic versions of Olmesartan - These were
+launched in FY17 and hence faced competitive intensity in FY18
+The US revenues for Taro (a 75% subsidiary) declined by 25% for
+FY18, driven primarily by a difficult generics pricing environment.
+Future growth drivers
+•
+Launch of specialty products
+Patent expiries and the US government's focus on reducing
+healthcare costs will continue to favour growth of low-cost generics
+Focus areas
+Enhancing the share of specialty business.
+•
+FY18 operational highlights
+PHARMA
+Acquired Pharmalucence
+US
+2013
+Acquired URL's generics business
+US
+2012
+Acquired DUSA Pharma, Inc.
+US
+2010
+Acquired Taro Pharmaceutical Industries Ltd.
+Israel
+2008
+Acquired Chattem Chemicals, Inc.
+2005
+Assets of Able Labs Formulation plant in Bryan
+New Jersey, US
+1997
+Acquired Caraco
+Ohio, US
+Detroit, US
+Entry into the US generics market
+Tennessee, US
+Enhanced presence in the US generics market, especially
+the dermatology segment
+Access to controlled substance facility with DEA
+registration
+Access to formulations plant (NJ, US)
+14
+ANNUAL REPORT 2017-18
+Key performance indicators
+GROSS SALES
+(*Billion)
+2014
+FY18
+ILUMYA™ a biologic for psoriasis
+In-licensing agreement with Merck for
+2018-2022
+Japan
+2016
+Distribution agreement with AstraZeneca
+India
+2015
+Acquisition of InSite Vision
+2015
+Acquisition of GSK's Opiates Business
+2015
+Distribution agreement with AstraZeneca
+2015
+Sun Pharma Ranbaxy Merger
+US
+Global Markets
+India
+Global Markets
+Acquisition Rationale
+Enhances specialty pipeline
+Access to local manufacturing capability to enhance
+presence in the Russian market
+Strengthening the distribution of ILUMYA™ in Europe
+Entry into Japan
+Distribution services agreement in India for brand 'Oxra'
+and 'Oxramet'Ⓡ (brands of dipagliflozin, used for diabetes
+treatment)
+Strengthens branded ophthalmic portfolio in the US
+Vertical integration for controlled substances business
+Distribution services agreement in India for brand 'Axcer'Ⓡ
+(brand of ticagrelor, used for the treatment of acute
+coronary syndrome)
+Fifth-largest Global Specialty Generics Pharma Company
+and No.1 Pharma Company in India with strong positioning
+in emerging markets
+Strengthened the specialty product pipeline
+Sterile injectable capacity in the US, supported by strong
+R&D capabilities
+Addition to the US generics portfolio
+Access to branded derma product
+2014
+Global Markets
+FY17
+EBITDA*
+(Billion)
+FY18
+153
+FY17
+18
+26
+PROPERTY, PLANT & EQUIPMENT AND
+OTHER INTANGIBLE ASSETS (at cost/deemed cost)
+(Billion)
+381
+FY18
+366
+FY17
+US Business
+Indian Branded Generics
+Emerging Markets
+Western Europe, Canada, Australia,
+New Zealand & Other Markets
+31%
+Active Pharmaceutical Ingredients
+(API) and Others
+BUSINESS MIX
+32%
+FY18
+68%
+238
+217
+International
+India
+*EBITDA = Gross Sales - (Cost of Material Consumed + Purchase of stock-in-trade + Change in inventories of Finished Goods, Work-in Progress and
+Stock-in-Trade + Employee Benefits Expense + Other Expenses)
+15
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+159
+MARKET CAPITALISATION (as on 31st March)
+(US$ Billion)
+29
+FY17
+MANAGEMENT DISCUSSION AND ANALYSIS
+261
+FY18
+52
+2
+303
+FY17
+88
+NET PROFIT AFTER MINORITY INTEREST
+(*Billion)
+ADJUSTED EARNING PER SHARE (post exceptional items)
+(per share)
+FY18
+222
+22
+FY17
+22%
+BOOK VALUE PER SHARE
+(per share)
+FY17
+NET WORTH
+(Billion)
+FY18
+FY17
+BUSINESS-WISE REVENUE SHARE
+6%
+11%
+18%
+FY18
+34%
+FY18
+9
+70
+FY18
+FY13-18 revenue
+CAGR
+US business
+Ranked in Indian pharmaceutical
+market, with 8.5% market share
+6
+Greater healthcare
+interiors
+penetration of modern medicine to India's
+Government's focus on increasing the
+Growth drivers of Indian pharmaceutical market
+Notes: Spending per capita, per capita growth and overall spending growth in Constant US$.
+Kazakhstan
+Colombia
+Russian Fedaration
+Argentina
+Saudi Arabia
+2022 Per Capita Pharmaceutical Spending
+100
+150
+200
+ཤྩ ༔  ྴ ོ ཎྜ ོ ཞ 。
+250
+Chart 8 India - Estimated per capita pharmaceutical spending versus other emerging markets¹
+The Government of India has made efforts to make pharmaceutical
+products more affordable and step up the promotion of generics.
+Moreover, government-sponsored programmes provide healthcare
+benefits for the low-income section of the population.
+household. As a proportion of GDP, the average healthcare
+expenditure for India is one of the lowest among BRICS nations.
+Out-of-pocket expenses for patients in India continue to constitute
+the biggest share of total medical spending for the average
+Branded generic drugs account for nearly 80% of the Indian
+pharmaceutical market by sales. The market is highly fragmented
+and competitive. Cost-efficiency coupled with a skilled workforce
+continues to make it an attractive destination for investment and
+research.
+MANAGEMENT DISCUSSION AND ANALYSIS
+ANNUAL REPORT 2017-18
+10
+India's pharmaceutical industry is the world's largest supplier of
+generic drugs, accounting for 20% of global export volume. The
+domestic market accounts for over 3% of the global pharmaceutical
+industry in value terms and 10% in volume. It is predicted to grow
+at a CAGR of 9-12% in the 2018-22 period to reach a size of
+US$ 26-30 Billion.
+Indian pharmaceutical market7,8
+Led by increasing expenditure on medical research, North America
+will continue to dominate the global API market. Asia-Pacific regions
+are increasingly favoured for setting up API manufacturing facilities
+due to the availability of affordable labour and low manufacturing
+costs.
+awareness
+industry. The prevalence of chronic diseases such as cancer, diabetes
+and cardiovascular ailments contribute to the market growth.
+Growing demand for quick action, efficient drugs and innovations in
+drug manufacturing also fuel its growth.
+Higher disposable
+LO
+Sun Pharmaceutical Industries Ltd. (Sun Pharma)
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+Nigeria
+11
+economic growth
+Good
+4
+of hospital insurance
+Increasing penetration
+3 |
+Improved healthcare
+solutions
+21
+market
+Growth
+drivers of Indian
+pharmaceutical
+of chronic diseases
+1
+7
+Higher incidence
+|
+Indonesia
+Pakistan
+Bangladesh
+Philippines
+Average spend = US$107 person/year
+(US$ per person/year)
+Vietnam
+South Africa
+5
+incomes
+Active Pharmaceutical Ingredients (API)6
+Vitamins, minerals & supplements, cough, cold and allergy segments
+account for over 50% of market spend. Growing healthcare
+awareness and internet penetration have empowered people to seek
+various available treatments. This is leading to self-medication and
+driving market momentum.
+The global consumer healthcare (GCH) market grew by 4.1% in
+2017 to reach US$ 127 Billion. The US and China continue to be
+the largest GCH markets and together account for 46% of the global
+share. For 2017, North America and European markets recorded 2.5-
+3% growth, Asia-Pacific was up 4.3%, while Latin America (+11.8%)
+and the Middle East & Africa (+6.7%) grew fastest. Among emerging
+markets, Brazil, Russia and India account for almost 9% of the global
+market.
+Russia
+India
+Brazil
+Tier 2 markets
+China
+Region/Country
+Table 4 Pharmaceutical spending and growth in pharmerging markets
+India and Russia are expected to grow faster, in comparison,
+averaging at 10% in the same time span, while the other pharmerging
+markets will average 6-9%. India's spending on medicines will propel
+its entry into the top 10 countries in 2018, and to the ninth position
+overall between 2019 and 2022.
+Spending in pharmerging markets, driven mainly by volume increases
+and the use of generics, is likely to grow by 7-8% in 2018, making
+it the third consecutive year that the growth will be less than 10%.
+China, the largest pharmerging market, will grow at a modest 5-8% in
+the next half decade, reaching US$ 145-175 Billion in 2022.
+2022
+345-375
+2017
+6-9%
+CAGR
+2018-2022
+269.6
+49.7%
+CAGR
+2013-2017
+pharmerging markets
+Chart 7
+(US$ Billion)
+Pharmaceutical spending and growth in
+Branded generic medicines comprise the largest proportion of
+medicine spending in these economies. Payments, primarily out-
+of-pocket for consumers, reflect a correlation between economic
+growth and pharmaceutical spending growth.
+It is likely to be driven by the efforts of individual governments to
+expand public access to healthcare, higher incidence of chronic
+ailments and rising per capita incomes, leading to enhanced
+healthcare awareness.
+The pharmaceutical spending in pharmerging markets stood at
+around US$ 269.6 Billion in 2017. It is estimated to grow at 6-9%
+CAGR during 2018-22 to reach US$ 345-375 Billion in 2022.
+Pharmerging markets¹
+Challenges in the form of complex regulatory framework and periodic
+price cuts have hampered the sector's growth. However, the volume
+share of generic drugs in Japan has nearly doubled in recent years,
+with government policies promoting the use of generics. This trend is
+expected to continue.
+Spending on pharmaceuticals in Japan is likely to continue to grow at
+a sluggish pace, from US$ 84.8 Billion in 2017 to US$ 85-89 Billion in
+2022. High life expectancy with low birth and migration rates have
+contributed to a declining Japanese population.
+Japan
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+2022
+No. 1
+(US$ Billion)
+2017
+2013-17 CAGR
+Global consumer healthcare industry5
+6-9%
+345-375
+9.7%
+269.6
+6-9%
+95-125
+8.9%
+79.7
+7-10%
+20-24
+10.8%
+14.9
+9-12%
+Sun Pharma is the world's fifth largest specialty generics
+pharmaceutical company. It is also India's largest and most valuable
+pharmaceutical enterprise by size and market capitalisation. A
+vertically integrated business, economies of scale and a skilled team
+enable it to deliver well-timed quality products at affordable prices.
+26-30
+19.3
+5-8%
+38-42
+11.5%
+33.1
+7-10%
+89-93
+11.2%
+67.3
+2018-22 CAGR
+5-8%
+145-175
+9.4%
+122.6
+2022
+11.0%
+The Company is deepening its global footprint as a highly trusted
+pharmaceutical company among consumers and healthcare
+professionals in over 100 countries. It has multiple manufacturing
+facilities and R&D centres across the world. The Company has
+32,000+ global employee base that comprises over 50 nationalities.
+As an innovation driven enterprise, it has robust R&D capabilities
+with investments of over 8.6% of annual revenues.
+Tier 3 markets
+Total
+footprint is strengthened through 14 world-class API manufacturing
+facilities around the world.
+Country
+Table 5 Key acquisitions and joint ventures (JV)
+In-licenced Xelpros (ophthalmology) and Elepsia (CNS) products from Sun Pharma Advanced Research
+Company (SPARC). Both these products are awaiting USFDA approval.
+Two ophthalmic molecules undergoing clinical trials as a part of the InSite Vision pipeline.
+Currently marketing Levulan Kerastick (a drug-device combination for treating actinic keratosis) and
+Absorica (for treating acne) in the US dermatology market.
+Launched BromSite - first specialty ophthalmology product in the US - in November 2016.
+Acquired branded oncology product - Odomzo - in December 2016; the product is approved in 30
+countries, including the US, Europe and Australia; currently marketed in the US and Germany.
+Acquired Ocular Technologies for access to global rights for OTX-101 for treating Dry Eye Disease;
+announced positive outcomes from confirmatory Phase-3 trials in January 2017; filed NDA with
+USFDA in December 2017; evaluating other markets for filing OTX-101.
+In-licenced ILUMYATM (a monoclonal antibody targeting IL-23) from MSD for treating chronic plaque
+psoriasis in 2014. Biologics Licence Application (BLA) for ILUMYAT filed with the USFDA and EMA for
+the European market and subsequently received final approval from USFDA in March 2018. Launch
+preparations for commercialising the product in the US are ongoing.
+.
+•
+•
+.
+.
+.
+•
+Building a robust
+specialty portfolio
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+13
+• Optimise operational costs
+• Vertically integrated operations
+Cost leadership
+Direct future investments towards
+differentiated products
+and complex products
+• Increasing contribution of specialty
+Balance profitability and
+investments for future
+Concentrate on payback timelines
+• Ensure acquisitions yield high return
+on investment
+Global Markets
+Russia
+Year
+2016
+Deals
+2016
+(Cumulative numbers for FY16 are lower than FY15 due to Bryan facility
+divestment. URL ANDA numbers added since March 2013 and Ranbaxy ANDA
+numbers added for March'15)
+Sun Pharma's Global Consumer Healthcare (GCH) business is ranked
+among the top 10 across four emerging markets. Its API business
+Chart 10 ANDA Approvals by Therapeutic Area
+110
+97
+60
+As on 31 March, 2018
+Sun Pharma is India's largest pharmaceutical company with 8.5%
+market share in the domestic market. It is one of the leaders in the
+chronic segment and enjoys strong positioning in the acute segment.
+The Company has a well-diversified product portfolio with low
+brand concentration. It has one of the widest reach in India's medical
+fraternity with a 9,200+ strong sales force reaching around 600,000
+doctors. The sales force has one of the highest productivity metrics
+among India's key players.
+Oncology
+19
+Metabolism
+15
+Antibiotic 12
+Gastro 7
+technology and market presence
+26
+Brand
+prominence
+Sun Pharma specialises in technically
+complex products, offering a
+comprehensive therapy basket, and owns
+32 of the top 300 pharmaceutical brands
+in India
+Progress in FY18
+•
+.
+Revenue from Indian business increased by 4% to 80,293 Million
+in FY18.
+This growth was achieved despite the implementation of the
+Goods & Services Tax (GST) in India, which resulted in a temporary
+disruption in the Indian pharmaceutical market distribution chain.
+Acquired 14 brands from Novartis
+2016
+ILUMYA™ for Psoriasis
+Europe
+Licensing agreement with Almirall for
+2016
+Acquired global rights for OTX-101 and Odomzo
+Acquired Biosintez
+No. 1
+• Focus on access to products,
+Ranked by prescriptions with 13
+different doctor categories
+• Use acquisitions to bridge critical
+Japan, A&NZ and others
+Western Europe, Canada,
+Emerging Markets
+MANAGEMENT DISCUSSION AND ANALYSIS
+India Branded Generics
+US Formulations
+Global Presence
+ANNUAL REPORT 2017-18
+12
+Sun Pharma is deepening its
+global footprint as a highly
+trusted pharmaceutical company
+among consumers and healthcare
+professionals in over 100 countries.
+It has multiple manufacturing facilities
+and R&D centres across the world.
+The Company has 32,000+ global
+employee base that comprises over
+50 nationalities. As an innovation
+driven enterprise, it has robust R&D
+capabilities with R&D investments of
+over 8.6% of annual revenues.
+Employees worldwide
+32,000
+Contribution to sales from
+international markets
+Fifth-largest generics
+Company in the US
+with one of the largest
+ANDAs pipeline (139
+ANDAs and 3 NDAs
+awaiting approval).
+68%
+42
+ㅁㅁㅁ
+Products marketed
+2,000
+>
+> 100
+Global revenue as on
+31st March, 2018
+US$ 4 Bn
+Growth pillars
+Growing and sustaining our prominence across markets, therapeutic segments and products.
+Value creation framework
+capability and portfolio gaps
+In India, Sun Pharma enjoys leadership across 13 classes of doctors
+with 32 brands featuring among the top 300 pharmaceutical brands.
+Internationally, the Company has a strong presence in the US,
+emerging markets, Western Europe, Japan, Canada, Israel, Australia
+and New Zealand (A&NZ). It has multiple production units approved
+by various regulatory authorities, including the USFDA.
+Manufacturing facilities across
+six continents
+• Largest Indian
+Markets served
+• Presence in generics
+and branded specialty
+segments with a
+portfolio of over
+in Western Europe,
+Canada, Japan and
+A&NZ.
+Product portfolio
+includes differentiated
+offerings for hospitals,
+injectables and generics
+for retail market.
+Growth
+Strategies
+Create sustainable
+revenue streams
+• Enhance share of specialty business globally
+•
+majority of markets
+Achieve differentiation by focussing on
+Focus on key markets to achieve critical mass
+• Speed to market
+• Ensure sustained compliance with global
+pharmaceutical
+enterprise in the US.
+regulatory standards
+Business development
+technically complex products
+•
+The Company has operations spanning segments like specialty
+products, branded generics, complex and pure generics, over-
+the-counter (OTC) products, anti-retrovirals (ARVs), and
+active pharmaceutical ingredients (APIs). It also manufactures
+intermediates for specialty APIs, offering a full range of dosage forms,
+including tablets, capsules, injectables, ointments, creams and liquids.
+Presence across
+400 products.
+• No. 1 pharmaceutical
+Company in India.
+.
+Leading position in
+high-growth chronic
+therapies.
+• Specialises in technically
+complex products.
+• Among one of
+No. 1 ranked with
+13 classes of doctor
+categories.
+Emerging Markets.
+• Presence in over 100
+countries across Africa,
+Latin America, Asia
+and Eastern & Central
+Europe.
+Key focus markets -
+Russia, Brazil, Romania,
+Mexico, Africa, and
+complementary and
+affiliated markets.
+•
+the largest Indian
+pharmaceutical
+companies in
+270.0-562.5
+521.7
+401,678
+Exercisable at the end of the year *
+1.9
+462.9
+270.0-562.5
+401,678
+Outstanding at the end of the year
+270.0-562.5
+(62,682)
+Lapsed during the year
+500.1
+270.0-562.5
+462.9
+Exercised during the year $
+2.5
+(years)
+480.9
+270.0-703.0
+610,739
+(146,379)
+1.9
+Notes to the Consolidated Financial Statements
+$ Weighted average share price on the date of exercise 690.23
+Outstanding at the commencement of the year
+6.3
+6.3
+(43,472)
+Exercised during the year #
+6.3
+6.3
+(168)
+Forfeited during the year
+6.3
+* Includes options exercised, pending allotment
+(8,644)
+Outstanding at the commencement of the year
+Weighted-average
+exercise prices (₹)
+Exercise price (*)
+Stock options
+(numbers)
+March 31, 2018
+The movement of the options (post split) granted under SUN-ESOP 2015
+for the year ended March 31, 2018
+Lapsed during the year
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+52,284
+6.3
+Outstanding at the commencement of the year
+Weighted-
+401,678
+exercise prices (*) remaining contractual
+life (years)
+prices (*)
+Weighted-average
+Weighted-average
+Range of exercise
+Stock options
+(numbers)
+March 31, 2018
+The movement of the options (post split) granted under SUN-ESOS 2015
+Pursuant to the Scheme of Amalgamation, Sun Pharmaceutical Industries Limited ('transferee company') formulated two Employee
+Stock Option Schemes, namely, (i) SUN Employee Stock Option Scheme-2015 (SUN-ESOS 2015) to administer ESOS 2005 (ii) SUN
+Employee Stock Option Plan-2015 (SUN-ESOP 2015) to administer ESOP 2011. These scheme provide that the number of transferee
+options issued shall equal to the product of number of transferor options outstanding on effectiveness of Scheme multiplied by the
+Share exchange ratio (0.80) and each transferee option shall have an exercise price per equity share equal to transferor option exercise
+price per equity shares divided by the share exchange ratio (0.80) and fractions rounded off to the next higher whole number. The
+terms and conditions of ESOS, of transferee company are not less favourable than those of ESOS's of erstwhile RLL. No new grants
+shall be made under these schemes and these schemes shall operate only for the purpose of administering the exercise of options
+already granted/vested on an employee pursuant to SUN-ESOS 2015 and SUN-ESOP 2015.
+270.0-562.5
+The stock options outstanding as on June 30, 2005 are proportionately adjusted in view of the sub-division of equity shares of the
+Erstwhile RLL from the face value of 10 each into 2 equity shares of 5 each.
+4,000,000
+4,000,000
+approved
+Original No. of options
+In accordance with the above approval of issuance of options, stock options have been granted from time to time.
+ESOS-II
+ESOS 2005
+ESOP 2011
+Scheme
+May 09, 2011
+6.3
+June 25, 2003
+June 30, 2005
+3,000,000
+average remaining
+contractual life
+462.9
+Exercised during the year $
+Weighted-average
+exercise prices (*)
+March 31, 2017
+Range of exercise
+prices (*)
+Stock options
+(numbers)
+$ Weighted average share price on the date of exercise 565.14
+* Includes options exercised, pending allotment
+1.5
+450.3
+270.0-562.5
+263,680
+Exercisable at the end of the year *
+1.9
+1.5
+270.0-562.5
+263,680
+Outstanding at the end of the year
+488.1
+270.0-562.5
+(119,105)
+Lapsed during the year
+480.5
+270.0-562.5
+(18,893)
+450.3
+6.3
+The Black Scholes option-pricing model was developed for estimating fair value of trade options that have no vesting restrictions and
+are fully transferable. Since options pricing models require use of subjective assumptions, changes therein can materially affect fair
+value of the options. The options pricing models do not necessary provide a reliable measure of fair value of options. The volatility in
+the share price is based on volatility of historical stock price of the erstwhile RLL for last 60 months.
+6.3
+Opening balance
+Product and Sales
+Year ended
+March 31, 2017
+* in Million
+Year ended
+March 31, 2018
+Product and Sales
+61 In respect of any present obligation as a result of a past event that could lead to a probable outflow of resources, provision has been
+made, which would be required to settle the obligation. The said provisions are made as per the best estimate of the management and
+disclosure as per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has been given below:
+60 The Group does not have any material associates or joint ventures warranting a disclosure in respect of individual associates or joint
+ventures. The Group's share of other comprehensive income is ₹ Nil (March 31, 2017: ₹ Nil) in respect of such associates and joint
+ventures. The unrecognised share of loss of Nil (March 31, 2017: Nil) in respect of such associates and joint ventures.
+59 Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof:
+* 209.6 Million (March 31, 2017: 96.1 Million).
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+Add: Provision for the year
+PHARMA
+197
+@@ Assumptions used are as applicable at the date of grant in the context of erstwhile RLL.
+459.16 (3.25 years)
+460.79 (2.25 years)
+462.39 (1.25 years)
+40.47%
+8.71% (3.25 years)
+8.65% (2.25 years)
+Grant date fair value
+Expected volatility
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+8.57% (1.25 years)
+Add: Unwinding of discounts on provisions
+related *
+46,903.6
+Date of approval
+198
+In September 2013, the USFDA had put the Mohali
+facility under import alert and was also subjected to
+certain provisions of the consent decree of permanent
+injunction entered in January 2012 by erstwhile
+In December 2015, the USFDA issued a warning letter to
+the manufacturing facility at Halol. Post the November
+2016 inspection, the USFDA re-inspected Halol facility
+in February 2018. At the conclusion of the inspection,
+USFDA issued a Form-483 with three observations.
+The Company has submitted its response documenting
+the corrective measures to resolve the Form-483
+observations. The Company continues to manufacture
+and distribute products to the U.S from Halol facility and
+at the same time is working closely and co-operatively
+with the USFDA to resolve the matter.
+subpoena dated March 13, 2014 seeking information
+primarily related to Toansa manufacturing facility for
+which a Form 483 containing findings of the US-FDA was
+issued in January 2014. The Company is continuing to
+fully co-operate and provide requisite information to the
+US DOJ.
+d)
+c)
+The US-FDA, on January 23, 2014, had prohibited using
+API manufactured at Toansa facility for manufacture of
+finished drug products intended for distribution in the
+U.S. market. Consequentially, the Toansa manufacturing
+facility was subject to certain provisions of the consent
+decree of permanent injunction entered in January
+2012 by erstwhile Ranbaxy Laboratories Ltd (which was
+merged with Sun Pharmaceutical Industries Ltd in March
+2015). In addition, the Department of Justice of the
+USA ('US DOJ'), United States Attorney's Office for the
+District of New Jersey had also issued an administrative
+Since the US-FDA import alert at Karkhadi facility in
+March 2014, the Company remained fully committed
+to implement all corrective measures to address the
+observations made by the US-FDA with the help of third
+party consultant. Substantial progress has been made at
+the Karkhadi facility in terms of completing all the action
+items to address the observations made by the US-FDA
+in its warning letter issued in May 2014. The Company is
+continuing to work closely and co-operatively with the
+US-FDA to resolve the matter. The contribution of this
+facility to Company's revenues is not significant.
+b)
+Less: Utilisation/settlement/reversal
+63 a)
+* Includes provision for trade commitments, discounts, rebates, price reductions, product returns, chargeback, medicaids and contingency provision.
+46,903.6
+(15,852.3)
+(1,295.0)
+437.8
+265.8
+(18,597.2)
+1,015.3
+50,165.4
+Closing balance
+Add/(less): Foreign currency translation difference
+18,905.5
+20,577.9
+related
+44,707.6
+62 The Company is a defendant in respect of a civil antitrust litigation relating to a product Modafinil, in which the plaintiff's have alleged
+that the Company excluded its generic version of Modafinil from the US market and hence have claimed damages under the Sherman
+Act of US. This case is pending in the United States District Court for the Eastern District of Pennsylvania. The Company and one of its
+wholly owned subsidiaries entered into settlements with certain plaintiffs (Apotex Corporation and Retailer Purchasers) in the month of
+July 2017 and September 2017 whereby the Company agreed to pay an aggregate amount of USD 147 Million (9,505.0 Million). This
+amount has been provided for in the consolidated financial statements and disclosed as an exceptional item. The Company continues
+to litigate the case against the other plaintiff's (other than those settled).
+1.25, 2.25 and 3.25 years
+0.43%
+Year ended March 31, 2015
+May 08, 2014
+6.3
+(11,179)
+Forfeited during the year
+1.1
+6.3
+6.3
+169,913
+Outstanding at the commencement of the year
+(years)
+contractual life
+6.3
+Weighted-
+average remaining
+(years)
+average remaining
+contractual life
+Weighted-
+Weighted-average
+exercise prices (*)
+(numbers)
+Exercise price (*)
+Stock options
+March 31, 2017
+# Weighted average share price on the date of exercise 562.58
+Outstanding at the end of the year
+0.4
+Exercised during the year #
+(93,015)
+6.3
+Risk free interest rate
+Expected life of options from the date(s) of grant
+Dividend yield
+Grant Date
+Particulars
+The following table summarises the assumptions used in calculating the grant date fair value for instrument granted in the year ended
+March 31, 2015: @@
+During the current year, the Parent Company has recorded a Stock-based employee compensation expense / (gain) of * (1.0) Million
+(March 31, 2017: 32.3 Million). The amount has been determined under a fair value method wherein the grant date fair value of the
+options was calculated by using Black Scholes pricing model.
+# Weighted average share price on the date of exercise 802.00
+* Includes options exercised, pending allotment
+6.3
+6.3
+941
+Exercisable at the end of the year *
+0.4
+6.3
+6.3
+52,284
+Outstanding at the end of the year
+6.3
+6.3
+(13,435)
+Lapsed during the year
+6.3
+6.3
+The Shareholders' Committee of erstwhile RLL had approved issuance of options under the ESOS's as per details given below:
+257.8
+196
+Present value of minimum lease payments payable
+not later than one year
+later than one year and not later than five years
+later than five years
+56 EMPLOYEE BENEFITS
+Year ended
+March 31, 2018
+* in Million
+Year ended
+March 31, 2017
+317.1
+134.5
+1,003.7
+433.2
+341.6
+494.6
+400.6
+360.3
+228.5
+39.5
+740.3
+265.4
+293.1
+397.1
+Defined contribution plan
+ESOP 2011 provided that the grant price of options would be the face value of the equity share i.e. 5 per share. The options vested
+evenly over a period of three years from the date of grant. Options lapse, if they were not exercised prior to the expiry date, which was
+three months from the date of the vesting. An ESOP Trust had been formed to administer ESOP 2011. Shares issued to the ESOP Trust
+were allocated to the eligible employees upon exercise of stock options from time to time.
+Contribution to Provident Fund and Family Pension Fund
+Contribution to Superannuation Fund
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Less: Unearned finance charges
+Contribution to Labour Welfare Fund
+later than five years
+not later than one year
+March 31, 2018
+* in Million
+Year ended
+March 31, 2017
+(i) Group as lessee
+The future minimum lease payments under non-cancellable operating lease
+not later than one year
+later than one year and not later than five years
+later than five years
+317.4
+386.2
+725.5
+648.1
+80.7
+203.3
+(ii) Group as lessor
+The future minimum lease payments under non-cancellable operating lease
+not later than one year
+143.0
+133.5
+later than one year and not later than five years
+401.1
+532.9
+later than five years
+58.4
+58.3
+(e) Finance lease
+(i) Group as lessee
+The future minimum lease payments under non-cancellable finance lease
+later than one year and not later than five years
+Year ended
+* in Million
+Year ended
+March 31, 2017
+Actuarial valuation for compensated absences is done as at the
+year end and the provision is made as per the Parent and Indian
+subsidiaries rules with corresponding (gain) / charge to the
+consolidated statement of profit and loss amounting to gain of
+* 51.4 Million (March 31, 2017 loss of ₹499.6 Million) and it covers
+all regular employees. Major drivers in actuarial assumptions,
+typically, are years of service and employee compensation.
+Obligation in respect of defined benefit plan and other long term
+employee benefit plans are actuarially determined as at the year
+end using the 'Projected Unit Credit' method. Gains and losses
+on changes in actuarial assumptions relating to defined benefit
+obligation are recognised in other comprehensive income whereas
+gains and losses in respect of other long term employee benefit plans
+are recognised in the consolidated statement of profit and loss.
+192
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+Expense recognised in the consolidated
+statement of profit and loss (Refer note 35)
+Current service cost
+Interest cost
+Expected return on plan assets
+Recognition of unrecognised liabilities of
+earlier years
+Excess of planned assets over
+commitments not recognised in financial
+statements
+* in Million
+Year ended March 31, 2018
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+Year ended March 31, 2017
+Provident Fund
+(Funded)
+Gratuity
+(Funded)
+360.6
+244.1
+66.0
+251.0
+(161.2)
+Other long term benefit plan
+Year ended
+March 31, 2018
+Salary risk - The present value of the defined benefit plan
+liability is calculated by reference to the future salaries of plan
+participants. As such, an increase in the salary of the plan
+participants will increase the plan's liability.
+Interest rate risk - A decrease in the bond interest rate will
+increase the plan liability. However, this will be partially offset
+by an increase in the return on the plan's debt investments.
+764.5
+673.2
+72.7
+74.9
+48.7
+30.5
+0.7
+0.2
+191
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+Defined benefit plan
+b)
+Risks
+Gratuity
+In respect of Gratuity, a defined benefit plan, contributions
+are made to LIC's Recognised Group Gratuity Fund Scheme.
+It is governed by the Payment of Gratuity Act, 1972. Under
+the Gratuitiy Act, employees are entitled to specific benefit
+at the time of retirement or termination of the employment
+on completion of five years or death while in employement.
+The level of benefit provided depends on the member's length
+of service and salary at the time of retirement/termination
+age. Provision for Gratuity is based on actuarial valuation
+done by an independent actuary as at the year end. Each
+year, the Parent and Indian subsidiaries reviews the level of
+funding in gratuity fund. The Parent and Indian subsidiaries
+decides its contribution based on the results of its annual
+review. The Parent and Indian subsidiaries aims to keep annual
+contributions relatively stable at a level such that the fund
+assets meets the requirements of gratuity payments in short to
+medium term.
+Pension fund
+The Parent and Indian subsidiaries has an obligation towards
+pension, a defined benefit retirement plan, with respect to
+certain employees, who had already retired before March 01,
+2013, will continue to receive the pension as per the pension
+plan.
+These plans typically expose the Parent and Indian subsidiaries to
+actuarial risks such as: investment risk, interest rate risk, longevity
+risk and salary risk.
+i)
+Investment risk - The present value of the defined benefit
+plan liability is calculated using a discount rate determined
+by reference to the market yields on government bonds
+ii)
+iii)
+iv)
+denominated in Indian Rupees. If the actual return on plan asset
+is below this rate, it will create a plan deficit. However, the risk is
+partially mitigated by investment in LIC managed fund.
+Longevity risk - The present value of the defined benefit plan
+liability is calculated by reference to the best estimate of
+the mortality of plan participants both during and after their
+employment. An increase in the life expectancy of the plan
+participants will increase the plan's liability.
+70.2
+(d) Operating lease
+Notes to the Consolidated Financial Statements
+530.8
+3,147.9
+187.0
+(41.6)
+676.2
+(999.9)
+41.6
+2,189.6
+Out of a MAT credit entitlement of 8,222.7 Million which was written down by the erstwhile RLL during the quarter ended December 31, 2014, an amount of
+* 7,517.0 Million was recognised by the Company in the year ended March 31, 2015, on a reassessment by the Management, based on convincing evidence that
+the combined amalgamated entity would pay normal income tax during the specified period and would therefore be able to utilize the MAT credit entitlement so
+recognised.
+* Movement during the year includes foreign currency translation difference amounting to 81.1 Million (loss) for the year ended March 31, 2018.
+iii) Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax
+assets have been recognised are attributable to the following:
+* in Million
+As at
+Tax losses
+Unabsorbed depreciation
+Unused tax credits (Including MAT credit entitlement)
+Deductible temporary differences
+As at
+March 31, 2018
+101,672.0
+March 31, 2017
+81,776.7
+31,260.2
+24,900.1
+7,606.1
+8,178.9
+22,933.0
+25,892.5
+163,471.3
+140,748.2
+The unused tax credits will expire from financial year 2018-19 to financial year 2028-29 and unused tax losses expiry ranges from financial
+year 2018-19 to 2032-33. In case of certain overseas subsidiaries which have tax losses and unused tax credits, the amount is not material
+and there is no expiry period for tax losses and unused tax credits.
+408.7
+52 EARNINGS PER SHARE
+3.3
+61.4
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+ii) Deferred tax liabilities (Net)
+Opening balance
+April 01, 2017
+Profit/(loss)
+movement during
+Other
+the Year
+comprehensive
+income movement
+in Million
+Closing balance
+March 31, 2018
+during the Year*
+Deferred tax liabilities
+Difference between written down value of property,
+plant and equipment and capital work-in-progress as
+per books of accounts and income tax and others
+Undistributed profits
+3,678.7
+(1,797.4)
+1,881.3
+984.5
+3,678.7
+(812.9)
+984.5
+2,865.8
+Less Deferred tax assets
+Expenses claimed for tax purpose on payment basis
+Others
+469.4
+(157.0)
+(44.9)
+267.5
+344.0
+for the year ended March 31, 2018
+Profit for the year (in Million) - used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic earnings per share (A)
+Add: Dilution effect of employee stock options (B)
+Basic earnings per share (in ₹)
+Year ended
+March 31, 2017
+India
+United States of America
+Emerging markets
+Rest of world
+84,102.0
+80,610.1
+88,635.4
+138,823.6
+52,221.6
+49,074.2
+35,700.4
+34,134.4
+260,659.4
+302,642.3
+In view of the interwoven / intermix nature of business and manufacturing facility, other segmental information is not ascertainable.
+Concentration of revenues from two customers of the Group were 38.4% and 35.7% of total revenue for the year ended March 31, 2018 and
+March 31, 2017 respectively.
+54 Other intangible assets consisting of trademarks, designs, technical know-how, licences, non-compete fees and other intangible assets
+are stated at cost of acquisition based on their agreements. The amortisable amount of intangible assets is arrived at, based on the
+management's best estimates of useful lives of such assets after due consideration as regards their expected usage, the product life
+cycles, technical and technological obsolescence, market demand for products, competition and their expected future benefits to the
+Group.
+55 LEASES
+(a)
+(b)
+(c)
+The Group has given certain premises and Plant and Machinery under operating lease or leave and license agreements. These are
+generally not non-cancellable and periods range between 11 months to 10 years under leave and license / lease and are renewable by
+mutual consent on mutually agreeable terms. The Group has received refundable interest free security deposits, where applicable, in
+accordance with agreed terms.
+The Group has obtained certain premises for its business operations (including furniture and fittings, therein as applicable) under
+operating lease or leave and license agreements. These are generally not non-cancellable and range between 11 months to 10 years
+under leave and licenses, or longer for other lease and are renewable by mutual consent on mutually agreeable terms. The Group has
+given refundable interest free security deposits in accordance with the agreed terms. These refundable security deposits have been
+valued at amortised cost under relevant Ind AS.
+Lease receipts/payments are recognised in the consolidated statement of profit and loss under "Lease rental and hire charges" and
+"Rent" in note 32 and note 37.
+190
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Year ended
+March 31, 2018
+Weighted average number of shares used in computing diluted earnings per share (A+B)
+Nominal value per share (in )
+* in Million
+The reportable segments derives their revenues from the sale of pharmaceuticals products (generics, speciality, API, etc.). The CODM reviews
+revenue as the performance indicator. The measurement of each segment's revenues, expenses and assets is consistent with the accounting
+policies that are used in preparation of the Group's consolidated financial statements.
+Diluted earnings per share (in)
+Year ended
+March 31, 2018
+21,615.5
+2,399,296,653
+65,420
+2,399,362,073
+Year ended
+March 31, 2017
+69,643.7
+2,403,319,673
+203,455
+2,403,523,128
+1
+9.0
+9.0
+1
+29.0
+29.0
+189
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+53 SEGMENT REPORTING
+The Chief Operating Decision Maker ('CODM') evaluates the Group's performance and allocates resources based on an analysis of various
+performance indicators by reportable segments. The Group's reportable segments are as follows:
+India
+1.
+2.
+3.
+United States of America
+Emerging Markets
+4.
+Rest of World
+Revenue by Geography
+592.6
+(598.5)
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employee State Insurance Corporation (ESIC) and other Funds
+which covers all regular employees of the Parent and Indian subsidiaries. While both the employees and the Parent and Indian subsidiaries make
+predetermined contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund and other statutory funds are made only
+by the Parent and Indian subsidiaries. The contributions are normally based on a certain percentage of the employee's salary. Amount recognised
+as expense in respect of these defined contribution plans, aggregate to ₹ 886.6 Million (March 31, 2017: 778.8 Million).
+(177.6)
+N.A.
+N.A.
+58 to 60
+N.A.
+to 14.50%
+N.A.
+Indian Assured
+Lives Mortality
+(2006-08)
+N.A. In range of 1.00%
+to 13.50%
+58 to 60
+ANNUAL REPORT 2017-18
+CONSOLIDATED FINANCIAL STATEMENTS
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+Sensitivity analysis:
+Impact on defined benefit obligation
+Delta effect of +1% change in discount rate
+Delta effect of -1% change in discount rate
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee turnover
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation
+31-Mar-19
+31-Mar-20
+31-Mar-21
+31-Mar-22
+31-Mar-23
+Thereafter
+The major categories of plan assets are as under:
+Central government securities
+Bonds and securities of public sector / financial institutions
+Insurer managed funds (Funded with LIC, break-up not
+available)
+Surplus fund lying uninvested
+As at March 31, 2018
+Pension Fund
+(Unfunded)
+Indian Assured
+Lives Mortality
+(2006-08)
+As at March 31, 2017
+N.A.
+6.81% In range of 6.81%
+to 7.74%
+N.A. In range of 6.81%
+to 7.74%
+N.A. In range of 7.00%
+598.5
+177.6
+17.4
+1.8
+42.6
+673.2
+18.0
+250.0
+(173.6)
+(507.6)
+(4,725.5)
+(228.8)
+3,068.8
+2,365.4
+As at March 31, 2018
+As at March 31, 2017
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+Pension Fund
+Gratuity
+(Unfunded)
+(Funded)
+7.50% In range of 7.50%
+N.A.
+to 7.70%
+7.50%
+N.A. In range of 7.00%
+to 11.65%
+N.A.
+Indian Assured
+Lives Morality
+(2006-08)
+15.00%
+N.A.
+Indian Assured
+Lives Mortality
+(2006-08)
+161.2
+* in Million
+Pension Fund
+(Unfunded)
+352.3
+151.9
+355.1
+152.1
+353.2
+174.4
+1,496.9
+174.8
+1,601.0
+9.9
+67.3
+2,977.6
+14.0
+20.9
+69.3
+2,253.0
+22.2
+The contribution expected to be made by the Parent and Indian subsidiaries for gratuity, during financial year ending March 31, 2019 is
+* 384.8 Million (March 31, 2018: 486.3 Million).
+In the United States, the Company sponsors a defined contribution 401(k) retirement savings plan for all eligible employees who meet
+minimum age and service requirements. The Company has no further obligations under the plan beyond its annual matching contributions.
+57 Taro Pharmaceutical Industries Ltd and its Israeli subsidiaries are required to make severance or pension payments to dismissed
+employees and to employees terminating employment under certain other circumstances. Deposits are made with a pension fund or
+other insurance plans to secure pension and severance rights for the employees in Israel.
+58 EMPLOYEE SHARE-BASED PAYMENT PLANS
+Erstwhile Ranbaxy Laboratories Limited (RLL) had Employee Stock Option Schemes ("ESOS's”) namely, Employees Stock Option Scheme
+-II (ESOS-II), Employees Stock Option Scheme 2005 (ESOS 2005) and Employees Stock Option Plan 2011 (ESOP 2011) for the grant
+of stock options to the eligible employees and Directors of the Erstwhile RLL and its subsidiaries. ESOS-II had been discontinued from
+January 17, 2015. The ESOS's are administered by the Compensation Committee ("Committee"). Options are granted at the discretion of
+the Committee to selected employees depending upon certain criterion. Each option comprises one underlying equity share.
+ESOS 2005 provided that the grant price of options would be the latest available closing price on the stock exchange on which the
+shares of the erstwhile RLL were listed, prior to the date of the meeting of the Committee in which the options were granted. If the
+shares are listed on more than one stock exchange, then the stock exchange where there was highest trading volume on the said
+date were be considered. The options vested evenly over a period of five years from the date of grant. Options lapse, if they are not
+exercised prior to the expiry date, which was ten years from the date of grant.
+195
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+132.5
+Gratuity
+(Funded)
+389.4
+353.9
+Gratuity
+(Funded)
+(68.2)
+(155.8)
+212.5
+(226.5)
+80.2
+173.1
+86.0
+164.9
+237.5
+(151.5)
+(214.1)
+(40.5)
+(98.2)
+44.6
+110.7
+87.4
+560.3
+87.4
+466.6
+100.3
+390.2
+100.4
+320.2
+115.2
+397.7
+115.3
+132.3
+2,131.2
+(73.2)
+2,365.4
+4,598.6
+2,708.4
+year
+Current service cost
+360.6
+244.1
+Interest cost
+66.0
+251.0
+70.2
+592.6
+212.5
+Liability transferred in/ acquisitions
+1.6
+17.4
+(Refer note 76)
+Obligations transferred
+Benefits paid
+(87.4)
+(173.6)
+(87.6)
+Obligation transferred to regional
+1.8
+(507.6)
+(4,685.4)
+(228.8)
+provident fund, net of accumulated
+unrecognised gains
+Actuarial (gains)/losses on obligations
+930.7
+due to change in demographic
+3,682.3
+obligations
+4,632.8
+5.9
+Expense charged to the consolidated
+66.0
+450.4
+70.2
+279.0
+statement of profit and loss
+Remeasurement of defined benefit
+obligation recognised in other
+comprehensive income
+Actuarial loss/(gain) on defined benefit
+(44.4)
+(695.7)
+56.2
+728.7
+obligation
+Actuarial gain on plan assets
+(42.6)
+Expense/(income) charged to other
+(44.4)
+(738.3)
+56.2
+(18.0)
+710.7
+comprehensive income
+Reconciliation of defined benefit
+969.5
+(160.9)
+Obligations as at the beginning of the
+due to change in financial assumptions
+due to experience
+Expected return on plan assets
+Expected rate of salary increase
+Interest rate guarantee
+Mortality
+Withdrawal
+Retirement age (years)
+194
+As at
+As at
+* in Million
+March 31, 2018
+March 31, 2017
+Provident Fund
+(Funded)
+Gratuity
+(Funded)
+3,426.2
+(3,068.8)
+357.4
+3,682.3
+(2,365.4)
+1,316.9
+* in Million
+Year ended
+March 31, 2018
+Year ended
+March 31, 2017
+Gratuity
+Provident Fund
+Gratuity
+(Funded)
+(Funded)
+assumptions
+(Funded)
+Discount rate
+Funds transferred to regional provident fund
+Plan assets as at the year end
+Gratuity
+(Funded)
+Employer's contribution during the year
+(575.4)
+Employees' contributions during the year
+Benefits paid
+54.5
+Obligation as at the year end
+903.7
+40.6
+3,426.2
+1.7
+16.3
+624.3
+88.1
+969.5
+3,682.3
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+193
+Notes to the Consolidated Financial Statements
+Actuarial gain
+Plan assets transferred
+Assets transferred in/ acquisitions
+Expected return
+Reconciliation of plan assets
+Excess of planned assets over commitments not recognised
+Net liability recognised in the consolidated balance sheet
+Plan assets as at the beginning of the year
+Present value of commitments (as per actuarial valuation)
+Reconciliation of liability/(asset) recognised in the consolidated
+balance sheet
+for the year ended March 31, 2018
+Fair value of plan assets
+(50.0)
+5.6
+72 DISCLOSURE OF A SUBSIDIARY THAT HAS NON-CONTROLLING INTEREST THAT IS MATERIAL TO THE GROUP
+71 Post implementation of Goods and Service Tax ("GST") with effect from July 01, 2017, sale of products is disclosed net of GST. Sale
+of products for the previous year included excise duty which is now subsumed in GST. Sale of products for the year ended March 31,
+2018 includes excise duty for the period ended June 30, 2017. Accordingly, sale of products for the year ended March 31, 2018 are not
+comparable with year ended March 31, 2017.
+Name of Subsidiary
+* Held by non-controlling interest
+Taro Pharmaceutical Industries Ltd.
+and its subsidiaries (TARO Group)
+The Parent Company holds 24.91% in the capital of Shimal Research Laboratories Limited. However, as the Parent Company
+does not have any 'Significant Influence' in Shimal Research Laboratories Limited, as is required under Ind AS 28 - "Investments
+in Associates and Joint Ventures", the said investment in Shimal Research Laboratories Limited has not been consolidated as an
+"Associate Entity".
+Nature*
+Principal place of
+business
+United States of
+America
+Country of
+incorporation
+Israel
+Sun Pharma Global FZE, a subsidiary of the Parent Company holds 23.35% in the capital of Enceladus Pharmaceutical B.V.
+However, as Sun Pharma Global FZE does not have any 'Significant Influence' in Enceladus Pharmaceutical B.V., as is required
+under Ind AS 28 - "Investments in Associates and Joint Ventures", the said investment in Enceladus Pharmaceutical B.V. has not
+been consolidated as an "Associate Entity".
+Beneficial
+ownership
+Voting power
+TARO Group
+Name of Subsidiary
+b)
+Zenotech Laboratories Limited, India* [Refer note 39(t)]
+* includes interest accrued and due on loans amounting to 214.9 Million in March 31, 2017
+Loans have been granted to the above entity for the purpose of its business.
+726.9
+726.9
+726.9
+March 31, 2017
+March 31, 2018
+As at
+As at
+* in Million
+Less: allowance for doubtful loan/interest accrued and due on loan
+Considered doubtful
+Interest bearing with specified repayment schedule:
+for the year ended March 31, 2018
+Individually immaterial subsidiaries with non-controlling
+interests
+69 LOANS/ADVANCES DUE FROM AN ASSOCIATE
+70 a)
+Total
+Non-current liabilities
+interests
+As at
+Notes to the Consolidated Financial Statements
+As at
+* in Million
+Current liabilities
+Current assets
+Non-current assets
+Consolidated balance sheet of TARO Group
+The summarised consolidated financial information of TARO Group before inter-company eliminations:
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+201
+37,908.6
+38,841.6
+8,818.6
+As at
+March 31, 2018
+25.18%
+As at
+March 31, 2017
+27.19%
+16.79%
+18.13%
+Profit allocated to non-controlling
+in Million
+Year ended
+March 31, 2018
+4,284.6
+183.4
+Year ended
+March 31, 2017
+8,599.9
+218.7
+As at
+March 31, 2018
+36,811.1
+2,030.5
+As at
+March 31, 2017
+36,547.7
+1,360.9
+4,468.0
+Accumulated non-controlling interests
+CONSOLIDATED FINANCIAL STATEMENTS
+65 The Parent Company completed buy-back of 7,500,000
+As on March 31, 2017, secured short term borrowings had first charge on a pari-passu basis, by hypothecation of inventories and
+receivables, both present and future. The charge has been relinquished during the year ended March 31, 2018.
+199
+USD 100 Million (March 31, 2017: USD 100
+Million) equivalent to ₹6,493.0 Million (March 31,
+2017: 6,485.5 Million). The loan was taken on
+June 04, 2013 and is repayable in 3 installments
+USD 50 Million (March 31, 2017: USD 50 Million)
+equivalent to 3,246.5 Million (March 31, 2017:
+*3,242.7 Million). The loan was taken on
+September 20, 2012 and is repayable in 2 equal
+installments of USD 25 Million each. The first
+installment of USD 25 Million is due on September
+20, 2019 and last installment of USD 25 Million is
+due on September 18, 2020.
+USD Nil (March 31, 2017: USD 10 Million)
+equivalent to Nil (March 31, 2017: * 648.6
+Million). The loan was taken on June 30, 2011 and
+is repayable in 3 equal installments of USD 10
+Million each at the end of 4th year, 5th year and 6th
+year. Last installment of USD 10 Million has been
+repaid during the year ended March 31, 2018. First
+and second installment of USD 10 Million each has
+been repaid in previous years.
+Million). For the ECB loans outstanding as at March
+31, 2018, the terms of repayment for borrowings
+are as follows:
+16,602.9
+(ECBs) has 5 loans aggregating of USD 256 Million
+(March 31, 2017: USD 256 Million) equivalent to
+16,622.1 Million (March 31, 2017:
+Unsecured External Commercial Borrowings
+b)
+a)
+(i)
+Unsecured
+Loan of USD 16.7 Million equivalent to 1,086.5
+Million (March 31, 2017: USD 17.5 Million
+equivalent 1,134.2 Million [Included in non-
+current borrowing March 31, 2018: 1,035.3
+Million (March 31, 2017: 1,085.2 Million) and
+March 31, 2018: 51.2 Million (March 31, 2017:
+* 49.0 Million) in current maturities of long-term
+debt], which is repayable in varying amounts
+by June 2033. The loan is collateralised by
+substantially all the assets of Pharmalucence Inc.
+The effective interest rate was 3.05% at March
+31, 2018.
+(i)
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Secured
+Lease obligations of ₹1,261.9 Million (March 31, 2017:
+*702.0 Million) [included in non-current borrowing March
+31, 2018: 1,033.4 Million (March 31, 2017: 662.5
+Million) and March 31, 2018: 228.5 Million (March 31,
+2017: 39.5 Million) in current maturities of long term
+finance lease obligations] repayable by FY 2019-2025 is
+secured against assets taken on finance lease.
+B
+of 108.2 Million (March 31, 2017: ₹ 108.2 Million) has
+been secured by hypothecation of all assets of the Parent
+Company. The loan is repayable in 10 equal half yearly
+installments commencing from December 14, 2019, last
+installment is due on June 14, 2024.
+A Secured term loan from other parties:
+Secured term loan from department of biotechnology
+67 DETAILS OF LONG-TERM BORROWINGS
+AND CURRENT MATURITIES OF LONG-TERM
+DEBT AND FINANCE LEASE OBLIGATIONS
+[INCLUDED UNDER OTHER FINANCIAL
+LIABILITIES (CURRENT)]
+66 Property, plant and equipment consisting of land, building,
+plant and equipments, furniture and fixtures amounting
+to Nil (March 31, 2017: 65.9 Million) in respect of the
+manufacturing facility in Ireland are held for sale.
+equity shares of 1 each (representing 0.31% of total pre buy
+back paid up equity capital) on October 18, 2016, from the
+shareholders on a proportionate basis by way of a tender offer
+at a price of * 900 per equity share for an aggregate amount
+of 6,750.0 Million in accordance with the provisions of the
+Companies Act, 2013 and the SEBI (Buy Back of Securities)
+Regulations, 1998. This buyback of equity shares was approved
+by the Board of Directors of the Parent Company at its meeting
+held on June 23, 2016.
+64 Pursuant to the declaration executed by the Sun Pharma
+Laboratories Limited (SPLL) ('Donor') in favour of an entity
+controlled by Trumpcard Advisors and Finvest LLP (Associate
+of the SPLL), namely Vintage Power Generation LLP ('Donee')
+on March 31, 2017, the power undertaking of the Donor
+located at Kukshi, Madhya Pradesh has been gifted to the
+Donee. Accordingly, on and with effect from the close of
+business hours on March 31, 2017, all the assets, movable and
+immovable, tangible and intangible, along with the liabilities
+pertaining to the said power undertaking stand transferred
+to and vested in the Donee as a going concern without
+consideration. Accordingly, the value of power undertaking
+gifted to the Donee has been added to the cost of investment
+of the SPLL in the said Associate.
+Ranbaxy Laboratories Ltd (which was merged with Sun
+Pharmaceutical Industries Ltd in March 2015). In March
+2017, the USFDA lifted the import alert and indicated
+that the facility was in compliance with the requirements
+of cGMP provisions mentioned in the consent decree.
+The facility will continue to demonstrate sustainable
+CGMP compliance for a fixed period of time as required
+by the consent decree. The Company has started
+manufacturing and distributing products to the U.S from
+Mohali facility.
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+10.6
+Term loan from banks:
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+Borrowings made by overseas subsidiaries are supported by the letters of awareness issued by the Parent Company.
+December 22,
+2017
+5,000.0
+b)
+a)
+200
+68 DETAILS OF SECURITIES FOR CURRENT BORROWINGS ARE AS UNDER:
+The Company has not defaulted on repayment of loan and interest payment thereon during the year.
+1,000,000
+Rated unsecured listed redeemable 5,000 Non-Convertible
+debentures Series 1 (redeemed during the year)
+Rated unsecured listed redeemable 5,000 Non-Convertible
+debentures Series 2 (included in current maturities of long-term
+debt as at March 31, 2018)
+March 22, 2019
+Date of
+Redemption
+Redemption
+Amount
+(in Million)
+5,000.0
+1,000,000
+Face Value (*)
+10,000 Million) rated unsecured listed redeemable non-convertible debentures at a coupon
+rate of 7.94% p.a. were issued by Sun Pharma Laboratories Limited ("SPLL" - the Wholly owned subsidiary) on December 23,
+2015. Following are the details
+d)
+f)
+viz., the first installment of USD 30 Million is due
+on May 31, 2020, second installment of USD 30
+Million is due on November 30, 2020 and last
+installment of USD 40 Million is due on November
+30, 2021.
+USD 50 Million (March 31, 2017: USD 50 Million)
+equivalent to 3,246.5 Million (March 31, 2017:
+*3,242.7 Million). The loan was taken on August
+11, 2015 and is repayable on August 08, 2019.
+USD Nil (March 31, 2017: USD 30 Million)
+equivalent to Nil. (March 31, 2017: 1,945.7
+Million). The loan was taken on September 09,
+2015 and has been repaid during the year ended
+March 31, 2018.
+USD 26 Million (March 31, 2017: USD 16 Million)
+equivalent to 1,688.2 Million (March 31, 2017:
+* 1,037.7 Million). The loan was taken in tranches
+of USD 16 Million on March 24, 2017 and USD
+10 Million on June 30, 2017. The loan is repayable
+ANNUAL REPORT 2017-18
+(ii)
+USD 30 Million (March 31, 2017: USD Nil)
+equivalent to 1,947.9 Million (March 31, 2017:
+*Nil). The loan was taken on September 08, 2017
+and is repayable on September 07, 2020.
+Unsecured loan under Foreign Currency
+Non-Resident (FCNR B) Scheme of USD Nil (March
+31, 2017: USD 50 Million) equivalent to * Nil
+(March 31, 2017: 3,242.8 Million). The loan was
+taken on August 19, 2015 and has been repaid
+during the year ended March 31, 2018.
+The aforementioned unsecured ECB loans are
+availed from various banks at floating rate linked
+to Libor (2.26% as at March 31, 2018) and secured
+loan from department of biotechnology have been
+availed at a range from 2% to 3%.
+D
+Unsecured debentures:
+* 10,000 Million (March 31, 2017:
+in 2 installments viz., the first installment of USD
+16 Million is due on March 22, 2019 and last
+installment of USD 10 Million is due on June
+28, 2019.
+March 31, 2018
+2,295.7*
+14.3
+(159.0)**
+(0.7)
+1,553.4
+0.4
+10 Zenotech Laboratories
+Medicare Limited
+0.0
+(72.9)
+(11.5)
+(0.2)
+(61.4)
+(0.3)
+(83.9)
+(0.0)
+(0.3)
+0.5
+(0.6) (158.5)**
+Limited
+3
+Brasil Ltda.
+(199.1)
+(0.9)
+(0.5) (2,289.9)
+Sun Farmaceutica Do
+2
+(Bangladesh) Limited
+187.8
+0.9
+1,084.7
+0.3
+Sun Pharmaceutical
+1
+Foreign
+Sun Pharmaceutical
+Sun Pharma De Mexico
+9
+0.0
+11.0
+0.0
+Softdeal Trading
+7
+Limited
+0.0
+0.0
+0.0
+0.0
+Skisen Labs Private
+6
+Private Limited
+0.4
+0.0
+0.0
+0.4
+0.0
+0.6
+0.0
+0.0
+0.0
+5.3
+0.0
+Universal Enterprises
+8
+Limited
+Company Private
+0.4
+0.0
+0.0
+0.0
+0.4
+0.0
+Private Limited
+0.2
+717.1
+1.0
+455.7
+2.1
+877.7
+0.2
+Ranbaxy (Malaysia)
+9
+(0.0)
+Generiques
+(1.2)
+(2,199.2)
+(0.5)
+Ranbaxy Pharmacie
+8
+Venezuela, C.A.
+(257.9)
+(0.7)
+(1.0) (257.9)
+1.7
+(Netherlands) B.V
+(1.3) (343.5)
+(3.5) (934.3)#
+143.1
+3.0
+(343.5)
+(1,077.4)#
+(5.0)
+52,694.6
+12.6
+11 Sun Pharma
+(1.6)
+211.2
+0.1
+10 Ranbaxy Nigeria Limited
+SDN. BHD.
+455.7
+(0.7)
+(0.0)
+(2.6)
+(0.0)
+Sun Pharmaceutical
+5
+DE C.V.
+0.2
+0.0
+SPIL De Mexico S.A.
+4
+S.A. DE C.V.
+223.5
+0.8
+(199.1)
+(0.8)
+187.8
+0.7
+223.5
+(0.0)
+11.5
+(149.3)
+1.8
+Sun Pharma De
+7
+Industries" Limited
+Pharmaceutical
+(10.0)
+(0.0)
+(10.0)
+(0.0)
+(187.8)
+(0.0)
+OOO "Sun
+6
+Peru S.A.C.
+1.8
+0.0
+0.0
+(Formerly known as
+0.0
+5
+855.0
+725.7
+Purchase price paid
+1,580.7
+595.4
+726.5
+Total purchase price
+From the date of acquisition, Zenotech Laboratories Limited
+has contributed revenue of 60.8 Million and loss before tax
+of * 60.9 Million to the Group. If the business combinations
+had taken place at the beginning of the year, revenue would
+have been 64.1 Million and the loss before tax would have
+been * 68.2 Million. In compliance with the relevant provisions
+of Ind AS 103, the Company has reversed impairment in the
+books to the extent of fair value of equity shares determined
+on the basis of right issue price amounting to 725.7 Million.
+77 On November 23, 2016, Taro announced that its Board of
+Directors authorised a USD 250 Million share repurchase of
+ordinary shares. On November 07, 2017, Taro Board extended
+the share repurchase program for one year. During the year
+ended March 31, 2018, Taro has repurchased 1,085,694 shares
+at an average price of USD 102.52 (March 2017: 2,252,725
+shares at an average price of USD 130.87). Through May 01,
+2018, in total under the authorisation, Taro has repurchased
+1,774,064 shares at an average price of USD 102.83; with USD
+67.6 Million remaining.
+Goodwill
+Total identifiable assets at fair value
+1,711.8
+Net worth
+1,232.8
+Total
+190.6
+Non-controlling interest
+78 In March 2018, Taro reached a settlement with the tax
+authority, under which Taro is obligated to pay a reduced tax
+assessment of USD 15.0 Million, and Taro was permitted to
+record the unutilised capital loss, transfer intellectual property
+from Taro North America to Taro Israel and Taro Canada and
+reorganise assets held by Taro subsidiaries without triggering
+an Israeli tax event (the "Settlement"). The settlement settled
+all tax disputes between the parties for the tax years 2010
+through 2014 as well as related tax issues with respect to the
+tax years 2015 through 2016, which years were not subject to
+the disputes.
+Impairment reversal
+As per our report of even date
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+203
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 25, 2018
+SUDHIR V. VALIA
+Wholetime Director
+SUNIL R. AJMERA
+Company Secretary
+C. S. MURALIDHARAN
+Chief Financial Officer
+DILIP S. SHANGHVI
+Managing Director
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Mumbai, May 25, 2018
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+Provision
+PHARMA
+Deferred tax liabilities
+Other current liabilities
+* in Million
+Cash and cash equivalents
+Assets
+The following assets and liabilities were recognised as at the
+date of acquisition (at fair value):
+The Group has elected to measure the non-controlling interests
+in the acquiree at its proportionate share of net assets.
+With effect from July 27, 2017 Zenotech Laboratories Limited
+has ceased to be an associate and has become a subsidiary of
+Sun Pharmaceutical Industries Limited.
+8.0
+1.2
+2,944.6
+Zenotech Laboratories Limited
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+202
+75 RELATED PARTY DISCLOSURES (IND AS-24) - AS
+PER ANNEXURE 'B'
+76 BUSINESS COMBINATIONS
+Trade receivables
+Inventories
+1,197.3
+0.1
+17.5
+Other current financial liabilities
+Trade payables
+512.0
+Borrowings
+Liabilities
+Total
+Other financial assets
+Bank balances other than above
+intangible assets
+1,689.8
+Property, plant and equipment and other
+28.7
+Other non-current assets
+2.0
+Other current assets
+48.3
+297.4
+184.5
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2018
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and
+joint ventures as per Schedule III of Companies Act, 2013:
+33.5
+78.1
+1.6
+8,762.2#
+40.5
+196,823.7
+8,840.3#
+46.9
+2
+Centre Limited
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+Sun Pharma
+Laboratories Limited
+3
+Faststone Mercantile
+Private Limited
+0.6
+0.0
+2,920.9
+0.7
+Neetnav Real Estate
+4
+Limited
+Company Private
+0.4
+0.0
+0.4
+0.0
+11.5
+0.0
+1.6
+0.0
+Green Eco Development
+1
+Parent Entity - Sun
+net assets
+* in Million
+As % of
+consolidated
+(TCI)
+2017-18
+Share in total
+comprehensive income
+Share in other
+comprehensive income
+(OCI)
+2017-18
+ANNEXURE 'A'
+No.
+2017-18
+2017-18
+Name of the entity
+S.
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+47.1
+Realstone Multitrade
+1,97,701.0
+As % of
+Indian
+Subsidiaries
+Limited
+Pharmaceutical Industries
+(4,451.0)
+TCI
+(16.9)
+494.9
+March 31, 2017
+10.4
+(4,945.9)
+OCI
+consolidated in Million
+consolidated in Million
+* in Million
+As % of
+As % of
+consolidated
+profit or (loss)
+(22.9)
+74 Tax expense (exceptional) for the year ended March 31, 2018
+includes deferred tax assets of 2,585.7 Million created on
+difference on tax and book value on intra-group transfer of
+certain intangibles. Further, it also includes an impact of
+* 5,130.2 Million on account of re-measurement of the Group's
+deferred tax assets as a result of the Tax Cut and Jobs Act
+enacted in United States of America on December 22, 2017.
+Ranbaxy (Netherlands)
+B.V.)
+204
+Share in other
+comprehensive income
+(OCI)
+2016-17
+2016-17
+As % of
+consolidated
+profit or (loss)
+(0.3) (228.4)
+210,124.7
+* in Million
+As % of
+consolidated
+net assets
+52.0
+2016-17
+Share in total
+comprehensive income
+Share in profit or (loss)
+ANNEXURE 'A'
+Parent Entity - Sun
+No.
+Name of the entity
+S.
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and
+joint ventures as per Schedule III of Companies Act, 2013:
+Net Assets, i.e., total assets
+minus total liabilities
+(TCI)
+2016-17
+As % of
+1.6
+0.0
+1 Green Eco Development
+Centre Limited
+Indian
+Subsidiaries
+Industries Limited
+Pharmaceutical
+(862.9)
+TCI
+(1.5)
+(634.5)
+OCI
+4.8
+consolidated in Million
+consolidated in Million
+* in Million
+As % of
+for the year ended March 31, 2018
+(0.0)
+Notes to the Consolidated Financial Statements
+ANNUAL REPORT 2017-18
+(10.0)
+(4,468.0)
+10,044.3
+46.2
+(153.6) (643,919.3)
+Intercompany Elimination
+subsidiaries
+27.6
+(20.7)
+Non controlling interest in all
+Ukraine" LLC
+48.0
+0.2
+48.0
+22.6
+9.3 38,841.6
+(477.7)
+1,314.3
+(18.8) (4,945.7)
+43.0 11,358.6
+206
+are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company eliminations /
+consolidation adjustments.
+** With effect from July 27, 2017 Zenotech Laboratories Limited has ceased to be an associate and has become subsidiary of Sun Pharmaceutical Industries Limited.
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the Parent Company, its subsidiaries, associates and joint ventures
+* Includes share of profit and share of TCI, from a joint venture of * 7.6 Million
+# Includes share of profit/loss and share of TCI, from its associates and a joint venture of 262.0 Million
+100.0 26,370.3
+4,754.8
+100.0
+21,615.5
+100.0
+419,847.2
+100.0
+Total
+Adjustments
+and Consolidation
+CONSOLIDATED FINANCIAL STATEMENTS
+(0.5)
+(0.0)
+(0.5)
+0.0
+10.6
+0.0
+Softdeal Trading Company
+7
+Limited
+0.4
+(0.0)
+(0.0)
+(0.0)
+0.1
+0.0
+Skisen Labs Private
+6
+(0.0)
+0.0
+0.4
+127,032.1
+(0.0)
+15.0
+0.1
+15.0
+Germany GmbH
+19 Sun Pharmaceuticals
+(0.0)
+(24.7)
+(0.0)
+(4.5)
+(0.0)
+(4.5)
+France
+20 Sun Pharma Global FZE
+30.3
+Private Limited
+0.4
+0.0
+0.4
+11.1
+0.0
+Faststone Mercantile
+3
+Limited
+7,477.3
+13.3
+(107.0)
+0.8
+7,584.3
+10.9
+197,557.8
+48.9
+Sun Pharma Laboratories
+2
+0.0
+1,073.1
+0.3
+0.3
+0.0
+11.1
+0.0
+Realstone Multitrade
+5
+Private Limited
+0.8
+0.0
+0.8
+0.0
+2,920.2
+0.7
+Neetnav Real Estate
+4
+Company Private Limited
+0.0
+12 Alkaloida Chemical
+Company Zrt.
+12.8
+(Consolidated with a
+0.0
+15 Aditya Acquisition
+Limited
+Industries (Australia) Pty
+(4.6) (1,220.1)
+(1,220.1)
+12.0
+(5.6)
+0.4
+14 Sun Pharmaceutical
+Limited
+95.2
+TCI
+0.4
+95.2
+1,512.7
+0.0
+5.6
+0.0
+(0.9)
+(0.0)
+46.1
+0.0
+17 Sun Pharmaceuticals
+Industries (Europe) B.V.
+62.0
+0.2
+62.0
+0.3
+(66.0)
+(0.0)
+16 Sun Pharmaceutical
+Company Ltd.
+5.6
+OCI
+(0.0)
+consolidated in Million
+* in Million
+Name of the entity
+S.
+Net Assets, i.e., total assets
+ANNEXURE 'A'
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and
+joint ventures as per Schedule III of Companies Act, 2013:
+for the year ended March 31, 2018
+No.
+Notes to the Consolidated Financial Statements
+ANNUAL REPORT 2017-18
+(163.4)
+(0.6)
+(163.4)
+(0.8)
+5.8 24,387.2
+CONSOLIDATED FINANCIAL STATEMENTS
+minus total liabilities
+2017-18
+Share in profit or (loss)
+As % of
+As % of
+As % of
+consolidated
+profit or (loss)
+0.4
+0.0
+0.0
+13 Sun Pharmaceuticals UK
+net assets
+* in Million
+consolidated
+As % of
+2017-18
+(TCI)
+Share in total
+comprehensive income
+Share in other
+comprehensive income
+(OCI)
+2017-18
+2017-18
+consolidated in Million
+(0.9)
+Italia S.R.L.
+18 Sun Pharmaceuticals
+(441.5)
+(0.2)
+(38.4)
+(0.1)
+(38.4)
+Inc.
+(0.1)
+24 Sun Pharmaceuticals
+4.4
+0.0
+0.0
+0.0
+0.0
+Korea Ltd.
+0.0
+23 Sun Pharma Philippines,
+Ltd.
+(0.2)
+Joint venture)
+21 Sun Pharmaceuticals
+(0.0)
+(0.0)
+0.0
+0.1
+0.0
+0.1
+(SA) (Pty) Ltd.
+22 Sun Global Canada Pty.
+(0.0)
+(1.4)
+(0.0)
+(0.2)
+(0.0)
+25 Sun Global
+0.0
+180.9
+(0.0)
+28 Sun Laboratories FZE
+29 Taro Pharmaceutical
+(0.1)
+(265.1)
+0.4
+79.9
+0.3
+34.8
+146,191.6
+16,551.7
+45.0
+2,140.0
+70.9
+0.1
+(207.2)
+(0.0)
+FZE
+3,368.8*
+2.2
+2.2
+(0.7)
+(0.0)
+(0.7)
+Development FZE
+26 Sun Pharma Japan Ltd.
+(0.4)
+(1,480.3)
+(4.4)
+(950.6)
+(3.6)
+(950.6)
+27 Sun Pharma HealthCare
+0.0
+183.4
+0.0
+0.0
+required approvals and accordingly, the consolidated financial
+statements do not reflect the impact, if any, on account of the
+schemes.
+76.6
+(6,896.6)
+55 Ranbaxy Europe Limited
+2,832.7
+0.7
+54 Ranbaxy Holdings (U.K.)
+Limited
+55.7
+0.2
+0.0
+55.7
+1,383.9
+0.3
+53 Ranbaxy (U.K.) Limited
+S.L.U.
+62.9
+0.2
+0.3
+11.8
+0.0
+49,434.6
+(0.0)
+(72.9)
+(0.0)
+58 Sun Pharmaceuticals
+30.0
+0.1
+30.0
+0.1
+208.0
+0.0
+57 Ranbaxy (Thailand) Co.,
+Ltd.
+56 Sun Pharma Holding USA
+Inc (Consolidated with its
+Subsidiaries, its associates
+and a Joint venture)
+(0.1)
+(20.7) (5,466.9)#
+(0.0)
+(0.1)
+(5,466.9)#
+(25.3)
+62.9
+(0.1)
+0.3
+0.1
+1.4
+1,225.3
+0.3
+49 Ranbaxy South Africa (Pty)
+(511.8)
+(2.4)
+307.9
+994.4
+48 JSC Biosintez
+Known ZAO Ranbaxy)
+57.8
+0.2
+57.8
+2,174.2
+0.2
+(1.9)
+1.2
+(511.8)
+307.9
+Limited (Consolidated with
+52 Laboratorios Ranbaxy,
+(Pty) Limited
+19.8
+0.0
+51 Be-Tabs Investments
+Limited
+Pharmaceuticals (Pty)
+183.1
+0.7
+183.1
+0.8
+(979.5)
+(0.2)
+50 Ranbaxy
+its Subsidiary)
+355.3
+(31.2)
+(0.1)
+(31.2)
+44.0
+(114.3)
+30,612.8
+(0.2)
+12.6 (1,683.7)
+(114.3)
+51.4 28,929.1
+Industries Ltd. (TARO)
+(0.2)
+(Consolidated with its
+32
+Alkaloida Sweden AB
+0.0
+33 Sun Pharma Switzerland
+(0.0)
+20.0
+(21.8)
+Subsidiaries)
+(344.7)
+134,415.9
+33.2
+(0.1)
+(0.1)
+(443.6)
+(0.2)
+(117.8)
+(0.2)
+(117.8)
+29 Sun Pharma HealthCare
+0.0
+181.0
+0.0
+2.5
+0.0
+2.5
+FZE
+30 Sun Laboratories FZE
+31 Taro Pharmaceutical
+0.0
+(0.0)
+9.6
+(27.8)
+0.0
+(0.0)
+9.6
+(27.8)
+0.0
+31
+Sun Pharma Switzerland
+0.6
+38.3
+2,631.0
+0.1
+14.3
+0.1
+0.2
+158.6
+0.0
+59 "Ranbaxy Pharmaceuticals
+Morocco LLC)
+known as Ranbaxy
+Morocco LLC (Formerly
+Alkaloida Sweden AB
+8.2
+30
+Industries Ltd. (TARO)
+(Consolidated with its
+Ltd.
+34 Ocular Technologies SARL
+0.6
+35 Sun Pharma Holdings
+50.4
+2,626.6
+203,802.5
+3.9
+(0.0)
+2,713.8
+4.8
+2,713.8
+(9.7)
+(0.0)
+(9.7)
+208
+79.9
+18,691.7
+Subsidiaries)
+28 Sun Pharma Japan Ltd.
+2,174.2
+1,027.0
+(22.0)
+(0.1)
+382.7
+0.1
+37 Sun Pharma Egypt
+Canada Inc.
+(0.1)
+(62.6)
+(62.6)
+(0.3)
+278.2
+0.1
+36 Ranbaxy Pharmaceuticals
+Ltda.
+(0.2)
+(22.0)
+Limited LLC (Formerly
+known as Ranbaxy
+2.5
+0.0
+2.5
+0.0
+93.8
+0.0
+39 Office Pharmaceutique
+(7.3)
+(0.0)
+(7.3)
+(0.0)
+(18.7)
+(0.0)
+38 Rexcel Egypt LLC
+Egypt Ltd)
+(89.2)
+Industriel Et Hospitalier
+(0.3)
+(0.4)
+(0.0)
+33 Sun Pharma East Africa
+(29.5)
+(0.1)
+(29.5)
+(0.1)
+(148.8)
+204,008.4
+32 Sun Pharma Holdings
+Ltd.
+(4.7)
+(0.0)
+(19,760.5)
+(4.7)
+48.6
+(0.3)
+(73.6)
+(0.3)
+(1,103.7)
+(0.3)
+35 Ranbaxy Farmaceutica
+Pty Ltd)
+as Ranbaxy Australia
+Ltd (Formerly known
+80.2
+0.3
+80.2
+0.4
+(348.2)
+(0.1)
+34 Sun Pharma ANZ Pty
+Limited
+(73.6)
+(89.2)
+205
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+(125.0)
+(0.0)
+44 Sun Pharmaceutical
+(6.5)
+(0.0)
+(6.5)
+(0.1)
+(0.0)
+0.0
+43 Ranbaxy Italia S.P.A.
+(14.7)
+(0.1)
+(14.7)
+(0.1)
+0.7
+(29.6)
+(0.1)
+(29.6)
+0.2
+47 AO Ranbaxy (Formerly
+14,079.7
+3.4
+46 Terapia S.A.
+11.8
+0.0
+11.8
+0.1
+194.8
+0.0
+45 Ranbaxy (Poland) SP. Z O.O.
+(Peru) S.A.C.)
+known as Ranbaxy - PRP
+Industries S.A.C. (Formerly
+571.0
+0.1
+42 Ranbaxy Ireland Limited
+2.0
+2017-18
+(TCI)
+Share in total
+comprehensive income
+Share in other
+comprehensive income
+(OCI)
+2017-18
+Share in profit or (loss)
+ANNEXURE 'A'
+2017-18
+2017-18
+Net Assets, i.e., total assets
+minus total liabilities
+No.
+Name of the entity
+S.
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and
+joint ventures as per Schedule III of Companies Act, 2013:
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+As % of
+10.1
+0.3
+consolidated
+net assets
+41 Ranbaxy GmbH
+54.1
+0.2
+54.1
+TCI
+OCI
+consolidated in Million
+consolidated in Million
+* in Million
+As % of
+As % of
+As % of
+consolidated
+profit or (loss)
+0.3
+1,024.6
+0.2
+40 Basics GmbH
+* in Million
+FZE
+0.0
+(0.0)
+C.V.
+6
+Sun Pharmaceutical Peru
+(0.0)
+(150.0)
+(0.0)
+0.2
+(19.9)
+(19.9)
+S.A.C.
+7
+OOO "Sun Pharmaceutical
+(0.0)
+(182.6)
+(0.0)
+0.0
+SPIL De Mexico S.A. DE
+5
+0.3
+185.1
+I
+Brasil Ltda.
+4
+Sun Pharma De Mexico
+0.2
+758.1
+0.2
+118.5
+0.3
+185.1
+0.2
+118.5
+S.A. DE C.V.
+0.0
+12.7
+0.0
+12.7
+10 Ranbaxy (Malaysia) SDN.
+0.1
+333.4
+0.1
+86.6
+0.2
+86.6
+BHD.
+11 Ranbaxy Nigeria Limited
+0.1
+551.5
+(0.2)
+(114.2)
+(0.2)
+(114.2)
+Generiques
+(2,207.3)
+(173.6)
+(173.6)
+Industries" Limited
+8
+Sun Pharma De Venezuela,
+(0.4)
+(1,444.5)
+(0.5)
+(325.3)
+(0.6)
+(325.3)
+C.A.
+9
+Ranbaxy Pharmacie
+(0.4)
+(1,658.4)
+(0.2)
+(0.3)
+207
+(0.5)
+3
+45,216.7
+Year ended
+March 31, 2017
+* in Million
+March 31, 2018
+Year ended
+Total comprehensive income for the year
+60,748.8
+Profit after tax
+Total income
+Consolidated statement of profit and loss of TARO Group
+(13,248.8)
+(277.6)
+34,063.2
+113,879.1
+43,974.4
+116,578.1
+(350.4)
+(14,010.4)
+Total expenses
+26,101.3
+(23,243.0)
+16,551.7
+29,345.5
+(0.7)
+(7,899.4)
+21,318.0
+(15,576.7)
+73 The Board of Directors of the Company at its meeting held
+on May 25, 2018, approved the Scheme of Arrangement
+between the Company, Sun Pharma (Netherlands) B.V. and
+Sun Pharmaceutical Holdings USA Inc. (both being wholly
+owned subsidiaries of the Company) which inter-alia, envisages
+spin-off of the specified investment undertaking of the
+Company. Further, the Board of Directors of the Company
+at its meeting held on November 14, 2017 had approved
+the Scheme of Arrangement between Company and Sun
+Pharma Global FZE (wholly owned subsidiary of the Company)
+which inter-alia, envisages demerger of unbranded generic
+pharmaceutical undertaking of Sun Pharma Global FZE into the
+Company. The above schemes shall be effective post receipt of
+There has been no dividend paid by TARO during the year ended March 31, 2018 and March 31, 2017.
+Net cash used in financing activities
+Net cash used in investing activities
+Net cash generated from operating activities
+Consolidated cash flows information of TARO Group
+Year ended
+March 31, 2017
+* in Million
+Year ended
+March 31, 2018
+30,612.9
+25,241.9
+18,691.8
+Private Limited
+8
+Universal Enterprises
+0.0
+0.3
+219.2
+0.4
+219.2
+(Bangladesh) Limited
+2
+Sun Pharmaceutical
+3.1
+12,430.7
+(2.3) (1,594.3)#
+(2.8) (1,594.3)#
+Industries, Inc.
+(Consolidated with its
+Subsidiaries, its associates
+and a Joint venture)
+0.2
+Sun Farmaceutica Do
+Sun Pharmaceutical
+Foreign
+5.3
+0.0
+0.0
+0.0
+0.0
+Private Limited
+9
+Sun Pharmaceutical
+(0.0)
+(11.0)
+(0.0)
+(13.5)
+(0.0)
+(13.5)
+Medicare Limited
+1
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+942.2
+Notes to the Consolidated Financial Statements
+(0.0)
+(4.3)
+(0.0)
+(4.3)
+22
+22
+(17.1)
+Sun Pharma Global FZE
+123,500.6
+21.0 14,620.6*
+27.4
+(3,657.4)
+19.5 10,963.2*
+(Consolidated with a Joint
+30.5
+(0.0)
+(2.4)
+(0.0)
+(1.5)
+S.R.L.
+19 Sun Pharmaceuticals
+Spain, S.L.U.
+(0.0)
+(5.2)
+(0.0)
+(5.2)
+20 Sun Pharmaceuticals
+Germany GmbH
+21 Sun Pharmaceuticals
+France
+(0.0)
+(186.0)
+(0.0)
+(2.4)
+venture)
+23 Sun Pharmaceuticals SA
+(0.0)
+(0.1)
+Inc.
+26 Sun Pharmaceuticals
+0.0
+4.2
+(0.0)
+(0.3)
+(0.0)
+(0.3)
+Korea Ltd.
+27 Sun Global Development
+0.0
+181.3
+PHARMA
+(0.0)
+(0.7)
+(152.5)
+(0.0)
+(0.3)
+(0.2)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+24 Sun Global Canada Pty.
+(0.0)
+(1.1)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+Ltd.
+25 Sun Pharma Philippines,
+(0.1)
+(419.5)
+(152.5)
+(1.5)
+(Pty) Ltd
+40.5
+consolidated in Million
+OCI
+TCI
+12 Sun Pharma (Netherlands)
+B.V. (Formerly known as
+13.2
+53,421.2
+1.5 1,079.2
+1.9 1,079.2
+Ranbaxy (Netherlands)
+B.V.)
+13
+Alkaloida Chemical
+Company Zrt.
+6.1 24,524.0
+(1.9) (1,356.0)
+(2.4) (1,356.0)
+consolidated in Million
+14 Sun Pharmaceuticals UK
+As % of
+Share in total
+comprehensive income
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and
+joint ventures as per Schedule III of Companies Act, 2013:
+ANNEXURE 'A'
+Net Assets, i.e., total assets
+minus total liabilities
+(0.0)
+for the year ended March 31, 2018
+Share in profit or (loss)
+S.
+Name of the entity
+No.
+2016-17
+As % of
+consolidated
+* in Million
+net assets
+2016-17
+As % of
+consolidated in Million
+profit or (loss)
+Share in other
+comprehensive income
+(OCI)
+2016-17
+(TCI)
+2016-17
+(0.0)
+As % of
+(0.0)
+0.0
+5.6
+0.0
+5.6
+Company Ltd.
+17
+6.0
+(0.0)
+0.0
+26.9
+0.0
+(91.4)
+26.9
+Industries (Europe) B.V.
+(110.5)
+0.0
+Sun Pharmaceutical
+Limited
+(0.8)
+(0.0)
+16 Aditya Acquisition
+(0.8)
+Limited
+0.0
+15 Sun Pharmaceutical
+0.5
+18 Sun Pharmaceuticals Italia
+1,975.6
+(0.5)
+(360.9)
+(0.6)
+(360.9)
+Industries (Australia) Pty
+(5.8)
+53.8
+48.0
+1,224.6
+100.00%
+100.00%
+31.2
+6.8
+38.0
+37.7
+208.4
+72.7
+(159.5) 1,236.2 1,308.9
+100.00%
+86.8
+57 "Ranbaxy Pharmaceuticals Ukraine" LLC
+58 Sun Pharmaceuticals Morocco LLC
+(Formerly known as Ranbaxy Morocco
+7.09
+MAD
+24.03.2015
+98.0
+2.45
+UAH
+731.9
+24.03.2015
+60 Ranbaxy Holdings (U.K.) Limited
+61 Ranbaxy Pharmacie Generiques
+PEN
+167.3
+167.3
+65.2
+100.00%
+3,185.6
+0.8
+91.88 2,807.4 140.7 2,948.9
+80.47 2,007.6 (4,206.7) 986.5
+GBP
+EURO
+24.03.2015
+24.03.2015
+24.03.2015
+215
+100.00%
+(29.8)
+(29.8)
+301.3
+354.2
+229.7
+(211.8)
+87.3
+20.11
+59 Sun Pharmaceutical Industries S.A.C.
+(Formerly known as Ranbaxy - PRP
+(Peru) S.A.C.)
+3.2
+24.03.2015
+100.00%
+100.00%
+(29.7)
+(29.7)
+757.2
+USD 64.93 222,115.3 (18,087.6) 204,784.9
+USD 64.93 0.0 5,469.1 7,217.9
+USD
+64.93 584.5
+321.9 1,993.0
+KES
+0.64
+0.1 (105.6)
+EURO 80.47 392.3 372.6
+EURO 80.47 2.0
+56 Ranbaxy GmbH
+24.03.2015
+55 Basics GmbH
+13.06.2014
+1,748.8
+54 Sun Pharma East Africa Limited
+53 PI Real Estate Ventures LLC
+15.07.2014
+52 Pharmalucence, Inc.
+06.08.2015
+51 Sun Pharma Holdings
+1,501.9
+(2.1)
+100.00%
+(2.1)
+15.07.2014
+5.2
+2,423.7
+(69.7)
+54.2
+35.3
+89.5
+3,164.3
+5,320.2 4,555.3
+100.00%
+(53.4)
+(22.4)
+(75.8)
+353.9
+363.3
+358.6
+100.00%
+106.7
+28.4
+135.1
+214.3
+1,086.6
+100.00%
+423.6
+464.1
+(273.6)
+11.5
+100.00%
+1.9
+1,617.1
+1,759.6
+2,544.6
+688.0
+97.0
+5.54
+ZAR
+24.03.2015
+(9.6)
+66 Ranbaxy South Africa (Pty) Limited
+360.9
+146.3
+507.2
+6,408.8
+2,399.7
+100.00%
+195.2
+195.2
+6,836.0
+70.00%
+100.00%
+100.00%
+24.03.2015
+(19.6)
+5.6
+12.6
+0.9
+3.67
+EGP
+24.03.2015
+68 Rexcel Egypt Company LLC
+known as Ranbaxy Egypt Ltd)
+67 Sun Pharma Egypt Limited LLC (Formerly
+100.00%
+4.6
+(14.1)
+360.4
+176.5
+563.7
+(96.0)
+483.2
+3.67
+EGP
+(18.7)
+(273.6)
+(21.9)
+(20.3)
+% of
+Proposed
+Profit
+Provision
+for
+Taxation
+Profit
+/ (Loss)
+before
+Taxation
+in
+Subsidiary
+Investment
+Investment Turnover
+Other than
+PART "A": Subsidiaries
+Total
+Liabilities
+/ (Loss) Dividend Shareholding
+Total
+Assets
+when
+subsidiary
+was acquired
+Date since
+Sr Name of the subsidiary company
+No
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+in Million
+Pursuant to First Proviso to Sub-Section (3) of Section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement Containing Salient Features of the Financial Statement of Subsidiaries / Associate Companies/ Joint Ventures
+FORM AOC - 1
+216
+Reporting Rate Capital Reserve
+Currency
+1.6
+after
+62 Office Pharmaceutique Industriel Et
+Hospitalier
+1,734.7
+0.1 2,222.8 2,218.7
+(2,136.5) 6,406.5 7,434.6
+597.7 3,008.5
+5.54
+EURO 80.47 4.0
+ZAR
+5.54 1,108.4
+11.1
+ZAR
+24.03.2015
+65 Sonke Pharmaceuticals Proprietary
+Limited
+24.03.2015
+64 Ranbaxy Pharmaceuticals (Pty) Limited
+Taxation
+24.03.2015
+100.00%
+2.5
+2.5
+278.7
+203.5
+297.3
+(13.2)
+EURO 80.47 107.0
+24.03.2015
+63 Ranbaxy Italia S.P.A.
+14.0
+EURO 80.47
+6.8
+(0.0)
+0.0
+91.88
+GBP
+20.09.2010
+39 Taro Pharmaceuticals (UK) Ltd.
+74.82%
+154.6
+49.1
+842.3
+203.7
+515.6
+1,094.1
+578.5
+0.0
+64.93
+USD
+20.09.2010
+38 Taro International Ltd.
+74.82%
+1,698.4
+(304.0)
+842.3
+40 Taro Pharmaceuticals Canada, Ltd.
+17.0
+17.0
+696.0
+104.5
+143.0
+(17.3)
+55.8
+7.83
+SEK
+74.82%
+22.11.2012
+74.82%
+0.1
+0.1
+0.1
+0.1
+0.0
+50.33
+CAD
+20.09.2010
+41 Alkaloida Sweden AB
+100.00%
+(304.0)
+40.3
+50.33 12,148.2
+64.93 9.4
+64.93 0.0
+CAD
+USD
+USD
+EURO 80.47
+20.09.2010
+20.09.2010
+35 Taro Pharmaceuticals North America, Inc.
+36 Taro Pharmaceuticals Europe B.V.
+20.09.2010
+34 Taro Pharmaceuticals U.S.A., Inc.
+20.09.2010
+33 Taro Pharmaceuticals Inc.
+1.4
+Investment
+Investment Turnover
+Other than
+PART "A": Subsidiaries
+Total
+Total
+Assets Liabilities
+Reporting Rate Capital Reserve
+Currency
+Date since
+when
+subsidiary
+was acquired
+Sr Name of the subsidiary company
+No
+in Million
+CONSOLIDATED FINANCIAL STATEMENTS
+24.3
+ANNUAL REPORT 2017-18
+Profit
+/ (Loss)
+(40.3)
+2.6
+in
+Subsidiary
+25,308.2
+20.09.2010
+37 Taro Pharmaceuticals Ireland Ltd
+74.82%
+40.6
+74.82%
+12,035.2
+74.82%
+2,889.6 (2,226.8)
+662.8
+12,035.2
+40.6
+79,783.5 95,373.7 3,442.0
+(1,730.1) 31,562.4 33,283.1
+32,776.4 32,776.4
+44.2
+40.2
+74.82%
+1,182.6 4,827.1
+6,009.7
+17,627.8
+34,905.9
+after
+Taxation
+Proposed % of
+Dividend Shareholding
+Profit
+/ (Loss)
+Provision
+for
+Taxation
+before
+Taxation
+4,310.8
+(5.4)
+42 Dusa Pharmaceuticals, Inc.
+USD
+01.04.2012
+48 Softdeal Trading Company Private
+Limited
+100.00%
+(0.0)
+(0.0)
+(0.0)
+0.0
+0.1
+0.1
+INR
+(163.6)
+1.00
+INR
+01.04.2012
+100.00%
+0.4
+0.1
+0.5
+0.1
+11.6
+163.6
+11.4
+1.00
+10.9
+68.26
+CHF
+10.06.2013
+100.00%
+(0.0)
+(0.0)
+0.0
+5.3
+0.8
+0.1
+4.5
+INR
+31.08.2012
+49 Universal Enterprises Private Limited
+50 Sun Pharma Switzerland Ltd.
+100.00%
+0.4
+0.1
+0.5
+0.0
+11.0
+1.00
+19.12.2012
+0.1
+INR
+01.04.2012
+100.00%
+1,676.4 (65.4)
+1,611.0
+4,380.5
+84.1
+9,127.2 9,211.3
+0.0
+64.93
+INR
+USD
+43 Mutual Pharmaceutical Company Inc.
+44 Faststone Mercantile Company Private
+Limited
+100.00%
+(1,360.9) 3,035.7
+1,674.8
+6,090.7
+2,421.3
+8,105.4 10,527.3
+0.6
+64.93
+05.02.2013
+1.00
+1.00
+11.4
+01.04.2012
+100.00%
+0.6
+0.2
+0.8
+1.3
+156.4
+3,077.3
+2,920.8
+0.1
+0.1
+INR
+01.04.2012
+45 Neetnav Real Estate Private Limited
+46 Realstone Multitrade Private Limited
+47 Skisen Labs Private Limited
+100.00%
+0.4
+0.1
+0.5
+0.0
+11.5
+1.00
+(2.6)
+1
+(7.4)
+Books of accounts and other related records/documents of the overseas subsidiaries of the Zenotech Laboratories Limited were missing and due to non-availability of those records/
+information, Zenotech Laboratories Limited is unable to prepare consolidated accounts.
+With effect from April 01, 2017 vide certificate dated August 09, 2017 Ocular Technologies SARL has been merged with Sun Pharma Switzerland Limited.
+With effect from July 27, 2017 Zenotech Laboratories Limited has ceased to be an associate and has become subsidiary of Sun Pharmaceutical Industries Limited.
+With effect from December 21, 2017 S & I Ophthalmic LLC has been dissolved.
+Taro Pharmaceutical India Private Limited has been liquidated on April 04, 2017.
+Foundation for Disease Elimination and Control of India (FDEC), a wholly owned subsidiary incorporated in India on September 21, 2016 by the Company as part of its Corporate Social
+Responsibility (CSR) initiative. FDEC has entered into an MOU with Indian Council of Medical Research (ICMR) and Madhya Pradesh State Government to undertake the Mandla Malaria
+Elimination Demonstration Project with a goal to eliminate Malaria in the state. FDEC is a Section 8 company not considered for consolidation since it can apply its income for charitable
+purposes only and can raise funds/contribution independently.
+9
+7
+56980 °
+4
+With effect from August 01, 2017, Ranbaxy Pharmaceuticals, Inc. and Ranbaxy Laboratories, Inc. has been merged with Sun Pharmaceutical Industries Inc.
+Entities at Sr. No. 93 have been incorporated / acquired during the year ended March 31, 2018.
+In respect of entities at Sr. Nos. 4 to 8, 57, 79, 89 and 90 the reporting date is as of December 31, 2017 and different from the reporting date of the Parent Company. Adjustments have
+been made for significant transactions of these subsidiaries for the periods from January 01, 2017 to March 31, 2017 and January 01, 2018 to March 31, 2018, on the basis of their
+management accounts for the said periods.
+2
+0.0' represents amount less than 0.05 Million and rounded off
+1
+Note:
+57.56%
+100.00%
+(61.4)
+(61.4)
+(118.5)
+3
+(118.5)
+With effect from May 20, 2018 Sun Pharmaceuticals UK Limited has been dissolved.
+11
+Pursuant to First Proviso to Sub-Section (3) of Section 129 of Companies Act, 2013 with the Rule 5 of
+Companies (Accounts) Rules, 2014
+FORM AOC - 1
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+217
+The above does not include Taro Pharmaceutical Laboratories Inc., 2 Independence Way LLC, URL PharmaPro LLC and Dungan Mutual Associates LLC as they have no operation and does
+not have any Assets, Liabilities or Equity as on the close of their Financial Year.
+Fraizer Healthcare VII, L.P. and Versant Venture Capital V, L.P. were treated as associates till March 31, 2017 and are now being classified and measured as investments at fair value through
+profit or loss.
+19
+18
+10
+17. With effect from June 19, 2017 MSD - Sun LLC is liquidated.
+3 Skyline LLC and One Commerce drive LLC are being consolidated with Taro Pharmaceuticals U.S.A., Inc.
+Ranbaxy Europe Limited is under Liquidation.
+CONSOLIDATED FINANCIAL STATEMENTS
+15.
+14
+Taro Pharmaceuticals (UK) Limited is under Liquidation.
+13
+Taro Pharmaceuticals Ireland Limited is under Liquidation.
+12
+16. With effect from April 25, 2017 Insite Vision Ltd. has been dissolved.
+Statement Containing Salient Features of the Financial Statement of Subsidiaries / Associate Companies/ Joint Ventures
+111.4
+1,199.2
+(190.1) 817.4
+(86.4) 3,077.1
+18.11.2016
+91 Sun Pharmaceuticals Holdings USA, Inc
+92 Foundation for Disease Elimination and
+Control of India
+Taxation
+after
+% of
+Shareholding
+Proposed
+Dividend
+Profit
+/ (Loss)
+Provision
+for
+Taxation
+Profit
+/ (Loss)
+before
+Taxation
+USD
+in
+Subsidiary
+Investment Turnover
+Other than
+PART "A": Subsidiaries
+Total
+Liabilities
+Total
+Assets
+Date since Reporting Rate Capital Reserve
+Currency
+when
+subsidiary
+was acquired
+Sr Name of the subsidiary company
+No
+ANNUAL REPORT 2017-18
+* in Million
+Pursuant to First Proviso to Sub-Section (3) of Section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement Containing Salient Features of the Financial Statement of Subsidiaries / Associate Companies/ Joint Ventures
+Investment
+397.2
+3,161.0
+64.93
+21.09.2016
+610.3
+2.5
+1.00
+INR
+16.01.2017
+94 Sun Pharmaceutical Medicare Limited
+1.00
+INR
+27.07.2017
+93 Zenotech Laboratories Ltd
+0.0
+100.00%
+5.1
+42.8
+0.8
+100.00%
+20,697.6 20,697.6
+4.8
+3.9
+0.1
+1.00
+INR
+5.1
+FORM AOC - 1
+Part "B": Associate Companies and Joint Ventures
+Jointly Controlled Entity
+6
+Balance Sheet
+as per latest audited
+(582.2)
+0.2
+0.0
+1,003.5
+55.7
+Networth attributable to Shareholding
+Profit/Loss for the year
+5
+NA
+NA
+NA
+NA
+NA
+NA
+Reason why the associate/joint venture
+4
+influence
+is not consolidated
+NA
+i. Considered in Consolidation
+ii. Not Considered in Consolidation
+Pursuant to First Proviso to Sub-Section (3) of Section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement Containing Salient Features of the Financial Statement of Subsidiaries / Associate Companies/ Joint Ventures
+SUNIL R. AJMERA
+Company Secretary
+C. S. MURALIDHARAN
+Chief Financial Officer
+Wholetime Director
+Mumbai, May 25, 2018
+SAILESH T. DESAI
+Wholetime Director
+SUDHIR V. VALIA
+Managing Director
+DILIP S. SHANGHVI
+7.6
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+(514.7)
+193.2
+0.0
+(128.6)
+132.1
+(0.0)
+(250.1)
+(1,889.1)
+(15.4)
+(15.4)
+9.3
+218
+* in Million
+NA
+ΝΑ
+31-Mar-18
+13.03.2014
+Medinstill LLC
+Trumpcard
+Advisors and
+Finvest LLP
+31-Mar-18
+31.03.2017
+31-Mar-18
+09.10.2015
+31-Dec-17
+29.12.2016
+13.02.2014 28.10.2013
+31-Dec-17
+Inc.
+Generic Solar
+Power LLP
+2
+Pharmaceuticals
+S&I
+Ophthalmic
+LLC
+GmbH
+31-Dec-17
+Latest audited Balance Sheet Date
+Date of acquisition
+Biotechnology
+No
+Name of Associates/Joint Ventures
+Artes
+Sr.
+Associates
+SC
+NA
+Shares of Associate/Joint Ventures held
+No.
+NA
+ΝΑ
+Description of how there is significant
+3
+19.99%
+40.61%
+28.76%
+11.69%
+50.00%
+by the company on the year end
+45.00%
+Joint Venture
+1,999
+1,436.4
+NA
+444.6
+28,760
+0.0
+867.6
+13,000,000
+NA
+15,853
+252.8
+Amount of Investment in Associates/
+Extend of Holding %
+(7.4)
+85.10%
+100.00%
+USD
+24.03.2015
+76 Ranbaxy Pharmaceuticals, Inc.
+139.7
+497.7
+354.8
+3.2
+64.93
+USD
+64.93
+24.03.2015
+1,290.3
+990.0
+782.1
+214,538.0 207,397.9
+80.8
+80.8
+-
+64.93
+USD
+24.03.2015
+74 Ranbaxy Laboratories, Inc.
+7,124.6
+75 Ranbaxy Signature LLC
+15.5
+0.0
+4.8
+(364.8)
+108.5
+750.8
+642.3
+64.93
+USD
+24.03.2015
+77 Ranbaxy Inc.
+100.00%
+4.8
+(3,117.3)
+411.6
+100.00%
+(568.7)
+100.00%
+(1,253.3) 4,064.2
+100.00%
+30.9
+-
+30.9
+15,381.5
+2,810.9
+3,587.0 (568.7)
+528.7
+411.6
+4,065.3 (3,117.3)
+67.50%
+(148.1) (216.7)
+64.93
+24.03.2015
+50.1
+244.9
+112.8
+82.0
+19.11
+PLN
+24.03.2015
+70 Ranbaxy (Poland) SP. Z O.O.
+100.00%
+552.9
+59.8
+76.9
+1,898.9
+2,605.7 1,221.9
+(614.5)
+91.88 1,998.3
+GBP
+24.03.2015
+69 Ranbaxy (U.K.) Limited
+100.00%
+17.1
+USD
+17.4
+12.6
+73 Ohm Laboratories, Inc.
+(30.9)
+238.8
+2.08
+THB
+24.03.2015
+72 Ranbaxy (Thailand) Co., Ltd.
+85.31%
+(433.8)
+4.8
+5.1
+1,024.0
+2,123.1 1,914.5
+200.4
+8.2
+0.21
+NGN
+24.03.2015
+71 Ranbaxy Nigeria Limited
+100.00%
+(428.7)
+8.2
+100.00%
+24.03.2015
+(66.6)
+1,181.0
+164.9
+877.8
+599.6
+14,702.3 17,868.5 2,734.1
+19.8
+19.8
+50.33 113.3
+17.27 432.1
+5.54
+0.0
+CAD
+RON
+ZAR
+24.03.2015
+24.03.2015
+87 Be- Tabs Investments (Pty) Limited
+88 Sun Pharma (Netherlands) B.V (Formerly
+known as Ranbaxy (Netherlands) B.V.)
+89 Insite Vision Incorporated
+90 JSC Biosintez
+24.03.2015
+(66.6)
+86 Terapia S.A.
+100.00%
+83.1
+83.1
+2,163.3
+1,322.4
+100.00%
+(0.0)
+(0.0)
+100.00%
+24.03.2015
+(73.7)
+100.00%
+350.7
+1,192.6 (968.2)
+72.5
+224.4
+80.7
+2,906.1
+2.3
+100.00%
+(581.1)
+95.5
+(485.6)
+0.0
+11,851.9 2,643.3
+923.6
+0.0
+0.3
+64.93
+1.13
+USD
+RUB
+02.11.2015
+19.12.2016
+100.00%
+(0.0)
+(0.0)
+96.81%
+2,292.6
+USD 64.93 44,039.3 8,655.3 53,355.2 660.6
+(349.9) 1,264.3 1,614.2
+723.1 4,700.1 3,976.7
+78 Ranbaxy Ireland Limited
+48.2
+1,716.4
+71.6
+75.6
+147.2
+5,999.8
+4,038.9 3,019.7
+835.4
+183.8
+1.13
+100.00%
+100.00%
+(15.7)
+(8.1)
+6.1
+2.7
+572.9
+(2.0)
+80.47 572.2
+EURO
+RUB
+24.03.2015
+79 AO Ranbaxy (Formerly Known ZAO
+7.6
+(25.5)
+Ranbaxy)
+81 Ranbaxy (Malaysia) SDN. BHD.
+90.74%
+495.6
+495.6
+2,006.2
+100.00%
+66.7
+8.6
+75.3
+1,695.2
+80 Laboratorios Ranbaxy, S.L.U.
+1,597.2 1,235.5
+(1,214.8)
+80.47 80.5
+16.80 139.4
+19.52 339.0
+91.88 0.0
+49.78 866.2
+EURO
+MYR
+BRL
+GBP
+AUD
+24.03.2015
+84 Sun Pharma ANZ Pty Ltd (Formerly
+known as Ranbaxy Australia Pty Ltd)
+85 Ranbaxy Pharmaceuticals Canada Inc.
+24.03.2015
+83 Ranbaxy Europe Limited
+24.03.2015
+24.03.2015
+24.03.2015
+82 Ranbaxy Farmaceutica Ltda.
+281.2
+740.8 1,641.3 761.1
+(1,437.9) 1,060.0 2,158.9
+0.0
+973.8
+FORM AOC - 1
+100.00%
+74.82%
+0.7
+0.0
+MSD - Sun LLC
+1
+method)
+(Investment as per equity
+Foreign Joint Venture
+subsidiaries
+(12.9) (7,284.3)
+(11.5) 1,534.3
+(Consolidated with its
+subsidiary)
+(12.7) (8,818.6)
+9.4
+Non controlling interest in all
+Ukraine" LLC
+27.1
+0.0
+27.1
+0.0
+107.4
+0.0
+63 "Ranbaxy Pharmaceuticals
+37,908.6
+Intercompany Elimination and
+(166.3) (673,076.4)
+24.8 17,348.4
+Key Managerial Personnel (KMP)
+a
+Names of related parties where there are transactions and description of relationships
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+་་
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+210
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the Parent Company, its subsidiaries, associates and joint ventures
+are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company eliminations/
+consolidation adjustments.
+* Includes share of loss and share of TCI, from a joint venture of * 2.5 Million.
+# Includes share of profit and share of TCI, from its associates and joint venture of 101.8 Million.
+100.0 56,306.1
+100.0 (13,337.6)
+69,643.7
+100.0
+404,305.3
+100.0
+Total
+Consolidation Adjustments
+15.1 8,561.6
+65.9 (8,786.8)
+81.7
+0.1
+81.7
+TCI
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and
+joint ventures as per Schedule III of Companies Act, 2013:
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+209
+Co., Ltd.
+(91.1)
+(0.2)
+(91.1)
+(0.1)
+160.8
+0.0
+61 Ranbaxy (Thailand)
+Holdings USA, INC
+0.1
+0.0
+0.1
+0.0
+20,673.7
+5.1
+60 Sun Pharmaceuticals
+with its Subsidiaries)
+S.
+b
+Name of the entity
+62
+OCI
+consolidated in Million
+consolidated in Million
+* in Million
+As % of
+As % of
+(TCI)
+2016-17
+(OCI)
+2016-17
+2016-17
+As % of
+consolidated
+profit or (loss)
+0.1
+(40.2)
+(0.0)
+net assets
+* in Million
+As % of
+consolidated
+2016-17
+Share in total
+comprehensive income
+Share in other
+comprehensive income
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+ANNEXURE 'A'
+Morocco LLC)
+known as Ranbaxy
+Sun Pharmaceuticals
+Morocco LLC (Formerly
+(TARO)
+5,297.3
+Dilip S. Shanghvi
+Sailesh T. Desai
+38.8
+103.4
+79,876.2
+885.4
+650.2
+885.4
+650.2
+15.3
+308.3
+12.9
+79,876.2
+28.2
+Others
+Associates
+Sale of goods
+Others
+Purchase of property, plant and equipment and other intangible assets
+Others
+Associates
+Purchase of goods
+March 31, 2017
+March 31, 2018
+308.3
+64.6
+Sale of property, plant and equipment and other intangible assets
+0.5
+Unconsolidated subsidiary
+14.9
+62.2
+0.0
+Key managerial personnel Nil (March 31, 2017: ₹45,815)
+Others
+2.8
+5.7
+Associates
+17.7
+68.4
+Reimbursement of expenses paid
+162.9
+Associate
+40.9
+1,296.6
+1,005.6
+1,296.6
+1,209.4
+0.5
+Joint venture
+Others
+Receiving of service
+Others
+* in Million
+Year ended
+ANNEXURE 'B'
+Year ended
+Details of related party transaction:
+Sidmak Laboratories India Private Limited
+Alfa Infraprop Pvt. Ltd.
+Sun Petrochemicals Pvt Ltd
+Sun Pharma Advanced Research Company Ltd
+Shantilal Shanghvi Foundation
+Others (Entities in which the KMP and Relatives of KMP have control or significant influence)
+Makov Associates Ltd
+Vidhi Shanghvi
+d
+Chairman and Non-Executive Director
+Executive Director
+ANNEXURE 'B'
+Executive Director
+Managing Director
+Executive Director
+Aalok Shanghvi
+с
+Relatives of Key Managerial Personnel
+Vivek C. Sehgal (w.e.f. November 14, 2017)
+Rekha Sethi
+Ashwin S. Dani
+Keki M. Mistry
+Hasmukh S. Shah (resigned w.e.f. November 15, 2017)
+S. Mohanchand Dadha
+Kalyansundaram Subramanian (w.e.f. February 14, 2017)
+Non-Executive Directors
+Israel Makov
+Ramdev Chemicals Private Limited
+Sudhir V. Valia
+Sholapur Organics Private Limited
+United Medisales Private Limited
+Aditya Medisales Limited
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+211
+Foundation for Disease Elimination and Control of India
+Unconsolidated subsidiary
+Vintage Power Generation LLP
+Generic Solar Power LLP
+Trumpcard Advisors and Finvest LLP
+scPharmaceuticals Inc.
+Medinstill LLC
+Daiichi Sankyo (Thailand) Ltd. [Refer note 39 (r)]
+Zenotech Laboratories Limited [Refer note 39 (t) and 39 (u)]
+Associates
+Artes Biotechnology GmbH
+S&I Ophthalmic LLC
+g
+f
+Joint Venture
+e
+United Medisales Private Limited
+Virtous Finance Private Limited
+0.5
+9.4
+0.0
+14.5
+0.0
+78.6
+0.0
+42 Office Pharmaceutique
+(11.8)
+(0.0)
+(10.9)
+(0.0)
+Rexcel Egypt LLC
+Industriel Et Hospitalier
+41
+LLC (Formerly known as
+(95.4)
+(0.2)
+(95.4)
+(0.1)
+265.7
+0.1
+40 Sun Pharma Egypt Limited
+(64.1)
+(0.1)
+Ranbaxy Egypt Ltd)
+43
+Basics GmbH
+0.2
+19.8
+0.0
+Ranbaxy Italia S.P.A.
+46
+146.8
+0.3
+146.8
+0.2
+505.2
+0.1
+45 Ranbaxy Ireland Limited
+1.7
+0.0
+44 Ranbaxy GmbH
+41.2
+0.1
+14.5
+0.0
+(11.8)
+(0.0)
+41.2
+0.1
+842.2
+(64.1)
+(0.1)
+332.7
+0.1
+As % of
+(TCI)
+2016-17
+Share in total
+comprehensive income
+Share in other
+comprehensive income
+(OCI)
+2016-17
+2016-17
+As % of
+consolidated
+profit or (loss)
+(0.0)
+(71.5)
+(0.0)
+36 Sun Pharma East Africa
+Limited
+net assets
+* in Million
+As % of
+consolidated
+2016-17
+Name of the entity
+No.
+S.
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+ANNEXURE 'A'
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and
+joint ventures as per Schedule III of Companies Act, 2013:
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+As % of
+(0.0)
+* in Million
+consolidated in Million
+39 Ranbaxy Pharmaceuticals
+Canada Inc.
+Ltda.
+87.3
+0.2
+87.3
+0.1
+(1,070.3)
+(0.3)
+38 Ranbaxy Farmaceutica
+Ranbaxy Australia Pty Ltd)
+Ltd (Formerly known as
+34.8
+0.1
+34.8
+0.0
+(429.7)
+(0.1)
+37 Sun Pharma ANZ Pty
+(32.2)
+(0.1)
+(32.2)
+TCI
+OCI
+consolidated in Million
+7.6 5,297.3
+(33.9)
+(2.5)
+0.2
+104.9
+0.2
+248.6
+0.1
+55 Laboratorios Ranbaxy,
+Limited
+0.1
+0.0
+I
+104.9
+0.1
+17.3
+0.0
+54 Be-Tabs Investments (Pty)
+(Pty) Limited
+186.9
+0.3
+186.9
+0.3
+(1,035.4)
+(0.3)
+0.0
+S.L.U.
+56
+Ranbaxy (U.K.) Limited
+0.0
+0.0
+0.0
+148.1
+38,000.0
+9.4
+Ranbaxy Inc. (Consolidated
+59
+0.0
+58 Ranbaxy Europe Limited
+Limited
+(1.0)
+(0.0)
+(1.0)
+(0.0)
+2,480.0
+0.6
+57 Ranbaxy Holdings (U.K.)
+63.2
+0.1
+63.2
+0.1
+1,164.6
+0.3
+53 Ranbaxy Pharmaceuticals
+Subsidiary)
+(Consolidated with its
+Proprietary Limited
+10,409.9
+2.6
+49 Terapia S.A.
+0.0.
+11.0
+0.0
+11.0
+0.0
+156.9
+0.0
+48 Ranbaxy (Poland) Sp. Z
+known as Ranbaxy - PRP
+(Peru) S.A.C.)
+Industries S.A.C. (Formerly
+(22.2)
+(0.0)
+(22.2)
+(0.0)
+(94.5)
+(0.0)
+Sun Pharmaceutical
+47
+(36.4)
+(0.1)
+3.2
+0.0
+2,237.1
+2,237.1
+308.1
+0.5
+308.1
+0.4
+852.4
+0.2
+52 Ranbaxy South Africa
+25.1
+0.0
+25.1
+0.0
+1,703.7
+0.4
+JSC Biosintez
+51
+Known ZAO Ranbaxy)
+143.0
+0.3
+143.0
+0.2
+987.2
+0.2
+50 AO Ranbaxy (Formerly
+4.0
+Unconsolidated subsidiary
+No.
+Joint venture
+7.4
+145.3
+18.0
+30.0
+1,557.7
+(67.5)
+80.47
+EURO
+29.06.2007
+12.0
+18.55
+1.7
+ILS
+15 Aditya Acquisition Company Ltd.
+16 Sun Pharmaceutical Industries (Europe)
+100.00%
+(1,216.6)
+(1,216.6)
+3,501.1
+7,019.8
+(1,954.2) 8,532.6
+49.78
+AUD
+11.03.2008
+22.04.2007
+5.7
+100.00%
+1,623.8
+22 Sun Global Canada Pty. Ltd.
+(0.1)
+5.54
+ZAR
+22.10.2008
+21 Sun Pharmaceuticals (SA) (Pty) Ltd.
+64.93
+USD
+25.11.2008
+20 Sun Pharma Global FZE
+EURO 80.47
+10.02.2009
+80.47
+EURO
+11.08.2008
+80.47
+EURO
+14.04.2008
+17 Sun Pharmaceuticals Italia S.R.L.
+18 Sun Pharmaceuticals Germany GmbH
+19 Sun Pharmaceuticals France
+100.00%
+62.2
+62.2
+1,386.6
+100.00%
+104.0
+104.0
+(0.1)
+24.11.2008
+10 Chattem Chemicals Inc.
+100.00%
+3.6
+3.6
+3.3
+0.8
+(2.6)
+0.01
+VEF
+06.11.2011
+9 Sun Pharma De Venezuela, C.A.
+100.00%
+(2.5)
+1.2
+(1.3)
+201.9
+32.9
+(169.1)
+1.13
+RUB
+12.11.2007
+8 OOO "Sun Pharmaceutical Industries"
+Limited
+USD
+23.06.2009
+64.93
+11 The Taro Development Corporation
+91.88
+GBP
+20.06.2005
+99.99%
+(101.5)
+2.0
+(99.5)
+1,395.2
+100.00%
+100.00%
+(414.4)
+(49.9)
+(464.3)
+1,436.5
+167.2
+1,289.2 1,289.6
+18,655.2 37,265.1 12,814.2
+64.93
+USD
+05.08.2005
+12 Alkaloida Chemical Company Zrt.
+13 Sun Pharmaceuticals UK Limited
+14 Sun Pharmaceutical Industries (Australia)
+Pty Ltd
+(0.4)
+64.93
+USD
+20.09.2010
+1,023.4 3,426.4
+99.33%
+USD
+(1.4)
+100.00%
+0.0
+0.0
+1.6
+6.1
+(1.6)
+0.06
+KRW
+20.09.2011
+28 Sun Pharmaceuticals Korea Ltd.
+Rendering of service
+2.2
+(60.6)
+27.7
+100.00%
+(1,008.8)
+0.2
+(1,008.6)
+(32.9)
+2.2
+0.1
+183.5
+(2.2)
+64.93
+100.00%
+12.01.2012
+INR
+1.00
+14,710.9 1,001.0 13,709.9
+100.00%
+100.00%
+8,762.2 4,790.0
+2,820.2
+100.00%
+(0.0)
+(0.0)
+51,099.1 11,582.4
+5,714.3
+0.0
+196,823.2 227,734.3 30,910.6
+(0.1)
+0.2
+0.1
+143,136.8 147,281.9 4,100.9 20,731.6 16,014.2
+64.93
+64.93 44.2
+USD
+20.09.2010
+32 Taro Pharmaceutical Industries Ltd.
+USD
+05.05.1983
+31 Morley & Company, Inc.
+1.00
+INR
+09.03.2012
+30 Sun Pharma Laboratories Ltd
+0.0
+(0.1)
+USD
+25.03.2012
+27 Sun Pharma Healthcare FZE
+25.7
+296.8
+(0.9)
+45.2
+46.3
+0.3
+(209.2) 1,356.3 1,563.5
+(27.7) 337.7
+362.4
+126,764.2 137,227.5 10,195.5 6,093.2
+23.8
+23.9
+1.3
+3,025.3
+200.4
+19.6
+1,751.4 3,229.2
+674.4
+232.6
+(452.5)
+1.24
+PHP
+08.12.2011
+26 Sun Pharma Philippines, Inc.
+(1,574.8)
+0.61
+JPY
+01.03.2012
+25 Sun Pharma Japan Ltd.
+(4.8)
+64.93
+USD
+13.04.2011
+24 Sun Global Development FZE
+(1,060.6) 2,760.2
+64.93
+USD
+13.03.2011
+23 Sun Laboratories FZE
+(0.9)
+64.93
+100.00%
+13.9
+100.00%
+(0.7)
+(0.7)
+100.00%
+80.0
+80.0
+4,006.7
+100.00%
+(0.2)
+(0.2)
+100.00%
+0.0
+0.0
+100.00%
+2,302.4
+24,039.7 2,302.4
+21.0
+100.00%
+(4.8)
+(4.8)
+158.5
+100.00%
+8.8
+5.1
+745.9
+(1.0)
+29 Caraco Pharmaceuticals Private Limited
+157.3
+52.1
+62.8
+Donation
+13.3
+20.1
+Relatives of Key managerial personnel
+281.6
+217.6
+294.9
+237.7
+Unconsolidated subsidiary
+Key managerial personnel *
+2.5
+2.5
+Advance given
+2.5
+Unconsolidated subsidiary
+2.5
+Advance received back
+63.4
+Associates
+63.4
+Remuneration / compensation
+42.8
+Others
+20.0
+833.8
+917.6
+0.8
+1,129.6
+1,130.4
+12,287.2
+12,287.2
+Associates
+Payables
+Unconsolidated subsidiary
+Others
+Receivables
+in Million
+As at
+March 31, 2017
+March 31, 2018
+As at
+ANNEXURE 'B'
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+Balance outstanding as at the end of the year
+for the year ended March 31, 2018
+Notes to the Consolidated Financial Statements
+CONSOLIDATED FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+212
+(*) Remuneration to key managerial personnel includes the refund received from key managerial personnel in respect of excess remuneration paid for financial
+year 2014-15, 2015-16 and 2016-17.
+52.1
+Provision for doubtful loans and interest accrued and due on loans
+6.8
+Others
+6.8
+Others
+9,912.4
+Loans received back
+6,300.0
+Others
+6,300.0
+0.3
+0.3
+289.8
+326.1
+290.1
+326.4
+136.2
+178.2
+11.6
+0.1
+147.8
+178.3
+Loans / deposit given
+Others
+Reimbursement of expenses received
+Others
+(1.0)
+9,912.4
+137.7
+Purchase of Investment in associates and joint venture and unconsolidated subsidiary
+Associates
+1,856.1
+Rent expense
+46.8
+Others
+46.8
+Receipt on account of assets given under finance lease
+51.1
+51.0
+Others
+51.1
+51.0
+Lease rental and hire charges
+1,039.6
+Others
+70.4
+19.1
+Associates
+70.4
+1,058.7
+Interest income
+0.1
+Unconsolidated subsidiary
+1,856.0
+324.7
+324.7
+Key managerial personnel
+Unconsolidated subsidiary
+153.7
+100.00%
+72.50%
+1,308.7 306.0
+118.8 187.2
+35,759.0 (14,988.5) (41.7) (14,946.8)
+1,076.4 (168.5)
+28.0
+100.00%
+(0.1)
+(0.1)
+(5.4)
+1.6
+0.0
+1,038.5 1,506.0 421.2
+2,382.6 81,682.8 65,427.3 7,297.4
+(2,397.6) 576.8 2,865.6
+19.52
+BRL
+22.05.2009
+4 Sun Farmaceutica do Brasil Ltda.
+64.93 13,872.9
+USD
+14.06.2011
+3 Sun Pharmaceutical Industries, Inc.
+0.77
+BDT
+1
+1.00
+INR
+12.11.2010
+29.03.2001
+2 Sun Pharmaceutical (Bangladesh) Limited
+1 Green Eco Development Centre Limited
+(196.5)
+Taxation
+100.00%
+Sun Pharma De Mexico S.A. DE C.V.
+0.2
+169.5
+(157.1)
+20.11
+PEN
+27.06.2006
+7 Sun Pharmaceutical Peru S.A.C.
+100.00%
+3.52
+MXN
+13.02.2002
+6 SPIL De Mexico S.A. DE C.V.
+75.00%
+174.7
+88.3
+263.0
+1,267.0
+315.5
+988.9
+669.8
+3.52
+MXN
+03.12.2002
+5
+Taxation
+0.2
+% of
+Shareholding
+658.1
+0.5
+658.6
+Advance for supply of goods/services
+Others
+Advance from customer
+Associates *
+Loan given
+Associates
+Others
+Deposit given
+212.9
+212.9
+Associates
+212.9
+212.9
+Capital advance
+747.3
+Others
+0.6
+Relatives of key managerial personnel
+after
+0.8
+Others
+454.0
+454.0
+541.8
+3.4
+3.4
+Proposed
+Profit
+/ (Loss)
+Profit
+/ (Loss)
+before
+* in Million
+Investment
+in
+Subsidiary
+Investment Turnover
+Other than
+PART "A": Subsidiaries
+Total
+Total
+Assets Liabilities
+Reserve
+Reporting Rate Capital
+Currency
+when
+subsidiary
+was acquired
+Provision
+for
+Taxation
+Sr Name of the subsidiary company
+No
+0.1
+0.1
+* Net of Provision for doubtful loans and interest accrued and due on loans thereof Nil [ March 31, 2017: 726.9 Million]
+Date since
+Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term
+employee benefits recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee benefits are lump sum
+amount provided on the basis of actuarial valuation, the same is not included above and there is no Share-based payments to key managerial
+personnel of the Company.
+213
+214
+Dividend
+Pursuant to First Proviso to Sub-Section (3) of Section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement Containing Salient Features of the Financial Statement of Subsidiaries / Associate Companies/Joint Ventures
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+FORM AOC - 1
+The Shareholder, who wishes to waive/forgo the right to
+receive the dividend for any year shall send his irrevocable
+instruction waiving/forgoing dividend so as to reach the
+Company before the Record Date/Book Closure Date fixed
+for the payment of such dividend. Under no circumstances,
+any instruction received for waiver/ forgoing of the right to
+receive the dividend for any year after the Record Date /
+Book Closure Date fixed for the payment of such dividend
+for that year shall be given effect to.
+In case of joint holders holding the Equity Shares of the
+Company, all the joint holders are required to intimate
+to the Company in the prescribed form their decision of
+waiving/forgoing their right to receive the dividend from
+the Company.
+The Equity Shareholder(s) who wish to waive/forgo the
+right to receive the dividend for any year shall inform
+the Company in the form prescribed by the Board of
+Directors of the Company only.
+A Shareholder can waive/forgo the right to receive
+the dividend (either final and/or interim) to which he is
+entitled, on some or all the Equity Shares held by him in
+the Company as on the Record Date/ Book-closure Date
+fixed for determining the names of Members entitled for
+such dividend. However, the Shareholder cannot waive/
+forgo the right to receive the dividend (either final and/or
+interim) for a part of percentage of dividend on a share(s).
+V.
+IV.
+III.
+II.
+I.
+The Board of Directors of the Company at its meeting held on
+September 1, 2003 have framed the following rules under old
+Article 190A (corresponding Article no. 142 as per the new set
+of Articles of Association) of the Articles of Association of the
+Company for members who want to waive/forgo the right to
+receive dividend in respect of financial year 2002-2003 or for
+any year thereafter:
+at the 24th Annual General Meeting of the Company held
+on Saturday, September 17, 2016. Thus, the members of the
+Company can waive/forgo, if he/they so desire(s), his/their
+right to receive the dividend (interim or final) for any financial
+year effective from the dividend recommended by the Board
+of Directors of the Company for the year ended March 31,
+2004 on a year to year basis, as per the rules framed by the
+Board of Directors of the Company from time to time for this
+purpose. The member, if so wishes to waive/forgo the right
+to receive Dividend for the year ended March 31, 2018, shall
+fill up the form and send it to the Company's Registrars on or
+before Tuesday, September 18, 2018. The form prescribed by
+the Board of Directors of the Company for waiving/forgoing
+the right to receive Dividend for any year shall be available for
+download on the Company's website www.sunpharma.com
+under section "Investor - Shareholder's Information- Statutory
+Communication" or can also be obtained from the Company's
+Registrar and Share Transfer Agents, Link Intime India Pvt. Ltd.
+of the Company held on Monday, September 1, 2003, the
+members had approved, by way of a Special Resolution,
+certain amendments whereby few Articles were inserted in the
+Articles of Association of the Company relating to enabling the
+Company to implement any instruction from member(s) of the
+Company to waive/forgo his/their right to receive the dividend
+(interim or final) from the Company for any financial year. The
+above referred amendments as approved at the aforesaid Extra
+Ordinary General Meeting have been retained and are inter
+alia forming part of new set of Articles of Association adopted
+13. The Board of Directors at its Meeting held on May 25, 2018,
+recommended a Dividend of *2/- (Rupees Two only) per equity
+share of *1/- each of the Company for the year ended March
+31, 2018 and the same if declared at the Meeting will be paid
+on or before October 01, 2018 to the Company's members
+whose names stand in the Register of Members as beneficial
+owners at the close of business hours on Tuesday, September
+18, 2018 as per the list provided by National Securities
+Depository Limited ("NSDL") and Central Depository Services
+(India) Limited ("CDSL") in respect of shares held in electronic
+form and as members in the Register of Members of the
+Company after giving effect to valid transfers in physical form
+lodged with the Company on or before Tuesday, September 18,
+2018.
+Relevant documents / agreements referred to in the
+accompanying Notice and the Explanatory Statement are open
+for inspection by the members at the Registered Office and the
+Corporate Office of the Company on all working days, except
+Saturdays and Sundays, between 11:00 a.m. IST and 1:00.p.m.
+IST upto the date of the Meeting and at the venue of the
+Meeting during Meeting hours.
+12.
+11. This Notice of this AGM along with the Annual Report 2017-
+18 is being sent by electronic mode to those members whose
+e-mail address are registered with the Company's Registrar &
+Share Transfer Agents, Link Intime India Pvt. Ltd. / Depositories.
+Physical copies of the Notice of 26th AGM along with Abridged
+Annual Report are being sent, by the permitted mode, to those
+members whose email addresses are not registered and the
+members who have specifically requested for the physical copy
+in addition to e-mail. However, in case a member wishes to
+receive a physical copy of the full Annual Report 2017-18, he/
+she is requested to write to Link Intime India Pvt. Ltd., C 101,
+247 Park, L.B.S. Marg, Vikhroli (West), Mumbai 400 083 or email
+at rnt.helpdesk@linkintime.co.in from their registered e-mail ID,
+duly quoting his/her DP ID and Client ID or the Folio number, as
+the case may be. A copy of the Notice of the Meeting along with
+the Annual Report 2017-18 is also available for download on
+the website of the Company www.sunpharma.com. To support
+the 'Green Initiative', members who have not registered their
+e-mail addresses are requested to register the same with our
+Registrar & Share Transfer Agents, Link Intime India Pvt. Ltd. /
+Depositories.
+purpose of the 26th AGM of the Company and for the payment
+of Dividend.
+The instruction once given by a Shareholder intimating
+his waiver/forgoing of the right to receive the dividend
+222
+14. At the Extra Ordinary General Meeting of the members
+These Rules can be amended by the Board of Directors of
+the Company from time to time as may be required.
+SUN
+to IEPF
+Year
+10. The Register of Members and Share Transfer Books of the
+Company will be closed from Wednesday, September 19,
+2018 to the date of the 26th AGM of the Company be held on
+Wednesday, September 26, 2018 (both days inclusive) for the
+Dividend for Financial
+Due Date for transfer
+Last date for claiming
+unpaid Dividend
+15.09.2018
+Rate of Dividend
+Date of Declaration of
+Dividend entitled
+17. Pursuant to Section 124 of the Act, the amount of dividend remaining unclaimed for a period of seven years shall be transferred to the
+Investor Education and Protection Fund ("IEPF"). The Company will be transferring the unclaimed dividends during the financial years
+ending March 31, 2019 to March 31, 2025 as given below:
+16. The members may be aware that the equity shares of the
+Company had been subdivided from 1 (One) equity share of
+*5/- (Rupees Five Only) each to 5 (Five) equity shares of
+*1/- each on November 29, 2010 based on the Record Date
+of November 26, 2010. The members who have yet not sent
+their share certificates of ₹5/- (Rupees Five Only) each of the
+Company for exchange with new equity shares of *1/- each are
+requested to send the same to the Company's Registrar and
+Share Transfer Agents, Link Intime India Pvt. Ltd. since the old
+share certificates of *5/- (Rupees Five Only) each are no longer
+tradable.
+15. The members of erstwhile Tamilnadu Dadha Pharmaceuticals
+Limited; erstwhile Gujarat Lyka Organics Limited; erstwhile
+Phlox Pharmaceuticals Limited and erstwhile Ranbaxy
+Laboratories Limited; who have not yet sent their share
+certificates of erstwhile Tamilnadu Dadha Pharmaceuticals
+Limited; erstwhile Gujarat Lyka Organics Limited; erstwhile
+Phlox Pharmaceuticals Limited and erstwhile Ranbaxy
+Laboratories Limited, respectively for exchange with the
+share certificates of Sun Pharmaceutical Industries Limited,
+are requested to do so at the earliest, since share certificates
+of the erstwhile Tamilnadu Dadha Pharmaceuticals Limited;
+erstwhile Gujarat Lyka Organics Limited; erstwhile Phlox
+Pharmaceuticals Limited and erstwhile Ranbaxy Laboratories
+Limited are no longer tradable/ valid.
+the concerned Shareholders on issues arising out of the
+interpretation and/or implementation of these Rules.
+IX.
+VIII. The decision of the Board of Directors of the Company
+or such person(s) as may be authorized by Board of
+Directors of the Company shall be final and binding on
+VII. The instruction by a Shareholders to the Company for
+waiving/ forgoing the right to receive dividend for any
+year is purely voluntary on the part of the Shareholder(s).
+There is a no interference with a Shareholder's Right to
+receive the dividend, if he does not wish to waive/forgo
+his right to receive the dividend. No action is required on
+the part of Shareholder who wishes to receive dividends
+as usual. Such Shareholder will automatically receive
+dividend as and when declared.
+The Equity Shareholders who wish to waive/forgo their
+right to receive the dividend for any year can inform the
+Company in the prescribed form only after the beginning
+of the relevant financial year for which the right to
+receive the dividend is being waived/forgone by him.
+for any year for interim, final or both shall be irrevocable
+and can not be withdrawn for that particular year for
+such waived/forgone the right to receive the dividend.
+But in case, the relevant Shares are sold by the same
+Shareholder before the Record Date/Book Closure Date
+fixed for the payment of such dividend, the instruction
+once exercised by such earlier Shareholder intimating
+his waiver/forgoing the right to receive dividend will be
+invalid for the next succeeding Shareholder(s) unless such
+next succeeding Shareholder(s) intimates separately in
+the prescribed form, about his waiving/ forgoing of the
+right to receive the dividend for the particular year.
+VI.
+PHARMA
+223
+Members of the Company had approved the appointment of
+SRBC & Co LLP, Chartered Accountants, as the Statutory
+Auditor of the Company at the 25th Annual General Meeting
+of the Company for a period of five years upto the conclusion
+of 30th Annual General Meeting of the Company. This
+appointment was required to be ratified by members at every
+Annual General Meeting in accordance with the Act, however,
+in accordance with the Companies Amendment Act, 2017,
+enforced on May 07, 2018 by Ministry of Corporate Affairs, the
+appointment of Statutory Auditors is now not required to be
+ratified by the members at every Annual General Meeting.
+May 25, 2018
+The Proxy should carry his/her identity proof i.e. a Pan Card /
+Aadhaar Card / Passport/Driving License / Voter ID Card or
+such other proof(s) to prove his/her identity at the venue of the
+Meeting.
+"RESOLVED THAT pursuant to the provisions of Section
+148 and other applicable provisions, if any, of the Companies
+Act, 2013 read with the Companies (Audit and Auditors)
+Rules, 2014 (including any statutory modification(s) or re-
+enactment(s) thereof, for the time being in force), the members
+be and hereby ratify the remuneration as set out in the
+Explanatory Statement annexed to this Notice payable to M/s.
+Kailash Sankhlecha & Associates, Cost Accountants, Firm's
+Registration No. 100221, appointed as the Cost Auditors of the
+Company to conduct the audit of cost records maintained by
+the Company for the financial year 2018-19.
+11. To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+2019 (including any statutory modification(s) or re-enactment(s)
+thereof for the time being in force), the approval of the members
+be and is hereby accorded for continuation of Directorship of
+Mr. Israel Makov (DIN:05299764), Non-executive Director and
+Chairman of the Company."
+PHARMA
+SUN
+221
+"RESOLVED THAT pursuant to Regulation 17(1A) and other
+applicable regulations of SEBI (Listing Obligations and Disclosure
+Requirements) Regulations, 2015 to be effective from April 01,
+10. To consider and, if thought fit, to pass the following
+resolution as a Special Resolution:
+RESOLVED FURTHER THAT the Board of Directors of the
+Company be and is hereby authorised to take such steps as
+they may deem fit, expedient or desirable to give effect to this
+resolution."
+RESOLVED FURTHER THAT the Board of Directors of
+the Company or any Committee thereof, be and is hereby
+authorized to do all such acts, deeds and things, to execute all
+such documents, instruments and writings as may be required
+to give effect to this resolution."
+The re-appointment of Mr. Kal as the Whole time
+Director of the Company would be subject to the
+provisions of Section 152 (6) of the Act, i.e. Mr. Kal would
+be liable to retire by rotation. The re-appointment as
+Whole-time Director will be terminated by either party
+giving to other thirty day's notice in writing or upon
+Mr. Kal ceasing to be a Director of the Company.
+No remuneration shall be payable to Mr. Kal for his
+reappointment as Whole-time Director of the Company.
+His re-appointment would be without any remuneration,
+however, he will be entitled for reimbursement of
+expenses incurred while discharging his duties as the
+Whole-time Director of the Company.
+Remuneration:
+He will report to Mr. Dilip S. Shanghvi, the Managing
+Director of the Company. He is further authorised to do
+all such acts, deeds, things and matter as may be required
+to do, as the Whole-time Director. The Appointee shall
+perform such duties and exercise such powers as are
+additionally entrusted to him by the Board.
+Subject to the supervision and control of the Board of
+Directors and subject to the provisions of the Act, Mr.
+Kal, the Whole-time Director will carry out such duties
+and exercise such powers as may be entrusted to him by
+the Board of Directors and the Managing Director.
+II)
+1)
+the Company and subject to such approval(s) as may be
+necessary under law, Mr. Kalyanasundaram Subramanian
+(DIN: 00179072)("Mr. Kal”) be and is hereby re-appointed as
+the Whole-time Director of the Company upon the expiry of
+his present term of office on February 13, 2019, for a further
+period of 2 (Two) years commencing from February 14, 2019
+to February 13, 2021, without any remuneration, on such
+terms and conditions as stated below and as set out in the
+draft Agreement as placed before this meeting duly initialled by
+the Chairman of this meeting for the purpose of identification,
+and the said draft Agreement be and is hereby specifically
+approved with liberty to the Board of Directors to alter, vary
+and modify the terms and conditions of the said appointment
+and/or the said draft Agreement, in such manner as may be
+agreed to, between the Board of Directors and Mr. Kal, within
+and in accordance with Act or such other applicable provisions
+or any statutory modification(s) or re-enactment(s) thereof and,
+if necessary, subject to the approval of Central Government
+as may be necessary and agreed to between the Board of
+Directors and as may be acceptable to Mr. Kal:
+2010-2011
+"RESOLVED THAT in accordance with the provisions of
+Sections 196, 203 and other applicable provisions, if any, of
+the Companies Act, 2013 ('the Act') read with Schedule V of
+the Act and the Companies (Appointment and Remuneration
+of Managerial Personnel) Rules, 2014 (including any statutory
+modification(s) or re-enactment(s) thereof for the time being
+in force); relevant provisions of Articles of Association of
+III) Other Terms and Conditions:
+In case of joint holders attending the Meeting, the member
+whose name appears as the first holder in the order of names
+as per Register of Members will be entitled to vote.
+Mumbai
+By order of the Board of Directors
+For Sun Pharmaceutical Industries Ltd.
+Member(s)/ proxy(ies)/ Authorised Representative(s) should
+bring their attendance slips duly filled in for attending the
+Meeting.
+Corporate members intending to send their authorized
+representative(s) to attend and vote on their behalf at the
+Meeting are requested to submit to the Company a certified
+true copy of the resolution of the Board of Directors or
+other governing body of the body corporate authorizing
+their representative(s) to attend and vote along with
+specimen signature of authorized representative(s) before
+commencement of the Meeting.
+Pursuant to the provisions of Section 105 of the Act read
+with the Companies (Management and Administration) Rules,
+2014, a person can act as a proxy on behalf of not more than
+fifty members and holding in aggregate not more than ten
+percent of the total share capital of the Company. Members
+holding more than ten percent of the total share capital of
+the Company may appoint a single person as proxy, who shall
+not act as a proxy for any other person or member. Proxies
+submitted on behalf of limited companies, societies, etc., must
+be supported by an appropriate resolution / authority, as
+applicable.
+The Proxy form duly completed must reach the Registered
+Office of the Company not later than forty-eight hours before
+the scheduled time of the commencement of the Meeting.
+A MEMBER ENTITLED TO ATTEND AND VOTE AT THE
+MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND
+AND VOTE INSTEAD OF HIMSELF/HERSELF AND SUCH
+PROXY NEED NOT BE A MEMBER OF THE COMPANY.
+9.
+8.
+7.
+The relevant details as required under Regulation 36 of the
+SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 ("Listing Regulations") and Clause 1.2.5
+of Secretarial Standard on General Meetings issued by the
+Institute of Company Secretaries of India (SS-2), in respect of
+the persons seeking appointment / re-appointment as Director
+is given under the heading "Profile of Directors" forming part of
+this Notice.
+Registered Office:
+The Explanatory Statement pursuant to Section 102(1) of the
+Companies Act, 2013 ('the Act') relating to the Special Business
+to be transacted at the 26th Annual General Meeting of the
+Company (the "Meeting" or "AGM") under Item Nos. 5 to 11.
+NOTES:
+* The actual equity dividend to be declared by the members at the
+26th Annual General meeting will be for only equity shares other
+than the equity shares in respect of which the equity shareholder(s)
+has/have waived/forgone his/her/their right to receive the dividend
+for the financial year ended March 31, 2018 in accordance with the
+rules framed by the Board as per Note no. 14 hereinafter appearing.
+6.
+Sunil R. Ajmera
+Company Secretary
+5.
+4.
+3.
+2.
+SPARC, Tandalja, Vadodara - 390 012.
+1.
+2011-2012
+Route map along with prominent landmark to the Venue of the
+Meeting is provided at the end of this Notice.
+*3.50 per share of ₹1/- each
+*4.25 per share of *1/- each
+C.
+For NSDL: 8 Character DP ID followed by 8
+Digits Client ID,
+b.
+a. For CDSL: 16 digits beneficiary ID,
+Now Enter your User ID
+(iv)
+Click on Shareholders / Members tab.
+The members should log on to the e-voting website
+www.evotingindia.com.
+The voting period begins on Sunday, September
+23, 2018, at 09:00 a.m. and ends on Tuesday,
+September 25, 2018 at 05:00 p.m. During this
+period, members of the Company, holding shares
+either in physical form or in dematerialized form,
+as on the cut-off date of Tuesday, September 18,
+2018, may cast their vote electronically. The remote
+e-voting module shall be disabled by CDSL for
+voting thereafter.
+(c)
+(b)
+(a)
+Voting through electronic means:
+(iii)
+Remote e-voting and electronic voting system:
+21.
+(ii)
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+20.
+Members holding shares in Physical Form
+should enter Folio Number registered with the
+Company.
+In accordance with the applicable provisions of the
+Listing Regulations and the Act, read with Companies
+(Management and Administration) Rules, 2014 including
+any amendments thereto, the Company is pleased
+to provide facility to its members, to cast their vote
+electronically for all the resolutions proposed at the 26th
+Annual General Meeting. The Company has appointed
+CDSL to provide e-voting facilities to its members.
+The voting right of members shall be in proportion to one
+vote per fully paid equity share of the Company held by
+them as on the cut-off date Tuesday, September 18, 2018.
+(viii) After entering these details appropriately, click on
+"SUBMIT" tab.
+Any person who becomes a member of the Company
+after dispatch of the Notice and holds shares of the
+Company as on the cut-off date ie. Tuesday, September
+18, 2018 and whose PAN is not registered with the
+Company may obtain the e-voting code detail by writing
+to the Company at rnt.helpdesk@linkintime.co.in or
+secretarial@sunpharma.com or contact Mr. Ashok Bhuta,
+Compliance Officer.
+• If both the details are not recorded with
+the depository or company please enter
+the member id / folio number in the
+Dividend Bank details field as mentioned
+in instruction (iv).
+Enter the Dividend Bank Details or Date of
+Birth (in dd/mm/yyyy format) as recorded
+in your demat account or in the company
+records in order to login.
+• Members who have not updated their
+PAN with the Company/Depository
+Participant are requested to use the
+e-voting code which is printed on address
+label on the envelope for the Abridged
+Annual Report sent in Physical, in the
+PAN field. For those having email IDs the
+e-voting code is sent by email.
+Enter your 10 digit alpha-numeric PAN
+issued by Income Tax Department
+(Applicable for both demat shareholders as
+well as physical shareholders)
+For Members holding shares in Demat Form and
+Physical Form
+OR Date
+of Birth
+(DOB)
+Bank
+Details
+(i)
+Dividend
+(vii) If you are a first time user, follow the steps given
+below:
+226
+PHARMA
+SUN
+225
+(vi) If you are holding shares in demat form and had
+logged on to www.evotingindia.com and voted on
+an earlier voting of any company, then your existing
+password is to be used.
+Next enter the Image Verification as displayed and
+Click on Login.
+(v)
+The remote e-voting period begins on Sunday, September
+23, 2018 at 09:00 a.m. and ends on Tuesday, September
+25, 2018 at 05:00 p.m. During this period, members of
+the Company, holding shares either in physical form or in
+dematerialized form, as on the cut-off date i.e. Tuesday,
+PAN
+16.09.2011
+10.08.2012
+The procedure and instructions for members voting by
+remote e-voting are as under:
+The facility for voting through electronic means shall also
+be made available at the Meeting and members of the
+Company as of cut-off date, attending the Meeting who
+have not already cast their vote by remote e-voting shall
+be able to exercise their right to vote at the Meeting. The
+members who have cast their vote by remote e-voting
+prior to the Meeting may attend the Meeting but shall
+not be entitled to cast their vote again.
+2015-2016
+29.11.2022
+30.10.2022
+*3.00 per share of *1/- each
+31.10.2015
+2014-2015
+26.10.2021
+27.09.2021
+*1.50 per share of *1/- each
+27.09.2014
+2013-2014
+25.10.2020
+26.09.2020
+*2.50 per share of *1/- each
+30.09.2013
+2012-2013
+07.09.2019
+09.08.2019
+14.10.2018
+17.09.2016
+2016-2017
+26.09.2017
+*1.00 per share of *1/- each
+*3.50 per share of *1/- each
+September 18, 2018, may cast their vote electronically.
+The remote e-voting module shall be disabled by CDSL
+for voting thereafter.
+(f)
+(e)
+(d)
+The amendment to Regulation 40 of Listing Regulations vide
+Gazette notification dated June 08, 2018 has mandated that
+transfer of securities would be carried out in dematerialized
+form only. Accordingly, with effect from December 05, 2018,
+shares which are lodged for transfer shall be in dematerialized
+form only. The concerned are hence requested to get their
+physical shares dematerialized urgently as with effect from
+December 05, 2018, except in case of transmission or
+transposition of securities, requests for effecting transfer of
+securities shall not be processed unless the securities are held
+in the dematerialized form.
+"Shareholder Information".
+The procedure to claim shares from IEPF Authority is provided
+on the website of the Company and can be accessed from:
+www.sunpharma.com under head "Investor" sub-head
+The details of shares liable to be transferred to the IEPF
+Authority are also available on website of the Company
+www.sunpharma.com under head "Investor" sub-head
+"Shareholder Information". These shares will be transferred to
+the IEPF Authority as per the requirements of Rules.
+7 (seven) consecutive years, the details of which are available
+on website of the Company www.sunpharma.com under head
+"Investor" sub-head "Shareholder Information".
+Mr. Chintan Goswami, Partner of KJB & Co LLP and
+failing him Mr. Alpeshkumar Panchal, Partner of KJB & Co
+LLP Practicing Company Secretaries, Mumbai, has been
+appointed by the Board of Directors of the Company, as
+the Scrutinizer to scrutinize the e-voting process (remote
+e-voting and electronic voting at the venue) in a fair and
+transparent manner and they have communicated their
+willingness to be appointed as such and that they are
+available for the said purpose.
+Consequently, the Company has transferred the shares to
+the IEPF Authority in respect of which dividend has remained
+unpaid or unclaimed from the financial year 2009-10 for
+19.
+18. The members may note that pursuant to Section 124(6) of the
+Act read with Investor Education and Protection Fund Authority
+(Accounting, Audit, Transfer and Refund) Rules, 2016 as
+the Company has uploaded the details of unpaid and unclaimed
+amounts lying with the Company as on September 26, 2017
+(date of the last Annual General Meeting of the Company) on
+the website of the Company viz., www.sunpharma.com under
+head "Investor" sub-head "Shareholder Information" as well as
+on the website of the Ministry of Corporate Affairs viz.,
+www.iepf.gov.in.
+Members who have not encashed their dividend warrants,
+for the financial year ended March 31, 2011 and onwards
+are requested to approach the Company's Registrar & Share
+Transfer Agents, Link Intime India Pvt. Ltd. at C-101, 247 Park,
+L.B.S. Marg, Vikhroli (West), Mumbai - 400083, Maharashtra,
+India, to claim their unpaid Dividend. The Dividend declared for
+the financial year ended March 31, 2011 and remaining unpaid
+and unclaimed, will be transferred to the Investor Education
+and Protection Fund ("IEPF") by October 14, 2018. Pursuant
+to the provisions of Investor Education and Protection Fund
+Authority (Accounting, Audit, Transfer and Refund) Rules, 2016,
+224
+25.10.2024
+26.09.2024
+15.10.2023
+16.09.2023
+amended from time to time ("the Rules”), the shares in respect
+of which dividend has not been paid or claimed by the members
+for seven consecutive years or more shall be transferred to the
+demat account created by the IEPF Authority.
+RESOLVED FURTHER THAT the Board of Directors of the
+Company be and is hereby authorised to take such steps as
+they may deem fit, expedient or desirable to give effect to this
+resolution."
+NOTICE is hereby given that the Twenty-Sixth Annual General
+Meeting of the members of Sun Pharmaceutical Industries Limited
+will be held on Wednesday, September 26, 2018 at 02:45 p.m. at
+Crystal Hall, Grand Mercure Vadodara Surya Palace, Opposite Parsi
+Agyari, Sayajigunj, Vadodara - 390 020, Gujarat, India to transact
+the following business:
+Other terms and conditions: Subject to the control
+and supervision of the Board of Directors and subject
+to the provisions of the Act, Mr. Sailesh T. Desai shall
+have the powers of general conduct and management
+of the affairs of the Company and he shall be entitled
+to exercise all such powers and to do all such acts and
+things the Company is authorised to exercise and all such
+powers, acts or things which are directed or required by
+the Law or any other Act or by the Articles of Association
+of the Company expect such powers/acts/things which
+can be exercised or done by the Company in General
+Meeting or by the Board of Directors at their Meeting
+only. Mr. Sailesh T. Desai to perform such duties and
+exercise such powers as are additionally entrusted to him
+by the Board and/or the Chairman and that he is further
+authorised to do all such acts, deeds, things and matters
+as he may be required to do, as a Whole-time Director.
+The appointment would be subject to the provisions of
+Section 152 (6) of the Act i.e. Mr. Sailesh T. Desai shall be
+liable to retire by rotation. The re-appointment will be for
+a period of five years which may be terminated by either
+party giving to the other thirty days' notice in writing or
+upon Mr. Sailesh T. Desai's ceasing to be a Director of
+the Company.
+2016-17*
+Profit (Loss) after tax
+Net Worth
+(4,945.9)
+(228.4)
+197,701.0
+210,124.7
+Revenue from operations
+Earnings Per Share
+79,476.0
+(2.1)
+77,932.0
+(0.1)
+*The Standalone Financial Results figures for 2016-17 have
+been restated to give effect to the merger of Sun Pharma
+Medisales Private Limited, Ranbaxy Drugs Limited, Gufic Pharma
+Limited and Vidyut Investments Limited into the Company with
+Appointed date of April 01, 2017.
+Consolidated Financial Results:
+Particulars
+Profit after tax and non-
+controlling interest
+(in millions except EPS)
+2017-18
+21,615.5
+2016-17*
+69,643.7
+Net Worth
+381,005.6
+366,396.7
+Revenue from operations
+2017-18
+264,894.6
+Particulars
+Standalone Financial Results:
+Item No. 7 and 8
+Mr. Sudhir V. Valia and Mr. Sailesh T. Desai were re-appointed as
+the Whole-time Directors of the Company by way of Special
+Resolutions passed by the members at the 21st Annual General
+Meeting of the Company held on September 30, 2013, for a period
+of 5(five) years effective from April 01, 2014 and their present term
+of re-appointment is upto March 31, 2019.
+Mr. Sudhir V. Valia and Mr. Sailesh T. Desai have been re-appointed
+as the Whole-time Directors of the Company by the Board of
+Directors on recommendation of the Nomination and Remuneration
+Committee of the Company, at their respective meetings held on
+May 25, 2018, subject to approval of members, for a further term of
+5 (five) years i.e. from April 01, 2019 upto March 31, 2024 and also
+approved and recommended the maximum remuneration payable
+to them, for a period of 3 (three) years with effect from April 01,
+2019 upto March 31, 2022. The remuneration was approved for the
+period of three years due to loss/inadequacy of profit, pursuant to
+requirements of Schedule V of Companies Act, 2013 ("Act").
+The members' approval is being sought for re-appointment of
+Mr. Sudhir V. Valia and Mr. Sailesh T. Desai, as the Whole-time
+227
+O
+SUN
+PHARMA
+The brief terms of re-appointment including remuneration of
+Mr. Sudhir V. Valia and Mr. Sailesh T. Desai, as recommended by
+Nomination and Remuneration Committee and approved by the
+Board of Directors are provided in the resolutions set out at Item No.
+7 and 8 of this Notice.
+Mr. Sudhir V. Valia and Mr. Sailesh T. Desai, fulfil all the conditions
+given under Section 196(3) and Schedule V of the Act for being
+eligible for their re-appointment. They are not disqualified in terms of
+Section 164 of the Act from being appointed as Director.
+The draft agreement to be entered into with Mr. Sudhir V. Valia and
+Mr. Sailesh T. Desai, are available for inspection by any member of
+the Company at the Registered Office of the Company on all working
+days except Saturdays and Sundays between 11:00 a.m. IST and 1:00
+p.m. IST up to the date of this 26th Annual General Meeting and at
+the venue of this Annual General Meeting during Meeting hours.
+Profile and other particulars, as required under provisions of SEBI
+(Listing Obligations and Disclosure Requirements) Regulations, 2015
+and Secretarial Standard on General Meetings issued by the Institute
+of Company Secretaries of India of Mr. Sudhir V. Valia and Mr. Sailesh
+T. Desai, are provided under heading "Profile of Directors” forming
+part of this Notice.
+The Board recommends the resolutions as set out at Item no. 7 and
+8 of this Notice for approval of the members as Special Resolutions.
+None of the Directors or Key Managerial Personnel of the Company
+and their relatives, other than Mr. Sudhir V. Valia and his relatives
+to whom resolution no. 7 relates and Mr. Dilip S. Shanghvi, being
+brother-in-law of Mr. Sudhir V. Valia, are in any way concerned or
+interested in the resolution as set out at Item no. 7 of this Notice.
+None of the Directors or Key Managerial Personnel of the Company
+and their relatives, other than Mr. Sailesh T. Desai and his relatives
+to whom resolution no. 8 relates, are in any way concerned or
+interested in the resolution as set out at Item no. 8 of this Notice.
+GENERAL INFORMATION
+3.
+4.
+Financial performance based on given indicators:
+(in millions except EPS)
+Earnings Per Share
+*9.0
+315,784.4
+*29.0
+399796338
+16.66
+Total
+The Company has not entered into any material foreign
+collaboration.
+INFORMATION ABOUT THE APPOINTEE
+STATEMENT OF INFORMATION FOR THE
+MEMBERS PURSUANT TO SECTION II OF PART II OF
+SCHEDULE V OF THE COMPANIES ACT, 2013.
+II.
+I.
+1.
+1.
+Nature of industry:
+The Company is engaged into development, manufacture,
+sale, trading, marketing and export of various
+pharmaceutical products.
+2.
+Date of commencement of commercial production:
+The Company is carrying on pharmaceutical business
+since its incorporation.
+Background details:
+The background details and profile of Mr. Sudhir V.
+Valia and Mr. Sailesh T. Desai are stated in "Profile of
+Directors" to this Notice.
+228
+(ix) Members holding shares in physical form will then
+directly reach the Company selection screen. However,
+members holding shares in demat form will now reach
+'Password Creation' menu wherein they are required
+to mandatorily enter their login password in the new
+password field. Kindly note that this password is to be
+also used by the demat holders for voting for resolutions
+of any other company on which they are eligible to vote,
+provided that company opts for e-voting through CDSL
+platform. It is strongly recommended not to share your
+password with any other person and take utmost care to
+keep your password confidential.
+0.00
+25422
+0.00
+46000
+Foreign investments or collaboration, if any:
+For details of investment made by the Company, please
+refer the schedule nos. 5, 6, 7 and 14 of the Standalone
+Balance sheet forming part of the Annual Report for
+2017-18.
+As on March 31, 2018, the Shareholding of Foreign
+Investors, in the Company is detailed as under:
+Particulars
+Foreign Portfolio Investors
+Foreign Institutional Investor
+Foreign Nationals
+Non Resident Indians (Repat)
+Non Resident Indians (Non
+Repat)
+Foreign Companies
+No. of Shares
+387782873
+3806500
+%
+None of the Directors or Key Managerial Personnel of the Company
+and their relatives, other than Mr. Sehgal and Mr. Gautam Doshi
+and their relatives, for their respective resolutions relating to
+their appointment, are in any way concerned or interested in the
+resolutions as set out at Item no. 5 and 6 of this Notice.
+16.16
+21040
+0.00
+4877089
+0.20
+2565549
+0.11
+671865
+0.03
+Overseas Bodies Corporate
+Foreign Bank
+0.16
+The Board of Directors recommend the resolutions as set out in item
+no. 5 and 6 of this Notice for approval of the members as Ordinary
+Resolutions.
+Profile and other particulars of Mr. Sehgal and Mr. Gautam Doshi,
+as required under the provisions of SEBI (Listing Obligations and
+Disclosure Requirements) Regulations, 2015 and Secretarial Standard
+on General Meetings issued by the Institute of Company Secretaries
+of India, are provided under heading "Profile of Directors" forming
+part of this Notice.
+The Company has also received notice pursuant to Section 160 of
+the Act from members proposing the candidature for appointment
+of Mr. Sehgal and Mr. Gautam Doshi as Independent Directors of
+the Company.
+SUN
+219
+Salary (including bonus and perquisites) up to
+*6,00,00,000/- (Rupees Six Crores only) per annum.
+a)
+"RESOLVED THAT in accordance with the provisions of
+Sections 196, 197, 198, 203 and other applicable provisions,
+if any, of the Companies Act, 2013 ('the Act') read with
+Schedule V of the Act and the Companies (Appointment and
+Remuneration of Managerial Personnel) Rules, 2014 (including
+any statutory modification(s) or re-enactment(s) thereof for
+the time being in force); relevant provisions of Articles of
+Association of the Company and subject to such approval(s)
+as may be necessary under law, Mr. Sudhir V. Valia (DIN:
+00005561) be and is hereby re-appointed as the Whole-time
+Director of the Company upon the expiry of his present term
+of office on March 31, 2019, for a further period of 5 (Five)
+years commencing from April 01, 2019 to March 31, 2024 and
+the consent of the members of the Company, be and is hereby
+accorded for maximum remuneration to be paid to Mr. Sudhir
+V. Valia for a period of 3 (Three) years commencing from April
+01, 2019 to March 31, 2022, on such terms and conditions
+including the said remuneration to be paid to him as minimum
+remuneration in the event of loss or inadequacy of profits in
+any financial year during the aforesaid period, as stated below
+and as set out in the draft Agreement as placed before the
+meeting duly initialled by the Chairman of this meeting for
+the purpose of identification, and the said draft Agreement be
+and is hereby specifically approved with liberty to the Board
+of Directors to alter, vary and modify the terms and conditions
+of the said appointment and/or remuneration and/or the said
+draft Agreement, in such manner as may be agreed to, between
+the Board of Directors and Mr. Sudhir V. Valia, within and in
+accordance with Act or such other applicable provisions or
+any statutory modification(s) or re-enactment(s) thereof and,
+if necessary, subject to the approval of Central Government
+as may be necessary and agreed to between the Board of
+Directors and as may be acceptable to Mr. Sudhir V. Valia:
+To consider and, if thought fit, to pass the following
+resolution as a Special Resolution:
+Act, 2013 ('the Act') read with Schedule IV of the Act and
+the Companies (Appointment and Qualification of Directors)
+Rules, 2014 and the applicable provisions of the SEBI (Listing
+Obligations and Disclosure Requirements) Regulations, 2015
+(including any statutory modification(s) or re-enactment(s)
+thereof, for the time being in force), Mr. Gautam Doshi (DIN:
+00004612), who was appointed as an Additional Independent
+Director with effect from May 25, 2018, by the Board of
+Directors of the Company and who holds office up to the date
+of this Annual General Meeting, be and is hereby appointed
+as an Independent Director of the Company, who shall not
+be liable to retire by rotation, for a term of 5 (Five) years
+commencing from May 25, 2018 upto May 24, 2023."
+7.
+"RESOLVED THAT pursuant to the provisions of Section 149,
+152 and other applicable provisions, if any, of the Companies
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+"RESOLVED THAT pursuant to the provisions of Section 149,
+152 and other applicable provisions, if any, of the Companies
+Act, 2013 ('the Act') read with Schedule IV of the Act and
+the Companies (Appointment and Qualification of Directors)
+Rules, 2014 and the applicable provisions of the SEBI (Listing
+Obligations and Disclosure Requirements) Regulations, 2015
+(including any statutory modification(s) or re-enactment(s)
+thereof, for the time being in force), Mr. Vivek Chaand Sehgal
+(DIN: 00291126), who was appointed as an Additional
+Independent Director with effect from November 14, 2017,
+by the Board of Directors of the Company and who holds
+office up to the date of this Annual General Meeting, be and is
+hereby appointed as an Independent Director of the Company,
+who shall not be liable to retire by rotation, for a term of
+5 (Five) years commencing from November 14, 2017 upto
+November 13, 2022."
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+6.
+5.
+SPECIAL BUSINESS:
+To appoint a Director in place of Mr. Sudhir V. Valia (DIN:
+00005561), who retires by rotation and being eligible, offers
+himself for re-appointment.
+To appoint a Director in place of Mr. Dilip S. Shanghvi (DIN:
+00005588), who retires by rotation and being eligible, offers
+himself for re-appointment.
+To consider declaration of dividend on equity shares for the
+financial year ended March 31, 2018.*
+To receive, consider and adopt the audited consolidated
+financial statements of the Company for the financial year
+ended March 31, 2018 and the report of the Auditors
+thereon.
+PHARMA
+220
+b)
+c)
+Minimum Remuneration: In the event of loss or
+inadequacy of profits in any financial year, Mr. Sailesh T.
+Desai shall be entitled to receive a total remuneration
+including perquisites, etc. not exceeding the ceiling limits
+as approved by the Board of Directors and the members
+hereinabove, as minimum remuneration subject to receipt
+of such approvals as may be required, if any.
+computation of ceiling on remuneration and perquisites
+as aforesaid.
+d)
+c)
+9.
+Company's contribution to provident fund and
+superannuation fund or annuity fund, gratuity payment as
+per Company's rules and encashment of leave at the end
+of his tenure, though payable, shall not be included in the
+Perquisites: He will be entitled to furnished/nonfurnished
+accommodation or house rent allowance, gas, electricity,
+medical reimbursement, leave travel concession for
+self and family, club fees, personal accident insurance,
+company maintained car, telephone and such other
+perquisites in accordance with the Company's rule, the
+monetary value of such perquisites to be determined
+in accordance with the Income-Tax Rules, 1962 being
+restricted to *25,00,000/- (Rupees Twenty Five Lakhs
+only) per annum.
+annum.
+b)
+b.
+a) Salary (including bonus and perquisites) up to
+*1,80,00,000/- (Rupees One Crore Eighty Lakhs only) per
+To consider and, if thought fit, to pass the following
+resolution as a Special Resolution:
+RESOLVED FURTHER THAT the Board of Directors of the
+Company be and is hereby authorised to take such steps as
+they may deem fit, expedient or desirable to give effect to this
+resolution."
+8.
+RESOLVED FURTHER THAT in the event of any statutory
+amendments, modifications or relaxation by the Central
+Government to Schedule V of the Act, the Board of
+Directors be and is hereby authorised to vary or increase the
+remuneration (including the minimum remuneration), i.e. the
+salary, perquisites, allowances, etc. within such prescribed
+limit or ceiling and the aforesaid draft Agreement between the
+Company and Mr. Sudhir V. Valia be suitably amended to give
+effect to such modification, relaxation or variation, subject to
+such approvals as may be required under law.
+Other terms and conditions: Subject to the control
+and supervision of the Board of Directors and subject
+to the provisions of the Act, Mr. Sudhir V. Valia shall
+have the powers of general conduct and management
+of the affairs of the Company and he shall be entitled
+to exercise all such powers and to do all such acts and
+things the Company is authorised to exercise and all such
+powers, acts or things which are directed or required by
+the Act or any other Law or by the Articles of Association
+of the Company expect such powers/acts/things which
+can be exercised or done by the Company in General
+Meeting or by the Board of Directors at their Meeting
+only. Mr. Sudhir V. Valia to perform such duties and
+exercise such powers as are additionally entrusted to him
+by the Board and/or the Chairman and that he is further
+authorised to do all such acts, deeds, things and matters
+as he may be required to do, as a Whole-time Director.
+The appointment would be subject to the provisions of
+Section 152 (6) of the Act i.e. Mr. Sudhir V. Valia shall be
+liable to retire by rotation. The re-appointment will be for
+a period of five years which may be terminated by either
+party giving to the other thirty days' notice in writing or
+upon Mr. Sudhir V. Valia's ceasing to be a Director of the
+Company.
+Minimum Remuneration: In the event of loss or
+inadequacy of profits in any financial year, Mr. Sudhir V.
+Valia shall be entitled to receive a total remuneration
+including perquisites, etc. not exceeding the ceiling limits
+as approved by the Board of Directors and the members
+hereinabove, as minimum remuneration subject to receipt
+of such approvals as may be required, if any.
+Company's contribution to provident fund and
+superannuation fund or annuity fund, gratuity payment as
+per Company's rules and encashment of leave at the end
+of his tenure, though payable, shall not be included in the
+computation of ceiling on remuneration and perquisites
+as aforesaid.
+Perquisites: He will be entitled to furnished/nonfurnished
+accommodation or house rent allowance, gas, electricity,
+medical reimbursement, leave travel concession for
+self and family, club fees, personal accident insurance,
+company maintained car, telephone and such other
+perquisites in accordance with the Company's rule, the
+monetary value of such perquisites to be determined
+in accordance with the Income-Tax Rules, 1962 being
+restricted to *75,00,000/- (Rupees Seventy Five Lakhs
+only) per annum.
+d)
+"RESOLVED THAT in accordance with the provisions of
+Sections 196, 197, 198, 203 and other applicable provisions,
+if any, of the Companies Act, 2013 ('the Act') read with
+Schedule V of the Act and the Companies (Appointment and
+Remuneration of Managerial Personnel) Rules, 2014 (including
+any statutory modification(s) or re-enactment(s) thereof for
+the time being in force); relevant provisions of Articles of
+Association of the Company and subject to such approval(s)
+as may be necessary under law, Mr. Sailesh T. Desai (DIN:
+00005443) be and is hereby re-appointed as the Whole-time
+Director of the Company upon the expiry of his present term
+of office on March 31, 2019, for a further period of 5 (Five)
+years commencing from April 01, 2019 to March 31, 2024 and
+the consent of the members of the Company, be and is hereby
+accorded for maximum remuneration to be paid to Mr. Sailesh
+T. Desai for a period of 3 (Three) years commencing from April
+01, 2019 to March 31, 2022, on such terms and conditions
+including the said remuneration to be paid to him as minimum
+remuneration in the event of loss or inadequacy of profits in
+any financial year during the aforesaid period, as stated below
+and as set out in the draft Agreement as placed before the
+meeting duly initialled by the Chairman of this meeting for
+the purpose of identification, and the said draft Agreement be
+and is hereby specifically approved with liberty to the Board
+of Directors to alter, vary and modify the terms and conditions
+of the said appointment and/or remuneration and/or the said
+draft Agreement, in such manner as may be agreed to, between
+the Board of Directors and Mr. Sailesh T. Desai, within and in
+accordance with Act or such other applicable provisions or
+any statutory modification(s) or re-enactment(s) thereof and,
+if necessary, subject to the approval of Central Government
+as may be necessary and agreed to between the Board of
+Directors and as may be acceptable to Mr. Sailesh T. Desai:
+RESOLVED FURTHER THAT in the event of any statutory
+amendments, modifications or relaxation by the Central
+Government to Schedule V of the Act, the Board of
+Directors be and is hereby authorised to vary or increase the
+remuneration (including the minimum remuneration), i.e. the
+salary, perquisites, allowances, etc. within such prescribed
+limit or ceiling and the aforesaid draft Agreement between the
+Company and Mr. Sailesh T. Desai be suitably amended to give
+effect to such modification, relaxation or variation, subject to
+such approvals as may be required under law.
+a. To receive, consider and adopt the audited standalone
+financial statements of the Company for the financial year
+ended March 31, 2018 and the reports of the Board of
+Directors and Auditors thereon.
+3.
+• A scanned copy of the Board Resolution and Power of
+Attorney (POA) which they have issued in favour of the
+Custodian, if any, should be uploaded in PDF format in
+the system for the scrutinizer to verify the same and
+send the scan copy of the Board resolution/ POA to
+scrutinizer@sunpharma.com.
+(xx) In case you have any queries or issues regarding remote
+e-voting, you may refer the Frequently Asked Questions
+("FAQs") and remote e-voting manual available at
+www.evotingindia.com, under help section or write an
+email to helpdeskevoting@cdslindia.com.
+Any person having any grievances in connection with
+remote e-voting may write to:
+Name
+Designation
+Address
+: Mr. Rakesh Dalvi
+: Deputy Manager
+Email ID
+Toll Free Number
+: CDSL, A Wing, 25th Floor,
+Marathon Futurex, Mafatlal Mills
+Compounds, N M Joshi Marg,
+Lower Parel (East), Mumbai - 400
+013, Maharashtra, India.
+:helpdesk.evoting@cdslindia.com
+: 1800225533
+The Scrutinizer will, immediately after the conclusion of
+electronic voting system at the venue of the Meeting, start
+scrutinizing the votes cast at the Meeting by electronic
+voting alongwith remote e-voting and prepare a consolidated
+Scrutinizer's Report and submit thereafter to the Chairman of the
+Meeting or any person authorised by him in writing. The result
+declared along with the consolidated Scrutinizer's Report will
+be placed on the Company's website at www.sunpharma.com
+and on the website of CDSL at www.evotingindia.com within
+48 hours of the conclusion of the Meeting. The Company will
+simultaneously forward the results to BSE Limited and National
+Stock Exchange of India Limited, where the shares of the
+Company are listed.
+EXPLANATORY STATEMENT PURSUANT TO
+SECTION 102 OF THE COMPANIES ACT, 2013
+As required under Section 102 of the Companies Act, 2013, the
+following Explanatory Statement sets out material facts relating
+to the Special Business as set out at Item Nos. 5 to 11 of the
+accompanying Notice dated May 25, 2018.
+Item No. 5 and 6
+Mr. Vivek Chaand Sehgal (DIN: 00291126) ("Mr. Sehgal"), was
+appointed as an Additional Independent Director on November 14,
+2017, in terms of Section 161(1) of the Companies Act, 2013 (“Act”),
+by the Board of Directors of the Company on the recommendation
+of Nomination and Remuneration Committee. Pursuant to the
+provisions of the aforesaid Section of the Act, Mr. Sehgal holds office
+upto to the conclusion of this 26th Annual General Meeting.
+Mr. Gautam Doshi (DIN: 00004612), was appointed as an Additional
+Independent Director on May 25, 2018, in terms of Section 161(1)
+of the Act, by the Board of Directors of the Company on the
+recommendation of Nomination and Remuneration Committee.
+Pursuant to the provisions of the aforesaid Section of the Act, Mr.
+Gautam Doshi holds office upto to the conclusion of this 26th
+Annual General Meeting.
+Further pursuant to Sections 149, 152 and Schedule IV of the
+Act read with Companies (Appointment and Qualification of
+Directors) Rules, 2014, the approval of members is being sought for
+appointment of Mr. Sehgal and Mr. Gautam Doshi as Independent
+Directors, for a term of 5 years i.e from November 14, 2017 upto
+November 13, 2022 and from May 25, 2018 upto May 24, 2023,
+respectively and during their tenure of appointment they shall not be
+liable to retire by rotation.
+The Company has received declaration from Mr. Sehgal and Mr.
+Gautam Doshi, stating that they meet the criteria of Independence
+as prescribed under sub-section (6) of Section 149 of the Act. In the
+opinion of the Board, they fulfil the conditions specified in the said
+Act and the rules made thereunder for appointment as Independent
+Directors of the Company and that they are independent of the
+management.
+• The list of accounts should be mailed to
+helpdeskevoting@cdslindia.com and on approval of the
+accounts they would be able to cast their vote.
+• After receiving the login details a compliance user
+should be created using the admin login and password.
+The Compliance user would be able to link the
+account(s) for which they wish to vote on.
+• A scanned copy of the Registration Form bearing the
+stamp and sign of the entity should be emailed to
+helpdesk.evoting@cdslindia.com.
+• Non-Individual shareholders (i.e. other than Individuals,
+HUF, NRI etc.) and Custodian are required to log on
+to www.evotingindia.com and register themselves as
+Corporates
+2.
+1.
+ORDINARY BUSINESS:
+NOTICE OF ANNUAL GENERAL MEETING
+Registered Office: SPARC Tandalja, Vadodara - 390 012, Gujarat, India Tel Nos: 0265-6615500/600/700 Fax No: 0265-2354897
+Corporate Office: Sun House, Plot No. 201 B/1, Western Express Highway, Goregaon -East, Mumbai - 400 063, Maharashtra, India.
+CIN: L24230GJ1993PLC019050 Website: www.sunpharma.com Email: secretarial@sunpharma.com
+Sun Pharmaceutical Industries Ltd.
+PHARMA
+SUN
+For Members holding shares in physical form, the
+details can be used only for e-voting on the resolutions
+contained in this Notice.
+4.
+(xi) Click on the EVSN for Sun Pharmaceutical Industries
+Limited to vote.
+DESCRIPTION" and against the same option "YES/NO"
+for voting. Select the option YES or NO as desired. The
+option YES implies that you assent to the Resolution and
+option NO implies that you dissent to the Resolution.
+(xiii) Click on the "RESOLUTIONS FILE LINK" if you wish to
+view the entire Resolution details.
+(xiv) After selecting the resolution you have decided to
+vote on, click on "SUBMIT". A confirmation box will be
+displayed. If you wish to confirm your vote, click on
+"OK", else to change your vote, click on "CANCEL" and
+accordingly modify your vote.
+(xv) Once you "CONFIRM" your vote on the resolution, you
+will not be allowed to modify your vote.
+(xvi) You can also take out print of the voting done by you
+by clicking on "Click here to print" option on the Voting
+page.
+(xvii) If Demat account holder has forgotten the changed
+password then Enter the User ID and the image
+verification code and click on Forgot Password & enter
+the details as prompted by the system.
+(xviii) Shareholders can also cast their vote using CDSL's mobile
+app m-Voting available for android based mobiles. The
+m-Voting app can be downloaded from Google Play
+Store. Apple and Windows phone users can download
+the app from the App Store and the Windows Phone
+Store respectively. Please follow the instructions as
+prompted by the mobile app while voting on your mobile.
+(xix) Note for Non - Individual Shareholders and Custodians
+(xii) On the voting page, you will see "RESOLUTION
+Directors of the Company for a further term of 5 (five) years from
+April 01, 2019 upto March 31, 2024 and for approval of their
+remuneration for a period of 3 (three) years from April 01, 2019 upto
+March 31, 2022 as provided in the resolutions set out at Item Nos. 7
+and 8 of this Notice.
+(x)
+• Member of Corporate Social Responsibility Committee
+Motherson Techno Tools Limited
+3.
+Samvardhana Motherson International Limited
+4.
+5.
+Kyungshin Industrial Motherson Pvt. Ltd.
+6.
+Fritzmeier Motherson Cabin Engineering Pvt. Ltd.
+7.
+Calsonic Kansei Motherson Auto Products Pvt. Ltd.
+8.
+Magneti Marelli Motherson Auto System Pvt. Ltd.
+9.
+Anest Iwata Motherson Private Limited
+Padma Shri 2016 (Fourth Highest Civilian Award - Government of India)
+NDTV Business Leadership Award - Pharmaceutical - 2016
+Lifetime Outstanding Achievement Award - IMA - 2018
+Entrepreneur of the year Award AIMA - 2017
+HOME GAN
+2.
+1.
+Mr. Shanghvi is a recipient of several awards as listed below:
+Mr. Dilip S. Shanghvi is a graduate in commerce from the University of Calcutta. He
+the Managing Director of the Company and Chairman & Managing Director of
+Sun Pharma Advanced Research Company Ltd. He is the founding partner of Sun
+Pharmaceutical Industries, a firm which was later converted into Sun Pharmaceutical
+Industries Limited (SPIL) in 1993. Under his leadership, SPIL has recorded an
+all-round growth in business. He has extensive experience in the pharmaceutical
+industry. As the promoter of SPIL, he has been actively involved in international
+pharmaceutical markets, business strategy, business development and research and
+development functions in the Company.
+is
+Mr. Dilip S. Shanghvi
+62 Years
+areas
+Brief resume of the Director including
+nature of expertise in specific functional
+Age
+Particulars
+PHARMA
+SUN
+2.
+1.
+Nil
+May 29, 2012
+Mr. Sailesh T. Desai
+63 Years
+Mr. Sailesh T. Desai is a
+science graduate from Kolkata
+University and is a successful
+entrepreneur with more
+than three decades of wide
+industrial experience including
+more than two decades in the
+pharmaceutical industry.
+Mr. Kalyanasundaram Subramanian ("Mr. Kal")
+64 Years
+Mr. Kal joined Sun Pharmaceutical Industries Limited (SPIL)
+in January 2010 after 22 years with GSK in various parts
+of the world.
+Mr. Kal is a Chemistry graduate and a Chartered
+Accountant from India with 37 years of experience of
+which some 30 years in the pharmaceutical industry.
+Mr. Kal's career in Pharma industry began when he joined
+Burroughs Wellcome, in New Zealand as Commercial
+Advisor in 1988. His long and varied career with Burroughs
+Wellcome in New Zealand which was acquired by Glaxo
+to become GlaxoWellcome and finally GlaxoSmithKline,
+includes assignments as Vice President, head of Classic
+Brands business of Emerging Markets; Area Director South
+Asia & Managing Director, GSK India; Managing Director
+- GlaxoWellcome, Singapore (Singapore, Indochina &
+Myanmar). Commercial Director - Burroughs Wellcome,
+New Zealand.
+In 2010, Mr. Kal Joined SPIL as the Chief Executive Officer
+to manage India and Emerging Markets (EM) and was
+a board member of the Company. Mr. Kalyansundaram
+Subramanian spearheaded opening of SPIL operations in
+few important markets such as Japan, MENA.
+Mr. Israel Makov
+79 Years
+Mr. Israel Makov is a Non-executive Chairman
+of the Company since May 29, 2012. He is
+also the former President and CEO of Teva
+Pharmaceutical Industries Ltd. He joined
+Teva in 1995 and led the company's global
+expansion, managing over 12 acquisitions,
+two of which were the largest M&A deals
+in the Israeli history at the time. Under
+Mr. Makov's leadership, Teva became the
+undisputed global leader in the generic
+pharmaceutical industry and a global leader in
+the treatment of Multiple sclerosis.
+Mr Israel Makov is Chairman of BioLight -
+an emerging global ophthalmic company
+focused on the discovery, development and
+commercialization of products for ophthalmic
+conditions and Chairman of Micromedic
+Technologies Ltd. - a cluster of companies
+engaged in cancer diagnostics.
+Mr Makov is the former Chairman of Given
+Imaging - the developer and world's leading
+The details of Board and Committee Meetings attended by these Directors during the year 2017-18 are stated in the Corporate Governance Report which forms part of 26th Annual Report.
+The details of remuneration, wherever applicable, are provided in the respective resolution(s).
+In 2012, Mr. Kal moved to USA to assume responsibility for provider of capsule endoscopy and Netafim
+Taro operations in North America.
+He is CEO of Sun Pharma Laboratories Limited.
+February 14, 2017
+March 25, 1999
+1.
+Sun Pharma
+Sun Pharma Laboratories Limited
+Laboratories Limited
+2.
+Sun Pharmaceutical
+Medicare Limited
+3.
+Universal Enterprises
+Private Limited
+- the pioneer and global leader in smart
+irrigation solutions.
+Mr. Israel Makov holds a B.Sc. in Agriculture
+and M. Sc in Economics from the Hebrew
+University, Jerusalem.
+In Jan 2017, Mr. Kal moved back to India to manage India
+and EM regions of SPIL.
+As required under Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") and as required under Secretarial Standard on General
+Meetings issued by the Institute of Company Secretaries of India (SS - 2), the particulars of Directors who are proposed to be appointed / reappointed and/or whose remuneration is proposed
+to be approved at this 26th Annual General Meeting, are given below.
+(Details of Directors proposed to be appointed/ re-appointed)
+PROFILE OF DIRECTORS
+Some of the Company's subsidiaries in India & overseas
+are engaged in substantial business activities. However,
+the Company continues to earn profit on consolidated
+basis and hence there are no specific steps required to
+take and proposed to be taken for improvement other
+than working towards cost optimization.
+2.
+PHARMA
+SUN
+229
+Reasons of loss or inadequate profits and steps
+taken or proposed to be taken for improvement:
+The Company has reported a net loss on standalone basis
+mainly due to the exceptional item of ₹9,505 million in
+respect of the anti-trust litigation for Modafinil in the
+US. But for this exceptional item, the Company would
+have reported a profit at the net level. During the current
+year, the Company continued its efforts of implementing
+various initiatives including optimisation and cost control
+programs.
+The current remuneration being paid to the Whole-
+time Directors (looking at the profile of the position
+and person) are lower than the remuneration being paid
+by the companies of reasonably comparable size in the
+industry in which the Company operates.
+Comparative remuneration profile with respect
+to industry, size of the Company, profile of the
+position and person:
+6.
+1.
+III.
+Details of remuneration proposed for approval of the
+members at this 26th Annual General Meeting of the
+Company are as provided in the resolutions as set out at
+Item No. 7 and 8 of this Notice.
+Remuneration Proposed:
+5.
+Expected increase in productivity and profits in
+measurable terms:
+OTHER INFORMATION
+Pecuniary relationship directly or indirectly with
+the Company, or relationship with the managerial
+personnel, if any:
+7.
+Mr. Sailesh T. Desai, Whole-time Director of the
+Company is highly experienced and provided significant
+contribution in some of the marketing areas for the
+products of the Company.
+Mr. Sudhir V. Valia, Whole-time Director of the Company
+is having rich experience in taxation & finance and has
+successfully contributed towards the growth of the
+Company.
+The Adivasi Sevak Puraskar (2008-09) by the Government of Maharashtra for his
+Contribution towards the welfare of tribals in the field of education
+Best CFO in Pharma and Healthcare CNBC TV 18 CFO Awards
+Best CFO in Pharma and Healthcare CNBC TV 18 CFO Awards
+Best CFO in Pharma and Healthcare CNBC TV 18 CFO Award
+Job Profile and suitability:
+4.
+4
+3
+2009
+2
+2012
+Awards
+1
+Apart from the remuneration and perquisites paid to
+Mr. Sudhir V. Valia and Mr. Sailesh T. Desai and their
+shareholding held directly or indirectly in the Company
+and Mr. Sudhir V. Valia being the brother in law of Mr.
+Dilip S. Shanghvi, Managing Director of the Company,
+they do not have any pecuniary relationship directly
+or indirectly with the Company and its managerial
+personnel.
+Motherson Sumi Systems Limited
+The Company has earned profit of *1,762 million on
+standalone basis for the quarter ended March 31, 2018
+and the Company is taking appropriate measures to
+increase productivity and improve profitability.
+The disclosures as required on all elements of remuneration
+package such as salary, benefits, bonuses, pensions, details of
+fixed components and performance linked incentives along
+with performance criteria, service contract details, notice
+period, severance fees, etc. have been made under the heading
+Corporate Governance forming part of the Annual Report for
+2017-18.
+232
+231
+None of the Directors or Key Managerial Personnel or their relatives
+are in anyway concerned or interested in the above resolution as set
+out at Item no. 11 of this Notice.
+The Board recommends the resolution as set out at item no. 11 of
+the Notice for approval of the members as an Ordinary Resolution.
+Therefore, consent of the members of the Company is being sought
+for ratification of the remuneration payable to the Cost Auditors for
+the financial year ending March 31, 2019.
+In terms of provisions of Section 148(3) of the Companies Act, 2013
+read with Companies (Audit and Auditors) Rules, 2014, members
+ratification is required for remuneration payable to the Cost
+Auditors.
+conducting audit of cost records pertaining to the formulations and
+bulk drugs activities of the Company for the financial year ending
+March 31, 2019 at a remuneration of *20,75,000/- (Rupees Twenty
+Lakhs Seventy Five Thousand Only) excluding reimbursement of out
+of pocket expenses and applicable taxes.
+M/s. Kailash Sankhlecha & Associates, Cost Accountants, have
+been appointed as the Cost Auditors by the Board of Directors
+of the Company on recommendation of the Audit Committee for
+Item No. 11:
+None of the Directors, Key Managerial Personnel or their relatives,
+except Mr. Israel Makov and his relatives to whom this resolution
+relates, are in anyway concerned or interested in the above
+resolution as set out at Item No. 10 of this Notice.
+The Board recommends the resolution set out at Item no. 10 of this
+Notice for approval of the members as a Special Resolution.
+Profile and other particulars of Mr. Israel Makov, as required
+under the provisions of SEBI (Listing Obligations and Disclosure
+Requirements) Regulations, 2015 and Secretarial Standard on
+General Meetings issued by the Institute of Company Secretaries of
+India, are provided under heading "Profile of Directors" forming part
+of this Notice.
+230
+Mr. Israel Makov, having attained the age, beyond the age specified
+in the aforesaid Regulation, the approval of members is being sought
+by way of Special Resolution at the ensuing 26th Annual General
+Meeting of the Company for continuation of his Directorship in the
+Company.
+IV. Disclosures:
+Mr. Israel Makov, is highly experienced in Pharmaceutical Industry as
+per detailed disclosure under heading "Profile of Directors" forming
+part of this Notice and has successfully contributed towards the
+growth of the Company.
+In terms of the recently notified Regulation 17(1A) of SEBI (Listing
+Obligations and Disclosure Requirements) Regulations, 2015 to be
+effective from April 01, 2019, the consent of the members by way of
+Special Resolution is required for continuation of a Non-Executive
+Director of a company beyond the age of seventy five years.
+Item No. 10:
+None of the Directors, Key Managerial Personnel or their relatives,
+except Mr. Kal and his relatives to whom this resolution relates, are
+in any way concerned or interested in the above resolution as set out
+at Item no. 9 of this Notice.
+The Board recommends the resolution set out at Item no. 9 of this
+Notice for approval of the members as an Ordinary Resolution.
+Further the members may note that, Mr. Kal is also CEO and
+Whole-time Director of Sun Pharma Laboratories Limited (SPLL),
+a wholly owned subsidiary of the Company and SPLL at its Board
+meeting held on May 24, 2018 have re-appointed and approved
+the maximum remuneration of Mr. Kal as the CEO & Whole-time
+Director of SPLL for a period of two (2) years i.e. from February 13,
+2019 to February 12, 2021, subject to approval of the members of
+SPLL at the ensuing annual general meeting of SPLL.
+The members' approval is being sought for re-appointment of Mr.
+Kal as a Whole-time Director of the Company for a period of 2
+(two) years effective from February 14, 2019 to February 13, 2021
+without any remuneration, in terms of applicable provisions of the
+Act and rules made thereunder.
+Mr. Kal, is having rich experience in the pharmaceutical industry and
+has successfully contributed towards the growth of the Company.
+Profile and other particulars of Mr. Kal, as required under the
+provisions of SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 and Secretarial Standard on General Meetings
+issued by the Institute of Company Secretaries of India, are provided
+under heading "Profile of Directors" forming part of this Notice.
+The draft agreement to be entered into with Mr. Kal is available for
+inspection by any member of the Company at the Registered Office
+of the Company on all working days except Saturdays and Sundays
+between 11:00 a.m. IST and 1:00 p.m. IST up to the date of this
+Annual General Meeting and at the venue of this Annual General
+Meeting during Meeting hours.
+The brief terms of appointment of Mr. Kal as recommended by
+Nomination and Remuneration Committee and approved by the
+Board of Directors are provided in the Resolution set out at Item No.
+9 of this Notice.
+Mr. Kal fulfils all the conditions given under Section 196(3) and
+Schedule V of the Companies Act, 2013 ("Act") for being eligible for
+his re-appointment. He is not disqualified in terms of Section 164 of
+the Act, from being appointed as Director.
+Mr. Kal has been re-appointed as the Whole-time Director of the
+Company by the Board of Directors on recommendation of the
+Nomination and Remuneration Committee of the Company, at their
+respective meetings held on May 25, 2018, subject to approval of
+members, for a further term of 2 (two) years i.e. from February 14,
+2019 upto February 13, 2021 without any remuneration.
+Mr. Kalyanasundaram Subramanian ("Mr. Kal”) was appointed as
+the Whole-time Director of the Company by way of an Ordinary
+Resolution passed by the members at the 25th Annual General
+Meeting of the Company for a period of 2 (two) years effective from
+February 14, 2017 and their present term of appointment is upto
+February 13, 2019 without any remuneration.
+Item No. 9
+Mr. Israel Makov, Non-executive Director and Chairman of the
+Company, is currently of 79 years.
+November 14, 2017
+Among the many accolades he has received, Mr. Sehgal was
+adjudged Man of the Year 2010 by Auto Car Professional Magazine.
+He received Ernst & Young Entrepreneur of the Year Award for
+manufacturing in 2012. He has been adjudged the Best CEO, 2013
+for Auto Ancillaries by Business Today Magazine in India. He was
+adjudged as the "CEO of the Year 2015" by Business Standard. He
+also received the Best CEO award in 2016 in all Asia Executive Team
+Rankings for autos and auto parts sector by Institutional Investor
+Magazine. Recently Mr. Sehgal has been declared EY Entrepreneur
+of the Year 2016.
+He is a visionary who has the ability of sighting opportunities for the
+benefit of the Group whether it be in the form of joint ventures or
+acquisitions.
+Mr. Sudhir V. Valia
+61 Years
+Mr. Sudhir V. Valia holds a Bachelor's degree in
+Commerce from University of Mumbai and is also
+a qualified Chartered Accountant with more than
+three decades of taxation and finance experience.
+He has been the Director of Sun Pharmaceutical
+Industries Limited since 1994 and is also on the
+Board of Taro Pharmaceutical Industries Ltd.
+Mr. Valia has won several awards including CNBC
+TV 18's CFO of the Year in the Pharmaceutical and
+Healthcare Sectors for two consecutive years -
+2011 and 2012, as well as in the year 2009. He
+is actively involved in the field of social activities
+and he was awarded the Adivasi Sevak Puraskar
+(2008-2009) by the Government of Maharashtra
+for his contribution towards the welfare of tribals,
+particularly in the field of education in his capacity
+as visionary and Director of Shantilal Shanghvi
+Foundation. He is also a Director of Krishna
+Vrundavan Pratishthan.
+23456N
+Mr. Gautam Doshi
+65
+Mr. Gautam Doshi, a Chartered Accountant and Masters in
+Commerce, has been in professional practice for over 40 years. He
+advises various industrial groups and families and also serves as
+director on boards of public listed and unlisted companies.
+Mr. Doshi has more than 40 years of experience in wide range
+of areas covering Mergers and Acquisitions, Direct, Indirect
+and International Taxation, Transfer Pricing, Accounting and
+Corporate and Commercial Laws. He has been actively involved
+in conceptualizing and implementing a number of mergers and
+restructuring transactions both domestic and cross border, involving
+many of the top 20 listed companies on BSE as also those forming
+part of FTSE 100.
+A prolific speaker, Mr Doshi has addressed several seminars and
+conferences within and outside of India and courses organized by
+the Institute of Chartered Accountants of India, International Fiscal
+Association, Other professional bodies and Chambers of Commerce.
+He has served on the Councils of Western Region as also All India
+level of the Institute of Chartered Accountants of India which has
+the task of development and regulation of profession of accountancy
+in India. During his tenure on the Council, he served on several
+committees and contributed significantly to the work of Board of
+Studies which is responsible for education and system of training of
+students. He also served as Chairman of Committees on direct and
+indirect taxation.
+May 25, 2018
+Reliance Communications Infrastructure Limited
+Reliance MediaWorks Limited
+Connect Capital Private Limited
+Reliance Telecom Limited
+January 31, 1994
+1.
+Sun Pharma Advanced Research Company
+Limited
+• Member of Securities Allotment Committee
+1.
+Sun Pharma Laboratories Limited
+3.
+6.
+Aditya Clean Power Ventures Private Limited
+Sun Petrochemicals Private Limited
+Suraksha Asset Reconstruction Private Limited 6.
+Aditya Thermal Energy Private Limited
+Fasttrack Housing Finance Limited
+Reliance Anil Dhirubhai Ambani Group Limited
+Piramal Phytocare Limited
+Reliance Home Finance Limited
+8.
+Banda Real Estate Private Limited
+8.
+Alfa Infraprop Private Limited
+9.
+Kudal Real Estate Private Limited
+9.
+2.
+Universal Enterprises Private Limited
+Sun Pharma Advanced Research Company Limited:
+Member of Corporate Social Responsibility Committee
+• Member of Fund Management Committee
+March 01, 1993
+Economic Times
+Association) es Business Leader of the Year Award 2014
+CNBC-TV18, Outstanding Business Leader of the Year 2014
+Forbes Entrepreneur for the Year 2014
+eur of the Year- Ernst and Young 2011
+World I Entrepreneur
+Indian of
+of 
+the Year (Business) CNN IBN 2011
+Businessman of the Year- Business India 2011
+Entrepreneur of the Year- Ernst and Young 2010
+Entrepreneur of
+the
+Year- Economic Times 2008
+CEO of the Year Business Standard 2008
+First Generation Entrepreneur of the Year- CNBC TV 18 2007
+Pharmaceutical Company IMC Juran Quality Medal 2007
+Entrepreneur of the Year (Healthcare and Life Sciences) Ernst and Young 2005
+Membership/Chairmanships of
+Committees of other public Companies
+10.
+12.
+13.
+14.
+15.
+16.
+17.
+Date of First appointment on the Board
+Directorship held in other companies
+(excluding foreign companies & Section 8
+companies)
+1.
+Sun Pharma Advanced Research Company Limited
+2.
+Sun Petrochemicals Private Limited
+Alfa Infraprop Private Limited
+4.
+Aditya Clean Power Ventures Private Limited
+11.
+2011
+10.
+10.
+Member of Stakeholders Relationship Committee
+Member of Corporate Social Responsibility (CSR) Committee
+Member of Risk Management Committee
+Member of Wilful Defaulter's Review Committee
+Reliance MediaWorks Limited
+Chairman of Investor Grievance Committee
+• Member of Audit Committee
+Reliance Telecom Limited
+• Member of Corporate Social Responsibility Committee
+Piramal Phytocare Limited
+Chairman of Audit Committee
+Member of Nomination and Remuneration Committee
+Reliance Nippon Life Insurance Company Limited
+Member of Board Audit & Compliance Committee
+• Member of Board Risk Management Committee
+• Member of Board Policyholders' Protection Committee
+Member of Board Investment Committee
+Member of Nomination and Remuneration Committee
+Member of Board Share Transfer Committee
+8000 Equity Shares
+Mr. Dilip S. Shanghvi is Brother-in-law of Mr. Sudhir V. Valia, Whole-time Director of
+the Company
+No. of Shares held in the Company (singly or 230285690 Equity Shares
+jointly as first holder) as on March 31, 2018
+Inter-se Relationship between Directors
+Particulars
+Age
+Brief resume of the Director including
+nature of expertise in specific functional
+areas
+Date of First appointment on the Board
+Directorship held in other companies
+(excluding foreign companies & section
+8 companies)
+Mr. Vivek Chaand Sehgal
+61
+Mr. Vivek Chaand Sehgal is the Chairman of Samvardhana
+Motherson Group (SMG). In 1977 he entered the field of
+manufacturing with a cable and wire manufacturing unit.
+SMG is present in 37 countries with over 230 facilities across
+the globe. Motherson Sumi Systems Limited (MSSL), the flagship
+company of SMG, is now one of the largest auto ancillary
+companies in India.
+The Group has a diversified product range covering wiring
+harnesses, rear view mirrors, integrated plastic modules, lighting
+systems and a wide range of modules and components. SMG today
+is one of the leading suppliers of rearview mirrors globally & the
+leading supplier of polymer modules in Europe along with market
+leadership positions in most of the other product verticals in India.
+Under the leadership of Mr. Sehgal, SMG has evolved as a leading
+full system solutions provider to the global automotive industry
+Member of Board Asset Liability Management Committee
+• Member of Board Corporate Social Responsibility Committee
+Member of Board Nomination & Remuneration Committee
+Aashni Ecommerce Private Limited
+• Member of Audit Committee
+Member of Nomination & Remuneration Committee
+ITI Mutual Fund Trustee Private Limited
+11.
+Capricon Realty Limited
+11.
+ITI Reinsurance Limited
+12.
+Reliance Nippon Life Insurance Company Limited
+1.
+Sun Pharma Advanced Research Company
+1.
+Limited:
+Reliance Communications Infrastructure Limited
+Member of Audit Committee
+• Chairman of Corporate Social Responsibility
+Committee
+2.
+Reliance Home Finance Limited
+Chairman of Fund Management Committee
+2.
+Member of Audit Committee
+• Member of Securities Allotment Committee 3.
+Sun Pharma Laboratories Limited:
+⚫ Chairman of Corporate Social
+Responsibility Committee
+• Member of Audit Committee
+Mr. Sudhir V. Valia is Brother-in-law of Mr. Dilip
+S. Shanghvi, Managing Director of the Company
+14345019 Equity Shares
+4.
+5
+5.
+6.
+None
+• Member of Stakeholders Relationship
+Committee
+Year
+Mr. Sudhir V. Valia, Whole-time Director is recipient of following awards:
+Recognition or awards:
+Unit: Sun Pharmaceutical Industries Limited
+Vikhroli (West), Mumbai - 400083.
+C 101, 247 Park, L.B.S.Marg,
+Linkintime India Private Limited
+To
+submitted their KYC documents as per the SEBI Circular No SEBI/HO/MIRSD/DOP1/CIR/P/2018/73
+This Form is required to be submitted by those shareholders who are holding shares in physical form and have not yet
+Registered Office: SPARC, Tandalja, Vadodara - 390 012. India
+If you have already submitted the documents for updating KYC or have dematerialised your physical securities then please do not submit the
+documents again.
+Compliance Officer
+Ashok I. Bhuta
+Sd/-
+For Sun Pharmaceutical Industries Ltd.
+Yours faithfully,
+KYC FORM
+Kindly note that, as per SEBI directive, enhanced due diligence procedure will be applicable if KYC requirements are not fulfilled.
+Note:- 1.* The relevant formats are available on the website of our RTA- www.linkintime.co.in → Resources→ Downloads→ General.
+2. Single copy of document is sufficient for updating multiple requests.
+• To be mentioned in KYC form printed overleaf
+• Nomination Registration form *
+• To be mentioned in KYC form printed overleaf
+• Legible copy of Bank Statement/Passbook with details of shareholder viz.
+name, address, account number etc. duly attested by Bank Manager or
+equivalent (If shareholders' name is not printed on cheque leaf)
+• Original cancelled cheque leaf
+• Format for signature verification *
+Legible copy of Bank Statement/Passbook with details of registered
+shareholder viz. name, address, account number etc. duly attested by Bank
+Manager or equivalent (If shareholders' name is not printed on cheque leaf)
+• Affidavit for change of signature shares/bonds, duly notarised on non-judicial
+stamp paper of Rs. 100/- *
+a. Utility bill (not older than 3 months) b. Aadhaar Card c. Passport.
+• Original cancelled cheque leaf of registered shareholder
+• Self-attested legible copy of address proof. Any 1 from,
+⚫ Self- attested legible copy of PAN card (exempted for Sikkim Shareholders)
+(Shareholders from Sikkim can provide self-attested copy of Aadhaar
+Card/Voters Card/Driving License/Passport or any other identity proof as
+issued by Govt.)
+SUPPORTING DOCUMENTS
+NOMINATION
+F
+MOBILE NO.
+Further as per SEBI circular SEBI/LAD-NRO/GN/2018/24 dated 08th June 2018, BSE circular no. LIST/COMP/15/2018-19 dated 05th
+July, 2018 and NSE Ref. No NSE/CML/2018/26 dated 09th July, 2018 shareholders, are advised to dematerialise their physical
+securities since requests for effecting transfer of physical securities (except in case of transmission or transposition of securities)
+shall not be permitted from 05th December 2018.
+E
+Date:
+No of Shares:
+ATTENDANCE SLIP
+Registered Office: SPARC Tandalja, Vadodara - 390 012, Gujarat, India Tel Nos: 0265-6615500/600/700 Fax No: 0265-2354897
+Corporate Office: Sun House, Plot No. 201 B/1, Western Express Highway, Goregaon -East, Mumbai - 400 063, India.
+CIN: L24230GJ1993PLC019050 Website: www.sunpharma.com Email: secretarial@sunpharma.com
+Sun Pharmaceutical Industries Ltd.
+PHARMA
+SUN
+NB: The above details will not be updated if the supporting documents are not attached and are not duly self attested and if
+the Form is not signed by all the joint shareholders.
+PIN
+City
+(registered holder)
+Address:
+Mr/Ms/Mrs
+Sign:
+Joint holder 2
+Joint holder 1
+Sign:
+Folio No:
+Sign:
+Registered holder
+Note:- 1. Shareholders from Sikkim can provide self-attested copy of Aadhaar Card/Voters Card/Driving License/Passport or
+any other identity proof as issued by Govt.
+F) For registering the nominee details by the registered shareholder only: ☐ Nomination Registration form
+E) For updating Mobile No. of registered shareholder only:
+D) For Updating the email id of registered shareholder only:
+○ Affidavit ☐ Format for signature verification ◎Original cancelled cheque leaf ☐ Bank Passbook/Bank Statement
+C) For registering the Specimen Signature of registered shareholder and joint shareholders
+Bank Passbook/Bank Statement
+○ Aadhaar/Passport/utility bill O Original cancelled cheque leaf
+B) For registering Bank details of registered shareholder only
+◇ Joint holder 2
+◇ Joint holder 1
+○ Registered shareholder
+We are forwarding herewith the required supporting documents by ticking in the appropriate checkbox below for all the fields
+where the status is shown as 'Required' in your first request letter dated July 12, 2018 for updation of necessary KYC details.
+A) For registering PAN of registered shareholder and joint shareholders
+Dear Sir Madam,
+I We hereby state that the above mentioned details are true and correct and we consent towards updating the
+particulars based on the self-attested copies of the documents enclosed with this letter by affixing my/our signature(s)
+to it
+TWENTY SIXTH ANNUAL GENERAL MEETING ON WEDNESDAY, SEPTEMBER 26, 2018 AT 02:45 P.M.
+I/We hereby record my presence at the Twenty Sixth Annual General Meeting of the Company at Crystal Hall, Grand Mercure Vadodara
+Surya Palace, Opposite Parsi Agyari, Sayajigunj, Vadodara - 390 020, Gujarat, India on Wednesday, September 26, 2018 at 02:45 P.M. IST
+EMAIL ID
+SPECIMEN SIGNATURE
+વડોદરા
+bhai Patel
+lospital
+Lalita Tower
+લલિતા ટાવર
+100
+Axis Bank
+લેમન ટ્રી
+હોટેલ વડોદરા
+Lemon Tree
+Hotel Vadodara
+વલ્લભભાઈ પટેલ
+સરદાર
+સયાજી હોટલ
+Sardar Vallabhbhai Patel
+Sayaji Hotel, Vadodara
+સયાજીગંજ
+પોલીસ સ્ટેશન
+Facult
+Overhead
+Water Tank
+D
+1.3 km
+4-6 mins
+Vadodara O
+Crystal Hall, Grand Mercure Vadodara Surya Palace, Vadodara
+Prominent Landmark: Opposite Parsi Agyari, Sayajigunj
+Route Map to 26th AGM Venue
+and
+on...
+233
+33
+None
+Nil
+None
+Nil
+3740747 Equity Shares
+None
+Member of Nomination and
+Remuneration Committee
+• Member of Corporate Social Responsibility Committee
+Sayajiganj Police Station
+D
+Blue dart
+બ્લૂ ડાર્ટ
+Baroda museum
+C
+BANK ACCOUNT DETAILS
+B
+PAN
+REQUEST TO BE UPDATED
+Sr.No
+A
+Kindly refer the list of supporting documents to be submitted for updating your KYC details.
+We refer to the first request letter dated July 12, 2018 sent by Link Intime India Pvt. Ltd., for updation of necessary KYC details, to
+those shareholders of Sun Pharmaceutical Industries Ltd., who are holding shares in physical form and have not yet submitted
+their KYC documents. The SEBI Circular No. SEBI/HO/MIRSD/DOP1/CIR/P/2018/73 dated 20th April 2018 has directed all the listed
+companies to record the PAN of all the shareholders and Bank Account details of registered shareholder. We request you to submit
+the relevant documents in the KYC FORM provided overleaf, by ticking in the appropriate checkboxes on the basis of requirement
+shown under the above referred letter, and send the KYC FORM duly filled alongwith relevant documents, to our RTA- Link Intime
+India Pvt. Ltd., within 21 days from the receipt of this letter.
+Subject: - Second reminder letter for Updating the KYC details and intimation to dematerialise physical securities.
+Dear Sir/Madam,
+Date: August 20, 2018
+PHARMA
+SUN
+Shareholders (holding shares in Physical Form)
+To,
+India Bulls
+CIN: L24230GJ1993PLC019050, www.sunpharma.com
+Tel.: (91-22) 43244324/1234
+Goregaon (East), Mumbai - 400063 India
+Western Express Highway,
+Sun House, Plot No. 201 B/1,
+Sun Pharmaceutical Industries Ltd.
+00
+S
+Jetalpur Rd
+Parsi
+Agyari
+☐
+Grand Mercure
+Vadodara Surya Palace
+Jara - Branch &...
+ICICI Bank Vasna,
+Vadodara Branch &...
+ભારત બુલ્સ
+Fax.: (91-22) 43244343
+2014
+Registered Folio/DP ID & Client ID:
+Name and address of the Member:
+1.
+Motherson Sumi Systems Limited
+2.
+• Member of Corporate Social Responsibility Committee
+Motherson Auto Limited
+Sun Pharma Laboratories
+Limited
+Sun Pharma Laboratories Limited
+Nil
+In case of multiple proxies, the proxy later in time shall be accepted.
+4.
+Please affix appropriate revenue stamp before putting signatures.
+3.
+All alterations made in the form of proxy should be initialed.
+2.
+The form of Proxy must be deposited at the Registered Office of the Company at SPARC, Tandalja, Vadodara - 390 012, Gujarat, India,
+at least 48 (Forty Eight) hours before the scheduled time of the commencement of the said Meeting.
+Membership / Chairmanships of
+Committees of other public Companies
+1/-
+2018
+day of
+Signed this
+1.
+Note:
+Signature of Proxy holder(s):
+Signature of Shareholder:
+Special Resolution for re-appointment and remuneration of Mr. Sudhir V. Valia (DIN: 00005561) as Whole-time Director
+Special Resolution for re-appointment and remuneration of Mr. Sailesh T. Desai (DIN: 00005443) as Whole-time Director
+Re-appointment of Mr. Kalyanasundaram Subramanian (DIN: 00179072) as Whole-time Director without any remuneration
+Special Resolution for continuation of Directorship of Mr. Israel Makov (DIN:05299764)
+Ratification of Remuneration of Cost Auditors of the Company for the financial year 2018-19
+Appointment of Mr. Gautam Doshi (DIN: 00004612) as an Independent Director of the Company
+Appointment of Mr. Vivek Chaand Sehgal (DIN: 00291126) as Independent Director of the Company
+11.
+10.
+9.
+8.
+Affix
+Revenue
+Stamp of
+7.
+Renu Farms Limited
+Motherson Auto Limited
+The Company has made application to Central Government for approval of remuneration to Mr. Sudhir Valia for 2017-18 as per
+his entitlement as provided above, the approval of which is awaited. The amount of remuneration paid to Mr. Sudhir Valia for
+2017-18, is subject to approval of Central Government.
+* Company's contribution to provident fund and superannuation fund or annuity fund, gratuity payment as per Company's rules and encashment of
+leave at the end of his tenure, are not included in the computation of, ceiling on remuneration and perquisites as aforesaid.
+1.54
+5.64
+appointment*
+approved by Board
+and by Members at the
+24th AGM, subject to
+approval of the Central
+Government, for the
+current tenure of
+(in crores)
+Maximum
+Remuneration p.a. as
+3.02
+1.31
+Amount of
+Remuneration paid
+for 2017-18, after
+excluding Contribution
+to PF which is excluded
+for calculation of limit
+as per Schedule V of the
+Companies Act, 2013
+1.43
+3.36
+actuals)
+to PF and Perquisites
+such as reimbursement of
+electricity charges, motor
+vehicle charges, etc. at
+Actual Amount paid out
+of the amount entitled
+for the year 2017-18,
+(including contribution
+13.
+3.93
+1.38
+Mr. Sailesh T. Desai
+Mr. Sudhir V. Valia
+Name of the Director
+The details of remuneration that Mr. Sudhir V. Valia and Mr. Sailesh T. Desai, Whole-time Directors are entitled, the remuneration
+actually paid to them for the last financial year 2017-18 subject to approval of the Central Government and maximum limit of
+remuneration as approved by the members are detailed below:
+3.
+Past remuneration:
+2.
+MothersonSumi INfotech & Designs Limited
+Inter-se Relationship between Directors None
+No. of Shares held in the Company (singly or Nil
+jointly as first holder) as on March 31, 2018
+10.
+Motherson Bergstrom HVAC Solutions Pvt. Ltd.
+11.
+A Basic Concepts Designs Pty. Ltd.
+12.
+Amount of remuneration entitled
+(including contribution to PF) for
+the year 2017-18, as approved
+by the Board within the limit as
+approved by the members (excluding
+Perquisites such as reimbursement
+of electricity charges, motor vehicle
+charges, etc. which shall be taken at
+actuals)
+No. of shares......
+6.
+Re-appointment of Mr. Sudhir V. Valia (DIN: 00005561), who retires by rotation and being eligible offers himself for re-appointment
+SPECIAL BUSINESS:
+E-mail Id :
+Joint Holder(s):..
+No. of Shares held :
+Registered address:
+Name of the member:
+[Form MGT-11]
+[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014]
+PROXY FORM
+Registered Office: SPARC Tandalja, Vadodara - 390 012, Gujarat, India Tel Nos: 0265-6615500/600/700 Fax No: 0265-2354897
+Corporate Office: Sun House, Plot No. 201 B/1, Western Express Highway, Goregaon -East, Mumbai - 400 063, India.
+CIN: L24230GJ1993PLC019050 Website: www.sunpharma.com Email: secretarial@sunpharma.com
+Sun Pharmaceutical Industries Ltd.
+PHARMA
+SUN
+Cut here
+*Members who have not updated their PAN with the Company/ Depository
+Participant shall use e-voting code printed on the address label on the envelope
+in the PAN field. For those having email IDs the e-voting code is sent by email.
+.Folio No./ DP Id & Client Id :
+* PAN
+Use your PAN.
+User ID
+ELECTRONIC VOTING PARTICULARS
+180730031
+(Electronic Voting Sequence Number)
+EVSN
+Member/ Proxy holder desiring to attend the meeting should bring his/her copy of the Notice and Annual Report for reference at the
+meeting.
+Member/Proxy holder wishing to attend the meeting must bring the Attendance Slip to the meeting and hand it over at the entrance
+duly signed.
+Signature of Proxy:
+(2)
+(1)
+NOTES:
+Signature of the Attending Member:
+Joint Holder 2:
+Joint Holder 1 :
+Use your DP ID/ Client
+ID/ Folio No.
+5.
+I/We, being the member(s), holding
+1.
+Re-appointment of Mr. Dilip S. Shanghvi (DIN: 00005588), who retires by rotation and being eligible offers himself for
+re-appointment
+|Declaration of dividend on equity shares for the financial year ended March 31, 2018
+Adoption of audited consolidated financial statements of the Company for the financial year ended March 31, 2018 and the
+report of the Auditors thereon
+Adoption of audited standalone financial statements of the Company for the financial year ended March 31, 2018 and the
+reports of the Board of Directors and Auditors thereon
+b.
+4.
+3.
+23
+2.
+a.
+1.
+ORDINARY BUSINESS:
+No.
+Resolution Resolution
+shares of Sun Pharmaceutical Industries Limited, hereby appoint:
+as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Twenty Sixth Annual General Meeting of the Company,
+to be held on Wednesday, September 26, 2018 at 02:45 P.M. at Crystal Hall, Grand Mercure Vadodara Surya Palace, Opposite Parsi Agyari,
+Sayajigunj, Vadodara - 390 020, Gujarat, India and at any adjournment thereof in respect of such resolutions as are indicated overleaf:
+Address:
+Signature:
+E-mail Id:
+Name:
+3.
+or failing him / her;
+or failing him/her;
+Signature:
+Address:
+Address:
+Signature:
+E-mail Id:
+Name:
+2.
+E-mail Id:
+Name:
+or failing him / her;
+JRD Tata Corporate Leadership Award AIMA (All India Management
+Director
+Corporate Information
+Billerica, Massachusetts, USA
+37 Pharmalucence Inc.
+Brunswick, New Jersey, USA
+Wilmington, Massachusetts, USA
+36 Ohm Laboratories, Inc.
+35 Dusa Pharmaceuticals Inc.
+Chattanooga, USA
+33 Ranbaxy Pharmaceuticals (Pty) Ltd.
+Roodepoort, Johannesburg, South Africa
+34 Chattem Chemicals, Inc.
+Penza, Russia
+32 JSC Biosintez
+Cluj, Romania
+31 S.C Terapia S. A.
+38 Sun Pharmaceutical Industries Inc.
+Cranbury, New Jersey, USA
+30 Ranbaxy Nigeria Limited
+Lagos (Magboro) Nigeria
+28 Taro Pharmaceutical Industries Ltd.
+Haifa Bay, Israel
+27 Alkaloida Chemical Company Zrt,
+Tiszavasvari, Kabay, Hungary
+October City, Giza, Egypt
+26 Ranbaxy Egypt (L.L.C.)
+25 Taro Pharmaceuticals Inc.
+Brampton, Ontario, Canada
+Joydevpur, Gazipur, Bangladesh
+Notes
+23 Sun Pharmaceutical Industries (Australia)
+Pty Ltd., Port Fairy, Australia
+22 Sun Pharmaceutical Industries (Australia)
+Pty Ltd., Latrobe, Australia
+21 Sun Pharmaceutical Medicare Ltd.
+Baska, Gujrat, India
+20 Sun Pharma Laboratories Ltd.
+Setipool, Sikkim, India
+29 Ranbaxy Malaysia Sdn. Bhd.
+Kuala Lumpur, Malaysia
+Offices
+Registered office
+Sun Pharma Advanced Research Centre
+(SPARC), Tandalja,
+/concept, content and design at AICL (hello@aicl.in)
+www.sunpharma.com
+CIN: L24230GJ1993PLC019050
+CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063, Maharashtra, India.
+Tel: (+91 22) 4324 4324, Fax: (+91 22) 4324 4343
+SUN HOUSE
+PHARMA
+SUN
+Ohm Laboratories Inc., Terminal Road, New
+Brunswick, New Jersey 08901 USA.
+US
+Taro Pharmaceuticals Inc., 130 East Drive,
+Brampton, Ontario L6T 1C1, Canada.
+Canada
+14 Hakitor Street, P.O. Box 10347 Haifa Bay
+2624761, Israel.
+Chemistry and Discovery Research Israel,
+Israel
+3. Village Sarhaul, Sector-18, Gurgaon -
+122015 (Haryana)
+2. 17-B, Mahal Industrial Estate, Mahakali
+Caves Road, Andheri (East), Mumbai -
+400 093, Maharashtra.
+1. Sun Pharma Advanced Research Centre,
+F.P.27, Part Survey No. 27, C.S. No. 1050,
+TPS No. 24, Village Tandalja, District,
+Vadodara 390 020, Gujarat.
+India
+Major R&D centres
+email: secretarial@sunpharma.com
+Fax: (022)-4324 4343
+CIN: L24230GJ1993PLC019050
+Tel: (022)-4324 4324
+Sun House, CTS No. 201 B/1,
+Western Express Highway,
+Goregaon (E), Mumbai 400063,
+Maharashtra.
+Corporate Office
+Vadodara 390 020, Gujarat.
+18 Sun Pharma Laboratories Ltd.
+Jammu, Jammu & Kashmir, India
+19 Sun Pharma Laboratories Ltd.
+Ranipool, Sikkim, India
+16 Toansa, Punjab, India
+17 Sun Pharma Laboratories Ltd.
+Guwahati, Assam, India.
+24 Sun Pharmaceutical (Bangladesh) Ltd.
+10 Ahmednagar, Maharashtra, India
+11 Ankleshwar, Gujarat, India
+12 Dahej, Gujarat, India
+Director (w.e.f. May 25, 2018)
+Gautam Doshi
+Director (w.e.f. November 14, 2017)
+Vivek Chaand Sehgal
+13 Maduranthakam, Tamilnadu, India
+14 Malanpur, Madhya Pradesh, India
+15 Panoli, Gujarat, India
+Rekha Sethi
+Director
+Ashwin Dani
+Director
+Keki M. Mistry
+Director (upto November 15, 2017)
+C. S. Muralidharan (w.e.f. June 19, 2017)
+Uday V. Baldota (upto June 19, 2017)
+Hasmukh S. Shah
+Whole-time Director
+Kalyanasundaram Subramanian
+Whole-time Director
+Sailesh T. Desai
+Whole-time Director
+Sudhir V. Valia
+Managing Director
+Dilip S. Shanghvi
+Chairman
+Israel Makov
+Board of Directors
+S. Mohanchand Dadha
+Director
+Company Secretary
+Chief Financial Officer
+Auditors
+9 Silvassa, Dadra & Nagar Haveli, India
+8 Paonta Sahib, Himachal Pradesh, India
+7 Mohali, Punjab, India
+Halol, Gujarat, India
+6
+5 Ponda, Goa, India
+Dadra, Dadra & Nagar Haveli, India
+4
+3 Baddi, Himachal Pradesh, India
+Karkhadi, Gujarat, India
+Sunil R. Ajmera
+1 Dewas, Madhya Pradesh, India
+2
+rnt.helpdesk@linkintime.co.in
+SRBC & CO LLP
+Chartered Accountants
+Operational manufacturing plants
+Link Intime India Pvt. Ltd.
+C 101, 247 Park,
+Registrars & Share
+Transfer Agents
+400 083
+Tel: (022)-49186000
+Fax: (022)-49186060
+E-mail: sunpharma@linkintime.co.in
+LBS Marg, Vikhroli (West),
+Mumbai
+a)
+b)
+c)
+the Directors have taken proper and sufficient care for the
+maintenance of adequate accounting records in accordance
+with the provisions of the Act for safeguarding the assets of
+the Company and for preventing and detecting fraud and other
+irregularities;
+the Directors have selected such accounting policies and
+applied them consistently and made judgments and estimates
+that are reasonable and prudent so as to give a true and fair
+view of the state of affairs of the Company as at March 31,
+2018 and of the loss of the Company for the year ended on
+that date;
+The information on conservation of energy, technology absorption
+and foreign exchange earnings and outgo as stipulated under Section
+134(3)(m) of the Act read with Rule 8 of the Companies (Accounts)
+Rules, 2014, is provided as 'Annexure - G' to this Report.
+DIRECTORS' RESPONSIBILITY STATEMENT
+Pursuant to the requirements under Section 134(5) read with
+Section 134(3)(c) of the Act, with respect to Directors' Responsibility
+Statement, it is hereby confirmed that:
+the Directors have prepared the annual accounts on a going
+concern basis;
+EMPLOYEES' STOCK OPTION SCHEMES
+The Company has two Employees' Stock Option Schemes, one
+through Trust Route and the other by Direct Route, both inherited
+from erstwhile Ranbaxy Laboratories Limited ("Ranbaxy"). The
+scheme through Direct Route has been named as Sun Pharma
+e)
+the Directors have laid down internal financial controls to
+be followed by the Company and that such internal financial
+controls are adequate and were operating effectively; and
+28
+Enhanced drug demand in geriatric care and lifestyle diseases
+such as obesity, hypertension, depression and diabetes will drive
+pharmaceutical consumption in these markets.
+d)
+WHISTLE BLOWER POLICY/VIGIL MECHANISM
+To create enduring value for all stakeholders and ensure the highest
+level of honesty, integrity and ethical behaviour in all its operations,
+the Company has adopted a 'Global Whistle Blower Policy' for Sun
+Pharmaceutical Industries Limited and all its subsidiaries, in addition
+to the existing Global Code of Conduct that governs the actions of
+its employees. Further details on vigil mechanism of the Company
+are provided in the Corporate Governance Report, forming part of
+this Report.
+• Adoption of newer medical technologies as well as government
+policies of promoting low-cost generics will propel growth in these
+markets.
+Disclosures with respect to the Employees' Stock Option Schemes
+in compliance with Securities and Exchange Board of India (Share
+Based Employee Benefits) Regulations, 2014 are available on the
+Company's website and can be accessed at: http://www.sunpharma.
+com/pdflist/all-documents.
+8.6%
+7.6%
+8.3%
+7.2%
+5.6% 6.3% 6.5%
+Chart 12 R&D investment
+As on 31 March, 2018
+Sun Pharma's cumulative R&D investment
+*130 Bn
+R&D is critical for Sun Pharma and remains a key determinant of
+its future growth. Thus, Sun Pharma spent 8.6% of its sales on R&D
+during FY18. The Company is focussing more on developing specialty
+products and technically complex offerings to differentiate itself
+from competition. It also has a robust Intellectual Property Rights
+team, enabling it to patent its innovations globally and develop non-
+infringing products.
+The Company has commercialised a formidable product pipeline with
+successful offerings in liposomal products, lyophilised injections, nasal
+sprays, ointments, liquids and oral products among others.
+The Company's capable team of research scientists underpins its
+research and development capacities. It has many state-of-the-art
+research centres located across the world that provide facilities for
+developing generic drugs, Active Pharmaceutical Ingredients (APIs)
+and Novel Drug Delivery Systems (NDDS). Moreover, it is focussing
+on development of New Chemical Entities (NCEs) for global markets
+and has made significant investments in this field. Sun Pharma's R&D
+centres have been successfully audited and approved by international
+regulatory authorities, including the USFDA and European authorities.
+Sun Pharma services both regulated and emerging pharmaceutical
+markets with its diverse product range of branded and generics
+products. Its robust research and development (R&D) capabilities
+has helped the Company develop technology-intensive products and
+deliver them at affordable prices to international markets. It has a
+wide-ranging portfolio of 2,000+ products across the world.
+Research & development - delivering through
+innovation
+Maintaining leadership in existing markets by offering innovative
+solutions to consumers.
+10.4
+7.0
+4.4
+FY12
+Cumulative NDA/BLA
+approved
+39
+Cumulative ANDAS
+filed
+561
+R&D investments (% of Sales)
+R&D investments (* Billion)
+FY18
+Expanding presence across OTC sub-categories in various markets.
+FY17
+FY15
+illl
+19.6
+23.1 22.5
+23.0
+FY14
+FY13
+FY16
+Continuing to invest in the accelerating OTC business across key
+markets through brand building and brand extensions.
+•
+•
+Ensuring long-term supply relationships with global customers.
+Expanding API portfolio to enhance the scale and scope of API
+operations.
+Focus areas
+Increasing adoption of generics worldwide and rising cancer
+prevalence are some of the factors that propel the growth of the
+pharmaceutical ingredients market.
+Future growth drivers
+DMF/CEP filings
+396
+Global consumer healthcare business
+API manufacturing units
+Revenues for FY18
+*13,993 Mn
+As on 31 March, 2018
+DMF/CEP approvals
+291
+FY13-18 revenue
+CAGR
+13%
+14
+422
+20
+20+
+Focus areas
+• Globally, emerging markets like Russia, Romania, Nigeria, South
+Africa and Myanmar are projected to see sustained growth,
+driven by enhanced healthcare awareness.
+Indian consumer healthcare market will be driven by emerging
+middle-class and rising healthcare consumption.
+Future growth drivers
+MANAGEMENT DISCUSSION AND ANALYSIS
+ANNUAL REPORT 2017-18
+20
+Key brands
+As per Euromonitor 2017 report, Sun Pharma's consumer healthcare
+business in India recorded over 10% growth during the year and has
+grown at 12.6% CAGR over the preceding six years. Sun Pharma
+commands a 2.8% market share in India's consumer healthcare
+market.
+Sun Pharma is among the top 10 consumer healthcare companies
+in India, Romania, Nigeria and Myanmar. It is also ranked No. 1
+in the Romania OTC market. The Company's major markets are
+India, Russia, Romania, Nigeria, South Africa and Myanmar. It also
+has significant presence in Ukraine, Poland, Belarus, Kazakhstan,
+Thailand, Morocco and UAE, where it is scaling up at a steady pace.
+The Company has presence across OTC sub-categories like Vitamins
+and Minerals, Cold and Flu, Analgesics, Digestive and Dermatology.
+Market reach - outlets in India
+390,000+
+Sales and distribution representatives
+in India
+350+
+As on 31st March, 2018
+Country presence
+Progress in FY18
+Revenue contribution
+Cumulative ANDAS
+Approved
+DMF/CEP cumulative
+applications filed
+(2 units)
+--Malanpur
+-Ahmednagar
+Sikkim Plant
+--Karkhadi
+Guwahati;
+Dewas
+SIGNIFICANT AND MATERIAL ORDERS PASSED BY
+THE REGULATORS OR COURTS OR TRIBUNALS
+There are no significant and material orders passed by the regulators
+or courts or tribunals which impact the going concern status and
+Company's operations in future.
+---Jammu
+--- Bangladesh Plant
+Kuala Lumpur (Malaysia)
+Penza (Russia)
+Cluj (Romania)
+Tiszavasvari (Hungary)
+Panoli-
+Ankleshwar.
+Silvassa.
+Halol-
+Dahej-
+Mohali --
+Baska.
+Toansa-
+--Dadra
+---Goa
+--Maduranthakam
+.Port Fairy,
+Australia
+Key API Plants
+One each at Israel, US and Hungary
+⚫ Australia: 2
+• India: 9
+14 API manufacturing sites
+.
+• Injectables/Sterile: Vials, Ampoules, Pre-filled Syringes, Gels,
+Lyophilized Units, Dry powder, Eye drops, MDI and Aerosols
+Topicals: Creams and Ointments
++
+• Orals: Tablets/Capsules, Semisolids, Liquids and Suppository
+One each at Canada, South Africa, Malaysia, Russia, Hungary,
+Israel, Bangladesh, Romania, Egypt and Nigeria
+•
+• US: 4
+• India: 14
+28 finished dosage manufacturing sites
+Australia
+Latrobe,
+Delivery formats
+Baddi
+Be-Tabs (South Africa)
+Lagos (Nigeria).
+Sun Pharma owns 42 manufacturing units, spanning six continents.
+The production units are located in India the US, Russia, Canada,
+Hungary, Israel, Bangladesh, Romania, Nigeria, South Africa, Malaysia
+and Australia.
+Global manufacturing footprint
+DMFs approved in
+FY18
+DMFs filed in FY18
+19
+19
+ANDAS filed in FY18
+The Company ensures that these units are world-class with latest
+equipment and technologies to provide best-in-class products to
+patients worldwide. It has vertically integrated operations that equip
+the Company to maintain a high-quality and low-cost value chain for
+quick market entry across geographies.
+Total patents granted
+21
+Total patent
+applications Submitted
+1,106 1,065 32
+DMF/CEP cumulative
+applications approved
+291
+Cumulative NDA/BLA
+filed
+42
+ANDAS approved in
+FY18
+396
+The Company focuses on producing generics, branded generics,
+specialty products, over-the-counter (OTC) products, anti-retrovirals
+(ARVs) and Active Pharmaceutical Ingredients (APIs). It has capabilities
+to manufacture the full range of dosage forms, including tablets,
+capsules, injectables, ointments, creams and liquids. Moreover, its
+operations are involved in the production of specialty APIs, including
+controlled substances, steroids, peptides and anti-cancers. Sun Pharma
+is among the few enterprises that has comprehensively integrated
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+"
+Giza, (Egypt).
+Haifa (Israel)
+Cranbury
+LTA
+API and Formulation Plant
+▲ API Plant
+◆ Formulation Plant
+21
+Tennessee ---
+Ontario (Canada)
+New Jersey (US)
+Billerica, MA -
+Wilmington M.A.
+Global manufacturing footprint
+The Company complies with globally relevant regulatory policies
+and procedures. Its manufacturing facilities have been certified by
+regulatory authorities of the US (USFDA), Europe (EMA), the UK
+manufacturing operations to produce oncology, hormones, peptides,
+controlled substances and steroidal drugs.
+PHARMA
+(MHRA), Australia (TGA), South Africa (MCC) and Germany (BfArM),
+ANVISA (Brazil), WHO (Geneva), KFDA (Korea) and PMDA (Japan).
+The Company emphasises on round-the-clock compliance to cGMP
+standards which are imperative for a global pharmaceutical business.
+6%
+Active Pharmaceutical Ingredients
+(API) business
+• Improving profitability for overall portfolio.
+1
+Chest Physicians
+2
+Chest Physicians
+1
+Emerging
+Markets Sales
+Force
+Sun Pharma has a 2,300-member sales
+force, which capitalises on opportunities
+available in these markets.
+Outlook & future growth drivers
+.
+•
+India's pharmaceutical market offers good long-term potential,
+driven by increasing per capita income, rising healthcare
+awareness, higher incidence of chronic ailments and gradually
+increasing insurance coverage.
+Government-mandated price controls and other regulatory
+changes coupled with competitive intensity will continue to be
+the key industry challenges.
+Future focus
+• Enhancing the productivity of domestic business and
+strengthening leadership in a hyper-competitive landscape.
+• Innovating consistently to ensure high brand equity with doctors.
+Ophthalmologists
+2
+Ophthalmologists
+1
+Consulting Physicians
+1
+Consulting Physicians
+1
+Sun Pharma ranks among the bellwether Indian companies in
+emerging markets with an extensive portfolio of branded products. It
+has presence across 100+ countries spanning emerging and advanced
+markets. The Company is focusing on key markets of Brazil, Mexico,
+Russia, Romania, South Africa and complementary and affiliated
+markets. The large front-end infrastructure, a part of the Ranbaxy
+acquisition, is being gradually leveraged to expand presence in
+individual markets. Sun Pharma also has local manufacturing assets in
+some of these countries to enable a more meaningful participation in
+the respective markets.
+Dermatologists
+1
+• Widening the product basket through in-house drug development
+and in-licensing.
+Dermatologists
+Urologists
+1
+Urologists
+1
+Oncologists
+1
+Oncologists
+1
+Progress in FY18
+Revenue from emerging markets grew by 7% to 48,392 Million in
+FY18.
+The growth is broad-based among emerging markets.
+Revenues for FY18
+Sun Pharma's presence in the Rest of the World (ROW) spans across
+Western Europe, Japan, Canada, Israel, Australia, New Zealand and
+other markets. Its product portfolio comprises injectables, hospital
+products as well as products for the retail market.
+Progress in FY18
+. Revenues for RoW markets increased by 15% to 29,740 Million
+in FY18.
+provides cost competitiveness and supply reliability through
+backward integration. A significant portion of API production
+acts as inputs for the Company's formulations business. Besides
+captive consumption, Sun Pharma also supplies APIs to external
+customers comprising large generics and innovator companies.
+ΑΡΙ
+portfolio
+Progress in FY18
+*29,740 Mn
+•
+Sun Pharma manufactures over 300 APIs
+across 14 locations, adding approximately
+20 APIs to its portfolio, annually.
+Revenue from APIs and other sources declined by 12% to
+*13,993 Million in FY18.
+•
+Growth was primarily driven by the full-year inclusion of sales of
+acquired brands in Japan.
+.
+Future growth drivers
+•
+•
+1
+As on 31 March, 2018
+FY14-18 revenue
+Future growth drivers
+•
+Given the favourable macroeconomic parameters, emerging
+markets offer encouraging long-term potential.
+• This will be counterbalanced by efforts from various governments
+to make pharmaceutical products more affordable to their
+population.
+Future focus
+•
+Focus on developing and commercialising more products across
+therapeutic segments to exploit this growth opportunity.
+CAGR
+• Explore opportunities to enhance presence in key markets.
+19
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+Rest of the World (ROW) - Western Europe, Sun Pharma's API capability is of strategic importance as it
+Canada, Japan, ANZ and other markets
+11%
+Revenue contribution
+36%
+• Improve business profitability in emerging markets by launching
+complex products and reducing presence in low profitable non-
+core product segments.
+Diabetologists
+1
+Diabetologists
+(As of March 2018)
+MANAGEMENT DISCUSSION AND ANALYSIS
+Cardiology
+Neuro-Psychiatry
+Gastroenterology
+Anti-Infectives
+Diabetology
+Pain/Analgesics
+10
+Dermatology
+Vitamins/Minerals/
+Nutrients
+Respiratory
+Opthalmology
+Others
+(%)
+Emerging markets
+18%
+Gynaecology
+Revenue contribution
+10
+9
+Ramping up presence in Japan post transfer of Novartis brands to
+Sun Pharma.
+.
+Outlook and future focus
+ANNUAL REPORT 2017-18
+Chart 11 Therapeutic revenue break-up⁹
+4
+2
+12
+6
+4
+Market
+6
+Share
+8.5%
+18
+7
+18
+The Panoli and Ahmednagar (both India) has USFDA and European
+approvals. They have standalone units for peptides,
+anti-cancer, steroids and sex hormones, among others
+47%
+revenue CAGR
+Cardiologists
+1
+Cardiologists
+1
+Orthopaedic
+1
+Orthopaedic
+1
+1
+1
+Gastroenterologists
+1
+Nephrologists
+1
+Nephrologists
+1
+Gastroenterologists
+FY14-18
+Neurologists
+Neurologists
+*48,392 Mn
+Revenues for FY18
+100+ countries
+Presence across emerging markets
+As on 31March, 2018
+Table 5
+Leadership in prescription rankings10
+1
+February
+Specialists
+2017
+February
+2018
+Psychiatrists
+1
+Psychiatrists
+1
+Specialists
+•⚫ The plants in Australia, Hungary and the US (Tennessee)
+manufacture controlled substances
+-- Paonta
+ANNUAL REPORT 2017-18
+2.5
+DIVIDEND
+*Refer Note 56(13) of Standalone Financial Statements (Note 18 of Abridged Standalone Financial Statements)
+124,860.0
+112,367.7
+Closing balance in Retained Earnings
+317,641.5
+-General reserve
+7.5
+1,041.7
+50.6
+10,110.3
+2,168.1
+(833.4)
+7.5
+company
+-Buy-back of equity shares by overseas subsidiary
+-Legal reserve
+-Capital reserve
+306,456.9
+The dividend payout is in accordance with the Company's Dividend
+Distribution Policy. The Dividend Distribution Policy of the Company
+is provided as 'Annexure - A' to this Report. The policy is also
+Further the Board of Directors at its meeting held on May 25,
+2018 has also approved a Composite Scheme of Arrangement
+among the Company and Sun Pharma (Netherlands) B.V.
+and Sun Pharmaceutical Holdings USA Inc, wholly owned
+subsidiaries of the Company and their respective members
+and creditors ("Scheme"), for demerger of Specified Investment
+Undertaking -1 (as defined in the Scheme) of the Company
+into Sun Pharma (Netherlands) B.V. and Specified Investment
+Undertaking -2 (as defined in the Scheme) of the Company into
+Sun Pharmaceutical Holdings USA Inc. This demerger shall
+enable the Company to address the risks and policies, ability
+to strategize the remaining business for long term growth,
+strengthening of the investment portfolio, consolidation
+and creation of shareholder value. The Company shall be
+making the necessary application to the Hon'ble National
+Company Law Tribunal of Gujarat, at Ahmedabad and such
+other authorities as may be required for obtaining necessary
+approvals for the aforesaid Scheme.
+During the year, the Board of Directors at its meeting held
+on November 14, 2017 has approved another Scheme of
+Arrangement among Sun Pharma Global FZE ("Transferor
+Company"), a wholly owned subsidiary of the Company and
+the Company and their respective members and creditors
+("Scheme") for demerger of the Specified Undertaking (as
+defined in the Scheme) of Transferor Company into the
+Company. The Hon'ble National Company Law Tribunal of
+Gujarat, at Ahmedabad ("NCLT") had dispensed with convening
+of meeting of secured creditors of the Company and ordered
+to convene the meeting of equity shareholders and unsecured
+creditors of the Company on June 01, 2018 to approve the
+Scheme with appointed date as April 01, 2017 or such other
+date as may be agreed between the Transferor Company and the
+Company and approved by the NCLT. Pursuant to said Scheme,
+no consideration shall be paid and no shares of the Company
+shall be issued and allotted to the Transferor Company. The
+Scheme will result in strengthening of the business, synergestic
+benefits, economies of scale, faster decision making, integration
+of supply chain, reduction in operating costs, strengthening
+the focus, increased ability to face the competitive regulatory
+environment, increasing profitability, higher market share etc.
+During the year, the Hon'ble National Company Law Tribunal of
+Gujarat at Ahmedabad had vide its order dated August 11, 2017
+sanctioned the Scheme of Arrangement among Sun Pharma
+Medisales Private Limited, Ranbaxy Drugs Limited, Gufic Pharma
+Limited, Vidyut Investments Limited (collectively "Transferor
+Companies") wholly owned subsidiaries of the Company and the
+Company ("Transferee Company") and their respective members
+and creditors ("Scheme") whereby the Transferor Companies
+stand amalgamated with the Company w.e.f. September
+08, 2017 with appointed date being April 01, 2017. Pursuant
+to the Scheme no consideration was paid.
+3.
+2.
+1.
+Your Directors have recommended a dividend of 2.00 (Rupees Two
+only) per equity share of 1/- each [previous year 3.50/- per equity
+share of 1/- each] for the year ended March 31, 2018, subject to
+the approval of the equity shareholders at the ensuing 26th Annual
+General Meeting of the Company.
+SCHEME OF ARRANGEMENTS
+BOARD'S REPORT
+ANNUAL REPORT 2017-18
+24
+During the year under review, the Company has allotted 18893
+equity shares of 1/- each under Sun Employee Stock Option
+Scheme - 2015 and 13106 equity shares of 1/- each under Sun
+Employee Stock Option Plan - 2015 thereby the paid up share
+capital of the Company increased to 2,399,323,180/- (Rupees Two
+Billion Three Hundred Ninety-Nine Million Three Hundred Twenty-
+Three Thousand One Hundred Eighty only) as on March 31, 2018.
+CHANGES IN CAPITAL STRUCTURE
+available on the website of the Company and can be accessed
+through the web link: http://www.sunpharma.com/policies.
+Further, on May 24, 2018, the Company has allotted 1314
+equity shares of 1/- each under Sun Employee Stock Option
+Scheme 2015.
+-Debenture redemption Reserve
+22
+Transfer to various Reserves:
+306,456.9
+126,353.4
+124,860.0
+Opening balance in Retained Earnings
+7,284.3
+4,945.7
+2,51,630.4
+-Non-Controlling Interest
+26,370.3
+(862.9)
+(4,451.0)
+-Owners of the Company
+63,590.4
+31,316.0
+56,306.1
+Additions:
+Transfer on Merger*
+1,824.8
+490.0
+2,406.8
+7,977.4
+1,624.0
+74.7
+3.4
+Dividend Distribution Tax
+2,406.8
+7,977.4
+Dividend on Equity Shares
+Less: Appropriations
+68,933.4
+22,123.2
+(829.2)
+(4,511.5)
+Amount available for appropriation
+EXTRACT OF ANNUAL RETURN
+(862.9)
+The extract of Annual Return as required under sub-section (3) of
+Section 92 of the Companies Act, 2013 ('the Act') in form MGT-9 is
+provided as 'Annexure - B' to this Report.
+COMPANIES
+The details pertaining to composition of Audit Committee are
+included in the Corporate Governance Report, which forms part of
+this Report.
+AUDIT COMMITTEE COMPOSITION
+As required under Section 134(3)(h) of the Act, details of
+transactions entered with Related Parties under the Act exceeding
+ten percent of the annual consolidated turnover as per the last
+audited financial statements are given in Form AOC-2 provided as
+'Annexure - E' to this Report.
+The policy on Related Party Transactions as approved by the Board
+is available on the website of the Company and can be accessed
+through the web link http://www.sunpharma.com/policies. All
+contracts/arrangements/transactions entered by the Company
+during the year under review with the related parties were in the
+ordinary course of business and on an arm's length basis.
+RELATED PARTY TRANSACTIONS
+The particulars of loans, guarantees and investments have been
+disclosed in the Financial Statements.
+RISK MANAGEMENT
+LOANS, GUARANTEES & INVESTMENTS
+SECRETARIAL STANDARDS
+The Company has appointed Messrs Kailash Sankhlecha &
+Associates, Cost Accountants, Vadodara as Cost Auditor of the
+Company for conducting Cost Audit in respect of Bulk Drugs &
+Formulations of your Company for the financial year 2018-19.
+Cost Auditor
+The Company had appointed Messrs C. J. Goswami & Associates,
+Practicing Company Secretaries, Mumbai to undertake the
+Secretarial Audit of the Company for the financial year ended March
+31, 2018. The Secretarial Audit Report in the Form No. MR - 3 for
+the year is provided as 'Annexure - D' to this Report. The Secretarial
+Audit Report for the year does not contain any qualification,
+reservation or adverse remark.
+Secretarial Auditor
+The Auditor's Report for the financial year ended March 31, 2018, has
+been issued with an unmodified opinion, by the Statutory Auditors.
+The Company has complied with the applicable Secretarial Standards
+as amended from time to time.
+for a period of 5 (five) years at the 25th Annual General Meeting of
+the Company to hold office till 30th Annual General Meeting of the
+Company.
+The Company has developed & implemented an integrated
+Enterprise Risk Management Framework through which it identifies
+monitors, mitigates & reports key risks that impacts its ability
+to meet the strategic objectives. The Board of Directors have
+constituted a Risk Management Committee which is entrusted with
+the responsibility of overseeing various strategic, operational and
+financial risks that the organisation faces, along with the adequacy of
+mitigation plans to address such risks. There is an overarching Risk
+Management Policy in place that was reviewed and approved by the
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+Employee Stock Option Scheme - 2015, and the one through Trust
+Route as Sun Pharma Employee Stock Option Plan - 2015. Both the
+schemes were adopted by the Company with certain amendments
+consequent upon merger of erstwhile Ranbaxy into the Company.
+Both the Schemes are in compliance with Securities and Exchange
+Board of India (Share Based Employee Benefits) Regulations, 2014.
+The Scheme through Trust Route i.e. Sun Pharma Employee Stock
+Option Plan - 2015 has been completed in August 2017.
+CONSERVATION OF ENERGY, TECHNOLOGY
+ABSORPTION AND FOREIGN EXCHANGE
+EARNINGS AND OUTGO
+Report on Corporate Governance and Certificate of the Auditors of
+the Company regarding compliance of the conditions of Corporate
+Governance as stipulated in Part C of Schedule V of the Listing
+Regulations, are provided in a separate section and forms part of this
+Report.
+CORPORATE GOVERNANCE REPORT
+The Management Discussion and Analysis as prescribed under Part B
+of Schedule V read with Regulation 34(3) of the Listing Regulations is
+provided in a separate section and forms part of this Report.
+MANAGEMENT DISCUSSION AND ANALYSIS
+27
+The Company has not accepted any deposit from the Public during
+the year under review, under the provisions of the Act and the rules
+framed thereunder.
+In compliance with the requirements of Section 135 of the Act
+read with the Companies (Corporate Social Responsibility) Rules,
+2014, the Board of Directors have constituted a Corporate Social
+Responsibility (CSR) Committee of the Company. The details of
+membership of the Committee and the meetings held are detailed
+in the Corporate Governance Report, forming part of this Report.
+During the year under review, the Board of Directors have approved
+certain amendments in CSR policy pertaining to the projects and
+CSR activities to be undertaken by the Company. The contents
+of the CSR Policy of the Company as approved by the Board on
+the recommendation of the CSR Committee are available on the
+website of the Company and can be accessed through the web link:
+http://www.sunpharma.com/policies. The average net profit of the
+Company for last three financial years is negative, therefore the
+Company was not required to spend on CSR activities during the
+year, however, the Company has voluntarily spent on CSR activities.
+The annual report on CSR activities containing details of voluntary
+expenditure incurred by the Company and brief details on the CSR
+activities are provided in 'Annexure - F' to this Report.
+CORPORATE SOCIAL RESPONSIBILITY
+The Company has in place well defined and adequate internal
+financial control framework. During the year under review, such
+controls were tested and no material weaknesses were observed
+both in their design or operations.
+INTERNAL FINANCIAL CONTROLS
+Board. The Corporate Governance Report, which forms part of this
+Report, contains the details of Risk Management Committee of the
+Company.
+PHARMA
+PUBLIC DEPOSITS
+SRB C & Co LLP, Chartered Accountants, (Firm's Regn. No. 324982E/
+E300003), were appointed as the Statutory Auditors of the Company
+Statutory Auditors
+AUDITORS
+As informed in the previous year's Board's Report, Mr. C.S.
+Muralidharan has been appointed as Chief Financial Officer of the
+Company w.e.f June 19, 2017 and Mr. Uday Baldota had resigned
+as Chief Financial Officer w.e.f. June 19, 2017 to assume office as
+the Director and Chief Executive Officer of Taro Pharmaceutical
+Industries Limited, a subsidiary of the Company.
+Appropriate resolutions for the appointment / re-appointment of
+the Directors are being placed for your approval at the ensuing
+26th Annual General Meeting. Your Directors recommend the
+appointment/reappointment of the aforesaid Directors by the
+members at the ensuing 26th Annual General Meeting of the
+Company.
+Mr. Hasmukh Shah had resigned as an Independent Director of the
+Company effective from November 15, 2017. The Board of Directors
+places on record their appreciation for contributions made by Mr.
+Hasmukh Shah during his tenure as an Independent Director of the
+Company.
+Pursuant to Regulation 17(1A) of SEBI (Listing Obligations and
+Disclosure Requirements) Regulations, 2015 ("Listing Regulations") to
+be effective from April 01, 2019, the consent of the members by way
+of Special Resolution is required for continuation of a Non-Executive
+Director of a company beyond the age of seventy five years. Mr. Israel
+Makov, Non-Executive Director and the Chairman of the Company,
+having attained an age of 79 years, the Board has recommended his
+continuation as a Director of the Company for approval of the members
+at the ensuing 26th Annual General Meeting of the Company.
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+DECLARATION BY INDEPENDENT DIRECTORS
+The Company has received declarations from all the Independent
+Directors of the Company confirming that they meet with the criteria
+of independence as prescribed under sub-section (6) of Section 149
+of the Act and under Listing Regulations.
+25
+Further the present term of appointment of Mr. Kalyanasundaram
+Subramanian as Whole-time Director will expire on February 13, 2019.
+He has made significant contribution to the overall growth of the
+Company's business. Your Directors recommend the re-appointment
+of Mr. Kalyanasundaram Subramanian for a further period of 2 (Two)
+years from February 14, 2019 to February 13, 2021, without any
+remuneration, for approval of the members at the ensuing 26th Annual
+General Meeting of the Company.
+The present term of appointment of Mr. Sudhir V. Valia and Mr. Sailesh T.
+Desai as Whole-time Directors will expire on March 31, 2019. They have
+made significant contributions to the overall growth of the Company's
+business. Your Directors recommend the re-appointment of Mr. Sudhir
+V. Valia and Mr. Sailesh T. Desai for a further period of 5 (Five) years from
+April 01, 2019 to March 31, 2024, and remuneration for a period of 3
+(Three) years from April 01, 2019 to March 31, 2022 due to inadequacy
+of profits, for approval of the members at the ensuing 26th Annual
+General Meeting of the Company.
+DIRECTORS AND KEY MANAGERIAL PERSONNEL
+Mr. Dilip S. Shanghvi, Managing Director and Mr. Sudhir V. Valia, Whole-
+time Director of the Company retire by rotation and being eligible offer
+themselves for reappointment at the ensuing 26th Annual General
+Meeting of the Company.
+Details pertaining to companies that became subsidiaries/joint
+ventures/associates and those that ceased to be the subsidiaries/
+joint ventures/associates of the Company during the year are
+provided in Note no. 39 of the notes to the Consolidated Financial
+Statements, forming part of the Annual Report.
+The highlights of performance of subsidiaries, joint ventures
+and associate companies and their contribution to the overall
+performance of the Company during the financial year is given under
+'Annexure A of the Consolidated Financial Statements' forming part
+of the Annual Report.
+The statement containing the salient features of the Financial
+Statements of the Company's subsidiaries/joint ventures/ associate
+companies is given in Form AOC - 1, provided in notes to the
+Consolidated Financial Statements, forming part of the Annual
+Report.
+Mr. Vivek Chaand Sehgal and Mr. Gautam Doshi were appointed as
+Additional Independent Directors of the Company w.e.f. November 14,
+2017 and May 25, 2018 respectively in accordance with the provisions
+of Section 149 and 161(1) of the Act and they both hold office upto the
+date of ensuing 26th Annual General Meeting. The Board recommends
+appointment of Mr. Vivek Chaand Sehgal and Mr. Gautam Doshi as
+Independent Directors of the Company for a term of 5(Five) years
+effective from November 14, 2017 and May 25, 2018 respectively for
+approval of the members at the ensuing 26th Annual General Meeting
+of the Company.
+REMUNERATION POLICY FOR DIRECTORS,
+KEY MANAGERIAL PERSONNEL AND OTHER
+EMPLOYEES AND CRITERIA FOR APPOINTMENT
+OF DIRECTORS
+For the purpose of selection of any Director, the Nomination and
+Remuneration Committee identifies persons of integrity who possess
+relevant expertise, experience and leadership qualities required
+for the position. The Committee also ensures that the incumbent
+fulfills such criteria with regard to qualifications, positive attributes,
+independence, age and other criteria as laid down under the Act,
+Listing Regulations or other applicable laws. The Board has, on the
+recommendation of the Nomination and Remuneration Committee
+framed a policy on remuneration of Directors, Key Managerial
+Personnel and other Employees. The Remuneration Policy of the
+Company is enclosed as 'Annexure B to Corporate Governance
+Report', which forms part of this Report
+FAMILIARISATION PROGRAMME FOR THE
+INDEPENDENT DIRECTORS
+DISCLOSURE UNDER THE SEXUAL HARASSMENT
+OF WOMEN AT WORKPLACE (PREVENTION,
+PROHIBITION AND REDRESSAL) ACT, 2013
+Your Company strongly believes in providing a safe and harassment
+free workplace for each and every individual working for the
+Company through various interventions and practices. It is the
+continuous endeavor of the Management of the Company to
+create and provide an environment to all its employees that is free
+from discrimination and harassment including sexual harassment.
+The Company has adopted a policy on prevention, prohibition
+and redressal of sexual harassment at workplace in line with the
+provisions of the Sexual Harassment of Women at Workplace
+(Prevention, Prohibition and Redressal) Act, 2013 and the Rules
+made thereunder. The Company has arranged various interactive
+awareness workshops in this regard for the employees at the
+manufacturing sites, R & D set ups & corporate office during the
+year under review. The Company has submitted the Annual Returns
+to the local authorities under the above mentioned Act. During
+the financial year ended March 31, 2018, 1 complaint pertaining
+to sexual harassment was received and the same was resolved by
+the Company. There are no complaints pending as at the end of the
+financial year.
+Information as per Section 197 (12) of the Act read with Rule 5(1)
+of the Companies (Appointment and Remuneration of Managerial
+Personnel) Rules, 2014 is provided in 'Annexure - C' to this
+Report. Further, the information pertaining to Rule 5(2) & 5(3) of
+the Companies (Appointment and Remuneration of Managerial
+Personnel) Rules, 2014, pertaining to the names and other
+particulars of employees is available for inspection at the Registered
+office of the Company during business hours and pursuant to
+the second proviso to Section 136(1) of the Act, the Report and
+the accounts are being sent to the members excluding this. Any
+shareholder interested in obtaining a copy of the same may write to
+the Company Secretary/Compliance Officer at Corporate office or
+Registered office address of the Company.
+We continue to believe that our organizational plans are fuelled
+by our employees and in an ever-changing business environment,
+it is critical to have credible and transparent people management
+practices and policies. The Human Resources agenda focuses on
+employee welfare, productivity and performance as a priority.
+We believe nurturing a high performance culture is imperative.
+Your company is proud to have talent which is varied and deep in
+its experiences and expertise across manufacturing, R & D, sales
+and other functions. Globally, the Company (including subsidiary
+and associate companies) has a dedicated human capital of over
+30,000 employees at various locations across our various offices,
+R & D Centers & more than 40+ active manufacturing locations
+and dedicated sales professionals across various geographies. Your
+Directors would also like to take this opportunity to express their
+appreciation for the hard work and commitment of the employees
+of the Company and look forward to their continued contribution.
+HUMAN RESOURCES
+BOARD'S REPORT
+ANNUAL REPORT 2017-18
+26
+The performance of the Board was evaluated by the Board after
+seeking inputs from all the Directors on the basis of various
+criteria such as structure and diversity of the Board, competency
+of Directors, experience of Director, strategy and performance
+evaluation, secretarial support, evaluation of risk, evaluation of
+performance of the management and feedback, independence
+of the management from the Board etc. The performance of the
+Committees was evaluated by the Board after seeking inputs from
+the Committee members on the basis of criteria such as mandate
+and composition, effectiveness of the committee, structure of the
+committee and meetings, independence of the committee from the
+Board and contribution to decisions of the Board. The Nomination
+and Remuneration Committee reviewed the performance of the
+individual Directors on the basis of the criteria such as qualification,
+experience, knowledge and competency, fulfillment of functions,
+availability and attendance, initiative, integrity, contribution and
+commitment etc, and the Independent Directors were additionally
+evaluated on the basis of independence, independent views and
+judgement etc. Further the evaluation of Chairman of the Board, in
+addition to the above criteria for individual Directors, also included
+evaluation based on effectiveness of leadership and ability to steer
+the meetings, impartiality, etc.
+In a separate meeting of Independent Directors, performance of Non
+Independent Directors and performance of the Board as a whole
+was evaluated. Further, they also evaluated the performance of the
+Chairman of the Company, taking into account the views of the
+Executive Directors and Non-executive Directors.
+The Chairman of the Company interacted with each Director
+individually, for evaluation of performance of the individual
+Directors. The evaluation for the performance of the Board
+as a whole and of the Committees were conducted by way of
+questionnaires.
+EVALUATION OF PERFORMANCE OF THE BOARD,
+ITS COMMITTEES AND INDIVIDUAL DIRECTORS
+During the year, the evaluation of the annual performance of
+individual Directors including the Chairman of the Company and
+Independent Directors, Board and Committees of the Board was
+carried out under the provisions of the Act, relevant Rules, and the
+Corporate Governance requirements as prescribed under Regulation
+17 of Listing Regulations and based on the circular issued by SEBI
+dated January 5, 2017 with respect to Guidance Note on Board
+Evaluation. The Nomination and Remuneration Committee had
+approved the criteria for the performance evaluation of the Board,
+its Committees and individual Directors as per the SEBI Guidance
+Note on Board Evaluation.
+The Board of Directors of the Company met 5 (Five) times during the
+year under review on May 26, 2017; August 11, 2017; September
+26, 2017; November 14, 2017; and February 14, 2018. The
+particulars of attendance of the Directors at the said meetings are
+detailed in the Corporate Governance Report, which forms a part of
+this Report. The intervening gap between the meetings was within
+the period prescribed under the Act and Listing Regulations.
+NUMBER OF MEETINGS OF THE BOARD
+are available on the website of the Company www.sunpharma.com
+and may be accessed through the web link: http://www.sunpharma.
+com/policies.
+In compliance with the requirements of Regulation 25(7) of the
+Listing Regulations, the Company has put in place a Familiarisation
+Programme for the Independent Directors to familiarise them with
+the Company, their roles, rights, responsibilities in the Company,
+nature of the industry in which the Company operates, business
+model etc. The details of the Familiarisation Programme conducted
+SUBSIDIARIES/JOINT VENTURES/ASSOCIATE
+(4,451.0)
+-Capital redemption Reserve
+(14,871.9)
+India Brand Equity Foundation
+8.
+IndiaSpend
+Total Comprehensive Income / (Loss) for the year attributable to:
+AIOCD AWACS, March 2018
+10.
+SMSRC Prescription Rankings
+23
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+Board's Report
+Your Directors take pleasure in presenting the Twenty-Sixth Annual Report and Company's Audited Financial Statements for the financial
+year ended March 31, 2018.
+FINANCIAL RESULTS
+(in Million)
+Standalone
+Consolidated
+Particulars
+Revenue from operations
+Profit/ (Loss) before tax but after exceptional item
+Year ended
+March 31, 2018
+79,476.0
+(5199.8)
+Year ended
+March 31, 2017*
+77,932.0
+(168.0)
+Year ended
+March 31, 2018
+Year ended
+March 31, 2017
+264,894.6
+34,789.8
+315,784.4
+90,478.7
+Tax Expense:
+7.
+-Current Tax
+During FY18, many of the Company's facilities underwent successful
+audits by various global regulatory authorities, including the
+USFDA. The Halol facility underwent a re-inspection by the USFDA
+in February 2018. On completion of the re-inspection, the USFDA
+issued three observations for the facility. Subsequently in June 2018,
+the USFDA issued the establishment inspection report (EIR) for Halol,
+thus clearing it.
+6.
+MANAGEMENT DISCUSSION AND ANALYSIS
+Managing talent
+Sun Pharma has a global and diverse talent pool comprising over
+50 nationalities. The Company considers its human assets to be its
+pivotal driving force and harbours a congenial work culture that
+encourages people (irrespective of race, gender and nationality)
+to contribute their best and accomplish the organisation's
+common objectives.
+The Company offers several skill development opportunities to its
+32,000+ workforce which includes various management programmes
+for employees to enhance their skills. Moreover, it has a wide range
+of knowledge sharing platforms that empower employees to grow
+professionally and be future-ready.
+The Company promotes equal opportunities for all and values a
+healthy work-life balance. It has several employee engagement
+initiatives that minimise attrition.
+Quality adherence
+Quality is considered critical at all Sun Pharma's R&D centres,
+manufacturing units and testing and distribution facilities. It is
+committed to implementing a robust global quality management
+system. This dedication stems from Sun Pharma's determination to
+sustain a culture of operational excellence and meeting and exceeding
+stakeholders' - regulators, patients and customers - expectations.
+The Company firmly believes in the motto of 'putting patients first'.
+Sun Pharma's global Quality Management Team ensures every
+product it manufactures and distributes complies with internationally
+accepted good practices and standards of quality, purity, efficacy and
+safety. The Company has distinct procedures and systems in every
+facility to maintain global quality standards, and to ensure compliance
+with the requirements of the Current Good Manufacturing Practices
+(cGMP), WHO, PICS and EU GMP. Sun Pharma ensures that its
+operating procedures meet the exacting standards of all global
+regulators like the USFDA, EMA, WHO and TGA, among others.
+Sun Pharma has well-trained personnel for quality control at each
+site, who along with a regulatory affairs department, ensure strict
+adherence to quality systems and procedures. The teams are guided
+by a Corporate Quality Unit (CQU). CQU supervises the translation of
+the latest GMP updates to guidelines, standard operating procedures
+(SOPs) and protocols. The teams oversee the implementation of
+these guidelines to deliver quality products every time. Additionally,
+Sun Pharma's manufacturing plants are audited by an autonomous
+Corporate Compliance Department to establish 24x7 compliance and
+conformance.
+Internal control
+Sun Pharma believes that internal control is a prerequisite of the
+principle of governance and that freedom should be exercised
+within a framework of checks and balances. The Company has a
+well-established internal control framework, which is designed to
+continuously assess the adequacy, effectiveness and efficiency of
+financial and operational controls. The management is committed to
+ensuring an effective internal control environment, commensurate
+with the size and complexity of the business, which provides an
+assurance on compliance with internal policies, applicable laws,
+regulations and protection of resources and assets.
+An independent and empowered Global Internal Audit Function
+at the corporate level carries out risk-focused audits across all
+businesses (both in India and overseas), which actively identifies
+areas, where business process controls are ineffective or may need
+enhancement. These reviews include financial, operational and
+compliance controls and risk mitigation plans. The Audit Committee
+of the Board periodically reviews key findings and provides
+strategic guidance. The Company's operating management closely
+monitors the internal control environment and ensures that the
+recommendations are effectively implemented.
+Disclaimer
+Statements in this 'Management Discussion and Analysis' describing
+the Company's objectives, projections, estimates, expectations, plans or
+predictions or industry conditions or events are 'forward-looking statements'
+within the meaning of applicable securities laws and regulations. Actual
+results, performance or achievements could differ materially from those
+expressed or implied. Important factors that could make a difference to the
+Company's operations include global and Indian demand supply conditions,
+finished goods prices, feedstock availability and prices, competitors' pricing
+in the Company's principal markets, changes in Government regulations, tax
+regimes, economic conditions within India and the countries within which the
+Company conducts businesses and other factors, such as litigation and labour
+unrest or other difficulties. The Company assumes no responsibility to publicly
+update, amend, modify or revise any forward-looking statements, based on
+any subsequent development, new information or future events or otherwise
+except as required by applicable law. Unless the context otherwise requires, all
+references in this document to 'we', 'us' or 'our' refers to Sun Pharmaceutical
+Industries Limited and consolidated subsidiaries.
+Bibliography
+1.
+IQVIA Institute, October 2017
+2.
+IQVIA Market Prognosis, September 2017; IQVIA Institute,
+October 2017
+3.
+Evaluate Pharma World Preview 2018
+4.
+United Nations Population Fund
+5.
+Nicholas Hall 2017
+Research and Markets
+20.2
+9.
+in the preparation of the annual accounts for the financial year
+ended March 31, 2018, the applicable accounting standards
+have been followed and there are no material departures from
+the same;
+Profit/ (Loss) after Tax but before Share in profit / (loss) of
+associates/joint ventures
+78,363.0
+26,337.9
+(228.4)
+(4,945.9)
+Profit/ (Loss) after tax
+26,337.9
+2,544.5
+(720.6)
+2.7
+(274.1)
+-Deferred tax charge / (Credit) - exceptional
+57.7
+6,628.0
+8,069.3
+4,046.4
+-Deferred Tax Charge / (Credit)
+78,363.0
+99.3
+Profit for the year before non-controlling interests
+Non-controlling interests
+26,083.5
+78,462.3
+4,468.0
+8,818.6
+(254.4)
+Share of Profit/(loss) of associates / joint ventures (Net)
+21,615.5
+69,643.7
+Total other Comprehensive Income
+494.9
+(634.5)
+5,232.5
+Profit for the year attributable to owners of the Company
+Physical
+0.20
+4877089
+Total
+Shares
+year
+i)
+Non Resident Indians(Repat)
+4019379 375280
+Demat
+4394659
+2281621
+0
+2281621
+0.10
+4545204
+2565549
+331885
+ii) Non Resident Indians (Non-
+0.18
+Repat)
+0
+0
+3784017
+Other Directors
+v)
+0.04
+0.11
+2695586
+0
+2695586
+0.07
+1770770
+0
+1770770
+Clearing Member
+0.02
+iv)
+0.03
+671865
+0
+671865
+0.03
+813562
+0
+813562
+Foreign Companies
+iii)
+during the
+0.01
+0.11
+2565549
+-0.01
+% of Total
+Individuals
+Total
+59440
+91079824
+59440
+3.80
+0.00
+102919063 153917 103072980
+46000
+4.30
+0.50
+0
+46000
+0.00
+0.00
+Qualified Foreign Investors
+c)
+in excess of 1 lakh
+holding nominal share capital
+-0.11
+1.14
+27306865
+i)
+Individual shareholders
+128188202 11018588 139206790
+5.80
+138287020 9952424
+148239444
+Overseas
+6.18
+holding nominal share capital
+upto 1 lakh
+ii)
+Individual shareholders
+29741926 125000 29866926
+1.24
+27181865 125000
+0.38
+ii)
+184797
+90895027
+0
+0
+0.00
+0.00
+d)
+Others (specify)
+0
+35
+PHARMA
+No. of Shares held at the beginning of the year
+No. of Shares held at the end of the year
+% Change
+Category of Shareholders
+Demat Physical
+b)
+% of Total
+Shares
+0.00
+0
+Indian
+i)
+Bodies Corporate
+a)
+Non-Institutions
+2)
+0
+-0.94
+0.06
+0.06
+1546565
+780919354
+2547821
+0.01
+0
+32.55
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+Government
+0.00
+380
+Central Government/State
+c)
+22412015
+5.18
+124327242
+4218
+124323024
+b) Financial Institutions/ Bank
+2.77
+8.13
+195010271
+192509489 2500782
+5.36
+128559256
+0
+126058474 2500782
+380
+0
+0
+0.00
+0
+0
+0
+Venture Capital Funds
+d)
+3784017
+0.00
+0.00
+0
+-4.25
+0.93
+22415813
+3798
+0
+0.00
+e)
+Mutual Funds
+Institutions
+0
+0
+0.00
+0.00
+0
+0
+0
+0.00
+0
+0
+0
+0.00
+0.00
+0
+0
+0
+a)
+0.00
+0
+1)
+Public Shareholding
+B
+0.00
+54.38
+1304855381
+12000
+1304843381
+54.38
+1304855381
+12000
+1304843381
+0.00
+0.00
+0
+0
+0.09
+Insurance Companies
+0
+16.16
+387782873
+0
+387782873
+18.79
+0 450853540
+450853540
+Foreign Portfolio Investor
+Any other (specify)
+i)
+0.00
+0.00
+0
+0
+0
+-2.63
+0.00
+(Corporate)
+UTI
+0.00
+25422
+2236970
+23918
+1380
+0
+1504
+2235590
+1546565
+778371533
+0.00
+0.08
+0.00
+33.49
+803464694
+2548741
+800915953
+Sub total (B)(1)
+0
+25422
+1996802
+23918
+1880
+0
+0
+Alternate Investment Funds
+1504
+1994922
+Foreign Bank
+37905019
+0
+0
+59797033
+17943
+59779090
+Fils
+f)
+5.43
+7.01
+168094940
+0.00
+0.00
+0
+0
+0
+168094940
+1.58
+37905019
+2.49
+0
+3788557
+3806500
+Qualified Foreign Investors
+h)
+0.00
+0.00
+0
+0
+0
+0.00
+0
+0
+0
+Foreign Venture Capital
+g)
+-2.33
+0.16
+17943
+0.16
+83751259
+0
+At the end of the year
+0
+0
+0
+0
+At the beginning of the year
+10. Rekha Sethi
+0
+0
+0
+0
+At the end of the year
+0
+0
+0
+0
+At the beginning of the year
+8.
+Keki M. Mistry
+At the beginning of the year
+43270
+0.00
+43270
+0
+0.00
+43270
+0.00
+43270
+0.00
+9.
+Ashwin S. Dani
+At the end of the year
+0
+0
+0
+0
+0
+At the end of the year
+At the beginning of the year
+14. Sunil Ajmera
+At the end of the year
+0
+0
+0
+13. CS Muralidharan## As on June 19, 2017
+0.00
+22700
+0.00
+22700
+0.00
+22700
+0.00
+11. Vivek Chaand
+Sehgal**
+As on November 14, 2017
+0
+0
+0
+0
+0
+At the end of the year
+0
+0
+0
+12. Uday Baldota#
+At the beginning of the year
+As on June 19, 2017
+22700
+0
+0
+0
+0
+At the end of the yearⓇ
+0.16
+3740747
+0.16
+3740747
+At the beginning of the yearⓇ
+Sailesh T. Desai
+4.
+0.60
+14345019
+0.60
+14345019
+At the end of the year
+0.60
+14345019
+0.60
+14345019
+Dilip S. Shanghvi
+At the beginning of the year
+230285690
+9.60
+230285690
+9.60
+3740747
+At the end of the year
+9.60
+230285690
+9.60
+3.
+Sudhir V. Valia
+At the beginning of the year
+230285690
+0.16
+3740747
+0.16
+0
+0
+0
+0
+0
+0
+0
+0
+Hasmukh S. Shah* At the beginning of the year
+0
+0
+0
+0
+As on November 15, 2017
+7.
+0
+At the beginning of the year
+At the end of the year
+S. Mohanchand
+5.
+Kalyanasundaram
+At the beginning of the year
+0
+0
+0
+Dadha
+0
+At the end of the year
+0
+0
+0
+0
+6.
+Subramanian
+0
+0
+0
+No.
+Particulars of Remuneration
+Sr.
+A) Remuneration to Managing Director, Whole-time Directors and/or Manager for the year ended March 31,
+2018 (As per Form 16, on actual payment basis)
+VI) REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
+Change in the CC & OD limit under Working Capital Facility forming part of Secured & Unsecured loans, have been shown on net basis.
+Ind AS adjustment in the outstanding as on 31st March, 2018 of External Commercial Paper & Commercial papers are shown as reduction in principal
+amount.
+(4)
+(3)
+Interest accrued but not due on borrowings.
+(2)
+Deposits are Security Deposits Received. The change during the year has been shown on net basis.
+(1)
+Notes:
+69,007.5
+118.3
+68,771.9
+117.3
+68,958.4
+ii)
+Interest due but not paid
+0.0
+0.0
+0.0
+(Amount in )
+0.0
+Interest accrued but not due(2)
+9.1
+40.0
+0.0
+49.1
+Total (i+ii+iii)
+iii)
+Mr. Dilip S.
+Mr. Sudhir V. Valia Mr. Sailesh T. Desai
+Total
+Sweat Equity
+4
+Commission as a % of profit
+5
+Others, please specify
+Total (A)(1)
+3
+30087305
+12283054(1)
+72314024
+Ceiling as per the Act: * 3.04 Crores, computed as per Part-A of Section II of Schedule V of the Act, in view of absence of profits for the FY
+2017-18.
+Mr. Dilip S. Shanghvi, Managing Director and Mr. Sudhir V. Valia, Whole-time Director are entitled to a remuneration
+of 3.93 crores (excluding Perquisites such as reimbursement of electricity charges, motor vehicle charges, etc. which
+shall be taken at actuals) each for the FY 2017-18 as approved by the Board of Directors. However in view of absence
+of profits for the year under review, the Company has paid remuneration to the aforesaid Directors for the FY 2017-
+18 upto the ceiling limits as computed under Schedule V of the Act. Further, the Company has made an application to
+the Central Government for approval of payment of remuneration to Mr. Dilip S. Shanghvi and Mr. Sudhir V. Valia for
+the FY 2017-18 as per their entitlement as aforesaid, the approval of which is awaited.
+(1) Remuneration includes Bonus of 2016-17 paid in 2017-18
+38
+29943665
+118.3
+Stock Option
+Income-tax Act, 1961
+Shanghvi
+1
+Gross salary
+(a) Salary as per provisions contained in section
+17(1) of the Income-tax Act, 1961
+29753675
+29753675
+2
+11855400
+(b) Value of perquisites u/s 17(2) of the Income tax
+Act, 1961
+333630
+189990
+427654
+951274
+(c) Profits in lieu of salary under section 17(3)
+71362750
+2.
+68,731.9
+Principal Amount
+0.0
+0.0
+60,601.4
+135.3
+60,159.8
+306.3
+ii) Interest due but not paid
+Principal Amount
+i)
+Indebtedness at the beginning of the financial year
+Total Indebtedness
+Deposits(1)
+Unsecured Loans
+Secured Loans
+excluding deposits
+(in Million)
+Indebtedness of the Company including interest outstanding / accrued but not due for payment
+V) INDEBTEDNESS
+0
+0
+0
+0
+0
+0
+0.0
+Mr. Gautam Doshi has been appointed as Additional Independent Director w.e.f. May 25, 2018, and he holds 8000 shares as on the date of this Report.
+* Was Director upto November 15, 2017
+#Was Chief Financial Officer upto June 19, 2017
+## Appointed as Chief Financial Officer w.e.f. June 19, 2017
+@includes shares transferred as margin, if any
+37
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+** Appointed as Additional Independent Director w.e.f. November 14, 2017
+0.0
+iii) Interest accrued but not due(2)
+6.8
+138,194.3
+Change: Addition/ (Reduction) in Interest accrued
+2.3
+(23.1)
+0.0
+(20.8)
+17.0
+but not Due(2)
+(195.9)
+8,549.0
+(17.0)
+8,336.1
+Indebtedness at the end of the financial year
+i)
+Net Change
+108.2
+137,979.2
+Reduction: Principal Amount (3)/(4)
+63.1
+0.0
+69.9
+Total (i+ii+iii)
+313.2
+60,222.9
+198.1
+135.3
+Change in Indebtedness during the financial year
+Addition: Principal Amount (3)
+0.0
+146,551.3
+0.0
+146,551.3
+60,671.4
+3783394
+0
+0
+Shareholding at the beginning
+of the year
+iii) Change in Promoter's Shareholding (please specify, if there is no change)
+0.0
+0
+9.60
+230285690
+0
+9.60
+230285690
+Dilip S. Shanghvi
+1
+during the year
+% change in
+share holding
+% of Shares
+Pledged/
+encumbered to
+total shares
+% of total Shares
+of the company
+No. of Shares
+%of Shares
+Pledged/
+encumbered to
+total shares
+GRAND TOTAL (A)+(B)+(C)
+* includes Promoter Group
+2385026775 14264406 2399291181
+100.00
+2386200133 13123047 2399323180
+100.00
+Sr. No.
+0.00
+Shareholding at the beginning of the year
+Share holding at the end of the year
+Sr.
+No.
+Shareholder's Name
+No. of Shares
+% of total Shares
+of the company
+ii) Shareholding of Promoter as on March 31, 2018
+benefit) Regulations, 2014
+Cumulative Shareholding
+during the year
+1. Dilip S. Shanghvi
+Family Investment Private Limited
+3.
+Tejaskiran Pharmachem Industries
+Private Limited
+2.
+Viditi Investment Private Limited
+1.
+% of total Shares
+of the Company
+of the Company
+Cumulative Shareholding
+during the year
+No. of shares
+No. of shares
+% of total Shares
+No.
+For Each of the top 10 shareholders
+Sr.
+Shareholding
+iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs
+and ADRs):
+9.60
+At the beginning of the year
+Increase / Decrease in Share
+holding during the year
+At the end of the year
+230285690
+% of total Shares of
+the Company
+9.60
+% of total Shares of
+No. of shares
+the Company
+No. of shares
+230285690
+No Change during the year
+230285690
+230285690
+9.60
+9.60
+230285690
+9.60
+SEBI (Share based employee
+0.00
+0.00
+0
+4424397
+0.16
+3812406
+0
+3812406
+viii) Hindu Undivided Family
+0.00
+0.00
+21040
+0
+21040
+0.00
+23000
+0
+23000
+vii) Foreign Nationals
+3783394
+0.16
+0.00
+vi)
+Trusts
+13847725
+4424397
+0
+0.58
+15374984
+0
+15374984
+0.64
+0.06
+13847725
+0.18
+0.03
+ix) IEPF
+12.13
+45.62
+302985219 10563226
+1081356752 13111047
+313548445
+1094467799
+13.07
+0.94
+45.62
+1094405434
+0.00
+0
+30366
+0.00
+0
+0
+0
+30366
+5.
+290940740
+Employee Benefit Trust under
+0
+0
+0
+0
+469252
+0
+279237075 11703665
+1080153028 14252406
+469252
+0.02
+Sub total (B)(2)
+Total Public shareholding Public
+Group (B)=(B)(1)+(B)(2)
+C
+Shares held by Custodian for
+GDRs & ADRs
+0.02
+4. Quality Investments Pvt. Ltd.
+Life Insurance Corporation of India
+Increase / Decrease in Share holding
+6. Virtuous Finance Private Limited
+10. Lakshdeep Investments & Finance
+(P) Ltd.
+1.67
+40153960
+1.67
+40153960
+1.67
+40153960
+1.67
+40153960
+3.00
+72006776
+3.00
+72006776
+3.00
+72006776
+1.53
+36752352
+83751259
+3.49
+0
+3.49
+8.
+ICICI Prudential Value Discovery
+Fund and various Fund Accounts
+Increase / Decrease in Share holding
+At the beginning of the year
+At the beginning of the year
+1.47
+35254424
+1.47
+9.
+Aditya Medisales Limited
+Various dates during the year*
+At the end of the year
+At the beginning of the year
+At the end of the year
+35254424
+34754907
+1.45
+34754907
+% of total Shares
+No. of shares
+No. of shares
+of the Company
+of the Company
+1.
+% of total Shares
+Israel Makov
+0
+0
+0
+0
+At the end of the year
+0
+At the beginning of the year
+At the end of the year
+no
+Sr.
+1.45
+Increase / Decrease in Share holding Various dates during the year*
+At the end of the year
+370000
+0.01
+35124907
+1.46
+Name of Director / KMP
+35124907
+35124907
+1.46
+*The trading has taken place on various dates, therefore the change has been shown on consolidated basis.
+Note: Shareholding has been consolidated on PAN basis.
+v) Shareholding of Directors and Key Managerial Personnel: (Held singly or jointly as first holder)
+Shareholding at the
+beginning of the year
+Cumulative Shareholding
+during the year
+1.46
+0
+3.49
+3.49
+7.60
+182379237
+7.60
+182379237
+7.60
+182379237
+7.60
+182379237
+7.60
+182437880
+7.60
+182437880
+7.60
+182437880
+7.60
+182437880
+8.12
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+At the end of the year
+At the beginning of the year
+Various dates during the year*
+At the end of the year
+At the beginning of the year
+At the end of the year
+200846362
+200846362
+194820971
+8.37
+200846362
+8.37
+8.37
+106329652
+200846362
+8.12
+194820971
+8.12
+194820971
+8.12
+194820971
+8.37
+4.43
+106329652
+4.43
+BOARD'S REPORT
+Shareholding
+Sr.
+Cumulative Shareholding
+during the year
+For Each of the top 10 shareholders
+No.
+ANNUAL REPORT 2017-18
+No. of shares
+% of total Shares
+No. of shares
+of the Company
+7.
+Virtuous Share Investments Private At the beginning of the year
+Limited
+83751259
+% of total Shares
+of the Company
+83751259
+36
+96851821
+38973225
+1.63
+145302877
+6.06
+145302877
+6.06
+4.04
+145302877
+96851821
+4.04
+96851821
+4.04
+96851821
+4.04
+6.06
+0.00
+14
+0
+2(6)
+117 Vintage Power Generation LLP
+India
+Not Applicable
+Associate
+39.41
+40.55
+2(6)
+IV SHARE HOLDING PATTERN (EQUITY SHARE BREAKUP AS PERCENTAGE OF TOTAL EQUITY AS ON
+MARCH 31, 2018)
+i)
+No. of Shares held at the beginning of the year
+Category of Shareholders
+Demat
+Physical
+Category-wise shareholding
+Total
+Associate
+India
+USA
+Not Applicable
+Associate
+11.69
+2(6)
+115
+Not Applicable
+Trumpcard Advisors and Finvest LLP
+Not Applicable
+Associate
+40.61
+2(6)
+116
+Vento Power Generation LLP
+India
+% of Total
+Shares
+Physical
+No. of Shares held at the end of the year
+Demat
+293200513
+0
+0
+0
+293200513
+12.22
+0.00
+12.22
+0.00
+0
+0.00
+Government
+c)
+Bodies Corporate
+1010366094
+12000 1010378094
+0.00
+0
+293200513
+0
+0
+% Change
+Total
+% of Total
+Shares
+during the
+year
+A
+Promoter*
+1)
+Indian
+a)
+Individual/HUF
+293200513
+b)
+Central Government/ State
+0
+scPharmaceuticals Inc.
+114
+2(6)
+19.99
+Associate
+19.99
+2(6)
+USA
+Not Applicable
+Associate
+Not Applicable
+19.99
+34
+ANNUAL REPORT 2017-18
+BOARD'S REPORT
+0
+Address of the
+Name of the Company
+2(6)
+USA
+108 HRE III LLC
+107 HRE II LLC
+2(6)
+105
+Dr. PY Institute LLC
+USA
+Not Applicable
+Associate
+19.99
+2(6)
+106
+Generic Solar Power LLP
+India
+Not Applicable
+Associate
+28.76
+2(6)
+CIN/GLN
+d)
+Holding/
+Subsidiary/
+No.
+Not Applicable
+Associate
+19.99
+2(6)
+112 Medinstill Development LLC
+USA
+USA
+Not Applicable
+19.99
+2(6)
+113 Medinstill LLC
+USA
+Not Applicable
+Associate
+Associate
+111 Intact Skin Care LLC
+2(6)
+19.99
+Company
+held
+Applicable
+Section
+Associate
+109
+HRE LLC
+USA
+Not Applicable
+Associate
+19.99
+2(6)
+110 Intact Pharmaceuticals LLC
+USA
+Not Applicable
+Associate
+% of shares
+Financial Institutions/ Bank
+0
+0
+Not Applicable
+Brazil
+Sun Farmaceutica do Brasil Ltda.
+53
+2(87)(ii)
+Subsidiary 100.00
+Subsidiary 100.00
+Not Applicable
+70.00
+Subsidiary
+Not Applicable
+South Africa
+Mexico
+SPIL De Mexico S.A. DE C.V.
+52
+2(87)(ii)
+2(87)(ii)
+54 Sun Global Canada Pty. Ltd.
+Canada
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+33
+2(87)(ii)
+Subsidiary 100.00
+Not Applicable
+UAE
+2(87)(ii)
+Subsidiary 100.00
+Not Applicable
+UAE
+Sun Global Development (FZE)
+56 Sun Laboratories (FZE)
+55
+2(87)(ii)
+Subsidiary 100.00
+Not Applicable
+Sonke Pharmaceuticals Pty Limited
+PHARMA
+51
+Subsidiary 100.00
+Egypt
+Rexcel Egypt LLC
+47
+2(87)(ii)
+100.00
+2(87)(ii)
+48
+67.50
+Not Applicable
+U51900MH2006PTC158889
+India
+Realstone Multitrade Private Limited
+46
+USA
+Ranbaxy Signature LLC
+Subsidiary
+Subsidiary
+S. C Terapia S.A.
+Romania
+Not Applicable
+Not Applicable
+U51900MH2006PTC159237
+India
+Softdeal Trading Company Private Limited
+50
+2(87)(ii)
+Subsidiary 100.00
+U73100MH2005PTC150606
+India
+Skisen Labs Private Limited
+49
+2(87)(ii)
+96.81
+Subsidiary
+2(87)(ii)
+Subsidiary 100.00
+2(87)(ii)
+36.90
+Sr.
+No.
+0.00
+0.00
+12000
+1276774
+1304855381
+0.05
+0.00
+0
+54.38
+2)
+Foreign
+a)
+Individuals (NRIs)
+b)
+Other Individuals
+0.00
+0.00
+42.11
+1010378094
+0
+e)
+Any other (Trusts)
+1276774
+0
+1276774
+Sub total (A)(1)
+1304843381
+12000
+1304855381
+42.11
+0.00
+0.05
+54.38
+1010366094
+0
+1276774
+1304843381
+12000
+0
+0
+c)
+Name of the Company
+Bodies Corporate
+Financial Institutions/ Bank
+58
+2(87)(ii)
+100.00
+Subsidiary
+U25200MH1997PLC240268
+India
+Sun Pharma (Netherlands) B.V.
+Sun Pharma Laboratories Limited
+Applicable
+Section
+held
+% of shares
+Holding/
+Subsidiary/
+Associate
+CIN/GLN
+Address of the
+Company
+57
+Netherlands
+Not Applicable
+Subsidiary
+e)
+Any other
+Sub total (A)(2)
+Total shareholding of Promoter*
+(A)=(A)(1)+(A)(2)
+0
+0
+0
+Australia
+Sun Pharma ANZ Pty Ltd
+59
+(Netherlands) B.V.]
+[Formerly known as Ranbaxy
+2(87)(ii)
+100.00
+d)
+45
+Associate
+India
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+27
+73
+74
+Australia
+Sun Pharmaceutical Industries (Europe) B.V.
+Sun Pharmaceutical Industries S.A.C.
+[Formerly known as Ranbaxy-PRP (Peru) S.A.C.]
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+Peru
+Not Applicable
+Netherlands
+Subsidiary 100.00
+Sun Pharmaceutical Industries (Australia)
+Pty Ltd.
+2(87)(ii)
+2(87)(ii)
+70
+Sun Pharmaceutical Industries, Inc.
+USA
+Not Applicable
+Subsidiary
+72
+100.00
+71
+Sun Pharmaceutical (Bangladesh) Limited
+Bangladesh
+Not Applicable
+Subsidiary
+72.50
+2(87)(ii)
+2(87)(ii)
+75 Sun Pharmaceutical Medicare Limited
+India
+Subsidiary 100.00
+2(87)(ii)
+79
+Sun Pharmaceuticals France
+France
+Not Applicable
+Not Applicable
+Subsidiary 100.00
+80
+Sun Pharmaceuticals Germany GmbH
+Germany
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+South Africa
+2(87)(ii)
+Subsidiary 100.00
+U36900GJ2017PLC095132
+Subsidiary 100.00
+2(87)(ii)
+76
+Sun Pharmaceutical Peru S.A.C.
+Peru
+Not Applicable
+Subsidiary
+99.33
+2(87)(ii)
+77
+78
+Sun Pharmaceuticals Holdings USA, Inc
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+USA
+Not Applicable
+100.00
+Subsidiary
+Not Applicable
+Switzerland
+2(87)(ii)
+62 Sun Pharma East Africa Limited
+Kenya
+Not Applicable
+Subsidiary
+100.00
+Subsidiary 100.00
+2(87)(ii)
+Sun Pharma Egypt Limited
+Egypt
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+63
+Not Applicable
+Venezuela
+Sun Pharma DE Venezuela, C.A.
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+(Formerly known as Ranbaxy Australia Pty
+Limited)
+8/8/ལྤ
+60
+Sun Pharma DE Mexico S.A. DE C.V.
+Mexico
+Not Applicable
+Subsidiary
+75.00
+2(87)(ii)
+61
+(Formerly known as Ranbaxy Egypt Limited)
+2(87)(ii)
+588。
+Sun Pharma Global (FZE)
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+68
+Sun Pharma Philippines, Inc.
+Japan
+Philippines
+Subsidiary
+100.00
+2(87)(ii)
+6777
+69
+Sun Pharma Switzerland Ltd.
+Not Applicable
+Sun Pharma Japan Ltd.
+67
+2(87)(ii)
+UAE
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+65
+Sun Pharma Healthcare (FZE)
+UAE
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+66 Sun Pharma Holdings
+Mauritius
+Not Applicable
+Subsidiary 100.00
+64
+81
+Sun Pharmaceuticals Italia S.R.L.
+Italy
+96
+Universal Enterprises Private Limited
+India
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+2(87)(ii)
+URL PharmPro, LLC
+USA
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+98
+97
+Subsidiary 100.00
+Not Applicable
+USA
+2(87)(ii)
+Cayman Islands,
+Not Applicable
+Subsidiary
+74.82
+2(87)(ii)
+British West
+Indies
+94 Taro Pharmaceuticals U.S.A., Inc.
+USA
+Not Applicable
+Subsidiary 74.82
+2(87)(ii)
+95
+The Taro Development Corporation
+Zenotech Farmaceutica Do Brasil Ltda
+74.82
+Brazil
+Subsidiary
+2(87)(ii)
+102 ALPS LLC
+USA
+Not Applicable
+Associate
+19.99
+57.50
+2(6)
+Germany
+Not Applicable
+Associate
+45.00
+2(6)
+104 Composite Power Generation LLP
+103 Artes Biotechnology GmbH
+Subsidiary
+Not Applicable
+Nigeria
+38.21
+2(87)(ii)
+99 Zenotech Inc
+USA
+Not Applicable
+Subsidiary
+57.56
+2(87)(ii)
+100 Zenotech Laboratories Limited
+India
+L27100AP1989PLC010122
+Subsidiary
+57.56
+2(87)(ii)
+101 Zenotech Laboratories Nigeria Limited
+Not Applicable
+Not Applicable
+Subsidiary
+Ireland
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+85
+Taro International Limited
+UK
+Israel
+Subsidiary 74.82
+2(87)(ii)
+86 Taro Pharmaceutical Industries Ltd.
+Israel
+Not Applicable
+Subsidiary
+Not Applicable
+Sun Pharmaceuticals UK Limited
+84
+(Formerly known as Ranbaxy Morrocco LLC)
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+82
+Sun Pharmaceuticals Korea Ltd.
+South Korea
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+83
+Sun Pharmaceuticals Morocco LLC
+Morocco
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+74.82
+Not Applicable
+2(87)(ii)
+USA
+Not Applicable
+Subsidiary
+74.82
+2(87)(ii)
+91
+Taro Pharmaceuticals Inc.
+Netherlands
+Canada
+Subsidiary
+74.82
+2(87)(ii)
+92
+93
+Taro Pharmaceuticals Ireland Limited
+Taro Pharmaceuticals North America, Inc.
+Not Applicable
+90 Taro Pharmaceuticals Europe B.V.
+2(87)(ii)
+Subsidiary 74.82
+Not Applicable
+Subsidiary
+74.82
+2(87)(ii)
+88
+Taro Pharmaceuticals (UK) Limited
+UK
+Not Applicable
+Subsidiary
+74.82
+2(87)(ii)
+89
+Taro Pharmaceuticals Canada Ltd.
+Canada
+Not Applicable
+87 Taro Pharmaceutical Laboratories Inc.
+2(87)(ii)
+Sr.
+Not Applicable
+REGISTRATION AND OTHER DETAILS:
+I.
+i)
+CIN
+ii)
+Registration date
+iii)
+Name of the Company
+iv) Category/Sub-category of the Company
+v)
+Address of the Registered Office and Contact details
+Rule 12(1) of the Companies (Management and Administration) Rules, 2014
+: L24230GJ1993PLC019050
+Sun Pharmaceutical Industries Limited
+: Company Limited By Shares
+: SPARC, Tandalja, Vadodara 390012, Gujarat
+Tel No: +91 0265 6615500
+vi) Whether listed company
+vii) Name, Address, and Contact details of Registrar and Transfer
+Agent
+:
+Yes
+: Link Intime India Private Limited
+C 101, 247 Park,
+L.B.S. Marg, Vikhroli West,
+Mumbai 400 083
+: March 01, 1993
+Tel No: +91 22 49186270
+Pursuant to Section 92(3) of the Companies Act, 2013 and
+EXTRACT OF ANNUAL RETURN
+-
+Statutory Restrictions
+The Board will keep in mind any restrictions on payment of
+dividends by virtue of any regulation or loan covenant, as may
+be applicable to the Company at the time of declaration of
+dividend.
+- Tax implications
+Dividend distribution tax or any tax deduction at source as
+required by applicable tax regulations in India, as may be
+31
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+9.
+applicable at the time of declaration of dividend shall have
+bearing on the quantum of Dividend declared by the Company.
+RANGE OF DIVIDEND PAY-OUT
+The Company is committed to deliver sustainable value to all
+its stakeholders. The Company strives to distribute an optimal
+and appropriate level of the profits earned by it in its business
+and investing activity, with the equity shareholders, in the
+form of dividend. As explained in the earlier part of this Policy,
+determining the dividend pay-out is dependent upon several
+factors, both internal to a business and external to it. Taking
+into consideration the aforementioned factors, the Board
+shall have absolute discretion to determine & recommend
+appropriate Dividend pay-out for the relevant financial year.
+as on the financial year ended March 31, 2018
+10. MANNER OF UTILISATION OF RETAINED
+EARNINGS
+• To meet the working capital/ business needs of the Company
+⚫ To fund the project expansion plans of the Company
+• To fund the research expenditures of ongoing research
+projects specifically those in the advanced development
+stages
+• Towards replacement/ up-gradation/modernization of
+equipment's & plants
+• Towards investment in long term/ short term strategic joint
+ventures &/or partnerships and/or subsidiary companies
+• To fund new acquisitions & investments
+• Towards diversification of business
+• Such other manner as the Board may deem fit from time to
+time
+11. REVIEW AND AMENDMENT
+The Board may review and amend or modify this policy in
+whole or in part, at any time.
+MGT-9
+The Board may retain its earnings in order to make better
+utilisation of the available funds and increase the value of
+the stakeholders in the long run. The retained earnings of the
+Company may, inter alia, be utilized for the following purposes:
+When the markets are favorable, dividend pay-out can be
+liberal. However, in case of unfavorable Capital market
+conditions, Board may resort to a conservative dividend
+pay-out in order to conserve cash outflows.
+PRINCIPAL BUSINESS ACTIVITY OF THE COMPANY
+Sr.
+100.00
+2(87)(ii)
+74.82
+2(87)(ii)
+Aditya Acquisition Company Limited
+Israel
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+Alkaloida Chemical Company Zrt.
+Alkaloida Sweden AB
+% of shares Applicable
+held
+Section
+Hungary
+Subsidiary 99.99
+2(87)(ii)
+Sweden
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+AO Ranbaxy
+Russia
+Not Applicable
+Subsidiary
+Not Applicable
+All the business activities contributing 10% or more of the total turnover of the Company:
+Holding/
+Subsidiary/
+Associate
+Subsidiary
+Subsidiary
+USA
+Name and Description of main products/services
+No.
+1
+Pharmaceuticals
+32
+NIC code of the
+Product/Service
+210
+ANNEXURE - B
+% to total turnover
+of the Company
+100
+ANNUAL REPORT 2017-18
+Not Applicable
+BOARD'S REPORT
+Sr.
+PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES AS ON MARCH 31, 2018
+Address of the
+Name of the Company
+CIN/GLN
+2123456
+No.
+Company
+2 Independence Way LLC
+3 Skyline LLC
+USA
+Not Applicable
+III
+- Capital Market
+Considering the state of economy in the Country, the policy
+decisions that may be formulated by the Government and
+other similar conditions prevailing in the international market
+which may have a bearing on or affect the business of the
+Company, during uncertain or recessionary economic and
+business conditions, the Board may consider retaining a
+larger part of the profits to have sufficient reserves to absorb
+unforeseen circumstances.
+Macroeconomic conditions
+f)
+the Directors have devised proper systems to ensure
+compliance with the provisions of all applicable laws and that
+such systems were adequate and operating effectively.
+CONSOLIDATED ACCOUNTS
+The consolidated financial statements for the year ended March 31,
+2018 have been prepared in accordance with Indian Accounting
+Standards (Ind AS) notified under the Companies (Indian Accounting
+Standards) Rules, 2015.
+CREDIT RATING
+ICRA Ltd. has reaffirmed the highest credit rating of '[ICRA]
+A1+'/'[ICRA] AAA(Stable)' for the bank facilities, long term/short
+term borrowings and commercial paper programs of the Company.
+Further, CRISIL Ltd. has also reaffirmed the highest credit rating of
+'CRISIL A1+ and CRISIL AAA/Stable' for short term & long term bank
+facilities and commercial paper programs of the Company.
+BUSINESS RESPONSIBILITY REPORTING
+The Business Responsibility Report of the Company for the year
+ended March 31, 2018, is made available on the website of the
+Company at http://www.sunpharma.com/pdflist/all-documents
+and forms part of the Annual Report, and is also available at the
+Registered office / Corporate office of the Company for inspection.
+A copy of the aforesaid report shall be made available to such of
+those shareholders who are desirous and interested, upon receipt of
+a written request from them.
+ABRIDGED ANNUAL REPORT
+In terms of the provision of Section 136(1) of the Act, Rule 10 of
+Companies (Accounts) Rules, 2014 and Regulation 36 of the Listing
+BOARD'S REPORT
+Regulations and to support Green Initiative, the Board of Directors
+has decided to circulate the physical copy of Abridged Annual
+Report containing salient features of Financial Statements and other
+documents for financial year 2017-18 to the members, who have not
+registered their e-mail ids. All the annexures to the Board's Report
+referred herein viz., Annexure - A to Annexure - G and the Corporate
+Governance Report (including its annexures) have been excluded
+from the Abridged Annual Report which is being circulated to the
+members who have not registered their e-mail id.
+Your Directors wish to thank all stakeholders, employees and
+business partners, Company's bankers, medical professionals
+and business associates for their continued support and valuable
+cooperation.
+The Directors also wish to express their gratitude to investors for the
+faith that they continue to repose in the Company.
+Place: Mumbai
+Date: May 25, 2018
+For and on behalf of the Board of Directors
+Israel Makov
+Chairman
+29
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+DIVIDEND DISTRIBUTION POLICY
+ANNEXURE-A
+1. OBJECTIVES AND SCOPE:
+The members who are desirous of receiving the full version of the
+Annual Report may write to the Company's Registrar and Share
+Transfer Agent for a copy of the same. Full version of the Annual
+Report can also be accessed from the Company's website:
+www.sunpharma.com
+2.
+ANNUAL REPORT 2017-18
+0.00
+0
+0.00
+0.00
+0
+0
+0
+0.00
+0
+0
+0
+0.00
+Subsidiary 100.00
+0.00
+0
+0
+0.00
+0
+0
+0
+0.00
+0.00
+0
+0
+0
+0
+The Board of Directors (the "Board") of the Sun Pharmaceutical
+Industries Limited (the "Company") recognizes the need to
+lay down a broad framework for considering decisions by the
+Board of the Company, with regard to distribution of dividend
+(including any interim dividend) to its equity shareholders and/
+or retaining or plough back of its profits.
+The Policy sets out the circumstances and different factors for
+consideration by the Board at the time of taking such decisions
+of distribution or of retention of profits, in the interest of
+providing transparency to the equity shareholders. The Policy
+is not an 'alternative' but a 'Guide' to the decision of the Board
+for recommending dividend, which may be made after taking
+into consideration all the relevant circumstances enumerated
+hereunder and such other factors as may be decided as
+relevant by the Board.
+While recommendation of Dividend shall be guided by this
+Policy, in extraordinary circumstances, the Board shall have
+complete liberty to recommend dividend in deviation to this
+policy, if so deemed necessary in the best interests of the
+Company and its stakeholders.
+• Return on invested capital
+The efficiency with which the Company uses its capital will
+impact the decision of dividend declaration.
+Magnitude of earnings of the Company
+Since dividend is directly linked with the availability of earning
+over the long haul, the magnitude of earnings will significantly
+impact the dividend declaration decisions of the Company.
+• Cost of borrowings
+The Board will analyze the requirement of necessary funds
+considering the long term or short term projects proposed to
+be undertaken by the Company and the viability of the options
+in terms of cost of raising necessary funds from outsiders
+such as bankers, lending institutions or by issuance of debt
+securities or plough back its own funds.
+• Obligations to creditors
+The Company should be able to repay its debt obligations
+without much difficulty over a reasonable period of time.
+8.
+The decision of dividend declaration shall be taken after
+considering the volume of such obligations and time period
+of repayment.
+• Adequacy of profits
+In addition to the circumstances covered under point 6 above,
+the Board shall, inter alia, consider the following financial
+parameters, while taking decisions of a dividend payout during
+a particular year-
+If during any financial year, the Board determines that the
+profits of the Company are inadequate on standalone basis
+and/or consolidated basis, the Board may decide not to declare
+dividends for that financial year.
+The post dividend EPS can have strong impact on the funds of
+the Company, thus, impacting the overall operations on day-to-
+day basis and therefore, affects the profits and can impact the
+decision for dividend declaration during a particular year.
+FACTORS THAT MAY AFFECT DIVIDEND
+PAYOUT
+⚫ Internal Factors
+-
+Product/Project expansion plan
+The Company's growth oriented decision to conserve cash in
+the Company for future expansion plan impacts shareholders
+expectation for the long run which shall have to considered by
+the Board before taking dividend decision.
+- General Working capital requirement
+In addition to the above, the general working capital
+requirements within the Company will also impact the decision
+of dividend declaration.
+- Past performance/ reputation of the Company
+The trend of the performance/ reputation of the Company that
+has been during the past years determine the expectation of
+the shareholders.
+• External Factors
+• Post dividend Earning Per Share (EPS)
+7. THE FINANCIAL PARAMETERS THAT SHALL
+BE CONSIDERED WHILE DECLARING/
+RECOMMENDING DIVIDEND
+The Board, while considering the decision of dividend pay-out
+or retention of a certain amount or entire profits and/or out
+of the accumulated profits of the Company, shall, as far as
+possible, consider the expectations of the major stakeholders
+including the small shareholders of the Company who generally
+expect a regular dividend payout.
+• Expectations of major stakeholders, including small
+shareholders
+The Policy reflects the intent of the Company to reward its
+equity shareholders by sharing a portion of its profits after
+adjusting for accumulated losses, if any, and also retaining
+sufficient funds for future growth of the Company. The
+Company intends to pay, subject to the circumstances and
+factors enlisted hereon, dividend, which shall be consistent
+with the performance of the Company over the years.
+Subject to the considerations as provided in the Policy, the
+Board shall determine the dividend payout in a particular year
+after taking into consideration the operating and financial
+performance of the Company, the advice of executive
+management including the CFO, and other relevant factors.
+The Policy shall not apply to:
+• Determination and declaring dividend on preference shares,
+if any.
+RELEVANT REGULATIONS
+The Securities and Exchange Board of India ("SEBI") vide its
+Notification dated July 08, 2016 has amended the SEBI (Listing
+Obligations and Disclosure Requirements) Regulations, 2015
+(the “Listing Regulations") by inserting Regulation 43A in order
+to make it mandatory to have a Dividend Distribution Policy in
+place by the top five hundred listed companies based on their
+market capitalisation calculated as on the 31st day of March
+of every year. The Company, being one of the top five hundred
+listed Companies in India on the basis of market capitalisation,
+requires to comply with the requirements of Regulation 43A.
+3. EFFECTIVE DATE
+The Policy shall become effective from the date of its adoption
+by the Board i.e. 10th November, 2016.
+4. CATEGORY OF DIVIDENDS
+The Board of Directors shall have the power to recommend final
+dividend to the equity shareholders for their approval in the
+Annual General Meeting of the Company. Subject to compliance
+with the provisions of Companies Act, 2013 including the Rules
+made thereunder and other relevant regulations, if any, the
+Board of Directors shall also have the absolute power to declare
+interim dividend during any financial year out of the surplus in
+the profit and loss account and out of profits of the financial
+year in which such interim dividend is sought to be declared,
+as and when they consider it fit in compliance with Companies
+Act, 2013 and other relevant regulations. Interim Dividend
+may be paid in order to supplement the annual dividend or in
+exceptional circumstances.
+5. PAYMENT OF DIVIDEND FROM RESERVES
+Dividend shall normally be declared from the profit earned by
+the Company during the relevant financial year after adjusting
+for accumulated losses & unabsorbed depreciation, if any
+and out of the carried forward profits not transferred to any
+reserves. However, under special circumstances, Dividend
+may be declared out of the accumulated profits earned by it
+in previous years and transferred by it to the free reserves,
+subject to compliance with the requirements of the relevant
+provisions of the Companies Act, 2013 including the Rules
+made thereunder.
+6. CIRCUMSTANCES TO BE CONSIDERED WHILE
+DETERMINING DIVIDEND PAY-OUT
+The Board shall consider the circumstances provided below
+before determination of any dividend payout after analyzing
+the prospective opportunities and threats, viability of the
+options of dividend payout or retention etc. The decision
+of dividend payout shall, majorly be based on the aforesaid
+factors considering the balanced interest of the stakeholders
+and the business requirements of the Company.
+• Accumulated Losses, if any
+The profits earned by the Company during any financial
+year shall be first utilized to set off the accumulated losses/
+unabsorbed depreciation, if any of the Company from the
+previous financial years.
+Operating cash flow of the Company
+The Board will consider the impact of proposed dividend on
+the operating cash flow of the Company and shall satisfy itself
+of its adequacy before taking a decision on whether to declare
+dividend or retain its profits.
+30
+ANNUAL REPORT 2017-18
+BOARD'S REPORT
+• Transfer to Reserves and other Statutory Requirements
+The Board shall examine the implication of relevant statutory
+requirements including payment of Dividend Distribution
+Tax, transfer of a certain portion of profits to Reserves etc.,
+if applicable, on the financials of the Company at the time of
+taking decision with regard to dividend declaration or retention
+of profit.
+• Covenants with lenders/ Debenture Trustees, if any
+The decision of dividend pay-out shall also be subject to
+compliance with covenants contained in any agreement
+entered into by the Company with the Lenders/Debenture
+Trustee's, from time to time, if any.
+• Prudential & Strategic requirements
+The Board shall analyse the ongoing and prospective projects
+and strategic decisions including need for replacement of
+capital assets, expansion and modernization etc., before
+recommending Dividend Pay-out for any financial year with
+an object to build a healthy reserve of retained earnings to
+augment long term strength and to build a pool of internally
+generated funds to provide long-term resources as well as
+resource-raising potential for the Company.
+100.00
+2(87)(ii)
+ACKNOWLEDGEMENTS
+7822222
+Subsidiary 100.00
+2(87)(ii)
+32
+Ranbaxy (U.K.) Limited
+UK
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+33
+Ranbaxy Europe Limited
+UK
+Not Applicable
+Not Applicable
+2(87)(ii)
+34
+Ranbaxy Farmaceutica Ltda.
+Brazil
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+35
+Ranbaxy GmbH
+Germany
+Not Applicable
+Subsidiary 100.00
+Subsidiary 100.00
+Thailand
+31
+USA
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+28
+Ranbaxy South Africa Proprietary Limited
+South Africa
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+Ranbaxy (Thailand) Co. Ltd.
+29
+Malasiya
+Not Applicable
+Subsidiary
+90.74
+2(87)(ii)
+30
+Ranbaxy (Poland) SP. Z.O.O.
+Poland
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+Ranbaxy (Malasiya) Sdn. Bhd.
+PI Real Estate Ventures, LLC
+2(87)(ii)
+Ranbaxy Holdings (UK) Limited
+2(87)(ii)
+Subsidiary 100.00
+Not Applicable
+Ukrain
+Ranbaxy Pharmaceuticals Ukraine LLC
+43
+2(87)(ii)
+Subsidiary 100.00
+Not Applicable
+Canada
+Ranbaxy Pharmaceuticals Canada Inc.
+44
+42
+100.00
+Subsidiary
+Not Applicable
+South Africa
+Ranbaxy Pharmaceuticals (Pty) Ltd.
+41
+2(87)(ii)
+85.31
+Subsidiary
+(Formerly known as ZAO Ranbaxy)
+Not Applicable
+2(87)(ii)
+36
+Ranbaxy Pharmacie Generiques
+Nigeria
+UK
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+37
+Ranbaxy Inc.
+USA
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+38
+France
+Ranbaxy Ireland Limited
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+Ranbaxy Italia S.P.A.
+Italy
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+40
+Ranbaxy Nigeria Limited
+Ireland
+27
+39
+100.00
+Faststone Mercantile Company Private
+India
+U51900MH2006PTC159266
+Subsidiary 100.00 2(87)(ii)
+Subsidiary 100.00
+Subsidiary 100.00
+2(87)(ii)
+2(87)(ii)
+Limited
+14
+Foundation for Disease Elimination and
+India
+U85190MH2016NPL286097 Subsidiary 100.00 2(87)(ii)
+Control of India
+13
+15
+India
+U90009GJ2010PLC062892
+Subsidiary 100.00
+2(87)(ii)
+16
+Insite Vision Incorporated
+USA
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+17 JSC Biosintez
+Green Eco Development Centre Limited
+Russia
+2(87)(ii)
+12 DUSA Pharmaceuticals, Inc.
+Basics GmbH
+Germany
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+Be-Tabs Investments Proprietary Limited
+9 Caraco Pharmaceuticals Private Limited
+10 Chattem Chemicals, Inc.
+South Africa
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+USA
+India
+Subsidiary
+100.00
+2(87)(ii)
+USA
+Not Applicable
+Subsidiary 100.00
+2(87)(ii)
+11
+Dungan Mutual Associates, LLC
+USA
+Not Applicable
+U24100MH2012FTC225970
+Not Applicable
+Not Applicable
+85.10
+Subsidiary
+USA
+Pharmalucence, Inc.
+26
+2(87)(ii)
+Subsidiary 100.00
+Not Applicable
+OOO "Sun Pharmaceutical Industries" Limited Russia
+2(87)(ii)
+74.82
+Subsidiary
+Not Applicable
+USA
+Subsidiary
+One Commerce Drive LLC
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+USA
+Ohm Laboratories Inc.
+222
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+Not Applicable
+Hospitalier
+Subsidiary 100.00
+Neetnav Real Estate Private Limited
+2(87)(ii)
+2(87)(ii)
+Subsidiary 100.00
+Not Applicable
+USA
+Mutual Pharmaceutical Company, Inc.
+2(87)(ii)
+Subsidiary 100.00
+U45200MH2010PTC201611
+USA
+Not Applicable
+Office Pharmaceutique Industriel Et
+2222
+2(87)(ii)
+Subsidiary 100.00
+Not Applicable
+Spain
+Laboratorios Ranbaxy S.L.U.
+18
+France
+2(87)(ii)
+Morley & Company, Inc.
+India
+For and on behalf of the Board of Directors
+Date: May 25, 2018
+(All the details of remuneration given above are as per Form 16 as per Income Tax Act, and the ratios are calculated on that basis.)
+Remuneration paid
+as per Form 16 for
+2017-18 (including
+It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial Personnel and other
+Employees.
+Average percentage increase made in the salaries of employees other than the Key Managerial Personnel in the financial year ending
+March 31, 2018 was approximately 11.5% and the average increase in the Key Managerial Personnel remuneration was 33.18%. As
+explained above the increase in percentage of KMP's is due to refund of remuneration of Managing Director and Whole-time Director
+in during the year, as per the MCA order. The remuneration of Key Managerial Personnel has been decided in line with our overall
+reward philosophy of paying for performance (individual as well as Company performance) and ensuring market competitiveness.
+(v)
+(iv) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year
+and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any
+exceptional circumstances for increase in the managerial remuneration:
+The number of permanent employees on the rolls of the Company as on March 31, 2018: 17789
+(iii)
+The percentage increase in the median remuneration of employees in the financial year 2017-18 (Median -2018/Median 2017): 5.20%
+ii)
+ANNUAL REPORT 2017-18
+accordingly.
+*The Company has made an application to the Central Government for approval of remuneration of Mr. Dilip S. Shanghvi and Mr. Sudhir V. Valia as per
+their entitlement of 39.3 million each for the financial year 2017-18 as approved by the Board of Directors within the limits approved by the Members
+of the Company. However, in view of the aforesaid approval for application of remuneration being awaited, the Company has paid remuneration within
+the ceiling limit prescribed under Schedule V to the Companies Act, 2013 i.e. upto 30.4 million each, to Mr. Dilip S. Shanghvi and Mr. Sudhir V. Valia. On
+receipt of the approval from the Central Government of India, the balance amount of remuneration for the year 2017-18, if any, as per their entitlement,
+shall be paid to them, as applicable, and the same shall be given effect to in the year in which the approval is received. Excess remuneration, if any, after
+final approval in respect of the application for revision is received, shall be refunded by them. The percentage and ratios may further increase or decrease
+depending on the Order being passed by the MCA / Central Government. In case the approval from MCA is received for the amount of remuneration
+entitled of 39.3 million each to Mr. Dilip S Shanghvi and Mr. Sudhir V. Valia for the year 2017-18, then the ratio and the percentage increase in
+remuneration will be 85.93 and 94.2% respectively. In case the approval is received for lesser amount, then the ratio and the percentage will change
+48.0%*
+2017-18
+48.7%*
+in the Financial Year
+% increase/(decrease)
+in Remuneration
+(In Million)
+of employees
+65.80*
+65.48*
+perquisites)
+30.09
+29.94
+Ratio of remuneration
+of each Director to
+median remuneration
+Place: Mumbai
+BOARD'S REPORT
+(1) Remuneration to Non-Executive Directors consists only of sitting fees and is based on the number of meetings attended during the year. No commission
+was paid to Non-Executive Directors for the year 2017-18.
+Remuneration as per
+Form 16 for 2016-17
+after refund as per
+MCA Order
+3.50
+Not Applicable
+Not Applicable
+5.6% (2)
+28.86
+Refer Note
+Refer Note
+1.97
+-50.0%
+-5.9%
+0.0%
+Refer Note
+-10.0%
+in Remuneration (1)
+in the Financial Year
+2017-18
+% increase/(decrease)
+of each Director to
+median remuneration
+of employees
+Ratio of remuneration (1)
+Non-executive Independent Director
+Non-executive Independent Director
+Non-executive Independent Director
+##Appointed w.e.f. June 19, 2017
+**Appointed w.e.f. November 14, 2017
+#Resigned w.e.f. June 19, 2017
+Refer Note
+3.72
+1.75
+Non-executive Independent Director
+Non-executive Independent Director
+Non-executive Independent Director
+Sudhir V. Valia
+Dilip S. Shanghvi
+Name of Director
+Thus, the percentage increase in the remuneration paid for financial year 2017-18 is due to refund order of the Ministry of Corporate
+Affairs (MCA) for the remuneration pertaining to financial year 2016-17, as detailed below:
+Note: There was no increase in the total remuneration entitled to the Managing Director and Whole-time Directors, for the financial
+year 2017-18 as compared to previous financial year 2016-17. However during the year, the Company received an Order from Ministry
+of Corporate Affairs (MCA) for approval of remuneration of 2,02,29,000 each to Mr. Dilip S. Shanghvi and Mr. Sudhir V. Valia for the
+Financial Year 2016-17 and balance remuneration amounts of 91,47,601 and 89,27,010 were refunded by Mr. Dilip S. Shanghvi and
+Mr. Sudhir V. Valia respectively, to the Company. The remuneration, net of refund, for the financial year 2016-17 and the remuneration
+actually paid (in accordance with Schedule V to the Companies Act, 2013) in the financial year 2017-18 to Mr. Dilip S. Shanghvi and
+Mr. Sudhir V. Valia have been compared to arrive at the percentage increase and ratio of remuneration to median remuneration of
+employees for the financial year 2017-18.
+(3) Mr. Kalyanasundaram Subramanian, Whole-time Director of the Company, does not receive any remuneration from the Company, however he is
+receiving remuneration from Sun Pharma Laboratories Limited (SPLL), the wholly owned subsidiary of the Company, where he is also Whole-time Director
+and Chief Executive Officer.
+(2) The increase in percentage of remuneration as per Form 16 is due to Bonus of previous year paid in the current year and due to increase in the notional
+value of perquisite as per Income Tax Act, however there was no increase in his total remuneration payable for the year 2017-18.
+Israel Makov
+Chairman
+-30.0%
+Chief Financial Officer##
+Company Secretary
+Chief Financial Officer#
+14.1
+Not Applicable
+Not Applicable
+Not Applicable
+Not Applicable
+Not Applicable
+Not Applicable
+0.66
+0.0%
+2.84
+1.53
+20.23
+20.23
+FORM NO. MR-3
+The Securities and Exchange Board of India (Prohibition
+of Insider Trading) Regulations, 2015;
+FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2018.
+We further report that during the year under review:
+• Drugs and Cosmetics Act, 1940 and rules made thereunder;
+⚫ Factories Act, 1948.
+We further report that, having regard to the compliance system
+prevailing in the Company and on examination of the relevant
+documents and records in pursuance thereof, on the basis of the
+representations made by the respective plant heads of R&D centers,
+the Company has identified and complied with the following laws
+applicable to the Company:
+Based on the information received and records maintained, we
+further report that there are adequate systems and processes in
+the Company commensurate with the size and operations of the
+Company to monitor and ensure compliance with applicable laws,
+rules, regulations and guidelines.
+On verification of minutes, we have not found any dissent/
+disagreement on any of the agenda items discussed in the
+Board and Committee meetings from any of the Directors and
+all the decisions are carried through.
+Adequate notice of at least seven days was given to all
+directors to schedule the Board Meetings and Meetings of
+Committees. Agenda and detailed notes on agenda were
+sent in advance in adequate time before the meetings and a
+system exists for Directors for seeking and obtaining further
+information and clarifications on the agenda items before the
+meeting and for meaningful participation at the meeting.
+The Board of Directors of the Company is duly constituted
+with proper balance of Executive Directors, Non-Executive
+Directors, Independent Directors and Woman Director.
+1.
+We further report that:
+We further report that the Company has made application to the
+Central Government for approval of remuneration of Managing
+Director and a Whole-time Director as approved by the Board of
+Directors of the Company for FY 2017-18. The response from Central
+Government in respect of the aforesaid application is awaited.
+Further, the Company has paid the remuneration for FY 2017-18 to
+Managing Director and Whole-time Directors of the Company within
+the limits of Schedule V of the Companies Act, 2013 with a provision
+of balance payment/refund of remuneration, if any to/from Managing
+Director and a Whole-time Director as may be approved by Central
+Government with regard to aforesaid application.
+We report that, the Company has received the order from Central
+Government in respect of the re-representation/application for
+revision of remuneration made to the Central Government, as
+approved by the members of the Company for the years ended 31st
+March 2015, 31st March 2016 and 31st March 2017; to refund the
+excess remuneration paid to the Managing Director and Whole-time
+Directors which had been paid earlier subject to the approval of the
+Central Government. We have been informed by the management
+that, in compliance with the said order, the Managing Director and
+Whole-time Directors have refunded total excess remuneration of
+104.52 Million to the Company for the aforesaid financial years.
+During the period under review, the Company has complied with the
+provisions of the Act, Rules, Regulations, Guidelines etc. mentioned
+above.
+Secretarial Standards with respect to meeting of Board of
+Directors (SS-1) and General Meetings (SS-2) issued by The
+Institute of Company Secretaries of India under the provisions
+of Companies Act, 2013;
+(i)
+The Securities and Exchange Board of India (Issue and
+Listing of Debt Securities) Regulations, 2008 - Not
+applicable to the Company for the year under review;
+We have also examined compliance with the applicable clauses of
+the following:
+• The Company had allotted 18,893 Equity Shares of * 1/-
+each to eligible employees who have exercised their options
+under Sun Employees Stock Options Scheme - 2015;
+• The Company had allotted 13,106 Equity Shares of * 1/-
+each to Sun Pharma ESOP Trust under Sun Employees Stock
+Option Plan - 2015;
+•Sun Pharma Medisales Private Limited, Ranbaxy Drugs
+Limited, Gufic Pharma Limited and Vidyut Investments
+Limited, subsidiary companies of the Company were
+amalgamated into Company under Section 391 to 394
+of the Companies Act, 1956 and applicable provisions
+of the Companies Act, 2013 on 8th September 2017
+(Effective date), the appointed date for the said Scheme of
+Arrangement being 1st April 2017.
+For C. J. Goswami & Associates,
+Practicing Company Secretaries
+* Resigned w.e.f. November 15, 2017
+1.
+Our report of even date is to be read along with this letter.
+4.
+3.
+Vadodara, Gujarat.
+Sun Pharmaceutical Industries Limited,
+The Securities and Exchange Board of India (Share Based
+Employee Benefits) Regulations, 2014;
+The Members,
+BOARD'S REPORT
+ANNEXURE - 1 TO SECRETARIAL AUDIT REPORT
+ANNUAL REPORT 2017-18
+42
+This report is to be read with our letter of even date which is
+annexed as Annexure 1 and forms an integral part of this report.
+Mem No. 33697
+C. P. No. 12721
+Date: 25th May 2018.
+Place: Mumbai.
+Chintan J. Goswami
+Proprietor
+To,
+SECRETARIAL AUDIT REPORT
+i.
+3.
+Foreign Exchange Management Act, 1999 and the rules
+and regulations made thereunder to the extent of Foreign
+Direct Investment, Overseas Direct Investment and External
+Commercial Borrowings;
+iv.
+The Depositories Act, 1996 and the Regulations and Bye-laws
+framed thereunder;
+iii.
+We have conducted the Secretarial Audit of the compliances of
+applicable statutory provisions and the adherence to good corporate
+governance practice by Sun Pharmaceutical Industries Limited
+("the Company"). Secretarial Audit was conducted in a manner that
+provided us a reasonable basis for evaluating the corporate conducts
+/ statutory compliances and expressing our opinion thereon.
+The Securities Contracts (Regulation) Act, 1956 ('SCRA') and
+the rules made thereunder;
+ii.
+The Companies Act, 2013 (the Act) and the rules made
+thereunder;
+i.
+Vadodara, Gujarat.
+Sun Pharmaceutical Industries Limited,
+The Members,
+To,
+ANNEXURE - D
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
+Based on our verification of the Company's books, papers, minutes
+books, forms and returns filed and other records maintained by the
+Company and also the information provided by the Company, its
+officers, agents and authorized representatives during the conduct of
+secretarial audit, we hereby report that in our opinion, the Company
+has, during the audit period covering the financial year ended on
+31st March 2018, complied with the statutory provisions listed
+hereunder and also that the Company has proper Board processes
+and compliance mechanism in place to the extent, in the manner and
+subject to the reporting made hereinafter:
+We have examined the books, papers, minutes books, forms and
+returns filed and other records maintained by the Company for
+the financial year ended on 31st March 2018, according to the
+provisions of:
+V.
+The following Regulations and Guidelines prescribed under the
+Securities and Exchange Board of India (“SEBI”) Act, 1992:
+The Securities and Exchange Board of India (Registrars to
+an Issue and Share Transfer Agents) Regulations, 1993,
+regarding the Companies Act and dealing with client -
+Not applicable to the Company;
+g.
+2.
+The Securities and Exchange Board of India (Delisting of
+Equity Shares) Regulations, 2009 - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India (Issue of
+Capital and Disclosure Requirements) Regulations, 2009 -
+Not applicable to the Company for the year under review;
+f.
+e.
+h.
+PHARMA
+41
+The Securities and Exchange Board of India (Buyback
+of Securities) Regulations, 1998 - Not applicable to the
+Company for the year under review;
+d.
+The Securities and Exchange Board of India (Substantial
+Acquisition of Shares and Takeovers) Regulations, 2011;
+C.
+b.
+a. The Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015;
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+Mr. Sunil Ajmera
+1700000
+Mr. Uday Baldota#
+800000
+1700000
+1600000
+Total (1)
+Others, please specify
+•
+6400000
+700000 1300000 300000
+700000 1300000 300000
+800000
+1600000
+• Fee for attending Board/
+• Commission
+Committee meetings
+1 Independent Directors
+(1) to (7)
+(7)
+(6)
+1700000
+2
+Other Non-Executive Directors
+• Fee for attending Board/
+0
+800000
+0
+2.
+0
+1600000
+0
+Remuneration (A+B)
+Total Managerial
+per the Act
+Overall Ceiling as
+Total (B)=(1+2)
+• Others, please specify
+Total (2)
+• Commission
+900000
+900000
+6400000
+0
+Committee meetings
+(5)
+0
+0 900000 900000
+700000 1300000 300000 900000 7300000
+Not applicable since no commission was paid during the year. Sitting Fee is 1,00,000 for each meeting
+of the Board/Committee attended by the Director.
+(4)
+(2)
+The average net profits of the Company for the last three financial years
+was negative, due to loss incurred in last preceding three years
+Mr. Dilip S. Shanghvi, Chairman, Mr. Sudhir V. Valia, Member and Ms.
+Rekha Sethi, Member
+The contents of CSR policy can be accessed through the web link
+http://www.sunpharma.com/policies and details on projects and
+programmes are forming part of this Annual Report
+The Company has identified health, education & livelihood, environment
+protection, water management and disaster relief as the areas where
+assistance is provided on a need-based and case-to-case basis. Your
+Company persisted with participation in such activities at the local, grass-
+root level during the year.
+The CSR policy of the Company encompasses its philosophy towards
+Corporate Social Responsibility and lays down the guidelines and
+mechanism for undertaking socially useful programs for welfare &
+sustainable development of the community at large.
+Particulars
+years
+Average net profit of the Company for last three financial
+Prescribed CSR Expenditure (two percent of the amount as Since, the average net profit of the Company for the last three financial
+in item 4 above)
+5.
+Composition of the CSR Committee
+3.
+Reference to the web-link to the CSR policy and projects
+or programmes
+A brief outline of the Company's CSR policy, including
+overview of projects or programmes proposed to be
+undertaken
+2.
+1.
+Details
+ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES FOR THE FINANCIAL YEAR
+2017-18
+4.
+Details of CSR spend for the financial year:
+6.
+ANNUAL REPORT 2017-18
+(1)
+Sehgal*
+Dadha
+Total
+Amount
+Mr. Israel
+Makov
+Chaand
+Ms. Rekha
+Sethi
+Mr. Ashwin
+Dani
+Mr. Keki
+Mistry
+Mr. Hasmukh
+Shah*
+no.
+Mr. Vivek
+Mr. S
+Mohanchand
+Particulars of Remuneration
+Sr.
+Name of Directors
+(Amount in )
+BOARD'S REPORT
+B) Remuneration to other directors for the year ended March 31, 2018:
+(The remuneration to Non-Executive Directors consists only of sitting fees)
+(3)
+* For part of the year i.e. from April 01, 2017 to November 15, 2017
+# For part of the year i.e. from November 14, 2017 to March 31, 2018
+C) Remuneration to Key Managerial Personnel other than MD/Manager/WTD
+(As per Form 16, on actual payment basis)
+히
+39
+Israel Makov
+Chairman
+For and on behalf of the Board of Directors
+Date: May 25, 2018
+Place: Mumbai
+VII PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES AGAINST COMPANY, DIRECTORS AND
+OTHER OFFICERS IN DEFAULT: NIL
+51.20
+40
+22.83
+13.41
+Total
+0
+0
+0
+0
+5 Others, please specify
+0
+14.96
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+ANNEXURE-C
+INFORMATION REQUIRED UNDER SECTION 197 OF THE ACT READ WITH RULE 5(1) OF THE COMPANIES
+(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014.
+Key Managerial Personnel:
+Mr. Vivek Chaand Sehgal**
+Ms. Rekha Sethi
+Mr. Ashwin S. Dani
+Mr. Keki M. Mistry
+Mr. Hasmukh S. Shah*
+Mr. S. Mohanchand Dadha
+Mr. Kalyanasundaram Subramanian (3) Whole-time Director
+Whole-time Director
+Non-executive Chairman
+Managing Director
+Whole-time Director
+Designation
+Mr. Sailesh T. Desai
+Mr. Sudhir V. Valia
+Mr. Dilip S. Shanghvi
+Mr. Israel Makov
+Directors:
+Personnel
+Name of Director and Key Managerial
+(i) Ratio of the remuneration of each director to the median remuneration of the employees of the Company
+for the financial year 2017-18 and the percentage increase in remuneration of each Director, Chief Financial
+Officer and Company Secretary during the financial year 2017-18:
+0
+0
+0
+Commission as % of profit
+(b) Value of perquisites under section 17(2) of the
+50.20
+22.21
+14.62
+13.38
+(a) Salary as per provisions contained in section 17(1)
+of the Income-tax Act, 1961
+Gross salary
+1
+Total
+(in Million)
+Mr. CS
+Muralidharan
+(CFO w.e.f. June
+19, 2017)
+Mr. Uday Baldota
+(CFO upto June 19,
+2017)
+(Company
+Secretary)
+Mr. Sunil Ajmera
+Key Managerial Personnel
+no.
+Particulars of Remuneration
+Sr.
+79614024
+0.03
+Mr. C.S. Muralidharan##
+0.34
+1.00
+4
+0
+0
+0
+Sweat Equity
+3
+0
+0
+0
+0
+Stock Option
+2
+0
+0
+0
+0
+Profits in lieu of salary under section 17(3) of the
+Income Tax Act, 1961
+(c)
+Income Tax Act, 1961
+0.62
+We have followed the audit practices and processes as
+were appropriate to obtain reasonable assurance about the
+correctness of the contents of the Secretarial records. The
+verification was done on test basis to ensure that correct
+facts are reflected in secretarial records. We believe that the
+processes and practices we followed provide a reasonable
+basis for our opinion.
+(in Million)
+Wherever required, we have obtained the Management
+representation about the compliance of laws, rules and
+regulations and happening of events etc.
+Project or
+district, H.P.)
+M.P.) Toansa (SBS Nagar, Punjab)
+and Paonta Sahib (Sirmour
+(Dewas, M.P.) Malanpur (Bhind,
+(Vadodara, Gujarat), Madurantakam
+(Kanchipuram, Tamilnadu), Mohali
+(SAS Nagar, Punjab), Dewas
+Maharashtra), Halol (Panchmahal,
+Gujarat), Ankleshwar and Panoli
+(Bharuch, Gujarat), Karkhadi
+Ahmednagar (Ahmednagar,
+2
+2. Specify the State and District where
+projects or programs was undertaken
+Projects or Programs
+0.03
+1.09 Directly
+No.(iv)
+Grand Total
+26.22
+0.75
+1. Local Area or other
+Sanitation
+Programme
+Healthcare
+under Item
+No.(i)
+3
+Amount
+(in Million)
+0.06
+1.54
+1.60
+0.28
+2.93
+9.15
+44
+は
+and Malanpur (Bhind, M.P.)
+(Kanchipuram, Tamilnadu), Halol
+(Panchmahal, Gujarat) and Silvassa
+(UT of Dadra & Nagar Haveli)
+Halol (Panchmahal, Gujarat),
+Ahmednagar (Ahmednagar,
+Maharashtra), Silvassa (UT
+of Dadra & Nagar Haveli),
+Madurantakam (Kanchipuram,
+Tamilnadu), Toansa (SBS Nagar,
+Punjab), Panoli (Bharuch, Gujarat)
+Maharashtra), Madurantakam
+Ahmednagar (Ahmednagar,
+Education
+under Item
+No.(ii)
+Programme
+Education
+85.43
+The CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the
+Company.
+Place: Mumbai
+Date: May 25, 2018
+(2) Sanitation Project:
+Sun Pharma is working towards achieving aim of promoting
+"Swachh Bharat" which is a national agenda of sanitation and
+cleanliness by 2019. This is to change the socio economic
+situation of communities; the Company has decided to make
+villages free from open defecation practices. Sun Pharma
+has undertaken CSR Project on Construction of Individual
+Households Toilets and Behavioral Change Communication
+to promote sanitation across different plant locations in India
+located at Ahmednagar, Halol, Silvassa and Madurantakam.
+This programme is implemented by the CSR Department in
+PPP model and also with the help of implementing agency
+GVT-Dahod :
+• To construct toilets for the community with provision of
+100% coverage in villages.
+• To conduct intensive Information, Education and
+Communication (IEC) campaign about sanitation with the
+involvement of PRIs, Co-operatives, ASHAs, Anganwadi
+workers, Women Groups, Self Help Groups, NGOs etc.
+To achieve the objective of zero open defecation, 201
+Individual Household Toilets were constructed during FY 2017-
+18 with an investment of 3.21 million.
+(3) Education Programme
+Sun Pharma believes that "Education is a key to development"
+and hence we have been working on concept of MHRD's on
+'model school development', in which various programmes
+were executed like up-gradation of classroom, renovation and
+up keeping of schools, providing proper drinking water facilities
+at rural schools and other required up-gradation in school
+infrastructure so that it converts into model schools over a
+period of years. Educational Programme was implemented at
+Ahmednagar, Halol, Madurantakam, Panoli, Silvassa, Toansa
+and Malanpur. The programme has benefitted 5770 students
+with an investment of 1.60 million during the FY 2017-18.
+(4) Kidney Dialysis Project:
+Kidney dialysis project was focused upon providing free kidney
+dialysis services to poor and unprivileged sections of society
+and is being implemented with the help of implementing
+agency Rogi Kalyan Samiti at Silvassa. There are many poor
+patients who require dialysis treatment several times a week
+and are in immense need of financial assistance in order to
+undergo dialysis treatment. The project has proven as a boon
+for them and benefitted 127 such patients with an investment
+of 0.40 million during the FY 2017-18.
+(5) Drinking water Projects
+Sun Pharma has installed a tubewell and pump house was also
+constructed for provision of drinking water in village Toansa
+through underground pipeline. The same was operated and
+maintained by Sun Pharma for providing drinking water on
+regular basis. It has benefitted 210 households with the cost
+involvement of 0.15 million.
+(6) Healthcare Programme
+As a part of continuous efforts to provide health facilities
+for local peripheral areas of plants, Sun Pharma renovated
+one abandoned dispensary of Zila Parishad providing all
+infrastructural needs and required equipment's and medicines
+in addition to the Government supply. Company is maintaining
+this dispensary since 2009 as continuous project which
+covers population of nearby villages i.e. Bholewal, Toansa and
+Railmajra with the following given objectives:
+- To deliver primary health care services to the underserved
+rural areas staying close to the dispensary to ensure medical
+health services to all.
+- To reduce Infant and Maternal Mortality and improve the
+health status of adolescent girls.
+- Prevention & control of communicable diseases and non-
+communicable/other prevalent diseases.
+In FY 2017-18, 21.51 million was invested towards this
+program covering 137 villages across various locations -
+Halol, Panoli, Ankleswar and Karkhadi in Gujarat, Nagar
+in Maharashtra, Mohali, Toansa in Punjab, Paonta Sahib in
+Himachal Pradesh, Madurantakam in Tamilnadu and Dewas
+and Malanpur in Madhya Pradesh. The total numbers of
+patients treated were 1,18,180 and in addition to this clinical
+treatments 68,788 people also benefitted through various
+Promotive and Preventive healthcare awareness programme
+organized in different villages.
+spent Directly
+• To address problems of unaffordability, inaccessibility and
+non-availability of basic essential healthcare to poor elderly.
+PHARMA
+Dilip S. Shanghvi
+Chairman CSR Committee and
+Managing Director
+Sudhir V. Valia
+Member - CSR Committee and
+Whole-Time Director
+CSR ACTIVITIES
+Sun Pharmaceutical Industries Limited ("Sun Pharma") has engaged
+various stakeholders through CSR Projects and Programmes and
+the main purpose of company's CSR activities is to give back
+to the society by extending helping hand to the needy and the
+underprivileged communities. Health, education, water, livelihood,
+environment and disaster relief are some of our key priorities in the
+area of CSR as a part of CSR Policy of the Company and identified
+community needs.
+The main objective of Sun Pharma's CSR is to emphasize on
+social transformation and ensuring the sustainability, hence our
+implementation approach is strategic in nature, and is more inclined
+towards the sustainability of the projects, addressing community
+needs, focusing poorest of the poor and weaker sections of society.
+Vision:
+Sun Pharma's CSR policy emphasizes on striving to bring about the
+holistic development of underserved communities in a sustainable
+and impactful manner.
+Following CSR Projects and programmes have been implemented
+during financial year 2017-18:
+(1) Mobile Medical Unit:
+In order to provide primary healthcare facilities in peripheral
+villages falling in the vicinity of manufacturing plant locations,
+Sun Pharma has undertaken Mobile Medical Facilities through
+van and other preventive and promotive healthcare awareness
+programmes in villages.
+Mobile Medical Unit, a flagship project related to primary
+health care programme, is being known for catering basic
+healthcare benefits to the targeted beneficiaries at their
+doorstep. It is an outreach service of medical check-up and
+medicine distribution by professionals while on travelling to
+remote villages. A full-time committed health van, visits the
+selected nodal locations at a regular frequency. It is manned by
+a dedicated team of qualified experienced doctor and ANMs,
+who provide medical check-ups, medicines, expert counselling
+and referral services for free of cost.
+• To deliver primary healthcare services to the underserved
+rural areas.
+• To reduce Infant and Maternal Mortality and improve the
+health status of adolescent girls.
+• Prevention & control of communicable and non-
+communicable / other prevalent diseases.
+45
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+• Promote awareness on all health related issues/HIV/AIDS
+and female foeticide.
+or through
+implementing
+agency
+69.41 Implementing
+5
+Samiti, Silvassa
+Rogi Kalyan
+Agency:
+0.40 Implementing
+agency
+spent Directly
+or through
+implementing
+Amount
+(in Million)
+period
+reporting
+upto to the
+expenditure
+Cumulative
+Expenditure
+Overhead
+0.40
+Drinking
+0.40
+Drinking
+0.15
+0.03
+Panoli (Bharuch, Gujarat)
+Environment Environment
+Conservation under Item
+Programme
+7
+under Item
+No.(i)
+Programme
+0.67 Directly
+0.07
+0.07
+Toansa (SBS Nagar, Punjab)
+Healthcare
+6 Healthcare
+Item No. (i)
+Water under
+Water Project
+0.15 Directly
+0.15
+Toansa (SBS Nagar, Punjab)
+- Promote awareness on HIV/AIDS.
+Expenditure)
+(Direct
+No.
+CSR Project
+or Activity
+Sr.
+Amount
+BOARD'S REPORT
+ANNUAL REPORT 2017-18
+Agency:
+GVT-Dahod
+Implementing
+5.31 Directly and
+Implementing
+Agency:
+GVT-Dahod
+8.40 Directly and
+Healthcare
+Society
+Community
+2. Sun Pharma
+India
+1. HelpAge
+Agency:
+Identified
+wise
+Sector in
+which the
+project is
+covered
+Kidney
+Program
+programs
+Project or
+(Budget)
+Outlay
+projects or
+spent on the
+Amount
+No.(i)
+Project
+Silvassa (UT of Dadra & Nagar
+Haveli)
+2. Specify the State and District where
+projects or programs was undertaken
+1. Local Area or other
+Projects or Programs
+under Item
+Dialysis
+Healthcare
+4
+About 7200 beneficiaries of three villages benefited out
+of these medical services that are being provided at the
+Dispensary. Sun Pharma has invested 0.07 million in this
+project during the FY 2017-18.
+(7) Green Belt Development
+Tree plantation is one of the effective measures to control
+problems of air pollution and further to its economic benefits;
+it effectively addresses several important environmental
+and sustainable development objectives. This effort will also
+brighten the surrounding of the community, over and above
+offering ecological benefits. Company has undertaken roadside
+plantation at Panoli with an investment of 0.03 million during
+the FY 2017-18.
+wise
+period
+reporting
+programs
+(Direct
+Program
+Cumulative
+expenditure
+upto to the
+Overhead
+Expenditure
+projects or
+(Budget)
+Amount
+spent on the
+Outlay
+Amount
+Details given below
+Nil
+* 26.97 Million
+years was negative, the Company was not required to spend on CSR
+activities during the previous year. However, the Company has voluntarily
+spent on CSR activities.
+Financial year
+Expenditure)
+Manner in which the amount spent during the
+26.60
+0.40
+40,816.4
+30,143.4
+44,118.1
+24,484.1
+Place: Mumbai
+Date: May 25, 2018
+For and on behalf of the Board of Directors
+Israel Makov
+Chairman
+under Item
+No.(i)
+Medical Unit
+Programme
+Mobile
+1
+Healthcare
+project is
+covered
+Identified
+No.
+or Activity
+Sector in
+which the
+Sr.
+CSR Project
+21.10
+1. Earnings
+2. Outgo
+Amount unspent, if any
+b)
+1.
+No. and nature of
+related party
+Name(s) of the
+Details of material contracts or arrangement or transactions (i.e. exceeding ten percent of the annual consolidated turnover as
+per the last audited financial statements) at arm's length basis
+Sr.
+2.
+Details of contracts or arrangements or transactions not at arm's length basis - NIL
+1.
+Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section
+188 of the Companies Act, 2013 including certain arm's length transactions under third proviso thereto
+(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 ("the Act")
+and Rule 8(2) of the Companies (Accounts) Rules, 2014)
+AOC-2
+ANNEXURE - E
+Mem No. 33697
+C. P. No. 12721
+Date: 25th May 2018.
+Place: Mumbai.
+Chintan J. Goswami
+Proprietor
+For C. J. Goswami & Associates,
+Practicing Company Secretaries
+The Secretarial Audit report is neither an assurance as to
+the future viability of the Company nor of the efficacy or
+effectiveness with which the management has conducted the
+affairs of the Company.
+relationship
+c)
+Sun Pharma
+Laboratories
+Limited (Wholly
+owned subsidiary)
+Purchase of goods, property and
+plant & equipment, Sale of goods,
+property, plant & equipment
+and investments, Dividend
+Income, Receiving and Rendering
+of Service, Reimbursement of
+expenses paid and expenses
+received, Loan taken and repaid,
+Interest expense and Rent income
+Total amount spent for the financial year
+a)
+ANNEXURE - F
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+43
+Israel Makov
+Chairman
+For and on behalf of the Board of Directors
+Date: May 25, 2018
+Place: Mumbai
+Nil
+Amount paid as
+advances, as on
+March 31, 2018
+if any:
+Since these
+transactions are
+in the ordinary
+course of
+business and are
+at arm's length
+basis, approval of
+the Board is not
+applicable.
+Date(s) of approval
+by the Board, if any:
+Salient terms of
+the contracts or
+arrangements or
+transactions including
+the value, if any
+The related party
+transactions entered
+during the year were
+in ordinary course of
+business and on an
+arm's length basis. The
+aggregate amount of
+transactions for the
+financial year 2017-18
+was 74,666.4 million
+On-going
+Duration of
+the contracts/
+arrangements/
+transactions
+Nature of contracts/ arrangements/
+transactions
+We have not verified the correctness and appropriateness of
+financial records and Books of Accounts of the Company.
+Year ended
+March 31, 2017
+C. Foreign Exchange Earnings and Outgo -
+3. Capital investment on energy conservation
+equipments
+•
+Capital investment of 54.8 million is done on energy
+conservation equipments.
+TECHNOLOGY ABSORPTION
+(A) Research and Development
+1.
+Expenditure on R&D -
+(B) Technology Absorption, Adaptation and
+Innovation
+1.
+2.
+Efforts in brief, made towards technology
+absorption, adaptation and innovation
+The company continues to invest on R&D, both as
+revenue expenses as well as capital investments. Part of
+this spending is for complex products, specialty products,
+generic filings for the US, and API technologies that
+are complex and may require dedicated manufacturing
+blocks. Investments have been made in creating research
+sites, employing scientifically skilled and experienced
+manpower, adding equipment, sponsored research and
+in accessing world class consultants to continuously
+upgrade the research understanding of the scientific
+team in the technologies and therapy areas of our
+interest.
+There has been thrust on the development of novel
+technologies like use of green reagents for chemical
+transformations in API synthesis and ultrasonic
+crystallisation for achieving required particle size,
+capillary flow reactors for continuous process and safety
+related studies using reaction calorimetry. Product
+Life Cycle management has been undertaken for key
+products. Backward integration is a key strategic
+objective and many of our products enjoy the benefit of
+this backward integration.
+Process robustness has been implemented for wide
+range of products with the objective to reduce cost and
+increase in process capability.
+Novel compact dosage forms having differentiation
+with regards to improved stability and/or reduced
+pharmacokinetic variability have been developed for the
+Indian market. Stable liquid oral formulations of labile
+products are also being developed.
+Benefits derived as a result of the above efforts
+e.g. product improvement, cost reduction, product
+development, import substitution
+(in Million)
+In following factories biomass briquettes are used instead
+of conventional fuel (FO/HSD) - Ahmednagar, Panoli,
+Mohali, Silvassa, Dadra, Karkhadi, Dewas, MKM Chennai,
+Paonta Sahib. In MKM Chennai - Partially power is used
+from the wind mills.
+(a)
+2. Steps taken by the Company for utilising
+alternate sources of energy
+•
+46
+ANNUAL REPORT 2017-18
+BOARD'S REPORT
+ANNEXURE - G
+PARTICULARS OF ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
+EARNINGS AND OUTGO REQUIRED UNDER THE COMPANIES (ACCOUNTS) RULES, 2014
+A.
+B
+CONSERVATION OF ENERGY
+1. Steps taken or impact on Conservation of
+Energy
+• Install & use of energy efficient screw air compressor
+instead of reciprocating compressor.
+⚫ Electricity usages are reduced by confined control on
+lightings by applying motion sensors.
+• Improve boiler system efficiency by improving
+condensate recovery, recovering flash steam and
+repairing non operative steam traps
+• Lightings load reduction by installation of LED lightings.
+• Opt TOD base electricity bill option to get benefit in
+electricity bill.
+• Maintain Power Factor near to unity & reduced contract
+demand.
+• Install VFD on AHUS blowers to reduce power
+requirement
+• Install energy efficiency pumps and blowers.
+Energy saving in chillers by maintaining proper water
+treatment & cleaning frequency.
+Year ended
+March 31, 2018
+Year ended
+March 31, 2017
+Offers complete baskets of products under chronic
+therapeutic classes. Many products are in the
+pipeline for future introduction in India, emerging
+to challenge patents in the US market, and earn
+exclusivity.
+Not dependent on imported technology, can make
+high-end products available at competitive prices
+by using indigenously developed manufacturing
+processes and formulation technologies.
+47
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+48
+(c)
+Offers technologically advanced differentiated products
+which are convenient and safe for administration to
+patients.
+3.
+Your company has not imported technology during the
+last 5 years reckoned from the beginning of the financial
+year.
+(d)
+(e)
+(f)
+We are among the few selected companies that have
+set up completely integrated manufacturing capability
+for the production of anticancer, hormones, peptide,
+immunosuppressant and steroidal drugs.
+The Company has benefited from reduction in cost due
+to import substitution and increased revenue through
+higher exports.
+Clinical studies of some products (complex and difficult
+to formulate) have been carried out at our in-house
+clinical pharmacology units. This has helped to maintain
+R&D quality and regulatory compliance with significantly
+reduced cost.
+market. The company has developed an ability
+1,392.3
+markets, as well as US and European generic
+(b)
+Year ended
+March 31, 2018
+a) Capital
+1,591.0
+b)
+Revenue
+8,261.0
+9,038.0
+c)
+Total
+9,852.0
+10,430.3
+d)
+Total R&D
+12.4%
+13.4%
+expenditure as %
+of Total Turnover
+The Programme is being implemented with the help of partner
+organization namely "Sun Pharma Community Healthcare
+Society" and "HelpAge India" and it aims to address the
+following health related issues:-
+Mr. Israel Makov
+535
+Yes
+1
+Yes
+555
+5
+5
+5
+4
+-
+Other
+Last AGM held
+on September
+26, 2017
+Yes
+5
+5
+attended
+to attend
+Attendance Particulars for the
+year ended March 31, 2018
+Number of
+Board Meetings
+*No. of other Directorships and Committee
+Memberships / Chairmanships as of March 31, 2018
+Committee
+Committee
+Directorships Memberships** Chairmanships**
+Number of Board
+Meetings Entitled
+3
+2
+4
+4
+9
+No#
+1
+2
+Yes
+Yes
+423524
+5
+5
+5
+1
+Yes
+4
+5
+5
+Mr. Hasmukh S. Shah
+Mr. Vivek Chaand Sehgal
+Ms. Rekha Sethi
+Mr. Gautam Doshi**
+Mr. Vivek Chaand Sehgal*
+Ms. Rekha Sethi
+Mr. Ashwin S. Dani
+Mr. Keki M. Mistry
+Mr. S. Mohanchand Dadha
+(Whole-time Director)
+Inter-se Relationship between Directors
+Mr. Kalyanasundaram Subramanian
+Mr. Sailesh T. Desai
+Mr. Dilip S. Shanghvi
+(Managing Director)
+Mr. Sudhir V. Valia
+(Whole-time Director)
+Mr. Israel Makov (Chairman)
+The present strength of the Board of Directors of your
+Company is eleven Directors.
+BOARD OF DIRECTORS
+Sun Pharmaceutical Industries Limited is committed to learn
+and adopt the best practices of Corporate Governance.
+also a way of life at the Company. These values form a base
+of the Corporate Governance practices of the Company.
+The Company ensures to work by these principles in all
+its interactions with stakeholders, including shareholders,
+employees, customers, suppliers and statutory authorities.
+(Whole-time Director)
+Brother-in-law of Mr. Sudhir V. Valia
+Brother-in-law of Mr. Dilip S. Shanghvi
+*Mr. Vivek Chaand Sehgal was appointed as an Additional Independent Director of the Company with effect from November 14, 2017.
+Mr. Ashwin S. Dani
+Mr. Keki M. Mistry
+Mr. S. Mohanchand Dadha
+Mr. Kalyanasundaram Subramanian
+Mr. Sailesh T. Desai
+Mr. Sudhir V. Valia
+Mr. Dilip S. Shanghvi
+Mr. Israel Makov
+Name of the Director
+Number of Board meetings the Director was entitled to attend, attendance of each Director at the Board meetings and at the last Annual
+General Meeting (AGM), and number of other Directorships and Chairmanships/Memberships of Committee of each Director for the year
+under review, is given below:
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+49
+May 26, 2017; August 11, 2017; September 26, 2017; November 14, 2017 and February 14, 2018.
+Number of Board Meetings held during the year ended March 31, 2018 and the dates on which held:
+Five Board meetings were held during the year. The dates on which the meetings were held during the year ended March 31, 2018 are as
+follows:
+Mr. Hasmukh S. Shah who was a Non-Executive and Independent Director of the Company resigned as Director with effect from November
+15, 2017
+** Mr. Gautam Doshi was appointed as an Additional Independent Director of the Company with effect from May 25, 2018.
+No
+5
+2
+1
+1
+Ms. Rekha Sethi
+Four meetings of Nomination and Remuneration Committee
+were held during the year ended March 31, 2018. The dates on
+which the meetings were held are as follows:
+3
+5
+Mr. Ashwin S. Dani
+4
+1
+4
+4
+5
+Mr. S. Mohanchand Dadha
+3
+Mr. Kalsundaram Subramanian#
+5
+Mr. Keki M. Mistry
+Mr. Hasmukh S. Shah
+5. NOMINATION AND REMUNERATION
+COMMITTEE
+The Nomination and Remuneration Committee presently
+comprises of four Non-executive Directors viz. Mr. Keki
+M. Mistry, Mr. Israel Makov, Ms. Rekha Sethi and Mr. S.
+Mohanchand Dadha. Mr. Keki M. Mistry is the Chairman of the
+Committee. Mr. S. Mohanchand Dadha has been appointed
+as the member of the Committee with effect from May 25,
+2018. During the year Mr. Hasmukh S. Shah was appointed
+as the member of the Committee with effect from June 13,
+2017, however he ceased to be the member of the Committee
+with effect from November 15, 2017 due to he ceasing to be
+the Director of the Company with effect from November 15,
+2017. The constitution of the Nomination and Remuneration
+Committee meets with the requirements of Section 178 of the
+Companies Act, 2013 as also the requirements laid down in
+Regulation 19 of the Listing Regulations. Mr. Sunil R. Ajmera,
+the Company Secretary of the Company is the Secretary of the
+Committee.
+The terms of reference of the Nomination and Remuneration
+Committee inter alia include; to determine the Company's
+policy on specific remuneration packages for executive
+directors, to review, recommend and/or approve remuneration
+to Whole-time Directors, to review and approve the
+Remuneration Policy of the Company, to formulate criteria for
+evaluation of Independent Directors and the Board, to devise a
+policy on Board Diversity, to identify persons who are qualified
+to become directors and who may be appointed in senior
+6. REMUNERATION OF DIRECTORS
+The Remuneration Policy for Directors, Key Managerial
+Personnel and other employees of the Company has been
+annexed as Annexure 'B' to the Corporate Governance Report.
+2
+4
+4
+2
+Meetings attended
+Committee
+Number of
+Nomination and
+Remuneration
+4
+2
+4
+4
+Number of
+Nomination and
+Remuneration
+Committee Meetings
+entitled to attend
+Mr. Hasmukh S. Shah
+Mr. Keki M. Mistry
+Mr. Israel Makov
+Ms. Rekha Sethi
+Name of the Director
+May 26, 2017; August 11, 2017; November 14, 2017 and
+February 14, 2018. The attendance of each Member of the
+Committee is given below:
+attend
+2.
+attended
+Meetings
+The Board of Directors has laid down a Global Code of
+Conduct for all Board members, and all employees, including
+the senior management of the Company. All the Directors and
+senior management have affirmed compliance with the Global
+Code of Conduct as approved and adopted by the Board
+of Directors and a declaration to this effect signed by the
+Managing Director has been annexed as Annexure 'A' to the
+Corporate Governance Report. The code of conduct has been
+posted on the website of the Company www.sunpharma.com.
+4.
+3. CODE OF CONDUCT
+# Mr. Keki M. Mistry, Chairman of the Audit Committee and Nomination and Remuneration Committee could not attend the last Annual General Meeting of
+the Company due to his prior commitments. However, he appointed Mr. Hasmukh S. Shah, member of the Audit Committee and Nomination & Remuneration
+Committee to answer to the shareholders' queries on his behalf at the Annual General Meeting.
+*** He was not a Director on 31st March, 2018
+** The Committee Memberships and Chairmanships in other Companies include Memberships and Chairmanships of Audit and Stakeholders' Relationship
+Committee only.
+*The above number of other directorships does not include Directorships, Committee Memberships and Committee Chairmanships in Private Limited, Foreign
+and Section 8 Companies.
+AUDIT COMMITTEE
+Not Applicable***
+Yes
+5
+2 Not Applicable
+1
+1
+4
+Yes
+2
+4
+The Audit Committee of the Company presently comprises of
+six Directors which include five independent non-executive
+Directors viz. Mr. Keki M. Mistry, Mr. S. Mohanchand Dadha,
+Mr. Ashwin S. Dani, Ms. Rekha Sethi, Mr. Gautam Doshi and
+one Whole-time Director viz. Mr. Sailesh T. Desai. Mr. Keki
+M. Mistry is the Chairman of the Committee. Ms. Rekha Sethi
+was appointed as the member of the Audit Committee with
+effect from November 14, 2017. Mr. Sailesh T. Desai and
+Mr. Gautam Doshi have been appointed as members of the
+Audit Committee with effect from May 25, 2018. During the
+year, Mr. Hasmukh S. Shah, Independent Director, who was
+a member of the Audit Committee, ceased to be member of
+the committee with effect from November 15, 2017 due to he
+ceasing to be the Director of the Company with effect from
+November 15, 2017. The constitution of Audit Committee
+meets with the requirements as laid down under Section
+177 of the Companies Act, 2013 and also of Regulation 18
+of the Listing Regulations. Mr. Sunil R. Ajmera, the Company
+Secretary of the Company is the Secretary of the Audit
+Committee.
+The terms of reference of the Audit Committee inter alia
+include: overseeing the Company's financial reporting
+process, reviewing the quarterly/half-yearly/annual financial
+statements, reviewing with the management the financial
+statements and adequacy of internal audit function,
+recommending the appointment/re-appointment of statutory
+auditors and fixation of audit fees, reviewing the significant
+internal audit findings/related party transactions, reviewing the
+Management Discussion and Analysis of financial condition,
+and result of operations, scrutiny of inter-corporate loans
+and investments, review of internal financial control and
+risk management, review functioning of Whistle Blower/
+Vigil Mechanism, approval of appointment of Chief Financial
+Officer, and also statutory compliance relating to financial
+statements, review and monitor the auditor's independence
+and performance and effectiveness of audit process etc.
+The Committee acts as a link between the management,
+external and internal auditors and the Board of Directors of the
+Company.
+The Nomination and Remuneration Committee has adopted
+the criteria as provided in the Guidance Note on Board
+Evaluation by Securities and Exchange Board of India vide its
+notification no. SEBI/HO/CFD/CMD/CIR/P2017/004 dated
+January 5, 2017 for evaluation of the Individual Directors
+including Independent Directors. The said criteria provides
+certain parameters like knowledge, competency, fulfillment
+of functions, availability and attendance, initiative, integrity,
+contribution, independence and independent views and
+judgment.
+management in accordance with the criteria laid down and
+recommend to the Board the appointment or removal of such
+persons and to discharge such other functions and exercise
+such other powers as may be delegated/ directed by the Board
+of Directors from time to time.
+Number
+of Audit
+Committee
+Meetings
+Committee
+of Audit
+Number
+Name of the Director
+May 26, 2017; August 4, 2017; August 11, 2017; November
+14, 2017; and February 14, 2018. The attendance of each
+Member of the Committee is given below:
+Five Audit Committee Meetings were held during the year
+ended March 31, 2018. The dates on which the Meetings were
+held are as follows:
+Regulations, 2015 and the provisions of Section 177 of the
+Companies Act, 2013.
+CORPORATE GOVERNANCE
+ANNUAL REPORT 2017-18
+50
+In addition, the Committee has discharged such other role/
+function as envisaged under Regulation 18 of the Listing
+The Committee has discussed with the Statutory and Internal
+auditors about their audit methodology, audit planning and
+significant observations/suggestions made by them.
+Executives from the Finance Department, representatives of
+the Statutory Auditors and Internal Auditors are also invited to
+attend the Audit Committee Meetings, whenever necessary.
+entitled to
+The remuneration of the Managing Director and Whole-time
+Director(s) is approved by the Board, as per recommendation
+of the Nomination and Remuneration Committee within the
+overall limit fixed by the shareholders at their meetings.
+Name of the Directors
+Non-Promoter Executive Directors
+9,621
+9,521
+300
+9000
+9,304
+200
+8500
+9500
+100
+8000
+"}}}) } } } } }
+Jul-17
+NSE Nifty (Closing)
+Jan-18
+Closing Price of Sun Pharma's Shares on NSE
+40000
+0
+700
+400
+495
+10,335
+10500
+571
+10,114
+556
+532
+600
+9,789
+502
+10000
+580
+10,227
+500
+540
+535
+10,077
+9,918
+481
+643
+35965
+34057
+503
+480
+495
+400
+20000
+300
+15000
+501
+200
+5000
+100
+0
+1 7 7 ) 1 1 1 1
+BSE Sensex (Closing)
+Closing Price of Sun Pharma's Shares on BSE
+58
+10000
+25000
+540
+532
+34184
+35000
+32515
+33213
+33149
+31146 30922
+31730
+32969
+31284
+600
+30000
+571
+579
+555
+553
+500
+29918
+700
+10,493
+10,531
+642
+Month's High Price
+Month's Low Price
+700.50
+632.15
+699.85
+632.05
+657.95
+Month's Low Price
+493.00
+492.65
+559.90
+503.00
+560.95
+502.10
+590.75
+530.00
+656.95
+Month's High Price
+National Stock Exchange of India Ltd.
+(NSE) (in )
+BSE Ltd. (BSE) (in )
+Executive Director
+Promoter
+Non - Independent Director
+Executive and
+Non
+Non-Promoter
+Category of Directors
+Composition and category of Directors is as follows:
+Sun Pharmaceutical Industries Limited's philosophy envisages
+reaching people touching lives globally by following the core
+values of the Company viz Quality, Reliability, Consistency,
+Trust, Humility, Integrity, Passion and Innovation which are
+COMPANY'S PHILOSOPHY ON CODE OF
+CORPORATE GOVERNANCE
+1.
+In compliance with Regulation 34(3) read with Schedule V of the
+Securities and Exchange Board of India (Listing Obligations and
+Disclosure Requirements) Regulations, 2015 ("Listing Regulations"),
+the Company submits the Corporate Governance Report for the year
+ended 31st March, 2018.
+CORPORATE GOVERNANCE
+Corporate Governance
+ANNUAL REPORT 2017-18
+March, 2018
+(Source: BSE and NSE website)
+591.50
+Non-Executive Independent Directors
+528.90
+433.15
+560.10
+608.55
+511.45
+608.95
+511.30
+562.00
+493.00
+604.60
+563.00
+15.8 Share price performance in comparison to broad-based indices - BSE Sensex and NSE Nifty.
+11500
+900
+11,028
+763
+800
+11000
+492.00
+560.80
+604.50
+499.50
+541.90
+432.70
+529.70
+466.85
+529.40
+466.20
+558.75
+500.20
+558.70
+500.15
+572.40
+498.60
+572.30
+498.20
+590.00
+500.35
+585.60
+542.00
+The Non-Executive Directors of the Company are entitled to
+commission, if and to the extent approved by the Board, of
+upto 1% as approved by the members, in addition to the sitting
+fees of 100,000/- payable to the Non-Executive Directors
+for attending each meeting of the Board and/or of Committee
+thereof. No commission was paid to Non-Executive Directors
+for the year 2017-18.
+632
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+4
+4
+4
+The total numbers of complaints received and resolved to the
+satisfaction of shareholders, during the year under review were
+3. There were no complaints pending at the beginning or at the
+end of the year.
+COMMITTEE OF DIRECTORS (ALLOTMENT)
+The Committee of Directors (Allotment) presently comprises
+of four Directors viz. Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia,
+Mr. Sailesh T. Desai and Mr. S. Mohanchand Dadha. Mr. Sudhir
+V. Valia is the Chairman of the Committee and Mr. Sunil R.
+Ajmera, Company Secretary is the Secretary of the Committee.
+Mr. Hasmukh S. Shah ceased to be member of the Committee
+with effect from November 15, 2017 due to he ceasing to be a
+Director of the Company with effect from November 15, 2017.
+Five meetings of the Committee of Directors (Allotment) were
+held during the year ended March 31, 2018. The dates on
+which Meetings were held are as follows:
+53
+4
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+May 26, 2017; August 11, 2017; September 26, 2017;
+November 14, 2017 and February 14, 2018. The attendance of
+each Member of the Committee is given below.
+Name of the Director
+Mr. Sudhir V. Valia
+Mr. Hasmukh S. Shah
+Mr. Sailesh T. Desai
+Mr. S. Mohanchand
+Dadha
+Mr. Dilip S. Shanghvi
+Number of
+Committee of
+Directors (Allotment)
+Meetings entitled to
+PHARMA
+Number of
+Committee
+3
+Meetings attended
+Nil
+Committee Meetings
+entitled to attend
+Nil
+Mr. Hasmukh S. Shah
+Mr. S. Mohanchand
+Dadha
+3
+4
+3
+Mr. Gautam Doshi who has been appointed as Additional Independent
+Director of the Company on May 25, 2018 holds 8000 shares of the
+Company as on the date of his appointment.
+The terms of reference of the Committee inter alia includes the
+following: To look into redressal of grievances of shareholders,
+8.
+Mr. Sudhir V. Valia
+Mr. Dilip S. Shanghvi
+Investor Complaints:
+Number of
+Stakeholders'
+Relationship
+Committee
+7. STAKEHOLDERS' RELATIONSHIP COMMITTEE
+The Stakeholders' Relationship Committee presently comprises
+of three Directors viz. Mr. S. Mohanchand Dadha, Mr. Dilip S.
+Shanghvi, Mr. Sudhir V. Valia with Mr. S. Mohanchand Dadha
+as the Chairman. During the year Mr. S. Mohanchand Dadha,
+member of committee was appointed as the Chairman with
+effect from November 15, 2017. Mr. Hasmukh S. Shah ceased
+to be member and Chairman of the Committee with effect
+from November 15, 2017 due to he ceasing to be a Director
+of the Company with effect from November 15, 2017. The
+constitution of the Stakeholders' Relationship Committee
+meets with the requirements of Section 178 of the Companies
+Act, 2013 and also of Regulation 20 of the Listing Regulations.
+Mr. Sunil R. Ajmera, the Company Secretary of the Company
+is the Secretary of the Committee. The Board of Directors has
+delegated the power of approving transfer of securities to M/s.
+Link Intime India Pvt. Ltd, and/or the Company Secretary of the
+Company.
+of Directors
+(Allotment)
+attend
+Meetings attended
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Mr. Uday Baldota
+Mr. CS Muralidharan
+Number of Risk
+Management
+Committee Meetings
+entitled to attend
+11. SUBSIDIARY COMPANIES
+Number of Risk
+Management
+Committee
+Meetings attended
+2
+Name of the Director
+2
+2
+1
+1
+1
+1
+In accordance with Regulation 16 of the Listing Regulations,
+Sun Pharma Laboratories Limited is a material Indian subsidiary
+company (whose Debt Securities are listed on BSE) whose
+turnover or net worth (i.e., paid-up capital and free reserves)
+exceeds 20% of the consolidated turnover or net worth
+respectively, of the Company and its subsidiaries in the
+immediately preceding accounting year.
+Mr. S. Mohanchand Dadha, and Ms. Rekha Sethi, Independent
+Directors of the Company are also Directors on the Board of
+Sun Pharma Laboratories Limited.
+2
+During the year ended March 31, 2018, two meetings of
+Risk Management Committee were held on May 25, 2017
+and November 13, 2017. The attendance of each member of
+committee is as follows:
+and Mr. C. S. Muralidharan, Chief Financial Officer of the
+Company. The Chairman of the Committee is Mr. Dilip S.
+Shanghvi. Mr. Uday Baldota, the earlier Chief Financial
+Officer of the Company, who was also a member of the
+Committee ceased to be a member of the Committee with
+effect from June 19, 2017 due to he ceasing to be the Chief
+Financial Officer of the Company with effect from June 19,
+2017. Mr. C. S. Muralidharan, who was appointed as the
+Chief Financial Officer of the Company with effect from June
+19, 2017, was appointed as a member of the Committee with
+effect from that date. The constitution of the Committee
+meets the requirements of Regulation 21 of the Listing
+Regulations. The terms of reference of the committee inter
+alia include: to formulate and recommend to the Board
+a Risk Management Plan/Policy, to implement, monitor
+and review the risk management plan for the Company, to
+recommend and implement procedures for risk assessment
+and minimization, to monitor the Risk Management Policy
+of the Company from time to time, to discharge such
+other functions and exercise such other powers as may be
+delegated/ directed by the Board of Directors from time
+to time. Mr. Sunil R. Ajmera, the Company Secretary of the
+Company is the Secretary of the Committee.
+Number of
+Corporate Social
+Responsibility
+Committee
+5
+5
+4
+4
+5
+5
+5
+4
+5
+The Committee of Directors (Allotment) inter-alia has the
+following powers: To allot shares pursuant to ESOP Schemes
+and to issue the equity share certificates to the shareholders
+holding the shares in physical form, to perform any or all of
+the acts, deeds, things and matters as may be required in
+connection with such issue, allotment and Listing of
+Equity Shares.
+9. CORPORATE SOCIAL RESPONSIBILITY
+COMMITTEE
+5
+The Corporate Social Responsibility Committee presently
+comprises of three Directors viz. Mr. Sudhir V. Valia, Ms. Rekha
+Sethi and Mr. Dilip S. Shanghvi with Mr. Dilip S. Shanghvi
+as the Chairman. The constitution of the Corporate Social
+Responsibility Committee meets the requirements of section
+135 of the Companies Act, 2013. Mr. Sunil R. Ajmera, the
+Company Secretary of the Company is the Secretary of the
+Committee. The terms of reference of the Corporate Social
+Responsibility Committee include to formulate and recommend
+to the Board, a Corporate Social Responsibility Policy, to
+monitor the Corporate Social Responsibility Policy of the
+Company from time to time, to recommend the amount of
+expenditure to be incurred on the activities, to monitor amount
+spent on the CSR initiatives of the Company as per the CSR
+policy, to discharge such other functions and exercise such
+other powers as may be delegated/ directed by the Board of
+Directors from time to time. The contents of the CSR Policy
+of the Company can be accessed through the web link:
+http://www.sunpharma.com/policies.
+During the year ended March 31, 2018, two meetings of
+Corporate Social Responsibility Committee were held on
+May 25, 2017 and August 10, 2017. The attendance of each
+member of Committee is as follows:
+Name of the Director
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Ms. Rekha Sethi
+Number of
+Corporate Social
+Responsibility
+Committee Meetings
+entitled to attend
+Number of
+Stakeholders'
+Relationship
+Name of the Director
+Nil
+43,270
+1,42,89,015
+9,00,000
+9,00,000
+16,00,000
+16,00,000
+17,00,000
+17,00,000
+24,48,615
+8,00,000
+7,00,000
+7,00,000
+13,00,000
+13,00,000
+3,00,000
+3,00,000
+from November 14, 2017)
+8,00,000
+19,73,400
+3,36,08,800
+56,18,800
+51
+Mr. S. Mohanchand Dadha
+Mr. Hasmukh S. Shah (upto November 15, 2017)
+Mr. Keki M. Mistry
+Mr. Ashwin S. Dani
+Ms. Rekha Sethi
+Mr. Vivek Chaand Sehgal (appointed with effect
+(Amount in)
+Actual Remuneration/Sitting Fees Paid for 2017-18
+Salary*
+Bonus**
+Perquisites***/
+Benefits
+Sitting Fees
+Total Paid
+2,79,90,000
+2,79,90,000
+98,67,000
+56,18,800
+3,36,08,800
+*Salary includes Special Allowance.
+The financial statements including investments made by the
+unlisted subsidiaries were placed before and reviewed by the
+Audit Committee of the Company.
+** Bonus has not been paid to Mr. Dilip S. Shanghvi and Mr. Sudhir V. Valia due to loss incurred by the Company on standalone basis.
+#Mr. Kalyansundaram Subramanian does not receive any remuneration as a Whole-time Director of the Company. However, Mr. Kalayanasundaram
+Subramanian is also the Whole-Time Director & Chief Executive Officer of Sun Pharma Laboratories Limited, Wholly-Owned Subsidiary of the
+Company, and he receives remuneration from Sun Pharma Laboratories Limited.
+The remuneration of Whole-time Directors consists only of
+fixed components.
+The details of Equity Shares held by Non-Executive Directors
+as on March 31, 2018:
+Director
+Mr. Israel Makov
+No. of Equity Shares
+held (held singly or
+jointly as first holder)
+debenture holders and other security holders of the Company,
+to consider and resolve grievances of the security holders
+of the Company including complaints related to transfer of
+shares, non-receipt of balance sheet, non-receipt of declared
+dividends, etc, to approve issue of duplicate share certificates
+and to oversee and review all matters connected with the
+transfer, transmission and issue of securities, to oversee
+the performance of the Registrar and Transfer Agents and
+recommend measures for overall improvement in the quality of
+investor services, to investigate any activity within its terms of
+reference, to seek information from share transfer agents, to
+obtain outside legal or other professional advice and to secure
+attendance of outsiders with relevant expertise, if it considers
+necessary and have full access to the information contained in
+the records of the Company.
+The Board has designated severally, Mr. Sunil R. Ajmera,
+Company Secretary and Mr. Ashok I. Bhuta, Sr. G.M -
+Secretarial as Compliance Officers for the purposes of/under
+rules, regulations etc. issued by the Securities Exchange Board
+of India, Stock Exchanges, and Companies Act, 2013.
+There is no separate provision for payment of severance fees
+to Whole-time Director(s).
+Four meetings of the Stakeholders' Relationship Committee
+were held during the year ended March 31, 2018. The dates on
+which Meetings were held are as follows:
+Mr. S. Mohanchand Dadha
+Mr. Keki M. Mistry
+Mr. Ashwin S. Dani
+Ms. Rekha Sethi
+Mr. Vivek Chaand Sehgal
+Nil
+Nil
+May 26, 2017; August 11, 2017; November 14, 2017 and
+February 14, 2018. The attendance of each Member of the
+Committee is given below:
+The Company had formulated two Schemes for grant of
+stock options to the eligible employees of erstwhile Ranbaxy
+Laboratories Ltd., pursuant to the Scheme of Arrangement for
+merger of Ranbaxy Laboratories Ltd., into the Company. None
+of the Directors are entitled to stock options.
+The Agreement with Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia
+and Mr. Sailesh T. Desai, the Executive Directors for their
+present term are for a period of 5 years as follows; i) from April
+1, 2018 to March 31, 2023 for Mr. Dilip S. Shanghvi and ii) from
+April 1, 2014 to March 31, 2019 for Mr. Sudhir V. Valia and
+Mr. Sailesh T. Desai. The agreement with Mr. Kalyansundaram
+Subramanian, Whole-time Director, is for a period of 2 years
+with effect from February 14, 2017 to February 13, 2019. Either
+party to the agreement is entitled to terminate the Agreement
+by giving to the other party 30 days' notice in writing.
+e)
+Besides this, all the Whole-time Directors to whom remuneration is paid are also entitled to encashment of leave as per Company
+policy, and gratuity at the end of tenure, as per the rules of the Company.
+Due to inadequacy of profits, the Company paid remuneration for the financial year 2017-18 to Mr. Dilip S. Shanghvi, Managing
+Director and Mr. Sudhir V. Valia, Whole-time Director upto the ceiling limit calculated as per Schedule V of the Companies Act, 2013,
+which is less than the remuneration approved by the Board of Directors. During the year, the Company has applied to Ministry of
+Corporate Affairs (MCA) during the year for approval of remuneration for the year 2017-18 for Mr. Dilip S. Shanghvi, Managing Director
+and Mr. Sudhir V. Valia, Whole-time Director, as approved by the Board of Directors within the limit approved by the members, the
+approval for which is awaited. In view of the approval for application of remuneration being awaited, for the year 2017-2018, the
+Company has paid remuneration within the ceiling limit of 3.04 crores, as calculated as per Schedule V of the Companies Act, 2013 as
+mentioned below, to Mr. Dilip S. Shanghvi, Managing Director and Mr. Sudhir V. Valia, Whole-time Director. On receipt of the approval
+from the Central Government of India, the balance amount of remuneration of Mr. Dilip S. Shanghvi, Managing Director and Mr. Sudhir
+V. Valia, Whole-time Director for the year 2017-18, if any, as per their entitlement, shall be paid to them and the same shall be given
+effect to in the year in which the approval is received.
+The details of remuneration that Mr. Dilip S. Shanghvi, Managing Director and Mr. Sudhir V. Valia, Whole-time Director are entitled and
+the remuneration actually paid to them are explained below:
+Directors
+Mr. Dilip S. Shanghvi*
+Mr. Sudhir V. Valia
+Amount of remuneration entitled
+(including contribution to PF) for the
+year 2017-2018, as approved by the
+Board within the limit as approved by
+the members, subject to approval of the
+Central Govt. (excluding Perquisites such
+as reimbursement of electricity charges,
+motor vehicle charges, etc. which shall be
+taken at actuals)
+3,92,93,367
+3,92,93,367
+Actual Amount Paid out
+of the amount entitled
+for the year 2017-2018
+(including contribution to
+P.F. and Perquisites such as
+reimbursement of electricity
+charges, motor vehicle charges,
+etc. at actuals)
+3,36,08,800
+3,36,08,800
+Amount of Remuneration
+paid for 2017-2018, after
+excluding Contribution
+to PF which is excluded
+for calculation of limit
+as per Schedule V of the
+Companies Act 2013
+3,02,50,000
+3,02,50,000
+* Commission to Managing Director: Managing Director is also entitled to commission subject to availability of profit and at the rate of not more than
+1% of the net profit for the year, the Board of Directors will determine the commission payable within the overall ceiling laid as per the Act, as may be
+applicable from time to time. However no commission has been paid to the Managing Director for the year 2017-18.
+ANNUAL REPORT 2017-18
+CORPORATE GOVERNANCE
+Notes:-
+a)
+b)
+*** Perquisites include House Rent Allowance, Leave Travel Assistance, Medical Reimbursement, contribution to Provident Fund and such other perquisites,
+payable to Directors, as per Company Policy.
+Meetings attended
+d)
+2
+• Details of the familiarization programme of the independent
+directors are available on the website of the Company at:
+http://www.sunpharma.com/policies
+•
+During the year, a separate meeting of the independent
+directors was held on February 14, 2018 inter-alia to review
+the performance of non-independent directors and the board
+as a whole.
+• The policy on dealing with the related party transactions
+is available on the website of the Company and can be
+accessed at: http://www.sunpharma.com/policies.
+• During the year, there were transactions of receiving of
+services from Makov Associates Limited amounting to
+* 136.96 Million in which Mr. Israel Makov, Non-Executive
+and Non-Independent Chairman is interested. Also there
+were transactions for sale of goods to Dadha Pharma
+Distribution Pvt Ltd, amounting to 2.61 Million in which
+Mr. S. Mohanchand Dadha, Non-Executive and Independent
+Director is interested and for purchase of intangible assets
+from MothersonSumi INfotech & Designs Limited amounting
+to 17.43 Million in which Mr. Vivek Chaand Sehgal,
+Non-Executive and Independent Director is interested. All
+the transactions with entities in which the Independent
+56
+ANNUAL REPORT 2017-18
+CORPORATE GOVERNANCE
+Directors are interested constitute less that one percent of
+the revenues of these entities and negligible percent of the
+revenue of the Company.
+Apart from the above and sitting fees, there are no pecuniary
+transactions with Non Executive directors of the Company
+which had potential conflict of interest with the Company.
+• Details of compliance and Adoption/Non Adoption of the
+non-mandatory requirements for the year ended March
+31, 2018:
+(i) The Company complies with all the mandatory
+requirements specified under Listing Regulations.
+(ii) The Chairman of the Company is a Non-Executive
+Director. The Company has provided a separate office for
+the Chairman at the corporate office of the Company and
+the Chairman is also allowed reimbursement of expenses
+incurred in performance of his duties.
+(iii) The Company sends quarterly results alongwith summary
+of significant events to the shareholders whose e-mail
+IDs are available with the Company.
+(iv) The auditors have issued an unmodified opinion of the
+financial statements of the Company.
+(v) The Company has separate position for Chairman and
+Managing Director
+(vi) The Internal Auditor reports their findings to the Audit
+Committee of the Company.
+14. MEANS OF COMMUNICATION
+• Website: The Company's website www.sunpharma.com
+contains a separate dedicated section 'INVESTORS' where
+shareholders' information is available. The full and Abridged
+Annual Report for the financial year 2017-18 and full Annual
+Report for the past years are also available on the website
+in a user friendly and downloadable form. Apart from this,
+official news releases, detailed presentations made to media,
+analysts etc., and the transcript of the conference calls are
+also displayed on the Company's website.
+• Financial Results: The annual, half-yearly and quarterly
+results are regularly posted by the Company on its website
+www.sunpharma.com and are also sent to the shareholders
+whose e-mail IDs are registered with the Company. These
+are also submitted to the Stock Exchanges on which the
+securities of the Company are listed in accordance with the
+requirements of the Listing Regulations and published in all
+English Editions of "Financial Express' and Gujarati Edition of
+'Financial Express' which is published in Ahmedabad.
+investigate the complaints with an investigating committee.
+The final decision would be taken by the Ombudsperson in
+consultation with the Management and the Audit Committee.
+The Policy is expected to help to draw the Company's
+attention to unethical, inappropriate or incompetent conduct
+which has or may have detrimental effects either for the
+organisation or for those affected by its functions. The details
+of establishment of vigil mechanism are available on the
+website of the Company. No personnel have been denied
+access to the Audit Committee.
+50,332
+• The Board of Directors of the Company has approved a
+Whistle Blower Policy/Vigil Mechanism to monitor the
+actions taken on complaints received under the said policy.
+This policy also outlines the reporting procedure and
+investigation mechanism to be followed in case an employee
+blows the whistle for any wrong-doing in the Company.
+Employees are given protection in two important areas
+- confidentiality and against retaliation. It is ensured that
+employees can raise concerns regarding any violation or
+potential violation easily and free of any fear of retaliation,
+provided they have raised the concern in good faith.
+An Ombudsperson/s has been appointed to receive the
+complaints through a portal or email or letters who would
+• The Company has laid down procedures to inform Board
+members about the risk assessment and its minimization,
+which is periodically reviewed to ensure that risk control is
+exercised by the management effectively.
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+Resolution Passed Through Postal Ballot:
+During the year, as directed by the National Company Law Tribunal
+(NCLT), the Company provided the facility for voting by way of
+Postal Ballot for the approval of the Scheme of Arrangement among
+Sun Pharma Medisales Pvt Ltd., Ranbaxy Drugs Ltd., Gufic Pharma
+Ltd., and Sun Pharmaceutical Industries Ltd., and their respective
+shareholders and creditors vide Notice dated April 26, 2017 for
+convening the meeting of the Equity Shareholders.
+The Notice of NCLT meeting dated April 26, 2017 along with the
+Postal Ballot Form was sent in electronic form to the members
+whose e-mail addresses were registered with the Company /
+respective Depository Participants. In case of physical shareholding,
+copies of the aforementioned Notice along with Postal Ballot Form
+were sent in physical, by permitted mode along with self-addressed
+postage pre-paid Business Reply Envelope. The Company had
+published a notice in the newspaper on May 18, 2017 in Financial
+Voting Results of Postal Ballot:
+Express and Vadodara Samachar in compliance with the provisions
+of the Companies Act, 2013 and Secretarial Standard - 2. The
+voting period commenced from Sunday, May 21, 2017 at 9:00 a.m.
+(IST) and ended on Monday, June 19, 2017 at 5:00 p.m. (IST). The
+voting rights of members were reckoned on the paid-up value of
+shares registered in the name of member / beneficial owner (in
+case of electronic shareholding) as on Friday, March 31, 2017. The
+Board had appointed M/s C. J. Goswami & Associates, a Practising
+Company Secretaries, Mumbai as Scrutiniser to conduct the voting
+process in a fair and transparent manner and had engaged the
+services of Central Depository Services (India) Limited as the agency
+for the purpose of providing remote e-voting facility. Mr. Chintan
+Goswami, Scrutiniser, had submitted his report on voting to the
+Chairman on June 21, 2017. The resolution was passed on Tuesday,
+June 20, 2017 with requisite majority which was the date of NCLT
+convened meeting Combined voting results of Postal Ballot/E-
+voting/Poll for Equity Shareholders meeting are given below:
+No of Shares held
+No of Votes Polled
+% of Votes polled
+on Outstanding
+• Chairman's Communique: The Chairman's Speech is placed
+on the website of the Company.
+2,002,217,960
+No of Votes % of Votes in favour
+Against on Votes polled
+% of Votes Against
+on Votes polled
+99.9975
+0.0025
+2,399,291,181
+shares
+83.4504
+No other resolution was passed by way of postal ballot during the year, other than that stated above.
+13. DISCLOSURES
+• No transaction of a material nature has been entered into
+by the Company with its related parties that may have a
+potential conflict with the interests of the Company. Register
+of contracts containing transactions, in which directors are
+interested, is placed before the Board of Directors regularly.
+The transactions with the related parties as per Ind AS-24,
+are disclosed in the Annexure "A" attached to the Notes
+forming part of the Standalone Financial Statements for the
+year ended March 31, 2018.
+• There were no instances of non-compliance by the Company
+on any matters related to the capital markets or penalties,
+strictures imposed on the Company by the Stock Exchange
+or SEBI or any statutory authority on any matter related to
+capital markets, during the last three years.
+No of Votes
+in Favour
+2,002,167,628
+• Reminder to Investors: Reminders for unpaid dividend are
+sent to shareholders, regularly every year.
+• Corporate Filing: Announcements, Quarterly Results,
+Shareholding Pattern etc. of the Company are regularly filed
+by the Company with the Stock Exchanges and are available
+on the website of BSE Ltd. - www.bseindia.com and National
+Stock Exchange of India Ltd. - www.nseindia.com.
+15. GENERAL SHAREHOLDER INFORMATION
+15.1 Annual General Meeting:
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+15.7 Stock Market Data - Equity Shares of 1/- paid-up value:
+April, 2017
+May, 2017
+June, 2017
+July, 2017
+August, 2017
+September, 2017
+October, 2017
+57
+November, 2017
+January, 2018
+February, 2018
+Mr. Sailesh T. Desai
+Mr. Sudhir V. Valia
+Mr. Dilip S. Shanghvi
+Directors
+The details of Remuneration paid/payable to the Directors of the Company for the year ended March 31, 2018 are given below:-
+52
+2
+PHARMA
+December, 2017
+55
+No.INE044A01036
+SUNPHARMA
+Date and Time
+Venue
+September 26, 2018 at 2:45 p.m.
+Crystal Hall, Grand Mercure Vadodara
+Surya Palace, Opposite Parsi Agyari,
+Sayajigunj, Vadodara - 390 005, Gujarat.
+15.2 Financial Calendar (tentative):
+Results for quarter ending
+30th June, 2018
+Results for quarter ending
+30th September, 2018
+Results for quarter ending
+31st December, 2018
+Audited Results for year
+ended 31st March, 2019
+Second week of August 2018
+Second week of November
+2018
+Second week of February
+2019
+Third or Fourth week of May
+2019
+15.3 Details of Book-closure for Equity Shareholders:
+From Wednesday, September 19, 2018 to Wednesday,
+September 26, 2018. (both days inclusive)
+ISIN
+15.4 Dividend Payment Date:
+15.5 Listing Details
+(i)
+Listing of Equity Shares on At BSE Limited (BSE) and
+Stock Exchanges
+National Stock Exchange of
+India Limited (NSE)
+(ii) Payment of Listing Fee
+15.6 Stock Code: Equity Shares
+(a) Trading Symbol at BSE Ltd.
+Listing Fees for the financial
+year 2018-19 have been
+paid to BSE Limited and
+National Stock Exchange
+of India Limited, where the
+Company's Equity Shares
+continue to be listed.
+Trading Symbol at National Stock
+Exchange of India Limited
+(b) Demat ISIN Numbers in NSDL
+and CDSL for Equity Shares of
+1/- each
+SUNPHARMA
+524715
+On or before October 1, 2018
+At the Twenty-Fifth Annual General Meeting.
+Approval for re-appointment of Mr. Dilip S. Shanghvi
+(DIN: 00005588) as Managing Director of the Company
+for a period of 5 (Five) years from the expiry of his
+present term of office i.e. with effect from April 01,
+2018 to March 31, 2023 and approval of maximum limit
+of remuneration for the period from April 01, 2018 to
+March 31, 2021
+• Annual Report: Annual Report containing inter alia Audited
+Annual Accounts, Consolidated Financial Statements, Board's
+Report, Auditor's Report, and other important information
+is circulated to Members and others entitled thereto. The
+Management's Discussion and Analysis Report forms part of
+the Annual Report.
+c)
+September 17, 2016
+Twenty-Fourth AGM Sir Sayajirao Nagargruh, Akota,
+Vadodara 390 020, Gujarat
+Twenty-Fifth AGM Sir Sayajirao Nagargruh, Akota,
+Vadodara - 390 020, Gujarat
+2016-2017
+2015-2016
+9.45 a.m.
+October 31, 2015
+Time
+Date
+Location
+Prof. Chandravadan C. Mehta Auditorium -
+General Education Center, Maharaja Sayajirao
+University of Baroda, Near D. N. Hall, Pratap Gunj,
+Vadodara-390002, Gujarat
+Meeting
+Twenty-Third AGM
+2014-2015
+Year
+11.15 a.m.
+(i)
+12. GENERAL BODY MEETINGS
+The policy for determining material subsidiaries of the Company is available on the website of the Company and can be accessed at:
+http://www.sunpharma.com/policies.
+CORPORATE GOVERNANCE
+ANNUAL REPORT 2017-18
+54
+Copies of the Minutes of the Board Meetings of the unlisted
+subsidiary Companies were placed at the Board Meetings of
+the Company held during the year.
+The Risk Management Committee presently comprises of
+Mr. Dilip S. Shanghvi, Managing Director of the Company,
+Mr. Sudhir V. Valia, Whole-time Director of the Company
+10. RISK MANAGEMENT COMMITTEE
+The Board of Directors of the Company reviewed periodically,
+the statement of all significant transactions and arrangements
+entered into by the unlisted subsidiary companies.
+1.
+1
+2
+2
+Location and time of the last three Annual General Meetings ("AGM") held are as follows:
+September 26, 2017
+2
+(ii) Special Resolutions passed during the last
+three Annual General Meetings:
+Approval for increase in maximum limit of remuneration
+to Mr. Sudhir V. Valia, Whole-time Director, and
+to consider approval for payment of the aforesaid
+remuneration as minimum remuneration with effect from
+April 1, 2016 for the remaining period of his present term
+of appointment upto March 31, 2019, in case inadequacy
+or absence.
+Approval for increase in maximum limit of remuneration
+payable to Mr. Dilip Shanghvi, Managing Director, with
+effect from April 1, 2016 for the remaining period of
+his present term of appointment upto March 31, 2018,
+and to consider approval for payment of the aforesaid
+remuneration as minimum remuneration. in case
+inadequacy or absence of profits
+Approval for ratification of the remuneration payable to
+M/s. Kailash Sankhlecha & Associates, Cost Accountants,
+as the Cost Auditors of the Company for audit of cost
+records maintained by the Company for the financial year
+2016-17.
+Approval for re-appointment of Mr. S Mohanchand
+Dadha (DIN 00087414), as Independent Director of the
+Company for a further term of 2 years, who would not be
+liable to retire by rotation in terms of Section 152(6) of
+Companies Act, 2013.
+Approval for re-appointment of Ms. Rekha Sethi (DIN
+06809515), as Independent Director of the Company
+for a further term of 5 years, who would not be liable
+to retire by rotation in terms of Section 152(6) of
+Companies Act, 2013.
+Approval for re-appointment of Mr. Hasmukh S. Shah
+(DIN 00152195), as Independent Director of the
+Company for a further term of 2 years, who would not be
+liable to retire by rotation in terms of Section 152(6) of
+Companies Act, 2013.
+10.45 a.m.
+5.
+4.
+10. Approval for adoption of new set of Articles of
+Association of the Company containing regulations/
+provisions in line with the Companies Act, 2013.
+3.
+9.
+Approval for re-appointment of Mr. Keki M. Mistry (DIN
+00008886), as Independent Director of the Company
+for a further term of 2 years, who would not be liable
+to retire by rotation in terms of Section 152(6) of
+Companies Act, 2013.
+8.
+2.
+of Association of the Company pursuant to Section 14 of
+the Companies Act, 2013.
+Approval for increase in maximum limit of remuneration
+to Mr. Sailesh T. Desai, Whole-time Director, and
+to consider approval for payment of the aforesaid
+remuneration as minimum remuneration with effect from
+April 1, 2016 for the remaining period of his present term
+of appointment upto March 31, 2019, in case inadequacy
+or absence of profits.
+At the Twenty-Fourth Annual General Meeting.
+Approval for re-appointment of Mr. Ashwin Dani (DIN
+00009126), as Independent Director of the Company
+for a further term of 2 years, who would not be liable
+to retire by rotation in terms of Section 152(6) of
+Companies Act, 2013.
+Approval for further issue of securities for an aggregate
+amount (inclusive of such premium as may be fixed on
+the securities) not exceeding 120 Billion (Rupees One
+Hundred Twenty Billion only).
+1.
+b)
+2.
+7.
+At the Twenty-Third Annual General Meeting.
+Approval for deletion of Clause 135 (bb) of the Articles
+1.
+a)
+6.
+17. Village & PO Ganguwala, Tehsil Paonta Sahib-173025, Distt.
+Sirmour (H.P.)
+16. Plot No. 1341 & 1342 EPIP-1, Hill Top Industrial Area, Village
+Bhatolikalan (Barotiwala), Baddi - 174103 (H.P.)
+18. Village Batamandi, Tehsil Paonta Sahib-173025, Distt. Sirmour
+(H.P.).
+15. Plot No. B-2 Madkaim Industrial Estate, Ponda, Goa
+14. Sy. No. 16, Ekarajapura, Hoskote, Bengaluru (Karnataka)
+15.17 Investor Correspondence
+E-Mail: rnt.helpdesk@linkintime.co.in
+For transfer/dematerialisation of shares, payment of dividend
+on Shares, and any other query relating to the shares of the
+Company
+For and on behalf of the Board
+SUDHIR V. VALIA
+Whole-time Director
+DILIP S. SHANGHVI
+Managing Director
+Place: Mumbai
+Date May 25, 2018
+nimish.desai@sunpharma.com
+secretarial@sunpharma.com
+ashok.bhuta@sunpharma.com
+sunil.ajmera@sunpharma.com
+Goregaon-East, Mumbai - 400 063,
+Mr. Sunil R. Ajmera/ Mr. Ashok I. Bhuta/ Mr. Nimish Desai,
+Sun House, Plot No. 201 B/1, Western Express Highway,
+To the Depository Participant.
+secretarial@sunpharma.com
+For Shares held in Demat Form
+Tel: 022-49186000 Fax: 022-49186060
+13. Pharma Manufacturing Industrial Area 3 A.B. Road,
+Dewas-455001 Madhya Pradesh
+C 101, 247 Park, L B S Marg, Vikhroli West,
+Mumbai 400 083
+Link Intime India Pvt. Ltd.
+For Shares held in Physical Form
+(b) E-mail id designated by the Company for Investor Complaints
+(c) Any query on Annual Report
+(a)
+Plot No. K - 5,6,7, Ghirongi Industrial Area, Malanpur, Dist.
+Bhind, M P.
+60
+11. A-41, Industrial Area, Phase VIII-A, Sahibzada Ajit Singh Nagar,
+Mohali-160071 (Punjab)
+3.
+2.
+1.
+Plot No.24/2 and No.25, GIDC, Phase- IV, Panoli - 395 116,
+Dist. Bharuch, Gujarat.
+Survey No.214 and 20, Govt. Industrial Area, Phase-II, Piparia,
+Silvassa 396 230, U.T. of D & NH.
+15.16 Plant locations as on March 31, 2018:
+15.15 Disclosure of commodity price risk or foreign
+exchange risk and commodity hedging activities
+The Company is exposed to foreign exchange risks emanating from
+our business, assets and liabilities denominated in foreign currency.
+In order to hedge this risk, the Company proactively uses hedging
+instruments e.g. forward contracts, options and other simple
+derivatives from time to time. The Company does not have any
+significant exposure on commodities directly.
+*The voting rights in respect of these shares shall remain frozen till the claim of
+the rightful shareholders is approved by the Company.
+(Source: Compiled from data available on NSE and BSE website)
+(Millions)
+(in Thousands)
+In no. of share
+Your Company's equity shares are fairly liquid and are actively traded
+on National Stock Exchange of India Ltd., (NSE) and The BSE Ltd.
+(BSE). Relevant data for the average daily turnover for the financial
+year 2017-18 is given below:
+Liquidity:
+About 99.45% of the outstanding Equity shares have been de-
+materialised up to March 31, 2018. Trading in Shares of the
+Company is permitted only in de-materialised form.
+15.13 Dematerialisation of Shares
+3142.92
+2848.17
+In value terms
+15.14 Outstanding GDRs/ADRs/Warrants or any
+Convertible instruments, conversion date and likely
+impact on equity:
+A-7 & A-8, MIDC Industrial Area, Ahmednagar - 414 111,
+Maharashtra.
+4.
+(Punjab)
+10. Village Toansa, P.O. Railmajra Distt. Nawansahar-144533
+CORPORATE GOVERNANCE
+ANNUAL REPORT 2017-18
+SAILESH T. DESAI
+Whole-time Director
+Plot No. Z/15, Sez-1, Po. Dahej, Taluko vagra, Dist. Bharuch,
+Gujarat.
+9.
+Survey no. 259/15, Dadra - 396191, U.T. of D. & NH.
+8.
+Plot No. 817/A, Karkhadi - 391 450, Taluka: Padra, Distt.
+Vadodara, Gujarat.
+The details of Number of Stock Options outstanding as on March
+31, 2018 are provided as an Annexure to the Board's Report and is
+available on the website of the Company.
+7.
+Outstanding Stock Options
+Halol-Baroda Highway, Near Anand Kendra, Halol, Dist.
+Panchmahal-389350 Gujarat.
+6.
+The Company does not have any outstanding GDRs/ADRs/
+Warrants/Convertible Instruments as on March 31, 2018.
+Sathammai Village, Karunkuzhi Post, Maduranthakam T.K.
+Kanchipuram Dist. Tamil Nadu - 603 303.
+5.
+Plot No. 4708, GIDC, Ankleshwar - 393 002, Gujarat.
+12.
+ANNEXURE 'A' TO CORPORATE GOVERNANCE REPORT
+A.
+I, Dilip S. Shanghvi, Managing Director of Sun Pharmaceutical Industries Limited ("the Company") hereby declare that, to the best of my
+information, all the Board Members and Senior Management Personnel of the Company have affirmed their compliance and undertaken to
+continue to comply with the Code of Conduct laid down by the Board of Directors of the Company.
+Entitlement: The authority to determine the entitlement
+to various components as aforesaid for each class and
+designation of personnel shall be as follows:
+Designation/Class
+Director
+Key Managerial
+Personnel
+Other employees
+Policy Deviation
+To be determined by
+Members on recommendation
+of NRC and the Board.
+Board on recommendation of
+the NRC
+Human Resources Head
+The Board/ NRC/ HR Head may deviate from this Policy if
+there are specific reasons to do so in an individual case.
+VI. Change Management
+The Board may in consultation with the Nomination and
+Remuneration Committee amend or modify this Policy in whole
+or in part, at any time.
+62
+ANNUAL REPORT 2017-18
+CORPORATE GOVERNANCE
+Gratuity/group insurance: Personnel may also be
+awarded to group insurance and other key man
+insurance protection. Further as required by the law
+necessary gratuity shall be paid to the personnel.
+Commission: The directors may be paid commission
+if approved by the shareholders. The shareholders
+may authorise the Board to declare commission to
+be paid to any director of the Board.
+Independent Auditor's Report on compliance with the conditions of Corporate Governance as
+per provisions of Chapter IV of Securities and Exchange Board of India (Listing Obligations and
+Disclosure Requirements) Regulations, 2015
+Non-monetary benefits: Senior management
+personnel of the Company may, on a case to
+case basis, be awarded customary non-monetary
+benefits such as discounted salary advance / credit
+facility, rent free accommodation, Company cars
+with or without chauffer's, share and share price
+related incentive, reimbursement of electrify and
+telephone bills etc.
+Variable compensation: The personnel of the
+Company may be paid remuneration by way of
+variable salaries based on their performance
+evaluation. Such variable salaries should be based
+on the performance of the individual against his
+short and long term performance objectives and
+the performance of the Company.
+A.
+Guiding Principles for remuneration: The Company
+shall remunerate all its personnel reasonably and
+sufficiently as per industry benchmarks and standards.
+The remuneration shall be commensurate to retain and
+motivate the human resources of the Company. The
+compensation package will, inter alia, take into account
+the experience of the personnel, the knowledge & skill
+required including complexity of his job, work duration
+and risks associated with the work, and attitude of the
+worker like, positive outlook, team work, loyalty etc.
+IV. Policy Statement
+V.
+B.
+C.
+Components of Remuneration: The following will be the
+various remuneration components which may be paid to
+the personnel of the Company based on the designation
+and class of the personnel.
+a.
+b.
+294.75
+C.
+d.
+e.
+f.
+Fixed compensation: The fixed salaries of the
+Company's personnel shall be competitive and
+based on the individual personnel's responsibilities
+and performance.
+Share based payments: The Board may, on the
+recommendation of the NRC, issue to certain
+class of personnel a share and share price related
+incentive program.
+DECLARATION OF COMPLIANCE WITH CODE OF CONDUCT FOR THE YEAR ENDED 31ST MARCH, 2018
+The Members of
+1.
+A.
+II. Objectives of the Policy
+Legal requirements: Section 178 of the Companies Act,
+2013 and the Listing Agreement entered into by the
+Company with the Stock Exchanges require the Board of
+Directors ("Board") of the Company, on recommendation
+of the Nomination and Remuneration Committee ("NRC"),
+to formulate a policy, relating to the remuneration for
+the directors, key management personnel and other
+employees.
+Business Need: Retaining, attracting and managing
+quality talent is of critical importance to the Company's
+intellectual property in the knowledge driven global
+business. This requires a communication by the Company
+that the organisation cares for its team and values
+the growth of its team members. This Policy intends
+to provide clarity & guidance on the remuneration
+payable to the employees of the Company including
+Directors & Key managerial Personnel members of senior
+management and manner or the mechanism in which the
+Company rewards its team.
+B.
+I.
+Need for the Policy
+REMUNERATION POLICY
+ANNEXURE 'B' TO CORPORATE GOVERNANCE REPORT
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+61
+Dilip S. Shanghvi
+Managing Director
+For Sun Pharmaceutical Industries Ltd.,
+Date: May 25, 2018
+B.
+Sun Pharmaceutical Industries Limited
+Retaining, attracting and managing quality talent.
+C.
+The Corporate Governance Report prepared by Sun
+Pharmaceutical Industries Limited (hereinafter the "Company"),
+contains details as required by the provisions of Chapter IV of
+Securities and Exchange Board of India (Listing Obligations
+and Disclosure Requirements) Regulations, 2015, as amended
+("the Listing Regulations") (Applicable criteria') with respect
+to Corporate Governance for the year ended March 31, 2018.
+This report is required by the Company for annual submission
+to the Stock exchange and to be sent to the Shareholders of
+the Company.
+MANAGEMENT'S RESPONSIBILITY
+2.
+3.
+This Policy lays down the guiding principle for employment
+agreements entered into/ to be entered into after the approval
+of the Policy and for changes made to existing employment
+agreements hereafter.
+The preparation of the Corporate Governance Report is the
+responsibility of the Management of the Company including
+the preparation and maintenance of all relevant supporting
+records and documents. This responsibility also includes the
+design, implementation and maintenance of internal control
+relevant to the preparation and presentation of the Corporate
+Governance Report.
+The Management along with the Board of Directors are also
+responsible for ensuring that the Company complies with the
+conditions of Corporate Governance as stipulated in the Listing
+Regulations, issued by the Securities and Exchange Board of India.
+AUDITOR'S RESPONSIBILITY
+4.
+5.
+III. Applicability
+E. Improving the overall performance and value of the
+Company by optimum use of its human resources.
+Ensuring the remuneration to directors, key managerial
+personnel and senior management is proportionate to
+the job role & responsibilities and comparable to the
+industrial standards. Variable Incentive pay, if paid to any
+employee, should be linked to the performance of such
+employee and also the Company during such period.
+D.
+Ensuring that the relationship of remuneration to
+performance is clear and meets appropriate performance
+benchmarks.
+Ensuring that the level and composition of remuneration
+is reasonable and sufficient to attract, retain and motivate
+the all the employees of the Company at different levels
+of the organisation to put in their best efforts run and
+grow the Company successfully.
+BSE + NSE
+5806.14
+NRIs /OCBs
+BSE
+540.59
+A.
+Percentage
+No. of Shares
+Particulars
+15.12 Category-wise Share Holding as on March 31, 2018 of Equity Shares
+100.00
+Indian Promoters and Persons acting in Concert
+6.
+2209797146
+2399323180
+100.00
+616421
+0.11
+665
+0.75
+92.10
+1304855381
+54.38
+B. Mutual Funds and UTI
+H.
+G.
+Directors
+F.
+Indian Public
+E.
+4.30
+103072980
+D. Private Corporate Bodies
+7.94
+190510753
+Banks/ Financial Institutions and Insurance Companies
+C.
+8.22
+197247241
+18104677
+0.04
+257
+0.20
+4.36
+% to total shares
+Number
+104680871
+98.94
+609874
+% to total folios
+Shares of face value * 1 each/-
+No. of Folios
+Numbers
+Total
+100001 and above
+50001 100000
+4000150000
+3000140000
+20001 - 30000
+10001 20000
+2951
+Trusts
+0.48
+0.88
+4892933
+0.02
+106
+0.25
+5993915
+0.03
+169
+0.35
+8304164
+0.05
+335
+1.11
+26542479
+0.33
+2064
+21006995
+NSE
+5265.55
+175546309
+3783394
+6
+5742
+6
+as on March 31, 2017
+Number of shareholders who
+approached the Company for
+transfer of shares from the said
+Unclaimed Suspense Account
+during the period from April 1,
+2017 to March 31, 2018
+Number of shareholders to
+whom shares were transferred
+from the Unclaimed Suspense
+54.38
+Unclaimed Suspense Account
+5742
+outstanding shares lying in the
+No. of equity shares
+of 1/- each of Sun
+Pharma
+389,739
+1,107
+Aggregate number of
+Shareholders
+Particulars
+No. of
+shareholders and the
+Account during the said period.
+Aggregate number of
+1101
+383997*
+Others
+Foreign Banks and Foreign
+Companies
+Foreign National
+Foreign Portfolio Investor
+(Corporate)
+Trusts
+NRIs/ OCBs
+Directors
+Banks/ Financial Institutions
+and Insurance Companies
+Indian Public
+Mutual Funds and UTI
+Private Corporate Bodies
+Indian Promoters & Persons
+Acting in Concert
+as on March 31, 2018
+Unclaimed Suspense Account
+outstanding shares lying in the
+shareholders and the
+The status of outstanding unclaimed shares in the Unclaimed Share
+Suspense Account of the Company is as under:-
+Outstanding Unclaimed Shares
+8.22
+7.94
+0.03
+697287
+0.00
+21040
+16.32
+391589373
+K. Foreign Bank and Foreign Companies
+I. Foreign Portfolio Investor (Corporate)
+Foreign National
+J.
+0.64
+15374984
+0.31
+7488638
+0.16
+L.
+7.32
+Others
+9135800
+2399323180
+4.30
+7.32
+0.16
+0.31
+0.64
+16.32
+0.38
+0.00
+0.03
+Shareholding Pattern as on 31st March 2018
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+59
+100.00
+0.38
+Total
+Pursuant to the requirements of the Listing Regulations, our
+responsibility is to express a reasonable assurance in the form
+of an opinion whether the Company has complied with the
+specific requirements of the Listing Regulations referred to in
+paragraph 3 above.
+Located in Goa
+We have complied with the relevant applicable requirements
+of the Standard on Quality Control (SQC) 1, Quality Control for
+Firms that Perform Audits and Reviews of Historical Financial
+17.4
+2.7
+Carrying amount as
+at 31st March 2018
+(in millions)
+17.1
+2.6
+Located in Punjab.
+213.2
+Located in Madhya
+222.4
+205.9
+215.5
+Pradesh.
+Located in Gujarat
+0.7
+Cost or deemed
+cost as at 31st
+March 2018
+(in millions)
+0.3
+The lease agreements are in the name of Crosslands Research
+Laboratories Limited which was merged with Ranbaxy
+Laboratories Limited, erstwhile company that was merged with
+the Company under Sections 391 to 394 of the Companies
+Act, 1956 in terms of the approval of the Honourable High
+Courts of Gujarat and of Punjab and Haryana.
+The lease agreements are in the name of Ranbaxy Laboratories
+Limited, erstwhile company that was merged with the
+Company under Sections 391 to 394 of the Companies Act,
+1956 in terms of the approval of the Honourable High Courts
+of Gujarat and of Punjab and Haryana.
+The lease agreements are in the name of Gujarat Lyca Limited,
+erstwhile company that was merged with the Company under
+Sections 391 to 394 of the Companies Act, 1956 in terms of
+the approval of the Honourable High Courts of Gujarat.
+The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is
+reasonable. No material discrepancies were noticed on such physical verification. Inventories lying with third parties have been
+confirmed by them and no material discrepancies were noticed in respect of such confirmations.
+(iii) (a) The Company has granted loans to one Company covered in the register maintained under section 189 of the Companies Act,
+2013. In our opinion and according to the information and explanations given to us, the terms and conditions of the grant of such
+loans are not prejudicial to the Company's interest.
+(iv)
+(v)
+(b)
+(c)
+The Company has granted loans that are re-payable on demand, to a firm covered in the register maintained under section 189
+of the Companies Act, 2013. The schedule of repayment of principal and payment of interest has been stipulated for the loans
+granted and the repayment/receipts are regular.
+There are no amounts of loans granted to companies, firms or other parties listed in the register maintained under section 189 of
+the Companies Act, 2013 which are overdue for more than ninety days.
+In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section
+186 of the Act in respect of grant of loans, making investments and providing guarantees and securities as applicable. During the year,
+the Company has not granted any loans covered under Section 185 of the Act.
+The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of
+Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
+Remarks
+(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government
+for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture of pharmaceutical
+products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not,
+however, made a detailed examination of the same.
+Maharashtra
+Land
+5.8
+5.8
+Freehold Land located in Karnataka
+28.3
+Freehold Land located in Punjab
+2.5
+28.3
+2.5
+Freehold Land located in Chennai
+11.3
+Land and Building situated at Village
+122.7
+Bhatauli Kalan, PO Barotiwala,
+Nalagarh, District Solan (HP)
+Located In
+Land and Building situated at Vill.
+Nalagarh, District Solan (HP)
+The title deeds are in the name of Ranbaxy
+Laboratories Limited, erstwhile company that was
+merged with the Company under Sections 391 to 394
+of the Companies Act, 1956 in terms of the approval
+of the Honourable High Courts of Gujarat and of
+Punjab and Haryana.
+The title of this land is under dispute in respect of
+which we have been informed by the Management
+of the Company that they have filed a Special Leave
+Petition with the Honourable Supreme Court against
+the order passed by the Honourable High Court
+of Punjab and Haryana and the matter is under
+adjudication.
+7.7 The titles are in the name of Tamilnadu Dadha
+Pharmaceuticals Limited / Pradeep Drug Company
+Limited, erstwhile companies that were merged
+with the Company under Sections 391 to 394 of the
+Companies Act, 1956 in terms of the approval of the
+Honourable High Courts of Gujarat and of Tamilnadu
+/ order of the New Delhi Bench of Board of Industrial
+and Financial Reconstruction respectively.
+86.2 The title deeds are in the name of Solrex
+Pharmaceuticals, erstwhile Partnership firm that was
+merged with the Company under Sections 230 to 232
+of the Companies Act, 2013.
+In respect of building where the Company is entitled to the right of occupancy and use and disclosed as property, plant and
+equipment in the standalone Ind AS financial statements, we report that the agreement / non-convertible preference shares /
+compulsorily convertible debentures entitling the right of occupancy and use of building, are in the name of the Company as at
+the balance sheet date.
+We conducted our examination of the Corporate Governance
+Report in accordance with the Guidance Note on Reports
+or Certificates for Special Purposes and the Guidance Note
+on Certification of Corporate Governance, both issued by
+the Institute of Chartered Accountants of India ("ICAI"). The
+Guidance Note on Reports or Certificates for Special Purposes
+requires that we comply with the ethical requirements of
+the Code of Ethics issued by the Institute of Chartered
+Accountants of India.
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING
+"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENT" OF OUR
+REPORT OF EVEN DATE
+Re: Sun Pharmaceutical Industries Limited ('the Company')
+(ii)
+In respect of immovable properties of land and buildings that have been taken on lease and disclosed as property, plant and
+equipment in the standalone Ind AS financial statements, the lease agreements are in the name of the Company, where the
+Company is the lessee in the agreement, except for the following:
+Particulars of Leasehold
+Bhatauli Kalan, PO Barotiwala,
+Freehold Land located in Madhya
+Pradesh
+(vii) (a)
+(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'
+state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and
+other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
+-69.64%
+30.10%
+-39.54%
+-70.32%
+30.69%
+-39.62%
+2 years
+-39.27%
+11.30%
+to BSE Sensex
+BSE Sensex
+Sun Pharma relative
+Sun Pharma
+Share Price on BSE
+-27.96%
+3 years
+-38.30%
+-28.05%
+Year-on-year
+Sun Pharma
+Relative to Nifty
+Share Price on NSE
+NIFTY
+Sun Pharma
+Period
+BSE Sensex
+% Change in
+NIFTY
+% Change in
+Share price performance relative to NIFTY and BSE Sensex based on share price on 31st March, 2018.
+CORPORATE GOVERNANCE
+ANNUAL REPORT 2017-18
+5001 10000
+10.25%
+Undisputed statutory dues including provident fund, employees' state insurance, income-tax, sales-tax, service tax, duty of
+custom, duty of excise, value added tax, goods and service tax, cess and other statutory dues have generally been regularly
+deposited with the appropriate authorities though there has been a slight delay in a few cases.
+-51.65%
+-70.76%
+68
+No. of Equity Shares held
+15.11 Distribution of Shareholding as on March 31, 2018
+Presently, the share transfers which are received in physical form are processed and transferred by Registrar and Transfer Agents and the
+share certificates are returned within a period of 15 days from the date of receipt, subject to the documents being valid and complete in all
+respects.
+15.10 Share Transfer System
+Tel: 022-49186000 Fax: 022-49186060
+C 101, 247 Park, LB S Marg, Vikhroli West, Mumbai 400 083
+E-Mail: rnt.helpdesk@linkintime.co.in
+Link Intime India Pvt. Ltd.
+Registrars & Transfer Agent (Share transfer and communication
+regarding share certificates, dividends and change of address)
+15.9 Registrars & Transfer Agent
+(Source: Compiled from data available on BSE and NSE website)
+191.57%
+110.74%
+19.11%
+302.31%
+113.62%
+302.73%
+10 years
+-53.96%
+75.03%
+21.07%
+-57.07%
+77.98%
+20.91%
+5 years
+-69.46%
+17.92%
+-51.54%
+189.12%
+27.2
+109.0
+67
+Freehold Land located in Haryana
+63
+SUN SUN PHARMACEUTICAL INDUSTRIES LTD.
+PHARMA
+did not involve us performing audit tests for the purposes of
+expressing an opinion on the fairness or accuracy of any of
+the financial information or the financial statements of the
+Company taken as a whole.
+OPINION
+8.
+Based on the procedures performed by us as referred in
+paragraph 7 above, and according to the information and
+explanations given to us, we are of the opinion that the
+Company has complied with the conditions of Corporate
+Governance as stipulated in the Listing Regulations, as
+applicable for the year ended March 31, 2018, referred to in
+paragraph 1 above.
+109.0
+9.
+This report is neither an assurance as to the future viability of
+the Company nor the efficiency or effectiveness with which the
+management has conducted the affairs of the Company.
+10. This report is addressed to and provided to the members of the
+Company solely for the purpose of enabling it to comply with
+its obligations under the Listing Regulations with reference
+to compliance with the relevant regulations of Corporate
+Governance and should not be used by any other person or for
+any other purpose. Accordingly, we do not accept or assume
+any liability or any duty of care or for any other purpose
+or to any other party to whom it is shown or into whose
+hands it may come without our prior consent in writing. We
+have no responsibility to update this report for events and
+circumstances occurring after the date of this report.
+For S RBC & CO LLP
+The above-mentioned procedures include examining evidence
+supporting the particulars in the Corporate Governance Report
+on a test basis. Further, our scope of work under this report
+Chartered Accountants
+per Paul Alvares
+Partner
+Membership Number: 105754
+Place of Signature: Mumbai
+Date: May 25, 2018
+64
+ANNUAL REPORT 2017-18
+Independent Auditor's Report
+To the Members of Sun Pharmaceutical Industries Limited
+STANDALONE FINANCIAL STATEMENTS
+Report on the Standalone Ind AS Financial Statements
+We have audited the accompanying standalone Ind AS financial statements of Sun Pharmaceutical Industries Limited ("the Company"),
+which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, including the statement of Other Comprehensive
+Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting
+policies and other explanatory information.
+Management's Responsibility for the Standalone Ind AS Financial Statements
+The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
+respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial
+performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting
+principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act., read with
+the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting
+records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds
+and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable
+and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for
+ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial
+statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
+Auditor's Responsibility
+ICAI Firm Registration Number: 324982E/E300003
+Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account
+the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the
+provisions of the Act and the Rules made thereunder. We conducted our audit of the standalone Ind AS financial statements in accordance
+with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act.
+Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
+whether the financial statements are free from material misstatement.
+Performed necessary inquiries with the management and
+also obtained necessary specific representations from
+management.
+Risk Management Committee meeting;
+7.
+Information, and Other Assurance and Related Services
+Engagements.
+The procedures selected depend on the auditor's judgement,
+including the assessment of the risks associated in compliance
+of the Corporate Governance Report with the applicable
+criteria. Summary of key procedures performed include:
+i.
+ii.
+iii.
+iv.
+V.
+vi.
+Read and understood the information prepared by the
+Company and included in its Corporate Governance
+Report;
+Obtained and verified that the composition of the Board
+of Directors w.r.t executive and non-executive directors
+has been met throughout the reporting period;
+Obtained and read the Register of Directors as on March
+31, 2018 and verified that atleast one woman director
+was on the Board during the year;
+Obtained and read the minutes of the following meetings
+held April 1, 2017 to March 31, 2018:
+Obtained necessary representations and declarations
+from directors of the Company including the independent
+directors; and
+(a)
+(b)
+Audit Committee meeting;
+(c)
+Annual General Meeting;
+(d) Nomination and Remuneration Committee meeting;
+(e)
+Stakeholders Relationship Committee;
+(f)
+Committee of Directors (Allotment) meeting;
+Corporate Social Responsibility Committee meeting;
+(h)
+Independent Directors meeting; and
+(i)
+Board of Directors meeting;
+An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
+procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the standalone
+Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control
+relevant to the Company's preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit
+procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used
+and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the
+standalone Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
+for our audit opinion on the standalone Ind AS financial statements.
+OTHER MATTERS AND RESTRICTION ON USE
+In our opinion and to the best of our information and according to the explanations given to us, the standalone Ind AS financial statements
+give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles
+generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its loss including other comprehensive income, its
+cash flows and the changes in equity for the year ended on that date.
+ICAI Firm Registration No.: 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Place: Mumbai
+Date: May 25, 2018
+66
+ANNUAL REPORT 2017-18
+STANDALONE FINANCIAL STATEMENTS
+ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING
+“REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENT” OF OUR
+REPORT OF EVEN DATE
+Re: Sun Pharmaceutical Industries Limited ('the Company')
+(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
+Chartered Accountants
+(b)
+(c)
+verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material
+discrepancies were noticed on such verification.
+According to the information and explanations given by the management, the title deeds of immovable properties, included in
+property, plant and equipment are held in the name of the Company, except for the following immovable properties for which
+registration of title deeds is in process:
+Particulars of Freehold Land and building
+Gross Block
+(in millions)
+Opinion
+Remarks
+(in millions)
+Freehold Land located in Himachal
+Pradesh
+76.3
+76.3
+Freehold Land located in Punjab
+27.2
+All fixed assets have not been physically verified by the management during the year but there is a regular programme of
+For S RBC & CO LLP
+Net Block
+The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable
+losses, if any, on long-term contracts including derivative contracts - Refer Note 25 and 30 to the standalone Ind AS
+financial statements
+There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
+by the Company, except a sum of 16.9 Million, which is held in abeyance due to pending legal cases.
+Other Matter
+The Ind AS financial statements of the Company for the year ended March 31, 2017, included in these standalone Ind AS financial
+statements, have been audited by the predecessor auditor who expressed an unmodified opinion on those statements on May 26, 2017.
+Report on Other Legal and Regulatory Requirements
+1.
+As required by the Companies (Auditor's report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-
+section (11) of section 143 of the Act, we give in the Annexure 1 a statement on the matters specified in paragraphs 3 and 4 of the
+Order.
+65
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Independent Auditor's Report
+To the Members of Sun Pharmaceutical Industries Limited
+2.
+As required by section 143 (3) of the Act, we report that:
+(a)
+Upto 5000
+(b)
+iii.
+We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
+for the purpose of our audit;
+i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial
+statements – Refer Note 40 to the standalone Ind AS financial statements;
+With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these
+standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure
+2" to this report;
+On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of
+Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164
+(2) of the Act;
+In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under
+section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
+With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and
+Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
+(g)
+(f)
+(e)
+(d)
+(c)
+In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
+examination of those books;
+The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow
+Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
+14,044.5
+Subsidiary companies
+8,154.8
+2,040.7
+Others [24,000 (March 31, 2017: 20,000)]
+0.0
+0.0
+Net cash from investing activities (B)
+23,813.8
+Proceeds from issue of equity shares on exercise of stock options/ share application
+money received
+Standalone Cash Flow Statement
+for the year ended March 31, 2018
+Particulars
+C. CASH FLOW FROM FINANCING ACTIVITIES
+Dividend received from
+Proceeds from borrowings
+Subsidiary company
+Others
+Repayment of borrowings
+ANNUAL REPORT 2017-18
+169.0
+(37.2)
+48.3
+Interest received
+512.0
+4.8
+Others
+(855.0)
+(168,061.1)
+(6.1)
+(176,388.7)
+Proceeds from sale / redemption of investments
+Subsidiary companies
+12,384.5
+Others
+1,440.0
+168,335.1
+Bank balances not considered as cash and cash equivalents
+Fixed deposits placed
+(107.0)
+144.2
+Fixed deposits matured
+Margin money placed
+Margin money matured
+(941.9)
+629.5
+32,318.4
+141.5
+176,366.3
+Associate
+1,533.3
+(0.4)
+Net gain arising on financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through profit or loss
+(8,154.8)
+(2,040.7)
+(0.7)
+(16.1)
+(95.8)
+(186.0)
+Net loss/ (gain) on sale of financial assets measured at fair value through other
+comprehensive income
+15.1
+Gain on sale of investment in subsidiary
+Dividend income on investments
+(1,328.0)
+Gain on sale of investment in associate
+(120.3)
+Provision / write off / (reversal) for doubtful trade receivables / advances
+Sundry balances written back, net
+(135.7)
+38.5
+(142.0)
+Subsidiary company
+(27.6)
+Expense/ (income) recognised in respect of share based payments to employees
+Impairment in value of investment, net
+(1.0)
+(2,307.8)
+30.8
+(232.1)
+3,883.1
+(1,287.6)
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 25, 2018
+STANDALONE FINANCIAL STATEMENTS
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Standalone Cash Flow Statement
+for the year ended March 31, 2018
+Particulars
+A. CASH FLOW FROM OPERATING ACTIVITIES
+Loss before tax
+2,235.7
+Adjustments for:
+Year ended
+March 31, 2018
+(5,199.8)
+* in Million
+Year ended
+March 31, 2017
+(168.0)
+Loss on sale/write off of property, plant and equipment and intangible assets, net
+Finance costs
+4,322.3
+63.7
+4,222.8
+112.2
+Interest income
+Depreciation and amortisation expense
+(562.2)
+Provision in respect of losses of a subsidiary
+254.3
+Income tax paid (net of refund)
+(2,914.2)
+(7,836.0)
+Net cash used in operating activities (A)
+(11,840.6)
+(16,210.0)
+B. CASH FLOW FROM INVESTING ACTIVITIES
+Payments for purchase of property, plant and equipment (including capital work-in-
+progress, intangible assets and intangible assets under development)
+(7,333.3)
+(10,940.1)
+(8,374.0)
+Proceeds from disposal of property, plant and equipment and intangible assets
+Loans/Inter corporate deposits
+97.3
+Given to
+76
+Subsidiary company
+Others
+Received back / matured from
+Subsidiary companies
+Others
+Purchase of investments
+Subsidiary companies
+62.7
+(8,926.4)
+Cash used in operations
+(804.2)
+Net unrealised foreign exchange loss / (gain)
+Operating loss before working capital changes
+Movements in working capital:
+(Increase)/ decrease in inventories
+Increase in trade receivables
+Increase in other assets
+(402.8)
+165.4
+(2,387.3)
+(8,771.9)
+(680.5)
+1,726.4
+(1,667.3)
+(925.2)
+(6,681.1)
+(5,272.3)
+(1,814.2)
+Increase in trade payables
+4,100.9
+3,265.8
+Increase in other liabilities
+Decrease in provisions
+2,463.3
+7.5
+(2,247.6)
+(320.0)
+Others
+1,409.9
+Payment for share buy-back expenses
+(32.1)
+94.2
+68,840.1
+754.1
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+per PAUL ALVARES
+Partner
+106.3
+Membership No.: 105754
+C. S. MURALIDHARAN
+Chief Financial Officer
+SUNIL R. AJMERA
+Company Secretary
+DILIP S. SHANGHVI
+Managing Director
+SUDHIR V. VALIA
+Wholetime Director
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 25, 2018
+77
+Mumbai, May 25, 2018
+176.1
+8,091.6
+exchange rates
+60,466.1
+1,210.0
+(518.0)
+The accompanying notes are an integral part of the standalone financial statements
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+from
+financing
+cash flows
+The effect of
+changes in foreign
+Changes in
+fair value
+Other
+Changes
+* in Million
+Balance as
+on March
+31, 2018
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2018
+Current vs. Non-current
+The Company presents assets and liabilities in
+the balance sheet based on current / non-current
+classification. An asset is treated as current when it is:
+•
+Expected to be realised or intended to be sold or
+consumed in normal operating cycle
+• Held primarily for the purpose of trading
+• Expected to be realised within twelve months after the
+reporting period, or
+• Cash or cash equivalent unless restricted from being
+exchanged or used to settle a liability for at least twelve
+months after the reporting period
+All other assets are classified as non-current.
+A liability is current when:
+• It is expected to be settled in normal operating cycle
+⚫It is held primarily for the purpose of trading
+• It is due to be settled within twelve months after the
+reporting period, or
+78
+a.
+April 01,
+2017
+The Company has consistently applied the following
+accounting policies to all periods presented in these financial
+statements.
+• Level 2 inputs are inputs, other than quoted prices included
+within Level 1, that are observable for the asset or liability,
+either directly or indirectly; and
+1.
+2.
+GENERAL INFORMATION
+Sun Pharmaceutical Industries Limited ("the Company") is a
+public limited company incorporated and domiciled in India,
+having it's registered office at Vadodara, Gujarat, India and
+has its listing on the Bombay Stock Exchange Limited and
+National Stock Exchange of India Limited. The Company is in
+the business of manufacturing, developing and marketing a
+wide range of branded and generic formulations and Active
+Pharmaceutical Ingredients (APIs). The Company has various
+manufacturing locations spread across the country with trading
+and other incidental and related activities extending to the
+global markets.
+The standalone financial statements were authorised for issue in
+accordance with a resolution of the directors on May 25, 2018.
+SIGNIFICANT ACCOUNTING POLICIES
+2.1 Statement of compliance
+These financial statements are separate financial statements
+of the Company (also called standalone financial statements).
+The Company has prepared financial statements for the year
+ended March 31, 2018 in accordance with Indian Accounting
+Standards (Ind AS) notified under the Companies (Indian
+Accounting Standards) Rules, 2015 (as amended) together
+with the comparative period data as at and for the year ended
+March 31, 2017.
+2.2 Basis of preparation and presentation
+The financial statements have been prepared on the historical
+cost basis, except for: (i) certain financial instruments that are
+measured at fair values at the end of each reporting period;
+(ii) Non-current assets classified as held for sale which are
+measured at the lower of their carrying amount and fair value
+less costs to sell; (iii) derivative financial instrument and (iv)
+defined benefit plans - plan assets that are measured at fair
+values at the end of each reporting period, as explained in the
+accounting policies below:
+Historical cost is generally based on the fair value of the
+consideration given in exchange for goods and services.
+The standalone financial statements are presented in and all
+values are rounded to the nearest Million (*000,000) upto one
+decimal, except when otherwise indicated.
+Fair value is the price that would be received to sell an asset
+or paid to transfer a liability in an orderly transaction between
+market participants at the measurement date, regardless of
+whether that price is directly observable or estimated using
+another valuation technique. In estimating the fair value of
+an asset or a liability, the Company takes into account the
+characteristics of the asset or liability if market participants
+would take those characteristics into account when pricing
+the asset or liability at the measurement date. Fair value for
+measurement and/or disclosure purposes in these financial
+statements is determined on such a basis, except for share-
+based payment transactions that are within the scope of Ind AS
+102, leasing transactions that are within the scope of Ind AS
+17, and measurements that have some similarities to fair value
+but are not fair value, such as net realisable value in Ind AS 2 or
+value in use in Ind AS 36.
+In addition, for financial reporting purposes, fair value
+measurements are categorised into Level 1, 2, or 3 based on
+the degree to which the inputs to the fair value measurements
+are observable and the significance of the inputs to the fair
+value measurement in its entirety, which are described as
+follows:
+• Level 1 inputs are quoted prices (unadjusted) in active
+markets for identical assets or liabilities that the entity can
+access at the measurement date;
+• Level 3 inputs are unobservable inputs for the asset or
+liability.
+Derivatives (Asset, net)
+Borrowings
+as on
+STANDALONE FINANCIAL STATEMENTS
+Year ended
+March 31, 2018
+9.1
+* in Million
+Year ended
+March 31, 2017
+24.8
+28,122.1
+9,200.0
+117,554.1
+53,590.4
+(22,655.1)
+(17,219.9)
+(114,929.5)
+(42,431.5)
+(6,750.0)
+Less:- cash credit facilities included under loans repayable on demand in Note 26
+Cash and cash equivalents in cash flow statement
+(34.2)
+Cash and cash equivalents (Refer Note 16)
+Cheques on hand
+Finance costs
+Dividend paid
+Dividend distribution tax
+Net cash used in financing activities (C)
+Net increase/ (decrease) in cash and cash equivalents (A+B+C)
+Cash and cash equivalents at the beginning of the year
+Effect of exchange differences on restatement of foreign currency cash and cash
+equivalents
+Cash and cash equivalents at the end of the year
+Notes:
+1
+Cash and cash equivalents comprises of
+Particulars
+Balances with banks
+In current accounts
+In deposit accounts with original maturity less than 3 months
+Cash on hand
+Payment for buy-back of equity shares
+(2,836.9)
+(7,981.4)
+4.5
+2.4
+6.5
+1,094.3
+1,533.3
+116.3
+58.1
+978.0
+1,475.2
+2
+Change in financial liability / asset arising from financing activities
+Particulars
+Balance
+Changes
+Non cash changes
+1,522.3
+(1,435.6)
+1,091.3
+0.6
+March 31, 2018
+(2,399.2)
+(3.4)
+(2,721.0)
+(74.7)
+(7,529.9)
+(517.1)
+73.9
+1,475.2
+SUDHIR V. VALIA
+Wholetime Director
+19.9
+(8.6)
+978.0
+1,475.2
+* in Million
+As at
+As at
+March 31, 2017
+DILIP S. SHANGHVI
+Managing Director
+reserve outstanding
+C. S. MURALIDHARAN
+Chief Financial Officer
+Re: Sun Pharmaceutical Industries Limited ('the Company')
+(c) According to the records of the Company, the dues of income-tax, sales-tax, service tax, duty of custom, duty of excise, value
+added tax and cess on account of any dispute, are as follows:
+Name of the
+statute
+Income Tax Act,
+1961
+Sales Tax Act/VAT
+(Various States)
+ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING
+"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENT” OF OUR
+REPORT OF EVEN DATE
+Nature of dues
+Income Tax,
+Interest and
+penalty
+Sales Tax,
+Forum where the dispute is pending
+Income Tax Appellate Tribunal (ITAT)
+Commissioner (Appeals)
+Assistant/Additional /Senior Joint
+Commissioner
+Appellate Authority
+Period to which the
+amount relates
+1995-96, 2007-08, 2009-10
+to 2011-12
+Interest and
+Penalty
+2003-04, 2013-14, 2014-15
+STANDALONE FINANCIAL STATEMENTS
+Total current liabilities
+210,124.7
+197,701.0
+2,399.3
+207,725.4
+2,399.3
+195,301.7
+22
+21
+ANNUAL REPORT 2017-18
+22
+March 31, 2018
+Notes
+* in Million
+As at
+As at
+STANDALONE FINANCIAL STATEMENTS
+Total liabilities
+March 31, 2017
+1999-00, 2000-01, 2003-04, 2004-05 &
+2013-14 to 2015-16
+Amount*
+(in Million)
+20,308.4
+Commissioner (Appeals)
+High Court
+Customs, Excise and Service Tax
+Appellate Tribunal (CESTAT), Delhi
+Commissioner (Appeals)
+CESTAT
+2012-13 to 2014-15
+3.1
+2008-09 to 2012-13 & 2014-15
+2010-11, 2011-12 & 2012-13
+21.6
+Interest and
+Penalty
+116.0
+1,162.4
+2003-04 to 2016-17
+80.8
+2003-04 to 2005-06 & 2008-09 to
+2013-14
+* Net of amount paid / adjusted under protest. Amount included herein includes interest till the date of the order.
+(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in
+repayment of loans or borrowing to a financial institution, bank or government. The Company did not have any outstanding dues to
+debenture holders during the year.
+63.2
+2003-04 to 2015-16
+CESTAT
+The Central Excise Excise Duty,
+Act, 1944
+Customs Duty,
+Penalty and
+Interest
+10,517.1
+31.8
+Tribunal
+1998-99, 2008-09, 2014-15 & 2015-16
+1998-99 to 2003-04, 2008-09 & 2009-10
+14.9
+5.7
+High Court
+1999-00 to 2010-11
+53.2
+The Central Excise Service Tax
+Act, 1944
+Assistant / Additional /Senior Joint
+Commissioner
+2006-07 to 2015-16
+46.6
+Customs Act,
+1962
+222
+(ix) In our opinion and according to the information and explanations given by the management, the Company has utilised the monies
+raised by way term loans for the purposes for which they were raised. The Company has not raised any money way of initial public offer
+/ further public offer / debt instruments.
+15,646.9
+9.1
+3,451.8
+(IV) Expenses
+(III) Total income (I + II)
+(II) Other income
+Revenue from operations
+(I)
+Particulars
+Notes
+Standalone Statement of Profit and Loss
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+73
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 25, 2018
+SUDHIR V. VALIA
+Wholetime Director
+DILIP S. SHANGHVI
+Managing Director
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+PHARMA
+SUNIL R. AJMERA
+Company Secretary
+Year ended
+March 31, 2018
+Year ended
+March 31, 2017
+(b)
+Purchases of stock-in-trade
+22,284.5
+21,675.2
+33
+Cost of materials consumed
+* in Million
+83,082.8
+5,150.8
+11,280.4
+32
+77,932.0
+79,476.0
+31
+90,756.4
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 25, 2018
+Membership No.: 105754
+29
+28,145.1
+18,567.4
+28
+20,726.0
+24,899.4
+2,575.1
+27
+52,138.1
+26
+18,941.5
+19,107.8
+11,328.3
+6.8
+40,540.4
+1,740.7
+30
+24,254.9
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the standalone financial statements
+TOTAL EQUITY AND LIABILITIES
+338,692.7
+339,243.7
+128,568.0
+141,542.7
+109,626.5
+122,434.9
+18,474.3
+7,606.4
+(i)
+(ii)
+(x)
+(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in
+accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
+(xii) In our opinion, the Company is not a nidhi Company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the
+Company and hence not commented upon.
+(1) Non-current assets
+ASSETS
+Particulars
+as at March 31, 2018
+Standalone Balance Sheet
+PHARMA
+As at
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Date: May 25, 2018
+Place: Mumbai
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No.: 324982E/E300003
+71
+Chartered Accountants
+Notes
+* in Million
+3
+Investments in the nature of equity in associates
+(g)
+Investments in the nature of equity in subsidiaries
+(f)
+Intangible assets under development
+March 31, 2018
+(e)
+(d)
+(c) Goodwill
+(b) Capital work-in-progress
+Property, plant and equipment
+(a)
+As at
+March 31, 2017
+Other intangible assets
+For S RBC & CO LLP
+In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting with reference to these
+standalone financial statements and such internal financial controls over financial reporting with reference to these standalone financial
+statements were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the
+Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
+Financial Reporting issued by the Institute of Chartered Accountants of India.
+Opinion
+Date: May 25, 2018
+Place: Mumbai
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No.: 324982E/E300003
+619
+Chartered Accountants
+(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are
+not applicable to the Company.
+(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions
+with directors or persons connected with him as referred to in section 192 of the Companies Act, 2013.
+(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not
+made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review
+and hence, reporting requirements under clause 3(xiv) are not applicable to the Company and, not commented upon.
+with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial
+statements, as required by the applicable accounting standards.
+(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance
+SUNIL R. AJMERA
+Company Secretary
+For S R B C & CO LLP
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+PHARMA
+ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE
+ON THE STANDALONE FINANCIAL STATEMENTS OF SUN PHARMACEUTICAL
+INDUSTRIES LIMITED
+Because of the inherent limitations of internal financial controls over financial reporting with reference to these standalone financial
+statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud
+may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference
+to these standalone financial statements to future periods are subject to the risk that the internal financial control over financial reporting
+with reference to these standalone financial statements may become inadequate because of changes in conditions, or that the degree of
+compliance with the policies or procedures may deteriorate.
+Inherent Limitations of Internal Financial Controls over Financial Reporting with Reference to these Standalone
+Financial Statements
+ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE
+ON THE STANDALONE FINANCIAL STATEMENTS OF SUN PHARMACEUTICAL
+INDUSTRIES LIMITED
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+70
+Meaning of Internal Financial Controls over Financial Reporting with Reference to these Financial Statements
+A company's internal financial control over financial reporting with reference to these standalone financial statements is a process designed
+to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
+purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting with
+reference to these standalone financial statements includes those policies and procedures that (1) pertain to the maintenance of records
+that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
+assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted
+accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of
+management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised
+acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
+We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal
+financial controls over financial reporting with reference to these standalone financial statements.
+Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial
+reporting with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial controls
+over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these
+standalone financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
+effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the
+assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
+Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting with reference to these
+standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
+Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143(10) of
+the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered
+Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the
+audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these
+standalone financial statements was established and maintained and if such controls operated effectively in all material respects.
+Auditor's Responsibility
+The Company's Management is responsible for establishing and maintaining internal financial controls based on the internal control over
+financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance
+Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These
+responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively
+for ensuring the orderly and efficient conduct of its business, including adherence to the Company's policies, the safeguarding of its assets,
+the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of
+reliable financial information, as required under the Companies Act, 2013.
+Management's Responsibility for Internal Financial Controls
+We have audited the internal financial controls over financial reporting of Sun Pharmaceutical Industries Limited ("the Company") as of March
+31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
+Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
+2013 ("the Act")
+43,756.5
+Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and
+according to the information and explanations given by the management, we report that no fraud by the Company or no material fraud
+on the Company by the officers and employees of the Company has been noticed or reported during the year.
+44
+38,693.5
+10,551.1
+(ii) Trade receivables
+447.6
+Provisions
+14
+Investments
+(i)
+15
+23,082.8
+13
+274,810.8
+270,168.5
+4,108.0
+3,953.6
+12
+21,356.4
+(b) Financial assets
+28,469.6
+(iii) Cash and cash equivalents
+Borrowings
+Other financial liabilities
+Provisions
+Total non-current liabilities
+(2) Current liabilities
+Financial liabilities
+(a)
+400.1
+27,147.0
+(i)
+(ii) Trade payables
+(iii) Other financial liabilities
+(b)
+Other current liabilities
+(c)
+16
+Borrowings
+(2) Current assets
+Total non-current assets
+(k) Other non-current assets
+1,067.8
+879.3
+7
+Investments
+(i)
+Financial assets
+(ii) Loans
+(h)
+484.8
+437.4
+182,225.7
+56
+620.8
+4
+1,208.0
+453.9
+191,865.1
+8
+(iii) Other financial assets
+9
+Inventories
+(a)
+17,848.7
+20,742.4
+11
+Income tax assets (Net)
+(j)
+7,490.6
+7,517.0
+10
+Deferred tax assets (Net)
+(i)
+990.6
+48.7
+34.2
+489.7
+8,303.9
+1,208.0
+(a) Financial liabilities
+for the year ended March 31, 2018
+Liabilities
+-
+218,907.0
+hedges
+OCI
+cash flow
+through
+1,289.2
+23.1
+Debt Effective
+instrument instrument portion of
+through OCI
+Other comprehensive income (OCI)
+34,779.3 128,178.2
+34,779.3 126,353.4
+(74.7)
+(7.1)
+(7.1)
+Equity
+Λ (600.8)
+(829.2)
+(2,406.8)
+-
+(228.4)
+32.3
+31.3
+(6,742.5)
+(34.2)
+Expenditure on buy-back of equity shares
+(7.5)
+Buy-back of equity shares [Refer Note 56 (12)]
+(6.7)
+220,196.2
+0.2
+Recognition of share-based payments to employees
+Issue of equity shares
+(74.7)
+(2,406.8)
+(862.9)
+(634.5)
+(26.6)
+(26.6)
+32.3
+(228.4)
+23.1
+1,824.8
+allotment
+6.7
+2,406.6
+Balance as at March 31, 2016
+1,094.3
+reserve premium
+Capital Securities
+36,660.0
+Total
+reserve
+General Retained
+reserve earnings
+reserve redemption
+options
+Reserve and surplus
+Share Amalgamation
+Capital
+in Million
+18,585.2
+account
+48.9
+Dividend distribution tax
+Payment of dividend
+Total comprehensive income for the year
+Other comprehensive income for the year
+-
+Loss for the year
+-
+43.8
+43.8
+(1) Non-current liabilities
+-
+(535.6)
+36,124.4 18,585.2
+6.7
+2,406.6
+Add - Transfer on merger [Refer Note 56 (13)]
+Adjusted balance as at March 31, 2016
+24.8
+Other equity
+(6,750.0)
+(34.2)
+7.5
+7.5
+43.8
+(25.4)
+25.4
+36,124.4 11,929.1
+2,399.3
+9.1
+34,779.3 112,367.7
+9.1
+@ 0.0
+Balance as at March 31, 2018
+Transfer on exercise of share options
+Issue of equity shares
+(1.0)
+(1.0)
+* (0.0)
+Recognition of share-based payments to employees
+60.0
+197,701.0
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Mumbai, May 25, 2018
+Membership No.: 105754
+Partner
+75
+per PAUL ALVARES
+(10.1)
+ICAI Firm Registration No.: 324982E/E300003
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the standalone financial statements
+@: 62,365
+* : * 7,177
+^Represents remeasurements of the defined benefit plans
+Chartered Accountants
+(3.4)
+(3.4)
+Dividend distribution tax
+Loss for the year
+210,124.7
+(26.6)
+16.0
+7.5 34,779.3 124,860.0
+43.8
+(4,945.9)
+(54.8)
+26.4
+* 0.0 36,124.4
+2,399.3
+Balance as at March 31, 2017
+Transfer on exercise of share options
+of equity shares
+(7.5)
+54.8
+11,894.6
+-
+-
+(4,945.9)
+(7,977.4)
+(7,977.4)
+Payment of dividend
+(4,451.0)
+26.6
+(10.1)
+44.0
+(4,511.5)
+Total comprehensive income for the year
+494.9
+26.6
+(10.1)
+44.0
+^ 434.4
+Other comprehensive income for the year
+Transfer to capital redemption reserve on buy-back
+Equity
+share
+48.9
+for the year ended March 31, 2018
+4,222.8
+4,322.3
+3 & 4
+Depreciation and amortisation expense
+2,235.7
+3,883.1
+Other expenses
+Particulars
+14,998.8
+16,176.9
+35
+Employee benefits expense
+(1,678.6)
+1,592.6
+Finance costs
+34
+37
+28,822.6
+Current tax
+(VIII) Tax expense
+(168.0)
+(5,199.8)
+(VII) Loss before tax (V - VI)
+9,505.0
+27,141.2
+56 (3)
+(168.0)
+4,305.2
+(V) Profit/(loss) before exceptional item and tax (III - IV)
+83,250.8
+86,451.2
+Total expenses (IV)
+(VI) Exceptional item
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+12,365.0
+11,659.9
+63,881.9
+TOTAL ASSETS
+339,243.7
+338,692.7
+72
+ANNUAL REPORT 2017-18
+69,075.2
+Standalone Balance Sheet
+Particulars
+EQUITY AND LIABILITIES
+Equity
+(a) Equity share capital
+(b) Other equity
+Total equity
+as at March 31, 2018
+Total current assets
+10,738.2
+15,845.5
+(iv) Bank balances other than (iii) above
+17
+458.4
+169.5
+(v) Loans
+18
+520.5
+138.5
+(vi) Other financial assets
+19
+882.9
+672.5
+(c)
+Other current assets
+20
+Deferred tax
+Total tax expense (VIII)
+36
+(X) Other comprehensive income
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the standalone financial statements
+Diluted (in)
+(0.1)
+(2.1)
+Chartered Accountants
+(0.1)
+Basic (in)
+47
+(862.9)
+(634.5)
+(26.6)
+16.5
+494.9
+(4,451.0)
+(2.1)
+Earnings per equity share (face value per equity share - 1)
+ICAI Firm Registration No. : 324982E/E300003
+Partner
+Standalone Statement of Changes in Equity
+money
+pending
+capital application
+Share
+ANNUAL REPORT 2017-18
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 25, 2018
+per PAUL ALVARES
+SUDHIR V. VALIA
+Wholetime Director
+(IX) Loss for the year (VII-VIII)
+C. S. MURALIDHARAN
+Chief Financial Officer
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+74
+Mumbai, May 25, 2018
+Membership No.: 105754
+DILIP S. SHANGHVI
+Managing Director
+(XI) Total comprehensive loss for the year (IX+X)
+SUNIL R. AJMERA
+Company Secretary
+Total -(B)
+664.3
+(228.4)
+(4,945.9)
+60.4
+(253.9)
+2.7
+(274.1)
+57.7
+20.2
+Income tax on above
+Remeasurements of the defined benefit plans
+a.
+A)
+Total other comprehensive income (A+B) (X)
+Items that will not be reclassified to the statement of profit or loss
+(600.8)
+(229.9)
+39
+Equity instruments through other comprehensive income
+Income tax on above
+5.4
+b.
+Debt instruments through other comprehensive income
+Income tax on above
+(15.5)
+(26.6)
+26.6
+B) Items that may be reclassified to the statement of profit or loss
+Effective portion of gains and loss on designated portion of hedging
+instruments in a cash flow hedge
+b.
+(607.9)
+67.2
+478.4
+Total - (A)
+(23.2)
+a.
+(7.1)
+(ii)
+Possible obligations which will be confirmed only by
+future events not wholly within the control of the
+Company, or
+Present obligations arising from past events where it
+is not probable that an outflow of resources will be
+required to settle the obligation or a reliable estimate
+of the amount of the obligation cannot be made.
+Revenue from sale of goods is measured at the fair value
+of the consideration received or receivable. Revenue is
+stated exclusive of sales tax, value added tax, goods and
+service tax and net of returns, chargebacks, rebates and
+other similar allowances. Revenue is inclusive of excise
+duty till the period, provision of excise duty was levied on
+sale of goods.
+Revenue
+Sale of goods
+Revenue from sale of goods is recognised when the
+significant risks and rewards of ownership have been
+transferred to the buyer, usually on delivery of goods,
+it is probable that the economic benefit will flow to
+the Company, the associated costs and possible return
+of goods can be estimated reliably, there is neither
+continuing management involvement to the degree
+usually associated with ownership nor effective control
+over the goods sold and the amount of revenue can be
+measured reliably. The Company is principal in all of its
+revenue arrangements, since it is the primary obligor in
+all of the revenue arrangements, as it has pricing latitude
+and is exposed to inventory and credit risks.
+Sales returns
+Provisions for chargeback, rebates, discounts and
+medicaid payments are estimated and provided for in the
+year of sales and recorded as reduction of revenue.
+Contingent assets are not recognised in the financial
+statements.
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+If the effect of the time value of money is material,
+provisions are determined by discounting the expected
+future cash flows at a pre-tax rate that reflects current
+market assessments of the time value of money and the
+risks specific to the liability. Where discounting is used,
+the increase in the provision due to the passage of time is
+recognised as a finance cost.
+Present obligations arising under onerous contracts are
+recognised and measured as provisions. An onerous
+contract is considered to exist where the Company has a
+contract under which the unavoidable costs of meeting
+the obligations under the contract exceed the economic
+benefit expected to be received from the contract.
+Onerous contracts
+A provision for restructuring is recognised when the
+Company has a detailed formal restructuring plan and
+has raised a valid expectation in those affected that it will
+carry out the restructuring by starting to implement the
+plan or announcing its main features to those affected by
+it. The measurement of a restructuring provision includes
+only the direct expenditure arising from the restructuring,
+which are those amounts that are both necessarily
+entailed by the restructuring and not associated with the
+ongoing activities of the entity.
+Restructuring
+Provisions are recognised when the Company has a
+present obligation (legal or constructive) as a result of
+past event, it is probable that an outflow of resources
+embodying economic benefits will be required to settle
+the obligation and a reliable estimate can be made of the
+amount of obligation. When the Company expects some
+or all of a provision to be reimbursed, for example, under
+an insurance contract, the reimbursement is recognised
+as a separate asset, but only when the reimbursement
+is certain. The expense relating to a provision is
+presented in the statement of profit and loss net of any
+reimbursement.
+Provisions, contingent liabilities and contingent
+assets
+For the purpose of the statement of cash flows, cash and
+cash equivalents consist of cash and short-term deposits,
+as defined above, net of outstanding bank overdrafts as
+they are considered an integral part of the Company's
+cash management.
+m.
+for the year ended March 31, 2018
+The Company accounts for sales returns accrual by
+recording an allowance for sales returns concurrent
+with the recognition of revenue at the time of a product
+sale. This allowance is based on the Company's estimate
+of expected sales returns. With respect to established
+Notes to the Standalone Financial Statements
+n.
+87
+The Company recognises government grants only
+when there is reasonable assurance that the conditions
+attached to them will be complied with, and the grants
+will be received. When the grant relates to an expense
+item, it is recognised as income on a systematic basis
+over the periods that the related costs, for which it is
+intended to compensate, are expensed. When the grant
+PHARMA
+STANDALONE FINANCIAL STATEMENTS
+Accumulated leave, which is expected to be utilised
+within the next 12 months, is treated as short-term
+employee benefit. The Company measures the expected
+cost of such absences as the additional amount that it
+expects to pay as a result of the unused entitlement that
+has accumulated at the reporting date.
+Short-term and other long-term employee
+benefits
+Termination benefits are recognised as an expense at
+the earlier of the date when the Company can no longer
+withdraw the offer of those benefits and when the
+entity recognises costs for a restructuring that is within
+the scope of Ind AS 37 and involves the payment of
+termination benefits.
+Termination benefits
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method with
+actuarial valuations being carried out at the end of each
+annual reporting period. The present value of the defined
+benefit obligation is determined by discounting the
+estimated future cash outflows by reference to market
+yields at the end of the reporting period on government
+bonds. The currency and term of the government bonds
+shall be consistent with the currency and estimated term
+of the post-employment benefit obligations. The current
+service cost of the defined benefit plan, recognised in
+the profit or loss as employee benefits expense, reflects
+the increase in the defined benefit obligation resulting
+from employee service in the current year, benefit
+changes, curtailments and settlements. Past service
+costs are recognised in profit or loss in the period of
+a plan amendment. The net interest cost is calculated
+by applying the discount rate to the net balance of
+the defined benefit obligation and the fair value of
+plan assets. This cost is included in employee benefit
+expense in profit or loss. Actuarial gains and losses arising
+from experience adjustments and changes in actuarial
+assumptions are charged or credited to OCI in the
+period in which they arise and is reflected immediately in
+retained earnings and is not reclassified to profit or loss.
+The Company operates a defined benefit gratuity plan
+which requires contribution to be made to a separately
+administered fund.
+Defined benefit plans
+Employee benefits
+relates to an asset, the Company deducts such grant
+amount from the carrying amount of the asset.
+q.
+Government grants
+Interest income from a financial asset is recognised when
+it is probable that the economic benefits will flow to the
+Company and the amount of income can be measured
+reliably. Interest income is accrued on a time basis,
+by reference to the principal outstanding and at the
+effective interest rate applicable, which is the rate that
+exactly discounts estimated future cash receipts through
+the expected life of the financial asset to that asset's net
+carrying amount on initial recognition.
+Dividend income is recognised when the Company's right
+to receive the payment is established, which is generally
+when shareholders approve the dividend.
+Dividend and interest income
+Royalty revenue is recognised on an accrual basis in
+accordance with the substance of the relevant agreement
+(provided that it is probable that economic benefits will
+flow to the Company and the amount of revenue can be
+measured reliably). Royalty arrangements that are based
+on production, sales and other measures are recognised
+by reference to the underlying arrangement.
+Royalties
+Revenue from services rendered is recognised in the
+profit or loss as the underlying services are performed.
+Upfront non-refundable payments received are deferred
+and recognised as revenue over the expected period over
+which the related services are expected to be performed.
+Rendering of services
+products, the Company considers its historical experience
+of sales returns, levels of inventory in the distribution
+channel, estimated shelf life, product discontinuances,
+price changes of competitive products, and the
+introduction of competitive new products, to the extent
+each of these factors impact the Company's business
+and markets. With respect to new products introduced
+by the Company, such products have historically been
+either extensions of an existing line of product where
+the Company has historical experience or in therapeutic
+categories where established products exist and are sold
+either by the Company or the Company's competitors.
+p.
+O.
+88
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+ANNUAL REPORT 2017-18
+k.
+Cash and cash equivalents
+Investments in the nature of equity in subsidiaries
+and associates
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits are
+expected from their use. Gain or loss arising on such
+de-recognition is recognised in profit or loss, and are
+measured as the difference between the net disposal
+proceeds, if any, and the carrying amount of respective
+intangible assets as on the date of de-recognition.
+De-recognition of intangible assets
+The estimated useful life and amortisation method are
+reviewed at the end of each reporting period, with the
+effect of any changes in estimate being accounted for on
+a prospective basis.
+The estimated useful life and the amortisation method
+for intangible assets with a finite useful life are reviewed
+at the end of each reporting period, with the effect of any
+changes in estimate being accounted for on a prospective
+basis.
+The estimated useful lives for Product related intangibles
+and Other intangibles ranges from 5 to 20 years.
+assets that are not available for use are amortised from
+the date they are available for use.
+g.
+f.
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+Amortisation is recognised on a straight-line basis over
+the estimated useful lives of intangible assets. Intangible
+Subsequent expenditures are capitalised only when they
+increase the future economic benefits embodied in the
+specific asset to which they relate. All other expenditures,
+including expenditures on internally generated goodwill
+and brands, are recognised in the statement of profit and
+loss as incurred.
+The consideration for acquisition of intangible asset
+which is based on reaching specific milestone that
+are dependent on the Company's future activity is
+recognised only when the activity requiring the payment
+is performed.
+Acquired research and development intangible assets
+which are under development, are recognised as In-
+Process Research and Development assets ("IPR&D").
+IPR&D assets are not amortised, but evaluated for
+potential impairment on an annual basis or when there
+are indications that the carrying value may not be
+recoverable. Any impairment charge on such IPR&D
+assets is recognised in profit or loss. Intangible assets
+relating to products under development, other intangible
+assets not available for use and intangible assets having
+indefinite useful life are tested for impairment annually,
+or more frequently when there is an indication that the
+assets may be impaired. All other intangible assets are
+tested for impairment when there are indications that the
+carrying value may not be recoverable.
+Payments to third parties that generally take the form
+of up-front payments and milestones for in-licensed
+products, compounds and intellectual property are
+capitalised since the probability of expected future
+economic benefits criterion is always considered to be
+satisfied for separately acquired intangible assets.
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable
+to preparing the asset for its intended use. Other
+development expenditure is recognised in profit or loss as
+incurred.
+⚫ the Company intends to and has sufficient resources/
+ability to complete development and to use or sell the
+asset.
+⚫ future economic benefits are probable; and
+⚫ the product or process is technically and commercially
+feasible;
+⚫ development costs can be measured reliably;
+Expenditure on research activities undertaken with the
+prospect of gaining new scientific or technical knowledge
+and understanding are recognised as an expense when
+incurred. Development activities involve a plan or design
+for the production of new or substantially improved
+products and processes. An internally-generated
+intangible asset arising from development is recognised if
+and only if all of the following have been demonstrated:
+Research and development
+The Company has elected to recognise its investments
+in equity instruments in subsidiaries and associates at
+cost in the separate financial statements in accordance
+with the option available in Ind AS 27, 'Separate Financial
+Statements'. Impairment policy applicable on such
+investments is explained in Note 2.2.g.
+Intangible assets that are acquired by the Company and
+that have finite useful lives are measured at cost less
+accumulated amortisation and accumulated impairment
+losses, if any. Subsequent expenditures are capitalised
+only when they increase the future economic benefits
+embodied in the specific asset to which they relate.
+Impairment of non-financial assets
+The recoverable amount of an asset or cash generating
+unit (as defined below) is the greater of its value in use
+and its fair value less costs to sell. In assessing value in
+use, the estimated future cash flows are discounted to
+their present value using a pre-tax discount rate that
+reflects current market assessments of the time value
+of money and the risks specific to the asset or the
+cash generating unit for which the estimates of future
+cash flows have not been adjusted. For the purpose of
+impairment testing, assets are grouped together into
+the smallest group of assets that generates cash inflows
+• Debt instruments and equity instruments at fair value
+through profit or loss (FVTPL)
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+⚫ Debt instruments at amortised cost
+For purposes of subsequent measurement, financial
+assets are classified in four categories:
+Subsequent measurement
+or convention in the market place (regular way trades)
+are recognised on the date the Company commits to
+purchase or sale the financial assets.
+82
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+81
+All financial assets are recognised initially at fair value
+plus, in the case of financial assets not recorded at fair
+value through profit or loss, transaction costs that are
+attributable to the acquisition of the financial asset.
+Purchases or sales of financial assets that require delivery
+of assets within a time frame established by regulation
+Initial recognition and measurement
+Financial assets
+A financial instrument is any contract that gives rise to
+a financial asset of one entity and a financial liability or
+equity instrument of another entity.
+Financial instruments
+Non-current assets (and disposal groups) classified as
+held for sale are measured at the lower of their carrying
+amount and fair value less costs to sell. Non-current
+assets are not depreciated or amortised.
+Non-current assets and disposal groups are classified as
+held for sale if their carrying amount will be recovered
+principally through a sale transaction rather than
+through continuing use. This condition is regarded as
+met only when the asset (or disposal group) is available
+for immediate sale in its present condition subject
+only to terms that are usual and customary for sales
+of such asset (or disposal group) and its sale is highly
+probable. Management must be committed to the sale,
+which should be expected to qualify for recognition
+as a completed sale within one year from the date of
+classification.
+Non-current assets held for sale
+In respect of other asset, impairment losses recognised
+in prior periods are assessed at each reporting date
+for any indications that the loss has decreased or no
+longer exists. An impairment loss is reversed if there
+has been a change in the estimates used to determine
+the recoverable amount. An impairment loss is reversed
+only to the extent that the asset's carrying amount does
+not exceed the carrying amount that would have been
+determined, net of depreciation or amortisation, if no
+impairment loss had been recognised.
+An impairment loss is recognised in the profit or loss
+if the estimated recoverable amount of an asset or its
+cash generating unit is lower than its carrying amount.
+Impairment losses recognised in respect of cash
+generating units are allocated to reduce the carrying
+amount of the other assets in the unit on a pro-rata basis.
+from continuing use that are largely independent of the
+cash inflows of other assets or groups of assets (the "cash
+generating unit").
+i.
+h.
+The carrying amounts of the Company's non-financial
+assets are reviewed at each reporting date to determine
+whether there is any indication of impairment. If any such
+indication exists, then the asset's recoverable amount
+is estimated in order to determine the extent of the
+impairment loss, if any.
+Intangible assets
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-controlling
+interest in the acquiree, over the fair value of the
+Company's share of identifiable net assets acquired.
+Goodwill is measured at cost less accumulated
+impairment losses.
+Goodwill and Intangible assets
+Goodwill
+Items of property, plant and equipment acquired through
+exchange of non-monetary assets are measured at fair
+value, unless the exchange transaction lacks commercial
+substance or the fair value of either the asset received or
+asset given up is not reliably measurable, in which case
+the acquired asset is measured at the carrying amount of
+the asset given up.
+An item of property, plant and equipment is derecognised
+upon disposal or when no future economic benefits are
+expected to arise from the continued use of the asset.
+Any gain or loss arising on the disposal or retirement of
+an item of property, plant and equipment is determined
+as the difference between the sales proceeds and the
+carrying amount of property, plant and equipment and is
+recognised in profit or loss.
+When parts of an item of property, plant and equipment
+have different useful lives, they are accounted for as
+separate items (major components) of property, plant and
+equipment.
+Assets in the course of construction for production,
+supply or administrative purposes are carried at cost, less
+any recognised impairment loss. Cost includes purchase
+price, borrowing costs if capitalisation criteria are met
+and directly attributable cost of bringing the asset to
+its working condition for the intended use. Subsequent
+expenditures are capitalised only when they increase
+the future economic benefits embodied in the specific
+asset to which they relate. Such assets are classified
+to the appropriate categories of property, plant and
+equipment when completed and ready for intended use.
+Depreciation of these assets, on the same basis as other
+assets, commences when the assets are ready for their
+intended use.
+Items of property, plant and equipment are stated in
+balance sheet at cost less accumulated depreciation and
+accumulated impairment losses, if any. Freehold land is
+not depreciated.
+Property, plant and equipment
+d.
+Operating segments are reported in a manner consistent
+with the internal reporting provided to the chief
+operating decision maker. The chief operating decision
+maker of the Company is responsible for allocating
+resources and assessing performance of the operating
+segments.
+Segment reporting
+Non-monetary items that are measured in terms of
+historical cost in foreign currency are measured using the
+exchange rates at the date of initial transaction.
+• exchange differences on transactions entered into in
+order to hedge certain foreign currency risks (see note
+2.2.i below for hedging accounting policies).
+• exchange differences on foreign currency borrowings
+relating to assets under construction for future
+productive use, which are included in the cost of those
+assets when they are regarded as an adjustment to
+interest costs on those foreign currency borrowings
+(see note 2.2.r).
+On initial recognition, transactions in currencies other
+than the Company's functional currency (foreign
+currencies) are translated at exchange rates at the dates
+of the transactions. Monetary assets and liabilities
+denominated in foreign currencies at the reporting
+date are translated into the functional currency at the
+exchange rate at that date. Exchange differences arising
+on the settlement of monetary items or on translating
+monetary items at rates different from those at which
+they were translated on initial recognition during the
+period or in previous period are recognised in profit or
+loss in the period in which they arise except for:
+Foreign currency
+The operating cycle is the time between the acquisition
+of assets for processing and their realisation in cash and
+cash equivalents. The Company has identified twelve
+months as its operating cycle.
+ANNUAL REPORT 2017-18
+STANDALONE FINANCIAL STATEMENTS
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2018
+b.
+C.
+• There is no unconditional right to defer the settlement
+of the liability for at least twelve months after the
+reporting period
+The Company classifies all other liabilities as non-current.
+Deferred tax assets and liabilities are classified as non-
+current assets and liabilities.
+Cash and cash equivalent in the balance sheet comprise
+cash at banks and on hand and short-term deposits with
+an original maturity of three months or less, which are
+subject to an insignificant risk of changes in value.
+Depreciation is recognised on the cost of assets (other
+than freehold land and Capital work-in-progress) less
+their residual values on straight-line method over their
+useful lives as indicated in Part C of Schedule II of the
+Companies Act, 2013. Leasehold improvements are
+depreciated over period of the lease agreement or the
+useful life, whichever is shorter. Depreciation methods,
+79
+PHARMA
+Notes to the Standalone Financial Statements
+Software for internal use, which is primarily acquired
+from third-party vendors and which is an integral part
+of a tangible asset, including consultancy charges for
+implementing the software, is capitalised as part of the
+related tangible asset. Subsequent costs associated with
+maintaining such software are recognised as expense as
+incurred. The capitalised costs are amortised over the
+lower of the estimated useful life of the software and the
+remaining useful life of the tangible fixed asset.
+10
+2-5
+5-10
+Furniture and fixtures
+Office equipment
+Vehicles
+operating lease
+15
+Plant and equipment given under
+3-20
+Plant and equipment
+• Equity instruments measured at fair value through
+other comprehensive income (FVTOCI)
+30
+Buildings other than Factory Buildings
+Factory Buildings
+60
+30
+60-99
+No. of years
+Asset Category
+Leasehold land
+The estimated useful lives are as follows:
+useful lives and residual values are reviewed at the end of
+each reporting period, with the effect of any changes in
+estimate accounted for on a prospective basis.
+e.
+80
+for the year ended March 31, 2018
+Buildings given under operating lease
+Debt instruments at amortised cost
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+a)
+(ii) Cash flow hedges
+Changes in fair value of the designated portion
+of derivatives that qualify as fair value hedges are
+recognised in profit or loss immediately, together with
+any changes in the fair value of the hedged asset or
+liability that are attributable to the hedged risk.
+Fair value hedges
+(i)
+Hedges that meet the strict criteria for hedge accounting
+are accounted for, as described below:
+effective throughout the financial reporting periods for
+which they were designated.
+At the inception of a hedge relationship, the Company
+formally designates and documents the hedge
+relationship to which the Company wishes to apply
+hedge accounting and the risk management objective and
+strategy for undertaking the hedge. The documentation
+includes the Company's risk management objective and
+strategy for undertaking hedge, the hedging/economic
+relationship, the hedged item or transaction, the nature
+of the risk being hedged, hedge ratio and how the entity
+will assess the effectiveness of changes in the hedging
+instrument's fair value in offsetting the exposure to
+changes in the hedged item's fair value or cash flows
+attributable to the hedged risk. Such hedges are expected
+to be highly effective in achieving offsetting changes in
+fair value or cash flows and are assessed on an ongoing
+basis to determine that they actually have been highly
+• Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable to
+a particular risk associated with a recognised asset
+or liability or a highly probable forecast transaction
+or the foreign currency risk in an unrecognised firm
+commitment.
+• Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+For the purpose of hedge accounting, hedges are
+classified as:
+Any gains or losses arising from changes in the fair value
+of derivatives are taken directly to profit or loss, except
+for the effective portion of cash flow hedges, which is
+recognised in OCI and later reclassified to profit or loss
+when the hedge item affects profit or loss or treated
+as basis adjustment if a hedged forecast transaction
+subsequently results in the recognition of a non-financial
+asset or non-financial liability.
+Initial recognition and subsequent measurement
+The Company uses derivative financial instruments,
+such as forward currency contracts, full currency swap,
+options and interest rate swaps to hedge its foreign
+currency risks and interest rate risks respectively. Such
+derivative financial instruments are initially recognised
+at fair value on the date on which a derivative contract
+is entered into and are subsequently re-measured at fair
+value at the end of each reporting period. Derivatives are
+carried as financial assets when the fair value is positive
+and as financial liabilities when the fair value is negative.
+Derivative financial instruments and hedge ac-
+counting
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+The Company determines classification of financial
+assets and liabilities on initial recognition. After initial
+recognition, no reclassification is made for financial
+assets which are equity instruments and financial
+liabilities. For financial assets which are debt instruments,
+a reclassification is made only if there is a change in the
+business model for managing those assets. Changes to
+the business model are expected to be infrequent. The
+Company's senior management determines change in the
+business model as a result of external or internal changes
+which are significant to the Company's operations. Such
+changes are evident to external parties. A change in
+the business model occurs when the Company either
+begins or ceases to perform an activity that is significant
+to its operations. If the Company reclassifies financial
+assets, it applies the reclassification prospectively from
+the reclassification date which is the first day of the
+immediately next reporting period following the change
+in business model. The Company does not restate any
+previously recognised gains, losses (including impairment
+gains or losses) or interest.
+Reclassification of financial assets
+Derivatives embedded in non-derivative host contracts
+that are not financial assets within the scope of Ind
+AS 109 are accounted for as separate derivatives and
+recorded at fair value if their economic characteristics
+and risks are not closely related to those of the host
+contracts and the host contracts are not held for trading
+or designated at fair value though profit or loss. These
+embedded derivatives are measured at fair value with
+changes in fair value recognised in profit or loss, unless
+designated as effective hedging instruments.
+Embedded derivatives
+A financial liability is derecognised when the obligation
+under the liability is discharged or cancelled or expires.
+When an existing financial liability is replaced by another
+from the same lender on substantially different terms,
+or the terms of an existing liability are substantially
+modified, such an exchange or modification is treated
+as the derecognition of the original liability and the
+recognition of a new liability. The difference between the
+carrying amount of the financial liability derecognised and
+the consideration paid and payable is recognised in profit
+or loss.
+Derecognition
+the issuance of the guarantee. If not designated as at
+FVTPL, are subsequently measured at the higher of the
+amount of loss allowance determined as per impairment
+requirements of Ind AS 109 and the amount initially
+recognised less cumulative amount of income recognised.
+Financial guarantee contracts are those contracts that
+require a payment to be made to reimburse the holder
+for a loss it incurs because the specified debtor fails to
+make a payment when due in accordance with the terms
+of a debt instrument. Financial guarantee contracts are
+recognised initially as a liability at fair value, adjusted
+for transaction costs that are directly attributable to
+The effective portion of changes in the fair value of the
+hedging instrument is recognised in OCI in the cash
+flow hedge reserve, while any ineffective portion is
+recognised immediately in profit or loss. The Company
+uses forward currency contracts as hedges of its
+exposure to foreign currency risk in forecast transactions
+and firm commitments. Amounts recognised as OCI are
+transferred to profit or loss when the hedged transaction
+affects profit or loss, such as when a forecast sale occurs.
+When the hedged item is the cost of a non-financial asset
+or non-financial liability, the amounts recognised as OCI
+are transferred to the initial carrying amount of the non-
+financial asset or liability.
+If the hedging instrument expires or is sold, terminated
+or exercised or if its designation as a hedge is revoked,
+or when the hedge no longer meets the criteria for
+hedge accounting, any cumulative gain or loss previously
+recognised in OCI remains separately in equity until the
+forecast transaction occurs or the foreign currency firm
+commitment is met. When a forecast transaction is no
+longer expected to occur, the gain or loss accumulated in
+equity is recognised immediately in profit or loss.
+Treasury shares
+The Company has created an Employee Benefit
+Trust (EBT) for providing share-based payment to its
+employees. The Company uses EBT as a vehicle for
+distributing shares to employees under the employee
+remuneration schemes. The Company treats EBT as its
+extension and shares held by EBT are treated as treasury
+shares.
+The factors that the Company considers in determining
+the allowance for slow moving, obsolete and other non-
+saleable inventory include estimated shelf life, planned
+product discontinuances, price changes, ageing of
+inventory and introduction of competitive new products,
+to the extent each of these factors impact the Company's
+business and markets. The Company considers all these
+factors and adjusts the inventory provision to reflect its
+actual experience on a periodic basis
+A 'debt instrument' is measured at the amortised cost if
+both the following conditions are met:
+Net realisable value is the estimated selling price in the
+ordinary course of business, less the estimated costs of
+completion and costs necessary to make the sale.
+Cost of work-in-progress and finished goods comprises
+direct material, direct labour and an appropriate
+proportion of variable and fixed overhead expenditure,
+the latter being allocated on the basis of normal
+operating capacity.
+Cost of raw materials and packing materials, stock-in-
+trade, stores and spares includes cost of purchases and
+other costs incurred in bringing the inventories to its
+present location and condition.
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade, stores and
+spares and finished goods are measured at the lower of
+cost and net realisable value. The cost of all categories of
+inventories is based on the weighted average method.
+Inventories
+Amounts due from lessees under finance leases are
+recorded as receivables at the Company's net investment
+in the leases. Finance lease income is allocated to
+accounting periods so as to reflect a constant periodic
+rate of return on the Company's net investment
+outstanding in respect of the leases.
+the carrying amount of the leased asset and recognised
+over the lease term on the same basis as rental income.
+Contingent rents are recognised as revenue in the period
+in which they are earned.
+I.
+Rental income from operating lease is generally
+recognised on a straight-line basis over the term of the
+relevant lease. Where the rentals are structured solely
+to increase in line with expected general inflation to
+compensate for the Company's expected inflationary cost
+increases, such increases are recognised in the year in
+which such benefits accrue. Initial direct costs incurred in
+negotiating and arranging an operating lease are added to
+Company as a lessor
+Financial guarantee contracts
+Operating lease payments are generally recognised as
+an expense in the profit or loss on a straight-line basis
+over the lease term. Where the rentals are structured
+solely to increase in line with expected general inflation
+to compensate for the lessor's expected inflationary cost
+increases, such increases are recognised in the year in
+which such benefits accrue. Contingent rentals arising
+under operating leases are also recognised as expenses in
+the periods in which they are incurred.
+Company as a lessee
+j.
+Leases
+The Company recognises a liability to make dividend
+distributions to equity holders of the Company when the
+distribution is authorised and the distribution is no longer
+at the discretion of the Company. As per the corporate
+laws in India, a distribution is authorised when it is
+approved by the shareholders. A corresponding amount is
+recognised directly in equity.
+Dividend distribution to equity holders of the
+Company
+86
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+85
+Own equity instruments that are reacquired (treasury
+shares) are deducted from equity. No gain or loss is
+recognised in profit or loss on the purchase, sale, issue or
+cancellation of the Company's own equity instruments.
+Consideration paid or received shall be recognised
+directly in equity.
+Finance leases are capitalised at the commencement of
+the lease at the inception date fair value of the leased
+assets or, if lower, at the present value of the minimum
+lease payments. The corresponding liability to the
+lessor is included in the balance sheet as a finance lease
+obligation. Lease payments are apportioned between
+finance charges and reduction of the lease liability so as
+to achieve a constant rate of interest on the remaining
+balance of the liability. Finance charges are recognised
+in profit or loss as finance costs. Contingent rentals are
+recognised as expenses in the periods in which they are
+incurred.
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using the
+EIR method. Amortised cost is calculated by taking into
+account any discount or premium on acquisition and
+fees or costs that are an integral part of the EIR. The EIR
+amortisation is included as finance costs in the profit
+or loss.
+A lease that transfers substantially all the risks and
+rewards incidental to ownership to the lessee is classified
+as a finance lease. All other leases are classified as
+operating leases.
+Financial liabilities subsequently measured at am-
+ortised cost
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+STANDALONE FINANCIAL STATEMENTS
+ANNUAL REPORT 2017-18
+A financial asset (or, where applicable, a part of a financial
+asset or part of a group of similar financial assets) is
+primarily derecognised (i.e. removed from the Company's
+balance sheet) when:
+Derecognition
+Equity instruments included within the FVTPL category
+are measured at fair value with all changes recognised in
+the profit or loss.
+If the Company decides to classify an equity instrument
+as at FVTOCI, then all fair value changes on the
+instrument, including foreign exchange gain or loss and
+excluding dividends, are recognised in the OCI. There is
+no recycling of the amounts from OCI to profit or loss,
+even on sale of investment. However, the Company may
+transfer the cumulative gain or loss within equity.
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which are held
+for trading are classified as at FVTPL. For all other equity
+instruments, the Company may make an irrevocable
+election to present subsequent changes in the fair
+value in OCI. The Company makes such election on an
+instrument-by-instrument basis. The classification is
+made on initial recognition and is irrevocable.
+Equity instruments
+Debt instruments included within the FVTPL category are
+measured at fair value with all the changes in the profit or
+loss.
+In addition, the Company may elect to designate a debt
+instrument, which otherwise meets amortised cost or
+FVTOCI criteria, as at FVTPL. However, such election
+is allowed only if doing so reduces or eliminates a
+measurement or recognition inconsistency (referred to as
+'accounting mismatch').
+FVTPL is a residual category for debt instruments. Any
+debt instrument, which does not meet the criteria for
+categorisation as at amortised cost or as FVTOCI, is
+classified as at FVTPL.
+Debt instrument at FVTPL
+at fair value. Fair value movements are recognised in
+the other comprehensive income (OCI). However, the
+Company recognises interest income, impairment losses
+and reversals and foreign exchange gain or loss in the
+profit or loss. On derecognition of the asset, cumulative
+gain or loss previously recognised in OCI is reclassified
+from the equity to profit or loss. Interest earned whilst
+holding FVTOCI debt instrument is reported as interest
+income using the EIR method.
+Debt instruments included within the FVTOCI category
+are measured initially as well as at each reporting date
+The objective of the business model is achieved
+both by collecting contractual cash flows and selling
+the financial assets, and
+b)
+A 'debt instrument' is measured as at FVTOCI if both of
+the following criteria are met:
+Debt instrument at FVTOCI
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost
+is calculated by taking into account any discount or
+premium on acquisition and fees or costs that are an
+integral part of the EIR. The EIR amortisation is included
+in Other Income in the profit or loss. The losses arising
+from impairment are recognised in the profit or loss.
+Contractual terms of the asset give rise on specified
+dates to cash flows that are solely payments of
+principal and interest (SPPI) on the principal amount
+outstanding.
+Financial liabilities that are not held-for-trading and are
+not designated as at FVTPL are measured at amortised
+cost in subsequent accounting periods. The carrying
+amounts of financial liabilities that are subsequently
+measured at amortised cost are determined based on the
+effective interest rate (EIR) method. Interest expense that
+is not capitalised as part of costs of an asset is included in
+the 'Finance costs' line item in the profit or loss.
+b)
+The asset is held within a business model whose
+objective is to hold assets for collecting contractual
+cash flows, and
+• The contractual rights to receive cash flows from the
+asset have expired, or
+• The Company has transferred its rights to receive
+contractual cash flows from the asset or has assumed
+an obligation to pay the received cash flows in full
+without material delay to a third party under a 'pass-
+through' arrangement; and either (a) the Company has
+transferred substantially all the risks and rewards of the
+asset, or (b) the Company has neither transferred nor
+retained substantially all the risks and rewards of the
+asset, but has transferred control of the asset.
+The contractual terms of the instrument give rise
+on specified dates to cash flows that are SPPI on
+the principal amount outstanding.
+SUN SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Financial liabilities designated upon initial recognition at
+fair value through profit or loss are designated as such
+at the initial date of recognition, and only if the criteria
+in Ind AS 109 are satisfied. For instruments not held-for-
+trading financial liabilities designated as at FVTPL, fair
+value gains/losses attributable to changes in own credit
+risk are recognised in OCI, unless the recognition of
+the effects of changes in the liability's credit risk in OCI
+would create or enlarge an accounting mismatch in profit
+or loss, in which case these effects of changes in credit
+risk are recognised in profit or loss. These gains/ loss are
+not subsequently transferred to profit or loss. All other
+changes in fair value of such liability are recognised in the
+statement of profit or loss.
+for the year ended March 31, 2018
+Notes to the Standalone Financial Statements
+PHARMA
+84
+83
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL when the
+financial liability is held for trading or is designated upon
+initial recognition as at fair value through profit or loss.
+Financial liabilities are classified as held for trading if they
+are incurred principally for the purpose of repurchasing
+in the near term or on initial recognition it is part of a
+portfolio of identified financial instruments that the
+Company manages together and has a recent actual
+pattern of short-term profit-taking. This category also
+includes derivative financial instruments that are not
+designated as hedging instruments in hedge relationships
+as defined by Ind AS 109. Gains or losses on liabilities
+held for trading are recognised in the profit or loss.
+All financial liabilities are subsequently measured at
+amortised cost using the effective interest method or at
+FVTPL.
+Subsequent measurement
+When the Company has transferred its rights to receive
+cash flows from an asset or has entered into a pass-
+through arrangement, it evaluates if and to what extent
+it has retained the risks and rewards of ownership. When
+it has neither transferred nor retained substantially all
+of the risks and rewards of the asset, nor transferred
+control of the asset, the Company continues to recognise
+the transferred asset to the extent of the Company's
+continuing involvement. In that case, the Company also
+recognises an associated liability. The transferred asset
+and the associated liability are measured on a basis that
+reflects the rights and obligations that the Company has
+retained.
+All financial liabilities are recognised initially at fair value
+and, in the case of loans and borrowings and payables,
+net of directly attributable transaction costs.
+Initial recognition and measurement
+The Company's financial liabilities include trade and other
+payables, loans and borrowings including bank overdrafts,
+financial guarantee contracts and derivative financial
+instruments.
+In accordance with Ind AS 109, the Company applies
+expected credit loss (ECL) model for measurement and
+recognition of impairment loss on the Trade receivables
+or any contractual right to receive cash or another
+financial asset that result from transactions that are
+within the scope of Ind AS 18.
+Compound financial instruments
+Repurchase of the Company's own equity instruments
+is recognised and deducted directly in equity. No gain
+or loss is recognised in profit or loss on the purchase,
+sale, issue or cancellation of the Company's own equity
+instruments.
+An equity instrument is any contract that evidences a
+residual interest in the assets of an entity after deducting
+all of its liabilities. Equity instruments issued by the
+Company are recognised at the proceeds received, net of
+direct issue costs.
+Equity instruments
+Debt and equity instruments issued by the Company
+are classified as either financial liabilities or as equity
+in accordance with the substance of the contractual
+arrangements and the definitions of a financial liability
+and an equity instrument.
+Financial liabilities and equity instruments
+Classification as debt or equity
+on portfolio of its trade receivables. The provision matrix
+is based on its historically observed default rates over the
+expected life of the trade receivables and is adjusted for
+forward-looking estimates. At every reporting date, the
+historical observed default rates are updated and changes
+in the forward-looking estimates are analysed.
+The application of simplified approach does not require
+the Company to track changes in credit risk. Rather,
+it recognises impairment loss allowance based on
+lifetime ECLs at each reporting date, right from its initial
+recognition. As a practical expedient, the Company uses a
+provision matrix to determine impairment loss allowance
+The Company follows 'simplified approach' for
+recognition of impairment loss allowance on trade
+receivables or any contractual right to receive cash or
+another financial asset.
+The component parts of compound financial instruments
+(convertible notes) issued by the Company are classified
+separately as financial liabilities and equity in accordance
+with the substance of the contractual arrangements
+and the definitions of a financial liability and an equity
+instrument.
+Impairment of financial assets
+On derecognition of a financial asset in its entirety, the
+difference between the asset's carrying amount and the
+sum of the consideration received and receivable and the
+cumulative gain or loss that had been recognised in OCI
+and accumulated in equity is recognised in profit or loss if
+such gain or loss would have otherwise been recognised
+in profit or loss on disposal of that financial asset.
+(Consolidated)
+Ten-Year Financial Highlights
+E
+PHARMA
+SUN
+69,644
+CORPORATE OVERVIEW > Key Performance Indicators | Ten-Year Financial Highlights
+Particular
+Operating
+(*Million)
+FY10
+FY11
+FY12
+FY13
+FY14
+FY15
+FY13 FY14 FY15 FY16 FY17 FY18 FY19
+FY16
+FY17
+3
+The Company had adopted Ind AS accounting standard w.e.f April 1, 2016 with prior period restated from April 1, 2015. Hence, FY16 onwards the
+financials are reported as per Ind-AS and are not strictly comparable with previous years.
+FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
+* During FY14, the Company issued bonus shares in the ratio of one equity share of *1 for every share held.
+31,415
+FY18
+45,394
+45,457
+FY10 FY11 FY12 FY13
+FY14
+FY15
+FY16 FY17
+* During FY16, the Company's equity shares have increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with
+the Company, wherein 0.80 equity share of *1 each of the Company have been allotted to the shareholders of RLL for every 1.00 share of *5
+each held by them.
+FY18 FY19
+FY15 FY16 FY17 FY18 FY19
+Carrying value of property, plant & equipment and other
+intangible assets
+Adjusted earning per share (post exceptional items)*
+(per share)
+FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
+FY10
+FY11 FY12
+ུསྶ
+* During FY11, each equity share of *5 was split into five equity shares of *1 each.
+FY10 FY11 FY12 FY13 FY14
+(* Million)
+FY19
+7,042 10,418 19,550 23,025
+427
+556 1,178
+6,616 9,862 18,373
+Revenue from
+4,449
+362
+4,088
+783
+22,242
+23,138
+1,679
+21,459
+22,489
+1,819
+20,669
+19,847
+718
+19,129
+(excluding depreciation)
+c) % of sales
+6.0
+6.0
+5.6
+6.3
+6.5
+7.2
+8.3
+7.6
+8.6
+Net profit after minority interest
+6.9
+3,313
+236
+3,077
+performance
+2,083
+159
+38,086 57,279
+80,195
+112,999
+160,804 273,920 284,870 315,784
+264,895
+290,659
+operations
+Total income
+42.123
+Net profit for
+13,470
+60,827
+18,161
+84,910
+26,567
+116,880 166,326 279,397 291,453 322,016 273,282 300,914
+29,831 31,415 45,394 45,457 69,644 20,957 26,654
+the year (after
+minority interest)
+R&D expenditure
+2,242
+a) Capital
+b) Revenue
+300,914
+Discussion and Analysis
+273,282
+82183
+02
+03
+04
+07
+08
+STATUTORY REPORTS
+Management
+Leadership Team
+он
+Board's Report
+28
+NO
+Corporate Governance
+55
+он
+Business Responsibility Report
+74
+10
+Board of Directors
+Managing Director's Message
+Ten-Year Financial Highlights
+Financial position
+H
+N
+Ho
+ANNUAL REPORT 2018-19
+OH
+CH3
+Fo
+O-Na H₂0
+OH
+SPECIALTY
+IN PROGRESS
+Sun Pharmaceutical Industries Ltd.
+Reaching People. Touching Lives.
+SUN
+PHARMA
+Contents
+CORPORATE OVERVIEW
+Key Performance Indicators
+FINANCIAL STATEMENTS
+Standalone
+84
+CH3
+(*Million)
+- 2,242
+3,313
+(*Million)
+42,123
+60,827
+84,910
+Total income
+(Million)
+116,880
+2
+Sun Pharmaceutical Industries Ltd.
+Key Performance Indicators
+(Consolidated)
+166,326
+279,397
+FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
+R&D investment
+291,453
+322,016
+15,328
+Reserve and surplus
+(*Million)
+Specialty in progress
+Annual Report 2018-19
+Consolidated
+156
+NOTICE
+H
+249
+O-NaH20
+Ho
+OH
+он
+OH
+H
+он
+OH
+OH
+он
+SPECIALTY IN PROGRESS
+We, at Sun Pharma, view our specialty business as an additional engine of
+sustainable growth and cashflows over the long term. The specialty business
+also represents our important initiative to move up the pharmaceutical
+value chain and usher in enhanced innovation for our business. Over the
+preceding few years, we have sharpened our focus to develop a strong
+portfolio of specialty products, funding their clinical trials and establishing
+the requisite front-end capabilities for this business.
+We have built our specialty expertise with industry-leading know-how,
+highly skilled team and best-in-class technologies. We will continue to build
+a global specialty pipeline with focused research and development (R&D)
+investments. The principal focus areas for our specialty portfolio include
+segments like dermatology, ophthalmology and oncology.
+Our specialty initiatives are progressing well and we crossed some important
+milestones during the year. We commercialised ILUMYATM, YONSATM
+and XELPROSTM in the US in FY19. ILUMYATM was also commercialised
+in Australia while ILUMETRITM was launched in Germany by our partner
+during the year. CEQUAT is expected to be launched in the US in FY20.
+We have now entered the commercialisation phase for most of our specialty
+products. At the same time we continue to, invest in development of our
+specialty pipeline, and in evaluating new markets for commercialising our
+specialty products.
+1
+Equity share capital
+Sun Pharma also received approval from the Australian
+Therapeutic Goods Administration (TGA) for ILUMYATM
+during the year. The product has already been
+commercialised in Australia.
+Property, plant &
+equipment and other
+intangible assets
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Regulatory compliance in pharmaceutical
+manufacturing
+Regulatory standards for pharmaceutical facilities have
+been undergoing constant upgradation over the past many
+years, with regulatory agencies demanding the highest
+quality products. To adhere to these stringent standards,
+pharmaceutical companies need to have an unwavering
+focus on 24x7 compliance, which, in turn, raises compliance
+costs. Ensuring that each manufacturing facility remains
+compliant has become a key priority for pharmaceutical
+companies worldwide.
+During the year, many of our facilities underwent successful
+audits by multiple regulatory agencies, including the USFDA.
+Our Halol facility, which was impacted by cGMP deviations
+in FY15, was cleared by the USFDA in June 2018. With this
+clearance, new approvals from this facility for the US market
+have started coming through gradually.
+Restructuring and rationalisation
+We also continue to focus on optimising our costs, given
+the tough phase that the global generics industry is passing
+through. We strive to optimally utilise our resources with
+greater involvement of people, to make the Company
+more efficient.
+We continue to emphasise on optimising our manufacturing
+footprint, to strike a pragmatic balance between current
+costs and future capacity requirements. We are constantly
+evaluating our generics R&D investments, to ensure a
+reasonable return on investment.
+Overall outlook
+Our consistent focus is on growing each of our businesses
+faster than the market in which they operate. Our global
+specialty initiatives will supplement this objective as an
+additional growth engine.
+Although the US generics industry continues to face
+pricing pressure, the industry has started responding to
+these challenges by rationalising product portfolios and
+discontinuing non-remunerative products. These steps have
+been taken to ensure that generics products are able to
+generate reasonable returns to manufacturers.
+In US, generics account for more than 80% of overall
+pharmaceutical volumes. In Western Europe, generics
+account for a significant portion of volumes as well. In Japan,
+the government has been encouraging higher generics
+penetration to bring down healthcare costs. All emerging
+markets rely on branded generics and/or pure generics to
+service their healthcare needs, given the lower purchasing
+power of their population. Hence, generics will continue
+to be an integral part of the solution to control global
+healthcare costs and has an important role to play in overall
+healthcare management.
+Sun Pharma continues to invest in the generics business,
+with a focus on developing differentiated complex generics
+and building a product pipeline across markets. Our strong
+positioning in the global generics space will ensure that we
+remain an important player in the generics industry.
+We are gradually ramping up our global specialty business.
+One of key ailments that we are targeting is psoriasis. As per
+a EvaluatePharma report, the size of the US psoriasis market
+was estimated at ~US$ 10 Billion in 2018 and is expected
+to grow at 9% CAGR till 2024. The report also estimates the
+global market for psoriasis at ~US$ 15 Billion in 2018, which
+is likely to grow at 9% CAGR to US$ 24.6 Billion by 2024.
+We have started commercialising ILUMYAT, useful for
+treating moderate-to-severe plaque psoriasis in various
+markets globally. It was launched in the US in October 2018
+and in Australia in December 2018. Our partner in Europe
+has commenced a phased launch of the product, starting
+with Germany, under the ILUMETRITM brand name.
+The product has received a good response from doctors
+in these markets. We continue to evaluate other potential
+markets for commercialising ILUMYA™.
+We recently announced long-term clinical insights for
+ILUMYATM at the 2019 American Academy of Dermatology
+conference. The data presented showed sustained skin
+clearance in some patients living with moderate-to-severe
+plaque psoriasis after three years of ongoing treatment with
+ILUMYATM. The product was also well tolerated with low
+rates of adverse events. We believe that these positive
+data points will enable the product to do well in the large
+US$ 15 Billion global psoriasis market.
+Our initiatives in the specialty ophthalmology segment are
+also gaining momentum. Our dry eye specialty product,
+CEQUAT, is expected to be commercialised in the US in
+FY20. We have recently launched XELPROSTM (latanoprost
+ophthalmic emulsion) 0.005% in the US for the reduction
+of elevated intraocular pressure in patients with open-angle
+glaucoma or ocular hypertension.
+Sun Pharma will continue to invest in branding and
+promotion of its various specialty products. R&D investments
+for funding clinical trials of some of the specialty products
+are also likely to continue in future.
+Annual Report 2018-19
+In January 2019, we announced the closure of the acquisition
+of Pola Pharma, a Japanese pharmaceutical company.
+Pola Pharma's portfolio primarily comprises dermatology
+products and it also has two manufacturing facilities in
+Japan with capabilities to manufacture topical products
+and injectables. This acquisition strengthens Sun Pharma's
+presence in Japan and accelerates its access to the Japanese
+dermatology market.
+Enhancing presence in Japan
+• We have also initiated investments in the development
+of new indications for ILUMYA™. Although the clinical
+trials for these new indications will require upfront
+investments, a successful outcome of the trials will
+significantly expand the addressable market for
+ILUMYATM globally.
+Specialty in progress
+CORPORATE OVERVIEW > Managing Director's Message
+5
+developing the long-term specialty pipeline are expected
+to continue. We are also investing in developing specific
+products for emerging markets and other non-US
+developed markets.
+Progress on specialty initiatives
+We have further progressed in our global specialty initiatives,
+which commenced a few years ago. We view the specialty
+business as an additional engine of sustainable growth
+and cash flows over the long term. It is also an initiative to
+move up the pharmaceutical value chain and bring in more
+innovation to our business. We have allocated significant
+resources over the past few years in building this business
+for acquiring specialty products, funding their clinical trials
+and establishing the requisite front-end capabilities. We have
+now entered the commercialisation phase for most of our
+specialty products.
+The focus areas for our specialty portfolio include segments
+like dermatology, ophthalmology and oncology.
+Specialty products - Approvals and launches in FY19
+We crossed many important milestones for our specialty
+business in FY19 with USFDA approvals for four specialty
+products and commercialisation of three specialty products.
+Some of the key highlights for the year were:
+.
+For FY20, we expect our consolidated revenues to grow by
+low-to-mid teens, while R&D investments are estimated at
+~8-9% of sales.
+•
+•
+We launched ILUMYATM (tildrakizumab-asmn) 100 mg/mL
+in the US for treating moderate-to-severe psoriasis in
+October 2018. We have received a good initial response
+for the product and we expect ramp-up in ILUMYA™
+sales in the US over the next few years. We have also
+commenced a direct-to-consumer advertising initiative
+for ILUMYATM in the US.
+Our European partner, Almirall, received approval for
+tildrakizumab from the European Commission (EC) under
+the ILUMETRI™ brand name. Almirall has commenced
+commercialisation of ILUMETRI™ in Europe in a phased
+manner across different markets.
+During the year we received USFDA approvals for
+CEQUAT (cyclosporine ophthalmic solution 0.09%).
+CEQUAT increases tear production in patients with dry
+eyes. It is the first and only approved dry eye treatment
+to combine cyclosporine A with nanomicellar technology.
+CEQUAT will be commercialised in the US in FY20.
+In May 2018, Sun Pharma received USFDA approval for
+YONSAⓇ (abiraterone acetate), a novel formulation in
+•
+combination with methylprednisolone to treat patients
+with metastatic castration-resistant prostate cancer
+(mCRPC). This approval has further strengthened Sun
+Pharma's oncology portfolio in the US. The product was
+commercialised in the US in the first quarter of FY19.
+During the year, Sun Pharma also received USFDA
+approval for its New Drug Application (NDA) of
+XELPROS™ (latanoprost ophthalmic emulsion 0.005%)
+used for the reduction of elevated intraocular pressure
+in patients with open-angle glaucoma or ocular
+hypertension. XELPROS™ is the first and only form of
+latanoprost that is not formulated with benzalkonium
+chloride (BAK), a commonly used preservative in topical
+ocular preparations. XELPROST was launched in the US
+in January 2019.
+In July 2018, Sun Pharma announced the USFDA
+approval for INFUGEM™ (gemcitabine in 0.9%
+sodium chloride injection), for intravenous use in a
+ready-to-administer (RTA) bag. INFUGEM™ uses a
+proprietary technology, which allows cytotoxic oncology
+products to be pre-mixed in a sterile environment
+and supplied to the prescribers in RTA infusion bags.
+These RTA bags will provide greater safety, by preventing
+problems of over-dosing or under-dosing and eliminating
+contamination risk. INFUGEM™ was commercialised in
+the US in April 2019.
+In August 2018, Sun Pharma launched KAPSPARGO
+SPRINKLE™ (metoprolol succinate) extended-release
+sprinkle formulation in the US. The product will help
+treat hypertension, angina pectoris (chest pain) and heart
+failure. These extended-release coated pellets can be
+sprinkled over soft food or administered via a nasogastric
+tube to facilitate long-term, once-daily administration for
+patients who experience difficulty while swallowing.
+.
+Our talented team of employees will be the key driver of
+all the above initiatives. We are grateful to our Board of
+Directors for their guidance and support.
+We are thankful for your support as a shareholder and we
+hope that you will continue to repose your confidence in us
+in future as well.
+Warm regards,
+Dr. Pradeep Sanghvi
+Executive Vice-President,
+Global Head - Oral Solids
+Dr. Sapna Purohit
+Senior Vice-President,
+Head of Human Resources
+Senior Vice-President - Corporate
+Relations and CSR, India Regulatory Affairs
+Aalok Shanghvi
+Senior Vice-President -
+Emerging Markets and Global R&D
+C. S. Muralidharan
+CEO, North America
+Chief Financial Officer
+Davinder Singh
+Senior Vice-President,
+Sun Pharmaceutical Global Operations
+S. Kalyanasundaram
+Whole-time Director
+Head - India and Emerging Markets
+Specialty in progress
+SUN
+PHARMA
+Anilkumar Jain
+CEO, API Business
+R&D is the lifeline of our business as it enables us to develop
+and launch differentiated generics as well as innovative
+specialty products. It is a key determinant of our future
+growth and profitability. Our efforts to build a global
+specialty pipeline mandates that we keep investing in R&D.
+Our R&D investments for the year were ~20 Billion,
+targeted mainly at developing complex generics and specialty
+products. Given the intensely competitive nature of the US
+generics market, we continue to be disciplined in identifying
+future R&D projects for the generics market. Investments for
+Abhay Gandhi
+Sun Pharmaceutical Industries Ltd.
+Dilip Shanghvi
+Managing Director
+Sun Pharmaceutical Industries Ltd.
+Specialty in progress
+CORPORATE OVERVIEW > Board of Directors
+Board of Directors
+Israel Makov
+Chairman
+Dilip S. Shanghvi
+Managing Director
+Sailesh T. Desai
+Whole-time Director
+Leadership Team
+Sudhir V. Valia
+Kalyanasundaram Subramanian
+Whole-time Director
+Vivek Chaand Sehgal
+Non-executive and
+Independent Director
+Rekha Sethi
+Non-executive and
+Independent Director
+Gautam Doshi
+Non-executive and
+Independent Director
+7
+*Designation changed from Whole-time Director to Non-executive and Non-Independent Director w.e.f. May 29, 2019
+Annual Report 2018-19
+Whole-time Director*
+Reserve and surplus
+R&D
+We recorded 8% decline in our India formulations business,
+however, our adjusted growth, excluding one-offs, was 5%.
+1,036
+1,036
+2,071
+2,071
+2,407
+2,399
+2,399
+2,399
+shares (in Million)
+Adjusted earning
+5.6
+7.5
+11.0
+12.4
+13.1
+18.9
+18.9
+29.0
+8.7
+1,036
+207
+Number of
+Stock information
+1,036 1,036
+1,036
+77,254 93,798 121,322
+23,340 45,473 54,269
+1,036
+148,862
+75,763
+2,071
+183,178
+86,505
+2,071
+278,009
+2,407 2,399 2,399 2,399
+327,418 363,997 380,742 411,691
+143,616 187,212 217,315 238,073 271,424
+(at cost/ deemed cost)
+Carrying value of
+15,328 25,214 29,295
+45,145
+11.1
+49,827 96,848 124,130
+property, plant &
+equipment and other
+intangible assets
+Investments
+Net current assets
+31,664 26,557 22,129
+28,542 58,622 76,749
+24,116
+86,618
+27,860 35,028 18,299
+126,969 135,488 167,973
+11,919 71,429 79,025
+150,666 117,716 137,296
+149,404 157,111 172,919
+per share (post
+exceptional items)
+(in *)*
+* During FY11, each equity share of ₹5 was split into five equity shares of *1 each.
+* During FY14, the Company issued bonus shares in the ratio of one equity share of 1 for every share held.
+* During FY16, the Company's equity shares have increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with
+the Company, wherein 0.80 equity share of *1 each of the Company have been allotted to the shareholders of RLL for every 1.00 share of *5
+each held by them.
+The Company had adopted Ind AS accounting standard w.e.f April 1, 2016 with prior period restated from April 1, 2015. Hence, FY16 onwards the
+financials are reported as per Ind-AS and are not strictly comparable with previous years.
+Annual Report 2018-19
+4
+Sun Pharmaceutical Industries Ltd.
+Managing Director's Message
+SUN
+Diluted (in *)*
+PHARMA
+Dear Shareholders,
+The global pharmaceutical industry is at crossroads. The type
+of drugs being developed by the industry and the role played
+by technology are being juxtaposed against the value that
+healthcare delivers to patients. On one hand, the industry is
+developing new generation specialty drugs in gene therapy,
+monoclonal anti-bodies and immunotherapy categories,
+which have improved medical outcomes for patients; but on
+the other hand, the industry is facing increasing resistance
+from governments and payors over escalating drug prices,
+which impacts healthcare budgets. The need of the hour is
+for innovation and affordability to co-exist for the long-term
+benefit of all stakeholders.
+The scenario for the generics industry is markedly different
+from its much larger branded counterpart. Generics pricing
+in the US, the largest and most important of all generics
+markets, has been under severe pressure over the last three
+years. The business profitability in the US generics market
+has suffered significantly over this period. Although there
+are early signs of price stabilisation for some products, the
+overall US generics pricing continues to be competitive.
+The industry has started responding to these changes
+through a combination of multiple initiatives. These include
+a focus on developing innovative and differentiated products,
+withdrawal of non-remunerative products and persistent
+emphasis on cost control.
+With business becoming more challenging, it has become
+imperative for companies to be more innovative and identify
+new engines of growth. Sun Pharma's significant investments
+in building a global specialty business is an important
+step in this direction. This initiative will enable us to build
+an additional engine of growth as well as move up the
+pharmaceutical value chain over the long term.
+Our unwavering focus on cost control continues, with these
+efforts spread across generic R&D projects, rationalisation
+of manufacturing footprint and other areas. These steps
+will release resources which can be deployed in the
+specialty business.
+FY19 highlights
+We are back on the growth path with our FY19 revenues
+growing by 10% to 287 Billion. We have recorded steady
+growth in all the markets where we operate.
+Operational performance
+Revenues in the US increased 22% to 107 Billion and
+accounted for 37% of our consolidated revenues for FY19.
+The key growth drivers include increase in generics sales,
+incremental contribution from specialty product launches
+and a favourable foreign exchange rate. Our subsidiary,
+Taro recorded a marginal growth in overall revenues to
+US$ 670 Million for the year. This was mainly the result
+of more intense competition among manufacturers, new
+entrants to the market, buying consortium pressures
+and a higher abbreviated new drug application (ANDA)
+approval rate from the United States Food and Drug
+Administration (USFDA).
+Dilip Shanghvi, Managing Director
+We grew by 11% in emerging markets for the year.
+This growth was broad based across various markets.
+Our sales in the rest of world (ROW) markets grew by 16%
+for the year, driven by increased sales in some Western
+European markets and partly driven by the Pola Pharma Inc.
+(Pola Pharma) acquisition in Japan.
+11.1
+29.0
+Earnings per
+65.2
+17.5
+25.7
+28.8
+15.2
+18.9
+18.9
+29.0
+8.7
+8.7
+share-Basic (in *)*
+Earning per share-
+65.2
+17.5
+25.7
+28.8
+15.2
+18.9
+18.9
+11.1
+Dr. Azadar H. Khan
+3,953.6
+ICAI Firm Registration No. : 324982E/E300003
+25,437.3
+29
+(c) Provisions
+2,691.5
+4,572.6
+28
+(b) Other current liabilities
+18,567.4
+36,878.7
+27
+(iii) Other financial liabilities
+25,554.2
+20,889.4
+(b) total outstanding dues of creditors other than micro and small enterprises
+105.5
+659.8
+45
+26,527.5
+Total current liabilities
+132,718.3
+125,584.2
+C. S. MURALIDHARAN
+Chief Financial Officer
+DILIP S. SHANGHVI
+Managing Director
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Mumbai, May 28, 2019
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+(a) total outstanding dues of micro and small enterprises
+Chartered Accountants
+As per our report of even date
+The accompanying notes are an integral part of the standalone financial statements
+TOTAL EQUITY AND LIABILITIES
+367,918.1
+377,141.3
+144,692.0
+148,705.2
+Total liabilities
+For S RBC & CO LLP
+SUDHIR V. VALIA
+Wholetime Director
+(ii) Trade payables
+44,280.5
+(i) Borrowings
+(a) Financial liabilities
+(2) Current liabilities
+Total non-current liabilities
+(c) Provisions
+(b) Other non-current liabilities
+(ii) Other financial liabilities
+(i) Borrowings
+(a) Financial liabilities
+(1) Non-current liabilities
+Liabilities
+Total equity
+(b) Other equity
+(a) Equity share capital
+Equity
+EQUITY AND LIABILITIES
+Particulars
+Notes
+As at
+March 31, 2019
+95
+* in Million
+26
+3,451.8
+19,107.8
+15,986.9
+1,570.7
+25
+181.0
+24
+15,646.9
+9.1
+52,138.1
+14,225.0
+10.2
+2222
+2,399.3
+220,826.8
+223,226.1
+228,436.1
+2,399.3
+226,036.8
+21
+20
+22
+As at
+March 31, 2018
+23
+SUNIL R. AJMERA
+Company Secretary
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+Annual Report 2018-19
+Deferred tax
+Current tax
+(VIII) Tax expense
+(VII) Profit before tax (V - VI)
+(VI) Exceptional item
+12,307.5
+19,338.3
+(V) Profit before exceptional item and tax (III - IV)
+89,035.4
+96,408.2
+Total expenses (IV)
+28,321.0
+33,023.5
+36
+Other expenses
+4,872.4
+5,529.5
+Total tax expense (VIII)
+56 (3)
+12,143.8
+9,505.0
+664.3
+165.0
+A) Items that will not be reclassified to the statement of profit or loss
+Gain/(loss) on remeasurement of the defined benefit plans
+a.
+(X) Other comprehensive income
+(IX) Profit for the year (VII - VIII)
+3,056.4
+8,166.0
+3 & 4
+(253.9)
+(274.1)
+(987.0)
+38
+20.2
+15.5
+38
+2,802.5
+7,194.5
+(971.5)
+Depreciation and amortisation expense
+3,883.1
+5,409.2
+90,062.5
+103,032.1
+30
+March 31, 2018
+Year ended
+* in Million
+Year ended
+March 31, 2019
+Notes
+31
+(IV) Expenses
+(II) Other income
+(1) Revenue from operations
+Particulars
+PHARMA
+SUN
+for the year ended March 31, 2019
+Standalone Statement of Profit and Loss
+96 Sun Pharmaceutical Industries Ltd.
+(III) Total income (I + II)
+as at March 31, 2019
+12,714.4
+115,746.5
+35
+Finance costs
+16,250.0
+15,713.4
+34
+Employee benefits expense
+1,592.6
+(2,513.0)
+11,280.4
+33
+12,015.1
+11,968.5
+Purchases of stock-in-trade
+22,101.2
+27,277.1
+32
+Cost of materials consumed
+101,342.9
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+Income tax on above
+Standalone Balance Sheet
+Specialty in progress
+93
+FINANCIAL STATEMENTS > Standalone
+Specialty in progress
+A company's internal financial control over financial
+reporting with reference to these standalone Ind AS financial
+statements is a process designed to provide reasonable
+assurance regarding the reliability of financial reporting and
+the preparation of financial statements for external purposes
+in accordance with generally accepted accounting principles.
+A company's internal financial control over financial
+reporting with reference to these standalone Ind AS financial
+statements includes those policies and procedures that (1)
+pertain to the maintenance of records that, in reasonable
+detail, accurately and fairly reflect the transactions and
+dispositions of the assets of the company; (2) provide
+reasonable assurance that transactions are recorded as
+necessary to permit preparation of financial statements in
+accordance with generally accepted accounting principles,
+and that receipts and expenditures of the company are
+being made only in accordance with authorisations of
+management and directors of the company; and (3) provide
+reasonable assurance regarding prevention or timely
+detection of unauthorised acquisition, use, or disposition of
+the company's assets that could have a material effect on the
+financial statements.
+MEANING OF INTERNAL FINANCIAL CONTROLS
+OVER FINANCIAL REPORTING WITH REFERENCE
+TO THESE FINANCIAL STATEMENTS
+We believe that the audit evidence we have obtained is
+sufficient and appropriate to provide a basis for our audit
+opinion on the internal financial controls over financial
+reporting with reference to these standalone Ind AS
+financial statements.
+Our audit involves performing procedures to obtain audit
+evidence about the adequacy of the internal financial
+controls over financial reporting with reference to these
+standalone Ind AS financial statements and their operating
+effectiveness. Our audit of internal financial controls over
+financial reporting included obtaining an understanding
+of internal financial controls over financial reporting with
+reference to these standalone Ind AS financial statements,
+assessing the risk that a material weakness exists, and testing
+and evaluating the design and operating effectiveness of
+internal control based on the assessed risk. The procedures
+selected depend on the auditor's judgement, including the
+assessment of the risks of material misstatement of the
+financial statements, whether due to fraud or error.
+Our responsibility is to express an opinion on the Company's
+internal financial controls over financial reporting with
+reference to these standalone Ind AS financial statements
+based on our audit. We conducted our audit in accordance
+with the Guidance Note on Audit of Internal Financial
+Controls Over Financial Reporting (the “Guidance Note”)
+and the Standards on Auditing as specified under section
+143(10) of the Act, to the extent applicable to an audit of
+internal financial controls and, both issued by the Institute
+of Chartered Accountants of India. Those Standards and
+the Guidance Note require that we comply with ethical
+requirements and plan and perform the audit to obtain
+reasonable assurance about whether adequate internal
+financial controls over financial reporting with reference to
+these standalone Ind AS financial statements was established
+and maintained and if such controls operated effectively in all
+material respects.
+AUDITOR'S RESPONSIBILITY
+The Company's Management is responsible for establishing
+and maintaining internal financial controls based on the
+internal control over financial reporting criteria established
+by the Company considering the essential components
+of internal control stated in the Guidance Note on Audit
+of Internal Financial Controls Over Financial Reporting
+issued by the Institute of Chartered Accountants of India.
+These responsibilities include the design, implementation
+and maintenance of adequate internal financial controls
+that were operating effectively for ensuring the orderly
+and efficient conduct of its business, including adherence
+to the Company's policies, the safeguarding of its assets,
+the prevention and detection of frauds and errors, the
+accuracy and completeness of the accounting records, and
+the timely preparation of reliable financial information, as
+required under the Act.
+MANAGEMENT'S RESPONSIBILITY FOR INTERNAL
+FINANCIAL CONTROLS
+REPORT ON THE INTERNAL FINANCIAL CONTROLS
+UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
+143 OF THE COMPANIES ACT, 2013 ("THE ACT")
+We have audited the internal financial controls over financial
+reporting of Sun Pharmaceutical Industries Limited ("the
+Company") as of March 31, 2019 in conjunction with our
+audit of the standalone Ind AS financial statements of the
+Company for the year ended on that date.
+PHARMA
+SUN
+Annexure 2 to the Independent Auditor's Report of even date on
+the Standalone Ind AS Financial Statements of Sun Pharmaceutical
+Industries Limited
+92 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+INHERENT LIMITATIONS OF INTERNAL FINANCIAL
+CONTROLS OVER FINANCIAL REPORTING WITH
+REFERENCE TO THESE FINANCIAL STATEMENTS
+Because of the inherent limitations of internal financial
+controls over financial reporting with reference to these
+standalone Ind AS financial statements, including the
+possibility of collusion or improper management override
+of controls, material misstatements due to error or fraud
+may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial
+reporting with reference to these standalone Ind AS financial
+statements to future periods are subject to the risk that
+the internal financial control over financial reporting with
+reference to these standalone Ind AS financial statements
+may become inadequate because of changes in conditions, or
+that the degree of compliance with the policies or procedures
+may deteriorate.
+OPINION
+In our opinion, the Company has, in all material respects,
+adequate internal financial controls over financial reporting
+with reference to these standalone Ind AS financial
+statements and such internal financial controls over
+financial reporting with reference to these standalone Ind
+AS financial statements were operating effectively as at
+March 31, 2019, based on the internal control over financial
+reporting criteria established by the Company considering
+the essential components of internal control stated in the
+Guidance Note on Audit of Internal Financial Controls Over
+Financial Reporting issued by the Institute of Chartered
+Accountants of India.
+For S RBC & CO LLP
+(1) Non-current assets
+ASSETS
+Particulars
+* in Million
+PHARMA
+SUN
+as at March 31, 2019
+Standalone Balance Sheet
+Place of Signature: Mumbai
+Date: May 28, 2019
+Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+Date: May 28, 2019
+Place of Signature: Mumbai
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No.: 324982E/E300003
+Chartered Accountants
+94
+(a) Property, plant and equipment
+Membership No.: 105754
+ICAI Firm Registration No. : 324982E/E300003
+Various years from
+2003-04 to 2015-16
+Various years from
+2003-04 to 2016-17
+Various years from
+2003-04 to 2013-14
+Various years from
+2008-09 to 2014-15
+Various years from
+2010-11 to 2012-13
+Commissioner (Appeals)
+Penalty and Interest
+CESTAT
+High Court
+Commissioner (Appeals)
+52.16
+Various years from
+2006-07 to 2015-16
+Customs, Excise and Service
+Tax Appellate Tribunal
+(CESTAT), Delhi
+CESTAT
+Excise Duty,
+Interest and Penalty
+Excise Duty,
+Interest and Penalty
+Excise Duty,
+Interest and Penalty
+Customs Duty,
+Customs Act, 1962
+Customs Act, 1962
+The Central Excise Act, 1944
+The Central Excise Act, 1944
+The Central Excise Act, 1944
+Service Tax
+The Central Excise Act, 1944
+1,143.83
+41.68
+38.36
+115.97
+For S RBC & CO LLP
+Chartered Accountants
+(xvi) According to the information and explanations given to
+us, the provisions of section 45-IA of the Reserve Bank
+of India Act, 1934 are not applicable to the Company.
+into any non-cash transactions with directors or
+persons connected with him as referred to in section
+192 of the Act.
+(xv)According to the information and explanations given
+by management, the Company has not entered
+(xiv) According to the information and explanations given to
+us and on an overall examination of the balance sheet,
+the Company has not made any preferential allotment or
+private placement of shares or fully or partly convertible
+debentures during the year under review and hence,
+reporting requirements under clause 3(xiv) of the Order
+are not applicable to the Company and hence not
+commented upon.
+(xiii) According to the information and explanations given by
+management, transactions with the related parties are
+in compliance with section 177 and 188 of Companies
+Act, 2013 where applicable and the details have
+been disclosed in the notes to the standalone Ind AS
+financial statements, as required by the applicable
+accounting standards.
+91
+FINANCIAL STATEMENTS > Standalone
+per PAUL ALVARES
+Partner
+Specialty in progress
+(xi) According to the information and explanations given by
+management, managerial remuneration has been paid
+/ provided in accordance with the requisite approvals
+mandated by the provisions of section 197 read with
+Schedule V to the Companies Act, 2013.
+explanations given by management, we report that
+no fraud by the Company or no material fraud on the
+Company by the officers and employees of the Company
+has been noticed or reported during the year.
+(x) Based upon the audit procedures performed for the
+purpose of reporting true and fair view of the financial
+statements and according to the information and
+(ix) In our opinion and according to the information and
+explanations given by management, the Company has
+utilized the monies raised by way of term loans for the
+purposes for which they were raised. The Company did
+not raise any money by way of initial public offer / further
+public offer / debt instruments.
+viii) In our opinion and according to the information and
+explanations given by management, the Company has
+not defaulted in repayment of loans or borrowing to a
+financial institution, bank or Government. The Company
+did not have any outstanding dues to debenture holders
+during the year.
+*Amount includes interest till the date of demand and are net of advances paid/adjusted under protest.
+Customs Duty,
+Penalty and Interest
+21.62
+(xii) In our opinion, the Company is not a nidhi company.
+Therefore, the provisions of clause 3(xii) of the Order
+are not applicable to the Company and hence not
+commented upon.
+(b) Capital work-in-progress
+(c) Goodwill
+(d) Other Intangible assets
+1,094.3
+3,027.6
+15
+(iii) Cash and cash equivalents
+447.6
+52,714.4
+50,314.7
+14
+(ii) Trade receivables
+2,479.5
+13
+(i) Investments
+21,356.4
+27,926.2
+12
+272,166.0
+265,443.6
+3,498.1
+(iv) Bank balances other than (iii) above
+16
+380.1
+(v) Loans
+367,918.1
+377,141.3
+TOTAL ASSETS
+95,752.1
+111,697.7
+Total current assets
+15,845.5
+16,164.3
+11
+19
+3,315.0
+8,458.0
+18
+(vi) Other financial assets
+520.5
+458.4
+2,947.3
+17
+(c) Other current assets
+20,742.4
+21,101.2
+10
+47,092.1
+3
+As at
+March 31, 2018
+As at
+March 31, 2019
+Notes
+(b) Financial assets
+(a) Inventories
+(2) Current assets
+44,005.2
+Total non-current assets
+(i) Income tax assets (Net)
+(h) Deferred tax assets (Net)
+(iii) Other financial assets
+(ii) Loans
+(i) Investments
+(g) Financial assets
+(f) Investments in the nature of equity in subsidiaries
+(e) Intangible assets under development
+(j) Other non-current assets
+FINANCIAL STATEMENTS > Standalone
+4,562.5
+4
+7,517.0
+7,517.0
+9
+34.2
+489.7
+546.1
+879.3
+653.9
+10.0
+67822E
+8,303.9
+182,225.7
+5
+1,574.5
+1,862.9
+1,232.5
+1,484.1
+4
+1,208.0
+1,208.0
+175,907.7
+(57.7)
+(229.9)
+b. Gain (loss) on equity instrument through other comprehensive income
+Income tax on above
+Recognition of share-based payments to
+employees
+(1.0)
+(1.0)
+Issue of equity shares
+@ 0.0
+* (0.0)
+9.1
+9.1
+Transfer on exercise of share options
+25.4
+(25.4)
+Balance as at March 31, 2018
+2,399.3
+53,575.2
+11,929.1
+43.8
+7.5
+(3.4)
+(3.4)
+Dividend distribution tax
+(7,977.4)
+3,056.4
+3,056.4
+Other comprehensive income for the year
+^ 434.4
+44.0
+(10.1)
+72.0
+26.6
+34,779.3
+566.9
+3,490.8
+44.0
+(10.1)
+72.0
+26.6
+3,623.3
+Payment of dividend
+(7,977.4)
+Total comprehensive income for the year
+Profit for the year
+Profit for the year
+60.0
+3.8
+Issue of equity shares
+Balance as at March 31, 2019
+# 0.0
+2,399.3
+3.8
+53,575.2
+11,932.9
+43.8
+7.5
+34,779.3
+123,846.1
+26.1
+(8.2)
+1,485.9
+348.2
+228,436.1
+^ Represents remeasurements of the defined benefit plans
+(5.6)
+(5.6)
+Dividend distribution tax
+(4,791.6)
+(10.1)
+72.0
+223,226.1
+8,166.0
+Other comprehensive income for the year
+^ 107.3
+(33.9)
+1.9
+120,370.0
+8,166.0
+Total comprehensive income for the year
+(33.9)
+1.9
+1,413.9
+1,413.9
+348.2
+348.2
+1,837.4
+10,003.4
+Payment of dividend
+(4,791.6)
+8,273.3
+227,575.5
+(26.6)
+16.0
+Foreign
+currency
+translation
+reserve
+Debt
+instrument
+through
+OCI
+Equity
+instrument
+through
+OCI
+Retained
+earnings
+General
+reserve
+Capital
+redemption
+reserve
+Amalgamation
+reserve
+outstanding
+account
+Capital Securities
+reserve premium
+money
+pending
+allotment
+capital
+Share options
+Share
+application
+Equity
+share
+Particulars
+Reserve and surplus
+Other equity
+Other comprehensive income (OCI)
+Effective
+portion of
+in Million
+Total
+17,450.8
+210,124.7
+(26.6)
+16.0
+34,779.3 124,860.0
+7.5
+43.8
+26.4
+FINANCIAL STATEMENTS > Standalone
+36,124.4 11,894.6
+17,450.8
+53,575.2
+2,399.3
+Adjusted balance as at March 31, 2017
+Add - Transfer on merger [Refer Note 56 (11)]
+* 0.0
+2,399.3
+Balance as at March 31, 2017
+hedges
+cash flow
+* 0.0
+for the year ended March 31, 2019
+Standalone Statement of Changes in Equity
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+72.0
+2,173.4
+ICAI Firm Registration No.: 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+The accompanying notes are an integral part of the standalone financial statements
+As per our report of even date
+Diluted (in)
+Basic (in)
+(759.5)
+Earnings per equity share (face value per equity share - 1)
+Total other comprehensive income (A+B) (X)
+Total - (B)
+Income tax on above
+C. Foreign currency translation reserve [gain / (loss)]
+43.8
+7.5
+34,779.3
+124,860.0
+(XI) Total comprehensive income for the year (IX+X)
+* :* 7,177
+1,764.0
+1,837.4
+SUDHIR V. VALIA
+Wholetime Director
+SUNIL R. AJMERA
+Company Secretary
+C. S. MURALIDHARAN
+Chief Financial Officer
+DILIP S. SHANGHVI
+Managing Director
+Specialty in progress
+Mumbai, May 28, 2019
+Membership No. : 105754
+Partner
+88.5
+per PAUL ALVARES
+1.3
+3.4
+1.3
+3.4
+46
+3,623.3
+10,003.4
+566.9
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+@: 62,365
+# : 11,790
+The accompanying notes are an integral part of the standalone financial statements
+62.7
+Loans / Inter corporate deposits
+Given to
+Subsidiary companies
+Others
+Received back / matured from
+Subsidiary companies
+Others
+Purchase of investments
+Subsidiary companies
+Others
+Proceeds from sale / redemption of investments
+Subsidiary companies
+Others
+Bank balances not considered as cash and cash equivalents
+Fixed deposits/ margin money placed
+(2,934.3)
+(500.0)
+123.1
+Proceeds from disposal of property, plant and equipment and intangible assets
+intangible assets and intangible assets under development)
+(7,461.6)
+105.7
+15,677.5
+2,579.7
+(4,376.9)
+25.0
+Cash generated/ (used) in operations
+12,796.1
+(8,798.1)
+(320.0)
+Income tax paid (net of refund)
+(2,914.2)
+Net cash from (used) in operating activities (A)
+12,421.8
+(11,712.3)
+B.
+CASH FLOW FROM INVESTING ACTIVITIES
+Payments for purchase of property, plant and equipment (including capital work-in-progress,
+(5,967.1)
+(374.3)
+303.3
+820.0
+512.0
+(170,975.8)
+(1.0)
+(15.5)
+2.9
+b. Gain/(loss) on debt instrument through other comprehensive income
+Income tax on above
+(187.0)
+Income tax on above
+26.6
+535.2
+5.4
+Effective portion of gain/(loss) on designated portion of hedging instruments
+in a cash flow hedge
+B) Items that may be reclassified to the statement of profit or loss
+478.4
+73.4
+Total - (A)
+(23.2)
+18.2
+67.2
+(52.1)
+a.
+(4,012.0)
+11,894.6
+8,154.8
+0.0
+13,916.2
+(855.0)
+(168,061.1)
+8,580.4
+168,834.8
+12,384.5
+168,335.1
+(3,077.0)
+(1,048.9)
+Fixed deposits/ margin money matured
+3,173.0
+773.7
+Specialty in progress
+Interest received
+1,440.0
+Dividend received from
+Subsidiary companies
+4,764.5
+Others (March 31, 2019: 30,000; March 31, 2018: 24,000)
+0.0
+Net cash from investing activities (B)
+4,336.9
+1,192.0
+2013-14 to 2016-17
+(7,704.4)
+(5,385.3)
+Year ended
+March 31, 2019
+Year ended
+March 31, 2018
+A. CASH FLOW FROM OPERATING ACTIVITIES
+Profit before tax
+7,194.5
+2,802.5
+Adjustments for:
+Depreciation and amortisation expense
+5,529.5
+4,872.4
+Loss on sale/write off of property, plant and equipment and intangible assets, net
+Finance costs
+341.0
+63.7
+5,409.2
+3,883.1
+Interest income
+(1,293.6)
+Particulars
+* in Million
+PHARMA
+SUN
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+Annual Report 2018-19
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Mumbai, May 28, 2019
+(1,287.6)
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+SUNIL R. AJMERA
+Company Secretary
+DILIP S. SHANGHVI
+Managing Director
+SUDHIR V. VALIA
+Wholetime Director
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+97
+98 Sun Pharmaceutical Industries Ltd.
+Standalone Cash Flow Statement
+for the year ended March 31, 2019
+C. S. MURALIDHARAN
+Chief Financial Officer
+Dividend income on investments
+(8,909.3)
+(8,154.8)
+Operating profit/ (loss) before working capital changes
+Movements in working capital:
+(Increase)/ decrease in inventories
+(Increase)/ decrease in trade receivables
+Increase in other assets
+(Decrease)/ increase in trade payables
+Increase in other liabilities
+(Decrease)/ increase in provisions
+Net unrealised foreign exchange loss / (gain)
+(562.2)
+254.3
+5,202.8
+(328.5)
+11,681.1
+(145.2)
+(6,569.8)
+1,726.4
+1,698.5
+366.9
+(1,302.3)
+Provision in respect of losses of a subsidiary
+(1.0)
+Net gain arising on financial assets measured at fair value through profit or loss
+(2.0)
+(0.7)
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net loss on sale of financial assets measured at fair value through other comprehensive income
+(113.0)
+(95.8)
+0.1
+15.1
+Impairment in value of investment, net
+Gain on sale of investment in subsidiary
+Sundry balances written back, net
+Income recognised in respect of share based payments to employees
+(1,862.4)
+(1,328.0)
+(147.0)
+(135.7)
+(35.6)
+(142.0)
+Provision / write off / (reversal) for doubtful trade receivables / advances
+Joint Commissioner
+26.4
+Assistant/Additional /Senior Various years from
+500.7
+480.9
+In respect of building where the Company is entitled to
+the right of occupancy and use and disclosed as property,
+plant and equipment in the standalone Ind AS financial
+statements, we report that the instrument entitling the
+right of occupancy and use of building, are in the name of
+the Company as at the balance sheet date.
+(ii) The inventory has been physically verified by
+management during the year. In our opinion, the
+frequency of verification is reasonable. No material
+discrepancies were noticed on such physical verification.
+Inventories lying with third parties have been confirmed
+by them and no material discrepancies were noticed in
+respect of such confirmations.
+(iii) According to the information and explanations given
+to us, the Company has not granted any loans, secured
+or unsecured to companies, firms, Limited Liability
+Partnerships or other parties covered in the register
+maintained under section 189 of the Companies Act,
+2013. Accordingly, the provisions of clause 3(iii) (a), (b)
+and (c) of the Order are not applicable to the Company
+and hence not commented upon.
+5
+(iv) In our opinion and according to the information and
+explanations given to us, the Company has complied with
+the provisions of section 186 of the Act in respect of
+loans, making investments and providing guarantees and
+securities as applicable. During the year, the Company
+has not granted any loans to parties covered under
+section 185 of the Act.
+(v) The Company has not accepted any deposits within
+the meaning of Sections 73 to 76 of the Act and the
+Companies (Acceptance of Deposits) Rules, 2014 (as
+amended). Accordingly, the provisions of clause 3(v) of
+the Order are not applicable to the Company and hence
+not commented upon.
+(vi) We have broadly reviewed the books of account
+maintained by the Company pursuant to the rules made
+by the Central Government for the maintenance of cost
+records under section 148(1) of the Companies Act,
+2013, related to the manufacture of pharmaceutical
+products, and are of the opinion that prima facie, the
+specified accounts and records have been made and
+maintained. We have not, however, made a detailed
+examination of the same.
+(vii)(a) Undisputed statutory dues including provident
+fund, employees' state insurance, income-tax,
+sales-tax, service tax, duty of custom, duty of excise,
+value added tax, goods and service tax, cess and
+other statutory dues have generally been regularly
+deposited with the appropriate authorities though
+there has been a slight delay in a few cases.
+(b) According to the information and explanations given
+to us, no undisputed amounts payable in respect
+of provident fund, employees' state insurance,
+income-tax, service tax, sales-tax, duty of custom,
+duty of excise, value added tax, goods and service
+Annual Report 2018-19
+90
+The title deeds are in the name
+of erstwhile companies that
+were merged with the Company
+under relevant provisions of
+the Companies Act, 1956/2013
+in terms of approval of the
+Honorable High Courts of
+respective states.
+building located thereon
+Leasehold Land
+344.9
+358.4
+1.40
+FINANCIAL STATEMENTS > Standalone
+89
+Annexure 1 referred to in paragraph 1 under the heading "Report on Other
+Legal and Regulatory Requirements" of our report of even date
+RE: SUN PHARMACEUTICAL INDUSTRIES LIMITED ('THE COMPANY')
+i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation
+of fixed assets.
+(b) All fixed assets have not been physically verified by management during the year but there is a regular programme of
+verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets.
+No material discrepancies were noticed on such verification.
+(c) According to the information and explanations given by management, the title deeds of immovable properties,
+included in property, plant and equipment are held in the name of the Company, except for the following immovable
+properties for which registration of title deeds is in process:
+Type of asset
+Total number of cases
+Gross Block as on
+March 31, 2019
+(* Million)
+Net Block as on
+March 31, 2019
+(* Million)
+Remarks
+10
+Sun Pharmaceutical Industries Ltd.
+SUN
+Freehold Land including
+tax, cess and other statutory dues, where applicable were outstanding, at the year end, for a period of more than six
+months from the date they became payable.
+Year to which it pertains
+Various years from
+2007-08 to 2014-15
+Various years from
+1995-96 to 2011-12
+Various years from
+1999-00 to 2015-16
+Amount
+(* Million)*
+128.69
+17,048.74
+31.05
+Various years from
+1998-99 to 2015-16
+14.93
+Various years from
+5.62
+1998-99 to 2009-10
+High Court
+Various years from
+51.09
+1999-00 to 2010-11
+PHARMA
+Income Tax Appellate
+Tribunal (ITAT)
+Assistant /
+Additional/Senior Joint
+Commissioner
+Appellate Authority
+Commissioner (Appeals)
+Tribunal
+Sales Tax,
+(c) According to the records of the Company, the dues of income-tax, sales-tax, service tax, duty of custom, duty of
+excise, value added tax, goods and service tax and cess, wherever applicable and which have not been deposited on
+account of any dispute, are as follows:
+Interest and Penalty
+Sales Tax,
+Interest and Penalty
+Sales Tax,
+Interest and Penalty
+Service Tax
+Name of the Statute
+Nature of dues
+Forum where the dispute is
+pending
+The Central Excise Act, 1944
+Income Tax Act, 1961
+Sales Tax Act/VAT (Various States)
+Income Tax Act, 1961
+Sales Tax Act/VAT (Various States)
+Sales Tax Act/VAT (Various States)
+Sales Tax Act/VAT (Various States)
+Income Tax,
+Interest, and Penalty
+Income Tax and Interest
+Sales Tax,
+Interest and Penalty
+All financial assets are recognised initially at fair value
+plus, in the case of financial assets not recorded at fair
+value through profit or loss, transaction costs that are
+attributable to the acquisition of the financial asset.
+Purchases or sales of financial assets that require
+delivery of assets within a time frame established by
+SUN
+regulation or convention in the market place (regular
+way trades) are recognised on the date the Company
+commits to purchase or sale the financial assets.
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+104 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+PHARMA
+Initial recognition and measurement
+group of assets that generates cash inflows from
+continuing use that are largely independent of the
+cash inflows of other assets or groups of assets (the
+"cash-generating unit").
+A financial instrument is any contract that gives rise to
+a financial asset of one entity and a financial liability
+or equity instrument of another entity.
+Non-current assets (and disposal groups) classified
+as held for sale are measured at the lower of their
+carrying amount and fair value less costs to sell.
+Non-current assets are not depreciated or amortised.
+i. Financial instruments
+Non-current assets and disposal groups are classified
+as held for sale if their carrying amount will be
+recovered principally through a sale transaction
+rather than through continuing use. This condition
+is regarded as met only when the asset (or disposal
+group) is available for immediate sale in its present
+condition subject only to terms that are usual and
+customary for sales of such asset (or disposal group)
+and its sale is highly probable. Management must be
+committed to the sale, which should be expected to
+qualify for recognition as a completed sale within one
+year from the date of classification.
+h Non-current assets held for sale
+In respect of other asset, impairment losses
+recognised in prior periods are assessed at each
+reporting date for any indications that the loss
+has decreased or no longer exists. An impairment
+loss is reversed if there has been a change in the
+estimates used to determine the recoverable amount.
+An impairment loss is reversed only to the extent
+that the asset's carrying amount does not exceed the
+carrying amount that would have been determined,
+net of depreciation or amortisation, if no impairment
+loss had been recognised.
+An impairment loss is recognised in the profit or loss
+if the estimated recoverable amount of an asset or
+its cash generating unit is lower than its carrying
+amount. Impairment losses recognised in respect of
+cash-generating units are allocated to reduce the
+carrying amount of the other assets in the unit on a
+pro-rata basis.
+The recoverable amount of an asset or
+cash-generating unit (as defined below) is the greater
+of its value in use and its fair value less costs to sell.
+In assessing value in use, the estimated future cash
+flows are discounted to their present value using a
+pre-tax discount rate that reflects current market
+assessments of the time value of money and the
+risks specific to the asset or the cash-generating unit
+for which the estimates of future cash flows have
+not been adjusted. For the purpose of impairment
+testing, assets are grouped together into the smallest
+Subsequent measurement
+The carrying amounts of the Company's non-financial
+assets are reviewed at each reporting date to
+determine whether there is any indication of
+impairment. If any such indication exists, then the
+asset's recoverable amount is estimated in order to
+determine the extent of the impairment loss, if any.
+Financial assets
+For purposes of subsequent measurement, financial
+assets are classified in four categories:
+FVTPL is a residual category for debt instruments.
+Any debt instrument, which does not meet the criteria
+for categorisation as at amortised cost or as FVTOCI,
+is classified as at FVTPL.
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+FINANCIAL STATEMENTS > Standalone
+Equity instruments
+a debt instrument, which otherwise meets
+amortised cost or FVTOCI criteria, as at FVTPL.
+However, such election is allowed only if doing so
+reduces or eliminates a measurement or recognition
+inconsistency (referred to as 'accounting mismatch').
+Debt instruments included within the FVTPL category
+are measured at fair value with all the changes in the
+profit or loss.
+In addition, the Company may elect to designate
+Debt instrument at FVTPL
+of the asset, cumulative gain or loss previously
+recognised in OCI is reclassified from the equity to
+profit or loss. Interest earned whilst holding FVTOCI
+debt instrument is reported as interest income using
+the EIR method.
+Debt instruments included within the FVTOCI
+category are measured initially as well as at each
+reporting date at fair value. Fair value movements are
+recognised in the other comprehensive income (OCI).
+However, the Company recognises interest income,
+impairment losses & reversals and foreign exchange
+gain or loss in the profit or loss. On derecognition
+b) The contractual terms of the instrument give rise
+on specified dates to cash flows that are SPPI on
+the principal amount outstanding.
+a) The objective of the business model is achieved
+both by collecting contractual cash flows and
+selling the financial assets, and
+A 'debt instrument' is measured as at FVTOCI if both
+of the following criteria are met:
+Debt instrument at FVTOCI
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost
+is calculated by taking into account any discount or
+premium on acquisition and fees or costs that are
+an integral part of the EIR. The EIR amortisation
+is included in Other Income in the profit or loss.
+The losses arising from impairment are recognised in
+the profit or loss.
+b) Contractual terms of the asset give rise on
+specified dates to cash flows that are solely
+payments of principal and interest (SPPI) on the
+principal amount outstanding.
+whose objective is to hold assets for collecting
+contractual cash flows, and
+a) The asset is held within a business model
+A 'debt instrument' is measured at the amortised cost
+if both the following conditions are met:
+• Equity instruments measured at fair value through
+other comprehensive income (FVTOCI)
+Debt instruments and equity instruments at fair
+value through profit or loss (FVTPL)
+.
+• Debt instruments at amortised cost
+Standalone Cash Flow Statement
+(517.1)
+99
+(157,039.8)
+(114,929.5)
+(2,675.7)
+(2,836.9)
+(4,801.8)
+(7,981.4)
+(5.6)
+(3.4)
+(14,685.9)
+(2,721.0)
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which are
+held for trading are classified as at FVTPL. For all
+other equity instruments, the Company may make an
+irrevocable election to present subsequent changes
+in the fair value in OCI. The Company makes such
+election on an instrument-by-instrument basis.
+The classification is made on initial recognition and
+is irrevocable.
+978.0
+1,475.2
+(23.2)
+19.9
+3,027.6
+978.0
+2,072.8
+Notes:
+(22,655.1)
+(21,390.6)
+28,122.1
+117,554.1
+15,340.9
+155,882.9
+* in Million
+Particulars
+C. CASH FLOW FROM FINANCING ACTIVITIES
+Proceeds from issue of equity shares on exercise of stock options/ share application money received
+Proceeds from borrowings
+Subsidiary company
+Others
+Repayment of borrowings
+Subsidiary company
+Others
+for the year ended March 31, 2019
+Finance costs
+Dividend distribution tax
+Net cash used in financing activities (C)
+Net increase/ (decrease) in cash and cash equivalents (A+B+C)
+Cash and cash equivalents at the beginning of the year
+Effect of exchange differences on restatement of foreign currency cash and cash equivalents
+Cash and cash equivalents at the end of the year
+Year ended
+March 31, 2019
+Year ended
+March 31, 2018
+3.8
+9.1
+Dividend paid
+If the Company decides to classify an equity
+instrument as at FVTOCI, then all fair value changes
+on the instrument, including foreign exchange gain
+or loss and excluding dividends, are recognised in
+the OCI. There is no recycling of the amounts from
+OCI to profit or loss, even on sale of investment.
+However, the Company may transfer the cumulative
+gain or loss within equity.
+Financial liabilities subsequently measured at
+amortised cost
+Derecognition
+Notes to the Standalone Financial Statements
+108 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+Dividend distribution to equity holders of the Company
+The Company recognises a liability to make
+dividend distributions to equity holders of the
+Company when the distribution is authorised and
+Own equity instruments that are reacquired (treasury
+shares) are deducted from equity. No gain or loss
+is recognised in profit or loss on the purchase, sale,
+issue or cancellation of the Company's own equity
+instruments. Consideration paid or received shall be
+recognised directly in equity.
+The Company has created an Employee Benefit
+Trust (EBT) for providing share-based payment to its
+employees. The Company uses EBT as a vehicle for
+distributing shares to employees under the employee
+remuneration schemes. The Company treats EBT as
+its extension and shares held by EBT are treated as
+treasury shares.
+Treasury shares
+If the hedging instrument expires or is sold,
+terminated or exercised or if its designation as a
+hedge is revoked, or when the hedge no longer
+meets the criteria for hedge accounting, any
+cumulative gain or loss previously recognised in
+OCI remains separately in equity until the forecast
+transaction occurs or the foreign currency firm
+commitment is met. When a forecast transaction
+is no longer expected to occur, the gain or loss
+accumulated in equity is recognised immediately
+in profit or loss.
+The effective portion of changes in the fair value
+of the hedging instrument is recognised in OCI in
+the cash flow hedge reserve, while any ineffective
+portion is recognised immediately in profit or loss.
+The Company uses forward currency contracts
+as hedges of its exposure to foreign currency risk
+in forecast transactions and firm commitments.
+Amounts recognised as OCI are transferred
+to profit or loss when the hedged transaction
+affects profit or loss, such as when a forecast sale
+occurs. When the hedged item is the cost of a
+non-financial asset or non-financial liability, the
+amounts recognised as OCI are transferred to
+the initial carrying amount of the non-financial
+asset or liability.
+(ii) Cash flow hedges
+Changes in fair value of the designated portion
+of derivatives that qualify as fair value hedges
+are recognised in profit or loss immediately,
+together with any changes in the fair value of the
+hedged asset or liability that are attributable to
+the hedged risk.
+(i) Fair value hedges
+At the inception of a hedge relationship, the
+Company formally designates and documents the
+hedge relationship to which the Company wishes to
+apply hedge accounting and the risk management
+objective and strategy for undertaking the hedge.
+The documentation includes the Company's risk
+management objective and strategy for undertaking
+hedge, the hedging/economic relationship, the
+hedged item or transaction, the nature of the risk
+being hedged, hedge ratio and how the entity will
+assess the effectiveness of changes in the hedging
+instrument's fair value in offsetting the exposure to
+changes in the hedged item's fair value or cash flows
+attributable to the hedged risk. Such hedges are
+expected to be highly effective in achieving offsetting
+changes in fair value or cash flows and are assessed
+on an ongoing basis to determine that they actually
+have been highly effective throughout the financial
+reporting periods for which they were designated.
+Hedges that meet the strict criteria for hedge
+accounting are accounted for, as described below:
+Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable
+to a particular risk associated with a recognised
+asset or liability or a highly probable forecast
+transaction or the foreign currency risk in an
+unrecognised firm commitment.
+•
+• Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+For the purpose of hedge accounting, hedges
+are classified as:
+swap, options and interest rate swaps to hedge
+its foreign currency risks and interest rate risks
+respectively. Such derivative financial instruments
+are initially recognised at fair value on the date on
+which a derivative contract is entered into and are
+subsequently re-measured at fair value at the end
+of each reporting period. Derivatives are carried as
+financial assets when the fair value is positive and as
+financial liabilities when the fair value is negative.
+Any gains or losses arising from changes in the
+fair value of derivatives are taken directly to profit
+or loss, except for the effective portion of cash
+flow hedges, which is recognised in OCI and later
+reclassified to profit or loss when the hedge item
+affects profit or loss or treated as basis adjustment
+if a hedged forecast transaction subsequently
+results in the recognition of a non-financial asset or
+non-financial liability.
+107
+for the year ended March 31, 2019
+SUN
+PHARMA
+the distribution is no longer at the discretion of
+the Company. As per the corporate laws in India, a
+distribution is authorised when it is approved by the
+shareholders. A corresponding amount is recognised
+directly in equity.
+Specialty in progress
+Provisions are recognised when the Company has
+a present obligation (legal or constructive) as a
+m. Provisions, contingent liabilities and contingent
+assets
+For the purpose of the statement of cash flows, cash
+and cash equivalents consist of cash and short-term
+deposits, as defined above, net of outstanding bank
+overdrafts as they are considered an integral part of
+the Company's cash management.
+Cash and cash equivalent in the balance sheet
+comprise cash at banks and on hand and short-term
+deposits with an original maturity of three months
+or less, which are subject to an insignificant risk of
+changes in value.
+Cash and cash equivalents
+The factors that the Company considers in
+determining the allowance for slow moving, obsolete
+and other non-saleable inventory include estimated
+shelf life, planned product discontinuances, price
+changes, ageing of inventory and introduction of
+competitive new products, to the extent each of
+these factors impact the Company's business and
+markets. The Company considers all these factors and
+adjusts the inventory provision to reflect its actual
+experience on a periodic basis
+Net realisable value is the estimated selling
+price in the ordinary course of business, less the
+estimated costs of completion and costs necessary
+to make the sale.
+Cost of work-in-progress and finished goods
+comprises direct material, direct labour and an
+appropriate proportion of variable and fixed
+overhead expenditure.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+Cost of raw materials and packing materials,
+stock-in-trade, stores and spares includes cost of
+purchases and other costs incurred in bringing the
+inventories to its present location and condition.
+Amounts due from lessees under finance leases
+are recorded as receivables at the Company's net
+investment in the leases. Finance lease income is
+allocated to accounting periods so as to reflect a
+constant periodic rate of return on the Company's net
+investment outstanding in respect of the leases.
+k. Inventories
+I.
+Rental income from operating lease is generally
+recognised on a straight-line basis over the term of the
+relevant lease. Where the rentals are structured solely
+to increase in line with expected general inflation to
+compensate for the Company's expected inflationary
+cost increases, such increases are recognised in the
+year in which such benefits accrue. Initial direct costs
+incurred in negotiating and arranging an operating
+lease are added to the carrying amount of the
+leased asset and recognised over the lease term on
+the same basis as rental income. Contingent rents
+are recognised as revenue in the period in which
+they are earned.
+Company as a lessor
+Operating lease payments are generally recognised as
+an expense in the profit or loss on a straight-line basis
+over the lease term. Where the rentals are structured
+solely to increase in line with expected general
+inflation to compensate for the lessor's expected
+inflationary cost increases, such increases are
+recognised in the year in which such benefits accrue.
+Contingent rentals arising under operating leases are
+also recognised as expenses in the periods in which
+they are incurred.
+Finance leases are capitalised at the commencement
+of the lease at the inception date fair value of the
+leased assets or, if lower, at the present value of
+the minimum lease payments. The corresponding
+liability to the lessor is included in the balance sheet
+as a finance lease obligation. Lease payments are
+apportioned between finance charges and reduction
+of the lease liability so as to achieve a constant rate
+of interest on the remaining balance of the liability.
+Finance charges are recognised in profit or loss as
+finance costs. Contingent rentals are recognised as
+expenses in the periods in which they are incurred.
+A leased asset is depreciated over the useful life of
+the asset. However, if there is no reasonable certainty
+that the Company will obtain ownership by the end
+of the lease term, the asset is depreciated over the
+shorter of the estimated useful life of the asset and
+the lease term.
+Company as a lessee
+A lease that transfers substantially all the risks and
+rewards incidental to ownership to the lessee is
+classified as a finance lease. All other leases are
+classified as operating leases.
+j. Leases
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade, stores
+and spares and finished goods are measured at the
+lower of cost and net realisable value. The cost of all
+categories of inventories is based on the weighted
+average method.
+Equity instruments included within the FVTPL
+category are measured at fair value with all changes
+recognised in the profit or loss.
+FINANCIAL STATEMENTS > Standalone
+The Company determines classification of financial
+assets and liabilities on initial recognition. After initial
+recognition, no reclassification is made for financial
+assets which are equity instruments and financial
+liabilities. For financial assets which are debt
+instruments, a reclassification is made only if there is
+a change in the business model for managing those
+assets. Changes to the business model are expected
+to be infrequent. The Company's senior management
+determines change in the business model as a result
+of external or internal changes which are significant
+to the Company's operations. Such changes are
+evident to external parties. A change in the business
+model occurs when the Company either begins or
+ceases to perform an activity that is significant to
+its operations. If the Company reclassifies financial
+assets, it applies the reclassification prospectively
+from the reclassification date which is the first day
+of the immediately next reporting period following
+the change in business model. The Company does
+not restate any previously recognised gains, losses
+(including impairment gains or losses) or interest.
+Derivative financial instruments and hedge accounting
+Initial recognition and subsequent measurement
+The Company uses derivative financial instruments,
+such as forward currency contracts, full currency
+An equity instrument is any contract that evidences
+a residual interest in the assets of an entity after
+deducting all of its liabilities. Equity instruments
+issued by the Company are recognised at the
+proceeds received, net of direct issue costs.
+Equity instruments
+Debt and equity instruments issued by the Company
+are classified as either financial liabilities or as equity
+in accordance with the substance of the contractual
+arrangements and the definitions of a financial liability
+and an equity instrument.
+Financial liabilities and equity instruments
+Classification as debt or equity
+reporting date, the historical observed default rates
+are updated and changes in the forward-looking
+estimates are analysed.
+The application of simplified approach does not
+require the Company to track changes in credit risk.
+Rather, it recognises impairment loss allowance
+based on lifetime ECLs at each reporting date,
+right from its initial recognition. As a practical
+expedient, the Company uses a provision matrix to
+determine impairment loss allowance on portfolio
+of its trade receivables. The provision matrix is
+based on its historically observed default rates over
+the expected life of the trade receivables and is
+adjusted for forward-looking estimates. At every
+The Company follows 'simplified approach' for
+recognition of impairment loss allowance on trade
+receivables or any contractual right to receive cash or
+another financial asset.
+In accordance with Ind AS 109, the Company applies
+expected credit loss (ECL) model for measurement
+and recognition of impairment loss on the Trade
+receivables or any contractual right to receive cash or
+another financial asset that result from transactions
+that are within the scope of Ind AS 115.
+Impairment of financial assets
+On derecognition of a financial asset in its entirety,
+the difference between the asset's carrying amount
+and the sum of the consideration received and
+receivable and the cumulative gain or loss that had
+been recognised in OCI and accumulated in equity is
+recognised in profit or loss if such gain or loss would
+have otherwise been recognised in profit or loss on
+disposal of that financial asset.
+When the Company has transferred its rights to
+receive cash flows from an asset or has entered into
+a pass-through arrangement, it evaluates if and to
+what extent it has retained the risks and rewards
+of ownership. When it has neither transferred nor
+retained substantially all of the risks and rewards of
+the asset, nor transferred control of the asset, the
+Company continues to recognise the transferred
+asset to the extent of the Company's continuing
+involvement. In that case, the Company also
+recognises an associated liability. The transferred
+asset and the associated liability are measured on a
+basis that reflects the rights and obligations that the
+Company has retained.
+flows in full without material delay to a third party
+under a 'pass-through' arrangement and either (a)
+the Company has transferred substantially all the
+risks and rewards of the asset, or (b) the Company
+has neither transferred nor retained substantially
+all the risks and rewards of the asset, but has
+transferred control of the asset.
+105
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+FINANCIAL STATEMENTS > Standalone
+Specialty in progress
+The Company has transferred its rights to receive
+contractual cash flows from the asset or has
+assumed an obligation to pay the received cash
+The contractual rights to receive cash flows from
+the asset have expired, or
+A financial asset (or, where applicable, a part of a
+financial asset or part of a group of similar financial
+assets) is primarily derecognised (i.e. removed from
+the Company's balance sheet) when:
+Repurchase of the Company's own equity instruments
+is recognised and deducted directly in equity. No gain
+or loss is recognised in profit or loss on the purchase,
+sale, issue or cancellation of the Company's own
+equity instruments.
+Compound financial instruments
+The component parts of compound financial
+instruments (convertible notes) issued by the
+Company are classified separately as financial
+liabilities and equity in accordance with the substance
+of the contractual arrangements and the definitions of
+a financial liability and an equity instrument.
+Initial recognition and measurement
+All financial liabilities are recognised initially at fair
+value and, in the case of loans and borrowings and
+payables, net of directly attributable transaction costs.
+The Company's financial liabilities include trade
+and other payables, loans and borrowings including
+bank overdrafts, financial guarantee contracts and
+derivative financial instruments.
+Derivatives embedded in non-derivative host
+contracts that are not financial assets within the
+scope of Ind AS 109 are accounted for as separate
+derivatives and recorded at fair value if their
+economic characteristics and risks are not closely
+related to those of the host contracts and the host
+contracts are not held for trading or designated at
+fair value though profit or loss. These embedded
+derivatives are measured at fair value with changes
+in fair value recognised in profit or loss, unless
+designated as effective hedging instruments.
+Reclassification of financial assets
+Embedded derivatives
+A financial liability is derecognised when the
+obligation under the liability is discharged or
+cancelled or expires. When an existing financial
+liability is replaced by another from the same lender
+on substantially different terms, or the terms of
+an existing liability are substantially modified,
+such an exchange or modification is treated as
+the derecognition of the original liability and
+the recognition of a new liability. The difference
+between the carrying amount of the financial liability
+derecognised and the consideration paid and payable
+is recognised in profit or loss.
+Derecognition
+Financial guarantee contracts are those contracts
+that require a payment to be made to reimburse the
+holder for a loss it incurs because the specified debtor
+fails to make a payment when due in accordance with
+the terms of a debt instrument. Financial guarantee
+contracts are recognised initially as a liability at fair
+value, adjusted for transaction costs that are directly
+attributable to the issuance of the guarantee. If not
+designated as at FVTPL, are subsequently measured
+at the higher of the amount of loss allowance
+determined as per impairment requirements of Ind
+AS 109 and the amount initially recognised less
+cumulative amount of income recognised.
+Financial guarantee contracts
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using the
+EIR method. Amortised cost is calculated by taking
+into account any discount or premium on acquisition
+and fees or costs that are an integral part of the EIR.
+The EIR amortisation is included as finance costs in
+the profit or loss.
+Financial liabilities that are not held-for-trading and
+are not designated as at FVTPL are measured at
+amortised cost in subsequent accounting periods.
+The carrying amounts of financial liabilities that
+are subsequently measured at amortised cost are
+determined based on the effective interest rate (EIR)
+method. Interest expense that is not capitalised as
+part of costs of an asset is included in the 'Finance
+costs' line item in the profit or loss.
+1
+Specialty in progress
+Financial liabilities designated upon initial recognition
+at fair value through profit or loss are designated as
+such at the initial date of recognition, and only if the
+criteria in Ind AS 109 are satisfied. For instruments
+not held-for-trading financial liabilities designated
+as at FVTPL, fair value gains/losses attributable to
+changes in own credit risk are recognised in OCI,
+unless the recognition of the effects of changes
+in the liability's credit risk in OCI would create or
+enlarge an accounting mismatch in profit or loss, in
+which case these effects of changes in credit risk are
+recognised in profit or loss. These gains/loss are not
+subsequently transferred to profit or loss. All other
+changes in fair value of such liability are recognised in
+the statement of profit or loss.
+PHARMA
+SUN
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+106 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL when the
+financial liability is held for trading or is designated
+upon initial recognition as at fair value through
+profit or loss. Financial liabilities are classified as
+held for trading if they are incurred principally for
+the purpose of repurchasing in the near term or on
+initial recognition it is part of a portfolio of identified
+financial instruments that the Company manages
+together and has a recent actual pattern of short-term
+All financial liabilities are subsequently measured
+at amortised cost using the effective interest
+method or at FVTPL.
+Subsequent measurement
+profit-taking. This category also includes derivative
+financial instruments that are not designated as
+hedging instruments in hedge relationships as defined
+by Ind AS 109. Gains or losses on liabilities held for
+trading are recognised in the profit or loss.
+Cash and cash equivalents comprises of
+Debt instruments at amortised cost
+Balances with banks
+•
+•
+It is expected to be settled in normal operating cycle
+It is held primarily for the purpose of trading
+It is due to be settled within twelve months after the
+reporting period, or
+Specialty in progress
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+101
+•
+There is no unconditional right to defer the settlement
+of the liability for at least twelve months after the
+reporting period
+The Company classifies all other liabilities as non-current.
+A liability is current when:
+Deferred tax assets and liabilities are classified as
+non-current assets and liabilities.
+b. Foreign currency
+On initial recognition, transactions in currencies
+other than the Company's functional currency
+(foreign currencies) are translated at exchange rates
+at the dates of the transactions. Monetary assets
+and liabilities denominated in foreign currencies
+at the reporting date are translated into the
+functional currency at the exchange rate at that date.
+Exchange differences arising on the settlement of
+monetary items or on translating monetary items
+at rates different from those at which they were
+translated on initial recognition during the period or
+in previous period are recognised in profit or loss in
+the period in which they arise except for:
+• exchange differences on foreign currency
+borrowings relating to assets under construction
+for future productive use, which are included in
+the cost of those assets when they are regarded as
+an adjustment to interest costs on those foreign
+currency borrowings (see note 2.2.r).
+• exchange differences on transactions entered
+into in order to hedge certain foreign currency
+risks (see note 2.2.i below for hedging accounting
+policies).
+Non-monetary items that are measured in terms of
+historical cost in foreign currency are measured using
+the exchange rates at the date of initial transaction.
+Operating segments are reported in a manner
+consistent with the internal reporting provided to the
+chief operating decision maker. The chief operating
+decision maker of the Company is responsible for
+allocating resources and assessing performance of the
+operating segments.
+d. Property, plant and equipment
+Items of property, plant and equipment are stated in
+balance sheet at cost less accumulated depreciation
+and accumulated impairment losses, if any.
+Freehold land is not depreciated.
+Assets in the course of construction for production,
+supply or administrative purposes are carried at cost,
+less any recognised impairment loss. Cost includes
+purchase price, borrowing costs if capitalisation
+criteria are met and directly attributable cost of
+bringing the asset to its working condition for
+the intended use. Subsequent expenditures are
+capitalised only when they increase the future
+economic benefits embodied in the specific asset
+to which they relate. Such assets are classified to
+the appropriate categories of property, plant and
+equipment when completed and ready for intended
+use. Depreciation of these assets, on the same basis
+as other assets, commences when the assets are
+ready for their intended use.
+When parts of an item of property, plant and
+equipment have different useful lives, they are
+accounted for as separate items (major components)
+of property, plant and equipment.
+An item of property, plant and equipment is
+derecognised upon disposal or when no future
+economic benefits are expected to arise from the
+continued use of the asset. Any gain or loss arising
+on the disposal or retirement of an item of property,
+plant and equipment is determined as the difference
+between the sales proceeds and the carrying amount
+of property, plant and equipment and is recognised in
+profit or loss.
+The operating cycle is the time between the acquisition
+of assets for processing and their realisation in cash and
+cash equivalents. The Company has identified twelve
+months as its operating cycle.
+All other assets are classified as non-current.
+. Cash or cash equivalent unless restricted from being
+exchanged or used to settle a liability for at least
+twelve months after the reporting period
+Expected to be realised within twelve months after
+the reporting period, or
+100 Sun Pharmaceutical Industries Ltd.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+SUN
+PHARMA
+NOTE 1. GENERAL INFORMATION
+Sun Pharmaceutical Industries Limited ("the Company")
+is a public limited company incorporated and domiciled
+in India, having it's registered office at Vadodara, Gujarat,
+India and has its listing on the Bombay Stock Exchange
+Limited and National Stock Exchange of India Limited.
+The Company is in the business of manufacturing,
+developing and marketing a wide range of branded
+and generic formulations and Active Pharmaceutical
+Ingredients (APIs). The Company has various
+manufacturing locations spread across the country
+with trading and other incidental and related activities
+extending to the global markets.
+The standalone financial statement were authorised for
+issue in accordance with a resolution of the directors
+on May 28, 2019.
+NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
+2.1 Statement of compliance
+These financial statements are separate financial
+statements of the Company (also called standalone
+financial statements). The Company has prepared
+financial statements for the year ended March 31, 2019
+in accordance with Indian Accounting Standards (Ind
+AS) notified under the Companies (Indian Accounting
+Standards) Rules, 2015 (as amended) together with the
+comparative period data as at and for the year ended
+March 31, 2018.
+2.2 Basis of preparation and presentation
+The financial statements have been prepared on the
+historical cost basis, except for: (i) certain financial
+instruments that are measured at fair values at the end
+of each reporting period; (ii) Non-current assets classified
+as held for sale which are measured at the lower of their
+carrying amount and fair value less costs to sell; (iii)
+derivative financial instrument and (iv) defined benefit
+plans - plan assets that are measured at fair values at
+the end of each reporting period, as explained in the
+accounting policies below.
+Historical cost is generally based on the fair value of the
+consideration given in exchange for goods and services.
+The standalone financial statements are presented
+in and all values are rounded to the nearest
+Million (000,000) upto one decimal, except when
+otherwise indicated.
+Fair value is the price that would be received to sell
+an asset or paid to transfer a liability in an orderly
+transaction between market participants at the
+measurement date, regardless of whether that price
+is directly observable or estimated using another
+valuation technique. In estimating the fair value of an
+asset or a liability, the Company takes into account
+the characteristics of the asset or liability if market
+participants would take those characteristics into account
+when pricing the asset or liability at the measurement
+date. Fair value for measurement and/or disclosure
+purposes in these financial statements is determined
+on such a basis, except for share-based payment
+transactions that are within the scope of Ind AS 102,
+leasing transactions that are within the scope of Ind AS
+17, and measurements that have some similarities to fair
+value but are not fair value, such as net realisable value in
+Ind AS 2 or value in use in Ind AS 36.
+In addition, for financial reporting purposes, fair value
+measurements are categorised into Level 1, 2, or 3
+based on the degree to which the inputs to the fair value
+measurements are observable and the significance of the
+inputs to the fair value measurement in its entirety, which
+are described as follows:
+Level 1 inputs are quoted prices (unadjusted) in
+active markets for identical assets or liabilities that
+the entity can access at the measurement date;
+Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the
+asset or liability, either directly or indirectly; and
+Level 3 inputs are unobservable inputs for the asset
+or liability.
+The Company has consistently applied the following
+accounting policies to all periods presented in these
+financial statements.
+a. Current vs. Non-current
+•
+.
+The Company presents assets and liabilities in
+the balance sheet based on current / non-current
+classification. An asset is treated as current when it is:
+Expected to be realised or intended to be sold or
+consumed in normal operating cycle
+Held primarily for the purpose of trading
+Items of property, plant and equipment acquired
+through exchange of non-monetary assets are
+measured at fair value, unless the exchange
+transaction lacks commercial substance or the fair
+value of either the asset received or asset given up is
+not reliably measurable, in which case the acquired
+asset is measured at the carrying amount of the
+asset given up.
+Depreciation is recognised on the cost of assets (other
+than freehold land and Capital work-in-progress) less
+their residual values on straight-line method over
+their useful lives as indicated in Part C of Schedule II
+of the Companies Act, 2013. Leasehold improvements
+are depreciated over period of the lease
+agreement or the useful life, whichever is shorter.
+Depreciation methods, useful lives and residual values
+Annual Report 2018-19
+102 Sun Pharmaceutical Industries Ltd.
+Other intangible assets that are acquired by the
+Company and that have finite useful lives are
+measured at cost less accumulated amortisation
+and accumulated impairment losses, if any.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate.
+Research and development
+Expenditure on research activities undertaken with
+the prospect of gaining new scientific or technical
+knowledge and understanding are recognised as
+an expense when incurred. Development activities
+involve a plan or design for the production of new
+or substantially improved products and processes.
+An internally-generated intangible asset arising from
+development is recognised if and only if all of the
+following have been demonstrated:
+•
+development costs can be measured reliably;
+the product or process is technically and
+commercially feasible;
+future economic benefits are probable; and
+the Company intends to and has sufficient
+resources/ability to complete development and to
+use or sell the asset.
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable
+to preparing the asset for its intended use.
+Other development expenditure is recognised in profit
+or loss as incurred.
+Payments to third parties that generally take the form
+of up-front payments and milestones for in-licensed
+products, compounds and intellectual property are
+capitalised since the probability of expected future
+economic benefits criterion is always considered to
+be satisfied for separately acquired intangible assets.
+Acquired research and development intangible
+assets which are under development, are recognised
+as In-Process Research and Development assets
+("IPR&D"). IPR&D assets are not amortised, but
+evaluated for potential impairment on an annual
+basis or when there are indications that the carrying
+value may not be recoverable. Any impairment
+charge on such IPR&D assets is recognised in profit
+or loss. Intangible assets relating to products under
+development, other intangible assets not available
+for use and intangible assets having indefinite useful
+life are tested for impairment annually, or more
+frequently when there is an indication that the assets
+may be impaired. All other intangible assets are tested
+for impairment when there are indications that the
+carrying value may not be recoverable.
+The consideration for acquisition of intangible asset
+which is based on reaching specific milestone that
+are dependent on the Company's future activity
+is recognised only when the activity requiring the
+payment is performed.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate. All other
+expenditures, including expenditures on internally
+generated goodwill and brands, are recognised in the
+statement of profit and loss as incurred.
+Amortisation is recognised on a straight-line basis
+over the estimated useful lives of intangible assets.
+Intangible assets that are not available for use are
+amortised from the date they are available for use.
+Specialty in progress
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+103
+The estimated useful lives for Product related
+intangibles and Other intangibles ranges
+from 3 to 20 years.
+The estimated useful life and the amortisation
+method for intangible assets with a finite useful life
+are reviewed at the end of each reporting period, with
+the effect of any changes in estimate being accounted
+for on a prospective basis.
+The estimated useful life and amortisation method
+are reviewed at the end of each reporting period, with
+the effect of any changes in estimate being accounted
+for on a prospective basis.
+De-recognition of intangible assets
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits are
+expected from their use. Gain or loss arising on such
+de-recognition is recognised in profit or loss, and
+are measured as the difference between the net
+disposal proceeds, if any, and the carrying amount
+of respective intangible assets as on the date of
+de-recognition.
+f. Investments in the nature of equity in subsidiaries
+and associates
+The Company has elected to recognise its
+investments in equity instruments in subsidiaries
+and associates at cost in the separate financial
+statements in accordance with the option available
+in Ind AS 27, 'Separate Financial Statements'.
+Impairment policy applicable on such investments is
+explained in Note 2.2.g.
+Particulars
+g. Impairment of non-financial assets
+Other intangible assets
+Annual Report 2018-19
+Goodwill represents the excess of consideration
+transferred, together with the amount of
+non-controlling interest in the acquiree, over the
+fair value of the Company's share of identifiable net
+assets acquired. Goodwill is measured at cost less
+accumulated impairment losses.
+Software for internal use, which is primarily acquired
+from third-party vendors and which is an integral part
+of a tangible asset, including consultancy charges for
+implementing the software, is capitalised as part of the
+related tangible asset. Subsequent costs associated with
+maintaining such software are recognised as expense as
+incurred. The capitalised costs are amortised over the
+lower of the estimated useful life of the software and
+the remaining useful life of the tangible fixed asset.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+SUN
+PHARMA
+are reviewed at the end of each reporting period, with
+the effect of any changes in estimate accounted for
+on a prospective basis.
+The estimated useful lives are as follows:
+Asset Category
+Leasehold land
+No. of years
+60-99
+Factory Buildings
+30
+Buildings other than Factory Buildings
+60
+Buildings given under operating lease
+30
+Plant and equipment
+3-20
+Plant and equipment given under
+15
+operating lease
+Vehicles
+Office equipment
+Furniture and fixtures
+5-10
+2-5
+10
+e. Goodwill and other intangible assets
+Goodwill
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+c. Segment reporting
+SUNIL R. AJMERA
+Company Secretary
+* in Million
+Year ended March 31, 2019
+Year ended March 31, 2018
+Borrowings
+68,840.1
+Derivatives
+(Asset, net)
+754.1
+Borrowings
+Derivatives
+(Asset, net)
+60,466.1
+1,210.0
+(7,206.6)
+(827.8)
+8,091.6
+(518.0)
+2,277.7
+73.7
+176.1
+(32.1)
+214.7
+94.2
+455.2
+64,366.4
+Other changes
+214.7
+Changes in fair value
+Changes from financing cash flows
+In current accounts
+As at
+March 31, 2019
+3,023.3
+* in Million
+As at
+March 31, 2018
+1,091.3
+In deposit accounts with original maturity less than 3 months
+SUDHIR V. VALIA
+Wholetime Director
+Cash on hand
+4.3
+2.4
+Cash and cash equivalents (Refer Note 15)
+3,027.6
+1,094.3
+Less:- cash credit facilities included under loans repayable on demand in Note 26
+Cash and cash equivalents in cash flow statement
+116.3
+3,027.6
+978.0
+2 Change in financial liability / asset arising from financing activities
+Particulars
+Opening balance
+The effect of changes in foreign exchange rates
+106.3
+68,840.1
+0.6
+DILIP S. SHANGHVI
+Managing Director
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Mumbai, May 28, 2019
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the standalone financial statements
+Closing balance
+754.1
+C. S. MURALIDHARAN
+Chief Financial Officer
+8.8
+* in Million
+Common shares of no par value
+0.5
+1,000
+0.5
+1,000
+Shares of Bolivars (Bs.F.) 100 each, Bolivars (Bs.F.)
+As at March 31, 2018
+Quantity
+Sun Pharma De Venezuela, C.A.
+Sun Farmaceutica do Brasil Ltda
+700,000
+7.0
+700,000
+Shares of 10 each fully paid
+Green Eco Development Centre Limited
+Quota of Capital Stock of Real 1 each fully paid
+7.0
+117
+Sun Pharmaceutical Industries, Inc.
+Unquoted (At cost less impairment in value of investments, if any)
+535.0
+995.6
+697.5
+1,208.0
+2,440.5
+488.5
+1,208.0
+2,692.1
+Footnote
+(i) The aggregate amortisation has been included under depreciation and amortisation expense in the statement of profit and loss.
+(ii) Refer Note 56 (2)
+(iii) The recoverable amount of Goodwill have been determined based on value in use calculations which uses cash flow projections covering generally
+a period of five years which are based on key assumptions such as margins, expected growth rates based on past experience and Management's
+expectations/extrapolation of normal increase/steady terminal growth rate and appropriate discount rates that reflects current market
+assessments of time value of money. The management believes that any reasonable possible change in key assumptions on which recoverable
+amount is based is not expected to cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit.
+Specialty in progress
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+NOTE: 5 INVESTMENTS IN THE NATURE OF EQUITY IN SUBSIDIARIES (NON-CURRENT)
+As at March 31, 2019
+Quantity
+* in Million
+Equity instruments
+8,387,666
+304.2
+8,387,666
+304.2
+149
+0.0
+149
+0.0
+[21,734 (March 31, 2018: 21,734)]
+SPIL DE Mexico S.A. DE CV
+Nominative and free Shares of 500 Mexican Pesos
+100
+0.2
+100
+0.2
+each fully paid
+OOO "Sun Pharmaceutical Industries" Limited
+Par value rouble stock fully paid
+1
+8.8
+1
+Ordinary Shares of Soles 10 each fully paid
+5,250,000 Rouble (March 31, 2018: 5,250,000 Rouble)
+Sun Pharmaceutical Peru S.A.C.
+31.6
+4,019
+18.3
+4,019
+18.3
+Sun Pharma De Mexico, S.A. DE C.V.
+As at March 31, 2019
+750
+3.3
+750
+3.3
+Sun Pharmaceutical (Bangladesh) Limited
+Ordinary Shares of 100 Takas each fully paid
+434,469
+36.5
+434,469
+36.5
+Share application money
+31.6
+Common Shares of no Face Value
+51.8
+(147.4)
+PHARMA
+SUN
+(0.2)
+6,060.7
+1,208.0
+8,317.1
+Foreign currency translation reserve
+0.4
+438.3
+438.7
+Additions
+Disposals
+705.5
+204.2
+909.7
+(0.7)
+(261.7)
+in Million
+Computer
+Software
+Product
+related
+intangibles
+Goodwill
+322.9
+(0.2)
+1,048.4
+As at March 31, 2018
+Disposals
+50 per share paid
+Additions
+6.9
+6.9
+Foreign currency translation reserve
+(262.4)
+5,850.2
+2,085.5
+1,208.0
+157.8
+719.7
+6.0
+Add - Transfer on merger [Refer Note 56 (11)]
+As at March 31, 2017
+At cost or deemed cost
+Total
+5,844.2
+6,711.0
+1,753.6
+1,208.0
+0.4
+387.4
+244.8
+349.2
+(0.6)
+(146.8)
+758.0
+5,953.0
+9.1
+512.1
+392.7
+4,795.9
+9.1
+679.0
+374.7
+(0.1)
+5,876.6
+387.8
+594.0
+5,363.2
+513.4
+(0.1)
+166.9
+9,403.1
+As at March 31, 2019
+Net book value
+As at March 31, 2019
+Accumulated amortisation and impairment
+As at March 31, 2017
+342.4
+50.3
+6,441.5
+Add - Transfer on merger [Refer Note 56 (11)]
+4,791.7
+Foreign currency translation reserve
+Amortisation expense
+Disposals
+As at March 31, 2018
+Foreign currency translation reserve
+Amortisation expense
+Disposals
+4.2
+Sun Pharma Laboratories Limited
+3,318.5
+(1,737.8)
+50,000
+6,610.5
+746.5
+Other than internally generated
+185,517.7
+3,318.5
+6,610.5
+1,429.7
+Investments in subsidiaries
+Preference shares - Unquoted
+Sun Pharma Laboratories Limited
+10% Non-Convertible, Non-Cumulative Redeemable
+Preference Shares of 100 each fully paid
+Other investments
+Investments in equity instruments
+Quoted
+Krebs Biochemicals and Industries Limited
+Shares of 10 each fully paid
+Unquoted
+Enviro Infrastructure Co. Limited
+As at March 31, 2019
+Quantity
+3,318.5
+179,199.7
+NOTE: 6 INVESTMENTS (NON-CURRENT)
+Aggregate amount of impairment in value of investments
+Aggregate amount of quoted investments at market value
+3,318.5
+35,128,078
+Less: Impairment in value of investment
+(1,737.8)
+1,580.7
+1,580.7
+95,947.5
+95,947.5
+As at March 31, 2018
+Preference shares - unquoted (At cost)
+5% Optionally Convertible Preference Shares USD 1
+each fully paid
+1,265,593,148
+79,960.2
+1,365,593,148
+86,278.2
+175,907.7
+182,225.7
+Aggregate amount of unquoted investments before impairment
+Aggregate book value (carrying value) of quoted investments
+before impairment
+Sun Pharma Holdings
+35,128,078
+* in Million
+* in Million
+0.2
+20,000
+0.2
+Biotech Consortium India Limited
+Shares of 10 each fully paid
+50,000
+Less: Impairment in value of investment
+0.5
+(0.5)
+50,000
+0.5
+(0.5)
+Nimbua Greenfield (Punjab) Limited
+Shares of 10 each fully paid
+140,625
+1.4
+140,625
+1.4
+Specialty in progress
+20,000
+Shares of 10 each fully paid
+Shivalik Solid Waste Management Limited
+934.0
+(934.0)
+4,000,000
+400.0
+400.0
+1,050,000
+120.2
+1,050,000
+172.3
+Shares of 10 each fully paid
+Quantity
+100,000
+100,000
+1.0
+Shimal Research Laboratories Limited
+Shares of 10 each fully paid
+9,340,000
+Less: Impairment in value of investment
+934.0
+(934.0)
+9,340,000
+1.0
+Shares of 10 each fully paid
+Shares of 10 each fully paid
+Quoted (At cost less impairment in value of investments, if any)
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+Skisen Labs Private Limited
+Shares of 10 each fully paid
+16,360,000
+Less: Impairment in value of investment
+163.6
+(163.6)
+16,360,000
+163.6
+(163.6)
+Softdeal Trading Company Private Limited
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+10,000
+0.1
+10,000
+1.5
+50,000
+1.5
+Faststone Mercantile Company Private Limited
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+0.1
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+Neetnav Real Estate Private Limited
+Shares of 10 each fully paid
+Realstone Multitrade Private Limited
+Foundation for Disease Elimination and Control of India
+Zenotech Laboratories Limited [Refer Note 56 (1)]
+Sun Pharma Holdings
+855,199,716
+PHARMA
+As at March 31, 2019
+Quantity
+* in Million
+As at March 31, 2018
+Quantity
+in Million
+Ranbaxy Malaysia Sdn. Bhd.
+Ordinary Shares of RM 1 each fully paid
+3,189,248
+37.0
+3,189,248
+37.0
+Ranbaxy Nigeria Limited
+Ordinary Shares of Naira 1 each fully paid
+13,070,648
+8.6
+13,070,648
+8.6
+SUN
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+118 Sun Pharmaceutical Industries Ltd.
+54,031.5
+855,199,716
+54,031.5
+Sun Pharma (Netherlands) B.V. [formerly known as Ranbaxy
+(Netherlands) B.V.]
+Ordinary Shares of Euro 100 each fully paid
+5,473,340
+39,877.3
+Shares of USD 1 each fully paid
+5,473,340
+Ranbaxy Pharmacie Generiques SAS
+Ordinary Shares of Euro 1 each fully paid
+24,117,250
+Less: Impairment in value of investment
+4,709.1
+(4,709.1)
+24,117,250
+4,709.1
+(4,709.1)
+Annual Report 2018-19
+39,877.3
+NOTE : 4 GOODWILL / INTANGIBLE ASSETS
+As at March 31, 2018
+Notes to the Standalone Financial Statements
+Annual Report 2018-19
+The amendments clarify that if a plan amendment,
+curtailment or settlement occurs, it is mandatory
+that the current service cost and the net interest for
+Ind AS 19 - Plan Amendment, Curtailment or
+Settlement
+The amendments should be applied retrospectively
+and are effective for annual periods beginning on or
+after April 01, 2019. The Company is evaluating the
+impact on its financial statements.
+Under Ind AS 109, a debt instrument can be measured
+at amortised cost or at fair value through other
+comprehensive income, provided that the contractual
+cash flows are 'solely payments of principal and
+interest on the principal amount outstanding' (the
+SPPI criterion) and the instrument is held within the
+appropriate business model for that classification.
+The amendments to Ind AS 109 clarify that a financial
+asset passes the SPPI criterion regardless of the event
+or circumstance that causes the early termination
+of the contract and irrespective of which party pays
+or receives reasonable compensation for the early
+termination of the contract.
+Ind AS 109: Prepayment Features with Negative
+Compensation
+Ind AS 12 - Income taxes (amendments relating
+uncertainty over income tax treatments)
+The amendment to Appendix C of Ind AS 12
+specifies that the amendment is to be applied to the
+determination of taxable profit (tax loss), tax bases,
+unused tax losses, unused tax credits and tax rates,
+when there is uncertainty over income tax treatments
+under Ind AS 12. It outlines the following: (1) the
+entity has to use judgement, to determine whether
+each tax treatment should be considered separately
+or whether some can be considered together.
+The decision should be based on the approach which
+provides better predictions of the resolution of
+the uncertainty (2) the entity is to assume that the
+taxation authority will have full knowledge of all
+relevant information while examining any amount (3)
+entity has to consider the probability of the relevant
+taxation authority accepting the tax treatment and the
+determination of taxable profit (tax loss), tax bases,
+unused tax losses, unused tax credits and tax rates
+would depend upon the probability. The Company is
+evaluating the impact on its financial statements.
+than under Ind AS 17. The Company is evaluating
+the requirements of the standard and it's effect on
+its financials.
+Ind AS 116, which is effective for annual periods
+beginning on or after 1 April 2019, requires lessees
+and lessors to make more extensive disclosures
+Lessor accounting under Ind AS 116 is substantially
+unchanged from today's accounting under Ind AS
+17. Lessors will continue to classify all leases using
+the same classification principle as in Ind AS 17 and
+distinguish between two types of leases: operating
+and finance leases.
+Lessees will be also required to remeasure the lease
+liability upon the occurrence of certain events (e.g.,
+a change in the lease term, a change in future lease
+payments resulting from a change in an index or rate
+used to determine those payments). The lessee will
+generally recognise the amount of the remeasurement
+of the lease liability as an adjustment to the
+right-of-use asset.
+Ind AS 116 Leases has been notified on March 30,
+2019, and it replaces Ind AS 17 Leases, including
+appendices thereto. Ind AS 116 is effective for
+annual periods beginning on or after April, 01
+2019. Ind AS 116 sets out the principles for the
+recognition, measurement, presentation and
+disclosure of leases and requires lessees to account
+for all leases under a single on-balance sheet model
+similar to the accounting for finance leases under
+Ind AS 17. The standard includes two recognition
+exemptions for lessees - leases of 'low-value' assets
+(e.g., personal computers) and short-term leases
+(i.e., leases with a lease term of 12 months or less).
+At the commencement date of a lease, a lessee will
+recognise a liability to make lease payments (i.e., the
+lease liability) and an asset representing the right to
+use the underlying asset during the lease term (i.e.,
+the right-of-use asset). Lessees will be required to
+separately recognise the interest expense on the
+lease liability and the depreciation expense on the
+right-of-use asset.
+The Ministry of Corporate Affairs (MCA) has issued
+the Companies (Indian Accounting Standards)
+Amendment Rules, 2019 and Companies (Indian
+Accounting Standards) Second Amendment Rules,
+2019 introducing /amending the following standards:
+Ind AS 116, Leases
+Standards issued but not yet effective and not early
+adopted by the Company
+v. Recent Accounting pronouncements
+Business Combination involving entities or businesses
+under common control shall be accounted for using
+the pooling of interest method.
+113
+PHARMA
+normal income tax during the period for which the
+MAT credit can be carried forward for set-off against
+the normal tax liability. MAT credit recognised as an
+asset is reviewed at each Balance Sheet date and
+written down to the extent the aforesaid convincing
+evidence no longer exists.
+t. Earnings per share
+The Company presents basic and diluted earnings per
+share ("EPS") data for its equity shares. Basic EPS is
+calculated by dividing the profit or loss attributable to
+equity shareholders of the Company by the weighted
+average number of equity shares outstanding during
+the period. Diluted EPS is determined by adjusting
+the profit or loss attributable to equity shareholders
+and the weighted average number of equity shares
+outstanding for the effects of all dilutive potential
+ordinary shares, which includes all stock options
+granted to employees.
+The number of equity shares and potentially dilutive
+equity shares are adjusted retrospectively for all
+periods presented for any share splits and bonus
+shares issues including for changes effected prior
+to the approval of the financial statements by the
+Board of Directors.
+u. Business combination
+114 Sun Pharmaceutical Industries Ltd.
+The Company uses the acquisition method of
+accounting to account for business combinations that
+occurred on or after April 01, 2015. The acquisition
+date is generally the date on which control is
+transferred to the acquirer. Judgment is applied in
+determining the acquisition date and determining
+whether control is transferred from one party
+to another. Control exists when the Company is
+exposed to, or has rights to, variable returns from
+its involvement with the entity and has the ability
+to affect those returns through power over the
+entity. In assessing control, potential voting rights
+are considered only if the rights are substantive.
+The Company measures goodwill as of the applicable
+acquisition date at the fair value of the consideration
+transferred, including the recognised amount of any
+non-controlling interest in the acquiree and the fair
+value of the acquirer's previously held equity interest
+in the acquiree (if any), less the net recognised amount
+of the identifiable assets acquired and liabilities
+assumed. When the fair value of the net identifiable
+assets acquired and liabilities assumed exceeds the
+consideration transferred, a bargain purchase gain is
+recognised immediately in the OCI and accumulates
+the same in equity as Capital Reserve where there
+exists clear evidence of the underlying reasons for
+classifying the business combination as a bargain
+purchase else the gain is directly recognised in equity
+A contingent liability of the acquiree is assumed
+in a business combination only if such a liability
+represents a present obligation and arises from a
+past event, and its fair value can be measured reliably.
+On an acquisition-by-acquisition basis, the Company
+recognises any non-controlling interest in the acquiree
+either at fair value or at the non-controlling interest's
+proportionate share of the acquiree's identifiable
+net assets. Transaction costs that the Company
+incurs in connection with a business combination,
+such as finder's fees, legal fees, due diligence fees
+and other professional and consulting fees, are
+expensed as incurred.
+If the business combination is achieved in stages,
+any previously held equity interest is re-measured
+at its acquisition date fair value and any resulting
+gain or loss is recognised in profit or loss or OCI,
+as appropriate.
+If the initial accounting for a business combination
+is incomplete by the end of the reporting period
+in which the combination occurs, the Company
+reports provisional amounts for the items for which
+the accounting is incomplete. Those provisional
+amounts are adjusted during the measurement period
+(see above), or additional assets or liabilities are
+recognised, to reflect new information obtained about
+facts and circumstances that existed at the acquisition
+date that, if known, would have affected the amounts
+recognised at that date.
+Specialty in progress
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+as Capital Reserve. Consideration transferred includes
+the fair values of the assets transferred, liabilities
+incurred by the Company to the previous owners of the
+acquiree, and equity interests issued by the Company.
+Consideration transferred also includes the fair value
+of any contingent consideration. Changes in the fair
+value of the contingent consideration that qualify
+as measurement period adjustments are adjusted
+retrospectively, with corresponding adjustments
+against goodwill or capital reserve, as the case maybe.
+The subsequent accounting for changes in the fair
+value of the contingent consideration that do not
+qualify as measurement period adjustments depends
+on how the contingent consideration is classified.
+Contingent consideration that is classified as equity is
+not remeasured at subsequent reporting dates and its
+subsequent settlement is accounted for within equity.
+Contingent consideration that is classified as an asset
+or a liability is remeasured at fair value at subsequent
+reporting dates with the corresponding gain or loss
+being recognised in profit or loss. Consideration
+transferred does not include amounts related to
+settlement of pre-existing relationships.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+SUN
+and fixtures
+Office
+equipment
+Total
+At cost or deemed cost
+As at March 31, 2017
+933.8
+Vehicles
+562.4
+16.9
+Add - Transfer on merger
+32,049.7
+525.0
+894.0
+455.0
+601.6
+12,281.9
+SUN
+Furniture
+Buildings
+- leased
+PHARMA
+the period after the re-measurement are determined
+using the assumptions used for the re-measurement.
+In addition, amendments have been included to
+clarify the effect of a plan amendment, curtailment or
+settlement on the requirements regarding the asset
+ceiling. The Company is evaluating the impact on its
+financial statements.
+Annual amendments to Ind AS
+Ind AS 23 - Borrowing Costs
+The amendments clarify that if any specific borrowing
+remains outstanding after the related asset is ready
+for its intended use or sale, that borrowing becomes
+part of the funds that an entity borrows generally
+when calculating the capitalisation rate on general
+borrowings. The Company is evaluating the impact on
+its financial statements.
+Ind AS 12: Income Taxes (amendments relating to
+income tax consequences of dividend)
+The amendment relating to income tax consequences
+of dividend clarify that an entity shall recognise the
+income tax consequences of dividends in profit or
+loss, other comprehensive income or equity according
+to where the entity originally recognised those past
+transactions or events. It is relevant to note that the
+amendment does not amend situations where the
+entity pays a tax on dividend which is effectively a
+portion of dividends paid to taxation authorities on
+behalf of shareholders. Such amount paid or payable
+to taxation authorities continues to be charged to
+equity as part of dividend, in accordance with Ind
+AS 12. The Company is evaluating the impact on its
+financial statements.
+Plant and
+equipment
+Specialty in progress
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+NOTE: 3 PROPERTY, PLANT AND EQUIPMENT
+115
+* in Million
+Freehold Leasehold
+land
+land
+Buildings
+FINANCIAL STATEMENTS > Standalone
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+112 Sun Pharmaceutical Industries Ltd.
+In determining the transaction price, the Company
+considers the effects of variable consideration,
+the existence of significant financing components,
+noncash consideration, and consideration payable
+to the customer (if any). The Company estimates
+variable consideration at contract inception until it
+is highly probable that a significant revenue reversal
+in the amount of cumulative revenue recognised will
+not occur when the associated uncertainty with the
+variable consideration is subsequently resolved.
+Sales returns
+The Company accounts for sales returns accrual by
+recording an allowance for sales returns concurrent
+with the recognition of revenue at the time of
+a product sale. This allowance is based on the
+Company's estimate of expected sales returns.
+With respect to established products, the Company
+considers its historical experience of sales returns,
+levels of inventory in the distribution channel,
+estimated shelf life, product discontinuances,
+price changes of competitive products, and the
+introduction of competitive new products, to the
+extent each of these factors impact the Company's
+business and markets. With respect to new products
+introduced by the Company, such products have
+historically been either extensions of an existing
+line of product where the Company has historical
+experience or in therapeutic categories where
+established products exist and are sold either by the
+Company or the Company's competitors.
+Contract balances
+Contract assets
+A contract asset is the right to consideration in
+exchange for goods or services transferred to the
+customer. If the Company performs by transferring
+goods or services to a customer before the
+customer pays consideration or before payment is
+Revenue from contracts with customers is recognised
+when control of the goods or services are transferred
+to the customer at an amount that reflects the
+consideration to which the Company expects to be
+entitled in exchange for those goods or services.
+The Company has generally concluded that it is the
+principal in its revenue arrangements, since it is the
+primary obligor in all of its revenue arrangement, as
+it has pricing latitude and is exposed to inventory
+and credit risks. Revenue is stated net of goods and
+service tax and net of returns, chargebacks, rebates
+and other similar allowances. These are calculated
+on the basis of historical experience and the specific
+terms in the individual contracts.
+110 Sun Pharmaceutical Industries Ltd.
+for the year ended March 31, 2019
+SUN
+PHARMA
+due, a contract asset is recognised for the earned
+consideration that is conditional.
+Trade receivables
+A receivable represents the Company's right to an
+amount of consideration that is unconditional (i.e.,
+only the passage of time is required before payment
+of the consideration is due).
+Notes to the Standalone Financial Statements
+Contract liabilities
+n. Revenue
+Sale of goods
+(ii) Present obligations arising from past events where
+it is not probable that an outflow of resources
+will be required to settle the obligation or a
+reliable estimate of the amount of the obligation
+cannot be made.
+for the year ended March 31, 2019
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+109
+result of past event, it is probable that an outflow
+of resources embodying economic benefits will
+be required to settle the obligation and a reliable
+estimate can be made of the amount of obligation.
+When the Company expects some or all of a provision
+to be reimbursed, for example, under an insurance
+contract, the reimbursement is recognised as a
+separate asset, but only when the reimbursement
+is certain. The expense relating to a provision is
+presented in the statement of profit and loss net of
+any reimbursement.
+Contingent assets are not recognised in the
+financial statements.
+If the effect of the time value of money is material,
+provisions are determined by discounting the
+expected future cash flows at a pre-tax rate that
+reflects current market assessments of the time
+value of money and the risks specific to the liability.
+Where discounting is used, the increase in the
+provision due to the passage of time is recognised as
+a finance cost.
+A provision for restructuring is recognised when the
+Company has a detailed formal restructuring plan
+and has raised a valid expectation in those affected
+that it will carry out the restructuring by starting
+to implement the plan or announcing its main
+features to those affected by it. The measurement
+of a restructuring provision includes only the direct
+expenditure arising from the restructuring, which are
+those amounts that are both necessarily entailed by
+the restructuring and not associated with the ongoing
+activities of the entity.
+Onerous contracts
+Present obligations arising under onerous contracts
+are recognised and measured as provisions.
+An onerous contract is considered to exist where the
+Company has a contract under which the unavoidable
+costs of meeting the obligations under the contract
+exceed the economic benefit expected to be received
+from the contract.
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+(i) Possible obligations which will be confirmed only
+by future events not wholly within the control of
+the Company, or
+Restructuring
+47,795.3
+525.0
+A contract liability is the obligation to transfer
+goods or services to a customer for which the
+Company has received consideration (or an amount
+of consideration is due) from the customer. If a
+customer pays consideration before the Company
+transfers goods or services to the customer, a
+contract liability is recognised when the payment is
+made or the payment is due (whichever is earlier).
+Contract liabilities are recognised as revenue when
+the Company performs under the contract
+Revenue from services rendered is recognised in
+the profit or loss as the underlying services are
+performed. Upfront non-refundable payments
+received are deferred and recognised as revenue over
+the expected period over which the related services
+are expected to be performed.
+amount that it expects to pay as a result of the
+unused entitlement that has accumulated at the
+reporting date.
+The Company treats accumulated leave expected
+to be carried forward beyond twelve months, as
+long-term employee benefit for measurement
+purposes. Such long-term compensated absences are
+provided for based on the actuarial valuation using
+the projected unit credit method at the year-end.
+Actuarial gains/losses are immediately taken to the
+statement of profit and loss and are not deferred.
+The Company's net obligation in respect of other
+long term employee benefits is the amount of
+future benefit that employees have earned in
+return for their service in the current and previous
+periods. That benefit is discounted to determine its
+present value.
+Defined contribution plans
+The Company's contributions to defined contribution
+plans are recognised as an expense as and when the
+services are received from the employees entitling
+them to the contributions. The Company does not
+have any obligation other than the contribution made.
+Share-based payment arrangements
+The grant date fair value of options granted to
+employees is recognised as an employee expense,
+with a corresponding increase in equity, on a straight
+line basis, over the vesting period, based on the
+Company's estimate of equity instruments that
+will eventually vest. At the end of each reporting
+period, the Company revises its estimate of the
+number of equity instruments expected to vest.
+The impact of the revision of the original estimates,
+if any, is recognised in profit or loss such that the
+cumulative expense reflects the revised estimate,
+with a corresponding adjustment to the equity-settled
+employee benefits reserve.
+For cash-settled share-based payments, a liability
+is recognised for the goods or services acquired,
+measured initially at the fair value of the liability.
+At the end of each reporting period until the liability
+is settled, and at the date of settlement, the fair value
+of the liability is remeasured, with any changes in fair
+value recognised in profit or loss for the year.
+r. Borrowing costs
+111
+Borrowing costs that are directly attributable to the
+construction or production of a qualifying asset are
+capitalised as part of the cost of that asset. All other
+borrowing costs are expensed in the period in which
+they occur. Borrowing costs consist of interest and
+other costs that an entity incurs in connection with
+s. Income tax
+Income tax expense consists of current and deferred
+tax. Income tax expense is recognised in profit or
+loss except to the extent that it relates to items
+recognised in OCI or directly in equity, in which
+case it is recognised in OCI or directly in equity
+respectively. Current tax is the expected tax payable
+on the taxable profit for the year, using tax rates
+enacted or substantively enacted by the end of the
+reporting period, and any adjustment to tax payable in
+respect of previous years. Current tax assets and tax
+liabilities are offset where the Company has a legally
+enforceable right to offset and intends either to settle
+on a net basis, or to realise the asset and settle the
+liability simultaneously.
+Deferred tax is recognised on temporary differences
+between the carrying amounts of assets and liabilities
+in the financial statements and the corresponding tax
+bases used in the computation of taxable profit.
+Deferred tax is measured at the tax rates that are
+expected to be applied to the temporary differences
+when they reverse, based on the laws that have been
+enacted or substantively enacted by the end of the
+reporting period. Deferred tax assets and liabilities
+are offset if there is a legally enforceable right to set
+off corresponding current tax assets against current
+tax liabilities and the deferred tax assets and deferred
+tax liabilities relate to income taxes levied by the
+same tax authority on the Company.
+A deferred tax asset is recognised to the extent
+that it is probable that future taxable profits will be
+available against which the temporary difference can
+be utilised. Deferred tax assets are reviewed at each
+reporting date and are reduced to the extent that it
+is no longer probable that the related tax benefit will
+be realised. Withholding tax arising out of payment
+of dividends to shareholders under the Indian Income
+tax regulations is not considered as tax expense for
+the Company and all such taxes are recognised in
+the statement of changes in equity as part of the
+associated dividend payment.
+Minimum Alternate Tax ('MAT') credit is recognised as
+deferred tax asset only when and to the extent there
+is convincing evidence that the Company will pay
+Annual Report 2018-19
+the borrowing of funds. Borrowing cost also includes
+exchange differences to the extent regarded as an
+adjustment to the borrowing costs. A qualifying asset
+is one that necessarily takes substantial period of time
+to get ready for its intended use.
+Rendering of services
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+Specialty in progress
+Royalties
+Royalty revenue is recognised on an accrual basis
+in accordance with the substance of the relevant
+agreement (provided that it is probable that
+economic benefits will flow to the Company and
+the amount of revenue can be measured reliably).
+Royalty arrangements that are based on production,
+sales and other measures are recognised by reference
+to the underlying arrangement.
+o. Dividend and interest income
+Dividend income is recognised when the Company's
+right to receive the payment is established, which is
+generally when shareholders approve the dividend.
+Interest income from a financial asset is recognised
+when it is probable that the economic benefits will
+flow to the Company and the amount of income can
+be measured reliably. Interest income is accrued on a
+time basis, by reference to the principal outstanding
+and at the effective interest rate applicable, which
+is the rate that exactly discounts estimated future
+cash receipts through the expected life of the
+financial asset to that asset's net carrying amount on
+initial recognition.
+p. Government grants
+The Company recognises government grants
+only when there is reasonable assurance that the
+FINANCIAL STATEMENTS > Standalone
+conditions attached to them will be complied with,
+and the grants will be received. When the grant
+relates to an expense item, it is recognised as income
+on a systematic basis over the periods that the
+related costs, for which it is intended to compensate,
+are expensed. When the grant relates to an asset,
+the Company deducts such grant amount from the
+carrying amount of the asset.
+Defined benefit plans
+The Company operates a defined benefit gratuity
+plan which requires contribution to be made to a
+separately administered fund.
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method
+with actuarial valuations being carried out at the end
+of each annual reporting period. The present value
+of the defined benefit obligation is determined by
+discounting the estimated future cash outflows by
+reference to market yields at the end of the reporting
+period on government bonds. The currency and term
+of the government bonds shall be consistent with the
+currency and estimated term of the post-employment
+benefit obligations. The current service cost of
+the defined benefit plan, recognised in the profit
+or loss as employee benefits expense, reflects the
+increase in the defined benefit obligation resulting
+from employee service in the current year, benefit
+changes, curtailments and settlements. Past service
+costs are recognised in profit or loss in the period of
+a plan amendment. The net interest cost is calculated
+by applying the discount rate to the net balance of
+the defined benefit obligation and the fair value of
+plan assets. This cost is included in employee benefit
+expense in profit or loss. Actuarial gains and losses
+arising from experience adjustments and changes
+in actuarial assumptions are charged or credited
+to OCI in the period in which they arise and is
+reflected immediately in retained earnings and is not
+reclassified to profit or loss.
+Termination benefits
+Termination benefits are recognised as an expense
+at the earlier of the date when the Company can
+no longer withdraw the offer of those benefits and
+when the entity recognises costs for a restructuring
+that is within the scope of Ind AS 37 and involves the
+payment of termination benefits.
+Short-term and Other long-term employee benefits
+Accumulated leave, which is expected to be utilised
+within the next 12 months, is treated as short-term
+employee benefit. The Company measures the
+expected cost of such absences as the additional
+q. Employee benefits
+[Refer Note 56 (11)]
+Annual Report 2018-19
+0.6
+495.9
+(0.2)
+Disposals
+11.0
+Depreciation expense
+translation reserve
+21.4
+21.4
+Foreign currency
+13,404.3
+387.7
+219.2
+415.2
+10,891.4
+1.5
+1,468.7
+20.6
+As at March 31, 2018
+6.8
+399.5
+0.5
+3,441.0
+115.8
+98.4
+0.5
+131.4
+Disposals
+(77.5)
+(0.7)
+(30.7)
+(1.0)
+(109.9)
+4,193.4
+4,068.7
+104.8
+93.9
+541.8 12,691.4
+898.0 12,683.9
+15.4 28,540.1
+14.9 31,249.2
+543.0
+485.2
+261.9
+370.4 44,005.2
+196.9
+1,147.5
+416.5 47,092.1
+(i) Buildings include 8,620 (As at March 31, 2018: 8,620) towards cost of shares in a co-operative housing society and also includes 1.1 Million
+(As at March 31, 2018: 1.1 Million) and 1,133.0 Million (As at March 31, 2018: 1,133.0 Million) towards cost of non-convertible preference
+shares of face value of 10/- each and compulsorily convertible debentures of face value of 10,000/- each in a Company respectively entitling
+the right of occupancy and use of premises and also includes 4.5 Million (March 31, 2018: 4.5 Million) towards cost of flats not registered in
+the name of the Company but is entitled to right of use and occupancy.
+(ii) For details of assets pledged as security refer Note 50.
+(iii) The aggregate depreciation has been included under depreciation and amortisation expense in the statement of profit and loss.
+Annual Report 2018-19
+116 Sun Pharmaceutical Industries Ltd.
+Foreign currency
+Footnotes
+Depreciation expense
+As at March 31, 2019
+As at March 31, 2018
+160.7
+4,935.5
+(4.0)
+(49.9)
+(6.9)
+As at March 31, 2019
+1,041.2
+31.6 1,964.4
+14,799.5
+516.0
+263.2
+541.5
+(243.0)
+18,118.2
+Net book value
+2.0
+translation reserve
+(182.0)
+0.7
+562.4 14,160.1
+16.9
+39,431.5
+958.2
+481.1
+758.1
+1,041.2
+57,409.5
+39.2
+39.2
+translation reserve
+Additions
+Disposals
+As at March 31, 2019
+Foreign currency
+106.4
+(236.2)
+(56.4)
+translation reserve
+0.6
+0.7
+Additions
+107.4
+1,878.2
+(1.7)
+7,033.1
+82.5
+158.2
+9,324.8
+Disposals
+(176.9)
+(1.2)
+65.4
+367.2
+As at March 31, 2018
+7,065.3
+65,210.3
+Accumulated depreciation
+and impairment
+As at March 31, 2017
+[Refer Note 56 (11)]
+13.8
+1,069.2
+1.0
+7,308.9
+218.3
+300.1
+151.5
+490.9
+257.3
+Foreign currency
+9,101.8
+218.3
+958.0
+460.1
+Add - Transfer on merger
+1,001.2
+67.7
+207.9
+48.3
+8,353.7
+(0.1)
+1,147.5
+(2.7)
+14,648.3
+929.6
+(487.3)
+46,048.7
+(5.3)
+(88.7)
+(8.0)
+(592.1)
+16.9
+120,370.0
+7.5
+224,184.8
+123,846.1
+34,779.3
+34,779.3
+7.5
+53,575.2
+11,932.9
+March 31, 2019
+43.8
+53,575.2
+11,929.1
+PHARMA
+As at
+March 31, 2018
+* in Million
+SUN
+220,704.9
+43.8
+26.1
+Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.
+1,485.9
+Foreign currency translation reserve - Exchange differences relating to the translation of the results and the net assets of the Company's
+foreign operations from their functional currencies to the Company's presentation currency (i.e) are recognised directly in the other
+comprehensive income and accumulated in foreign currency translation reserve. Exchange difference in the foreign currency translation
+reserve are reclassified to statement of profit or loss account on the disposal of the foreign operation. [Refer Note 56 (11)]
+Debt instrument through OCI - This represents the cumulative gain and loss arising on fair valuation of debt instruments measured through
+other comprehensive income. This will be reclassified to statement of profit or loss on derecognition of debt instrument.
+As at
+Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investment in equity instrument in
+other comprehensive income. This amount will be reclassifed to retained earnings on derecognition of equity instrument.
+General reserve: The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies Act, 1956.
+Mandatory transfer to general reserve is not required under the Companies Act, 2013.
+Capital redemption reserve - The Company has recognised capital redemption reserve on buyback of equity shares from its retained earnings.
+The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.
+Share options outstanding account - The fair value of the equity settled share based payment transactions is recognised to share option
+outstanding account.
+Securities premium - The amount received in excess of face value of the equity shares is recognised in securities premium. In case of
+equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as
+securities premium. It is utilised in accordance with the provisions of the Companies Act, 2013.
+Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as
+capital reserve.
+Nature and purpose of each reserve
+Refer statement of changes in equity for detailed movement in other equity balance
+220,826.8
+121.9
+1,852.0
+226,036.8
+348.2
+72.0
+60.0
+(10.1)
+(8.2)
+Effective portion of cash flow hedges
+182,437,880
+Debt instrument through OCI
+# Pursuant to Scheme of Amalgamation, Shanghvi Finance Private Limited ("SFPL"), who is a part of the Promoter Group of the Company, has w.e.f.
+October 23, 2018 acquired 959,489,975 Equity Shares of the Company representing 40.0% of the total paid-up equity share capital of the Company
+from 11 Transferor Companies namely 1) Viditi Investment Private Limited; 2) Tejaskiran Pharmachem Industries Private Limited; 3) Quality
+Investment Private Limited; 4) Family Investment Private Limited; 5) Virtuous Share Investments Private Limited; 6) Virtuous Finance Private Limited;
+7) Sholapur Organics Private Limited; 8) Jeevanrekha Investrade Private Limited; 9) Package Investrade Private Limited; 10) Asawari Investment and
+Finance Private Limited; and 11) Nirmit Exports Private Limited. These transferor companies formed part of promoter group and collectively held the
+aforementioned equity shares of the Company.
+Shareholding has been consolidated on the basis of PAN as per SEBI circular dated December 19, 2017.
+6.1
+145,302,877
+5.9
+141,217,558
+7.6
+182,379,237
+7.6
+8.1
+194,820,971
+8.4
+200,846,362
+9.6
+230,285,690
+9.6
+Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on
+changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss recognised
+and accumulated under the cash flow hedge reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or
+loss, or included as a basis adjustment to the non-financial hedged item.
+(i) Nil (upto March 31, 2018: 1,035,581,955) equity shares of 1 each have been allotted as fully paid up bonus shares during the period of five years
+immediately preceding the date at which the Balance Sheet is prepared.
+Foreign currency translation reserve
+(ii) 334,956,764 (upto March 31, 2018: 334,956,764) equity shares of 1 each have been allotted, pursuant to scheme of amalgamation, without
+payment being received in cash during the period of five years immediately preceding the date at which the Balance Sheet is prepared.
+(iv) Rights, Preference and Restrictions attached to equity shares: The equity shares of the Company, having par value of ₹ 1 per share, rank pari passu
+in all respects including voting rights and entitlement to dividend.
+Equity instrument through OCI
+C) Items of other comprehensive income (OCI)
+Retained earnings
+General reserve
+Capital redemption reserve
+Amalgamation reserve
+Share options outstanding account
+Securities premium
+Capital reserve
+B) Surplus
+A) Share application money spending allotment
+NOTE : 21 OTHER EQUITY
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+126 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+(v) Refer Note 49 for number of employee stock options against which equity shares are to be issued by the Company / ESOP Trust upon vesting and
+exercise of those stock options.
+(iii) 7,500,000 (upto March 31, 2018: 7,500,000), equity shares of 1 each have been bought back during the period of five years immediately
+preceding the date at which the Balance Sheet is prepared. The shares bought back were cancelled.
+Specialty in progress
+Payables on purchase of property, plant and equipment
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+128 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+25,286.2
+52,138.1
+13,887.8
+44,280.5
+6,049.7
+20,802.2
+30,392.7
+As at
+March 31, 2018
+* in Million
+March 31, 2019
+As at
+3,451.8
+1,570.7
+1,808.5
+1,643.3
+As at
+March 31, 2018
+for the year ended March 31, 2019
+* in Million
+NOTE : 27 OTHER FINANCIAL LIABILITIES (CURRENT)
+Interest accrued
+Shares of 10 each fully paid
+Watsun Infrabuild Private Limited
+Shares of 10 each fully paid
+Citron Ecopower Private Limited
+in Million
+As at March 31, 2018
+Quantity
+119
+* in Million
+As at March 31, 2019
+Quantity
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+FINANCIAL STATEMENTS > Standalone
+Balances held as margin money or security against guarantees and other commitments (*)
+NOTE : 28 OTHER LIABILITIES (CURRENT)
+Product settlement, claims, recall charges and trade commitments
+Derivatives not designated as hedge
+0.0
+Security deposits
+Unpaid dividends
+Current maturities of long-term debt (Refer Note 50)
+1,570.7
+March 31, 2019
+As at
+Unsecured
+From Banks
+Loans repayable on demand
+NOTE : 26 BORROWINGS (CURRENT)
+Others (Refer Note 53)
+Employee benefits
+NOTE : 25 PROVISIONS (NON-CURRENT)
+Deferred revenue
+NOTE : 24 OTHER LIABILITIES (NON-CURRENT)
+Interest accrued
+NOTE : 23 OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+Unsecured
+Term loans from banks (Refer Note 50)
+Term loan from department of biotechnology (Refer Note 50)
+Secured
+March 31, 2019
+As at
+NOTE : 22 BORROWINGS (NON-CURRENT)
+Loans from related party (Refer Note 51)
+Loans repayable on demand (Unsecured)
+Other loans
+Commercial paper (Unsecured)
+127
+As at
+March 31, 2018
+181.0
+181.0
+As at
+March 31, 2019
+in Million
+9.1
+9.1
+10.2
+10.2
+March 31, 2018
+FINANCIAL STATEMENTS > Standalone
+As at
+in Million
+15,646.9
+14,225.0
+15,538.7
+14,127.7
+108.2
+97.3
+* in Million
+As at
+March 31, 2018
+As at
+March 31, 2019
+282,603
+134.5
+16,164.3
+959,772,578
+230,285,690
+133.5
+535.2
+2,432.1
+7,552.7
+184.3
+186.3
+14.7
+34.2
+0.1
+9.9
+16.0
+As at
+March 31, 2018
+March 31, 2019
+As at
+in Million
+520.5
+2,947.3
+53.4
+674.0
+2,779.7
+8,458.0
+Annual Report 2018-19
+Issued, subscribed and fully paid up
+Equity Shares of 1 each
+Cumulative preference shares of 100 each
+Equity shares of 1 each
+Authorised
+NOTE : 20 SHARE CAPITAL
+* includes balances of goods and service tax
+Balances with government authorities *
+Other assets
+Less: Allowance for doubtful
+Considered doubtful
+Considered good
+Advances for supply of goods and services
+Prepaid expenses
+Export incentives receivable
+NOTE: 19 OTHER ASSETS (CURRENT)
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+124 Sun Pharmaceutical Industries Ltd.
+3,315.0
+467.1
+167.6
+(4.5)
+Derivatives not designated as hedges
+Other receivables - from related parties (Refer Note 51)
+Other receivables
+Security deposits (unsecured, considered good)
+Insurance claim receivables
+Considered good
+Interest accrued
+NOTE: 18 OTHER FINANCIAL ASSETS (CURRENT)
+*Loans have been granted for the purpose of their business.
+Unsecured, considered good
+Loans to related parties (Refer Note 51 and 52)
+Less: Allowance for doubtful loans (expected credit loss allowance)
+Credit impaired
+Unsecured, considered good
+Secured, considered good
+Loans to employees / others*
+NOTE: 17 LOANS (CURRENT)
+Derivatives designated as hedges
+123
+As at
+March 31, 2019
+253.8
+(4.5)
+4.5
+4.5
+448.9
+18.2
+0.8
+166.8
+As at
+March 31, 2018
+* in Million
+Reconciliation of the number of equity shares and amount outstanding
+at the beginning and at the end of reporting period
+March 31, 2019
+458.4
+380.1
+324.8
+35.6
+73.0
+90.7
+60.6
+* in Million
+As at
+March 31, 2018
+As at
+As at
+March 31, 2019
+3,347.8
+437.4
+Less: shares allotted by ESOP Trust on exercise of employee stock
+Add: shares allotted to the ESOP Trust
+Opening balance (*: * 30,366)
+The movement of equity shares issued to ESOP Trust at face value
+is as follows:
+2,399.3
+2,399,323,180
+2,399.3
+2,399,334,970
+Closing balance
+2,399.3
+0.0
+2,399,260,815
+62,365
+2,399.3
+0.0
+11,790
+Add: shares allotted to employees on exercise of employee stock
+option (excluding shares held by ESOP trust) (March 31, 2019:
+11,790; March 31, 2018: 62,365)
+2,399,323,180
+Opening balance
+* in Million
+option (30,366)
+Closing balance
+Specialty in progress
+30,366
+% of holding
+125
+shares
+As at March 31, 2018
+Number of
+Quality Investments Private Limited #
+Life Insurance Corporation Of India
+Family Investment Private Limited #
+Tejaskiran Pharmachem Industries Private Limited #
+Viditi Investment Private Limited #
+Year ended March 31, 2018
+Number of
+shares
+Dilip Shantilal Shanghvi
+% of holding
+As at March 31, 2019
+Number of
+shares
+Equity shares held by each shareholder holding more than 5 percent
+equity shares in the Company are as follows:
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+FINANCIAL STATEMENTS > Standalone
+* (0.0)
+(30,366)
+* 0.0
+Shanghvi Finance Private Limited #
+40.0
+shares
+Year ended March 31, 2019
+Number of
+15,845.5
+5.0
+Investments in government securities
+Quoted
+9,454.0
+10,347.3
+3,383.2
+1,897.3
+(328.8)
+(355.5)
+328.8
+355.5
+3,383.2
+1,897.3
+2,701.0
+302.3
+* in Million
+As at
+March 31, 2018
+PHARMA
+SUN
+As at March 31, 2019
+As at March 31, 2018
+Number of
+shares
+Number of
+2,399.3
+2,399.3
+2,399,323,180
+2,399,323,180
+2,399.3
+2,399.3
+2,399,334,970
+2,399,334,970
+6,000.0
+10.0
+100,000
+* in Million
+5,990.0
+5,990,000,000
+10.0
+100,000
+5,990,100,000
+5,990.0
+5,990,000,000
+shares
+* in Million
+* in Million
+6,000.0 5,990,100,000
+7.86% Government of Rajasthan UDAY 2019
+Bond of 1 each fully paid maturing June 23, 2019
+8.01 % Government of Rajasthan UDAY 2020
+As at
+March 31, 2019
+Bond of 1 each fully paid maturing March 7, 2026
+7.98% Government of Telangana UDAY 2030
+119,010
+Kotak Mahindra Mutual Fund - Kotak Liquid Scheme Plan A -
+Direct Plan - Growth
+1,001.0
+3,621,515
+ICICI Prudential Mutual Fund - ICICI Prudential Liquid -
+Direct Plan - Growth
+26.9
+27,400,000
+* in Million
+PHARMA
+SUN
+26.9
+27,400,000
+Quantity
+* in Million
+As at March 31, 2019
+Quantity
+As at March 31, 2018
+Bond of 1 each fully paid maturing June 23, 2019
+Investments in mutual funds
+Unquoted *
+450.4
+Bond of 1 each fully paid maturing June 23, 2018
+7.86% Government of Rajasthan UDAY 2019
+Yes Asset Mangement (India) Limited - Yes Liquid
+Fund Direct Growth
+1,001.2
+in Million
+As at
+March 31, 2019
+Specialty in progress
+In deposit accounts with original maturity less than 3 months
+Cash on hand
+In current accounts
+Balances with banks
+NOTE: 15 CASH AND CASH EQUIVALENTS
+Less: Allowance for doutful debts (expected credit loss allowance)
+Credit impaired
+Considered good
+Unsecured
+NOTE: 14 TRADE RECEIVABLES
+*Investments in mutual funds have been fair valued at closing net asset value (NAV).
+420.7
+447.6
+2,479.5
+209,995
+BOI Axa Mutual Fund-BOI Axa Liquid Fund-Direct Plan-Growth
+986,315
+As at
+March 31, 2018
+7.75% Government of Rajasthan UDAY 2018
+NOTE: 13 INVESTMENTS (CURRENT)
+As at
+March 31, 2018
+* in Million
+As at
+March 31, 2019
+2,870.5
+18.0
+1,057.3
+7.8
+3,953.6
+3,498.1
+* in Million
+As at
+March 31, 2018
+March 31, 2019
+2,469.9
+5.0
+1,023.2
+As at
+121
+Stores and spares
+Stock-in-trade
+Finished goods
+Work-in-progress
+Lower of cost and net realisable value
+Raw materials and packing materials
+Goods in transit
+NOTE: 12 INVENTORIES
+* includes amount paid under protest
+Other assets
+11,538.5
+40.8
+Investments in government securities
+Quoted
+7,583.3
+11,579.3
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+122 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+(ii) The cost of inventories recognised as an expense is disclosed in Notes 32, 33 and 36 and as purchases of stock-in-trade in the statement of
+profit and loss.
+(i) Inventory write downs are accounted, considering the nature of inventory, estimated shelf life, planned product discontinuances, price changes,
+ageing of inventory and introduction of competitive new products. Write downs of inventories amounted to 9,154.5 Million (March 31, 2018:
+* 8,767.9 Million). The changes in write downs are recognised as an expense in the statement of profit and loss.
+21,356.4
+27,926.2
+249.7
+439.4
+979.5
+2,212.7
+4,687.2
+5,035.6
+7,727.8
+8,659.2
+7,712.2
+128.9
+50,314.7
+52,714.4
+1,361.6
+97.4
+118.3
+592.8
+1,150.1
+30,126.9
+16,027.2
+22.6
+36,878.7
+90.3
+18,567.4
+* in Million
+1,724.0
+2,790.4
+As at
+March 31, 2019
+As at
+March 31, 2018
+2,282.8
+404.7
+42.7
+15.5
+86.4
+4,572.6
+93.9
+84.2
+Statutory remittances
+Advance from customers
+Deferred revenue
+Others *
+* Includes government grant received from Biotechnology Industry Research Assistance Council (BIRAC).
+NOTE : 29 PROVISIONS (CURRENT)
+Employee benefits
+Provision in respect of losses of a subsidiary
+Others (Refer Note 53)
+NOTE: 30 REVENUE FROM OPERATIONS
+SUN
+PHARMA
+As at
+March 31, 2019
+* in Million
+As at
+March 31, 2018
+5,860.9
+1,055.1
+40.0
+4.0
+2,691.5
+As at
+March 31, 2019
+in Million
+As at
+March 31, 2018
+FINANCIAL STATEMENTS > Standalone
+1,094.3
+2.4
+4.3
+3,027.6
+0.6
+1,091.3
+3,023.3
+As at
+March 31, 2018
+As at
+March 31, 2019
+* in Million
+52,714.4
+50,314.7
+(1,575.5)
+(1,361.6)
+54,289.9
+51,676.3
+1,575.5
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+NOTE: 16 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 15 ABOVE
+Deposit accounts
+Earmarked balances with banks
+475.6
+394.8
+2,399.9
+2,125.9
+22,561.8
+24,006.8
+25,437.3
+26,527.5
+Balances with government authorities
+Revenue from contracts with customers [Refer Note 55, Note 56 (9) and 56 (12)]
+Other operating revenues
+97,832.9
+5,199.2
+103,032.1
+in Million
+Year ended
+March 31, 2018
+87,744.1
+2,318.4
+90,062.5
+Specialty in progress
+Unpaid dividend accounts
+Year ended
+March 31, 2019
+Prepaid expenses
+Capital advances
+NOTE : 11 OTHER ASSETS (NON-CURRENT)
+As at
+March 31, 2018
+As at
+March 31, 2019
+in Million
+Derivatives not designated as hedges
+Security deposits (unsecured, considered good)
+Deposits
+NOTE : 8 OTHER FINANCIAL ASSETS (NON-CURRENT)
+Unsecured, considered good
+Secured, considered good
+Loans to employees / others
+NOTE : 7 LOANS (NON-CURRENT)
+934.5
+934.5
+Aggregate amount of impairment in value of investments
+1,342.1
+938.2
+471.7
+3.1
+650.2
+10.2
+24.0
+Deferred tax (liabilities) / assets in relation to:
+NOTE: 9 DEFERRED TAX ASSETS (NET)
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+120 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+489.7
+546.1
+82.8
+120.7
+1.0
+405.9
+424.0
+1.4
+As at
+March 31, 2018
+* in Million
+34.2
+10.0
+6.9
+471.7
+650.2
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+Aggregate amount of unquoted investments before impairment
+100,000,000
+Bond of 1 each fully paid maturing March 7, 2030
+8.24 % Government of Tamil Nadu UDAY 2028
+96.5
+100,000,000
+98.4
+100,000,000
+27.2
+27,400,000
+27.1
+27,400,000
+27.1
+27,400,000
+179.9
+1.1
+123.9
+110,832
+5.0
+500,500
+100.1 100,000,000
+97.6
+Bond of ₹ 1 each fully paid maturing March 22, 2028
+8.11% Government of Chhattisgarh SDL 2028
+50,000,000
+879.3
+653.9
+299.4
+530.0
+[10,000 (March 31, 2018: 10,000)]
+0.0
+0.0
+National savings certificates
+Difference between written down value of property, plant
+Unquoted
+50,000,000
+Bond of 1 each fully paid maturing February 21, 2028
+202.2
+200,000,000
+Bond of ₹ 1 each fully paid maturing January 31, 2028
+8.29% Government of West Bengal SDL 2028
+51.0
+50,000,000
+50.8
+51.4
+Bond of 1 each fully paid maturing June 23, 2020
+7.62% Government of Telangana UDAY 2026
+and equipment and capital work-in-progress as per books of
+accounts and income tax
+April 01, 2018
+88,814.5
+743.5
+30,539.7
+37,767.1
+81,976.0
+743.5
+Deductible temporary differences
+Unused tax credits (MAT credit entitlement)
+Unabsorbed depreciation
+Tax losses (Capital in nature)
+Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax
+assets have been recognised are attributable to the following:
+As at
+March 31, 2018
+As at
+March 31, 2019
+* in Million
+* includes tax on foreign currency translation reserve
+7,517.0
+7,517.0
+(987.0)
+987.0
+7,517.0
+7,517.0
+2,874.3
+MAT credit entitlement
+2,874.3
+22,382.2
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+FINANCIAL STATEMENTS > Standalone
+20,742.4
+21,101.2
+20,742.4
+21,101.2
+As at
+March 31, 2018
+As at
+March 31, 2019
+* in Million
+Specialty in progress
+* includes amount paid under protest
+Net of provisions 10,896.0 Million (March 31, 2018 : 10,896.0 Million)
+Advance income tax
+NOTE: 10 INCOME TAX ASSETS (NET) (NON-CURRENT)
+The unused tax credits will expire from financial year 2022-23 to financial year 2027-28 and unused tax losses will expire from financial year 2019-20
+to financial year 2026-27.
+145,354.2
+144,119.1
+20,758.2
+(987.0)
+987.0
+1.5
+(14.3)
+17.2
+3.2
+(34.7)
+Difference in carrying value and tax base of financial assets
+of investments
+(5,832.2)
+March 31, 2019
+Closing balance
+income
+in other
+comprehensive
+Recognised
+* in Million
+PHARMA
+SUN
+(704.9)
+(5,127.3)
+Recognised in
+profit or loss
+Derivatives designated as hedges
+(187.0)
+(187.0)
+Other liabilities
+(759.5)
+613.6
+147.4
+Other assets*
+5,800.8
+1,846.6
+3,954.2
+Unabsorbed depreciation / carried forward losses
+Opening balance
+353.8
+18.1
+393.4
+Expenses claimed for tax purpose on payment basis
+601.6
+(724.2)
+(724.2)
+(65.4)
+667.0
+Allowance for doubtful debts and advances
+(57.7)
+Tax losses
+* having original maturity of more than 12 months.
+* in Million
+Deposits
+Security deposits
+Trade receivables
+Cash and cash equivalents
+Bank balances other than cash and cash equivalents
+Interest accrued
+Other receivables
+Mandatorily measured:
+Derivatives not designated as hedges
+Total
+Financial liabilities
+Borrowings
+Interest accrued
+Trade payables
+Unpaid dividends
+Security deposits
+Payables on purchase of property, plant and equipment
+Loans to employees / others
+Loans to related parties
+Government securities - unquoted (* 10,000)
+Equity instruments / preference shares / mutual fund - unquoted
+1,212.3
+64,894.4
+64,366.4
+94.4
+21,549.2
+93.9
+97.4
+592.8
+Product settlement, claims, recall charges and trade commitments
+Mandatorily measured:
+30,126.9
+22.6
+116,921.0
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+Financial assets
+Investments
+Equity instruments / bonds - quoted
+22.6
+254.2
+2,710.5
+Derivatives not designated as hedges
+Fair value
+through profit
+or loss
+1,150.1
+16,027.2
+90.3
+90.3
+111,930.9
+Annual Report 2018-19
+136 Sun Pharmaceutical Industries Ltd.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+NOTE: 42 FAIR VALUE HIERARCHY
+Financial assets and liabilities measured at fair value on a recurring basis at the end of
+each reporting period
+Total
+Financial assets
+Investments in equity - quoted #
+Investments in equity - unquoted
+Investments in government securities
+Investments in preference shares
+Mutual funds
+Derivatives not designated as hedges
+118.3
+86.4
+49.1
+25,659.7
+68,840.1
+828.3
+As at March 31, 2018
+Fair value
+through other
+comprehensive
+income
+498.6
+135
+in Million
+Amortised cost
+0.0
+53.4
+Total
+501.3
+420.6
+52,714.4
+1,094.3
+458.4
+9.9
+2,616.4
+756.8
+1,585.1
+498.6
+1.0
+535.2
+0.1
+7,739.0
+16.0
+2,434.4
+NOTE : 40 RESEARCH AND DEVELOPMENT EXPENDITURE
+Revenue, net (excluding depreciation) (Refer Note 37)
+Capital
+Year ended
+March 31, 2019
+9,029.9
+590.9
+9,620.8
+* in Million
+Year ended
+March 31, 2018
+8,011.5
+1,591.0
+9,602.5
+Annual Report 2018-19
+134 Sun Pharmaceutical Industries Ltd.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+NOTE: 41 CATEGORIES OF FINANCIAL INSTRUMENTS
+Financial assets
+2,774.9
+The Company is committed to pay milestone payments and royalty on certain contracts, however,
+obligation to pay is contingent upon fulfillment of contractual obligation by parties to the contract.
+Guarantees given by the bankers on behalf of the Company
+iii
+1,060.5
+Future cash outflows in respect of the above matters are determinable only on receipt of judgements /
+decisions pending at various forums / authorities.
+As at
+March 31, 2019
+* in Million
+As at
+March 31, 2018
+¡¡
+Commitments
+a
+b
+Investments
+Estimated amount of contracts remaining to be executed on capital account [net of advances]*.
+Uncalled liability on partly paid investments
+3,977.9
+0.5
+с
+For derivatives related commitments refer Note 44
+d
+For non-cancellable lease related commitments refer Note 48
+e
+Letters of credit for imports
+859.3
+4,767.5
+0.5
+Equity instruments / bonds - quoted
+Equity instruments / preference shares / mutual fund - unquoted
+Government securities - unquoted (₹ 10,000)
+Mandatorily measured:
+Derivatives not designated as hedges
+Total
+Specialty in progress
+Fair value
+through profit
+or loss
+As at March 31, 2019
+Fair value
+through other
+comprehensive
+income
+677.1
+2,456.3
+Product settlement, claims, recall charges and trade commitments
+SUN
+* in Million
+Amortised
+cost
+0.0
+2,779.7
+177.6
+1.4
+458.2
+50,314.7
+3,027.6
+380.1
+PHARMA
+Derivatives designated as hedges
+Payables on purchase of property, plant and equipment
+Unpaid dividends
+Loans to related parties
+Loans to employees / others
+Deposits
+Security deposits
+Trade receivables
+Cash and cash equivalents
+Bank balances other than cash and cash equivalents
+Interest accrued
+Security deposits
+Insurance claim receivables
+Derivatives designated as hedges
+Mandatorily measured :
+Total
+Derivatives not designated as hedges
+Financial liabilities
+Borrowings
+Interest accrued
+Trade payables
+Other receivables
+Note:
+Financial liabilities
+Total
+1,575.5
+Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
+manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
+due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.
+The Company has unutilised working capital lines from banks of ₹ 32,313.0 Million as on March 31, 2019, 41,769.0 Million as
+on March 31, 2018.
+The table below provides details regarding the contractual maturities of significant financial liabilities:
+Less than 1 year
+1 - 3 years
+More than
+3 years
+* in Million
+As at
+March 31, 2019
+Non derivative
+Borrowings
+Trade payables
+50,276.2
+12,479.3
+1,781.4
+64,536.9
+21,549.2
+21,549.2
+Other financial liabilities
+Liquidity risk
+Other than trade receivables, the Company has no significant class of financial assets that is past due but not impaired.
+The Company has recognised an allowance of 4.5 Million (March 31, 2018: ₹ 4.5 Million) against a past due loan
+including interest.
+Balance at the end of the year
+1,361.6
+As at
+March 31, 2019
+* in Million
+As at
+March 31, 2018
+33,432.2
+7,826.8
+10,417.3
+40,525.2
+11,403.8
+2,360.9
+51,676.3
+54,289.9
+30,995.2
+Year ended
+March 31, 2019
+Year ended
+March 31, 2018
+1,575.5
+1,209.7
+181.1
+636.5
+(395.0)
+(270.7)
+* in Million
+Recoveries
+10.2
+102,820.6
+Debt (includes non-current, current borrowings and current maturities of long-term debt)
+(i) Debt equity ratio
+The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents, bank balance
+(excluding earmarked balances with banks) and current investments as presented on the face of the financial statements.
+The Company's objective for capital management is to maintain an optimum overall financial structure.
+407.6
+(405.0)
+3.7
+402.6
+5.0
+407.6
+1.1
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+- to ensure the Company's ability to continue as a going concern; and
+The Company's capital management objectives are:
+NOTE: 43 CAPITAL MANAGEMENT
+Balance at the end of the year
+Disposal settlements
+Issues
+Purchases
+As at
+March 31, 2018
+Balance at the beginning of the year
+Less: cash and cash equivalents, bank balance (excluding earmarked balances with banks) and
+current investments
+Net debt
+Total equity, including reserves
+Net debt to total equity ratio
+12,489.5
+1,781.4
+117,091.5
+Derivative
+Forward exchange contracts
+22.6
+22.6
+22.6
+31,005.4
+22.6
+As at
+March 31, 2019
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting
+and hence not recognised as liability.
+The Board of Directors at it's meeting held on May 28, 2019 have recommended payment of final
+dividend of * 2.75 per share of face value of 1 each for the year ended March 31, 2019. The same
+amounts to 6,598.2 Million.
+Dividends not recognised at the end of the reporting period
+Dividend distribution tax on above
+Final dividend for the year ended March 31, 2018 of 2.0 (year ended March 31, 2017 : 3.5) per
+fully paid share
+Dividend on equity shares
+(ii) Dividend on equity shares paid during the year
+Specialty in progress
+Addition
+Balance at the beginning of the year
+Movement in the expected credit loss allowance on trade receivables
+Total
+Investments in equity - quoted #
+Investments in equity - unquoted
+Investments in government securities
+Investments in preference shares
+Mutual funds
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Financial liabilities
+172.3
+7.6
+326.3
+400.0
+420.7
+756.8
+919.3
+756.8
+Financial assets
+Financial assets and liabilities measured at fair value on a recurring basis at the end of
+each reporting period
+Level 3
+As at March 31, 2018
+Level 2
+SUN
+PHARMA
+* in Million
+Level 1
+As at March 31, 2019
+Level 2
+Level 3
+120.2
+556.9
+407.6
+3.7
+254.2
+535.2
+3,129.7
+789.4
+3.7
+22.6
+22.6
+* in Million
+Level 1
+2,452.6
+Derivatives not designated as hedges
+90.3
+90.3
+NOTE: 44 FINANCIAL RISK MANAGEMENT
+The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company's
+risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company,
+to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and
+management policies and processes are reviewed regularly to reflect changes in market conditions and the Company's activities.
+Credit risk
+Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
+its contractual obligations, and arises principally from the Company's receivables from customers, loans and investments.
+Annual Report 2018-19
+138 Sun Pharmaceutical Industries Ltd.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+SUN
+3.4
+PHARMA
+Investments
+The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have
+a good credit rating. The Company does not expect any significant losses from non-performance by these counter-parties,
+and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
+Trade receivables
+The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company
+uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and
+internal risk factors and historical data of credit losses from various customers.
+Financial assets for which loss allowances is measured using the expected credit loss
+Trade receivables
+less than 180 days
+180 - 365 days
+beyond 365 days
+Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
+counterparty to which the Company grants credit terms in the normal course of business.
+Derivatives not designated as hedges
+5.6
+4,791.6
+Total
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
+measurement date.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either
+directly or indirectly.
+Level 3 inputs are unobservable inputs for the asset or liability.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of
+unquoted investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents
+estimate of fair value within that range.
+# These investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose. Upon the
+application of Ind AS 109, the Company has chosen to designate these investments in equity instruments at fair value through other comprehensive
+income as the management believes that this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting
+changes in fair value immediately in profit or loss.
+There were no transfers between Level 1 and 2 in the periods.
+Specialty in progress
+7,977.4
+FINANCIAL STATEMENTS > Standalone
+137
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates
+their fair value.
+Reconciliation of Level 3 fair value measurements
+* in Million
+Year ended
+March 31, 2019
+Year ended
+March 31, 2018
+Unlisted shares valued at fair value
+Year ended
+March 31, 2018
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+The Company and its subsidiaries is a defendant in a number of putative class action lawsuits and
+individual actions brought by purchasers and payors in US alleging that the Company and its affiliates
+violated antitrust laws and the Racketeer Influenced and Corrupt Organizations Act, with respect to
+its ANDAs for Valganciclovir, Valsartan and Esomeprazole. The cases have been transferred to the
+United States District Court for the District of Massachusetts for coordinated proceedings. The cases
+are proceeding in discovery.
+57,869.7
+Antitrust - Lipitor:
+NOTE: 36 OTHER EXPENSES
+Year ended
+SUN
+PHARMA
+* in Million
+Year ended
+March 31, 2019
+March 31, 2018
+3,335.2
+2.956.7
+2,027.3
+660.6
+46.7
+5,409.2
+265.8
+3,883.1
+Year ended
+March 31, 2019
+* in Million
+Year ended
+Interest expense for financial liabilities carried at amortised cost
+Exchange differences regarded as an adjustment to borrowing costs
+Unwinding of discounts on provisions
+NOTE: 35 FINANCE COSTS
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+14,987.1
+(13,394.5)
+1,592.6
+NOTE: 34 EMPLOYEE BENEFITS EXPENSE
+Salaries, wages and bonus
+Contribution to provident and other funds *
+Share based payments to employees
+Staff welfare expenses
+* includes gratuity expense of 250.9 Million (March 31, 2018: * 331.8 Million)
+Year ended
+March 31, 2019
+March 31, 2018
+14,379.5
+973.5
+Year ended
+March 31, 2018
+14,822.2
+1,042.0
+(1.0)
+360.4
+15,713.4
+386.8
+16,250.0
+Annual Report 2018-19
+130 Sun Pharmaceutical Industries Ltd.
+* in Million
+Consumption of materials, stores and spare parts
+Conversion and other manufacturing charges
+Power and fuel
+Rent
+514.0
+3,746.5
+3,261.1
+231.8
+466.9
+2,154.5
+2,214.1
+176.6
+538.2
+225.4
+1,678.2
+2,481.3
+1,781.0
+277.7
+278.2
+(147.0)
+(135.7)
+4,546.2
+1,615.2
+Year ended
+March 31, 2018
+1,469.6
+224.4
+Rates and taxes
+Insurance
+Selling and distribution
+Commission on sales
+Repairs and maintenance
+Printing and stationery
+Travelling and conveyance
+Freight outward and handling charges
+1,165.9
+Communication
+Professional, legal and consultancy
+4,362.8
+4,704.5
+2,467.8
+1,999.1
+4,072.8
+3,761.7
+211.5
+Provision / write off / (reversal) for doubtful trade receivables / advances
+4,751.5
+* in Million
+Year ended
+March 31, 2019
+March 31, 2018
+32.1
+11.8
+123.6
+34.9
+46.9
+46.8
+527.1
+246.8
+563.9
+947.3
+1,293.6
+1,287.6
+Dividend income on investments
+Subsidiary
+Others (March 31, 2019: 30,000; March 31, 2018: 24,000)
+8,909.3
+The Company and its subsidiaries is a defendant in a number of putative class action lawsuits
+and individual actions brought by purchasers and payors in US alleging that the Company and its
+affiliates violated antitrust laws in connection with a 2008 patent settlement agreement with Pfizer
+concerning Atorvastatin. The cases have been transferred to the United States District Court for the
+District of New Jersey for coordinated proceedings. The cases are proceeding in discovery.
+Antitrust - In re Ranbaxy Generic Drug Application Antitrust Litigation:
+* in Million
+Year ended
+Year ended
+129
+64,366.4
+5,760.9
+58,605.5
+228,436.1
+25.7%
+68,840.1
+1,602.5
+67,237.6
+223,226.1
+30.1%
+* in Million
+8,154.8
+Year ended
+March 31, 2019
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+NOTE: 31 OTHER INCOME
+Interest income on :
+Bank deposits at amortised cost
+Loans at amortised cost
+Investments in debt instruments at fair value through other comprehensive income
+Other financial assets carried at amortised cost
+Others (includes interest on income tax refund)
+FINANCIAL STATEMENTS > Standalone
+0.0
+0.0
+8,909.3
+7.5
+12,714.4
+11,280.4
+NOTE: 32 COST OF MATERIALS CONSUMED
+Raw materials and packing materials
+Inventories at the beginning of the year
+Purchases during the year
+Inventories at the end of the year
+384.9
+Year ended
+March 31, 2019
+Year ended
+March 31, 2018
+7,712.2
+31,144.2
+7,456.7
+22,356.7
+(11,579.3)
+27,277.1
+(7,712.2)
+22,101.2
+NOTE: 33 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+Inventories at the beginning of the year
+Inventories at the end of the year
+in Million
+13,394.5
+(15,907.5)
+(2,513.0)
+Miscellaneous income
+47.1
+8,154.8
+Net gain arising on financial assets measured at fair value through profit or loss
+2.0
+0.7
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net gain/(loss) on sale of financial assets measured at fair value through other comprehensive income
+Gain on sale of investment in subsidiary
+113.0
+95.8
+(0.1)
+183.0
+(15.1)
+1,328.0
+Sundry balances written back, net
+35.6
+142.0
+Insurance claims
+66.6
+96.1
+Lease rental and hire charges
+1,862.4
+Impairment in value of investment, net
+March 31, 2019
+Excise duty on sales
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+Income tax expense recognised in statement of profit and loss
+271.8
+(971.5)
+3,538.1
+(253.9)
+# The tax rate used for reconciliation above is the corporate tax rate of 34.944% (March 31, 2018: 34.608%) at which the Company is liable to pay tax
+on taxable income under the Indian Tax Law.
+Annual Report 2018-19
+132 Sun Pharmaceutical Industries Ltd.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+NOTE: 39 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
+i
+Contingent liabilities
+a Claims against the Company not acknowledged as debts
+SUN
+PHARMA
+As at
+March 31, 2019
+20.2
+(26.4)
+Effect of current/deferred tax relating to merged entities
+102.7
+(1,576.6)
+(2,859.7)
+15.5
+2.8
+8,011.5
+Year ended
+March 31, 2019
+in Million
+Year ended
+March 31, 2018
+Reconciliation of tax expense
+Profit before tax
+Income tax rate (%) applicable to the Company #
+7,194.5
+34.944%
+2,802.5
+* in Million
+As at
+March 31, 2018
+34.608%
+2,514.0
+Effect of income that is exempt from tax
+(1,664.9)
+969.9
+(3,281.8)
+Effect of expenses that are not deductible
+751.8
+Effect of incremental deduction on account of research and development and other allowances
+Withholding tax in respect of income earned outside India
+Income tax credit calculated at income tax rate
+608.9
+592.7
+b
+171.0
+171.0
+g
+Other matters - state electricity board, Punjab Land Preservation Act related matters etc.
+Note: includes, interest till the date of demand, wherever applicable
+89.3
+77.4
+¡
+Provident fund judgement by Hon'ble Supreme Court of India (SC) dated February 28, 2019 is
+being analysed by the Company. The Company has made a provision on prospective basis from
+the date of the SC order. The Company will update its provision, on receiving further clarity.
+Legal proceedings:
+f Octroi demand on account of rate difference
+The Company and / or its subsidiaries are involved in various legal proceedings including
+product liability, contracts, employment claims, anti-trust and other regulatory matters relating
+to conduct of its business. Some of the key matters are discussed below. Most of the legal
+proceedings involve complex issues, which are specific to the case and don't have precedents
+and hence for a majority of these claims, it is not possible to make a reasonable estimate of the
+expected financial effect, if any, that will result from ultimate resolution of the proceedings. This
+is due to a number of factors, including: the stage of the proceedings and the overall length and
+the discovery process; the entitlement of the parties to an action to appeal a decision; the extent
+of the claims, including the size of any potential class, particularly when damages are not specified
+or are indeterminate; the possible need for further legal proceedings to establish the appropriate
+amount of damages, if any; the settlement posture of the other parties to the litigation and any
+other factors that may have a material effect on the litigation. The Company makes it assessment
+of likely outcome, based on the views of internal legal counsel and in consultation with external
+legal counsel representing the Company. The Company also believes that disclosure of the
+amount sought by plaintiffs, would not be meaningful because historical evidence indicates that
+the amounts settled (if any) are significantly different than those claimed by plaintiff's. Some of
+the legal claims against the Company, if decided against the Company may result into significant
+impact on its results of operations of a given period during which the claim is settled.
+Antitrust - Gx Drug Price Fixing:
+US subsidiaries separately have received a Civil Investigative Demand from the U.S. Department
+of Justice pursuant to the False Claims Act seeking information relating to corporate and
+employee records, generic pharmaceutical products and pricing, communications and/
+or agreements with competitors and others regarding the sale of generic pharmaceutical
+products, and certain other related matters. The subsidiaries are in the process of responding
+to the requests.
+Specialty in progress
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+133
+The Company and its subsidiaries is a defendant in a number of putative class action lawsuits and
+individual actions brought by purchasers and payors, as well as a generic manufacturer in US,
+alleging that the Company and its affiliates violated antitrust laws in connection with a 2005 patent
+settlement agreement with Cephalon concerning Modafinil. The cases were transferred to the
+United States District Court for the Eastern District of Pennsylvania for coordinated proceedings.
+The Company has reached settlements with all but one plaintiff.
+US subsidiaries, and in the case of one complaint, a former member of one subsidiary's sales group,
+are defendants along with other pharmaceutical companies in a number of putative class action
+lawsuits and individual actions brought by purchasers and payors of several generic pharmaceutical
+products, as well as State Attorneys Generals, alleging a conspiracy with competitors to fix prices,
+rig bids, or allocate customers, and also an industry-wide conspiracy as to all generic pharmaceutical
+products. The cases have been or expected to be transferred to the United States District Court
+for the Eastern District of Pennsylvania for coordinated proceedings. The Court has sequenced the
+lawsuits into separate groups for purposes of briefing motions to dismiss. Defendants filed motions
+to dismiss complaints in the first group. On October 16, 2018, the Court denied the motions with
+respect to the federal law claims. On February 15, 2019, the Court granted in part and denied in part
+the motions with respect to the state law claims. Certain cases are proceeding in discovery.
+Antitrust - Modafinil:
+(562.2)
+Beginning in 2016, subsidiaries in United States of America (US subsidiaries) separately received
+a grand jury subpoena from the United States Department of Justice, Antitrust Division,
+seeking documents relating to corporate and employee records, generic pharmaceutical
+products and pricing, communications with competitors and others regarding the sale of
+generic pharmaceutical products, and certain other related matters. The subsidiaries are in the
+process of responding to the subpoenas. Certain current and former officers and employees in
+the Companies' respective commercial teams have also received related subpoenas. A similar
+subpoena was received by each subsidiary from the Connecticut Attorney General.
+21.7
+9,029.9
+830.7
+Fine imposed for anti-competitive settlement agreement by European Commission
+Liabilities disputed - appeals filed with respect to :
+Income tax on account of disallowances / additions
+Sales tax on account of rebate / classification
+Excise duty / service tax on account of valuation / cenvat credit
+40,670.7
+118.9
+1,019.0
+47,107.7
+122.5
+1,055.0
+ESIC contribution on account of applicability
+799.5
+130.5
+C
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit,
+enjoyed by the Company
+3,488.2
+3,488.2
+d
+Demand by JDGFT for import duty with respect to import alleged to be in excess of entitlement
+as per the advance license scheme
+17.4
+e
+130.5
+517.5
+h
+NOTE: 38 TAX RECONCILIATION
+10.2
+1.7
+1.6
+366.9
+254.3
+2,214.3
+33,023.5
+1,832.5
+28,321.0
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+131
+NOTE: 37 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE STATEMENT OF PROFIT AND
+LOSS
+in Million
+Salaries, wages and bonus
+Contribution to provident and other funds
+Staff welfare expenses
+Power and fuel
+14.5
+17.1
+24.6
+Specialty in progress
+237.6
+490.9
+Donations
+28.3
+30.8
+Loss on sale / write off of property, plant and equipment and intangible assets, net
+341.0
+(Decrease) / increase of excise duty on inventories
+Rent
+(235.9)
+2,130.4
+(522.7)
+Payments to auditor (net of input credit, wherever applicable)
+For audit
+For other services
+Reimbursement of expenses
+Provision in respect of losses of a subsidiary
+Miscellaneous expenses
+Net (gain) / loss on foreign currency transactions [includes exchange gain of 92.9 Million (Previous year
+exchange loss of ₹ 269.0 Million) in respect of provision for losses of a subsidiary]
+Rates and taxes
+63.7
+Repairs and maintenance
+Travelling and conveyance
+100.9
+106.4
+Communication
+43.8
+26.8
+Professional, legal and consultancy
+1,523.7
+26.0
+771.7
+4.8
+342.1
+9,542.5
+Miscellaneous income
+8,531.8
+Insurance
+Less :
+Receipts from research activities
+Loss on sale / write off of property, plant and equipment and intangible assets, net
+Miscellaneous expenses
+12.7
+537.3
+311.7
+Year ended
+March 31, 2019
+3,099.4
+32.8
+109.1
+19.4
+2,764.6
+28.8
+3,000.4
+286.4
+288.4
+Consumption of materials, stores and spare parts
+Printing and stationery
+360.1
+55.0
+11.5
+52.4
+Year ended
+March 31, 2018
+3,167.3
+155.7
+62.2
+772.9
+31.7
+88.4
+566.0
+87.4
+461.2
+87.5
+353.5
+100.3
+292.4
+355.0
+314.1
+115.2
+305.2
+85.8
+86.7
+130.0
+(28.9)
+* in Million
+As at March 31, 2018
+Pension Fund
+(Unfunded)
+132.3
+Gratuity
+(Funded)
+(76.3)
+85.5
+(122.0)
+(68.2)
+19.4
+(113.6)
+80.2
+125.8
+Gratuity
+(Funded)
+119.8
+(120.5)
+(110.5)
+(17.9)
+134.4
+295.8
+(a) The Company has given certain premises and plant and equipment under operating lease or leave and license agreements.
+These are generally not non-cancellable and periods range between 11 months to 10 years under leave and licence / lease
+and are renewable by mutual consent on mutually agreeable terms. The Company has received refundable interest free
+security deposits where applicable in accordance with the agreed terms. (b) The Company has obtained certain premises
+for its business operations (including furniture and fittings, therein as applicable) under operating lease or leave and license
+agreements. These are generally not non-cancellable and periods range between 11 months to 10 years under leave and
+licence, or longer for other lease and are renewable by mutual consent on mutually agreeable terms. The Company has given
+refundable interest free security deposits in accordance with the agreed terms. These refundable security deposits have been
+valued at amortised cost under relevant Ind AS (c) Lease receipts / payments are recognised in the statement of profit and
+loss under "Lease rental and hire charges" and "Rent" in Note 31 and 36 respectively. The Company does not have any lease
+payment commitment in non cancellable leases.
+303.6
+SUN
+PHARMA
+NOTE: 49 EMPLOYEE SHARE-BASED PAYMENT PLANS
+The Company operates employee stock option scheme namely, SUN Employee Stock Option Scheme-2015 (SUN-ESOS 2015)
+for the grant of stock options to the eligible personnel. Options are granted at the discretion of the Committee to selected
+employees depending upon certain criterion. Each option comprises one underlying equity share.
+The movement of the options (post split) granted under SUN-ESOS 2015
+Outstanding at the commencement of the year
+Exercised during the year $
+Lapsed during the year
+Outstanding at the end of the year
+Exercisable at the end of the year*
+* Includes options exercised, pending allotment
+$ Weighted average share price on the date of exercise * 492.6
+Pension Fund
+(Unfunded)
+Outstanding at the commencement of the year
+Exercised during the year $
+for the year ended March 31, 2019
+84.8
+Notes to the Standalone Financial Statements
+Annual Report 2018-19
+151.9
+273.8
+2,143.7
+2,023.9
+174.4
+1,138.5
+9.9
+67.3
+1,669.1
+950.4
+9.9
+67.3
+2,459.2
+14.0
+NOTE: 48 LEASES
+146 Sun Pharmaceutical Industries Ltd.
+As at March 31, 2019
+10.00%
+The contribution expected to be made by the Company for gratuity,
+during financial year ending March 31, 2020 is 81.1 Million (Previous
+year: 241.1 Million)
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+Pension Fund
+Gratuity
+(Unfunded)
+(Funded)
+7.10%
+7.10%
+7.50%
+7.50%
+N.A.
+7.10%
+N.A.
+7.50%
+N.A.
+As at March 31, 2019
+N.A.
+As at March 31, 2018
+Interest rate guarantee
+Mortality
+1,930.7
+Lapsed during the year
+191.1
+131.5
+(24.7)
+38.1
+230.7
+591.1
+(250.8)
+(141.0)
+2,696.7
+2,550.4
+Assumptions:
+Discount rate
+Expected return on plan assets
+Expected rate of salary increase
+Employee turnover
+145
+11.65%
+N.A.
+for the year ended March 31, 2019
+Sensitivity analysis:
+The sensitivity analysis have been determined based on method that
+extrapolates the impact on defined benefit obligation as a reasonable
+change in key assumptions occuring at the end of the reporting period
+Impact on defined benefit obligation
+Delta effect of +1% change in discount rate
+Delta effect of -1% change in discount rate
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee turnover
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation for next
+1st year
+2nd year
+3rd year
+4th year
+5th year
+Thereafter
+The major categories of plan assets are as under
+Central government securities
+Bonds and securities of public sector / financial institutions
+Insurer managed funds (Funded with LIC, break-up not available)
+Surplus fund lying uninvested
+Notes to the Standalone Financial Statements
+N.A.
+FINANCIAL STATEMENTS > Standalone
+60
+N.A.
+N.A.
+Indian Assured
+Indian Assured
+Indian Assured
+Indian Assured
+Lives Mortality Lives Mortality
+(2006-08)
+15.80%
+(2006-08)
+N.A.
+N.A.
+Lives Mortality Lives Mortality
+(2006-08)
+N.A.
+60
+N.A.
+(2006-08)
+15.00%
+Specialty in progress
+Outstanding at the end of the year*
+In respect of any present obligation as a result of past event that could lead to a probable outflow of resources, provisions
+has been made, which would be required to settle the obligation. The said provisions are made as per the best estimate
+of the management and disclosure as per Ind AS 37 - “Provisions, Contingent Liabilities and Contingent Assets" has
+been given below:
+*
+1,417.3
+(5,724.3)
+29.8
+22,561.8
+(2,520.5)
+25,815.3
+(*) includes provision for trade commitments, discounts, rebates, price reduction and product returns
+Annual Report 2018-19
+148 Sun Pharmaceutical Industries Ltd.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+SUN
+PHARMA
+NOTE : 54 USE OF ESTIMATES, JUDGMENTS AND ASSUMPTIONS
+The preparation of the Company's financial statements requires the management to make judgements, estimates and
+assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,
+and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and underlying
+assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the
+estimates are revised and in any future periods affected. In particular, information about significant areas of estimation
+uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts
+recognised in the financial statements is included in the following notes:
+a) Litigations [Refer Note 2 (2.2) (m) and Note 39]
+b) Revenue [Refer Note 2(2.2)(n)]
+265.8
+NOTE: 55 REVENUE FROM CONTRACTS WITH CUSTOMERS
+770.6
+At the end of the year
+53.4
+53.4
+726.9
+These loans have been granted to the above entities for the purpose of their business.
+NOTE: 53
+Year ended
+March 31, 2019
+Product and
+Sales related *
+25,815.3
+in Million
+Year ended
+March 31, 2018
+Product and
+Sales related *
+24,997.0
+2,272.6
+At the commencement of the year
+Add: Transfer on merger [Refer Note 56 (11)]
+Add: Provision for the year
+Add: Unwinding of discounts on provisions
+Add / (less): Foreign currency exchange fluctuation
+Less: Utilisation / settlement/ reversal
+1,006.8
+46.7
+2,575.0
+258.0
+0.1
+253.4
+Ind AS 115 "Revenue from contracts with customers" was issued on March 28, 2018 and supersedes Ind AS 11 "Construction
+Contracts" and Ind AS 18 "Revenue" and it applies, with limited exceptions, to all revenue arising from contracts with its
+customers. The Company adopted Ind AS 115 using the modified retrospective method of adoption with the date of initial
+application of April 01, 2018 which does not require restatement of comparative period. The Company elected to apply the
+standard to all contracts as at April 01, 2018. There is no impact to be recognised at the date of initial application as an
+adjustment to the opening balance of retained earnings.
+* in Million
+Year ended
+March 31, 2018
+Contract balances
+Trade receivables
+Contract assets
+50,314.7
+52,714.4
+Contract liabilities
+3,014.1
+404.7
+Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
+revenue received from customer for which performance obligation has not yet been completed.
+The performance obligation is satisfied when control of the goods or services are transferred to the customers based on the
+contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
+NOTE: 56
+1 During year ended March 31, 2018, Zenotech Laboratories Limited ('Zenotech'), an associate of the Company, undertook
+a rights issue of its equity shares in which the Company participated and subscribed to equity shares worth 855 Million.
+On account of such participation, Zenotech became a subsidiary of the Company effective July 25, 2017. In compliance
+with the relevant provisions of Ind AS 103 "Business Combination", the Company had reversed impairment during year
+ended March 31, 2018 in the books to the extent of fair value of equity shares determined on the basis of rights issue
+price amounting to 725.7 Million.
+Specialty in progress
+2,550.4
+As at
+March 31, 2019
+The reconciling items of revenue recognised in the statement of profit and loss with the contracted price are as follows
+in Million
+As at
+87,744.1
+Revenue as per contracted price, net of returns
+Less:
+Provision for sales return
+Rebates, discounts and price reduction
+Year ended
+March 31, 2019
+118,830.5
+March 31, 2018
+116,294.3
+(643.1)
+(569.7)
+(20,354.5)
+(27,980.5)
+(20,997.6)
+(28,550.2)
+97,832.9
+Revenue from contracts with customers
+Revenue from contract with customers include sales made to Aditya Medisales Limited amounting to 30,913.7 Million
+(March 31, 2018: 29,764.2 Million)
+0.1
+2,575.0
+204.6
+31, 2018
+0.9
+158,739
+562.5
+562.5
+0.9
+March 31, 2018
+Stock options
+(numbers)
+Range of
+exercise prices
+(₹)
+Weighted-
+average exercise
+Weighted-
+average
+remaining
+prices (*)
+contractual life
+(years)
+401,678
+270.0-562.5
+562.5
+462.9
+562.5
+275.0
+March 31, 2019
+Stock options
+(numbers)
+Range of
+exercise prices
+(₹)
+Weighted-
+average exercise
+prices (*)
+Weighted-
+average
+remaining
+contractual life
+(years)
+263,680
+270.0-562.5
+450.3
+1.5
+(11,790)
+270.0-562.5
+324.9
+(93,151) 270.0-562.5
+158,739
+1.9
+(18,893) 270.0-562.5
+(119,105) 270.0-562.5
+263,680 270.0-562.5
+263,680 270.0-562.5
+480.5
+(f) USD 50 Million (March 31, 2018: USD Nil) equivalent to 3,454.5 Million (March 31, 2018: Nil). The loan was
+taken on October 03, 2018 and is repayable in 2 equal installments of USD 25 Million each. The first installment of
+USD 25 Million is due on October 01, 2021 and last installment of USD 25 Million is due on October 03, 2022.
+(II) Secured term loan from department of biotechnology of 108.2 Million (March 31, 2018: 108.2 Million) has been
+secured by hypothecation of movable assets of the Company. The loan is repayable in 10 equal half yearly installments
+commencing from December 14, 2019, last installment is due on June 14, 2024.
+The Company has not defaulted on repayment of loan and interest payment thereon during the year. The aforementioned
+unsecured ECBs are availed from various banks at floating rate linked to Libor (2.96% as at March 31, 2019) and secured loan
+from department of biotechnology have been availed at a range from 2% to 3%
+NOTE: 51 RELATED PARTY DISCLOSURES (IND AS 24) AS PER ANNEXURE “A”
+NOTE: 52 LOANS / ADVANCES GIVEN TO SUBSIDIARIES AND ASSOCIATES
+Loans / advances outstanding from subsidiaries
+Skisen Labs Private Limited, India
+Sun Pharmaceutical Medicare Limited, India
+Zenotech Laboratories Limited, India
+Faststone Mercantile Company Private Limited, India
+Loans / advances outstanding from an associate
+Loans
+Interest bearing with specified payment schedule:
+Zenotech Laboratories Limited, India
+As at
+March 31, 2019
+Maximum
+balance
+March 31, 2019
+As at
+March 31, 2018
+balance March
+* in Million
+Maximum
+(e) USD 100 Million (March 31, 2018: USD 100 Million) equivalent to 6,909.0 Million (March 31, 2018: 6,493.0
+Million). The loan was taken on June 04, 2013 and is repayable in 3 installments viz., the first installment of USD
+30 Million is due on May 31, 2020, second installment of USD 30 Million is due on November 30, 2020 and last
+installment of USD 40 Million is due on November 30, 2021
+147
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+488.1
+450.3
+1.5
+450.3
+1.5
+* Includes options exercised, pending allotment
+$ Weighted average share price on the date of exercise 565.1
+Exercisable at the end of the year
+NOTE: 50 BORROWINGS
+(I) Unsecured External Commercial Borrowings (ECBs) has 6 loans aggregating of USD 290 Million (March 31, 2018 : USD
+256 Million) equivalent to 20,036.1 Million (March 31, 2018: 16,622.1 Million). For the ECB loans outstanding as at
+March 31, 2019, the terms of repayment for borrowings are as follows:
+(a) USD 10 Million (March 31, 2018: USD 26 Million) equivalent to 690.9 Million (March 31, 2018 : 1,688.2 Million).
+The loan was taken in tranches of USD 16 Million on March 24, 2017 and USD 10 Million on June 30, 2017. The first
+installment of USD 16 Million has been repaid during the year ended March 31, 2019 and last installment of USD 10
+Million is due on June 28, 2019.
+(b) USD 50 Million (March 31, 2018: USD 50 Million) equivalent to 3,454.5 Million (March 31, 2018 : * 3,246.5
+Million). The loan was taken on August 11, 2015 and is repayable on August 08, 2019.
+(c) USD 30 Million (March 31, 2018: USD 30 Million) equivalent to 2,072.7 Million (March 31, 2018 : 1947.9 Million).
+The loan was taken on September 08, 2017 and is repayable on September 07, 2020.
+(d) USD 50 Million (March 31, 2018: USD 50 Million) equivalent to ₹ 3,454.5 Million (March 31, 2018 : ₹ 3,246.5
+Million). The loan was taken on September 20, 2012 and is repayable in 2 equal installments of USD 25 Million each.
+The first installment of USD 25 Million is due on September 20, 2019 and last installment of USD 25 Million is due on
+September 18, 2020.
+Specialty in progress
+FINANCIAL STATEMENTS > Standalone
+Details of long term borrowings and current maturities of long term debt (included under other current financial
+liabilities)
+(Funded)
+Retirement Age (years)
+Gratuity
+56,069.1
+3,209.1
+3.0
+185.3
+584.9
+60,051.4
+b) Sensitivity
+For the years ended March 31, 2019 and March 31, 2018, every 5% strengthening in the exchange rate between the Indian
+rupee and the respective currencies for the above mentioned financial assets/liabilities would increase the Company's
+profit and increase the Company's equity by approximately 1,592.0 Million and ₹ 1,703.8 Million respectively. A 5%
+weakening of the Indian rupee and the respective currencies would lead to an equal but opposite effect.
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the
+exposure at the end of the reporting period does not reflect the exposure during the year.
+c) Derivative contracts
+The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in US
+Dollars, Euros, South African Rand and Russian Rouble, and foreign currency debt is primarily in US Dollars. The Company
+uses foreign currency forward contracts, foreign currency option contracts and currency swap contracts (collectively,
+"derivatives") to mitigate its risk of changes in foreign currency exchange rates. The counterparty for these contracts is
+generally a bank or a financial institution.
+Hedges of highly probable forecasted transactions
+The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable
+forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow
+hedges is recorded as in other comprehensive income, and re-classified in the income statement as revenue in the period
+corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow hedges is
+immediately recorded in the statement of profit and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a gain of
+* 535.2 Million for the year ended March 31, 2019 and gain of 26.6 Million for the year ended March 31, 2018 in other
+comprehensive income. The Company also recorded hedges as a component of revenue, loss of 117.4 Million for the year
+ended March 31, 2019 and Nil for the year ended March 31, 2018 on occurrence of forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and liabilities
+in foreign currencies, and for which no hedge accounting is applied, are recognised in the statement of profit and loss.
+The changes in fair value of the forward contracts and option contracts, as well as the foreign exchange gains and losses
+relating to the monetary items, are recognised in the statement of profit and loss.
+Specialty in progress
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+141
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts -
+trade commitments
+claims, recall charges and
+8,716.1
+16,027.2
+16,027.2
+5,759.4
+1,351.6
+15.5
+Other receivables - from
+2,432.1
+23,224.3
+318.3
+2,432.1
+related parties
+14,219.9
+2,965.3
+1,663.0
+5,759.4
+Amount in Million
+1,367.1
+Financial liabilities
+Borrowings
+33,698.7
+Trade payables
+6,343.2
+1,609.4
+1,599.7
+35,308.1
+3.0
+185.3
+584.9
+25,974.7
+Currency
+Buy / Sell
+Cross Currency
+Forward contracts
+RUB
+Sell
+USD
+$ 4.5
+$5.0
+Forward contracts
+GBP
+Sell
+USD
+$ 8.2
+$4.9
+Forward contracts
+EUR
+Sell
+USD
+$9.8
+Forward contracts
+ZAR
+(Funded)
+USD
+$ 21.0
+$2.8
+1,623.0
+40.0
+$ 7.4
+Sell
+As at
+March 31, 2019
+As at
+March 31, 2018
+Derivatives designated as hedges
+Forward contracts
+ZAR
+Sell
+INR
+ZAR 480.0
+Forward contracts
+USD
+USD
+Sell
+$ 120.5
+Derivatives not designated as hedges
+Forward contracts
+USD
+Buy
+INR
+$ 27.3
+$ 18.2
+Forward contracts
+AUD
+INR
+Forward contracts
+2,873.5
+91.8
+Cash and cash equivalents
+90.3
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
+market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of
+market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to
+all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term
+debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market
+value of its investments. Thus, the Company's exposure to market risk is a function of investing and borrowing activities and
+revenue generating and operating activities in foreign currencies.
+Foreign exchange risk
+The Company's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily
+in US Dollars, Euros, South African Rand and Russian Rouble) and foreign currency borrowings (primarily in US Dollars). As a
+result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company's revenues and expenses
+measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between the Indian rupee and these
+foreign currencies have changed substantially in recent periods and may continue to fluctuate substantially in the future.
+Consequently, the Company uses both derivative and non-derivative financial instruments, such as foreign exchange forward
+contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate the risk of changes in
+foreign currency exchange rates in respect of its highly probable forecasted transactions and recognised assets and liabilities.
+a) Significant foreign currency risk exposure relating to trade receivables, other receivables, cash and cash equivalents,
+borrowings and trade payables
+in Million
+As at March 31, 2019
+South African
+US Dollar
+Euro
+Russian Rouble
+Others
+Total
+Rand
+Financial assets
+Trade receivables
+36,364.2
+Cash and cash equivalents
+2,078.4
+2,602.5
+712.1
+1,979.6
+28.2
+4,014.1
+90.3
+90.3
+90.3
+112,673.0
+2,672.9
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+Non derivative
+Borrowings
+Trade payables
+Other financial liabilities
+Derivative
+Forward exchange contracts
+Market risk
+139
+1,896.4
+11.7
+Less than 1 year
+More than
+3 years
+* in Million
+As at
+March 31, 2018
+53,923.8
+25.659.7
+17,422.0
+97,005.5
+12,985.5
+2,672.9
+69,582.2
+25,659.7
+9.1
+17,431.1
+12,994.6
+1-3 years
+46,856.8
+2,830.4
+Other receivables - from
+1,094.7
+2.3
+158.7
+585.5
+89,079.9
+Annual Report 2018-19
+140 Sun Pharmaceutical Industries Ltd.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+SUN
+87,238.7
+PHARMA
+As at March 31, 2018
+US Dollars
+Euro
+Russian Rouble
+South African
+Rand
+Others
+Total
+Financial assets
+Trade receivables
+11,616.8
+* in Million
+171.0
+trade commitments
+30,126.9
+7,552.7
+7,552.7
+related parties
+45,995.3
+3,314.6
+2,007.8
+4,014.1
+1,908.1
+57,239.9
+Financial liabilities
+claims, recall charges and
+Borrowings
+50,428.8
+Trade payables
+6,683.0
+1,094.7
+2.3
+158.7
+585.5
+8,524.2
+Product settlement,
+30,126.9
+50,428.8
+CAD
+Sell
+USD
+Reconciliation of defined benefit obligations
+Obligation as at the beginning of the year
+903.7
+2,625.8
+969.5
+2,885.3
+Current service cost
+245.2
+266.8
+Interest cost
+67.7
+196.8
+66.0
+196.5
+Benefits paid
+(87.0)
+(250.8)
+(87.4)
+(141.0)
+Actuarial (gains)/losses on obligations
+- due to change in demographic assumptions
+(619.9)
+(44.4)
+(229.9)
+64.9
+245.2
+266.8
+Sell
+196.8
+66.0
+196.5
+(191.1)
+(131.5)
+Expense charged to the statement of profit and loss
+Remeasurement of defined benefit obligation recognised in other
+comprehensive income
+67.7
+(15.4)
+250.9
+331.8
+Actuarial loss / (gain) on defined benefit obligation
+64.9
+(254.6)
+(44.4)
+(581.8)
+Actuarial gain on plan assets
+24.7
+(38.1)
+Expense/(income) charged to other comprehensive income
+66.0
+(114.2)
+- due to change in financial assumptions
+35.7
+(2,696.7)
+2,625.8
+(2,550.4)
+(134.3)
+75.4
+Annual Report 2018-19
+144 Sun Pharmaceutical Industries Ltd.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+Reconciliation of plan assets
+Plan assets as at the beginning of the year
+2,562.4
+Expected return
+Employer's contribution during the year
+Benefits paid
+Plan assets as at the year end
+SUN
+PHARMA
+Year ended
+March 31, 2019
+* in Million
+Year ended
+March 31, 2018
+Gratuity
+Actuarial gain
+Expected return on plan assets
+(Funded)
+Gratuity
+(160.0)
+(50.0)
+(406.5)
+- due to experience
+29.2
+(79.2)
+5.6
+(61.1)
+Obligation as at the year end
+949.3
+(Funded)
+2,562.4
+2,625.8
+Reconciliation of liability/(asset) recognised in the Balance sheet
+Present value of commitments (as per Actuarial Valuation)
+Fair value of plan assets
+Net (asset) / liability recognised in the financial statement
+* in Million
+As at
+March 31, 2019
+As at
+March 31, 2018
+Gratuity
+903.7
+Interest cost
+67.7
+Expense recognised in the statement of profit and loss (Refer Note 34)
+The amount of interest due and payable for the year
+The amount of interest accrued and remaining unpaid at the end of the accounting year
+The amount of further interest due and payable even in the succeeding year, until such date when the
+interest dues as above are actually paid
+As at
+March 31, 2019
+659.8
+(Interest - Nil)
+in Million
+As at
+March 31, 2018
+105.5
+(Interest - Nil)
+659.8
+105.5
+Annual Report 2018-19
+142 Sun Pharmaceutical Industries Ltd.
+Interest due thereon remaining unpaid to any supplier as at the end of the accounting year
+The amount of interest paid along with the amounts of the payment made to the supplier beyond
+the appointed day
+Notes to the Standalone Financial Statements
+NOTE: 46 EARNINGS PER SHARE
+Profit for the year (₹ in Million) - used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic earnings per share (A)
+Add: Dilution effect of employee stock option (B)
+Weighted average number of shares used in computing diluted earnings per share (A + B)
+Nominal value per share (in)
+Basic earnings per share (in ₹)
+SUN
+PHARMA
+As at
+Current service cost
+As at
+March 31, 2018
+8,166.0
+2,399,326,681
+for the year ended March 31, 2019
+3,056.4
+Principal amount remaining unpaid to any supplier as at the end of the accounting year
+Exposure to market risk with respect to commodity prices primarily arises from the Company's purchases and sales of
+active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients.
+These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the
+Company's raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the
+Company's active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest
+portion of the Company's cost of revenues. Commodity price risk exposure is evaluated and managed through operating
+procedures and sourcing policies. As of March 31, 2019, the Company had not entered into any material derivative
+contracts to hedge exposure to fluctuations in commodity prices.
+$3.6
+Currency cum interest rate swaps
+USD
+Buy
+INR
+$ 50.0
+$ 50.0
+Currency options
+USD
+Buy
+NOTE: 45 DISCLOSURES UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
+The information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on
+the basis of information available with the Company. This has been relied upon by the auditors.
+INR
+Interest rate swaps (floating to fixed)
+USD
+Buy
+INR
+$ 50.0
+$ 150.0
+Interest rate risk
+The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in interest
+rates. The Company's Treasury Department monitors the interest rate movement and manages the interest rate risk by
+evaluating interest rate swaps etc. based on the market / risk perception.
+For the years ended March 31, 2019 and March 31, 2018, every 50 basis point decrease in the floating interest rate component
+applicable to its loans and borrowings would increase the Company's profit by approximately 217.6 Million and * 122.2
+Million respectively. A 50 basis point increase in floating interest rate would have led to an equal but opposite effect.
+Commodity rate risk
+$ 100.0
+2,399,296,653
+March 31, 2019
+65,420
+a) Gratuity
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund Scheme. It is
+governed by the Payment of Gratuity Act, 1972. Under the Gratuitiy Act, employees are entitled to specific benefit at the time
+of retirement or termination of the employment on completion of five years or death while in employement. The level of benefit
+provided depends on the member's length of service and salary at the time of retirement/termination age. Provision for gratuity
+is based on actuarial valuation done by an independent actuary as at the year end. Each year, the Company reviews the level of
+funding in gratuity fund and decides its contribution. The Company aims to keep annual contributions relatively stable at a level
+such that the fund assets meets the requirements of gratuity payments in short to medium term.
+3,575
+The Company has an obligation towards pension, a defined benefit retirement plan, with respect to certain employees, who
+had already retired before March 01, 2013 and will continue to receive the pension as per the pension plan.
+Risks
+These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
+i) Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by
+reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is
+below this rate, it will create a plan deficit. However, the risk is partially mitigated by investment in LIC managed fund.
+ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset
+by an increase in the return on the plan's debt investments.
+iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of
+the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan
+participants will increase the plan's liability.
+Specialty in progress
+FINANCIAL STATEMENTS > Standalone
+Defined benefit plan
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
+participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
+Other long term benefit plan
+Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company policy
+with corresponding (gain) / charge to the statement of profit and loss amounting to 275.6 Million [March 31, 2018:
+*(78.7) Million] and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and
+employee compensation.
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as at the
+year end using the 'Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating to defined
+benefit obligation are recognised in other comprehensive income whereas gains and losses in respect of other long term
+employee benefit plans are recognised in profit or loss.
+Year ended March 31, 2019
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+* in Million
+Year ended March 31, 2018
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+143
+0.4
+b) Pension fund
+36.9
+2,399,330,257 2,399,362,073
+1
+1
+3.4
+1.3
+3.4
+0.8
+Diluted earnings per share (in)
+NOTE: 47 EMPLOYEE BENEFIT PLANS
+Defined contribution plan
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC) and
+other Funds which covers all regular employees. While both the employees and the Company make predetermined contributions
+to the Provident Fund and ESIC, contribution to the Family Pension Fund and other Statutory Funds are made only by the
+Company. The contributions are normally based on a certain percentage of the employee's salary. Amount recognised as
+expense in respect of these defined contribution plans, aggregate to 702.9 Million (March 31, 2018: 676.3 Million).
+1.3
+Contribution to Superannuation Fund
+Contribution to Provident Fund and Family Pension Fund
+37.1
+72.7
+64.9
+566.3
+Product settlement,
+March 31, 2018
+* in Million
+Year ended
+Year ended
+March 31, 2019
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+600.1
+Evaluated the disclosures in the consolidated Ind AS
+related to accounting.
+Tested supporting workings and evidences
+Traced the closing receivable balance with the confirmation
+received from AML.
+•
+Specialty in progress
+Tested the working for valuation of such inventory on
+a sample basis.
+AML by the Group as at March 31, 2019 on a test check basis.
+financial statements.
+Post implementation of Goods and Service Tax
+("GST") with effect from July 01, 2017, revenue from
+contracts with customers is disclosed net of GST.
+Revenue from contracts with customers for the previous
+year included excise duty which was subsumed in GST.
+Revenue from contracts with customers for the year
+ended March 31, 2018 includes excise duty for the period
+ended June 30, 2017. Accordingly, revenue from contracts
+with customers for the year ended March 31, 2019 are
+not comparable with year ended March 31, 2018.
+•
+8
+7
+Holds voting power of 83.36% (beneficial ownership 76.54%) [March 31, 2018: 83.21% (beneficial ownership 74.82%)]
+Zenotech Laboratories Limited has cease to be an associate and has become subsidiary of Sun Pharmaceutical Industries Limited with effect from
+July 27, 2017 [Refer Note 56 (1)]
+During previous year, pursuant to scheme of arrangement u/s 230 to 232 of Companies Act 2013, for amalgamation of Sun Pharma Medisales
+Private Limited, Ranbaxy Drugs Limited, Gufic Pharma Limited and Vidyut Investments Limited into the company with effect from April 01, 2017
+[Refer Note 56 (10)]
+Dissolved/Liquidated during the previous year
+Dissolved/Liquidated during the year
+Incorporated/Acquired during the previous year
+Incorporated/Acquired during the year
+6
+2345
+2
+1
+Footnote
+Asepco Solutions Private Limited
+Ranbaxy GmbH has been merged with Basics GmbH w.e.f April 01, 2018
+PV Power Technologies Private Limited
+9
+10 Merged with Sun Pharmaceutical Industries Inc. in previous year
+Others
+Associates
+Subsidiaries
+Purchase of property, plant and equipment
+Others
+Subsidiaries
+Purchase of goods
+Type of Transaction
+(II) Detail of related party transaction during the year ended March 31, 2019:
+IND AS- 24 - "RELATED PARTY DISCLOSURES"
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+FINANCIAL STATEMENTS > Standalone
+Specialty in progress
+11 Merged with Sun Pharma Switzerland Limited in previous year
+Taro Pharmaceuticals Canada, Ltd. has been merged with Taro Pharmaceuticals Inc. w.e.f. April 01, 2018
+Revenue from contracts with customers, net of returns
+Subsidiaries
+United Medisales Private Limited
+Sidmak Laboratories (India) Private Limited
+Key Managerial Personnel (KMP)
+d
+Medinstill Development LLC
+Zenotech Laboratories Limited (Refer Footnote 6)
+Associate
+Artes Biotechnology GmbH
+S&I Ophthalmic LLC (Refer Footnote 4)
+C
+b
+Names of related parties where there are transactions and description of relationships
+Joint Ventures
+Sun Pharma Distributors Limited (Refer Footnote 1)
+Pola Pharma Inc. (Refer Footnote 1)
+Kayaku Co., Ltd. (Refer Footnote 1)
+Zenotech Farmaceutica Do Brasil Ltda (Refer Footnote 2)
+Dusa Pharmaceuticals, Inc.
+Alkaloida Sweden AB (Refer Footnote 3)
+Taro Pharmaceutical India Private Limited (Refer Footnote 4)
+Dilip S. Shanghvi
+Aditya Medisales Limited
+Sudhir V. Valia
+Israel Makov
+Ramdev Chemicals Private Limited
+Sun Petrochemicals Private Limited
+Sun Pharma Advanced Research Company Limited
+Others (Entities in which the KMP and relatives of KMP have control or significant influence)
+Makov Associates Limited
+f
+Vidhi Shanghvi
+Aalok Shanghvi
+e
+Wholetime Director
+Chairman and Non-Executive Director
+Wholetime Director
+Wholetime Director
+Managing Director
+Relatives of Key Managerial Personnel
+Kalyansundaram Subramanian
+Sailesh T. Desai
+Taro Pharmaceuticals Canada, Ltd. (Refer Footnote 9)
+Others
+Subsidiaries
+43.2
+128.1
+684.9
+129.8
+149.5
+151.1
+2,310.4
+2,902.7
+2,459.9
+3,053.8
+* in Million
+Year ended
+March 31, 2018
+Year ended
+March 31, 2019
+ANNEXURE "A"
+153
+Subsidiaries
+1.7
+Dividend income on preference shares
+641.7
+69,121.0
+615.2
+40.9
+559.6
+1,215.7
+1,130.9
+585.1
+29.3
+516.5
+0.5
+277.4
+21.5
+25.0
+22.0
+302.4
+29,774.4
+30,922.0
+39,346.6
+41,114.8
+72,036.8
+Sale of property, plant and equipment
+Subsidiaries
+Subsidiaries
+Reimbursement of expenses received
+Others
+Joint ventures
+Subsidiaries(**)
+Rendering of service
+Others
+Joint ventures
+Associates
+Subsidiaries
+Reimbursement of expenses paid
+Others
+Joint ventures
+Subsidiaries
+Receiving of service
+Others
+Subsidiaries
+Interest on loans repaid
+Others
+Subsidiaries
+Loan repaid
+Subsidiaries
+Loan taken
+Subsidiaries
+Sales of investment
+Subsidiaries
+Advance received back
+Subsidiaries
+Advance given
+Subsidiaries
+Interest on loans received back
+Subsidiaries
+Loans received back
+Subsidiaries
+Loans / deposit given
+Purchase of investment
+Taro Pharmaceutical Laboratories Inc
+One Commerce Drive LLC
+Taro Pharmaceuticals (UK) Limited (Refer Footnote 3)
+3 Skyline LLC
+Sun Pharmaceutical (Bangladesh) Limited
+Green Eco Development Centre Limited
+Subsidiaries
+Names of related parties and description of relationships
+IND AS-24 - "RELATED PARTY DISCLOSURES”
+a
+151
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+FINANCIAL STATEMENTS > Standalone
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+SUNIL R. AJMERA
+Company Secretary
+SUDHIR V. VALIA
+Wholetime Director
+C. S. MURALIDHARAN
+Chief Financial Officer
+Specialty in progress
+Sun Pharmaceutical Industries, Inc.
+Mumbai, May 28, 2019
+Sun Farmaceutica Do Brasil Ltda.
+SPIL De Mexico S.A. DE C.V.
+Sun Pharma Switzerland Limited
+Universal Enterprises Private Limited
+2 Independence Way LLC
+URL PharmPro, LLC
+Mutual Pharmaceutical Company Inc.
+Dungan Mutual Associates, LLC
+Ranbaxy Drugs Limited (Refer Footnote 5)
+Vidyut Investments Limited (Refer Footnote 5)
+Gufic Pharma Limited (Refer Footnote 5)
+Ranbaxy Pharmacie Generiques
+Softdeal Trading Company Private Limited
+Sun Pharma Holdings
+Realstone Multitrade Private Limited
+Skisen Labs Private Limited
+Faststone Mercantile Company Private Limited
+Neetnav Real Estate Private Limited
+Sun Pharma Laboratories Limited
+Sun Pharma De Venezuela, C.A.
+OOO "Sun Pharmaceutical Industries" Limited
+Sun Pharmaceutical Peru S.A.C.
+Sun Pharma De Mexico S.A. DE C.V.
+Sun Pharma East Africa Limited
+Pharmalucence, Inc.
+DILIP S. SHANGHVI
+Managing Director
+14 The Board of Directors of the Company at its meeting
+held on May 25, 2018, had approved the Scheme of
+Arrangement between the Company, Sun Pharma
+(Netherlands) B.V. and Sun Pharmaceutical Holdings
+USA Inc. (both being wholly owned subsidiaries of the
+Company) which inter-alia, envisages spin-off w.e.f.
+April 01, 2017 of the specified investment undertaking
+1 and 2 (as defined in the Scheme of Arrangement) of
+the Company. The scheme shall be effective post receipt
+of requisite approvals and accordingly, the standalone
+financial statements do not reflect the impact, if any, on
+account of the schemes.
+150 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+FINANCIAL STATEMENTS > Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2019
+149
+2 Intangible assets consisting of trademarks, designs,
+technical knowhow, non compete fees and other
+intangible assets are available to the Company in
+perpetuity. The amortisable amount of intangible assets
+is arrived at based on the management's best estimates
+of useful lives of such assets after due consideration as
+regards their expected usage, the product life cycles,
+technical and technological obsolescence, market demand
+for products, competition and their expected future
+benefits to the Company.
+3 In respect of an antitrust litigation, relating to a product
+Modafinil, the Company and one of its wholly-owned
+subsidiaries had previously entered into settlements with
+certain plaintiffs (Apotex Corporation, Retailer Purchasers
+and end-payor plaintiffs) for an aggregate amount of
+USD 150.5 Million. The equivalent Indian rupee liability
+of 9,505.0 Million and 240.0 Million was provided
+in the books of account in year ended March 31, 2018.
+The amount of 9,505.0 Million was disclosed as an
+exceptional item.
+During the current financial year, the Company has
+entered into settlement agreement with the Direct
+Purchaser Plaintiffs; while continuing to litigate as well
+as negotiate the case with the remaining one plaintiff.
+The Company has accounted for 12,143.8 Million
+towards the settlement agreement and a likely amount
+payable to remaining plaintiff in the antitrust litigation
+relating to the product Modafinil.
+4 Since the US-FDA import alert at Karkhadi facility in
+March 2014, the Company remained fully committed
+to implement all corrective measures to address the
+observations made by the US-FDA with the help of
+third party consultant. The Company has completed all
+the action items to address the US-FDA warning letter
+observations issued in May 2014. It is continuing to work
+closely and co-operatively with the US-FDA to resolve the
+matter for lifting the import alert. The contribution of this
+facility to Company's revenues is not significant.
+5 The US-FDA, on January 23, 2014, had prohibited using
+API manufactured at Toansa facility for manufacture of
+finished drug products intended for distribution in the
+U.S. market. Consequentially, the Toansa manufacturing
+facility was subject to certain provisions of the consent
+decree of permanent injunction entered in January 2012
+by erstwhile Ranbaxy Laboratories Ltd (which was merged
+with Sun Pharmaceutical Industries Ltd in March 2015).
+In addition, the Department of Justice of the USA ('US
+DOJ'), United States Attorney's Office for the District of
+New Jersey had also issued an administrative subpoena
+dated March 13, 2014 seeking information. The Company
+is continuing to fully co-operate and provide requisite
+information to the US DOJ.
+6 In December 2015, the US-FDA issued a warning
+letter to the manufacturing facility at Halol. Post the
+November 2016 inspection, the US-FDA had re-inspected
+Halol facility and cleared the Halol site from the warning
+letter in June 2018. Since then, the US-FDA has started
+approval of products filed from Halol facility.
+7 In September 2013, the US-FDA had put the Mohali
+facility under import alert and was also subjected to
+certain provisions of the consent decree of permanent
+injunction entered in January 2012 by erstwhile
+Ranbaxy Laboratories Ltd (which was merged with
+Sun Pharmaceutical Industries Ltd in March 2015).
+In March 2017, the US-FDA lifted the import alert
+and indicated that the facility was in compliance with
+the requirements of cGMP provisions mentioned in
+the consent decree. The Mohali facility continues to
+demonstrate sustainable cGMP compliance as required
+by the consent decree. The Company continues
+to manufacture and distribute products to the U.S
+from this facility.
+8 In accordance with Ind AS 108 "Operating Segments",
+segment information has been given in the consolidated
+Ind AS financial statements, and therefore, no separate
+disclosure on segment information is given in these
+financial statements.
+9
+Notes to the Standalone Financial Statements
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+for the year ended March 31, 2019
+PHARMA
+13 Expenditure related to Corporate Social Responsibility as
+per Section 135 of the Companies Act, 2013 read with
+Schedule VII thereof 39.4 Million (March 31, 2018:
+* 27.0 Million).
+12 The Company vide its press release dated January 22,
+2019, had announced the transition of India domestic
+formulations distribution business from Aditya Medisales
+Limited (AML), to a wholly owned subsidiary of Sun
+Pharma Laboratories Limited. Accordingly, a new wholly
+owned subsidiary, Sun Pharma Distributors Limited
+(SPDL), was incorporated on March 19, 2019. The
+phased transition to SPDL will be completed post receipt
+of all requisite regulatory approvals. During the quarter
+ended March 31, 2019, the Company pursuant to this
+decision has taken over its unsold inventory amounting
+to 3,380.6 Million from AML. The above-mentioned
+transition and change in distribution arrangement has
+led to one-time reduction in sales and consequent
+reduction in profit for the year ended on March 31,
+2019. Pending receipt of regulatory approvals by SPDL in
+different jurisdictions for sale of pharmaceutical products,
+AML would act as an agent for the India domestic
+formulation business.
+currency (i.e.) till the date of order has been credited or
+debited to foreign currency translation reserve.
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+Accordingly all the assets, liabilities, and other reserves
+of the specified business as on April 01, 2017 were
+transferred to the Company as per the Scheme.
+As prescribed by the Scheme no consideration was paid
+as the transferor is a wholly owned subsidiary of the
+Company. Accordingly, the resultant difference between
+the book value of assets and liabilities taken-over as on
+the appointed date amounting to 17,450.8 Million is
+credited to capital reserve account. Also, any gain or
+loss on translation of assets and liabilities to functional
+Consequent to the amalgamation prescribed by the
+Scheme, all the assets and liabilities of the specified
+business were transferred to and vested in the Company
+with effect from April 01, 2017 ("the Appointed Date").
+The amalgamation was accounted under the "pooling of
+interest" method prescribed under Ind AS 103 - Business
+Combinations, as prescribed by the Scheme.
+11 The Scheme of Arrangement between Sun Pharma
+Global FZE ("the Transferor"), and the Company ("the
+Scheme"), inter-alia envisaged merger of unbranded
+generic pharmaceutical undertaking of the transferor
+(Specified business) into the Company. The scheme was
+approved by Hon'ble National Company Law Tribunal,
+Ahmedabad Bench on October 31, 2018 and became
+effective on December 01, 2018 upon completion of all
+the formalities.
+Accordingly, all the assets, liabilities and other reserves of
+transferor companies were aggregated with those of the
+Company at their respective book values. As prescribed
+by the Scheme no consideration was paid as the
+transferor Companies were wholly owned subsidiaries
+of the Company. Accordingly, the resultant difference
+amounting to 535.6 Million was credited to capital
+reserve account.
+The amalgamation was accounted under the "pooling of
+interest" method prescribed under Ind AS 103 - Business
+Combinations, as prescribed by the Scheme.
+SUN
+PI Real Estate Ventures, LLC
+ANNEXURE "A"
+Sun Pharma ANZ Pty Ltd (formerly known as Ranbaxy Australia Pty Ltd)
+Ranbaxy Farmaceutica Ltda.
+Ocular Technologies SARL (Refer Footnote 11)
+Sun Pharmaceutical Medicare Limited
+Insite Vision Ltd. (Refer Footnote 4)
+Insite Vision Incorporated
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+Ranbaxy Morocco LLC)
+Sun Pharmaceuticals Morocco LLC (formerly known as
+Ranbaxy Signature LLC
+Ranbaxy Laboratories, Inc. (Refer Footnote 10)
+Ohm Laboratories, Inc.
+Ranbaxy (Thailand) Company Limited
+Ranbaxy Pharmaceuticals, Inc. (Refer Footnote 10)
+Ranbaxy Inc.
+Ranbaxy Europe Limited (Refer Footnote 3)
+Ranbaxy Holdings (U.K.) Limited
+JSC Biosintez
+Ranbaxy (U.K.) Limited
+Sun Pharmaceuticals Holdings USA, Inc.
+Annual Report 2018-19
+Taro International Ltd.
+Taro Pharmaceuticals Ireland Limited (Refer Footnote 3)
+Taro Pharmaceuticals Europe B.V.
+Taro Pharmaceuticals North America, Inc.
+Taro Pharmaceuticals U.S.A., Inc.
+Taro Pharmaceuticals Inc. (Refer Footnote 9)
+Taro Pharmaceutical Industries Ltd. (TARO)
+(Refer Footnote 7)
+Names of related parties and description of relationships
+IND AS-24 - "RELATED PARTY DISCLOSURES”
+ANNEXURE "A"
+PHARMA
+SUN
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+152 Sun Pharmaceutical Industries Ltd.
+Zenotech Laboratories Nigeria Limited (Refer Footnote 2)
+Zenotech Inc
+Be-Tabs Investments (Pty) Ltd. (Refer Footnote 3)
+Sonke Pharmaceuticals Proprietary Limited
+Laboratorios Ranbaxy, S.L.U.
+Ranbaxy Pharmaceutical (Pty) Ltd.
+Sun Laboratories FZE
+AO Ranbaxy (formerly known as ZAO Ranbaxy)
+Terapia SA
+Ranbaxy Nigeria Limited
+Ranbaxy (Malaysia) Sdn. Bhd.
+Solrex Pharmaceuticals Company) (Refer Footnote 5)
+Sun Pharma Medisales Private Limited (Formerly known as Ranbaxy (Poland) Sp. Z o.o.
+Sun Pharmaceutical Industries S.A.C. (formerly known as Ranbaxy-
+PRP (Peru) S.A.C.)
+Ranbaxy Italia S.P.A.
+Ranbaxy Ireland Limited
+Ranbaxy GmbH (Refer Footnote 8)
+Basics GmbH (Refer Footnote 8)
+Office Pharmaceutique Industriel Et Hospitalier
+Sun Pharma Egypt Limited LLC (Formerly Known as Ranbaxy Egypt Ltd)
+Rexcel Egypt LLC
+Pharmaceuticals Canada Inc.)
+Sun Pharma Canada Inc. (Formerly known as Ranbaxy
+Sun Pharma (Netherlands) B.V. (Formerly known as Ranbaxy Ranbaxy South Africa (Pty) Ltd.
+(Netherlands) B.V.)
+Foundation for Disease Elimination and Control of India
+Zenotech Laboratories Limited (Refer Footnote 6)
+Chattem Chemicals Inc.
+The Taro Development Corporation
+Alkaloida Chemical Company Zrt.
+Morley & Company, Inc.
+Sun Pharma Healthcare FZE
+Sun Pharma Japan Ltd.
+Caraco Pharmaceuticals Private Limited
+Sun Global Development FZE
+Sun Pharmaceuticals Korea Ltd.
+Sun Pharma Philippines, Inc.
+13,089.2
+Sun Global Canada Pty. Ltd.
+Sun Pharma Global FZE
+Sun Pharmaceuticals France
+Sun Pharmaceuticals Germany GmbH
+Sun Pharmaceuticals Italia S.R.L. (Refer Footnote 3)
+Sun Pharmaceutical Industries (Europe) B.V.
+Sun Pharmaceuticals UK Limited (Refer Footnote 3)
+Sun Pharmaceutical Industries (Australia) Pty Limited
+Aditya Acquisition Company Ltd.
+10 The Board of Directors of the Company at their meeting
+held on November 10, 2016 and the shareholders and
+unsecured creditors of the Company at their respective
+meetings held on June 20, 2017 approved the proposed
+scheme of arrangement u/s 230 to 232 of the Companies
+Act, 2013 for amalgamation of Sun Pharma Medisales
+Private Limited, Ranbaxy Drugs Limited, Gufic Pharma
+Limited and Vidyut Investments Limited into the
+Company with effect from April 01, 2017, the appointed
+date. On completion of all the formalities of the merger
+of the above companies with the Company, the said
+merger became effective September 08, 2017.
+Consequent to the amalgamation prescribed by the
+Scheme, all the assets and liabilities of transferor
+companies were transferred to and vested in the
+Company with effect from April 01, 2017 ("the
+Appointed Date")
+Sun Pharmaceuticals (SA) (Pty) Ltd
+10,758.3
+13,080.9
+10,693.4
+Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term
+employee benefits recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee benefits are lump sum
+amounts provided on the basis of actuarial valuation, the same is not included above and there is no share-based payments to key managerial
+personnel of company.
+0.1
+212.9
+211.1
+300.4
+213.0
+511.5
+3.5
+147.3
+2,130.0
+150.8
+2,130.0
+14,892.1
+30,126.9
+14,892.1
+Annual Report 2018-19
+30,126.9
+156 Sun Pharmaceutical Industries Ltd.
+To the Members of Sun Pharmaceutical Industries Limited
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+How our audit addressed the key audit matter
+The results of audit procedures performed by us and by
+other auditors of components not audited by us, as reported
+by them in their audit reports furnished to us, including
+those procedures performed to address the matters below,
+provide the basis for our audit opinion on the accompanying
+consolidated Ind AS financial statements.
+Key audit matters are those matters that, in our professional
+judgment, were of most significance in our audit of the
+consolidated Ind AS financial statements for the financial year
+ended March 31, 2019. These matters were addressed in
+the context of our audit of the consolidated Ind AS financial
+statements as a whole and in forming our opinion thereon
+and we do not provide a separate opinion on these matters.
+For each key audit matter below, our description of how our
+audit addressed the matter is provided in that context.
+We have determined the matters described below to be
+the key audit matters to be communicated in our report.
+We have fulfilled the responsibilities described in the
+'Auditor's responsibilities for the audit of the consolidated
+Ind AS financial statements' section of our report, including
+in relation to these matters. Accordingly, our audit included
+the performance of procedures designed to respond to our
+assessment of the risks of material misstatement of the
+consolidated Ind AS financial statements. The results of
+our audit procedures, including the procedures performed
+to address the matters below, provide the basis for our
+audit opinion on the accompanying consolidated Ind AS
+financial statements.
+KEY AUDIT MATTERS
+Accountants of India together with the ethical requirements
+that are relevant to our audit of the financial statements
+under the provisions of the Act and the Rules thereunder,
+and we have fulfilled our other ethical responsibilities in
+accordance with these requirements and the Code of Ethics.
+We believe that the audit evidence we have obtained is
+sufficient and appropriate to provide a basis for our audit
+opinion on the consolidated Ind AS financial statements.
+Key audit matter
+We conducted our audit of the consolidated Ind AS
+financial statements in accordance with the Standards on
+Auditing (SAs), as specified under section 143(10) of the
+Act. Our responsibilities under those Standards are further
+described in the 'Auditor's Responsibilities for the Audit of
+the Consolidated Ind AS Financial Statements' section of
+our report. We are independent of the Group in accordance
+with the 'Code of Ethics' issued by the Institute of Chartered
+BASIS FOR OPINION
+In our opinion and to the best of our information and
+according to the explanations given to us, the aforesaid
+consolidated Ind AS financial statements give the information
+required by the Companies Act, 2013, as amended (“the Act”)
+in the manner so required and give a true and fair view in
+conformity with the accounting principles generally accepted
+in India, of the consolidated state of affairs of the Group,
+its associates and joint ventures as at March 31, 2019, their
+consolidated profit including other comprehensive income,
+their consolidated cash flows and the consolidated statement
+of changes in equity for the year ended on that date.
+We have audited the accompanying consolidated Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited (hereinafter referred to as "the Holding Company"),
+its subsidiaries (the Holding Company and its subsidiaries
+together referred to as "the Group”) its associates and joint
+ventures comprising of the consolidated Balance sheet as at
+March 31, 2019, the consolidated Statement of Profit and
+Loss, including Statement of other comprehensive income,
+the consolidated Cash Flow Statement and the consolidated
+Statement of Changes in Equity for the year then ended,
+and notes to the consolidated Ind AS financial statements,
+including a summary of significant accounting policies and
+other explanatory information (hereinafter referred to as "the
+consolidated Ind AS financial statements”).
+OPINION
+REPORT ON THE AUDIT OF THE CONSOLIDATED
+IND AS FINANCIAL STATEMENTS
+PHARMA
+SUN
+INDEPENDENT AUDITOR'S REPORT
+Litigations (as described in note 40 of the consolidated Ind AS financial statements)
+The Group is involved in various legal proceedings including
+product liability, contracts, employment claims, anti-trust and
+other regulatory matters relating to conduct of its business.
+The Group assesses the need to make provision or to disclose
+a contingent liability on a case-to-case basis considering the
+underlying facts of each litigation.
+62.5
+62.5
+1,980.4
+47,083.8
+49,277.3
+50,577.9
+51,257.7
+* in Million
+As at
+March 31, 2018
+March 31, 2019
+As at
+155
+Others
+Associates
+Subsidiaries
+Advance (includes capital and supply of goods/services)
+Others
+Subsidiaries
+3,494.1
+62.5
+5,411.3
+5,322.8
+62.5
+53.3
+2,779.7
+53.3
+2,779.7
+6,049.7
+6,049.7
+584.8
+87.3
+0.8
+0.9
+2.7
+0.3
+0.0
+5,183.6
+5,771.9
+The eventual outcome of the litigations is uncertain and
+estimation at balance sheet date involves extensive judgement of
+management including input from legal counsel due to complexity
+of each litigation. Adverse outcomes could significantly impact the
+Group's reported profit and balance sheet position.
+Evaluated the design and tested the operating effectiveness
+of controls in respect of the identification, evaluation of
+litigations, the recording / re-assessment of the related
+liabilities, provisions and disclosures.
+Obtained a list of litigations from the Group's in-house legal
+counsel; identified material litigations from the aforementioned
+list and performed inquiries with the said counsel; obtained and
+read the underlying documents to assess the assumptions used
+by management in arriving at the conclusions.
+•
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+We focused on identification and disclosure of related
+parties in accordance with relevant accounting standards as a
+key audit matter.
+Identification and disclosure of related parties (as described in note
+The Group has related party transactions which include, amongst
+others, sale and purchase of goods/services to its associates, joint
+ventures and other related parties and lending and borrowing to its
+associates and joint ventures.
+We focused on this area as the adoption of Ind AS-115 was a
+significant event that had a significant effect on the consolidated
+Ind AS financial statements of the Group requiring significant
+auditor attention.
+The Group adopted Ind AS 115 Revenue from Contracts with
+Customers with effect from April 01, 2018.
+Performed count of the physical inventory taken back from
+Application of Ind AS 115 (as described in note 54 of the consolidated Ind AS financial statements)
+Evaluated disclosures of the tax positions, tax loss carry
+forwards and tax litigations in the consolidated Ind AS
+financial statements.
+on unabsorbed depreciation/carry forward losses.
+Tested management's assumptions including forecasts and
+sensitivity analysis in respect of recoverability of deferred taxes
+•
+How our audit addressed the key audit matter
+Key audit matter
+PHARMA
+•
+SUN
+Evaluated the design and tested the operating effectiveness of
+management's controls in assessing the change in accounting
+policies on account of implementation of new standards.
+Engaged Ind AS specialists, to evaluate management's
+assessment of the impact of Ind AS 115, including disclosures.
+Our audit procedures amongst others included the following:
+We focused on this area considering that this was a significant
+event during the year and being a transaction with a related party.
+The Group has announced transition of the Indian Domestic
+Formulation distribution business from Aditya Medisales Limited
+("AML"), a related party, to a wholly owned subsidiary of the Group.
+As part of the transition, the Group has taken back its unsold
+inventory lying with AML as on March 31, 2019.
+Transition of business from Aditya Medisales Limited (as described in note 64 of the consolidated Ind AS financial statements)
+Evaluated the disclosures in the consolidated Ind AS financial
+statements for compliance with Ind AS 24.
+Tested material creditors/debtors, loan outstanding/loans taken
+to evaluate existence of any related party relationships; tested
+transactions based on declarations of related party transactions
+given to the Board of Directors and Audit Committee.
+Read minutes of the meetings of the Board of Directors and
+Audit Committee.
+Obtained a list of related parties from the Group's management
+and traced the related parties to declarations given by
+directors, where applicable, and to note 75 of the consolidated
+Ind AS financial statements.
+Evaluated the design and tested the operating effectiveness
+of controls over identification and disclosure of related
+party transactions.
+.
+•
+•
+•
+75 of the consolidated Ind AS financial statements)
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+Evaluated the adequacy of financial statement disclosures,
+including disclosures of key assumptions and judgements.
+Assessed whether the adjustments to the respective account
+balances have been made in accordance with the requirements
+set out in the new standard.
+158 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+Our specialists considered legal precedence and other rulings in
+evaluating management's position on these tax litigations.
+Evaluated the key assumptions used by the Group by
+comparing it with prior years.
+Obtained management's computations for accruals under
+respective contractual arrangements.
+Assessed and tested the design and operating effectiveness of
+the Group's controls over the completeness, recognition and
+measurement of accrual.
+•
+described in note 54 of the consolidated Ind AS financial statements)
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+Read the disclosures related to provisions and contingent
+liabilities in the consolidated Ind AS financial statements to
+assess consistency with underlying documents.
+Read legal confirmations from Group's external legal counsels
+in respect of material litigations and considered that in
+our assessment.
+How our audit addressed the key audit matter
+These deductions involve significant judgement and estimation, in
+particular the accruals associated with the revenue transactions
+pertaining to the generics business of United States and is hence
+considered as a key audit matter.
+Rebates, discounts, chargebacks, returns and other allowances (as
+The Group generates revenue across various geographies through
+commercial arrangements prevalent in those geographies. These
+commercial arrangements involve rebates, discounts, chargebacks,
+right to return and other allowances, which are deducted from the
+gross revenue to arrive at Revenue from Operations.
+Considering the judgement involved in determining the need to
+make a provision or disclose as contingent liability, the matter is
+considered a key audit matter.
+Key audit matter
+157
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+Analysed the historical pattern of chargebacks, the inventory
+information and performed retrospective reviews in order to
+validate management's assumption.
+• Compared the assumptions in respect of rebates, discounts,
+allowances and returns to current payment trends.
+Goodwill and other intangible assets (as described in note 3b and 48 of the consolidated Ind AS financial statements)
+The Group has significant intangible assets, comprising acquired
+trademarks, product intangibles and goodwill. The Group conducts
+an annual impairment testing of goodwill and intangible assets
+using discounted cash flow method.
+Engaged tax specialists, to evaluate management's assessment
+of the outcome of these litigations.
+Evaluated the design and tested the operating effectiveness of
+controls in respect of the identification and evaluation of tax
+litigations/deferred tax and the recording and re-assessment of
+the related liabilities/assets and provisions and disclosures.
+•
+•
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+Also, recognition of deferred tax assets is a key audit matter as
+the assessment of its recoverability within the allowed time frame
+involves significant estimate of the financial projections, availability
+of sufficient taxable income in the future and also involves
+significant judgements in the interpretation of tax regulations and
+tax positions adopted by the Group.
+The assessment of outcome of litigations involves significant
+judgement which is dependent on the facts of each case,
+supporting judicial precedents and legal opinions of external and
+internal legal counsels.
+Advance from customers
+The Group has significant tax litigations for which the Group
+assesses the outcome on a case-to-case basis considering the
+underlying facts of each tax litigation. Adverse outcomes could
+significantly impact the Group's reported profit and balance
+sheet position.
+Obtained and evaluated management's sensitivity analysis
+to ascertain the impact of changes in key assumptions and
+performed our own independent sensitivity calculations
+to quantify the downside impact to determination of
+recoverable amount.
+Obtained the Group's computation of recoverable amount
+and tested the reasonableness of key assumptions, including
+profit and cash flow forecast, terminal values, potential product
+obsolescence and the discount rates.
+Evaluated the design and tested the operating effectiveness
+of management's controls in assessing the carrying value of
+goodwill and intangible assets.
+•
+•
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+Significant judgements are used to estimate the recoverable
+amount of these intangible assets and goodwill. The determination
+of recoverable amounts involves use of several key assumptions,
+including estimates of future sales volume, and prices, operating
+costs, terminal value growth rates and the weighted average
+cost of capital (discount rate) and is hence considered as a
+key audit matter.
+Tax litigations and recognition of deferred tax assets (as described in note 40 and 51 of the consolidated Ind AS financial statements)
+•
+Subsidiaries
+Subsidiaries
+for the year ended March 31, 2019
+Notes to the Standalone Financial Statements
+154 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+80.0
+14.5
+80.0
+14.5
+383.7
+383.7
+22,655.1
+21,390.6
+22,655.1
+21,390.6
+28,122.1
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+15,340.9
+(II) Detail of related party transaction during the year ended March 31, 2019:
+Dividend income on equity sha
+Subsidiaries
+Provision in respect of losses of a subsidiary
+Subsidiaries
+Rent expense
+Others
+Subsidiaries
+Lease rental and hire charges
+Subsidiaries
+Interest expense
+Others
+Associates
+Subsidiaries
+Interest income
+Subsidiaries
+shares
+Type of Transaction
+Provision for diminution in the value of Investment (net)
+28,122.1
+12,384.5
+16.8
+6.1
+58.9
+56.7
+178.2
+104.7
+0.1
+590.9
+2,839.4
+769.2
+2,944.1
+59.2
+4.4
+3.9
+5.7
+50.6
+15,340.9
+42.1
+855.0
+8,580.4
+12,384.5
+8,580.4
+2.5
+2.5
+2.5
+2.5
+183.3
+183.3
+512.0
+303.3
+512.0
+303.3
+2,934.3
+2,934.3
+855.0
+Subsidiaries
+Provision for doubtful debt
+Subsidiaries
+Specialty in progress
+(*) Remuneration to Key Managerial Personnel includes the refund received from Key Managerial Personnel in respect of excess remuneration paid
+for financial year 2014-15, 2015-16 and 2016-17 in year ended March 31, 2018.
+20.1
+25.1
+(23.0)
+14.6
+(2.9)
+39.7
+27.8
+27.1
+27.8
+27.1
+(562.2)
+(562.2)
+254.3
+FINANCIAL STATEMENTS > Standalone
+366.9
+Notes to the Standalone Financial Statements
+Balance outstanding as at the end of the year
+Deposit given
+Subsidiaries
+Loan given
+Subsidiaries
+Loan taken
+Others
+Relatives of key managerial personnel
+Key managerial personnel
+Associates
+Joint Venture (March 31, 2019: 48,558)
+Subsidiaries
+Payable
+Others
+Subsidiaries
+Receivables
+for the year ended March 31, 2019
+254.3
+366.9
+1.0
+8,074.8
+8,894.8
+8,074.8
+Year ended
+March 31, 2018
+* in Million
+8,894.8
+March 31, 2019
+Year ended
+ANNEXURE "A"
+PHARMA
+SUN
+(**) Includes income recognised from profit sharing supply arrangements.
+Relatives of key managerial personnel
+Key managerial personnel (*)
+Remuneration
+613.7
+257.7
+110.0
+5.0
+2.1
+1.0
+2.1
+9.0
+23.3
+17.6
+17.2
+Other liabilities
+26.6
+647.4
+426.4
+647.4
+426.4
+233.6
+503.7
+19.1
+40.5
+Evaluated the design and tested the operating effectiveness of
+the controls over the accounting of this transaction.
+PHARMA
+159
+(274.8)
+150.3
+507.9
+8.6
+1,288.3
+18.2
+(23.2)
+26.8
+1,265.1
+177.1
+1,773.0
+FINANCIAL STATEMENTS > Consolidated
+Consolidated Statement of Profit and Loss
+for the year ended March 31, 2019
+167
+(80.7)
+Year ended
+782.7
+Specialty in progress
+(7.8)
+(XII) Profit for the year before non-controlling interests (IX+X+XI)
+32,078.6
+25,425.0
+(XIII) Non-controlling interests
+72
+(XIV) Profit for the year attributable to owners of the Company (XII-XIII)
+5,424.4
+26,654.2
+4,468.0
+20,957.0
+(XV) Other comprehensive income
+(A) Items that will not be reclassified to profit or loss
+Total (A)
+(a) Gain/(loss) on re-measurements of the defined benefit plans
+Income tax on above
+(b) Gain/(loss) on equity instruments through other comprehensive income
+Income tax on above
+231.0
+(7.5)
+* in Million
+Year ended
+(B) Items that may be reclassified to profit or loss
+4,025.7
+foreign operations
+Income tax on above
+(759.5)
+19,213.0
+4,025.7
+(d) Exchange differences on translation of net investment in foreign operations
+Total (B)
+(3,049.8)
+(400.9)
+16,622.8
+3,459.5
+(XV) Total other comprehensive income (A + B)
+16,799.9
+5,232.5
+(XVI) Total comprehensive income for the year (XII+XV)
+19,972.5
+Particulars
+(c) Exchange differences in translating the financial statements of
+358.4
+(a) Gain/(loss) on debt instruments through other comprehensive income
+Income tax on above
+Notes
+March 31, 2019
+March 31, 2018
+105.2
+(98.3)
+(4.0)
+8.7
+101.2
+(89.6)
+(b) Effective portion of gain / (loss) on designated portion of hedging instruments
+in a cash flow hedge
+539.0
+(75.7)
+Income tax on above
+(180.6)
+(75.7)
+48,878.5
+(XI) Share of profit/(loss) of joint ventures (net of tax)
+(7.1)
+27,313.8
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+34
+(4,331.1)
+2,307.0
+Employee benefits expense
+Finance costs
+Depreciation and amortisation expense
+Other expenses
+Total expenses (IV)
+(V) Profit before exceptional items and tax (III-IV)
+(VI) Exceptional items
+(VII) Profit before tax (V-VI)
+(VIII) Tax expense
+Current tax
+25,193.8
+Deferred tax
+44,626.0
+33
+(III) Total income (I+II)
+(IV) Expenses
+Cost of materials consumed
+Purchases of stock-in-trade
+Notes
+Year ended
+March 31, 2019
+31
+290,659.1
+32
+* in Million
+Year ended
+March 31, 2018
+264,894.6
+10,254.9
+300,914.0
+8,387.6
+273,282.2
+57,827.0
+(246.6)
+a) Deferred tax credit
+59,670.9
+8,039.6
+6,628.0
+(2,030.8)
+(62.1)
+b) Deferred tax charge/(credit) - exceptional
+74
+2,544.5
+Total tax expense (VIII)
+50
+6,008.8
+9,110.4
+(IX) Profit for the year before share of profit/(loss) of associates and joint ventures (VII-VIII)
+32,093.2
+25,679.4
+(X) Share of profit/(loss) of associates (net of tax)
+34,789.8
+35
+38,102.0
+12,143.8
+53,670.5
+36
+5,552.5
+5,175.7
+3 (a & b)
+17,532.5
+14,998.4
+37
+89,222.6
+80,896.0
+250,668.2
+228,987.4
+50,245.8
+44,294.8
+62
+9,505.0
+(II) Other income
+30,657.5
+- Owners of the Company
+(0.0)
+9.1
+(833.4)
+168 Sun Pharmaceutical Industries Ltd.
+* 507.7
+(90.5)
+1,308.9
+(75.7)
+1,650.4
+(42.7)
+1,607.7
+21,464.7
+(90.5)
+1,308.9
+3,104.4
+@ 0.0
+(75.7)
+Transfer from surplus in consolidated
+statement of profit and loss as per the
+local law of an overseas subsidiary
+Transfer on exercise of share options
+Balance as at March 31, 2018
+subsidiaries company
+3,624.8
+Balance as at March 31, 2017
+Profit for the year
+Exchange difference arising on translation
+of foreign operations/net investment in
+foreign operations
+Other comprehensive income for the
+year, net of tax
+Total comprehensive income for the year
+Payment of dividend
+Dividend distribution tax
+Recognition of share-based
+payments to employees
+Issue of equity shares
+Transfer from debenture
+redemption reserve
+Buy-back of equity shares by overseas
+Additional non-controlling interest arising
+on the acquisition of Zenotech
+25,425.0
+(7,977.4)
+4,945.7
+(152.8)
+(25.4)
+2,399.3
+507.5
+11,929.1
+1,250.0
+43.8
+7.5
+3.6
+35,578.0 319,777.0
+(93.9)
+1,648.6 10,120.1
+(29.5)
+383,141.1
+38,841.6
+421,982.7
+25.4
+25,711.8
+(7,977.4)
+726.5
+(6,754.5)
+30,657.5
+(8,130.2)
+(1,624.0)
+(1,624.0)
+(1.0)
+(1.0)
+(1,624.0)
+(1.0)
+9.1
+9.1
+833.4
+(2,168.1)
+2.5
+(2.5)
+(2,168.1)
+(4,586.4)
+726.5
+Other comprehensive income for the year attributable to:
+407,099.3
+369,190.7
+20,957.0
+3,104.4
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Mumbai, May 28, 2019
+C. S. MURALIDHARAN
+Chief Financial Officer
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+SUDHIR V. VALIA
+Wholetime Director
+SUNIL R. AJMERA
+Company Secretary
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+Annual Report 2018-19
+Specialty in progress
+Consolidated Statement of Changes in Equity
+For S RBC & CO LLP
+for the year ended March 31, 2019
+As per our report of even date
+8.7
+8.7
+15,399.9
+4,754.8
+Total comprehensive income for the year attributable to:
+- Non-controlling interests
+- Owners of the Company
+- Non-controlling interests
+Earnings per equity share (face value per equity share - ₹ 1)
+Basic (in)
+Diluted (in)
+1,400.0
+477.7
+42,054.1
+6,824.4
+25,711.8
+4,945.7
+52
+11.1
+11.1
+The accompanying notes are an integral part of the consolidated financial statements
+37,908.6
+4,468.0
+520.4
+Particulars
+Reserves and surplus
+to owners
+of Parent
+Company
+Non-
+controlling
+interests
+Total
+507.5 11,894.6
+2,083.4
+26.4
+43.8
+7.5
+1.1
+35,578.0 309,250.9
+20,957.0
+(3.4)
+339.7
+7,015.7
+46.2
+3,104.4
+Effective
+portion of
+cash flow
+hedges
+in Million
+Foreign
+currency
+translation
+reserve
+reserve
+Other comprehensive income (OCI)
+Attributable
+Equity
+share
+2,399.3
+Share
+application
+capital money
+pending
+allotment
+# 0.0
+Capital Securities
+reserve premium
+Debenture
+redemption
+reserve
+Share
+option
+outstanding
+account
+Debt
+Capital
+Amalgamation redemption
+reserve
+Legal General Retained
+reserve earnings
+reserve
+Equity
+instrument instrument
+through through
+OCI
+OCI
+(I) Revenue from operations
+Particulars
+PHARMA
+PHARMA
+Particulars
+ASSETS
+(1) Non-current assets
+(a) Property, plant and equipment
+(b) Capital work-in-progress
+(c) Goodwill (Net)
+* in Million
+Notes
+As at
+March 31, 2019
+As at
+March 31, 2018
+За
+100,274.2
+91,590.3
+9,107.9
+SUN
+14,344.7
+as at March 31, 2019
+164 Sun Pharmaceutical Industries Ltd.
+INHERENT LIMITATIONS OF INTERNAL FINANCIAL
+CONTROLS OVER FINANCIAL REPORTING WITH
+REFERENCE TO THESE CONSOLIDATED IND AS
+FINANCIAL STATEMENTS
+Because of the inherent limitations of internal financial
+controls over financial reporting with reference to these
+consolidated Ind AS financial statements, including the
+possibility of collusion or improper management override
+of controls, material misstatements due to error or fraud
+may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial
+reporting with reference to these consolidated Ind AS
+financial statements to future periods are subject to the risk
+that the internal financial control over financial reporting
+with reference to these consolidated Ind AS financial
+statements may become inadequate because of changes in
+conditions, or that the degree of compliance with the policies
+or procedures may deteriorate.
+OPINION
+In our opinion, the Holding Company and its subsidiary
+companies, which are companies incorporated in India,
+have, maintained in all material respects, adequate internal
+financial controls over financial reporting with reference
+to these consolidated Ind AS financial statements and
+such internal financial controls over financial reporting
+with reference to these consolidated Ind AS financial
+statements were operating effectively as at March 31,
+2019, based on the internal control over financial reporting
+criteria established by the Holding Company considering
+the essential components of internal control stated in the
+Guidance Note on Audit of Internal Financial Controls Over
+Financial Reporting issued by the Institute of Chartered
+Accountants of India.
+OTHER MATTERS
+Our report under Section 143(3)(i) of the Act on the
+adequacy and operating effectiveness of the internal
+financial controls over financial reporting with reference
+to these consolidated Ind AS financial statements of the
+Holding Company, insofar as it relates to 1 subsidiary
+company, which is company incorporated in India, is based
+on the corresponding reports of the auditors of such
+subsidiary incorporated in India.
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Place of Signature: Mumbai
+Date: May 28, 2019
+Annual Report 2018-19
+Consolidated Balance Sheet
+163
+48
+56,067.1
+(j) Income tax assets (Net)
+(k) Other non-current assets
+Total non-current assets
+(2) Current assets
+(a) Inventories
+(b) Financial assets
+(i)
+165842
+37,092.7
+27,521.1
+170.4
+22,424.7
+787.7
+1,049.2
+25,548.7
+(i) Deferred tax assets (Net)
+59,557.7
+(iii) Other financial assets
+(i) Investments
+(d) Other intangible assets
+3b
+58,533.5
+40,869.1
+(e) Intangible assets under development
+5,003.6
+10,306.9
+(f) Investment in associates
+(g) Investment in joint ventures
+45
+2,163.4
+2,748.6
+262.0
+252.8
+(h) Financial assets
+(ii) Loans
+24,073.3
+FINANCIAL STATEMENTS > Consolidated
+A company's internal financial control over financial reporting
+with reference to these consolidated Ind AS financial
+statements is a process designed to provide reasonable
+assurance regarding the reliability of financial reporting and
+the preparation of financial statements for external purposes
+in accordance with generally accepted accounting principles.
+A company's internal financial control over financial reporting
+with reference to these consolidated financial statements
+includes those policies and procedures that (1) pertain to the
+maintenance of records that, in reasonable detail, accurately
+and fairly reflect the transactions and dispositions of the
+assets of the company; (2) provide reasonable assurance that
+transactions are recorded as necessary to permit preparation
+of financial statements in accordance with generally accepted
+accounting principles, and that receipts and expenditures
+of the company are being made only in accordance with
+authorisations of management and directors of the company;
+and (3) provide reasonable assurance regarding prevention
+or timely detection of unauthorised acquisition, use, or
+disposition of the company's assets that could have a
+material effect on the financial statements.
+Annual Report 2018-19
+160 Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+•
+•
+based on the audit evidence obtained up to the date of
+our auditor's report. However, future events or conditions
+may cause the Group and its associates and joint ventures
+to cease to continue as a going concern.
+Evaluate the overall presentation, structure and content
+of the consolidated Ind AS financial statements,
+including the disclosures, and whether the consolidated
+Ind AS financial statements represent the underlying
+transactions and events in a manner that achieves
+fair presentation.
+Obtain sufficient appropriate audit evidence regarding
+the financial information of the entities or business
+activities within the Group and its associates and joint
+ventures of which we are the independent auditors
+and whose financial information we have audited, to
+express an opinion on the consolidated Ind AS financial
+statements. We are responsible for the direction,
+supervision and performance of the audit of the
+financial statements of such entities included in the
+consolidated Ind AS financial statements of which we
+are the independent auditors. For the other entities
+included in the consolidated financial statements,
+which have been audited by other auditors, such other
+auditors remain responsible for the direction, supervision
+and performance of the audits carried out by them.
+We remain solely responsible for our audit opinion.
+We communicate with those charged with governance of
+the Holding Company and such other entities included in the
+consolidated Ind AS financial statements of which we are the
+independent auditors regarding, among other matters, the
+planned scope and timing of the audit and significant audit
+findings, including any significant deficiencies in internal
+control that we identify during our audit.
+We also provide those charged with governance with a
+statement that we have complied with relevant ethical
+requirements regarding independence and to communicate
+with them all relationships and other matters that may
+reasonably be thought to bear on our independence and
+where applicable, related safeguards.
+From the matters communicated with those charged with
+governance, we determine those matters that were of most
+significance in the audit of the consolidated Ind AS financial
+statements for the financial year ended March 31, 2019
+and are therefore the key audit matters. We describe these
+matters in our auditor's report unless law or regulation
+precludes public disclosure about the matter or when, in
+extremely rare circumstances, we determine that a matter
+should not be communicated in our report because the
+adverse consequences of doing so would reasonably
+be expected to outweigh the public interest benefits of
+such communication.
+OTHER MATTER
+(a) We did not audit the financial statements and other
+financial information, in respect of 28 subsidiaries,
+whose Ind AS financial statements, without giving the
+effect to elimination of intra group transactions, include
+total assets of 594,405.9 million as at March 31,
+2019, and total revenues of 211,955.5 million and
+net cash outflows of 28,919.5 million for the year
+ended on that date. These Ind AS financial statement
+and other financial information have been audited
+by other auditors, whose financial statements, other
+financial information and auditor's reports have been
+furnished to us by management. The consolidated Ind
+AS financial statements also include the Group's share of
+net loss of 14.6 million for the year ended March 31,
+2019, as considered in the consolidated Ind AS financial
+statements, in respect of 5 associates and joint ventures,
+whose financial statements, other financial information
+have been audited by other auditors and whose reports
+have been furnished to us by management. Our opinion
+on the consolidated Ind AS financial statements, in so
+far as it relates to the amounts and disclosures included
+in respect of these subsidiaries, joint ventures and
+associates, and our report in terms of sub-sections (3)
+of Section 143 of the Act, in so far as it relates to the
+aforesaid subsidiaries, joint ventures and associates, is
+based solely on the reports of such other auditors.
+Certain of these subsidiaries are located outside
+India whose financial statements and other financial
+information have been prepared in accordance with
+accounting principles generally accepted in their
+respective countries and which have been audited
+by other auditors under generally accepted auditing
+standards applicable in their respective countries.
+The Company's management has converted the financial
+statements of such subsidiaries located outside India
+from accounting principles generally accepted in their
+respective countries to accounting principles generally
+accepted in India. We have audited these conversion
+adjustments made by the Company's management.
+Our opinion in so far as it relates to the balances and
+affairs of such subsidiaries located outside India is based
+on the report of other auditors and the conversion
+adjustments prepared by the management of the
+Company and audited by us.
+(b) The accompanying consolidated Ind AS financial
+statements include unaudited financial statements
+and other unaudited financial information in respect
+of 30 subsidiaries, whose financial statements and
+other financial information, without giving effect to
+elimination of intra group transactions, reflect total
+assets of 226,010.9 million as at March 31, 2019,
+and total revenues of ₹5,846.8 million and net cash
+outflows of 322.2 million for the year ended on that
+date. These unaudited financial statements and other
+unaudited financial information have been furnished to
+us by management. Our opinion, in so far as it relates
+amounts and disclosures included in respect of these
+subsidiaries and our report in terms of sub-sections
+(3) of Section 143 of the Act in so far as it relates
+to the aforesaid subsidiaries is based solely on such
+unaudited financial statement and other unaudited
+financial information. In our opinion and according to the
+information and explanations given to us by management,
+these financial statements and other financial information
+are not material to the Group.
+Conclude on the appropriateness of management's use
+of the going concern basis of accounting and based
+on the audit evidence obtained, whether a material
+uncertainty exists related to events or conditions that
+may cast significant doubt on the ability of the Group
+and its associates and joint ventures to continue as a
+going concern. If we conclude that a material uncertainty
+exists, we are required to draw attention in our auditor's
+report to the related disclosures in the consolidated
+Ind AS financial statements or, if such disclosures are
+inadequate, to modify our opinion. Our conclusions are
+Specialty in progress
+Evaluate the appropriateness of accounting policies used
+and the reasonableness of accounting estimates and
+related disclosures made by management.
+Identify and assess the risks of material misstatement
+of the consolidated Ind AS financial statements,
+whether due to fraud or error, design and perform audit
+procedures responsive to those risks and obtain audit
+evidence that is sufficient and appropriate to provide a
+basis for our opinion. The risk of not detecting a material
+misstatement resulting from fraud is higher than for
+one resulting from error, as fraud may involve collusion,
+forgery, intentional omissions, misrepresentations, or the
+override of internal control.
+Other Information
+The Holding Company's Board of Directors is responsible
+for the other information. The other information comprises
+the information included in the Annual report, but does not
+include the consolidated Ind AS financial statements and our
+auditor's report thereon.
+Our opinion on the consolidated Ind AS financial statements
+does not cover the other information and we do not express
+any form of assurance conclusion thereon.
+In connection with our audit of the consolidated Ind AS
+financial statements, our responsibility is to read the other
+information and in doing so consider whether such other
+information is materially inconsistent with the consolidated
+Ind AS financial statements or our knowledge obtained in
+the audit or otherwise appears to be materially misstated.
+If, based on the work we have performed, we conclude that
+there is a material misstatement of this other information, we
+are required to report that fact. We have nothing to report
+in this regard.
+SUN
+The Holding Company's Board of Directors is responsible for
+the preparation and presentation of these consolidated Ind
+AS financial statements in terms of the requirements of the
+Act that give a true and fair view of the consolidated financial
+position, consolidated financial performance including
+other comprehensive income, consolidated cash flows and
+consolidated statement of changes in equity of the Group
+including its associates and joint ventures in accordance
+with the accounting principles generally accepted in India,
+including the Indian Accounting Standards (Ind AS) specified
+under section 133 of the Act read with the Companies
+(Indian Accounting Standards) Rules, 2015, as amended.
+The respective Board of Directors of the companies included
+in the Group and of its associates and joint ventures are
+responsible for maintenance of adequate accounting records
+in accordance with the provisions of the Act for safeguarding
+of the assets of the Group and of its associates and joint
+ventures and for preventing and detecting frauds and other
+irregularities; selection and application of appropriate
+accounting policies; making judgments and estimates that
+are reasonable and prudent; and the design, implementation
+and maintenance of adequate internal financial controls,
+that were operating effectively for ensuring the accuracy
+and completeness of the accounting records, relevant to the
+preparation and presentation of the consolidated Ind AS
+financial statements that give a true and fair view and are
+free from material misstatement, whether due to fraud or
+error, which have been used for the purpose of preparation
+of the consolidated Ind AS financial statements by the
+Directors of the Holding Company, as aforesaid.
+In preparing the consolidated Ind AS financial statements,
+the respective Board of Directors of the companies included
+in the Group and of its associates and joint ventures are
+responsible for assessing the ability of the Group and of its
+associates and joint ventures to continue as a going concern,
+disclosing, as applicable, matters related to going concern
+and using the going concern basis of accounting unless
+management either intends to liquidate the Group or to
+cease operations, or has no realistic alternative but to do so.
+The respective Board of Directors of the companies included
+in the Group and of its associates and joint venture are also
+responsible for overseeing the financial reporting process of
+the Group and of its associates and joint ventures.
+AUDITOR'S RESPONSIBILITIES FOR THE AUDIT
+OF THE CONSOLIDATED IND AS FINANCIAL
+STATEMENTS
+Our objectives are to obtain reasonable assurance about
+whether the consolidated Ind AS financial statements as
+a whole are free from material misstatement, whether
+due to fraud or error, and to issue an auditor's report that
+includes our opinion. Reasonable assurance is a high level of
+assurance, but is not a guarantee that an audit conducted
+in accordance with SAs will always detect a material
+misstatement when it exists. Misstatements can arise from
+fraud or error and are considered material if, individually
+or in the aggregate, they could reasonably be expected to
+influence the economic decisions of users taken on the basis
+of these consolidated Ind AS financial statements.
+As part of an audit in accordance with SAs, we exercise
+professional judgment and maintain professional skepticism
+throughout the audit. We also:
+•
+•
+•
+Obtain an understanding of internal control relevant to
+the audit in order to design audit procedures that are
+appropriate in the circumstances. Under section 143(3)(i)
+of the Act, we are also responsible for expressing our
+opinion on whether the Holding Company has adequate
+internal financial controls system in place and the
+operating effectiveness of such controls.
+Specialty in progress
+FINANCIAL STATEMENTS > Consolidated
+Our opinion above on the consolidated Ind AS financial
+statements, and our report on Other Legal and Regulatory
+Requirements below, is not modified in respect of the
+above matters with respect to our reliance on the work
+done and the reports of the other auditors and the
+financial statements and other financial information
+certified by management.
+Place of Signature: Mumbai
+Date: May 28, 2019
+Annual Report 2018-19
+162 Sun Pharmaceutical Industries Ltd.
+Annexure 1 to the Independent Auditors Report of even date on the
+Consolidated Ind AS Financial Statements of Sun Pharmaceutical
+Industries Limited
+SUN
+PHARMA
+REPORT ON THE INTERNAL FINANCIAL CONTROLS
+UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
+143 OF THE COMPANIES ACT, 2013 ("THE ACT")
+In conjunction with our audit of the consolidated Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited as of and for the year ended March 31, 2019, we
+have audited the internal financial controls over financial
+reporting of Sun Pharmaceutical Industries Limited
+(hereinafter referred to as the "Holding Company") and its
+subsidiary companies, which are companies incorporated in
+India, as of that date.
+MANAGEMENT'S RESPONSIBILITY FOR INTERNAL
+FINANCIAL CONTROLS
+The respective Board of Directors of the Holding
+Company, its subsidiary companies, which are companies
+incorporated in India, are responsible for establishing and
+maintaining internal financial controls based on the internal
+control over financial reporting criteria established by the
+Holding Company considering the essential components
+of internal control stated in the Guidance Note on Audit
+of Internal Financial Controls Over Financial Reporting
+issued by the Institute of Chartered Accountants of India.
+These responsibilities include the design, implementation
+and maintenance of adequate internal financial controls
+that were operating effectively for ensuring the orderly and
+efficient conduct of its business, including adherence to
+the respective company's policies, the safeguarding of its
+assets, the prevention and detection of frauds and errors, the
+accuracy and completeness of the accounting records, and
+the timely preparation of reliable financial information, as
+required under the Act.
+AUDITOR'S RESPONSIBILITY
+Our responsibility is to express an opinion on the company's
+internal financial controls over financial reporting with
+reference to these consolidated Ind AS financial statements
+based on our audit. We conducted our audit in accordance
+with the Guidance Note on Audit of Internal Financial
+Controls Over Financial Reporting (the "Guidance Note")
+and the Standards on Auditing, both, issued by Institute
+of Chartered Accountants of India, and deemed to be
+prescribed under section 143(10) of the Act, to the
+extent applicable to an audit of internal financial controls.
+Those Standards and the Guidance Note require that we
+comply with ethical requirements and plan and perform
+the audit to obtain reasonable assurance about whether
+adequate internal financial controls over financial reporting
+with reference to these consolidated Ind AS financial
+statements was established and maintained and if such
+controls operated effectively in all material respects.
+Our audit involves performing procedures to obtain audit
+evidence about the adequacy of the internal financial
+controls over financial reporting with reference to these
+consolidated Ind AS financial statements and their operating
+effectiveness. Our audit of internal financial controls over
+financial reporting included obtaining an understanding
+of internal financial controls over financial reporting with
+reference to these consolidated Ind AS financial statements,
+assessing the risk that a material weakness exists, and testing
+and evaluating the design and operating effectiveness of
+internal control based on the assessed risk. The procedures
+selected depend on the auditor's judgement, including the
+assessment of the risks of material misstatement of the
+financial statements, whether due to fraud or error.
+We believe that the audit evidence we have obtained and
+the audit evidence obtained by the other auditors in terms
+of their reports referred to in the Other Matters paragraph
+below, is sufficient and appropriate to provide a basis for our
+audit opinion on the internal financial controls over financial
+reporting with reference to these consolidated Ind AS
+financial statements.
+MEANING OF INTERNAL FINANCIAL CONTROLS
+OVER FINANCIAL REPORTING WITH REFERENCE
+TO THESE CONSOLIDATED FINANCIAL
+STATEMENTS
+Membership No.: 105754
+161
+per PAUL ALVARES
+Partner
+Chartered Accountants
+REPORT ON OTHER LEGAL AND REGULATORY
+REQUIREMENTS
+As required by Section 143(3) of the Act, based on our audit
+and on the consideration of report of the other auditors
+on separate financial statements and the other financial
+information of subsidiaries, associates and joint ventures,
+as noted in the 'Other matter' paragraph we report, to the
+extent applicable, that:
+(a) We/the other auditors whose report we have relied
+upon have sought and obtained all the information and
+explanations which to the best of our knowledge and
+belief were necessary for the purposes of our audit of the
+aforesaid consolidated Ind AS financial statements;
+(b) In our opinion, proper books of account as required by
+law relating to preparation of the aforesaid consolidation
+of the financial statements have been kept so far as it
+appears from our examination of those books and reports
+of the other auditors;
+(c) The consolidated Balance Sheet, the consolidated
+Statement of Profit and Loss including the Statement
+of Other Comprehensive Income, the consolidated
+Cash Flow Statement and consolidated Statement
+of Changes in Equity dealt with by this Report are in
+agreement with the books of account maintained for
+the purpose of preparation of the consolidated Ind AS
+financial statements;
+(d) In our opinion, the aforesaid consolidated Ind AS
+financial statements comply with the Accounting
+Standards specified under Section 133 of the Act, read
+with Companies (Indian Accounting Standards) Rules,
+2015, as amended;
+(e) On the basis of the written representations received from
+the directors of the Holding Company as on March 31,
+2019 taken on record by the Board of Directors of
+the Holding Company and the reports of the statutory
+auditors who are appointed under Section 139 of the Act,
+of its subsidiary companies, associate companies and joint
+ventures, none of the directors of the Group's companies,
+its associates and joint ventures incorporated in India is
+disqualified as on March 31, 2019 from being appointed
+as a director in terms of Section 164 (2) of the Act;
+(f) With respect to the adequacy and the operating
+effectiveness of the internal financial controls over
+financial reporting with reference to these consolidated
+Ind AS financial statements of the Holding Company
+and its subsidiary companies, associate companies and
+joint ventures incorporated in India, refer to our separate
+Report in "Annexure 1" to this report;
+(g) In our opinion and based on the consideration of reports
+of other statutory auditors of the subsidiaries, associates
+and joint ventures, the managerial remuneration for the
+year ended March 31, 2019 has been paid / provided
+by the Holding Company, its subsidiaries, associates and
+joint ventures incorporated in India to their directors in
+accordance with the provisions of section 197 read with
+Schedule V to the Act;
+(h) With respect to the other matters to be included in
+the Auditor's Report in accordance with Rule 11 of the
+Companies (Audit and Auditors) Rules, 2014, as amended,
+in our opinion and to the best of our information and
+according to the explanations given to us and based on
+the consideration of the report of the other auditors on
+separate financial statements as also the other financial
+information of the subsidiaries, associates and joint
+ventures, as noted in the ‘Other matter' paragraph:
+i.
+The consolidated Ind AS financial statements disclose
+the impact of pending litigations on its consolidated
+financial position of the Group, its associates and
+joint ventures in its consolidated Ind AS financial
+statements - Refer note 40 to the consolidated Ind
+AS financial statements;
+ii. Provision has been made in the consolidated Ind AS
+financial statements, as required under the applicable
+law or accounting standards, for material foreseeable
+losses, if any, on long-term contracts including
+derivative contracts - Refer (a) note 23 and 29 to the
+consolidated Ind AS financial statements in respect
+of such items as it relates to the Group, its associates
+and joint ventures and (b) the Group's share of net
+profit/loss in respect of its associates;
+iii. There has been no delay in transferring amounts,
+required to be transferred, to the Investor Education
+and Protection Fund by the Holding Company,
+its subsidiaries, associates and joint ventures
+incorporated in India, except a sum of 3.2 million,
+which is held in abeyance due to pending legal cases.
+For S RBC & CO LLP
+ICAI Firm Registration No. : 324982E/E300003
+32,660.9
+31,896.6
+10
+Membership No.: 105754
+Mumbai, May 28, 2019
+C. S. MURALIDHARAN
+Chief Financial Officer
+22252
+15,226.1
+17,720.9
+30.6
+316.5
+23
+4,303.9
+4,044.6
+1,042.8
+2,189.6
+24
+5,712.5
+Partner
+266.0
+per PAUL ALVARES
+Chartered Accountants
+Total non-current liabilities
+(2) Current liabilities
+(a) Financial liabilities
+(i) Borrowings
+(ii) Trade payables
+(iii) Other financial liabilities
+(b) Other current liabilities
+(c) Provisions
+(d) Current tax liabilities (Net)
+Total current liabilities
+Total liabilities
+TOTAL EQUITY AND LIABILITIES
+The accompanying notes are an integral part of the consolidated financial statements
+As per our report of even date
+For S RBC & CO LLP
+ICAI Firm Registration No. : 324982E/E300003
+(d) Other non-current liabilities
+26,315.9
+222220
+198,643.2
+199,712.1
+223,180.8
+646,938.1
+645,163.5
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+SUDHIR V. VALIA
+Wholetime Director
+SUNIL R. AJMERA
+Company Secretary
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+Annual Report 2018-19
+166 Sun Pharmaceutical Industries Ltd.
+Consolidated Statement of Profit and Loss
+for the year ended March 31, 2019
+SUN
+173,396.2
+24,537.6
+1,328.3
+30
+25
+83,707.6
+79,797.0
+26
+41,478.7
+47,662.0
+27
+10,273.2
+13,377.2
+28
+7,344.0
+5,382.1
+29
+29,323.3
+51,096.6
+1,269.4
+(c) Deferred tax liabilities (Net)
+(b) Provisions
+(ii) Other financial liabilities
+15
+2,133.0
+20,040.1
+(v) Loans
+16
+3,093.5
+914.3
+(vi) Other financial assets
+17
+4,484.9
+4,795.5
+(c) Other current assets
+18
+23,148.5
+23,489.5
+(iv) Bank balances other than (iii) above
+Total current assets
+79,253.7
+14
+5,083.5
+336,246.2
+5,660.1
+328,804.5
+11
+78,859.8
+68,806.9
+Investments
+12
+39,507.2
+40,906.2
+(ii) Trade receivables
+13
+88,842.0
+78,152.8
+(iii) Cash and cash equivalents
+70,623.0
+310,691.9
+316,359.0
+TOTAL ASSETS
+Equity attributable to the equity shareholders of the Company
+414,090.6
+383,141.1
+Non-controlling interests
+72
+33,135.4
+38,841.6
+Total equity
+447,226.0
+421,982.7
+Liabilities
+(1) Non-current liabilities
+(a) Financial liabilities
+(i)
+Borrowings
+2,399.3
+380,741.8
+2,399.3
+411,691.3
+20
+(b) Other equity
+646,938.1
+645,163.5
+Specialty in progress
+FINANCIAL STATEMENTS > Consolidated
+Consolidated Balance Sheet
+as at March 31, 2019
+Particulars
+FINANCIAL STATEMENTS > Consolidated
+EQUITY AND LIABILITIES
+As at
+March 31, 2019
+165
+* in Million
+As at
+March 31, 2018
+Equity
+(a) Equity share capital
+19
+Notes
+RESPONSIBILITIES OF MANAGEMENT FOR THE
+CONSOLIDATED IND AS FINANCIAL STATEMENTS
+A. CASH FLOW FROM OPERATING ACTIVITIES
+(Increase) / Decrease in trade receivables
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+172 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+SUNIL R. AJMERA
+Company Secretary
+SUDHIR V. VALIA
+Wholetime Director
+DILIP S. SHANGHVI
+Managing Director
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 28, 2019
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For SRBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the consolidated financial statements
+105,143.6
+Closing balance
+Changes in fair value
+Other Changes
+The effect of changes in foreign exchange rates
+754.1
+103,852.7
+94.8
+94.2
+for the year ended March 31, 2019
+94.8
+NOTE: 1 GENERAL INFORMATION
+The consolidated financial statement were authorised
+for issue in accordance with a resolution of the directors
+on May 28, 2019.
+The difference between the carrying amount of the
+associate or joint venture at the date the equity
+method was discontinued, and the fair value of any
+retained interest and any proceeds from disposing
+of a part interest in the associate or joint venture is
+included in the determination of the gain or loss on
+disposal of the associate or joint venture. In addition,
+the Group accounts for all amounts previously
+recognised in other comprehensive income in
+relation to that associate or joint venture on the same
+basis as would be required if that associate or joint
+venture had directly disposed off the related assets
+or liabilities.
+An investment in an associate or a joint venture is
+accounted for using the equity method from the
+date on which the investee becomes an associate
+or a joint venture and discontinues from the date
+when the investment ceases to be an associate or a
+joint venture, or when the investment is classified
+as held for sale.
+decisions about the relevant activities require
+unanimous consent of the parties sharing control.
+The results and assets and liabilities of associates or
+joint ventures are incorporated in these consolidated
+financial statements using the equity method of
+accounting, except when the investment, or a portion
+thereof, is classified as held for sale, in which case
+it is accounted for in accordance with Ind AS 105.
+Under the equity method, an investment in an
+associate or a joint venture is initially recognised in
+the consolidated balance sheet at cost and adjusted
+thereafter to recognise the Group's share of the
+profit or loss and other comprehensive income of the
+associate or joint venture. Distributions received from
+an associate or a joint venture reduce the carrying
+amount of the investment. The carrying value of the
+Group's investment includes goodwill identified on
+acquisition, net of any accumulated impairment losses.
+When the Group's share of losses of an associate or
+a joint venture exceeds its interest in that associate
+or joint venture, the carrying amount of that interest
+(including any long-term investments) is reduced
+to zero and the recognition of further losses is
+discontinued except to the extent that the Group has
+obligations or has made payments on behalf of the
+associate or joint venture.
+A joint venture is a joint arrangement whereby the
+parties that have joint control of the arrangement
+have rights to the net assets of the joint arrangement.
+Joint control is the contractually agreed sharing of
+control of an arrangement, which exists only when
+Investment in Associates and Joint Ventures
+Associates are those entities over which the Group
+has significant influence. Significant influence is the
+power to participate in the financial and operating
+policy decisions of the entities but is not control or
+joint control of those policies.
+When the Group loses control of a subsidiary, a gain
+or loss is recognised in profit or loss and is calculated
+as the difference between (i) the aggregate of the
+fair value of the consideration received and the fair
+value of any retained interest and (ii) the previous
+carrying amount of the assets (including goodwill) and
+liabilities of the subsidiary and any non-controlling
+interests. All amounts previously recognised in
+other comprehensive income in relation to that
+subsidiary are accounted for as if the Group had
+directly disposed off the related assets or liabilities
+of the subsidiary (i.e. reclassified to profit or loss or
+transferred to another category of equity as specified/
+permitted by applicable Ind AS). The fair value of
+any investment retained in the former subsidiary at
+the date when control is lost is regarded as the fair
+value on initial recognition for subsequent accounting
+under Ind AS 109, or, when applicable, the cost on
+initial recognition of an investment in an associate or
+a joint venture.
+Changes in the Group's ownership interests in
+subsidiaries that do not result in the Group losing
+control over the subsidiaries are accounted for as
+equity transactions. The carrying amounts of the
+Group's interests and the non-controlling interests
+are adjusted to reflect the changes in their relative
+interests in the subsidiaries. Any difference between
+the amount by which the non-controlling interests are
+adjusted and the fair value of the consideration paid or
+received is recognised directly in equity and attributed
+to owners of the Company.
+Changes in the Group's ownership interests in
+existing subsidiaries
+The financial statements of the Group companies are
+consolidated on a line-by-line basis and intra-Group
+balances, transactions including unrealised gain /
+loss from such transactions and cash flows relating
+to transactions between members of the Group
+are eliminated upon consolidation. These financial
+statements are prepared by applying uniform
+accounting policies in use at the Group.
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+173
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+The consolidated financial statements comprise the
+financial statements of the Parent Company and its
+subsidiaries as disclosed in Note 39. Control exists
+when the parent has power over the entity, is
+exposed, or has rights, to variable returns from its
+involvement with the entity and has the ability to
+affect those returns by using its power over the
+entity. Power is demonstrated through existing rights
+that give the ability to direct relevant activities,
+those which significantly affect the entity's returns.
+Subsidiaries are consolidated from the date control
+commences until the date control ceases.
+Profit or loss and each component of other
+comprehensive income are attributed to the owners
+of the Company and to the non-controlling interests.
+Total comprehensive income of subsidiaries is
+attributed to the owners of the Company and to the
+non-controlling interests even if this results in the
+non-controlling interests having a deficit balance.
+a. Basis of consolidation
+The Group has consistently applied the following
+accounting policies to all periods presented in these
+consolidated financial statements.
+Level 3 inputs are unobservable inputs for the asset or
+liability.
+Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the
+asset or liability, either directly or indirectly; and
+Level 1 inputs are quoted prices (unadjusted) in active
+markets for identical assets or liabilities that the
+entity can access at the measurement date;
+In addition, for financial reporting purposes, fair value
+measurements are categorised into Level 1, 2, or 3
+based on the degree to which the inputs to the fair value
+measurements are observable and the significance of the
+inputs to the fair value measurement in its entirety, which
+are described as follows:
+liability, the Group takes into account the characteristics
+of the asset or liability if market participants would take
+those characteristics into account when pricing the
+asset or liability at the measurement date. Fair value
+for measurement and/or disclosure purposes in these
+consolidated financial statements is determined on such
+a basis, except for share-based payment transactions
+that are within the scope of Ind AS 102, leasing
+transactions that are within the scope of Ind AS 17, and
+measurements that have some similarities to fair value
+but are not fair value, such as net realisable value in Ind
+AS 2 or value in use in Ind AS 36.
+Fair value is the price that would be received to sell
+an asset or paid to transfer a liability in an orderly
+transaction between market participants at the
+measurement date, regardless of whether that price is
+directly observable or estimated using another valuation
+technique. In estimating the fair value of an asset or a
+Historical cost is generally based on the fair value of the
+consideration given in exchange for goods and services.
+The consolidated financial statements are presented
+in and all values are rounded to the nearest
+Million (*000,000) upto one decimal, except when
+otherwise indicated.
+The consolidated financial statements have been
+prepared on the historical cost basis, except for: (i) certain
+financial instruments that are measured at fair values at
+the end of each reporting period; (ii) Non-current assets
+classified as held for sale which are measured at the
+lower of their carrying amount and fair value less costs
+to sell; (iii) derivative financial instrument and (iv) defined
+benefit plans - plan assets that are measured at fair
+values at the end of each reporting period, as explained in
+the accounting policies below:
+2.2 Basis of preparation and presentation
+The Group has prepared its consolidated financial
+statements for the year ended March 31, 2019 in
+accordance with Indian Accounting Standards (Ind
+AS) notified under the Companies (Indian Accounting
+Standards) Rules, 2015 (as amended) together with the
+comparative period data as at and for the year ended
+March 31, 2018.
+2.1 Statement of compliance
+NOTE : 2 SIGNIFICANT ACCOUNTING POLICIES
+Sun Pharmaceutical Industries Limited ("the Parent
+Company") is a public limited company incorporated
+and domiciled in India, having its registered office at
+Vadodara, Gujarat, India and has its listing on the Bombay
+Stock Exchange Limited and National Stock Exchange
+of India Limited. The Company is in the business of
+manufacturing, developing and marketing a wide
+range of branded and generic formulations and Active
+Pharmaceutical Ingredients (APIs). The Parent Company
+and its subsidiaries (hereinafter referred to as "the
+Company" or "the Group") have various manufacturing
+locations spread across the world with trading and
+other incidental and related activities extending to the
+global markets.
+When a Group entity transacts with an associate
+or a joint venture of the Group, profits and losses
+resulting from the transactions with the associate
+or joint venture are recognised in the Group's
+consolidated financial statements only to the extent
+of interest in the associate or joint venture that are
+not related to the Group.
+(521.7)
+(32.1)
+3,256.5
+1,197.3
+455.2
+86,423.6
+79,064.5
+(10,029.2)
+(12,153.2)
+(15,392.6)
+(27,305.2)
+(1,624.0)
+(984.9)
+(7,981.4)
+(4,801.8)
+(4,765.2)
+(4,606.6)
+March 31, 2018
+March 31, 2019
+Year ended
+* in Million
+Year ended
+171
+Cash and cash equivalents in cash flow statement
+Less:- cash credit facilities included under loans repayable on demand in note 25
+Cash and cash equivalents (Refer note 14)
+Cash on hand
+Cheques, drafts on hand
+In deposit accounts with original maturity less than 3 months
+In current accounts
+Balances with banks
+1,472.8
+362.8
+70,623.0
+As at
+March 31, 2019
+180.5
+73.7
+3,300.1
+(518.0)
+1,210.0
+98,317.7
+5,876.2
+754.1
+(827.8)
+(2,372.0)
+103,852.7
+Derivatives
+Borrowings
+Derivatives
+Borrowings
+Year ended March 31, 2018
+Year ended March 31, 2019
+* in Million
+Change in financial liability/ asset arising from financing activities
+Changes from financing cash flows
+Opening balance
+Particulars
+189.2
+79,064.5
+70,623.0
+6.5
+79,253.7
+10.6
+764.3
+9.2
+70,623.0
+55,137.3
+24,099.3
+33,540.6
+36,308.9
+As at
+March 31, 2018
+* in Million
+79,064.5
+Annual Report 2018-19
+174 Sun Pharmaceutical Industries Ltd.
+SUN
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits are
+expected from their use. Gain or loss arising on such
+de-recognition is recognised in profit or loss, and are
+measured as the difference between the net disposal
+proceeds, if any, and the carrying amount of respective
+intangible assets as on the date of de-recognition.
+De-recognition of intangible assets
+The estimated useful life and amortisation method are
+reviewed at the end of each reporting period, with the
+effect of any changes in estimate being accounted for
+on a prospective basis.
+reviewed at the end of each reporting period, with the
+effect of any changes in estimate being accounted for
+on a prospective basis.
+The estimated useful life and the amortisation method
+for intangible assets with a finite useful life are
+Amortisation is recognised on a straight-line basis
+over the estimated useful lives of intangible assets.
+Intangible assets that are not available for use are
+amortised from the date they are available for use.
+The estimated useful lives for Product related
+intangibles and Other intangibles ranges
+from 3 to 20 years.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate. All other
+expenditures, including expenditures on internally
+generated goodwill and brands, are recognised in the
+statement of profit and loss as incurred.
+The consideration for acquisition of intangible
+asset which is based on reaching specific milestone
+that are dependent on the Group's future activity
+is recognised only when the activity requiring the
+payment is performed.
+Payments to third parties that generally take the form
+of up-front payments and milestones for in-licensed
+products, compounds and intellectual property are
+capitalised since the probability of expected future
+economic benefits criterion is always considered to be
+satisfied for separately acquired intangible assets.
+Acquired research and development intangible
+assets which are under development, are recognised
+as In-Process Research and Development assets
+("IPR&D"). IPR&D assets are not amortised, but
+evaluated for potential impairment on an annual
+basis or when there are indications that the carrying
+value may not be recoverable. Any impairment
+charge on such IPR&D assets is recognised in profit
+or loss. Intangible assets relating to products under
+development, other intangible assets not available
+for use and intangible assets having indefinite useful
+life are tested for impairment annually, or more
+frequently when there is an indication that the assets
+may be impaired. All other intangible assets are tested
+for impairment when there are indications that the
+carrying value may not be recoverable.
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable
+to preparing the asset for its intended use.
+Other development expenditure is recognised in profit
+or loss as incurred.
+⚫ the Group intends to and has sufficient
+resources/ability to complete development and to
+use or sell the asset.
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+177
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+• future economic benefits are probable; and
+⚫ the product or process is technically and
+commercially feasible;
+⚫ development costs can be measured reliably;
+Expenditure on research activities undertaken with
+the prospect of gaining new scientific or technical
+knowledge and understanding are recognised as
+an expense when incurred. Development activities
+involve a plan or design for the production of new
+or substantially improved products and processes.
+An internally-generated intangible asset arising from
+development is recognised if and only if all of the
+following have been demonstrated:
+Research and development
+Other intangible assets that are acquired by the Group
+and that have finite useful lives are measured at cost
+less accumulated amortisation and accumulated
+impairment losses, if any. Subsequent expenditures
+are capitalised only when they increase the future
+economic benefits embodied in the specific asset to
+which they relate.
+Other intangible assets
+On disposal of a cash-generating unit to which
+goodwill is allocated, the goodwill associated with
+the disposed cash-generating unit is included in the
+carrying amount of the cash-generating unit when
+determining the gain or loss on disposal.
+Goodwill represents the excess of consideration
+transferred, together with the amount of
+non-controlling interest in the acquiree, over the
+fair value of the Group's share of identifiable net
+assets acquired. Goodwill is measured at cost less
+accumulated impairment losses. A cash-generating
+unit to which goodwill has been allocated is tested
+for impairment annually, or more frequently when
+there is an indication that the unit may be impaired.
+The goodwill acquired in a business combination
+is, for the purpose of impairment testing, allocated
+to cash-generating units that are expected to
+benefit from the synergies of the combination.
+Any impairment loss for goodwill is recognised directly
+in profit or loss. An impairment loss recognised for
+goodwill is not reversed in subsequent periods.
+g. Goodwill and other intangible assets
+Goodwill
+recognised as expense as incurred. The capitalised
+costs are amortised over the lower of the estimated
+useful life of the software and the remaining useful
+life of the tangible fixed asset.
+*Includes assets taken/given under operating/finance lease
+Software for internal use, which is primarily acquired
+from third-party vendors and which is an integral part
+of a tangible asset, including consultancy charges
+for implementing the software, is capitalised as
+part of the related tangible asset. Subsequent costs
+associated with maintaining such software are
+2-21
+2-17
+h. Impairment of non-financial assets other than
+goodwill
+3-15
+The carrying amounts of the Group's non-financial
+assets are reviewed at each reporting date to
+determine whether there is any indication of
+impairment. If any such indication exists, then the
+asset's recoverable amount is estimated in order to
+determine the extent of the impairment loss, if any.
+The recoverable amount of an asset or
+cash-generating unit (as defined below) is the greater
+of its value in use and its fair value less costs to sell.
+In assessing value in use, the estimated future cash
+flows are discounted to their present value using a
+pre-tax discount rate that reflects current market
+assessments of the time value of money and the
+risks specific to the asset or the cash-generating unit
+for which the estimates of future cash flows have
+not been adjusted. For the purpose of impairment
+testing, assets are grouped together into the smallest
+group of assets that generates cash inflows from
+continuing use that are largely independent of the
+cash inflows of other assets or groups of assets (the
+"cash-generating unit”).
+In respect of assets other than goodwill, impairment
+losses recognised in prior periods are assessed at
+each reporting date for any indications that the loss
+has decreased or no longer exists. An impairment
+loss is reversed if there has been a change in the
+b) Contractual terms of the asset give rise on
+specified dates to cash flows that are solely
+payments of principal and interest (SPPI) on the
+principal amount outstanding.
+a) The asset is held within a business model
+whose objective is to hold assets for collecting
+contractual cash flows, and
+A 'debt instrument' is measured at the amortised cost
+if both the following conditions are met:
+Debt instruments at amortised cost
+. Equity instruments measured at fair value through
+other comprehensive income (FVTOCI)
+• Debt instruments and equity instruments at fair
+value through profit or loss (FVTPL)
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+• Debt instruments at amortised cost
+For purposes of subsequent measurement, financial
+assets are classified in four categories:
+Subsequent measurement
+All financial assets are recognised initially at fair value
+plus, in the case of financial assets not recorded at fair
+value through profit or loss, transaction costs that are
+attributable to the acquisition of the financial asset.
+Purchases or sales of financial assets that require
+delivery of assets within a time frame established by
+regulation or convention in the market place (regular
+way trades) are recognised on the date the group
+commits to purchase or sale the financial assets.
+Initial recognition and measurement
+Financial assets
+A financial instrument is any contract that gives rise to
+a financial asset of one entity and a financial liability or
+equity instrument of another entity.
+carrying amount and fair value less costs to sell.
+Non-current assets are not depreciated or amortised.
+j. Financial instruments
+Non-current assets (and disposal groups) classified
+as held for sale are measured at the lower of their
+After the disposal takes place, the Group accounts
+for any retained interest in the associate or joint
+venture in accordance with Ind AS 109 unless the
+retained interest continues to be an associate or
+a joint venture, in which case the Group uses the
+equity method (see the accounting policy regarding
+investments in associates or joint ventures above).
+Any retained portion of an investment in an associate
+or a joint venture that has not been classified as
+held for sale continues to be accounted for using
+the equity method. The Group discontinues the use
+of the equity method at the time of disposal when
+the disposal results in the Group losing significant
+influence over the associate or joint venture.
+When the Group is committed to a sale plan
+involving disposal of an investment, or a portion of
+an investment, in an associate or joint venture, the
+investment or the portion of the investment that will
+be disposed off is classified as held for sale when
+the criteria described above are met, and the Group
+discontinues the use of the equity method in relation
+to the portion that is classified as held for sale.
+When the Group is committed to a sale plan
+involving loss of control of a subsidiary, all of the
+assets and liabilities of that subsidiary are classified
+as held for sale when the criteria described above
+are met, regardless of whether the Group will retain
+a non-controlling interest in its former subsidiary
+after the sale.
+Non-current assets and disposal groups are classified
+as held for sale if their carrying amount will be
+recovered principally through a sale transaction
+rather than through continuing use. This condition
+is regarded as met only when the asset (or disposal
+group) is available for immediate sale in its present
+condition subject only to terms that are usual and
+customary for sales of such asset (or disposal group)
+and its sale is highly probable. Management must be
+committed to the sale, which should be expected to
+qualify for recognition as a completed sale within one
+year from the date of classification.
+i. Non-current assets held for sale
+estimates used to determine the recoverable amount.
+An impairment loss is reversed only to the extent
+that the asset's carrying amount does not exceed the
+carrying amount that would have been determined,
+net of depreciation or amortisation, if no impairment
+loss had been recognised.
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+178 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+An impairment loss is recognised in the profit or loss
+if the estimated recoverable amount of an asset or
+its cash generating unit is lower than its carrying
+amount. Impairment losses recognised in respect of
+cash-generating units are allocated first to reduce the
+carrying amount of any goodwill allocated to the units
+and then to reduce the carrying amount of the other
+assets in the unit on a pro-rata basis.
+2-25
+3-10
+5-100
+No. of years
+50-196
+the combination occurs, the Group reports provisional
+amounts for the items for which the accounting is
+incomplete. Those provisional amounts are adjusted
+during the measurement period (see above), or
+additional assets or liabilities are recognised, to
+reflect new information obtained about facts and
+circumstances that existed at the acquisition date
+that, if known, would have affected the amounts
+recognised at that date.
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+175
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+If the initial accounting for a business combination is
+incomplete by the end of the reporting period in which
+If the business combination is achieved in stages,
+any previously held equity interest is re-measured
+at its acquisition date fair value and any resulting
+gain or loss is recognised in profit or loss or OCI,
+as appropriate.
+A contingent liability of the acquiree is assumed in a
+business combination only if such a liability represents
+a present obligation and arises from a past event
+and its fair value can be measured reliably. On an
+acquisition-by-acquisition basis, the Group recognises
+any non-controlling interest in the acquiree either
+at fair value or at the non-controlling interest's
+proportionate share of the acquiree's identifiable
+net assets. Transaction costs that the Group incurs
+in connection with a business combination, such
+as finder's fees, legal fees, due diligence fees
+and other professional and consulting fees, are
+expensed as incurred.
+less the net recognised amount of the identifiable
+assets acquired and liabilities assumed. When the
+fair value of the net identifiable assets acquired
+and liabilities assumed exceeds the consideration
+transferred, a bargain purchase gain is recognised
+immediately in the OCI and accumulates the same
+in equity as capital reserve where there exists clear
+evidence of the underlying reasons for classifying
+the business combination as a bargain purchase
+else the gain is directly recognised in equity as
+capital reserve. Consideration transferred includes
+the fair values of the assets transferred, liabilities
+incurred by the Group to the previous owners of the
+acquiree, and equity interests issued by the Group.
+Consideration transferred also includes the fair value
+of any contingent consideration. Changes in the fair
+value of the contingent consideration that qualify
+as measurement period adjustments are adjusted
+retrospectively, with corresponding adjustments
+against goodwill or capital reserve, as the case maybe.
+The subsequent accounting for changes in the fair
+value of the contingent consideration that do not
+qualify as measurement period adjustments depends
+on how the contingent consideration is classified.
+Contingent consideration that is classified as equity is
+not remeasured at subsequent reporting dates and its
+subsequent settlement is accounted for within equity.
+Contingent consideration that is classified as an asset
+or a liability is remeasured at fair value at subsequent
+reporting dates with the corresponding gain or loss
+being recognised in profit or loss. Consideration
+transferred does not include amounts related to
+settlement of pre-existing relationships.
+The Group uses the acquisition method of accounting
+to account for business combinations that occurred
+on or after April 01, 2015. The acquisition date is
+generally the date on which control is transferred
+to the acquirer. Judgment is applied in determining
+the acquisition date and determining whether
+control is transferred from one party to another.
+Control exists when the Group is exposed to, or
+has rights to, variable returns from its involvement
+with the entity and has the ability to affect those
+returns through power over the entity. In assessing
+control, potential voting rights are considered only
+if the rights are substantive. The Group measures
+goodwill as of the applicable acquisition date at the
+fair value of the consideration transferred, including
+the recognised amount of any non-controlling interest
+in the acquiree and the fair value of the acquirer's
+previously held equity interest in the acquiree (if any),
+c. Business combinations
+The operating cycle is the time between the
+acquisition of assets for processing and their
+realisation in cash and cash equivalents. The Group
+has identified twelve months as its operating cycle.
+The Group classifies all other liabilities as non-current.
+Deferred tax assets and liabilities are classified as
+non-current assets and liabilities.
+• There is no unconditional right to defer the
+settlement of the liability for at least twelve months
+after the reporting period
+• It is due to be settled within twelve months after
+the reporting period, or
+•⚫ It is held primarily for the purpose of trading
+• It is expected to be settled in normal operating
+cycle
+All other assets are classified as non-current.
+A liability is current when:
+• Cash or cash equivalent unless restricted from
+being exchanged or used to settle a liability for at
+least twelve months after the reporting period
+Expected to be realised within twelve months after
+the reporting period, or
+.
+• Held primarily for the purpose of trading
+• Expected to be realised or intended to be sold or
+consumed in normal operating cycle
+The Group presents assets and liabilities in the
+balance sheet based on current / non-current
+classification. An asset is treated as current when it is:
+b. Current vs. Non-current
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+d. Foreign currency
+Foreign currency transactions
+In preparing the financial statements of each
+individual Group entity, transactions in currencies
+other than the entity's functional currency (foreign
+currencies) are translated at exchange rates at the
+dates of the transactions. Monetary assets and
+liabilities denominated in foreign currencies at the
+reporting date are translated into the functional
+currency at the exchange rate at that date.
+Exchange differences arising on the settlement of
+monetary items or on translating monetary items
+at rates different from those at which they were
+translated on initial recognition during the period or in
+previous period are recognised in profit or loss in the
+period in which they arise except for:
+• exchange differences on foreign currency
+Vehicles*
+Furniture and fixtures*
+Office equipment*
+Plant and equipment*
+Buildings including factory buildings*
+Leasehold improvements
+Leasehold land
+Asset Category
+Depreciation is recognised on the cost of assets (other
+than freehold land and Capital work-in-progress) less
+their residual values on straight-line method over their
+useful lives. Leasehold improvements are depreciated
+over period of the lease agreement or the useful life,
+whichever is shorter. Depreciation methods, useful
+lives and residual values are reviewed at the end of
+each reporting period, with the effect of any changes
+in estimate accounted for on a prospective basis.
+The estimated useful lives are as follows:
+Items of property, plant and equipment acquired
+through exchange of non-monetary assets are
+measured at fair value, unless the exchange
+transaction lacks commercial substance or the fair
+value of either the asset received or asset given up is
+not reliably measurable, in which case the acquired
+asset is measured at the carrying amount of the
+asset given up.
+An item of property, plant and equipment is
+derecognised upon disposal or when no future
+economic benefits are expected to arise from the
+continued use of the asset. Any gain or loss arising
+on the disposal or retirement of an item of property,
+plant and equipment is determined as the difference
+between the sales proceeds and the carrying amount
+of property, plant and equipment and is recognised in
+profit or loss.
+categories of property, plant and equipment when
+completed and ready for intended use. Depreciation of
+these assets, on the same basis as other assets,
+commences when the assets are ready for their
+intended use. When parts of an item of property, plant
+and equipment have different useful lives, they are
+accounted for as separate items (major components)
+of property, plant and equipment.
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+Particulars
+PHARMA
+176 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+Assets in the course of construction for production,
+supply or administrative purposes are carried at cost,
+less any recognised impairment loss. Cost includes
+purchase price, borrowing costs if capitalisation
+criteria are met and directly attributable cost of
+bringing the asset to its working condition for the
+intended use. Subsequent expenditures are capitalised
+only when they increase the future economic
+benefits embodied in the specific asset to which they
+relate. Such assets are classified to the appropriate
+Items of property, plant and equipment are stated in
+consolidated balance sheet at cost less accumulated
+depreciation and accumulated impairment losses, if
+any. Freehold land is not depreciated.
+f. Property, plant and equipment
+Operating segments are reported in a manner
+consistent with the internal reporting provided to the
+chief operating decision maker. The chief operating
+decision maker of the Company is responsible for
+allocating resources and assessing performance of the
+operating segments.
+e. Segment reporting
+Goodwill and fair value adjustments to identifiable
+assets acquired and liabilities assumed through
+acquisition of a foreign operation are treated as assets
+and liabilities of the foreign operation and translated
+at the rate of exchange prevailing at the end of each
+reporting period. Exchange differences arising are
+recognised in other comprehensive income.
+In addition, in relation to a partial disposal of
+a subsidiary that includes a foreign operation
+that does not result in the Group losing control
+over the subsidiary, the proportionate share of
+accumulated exchange differences are re-attributed
+to non-controlling interests and are not recognised
+in profit or loss. For all other partial disposals (i.e.
+partial disposals of associates or joint arrangements
+that do not result in the Group losing significant
+influence or joint control), the proportionate share of
+the accumulated exchange differences is reclassified
+to profit or loss.
+Indian Rupees at exchange rates at the end of each
+reporting period. The income and expenses of such
+foreign operations are translated at the average
+exchange rates for the period. Resulting foreign
+currency differences are recognised in other
+comprehensive income and presented within equity
+as part of Foreign Currency Translation Reserve (and
+attributed to non-controlling interests as appropriate).
+When a foreign operation is disposed off, the relevant
+amount in the Foreign Currency Translation Reserve is
+reclassified to profit or loss.
+For the purposes of presenting these consolidated
+financial statements, the assets and liabilities of
+Group's foreign operations, are translated to the
+Foreign operations
+• exchange differences on transactions entered into
+in order to hedge certain foreign currency risks (see
+note 2.2.j below for hedging accounting policies).
+exchange differences on monetary items receivable
+from or payable to a foreign operation for which
+settlement is neither planned nor likely to occur
+(therefore forming part of the net investment in
+the foreign operation), which are recognised in
+other comprehensive income and presented within
+equity as a part of Foreign Currency Translation
+Reserve. On disposal of the foreign operation,
+the relevant amount in the Foreign Currency
+Translation Reserve is reclassified to profit or loss.
+Non-monetary items that are measured in terms of
+historical cost in foreign currency are measured using
+the exchange rates at the date of initial transaction.
+borrowings relating to assets under construction
+for future productive use, which are included in
+the cost of those assets when they are regarded as
+an adjustment to interest costs on those foreign
+currency borrowings (see note 2.2.s).
+SUN
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost
+is calculated by taking into account any discount or
+premium on acquisition and fees or costs that are
+an integral part of the EIR. The EIR amortisation
+is included in Other Income in the profit or loss.
+The losses arising from impairment are recognised in
+the profit or loss.
+Cash and cash equivalents comprises of
+Cash and cash equivalents taken over on acquisition of subsidiary (Refer note 76)
+Effect of exchange differences on restatement of foreign currency cash and cash equivalents
+Cash and cash equivalents at the end of the year
+(11.2)
+207.5 35,621.0 333,301.9
+7.5
+43.8
+11,932.9
+3,681.7
+3.8
+3.8
+3.8
+^ 0.0
+2,399.3
+Balance as at March 31, 2019
+Issue of equity shares
+statement of profit and loss as per the
+local law of an overseas subsidiary
+Transfer from surplus in consolidated
+(6,493.0)
+(6,493.0)
+(6,088.2)
+(4,075.1)
+(2,013.1)
+(6,493.0)
+(246.9)
+43.0
+203.9
+(2,013.1)
+1,250.0
+3,174.2
+3,174.2
+(984.9)
+(984.9)
+(984.9)
+1,632.9 24,936.7
+48,878.5
+(13,247.1)
+336.6
+33,135.4
+Year ended
+March 31, 2019
+Profit before tax
+Particulars
+for the year ended March 31, 2019
+Consolidated Cash Flow Statement
+170 Sun Pharmaceutical Industries Ltd.
+169
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+SUDHIR V. VALIA
+Wholetime Director
+DILIP S. SHANGHVI
+Managing Director
+SUNIL R. AJMERA
+Company Secretary
+C. S. MURALIDHARAN
+Chief Financial Officer
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Mumbai, May 28, 2019
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No.: 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the consolidated financial statements
+^ (March 31, 2019: 11,790)
+Annual Report 2018-19
+@ (March 31, 2018: 62,365)
+7,177)
+# (March 31, 2017:
+* Represents re-measurements of the defined benefit plans
+447,226.0
+414,090.6
+SUN
+6,824.4
+(8,455.5)
+366.1
+26,654.2
+Total
+Non-
+controlling
+interests
+to owners
+of Parent
+Company
+Effective
+portion of
+cash flow
+hedges
+reserve
+OCI
+Equity
+Foreign
+General Retained
+instrument currency
+reserve earnings through through translation
+OCI
+reserve
+reserve
+Debt
+instrument
+Legal
+reserve
+Capital
+Amalgamation redemption
+Share
+option
+outstanding
+account
+reserve
+pending
+allotment
+Debenture
+redemption
+Capital Securities
+reserve premium
+Share
+application
+money
+capital
+share
+Equity
+Attributable
+Other comprehensive income (OCI)
+Reserves and surplus
+* in Million
+Particulars
+for the year ended March 31, 2019
+Consolidated Statement of Changes in Equity
+14,816.6
+42,054.1
+(4,791.6)
+26,654.2
+14,816.6
+32,078.6
+(15.7) 14,816.6
+82.7
+26,804.4
+(4,791.6)
+636.7
+53.4
+583.3
+366.1
+(15.7)
+82.7
+* 150.2
+FINANCIAL STATEMENTS > Consolidated
+(1,250.0)
+3,174.2
+Adjustment on account of Ind AS 115
+Buy-back/purchase of equity shares by
+overseas subsidiaries company
+redemption reserve
+Transfer from debenture
+(Refer note 76)
+On acquisition of subsidiary
+Dividend distribution tax
+Payment of dividend
+Total comprehensive income for the year
+year, net of tax
+Other comprehensive income for the
+foreign operations, net of tax
+of foreign operations/ net investment in
+Exchange difference arising on translation
+Profit for the year
+16,163.2
+5,424.4
+1,346.6
+PHARMA
+* in Million
+Year ended
+March 31, 2018
+38,102.0
+Net cash used in investing activities (B)
+Dividend received
+5,103.7
+6,843.4
+Interest received
+(855.0)
+(228.0)
+Net cash outflow on acquisition of subsidiary (Refer note 76)
+65,987.1
+23,897.5
+Fixed deposits / margin money matured
+(16,812.3)
+(4,486.1)
+Fixed deposits / margin money placed
+Bank balances not considered as cash and cash equivalents
+349,923.7
+(25,847.2)
+13,230.0
+(405,866.8)
+(783.3)
+1,230.7
+(353,957.3)
+352,070.3
+Proceeds from sale of investments
+Purchase of investments
+Received back / matured
+Given / placed
+Loans/inter corporate deposits
+intangible assets
+664.9
+504.7
+Proceeds from disposal of property, plant and equipment and other
+(19,607.8)
+(32,128.2)
+223.8
+(6,812.5)
+Payments for purchase of property, plant and equipment (including capital work-in-progress,
+other intangible assets and intangible assets under development)
+371.6
+(33,708.1)
+CASH FLOW FROM FINANCING ACTIVITIES
+Cash and cash equivalents at the beginning of the year
+Net (decrease) / increase in cash and cash equivalents (A+B+C)
+Net cash used in financing activities (C)
+Dividend distribution tax
+Dividend paid
+Finance costs
+Particulars
+for the year ended March 31, 2019
+Consolidated Cash Flow Statement
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+application money received
+9.1
+11,625.7
+(11,273.5)
+3.8
+Proceeds from issue of equity shares on exercise of stock options / share
+Net increase / (decrease) in working capital demand loans
+(152.8)
+(8,455.5)
+Dividend payment to non-controlling interests
+(6,754.5)
+(6,088.2)
+Payment for buy-back of equity shares of parent and buy-back of equity shares held by non-
+controlling interests of subsidiaries
+(127,811.2)
+(168,073.7)
+Repayment of borrowings
+122,061.7
+176,975.2
+Proceeds from borrowings
+C.
+CASH FLOW FROM INVESTING ACTIVITIES
+B.
+39,071.5
+(170.6)
+7.5
+1,095.9
+(339.4)
+(64.5)
+Sundry balances written back, net
+0.1
+(234.0)
+(180.3)
+(1,236.6)
+(1,433.6)
+Net (gain) / loss arising on financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net loss on sale of financial assets measured at fair value through other comprehensive income
+Provision / write off / (reversal) for doubtful trade receivables / advances
+(371.6)
+(223.8)
+Dividend income on investments
+(5,197.6)
+(6,692.1)
+Interest income
+5,175.7
+5,552.5
+201.6
+665.6
+26.7
+12.9
+Loss on sale / write off of property, plant and equipment and other intangible assets, net
+Finance costs
+Impairment of property, plant and equipment, goodwill and other intangible assets
+14,998.4
+17,532.5
+Depreciation and amortisation expense
+Adjustments for:
+34,789.8
+Income recognised in respect of share based payments to employees
+(1.0)
+Impairment in value of investments, net
+Effect of exchange rate changes
+21,964.5
+Net cash generated from operating activities (A)
+(7,417.4)
+(8,864.1)
+Income tax paid (net of refund)
+46,488.9
+30,828.6
+Cash generated from operations
+3,197.3
+(3,877.9)
+Increase (Decrease) in provisions
+(217.4)
+137.2
+Increase (Decrease) in other liabilities
+Notes:
+3,830.4
+993.7
+(8,544.6)
+(40.0)
+(7,730.1)
+(8,578.4)
+(7,090.0)
+48,612.0
+57,788.6
+253.5
+4,856.7
+(725.7)
+Increase (Decrease) in trade payables
+(Increase) Decrease in other assets
+(Increase) Decrease in inventories
+Movements in working capital:
+Operating profit before working capital changes
+(1,163.3)
+Specialty in progress
+Ind AS 12: Income Taxes (amendments relating to
+income tax consequences of dividend)
+The amendment relating to income tax consequences
+of dividend clarify that an entity shall recognise the
+income tax consequences of dividends in profit or
+loss, other comprehensive income or equity according
+to where the entity originally recognised those past
+transactions or events. It is relevant to note that the
+amendment does not amend situations where the
+entity pays a tax on dividend which is effectively a
+portion of dividends paid to taxation authorities on
+behalf of shareholders. Such amount paid or payable
+to taxation authorities continues to be charged to
+equity as part of dividend, in accordance with Ind AS
+12. The Group is evaluating the impact if any on its
+consolidated financial statements.
+182 Sun Pharmaceutical Industries Ltd.
+Changes in fair value of the designated portion
+of derivatives that qualify as fair value hedges are
+recognised in profit or loss immediately, together with
+any changes in the fair value of the hedged asset or
+liability that are attributable to the hedged risk.
+hedge relationship to which the Group wishes to
+apply hedge accounting and the risk management
+objective and strategy for undertaking the hedge.
+The documentation includes the Group's risk
+management objective and strategy for undertaking
+hedge, the hedging/economic relationship, the
+hedged item or transaction, the nature of the risk
+being hedged, hedge ratio and how the entity will
+assess the effectiveness of changes in the hedging
+instrument's fair value in offsetting the exposure to
+changes in the hedged item's fair value or cash flows
+attributable to the hedged risk. Such hedges are
+expected to be highly effective in achieving offsetting
+changes in fair value or cash flows and are assessed
+on an ongoing basis to determine that they actually
+have been highly effective throughout the financial
+reporting periods for which they were designated.
+Hedges that meet the strict criteria for hedge
+accounting are accounted for, as described below:
+(i) Fair value hedges
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+Annual Report 2018-19
+At the inception of a hedge relationship, the
+Group formally designates and documents the
+Hedges of a net investment in a foreign operation.
+• Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable to
+a particular risk associated with a recognised asset
+or liability or a highly probable forecast transaction
+or the foreign currency risk in an unrecognised firm
+commitment
+• Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+Derivative financial instruments and hedge accounting
+Initial recognition and subsequent measurement
+The Group uses derivative financial instruments,
+such as forward currency contracts, full currency
+swap, options and interest rate swaps to hedge
+its foreign currency risks and interest rate risks
+respectively. Such derivative financial instruments
+are initially recognised at fair value on the date on
+which a derivative contract is entered into and are
+subsequently re-measured at fair value at the end
+of each reporting period. Derivatives are carried as
+financial assets when the fair value is positive and as
+financial liabilities when the fair value is negative.
+Any gains or losses arising from changes in the fair
+value of derivatives are taken directly to profit or loss,
+except for the effective portion of cash flow hedges,
+which is recognised in OCI and later reclassified to
+profit or loss when the hedge item affects profit or loss
+or treated as basis adjustment if a hedged forecast
+transaction subsequently results in the recognition of
+a non-financial asset or non-financial liability.
+For the purpose of hedge accounting, hedges
+are classified as:
+assets. Changes to the business model are expected
+to be infrequent. The Group's senior management
+determines change in the business model as a result
+of external or internal changes which are significant
+to the Group's operations. Such changes are evident
+to external parties. A change in the business model
+occurs when the Group either begins or ceases to
+perform an activity that is significant to its operations.
+If the Group reclassifies financial assets, it applies the
+reclassification prospectively from the reclassification
+date which is the first day of the immediately next
+reporting period following the change in business
+model. The Group does not restate any previously
+recognised gains, losses (including impairment gains or
+losses) or interest.
+The Group determines classification of financial
+assets and liabilities on initial recognition. After initial
+recognition, no reclassification is made for financial
+assets which are equity instruments and financial
+liabilities. For financial assets which are debt
+instruments, a reclassification is made only if there
+is a change in the business model for managing those
+Reclassification of financial assets
+Derivatives embedded in non-derivative host
+contracts that are not financial assets within the
+scope of Ind AS 109 are accounted for as separate
+derivatives and recorded at fair value if their economic
+characteristics and risks are not closely related to
+those of the host contracts and the host contracts
+are not held for trading or designated at fair value
+though profit or loss. These embedded derivatives
+are measured at fair value with changes in fair value
+recognised in profit or loss, unless designated as
+effective hedging instruments.
+Embedded derivatives
+A financial liability is derecognised when the
+obligation under the liability is discharged or
+cancelled or expires. When an existing financial
+liability is replaced by another from the same lender
+on substantially different terms, or the terms of
+an existing liability are substantially modified,
+such an exchange or modification is treated as
+the derecognition of the original liability and
+the recognition of a new liability. The difference
+between the carrying amount of the financial liability
+derecognised and the consideration paid and payable
+is recognised in profit or loss.
+Derecognition
+Financial guarantee contracts are those contracts
+that require a payment to be made to reimburse the
+holder for a loss it incurs because the specified debtor
+fails to make a payment when due in accordance with
+the terms of a debt instrument. Financial guarantee
+contracts are recognised initially as a liability at fair
+value, adjusted for transaction costs that are directly
+attributable to the issuance of the guarantee. If not
+designated as at FVTPL, are subsequently measured at
+the higher of the amount of loss allowance determined
+as per impairment requirements of Ind AS 109 and the
+amount initially recognised less cumulative amount of
+income recognised.
+Financial guarantee contracts
+EIR method. Amortised cost is calculated by taking
+into account any discount or premium on acquisition
+and fees or costs that are an integral part of the EIR.
+The EIR amortisation is included as finance costs in the
+profit or loss.
+for the year ended March 31, 2019
+(ii) Cash flow hedges
+The effective portion of changes in the fair value
+of the hedging instrument is recognised in OCI in
+the cash flow hedge reserve, while any ineffective
+portion is recognised immediately in profit or loss.
+The Group uses forward currency contracts as
+hedges of its exposure to foreign currency risk
+in forecast transactions and firm commitments.
+Amounts recognised as OCI are transferred to profit
+or loss when the hedged transaction affects profit or
+loss, such as when a forecast sale occurs. When the
+hedged item is the cost of a non-financial asset or
+non-financial liability, the amounts recognised as OCI
+are transferred to the initial carrying amount of the
+non-financial asset or liability.
+If the hedging instrument expires or is sold,
+terminated or exercised or if its designation as a
+hedge is revoked, or when the hedge no longer meets
+the criteria for hedge accounting, any cumulative
+gain or loss previously recognised in OCI remains
+separately in equity until the forecast transaction
+occurs or the foreign currency firm commitment
+is met. When a forecast transaction is no longer
+expected to occur, the gain or loss accumulated in
+equity is recognised immediately in profit or loss.
+(iii) Net Investment Hedge
+m. Cash and cash equivalents
+The factors that the Company considers in
+determining the allowance for slow moving, obsolete
+and other non-saleable inventory include estimated
+shelf life, planned product discontinuances, price
+changes, ageing of inventory and introduction of
+competitive new products, to the extent each of
+these factors impact the Company's business and
+markets. The Company considers all these factors and
+adjusts the inventory provision to reflect its actual
+experience on a periodic basis.
+Net realisable value is the estimated selling
+price in the ordinary course of business, less the
+estimated costs of completion and costs necessary
+to make the sale.
+goods comprises direct material, direct labour and
+an appropriate proportion of variable and fixed
+overhead expenditure.
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade, stores
+and spares and finished goods are measured at the
+lower of cost and net realisable value. The cost of all
+categories of inventories is based on the weighted
+average method. Cost of raw materials and packing
+materials, stock-in-trade, stores and spares includes
+cost of purchases and other costs incurred in
+bringing the inventories to their present location
+and condition. Cost of work-in-progress and finished
+I. Inventories
+Amounts due from lessees under finance leases are
+recorded as receivables at the Group's net investment
+in the leases. Finance lease income is allocated
+to accounting periods so as to reflect a constant
+periodic rate of return on the Group's net investment
+outstanding in respect of the leases.
+Rental income from operating lease is generally
+recognised on a straight-line basis over the term of the
+relevant lease. Where the rentals are structured solely
+to increase in line with expected general inflation to
+compensate for the Group's expected inflationary
+cost increases, such increases are recognised in the
+year in which such benefits accrue. Initial direct costs
+incurred in negotiating and arranging an operating
+lease are added to the carrying amount of the
+leased asset and recognised over the lease term on
+the same basis as rental income. Contingent rents
+are recognised as revenue in the period in which
+they are earned.
+Group as a lessor
+Operating lease payments are generally recognised as
+an expense in the profit or loss on a straight-line basis
+over the lease term. Where the rentals are structured
+solely to increase in line with expected general
+inflation to compensate for the lessor's expected
+inflationary cost increases, such increases are
+recognised in the year in which such benefits accrue.
+Contingent rentals arising under operating leases are
+also recognised as expenses in the periods in which
+they are incurred.
+of the lease liability so as to achieve a constant rate
+of interest on the remaining balance of the liability.
+Finance charges are recognised in profit or loss as
+finance costs. Contingent rentals are recognised as
+expenses in the periods in which they are incurred.
+A leased asset is depreciated over the useful life of
+the asset. However, if there is no reasonable certainty
+that the Company will obtain ownership by the end
+of the lease term, the asset is depreciated over the
+shorter of the estimated useful life of the asset and
+the lease term.
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+183
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+Finance leases are capitalised at the commencement
+of the lease at the inception date fair value of the
+leased assets or, if lower, at the present value of the
+minimum lease payments. The corresponding liability
+to the lessor is included in the consolidated balance
+sheet as a finance lease obligation. Lease payments are
+apportioned between finance charges and reduction
+Group as a lessee
+A lease that transfers substantially all the risks
+and rewards incidental to ownership to the lessee
+is classified as a finance lease. All other leases are
+classified as operating leases.
+k. Leases
+Dividend distribution to equity holders of the Parent
+The Parent Company recognises a liability to make
+dividend distributions to equity holders of the
+parent when the distribution is authorised and the
+distribution is no longer at the discretion of the
+Parent Company. As per the corporate laws in India, a
+distribution is authorised when it is approved by the
+shareholders. A corresponding amount is recognised
+directly in equity.
+Own equity instruments that are reacquired (treasury
+shares) are deducted from equity. No gain or loss is
+recognised in profit or loss on the purchase, sale, issue
+or cancellation of the Group's own equity instruments.
+Consideration paid or received shall be recognised
+directly in equity.
+The Group has created an Employee Benefit Trust
+(EBT) for providing share-based payment to its
+employees. The Group uses EBT as a vehicle for
+distributing shares to employees under the employee
+remuneration schemes. The Group treats EBT as
+its extension and shares held by EBT are treated as
+treasury shares.
+The group designates certain foreign currency liability
+as hedge against certain net investment in foreign
+subsidiaries. Hedges of net investments in foreign
+operations are accounted similar to cash flow hedges.
+Any gain or loss on the hedging instrument relating
+to the effective portion of the hedge is recognised
+in other comprehensive income and held in foreign
+currency translation reserve ('FCTR')- a component
+of equity. The ineffective portion of the gain or
+loss on these hedges is immediately recognised
+in the consolidated statement of profit and loss.
+The amounts accumulated in equity are included in
+the consolidated statement of profit and loss when
+the foreign operation is disposed or partially disposed.
+Treasury shares
+Notes to the Consolidated Financial Statements
+181
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+• The Group has transferred its rights to receive
+contractual cash flows from the asset or has
+assumed an obligation to pay the received cash
+flows in full without material delay to a third party
+under a 'pass-through' arrangement; and either
+(a) the Group has transferred substantially all the
+risks and rewards of the asset, or (b) the Group
+has neither transferred nor retained substantially
+all the risks and rewards of the asset, but has
+transferred control of the asset.
+• The contractual rights to receive cash flows from
+the asset have expired, or
+A financial asset (or, where applicable, a part of a
+financial asset or part of a group of similar financial
+assets) is primarily derecognised (i.e. removed from
+the Group's consolidated balance sheet) when:
+Derecognition
+Equity instruments included within the FVTPL
+category are measured at fair value with all changes
+recognised in the profit or loss.
+loss and excluding dividends, are recognised in the
+OCI. There is no recycling of the amounts from
+OCI to profit or loss, even on sale of investment.
+However, the Group may transfer the cumulative gain
+or loss within equity.
+If the Group decides to classify an equity instrument
+as at FVTOCI, then all fair value changes on the
+instrument, including foreign exchange gain or
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which
+are held for trading and contingent consideration
+recognised by an acquirer in a business combination
+to which Ind AS103 applies are classified as at FVTPL.
+For all other equity instruments, the Group may
+make an irrevocable election to present subsequent
+changes in the fair value in OCI. The Group makes
+such election on an instrument-by-instrument basis.
+The classification is made on initial recognition and
+is irrevocable.
+Equity instruments
+Debt instruments included within the FVTPL category
+are measured at fair value with all the changes in the
+profit or loss.
+In addition, the Group may elect to designate a debt
+instrument, which otherwise meets amortised cost or
+FVTOCI criteria, as at FVTPL. However, such election
+is allowed only if doing so reduces or eliminates a
+measurement or recognition inconsistency (referred
+to as 'accounting mismatch').
+When the Group has transferred its rights to receive
+cash flows from an asset or has entered into a
+pass-through arrangement, it evaluates if and to
+what extent it has retained the risks and rewards
+of ownership. When it has neither transferred nor
+retained substantially all of the risks and rewards of
+the asset, nor transferred control of the asset, the
+Group continues to recognise the transferred asset
+to the extent of the Group's continuing involvement.
+In that case, the Group also recognises an associated
+liability. The transferred asset and the associated
+liability are measured on a basis that reflects the rights
+and obligations that the Group has retained.
+FVTPL is a residual category for debt instruments.
+Any debt instrument, which does not meet the criteria
+for categorisation as at amortised cost or as FVTOCI,
+is classified as at FVTPL.
+reported as interest income using the EIR method.
+Debt instruments included within the FVTOCI
+category are measured initially as well as at each
+reporting date at fair value. Fair value movements
+are recognised in the other comprehensive income
+(OCI). However, the Group recognises interest
+income, impairment losses and reversals and
+foreign exchange gain or loss in the profit or loss.
+On derecognition of the asset, cumulative gain or
+loss previously recognised in OCI is reclassified
+from the equity to profit or loss. Interest earned
+whilst holding FVTOCI debt instrument is
+b) The contractual terms of the instrument give rise
+on specified dates to cash flows that are SPPI on
+the principal amount outstanding.
+a) The objective of the business model is achieved
+both by collecting contractual cash flows and
+selling the financial assets, and
+A ‘debt instrument' is measured as at FVTOCI if both
+of the following criteria are met:
+Debt instrument at FVTOCI
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+179
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+Debt instrument at FVTPL
+Cash and cash equivalent in the consolidated balance
+sheet comprise cash at banks and on hand and
+short-term deposits with an original maturity of three
+months or less, which are subject to an insignificant
+risk of changes in value.
+On derecognition of a financial asset in its entirety,
+the difference between the asset's carrying amount
+and the sum of the consideration received and
+receivable and the cumulative gain or loss that had
+been recognised in OCI and accumulated in equity is
+recognised in profit or loss if such gain or loss would
+have otherwise been recognised in profit or loss on
+disposal of that financial asset.
+In accordance with Ind AS 109, the Group applies
+expected credit loss (ECL) model for measurement
+and recognition of impairment loss on the Trade
+receivables or any contractual right to receive cash or
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using the
+Financial liabilities that are not held-for-trading and
+are not designated as at FVTPL are measured at
+amortised cost in subsequent accounting periods.
+The carrying amounts of financial liabilities that
+are subsequently measured at amortised cost are
+determined based on the effective interest rate (EIR)
+method. Interest expense that is not capitalised as
+part of costs of an asset is included in the 'Finance
+costs' line item in the profit or loss.
+Financial liabilities subsequently measured at
+amortised cost
+Financial liabilities designated upon initial recognition
+at fair value through profit or loss are designated as
+such at the initial date of recognition, and only if the
+criteria in Ind AS 109 are satisfied. For instruments
+not held-for-trading financial liabilities designated
+as at FVTPL, fair value gains/ losses attributable to
+changes in own credit risk are recognised in OCI,
+unless the recognition of the effects of changes
+in the liability's credit risk in OCI would create or
+enlarge an accounting mismatch in profit or loss, in
+which case these effects of changes in credit risk are
+recognised in profit or loss. These gains/loss are not
+subsequently transferred to profit or loss. All other
+changes in fair value of such liability are recognised in
+the consolidated statement of profit or loss.
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL when the
+financial liability is either contingent consideration
+recognised by the Group as an acquirer in a business
+combination to which Ind AS 103 applies or is held for
+trading or is designated upon initial recognition as at
+fair value through profit or loss. Financial liabilities
+are classified as held for trading if they are incurred
+principally for the purpose of repurchasing in the
+near term or on initial recognition it is part of a
+portfolio of identified financial instruments that the
+Group manages together and has a recent actual
+pattern of short-term profit-taking. This category
+also includes derivative financial instruments that
+are not designated as hedging instruments in hedge
+relationships as defined by Ind AS 109. Gains or losses
+on liabilities held for trading are recognised in the
+profit or loss.
+All financial liabilities are subsequently measured
+at amortised cost using the effective interest
+method or at FVTPL.
+Subsequent measurement
+bank overdrafts, financial guarantee contracts and
+derivative financial instruments.
+All financial liabilities are recognised initially at fair
+value and, in the case of loans and borrowings and
+payables, net of directly attributable transaction costs.
+The Company's financial liabilities include trade
+and other payables, loans and borrowings including
+The component parts of compound financial
+instruments (convertible notes) issued by the Group
+are classified separately as financial liabilities and
+equity in accordance with the substance of the
+contractual arrangements and the definitions of a
+financial liability and an equity instrument.
+Initial recognition and measurement
+Compound financial instruments
+Impairment of financial assets
+Repurchase of the Parent Company's own equity
+instruments is recognised and deducted directly in
+equity. No gain or loss is recognised in profit or loss on
+the purchase, sale, issue or cancellation of the Parent
+Company's own equity instruments.
+Equity instruments
+Debt and equity instruments issued by a Group entity
+are classified as either financial liabilities or as equity
+in accordance with the substance of the contractual
+arrangements and the definitions of a financial liability
+and an equity instrument.
+Financial liabilities and equity instruments
+Classification as debt or equity
+As a practical expedient, the Group uses a provision
+matrix to determine impairment loss allowance on
+portfolio of its trade receivables. The provision matrix
+is based on its historically observed default rates
+over the expected life of the trade receivables and
+is adjusted for forward-looking estimates. At every
+reporting date, the historical observed default rates
+are updated and changes in the forward-looking
+estimates are analysed.
+The Group follows 'simplified approach' for
+recognition of impairment loss allowance on trade
+receivables or any contractual right to receive cash or
+another financial asset. The application of simplified
+approach does not require the Group to track changes
+in credit risk. Rather, it recognises impairment loss
+allowance based on lifetime ECLs at each reporting
+date, right from its initial recognition.
+another financial asset that result from transactions
+that are within the scope of Ind AS 115.
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+180 Sun Pharmaceutical Industries Ltd.
+An equity instrument is any contract that evidences
+a residual interest in the assets of an entity after
+deducting all of its liabilities. Equity instruments
+issued by a Group entity are recognised at the
+proceeds received, net of direct issue costs.
+For the purpose of the consolidated statement of
+cash flow, cash and cash equivalents consist of cash
+and short-term deposits, as defined above, net of
+outstanding bank overdrafts as they are considered an
+integral part of the Company's cash management.
+Annual Report 2018-19
+assets
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+The Parent Company presents basic and diluted
+earnings per share ("EPS") data for its equity shares.
+Basic EPS is calculated by dividing the profit or loss
+u. Earnings per share
+Minimum Alternate Tax ('MAT') credit is recognised as
+deferred tax asset only when and to the extent there is
+convincing evidence that the Company will pay normal
+income tax during the period for which the MAT
+credit can be carried forward for set-off against the
+normal tax liability. MAT credit recognised as an asset
+is reviewed at each Balance Sheet date and written
+down to the extent the aforesaid convincing evidence
+no longer exists.
+A deferred tax asset is recognised to the extent
+that it is probable that future taxable profits will be
+available against which the temporary difference can
+be utilised. Deferred tax assets are reviewed at each
+reporting date and are reduced to the extent that it
+is no longer probable that the related tax benefit will
+be realised. Withholding tax arising out of payment
+of dividends to shareholders under the Indian Income
+tax regulations is not considered as tax expense for
+the Company and all such taxes are recognised in the
+consolidated statement of changes in equity as part of
+the associated dividend payment.
+Deferred tax is measured at the tax rates that are
+expected to be applied to the temporary differences
+when they reverse, based on the laws that have been
+enacted or substantively enacted by the end of the
+reporting period. Deferred tax assets and liabilities are
+offset if there is a legally enforceable right to set off
+corresponding current tax assets against current tax
+liabilities and the deferred tax assets and deferred tax
+liabilities relate to income taxes levied by the same tax
+authority on the Company.
+Deferred tax is recognised on temporary differences
+between the carrying amounts of assets and liabilities
+in the consolidated financial statements and the
+corresponding tax bases used in the computation
+of taxable profit. Deferred tax is not recognised for
+the temporary differences that arise on the initial
+recognition of assets or liabilities in a transaction
+that is not a business combination and that affects
+neither accounting nor taxable profits and taxable
+temporary differences arising upon the initial
+recognition of goodwill.
+liabilities are offset where the Company has a legally
+enforceable right to offset and intends either to settle
+on a net basis, or to realise the asset and settle the
+liability simultaneously.
+Income tax expense consists of current and deferred
+tax. Income tax expense is recognised in profit or
+loss except to the extent that it relates to items
+recognised in OCI or directly in equity, in which
+case it is recognised in OCI or directly in equity
+respectively. Current tax is the expected tax payable
+on the taxable profit for the year, using tax rates
+enacted or substantively enacted by the end of the
+reporting period, and any adjustment to tax payable in
+respect of previous years. Current tax assets and tax
+t. Income tax
+Borrowing costs that are directly attributable to the
+construction or production of a qualifying asset are
+capitalised as part of the cost of that asset. All other
+borrowing costs are expensed in the period in which
+they occur. Borrowing costs consist of interest and
+other costs that an entity incurs in connection with
+the borrowing of funds. Borrowing costs also includes
+exchange differences to the extent regarded as an
+adjustment to the borrowing costs. A qualifying asset
+is one that necessarily takes substantial period of time
+to get ready for its intended use.
+s. Borrowing costs
+For cash-settled share-based payments, a liability
+is recognised for the goods or services acquired,
+measured initially at the fair value of the liability.
+At the end of each reporting period until the liability
+is settled, and at the date of settlement, the fair value
+of the liability is remeasured, with any changes in fair
+value recognised in profit or loss for the year.
+The grant date fair value of options granted to
+employees is recognised as an employee expense,
+with a corresponding increase in equity, on a straight
+line basis, over the vesting period, based on the
+Group's estimate of equity instruments that will
+eventually vest. At the end of each reporting period,
+the Group revises its estimate of the number of equity
+instruments expected to vest. The impact of the
+revision of the original estimates, if any, is recognised
+in profit or loss such that the cumulative expense
+reflects the revised estimate, with a corresponding
+adjustment to the equity-settled employee
+benefits reserve.
+Share-based payment arrangements
+The Group's contributions to defined contribution
+plans are recognised as an expense as and when the
+services are received from the employees entitling
+them to the contributions. The Group does not have
+any obligation other than the contribution made.
+Defined contribution plans
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+186 Sun Pharmaceutical Industries Ltd.
+187
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+attributable to equity shareholders of the Parent
+Company by the weighted average number of equity
+shares outstanding during the period. Diluted EPS is
+determined by adjusting the profit or loss attributable
+to equity shareholders and the weighted average
+number of equity shares outstanding for the effects of
+all dilutive potential ordinary shares, which includes all
+stock options granted to employees.
+n. Provisions, contingent liabilities and contingent
+when calculating the capitalisation rate on general
+borrowings. The Group is evaluating the impact if any
+on its consolidated financial statements.
+The amendments clarify that if any specific borrowing
+remains outstanding after the related asset is ready
+for its intended use or sale, that borrowing becomes
+part of the funds that an entity borrows generally
+Annual amendments to Ind AS
+Ind AS 23 - Borrowing Costs
+The amendments clarify that if a plan amendment,
+curtailment or settlement occurs, it is mandatory
+that the current service cost and the net interest for
+the period after the re-measurement are determined
+using the assumptions used for the re-measurement.
+In addition, amendments have been included to
+clarify the effect of a plan amendment, curtailment or
+settlement on the requirements regarding the asset
+ceiling. The group is evaluating the impact if any on its
+consolidated financial statements.
+Ind AS 19 - Plan Amendment, Curtailment or
+Settlement
+or after April 01, 2019. The Group is evaluating the
+requirements of the standard and its effect on the
+consolidated financial statements.
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+Annual Report 2018-19
+188 Sun Pharmaceutical Industries Ltd.
+The amendments should be applied retrospectively
+and are effective for annual periods beginning on
+Ind AS 109: Prepayment Features with Negative
+Compensation
+Ind AS 12 - Income taxes (amendments relating
+uncertainty over income tax treatments)
+The amendment to Appendix C of Ind AS 12
+specifies that the amendment is to be applied to the
+determination of taxable profit (tax loss), tax bases,
+unused tax losses, unused tax credits and tax rates,
+when there is uncertainty over income tax treatments
+under Ind AS 12. It outlines the following: (1) the
+entity has to use judgement, to determine whether
+each tax treatment should be considered separately
+or whether some can be considered together.
+The decision should be based on the approach
+which provides better predictions of the resolution
+of the uncertainty (2) the entity is to assume that
+the taxation authority will have full knowledge of all
+relevant information while examining any amount (3)
+entity has to consider the probability of the relevant
+taxation authority accepting the tax treatment and
+the determination of taxable profit (tax loss), tax
+bases, unused tax losses, unused tax credits and tax
+rates would depend upon the probability. The Group
+is evaluating the requirements of the standard and its
+effect on the consolidated financial statements.
+Ind AS 116, which is effective for annual periods
+beginning on or after April 01, 2019, requires lessees
+and lessors to make more extensive disclosures
+than under Ind AS 17. The Group is evaluating the
+requirements of the standard and its effect on the
+consolidated financial statements.
+Lessor accounting under Ind AS 116 is substantially
+unchanged from today's accounting under Ind AS
+17. Lessors will continue to classify all leases using
+the same classification principle as in Ind AS 17 and
+distinguish between two types of leases: operating
+and finance leases.
+Lessees will be also required to re-measure the
+lease liability upon the occurrence of certain events
+(e.g., a change in the lease term, a change in future
+lease payments resulting from a change in an
+index or rate used to determine those payments).
+The lessee will generally recognise the amount of the
+re-measurement of the lease liability as an adjustment
+to the right-of-use asset.
+Ind AS 116 Leases has been notified on March 30,
+2019 and it replaces Ind AS 17 Leases, including
+appendices thereto. Ind AS 116 is effective for annual
+periods beginning on or after April 01, 2019. Ind AS
+116 sets out the principles for the recognition,
+measurement, presentation and disclosure of
+leases and requires lessees to account for all leases
+under a single on-balance sheet model similar to
+the accounting for finance leases under Ind AS 17.
+The standard includes two recognition exemptions
+for lessees – leases of 'low-value' assets (e.g.,
+personal computers) and short-term leases (i.e.,
+leases with a lease term of 12 months or less).
+At the commencement date of a lease, a lessee will
+recognise a liability to make lease payments (i.e., the
+lease liability) and an asset representing the right to
+use the underlying asset during the lease term (i.e.,
+the right-of-use asset). Lessees will be required to
+separately recognise the interest expense on the
+lease liability and the depreciation expense on the
+right-of-use asset.
+The Ministry of Corporate Affairs (MCA) has issued
+the Companies (Indian Accounting Standards)
+Amendment Rules, 2019 and Companies (Indian
+Accounting Standards) Second Amendment Rules,
+2019 introducing /amending the following standards:
+Ind AS 116, Leases
+Standards issued but not yet effective and not early
+adopted by the Company
+v. Recent Accounting pronouncements
+The number of equity shares and potentially dilutive
+equity shares are adjusted retrospectively for all
+periods presented for any share splits and bonus
+shares issues including for changes effected prior
+to the approval of the financial statements by the
+Board of Directors.
+Annual Report 2018-19
+The Group's net obligation in respect of other
+long term employee benefits is the amount of
+future benefit that employees have earned in
+return for their service in the current and previous
+periods. That benefit is discounted to determine its
+present value.
+Under Ind AS 109, a debt instrument can be measured
+at amortised cost or at fair value through other
+comprehensive income, provided that the contractual
+cash flows are 'solely payments of principal and
+interest on the principal amount outstanding' (the
+SPPI criterion) and the instrument is held within the
+appropriate business model for that classification.
+The amendments to Ind AS 109 clarify that a financial
+asset passes the SPPI criterion regardless of the event
+or circumstance that causes the early termination
+of the contract and irrespective of which party pays
+or receives reasonable compensation for the early
+termination of the contract.
+Short-term and Other long-term employee benefits
+Accumulated leave, which is expected to be utilised
+within the next 12 months, is treated as short-term
+employee benefit. The Company measures the
+expected cost of such absences as the additional
+amount that it expects to pay as a result of the
+unused entitlement that has accumulated at the
+reporting date.
+The Group accounts for sales returns accrual by
+recording an allowance for sales returns concurrent
+with the recognition of revenue at the time of a
+product sale. This allowance is based on the Group's
+estimate of expected sales returns. With respect
+to established products, the Group considers its
+historical experience of sales returns, levels of
+inventory in the distribution channel, estimated
+shelf life, product discontinuances, price changes
+of competitive products, and the introduction of
+competitive new products, to the extent each of
+these factors impact the Group's business and
+markets. With respect to new products introduced
+by the Group, such products have historically been
+either extensions of an existing line of product
+where the Group has historical experience or in
+therapeutic categories where established products
+exist and are sold either by the Company or the
+Company's competitors.
+Sales returns
+the existence of significant financing components,
+non-cash consideration, and consideration payable to
+the customer (if any). The Group estimates variable
+consideration at contract inception until it is highly
+probable that a significant revenue reversal in the
+amount of cumulative revenue recognised will not
+occur when the associated uncertainty with the
+variable consideration is subsequently resolved.
+In determining the transaction price, the Group
+considers the effects of variable consideration,
+Revenue from contracts with customers is recognised
+when control of the goods or services are transferred
+to the customer at an amount that reflects the
+consideration to which the Group expects to be
+entitled in exchange for those goods or services.
+The Group has generally concluded that it is the
+principal in its revenue arrangements, since it is the
+primary obligor in all of its revenue arrangement, as
+it has pricing latitude and is exposed to inventory
+and credit risks. Revenue is stated net of goods and
+service tax and net of returns, chargebacks, rebates
+and other similar allowances. These are calculated
+on the basis of historical experience and the specific
+terms in the individual contracts.
+Sale of goods
+o. Revenue
+Contingent assets are not recognised in the
+consolidated financial statements.
+(ii) Present obligations arising from past events where
+it is not probable that an outflow of resources
+will be required to settle the obligation or a
+reliable estimate of the amount of the obligation
+cannot be made.
+(i) Possible obligations which will be confirmed only
+by future events not wholly within the control of
+the Company, or
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+Contract balances
+Contract assets
+An onerous contract is considered to exist where the
+Group has a contract under which the unavoidable
+costs of meeting the obligations under the contract
+exceed the economic benefit expected to be received
+from the contract.
+Onerous contracts
+A provision for restructuring is recognised when
+the Group has a detailed formal restructuring plan
+and has raised a valid expectation in those affected
+that it will carry out the restructuring by starting
+to implement the plan or announcing its main
+features to those affected by it. The measurement
+of a restructuring provision includes only the direct
+expenditure arising from the restructuring, which are
+those amounts that are both necessarily entailed by
+the restructuring and not associated with the ongoing
+activities of the entity.
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+184 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+If the effect of the time value of money is material,
+provisions are determined by discounting the
+expected future cash flows at a pre-tax rate that
+reflects current market assessments of the time
+value of money and the risks specific to the liability.
+Where discounting is used, the increase in the
+provision due to the passage of time is recognised as
+a finance cost.
+The Group treats accumulated leave expected
+to be carried forward beyond twelve months, as
+long-term employee benefit for measurement
+purposes. Such long-term compensated absences are
+provided for based on the actuarial valuation using
+the projected unit credit method at the year-end.
+Actuarial gains/losses are immediately taken to
+the consolidated statement of profit and loss and
+are not deferred.
+Provisions are recognised when the Group has a
+present obligation (legal or constructive) as a result of
+past event, it is probable that an outflow of resources
+embodying economic benefits will be required to
+settle the obligation and a reliable estimate can
+be made of the amount of obligation. When the
+Company expects some or all of a provision to be
+reimbursed, for example, under an insurance contract,
+the reimbursement is recognised as a separate
+asset, but only when the reimbursement is certain.
+The expense relating to a provision is presented in
+the consolidated statement of profit and loss net of
+any reimbursement.
+Present obligations arising under onerous contracts
+are recognised and measured as provisions.
+A contract asset is the right to consideration in
+exchange for goods or services transferred to the
+customer. If the Group performs by transferring goods
+or services to a customer before the customer pays
+consideration or before payment is due, a contract
+asset is recognised for the earned consideration that
+is conditional.
+Restructuring
+Defined benefit plans
+discounting the estimated future cash outflows by
+reference to market yields at the end of the reporting
+period on government bonds. The currency and term
+of the government bonds shall be consistent with the
+currency and estimated term of the post-employment
+benefit obligations. The current service cost of the
+defined benefit plan, recognised in the profit or loss
+as employee benefits expense, reflects the increase
+in the defined benefit obligation resulting from
+employee service in the current year, benefit changes,
+curtailments and settlements. Past service costs are
+recognised in profit or loss in the period of a plan
+amendment. The net interest cost is calculated by
+applying the discount rate to the net balance of the
+defined benefit obligation and the fair value of plan
+assets. This cost is included in employee benefits
+expense in profit or loss. Actuarial gains and losses
+arising from experience adjustments and changes
+in actuarial assumptions are charged or credited
+to OCI in the period in which they arise and is
+reflected immediately in retained earnings and is not
+reclassified to profit or loss.
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method
+with actuarial valuations being carried out at the end
+of each annual reporting period. The present value
+of the defined benefit obligation is determined by
+The Company operates a defined benefit gratuity
+plan which requires contribution to be made to a
+separately administered fund.
+Termination benefits
+r. Employee benefits
+The Group recognises government grants only when
+there is reasonable assurance that the conditions
+attached to them will be complied with, and the
+grants will be received. When the grant relates to
+an expense item, it is recognised as income on a
+systematic basis over the periods that the related
+costs, for which it is intended to compensate, are
+expensed. When the grant relates to an asset, the
+Company deducts such grant amount from the
+carrying amount of the asset.
+q. Government grants
+Dividend income is recognised when the Group's
+right to receive the payment is established, which is
+generally when shareholders approve the dividend.
+Interest income from a financial asset is recognised
+when it is probable that the economic benefits will
+flow to the Group and the amount of income can be
+measured reliably. Interest income is accrued on a
+time basis, by reference to the principal outstanding
+and at the effective interest rate applicable, which
+is the rate that exactly discounts estimated future
+cash receipts through the expected life of the
+financial asset to that asset's net carrying amount on
+initial recognition.
+Termination benefits are recognised as an expense
+at the earlier of the date when the Group can no
+longer withdraw the offer of those benefits and when
+the entity recognises costs for a restructuring that
+is within the scope of Ind AS 37 and involves the
+payment of termination benefits.
+Royalty revenue is recognised on an accrual basis
+in accordance with the substance of the relevant
+agreement (provided that it is probable that
+economic benefits will flow to the Group and the
+amount of revenue can be measured reliably).
+Royalty arrangements that are based on production,
+sales and other measures are recognised by reference
+to the underlying arrangement.
+Royalties
+p. Dividend and interest income
+A contract liability is the obligation to transfer
+goods or services to a customer for which the
+Group has received consideration (or an amount
+of consideration is due) from the customer.
+A receivable represents the Group's right to an
+amount of consideration that is unconditional (i.e.,
+only the passage of time is required before payment
+of the consideration is due).
+Contract liabilities
+Revenue from services rendered is recognised in the
+profit or loss as the underlying services are performed.
+Upfront non-refundable payments received are
+deferred and recognised as revenue over the expected
+period over which the related services are expected
+to be performed.
+If a customer pays consideration before the Group
+transfers goods or services to the customer, a
+contract liability is recognised when the payment is
+made or the payment is due (whichever is earlier).
+Contract liabilities are recognised as revenue when
+the Group performs under the contract.
+Specialty in progress
+Trade receivables
+185
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Rendering of services
+FINANCIAL STATEMENTS > Consolidated
+Business
+Specialty in progress
+ANDA: Abbreviated new drug application | NDA: New drug application | DMF: Drug master file | CEP: Certification of Suitability
+regulatory standards.
+3
+1
+STATUTORY REPORTS > Management Discussion and Analysis
+Balance profitability and investments for future
+Increase contribution of specialty and
+.
+Focus on key markets; achieve critical mass.
+.
+Rationalise vertically integrated operations.
+• Optimise operational costs.
+Sun Pharma's business model comprises four crucial business
+features to help achieve higher efficiencies and drive sustainable
+growth. The Company is strategically poised to capitalise on the
+emerging opportunities in the global pharmaceutical sector, to
+deliver consistent long-term stakeholder value.
+Cost leadership
+complex products.
+Ensure sustained compliance with global
+focus
+Global consumer healthcare business
+17
+Portfolio of 300+ approved DMF/CEP products.
+• Achieve differentiation by focusing on technically
+•
+Backward integration provides cost competitiveness
+and supply reliability.
+API business
+4
+• Operates in 20+ countries.
+• Among the top 10 consumer healthcare companies
+in India.
+5
+FY19 sales: *34,554 Million.
+the Japanese market.
+Portfolio of long-listed products servicing
+Products include differentiated offerings for hospitals,
+injectables and generics for retail market.
+Presence across majority of markets in Western
+Europe, Canada, Japan, Australia and New Zealand.
+•
+•
+Rest of world
+6
+Enhance share of specialty business globally.
+World-class
+manufacturing sites
+Create sustainable revenue streams
+Products
+2,000+
+44
+PHARMA
+SUN
+8
+OOOOOO
+Global markets served
+100+
+Global revenue as
+on March 31, 2019
+US$ 4.1 Bn
+Sustainable value-creation model
+Sun Pharmaceutical Industries Ltd.
+16
+Annual Report 2018-19
+complex products.
+Sun Pharma enjoys a good
+track record of value-accretive
+M&A transactions.
+offered worldwide
+•
+32,000+
+US business
+Business features
+2
+FY19 sales: *53,624 Million.
+• Key focus geographies include Brazil, Mexico, Russia,
+Romania, South Africa and complementary and
+affiliated markets.
+Presence in ~100 countries across Africa, Americas,
+Asia and Eastern and Central Europe.
+Emerging markets
+Specialises in technically complex products.
+FY19 sales: *73,483 Million.
+• Leading position in high growth chronic therapies.
+• Ranked No. 1 across 11 classes of doctors.
+Indian branded generics business
+FY19 sales: *106,713 Million.
+with 450+ approved products.
+Presence in generics, specialty and branded segments
+pipeline (118 ANDAs and 8 NDAs awaiting approval).
+8th largest generics company in the US with a strong
+•
+•
+Global employee base
+Future investments directed towards
+(US$ Billion)
+Business development
+16.2
+13.8
+59
+52
+FY19
+173
+FY18
+159
+Market capitalisation as on March 31
+FY19
+39
+FY18
+33
+Adjusted earnings per share (excluding exceptional items)
+(per share)
+PHARMA
+SUN
+FY19
+18
+287
+17
+(*Billion)
+Access to the Japanese dermatology market
+7.6%
+Specialty in progress
+*EBITDA = (Revenue from contracts with customers) - (cost of material
+consumed + purchase of stock-in-trade + changes in inventories of
+finished goods, stock-in-trade and work-in-progress + employee benefits
+expense + other expenses)
+**Row includes Western Europe, Canada, Japan, Australia, New Zealand
+and other markets
+271
+238
+International
+73
+India
+27
+FY19
+Business mix
+(%)
+FY19
+414
+FY18
+383
+Property, plant and equipment and other intangible assets (at
+cost/deemed value)
+differentiated products.
+FY18
+(Billion)
+(per share)
+Book value per share
+FY19
+FY18
+(*Billion)
+(excluding exceptional items)
+Adjusted net profit after minority interests
+FY19
+FY18
+Gross sales
+(*Billion)
+Key performance indicators
+Sun Pharmaceutical Industries Ltd.
+18
+Annual Report 2018-19
+market presence.
+• Focus on access to products, technology and
+• Use acquisitions to bridge critical capability gaps.
+FY18
+261
+FY19
+FY18
+EBITDA*
+Ingredients (API) and others
+Active Pharmaceutical
+6
+Rest of world (ROW)**
+12
+Emerging Markets
+19
+FY19
+Indian Branded Generics
+26
+US Business
+37
+Ө
+(%)
+Business-wise revenue share
+FY19
+Net worth
+(Billion)
+Japan
+132
+2018
+•
+.
+⚫ China's US$ 137 Billion pharmaceutical market
+is expected to grow at 3-6% by 2023, driven by
+improving insurance access, modernisation of hospital
+systems and expansion of primary care services.
+Japan's medicine spending was at US$ 86 Billion
+in 2018; and is expected to slow through 2023,
+on account of continued uptake of generics and
+government-mandated price reductions.
+Pharmaceutical spending in the top five western
+European markets (EU5) touched US$ 178 Billion
+in 2018; and is likely to grow at a sluggish pace in
+the 2018-2023 period, as compared to that of the
+previous five years. Government-mandated price
+reductions and slower uptake of new specialty
+products will be key reasons of this sluggish growth.
+• US spending was at US$ 486 Billion in 2018, while
+pharmerging markets spending was US$ 286 Billion.
+These two regions will be key contributors to global
+pharmaceutical growth.
+Outlook and emerging trends¹,2
+1,505-1,535
+10%
+9%
+Uptake of specialty medicines will continue to rise in
+developed markets, driven by advancement of new
+and innovative targeted medicines, using immunology,
+gene therapy, monoclonal anti-bodies and other
+contemporary technologies. Share of specialty
+medicines in overall pharmaceutical spending will
+cross 50% by 2023 in most developed markets.
+20%
+Global markets
+130-160
+10%
+8%
+26%
+56%
+Rest of world
+355-385
+20%
+61%
+13%
+• Healthcare providers are exploring technology
+investments in cloud computing, artificial intelligence
+and machine learning to ramp up productivity.
+This trend is expected to gain further momentum in
+the coming years.
+Longer life expectancy: As individuals become increasingly
+health conscious and medical science continues to advance,
+life expectancy will increase. By 2040, Japan, Singapore,
+Spain and Switzerland are projected to have a life expectancy
+rate in excess of 85 years, while 59 countries, including
+China, are expected to surpass a life expectancy of 80 years
+during that period.
+7.2%
+486
+USA
+CAGR
+CAGR
+2023
+2018
+Region/Country
+2019-2023
+Growth enablers for the global pharmaceutical market1,3,4,5
+Growing and ageing population: Global population is
+projected to exceed 9.3 Billion by 2050, of which 21% will be
+accounted for by those aged 60 and above.
+2014-2018
+PHARMA
+SUN
+Sun Pharmaceutical Industries Ltd.
+12
+Annual Report 2018-19
+Growth in global pharmaceutical spending through
+2023 will primarily be driven by developed markets and
+the accelerated adoption of new innovative products.
+Spending on medicines in developed markets is estimated
+to grow at 3-6% CAGR from US$ 800 Billion in 2018 to US$
+990-1,020 Billion in 2023. The US will continue to be an
+important contributor, with its medicine spending expected
+to remain higher that of the top five European economies.
+All developed countries will show moderation in growth
+through 2023, as compared to the 2014-18 period.
+Specifically in the US, the positive impact of new specialty
+launches will be partly moderated by loss of patent
+protection on older products.
+Developed markets¹
+Greater prevalence of chronic diseases: Chronic disease
+prevalence is expected to rise to 57% by 2020 - increasing
+the demand for healthcare products and services. Emerging
+markets will account for a majority share, as population growth
+is expected to be most significant in developing nations.
+Research focus on orphan drugs: Growing research focus on
+rare disease therapies has resulted in a significant increase
+in new orphan drugs. The United States Food and Drug
+Administration (USFDA) approved 80 orphan indications in
+2017 and 90 in 2018.
+Improving purchasing power: The middle-class population
+as well as per capita income continues to expand, driving
+demand for pharmaceutical products. This expansion is likely
+to be broad based, but more pronounced in Asia, particularly
+in China and India.
+Table 3 Pharmaceutical spending of developed markets (US$ Billion)¹
+625-655
+40%
+Pharmerging markets
+3.2
+119
+Rest of the world
+5-8
+355-385
+9.3
+286
+Pharmerging markets
+3-6
+130-160
+990-1,020
+800
+Developed markets
+CAGR (%)
+(US$ Billion)
+CAGR (%)
+(US$ Billion)
+Regions
+2019-2023
+2023
+5.7
+27%
+2-5
+1,205
+990-1,020
+5%
+8%
+10%
+76%
+Developed markets
+Total
+(US$ Billion)
+(OTC) and other
+products
+brands
+Global pharmaceutical market
+brands
+Unbranded
+Over-the-counter
+Non-original
+Original
+Global medicine spending by region and product types in 2023¹
+Table 2
+3-6
+1,505-1,535
+6.3
+Spending
+2014-2018
+4-7%
+177
+↑ 7.02%
+CAGR
+2023
+↑1-4%
+CAGR
+2019-2023
+200-230
+2018
+177
+Japan
+14.7%
+CAGR
+2014-2018
+Western Europe pharmaceutical spending growth¹
+2014-2018
+Chart 3
+(US$ Billion)
+486
+(US$ Billion)
+Chart 2 US pharmaceutical spending growth¹
+The US pharmaceutical market is set to exceed US$ 600 Billion
+by 2023. The key driver of this trend will be launch of new
+specialty products which will be partly offset by patent expiries,
+growth of biosimilars and slower rate of rise in new launch
+prices. There has been significant attention given to the launch
+prices of recently introduced drugs, especially given the shift in
+innovation towards specialty, orphan and oncology areas (that
+are often costlier).
+USA
+Developed markets
+Australia
+South Korea
+3-6%
+625-655
+990-1,020
+Western Europe
+↑4-7%
+CAGR
+2019-2023
+China
+Acquired Pola Pharma in Japan
+CAGR
+CAGR
+2023
+2018
+Region/Country
+2019-2023
+2014-2018
+2018
+Table 4 Pharmaceutical spending and region-wise growth for pharmerging markets (US$ Billion)¹
+Pharmerging markets¹
+13
+STATUTORY REPORTS > Management Discussion and Analysis
+Specialty in progress
+Growth in global pharmaceutical
+spending through 2023 will primarily
+be driven by developed markets and
+the accelerated adoption of new
+innovative products. Spending on
+medicines in developed markets is
+estimated to grow at 3-6% CAGR
+from US$ 800 Billion in 2018 to
+US$ 990-1,020 Billion in 2023.
+The government of Japan in 2014 set out a policy to
+achieve a rate of 80% of prescription volume of unbranded
+generics in the non-patented market by 2021. The resulting
+savings from generics is enabling a greater shift to specialty
+medicines without an overall increase in the country's
+healthcare budget. Share of specialty spending in Japan
+is expected to rise from approximately 30% in 2018
+to 41% in 2023.
+Spending in Japan amounted to US$ 86 Billion in 2018, but
+over the next five years, spending on medicines is expected
+to continue to decline. This is largely due to the continued
+uptake of generics, despite higher spending on specialty
+products and an ageing population.
+The CAGR for the top five developed markets in Western
+Europe is likely to reduce to 1-4%, with overall spending
+expected to cross US$ 200 Billion in 2023. Government-led
+cost controls and decelerated growth in spend on new
+products will contribute to the slowing in pace vis-à-vis the
+4.7% CAGR between 2014 and 2018, that was helped by
+spending on new products (especially oncology and viral
+hepatitis treatments).
+2023
+Spending on medicines in pharmerging markets was recorded at US$ 286 Billion in 2018 and is projected to grow at 5-8% CAGR
+through 2023 to reach US$ 355-385 Billion. A key driver to that end is increasing per capita uptake of medicines with a rise in
+patients' affordability.
+EU5
+5.7%
+0-3%
+6.2%
+28
+2-5%
+40-44
+6.3%
+34
+Italy
+(-1)-2%
+37-41
+33-37
+1.5%
+France
+3-6%
+65-69
+5.0%
+53
+Germany
+1-4%
+200-230
+4.7%
+37
+800
+2-5%
+25
+13-17
+4.3%
+13
+4-7%
+19-23
+4.7%
+16
+2-5%
+27-31
+Spain
+5.0%
+Canada
+(-3)-0%
+89-93
+1.0%
+86
+Japan
+1-4%
+27-31
+5.4%
+22
+2018
+UK
+Table 1
+It is expanding its footprint among consumers and healthcare
+professionals in 100+ countries, and offers a portfolio of
+2,000+ products, globally, in a full range of dosage forms.
+This includes tablets, capsules, injectables, ointments, creams
+and liquids, nasal sprays and hormones, among others.
+Sun Pharma has 44 manufacturing sites approved by global
+health regulatory agencies-supported by a worldwide
+supply chain-and multiple research and development (R&D)
+facilities across the world, investing 6.9% of its sales in R&D.
+It has a diverse employee base of 32,000+ individuals across
+50 nationalities worldwide.
+Specialty in progress
+STATUTORY REPORTS > Management Discussion and Analysis
+Table 5
+Major acquisitions and joint ventures (JVs)
+Years
+1997
+Acquisition/JV
+Markets
+Acquired Caraco
+Sun Pharmaceutical Industries Limited including its
+subsidiaries and associates (Sun Pharma) is the fourth
+largest global specialty generic company that is ranked
+No. 1 in India and No. 8 in the US. It is the largest Indian
+pharmaceutical company in the US and among the leading
+Indian pharmaceutical companies in emerging markets.
+Sun Pharma enjoys a vertically integrated business,
+economies of scale and good talent management practices
+that enable it to deliver quality products at affordable
+prices. The Company is deepening its global footprint as a
+highly trusted manufacturer of specialty products, branded
+generics, complex and pure generics, OTC products,
+anti-retrovirals (ARVs) and APIs.
+USA
+Acquired Taro Pharmaceutical
+Industries Ltd.
+Israel
+Rationale
+Entry into the US generics market
+Enhance presence in the US generics market, especially in the
+dermatology segment
+2012
+Acquired DUSA Pharma, Inc.
+2013
+2014
+2010
+USA
+Acquired URL's generics business USA
+Acquired Pharmalucence
+WORLD OF SUN PHARMA
+Consumer healthcare providers deal with products in
+wellness, oral health, nutrition, skin health. These include
+over-the-counter (OTC) drugs. Globally, a large number of
+acquisitions, mergers and shutdowns has resulted in industry
+consolidation, with market share being concentrated within
+the top 10 firms. The Global OTC market was valued at $135
+Billion in 2018. Two top markets, the US (US$34 Billion)
+and China (US$25 Billion) accounted for ~44% of the global
+market. Vitamins, minerals & supplements and the cough,
+cold & allergy segments account for more than 50% sales of
+OTC products globally.
+↑11.2%
+CAGR
+2014-2018
+20
+20
+2018
+28-32
+↑8-11%
+CAGR
+2019-2023
+2023
+Spending on medicines in
+There is a global trend towards self-care, self-medication,
+awareness for wellness and preventive medicine, along
+with a rise in disposable income, demand for personalised
+products, acceptance of e-commerce retail and shift to OTC
+products. This trend is expected to drive the growth of the
+industry in future.
+pharmerging markets was recorded
+at US$ 286 Billion in 2018 and
+is projected to grow at 5-8%
+CAGR through 2023 to reach US$
+355-385 Billion. A key driver to
+that end is increasing per capita
+uptake of medicines with a rise in
+patients' affordability.
+14
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Spending on specialty medicines in developed markets
+accounted for US$ 336 Billion in 2018 and is estimated to
+rise to US$ 475-505 Billion in 2023. Specialty share of total
+spending across top 10 developed countries is likely to rise
+from 42% in 2018 to 50% in 2023. Almost 74% of this is
+expected to be led by the five largest specialty therapeutic
+classes: oncology, autoimmune, immunology, anti-virals
+and multiple sclerosis. In most developed markets, specialty
+spend continues to outpace that on other medicines.
+Active Pharmaceutical Ingredients (API)7
+APIs are chemicals and biologically active elements of drugs
+with a direct impact on cure, mitigation, treatment and
+prevention of diseases. The worldwide API market is likely
+to exceed US$ 225 Billion by 2024 - a 6% CAGR for the
+forecast period.
+The market has witnessed growth through the decades,
+due to an ever-increasing use of medication and biologics
+for disease management. Other drivers include increasing
+incidence of chronic ailments, growing volumes of generic
+drugs worldwide and rising technological advancements in
+API manufacturing.
+Consumer healthcare³
+Annual Report 2018-19
+Access to branded dermatology product
+Addition to the US generics portfolio
+USA
+Acquired 14 brands from
+Japan
+Entry into Japan
+Novartis
+2016
+Licensing agreement with
+Europe
+Strengthen the distribution of ILUMYA™ in Europe
+Almirall for ILUMYATM
+2016
+for psoriasis
+Acquired Biosintez
+Russia
+2016
+Acquired global rights for
+Global
+Cequa and Odomzo
+Global pharmaceutical spending and growth¹
+Access to local manufacturing capability to enhance presence in
+the Russian market
+Strengthen specialty pipeline in the ophthalmology and
+oncology space
+2016
+Distribution services agreement in India for brands Oxra and OxrametⓇ
+(brands of dapagliflozin; used for diabetes treatment)
+Strengthen branded ophthalmic portfolio in the US
+Distribution services agreement in India for brand AxcerⓇ (brand of
+ticagrelor; used for the treatment of acute coronary syndrome)
+2014
+In-licensing agreement with
+Global
+Access to sterile injectable capacity in the US, supported by
+R&D capabilities
+Strengthen the specialty product pipeline
+Merck for ILUMYA™, a biologic
+for psoriasis
+Sun Pharma-Ranbaxy merger
+Global
+15
+2015
+Distribution agreement
+India
+with AstraZeneca
+2015
+Acquisition of InSite Vision
+USA
+2016
+Distribution agreement
+India
+with AstraZeneca
+Further strengthen position as the fifth largest global specialty generics
+pharmaceutical company and the No. 1 pharmaceutical company in
+India, with strong positioning in emerging markets
+Specialty medicines refer to those used in the treatment of
+chronic, complex or rare diseases and that require advanced
+scientific research and innovation. Given their significantly
+higher purchasing power and strong healthcare insurance
+coverage, developed markets account for a significant share
+of global spending on specialty products. Specialty represents
+a small share in pharmerging markets, given the relatively
+lower purchasing power, and is expected to rise marginally
+from 13% in 2018 to 14% by 2023. Specialty is expected
+to represent more than half of newly launched medicines
+globally over the next five years. A larger use of biomarkers
+to segment and treat appropriate patients will characterise
+these launches.
+Specialty medicines¹
+2015
+Changing lifestyle and consumption patterns.
+Global spending on medicines crossed US$ 1.2 Trillion
+in 2018; and is projected to grow at a compound annual
+growth rate (CAGR) of 3-6% in the next five years, reaching
+over US$ 1.5 Trillion by 2023. Growth in the global
+pharmaceutical market will continue to be led by the US and
+pharmerging markets.
+Global pharmaceutical industry¹
+PHARMA
+SUN
+SUN
+Management Discussion and Analysis
+Sun Pharmaceutical Industries Ltd.
+10
+Annual Report 2018-19
+Chart 1
+Senior Vice-President,
+Chief Information Officer
+Head - Global Supply Chain
+CEO, Taro Pharmaceuticals
+Industries Ltd.
+Uday Baldota
+a
+Senior Vice-President, Head -
+Global Quality and Compliance
+Jila Breeze
+Business Head, Western Europe,
+Australia and New Zealand
+Hellen de Kloet
+Executive Vice-President, Head - Global
+Business Development Team
+Atanu Roy
+Kirti Ganorkar
+Global medicine spending and growth, 2016-23¹
+Spending (US$ Billion)
+1,600
+Specialty in progress
+11
+Improving healthcare awareness.
+STATUTORY REPORTS > Management Discussion and Analysis
+2016 2017 2018 2019 2020 2021 2022 2023
+Growth in Constant US$
+o of do do do do of one of of of
+8%
+10%
+→ Growth (%)
+0
+400
+600
+800
+Spending
+1,000
+While new product launches, especially specialty products,
+will be the key growth catalyst in developed markets,
+pharmerging market expansion will be driven by multiple
+factors. These factors comprise improving per capita income,
+increasing healthcare awareness, ageing population and
+rising incidence of chronic ailments. The product mix in the
+developed world will continue to shift towards specialty
+and orphan products. Emerging technologies are enabling
+healthcare providers to innovate and engage better with
+key stakeholders.
+1,200
+1,400
+Forecast
+200
+CORPORATE OVERVIEW > Leadership Team
+Sreenivas Rao
+Senior Vice-President,
+3-6%
+9.3%
+355-385
+5-8%
+India
+Russia
+Tier 3 markets
+Pharmerging markets
+140-170
+Indian pharmaceutical market¹,2
+India enjoys a key position in the global pharmaceutical
+industry. The country is the world's largest supplier of
+generics, accounting for 20% of global exports. It supplies
+over 50% of global demand for various vaccines and 40% of
+the demand for generic products in the US. The domestic
+pharmaceutical market contributes to ~2% of the global
+industry in value and ~10% in volume terms. The domestic
+pharmaceutical industry has received foreign direct
+investment (FDI) worth ~US$ 16 Billion on a cumulative
+basis, between April 2000 and June 2018.
+India's pharmaceutical spending is predicted to grow at
+8-11% CAGR in the 2019-23 period to reach a size of
+US$ 28-32 Billion. A part of this growth will depend on the
+ability of companies to align their product portfolio towards
+therapies for chronic diseases that are on the rise.
+Chart 4 India's pharmaceutical spending and growth¹
+(US$ Billion)
+Growth enablers
+•
+•
+•
+Increasing per capita income.
+Growing penetration of health insurance.
+Government thrust on improving penetration of modern
+medicines into rural areas and accelerating access of
+pharmaceutical products to the poor and low-income
+sections of the population.
+Increased incidence of chronic ailments.
+286
+7-10%
+China is the largest pharmerging market registering
+pharmaceutical spending of US$ 132 Billion in 2018; and
+is likely to reach US$ 140-170 Billion by 2023. Spending is
+driven, in part, by reforms initiated by the Chinese central
+government to accelerate insurance access to rural and urban
+residents, as well as the expansion and modernisation of the
+hospital network and primary care services.
+11.3%
+Tier 2 markets
+Brazil
+105-135
+10.7%
+91-95
+7-10%
+32
+10.8%
+39-43
+5-8%
+68
+11.2%
+28-32
+8-11%
+86
+16
+9.9%
+21-25
+20
+7-10%
+989.1
+1,006.6
+Amortisation expense
+1.2
+6,994.3
+6,691.1
+23,787.3
+(10.2)
+1,444.9
+(554.7)
+(564.9)
+303.2
+22,654.1
+4,717.2
+(352.0)
+(343.4)
+4,497.5
+18,871.2
+550.9
+541.1
+17,958.9
+912.3
+9.8
+219.7
+(8.6)
+1,133.2
+17.5
+1.2
+As at March 31, 2018
+Carrying amount
+Taken over on acquisition^
+Eliminated on disposals of assets
+29,779.6
+As at March 31, 2019
+31,224.5
+Investments in equity instruments
+40,248.8
+57,445.2
+Investments in limited liability partnership
+Tarsius Pharma Ltd
+Medinstill LLC
+Consolidation adjustments
+Unquoted, fully paid
+(Carrying amount determined using equity method of accounting)
+* in Million
+Quantity
+* in Million
+As at March 31, 2018
+As at March 31, 2019
+Quantity
+NOTE: 4 INVESTMENT IN ASSOCIATES (NON-CURRENT)
+620.4
+1,088.3
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+^ Refer note 76
+* Refer note 55
+d) The aggregate amortisation has been included under depreciation and amortisation expense in the consolidated statement of
+profit and loss.
+(c) Other intangible assets consisting of trademarks, brands acquired, research and development, designs, technical know-how, licences, non-
+compete fees and other intangible assets are available to the Group in perpetuity. The amortisable amount of intangible assets is arrived at, based
+on the management's best estimates of useful lives of such assets after due consideration as regards their expected usage, the product life cycles,
+technical and technological obsolescence, market demand for products, competition and their expected future benefits to the Group.
+(b) For details of assets pledged as security refer note 67.
+(a) Buildings include 8,620 (March 31, 2018: ₹ 8,620) towards cost of shares in a co-operative housing society and also includes * 4.5
+Million (March 31, 2018: 4.5 Million towards cost of flats not registered in the name of the Parent company but is entitled to right of use
+and occupancy.
+Footnotes:
+As at March 31, 2019
+58,533.5
+40,869.1
+191
+As at March 31, 2018
+Total
+Amortisation expense
+55,307.8
+53,892.2
+1,415.6
+14.1
+Consolidation adjustments
+As at March 31, 2018
+Eliminated on disposals of assets
+Additions
+Taken over on acquisition
+Consolidation adjustments
+As at April 01, 2017
+At cost or deemed cost
+Trademarks and
+Designs
+653.1
+Computer
+Software
+Other than internally generated
+NOTE : 3b OTHER INTANGIBLE ASSETS
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+190 Sun Pharmaceutical Industries Ltd.
+189
+91,590.3
+Trumpcard Advisors and Finvest LLP
+101.4 100,274.2
+Annual Report 2018-19
+* in Million
+667.2
+550.0
+550.0
+Consolidation adjustments
+As at April 01, 2017
+Accumulated amortisation and impairment
+(733.3)
+89,758.0
+(723.0)
+87,224.8
+2,533.2
+As at March 31, 2019
+(10.3)
+Eliminated on disposals of assets
+23,015.5
+22,251.6
+763.9
+Additions
+4.4
+2,814.9
+2,793.3
+21.6
+4.4
+Taken over on acquisition^
+64,656.5
+62,902.9
+1,753.6
+(351.9)
+(343.2)
+(8.7)
+8,483.4
+8,150.8
+332.6
+Eliminated on disposals of assets
+Generic Solar Power LLP [11,568 (March 31, 2018: 28,760)]
+38,894
+Investments in equity instruments
+Less: Impairment in value of investment
+Reanal Finomvegyszergyar Zrt. (Reanal Ltd)
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+192 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+(0.5)
+(0.5)
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+Others
+0.5
+(934.0)
+(934.0)
+0.5
+50,000
+Biotech Consortium India Limited
+Less: Impairment in value of investment
+934.0
+9,340,000
+934.0
+9,340,000
+Shares of 10 each fully paid
+Shimal Research Laboratories Limited
+Unquoted
+50,000
+In equity instruments
+In government securities
+As at March 31, 2019
+Quantity
+50.8
+50,000,000
+545.0 780.2
+990.3 831.6
+97.6
+100,000,000
+100.1
+100,000,000
+96.5
+100,000,000
+98.4
+100,000,000
+27.2
+Quoted - At fair value through other comprehensive income
+27,400,000
+27,400,000
+Bond of 1 each fully paid maturing June 23, 2019
+8.01% Government of Rajasthan UDAY 2020
+Bond of 1 each fully paid maturing June 23, 2020
+7.62% Government of Telangana UDAY 2026
+Bond of 1 each fully paid maturing March 07, 2026
+7.98% Government of Telangana UDAY 2030
+Bond of 1 each fully paid maturing March 07, 2030
+8.24% Government of Tamil Nadu UDAY 2028
+Bond of 1 each fully paid maturing March 22, 2028
+8.11% Government of Chhattisgarh SDL 2028
+27.1
+27,400,000
+7.86% Government of Rajasthan UDAY 2019
+20.2
+(168.2)
+168.2
+* in Million
+38,894
+As at March 31, 2018
+Quantity
+* in Million
+177.9
+(177.9)
+71.9
+27.1
+scPharmaceuticals Inc. [Refer note 39(p)]
+449.3
+2,167,679
+Unquoted, fully paid
+(Carrying amount determined using equity method of accounting)
+* in Million
+Quantity
+* in Million
+As at March 31, 2018
+As at March 31, 2019
+Quantity
+NOTE: 5 INVESTMENT IN JOINT VENTURES (NON-CURRENT)
+1,745.3
+867.6
+1,881.0
+2,748.6
+Investments in equity instruments
+2,163.4
+2,163.4
+2,167,679
+444.6
+0.0
+0.0
+579.0
+1,436.4
+1,999
+1,389.2
+195.2
+345,622
+1,999
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+Aggregate carrying value of unquoted investments
+(At cost, less impairment in value of investment)
+scPharmaceuticals Inc. [Refer note 39(p)]
+867.6
+Artes Biotechnology GmbH
+Aggregate carrying value of unquoted investments
+NOTE: 6 INVESTMENTS (NON-CURRENT)
+598.9
+914,107
+2,077.8
+914,107
+172.3
+1,050,000
+120.2
+1,050,000
+3,622.8
+2,868,623
+2,808.4
+2,868,623
+* in Million
+As at March 31, 2018
+Quantity
+* in Million
+As at March 31, 2019
+Quantity
+252.8
+262.0
+252.8
+252.8
+15,853
+262.0
+262.0
+15,853
+Shares of USD 0.00001 each fully paid
+Krystal biotech, Inc.
+Shares of 10 each fully paid
+Quoted - At fair value through other comprehensive income
+Amneal Pharmaceuticals Inc (formerly known as Impax
+Laboratories Inc.,) Shares of USD 0.01 each fully paid
+Krebs Biochemicals and Industries Limited
+In equity instruments
+Quoted, fully paid
+454.5
+385.0
+1.9
+7.9 1,550.0
+772.1 87,212.8
+(274.5) 1,325.9
+1,694.1
+1,886.9
+780.8
+Taken over on acquisition ^
+72.4
+73.4 1,306.7
+(46.8)
+Consolidation adjustments
+3,383.7 1,848.0 46,955.7 1,045.2
+As at March 31, 2018
+216.6
+715.1
+21.1
+137.3
+(108.4)
+(977.2)
+0.8
+212.6
+0.3
+11,247.9
+0.1
+1,535.4
+1.0
+7.7
+13.7
+733.3
+392.2
+3,586.8
+(2,192.5) (770.3)
+(29.0)
+(81.0)
+3,730.0
+1.4
+(0.9)
+(4,184.8)
+(224.7)
+892.9
+2,355.5 52,723.1
+4,151.5
+As at March 31, 2019
+(575.2)
+(72.7)
+Disposals
+300.0
+8.5
+21.6 12,059.4
+0.4
+3,149.0
+106.5
+Additions
+4,474.8
+148,764.5
+2,580.8
+16,230.6
+(4,179.2)
+(2.9)
+113.0
+34.3
+0.8
+(20.8)
+1,948.4
+2.7 1,123.0 721.4
+36.0
+54.3
+(0.2)
+434.1
+(90.7)
+Disposals
+Additions
+under
+finance ment
+Total
+taken
+under equip-
+given given Vehicles
+under under
+and
+fixtures
+ment
+taken Office
+equip-
+Vehicles
+and
+and
+Furniture Fixtures fixtures
+operating finance
+ment
+given taken
+under under
+operating finance
+lease* lease*
+ment
+Plant and
+equip-
+equip-
+Buildings Lease- Buildings
+taken hold given
+Buildings under improve- under
+finance ment on operating
+lease* building lease*
+Lease-
+hold land
+* in Million
+Office
+Furniture Furniture
+Plant and Plant and
+50,000,000
+for the year ended March 31, 2019
+equip-
+ment
+113.1
+lease*
+lease * lease*
+387.5
+Taken over on acquisition
+1,183.5
+54.3
+6.3
+11.7
+46.7
+665.9
+133,994.2
+1,697.3
+1,074.7
+0.4
+finance
+3,486.0
+772.1 75,542.9
+248.5
+(248.5)
+334.2
+1,846.2 44,835.0 1,567.4
+248.0
+1.8
+2,902.9
+61.2
+Consolidation adjustments
+As at April 01, 2017
+At cost or deemed cost
+Freehold
+land
+NOTE: 3a PROPERTY, PLANT AND EQUIPMENT
+lease*
+20.8
+519.2 98,107.4
+21.6
+8.3
+(397.4)
+2,662.8
+10,538.2
+12.9
+8.9
+214.1 288.7
+170.8
+0.4
+307.3
+0.7
+4.5
+7.7
+Eliminated on
+Impairment losses recognised
+in profit or loss
+0.4
+(176.3)
+65.2 7,531.7
+1,204.6
+1,424.9
+(0.2)
+22.7
+57,174.2
+176.4 1,168.2
+15.4
+668.5
+(1.9)
+26.4
+0.7
+0.4
+2,178.7
+20.7
+1.0
+54.4
+(155.3) 989.9
+(3,627.0)
+(69.5)
+0.8
+319.3 51,606.2
+59.9
+2.0
+1,551.3
+0.4
+482.1 46,815.3
+153.3
+3,383.7 1,588.3 35,834.2
+4,151.5 2,052.9 38,215.8
+As at March 31, 2019
+As at March 31, 2018
+Carrying amount
+(0.9)
+8.7 67,280.5
+714.3
+1.1
+0.4
+0.4 2,443.6
+20.8
+199.9 46,501.2
+833.0
+302.6 14,507.3
+As at March 31, 2019
+disposals of assets
+(4,532.5)
+(123.1) (37.7) (100.6)
+368.2 1,379.0
+63.0
+14.0 449.9
+1,458.2
+1,867.4
+28.9
+10.4
+0.3
+48.5
+568.1
+915.3
+534.6
+0.4
+1,880.7
+20.2
+230.8 33,401.4
+932.4
+41.0
+44.7 (41.0)
+182.6
+77.2
+1.5
+Taken over on acquisition
+2.2
+Consolidation adjustments
+22.5
+As at April 01, 2017
+depreciation and impairment
+Accumulated
+110.1 167,554.7
+17,269.0
+(5,534.4)
+145.0 704.4 340.5
+(169.5) (103.3) (112.6)
+1,099.3 1,358.5 2,210.6
+2.7
+0.4
+3,993.6
+236.1 10,825.9
+0.6
+16.8
+49,041.3
+834.7
+298.0
+Taken over on acquisition ^
+Depreciation expense
+Consolidation adjustments
+290.0 40,397.5
+891.9
+259.7 11,121.5
+As at March 31, 2018
+disposals of assets
+(3,378.6)
+10,281.2
+395.6
+0.9
+254.4
+(19.2)
+(70.1)
+(35.7)
+174.9
+186.7
+0.4
+272.6
+0.5
+59.2 6,854.1
+(724.1)
+685.1
+(1,734.5) (770.3)
+-
+(24.7)
+Eliminated on
+23.0 1,770.3
+Depreciation expense
+6.9
+12.6
+1.6
+51.0
+B) Reserves and surplus
+202.2
+4,795.5
+4,484.9
+1,592.3
+1,056.7
+2,079.4
+2,489.8
+700.7
+133.5
+535.2
+107.1
+105.0
+316.0
+* in Million
+164.7
+As at
+March 31, 2019
+* in Million
+914.3
+3,093.5
+914.3
+2,810.2
+(4.5)
+(9.8)
+4.5
+9.8
+896.1
+18.2
+As at
+March 31, 2018
+20.6
+2,789.6
+As at
+As at
+March 31, 2018
+Equity shares of * 1 each
+shares
+* in Million
+As at March 31, 2018
+Number of
+* in Million
+shares
+As at March 31, 2019
+Number of
+Authorised
+NOTE: 19 EQUITY SHARE CAPITAL
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+197
+March 31, 2019
+FINANCIAL STATEMENTS > Consolidated
+311.5
+23,489.5
+23,148.5
+548.4
+* includes balances of goods and service tax.
+12,739.2
+(328.8)
+328.8
+355.5
+(355.5)
+13,793.3
+6,525.6
+3,764.2
+2,701.0
+3,347.8
+1,694.8
+Specialty in progress
+5,990,000,000
+* in Million
+As at
+March 31, 2018
+March 31, 2019
+SUN
+196 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+(*) Other bank balances include deposits amounting to Nil (March 31, 2018: 115.8 Million) and margin monies amounting to 38.3 Million (March
+31, 2018: 327.7 Million) which have an original maturity of more than 12 months.
+20,040.1
+2,133.0
+356.8
+73.0
+90.7
+345.4
+Balances held as margin money or security against guarantees and other commitments (*)
+Unpaid dividend accounts
+Earmarked balances with banks
+PHARMA
+As at
+March 31, 2018
+19,610.3
+1,696.9
+As at
+March 31, 2019
+6.5
+79,253.7
+10.6
+55,137.3
+24,099.3
+As at
+March 31, 2018
+* in Million
+70,623.0
+33,540.6
+36,308.9
+764.3
+9.2
+As at
+March 31, 2019
+78,152.8
+88,842.0
+in Million
+283.3
+Notes to the Consolidated Financial Statements
+NOTE: 16 LOANS (CURRENT)
+As at
+Others
+Balances with government authorities*
+Less allowance for doubtful
+Considered doubtful
+Considered good
+Advances for supply of goods and services
+Prepaid expenses
+Export incentives receivable
+NOTE: 18 OTHER CURRENT ASSETS
+Others
+Refund due from government authorities
+for the year ended March 31, 2019
+Derivatives not designated as hedges
+Security deposits (unsecured, considered good)
+Interest accrued on investments/balances with banks
+NOTE: 17 OTHER FINANCIAL ASSETS (CURRENT)
+* Others: Loans given to various parties at prevailing market interest rate.
+Less: Allowance for credit impaired
+Loans to employees/others - credit impaired
+Unsecured, considered good
+Secured, considered good
+*
+Loans to employees/others
+Unsecured, considered good (Refer note 69)
+Loans to related parties
+Derivatives designated as hedges
+Cumulative preference shares of 100 each
+100,000
+5,990,100,000
+Specialty in progress
+Others (Refer note 61)
+Employee benefits
+NOTE : 23 PROVISIONS (NON-CURRENT)
+* includes contractual and expected milestone obligations.
+Other financial liabilities*
+Derivatives not designated as hedges
+Interest accrued
+NOTE : 22 OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+(Refer note 67 for borrowings [Non-current])
+Long-term maturities of finance lease obligations (secured) [Refer notes 55 and 67]
+Deferred payment liabilities (unsecured - at amortised cost)
+From department of biotechnology (secured)
+As at
+March 31, 2019
+From banks (secured)
+Term loans
+Effective portion of cash flow hedges - The cash flow hedging
+reserve represents the cumulative effective portion of gain or loss
+arising on changes in fair value of designated portion of hedging
+instruments entered into for cash flow hedges. The cumulative
+gain or loss arising on the changes of the fair value of the
+designated portion of the hedging instruments that are recognised
+and accumulated under the cash flow hedges reserve will be
+reclassified to profit or loss only when the hedged transaction
+affects the profit or loss, or included as a basis adjustment to the
+non-financial hedged item.
+foreign operations from their functional currencies to the Group's
+presentation currency (i.e. *) are recognised directly in the other
+comprehensive income and accumulated in foreign currency
+translation reserve. Exchange difference in the foreign currency
+translation reserve are reclassified to consolidated profit or loss on
+the disposal of the foreign operation.
+NOTE : 21 BORROWINGS (NON-CURRENT)
+Foreign currency translation reserve - Exchange differences relating
+to the translation of the results and net assets of the Group's
+Equity instrument through OCI - The Company has elected
+to recognise changes in the fair value of certain investment in
+equity instrument in other comprehensive income. This amount
+will be reclassified to retained earnings on derecognition of
+equity instrument.
+Debt instrument through OCI - This represents the cumulative
+gain and loss arising on fair valuation of debt instruments
+measured through other comprehensive income. This amount
+will be reclassified to profit or loss account on derecognition of
+debt instrument.
+under the Companies Act, 2013. In compliance with local laws
+of overseas subsidiaries, the reserve has been transferred from
+retained earnings.
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+From banks (unsecured)
+198 Sun Pharmaceutical Industries Ltd.
+* in Million
+As at
+March 31, 2018
+15,538.7
+1,035.3
+Notes to the Consolidated Financial Statements
+4,044.6
+4,303.9
+1,825.6
+1,945.6
+2,219.0
+2,358.3
+As at
+March 31, 2018
+* in Million
+As at
+March 31, 2019
+316.5
+30.6
+14,127.7
+307.4
+9.1
+10.2
+As at
+March 31, 2018
+March 31, 2019
+As at
+* in Million
+17,720.9
+15,226.1
+5.3
+3.7
+108.2
+1,033.4
+97.3
+997.4
+20.4
+Annual Report 2018-19
+General reserve: The reserve arises on transfer portion of the
+net profit pursuant to the earlier provisions of Companies Act,
+1956. Mandatory transfer to general reserve is not required
+Legal reserve - The reserve has been created by an overseas
+subsidiary in compliance with requirements of local laws.
+Capital redemption reserve
+Amalgamation reserve
+Share options outstanding account
+Debenture redemption reserve
+Securities premium
+Capital reserve
+A) Share application money pending allotment
+As at
+March 31, 2018
+in Million
+As at
+March 31, 2019
+NOTE : 20 OTHER EQUITY
+2,399.3
+Legal reserve
+2,399,323,180
+2,399,334,970
+2,399.3
+2,399.3 2,399,323,180
+2,399,334,970
+Equity shares of 1 each (Refer note 42)
+Issued, subscribed and fully paid up
+6,000.0
+5,990,100,000
+5,990.0
+10.0
+100,000
+5,990,000,000
+5,990.0
+10.0
+6,000.0
+2,399.3
+General reserve
+Retained earnings
+C) Items of other comprehensive income (OCI)
+Capital redemption reserve - The Company has recognised capital
+redemption reserve on buyback of equity shares from its retained
+earnings. The amount in capital redemption reserve is equal to
+nominal amount of the equity shares bought back.
+Amalgamation reserve - The reserve was created pursuant to
+scheme of amalgamation in earlier years.
+Share options outstanding account - The fair value of the equity
+settled share based payment transactions is recognised to share
+options outstanding account.
+(29.5)
+380,741.8
+336.6
+411,691.3
+10,120.1
+24,936.7
+(93.9)
+1,648.6
+(11.2)
+1,632.9
+35,578.0
+319,777.0
+333,301.9
+35,621.0
+3.6
+7.5
+7.5
+207.5
+43.8
+43.8
+507.5
+11,929.1
+1,250.0
+3,681.7
+11,932.9
+Debenture redemption reserve - The Company is required to
+create a debenture redemption reserve out of the profits which are
+available for payment of dividend. This reserve has been transferred
+to retained earning on redemption of debentures.
+Securities premium - The amount received in excess of face value
+of the equity shares is recognised in securities premium. In case of
+equity-settled share based payment transactions, the difference
+between fair value on grant date and nominal value of share is
+accounted as securities premium. It is utilised in accordance with the
+provisions of the Companies Act, 2013.
+Capital reserve - During amalgamation / merger / acquisition, the
+excess of net assets taken, over the consideration paid, if any, is
+treated as capital reserve.
+Nature and purpose of each reserve
+Refer statement of changes in equity for detailed movement in other equity balances
+Effective portion of cash flow hedges
+Equity instrument through other comprehensive income
+Foreign currency translation reserve
+Debt instrument through other comprehensive income
+(3,142.9)
+200,000,000
+(2,246.1)
+91,088.1
+As at
+* includes amount paid under protest
+Other assets
+Balances with government authorities*
+Prepaid expenses
+Capital advances
+NOTE: 10 OTHER NON-CURRENT ASSETS
+* includes amount paid under protest
+Advance income tax (net of provisions)*
+NOTE : 9 INCOME TAX ASSET (NET) [NON-CURRENT]
+# includes receivable towards sale of manufacturing facility
+Derivatives not designated as hedges
+Others#
+March 31, 2019
+Derivatives designated as hedges
+Margin money/ security against guarantees/ commitments
+Deposits
+NOTE : 8 OTHER FINANCIAL ASSETS (NON-CURRENT)
+* Others: Loans given to various parties at prevailing market interest rate.
+Unsecured, considered good
+Secured, considered good
+Loans to employees/others *
+NOTE : 7 LOANS (NON-CURRENT)
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+193
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+Security deposits - unsecured, considered good
+*includes investment in various small denomination U.S Treasuries, brokered cash deposits and commercial papers
+* in Million
+As at
+March 31, 2018
+167.3
+* in Million
+As at
+March 31, 2019
+31,896.6
+31,896.6
+As at
+March 31, 2018
+* in Million
+32,660.9
+32,660.9
+As at
+March 31, 2019
+1,049.2
+787.7
+309.4
+82.8
+3.1
+120.7
+653.8
+638.6
+2.2
+2.6
+1.0
+1.4
+As at
+March 31, 2018
+March 31, 2019
+As at
+* in Million
+10.2
+22,414.5
+22,424.7
+170.4
+24.4
+As at
+March 31, 2018
+1,102.7
+6,429.5
+163,131
+Indian Railway Finance Corporation Ltd - 8/8.15% Bonds of
+152.2
+142,393
+149.0
+142,393
+Power Finance Corporation Ltd (Series I) -8.2% Bonds of * 1,000
+each fully paid maturing on February 01, 2022
+66.1
+61,809
+64.6
+61,809
+National Highways Authority of India - 8.2% Bonds of ₹ 1,000 each
+fully paid maturing on January 25, 2022
+170.0
+253.5
+Housing Development Finance Corporation Ltd - 9.9% Non-
+convertible Debentures of 1,000,000 each fully paid matured
+during the year
+Quoted - At fair value through other comprehensive income
+3,310.2
+0.0
+3,286.4
+0.0
+In debentures/bonds
+National savings certificates [10,000 (March 31, 2018: 10,000)]
+Quoted - At fair value through other comprehensive income
+Others *
+Bond of 1 each fully paid maturing February 21, 2028
+Unquoted
+51.4
+50,000,000
+Bond of 1 each fully paid maturing January 31, 2028
+8.29% Government of West Bengal SDL 2028
+250
+1,112.4
+163,131
+1,000 each fully paid maturing on February 23, 2022
+8,493.4
+Aggregate amount of unquoted investments before impairment
+Aggregate amount of impairment in value of investments
+22,194.3
+29,711.7
+Aggregate amount of quoted investments at market value
+22,194.3
+29,711.7
+Aggregate book value (carrying value) of quoted investments
+27,521.1
+37,092.7
+5,306.6
+7,309.1
+173.5
+Other investments - Unquoted
+700,000
+661.4
+11,340.5
+1,067.4
+16,000,000
+10,000,000
+712.7
+507.0
+700,000
+State Bank of India 4.875%
+17,686.6
+1,149.7
+16,000,000
+10,000,000
+NTPC 4.375% Regd. Euro Medium Term Notes
+ONGC Videsh 4.625% Regd. Notes
+Investment in Bonds (various small value investments)
+476.1
+4,430.3
+3,894.8
+70.2
+1,116.8
+91.0
+1,122.1
+195
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+5,621.2
+@includes investment in various small denomination U.S Treasuries, brokered cash deposits, money market funds and commercial papers
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+40,906.2
+39,507.2
+2.3
+Unquoted
+5177.2
+In equity instruments
+Notes to the Consolidated Financial Statements
+Unquoted
+13,612.4
+14,480.8
+Investment in bonds (various small denomination investments)
+69.0
+1,000,000
+Oil India Limited
+13.8
+483.0
+7,000,000
+JSW Steel Limited
+200,000
+22,087.4
+26.9
+In mutual funds *
+27,400,000
+for the year ended March 31, 2019
+NOTE: 13 TRADE RECEIVABLES
+3,142.9
+2,246.1
+78,152.8
+As at
+March 31, 2018
+* in Million
+88,842.0
+March 31, 2019
+As at
+5,179.5
+35,726.7
+35,726.7
+* in Million
+As at
+March 31, 2018
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+Aggregate amount of unquoted investments before impairment
+Aggregate amount of impairment in value of investments
+33,886.0
+33,886.0
+5,621.2
+As at
+Deposit accounts (*)
+NOTE: 15 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 14 ABOVE
+Cash on hand
+Cheques, drafts on hand
+In deposit accounts with original maturity less than 3 months
+In current accounts
+Balance with banks
+NOTE: 14 CASH AND CASH EQUIVALENTS
+Less: Allowance for credit impaired (expected credit loss allowance)
+Credit impaired
+Unsecured, considered good
+March 31, 2019
+18,812.5
+26.9
+27,400,000
+27,837.8
+261.1
+307.6
+24,360.1
+27,530.2
+* in Million
+As at
+March 31, 2018
+As at
+March 31, 2019
+Goods in transit
+Stores and spares
+Goods in transit
+Stock-in-trade
+Finished goods
+24,621.2
+Work-in-progress
+Lower of cost and net realisable value
+NOTE: 11 INVENTORIES
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+194 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+5,660.1
+5,083.5
+16.7
+1.7
+Raw materials and packing materials
+Goods in transit
+18,337.1
+14,514.2
+24,430.7
+* in Million
+As at March 31, 2018
+Quantity
+* in Million
+As at March 31, 2019
+Quantity
+ONGC Videsh Limited
+Quoted (Fair value through other comprehensive income)
+In bonds/debentures
+Bond of 1 each fully paid maturing June 23, 2019
+Investment in others @
+Quoted (Fair value through other comprehensive income)
+7.75% Government of Rajasthan UDAY 2018
+Bond of 1 each fully paid matured on June 23, 2018
+7.86% Government of Rajasthan UDAY 2019
+In Government securities
+NOTE : 12 INVESTMENTS (CURRENT)
+(ii) The cost of inventories recognised as an expense is disclosed in notes 33, 34 and 37 and as purchases of stock-in-trade in the consolidated
+statement of profit and loss.
+(i) Inventory write downs are accounted, considering the nature of inventory, estimated shelf life, planned product discontinuances, price changes,
+ageing of inventory and introduction of competitive new products. Write downs of inventories amounted to 16,690.2 Million (March 31, 2018:
+* 14,291.3 Million). The changes in write downs are recognised as an expense in the consolidated statement of profit and loss.
+68,806.9
+78,859.8
+999.9
+1,019.1
+0.9
+999.0
+1,019.1
+6,242.6
+7,235.1
+25.5
+83.8
+6,217.1
+7,151.3
+22,429.0
+81,295.7
+FINANCIAL STATEMENTS > Consolidated
+1,212.2
+21,811.0
+17.5
+Deferred revenue
+Advance from customers
+Statutory remittances
+NOTE : 28 OTHER CURRENT LIABILITIES
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+200 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+* includes claims, recall charges, contractual and expected milestone obligations, trade and other commitments.
+13,377.2
+10,273.2
+2,148.5
+1,848.0
+Others*
+143.7
+123.9
+35.8
+Others
+NOTE : 29 PROVISIONS (CURRENT)
+Employee benefits
+Others (Refer note 61)
+51,096.6
+48,339.8
+25,043.4
+29,323.3
+2,756.8
+As at
+March 31, 2018
+* in Million
+4,279.9
+As at
+March 31, 2019
+5,382.1
+267.5
+145.1
+4,887.5
+301.1
+* in Million
+As at
+March 31, 2018
+7,344.0
+95.5
+693.7
+2,206.5
+4,348.3
+March 31, 2019
+As at
+NOTE : 30 CURRENT TAX LIABILITIES (NET)
+48.4
+4,141.2
+1,221.9
+151.3
+79,797.0
+83,707.6
+39,104.5
+16,877.7
+16,881.9
+36,079.1
+23,810.6
+30,750.8
+As at
+March 31, 2018
+* in Million
+* in Million
+266.0
+145.3
+124.8
+5,712.5
+120.7
+5,587.7
+March 31, 2018
+* in Million
+As at
+As at
+March 31, 2019
+NOTE : 27 OTHER FINANCIAL LIABILITIES (CURRENT)
+As at
+March 31, 2019
+Provision for income tax [Net of advance income tax]
+As at
+March 31, 2019
+As at
+March 31, 2018
+86.4
+93.9
+126.6
+335.5
+381.5
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+41,478.7
+41,478.7
+Interest accrued
+349.0
+6,106.3
+5,860.9
+As at
+March 31, 2018
+in Million
+As at
+March 31, 2019
+Current maturities of finance lease obligations (Refer notes 55 and 67)
+Current maturities of long-term debt (Refer note 67)
+47,662.0
+47,662.0
+228.5
+Trade payables
+As at
+1,269.4
+1,269.4
+Inventories at the beginning of the year
+Raw materials and packing materials
+NOTE: 33 COST OF MATERIALS CONSUMED
+8,387.6
+10,254.9
+598.7
+1,303.2
+296.1
+173.1
+258.6
+156.1
+170.6
+64.5
+31.3
+28.3
+1,236.6
+1,433.6
+* in Million
+Year ended
+March 31, 2018
+March 31, 2019
+Inventories acquired on acquisition (Refer note 76)
+Purchases during the year
+Foreign currency translation difference
+Inventories at the end of the year
+Year ended
+March 31, 2018
+* in Million
+(50,002.9)
+1,364.2
+43,185.8
+1,121.8
+Year ended
+March 31, 2019
+Inventories at the end of the year
+Foreign currency translation difference
+Inventories acquired on acquisition (Refer note 76)
+Year ended
+Inventories at the beginning of the year
+44,626.0
+57,827.0
+(24,621.2)
+91.5
+47,327.2
+24,621.2
+340.6
+60,339.9
+363.1
+(27,837.8)
+Year ended
+March 31, 2018
+* in Million
+Year ended
+March 31, 2019
+NOTE: 34 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+Miscellaneous income
+Lease rental and hire charges
+Insurance claims
+1,546.4
+Investments in debt instruments at fair value through other comprehensive income
+1,411.5
+Loans at amortised cost
+1,399.0
+1,486.1
+Bank deposits at amortised cost
+Interest income on:
+* in Million
+Year ended
+March 31, 2018
+553.9
+Year ended
+March 31, 2019
+260,659.4
+4,235.2
+264,894.6
+Year ended
+March 31, 2018
+* in Million
+286,862.8
+3,796.3
+290,659.1
+Year ended
+March 31, 2019
+Revenue from contracts with customers (Refer notes 54, 64, 71 and 77)
+Other operating revenues
+NOTE: 31 REVENUE FROM OPERATIONS
+1,328.3
+1,328.3
+* in Million
+As at
+March 31, 2018
+NOTE: 32 OTHER INCOME
+March 31, 2019
+Other financial assets carried at amortised cost
+921.3
+Net gain on disposal of property, plant and equipment and other intangible assets
+Sundry balances written back, net
+Net gain arising on financial assets measured at fair value through profit or loss
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+201
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+(7.5)
+(0.1)
+Net gain/(loss) on sale of financial assets measured at fair value through other comprehensive income
+1,555.4
+234.0
+Net gain on sale of financial assets measured at fair value through profit or loss
+371.6
+223.8
+Dividend income on investments
+5,197.6
+6,692.1
+1,402.0
+692.7
+Others (includes interest on income tax refund)
+180.3
+NOTE : 26 TRADE PAYABLES
+(Refer note 68 for borrowings [current])
+Commercial paper (unsecured)
+19.99%
+United States of America
+19.99%
+19.99%
+United States of America
+19.99%
+19.99%
+United States of America
+19.99%
+19.99%
+United States of America
+40.55%
+40.55%
+India
+39.41%
+39.41%
+India
+36.90%
+36.90%
+19.99%
+130 Medinstill Development LLC
+United States of America
+19.99%
+Voting power
+b Following are the details of the Group's holding in Taro:
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+207
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+19.99%
+19.99%
+India
+United States of America
+19.99%
+19.99%
+United States of America
+132 Intact Pharmaceuticals LLC
+19.99%
+19.99%
+United States of America
+131 ALPS LLC
+19.99%
+133 Intact Media LLC (Formerly known as Intact Skin Care LLC)
+(Refer note g)
+India
+18.33%
+45.00%
+45.00%
+57.56%
+(Refer note h)
+38.21%
+(Refer note h)
+(Refer note h)
+57.50%
+100.00%
+100.00%
+38.21%
+(Refer note h)
+57.56%
+(Refer note h)
+57.50%
+(Refer note h)
+United States of America
+100.00%
+India
+Japan
+Brazil
+United States of America
+Nigeria
+United States of America
+India
+Russia
+Switzerland
+100.00%
+Germany
+Beneficial ownership
+(Refer note w)
+(Refer note x)
+Israel
+129 Dr. Py Institute LLC
+128 HRE III LLC
+127 HRE II LLC
+126 HRE LLC
+Name of Subsidiary of Associates
+123 Composite Power Generation LLP
+124 Vintage Power Generation LLP
+125 Vento Power Generation LLP
+122 Zenotech Laboratories Limited
+121 Tarsius Pharma Ltd.
+40.61%
+United States of America
+40.61%
+120 Trumpcard Advisors and Finvest LLP
+(Refer note p)
+11.69%
+United States of America
+28.76%
+28.76%
+19.99%
+19.99%
+United States of America
+India
+India
+C
+In respect of entities at Sr. Nos. 4 to 7, 45, 86, 102,
+103, 104, 105, 107, 112, 114, 117, 121 and from
+126 to 133 the reporting date is as of December 31,
+2018 and different from the reporting date of the
+Parent Company.
+d In respect of entities at Sr. No. 45, 112, 113 and 121
+have been acquired or incorporated during the year
+ended March 31, 2019.
+130.5
+23.3
+59,274.1
+122.5
+2,290.4
+58,861.8
+118.9
+1,939.0
+The Company and/or its subsidiaries are involved in
+various legal proceedings including product liability,
+contracts, employment claims, anti-trust and other
+regulatory matters relating to conduct of its business.
+Some of the key matters are discussed below. Most of
+the legal proceedings involve complex issues, which are
+specific to the case and don't have precedents and hence
+for a majority of these claims, it is not possible to make
+a reasonable estimate of the expected financial effect,
+if any, that will result from ultimate resolution of the
+proceedings. This is due to a number of factors, including:
+the stage of the proceedings and the overall length and
+the discovery process; the entitlement of the parties to
+an action to appeal a decision; the extent of the claims,
+including the size of any potential class, particularly
+when damages are not specified or are indeterminate;
+the possible need for further legal proceedings to
+III) Legal proceedings:
+Provident fund judgement by Hon'ble Supreme Court of India
+(SC) dated February 28, 2019 is being analysed by the Group
+for its Indian subsidiaries. The Group has made a provision on
+prospective basis from the date of the SC order. The Group
+will update its provision, on receiving further clarity.
+Other matters - state electricity board, Punjab Land Preservation Act related matters etc.
+Note: includes, interest till the date of demand, wherever applicable.
+Fine imposed for anti-competitive settlement agreement by European Commission
+Octroi demand on account of rate difference
+130.5
+Demand by JDGFT for import duty with respect to import alleged to be in excess of entitlement as
+per the advanced licence scheme
+ESIC contribution on account of applicability
+Environment cess
+Excise duty / service tax on account of valuation / cenvat credit
+Sales tax on account of rebate / classification
+Income tax on account of disallowances / additions
+855.4
+806.4
+* in Million
+As at
+March 31, 2018
+As at
+March 31, 2019
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit,
+enjoyed by the Group
+Liabilities disputed - appeals filed with respect to:
+3,488.2
+17.4
+From banks (unsecured)
+Other loans
+From banks (unsecured)
+Loans repayable on demand
+NOTE : 25 BORROWINGS (CURRENT)
+Others
+Deferred revenue
+NOTE : 24 OTHER NON-CURRENT LIABILITIES
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+3,488.2
+199
+Specialty in progress
+Beginning in 2016, subsidiaries in United States of
+America (US subsidiaries) separately received a grand
+jury subpoena from the United States Department
+of Justice, Antitrust Division, seeking documents
+relating to corporate and employee records, generic
+pharmaceutical products and pricing, communications
+with competitors and others regarding the sale of generic
+Antitrust - Gx Drug Price Fixing:
+establish the appropriate amount of damages, if any; the
+settlement posture of the other parties to the litigation
+and any other factors that may have a material effect
+on the litigation. The Company makes its assessment
+of likely outcome, based on the views of internal legal
+counsel and in consultation with external legal counsel
+representing the Company. The Company also believes
+that disclosure of the amount sought by plaintiffs,
+would not be meaningful because historical evidence
+indicates that the amounts settled (if any) are significantly
+different than those claimed by plaintiff's. Some of the
+legal claims against the Company, if decided against
+the Company may result into significant impact on its
+results of operations of a given period during which the
+claim is settled.
+171.0
+77.4
+89.3
+171.0
+830.7
+799.5
+FINANCIAL STATEMENTS > Consolidated
+45,163.0
+II)
+1)
+r
+q With effect from March 25, 2019 Be-Tabs Investments
+(Pty) Ltd has been dissolved.
+p scPharmaceuticals Inc. was treated as associate
+till March 31, 2018 and now being classified and
+measured as investment at fair value through other
+comprehensive income.
+o During the year 2016-17, Solrex Pharmaceuticals
+Company, a partnership firm was converted into company
+which is known as Sun Pharma Medisales Private Limited.
+The Board of Directors of the Company at their meeting
+held on November 10, 2016 and the shareholders and
+unsecured creditors of the Company at their respective
+meetings held on June 20, 2017 approved the proposed
+scheme of arrangement u/s 230 to 232 of the Companies
+Act, 2013 for amalgamation of Sun Pharma Medisales
+Private Limited, Ranbaxy Drugs Limited, Gufic Pharma
+Limited and Vidyut Investments Limited into the
+Company with effect from April 01, 2017, the appointed
+date. On completion of all the formalities of the merger of
+the above companies with the Company, the said merger
+became effective on September 08, 2017.
+With effect from April 01, 2018 Taro Pharmaceuticals
+Canada, Ltd. has been merged with Taro
+Pharmaceuticals Inc.
+n
+m With effect from April 01, 2018 Ranbaxy GmbH has been
+merged with Basics GmbH.
+76.54%
+84.36%
+With effect from March 04, 2019 Sun Pharmaceuticals
+Italia S.R.L. has been dissolved.
+83.21%
+74.82%
+March 31, 2019
+With effect from May 20, 2018 Sun Pharmaceuticals UK
+Limited has been dissolved.
+i
+h Books of accounts and other related records/documents
+of the overseas subsidiaries of the Zenotech Laboratories
+Limited were missing and due to non-availability of those
+records/information, Zenotech Laboratories Limited is
+unable to prepare consolidated accounts.
+g With effect from July 27, 2017 Zenotech
+Laboratories Limited has ceased to be an associate
+and has become a subsidiary of Sun Pharmaceutical
+Industries Limited.
+With effect from September 21, 2018 Taro
+Pharmaceuticals (UK) Limited has been dissolved.
+Foundation for Disease Elimination and Control of
+India (FDEC), a wholly owned subsidiary incorporated
+in India on September 21, 2016 by the Company
+as part of its Corporate Social Responsibility (CSR)
+initiative. FDEC has entered into an MOU with Indian
+Council of Medical Research (ICMR) and Madhya
+Pradesh State Government to undertake the Mandla
+Malaria Elimination Demonstration Project with a goal
+to eliminate Malaria in the state. FDEC is a Section 8
+company not considered for consolidation since it can
+apply its income for charitable purposes only and can
+raise funds/contribution independently.
+f
+e
+March 31, 2018
+Claims against the Group not acknowledged as debts
+S
+t
+A) Contingent liabilities
+NOTE: 40 CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
+y Significant Accounting Policies and other Notes to these Consolidated Financial Statements are intended to serve as
+a means of informative disclosure and a guide for better understanding of the consolidated position of the Group.
+Recognising this purpose, the Group has disclosed only such policies and notes from the individual financial statements
+which fairly represent the needed disclosures. Lack of homogeneity and other similar considerations made it desirable to
+exclude some of them, which in the opinion of the management, could be better viewed when referred from the individual
+financial statements.
+× With effect from December 21, 2017 S & I Ophthalmic LLC has been dissolved.
+w With effect from June 19, 2017 MSD - Sun LLC is liquidated.
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+Taro Pharmaceutical India Private Limited has been
+liquidated on April 04, 2017.
+208 Sun Pharmaceutical Industries Ltd.
+With effect from April 01, 2017 vide certificate dated
+August 09, 2017 Ocular Technologies SARL has been
+merged with Sun Pharma Switzerland Limited.
+u With effect from April 25, 2017 Insite Vision Ltd.
+has been dissolved.
+With effect from September 25, 2018 Alkaloida Sweden
+AB has been sold.
+|
+V
+k With effect from August 22, 2018 Ranbaxy Europe
+Limited has been dissolved.
+With effect from April 19, 2018 Taro Pharmaceuticals
+Ireland Ltd. has been dissolved.
+j
+With effect from August 01, 2017, Ranbaxy
+Pharmaceuticals, Inc. and Ranbaxy Laboratories,
+Inc. have been merged with Sun Pharmaceutical
+Industries Inc.
+Annual Report 2018-19
+329.8
+(43,185.8)
+NOTE: 35 EMPLOYEE BENEFITS EXPENSE
+(4,331.1)
+France
+16 Ranbaxy Pharmacie Generiques
+100.00%
+100.00%
+India
+15 Softdeal Trading Company Private Limited
+100.00%
+100.00%
+Mauritius
+14 Sun Pharma Holdings
+100.00%
+100.00%
+India
+13 Skisen Labs Private Limited
+100.00%
+100.00%
+India
+Realstone Multitrade Private Limited
+12
+100.00%
+100.00%
+17 Sun Pharma (Netherlands) B.V. (Formerly known as Ranbaxy
+Netherlands
+57.56%
+(Refer note h)
+India
+19 Zenotech Laboratories Limited
+March 31, 2019
+Proportion of ownership interest
+for the year ended
+Country of Incorporation
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+100.00%
+SUN
+Annual Report 2018-19
+(Refer note e)
+100.00%
+100.00%
+(Refer note e)
+India
+18 Foundation for Disease Elimination and Control of India
+(Netherlands) B.V.)
+100.00%
+100.00%
+204 Sun Pharmaceutical Industries Ltd.
+100.00%
+India
+11 Neetnav Real Estate Private Limited
+100.00%
+100.00%
+Mexico
+SPIL De Mexico S.A. DE C.V.
+5
+75.00%
+75.00%
+Mexico
+Sun Pharma De Mexico S.A. DE C.V.
+6
+4
+100.00%
+Brazil
+Sun Farmaceutica do Brasil Ltda.
+3
+72.50%
+72.50%
+Bangladesh
+Sun Pharmaceutical (Bangladesh) Limited
+2
+100.00%
+March 31, 2018
+57.56%
+(Refer note g
+& h)
+Sun Pharmaceutical Peru S.A.C.
+99.33%
+100.00%
+100.00%
+India
+10 Faststone Mercantile Company Private Limited
+100.00%
+100.00%
+India
+Sun Pharma Laboratories Limited
+9
+Peru
+100.00%
+Venezuela
+Sun Pharma De Venezuela, C.A.
+8
+100.00%
+100.00%
+Russia
+OOO "Sun Pharmaceutical Industries" Limited
+7
+99.33%
+100.00%
+20 Ranbaxy Drugs Limited
+21 Vidyut Investments Limited
+22 Gufic Pharma Limited
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+Canada
+South Africa
+United Arab Emirates
+100.00%
+Germany
+France
+Netherlands
+Israel
+Australia
+(Refer note i)
+(Refer note i)
+100.00%
+United Kingdom
+99.99%
+99.99%
+Italy
+Hungary
+(Refer note r)
+100.00%
+100.00%
+100.00%
+India
+100.00%
+100.00%
+United Arab Emirates
+100.00%
+100.00%
+South Korea
+100.00%
+100.00%
+Philippines
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+United States of America
+30 Sun Pharmaceuticals UK Limited
+28 The Taro Development Corporation
+29 Alkaloida Chemical Company Zrt.
+Chattem Chemicals Inc.
+27
+26 Ranbaxy Nigeria Limited
+Ranbaxy (Malaysia) SDN. BHD.
+Caraco Pharmaceuticals Private Limited
+25
+Sun Pharmaceutical Industries, Inc.
+31 Sun Pharmaceutical Industries (Australia) Pty Limited
+24
+(Refer note o)
+(Refer note o)
+(Refer note o)
+India
+India
+India
+23 Sun Pharma Medisales Private Limited
+(Refer note o)
+India
+Indirect Subsidiaries
+100.00%
+32 Aditya Acquisition Company Ltd.
+34 Sun Pharmaceuticals Italia S.R.L.
+100.00%
+100.00%
+United States of America
+85.31%
+86.16%
+90.74%
+95.67%
+100.00%
+100.00%
+33 Sun Pharmaceutical Industries (Europe) B.V.
+United States of America
+Malaysia
+Nigeria
+44 Sun Pharma Japan Ltd.
+42 Sun Global Development FZE
+43
+41 Sun Pharmaceuticals Korea Ltd.
+40 Sun Pharma Philippines, Inc.
+39 Sun Global Canada Pty. Ltd.
+38 Sun Pharmaceuticals SA (Pty) Ltd
+37 Sun Pharma Global FZE
+36 Sun Pharmaceuticals France
+35 Sun Pharmaceuticals Germany GmbH
+45 Pola Pharma Inc.
+85.10%
+100.00%
+Green Eco Development Centre Limited
+13,661.6
+19,939.6
+1,312.9
+1,492.6
+3,237.2
+3,090.4
+1,120.8
+1,327.6
+5,599.7
+6,136.0
+6,499.4
+6,671.4
+7,511.5
+7,026.5
+Travelling and conveyance
+Printing and stationery
+Repairs and maintenance
+Commission on sale
+Selling and distribution
+1,117.4
+1,350.0
+5,149.2
+4,263.1
+Loss on sale/write off of property, plant and equipment and other intangible assets, net
+254.8
+238.9
+Donations
+16,153.1
+14,372.7
+Professional, legal and consultancy
+1,095.9
+(339.4)
+Insurance
+Provision/write off/(reversal) for doubtful trade receivables/advances
+838.2
+Communication
+3,633.9
+5,154.3
+Freight outward and handling charges
+5,190.2
+5,426.1
+612.3
+483.8
+801.9
+Rates and taxes
+Rent
+Power and fuel
+PHARMA
+SUN
+202 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+* includes gratuity expense of 372.8 Million (March 31, 2018: 450.4 Million)
+53,670.5
+59,670.9
+(1.0)
+2,684.9
+3,026.8
+Notes to the Consolidated Financial Statements
+Staff welfare expenses
+3,903.7
+47,082.9
+Year ended
+March 31, 2018
+in Million
+52,699.4
+3,944.7
+Year ended
+March 31, 2019
+Contribution to provident and other funds*
+Salaries, wages and bonus
+2,307.0
+Share based payments to employees
+693.9
+for the year ended March 31, 2019
+Interest expense for financial liabilities carried at amortised cost
+Interest expense others
+Conversion and other manufacturing charges
+Consumption of materials, stores and spare parts
+* in Million
+Year ended
+March 31, 2018
+Year ended
+March 31, 2019
+5,175.7
+265.8
+660.6
+21.5
+4,227.8
+NOTE: 36 FINANCE COSTS
+March 31, 2018
+* in Million
+46.7
+5,552.5
+300.0
+0.6
+5,205.2
+March 31, 2019
+Year ended
+NOTE: 37 OTHER EXPENSES
+Exchange differences regarded as an adjustment to borrowing costs
+Unwinding of discounts on provisions
+Year ended
+232.9
+Net (gain) / loss on foreign currency transactions
+932.0
+1,153.8
+Miscellaneous expenses
+Loss on sale/write off of property, plant and equipment and other intangible assets, net
+6,787.5
+5,579.2
+Professional, legal and consultancy
+39.4
+58.4
+Communication
+4.8
+2,206.4
+182.6
+Travelling and conveyance
+41.0
+46.9
+524.5
+507.9
+15.2
+57.1
+89.1
+104.6
+159.3
+349.6
+19,128.7
+Less:
+1
+Direct Subsidiaries
+Sun Pharmaceutical Industries Limited
+March 31, 2018
+March 31, 2019
+for the year ended
+Country of Incorporation
+Parent Company
+Proportion of ownership interest
+20,669.4
+19,057.1
+20,520.9
+148.5
+71.6
+145.7
+49.9
+Receipts from research activities
+2.8
+21.7
+Miscellaneous income
+NOTE: 39 a) List of entities included in the Consolidated Financial Statements is as under:
+India
+956.4
+334.5
+203
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+80,896.0
+89,222.6
+8,775.7
+9,197.9
+26.7
+12.9
+Notes to the Consolidated Financial Statements
+Impairment of property, plant and equipment, goodwill and other intangible assets
+Miscellaneous expenses
+Impairment in value of investments, net
+196.1
+260.6
+Payment to auditors (net of input credit, wherever applicable)
+(729.7)
+(Decrease)/increase of excise duty on inventories
+739.2
+Excise duty on sales
+82.5
+(725.7)
+322.1
+for the year ended March 31, 2019
+Salaries, wages and bonus
+3,516.6
+3,475.9
+250.9
+262.5
+277.2
+376.7
+Consumption of materials, stores and spare parts
+Contribution to provident and other funds
+6,062.5
+NOTE: 38 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE CONSOLIDATED
+STATEMENT OF PROFIT AND LOSS
+March 31, 2018
+* in Million
+Year ended
+March 31, 2019
+6,055.5
+Printing and stationery
+Repairs and maintenance
+Insurance
+Rent
+Rates and taxes
+Power and fuel
+Staff welfare expenses
+Year ended
+96.96%
+921.4
+100.00%
+100.00%
+100.00%
+80 Ranbaxy GmbH
+Germany
+100.00%
+(Refer note m)
+81 Ranbaxy Ireland Limited
+82 Ranbaxy Italia S.P.A.
+84 Ranbaxy (Poland) SP. Z O.O.
+85 Terapia SA
+86 AO Ranbaxy
+87 Ranbaxy South Africa (Pty) Ltd
+Germany
+Ireland
+100.00%
+Italy
+100.00%
+100.00%
+83 Sun Pharmaceutical Industries S.A.C.
+Peru
+Poland
+Romania
+Russia
+South Africa
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+79 Basics GmbH
+100.00%
+100.00%
+100.00%
+73 Sun Pharma ANZ Pty Ltd
+Australia
+100.00%
+100.00%
+74 Ranbaxy Farmaceutica Ltda.
+Brazil
+100.00%
+100.00%
+75 Sun Pharma Canada Inc. (Formerly known as Ranbaxy
+Canada
+100.00%
+100.00%
+Pharmaceuticals Canada Inc.)
+76 Sun Pharma Egypt Limited LLC (Formerly known as
+Egypt
+100.00%
+100.00%
+Ranbaxy Egypt Ltd)
+77 Rexcel Egypt LLC
+Egypt
+100.00%
+100.00%
+78 Office Pharmaceutique Industriel Et Hospitalier
+France
+100.00%
+United States of America
+96.81%
+100.00%
+100.00%
+100.00%
+100.00%
+(Refer note k)
+(Refer note k)
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+98 Ranbaxy Signature LLC
+99 Ranbaxy Laboratories, Inc
+100.00%
+100 Ranbaxy Pharmaceuticals, Inc
+67.50%
+67.50%
+(Refer note t)
+(Refer note t)
+Annual Report 2018-19
+206 Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+101 Sun Pharmaceuticals Morocco LLC
+102 "Ranbaxy Pharmaceuticals Ukraine" LLC
+103 Insite Vision Incorporated
+United States of America
+96.81%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+88 Ranbaxy Pharmaceuticals (Pty) Ltd
+89 Be-Tabs Investments (Pty) Ltd
+90 Sonke Pharmaceuticals Proprietary Limited
+Laboratorios Ranbaxy, S.L.U.
+91
+92 Ranbaxy (U.K.) Limited
+93 Ranbaxy Holdings (U.K.) Limited
+94 Ranbaxy Europe Limited
+95 Ranbaxy Inc.
+96 Ranbaxy (Thailand) Co., Ltd.
+100.00%
+97 Ohm Laboratories, Inc.
+United States of America
+Thailand
+United States of America
+United States of America
+United States of America
+South Africa
+100.00%
+100.00%
+South Africa
+100.00%
+(Refer note q)
+South Africa
+Spain
+70.00%
+70.00%
+United Kingdom
+United Kingdom
+United Kingdom
+PI Real Estate Ventures, LLC
+72
+100.00%
+52 Taro Pharmaceuticals North America, Inc.
+Cayman Islands, British West Indies
+76.54%
+74.82%
+53 Taro Pharmaceuticals Europe B.V.
+54 Taro Pharmaceuticals Ireland Ltd
+55 Taro International Ltd.
+Netherlands
+Ireland
+76.54%
+74.82%
+74.82%
+(Refer note j)
+74.82%
+(Refer note j)
+76.54%
+74.82%
+56 Taro Pharmaceuticals (UK) Ltd.
+57 Taro Pharmaceutical India Private Limited
+United Kingdom
+74.82%
+(Refer note f)
+(Refer note f)
+India
+(Refer note s)
+Specialty in progress
+FINANCIAL STATEMENTS > Consolidated
+Israel
+205
+76.54%
+74.82%
+100.00%
+Japan
+100.00%
+100.00%
+Japan
+100.00%
+46 Sun Pharma Healthcare FZE
+47 Morley & Company, Inc.
+48 Sun Laboratories FZE
+49 Taro Pharmaceutical Industries Ltd. (Taro)
+United Arab Emirates
+100.00%
+United States of America
+100.00%
+100.00%
+100.00%
+United Arab Emirates
+100.00%
+100.00%
+Israel (Refer note b)
+76.54%
+74.82%
+50 Taro Pharmaceuticals Inc.
+51 Taro Pharmaceuticals U.S.A., Inc.
+Canada
+76.54%
+United States of America
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Country of Incorporation
+Proportion of ownership interest
+for the year ended
+100.00%
+66 URL PharmPro, LLC
+United States of America
+100.00%
+67
+2 Independence Way LLC
+United States of America
+100.00%
+100.00%
+68
+Universal Enterprises Private Limited
+69
+100.00%
+Sun Pharma Switzerland Ltd.
+100.00%
+100.00%
+100.00%
+100.00%
+70 Sun Pharma East Africa Limited
+Kenya
+100.00%
+100.00%
+71
+Pharmalucence, Inc.
+United States of America
+100.00%
+India
+Switzerland
+United States of America
+Dungan Mutual Associates, LLC
+65
+March 31, 2018
+March 31, 2019
+58 3 Skyline LLC
+59 One Commerce Drive LLC
+60 Taro Pharmaceutical Laboratories Inc.
+61 Taro Pharmaceuticals Canada, Ltd.
+United States of America
+United States of America
+United States of America
+Canada
+76.54%
+74.82%
+76.54%
+74.82%
+76.54%
+74.82%
+74.82%
+(Refer note n)
+62 Alkaloida Sweden AB
+Sweden
+100.00%
+(Refer note I)
+63 Dusa Pharmaceuticals, Inc.
+United States of America
+100.00%
+100.00%
+64 Mutual Pharmaceutical Company Inc.
+United States of America
+100.00%
+100.00%
+104 Insite Vision Ltd.
+105 Ocular Technologies SARL
+100.00%
+(Refer note u)
+(Refer note v)
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+March 31, 2019 March 31, 2018
+Proportion of ownership interest
+for the year ended
+United States of America
+United Kingdom
+Morocco
+Ukraine
+119 scPharmaceuticals Inc.
+118 Generic Solar Power LLP
+117 Medinstill LLC
+Country of Incorporation
+116 S&I Ophthalmic LLC
+Name of Associates
+106 Sun Pharmaceutical Medicare Limited
+107 JSC Biosintez
+108 Sun Pharmaceuticals Holdings USA, Inc.
+109 Zenotech Laboratories Nigeria Limited
+111 Zenotech Farmaceutica Do Brasil Ltda
+112 Kayaku Co., Ltd.
+110 Zenotech Inc
+Name of Joint Venture Entities
+114 Artes Biotechnology GmbH
+115 MSD Sun LLC
+113 Sun Pharma Distributors Limited
+The Group's capital management objectives are:
+(i) Debt equity ratio
+- to ensure the Group's ability to continue as a going concern; and
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+The Group monitors capital on the basis of the carrying amount of debt less cash and cash equivalents, bank balances
+(excluding earmarked balances with banks) and current investments as presented on the face of the consolidated financial
+statements. The Group's objective for capital management is to maintain an optimum overall financial structure.
+Debt (includes non-current borrowings, current borrowings, current maturities of finance lease
+obligations and current maturities of long-term debt)
+Dividend on equity shares
+Net debt
+Final dividend for the year ended March 31, 2018 of 2.0 (year ended March 31, 2017: * 3.5) per
+fully paid share
+Total equity, including reserves
+Net debt to total equity ratio
+(ii) Dividend on equity shares paid during the year
+NOTE: 46 CAPITAL MANAGEMENT
+Less : cash and cash equivalents, bank balances (excluding earmarked balances with banks) and
+current investments
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+9.6
+FINANCIAL STATEMENTS > Consolidated
+Unlisted shares valued at fair value
+Balance at the beginning of the year
+22.5
+Dividend distribution tax on above
+Purchases
+53.5
+215
+901.7
+7.4
+(4.1)
+(886.6)
+Balance at the end of the year
+71.9
+22.5
+Specialty in progress
+Others including disposal / settlements / charge / exchange fluctuation to consolidated statement of
+profit and loss
+Dividends not recognised at the end of the reporting period
+984.9
+105,143.6
+less than 180 days
+Financial assets for which loss allowances is measured using the expected credit loss
+Trade receivables
+The Group has used expected credit loss (ECL) model for assessing the impairment loss. For this purpose, the Group uses a
+provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal
+risk factors and historical data of credit losses from various customers.
+Trade receivables
+The Group limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have
+a good credit rating. The Group does not expect significant any losses from non-performance by these counter-parties, and
+does not have any significant concentration of exposures to specific industry sectors or specific country risks.
+Investments
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+216 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
+contractual obligations and arises principally from the Group's receivables from customers, loans and investments. Credit risk
+is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
+counterparty to which the Group grants credit terms in the normal course of business.
+Credit risk
+The Group's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Group's
+risk management assessment and policies and processes are established to identify and analyse the risks faced by the
+Group, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment
+and management policies and processes are reviewed regularly to reflect changes in market conditions and the
+Group's activities.
+NOTE : 47 FINANCIAL RISK MANAGEMENT
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and hence not
+recognised as liability.
+* in Million
+As at
+March 31, 2018
+103,852.7
+111,827.1
+139,770.2
+(6,683.5)
+447,226.0
+N.A.
+(35,917.5)
+421,982.7
+N.A.
+As at
+March 31, 2019
+Year ended
+March 31, 2019
+Year ended
+March 31, 2018
+4,791.6
+7,977.4
+March 31, 2018
+1,624.0
+The Board of Directors at it's meeting held on May 28, 2019 have recommended payment of final dividend of * 2.75 per
+share of face value of 1 each for the year ended March 31, 2019. The same amounts to ₹6,598.2 Million.
+* in Million
+Year ended
+March 31, 2019
+63,098.2
+* in Million
+Equity instruments - quoted #
+Investments
+Financial assets
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+214 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+411.8
+Total
+267.5
+144.3
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Financial liabilities
+71.9
+556.9
+5,621.2
+Others quoted
+200,846,362
+22,098.9
+Others unquoted
+Equity instruments - unquoted
+Bonds/debentures - quoted
+7,309.1
+559.6
+Derivatives not designated as hedges
+254.2
+Total
+69,218.9
+8,122.9
+Derivatives designated as hedges
+Year ended
+Government securities - quoted
+Others - quoted
+Reconciliation of Level 3 fair value measurements
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates their fair value.
+There were no transfers between Level 1 and 2 in the periods.
+# The investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose. Upon the
+application of Ind AS 109, the Group has chosen to designate these investments in equity instruments as at fair value through other comprehensive
+income as the management believes that this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting
+changes in fair value immediately in consolidated statement of profit and loss.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted
+investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents estimate of fair
+value within that range.
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly.
+Level 3 inputs are unobservable inputs for the asset or liability.
+179.5
+35.8
+143.7
+22.5
+783.5
+6,090.1
+As at
+March 31, 2019
+5,306.6
+25,397.6
+5,177.2
+326.3
+22.5
+Others - unquoted
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Total
+Financial liabilities
+Derivatives not designated as hedges
+Mutual funds unquoted
+Derivatives designated as hedges
+* in Million
+Level 1
+As at March 31, 2018
+Level 2
+Level 3
+4,394.0
+27,803.1
+Total
+35,486.2
+in Million
+As at
+March 31, 2018
+beyond 365 days
+3.0
+3.0
+4,388.3
+2,778.9
+8,620.1
+42,697.4
+Trade payables
+35,686.7
+1,609.4
+185.3
+185.3
+34,077.3
+Financial liabilities
+26,151.2
+25,230.5
+920.7
+2,058.2
+3.2
+2,061.4
+5,759.4
+114.0
+2,210.4
+4,150.2
+Borrowings
+418.1
+12,005.4
+418.1
+3,809.9
+Cash and cash equivalents
+2,117.9
+1,192.0
+39,104.1
+5,001.9
+Specialty in progress
+Changes in the fair value of forward contracts and option
+contracts that economically hedge monetary assets and
+liabilities in foreign currencies, and for which no hedge
+accounting is applied, are recognised in the consolidated
+statement of profit and loss. The changes in fair value
+of the forward contracts and option contracts, as well
+as the foreign exchange gains and losses relating to
+the monetary items, are recognised in the consolidated
+statement of profit and loss.
+In respect of the aforesaid hedges of highly probable
+forecasted transactions, the Group has recorded a gain of
+* 539.0 Million for the year ended March 31, 2019 and
+loss of 75.7 Million for year ended March 31, 2018 in
+other comprehensive income. The Group also recorded
+hedges as a component of revenue, loss of 22.5 Million
+for year ended March 31, 2019 and gain of 47.6
+Million for year ended March 31, 2018 on occurrence of
+forecasted sale transaction.
+probable forecasted transactions as cash flow hedges and
+measures them at fair value. The effective portion of such
+cash flow hedges is recorded as in other comprehensive
+income, and re-classified in the income statement as
+revenue in the period corresponding to the occurrence
+of the forecasted transactions. The ineffective portion
+of such cash flow hedges is immediately recorded in the
+consolidated statement of profit and loss.
+Hedges of highly probable forecasted transactions
+The Group designates its derivative contracts that
+hedge foreign exchange risk associated with its highly
+The Group is exposed to exchange rate risk that arises
+from its foreign exchange revenues and expenses,
+primarily in US Dollar, Euro, South African Rand,
+Japanese Yen and Russian Rouble and foreign currency
+debt is primarily in US Dollar. The Group uses foreign
+currency forward contracts, foreign currency option
+contracts, interest rate swap and currency swap
+contracts (collectively, "derivatives") to mitigate its
+risk of changes in foreign currency exchange rates.
+The counterparty for these contracts is generally a bank
+or a financial institution.
+c) Derivative contracts
+In management's opinion, the sensitivity analysis is
+unrepresentative of the inherent foreign exchange risk
+because the exposure at the end of the reporting period
+does not reflect the exposure during the year.
+For the years ended March 31, 2019 and March 31, 2018
+every 5% strengthening in the exchange rate between
+the Indian rupee and the respective major currencies for
+the above mentioned financial assets/liabilities would
+increase Group's profit and increase in Group's equity by
+approximately 1,226.4 Million and * 1,077.0 Million
+respectively. A 5% weakening of the Indian rupee and the
+respective major currencies would lead to an equal but
+opposite effect.
+b) Sensitivity
+47,692.1
+11,969.8
+549.9
+5,759.4
+2,096.4
+291.1
+291.1
+158.7
+158.7
+83.7
+3,653.3
+74,793.0
+83.7
+2,281.6
+11,942.6
+Trade payables
+64,222.1
+1,371.7
+62,850.4
+Borrowings
+Financial liabilities
+50,612.2
+3,840.5
+54,452.7
+2,908.2
+502.4
+3,410.6
+4,427.5
+14,757.7
+36,986.2
+78,979.8
+218 Sun Pharmaceutical Industries Ltd.
+3,600.3
+11,716.2
+253.6
+Cash and cash equivalents
+Trade receivables
+Financial assets
+Total
+Japanese Yen
+South African
+Rand
+Russian Rouble
+Euro
+US Dollar
+As at March 31, 2018
+* in Million
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+Annual Report 2018-19
+180 - 365 days
+Trade receivables
+Total
+Less than 1 year
+1-3 years
+More than 3
+years
+in Million
+Total as at
+March 31, 2019
+Non derivative
+The table below provides details regarding the contractual maturities of significant undiscounted financial liabilities:
+Borrowings
+Other financial liabilities
+Derivatives
+Specialty in progress
+90,062.3
+13,238.6
+2,023.2
+41,478.7
+3,671.9
+135,212.9
+Trade payables
+Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group
+manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
+due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Group's reputation.
+The Group had unutilised working capital lines from banks of 42,377.3 Million as on March 31, 2019, 47,081.4 Million as
+on March 31, 2018.
+Other than trade receivables, the Group has no significant class of financial assets that is past due but not impaired. The Group
+has recognised an allowance of * 9.8 Million (March 31, 2018 : 4.5 Million) against a past due loan including interest.
+Liquidity risk
+3,142.9
+86,212.4
+976.4
+3,899.3
+91,088.1
+75,974.0
+2,781.2
+2,540.5
+81,295.7
+in Million
+Movement in the expected credit loss allowance on trade receivables
+Balance at the beginning of the year
+Addition
+Recoveries/reversals
+Balance at the end of the year
+Year ended
+March 31, 2019
+Year ended
+March 31, 2018
+3,142.9
+268.2
+2,109.9
+1,358.0
+(1,165.0)
+2,246.1
+(325.0)
+105,324.1
+41,478.7
+10.2
+13,248.8
+2,023.2
+3,682.1
+150,484.9
+141,568.4
+179.5
+14,112.7
+3,936.8
+159,617.9
+179.5
+Market risk
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
+market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of
+market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to
+all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term
+debt. The Group is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market
+value of its investments. Thus, the Group's exposure to market risk is a function of investing and borrowing activities and
+revenue generating and operating activities in foreign currencies.
+Foreign exchange risk
+The Group's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in
+US Dollar, Euro, South African Rand, Japanese Yen and Russian Rouble) and foreign currency borrowings (primarily in US
+Dollar). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Group's revenues and
+expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between the Indian rupee
+and these foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the
+future. Consequently, the Group uses both derivative and non-derivative financial instruments, such as foreign exchange
+forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate the risk of
+changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognised assets
+and liabilities.
+a) Significant foreign currency risk exposure relating to trade receivables, cash and cash equivalents, borrowings and trade payables
+* in Million
+As at March 31, 2019
+US Dollar
+Euro
+Russian Rouble
+South African
+Rand
+Japanese Yen
+7,179.4
+Financial assets
+316.5
+* in Million
+Total as at
+March 31, 2018
+391.4
+20.4
+411.8
+FINANCIAL STATEMENTS > Consolidated
+217
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Non derivative
+Borrowings
+Trade payables
+Other financial liabilities
+Derivatives
+Less than 1 year
+1 - 3 years
+More than 3
+years
+87,043.5
+47,662.0
+6,862.9
+13,796.2
+3,936.8
+104,776.5
+47,662.0
+71.9
+2,480.4
+28.2
+2,508.6
+Mutual funds - unquoted
+5,455.7
+Equity instruments - unquoted
+71.9
+Bonds/debentures - quoted
+35,486.2
+Government securities - quoted
+556.9
+Government securities - unquoted (* 10,000)
+0.0
+Mutual funds unquoted
+Equity instruments - quoted
+5,621.2
+22,098.9
+Others unquoted
+7,309.1
+Loans to related parties
+Loans to employees/others
+283.3
+2,980.6
+Trade receivables
+88,842.0
+Deposits
+1.4
+Others - quoted
+Investments
+Financial assets
+Amortised cost
+7.6
+182,379,237
+7.6
+141,217,558
+5.9
+145,302,877
+6.1
+Shareholding has been consolidated on the basis of PAN as per SEBI circular dated December 19, 2017
+# Pursuant to Scheme of Amalgamation, Shanghvi Finance Private Limited ("SFPL"), who is a part of the Promoter Group of the Company, has
+w.e.f. October 23, 2018 acquired 959,489,975 Equity Shares of the Company representing 40.0% of the total paid-up equity share capital of
+the Company from 11 Transferor Companies namely 1) Viditi Investment Private Limited; 2) Tejaskiran Pharmachem Industries Private Limited;
+3) Quality Investment Private Limited; 4) Family Investment Private Limited; 5) Virtuous Share Investments Private Limited; 6) Virtuous Finance
+Private Limited; 7) Sholapur Organics Private Limited; 8) Jeevanrekha Investrade Private Limited; 9) Package Investrade Private Limited; 10)
+Asawari Investment and Finance Private Limited; and 11) Nirmit Exports Private Limited. These transferor companies formed part of promoter
+group and collectively held the aforementioned equity shares of the Company.
+NOTE: 43 RESEARCH AND DEVELOPMENT EXPENDITURE
+Revenue, net (excluding depreciation) [Refer note 38]
+Capital
+NOTE: 44 CATEGORIES OF FINANCIAL INSTRUMENTS
+Year ended
+March 31, 2019
+19,057.1
+718.2
+19,775.3
+* in Million
+Year ended
+March 31, 2018
+20,520.9
+1,819.4
+22,340.3
+Fair value
+through profit
+or loss
+As at March 31, 2019
+Fair value
+through other
+comprehensive
+income
+* in Million
+Margin money/security against guarantees/ commitments
+182,437,880
+2.6
+212 Sun Pharmaceutical Industries Ltd.
+Financial assets
+Investments
+Equity instruments - quoted
+Equity instruments - unquoted
+Bonds/debentures - quoted
+Government securities - quoted
+Government securities - unquoted (10,000)
+Mutual funds - unquoted
+Others quoted
+-
+Others unquoted
+Total
+Loans to employees/others
+Deposits
+5,455.7
+Security deposits
+Cash and cash equivalents
+Bank balances other than cash and cash equivalents
+Interest accrued on investments / balances with banks
+Specialty in progress
+Fair value
+through profit
+or loss
+As at March 31, 2019
+Trade receivables
+Derivatives not designated as hedges
+Mandatorily measured:
+Other financial liabilities
+SUN
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Security deposits
+Cash and cash equivalents
+Bank balances other than cash and cash equivalents
+Interest accrued on investments / balances with banks
+Refund due from government authorities
+Derivatives designated as hedges
+Other financial assets
+Mandatorily measured:
+Derivatives not designated as hedges
+Total
+Financial liabilities
+Borrowings
+Current maturities of long-term debt and finance lease obligations
+Trade payables
+Interest accrued
+Unpaid dividends
+Security deposits
+Payable on purchase of property, plant and equipment
+Derivatives designated as hedges
+Annual Report 2018-19
+Fair value
+through other
+comprehensive
+income
+8.1
+8.4
+iv Nil (upto March 31, 2018: 1,035,581,955) equity shares of 1 each have been allotted as fully paid up bonus shares
+during the period of five years immediately preceding the date at which the Balance Sheet is prepared.
+(0.0)
+*
+0.0
+30,366
+(30,366)
+* in Million
+Year ended March 31, 2018
+Number of
+shares
+in Million
+Year ended March 31, 2019
+Number of
+shares
+Less: shares allotted by ESOP trust on exercise of employee stock
+option (March 31, 2018 : * : 30,366)
+Closing balance
+V
+Opening balance (April 01, 2017 : * : ₹ 30,366)
+2,399.3
+2,399,323,180
+2,399.3
+2,399,334,970
+* 11,790, March 31, 2018: * : * 62,365)
+Closing balance
+2,399.3
+0.0
+* in Million
+62,365
+shares
+2,399,260,815
+Year ended March 31, 2018
+Number of
+iii The movement of shares issued to ESOP Trust at face value is as follows:
+334,956,764 (upto March 31, 2018: 334,956,764) equity shares of 1 each have been allotted, pursuant to scheme of
+amalgamation, without payment being received in cash during the period of five years immediately preceding the date at
+which the Balance Sheet is prepared.
+vi Refer Note 58 for number of employee stock options against which equity shares are to be issued by the Company/
+ESOP Trust upon vesting and exercise of those stock options.
+vii 7,500,000 (upto March 31, 2018: 7,500,000), equity shares of 1 each have been bought back during the period
+of five years immediately preceding the date at which the Balance Sheet is prepared. The shares bought back were
+cancelled.
+230,285,690
+0.0
+282,603
+40.0
+9.6
+230,285,690
+959,772,578
+% of holding
+As at March 31, 2018
+Number of
+shares
+% of holding
+As at March 31, 2019
+Number of
+shares
+Quality Investments Private Limited #
+Life Insurance Corporation of India
+Family Investment Private Limited #
+Tejaskiran Pharmachem Industries Private Limited #
+Viditi Investment Private Limited #
+Dilip Shantilal Shanghvi
+Shanghvi Finance Private Limited #
+Name of Shareholders
+viii Equity shares held by each shareholder holding more than 5 percent equity shares in the Parent Company
+are as follows:
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+211
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+2,399.3
+* 0.0
+194,820,971
+11,790
+* in Million
+210 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+2,850.6
+As at
+March 31, 2018
+As at
+March 31, 2019
+3,379.6
+* in Million
+B) Guarantees given by the bankers on behalf of the Group
+Future cash outflows in respect of the above matters are
+determinable only on receipt of judgements / decisions
+pending at various forums / authorities.
+Footnote:
+The Group is a defendant in a number of putative
+class action lawsuits and individual actions brought
+by purchasers and payors in US alleging that the
+Company and its affiliates violated antitrust laws and the
+Racketeer Influenced and Corrupt Organizations Act,
+with respect to its ANDAs for Valganciclovir, Valsartan
+and Esomeprazole. The cases have been transferred
+to the United States District Court for the District of
+Massachusetts for coordinated proceedings. The cases
+are proceeding in discovery.
+SUN
+Antitrust - In re Ranbaxy Generic Drug Application
+Antitrust Litigation:
+Antitrust - Lipitor:
+The Group is a defendant in a number of putative
+class action lawsuits and individual actions brought
+by purchasers and payors, as well as a generic
+manufacturer in US, alleging that the Company and
+its affiliates violated antitrust laws in connection with
+a 2005 patent settlement agreement with Cephalon
+concerning Modafinil. The cases were transferred to the
+United States District Court for the Eastern District of
+Pennsylvania for coordinated proceedings. The Company
+has reached settlements with all but one plaintiff.
+defendants. It generally alleges that the defendants made
+material misstatements and omissions in connection
+with an alleged conspiracy to fix drug prices. On
+September 24, 2018, the Court granted in part and
+denied in part the Company's motion to dismiss.
+Antitrust - Modafinil:
+One US subsidiary and two of its former officers are
+named as defendants in a putative shareholder class
+action pending in the United States District Court for the
+Southern District of New York and which asserts claims
+under Section 10(b) of the Securities Exchange Act of
+1934 (the "Exchange Act") against all defendants and
+Section 20(a) of the Exchange Act against the individual
+US subsidiaries, and in the case of one complaint, a
+former member of one subsidiary's sales group, are
+defendants along with other pharmaceutical companies
+in a number of putative class action lawsuits and
+individual actions brought by purchasers and payors
+of several generic pharmaceutical products, as well as
+State Attorneys Generals, alleging a conspiracy with
+competitors to fix prices, rig bids, or allocate customers,
+and also an industry-wide conspiracy as to all generic
+pharmaceutical products. The cases have been or
+expected to be transferred to the United States District
+Court for the Eastern District of Pennsylvania for
+coordinated proceedings. The Court has sequenced the
+lawsuits into separate groups for purposes of briefing
+motions to dismiss. Defendants filed motions to dismiss
+complaints in the first group. On October 16, 2018, the
+Court denied the motions with respect to the federal law
+claims. On February 15, 2019, the Court granted in part
+and denied in part the motions with respect to the state
+law claims. Certain cases are proceeding in discovery.
+Speakes Vs Taro Pharmaceutical Industries Limited:
+US subsidiaries separately have received a
+Civil Investigative Demand from the U.S.
+Department of Justice pursuant to the False Claims
+Act seeking information relating to corporate and
+employee records, generic pharmaceutical products
+and pricing, communications and/or agreements with
+competitors and others regarding the sale of generic
+pharmaceutical products, and certain other related
+matters. The subsidiaries are in the process of responding
+to the requests.
+pharmaceutical products, and certain other related
+matters. The subsidiaries are in the process of responding
+to the subpoenas. Certain current and former officers
+and employees in the companies' respective commercial
+teams have also received related subpoenas. A similar
+subpoena was received by each subsidiary from the
+Connecticut Attorney General.
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+209
+FINANCIAL STATEMENTS > Consolidated
+The Group is a defendant in a number of putative
+class action lawsuits and individual actions brought by
+purchasers and payors in US alleging that the Company
+and its affiliates violated antitrust laws in connection
+with a 2008 patent settlement agreement with Pfizer
+concerning Atorvastatin. The cases have been transferred
+to the United States District Court for the District of
+New Jersey for coordinated proceedings. The cases are
+proceeding in discovery.
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Number of
+shares
+Add: shares allotted to employees on exercise of employee stock
+option (excluding shares held by ESOP trust) (March 31, 2019 : * :
+Opening balance
+ii Reconciliation of the number of equity shares and amount outstanding at the beginning and at the end of reporting period
+Year ended March 31, 2019
+The equity shares of the Parent Company, having par value of ₹ 1 per share, rank pari passu in all respects including voting
+rights and entitlement to dividend.
+i Rights, preferences and restrictions attached to equity shares
+NOTE: 42 DISCLOSURES RELATING TO SHARE CAPITAL
+* The Group is committed to pay milestone payments and royalty on certain contracts, however, obligation to pay is contingent upon fulfillment of
+contractual obligation by parties to the contract.
+1,300.3
+2,873.3
+* in Million
+As at
+March 31, 2018
+19,579.2
+1,846.1
+750.9
+V) Letters of credit for imports
+IV) Investment related commitments
+III) For non-cancellable lease related commitments [Refer note 55]
+20,783.5
+Estimated amount of contracts remaining to be executed on capital account (net of advances)
+For derivative related commitments [Refer note 47 (c)]
+II)
+1)
+March 31, 2019
+As at
+NOTE: 41 COMMITMENTS
+2,399,323,180
+* in Million
+Margin money/ security against guarantees/ commitments
+743.6
+70,623.0
+Level 3
+Financial assets
+Investments
+Equity instruments - quoted #
+Equity instruments - unquoted
+Bonds/debentures - quoted
+As at March 31, 2018
+Fair value
+through profit
+or loss
+Total
+Derivatives not designated as hedges
+As at March 31, 2019
+Level 2
+Mandatorily measured :
+Derivatives designated as hedges
+Payable on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+Interest accrued
+Trade payables
+Current maturities of long-term debt and finance lease obligations
+Borrowings
+Financial liabilities
+Other financial liabilities
+Level 1
+Financial assets and liabilities measured at fair value on a recurring basis at the end of each reporting period
+NOTE: 45 FAIR VALUE HIERARCHY
+in Million
+Amortised cost
+Fair value
+through other
+comprehensive
+income
+Amortised cost
+2,079.4
+1,901.7
+783.5
+11,289.8
+57,921.0
+205,846.8
+97,517.9
+6,334.8
+47,662.0
+344.6
+86.4
+151.3
+4,141.2
+35.8
+2,455.9
+143.7
+143.7
+35.8
+158,694.1
+Total
+Derivatives not designated as hedges
+* in Million
+Other financial assets
+As at March 31, 2018
+Fair value
+through profit
+or loss
+* in Million
+150,304.4
+267.5
+144.3
+144.3
+1,848.0
+267.5
+126.6
+Fair value
+through other
+comprehensive
+93.9
+6,209.9
+41,478.7
+98,933.7
+169,320.7
+64,157.3
+254.2
+13,256.4
+1,056.7
+559.6
+Mandatorily measured:
+164.7
+2,489.8
+391.7
+Amortised cost
+1,221.9
+2,133.0
+Government securities quoted
+Derivatives designated as hedges
+income
+Refund due from government authorities
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+213
+FINANCIAL STATEMENTS > Consolidated
+20,040.1
+79,253.7
+760.9
+316.0
+27,803.1
+326.3
+4,427.5
+1.0
+23,339.0
+78,152.8
+5,306.6
+25,397.6
+5,177.2
+0.0
+2.2
+22.5
+4,394.0
+(13.3)
+(402.2)
+676.2
+143.7
+117.0
+(274.2)
+408.7
+260.7
+9.1
+Difference between written down value of property, plant
+Tax losses (includes capital in nature)
+292.2
+292.2
+676.2
+(110.0)
+(13.3)
+552.9
+2,189.6
+(1,160.2)
+13.3
+* Movement during the year includes foreign currency translation difference amounting to 1,598.1 Million gain for the year ended March 31, 2019.
+iii) Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been
+recognised are attributable to the following:
+(22.5)
+MAT credit entitlement
+1,042.8
+for the year ended March 31, 2019
+Expenses claimed for tax purpose on payment basis
+Others
+Unabsorbed depreciation
+SUN
+PHARMA
+Notes to the Consolidated Financial Statements
+ii) Deferred tax liabilities (Net)
+Deferred tax liabilities
+Difference between written down value of property, plant and
+equipment and capital work-in-progress as per books of accounts
+and income tax and others
+* in Million
+Opening balance
+April 01, 2018
+Profit/(loss)
+movement
+during the year*
+Other
+comprehensive
+income
+movement
+Closing balance
+March 31, 2019
+during the year
+1,881.3
+(285.7)
+1,595.6
+Undistributed profits
+984.5
+2,865.8
+(984.5)
+(1,270.2)
+1,595.6
+Less Deferred tax assets
+267.5
+Unused tax credits (including MAT credit entitlement)
+Deductible temporary differences
+936.0
+* in Million
+As at
+March 31, 2018
+Emerging markets
+United States of America
+India
+in Million
+Year ended
+March 31, 2018
+Revenue by Geography
+The reportable segments derives their revenues from the sale of pharmaceuticals products (generics, speciality, API, etc.).
+The CODM reviews revenue as the performance indicator. The measurement of each segment's revenues, expenses and
+assets is consistent with the accounting policies that are used in preparation of the Group's consolidated financial statements.
+4. Rest of world
+3. Emerging markets
+2. United States of America
+The Chief Operating Decision Maker ('CODM') evaluates the Group's performance and allocates resources based on an
+analysis of various performance indicators by reportable segments. The Group's reportable segments are as follows:
+1. India
+NOTE: 53 SEGMENT REPORTING
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+223
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+8.7
+11.1
+Rest of world
+8.7
+Year ended
+March 31, 2019
+84,102.0
+Less Deferred tax liabilities
+Provision for sales return
+Less:
+Revenue as per contracted price, net of returns
+The reconciling items of revenue recognised in the consolidated statement of profit and loss with the contracted price
+are as follows:
+Ind AS 115 "Revenue from Contracts with Customers" was issued on March 28, 2018 and supersedes Ind AS 11
+"Construction Contracts" and Ind AS 18 "Revenue" and it applies, with limited exceptions, to all revenue arising from
+contracts with its customers. The Company adopted Ind AS 115 using the modified retrospective method of adoption with
+the date of initial application of April 01, 2018 which does not require restatement of comparative period. The Company
+elected to apply the standard to all contracts as at April 01, 2018. Accordingly, an adjustment of ₹ 6,493.0 Million was
+recognised to retained earnings as on April 01, 2018. Further, during the financial year 2018-19 the Group has recorded
+an additional amount of ₹ 493.7 Million as deferred revenue pursuant to the requirements of Ind AS 115. The performance
+obligation in respect of amount recorded in retained earnings and for amount recognised as deferred revenue is yet to
+be completed. Revenue of ₹ 628.9 Million has been recognised as Revenue from contract with customer in financial year
+2018-2019 pursuant to completion of performance obligation in respect of the above contracts.
+NOTE: 54 REVENUE FROM CONTRACTS WITH CUSTOMERS
+Concentration of revenues from one customer of the Group was 25.7% and 30.6% of total revenue for the year ended
+March 31, 2019 and March 31, 2018 respectively.
+In view of the interwoven / intermix nature of business and manufacturing facility, other segmental information is not
+ascertainable.
+260,659.4
+286,862.8
+35,700.4
+40,638.0
+52,221.6
+58,698.0
+88,635.4
+109,360.1
+78,166.7
+As at
+March 31, 2019
+1
+2,399,330,257 2,399,362,073
+Year ended
+March 31, 2018
+Year ended
+March 31, 2019
+Diluted earnings per share (in)
+Basic earnings per share (in ₹)
+Weighted average number of shares used in computing diluted earnings per share (A+B)
+Nominal value per share (in)
+Profit for the year (in Million) - used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic earnings per share (A)
+Add: Dilution effect of employee stock option (B)
+The unused tax credits will expire from financial year 2022-23 to financial year 2033-34 and unused tax losses will expire
+from financial year 2019-20 to 2031-32. In case of certain overseas subsidiaries which have tax losses and unused tax
+credits, the amount is not material and there is no expiry period for tax losses and unused tax credits.
+NOTE: 52 EARNINGS PER SHARE
+154,919.6
+155,829.3
+22,933.0
+20,881.4
+7,606.1
+8,034.7
+31,260.2
+38,885.4
+93,120.3
+88,027.8
+3,575
+1
+11.1
+20,957.0
+2,399,296,653
+65,420
+5,127.3
+222 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+25,548.7
+(993.3)
+2,468.7
+24,073.3
+8,308.6
+1,167.1
+6,205.5
+2,000.9
+936.0
+(13.3)
+1,078.2
+Others
+and equipment and capital work-in-progress as per books of
+accounts and income tax
+6,307.7
+1,180.4
+26,654.2
+2,399,326,681
+(128.0)
+Interest rate guarantee
+Mortality
+Revenue from contracts with customers
+SUN
+228 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+3,068.8
+3,385.7
+(173.6)
+(291.0)
+673.2
+PHARMA
+404.7
+(26.7)
+161.2
+229.9
+2,365.4
+3,068.8
+(Funded)
+(Funded)
+Gratuity
+42.6
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Assumptions:
+7.10%
+N.A.
+7.70%
+7.50%
+In range of 7.50% to
+7.50%
+In range of 7.10% to
+7.10%
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+As at March 31, 2018
+As at March 31, 2019
+Retirement age (years)
+Employee turnover
+Expected rate of salary increase
+Expected return on plan assets
+Discount rate
+Gratuity
+N.A.
+Year ended
+March 31, 2018
+* in Million
+3,415.3
+949.3
+Obligation as at the year end
+(81.2)
+29.2
+due to experience
+(575.4)
+(50.0)
+5.6
+903.7
+(223.6)
+due to change in financial assumptions
+(160.9)
+(17.8)
+due to change in demographic assumptions
+Actuarial (gains)/losses on obligations
+(173.6)
+(87.4)
+(291.0)
+35.7
+40.6
+3,426.2
+Reconciliation of liability/(asset) recognised in the consolidated balance sheet
+Present value of commitments (as per actuarial valuation)
+(3,068.8)
+357.4
+3,426.2
+3,415.3
+(3,385.7)
+29.6
+(Funded)
+Gratuity
+Gratuity
+(Funded)
+As at
+March 31, 2018
+March 31, 2019
+As at
+* in Million
+Plan assets as at the year end
+Benefits paid
+Employer's contribution during the year
+Actuarial gain/(loss)
+Expected return
+Plan assets as at the beginning of the year
+Reconciliation of plan assets
+Net liability recognised in the consolidated financial statement
+Fair value of plan assets
+Year ended
+March 31, 2019
+(87.0)
+7.50%
+N.A.
+398.5
+84.8
+5th year
+389.4
+132.3
+414.2
+85.8
+4th year
+151.9
+397.7
+469.1
+86.7
+3rd year
+390.2
+100.3
+474.9
+87.5
+2nd year
+115.2
+355.1
+2,143.7
+2,908.1
+256.8
+33,857.3
+Specialty in progress
+In the United States, the Company sponsors a defined contribution 401(k) retirement savings plan for all eligible employees
+who meet minimum age and service requirements. The Company has no further obligations under the plan beyond its annual
+matching contributions.
+The contribution expected to be made by the Parent and Indian subsidiaries for gratuity, during financial year ending March 31, 2020 is 334.2 Million
+(Previous year: 384.8 Million).
+14.0
+2,977.6
+9.9
+67.3
+950.4
+2,358.1
+9.9
+67.3
+Surplus fund lying uninvested
+Insurer managed funds (Funded with LIC, break-up not available)
+Bonds and securities of public sector / financial institutions
+Central government securities
+The major categories of plan assets are as under:
+Thereafter
+1,496.9
+174.4
+560.3
+N.A.
+87.4
+88.4
+* in Million
+Delta effect of +1% change in discount rate
+The sensitivity analysis have been determined based on method that
+extrapolates the impact on defined benefit obligation as a reasonable
+change in key assumptions occuring at the end of the reporting period.
+Impact on defined benefit obligation
+Sensitivity analysis:
+58 to 60
+N.A.
+58 to 60
+N.A.
+As at March 31, 2019
+Pension Fund
+(Unfunded)
+15.00%
+In range of 7.00% to
+11.65%
+N.A.
+Indian Assured Lives
+Morality (2006-08)
+Indian Assured Lives
+Mortality (2006-08)
+Indian Assured Lives
+Morality (2006-08)
+In range of 8.21% to
+15.80%
+N.A.
+Indian Assured Lives
+Mortality (2006-08)
+N.A.
+N.A.
+In range of 7.00% to
+10.00%
+N.A.
+N.A.
+As at March 31, 2018
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+1st year
+44.6
+28.6
+(40.5)
+(26.0)
+(151.5)
+(170.3)
+164.9
+184.8
+173.1
+(155.8)
+(68.2)
+80.2
+(172.5)
+191.1
+(76.3)
+85.5
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee turnover
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation for next
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in discount rate
+(Funded)
+Gratuity
+698.8
+Benefits paid
+1.6
+Liability transferred in/ acquisitions
+Notes to the Consolidated Financial Statements
+225
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+58.4
+later than five years
+401.1
+338.3
+for the year ended March 31, 2019
+later than one year and not later than five years
+155.5
+not later than one year
+The future minimum lease payments under non-cancellable operating lease
+(ii) Group as lessor
+80.7
+458.4
+later than five years
+725.5
+143.0
+(e) Finance lease
+(i) Group as lessee
+The future minimum lease payments under non-cancellable finance lease
+not later than one year
+344.7
+341.6
+1,003.7
+1,256.7
+317.1
+434.3
+March 31, 2018
+Year ended
+in Million
+March 31, 2019
+Year ended
+Defined contribution plan
+NOTE: 56 EMPLOYEE BENEFITS PLANS
+later than one year and not later than five years
+later than five years
+not later than one year
+Present value of minimum lease payments payable
+Less: Unearned finance charges
+later than five years
+later than one year and not later than five years
+617.3
+400.6
+later than one year and not later than five years
+261.9
+Notes to the Consolidated Financial Statements
+PHARMA
+SUN
+224 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+260,659.4
+Revenue from contracts with customers include sales made to Aditya Medisales Limited amounting to 73,609.2 Million (March 31, 2018:
+* 79,765.6 Million).
+286,862.8
+for the year ended March 31, 2019
+(247,107.7)
+(239,349.3)
+(265,050.5)
+(7,758.4)
+(7,664.8)
+507,767.1
+Year ended
+March 31, 2018
+* in Million
+Year ended
+March 31, 2019
+559,578.1
+(272,715.3)
+As at
+March 31, 2019
+* in Million
+As at
+March 31, 2018
+Contract balances
+The future minimum lease payments under non-cancellable operating lease
+not later than one year
+March 31, 2018
+Year ended
+in Million
+Year ended
+March 31, 2019
+(i) Group as lessee
+(d) Operating lease
+(c) Lease receipts/payments are recognised in the consolidated statement of profit and loss under "Lease rental and hire
+charges" and "Rent" in note 32 and note 37 respectively.
+(b) The Group has obtained certain premises for its business operations (including furniture and fittings, therein as applicable)
+under operating lease or leave and license agreements. Periods range between 11 months to 10 years under leave and
+license and include both cancellable and non-cancellable. The Group has given refundable interest free security deposits
+in accordance with the agreed terms. These refundable security deposits have been valued at amortised cost under
+relevant Ind AS.
+(a) The Group has given certain premises and plant and machinery under operating lease or leave and license
+agreements. Periods range between 11 months to 10 years under leave and license and include both cancellable and
+non-cancellable. The Group has received refundable interest free security deposits, where applicable, in accordance
+with agreed terms.
+NOTE: 55 LEASES
+The performance obligation is satisfied when control of the goods or services are transferred to the customers based on the
+contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
+Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
+revenue received from customer for which performance obligation has not yet been completed.
+470.2
+8,487.9
+Contract liabilities
+78,152.8
+88,842.0
+Trade receivables
+Contract assets
+317.4
+349.0
+228.5
+997.4
+450.4
+66.0
+372.8
+67.7
+Expense charged to the consolidated statement of profit and loss
+Remeasurement of defined benefit obligation recognised in other
+comprehensive income
+(161.2)
+(229.9)
+Expected return on plan assets
+Actuarial loss (gain) on defined benefit obligation
+Actuarial loss (gain) on plan assets
+251.0
+256.8
+67.7
+Interest cost
+360.6
+345.9
+Gratuity
+(Funded)
+Year ended March 31, 2018
+Pension Fund
+(Unfunded)
+* in Million
+66.0
+64.9
+(322.6)
+(44.4)
+67.7
+Interest cost
+360.6
+345.9
+Current service cost
+3,682.3
+969.5
+3,426.2
+903.7
+Obligations as at the beginning of the year
+Reconciliation of defined benefit obligations
+(738.3)
+(44.4)
+(295.9)
+64.9
+Expense/(income) charged to other comprehensive income
+(42.6)
+26.7
+(695.7)
+Gratuity
+(Funded)
+Year ended March 31, 2019
+Pension Fund
+(Unfunded)
+Current service cost
+(Refer note 35)
+PHARMA
+SUN
+226 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+0.7
+48.7
+43.1
+0.9
+72.7
+64.9
+in Million
+Year ended
+March 31, 2018
+764.5
+March 31, 2019
+838.8
+Year ended
+Contribution to Labour Welfare Fund
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Superannuation Fund
+Contribution to Provident Fund and Family Pension Fund
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Corporation
+(ESIC) and other Funds which covers all regular employees of the Parent and Indian subsidiaries. While the employees and
+the Parent and Indian subsidiaries make predetermined contributions to the Provident Fund and ESIC, contribution to the
+Family Pension Fund and other statutory funds are made only by the Parent and Indian subsidiaries. The contributions are
+normally based on a certain percentage of the employee's salary. Amount recognised as expense in respect of these defined
+contribution plans, aggregate to 947.7 Million (March 31, 2018: 886.6 Million).
+293.1
+740.3
+Notes to the Consolidated Financial Statements
+Chargebacks, Rebates, discounts and others
+for the year ended March 31, 2019
+a) Gratuity
+Expense recognised in the consolidated statement of profit and loss
+for the year ended March 31, 2019
+Notes to the Consolidated Financial Statements
+227
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+Obligation in respect of defined benefit plan and
+other long term employee benefit plans are actuarially
+determined as at the year end using the ‘Projected Unit
+Credit' method. Gains and losses on changes in actuarial
+assumptions relating to defined benefit obligation are
+recognised in other comprehensive income whereas gains
+and losses in respect of other long term employee benefit
+plans are recognised in the consolidated statement of
+profit and loss.
+Actuarial valuation for compensated absences is done
+as at the year end and the provision is made as per the
+Parent and Indian subsidiaries rules with corresponding
+charge to the consolidated statement of profit and loss
+amounting to 446.7 Million (March 31, 2018 gain
+of 51.4 Million) and it covers all regular employees.
+Major drivers in actuarial assumptions, typically, are years
+of service and employee compensation.
+Other long term benefit plan
+iv) Salary risk - The present value of the defined benefit
+plan liability is calculated by reference to the future
+salaries of plan participants. As such, an increase in
+the salary of the plan participants will increase the
+plan's liability.
+iii) Longevity risk - The present value of the defined
+benefit plan liability is calculated by reference to the
+best estimate of the mortality of plan participants
+both during and after their employment. An increase
+in the life expectancy of the plan participants will
+increase the plan's liability.
+ii) Interest rate risk - A decrease in the bond interest
+rate will increase the plan liability. However, this will
+be partially offset by an increase in the return on the
+plan's debt investments.
+will create a plan deficit. However, the risk is partially
+mitigated by investment in LIC managed fund.
+i) Investment risk - The present value of the defined
+benefit plan liability is calculated using a discount
+rate determined by reference to the market yields on
+government bonds denominated in Indian Rupees.
+If the actual return on plan asset is below this rate, it
+These plans typically expose the Parent and Indian
+subsidiaries to actuarial risks such as: investment risk,
+interest rate risk, longevity risk and salary risk.
+Risks
+The Parent and Indian subsidiaries has an obligation
+towards pension, a defined benefit retirement plan, with
+respect to certain employees, who had already retired
+before March 01, 2013, will continue to receive the
+pension as per the pension plan.
+b) Pension fund
+In respect of Gratuity, a defined benefit plan,
+contributions are made to LIC's Recognised Group
+Gratuity Fund Scheme. It is governed by the Payment of
+Gratuity Act, 1972. Under the Gratuity Act, employees
+are entitled to specific benefit at the time of retirement
+or termination of the employment on completion of five
+years or death while in employment. The level of benefit
+provided depends on the member's length of service
+and salary at the time of retirement/termination age.
+Provision for gratuity is based on actuarial valuation
+done by an independent actuary as at the year end.
+Each year, the Parent and Indian subsidiaries reviews the
+level of funding in gratuity fund. The Parent and Indian
+subsidiaries decides its contribution based on the results
+of its annual review. The Parent and Indian subsidiaries
+aims to keep annual contributions relatively stable at a
+level such that the fund assets meets the requirements of
+gratuity payments in short to medium term.
+Defined benefit plan
+(57.3)
+1,677.4
+30,278.8
+USD 52.2
+Forward contracts
+USD
+Sell
+CAD
+USD 69.5
+USD 53.4
+Forward contracts
+USD
+Sell
+HUF
+USD 4.2
+USD 4.5
+Forward contracts
+RUB
+USD 6.8
+NIS
+Sell
+USD
+USD
+Buy
+INR
+USD 100.0
+Interest rate swaps (Floating to fixed)
+USD
+Buy
+Sell
+USD
+USD 150.0
+Interest rate swaps (Floating to fixed)
+USD
+Buy
+USD
+USD 125.0
+Forward contracts
+USD 50.0
+RON
+RON 15.2
+RON 4.8
+SUN
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+NOTE: 48 GOODWILL (NET):
+Goodwill acquired in business combination is allocated, at acquisition, to the cash generating units (CGUs) that are expected
+to benefit from that business combination. The carrying amount of goodwill has been allocated as follows:
+i)
+220 Sun Pharmaceutical Industries Ltd.
+Goodwill in respect of:
+Sun Pharma Japan Ltd.
+Taro Pharmaceutical Industries Ltd.
+Terapia SA
+Ranbaxy Farmaceutica Ltda.
+25,594.4
+As at
+March 31, 2019
+in Million
+As at
+March 31, 2018
+23,564.4
+Sun Pharmaceutical Industries, Inc.
+Sun Farmaceutica do Brasil Ltda.
+Currency options
+Annual Report 2018-19
+For the year ended March 31, 2019 and March 31, 2018, every 50 basis point decrease in the floating interest rate
+component applicable to its loans and borrowings would increase the Group's profit by approximately 330.7 Million and
+* 162.2 Million respectively. A 50 basis point increase in floating interest rate would have led to an equal but opposite effect.
+Commodity rate risk
+Forward contracts
+RON
+Buy
+RUB
+RON 6.9
+Forward contracts
+Currency swaps
+USD
+Exposure to market risk with respect to commodity prices primarily arises from the Group's purchases and sales of active
+pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients. These are
+commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the Group's raw
+materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Group's active
+pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest portion of the
+Group's cost of revenues. Commodity price risk exposure is evaluated and managed through operating procedures and
+sourcing policies. As of March 31, 2019, the Group had not entered into any material derivative contracts to hedge exposure
+to fluctuations in commodity prices.
+Sell
+USD 20.0
+USD
+Sell
+RON
+USD 9.1
+Interest rate risk
+The Group has loan facilities on floating interest rate, which exposes the Group to risk of changes in interest rates. The Group
+monitors the interest rate movement and manages the interest rate risk by evaluating interest rate swaps etc. based on the
+market / risk perception.
+RON
+USD 50.0
+USD 3.6
+USD 50.0
+INR
+USD 120.5
+Forward contracts
+USD
+Buy
+JPY
+USD 17.4
+Sell
+USD 31.7
+USD
+Sell
+NIS
+USD 57.0
+Derivatives not designated as hedges
+Forward contracts
+USD
+Forward contracts
+Buy
+USD
+ZAR 480.0
+3,635.8
+FINANCIAL STATEMENTS > Consolidated
+219
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts:
+Currency
+Forward contracts
+Buy / Sell
+As at
+March 31, 2019
+Amount in Million
+As at
+March 31, 2018
+Derivatives designated as hedges
+Forward contracts
+ZAR
+Sell
+INR
+Cross Currency
+387.4
+INR
+USD 18.2
+Sell
+USD
+USD 9.8
+Forward contracts
+ZAR
+Sell
+USD
+EUR
+USD 21.0
+CAD
+Sell
+USD
+Currency cum interest rate swaps
+USD
+Buy
+INR
+Forward contracts
+USD 27.3
+Forward contracts
+USD 4.9
+Forward contracts
+AUD
+Sell
+USD
+USD 7.4
+USD 8.2
+Forward contracts
+USD 2.8
+RUB
+USD
+USD 4.5
+USD 5.0
+Forward contracts
+GBP
+Sell
+USD
+Sell
+427.1
+66.0
+125.5
+Effect of deferred tax expense on unrealised profits
+Effect of deferred tax expense exceptional item (Refer note 74)
+Tax payable under MAT
+Others
+Income tax expense recognised in consolidated statement of profit and loss
+1,609.4
+(767.5)
+Effect of difference between Indian and foreign tax rates and non taxable subsidiaries
+(1,653.4)
+2,544.5
+911.0
+2,510.0
+1,818.1
+1,193.2
+6,008.8
+9,110.4
+856.0
+NOTE: 51 DEFERRED TAX
+3,623.5
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+12,040.0
+Effect of deduction claimed under chapter VI of Income Tax Act, 1961
+(6,841.0)
+(9,009.3)
+Effect of income that is exempt from tax
+(235.9)
+(76.4)
+(205.1)
+Effect of expenses that are not deductible in determining taxable profit
+122.5
+Incremental deduction allowed on account of research and development costs and other allowances
+(2,950.2)
+(1,690.0)
+Effect of income which is taxed at special rates
+(1,129.4)
+(2,236.0)
+1,371.0
+13,314.4
+i) Deferred tax assets (Net)
+Profit/(loss)
+movement
+Intangible assets
+Others
+3,866.4
+(89.7)
+3,776.7
+3,937.7
+(1,451.5)
+6,194.5
+2,486.2
+3,635.8
+(57.3)
+26,340.3
+MAT credit entitlement
+7,517.0
+128.2
+7,517.0
+22,761.8
+Opening balance
+April 01, 2018
+2,185.4
+8,105.7
+during the year *
+in Million
+Other
+comprehensive
+income
+movement
+during the year
+*
+Closing balance
+4,009.1
+March 31, 2019
+Expenses claimed for tax purpose on payment basis
+4,703.3
+1,131.2
+(57.3)
+5,777.2
+6,245.3
+1,860.4
+Deferred tax assets
+34.608%
+Unabsorbed depreciation / carried forward losses
+Inventory and other related items
+34,789.8
+JSC Biosintez
+234.0
+247.0
+Sun Pharmaceutical Medicare Limited
+Total (A)
+1.0
+60,883.7
+1.0
+57,471.3
+3.8
+Less:
+Alkaloida Chemical Company Zrt.
+Ranbaxy Nigeria Limited
+Sun Pharmaceutical Industries Limited
+Ranbaxy Malaysia SDN. BHD.
+Total (B)
+Total (A-B)
+ii) Below is the reconciliation of the carrying amount of goodwill:
+Capital reserve in respect of:
+Opening balance
+3.3
+1,677.4
+12,311.0
+13,098.5
+34.944%
+18,425.9
+17,361.5
+382.3
+359.3
+Ranbaxy South Africa (Pty) Ltd
+Basics GmbH
+362.1
+Insite Vision Incorporated
+435.8
+595.4
+595.4
+Sun Pharmaceutical Industries Limited
+251.0
+355.9
+Add: Due to acquisitions during the year
+Zenotech Laboratories Limited
+Closing balance
+Specialty in progress
+FINANCIAL STATEMENTS > Consolidated
+221
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+NOTE : 49 DISCLOSURES MANDATED BY THE COMPANIES ACT, 2013 SCHEDULE III PART II BY WAY OF
+ADDITIONAL INFORMATION IS GIVEN IN ANNEXURE 'A'.
+NOTE: 50 INCOME TAXES
+Tax Reconciliation
+The carrying amount of goodwill are stated above. The recoverable amounts have been determined based on value in use
+calculations which uses cash flow projections covering generally a period of five years (which are based on key assumptions
+such as margins, expected growth rates based on past experience and Management's expectations/ extrapolation of normal
+increase/steady terminal growth rate) and appropriate discount rates that reflects current market assessments of time value
+of money and risks specific to these investments. The cash flow projections included estimates for five years developed
+using internal forecasts and terminal growth rate thereafter. The planning horizon reflects the assumptions for short to
+mid-term market developments. The average growth rate used in extrapolating cash flows beyond the planning period ranged
+from -10.0% to 5.5% for the year ended March 31, 2019. Discount rate reflects the current market assessment of the risks
+specific to a CGU or group of CGUs. The discount rate is estimated on the weighted average cost of capital for respective
+CGU or group of CGUs. Discount rate used ranged from 2.6% to 7.9% for the year ended March 31, 2019. The management
+believes that any reasonable possible change in key assumptions on which recoverable amount is based is not expected to
+cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit. Goodwill of
+Insite vision incorporated has been reallocated to Sun pharmaceuticals industries Inc. and now considered as a single CGU.
+Based on the impairment assessment, the Management has determined no impairment loss in the value of goodwill.
+Year ended
+March 31, 2019
+March 31, 2018
+Reconciliation of tax expense
+Profit before tax
+Add/ (less): Foreign currency translation difference
+38,102.0
+Income tax expense calculated at corporate tax rate
+Income tax rate in India (%)
+Year ended
+56,067.1
+* in Million
+55,362.2
+595.4
+1.5
+109.5
+1,319.2
+1,237.3
+27.5
+27.5
+1.4
+56.1
+1,326.0
+59.7
+59,557.7
+56,067.1
+Year ended
+March 31, 2019
+56,067.1
+3,490.6
+59,557.7
+* in Million
+1,404.2
+Year ended
+March 31, 2018
+(0.0)
+(0.1)
+(502.8)
+(0.1)
+(0.1)
+(0.0)
+(0.1)
+(1.5)
+(0.0)
+(34.3)
+(0.0)
+(34.3)
+24 Sun Pharmaceuticals Korea Ltd.
+0.0
+4.2
+(0.2)
+(0.0)
+(0.2)
+25 Sun Global Development FZE
+(0.0)
+22 Sun Global Canada Pty. Ltd.
+23 Sun Pharma Philippines, Inc.
+(15.5)
+(0.8)
+(0.1)
+(0.0)
+(3.4)
+(0.0)
+(0.0)
+(201.7)
+(178.5)
+0.1
+22.0
+0.1
+22.0
+Germany GmbH
+19 Sun Pharmaceuticals France
+(0.0)
+(27.0)
+(0.0)
+(0.0)
+(0.0)
+20 Sun Pharma Global
+21.3
+95,214.0
+(23.9) (6,362.9)*
+(6.5) (1,010.3)
+(17.5) (7,373.2)*
+FZE (Consolidated with
+a Joint venture)
+21 Sun Pharmaceuticals SA (Pty) Ltd.
+(0.0)
+(0.0)
+(0.0)
+(3.4)
+(0.5)
+0.0
+26 Sun Pharma Japan Ltd.
+0.0
+0.5
+0.0
+0.5
+31 Sun Pharma Switzerland Ltd.
+32 Sun Pharma Holdings
+4.9
+0.0
+8.2
+0.0
+8.2
+48.5 217,084.2
+0.0
+5.0
+0.0
+5.0
+33 Sun Pharma East Africa Limited
+(0.0)
+(147.0)
+0.0
+12.6
+0.0
+12.6
+34 Sun Pharma ANZ Pty Ltd
+(0.1)
+18 Sun Pharmaceuticals
+0.6
+0.0
+30
+Alkaloida Sweden AB
+(0.5)
+(2,015.8)
+(1.9)
+(516.8)
+(1.2)
+(516.8)
+27 Sun Pharma HealthCare FZE
+0.0
+198.9
+0.0
+28 Sun Laboratories FZE
+(0.0)
+(201.7)
+(150.3)
+3.8
+125.2
+0.0
+3.8
+0.3
+125.2
+29.5 132,107.7
+75.6
+20,161.1
+(19.6) (3,012.0)
+40.8 17,149.1
+29 Taro Pharmaceutical Industries
+Ltd. (TARO) (Consolidated with
+its Subsidiaries)
+0.5
+(3.2)
+(382.5)
+(3.2)
+(7.9)
+(0.0)
+(7.9)
+8
+Ranbaxy Pharmacie Generiques
+(0.6)
+(2,482.5)
+(1.4)
+(264.6)
+(0.9)
+(382.5)
+9 Ranbaxy (Malaysia) SDN. BHD.
+0.3
+1,412.0
+10 Ranbaxy Nigeria Limited
+0.0
+13.5
+73.7
+60,425.2
+2.0
+535.8
+(0.6) (158.5)
+27.9 7,447.3
+1.3
+535.8
+(0.4) (158.5)
+7.8 1,191.2
+20.5 8,638.5
+11 Sun Pharma (Netherlands)
+B.V (Formerly Ranbaxy
+(Netherlands) B.V.)
+(0.0)
+0.0
+0.0
+Sun Pharma De Venezuela, C.A.
+964.5
+0.9
+238.1
+0.6
+238.1
+Mexico S.A. DE C.V.
+456
+SPIL De Mexico S.A. DE C.V.
+0.0
+0.2
+Sun Pharmaceutical Peru S.A.C.
+(0.0)
+12 Alkaloida Chemical Company Zrt.
+13 Sun Pharmaceuticals UK Limited
+14 Sun Pharmaceutical Industries
+(158.9)
+(4.6)
+(0.0)
+(4.6)
+OOO "Sun Pharmaceutical
+(0.0)
+(203.6)
+(0.1)
+(25.9)
+(0.1)
+(25.9)
+Industries" Limited
+7
+(0.0)
+(0.0)
+10.6 47,552.6
+0.3
+Share in profit or (loss)
+Share in other
+comprehensive income
+Share in total
+comprehensive income
+S.
+Name of the entity
+No.
+2018-19
+2018-19
+(OCI)
+2018-19
+(TCI)
+2018-19
+As % of
+consolidated
+* in Million
+net assets
+As % of
+consolidated
+profit or (loss)
+* in Million
+As % of
+consolidated
+OCI
+As % of
+in
+Million
+consolidated in Million
+TCI
+17 Sun Pharmaceuticals Italia S.R.L.
+0.0
+43.0
+(0.0)
+Net Assets, i.e., total assets
+minus total liabilities
+(Annexure 'A')
+Disclosure of additional information pertaining to the Parent Company, subsidiaries,
+associates and joint ventures as per Schedule III of Companies Act, 2013:
+for the year ended March 31, 2019
+1,168.3
+(1.2)
+(0.0)
+(331.3)
+51.9 21,811.6
+(0.0)
+(0.0)
+(0.8) (331.3)
+(Australia) Pty Limited
+15 Aditya Acquisition Company Ltd.
+0.0
+14.7
+0.0
+2.4
+81.8 21,811.6
+(0.0)
+0.0
+16 Sun Pharmaceutical
+0.0
+4.1
+0.3
+71.6
+0.2
+71.6
+Industries (Europe) B.V.
+Specialty in progress
+FINANCIAL STATEMENTS > Consolidated
+237
+Notes to the Consolidated Financial Statements
+2.4
+0.3
+0.1
+0.2
+53 Ranbaxy (U.K.) Limited
+54 Ranbaxy Holdings (U.K.) Limited
+55 Ranbaxy Europe Limited
+56 Sun Pharmaceutical Holding
+USA Inc (Consolidated with its
+Subsidiaries and its Associate)
+57 Ranbaxy (Thailand) Co., Ltd.
+58 Sun Pharmaceuticals
+Morocco LLC
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+0.1
+415.5
+0.3
+77.4
+0.2
+77.4
+0.3
+1,414.1
+0.2
+60.1
+0.1
+60.1
+0.6 2,775.3
+0.0
+0.6
+0.0
+0.6
+(0.0)
+Laboratorios Ranbaxy, S.L.U.
+Be-Tabs Investments
+(Pty) Ltd
+52
+51
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Disclosure of additional information pertaining to the Parent Company, subsidiaries,
+associates and joint ventures as per Schedule III of Companies Act, 2013:
+(Annexure 'A')
+Net Assets, i.e., total assets
+minus total liabilities
+Share in profit or (loss)
+S.
+Name of the entity
+2018-19
+2018-19
+Share in other
+comprehensive income
+(OCI)
+2018-19
+(0.0)
+Share in total
+comprehensive income
+2018-19
+No.
+As % of
+consolidated
+* in Million
+net assets
+As % of
+consolidated
+profit or (loss)
+* in Million
+As % of
+consolidated
+OCI
+As % of
+in
+Million
+consolidated in Million
+TCI
+(TCI)
+SUN
+(0.0)
+12.9
+0.2
+82.4
+0.4
+154.8
+Non controlling interest in
+7.4 33,135.4
+(20.4) (5,424.4)
+(9.1) (1,400.0)
+(16.2) (6,824.4)
+all subsidiaries
+Intercompany Elimination and
+(143.3) (641,086.2)
+(111.1) (29,652.0)
+116.8 17,988.3
+(27.7) (11,663.7)
+Consolidation Adjustments
+Total
+100.0 447,226.0
+100.0 26,654.2
+100.0 15,399.9
+100.0 42,054.1
+# Includes share of loss and share of TCI, from its associate of 140.5 Million
+* Includes share of loss and share of TCI, from a joint venture of 7.5 Million
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the Parent Company, its subsidiaries, associates and
+joint ventures are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company
+eliminations / consolidation adjustments.
+Specialty in progress
+33.5
+0.1
+3.2
+0.0
+57,593.1
+21.5
+5,741.5#
+(1.5)
+(230.9)
+13.1 5,510.6#
+0.0
+219.1
+0.0
+3.2
+(0.0)
+(39.8)
+(0.0)
+0.1
+59 "Ranbaxy
+0.1
+245.8
+0.3
+82.4
+Pharmaceuticals Ukraine" LLC
+60 Pola Pharma Inc. (Consolidated
+with its Subsidiary)
+0.8
+3,514.2
+0.6
+154.8
+33.5
+238 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+178.1
+(0.0)
+(3.7)
+39 Office Pharmaceutique
+0.0
+96.1
+0.0
+6.2
+0.0
+6.2
+Industriel Et Hospitalier
+40 Basics GmbH
+0.2
+1,041.8
+0.2
+59.9
+0.1
+59.9
+41 Ranbaxy GmbH
+0.0
+1.9
+42 Ranbaxy Ireland Limited
+0.1
+543.0
+(0.0)
+(7.1)
+(3.7)
+(0.0)
+(24.1)
+(0.0)
+81.4
+35 Ranbaxy Farmaceutica Ltda.
+(0.3) (1,234.4)
+(0.9)
+(243.1)
+(0.6)
+(243.1)
+36 Sun Pharma Canada Inc.
+0.1
+251.7
+(0.1)
+(34.9)
+(0.0)
+(0.1)
+(Formerly known as Ranbaxy
+Pharmaceuticals
+Canada Inc.)
+37 Sun Pharma Egypt Ltd LLC
+0.1
+247.9
+(0.6)
+(165.1)
+(0.4)
+(165.1)
+(Formerly known as
+Ranbaxy Egypt Ltd)
+38 Rexcel Egypt LLC
+(34.9)
+(7.1)
+43 Ranbaxy Italia S.P.A.
+0.0
+1,208.0
+0.9
+232.7
+0.6
+232.7
+48 JSC Biosintez
+0.2
+788.6
+(0.6)
+(151.9)
+(0.4)
+(151.9)
+0.3
+49 Ranbaxy South Africa (Pty) Ltd
+854.5
+(0.4)
+(99.9)
+(0.2)
+(99.9)
+(Consolidated with its Subsidiary)
+50 Ranbaxy Pharmaceuticals (Pty) Ltd
+0.4
+1,702.3
+0.7
+178.1
+0.4
+0.2
+81.4
+47 AO Ranbaxy
+6.3
+11.8
+0.0
+12.6
+0.0
+12.6
+44 Sun Pharmaceutical
+(0.0)
+(170.9)
+(0.2)
+(41.5)
+(0.1)
+(41.5)
+2,654.6
+Industries S.A.C.
+0.0
+202.5
+0.2
+19.7
+0.0
+19.7
+46 Terapia SA
+1.7 7,821.8
+10.0
+2,655.9
+(0.0)
+(1.3)
+45 Ranbaxy (Poland) SP. Z O.O.
+Sun Pharma De
+Skisen Labs Private Limited
+(413.9)
+Medinstill LLC
+Considered good
+As at
+March 31, 2019
+in Million
+As at
+March 31, 2018
+283.3
+283.3
+Loans have been granted to the above entity for the purpose of its business.
+NOTE: 70
+a) Sun Pharma Global FZE, a subsidiary of the Parent Company holds 23.35% in the capital of Enceladus Pharmaceutical
+B.V. However, as Sun Pharma Global FZE does not have any 'Significant Influence' in Enceladus Pharmaceutical B.V.,
+as is required under Ind AS 28 - "Investments in Associates and Joint Ventures", the said investment in Enceladus
+Pharmaceutical B.V. has not been consolidated as an "Associate Entity".
+b) The Parent Company holds 24.91% in the capital of Shimal Research Laboratories Limited. However, as the Parent
+Company does not have any 'Significant Influence' in Shimal Research Laboratories Limited, as is required under Ind AS
+28 - "Investments in Associates and Joint Ventures", the said investment in Shimal Research Laboratories Limited has not
+been consolidated as an "Associate Entity".
+Specialty in progress
+FINANCIAL STATEMENTS > Consolidated
+233
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+NOTE: 71 Post implementation of Goods and Service Tax ("GST") with effect from July 01, 2017, revenue from contracts
+with customers is disclosed net of GST. Revenue from contracts with customers for the previous year included excise duty
+which was subsumed in GST. Revenue from contracts with customers for the year ended March 31, 2018 includes excise
+duty for the period ended June 30, 2017. Accordingly, revenue from contracts with customers for the year ended March 31,
+2019 are not comparable with year ended March 31, 2018.
+Note 72 DISCLOSURE OF A SUBSIDIARY THAT HAS NON-CONTROLLING INTEREST THAT IS
+MATERIAL TO THE GROUP
+Name of Subsidiary
+Taro Pharmaceutical Industries Ltd. and its
+subsidiaries (TARO Group)
+Principal place of
+business
+United States of
+Country of
+incorporation
+Nature*
+As at
+March 31, 2019
+As at
+March 31, 2018
+America
+Israel Beneficial ownership
+Voting power
+Interest bearing with specified repayment schedule:
+NOTE: 69 LOANS/ADVANCES DUE FROM AN ASSOCIATE
+The Company has not defaulted on repayment of loan and interest payment thereon during the year.
+NOTE: 68 DETAILS OF SECURITIES FOR CURRENT BORROWINGS ARE AS UNDER:
+Borrowings made by overseas subsidiaries are supported by the letters of awareness issued by the Parent Company.
+December 22,
+2017
+a) USD 50 Million (March 31, 2018: USD
+50 Million) equivalent to 3,454.5 Million
+(March 31, 2018: 3,246.5 Million). The loan was
+taken on September 20, 2012 and is repayable
+in 2 equal installments of USD 25 Million each.
+The first installment of USD 25 Million is due on
+September 20, 2019 and last installment of USD 25
+Million is due on September 18, 2020.
+b) USD 100 Million (March 31, 2018: USD 100 Million)
+equivalent to * 6,909.0 Million (March 31, 2018:
+* 6,493.0 Million). The loan was taken on June 04,
+2013 and is repayable in 3 installments viz., the first
+installment of USD 30 Million is due on May 31,
+2020, second installment of USD 30 Million is due on
+November 30, 2020 and last installment of USD 40
+Million is due on November 30, 2021.
+Annual Report 2018-19
+232 Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+c) USD 50 Million (March 31, 2018 : USD 50 Million)
+equivalent to 3,454.5 Million (March 31, 2018:
+* 3,246.5 Million). The loan was taken on August 11,
+2015 and is repayable on August 08, 2019.
+d) USD 10 Million (March 31, 2018: USD 26 Million)
+equivalent to 690.9 Million (March 31, 2018 :
+1,688.2 Million). The loan was taken in tranches
+of USD 16 Million on March 24, 2017 and USD
+10 Million on June 30, 2017. The first installment
+of USD 16 Million has been repaid during the year
+ended March 31, 2019 and last installment of USD 10
+Million is due on June 28, 2019.
+e) USD 30 Million (March 31, 2018: USD
+23.46%
+15.64%
+30 Million) equivalent to 2,072.7 Million
+(March 31, 2018: ₹ 1,947.9 Million). The loan was
+taken on September 08, 2017 and is repayable on
+September 07, 2020.
+was taken on October 03, 2018 and is repayable in 2
+equal installments of USD 25 Million each. The first
+installment of USD 25 Million is due on October 01,
+2021 and last installment of USD 25 Million is due on
+October 03, 2022.
+The Company has not defaulted on repayment of loan
+and interest payment thereon during the year.
+The aforementioned unsecured ECBs are availed
+from various banks at floating rate linked to Libor
+(2.96% as at March 31, 2019) and secured loan from
+department of biotechnology have been availed at a
+range from 2% to 3%.
+D Unsecured debentures:
+Nil (March 31, 2018: 5,000 Million) rated
+unsecured listed redeemable non-convertible
+debentures at a coupon rate of 7.94% p.a. were issued
+by Sun Pharma Laboratories Limited ("SPLL" - the
+wholly owned subsidiary) on December 23, 2015.
+Following are the details:
+Rated unsecured listed redeemable 5,000 Non-Convertible debentures Series 2
+(redeemed during the year)
+Face value (*)
+1,000,000
+Redemption amount
+(in Million)
+5,000.0
+Date of
+redemption
+March 22,
+2019
+Rated unsecured listed redeemable 5,000 Non-Convertible debentures Series 1
+(redeemed during the previous year)
+1,000,000
+5,000.0
+f) USD 50 Million (March 31, 2018: USD Nil) equivalent
+to 3,454.5 Million (March 31, 2018: Nil). The loan
+(i) Unsecured External Commercial Borrowings
+(ECBs) has 6 loans aggregating of USD 290 Million
+(March 31, 2018: USD 256 Million) equivalent to
+20,036.1 Million (March 31, 2018: 16,622.1
+Million). For the ECB loans outstanding as at
+March 31, 2019, the terms of repayment for
+borrowings are as follows:
+25.18%
+16.79%
+Name of Subsidiary
+(341.2)
+(14,980.2)
+(350.4)
+(14,010.4)
+43,974.4
+116,578.1
+Consolidated statement of profit and loss of TARO Group
+Year ended
+March 31, 2019
+* in Million
+Year ended
+March 31, 2018
+Total income
+Total expenses
+Profit after tax
+Total comprehensive income for the year
+Consolidated cash flows information of TARO Group
+Net cash genetrated from operating activities
+Net cash generated from / (used in) investing activities
+Net cash used in financing activities
+Dividend paid by TARO during the year of USD 500 Million (March 31, 2018: USD Nil).
+50,823.9
+45,216.7
+24,992.4
+26.101.3
+20,161.1
+16,551.7
+17,149.2
+18,691.8
+46,813.3
+100,615.7
+March 31, 2018
+As at
+As at
+March 31, 2019
+Profit allocated to non-controlling
+interests
+* in Million
+Accumulated non-controlling
+interests
+Year ended
+March 31, 2019
+Year ended
+March 31, 2018
+As at
+March 31, 2019
+As at
+March 31, 2018
+TARO Group
+Individually immaterial subsidiaries with non-controlling interests
+Total
+4,862.7
+561.7
+5,424.4
+* Held by non-controlling interest
+4,284.6
+183.4
+36,811.1
+2,030.5
+4,468.0
+33,135.4
+38,841.6
+The summarised consolidated financial information of TARO Group before inter-company eliminations:
+Consolidated balance sheet of TARO Group
+Non-current assets
+Current assets
+Non-current liabilities
+Current liabilities
+* in Million
+30,992.5
+2,142.9
+Year ended
+Unsecured
+Secured
+270.0-562.5
+450.3
+1.5
+(11,790)
+270.0-562.5
+324.9
+(93,151) 270.0-562.5
+275.0
+158,739
+562.5
+562.5
+0.9
+158,739
+562.5
+562.5
+0.9
+March 31, 2018
+Stock options
+(numbers)
+Range of
+exercise prices
+(3)
+Weighted-
+average exercise
+prices (*)
+Weighted-
+average
+remaining
+contractual life
+(years)
+401,678
+270.0-562.5
+263,680
+(years)
+remaining
+contractual life
+Weighted-
+average
+FINANCIAL STATEMENTS > Consolidated
+229
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+NOTE: 57 Taro Pharmaceutical Industries Ltd and its Israeli subsidiaries are required to make severance or pension
+payments to dismissed employees and to employees terminating employment under certain other circumstances.
+Deposits are made with a pension fund or other insurance plans to secure pension and severance rights for the
+employees in Israel.
+NOTE: 58 EMPLOYEE SHARE-BASED PAYMENT PLANS
+The Company operates employee stock option scheme namely, SUN Employee Stock Option Scheme-2015 (SUN-ESOS
+2015) for the grant of stock options to the eligible personnel. Options are granted at the discretion of the Committee to
+selected employees depending upon certain criterion. Each option comprises one underlying equity share.
+The movement of the options (post split) granted under SUN-ESOS 2015
+Outstanding at the commencement of the year
+Exercised during the year $
+Lapsed during the year
+Outstanding at the end of the year *
+462.9
+Exercisable at the end of the year
+$ Weighted average share price on the date of exercise 492.6
+Outstanding at the commencement of the year
+Exercised during the year $
+Lapsed during the year
+Outstanding at the end of the year
+Exercisable at the end of the year
+* Includes options exercised, pending allotment
+$ Weighted average share price on the date of exercise * 565.1
+March 31, 2019
+Stock options
+(numbers)
+Range of
+exercise prices
+(3)
+Weighted-
+average exercise
+prices (*)
+* Includes options exercised, pending allotment
+(i) Loan of USD Nil equivalent to * Nil (March 31,
+2018: USD 16.7 Million equivalent 1,086.5 Million
+[Included in non-current borrowing March 31,
+2019: Nil (March 31, 2018: 1,035.3 Million)
+and March 31, 2019: Nil (March 31, 2018: 51.2
+Million) in current maturities of long term debt], which
+has been repaid in current year.
+1.9
+270.0-562.5
+1,015.3
+50,165.4
+* Includes provision for trade commitments, discounts, rebates, price reductions, product returns, chargeback, medicaids, contingency provision and clawback.
+^ Includes reversal of provision towards supply of pharmaceutical products at a discounted price. (Refer note 65)
+NOTE: 62 In respect of an antitrust litigation, relating to a
+product Modafinil, the Company and one of its wholly-owned
+subsidiaries had previously entered into settlements with
+certain plaintiffs (Apotex Corporation, Retailer Purchasers
+and end-payor plaintiffs) for an aggregate amount of USD
+150.5 Million. The equivalent Indian rupee liability of
+*9,505.0 Million and 240.0 Million was provided in the
+books of account in year ended March 31, 2018. The amount
+of 9,505.0 Million was disclosed as an exceptional item.
+During the current financial year, the Company has entered
+into settlement agreement with the Direct Purchaser
+Plaintiffs; while continuing to litigate as well as negotiate
+the case with the remaining one plaintiff. The Company has
+accounted for 12,143.8 Million towards the settlement
+agreement and a likely amount payable to remaining plaintiff
+in the antitrust litigation relating to the product Modafinil.
+NOTE: 63
+a) Since the US-FDA import alert at Karkhadi facility in
+March 2014, the Company remained fully committed
+to implement all corrective measures to address the
+observations made by the US-FDA with the help of
+third party consultant. The Company has completed
+all the action items to address the US-FDA warning
+letter observations issued in May 2014. It is continuing
+to work closely and co-operatively with the US-FDA
+to resolve the matter for lifting the import alert.
+The contribution of this facility to Company's revenues is
+not significant.
+b) The US-FDA, on January 23, 2014, had prohibited using
+API manufactured at Toansa facility for manufacture of
+finished drug products intended for distribution in the
+U.S. market. Consequentially, the Toansa manufacturing
+facility was subject to certain provisions of the consent
+decree of permanent injunction entered in January 2012
+by erstwhile Ranbaxy Laboratories Ltd (which was merged
+with Sun Pharmaceutical Industries Ltd in March 2015).
+In addition, the Department of Justice of the USA ('US
+DOJ'), United States Attorney's Office for the District of
+New Jersey had also issued an administrative subpoena
+dated March 13, 2014 seeking information. The Company
+is continuing to fully co-operate and provide requisite
+information to the US DOJ.
+c) In December 2015, the US-FDA issued a warning
+letter to the manufacturing facility at Halol.
+Post the November 2016 inspection, the US-FDA had
+re-inspected the Halol facility and cleared the Halol
+site from the warning letter in June 2018. Since then,
+the US-FDA has started approval of products filed from
+Halol facility.
+d) In September 2013, the US-FDA had put the Mohali
+facility under import alert and was also subjected to
+certain provisions of the consent decree of permanent
+injunction entered in January 2012 by erstwhile
+Ranbaxy Laboratories Ltd (which was merged with
+Sun Pharmaceutical Industries Ltd in March 2015).
+In March 2017, the US-FDA lifted the import alert
+and indicated that the facility was in compliance with
+the requirements of cGMP provisions mentioned in
+the consent decree. The Mohali facility continues to
+demonstrate sustainable cGMP compliance as required
+by the consent decree. The Company continues to
+manufacture and distribute products to the U.S from
+this facility.
+NOTE: 64 The Group vide its press release dated
+January 22, 2019, had announced the transition of India
+domestic formulations distribution business from Aditya
+Medisales Limited (AML), to a wholly owned subsidiary of
+Specialty in progress
+FINANCIAL STATEMENTS > Consolidated
+231
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Sun Pharma Laboratories Limited. Accordingly, a new wholly
+owned subsidiary, Sun Pharma Distributors Limited (SPDL),
+was incorporated on March 19, 2019. The phased transition
+to SPDL will be completed post receipt of all requisite
+regulatory approvals. During the quarter ended March 31,
+2019, the Group pursuant to this decision has taken over
+its unsold inventory amounting to 7161.5 Million from
+AML. The above-mentioned transition and change in
+distribution arrangement has led to one-time reduction in
+sales and consequent reduction in profit for the year ended
+on March 31, 2019. Pending receipt of regulatory approvals
+by SPDL in different jurisdictions for sale of pharmaceutical
+products, AML would act as an agent for the India domestic
+formulation business.
+NOTE: 65 On February 14, 2014, an agreement ("supply
+contract") was entered with Atlas Global Trading ("Atlas"),
+wherein, in lieu of Atlas agreeing to bear damages to the tune
+of USD 400 Million on account of patent infringement of
+generic version of "Protonix”, the Company agreed to supply
+pharmaceutical products at a discounted price for a specified
+period. Accordingly, a provision towards estimated liability
+was accounted for in FY 2013-14.
+However, due to US-FDA CGMP issues at SPIL's Halol facility,
+the Company was not able to adhere to the agreed supply
+schedule. Therefore, in FY 2017-18, Sun Pharma Global
+FZE, a wholly owned subsidiary, had funded Atlas towards
+this non-fulfilment of supply obligations. The said funding
+was included in Loans schedule of the Group's FY 2017-18
+consolidated financial statements.
+During the current financial year, the parties agreed that
+Atlas would assign the rights and obligation under the supply
+contract to Sun Laboratories FZE, wholly owned subsidiary.
+Consequently, on March 27, 2019, Atlas assigned its rights
+and obligations arising from this supply contract to a wholly
+owned subsidiary of the Company on the same terms and
+conditions and settled the loan. Accordingly, provision
+towards supply of pharmaceutical products at a
+discounted price and the rights and obligations acquired
+by the subsidiary has been eliminated in the consolidated
+financial statements.
+NOTE: 66 Pursuant to the scheme of arrangement,
+as approved by the National Company Law Tribunal,
+Ahmedabad Bench on October 31, 2018, unbranded
+generic pharmaceutical undertaking of Sun Pharma Global
+FZE, a wholly owned subsidiary, has been transferred to
+the Company w.e.f April 01, 2017. Consequently, effect of
+the scheme including the tax impact has been given in the
+consolidated financial statements in accordance with Ind AS
+103 - Business Combinations. The comparatives have been
+restated to give effect to the merger.
+NOTE: 67 DETAILS OF LONG-TERM BORROWINGS
+AND CURRENT MATURITIES OF LONG-TERM DEBT
+AND FINANCE LEASE OBLIGATIONS [INCLUDED
+UNDER OTHER FINANCIAL LIABILITIES (CURRENT)]
+A Secured term loan from other parties:
+Secured term loan from department of biotechnology
+of 108.2 Million (March 31, 2018: 108.2 Million) has
+been secured by hypothecation of movable assets of
+the Parent Company. The loan is repayable in 10 equal
+half yearly installments commencing from December 14,
+2019, last installment is due on June 14, 2024.
+B Lease obligations of 1,346.4 Million (March 31, 2018:
+* 1,261.9 Million) [included in non-current borrowing
+March 31, 2019: 997.4 Million (March 31, 2018:
+1,033.4 Million) and March 31, 2019: 349.0 Million
+(March 31, 2018: 228.5 Million) in current maturities
+of long term finance lease obligations] repayable by FY
+2020-24 is secured against assets taken on finance lease.
+C Term loan from banks:
+2,044.7
+26,989.0
+265.8
+(73,573.0)
+(92,913.1)
+46.7
+480.5
+488.1
+450.3
+1.5
+450.3
+1.5
+NOTE: 59 Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with
+Schedule VII thereof: 241.5 Million (March 31, 2018: 209.6 Million).
+NOTE: 60 The Group does not have any material associates or joint ventures warranting a disclosure in respect of individual
+associate or joint venture. The Group's share of other comprehensive income is Nil (March 31, 2018: Nil) in respect
+of such associates and joint ventures. The unrecognised share of loss of Nil (March 31, 2018: Nil) in respect of such
+associates and joint ventures.
+Annual Report 2018-19
+230 Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+(18,893)
+(119,105) 270.0-562.5
+263,680 270.0-562.5
+263,680 270.0-562.5
+Notes to the Consolidated Financial Statements
+NOTE: 61 In respect of any present obligation as a result of a past event that could lead to a probable outflow of resources,
+provision has been made, which would be required to settle the obligation. The said provisions are made as per the best
+estimate of the management and disclosure as per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has
+been given below:
+Year ended
+March 31, 2019
+Product and
+Sales related
+50,165.4
+* in Million
+Year ended
+March 31, 2018
+Product and
+Sales related *
+46,903.6
+Opening balance
+Add: Provision for the year
+Add: Unwinding of discounts on provisions
+Less: Utilisation/settlement/reversal^
+Add/(less): Foreign currency exchange fluctuation
+Closing balance
+67,645.3
+75,553.7
+for the year ended March 31, 2019
+3
+March 31, 2019
+Year ended
+March 31, 2018
+67
+0.0
+11.8
+0.0
+0.3
+0.0
+0.3
+Private Limited
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+Softdeal Trading Company
+0.0
+11.2
+0.0
+0.3
+0.0
+0.3
+00
+Private Limited
+Universal Enterprises
+Private Limited
+150
+0.5
+0.0
+0.5
+4 Neetnav Real Estate
+Private Limited
+Realstone Multitrade
+0.0
+0.9
+(0.0)
+(0.6)
+(0.0)
+(0.6)
+Sun Pharma Laboratories Limited
+43.5 194,396.9
+12.3
+0.0
+3,280.9
+36.1
+7.9
+3,317.0
+0.0
+12.7
+0.0
+1.2
+0.0
+1.2
+0.7
+2,921.3
+0.0
+0.2
+Private Limited
+5.3
+(0.0)
+12 Caraco Pharmaceuticals
+(0.0)
+(0.1)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+Private Limited
+Foreign
+1
+Sun Pharmaceutical
+0.3
+1,385.7
+0.9
+236.6
+0.6
+236.6
+(Bangladesh) Limited
+2
+Sun Farmaceutica Do Brasil Ltda.
+(0.6)
+(2,476.3)
+(1.6)
+(413.9)
+(1.0)
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+(0.0)
+(0.0)
+9
+Sun Pharmaceutical
+(0.1)
+(484.7)
+(1.5)
+(402.1)
+0.0
+1.3
+(1.0)
+(400.8)
+(0.0)
+Medicare Limited
+Zenotech Laboratories Limited
+0.3
+1,350.3
+(0.8)
+(203.1)
+0.0
+0.1
+(0.5) (203.0)
+11
+Sun Pharma Distributors Limited
+0.0
+1.4
+10
+* in Million
+Faststone Mercantile Company
+Green Eco
+Other non-current liabilities
+Trade payables
+8.9
+1,884.9
+Other current liabilities
+Provision
+Current tax liabilities
+Total
+Net worth
+Total identifiable assets at fair value
+Capital reserve
+Total purchase price
+136.7
+2,233.1
+1.3
+4,264.9
+3,402.2
+3,174.2
+228.0
+From the date of acquisition, Pola Pharma Inc. has contributed
+revenue of * 1,673.1 Million and profit before tax of * 173.6
+Million to the Group. If the business combinations had taken
+place at the beginning of the year, revenue would have been
+* 7,733.2 Million and the profit before exceptional item and
+tax would have been 292.6 Million.
+NOTE : 77 USE OF ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
+The preparation of the Group's financial statements requires the management to make judgements, estimates and
+assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,
+and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and underlying
+assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which
+the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation
+uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts
+recognised in the consolidated financial statements is included in the following notes:
+a) Litigations (Refer note 2 (n) and note 40)
+b) Revenue (Refer note 2 (o))
+c) Impairment of goodwill and other intangible assets (Refer note 2 (g), (h) and 48)
+Specialty in progress
+FINANCIAL STATEMENTS > Consolidated
+Liabilities
+7,667.1
+217.3
+455.2
+23,010.1
+17,986.5
+21,318.0
+(15,576.7)
+(41,189.7)
+(6,896.6)
+Annual Report 2018-19
+234 Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Notes to the Consolidated Financial Statements
+NOTE: 73 The Board of Directors of the Company at its
+meeting held on May 25, 2018, had approved the Scheme
+of Arrangement between the Company, Sun Pharma
+(Netherlands) B.V. and Sun Pharmaceutical Holdings USA
+Inc. (both being wholly owned subsidiaries of the Company)
+which inter-alia, envisages spin-off w.e.f. April 01, 2017 of
+the specified investment undertaking 1 and 2 (as defined in
+the scheme of Arrangement) of the Company. The scheme
+shall be effective post receipt of requisite approvals and
+accordingly, the consolidated financial statements do not
+reflect the impact, if any, on account of the schemes.
+NOTE : 74 Tax expense (exceptional) for the year ended
+March 31, 2018 includes deferred tax assets of 2,585.7
+Million created on difference on tax and book value on
+intra-group transfer of certain intangibles. Further, it also
+includes an impact of 5,130.2 Million on account of
+re-measurement of the group's deferred tax assets as a result
+of the Tax Cut and Jobs Act enacted in United States of
+America on December 22, 2017.
+NOTE : 75 RELATED PARTY DISCLOSURES (IND AS-
+24) - AS PER ANNEXURE 'B'.
+235
+NOTE: 76 BUSINESS COMBINATIONS
+Pola Pharma Inc., Japan became a step down subsidiary
+of the Company with effect from January 01, 2019.
+Accordingly current year numbers includes Pola Pharma Inc.
+and hence are not comparable to the previous year numbers.
+The business acquisition was conducted by entering into
+a share purchase agreement for cash consideration of
+* 228.0 Million.
+The following assets and liabilities recognised as the date
+of acquisition on the basis of provisional purchase price
+allocation (at fair value).
+Assets
+Property, plant and equipment
+Other intangible assets
+Deferred tax assets
+Inventories
+Trade receivables
+Cash and cash equivalents
+Other current assets
+Total
+* in Million
+1,812.0
+3.2
+712.9
+1,462.4
+3,004.1
+Pola Pharma Inc.
+Development Centre Limited
+Notes to the Consolidated Financial Statements
+NOTE: 78 On November 23, 2016, Taro announced that its Board of Directors authorised a USD 250 Million share
+repurchase of ordinary shares, which was completed on January 11, 2019. Under the program, Taro bought back 2,493,378
+of its ordinary shares in open market transactions at an average price of USD 100.28 per share. During the year ended
+March 31, 2019, the Taro repurchased 888,719 shares through the November 2016 program at an average price of
+USD 95.05 per share.
+Share in other
+comprehensive income
+(OCI)
+2018-19
+Share in total
+comprehensive income
+(TCI)
+2018-19
+consolidated in Million
+net assets
+Parent Entity - Sun Pharmaceutical
+51.1 228,436.1
+As % of
+consolidated
+profit or (loss)
+30.7
+* in Million
+As % of
+consolidated
+OCI
+As % of
+in
+Million
+consolidated in Million
+TCI
+8,166.0
+11.9
+1,837.4
+23.8 10,003.4
+1
+2
+3
+Industries Limited
+Subsidiaries
+Indian
+2018-19
+As % of
+2018-19
+No.
+NOTE: 79 In March 2018, Taro reached a settlement with the tax authority, under which Taro is obligated to pay a reduced
+tax assessment of USD 15.0 Million, and Taro was permitted to record the unutilised capital loss, transfer intellectual property
+from Taro Pharmaceuticals North America, Inc. to Taro Pharmaceutical Industries Ltd. (Taro) and Taro Pharmaceutical Inc.
+and reorganise assets held by Taro subsidiaries without triggering an Israeli tax event (the "Settlement"). The Settlement
+settled all tax disputes between the parties for the tax years 2010 through 2014 as well as related tax issues with respect to
+the tax years 2015 through 2016, which years were not subject to the disputes.
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Mumbai, May 28, 2019
+C. S. MURALIDHARAN
+Chief Financial Officer
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+for the year ended March 31, 2019
+SUDHIR V. VALIA
+Wholetime Director
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+Annual Report 2018-19
+236 Sun Pharmaceutical Industries Ltd.
+SUN
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Disclosure of additional information pertaining to the Parent Company, subsidiaries,
+associates and joint ventures as per Schedule III of Companies Act, 2013:
+(Annexure 'A')
+Net Assets, i.e., total assets
+minus total liabilities
+Share in profit or (loss)
+S.
+Name of the entity
+SUNIL R. AJMERA
+Company Secretary
+PHARMA
+for the year ended March 31, 2019
+239
+MXN
+3.58
+0.2
+0.2
+100.00%
+Sun Pharmaceutical Peru S.A.C.
+13.02.2002
+27.06.2006
+20.79
+0.0 (163.3)
+0.1
+163.4
+(0.8)
+(0.8)
+PEN
+99.33%
+SPIL De Mexico S.A. DE C.V.
+264.0
+68,154.2
+3,425.9
+9,073.7
+Sun Pharma De Mexico S.A. DE C.V.
+03.12.2002
+MXN
+3.58
+75.00%
+3.6
+53.1
+52,995.9 4,411.1 (247.8)
+1,278.0 (325.1)
+1,253.7
+369.1
+4,658.9
+68.4 (393.5)
+100.00%
+100.00%
+105.1
+943.9 1,000.6
+OOO "Sun Pharmaceutical
+12.11.2007
+RUB
+0.0
+(0.0)
+(0.0)
+100.00%
+24.11.2008
+USD
+0.0
+69.09
+904.7 3,519.5
+235.8
+1,564.1
+(45.3)
+(6.1)
+(39.2)
+2,379.0
+(0.0)
+0.0
+0.02
+1.07
+0.1
+(183.2)
+29.7
+212.8
+(27.3)
+(4.3)
+(22.9)
+100.00%
+Industries" Limited
+9
+10
+Sun Pharma De Venezuela, C.A.
+Chattem Chemicals Inc.
+06.11.2011
+VES
+98.7 (2,568.5) 956.1
+17.71
+BRL
+22.05.2009
+Name of the Subsidiary Company
+No
+subsidiary
+Reporting
+Currency
+Rate Capital
+Reserve
+Investment
+Total
+Total
+Assets Liabilities
+Other than
+Investment
+in Subsidiary
+Turnover
+Profit
+/ (Loss)
+before
+Taxation
+Provision
+for
+Taxation
+Profit
+/ (Loss)
+after
+was acquired
+Date since
+when
+Sr
+in Million
+13.0
+283.3
+3.4
+3.4
+1,156.3
+213.0
+8.7
+1,147.6
+0.1
+212.9
+Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term employee
+benefits recognised as per Ind AS 19 - 'Employee Benefits' in the consolidated financial statements. As these employee benefits are lump sum
+amount provided on the basis of actuarial valuation, the same is not included above and there is no share-based payments to key managerial
+personnel of Company.
+Specialty in progress
+PART "A": Subsidiaries
+FORM AOC-1
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint ventures
+FINANCIAL STATEMENTS > Consolidated
+Proposed
+Dividend
+100.00%
+Taxation
+Green Eco
+398.0
+164.3
+233.7
+% of
+Shareholding
+100.00%
+72.50%
+1,679.9
+(Bangladesh) Limited
+Sun Pharmaceutical Industries, Inc.
+14.06.2011
+USD
+69.09
+49,582.4 117,736.6
+Sun Farmaceutica do Brasil Ltda.
+345678
+645.7
+1,336.6 2,031.4
+49.1
+12.11.2010
+INR
+1.00
+7.0
+(6.1)
+1.6
+0.7
+(0.6)
+(0.6)
+Development Centre Limited
+2
+Sun Pharmaceutical
+29.03.2001
+BDT
+0.82
+1
+11 The Taro Development Corporation
+20.09.2010
+USD
+105.5
+898.1
+109.5
+19.8
+89.7
+100.00%
+100.00%
+Ukraine" LLC
+24.03.2015
+MAD
+7.15
+87.5
+(127.2)
+24.03.2015
+51 Sun Pharmaceuticals Morocco LLC
+52 Sun Pharmaceutical Industries S.A.C.
+53 Ranbaxy Holdings (U.K.) Limited
+62.6
+19.9
+82.5
+50 "Ranbaxy Pharmaceuticals
+24.03.2015
+UAH
+2.54
+101.5
+421.4
+128.9
+357.2
+6,137.4
+335.9
+462.4
+505.4
+11.3
+4.2
+7.1
+100.00%
+5,338.3
+3,153.2
+PEN
+377.7
+20.79
+54 Ranbaxy Pharmacie Generiques
+55 Office Pharmaceutique
+Industriel Et Hospitalier
+(41.7)
+(41.7)
+100.00%
+0.6
+0.7
+0.7
+409.8
+100.00%
+1,704.6
+(365.0)
+(365.0)
+100.00%
+135.1
+324.4
+3,637.3
+553.1
+100.00%
+33.1
+24.03.2015
+24.03.2015 EURO
+24.03.2015 EURO
+GBP
+90.00
+2,749.9
+(260.7)
+138.5
+77.48
+1,933.0 (4,415.5)
+77.48
+103.1
+(4.4)
+1,255.5
+382.7
+2,889.0
+1,154.8
+233.8
+1,295.2
+958.4
+51.9
+18.8
+90.3
+283.3
+77.48
+24.03.2015
+99.99%
+4,172.6
+(318.2)
+(318.2)
+100.00%
+14 Aditya Acquisition Company Ltd.
+21,535.5
+22.04.2007
+19.02
+0.0
+15 Sun Pharmaceutical
+29.06.2007
+EURO
+77.48
+ILS
+0.1
+2,727.5 21,535.6
+207.3
+69.09
+12 Alkaloida Chemical Company Zrt.
+13 Sun Pharmaceutical Industries
+(Australia) Pty Ltd
+05.08.2005
+USD
+69.09
+11.03.2008
+AUD
+48.92
+13,907.6 17,879.2 3,971.6
+6,167.0 41,386.0 48,252.4
+3,406.8 (2,238.5)
+5,661.5
+1,227.8
+4,433.7
+100.00%
+7,693.7
+699.5
+6,525.4
+1.4
+EURO
+14.7
+2.1
+15.2
+1,428.8
+483.1
+100.00%
+(799.7)
+207.3
+48.8
+48.8
+129.5
+100.00%
+49
+Sun Pharma East Africa Limited
+Basics GmbH
+13.06.2014
+KES
+0.68
+0.1 (105.3)
+48
+612.6
+2,404.5
+0.0 5,948.2 8,054.4 2,106.2
+0.0 2,057.0 1,257.3
+48.1
+3.1
+0.7
+7.8
+5.2
+100.00%
+46
+Pharmalucence, Inc.
+15.07.2014
+USD
+69.09
+47 PI Real Estate Ventures, LLC
+15.07.2014
+USD
+69.09
+29.9
+1,432.3
+8.4
+658.1
+0.5
+1,036.9
+650.2
+Associates
+1.7
+Others
+Revenue from contracts with customers, net of returns
+308.3
+Others
+Receiving of service
+Others
+Joint venture
+Associate
+Reimbursement of expenses paid
+Associates
+Sale of property, plant and equipment and other intangible assets
+Others
+Joint venture
+309.2
+309.2
+243
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+IND AS- 24 - "RELATED PARTY DISCLOSURES"
+Details of related party transaction:
+(Annexure 'B')
+308.3
+* In Million
+Year ended
+March 31, 2019
+March 31, 2018
+Purchase of goods
+Others
+Purchase of property, plant and equipment and other intangible assets
+Year ended
+Others
+Unconsolidated subsidiary
+Rendering of service
+1,248.6
+1,209.4
+1,144.2
+1,005.6
+29.3
+40.9
+0.5
+75.1
+41.5
+68.4
+15.9
+5.7
+3.9
+21.7
+162.9
+277.4
+0.5
+277.4
+Joint venture
+Others
+Unconsolidated subsidiary
+Reimbursement of expenses received
+Others
+Unconsolidated subsidiary
+Loans / deposit given
+Others
+Associate
+1,035.2
+650.2
+73,709.0
+79,876.2
+73,709.0
+79,876.2
+FINANCIAL STATEMENTS > Consolidated
+Specialty in progress
+^Solares Therapeutic Private Limited and Virtuous Finance Private Limited have been amalgamated with Shanghvi Finance Private Limited w.e.f.
+October 23, 2018
+Wholetime Director
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the Parent Company, its subsidiaries, associates and
+joint ventures are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company
+eliminations/consolidation adjustments.
+Annual Report 2018-19
+242 Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Notes to the Consolidated Financial Statements
+** With effect from July 27, 2017 Zenotech Laboratories Limited has cease to be an associate and has become subsidiary of Sun Pharmaceutical
+Industries Limited.
+for the year ended March 31, 2019
+Names of related parties where there are transactions and description of relationships
+a
+Key Managerial Personnel (KMP)
+b
+Dilip S. Shanghvi
+Sudhir V. Valia
+IND AS- 24 - "RELATED PARTY DISCLOSURES"
+* Includes share of profit and share of TCI, from a joint venture of 7.6 Million
+# Includes share of loss and share of TCI, from its associates and a joint venture of 382.7 Million
+100.0 25,711.8
+(10.0)
+(477.7)
+(19.3) (4,945.7)
+all subsidiaries
+Intercompany Elimination and
+(151.9) (641,783.8)
+44.7 9,385.7
+26.1 1,242.3
+41.2 10,628.0
+Consolidation Adjustments
+Total
+100.0 421,982.7
+100.0 20,957.0
+100.0
+4,754.8
+Sailesh T. Desai
+62.2
+Israel Makov
+Relatives of Key Managerial Personnel
+Artes Biotechnology GmbH
+S&I Ophthalmic LLC [Refer note 39(x)]
+Associates
+Zenotech Laboratories Limited [Refer note 39 (g)]
+scPharmaceuticals Inc. [Refer note 39 (p)]
+Medinstill LLC
+Joint Venture
+Medinstill Development LLC
+Dr. Py Institute LLC
+Unconsolidated Subsidiary
+Foundation for Disease Elimination and Control of India
+Managing Director
+Wholetime Director
+Wholetime Director
+(Annexure 'B')
+Chairman and Non-Executive Director
+Trumpcard Advisors and Finvest LLP
+Shanghvi Finance Private Limited^
+Dhendai Tea and Industries Private Limited
+Asepco Solutions Private Limited
+Aalok Shanghvi
+Vidhi Shanghvi
+C Others (Entities in which the KMP and Relatives of KMP have control or significant influence)
+Makov Associates Limited
+d
+e
+f
+Shantilal Shanghvi Foundation
+Sun Pharma Advanced Research Company Limited
+Sun Petrochemicals Private Limited
+Alfa Infraprop Private Limited
+Sidmak Laboratories (India) Private Limited
+Ramdev Chemicals Private Limited
+United Medisales Private Limited
+Aditya Medisales Limited
+PV Power Technologies Private Limited
+Kalyansundaram Subramanian
+0.5
+110.1
+178.3
+75.0
+20.0
+* Remuneration to key managerial personnel includes the refund received from key managerial personnel in respect of excess remuneration paid for
+financial year 2014-15, 2015-16 and 2016-17 in March 31, 2018.
+Annual Report 2018-19
+244 Sun Pharmaceutical Industries Ltd.
+SUN
+Others
+PHARMA
+for the year ended March 31, 2019
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+Balance outstanding as at end of the year
+Receivables
+Others
+Payables
+Notes to the Consolidated Financial Statements
+42.8
+48.8
+Unconsolidated subsidiary
+239.6
+2.5
+2.5
+230.8
+8.8
+271.3
+237.7
+246.2
+217.6
+Relatives of Key managerial personnel
+25.1
+20.1
+Donation
+123.8
+62.8
+Associates
+2.5
+Joint venture (March 31, 2019: * 48,558)
+Relatives of Key managerial personnel
+6,091.6
+12,287.2
+355.0
+917.6
+0.9
+0.0
+12,287.2
+128.0
+0.9
+0.8
+225.2
+747.3
+0.5
+658.6
+169.5
+6,091.6
+March 31, 2018
+March 31, 2019
+Others
+Deposit given
+Others
+Associates
+Loan given
+Associate
+Advance from customer
+Others
+Advance (includes capital and supply of goods/ services)
+Others
+Associates
+(Annexure 'B')
+*In Million
+As at
+As at
+Key managerial personnel
+0.5
+2.5
+7.8
+324.7
+Interest income
+1,530.4
+1,058.7
+Associates
+19.1
+324.7
+Others
+Lease rental and hire charges
+44.3
+1,039.6
+51.0
+Others
+44.3
+51.0
+1,530.4
+Purchase of investment in associates and joint venture and unconsolidated subsidiary
+Associates
+9,912.4
+Others
+0.1
+110.0
+178.2
+0.1
+67.8
+326.4
+67.8
+326.1
+0.3
+286.8
+6,300.0
+6,300.0
+286.8
+Loans received back
+9,912.4
+Rent expense
+6.8
+Others
+SUNIL R. AJMERA
+Company Secretary
+6
+audited Balance Sheet
+47.8
+Advance received back
+Unconsolidated subsidiary
+Advance given
+Profit/(loss) for the year
+Unconsolidated subsidiary
+Others
+Remuneration/ compensation
+Key managerial personnel*
+7.8
+ܣ ܣ
+6.8
+Associate
+i. Considered in Consolidation
+ii. Not Considered in Consolidation
+(7.5)
+C. S. MURALIDHARAN
+Chief Financial Officer
+SAILESH T. DESAI
+Wholetime Director
+Mumbai, May 28, 2019
+SUDHIR V. VALIA
+Wholetime Director
+DILIP S. SHANGHVI
+Managing Director
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Specialty in progress
+(54.9)
+(562.2)
+196.4
+(0.0)
+(9.2)
+(12.3)
+(140.5)
+134.3
+(0.0)
+100.00%
+(21.3) (4,468.0)
+8.4
+56 Ranbaxy Italia S.P.A.
+JPY
+0.62
+27
+24 Sun Pharma Philippines, Inc.
+25 Sun Pharma Healthcare FZE
+26 Sun Pharmaceuticals Korea Ltd.
+Caraco Pharmaceuticals
+08.12.2011
+PHP
+01.03.2012
+1.31
+(516.1)
+25.03.2012
+USD
+69.09
+(727.9)
+247.9
+11.4
+0.0
+96.81%
+197.5
+20 Sun Global Canada Pty. Ltd.
+23.06.2009
+USD
+69.09
+0.1
+21 Sun Laboratories FZE
+23 Sun Pharma Japan Ltd.
+13.03.2011
+69.09
+846.5
+22 Sun Global Development FZE
+13.04.2011
+USD
+69.09
+USD
+64.0
+Networth attributable to Shareholding as per latest
+5
+45.00%
+195.2
+1,389.2
+579.0
+0.0
+262.0
+28.76%
+Amount of Investment in Associates/Joint Venture
+Extend of Holding %
+1,999
+NA
+28,760
+15,853
+No.
+company on the year end
+3,45,622
+40.61%
+19.99%
+18.33%
+not consolidated
+NA
+NA
+NA
+NA
+NA
+Reason why the associate/joint venture is
+4
+ΝΑ
+NA
+NA
+ΝΑ
+NA
+Description of how there is significant influence
+3
+962.2
+34.7
+285.0 94,929.0 116,673.8
+0.0
+75.4
+4.76
+ZAR
+22.10.2008
+Sun Pharma Canada Inc.
+(Formerly known as Ranbaxy
+Pharmaceuticals Canada Inc.)
+24.03.2015
+CAD
+51.41
+115.7
+136.0 1,011.4
+75
+759.7
+(32.4)
+(32.4)
+% of
+Shareholding
+100.00%
+76 Terapia SA
+24.03.2015
+2,096.0
+Taxation
+Taxation
+Taxation
+Name of the Subsidiary Company
+No
+subsidiary
+Reporting
+Currency
+Rate Capital
+Reserve
+Total
+Total
+Assets Liabilities
+was acquired
+Other than
+Investment
+in Subsidiary
+Turnover
+/ (Loss)
+before
+Provision
+for
+Profit
+/ (Loss)
+after
+Proposed
+Dividend
+RON
+Shares of Associate/Joint Ventures held by the
+16.25
+Sun Pharma (Netherlands) B.V.
+(Formerly known as Ranbaxy
+11.08.2008
+EURO
+77.48
+1.9 (153.8)
+17 Sun Pharmaceuticals France
+10.02.2009
+16 Sun Pharmaceuticals Germany GmbH
+EURO
+2.9 (29.9)
+18 Sun Pharma Global FZE
+25.11.2008
+USD
+69.09
+19 Sun Pharmaceuticals SA (Pty) Ltd.
+77.48
+Industries (Europe) B.V.
+100.00%
+67.1
+24.03.2015
+USD
+69.09
+406.2
+42,410.0
+8,479.4 11,913.5
+15,408.8 62,745.7
+3,027.9
+4,926.9
+1,271.8
+2,151.8
+11,801.9
+2,929.8
+4,717.3
+365.4 2,564.4
+2.4
+100.00%
+1,963.3
+72.1
+5.0
+77
+2
+10.09.2018
+Ltd.
+31-Dec-18
+2.5 (487.2) 3,905.4
+1.00
+INR
+16.01.2017
+83 Sun Pharmaceutical Medicare Limited
+456.9
+4,390.1
+845.9
+1.00
+INR
+27.07.2017
+Zenotech Laboratories Ltd
+82
+and Control of India
+610.3 (221.3)
+84
+Pola Pharma Inc.
+01.01.2019
+2,296.2
+3,813.0 6,171.6
+68.6 1,732.0 3,018.1
+1.5
+1.00
+INR
+19.03.2019
+Sun Pharma Distributors Limited
+86
+0.62
+JPY
+01.01.2019
+Kayaku Co., Ltd.
+85
+62.4
+0.62
+JPY
+100.00%
+(0.1)
+(2.7)
+48.8
+USD
+18.11.2016
+80 Sun Pharmaceutical Holdings USA, Inc
+Foundation for Disease Elimination
+81
+0.3
+1.07
+69.09
+RUB
+79 JSC Biosintez
+69.09
+USD
+02.11.2015
+78 Insite Vision Incorporated
+(Netherlands) B.V.)
+19.12.2016
+21.09.2016
+INR
+1.00
+3.9
+100.00%
+96.96%
+(485.5)
+6,473.0
+(48.5)
+(534.0)
+6,473.0
+2,227.1
+2.1
+100.00%
+(8.3)
+(1.9)
+(10.2)
+995.7
+4,069.0
+(499.2)
+496.5
+175.5 4,244.8
+58,291.0 58,291.0
+1.1
+5.1
+0.1
+(2.7)
+Profit
+1.5
+130.3
+1,250.2
+1,465.6
+522.8
+PHARMA
+SUN
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint ventures
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies
+(Accounts) Rules, 2014
+FORM AOC-1
+248 Sun Pharmaceutical Industries Ltd.
+in Million
+247
+17 Entities at Sr. No. 84 and 85 have been acquired on January 01, 2019. Figures shown above are from January 01, 2019 to March 31, 2019 whereas the reporting date of these two entities are December 31, 2018.
+18 The above does not include Taro Pharmaceutical Laboratories Inc., 2 Independence Way LLC, URL Pharma Pro LLC and Dungan Mutual Associates LLC as they have no operation and does not have any Assets,
+Liabilities or Equity as on the close of their financial year.
+16 scPharmaceuticals Inc. was treated as associate till March 31, 2018 and now being classified and measured as investment at fair value through other comprehensive income.
+14 With effect from March 04, 2019 Sun Pharmaceuticals Italia S.R.L. has been dissolved.
+3 Skyline LLC and One Commerce drive LLC are being consolidated with Taro Pharmaceuticals U.S.A., Inc.
+15
+13 With effect from March 25, 2019 Be-Tabs Investments (Pty) Ltd has been dissolved.
+Annual Report 2018-19
+Part "B": Associate Companies and Joint Ventures
+Joint Venture
+Associate
+Sr.
+31-Dec-18
+13.03.2014
+31.03.2017
+31-Mar-19
+31-Mar-19
+09.10.2015
+13.02.2014
+Medinstill LLC
+Tarsius Pharma
+Trumpcard
+Advisors and
+Finvest LLP
+GmbH
+31-Dec-18
+Latest audited Balance Sheet Date
+Date of acquisition
+1
+Generic Solar
+Power LLP
+Artes
+Biotechnology
+No
+Name of Associates/Joint Ventures
+12 With effect from April 01, 2018 Taro Pharmaceuticals Canada, Ltd. has been merged with Taro Pharmaceuticals Inc.
+1,217.5
+0.1
+11 With effect from April 01, 2018 Ranbaxy GmbH has been merged with Basics GmbH.
+With effect from April 19, 2018 Taro Pharmaceuticals Ireland Ltd. has been dissolved.
+(101.7)
+(8.3)
+(110.0)
+100.00%
+(75.6)
+10.8
+(0.1)
+(64.8)
+(402.1)
+(0.4)
+(402.5)
+57.56%
+(31.3)
+(31.3)
+100.00%
+(0.1)
+100.00%
+100.00%
+Note:
+With effect from May 20, 2018 Sun Pharmaceuticals UK Limited has been dissolved.
+With effect from August 22, 2018 Ranbaxy Europe Limited has been dissolved.
+9
+8
+7
+6
+5
+Books of accounts and other related records/documents of the overseas subsidiaries of the Zenotech Laboratories Limited were missing and due to non-availability of those records/information, Zenotech
+Laboratories Limited is unable to prepare consolidated accounts.
+Foundation for Disease Elimination and Control of India (FDEC), a wholly owned subsidiary incorporated in India on September 21, 2016 by the Company as part of its Corporate Social Responsibility (CSR) initiative.
+FDEC has entered into an MOU with Indian Council of Medical Research (ICMR) and Madhya Pradesh State Government to undertake the Mandla Malaria Elimination Demonstration Project with a goal to eliminate
+Malaria in the state. FDEC is a Section 8 company not considered for consolidation since it can apply its income for charitable purposes only and can raise funds/contribution independently.
+With effect from September 21, 2018 Taro Pharmaceuticals (UK) Limited has been dissolved.
+In respect of entities at Sr. Nos. 5 to 8, 50, 70, 78, 79, 84 and 85, the reporting date is as of December 31, 2018 and different from the reporting date of the Parent Company.
+Entities at Sr. No. 84 to 86 have been incorporated / acquired during the year ended March 31, 2019.
+4
+3
+2
+0.0' represents amount less than 0.05 Million and rounded off
+1
+10 With effect from September 25, 2018 Alkaloida Sweden AB has been sold.
+100.00%
+Investment
+Sr
+Ranbaxy Ireland Limited
+24.03.2015
+EURO
+77.48
+551.0
+70 AO Ranbaxy
+69
+24.03.2015
+1.07
+174.1
+71 Laboratorios Ranbaxy, S.L.U.
+24.03.2015
+EURO
+77.48
+RUB
+73
+898.2
+USD
+THB
+2.18
+66 Ohm Laboratories, Inc.
+24.03.2015
+USD
+69.09
+69.09
+16.5
+Ranbaxy Signature LLC
+24.03.2015
+USD
+69.09
+68 Ranbaxy Inc.
+24.03.2015
+67
+72 Ranbaxy (Malaysia) SDN. BHD.
+Ranbaxy Farmaceutica Ltda.
+24.03.2015
+MYR
+(341.0)
+1.0
+(342.0)
+86.16%
+1,454.2
+1.1
+1,146.0
+1.1
+10,909.9
+397.0
+83.7
+313.3
+100.00%
+636.0
+100.00%
+100.00%
+18.8
+6.4
+16.91
+1.0
+(25.1)
+11.6
+1,957.4 (543.3) 2,632.9
+77.3 125.2 257.1
+9.0 (122.1) 2,287.0
+250.3 (31.2) 1,050.1
+4,629.1 11,992.1
+756.1 756.1
+3,622.5 5,784.4
+(8.7) 547.7
+1,017.3 4,537.4
+77.5 344.1 1,605.6
+140.4 1,271.5 1,789.0
+35.7
+1,218.8
+(0.8)
+(3.9)
+(3.9)
+100.00%
+2,560.0
+73.5
+14.9
+58.6
+100.00%
+54.6
+2,400.1
+831.0
+7,346.5
+535.9
+25.2
+24.03.2015
+65 Ranbaxy (Thailand) Co., Ltd.
+0.22
+NGN
+14.5
+4.6
+9.9
+100.00%
+2,125.5
+4,792.4
+1,984.4
+204.5
+100.00%
+5,877.4
+400.7
+113.0
+287.7
+70.00%
+204.5
+1,774.2
+1,788.1
+3,812.0
+3,353.0 2,635.7
+707.8
+24.03.2015
+EURO
+77.48
+3.9
+10.0
+58
+57 Ranbaxy Pharmaceuticals (Pty) Ltd
+"Sonke Pharmaceuticals
+24.03.2015
+ZAR
+4.76
+3,330.5 (1,644.0)
+24.03.2015
+ZAR
+4.76
+9.5
+Proprietary Limited"
+398.9
+59 Ranbaxy South Africa (Pty) Ltd
+ZAR
+Rexcel Egypt LLC
+24.03.2015
+EGP
+3.98
+62 Ranbaxy (U.K.) Limited
+24.03.2015
+61
+GBP
+63 Ranbaxy (Poland) SP. Z O.O.
+24.03.2015
+PLN
+18.01
+64 Ranbaxy Nigeria Limited
+24.03.2015
+90.00
+Ranbaxy Egypt Ltd)
+LLC (Formerly known as
+100.00%
+4.76
+60 Sun Pharma Egypt Limited
+24.03.2015
+EGP
+3.98
+83.3 256.2 1,695.8
+523.7 (270.8) 543.5
+1,356.3
+1,470.4
+(324.4)
+10.5
+(334.9)
+100.00%
+290.6
+252.5 (166.8)
+(166.8)
+24.03.2015
+398.9
+67.50%
+1,263.7
+119.5
+100.00%
+47.6
+22.6
+70.2
+844.1
+(3.3)
+1,114.1
+61.7
+21,459.8
+75.5
+1.5
+22,998.8
+20.8
+5,770.1
+197.5
+5.4
+(6.8)
+(6.8)
+100.00%
+3,346.0
+1,184.0
+(0.1)
+(1.6)
+(996.8) 22,848.5
+(213.0)
+5.3
+98.6 (2,040.4) 3,828.3
+258.1
+198.9
+(3.3)
+100.00%
+5,453.3
+(207.9)
+100.00%
+131.8
+131.8
+5,405.7
+100.00%
+(0.1)
+(0.1)
+100.00%
+(0.1)
+(0.1)
+100.00%
+(6,294.2)
+(6,294.2)
+18,665.1
+44.5
+5,364.5
+(207.9)
+288.0
+225.9
+78.2
+(234.9)
+100.00%
+1,858.9
+77.5
+77.5
+(156.7)
+100.00%
+SUN
+FORM AOC-1
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint ventures
+FINANCIAL STATEMENTS > Consolidated
+* in Million
+PART "A": Subsidiaries
+PHARMA
+2,029.1
+307.6 (1,539.3) 1,329.5 2,561.2
+851.2 (1,116.2) 1,477.9 1,742.9
+48.92
+100.00%
+1,733.1
+73.4
+73.4
+100.00%
+377.1
+2,300.1
+555.4
+29.8
+525.6
+95.67%
+74 Sun Pharma ANZ Pty Ltd
+24.03.2015
+24.03.2015
+BRL
+AUD
+17.71
+62.1
+Date since
+when
+100.00%
+15.9
+364.5
+11,621.8
+1.4
+4,363.7
+6.2
+4.6
+0.2
+47.0 131,606.5 136,017.2
+69.09
+USD
+3,158.7
+20.09.2010
+69.09
+USD
+05.05.1983
+29 Morley & Company, Inc.
+0.5 194,396.4 206,018.7
+1.00
+30 Taro Pharmaceutical
+5,153.0
+45,094.0 4,172.4
+1.7
+22,073.1 21,751.2
+891.5
+0.4
+2,283.2
+340.3
+(49.1)
+389.4
+100.00%
+FINANCIAL STATEMENTS > Consolidated
+CAD
+20.09.2010
+31 Taro Pharmaceuticals Inc.
+32 Taro Pharmaceuticals U.S.A., Inc.
+33 Taro Pharmaceuticals
+Industries Ltd. (Taro).
+76.54%
+19,468.0
+100.00%
+1.3
+100.00%
+3,280.9
+INR
+762.8
+09.03.2012
+Private Limited
+20.09.2011
+100.00%
+3.7
+3.7
+0.1
+1.3
+KRW
+100.00%
+3.8
+(33.4)
+100.00%
+(440.0)
+0.0
+(440.0)
+(37.2)
+0.06
+6.1
+(1.9)
+100.00%
+(0.0)
+(0.0)
+0.1
+0.0
+(0.2)
+0.1
+1.00
+INR
+12.01.2012
+100.00%
+(0.2)
+(0.2)
+1.9
+6.1
+28 Sun Pharma Laboratories Ltd
+9.2 38,841.6
+(7.0) 4,724.3
+Ukraine" LLC
+0.0
+93.8
+0.0
+2.5
+0.0
+2.5
+Industriel Et Hospitalier
+40 Basics GmbH
+0.2
+1,024.6
+0.3
+54.1
+0.2
+54.1
+41 Ranbaxy GmbH
+39 Office Pharmaceutique
+(7.3)
+(0.0)
+(7.3)
+(0.2)
+(62.6)
+Canada Inc.)
+37 Sun Pharma Egypt Ltd LLC
+0.1
+382.7
+(0.1)
+0.0
+(22.0)
+(22.0)
+(Formerly known as
+Ranbaxy Egypt Ltd)
+38 Rexcel Egypt LLC
+(0.0)
+(18.7)
+(0.0)
+(0.1)
+2.0
+42 Ranbaxy Ireland Limited
+0.1
+USD
+69.09
+20.09.2010
+USD
+69.09
+88,546.5 117,269.9
+10.0 (1,077.3) 30,598.5 31,665.8
+0.0 25,749.0 25,756.7
+16,880.8
+20.09.2010
+7.7
+2,582.3
+39.4
+6,364.3
+76.54%
+763.6
+76.54%
+(520.4)
+76.54%
+49,113.4 18,686.5 8,946.6
+52.6 36,515.2
+803.0
+(520.4)
+(62.6)
+11,842.6
+(29.6)
+571.0
+(0.1)
+(14.7)
+(0.1)
+(14.7)
+43 Ranbaxy Italia S.P.A.
+0.0
+51.41
+0.7
+(6.5)
+(0.0)
+(6.5)
+44 Sun Pharmaceutical
+(0.0)
+(125.0)
+(0.1)
+(0.0)
+North America, Inc.
+(0.3)
+0.1
+28 Sun Laboratories FZE
+(0.1)
+(265.1)
+0.4
+79.9
+0.3
+79.9
+29 Taro Pharmaceutical Industries
+34.6
+146,191.6
+79.0 16,551.7
+45.0 2,140.0
+72.7 18,691.7
+Ltd. (TARO) (Consolidated with
+its Subsidiaries)
+30
+2.2
+0.0
+2.2
+0.0
+0.0
+180.9
+(0.0)
+(0.7)
+(0.0)
+(0.7)
+26 Sun Pharma Japan Ltd.
+Alkaloida Sweden AB
+(0.4)
+(4.6)
+(950.6)
+(3.7)
+(950.6)
+27 Sun Pharma HealthCare FZE
+0.0
+183.4
+(1,480.3)
+31 Sun Pharma Switzerland Ltd.
+32 Sun Pharma Holdings
+33 Sun Pharma East Africa Limited
+(148.8)
+(0.4)
+(73.6)
+(0.3)
+(73.6)
+(0.1)
+(348.2)
+(0.0)
+0.4
+0.3
+80.2
+(0.3) (1,103.7)
+(0.4)
+(89.2)
+(0.3)
+(89.2)
+80.2
+278.2
+(29.5)
+(29.5)
+34 Sun Pharma ANZ Pty Ltd
+35 Ranbaxy Farmaceutica Ltda.
+36 Sun Pharma Canada Inc.
+(Formerly known as Ranbaxy
+Pharmaceuticals
+0.0
+38.3
+0.1
+(0.1)
+14.3
+14.3
+0.6 2,631.0
+48.3 204,008.4
+(0.0)
+(4.7)
+(0.0)
+(4.7)
+(0.2)
+0.1
+25 Sun Global Development FZE
+34 Taro Pharmaceuticals Europe B.V.
+35 Taro International Ltd.
+EURO
+0.1
+0.2
+0.0
+(0.0)
+(0.1)
+(0.1)
+42 Softdeal Trading Company
+01.04.2012
+INR
+1.00
+0.1
+11.1
+11.3
+0.1
+0.4
+0.3
+0.1
+0.4
+0.1
+1.00
+0.1
+41
+Skisen Labs Private Limited
+01.04.2012
+INR
+1.00
+0.1
+163.6
+3,077.1
+155.7
+1.6
+0.7
+0.2
+0.5
+11.9
+0.1 2,921.3
+11.7
+(163.7)
+0.3
+Private Limited
+43
+69.36
+6.9
+2.8
+12.0
+2.3
+28.3
+8.3
+CHF
+(0.0)
+100.00%
+45 Sun Pharma Holdings
+06.08.2015
+USD
+69.09
+236,346.0 (19,203.5) 217,946.0
+803.5
+8.3
+INR
+10.06.2013
+44
+Universal Enterprises Private Limited
+31.08.2012
+INR
+1.00
+4.5
+0.8
+5.3
+Sun Pharma Switzerland Ltd.
+0.0
+(0.0)
+% of
+Shareholding
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+(0.0)
+20.09.2010
+Non controlling interest in
+40
+76.54%
+76.54%
+817.6
+100.00%
+(79.0)
+3,639.6
+383.6
+80.6
+303.0
+100.00%
+Annual Report 2018-19
+245
+PART "A": Subsidiaries
+FORM AOC - 1
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint ventures
+Specialty in progress
+328.7
+97.2
+216.6
+(2.5)
+(2.5)
+425.9
+1,034.2
+77.48
+20.09.2010
+USD
+69.09
+36 Dusa Pharmaceuticals, Inc.
+19.12.2012
+USD
+246
+69.09
+05.02.2013
+USD
+69.09
+1.4
+(0.1)
+1.8
+0.0 944.3 1,601.8
+0.7 10,316.1 12,421.8
+0.1 8,950.6 8,871.7
+0.5
+657.5
+2,105.0
+1,771.1
+6,503.4
+37 Mutual Pharmaceutical Company Inc.
+in Million
+Sun Pharmaceutical Industries Ltd.
+Sr
+38
+Faststone Mercantile Company
+Private Limited
+01.04.2012
+INR
+1.00
+0.1
+12.6
+Taxation
+13.2
+1.7
+0.4
+1.3
+39 Neetnav Real Estate Private Limited
+01.04.2012
+INR
+1.00
+0.5
+Realstone Multitrade Private Limited
+Taxation
+Proposed
+Dividend
+Date since
+when
+Name of the Subsidiary Company
+No
+subsidiary
+Reporting
+Currency
+Rate Capital
+Reserve
+Taxation
+Total
+Total
+Assets Liabilities
+Investment
+Other than
+Investment
+in Subsidiary
+Profit
+/ (Loss)
+Turnover
+Provision
+for
+Profit
+/ (Loss)
+before
+after
+was acquired
+0.0
+0.0
+0.0
+5.3
+0.0
+0.0
+0.0
+0.0
+Private Limited
+9
+Sun Pharmaceutical
+(0.0)
+(83.9)
+(0.3) (61.4)
+(0.2)
+(11.5)
+(0.3)
+(72.9)
+0.0
+Universal Enterprises
+8
+Private Limited
+11.5
+0.0
+0.4
+.
+0.0
+67
+0.0
+Medicare Limited
+0.0
+0.4
+0.0
+0.4
+0.0
+0.0
+0.0
+0.4
+1280
+10 Zenotech Laboratories Limited
+0.4
+1,553.4
+(1.0)
+(199.1)
+0.2
+717.1
+1.1
+223.5
+(0.8)
+0.9
+(0.5) (2,289.9)
+(199.1)
+223.5
+0.0
+0.2
+Sun Pharmaceutical Peru S.A.C.
+(0.0)
+(149.3)
+0.0
+1.8
+SPIL De Mexico S.A. DE C.V.
+0.0
+Mexico S.A. DE C.V.
+Sun Farmaceutica Do Brasil Ltda.
+(0.8) (159.0)**
+0.0
+0.5
+(0.6) (158.5)
+Foreign
+1
+Sun Pharmaceutical
+Sun Pharma De
+0.3
+0.9
+187.8
+0.7
+187.8
+23
+456
+(Bangladesh) Limited
+1,084.7
+0.0
+150
+0.0
+As % of
+consolidated
+profit or (loss)
+14.6
+* in Million
+As % of
+consolidated
+OCI
+As % of
+in
+Million
+consolidated in Million
+TCI
+3,056.4
+11.9
+566.9
+14.1
+3,623.3
+Industries Limited
+Subsidiaries
+Realstone Multitrade
+52.9 223,226.1
+Parent Entity - Sun Pharmaceutical
+net assets
+* in Million
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Disclosure of additional information pertaining to the Parent Company, subsidiaries,
+associates and joint ventures as per Schedule III of Companies Act, 2013:
+(Annexure 'A')
+Net Assets, i.e., total assets
+minus total liabilities
+Share in profit or (loss)
+S.
+Private Limited
+Name of the entity
+2017-18
+2017-18
+Share in other
+comprehensive income
+(OCI)
+2017-18
+Share in total
+comprehensive income
+(TCI)
+2017-18
+As % of
+consolidated
+No.
+Skisen Labs Private Limited
+0.0
+0.0
+34.4 8,840.3
+3
+Faststone Mercantile Company
+Private Limited
+4 Neetnav Real Estate
+Private Limited
+0.0
+78.1
+11.5
+0.4
+0.0
+0.4
+0.7
+2,920.9
+0.0
+0.6
+0.0
+0.6
+1.6
+41.8
+Softdeal Trading Company
+0.0
+11.0
+1
+Indian
+Green Eco Development
+0.0
+8,762.2
+1.6
+(0.1)
+(0.0)
+(0.1)
+Centre Limited
+2
+Sun Pharma Laboratories Limited
+46.6 196,823.7
+(0.0)
+1.8
+OOO "Sun Pharmaceutical
+(0.0)
+* in Million
+net assets
+19 Sun Pharmaceuticals France
+20 Sun Pharma Global FZE
+(0.0)
+(24.7)
+Net Assets, i.e., total assets
+minus total liabilities
+Share in profit or (loss)
+2017-18
+2017-18
+Share in other
+comprehensive income
+(OCI)
+2017-18
+Share in total
+comprehensive income
+(TCI)
+2017-18
+As % of
+consolidated
+profit or (loss)
+* in Million
+As % of
+consolidated
+No.
+Name of the entity
+S.
+18 Sun Pharmaceuticals
+(0.0)
+(207.2)
+0.1
+15.0
+0.1
+15.0
+As % of
+consolidated
+OCI
+Germany GmbH
+240 Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2019
+Disclosure of additional information pertaining to the Parent Company, subsidiaries,
+associates and joint ventures as per Schedule III of Companies Act, 2013:
+(Annexure 'A')
+Annual Report 2018-19
+As % of
+in
+Million
+consolidated in Million
+(0.0)
+(1.4)
+(0.0)
+(0.2)
+(0.0)
+(0.2)
+(0.1)
+22 Sun Global Canada Pty. Ltd.
+23 Sun Pharma Philippines, Inc.
+(441.5)
+(38.4)
+(0.1)
+(38.4)
+24 Sun Pharmaceuticals Korea Ltd.
+0.0
+4.4
+0.0
+(0.2)
+(0.9)
+0.1
+0.1
+TCI
+(0.0)
+(4.5)
+(0.0)
+(4.5)
+24.2
+101,507.0
+0.0
+(27.2) (5,706.5)*
+1,073.1
+(18.0) (4,633.4)*
+21
+(Consolidated with a Joint venture)
+Sun Pharmaceuticals (SA) (Pty) Ltd.
+(0.0)
+(0.0)
+0.0
+22.6
+(0.0)
+(0.9)
+(0.0)
+(1.0)
+(257.9)
+0.2
+877.7
+2.2
+455.7
+1.8
+(257.9)
+455.7
+211.2
+(1.6)
+(343.5)
+(1.4)
+(343.5)
+11
+Sun Pharma (Netherlands)
+0.1
+12.5 52,694.6
+(1.2)
+9 Ranbaxy (Malaysia) SDN. BHD.
+10 Ranbaxy Nigeria Limited
+(187.8)
+(0.1)
+(10.0)
+(0.0)
+(10.0)
+Industries" Limited
+7
+(0.5) (2,199.2)
+Sun Pharma De Venezuela, C.A.
+(2.6)
+(0.0)
+(0.7)
+(0.0)
+(0.7)
+8
+Ranbaxy Pharmacie Generiques
+(0.0)
+(0.1)
+(5.1)
+3.0
+12.0
+0.0
+5.6
+0.0
+5.6
+16 Sun Pharmaceutical
+(0.0)
+0.0
+(66.0)
+62.0
+0.2
+62.0
+Industries (Europe) B.V.
+17 Sun Pharmaceuticals Italia S.R.L.
+0.0
+46.1
+0.3
+(1,077.4)
+15 Aditya Acquisition Company Ltd.
+95.2
+143.1
+(3.6)
+(934.3)
+B.V (Formerly Ranbaxy
+(Netherlands) B.V.)
+12 Alkaloida Chemical Company Zrt.
+13 Sun Pharmaceuticals UK Limited
+14 Sun Pharmaceutical Industries
+(Australia) Pty Limited
+5.8 24,387.2
+(4.7) (1,220.1)
+(0.8)
+0.0
+0.5
+0.4 1,512.7
+(5.8)
+(163.4)
+95.2
+(1,220.1)
+(0.6) (163.4)
+0.4
+0.0
+(29.6)
+01.04.2012
+2,174.2
+307.9
+1.2
+307.9
+(Consolidated with its Subsidiary)
+50 Ranbaxy Pharmaceuticals
+(0.2)
+0.9
+183.1
+0.7
+183.1
+(Pty) Ltd
+51
+Be-Tabs Investments (Pty) Ltd
+0.0
+19.8
+52 Laboratorios Ranbaxy, S.L.U.
+0.1
+355.3
+53 Ranbaxy (U.K.) Limited
+0.3
+1,383.9
+OO
+33
+0.3
+0.3
+62.9
+0.2
+1.4
+62.9
+1,225.3
+Ranbaxy South Africa (Pty) Ltd
+Industries S.A.C.
+45 Ranbaxy (Poland) SP. Z O.O.
+0.0
+194.8
+0.1
+11.8
+0.0
+11.8
+46 Terapia SA
+3.3 14,079.7
+10.4
+2,174.2
+8.5
+47 AO Ranbaxy
+0.2
+1,027.0
+0.3
+57.8
+0.2
+57.8
+48 JSC Biosintez
+0.2
+994.4
+(2.5)
+(511.8)
+(2.0) (511.8)
+49
+0.3
+55.7
+(979.5)
+55.7
+2,832.7
+0.0
+(0.0)
+(0.1)
+56 Sun Pharmaceutical Holding
+11.7
+49,434.6
+(26.1) (5,466.9)#
+consolidated in Million
+TCI
+(0.1)
+(0.0)
+(21.3) (5,466.9)#
+USA Inc (Consolidated with its
+Subsidiaries, its associates and
+a Joint venture)
+0.0
+57 Ranbaxy (Thailand) Co., Ltd.
+208.0
+0.1
+30.0
+0.1
+58 Sun Pharmaceuticals Morocco LLC
+0.2
+59 "Ranbaxy Pharmaceuticals
+0.0
+(72.9)
+158.6
+(0.2)
+0.2
+(31.2)
+48.0
+(0.1)
+0.2
+30.0
+(31.2)
+48.0
+0.0
+55 Ranbaxy Europe Limited
+(0.0)
+54 Ranbaxy Holdings (U.K.) Limited
+0.7
+Specialty in progress
+FINANCIAL STATEMENTS > Consolidated
+241
+Notes to the Consolidated Financial Statements
+Disclosure of additional information pertaining to the Parent Company, subsidiaries,
+associates and joint ventures as per Schedule III of Companies Act, 2013:
+(Annexure 'A')
+Net Assets, i.e., total assets
+minus total liabilities
+Share in profit or (loss)
+Share in other
+comprehensive income
+S.
+Name of the entity
+No.
+2017-18
+for the year ended March 31, 2019
+As % of
+consolidated
+in
+Million
+As % of
+OCI
+* in Million
+As % of
+consolidated
+profit or (loss)
+2017-18
+As % of
+consolidated
+net assets
+2017-18
+(TCI)
+Share in total
+comprehensive income
+(OCI)
+2017-18
+* in Million
+To consider and, if thought fit, to pass the following
+resolution as a Special Resolution:
+RESOLVED THAT pursuant to the provisions of Section 148
+and other applicable provisions, if any, of the Companies Act,
+2013 read with the Companies (Audit and Auditors) Rules,
+2014 (including any statutory modification(s) or reenactment(s)
+thereof, for the time being in force), the remuneration as set out
+in the Explanatory Statement annexed to this Notice, payable
+to M/s. B M Sharma & Associates, Cost Accountants, Firm's
+Registration No. 100537, appointed as the Cost Auditors of the
+Company to conduct the audit of cost records maintained by
+the Company for the financial year 2019-20, be and is hereby
+ratified.
+RESOLVED FURTHER THAT the Board of Directors of
+the Company or any Committee thereof, be and is hereby
+authorized to do all such acts, deeds and things, to execute all
+such documents, instruments and writings as may be required
+to give effect to this resolution."
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+3.
+7.
+Companies (Amendment) Act, 2017 and such other applicable
+provisions, if any, of the Act and the rules made thereunder, and
+pursuant to abatement by Central Government of applications
+made by the Company, consent / ratification of the members
+be and is hereby accorded for Commission amounting to ₹ 6.4
+Million paid to the Non-Executive Directors of the Company
+(other than the Managing Director and / or Whole-time
+Directors) for the financial year 2013-14 which is in excess of
+the limits prescribed under the Companies Act, 1956 in view of
+the absence of profits for financial year 2013-14."
+To consider and, if thought fit, to pass the following
+resolution as a Special Resolution:
+"RESOLVED THAT in partial modification of the resolution
+passed by the members at the 26th Annual General Meeting of
+the Company held on September 26, 2018 for re-appointment
+of Mr. Kalyanasundaram Subramanian ("Mr. Kal") (DIN:
+00179072) as the Whole-time Director of the Company, and
+pursuant to the provisions of Sections 196, 197, 198 and
+other applicable provisions, if any, of the Companies Act,
+2013 ("the Act") read with Schedule V of the Companies Act,
+2013, and in partial modification of the Agreement dated
+January 29, 2019 entered into between the Company and Mr.
+Kal for his re-appointment as the Whole-Time Director, the
+shareholders of the Company hereby approve the overall limit
+of remuneration as stated below of Mr. Kal as the Whole-time
+Director of the Company, as recommended by the Nomination
+and Remuneration Committee of the Company and approved
+by the Board of Directors of the Company, with effect from
+July 04, 2019 upto the remaining term of his appointment i.e.
+upto February 13, 2021, as per the draft revised agreement,
+including for revision of clause of the agreement pertaining
+to Remuneration, which Agreement is hereby specifically
+sanctioned with liberty to the Board of Directors to alter, vary
+and modify the terms and conditions of the said appointment
+and/or Agreement, in such manner as may be agreed to
+between the Board of Directors and Mr. Kal.
+"RESOLVED THAT pursuant to the provisions of Section 197
+(10) of the Companies Act, 2013 ('the Act") as amended by the
+6.
+To receive, consider and adopt the audited consolidated
+financial statements of the Company for the financial year
+ended March 31, 2019 and the report of the Auditors
+thereon.
+SPECIAL BUSINESS:
+To appoint a Director in place of Mr. Kalyanasundaram
+Subramanian (DIN: 00179072), who retires by rotation and
+being eligible, offers himself for re-appointment.
+To appoint a Director in place of Mr. Sailesh T. Desai (DIN:
+00005443) who retires by rotation and being eligible, offers
+himself for re-appointment.
+To consider declaration of dividend on equity shares for the
+financial year ended March 31, 2019.*
+b.
+a. To receive, consider and adopt the audited standalone
+financial statements of the Company for the financial year
+ended March 31, 2019 and the reports of the Board of
+Directors and Auditors thereon.
+4.
+REMUNERATION:
+2.
+5.
+The remuneration payable to Mr. Kalyanasundaram
+Subramanian shall be determined by the Board of Directors,
+from time to time within, however, the maximum limits set forth
+below, with effect from July 04, 2019 upto the remaining term
+of his appointment i.e. upto February 13, 2021:
+RESOLVED FURTHER THAT the Board of Directors of the
+Company be and is hereby authorized to take such steps as
+they may deem fit, expedient or desirable to give effect to this
+Resolution."
+Salary (including bonus, perquisites and variable pay
+subject to individual and company performance as per
+plan) up to 9,00,00,000/- (Rupees Nine Crores only)
+per annum.
+1.
+6.
+5.
+4.
+3.
+2.
+SPARC, Tandalja, Vadodara - 390 012.
+By order of the Board of Directors
+For Sun Pharmaceutical Industries Ltd.
+Registered Office:
+Mumbai
+July 05, 2019
+RESOLVED FURTHER THAT in the event of any statutory
+amendments, modifications or relaxation by the Central
+Government to Schedule V of the Act, the Board of
+Directors be and is hereby authorised to vary or increase the
+remuneration (including the minimum remuneration), i.e. the
+salary, perquisites, allowances, etc. within such prescribed
+limit or ceiling and the aforesaid draft Agreement between
+the Company and Mr. Kal be suitably amended to give effect
+to such modification, relaxation or variation, subject to such
+approvals as may be required under law.
+Minimum Remuneration: In the event of loss
+or inadequacy of profits in any financial year,
+Mr. Kalyanasundaram Subramanian shall be entitled
+to receive a total remuneration including perquisites,
+etc. not exceeding the ceiling limits as approved by
+the Board of Directors and the members, as minimum
+remuneration.
+superannuation fund or annuity fund, gratuity payment as
+per Company's rules and encashment of leave at the end
+of his tenure, though payable, shall not be included in the
+computation of ceiling on remuneration and perquisites
+as aforesaid.
+Company's contribution to provident fund and
+other perquisites in accordance with the Company's
+rule/policy, the monetary value of such perquisites to be
+determined in accordance with the Income-Tax Rules,
+1962.
+b)
+PHARMA
+SUN
+250 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+Perquisites: He will be entitled to furnished/non-
+furnished accommodation or house rent allowance,
+gas, electricity, medical reimbursement, leave travel
+concession for self and family, club fees, personal accident
+insurance, company maintained car, telephone and such
+a)
+ORDINARY BUSINESS:
+19. The members are requested to get their physical shares
+dematerialized urgently vide SEBI Circular dated June 08, 2018
+read with SEBI Circular dated December 03, 2018 as with
+effect from April 01, 2019, except in case of transmission or
+transposition, securities shall not be transferred unless they are
+held in the dematerialized form.
+NOTICE OF ANNUAL GENERAL MEETING
+Brief resume
+of the Director
+including
+nature of
+expertise
+in specific
+functional
+areas:
+Date of First
+appointment
+on the Board:
+Directorship
+held in other
+companies
+(excluding
+foreign
+companies
+& section 8
+companies):
+Mr. Sailesh T. Desai
+65 Years
+Mr. Sailesh T. Desai is a science graduate
+from Kolkata University and is a successful
+entrepreneur with more than three decades of
+wide industrial experience including more than
+two decades in the pharmaceutical industry.
+March 25, 1999
+1. Sun Pharma Laboratories Limited
+2.
+Sun Pharmaceutical Medicare Limited
+3. Universal Enterprises Private Limited
+4. Sun Pharma Distributors Limited
+Membership/ Sun Pharma Laboratories Limited - Member of
+Chairmanships Nomination and Remuneration Committee
+of Committees
+of other public
+Companies:
+Inter-se
+Relationship
+between
+Directors:
+No. of Shares
+held in the
+Company
+(singly or
+jointly as first
+holder) as on
+March 31,
+2019:
+None
+3738747 Equity Shares
+Specialty in progress
+7.
+Age
+NOTICE is hereby given that the Twenty-Seventh Annual General
+Meeting of the members of Sun Pharmaceutical Industries Limited
+will be held on Wednesday, August 28, 2019 at 03:15 P.M. at
+Crystal Hall, Grand Mercure Vadodara Surya Palace, Opposite Parsi
+Agyari, Sayajigunj, Vadodara - 390 020, Gujarat, India to transact the
+following business:
+Particulars
+(Details of Directors proposed to be appointed/ reappointed)
+As required under Regulation 36 of the SEBI (Listing Obligations and
+Disclosure Requirements) Regulations, 2015 ("Listing Regulations")
+and as required under Secretarial Standard on General Meetings
+issued by the Institute of Company Secretaries of India (SS - 2),
+the particulars of Directors who are proposed to be appointed /
+reappointed and / or whose remuneration is proposed to be approved
+at this 27th Annual General Meeting, are given below:
+Registered Office: SPARC Tandalja, Vadodara - 390 012, Gujarat, India Tel Nos: 0265-6615500/600/700 Fax No: 0265-2354897
+Corporate Office: Sun House, Plot No. 201 B/1, Western Express Highway, Goregaon -East, Mumbai - 400 063, Maharashtra, India.
+CIN: L24230GJ1993PLC019050 Website: www.sunpharma.com Email: secretarial@sunpharma.com
+Sun Pharmaceutical Industries Ltd.
+PHARMA
+SUN
+NOTICE >
+249
+Due to change of Mr. Kal's responsibilities in the Company and his
+change of designation to Non Executive Director in SPLL, the Board
+has also approved payment of remuneration, from the Company, to
+Mr. Kal as Whole-time Director for a period from July 04, 2019 upto
+the remaining term of his appointment i.e. upto February 13, 2021,
+as recommended by the Nomination and Remuneration Committee,
+subject to approval of members.
+The Board recommends to the members for their approval, the
+overall limit of remuneration of Mr. Kal as stated in the resolution
+Item No. 7 and the actual remuneration payable to Mr. Kal shall
+be determined by the Board of Directors, as recommended by the
+Nomination and Remuneration Committee, from time to time within,
+however, the maximum limits approved by the members.
+It may be noted that the main terms and conditions of Mr. Kal's
+re-appointment, other than remuneration, shall remain the same as
+per the resolution passed by the members at the 26th AGM held on
+September 26, 2018 and agreement dated January 29, 2019, entered
+into between the Company and Mr. Kal.
+The Board has approved the following remuneration to Mr. Kal
+(subject to revision), with effect from July 04, 2019 on proportionate
+basis, as recommended by the Nomination and Remuneration
+Committee, subject to the overall limit to be approved by the
+members:
+Remuneration of Mr. Kal per annum:
+Particulars
+Amount in
+Salary including allowances, bonus and perquisites
+excluding contribution to provident fund
+Variable Pay
+4,98,62,186
+75,00,000
+5,73,62,186
+Total
+The Board recommends the Resolution set out in Item No. 7 of this
+Notice for approval of the members as Special Resolution as per
+requirement of Schedule V of the Act.
+The draft agreement to be entered into with Mr. Kalyanasundaram
+Subramanian, his appointment letter and copy of the resolution
+passed at the 26th AGM of the Company held on September 26,
+2018 for re-appointment of Mr. Kal alongwith the explanatory
+statement are available for inspection by any member of the
+Company at the Registered Office of the Company on all working
+days except Saturdays and Sundays between 11:00 a.m. IST and 1:00
+p.m. IST up to the date of this 27th Annual General Meeting and at
+the venue of this Meeting during Meeting hours.
+None of the Directors, Key Managerial Personnel of the Company or
+their relatives, except Mr. Kalyanasundaram Subramanian to whom
+this resolution relates and his relatives, are in anyway concerned or
+interested in the resolution as set out at item no. 7 of this Notice.
+PROFILE OF DIRECTORS
+The details of Board and Committee Meetings attended by these
+Directors during the year 2018-19 are stated in the Corporate
+Governance Report which forms part of this Annual Report.
+The details of remuneration, wherever applicable, are provided in the
+respective resolution(s).
+Sunil R. Ajmera
+Company Secretary
+Rate of Dividend
+NOTES:
+IX.
+These Rules can be amended by the Board of Directors of
+the Company from time to time as may be required.
+15. The members of erstwhile Tamilnadu Dadha Pharmaceuticals
+Limited; erstwhile Gujarat Lyka Organics Limited; erstwhile
+Phlox Pharmaceuticals Limited and erstwhile Ranbaxy
+Laboratories Limited; who have not yet sent their share
+certificates of erstwhile Tamilnadu Dadha Pharmaceuticals
+Limited; erstwhile Gujarat Lyka Organics Limited; erstwhile
+Phlox Pharmaceuticals Limited and erstwhile Ranbaxy
+Laboratories Limited, respectively for exchange with the
+share certificates of Sun Pharmaceutical Industries Limited,
+are requested to do so at the earliest, since share certificates
+of the erstwhile Tamilnadu Dadha Pharmaceuticals Limited;
+erstwhile Gujarat Lyka Organics Limited; erstwhile Phlox
+Pharmaceuticals Limited and erstwhile Ranbaxy Laboratories
+Limited are no longer tradable / valid.
+16. The members may be aware that the equity shares of the
+Company had been subdivided from 1 (One) equity share
+of 5/- (Rupees Five Only) each to 5 (Five) equity shares of
+1/- each on November 29, 2010 based on the Record Date
+of November 26, 2010. The members who have yet not sent
+their share certificates of ₹ 5/- (Rupees Five Only) each of the
+Company for exchange with new equity shares of ₹1/- each are
+requested to send the same to the Company's Registrar and
+Share Transfer Agents, Link Intime India Pvt. Ltd. since the old
+share certificates of *5/- (Rupees Five Only) each are no
+longer tradable.
+17. Pursuant to Section 124 of the Act, the amount of dividend
+remaining unclaimed for a period of seven years shall be
+transferred to the Investor Education and Protection Fund
+("IEPF"). The Company will be transferring the unclaimed
+dividends during the financial years ending March 31, 2019 to
+March 31, 2026 as given below:
+Dividend for Financial Year
+2011-2012
+Date of Declaration of Dividend
+entitled
+VIII. The decision of the Board of Directors of the Company
+or such person(s) as may be authorized by Board of
+Directors of the Company shall be final and binding on
+the concerned Shareholders on issues arising out of the
+interpretation and / or implementation of these Rules.
+10.08.2012
+2012-2013
+2013-2014
+2014-2015
+2015-2016
+2016-2017
+2017-2018
+Due Date for
+transfer to IEPF
+*4.25 per share of *1/- each
+07.09.2019
+NOTICE >
+The Equity Shareholders who wish to waive / forgo their
+right to receive the dividend for any year can inform the
+Company in the prescribed form only after the beginning
+of the relevant financial year for which the right to
+receive the dividend is being waived / forgone by him.
+VII. The instruction by a Shareholder to the Company for
+waiving/forgoing the right to receive dividend for any
+year is purely voluntary on the part of the Shareholder(s).
+There is no interference with a Shareholder's Right to
+receive the dividend, if he does not wish to waive / forgo
+his right to receive the dividend. No action is required on
+the part of Shareholder who wishes to receive dividends
+as usual. Such Shareholder will automatically receive
+dividend as and when declared.
+VI.
+PHARMA
+251
+Intime India Pvt. Ltd., C 101, 247 Park, L.B.S. Marg, Vikhroli
+(West), Mumbai 400 083 or email at rnt.helpdesk@linkintime.
+co.in from their registered e-mail ID, duly quoting his/her
+DP ID and Client ID or the Folio number, as the case may
+be. A copy of the Notice of the 27th AGM along with the
+Annual Report 2018-19 is also available for download on the
+website of the Company www.sunpharma.com. To support
+the 'Green Initiative', members who have not registered their
+e-mail addresses are requested to register the same with our
+Registrar & Share Transfer Agents, Link Intime India Pvt. Ltd., /
+Depositories.
+11. Pursuant to Regulation 44(6) of SEBI Listing Regulations, the
+Company is pleased to provide the facility of live webcast
+of proceeding of 27th AGM of the Company from 3:15 p.m.
+onwards on Wednesday, August 28, 2019. Members can view
+the proceeding of AGM by logging on to the e-voting website
+of CDSL at www.evotingindia.com. On this page, click on
+the link Shareholders / Members, the web cast link would be
+available adjacent to EVSN No. 190715011 of the Company.
+12.
+Relevant documents / agreements referred to in the
+accompanying Notice and the Explanatory Statement are open
+for inspection by the members at the Registered Office and the
+Corporate Office of the Company on all working days, except
+Saturdays and Sundays, between 11:00 a.m. IST and 1:00.p.m.
+IST upto the date of the Meeting and at the venue of the
+Meeting during Meeting hours.
+13. The Board of Directors at its Meeting held on May 28, 2019,
+recommended a Dividend of ₹ 2.75/- (Rupees two and paise
+seventy five only) per equity share of * 1/- each of the Company
+for the year ended March 31, 2019 and the same if declared
+at the Meeting will be paid on or before August 30, 2019, to
+the Company's members whose names stand in the Register of
+Members as beneficial owners at the close of business hours
+on Wednesday, August 21, 2019 as per the list provided by
+National Securities Depository Limited ("NSDL") and Central
+Depository Services (India) Limited (“CDSL") in respect of
+shares held in electronic form and as members in the Register of
+Members of the Company after giving effect to valid transfers
+in physical form lodged with the Company on or before
+Wednesday, August 21, 2019.
+14. At the Extra Ordinary General Meeting of the members of
+the Company held on September 1, 2003, the members had
+approved, by way of a Special Resolution, certain amendments
+whereby few Articles were inserted in the Articles of
+Association of the Company relating to enabling the Company
+to implement any instruction from member(s) of the Company
+to waive / forgo his/ their right to receive the dividend
+(interim or final) from the Company for any financial year. The
+above referred amendments as approved at the aforesaid Extra
+Ordinary General Meeting have been retained and are inter
+alia forming part of new set of Articles of Association adopted
+at the 24th Annual General Meeting of the Company held
+on September 17, 2016. Thus, the members of the Company
+can waive / forgo, if he/ they so desire(s), his/ their right to
+receive the dividend (interim or final) for any financial year
+effective from the dividend recommended by the Board of
+Directors of the Company for the year ended March 31, 2004
+on a year to year basis, as per the rules framed by the Board of
+Directors of the Company from time to time for this purpose.
+The member, if so wishes to waive / forgo the right to receive
+Dividend for the year ended March 31, 2019, shall fill up the
+form and send it to the Company's Registrars on or before
+Wednesday, August 21, 2019. The form prescribed by the
+Board of Directors of the Company for waiving / forgoing the
+right to receive Dividend for any year shall be available for
+download on the Company's website www.sunpharma.com
+under section "Investor - Shareholder's Information- Statutory
+Communication" or can also be obtained from the Company's
+Registrar and Share Transfer Agents, Link Intime India Pvt. Ltd.
+The Board of Directors of the Company at its meeting held on
+September 01, 2003 have framed the following rules under
+old Article 190A (corresponding Article 142 as per the new set
+of Articles of Association) of the Articles of Association of the
+Company for members who want to waive / forgo the right to
+receive dividend in respect of financial year 2002-2003 or for
+any year thereafter:
+I.
+II.
+III.
+IV.
+A Shareholder can waive / forgo the right to receive the
+dividend (either final and/ or interim) to which he is
+entitled, on some or all the Equity Shares held by him in
+the Company as on the Record Date / Book-closure Date
+fixed for determining the names of Members entitled for
+such dividend. However, the Shareholder cannot waive /
+forgo the right to receive the dividend (either final and / or
+interim) for a part of percentage of dividend on a share(s).
+The Equity Shareholder(s) who wish to waive / forgo the
+right to receive the dividend for any year shall inform
+the Company in the form prescribed by the Board of
+Directors of the Company only.
+In case of joint holders holding the Equity Shares of the
+Company, all the joint holders are required to intimate
+to the Company in the prescribed form their decision of
+waiving/forgoing their right to receive the dividend from
+the Company.
+The Shareholder, who wishes to waive / forgo the
+right to receive the dividend for any year shall send his
+irrevocable instruction waiving / forgoing dividend so as
+to reach the Company before the Record Date / Book
+Closure Date fixed for the payment of such dividend.
+Under no circumstances, any instruction received for
+waiver / forgoing of the right to receive the dividend for
+any year after the Record Date / Book Closure Date fixed
+for the payment of such dividend for that year shall be
+given effect to.
+V. The instruction once given by a Shareholder intimating
+his waiver / forgoing of the right to receive the dividend
+for any year for interim, final or both shall be irrevocable
+and cannot be withdrawn for that particular year for
+such waived/forgone the right to receive the dividend.
+But in case, the relevant Shares are sold by the same
+Shareholder before the Record Date / Book Closure Date
+fixed for the payment of such dividend, the instruction
+once exercised by such earlier Shareholder intimating
+his waiver / forgoing the right to receive dividend will be
+invalid for the next succeeding Shareholder(s) unless such
+next succeeding Shareholder(s) intimates separately in
+the prescribed form, about his waiving / forgoing of the
+right to receive the dividend for the particular year.
+Annual Report 2018-19
+252 Sun Pharmaceutical Industries Ltd.
+SUN
+30.09.2013
+*2.50 per share of 1/- each
+25.10.2020
+27.09.2014
+China and Japan Business and Corporate Strategic Initiatives of the
+Company, with effect from July 04, 2019.
+20. Route map along with prominent landmark to the Venue of the
+Meeting is provided at the end of this Notice.
+21. Remote e-voting and electronic voting system:
+Voting through electronic means:
+(a)
+(b)
+(c)
+This Notice of 27th AGM along with the Annual Report for
+2018-19 is being sent by electronic mode to those members
+whose e-mail address are registered with the Company's
+Registrar & Share Transfer Agents, Link Intime India Pvt. Ltd.
+/ Depositories. Physical copies of the Notice of 27th AGM
+along with Annual Report for 2018-19 are being sent, by the
+permitted mode, to those members whose email addresses
+are not registered and the members who have specifically
+requested for the physical copy in addition to e-mail. However,
+in case a member wishes to receive a physical copy of the
+Annual Report 2018-19, he / she is requested to write to Link
+The Register of Members and Share Transfer Books of the
+Company will be closed from Thursday, August 22, 2019
+to the date of the 27th AGM of the Company to be held on
+Wednesday, August 28, 2019 (both days inclusive) for the
+purpose of the 27th AGM of the Company and for the payment
+of Dividend.
+In case of joint holders attending the Meeting, the member
+whose name appears as the first holder in the order of names
+as per Register of Members will be entitled to vote.
+The Proxy should carry his / her identity proof i.e. a Pan Card
+/ Aadhaar Card / Passport / Driving License / Voter ID Card or
+such other proof(s) to prove his/her identity at the venue of the
+Meeting.
+Member(s)/proxy(ies) / Authorised Representative(s) should
+bring their attendance slips duly filled in for attending the
+Meeting.
+Corporate members intending to send their authorized
+representative(s) to attend and vote on their behalf at the
+Meeting are requested to submit to the Company a certified
+true copy of the resolution of the Board of Directors or
+other governing body of the body corporate authorizing
+their representative(s) to attend and vote along with
+specimen signature of authorized representative(s) before
+commencement of the Meeting.
+A MEMBER ENTITLED TO ATTEND AND VOTE AT THE
+MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND
+AND VOTE INSTEAD OF HIMSELF/HERSELF AND SUCH
+PROXY NEED NOT BE A MEMBER OF THE COMPANY.
+The Proxy form duly completed must reach the Registered
+Office of the Company not later than forty-eight hours before
+the scheduled time of the commencement of the Meeting.
+Pursuant to the provisions of Section 105 of the Act read with
+the Companies (Management and Administration) Rules, 2014,
+a person can act as a proxy on behalf of not more than fifty
+members and holding in aggregate not more than ten percent of
+the total share capital of the Company. Members holding more
+than ten percent of the total share capital of the Company may
+appoint a single person as proxy, who shall not act as a proxy
+for any other person or member. Proxies submitted on behalf
+of limited companies, societies, etc., must be supported by an
+appropriate resolution / authority, as applicable.
+Institute of Company Secretaries of India (SS-2), in respect
+of the persons seeking appointment / re-appointment as
+Directors are given under the heading "Profile of Directors"
+forming part of this Notice.
+10.
+9.
+8.
+The relevant details as required under Regulation 36 of the
+SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 ("Listing Regulations") and Clause 1.2.5
+of Secretarial Standard on General Meetings issued by the
+The Explanatory Statement pursuant to Section 102(1) of the
+Companies Act, 2013 ('the Act') relating to the Special Business
+to be transacted at the 27th Annual General Meeting of the
+Company (the "Meeting" or "AGM") under Item Nos. 5, 6 and 7,
+is annexed hereto.
+1.
+253
+*The actual equity dividend to be declared by the members at the
+27th Annual General Meeting will be for only equity shares other
+than the equity shares in respect of which the equity shareholder(s)
+has/have waived/forgone his/her/their right to receive the dividend
+for the financial year ended March 31, 2019 in accordance with the
+rules framed by the Board as per Note no. 14 hereinafter appearing.
+NOTICE >
+"Shareholder Information”.
+*1.50 per share of ₹1/- each
+Specialty in progress
+26.10.2021
+31.10.2015
+*3.00 per share of *1/- each
+29.11.2022
+17.09.2016
+*1.00 per share of *1/- each
+15.10.2023
+26.09.2017
+*3.50 per share of 1/- each
+25.10.2024
+26.09.2018
+25.10.2025
+Members who have not encashed their dividend warrants,
+for the financial year ended March 31, 2012 and onwards
+are requested to approach the Company's Registrar & Share
+Transfer Agents, Link Intime India Pvt. Ltd. at C-101, 247 Park,
+L.B.S. Marg, Vikhroli (West), Mumbai - 400083, Maharashtra,
+India, to claim their unpaid Dividend. The Dividend declared for
+the financial year ended March 31, 2012 and remaining unpaid
+and unclaimed, will be transferred to the Investor Education
+and Protection Fund by September 7, 2019. Pursuant to the
+provisions of Investor Education and Protection Fund Authority
+(Accounting, Audit, Transfer and Refund) Rules, 2016, the
+Company has uploaded the details of unpaid and unclaimed
+amounts lying with the Company as on September 26, 2018
+(date of the last Annual General Meeting of the Company) on
+the website of the Company viz., www.sunpharma.com under
+head "Investor" sub-head "Shareholder Information" as well as
+on the website of the Ministry of Corporate Affairs viz.,
+www.iepf.gov.in.
+18. The members may note that pursuant to Section 124(6) of
+the Act read with Investor Education and Protection Fund
+Authority (Accounting, Audit, Transfer and Refund) Rules,
+*2.00 per share of *1/- each
+2016 as amended from time to time ("the Rules"), the shares
+in respect of which dividend has not been paid or claimed
+by the members for seven consecutive years or more shall
+be transferred to the demat account created by the IEPF
+Authority.
+Consequently, the Company has transferred the shares to
+the IEPF Authority in respect of which dividend has remained
+unpaid or unclaimed from the financial year 2010-11 for 7
+(seven) consecutive years, the details of which are available
+on website of the Company www.sunpharma.com under head
+"Investor" sub-head "Shareholder Information".
+The details of shares liable to be transferred to the IEPF
+Authority are also available on website of the Company www.
+sunpharma.com under head "Investor" sub-head "Shareholder
+Information". These shares will be transferred to the IEPF
+Authority as per the requirements of Rules.
+The procedure to claim shares from IEPF Authority is provided
+on the website of the Company and can be accessed from:
+www.sunpharma.com under head "Investor" sub-head
+Specialty in progress
+257
+Parsi
+Age
+The list of accounts should be mailed to
+helpdeskevoting@cdslindia.com and on approval of
+the accounts they would be able to cast their vote.
+A scanned copy of the Board Resolution and Power
+of Attorney (POA) which they have issued in favour
+of the Custodian, if any, should be uploaded in PDF
+format in the system for the scrutinizer to verify
+the same and send the scan copy of the Board
+resolution / POA to scrutinizer@sunpharma.com.
+(xx) In case you have any queries or issues regarding remote
+e-voting, you may refer the Frequently Asked Questions
+("FAQs") and remote e-voting manual available at www.
+evotingindia.com, under help section or write an email to
+helpdeskevoting@cdslindia.com.
+Any person having any grievances in connection with
+remote e-voting may write to:
+Name
+:
+Designation
+Address
+:
+Email ID
+After receiving the login details a compliance
+user should be created using the admin login and
+password. The Compliance user would be able to
+link the account(s) for which they wish to vote on.
+:
+SUN
+256 Sun Pharmaceutical Industries Ltd.
+Annual Report 2018-19
+In view thereof, there is also a change in roles and responsibilities
+in the Company of Mr. Kal, Whole-time Director of the Company,
+who was responsible as Head for India Business, Emerging Market
+and Consumer Health Care of the Company until now. The Board of
+Directors and the Nomination and Remuneration Committee have, by
+way of circular resolution, approved change of Mr. Kalyanasundaram
+Subramanian's responsibility from India Business, Emerging Market
+and Consumer Health Care to the new responsibility covering
+Mr. Kal has with effect from July 04, 2019, stepped down from the
+position of CEO & Whole-time Director of SPLL, however, he shall
+continue to be Non-Executive and Non-Independent Director of
+SPLL, and the same has been approved by the Board of Directors,
+as recommended by Nomination and Remuneration Committee of
+SPLL. Since Mr. Kal has now stepped down as CEO & Whole-time
+Director of SPLL and has become Non Executive Director of SPLL,
+he will not be drawing any remuneration from SPLL with effect from
+July 04, 2019.
+Mr. Kal had also been reappointed as the CEO & Whole-time
+Director of Sun Pharma Laboratories Limited ("SPLL"), a wholly
+owned subsidiary of the Company at its Annual General Meeting
+held on September 25, 2018 for a further period of 2 (two) years i.e.
+from February 13, 2019 to February 12, 2021, at a remuneration as
+decided by the Board of Directors of SPLL.
+At the 26th Annual General Meeting of the Company, the Members
+had approved the re-appointment of Mr. Kalyanasundaram
+Subramanian (DIN: 00179072) ("Kal") as Whole-time Director for a
+further period of 2 (Two) years with effect from February 14, 2019 to
+February 13, 2021 without any remuneration.
+None of the existing Directors or Key Managerial Personnel or their
+relatives, other than Ms. Rekha Sethi, and her relatives, are deemed
+to be concerned or interested in this resolution.
+Item No. 7:
+The applications made to the Central Government and the
+correspondence thereafter with the Ministry of Corporate Affairs
+are available for inspection by any member of the Company at
+the Registered Office of the Company on all working days except
+Saturdays and Sundays between 11:00 a.m. IST and 1:00 p.m. IST up
+to the date of this 27th Annual General Meeting and at the venue of
+this Annual General Meeting during Meeting hours.
+PHARMA
+A scanned copy of the Registration Form bearing the
+stamp and sign of the entity should be emailed to
+helpdesk.evoting@cdslindia.com.
+Non-Individual shareholders (i.e. other than
+Individuals, HUF, NRI etc.) and Custodian are
+required to log on to www.evotingindia.com and
+register themselves as Corporates
+•
+(viii) After entering these details appropriately, click on
+"SUBMIT" tab.
+(ix) Members holding shares in physical form will then
+directly reach the Company selection screen. However,
+members holding shares in demat form will now reach
+'Password Creation' menu wherein they are required
+to mandatorily enter their login password in the new
+Annual Report 2018-19
+254 Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+(x)
+password field. Kindly note that this password is to be
+also used by the demat holders for voting for resolutions
+of any other company on which they are eligible to vote,
+provided that company opts for e-voting through CDSL
+platform. It is strongly recommended not to share your
+password with any other person and take utmost care to
+keep your password confidential.
+For Members holding shares in physical form, the
+details can be used only for e-voting on the resolutions
+contained in this Notice.
+(xi) Click on the EVSN for Sun Pharmaceutical Industries
+Limited to vote.
+(xii) On the voting page, you will see "RESOLUTION
+DESCRIPTION" and against the same option "YES/NO"
+for voting. Select the option YES or NO as desired. The
+option YES implies that you assent to the Resolution and
+option NO implies that you dissent to the Resolution.
+(xiii) Click on the "RESOLUTIONS FILE LINK" if you wish to
+view the entire Resolution details.
+(xiv) After selecting the resolution you have decided to
+vote on, click on "SUBMIT". A confirmation box will be
+displayed. If you wish to confirm your vote, click on
+"OK", else to change your vote, click on "CANCEL" and
+accordingly modify your vote.
+(xv) Once you "CONFIRM" your vote on the resolution, you
+will not be allowed to modify your vote.
+(xvi) You can also take out print of the voting done by you by
+clicking on "Click here to print" option on the Voting page.
+(xvii) If Demat account holder has forgotten the changed
+password then Enter the User ID and the image
+verification code and click on Forgot Password & enter
+the details as prompted by the system.
+(xviii) Shareholders can also cast their vote using CDSL's mobile
+app m-Voting available for android based mobiles. The
+m-Voting app can be downloaded from Google Play
+Store. Apple and Windows phone users can download
+the app from the App Store and the Windows Phone
+Store respectively. Please follow the instructions as
+prompted by the mobile app while voting on your mobile.
+(xix) Note for Non - Individual Shareholders and Custodians
+As per the provisions of Section 197 (10) of the Act as amended
+by the Companies (Amendment) Act, 2017, the recovery of excess
+remuneration refundable to the Company needs to be approved by
+the members by special resolution within two years from the date
+the sum becomes refundable or within one year from the date of
+Notification i.e. upto September 11, 2019. Therefore, consent of
+the members of the Company is again being sought for passing of a
+Special Resolution as set out in Item No. 6 to waive the recovery of
+the aforementioned excess commission paid. The Board of Directors
+recommends the special resolution as set out in Item no. 6 for
+approval of the members.
+Government for non recovery of excess commission to the Non-
+Executive Directors, the Company had on October 22, 2018 and
+October 23, 2018 received e-mails and letters stating interalia that
+the aforesaid applications made by the Company for commission
+paid to Mr. Hasmukh S. Shah, Mr. Keki M. Mistry and Mr. Ashwin S.
+Dani, Mr. S Mohanchand Dadha, Ms. Rekha Sethi respectively, stood
+abated.
+Consequently, pursuant to the above amendment and in response
+to the applications made by the Company in 2014 to the Central
+The Company had then made application to Central Government in
+2014 for the approval of waiver of the aforementioned commission.
+However, the same remained pending for approval till last year.
+Thereafter, in view of the Notification No. S.O. 4823 (E) dated
+September 12, 2018, Section 197(15) of the Companies Act, 2013
+('the Act') as amended by Companies (Amendment) Act, 2017 was
+notified and thus all the applications pending approval of Central
+Government were abated.
+None of the Directors or Key Managerial Personnel or their relatives
+are in anyway concerned or interested in the above resolution as set
+out in Item no. 5 of this Notice.
+The Board recommends the resolution as set out at item no. 5 of the
+Notice for approval of the members as an Ordinary Resolution.
+Therefore, consent of the members of the Company is being sought
+for ratification of the remuneration payable to the Cost Auditors for
+the financial year ending March 31, 2020.
+255
+NOTICE >
+Specialty in progress
+In terms of provisions of Section 148(3) of the Companies Act, 2013
+read with Companies (Audit and Auditors) Rules, 2014, member's
+ratification is required for remuneration payable to the Cost
+Auditors.
+M/s. B M Sharma & Associates, Cost Accountants, have been
+appointed as the Cost Auditors by the Board of Directors of
+the Company on recommendation of the Audit Committee, for
+conducting audit of cost records pertaining to the formulations and
+bulk drugs activities of the Company for the financial year ending
+March 31, 2020 at a remuneration of 22,50,000/- (Rupees twenty
+two lakhs fifty thousand only) excluding reimbursement of out of
+pocket expenses and applicable taxes.
+Item No. 5:
+As required under Section 102 of the Companies Act, 2013, the
+following Explanatory Statement sets out material facts relating
+to the Special Business as set out at Item Nos. 5,6 and 7 of the
+accompanying Notice dated July 05, 2019.
+The Scrutinizer will, immediately after the conclusion of
+electronic voting system at the venue of the Meeting, start
+scrutinizing the votes cast at the Meeting by electronic
+voting alongwith remote e-voting and prepare a consolidated
+Scrutinizer's Report and submit thereafter to the Chairman of the
+Meeting or any person authorised by him in writing. The result
+declared along with the consolidated Scrutinizer's Report will be
+placed on the Company's website at www.sunpharma.com and on
+the website of CDSL at www.evotingindia.com within 48 hours of
+the conclusion of the Meeting. The Company will simultaneously
+forward the results to BSE Limited and National Stock Exchange
+of India Limited, where the shares of the Company are listed.
+EXPLANATORY STATEMENT PURSUANT TO SECTION 102
+OF THE COMPANIES ACT, 2013
+1800225533
+helpdesk.evoting@cdslindia.com
+Maharashtra, India.
+Mumbai 400 013,
+Lower Parel (East),
+NM Joshi Marg,
+Mafatlal Mills Compounds,
+CDSL, A Wing, 25th Floor,
+Marathon Futurex,
+Mr. Rakesh Dalvi
+Manager
+Toll Free Number :
+Item No. 6:
+Any person who becomes a member of the Company after
+dispatch of the Notice and holds shares of the Company
+as on the cut-off date i.e. Wednesday, August 21, 2019
+and whose PAN is not registered with the Company may
+obtain the e-voting code detail by writing to the Registrar
+& Share Transfer Agents of the Company at rnt.helpdesk@
+linkintime.co.in or secretarial@sunpharma.com or contact
+Mr. Ashok Bhuta, Compliance Officer.
+At the 20th Annual General Meeting of the Company, the Members
+had approved the payment of commission to Non-executive Directors
+(apart from the Managing Director and Whole-time Directors) of the
+Company for a period of five years from the financial year ended 31st
+March, 2013 upto and including financial year of the Company ending
+as on 31st March, 2017. The Company earlier had a practice of paying
+commission to the independent directors.
+The total amount of commission and sitting fees paid to Non-
+Executive Directors for the year 2013-14 is as follows:
+#Was appointed w.e.f 13th February, 2014 therefore amount of
+commission mentioned herein above is on proportionate basis, for the
+period from 13th February, 2014 to 31st March, 2014.
+70,000
+70,000
+35,000
+45,000
+5,000
+3,75,000#
+5 Ms. Rekha Sethi
+15,00,000
+Mr. Ashwin S. Dani
+4
+15,00,000
+Mr. Keki M. Mistry
+3
+15,00,000
+Mr. Hasmukh S. Shah
+2
+15,00,000
+Mr. S Mohanchand Dadha
+1
+Actual Amount of
+Commission paid
+during 2013-14
+No
+Particulars
+Sr.
+Amount in
+Sitting Fees
+paid during
+2013-14
+The remuneration by way of commission was paid to the Non-
+Executive Directors of the Company for the financial year 2013-14
+in accordance with the above said resolution. However, consequent
+to giving effect to the Scheme of Arrangement, for merger of
+Specified Undertaking of Sun Pharma Global FZE, into the Company
+effective from May 01, 2013, resulted in absence of net profits in the
+Company for the aforesaid year. The commission of 6.4 million for
+the year ended 31st March, 2014, to the Non-Executive Directors
+of the Company had therefore exceeded in terms of Section 309(4)
+read with Section 309(5) of the Companies Act, 1956. Thereafter,
+the following commission paid to non-executive Directors of the
+Company was ratified / approved by the members of the Company
+at the 22nd Annual General Meeting of the Company held on
+September 27, 2014 subject to approval of the Central Government.
+The Directors of the Company were paid sitting fees of 5000/- per
+meeting during the financial year 2013-14.
+Particulars
+• If both the details are not recorded with
+the depository or company please enter
+the member id / folio number in the
+Dividend Bank details field as mentioned
+in instruction (iv).
+• Members who have not updated their
+PAN with the Company / Depository
+Participant are requested to use the
+e-voting code which is printed on address
+label on the envelope for the Annual
+Report sent in Physical, in the PAN field.
+For those having email IDs the e-voting
+code is sent by email.
+Route Map to 27th AGM Venue
+Crystal Hall, Grand Mercure Vadodara Surya Palace, Vadodara
+Prominent Landmark: Opposite Parsi Agyari, Sayajigunj
+Vadodara OO
+4-6 mins
+1.3 km
+Police Stati
+Sayajiganj Police Station
+સયાજીગંજ
+પોલીસ સ્ટેશન
+...חג
+Sayaji Hotel, Vadodara
+Lalita Tower
+લલિતા ટાવર
+વડોદરા
+bhai Patel
+lospital
+Overhead
+Water Tank
+Blue dart
+બ્લૂ ડાર્ટ
+Baroda museum M
+India Bulls
+ભારત બુલ્સ
+LLY
+સયાજી હોટલ
+and
+Annual Report 2018-19
+201 Equity Shares
+Brief resume of the Director
+including nature of expertise in
+specific functional areas:
+Mr. Kalyanasundaram Subramanian (“Mr. Kal")
+65 Years
+Mr. Kal joined Sun Pharmaceutical Industries Limited (SPIL) in January 2010 after 22 years with GSK in
+various parts of the world.
+Mr. Kal is a Chemistry graduate and a Chartered Accountant from India with 38 years of experience of
+which some 31 years in the pharmaceutical industry.
+Mr. Kal's career in Pharma industry began when he joined Burroughs Wellcome, in New Zealand as
+Commercial Advisor in 1988. His long and varied career with Burroughs Wellcome in New Zealand
+which was acquired by Glaxo to become GlaxoWellcome and finally GlaxoSmithKline, includes
+assignments as Vice President, head of Classic Brands business of Emerging Markets; Area Director
+South Asia & Managing Director, GSK India; Managing Director - GlaxoWellcome, Singapore (Singapore,
+Indochina & Myanmar). Commercial Director - Burroughs Wellcome, New Zealand.
+In 2010, Mr. Kal Joined SPIL as the Chief Executive Officer to manage India and Emerging Markets
+(EM) and was a board member of the Company. Mr. Kal spearheaded opening of SPIL operations in few
+important markets such as Japan, MENA. In 2012, Mr. Kal moved to USA to assume responsibility for
+Taro operations in North America.
+In January 2017, Mr. Kal moved back to India to manage India and EM regions of SPIL.
+He was also a Whole-time Director and CEO of Sun Pharma Laboratories Limited till July 04, 2019. He
+is now Non-Executive Director in SPLL.
+Date of First appointment on the February 14, 2017
+Board:
+Directorship held in other
+companies (excluding foreign
+companies & section 8
+companies):
+Membership / Chairmanships
+of Committees of other public
+Companies:
+1. Sun Pharma Laboratories Limited
+2. Sun Pharma Distributors Limited
+Sun Pharma Laboratories Limited -
+Member of Corporate Social Responsibility Committee
+Inter-se Relationship between
+Directors:
+No. of Shares held in the
+Company (singly or jointly as first
+holder) as on March 31, 2019:
+None
+0
+Facult
+Sardar Vallabhbhai Patel
+In
+The members should log on to the e-voting website
+www.evotingindia.com.
+(iii)
+Click on Shareholders / Members tab.
+(iv) Now Enter your User ID
+(v)
+a.
+For CDSL: 16 digits beneficiary ID,
+b.
+For NSDL: 8 Character DP ID followed by 8
+Digits Client ID,
+C.
+Members holding shares in Physical Form
+should enter Folio Number registered with the
+Company.
+Next enter the Image Verification as displayed and
+Click on Login.
+(vi) If you are holding shares in demat form and had
+logged on to www.evotingindia.com and voted on
+an earlier voting of any company, then your existing
+password is to be used.
+(vii) If you are a first time user, follow the steps given
+below:
+PAN
+Dividend
+Bank
+Details
+OR Date
+of Birth
+(DOB)
+For Members holding shares in Demat Form and
+Physical Form
+Enter your 10 digit alpha-numeric PAN
+issued by Income Tax Department
+(Applicable for both demat shareholders as
+well as physical shareholders)
+(ii)
+Enter the Dividend Bank Details or Date of
+Birth (in dd/mm/yyyy format) as recorded
+in your demat account or in the Company
+records in order to login.
+The voting period begins on Sunday, August 25,
+2019 at 09:00 a.m. and ends on Tuesday, August 27,
+2019 at 05:00 p.m. During this period, members of
+the Company, holding shares either in physical form
+or in dematerialized form, as on the cut-off date of
+Wednesday, August 21, 2019, may cast their vote
+electronically. The remote e-voting module shall be
+disabled by CDSL for voting thereafter.
+The procedure and instructions for members voting by
+remote e-voting are as under:
+સરદાર
+વલ્લભભાઈ પટેલ
+Lemon Tree
+Hotel Vadodara
+300
+Axis Bank
+લેમન ટ્રી
+હોટેલ વડોદરા
+ICICI Bank Vasna,
+Vadodara Branch &...
+Jara - Branch &
+Grand Mercure
+Vadodara Surya Palace
+NOTICE >
+Agyari
+Jetalpur Rd
+(d)
+(e)
+(f)
+In accordance with the applicable provisions of the
+Listing Regulations and the Act, read with Companies
+(Management and Administration) Rules, 2014 including
+any amendments thereto, the Company is pleased
+to provide facility to its members, to cast their vote
+electronically for all the resolutions proposed at the 27th
+Annual General Meeting. The Company has appointed
+CDSL to provide e-voting facilities to its members.
+The voting right of members shall be in proportion to
+one vote per fully paid equity share of the Company held
+by them as on the cut-off date Wednesday, August 21,
+2019.
+The remote e-voting period begins on Sunday, August
+25, 2019 at 09:00 a.m. and ends on Tuesday, August
+27, 2019 at 05:00 p.m. During this period, members
+of the Company, holding shares either in physical
+form or in dematerialized form, as on the cut-off date
+i.e. Wednesday, August 21, 2019, may cast their vote
+electronically. The remote e-voting module shall be
+disabled by CDSL for voting thereafter.
+The facility for voting through electronic means shall also
+be made available at the Meeting and members of the
+Company as of cut-off date, attending the Meeting who
+have not already cast their vote by remote e-voting shall
+be able to exercise their right to vote at the Meeting. The
+members who have cast their vote by remote e-voting
+prior to the Meeting may attend the Meeting but shall
+not be entitled to cast their vote again.
+Mr. Chintan Goswami, Partner of KJB & Co LLP and
+failing him Mr. Alpeshkumar Panchal, Partner of KJB & Co
+LLP, Practicing Company Secretaries, Mumbai, has been
+appointed by the Board of Directors of the Company, as
+the Scrutinizer to scrutinize the e-voting process (remote
+e-voting and electronic voting at the venue) in a fair and
+transparent manner and they have communicated their
+willingness to be appointed as such and that they are
+available for the said purpose.
+(i)
+Sudhir V. Valia
+6
+Plot No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063, Maharashtra, India.
+Tel: (+91 22) 4324 4324, Fax: (+91 22) 4324 4343
+3.
+All alterations made in the form of proxy should be initialed.
+2.
+at least 48 (Forty Eight) hours before the scheduled time of the commencement of the said Meeting.
+The form of Proxy must be deposited at the Registered Office of the Company at SPARC, Tandalja, Vadodara - 390 012, Gujarat, India,
+1/-
+Stamp of
+Affix
+Revenue
+2019
+day of
+Signed this
+1.
+Note:
+Please affix appropriate revenue stamp before putting signatures.
+Signature of Proxy holder(s):
+Special Resolution for consent/ratification of excess commission paid to Non-executive Directors for the year 2013-14 pursuant to
+the letter received from MCA in respect of abatement of the pending applications for approval of remuneration.
+Special Resolution for approval of remuneration to be paid to Mr. Kalyanasundaram Subramanian, Whole-time Director, with
+effect from July 04, 2019
+Ordinary Resolution for ratification of remuneration of, M/s. B M Sharma & Associates, Cost Auditors.
+SPECIAL BUSINESS:
+Re-appointment of Mr. Kalyanasundaram Subramanian (DIN: 00179072), who retires by rotation and being eligible offers himself
+for re-appointment
+Re-appointment of Mr. Sailesh T. Desai (DIN: 00005443), who retires by rotation and being eligible offers himself for re-
+appointment
+Declaration of dividend on equity shares for the financial year ended March 31, 2019
+b. Adoption of audited consolidated financial statements of the Company for the financial year ended March 31, 2019 and the
+reports of the Auditors thereon
+a. Adoption of audited standalone financial statements of the Company for the financial year ended March 31, 2019 and the
+reports of the Board of Directors and Auditors thereon
+ORDINARY BUSINESS:
+7.
+6.
+5.
+4.
+Signature of Shareholder:
+23
+4.
+Corporate Information
+6
+Ohm Laboratories Inc., Terminal Road,
+New Brunswick, New Jersey 08901, US
+SUN
+PHARMA
+SUN HOUSE
+CIN: L24230GJ1993PLC019050
+www.sunpharma.com
+/concept, content and design at AICL (hello@aicl.in)
+Ponda, Goa, India
+5
+Dadra, Dadra & Nagar Haveli, India
+4
+In case of multiple proxies, the proxy later in time shall be accepted.
+Baddi, Himachal Pradesh, India
+Sun Pharmaceutical Industries Inc.,
+Cranbury, New Jersey, US
+Karkhadi, Gujarat, India
+2
+38
+Dewas, Madhya Pradesh, India
+123 4
+37 Pharmalucence Inc., Billerica
+Massachusetts, US
+Operational manufacturing plants
+Managing Director
+Dilip S. Shanghvi
+Chairman
+Israel Makov
+Board of Directors
+3
+Ontario L6T 1C1, Canada
+3.
+1.
+PHARMA
+SÜN
+Cut here
+*Members who have not updated their PAN with the Company/ Depository
+Participant shall use e-voting code printed on the address label on the envelope in
+the PAN field. For those having email IDs the e-voting code is sent by email.
+* PAN
+Use your DP ID/ Client
+ID/ Folio No.
+Use your PAN.
+User ID
+190715011
+(Electronic Voting Sequence Number)
+EVSN
+(2) Member/Proxy holder desiring to attend the meeting should bring his/her copy of the Notice and Annual Report for reference at the meeting.
+ELECTRONIC VOTING PARTICULARS
+(1) Member/ Proxy holder wishing to attend the meeting must bring the Attendance Slip to the meeting and hand it over at the entrance duly
+signed.
+Sun Pharmaceutical Industries Ltd.
+...Signature of Proxy:.
+SignatureoftheAttending Member:..
+Joint Holder2:..
+JointHolder1:...
+Nameandaddressofthe Member:.
+.No.ofshares...
+Registered Folio/DPID&ClientID...
+I/We hereby record my presence at the Twenty Seventh Annual General Meeting of the Company at Crystal Hall, Grand Mercure Vadodara
+Surya Palace, Opposite Parsi Agyari, Sayajigunj, Vadodara - 390 020, Gujarat, India on Wednesday, August 28, 2019 at 03:15 P.M. IST
+TWENTY SEVENTH ANNUAL GENERAL MEETING ON WEDNESDAY, AUGUST 28, 2019 AT 3:15 P.M.
+ATTENDANCE SLIP
+Registered Office: SPARC Tandalja, Vadodara - 390 012, Gujarat, India Tel Nos: 0265-6615500/600/700 Fax No: 0265-2354897
+Corporate Office: Sun House, Plot No. 201 B/1, Western Express Highway, Goregaon -East, Mumbai - 400 063, India.
+CIN: L24230GJ1993PLC019050 Website: www.sunpharma.com Email: secretarial@sunpharma.com
+Sun Pharmaceutical Industries Ltd.
+PHARMA
+SUN
+NOTES:
+2.
+Registered Office: SPARC Tandalja, Vadodara - 390 012, Gujarat, India Tel Nos: 0265-6615500/600/700 Fax No: 0265-2354897
+Corporate Office: Sun House, Plot No. 201 B/1, Western Express Highway, Goregaon -East, Mumbai - 400 063, India.
+CIN: L24230GJ1993PLC019050 Website: www.sunpharma.com Email: secretarial@sunpharma.com
+[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014]
+[Form MGT-11]
+No.
+Resolution Resolution
+as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Twenty Seventh Annual General Meeting of the
+Company, to be held on Wednesday, August 28, 2019 at 03:15 P.M. at Crystal Hall, Grand Mercure Vadodara Surya Palace, Opposite
+Parsi Agyari, Sayajigunj, Vadodara - 390 020, Gujarat, India and at any adjournment thereof in respect of such resolutions as are indicated
+overleaf:
+......orfailinghim/her;
+..Address:..
+.Signature:.
+.orfailinghim/her;
+.Signature:.
+..Address:..
+or failing him / her;
+.Signature:
+..Address:..
+shares of Sun Pharmaceutical Industries Limited, hereby appoint:
+.Folio No./DPld & ClientId:.
+PROXY FORM
+E-mailld:..
+3.
+E-mailld:..
+Name:....
+2.
+E-mail Id:
+Name:..
+1.
+I/We, being the member(s), holding.
+E-mailld:...
+Joint Holder(s):..
+No.of Sharesheld:.
+Registeredaddress:...
+Nameofthemember:.
+Name:.....
+Drive, Brampton,
+USA
+Canada
+Ashwin Dani
+Director (upto September 26, 2018)
+Rekha Sethi
+Director
+Vivek Chaand Sehgal
+Director
+Gautam Doshi
+Director (appointed w.e.f. May 25, 2018)
+Chief Financial Officer
+C. S. Muralidharan
+Company Secretary
+Sunil R. Ajmera
+Auditors
+SRBC & Co. LLP
+19
+Chartered Accountants, Mumbai
+Link Intime India Pvt. Ltd.
+C 101, 247 Park,
+LBS Marg, Vikhroli (West),
+Mumbai
+400 083
+Tel: (022)-49186000
+Fax: (022)-49186060
+E-mail: sunpharma@linkintime.co.in,
+rnt.helpdesk@linkintime.co.in
+Kuala Lumpur, Malaysia
+30 Ranbaxy Nigeria Ltd.,
+Lagos (Magboro), Nigeria
+Taro Pharmaceuticals Inc., 130 East
+Registrars & Share Transfer Agents
+Director (upto September 26, 2018)
+18
+Keki M. Mistry
+Halol, Gujarat, India
+Whole-time Director
+7
+Mohali, Punjab, India
+(Designation changed from Whole-time
+8
+Paonta Sahib, Himachal Pradesh, India
+Director to Non-executive and Non
+9
+Silvassa, Dadra & Nagar Haveli, India
+independent Director w.e.f. May 29, 2019)
+10
+11
+Ahmednagar, Maharashtra, India
+Ankleshwar, Gujarat, India
+Sailesh T. Desai
+12
+Dahej, Gujarat, India
+Whole-time Director
+13
+Mr. Kalyanasundaram Subramanian
+14
+Whole-time Director
+15
+16
+Toansa, Punjab, India
+S. Mohanchand Dadha
+17
+Director (upto September 26, 2018)
+Sun Pharma Laboratories Ltd.,
+Guwahati, Assam, India
+32
+33
+31 S.C Terapia S. A. Cluj, Romania
+34
+Sun Pharma Laboratories Ltd.,
+Jammu, Jammu & Kashmir, India
+Sun Pharma Laboratories Ltd.,
+Ranipool, Sikkim, India (Unit 1)
+Sun Pharma Laboratories Ltd.,
+Ranipool, Sikkim, India (Unit II)
+Sun Pharmaceutical Medicare Ltd.,
+Baska, Gujarat, India
+JSC Biosintez, Penza, Russia
+Ranbaxy Pharmaceuticals Pty Ltd.
+Pola Pharma Inc, Saitama, Japan (Unit 1)
+Pola Pharma Inc, Saitama, Japan (Unit II)
+Offices
+Registered office
+Sun Pharma Advanced Research
+Centre (SPARC),
+Tandalja,
+Vadodara 390 012, Gujarat
+Corporate office
+Sun House, Plot No. 201 B/1,
+Western Express Highway,
+Goregaon (E), Mumbai 400063,
+Maharashtra
+CIN: L24230GJ1993PLC019050
+Tel: (022)-4324 4324
+Fax: (022)-4324 4343
+E-mail: secretarial@sunpharma.com
+Major R&D centres
+Panoli, Gujarat, India
+1
+Sun Pharma Advanced Research Centre,
+F.P.27, Part Survey No. 27, C.S. No.
+1050, TPS No. 24, Village Tandalja,
+District Vadodara - 390 012, Gujarat
+39
+40
+17-B, Mahal Industrial Estate, Mahakali
+Caves Road, Andheri (East),
+Mumbai - 400 093, Maharashtra
+5
+Village Sarhaul, Sector-18,
+Gurgaon-122 015, Haryana
+Chemistry and Discovery Research
+Israel, 14 Hakitor Street, P.O. Box 10347
+Haifa Bay 2624761, Israel
+India
+Malanpur, Madhya Pradesh, India
+Sun Pharmaceutical Industries
+(Australia) Pty Ltd.
+22
+Chattem Chemicals, Inc.,
+Chattanooga, US
+35 Dusa Pharmaceuticals Inc.,
+Wilmington, Massachusetts, US
+36 Ohm Laboratories, Inc.,
+Brunswick, New Jersey, US
+23 Sun Pharmaceutical Industries
+(Australia) Pty Ltd.
+24 Sun Pharmaceutical (Bangladesh) Ltd.,
+Joydevpur, Gazipur, Bangladesh
+Maduranthakam, Tamil Nadu, India
+India
+25 Taro Pharmaceuticals Inc.,
+Brampton, Ontario, Canada
+26 Ranbaxy Egypt (L.L.C.),
+2
+3
+22
+21
+October City, Giza, Egypt
+20
+20
+29 Ranbaxy Malaysia Sdn. Bhd.,
+23
+4
+Taro Pharmaceutical Industries Ltd.,
+Haifa Bay, Israel
+28
+27 Alkaloida Chemical Company Zrt,
+Tiszavasvari, Kabay, Hungary
+India
+Israel
+-3
+%
+3.3
+3.2
+Debtors turnover
+18
+5.5
+6.4
+Return on net worth
+%
+FY18
+FY19
+Unit
+Consolidated
+Ratios
+Table 6
+Financial ratios
+STATUTORY REPORTS > Management Discussion and Analysis
+Inventory turnover
+Variance (%)
+Operating profit margin
+1.0
+-8
+• Received USFDA approval for Cequa.
+• Launched specialty products-llumya, Yonsa and Xelpros-in the US.
+• Obtained USFDA approval for llumya.
+• Launched Odomzo in the US.
+Acquired odomzo, a branded oncology product from Novartis.
+.
+FY19
+FY18
+• Launched BromSite in the US ophthalmology segment.
+• Acquired Ocular Technologies-gaining access to Cequa—a product for treating dry eyes.
+• Filed tildrakizumab in the US and Europe.
+Strengthened specialty ophthalmic portfolio with the acquisition of InSite Vision.
+• In-licensed llumya (tildrakizumab)-strengthened specialty dermatology portfolio by gaining access to global rights
+including the US.
+Acquired DUSA to enter the branded specialty dermatology market.
+FY19 highlights
+FY17
+FY15
+.
+FY13
+Acquired Taro Pharma to penetrate the US dermatology market.
+•
+FY10
+• Entered the US market through Caraco acquisition.
+Journey in the US - key milestones
+Events
+Years
+FY98
+Table 8
+Sun Pharma is the eighth largest generic pharmaceutical
+company in the US, with presence across generics, specialty,
+branded and OTC segments. It offers a comprehensive
+portfolio of 453 ANDAs and 51 NDAs approved across
+multiple therapies.
+As on March 31, 2019, Sun Pharma had 118 ANDAS
+and 8 NDAs pending USFDA approval, including a
+combination of complex generics, patent challenge
+opportunities and pure generics.
+Strong product pipeline in the US
+The Company's key focus areas encompass central
+nervous system (CNS), dermatology, cardiology, oncology
+and ophthalmic, among others. It has integrated
+USFDA-approved on-shore as well as off-shore
+manufacturing facilities that produce a variety of dosage
+forms, including liquids, creams, ointments, gels, sprays,
+injectables, tablets, capsules and drug-device combinations.
+FY16
+•
+•
+Revenue from the US increased by 22% to 106,713 Million.
+Road ahead
+(Cumulative numbers for FY16 are lower than FY15 due to Bryan facility
+divestment. Ranbaxy numbers added with effect from March 2015)
+FY19
+FY18
+FY17
+FY16
+FY15
+344
+422
+427
+413
+438
+453
+FY14
+478
+101
+571
+Key growth drivers include increase in generic sales, incremental contribution from specialty product launches and a
+favourable foreign exchange rate.
+The US generic market continued to be highly competitive and witnessed price erosion, driven by higher bargaining
+power of customers and faster pace of generic approvals from the USFDA.
+Annual Report 2018-19
+22
+Sun Pharmaceutical Industries Ltd.
+Chart 5 ANDAS filed and approved
+51
+Chart 6
+Cumulative ANDAS approved (Nos.)
+597
+118
+572
+584
+561
+Cumulative ANDAS filed (Nos.)
+Patent expiries and the US government's focus on reducing
+healthcare costs will continue to favour the growth of
+low-cost generics in the US market.
+NDAS approved
+(Nos.)
+2
+In August 2018, Sun Pharma received approval for
+CEQUA (cyclosporine ophthalmic solution) 0.09%, from
+the USFDA. CEQUA increases tear production in patients
+with dry eyes. It is the first and only approved dry eye
+treatment to combine cyclosporine A with nanomicellar
+technology.
+In July 2018, DUSA Pharmaceuticals, Inc., (DUSA) a
+wholly owned subsidiary of Sun Pharma, announced
+that it filed trade secret misappropriation and tortious
+interference claims in an ongoing patent infringement
+lawsuit against Biofrontera Inc. The patents-in-suit
+concerned an apparatus and method for photodynamic
+therapy (PDT) as well as an equipment for it.
+Pioneered by DUSA, PDT combines a drug with a light
+source to treat disease conditions. In December 2018,
+DUSA was granted preliminary injunctive relief by a
+federal district court prohibiting defendant Biofrontera
+(including Biofrontera Inc., Biofrontera Bioscience GmbH
+Biofrontera Pharma GmbH, and Biofrontera AG) from
+using DUSA's confidential and proprietary trade secret
+information.
+PHARMA
+SUN
+Sun Pharmaceutical Industries Ltd.
+20
+Annual Report 2018-19
+In July 2018, Sun Pharma announced the USFDA
+approval for INFUGEM™ (gemcitabine in 0.9% sodium
+chloride injection) 10 mg/mL, for intravenous use in
+a ready-to-administer (RTA) bag. INFUGEM™ uses a
+proprietary technology, which allows cytotoxic oncology
+products to be premixed in a sterile environment
+and supplied to the prescribers in RTA infusion bags.
+It involves dose banding practice, whereby standardised
+doses of intravenous cytotoxic drugs are used for ranges
+(or 'bands') of doses calculated for individual patients.
+The RTA bags will provide greater safety by preventing
+problems of over-dosing or under-dosing, by eliminating
+contamination risk that can lead to infections, and by
+taking care of problems associated with and precautions
+to be taken while, handling cytotoxic drugs by healthcare
+providers.
+In July 2018, Sun Pharma announced Bollywood actor
+Akshay Kumar as its brand ambassador for Revital
+H. He is known for his high energy levels and was a
+natural fit for the product, which is India's leading and
+most trusted health supplement for over two decades.
+The Company launched a 360° marketing campaign
+featuring the actor and the brand that helps keep one's
+energy and stamina high throughout the day.
+approvals have commenced from the facility post the
+receipt of EIR.
+.
+In June 2018, Sun Pharma received the Establishment
+Inspection Report (EIR) from the USFDA for the
+inspection conducted at its Halol facility in Gujarat (India)
+during the previous financial year. The receipt of the EIR
+implies that the issues contained in the Warning Letter
+dated December 2015 have been addressed. New ANDA
+In May 2018, Sun Pharma received USFDA approval for
+YONSA® (abiraterone acetate), a novel formulation in
+combination with methylprednisolone to treat patients
+with metastatic castration-resistant prostate cancer
+(mCRPC). This approval has further strengthened the
+Company's oncology portfolio in the US.
+In April 2018, Sun Pharma entered the anti-fungal
+powder OTC category in India with ABZORB. The brand
+was co-promoted across prescription and OTC channels
+through a 360° marketing campaign comprising TV,
+print and digital, to expand consumer outreach and
+drive growth. ABZORB has a unique combination of
+talc and starch that ensures superior sweat absorption.
+It also contains clotrimazole-one of the best-in-class
+anti-fungals-to help treat infection and prevent
+its recurrence. The new packaging with an angular
+dispensing nozzle enhances consumer experience
+through targeted application.
+• In August 2018, Sun Pharma launched a Kapspargo
+Sprinkle (metoprolol succinate) extended-release sprinkle
+formulation in the US. The product will help treat
+hypertension (high blood pressure), angina pectoris (chest
+pain) and heart failure. These extended-release coated
+pellets can be sprinkled over soft food or administered
+via a nasogastric tube to facilitate long-term once-daily
+administration for patients who experience difficulty
+while swallowing.
+-9
+FY19 operational highlights
+On account of increased total revenue
+from operations by 14%, along with cost
+containment
+11%, along with cost containment
+On account of better revenue from
+contracts with customers which grew by
+Reasons if variance is more than 25%
+Return on net worth is higher for the year
+ended March 31, 2019 due to higher profit
+after tax
+19
+140
+3.5
+8.3
+%
+Net profit margin
+49
+8.5
+12.6
+•
+•
+•
+.
+(%)
+FY14-19
+revenue CAGR
+453
+(Nos.)
+ANDAS approved
+Cumulative
+106,713
+(* Million)
+Revenue in FY19
+571
+Cumulative
+ANDAs filed
+(Nos.)
+37
+(%)
+Revenue share
+US BUSINESS
+Business segment review
+21
+In August 2018, the Company announced the launch
+of Volini Maxx, India's strongest pain relief spray. It also
+signed Virat Kohli, captain of Indian cricket team as
+Volini's brand ambassador.
+In September 2018, Sun Pharma announced USFDA
+approval for the NDA of XELPROSTM (latanoprost
+ophthalmic emulsion) 0.005%. The medicine is used
+for the reduction of elevated intraocular pressure (IOP
+or pressure inside the eye) in patients with open-angle
+glaucoma or ocular hypertension. XELPROS™ is the
+first and only form of latanoprost that is not formulated
+with benzalkonium chloride (BAK), a commonly used
+preservative in topical ocular preparations. It was
+in-licensed by Sun Pharma from Sun Pharma Advanced
+Research Company Ltd. (SPARC) in June 2015; and is
+developed using SPARC's proprietary swollen micelle
+microemulsion (SMM) technology.
+In September 2018, Sun Pharma announced that its
+European partner, Almirall, received the European
+•
+Commission (EC) approval for ILUMETRI® (tildrakizumab)
+to treat adults with moderate-to-severe chronic plaque
+psoriasis, who are candidates for systemic therapy.
+In September 2018, Sun Pharma received the Australian
+Therapeutic Goods Administration (TGA) approval for
+its specialty product, ILUMYATM (tildrakizumab) to treat
+adults with moderate-to-severe plaque psoriasis and are
+candidates for systemic therapy.
+Cumulative
+In October 2018, Sun Pharma launched ILUMYA™
+(tildrakizumab-asmn) 100 mg/mL in the US for treating
+moderate-to-severe psoriasis.
+Pola Pharma had annual revenues of approximately
+US$ 108 Million and net loss of US$ 7 Million for 12
+months ended December, 2017 on a consolidated basis.
+This acquisition strengthens Sun Pharma's presence
+in Japan and accelerates access to the Japanese
+dermatology market.
+FY20 outlook
+Sun Pharma's sustained focus is on growing each of its
+businesses faster than the market in which they operate.
+Its global specialty initiatives will supplement this objective
+as an additional growth engine. Although the US generics
+industry continues to face pricing pressure, the industry
+has started responding to these challenges by rationalising
+product portfolios and discontinuing non-remunerative
+products. Generics will continue to be an integral part of the
+solution to control global healthcare costs as well as play an
+important role in overall healthcare management.
+Sun Pharma will continue to invest in the generic business
+with a focus on developing differentiated complex generics
+and building a product pipeline across markets. Its global
+specialty business is also expected to ramp up gradually.
+Investments in branding and promotion of specialty products
+and in funding clinical trials for specialty products will
+continue. For FY20, the Company expects its consolidated
+revenues to grow by low-to-mid teens, while R&D
+investments are estimated at ~8-9% of sales.
+Specialty in progress
+STATUTORY REPORTS > Management Discussion and Analysis
+In November 2018, Sun Pharma entered into a definitive
+agreement to acquire Pola Pharma Inc. (Pola Pharma),
+a Japanese pharmaceutical company. Pola Pharma is
+engaged in R&D, manufacture, sale and distribution
+of branded and generic products in Japan. Its portfolio
+primarily comprises dermatology products and it has
+two manufacturing facilities in Japan with capabilities
+to manufacture topical products and injectables, along
+with R&D capabilities to develop new technologies and
+formulations.
+Going forward, the Company will focus on:
+• Growing the share of specialty product revenues in its
+portfolio.
+INDIAN BRANDED GENERIC BUSINESS
+times
+1.9
+1.7
+17
+Inventory turnover
+times
+1.3
+1.7
+-21
+(on cost of goods sold)
+Interest coverage ratio
+times
+4.6
+4.2
+Debtors turnover
+10
+times
+0.8
+0.8
+10
+Debt/Equity ratio
+times
+0.3
+0.3
+Orthopaedic
+1
+1
+Cardiologists
+1
+1
+Current ratio
+Variance (%)
+161
+FY18
+1.4
+3.6
+(on cost of goods sold).
+Interest coverage ratio
+times
+10.0
+9.6
+Current ratio
+times
+1.8
+1.6
+Debt/Equity ratio
+times
+0.2
+0.2
+Operating profit margin
+%
+20.7
+19.9
+%
+Return on net worth
+FY19
+Unit
+Ratios
+Table 7 Standalone
+Neurologists
+16
+13
+53446
+8.0
+9.3
+%
+Net profit margin
+-4
+1
+1
+Psychiatrists
+Sun Pharma continues to be the undisputed industry leader
+in India, enjoying 8.2% share of the market. The Company
+is also the market leader in the chronic segment.
+73,483
+No.1
++15
+Market position with
+8.2% market share⁹
+FY14-19
+revenue CAGR
+(%)
+26
+Revenue in FY19
+(*Million)
+Revenue share
+(%)
+Sustaining and improving high service standards for
+customers.
+Ensuring a diversified offering to customers across
+multiple dosage forms.
+Emphasising on complex generics and high-entry barrier
+segments.
+Gastro
+རྩི་རྩི་སི་རྩི་སྐྱེ་རྩེ་༔་༔༔རྩེ་
+11
+12
+Antibiotic R
+•
+.
+•
+SUN
+PHARMA
+ANDA approvals by therapeutic area as of March 2019
+It specialises in technically complex products and offers
+a comprehensive therapy basket. It enjoys a strong brand
+positioning with 30 brands featuring in the country's top 300
+pharmaceutical brands list.
+63
+31
+19
+15
+36
+Oncology
+Metabolism &
+47
+1.1
+Industry-leading productivity
+FY19 highlights
+February
+February
+2018
+Specialist
+2019
+3 Opthalomology
+4 Others
+Table 9 Leadership in prescription rankings 10
+Nutrients
+Minerals/
+Vitamins/
+4
+Dermatology
+6
+Pain/Analgesics
+7
+8.2%
+Daibetology
+9
+•
+Rank across prescriptions from
+11 different classes of doctors10
+No.1
+Revenue from the Indian branded generic business
+declined by 8.5% to 73,483 Million.
+. The Company has decided to transition its India
+formulations distribution business from a third-party
+distributor to the Company's wholly-owned subsidiary
+with effect from April 1, 2019. As a part of this strategy
+shift, the Company undertook a one-time adjustment
+relating to sales return from the distributor and lower
+invoicing to this distributor, totalling ~10,850 Million.
+This has led to the year-on-year decline in sales.
+Excluding this one-time impact, the India formulations
+revenues would have grown by about ~5% year on year.
+Specialty in progress
+The Company has a 9,500+ strong field force
+that ensures it reach to 4 lakh+ doctors across
+India. The Company's well-trained team of sales
+representatives, powered by scientific knowledge, has
+a strong performance track record with the highest
+productivity in the industry.
+STATUTORY REPORTS > Management Discussion and Analysis
+Chart 7 Therapeutic revenue break-up⁹
+(%)
+18 Cardiology
+4 Respiratory
+17 Neuro-psychiatry 3 Gynaecology
+12 Gastroenterology 3 Urology
+Market share
+10 Anti-Infectives
+23
+•
+Going ahead, Sun Pharma will continue to ensure 24x7
+compliance to cGMP as an imperative for a global
+business. It will continue to enhance systems, processes
+•
+FY16
+FY17
+FY18
+FY19
+Table 10
+- Buy-back of equity shares by overseas subsidiaries
+- Capital reserve
+- Debenture redemption Reserve
+FY15
+Capital redemption Reserve
+1,624.0
+984.9
+7,977.4
+4,791.6
+7,977.4
+3.4
+5.6
+4,791.6
+21,464.7
+Transfer to various Reserves:
+FY14
+The Company has an expert team of regulatory affairs
+specialists, who are well-versed with the globally-relevant
+regulatory policies and procedures. They are experienced
+in timely filing of dossiers and concurrently managing the
+regulatory queries and timelines of regulatory authorities.
+Sun Pharma meticulously follows global manufacturing
+standards and many of its manufacturing units are certified
+by regulatory authorities like the USFDA, the European
+Medicines Evaluation Agency (EMEA), the UK Medicines
+and Healthcare Products Regulatory Agency (MHRA),
+Australia's Therapeutic Goods Administration (TGA), South
+Africa's Medicines Control Council (MCC) and Germany's
+Federal Institute for Drugs and Medical Devices (BfArM).
+The Company also enjoys certifications by the Brazilian
+Health Regulatory Agency (ANVISA), the World Health
+Organization (WHO), South Korea's Ministry of Food and
+Drug Safety, and Japan's Pharmaceuticals and Medical
+Devices Agency. It emphasises on 24x7 compliance to
+Current Good Manufacturing Practice (cGMP) regulations,
+which is vital for a global business.
+It has manufacturing units located in India, the US, Canada,
+Japan, Hungary, Israel, Russia, Egypt, Bangladesh, Nigeria,
+South Africa, Malaysia and Australia. These facilities
+are responsible for seamless production of oncology,
+hormones, peptides, controlled substances and steroidal
+drugs. They also manufacture generics, branded generics,
+specialty products, OTC products, ARVs and APIs, along
+with intermediates in the full range of dosage forms: tablets,
+capsules, injectables, ointments, creams and liquids.
+Developing specialty products to enhance the specialty
+portfolio.
+Chart 8
+(%)
+Consistent investments in R&D
+R&D investments (* Billion)
+R&D investments (% of sales)
+6.5
+7.2
+8.3
+7.6
+8.6
+6.9
+10.4
+23.0
+23.1
+22.5
+19.6
+19.8
+Global manufacturing competence
+Sun Pharma enjoys world-class production facilities spanning
+the five continents of Asia, Europe, Africa, North America and
+Australia. It owns 44 state-of-the-art manufacturing units
+that produce formulations and APIs. The Company enjoys
+vertically integrated operations that equip it to maintain a
+high-quality and low-cost value chain for timely market entry
+across geographies.
+26,804.4
+3,490.8
+8,273.3
+Dividend Distribution Tax
+16,799.9
+566.9
+1,837.4
+Total other Comprehensive Income
+20,957.0
+26,654.2
+Profit for the year attributable to owners of the Company
+4,468.0
+5,424.4
+Non-controlling interests
+25,425.0
+32,078.6
+Profit for the year before non-controlling interests
+(254.4)
+(14.6)
+Share of (loss) of associates / joint ventures [Net]
+25,679.4
+32,093.2
+Profit after Tax but before Share in profit/(loss) of associates
+/ joint ventures
+5,232.5
+Developing complex/differentiated generic products for
+global markets.
+Total Comprehensive Income for the year attributable to:
+3,623.3
+Dividend on Equity Shares
+Less: Appropriations
+Amount available for appropriation
+Additions:
+4,945.7
+309,250.9
+319,777.0
+124,860.0
+120,370.0
+Opening balance in Retained Earnings
+6,824.4
+- Non-Controlling Interest
+25,711.8
+42,054.1
+3,623.3
+Global Manufacturing Capability
+10,003.4
+- Owners of the Company
+30,657.5
+48,878.5
+10,003.4
+Going forward, the Company's R&D efforts
+will be focused at:
+Sun Pharma is focusing on the development of non-infringing
+formulations and expansion of the specialty/complex
+products portfolio. Its R&D spend is sustained by strong
+cashflows and large scale of the Company.
+The Company has the capability to develop and
+commercialise a wide product range with successful offerings
+across different dosage forms such as gels, injectables,
+sprays, ointments, liquids and oral products, among
+others. Sun Pharma also manufactures liposomal products,
+auto-injectors, lyophilized injections, nasal sprays, and
+controlled release dosage forms.
+Revenue from rest of the world increased by 16% to
+*34,554 Million.
+The growth was driven in part by contribution from the
+Pola Pharma acquisition in Japan, increase in sales in
+some of the western European markets and a favourable
+exchange rate.
+Road ahead
+With demographic changes across these markets, especially
+in Western Europe and Japan, enhanced drug demand for
+geriatric care and chronic diseases will drive pharmaceutical
+consumption. Additionally, the adoption of newer specialty
+products as well as government policies to promote low-cost
+generics will propel growth in these markets.
+Sun Pharma will focus on:
+• Ramping up its presence in Japan.
+• Commercialising its specialty products, especially llumya,
+in key markets either on its own or through partnerships.
+GLOBAL CONSUMER HEALTHCARE BUSINESS
+Key brands
+(No.)
+International presence
+(No. of markets)
+20
+20+
+Ranked amongst top
+10 players
+(No. of markets)
+4
+Revenue share
+(%)
+Revenue in FY19
+(Million)
+FY14-19
+revenue CAGR
+(%)
+•
+17,302 17
+•
+PHARMA
+REST OF THE WORLD: WESTERN EUROPE, CANADA,
+JAPAN, AUSTRALIA, NEW ZEALAND AND OTHER
+MARKETS
+Revenue share
+Revenue in FY19
+(Million)
+(%)
+12
+34,554
+FY14-19
+revenue CAGR
+(%)
+32
+Sun Pharma is among the leading Indian companies that
+has a presence across major markets of Western Europe,
+Canada, Australia, New Zealand and Japan, among others.
+Across these geographies, the Company offers a wide range
+of products, including injectable and hospital products, as
+well as products for retail market. It also has a portfolio of
+long-listed products in the Japanese market.
+The Company primarily focuses on the development and
+commercialisation of complex generics and differentiated
+products for these markets. It has adopted a distribution-led
+business model to enhance its reach across these markets
+and caters to them through local manufacturing in Canada,
+Japan, Israel and Hungary, along with support from
+its India units.
+Annual Report 2018-19
+24
+Sun Pharmaceutical Industries Ltd.
+Expanding presence in Japan
+Sun Pharma had acquired 14 established prescription
+brands from Novartis in March 2016. During FY19,
+it acquired Pola Pharma in Japan, to strengthen its
+presence in the Japanese dermatology segment.
+Sustain leadership in existing markets by offering
+innovative products and packaging.
+Evaluate new emerging markets for entry.
+ACTIVE PHARMACEUTICAL INGREDIENTS (API)
+BUSINESS
+SUN
+FY19 highlights
+25,679.4
+6
+(Nos.)
+Continue to invest in the accelerating OTC business
+across key markets through brand building.
+• Focus on distribution expansion through brand
+extensions.
+Expand presence across OTC sub-categories in various
+markets.
+•
+Development and sustenance of enduring supply
+relationships with customers.
+Research and development
+R&D spend as
+% of FY19 sales
+(%)
+Cumulative R&D
+spend till date
+(in Billion)
+Team of scientists
+worldwide
+(Nos.)
+6.9
+150+
+~2,000
+Sun Pharma has consistently invested in R&D for sustainable
+value creation. It services both regulated and emerging
+pharmaceutical markets with a diverse product range
+of branded and generics products. The Company's R&D
+capabilities enable it to develop technology-intensive
+products and deliver them at affordable prices across
+international markets.
+Sun Pharma's R&D centres are equipped with cutting-edge
+technologies, where its scientists develop generics,
+Specialty in progress
+STATUTORY REPORTS > Management Discussion and Analysis
+25
+difficult-to-make technology-intensive products, APIs
+and novel drug delivery systems (NDDS). Additionally,
+the Company is focusing on the development of new
+chemical entities (NCEs) for global markets and has made
+significant investments in this domain. It also has a dedicated
+intellectual property rights (IPR) team, with internal and
+external lawyers, that supports its R&D efforts.
+•
+DMF/CEP filings*
+Capitalising on these enablers, Sun Pharma will:
+Road ahead
+413
+*as on March 31, 2019
+DMF/CEP approvals*
+(Nos.)
+305
+Manufacturing units
+(Nos.)
+14
+Sun Pharma started producing APIs in 1995 to strengthen
+backward integration to drive cost competitiveness and
+supply reliability.
+The API business is of strategic importance for Sun Pharma,
+as a significant portion of the API production acts as inputs
+for its formulations business. Besides captive consumption,
+the Company also supplies APIs to external customers across
+many international markets.
+FY19 highlights
+.
+Revenue from Active Pharmaceutical Ingredients (API)
+business increased by 24% to 17,303 Million.
+• Key growth drivers include new contracts, better
+realisations and a favourable foreign exchange rate.
+Road ahead
+Key focus areas for the future will be:
+•
+Timely development and commercialisation of strategic
+APIs for captive consumption.
+Expansion in the scale and scope of API operations.
+Sun Pharma ranks among India's top 10 consumer healthcare
+companies. Globally, it operates in 20+ countries, of which
+Romania, Russia, South Africa, Nigeria, Myanmar, Ukraine,
+Poland, Thailand, Belarus, Kazakhstan, Morocco and the UAE
+are the focus markets. The Company is also counted among
+the top 10 consumer healthcare companies in Romania,
+Nigeria and Myanmar.
+India's consumer healthcare market will be driven by the
+emerging middle class and rising healthcare consumption.
+Emerging markets are expected to sustain growth steered by
+enhanced healthcare awareness.
+Strengthen business profitability by launching complex
+products and reducing presence in low profitable,
+non-core product segments.
+32,093.2
+8,166.0
+-Maduranthakam
+-Dadra
+--Goa
+Quality is sacrosanct at all Sun Pharma R&D centres,
+manufacturing units and testing and distribution facilities.
+The Company is committed to implementing a robust
+quality management system and sustains a culture of
+operational excellence and meeting and exceeding
+stakeholder expectations.
+Quality adherence
+The Company undertakes significant measures to help its
+people develop various skills through different training
+programmes. Sun Pharma promotes a culture of inclusive
+growth in the organisation to enrich knowledge and make its
+people future ready.
+Sun Pharma has a global strength of 32,000+ permanent
+team members across 50 different nationalities. It considers
+its people vital to its success and thus, endeavours to provide
+them with a congenial work culture that promotes work-life
+balance, provides growth opportunities and rewards and
+recognises talent.
+Ankleshwar-
+Panoli-
+Silvassa-
+Sun Pharma believes in the motto of 'putting patients first'
+and its global Quality Management Team ensures every
+product complies with internationally accepted good
+practices and standards of quality, purity, efficacy and safety.
+The Company has put stringent checks in place to conform
+to global quality standards and ensures compliance with the
+requirements of various regulators. It has cGMP certifications
+from various global regulatory authorities like USFDA, EMA,
+WHO and TGA, among others.
+Dahej-
+API and Formulation plant
+API plant
+Formulation plant
+Latrobe
+(Australia)
+Port Fairy
+(Australia)
+(2 units)
+Dewas
+-Ahmednagar
+Sikkim
+- Malanpur
+Building an empowered team
+Sun Pharma has well-trained personnel for quality control at
+each site, who, along with a regulatory affairs department,
+ensure strict adherence to quality systems and procedures.
+The teams are guided by a Corporate Quality Unit, which
+oversees the translation of the latest GMP updates to
+guidelines, standard operating procedures (SOPs) and
+protocols. The Company's manufacturing plants are audited
+by an autonomous Corporate Compliance Department to set
+up 24x7 compliance and conformance.
+Specialty in progress
+STATUTORY REPORTS > Management Discussion and Analysis
+Internal control
+Ability to supply high-quality products at
+affordable prices.
+Ability to drive growth and profitability
+through a pragmatic mix of organic and
+inorganic initiatives.
+• Strong R&D skillsets to develop
+technologically complex products in the
+generic and specialty space.
+pharmaceutical company in Japan.
+Among the largest Indian
+pharmaceutical company in
+emerging markets.
+• Among the largest Indian
+by market share.
+• Largest company in India
+8th largest generics company in the US.
+•
+specialty generic company.
+Global presence - 4th largest global
+Strengths
+Table 11 SWOT analysis
+During the year, the USFDA granted an EIR to the
+and human capabilities to ensure compliance with global
+regulatory standards.
+27
+--Karkhadi
+-Guwahati
+-- Gazipur (Bangladesh)
+-- Kuala Lumpur (Malaysia)
+(2 units)
+Saitama (Japan)
+Global manufacturing footprint
+Sun Pharmaceutical Industries Ltd.
+26
+Annual Report 2018-19
+• Standalone units for peptides, anti-cancer,
+steroids and sex hormones.
+• Controlled substances manufactured in Australia.
+Israel, USA and Hungary (1 each)
+Australia (2)
+India (9)
+API manufacturing
+14
+Topicals: Creams and ointments.
+• Injectables/Sterile: Vials, ampoules, pre-filled
+syringes, gels, lyophilized units, dry powder, eye
+drops and aerosols.
+• Orals: Tablets/Capsules, semisolids, liquids
+and suppository.
+Canada, Hungary, Israel, Bangladesh, South Africa,
+Malaysia, Romania, Egypt, Nigeria and Russia (1 each)
+Capability
+Japan (2)
+USA (4)
+India (14)
+Finished dosage manufacturing
+Billerica MA (USA) -
+•
+Wilmington MA (USA) -
+Ontario (Canada) -
+Tennessee (USA)---
+PHARMA
+SUN
+---Paonta
+---Baddi
+Cluj (Romania)
+Penza (Russia)
+Tiszavasvari (Hungary)
+T
++
++
+Halol-
+Baska.
+Mohali --
+Toansa-
+Jammu
+Be-Tabs (South Africa)
+Lagos (Nigeria)--
+Giza (Egypt).
+Haifa (Israel)
+---- Cranbury (USA)
+1.
+New Jersey (USA).
+Opportunities
+Company's Halol facility, thus lifting the warning letter
+issued to the facility in 2015. Post the receipt of the EIR, the
+Company has started receiving new approvals from USFDA
+for the US market.
+Global efforts to reduce healthcare
+costs augur well for companies
+like Sun Pharma.
+Year ended
+March 31, 2019
+290,659.1
+Year ended
+March 31, 2018*
+90,062.5
+103,032.1
+- Deferred Tax Charge / (Credit)
+- Current Tax
+Tax expense:
+Profit before tax but after exceptional item
+Exceptional Item
+Profit before exceptional item and tax
+Revenue from operations
+Year ended
+March 31, 2019
+Consolidated
+Standalone
+(in Million)
+Financial Results
+Your Directors take pleasure in presenting the Twenty-Seventh Annual Report and Company's Audited Financial Statements
+for the financial year ended March 31, 2019.
+PHARMA
+SUN
+Board's Report
+Year ended
+March 31, 2018#
+Sun Pharmaceutical Industries Ltd.
+19,338.3
+50,245.8
+2,544.5
+Profit after tax
+- Deferred tax charge / (Credit) - exceptional
+(62.1)
+(2,030.8)
+(274.1)
+6,628.0
+8,039.6
+20.2
+15.5
+(987.0)
+34,789.8
+38,102.0
+2,802.5
+7,194.5
+9,505.0
+12,143.8
+9,505.0
+12,143.8
+264,894.6
+44,294.8
+12,307.5
+3,056.4
+28
+10. SMSRC data - March 2019
+upgradation of facilities, resulting in higher
+regulatory agencies requires constant
+manufacturing standards by global
+Continuous upgradation of cGMP
+approvals by the USFDA.
+and faster pace of generic drug
+Challenging US generic pricing environment
+driven by customer consolidation
+Threats and weaknesses
+•
+•
+The Company's operating management closely monitors
+the internal control environment and ensures that the
+recommendations of GIA are effectively implemented.
+The Audit Committee of the Board monitors performance
+GIA's functioning is governed by the Audit Charter,
+duly approved by the Audit Committee of the Board,
+which stipulates matters contributing to the proper and
+effective conduct of the audit. The audit processes are
+fully automated on a 'SunScience' tool which integrates
+audit, Internal Financial Controls (IFC) and Enterprise Risk
+Management (ERM) modules.
+An independent and empowered GIA at the corporate level
+carries out risk-focused audits across all businesses (both in
+India and overseas), to ensure that business process controls
+are adequate and are functioning effectively. These audits
+include reviewing finance, operations, safeguarding of assets
+and compliance related controls. Areas requiring specialised
+knowledge are reviewed in partnership with external subject
+matter experts.
+Global Internal Audit (GIA)
+The Company believes that internal control is a necessary
+prerequisite of governance and that freedom should be
+exercised within a framework of checks and balances.
+Sun Pharma has a well-established internal control
+framework, which is designed to continuously assess
+the adequacy, effectiveness and efficiency of financial
+and operational controls. The management is committed
+to ensure an effective internal control environment,
+commensurate with the size and complexity of the business,
+which provides an assurance on compliance with internal
+policies, applicable laws, regulations and protection of
+resources and assets.
+Growing penetration of generics
+in Japan and opening of the China
+market, present a good long-term
+opportunity for Indian companies
+including Sun Pharma.
+Contribution of specialty products is
+expected to increase in developed
+markets over the medium to long term.
+Sun Pharma forayed into this segment
+some years back; and is in the process
+of gradually ramping up this business as
+an additional growth engine.
+Favourable macroeconomic variable
+for India and emerging markets are
+likely to ensure reasonable volume
+growth for pharmaceutical products
+in these markets.
+Specialty in progress
+compliance costs for the industry.
+Annual Report 2018-19
+Government-mandated price controls on
+pharmaceutical products.
+of GIA, periodically reviews key findings and provides
+strategic guidance.
+AIOCD AWACS MAT - March 2019
+9.
+Nicholas Hall 2018
+8.
+MarketWatch
+7.
+6. India Brand Equity Foundation
+World Health Organisation
+5.
+The Lancet (Global Health Metrics, Volume 392, Issue 10159,
+P2052-2090, November 10, 2018)
+4.
+2017 United Nations' World Population Prospects
+3.
+2019 Global health care outlook (Deloitte)
+2.
+1. IQVIA Institute
+Bibliography
+Statements in this 'Management Discussion and Analysis' describing
+the Company's objectives, projections, estimates, expectations, plans
+or predictions or industry conditions or events are 'forward-looking
+statements' within the meaning of applicable securities laws and
+regulations. Actual results, performance or achievements could differ
+materially from those expressed or implied. Important factors that could
+make a difference to the Company's operations include global and Indian
+demand supply conditions, finished goods prices, feedstock availability
+and prices, competitors' pricing in the Company's principal markets,
+changes in Government regulations, tax regimes, economic conditions
+within India and the countries within which the Company conducts
+businesses and other factors, such as litigation and labour unrest or other
+difficulties. The Company assumes no responsibility to publicly update,
+amend, modify or revise any forward-looking statements, based on any
+subsequent development, new information or future events or otherwise
+except as required by applicable law. Unless the context otherwise
+requires, all references in this document to 'we', 'us' or 'our' refers to Sun
+Pharmaceutical Industries Limited and consolidated subsidiaries.
+Disclaimer
+• The specialty initiative entails high upfront
+investments for long-term benefits, thus
+impacting the short-term profitability.
+Significant volatility in the forex market,
+especially for emerging market currencies,
+may adversely impact growth reported for a
+particular period.
+Total number of sites
+Locations
+30
+products across therapeutic segments to exploit growth
+opportunities.
+Nephrologists
+1
+1
+Diabetologists
+1
+1
+Ophthalmologists
+1
+1
+Dermatologists
+1
+1
+Urologists
+1
+1
+Oncologists
+1
+1
+Gastroenterologists
+1
+• Explore organic and inorganic options to widen and
+deepen footprint in key markets.
+The dividend payout is in accordance with the Company's
+Dividend Distribution Policy. The Dividend Distribution
+Policy of the Company is provided as 'Annexure - A' to this
+Report. The policy is also available on the website of the
+Company and can be accessed through the web link: http://
+www.sunpharma.com/policies.
+319,777.0
+2.5
+2,168.1
+120,370.0
+123,846.1
+(833.4)
+(1,250.0)
+Your Directors have recommended a dividend of $2.75
+(Rupees two and paise seventy five only) per equity share
+of *1/- each [previous year *2.00/- per equity share of
+*1/- each] for the year ended March 31, 2019, subject to
+the approval of the equity shareholders at the ensuing 27th
+Annual General Meeting of the Company.
+Dividend
+*Refer Note 56(11) of Standalone Financial Statements
+#Refer Note 66 of Consolidated Financial Statements
+Closing balance in Retained Earnings
+- General reserve
+- Legal reserve
+- Adjustment on account of Ind AS 115
+1
+1
+2
+2,013.1
+6,493.0
+203.9
+43.0
+333,301.9
+1
+(Nos.)
+~2,300 ~100
+FY14-19
+revenue CAGR
+(%)
+039
+Local manufacturing
+presence
+(Countries)
+7
+Sales representatives
+(Nos.)
+The focus markets for this segment include Brazil, Mexico,
+Russia, Romania, South Africa and complementary and
+affiliated markets.
+The Company enjoys local manufacturing facilities, enabling
+reduction in logistics cost, across 7 countries.
+FY19 highlights
+Revenue from emerging markets increased by 11% to
+*53,625 Million.
+The favourable macroeconomic parameters of emerging
+markets offer encouraging long-term potential, which is
+expected to be partly offset by the various government
+efforts to make pharmaceutical products more
+affordable for all.
+Going forward, the Company will:
+Consulting physicians
+Focus on developing and commercialising more
+The Company offers an extensive array of branded products
+and leverages its strong marketing infrastructure through its
+~2,300-member strong sales force. This enables enduring
+relationships with doctors and medical practitioners.
+Market presence
+• Key markets, which contributed to the growth were
+Romania, South Africa, Brazil, Malaysia and Bangladesh,
+coupled with a favourable foreign exchange rate.
+Road ahead
+(Million)
+53,625
+1
+Road ahead
+1
+India's pharmaceutical market growth is expected to be
+driven by increasing per capita income, rising healthcare
+awareness, higher incidence of chronic ailments and gradually
+widening insurance coverage. Despite these tailwinds, the
+pharmaceutical companies face key challenges, which include
+government-mandated price controls, regulatory changes and
+intense competitiveness.
+Sun Pharma's key priorities comprise:
+•
+•
+2
+Product basket enhanced developed through own
+development and in-licensing.
+Revenue in FY19
+Consistent innovation as a definite roadmap to ensure
+high brand equity with doctors.
+19
+Chest physicians
+Revenue share
+EMERGING MARKETS
+(%)
+Focus on improving productivity to maintain industry
+leadership.
+USA
+100.00 2(87)(ii)
+Ukraine" LLC
+40. "Ranbaxy Pharmaceuticals
+41. Ranbaxy Pharmacie Generiques
+42. Ranbaxy Signature LLC
+Ukraine
+Not Applicable
+100.00 2(87)(ii)
+Not Applicable
+Subsidiary
+100.00 2(87)(ii)
+Subsidiary
+Subsidiary
+France
+38. Ranbaxy Nigeria Limited
+South Africa
+Not Applicable
+Not Applicable
+Subsidiary
+100.00 2(87)(ii)
+37. Ranbaxy Italia S.P.A.
+Italy
+Not Applicable
+Not Applicable
+100.00 2(87)(ii)
+Nigeria
+Not Applicable
+Subsidiary
+86.16 2(87)(ii)
+39. Ranbaxy Pharmaceuticals (Pty) Ltd.
+Subsidiary
+Subsidiary
+Pursuant to Regulation 17(1A) of SEBI (Listing Obligations
+and Disclosure Requirements) Regulations, 2015 ("Listing
+Regulations") the consent of the members by way of Special
+Resolution, was obtained at the 26th Annual General
+Meeting of the Company for continuation as Director
+beyond the age of seventy five years, of Mr. Israel Makov,
+Non-Executive Director and the Chairman of the Company,
+as he had attained an age of 79 years.
+2(87)(ii)
+Annual Report 2018-19
+30
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Appropriate resolutions for the re-appointment of the
+Directors are being placed for your approval at the ensuing
+27th Annual General Meeting. Your Directors recommend
+the same for approval by the members at the ensuing 27th
+Annual General Meeting of the Company.
+Mr. Sudhir V. Valia has stepped down from the position
+of Whole-time Director of the Company w.e.f. May 29,
+2019. However, he shall continue as a Non-Executive and
+Non-Independent Director of the Company.
+Declaration by Independent Directors
+In the opinion of the Board, the Independent Directors of the
+Company fulfil the conditions specified in the Act and Listing
+Regulations and are independent of the management.
+Remuneration Policy for Directors, Key Managerial
+Personnel and Other Employees and Criteria for
+Appointment of Directors
+For the purpose of selection of any Director, the Nomination
+and Remuneration Committee identifies persons of integrity
+who possess relevant expertise, experience and leadership
+qualities required for the position. The Committee also
+ensures that the incumbent fulfils such criteria with regard
+to qualifications, positive attributes, independence, age
+and other criteria as laid down under the Act, Listing
+Regulations or other applicable laws. The Board has, on
+the recommendation of the Nomination and Remuneration
+Committee framed a policy on remuneration of Directors,
+Key Managerial Personnel and other Employees.
+The salient features of the Remuneration Policy of the
+Company are as under:
+(A) Guiding Principles for remuneration: The Company
+shall remunerate all its personnel reasonably and
+sufficiently as per industry benchmarks and standards.
+The remuneration shall be commensurate to retain
+and motivate the human resources of the Company.
+The compensation package will, inter alia, take into
+account the experience of the personnel, the knowledge
+& skill required including complexity of his job, work
+duration and risks associated with the work, and
+attitude of the employee like positive outlook, team
+work, loyalty etc.
+Ireland
+The Company has received declarations from all the
+Independent Directors of the Company confirming that they
+meet with the criteria of independence as prescribed under
+Section 149(6) of the Act and under Listing Regulations.
+67.50
+Mr. S. Mohanchand Dadha, Mr. Keki Mistry and
+Mr. Ashwin Dani, Independent Directors having
+completed second term of 2 (two) years of their respective
+appointments on the conclusion of the 26th Annual General
+Meeting of the Company, all the three aforementioned
+Independent Directors retired and ceased to be Directors
+of the Company w.e.f. the conclusion of the 26th Annual
+General Meeting of the Company held on September 26,
+2018. The Board of Directors places on record their
+appreciation for contribution made by Mr. S. Mohanchand
+Dadha, Mr. Keki Mistry and Mr. Ashwin Dani during their
+tenure as Independent Directors of the Company.
+Directors and Key Managerial Personnel
+Specialty in progress
+STATUTORY REPORTS > Board's Report
+29
+Changes in Capital Structure
+During the year under review, the Company has allotted
+11790 equity shares of *1/- each under Sun Employee Stock
+Option Scheme - 2015 thereby the paid up share capital of
+the Company increased to 2,399,334,970/- (Rupees Two
+Billion Three Hundred Ninety Nine Million Three Hundred
+Thirty Four Thousand Nine Hundred Seventy only) as on
+March 31, 2019.
+Scheme of Arrangements
+Mr. Sailesh T. Desai and Mr. Kalyanasundaram Subramanian,
+Whole-time Directors of the Company retire by rotation at
+the ensuing 27th Annual General Meeting of the Company
+and being eligible offer themselves for reappointment.
+During the year, Mr. Gautam Doshi was appointed as an
+Additional Independent Director of the Company with
+effect from May 25, 2018. Mr. Vivek Chaand Sehgal and
+Mr. Gautam Doshi have been appointed as Independent
+Directors of the Company for a term of 5 (five) years each
+effective from November 14, 2017 and May 25, 2018 upto
+November 13, 2022 and May 24, 2023 respectively by
+the members at the 26th Annual General Meeting of the
+Company held on September 26, 2018.
+1. During the year, the Hon'ble National Company Law
+Tribunal of Gujarat at Ahmedabad had vide its Order
+dated October 31, 2018 sanctioned the Scheme of
+Arrangement among the Company and Sun Pharma
+Global FZE ("Transferor Company"), a wholly owned
+subsidiary of the Company and their respective
+members and creditors ("Scheme") whereby the
+Specified Undertaking (as defined in the Scheme)
+of Transferor Company stands demerged into the
+Company w.e.f. December 01, 2018 with appointed
+date being April 01, 2017. No consideration was paid
+pursuant to the Scheme.
+Extract of Annual Return
+The extract of Annual Return as required under sub-section
+(3) of Section 92 of the Companies Act, 2013 ('the Act') in
+form MGT-9 is provided as 'Annexure - B' to this Report
+and is also made available on the website of the Company
+at https://www.sunpharma.com/investors/annualreports.
+Subsidiaries/ Joint Ventures/Associate Companies
+The statement containing the salient features of the Financial
+Statements of the Company's subsidiaries/joint ventures/
+associate companies is given in Form AOC - 1, provided in
+Notes to the Consolidated Financial Statements, forming part
+of the Annual Report.
+The highlights of performance of subsidiaries, joint ventures
+and associate companies and their contribution to the overall
+performance of the Company during the financial year is
+given under 'Annexure A' to the Consolidated Financial
+Statements forming part of the Annual Report.
+Details pertaining to companies that became subsidiaries/
+joint ventures/associates and those that ceased to be the
+subsidiaries/joint ventures/associates of the Company
+during the year are provided in Note no. 39 of the Notes to
+the Consolidated Financial Statements, forming part of the
+Annual Report.
+2. During the year, the Board of Directors at its meeting
+held on May 25, 2018 had approved a Composite
+Scheme of Arrangement among the Company and Sun
+Pharma (Netherlands) B.V. (Transferee Company-1)
+and Sun Pharmaceutical Holdings USA Inc.
+(Transferee Company-2), wholly owned subsidiaries
+of the Company and their respective members and
+creditors ("Composite Scheme"), for demerger of
+Specified Investment Undertaking -1 (as defined in
+the Composite Scheme) of the Company into Sun
+Pharma (Netherlands) B.V. and Specified Investment
+Undertaking -2 (as defined in the Composite Scheme) of
+the Company into Sun Pharmaceutical Holdings USA Inc.
+The Hon'ble National Company Law Tribunal of Gujarat,
+at Ahmedabad ("NCLT") has vide its Order dated April 11,
+2019 dispensed with convening of meeting of secured
+creditors of the Company and ordered to convene the
+meeting of equity shareholders and unsecured creditors
+of the Company on June 04, 2019 to approve the
+Composite Scheme with appointed date as April 01,
+2017 or such other date as may be agreed between
+the Transferee Company-1, Transferee Company-2 and
+the Company and approved by the NCLT. Pursuant to
+said Composite Scheme, no consideration shall be paid.
+This demerger shall enable the Company to address
+the risks and policies, ability to strategise the remaining
+business for long term growth, consolidation and creation
+of shareholder value, etc.
+36. Ranbaxy Ireland Limited
+South Africa
+Subsidiary
+26.
+PI Real Estate Ventures, LLC
+USA
+Not Applicable
+Subsidiary
+100.00 2(87)(ii)
+100.00 2(87)(ii)
+27.
+Japan
+Not Applicable
+Subsidiary
+100.00 2(87)(ii)
+28. Ranbaxy South Africa (Pty) Ltd.
+29. Ranbaxy (Malaysia) SDN. BHD.
+(B) Components of Remuneration: The following will be the
+various remuneration components which may be paid to
+the personnel of the Company based on the designation
+and class of the personnel.
+Pola Pharma Inc.
+Not Applicable
+Subsidiary
+USA
+USA
+Not Applicable
+Subsidiary
+76.54
+2(87)(ii)
+24.
+Not Applicable
+OOO "Sun Pharmaceutical
+Not Applicable
+Subsidiary
+100.00 2(87)(ii)
+Industries" Limited
+25.
+Pharmalucence, Inc.
+Russia
+Subsidiary
+100.00 2(87)(ii)
+Malaysia
+33. Ranbaxy Farmaceutica Ltda.
+Brazil
+Not Applicable
+Subsidiary
+100.00 2(87)(ii)
+34. Ranbaxy Holdings (U.K.) Limited
+100.00 2(87)(ii)
+UK
+Subsidiary
+100.00 2(87)(ii)
+35. Ranbaxy Inc.
+One Commerce Drive LLC
+USA
+Not Applicable
+Not Applicable
+Subsidiary
+Not Applicable
+UK
+Not Applicable
+Subsidiary
+95.67
+2(87)(ii)
+30. Ranbaxy (Poland) SP. Z.O.O.
+Poland
+Not Applicable
+Subsidiary
+100.00 2(87)(ii)
+31. Ranbaxy (Thailand) Co., Ltd.
+Thailand
+Not Applicable
+Subsidiary
+100.00 2(87)(ii)
+32. Ranbaxy (U.K.) Limited
+100.00 2(87)(ii)
+a) Fixed compensation: The fixed salaries of the
+Company's personnel shall be competitive and
+based on the individual personnel's responsibilities
+and performance.
+Your Company has complied with provisions relating to the
+constitution of Internal Complaints Committee under the
+Sexual Harassment of Women at Workplace (Prevention,
+Prohibition and Redressal) Act, 2013
+c) Share based payments: The Board may, on
+the recommendation of the Nomination and
+Remuneration Committee, issue to certain class
+of personnel a share and share price related
+incentive program.
+a) in the preparation of the annual accounts for the financial
+year ended March 31, 2019, the applicable accounting
+standards have been followed and there are no material
+departures from the same;
+b) the Directors have selected such accounting policies
+and applied them consistently and made judgments and
+estimates that are reasonable and prudent so as to give a
+true and fair view of the state of affairs of the Company
+as at March 31, 2019 and of the profit of the Company
+for the year ended on that date;
+c) the Directors have taken proper and sufficient care
+for the maintenance of adequate accounting records
+in accordance with the provisions of the Act for
+safeguarding the assets of the Company and for
+preventing and detecting fraud and other irregularities;
+d) the Directors have prepared the annual accounts on a
+going concern basis;
+e) the Directors have laid down internal financial controls
+to be followed by the Company and that such internal
+financial controls are adequate and were operating
+effectively; and
+f) the Directors have devised proper systems to ensure
+compliance with the provisions of all applicable
+laws and that such systems were adequate and
+operating effectively.
+Pursuant to the requirements under Section 134(5) read
+with Section 134(3)(c) of the Act, with respect to Directors'
+Responsibility Statement, it is hereby confirmed that:
+Consolidated Accounts
+Credit Rating
+ICRA Ltd. has reaffirmed the highest credit rating of '[ICRA]
+A1+'/'[ICRA] AAA(Stable)' for the bank facilities, long term/
+short term borrowings and commercial paper programs
+of the Company.
+Further, CRISIL Ltd. has also reaffirmed the highest credit
+rating of 'CRISIL A1+ and CRISIL AAA/Stable' for short term
+& long term bank facilities and commercial paper programs
+of the Company.
+Business Responsibility Reporting
+The Business Responsibility Report of the Company for the
+year ended March 31, 2019, forms part of the Annual Report
+and is also made available on the website of the Company at
+http://www.sunpharma.com/pdflist/all-documents.
+Acknowledgements
+The consolidated financial statements for the year ended
+March 31, 2019 have been prepared in accordance with
+Indian Accounting Standards (Ind AS) notified under the
+Companies (Indian Accounting Standards) Rules, 2015.
+Your Directors wish to thank all stakeholders, employees and
+business partners, Company's bankers, medical professionals
+and business associates for their continued support and
+valuable cooperation.
+Directors' Responsibility Statement
+Whistle Blower Policy / Vigil Mechanism
+The Management Discussion and Analysis as prescribed
+under Part B of Schedule V read with Regulation 34(3) of
+the Listing Regulations is provided in a separate section and
+forms part of this Report.
+Corporate Governance Report
+Report on Corporate Governance and Certificate of the
+Auditors of the Company regarding compliance of the
+conditions of Corporate Governance as stipulated in Part C
+of Schedule V of the Listing Regulations, are provided in a
+separate section and forms part of this Report.
+Conservation of Energy, Technology Absorption and
+Foreign Exchange Earnings and Outgo
+The information on conservation of energy, technology
+absorption and foreign exchange earnings and outgo as
+stipulated under Section 134(3)(m) of the Act read with Rule
+8 of the Companies (Accounts) Rules, 2014, is provided as
+'Annexure G' to this Report.
+Employees' Stock Option Schemes
+To create enduring value for all stakeholders and ensure the
+highest level of honesty, integrity and ethical behaviour in all
+its operations, the Company has adopted a 'Global Whistle
+Blower Policy' for Sun Pharmaceutical Industries Limited
+and all its subsidiaries, in addition to the existing Global
+Code of Conduct that governs the actions of its employees.
+Further details on vigil mechanism of the Company are
+provided in the Corporate Governance Report, forming part
+of this Report.
+The Company presently has only one Employees' Stock
+Option Scheme, which is inherited from erstwhile Ranbaxy
+Laboratories Limited (“Ranbaxy”). The scheme is through
+Direct Route and has been named as Sun Pharma Employee
+Stock Option Scheme - 2015. The scheme was adopted by
+the Company with certain amendments consequent upon
+merger of erstwhile Ranbaxy into the Company. The Scheme
+is in compliance with Securities and Exchange Board of India
+(Share Based Employee Benefits) Regulations, 2014.
+Disclosure with respect to the Employees' Stock Option
+Scheme in compliance with Securities and Exchange Board of
+India (Share Based Employee Benefits) Regulations, 2014 is
+available on the Company's website and can be accessed at:
+http://www.sunpharma.com/pdflist/all-documents.
+There are no significant and material orders passed by the
+regulators or courts or tribunals which impact the going
+concern status and Company's operations in future.
+Annual Report 2018-19
+34
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Significant and Material Orders Passed by the
+Regulators or Courts or Tribunals
+Management Discussion and Analysis
+The Directors also wish to express their gratitude to
+investors for the faith that they continue to repose
+in the Company.
+Place: Mumbai
+Date: May 28, 2019
+3. Effective Date
+The Policy shall become effective from the date of its
+adoption by the Board i.e. November 10, 2016.
+4. Category of Dividends
+The Board of Directors shall have the power to recommend
+final dividend to the equity shareholders for their approval
+in the Annual General Meeting of the Company. Subject to
+compliance with the provisions of Companies Act, 2013
+including the Rules made thereunder and other relevant
+regulations, if any, the Board of Directors shall also have
+the absolute power to declare interim dividend during
+any financial year out of the surplus in the profit and loss
+account and out of profits of the financial year in which such
+interim dividend is sought to be declared, as and when they
+consider it fit in compliance with Companies Act, 2013 and
+other relevant regulations. Interim Dividend may be paid in
+order to supplement the annual dividend or in exceptional
+circumstances.
+5. Payment of Dividend from Reserves
+Dividend shall normally be declared from the profit earned
+by the Company during the relevant financial year after
+adjusting for accumulated losses & unabsorbed depreciation,
+if any and out of the carried forward profits not transferred
+to any reserves. However, under special circumstances,
+Dividend may be declared out of the accumulated profits
+earned by it in previous years and transferred by it to the free
+reserves, subject to compliance with the requirements of the
+relevant provisions of the Companies Act, 2013 including the
+Rules made thereunder.
+The Company, being one of the top five hundred listed
+Companies in India on the basis of market capitalisation,
+requires to comply with the requirements of Regulation 43A.
+6. Circumstances to be Considered While
+Determining Dividend Pay-Out
+• Accumulated Losses, if any
+The profits earned by the Company during any financial
+year shall be first utilised to set off the accumulated
+losses/ unabsorbed depreciation, if any of the Company
+from the previous financial years.
+Annual Report 2018-19
+36
+Sun Pharmaceutical Industries Ltd.
+SUN
+The Board shall consider the circumstances provided below
+before determination of any dividend payout after analysing
+the prospective opportunities and threats, viability of the
+options of dividend payout or retention etc. The decision
+of dividend payout shall, majorly be based on the aforesaid
+factors considering the balanced interest of the stakeholders
+and the business requirements of the Company.
+For and on behalf of the Board of Directors
+The Securities and Exchange Board of India ("SEBI") vide
+its Notification dated July 08, 2016 has amended the
+SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 (the "Listing Regulations") by inserting
+Regulation 43A in order to make it mandatory to have a
+Dividend Distribution Policy in place by the top five hundred
+listed companies based on their market capitalisation
+calculated as on the 31st day of March of every year.
+Determination and declaring dividend on preference
+shares, if any.
+Israel Makov
+Chairman
+Specialty in progress
+STATUTORY REPORTS > Board's Report
+DIVIDEND DISTRIBUTION POLICY
+35
+2. Relevant Regulations
+Annexure - A
+The Board of Directors (the "Board") of the Sun
+Pharmaceutical Industries Limited (the "Company")
+recognises the need to lay down a broad framework for
+considering decisions by the Board of the Company, with
+regard to distribution of dividend (including any interim
+dividend) to its equity shareholders and/ or retaining or
+plough back of its profits.
+The Policy sets out the circumstances and different factors
+for consideration by the Board at the time of taking such
+decisions of distribution or of retention of profits, in the
+interest of providing transparency to the equity shareholders.
+The Policy is not an 'alternative' but a 'Guide' to the decision
+of the Board for recommending dividend, which may
+be made after taking into consideration all the relevant
+circumstances enumerated hereunder and such other factors
+as may be decided as relevant by the Board.
+While recommendation of Dividend shall be guided by this
+Policy, in extraordinary circumstances, the Board shall have
+complete liberty to recommend dividend in deviation to this
+policy, if so deemed necessary in the best interests of the
+Company and its stakeholders.
+The Policy reflects the intent of the Company to reward
+its equity shareholders by sharing a portion of its profits
+after adjusting for accumulated losses, if any, and also
+retaining sufficient funds for future growth of the
+Company. The Company intends to pay, subject to the
+circumstances and factors enlisted hereon, dividend, which
+shall be consistent with the performance of the Company
+over the years.
+Subject to the considerations as provided in the Policy, the
+Board shall determine the dividend payout in a particular
+year after taking into consideration the operating and
+financial performance of the Company, the advice of
+executive management including the CFO, and other
+relevant factors.
+The Policy shall not apply to:
+1. Objectives and Scope:
+The Company has not accepted any deposit from the Public
+during the year under review, under the provisions of the Act
+and the rules framed thereunder.
+Public Deposits
+required to spend on CSR activities during the year, however,
+the Company has voluntarily spent on CSR activities.
+The annual report on CSR activities containing details of
+voluntary expenditure incurred by the Company and brief
+details on the CSR activities are provided in 'Annexure - F'
+to this Report.
+Evaluation of performance of the Board, its
+Committees and Individual Directors
+During the year, the evaluation of the annual performance of
+individual Directors including the Chairman of the Company
+and Independent Directors, Board and Committees of the
+Board was carried out under the provisions of the Act,
+relevant Rules, and the Corporate Governance requirements
+as prescribed under Regulation 17 of Listing Regulations
+and based on the circular issued by SEBI dated January 5,
+2017 with respect to Guidance Note on Board Evaluation.
+The Nomination and Remuneration Committee had approved
+the criteria for the performance evaluation of the Board,
+its Committees and individual Directors as per the SEBI
+Guidance Note on Board Evaluation.
+The Chairman of the Company interacted with each Director
+individually, for evaluation of performance of the individual
+Directors. The evaluation for the performance of the Board
+as a whole and of the Committees were conducted by way of
+questionnaires.
+In a separate meeting of Independent Directors, performance
+of Non Independent Directors and performance of the
+Board as a whole was evaluated. Further, they also evaluated
+the performance of the Chairman of the Company, taking
+into account the views of the Executive Directors and
+Non-executive Directors.
+The performance of the Board was evaluated by the Board
+after seeking inputs from all the Directors on the basis of
+various criteria such as structure and diversity of the Board,
+competency of Directors, experience of Director, strategy
+and performance evaluation, secretarial support, evaluation
+of risk, evaluation of performance of the management and
+feedback, independence of the management from the Board
+etc. The performance of the Committees was evaluated
+by the Board after seeking inputs from the Committee
+members on the basis of criteria such as mandate and
+composition, effectiveness of the committee, structure of the
+committee and meetings, independence of the committee
+from the Board and contribution to decisions of the Board.
+The Nomination and Remuneration Committee reviewed
+the performance of the individual Directors on the basis
+of the criteria such as qualification, experience, knowledge
+and competency, fulfilment of functions, availability and
+attendance, initiative, integrity, contribution and commitment
+etc., and the Independent Directors were additionally
+evaluated on the basis of independence, independent views
+and judgement etc. Further the evaluation of Chairman of
+the Board, in addition to the above criteria for individual
+Directors, also included evaluation based on effectiveness of
+leadership and ability to steer the meetings, impartiality, etc.
+The Board of Directors of the Company met 5 (Five) times
+during the year under review on May 25, 2018; August 14,
+2018; September 26, 2018; November 13, 2018 and
+February 12, 2019. The particulars of attendance of the
+Directors at the said meetings are provided in detail in
+the Corporate Governance Report, which forms a part of
+this Report. The intervening gap between the meetings
+was within the period prescribed under the Act and
+Listing Regulations.
+The Chairman and other members of the Board discussed
+upon the performance evaluation of every Director of the
+Company and concluded that they were satisfied with the
+overall performance of the Directors individually and that the
+Directors generally met their expectations of performance.
+The summary of the feedback from the members were
+thereafter discussed in detail by the members. The respective
+Director, who was being evaluated, did not participate in the
+discussion on his/her performance evaluation and had exited
+the meeting for the said discussion. During the discussion
+in respect of performance of Mr. Dilip Shanghvi and
+Mr. Sudhir Valia, both Mr. Dilip Shanghvi and Mr. Sudhir Valia
+had exited the meeting.
+Human Resources
+We have more than 32,000 talented employee base spread
+across multiple geographies in various sales offices, R&D
+centers, 40 + manufacturing locations, Regional offices and
+Corporate office. We believe our employees are pivotal to
+all the initiatives that drive us to realise our future plans.
+Human Resource agenda encourages high performance
+culture with focus on Employee safety & welfare, Employee
+development & Productivity. Your Directors would also like
+to take this opportunity to express their appreciation for
+the dedication and commitment of the employees of the
+Company and look forward to their continued contribution.
+Information as per Section 197 (12) of the Act read with Rule
+5(1) of the Companies (Appointment and Remuneration of
+Managerial Personnel) Rules, 2014 is provided in 'Annexure
+- C' to this Report. Further, the information pertaining
+to Rule 5(2) & 5(3) of the Companies (Appointment and
+Remuneration of Managerial Personnel) Rules, 2014,
+pertaining to the names and other particulars of employees
+is available for inspection at the Registered office of the
+Company during business hours and pursuant to the
+second proviso to Section 136(1) of the Act, the Report
+and the accounts are being sent to the members excluding
+this. Any shareholder interested in obtaining a copy of the
+same may write to the Company Secretary/Compliance
+Officer at Corporate office or Registered office address
+of the Company.
+Disclosure under the Sexual Harassment of Women
+at Workplace (Prevention, Prohibition and Redressal)
+Act, 2013
+Your Company strongly believes in providing a safe and
+harassment free workplace for each and every individual
+Annual Report 2018-19
+32
+The Chairman additionally interacted with each Director
+individually, for evaluation of performance of all Individual
+Directors and Mr. Dilip Shanghvi, along with other Directors
+had evaluated the performance of Mr. Israel Makov as the
+Chairman and as an Individual Director. They were satisfied
+with the overall performance of the Directors individually
+and that the Directors generally met their expectations
+of performance.
+Sun Pharmaceutical Industries Ltd.
+Number of meetings of the Board
+STATUTORY REPORTS > Board's Report
+d) Non-monetary benefits: Senior management
+personnel of the Company may, on a case to
+case basis, be awarded customary non-monetary
+benefits such as discounted salary advance / credit
+facility, rent free accommodation, Company cars
+with or without chauffer, share and share price
+related incentive, reimbursement of electricity and
+telephone bills etc.
+e) Gratuity/group insurance: Personnel may also be
+awarded to group insurance and other key man
+insurance protection. Further as required by the law
+necessary gratuity shall be paid to the personnel.
+f) Commission: The directors may be paid commission if
+approved by the shareholders. The shareholders may
+authorise the Board to declare commission to be paid
+to any director of the Board.
+C) Entitlement: The authority to determine the entitlement
+to various components as aforesaid for each class and
+designation of personnel shall be as follows
+Designation / Class
+Director
+Key Managerial Personnel and
+Senior Management
+31
+Other employees
+of the Nomination and
+Remuneration Committee
+within the limits approved by
+the shareholders
+Board of Directors on
+recommendation of
+the Nomination and
+Remuneration Committee
+Human Resources Head
+Note: For the purpose of this Policy, the term 'Senior Management'
+shall have the same meaning as defined under the SEBI (Listing
+Obligation and Disclosure Requirements) Regulations, 2015
+The complete Policy as approved by the Board is available on
+the website of the Company and can be accessed through
+the web link: http://www.sunpharma.com/policies.
+Familiarisation programme for the Independent
+Directors
+In compliance with the requirements of Regulation 25(7)
+of the Listing Regulations, the Company has put in place a
+Familiarisation Programme for the Independent Directors
+to familiarise them with the Company, their roles, rights,
+responsibilities in the Company, nature of the industry
+in which the Company operates, business model etc.
+The details of the Familiarisation Programme conducted are
+available on the website of the Company www.sunpharma.
+com and can be accessed through the web link: http://
+www.sunpharma.com/policies.
+Specialty in progress
+To be determined by
+Board of Directors on
+the recommendation
+SUN
+PHARMA
+working for the Company through various interventions and
+practices. It is the continuous endeavour of the Management
+of the Company to create and provide an environment
+to all its employees that is free from discrimination and
+harassment including sexual harassment. The Company has
+adopted a policy on prevention, prohibition and redressal of
+sexual harassment at workplace in line with the provisions of
+the Sexual Harassment of Women at Workplace (Prevention,
+Prohibition and Redressal) Act, 2013 and the Rules made
+thereunder. The Company has arranged various interactive
+awareness workshops in this regard for the employees at the
+manufacturing sites, R & D set ups & corporate office during
+the year under review. The Company has submitted the
+Annual Returns to the local authorities, as required under the
+above mentioned Act.
+Risk Management
+The Board of Directors has constituted a Risk Management
+Committee which is entrusted with the responsibility of
+overseeing various strategic, operational and financial
+risks that the organisation faces, along with the adequacy
+of mitigation plans to address such risks. The Corporate
+Governance Report, which forms part of this report, contains
+the details of Risk Management Committee of the Company.
+There is an overarching Risk Management Policy in place has
+been reviewed and approved by the Board.
+The Company has developed & implemented an integrated
+Enterprise Risk Management Framework through which it
+identifies monitors, mitigates & reports key risks that impacts
+its ability to meet the strategic objectives. The Company's
+ERM framework is based on the recommendations by the
+Committee of Sponsoring Organisations (COSO) to further
+the organisation's endeavor to strengthen ERM framework
+and processes using best practices. The ERM team engages
+with all Function heads to identify internal and external
+events that may have an adverse impact on the achievement
+of Company's objectives and periodically monitors changes
+in both internal and external environment leading to
+emergence of a new threat/risk. These risks are captured in
+the form of a risk register with all the relevant information
+such as risk description, root cause and any existing
+mitigation plans. The risk register is refreshed annually.
+Risks are categorised into Strategic, Financial, Operational,
+Compliance & Reputational. ERM risk assessments covering
+Company's various businesses and functions are a key input
+Specialty in progress
+STATUTORY REPORTS > Board's Report
+33
+The details pertaining to composition of Audit Committee are
+included in the Corporate Governance Report, which forms
+part of this Report.
+for the annual internal audit program. During FY 2018-19,
+the ERM team focused on reviewing effectiveness of actions
+taken to mitigate certain business, cyber security and other
+operational risks.
+The Company believes that internal control is a necessary
+prerequisite of Governance and that freedom should be
+exercised within a framework of checks and balances.
+The Company has a well-established internal control
+framework, which is designed to continuously assess
+the adequacy, effectiveness and efficiency of financial
+and operational controls. The management is committed
+to ensure an effective internal control environment,
+commensurate with the size and complexity of the business,
+which provides an assurance on compliance with internal
+policies, applicable laws, regulations and protection of
+resources and assets.
+Global Internal Audit
+An independent and empowered Global Internal Audit
+Function (GIA) at the corporate level carries out risk-focused
+audits across all businesses (both in India and overseas),
+to ensure that business process controls are adequate and
+are functioning effectively. These audits include reviewing
+finance, operations, safeguarding of assets and compliance
+related controls. Areas requiring specialised knowledge are
+reviewed in partnership with external subject matter experts.
+GIA's functioning is governed by the Audit Charter, duly
+approved by the Audit Committee of the Board, which
+stipulates matters contributing to the proper and effective
+conduct of audit. The audit processes are fully automated
+on a 'SunScience' tool which integrates audit, Internal
+Financial Controls (IFC) and Enterprise Risk Management
+(ERM) modules.
+The Company's operating management closely monitors
+the internal control environment and ensures that the
+recommendations of GIA are effectively implemented.
+The Audit Committee of the Board monitors performance
+of GIA, periodically reviews key findings and provides
+strategic guidance.
+Corporate Social Responsibility
+In compliance with the requirements of Section 135
+of the Act read with the Companies (Corporate Social
+Responsibility) Rules, 2014, the Board of Directors have
+constituted a Corporate Social Responsibility (CSR)
+Committee. The details of membership of the Committee and
+the meetings held are detailed in the Corporate Governance
+Report, forming part of this Report. The contents of the CSR
+Policy of the Company as approved by the Board on the
+recommendation of the CSR Committee are available on the
+website of the Company and can be accessed through the
+web link: http://www.sunpharma.com/policies. The average
+net profit of the Company in the three immediately preceding
+financial years is negative, therefore the Company was not
+Internal Financial Controls
+Audit Committee Composition
+As required under Section 134(3)(h) of the Act, details of
+transactions entered with related parties under the Act
+exceeding ten percent of the annual consolidated turnover
+as per the last audited financial statements are given in Form
+AOC-2 provided as 'Annexure - E' to this Report.
+The policy on Related Party Transactions as approved by the
+Board is available on the website of the Company and can be
+accessed through the web link http://www.sunpharma.com/
+policies. All contracts/arrangements/transactions entered by
+the Company during the year under review with the related
+parties were in the ordinary course of business and on an
+arm's length basis.
+During the financial year ended March 31, 2019, three
+complaints pertaining to sexual harassment were received
+and the same were resolved by the Company. There are no
+complaints pending as at the end of the financial year.
+Auditors
+Statutory Auditors
+SRBC & Co LLP, Chartered Accountants, (Firm's Regn.
+No. 324982E/E300003), were appointed as the Statutory
+Auditors of the Company for a period of 5 (five) years at
+the 25th Annual General Meeting of the Company to hold
+office till the conclusion of the 30th Annual General Meeting
+of the Company.
+The Auditor's Report for the financial year ended March 31,
+2019, has been issued with an unmodified opinion, by the
+Statutory Auditors.
+Secretarial Auditor
+The Board had appointed KJB & Co. LLP, Practicing Company
+Secretaries, Mumbai to undertake the Secretarial Audit
+of the Company for the financial year ended March 31,
+2019. The Secretarial Audit Report in the Form No. MR - 3
+for the year is provided as 'Annexure - D' to this Report.
+The Secretarial Audit Report for the year does not contain
+any qualification, reservation or adverse remark.
+Cost Auditor
+The Board has appointed Messrs B M Sharma & Associates,
+Cost Accountants, Pune (Firm's Registration No. 100537) as
+Cost Auditor of the Company for conducting Cost Audit in
+respect of Bulk Drugs & Formulations of your Company for
+the financial year 2019-20.
+The Company is required to maintain Cost Records as
+specified by the Central Government under Section 148(1) of
+the Act and accordingly, such accounts and records are made
+and maintained by the Company.
+Secretarial Standards
+The Company has complied with the applicable Secretarial
+Standards as amended from time to time.
+Loans, Guarantees & Investments
+The particulars of loans, guarantees and investments have
+been disclosed in the Financial Statements.
+Related Party Transactions
+b) Variable compensation: The personnel of the
+Company may be paid remuneration by way of
+variable salaries based on their performance
+evaluation. Such variable salaries should be based
+on the performance of the individual against his
+short and long term performance objectives and the
+performance of the Company.
+U24100MH2012FTC225970
+23.
+Subsidiary
+Sun Pharmaceutical Industries Ltd.
+38
+Annual Report 2018-19
+Annexure - B
+Vikhroli West, Mumbai 400 083
+Tel No: +91 22 49186270
+C 101, 247 Park, L.B.S. Marg,
+Link Intime India Private Limited
+Yes
+SPARC, Tandalja, Vadodara 390012, Gujarat
+Tel No: +91 0265 6615500
+Sun Pharmaceutical Industries Limited
+Company Limited by Shares
+L24230GJ1993PLC019050
+March 01, 1993
+Name, Address and Contact details of Registrar and
+Transfer Agent, if any
+II. Principal Business Activities of the Company
+vii)
+vi)
+Address of the Registered Office and Contact details
+v)
+Category/Sub-Category of the Company
+iv)
+Name of the Company
+iii)
+Registration Date
+ii)
+CIN
+i)
+I. Registration and Other Details:
+Whether listed company
+[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the
+Companies (Management and Administration) Rules, 2014]
+All the business activities contributing 10% or more of the total turnover of the Company:
+Name and Description
+of main products/services
+2.
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+USA
+2 Independence Way LLC
+1.
+Section
+Applicable
+% of
+shares held
+CIN/GLN
+Sr. No.
+Holding/Subsidiary /
+Associate
+the Company
+No.
+Name of the Company
+Address of
+Sr.
+PHARMA
+SUN
+% to Total turnover
+of the company
+100
+210
+NIC Code of the
+Product/Service
+1
+Pharmaceuticals
+III. Particulars of Holding, Subsidiary and Associate Companies as on March 31, 2019
+3 Skyline LLC
+as on the financial year ended on March 31, 2019
+Form No. MGT-9
+The Company's growth oriented decision to conserve
+cash in the Company for future expansion plan impacts
+shareholders expectation for the long run which
+shall have to considered by the Board before taking
+dividend decision.
+Product/Project expansion plan
+•
+8. Factors that may affect Dividend Payout
+Internal Factors
+If during any financial year, the Board determines that
+the profits of the Company are inadequate on standalone
+basis and/or consolidated basis, the Board may decide
+not to declare dividends for that financial year.
+Post dividend Earning Per Share (EPS)
+The post dividend EPS can have strong impact on the
+funds of the Company, thus, impacting the overall
+operations on day-today basis and therefore, affects
+the profits and can impact the decision for dividend
+declaration during a particular year.
+• Adequacy of profits
+The Company should be able to repay its debt obligations
+without much difficulty over a reasonable period of time.
+The decision of dividend declaration shall be taken after
+considering the volume of such obligations and time
+period of repayment.
+• Obligations to creditors
+the viability of the options in terms of cost of raising
+necessary funds from outsiders such as bankers, lending
+institutions or by issuance of debt securities or plough
+back its own funds.
+The Board will analyse the requirement of necessary
+funds considering the long term or short term projects
+proposed to be undertaken by the Company and
+Cost of borrowings
+Since dividend is directly linked with the availability of
+earning over the long haul, the magnitude of earnings will
+significantly impact the dividend declaration decisions
+of the Company.
+General Working capital requirement
+Magnitude of earnings of the Company
+• Return on invested capital
+In addition to the circumstances covered under point 6
+above, the Board shall, inter alia, consider the following
+financial parameters, while taking decisions of a dividend
+payout during a particular year-
+7. The Financial Parameters that shall be considered
+while declaring/ recommending Dividend
+The Board, while considering the decision of dividend
+pay-out or retention of a certain amount or entire profits
+and/or out of the accumulated profits of the Company,
+shall, as far as possible, consider the expectations of
+the major stakeholders including the small shareholders
+of the Company who generally expect a regular
+dividend payout.
+Expectations of major stakeholders, including small
+shareholders
+The Board shall analyse the ongoing and prospective
+projects and strategic decisions including need
+for replacement of capital assets, expansion and
+modernisation etc., before recommending Dividend
+Pay-out for any financial year with an object to build a
+healthy reserve of retained earnings to augment long
+term strength and to build a pool of internally generated
+funds to provide long-term resources as well as
+resource-raising potential for the Company.
+Covenants with lenders/ Debenture Trustees, if any
+The decision of dividend pay-out shall also be subject to
+compliance with covenants contained in any agreement
+entered into by the Company with the Lenders/
+Debenture Trustee's, from time to time, if any.
+Prudential & Strategic requirements
+Transfer to Reserves and other Statutory Requirements
+The Board shall examine the implication of relevant
+statutory requirements including payment of Dividend
+Distribution Tax, transfer of a certain portion of profits
+to Reserves etc., if applicable, on the financials of the
+Company at the time of taking decision with regard to
+dividend declaration or retention of profit.
+The Board will consider the impact of proposed dividend
+on the operating cash flow of the Company and shall
+satisfy itself of its adequacy before taking a decision on
+whether to declare dividend or retain its profits.
+Operating cash flow of the Company
+PHARMA
+100.00 2(87)(ii)
+The efficiency with which the Company uses its capital
+will impact the decision of dividend declaration.
+EXTRACT OF ANNUAL RETURN
+In addition to the above, the general working capital
+requirements within the Company will also impact the
+decision of dividend declaration.
+The trend of the performance/ reputation of the
+Company that has been during the past years determine
+the expectation of the shareholders.
+The Board may review and amend or modify this policy in
+whole or in part, at any time.
+11. Review and Amendment
+Such other manner as the Board may deem fit from
+time to time
+• Towards diversification of business
+To fund new acquisitions & investments
+Towards investment in long term/ short term strategic
+joint ventures &/or partnerships and/or subsidiary
+companies
+Towards replacement/ up-gradation/modernisation
+of equipment's & plants
+To fund the research expenditures of ongoing
+research projects specifically those in the advanced
+development stages
+To fund the project expansion plans of the Company
+To meet the working capital/ business needs of the
+Company
+•
+10. Manner of Utilisation of Retained Earnings
+The Board may retain its earnings in order to make
+better utilisation of the available funds and increase the
+Past performance/ reputation of the Company
+The Company is committed to deliver sustainable value to
+all its stakeholders. The Company strives to distribute an
+optimal and appropriate level of the profits earned by it in its
+business and investing activity, with the equity shareholders,
+in the form of dividend. As explained in the earlier part of
+this Policy, determining the dividend pay-out is dependent
+upon several factors, both internal to a business and external
+to it. Taking into consideration the aforementioned factors,
+the Board shall have absolute discretion to determine &
+recommend appropriate Dividend pay-out for the relevant
+financial year.
+Dividend distribution tax or any tax deduction at source
+as required by applicable tax regulations in India, as
+may be applicable at the time of declaration of dividend
+shall have bearing on the quantum of Dividend declared
+by the Company.
+Tax implications
+The Board will keep in mind any restrictions on payment
+of dividends by virtue of any regulation or loan covenant,
+as may be applicable to the Company at the time of
+declaration of dividend.
+Statutory Restrictions
+37
+STATUTORY REPORTS > Board's Report
+Specialty in progress
+When the markets are favourable, dividend pay-out can
+be liberal. However, in case of unfavorable Capital market
+conditions, Board may resort to a conservative dividend
+pay-out in order to conserve cash outflows.
+Capital Market
+Considering the state of economy in the Country,
+the policy decisions that may be formulated by the
+Government and other similar conditions prevailing in
+the international market which may have a bearing on
+or affect the business of the Company, during uncertain
+or recessionary economic and business conditions,
+the Board may consider retaining a larger part of the
+profits to have sufficient reserves to absorb unforeseen
+circumstances.
+Macroeconomic conditions
+External Factors
+9. Range of Dividend Pay-Out
+USA
+value of the stakeholders in the long run. The retained
+earnings of the Company may, inter alia, be utilised for the
+following purposes:
+Subsidiary
+Spain
+17. Laboratorios Ranbaxy S.L.U.
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Japan
+16. Kakayu Co., Ltd.
+96.96 2(87)(ii)
+Subsidiary
+Not Applicable
+Russia
+100.00 2(87)(ii)
+Not Applicable
+Subsidiary
+USA
+100.00 2(87)(ii)
+Subsidiary
+U90009GJ2010PLC062892
+India
+15. JSC Biosintez
+14. Insite Vision Incorporated
+Centre Limited
+13. Green Eco Development
+and Control of India
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Subsidiary
+100.00
+2(87)(ii)
+Not Applicable
+Not Applicable
+USA
+22. Ohm Laboratories Inc.
+Et Hospitalier
+2(87)(ii)
+100.00
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+France
+Office Pharmaceutique Industriel
+21.
+Subsidiary
+U45200MH2010PTC201611
+India
+20. Neetnav Real Estate Private Limited
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+USA
+Mutual Pharmaceutical Company Inc.
+19.
+2(87)(ii)
+100.00
+Not Applicable
+USA
+18. Morley & Company, Inc.
+U85190MH2016NPL286097
+India
+Subsidiary
+12.
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Germany
+Basics GmbH
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Russia
+AO Ranbaxy
+99.99 2(87)(ii)
+Subsidiary
+7. Caraco Pharmaceuticals
+Hungary
+4.
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Israel
+Aditya Acquisition Company Ltd.
+3.
+3456N
+Foundation for Disease Elimination
+2(87)(ii)
+76.54
+Alkaloida Chemical Company Zrt.
+India
+Not Applicable
+100.00
+Subsidiary
+Subsidiary
+U51900MH2006PTC159266
+India
+Faststone Mercantile Company
+11.
+100.00 2(87)(ii)
+Subsidiary
+USA
+Dusa Pharmaceuticals, Inc.
+10.
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+USA
+2(87)(ii)
+Private Limited
+Not Applicable
+8. Chattem Chemicals Inc.
+Private Limited
+USA
+Not Applicable
+100.00 2(87)(ii)
+100.00 2(87)(ii)
+9.
+Dungan Mutual Associates, LLC
+Subsidiary
+17502708
+0.73
+0.09
+vii) Foreign Nationals
+21040
+0
+21040
+24636
+0.00
+0
+24636
+viii) Hindu Undivided Family
+0.00
+0
+4424397
+0.00
+3746747
+17502708
+v) Other Directors
+3783394
+4424397
+0.01
+0
+3783394
+0.16
+0
+0
+0.16
+0.00
+vi) Trusts
+15374984
+0
+15374984
+0.64
+3746747
+0.18
+0
+469252
+(B)=(B)(1)+(B)(2)
+C. SHARES HELD
+BY CUSTODIAN
+FOR GDRs & ADRs
+Employee Benefit Trust
+0
+0
+0.00
+0
+0.00
+0.00
+under SEBI (Share based
+0.12
+Regulations, 2014
+employee benefit)
+0.00
+ix) IEPF
+45.62
+12.76
+0
+Sub-total (B)(2):-
+302985219
+Total Public Shareholding
+1081356752
+469252
+10563226 313548445
+13111047 1094467799
+5263150
+0.02
+1218550
+13.07 296855505
+45.62 1085179321
+0
+5263150
+0.22
+0.03
+0
+1218550
+9248216 306103721
+9300268 1094479589
+0.05
+0.03
+-0.31
+2938110
+27306865
+2938110
+288000 28974116
+1.21
+0.07
+holding nominal share
+capital in excess of *1 Lakh
+c) Qualified
+0
+0
+0
+0.00
+0
+0
+0
+0.00
+0.00
+28686116
+Foreign Investors
+1.14
+27181865
+0.00
+GRAND TOTAL (A+B+C)
+0.00
+b) Individuals
+i) Individual Shareholders
+138287020
+9952424 148239444
+6.18
+139147990
+8528636 147676626
+6.15
+-0.02
+holding nominal share
+capital upto 1 Lakh
+ii) Individual Shareholders
+125000
+d) Others (specify)
+i) Non
+4545204
+iii) Foreign Companies
+671865
+0
+671865
+0.03
+276965
+0
+276965
+0.01
+-0.02
+iv) Clearing Member
+2695586
+0
+2695586
+0.11
+Indians (Non Repat)
+0.02
+0.13
+3161429
+331885
+4877089
+0.20
+5427442
+279740
+5707182
+0.24
+0
+0.03
+ii) Non Resident
+2565549
+0
+2565549
+0.11
+3161429
+0
+Resident Indians(Repat)
+2386200133
+10086458
+100.00 2390022702
+Various dates during the year*
+(4085319)
+(0.17)
+141217558
+5.89
+At the end of the year
+141217558
+5.89
+141217558
+5.89
+3.
+ICICI Prudential Value
+Discovery Fund and
+At the beginning of the year
+72006776
+3.00
+Increase Decrease
+in Share holding
+72006776
+6.06
+959772578
+145302877
+Increase Decrease
+October 23, 2018#
+959489975
+39.99
+959772578
+40.00
+in Share holding#
+(Pursuant to merger)
+At the end of the year
+959772578
+2.
+Life Insurance
+Corporation of India
+At the beginning of the year
+145302877
+40.00
+6.06
+40.00
+Private Limited
+3.00
+Increase Decrease
+1.67
+40153960
+1.67
+5.
+Raksha S. Valia
+At the beginning of the year
+33830352
+1.41
+33830352
+1.41
+At the end of the year
+33830352
+1.41
+33830352
+0
+40153960
+various Fund Accounts
+At the end of the year
+1.67
+Various dates during the year*
+0.42
+82093234
+3.42
+in Share holding
+At the end of the year
+82093234
+3.42
+82093234
+3.42
+4.
+Aditya Medisales Limited At the beginning of the year
+40153960
+1.67
+40153960
+1.41
+company
+0.01
+282603
+No. of
+shares
+No. of
+shares
+% of total
+Shares of the
+company
+% of shares
+Pledged/
+encumbered to
+total Shares
+% change in
+share-holding
+during the
+year
+1
+Dilip S. Shanghvi
+230285690
+9.60
+0
+230285690
+9.60
+0
+0.00
+% of shares
+Pledged/
+encumbered to
+total Shares
+(iii) Change in Promoters' Shareholding (please specify, if there is no change)
+company
+No. of
+shares
+9312268 2399334970
+100.00
+0.00
+*includes Promoter Group
+Annual Report 2018-19
+42
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+(ii) Shareholding of Promoters
+Shareholding at the beginning of the year
+Shareholding at the end of the year
+Shareholder's
+Sr. No.
+Name
+% of total
+Shares of the
+Shareholding at the beginning of
+the year
+Cumulative shareholding
+during the year
+Sr.
+For Each of the
+No.
+top 10 shareholders
+Shareholding at the beginning of
+9.60
+Cumulative shareholding
+during the year
+% of total
+Shares of the
+the year
+No. of
+shares
+1.
+Shanghvi Finance
+At the beginning of the year
+282603
+% of total
+Shares of the
+company
+0.01
+(iv) Shareholding Pattern of top ten shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
+230285690
+9.60
+230285690
+Sr. No.
+No. of
+shares
+% of total
+Shares of the
+company
+No. of
+shares
+% of total
+Shares of the
+company
+1.
+13123047 2399323180
+Dilip S. Shanghvi
+230285690
+9.60
+No Change during the year
+230285690
+230285690
+9.60
+9.60
+At the end of the year
+At the beginning of the year
+Increase / Decrease in Shareholding
+during the year
+46000
+Mexico
+3.73
+Canada
+Not Applicable
+Netherlands
+76.54 2(87)(ii)
+Subsidiary
+Not Applicable
+USA
+2(87)(ii)
+76.54
+Subsidiary
+Not Applicable
+Israel
+83. Taro Pharmaceutical Industries Ltd.
+84. Taro Pharmaceutical Laboratories Inc.
+Taro Pharmaceuticals Europe B.V.
+86. Taro Pharmaceuticals Inc.
+85.
+85
+2(87)(ii)
+76.54
+Not Applicable
+Subsidiary
+Subsidiary
+76.54
+2(87)(ii)
+Not Applicable
+Cayman
+Islands,
+the Company
+North America, Inc.
+87. Taro Pharmaceuticals
+CIN/GLN
+Holding/Subsidiary /
+Address of
+Subsidiary
+No.
+Sr.
+PHARMA
+SUN
+Sun Pharmaceutical Industries Ltd.
+40
+Annual Report 2018-19
+2(87)(ii)
+76.54
+Name of the Company
+Not Applicable
+Israel
+2(87)(ii)
+Not Applicable
+USA
+77. Sun Pharmaceuticals SA (Pty) Ltd.
+78. Sun Pharmaceuticals France
+79. Sun Pharmaceuticals Germany GmbH
+80. Sun Pharmaceuticals Korea Ltd.
+81. Sun Pharmaceuticals Morocco LLC
+82. Taro International Ltd.
+76. Sun Pharmaceuticals Holdings
+USA, Inc.
+Subsidiary
+Not Applicable
+Peru
+Subsidiary
+75. Sun Pharmaceutical Peru S.A.C.
+U36900GJ2017PLC095132
+India
+74. Sun Pharmaceutical Medicare Limited
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Peru
+73. Sun Pharmaceutical Industries S.A.C.
+Subsidiary
+Associate
+Subsidiary
+100.00
+99.33 2(87)(ii)
+100.00
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Morocco
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+South Korea
+2(87)(ii)
+2(87)(ii)
+Subsidiary
+Not Applicable
+Subsidiary
+Not Applicable
+France
+Germany
+Subsidiary
+Not Applicable
+South Africa
+100.00 2(87)(ii)
+100.00
+100.00 2(87)(ii)
+% of
+shares held
+Applicable
+Section
+Associate
+Not Applicable
+Germany
+97. Artes Biotechnology GmbH
+2(6)
+19.99
+Associate
+Not Applicable
+45.00
+USA
+96.
+57.50 2(87)(ii)
+Subsidiary
+Not Applicable
+Nigeria
+95. Zenotech Laboratories Nigeria Limited
+2(87)(ii)
+57.56
+ALPS LLC
+Subsidiary
+2(6)
+India
+USA
+101. HRE II LLC
+2(6)
+28.76
+Associate
+Not Applicable
+India
+100. Generic Solar Power LLP
+98. Composite Power Generation LLP
+2(6)
+Associate
+Not Applicable
+USA
+99. Dr. Py Institute LLC
+2(6)
+36.90
+Associate
+Not Applicable
+19.99
+Industries (Europe) B.V.
+L27100AP1989PLC010122
+94. Zenotech Laboratories Limited
+90.
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+USA
+The Taro Development Corporation
+89.
+Universal Enterprises Private Limited
+2(87)(ii)
+Subsidiary
+Not Applicable
+USA
+88. Taro Pharmaceuticals U.S.A., Inc.
+Indies
+British West
+2(87)(ii)
+76.54
+76.54
+India
+India
+Subsidiary
+38.21 2(87)(ii)
+57.56 2(87)(ii)
+Subsidiary
+Not Applicable
+USA
+93. Zenotech Inc
+Subsidiary
+Not Applicable
+Brazil
+Not Applicable
+Zenotech Farmaceutica Do Brasil Ltda
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+USA
+URL PharmPro, LLC
+91.
+100.00 2(87)(ii)
+92.
+Not Applicable
+100.00 2(87)(ii)
+Not Applicable
+Not Applicable
+Brazil
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Mexico
+2(87)(ii)
+70.00
+Subsidiary
+Not Applicable
+South Africa
+100.00 2(87)(ii)
+Subsidiary
+U51900MH2006PTC159237
+2(87)(ii)
+100.00
+Subsidiary
+Subsidiary
+100.00 2(87)(ii)
+Canada
+Not Applicable
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Netherlands
+100.00 2(87)(ii)
+Subsidiary
+U25200MH1997PLC240268
+India
+U73100MH2005PTC150606
+100.00 2(87)(ii)
+Not Applicable
+UAE
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+UAE
+100.00 2(87)(ii)
+Subsidiary
+Subsidiary
+India
+India
+2(87)(ii)
+96.81
+45. Terapia SA
+2(87)(ii)
+100.00
+Subsidiary
+Section
+shares held
+Associate
+CIN/GLN
+U51900MH2006PTC158889
+50. Sun Farmaceutica do Brasil Ltda.
+the Company
+India
+43.
+No.
+Name of the Company
+Applicable
+% of
+Holding/Subsidiary /
+Address of
+Sr.
+Realstone Multitrade Private Limited
+56.
+44. Rexcel Egypt LLC
+47. Softdeal Trading Company
+Private Limited
+Subsidiary
+Not Applicable
+Romania
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Egypt
+46. Skisen Labs Private Limited
+Sun Pharma ANZ Pty Ltd
+55. Sun Pharma (Netherlands) B.V.
+54. Sun Pharma Laboratories Limited
+53. Sun Laboratories FZE
+52. Sun Global Development FZE
+51. Sun Global Canada Pty. Ltd.
+49. SPIL De Mexico S.A. DE C.V.
+Proprietary Limited
+48. Sonke Pharmaceuticals
+[Formerly known as Ranbaxy
+(Netherlands) B.V.]
+57. Sun Pharma Canada Inc.
+Australia
+Not Applicable
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Switzerland
+Sun Pharma Switzerland Ltd.
+68.
+100.00 2(87)(ii)
+Subsidiary
+69.
+Not Applicable
+67. Sun Pharma Philippines, Inc.
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Japan
+66. Sun Pharma Japan Ltd.
+100.00 2(87)(ii)
+Subsidiary
+Philippines
+Not Applicable
+Sun Pharmaceutical Industries, Inc.
+70. Sun Pharmaceutical
+Not Applicable
+Netherlands
+72. Sun Pharmaceutical
+(Australia) Pty Limited
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Australia
+USA
+Sun Pharmaceutical Industries
+(Bangladesh) Limited
+2(87)(ii)
+72.50
+Subsidiary
+Not Applicable
+Bangladesh
+100.00 2(87)(ii)
+Subsidiary
+71.
+Subsidiary
+Mauritius
+100.00 2(87)(ii)
+India
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Venezuela
+75.00 2(87)(ii)
+Subsidiary
+U51909MH2019PLC322778
+Not Applicable
+58. Sun Pharma DE Mexico S.A. DE C.V.
+59. Sun Pharma DE Venezuela, C.A.
+60. Sun Pharma Distributors Limited
+61. Sun Pharma East Africa Limited
+(Formerly known as Ranbaxy
+Pharmaceuticals Canada Inc.)
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Canada
+100.00 2(87)(ii)
+Subsidiary
+6.
+65. Sun Pharma Holdings
+Subsidiary
+Kenya
+Subsidiary
+Not Applicable
+UAE
+64. Sun Pharma Healthcare FZE
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+UAE
+100.00 2(87)(ii)
+63. Sun Pharma Global FZE
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+Egypt
+62. Sun Pharma Egypt Limited LLC
+100.00 2(87)(ii)
+Subsidiary
+Not Applicable
+(Formerly known as Ranbaxy
+Egypt Ltd)
+-0.57
+Associate
+2(6)
+0
+0
+0
+c) Central Government/
+Institutions/Bank
+-0.06
+0.88
+21071172
+1.18
+9.31
+223335011
+9342
+2293
+223325669
+21068879
+0.93
+22415813
+3798
+8.13
+0.00
+2820
+0
+2820
+7.01
+168094940
+0
+168094940
+e) Insurance Companies
+0.00
+0.00
+0
+195010271
+0
+0.00
+0
+0
+0
+d) Venture Capital Funds
+State Government
+0.00
+0.00
+0
+2500782
+192509489
+22412015
+b) Financial
+54.38
+12000 1304855381
+1304843381
+0.00
+0.00
+0
+0
+0
+1304843381
+0.00
+0
+0
+0.00
+0.00
+0
+0
+0
+0.00
+0
+f) Fils
+12000 1304855381
+0.00
+a) Mutual Funds
+1. Institutions
+year
+% Change
+during the
+41
+% of Total
+Shares
+Total
+Physical
+54.38
+B. PUBLIC
+SHAREHOLDING
+% of Total
+Shares
+Total
+Physical
+Demat
+Category of shareholders
+No. of shares held at the beginning of the year
+No. of shares held at the end of the year
+STATUTORY REPORTS > Board's Report
+Demat
+3788557
+17943
+3806500
+3628111
+0.00
+0.00
+32717
+23789
+1380
+0
+52052
+1212911
+788323816
+32.55
+0.06
+0.15
+1546565
+780919354
+778371533
+Sub-total (B)(1):-
+8928
+3626731
+0.09
+0.00
+25422
+2236970
+23918
+1380
+0
+1546565
+2547821
+Alternate Investment Funds
+0.06
+0.05
+89567502
+151840
+89415662
+46000
+4.30
+0.00
+46000
+0
+46000
+103072980
+1212911
+153917
+ii) Overseas
+i) Indian
+a) Bodies Corporate
+2. Non-Institutions
+0.31
+32.86
+788375868
+-0.01
+102919063
+0
+2235590
+1504
+0.00
+0
+0
+0.00
+0
+0
+0
+g) Foreign Venture Capital
+0.00
+-0.13
+693050
+15248
+-0.08
+6.92
+166138398
+0
+166138398
+677802
+0.16
+0.03
+UTI
+h) Qualified
+0
+Foreign Bank
+Investor (Corporate)
+Foreign Portfolio
+-0.65
+15.52
+0.00 372261678
+372261678
+16.16
+0
+0 387782873
+(i) Any Other (specify)
+Foreign Investors
+0.00
+0.00
+0
+0
+0.00
+0
+387782873
+19.99
+0
+0.00
+2(6)
+18.33
+Associate
+Not Applicable
+Israel
+111. Tarsius Pharma Ltd.
+2(6)
+39.41
+Associate
+Not Applicable
+India
+110. Vintage Power Generation LLP
+2(6)
+40.55
+Associate
+Not Applicable
+India
+IV.
+Share Holding Pattern (Equity Share Capital Breakup as percentage of Total Equity as on March 31, 2019)
+(i) Category-wise Share Holding
+Category of shareholders
+293200513
+year
+% Change
+during the
+% of Total
+Shares
+Total
+Physical
+Demat
+% of Total
+Shares
+109. Vento Power Generation LLP
+Total
+Demat
+No. of shares held at the end of the year
+No. of shares held at the beginning of the year
+State Government
+b) Central Government/
+a) Individual / HUF
+1) Indian
+A. PROMOTERS*
+Physical
+2(6)
+40.61
+Associate
+2(6)
+19.99
+Associate
+Not Applicable
+USA
+104. Intact Pharmaceuticals LLC
+2(6)
+19.99
+105. Intact Media LLC (Formerly
+Associate
+USA
+103. HRE LLC
+2(6)
+19.99
+Associate
+Not Applicable
+USA
+102. HRE III LLC
+Not Applicable
+0 293200513
+USA
+Associate
+Not Applicable
+India
+108. Trumpcard Advisors and Finvest LLP
+2(6)
+19.99
+Associate
+Not Applicable
+USA
+Not Applicable
+107. Medinstill LLC
+19.99
+Associate
+Not Applicable
+USA
+106. Medinstill Development LLC
+Intact Skin Care LLC)
+2(6)
+19.99
+2(6)
+0
+0
+0
+0
+0.00
+0
+0
+0.00
+0
+Oooo
+0
+0
+0
+OOOO
+0
+0
+Specialty in progress
+Total shareholding of
+Promoter (A)=(A)(1)+(A)(2)
+Sub-total (A)(2):-
+e) Any Other
+Institutions / Bank
+oooo
+d) Financial
+0.00
+0
+0.00
+0
+0.00
+0.00
+0
+0.00
+0.00
+0
+0
+0.00
+0
+Oooo
+0
+0
+0
+0
+oooo
+0.00
+0.00
+0
+c) Bodies Corporate
+b) Other
+42.11
+0.00
+0
+0
+0
+12000 1010378094
+1010366094
+d) Financial
+c) Bodies Corporate
+1010366094
+0.00
+0
+0
+0.00
+12.22
+293200513
+0
+293200513
+12.22
+0.00
+0.00
+Individuals
+12000 1010378094
+0.00
+a) Individuals (NRIs)
+2) Foreign
+Sub-total (A) (1):-
+0.00
+54.38
+0.00
+0.05
+0 1276774
+12000 1304855381
+42.11
+0.05
+1276774
+54.38 1304843381
+1304843381
+0
+1276774
+e) Any Other (Trusts)
+Institutions Bank
+0.00
+0.00
+0
+1276774
+12000 1304855381
+Government of Singapore
+STATUTORY REPORTS > Board's Report
+At the beginning of the year
+Various dates during the year*
+committee meetings
+Commission
+Others, please specify
+Total (1)
+1000000 600000 200000 1500000
+600000 1300000
+0
+board
+5200000
+Other Non-
+Executive Directors
+Fee for attending board /
+committee meetings
+Commission
+Others, please specify
+Total (2)
+900000
+2.
+5200000
+600000 1300000
+600000 200000 1500000
+Dadha*
+Chaand
+Sehgal
+Gautam
+Mr. Israel
+Makov
+Total
+Amount
+Doshi
+(1)
+(2)
+(3)
+(4)
+(5)
+(6)
+(7)
+(1) to (7)
+1.
+Independent
+1000000
+900000
+No.
+0
+0
+Increase / Decrease
+in Share holding
+Secretary)
+Officer)
+18668583
+(in Million)
+Total
+1.
+(Chief Financial
+Gross salary
+13.39
+32.02
+45.41
+(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
+0.32
+0.79
+1.11
+(a) Salary as per provisions contained in section 17(1) of the Income- tax Act, 1961
+(Company
+Mr. CS
+Muralidharan
+Ajmera
+0
+0
+0
+0
+1300000
+900000 900000
+900000 6100000
+600000 200000 1500000 600000
+Not applicable since no commission was paid during the year.
+Sitting Fee is $1,00,000 for each meeting of the Board/Committee attended by the Director.
+Total (B) = (1+2)
+Ceiling as per the Act:
+Total Managerial Remuneration (A+B):
+*For part of the year upto September 26, 2018
+C. Remuneration to Key Managerial Personnel other than MD / Manager/WTD
+(As per Form 16, on actual payment basis)
+Sr.
+Particulars of Remuneration
+No.
+Key Managerial Personnel
+Mr. Sunil
+1000000
+Mr.
+Mr. Vivek
+Name of Directors
+Ms. Rekha
+Sethi
+118.4
+64,342.4
+97.40
+64,558.2
+Notes:
+(1) Deposits are Security Deposits Received. The change during the year has been shown on net basis.
+(2) Interest accrued but not due on borrowings.
+Total (i+ii+iii)
+(3) Change in the OD & WCDL limit under Working Capital Facility forming part of Unsecured loans, have been shown on net basis.
+(4) Ind AS adjustment in the outstanding as on March 31, 2019 of External Commercial Paper & Commercial papers are shown as reduction in principal amount.
+(Amount in *)
+Mr. Dilip S.
+Shanghvi
+Mr. Sudhir V.
+Mr. Sailesh T.
+Total
+Valia
+Desai
+VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
+94.4
+84.2
+10.2
+Change: Addition/ (Reduction) in Interest accrued but not Due
+1.1
+44.2
+45.3
+Net Change
+1.1
+(4,429.5)
+(20.9)
+(4,449.3)
+Indebtedness at the end of the financial year
+i) Principal Amount
+108.2
+64,258.2
+97.4
+64,463.8
+ii) Interest due but not paid
+iii) Interest accrued but not due (2)
+1*
+1*
+11855400
+11855402
+5.
+Others, please specify
+Total (A)
+262801
+79201
+12226581
+12568583
+Ceiling as per the Act: ₹499.9 Million (10% of Net Profits of the Company calculated as per Section 198 of the Companies Act, 2013)
+*Remuneration of Mr. Dilip Shanghvi and Mr. Sudhir V. Valia is 1/- each for the financial year 2018-19 and the remaining amount of
+*262800 and *79200 respectively pertain to notional value of perquisite as per Income Tax Act.
+Specialty in progress
+STATUTORY REPORTS > Board's Report
+B. Remuneration to other directors for the year ended March 31, 2019:
+(The remuneration to Non-Executive Directors consist only of sitting fees)
+45
+(Amount in *)
+Sr.
+Mr. S Mohanchand
+Particulars of Remuneration
+Mr. Keki Mr. Ashwin
+Mistry*
+Dani*
+Commission - as % of profit
+(c) Profits in lieu of salary under section 17(3) Income tax Act, 1961
+4.
+3.
+79200
+371181
+713181
+Sr.
+Particulars of Remuneration
+No.
+1.
+Gross salary
+(a) Salary as per provisions contained in section 17(1) of the
+Income-tax Act, 1961
+(b) Value of perquisites u/s
+262800
+17(2) Income-tax Act, 1961
+(c) Profits in lieu of salary under section 17(3)
+Income tax Act, 1961
+2.
+Stock Option
+Sweat Equity
+2.
+Stock Option
+3.
+ii. The Securities Contracts (Regulation) Act, 1956 ('SCRA')
+and the rules made thereunder;
+iii. The Depositories Act, 1996 and the Regulations and
+Bye-laws framed thereunder;
+iv. Foreign Exchange Management Act, 1999 and the rules
+and regulations made thereunder to the extent of Foreign
+Direct Investment, Overseas Direct Investment and
+External Commercial Borrowings;
+v. The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India
+("SEBI") Act, 1992:
+a. The Securities and Exchange Board of India
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015;
+b. The Securities and Exchange Board of India (Substantial
+Acquisition of Shares and Takeovers) Regulations, 2011;
+c. The Securities and Exchange Board of India (Prohibition
+of Insider Trading) Regulations, 2015;
+i. The Companies Act, 2013 (the Act) and the rules
+made thereunder;
+d. The Securities and Exchange Board of India (Share Based
+Employee Benefits) Regulations, 2014;
+f. The Securities and Exchange Board of India (Issue of
+Capital and Disclosure Requirements) Regulations,
+2009 - Not applicable to the Company for the
+year under review;
+g. The Securities and Exchange Board of India (Delisting of
+Equity Shares) Regulations, 2009 - Not applicable to the
+Company for the year under review;
+h. The Securities and Exchange Board of India (Registrars to
+an Issue and Share Transfer Agents) Regulations, 1993,
+regarding the Companies Act and dealing with client -
+Not applicable to the Company;
+i. The Securities and Exchange Board of India (Issue and
+Listing of Debt Securities) Regulations, 2008 - Not
+applicable to the Company for the year under review;
+We have also examined compliance with the applicable
+clauses of Secretarial Standards with respect to meeting of
+Board of Directors (SS-1) and General Meetings (SS-2) issued
+by The Institute of Company Secretaries of India under the
+provisions of Companies Act, 2013;
+During the period under review, the Company has complied
+with the provisions of the Act, Rules, Regulations, Guidelines
+etc. mentioned above
+We further report that:
+1. The Board of Directors of the Company is duly
+constituted with proper balance of Executive Directors,
+Non-Executive Directors, Independent Directors and
+Woman Director. The changes in the composition of
+the Board of Directors that took place during the period
+under review were carried out in compliance with the
+provisions of the Act.
+e. The Securities and Exchange Board of India (Buyback
+of Securities) Regulations, 1998 - Not applicable to the
+Company for the year under review;
+We have examined the books, papers, minutes books,
+forms and returns filed and other records maintained by the
+Company for the financial year ended on 31st March 2019,
+according to the provisions of:
+Based on our verification of the Company's books, papers,
+minutes books, forms and returns filed and other records
+maintained by the Company and also the information
+provided by the Company, its officers, agents and authorised
+representatives during the conduct of secretarial audit,
+we hereby report that in our opinion, the Company has,
+during the audit period covering the financial year ended on
+31st March 2019, complied with the statutory provisions
+listed hereunder and also that the Company has proper
+Board-processes and compliance mechanism in place to
+the extent, in the manner and subject to the reporting
+made hereinafter:
+We have conducted the Secretarial Audit of the compliances
+of applicable statutory provisions and the adherence to
+good corporate governance practice by Sun Pharmaceutical
+Industries Limited ("the Company"). Secretarial Audit was
+conducted in a manner that provided us a reasonable
+basis for evaluating the corporate conducts / statutory
+compliances and expressing our opinion thereon.
+(v) It is hereby affirmed that the remuneration paid is as per
+the Remuneration Policy for Directors, Key Managerial
+Personnel and other Employees.
+(All the details of remuneration given above are as
+per Form 16 as per Income Tax Act, and the ratios are
+calculated on that basis)
+For and on behalf of the Board of Directors
+Place: Mumbai
+Date: May 28, 2019
+Israel Makov
+Chairman
+Specialty in progress
+STATUTORY REPORTS > Board's Report
+47
+Annexure - D
+To,
+The Members,
+FORM NO. MR-3
+SECRETARIAL AUDIT REPORT
+FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2019
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
+Sun Pharmaceutical Industries Limited,
+Vadodara, Gujarat.
+2. Adequate notice of at least seven days was given to all
+directors to schedule the Board Meetings and Meetings
+of Committees. Agenda and detailed notes on agenda
+were sent in advance in adequate time before the
+meetings and a system exists for Directors for seeking
+and obtaining further information and clarifications on
+the agenda items before the meeting and for meaningful
+participation at the meeting.
+Annual Report 2018-19
+48
+Sun Pharmaceutical Industries Ltd.
+ANNEXURE 1 TO SECRETARIAL AUDIT REPORT
+The Members,
+Sun Pharmaceutical Industries Limited,
+Vadodara, Gujarat.
+Our report of even date is to be read along with this letter.
+1. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
+correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts
+are reflected in secretarial records. We believe that the processes and practices we followed provide a reasonable basis
+for our opinion.
+2. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
+3. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations
+and happening of events etc.
+4. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or
+effectiveness with which the management has conducted the affairs of the Company.
+For KJB & CO LLP,
+Practicing Company Secretaries
+Alpeshkumar J. Panchal
+Partner
+Mem No. 49008
+C. P. No. 20120
+Date: May 28, 2019
+Place: Mumbai.
+Specialty in progress
+To,
+9.77% and the average increase/(decrease) in the
+managerial personnel remuneration was (66.44)%.
+This report is to be read with our letter of even date which is annexed as Annexure 1 and forms an integral part of this report
+C. P. No. 20120
+SUN
+PHARMA
+3. On verification of minutes, we have not found any
+dissent/disagreement on any of the agenda items
+discussed in the Board and Committee meetings from any
+of the Directors and all the decisions are carried through.
+Based on the information received and records
+maintained, we further report that there are adequate
+systems and processes in the Company commensurate
+with the size and operations of the Company to monitor
+and ensure compliance with applicable laws, rules,
+regulations and guidelines.
+We further report that, having regard to the compliance
+system prevailing in the Company and on examination
+of the relevant documents and records in pursuance
+thereof, on the basis of the representations made by the
+respective plant heads of R&D centers, the Company
+has identified and complied with the following laws
+applicable to the Company:
+Drugs and Cosmetics Act, 1940 and rules made
+thereunder;
+.
+Factories Act, 1948.
+We further report that during the year under review:
+•
+The Company had allotted 11,790 Equity Shares of
+*1/- each to eligible employees who have exercised
+their options under Sun Employees Stock Options
+Scheme 2015;
+-
+Undertaking of Sun Pharma Global FZE was demerged
+under Sections 230 to 232 and Section 234 of the
+Companies Act, 2013 read with the Companies
+(Compromises, Arrangements and Amalgamations)
+Rules, 2016 and other applicable provisions of
+the Companies Act, 2013 on 1st December 2018
+(Effective date), the appointed date for the said
+demerger being 1st April 2017.
+For KJB & CO LLP,
+Practicing Company Secretaries
+Alpeshkumar J. Panchal
+Partner
+Mem No. 49008
+Date: May 28, 2019
+Place: Mumbai.
+177,996.1
+Average percentage increase made in the salaries of
+employees other than the managerial personnel in the
+financial year ending March 31, 2019 was approximately
+(iii) The number of permanent employees on the rolls of the
+Company as on March 31, 2019: 17501
+(i) Ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial
+year 2018-19 and the percentage increase in remuneration of each Director, Chief Financial Officer and Company
+Secretary during the financial year 2018-19:
+Name of Director and Key
+Managerial Personnel
+Directors:
+Mr. Israel Makov
+Mr. Dilip S. Shanghvi (2)
+Mr. Sudhir V. Valia (2)
+Mr. Sailesh T. Desai
+Information required under Section 197 of the Act Read with Rule 5(1) of the Companies (Appointment and
+Remuneration of Managerial Personnel) Rules, 2014.
+Mr. Kalyanasundaram
+Subramanian (3)
+Non-executive Chairman
+Managing Director
+Whole-time Director
+Ratio of remuneration (¹) of each
+Director to median remuneration
+of employees
+increase/ (decrease) in
+Remuneration(¹) in the
+Financial Year 2018-19
+1.87
+0.0%
+0.55
+Designation
+Annexure - C
+PHARMA
+SUN
+Sweat Equity
+4.
+Commission - as % of profit
+5.
+Others, please specify
+Total
+13.71
+32.81
+46.52
+VII. Penalties / Punishment / Compounding of Offences Against Company, Directors and Other Officers in
+Default: NIL
+Place: Mumbai
+Date: May 28, 2019
+For and on behalf of the Board of Directors
+Israel Makov
+Chairman
+Annual Report 2018-19
+46
+Sun Pharmaceutical Industries Ltd.
+-99.13%
+0.16
+-99.74%
+Whole-time Director
+15.38%
+1.25
+100.00%
+2.70
+N.A
+Mr. Sunil Ajmera
+Chief Financial Officer
+Company Secretary
+Not Applicable
+Not Applicable
+Refer Note 1
+2.25%
+*Retired and ceased to be Directors w.e.f. September 26, 2018
+**Appointed w.e.f. May 25, 2018
+(1) Remuneration to Non-Executive Directors consists only of sitting fees and is based on the number of meetings attended during the year. No
+commission was paid to Non-Executive Directors for the year 2018-19.
+(2) Remuneration of Mr. Dilip Shanghvi and Mr. Sudhir V. Valia is *1/- each for the financial year 2018-19 and the remaining amount of *262800 and
+*79200 respectively pertain to notional value of perquisite as per Income Tax Act.
+(3) Mr. Kalyanasundaram Subramanian, Whole-time Director of the Company, does not receive any remuneration from the Company, however he is
+receiving remuneration from Sun Pharma Laboratories Limited (SPLL), the wholly owned subsidiary of the Company, where he is also Whole-time
+Director and Chief Executive Officer.
+Note 1 - There was no increase in the overall remuneration as approved by the Board of Directors for the FY 2018-19. However, based on calculation
+of amounts as per Form 16 for the year 2017-18 (annualised, as he was for the part of the year in 2017-18) and for the year 2018-19, the increase
+amounts to 12.64%
+Fee for attending
+(ii) The percentage increase in the median remuneration of
+employees in the financial year 2018-19 (Median -2019/
+Median 2018): 5.12%
+3.12
+(iv) Average percentile increase already made in the salaries
+of employees other than the managerial personnel
+in the last financial year and its comparison with the
+percentile increase in the managerial remuneration
+and justification thereof and point out if there are
+any exceptional circumstances for increase in the
+managerial remuneration:
+-71.43%
+Non-executive Independent Director
+Non-executive Independent Director
+Non-executive Independent Director
+Non-executive Independent Director
+25.44
+-0.46%
+Whole-time Director
+N.A
+N.A
+Mr. S. Mohanchand Dadha*
+Non-executive Independent Director
+2.08
+-37.50%
+Mr. Keki M. Mistry*
+Mr. Ashwin S. Dani*
+Ms. Rekha Sethi
+Mr. Vivek Chaand Sehgal
+Mr. Gautam Doshi**
+Key Managerial Personnel:
+Mr. C.S.Muralidharan
+Non-executive Independent Director
+1.25
+-25.00%
+0.42
+20.9
+A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
+173,501.5
+177,975.2
+20347779
+0.85
+20347779
+0.85
+in Share holding
+Note: Shareholding has been consolidated on PAN basis.
+#Pursuant to Scheme of Amalgamation, Shanghvi Finance Private Limited ("SFPL"), which is a part of the Promoter Group of the Company, has w.e.f.
+23.10.2018 acquired 95,94,89,975 Equity Shares of the Company representing 39.99% of the total paid-up equity share capital of the Company from
+11 Transferor Companies namely 1) erstwhile Viditi Investment Private Limited; 2) erstwhile Tejaskiran Pharmachem Industries Private Limited;
+3) erstwhile Quality Investment Private Limited; 4) erstwhile Family Investment Private Limited; 5) erstwhile Virtuous Share Investments Private
+Limited; 6) erstwhile Virtuous Finance Private Limited; 7) erstwhile Sholapur Organics Private Limited; 8) erstwhile Jeevanrekha Investrade Private
+Limited; 9) erstwhile Package Investrade Private Limited; 10) erstwhile Asawari Investment and Finance Private Limited; and 11) erstwhile Nirmit
+Exports Private Limited, which were forming part of the promoter group of the Company and were collectively holding the aforementioned equity
+shares of the Company.
+At the end of the year
+*The trading has taken place on various dates, therefore the change has been shown on consolidated basis.
+Shareholding at the beginning of
+the year
+Cumulative shareholding
+during the year
+Sr.
+Name of Director/KMP
+No.
+No. of
+shares
+% of total
+shares
+(v) Shareholding of Directors and Key Managerial Personnel: (Held singly or jointly as first holder)
+0.85
+20347779
+0.16
+in Share holding
+At the end of the year
+24286809
+1.01
+24286809
+1.01
+10.
+UTI - Nifty
+At the beginning of the year
+16627671
+0.69
+16627671
+0.69
+Exchange Traded Fund
+Increase / Decrease
+Various dates during the year*
+3720108
+No. of
+shares
+% of total
+Shares of the
+of the company
+company
+Kalyanasundaram Subramanian
+Increase Decrease
+in Share holding
+At the beginning of the year
+At the end of the year
+At the beginning of the yearⓇ
+October 05, 2018
+230285690
+230285690
+14345019
+9.60
+230285690
+9.60
+9.60
+230285690
+9.60
+0.60
+14345019
+0.60
+14345019
+0.60
+14345019
+in Share holding
+1.01
+Increase Decrease
+Sailesh T. Desai
+1.
+Israel Makov
+At the beginning of the year
+At the end of the year
+0
+0
+0
+0
+0
+173,501.5
+0
+0
+2.
+Dilip S. Shanghvi
+At the beginning of the year
+At the end of the year
+3.
+Sudhir V. Valia
+4.
+5.
+24286809
+0.21
+5032051
+Increase Decrease
+Various dates during the year*
+(3740000)
+(0.15)
+31384907
+1.31
+in Share holding
+At the end of the year
+31384907
+1.31
+31384907
+1.31
+8.
+Reliance Capital Trustee
+At the beginning of the year
+16376928
+0.68
+& Finance (P) Ltd.
+16376928
+1.46
+1.46
+31322421
+1.31
+31322421
+1.31
+1702560
+0.07
+33024981
+1.38
+At the end of the year
+33024981
+1.38
+33024981
+1.38
+7.
+Lakshdeep Investments
+At the beginning of the year
+35124907
+35124907
+0.60
+0.68
+various Fund Accounts
+No.
+top 10 shareholders
+No. of
+shares
+% of total
+Shares of the
+company
+No. of
+% of total
+Shares of the
+shares
+9.
+Matthews
+At the beginning of the year
+19254758
+0.80
+19254758
+company
+0.80
+Pacific Tiger Fund
+Increase
+Decrease
+Various dates during the year*
+For Each of the
+Co Ltd. A/C Reliance
+Large Cap Fund and
+Sr.
+Cumulative shareholding
+during the year
+Increase
+Decrease
+Various dates during the year*
+14448920
+0.60
+30825848
+1.28
+in Share holding
+At the end of the year
+30825848
+1.28
+30825848
+1.28
+Specialty in progress
+STATUTORY REPORTS > Board's Report
+Shareholding at the beginning of
+the year
+43
+3740747
+(2000)
+0
+3740747
+No. of
+% of total
+Shares of the
+shares
+shares
+of the company
+company
+12.
+% of total
+shares
+CS Muralidharan
+0.16
+0
+0
+0
+At the end of the year
+0
+0
+At the beginning of the year
+No. of
+Name of Director / KMP
+Sr.
+No.
+As on May 25, 2018
+8000
+0.00
+8000
+0.00
+At the end of the year
+8000
+0.00
+8000
+0.00
+Annual Report 2018-19
+44
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Shareholding at the beginning of
+the year
+Cumulative shareholding
+during the year
+0
+13.
+Sunil Ajmera
+At the beginning of the year
+At the end of the year
+Indebtedness at the beginning of the financial year
+i) Principal Amount
+108.2
+68,731.9
+118.3
+68,958.4
+ii) Interest due but not paid
+Total (i+ii+iii)
+iii) Interest accrued but not due (2)
+9.1
+117.3
+40.0
+68,771.9
+118.3
+49.1
+69,007.5
+Change in Indebtedness during the financial year
+Addition: Principal Amount (3)
+Reduction: Principal Amount (3)/(4)
+Indebtedness
+Gautam Doshi#
+Loans
+Deposits(1)
+0
+0
+0
+0
+0
+0
+0
+0
+*Was Director upto September 26, 2018,
+# appointed as Director w.e.f. May 25, 2018,
+@includes shares transferred as margin, if any
+$ The trading has taken place on various dates, therefore the change has been shown on consolidated basis.
+V. INDEBTEDNESS
+Indebtedness of the Company including interest outstanding/accrued but not due for payment
+39
+Secured Loans
+Unsecured
+(in Million)
+Total
+excluding deposits
+11.
+0
+0
+201
+0.00
+6.
+S. Mohanchand Dadha'
+At the beginning of the year
+0
+0
+0.00
+0
+7.
+Keki M. Mistry*
+As on September 26, 2018
+At the beginning of the year
+As on September 26, 2018
+0
+0
+0
+0
+0
+201
+At the end of the year
+0.00
+0.16
+(0.00)
+3738747
+0.16
+At the end of the yearⓇ
+3738747
+0.16
+3738747
+0
+At the beginning of the year
+Various dates during the year$
+0
+0
+0
+0
+201
+0.00
+201
+43270
+0.00
+0.16
+0.00
+0
+0
+0
+At the end of the year
+0
+0
+0
+0
+10.
+Vivek Chaand Sehgal
+At the beginning of the year
+0
+0
+At the end of the year
+0
+0
+43270
+0
+At the beginning of the year
+0
+9.
+Rekha Sethi
+0.00
+43270
+43270
+8.
+Ashwin S. Dani*
+At the beginning of the year
+0
+0.00
+0
+0
+As on September 26, 2018
+0
+0
+0
+0
+0
+3. Awareness generation programme within the community
+for the importance of tree plantation
+4. Celebration of Environment Day in Schools
+The Company has made an investment of 1.86 Million
+during the FY 2018-19 in various locations like Ahmednagar,
+Panoli, Toansa, Maduranthakam and Paonta which has
+benefitted communities at large.
+Water Conservation - Pond Deepening Project
+Water Conservation - Pond Deepening Project is an
+initiative undertaken by Sun Pharma as an alignment with
+flagship Scheme of Gujarat Government, titled as "Sujalam
+Sufalam Yojana" which focuses on water conservation during
+rainy season to increase the availability of water in rural areas
+where local villagers & communities are directly dependent
+upon local water bodies like ponds and ground water for
+their survival. This project was implemented in Ankleshwar,
+Halol, Karkhadi and Panoli with an investment of 1.62
+Million during the FY 2018-19.
+Specialty in progress
+STATUTORY REPORTS > Board's Report
+Rural Development projects were implemented to improve
+the lives of rural population in terms of access to facilities
+such as healthcare and education. The Company has
+undertaken various activities such as Installation of Solar
+lights in Abhetwa Village, Halol Taluka, Gujarat, Installation
+of Traffic Signal lights in Ahmednagar Taluka, Maharashtra.
+Construction of Community Kitchen Area in Dahej, Gujarat,
+Provision of LPG connection and Utensils in Anganbari
+Centers of rural areas of Madurantakam Taluka, Tamilnadu
+and Playground development at Panoli, Gujarat.
+53
+Rural Development Project
+The company has fulfilled its social responsibility after
+addressing the needs of rural neighbouring communities
+in the vicinity of its operational manufacturing sites with
+an investment of 1.53 Million during the FY 2018-19
+and has benefitted 4,132 villagers and other communities
+through this project.
+Disaster Relief Programme
+Sun Pharma supported the cause of immediate disaster relief
+for communities during the flood affected disaster that took
+place in Himachal Pradesh and Tamilnadu. The programme
+was taken-up with an investment of *1.01 Million during
+the FY 2018-19.
+Drinking Water Project
+Drinking Water Project was implemented in Toansa
+and Panoli with an aim to provide safe drinking water
+for neighbouring communities residing in vicinity of
+our plant areas.
+2. Distribution of saplings
+Education programme includes various different activities
+such as Infrastructure Upgradation in Schools, Computer
+literacy programme for students, Model School development
+Project, Provision of potable drinking water for the students,
+distribution of stationary/books, etc. These projects were
+implemented by Sun Pharma in various different locations
+with an objective to provide quality education to the
+underserved and under- privileged children of the rural
+remote areas. The project has covered different schools from
+Gujarat, Maharashtra, M.P., Punjab, UT of Dadra & Nagar
+Some of the activities that were undertaken by
+the company are:
+The Company has continued this programme implemented
+towards environment protection and to create awareness
+within the community regarding the importance of
+environment conservation.
+Environment Conservation Programme
+Household toilets are one of the most important aspects
+of sanitation. Company has constructed 216 individual
+household toilets for unprivileged communities based
+at Halol, Silvassa, Ahmednagar and Madurantakam
+locations with an objective to encourage better health for
+communities and improved quality of life amongst people
+living in rural areas. Apart from construction of Individual
+Household Toilets, Sun Pharma has also emphasised upon
+IEC (Information, Education and Communication) activities
+in various locations considering that construction of toilets
+is not sufficient if there is no proper awareness within the
+community regarding the use of toilets. Therefore, Company
+has carried out a Sanitation and Cleanliness drive across all
+project locations, which has benefitted the communities at
+large. The project was undertaken with an investment of
+*5.42 Million during the FY 2018-19 for the construction
+of individual household's toilets and its Sanitation and
+Cleanliness drive programme.
+Sanitation Programme
+Haveli and Tamilnadu and the same has benefitted more
+than 11,821 students with an investment of ₹5.45 Million
+during FY 2018-19.
+Education Programme
+Mobile Medical Unit (MMU) Programme has been designed
+to meet the primary health needs of the communities
+residing in rural areas. The main objective of this programme
+is to provide a range of health care services focused upon
+maternal and child healthcare for populations living in
+remote, inaccessible, un-served and underserved areas at
+the doorsteps of these communities. This programme also
+emphasises on reduction in Maternal and Infant Mortality
+rate, improving health of adolescent girls, Prevention and
+Control of Communicable and Non-communicable diseases,
+Awareness regarding HIV/AIDS within the community.
+The Company has invested *21.61 Million in this programme
+during the FY 2018-19. There were 11 locations covered
+under this project and has served around 147,611 patients
+with Clinical Treatment, whereas 78,255 beneficiaries
+were also benefitted under Preventive and Promotive
+healthcare services.
+Mobile Medical Unit Programme
+At Sun Pharma, our CSR programmes mainly focussed upon
+Health, Education, Sanitation, Drinking water, Environment
+Conservation, Rural Development and Disaster Relief, which
+are designed to improve the quality of life of the people.
+All our CSR endeavours originate from our all-around
+enunciated Corporate Social Responsibility (CSR) Policy and
+our CSR program aims to address the immediate and long
+term needs of the community and focus on where we can
+have the biggest impact. We regularly listen to subject matter
+experts and gather feedback from all stakeholders.
+This project was implemented with an investment of *0.47
+Million for Community water Project at Bhadi Village, District
+Bharuch, Gujarat and for running deep bore well at village
+Toansa in Punjab. 125 Households were provided with clean
+and potable drinking water in upper and lower Toansa village,
+whereas in Panoli, this project aimed at benefitting around
+2,831 villagers of Bhadi village with the help of WASMO.
+Healthcare Programme
+Sun Pharmaceutical Industries Limited ("Sun Pharma") has
+taken-up diversified need-based CSR Projects in rural areas
+lying in the vicinity of its plant locations and also in remote,
+unprivileged areas for sustainable development of people as
+a part of its Social Responsibilities.
+Our main objective is to emphasise on social process, quality
+and ensuring the sustainability, hence our implementation
+approach is strategic in nature, is more inclined towards the
+sustainability of the projects, addressing community needs,
+focussing poorest of the poor, disadvantaged, BPL and
+weaker sections of society.
+1. Roadside tree plantation
+Under Healthcare programme, basic health services such
+as distribution of medicines, mega medical camp and
+maintenance of Subsidiary health center were undertaken at
+Toansa, Punjab, whereas the Company has installed medical
+equipment for Blood Bank development which is benefitting
+the community of Halol area at large. The project has
+benefitted more than 2,240 patients in Toansa and under this
+programme the company has invested 0.37 Million during
+the FY 2018-19.
+Cooling tower centrifugal pumps are replaced with
+inline energy efficient pumps thereby the motor
+energy reduced by more than 50%.
+Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo required
+under the Companies (Accounts) Rules, 2014
+PHARMA
+PHARMA
+SUN
+Sun Pharmaceutical Industries Ltd.
+54
+Annual Report 2018-19
+3. Capital investment on energy conservation equipments
+Capital investment of 91.1 Million is done on energy
+conservation equipments.
+In following factories biomass briquettes are used instead
+of conventional fuel (FO/HSD) - Ahmednagar, Panoli,
+Mohali, Silvassa, Dadra, Karkhadi, Dewas, MKM Chennai,
+Paonta Sahib. In MKM Chennai - Partially power is used
+from the wind mills. In Gurgaon Location - Partially power
+is used from rooftop solar.
+2. Steps taken by the Company for utilising alternate
+sources of energy
+Water Ring Vacuum pumps are replaced with
+Dry Vacuum Pumps.
+Replaced reciprocating air compressor by energy
+efficient screw compressor.
+•
+. Steam condensate recovery is improved.
+Usage of steam with long distribution piping for
+HVAC hot water demand is replaced by Heat pump.
+Annexure - G
+•
+• Old natural cooling towers are replaced with forced
+draft cooling tower to improve the performance of
+utilities.
+Conventional light fittings are replaced with LED
+lighting.
+.
+demand there by substantial saving on Power.
+Designed pump head is reviewed to meet the actual
+•
+Power factor is improved at various sites.
+.
+Hot water generation system for process is changed
+to plate heat exchangers from direct live steam
+heating.
+•
+1. Steps taken or impact on Conservation of Energy
+New motor procurement higher than 30 kW is done
+with energy efficient motor.
+•
+A. Conservation of Energy
+•
+SUN
+Details of CSR spend for the financial year:
+Sun Pharmaceutical Industries Ltd.
+or Activity
+No.
+Identified
+project is
+covered
+where projects
+Project or
+Amount
+spent on the
+projects or
+or programs
+Program
+wise
+programs
+(Direct
+Expenditure)
+Overhead
+Expenditure
+1
+Mobile
+Healthcare
+were undertaken
+(Budget)
+2. Specify the State and District
+Amount
+Outlay
+Mr. Dilip S. Shanghvi, Chairman, Mr. Sudhir V. Valia, Member and
+Ms. Rekha Sethi, Member
+The average net profits of the Company for the last three financial
+years was negative.
+Since, the average net profit of the Company for the last three
+financial years was negative, the Company was not required to
+spend on CSR activities during the previous year. However, the
+Company has voluntarily spent on CSR activities.
+6.
+B. Technology Absorption
+a) Total amount spent for the financial year
+b) Amount unspent, if any
+*39.36 Million
+Nil
+c) Manner in which the amount spent during the Financial year Details given below
+Projects or Programs
+CSR Project
+Sr.
+Sector in
+which the
+1. Local Area or other
+Medical Unit
+Programme
+The contents of CSR policy can be accessed through the web link
+http://www.sunpharma.com/policies and details on projects and
+programmes are forming part of this Annual Report
+under Item
+No.(i)
+Maharashtra), Halol (Panchmahal,
+0.77
+91.02
+Implementing
+Agency:
+1. Help Age
+India
+2. Sun Pharma
+Community
+20.84
+Healthcare
+STATUTORY REPORTS > Board's Report
+Projects or Programs
+Sector in
+1. Local Area or other
+Amount
+Outlay
+Society
+31.60
+agency
+spent Directly
+or through
+implementing
+Gujarat), Mohali (SAS Nagar,
+Punjab), Toansa(SBS Nagar,
+Punjab), Paonta Sahib (Sirmour,
+Himachal Pradesh), Dewas (Dewas,
+Madhya Pradesh), Panoli(Bharuch,
+Specialty in progress
+Gujarat), Ankleshwar(Bharuch,
+Gujarat), Karkhadi(Vadodara,
+Gujarat), Malanpur (Bhind,
+Madhya Pradesh) and
+Madurantakam
+(Kanchipuram,
+Tamilnadu)
+(in Million)
+Cumulative
+expenditure
+upto to the
+reporting
+period
+Amount
+Ahmednagar (Ahmednagar,
+Amount
+The CSR policy of the Company encompasses its philosophy
+towards Corporate Social Responsibility and lays down the
+guidelines and mechanism for undertaking socially useful programs
+for welfare & sustainable development of the community at large.
+The Company has identified health, education & livelihood,
+environment protection, water management and disaster relief as
+the areas where assistance is provided on a need-based and case-
+to-case basis. Your Company persisted with participation in such
+activities at the local, grass root level during the year.
+Prescribed CSR Expenditure (two percent of the amount as
+in item 4 above)
+Laboratories
+Limited
+Purchase of goods,
+property, plant &
+equipment, Revenue
+from contracts
+On-going
+(Wholly
+with customers,
+Sun Pharma
+owned subsidiary)
+2.
+Aditya
+Medisales Limited
+(Direct Subsidiary of
+Shanghvi Finance
+Private Limited
+w.e.f. October
+23, 2018 where
+Mr. Dilip S. Shanghvi,
+Sale of property,
+1.
+if any:
+Amount paid as
+advances, as on
+March 31, 2019
+STATUTORY REPORTS > Board's Report
+49
+Annexure - E
+AOC - 2
+(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 ("the Act”) and Rule 8(2) of the
+Companies (Accounts) Rules, 2014)
+Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section
+(1) of section 188 of the Companies Act, 2013 including certain arm's length transactions under third proviso thereto
+1. Details of contracts or arrangements or transactions not at arm's length basis - NIL
+2. Details of material contracts or arrangement or transactions (i.e. exceeding ten percent of the annual
+consolidated turnover as per the last audited financial statements) at arm's length basis
+Name(s) of the related
+Sr.
+No.
+party and nature of
+relationship
+Nature of contracts/
+arrangements/
+transactions
+Duration of
+the contracts /
+arrangements/
+transactions
+Salient terms of the
+contracts or arrangements
+or transactions including
+the value, if any
+Date(s) of approval
+by the Board, if any:
+Promoter and
+Particulars
+Managing Director
+alongwith his spouse
+holds 100% shares)
+Annual Report on Corporate Social Responsibility (CSR) Activities for the Financial Year 2018-19
+SUN
+PHARMA
+Annexure - F
+Details
+1.
+Sun Pharmaceutical Industries Ltd.
+A brief outline of the Company's CSR policy, including overview
+of projects or programmes proposed to be undertaken
+Reference to the web-link to the CSR policy and
+projects or programmes
+3.
+Composition of the CSR Committee
+4.
+5.
+Average net profit of the Company for last three financial years
+2.
+50
+Annual Report 2018-19
+Israel Makov
+Chairman
+plant & equipment
+and investments,
+Dividend Income,
+Receiving and
+Rendering of Service,
+Reimbursement of
+expenses paid and
+expenses received,
+Loan taken and
+repaid, Interest
+on Loans repaid,
+Interest expense
+and Rent income
+Revenue from
+contracts with
+customers, Rent
+Income and
+Interest Income
+On-going
+The related party
+transactions entered
+during the year were
+in ordinary course of
+business and on an
+arm's length basis. The
+aggregate amount of
+transactions for the
+financial year 2018-19
+was 46,141.8 Million
+Since these
+transactions are in
+the ordinary course
+of business and
+are at arm's length
+basis, approval
+of the Board is
+not applicable.
+Nil
+The related party
+transactions entered
+during the year were
+in ordinary course of
+business and on an
+arm's length basis. The
+aggregate amount of
+transactions for the
+financial year 2018-19
+was 31,418.1 Million
+Since these
+transactions are in
+the ordinary course
+of business and
+are at arm's length
+basis, approval of
+the Board is not
+applicable. However,
+the shareholders'
+approval has been
+obtained at the 25th
+Annual General
+Meeting of the
+√
+Nil
+Company held on
+September 26, 2017.
+Place: Mumbai
+Date: May 28, 2019
+For and on behalf of the Board of Directors
+of the Company
+CSR ACTIVITIES
+CSR Project
+which the
+Project
+Development
+under Item
+No. (x)
+Halol (Panchmahal, Gujarat),
+implementing
+Panoli (Bharuch, Gujarat),
+Ahmednagar (Ahmednagar,
+Development
+Agency:
+GVT-Dahod
+(Kanchipuram, Tamilnadu)
+7.
+Disaster
+Relief Programme
+Disaster
+Paonta (Sirmour, Himachal
+1.01
+Maharashtra), and Madurantakam
+Directly and
+4.51
+0.00
+1.62
+Directly
+Conservation -
+Pond Deepening
+Project
+6.
+Rural
+Development
+Project under
+Item No. (x)
+Rural
+(Bharuch, Gujarat), Ankleshwar
+(Bharuch, Gujarat) and Karkhadi
+(Vadodara, Gujarat)
+Dahej (Bharuch, Gujarat),
+1.70
+1.53
+1.01
+0.00
+0.00
+Directly
+38.27
+1.10
+127.57
+The CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives
+and Policy of the Company.
+Place: Mumbai
+Date: May 28, 2019
+Grand Total
+Dilip S. Shanghvi
+Managing Director
+For and on behalf of the Board of Directors
+Sudhir V. Valia
+Member - CSR Committee and
+Whole-Time Director
+Annual Report 2018-19
+52
+Chairman - CSR Committee and
+Directly
+1.05
+0.00
+8.
+Drinking
+Water Project
+9.
+Healthcare
+Programme
+Relief under
+Item No. (i)
+Drinking
+Water under
+Item No. (i)
+Healthcare
+under Item
+No.(i)
+Pradesh) and Madurantakam
+(Kanchipuram, Tamilnadu)
+Toansa (SBS Nagar, Punjab)
+and Panoli (Bharuch, Gujarat)
+0.45
+0.45
+0.02
+0.62
+Directly
+Halol (Panchmahal, Gujarat) and
+Toansa (SBS Nagar, Punjab)
+0.47
+0.37
+1.22
+Sr.
+1.62
+Halol (Panchmahal, Gujarat), Panoli
+Karkhadi (Vadodara, Gujarat),
+under Item
+No.(ii)
+Malanpur (Bhind, Madhya
+(Ahmednagar, Maharashtra),
+3.
+Sanitation
+Programme
+Education
+Healthcare
+under Item
+No.(i)
+Panoli(Bharuch, Gujarat),
+Madurantakam
+(Kanchipuram, Tamilnadu),
+Dewas (Dewas, Madhya
+Pradesh), Halol (Panchmahal,
+Gujarat), Silvassa (UT of
+Dadra & Nagar Haveli) and
+Toansa(SBS Nagar, Punjab)
+Ahmednagar (Ahmednagar,
+Maharashtra), Silvassa, (UT of
+Dadra & Nagar Haveli), Halol
+(Panchmahal, Gujarat), Panoli
+(Bharuch, Gujarat), Toansa (SBS
+Nagar, Punjab) and Madurantakam
+(Kanchipuram,
+Pradesh), Ahmednagar
+Education
+Programme
+2.
+(Direct
+Expenditure)
+2. Specify the State and District
+(Budget)
+spent on the
+projects or
+or Activity
+No.
+Identified
+project is
+covered
+where projects
+or programs
+were undertaken
+Project or
+programs
+Overhead
+Expenditure
+Program
+wise
+51
+2.10
+(in Million)
+expenditure
+Panoli (Bharuch, Gujarat),
+2.18
+1.86
+0.00
+2.95
+Directly
+Environment
+under Item
+No.(iv)
+Ahmednagar (Ahmednagar,
+Himachal Pradesh), Madurantakam
+(Kanchipuram, Tamilnadu) and
+Toansa (SBS Nagar, Punjab)
+5.
+Water
+Rural
+Maharashtra), Paonta (Sirmour,
+Environment
+Conservation
+Programme
+4.
+Tamilnadu)
+upto to the
+reporting
+period
+Amount
+spent Directly
+or through
+implementing
+agency
+6.76
+5.41
+0.04
+10.76
+Directly and
+Implementing
+Agency:
+SVADES
+5.29
+5.17
+0.25
+13.82
+Directly and
+Implementing
+Agency:
+GVT-Dahod
+Cumulative
+(A) Research and Development
+Expenditure on R&D
+Sun Pharmaceutical Industries Limited is
+committed to learn and adopt the best practices of
+Corporate Governance.
+Revenue
+Specialty in progress
+STATUTORY REPORTS > Corporate Governance
+In terms of requirement of Listing Regulations, the Board has identified the core skills/expertise/competencies of the
+Directors, as given below:
+Knowledge
+Specialisation / Expertise
+Finance & Accounts
+Legal
+Governance
+Industry Knowledge
+Risk Management
+General Management
+Skills
+Strategic Thinking/ Planning Skills
+Non-Executive & Non-Independent Director
+Problem Solving Skills
+Behavioural traits
+Integrity
+Genuine interest
+Decision Making Skills
+Leadership Skills
+Inter-personal skills/ communication
+Active Participation
+57
+The Directors of the Company possess the aforementioned core skills/expertise/competencies.
+The Independent directors fulfill the conditions specified in the Listing Regulations and are independent of
+the management.
+3. Code of Conduct
+The Board of Directors has laid down a Global Code
+of Conduct for all Board members, and all employees,
+including the senior management of the Company.
+All the Directors and senior management have affirmed
+compliance with the Global Code of Conduct as
+approved and adopted by the Board of Directors and a
+declaration to this effect signed by the Managing Director
+has been annexed as Annexure 'A' to the Corporate
+Governance Report. The Global Code of Conduct of the
+Company is available on the website of the Company at
+www.sunpharma.com.
+4. Audit Committee
+The Audit Committee of the Company presently
+comprises of three Directors which include two
+independent non-executive Directors viz. Ms. Rekha
+Sethi, Mr. Gautam Doshi and one Whole-time Director
+viz. Mr. Sailesh T. Desai. At the beginning of the year
+under review, Mr. Keki M. Mistry, Mr. S. Mohanchand
+Dadha, Mr. Ashwin S. Dani and Ms. Rekha Sethi were
+members of the Committee. Mr. Sailesh T. Desai and
+Mr. Gautam Doshi have been appointed as members of
+the Audit Committee with effect from May 25, 2018.
+Mr. Gautam Doshi was appointed as the Chairman of
+Audit Committee w.e.f. September 27, 2018. During the
+year, Mr. Keki M. Mistry who was the Chairman and
+Member of the Audit Committee, Mr. S. Mohanchand
+Dadha and Mr. Ashwin S. Dani, non-executive
+independent Directors, who were members of the Audit
+Committee, ceased to be members of the committee
+with effect from September 26, 2018 due to they
+ceasing to be the Directors of the Company with effect
+from September 26, 2018. The constitution of Audit
+Committee meets with the requirements as laid down
+under Section 177 of the Companies Act, 2013 and also
+of Regulation 18 of the Listing Regulations. Mr. Sunil R.
+Ajmera, the Company Secretary of the Company is the
+Secretary of the Audit Committee.
+The terms of reference of the Audit Committee inter alia
+include: overseeing the Company's financial reporting
+process, reviewing with the management, the annual
+financial statements and auditor's report thereon before
+submission to the board for approval, recommendation
+for appointment, remuneration and terms of appointment
+of auditors of the company, reviewing the adequacy
+of internal audit function, discussion with internal
+auditors of any significant findings and follow up there
+on, evaluation of internal financial controls and risk
+management systems, review functioning of Whistle
+Blower/ Vigil Mechanism, approval of appointment of
+Chief Financial Officer, review and monitor the auditor's
+independence and performance and effectiveness of
+audit process, approval of transactions with related
+parties etc. Further, pursuant to the amendments
+in Listing Regulations the terms of reference of the
+Committee were amended w.e.f. April 1, 2019 to include
+reviewing the utilisation of loans and/ or advances from/
+investment by the holding company in the subsidiary
+exceeding 100 Crore or 10% of the asset size of the
+subsidiary, whichever is lower including existing loans /
+advances / investments.
+The Committee acts as a link between the management,
+external and internal auditors and the Board of Directors
+of the Company.
+Analytical Skills
+Independent Director
+Non-Executive & Non-Independent Director
+Non-Executive & Non-Independent Director
+Non Executive & Non Independent Director
+Independent Director
+Independent Director
+3
+2
+Mr. Ashwin Dani4
+3
+1
+No5
+No
+Not Applicable
+Not Applicable
+Not Applicable Not Applicable
+Not Applicable Not Applicable
+1 The above number of other directorships does not include Directorships, Committee Memberships and Committee Chairmanships in Private Limited,
+Foreign and Section 8 Companies.
+2 The Committee Memberships and Chairmanships in other Companies include Memberships and Chairmanships of Audit and Stakeholders'
+Relationship Committee only.
+3 Mr. Gautam Doshi was appointed as an Additional Independent Director of the Company with effect from May 25, 2018. Mr. Vivek Chaand Sehgal
+and Mr. Gautam Doshi have been appointed as Independent Directors of the Company for a term of 5 (five) years each effective from November
+14, 2017 and May 25, 2018 upto November 13, 2022 and May 24, 2023 respectively by the members at 26th AGM of the Company held on
+September 26, 2018.
+4 Mr. S. Mohanchand Dadha, Mr. Keki Mistry and Mr. Ashwin Dani, who were Independent Directors of the Company, completed second term
+of 2 (two) years of their respective appointments on conclusion of the 26th AGM of the Company, consequently, all the three aforementioned
+Independent Directors retired and ceased to be Directors of the Company w.e.f. the conclusion of the 26th AGM of the Company held on September
+26, 2018. Therefore, they were not Directors as on March 31, 2019.
+5 Mr. Keki M. Mistry, Chairman of the Audit Committee and Nomination and Remuneration Committee could not attend the last 26th Annual General
+Meeting of the Company due to his prior commitments. However, he appointed Mr. S Mohanchand Dadha, member of the Audit Committee and
+Nomination & Remuneration Committee to answer to the shareholders' queries on his behalf at the 26th Annual General Meeting.
+Names of the Indian listed entities where the Directors of the Company hold Directorship and the category of directorship as
+on March 31, 2019:
+Name of the Director
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Ms. Rekha Sethi
+Mr. Vivek Chaand Sehgal
+Mr. Gautam Doshi
+Other Indian Listed entities
+in which they hold Directorship
+Sun Pharma Advanced Research Company Ltd
+Sun Pharma Advanced Research Company Ltd
+CESC Ltd
+Spencer's Retail Limited
+Motherson Sumi Systems Ltd
+Samvardhana Motherson International
+Ltd (Debt Listed)
+Piramal Phytocare Ltd
+Reliance Home Finance Ltd
+Category of Directorship
+Chairman and Managing Director
+Executives from the Finance Department, representatives
+of the Statutory Auditors and Internal Auditors are
+also invited to attend the Audit Committee Meetings,
+whenever necessary.
+Mr. Keki Mistry4
+The Committee has discussed with the Statutory
+and Internal auditors about their audit methodology,
+audit planning and significant observations/
+suggestions made by them.
+Annual Report 2018-19
+Capital
+Company Secretary of the Company is the Secretary of
+the Committee.
+The terms of reference of the Nomination and
+Remuneration Committee inter alia include; to determine
+the Company's policy on specific remuneration packages
+for executive directors, to review, recommend and/
+or approve remuneration to Whole-time Directors,
+to review and approve the Remuneration Policy of
+the Company, to formulate criteria for evaluation of
+Independent Directors and the Board, to devise a policy
+on Board Diversity, to identify persons who are qualified
+to become directors and who may be appointed in
+senior management in accordance with the criteria laid
+down and recommend to the Board the appointment
+or removal of such persons and carry out evaluation of
+every directors' performance, etc. Further, pursuant to
+the amendments in Listing Regulations the terms of
+reference of the Committee were amended w.e.f. April 1,
+2019, to inter alia include recommending to the board,
+all remuneration, in whatever form, payable to senior
+management, etc.
+The Nomination and Remuneration Committee has
+adopted the criteria as provided in the Guidance
+Note on Board Evaluation by Securities and Exchange
+Board of India vide its notification no. SEBI/HO/
+CFD/CMD/CIR/P2017/004 dated January 5, 2017
+for evaluation of the Individual Directors including
+Independent Directors. The said criteria provides certain
+parameters like knowledge, competency, fulfillment
+of functions, availability and attendance, initiative,
+integrity, contribution, independence and independent
+views and judgment.
+Four meetings of Nomination and Remuneration
+Committee were held during the year ended March 31,
+2019. The dates on which the meetings were held
+are as follows:
+May 25, 2018; August 14, 2018; November 13, 2018 and
+February 12, 2019.
+The attendance of each Member of the Committee
+is given below:
+Name of the Director
+Number of
+Nomination and
+Remuneration
+Committee Meetings
+entitled to attend
+Number of
+Nomination and
+Remuneration
+Committee Meetings
+1 Appointed as Chairperson of the Committee with effect from
+September 27, 2018
+attended
+4
+4
+4
+4
+Mr. Gautam Doshi²
+2
+2
+Mr. Keki M. Mistry³
+2
+2
+Mr. S. M. Dadha³
+1
+1
+Ms. Rekha Sethi¹
+Mr. Israel Makov
+5. Nomination and Remuneration Committee
+The Nomination and Remuneration Committee
+presently comprises of three Non-executive
+Directors viz. Ms. Rekha Sethi, Mr. Israel Makov
+and Mr. Gautam Doshi. At the beginning of the year
+under review, Mr. Israel Makov, Ms. Rekha Sethi and
+Mr. Keki Mistry were members of the Committee.
+Mr. Gautam Doshi has been appointed as the member
+of the Committee with effect from August 14, 2018.
+During the year Mr. S. Mohanchand Dadha was
+appointed as the member of the Committee with
+effect from May 25, 2018, however he ceased to
+be the member of the Committee with effect from
+September 26, 2018 due to he ceasing to be the
+Director of the Company with effect from September 26,
+2018. Mr. Keki Mistry, Chairman and Member of the
+Committee, ceased to be the member of the Committee
+with effect from September 26, 2018 due to he
+ceasing to be the Director of the Company with effect
+from September 26, 2018. Ms. Rekha Sethi has been
+appointed as the Chairperson of the Committee with
+effect from September 27, 2018. The constitution of the
+Nomination and Remuneration Committee meets with
+the requirements of Section 178 of the Companies Act,
+2013 as also the requirements laid down in Regulation
+19 of the Listing Regulations. Mr. Sunil R. Ajmera, the
+3 Retired and ceased to be Directors and members of the Committee
+with effect from September 26, 2018.
+2 Appointed as member of the Committee with effect
+from May 25, 2018.
+58
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Four Audit Committee Meetings were held during the
+year ended March 31, 2019.
+The dates on which the Meetings were held
+are as follows:
+May 25, 2018; August 14, 2018; November 13, 2018;
+and February 12, 2019.
+The attendance of each Member of the Committee
+is given below:
+Name of the Director
+Number of Audit
+Committee Meetings
+entitled to attend
+Number of Audit
+Committee Meetings
+attended
+Mr. Gautam Doshi¹
+Ms. Rekha Sethi
+3
+3
+4
+4
+Mr. Sailesh T. Desai²
+3
+3
+Mr. Keki M. Mistry³
+2
+2
+Mr. S. M. Dadha³
+2
+2
+Mr. Ashwin S. Dani³
+2
+1
+1 Appointed as member of the Committee with effect from
+May 25, 2018 and appointed as Chairman with effect from
+September 27, 2018
+In addition, the Committee has discharged such other
+role/ function as envisaged under Regulation 18 of the
+Listing Regulations, 2015 and the provisions of Section
+177 of the Companies Act, 2013.
+Not Applicable
+Specialty in progress
+Yes
+Israel Makov
+Chairman
+Specialty in progress
+STATUTORY REPORTS > Corporate Governance
+Corporate Governance
+55
+In compliance with Regulation 34(3) read with Schedule
+V of the Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations, 2015
+("Listing Regulations"), as amended from time to time the
+Company submits the Corporate Governance Report for the
+year ended March 31, 2019.
+1. Company's Philosophy on Code of Corporate
+Governance
+Sun Pharmaceutical Industries Limited's philosophy
+envisages reaching people touching lives globally by
+following the core values of the Company viz Quality,
+Reliability, Consistency, Trust, Humility, Integrity,
+Passion and Innovation which are also a way of life
+Composition and category of Directors is as follows:
+Category of Directors
+Non-Promoter Non-Executive and
+Non-Independent Director
+Promoter Executive Director
+Non-Promoter Executive Directors
+Non-Executive Independent Directors
+Place: Mumbai
+Date: May 28, 2019
+Name of the Directors
+2. Board of Directors
+Mr. Israel Makov (Chairman)
+The present strength of the Board of Directors of your
+Company is eight Directors.
+Mr. Dilip S. Shanghvi (Managing Director)
+Mr. Sudhir V. Valia* (Whole-time Director)
+Mr. Sailesh T. Desai (Whole-time Director)
+Mr. Kalyanasundaram Subramanian (Whole-time Director)
+Ms. Rekha Sethi
+Mr. Vivek Chaand Sehgal
+Mr. Gautam Doshi
+Inter-se Relationship between
+Directors
+Brother-in-law of
+Mr. Sudhir V. Valia
+Brother-in-law of
+Mr. Dilip S. Shanghvi
+*Mr. Sudhir Valia will step down from the position of Whole-time Director of the Company to Non-Executive Director of the Company, with effect
+from May 29, 2019. He shall continue as a Non-Promoter, Non-Executive and Non-Independent Director of the Company.
+Number of Board meetings held during the year ended March 31, 2019 and the dates on which held:
+Five Board meetings were held during the year. The dates on which the meetings were held during the year ended March 31,
+2019 are as follows:
+at the Company. These values form a base of the
+Corporate Governance practices of the Company.
+The Company ensures to work by these principles in all
+its interactions with stakeholders, including shareholders,
+employees, customers, consumers, suppliers and
+statutory authorities.
+For and on behalf of the Board of Directors
+51,402.9
+32,233.0
+66,025.4
+38,610.2
+Year ended
+March 31, 2019
+Not Applicable Not Applicable
+Year ended
+March 31, 2018
+(in Million)
+Earnings
+Outgo
+C) Foreign Exchange Earnings and Outgo -
+3. Your company has not imported technology during
+the last 5 years reckoned from the beginning of the
+financial year.
+(f) Clinical studies of some products (complex and
+difficult to formulate) have been carried out at our
+in-house clinical pharmacology units. This has helped
+to maintain R&D quality and regulatory compliance
+with significantly reduced cost.
+(e) The Company has benefited from reduction in cost
+due to import substitution and increased revenue
+through higher exports.
+(d) We are among the few selected companies that
+have set up completely integrated manufacturing
+capability for the production of anticancer, hormones,
+peptide, immunosuppressant and steroidal drugs.
+(c) Offers technologically advanced differentiated
+products which are convenient and safe for
+administration to patients.
+(b) Not dependent on imported technology, can make
+high-end products available at competitive prices
+by using indigenously developed manufacturing
+processes and formulation technologies.
+(a) Offers complete basket of products under chronic
+therapeutic classes. Many products are in the
+pipeline for future introduction in India, emerging
+markets, as well as US and European generic market.
+The company has developed an ability to challenge
+patents in the US market, and earn exclusivity.
+e.g. product improvement, cost reduction, product
+development, import substitution
+2. Benefits derived as a result of the above efforts
+Novel compact dosage forms having differentiation
+with regards to improved stability and/or reduced
+pharmacokinetic variability have been developed for
+the Indian market. Stable liquid oral formulations of
+labile products are also being developed.
+Process robustness has been implemented for wide
+range of products with the objective to reduce cost
+and increase in-process capability.
+There has been thrust on the development of novel
+technologies like use of green reagents for chemical
+transformations in API synthesis and ultrasonic
+crystallisation for achieving required particle size,
+capillary flow reactors for continuous process and
+safety related studies using reaction calorimetry.
+Product Life Cycle management has been undertaken
+for key products. Backward integration is a key
+strategic objective and many of our products enjoy
+the benefit of this backward integration.
+The Company continues to invest on R&D, both as
+revenue expenses as well as capital investments.
+Part of this spending is for developing complex
+products, specialty products, generic products, and
+API technologies that are complex and may require
+dedicated manufacturing blocks. Investments have
+been made in creating research sites, employing
+scientifically skilled and experienced manpower,
+adding equipment, sponsored research and in
+accessing world class consultants to continuously
+upgrade the research understanding of the scientific
+team in the technologies and therapy areas
+of our interest.
+(B) Technology Absorption, Adaptation and Innovation
+1. Efforts in brief, made towards technology
+absorption, adaptation and innovation
+1,591.0
+8,011.5
+9,602.5
+10.9%
+9.8%
+9,620.8
+9,029.9
+590.9
+Year ended
+March 31, 2019
+(in Million)
+Year ended
+March 31, 2018
+Total Turnover
+Total
+May 25, 2018; August 14, 2018; September 26, 2018; November 13, 2018 and February 12, 2019.
+Annual Report 2018-19
+Total R&D expenditure as % of
+Sun Pharmaceutical Industries Ltd.
+Yes
+3
+Mr. Kalyanasundaram Subramanian
+5
+5
+Yes
+2
+Ms. Rekha Sethi
+5
+4
+No
+5
+1
+Mr. S M Dadha4
+Mr. Vivek Chaand Sehgal³
+5
+5
+Yes
+5
+Mr. Gautam Doshi³
+5
+5
+Yes
+4
+4
+1
+56
+3
+3
+5
+5
+1
+1
+PHARMA
+SUN
+Number of Board meetings the Directors were entitled to attend, attendance of each Director at the Board meetings and at
+the last Annual General Meeting (AGM), and number of other Directorships and Chairmanships/Memberships of Committee
+of each Director for the year under review, is given below:
+Mr. Sailesh T. Desai
+Attendance particulars for the
+year ended March 31, 2019
+Name of the Director
+Number of Board Number of
+Meetings Entitled Board Meetings
+to attend
+Last AGM held
+on September
+Other
+No. of other Directorships and Committee
+Memberships / Chairmanships as of March 31, 20191
+Committee
+Memberships²
+Committee
+Chairmanships²
+attended
+26, 2018
+Mr. Israel Makov
+Directorships
+5
+No
+Mr. Dilip S. Shanghvi
+3
+4
+4
+Mr. Sudhir V. Valia
+5
+Yes
+5
+5
+Yes
+5
+1
+May 24, 2018; August 13, 2018; November 12, 2018 and
+February 11, 2019.
+The attendance of each Member of the Committee
+is given below.
+Name of the Director
+Mr. Sudhir V. Valia
+Mr. Sailesh T. Desai
+Mr. Dilip S. Shanghvi
+Mr. S. M. Dadha¹
+4
+Committee of
+4
+4
+4
+2
+Directors (Allotment)
+Meetings attended
+3
+Four meetings of the Committee of Directors (Allotment)
+were held during the year ended March 31, 2019.
+The dates on which Meetings were held are as follows:
+Number of Committee Number of
+of Directors
+(Allotment) Meetings
+entitled to attend
+Mr. Sailesh T. Desai. Mr. Sudhir V. Valia is the Chairman
+of the Committee and Mr. Sunil R. Ajmera, Company
+Secretary is the Secretary of the Committee. Mr. S.
+M. Dadha who was also a member of the Committee at
+the beginning of the year ceased to be member of the
+Committee with effect from September 26, 2018 due to
+he ceasing to be a Director of the Company with effect
+from September 26, 2018.
+2
+8. Committee of Directors (Allotment)
+Mr. Gautam Doshi¹
+Mr. Sudhir V. Valia
+Mr. Dilip S. Shanghvi
+Mr. S. M. Dadha²
+Number of
+Stakeholders'
+Relationship
+Committee Meetings
+entitled to attend
+2
+4
+4
+2
+Number of
+Stakeholders'
+Relationship
+Committee Meetings
+attended
+3
+4
+2
+1 Appointed as member with effect from August 14, 2018 and
+appointed as Chairman with effect from September 27, 2018
+2 Retired and ceased to be Director and member of the Committee
+with effect from September 26, 2018.
+Specialty in progress
+STATUTORY REPORTS > Corporate Governance
+61
+Investor Complaints:
+The total numbers of complaints received and resolved
+to the satisfaction of shareholders, during the year under
+review were 1. There were no complaints pending at the
+beginning or at the end of the year.
+The Committee of Directors (Allotment)
+presently comprises of three Directors viz.
+Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia and
+3
+2
+2
+The Committee of Directors (Allotment) inter-alia has
+the following powers: To allot shares pursuant to ESOP
+Schemes and to issue the equity share certificates to
+the shareholders holding the shares in physical form, to
+perform any or all of the acts, deeds, things and matters
+as may be required in connection with such issue,
+allotment and Listing of Equity Shares.
+The attendance of each member of committee is as
+follows:
+Name of the Director
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Mr. CS Muralidharan
+Number of Risk
+Management
+Committee Meetings
+entitled to attend
+2
+22
+Number of Risk
+Management
+Committee Meetings
+attended
+2
+2
+Annual Report 2018-19
+62
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Name of the Director
+During the year ended March 31, 2019, two meetings
+of Risk Management Committee were held on May 24,
+2018 and November 12, 2018.
+The Risk Management Committee presently comprises of
+Mr. Dilip S. Shanghvi, Managing Director of the Company,
+Mr. Sudhir V. Valia, Whole-time Director of the Company
+and Mr. C. S. Muralidharan, Chief Financial Officer
+of the Company. The Chairman of the Committee is
+Mr. Dilip S. Shanghvi. The constitution of the Committee
+meets the requirements of Regulation 21 of the Listing
+Regulations. The terms of reference of the committee
+inter alia include: to formulate and recommend to the
+Board a Risk Management Plan/Policy, to implement,
+monitor and review the risk management plan for the
+Company, to recommend and implement procedures for
+risk assessment and minimisation, to monitor the Risk
+Management Policy of the Company from time to time,
+to discharge such other functions and exercise such other
+powers as may be delegated/ directed by the Board of
+Directors from time to time. Mr. Sunil R. Ajmera, the
+Company Secretary of the Company is the Secretary of
+the Committee.
+10.Risk Management Committee
+2
+9. Corporate Social Responsibility Committee
+The Corporate Social Responsibility Committee
+presently comprises of three Directors viz. Mr. Sudhir
+V. Valia, Ms. Rekha Sethi and Mr. Dilip S. Shanghvi with
+Mr. Dilip S. Shanghvi as the Chairman. The constitution
+of the Corporate Social Responsibility Committee meets
+the requirements of section 135 of the Companies Act,
+2013. Mr. Sunil R. Ajmera, the Company Secretary of the
+Company is the Secretary of the Committee. The terms
+of reference of the Corporate Social Responsibility
+Committee include to formulate and recommend to
+the Board, a Corporate Social Responsibility Policy, to
+monitor the Corporate Social Responsibility Policy of
+the Company from time to time, to recommend the
+amount of expenditure to be incurred on the activities,
+to monitor amount spent on the CSR initiatives of the
+Company as per the CSR policy, to discharge such other
+functions and exercise such other powers as may be
+delegated/ directed by the Board of Directors from
+time to time etc. The contents of the CSR Policy of the
+Company can be accessed through the web link: http://
+www.sunpharma.com/policies.
+During the year ended March 31, 2019, two meetings of
+Corporate Social Responsibility Committee were held on
+May 24, 2018 and November 12, 2018.
+The attendance of each member of Committee is as
+follows:
+Name of the Member
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Ms. Rekha Sethi
+Number of Corporate
+Social Responsibility
+Committee
+1 Retired and ceased to be Director and member of the Committee
+with effect from September 26, 2018.
+Meetings entitled to
+attend
+Committee Meetings
+attended
+2
+1
+2
+2
+2
+Number of
+Corporate Social
+Responsibility
+The attendance of each Member of the Committee
+is given below:
+Mr. Israel Makov
+March 31, 2019. The dates on which Meetings were held
+are as follows:
+For the year ended March 31, 2019
+(Amount in *)
+Salary 1
+Bonus
+1
+1
+Perquisites
+/ Benefits²
+2,62,800
+79200
+Sitting Fees
+Total
+98,67,000
+19,73,400 23,92,142
+2,62,801
+79,201
+1,42,32,542
+9,00,000
+9,00,000
+15,00,000 15,00,000
+6,00,000
+Mr. Keki M. Mistry (upto September 26, 2018)
+6,00,000
+Mr. S. Mohanchand Dadha (upto September 26, 2018)
+Mr. Vivek Chaand Sehgal
+STATUTORY REPORTS > Corporate Governance
+59
+2 Appointed as member of the Committee with effect from
+August 14, 2018
+6. Remuneration of Directors
+3 Retired and ceased to be Directors and members of the Committee
+with effect from September 26, 2018.
+The remuneration of the Managing Director and Whole-time Director(s) is approved by the Board, as per recommendation
+of the Nomination and Remuneration Committee within the overall limit fixed by the shareholders at their meetings.
+The Non-Executive Directors of the Company are entitled to commission, if and to the extent approved by the Board,
+of upto 1% as approved by the members, in addition to the sitting fees of $100,000/- payable to the Non-Executive
+Directors for attending each meeting of the Board and/or of Committee thereof. No commission was paid to
+Non-Executive Directors for the year 2018-19.
+The details of Remuneration paid/payable to the Directors of the Company for the year ended March 31, 2019
+are given below:-
+Directors
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Mr. Sailesh T. Desai
+Mr. Kalsundaram Subramanian³
+11. Corporate Governance and Ethics Committee
+Ms. Rekha Sethi
+Mr. Gautam Doshi (appointed with effect from May 25, 2018)
+13,00,000 13,00,000
+10,00,000 10,00,000
+6,00,000
+The details of Equity Shares held by Non-Executive
+Directors as on March 31, 2019 are as follows:
+Director
+Mr. Israel Makov
+Ms. Rekha Sethi
+Mr. Vivek Chaand Sehgal
+Mr. Gautam Doshi
+No. of Equity Shares held (held singly
+or jointly as first holder)
+Nil
+Nil
+Nil
+8000
+7. Stakeholders' Relationship Committee
+The Stakeholders' Relationship Committee presently
+comprises of three Directors viz. Mr. Gautam Doshi,
+Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia. At the
+beginning of the year under review, Mr. Sudhir Valia,
+Mr. Dilip Shanghvi and Mr. S. Mohanchand Dadha
+were members of the Committee. During the year,
+Mr. Gautam Doshi was appointed as member of
+the Committee with effect from August 14, 2018
+and as Chairman of the Committee with effect from
+September 27, 2018. Mr. S. Mohanchand Dadha
+ceased to be member and Chairman of the Committee
+with effect from September 26, 2018 due to he
+ceasing to be a Director of the Company with effect
+from September 26, 2018. The constitution of the
+Stakeholders' Relationship Committee meets with the
+requirements of Section 178 of the Companies Act, 2013
+and also of Regulation 20 of the Listing Regulations.
+Mr. Sunil R. Ajmera, the Company Secretary of the
+Company is the Secretary of the Committee. The Board of
+Directors has delegated the power of approving transfer
+of securities to M/s. Link Intime India Pvt. Ltd, and/or the
+Company Secretary of the Company.
+The terms of reference of the Committee inter
+alia include the following: To look into redressal of
+grievances of shareholders, debenture holders and
+other security holders of the Company, to consider
+and resolve grievances of the security holders of the
+Company including complaints related to transfer of
+shares, non-receipt of balance sheet, non-receipt of
+declared dividends, etc, to approve issue of duplicate
+share certificates and to oversee and review all matters
+connected with the transfer, transmission and issue of
+securities, to oversee the performance of the Registrar
+and Transfer Agents and recommend measures for
+overall improvement in the quality of investor services,
+etc. However, pursuant to amendments in the Listing
+Regulations, the terms of reference of the Committee
+have been revised and replaced w.e.f. April 1, 2019 to
+inter alia include the following: Resolving the grievances
+of the security holders of the Company including
+complaints related to transfer/transmission of shares,
+non-receipt of annual report, non-receipt of declared
+dividends, issue of new/duplicate certificates, general
+meetings; Review of measures taken for effective
+exercise of voting rights by shareholders; Review of
+adherence to the service standards adopted by the
+Company in respect of various services being rendered
+by the Registrar & Share Transfer Agent; Review of the
+various measures and initiatives taken by the Company
+for reducing the quantum of unclaimed dividends and
+ensuring timely receipt of dividend warrants/annual
+reports/statutory notices by the shareholders of the
+Company, to investigate any activity within its terms of
+reference, to seek information from share transfer agents,
+to obtain outside legal or other professional advice and
+to secure attendance of outsiders with relevant expertise,
+if it considers necessary and have full access to the
+information contained in the records of the Company.
+The Board has designated severally, Mr. Sunil R.
+Ajmera, Company Secretary and Mr. Ashok I. Bhuta, Sr.
+G.M - Secretarial as Compliance Officers for the purposes
+of/under rules, regulations etc. issued by the Securities
+Exchange Board of India, Stock Exchanges, and
+Companies Act, 2013.
+Four meetings of the Stakeholders' Relationship
+Committee were held during the year ended
+d) The remuneration of Whole-time Directors consists
+only of fixed components.
+c) There is no separate provision for payment of
+severance fees to Whole-time Director(s).
+b) The Company had formulated two Schemes for grant
+of stock options to the eligible employees of erstwhile
+Ranbaxy Laboratories Ltd., pursuant to the Scheme
+of Arrangement for merger of Ranbaxy Laboratories
+Ltd., into the Company out of which one scheme was
+completed in August 2017. None of the Directors are
+entitled to stock options.
+PHARMA
+6,00,000
+2,00,000
+2,00,000
+Mr. Ashwin S. Dani (upto September 26, 2018)
+1 Salary includes Special Allowance.
+2 Perquisites include House Rent Allowance, Leave Travel Assistance, Medical Reimbursement, contribution to Provident Fund and such other
+perquisites, payable to Directors, as per Company Policy.
+3 Mr. Kalyanasundaram Subramanian does not receive any remuneration as a Whole-time Director of the Company. However, Mr.
+Kalayanasundaram Subramanian is also the Whole-Time Director & Chief Executive Officer of Sun Pharma Laboratories Limited, Wholly-Owned
+Subsidiary of the Company, and he receives remuneration from Sun Pharma Laboratories Limited. During the Financial year 2018-19, he received
+total remuneration of *5,54,31,072 (constituting of Salary - 4,93,35,192/-, Bonus - 37,00,800/- and Perquisites - *23,95,080/-.) from Sun
+Pharma Laboratories Limited.
+May 24, 2018; August 13, 2018; November 13, 2018 and
+February 12, 2019.
+Besides this, all the Whole-time Directors to whom
+remuneration is paid are also entitled to encashment of
+leave as per Company policy, and gratuity at the end of
+tenure, as per the rules of the Company.
+a) The Agreement with Mr. Dilip S. Shanghvi,
+Mr. Sudhir V. Valia and Mr. Sailesh T. Desai,
+the Executive Directors for their present term are for
+a period of 5 years as follows; i) from April 1, 2018
+to March 31, 2023 and remuneration for period
+from April 1, 2018 to March 31, 2021 for Mr. Dilip S.
+Shanghvi and ii) from April 1, 2019 to March 31,
+2024 for Mr. Sudhir V. Valia and Mr. Sailesh T.
+Desai and remuneration for period of 3 years from
+April 1, 2019 to March 31, 2022. The agreement
+with Mr. Kalyansundaram Subramanian, Whole-time
+Director, is for a period of 2 years with effect from
+February 14, 2019 to February 13, 2021 without
+any remuneration. Either party to the agreement is
+entitled to terminate the Agreement by giving to
+the other party 30 days' notice in writing. Mr. Sudhir
+Valia will step down from the position of Whole-time
+Director of the Company to Non-Executive Director
+of the Company, with effect from May 29, 2019.
+He shall continue as a Non-Promoter, Non-Executive
+and Non-Independent Director of the Company.
+Consequently the agreement with Sudhir V. Valia for
+remuneration and appointment as Whole-Time
+Director shall be terminated w.e.f. May 29, 2019.
+Annual Report 2018-19
+60
+Sun Pharmaceutical Industries Ltd.
+SUN
+Notes:-
+The Board has constituted a Corporate Governance
+and Ethics Committee with effect from May 28, 2019.
+Mr. Gautam Doshi, Director, Ms. Rekha Sethi, Director,
+Mr. C. S. Muralidharan, CFO and Mr. Ashok Bhuta Senior
+GM - Secretarial & Compliance Officer are the members
+of the Committee. Mr. Gautam Doshi is the Chairman
+of the Committee. The terms of reference of committee
+inter alia include (a) to review the ethical standards and
+best practices in respect of Corporate Governance by
+the Company in spirit, substance and intent perspective
+apart from benchmarking wherever possible with the
+best practices that are comparable across the industry,
+(b) to monitor Company's compliance with the Corporate
+Governance Guidelines and applicable laws and
+regulations and make recommendations to the Board
+on all such matters and on any corrective action to be
+undertaken, as the Committee may deem appropriate,
+(c) to set forth policies in respect of furtherance of its
+objectives and recommend changes and monitor and
+review compliance of such policies by the Company's
+directors, officers and employees, (d) to review,
+recommend changes and monitor the implementation
+of the Related Party Transactions Policy of the Company
+and ensure that the Company is in compliance with
+the applicable regulations in respect of Related Party
+transactions from time to time etc. The Corporate
+Governance and Ethics Committee shall report to the
+Audit Committee.
+3. Approval for continuation of Directorship of
+Mr. Israel Makov (DIN:05299764), Non-executive
+Director and Chairman of the Company, having
+attained the age beyond the age of 75 years
+as required under Regulation 17(1A) of SEBI
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015 which is to be effective from
+April 01, 2019.
+In accordance with Regulation 16 of the Listing
+Regulations during the year ended March 31, 2019,
+16.5 Listing Details
+a) Trading
+Symbol at BSE Ltd.
+Trading Symbol at
+National Stock Exchange
+of India Limited
+(b) Demat ISIN Numbers
+in NSDL and
+CDSL for Equity
+Shares of 1/- each
+SUNPHARMA
+524715
+SUNPHARMA
+On or before, Friday, August 30, 2019
+ISIN No.INE044A01036
+Stock Market Data - Equity Shares of 1/- paid-up value:
+BSE Ltd. (BSE) (in)
+Month's High Price
+National Stock Exchange of India Ltd. (NSE) (in ₹)
+Month's Low Price
+Month's High Price
+Month's Low Price
+April, 2018
+531.25
+16.6
+16.4 Dividend Payment Date:
+From Thursday, August 22, 2019 to
+Details of Book-closure for Equity Shareholders:
+•
+Financial Results: The annual, half-yearly and
+quarterly results are regularly posted by the
+Company on its website www.sunpharma.com and
+are also sent to the shareholders whose e-mail IDs
+are registered with the Company. These are also
+submitted to the Stock Exchanges on which the
+securities of the Company are listed in accordance
+with the requirements of the Listing Regulations and
+published in all English Editions of "Financial Express'
+and Gujarati Edition of 'Financial Express' which is
+published in Ahmedabad.
+Annual Report: Annual Report containing inter alia
+Audited Annual Accounts, Consolidated Financial
+Statements, Board's Report, Auditor's Report,
+and other important information is sent to the
+shareholders whose e-mail IDs are registered
+with the Company and physical copy to the rest
+of the shareholders and others entitled thereto.
+The Management's Discussion and Analysis Report
+forms part of the Annual Report.
+Chairman's Communique: The Chairman's Speech
+is sent to the stock exchanges and placed on the
+website of the Company.
+Reminder to Investors: Reminders for unpaid dividend
+are sent to shareholders, regularly every year.
+Corporate Filing: Announcements, Quarterly
+Results, Shareholding Pattern etc. of the Company
+are regularly filed by the Company with the Stock
+Exchanges and are available on the website of
+BSE Ltd. - www.bseindia.com and National Stock
+Exchange of India Ltd. - www.nseindia.com.
+16.General Shareholder Information
+16.1
+Annual General Meeting:
+Day, Date and
+Time
+Venue
+Wednesday, August 28, 2019
+at 03:15 p.m.
+Crystal Hall, Grand Mercure
+Vadodara Surya Palace, Opposite
+Parsi Agyari, Sayajigunj, Vadodara -
+390005, Gujarat.
+16.2 Financial Calendar (tentative):
+Results for quarter ending
+June 30, 2019
+16.3
+Results for quarter ending
+September 30, 2019
+Results for quarter ending
+December 31, 2019
+Audited Results for year
+ended March 31, 2020
+Second week
+of August 2019.
+Second week
+of November 2019.
+Second week
+of February 2020.
+Third or Fourth
+week of May 2020.
+496.40
+•
+530.95
+May, 2018
+614.50
+October, 2018
+640.45
+550.30
+640.75
+550.00
+November, 2018
+603.75
+679.30
+474.65
+474.50
+December, 2018
+467.00
+391.10
+464.70
+390.60
+January, 2019
+457.15
+604.80
+607.65
+678.80
+September, 2018
+537.50
+434.80
+539.30
+435.00
+June, 2018
+591.30
+470.50
+592.00
+470.15
+July, 2018
+588.25
+529.95
+588.85
+530.70
+August, 2018
+658.90
+549.20
+659.40
+548.85
+496.05
+•
+65
+STATUTORY REPORTS > Corporate Governance
+Akota, Vadodara- 390 020, Gujarat
+Crystal Hall, Grand Mercure Vadodara Surya
+Palace, Opposite Parsi Agyari, Sayajigunj,
+Vadodara 390 020
+September 26, 2018
+2.45 p.m.
+(ii) Special Resolutions passed at the last three Annual General Meetings:
+a) At the Twenty-Fourth Annual General Meeting.
+1. Approval for re-appointment of Mr. Ashwin Dani
+(DIN 00009126), as Independent Director of the
+Company for a further term of 2 years, who would
+not be liable to retire by rotation in terms of
+Section 152(6) of Companies Act, 2013.
+2. Approval for re-appointment of Mr. Keki M.
+Mistry (DIN 00008886), as Independent Director
+of the Company for a further term of 2 years, who
+would not be liable to retire by rotation in terms
+of Section 152(6) of Companies Act, 2013.
+Twenty-Sixth AGM
+3. Approval for re-appointment of Mr. Hasmukh S.
+Shah (DIN 00152195), as Independent Director
+of the Company for a further term of 2 years, who
+would not be liable to retire by rotation in terms
+of Section 152(6) of Companies Act, 2013.
+Specialty in progress
+STATUTORY REPORTS > Corporate Governance
+63
+Company for a further term of 5 years, who would
+not be liable to retire by rotation in terms of
+Section 152(6) of Companies Act, 2013.
+5. Approval for re-appointment of
+Mr. S Mohanchand Dadha (DIN 00087414),
+as Independent Director of the Company for a
+further term of 2 years, who would not be liable
+to retire by rotation in terms of Section 152(6) of
+Companies Act, 2013.
+6. Approval for increase in maximum limit of
+remuneration payable to Mr. Dilip Shanghvi,
+Managing Director, with effect from April 1, 2016
+for the remaining period of his present term
+of appointment upto March 31, 2018, and to
+consider approval for payment of the aforesaid
+remuneration as minimum remuneration. in case
+inadequacy or absence of profits
+4. Approval for re-appointment of Ms. Rekha Sethi
+(DIN 06809515), as Independent Director of the
+2017-2018
+10.45 a.m.
+September 26, 2017
+13.General Body Meetings
+Sun Pharma Laboratories Limited was a material Indian
+subsidiary company whose turnover or net worth (i.e.,
+paid-up capital and free reserves) exceeded 20% of
+the consolidated turnover or net worth respectively,
+of the Company and its subsidiaries in the immediately
+preceding accounting year. Sun Pharma laboratories
+Limited (SPLL") had its debentures listed on Whole-Sale
+Debt Segment of BSE Ltd. until March 28, 2019.
+Consequent to redemption of all the outstanding
+Debentures on March 22, 2019 along with interest
+thereon, SPLL was delisted with effect from
+March 29, 2019.
+Ms. Rekha Sethi, Independent Director of the
+Company is also Director on the Board of Sun Pharma
+Laboratories Limited.
+The financial statements including investments made
+by the unlisted subsidiaries were placed before and
+reviewed by the Audit Committee of the Company.
+The Board of Directors of the Company reviewed
+periodically, the statement of all significant transactions
+and arrangements entered into by the unlisted
+subsidiary companies.
+Copies of the Minutes of the Board Meetings of the
+unlisted subsidiary Companies were placed at the Board
+Meetings of the Company held during the year.
+The policy for determining material subsidiaries of the
+Company is available on the website of the Company and
+can be accessed at: http://www.sunpharma.com/policies.
+(i) Location and time of the last three Annual General Meetings:
+Year
+2015-2016
+Location
+Sir Sayajirao Nagargruh,
+Meeting
+Twenty-Fourth AGM
+Date
+September 17, 2016
+Time
+11.15 a.m.
+2016-2017
+Twenty-Fifth AGM
+Akota, Vadodara- 390 020, Gujarat
+Sir Sayajirao Nagargruh,
+7. Approval for increase in maximum limit of
+remuneration to Mr. Sudhir V. Valia, Whole-time
+Director, and to consider approval for payment
+of the aforesaid remuneration as minimum
+remuneration with effect from April 1, 2016
+for the remaining period of his present term
+of appointment upto March 31, 2019, in case
+inadequacy or absence.
+8. Approval for increase in maximum limit of
+remuneration to Mr. Sailesh T. Desai, Whole-time
+Director, and to consider approval for payment
+of the aforesaid remuneration as minimum
+remuneration with effect from April 1, 2016
+for the remaining period of his present term
+of appointment upto March 31, 2019, in case
+inadequacy or absence of profits.
+9. Approval for adoption of new set of Articles
+of Association of the Company containing
+regulations/provisions in line with the
+Companies Act, 2013.
+b) At the Twenty-Fifth Annual General Meeting.
+1. Approval for re-appointment of Mr. Dilip S.
+Shanghvi (DIN: 00005588) as Managing Director
+of the Company for a period of 5 (Five)
+years from the expiry of his present term of
+office i.e. with effect from April 01, 2018 to
+March 31, 2023 and approval of maximum limit of
+remuneration for the period from April 01, 2018
+to March 31, 2021
+During the year, a separate meeting of the
+independent directors was held on February 12,
+2019 inter-alia to evaluate the performance of
+non-independent directors and the board as a whole.
+• The policy on dealing with the related party
+transactions is available on the website of
+the Company and can be accessed at: http://
+www.sunpharma.com/policies.
+•
+During the year, there were pecuniary transactions
+with the Companies in which non-executive Directors
+are interested as follows: a) Transaction of receiving
+of services from Makov Associates Limited of $148.31
+Million in which Mr. Israel Makov, Non-Executive
+and Non-Independent Chairman is interested;
+b)Transactions for sale of goods to Dadha Pharma
+Distribution Private Limited of 0.03 Million in which
+Mr. S. Mohanchand Dadha, Non-Executive and
+Independent Director was interested; c) Transactions
+with MothersonSumi INfotech & Designs Limited
+for purchase of intangible assets - *56.80 Million,
+purchase of plant and equipment - *0.26 Million
+and receiving of services - *22.53 Million and with
+Anest Iwata Motherson Private Limited for purchase
+of goods - *0.06 Million and receiving of services
+-0.11 Million, in which entities Mr. Vivek Chaand
+Sehgal, Non-Executive and Independent Director
+is interested. All the transactions with entities in
+which the Independent Directors are/were interested
+constitute negligible percent of the revenue
+of the Company.
+Apart from the above and sitting fees paid to
+Non-Executive Directors, there are no pecuniary
+transactions with Non Executive directors of the
+Company or the companies in which they are
+interested which had potential conflict of interest
+with the Company.
+Certificate from a company secretary in practice
+that none of the directors on the board of the
+company have been debarred or disqualified from
+being appointed or continuing as directors of the
+Company by the Board/Ministry of Corporate Affairs
+or any such statutory authority has been annexed as
+Annexure 'B' to the Corporate Governance Report.
+Total fees for all services paid by the listed entity
+and its subsidiaries, on a consolidated basis, to the
+statutory auditor and all entities in the network firm/
+network entity of which the statutory auditor is a
+part was *7,23,29,699/- (Rupees Seven Crore Twenty
+Three Lakhs Twenty Nine Thousand Six Hundred and
+Ninety Nine only), for the year under review.
+Disclosures in relation to the Sexual Harassment of
+Women at Workplace (Prevention, Prohibition and
+Redressal) Act, 2013:
+a. number of complaints filed during the
+financial year: 3
+b. number of complaints disposed of during the
+financial year: 3
+c. number of complaints pending as on end of the
+financial year: 0
+Details of compliance and Adoption/Non Adoption of
+the non-mandatory requirements for the year ended
+March 31, 2019:
+(i) The Company complies with all the mandatory
+requirements specified under Listing Regulations.
+(ii) The Chairman of the Company is a Non-Executive
+Director. The Company has provided a separate
+office for the Chairman at the corporate office
+of the Company and the Chairman is also
+allowed reimbursement of expenses incurred in
+performance of his duties.
+(iii) The Company sends quarterly results alongwith
+summary of significant events to the shareholders
+whose e-mail IDs are available with the
+Company/Registrar.
+(iv) The auditors have issued an unmodified opinion of
+the financial statements of the Company.
+(v) The Internal Auditor reports their findings to the
+Audit Committee of the Company.
+15. Means of Communication
+•
+Website: The Company's website www.sunpharma.
+com contains a separate dedicated section
+'INVESTORS' where shareholders' information is
+available. The Annual Report for 2018-19 and Annual
+Report/Abridged Annual Report for the past years
+are also available on the website in a user friendly
+and downloadable form. Apart from this, official
+news releases, detailed presentations made to media,
+analysts etc., and the transcript of the conference
+calls are also displayed on the Company's website.
+Specialty in progress
+the Company at: http://www.sunpharma.com/policies
+12.Subsidiary Companies
+Details of the familiarisation programme of the
+independent directors are available on the website of
+•
+c) At the Twenty-Sixth Annual General Meeting.
+1. Approval for re-appointment of Mr. Sudhir V.
+Valia (DIN: 00005561) as Whole-time Director of
+the Company upon the expiry of his present term
+of office on March 31, 2019, for a further period
+of 5 (Five) years commencing from April 01, 2019
+to March 31, 2024 and remuneration for a period
+of 3(three) years commencing from April 01, 2019
+to March 31, 2022.
+2. Approval for re-appointment of Mr. Sailesh T.
+Desai (DIN: 00005443) as Whole-time Director of
+the Company upon the expiry of his present term
+of office on March 31, 2019, for a further period
+of 5 (Five) years commencing from April 01, 2019
+to March 31, 2024 and remuneration for a period
+of 3(three) years commencing from April 01, 2019
+to March 31, 2022.
+Resolution Passed Through Postal Ballot:
+No resolution was passed through postal ballot during
+the year under review.
+14. Disclosures
+.
+•
+•
+No transaction of a material nature has been entered
+into by the Company with its related parties that
+may have a potential conflict with the interests
+of the Company. Register of contracts containing
+transactions, in which directors are interested, is
+placed before the Board of Directors regularly.
+The transactions with the related parties as per Ind
+AS-24, are disclosed in Note 51 of the Notes forming
+part of the Standalone Financial Statements for the
+year ended March 31, 2019.
+There were no instances of non-compliance by
+the Company on any matters related to the capital
+markets or penalties, strictures imposed on the
+Company by the Stock Exchange or SEBI or any
+statutory authority on any matter related to capital
+markets, during the last three years.
+The Company has laid down procedures to inform
+Board members about the risk assessment and
+its minimisation, which is periodically reviewed
+to ensure that risk control is exercised by the
+management effectively.
+The Board of Directors of the Company has
+approved a Whistle Blower Policy/Vigil Mechanism
+to monitor the actions taken on complaints received
+under the said policy. This policy also outlines the
+reporting procedure and investigation mechanism
+to be followed in case an employee blows the
+whistle for any wrong-doing in the Company.
+Employees are given protection in two important
+areas - confidentiality and against retaliation. It is
+ensured that employees can raise concerns regarding
+Annual Report 2018-19
+64
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+.
+any violation or potential violation easily and free
+of any fear of retaliation, provided they have raised
+the concern in good faith. An Ombudsperson/s has
+been appointed to receive the complaints through a
+portal or email or letters who would investigate the
+complaints with an investigating committee. The final
+decision would be taken by the Ombudsperson in
+consultation with the Management and the Audit
+Committee. The Policy is expected to help to draw
+the Company's attention to unethical, inappropriate
+or incompetent conduct which has or may have
+detrimental effects either for the organisation or
+for those affected by its functions. The details of
+establishment of vigil mechanism are available on the
+website of the Company. No personnel have been
+denied access to the Audit Committee. The Board
+of Directors at their meeting held on May 28, 2019
+have amended the Whistle Blower Policy to enable
+external parties to report any matter.
+Wednesday, August 28, 2019 at 03:15 p.m.
+(both days inclusive)
+642546
+*The voting rights in respect of these shares shall remain frozen till the claim of the rightful shareholders is approved by the Company.
+% Change in
+% Change in
+Period
+Year-on-Year
+Sun Pharma
+Share Price
+Nifty
+-3.28%
+14.93%
+0
+Sun Pharma
+Relative to Nifty
+-18.21%
+Sun Pharma
+Share Price
+Sun Pharma
+BSE Sensex
+Relative to Sensex
+Year-on-Year
+-3.26%
+17.30%
+Period
+100
+200
+300
+430.50 423.45
+11356.50
+11000
+478.85
+400
+10739.35 10736.15 10714.30
+10500
+10000
+9500
+10930.45
+10386.60
+10862.55 10830.95
+10876.75
+10792.50
+Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
+(Source: BSE and NSE website)
+16.8 Share price performance relative to NIFTY and BSE Sensex based on share price on March 31, 2019.
+-20.56%
+2 Years
+-30.41%
+26.71%
+10 Years
+330.83%
+284.78%
+46.06%
+10 Years
+330.84%
+298.34%
+32.50%
+(Source: Compiled from data available on BSE and NSE website)
+Specialty in progress
+STATUTORY REPORTS > Corporate Governance
+16.9 Registrars & Transfer Agent
+Registrars & Transfer Agent
+(Share transfer and communication regarding share certificates,
+dividends and change of address)
+Link Intime India Pvt. Ltd.
+C 101, 247 Park, LBS Marg, Vikhroli West, Mumbai 400 083
+E-Mail: rnt.helpdesk@linkintime.co.in
+Tel: 022-49186000
+-5.58%
+500
+72.75%
+5 Years
+-57.12%
+2 Years
+-30.31%
+30.56%
+-60.87%
+3 Years
+-41.60%
+50.21%
+-91.81%
+3 Years
+-41.52%
+52.60%
+-94.12%
+5 Years
+66.63%
+73.38%
+-6.75%
+67.18%
+Fax: 022-49186060
+445.15
+480.35
+Closing Price of Sun Pharma's Shares on BSE
+SUN
+PHARMA
+39000
+652.20
+623.35
+38000
+BSE Sensex (Closing)
+560.55 566.65
+700
+38672.91
+600
+528.15
+38645.07
+480.15
+37606.58
+579.15
+SPIL & BSE Sensex closing price
+Share price performance in comparison to broad-based indices - BSE Sensex and NSE Nifty.
+16.7
+375.40
+457.40
+370.20
+February, 2019
+454.40
+403.30
+455.00
+403.30
+March, 2019
+482.90
+445.10
+482.95
+445.05
+(Source: BSE and NSE website)
+Annual Report 2018-19
+66
+Sun Pharmaceutical Industries Ltd.
+492.30
+37000
+425.60
+445.40
+Apr-18 May-18
+Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19
+Feb-19 Mar-19
+SPIL & NSE Nifty closing price
+NSE Nifty (Closing)
+Closing Price of Sun Pharma's Shares on NSE
+12000
+652.85
+623.25
+564.00 568.50
+580.25
+700
+11623.90
+600
+11500
+528.40
+11680.50
+0
+492.60
+32000
+33000
+500
+430.65
+36194.30
+479.25
+36000
+400
+36227.14
+36256.69
+35160.36
+36068.33
+35867.44
+35000
+35322.38 35423.48
+300
+34000
+34442.05
+200
+100
+16.10 Share Transfer System
+The share transfers which were received in physical form were processed and transferred by Registrar and Share
+Transfer Agents and the share certificates were returned within the stipulated period from the date of receipt, subject
+to the documents being valid and complete in all respects.
+16.11 Distribution of Shareholding as on March 31, 2019
+Shareholding Pattern as on March 31, 2019
+0.05
+0.40
+15.55
+0.73
+0.37
+0.16
+0.00
+54.39
+3.73
+7.80
+9.46
+Indian Promoters & Persons Acting in Concert
+SUN
+PHARMA
+Mutual Funds and UTI
+7.36
+0.01
+(%)
+Sun Pharmaceutical Industries Ltd.
+0.37
+17502708
+0.73
+372954728
+15.55
+24636
+0.00
+309682
+0.01
+1218550
+0.05
+9555342
+0.40
+2399334970
+100.00
+Annual Report 2018-19
+68
+Banks/ Financial Institutions and Insurance Companies
+Private Corporate Bodies
+Indian Public
+Directors
+Aggregate number of shareholders and the outstanding shares lying in the Unclaimed
+Suspense Account as on March 31, 2018
+No. of
+Shareholders
+No. of equity shares
+of 1/- each of Sun
+Pharma
+1101
+383997
+Number of shareholders who approached the Company for transfer of shares from the said
+Unclaimed Share Suspense Account during the period from April 1, 2018 to March 31, 2019
+Number of shareholders to whom shares were transferred from the Unclaimed Suspense
+Account during the said period.
+6
+4783
+6
+4783
+795 shareholders' shares (245334) have been transferred to IEPF on July 5, 2018 from
+Unclaimed Share Suspense account
+795
+245,334
+Aggregate number of shareholders and the outstanding shares lying in the Unclaimed Share
+Suspense Account as on March 31, 2019
+300
+133880*
+Particulars
+8914611
+The status of outstanding unclaimed shares in the Unclaimed Share Suspense Account of the Company is as under:-
+The details of Number of Stock Options outstanding as on March 31, 2019, are provided in the Annexure to the
+Board's Report and is available on the website of the Company.
+NRIs / OCBs
+Trusts
+Foreign Portfolio Investor (Corporate)
+Foreign National
+Foreign Banks and Foreign Companies
+IEPF
+Others
+16.13 Dematerialisation of Shares
+About 99.61% of the outstanding Equity shares have been dematerialised up to March 31, 2019. Trading in Shares of
+the Company is permitted only in dematerialised form.
+Liquidity:
+Your Company's equity shares are fairly liquid and are actively traded on National Stock Exchange of India Ltd., (NSE)
+and The BSE Ltd. (BSE). Relevant data for the average daily turnover for the financial year 2018-19 is given below:
+In no. of shares (in Thousands)
+In value terms (* Million)
+(Source: Compiled from data available on NSE and BSE website)
+BSE
+653.42
+322.35
+NSE
+8487.19
+4221.16
+BSE + NSE
+9140.61
+4543.51
+16.14 Outstanding GDRs/ADRs/Warrants or any Convertible instruments, conversion date and likely impact on equity:
+The Company does not have any outstanding GDRs/ADRs/Warrants/Convertible Instruments as on March 31, 2019.
+Outstanding Stock Options
+Outstanding Unclaimed Shares
+0.16
+3746747
+7.36
+H. Trusts
+I. Foreign Portfolio Investor (Corporate)
+J. Foreign National
+K. Foreign Bank and Foreign Companies
+L. IEPF
+M. Others
+Total
+No. of Folios
+Shares of face value
+*1 each/-
+Numbers
+% to total
+folios
+% to total
+Numbers
+folios
+636154
+99.00
+106004683
+G. NRIs /OCBs
+2866
+F. Directors
+D. Private Corporate Bodies
+No. of Equity Shares held
+Upto 5000
+5001 - 10000
+10001
+20000
+20001 30000
+30001 40000
+40001 50000
+50001
+100000
+100001 and above
+Total
+16.12 Category-wise Shareholding as on March 31, 2019 of Equity Shares
+Particulars
+A. Indian Promoters and Persons acting in Concert
+B. Mutual Funds and UTI
+C. Banks/ Financial Institutions and Insurance Companies
+E. Indian Public
+Specialty in progress
+0.45
+0.85
+0.10
+2209807739
+92.10
+100.00
+2399334970
+100.00
+No. of Shares
+Percentage
+1304855381
+54.39
+226963122
+9.46
+187209570
+7.80
+89429151
+3.73
+176650742
+680
+20362908
+0.76
+0.04
+1961
+0.31
+25319656
+1.06
+359
+0.05
+8921296
+0.37
+167
+0.03
+5900034
+0.24
+106
+0.02
+4870180
+0.20
+253
+18148474
+4.42
+One of the significant enablers of ensuring employee
+wellbeing is active engagement. Several two-way
+communication platforms are in place for employees to
+express themselves, know more about the organisation as
+well as raise queries and concerns. Employee feedback is
+promptly solicited by us at Sun Pharma.
+SUN
+Decitabine: An enabler to oncology therapy, it is sold
+at a significantly lower price compared to innovator's
+product
+Rilutor (Riluzole): Used for treating Amyotrophic
+Lateral Sclerosis (a life-threatening disease), this
+product is distributed free of cost to all patients
+•
+PHARMA
+SUN
+Sun Pharmaceutical Industries Ltd.
+78
+Annual Report 2018-19
+Some of our products that have broken the affordability and
+accessibility barrier include:
+We produce and deliver affordable, high quality, WHO
+pre-qualified, generic Antiretroviral products to various
+governments and NGOs around the world to fight HIV/
+AIDS. Other than making drugs affordable in order
+to improve access, we also provide some life-saving
+medicines free of cost.
+When disease strikes, it doesn't differentiate between
+the wealthy and the needy. The research capabilities and
+scientific advancements have resulted in finding treatments
+for majority of diseases, but the price of medication makes
+it beyond the means of majority of people. As one of the
+leaders in the generics segment of the global pharmaceutical
+industry, our endeavour is to make good health, affordable
+and accessible for all.
+Empowering Communities
+Affordable Access
+We are continuously and consistently raising the bar on our
+commitment to the best standards of governance. We also
+actively solicit feedback from all our stakeholders on our
+business conduct and keep our code and policies updated.
+In the reporting year, we received 1 stakeholder complaint,
+which was resolved satisfactorily.
+At Sun Pharma, means are as important as the end.
+We enable our employees to thrive through fair means
+detailed in our Code of Conduct. Along with the code,
+various policies on significant subjects are designed to cover
+all areas of operations.
+Code of Conduct & Policy
+Corporate Governance & Ethics Committee
+Nomination & Remuneration Committee
+Stakeholders Relationship Committee
+Risk Management Committee
+Audit Committee
+Core areas of governance are overseen by dedicated board
+committees to streamline the governance process. The
+committees are:
+Board Committees
+Our board of directors bring forth an international
+perspective with global best practices and rich experience
+combined with the strength of entrepreneurship. The
+leadership drives sustainable growth consistent with integrity
+and accountability.
+Leadership
+To ensure that these principles translate into consistent
+practice, the below enablers lead us towards high standards
+of business conduct.
+Principle 2: Product Life Cycle Sustainability
+Being in the healthcare industry, our primary purpose
+is to meet the health-related needs of the patients.
+Equally important though is the well-being of our ecosystem
+- the society and the environment. So, we not only work to
+make our products more affordable and accessible, we also
+take steps to serve the community and minimise our impact
+on the environment.
+. Delegation of responsibility across all facets of
+operations
+While we continue to make our products accessible and
+affordable to more people, we also consistently work to
+uplift our neighbouring communities. By sourcing local labour
+and material, we empower the community surrounding
+our manufacturing plants. This not only gives them a
+bigger opportunity to work in, but also helps us reduce the
+carbon footprint.
+For more details regarding our community initiatives, please
+refer Principle 8 of this report.
+29/05/2012
+00005588
+01/03/1993
+00005561
+31/01/1994
+00005443
+25/03/1999
+00179072
+14/02/2017
+06809515
+13/02/2014
+We also invest in upskilling local talent and upgrading local
+suppliers. Quality of our products is not compromised as
+we raise the local capabilities to our benchmark standards.
+Credits are also advanced where necessary to enhance
+the capacity of the suppliers. Many of our facilities have
+identified and encouraged various such local vendors.
+00291126
+445,793,100
+3,211,051 KL
+Water usage:
+Formulations: 21,491 Million units
+API: 3,496 ton
+Production:
+Calculating our environmental performance per product
+poses unique challenges, owing to a diverse product portfolio
+and complex production processes. We, therefore, monitor
+and manage our total annual water and energy performance
+vis-à-vis our total annual production.
+For more details regarding our environment initiatives, please
+refer Principle 6 of this report.
+Our initiatives include manufacturing products safely and in
+an environmentally sustainable manner, cultivating a culture
+of conservation and aiming for the highest international
+standards in our operations.
+Nature sustains life; it must be nurtured for a better quality
+of life. At Sun Pharma, we are fully committed to achieving
+excellence in Environment, Health & Safety (EHS) and conduct
+our activities in the most responsible manner. Our EHS policy
+provides for the creation of a safe and healthy workplace, and
+a clean environment for employees and the community.
+Enriching Environment
+14/11/2017
+05299764
+• Consistent value systems
+High levels of transparency
+Has the company carried out independent audit
+/ evaluation of the working of this policy by an
+internal or external agency?
+Does the Company have a grievance redressal
+mechanism related to the policy / policies to
+address stakeholders' grievances related to the
+policy/policies?
+10
+9
+77
+STATUTORY REPORTS > Business Responsibility Report
+Specialty in progress
+Yes
+Yes
+Yes
+00004612
+3. Governance related to BR
+25/05/2018
+Practicing Company Secretaries
+Alpeshkumar J. Panchal
+Partner
+Mem No. 49008
+C. P. No. 20120
+Date: May 28, 2019
+Place: Mumbai.
+Annual Report 2018-19
+72
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+For KJB & CO LLP,
+Accountability
+1
+Indicate the frequency with which the Board of
+Directors, Committee of the Board or CEO assess
+the BR performance of the Company. Within 3
+months, 3-6 months, Annually, More than 1 year
+Does the Company publish a BR or a
+Sustainability Report?
+•
+Comprehensive policies are in place to ensure transparency
+and accountability. All employees, from the leadership
+to the shop floor, are woven in a culture of ethics and
+integrity. This has resulted in an organisation which is not
+only responsible to the shareholders, but also to other
+stakeholders like community and environment.
+Our corporate governance philosophy values the
+following principles:
+Principle 1: Ethics, Transparency and Accountability
+Good governance is at the heart of sustained growth of an
+organisation. At Sun Pharma, our governance standards are
+guided by our vision and values.
+The BR report for FY19 is a part of the annual report and can also be accessed
+through the link: http://www.sunpharma.com/pdflist/all-documents. It is
+published annually.
+Annual
+It will be done in due course.
+P9
+Yes
+Yes
+Yes
+Yes
+Yes
+2
+Yes
+Yes
+Yes
+P8
+P7
+P6
+P5
+P4
+P3
+P2
+P1
+What is the hyperlink for viewing this report? How
+frequently it is published?
+Yes
+Independent Auditor's Report on compliance with the conditions of Corporate Governance as per provisions
+of Chapter IV of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
+Regulations, 2015, as amended
+Gautam Bhailal Doshi
+Vivek Chaand Sehgal
+Mr. Ashok I. Bhuta, Compliance
+Officer
+Link Intime India Private Limited,
+Contact Details
+Unit: Sun Pharmaceutical Industries Limited,
+C 101, 247 Park, L.B.S. Marg, Vikhroli West,
+Mumbai (INDIA) - 400083
+Tel. No.: +91 22 49186270 / +91 22 49186000
+Fax No.: +91 22 49186060
+E-Mail: rnt.helpdesk@linkintime.co.in/ sunpharma@linkintime.co.in
+Sun Pharmaceutical Industries Limited
+Sun House, Plot No. 201 B/1,
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324, Direct no. (+91 22) 4324 2230
+Email: secretarial@sunpharma.com
+Sun Pharmaceutical Industries Limited
+(for the purpose of IEPF)
+Sun House, Plot No. 201 B/1,
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324, Direct no. (+91 22) 4324 2778
+Email: nimish.desai@sunpharma.com
+Sun Pharmaceutical Industries Limited
+Sun House, Plot No. 201 B/1,
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324, Direct no. (+91 22) 4324 2231
+Email: secretarial@sunpharma.com
+Annual Report 2018-19
+70
+Sun Pharmaceutical Industries Ltd.
+16.18 List of all credit ratings
+Rating Agency
+ICRA Limited
+PHARMA
+Instrument Type
+Bank Facility (Short-Term Scale)
+Long-Term/Short-Term Borrowing
+Commercial Paper
+d) Nodal Officer
+Institutional Investors:
+STATUTORY REPORTS > Corporate Governance
+16.15 Disclosure of commodity price risk or foreign exchange risk and commodity hedging activities
+The Company is exposed to foreign exchange risks emanating from our business, assets and liabilities denominated in
+foreign currency. In order to hedge this risk, the Company proactively uses hedging instruments e.g. forward contracts,
+options and other simple derivatives from time to time. The Company does not have any significant exposure on
+commodities directly.
+16.16 Plant locations as on March 31, 2019:
+1. Survey No.214 and 20, Govt. Industrial Area, Phase-II, Piparia, Silvassa - 396 230, U.T. of D & NH.
+2. Survey no. 259/15, Dadra - 396191, U.T. of D. & NH.
+3. Plot No.24/2 and No.25, GIDC, Phase- IV, Panoli - 395 116, Dist. Bharuch, Gujarat.
+4. Plot No. 4708, GIDC, Ankleshwar - 393 002, Gujarat.
+5. Halol-Baroda Highway, Near Anand Kendra, Halol, Dist. Panchmahal- 389350 Gujarat.
+6. Plot No. 817/A, Karkhadi - 391 450, Taluka: Padra, Distt. Vadodara, Gujarat.
+7. Plot No. Z/15, Sez-1, Po. Dahej, Taluko vagra, Dist. Bharuch, Gujarat.
+Mr. Nimish Desai
+8. A-7 & A-8, MIDC Industrial Area, Ahmednagar - 414 111, Maharashtra.
+10. Plot No. 1341 & 1342 EPIP-1, Hill Top Industrial Area, Village Bhatolikalan (Barotiwala), Baddi - 174103,
+Himachal Pradesh
+11. Village & PO Ganguwala, Tehsil Paonta Sahib-173025, Distt. Sirmour, Himachal Pradesh
+12. Village Batamandi, Tehsil Paonta Sahib-173025, Distt. Sirmour, Himachal Pradesh.
+13. Village Toansa, P.O. Railmajra Distt. Nawansahar-144533 (Punjab)
+14. A-41, Industrial Area, Phase VIII-A, Sahibzada Ajit Singh Nagar, Mohali-160071 (Punjab)
+15. Plot No. K - 5,6,7, Ghirongi Industrial Area, Malanpur, Dist. Bhind, Madhya Pradesh
+16. Pharma Manufacturing Industrial Area 3 A.B. Road, Dewas-455001, Madhya Pradesh
+17. Sathammai Village, Karunkuzhi Post, Maduranthakam T.K. Kanchipuram Dist. Tamil Nadu - 603 303.
+18. Sy. No. 16, Ekarajapura, Hoskote, Bengaluru (Karnataka)
+16.17 Investor Correspondence
+Particulars
+a) Registrars & Transfer Agent:
+b) Individual Investors & Queries
+Related to Shares/Dividend, etc.
+Secretarial Department
+c)
+9. Plot No. B-2 Madkaim Industrial Estate, Ponda, Goa
+8.
+CRISIL Limited
+Rating
+71
+To,
+The Members of
+Sun Pharmaceutical Industries Limited
+Sun House, Plot No. 201 B/1,
+Western Express Highway,
+Goregoan (E), Mumbai 400063
+Maharashtra.
+We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of the Sun
+Pharmaceutical Industries Limited having CIN L24230GJ1993PLC019050 and having registered office at SPARC, Tandalja,
+Vadodara Gujarat - 390012 (hereinafter referred to as 'the Company'), produced before us by the Company for the purpose
+of issuing this certificate, in accordance with Regulation 34(3) read with Schedule V para - C sub clause 10(i) of the Securities
+Exchange Board of India ( Listing Obligation and Disclosure Requirements) Regulations, 2015.
+In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
+[DIN] status at the MCA portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company
+& its officers, we hereby certify that none of the Directors on the Board of Directors of the Company as sated below for
+the financial year ending on 31st March 2019 have been debarred or disqualified from being appointed or continuing as
+Directors of the Companies by the Securities Exchange and Board of India, Ministry of Corporate affairs or any such other
+Statutory Authority.
+Sr. No Name of the Directors
+Director Identification
+Number (DIN)
+(pursuant to Regulation 34(3) and schedule V para C clause (10) (i) of the SEBI
+(Listing Obligation Disclosure requirement) Regulation, 2015)
+Date of Appointment
+in the Company
+Israel Makov
+2.
+Dilip Shantilal Shanghvi
+3. Sudhir Vrundavandas Valia
+4.
+Sailesh Trambaklal Desai
+5.
+Kalyanasundaram Subramanian
+6.
+Rekha Sethi
+7.
+1.
+Bank Facility (Short-Term)
+Bank Facility (Long-Term)
+Commercial Paper
+CERTIFICATE
+STATUTORY REPORTS > Corporate Governance
+Remarks
+SUN
+PHARMA
+[ICRA] A1+
+No revisions in credit rating during the
+[ICRA] AAA (Stable)/ [ICRA] A1+ financial year 2018-19
+[ICRA] A1+
+CRISIL A1+
+CRISIL AAA/ Stable
+CRISIL A1+
+No revisions in credit rating during the
+financial year 2018-19
+ANNEXURE 'B' TO CORPORATE GOVERNANCE REPORT
+For and on behalf of the Board
+Dilip S. Shanghvi
+Managing Director
+Sudhir V. Valia
+Whole-time Director
+Sailesh T. Desai
+Whole-time Director
+Date: May 28, 2019
+ANNEXURE 'A' TO CORPORATE GOVERNANCE REPORT
+DECLARATION OF COMPLIANCE WITH CODE OF CONDUCT FOR THE YEAR ENDED MARCH 31, 2019
+I, Dilip S. Shanghvi, Managing Director of Sun Pharmaceutical Industries Limited ("the Company") hereby declare that,
+to the best of my information, all the Board Members and Senior Management Personnel of the Company have affirmed
+their compliance and undertaken to continue to comply with the Code of Conduct laid down by the Board of Directors
+of the Company.
+For Sun Pharmaceutical Industries Ltd.,
+Date: May 28, 2019
+Specialty in progress
+Dilip S. Shanghvi
+Managing Director
+Place: Mumbai
+The Members of
+Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the
+management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate
+is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the
+management has conducted the affairs of the Company.
+Sun House, Plot No. 201 B/1,
+Section A: General Information About the Company
+Medical advancements have enabled people to live longer.
+According to projections, there will be more than 10
+Billion people living on Earth by the year 2100. The rise in
+population would result in more demand of supplies, and
+subsequently more usage of natural resources and energy.
+If energy continues to be developed by finite fossil fuels, and
+the natural resources keep depleting at the pace they are, the
+environmental damage will drive us to a point of no return.
+That is why sustainable development is so important and
+the governments as well as the corporate world would have
+to focus on their responsibilities. As part of the Sustainable
+Development Goals (SDGs), world leaders have promised
+to end poverty, reduce inequalities, and tackle climate
+change by 2030.
+Overview
+75
+STATUTORY REPORTS > Business Responsibility Report
+Specialty in progress
+Sudhir V. Valia
+Whole-time Director
+Regards,
+This Business Responsibility Report (BRR) articulates our
+commitment to the community, environment and all our
+stakeholders. We welcome your feedback on this report
+as your insights will help us enhance our triple bottom
+line performance.
+The key tenets of our policy include waste management,
+conservation measures, increasing efficiency, green
+energy and implementing Clean Development Mechanism
+(CDM) projects at our facilities, reducing our impact on
+the environment. Seventeen of our units are Zero Liquid
+Discharge (ZLD) facilities, while 5 are in the process of
+obtaining the status. In FY19, we also generated around 2.05
+Million kWh of clean energy.
+Technology-based differentiation is the hallmark of our
+product offerings and our environmental initiatives.
+We continue to invest in innovations based on an
+all-inclusive EHS (Environment, Health and Safety) policy,
+which we have institutionalised to administer and guide
+our operations.
+1234567
+Environment Wellness
+While making medicines which are more accessible and
+affordable to all is our role, we push the envelope further
+by enhancing our efforts to mainstream the socially
+marginalised. Healthcare, education, infrastructure & rural
+development, safe drinking water & sanitation, environment
+conservation and disaster relief are some of our key
+priorities enunciated in our comprehensive Corporate Social
+Responsibility (CSR) Policy.
+Community Wellness
+We continue to invest in their professional growth and to
+inculcate the value of responsible growth in them. So, they
+understand that their progress is linked with providing
+innovative solutions to unmet medical needs, community's
+upliftment and environment's protection. The reporting
+year saw the safety and skill up-gradation training of
+approximately 41% of our employees. Of our total women
+employees, 34% underwent this training.
+Our most valuable asset is our multi-cultural team.
+Diverse cultural perspectives inspire creativity and drive
+innovation. With a global strength of 32,000+ employees, we
+invest our energy in engaging, nurturing and motivating them
+to grow. Our comprehensive Human Resources (HR) Policy
+covers the whole gamut of employee management, from
+recruitment to retention.
+Employee Wellness
+While nurturing nature and participating actively in social
+causes is as old as our business itself, six years ago, we
+synthesised all these elements in one cohesive model based
+on the National Voluntary Guidelines (NVG). It helped us
+in focussing our efforts towards all our stakeholders, be it
+patients, community, planet, shareholders, employees, etc.
+As we move ahead on our sustainability journey, this year
+saw the development of some promising trends in all the
+three areas of Employee Wellness, Community Wellness and
+Environment Wellness.
+Being the world's 4th largest specialty generic
+pharmaceutical company and a trusted brand worldwide, we
+believe that our key responsibility is to make our medicines
+affordable and accessible to an ever-increasing population to
+provide for their unmet needs. We achieve these objectives
+by manufacturing our quality products safely, and in an
+environmentally responsible manner.
+People globally depend on pharmaceutical industry for
+their health. Our societal welfare, economic or otherwise, is
+built on the foundations of having a healthy and productive
+population. The pivotal significance of pharmaceutical
+products for the society makes the industry highly vulnerable
+to stakeholder expectations. Therefore, business models
+must be willing to manage the emerging expectations of a
+wider set of stakeholders and address evolving priorities
+across the triple bottom lines of economic, environmental
+and social segments.
+Message from the Director's Desk
+Continuous Learning
+b. Details of the BR head:
+We continue to undertake various local level community
+programmes based on the needs of the residents. In FY19,
+we also supported Government initiatives, like helping
+build 216 individual household toilets with an investment
+of *4.36 Million to achieve Government's objective of zero
+open defecation.
+1
+8
+Name of the Company
+As below
+Cip-Isotretinoin | Levulan Kerastick | EET (ARV)
+'Pharmaceuticals' is the primary reportable segment.
+April 1, 2018 to March 31, 2019
+secretarial@sunpharma.com
+SPARC, Tandalja, Vadodara - 390 012, Gujarat
+http://www.sunpharma.com/
+Sun Pharmaceutical Industries Limited
+L24230GJ1993PLC019050
+This Business Responsibility Report is our demonstration
+of the triple bottom line approach covering the social,
+environmental and economic aspects of the business.
+In accordance with SEBI's proposed index and the nine
+principles of the Government of India's 'National Voluntary
+Guidelines on Social, Environmental and Economic
+Responsibilities of Business', the report enunciates our plans
+and actions to build our business responsibly.
+Being a global pharma leader with 32,000+ employees
+worldwide, 40+ manufacturing sites, 100+ markets served
+and a portfolio of 2,000+ marketed products, we at Sun
+Pharma strongly believe that business and responsibility
+go hand-in-hand. Lasting value can only be created, if the
+right balance between the triple bottom lines of economic,
+environmental and social is achieved.
+Markets served by the Company - Local / State /
+National / International
+Corporate Identity Number (CIN) of the Company
+2. Number of National Locations
+activity is undertaken by the Company
+10
+Total number of locations where business
+9
+List three key products/services that the Company
+manufactures / provides (as in balance sheet)
+(industrial activity code-wise)
+Sector(s) that the Company is engaged in
+Financial Year reported
+E-mail id
+Website
+Registered Address
+Sun Pharmaceutical Industries Limited
+# DIN Number (if applicable)
+2
+# Name
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+All the policies have been formulated in consultation with the Management of the
+Company and is approved by the Board.
+All the policies are compliant with respective principles of NVG guidelines.
+All the policies have been approved by the Board and have been signed by the
+Managing Director.
+Yes
+The Board has appointed Mr. Sudhir Valia, Whole-time Director - Sun Pharma, to
+oversee policy implementation.
+6
+7
+Indicate the link for the policy to be viewed online?
+Has the policy been formally communicated to all
+relevant internal and external stakeholders?
+8
+Does the company have in-house structure to
+implement the policy / policies?
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Copies will be made available on receipt of written request from shareholders.
+The policies have been formally communicated to internal stakeholders. The
+external stakeholders will be communicated in due course.
+P9
+P8
+P7
+3
+# Designation
+4
+# Telephone number
+5
+# e-mail id
+Mr. Sudhir V. Valia
+Whole-time Director
+Mr. Sudhir V. Valia, Whole-time Director of Sun Pharma, oversees the BR
+implementation. The Company does not have a BR head as of now.
+2. Principle-wise (as per NVGs) BR policy/policies (Reply in Y/N)
+1
+Do you have a policy or policies for…..
+2
+Has the policy been formulated in consultation
+with the relevant stakeholders?
+3
+4
+5
+Does the policy conform to any national /
+international standards? If yes, specify? (50 words)
+Has the policy been approved by the Board? If yes,
+has it been signed by the MD / owner / CEO /
+appropriate Board Director?
+Does the company have a specified committee
+of the Board / Director / Official to oversee the
+implementation of the policy?
+P1
+P2
+P3
+P4
+P5
+P6
+US, South Africa, Romania, Japan, and Canada
+Facilities: Halol, Baska, Panoli, Karkhadi, Ankleshwar and Dahej (all in Gujarat),
+Baddi and Paonta Sahib (both in Himachal Pradesh), Mohali and Toansa (both
+in Punjab), Malanpur and Dewas (both in Madhya Pradesh), Ahmednagar
+(Maharashtra), Maduranthakam (Tamil Nadu), Dadra, Silvassa, Jammu (J&K),
+Sikkim, Goa, and Guwahati (Assam)
+1. Number of International Locations
+(Provide details of major 5)
+Vadodara (Gujarat) and Mumbai (Maharashtra) respectively
+8. Based on the procedures performed by us, as referred in
+paragraph 7 above, and according to the information and
+explanations given to us, we are of the opinion that the
+Company has complied with the conditions of Corporate
+Governance as specified in the Listing Regulations, as
+applicable for the year ended March 31, 2019, referred to
+in paragraph 1 above.
+Other matters and Restriction on Use
+9. This report is neither an assurance as to the future
+viability of the Company nor the efficiency or
+effectiveness with which the management has conducted
+the affairs of the Company.
+10. This report is addressed to and provided to the members
+of the Company solely for the purpose of enabling it to
+comply with its obligations under the Listing Regulations
+with reference to compliance with the relevant
+regulations of Corporate Governance and should not
+be used by any other person or for any other purpose.
+Accordingly, we do not accept or assume any liability
+or any duty of care or for any other purpose or to any
+other party to whom it is shown or into whose hands it
+may come without our prior consent in writing. We have
+no responsibility to update this report for events and
+circumstances occurring after the date of this report.
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+per Paul Alvares
+Partner
+Membership Number: 105754
+UDIN: 19105754AAAABB3481
+Date: May 28, 2019
+Opinion
+Place: Mumbai.
+74
+Sun Pharmaceutical Industries Ltd.
+Business Responsibility Report
+10,984
+Energy Usage:
+Electricity (kWh)
+Gas (in '000 nm3)
+Furnace Oil (MT)
+8,822
+HSD (L)
+Briquette (MT)
+R&D Centres: Vadodara (Gujarat), Mumbai (Maharashtra), and Gurgaon (Haryana)
+Registered and Corporate offices:
+1,398,400
+65,393
+The above-mentioned procedures include examining
+evidence supporting the particulars in the Corporate
+Governance Report on a test basis. Further, our scope of
+work under this report did not involve us performing audit
+tests for the purposes of expressing an opinion on the
+fairness or accuracy of any of the financial information or the
+financial statements of the Company taken as a whole.
+73
+Western Express Highway,
+Goregoan (E), Mumbai 400063
+Maharashtra.
+1. The Corporate Governance Report prepared by Sun
+Pharmaceutical Industries Limited (hereinafter the
+"Company"), contains details as specified in regulations
+17 to 27, clauses (b) to (i) of sub - regulation (2) of
+regulation 46 and para C, D, and E of Schedule V of
+the Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015, as amended ("the Listing Regulations") ('Applicable
+criteria') for the year ended March 31, 2019 as
+required by the Company for annual submission to the
+Stock exchange.
+Management's Responsibility
+2. The preparation of the Corporate Governance Report is
+the responsibility of the Management of the Company
+including the preparation and maintenance of all relevant
+supporting records and documents. This responsibility
+also includes the design, implementation and
+maintenance of internal control relevant to the
+preparation and presentation of the Corporate
+Governance Report.
+3. The Management along with the Board of Directors
+are also responsible for ensuring that the Company
+complies with the conditions of Corporate Governance
+as stipulated in the Listing Regulations, issued by the
+Securities and Exchange Board of India.
+Auditor's Responsibility
+4. Pursuant to the requirements of the Listing Regulations,
+our responsibility is to provide a reasonable assurance
+in the form of an opinion whether, the Company has
+complied with conditions of Corporate Governance as
+specified in the Listing Regulations.
+5. We conducted our examination of the Corporate
+Governance Report in accordance with the Guidance
+Note on Reports or Certificates for Special Purposes
+and the Guidance Note on Certification of Corporate
+Governance, both issued by the Institute of Chartered
+Accountants of India ("ICAI"). The Guidance Note on
+Reports or Certificates for Special Purposes requires
+that we comply with the ethical requirements of the
+Code of Ethics issued by the Institute of Chartered
+Accountants of India.
+6. We have complied with the relevant applicable
+requirements of the Standard on Quality Control (SQC)
+1, Quality Control for Firms that Perform Audits and
+Reviews of Historical Financial Information, and Other
+Assurance and Related Services Engagements.
+7. The procedures selected depend on the auditor's
+judgement, including the assessment of the risks
+associated in compliance of the Corporate Governance
+Report with the applicable criteria. Summary of key
+procedures performed include:
+i. Read and understood the information prepared
+by the Company and included in its Corporate
+Governance Report;
+viii. Performed necessary inquiries with the management
+and also obtained necessary specific representations
+from management.
+ii. Obtained and verified that the composition of the
+Board of Directors with respect to executive and
+non-executive directors has been met throughout the
+reporting period;
+iv. Obtained and read the minutes of the following
+meetings held from April 1, 2018 to March 31, 2019:
+(a) Board of Directors meetings;
+(b) Audit Committee meetings;
+(c) Annual General Meeting (AGM);
+(d) Nomination and Remuneration
+Committee meetings;
+(e) Stakeholders Relationship Committee meetings;
+(f) Risk Management Committee meetings;
+(g) Committee of Directors (Allotment) meetings;
+(h) Corporate Social Responsibility
+Committee meetings; and
+(i) Independent Directors' meeting.
+v. Obtained necessary declarations from directors
+of the Company;
+vi. Obtained and read the policy adopted by the
+Company for related party transactions;
+vii. Obtained the schedule of related party transactions
+during the year and balances at the year-end.
+Obtained and read the minutes of the audit
+committee meeting where in such related party
+transactions have been pre-approved prior by the
+audit committee;
+Specialty in progress
+STATUTORY REPORTS > Corporate Governance
+iii. Obtained and read the Register of Directors as
+on March 31, 2019 and verified that atleast one
+woman director was on the Board of Directors
+throughout the year;
+Principle 3: Employee Well-being
+Annual Report 2018-19
+Our all-encompassing HR policy covers all the aspects,
+right from recruitment to retention leading to an overall
+development of our employees. Based on the feedback
+received, the HR policy keeps evolving. The key tenets of
+the policy are:
+Section C: Other Details
+Refer Principle 8 - 'Equitable Development'
+Since the average net profit for the last three years is negative, the Company is
+not required to allocate any amount towards CSR. However, it has voluntarily
+spent *39.36 Million on CSR activities for the year.
+97,833 Million (standalone)
+2,399 Million
+List of activities in which the above expenditure
+has been incurred
+5
+Total Spending on Corporate Social Responsibility
+(CSR) as percentage of profit after tax (%)
+4
+Total profit after taxes (₹)
+Employees are core assets and thereby vital to the success
+of any organisation. At Sun Pharma, we empower our
+employees by providing them a safe workplace, progressive
+policies, growth opportunities and learning options,
+thereby creating an environment where their personal and
+professional goals merge to deliver exceptional outcomes.
+One of the significant enablers of our global workforce is
+active engagement. We provide them with platforms where
+they can express themselves resulting in transparency,
+camaraderie and feedback. By addressing their concerns,
+people managers add the power of the employees to the
+inherent strength of the company. This results in a motivated
+workforce, lesser attrition, enhanced productivity and
+better quality.
+1
+3
+2
+Paid up Capital (₹)
+1
+PHARMA
+SUN
+Section B: Financial Details of the Company
+Sun Pharmaceutical Industries Ltd.
+76
+Annual Report 2018-19
+Over 100 markets served across 6 continents - Asia,
+North America, South America, Europe, Africa, and Australia
+Pan-India Distribution Network
+Total Turnover (*)
+Does the Company have any Subsidiary
+Company/Companies?
+8,166 Million (standalone)
+Do the Subsidiary Company / Companies
+participate in the BR initiatives of the parent
+company? If yes, then indicate the number of such
+subsidiary company(s)
+Employee Engagement
+# Designation
+3
+# Name
+2
+# DIN Number
+1
+2
+1 a. Details of the Director / Directors responsible for implementation of the BR (Business Responsibility) policy / policies:
+Section D: BR Information
+The Company has not instituted any process to monitor / verify whether any
+other entity / entities (e.g. suppliers, distributors etc.) that the Company does
+business with, participate in the BR initiatives of the Company.
+Do any other entity / entities (e.g. suppliers,
+distributors etc.) that the Company does business
+with, participate in the BR initiatives of the
+Company? If yes, then indicate the percentage
+of such entity/entities? [Less than 30%, 30-
+60%, More than 60%]
+There is no direct participation.
+5561
+3
+Knowledge is a key differentiator in our business.
+Continuous learning is thus imperative to remain ahead in
+the league. We offer various development opportunities to
+our employees which are customised as per the need of the
+individuals and their functions.
+We have an in-house competency development mechanism
+as well as support external capability enhancement.
+Equality of Opportunity
+At Sun Pharma, merit is the only prerequisite to growth.
+We celebrate diversity and discourage bias, discrimination
+and harassment. We nurture diversity by encouraging a fine
+amalgam of talent from different age groups, genders, castes,
+domains, religions, cultural backgrounds etc.
+As of March 31, 2019, we had a total workforce of
+32,000+ people in India, including permanent, temporary
+and contractual employees, of which 1,419 were women
+employees and 13 were employees with disabilities.
+Freedom of Association
+We have always encouraged employees to communicate,
+whether individually or by forming an association. Union of
+employees that pursue the interests of its members, keeping
+in mind the overall business environment, is given its
+due importance.
+At present, there is a management-recognised employee
+association, which covers approximately 4% of our
+employee membership.
+Specialty in progress
+Yes
+(b) In our opinion, proper books of account as required
+by law have been kept by the Company so far as it
+appears from our examination of those books;
+(c) The Balance Sheet, the Statement of Profit and Loss
+including the Statement of Other Comprehensive
+Income, the Cash Flow Statement and Statement of
+Changes in Equity dealt with by this Report are in
+agreement with the books of account;
+(d) In our opinion, the aforesaid standalone Ind AS
+financial statements comply with the Accounting
+Standards specified under Section 133 of the Act,
+read with Companies (Indian Accounting Standards)
+Rules, 2015, as amended;
+PHARMA
+SUN
+1. As required by the Companies (Auditor's Report) Order,
+2016 ("the Order"), issued by the Central Government
+of India in terms of sub-section (11) of section 143 of
+the Act, we give in the "Annexure 1" a statement on the
+matters specified in paragraphs 3 and 4 of the Order.
+88
+Annual Report 2018-19
+2. As required by Section 143(3) of the Act, we report that:
+(a) We have sought and obtained all the information and
+explanations which to the best of our knowledge and
+belief were necessary for the purposes of our audit;
+REPORT ON OTHER LEGAL AND REGULATORY
+REQUIREMENTS
+(e) On the basis of the written representations received
+from the directors as on March 31, 2019 taken
+on record by the Board of Directors, none of the
+directors is disqualified as on March 31, 2019 from
+being appointed as a director in terms of Section 164
+(2) of the Act;
+Sun Pharmaceutical Industries Ltd.
+(f) With respect to the adequacy of the internal financial
+controls over financial reporting of the Company
+with reference to these standalone Ind AS financial
+statements and the operating effectiveness of such
+controls, refer to our separate report in "Annexure 2"
+to this report;
+As fully described in Note 56(11) of the standalone Ind
+AS financial statements, the Company has prepared these
+standalone Ind AS financial statements to give effect to
+the Scheme of arrangement of demerger of the specified
+undertaking of Sun Pharma Global FZE into the Company
+with an appointed date of April 01, 2017. We did not audit
+total assets of 26,758.1 million as at March 31, 2018 and
+total revenues of 13,388.1 million for the year ended
+March 31, 2018, included in the accompanying standalone
+Ind AS financial statements (as part of previous year ended
+March 31, 2018) in respect of the specified undertaking
+of Sun Pharma Global FZE whose financial statements and
+other information has been audited by other auditor and
+whose report has been furnished to us. Our opinion, in so
+far as it relates to the affairs of the specified undertaking is
+based solely on the report of other auditor. Our opinion is
+not modified in respect of this matter.
+(h) With respect to the other matters to be included
+in the Auditor's Report in accordance with Rule
+11 of the Companies (Audit and Auditors) Rules,
+2014, as amended in our opinion and to the
+best of our information and according to the
+explanations given to us:
+i. The Company has disclosed the impact of pending
+litigations on its financial position in its standalone
+Ind AS financial statements - Refer Note 39 to the
+standalone Ind AS financial statements;
+ii. The Company has made provision, as required
+under the applicable law or accounting standards,
+for material foreseeable losses, if any, on
+long-term contracts including derivative contracts
+- Refer Note 25 and 29 to the standalone Ind AS
+financial statements;
+iii. There has been no delay in transferring amounts,
+required to be transferred, to the Investor
+Education and Protection Fund by the Company,
+except a sum of 3.2 Million, which is held in
+abeyance due to pending legal cases.
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No.: 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Place of Signature: Mumbai
+Date: May 28, 2019
+Specialty in progress
+Evaluated the design and tested the operating effectiveness of
+controls in respect of the identification and evaluation of tax
+litigations/deferred tax and the recording and re-assessment of
+the related liabilities/assets and provisions and disclosures.
+Engaged tax specialists, to evaluate management's assessment
+of the outcome of these litigations.
+(g) In our opinion, the managerial remuneration for the
+year ended March 31, 2019 has been paid / provided
+by the Company to its directors in accordance
+with the provisions of section 197 read with
+Schedule V to the Act;
+OTHER MATTER
+Our specialists considered legal precedence and other rulings in
+evaluating management's position on these tax litigations.
+We also provide those charged with governance with a
+statement that we have complied with relevant ethical
+requirements regarding independence and to communicate
+with them all relationships and other matters that may
+reasonably be thought to bear on our independence and
+where applicable, related safeguards.
+Increase in condensate recovery
+Specialty in progress
+STATUTORY REPORTS > Business Responsibility Report
+81
+.
+.
+•
+.
+Heat recovery from flue gases used to generate hot
+water
+Replacement of cooling tower and pump to save
+power
+Installation of heat pump to save steam
+Reduction in ceiling height to save power and fuel
+Motion sensors (electricity) installed to reduce energy
+consumption in close areas
+Greener Investments
+We are committed to generate more green energy to
+reduce our dependence on fossil fuels. Our investments,
+especially in the area of wind energy, are testament of our
+conviction. In FY19, we generated around 2.05 Million kWh
+of clean energy.
+Carbon Emission
+Various projects are implemented at our facilities by
+switching from 'conventional' furnace oil / light diesel oil
+boilers to 'eco-efficient' biomass briquette-based boilers.
+It not only restricts the emissions of our operations, but also
+achieves two more objectives:
+.
+Boilers fitted with economiser coils which help in
+preheating boiler feed water, which in turn reduces
+the fuel consumption
+•
+Installation of energy efficient equipment, such as
+Coating Dry Scrubber, Variable Speed Drive (VSD) air
+compressor and Air Handling Unit (AHU)
+. Introduced motion sensors for air curtains
+Waste production is minimised at the source itself
+Waste materials including solvents, waste water, glass,
+plastic liners, fibre drums, metal drum sheets, HDPE
+sheets and waste oil are recycled. Initiatives consist of
+setting up effluent treatment plants, recycling through
+registered recyclers and engaging scrap vendors for
+materials like paper, plastic and HDPE. Seventeen of
+our units are Zero Liquid Discharge (ZLD) facilities,
+while 5 are in the process of obtaining the status
+• Well-equipped solvent recovery systems enable us to
+recycle recovered solvents
+•
+We ensure safe and responsible waste disposal as per
+Govt. norms and at Govt. approved sites
+Energy Conservation
+Reduction in energy consumption directly and positively
+impacts environment protection. It not only reduces the need
+for energy, lowering resource depletion, and thus benefitting
+the environment, but also reduces operational costs making
+economic sense as well.
+At Sun Pharma, we are evaluating and implementing all
+available avenues to conserve as much energy as possible
+and reduce the environmental burden. These options broadly
+can be classified into two categories - using energy efficiently
+in manufacturing processes and tapping technology to
+generate green energy.
+Greener Operations
+A host of initiatives were undertaken to reduce the
+consumption of energy in our processes. This was achieved
+through optimising the systems at various points of different
+sites, some of which are:
+• Use of energy efficient motors
+Enhancement of steam condensate recovery
+• CFL lamps replaced with LED bulbs in a phased
+•
+manner
+Usage of condensate water in boiler
+Phase-wise installation of PHE (Plate Heat Exchanger)
+undertaken by replacing the conventional hot water
+tanks
+• Optimisation of water evaporation, hence, reduction
+in water consumption and simultaneous reduction in
+power consumption
+•
+Social well-being: Generating additional earning
+opportunities for the local people
+As of now, we have 12 facilities equipped with the
+biomass fuelled boilers, with a total steam generation
+capacity of 110 tph.
+• Disaster Relief
+The programmes range from large-scale, long-term projects
+to one-off need-specific initiatives, aimed towards touching
+the lives of those who are socio-economically marginalised
+and opportunity-challenged. The total CSR expenditure
+for the FY19 was 39.36 Million. Illustrated below
+are some of the key initiatives undertaken during the
+financial year FY18-19:
+Healthcare
+We implemented various healthcare programmes with the
+objective of offering up-gradation in health infrastructure
+to benefit the community on a sustained basis and in
+priority areas.
+Distributing Medicines
+Being in the healthcare industry, we directly support the
+socio-economically challenged sections of the society by
+providing medicines. Some of the beneficiaries include:
+• Financially challenged patients continue to gain our
+assistance in the form of free-of-cost medicines.
+In the reporting period, we continued to dispense
+free Riluzole which is used in the treatment of
+Amyotrophic Lateral Sclerosis (a life-threatening
+disease) to all patients
+Mobile Medical Unit
+Mobile Medical Units cater to the primary healthcare
+benefits of the targeted beneficiaries at their doorstep.
+The project is implemented with the help of Sun Pharma
+Community Healthcare Society and HelpAge India.
+The project primarily focusses upon the reduction of
+maternal and infant mortality rate. It also emphasises on
+improving health of adolescent girls, prevention and control
+of communicable and non-communicable diseases, and
+awareness regarding HIV / AIDS within the community.
+The is an ongoing project and saw an investment of ₹21.61
+Million during FY19. The mobile medical vans under this
+programme are serving the population of Halol, Ahmednagar,
+Karkhadi, Panoli, Ankleshwar, Madhurantakam, Mohali,
+Dewas, Toansa, Malanpur and Paonta Sahib. Under this
+project, 147,611 beneficiaries were provided clinical
+Annual Report 2018-19
+82
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+treatment, whereas 78,255 patients benefitted under
+preventive and promotive healthcare services.
+Healthcare Programme
+We support health service providers by providing
+health-related equipment, maintenance of health centres and
+medicine support for socio-economically challenged sections
+of the society. This project is being carried out in the rural
+areas of Halol and Toansa.
+Infrastructure and Rural Development
+Environmental well-being: Replacing fossil fuels by a
+carbon-neutral fuel
+Environment Conservation
+Safe Drinking Water and Sanitation
+As of March 31, 2019, there were no pending notices from
+pollution control boards.
+Principle 7: Policy Advocacy
+In an ever-evolving world of pharmaceuticals, where change
+in business policies can affect human lives, it is imperative
+that we have a consistent engagement with all the
+stakeholders who can have an impact on policy making.
+As we are focussed on making affordable medicines
+accessible, we share our invaluable experience and leverage
+our leadership position to provide incisive insights and
+detailed inputs to key decision makers in planning better
+policies for the patients. We also learn from the best
+practices of others. Along with collaborations with various
+trade and industry associations, we are also members of:
+Indian Drug Manufacturing Association (IDMA)
+•
+• Indian Pharmaceutical Alliance (IPA)
+• Bombay Chamber of Commerce and Industry
+•
+Confederation of Indian Industry (CII)
+Pharmaceutical Export Promotion Council of India
+(Pharmexcil)
+• The Associated Chambers of Commerce of India
+(ASSOCHAM)
+The Federation of Indian Chambers of Commerce and
+Industry (FICCI)
+Principle 8: Equitable Development
+Equitable development is key to long-term progress.
+At Sun Pharma, we strive to ensure a better quality of life
+for the community while contributing towards a healthy
+world. All our social efforts stem from our well-articulated
+Corporate Social Responsibility (CSR) policy and focus on
+some of the key priorities of the communities, which include:
+Healthcare
+.
+•
+Education
+•
+.
+•
+at majority of our facilities. Some of the SOPs include:
+effluent, we have achieved the status of zero liquid discharge
+• Family picnics to foster camaraderie
+Sun Pharma Excellence Awards
+In our constant endeavour to promote young pharma
+talent, we recognise top academic performers through the
+Sun Pharma Excellence Award Programme. This honour is
+given to final year students of the MBA in Pharmaceutical
+Management programmes in various institutes. We are also
+committed to hire exceptionally talented people from the
+campus and nurture them professionally.
+Principle 4: Stakeholder Engagement
+An underlying principle of stakeholder engagement
+is that stakeholders have the chance to influence the
+decision-making process. We have a comprehensive
+engagement mechanism in place to have a consistent and
+transparent dialogue with all our stakeholders.
+In-built in this process of interaction, is the repository of
+responses from internal as well as external stakeholders,
+which helps us in streamlining our policies, processes
+and products. A continuous communication over a period
+also builds relationship, trust and understanding with
+the stakeholders.
+The three pillars of our engagement mechanism with
+our stakeholders are 'inclusivity', 'accountability' and
+'responsibility'.
+Inclusivity
+We believe in including all our stakeholders whether minor
+or major, internal or external, who has an impact, direct or
+indirect, on our business. Already identified, some of the key
+stakeholders include:
+• Employees
+Neighbouring Communities
+Patients
+. Healthcare Professionals
+• Investors & Shareholders
+• Vendors, Suppliers & Distributors
+•
+Government & Regulators
+• Long-service award to recognise the loyalty and
+commitment of employees
+Accountability
+• Special celebration to accord due recognition to the
+retiring employee
+acknowledgement of employees' involvement and inputs
+towards the realisation of goals.
+STATUTORY REPORTS > Business Responsibility Report
+79
+Health and Safety
+Wellness of the workforce is given pivotal importance at Sun
+Pharma. Our robust Environment, Health and Safety (EHS)
+policy and operating guidelines ensure a safe and healthy
+environment. We have been progressively establishing ISO
+14001:2015 compliant Environmental Management System
+and OHSAS 18001:2007/ISO 45001:2018 compliant
+Occupational Health and Safety Management System at our
+key manufacturing facilities.
+We continue to devote our resources in imparting safety
+training, designed in such a way that each employee is
+aware of all the do's and don'ts of operational safety, right
+from prevention to emergency management. The reporting
+year saw the safety and skill up-gradation training of
+approximately 41% of our employees, including 34% of
+women employees.
+We encourage reporting of accidents, injuries and near
+misses, which enables us to be better prepared in the future.
+Safe work practices are endorsed, and the usage of unsafe
+equipment is disallowed.
+Key ingredients of our occupational health and
+safety approach:
+•
+Safe Working Systems
+Use of Personal Protective Equipment (PPE)
+Safety Inspections & Audits
+•
+Emergency Preparedness
+• Safety Risk Management
+Recognition & Recreation
+Recognition and recreation are crucial to motivate the
+employees to perform to the best of their potential. We have
+developed specific programmes to reward talent.
+Recognition is given to employees for exceptional
+performance through various recognition schemes.
+Regional and functional awards facilitate the
+Some of the other modules of employee recognition and
+recreation include:
+We are answerable to our stakeholders and this
+accountability leads to integrity. Consistent information
+is provided, and a considered response is sought, leading
+to a meaningful communication and fruitful collaboration.
+Some of the major platforms we use are:
+• Corporate Website
+Annual Reports
+Our actions emanating from these policies speaks louder
+than our intentions. Not only are we compliant with all
+the statutory laws and regulations, we have grievance
+redressal mechanisms in place for violations, if any. In the
+reporting year, there were no human rights violation
+complaints, relating either to child, forced and involuntary
+labour or discriminatory employment against the Company.
+However, we did receive three complaints related to sexual
+harassment during the year, which have been resolved.
+Principle 6: Environment
+The focus on economic development alone has led us to a
+point where we are staring at scarcity of natural resources,
+clean air, fresh water and rich biodiversity. At Sun Pharma,
+we are vigilant of the emerging situation and are acting in a
+manner so as to change this narrative.
+By investing in energy efficiency and reducing our
+consumption, we are not only making environmental
+sense, but also economic sense. We have embraced an
+all-encompassing Environment, Health & Safety (EHS) policy
+which etches out our concerns as well as the roadmap
+to resolve them.
+Summarised below are our green must dos:
+•
+Ensure statutory compliance
+•
+Optimise natural resources
+•
+Effect continuous improvement in environment
+management
+.
+Innovate greener technologies and processes
+• Spread green awareness across internal and external
+stakeholders
+We also engage with the concerned authorities and industry
+in devising responsible laws, regulations and standards.
+Some of our key material concerns include:
+Waste Management
+Systematic processes (SOPs) are in place at Sun Pharma
+to ensure effective waste management. With equipment
+installed at all our major facilities for recycling of the treated
+All human beings are born free and equal in dignity and
+rights. They are endowed with reason and conscience and
+should act towards one another in a spirit of brotherhood.
+We adhere to this principle regardless of the nation, location,
+language, religion, ethnic origin or any other status of any
+person. Our all-encompassing Human Rights Policy covering
+various tenets ranging from freedom of association to
+freedom from harassment, applied across our operations is
+testimony to our commitment.
+Principle 5: Human Rights
+For more details regarding this, please refer Principle 8
+of this report.
+Careful consideration is given to those who need more
+resources to uplift themselves. Initiatives are designed to
+continuously and consistently provide more amenities and
+opportunities to them.
+• Quarterly Reports
+. Investor Presentations
+•
+Official Press Releases
+Vendor Meets
+• Customer Feedback Sessions
+•
+•
+Dedicated Portals for Employees, Vendors and Field
+staff
+Under this programme, we invested 0.37 Million for above
+mentioned activities at Toansa and Halol. This programme
+has benefitted more than 2,240 patients.
+Participation in Independent Exhibitions
+Responsibility
+Stakeholders are the ones who fuel our sustenance and
+are also the ones who are impacted by our business.
+We therefore act as an instrument to responsibly balance the
+interests of all of them.
+Annual Report 2018-19
+80
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+• Social Media
+From the matters communicated with those charged with
+governance, we determine those matters that were of most
+significance in the audit of the standalone Ind AS financial
+statements for the financial year ended March 31, 2019
+and are therefore the key audit matters. We describe these
+matters in our auditor's report unless law or regulation
+precludes public disclosure about the matter or when, in
+extremely rare circumstances, we determine that a matter
+should not be communicated in our report because the
+adverse consequences of doing so would reasonably
+be expected to outweigh the public interest benefits of
+such communication.
+Education
+This project was implemented at Ahmednagar, Karkhadi,
+Halol, Ankleshwar, Madhurantakam, Panoli, Silvassa,
+Malanpur, Toansa and Dewas and has benefitted more
+than 11,821 students with an investment of *5.45
+Million during FY19.
+The Company has related party transactions which include,
+amongst others, sale and purchase of goods/services to its
+subsidiaries, associates, joint ventures and other related parties
+and lending and borrowing to its subsidiaries, associates and
+joint ventures.
+We focused on identification and disclosure of related
+parties in accordance with relevant accounting standards as a
+key audit matter.
+Our audit procedures amongst others included the following:
+•
+Evaluated the design and tested the operating effectiveness
+of controls over identification and disclosure of related
+party transactions.
+Obtained a list of related parties from the Company's
+Management and traced the related parties to declarations
+given by directors, where applicable, and to Note 51 of the
+standalone Ind AS financial statements.
+Annual Report 2018-19
+86
+Sun Pharmaceutical Industries Ltd.
+SUN
+PHARMA
+Key audit matter
+How our audit addressed the key audit matter
+.
+Read minutes of the meetings of the Board of Directors and
+Audit Committee.
+Tested material creditors/debtors, loan outstanding/loans taken
+to evaluate existence of any related party relationships; tested
+transactions based on declarations of related party transactions
+given to the Board of Directors and Audit Committee.
+Identification and disclosures of Related Parties (as described in Note 51 of the standalone Ind AS financial statements)
+. Evaluated the disclosures in the standalone Ind AS financial
+statements for compliance with Ind AS 24.
+Evaluated the disclosures in the standalone Ind AS
+financial statements.
+•
+This project was implemented with an investment of *1.86
+Million during FY19 in Ahmednagar, Madurantakam, Panoli,
+Paonta and Toansa.
+Awareness generation programme within the
+community on the importance of tree plantation
+Celebration of Environment Day in schools
+•
+Distribution of saplings
+•
+Roadside tree plantation
+.
+Environment conservation is important to reduce the
+degradation and exploitation of natural resources including
+flora and fauna. The activities that were implemented under
+this project were:
+Tested management's assumptions including forecasts and
+sensitivity analysis in respect of recoverability of deferred taxes
+on unabsorbed depreciation/carry forward losses.
+Evaluated disclosures of the tax positions, tax loss carry
+forwards and tax litigations in the standalone Ind AS
+financial statements.
+in Note 56(11) of the standalone Ind AS financial statements)
+Our audit procedures amongst others included the following:
+•
+•
+Evaluated the design and tested the operating effectiveness of
+the controls over the accounting for business combination.
+Instructed auditors of Sun Pharma Global FZE to perform
+specific audit procedures in respect of carve out of assets
+and liabilities pertaining to specified business of Sun Pharma
+Global FZE as at April 01, 2018 prepared by management
+and obtained their audit report on the carved out
+financial statements.
+Traced the previous year (March 31, 2018) restated financial
+information of the Company to the carve out audited financial
+information of Sun FZE for the year ended March 31, 2018.
+Tested the exchange restatements to check
+mathematical accuracy.
+Read the approval obtained from National Company Law
+Tribunal (NCLT).
+Tested supporting workings and evidence relating to the
+accounting as per the terms of the scheme of arrangement.
+Infrastructure and Rural Development
+Transition of business from Aditya Medisales Limited (as described in Note 56(12) of the standalone Ind AS financial statements)
+We focused on this area considering that this was a significant
+event during the year and being a transaction with a related party.
+FINANCIAL STATEMENTS > Standalone
+87
+AUDITOR'S RESPONSIBILITIES FOR THE AUDIT
+OF THE STANDALONE IND AS FINANCIAL
+STATEMENTS
+Our objectives are to obtain reasonable assurance about
+whether the standalone Ind AS financial statements as a
+whole are free from material misstatement, whether due
+to fraud or error, and to issue an auditor's report that
+includes our opinion. Reasonable assurance is a high level of
+assurance, but is not a guarantee that an audit conducted
+in accordance with SAs will always detect a material
+misstatement when it exists. Misstatements can arise from
+fraud or error and are considered material if, individually
+or in the aggregate, they could reasonably be expected to
+influence the economic decisions of users taken on the basis
+of these standalone Ind AS financial statements.
+As part of an audit in accordance with SAs, we exercise
+professional judgment and maintain professional skepticism
+throughout the audit. We also:
+•
+•
+•
+•
+Identify and assess the risks of material misstatement of
+the standalone Ind AS financial statements, whether due
+to fraud or error, design and perform audit procedures
+responsive to those risks and obtain audit evidence that
+is sufficient and appropriate to provide a basis for our
+opinion. The risk of not detecting a material misstatement
+resulting from fraud is higher than for one resulting from
+error, as fraud may involve collusion, forgery, intentional
+omissions, misrepresentations, or the override of
+internal control.
+Obtain an understanding of internal control relevant to
+the audit in order to design audit procedures that are
+appropriate in the circumstances. Under section 143(3)(i)
+of the Act, we are also responsible for expressing our
+opinion on whether the Company has adequate internal
+financial controls system in place and the operating
+effectiveness of such controls.
+Evaluate the appropriateness of accounting policies used
+and the reasonableness of accounting estimates and
+related disclosures made by management.
+Conclude on the appropriateness of management's use
+of the going concern basis of accounting and based
+on the audit evidence obtained, whether a material
+uncertainty exists related to events or conditions
+that may cast significant doubt on the Company's
+ability to continue as a going concern. If we conclude
+that a material uncertainty exists, we are required to
+draw attention in our auditor's report to the related
+disclosures in the standalone Ind AS financial statements
+or, if such disclosures are inadequate, to modify our
+opinion. Our conclusions are based on the audit
+evidence obtained up to the date of our auditor's report.
+However, future events or conditions may cause the
+Company to cease to continue as a going concern.
+Evaluate the overall presentation, structure and
+content of the standalone Ind AS financial statements,
+including the disclosures, and whether the standalone
+Ind AS financial statements represent the underlying
+transactions and events in a manner that achieves
+fair presentation.
+We communicate with those charged with governance
+regarding, among other matters, the planned scope and
+timing of the audit and significant audit findings, including
+any significant deficiencies in internal control that we identify
+during our audit.
+Specialty in progress
+The Company has announced transition of the Indian Domestic
+Formulation distribution business from Aditya Medisales Limited
+("AML"), a related party, to a wholly owned subsidiary of the Group.
+As part of the transition, the Company has taken back its unsold
+inventory lying with AML as on March 31, 2019.
+The Board of Directors are also responsible for overseeing
+the Company's financial reporting process.
+comprehensive income, cash flows and changes in equity of
+the Company in accordance with the accounting principles
+generally accepted in India, including the Indian Accounting
+Standards (Ind AS) specified under section 133 of the Act
+read with the Companies (Indian Accounting Standards)
+Rules, 2015, as amended. This responsibility also includes
+maintenance of adequate accounting records in accordance
+with the provisions of the Act for safeguarding of the assets
+of the Company and for preventing and detecting frauds and
+other irregularities; selection and application of appropriate
+accounting policies; making judgments and estimates that
+are reasonable and prudent; and the design, implementation
+and maintenance of adequate internal financial controls,
+that were operating effectively for ensuring the accuracy
+and completeness of the accounting records, relevant
+to the preparation and presentation of the standalone
+Ind AS financial statements that give a true and fair view
+and are free from material misstatement, whether due to
+fraud or error.
+Our audit procedures amongst others included the following:
+•
+•
+•
+•
+Evaluated the design and tested the operating effectiveness of
+the controls over the accounting of this transaction.
+Performed count of the physical inventory taken back
+from AML by the Company as at March 31, 2019 on a
+test check basis.
+Tested the working for valuation of such inventory on
+a sample basis.
+Traced the closing receivable balance with the confirmation
+received from AML.
+Tested supporting workings and evidences
+related to accounting.
+Evaluated the disclosures in the standalone Ind AS
+financial statements.
+OTHER INFORMATION
+The Company's Board of Directors is responsible for the
+other information. The other information comprises the
+information included in the Annual report, but does not
+include the standalone Ind AS financial statements and our
+auditor's report thereon.
+Our opinion on the standalone Ind AS financial statements
+does not cover the other information and we do not express
+any form of assurance conclusion thereon.
+In connection with our audit of the standalone Ind AS
+financial statements, our responsibility is to read the other
+information and in doing so, consider whether such other
+information is materially inconsistent with the financial
+statements or our knowledge obtained in the audit or
+otherwise appears to be materially misstated. If, based on
+the work we have performed, we conclude that there is
+a material misstatement of this other information, we are
+required to report that fact. We have nothing to report
+in this regard.
+RESPONSIBILITIES OF MANAGEMENT FOR THE
+STANDALONE IND AS FINANCIAL STATEMENTS
+The Company's Board of Directors is responsible for
+the matters stated in section 134(5) of the Act with
+respect to the preparation of these standalone Ind AS
+financial statements that give a true and fair view of the
+financial position, financial performance including other
+In preparing the standalone Ind AS financial statements,
+management is responsible for assessing the Company's
+ability to continue as a going concern, disclosing, as
+applicable, matters related to going concern and using the
+going concern basis of accounting unless management either
+intends to liquidate the Company or to cease operations, or
+has no realistic alternative but to do so.
+Good infrastructure is a gift that keeps on giving benefits for
+a long time. We focus on rural infrastructure upgradation
+support. This year we supported the installation of traffic
+signal lights in Ahmednagar, installation of solar lights in
+Halol, provision of LPG connections for Anganbari Centres at
+Madhurantakkam, infrastructure upgradation of community
+kitchen area in Dahej and playground development at Panoli.
+All the above-mentioned activities were implemented with
+an investment of 1.53 Million during FY19.
+Specialty in progress
+STATUTORY REPORTS > Business Responsibility Report
+Also, recognition of deferred tax assets is a key audit matter as
+the assessment of its recoverability within the allowed time frame
+involves significant estimate of the financial projections, availability
+of sufficient taxable income in the future and also involves
+significant judgements in the interpretation of tax regulations and
+tax positions adopted by the Company.
+The assessment of outcome of litigations involves significant
+judgement which is dependent on the facts of each case,
+supporting judicial precedents and legal opinions of external and
+internal legal counsels.
+The Company has significant tax litigations for which the Company
+assesses the outcome on a case-to-case basis considering the
+underlying facts of each tax litigation. Adverse outcomes could
+significantly impact the Company's reported profit and balance
+sheet position.
+Tax litigations and recognition of deferred tax assets (as described in Note 9 and 39 of the standalone Ind AS financial statements)
+Read the disclosures related to provisions and contingent
+liabilities in the standalone Ind AS financial statements to
+assess consistency with underlying documents.
+Read legal confirmations from Company's external legal
+counsels in respect of material litigations and considered that in
+our assessment.
+.
+How our audit addressed the key audit matter
+Key audit matter
+85
+FINANCIAL STATEMENTS > Standalone
+Specialty in progress
+Obtained a list of litigations from the Company's in-house legal
+counsel; identified material litigations from the aforementioned
+list and performed inquiries with the said counsel; obtained and
+read the underlying documents to assess the assumptions used
+by management in arriving at the conclusions.
+Evaluated the design and tested the operating effectiveness
+of controls in respect of the identification, evaluation of
+litigations, the recording / re-assessment of the related
+liabilities, provisions and disclosures.
+Considering the judgement involved in determining the need to
+make a provision or disclose as contingent liability, the matter is
+considered a key audit matter.
+The eventual outcome of the litigations is uncertain and
+estimation at balance sheet date involves extensive judgement of
+Management including input from legal counsel due to complexity
+of each litigation. Adverse outcomes could significantly impact the
+Company's reported profit and balance sheet position.
+The Company assesses the need to make provision or to disclose
+a contingent liability on a case-to-case basis considering the
+underlying facts of each litigation.
+Merger of specified business of Sun Pharma Global FZE (as described
+On December 01, 2018 the Company completed the demerger of
+the specified business of Sun Pharma Global FZE ("Sun FZE") and
+its merger into Sun Pharmaceutical Industries Limited. As disclosed
+in Note 56(11) to the standalone Ind AS financial statements,
+the merger is accounted for as a business combination under
+common control.
+Litigations (as described in Note 39 of the standalone Ind AS financial statements)
+The Company is involved in various legal proceedings including
+product liability, contracts, employment claims, anti-trust and
+other regulatory matters relating to conduct of its business.
+The merger has a significant impact on the standalone Ind AS
+financial statements of the Company including revenue, profit, tax,
+reserves and comparative numbers.
+Our audit procedures amongst others included the following:
+Safe Drinking Water and Sanitation
+Individual health & hygiene is largely dependent upon the
+availability of safe drinking water, proper sanitation habits,
+and availability of toilets with adequate water supply.
+Sanitation Project
+We have constructed individual household toilets for
+communities based at Halol, Silvassa, Ahmednagar and
+Maduranthakam locations. Under the programme named
+Swachachhta Pakhwada, we also emphasised upon IEC
+(Information, Education and Communication) activities
+considering that only the construction of toilets is not
+enough, but there is a requirement to organise awareness
+programmes to spread the message of cleanliness and
+hygiene for leading a healthy life.
+The project was undertaken with an investment of *5.42
+Million during FY19 for the construction of individual
+household toilets, and its sanitation and cleanliness drive
+programme. During this financial year, we have constructed
+216 individual household toilets under this programme.
+Drinking Water Project
+The drinking water project was implemented in Toansa and
+Panoli villages with an aim to provide safe drinking water to
+the communities.
+This ongoing project saw an investment of 0.46 Million.
+It included the community water project at Bhadi village
+in Bharuch and running deep bore well at village Toansa.
+125 households were provided with clean and potable
+drinking water in upper and lower Toansa.
+Water Conservation Project
+Under the flagship Scheme of the Government titled
+as 'Sujalam Sufalam Yojana' which focusses upon water
+conservation during rainy reason, we have implemented
+water conservation project to increase the availability of
+water in rural areas where local villages & communities
+depend upon local water bodies like ponds and ground
+water for survival.
+This project was undertaken with the collaboration of
+Government of Gujarat and was implemented for community
+benefits at Ankleshwar, Panoli, Karkhadi and Halol with an
+investment of *1.62 Million during FY19.
+Environment Conservation
+.
+•
+•
+•
+•
+We focused on this area considering that this was a significant
+event during the year.
+Our audit procedures amongst others included the following:
+How our audit addressed the key audit matter
+Key audit matter
+A comprehensive quality management system is in place to
+keep an all-inclusive and updated database of unfortunate
+events. Both healthcare and non-healthcare stakeholders can
+access the 'adverse impact reporting form' from our website.
+To encourage free and fair feedback, the reporter's identity
+is kept confidential and is diligently protected. After filtering
+the feedback received, the information is used for the
+systematic benefit-risk ratio assessment of the medicine.
+Active Engagement
+The nature of our business makes it imperative for us
+to view quality not only as a differentiator, but also as
+an elementary feature of our products. We have thus,
+incorporated pharmaco-vigilance SOPs to methodically
+examine, detect and gauge any adverse effects which may
+arise in or due to our products. This system results in the
+elimination of misfortunes at the initial phase itself. Being a
+customer-centric global pharmaceutical company, we keep
+pushing the envelope further in terms of product safety
+throughout our value-chain, with unrelenting vigilance of our
+R&D experts playing their part.
+Product Safety
+Another space we are investing in, is to make these
+affordable medicines accessible to a larger footprint.
+We continue to expand geographically serving more than
+100 countries catering to local treatment needs with our
+global portfolio of ~2,000 products.
+New cures and remedies are of no use to the people, if
+the cost of those medicines is prohibitive. With improving
+mortality rates, the need for specialty medicines have
+increased, but its affordability is a challenge. We are trying to
+put our efforts in overcoming this challenge.
+Improving access to medicines
+• Soliciting customers' feedback, insights and timely
+addressing their issues
+Practising stringent quality standards to ensure safe,
+effective and easy to use products
+Delivering affordable medicines and increasing their
+accessibility
+•
+•
+All our policies and processes finally transform into products
+for the customer, making them our key stakeholder.
+Spread globally, our customers' well-being is our focus and
+we intend to offer value to them through multi-pronged
+ways. Our customer-centricity approach hence encompasses
+a gamut of propositions:
+Principle 9: Customer Value
+Similarly, flood affected people in Tamil Nadu were also
+supported under this cause. The total relief amount donated
+for the benefit of the affected communities during FY19
+was 1.00 Million.
+We support relief measures in emergencies. During the
+flood related disaster that took place in Himachal Pradesh,
+we supported by providing funds for immediate relief to
+communities residing near flood affected areas.
+Disaster Relief
+83
+We engage with our customers who are spread globally,
+through a two-way interactive process:
+Provide:
+We disclose detailed information about all our products,
+which also complies with all applicable labelling codes
+and specifications. We also deal with customers in a
+transparent and ethical manner, eliminating any form of
+miscommunication or misunderstanding. Our employees'
+engagement with the customer is governed through the
+Code of Conduct.
+Receive:
+Key audit matters are those matters that, in our professional
+judgment, were of most significance in our audit of the
+standalone Ind AS financial statements for the financial year
+ended March 31, 2019. These matters were addressed in
+the context of our audit of the standalone Ind AS financial
+statements as a whole and in forming our opinion thereon
+and we do not provide a separate opinion on these matters.
+For each key audit matter below, our description of how our
+audit addressed the matter is provided in that context.
+We have determined the matters described below to be
+the key audit matters to be communicated in our report.
+We have fulfilled the responsibilities described in the
+'Auditor's responsibilities for the audit of the standalone Ind
+AS financial statements' section of our report, including in
+relation to these matters. Accordingly, our audit included
+the performance of procedures designed to respond to
+our assessment of the risks of material misstatement of
+the standalone Ind AS financial statements. The results of
+our audit procedures, including the procedures performed
+to address the matters below, provide the basis for our
+audit opinion on the accompanying standalone Ind AS
+financial statements.
+KEY AUDIT MATTERS
+with the 'Code of Ethics' issued by the Institute of Chartered
+Accountants of India together with the ethical requirements
+that are relevant to our audit of the financial statements
+under the provisions of the Act and the Rules thereunder,
+and we have fulfilled our other ethical responsibilities in
+accordance with these requirements and the Code of Ethics.
+We believe that the audit evidence we have obtained is
+sufficient and appropriate to provide a basis for our audit
+opinion on the standalone Ind AS financial statements.
+We conducted our audit of the standalone Ind AS financial
+statements in accordance with the Standards on Auditing
+(SAs), as specified under section 143(10) of the Act.
+Our responsibilities under those Standards are further
+described in the 'Auditor's Responsibilities for the Audit of
+the Standalone Ind AS Financial Statements' section of our
+report. We are independent of the Company in accordance
+BASIS FOR OPINION
+In our opinion and to the best of our information and
+according to the explanations given to us, the aforesaid
+standalone Ind AS financial statements give the information
+required by the Companies Act, 2013, as amended ("the
+Act") in the manner so required and give a true and fair
+view in conformity with the accounting principles generally
+accepted in India, of the state of affairs of the Company as
+at March 31, 2019, its profit including other comprehensive
+income, its cash flows and the changes in equity for the year
+ended on that date.
+We have audited the accompanying standalone Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited ("the Company"), which comprise the Balance sheet
+as at March 31, 2019, the Statement of Profit and Loss,
+including the Statement of Other Comprehensive Income,
+the Cash Flow Statement and the Statement of Changes in
+Equity for the year then ended, and notes to the financial
+statements, including a summary of significant accounting
+policies and other explanatory information.
+OPINION
+Quality education to the underserved and under-privileged
+children of the rural remote areas is our key intention.
+We have extended our efforts to improve the educational
+standards through ensuring basic educational facilities in
+rural areas such as infrastructure upgradation, computer
+training to students, model school development project,
+provision of potable drinking water for the students,
+distribution of stationary / books, celebration of
+school-based activities etc.
+REPORT ON THE AUDIT OF THE STANDALONE IND
+AS FINANCIAL STATEMENTS
+SUN
+To the Members of Sun Pharmaceutical Industries Limited
+INDEPENDENT AUDITOR'S REPORT
+Sun Pharmaceutical Industries Ltd.
+84
+Annual Report 2018-19
+In the last ten years, no material case regarding dishonest
+trade practices or irresponsible advertising have been filed
+against Sun Pharma by any stakeholder.
+Our constant engagements provide us with valuable
+feedback from customers and helps us identify and address
+issues, if any. In the reporting year, although no formal survey
+was carried out, our medical representatives continued to
+seek suggestions in person, from doctors and pharmacists.
+Our 'Customer Centricity Policy' also directs our employees
+to be receptive towards customer's needs and concerns.
+PHARMA
+.
+We continued our growth trajectory in FY20 with our
+overall revenues growing by about 13% to 323 Billion.
+Key growth drivers include India, our global specialty
+business, coupled with growth in the rest of the world
+and API business.
+Managing Director
+FY12
+FY13
+FY14
+FY15
+FY16
+FY17
+FY18
+FY19
+(Million)
+FY20
+Operating
+Performance
+Revenue from operations
+57,279
+Total income
+60,827
+Net profit for the year
+18,161
+80,195 112,999 160,804 273,920 284,870 315,784
+84,910 116,880 166,326 279,397 291,453 322,016
+26,567 29,831 31,415 45,394 45,457 69,644
+264,895 290,659 328,375
+273,282 300,914 334,735
+20,957 26,654 37,649
+FY11
+(after minority interest)
+Annual Report 2019-20
+Ten Year Financial Highlights
+(Consolidated)
+Total income
+(Million)
+291,453
+322,016
+273,282
+300,914
+334,735
+31,415
+45,394
+45,457
+450,245
+37,649
+Corporate Overview
+Key Performance Indicators
+(Consolidated)
+Net profit after minority interest
+(Million)
+69,644
+Key Performance Indicators | Ten-Year Financial Highlights (Consolidated)
+The Transformation Journey
+Particulars
+R&D expenditure
+3,313
+4,449
+6.1
+Financial
+Position
+Equity share capital
+1,036
+1,036
+Reserve and surplus
+93,798 121,322
+Property, plant &
+45,473 54,269
+1,036
+148,862
+75,763
+2,071
+183,178
+86,505
+2,071
+278,009
+143,616
+2,407 2,399
+327,418 363,997
+187,212 217,315
+2,399 2,399
+380,742 411,691
+238,073 271,424
+2,399
+450,245
+297,055
+equipment and other
+intangible assets (at cost)
+Carrying value of property,
+plant & equipment and
+6.9
+8.6
+7.6
+8.3
+a) Capital
+236
+362
+b) Revenue (excluding
+3,077
+4,088
+7,042
+427
+6,616
+10,418 19,550
+556 1,178
+9,862 18,373
+23,025
+783
+22,242
+411,691
+23,138
+1,679
+21,459
+718
+19,129
+19,736
+484
+19,252
+depreciation)
+c) % of sales
+6.0
+5.6
+6.3
+6.5
+7.2
+22,489 19,847
+1,819
+20,669
+380,742
+363,997
+327,418
+170 Consolidated
+268 NOTICE
+THE TRANSFORMATION
+JOURNEY
+We, at Sun Pharma, continue to remain steadfast
+in our transformation journey, building additional
+pathways of growth and simultaneously focusing on
+making the organisation more efficient.
+Our specialty business is one of our key initiatives in
+this transformation journey, targeting an innovation
+driven business model to drive sustainable and
+profitable growth. We have invested significant
+resources over the past few years in building this
+business; and are now focusing on commercial
+execution to ensure that future cash-flows justify
+these investments. The strategy is to build a
+robust portfolio of branded patented products for
+global markets.
+At the same time, we continue with our efforts
+for improving overall efficiencies in the company
+to achieve an optimum cost structure, relevant to
+today's business and market realities. These efforts
+are directed at multiple areas of the business, such
+as manufacturing, generics R&D spend, overall
+fixed cost reduction and savings in finance costs.
+We are also leveraging the power of information
+technology to enhance business efficiency and
+to improve employee productivity. Our objective
+is to judiciously utilise our resources with greater
+involvement of our people to make the organisation
+more efficient.
+While the COVID-19 pandemic has resulted in near
+term uncertainty, our strategic initiatives, coupled
+with our global strengths, resilience and power of
+execution, give us the confidence of navigating
+this uncertainty and remain focused on our
+transformation journey.
+25,214
+29,295
+45,145
+49,827
+96,848
+124,130
+149,404
+157,111
+172,919
+3,313
+4,449
+7,042
+Standalone
+97
+FINANCIAL STATEMENTS
+97-267
+THE
+TRANSFORMATION
+JOURNEY
+ANNUAL REPORT
+2019-2020
+Sun Pharmaceutical Industries Ltd.
+Reaching People. Touching Lives.
+SUN
+PHARMA
+10,418
+Contents
+CORPORATE OVERVIEW
+02 Key Performance Indicators
+03 Ten-Year Financial Highlights
+04 Managing Director's Message
+09 Board of Directors
+10 Leadership Team
+12-96
+STATUTORY REPORTS
+13 Management
+Discussion and Analysis
+34 Board's Report
+67 Corporate Governance
+85 Business Responsibility Report
+01-11
+25,214
+19,550
+23,138
+* During the FY16, the Company's equity shares increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL)
+with the Company, wherein 0.80 equity share of 1 each of the Company have been allotted to the shareholders of RLL for every 1 share of *5
+each held by them.
+* The Company had adopted Ind AS accounting standard w.e.f April 1, 2016 with prior period restated from April 1, 2015. Hence, FY16 onwards the
+financials are reported as per Ind-AS and are not strictly comparable with previous years.
+7.5
+11.0
+175,858
+12.4
+13.1
+8.7
+18.9
+18.9
+11.1
+15.7
+29.0
+93,798
+121,322
+148,862
+183,178
+278,009
+* During the FY14, the Company issued bonus shares in the ratio of one equity share of ₹1 for every share held.
+* During the FY11, each equity share of 5 was split into five equity shares of *1 each.
+⠀ ⠀ ⠀ ⠀ ⠀ ⠀ ⠀ ⠀ ⠀
+E E E E E E E E E
+22,489
+19,847
+60,827
+84,910
+116,880
+166,326
+279,397
+ZZ ZZZZZ Zi
+R&D investment
+23,025
+(Million)
+(Million)
+19,736
+ii
+Carrying value of property, plant & equipment and other
+intangible assets
+(Million)
+⠀ ⠀ ⠀ ⠀ ⠀ ⠀ ⠀ ⠀ ⠀
+Adjusted earning per share (post exceptional items)*
+(per share)
+Reserve and surplus
+Sun Pharmaceutical Industries Ltd.
+29,295
+49,827
+to feature Sun Pharma's micronisation technology,
+which utilises micronised particles to optimise
+absorption at a 20% lower dose and can be taken with
+or without food.
+EZALLOR SPRINKLE: In July 2019, Sun Pharma
+launched EZALLOR SPRINKLETM (rosuvastatin)
+capsules in the US for the treatment of three types of
+elevated lipid disorders in people who have difficulty
+swallowing, a problem that is estimated to affect
+approximately 30-35% of long-term care patients.
+DRIZALMA SPRINKLE: In October 2019, Sun Pharma
+launched DRIZALMA SPRINKLET (duloxetine
+delayed-release capsules) in the US for oral use. It is
+a serotonin and norepinephrine reuptake inhibitor
+(SNRI) designed for the treatment of various
+neuro-psychiatric and pain disorders in patients
+who have difficulty swallowing. The availability
+of DRIZALMA SPRINKLE expands Sun Pharma's
+portfolio of innovative formulation products designed
+for individuals with swallowing difficulties, the risk of
+which increases with age and exposure to age-related
+diseases and conditions, including depression, anxiety,
+and pain disorders.
+Targeting new markets for specialty products
+During FY20, we took steps to target two important
+markets for our specialty products viz., Japan and Greater
+China. In June 2019, we announced licensing agreements
+with a subsidiary of China Medical System Holdings Ltd.
+(CMS) for the development and commercialisation of two
+of our specialty products - Tildrakizumab (for psoriasis
+and psoriatic arthritis) and Cyclosporine A 0.09% (CSA) eye
+drops (for dry eye disease) for Greater China market. These
+licensing agreements will facilitate Sun Pharma's entry
+into the Greater China market, which is the second largest
+pharmaceutical market globally.
+In August 2019, Sun Pharma announced the filing of an
+application in Japan for manufacturing and marketing
+authorisation of ILUMYA for moderate-to-severe psoriasis
+with the Pharmaceuticals and Medical Devices Agency
+(PMDA), Japan. The PMDA has recently approved this
+application and launch preparations have been initiated.
+This launch in Japan will be a step forward for Sun Pharma
+in expanding the global franchise for ILUMYA.
+We have also recently entered into an exclusive licensing
+and distribution agreement with Hikma Pharmaceuticals
+PLC for commercialisation of ILUMYATM in the Middle East
+and North Africa (MENA) region.
+Evaluating new indications for ILUMYA
+In June 2019, we announced interim results from a
+Phase-2 study of ILUMYA in patients with active psoriatic
+arthritis (PSA). The interim analysis revealed that over
+71% of patients treated with ILUMYA experienced a 20%
+The Transformation Journey
+Annual Report 2019-20
+improvement in joint and skin symptoms (ACR20 response),
+meeting the primary endpoint of the study.
+The interim results showed that ILUMYA was well tolerated
+with a low rate of serious treatment-emergent adverse
+events. The Phase-2 study interim results also showed that
+across all patients receiving ILUMYA, 75.3% experienced a
+20% improvement in symptoms of PSA (ACR20 response)
+at week 24 compared to 50.6% of patients on placebo.
+The findings were similar in patients receiving 100 mg or
+200 mg of ILUMYA on a quarterly dosing schedule. For
+some patients on 100 mg ILUMYA, results were seen as
+early as 8 weeks. Furthermore, an average of 47.1% of all
+patients receiving ILUMYA achieved an ACR50 response,
+with some results seen as early as 12 weeks, compared to
+24.1% of patients on placebo.
+Given the encouraging Phase-2 study interim results,
+Sun Pharma is in the process of initiating the Phase-3
+trials for PsA. ILUMYA is already approved in the US for
+the treatment of adults with moderate-to-severe plaque
+psoriasis who are candidates for systemic therapy or
+phototherapy, and is being investigated for PsA, which
+affects up to 42% of people with plaque psoriasis.
+Reiteration of ILUMYA'S potential through
+long-term clinical data
+In October 2019, Sun Pharma presented long-term
+follow-up data from ILUMYA Phase-3 reSURFACE 1 and
+reSURFACE 2 trials. The data showed that the significant
+response rates seen in the initial 52 and 64 weeks,
+respectively, were maintained over four years for people
+with moderate-to-severe plaque psoriasis, with more than
+half the participants achieving at least 90% skin clearance
+[Psoriasis Area Sensitivity Index (PASI) 90] with no new
+safety concerns recorded.
+Additional study analyses showed that the 75-100% skin
+clearance achieved with ILUMYA treatment over three
+years was sustained equally in people with and without
+metabolic syndrome, a common condition in people with
+psoriasis. This positive data reiterates the potential of
+ILUMYA and also indicates that the product provides a
+sustained response against moderate-to-severe plaque
+psoriasis, thus giving long-term benefit to the patient.
+Enhancing the specialty R&D pipeline
+Developing/adding new innovative specialty products is
+imperative to ensure a strong R&D pipeline. We have taken
+multiple steps to strengthen the specialty pipeline.
+d)
+In August 2019, Sun Pharma entered into a global licensing
+agreement with the CSIR Indian Institute of Chemical
+Technology, Hyderabad (CSIR-IICT), for patents related
+to certain compounds with potential therapeutic activity
+across multiple indications in Sun Pharma's specialty focus
+areas. Under the terms of the license agreement, Sun
+Pharma gets exclusive global license for the said patents
+and any other future patents covered in the agreement.
+ABSORICA LD: In February 2020, Sun Pharma
+launched ABSORICA LDTM (isotretinoin) capsules in
+the US for the management of severe recalcitrant
+nodular acne in patients 12 years of age and older.
+ABSORICA LD is the only isotretinoin formulation
+<6
+Managing Director's Message
+R&D is also absolutely vital for strengthening our global
+specialty pipeline. It is a key determinant of the future
+growth and profitability of the specialty initiative. We
+expect to continue to invest in specialty R&D in the
+coming years as we progress further in building the
+specialty business.
+Our R&D investments for the year were approximately
+*20 Billion. We continue to be disciplined in identifying
+future R&D projects for the US generics market and the
+focus is on developing differentiated generics. Investments
+for developing the long-term specialty pipeline are
+expected to continue.
+Progress on specialty initiatives
+As we gain traction in the specialty business, it is
+becoming an additional growth engine for us. Our
+global specialty revenues for FY20 were about
+US$430 Million and accounted for approximately 9%
+of our consolidated revenues.
+We undertook multiple initiatives during the year as part
+of our efforts to build the specialty business. These include:
+1.
+New specialty product launches in the US
+2. Targeting new markets like Japan and China for our
+specialty products
+3.
+Evaluating new indications for ILUMYA
+4.
+5.
+Reiteration of ILUMYA'S potential through long-
+term clinical data
+Enhancing the specialty R&D pipeline by adding pre-
+clinical candidates
+New specialty launches
+During the year, we launched four specialty products in
+the US market viz., CEQUA, ABSORICA LD, EZALLOR
+SPRINKLE and DRIZALMA SPRINKLE.
+a)
+b)
+CEQUA: In October 2019, Sun Pharma commercialised
+CEQUA (cyclosporine ophthalmic solution) 0.09% in
+the US. It is indicated for increasing tear production
+in patients with keratoconjunctivitis sicca (dry eye),
+an inflammatory disease that affects more than 16
+Million people in the US. CEQUA is the first and only
+USFDA-approved cyclosporine treatment delivered
+with nanomicellar (NCELL™) technology, which helps
+to improve the bioavailability and physicochemical
+stability of cyclosporine, resulting in improved ocular
+tissue penetration. CEQUA's launch significantly
+enhances Sun Pharma's specialty ophthalmology
+portfolio in the US.
+This collaboration for developing new drugs is part of
+Sun Pharma's broader strategy for enhancing its global
+specialty pipeline. This agreement will facilitate the
+addition of pre-clinical candidates to Sun Pharma's global
+specialty pipeline. A successful clinical development
+of these potential compounds may enable Sun Pharma
+to commercialise pharmaceutical products for various
+therapeutic indications over the long term.
+We recently presented pre-clinical data for GL0034, a
+long-acting GLP-1R (Glucagon-Like Peptide-1 Receptor)
+agonist at the American Diabetes Association Virtual 80th
+Scientific Sessions. GLP-1R agonists are used to treat
+patients with type 2 diabetes.
+The data demonstrated significant outcomes on various
+diabetic parameters evaluated, viz. glucose reduction,
+decrease in HbA1c (an important marker for clinical
+efficacy), augmented insulin secretion, lowering of glucagon
+level and a marked and meaningful reduction in triglyceride
+levels. All these outcomes with GL0034 were found to
+be higher or significant to the currently marketed once a
+week GLP-1R agonists compared in the study. GL0034
+also induced a larger body weight reduction, 1.9x and 3.8x
+times higher than the two different standard once a week
+GLP-1R agonist drugs compared in the study, with similar
+food consumption. We look forward to validating this
+data in human clinical trials with the Phase-1 trials likely to
+commence by Q3FY21.
+6.
+7.
+8.
+Focus on cash collection and cash conservation in the
+business to ensure adequate liquidity
+Continuing our focus on improving R&D productivity
+and throughput
+Focus on cost optimisation and target
+higher efficiencies
+Continue to invest in developing new technologies
+and innovative products
+Our talented employees have done a remarkable job
+of ensuring business continuity despite the multiple
+disruptions resulting from the COVID-19 pandemic and
+lockdowns. All our teams, including Supply Chain, HR, IT,
+Finance, Manufacturing have worked tirelessly to:
+1.
+2.
+3.
+Maintain adequate supply of our products in
+various markets
+Enabling WFH for a large number of employees in a
+very short time
+Ensuring overall productivity without compromising
+on safety protocols
+We are also grateful to our Board of Directors for their
+guidance and support in these uncertain times.
+We are thankful for your support as a shareholder and we
+hope that you will continue to repose your confidence in us
+in future as well.
+Warm regards,
+8
+Dilip Shanghvi
+5.
+Enabling work from home for employees wherever
+and whenever it is necessary
+4.
+Supply chain protection, ensuring optimum utilisation
+of our factories and working closely with vendors to
+ensure continuity of supply
+In May 2020, Sun Pharma in-licensed SCD-044, a new
+chemical entity targeted as a potential oral treatment
+for atopic dermatitis, psoriasis and other auto-immune
+disorders. SCD-044 is entering Phase-2 clinical trials.
+CGMP compliance
+With global cGMP standards undergoing constant
+upgradation over the past many years, the pharmaceutical
+industry needs to be constantly on its toes with an
+unwavering focus on 24x7 compliance, which, in turn,
+raises compliance costs. Adherence to these quality
+standards and ensuring that each manufacturing
+facility remains compliant has become a key priority for
+pharmaceutical companies worldwide.
+During the year, many of our facilities underwent
+successful audits by multiple regulatory agencies, including
+the USFDA. Our Halol facility was inspected by the USFDA
+in December 2019, which resulted in 8 deviations. The
+facility was subsequently classified as "Official Action
+Indicated (OAI)", which implies that all new approvals
+for the US market from this facility will be put on hold
+till it is cleared by the USFDA. We have already initiated
+the corrective actions required to get the facility back
+into compliance.
+Focus on improving productivity
+We are continuing with our efforts to reduce expenses
+to achieve an optimum cost structure relevant to today's
+7 >>>
+Corporate Overview
+Managing Director's Message | Board of Directors
+Corporate Overview
+business and market realities. These efforts are being
+implemented in multiple areas of the business with greater
+involvement of people in order to make the Company
+more efficient. Further enhancement of manufacturing
+efficiencies, optimising manufacturing footprint,
+rationalising generics R&D investments, reducing fixed
+costs and interest cost are some of the areas targeted for
+efficiency improvement.
+We will continue to focus on growing each of our
+businesses faster than the market in which we operate.
+R&D investments in developing a differentiated generic
+pipeline as well as in building our specialty pipeline will
+continue in the coming years.
+Our strategy of developing the specialty business as an
+additional growth engine has started delivering, with a
+gradual ramp up in specialty revenues. We expect this
+momentum to continue over the next few years although
+the COVID-19 pandemic and lockdowns may throw up
+some uncertainties in the near-term. The specialty business
+is also helping us to move up the pharmaceutical value
+chain and bring in more innovation to our business. We
+have invested significant resources over the past few
+years in building this business and are now focusing on
+commercial execution to ensure that future cash flows
+justify these significant investments.
+Generics will continue to be an important part of the
+overall healthcare management globally. Focus on
+healthcare may increase in the post-COVID period and
+hence generics are likely to retain their importance as an
+effective and economical health solution. Sun Pharma's
+strong positioning in the global generics industry and
+continued investments for the future will ensure that it
+remains a prominent player in this space.
+Despite our proactive COVID risk response initiative, we
+do estimate some softening of sales in the near term due
+to the lockdowns and economic slowdown across various
+countries, although it is difficult to quantify the impact as
+of now. Our endeavour will be to ensure that we are the
+least impacted.
+Key focus areas for us will be:
+1. Employee protection and keeping
+workplace COVID-19 free
+2.
+3.
+Digital engagement with doctors and patients
+Overall outlook
+5 >>>
+R&D is imperative for any pharmaceutical company's
+future. Our focus is to continue investing in R&D to
+develop differentiated generics and innovative specialty
+products. Our global generic business requires a constant
+flow of new products and hence R&D capabilities
+to develop such products and meet the individual
+requirements of each market are very important. At Sun
+Pharma, we have multiple R&D centres and a strong R&D
+team to cater to these requirements.
+Research & Development (R&D)
+12.4
+13.1
+18.9
+18.9
+29.0
+8.7
+11.1
+15.7
+(post exceptional items)
+(in )*
+Earnings
+17.5
+25.7
+28.8
+15.2
+18.9
+18.9
+29.0
+8.7
+11.0
+7.5
+Adjusted earing per share
+(in Million)
+96,848 124,130 149,404
+157,111 172,919 175,858
+other intangible assets
+Investments
+Net current assets
+26,557 22,129
+58,622 76,749
+24,116 27,860 35,028 18,299 11,919
+86,618 126,969 135,488 167,973 150,666
+71,429 79,025 101,431
+117,716 137,296 159,477
+Stock
+11.1
+Information
+1,036
+1,036
+1,036
+2,071
+2,071
+2,407
+2,399
+2,399
+2,399 2,399
+Number of shares
+45,145
+15.7
+Earning
+Over the past many years, governments across the world
+have given more importance to controlling healthcare costs
+to balance their overall budgets. The COVID-19 pandemic
+and the economic costs that it has extracted, may force
+governments to revisit this presumption and try to strike
+a balance between providing adequate healthcare and the
+ability to fund it.
+While the pandemic obviously highlighted the importance
+of having an optimum healthcare infrastructure, it has also
+ignited a fresh debate on globalisation versus localisation.
+Supply chain network strategy is evolving as the pandemic
+has also highlighted the risks associated with vendor
+and/or location concentration. There is a higher sense
+of urgency now to achieve a pragmatic balance between
+outsourcing and self-sufficiency. Achieving higher resilience
+for supply chain is likely to prompt companies to evaluate
+diversification of their vendor base. However, in case of
+the pharmaceutical industry, new vendor identification and
+qualification will be a time-consuming process.
+There is also a gradual realisation that the COVID-19
+virus is here to stay and that all of us will have to learn to
+coexist with the virus till an effective treatment or vaccine
+becomes available. The industry is trying to develop a
+potential vaccine at a frantic pace while simultaneously
+putting in efforts to test existing drugs which can
+potentially aid COVID-19 treatment.
+K4
+The Transformation Journey
+Annual Report 2019-20
+There will be far-reaching changes in the way in which
+organisations are likely to operate going forward.
+Consumer behaviour and consumption patterns are
+also likely to change due to the global pandemic. Social
+distancing and maintaining individual hygiene (like using
+masks and hand sanitisers) have become imperative.
+Work-from-home (WFH) option has been exercised by
+most organisations for certain functions and there is a
+likelihood that it will continue for some more time till the
+viral infection comes under control. There is a possibility
+that WFH may become the new-normal for certain
+categories of corporate work force even after COVID-19
+comes under control.
+COVID-19 risk response
+In these critical and uncertain times, Sun Pharma has
+responded quickly and efficiently to meet the challenges at
+hand. We promptly evolved a COVID-19 Risk Management
+Plan and formed multiple COVID-19 Risk Response Teams
+under the guidance of the senior management to tackle the
+challenges resulting from the global pandemic.
+Sun Pharma ensured adequate supplies of medicines to
+its customers across the world despite the supply chain
+disruptions and the lockdown restrictions in various
+countries. In a situation where there were multiple
+disruptions in manufacturing because of various challenges
+in terms of availability of intermediates, availability of
+packaging material, etc., we have ensured uninterrupted
+supply of our products across markets. Sun Pharma has
+also supplied some of the medicines used for treating
+COVID-19 symptoms.
+There is now a higher focus on automation, digitalisation
+as well as increased dependence on analytical tools
+for decision making. We are leveraging IT technology
+tools to ensure business continuity as well as to
+facilitate WFH for many functions in the organisation.
+Changes at manufacturing facilities have been made to
+ensure productivity as well adherence to all safety and
+hygiene protocols.
+We are also evaluating the potential of some
+existing products which can be useful in COVID-19
+treatment. These include Nafamostat Mesilate and the
+phytopharmaceutical, AQCH. Both these products are
+currently undergoing Phase-2 trials in India.
+As part of our corporate social responsibility, we donated
+certain medicines useful in managing COVID-19 symptoms
+and hand sanitisers worth about 250 Million to support
+the Indian government's COVID-19 pandemic response.
+Sun Pharma has also arranged personal protective
+equipment (PPE) kits, disinfectants, gloves etc. to help
+fight the pandemic.
+FY20 highlights
+Operational performance
+For FY20, India formulation sales were at *97 Billion,
+accounting for about 30% of overall revenues. Adjusted
+for one-offs of last year, the India business has recorded
+a Y-o-Y growth of 15%. Our India business has done well,
+and we have started witnessing an increase in our market
+share. Our leading presence in chronic segments coupled
+with our strong brand equity with doctors is helping us
+increase our market share in an intensely competitive
+market. We have also initiated an expansion of sales force
+for the India business in order to expand our geographical
+footprint in India and to ensure that all our brands get the
+attention they deserve.
+Revenues in the US remained almost flat at 105 Billion
+and accounted for approximately 33% of our consolidated
+revenues for FY20. While we witnessed a ramp-up in sales
+of our specialty products, the generics business continued
+to face price erosion, driven by competitive intensity
+amongst manufacturers, buying consortium pressures and
+a higher pace of generic approvals from the USFDA. Our
+subsidiary, Taro, recorded a 4% decline in overall revenues
+to US$645 Million for the year.
+We grew by 3% in emerging markets for the year. We are
+witnessing a reduction in tender revenues in our South
+Africa business. Excluding the impact of the tender sales,
+we have recorded a low double-digit growth year-on-year
+for our emerging market portfolio. The depreciation of
+some emerging market currencies has also reduced our
+reported growth despite good underlying growth in
+local currency.
+Our sales in the rest of world (ROW) markets grew by 31%
+for the year, driven by increased sales in some key Western
+European markets and the full year consolidation of the
+Pola Pharma acquisition in Japan.
+While the pharmaceutical industry has taken significant
+strides in developing cutting-edge products in
+immunology, biologics, gene and cell therapy, etc., it
+has, barring certain exceptions, neglected developing
+new innovative products in the anti-infective segments.
+A growing incidence of chronic ailments like diabetes,
+cardiovascular, cancer etc., coupled with better pricing
+for products in these segments has resulted in very few
+new products being developed for infectious diseases.
+Over the past few decades, anti-infectives have become
+less attractive as potential areas for R&D due to relatively
+inferior pricing for such products compared to chronic
+products. Global innovator companies have reorganised
+their R&D pipelines to focus more on developing high-end
+chronic products. The global manufacturing infrastructure
+for anti-infectives has followed this trend, resulting in very
+few new capacities being set up for such products. The
+COVID-19 global pandemic may force both, the industry
+and governments, to revisit the importance of focusing on
+infectious disease research.
+Health first- that is the underlying message that the
+COVID-19 pandemic has reasserted. The pandemic is a
+health as well as an economic crisis and hence the role of
+the pharmaceutical industry has become very critical. The
+pandemic has shaken the global economy, but has given
+the world an opportunity to correct decades of under-
+investment in healthcare.
+Dear Shareholders,
+Dilip Shanghvi,
+Managing Director
+17.5
+25.7
+28.8
+15.2
+18.9
+18.9
+29.0
+8.7
+11.1
+per share-Basic (in *)*
+15.7
+* During the FY11, each equity share of 5 was split into five equity shares of 1 each.
+* During the FY14, the Company issued bonus shares in the ratio of one equity share of 1 for every share held.
+* During the FY16, the Company's equity shares increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL)
+with the Company, wherein 0.80 equity share of 1 each of the Company have been allotted to the shareholders of RLL for every 1 share of 5
+each held by them.
+* The Company had adopted Ind AS accounting standard w.e.f April 1, 2016 with prior period restated from April 1, 2015. Hence, FY16 onwards the
+financials are reported as per Ind-AS and are not strictly comparable with previous years.
+3 >>
+Corporate Overview
+Managing Director's Message
+Managing Director's Message
+We will continue to focus on growing each of
+our businesses faster than the market in which
+we operate. R&D investments in developing
+a differentiated generic pipeline as well as in
+building our specialty pipeline will continue in
+the coming years.
+per share-Diluted (In *)*
+Sun Pharma helps rural communities by development of
+basic and relevant infrastructure. The communities are
+benefitted through various projects such as construction
+of mini water tanks, installation of solar streetlights,
+construction of cattle trough and cloth washing station,
+maintenance of cricket playground, construction of
+Rural Infrastructure Projects
+At Sun Pharma, the 'how' is as important as the 'what'. So, the Board of Directors has laid out a Global Code of Conduct
+(CoC) for all Board members as well as all employees, including the senior management. Adherence to the CoC is non-
+negotiable, and it ensures a consistent commitment to and execution of ethics.
+Annual Report 2019-20
+• Stakeholders Relationship Committee
+• Risk Management Committee
+• Corporate Governance & Ethics Committee
+Code of Conduct & Policy
+Along with the CoC, various policies on significant subjects are designed to cover all areas of operations. We actively
+solicit feedback from all our stakeholders on our business conduct and keep our CoC and policies updated. In this
+reporting year, we received 3 stakeholder concerns, and all 3 have been resolved.
+Principle 2 Product Life Cycle Sustainability
+The Transformation Journey
+Many of our products have the hallmark of technology-based differentiation and cover the full range of dosage forms,
+including tablets, capsules, injectables, sprays, ointments, creams, and liquids. These products help the patients in treating
+their diseases and improving their quality of life. While we focus on meeting the unmet needs of patients, it is equally
+critical to minimise the negative impact on the planet and to serve the people in the community.
+Affordable Access
+Research & development has resulted in finding the cure for many diseases, and for some others, modern medicine
+has enabled patients to manage and control them. However, the cost of medicines has eluded the benefit to pass to
+majority of people. As one of the leading global generic companies, we make good health affordable and accessible to the
+marginalised communities and society at large.
+We offer a wide range of World Health Organisation prequalified (WHO PQ) anti-viral products that are supplied at very
+affordable cost to many countries in Africa, Latin America, CIS, and Asia to fight HIV / AIDS.
+Moreover, we also reach out to those in acute necessity by distributing some of our critical life-saving products free of
+charge. Below are some of our products that have broken the affordability and accessibility barrier:
+⚫ Rilutor (Riluzole): Used for treating Amyotrophic Lateral Sclerosis (a life-threatening disease), this product is distributed
+free of cost to all patients
+• Sun Pharma committed a donation of medicines and hand sanitisers worth 250 Million to support India's COVID-19
+pandemic response
+Empowering Communities
+So, we responsibly address all the three bottom lines - along with making good health more affordable and widely
+accessible; we work towards empowering communities and enriching the environment.
+While we expand to serve patients in newer geographies globally, we continue to elevate communities around us
+locally. Whether by employing them or by sourcing material from them, we boost local economy and in turn, reduce our
+carbon footprint.
+Anganwadi Centre, setting-up traffic blinkers, construction
+of community hall, etc.
+Water Conservation Projects
+Drinking Water Projects
+Business Responsibility Report
+Statutory Reports
+95 >>>
+The project was implemented in Vadodara, Madurantakam,
+Ahmednagar and Paonta Sahib with an investment of $1.16
+Million during FY20.
+We have implemented green belt development as a
+commitment towards environmental sustainability.
+Awareness generation activities have also been carried out
+in schools and community for sensitising people towards
+the importance of conservation of environment.
+Environment Conservation Programmes
+We invested *2.21 Million during FY20 on these projects
+and approximately 1,070 households, 165 women &
+children, and other community members benefitted
+through these initiatives.
+The project was implemented in five government schools
+based at Halol (Gujarat) and one government school based
+at Ahmednagar (Maharashtra) with an investment of *1.87
+Million during FY20 and benefitted 714 girl students.
+School Toilet Block Construction Project
+During FY20, we invested 0.49 Million in this programme
+and 60 rural households from Madurantakam, Tamil
+Nadu, benefitted.
+With an aim to promote better human health and improved
+quality of life of rural communities, we took the initiative to
+construct individual household toilet blocks and to conduct
+IEC activities regarding awareness of good sanitation
+practices, etc.
+Construction of Individual Toilets
+Sanitation Programmes
+The project was implemented in rural villages of Karkhadi
+(Gujarat) and Madurantakam (Tamil Nadu) with an
+investment of 0.31 Million during FY20 and benefitted
+more than 10,000 households and community at large.
+These projects are supported in view of water scarcity
+in our operational areas. The main objective is to harvest
+rainwater for onward use by the community.
+We believe that quality education happens in a clean
+and healthy environment. The 'Swachh Bharat, Swachh
+Vidyalaya Abhiyan', launched by the Government aims to
+improve hygiene and sanitation across schools through
+improved water and sanitation facilities. In alignment with
+that, we have built dedicated toilet block facilities for girl
+students in government schools. It will enable them with
+the surety of safety, dignity, and equality.
+The focus is on provision of safe and potable drinking water
+in villages of Ahmednagar (Maharashtra), Toansa (Punjab)
+and Paonta (Himachal Pradesh). We provided water storage
+tanks at Ahmednagar, whereas deep borewell-based
+drinking water supply system is being maintained at Toansa
+throughout the year.
+Initiatives are undertaken to upskill the people, so that they can earn more and enrich their life. If they are suppliers, we
+invest in upgrading them with modern technology and need-based credit. It enables them to raise their standard and
+quality of our products.
+Enriching Environment
+1,349,400
+109,724
+Principle 3 Employee Well-being
+Employee performance is critical to the overall success of the company. We attribute our growth to our 36,000+ strong
+multi-cultural workforce from over 50 different nationalities. Our culturally diverse workforce is one of our biggest
+strengths and the rich experience they bring, across varied skill sets and backgrounds, is invaluable. We are proud that our
+global workforce is bound together by our common values.
+We are committed to provide them a safe workplace, introduce employee friendly progressive policies, ensure growth
+opportunities, and encourage learning and development options. This creates an environment where personal goals and
+business goals are aligned to realise their maximum potential. Our 360-degree HR Policy covers every facet of talent
+management from recruitment to retention and keeps evolving with the feedback of employees.
+Some of the main features of the policy are:
+Employee Engagement
+Engaged employees are happier, both at work and in their
+personal lives. At Sun Pharma, we encourage our employee
+to share their feedback transparently so that we can
+alleviate their anxieties. This is undertaken through both
+formal and informal channels. We utilise these channels to
+inform them of the Company's vision and direction as well.
+Briquette (MT)
+When employees feel that their voices are being heard,
+they feel more empowered and motivated to contribute
+harder. It reduces staff turnover, improves productivity
+and efficiency, improves customer retention and results in
+sustainable business performance.
+The ability to continually develop and improve one's
+skills and knowledge to perform effectively and adapt to
+changes in the workplace is crucial in this ever-evolving
+world. The nature of our business also requires us to keep
+moving up the knowledge ladder to remain relevant.
+<90
+At Sun Pharma, our employees are provided with
+opportunities to enhance their technical and soft
+skills through continuous training and development
+programmes. This may include putting the employees
+through either in-house competency development sessions
+and/or external capability enhancement programmes.
+Equality of Opportunity
+We encourage diversity of every kind and discourage bias
+of any kind. At Sun Pharma, merit is the only criteria to
+grow. We nurture diversity by encouraging a fine amalgam
+of talent from different age groups, genders, castes,
+domains, religions, cultural backgrounds etc.
+As of March 31, 2020, we had a total workforce of over
+36,000 people globally, including permanent, temporary,
+and contractual employees, of which 1,432 were
+permanent women employees and 15 were permanent
+employees with disabilities.
+The Transformation Journey
+Continuous Learning
+For more details regarding our community initiatives, please refer Principle 8 of this report.
+HSD (L)
+Furnace Oil (MT)
+Health of humans and the planet are intertwined. At Sun Pharma, we are fully committed to achieving excellence in
+Environment, Health & Safety (EHS) and conduct our activities in the most responsible manner, guided by our EHS policy.
+89 »
+Statutory Reports
+Business Responsibility Report
+EHS performance is periodically reviewed. The key processes comprise regular safety surveillance, inspections, audits,
+and regular monitoring of the environment, internally and through approved laboratories. Initiatives include increasing
+efficiency and reduced consumption of natural resource.
+For more details regarding our environment initiatives, please refer Principle 6 of this report.
+Calculating our environmental performance per product poses unique challenges, owing to a diverse product portfolio and
+complex production processes. We, therefore, monitor and manage our total annual water and energy performance vis-à-
+vis our total annual production.
+9,323
+Production:
+Formulations: 22,910 Million units
+Water usage:
+3,020,840 KL
+Electricity (kWh)
+Gas (in '000 nm3)
+468,167,100
+11,777
+APIs: 3,405 ton
+Also, drinking water supply system was renovated
+and restored at Paonta (Himachal Pradesh) under this
+programme. The project is benefitting 2,263 households
+with an investment of 0.32 Million during FY20.
+Principle 9 Customer Value
+Our specialists considered legal precedence and other rulings in
+evaluating management's position on these tax litigations.
+Engaged tax specialists, to evaluate management's assessment of the
+outcome of these litigations.
+Obtained complete list of ongoing tax litigations from management
+along-with their assessment of the cases based on past precedents,
+judgements and matters in the jurisdiction, legal opinions sought by
+management, correspondences with tax department etc.
+Evaluated the design and tested the operating effectiveness of
+controls in respect of the identification and evaluation of tax
+litigations/Deferred tax and the recording and re-assessment of the
+related liabilities/assets and provisions and disclosures.
+.
+Our audit procedures amongst others included the following:
+Recognition of deferred tax assets involves the assessment of its
+recoverability within the allowed time frame involves significant
+estimate of the financial projections, availability of sufficient taxable
+income in the future and also involves significant judgements in the
+interpretation of tax regulations and tax positions adopted by the
+Company.
+Tested management's assumptions including forecasts and sensitivity
+analysis in respect of recoverability of deferred taxes on unabsorbed
+depreciation/carry forward losses.
+The assessment of outcome of litigations involves significant judgement
+which is dependent on the facts of each case, supporting judicial
+precedents and legal opinions of external and internal legal counsels and
+hence has been considered as a Key Audit Matter.
+Tax litigations and recognition of deferred tax assets (as described in Note 9 and 39 of the standalone Ind AS financial statements)
+Read the disclosures related to provisions and contingent liabilities in
+the standalone Ind AS financial statements to assess consistency with
+underlying documents.
+How our audit addressed the key audit matter
+Considering the judgement involved in determining the need to make
+a provision or disclose as contingent liability, the matter is considered a
+key audit matter.
+Key audit matter
+Financial Statements
+97 >>
+The Company has significant tax litigations for which the Company
+assesses the outcome on a case-to-case basis considering the
+underlying facts of each tax litigation. Adverse outcomes could
+significantly impact the Company's reported profit and balance sheet
+position.
+Circulated, obtained and read legal confirmations from Company's
+external legal counsels in respect of material litigations and considered
+that in our assessment.
+Evaluated disclosures of the tax positions, tax loss carry forwards and
+tax litigations in the standalone Ind AS financial statements.
+The Company has related party transactions which include, amongst
+others, sale and purchase of goods/services to its subsidiaries,
+associates, joint ventures and other related parties and lending and
+borrowing to its subsidiaries, associates and joint ventures.
+98
+Inquired with management the exposure to litigation or financial
+penalties that could adversely impact the Company's financial
+results in case of material interruption of supply and invocation
+of failure to supply clauses in several long-term contracts with
+customers in various geographies, including the United States.
+Obtained and read the relevant agreements and correspondence
+Inquired with the Company on Government actions including tax
+breaks and incentives, consequent business decisions, subsequent
+events and other economic developments which could have an
+impact on the financial statements and ascertained whether the
+impact has been appropriately recorded.
+The extent to which COVID-19 impacts the Company's operations
+will depend on future developments, which are highly uncertain and
+cannot be predicted, including new information which may emerge
+concerning the severity of the coronavirus and the actions to contain or
+treat its impact. It has led to the reassessment of certain assumptions
+and judgements used in preparation of financial statements. Further,
+COVID-19: Impact on financial reporting and audit procedures (as described in Note 56(12) of the standalone Ind AS financial statements)
+Coronavirus disease 2019 ("COVID-19), was declared a global
+pandemic by World Health Organisation. COVID-19 has caused severe
+disruptions, caused by Government actions, consequent business
+decisions or economic environment developments. As a measure for
+containment of COVID19, lockdowns were imposed by Governments in
+various geographies where the Company operates.
+Our audit procedures amongst others included the following:
+Evaluated the disclosures in the standalone Ind AS financial
+statements for compliance with Ind AS 24.
+Identification and disclosures of Related Parties (as described in Note 51 of the standalone Ind AS financial statements)
+to the Board of Directors and Audit Committee.
+Tested material creditors/debtors, loan outstanding/loans taken
+.
+• Read minutes of the meetings of the Board of Directors and Audit
+Committee
+Obtained a list of related parties from the Company's Management
+and traced the related parties to declarations given by directors,
+where applicable, and to Note 51 of the standalone Ind AS financial
+statements.
+Evaluated the design and tested the operating effectiveness
+of controls over identification and disclosure of related party
+transactions.
+Our audit procedures amongst others included the following:
+We focused on identification and disclosure of related parties in
+accordance with relevant accounting standards as a key audit matter.
+to evaluate existence of any related party relationships; tested
+transactions based on declarations of related party transactions given
+• Obtained a list of litigations from the Company's in-house legal
+counsel; identified material litigations from the aforementioned list
+and performed inquiries with the said counsel; obtained and read the
+underlying documents to assess the assumptions used by management
+in arriving at the conclusions.
+The eventual outcome of the litigations is uncertain and estimation
+at balance sheet date involves extensive judgement of Management
+including input from legal counsel due to complexity of each litigation. •
+Adverse outcomes could significantly impact the Company's reported
+profit and balance sheet position.
+Our audit procedures amongst others included the following:
+Evaluated the design and tested the operating effectiveness of controls
+in respect of the identification, evaluation of litigations, the recording/
+re-assessment of the related liabilities, provisions and disclosures.
+Detailed information for all our products, which
+also complies with all applicable labelling codes and
+specifications. We also deal with customers in a
+transparent and ethical manner, eliminating any form of
+miscommunication or misunderstanding. Our employees'
+engagement with the customer is governed through the
+Code of Conduct.
+Provide:
+Our engagement with our customers is continuous
+and consistent. To make it effective, we follow the
+two-way process:
+Active Engagement
+Our R&D experts play a huge role in setting a higher
+benchmark where product safety and quality are
+concerned, raising us to be a global leader in our segment.
+They are supported by the holistic quality management
+system in place. It includes the 'adverse impact reporting
+form' which is available on our website for anyone to fill
+in case of an unfortunate event. The feedback is used to
+create an updated database of unfavourable incidents
+that helps in assessing the systematic benefit-risk ratio
+of the medicine.
+Being in the healthcare industry, product safety is crucial.
+Quality of our products directly affects the well-being of
+our patients. Any adverse effects which may arise in or due
+to our products, is critical. Hence, we have incorporated
+pharmaco-vigilance SOPs to methodically examine, detect,
+and gauge them, which allows us to remove these at the
+development phase itself.
+Product Safety
+Receive:
+But our real achievement lies in making these products
+affordable and accessible for our customers. Our presence
+in more than 100 countries helps us in being responsive
+to local treatment needs, while continually improving
+our global product offering in a range of therapeutic
+segments including psychiatry, anti-infectives, neurology,
+cardiology, orthopaedic, diabetology, gastroenterology,
+ophthalmology, nephrology, urology, dermatology,
+gynaecology, respiratory, oncology, dental and nutritionals.
+Chronic Healthcare Products
+• Soliciting customers' feedback, insights and timely
+addressing their issues
+• Practising stringent quality standards to ensure safe,
+effective, and easy to use products
+• Delivering affordable medicines and increasing
+their accessibility
+We develop high-quality, affordable medicines trusted by healthcare professionals and patients in over 100 countries
+across 6 continents. State-of-the-art plants, cutting-edge technology, robust processes, and comprehensive policies, all
+resulting in medications that alleviate pain of the patients and heal them. Customer is at the core of all our endeavours.
+We create value for the customer by
+The outbreak of Novel Corona Virus (COVID-19) was
+declared as world pandemic by WHO in March'20.
+Educating people for adapting measures to prevent the
+spread of Corona Virus became our key priority. Along with
+awareness generation programmes, we also distributed
+food packets in the rural communities of Madurantakam,
+Tamil Nadu. The total investment done was 0.06
+Million during FY20.
+Disaster Relief Programme (COVID-19)
+We produce a comprehensive portfolio of specialty and
+generic products targeting a wide spectrum of chronic
+and acute treatments. Our manufacturing capabilities
+span generics, branded generics, complex generics,
+specialty products, over the counter (OTC) products, anti-
+retrovirals (ARVs), Active Pharmaceutical Ingredients (APIs)
+and intermediates.
+Valuable feedback from customers to help us identify and
+address issues, if any. In the reporting year, although no
+formal survey was carried out, our medical representatives
+continued to seek suggestions in person, from doctors
+and pharmacists. Our 'Customer Centricity Policy' also
+directs our employees to be receptive towards customer's
+needs and concerns.
+There is no material case filed by any stakeholder against
+Sun Pharma, regarding dishonest trade practices or
+irresponsible advertising, during the last eleven years.
+<96
+The Company assesses the need to make provision or to disclose a
+contingent liability on a case-to-case basis considering the underlying
+facts of each litigation.
+Litigations (as described in Note 39 of the standalone Ind AS financial statements)
+The Company is involved in various legal proceedings including
+product liability, contracts, employment claims, Department of Justice •
+(DOJ) investigations, anti-trust and other regulatory matters relating
+to conduct of its business.
+How our audit addressed the key audit matter
+We have determined the matters described below to be
+the key audit matters to be communicated in our report.
+We have fulfilled the responsibilities described in the
+'Auditor's responsibilities for the audit of the standalone
+Ind AS financial statements' section of our report, including
+in relation to these matters. Accordingly, our audit included
+the performance of procedures designed to respond to
+our assessment of the risks of material misstatement of
+the standalone Ind AS financial statements. The results of
+our audit procedures, including the procedures performed
+to address the matters below, provide the basis for our
+audit opinion on the accompanying standalone Ind AS
+financial statements.
+Key audit matters are those matters that, in our
+professional judgment, were of most significance in our
+audit of the standalone Ind AS financial statements for the
+financial year ended March 31, 2020. These matters were
+addressed in the context of our audit of the standalone
+Ind AS financial statements as a whole and in forming
+our opinion thereon and we do not provide a separate
+opinion on these matters. For each key audit matter below,
+our description of how our audit addressed the matter is
+provided in that context.
+KEY AUDIT MATTERS
+of Chartered Accountants of India together with the ethical
+requirements that are relevant to our audit of the financial
+statements under the provisions of the Act and the
+Rules thereunder, and we have fulfilled our other ethical
+responsibilities in accordance with these requirements and
+the Code of Ethics. We believe that the audit evidence
+we have obtained is sufficient and appropriate to provide
+a basis for our audit opinion on the standalone Ind AS
+financial statements.
+Key audit matter
+We conducted our audit of the standalone Ind AS financial
+statements in accordance with the Standards on Auditing
+(SAS), as specified under section 143(10) of the Act.
+Our responsibilities under those Standards are further
+described in the 'Auditor's Responsibilities for the Audit
+of the Standalone Ind AS Financial Statements' section
+of our report. We are independent of the Company in
+accordance with the 'Code of Ethics' issued by the Institute
+BASIS FOR OPINION
+In our opinion and to the best of our information and
+according to the explanations given to us, the aforesaid
+standalone Ind AS financial statements give the
+information required by the Companies Act, 2013, as
+amended ("the Act") in the manner so required and give
+a true and fair view in conformity with the accounting
+principles generally accepted in India, of the state of affairs
+of the Company as at March 31, 2020, its profit including
+other comprehensive income, its cash flows and the
+changes in equity for the year ended on that date.
+We have audited the accompanying standalone Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited ("the Company"), which comprise the Balance
+Sheet as at March 31, 2020, the Statement of Profit and
+Loss, including the Statement of Other Comprehensive
+Income, the Cash Flow Statement and the Statement of
+Changes in Equity for the year then ended, and notes
+to the standalone Ind AS financial statements, including
+a summary of significant accounting policies and other
+explanatory information.
+REPORT ON THE AUDIT OF THE STANDALONE
+IND AS FINANCIAL STATEMENTS
+OPINION
+Annual Report 2019-20
+To the Members of Sun Pharmaceutical Industries Limited
+Independent Auditor's Report
+The Transformation Journey
+Annual Report 2019-20
+Freedom of Association
+Energy Usage:
+We continue to support a management-recognised
+employee association, which covers approximately 4% of
+our employee membership.
+Renewable energy is a great opportunity to reduce our
+dependence on fossil fuels and we are committed to
+generate more green energy. Our investments in the wind
+energy are testimony of our commitment and in FY20, we
+generated around 1.6 Million kWh of clean energy.
+Carbon Emission
+By converting from 'conventional' furnace oil / light
+diesel oil boilers to 'eco-efficient' biomass briquette-
+based boilers, we are implementing Clean Development
+Mechanism (CDM) projects at our facilities. It not only
+restricts the emissions of our operations, but also achieves
+two more objectives:
+We believe that Freedom of Association is an important
+mechanism to enhance employee working experience and
+develop a conducive environment for achieving employees'
+and organisational goals.
+• Environmental well-being: Replacing fossil fuels by a
+carbon-neutral fuel
+As of now, we have 13 facilities equipped with the
+biomass fuelled boilers, with a total steam generation
+capacity of 123 tph.
+As of March 31, 2020, there were no pending notices from
+pollution control boards.
+93 >>
+Greener Investments
+Statutory Reports
+Principle 7 Policy Advocacy
+Being a leader brings responsibilities. Developing high quality affordable medicines trusted by healthcare professionals as
+well as patients and making it accessible across 6 continents is a mammoth task. Add to it, the ever-changing landscape of
+changes from technology to research to policy.
+With our considerable experience and leadership position,
+we share our insights to influence key decisions that affects
+patients and their well-being, leading to better health
+policies. It also involves learning from best practices of
+others. While we collaborate with various stakeholders,
+trade, and industry associations, we are also members of:
+• Indian Drug Manufacturing Association (IDMA)
+• Indian Pharmaceutical Alliance (IPA)
+• Bombay Chamber of Commerce and Industry
+• Confederation of Indian Industry (CII)
+• Pharmaceutical Export Promotion Council of
+India (Pharmexcil)
+• The Associated Chambers of Commerce of
+India (ASSOCHAM)
+Business Responsibility Report
+• Optimisation of water evaporation, hence reduction
+in water consumption and simultaneously reduction in
+power consumption
+• Spray drying of liquid waste (RO rejects) using flue gas
+heat of incinerator
+• Hot water generation from jacket steam
+• Ensure safe and responsible waste disposal as per Govt.
+norms and at Govt. approved sites
+Energy Conservation
+Energy conservation is at the top of the sustainable
+energy hierarchy. It not only reduces the need for energy,
+lowering resource depletion, and thus benefitting the
+environment, but also reduces operational costs making
+economic sense as well.
+At Sun Pharma, we are evaluating and implementing all
+available avenues to conserve as much energy as possible
+and reduce the environmental burden. These options
+broadly can be classified into two categories - using
+energy efficiently in manufacturing processes and tapping
+technology to generate green energy.
+Greener Operations
+Reduction in the consumption of energy was the prime
+focus at all our manufacturing plants and a lot of initiatives
+were undertaken. This was achieved through optimising
+the systems at various points, some of which are:
+• Installation of condensate recovery system and
+increasing condensate recovery
+• Usage of condensate water in boiler
+• CFL replaced with LED as an energy
+conservation initiative
+• Timer provided on field light and ETP
+blowers to save energy
+• Installation of Variable Frequency Drives (VFDs) to
+save energy at AHUS
+• Hot water generation from jacket heat exchanger
+• Installation of RO plant in ETP and treated ETP water
+for cooling tower water makeup
+• Steam condensate recovered and reused in boiler
+• Installation of boiler economisers and air pre-heaters
+• Replacement of cooling tower fan blade to save power
+• Installation of energy efficient equipment like
+coating dry scrubber
+• Using air compressor's exhaust air as inlet air for
+boiler combustion
+• The Federation of Indian Chambers of Commerce and
+Industry (FICCI)
+• Well-equipped solvent recovery systems enable us to
+recycle recovered solvents
+Principle 8 Equitable Development
+At Sun Pharma, we are guided by our comprehensive
+Corporate Social Responsibility (CSR) Policy and our
+community development programmes are intended to
+contribute towards a better quality of life for the people in
+general, and upliftment of the marginalised sections of the
+society, in particular. In FY20, we invested *43.71 Million
+for the implementation of CSR programme and projects.
+Annual Report 2019-20
+• Financial support to Citizen Blood Donation Society at
+Vadodara, Gujarat for promoting blood donation
+• Maintenance of Govt. abandoned dispensary which
+aims at delivering primary healthcare services, provision
+of medicines, awareness generation camps, etc.
+at Toansa, Punjab
+The programme has benefitted 6,530 people through
+execution of these projects, and we invested *0.73 Million
+in FY20 for these initiatives.
+Children Eye Health Initiative Project
+Children Eye Health Initiative Project was implemented
+in various schools of Vadodara district. The focus of
+the project was to conduct basic eye health screening
+of students and providing free spectacles to students
+suffering with any kind of vision issues.
+During its 1st phase, screening of total 1,786 students was
+completed, out of which 602 students were identified with
+low vision and were provided with ready-made and tailor-
+made spectacles. The project was implemented with an
+investment of 0.13 Million during the FY20.
+The Transformation Journey
+Education Programmes
+Sun Pharma takes initiatives to enhance the educational
+standards in identified schools under this project by
+improving basic educational facilities. The following
+activities were carried out during FY20:
+• Infrastructure upgradation in various Government
+schools of Halol, Panoli, Ahmednagar, Dewas,
+and Madurantakam
+• Digital classroom in four Government
+schools of Halol and Karkhadi in Gujarat, and
+Madurantakam in Tamil Nadu
+• Remedial classes for students of 12th std.
+in Halol, Gujarat
+• Skill development and computer training to the
+women and youth at Malanpur, Madhya Pradesh and
+Vadodara, Gujarat
+The project has benefitted 4,625 students, 150 other
+persons and the community with an investment
+of *5.10 Million.
+Rural Development Programmes
+Model School Development Project
+<<94
+• Support in developing X-ray centre for treatment of
+underprivileged community at Vadodara, Gujarat
+• Kidney dialysis of poor patients from
+Maharashtra and Gujarat
+Our Corporate Social Responsibility initiatives focus on
+different thematic areas as per needs identified in local
+communities and aligned with areas mentioned in the
+Schedule VII of the Companies Act, 2013 read with the
+Companies (Corporate Social Responsibility Policy) Rules,
+2014. The focus areas are:
+• Healthcare Programmes
+• Education Programmes
+• Rural Development Programmes
+• Sanitation Programmes
+• Environment Conservation Programmes
+• Drinking Water Projects
+• Disaster Relief Programmes
+Healthcare Programmes
+Mobile Healthcare Unit Programme (MHU)
+Mobile Healthcare services are aimed at providing primary
+healthcare services at the doorstep of communities
+living in the vicinity of our manufacturing plant locations.
+Through its continuous efforts, the MHU is ensuring
+preventive vaccination and encouraging regular medical
+check-ups among the rural population. These services are
+provided free of cost through MHU's intervention.
+The Mobile Healthcare programme is operational in 11
+different locations covering 6 states of India namely
+Gujarat, Tamil Nadu, Punjab, Himachal Pradesh, Madhya
+Pradesh, and Maharashtra. During FY20, it benefitted
+209,725 persons including 144,343 curative treatment of
+patients through a total investment of *24.53 Million.
+Navya Online Expert Opinion Service Project
+We sponsored 500 cancer patients to receive expert
+opinions online from TMC-Navya (Tata Memorial Centre-
+Navya). These patients would not have otherwise had
+access to, or been able to afford, high-quality expert
+treatment plans to improve their chances of cure and
+quality of life. Navya Network provides expert opinions
+to cancer patient with an objective to impart low cost and
+effective treatment decisions while saving healthcare costs
+of the individual.
+The project has benefitted 100 socio-economically
+disadvantaged patients all over India by connecting them
+to leading cancer specialists at Tata Memorial Centre
+and other expert centres through an investment of *4.25
+Million during FY20.
+Healthcare Infrastructure Programmes
+Sun Pharma has been working on various health
+related programmes for upgradation in overall health
+infrastructure and service delivery. During the current
+fiscal, following projects were undertaken:
+Long-term growth is achieved by a combination of economic and equitable development, where the inclusive economic
+progress supports the creation of healthy and vibrant communities, which in turn feed the economy.
+• Waste production is minimised at the source itself
+• Waste materials including solvents, wastewater, glass,
+plastic liners, fibre drums, metal drum sheets, HDPE
+sheets and waste oil are recycled. Initiatives consist of
+setting up effluent treatment plants, recycling through
+registered recyclers and engaging scrap vendors for
+materials like paper, plastic, and HDPE
+• Social well-being: Generating additional earning
+opportunities for the local people
+Investments have been made in process improvements
+as well as upgradation of effluent treatment plants, using
+membrane-based technologies, multi-effect thermal
+evaporators, agitated thin film dryers and hazardous waste
+incinerators. These measures have helped to reduce the
+environmental burden.
+Recognition & Recreation
+Recognition and recreation are two great tools to create
+an environment where the employees feel inspired to go
+beyond their call of duty. A continuous and conscious
+effort to reward excellence in performance through
+various programmes has been consistently implemented
+across the company.
+Prompt and instant recognition is given to employees for
+exceptional performance through various recognition
+schemes. Regional and functional awards enable the
+acknowledgement of employees' involvement and inputs
+towards the realisation of goals.
+Some of the other mechanisms include:
+• Special celebration to accord due recognition to the
+retiring employee
+• Long-service award to recognise the loyalty and
+commitment of employees
+• Family picnics to foster camaraderie
+• EHS Promotional initiatives
+Inclusivity
+• Employees
+Neighbouring Communities
+• Patients
+• Healthcare Professionals
+• Investors & Shareholders
+• Vendors, Suppliers & Distributors
+• Government
+Including all stakeholders gives us a diversity of views
+regarding our policies, processes, and products. Whether
+minor or major, internal or external, all stakeholders who
+have an impact, direct or indirect, on our business are
+engaged. Some of the identified key stakeholders include:
+• Regulators
+• Use of Personal Protective Equipment (PPE)
+• Emergency Preparedness
+Health and Safety
+A healthy and safe workplace is a must. At Sun Pharma, we
+are fully committed to achieving excellence in Environment,
+Health & Safety (EHS) and conduct our activities in the
+most responsible manner. The importance of EHS is
+continually stressed and extensively promoted as a part
+of our corporate culture. As a part of this commitment,
+we enunciated our comprehensive EHS Policy
+way back in 1993.
+We have established ISO 14001:2015 compliant
+Environmental Management System and OHSAS
+18001:2007/ISO 45001:2018 (OHSMS) compliant
+Occupational Health and Safety Management System at
+our key manufacturing facilities.
+Close cooperation between all units and individuals is key
+to maintaining high standards of environment protection
+and safety at all the facilities. Safety training also plays
+a pivotal role in the awareness of all safety rules to be
+followed in operations, including when an emergency
+arises. The reporting year saw the safety and skill up-
+gradation training of approximately 90% of our employees,
+including 18% of permanent women employees.
+Reporting of accidents, injuries and near misses are
+encouraged as an accident prevention measures. We
+Principle 4 Stakeholder Engagement
+Stakeholder engagement is a win-win process. While the
+stakeholders' feedback gives us a good insight to plan our
+future strategy, our sharing gives the stakeholders a fair
+idea of our future direction. Emerging technologies are
+increasingly becoming important as a tool for enabling
+stakeholder engagement.
+• Safety Inspections & Audits
+A comprehensive engagement mechanism that involves
+all the stakeholders in decision-making, leads to a long-
+term relationship, understanding and trust with them.
+The three tenets of our engagement mechanism with our
+stakeholders are
+• Accountability
+• Responsibility
+formulate SOPs for the future, so that safer work practices
+can be adopted, and unsafe practices identified and
+discarded. The key ingredients of our occupational health
+and safety approach are:
+•
+With equipment installed at all our major facilities for
+recycling of the treated effluent, we have achieved the
+status of zero liquid discharge at majority of our facilities,
+while 6 are in the process of obtaining the status. SOPs are
+in place to ensure effective waste management. Some of
+the SOPs include:
+⚫ EHS Culture Building
+• Safety Risk Management
+• Inclusivity
+91 >>>
+EHS Management System
+Business Responsibility Report
+Principle 6 Environment
+As humans keep producing more for convenience and
+comfort, they are ironically progressing towards a time
+where clean air, fresh water, rich biodiversity and required
+natural resources are getting scarce.
+At Sun Pharma, we are aware of the emerging situation
+and investing in measures that mitigate this situation. Be
+it conservation measures or reducing our dependence on
+limited resources, we are not only reducing the burden on
+the environment, but also on our operational costs.
+A robust Environment, Health & Safety (EHS) policy is
+in place which is encouraging our employees to be more
+ecologically aware and our vigilant teams to be more
+cautious in pre-empting potential threats by developing
+relevant measures to address them.
+Some of our green steps which are a must-do:
+• Ensure statutory compliance
+• Optimise natural resources
+•
+Effect continuous improvement in
+environment management
+• Spread green awareness across internal and
+external stakeholders
+We also engage with the concerned authorities and
+industry in devising responsible laws, regulations,
+and standards.
+<92
+The Transformation Journey
+Annual Report 2019-20
+Some of our key green initiatives include:
+Waste Management
+Statutory Reports
+All these principles are followed in letter and in spirit. So, we are not only compliant with all the statutory laws and
+regulations, we also have grievance redressal mechanisms in place for violations, if any. In the reporting year, there were
+no human rights violation complaints, relating either to child, forced and involuntary labour or discriminatory employment
+against the Company. However, we did receive one complaint related to sexual harassment during the year, which
+has been resolved.
+Being present in various geographies, we adhere to this philosophy regardless of the nation, location, language, religion,
+ethnic origin, or any other status of any person. Our all-encompassing Human Rights Policy covering various principles
+ranging from freedom of association to freedom from harassment, applied across our operations is testament to
+our commitment.
+• Innovate greener technologies and processes
+Principle 5 Human Rights
+Accountability
+Human rights form the foundation of a fair society. Fundamental in nature and applicable universally, they require the rule
+of law as well as the empathy to understand the dignity of every human being.
+Since our decisions and actions affect our stakeholders,
+we are answerable to them. This responsibility helps in
+maintaining integrity and transparency. A continuous
+and consistent, two-way communication that includes
+sharing information and receiving feedback, leads
+to trust and synergy. Some of the means we use to
+communicate include:
+• Corporate Website
+• Annual Reports
+• Investor Presentations
+• Official Press Releases
+• Vendor Meets
+• Quarterly Reports
+• Dedicated Portals for Employees, Vendors
+and Field staff
+• Participation in Independent Exhibitions
+Social Media
+Responsibility
+For more details regarding this, please refer Principle 8
+of this report.
+Stakeholders influence our decisions and are also impacted
+by them. Various stakeholders have varying degrees of
+effect and we are committed to responsibly balance the
+interests of all stakeholders.
+• Customer Feedback Sessions
+Some may need time, some may require resource
+allocation, while others may need more engagement. The
+initiatives we design for them, takes into consideration all
+these differences, and provide what is required.
+8
+(a) The Company has maintained proper records showing full particulars, including quantitative details and situation
+of fixed assets.
+(b) All fixed assets have not been physically verified by management during the year but there is a regular
+programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the
+nature of its assets. No material discrepancies were noticed on such verification.
+(c) According to the information and explanations given by management, the title deeds of immovable properties,
+included in property, plant and equipment are held in the name of the Company, except for the following
+immovable properties for which registration of title deeds is in process:
+Type of asset
+Gross Block as on
+March 31, 2020
+(Million)
+Freehold Land including
+building located thereon
+Leasehold Land
+3
+238.11
+i.
+Total
+number of
+cases
+RE: SUN PHARMACEUTICAL INDUSTRIES LIMITED ('THE COMPANY')
+per PAUL ALVARES
+Partner
+Financial Statements
+101 >>>
+Place of Signature: Pune
+Date: May 27, 2020
+UDIN: 20105754AAAACS2010
+Membership No.: 105754
+ICAI Firm Registration Number: 324982E/E300003
+For S RBC & CO LLP
+Chartered Accountants
+by the Company, except a sum of *1.05
+Million, which is held in abeyance due to
+pending legal cases.
+272.35
+There has been no delay in transferring
+amounts, required to be transferred, to the
+Investor Education and Protection Fund
+Annexure 1 referred to in paragraph 1 under the heading "Report on Other
+Legal and Regulatory Requirements" of our report of even date
+Net Block as on
+March 31, 2020
+(*Million)
+Income Tax Act, 1961
+Remarks
+as required under the applicable law
+or accounting standards, for material
+foreseeable losses, if any, on long-term
+contracts including derivative contracts -
+Refer Note 25 and 29 to the standalone Ind
+AS financial statements;
+Excise Duty, Interest and Penalty
+Income Tax and Interest
+Income Tax, Interest and Penalty
+Income Tax, Interest and Penalty
+Nature of dues
+The Central Excise Act, 1944
+Income Tax Act, 1961
+Income Tax Act, 1961
+Name of the Statute
+(c) According to the records of the Company, the dues of income-tax, sales-tax, service tax, duty of custom, duty of
+excise, value added tax, goods and service tax and cess, wherever applicable and which have not been deposited
+on account of any dispute, are as follows:
+221.25
+where applicable were outstanding, at the year end, for a period of more than six months from the date they
+became payable.
+The Transformation Journey
+(b) According to the information and explanations
+given to us, no undisputed amounts payable
+in respect of provident fund, employees' state
+insurance, income-tax, service tax, sales-tax, duty
+of custom, duty of excise, value added tax, goods
+and service tax, cess and other statutory dues,
+(vii) (a) Undisputed statutory dues including provident
+fund, employees' state insurance, income-tax,
+sales-tax, service tax, duty of custom, duty of
+excise, value added tax, goods and service tax,
+cess and other statutory dues have generally
+been regularly deposited with the appropriate
+authorities though there has been a slight delay
+in a few cases.
+(vi) We have broadly reviewed the books of account
+maintained by the Company pursuant to the rules
+made by the Central Government for the maintenance
+of cost records under section 148(1) of the
+Companies Act, 2013, related to the manufacture of
+pharmaceutical products, and are of the opinion that
+prima facie, the specified accounts and records have
+been made and maintained. We have not, however,
+made a detailed examination of the same.
+(v) The Company has not accepted any deposits within
+the meaning of Sections 73 to 76 of the Act and the
+Companies (Acceptance of Deposits) Rules, 2014 (as
+amended). Accordingly, the provisions of clause 3(v)
+of the Order are not applicable to the Company and
+hence not commented upon.
+<102
+(iv) In our opinion and according to the information and
+explanations given to us, the Company has complied
+with the provisions of section 186 of the Act in
+respect of loans, making investments and providing
+guarantees and securities as applicable. During the
+year, the Company has not granted any loans to
+parties covered under section 185 of the Act.
+(iii) According to the information and explanations given
+to us, the Company has not granted any loans, secured
+or unsecured to companies, firms, Limited Liability
+Partnerships or other parties covered in the register
+maintained under section 189 of the Companies Act,
+2013. Accordingly, the provisions of clause 3(iii) (a), (b)
+and (c) of the Order are not applicable to the Company
+and hence not commented upon.
+(ii) The inventory has been physically verified by
+management during the year. In our opinion, the
+frequency of verification is reasonable. No material
+discrepancies were noticed on such physical
+verification. Inventories lying with third parties have
+been confirmed by them and no material discrepancies
+were noticed in respect of such confirmations.
+In respect of building where the Company is entitled
+to the right of occupancy and use and disclosed as
+property, plant and equipment in the standalone
+Ind AS financial statements, we report that the
+instrument entitling the right of occupancy and use
+of building, are in the name of the Company as at the
+balance sheet date.
+The title deeds are in the name of erstwhile companies that
+were merged with the Company under relevant provisions of
+270.49 the Companies Act, 1956/2013 in terms of approval of the
+Honorable High Courts of respective states.
+Annual Report 2019-20
+The Company has made provision,
+(II) Other income
+ii.
+As part of an audit in accordance with SAs, we exercise
+professional judgment and maintain professional skepticism
+throughout the audit. We also:
+Financial Statements
+99 >>
+Our objectives are to obtain reasonable assurance about
+whether the standalone Ind AS financial statements as a
+whole are free from material misstatement, whether due to
+fraud or error, and to issue an auditor's report that includes
+our opinion. Reasonable assurance is a high level of
+assurance, but is not a guarantee that an audit conducted
+in accordance with SAs will always detect a material
+misstatement when it exists. Misstatements can arise from
+fraud or error and are considered material if, individually
+or in the aggregate, they could reasonably be expected
+to influence the economic decisions of users taken on the
+basis of these standalone Ind AS financial statements.
+AUDITOR'S RESPONSIBILITIES FOR THE AUDIT
+OF THE STANDALONE IND AS FINANCIAL
+STATEMENTS
+The Board of Directors are also responsible for overseeing
+the Company's financial reporting process.
+In preparing the standalone Ind AS financial statements,
+management is responsible for assessing the Company's
+ability to continue as a going concern, disclosing, as
+applicable, matters related to going concern and using the
+going concern basis of accounting unless management
+either intends to liquidate the Company or to cease
+operations, or has no realistic alternative but to do so.
+frauds and other irregularities; selection and application
+of appropriate accounting policies; making judgments and
+estimates that are reasonable and prudent; and the design,
+implementation and maintenance of adequate internal
+financial controls, that were operating effectively for
+ensuring the accuracy and completeness of the accounting
+records, relevant to the preparation and presentation of
+the standalone Ind AS financial statements that give a true
+and fair view and are free from material misstatement,
+whether due to fraud or error.
+RESPONSIBILITIES OF MANAGEMENT FOR THE
+STANDALONE IND AS FINANCIAL STATEMENTS
+The Company's Board of Directors is responsible for
+the matters stated in section 134(5) of the Act with
+respect to the preparation of these standalone Ind AS
+financial statements that give a true and fair view of the
+financial position, financial performance including other
+comprehensive income, cash flows and changes in equity of
+the Company in accordance with the accounting principles
+generally accepted in India, including the Indian Accounting
+Standards (Ind AS) specified under section 133 of the Act
+read with the Companies (Indian Accounting Standards)
+Rules, 2015, as amended. This responsibility also includes
+maintenance of adequate accounting records in accordance
+with the provisions of the Act for safeguarding of the
+assets of the Company and for preventing and detecting
+In connection with our audit of the standalone Ind AS
+financial statements, our responsibility is to read the other
+information and, in doing so, consider whether such other
+information is materially inconsistent with the financial
+statements or our knowledge obtained in the audit or
+otherwise appears to be materially misstated. If, based on
+the work we have performed, we conclude that there is
+a material misstatement of this other information, we are
+required to report that fact. We have nothing to report
+in this regard.
+Our opinion on the standalone Ind AS financial statements
+does not cover the other information and we do not
+express any form of assurance conclusion thereon.
+• Identify and assess the risks of material misstatement of
+the standalone Ind AS financial statements, whether due
+to fraud or error, design and perform audit procedures
+responsive to those risks and obtain audit evidence
+that is sufficient and appropriate to provide a basis
+for our opinion. The risk of not detecting a material
+misstatement resulting from fraud is higher than for
+one resulting from error, as fraud may involve collusion,
+forgery, intentional omissions, misrepresentations, or
+the override of internal control.
+The Company's Board of Directors is responsible for the
+other information. The other information comprises the
+information included in the Annual report but does not
+include the standalone Ind AS financial statements and our
+auditor's report thereon.
+Regular inventory counts which are performed as at year-end could not
+be performed and hence alternative procedures have been performed
+and the inventory balances have been rolled back to year-end. The
+alternative procedures also involved, engaging independent Chartered
+Accountants to conduct post year-end stock counts and roll back
+procedures under our direction and supervision in locations where it
+was impracticable for us to do.
+Assessed the impact of COVID-19 on assumptions in matters involving
+use of significant judgements and estimations. Such matters are
+described in section Litigations & Tax litigations and recognition of
+deferred tax assets of our audit report.
+Revisited the assumptions in the ECL model to assess if any change was
+required to incorporate the impact of COVID-19.
+with customers and legal counsel to assess the appropriateness of the
+impact of such clauses.
+How our audit addressed the key audit matter
+•
+the lockdown restrictions caused by COVID-19 has also necessitated
+alternative audit procedures to be used and required us to exercise
+significant judgement on their use.
+Key audit matter
+Annual Report 2019-20
+The Transformation Journey
+Forum where the dispute
+is pending
+OTHER INFORMATION
+iii.
+Obtain an understanding of internal control relevant to
+the audit in order to design audit procedures that are
+appropriate in the circumstances. Under section 143(3)
+(i) of the Act, we are also responsible for expressing
+our opinion on whether the Company has adequate
+internal financial controls with reference to financial
+statements in place and the operating effectiveness
+of such controls.
+• Conclude on the appropriateness of management's use
+of the going concern basis of accounting and, based
+on the audit evidence obtained, whether a material
+uncertainty exists related to events or conditions
+that may cast significant doubt on the Company's
+ability to continue as a going concern. If we conclude
+that a material uncertainty exists, we are required to
+draw attention in our auditor's report to the related
+disclosures in the financial statements or, if such
+disclosures are inadequate, to modify our opinion. Our
+conclusions are based on the audit evidence obtained
+up to the date of our auditor's report. However, future
+events or conditions may cause the Company to cease
+to continue as a going concern.
+in its standalone Ind AS financial statements
+- Refer Note 39 to the standalone Ind AS
+financial statements;
+The Company has disclosed the impact of
+pending litigations on its financial position
+i.
+(h) With respect to the other matters to be included
+in the Auditor's Report in accordance with Rule
+11 of the Companies (Audit and Auditors) Rules,
+2014, as amended in our opinion and to the
+best of our information and according to the
+explanations given to us:
+(g) In our opinion, the managerial remuneration for
+the year ended March 31, 2020 has been paid/
+provided by the Company to its directors in
+accordance with the provisions of section 197
+read with Schedule V to the Act;
+With respect to the adequacy of the internal
+financial controls over financial reporting of the
+Company with reference to these standalone
+Ind AS financial statements and the operating
+effectiveness of such controls, refer to our
+separate report in "Annexure 2" to this report;
+(f)
+Annual Report 2019-20
+The Transformation Journey
+<100
+(e) On the basis of the written representations
+received from the directors as on March 31, 2020
+taken on record by the Board of Directors, none
+of the directors is disqualified as on March 31,
+2020 from being appointed as a director in terms
+of Section 164 (2) of the Act;
+• Evaluate the appropriateness of accounting policies used
+and the reasonableness of accounting estimates and
+related disclosures made by management.
+(d) In our opinion, the aforesaid standalone Ind AS
+financial statements comply with the Accounting
+Standards specified under Section 133 of the
+Act, read with Companies (Indian Accounting
+Standards) Rules, 2015, as amended;
+(b) In our opinion, proper books of account as
+required by law have been kept by the Company
+so far as it appears from our examination
+of those books;
+(a) We have sought and obtained all the information
+and explanations which to the best of our
+knowledge and belief were necessary for the
+purposes of our audit;
+As required by Section 143(3) of the Act,
+we report that:
+2.
+1. As required by the Companies (Auditor's Report)
+Order, 2016 ("the Order"), issued by the Central
+Government of India in terms of sub-section (11) of
+section 143 of the Act, we give in the "Annexure 1"
+a statement on the matters specified in paragraphs 3
+and 4 of the Order.
+REPORT ON OTHER LEGAL AND REGULATORY
+REQUIREMENTS
+From the matters communicated with those charged with
+governance, we determine those matters that were of most
+significance in the audit of the standalone Ind AS financial
+statements for the financial year ended March 31, 2020
+and are therefore the key audit matters. We describe these
+matters in our auditor's report unless law or regulation
+precludes public disclosure about the matter or when, in
+extremely rare circumstances, we determine that a matter
+should not be communicated in our report because the
+adverse consequences of doing so would reasonably
+be expected to outweigh the public interest benefits of
+such communication.
+communicate with them all relationships and other
+matters that may reasonably be thought to bear on our
+independence, and where applicable, related safeguards.
+We also provide those charged with governance with
+a statement that we have complied with relevant
+ethical requirements regarding independence, and to
+We communicate with those charged with governance
+regarding, among other matters, the planned scope and
+timing of the audit and significant audit findings, including
+any significant deficiencies in internal control that we
+identify during our audit.
+• Evaluate the overall presentation, structure and
+content of the standalone Ind AS financial statements,
+including the disclosures, and whether the standalone
+Ind AS financial statements represent the underlying
+transactions and events in a manner that achieves
+fair presentation.
+(c) The Balance Sheet, the Statement of Profit
+and Loss including the Statement of Other
+Comprehensive Income, the Cash Flow
+Statement and Statement of Changes in Equity
+dealt with by this Report are in agreement with
+the books of account;
+Income Tax Appellate
+Tribunal (ITAT)
+Year to which it pertains
+Various years from
+2006-07 to 2011-12
+5,529.5
+& 4
+Other expenses
+36
+35,140.8
+30,893.1
+Net loss on foreign currency transactions
+357.1
+2,130.4
+Total expenses (IV)
+107,898.5
+96,408.2
+(V) PROFIT BEFORE EXCEPTIONAL ITEM AND TAX (III - IV)
+32,530.0
+19,338.3
+(VI) Exceptional item
+56 (2)
+12,143.8
+(VII) PROFIT BEFORE TAX (V-VI)
+32,530.0
+7,194.5
+(VIII) TAX EXPENSE/(CREDIT)
+Current tax
+5,615.6
+Deferred tax
+3 (a), 3 (b)
+5,409.2
+15,109.2
+12,714.4
+140,428.5
+115,746.5
+(IV) EXPENSES
+Cost of materials consumed
+32
+32,017.1
+27,277.1
+Purchases of stock-in-trade
+12,274.1
+11,968.5
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+33
+1,386.0
+(2,513.0)
+Employee benefits expense
+34
+17,027.7
+15,713.4
+Finance costs
+35
+4,080.1
+Depreciation and amortisation expense
+31
+Total tax expense /(credit) (VIII)
+(X) OTHER COMPREHENSIVE INCOME
+C.
+Foreign currency translation reserve [gain/(loss)]
+B) Items that may be reclassified to the statement of profit or loss
+Effective portion of gain/(loss) on designated portion of
+hedging instruments in a cash flow hedge
+Income tax on above
+Gain/(loss) on debt instrument through other
+comprehensive income
+Income tax on above
+Income tax on above
+Total - (B)
+Total other comprehensive income (A+B) (X)
+(XI) TOTAL COMPREHENSIVE INCOME FOR THE YEAR (IX+X)
+Earnings per equity share (face value per equity share - ₹1)
+Basic (in)
+Diluted (in)
+The accompanying notes are an integral part of the standalone financial statements
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+b.
+(IX) PROFIT FOR THE YEAR (VII-VIII)
+a.
+(211.4)
+A) Items that will not be reclassified to the statement of profit or loss
+Gain/(loss) on remeasurement of the defined benefit plans
+38
+3,864.6
+15.5
+9 & 38
+(3,446.0)
+(987.0)
+418.6
+32,111.4
+(971.5)
+8,166.0
+a.
+(286.4)
+165.0
+Income tax on above
+100.1
+(57.7)
+b.
+Gain/(loss) on equity instrument through other comprehensive income
+Income tax on above
+(38.6)
+(52.1)
+13.5
+18.2
+Total - (A)
+73.4
+Pune, May 27, 2020
+103,032.1
+30
+148,705.2
+140,141.1
+132,718.3
+112,037.4
+Total liabilities
+Total current liabilities
+25,437.3
+10,979.4
+29
+(c) Provisions
+4,572.6
+6,437.2
+28
+(b) Other current liabilities
+36,878.7
+26,218.6
+27
+(iii) Other financial liabilities
+enterprises
+20,889.4
+659.8
+461.8
+22,887.1
+(b) total outstanding dues of creditors other than micro and small
+TOTAL EQUITY AND LIABILITIES
+45
+384,103.3
+The accompanying notes are an integral part of the standalone financial statements
+(I) Revenue from operations
+Particulars
+in Million
+for the year ended March 31, 2020
+Standalone Statement of Profit and Loss
+Standalone Statement of Profit and Loss | Standalone Statement of Changes in Equity
+Financial Statements
+107 >>>
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+(DIN: 00005588)
+Managing Director
+DILIP S. SHANGHVI
+SUNIL R. AJMERA
+Company Secretary
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Pune, May 27, 2020
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For SRBC & CO LLP
+As per our report of even date
+377,141.3
+125,319.3
+(a) total outstanding dues of micro and small enterprises
+44,280.5
+(1) Non-current liabilities
+Liabilities
+Total equity
+(b) Other equity
+(a) Equity share capital
+Equity
+EQUITY AND LIABILITIES
+Particulars
+as at March 31, 2020
+Standalone Balance Sheet
+The Transformation Journey
+<106
+377,141.3
+384,103.3
+TOTAL ASSETS
+111,697.7
+119,411.2
+Total current assets
+13,472.2
+8,824.6
+Notes
+Year ended
+March 31, 2020
+Year ended
+March 31, 2019
+(a) Financial liabilities
+(ii) Trade payables
+(i) Borrowings
+(b) Other non-current liabilities
+45,053.3
+26
+(i) Borrowings
+1,570.7
+15,986.9
+28,103.7
+181.0
+14,225.0
+10.2
+161.7
+1,455.5
+13,919.6
+12,566.9
+2222
+2,399.3
+226,036.8
+228,436.1
+2,399.3
+241,562.9
+243,962.2
+21
+20
+22
+As at
+March 31, 2019
+As at
+March 31, 2020
+Notes
+in Million
+Annual Report 2019-20
+(a) Financial liabilities
+(2) Current liabilities
+Total non-current liabilities
+(ii) Other financial liabilities
+(III) Total income (I + II)
+(929.2)
+324.7
+<104
+Our audit involves performing procedures to obtain audit
+evidence about the adequacy of the internal financial
+controls over financial reporting with reference to these
+standalone Ind AS financial statements and their operating
+effectiveness. Our audit of internal financial controls over
+financial reporting included obtaining an understanding
+of internal financial controls over financial reporting
+with reference to these standalone Ind AS financial
+statements, assessing the risk that a material weakness
+exists, and testing and evaluating the design and operating
+Our responsibility is to express an opinion on the
+Company's internal financial controls over financial
+reporting with reference to these standalone Ind AS
+financial statements based on our audit. We conducted
+our audit in accordance with the Guidance Note on Audit
+of Internal Financial Controls Over Financial Reporting
+(the "Guidance Note") and the Standards on Auditing as
+specified under section 143(10) of the Act, to the extent
+applicable to an audit of internal financial controls and,
+both issued by the Institute of Chartered Accountants of
+India. Those Standards and the Guidance Note require that
+we comply with ethical requirements and plan and perform
+the audit to obtain reasonable assurance about whether
+adequate internal financial controls over financial reporting
+with reference to these standalone Ind AS financial
+statements was established and maintained and if such
+controls operated effectively in all material respects.
+AUDITOR'S RESPONSIBILITY
+The Company's Management is responsible for establishing
+and maintaining internal financial controls based on the
+internal control over financial reporting criteria established
+by the Company considering the essential components
+of internal control stated in the Guidance Note on Audit
+of Internal Financial Controls Over Financial Reporting
+issued by the Institute of Chartered Accountants of India.
+These responsibilities include the design, implementation
+and maintenance of adequate internal financial controls
+that were operating effectively for ensuring the orderly
+and efficient conduct of its business, including adherence
+to the Company's policies, the safeguarding of its assets,
+the prevention and detection of frauds and errors, the
+accuracy and completeness of the accounting records, and
+the timely preparation of reliable financial information, as
+required under the Act.
+MANAGEMENT'S RESPONSIBILITY FOR
+INTERNAL FINANCIAL CONTROLS
+We have audited the internal financial controls over
+financial reporting of Sun Pharmaceutical Industries
+Limited ("the Company") as of March 31, 2020 in
+conjunction with our audit of the standalone Ind AS
+financial statements of the Company for the year
+ended on that date.
+REPORT ON THE INTERNAL FINANCIAL
+CONTROLS UNDER CLAUSE (I) OF SUB-SECTION
+3 OF SECTION 143 OF THE COMPANIES ACT,
+2013 ("THE ACT")
+Annexure 2 to the Independent Auditor's Report of even date on the Standalone
+Ind AS Financial Statements of Sun Pharmaceutical Industries Limited
+Place of Signature: Pune
+Date: May 27, 2020
+UDIN: 20105754AAAACS2010
+Membership No.: 105754
+per PAUL ALVARES
+Partner
+ICAI Firm Registration Number: 324982E/E300003
+For S RBC & CO LLP
+Chartered Accountants
+(xvi) According to the information and explanations
+given to us, the provisions of section 45-IA of the
+Reserve Bank of India Act, 1934 are not applicable
+to the Company.
+persons connected with him as referred to in section
+192 of the Act.
+(xv) According to the information and explanations given
+by management, the Company has not entered
+into any non-cash transactions with directors or
+(xiv) According to the information and explanations given
+to us and on an overall examination of the balance
+sheet, the Company has not made any preferential
+allotment or private placement of shares or fully or
+partly convertible debentures during the year under
+review and hence, reporting requirements under
+clause 3(xiv) of the Order are not applicable to the
+Company and hence not commented upon.
+given by management, transactions with the related
+parties are in compliance with section 177 and 188 of
+Companies Act, 2013 where applicable and the details
+have been disclosed in the notes to the standalone Ind
+AS financial statements, as required by the applicable
+accounting standards.
+(xiii) According to the information and explanations
+Financial Statements
+103 >>
+The Transformation Journey
+(xii) In our opinion, the Company is not a nidhi company.
+Therefore, the provisions of clause 3(xii) of the Order
+are not applicable to the Company and hence not
+commented upon.
+Annual Report 2019-20
+We believe that the audit evidence we have obtained is
+sufficient and appropriate to provide a basis for our audit
+opinion on the internal financial controls over financial
+reporting with reference to these standalone Ind AS
+financial statements.
+ASSETS
+Particulars
+Investments
+in Million
+Standalone Balance Sheet
+as at March 31, 2020
+Standalone Balance Sheet
+Financial Statements
+105 >>>
+Date: May 27, 2020
+Place of Signature: Pune
+UDIN: 20105754AAAACS2010
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration Number: 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+In our opinion, the Company has, in all material respects,
+adequate internal financial controls over financial reporting
+with reference to these standalone Ind AS financial
+statements and such internal financial controls over
+financial reporting with reference to these standalone
+Ind AS financial statements were operating effectively
+as at March 31, 2020, based on the internal control over
+financial reporting criteria established by the Company
+considering the essential components of internal control
+stated in the Guidance Note on Audit of Internal Financial
+Controls Over Financial Reporting issued by the Institute of
+Chartered Accountants of India.
+OPINION
+Because of the inherent limitations of internal financial
+controls over financial reporting with reference to these
+standalone Ind AS financial statements, including the
+possibility of collusion or improper management override
+of controls, material misstatements due to error or fraud
+may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial
+reporting with reference to these standalone Ind AS
+financial statements to future periods are subject to
+the risk that the internal financial control over financial
+reporting with reference to these standalone Ind AS
+financial statements may become inadequate because of
+changes in conditions, or that the degree of compliance
+with the policies or procedures may deteriorate.
+INHERENT LIMITATIONS OF INTERNAL
+FINANCIAL CONTROLS OVER FINANCIAL
+REPORTING WITH REFERENCE TO THESE
+FINANCIAL STATEMENTS
+MEANING OF INTERNAL FINANCIAL CONTROLS
+OVER FINANCIAL REPORTING WITH
+REFERENCE TO THESE FINANCIAL STATEMENTS
+A company's internal financial control over financial
+reporting with reference to these standalone Ind AS
+financial statements is a process designed to provide
+reasonable assurance regarding the reliability of financial
+reporting and the preparation of financial statements for
+external purposes in accordance with generally accepted
+accounting principles. A company's internal financial
+control over financial reporting with reference to these
+standalone Ind AS financial statements includes those
+policies and procedures that (1) pertain to the maintenance
+of records that, in reasonable detail, accurately and
+fairly reflect the transactions and dispositions of the
+assets of the company; (2) provide reasonable assurance
+that transactions are recorded as necessary to permit
+preparation of financial statements in accordance with
+generally accepted accounting principles, and that receipts
+and expenditures of the company are being made only
+in accordance with authorisations of management and
+directors of the company; and (3) provide reasonable
+assurance regarding prevention or timely detection
+of unauthorised acquisition, use, or disposition of the
+company's assets that could have a material effect on the
+financial statements.
+effectiveness of internal control based on the assessed
+risk. The procedures selected depend on the auditor's
+judgement, including the assessment of the risks of
+material misstatement of the financial statements, whether
+due to fraud or error.
+(1) Non-current assets
+(xi) According to the information and explanations given
+by management, managerial remuneration has been
+paid/provided in accordance with the requisite
+approvals mandated by the provisions of section 197
+read with Schedule V to the Companies Act, 2013.
+(x) Based upon the audit procedures performed for
+the purpose of reporting true and fair view of the
+financial statements and according to the information
+Customs, Excise and Service
+Tax Appellate Tribunal
+(CESTAT), Delhi
+Commissioner (Appeals)
+Assistant/Additional/Senior
+Joint Commissioner
+Appellate Authority
+High Court
+Sales Tax, Interest and Penalty
+Sales Tax, Interest and Penalty
+Service Tax
+Service Tax
+Excise Duty, Interest and Penalty
+Excise Duty, Interest and Penalty
+Sales Tax Act/VAT
+(Various States)
+Sales Tax Act/VAT
+(Various States)
+Sales Tax Act/VAT
+(Various States)
+Sales Tax Act/VAT
+(Various States)
+Custom Act, 1962
+Finance Act, 1994
+Finance Act, 1994
+The Central Excise Act, 1944
+The Central Excise Act, 1944
+Sales Tax, Interest and Penalty
+Sales Tax, Interest and Penalty
+41.55
+Various years from
+2007-08
+High Court
+2009-10 to 2014-15
+460.83
+Commissioner of Income Tax Various years from
+(Appeals)
+Amount
+(** Million)*
+12,566.32
+Various years from
+2003-04 to 2015-16
+and explanations given by management, we report
+that no fraud by the Company or no material fraud
+on the Company by the officers and employees
+of the Company has been noticed or reported
+during the year.
+699.78
+Tribunal
+(ix) In our opinion and according to the information and
+explanations given by management, the Company has
+utilized the monies raised by way of term loans for the
+purposes for which they were raised. The Company
+did not raise any money by way of initial public offer/
+further public offer/debt instruments.
+(viii) In our opinion and according to the information and
+explanations given by management, the Company
+has not defaulted in repayment of loans or borrowing
+to a financial institution, bank or Government. The
+Company did not have any outstanding dues to
+debenture holders during the year.
+*Amount includes interest till the date of demand and are net of advances paid/adjusted under protest.
+115.97
+2008-09 to 2014-15
+Various years from
+2010-11 to 2012-13
+CESTAT
+Customs Duty, Penalty and Interest
+Custom Act, 1962
+21.62
+Various years from
+Customs Duty, Penalty and Interest Commissioner (Appeals)
+1999-00 to 2010-11
+43.10
+Various years from
+High Court
+2.89
+1.90
+39.01
+2.29
+37.78
+4.88
+35.88
+Various years from
+2003-04 to 2017-18
+Various years from
+2003-04 to 2013-14
+Various years from
+2004-05 to 2017-18
+Various years from
+2013-14 to 2015-16
+Various years from
+1999-00 to 2016-17
+Various years from
+1998-99 to 2015-16
+Various years from
+1998-99 to 2013-14
+Assistant/Additional/Senior
+Joint Commissioner
+CESTAT
+535.2
+(a) Property, plant and equipment
+(c) Goodwill
+11,150.1
+7,584.2
+18
+(vi) Other financial assets
+2,947.3
+4,485.9
+17
+(v) Loans
+380.1
+4,342.8
+16
+(iv) Bank balances other than (iii) above
+3,027.6
+2,205.0
+15
+(iii) Cash and cash equivalents
+50,314.7
+61,681.3
+14
+(ii) Trade receivables
+2,479.5
+3,950.7
+13
+(c) Other current assets
+27,926.2
+19
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+(187.0)
+12.1
+2.9
+(4.2)
+(1.0)
+2,173.4
+(759.5)
+(596.6)
+1,764.0
+(808.0)
+1,837.4
+31,303.4
+10,003.4
+46
+13.4
+13.4
+3.4
+3.4
+SUNIL R. AJMERA
+Company Secretary
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+<108
+26,336.7
+12
+265,443.6
+4
+4,562.5
+3,843.5
+47,092.1
+49,103.1
+3 (a) & 3 (b)
+As at
+March 31, 2019
+As at
+March 31, 2020
+Notes
+(i)
+(b) Financial assets
+(a) Inventories
+(2) Current assets
+Total non-current assets
+(h) Deferred tax assets (Net)
+(i) Income tax assets (Net)
+Other non-current assets
+(iii) Other financial assets
+(ii) Loans
+Investments
+(i)
+(g) Financial assets
+(f) Investments in the nature of equity in subsidiaries
+(e) Intangible assets under development
+(d) Other Intangible assets
+1,208.0
+1,208.0
+4
+1,976.3
+264,692.1
+3,498.1
+3,738.1
+11
+21,101.2
+20,780.2
+10
+546.1
+7,517.0
+11,397.1
+9
+849.3
+(b) Capital work-in-progress
+8
+7.4
+653.9
+85.4
+67
+175,907.7
+169,581.1
+5
+1,862.9
+2,122.6
+1,484.1
+10.0
+(c) Provisions
+All financial liabilities are subsequently measured
+at amortised cost using the effective interest
+method or at FVTPL.
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL
+when the financial liability is held for trading or
+is designated upon initial recognition as at fair
+value through profit or loss. Financial liabilities are
+classified as held for trading if they are incurred
+principally for the purpose of repurchasing in the
+near term or on initial recognition it is part of a
+portfolio of identified financial instruments that the
+Company manages together and has a recent actual
+pattern of short-term profit-taking. This category
+also includes derivative financial instruments that
+are not designated as hedging instruments in hedge
+relationships as defined by Ind AS 109. Gains or
+losses on liabilities held for trading are recognised
+in the profit or loss.
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+Interest received
+Fixed deposits/margin money matured
+(3,077.0)
+(278.6)
+Fixed deposits/margin money placed
+168,834.8
+8,580.4
+8,570.9
+147,862.4
+(170,975.8)
+(148,662.5)
+303.3
+820.0
+128.2
+(2,934.3)
+(500.0)
+(1,508.7)
+Bank balances not considered as cash and cash equivalents
+Others
+Subsidiary companies
+551.5
+3,173.0
+283.5
+1,192.0
+15,340.9
+34,178.4
+71,362.2
+Others @
+Subsidiary companies @
+Repayment of borrowings
+Others
+Subsidiary company
+Proceeds from borrowings
+Proceeds from sale/redemption of investments
+3.8
+C. Cash flow from financing activities
+4,764.5
+0.0
+4,336.9
+14,792.9
+Net cash from investing activities (B)
+Others (March 31, 2019: 30,000)
+13,500.7
+Subsidiary companies
+Dividend received from
+Proceeds from issue of equity shares on exercise of stock options/share application money
+received
+155,882.9
+Others
+Others
+(4,376.9)
+4.5
+15,677.5
+(4,012.0)
+940.6
+(10,222.7)
+(1,302.3)
+2,975.3
+1,698.5
+(9,217.2)
+(6,569.8)
+1,589.5
+11,681.1
+5,202.8
+366.9
+(2,502.9)
+2,399.4
+30,359.1
+(Decrease)/increase in other liabilities
+(Decrease)/increase in provisions
+(Decrease)/increase in trade payables
+Cash generated from operations
+16,429.1
+12,796.1
+Income tax paid (net of refund)
+Subsidiary companies
+Received back/matured from
+Others
+Subsidiary companies
+Given to
+Loans/Inter corporate deposits
+123.1
+63.5
+Purchase of investments
+Proceeds from disposal of property, plant and equipment and intangible assets
+(5,718.0)
+Payments for purchase of property, plant and equipment (including capital work-in-progress,
+intangible assets and intangible assets under development)
+B. Cash flow from investing activities
+12,421.8
+13,058.5
+Net cash generated from operating activities (A)
+(374.3)
+(3,370.6)
+(5,967.1)
+(22,670.7)
+(21,390.6)
+(90,001.1)
+Year ended March 31, 2019
+Borrowings
+Year ended March 31, 2020
+Derivatives, net
+[(Liabilities)/Asset]
+Borrowings *
+in Million
+3,023.3
+4.3
+3,027.6
+2,197.0
+8.0
+2,205.0
+in Million
+As at
+March 31, 2019
+As at
+March 31, 2020
+Other changes
+Changes in fair value
+Effect of changes in foreign exchange rates
+Changes from financing cash flows
+Opening balance
+Particulars
+Change in financial liability/asset arising from financing activities
+Cash and cash equivalents in cash flow statement (Refer Note 15)
+Derivatives, net
+[(Liabilities)/Asset]
+64,366.4
+(6,833.0)
+214.7
+(228.7)
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the standalone financial statements
+# For movement of lease liabilities, Refer Note 48
+Closing balance
+214.7
+455.2
+64,366.4
+Cash on hand
+(161.7)
+73.7
+2,277.7
+14.0
+(161.7)
+3,767.7
+(827.8)
+(7,206.6)
+754.1
+68,840.1
+214.7
+In current accounts
+Balances with banks
+Particulars
+in Million
+Annual Report 2019-20
+@ Includes payment of lease obligation for the year ended March 31, 2020.
+Cash and cash equivalents at the end of the year
+Effect of exchange differences on restatement of foreign currency cash and cash equivalents
+Cash and cash equivalents at the beginning of the year
+Net increase/decrease) in cash and cash equivalents (A+B+C)
+Net cash used in financing activities (C)
+Year ended
+March 31, 2020
+Dividend distribution tax
+Finance costs
+Transfer to escrow account for buy-back
+Payment for share buy-back expenses
+Particulars
+for the year ended March 31, 2020
+Standalone Cash Flow Statement
+The Transformation Journey
+<110
+(157,039.8)
+Dividend paid
+(Increase)/decrease in other assets
+Year ended
+(4,250.0)
+Cash and cash equivalents comprises of
+Notes:
+* Represents amount transferred to escrow account in compliance with Securities and Exchange Board of India (Buy-back of Securities) Regulation,
+2018. [Refer Note 56 (8)]
+3,027.6
+(23.2)
+37.5
+2,205.0
+978.0
+2,072.8
+March 31, 2019
+(860.1)
+3,027.6
+(28,711.5)
+(5.6)
+(1,928.9)
+(4,801.8)
+(13,791.9)
+(2,675.7)
+(1,550.7)
+(58.8)
+(14,685.9)
+ICAI Firm Registration No. : 324982E/E300003
+(Increase)/decrease in trade receivables
+Movements in working capital:
+Balance as at March 31, 2019
+Issue of equity shares
+(5.6)
+(5.6)
+Dividend distribution tax
+(4,791.6)
+(4,791.6)
+Payment of dividend
+10,003.4
+348.2
+1,413.9
+1.9
+(33.9)
+8,273.3
+1,837.4
+348.2
+1,413.9
+@ 0.0
+2,399.3
+53,575.2
+3.8
+11,932.9
+3.8
+31,925.1
+Total comprehensive income for the year
+(808.0)
+(604.5)
+7.9
+(25.1)
+^ (186.3)
+Other comprehensive income for the year
+1.9
+32,111.4
+Profit for the year
+348.2 228,436.1
+1,485.9
+(8.2)
+26.1
+34,779.3 123,846.1
+7.5
+43.8
+32,111.4
+(25.1)
+(33.9)
+Other comprehensive income for the year
+Total comprehensive income for the year
+General
+reserve
+reserve
+Equity
+Capital
+redemption
+Securities Amalgamation
+premium
+Capital
+reserve
+Effective
+Foreign
+Equity
+share
+capital
+Particulars
+Other comprehensive income (OCI)
+Reserve and surplus
+Other equity
+The Transformation Journey
+* in Million
+for the year ended March 31, 2020
+Standalone Statement of Changes in Equity
+Retained
+earnings
+instrument
+reserve
+through OCI
+8,166.0
+8,166.0
+Profit for the year
+223,226.1
+72.0
+(10.1)
+60.0
+34,779.3 120,370.0
+^ 107.3
+7.5
+53,575.2 11,929.1
+2,399.3
+Balance as at March 31, 2018
+cash flow
+hedges
+Total
+portion of
+currency
+translation
+reserve
+Debt
+instrument
+through OCI
+43.8
+7.9
+(604.5)
+31,303.4
+5,409.2
+4,080.1
+341.0
+5,529.5
+5,615.6
+51.0
+7,194.5
+Year ended
+March 31, 2019
+32,530.0
+Year ended
+March 31, 2020
+Dividend income on investments
+Interest income
+Loss on sale/write off of property, plant and equipment and intangible assets, net
+Finance costs
+Depreciation and amortisation expense
+Adjustments for:
+Profit before tax
+A. Cash flow from operating activities
+Particulars
+(700.6)
+(1,293.6)
+(9,258.3)
+(8,909.3)
+Operating profit before working capital changes
+Effect of exchange rate changes
+Provision/(reversal) in respect of losses of a subsidiary
+(35.6)
+(147.0)
+535.4
+(17.3)
+Sundry balances written back, net
+Provision/write off/(reversal) for doubtful trade receivables/advances
+in Million
+(1,862.4)
+Gain on sale of investment in subsidiary
+0.1
+(0.4)
+(113.0)
+(121.4)
+(2.0)
+(7.2)
+Net gain arising on financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net (gain)/loss on sale of financial assets measured at fair value through other comprehensive
+income
+(2,244.3)
+Standalone Cash Flow Statement
+for the year ended March 31, 2020
+Standalone Cash Flow Statement
+(0.3) 1,485.9
+1.0
+34,779.3 140,052.7
+7.5
+43.8
+53,575.2 11,874.1
+2,399.3
+Balance as at March 31, 2020
+(256.3) 243,962.2
+[Refer Note 56(8)]
+(58.8)
+Expenditure on buy-back of shares
+(1,928.9)
+(1,928.9)
+Dividend distribution tax
+(13,789.6)
+(13,789.6)
+Payment of dividend
+(58.8)
+(Increase)/decrease in inventories
+^ Represents remeasurements of the defined benefit plans
+The accompanying notes are an integral part of the standalone financial statements
+Financial Statements
+Annual Report 2019-20
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+(DIN: 00005588)
+Managing Director
+DILIP S. SHANGHVI
+SUNIL R. AJMERA
+Company Secretary
+Sun Pharmaceutical Industries Limited
+@: 11,790
+For and on behalf of the Board of Directors of
+Pune, May 27, 2020
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+109 >>>
+per PAUL ALVARES
+545.9
+61,847.0
+Membership No.: 105754
+a) The objective of the business model is achieved
+both by collecting contractual cash flows and
+selling the financial assets, and
+A 'debt instrument' is measured as at FVTOCI if
+both of the following criteria are met:
+Debt instrument at FVTOCI
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+The Transformation Journey
+<<116
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost
+is calculated by taking into account any discount or
+premium on acquisition and fees or costs that are
+an integral part of the EIR. The EIR amortisation is
+included in Other Income in the profit or loss. The
+losses arising from impairment are recognised in
+the profit or loss.
+b) Contractual terms of the asset give rise on
+specified dates to cash flows that are solely
+payments of principal and interest (SPPI) on the
+principal amount outstanding.
+a) The asset is held within a business model
+whose objective is to hold assets for collecting
+contractual cash flows, and
+A 'debt instrument' is measured at the amortised
+cost if both the following conditions are met:
+Debt instruments at amortised cost
+⚫ Equity instruments measured at fair value
+through other comprehensive income (FVTOCI)
+• Debt instruments and equity instruments at fair
+value through profit or loss (FVTPL)
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+• Debt instruments at amortised cost
+For purposes of subsequent measurement, financial
+assets are classified in four categories:
+Subsequent measurement
+All financial assets are recognised initially at
+fair value plus, in the case of financial assets
+not recorded at fair value through profit or loss,
+transaction costs that are attributable to the
+acquisition of the financial asset. Purchases or sales
+of financial assets that require delivery of assets
+within a time frame established by regulation or
+convention in the market place (regular way trades)
+are recognised on the date the Company commits
+to purchase or sale the financial assets.
+Initial recognition and measurement
+Financial assets
+A financial instrument is any contract that gives
+rise to a financial asset of one entity and a financial
+liability or equity instrument of another entity.
+b) The contractual terms of the instrument give
+rise on specified dates to cash flows that are
+SPPI on the principal amount outstanding.
+i. Financial instruments
+Debt instruments included within the FVTOCI
+category are measured initially as well as at each
+reporting date at fair value. Fair value movements
+are recognised in the other comprehensive income
+(OCI). However, the Company recognises interest
+income, impairment losses & reversals and foreign
+exchange gain or loss in the profit or loss. On
+derecognition of the asset, cumulative gain or loss
+previously recognised in OCI is reclassified from
+the equity to profit or loss. Interest earned whilst
+holding FVTOCI debt instrument is reported as
+interest income using the EIR method.
+FVTPL is a residual category for debt instruments.
+Any debt instrument, which does not meet the
+criteria for categorisation as at amortised cost or as
+FVTOCI, is classified as at FVTPL.
+The Company follows 'simplified approach' for
+recognition of impairment loss allowance on trade
+receivables or any contractual right to receive cash
+or another financial asset.
+In accordance with Ind AS 109, the Company
+applies expected credit loss (ECL) model for
+measurement and recognition of impairment
+loss on the Trade receivables or any contractual
+right to receive cash or another financial asset
+that result from transactions that are within the
+scope of Ind AS 115.
+Impairment of financial assets
+On derecognition of a financial asset in its entirety,
+the difference between the asset's carrying amount
+and the sum of the consideration received and
+receivable and the cumulative gain or loss that had
+been recognised in OCI and accumulated in equity
+is recognised in profit or loss if such gain or loss
+would have otherwise been recognised in profit or
+loss on disposal of that financial asset.
+K118
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+Financial Statements
+117 >>>
+a basis that reflects the rights and obligations that
+the Company has retained.
+When the Company has transferred its rights to
+receive cash flows from an asset or has entered
+into a pass-through arrangement, it evaluates if and
+to what extent it has retained the risks and rewards
+of ownership. When it has neither transferred nor
+retained substantially all of the risks and rewards of
+the asset, nor transferred control of the asset, the
+Company continues to recognise the transferred
+asset to the extent of the Company's continuing
+involvement. In that case, the Company also
+recognises an associated liability. The transferred
+asset and the associated liability are measured on
+• The Company has transferred its rights to
+receive contractual cash flows from the asset or
+has assumed an obligation to pay the received
+cash flows in full without material delay to a
+third party under a 'pass-through' arrangement,
+and either (a) the Company has transferred
+substantially all the risks and rewards of the
+asset, or (b) the Company has neither transferred
+nor retained substantially all the risks and
+rewards of the asset, but has transferred
+control of the asset.
+• The contractual rights to receive cash flows from
+the asset have expired, or
+A financial asset (or, where applicable, a part of a
+financial asset or part of a group of similar financial
+assets) is primarily derecognised (i.e. removed from
+the Company's balance sheet) when:
+Derecognition
+Equity instruments included within the FVTPL
+category are measured at fair value with all changes
+recognised in the profit or loss.
+If the Company decides to classify an equity
+instrument as at FVTOCI, then all fair value
+changes on the instrument, including foreign
+exchange gain or loss and excluding dividends, are
+recognised in the OCI. There is no recycling of the
+amounts from OCI to profit or loss, even on sale of
+investment. However, the Company may transfer
+the cumulative gain or loss within equity.
+by-instrument basis. The classification is made on
+initial recognition and is irrevocable.
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which
+are held for trading are classified as at FVTPL.
+For all other equity instruments, the Company
+may make an irrevocable election to present
+subsequent changes in the fair value in OCI. The
+Company makes such election on an instrument-
+Equity instruments
+Debt instruments included within the FVTPL
+category are measured at fair value with all the
+changes in the profit or loss.
+In addition, the Company may elect to designate
+a debt instrument, which otherwise meets
+amortised cost or FVTOCI criteria, as at FVTPL.
+However, such election is allowed only if
+doing so reduces or eliminates a measurement
+or recognition inconsistency (referred to as
+'accounting mismatch').
+Debt instrument at FVTPL
+Non-current assets (and disposal groups) classified
+as held for sale are measured at the lower of
+their carrying amount and fair value less costs
+to sell. Non-current assets held for sale are not
+depreciated or amortised.
+Non-current assets and disposal groups are
+classified as held for sale if their carrying amount
+will be recovered principally through a sale
+transaction rather than through continuing use.
+This condition is regarded as met only when the
+asset (or disposal group) is available for immediate
+sale in its present condition subject only to terms
+that are usual and customary for sales of such asset
+(or disposal group) and its sale is highly probable.
+Management must be committed to the sale, which
+should be expected to qualify for recognition as a
+completed sale within one year from the date of
+classification.
+h. Non-current assets held for sale
+⚫ the Company intends to and has sufficient
+resources/ability to complete development and
+to use or sell the asset.
+⚫ future economic benefits are probable; and
+⚫ the product or process is technically and
+commercially feasible;
+⚫ development costs can be measured reliably;
+Expenditure on research activities undertaken with
+the prospect of gaining new scientific or technical
+knowledge and understanding are recognised as
+an expense when incurred. Development activities
+involve a plan or design for the production of new
+or substantially improved products and processes.
+An internally-generated intangible asset arising
+from development is recognised if and only if all of
+the following have been demonstrated:
+Research and development
+Other Intangible assets that are acquired by the
+Company and that have finite useful lives are
+measured at cost less accumulated amortisation
+and accumulated impairment losses, if any.
+Subsequent expenditures are capitalised only
+when they increase the future economic benefits
+embodied in the specific asset to which they relate.
+Other Intangible assets
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-
+controlling interest in the acquiree, over the fair
+value of the Company's share of identifiable net
+assets acquired. Goodwill is measured at cost less
+accumulated impairment losses.
+Goodwill
+e. Goodwill and Other Intangible assets
+Software for internal use, which is primarily
+acquired from third-party vendors and which
+is an integral part of a tangible asset, including
+consultancy charges for implementing the
+software, is capitalised as part of the related
+tangible asset. Subsequent costs associated with
+maintaining such software are recognised as
+expense as incurred. The capitalised costs are
+amortised over the lower of the estimated useful
+life of the software and the remaining useful life of
+the tangible fixed asset.
+Furniture and fixtures
+10
+2-5
+Office equipment
+5-10
+Vehicles
+3-25
+Plant and equipment
+30
+Buildings given under operating lease
+60
+The Transformation Journey
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+In respect of other asset, impairment losses
+recognised in prior periods are assessed at each
+reporting date for any indications that the loss
+has decreased or no longer exists. An impairment
+loss is reversed if there has been a change in the
+estimates used to determine the recoverable
+amount. An impairment loss is reversed only to the
+extent that the asset's carrying amount does not
+exceed the carrying amount that would have been
+determined, net of depreciation or amortisation, if
+no impairment loss had been recognised.
+Goodwill is tested for impairment annually.
+Goodwill acquired in a business combination, for
+the purpose of impairment testing is allocated to
+cash-generating units that are expected to benefit
+from the synergies of the combination.
+An impairment loss is recognised in the profit or
+loss if the estimated recoverable amount of an
+asset or its cash generating unit is lower than its
+carrying amount. Impairment losses recognised in
+respect of cash-generating units are allocated to
+reduce the carrying amount of the other assets in
+the unit on a pro-rata basis.
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+Financial Statements
+115 >>>
+The recoverable amount of an asset or cash-
+generating unit (as defined below) is the greater
+of its value in use and its fair value less costs to
+sell. In assessing value in use, the estimated future
+cash flows are discounted to their present value
+using a pre-tax discount rate that reflects current
+market assessments of the time value of money
+and the risks specific to the asset or the cash-
+generating unit for which the estimates of future
+cash flows have not been adjusted. For the purpose
+of impairment testing, assets are grouped together
+into the smallest group of assets that generates
+cash inflows from continuing use that are largely
+independent of the cash inflows of other assets or
+groups of assets (the "cash-generating unit").
+The carrying amounts of the Company's non-
+financial assets are reviewed at each reporting date
+to determine whether there is any indication of
+impairment. If any such indication exists, then the
+asset's recoverable amount is estimated in order to
+determine the extent of the impairment loss, if any.
+g. Impairment of non-financial assets
+The application of simplified approach does not
+require the Company to track changes in credit risk.
+Rather, it recognises impairment loss allowance
+based on lifetime ECLs at each reporting date,
+right from its initial recognition. As a practical
+expedient, the Company uses a provision matrix to
+determine impairment loss allowance on portfolio
+of its trade receivables. The provision matrix is
+based on its historically observed default rates over
+the expected life of the trade receivables and is
+adjusted for forward-looking estimates. At every
+reporting date, the historical observed default rates
+are updated and changes in the forward-looking
+estimates are analysed.
+The Company has elected to recognise its
+investments in equity instruments in subsidiaries
+and associates at cost in the separate financial
+statements in accordance with the option available
+in Ind AS 27, 'Separate Financial Statements'.
+Impairment policy applicable on such investments
+is explained in Note 2.2.g.
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits
+are expected from their use. Gain or loss arising
+on such de-recognition is recognised in profit or
+loss, and are measured as the difference between
+the net disposal proceeds, if any, and the carrying
+amount of respective intangible assets as on the
+date of de-recognition.
+De-recognition of intangible assets
+The estimated useful life and amortisation method
+are reviewed at the end of each reporting period,
+with the effect of any changes in estimate being
+accounted for on a prospective basis.
+The estimated useful lives for Product related
+intangibles and Other intangibles ranges
+from 3 to 20 years.
+Partner
+Amortisation is recognised on a straight-line basis
+over the estimated useful lives of intangible assets.
+Intangible assets that are not available for use are
+amortised from the date they are available for use.
+Subsequent expenditures are capitalised only
+when they increase the future economic benefits
+embodied in the specific asset to which they relate.
+All other expenditures, including expenditures
+on internally generated goodwill and brands,
+are recognised in the statement of profit and
+loss as incurred.
+The consideration for acquisition of intangible asset
+which is based on reaching specific milestone that
+are dependent on the Company's future activity
+is recognised only when the activity requiring the
+payment is performed.
+Acquired research and development intangible
+assets which are under development, are
+recognised as In-Process Research and
+Development assets ("IPR&D"). IPR&D assets
+are not amortised, but evaluated for potential
+impairment on an annual basis or when there are
+indications that the carrying value may not be
+recoverable. Any impairment charge on such IPR&D
+assets is recognised in profit or loss. Intangible
+assets relating to products under development,
+other intangible assets not available for use and
+intangible assets having indefinite useful life are
+tested for impairment annually, or more frequently
+when there is an indication that the assets may be
+impaired. All other intangible assets are tested for
+impairment when there are indications that the
+carrying value may not be recoverable.
+Payments to third parties that generally take the
+form of up-front payments and milestones for
+in-licensed products, compounds and intellectual
+property are capitalised since the probability of
+expected future economic benefits criterion is
+always considered to be satisfied for separately
+acquired intangible assets.
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable
+to preparing the asset for its intended use. Other
+development expenditure is recognised in profit or
+loss as incurred.
+f. Investments in the nature of equity in subsidiaries and
+associates
+Classification as debt or equity
+Financial liabilities and equity instruments
+Equity instruments
+a. Current vs. Non-current
+The Company presents assets and liabilities
+in the balance sheet based on current/non-
+current classification. An asset is treated as
+current when it is:
+• Expected to be realised or intended to be sold or
+consumed in normal operating cycle
+<112
+The Transformation Journey
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+Held primarily for the purpose of trading
+• Expected to be realised within twelve months after
+the reporting period, or
+• Cash or cash equivalent unless restricted from
+being exchanged or used to settle a liability for at
+least twelve months after the reporting period
+All other assets are classified as non-current.
+A liability is current when:
+⚫ It is expected to be settled in normal
+operating cycle
+●It is held primarily for the purpose of trading
+⚫ It is due to be settled within twelve months after
+the reporting period, or
+• There is no unconditional right to defer the
+settlement of the liability for at least twelve months
+after the reporting period
+The Company classifies all other liabilities
+as non-current.
+Deferred tax assets and liabilities are classified as non-
+current assets and liabilities.
+The operating cycle is the time between the
+acquisition of assets for processing and their
+realisation in cash and cash equivalents. The Company
+has identified twelve months as its operating cycle.
+b. Foreign currency
+On initial recognition, transactions in currencies
+other than the Company's functional currency
+(foreign currencies) are translated at exchange rates
+on the date of the transactions. Monetary assets
+and liabilities denominated in foreign currencies at
+the reporting date are translated into the functional
+currency at the exchange rate on that date.
+Exchange differences arising on the settlement of
+monetary items or on translating monetary items
+at rates different from those at which they were
+translated on initial recognition during the period
+or in previous period are recognised in profit or loss
+in the period in which they arise except for:
+Debt and equity instruments issued by the
+Company are classified as either financial liabilities
+or as equity in accordance with the substance of
+the contractual arrangements and the definitions of
+a financial liability and an equity instrument.
+The Company has consistently applied the following
+accounting policies to all periods presented in these
+financial statements except for the policy described
+in (j) below which has been applied from the period
+beginning April 01, 2019.
+• Level 3 inputs are unobservable inputs for the
+asset or liability.
+• Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the
+asset or liability, either directly or indirectly; and
+• Level 1 inputs are quoted prices (unadjusted) in
+active markets for identical assets or liabilities that
+the entity can access at the measurement date;
+Pune, May 27, 2020
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+SUNIL R. AJMERA
+Company Secretary
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+111 >>
+Financial Statements
+Notes to the Standalone Financial Statements
+for future productive use, which are included in
+the cost of those assets when they are regarded
+as an adjustment to interest costs on those foreign
+currency borrowings (see note 2.2.r).
+Notes to the Standalone Financial Statements
+NOTE 1. GENERAL INFORMATION
+Sun Pharmaceutical Industries Limited ("the Company")
+is a public limited company incorporated and domiciled
+in India, having it's registered office at Vadodara, Gujarat,
+India and is listed on the Bombay Stock Exchange Limited
+and National Stock Exchange of India Limited. The
+Company is in the business of manufacturing, developing
+and marketing a wide range of branded and generic
+formulations and Active Pharmaceutical Ingredients (APIs).
+The Company has various manufacturing locations spread
+across the country with trading and other incidental and
+related activities extending to the global markets.
+The standalone financial statement were authorised for
+issue in accordance with a resolution of the directors
+on May 27, 2020.
+NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
+2.1 Statement of compliance
+These financial statements are separate financial
+statements of the Company (also called standalone
+financial statements). The Company has prepared
+financial statements for the year ended March 31,
+2020 in accordance with Indian Accounting Standards
+(Ind AS) notified under the Companies (Indian
+Accounting Standards) Rules, 2015 (as amended)
+together with the comparative period data as at and
+for the year ended March 31, 2019.
+2.2 Basis of preparation and presentation
+The financial statements have been prepared on the
+historical cost basis, except for: (i) certain financial
+instruments that are measured at fair values at the
+end of each reporting period; (ii) Non-current assets
+classified as held for sale which are measured at the
+lower of their carrying amount and fair value less
+costs to sell; (iii) derivative financial instrument and (iv)
+defined benefit plans - plan assets that are measured
+at fair values at the end of each reporting period, as
+explained in the accounting policies below.
+Historical cost is generally based on the fair
+value of the consideration given in exchange for
+goods and services.
+The standalone financial statements are presented
+in and all values are rounded to the nearest
+Million (*000,000) upto one decimal, except when
+otherwise indicated.
+Fair value is the price that would be received to sell
+an asset or paid to transfer a liability in an orderly
+transaction between market participants at the
+measurement date, regardless of whether that price
+is directly observable or estimated using another
+valuation technique. In estimating the fair value of an
+asset or a liability, the Company takes into account
+the characteristics of the asset or liability if market
+participants would take those characteristics into
+account when pricing the asset or liability at the
+measurement date. Fair value for measurement and/
+or disclosure purposes in these financial statements
+is determined on such a basis, except for share-based
+payment transactions that are within the scope of
+Ind AS 102, leasing transactions that are within the
+scope of Ind AS 116, and measurements that have
+some similarities to fair value but are not fair value,
+such as net realisable value in Ind AS 2 or value in
+use in Ind AS 36.
+In addition, for financial reporting purposes, fair
+value measurements are categorised into Level 1,
+2, or 3 based on the degree to which the inputs
+to the fair value measurements are observable
+and the significance of the inputs to the fair
+value measurement in its entirety, which are
+described as follows:
+for the year ended March 31, 2020
+• exchange differences on transactions entered into
+in order to hedge certain foreign currency risks (see
+note 2.2.i below for hedging accounting policies).
+• exchange differences on foreign currency
+borrowings relating to assets under construction
+Non-monetary items that are measured in
+terms of historical cost in foreign currency are
+measured using the exchange rates at the date of
+initial transaction.
+Subsequent measurement
+The Company's financial liabilities include trade
+and other payables, loans and borrowings
+including bank overdrafts and lease liabilities,
+financial guarantee contracts and derivative
+financial instruments.
+All financial liabilities are recognised initially at
+fair value and, in the case of loans and borrowings
+and payables, net of directly attributable
+transaction costs.
+Initial recognition and measurement
+The component parts of compound financial
+instruments (convertible notes) issued by the
+Company are classified separately as financial
+liabilities and equity in accordance with the
+substance of the contractual arrangements
+and the definitions of a financial liability and an
+equity instrument.
+Compound financial instruments
+Repurchase of the Company's own equity
+instruments is recognised and deducted directly in
+equity. No gain or loss is recognised in profit or loss
+on the purchase, sale, issue or cancellation of the
+Company's own equity instruments.
+issued by the Company are recognised at the
+proceeds received, net of direct issue costs.
+• exchange differences relating to the translation of
+the results and the net assets of the Company's
+foreign operations from their functional currencies
+to the Company's presentation currency (i.e *) are
+recognised directly in the other comprehensive
+income and accumulated in foreign currency
+translation reserve. Exchange difference in the
+foreign currency translation reserve are reclassified
+to statement of profit or loss account on the
+disposal of the foreign operation.
+An equity instrument is any contract that evidences
+a residual interest in the assets of an entity after
+deducting all of its liabilities. Equity instruments
+Buildings other than Factory Buildings
+10-30
+Factory Buildings
+Asset Category
+The estimated useful lives are as follows:
+No. of years
+Items of property, plant and equipment acquired
+through exchange of non-monetary assets are
+measured at fair value, unless the exchange
+transaction lacks commercial substance or the fair
+value of either the asset received or asset given
+up is not reliably measurable, in which case the
+acquired asset is measured at the carrying amount
+of the asset given up.
+c. Segment reporting
+Operating segments are reported in a manner
+consistent with the internal reporting provided
+to the chief operating decision maker. The chief
+operating decision maker of the Company is
+responsible for allocating resources and assessing
+performance of the operating segments.
+d. Property, plant and equipment
+Items of property, plant and equipment are
+stated in balance sheet at cost less accumulated
+depreciation and accumulated impairment losses, if
+any. Freehold land is not depreciated.
+Assets in the course of construction for
+production, supply or administrative purposes are
+carried at cost, less any recognised impairment
+loss. Cost includes purchase price, borrowing
+costs if capitalisation criteria are met and directly
+attributable cost of bringing the asset to its working
+condition for the intended use. Subsequent
+expenditures are capitalised only when they
+increase the future economic benefits embodied
+in the specific asset to which they relate. Such
+assets are classified to the appropriate categories
+of property, plant and equipment when completed
+and ready for intended use. Depreciation of
+113 >>>
+Financial Statements
+Notes to the Standalone Financial Statements
+Depreciation is recognised on the cost of assets
+(other than freehold land and Capital work-in-
+progress) less their residual values on straight-
+line method over their useful lives as indicated
+in Part C of Schedule II of the Companies Act,
+2013. Leasehold improvements are depreciated
+over period of the lease agreement or the useful
+life, whichever is shorter. Depreciation methods,
+useful lives and residual values are reviewed at
+the end of each reporting period, with the effect
+of any changes in estimate accounted for on a
+prospective basis.
+Notes to the Standalone Financial Statements
+<<114
+these assets, on the same basis as other assets,
+commences when the assets are ready for
+their intended use.
+When parts of an item of property, plant and
+equipment have different useful lives, they
+are accounted for as separate items (major
+components) of property, plant and equipment.
+An item of property, plant and equipment is
+derecognised upon disposal or when no future
+economic benefits are expected to arise from
+the continued use of the asset. Any gain or loss
+arising on the disposal or retirement of an item of
+property, plant and equipment is determined as
+the difference between the sales proceeds and the
+carrying amount of property, plant and equipment
+and is recognised in profit or loss.
+for the year ended March 31, 2020
+The Company applies a single recognition and
+measurement approach for all leases, except
+for short-term leases and leases of low-value
+assets. The Company recognises lease liabilities
+to make lease payments and right-of-use assets
+representing the right to use the underlying assets.
+j. Leases
+The Company assesses at contract inception
+whether a contract is, or contains, a lease. That is, if
+the contract conveys the right to control the use of
+an identified asset for a period of time in exchange
+for consideration. To assess whether a contract
+conveys the right to control the use of an identified
+asset, the Company assesses whether: (i) the
+contract involves the use of an identified asset (ii)
+the Company has substantially all of the economic
+benefits from use of the asset through the period
+of the lease and (iii) the Company has the right to
+direct the use of the asset.
+Company as a lessee
+Treasury shares
+K120
+Annual Report 2019-20
+• Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable
+to a particular risk associated with a recognised
+asset or liability or a highly probable forecast
+transaction or the foreign currency risk in an
+unrecognised firm commitment.
+Notes to the Standalone Financial Statements
+Derivative financial instruments and hedge accounting
+Initial recognition and subsequent measurement
+The Company uses derivative financial instruments,
+such as forward currency contracts, full currency
+swap, principal only swap, options and interest
+rate swaps to hedge its foreign currency risks and
+interest rate risks respectively. Such derivative
+financial instruments are initially recognised at fair
+value on the date on which a derivative contract
+is entered into and are subsequently re-measured
+at fair value at the end of each reporting period.
+Derivatives are carried as financial assets when the
+fair value is positive and as financial liabilities when
+the fair value is negative.
+Any gains or losses arising from changes in the
+fair value of derivatives are taken directly to profit
+or loss, except for the effective portion of cash
+flow hedges, which is recognised in OCI and later
+reclassified to profit or loss when the hedge item
+affects profit or loss or treated as basis adjustment
+if a hedged forecast transaction subsequently
+results in the recognition of a non-financial asset or
+non-financial liability.
+For the purpose of hedge accounting, hedges
+are classified as:
+• Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+At the inception of a hedge relationship, the
+Company formally designates and documents the
+hedge relationship to which the Company wishes to
+apply hedge accounting and the risk management
+objective and strategy for undertaking the hedge.
+The documentation includes the Company's
+risk management objective and strategy for
+undertaking hedge, the hedging/economic
+relationship, the hedged item or transaction, the
+nature of the risk being hedged, hedge ratio and
+for the year ended March 31, 2020
+how the entity will assess the effectiveness of
+changes in the hedging instrument's fair value in
+offsetting the exposure to changes in the hedged
+item's fair value or cash flows attributable to the
+hedged risk. Such hedges are expected to be highly
+effective in achieving offsetting changes in fair
+value or cash flows and are assessed on an ongoing
+basis to determine that they actually have been
+highly effective throughout the financial reporting
+periods for which they were designated.
+(i) Fair value hedges
+Changes in fair value of the designated portion
+of derivatives that qualify as fair value hedges
+are recognised in profit or loss immediately,
+together with any changes in the fair value of
+the hedged asset or liability that are attributable
+to the hedged risk.
+(ii) Cash flow hedges
+The effective portion of changes in the fair
+value of the hedging instrument is recognised in
+OCI in the cash flow hedge reserve, while any
+ineffective portion is recognised immediately
+in profit or loss. The Company uses forward
+currency contracts as hedges of its exposure to
+foreign currency risk in forecast transactions
+and firm commitments. Amounts recognised as
+OCI are transferred to profit or loss when the
+hedged transaction affects profit or loss, such as
+when a forecast sale occurs. When the hedged
+item is the cost of a non-financial asset or non-
+financial liability, the amounts recognised as OCI
+are transferred to the initial carrying amount of
+the non-financial asset or liability.
+If the hedging instrument expires or is sold,
+terminated or exercised or if its designation as a
+hedge is revoked, or when the hedge no longer
+meets the criteria for hedge accounting, any
+cumulative gain or loss previously recognised
+in OCI remains separately in equity until the
+forecast transaction occurs or the foreign
+currency firm commitment is met. When a
+forecast transaction is no longer expected to
+occur, the gain or loss accumulated in equity is
+recognised immediately in profit or loss.
+The Transformation Journey
+Hedges that meet the strict criteria for hedge
+accounting are accounted for, as described below:
+i) Right-of-use assets
+A provision for restructuring is recognised when
+the Company has a detailed formal restructuring
+plan and has raised a valid expectation in those
+affected that it will carry out the restructuring
+by starting to implement the plan or announcing
+its main features to those affected by it. The
+measurement of a restructuring provision
+includes only the direct expenditure arising from
+the restructuring, which are those amounts
+that are both necessarily entailed by the
+restructuring and not associated with the ongoing
+activities of the entity.
+The Company recognises right-of-use assets at
+the commencement date of the lease (i.e., the
+date the underlying asset is available for use).
+Right-of-use assets are measured at cost, less
+any accumulated depreciation and impairment
+losses, and adjusted for any remeasurement
+of lease liabilities. The cost of right-of-use
+assets includes the amount of lease liabilities
+recognised, initial direct costs incurred,
+and lease payments made at or before the
+commencement date less any lease incentives
+received. Right-of-use assets are depreciated
+on a straight-line basis over the shorter of the
+lease term and the estimated useful lives of the
+assets, as follows:
+Defined contribution plans
+The Company's contributions to defined
+contribution plans are recognised as an expense
+as and when the services are received from the
+employees entitling them to the contributions. The
+Company does not have any obligation other than
+the contribution made.
+125 >>>
+Financial Statements
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+The Company's net obligation in respect of other
+long term employee benefits is the amount of
+future benefit that employees have earned in
+return for their service in the current and previous
+periods. That benefit is discounted to determine
+its present value.
+for the year ended March 31, 2020
+The grant date fair value of options granted to
+employees is recognised as an employee expense,
+with a corresponding increase in equity, on a
+straight line basis, over the vesting period, based on
+the Company's estimate of equity instruments that
+will eventually vest. At the end of each reporting
+period, the Company revises its estimate of the
+number of equity instruments expected to vest.
+The impact of the revision of the original estimates,
+if any, is recognised in profit or loss such that the
+cumulative expense reflects the revised estimate,
+with a corresponding adjustment to the equity-
+settled employee benefits reserve.
+For cash-settled share-based payments, a liability
+is recognised for the goods or services acquired,
+measured initially at the fair value of the liability. At
+the end of each reporting period until the liability is
+settled, and at the date of settlement, the fair value
+of the liability is remeasured, with any changes in
+fair value recognised in profit or loss for the year.
+r. Borrowing costs
+Borrowing costs that are directly attributable to
+the construction or production of a qualifying asset
+are capitalised as part of the cost of that asset. All
+other borrowing costs are expensed in the period
+in which they occur. Borrowing costs consist of
+interest and other costs that an entity incurs in
+connection with the borrowing of funds. Borrowing
+cost also includes exchange differences to the
+extent regarded as an adjustment to the borrowing
+costs. A qualifying asset is one that necessarily
+takes substantial period of time to get ready for
+its intended use.
+s. Income tax
+Income tax expense consists of current and
+deferred tax. Income tax expense is recognised in
+profit or loss except to the extent that it relates
+to items recognised in OCI or directly in equity,
+in which case it is recognised in OCI or directly in
+equity respectively. Current tax is the expected
+tax payable on the taxable profit for the year, using
+tax rates enacted or substantively enacted by the
+end of the reporting period, and any adjustment
+to tax payable in respect of previous years.
+Current tax assets and tax liabilities are offset
+where the Company has a legally enforceable
+right to offset and intends either to settle on a net
+Share-based payment arrangements
+basis, or to realise the asset and settle the liability
+simultaneously.
+The Company treats accumulated leave expected
+to be carried forward beyond twelve months, as
+long-term employee benefit for measurement
+purposes. Such long-term compensated absences
+are provided for based on the actuarial valuation
+using the projected unit credit method at the
+year-end. Actuarial gains/losses are immediately
+taken to the statement of profit and loss and
+are not deferred.
+Termination benefits are recognised as an expense
+in the statement of profit and loss when the
+Company is demonstrably committed, without
+realistic possibility of withdrawal, to a formal
+detailed plan to either terminate employment
+before the normal retirement date, or to provide
+termination benefits as a result of an offer made
+to encourage voluntary redundancy. Termination
+benefits for voluntary redundancies are recognised
+as an expense in the statement of profit and loss
+if the Company has made an offer encouraging
+voluntary redundancy, it is probable that the offer
+will be accepted, and the number of acceptances
+can be estimated reliably.
+Interest income from a financial asset is recognised
+when it is probable that the economic benefits
+will flow to the Company and the amount of
+The Transformation Journey
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+income can be measured reliably. Interest income
+is accrued on a time basis, by reference to the
+principal outstanding and at the effective interest
+rate applicable, which is the rate that exactly
+discounts estimated future cash receipts through
+the expected life of the financial asset to that
+asset's net carrying amount on initial recognition.
+Short-term and Other long-term employee benefits
+Accumulated leave, which is expected to be utilised
+within the next 12 months, is treated as short-term
+employee benefit. The Company measures the
+expected cost of such absences as the additional
+amount that it expects to pay as a result of the
+unused entitlement that has accumulated at the
+reporting date.
+p. Government grants
+q. Employee benefits
+Defined benefit plans
+The Company operates a defined benefit gratuity
+plan which requires contribution to be made to a
+separately administered fund.
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method
+with actuarial valuations being carried out at
+the end of each annual reporting period. The
+present value of the defined benefit obligation is
+determined by discounting the estimated future
+cash outflows by reference to market yields at the
+end of the reporting period on government bonds.
+The currency and term of the government bonds
+shall be consistent with the currency and estimated
+term of the post-employment benefit obligations.
+The current service cost of the defined benefit
+plan, recognised in the profit or loss as employee
+benefits expense, reflects the increase in the
+defined benefit obligation resulting from employee
+service in the current year, benefit changes,
+curtailments and settlements. Past service costs
+are recognised in profit or loss in the period of a
+plan amendment. The net interest cost is calculated
+by applying the discount rate to the net balance
+of the defined benefit obligation and the fair value
+of plan assets. This cost is included in employee
+benefit expense in profit or loss. Actuarial gains
+and losses arising from experience adjustments
+and changes in actuarial assumptions are charged
+or credited to OCI in the period in which they arise
+and is reflected immediately in retained earnings
+and is not reclassified to profit or loss.
+Termination benefits
+The Company recognises government grants
+only when there is reasonable assurance that
+the conditions attached to them will be complied
+with, and the grants will be received. When the
+grant relates to an expense item, it is recognised
+as income on a systematic basis over the periods
+that the related costs, for which it is intended to
+compensate, are expensed. When the grant relates
+to an asset, the Company deducts such grant
+amount from the carrying amount of the asset.
+Dividend income is recognised when the
+Company's right to receive the payment is
+established, which is generally when shareholders
+approve the dividend.
+Deferred tax is recognised on temporary
+differences between the carrying amounts of
+assets and liabilities in the financial statements
+and the corresponding tax bases used in the
+computation of taxable profit.
+The Company recognises a deferred tax asset
+arising from unused tax losses or tax credits only
+to the extent that the entity has sufficient taxable
+temporary differences or there is convincing other
+evidence that sufficient taxable profit will be
+available against which the unused tax losses or
+unused tax credits can be utilised by the entity.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+128
+acquiree's identifiable net assets. Transaction
+costs that the Company incurs in connection with
+a business combination, such as finder's fees, legal
+fees, due diligence fees and other professional and
+consulting fees, are expensed as incurred.
+If the business combination is achieved in stages,
+any previously held equity interest is re-measured
+at its acquisition date fair value and any resulting
+gain or loss is recognised in profit or loss or OCI,
+as appropriate.
+If the initial accounting for a business combination
+is incomplete by the end of the reporting period
+in which the combination occurs, the Company
+reports provisional amounts for the items for which
+the accounting is incomplete. Those provisional
+amounts are adjusted during the measurement
+period (see above), or additional assets or liabilities
+are recognised, to reflect new information obtained
+about facts and circumstances that existed at the
+acquisition date that, if known, would have affected
+the amounts recognised at that date.
+Notes to the Standalone Financial Statements
+Business Combination involving entities or
+businesses under common control shall be
+accounted for using the pooling of interest method.
+Exceptional items refer to items of income or
+expense, including tax items, within the statement
+of profit and loss from ordinary activities which
+are non-recurring and are of such size, nature
+or incidence that their separate disclosure is
+considered necessary to explain the performance
+of the Company.
+w. Recent Accounting pronouncements
+Standards issued but not yet effective and not
+early adopted by the Company
+The Ministry of Corporate Affairs ("MCA") notifies
+new standard or amendments to the existing
+standards. There is no such notification which
+would have been applicable from April 1, 2020.
+The Company has created an Employee Benefit
+Trust (EBT) for providing share-based payment to
+its employees. The Company uses EBT as a vehicle
+for distributing shares to employees under the
+employee remuneration schemes. The Company
+treats EBT as its extension and shares held by EBT
+are treated as treasury shares.
+for the year ended March 31, 2020
+v. Exceptional items
+Deferred tax is measured at the tax rates that
+are expected to be applied to the temporary
+differences when they reverse, based on the laws
+that have been enacted or substantively enacted
+by the end of the reporting period. Deferred tax
+assets and liabilities are offset if there is a legally
+enforceable right to set off corresponding current
+tax assets against current tax liabilities and the
+deferred tax assets and deferred tax liabilities
+relate to income taxes levied by the same tax
+authority on the Company.
+Financial Statements
+A contingent liability of the acquiree is assumed
+in a business combination only if such a liability
+represents a present obligation and arises from
+a past event, and its fair value can be measured
+reliably. On an acquisition-by-acquisition basis, the
+Company recognises any non-controlling interest
+in the acquiree either at fair value or at the non-
+controlling interest's proportionate share of the
+A deferred tax asset is recognised to the extent
+that it is probable that future taxable profits will be
+available against which the temporary difference
+can be utilised. Deferred tax assets are reviewed at
+each reporting date and are reduced to the extent
+that it is no longer probable that the related tax
+benefit will be realised. Withholding tax arising out
+of payment of dividends to shareholders under the
+Indian Income tax regulations is not considered as
+tax expense for the Company and all such taxes are
+recognised in the statement of changes in equity as
+part of the associated dividend payment.
+Minimum Alternate Tax ('MAT') credit is recognised
+as deferred tax asset only when and to the extent
+there is convincing evidence that the Company
+will pay normal income tax during the period for
+which the MAT credit can be carried forward for
+set-off against the normal tax liability. MAT credit
+recognised as an asset is reviewed at each Balance
+Sheet date and written down to the extent the
+aforesaid convincing evidence no longer exists.
+<126
+The Transformation Journey
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+127 »
+Annual Report 2019-20
+t. Earnings per share
+The Company presents basic and diluted earnings
+per share ("EPS") data for its equity shares.
+Basic EPS is calculated by dividing the profit or
+loss attributable to equity shareholders of the
+Company by the weighted average number of
+equity shares outstanding during the period.
+Diluted EPS is determined by adjusting the profit
+or loss attributable to equity shareholders and
+the weighted average number of equity shares
+outstanding for the effects of all dilutive potential
+ordinary shares, which includes all stock options
+granted to employees.
+The number of equity shares and potentially
+dilutive equity shares are adjusted retrospectively
+for all periods presented for any share splits and
+bonus shares issues including for changes effected
+prior to the approval of the financial statements by
+the Board of Directors.
+u. Business combination
+The Company uses the acquisition method of
+accounting to account for business combinations
+that occurred on or after April 01, 2015. The
+acquisition date is generally the date on which
+control is transferred to the acquirer. Judgment
+is applied in determining the acquisition date and
+determining whether control is transferred from
+one party to another. Control exists when the
+Company is exposed to, or has rights to, variable
+returns from its involvement with the entity and
+has the ability to affect those returns through
+power over the entity. In assessing control,
+potential voting rights are considered only if the
+rights are substantive. The Company measures
+goodwill as of the applicable acquisition date at
+the fair value of the consideration transferred,
+including the recognised amount of any non-
+controlling interest in the acquiree and the fair
+value of the acquirer's previously held equity
+interest in the acquiree (if any), less the net
+recognised amount of the identifiable assets
+acquired and liabilities assumed. When the fair
+value of the net identifiable assets acquired and
+liabilities assumed exceeds the consideration
+transferred, a bargain purchase gain is recognised
+immediately in the OCI and accumulates the same
+in equity as Capital Reserve where there exists
+clear evidence of the underlying reasons for
+classifying the business combination as a bargain
+purchase else the gain is directly recognised
+in equity as Capital Reserve. Consideration
+transferred includes the fair values of the assets
+transferred, liabilities incurred by the Company to
+the previous owners of the acquiree, and equity
+interests issued by the Company. Consideration
+transferred also includes the fair value of any
+contingent consideration. Changes in the fair
+value of the contingent consideration that qualify
+as measurement period adjustments are adjusted
+retrospectively, with corresponding adjustments
+against goodwill or capital reserve, as the case
+maybe. The subsequent accounting for changes in
+the fair value of the contingent consideration that
+do not qualify as measurement period adjustments
+depends on how the contingent consideration
+is classified. Contingent consideration that is
+classified as equity is not remeasured at subsequent
+reporting dates and its subsequent settlement
+is accounted for within equity. Contingent
+consideration that is classified as an asset or a
+liability is remeasured at fair value at subsequent
+reporting dates with the corresponding gain or loss
+being recognised in profit or loss. Consideration
+transferred does not include amounts related to
+settlement of pre-existing relationships.
+Accruals for uncertain tax positions require
+management to make judgments of potential
+exposures. Accruals for uncertain tax positions are
+measured using either the most likely amount or
+the expected value amount depending on which
+method the entity expects to better predict the
+resolution of the uncertainty. Tax benefits are not
+recognised unless the management based upon its
+interpretation of applicable laws and regulations
+and the expectation of how the tax authority will
+resolve the matter concludes that such benefits will
+be accepted by the authorities. Once considered
+probable of not being accepted, management
+reviews each material tax benefit and reflects the
+effect of the uncertainty in determining the related
+taxable amounts.
+o. Dividend and interest income
+Royalty revenue is recognised on an accrual
+basis in accordance with the substance of
+the relevant agreement (provided that it is
+probable that economic benefits will flow to
+the Company and the amount of revenue can
+be measured reliably). Royalty arrangements
+that are based on production, sales and other
+measures are recognised by reference to the
+underlying arrangement.
+Royalties
+Cost of raw materials and packing materials,
+stock-in-trade, stores and spares includes cost of
+purchases and other costs incurred in bringing the
+inventories to its present location and condition.
+Cost of work-in-progress and finished goods
+comprises direct material, direct labour and an
+appropriate proportion of variable and fixed
+overhead expenditure.
+Net realisable value is the estimated selling
+price in the ordinary course of business, less the
+estimated costs of completion and costs necessary
+to make the sale.
+The factors that the Company considers in
+determining the allowance for slow moving,
+obsolete and other non-saleable inventory
+include estimated shelf life, planned product
+discontinuances, price changes, ageing of inventory
+and introduction of competitive new products,
+to the extent each of these factors impact the
+Company's business and markets. The Company
+considers all these factors and adjusts the
+inventory provision to reflect its actual experience
+on a periodic basis.
+I. Cash and cash equivalents
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade, stores
+and spares and finished goods are measured at
+the lower of cost and net realisable value. The
+cost of all categories of inventories is based on the
+weighted average method.
+Cash and cash equivalents in the balance sheet
+comprise cash at banks and on hand and short-term
+deposits with an original maturity of three months
+or less, which are subject to an insignificant risk of
+changes in value.
+m. Provisions, contingent liabilities and contingent assets
+Provisions are recognised when the Company has
+a present obligation (legal or constructive) as a
+result of past event, it is probable that an outflow
+of resources embodying economic benefits will
+be required to settle the obligation and a reliable
+estimate can be made of the amount of obligation.
+When the Company expects some or all of a
+provision to be reimbursed, for example, under
+an insurance contract, the reimbursement is
+recognised as a separate asset, but only when the
+reimbursement is certain. The expense relating to
+a provision is presented in the statement of profit
+and loss net of any reimbursement.
+If the effect of the time value of money is material,
+provisions are determined by discounting the
+expected future cash flows at a pre-tax rate that
+<122
+The Transformation Journey
+Notes to the Standalone Financial Statements
+For the purpose of the statement of cash flows,
+cash and cash equivalents consist of cash and
+short-term deposits, as defined above, net
+of outstanding bank overdrafts as they are
+considered an integral part of the Company's
+cash management.
+for the year ended March 31, 2020
+k. Inventories
+Company as a lessor
+Building
+Plant and Machinery
+Leasehold land
+2-10 years
+10-25 years
+60-99 years
+The right-of-use assets are also subject to
+impairment. Refer to the accounting policies in
+section (g) Impairment of non-financial assets.
+ii) Lease Liabilities
+At the commencement date of the lease, the
+Company recognises lease liabilities measured
+at the present value of lease payments to be
+made over the lease term. The lease payments
+include fixed payments (including insubstance
+fixed payments) less any lease incentives
+receivable, variable lease payments that depend
+on an index or a rate, and amounts expected
+to be paid under residual value guarantees.
+The lease payments also include the exercise
+price of a purchase option reasonably certain
+to be exercised by the Company and payments
+of penalties for terminating the lease, if the
+lease term reflects the Company exercising the
+option to terminate.
+Rental income from operating lease is generally
+recognised on a straight-line basis over the term
+of the relevant lease. Where the rentals are
+structured solely to increase in line with expected
+general inflation to compensate for the Company's
+expected inflationary cost increases, such increases
+are recognised in the year in which such benefits
+accrue. Initial direct costs incurred in negotiating
+and arranging an operating lease are added to the
+carrying amount of the leased asset and recognised
+over the lease term on the same basis as rental
+income. Contingent rents are recognised as
+revenue in the period in which they are earned.
+In calculating the present value of lease
+payments, the Company uses its incremental
+borrowing rate at the lease commencement
+date because the interest rate implicit in the
+lease is not readily determinable. After the
+commencement date, the amount of lease
+liabilities is increased to reflect the accretion
+of interest and reduced for the lease payments
+made. In addition, the carrying amount of lease
+Financial Statements
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+liabilities is remeasured if there is a modification,
+a change in the lease term, a change in the lease
+payments (e.g., changes to future payments
+resulting from a change in an index or rate used
+to determine such lease payments) or a change
+in the assessment of an option to purchase the
+underlying asset.
+iii) Short-term leases and leases of low-value assets
+The Company applies the short-term lease
+recognition exemption to its short-term leases
+(i.e., those leases that have a lease term of 12
+months or less from the commencement date
+and do not contain a purchase option). It also
+applies the lease of low-value assets recognition
+exemption to leases that are considered to be
+low value. Lease payments on short-term leases
+and leases of low-value assets are recognised
+as expense on a straight-line basis over
+the lease term.
+121 >>>
+Annual Report 2019-20
+reflects current market assessments of the time
+value of money and the risks specific to the liability.
+Where discounting is used, the increase in the
+provision due to the passage of time is recognised
+as a finance cost.
+Restructuring
+Out-licensing arrangements
+Revenues include amounts derived from product
+out-licensing agreements. These arrangements
+typically consist of an initial up-front payment on
+inception of the license and subsequent payments
+dependent on achieving certain milestones in
+accordance with the terms prescribed in the
+agreement. Non-refundable up-front license fees
+received in connection with product out-licensing
+agreements are deferred and recognised over
+the period in which the Company has continuing
+performance obligations. Milestone payments
+which are contingent on achieving certain clinical
+milestones are recognised as revenues either on
+achievement of such milestones, if the milestones
+are considered substantive, or over the period the
+Company has continuing performance obligations,
+if the milestones are not considered substantive. If
+milestone payments are creditable against future
+royalty payments, the milestones are deferred and
+released over the period in which the royalties are
+anticipated to be received.
+Sales returns
+The Company accounts for sales returns accrual
+by recording an allowance for sales returns
+concurrent with the recognition of revenue at the
+time of a product sale. This allowance is based
+on the Company's estimate of expected sales
+returns. With respect to established products,
+the Company considers its historical experience
+of sales returns, levels of inventory in the
+distribution channel, estimated shelf life, product
+discontinuances, price changes of competitive
+products, and the introduction of competitive
+new products, to the extent each of these factors
+impact the Company's business and markets.
+With respect to new products introduced by the
+Company, such products have historically been
+either extensions of an existing line of product
+where the Company has historical experience or in
+therapeutic categories where established products
+exist and are sold either by the Company or the
+Company's competitors.
+Contract balances
+Contract assets
+K124
+A contract asset is the right to consideration in
+exchange for goods or services transferred to the
+customer. If the Company performs by transferring
+goods or services to a customer before the
+Trade receivables
+A receivable represents the Company's right to
+an amount of consideration that is unconditional
+(i.e., only the passage of time is required before
+payment of the consideration is due).
+Contract liabilities
+A contract liability is the obligation to transfer
+goods or services to a customer for which the
+Company has received consideration (or an amount
+of consideration is due) from the customer. If a
+customer pays consideration before the Company
+transfers goods or services to the customer, a
+contract liability is recognised when the payment is
+made or the payment is due (whichever is earlier).
+Contract liabilities are recognised as revenue when
+the Company performs under the contract.
+Rendering of services
+Revenue from services rendered is recognised in
+the profit or loss as the underlying services are
+performed. Upfront non-refundable payments
+received are deferred and recognised as revenue
+over the expected period over which the related
+services are expected to be performed.
+customer pays consideration or before payment is
+due, a contract asset is recognised for the earned
+consideration that is conditional.
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+Onerous contracts
+Present obligations arising under onerous contracts
+are recognised and measured as provisions. An
+onerous contract is considered to exist where
+the Company has a contract under which the
+unavoidable costs of meeting the obligations under
+the contract exceed the economic benefit expected
+to be received from the contract.
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+(i) Possible obligations which will be confirmed only
+by future events not wholly within the control of
+the Company, or
+(ii) Present obligations arising from past events
+where it is not probable that an outflow
+of resources will be required to settle the
+obligation or a reliable estimate of the amount of
+the obligation cannot be made.
+Contingent assets are not recognised in the
+financial statements. A contingent asset is disclosed
+where an inflow of economic benefits is probable.
+Contingent assets are assessed continually
+and, if it is virtually certain that an inflow of
+economic benefits will arise, the asset and related
+income are recognised in the period in which
+the change occurs.
+n. Revenue
+Sale of goods
+Revenue from contracts with customers is
+recognised when control of the goods or services
+are transferred to the customer at an amount that
+reflects the consideration to which the Company
+expects to be entitled in exchange for those goods
+or services. The Company has generally concluded
+that it is the principal in its revenue arrangements,
+since it is the primary obligor in all of its revenue
+arrangement, as it has pricing latitude and is
+exposed to inventory and credit risks. Revenue
+is stated net of goods and service tax and net of
+returns, chargebacks, rebates and other similar
+allowances. These are calculated on the basis of
+historical experience and the specific terms in the
+individual contracts.
+In determining the transaction price, the Company
+considers the effects of variable consideration,
+the existence of significant financing components,
+noncash consideration, and consideration payable
+to the customer (if any). The Company estimates
+variable consideration at contract inception until it
+is highly probable that a significant revenue reversal
+in the amount of cumulative revenue recognised
+will not occur when the associated uncertainty with
+the variable consideration is subsequently resolved.
+Profit Sharing Revenues
+The Company from time to time enters into
+arrangements for the sale of its products in certain
+markets. Under such arrangements, the Company
+sells its products to the business partners at a base
+purchase price agreed upon in the arrangement
+and is also entitled to a profit share which is over
+and above the base purchase price. The profit share
+is typically dependent on the ultimate net sale
+proceeds or net profits, subject to any reductions
+or adjustments that are required by the terms of
+the arrangement.
+Revenue in an amount equal to the base purchase
+price is recognised in these transactions upon
+delivery of products to the business partners. An
+additional amount representing the profit share
+component is recognised as revenue only to the
+extent that it is highly probable that a significant
+reversal will not occur.
+123 >>
+Financial Statements
+Dividend distribution to equity holders of the Company
+The Company recognises a liability to make
+dividend distributions to equity holders of the
+Company when the distribution is authorised and
+the distribution is no longer at the discretion of
+the Company. As per the corporate laws in India,
+a distribution is authorised when it is approved
+by the shareholders. A corresponding amount is
+recognised directly in equity.
+Notes to the Standalone Financial Statements
+Own equity instruments that are reacquired
+(treasury shares) are deducted from equity.
+No gain or loss is recognised in profit or loss
+on the purchase, sale, issue or cancellation
+of the Company's own equity instruments.
+Consideration paid or received shall be recognised
+directly in equity.
+Financial Statements
+Notes to the Standalone Financial Statements
+The Transformation Journey
+Notes to the Standalone Financial Statements
+Annual Report 2019-20
+Financial liabilities designated upon initial
+recognition at fair value through profit or loss are
+designated as such at the initial date of recognition,
+and only if the criteria in Ind AS 109 are satisfied.
+For instruments not held-for-trading financial
+liabilities designated as at FVTPL, fair value gains/
+losses attributable to changes in own credit risk are
+recognised in OCI, unless the recognition of the
+effects of changes in the liability's credit risk in OCI
+would create or enlarge an accounting mismatch
+in profit or loss, in which case these effects of
+changes in credit risk are recognised in profit or
+loss. These gains/losses are not subsequently
+transferred to profit or loss. All other changes in
+fair value of such liability are recognised in the
+statement of profit or loss.
+Financial liabilities subsequently measured at amortised cost
+Financial liabilities that are not held-for-trading and
+are not designated as at FVTPL are measured at
+amortised cost in subsequent accounting periods.
+The carrying amounts of financial liabilities that
+are subsequently measured at amortised cost
+are determined based on the effective interest
+rate (EIR) method. Interest expense that is not
+capitalised as part of costs of an asset is included in
+the 'Finance costs' line item in the profit or loss.
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using
+the EIR method. Amortised cost is calculated by
+taking into account any discount or premium on
+acquisition and fees or costs that are an integral
+part of the EIR. The EIR amortisation is included as
+finance costs in the profit or loss.
+for the year ended March 31, 2020
+Financial guarantee contracts are those contracts
+that require a payment to be made to reimburse
+the holder for a loss it incurs because the specified
+debtor fails to make a payment when due in
+accordance with the terms of a debt instrument.
+Financial guarantee contracts are recognised
+initially as a liability at fair value, adjusted for
+transaction costs that are directly attributable to
+the issuance of the guarantee. If not designated as
+at FVTPL, are subsequently measured at the higher
+of the amount of loss allowance determined as per
+impairment requirements of Ind AS 109 and the
+amount initially recognised less cumulative amount
+of income recognised.
+Derecognition
+A financial liability is derecognised when the
+obligation under the liability is discharged or
+cancelled or expires. When an existing financial
+liability is replaced by another from the same
+lender on substantially different terms, or the terms
+of an existing liability are substantially modified,
+such an exchange or modification is treated as
+the derecognition of the original liability and
+the recognition of a new liability. The difference
+between the carrying amount of the financial
+liability derecognised and the consideration paid
+and payable is recognised in profit or loss.
+Embedded derivatives
+Derivatives embedded in non-derivative host
+contracts that are not financial assets within the
+scope of Ind AS 109 are accounted for as separate
+derivatives and recorded at fair value if their
+economic characteristics and risks are not closely
+related to those of the host contracts and the host
+contracts are not held for trading or designated at
+fair value though profit or loss. These embedded
+derivatives are measured at fair value with changes
+in fair value recognised in profit or loss, unless
+designated as effective hedging instruments.
+Reclassification of financial assets
+The Company determines classification of financial
+assets and liabilities on initial recognition. After
+initial recognition, no reclassification is made for
+financial assets which are equity instruments
+and financial liabilities. For financial assets which
+are debt instruments, a reclassification is made
+only if there is a change in the business model
+for managing those assets. Changes to the
+business model are expected to be infrequent.
+The Company's senior management determines
+change in the business model as a result of external
+or internal changes which are significant to the
+Company's operations. Such changes are evident
+to external parties. A change in the business model
+occurs when the Company either begins or ceases
+to perform an activity that is significant to its
+operations. If the Company reclassifies financial
+assets, it applies the reclassification prospectively
+from the reclassification date which is the first day
+of the immediately next reporting period following
+the change in business model. The Company does
+not restate any previously recognised gains, losses
+(including impairment gains or losses) or interest.
+Financial guarantee contracts
+119 >>>
+0.4
+Foreign currency translation reserve
+5,876.6
+5,363.2
+513.4
+1,208.0
+Accumulated amortisation and impairment
+10,465.3
+7,087.8
+2,169.5
+387.4
+As at March 31, 2018
+Amortisation expense
+5,953.0
+349.2
+Disposals
+(0.6)
+(146.8)
+As at March 31, 2019
+758.0
+As at March 31, 2020
+Amortisation expense
+Disposals
+As at March 31, 2020
+Net book value
+As at March 31, 2019
+244.8
+(120.7)
+6,441.5
+(17.8)
+Total
+At cost or deemed cost
+As at March 31, 2018
+Foreign currency translation reserve
+Additions
+Disposals
+1,048.4
+0.4
+6,060.7
+1,208.0
+438.3
+8,317.1
+438.7
+705.5
+204.2
+909.7
+(0.7)
+(261.7)
+(262.4)
+As at March 31, 2019
+1,753.6
+414.5
+1,208.0
+9,403.1
+Additions
+433.7
+749.2
+1,182.9
+Disposals
+(102.9)
+241.9
+995.6
+1,013.3
+(147.4)
+6,711.0
+Sun Farmaceutica do Brasil Ltda
+Quota of Capital Stock of Real 1 each fully paid
+Sun Pharma De Mexico, S.A. DE C.V.
+Common Shares of no Face Value
+8,387,666
+304.2
+8,387,666
+304.2
+4,019
+18.3
+4,019
+18.3
+750
+3.3
+750
+3.3
+Sun Pharmaceutical (Bangladesh) Limited
+Ordinary Shares of 100 Takas each fully paid
+434,469
+Share application money
+36.5
+434,469
+31.6
+36.5
+31.6
+Sun Pharmaceutical Peru S.A.C.
+Ordinary Shares of Soles 10 each fully paid
+in Million
+387.8
+594.0
+As at March 31, 2019
+Quantity
+As at March 31, 2020
+Quantity
+656.4
+(16.3)
+(70.1)
+(86.4)
+1,156.2
+6,124.8
+7,281.0
+in Million
+488.5
+963.0
+1,208.0
+2,692.1
+1,208.0
+3,184.3
+As at March 31, 2020
+Footnotes
+(i) The aggregate amortisation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.
+(ii) Refer Note 56 (1)
+(iii) The recoverable amount of Goodwill have been determined based on value in use calculations which uses cash flow projections covering
+generally a period of five years which are based on key assumptions such as margins, expected growth rates based on past experience and
+Management's expectations/extrapolation of normal increase/steady terminal growth rate and appropriate discount rates that reflects current
+market assessments of time value of money. The management believes that any reasonable possible change in key assumptions on which
+recoverable amount is based is not expected to cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash
+generating unit.
+<130
+The Transformation Journey
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+NOTE: 5 INVESTMENTS IN THE NATURE OF EQUITY IN SUBSIDIARIES (NON-CURRENT)
+Equity instruments
+Unquoted (At cost less impairment in value of investments, if any)
+Sun Pharmaceutical Industries, Inc.
+Common shares of no par value
+in Million
+Goodwill
+14.5
+Computer Software
+(0.2)
+(182.0)
+(4.0)
+(49.9)
+(6.9)
+(243.0)
+As at March 31, 2019
+31.6
+1,964.4
+2.0
+14,799.5
+516.0
+Disposals
+263.2
+18,118.2
+Depreciation expense
+455.3
+4,000.3
+92.8
+76.4
+168.2
+4,793.0
+Disposals
+(0.2)
+(94.8)
+(1.2)
+541.5
+4,935.5
+160.7
+93.9
+81.1
+16.9
+49,909.3
+1,070.7
+430.8
+1,128.8
+68,731.3
+Accumulated depreciation
+and impairment
+As at March 31, 2018
+Foreign currency translation
+20.6
+1,468.7
+1.5
+10,891.4
+21.4
+415.2
+219.2
+387.7
+13,404.3
+21.4
+reserve
+Depreciation expense
+11.0
+495.9
+0.5
+4,068.7
+104.8
+(60.9)
+(10.0)
+(167.1)
+Reclassified to Right-of-use
+NOTE: 3 (b) RIGHT-OF-USE ASSETS
+As at March 31, 2019
+Reclassified from Property, plant and equipment
+Addition on account of transition to Ind AS 116
+Addition
+Less Depreciation expense
+As at March 31, 2020
+in Million
+Leasehold Land
+Building
+Plant and
+equipment
+Total
+Footnote
+(i) For details of Ind AS 116 disclosure refer Note 48.
+NOTE : 4 GOODWILL/OTHER INTANGIBLE ASSETS
+Other than internally generated
+898.0
+200.1
+282.0
+9.5
+3.6
+1,857.3
+898.0
+485.7
+1,866.8
+149
+95.6
+56.1
+1,083.6
+195.9
+1,804.8
+166.2
+3,084.3
+for the year ended March 31, 2020
+Product related
+intangibles
+Notes to the Standalone Financial Statements
+Financial Statements
+(31.6)
+(31.6)
+assets
+As at March 31, 2020
+2,419.5
+2.0
+18,705.0
+607.6
+278.7
+699.7 22,712.5
+Net book value
+As at March 31, 2019
+As at March 31, 2020
+1,147.5
+1,147.6
+898.0
+12,683.9
+12,607.7
+14.9 31,249.2
+14.9 31,204.3
+485.2
+463.1
+196.9
+416.5 47,092.1
+152.1
+429.1 46,018.8
+Footnotes
+(i) Buildings include ₹8,620.0 (As at March 31, 2019: 8,620.0) towards cost of shares in a co-operative housing society and also includes 1.1
+Million (As at March 31, 2019: 1.1 Million) and ₹1,133.0 Million (As at March 31, 2019: ₹1,133.0 Million) towards cost of non-convertible
+preference shares of face value of 10/- each and compulsorily convertible debentures of face value of 10,000/- each in a Company
+respectively entitling the right of occupancy and use of premises and also includes ₹4.5 Million (March 31, 2019 : ₹4.5 Million) towards cost of
+flats not registered in the name of the Company but is entitled to right of use and occupancy.
+(ii) For details of assets pledged as security refer Note 50.
+(iii) The aggregate depreciation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.
+129 >>
+Notes to the Standalone Financial Statements
+0.0
+0.2
+0.0
+* Includes balances of goods and service tax
+# As at March 31, 2020 includes government grant from Biotechnology Industry Research Assistance Council (BIRAC).
+1,195.9
+1,897.3
+340.8
+355.5
+(340.8)
+(355.5)
+1,195.9
+1,897.3
+3,675.5
+7,655.2
+100.8
+134.5
+8,824.6
+13,472.2
+137 >>>
+Financial Statements
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+NOTE : 20 SHARE CAPITAL
+Authorised
+As at March 31, 2020
+Number of shares
+in Million
+As at March 31, 2019
+Number of shares
+March 31, 2019
+3,347.8
+437.4
+in Million
+3,440.5
+411.9
+As at
+March 31, 2020
+(500.0)
+1,200.3
+186.3
+Other receivables - from related parties (Refer Note 51)
+Refund due from government authorities
+Derivatives not designated as hedges
+Derivatives designated as hedges
+2,664.9
+7,552.7
+3,315.4
+2,692.1
+82.7
+133.5
+269.3
+535.2
+7,584.2
+11,150.1
+*The Company has recognised an allowance of 500.0 Million (March 31, 2019: Nil) against Other receivables based on assessment regarding
+recoverability of the same.
+NOTE: 19 OTHER ASSETS (CURRENT)
+Export incentives receivable
+Prepaid expenses
+Advances for supply of goods and services
+Considered good
+Considered doubtful
+Less Allowance for doubtful
+Balances with government authorities *
+Other assets #
+in Million
+As at
+186.3
+Equity shares of *1 each
+Cumulative preference shares of 100 each
+2,399.3
+0.0
+2,399,334,970
+2,399.3
+2,399,334,970
+2,399.3
+As at March 31, 2020
+Number of shares
+% of holding
+As at March 31, 2019
+Number of shares
+% of holding
+Equity shares held by each shareholder holding more
+than 5 percent equity shares in the Company are as
+follows:
+Shanghvi Finance Private Limited
+Dilip Shantilal Shanghvi
+Life Insurance Corporation Of India and its various funds
+(i)
+967,051,732
+230,285,690
+152,884,946
+40.3
+959,772,578
+9.6
+6.4
+230,285,690
+141,217,558
+40.0
+9.6
+5.9
+334,956,764 (upto March 31, 2019: 334,956,764) equity shares of *1 each have been allotted, pursuant to scheme
+of amalgamation, without payment being received in cash during the period of five years immediately preceding the
+date at which the Balance Sheet is prepared.
+(ii) 7,500,000 (upto March 31, 2019: 7,500,000), equity shares of 1 each have been bought back during the period
+of five years immediately preceding the date at which the Balance Sheet is prepared. The shares bought back
+were cancelled.
+(iii) Rights, Preference and Restrictions attached to equity shares: The equity shares of the Company, having par value of
+*1 per share, rank pari passu in all respects including voting rights and entitlement to dividend.
+(iv) Refer Note 49 for number of employee stock options against which equity shares are to be issued by the Company/
+ESOP Trust upon vesting and exercise of those stock options.
+138
+11,790
+5,990,000,000
+2,399,323,180
+2,399,334,970
+100,000
+5,990.0
+10.0
+5,990,000,000
+100,000
+5,990.0
+10.0
+5,990,100,000
+6,000.0
+5,990,100,000
+6,000.0
+Issued, subscribed and fully paid up
+Equity Shares of 1 each
+2,399,334,970
+2,399,334,970
+2,399.3
+2,399,334,970
+2,399.3
+2,399.3
+2,399,334,970
+2,399.3
+Reconciliation of the number of equity shares and
+amount outstanding at the beginning and at the end of
+reporting period
+Opening balance
+Add: shares allotted to employees on exercise of
+employee stock option (March 31, 2020: Nil; March 31,
+2019: 11,790)
+Closing balance
+Year ended March 31, 2020
+Number of shares
+Year ended March 31, 2019
+* in Million
+Number of shares
+in Million
+2,399.3
+149
+1,700.3
+48.3
+50,000
+1.5
+Faststone Mercantile Company Private Limited
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+Foundation for Disease Elimination and Control of India
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+Neetnav Real Estate Private Limited
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+Realstone Multitrade Private Limited
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+Skisen Labs Private Limited
+1.5
+Shares of 10 each fully paid
+40,050,000
+Sun Pharma Laboratories Limited
+[21,734 (March 31, 2019: 21,734)]
+SPIL DE Mexico S.A. DE CV
+Nominative and free Shares of 500 Mexican Pesos each
+fully paid
+100
+0.2
+100
+1,147.6
+OOO "Sun Pharmaceutical Industries" Limited
+Par value rouble stock fully paid
+1
+8.8
+1
+8.8
+5,250,000 Rouble (March 31, 2019: 5,250,000 Rouble)
+Green Eco Development Centre Limited
+Shares of 10 each fully paid
+700,000
+7.0
+700,000
+7.0
+Sun Pharma De Venezuela, C.A.
+Shares of Bolivars (Bs.F.) 100 each, Bolivars (Bs.F.)
+1,000
+0.5
+1,000
+0.5
+50 per share paid
+Shares of 10 each fully paid
+34.2
+16,360,000
+163.6
+(163.6)
+Ordinary Shares of Naira 1 each fully paid
+Quoted (At cost less impairment in value of investments, if any)
+Zenotech Laboratories Limited
+Shares of 10 each fully paid
+Less: Impairment in value of investment
+166.8
+4.5
+4.5
+(4.5)
+(4.5)
+81.9
+167.6
+4,404.0
+4,485.9
+2,779.7
+2,947.3
+As at
+March 31, 2020
+in Million
+As at
+March 31, 2019
+Insurance claim receivables
+Interest accrued, considered good
+Security deposits (unsecured, considered good)
+Other receivables
+Less: Allowance for doubtful*
+2.1
+16.0
+1.2
+0.1
+Ranbaxy Nigeria Limited
+Less: Impairment in value of investment
+Ordinary Shares of RM 1 each fully paid
+Ordinary Shares of Euro 1 each fully paid
+Less: Impairment in value of investment
+16,360,000
+163.6
+(163.6)
+Softdeal Trading Company Private Limited
+Shares of 10 each fully paid
+Sun Pharma Holdings
+Shares of US$1 each fully paid
+10,000
+0.1
+10,000
+855,199,716
+54,031.5
+855,199,716
+54,031.5
+0.1
+Sun Pharma (Netherlands) B.V. [formerly known as
+Ranbaxy (Netherlands) B.V.]
+Ordinary Shares of Euro 100 each fully paid
+5,473,340
+39,877.3
+5,473,340
+39,877.3
+131 >>>
+Financial Statements
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+Sun Pharma France [formerly known as Ranbaxy
+Pharmacie Generiques SAS]
+Ranbaxy Malaysia Sdn. Bhd.
+As at March 31, 2020
+4,697.9
+(929.6)
+March 31, 2019
+3.4
+3.1
+4.0
+6.9
+7.4
+10.0
+As at
+March 31, 2020
+0.9
+414.3
+in Million
+As at
+As at
+March 31, 2019
+424.0
+120.7
+434.1
+849.3
+546.1
+133 >>
+Financial Statements
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+NOTE : 9 DEFERRED TAX ASSETS (NET)
+Deferred tax (liabilities)/assets in relation to:
+1.4
+As at
+March 31, 2020
+in Million
+Unbilled revenue (Refer Note 55)
+50,000,000
+50.8
+200,000,000
+202.2
+50,000,000
+51.4
+0.0
+530.0
+653.9
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+Aggregate amount of unquoted investments before impairment
+81.6
+650.2
+81.6
+650.2
+938.3
+938.2
+Aggregate amount of impairment in value of investments
+934.5
+934.5
+NOTE: 7 LOANS (NON-CURRENT)
+Loans to employees/others
+Secured, considered good
+Unsecured, considered good
+NOTE : 8 OTHER FINANCIAL ASSETS (NON-CURRENT)
+Deposits
+Security deposits (unsecured, considered good)
+Derivatives not designated as hedges
+Difference between written down value of property,
+plant and equipment, intangible assets and capital
+work-in-progress as per books of accounts and income tax
+Opening balance
+April 01, 2019
+Recognised in profit
+or loss
+(5,832.2)
+Unabsorbed depreciation/carried forward losses
+5,800.8
+(1,989.0)
+3,811.8
+Other assets
+1.5
+0.8
+2.3
+(434.1)
+434.1
+MAT credit entitlement
+7,517.0
+3,880.1
+7,517.0
+3,446.0
+434.1
+11,397.1
+11,397.1
+Deductible temporary differences, unused tax losses and unused tax credits for which no
+deferred tax assets have been recognised are attributable to the following:
+Tax losses
+Tax losses (Capital in nature)*
+Unabsorbed depreciation
+Unused tax credits (MAT credit entitlement)
+Deductible temporary differences
+in Million
+As at
+March 31, 2020
+As at
+March 31, 2019
+76,652.8
+10,690.2
+548.8
+100.1
+100.1
+353.8
+59.5
+in Million
+Recognised
+in other
+comprehensive
+income
+Closing balance
+March 31, 2020
+(5,772.7)
+Difference in carrying value and tax base of financial assets
+of investments
+(14.3)
+(5.4)
+9.3
+(10.4)
+Derivatives designated as hedges
+(187.0)
+0.3
+324.7
+138.0
+Deferred revenue
+532.5
+532.5
+Other liabilities
+(724.2)
+724.2
+Allowance for doubtful debts and advances
+601.6
+148.1
+749.7
+Expenses claimed for tax purpose on payment basis
+94.9
+100,000,000
+98.4
+100,000,000
+Aggregate amount of impairment in value of investments
+Aggregate amount of quoted investments at market value
+NOTE: 6 INVESTMENTS (NON-CURRENT)
+168,164.0
+179,199.7
+3,318.5
+3,318.5
+1,901.4
+516.4
+6,610.5
+746.5
+Other investments
+Investments in equity instruments
+Quoted (Fair value through other comprehensive income)
+Krebs Biochemicals and Industries Limited
+Shares of 10 each fully paid
+Unquoted (Fair value through profit and loss)
+Enviro Infrastructure Co. Limited
+Shares of 10 each fully paid
+As at March 31, 2020
+Quantity
+in Million
+As at March 31, 2019
+Quantity
+in Million
+1,050,000
+81.6
+1,050,000
+120.2
+100,000
+1.0
+100,000
+1.0
+Aggregate amount of unquoted investments before impairment
+Aggregate book value (carrying value) of quoted investments
+before impairment
+Shimal Research Laboratories Limited
+175,907.7
+79,960.2
+Preference shares - unquoted (At cost)
+As at March 31, 2020
+Quantity
+in Million
+As at March 31, 2019
+Quantity
+in Million
+24,117,250
+4,709.1
+(4,709.1)
+3,189,248
+37.0
+3,189,248
+37.0
+13,070,648
+8.6
+35,128,078
+3,318.5
+35,128,078
+(1,737.8)
+3,318.5
+(1,737.8)
+1,580.7
+1,580.7
+95,938.9
+95,947.5
+Sun Pharma Holdings
+5% Optionally Convertible Preference Shares US$1
+each fully paid
+1,165,593,148
+73,642.2
+1,265,593,148
+169,581.1
+81,976.0
+Shares of 10 each fully paid
+Less: Impairment in value of investment
+7.62% Government of Telangana UDAY 2026
+Bond of 1 each fully paid maturing March 7, 2026
+7.98% Government of Telangana UDAY 2030
+Bond of 1 each fully paid maturing March 7, 2030
+8.24% Government of Tamil Nadu UDAY 2028
+Bond of 1 each fully paid maturing March 22, 2028
+8.11% Government of Chhattisgarh SDL 2028
+Bond of 1 each fully paid maturing January 31, 2028
+8.29% Government of West Bengal SDL 2028
+Bond of 1 each fully paid maturing February 21, 2028
+Unquoted (Amortised cost)
+National savings certificates
+[10,000 (March 31, 2019: 10,000)]
+As at March 31, 2020
+Quantity
+* in Million
+124,007
+1.2
+85.4
+0.0
+0.0
+85.4
+Annual Report 2019-20
+As at March 31, 2019
+Quantity
+110,832
+in Million
+1.1
+123.9
+27,400,000
+27.1
+Bond of 1 each fully paid maturing June 23, 2020
+9,340,000
+Quoted (Fair value through other comprehensive income)
+8.01% Government of Rajasthan UDAY 2020
+Shares of 10 each fully paid
+934.0
+(934.0)
+9,340,000
+934.0
+(934.0)
+Shivalik Solid Waste Management Limited
+Shares of 10 each fully paid
+20,000
+0.2
+20,000
+0.2
+Biotech Consortium India Limited
+Shares of 10 each fully paid
+50,000
+Less: Impairment in value of investment
+0.5
+(0.5)
+50,000
+0.5
+(0.5)
+Nimbua Greenfield (Punjab) Limited
+Shares of 10 each fully paid
+140,625
+1.4
+140,625
+1.4
+132
+The Transformation Journey
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+Watsun Infrabuild Private Limited
+Investments in government securities
+743.5
+28,634.9
+37,767.1
+90.7
+Escrow account - Buy back [Refer Note 56 (8)]
+4,250.0
+Balances held as margin money or security against guarantees and other commitments (*)
+16.5
+35.6
+4,342.8
+380.1
+* Having original maturity of more than 12 months.
+<136
+The Transformation Journey
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+NOTE: 17 LOANS (CURRENT)
+Loans to employees/others *
+Secured, considered good
+Unsecured, considered good
+Credit impaired
+Less: Allowance for doubtful loans (expected credit loss allowance)
+Loans to related parties (Refer Note 51 and 52) *
+Unsecured, considered good
+* Loans have been granted for the purpose of their business.
+NOTE : 18 OTHER FINANCIAL ASSETS (CURRENT)
+Annual Report 2019-20
+As at
+March 31, 2020
+in Million
+As at
+March 31, 2019
+0.8
+0.8
+76.3
+The Transformation Journey
+Unpaid dividend accounts
+Deposit accounts
+Credit impaired
+Less: Allowance for doutful debts (expected credit loss allowance)
+NOTE: 15 CASH AND CASH EQUIVALENTS
+Balances with banks
+In current accounts
+Cash on hand
+As at
+March 31, 2020
+in Million
+As at
+March 31, 2019
+61,681.3
+50,314.7
+1,300.1
+1,361.6
+62,981.4
+51,676.3
+(1,300.1)
+61,681.3
+(1,361.6)
+50,314.7
+in Million
+As at
+March 31, 2020
+As at
+March 31, 2019
+2,197.0
+8.0
+2,205.0
+3,023.3
+4.3
+3,027.6
+NOTE: 16 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 15 ABOVE
+in Million
+As at
+March 31, 2020
+As at
+March 31, 2019
+253.8
+Earmarked balances with banks
+Considered good
+Notes to the Standalone Financial Statements
+NOTE: 3 (a) PROPERTY, PLANT AND EQUIPMENT
+(5.3)
+(88.7)
+As at March 31, 2019
+1,147.5
+929.6
+Additions
+0.1
+Disposals
+14,648.3
+380.5
+(1.6)
+16.9
+46,048.7
+1,001.2
+460.1
+207.9
+(8.0)
+958.0 65,210.3
+8,353.7
+(592.1)
+4,008.9
+71.3
+54.5
+182.6
+(148.3)
+(1.8)
+(83.8)
+(11.8)
+(247.3)
+Reclassified to Right-of-use
+(929.6)
+(487.3)
+for the year ended March 31, 2020
+(2.7)
+Disposals
+Annual Report 2019-20
+in Million
+Freehold Leasehold
+land
+land
+Buildings
+Buildings -
+leased
+Plant and Furniture
+equipment and fixtures
+Vehicles
+Office
+equipment
+Total
+At cost or deemed cost
+As at March 31, 2018
+1,041.2
+562.4 14,160.1
+16.9
+Foreign currency translation
+39,431.5
+39.2
+958.2
+481.1
+758.1
+57,409.5
+39.2
+reserve
+Additions
+106.4
+367.2
+490.9
+7,065.3
+48.3
+67.7
+(0.1)
+assets
+Unsecured
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+Annual Report 2019-20
+As at
+March 31, 2020
+in Million
+As at
+March 31, 2019
+2,146.2
+2,469.9
+9.5
+5.0
+1,582.4
+1,023.2
+3,738.1
+3,498.1
+in Million
+As at
+March 31, 2020
+As at
+March 31, 2019
+11,407.4
+11,538.5
+124.9
+40.8
+11,532.3
+11,579.3
+8,700.1
+8,659.2
+4,797.2
+5,035.6
+1,024.2
+Stores and spares
+2,212.7
+Stock-in-trade
+Work-in-progress
+2,874.3
+2,874.3
+19,779.3
+20,758.2
+138,631.5
+144,119.1
+The unused tax credits will expire from financial year 2022-23 to financial year 2027-28 and unused tax losses will expire from financial year
+2021-22 to financial year 2027-28.
+* Includes loss on sale of Investment in Sun Pharma France [formerly known as Ranbaxy Pharmacie Generiques SAS]. In the current year, the Company
+sold its entire stake in Ranbaxy Nigeria Limited and Sun Pharma France, to Sun Pharma (Netherlands) B.V. as part of internal restructuring.
+Further, as a result of the sale, provision amounting to ₹2,502.9 Million made on account of provision in respect of losses of a subsidiary have been
+reversed in the financial statements.
+NOTE : 10 INCOME TAX ASSETS (NET) (NON-CURRENT)
+Advance income tax *
+Net of provisions ₹14,765.9 Mllion (March 31, 2019 : ₹10,896.0 Million)
+* Includes amount paid under protest
+<134
+As at
+March 31, 2020
+in Million
+As at
+March 31, 2019
+20,780.2
+20,780.2
+21,101.2
+21,101.2
+The Transformation Journey
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+NOTE: 11 OTHER ASSETS (NON-CURRENT)
+Capital advances
+Prepaid expenses
+Balances with government authorities
+* Includes amount paid under protest
+NOTE: 12 INVENTORIES
+Lower of cost and net realisable value
+Raw materials and packing materials
+Goods in transit
+Finished goods
+NOTE : 14 TRADE RECEIVABLES
+282.9
+26,336.7
+Financial Statements
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+HSBC Global Asset Management-HSBC Cash Fund-
+Growth-Direct Plan
+As at March 31, 2020
+Quantity
+in Million
+805.5
+As at March 31, 2019
+Quantity
+in Million
+407,322
+Baroda Mutual Fund-Baroda Liquid fund-Plan B Growth
+BNP Paribas Mutual fund - BNP Paribas Liquid Fund -
+Direct Plan - Growth
+179,523
+411.0
+295,287
+902.9
+PGIM India Mutual Fund-PGIM India Insta Cash Fund-
+Direct Plan-Growth
+3,100,626
+801.0
+MIRAE Asset Mutual Fund-Mirae Asset Cash
+478,993
+1,003.3
+Management Fund-Direct Plan-growth
+3,923.7
+2,452.6
+3,950.7
+2,479.5
+135 >>>
+439.4
+1,001.2
+450.4
+27,926.2
+(i) Inventory write downs are accounted, considering the nature of inventory, estimated shelf life, planned product discontinuances, price changes,
+ageing of inventory and introduction of competitive new products as well as provisioning policy of the Company. Write downs of inventories
+amounted to 9,860.2 Million (March 31, 2019: ₹9,154.5 Million). The changes in write downs are recognised as an expense in the statement of
+profit and loss.
+(ii) The cost of inventories recognised as an expense is disclosed in Notes 32, 33 and 36 and as purchases of stock-in-trade in the statement of
+profit and loss.
+NOTE: 13 INVESTMENTS (CURRENT)
+As at March 31, 2020
+Quantity
+in Million
+As at March 31, 2019
+Quantity
+in Million
+Investments in government securities
+Quoted (Fair value through other comprehensive income)
+8.01% Government of Rajasthan UDAY 2020
+Bond of 1 each fully paid maturing June 23, 2020
+27,400,000
+27.0
+7.86% Government of Rajasthan UDAY 2019
+Bond of 1 each fully paid maturing June 23, 2019
+Investments in mutual funds
+Unquoted (Fair value through profit and loss)
+*
+ICICI Prudential Mutual Fund - ICICI Prudential Liquid -
+Direct Plan - Growth
+Kotak Mahindra Mutual Fund - Kotak Liquid Scheme Plan
+A Direct Plan - Growth
+Yes Asset Mangement (India) Limited - Yes Liquid Fund
+Direct Growth
+27,400,000
+27.0
+26.9
+26.9
+3,621,515
+1,001.0
+119,010
+986,315
+15,027.2
+Unsecured
+The Transformation Journey
+2,027.3
+3,335.2
+Year ended
+March 31, 2019
+in Million
+2,087.6
+294.8
+1,697.7
+Year ended
+March 31, 2020
+15,713.4
+360.4
+14,379.5
+973.5
+Year ended
+March 31, 2019
+in Million
+15,660.5
+1,019.5
+347.7
+17,027.7
+Year ended
+March 31, 2020
+(2,513.0)
+(15,907.5)
+13,394.5
+15,907.5
+(14,521.5)
+1,386.0
+in Million
+Year ended
+March 31, 2019
+Year ended
+March 31, 2020
+4,080.1
+Loss on sale/write off of property, plant and equipment and intangible assets, net
+46.7
+5,409.2
+Year ended
+March 31, 2020
+176.6
+182.0
+2,154.5
+2,297.9
+231.8
+351.3
+538.2
+3,746.5
+5,557.7
+715.2
+211.5
+1,165.9
+2,177.9
+58.5
+4,072.8
+3,947.4
+2,467.8
+2,555.8
+4,362.8
+3,746.8
+Year ended
+March 31, 2019
+in Million
+1,645.5
+Donations
+Provision/write off/(reversal) for doubtful trade receivables/advances
+Inventories at the beginning of the year
+NOTE: 33 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-
+PROGRESS
+Annual Report 2019-20
+Secured
+Notes to the Standalone Financial Statements
+The Transformation Journey
+27,277.1
+32,017.1
+(11,579.3)
+(11,532.3)
+31,144.2
+7,712.2
+11,579.3
+31,970.1
+Year ended
+March 31, 2019
+in Million
+Year ended
+March 31, 2020
+<<142
+Inventories at the end of the year
+Purchases during the year
+Inventories at the end of the year
+Professional, legal and consultancy
+NOTE: 34 EMPLOYEE BENEFITS EXPENSE
+Contribution to provident and other funds *
+Communication
+Freight outward and handling charges
+Travelling and conveyance
+Printing and stationery
+Repairs and maintenance
+Commission on sales
+Selling, promotion and distribution
+Insurance
+Rates and taxes
+Rent
+Power and fuel
+Conversion and other manufacturing charges
+Consumption of materials, stores and spare parts
+NOTE: 36 OTHER EXPENSES
+Interest expense others (includes interest on income tax and lease liability)
+Exchange differences regarded as an adjustment to borrowing costs
+Unwinding of discounts on provisions
+Interest expense for financial liabilities carried at amortised cost
+NOTE: 35 FINANCE COSTS
+* Includes gratuity expense of ₹244.3 Million (March 31, 2019 : *250.9 Million)
+Staff welfare expenses
+Salaries, wages and bonus
+Inventories at the beginning of the year
+1,615.2
+2,481.3
+1,035.7
+55.0
+2.0
+286.4
+2,764.6
+19.4
+109.1
+in Million
+Year ended
+March 31, 2019
+3,099.4
+Year ended
+March 31, 2020
+3,145.2
+155.8
+23.2
+2,181.4
+316.4
+NOTE: 38 TAX RECONCILIATION
+Miscellaneous income
+Receipts from research activities
+Less:
+Miscellaneous expenses
+Professional, legal and consultancy
+Communication
+Travelling and conveyance
+Printing and stationery
+Repairs and maintenance
+772.9
+Insurance
+44.5
+359.6
+Profit before tax
+Reconciliation of tax expense
+Year ended
+March 31, 2019
+Year ended
+March 31, 2020
+in Million
+21.7
+9,029.9
+490.9
+384.7
+13.1
+9,897.5
+342.1
+9,542.5
+152.2
+10,295.3
+1,523.7
+2,741.0
+43.8
+36.8
+100.9
+89.2
+12.7
+12.3
+360.1
+52.4
+2,505.3
+Rates and taxes
+Power and fuel
+March 31, 2020
+Year ended
+in Million
+Year ended
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+Financial Statements
+143 >>
+341.0
+51.0
+28.3
+33.6
+4,546.2
+5,650.3
+(147.0)
+535.4
+277.7
+309.2
+March 31, 2019
+Rent
+Payments to auditor (net of input credit, wherever applicable)
+For other services
+Consumption of materials, stores and spare parts
+Contribution to provident and other funds
+Staff welfare expenses
+Salaries, wages and bonus
+NOTE: 37 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE STATEMENT OF
+PROFIT AND LOSS
+30,893.1
+35,140.8
+2,214.3
+2,780.4
+Miscellaneous expenses
+366.9
+Provision in respect of losses of a subsidiary
+1.7
+3.4
+14.5
+10.1
+24.6
+26.1
+Reimbursement of expenses
+For audit
+Raw materials and packing materials
+NOTE: 32 COST OF MATERIALS CONSUMED
+12,714.4
+9,911.0
+170.6
+45,053.3
+12,191.8
+30,392.7
+22,779.9
+As at
+March 31, 2019
+As at
+March 31, 2020
+in Million
+Annual Report 2019-20
+NOTE : 28 OTHER LIABILITIES (CURRENT)
+Derivatives designated as hedge
+Derivatives not designated as hedge
+Product settlement, claims, recall charges and trade commitments
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+Interest accrued
+Current maturities of long-term debt (Refer Note 50)
+NOTE : 27 OTHER FINANCIAL LIABILITIES (CURRENT)
+Lease liabilities (Refer Note 48)
+13,887.8
+Commercial paper (Unsecured)
+44,280.5
+in Million
+Advance from customers
+Statutory remittances
+in Million
+36,878.7
+22.6
+13.0
+663.3
+26,218.6
+30,126.9
+18,537.9
+592.8
+357.6
+97.4
+84.4
+93.9
+77.2
+84.2
+46.6
+5,860.9
+6,438.6
+As at
+March 31, 2019
+As at
+March 31, 2020
+Deferred revenue (Refer Note 55)
+Other loans
+Loans from related party (Refer Note 51)
+As at
+March 31, 2020
+in Million
+14,225.0
+14,127.7
+10,463.9
+2,041.2
+12,566.9
+97.3
+61.8
+in Million
+As at
+March 31, 2019
+As at
+March 31, 2020
+<140
+Others (Refer Note 53)
+Employee benefits
+NOTE : 25 PROVISIONS (NON-CURRENT)
+Deferred revenue (Refer Note 55)
+NOTE : 24 OTHER LIABILITIES (NON-CURRENT)
+Derivatives not designated as hedge
+Interest accrued
+NOTE : 23 OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+Lease liabilities (Refer Note 48)
+As at
+March 31, 2019
+Loans repayable on demand (Unsecured)
+10.2
+10.2
+Unsecured
+From Banks
+Loans repayable on demand
+NOTE : 26 BORROWINGS (CURRENT)
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+The Transformation Journey
+1,570.7
+1,570.7
+As at
+March 31, 2019
+in Million
+13,919.6
+1,769.4
+12,150.2
+As at
+March 31, 2020
+181.0
+181.0
+1,455.5
+1,455.5
+As at
+March 31, 2019
+As at
+March 31, 2020
+in Million
+161.7
+161.7
+Others *
+As at
+March 31, 2020
+2,003.7
+0.0
+8,909.3
+9,258.3
+1,293.6
+700.6
+563.9
+160.2
+527.1
+205.3
+46.9
+22.2
+Net gain arising on financial assets measured at fair value through profit or loss
+Others (March 31, 2019: ₹30,000)
+Subsidiary
+Dividend income on investments
+Others (includes interest on income tax refund)
+Other financial assets carried at amortised cost
+Investments in debt instruments at fair value through other comprehensive income
+123.6
+Net gain on sale of financial assets measured at fair value through profit or loss
+301.2
+9,258.3
+7.2
+121.4
+2.0
+384.9
+69.8
+15,109.2
+Miscellaneous income
+47.1
+41.9
+Lease rental and hire charges
+66.6
+145.1
+Insurance claims
+35.6
+1,862.4
+2,244.3
+17.3
+2,502.9
+Reversal of provision in respect of losses of a subsidiary
+Sundry balances written back, net
+Gain on sale of investment in subsidiary
+(0.1)
+0.4
+Net gain/(loss) on sale of financial assets measured at fair value through other comprehensive income
+113.0
+8,909.3
+32.1
+11.7
+Loans at amortised cost
+10,185.6
+2,399.9
+475.6
+As at
+March 31, 2019
+As at
+March 31, 2020
+793.8
+in Million
+Others (Refer Note 53)
+Provision in respect of losses of a subsidiary
+Employee benefits
+NOTE : 29 PROVISIONS (CURRENT)
+* As at March 31, 2019 includes government grant received from Biotechnology Industry Research Assistance Council (BIRAC).
+4,572.6
+6,437.2
+15.5
+42.7
+68.4
+4.1
+1,724.0
+2,790.4
+4,361.0
+As at
+March 31, 2019
+22,561.8
+10,979.4
+25,437.3
+141 >>
+Bank deposits at amortised cost
+Interest income on :
+Year ended
+March 31, 2019
+Year ended
+March 31, 2020
+in Million
+NOTE: 31 OTHER INCOME
+5,199.2
+103,032.1
+97,832.9
+Year ended
+March 31, 2019
+32,530.0
+in Million
+119,067.4
+6,251.9
+March 31, 2020
+Year ended
+Revenue from contracts with customers [Refer Note 55 and 56 (10)]
+Other operating revenues
+NOTE: 30 REVENUE FROM OPERATIONS
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+Financial Statements
+125,319.3
+Term loans from banks (Refer Note 50)
+7,194.5
+34.944%
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Mutual funds
+Investments in government securities
+Investments in equity - unquoted
+Investments in equity - quoted #
+Financial assets
+Financial assets and liabilities measured at fair value on a recurring basis at the
+end of each reporting period
+NOTE : 42 FAIR VALUE HIERARCHY
+Product settlement, claims, recall charges and trade commitments
+Derivatives not designated as hedges
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+Trade payables
+Interest accrued
+Borrowings
+Financial liabilities
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+Financial liabilities
+Financial Statements
+Derivatives not designated as hedges
+Derivatives designated as hedges
+in Million
+27.0
+3.8
+81.6
+Level 3
+As at March 31, 2020
+Level 2
+Level 1
+in Million
+116,921.0
+30,126.9
+592.8
+97.4
+93.9
+21,549.2
+64,366.4
+94.4
+22.6
+22.6
+Amortised cost
+Fair value
+through other
+comprehensive
+income
+Fair value through
+profit or loss
+As at March 31, 2019
+Financial assets and liabilities measured at fair value on a recurring basis at the
+end of each reporting period
+3,923.7
+147 »
+1,212.3
+357.6
+84.4
+77.2
+23,348.9
+46.6
+64,058.8
+80,803.9
+377.9
+82.7
+4,010.2
+269.3
+3,865.2
+3,315.4
+1.2
+2.1
+4,342.8
+2,205.0
+434.1
+61,681.3
+Amortised cost
+in Million
+18,537.9
+67,586.5
+663.3
+663.3
+254.2
+2,710.5
+535.2
+2,692.1
+7,739.0
+0.1
+16.0
+380.1
+3,027.6
+50,314.7
+458.2
+1.4
+0.0
+2,779.7
+177.6
+2,456.3
+677.1
+Amortised cost
+Fair value
+through other
+comprehensive
+income
+Fair value through
+profit or loss
+As at March 31, 2019
+in Million
+106,511.4
+174.7
+174.7
+As at March 31, 2020
+Fair value
+through other
+comprehensive
+income
+82.7
+4,032.3
+34,779.3
+140,052.7
+240,332.6
+123,846.1
+224,184.8
+1.0
+26.1
+(0.3)
+(8.2)
+1,485.9
+1,485.9
+Effective portion of cash flow hedges
+(256.3)
+348.2
+1,230.3
+1,852.0
+241,562.9
+226,036.8
+Refer statement of changes in equity for detailed movement in other equity balance
+Nature and purpose of each reserve
+34,779.3
+Capital reserve - During amalgamation/merger/acquisition, the excess of net assets taken, over the consideration paid, if
+any, is treated as capital reserve.
+7.5
+43.8
+7.5
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+NOTE : 21 OTHER EQUITY
+Annual Report 2019-20
+A) Surplus
+Capital reserve
+Securities premium
+Amalgamation reserve
+Capital redemption reserve
+General reserve
+Retained earnings
+B) Items of other comprehensive income (OCI)
+Equity instrument through OCI
+Debt instrument through OCI
+Foreign currency translation reserve
+As at
+March 31, 2020
+53,575.2
+11,874.1
+in Million
+As at
+March 31, 2019
+53,575.2
+11,932.9
+43.8
+269.3
+Securities premium - The amount received in excess of face value of the equity shares is recognised in securities
+premium. In case of equity-settled share based payment transactions, the difference between fair value on grant date
+and nominal value of share is accounted as securities premium. It is utilised in accordance with the provisions of the
+Companies Act, 2013.
+Capital redemption reserve - The Company has recognised capital redemption reserve on buyback of equity shares
+from its retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity
+shares bought back.
+Derivatives not designated as hedges
+2,452.6
+Mutual funds
+556.9
+Investments in government securities
+3.7
+Investments in equity - unquoted
+120.2
+Investments in equity - quoted #
+Financial assets
+Level 3
+As at March 31, 2019
+Level 2
+Level 1
+in Million
+838.0
+663.3
+174.7
+3.8
+352.0
+254.2
+Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.
+Derivatives designated as hedges
+3,129.7
+General reserve - The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies
+Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
+Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investment in
+equity instrument in other comprehensive income. This amount will be reclassifed to retained earnings on derecognition
+of equity instrument.
+Debt instrument through OCI - This represents the cumulative gain and loss arising on fair valuation of debt instruments
+measured through other comprehensive income. This will be reclassified to statement of profit or loss on derecognition of
+debt instrument.
+139 >>
+Financial Statements
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+Foreign currency translation reserve - Exchange differences relating to the translation of the results and the net assets
+of the Company's foreign operations from their functional currencies to the Company's presentation currency (i.e ₹) are
+recognised directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange
+difference in the foreign currency translation reserve are reclassified to statement of profit or loss account on the disposal
+of the foreign operation. [Refer Note 56 (9)]
+Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of
+gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow
+hedges. The cumulative gain or loss recognised and accumulated under the cash flow hedge reserve will be reclassified to
+profit or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-
+financial hedged item.
+NOTE : 22 BORROWINGS (NON-CURRENT)
+Term loan from department of biotechnology (Refer Note 50)
+<<148
+22.6
+22.6
+Derivatives not designated as hedges
+Financial liabilities
+3.7
+789.4
+535.2
+Fair value through
+profit or loss
+Annual Report 2019-20
+Derivatives not designated as hedges
+89.3
+89.8
+171.0
+171.0
+799.5
+856.1
+Other matters - state electricity board, Punjab Land Preservation Act related matters etc.
+Note: includes, interest till the date of demand, wherever applicable
+f
+Octroi demand on account of rate difference
+e
+Fine imposed for anti-competitive settlement agreement by European Commission
+d
+3,488.2
+3,488.2
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit,
+enjoyed by the Company
+C
+130.5
+130.5
+ESIC contribution on account of applicability
+g
+1,019.0
+The Company has made provision on prospective basis to give impact of Provident fund
+judgement by Hon'ble Supreme Court of India (SC) dated February 28, 2019. The Company will
+update its provision, on receiving further clarity.
+Legal proceedings:
+As at
+March 31, 2019
+in Million
+As at
+March 31, 2020
+*Income tax matters where department has preferred an appeal against favourable order
+received by the Company amounted to *20,242.6 Million (March 31, 2019: 10,851.2 Million).
+These matters are sub-judice in various forums and pertains to various financial years.
+Commitments
+Future cash outflows in respect of the above matters are determinable only on receipt of
+judgements/decisions pending at various forums/authorities.
+Note:
+The Company and its subsidiaries is a defendant in a number of putative class action lawsuits
+and individual actions brought by purchasers and payors in US alleging that the Company and
+its affiliates violated antitrust laws and the Racketeer Influenced and Corrupt Organizations Act,
+with respect to its ANDAs for Valganciclovir, Valsartan and Esomeprazole. The cases have been
+transferred to the United States District Court for the District of Massachusetts for coordinated
+proceedings. The cases are proceeding in discovery.
+Antitrust - In re Ranbaxy Generic Drug Application Antitrust Litigation:
+ii
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+Financial Statements
+145 »
+The Company and its subsidiaries is a defendant in a number of putative class action lawsuits
+and individual actions brought by purchasers and payors in US alleging that the Company and its
+affiliates violated antitrust laws in connection with a 2008 patent settlement agreement with Pfizer
+concerning Atorvastatin. The cases have been transferred to the United States District Court for the
+District of New Jersey for coordinated proceedings. The cases are proceeding in discovery.
+Antitrust - Lipitor:
+The Company and its subsidiaries was a defendant in a number of putative class action lawsuits
+and individual actions brought by purchasers and payors, as well as a generic manufacturer, in
+US alleging that the Company and its affiliates violated antitrust laws in connection with a 2005
+patent settlement agreement with Cephalon concerning Modafinil. The cases were transferred
+to the United States District Court for the Eastern District of Pennsylvania for coordinated
+proceedings, subsequently the Company has reached settlements in these coordinated
+proceedings.
+Antitrust - Modafinil:
+The Company and/or its subsidiaries are involved in various legal proceedings including
+product liability, contracts, employment claims, anti-trust and other regulatory matters relating
+to conduct of its business. Some of the key matters are discussed below. Most of the legal
+proceedings involve complex issues, which are specific to the case and don't have precedents
+and hence for a majority of these claims, it is not possible to make a reasonable estimate of the
+expected financial effect, if any, that will result from ultimate resolution of the proceedings.
+This is due to a number of factors, including: the stage of the proceedings and the overall length
+and the discovery process; the entitlement of the parties to an action to appeal a decision; the
+extent of the claims, including the size of any potential class, particularly when damages are
+not specified or are indeterminate; the possible need for further legal proceedings to establish
+the appropriate amount of damages, if any; the settlement posture of the other parties to the
+litigation and any other factors that may have a material effect on the litigation. The Company
+makes its assessment of likely outcome, based on the views of internal legal counsel and in
+consultation with external legal counsel representing the Company. The Company also believes
+that disclosure of the amount sought by plaintiffs, would not be meaningful because historical
+evidence indicates that the amounts settled (if any) are significantly different than those claimed
+by plaintiffs. Some of the legal claims against the Company, if decided against the Company
+may result into significant impact on its results of operations of a given period during which the
+claim is settled.
+h
+a
+177.3
+118.9
+15.5
+271.8
+(1,076.0)
+(971.5)
+(1,216.7)
+418.6
+Income tax expense recognised in statement of profit and loss
+(5,612.2)
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+Others
+(15.5)
+Withholding tax in respect of income earned outside India
+751.8
+(1,783.7)
+(1,907.2)
+Effect of incremental deduction allowed on account of research and development costs and
+other allowances
+126.6
+Effect of expenses that are not deductible in determining taxable profit
+(1,664.9)
+(2,323.7)
+Effect of income that is exempt from tax
+2,514.0
+11,367.3
+Income tax calculated at income tax rate
+34.944%
+# The tax rate used for reconciliation above is the corporate tax rate of 34.944% (March 31, 2019: 34.944%) at which the Company is liable to pay
+tax on taxable income under the Indian Tax Law.
+Excise duty/service tax on account of valuation/cenvat credit
+<<144
+Notes to the Standalone Financial Statements
+115.3
+Sales tax on account of rebate/classification
+29,819.5
+26,569.2
+Income tax on account of disallowances/additions (Company appeals)*
+Liabilities disputed - appeals filed with respect to :
+b
+608.9
+595.3
+Claims against the Company not acknowledged as debts
+a
+Contingent liabilities
+i
+As at
+March 31, 2019
+As at
+March 31, 2020
+in Million
+NOTE: 39 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
+Annual Report 2019-20
+for the year ended March 31, 2020
+The Transformation Journey
+b
+Estimated amount of contracts remaining to be executed on capital account [net of advances]
+Uncalled liability on partly paid investments
+4,239.0
+Trade payables
+Interest accrued
+Borrowings
+Financial liabilities
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Other receivables
+Refund due from government authorities
+Insurance claim receivables
+Interest accrued
+Bank balances other than cash and cash equivalents
+Cash and cash equivalents
+Trade receivables
+Unbilled revenue
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+The Transformation Journey
+462.6
+0.0
+4,404.0
+89.3
+0.9
+Unpaid dividends
+Amortised cost
+Security deposits
+Product settlement, claims, recall charges and trade commitments
+Derivatives designated as hedges
+Other receivables
+Refund due from government authorities
+Insurance claim receivables
+Interest accrued
+Bank balances other than cash and cash equivalents
+Cash and cash equivalents
+Trade receivables
+Security deposits
+Deposits
+Loans to employees/others
+Loans to related parties
+Government securities - unquoted (10,000)
+Equity instruments/mutual fund - unquoted
+Equity instruments/bonds - quoted
+Investments
+Financial assets
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Payables on purchase of property, plant and equipment
+in Million
+108.6
+3,927.5
+NOTE: 41 CATEGORIES OF FINANCIAL INSTRUMENTS
+Total
+Capital
+Revenue, net (excluding depreciation) (Refer Note 37)
+NOTE: 40 RESEARCH AND DEVELOPMENT EXPENDITURE
+iii Guarantees given by the bankers on behalf of the Company
+* The Company is committed to pay milestone payments and royalty on certain contracts,
+however, obligation to pay is contingent upon fulfilment of contractual obligation by parties to
+the contract.
+Buy-back related commitment refer Note 56 (8)
+f
+859.3
+536.7
+Letters of credit for imports
+e
+Lease related commitments refer Note 48
+d
+For derivatives related commitments refer Note 44
+C
+4,767.5
+0.5
+0.5
+Financial assets
+Investments
+Equity instruments/bonds - quoted
+Equity instruments/mutual fund - unquoted
+Government securities - unquoted (*10,000)
+income
+Fair value
+through other
+comprehensive
+As at March 31, 2020
+Fair value through
+profit or loss
+590.9
+9,620.8
+9,029.9
+Year ended
+March 31, 2019
+10,202.9
+305.4
+Income tax rate (%) applicable to the Company #
+9,897.5
+Year ended
+in Million
+2,774.9
+1,667.3
+<146
+Security deposits
+Deposits
+Loans to employees/others
+Loans to related parties
+March 31, 2020
+for the year ended March 31, 2020
+Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
+Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its
+liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the
+Company's reputation.
+Weighted-
+average remaining
+contractual life
+(years)
+1,979.6
+28.2
+2,602.5
+712.1
+2,078.4
+Cash and cash equivalents
+36,364.2
+Trade receivables
+Financial assets
+Total
+Others
+As at March 31, 2019
+Russian
+South
+Rouble African Rand
+Euro
+US Dollar
+in Million
+69,333.4
+4,396.7
+140.0
+1.3
+4,014.1
+1,896.4
+11.7
+46,856.8
+2,830.4
+158.7
+2.3
+1,094.7
+6,683.0
+Trade payables
+50,428.8
+50,428.8
+Borrowings
+750.0
+Financial liabilities
+1,908.1
+4,014.1
+2,007.8
+3,314.6
+45,995.3
+7,552.7
+7,552.7
+Other receivables - from related parties
+57,239.9
+585.5
+64,045.4
+11,115.6
+54,532.9
+1,843.6
+10.7
+1,287.4
+3,438.1
+47.7
+4,284.5
+562.3
+1,103.7
+43,679.3
+Cash and cash equivalents
+Trade receivables
+Financial assets
+Total
+Others
+As at March 31, 2020
+Russian
+South
+Rouble African Rand
+Euro
+US Dollar
+in Million
+b)
+1,724.4
+Other receivables - from related parties
+2,664.9
+2,664.9
+696.9
+140.0
+1.3
+750.0
+9,527.4
+18,537.9
+Product settlement, claims, recall charges and
+trade commitments
+Trade payables
+39,679.9
+18,537.9
+3,699.8
+Borrowings
+Financial liabilities
+58,922.2
+1,854.3
+1,287.4
+3,485.8
+4,846.8
+47,447.9
+35,980.1
+Significant foreign currency risk exposure relating to trade receivables, other receivables, cash and cash equivalents, borrowings
+and trade payables
+Product settlement, claims, recall charges and
+trade commitments
+8,524.2
+30,126.9
+$6.6
+USD
+Sell
+GBP
+Forward contracts
+$4.5
+USD
+Sell
+RUB
+Forward contracts
+$7.4
+$ 6.8
+USD
+Sell
+AUD
+Forward contracts
+$ 27.3
+$ 4.9
+Forward contracts
+EUR
+Sell
+$ 50.0
+USD
+Buy
+JPY
+Currency swaps
+$ 50.0
+INR
+Buy
+INR
+USD
+$ 50.0
+INR
+Buy
+USD
+Currency cum interest rate swaps
+$9.8
+$7.2
+USD
+Interest rate swaps (floating to fixed)
+30,126.9
+Buy
+Forward contracts
+Hedges of highly probable forecasted transactions
+The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily
+in US Dollars, Euros, South African Rand and Russian Rouble, and foreign currency debt is in US Dollars and Japanese
+Yen. The Company uses foreign currency forward contracts, foreign currency option contracts and currency
+swap contracts (collectively, "derivatives") to mitigate its risk of changes in foreign currency exchange rates. The
+counterparty for these contracts is generally a bank or a financial institution.
+Derivative contracts
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+The Transformation Journey
+<152
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because
+the exposure at the end of the reporting period does not reflect the exposure during the year.
+For the years ended March 31, 2020 and March 31, 2019, every 5% strengthening in the exchange rate between the
+Indian rupee and the respective currencies for the above mentioned financial assets/liabilities would increase the
+Company's profit and increase the Company's equity by approximately 520.6 Million and ₹1,592.0 Million respectively.
+A 5% weakening of the Indian rupee and the respective currencies would lead to an equal but opposite effect.
+Sensitivity
+89,079.9
+585.5
+158.7
+2.3
+1,094.7
+87,238.7
+The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable
+forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow
+hedges is recorded as in other comprehensive income, and re-classified in the income statement as revenue in the
+period corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow
+hedges is immediately recorded in the statement of profit and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a loss of
+*929.2 Million for the year ended March 31, 2020 and gain of 535.2 Million for the year ended March 31, 2019 in
+other comprehensive income. The Company also recorded hedges as a component of revenue, gain of ₹462.4 Million
+for the year ended March 31, 2020 and loss of 117.4 Million for the year ended March 31, 2019 on occurrence of
+forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and
+liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in the statement of profit
+and loss. The changes in fair value of the forward contracts and option contracts, as well as the foreign exchange
+gains and losses relating to the monetary items, are recognised in the statement of profit and loss.
+The following table gives details in respect of the notional amount of outstanding foreign exchange
+derivative contracts -
+Derivatives not designated as hedges
+ZAR 480.0
+$ 120.5
+ZAR 450.0
+$227.5
+INR
+Sell
+USD
+Forward contracts
+INR
+USD
+Sell
+Forward contracts
+Derivatives designated as hedges
+As at
+March 31, 2019
+As at
+March 31, 2020
+Cross
+Currency
+Buy/Sell
+Currency
+Amount in Million
+ZAR
+a)
+The Company's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses,
+(primarily in US Dollars, Euros, South African Rand and Russian Rouble) and foreign currency borrowings (primarily in US
+Dollars and Japanese Yen). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the
+Company's revenues and expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate
+between the Indian rupee and these foreign currencies have changed substantially in recent periods and may continue
+to fluctuate substantially in the future. Consequently, the Company uses both derivative and non-derivative financial
+instruments, such as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency
+financial liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable
+forecasted transactions and recognised assets and liabilities.
+Foreign exchange risk
+5.6
+4,791.6
+Dividends not recognised at the end of the reporting period
+Dividend distribution tax on above
+1,355.8
+7,193.9
+Interim dividend for the year ended March 31, 2020 of 3 (year ended March 31, 2019: *Nil)
+per fully paid share
+Dividend distribution tax on above
+6,595.7
+Final dividend for the year ended March 31, 2019 of 2.75 (year ended March 31, 2018: 2.0)
+per fully paid share
+Dividend on equity shares
+Year ended
+March 31, 2019
+Year ended
+March 31, 2020
+in Million
+(ii) Dividend on equity shares paid during the year
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+The Board of Directors at it's meeting held on May 27, 2020 have recommended payment of
+final dividend of ₹1 per share of face value of *1 each for the year ended March 31, 2020. The
+same amounts to 2,399.3 Million.
+This proposed dividend is subject to the approval of shareholders in the ensuing annual
+general meeting and hence not recognised as liability.
+NOTE: 44 FINANCIAL RISK MANAGEMENT
+573.1
+33,432.2
+34,744.0
+2,036.0
+March 31, 2019
+As at
+March 31, 2020
+in Million
+As at
+<150
+Total
+beyond 365 days
+Financial Statements
+180 - 365 days
+Financial assets for which loss allowances is measured using the expected credit loss
+Trade receivables
+The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company
+uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and
+internal risk factors and historical data of credit losses from various customers.
+Trade receivables
+The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that
+have a good credit rating. The Company does not expect any significant losses from non-performance by these counter-
+parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
+Investments
+Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
+meet its contractual obligations, and arises principally from the Company's receivables from customers, loans and
+investments. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
+creditworthiness of counterparty to which the Company grants credit terms in the normal course of business.
+Credit risk
+The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
+Company's risk management assessment and policies and processes are established to identify and analyze the risks faced
+by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk
+assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and
+the Company's activities.
+less than 180 days
+7,826.8
+149 »
+23.7%
+The Company's capital management objectives are:
+NOTE: 43 CAPITAL MANAGEMENT
+Balance at the end of the year
+Disposal/settlements
+Purchases
+Balance at the beginning of the year
+Unlisted shares valued at fair value
+Reconciliation of Level 3 fair value measurements
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates their fair value.
+There were no transfers between Level 1 and 2 in the periods.
+# These investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose. Upon the
+application of Ind AS 109, the Company has chosen to designate these investments in equity instruments at fair value through other comprehensive
+income as the management believes that this provides a more meaningful presentation for medium or long-term strategic investments, than
+reflecting changes in fair value immediately in profit or loss.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of
+unquoted investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents
+estimate of fair value within that range.
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly.
+Level 3 inputs are unobservable inputs for the asset or liability.
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+The Transformation Journey
+- to ensure the Company's ability to continue as a going concern; and
+in Million
+Year ended
+March 31, 2020
+Year ended
+March 31, 2019
+243,962.2
+58,605.5
+64,366.4
+5,760.9
+57,903.1
+64,058.8
+6,155.7
+in Million
+As at
+March 31, 2019
+As at
+March 31, 2020
+Net debt to total equity ratio
+228,436.1
+25.7%
+Total equity, including reserves
+Debt (includes non-current, current borrowings and current maturities of long-term debt)
+Less: cash and cash equivalents, bank balances (excluding earmarked balances with banks) and
+current investments
+(i) Debt equity ratio
+The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents, bank balances
+(excluding earmarked balances with banks) and current investments as presented on the face of the financial statements.
+The Company's objective for capital management is to maintain an optimum overall financial structure.
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+407.6
+1.1
+(405.0)
+3.7
+3.8
+0.1
+3.7
+Net debt
+26,201.4
+10,417.3
+62,981.4
+More than 3 years
+1-3 years
+Less than 1 year
+in Million
+838.0
+838.0
+161.7
+161.7
+676.3
+676.3
+106,644.1
+3,061.9
+9,529.4
+94,052.8
+19,103.7
+19,103.7
+23,348.9
+23,348.9
+64,191.5
+As at
+March 31, 2019
+50,276.2
+21,549.2
+30,995.2
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+Financial Statements
+151 >>>
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
+market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of
+market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable
+to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-
+term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and
+the market value of its investments. Thus, the Company's exposure to market risk is a function of investing and borrowing
+activities and revenue generating and operating activities in foreign currencies.
+22.6
+22.6
+3,061.9
+117,091.5
+31,005.4
+10.2
+12,489.5
+21,549.2
+64,536.9
+1,781.4
+12,479.3
+22.6
+22.6
+102,820.6
+1,781.4
+9,529.4
+51,600.2
+in Million
+As at
+March 31, 2020
+1,300.1
+(85.9)
+24.4
+1,361.6
+Balance at the end of the year
+Recoveries
+Addition
+Balance at the beginning of the year
+1,575.5
+Movement in the expected credit loss allowance on trade receivables
+Year ended
+Year ended
+March 31, 2020
+in Million
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+The Transformation Journey
+51,676.3
+March 31, 2019
+Interest rate risk
+181.1
+1,361.6
+More than 3 years
+1-3 years
+Less than 1 year
+Market risk
+Derivative
+Other financial liabilities
+Trade payables
+Borrowings
+(395.0)
+Non derivative
+Other financial liabilities
+Trade payables
+Borrowings
+Non derivative
+The table below provides details regarding the contractual maturities of significant financial liabilities:
+The Company has unutilised working capital lines from banks of ₹48,498.0 Million as on March 31, 2020, 32,313.0
+Million as on March 31, 2019.
+Liquidity risk
+Other than trade receivables, the Company has recognised an allowance of *4.5 Million (March 31, 2019: 4.5 Million)
+against past due loans including interest and 500.0 Million of other receivables based on assessment regarding
+recoverability of the same.
+Derivative
+The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in interest
+rates. The Company's Treasury Department monitors the interest rate movement and manages the interest rate risk
+by evaluating interest rate swaps etc. based on the market/risk perception.
+0.9
+153 >>>
+Delta effect of -1% change in discount rate
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee turnover
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation for next
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+As at March 31, 2019
+in Million
+Gratuity
+(Funded)
+(Unfunded)
+Pension Fund
+As at March 31, 2020
+Delta effect of +1% change in discount rate
+Impact on defined benefit obligation
+The sensitivity analysis have been determined based on
+method that extrapolates the impact on defined benefit
+obligation as a reasonable change in key assumptions
+occuring at the end of the reporting period
+Sensitivity analysis:
+(2006-08)
+15.80%
+60
+N.A.
+(2006-08)
+N.A.
+Indian Assured
+Lives Mortality
+(84.7)
+95.6
+(162.0)
+180.9
+(76.3)
+85.5
+(122.0)
+2nd year
+353.5
+87.5
+383.0
+88.0
+1st year
+566.0
+88.4
+Indian Assured
+Lives Mortality
+541.5
+19.4
+29.1
+(17.9)
+(26.5)
+(120.5)
+130.0
+174.6
+134.4
+88.8
+87.1
+N.A.
+10.00%
+As at March 31, 2019
+Pension Fund
+Gratuity
+(Unfunded)
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+As at March 31, 2020
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+The Transformation Journey
+2,696.7
+2,653.2
+(250.8)
+(248.2)
+230.7
+19.2
+(24.7)
+(6.4)
+191.1
+(Funded)
+Assumptions:
+Discount rate
+6.50%
+N.A.
+9.38% 10.00%
+N.A.
+Indian Assured
+Lives Mortality
+(2012-14)
+12.40% - 13.45%
+60
+(2012-14)
+N.A.
+N.A.
+Retirement Age (years)
+Employee turnover
+Lives Mortality
+Indian Assured
+N.A.
+N.A.
+Interest rate guarantee
+Mortality
+7.10%
+N.A.
+6.50%
+N.A.
+Expected return on plan assets
+Expected rate of salary increase
+7.10%
+7.10%
+6.50%
+N.A.
+348.4
+86.7
+355.0
+562.5
+(158,739)
+562.5
+562.5
+The scheme has ended and no options are outstanding at the end of the year.
+<158
+Payment towards lease liabilities
+Effect of changes in foreign exchange rates
+Interest on lease liabilities
+Addition
+Addition on account of transition to Ind AS 116
+Opening balance
+Movement of lease liabilities
+b)
+Year ended
+March 31, 2020
+in Million
+5,091.7
+562.5
+158,739
+Weighted-average
+exercise prices (*)
+Range of exercise
+prices (*)
+For the years ended March 31, 2020 and March 31, 2019, every 50 basis point decrease in the floating interest
+rate component applicable on its closing balance of loans and borrowings would increase the Company's profit
+by approximately 198.4 Million and ₹217.6 Million respectively. A 50 basis point increase in floating interest rate
+would have led to an equal but opposite effect.
+Closing balance
+485.7
+1,866.8
+157.1
+0.4
+(298.2)
+2,211.8
+The Company has given certain premises and plant and machinery under operating lease or leave and license
+agreements. These are generally not non-cancellable and periods range between 11 months to 5 years under leave
+and license/lease and are renewable by mutual consent on mutually agreeable terms. The Company has received
+refundable interest free security deposits where applicable in accordance with the agreed terms.
+3,698.6
+NOTE : 49 EMPLOYEE SHARE-BASED PAYMENT PLANS
+The movement of the options (post split) granted under SUN-ESOS 2015
+Outstanding at the commencement of the year
+Exercised during the year
+Lapsed during the year
+Outstanding at the end of the year
+Exercisable at the end of the year
+March 31, 2020
+Stock options
+(numbers)
+The Company operates employee stock option scheme namely, SUN Employee Stock Option Scheme-2015 (SUN-ESOS
+2015) for the grant of stock options to the eligible personnel. Options are granted at the discretion of the Committee to
+selected employees depending upon certain criterion. Each option comprises one underlying equity share.
+1,039.0
+354.1
+in Million
+As at
+March 31, 2020
+The contribution expected to be made by the Company
+Surplus fund lying uninvested
+Insurer managed funds (Funded with LIC, break-up
+not available)
+Bonds and securities
+Central government securities
+The major categories of plan assets are as under
+Thereafter
+5th year
+for gratuity, during financial year ending March 31, 2021 is
+*556.2 Million (Previous year: 81.1 Million)
+303.6
+337.2
+85.5
+4th year
+314.1
+85.8
+354.6
+86.1
+3rd year
+84.8
+191.9
+2,122.9
+2,143.7
+Later than five years
+Later than one year and not later than five years
+Not later than one year
+The table below provides details regarding the contractual maturities of lease liabilities on an
+undiscounted basis:
+Effective April 01, 2019, the Company has adopted Ind AS 116 "Leases", and applied to all lease contracts existing on
+April 01, 2019 using the modified retrospective method. Accordingly, the Company has recognised a lease liability
+measured at the present value of the remaining lease payments, and right-of-use (ROU) asset at an amount equal to
+lease liability (adjusted for any related prepayments). Management has excercised judgement in determining whether
+extension and termination options are reasonably certain to be excercised. Expenses relating to short-term leases
+and low-value assets for year ended March 31, 2020 is 25.9 Million.
+a)
+NOTE : 48 LEASES
+for the year ended March 31, 2020
+2,674.2
+Notes to the Standalone Financial Statements
+Financial Statements
+157 >>
+950.4
+935.1
+67.3
+1,669.1
+9.9
+9.7
+66.2
+1,642.2
+2,023.9
+Notes to the Standalone Financial Statements
+2,550.4
+(159.7)
+Year ended
+March 31, 2019
+Gratuity (Funded)
+iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate
+of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the
+plan participants will increase the plan's liability.
+Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially
+offset by an increase in the return on the plan's debt investments.
+Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined
+by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on
+plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by investment in
+LIC managed fund.
+ii)
+i)
+These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk
+and salary risk.
+The Company has an obligation towards pension, a defined benefit retirement plan, with respect to certain
+employees, who had already retired before March 01, 2013 and will continue to receive the pension as per
+the pension plan.
+Risks
+Pension fund
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund
+Scheme. It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to
+specific benefit at the time of retirement or termination of the employment on completion of five years or death
+while in employement. The level of benefit provided depends on the member's length of service and salary at the
+time of retirement/termination age. Provision for gratuity is based on actuarial valuation done by an independent
+actuary as at the year end. Each year, the Company reviews the level of funding in gratuity fund and decides its
+contribution. The Company aims to keep annual contributions relatively stable at a level such that the fund assets
+meets the requirements of gratuity payments in short to medium term.
+a) Gratuity
+Defined benefit plan
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+The Transformation Journey
+0.8
+iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of
+plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
+Other long term benefit plan
+Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company policy
+with corresponding (gain)/charge to the statement of profit and loss amounting to 368.5 Million [March 31, 2019: *275.6
+Million] and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and
+employee compensation.
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as
+at the year end using the 'Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating
+to defined benefit obligation are recognised in other comprehensive income whereas gains and losses in respect of other
+long term employee benefit plans are recognised in profit or loss.
+67.5
+245.2
+253.9
+Interest cost
+Current service cost
+(Refer Note 34)
+Expense recognised in the statement of profit and loss
+Gratuity
+(Funded)
+1.1
+Pension Fund
+(Unfunded)
+Year ended March 31, 2019
+Year ended March 31, 2020
+Pension Fund
+(Unfunded)
+in Million
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+Financial Statements
+155 >>>
+Gratuity
+(Funded)
+37.1
+48.2
+64.9
+Diluted earnings per share (in)
+Basic earnings per share (in ₹)
+Nominal value per share (in)
+Weighted average number of shares used in computing diluted earnings per share (A + B)
+Profit for the year (in Million) - used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic earnings per share (A)
+Add: Dilution effect of employee stock option (B)
+NOTE: 46 EARNINGS PER SHARE
+There are no amounts of interest paid/due/payable during the year/previous year/succeeding year. Also, there is no amount of interest accrued and
+remaining unpaid at the end of current accounting year/previous accounting year.
+March 31, 2019
+659.8
+NOTE: 47 EMPLOYEE BENEFIT PLANS
+in Million
+As at
+Principal amount remaining unpaid to any supplier as at the end of the accounting year
+The information regarding Micro and Small Enterprises has been determined to the extent such parties have been
+identified on the basis of information available with the Company. This has been relied upon by the auditors.
+NOTE : 45 DISCLOSURES UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT
+ACT, 2006
+Exposure to market risk with respect to commodity prices primarily arises from the Company's purchases and sales of
+active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients.
+These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the
+Company's raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used
+in the Company's active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms
+the largest portion of the Company's cost of revenues. Commodity price risk exposure is evaluated and managed
+through operating procedures and sourcing policies. As of March 31, 2020, the Company had not entered into any
+material derivative contracts to hedge exposure to fluctuations in commodity prices.
+Commodity rate risk
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+As at
+March 31, 2020
+461.8
+182.3
+Defined contribution plan
+32,111.4
+2,399,334,970
+63.2
+in Million
+Year ended
+March 31, 2019
+600.1
+Year ended
+March 31, 2020
+649.7
+<<154
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+Contribution to Superannuation Fund
+Contribution to Provident Fund and Family Pension Fund
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC)
+and other Funds which covers all regular employees. While both the employees and the Company make predetermined
+contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund and other Statutory Funds are
+made only by the Company. The contributions are normally based on a certain percentage of the employee's salary.
+Amount recognised as expense in respect of these defined contribution plans, aggregate to *762.2 Million (March 31,
+2019 702.9 Million).
+Year ended
+March 31, 2020
+3.4
+1
+13.4
+13.4
+2,399,330,257
+2,696.7
+2,399,334,970
+3,575
+8,166.0
+2,399,326,681
+March 31, 2019
+Year ended
+1
+3.4
+67.7
+b)
+Expected return on plan assets
+Employer's contribution during the year
+Benefits paid
+Plan assets as at the year end
+<156
+Year ended
+March 31, 2020
+Gratuity (Funded)
+29.2
+in Million
+117.3
+Actuarial gain
+22.6
+(160.0)
+35.7
+58.2
+due to change in financial assumptions
+-
+(15.4)
+64.6
+- due to change in demographic assumptions
+- due to experience
+Actuarial (gains)/losses on obligations
+196.8
+Plan assets as at the beginning of the year
+Obligation as at the year end
+1,009.7
+2,949.6
+949.3
+(79.2)
+2,562.4
+in Million
+As at
+March 31, 2020
+Expected return
+As at
+March 31, 2019
+Gratuity (Funded)
+Present value of commitments (as per Actuarial Valuation)
+Fair value of plan assets
+Net (asset)/liability recognised in the financial statement
+Gratuity (Funded)
+2,949.6
+(2,653.2)
+296.4
+2,562.4
+(2,696.7)
+(134.3)
+Reconciliation of plan assets
+Reconciliation of liability/(asset) recognised in the Balance sheet
+(250.8)
+17.3
+(248.2)
+Obligation as at the beginning of the year
+(87.0)
+Reconciliation of defined benefit obligations
+(229.9)
+64.9
+205.6
+80.8
+Expense/(income) charged to other comprehensive income
+24.7
+6.4
+Actuarial gain on plan assets
+(254.6)
+64.9
+199.2
+80.8
+Actuarial loss/(gain) on defined benefit obligation
+250.9
+67.7
+244.3
+67.5
+Expense charged to the statement of profit and loss
+Remeasurement of defined benefit obligation recognised in
+other comprehensive income
+(191.1)
+(191.9)
+949.3
+2,562.4
+Financial Statements
+2,625.8
+(87.9)
+Benefits paid
+196.8
+67.7
+182.3
+67.5
+Interest cost
+245.2
+903.7
+Current service cost
+253.9
+f
+PV Power Technologies Private Limited
+United Medisales Private Limited
+Aditya Medisales Limited
+Sidmak Laboratories (India) Private Limited
+Ramdev Chemicals Private Limited (upto April 25, 2019)
+Sun Petrochemicals Private Limited
+Sun Pharma Advanced Research Company Limited.
+Others (Entities in which the KMP and relatives of KMP have control or Significant influence)
+Makov Associates Limited
+Wholetime Director (DIN No.: 00179072)
+Wholetime Director (DIN No.: 00005443)
+Chairman and Non-Executive Director
+(Non-Independent (DIN No.: 05299764))
+Asepco Solutions Private Limited
+Non-Executive Director (Designation changed from Whole-time
+Director to Non-Executive Director on May 29, 2019) and Non-
+Independent Director (DIN No. : 00005561)
+Managing Director (DIN No.: 00005588)
+Aalok Shanghvi
+ANNEXURE "A"
+e
+Vidhi Shanghvi
+Relatives of Key Management Personnel
+Fortune Integrated Assets Finance Ltd
+Purchase of goods
+Footnote
+Subsidiaries
+Others
+Purchase of property, plant and equipment
+Subsidiaries
+Associates
+Annual Report 2019-20
+ANNEXURE "A"
+in Million
+Year ended
+March 31, 2020
+Year ended
+March 31, 2019
+3,355.8
+3,053.8
+3,344.2
+2,902.7
+11.6
+151.1
+46.6
+Kalyanasundaram lyer Natesan Subramanian
+46.1
+129.8
+Type of Transaction
+Suraksha Asset Reconstruction Private Limited
+(II) Detail of related party transaction during the year ended March 31, 2020:
+for the year ended March 31, 2020
+Incorporated/Acquired during the year
+1
+2
+Incorporated/Acquired during the previous year
+3
+Dissolved/Liquidated during the year
+4
+Dissolved/Liquidated during the previous year
+5
+Pola Pharma Inc. has been merged with Sun Pharma Japan Ltd w.e.f. January 01, 2020:
+6
+7
+Holds voting power of 84.73% (beneficial ownership 77.10%) [March 31, 2019 84.36% (beneficial ownership 76.54%)]
+Ranbaxy GmbH has been merged with Basics GmbH w.e.f April 01, 2018
+8
+Taro Pharmaceuticals Canada, Ltd. has been merged with Taro Pharmaceuticals Inc. w.e.f. April 01, 2018
+9 Morley & Company, Inc. has been merged with Taro Development Corporation w.e.f. March 27, 2020
+10 Dungan Mutual Associates, LLC has been merged with Mutual Pharmaceutical Company LLC w.e.f. March 16, 2020
+11 URL PharmPro, LLC has been merged with Mutual Pharmaceutical Company LLC w.e.f. March 16, 2020
+<166
+The Transformation Journey
+Notes to the Standalone Financial Statements
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+Israel Makov
+Sun Pharmaceutical Industries S.A.C. (formerly known as Ranbaxy - PRP
+(Peru) S.A.C.)
+Sudhir Vrundavandas Valia
+Ranbaxy South Africa (Pty) Ltd.
+Ranbaxy Pharmaceutical (Pty) Ltd.
+Be-Tabs Investments (Pty) Ltd. (Refer Footnote 4)
+Sonke Pharmaceuticals Proprietary Limited
+Sun Pharma Laboratorios, S.L.U. (Formerly known as Laboratorios
+Ranbaxy, S.L.U.)
+Ranbaxy (U.K.) Limited
+AO Ranbaxy (formerly known as ZAO Ranbaxy)
+Ranbaxy Holdings (U.K.) Limited
+Ranbaxy Inc.
+Ranbaxy (Thailand) Company Limited
+Ohm Laboratories, Inc.
+Ranbaxy Signature LLC
+Sun Pharmaceuticals Morocco LLC (formerly known as Ranbaxy
+Morocco LLC)
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+Ranbaxy Europe Limited (Refer Footnote 4)
+Insite Vision Incorporated
+Terapia SA
+Ranbaxy Italia S.P.A.
+Dungan Mutual Associates, LLC (Refer Footnote 10)
+URL PharmPro, LLC (Refer Footnote 11)
+ANNEXURE "A"
+128.1
+2 Independence Way LLC
+Universal Enterprises Private Limited
+Sun Pharma Switzerland Limited
+Sun Pharma East Africa Limited
+Pharmalucence, Inc.
+Ranbaxy (Poland) Sp. Z o.o.
+PI Real Estate Ventures, LLC
+Sun Pharma Canada Inc. (Formerly known as Ranbaxy Pharmaceuticals
+Canada Inc.)
+Sun Pharma Egypt Limited LLC (Formerly known as Ranbaxy Egypt Ltd)
+Rexcel Egypt LLC
+Office Pharmaceutique Industriel Et Hospitalier
+Basics GmbH (Refer Footnote 7)
+Ranbaxy GmbH (Refer Footnote 7)
+Ranbaxy Ireland Limited
+Sun Pharma ANZ Pty Ltd (formerly known as Ranbaxy Australia Pty Ltd)
+Ranbaxy Farmaceutica Ltda.
+Sun Pharmaceutical Medicare Limited
+JSC Biosintez
+Sun Pharmaceuticals Holdings USA, INC
+Zenotech Laboratories Nigeria Limited (Refer Footnote 3)
+Zenotech Inc
+Taro Pharmaceuticals Canada, Ltd. (Refer Footnote 8)
+Alkaloida Sweden AB (Refer Footnote 4)
+Dusa Pharmaceuticals, Inc.
+Realstone Infra Limited (Refer Footnote 1)
+Names of related parties where there are transactions and description of relationships
+b
+Taro Pharmaceutical Laboratories Inc
+с
+Joint Ventures
+Artes Biotechnology GmbH
+Associate
+Medinstill Development LLC
+Key Management Personnel (KMP)
+Dilip Shantilal Shanghvi
+d
+One Commerce Drive LLC
+3 Skyline LLC
+Taro Pharmaceuticals (UK) Limited (Refer Footnote 4)
+Zenotech Farmaceutica Do Brasil Ltda
+Taro Pharmaceutical Industries Ltd. (TARO) (Refer Footnote 6) Sun Pharma Distributors Limited (Refer Footnote 2)
+Taro Pharmaceuticals Inc. (Refer Footnote 8)
+Kayaku Co., Ltd. (Refer Footnote 2)
+165 >>
+Financial Statements
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+Names of related parties and description of relationships
+Taro Pharmaceuticals U.S.A., Inc.
+Taro Pharmaceuticals North America, Inc.
+Taro Pharmaceuticals Europe B.V.
+Taro Pharmaceuticals Ireland Limited (Refer Footnote 4)
+Taro International Ltd.
+Sailesh Trambaklal Desai
+1.7
+2.1
+Subsidiaries
+Subsidiaries
+Others
+Rent expense/Payment towards Lease Liabilities
+Subsidiaries
+Provision/(reversal) in respect of losses of a subsidiary
+Subsidiaries
+Provision for doubtful debt
+Subsidiaries
+Remuneration
+Key management personnel (#)
+Relatives of Key management personnel
+(*) Includes income recognised from profit sharing supply arrangements.
+Year ended
+March 31, 2020
+ANNEXURE "A"
+in Million
+Year ended
+March 31, 2019
+22,494.7
+22,494.7
+Rent income
+Subsidiaries
+Interest expense
+Others
+167 >>
+Financial Statements
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+(II) Detail of related party transaction during the year ended March 31, 2020:
+Type of Transaction
+21,390.6
+Loan repaid
+Interest on loans repaid
+Subsidiaries
+Dividend income on preference shares
+Subsidiaries
+Dividend income on equity shares
+Subsidiaries
+Interest income
+Subsidiaries
+Subsidiaries
+21,390.6
+383.7
+383.7
+177.1
+2.1
+177.1
+Mutual Pharmaceutical Company Inc.
+(2,502.9)
+366.9
+(2,502.9)
+366.9
+23.3
+27.1
+200.5
+39.7
+171.4
+14.6
+29.1
+25.1
+(#) Mr. Sudhir Vrundavandas Valia stepped down from the position of Whole-time Director of the Company to Non-Executive Director of the
+Company, with effect from May 29, 2019. He continues to be a Non-Promoter, Non-Executive and Non-Independent Director of the Company.
+As he stepped down from the position of Whole-time Director of the Company, the Salary includes the following amounts paid at the time of
+final settlement: leave encashment of ₹15.1 Million and gratuity of ₹38.9 Million which is being reimbursed by LIC as per policy.
+Key Management Personnel (KMP) and Relatives of KMP who are under the employment of the Company are entitled to post employment benefits
+and other long term employee benefits recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee benefits
+are lump sum amounts provided on the basis of actuarial valuation, the same is not included above and there is no Share-based payments to Key
+Management Personnel of Company.
+27.1
+15,340.9
+22.8
+13.5
+14.5
+14.5
+9,258.3
+8,894.8
+9,258.3
+8,894.8
+469.3
+613.7
+17.2
+427.6
+41.7
+503.7
+564.5
+426.4
+564.5
+426.4
+36.3
+40.5
+110.0
+Others
+34,178.4
+34,178.4
+20.1
+25.0
+5.3
+277.4
+2,014.3
+1,130.9
+1,314.0
+585.1
+45.5
+29.3
+654.8
+516.5
+5,435.8
+13,089.2
+5,136.9
+13,080.9
+3.9
+302.4
+25.4
+Others
+Joint ventures
+Others
+0.5
+Revenue from contracts with customers, net of returns
+91,454.3
+72,036.8
+91,482.2
+41,114.8
+(27.9)
+298.9
+30,922.0
+Subsidiaries
+Others
+Receiving of service
+Subsidiaries
+Joint ventures
+Others
+Reimbursement of expenses paid
+Subsidiaries
+Sale of property, plant and equipment
+4.4
+Rendering of service
+2,784.2
+Sales of investment
+Subsidiaries
+Loan taken
+Subsidiaries
+1,508.7
+2,934.3
+1,508.7
+2,934.3
+Subsidiaries
+128.2
+128.2
+303.3
+0.1
+0.1
+8,570.9
+8,580.4
+8,570.9
+8,580.4
+303.3
+15,340.9
+Secuirty Deposit received
+Loans received back
+2,944.1
+Subsidiaries(*)
+2,723.6
+2,839.4
+Others
+60.6
+104.7
+Reimbursement of expenses received
+Subsidiaries
+295.7
+Subsidiaries
+255.0
+6.1
+Others
+40.7
+50.6
+Loans given
+Subsidiaries
+56.7
+Sun Pharma Healthcare FZE (Refer Footnote 3)
+Morley & Company, Inc. (Refer Footnote 9)
+Sun Laboratories FZE
+in Million
+Sun Global Development FZE (Refer Footnote 3)
+Caraco Pharmaceuticals Private Limited
+Sun Pharma Japan Ltd.
+263,680
+Weighted-
+average remaining
+contractual life
+Weighted-average
+exercise prices (*)
+Range of exercise
+prices (*)
+Stock options
+(numbers)
+March 31, 2019
+Annual Report 2019-20
+270.0-562.5
+NOTE: 50 BORROWINGS
+* Includes options exercised, pending allotment
+Exercisable at the end of the year
+Outstanding at the end of the year
+Lapsed during the year
+Exercised during the year $
+Outstanding at the commencement of the year
+for the year ended March 31, 2020
+$ Weighted average share price on the date of exercise ₹492.6
+Notes to the Standalone Financial Statements
+450.3
+1.5
+Details of long term borrowings and current maturities of long term debt (included under other current financial liabilities)
+Unsecured External Commercial Borrowings (ECBs) has 3 loans aggregating of US$175 Million (March 31,
+2019: US$290 Million) equivalent to 13,200.3 Million (March 31, 2019: 20,036.1 Million) and 1 loan of JPY
+5,317.5 Million (March 31, 2019 : Nil) equivalent to ₹3,699.9 Million (March 31, 2019: Nil). For the ECB loans
+outstanding as at March 31, 2020, the terms of repayment for borrowings are as follows:
+(1)
+0.9
+562.5
+562.5
+158,739
+0.9
+(years)
+562.5
+158,739
+275.0
+270.0-562.5
+(93,151)
+324.9
+270.0-562.5
+(11,790)
+562.5
+(a) US$Nil (March 31, 2019: US$10 Million) equivalent to Nil (March 31, 2019 : ₹690.9 Million). The loan was taken
+in tranches of US$16 Million on March 24, 2017 and US$10 Million on June 30, 2017. The first installment of
+US$16 Million has been repaid during the year ended March 31, 2019 and last installment of US$10 Million has
+been repaid in current year.
+The Transformation Journey
+(20,354.5)
+Intangible assets consisting of trademarks, designs, technical knowhow, non compete fees and other intangible assets
+are available to the Company in perpetuity. The amortisable amount of intangible assets is arrived at based on the
+management's best estimates of useful lives of such assets after due consideration as regards their expected usage,
+the product life cycles, technical and technological obsolescence, market demand for products, competition and their
+expected future benefits to the Company.
+The Company was a defendant in a number of putative class action lawsuits and individual actions brought by
+purchasers and payors, as well as a generic manufacturer in US alleging that the Company and its affiliates violated
+antitrust laws in connection with a 2005 patent settlement agreement with Cephalon concerning Modafinil. The
+cases were transferred to the United States District Court for the Eastern District of Pennsylvania for coordinated
+proceedings. Subsequently, the Company reached settlements in these coordinated proceedings. The Company
+accounted for an amount of *12,383.8 Million in the year ended on March 31, 2019, of which 12,143.8 Million was
+disclosed as an exceptional item. During the year ended March 31, 2020, the Company entered into a settlement
+agreement with the last remaining Plaintiff of these coordinated proceedings and the settlement amount has been
+grouped in other expenses.
+161 >>
+Financial Statements
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+2
+3
+5
+6
+7
+8
+9
+Since the US-FDA import alert at Karkhadi facility in March 2014, the Company remained fully committed to
+implement all corrective measures to address the observations made by the US-FDA with the help of third party
+consultant. The Company has completed all the action items to address the US-FDA warning letter observations
+issued in May 2014. It is continuing to work closely and co-operatively with the US-FDA to resolve the matter for
+lifting the import alert. The contribution of this facility to Company's revenues is not significant.
+The US-FDA, on January 23, 2014, had prohibited using API manufactured at Toansa facility for manufacture of
+finished drug products intended for distribution in the U.S. market. Consequentially, the Toansa manufacturing
+facility was subject to certain provisions of the consent decree of permanent injunction entered in January 2012 by
+erstwhile Ranbaxy Laboratories Ltd (which was merged with Sun Pharmaceutical Industries Ltd in March 2015). In
+addition, the Department of Justice of the USA ('US DOJ'), United States Attorney's Office for the District of New
+Jersey had also issued an administrative subpoena dated March 13, 2014 seeking information. The Company is
+continuing to fully co-operate and provide requisite information to the US DOJ.
+4
+(12,292.9)
+1
+The performance obligation is satisfied when control of the goods or services are transferred to the customers based on
+the contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
+(13,045.7)
+(20,997.6)
+119,067.4
+97,832.9
+Contract balances
+Trade receivables
+Contract assets
+NOTE: 56
+Contract liabilities
+As at
+March 31, 2020
+As at
+March 31, 2019
+61,681.3
+434.1
+50,314.7
+5,884.9
+3,014.1
+Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
+revenue received from customer for which performance obligation has not yet been completed.
+in Million
+In December 2019, the USFDA inspected the Halol facility and issued Form 483 with 8 observations. Post the
+submission of the company's response in January 2020, the USFDA classified the inspection status as Official Action
+Indicated (OAI). The company is in continuous communication with the USFDA to resolve the outstanding issues from
+the December 2019 inspection. The Company continues to manufacture and distribute products to the U.S from this
+facility. However, the OAI status normally implies that the USFDA may put all new approvals from the Halol facility
+on hold till the outstanding corrective actions are completed.
+(b) US$Nil (March 31, 2019: US$30 Million) equivalent to Nil (March 31, 2019: 2,072.7 Million). The loan was
+taken on September 08, 2017 and has been repaid in current year.
+6,909.0 Million). The loan was taken on June 04, 2013 and is repayable in 3 installments viz. first installment of
+US$30 Million is due on June 01, 2020, second installment of US$30 Million is due on December 01, 2020 and
+last installment of US$40 Million is due on December 01, 2021.
+a) Litigations [Refer Note 2 (2.2) (m) and Note 39]
+The preparation of the Company's financial statements requires the management to make judgements, estimates and
+assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
+disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and
+underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
+in which the estimates are revised and in any future periods affected. In particular, information about significant areas of
+estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the
+amounts recognised in the financial statements is included in the following notes:
+NOTE: 54 USE OF ESTIMATES, JUDGMENTS AND ASSUMPTIONS
+(*) includes provision for trade commitments, discounts, rebates, price reduction and product returns.
+22,561.8
+(5,724.3)
+(1,749.6)
+22,335.8
+b)
+1,417.3
+At the end of the year
+Less: Utilisation/settlement/reversal
+Add/(less): Foreign currency exchange fluctuation
+Add: Unwinding of discounts on provisions
+Add: Provision for the year
+At the commencement of the year
+25,815.3
+1,006.8
+46.7
+Product and
+Sales related *
+Revenue [Refer Note 2(2.2)(n)]
+Impairment of goodwill and intangible assets [Refer Note 2(2.2) (g)]
+118,830.5
+Year ended
+March 31, 2020
+132,113.1
+<<168
+Rebates, discounts and price reduction
+Provision for sales return
+Less:
+Revenue as per contracted price, net of returns
+c)
+in Million
+Year ended
+March 31, 2019
+Ind AS 115 "Revenue from Contracts with Customers" was issued on March 28, 2018 and supersedes Ind AS 11
+"Construction Contracts" and Ind AS 18 "Revenue" and it applies, with limited exceptions, to all revenue arising from
+contracts with its customers. The Company adopted Ind AS 115 using the modified retrospective method of adoption with
+the date of initial application of April 01, 2018 which does not require restatement of comparative period. The Company
+elected to apply the standard to all contracts as at April 01, 2018. There is no impact to be recognised at the date of
+initial application as an adjustment to the opening balance of retained earnings. Further, the Company has recorded an
+additional amount of ₹1,326.5 Million (March 31, 2019: 233.3 Million) as deferred revenue pursuant to the requirements
+of Ind AS 115. Revenue of *26.3 Million (March 31, 2019: 9.6 Million) has been recognised as Revenue from contract with
+customer in FY20 pursuant to completion of performance obligation in respect of the above contracts.
+NOTE: 55 REVENUE FROM CONTRACTS WITH CUSTOMERS
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+The Transformation Journey
+<160
+The reconciling items of revenue recognised in the statement of profit and loss with the contracted price are as follows
+(c) US$100 Million (March 31, 2019: US$100 Million) equivalent to ₹7,543.0 Million (March 31, 2019:
+in Million
+Year ended
+March 31, 2019
+Year ended
+March 31, 2020
+Product and
+Sales related *
+NOTE: 52 LOANS/ADVANCES GIVEN TO SUBSIDIARIES AND ASSOCIATES
+NOTE: 51 RELATED PARTY DISCLOSURES (IND AS 24) AS PER ANNEXURE "A"
+The Company has not defaulted on repayment of loan and interest payment thereon during the year. The aforementioned
+unsecured ECBs are availed from various banks at floating rate linked to Libor (2.14% as at March 31, 2020) and secured
+loan from department of biotechnology have been availed at a range from 2% to 3%.
+for the year ended March 31, 2020
+Notes to the Standalone Financial Statements
+Notes to the Standalone Financial Statements
+Financial Statements
+Loans/advances outstanding from subsidiaries
+159 >>>
+(g) JPY 5317.5 Million (March 31, 2019: JPY Nil) equivalent to ₹3,699.9 Million (March 31, 2019 : *Nil). The loan
+was taken on August 11, 2015 in USD. The currency of the loan was changed to JPY on August 08, 2019. The
+loan is due for repayment on February 08, 2022.
+US$Nil (March 31, 2019 : US$50 Million) equivalent to Nil (March 31, 2019: 3,454.5 Million). The loan was
+taken on August 11, 2015 and is refinanced with JPY loan, as detailed in note (g) below.
+USD 25 Million each. The first installment of US$25 Million is due on October 1, 2021 and last installment of
+US$25 Million is due on October 03, 2022.
+(f)
+(e) US$50 Million (March 31, 2019: US$50 Million) equivalent to 3,771.5 Million (March 31, 2019:
+*3,454.5 Million). The loan was taken on October 03, 2018 and is repayable in 2 equal installments of
+*3,454.5 Million). The loan was taken on September 20, 2012 and is repayable in 2 equal installments of
+USD 25 Million each. The first installment of US$25 Million has been repaid in current year and last installment
+of US$25 Million is due on September 18, 2020.
+(d) US$25 Million (March 31, 2019: US$50 Million) equivalent to 1,885.8 Million (March 31, 2019 :
+(II) Secured term loan from department of biotechnology of ₹108.2 Million (March 31, 2019: 108.2 Million) has
+been secured by hypothecation of movable assets of the Company. The loan is repayable in 10 equal half yearly
+installments commencing from December 14, 2020, last installment is due on June 14, 2025.
+22,561.8
+1,523.6
+Sun Pharmaceutical Medicare Limited, India
+Skisen Labs Private Limited, India
+In respect of any present obligation as a result of past event that could lead to a probable outflow of resources, provisions
+has been made, which would be required to settle the obligation. The said provisions are made as per the best estimate
+of the management and disclosure as per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has
+been given below:
+NOTE: 53
+These loans have been granted to the above entities for the purpose of their business.
+253.4
+10.1
+2,575.0
+258.0
+0.1
+2,575.0
+204.6
+0.1
+Zenotech Laboratories Limited, India
+4,217.2
+307.0
+0.2
+4,217.2
+in Million
+Maximum balance
+March 31, 2019
+As at
+March 31, 2019
+Maximum balance
+March 31, 2020
+As at
+March 31, 2020
+Faststone Mercantile Company Private Limited, India
+Softdeal Trading Company Private Limited, India
+186.6
+0.2
+Pola Pharma Inc. (Refer Footnote 5)
+In September 2013, the USFDA had put the Mohali facility under import alert and was also subjected to certain provisions
+of the consent decree of permanent injunction entered in January 2012 by erstwhile Ranbaxy Laboratories Ltd (which
+was merged with Sun Pharmaceutical Industries Ltd in March 2015). In March 2017, the USFDA lifted the import alert and
+indicated that the facility was in compliance with the requirements of cGMP provisions mentioned in the consent decree.
+The Mohali facility continues to demonstrate sustainable cGMP compliance as required by the consent decree. The
+Company continues to receive approval of applications, manufacture and distribute products to the U.S from this facility.
+The Scheme of Arrangement between Sun Pharma Global FZE ("the Transferor"), and the Company ("the Scheme"),
+inter-alia envisaged merger of unbranded generic pharmaceutical undertaking of the transferor (Specified business)
+into the Company. The scheme was approved by Hon'ble National Company Law Tribunal, Ahmedabad Bench on
+October 31, 2018 and became effective on December 01, 2018 upon completion of all the formalities.
+per PAUL ALVARES
+Partner
+Membership No. : 105754
+Pune, May 27, 2020
+<<164
+SUNIL R. AJMERA
+Company Secretary
+in Million
+ICAI Firm Registration No. : 324982E/E300003
+As at
+March 31, 2019
+174,817.1
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+7.5
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+Chartered Accountants
+As per our report of even date
+18-Mar-20
+8,000.0
+INE044A14542
+11-May-20
+17-Jun-20
+N/A
+N/A
+5,000.0
+5,000.0
+For SRBC & CO LLP
+INE044A14567
+Particulars
+Capital Redemption Reserve
+As at
+March 31, 2020
+7.5
+Net Worth
+190,343.2
+15 Figures for previous periods have been regrouped/reclassified wherever considered necessary.
+(d) Networth and Capital redemption reserve
+18-Mar-20
+The Transformation Journey
+for the year ended March 31, 2020
+Sun Pharma (Netherlands) B.V. (Formerly known as Ranbaxy
+(Netherlands) B.V.)
+Sun Pharma France (Formerly Known as Ranbaxy Pharmacie
+Generiques)
+Ranbaxy (Malaysia) Sdn. Bhd.
+Ranbaxy Nigeria Limited
+Foundation for Disease Elimination and Control of India
+Zenotech Laboratories Limited
+Chattem Chemicals Inc.
+The Taro Development Corporation
+Alkaloida Chemical Company Zrt.
+Sun Pharmaceuticals UK Limited (Refer Footnote 4)
+Sun Pharmaceutical Industries (Australia) Pty Limited
+Aditya Acquisition Company Ltd.
+Softdeal Trading Company Private Limited
+Sun Pharmaceutical Industries (Europe) B.V.
+Sun Pharmaceuticals Germany GmbH
+Sun Pharmaceuticals France
+Sun Pharma Global FZE
+Sun Pharmaceuticals (SA) (Pty) Ltd
+Sun Global Canada Pty. Ltd. (Refer Footnote 4)
+Sun Pharma Philippines, Inc.
+Sun Pharmaceuticals Korea Ltd.
+Sun Pharmaceuticals Italia S.R.L. (Refer Footnote 4)
+Notes to the Standalone Financial Statements
+Sun Pharma Holdings
+Realstone Multitrade Private Limited
+Annual Report 2019-20
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+a
+Names of related parties and description of relationships
+Subsidiaries
+Green Eco Development Centre Limited
+Sun Pharmaceutical (Bangladesh) Limited
+Skisen Labs Private Limited
+Sun Pharmaceutical Industries, Inc.
+Sun Pharma De Mexico S.A. DE C.V.
+SPIL De Mexico S.A. DE C.V.
+Sun Pharmaceutical Peru S.A.C.
+OOO "Sun Pharmaceutical Industries" Limited
+Sun Pharma De Venezuela, C.A.
+Sun Pharma Laboratories Limited
+Faststone Mercantile Company Private Limited
+Neetnav Real Estate Private Limited
+Sun Farmaceutica Do Brasil Ltda.
+In accordance with Ind AS 108 "Operating Segments", segment information has been given in the consolidated Ind AS
+financial statements, and therefore, no separate disclosure on segment information is given in these financial statements.
+The Board of Directors at its meeting held on March 17, 2020 has approved the buy-back by the Company of its
+equity shares from the open market through stock exchange mechanism as prescribed under Buy-back regulations at
+the maximum price of $425.00 per share for an aggregate maximum amount of 17,000.0 Million.
+INE044A14559
+17-Feb-20
+ii) On purpose other than (i) above
+42.7
+1.0
+43.7
+12 The Company continues to monitor the impact of COVID-19 on its business, including its impact on customers,
+supply-chain, employees and logistics. Due care has been exercised, in concluding on significant accounting
+judgements and estimates, including in relation to recoverability of receivables, assessment of impairment of
+goodwill and intangibles, investments and inventory, based on the information available to date, while preparing the
+Company's financial results as of and for the year ended March 31, 2020.
+13
+14
+Construction/acquisition of any asset
+The Board of Directors of the Company at its meeting held on May 25, 2018 and the shareholders & unsecured
+creditors at its respective meetings held on June 04, 2019 had approved the Composite Scheme of Arrangement
+between the Company, Sun Pharma (Netherlands) B.V. and Sun Pharmaceutical Holdings USA Inc. (both being
+wholly owned subsidiaries of the Company) which inter-alia, envisaged spin-off w.e.f. April 01, 2017 of the specified
+investment undertaking 1 and 2 (as defined in the scheme of Arrangement) of the Company. On December 19,
+2019, the Hon'ble National Company Law Tribunal, Ahmedabad Bench, on interpretation ground that an outbound
+Demerger is not envisaged under Section 234 of Companies Act, 2013, did not allow the Company's petition for
+the said Composite Scheme of Arrangement. Hence no effect of the said scheme of Arrangement has been given
+in the accounts.
+The Company has issued listed unsecured commercial paper during the year.
+(a) Credit rating and change in credit rating, if any:
+Name of Credit Rating Agency
+CRISIL
+ICRA
+Rating
+CRISIL A1+
+ICRA A1+
+Information as required pursuant to Regulation 52(4) of SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015:
+163 >>
+i)
+Total
+Consequent to the amalgamation prescribed by the Scheme, all the assets and liabilities of the specified business
+were transferred to and vested in the Company with effect from April 01, 2017 ("the Appointed Date").
+The amalgamation was accounted under the "pooling of interest" method prescribed under Ind AS 103 - Business
+Combinations, as prescribed by the Scheme.
+Accordingly all the assets, liabilities, and other reserves of the specified business as on April 01, 2017 were
+transferred to the Company as per the Scheme. As prescribed by the Scheme no consideration was paid as the
+transferor is a wholly owned subsidiary of the Company. Accordingly, the resultant difference between the book
+value of assets and liabilities taken-over as on the appointed date amounting to ₹17,450.8 Million is credited to
+capital reserve account. Also, any gain or loss on translation of assets and liabilities to functional currency (i.e. *) till
+the date of order has been credited or debited to foreign currency translation reserve.
+<162
+The Transformation Journey
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+Amount spent during the year ended on March 31, 2020
+Annual Report 2019-20
+11
+Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with
+Schedule VII thereof: 43.7 Million (March 31, 2019: 39.4 Million).
+Details of CSR expenditure:
+-
+Gross amount required to be spent by the Company during the year 2019-20 is ₹26.9 Million (March 31, 2019: Nil)
+In cash
+Yet to be
+paid in cash
+10 The Company vide its press release dated January 22, 2019, had announced the transition of India domestic
+formulations distribution business from Aditya Medisales Limited (AML), to Sun Pharma Distributors Limited (SPDL),
+a wholly owned subsidiary of the Company. During the transition phase AML acted as an agent of Company.
+5,000.0
+Financial Statements
+Notes to the Standalone Financial Statements
+As at
+March 31, 2020
+0.75
+As at
+March 31, 2019
+0.56
+(ii) Debt service coverage ratio = Earnings before finance costs, exceptional item and
+tax/(Finance costs + Principal repayment for long term borrowings made during the
+period)
+3.03
+3.79
+4.51
+Note the above borrowings and interest payments do not include payment related to leases.
+Details of due dates and actual dates and amounts of repayment of listed unsecured commercial paper:
+ISIN NO
+Due Date of
+Payment
+Actual Date of
+Repayment
+Redemption Amount
+(in Million)
+INE044A14534
+17-Feb-20
+(c)
+Notes to the Standalone Financial Statements
+5.14
+9.67
+for the year ended March 31, 2020
+(b) Ratios
+Ratios and Formulae
+(i) Debt equity ratio = (Long-term borrowings + Short-term borrowings + current
+maturities of long-term borrowings)/(Total equity)
+(ii) Debt service coverage ratio = Earnings before finance costs, exceptional item and
+tax/(Finance costs + Principal repayment for borrowings made during the period)
+(iii) Interest service coverage ratio = Earnings before finance costs, Exceptional item and
+Tax/Finance costs
+(iv) Asset cover = Total assets - Intangible assets - Current liabilities excluding Short-term
+borrowings and current maturities of long-term borrowings)/(Long-term borrowings
++ Short-term borrowings + current maturities of long-term borrowings).
+4.58
+Note the above borrowings and interest payments do not include payment related to leases.
+(i) Debt service coverage ratio = Earnings before finance costs, depreciation and
+exceptional item/(Finance costs + Short-term borrowings + Current maturities of
+long-term borrowings)
+As at
+March 31, 2020
+As at
+March 31, 2019
+0.25
+0.28
+0.32
+0.13
+Alternative Ratios and Formulae
+Revenue from contract with customers
+(752.8)
+(643.1)
+There has been no delay in transferring amounts,
+required to be transferred, to the Investor Education
+and Protection Fund by the Holding Company, its
+subsidiaries, associates and joint venture incorporated
+in India, except a sum of 1.05 Million, which is held in
+abeyance due to pending legal cases.
+The Transformation Journey
+Annual Report 2019-20
+Key audit matter
+How our audit addressed the key audit matter
+COVID-19: Impact on financial reporting and audit procedures (as described in Note 65 of the consolidated Ind AS financial statements)
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+Coronavirus disease 2019 ("COVID-19), was declared a global
+pandemic by World Health Organisation. COVID-19 has
+caused severe disruptions, caused by Government actions,
+consequent business decisions or economic environment
+developments. As a measure for containment of COVID19,
+lockdowns were imposed by Governments in various
+geographies where the Group operates.
+The extent to which COVID-19 impacts the Group's operations
+will depend on future developments, which are highly
+uncertain and cannot be predicted, including new information
+which may emerge concerning the severity of the coronavirus
+and the actions to contain or treat its impact. It has led to the
+reassessment of certain assumptions and judgements used
+in preparation of financial statements. Further, the lockdown
+restrictions caused by COVID19 has also necessitated
+alternative audit procedures to be used and required us to
+exercise significant judgement on their use.
+•
+•
+•
+•
+Inquired with the Group on Government actions including tax breaks and
+incentives, consequent business decisions, subsequent events and other
+economic developments which could have an impact on the financial
+statements and ascertained whether the impact has been appropriately
+recorded.
+Inquired with management the exposure to litigation or financial
+penalties that could adversely impact the Group's financial results in
+case of material interruption of supply and invocation of failure to
+supply clauses in several long-term contracts with customers in various
+geographies, including the United States. Obtained and read the relevant
+agreements and correspondence with customers and legal counsel to
+assess the appropriateness of the impact of such clauses.
+Revisited the assumptions in the ECL model to assess if any change was
+required to incorporate the impact of COVID 19.
+Assessed the impact of COVID 19 on assumptions in matters involving
+use of significant judgements and estimations. Such matters are
+described in section Litigations, Rebates, discounts, chargebacks,
+returns and other allowances, Goodwill and other intangible assets & Tax
+litigations and recognition of deferred tax assets of our audit report.
+Regular inventory counts which are performed as at year-end could not
+be performed and hence alternative procedures have been performed
+and the inventory balances have been rolled back to year-end. The
+alternative procedures also involved, engaging independent Chartered
+Accountants to conduct post year-end stock counts and roll back
+procedures under our direction and supervision in locations where it was
+impracticable for us to do.
+173≫
+Financial Statements
+OTHER INFORMATION
+Our opinion on the consolidated Ind AS financial
+statements does not cover the other information and we
+do not express any form of assurance conclusion thereon.
+In connection with our audit of the consolidated Ind AS
+financial statements, our responsibility is to read the other
+information and in doing so consider whether such other
+information is materially inconsistent with the consolidated
+Ind AS financial statements or our knowledge obtained in
+the audit or otherwise appears to be materially misstated.
+If, based on the work we have performed, we conclude that
+there is a material misstatement of this other information,
+we are required to report that fact. We have nothing to
+report in this regard.
+RESPONSIBILITIES OF MANAGEMENT FOR
+THE CONSOLIDATED IND AS FINANCIAL
+STATEMENTS
+The Holding Company's Board of Directors is responsible
+for the preparation and presentation of these consolidated
+Ind AS financial statements in terms of the requirements
+of the Act that give a true and fair view of the consolidated
+financial position, consolidated financial performance
+including other comprehensive income, consolidated cash
+flows and consolidated statement of changes in equity
+of the Group including its associates and joint venture
+in accordance with the accounting principles generally
+accepted in India, including the Indian Accounting
+Standards (Ind AS) specified under section 133 of the Act
+read with the Companies (Indian Accounting Standards)
+Rules, 2015, as amended. The respective Board of
+Directors of the companies included in the Group
+and of its associates and joint venture are responsible
+for maintenance of adequate accounting records in
+accordance with the provisions of the Act for safeguarding
+of the assets of the Group and of its associates and
+joint venture and for preventing and detecting frauds
+and other irregularities; selection and application of
+appropriate accounting policies; making judgments and
+estimates that are reasonable and prudent; and the design,
+implementation and maintenance of adequate internal
+financial controls, that were operating effectively for
+ensuring the accuracy and completeness of the accounting
+records, relevant to the preparation and presentation of
+the consolidated Ind AS financial statements that give a
+true and fair view and are free from material misstatement,
+whether due to fraud or error, which have been used
+for the purpose of preparation of the consolidated Ind
+AS financial statements by the Directors of the Holding
+Company, as aforesaid.
+In preparing the consolidated Ind AS financial statements,
+the respective Board of Directors of the companies
+included in the Group and of its associates and joint
+venture are responsible for assessing the ability of the
+Group and of its associates and joint venture to continue as
+a going concern, disclosing, as applicable, matters related
+to going concern and using the going concern basis of
+accounting unless management either intends to liquidate
+the Group or to cease operations, or has no realistic
+alternative but to do so.
+Those respective Board of Directors of the companies
+included in the Group and of its associates and joint
+venture are also responsible for overseeing the financial
+reporting process of the Group and of its associates
+and joint venture.
+AUDITOR'S RESPONSIBILITIES FOR THE AUDIT
+OF THE CONSOLIDATED IND AS FINANCIAL
+STATEMENTS
+<172
+Evaluated the disclosures in the consolidated Ind AS financial statements.
+Assessed the appropriateness of conclusions reached by the Group
+with respect to the accounting related to the change of the functional
+currency.
+Reviewed position papers and analysis prepared by management and
+management's specialist.
+Key audit matter
+How our audit addressed the key audit matter
+Tax litigations and recognition of deferred tax assets (as described in note 39 and 50 of the consolidated Ind AS financial statements)
+The Group has significant tax litigations for which the Group
+assesses the outcome on a case-to-case basis considering the
+underlying facts of each tax litigation. Adverse outcomes could
+significantly impact the Group's reported profit and balance
+sheet position.
+The assessment of outcome of litigations involves significant
+judgement which is dependent on the facts of each case,
+supporting judicial precedents and legal opinions of external
+and internal legal counsels and hence has been considered as a
+Key Audit Matter.
+Recognition of deferred tax assets involves the assessment
+of its recoverability within the allowed time frame involves
+significant estimate of the financial projections, availability
+of sufficient taxable income in the future and also involves
+significant judgements in the interpretation of tax regulations
+and tax positions adopted by the Group.
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+Evaluated the design and tested the operating effectiveness of controls
+in respect of the identification and evaluation of tax litigations/deferred
+tax and the recording and re-assessment of the related liabilities/assets
+and provisions and disclosures.
+Obtained complete list of ongoing tax litigations from management
+along-with their assessment of the cases based on past precedents,
+judgements and matters in the jurisdiction, legal opinions sought by
+management, correspondences with tax department etc.
+Engaged tax specialists, to evaluate management's assessment of the
+outcome of these litigations.
+Our specialists considered legal precedence and other rulings in
+evaluating management's position on these tax litigations.
+Tested management's assumptions including forecasts and sensitivity
+analysis in respect of recoverability of deferred taxes on unabsorbed
+depreciation/carry forward losses.
+Evaluated disclosures of the tax positions, tax loss carry forwards and tax
+litigations in the consolidated Ind AS financial statements.
+Identification and disclosure of related parties (as described in note 74 of the consolidated Ind AS financial statements)
+The Group has related party transactions which include,
+amongst others, sale and purchase of goods/services to its
+associates, joint ventures and other related parties and lending
+and borrowing to its associates and joint ventures.
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+We focused on identification and disclosure of related parties
+in accordance with relevant accounting standards as a key
+audit matter.
+•
+•
+•
+Evaluated the design and tested the operating effectiveness of controls
+over identification and disclosure of related party transactions.
+Obtained a list of related parties from the Group's management
+and traced the related parties to declarations given by directors,
+where applicable, and to note 74 of the consolidated Ind AS financial
+statements.
+Read minutes of the meetings of the Board of Directors and Audit
+Committee.
+Tested material creditors/debtors, loan outstanding/loans taken to
+evaluate existence of any related party relationships; tested transactions
+based on declarations of related party transactions given to the Board of
+Directors and Audit Committee.
+Evaluated the disclosures in the consolidated Ind AS financial statements
+for compliance with Ind AS 24.
+Functional currency related to Taro Canada (as described in Note 70 of the consolidated Ind AS financial statements)
+As described in Note 70 to the consolidated financial
+statements, the Group changed Taro Canada's functional
+currency to the USD effective as of April 1, 2019. The change
+in the functional currency involved significant management's
+judgment in evaluating relevant facts and circumstances.
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+We identified the accounting evaluation supporting the change
+in the functional currency as a key audit matter which involved
+management judgment in evaluating the primary and other
+indicators under Ind AS 21 to assess the currency which most
+faithfully represents the economic effects of the underlying
+transactions, events and conditions in the light of business
+changes. This also involved significant auditor attention and
+judgment due to the nature and materiality of the matter.
+•
+Evaluated and tested the operating effectiveness of the controls over
+accounting evaluation for change in the functional currency.
+Evaluated the relevant facts and circumstances related to the
+determination of the functional currency.
+Our objectives are to obtain reasonable assurance about
+whether the consolidated Ind AS financial statements as a
+whole are free from material misstatement, whether due to
+fraud or error, and to issue an auditor's report that includes
+our opinion. Reasonable assurance is a high level of
+assurance, but is not a guarantee that an audit conducted
+in accordance with SAs will always detect a material
+misstatement when it exists. Misstatements can arise from
+fraud or error and are considered material if, individually
+or in the aggregate, they could reasonably be expected
+to influence the economic decisions of users taken on the
+basis of these consolidated Ind AS financial statements.
+As part of an audit in accordance with SAs, we exercise
+professional judgment and maintain professional skepticism
+throughout the audit. We also:
+• Identify and assess the risks of material misstatement
+of the consolidated Ind AS financial statements,
+whether due to fraud or error, design and perform audit
+procedures responsive to those risks, and obtain audit
+evidence that is sufficient and appropriate to provide a
+basis for our opinion. The risk of not detecting a material
+misstatement resulting from fraud is higher than for
+one resulting from error, as fraud may involve collusion,
+forgery, intentional omissions, misrepresentations, or
+the override of internal control.
+<174
+in the Auditor's Report in accordance with Rule 11
+of the Companies (Audit and Auditors) Rules, 2014,
+as amended, in our opinion and to the best of our
+information and according to the explanations given
+to us and based on the consideration of the report of
+the other auditors on separate financial statements as
+also the other financial information of the subsidiaries,
+associates and joint venture, as noted in the 'Other
+Matter' paragraph:
+i.
+The consolidated Ind AS financial statements
+disclose the impact of pending litigations on its
+consolidated financial position of the Group, its
+associates and joint venture in its consolidated
+iii.
+ii.
+Ind AS financial statements - Refer Note 39 to
+the consolidated Ind AS financial statements;
+Provision has been made in the consolidated
+Ind AS financial statements, as required under
+the applicable law or accounting standards, for
+material foreseeable losses, if any, on long-term
+contracts including derivative contracts - Refer
+(a) Note 23 and 28 to the consolidated Ind AS
+financial statements in respect of such items as
+it relates to the Group, its associates and joint
+venture and (b) the Group's share of net profit/
+loss in respect of its associates;
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+per Paul Alvares
+Partner
+Membership Number: 105754
+UDIN: 20105754AAAACT7968
+(h) With respect to the other matters to be included
+Place of Signature: Pune
+Date: May 27, 2020
+Financial Statements
+Annexure 1 to the Independent Auditors Report of Even Date on the Consolidated
+Ind AS Financial Statements of Sun Pharmaceutical Industries Limited
+REPORT ON THE INTERNAL FINANCIAL
+CONTROLS UNDER CLAUSE (I) OF SUB-SECTION
+3 OF SECTION 143 OF THE COMPANIES ACT,
+2013 ("THE ACT")
+In conjunction with our audit of the consolidated Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited as of and for the year ended March 31, 2020, we
+have audited the internal financial controls over financial
+reporting of Sun Pharmaceutical Industries Limited
+(hereinafter referred to as the "Holding Company”) and its
+subsidiary companies, which are companies incorporated in
+India, as of that date.
+MANAGEMENT'S RESPONSIBILITY FOR
+INTERNAL FINANCIAL CONTROLS
+The respective Board of Directors of the Holding
+Company, its subsidiary companies, which are companies
+incorporated in India, are responsible for establishing and
+maintaining internal financial controls based on the internal
+control over financial reporting criteria established by the
+Holding Company considering the essential components
+of internal control stated in the Guidance Note on Audit of
+Internal Financial Controls Over Financial Reporting issued
+by the Institute of Chartered Accountants of India. These
+responsibilities include the design, implementation and
+maintenance of adequate internal financial controls that
+were operating effectively for ensuring the orderly and
+efficient conduct of its business, including adherence to
+the respective company's policies, the safeguarding of its
+assets, the prevention and detection of frauds and errors,
+the accuracy and completeness of the accounting records,
+and the timely preparation of reliable financial information,
+as required under the Act.
+AUDITOR'S RESPONSIBILITY
+Our responsibility is to express an opinion on the
+company's internal financial controls over financial
+reporting with reference to these consolidated Ind AS
+financial statements based on our audit. We conducted our
+audit in accordance with the Guidance Note on Audit of
+Internal Financial Controls Over Financial Reporting (the
+"Guidance Note") and the Standards on Auditing, both,
+issued by Institute of Chartered Accountants of India, and
+deemed to be prescribed under section 143(10) of the Act,
+to the extent applicable to an audit of internal financial
+controls. Those Standards and the Guidance Note require
+that we comply with ethical requirements and plan and
+perform the audit to obtain reasonable assurance about
+whether adequate internal financial controls over financial
+reporting with reference to these consolidated Ind AS
+financial statements was established and maintained and
+if such controls operated effectively in all material respects.
+Our audit involves performing procedures to obtain audit
+evidence about the adequacy of the internal financial
+controls over financial reporting with reference to these
+consolidated Ind AS financial statements and their
+operating effectiveness. Our audit of internal financial
+controls over financial reporting included obtaining an
+understanding of internal financial controls over financial
+reporting with reference to these consolidated Ind AS
+financial statements, assessing the risk that a material
+weakness exists, and testing and evaluating the design
+and operating effectiveness of internal control based on
+the assessed risk. The procedures selected depend on
+the auditor's judgement, including the assessment of the
+risks of material misstatement of the financial statements,
+whether due to fraud or error.
+We believe that the audit evidence we have obtained and
+the audit evidence obtained by the other auditors in terms
+of their reports referred to in the Other Matters paragraph
+below, is sufficient and appropriate to provide a basis for
+our audit opinion on the internal financial controls over
+financial reporting with reference to these consolidated Ind
+AS financial statements.
+MEANING OF INTERNAL FINANCIAL
+CONTROLS OVER FINANCIAL REPORTING
+WITH REFERENCE TO THESE CONSOLIDATED
+FINANCIAL STATEMENTS
+A company's internal financial control over financial
+reporting with reference to these consolidated Ind AS
+financial statements is a process designed to provide
+reasonable assurance regarding the reliability of financial
+reporting and the preparation of financial statements for
+external purposes in accordance with generally accepted
+accounting principles. A company's internal financial
+control over financial reporting with reference to these
+consolidated financial statements includes those policies
+and procedures that (1) pertain to the maintenance of
+records that, in reasonable detail, accurately and fairly
+reflect the transactions and dispositions of the assets
+of the company; (2) provide reasonable assurance
+that transactions are recorded as necessary to permit
+preparation of financial statements in accordance with
+generally accepted accounting principles, and that receipts
+and expenditures of the company are being made only
+in accordance with authorisations of management and
+directors of the company; and (3) provide reasonable
+assurance regarding prevention or timely detection
+of unauthorised acquisition, use, or disposition of the
+company's assets that could have a material effect on the
+financial statements.
+<178
+177 >>>
+(g) In our opinion and based on the consideration of
+reports of other statutory auditors of the subsidiaries
+and associates incorporated in India, the managerial
+remuneration for the year ended March 31, 2020 has
+been paid / provided by the Holding Company, its
+subsidiaries and associates incorporated in India to
+their directors in accordance with the provisions of
+section 197 read with Schedule V to the Act;
+With respect to the adequacy and the operating
+effectiveness of the internal financial controls
+over financial reporting with reference to these
+consolidated Ind AS financial statements of the
+Holding Company and its subsidiary companies,
+incorporated in India, refer to our separate Report in
+"Annexure 1" to this report;
+(f)
+The Transformation Journey
+Annual Report 2019-20
+• Obtain an understanding of internal control relevant to
+the audit in order to design audit procedures that are
+appropriate in the circumstances. Under section 143(3)
+(i) of the Act, we are also responsible for expressing our
+opinion on whether the Holding Company has adequate
+internal financial controls with reference to financial
+statements in place and the operating effectiveness
+of such controls.
+• Evaluate the appropriateness of accounting policies used
+and the reasonableness of accounting estimates and
+related disclosures made by management.
+• Conclude on the appropriateness of management's use
+of the going concern basis of accounting and based
+on the audit evidence obtained, whether a material
+uncertainty exists related to events or conditions
+that may cast significant doubt on the ability of the
+Group and its associates and joint venture to continue
+as a going concern. If we conclude that a material
+uncertainty exists, we are required to draw attention
+in our auditor's report to the related disclosures in the
+consolidated Ind AS financial statements or, if such
+disclosures are inadequate, to modify our opinion. Our
+conclusions are based on the audit evidence obtained
+up to the date of our auditor's report. However, future
+events or conditions may cause the Group and its
+associates and joint venture to cease to continue as a
+going concern.
+• Evaluate the overall presentation, structure and
+content of the consolidated Ind AS financial statements,
+including the disclosures, and whether the consolidated
+Ind AS financial statements represent the underlying
+transactions and events in a manner that achieves
+fair presentation.
+• Obtain sufficient appropriate audit evidence regarding
+the financial information of the entities or business
+activities within the Group and its associates and joint
+venture of which we are the independent auditors
+and whose financial information we have audited, to
+express an opinion on the consolidated Ind AS financial
+statements. We are responsible for the direction,
+supervision and performance of the audit of the financial
+statements of such entities included in the consolidated
+Ind AS financial statements of which we are the
+independent auditors. For the other entities included
+in the consolidated Ind AS financial statements, which
+have been audited by other auditors, such other auditors
+remain responsible for the direction, supervision and
+performance of the audits carried out by them. We
+remain solely responsible for our audit opinion.
+We communicate with those charged with governance
+of the Holding Company and such other entities
+included in the consolidated Ind AS financial statements
+of which we are the independent auditors regarding,
+among other matters, the planned scope and timing of
+the audit and significant audit findings, including any
+significant deficiencies in internal control that we identify
+during our audit.
+We also provide those charged with governance with
+a statement that we have complied with relevant
+ethical requirements regarding independence, and to
+communicate with them all relationships and other
+matters that may reasonably be thought to bear on our
+independence, and where applicable, related safeguards.
+From the matters communicated with those charged with
+governance, we determine those matters that were of most
+significance in the audit of the consolidated Ind AS financial
+statements for the financial year ended March 31, 2020
+and are therefore the key audit matters. We describe these
+matters in our auditor's report unless law or regulation
+precludes public disclosure about the matter or when, in
+extremely rare circumstances, we determine that a matter
+should not be communicated in our report because the
+adverse consequences of doing so would reasonably
+be expected to outweigh the public interest benefits of
+such communication.
+OTHER MATTER
+(a) We did not audit the financial statements and other
+financial information, in respect of 26 subsidiaries,
+whose Ind AS financial statements, without giving
+the effect to elimination of intra group transactions,
+include total assets of 441,388.9 Million as at March
+31, 2020, and total revenues of $146,481.0 Million
+and net cash outflows of 4,596.3 Million for the year
+ended on that date. These Ind AS financial statement
+and other financial information have been audited
+by other auditors, whose financial statements, other
+financial information and auditor's reports have been
+furnished to us by management. Our opinion on the
+consolidated Ind AS financial statements, in so far
+as it relates to the amounts and disclosures included
+in respect of these subsidiaries, joint venture and
+associates, and our report in terms of sub-sections (3)
+of Section 143 of the Act, in so far as it relates to the
+aforesaid subsidiaries, is based solely on the reports of
+such other auditors.
+Certain of these subsidiaries are located outside
+India whose financial statements and other financial
+information have been prepared in accordance with
+175 >>>
+Financial Statements
+accounting principles generally accepted in their
+respective countries and which have been audited
+by other auditors under generally accepted auditing
+standards applicable in their respective countries.
+The Holding Company's management has converted
+the financial statements of such subsidiaries located
+outside India from accounting principles generally
+accepted in their respective countries to accounting
+principles generally accepted in India. We have
+audited these conversion adjustments made by
+the Holding Company's management. Our opinion
+in so far as it relates to the balances and affairs of
+such subsidiaries located outside India is based on
+the report of other auditors and the conversion
+adjustments prepared by management of the Holding
+Company and audited by us.
+(b) The accompanying consolidated Ind AS financial
+statements include unaudited financial statements
+and other unaudited financial information in respect
+of 22 subsidiaries, whose financial statements and
+other financial information, without giving the effect
+to the elimination of intra group transactions, reflect
+total assets of ₹247,169.7 Million as at March 31,
+2020, and total revenues of $5,959.1 Million and net
+cash outflows of 148.7 Million for the year ended
+on that date. These unaudited financial statements
+and other unaudited financial information have been
+furnished to us by management. The consolidated
+Ind AS financial statements also include the Group's
+share of net loss of 148.3 Million for the year ended
+March 31, 2020, as considered in the consolidated
+Ind AS financial statements, in respect of 4 associates
+and a joint venture, whose financial statements,
+other financial information have not been audited
+and whose unaudited financial statements, other
+unaudited financial information have been furnished
+to us by management. Our opinion, in so far as it
+relates amounts and disclosures included in respect
+of these subsidiaries, joint venture and associates,
+and our report in terms of sub-sections (3) of Section
+143 of the Act in so far as it relates to the aforesaid
+subsidiaries, joint venture and associates, is based
+solely on such unaudited financial statements and
+other unaudited financial information. In our opinion
+and according to the information and explanations
+given to us by management, these financial
+statements and other financial information are not
+material to the Group.
+Our opinion above on the consolidated Ind AS financial
+statements, and our report on Other Legal and Regulatory
+Requirements below, is not modified in respect of the
+above matters with respect to our reliance on the work
+done and the reports of the other auditors and the financial
+statements and other financial information certified
+by management.
+REPORT ON OTHER LEGAL AND REGULATORY
+REQUIREMENTS
+As required by Section 143(3) of the Act, based on our
+audit and on the consideration of report of the other
+auditors on separate financial statements and the other
+financial information of subsidiaries, associates and joint
+venture, as noted in the 'Other Matter' paragraph we
+report, to the extent applicable, that:
+(a) We/the other auditors whose report we have relied
+upon have sought and obtained all the information
+and explanations which to the best of our knowledge
+and belief were necessary for the purposes of
+our audit of the aforesaid consolidated Ind AS
+financial statements;
+(b) In our opinion, proper books of account as required
+by law relating to preparation of the aforesaid
+consolidation of the financial statements have been
+kept so far as it appears from our examination of
+those books and reports of the other auditors;
+(c) The consolidated Balance Sheet, the consolidated
+Statement of Profit and Loss including the Statement
+of Other Comprehensive Income, the consolidated
+Cash Flow Statement and consolidated Statement
+of Changes in Equity dealt with by this Report are in
+agreement with the books of account maintained for
+the purpose of preparation of the consolidated Ind AS
+financial statements;
+(d) In our opinion, the aforesaid consolidated Ind AS
+financial statements comply with the Accounting
+Standards specified under Section 133 of the Act,
+read with Companies (Indian Accounting Standards)
+Rules, 2015, as amended;
+(e) On the basis of the written representations received
+from the directors of the Holding Company as on
+March 31, 2020 taken on record by the Board of
+Directors of the Holding Company and the reports
+of the statutory auditors who are appointed under
+Section 139 of the Act, of its subsidiary companies,
+associate companies and joint venture, none of the
+directors of the Group's companies, its associates and
+joint venture, incorporated in India, is disqualified as
+on March 31, 2020 from being appointed as a director
+in terms of Section 164 (2) of the Act;
+<176
+The Transformation Journey
+Annual Report 2019-20
+Financial Statements
+171 >>>
+The Holding Company's Board of Directors is responsible
+for the other information. The other information comprises
+the information included in the Annual report, but does not
+include the consolidated Ind AS financial statements and
+our auditor's report thereon.
+Obtained the Group's computation of recoverable amount and tested
+the mathematical accuracy and reasonableness of key assumptions,
+including profit and cash flow forecast, terminal values, potential product
+obsolescence and the discount rates.
+March 31, 2020
+ANNEXURE "A"
+in Million
+As at
+March 31, 2019
+57,125.1
+51,257.7
+57,123.6
+49,277.3
+1.5
+1,980.4
+8,390.8
+5,411.3
+8,266.3
+5,322.8
+0.1
+0.0
+0.1
+0.3
+0.9
+124.3
+87.3
+12,191.8
+12,191.8
+4,404.0
+2,779.7
+4,404.0
+2,779.7
+62.5
+62.5
+As at
+62.5
+Annual Report 2019-20
+Lease liabilities
+The Transformation Journey
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2020
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+Balance outstanding as at the end of the year
+Receivables
+Subsidiaries
+Others
+Payable
+Subsidiaries
+Joint Venture (March 31, 2019 48,558)
+Obtained and evaluated management's sensitivity analysis to ascertain
+the impact of changes in key assumptions and performed our own
+independent sensitivity calculations to quantify the downside impact to
+determination of recoverable amount.
+Relatives of Key management personnel
+Others
+Loan taken
+Subsidiaries
+Loan given
+Subsidiaries
+Security Deposit given
+Subsidiaries
+Security Deposit Received
+Subsidiaries
+Other liabilities
+Subsidiaries
+Advance from customers
+Subsidiaries
+Advance (includes capital and supply of goods/services)
+Subsidiaries
+Associates
+Subsidiaries
+62.5
+Key management personnel
+0.1
+The results of audit procedures performed by us and
+by other auditors of components not audited by us, as
+reported by them in their audit reports furnished to
+us, including those procedures performed to address
+the matters below, provide the basis for our audit
+opinion on the accompanying consolidated Ind AS
+financial statements.
+<<170
+The Transformation Journey
+Annual Report 2019-20
+Key audit matter
+How our audit addressed the key audit matter
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+Litigations (as described in note 39 of the consolidated Ind AS financial statements)
+The Group is involved in various legal proceedings including
+product liability, contracts, employment claims, Department
+of Justice (DOJ) investigations, anti-trust and other regulatory
+matters relating to conduct of its business.
+The Group assesses the need to make provision or to disclose
+a contingent liability on a case-to-case basis considering the
+underlying facts of each litigation.
+The eventual outcome of the litigations is uncertain and
+estimation at balance sheet date involves extensive judgement
+of management including input from legal counsel due
+to complexity of each litigation. Adverse outcomes could
+significantly impact the Group's reported profit and balance
+sheet position.
+Considering the judgement involved in determining the need to
+make a provision or disclose as contingent liability, the matter
+is considered a key audit matter.
+Rebates, discounts, chargebacks, returns and other allowances
+The Group generates revenue across various geographies
+through commercial arrangements prevalent in those
+geographies. These commercial arrangements involve rebates,
+discounts, chargebacks, right to return and other allowances,
+which are deducted from the gross revenue to arrive at
+Revenue from Operations.
+These deductions involve significant judgement and
+estimation, in particular the accruals associated with the
+revenue transactions pertaining to the generics business of
+United States and is hence is considered as a key audit matter.
+•
+•
+Evaluated the design and tested the operating effectiveness of controls
+in respect of the identification, evaluation of litigations, the recording/
+re-assessment of the related liabilities, provisions and disclosures.
+Obtained a list of litigations from the Group's in-house legal counsel;
+identified material litigations from the aforementioned list and
+performed inquiries with the said counsel; obtained and read the
+underlying documents to assess the assumptions used by management in
+arriving at the conclusions.
+Circulated, obtained and read legal confirmations from Group's external
+legal counsels in respect of material litigations and considered that in our
+assessment.
+Read the disclosures related to provisions and contingent liabilities in
+the consolidated Ind AS financial statements to assess consistency with
+underlying documents.
+(as described in note 53 of the consolidated Ind AS financial statements)
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+•
+Assessed and tested the design and operating effectiveness of the
+Group's controls over the completeness, recognition and measurement of
+accrual.
+Obtained and evaluated management's computations for accruals under
+respective contractual arrangements.
+Analysed the historical pattern of chargebacks, the inventory information
+and performed retrospective reviews in order to validate management's
+assumption.
+Compared the assumptions in respect of rebates, discounts, allowances
+and returns to current payment trends.
+Evaluated adequacy of disclosures as required by Ind AS 115
+Goodwill and other intangible assets (as described in note 3b and 47 of the consolidated Ind AS financial statements)
+The Group has significant intangible assets, comprising
+acquired trademarks, product intangibles and goodwill. The
+Group conducts an annual impairment testing of goodwill and
+intangible assets using discounted cash flow method.
+Significant judgements are used to estimate the recoverable
+amount of these intangible assets and goodwill. The
+determination of recoverable amounts involves use of several
+key assumptions, including estimates of future sales volume,
+and prices, operating costs, terminal value growth rates and the
+weighted average cost of capital (discount rate) and is hence is
+considered as a key audit matter.
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+Evaluated the design and tested the operating effectiveness of
+management's controls in assessing the carrying value of goodwill and
+intangible assets.
+0.1
+We have determined the matters described below to be the
+key audit matters to be communicated in our report. We
+have fulfilled the responsibilities described in the 'Auditor's
+responsibilities for the audit of the consolidated Ind AS
+financial statements' section of our report, including in
+relation to these matters. Accordingly, our audit included
+the performance of procedures designed to respond to our
+assessment of the risks of material misstatement of the
+consolidated Ind AS financial statements. The results of
+our audit procedures, including the procedures performed
+to address the matters below, provide the basis for our
+audit opinion on the accompanying consolidated Ind AS
+financial statements.
+Key audit matters are those matters that, in our
+professional judgment, were of most significance in our
+audit of the consolidated Ind AS financial statements
+for the financial year ended March 31, 2020. These
+matters were addressed in the context of our audit of the
+consolidated Ind AS financial statements as a whole and
+in forming our opinion thereon and we do not provide
+a separate opinion on these matters. For each key audit
+matter below, our description of how our audit addressed
+the matter is provided in that context.
+Evaluated the key assumptions used by the Group by comparing it with
+prior years.
+and joint venture in accordance with the 'Code of Ethics'
+issued by the Institute of Chartered Accountants of India
+together with the ethical requirements that are relevant to
+our audit of the financial statements under the provisions
+of the Act and the Rules thereunder, and we have fulfilled
+our other ethical responsibilities in accordance with these
+requirements and the Code of Ethics. We believe that
+the audit evidence we have obtained is sufficient and
+appropriate to provide a basis for our audit opinion on the
+consolidated Ind AS financial statements.
+18,537.9
+KEY AUDIT MATTERS
+30,126.9
+18,537.9
+30,126.9
+2,130.0
+4,015.1
+2,130.0
+211.2
+511.5
+300.4
+211.2
+211.1
+1,803.1
+4,015.1
+b)
+a)
+In our opinion and to the best of our information and
+according to the explanations given to us and based on
+the consideration of reports of other auditors on separate
+financial statements and on the other financial information
+of the subsidiaries, associates and joint venture, the
+aforesaid consolidated Ind AS financial statements give
+the information required by the Companies Act, 2013, as
+amended ("the Act") in the manner so required and give
+a true and fair view in conformity with the accounting
+principles generally accepted in India, of the consolidated
+state of affairs of the Group, its associates and joint
+venture as at March 31, 2020, their consolidated profit
+including other comprehensive income, their consolidated
+cash flows and the consolidated statement of changes in
+equity for the year ended on that date.
+We have audited the accompanying consolidated Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited (hereinafter referred to as "the Holding Company"),
+its subsidiaries (the Holding Company and its subsidiaries
+together referred to as "the Group") its associates and joint
+venture comprising of the consolidated Balance sheet as
+at March 31, 2020, the consolidated Statement of Profit
+and Loss, including Statement of other comprehensive
+income, the consolidated Cash Flow Statement and the
+consolidated Statement of Changes in Equity for the
+year then ended, and notes to the consolidated Ind AS
+financial statements, including a summary of significant
+accounting policies and other explanatory information
+(hereinafter referred to as "the consolidated Ind AS
+financial statements").
+OPINION
+REPORT ON THE AUDIT OF THE
+CONSOLIDATED IND AS FINANCIAL
+STATEMENTS
+To the Members of Sun Pharmaceutical Industries Limited
+BASIS FOR OPINION
+We conducted our audit of the consolidated Ind AS
+financial statements in accordance with the Standards on
+Auditing (SAs), as specified under section 143(10) of the
+Act. Our responsibilities under those Standards are further
+described in the 'Auditor's Responsibilities for the Audit of
+the Consolidated Ind AS Financial Statements' section of
+our report. We are independent of the Group, associates
+Financial Statements
+169 »
+Provision includes obligation arising from a supply contract to Sun Laboratories FZE, a wholly owned subsidiary of
+the Company amounting to ₹19,776.8 Million (March 31, 2019: 20,758.2 Million). These right and obligation were
+acquired by Sun Laboratories FZE from Atlas Global Trading LLC in the previous year.
+The sales to and purchases from related parties are made on an arm's length basis. Outstanding trade balances at the
+year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any
+related party receivables or payables. For the year ended March 31, 2020, the Company has recorded impairment
+of receivables relating to amounts owed by related parties (wholly owned subsidiaries) amounting to *59.9 Million
+(March 31, 2019: 59.9 Million).
+Independent Auditor's Report
+hedges
+reserve
+Expenditure on buy-back of equity
+shares by Parent company
+(13,789.6)
+(2,834.5)
+44.5 (13,745.1)
+(2,834.5)
+Payment of dividend
+Dividend distribution tax
+Buy-back purchase of equity
+shares by overseas subsidiaries
+company
+(13,789.6)
+(2,834.5)
+(831.6)
+Transfer from surplus in
+consolidated statement of profit
+and loss as per the local law of an
+(58.8)
+23.0
+(23.0)
+43.8
+7.5 230.5 35,621.0 353,200.5
+TOTAL
+(533.6)
+Balance as at March 31, 2020
+overseas subsidiaries
+(Refer note 73)
+Non-
+controlling
+interests
+Debt
+Effective
+portion of
+cash flow
+62,927.9
+6,859.5
+2,399.3
+Consolidated Statement of Changes in Equity
+Consolidated Statement of Changes in Equity
+for the year ended March 31, 2020
+Particulars
+* in Million
+Other equity
+Reserves and surplus
+Other comprehensive income (OCI)
+to owners
+of Parent
+Company
+Attributable
+share Capital Securities
+capital
+reserve premium
+Debenture
+redemption
+reserve
+Amalgamation
+Capital
+redemption
+Legal General
+reserve
+reserve
+reserve
+Retained
+earnings
+reserve
+Equity Foreign
+instrument instrument currency
+through through translation
+OCI
+OCI
+Equity
+3,681.7 11,874.1
+A. Cash flow from operating activities
+^ (March 31, 2019: 11,790)
+Particulars
+Consolidated Cash Flow Statement
+In Million
+Year ended
+March 31, 2020
+Year ended
+March 31, 2019
+Profit before tax
+Adjustments for:
+Depreciation and amortisation expense
+50,095.9
+38,102.0
+20,527.8
+for the year ended March 31, 2020
+17,532.5
+Loss on sale / write off of property, plant and equipment and other intangible assets, net
+Finance costs
+1.5
+12.9
+52.2
+665.6
+3,027.3
+5,552.5
+Interest income
+(3,546.2)
+(6,692.1)
+37,377.3 (522.4) (883.0) 20,862.3 (765.8) 56,068.4
+Impairment of property, plant and equipment, goodwill and other intangible assets
+* Represents re-measurements of the defined benefit plans
+Consolidated Cash Flow Statement
+Annual Report 2019-20
+The accompanying notes are an integral part of the consolidated financial statements
+As per our report of even date
+For SR BC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No.: 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Pune, May 27, 2020
+185 »
+(831.6) (1,437.0) (2,268.6)
+Financial Statements
+(58.8)
+(58.8)
+749.9 45,799.0 (429.2) 452,644.5 38,602.4 491,246.9
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+SUNIL R. AJMERA
+Company Secretary
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+The Transformation Journey
+(2,582.2)
+366.1
+(2,443.2)
+* in Million
+(ii) Loans
+Investments
+(i)
+(h) Financial assets
+(g) Investment in joint venture
+(f) Investment in associates
+(e) Intangible assets under development
+(d) Other intangible assets
+(c) Goodwill (Net)
+(b) Capital work-in-progress
+(a) Property, plant and equipment
+(1) Non-current assets
+ASSETS
+Particulars
+Consolidated Balance Sheet
+as at March 31, 2020
+Consolidated Balance Sheet
+Financial Statements
+179 >>
+Place of Signature: Pune
+Date: May 27, 2020
+Membership Number: 105754
+UDIN: 20105754AAAACT7968
+per Paul Alvares
+Partner
+Notes
+As at
+March 31, 2020
+As at
+March 31, 2019
+3A (I) & (II)
+Dividend income on investments
+(iii) Other financial assets
+170.4
+7.9
+7
+37,092.7
+50,027.9
+6
+262.0
+275.7
+2,163.4
+ICAI Firm Registration Number: 324982E/E300003
+2,153.9
+5,003.6
+5,614.3
+58,533.5
+57,980.2
+3B
+59,557.7
+64,814.6
+47
+9,107.9
+100,274.2
+105,674.3
+6,589.1
+45
+Chartered Accountants
+For S RBC & CO LLP
+Our report under Section 143(3)(i) of the Act on the
+adequacy and operating effectiveness of the internal
+financial controls over financial reporting with reference to
+these consolidated Ind AS financial Ind AS statements of
+the Holding Company, insofar as it relates to 1 subsidiary
+company, which is company incorporated in India, is based
+on the corresponding reports of the auditors of such
+subsidiary incorporated in India.
+(6,493.0)
+Issue of equity shares
+^ 0.0
+3.8
+583.3
+3.8
+Balance as at March 31, 2019
+Profit for the year
+2,399.3 3,681.7 11,932.9
+43.8
+7.5
+207.5 35,621.0 333,301.9
+37,649.3
+(6,493.0)
+(11.2) 1,632.9 24,936.7
+Exchange difference arising on
+translation of foreign operations/
+20,862.3
+414,090.6
+37,649.3
+20,862.3
+33,135.4 447,226.0
+4,070.3 41,719.6
+2,928.2 23,790.5
+net investment in foreign
+operations, net of tax
+Other comprehensive income for
+the year, net of tax
+Total comprehensive income for
+the year
+*(272.0)
+(522.4) (883.0)
+(765.8)
+336.6
+(139.0)
+(6,088.2)
+43.0 (246.9)
+OTHER MATTERS
+statements were operating effectively as at March 31,
+2020, based on the internal control over financial reporting
+criteria established by the Holding Company considering
+the essential components of internal control stated in the
+Guidance Note on Audit of Internal Financial Controls Over
+Financial Reporting issued by the Institute of Chartered
+Accountants of India.
+In our opinion, the Holding Company and its subsidiary
+companies, which are companies incorporated in India,
+have, maintained in all material respects, adequate internal
+financial controls over financial reporting with reference
+to these consolidated Ind AS financial statements and
+such internal financial controls over financial reporting
+with reference to these consolidated Ind AS financial
+OPINION
+Because of the inherent limitations of internal financial
+controls over financial reporting with reference to these
+consolidated Ind AS financial statements, including the
+possibility of collusion or improper management override
+of controls, material misstatements due to error or fraud
+may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial
+reporting with reference to these consolidated Ind AS
+financial statements to future periods are subject to
+the risk that the internal financial control over financial
+reporting with reference to these consolidated Ind AS
+financial statements may become inadequate because of
+changes in conditions, or that the degree of compliance
+with the policies or procedures may deteriorate.
+INHERENT LIMITATIONS OF INTERNAL
+FINANCIAL CONTROLS OVER FINANCIAL
+REPORTING WITH REFERENCE TO THESE
+CONSOLIDATED IND AS FINANCIAL
+STATEMENTS
+Annual Report 2019-20
+The Transformation Journey
+636.7
+26,804.4
+82.7
+(2,013.1) (4,075.1)
+(15.7) 14,816.6 366.1
+(4,791.6)
+(4,791.6) (8,455.5) (13,247.1)
+(984.9)
+(984.9)
+(984.9)
+3,174.2
+3,174.2
+1,250.0
+(2,013.1)
+(6,493.0)
+203.9
+42,054.1 6,824.4 48,878.5
+(561.8)
+3,635.2
+Net gain arising on financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net (gain)/ loss on sale of financial assets measured at fair value through other
+comprehensive income
+In deposit accounts with original maturity less than 3 months
+Cheques, drafts on hand
+Cash on hand
+Cash and cash equivalents (Refer note 14)
+As at
+March 31, 2020
+* In Million
+As at
+March 31, 2019
+18,936.0
+37,662.8
+33,540.6
+36,308.9
+152.7
+14.6
+764.3
+9.2
+56,766.1
+70,623.0
+187 >>>
+Financial Statements
+Consolidated Cash Flow Statement | Notes to the Consolidated Financial Statements
+Consolidated Cash Flow Statement
+for the year ended March 31, 2020
+Change in financial liability/ asset arising from financing activities
+Particulars
+Year ended March 31, 2020
+Borrowings #
+In current accounts
+Balances with banks
+Particulars
+Cash and cash equivalents comprises of
+Net cash used in financing activities (C)
+(13,791.9)
+(4,801.8)
+(2,834.5)
+(984.9)
+(57,151.4)
+(27,305.2)
+Net (decrease) / increase in cash and cash equivalents (A+B+C)
+(17,492.1)
+(12,153.2)
+Cash and cash equivalents at the beginning of the year
+105,143.6
+70,623.0
+Cash and cash equivalents taken over on acquisition of subsidiary
+455.2
+Effect of exchange differences on restatement of foreign currency cash and cash equivalents
+8
+3,256.5
+Cash and cash equivalents at the end of the year
+56,766.1
+70,623.0
+@ Includes payment of lease obligation.
+Represents amount transferred to escrow account in compliance with Securities and Exchange Board of India (Buy-back of Securities)
+Regulation, 2018.
+Notes:
+79,064.5
+Dividend distribution tax
+Derivatives, net
+[(Liabilities) /
+Asset]
+Opening balance
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Pune, May 27, 2020
+188
+754.1
+(2,372.0)
+(827.8)
+3,300.1
+73.7
+362.8
+105,143.6
+94.8
+94.8
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+SUNIL R. AJMERA
+Company Secretary
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the consolidated financial statements
+Closing balance
+Changes from financing cash flows
+The effect of changes in foreign exchange rates
+Other changes
+Changes in fair value
+Closing balance
+(29,790.0)
+5,590.1
+(1,235.2)
+79,708.5
+# Closing balance of Borrowing excludes Lease liability and the reversal of opening lease liability has been considered in other changes.
+Particulars
+94.8
+Year ended March 31, 2019
+103,852.7
+(265.4)
+50.7
+(235.1)
+(355.0)
+Derivatives, net
+[(Liabilities) /
+Asset]
+Opening balance
+Changes from financing cash flows
+The effect of changes in foreign exchange rates
+Other changes
+Changes in fair value
+Borrowings
+Dividend paid
+(4,606.6)
+(2,718.9)
+(8,578.4)
+(1,751.9)
+993.7
+(1,365.7)
+(8,544.6)
+2,363.3
+137.2
+10,912.6
+(3,877.9)
+79,006.8
+30,828.6
+Income tax paid (net of refund)
+(13,459.1)
+(8,864.1)
+Net cash generated from operating activities (A)
+65,547.7
+21,964.5
+B. Cash flow from investing activities
+Payments for purchase of property, plant and equipment (including capital work-in-progress,
+(15,420.0)
+(32,128.2)
+other intangible assets and intangible assets under development)
+Proceeds from disposal of property, plant and equipment and other
+intangible assets
+(3,740.5)
+(7,090.0)
+2,567.7
+57,788.6
+(571.9)
+(1,433.6)
+(246.7)
+(180.3)
+(0.4)
+0.1
+Provision / write off /(reversal) for doubtful trade receivables / advances
+Sundry balances written back, net
+1,068.1
+(339.4)
+(52.2)
+(64.5)
+920.3
+Effect of exchange rate changes
+Movements in working capital:
+(Increase) Decrease in inventories
+(Increase) Decrease in trade receivables
+(Increase) Decrease in other assets
+Increase / (Decrease) in trade payables
+Increase (Decrease) in other liabilities
+Increase (Decrease) in provisions
+Cash generated from operations
+227.7
+4,856.7
+70,021.3
+Operating profit before working capital changes
+504.7
+Loans/inter corporate deposits given placed
+Loans / inter corporate deposits received back / matured
+Year ended
+March 31, 2020
+In Million
+Year ended
+March 31, 2019
+C. Cash flow from financing activities
+Proceeds from borrowings
+Repayment of borrowings @
+105,515.7
+176,975.2
+(138,934.6)
+(168,073.7)
+Payment for buy-back of equity shares of parent and buy-back of equity shares held by non-
+controlling interests of subsidiaries
+Annual Report 2019-20
+(2,124.8)
+Dividend payment to non-controlling interests
+(201.4)
+(8,455.5)
+Net increase / (decrease) in working capital demand loans
+2,189.0
+(11,273.5)
+Proceeds from issue of equity shares on exercise of stock options / share application money
+received
+3.8
+Transfer to escrow account for buy-back
+(4,250.0)
+Finance costs
+(6,088.2)
+(223.8)
+Particulars
+Consolidated Cash Flow Statement
+Purchase of investments
+Proceeds from sale of investments
+Bank balances not considered as cash and cash equivalents
+Fixed deposits/margin money placed
+Fixed deposits / margin money matured
+Net cash outflow on acquisition of subsidiary
+Interest received
+Dividend received
+Net cash used in investing activities (B)
+K186
+(191.3)
+1,875.4
+(334,453.9)
+318,936.3
+for the year ended March 31, 2020
+(783.3)
+352,070.3
+(9,694.5)
+(4,486.1)
+8,192.9
+23,897.5
+(228.0)
+3,384.6
+561.8
+(25,888.4)
+6,843.4
+223.8
+(6,812.5)
+The Transformation Journey
+1,230.7
+(353,957.3)
+1,048.8
+3.8
+(i) Deferred tax assets (Net)
+(A) Items that will not be reclassified to profit or loss
+(XV) Other comprehensive income
+26,654.2
+5,424.4
+4,070.3
+37,649.3
+(XIV) Profit for the year attributable to owners of the Company (XII-XIII)
+71
+(XIII) Non-controlling interests
+32,078.6
+(7.5)
+(10.0)
+41,719.6
+(XII) Profit for the year before non-controlling interests (IX+X+XI)
+(XI) Share of profit/(loss) of joint venture (net of tax)
+(a) Gain/(loss) on re-measurements of the defined benefit plans
+Income tax on above
+(7.1)
+(X) Share of profit/(loss) of associates (net of tax)
+32,093.2
+41,867.9
+(IX) Profit for the year before share of profit/(loss) of associates and joint venture (VII-VIII)
+6,008.8
+8,228.0
+49
+Total tax expense (VIII)
+(2,030.8)
+(4,973.4)
+8,039.6
+13,201.4
+Deferred tax
+(138.3)
+Current tax
+(417.7)
+145.9
+(80.7)
+(4.0)
+44.8
+105.2
+(664.2)
+Year ended
+March 31, 2019
+in Million
+Year ended
+March 31, 2020
+Notes
+(a) Gain/(loss) on debt instruments through other comprehensive income
+Income tax on above
+(B) Items that may be reclassified to profit or loss
+Particulars
+Annual Report 2019-20
+for the year ended March 31, 2020
+231.0
+Consolidated Statement of Profit and Loss
+K182
+177.1
+(1,154.7)
+Total (A)
+26.8
+(882.9)
+787.7
+13.5
+8.6
+(896.4)
+(b) Gain/(loss) on equity instruments through other comprehensive income
+Income tax on above
+150.3
+(271.8)
+The Transformation Journey
+(VIII) Tax expense/(credit)
+38,102.0
+50,095.9
+25,193.8
+34,143.7
+Purchases of stock-in-trade
+57,827.0
+55,152.3
+32
+Cost of materials consumed
+300,914.0
+334,734.8
+10,254.9
+290,659.1
+6,359.8
+31
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+328,375.0
+Year ended
+March 31, 2019
+Year ended
+March 31, 2020
+Notes
+(IV) Expenses
+(III) Total income (I+II)
+(II) Other income
+(I) Revenue from operations
+Particulars
+* in Million
+Consolidated Statement of Profit and Loss
+for the year ended March 31, 2020
+Consolidated Statement of Profit and Loss
+Financial Statements
+30
+33
+3,008.5
+(4,331.1)
+(VII) Profit before tax (V-VI)
+12,143.8
+2,606.4
+61
+(VI) Exceptional items
+50,245.8
+52,702.3
+(V) Profit before exceptional items and tax (III-IV)
+250,668.2
+932.0
+(156.1)
+282,032.5
+Total expenses (IV)
+Net (gain) / loss on foreign currency transactions
+88,290.6
+102,705.5
+36
+Other expenses
+17,532.5
+20,527.8
+3 (A & B)
+Depreciation and amortisation expense
+5,552.5
+3,027.3
+35
+Finance costs
+59,670.9
+63,623.5
+34
+Employee benefits expense
+(619.4)
+181 >>>
+101.2
+(1,184.4)
+(93.9) 1,648.6 10,120.1
+3.6 35,578.0 319,777.0
+26,654.2
+Profit for the year
+7.5
+43.8
+507.5 11,929.1 1,250.0
+2,399.3
+Balance as at March 31, 2018
+TOTAL
+Non-
+controlling
+interests
+to owners
+of Parent
+Company
+Effective
+portion of
+cash flow
+hedges
+reserve
+(29.5)
+Debt Equity Foreign
+instrument instrument currency
+through through translation
+OCI
+OCI
+reserve
+Legal General Retained
+reserve reserve earnings
+reserve
+Capital
+redemption
+Amalgamation
+Debenture
+redemption
+Capital Securities
+reserve premium
+Equity
+share
+capital
+Particulars
+Attributable
+Other comprehensive income (OCI)
+Reserves and surplus
+Other equity
+reserve
+* in Million
+Exchange difference arising on
+383,141.1 38,841.6 421,982.7
+26,654.2 5,424.4 32,078.6
+14,816.6 1,346.6 16,163.2
+(15.7)
+82.7
+* 150.2
+Financial Statements
+overseas subsidiary
+and loss as per the local law of an
+consolidated statement of profit
+Transfer from surplus in
+AS 115
+Adjustment on account of Ind
+company
+shares by overseas subsidiaries
+Buy-back purchase of equity
+14,816.6
+redemption reserve
+Transfer from debenture
+note 75)
+3,174.2
+On acquisition of subsidiary (Refer
+Dividend distribution tax
+Payment of dividend
+the year
+Total comprehensive income for
+the year, net of tax
+Other comprehensive income for
+operations, net of tax
+net investment in foreign
+translation of foreign operations/
+(1,250.0)
+for the year ended March 31, 2020
+Consolidated Statement of Changes in Equity
+<184
+16,622.8
+22,363.0
+(3,049.8)
+(6,259.0)
+Basic (in)
+Earnings per equity share (face value per equity share - *1)
+- Non-controlling interests
+- Owners of the Company
+Total comprehensive income for the year attributable to:
+- Non-controlling interests
+- Owners of the Company
+Other comprehensive income for the year attributable to:
+(XVI)Total comprehensive income for the year (XII+XV)
+21,208.3
+(XV) Total other comprehensive income (A + B)
+19,213.0
+▬▬▬30,049.5 _
+(759.5)
+Income tax on above
+19,972.5
+30,049.5
+(c) Exchange differences in translating the financial statements of foreign
+operations
+358.4
+(808.1)
+(180.6)
+376.3
+Income tax on above
+539.0
+(d) Exchange differences on translation of net investment in foreign operations
+Total (B)
+16,799.9
+62,927.9
+48,878.5
+183 >>
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+(DIN: 00005588)
+Managing Director
+DILIP S. SHANGHVI
+SUNIL R. AJMERA
+Company Secretary
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Pune, May 27, 2020
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For SRBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the consolidated financial statements
+11.1
+11.1
+15.7
+15.7
+Diluted (in *)
+51
+6,824.4
+6,859.5
+42,054.1
+56,068.4
+1,400.0
+2,789.2
+15,399.9
+18,419.1
+53.4
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+18.2
+(b) Effective portion of gain/(loss) on designated portion of hedging instruments in
+a cash flow hedge
+(d) Current tax liabilities (Net)
+Total current liabilities
+Total liabilities
+TOTAL EQUITY AND LIABILITIES
+The accompanying notes are an integral part of the consolidated financial statements
+As per our report of even date
+For S RBC & CO LLP
+(c) Provisions
+Chartered Accountants
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Pune, May 27, 2020
+22282
+20,289.2
+15,226.1
+ICAI Firm Registration No. : 324982E/E300003
+424.1
+5,110.0
+(b) Other current liabilities
+(ii) Trade payables
+Total equity
+491,246.9
+447,226.0
+Liabilities
+(1) Non-current liabilities
+(a) Financial liabilities
+(i) Borrowings
+(iii) Other financial liabilities
+(ii) Other financial liabilities
+(c) Deferred tax liabilities (Net)
+(d) Other non-current liabilities
+Total non-current liabilities
+(2) Current liabilities
+(a) Financial liabilities
+(i)
+Borrowings
+(b) Provisions
+33,135.4
+30.6
+50
+Sun Pharmaceutical Industries Limited
+For and on behalf of the Board of Directors of
+646,938.1
+199,712.1
+191,277.7
+682,524.6
+173,396.2
+157,064.3
+SUNIL R. AJMERA
+Company Secretary
+1,269.4
+29,323.3
+39,701.8
+7,344.0
+6,462.9
+10,273.2
+12,448.2
+26
+2,020.3
+4,303.9
+DILIP S. SHANGHVI
+(DIN: 00005588)
+581.4
+1,042.8
+24
+7,808.7
+5,712.5
+34,213.4
+26,315.9
+Managing Director
+28
+2 2222
+25
+55,493.8
+83,707.6
+40,937.3
+41,478.7
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+29
+38,602.4
+23
+414,090.6
+11
+78,749.9
+78,859.8
+12
+48,973.6
+39,507.2
+13
+31,752.9
+94,212.4
+(iii) Cash and cash equivalents
+14
+56,766.1
+70,623.0
+(iv) Bank balances other than (iii) above
+15
+2,133.0
+88,842.0
+(v) Loans
+25,548.7
+9
+71
+336,246.2
+365,983.0
+5,083.5
+6,200.9
+10
+(ii) Trade receivables
+(j) Income tax assets (Net)
+Investments
+(b) Financial assets
+(a) Inventories
+(2) Current assets
+Total non-current assets
+(k) Other non-current assets
+32,660.9
+33,842.5
+(i)
+16
+8,109.4
+1,483.8
+50
+Annual Report 2019-20
+Notes
+As at
+March 31, 2020
+* in Million
+As at
+March 31, 2019
+Equity
+(a) Equity share capital
+Particulars
+19
+2,399.3
+(b) Other equity
+20
+450,245.2
+411,691.3
+Equity attributable to the equity shareholders of the Company
+Non-controlling interests
+452,644.5
+2,399.3
+as at March 31, 2020
+EQUITY AND LIABILITIES
+The Transformation Journey
+3,093.5
+(vi) Other financial assets
+17
+9,293.4
+Consolidated Balance Sheet
+(c) Other current assets
+18
+18,953.0
+7,177.0
+Total current assets
+316,541.6
+310,691.9
+TOTAL ASSETS
+682,524.6
+646,938.1
+180
+20,456.4
+475-505
+1,250
+2-5%
+85-95
+4.8%
+71
+5-8%
+7.0%
+Rest of the world
+2-5%
+Pharmerging
+4.7%
+Global
+CY21
+CY22
+Forecast
+CY23
+CY24
+Annual Report 2019-20
+10%
+9%
+2%
+ខ្មុំ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖
+8%
+⚫. Spending
+→ Growth (%)
+2019
+2014-2019
+2024
+2019-2024
+(In US$ Bn)
+CAGR
+(In US$ Bn)
+CAGR
+822
+3.8%
+985-1,015
+358
+1,570-1,600
+Developed
+475-505
+9%
+11%
+11%
+11%
+7%
+7%
+985-1,015
+71%
+27%
+38%
+38%
+12%
+12%
+23%
+21%
+Developed
+28%
+73%
+Global
+Rest of the world
+Table 2 Global pharmaceutical market 2024 - Share by product type¹
+Spending
+Original brands
+Non-original
+brands
+Unbranded
+OTC, vaccines and
+other products
+Total
+(In US$ Bn)
+2019
+2024
+2019
+2024
+2019
+2024
+2019
+2024
+Pharmerging
+3-6%
+Regions
+Senior Vice-President - Corporate Relations
+and CSR, India Regulatory Affairs
+И
+Dr. Azadar H. Khan
+56%
+Aalok Shanghvi
+Senior Vice-President -
+Global BD, Emerging Markets and Global R&D
+C. S. Muralidharan
+Chief Financial Officer
+Leadership Team
+Dr. Sapna Purohit
+Senior Vice-President,
+Head of Human Resources
+Anilkumar Jain
+CEO API Business
+Senior Vice-President,
+Sun Pharmaceutical Global Operations
+S. Kalyanasundaram
+Whole-time Director and
+Director Corporate Development
+<10
+The Transformation Journey
+Annual Report 2019-20
+Davinder Singh
+Dr. Pradeep Sanghvi
+Executive Vice-President,
+Global Head - Oral Solids
+CEO North America
+Abhay Gandhi
+(In US$ Bn)
+The Transformation Journey
+Board of Directors
+Israel Makov,
+Chairman
+Dilip S. Shanghvi,
+Managing Director
+Sailesh T. Desai,
+Whole-time Director
+Annual Report 2019-20
+Sudhir V. Valia,
+Non-executive and
+Non-Independent Director
+Kalyanasundaram Subramanian,
+Whole-time Director
+Vivek Chaand Sehgal,
+Non-executive and
+Independent Director
+Rekha Sethi,
+Non-executive and
+Independent Director
+Gautam Doshi,
+Non-executive and
+Independent Director
+9 >>
+Corporate Overview
+Leadership Team
+Kirti Ganorkar
+Table 1 Global pharmaceutical market growth¹
+Hellen de Kloet
+CEO India Business
+268 NOTICE
+The Transformation Journey
+Management Discussion and Analysis
+The views expressed in this analysis and the
+estimates mentioned were prepared prior to
+the onset of the COVID-19 pandemic and,
+hence are subject to change, depending on the
+evolving situation related to the pandemic.
+Global Pharmaceutical Industry¹
+The global pharmaceutical market,
+estimated at US$1.2 Trillion in 2019, is
+expected to expand at a Compounded
+Annual Growth Rate (CAGR) of 3-6%
+to US$1.5-1.6 Trillion by 2024. Much of
+this is likely to be driven by the volume
+growth in pharmerging markets and the
+launch of high-end specialty innovative
+products in developed markets. However,
+overall tightening in pricing and patent
+expiry in developed markets could
+offset this growth.
+Spending US$ Bn
+170 Consolidated
+Chart 1 Global pharmaceutical market¹
+1,400
+1,200
+1,000
+800
+600
+400
+200
+1,600
+Standalone
+97
+FINANCIAL STATEMENTS
+Business Head - Western Europe,
+Australia and New Zealand
+Senior Vice-President, Head -
+Global Quality and Compliance
+Uday Baldota
+CEO - Taro Pharmaceutical
+Industries Ltd.
+Sreenivas Rao
+Senior Vice-President,
+Head - Global Supply Chain
+Atanu Roy
+Senior Vice-President,
+Chief Information Officer
+11 »>>>
+12-96
+STATUTORY REPORTS
+13 Management
+Discussion and Analysis
+34 Board's Report
+67 Corporate Governance
+85 Business Responsibility Report
+97-267
+Jila Breeze
+56%
+The growing demand of specialty medicines has been a
+steady growth driver in global pharmaceutical spending
+during the last decade, especially in the developed markets.
+Specialty medicines are used in the treatment of chronic,
+complex or rare diseases, which require advanced research
+and innovation (biologic drugs for chronic ailments,
+immunology drugs, orphan disease treatments, gene and
+cell therapy, among others). These products have made
+significant difference in patient outcomes.
+24%
+27
+IZ
+2009⚫
+2024
+2019
+31-35
+2019 •
+2019-2024
+8-11%
+22
+2014-2019
+CAGR
+9.5%
+Chart 4 India pharmaceutical spending and growth
+(In US$ Bn)
+CAGR
+2014
+2024⚫
+The Transformation Journey
+Increasing access to modern
+medicines
+Changing lifestyles and consumption patterns leading to
+increasing incidence of chronic ailments
+Improved affordability in
+metropolitan and Tier-1 cities
+Growth
+enablers
+among the masses
+2
+6
+Rising healthcare awareness
+1
+insurer initiatives
+5
+Higher uptake of innovative
+medicines
+boosted by government and private
+Greater demand for insurance coverage,
+India Pharmaceutical Market - Growth enablers³, 4
+India is uniquely positioned as a crucial supplier of
+pharmaceuticals by way of chemistry expertise, lower
+personnel costs and the ability to manufacture quality
+medicines in compliance with global regulatory
+standards. It will continue to be an important player
+in the global generics market.
+The Indian pharmaceutical industry is one of the
+fastest growing, globally, and the largest exporter of
+generic drugs by volume. The domestic formulations
+market in India has recorded ~9.5% CAGR in 2014-19
+to reach US$22 Billion and is expected to grow at
+8-11% CAGR to US$31-35 Billion by 2024.
+5-8%
+475-505
+90-120
+9.4%
+71
+5-8%
+CAGR
+2019-2024
+(In US$ Bn)
+165-195
+6.7%
+142
+CAGR
+2024
+2014-2019
+2019
+India
+7-10%
+<18
+32
+45-49
+7.0%
+358
+5-8%
+195-225
+6.2%
+145
+8-11%
+23-27
+8.4%
+16
+8-11%
+31-35
+9.5%
+22
+6-9%
+9.9%
+Pharmerging markets
+Employee
+nationalities
+Of annual revenues
+invested in Research
+and Development
+2009 •
+11
+2014 •
+12
+2019 •
+14
+44
+2024 •
+2009 •
+19
+2014 •
+24
+2019 •
+17 >>>
+15
+2024⚫
+2019 •
+32
+Given the higher pricing, majority of these products'
+uptake is likely to be in markets with robust reimbursement
+systems. In ten years, from 2009 to 2019, the contribution
+of specialty products to the global pharmaceutical
+spending rose from 21% to 36%. Additionally, in the
+developed markets, contribution increased from 23% to
+44%, while in the pharmerging markets, it grew from 11%
+to 14% by 2019. The uptake of these products is slower
+in pharmerging markets due to absence of or inadequate
+prescription insurance coverage for the masses.
+The growth trend is expected to continue as more specialty
+products are developed and commercialised for unmet
+medical needs. They are likely to account for 40% of
+global pharmaceutical spending by 2024, with the fastest
+growth expected to be in the developed markets, where
+contribution of specialty products is likely to cross 50%
+by 2024. Oncology, autoimmune diseases and immunology
+are the main segments in the space, and will likely remain
+the key growth drivers in the 2019-2024 period.
+Chart 5 Specialty medicines - Contribution to overall pharmaceutical spending¹
+(%)
+Global
+Developed Markets
+Pharmerging Markets
+Rest of World
+36
+40
+2009 •
+23
+2014 •
+32
+2024⚫
+32
+36
+Consistent economic development and
+Pharma Company
+in India
+Evolving Universe of Sun Pharma
+Sun Pharmaceutical Industries Ltd., together with all
+its subsidiaries (Sun Pharma), is a globally acclaimed
+specialty generics pharmaceutical company. The Company,
+along with its subsidiaries and associates, continues to
+strengthen its market position despite macro-economic
+headwinds and industry challenges.
+A vertically integrated business and a team of highly
+skilled employees enable it to deliver quality products
+at affordable prices, and be trusted by customers and
+patients in over 100 countries (comprising branded
+and generic markets). The Company has capabilities to
+manufacture a variety of dosage forms, such as injectables,
+sprays, ointments, creams, liquids, drug delivery systems,
+tablets and capsules.
+The Company's growing presence is supported by
+manufacturing facilities across 6 continents. The facilities
+are approved by multiple global regulatory authorities
+and run by a multi-cultural workforce comprising 50+
+nationalities. The Company fosters excellence through
+innovation, supported by strong Research & Development
+(R&D) capabilities across units, with ~6% of annual revenue
+being invested in R&D.
+Sun Pharma is focused on improving efficiencies, cash
+flows and cost structure to ensure profitable and
+sustainable growth coupled with reasonable returns. At the
+same time, it continues its unwavering efforts on building
+its global specialty business.
+9th
+Largest generic pharma
+Company in the US
+43
+Manufacturing
+sites globally
+100+
+Countries market
+footprint
+36,000+
+Global employee
+base
+6.1%
+No.1
+50+
+Among global
+specialty generic
+companies
+Sun Pharma's Global Positioning
+rapid urbanisation
+Annual Report 2019-20
+Statutory Reports
+Management Discussion and Analysis
+Active Pharmaceutical Ingredients (API)5
+The global API market is projected to reach approximately
+US$232 Billion by 2024, growing at a CAGR of about 6%.
+Some key factors driving this is the spike in infectious
+diseases and chronic disorders. The demand is being driven
+by consumption for manufacturing formulations in the
+anti-infectives, diabetes, cardiovascular, analgesics and
+pain management segments. Another factor is the rising
+use of APIs in novel formulations to pursue niche therapies
+like immunology, oncology, biologics and orphan drugs.
+Consumer healthcare6
+Consumer health products do not require prescription
+from healthcare professionals and can be purchased Over
+The Counter (OTC) from a pharmacy store. The global OTC
+consumer health products market size was approximately
+at US$141.5 Billion for 2019, recording a growth of 3.9%
+over 2018. It is projected to grow at 4.3% CAGR to reach
+~US$175 Billion by 2024. Rising disposable income of
+consumers and spending on healthcare and wellness
+products are the major factors, likely to foster global
+market growth of OTC consumer health products.
+Today's informed patients believe in taking better
+healthcare decisions and are engaging in effective
+health management through digital tools. Leveraging
+uninterrupted access to information, the consumer is
+wielding growing power, leading to creation of new market
+segments and new models of healthcare.
+Key trends include:
+• Increasing prescription to OTC switches
+• Growing importance of dietary supplements
+.
+Opportunity for omnichannel distribution - large format
+stores, shop-in-shop pharmacies and digital modes
+• Increasing uptake of value-added products for
+well-informed consumers
+4th
+Tier 3
+India
+Russia
+Brazil
+2019
+(In US$ Bn)
+Table 3 Developed markets - Pharmaceutical spending & growth¹
+Pharmaceutical spending in the developed markets grew at ~4% CAGR between 2014-19, and is estimated to grow at
+about 2-5% CAGR to reach US$985-1015 Billion by 2024. These markets accounted for ~66% of global pharmaceutical
+spending in 2019, and are expected to account for ~63% of global spending by 2024.
+Developed Markets¹
+Annual Report 2019-20
+2014-2019
+The Transformation Journey
+To cope with rising
+demand, driven largely
+by an expanding
+geriatric population,
+governments of most
+emerging economies
+will continue to
+seek expansion
+of their national
+health insurance
+schemes, boosting
+further spending on
+healthcare.
+Sustained economic
+growth in the
+long-term will remain
+a key catalyst for
+global pharmaceutical
+growth. However,
+there may be
+some near-term
+uncertainty due to the
+COVID-19 global
+pandemic.
+Launch of new
+innovative products
+will be a key driver of
+growth in developed
+pharmaceutical
+markets. Immunology
+drugs, biologics,
+oncology products,
+orphan drugs and cell
+and gene therapies
+will account for an
+increasing proportion
+of new launches in
+developed markets.
+cancer and diabetes.
+diseases,
+of NCDs, especially
+cardiovascular
+<<14
+2024
+2019-2024
+Region/Country
+4.9%
+52
+Germany
+3-6%
+210-240
+4.0%
+174
+WE5
+3-6%
+605-635
+4.3%
+510
+USA
+CAGR
+CAGR
+control and prevention
+growth through
+focused on overall
+Rising per capita
+income and changing
+lifestyles and food
+preferences, among
+other demographic
+and epidemiological
+trends, are leading
+to a rapid rise in
+the incidence of
+Non-Communicable
+Diseases (NCDs) in
+pharmerging markets.
+Pharmaceutical
+spending in these
+markets will be
+Outlook, implications and emerging trends¹, 2
+1,570-1,600
+11%
+11%
+11%
+11%
+Specialty Medicines¹
+18%
+58%
+60%
+85-95
+12%
+12%
+8%
+8%
+The US and pharmerging markets will remain key
+constituents of the global pharmaceutical industry -
+the former owing to size, and latter due to their growth
+prospects. Pharmaceutical spending in the US is estimated
+to grow at 3-6% CAGR between 2019 and 2024, to
+reach US$605-635 Billion by 2024, while the spending in
+pharmerging markets, including China, is likely to grow at
+5-8% CAGR to US$475-505 Billion by 2024. These two
+regions will be key contributors to global pharmaceutical
+growth.
+65-75
+• Pharmaceutical spending in the top five western
+European markets (WE5) is likely to grow at
+3-6% CAGR between 2019 and 2024 to reach
+US$210-240 Billion by 2024.
+13 >>
+Access
+Macro-economics
+Innovation
+Demographics
+Growth Enablers¹
+• In developed markets, there will be newer treatment
+options available for rare diseases and cancer, though
+they may come at a higher cost to patients in some
+countries. In pharmerging markets, wider access to
+treatment options and increased spending on medicines
+will have a positive impact on health outcomes.
+• Payors (reimbursement companies) are likely to keep
+working towards reducing costs. While initiatives to
+improve access to high-priced innovative products are
+being implemented, cost containment remains high
+on payors' agendas in the developed markets. This
+will contribute to a gradual moderation in the overall
+growth of pharmaceutical companies, especially in
+developed markets.
+• One of the most dependable sources to generate key
+patient insights will be genomic data, as it facilitates
+an understanding of the genetic basis of diseases and
+treating genetically driven diseases with targeted
+gene-based therapies.
+• Digital technologies are being leveraged significantly for
+patient-to-doctor connect currently since a face-to-face
+consultation may not be possible due to COVID-19. It
+remains to be seen if this trend will continue in the post
+COVID-19 period also.
+• Digital technologies will be the most transformative
+force for healthcare. The ongoing uptake for artificial
+intelligence and machine learning will carry important
+implications within data science for optimisation of
+decision-making, ethical handling of patient privacy,
+and proper use and management of extensive and
+complex data sets.
+• Global R&D spend is estimated to grow at a CAGR of
+3% by 2024, lower than that of 4.2% between 2010 and
+2018, partially driven by companies' focus on smaller
+indications, with lower clinical development costs.
+• Innovator pharmaceutical companies will continue to
+explore new treatment approaches and technologies, as
+also breakthrough products to address unmet patient
+needs. Their key research focus will be immunology,
+oncology, biologics and cell and gene therapies.
+Management Discussion and Analysis
+Statutory Reports
+Growth Rate Constant US$
+• China's US$142 Billion pharmaceutical market is
+expected to grow at 5-8% CAGR to US$165-195 Billion
+by 2024, while Japan's pharmaceutical spending
+growth is likely to remain range-bound at
+US$88-98 Billion by 2024.
+4-7%
+France
+35
+CAGR
+3-6%
+2014-2019
+CAGR
+4.3%
+Chart 2 US pharmaceutical spending and growth¹
+Pharmaceutical spending in the top five Western
+European (WE5) markets is projected to grow at
+about 3-6% CAGR to US$210-240 Billion by 2024.
+Launch of new-age specialty products will drive this
+growth. Government-led price control initiatives to
+improve patient access is likely to act as a
+counter-balancing force to this growth.
+Western
+Europe Top 5
+Markets (WE5)
+USA continues to be the largest pharmaceutical
+market, accounting for ~41% of global
+pharmaceutical spending. It recorded ~4% CAGR for
+2014-19 and is expected to grow at 3-6% CAGR to
+US$605-635 Billion by 2024. The growth is likely to
+be driven principally by the development and launch
+of innovative specialty drugs, but will be partly
+tempered down by expiring patents of existing drugs
+and cost reduction initiatives by payors.
+USA
+2-5%
+985-1,015
+3.8%
+823
+3-6%
+2019-2024
+13-17
+4.0%
+2014-2019
+Tier 2
+China
+Region/Country
+Table 4 Pharmerging Markets - Pharmaceutical spending and growth¹
+Growth in pharmerging markets will be powered by
+higher volumes for branded and pure generic medicines
+led by increasing access among the populace. Some latest
+generation innovative medicines are likely to be launched
+in these markets, but given the high price of such products,
+the uptake may be limited.
+Pharmaceutical spending in pharmerging markets grew
+at ~7% CAGR during 2014-19 to US$358 Billion. These
+markets comprised ~28% of global spending in 2019 and
+are expected to account for 30-31% of spending by 2024.
+Pharmerging markets are likely to continue registering
+faster growth than developed markets, with a 5-8% CAGR
+through 2024, although lower than the 7% CAGR recorded
+during 2014-19.
+Pharmerging Markets¹
+The Japanese pharmaceutical market is expected
+to record flat growth between 2019-24 to about
+US$88 Billion. Favourable government policies
+are resulting in rising generics use, coupled with
+periodic downward price revisions for pharmaceutical
+products. This will facilitate savings in healthcare
+spending, tempering down industry growth despite
+product innovations.
+Japan
+Management Discussion and Analysis
+Statutory Reports
+<16
+15 >>
+CAGR
+2019-2024
+3-6%
+CAGR
+24%
+3.5%
+5-8%
+Japan
+Spain
+4-7%
+37-41
+4.5%
+29
+UK
+3-6%
+41-45
+5.1%
+34
+Italy
+0-3%
+38-42
+1.6%
+25
+12
+4.0%
+3-6%
+21-25
+7.3%
+16
+4-7%
+26-30
+4.6%
+23
+Developed markets
+Australia
+South Korea
+Canada
+(3)-0%
+88-98
+(0.2)%
+87
+30-34
+20%
+(In US$ Bn)
+Chart 3 WE5 pharmaceutical spending and growth¹
+For purposes of subsequent measurement,
+financial assets are classified in four categories:
+Foreign operations
+e.
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+Non-monetary items that are measured in
+terms of historical cost in foreign currency are
+measured using the exchange rates at the date of
+initial transaction.
+• exchange differences relating to the
+translation of the results and the net assets
+of the Company's foreign operations from
+their functional currencies to the Company's
+presentation currency (i.e ) are recognised
+directly in the other comprehensive income
+and accumulated in foreign currency
+translation reserve. Exchange difference
+in the foreign currency translation reserve
+are reclassified to statement of profit
+or loss account on the disposal of the
+foreign operation.
+• exchange differences on transactions entered
+into in order to hedge certain foreign currency
+risks (see note 2.2.j below for hedging
+accounting policies).
+• exchange differences on foreign currency
+borrowings relating to assets under
+construction for future productive use, which
+are included in the cost of those assets when
+they are regarded as an adjustment to interest
+costs on those foreign currency borrowings
+(see note 2.2.s).
+In preparing the financial statements of
+each individual Group entity, transactions in
+currencies other than the entity's functional
+currency (foreign currencies) are translated at
+exchange rates on the date of the transactions.
+Monetary assets and liabilities denominated
+in foreign currencies at the reporting date are
+translated into the functional currency at the
+exchange rate on that date. Exchange differences
+arising on the settlement of monetary items or
+on translating monetary items at rates different
+from those at which they were translated on
+initial recognition during the period or in previous
+period are recognised in profit or loss in the
+period in which they arise except for:
+Foreign currency transactions
+Foreign currency
+about facts and circumstances that existed at
+the acquisition date that, if known, would have
+affected the amounts recognised at that date.
+d.
+If the initial accounting for a business
+combination is incomplete by the end of the
+reporting period in which the combination
+occurs, the Group reports provisional amounts
+for the items for which the accounting is
+incomplete. Those provisional amounts are
+adjusted during the measurement period (see
+above), or additional assets or liabilities are
+recognised, to reflect new information obtained
+If the business combination is achieved in
+stages, any previously held equity interest is
+re-measured at its acquisition date fair value and
+any resulting gain or loss is recognised in profit or
+loss or OCI, as appropriate.
+A contingent liability of the acquiree is assumed
+in a business combination only if such a liability
+represents a present obligation and arises from
+a past event and its fair value can be measured
+reliably. On an acquisition-by-acquisition basis,
+the Group recognises any non-controlling
+interest in the acquiree either at fair value or
+at the non-controlling interest's proportionate
+share of the acquiree's identifiable net assets.
+Transaction costs that the Group incurs in
+connection with a business combination, such
+as finder's fees, legal fees, due diligence fees
+and other professional and consulting fees, are
+expensed as incurred.
+the acquiree, and equity interests issued by the
+Group. Consideration transferred also includes
+the fair value of any contingent consideration.
+Changes in the fair value of the contingent
+consideration that qualify as measurement period
+adjustments are adjusted retrospectively, with
+corresponding adjustments against goodwill
+or capital reserve, as the case maybe. The
+subsequent accounting for changes in the fair
+value of the contingent consideration that do
+not qualify as measurement period adjustments
+depends on how the contingent consideration
+is classified. Contingent consideration that
+is classified as equity is not remeasured at
+subsequent reporting dates and its subsequent
+settlement is accounted for within equity.
+Contingent consideration that is classified
+as an asset or a liability is remeasured at fair
+value at subsequent reporting dates with the
+corresponding gain or loss being recognised in
+profit or loss. Consideration transferred does not
+include amounts related to settlement of pre-
+existing relationships.
+<192
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+Financial Statements
+191 >>>
+The Group uses the acquisition method of
+accounting to account for business combinations
+that occurred on or after April 01, 2015. The
+acquisition date is generally the date on which
+control is transferred to the acquirer. Judgment
+is applied in determining the acquisition date
+and determining whether control is transferred
+from one party to another. Control exists when
+the Group is exposed to, or has rights to, variable
+returns from its involvement with the entity and
+has the ability to affect those returns through
+power over the entity. In assessing control,
+potential voting rights are considered only if
+the rights are substantive. The Group measures
+goodwill as of the applicable acquisition date at
+the fair value of the consideration transferred,
+including the recognised amount of any non-
+controlling interest in the acquiree and the
+fair value of the acquirer's previously held
+equity interest in the acquiree (if any), less
+the net recognised amount of the identifiable
+assets acquired and liabilities assumed. When
+the fair value of the net identifiable assets
+acquired and liabilities assumed exceeds the
+consideration transferred, a bargain purchase
+gain is recognised immediately in the OCI and
+accumulates the same in equity as Capital
+reserve where there exists clear evidence of the
+underlying reasons for classifying the business
+combination as a bargain purchase else the
+gain is directly recognised in equity as Capital
+reserve. Consideration transferred includes the
+fair values of the assets transferred, liabilities
+incurred by the Group to the previous owners of
+For the purposes of presenting these
+consolidated financial statements, the assets
+and liabilities of Group's foreign operations, are
+translated to the Indian Rupees at exchange rates
+at the end of each reporting period. The income
+and expenses of such foreign operations are
+translated at the average exchange rates for the
+period. Resulting foreign currency differences
+are recognised in other comprehensive income
+and presented within equity as part of Foreign
+Currency Translation Reserve (and attributed to
+non-controlling interests as appropriate). When
+a foreign operation is disposed off, the relevant
+amount in the Foreign Currency Translation
+Reserve is reclassified to profit or loss.
+Business combinations
+In addition, in relation to a partial disposal of
+a subsidiary that includes a foreign operation
+that does not result in the Group losing control
+over the subsidiary, the proportionate share
+of accumulated exchange differences are
+re-attributed to non-controlling interests and
+are not recognised in profit or loss. For all
+other partial disposals (i.e. partial disposals of
+associates or joint arrangements that do not
+result in the Group losing significant influence
+or joint control), the proportionate share of the
+accumulated exchange differences is reclassified
+to profit or loss.
+Segment reporting
+* Includes assets given under operating lease
+Vehicles
+Furniture and fixtures
+Office equipment
+Plant and equipment*
+buildings*
+5-125
+No. of years
+Buildings including factory
+Asset Category
+The estimated useful lives are as follows:
+194
+g.
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+Financial Statements
+193 »
+Depreciation is recognised on the cost of assets
+(other than freehold land and Capital work-in-
+progress) less their residual values on straight-
+line method over their useful lives. Leasehold
+improvements are depreciated over period of the
+lease agreement or the useful life, whichever is
+shorter. Depreciation methods, useful lives and
+residual values are reviewed at the end of each
+reporting period, with the effect of any changes
+in estimate accounted for on a prospective basis.
+Items of property, plant and equipment acquired
+through exchange of non-monetary assets are
+measured at fair value, unless the exchange
+transaction lacks commercial substance or the
+fair value of either the asset received or asset
+given up is not reliably measurable, in which case
+the acquired asset is measured at the carrying
+amount of the asset given up.
+An item of property, plant and equipment is
+derecognised upon disposal or when no future
+economic benefits are expected to arise from
+the continued use of the asset. Any gain or loss
+arising on the disposal or retirement of an item
+of property, plant and equipment is determined
+as the difference between the sales proceeds
+and the carrying amount of property, plant and
+equipment and is recognised in profit or loss.
+Assets in the course of construction for
+production, supply or administrative purposes
+are carried at cost, less any recognised
+impairment loss. Cost includes purchase price,
+borrowing costs if capitalisation criteria are met
+and directly attributable cost of bringing the
+asset to its working condition for the intended
+use. Subsequent expenditures are capitalised
+only when they increase the future economic
+benefits embodied in the specific asset to
+which they relate. Such assets are classified to
+the appropriate categories of property, plant
+and equipment when completed and ready for
+intended use. Depreciation of these assets, on
+the same basis as other assets, commences when
+the assets are ready for their intended use. When
+parts of an item of property, plant and equipment
+have different useful lives, they are accounted
+for as separate items (major components) of
+property, plant and equipment.
+impairment losses, if any. Freehold land is
+not depreciated.
+Items of property, plant and equipment are
+stated in consolidated balance sheet at cost
+less accumulated depreciation and accumulated
+Property, plant and equipment
+f.
+Operating segments are reported in a manner
+consistent with the internal reporting provided
+to the chief operating decision maker. The chief
+operating decision maker of the Company is
+responsible for allocating resources and assessing
+performance of the operating segments.
+Goodwill and fair value adjustments to
+identifiable assets acquired and liabilities
+assumed through acquisition of a foreign
+operation are treated as assets and liabilities
+of the foreign operation and translated at the
+rate of exchange prevailing at the end of each
+reporting period. Exchange differences arising
+are recognised in OCI.
+The operating cycle is the time between the
+acquisition of assets for processing and their
+realisation in cash and cash equivalents. The
+Group has identified twelve months as its
+operating cycle.
+Deferred tax assets and liabilities are classified as
+non-current assets and liabilities.
+The Group classifies all other liabilities
+as non-current.
+<190
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+Financial Statements
+189 >>
+The consolidated financial statements comprise
+the financial statements of the Parent Company
+and its subsidiaries as disclosed in Note 38.
+Control exists when the parent has power over
+the entity, is exposed, or has rights, to variable
+returns from its involvement with the entity
+and has the ability to affect those returns
+by using its power over the entity. Power is
+Basis of consolidation
+a.
+The Group has consistently applied the following
+accounting policies to all periods presented in these
+consolidated financial statements expect for the
+matter disclosed in Note 54 of the consolidated
+financial statements.
+• Level 3 inputs are unobservable inputs for the
+asset or liability.
+• Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the
+asset or liability, either directly or indirectly; and
+• Level 1 inputs are quoted prices (unadjusted) in
+active markets for identical assets or liabilities that
+the entity can access at the measurement date;
+In addition, for financial reporting purposes, fair
+value measurements are categorised into Level
+1, 2 or 3 based on the degree to which the inputs
+to the fair value measurements are observable
+and the significance of the inputs to the fair
+value measurement in its entirety, which are
+described as follows:
+Fair value is the price that would be received to sell
+an asset or paid to transfer a liability in an orderly
+transaction between market participants at the
+measurement date, regardless of whether that price
+is directly observable or estimated using another
+valuation technique. In estimating the fair value of
+an asset or a liability, the Group takes into account
+the characteristics of the asset or liability if market
+participants would take those characteristics into
+account when pricing the asset or liability at the
+measurement date. Fair value for measurement and/
+or disclosure purposes in these consolidated financial
+statements is determined on such a basis, except for
+share-based payment transactions that are within
+the scope of Ind AS 102, leasing transactions that are
+within the scope of Ind AS 116 and measurements
+that have some similarities to fair value but are not fair
+value, such as net realisable value in Ind AS 2 or value
+in use in Ind AS 36.
+The consolidated financial statements are presented
+in Indian Rupees (*) and all values are rounded to the
+nearest Million (*000,000) upto one decimal, except
+when otherwise indicated.
+Historical cost is generally based on the fair
+value of the consideration given in exchange for
+goods and services.
+The consolidated financial statements have been
+prepared on the historical cost basis, except for: (i)
+certain financial instruments that are measured at
+fair values at the end of each reporting period; (ii)
+non-current assets classified as held for sale which
+are measured at the lower of their carrying amount
+and fair value less costs to sell; (iii) derivative financial
+instruments and (iv) defined benefit plans - plan
+assets that are measured at fair values at the end of
+each reporting period, as explained in the accounting
+policies below
+2.2 Basis of preparation and presentation
+The Group has prepared its consolidated financial
+statements for the year ended March 31, 2020 in
+accordance with Indian Accounting Standards (Ind
+AS) notified under the Companies (Indian Accounting
+Standards) Rules, 2015 (as amended) together with
+the comparative period data as at and for the year
+ended March 31, 2019.
+NOTE : 2 SIGNIFICANT ACCOUNTING POLICIES
+2.1 Statement of compliance
+The consolidated financial statements were
+authorised for issue in accordance with a resolution of
+the directors on May 27, 2020.
+Sun Pharmaceutical Industries Limited ("the Parent
+Company") is a public limited company incorporated
+and domiciled in India, having it's registered office at
+Vadodara, Gujarat, India and is listed on the Bombay
+Stock Exchange Limited and National Stock Exchange
+of India Limited. The Company is in the business of
+manufacturing, developing and marketing a wide
+range of branded and generic formulations and
+Active Pharmaceutical Ingredients (APIs). The Parent
+Company and its subsidiaries (hereinafter referred
+to as "the Company" or "the Group") have various
+manufacturing locations spread across the world with
+trading and other incidental and related activities
+extending to the global markets.
+NOTE : 1 GENERAL INFORMATION
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+demonstrated through existing rights that give
+the ability to direct relevant activities, those
+which significantly affect the entity's returns.
+Subsidiaries are consolidated from the date
+control commences until the date control ceases.
+1-30
+Profit or loss and each component of other
+comprehensive income are attributed to the
+owners of the Company and to the non-
+controlling interests. Total comprehensive
+income of subsidiaries is attributed to the owners
+of the Company and to the non-controlling
+interests even if this results in the non-
+controlling interests having a deficit balance.
+Changes in the Group's ownership interests in existing
+subsidiaries
+• There is no unconditional right to defer the
+settlement of the liability for at least twelve
+months after the reporting period
+• It is due to be settled within twelve months
+after the reporting period, or
+C.
+• It is held primarily for the purpose of trading
+• It is expected to be settled in normal
+operating cycle
+All other assets are classified as non-current.
+A liability is current when:
+• Cash or cash equivalent unless restricted
+from being exchanged or used to settle a
+liability for at least twelve months after the
+reporting period
+• Expected to be realised within twelve months
+after the reporting period, or
+• Held primarily for the purpose of trading
+• Expected to be realised or intended to be sold
+or consumed in normal operating cycle
+The Group presents assets and liabilities in
+the balance sheet based on current / non-
+current classification. An asset is treated as
+current when it is:
+Current vs. Non-current
+When a Group entity transacts with an associate
+or a joint venture of the Group, profits and losses
+resulting from the transactions with the associate
+or joint venture are recognised in the Group's
+consolidated financial statements only to the
+extent of interest in the associate or joint venture
+that are not related to the Group.
+The difference between the carrying amount
+of the associate or joint venture at the date the
+equity method was discontinued, and the fair
+value of any retained interest and any proceeds
+from disposing of a part interest in the associate
+or joint venture is included in the determination
+of the gain or loss on disposal of the associate
+or joint venture. In addition, the Group accounts
+for all amounts previously recognised in other
+comprehensive income in relation to that
+associate or joint venture on the same basis
+as would be required if that associate or joint
+venture had directly disposed off the related
+assets or liabilities.
+when the investment ceases to be an associate
+or a joint venture, or when the investment is
+classified as held for sale.
+Annual Report 2019-20
+b.
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+An investment in an associate or a joint venture is
+accounted for using the equity method from the
+date on which the investee becomes an associate
+or a joint venture and discontinues from the date
+The results and assets and liabilities of associates
+or joint ventures are incorporated in these
+consolidated financial statements using the
+equity method of accounting, except when the
+investment, or a portion thereof, is classified as
+held for sale, in which case it is accounted for in
+accordance with Ind AS 105. Under the equity
+method, an investment in an associate or a joint
+venture is initially recognised in the consolidated
+balance sheet at cost and adjusted thereafter to
+recognise the Group's share of the profit or loss
+and other comprehensive income of the associate
+or joint venture. Distributions received from an
+associate or a joint venture reduce the carrying
+amount of the investment. The carrying value
+of the Group's investment includes goodwill
+identified on acquisition, net of any accumulated
+impairment losses. When the Group's share of
+losses of an associate or a joint venture exceeds
+its interest in that associate or joint venture, the
+carrying amount of that interest (including any
+long-term investments) is reduced to zero and
+the recognition of further losses is discontinued
+except to the extent that the Group has
+obligations or has made payments on behalf of
+the associate or joint venture.
+A joint venture is a joint arrangement whereby
+the parties that have joint control of the
+arrangement have rights to the net assets
+of the joint arrangement. Joint control is the
+contractually agreed sharing of control of an
+arrangement, which exists only when decisions
+about the relevant activities require unanimous
+consent of the parties sharing control.
+Investment in Associates and Joint Ventures
+Associates are those entities over which the
+Group has significant influence. Significant
+influence is the power to participate in the
+financial and operating policy decisions of the
+entities but is not control or joint control of
+those policies.
+in the former subsidiary at the date when control
+is lost is regarded as the fair value on initial
+recognition for subsequent accounting under Ind
+AS 109, or, when applicable, the cost on initial
+recognition of an investment in an associate or
+a joint venture.
+When the Group loses control of a subsidiary,
+a gain or loss is recognised in profit or loss and
+is calculated as the difference between (i) the
+aggregate of the fair value of the consideration
+received and the fair value of any retained
+interest and (ii) the previous carrying amount
+of the assets (including goodwill) and liabilities
+of the subsidiary and any non-controlling
+interests. All amounts previously recognised in
+other comprehensive income in relation to that
+subsidiary are accounted for as if the Group
+had directly disposed off the related assets or
+liabilities of the subsidiary (i.e. reclassified to
+profit or loss or transferred to another category
+of equity as specified/ permitted by applicable
+Ind AS). The fair value of any investment retained
+Changes in the Group's ownership interests in
+subsidiaries that do not result in the Group losing
+control over the subsidiaries are accounted for
+as equity transactions. The carrying amounts of
+the Group's interests and the non-controlling
+interests are adjusted to reflect the changes in
+their relative interests in the subsidiaries. Any
+difference between the amount by which the
+non-controlling interests are adjusted and the
+fair value of the consideration paid or received
+is recognised directly in equity and attributed to
+owners of the Company.
+The financial statements of the Group companies
+are consolidated on a line-by-line basis and intra-
+Group balances, transactions including unrealised
+gain / loss from such transactions and cash flows
+relating to transactions between members of the
+Group are eliminated upon consolidation. These
+financial statements are prepared by applying
+uniform accounting policies in use at the Group.
+The Transformation Journey
+2-15
+All financial liabilities are subsequently measured
+at amortised cost using the effective interest
+method or at FVTPL.
+An impairment loss is recognised in the profit
+or loss if the estimated recoverable amount
+of an asset or its cash generating unit is lower
+than its carrying amount. Impairment losses
+recognised in respect of cash-generating units
+are allocated first to reduce the carrying amount
+of any goodwill allocated to the units and then to
+reduce the carrying amount of the other assets in
+the unit on a pro-rata basis.
+Goodwill is tested for impairment annually.
+Goodwill acquired in a business combination, for
+the purpose of impairment testing is allocated
+to cash-generating units that are expected to
+benefit from the synergies of the combination.
+In respect of assets other than goodwill,
+impairment losses recognised in prior periods
+are assessed at each reporting date for any
+indications that the loss has decreased or no
+longer exists. An impairment loss is reversed
+if there has been a change in the estimates
+used to determine the recoverable amount. An
+impairment loss is reversed only to the extent
+that the asset's carrying amount does not exceed
+the carrying amount that would have been
+determined, net of depreciation or amortisation,
+if no impairment loss had been recognised.
+Impairment of non-financial assets other than
+goodwill
+i.
+Non-current assets held for sale
+The carrying amounts of the Group's non-
+financial assets are reviewed at each reporting
+date to determine whether there is any
+Non-current assets and disposal groups are
+classified as held for sale if their carrying amount
+195 »
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+<196
+will be recovered principally through a sale
+transaction rather than through continuing use.
+This condition is regarded as met only when
+the asset (or disposal group) is available for
+immediate sale in its present condition subject
+only to terms that are usual and customary for
+sales of such asset (or disposal group) and its
+sale is highly probable. Management must be
+committed to the sale, which should be expected
+to qualify for recognition as a completed sale
+within one year from the date of classification.
+When the Group is committed to a sale plan
+involving loss of control of a subsidiary, all of
+the assets and liabilities of that subsidiary are
+classified as held for sale when the criteria
+described above are met, regardless of whether
+the Group will retain a non-controlling interest in
+its former subsidiary after the sale.
+When the Group is committed to a sale plan
+involving disposal of an investment, or a portion
+of an investment, in an associate or joint venture,
+the investment or the portion of the investment
+that will be disposed off is classified as held for
+sale when the criteria described above are met,
+and the Group discontinues the use of the equity
+method in relation to the portion that is classified
+as held for sale.
+Any retained portion of an investment in an
+associate or a joint venture that has not been
+classified as held for sale continues to be
+accounted for using the equity method. The
+Group discontinues the use of the equity method
+at the time of disposal when the disposal results
+in the Group losing significant influence over the
+associate or joint venture.
+After the disposal takes place, the Group
+accounts for any retained interest in the
+associate or joint venture in accordance with Ind
+AS 109 unless the retained interest continues
+to be an associate or a joint venture, in which
+case the Group uses the equity method (see
+the accounting policy regarding investments in
+associates or joint ventures above).
+Non-current assets (and disposal groups)
+classified as held for sale are measured at the
+lower of their carrying amount and fair value less
+costs to sell. Non-current assets held for sale are
+not depreciated or amortised.
+j.
+Financial instruments
+A financial instrument is any contract that
+gives rise to a financial asset of one entity
+and a financial liability or equity instrument of
+another entity.
+Financial assets
+Initial recognition and measurement
+All financial assets are recognised initially at
+fair value plus, in the case of financial assets
+not recorded at fair value through profit or loss,
+transaction costs that are attributable to the
+acquisition of the financial asset. Purchases or
+sales of financial assets that require delivery
+of assets within a time frame established by
+regulation or convention in the market place
+(regular way trades) are recognised on the
+date the group commits to purchase or sell the
+financial assets.
+The recoverable amount of an asset or cash-
+generating unit (as defined below) is the greater
+of its value in use and its fair value less costs
+to sell. In assessing value in use, the estimated
+future cash flows are discounted to their present
+value using a pre-tax discount rate that reflects
+current market assessments of the time value
+of money and the risks specific to the asset or
+the cash-generating unit for which the estimates
+of future cash flows have not been adjusted.
+For the purpose of impairment testing, assets
+are grouped together into the smallest group
+of assets that generates cash inflows from
+continuing use that are largely independent of
+the cash inflows of other assets or groups of
+assets (the "cash-generating unit").
+Subsequent measurement
+indication of impairment. If any such indication
+exists, then the asset's recoverable amount is
+estimated in order to determine the extent of the
+impairment loss, if any.
+De-recognition of intangible assets
+Goodwill and Other Intangible assets
+Goodwill
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-
+controlling interest in the acquiree, over the fair
+value of the Group's share of identifiable net
+assets acquired. Goodwill is measured at cost
+less accumulated impairment losses. A cash-
+generating unit to which goodwill has been
+allocated is tested for impairment annually, or
+more frequently when there is an indication that
+the unit may be impaired. The goodwill acquired
+in a business combination is, for the purpose of
+impairment testing, allocated to cash-generating
+units that are expected to benefit from the
+synergies of the combination. Any impairment
+loss for goodwill is recognised directly in profit or
+loss. An impairment loss recognised for goodwill
+is not reversed in subsequent periods.
+On disposal of a cash-generating unit to which
+goodwill is allocated, the goodwill associated
+with the disposed cash-generating unit is
+included in the carrying amount of the cash-
+generating unit when determining the gain or
+loss on disposal.
+Other Intangible assets
+Other Intangible assets that are acquired by
+the Group and that have finite useful lives are
+measured at cost less accumulated amortisation
+and accumulated impairment losses, if any.
+Subsequent expenditures are capitalised
+only when they increase the future economic
+benefits embodied in the specific asset to
+which they relate.
+Research and development
+Expenditure on research activities undertaken
+with the prospect of gaining new scientific
+or technical knowledge and understanding
+are recognised as an expense when incurred.
+Development activities involve a plan or design
+for the production of new or substantially
+improved products and processes. An internally-
+generated intangible asset arising from
+development is recognised if and only if all of the
+following have been demonstrated:
+⚫ development costs can be measured reliably;
+⚫ the product or process is technically and
+commercially feasible;
+⚫ future economic benefits are probable; and
+⚫the Group intends to and has sufficient
+resources/ability to complete development
+and to use or sell the asset.
+The expenditure to be capitalised include
+the cost of materials and other costs directly
+attributable to preparing the asset for its
+intended use. Other development expenditure is
+recognised in profit or loss as incurred.
+Payments to third parties that generally take the
+form of up-front payments and milestones for
+in-licensed products, compounds and intellectual
+property are capitalised since the probability of
+expected future economic benefits criterion is
+always considered to be satisfied for separately
+acquired intangible assets.
+Acquired research and development intangible
+assets which are under development, are
+recognised as In-Process Research and
+Development assets ("IPR&D"). IPR&D assets
+are not amortised, but evaluated for potential
+impairment on an annual basis or when there
+are indications that the carrying value may
+not be recoverable. Any impairment charge
+on such IPR&D assets is recognised in profit
+or loss. Intangible assets relating to products
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+h.
+under development, other intangible assets not
+available for use and intangible assets having
+indefinite useful life are tested for impairment
+annually, or more frequently when there is an
+indication that the assets may be impaired. All
+other intangible assets are tested for impairment
+when there are indications that the carrying
+value may not be recoverable.
+The consideration for acquisition of intangible
+asset which is based on reaching specific
+milestone that are dependent on the Group's
+future activity is recognised only when the
+activity requiring the payment is performed.
+Subsequent expenditures are capitalised
+only when they increase the future economic
+benefits embodied in the specific asset to which
+they relate. All other expenditures, including
+expenditures on internally generated goodwill
+and brands, are recognised in the statement of
+profit and loss as incurred.
+Amortisation is recognised on a straight-line
+basis over the estimated useful lives of intangible
+assets. Intangible assets that are not available
+for use are amortised from the date they are
+available for use.
+The estimated useful lives for Product related
+intangibles and Other intangibles ranges
+from 3 to 20 years.
+The estimated useful life and amortisation
+method are reviewed at the end of each
+reporting period, with the effect of any
+changes in estimate being accounted for on a
+prospective basis.
+Intangible assets are de-recognised either on
+their disposal or where no future economic
+benefits are expected from their use. Gain or loss
+arising on such de-recognition is recognised in
+profit or loss, and are measured as the difference
+between the net disposal proceeds, if any, and
+the carrying amount of respective intangible
+assets as on the date of de-recognition.
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL
+when the financial liability is held for trading or is
+designated upon initial recognition as at fair value
+through profit or loss. Financial liabilities are
+classified as held for trading if they are incurred
+principally for the purpose of repurchasing in
+the near term or on initial recognition it is part
+of a portfolio of identified financial instruments
+2-16
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+• The contractual rights to receive cash flows
+from the asset have expired, or
+• The Group has transferred its rights to receive
+contractual cash flows from the asset or has
+assumed an obligation to pay the received cash
+flows in full without material delay to a third
+party under a 'pass-through' arrangement;
+and either (a) the Group has transferred
+substantially all the risks and rewards of the
+asset, or (b) the Group has neither transferred
+nor retained substantially all the risks and
+rewards of the asset, but has transferred
+control of the asset.
+When the Group has transferred its rights to
+receive cash flows from an asset or has entered
+into a pass-through arrangement, it evaluates
+if and to what extent it has retained the risks
+and rewards of ownership. When it has neither
+transferred nor retained substantially all of the
+risks and rewards of the asset, nor transferred
+197>>
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+198
+control of the asset, the Group continues to
+recognise the transferred asset to the extent of
+the Group's continuing involvement. In that case,
+the Group also recognises an associated liability.
+The transferred asset and the associated liability
+are measured on a basis that reflects the rights
+and obligations that the Group has retained.
+On derecognition of a financial asset in
+its entirety, the difference between the
+asset's carrying amount and the sum of the
+consideration received and receivable and the
+cumulative gain or loss that had been recognised
+in OCI and accumulated in equity is recognised
+in profit or loss if such gain or loss would have
+otherwise been recognised in profit or loss on
+disposal of that financial asset.
+Impairment of financial assets
+In accordance with Ind AS 109, the Group
+applies expected credit loss (ECL) model for
+measurement and recognition of impairment
+loss on the Trade receivables or any contractual
+right to receive cash or another financial asset
+that result from transactions that are within the
+scope of Ind AS 115.
+The Group follows 'simplified approach' for
+recognition of impairment loss allowance on
+trade receivables or any contractual right to
+receive cash or another financial asset. The
+application of simplified approach does not
+require the Group to track changes in credit risk.
+Rather, it recognises impairment loss allowance
+based on lifetime ECLs at each reporting date,
+right from its initial recognition.
+As a practical expedient, the Group uses a
+provision matrix to determine impairment loss
+allowance on portfolio of its trade receivables.
+The provision matrix is based on its historically
+observed default rates over the expected life
+of the trade receivables and is adjusted for
+forward-looking estimates. At every reporting
+date, the historical observed default rates are
+updated and changes in the forward-looking
+estimates are analysed.
+Financial liabilities and equity instruments
+Classification as debt or equity
+Debt and equity instruments issued by a Group
+entity are classified as either financial liabilities or
+as equity in accordance with the substance of the
+contractual arrangements and the definitions of a
+financial liability and an equity instrument.
+Equity instruments
+An equity instrument is any contract that
+evidences a residual interest in the assets of
+an entity after deducting all of its liabilities.
+Equity instruments issued by a Group entity
+are recognised at the proceeds received, net of
+direct issue costs.
+Repurchase of the Parent Company's own equity
+instruments is recognised and deducted directly
+in equity. No gain or loss is recognised in profit or
+loss on the purchase, sale, issue or cancellation of
+the Parent Company's own equity instruments.
+Compound financial instruments
+The component parts of compound financial
+instruments (convertible notes) issued by the
+Group are classified separately as financial
+liabilities and equity in accordance with the
+substance of the contractual arrangements
+and the definitions of a financial liability and an
+equity instrument.
+Initial recognition and measurement
+All financial liabilities are recognised initially
+at fair value and, in the case of loans and
+borrowings and payables, net of directly
+attributable transaction costs.
+The Company's financial liabilities include trade
+and other payables, loans and borrowings
+including bank overdrafts and lease liabilities,
+financial guarantee contracts and derivative
+financial instruments.
+Subsequent measurement
+A financial asset (or, where applicable, a part
+of a financial asset or part of a group of similar
+financial assets) is primarily derecognised
+(i.e. removed from the Group's consolidated
+balance sheet) when:
+• Debt instruments at amortised cost
+Derecognition
+If the Group decides to classify an equity
+instrument as at FVTOCI, then all fair value
+changes on the instrument, including foreign
+exchange gain or loss and excluding dividends,
+are recognised in the OCI. There is no recycling
+of the amounts from OCI to profit or loss, even
+on sale of investment. However, the Group may
+transfer the cumulative gain or loss within equity.
+• Debt instruments and equity instruments at
+fair value through profit or loss (FVTPL)
+• Equity instruments measured at fair
+value through other comprehensive
+income (FVTOCI)
+Debt instruments at amortised cost
+A 'debt instrument' is measured at the amortised
+cost if both the following conditions are met:
+a)
+b)
+The asset is held within a business model
+whose objective is to hold assets for
+collecting contractual cash flows, and
+Contractual terms of the asset give rise on
+specified dates to cash flows that are solely
+payments of principal and interest (SPPI) on
+the principal amount outstanding.
+After initial measurement, such financial assets
+are subsequently measured at amortised cost
+using the effective interest rate (EIR) method.
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+Amortised cost is calculated by taking into
+account any discount or premium on acquisition
+and fees or costs that are an integral part of
+the EIR. The EIR amortisation is included in
+Other Income in the profit or loss. The losses
+arising from impairment are recognised in the
+profit or loss.
+Debt instrument at FVTOCI
+A 'debt instrument' is measured as at FVTOCI if
+both of the following criteria are met:
+a)
+b)
+The objective of the business model is
+achieved both by collecting contractual cash
+flows and selling the financial assets, and
+The contractual terms of the instrument give
+rise on specified dates to cash flows that are
+SPPI on the principal amount outstanding.
+Debt instruments included within the FVTOCI
+category are measured initially as well as at
+each reporting date at fair value. Fair value
+movements are recognised in the other
+comprehensive income (OCI). However, the
+Group recognises interest income, impairment
+losses and reversals and foreign exchange gain
+or loss in the profit or loss. On derecognition
+of the asset, cumulative gain or loss previously
+recognised in OCI is reclassified from the equity
+to profit or loss. Interest earned whilst holding
+FVTOCI debt instrument is reported as interest
+income using the EIR method.
+Debt instrument at FVTPL
+FVTPL is a residual category for debt
+instruments. Any debt instrument, which
+does not meet the criteria for categorisation
+as at amortised cost or as FVTOCI, is
+classified as at FVTPL.
+In addition, the Group may elect to designate
+a debt instrument, which otherwise meets
+amortised cost or FVTOCI criteria, as at FVTPL.
+However, such election is allowed only if
+doing so reduces or eliminates a measurement
+or recognition inconsistency (referred to as
+'accounting mismatch').
+Debt instruments included within the FVTPL
+category are measured at fair value with all the
+changes in the profit or loss.
+Equity instruments
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which
+are held for trading are classified as at FVTPL.
+For all other equity instruments, the Group
+may make an irrevocable election to present
+subsequent changes in the fair value in OCI. The
+Group makes such election on an instrument-by-
+instrument basis. The classification is made on
+initial recognition and is irrevocable.
+Equity instruments included within the FVTPL
+category are measured at fair value with all
+changes recognised in the profit or loss.
+Software for internal use, which is primarily
+acquired from third-party vendors and which
+is an integral part of a tangible asset, including
+consultancy charges for implementing the
+software, is capitalised as part of the related
+tangible asset. Subsequent costs associated with
+maintaining such software are recognised as
+expense as incurred. The capitalised costs are
+amortised over the lower of the estimated useful
+life of the software and the remaining useful life
+of the tangible fixed asset.
+2-30
+Cash and cash equivalents
+As at April 01, 2018
+At cost or deemed cost
+1992 393 388
+།་ ་་ ་ ་།། ་ ་ ་ །སྣ་ །་ ག་པ་ ་ ། །་། ། ་།
+59.9
+2,052.9 38,215.8
+0.8
+(833.0)
+833.0
+302.6 14,507.3
+(176.3)
+54.4
+P
+63.0
+Consolidation
+891.9
+892.9
+2,355.5 52,723.1
+(224.7)
+72.4
+1,848.0 46,955.7
+1,045.2
+lease
+operating
+under
+given
+equipment equipment
+Plant and
+lease *
+finance operating
+lease*
+land
+(892.9)
+under
+adjustments
+Additions
+1.6
+(1.1)
+259.7 11,121.5
+As at March 31, 2019
+As at March 31, 2020
+As at March 31, 2020
+Net book value
+Reclassified to Right-of-
+use assets
+Eliminated on disposals
+of assets
+Depreciation expense
+Impairment losses
+recognised in profit
+or loss
+Taken over on
+acquisition ^
+adjustments
+<<208
+As at March 31, 2019
+Eliminated on disposals
+of assets
+Depreciation expense
+Impairment losses
+recognised in profit
+or loss
+Taken over on
+acquisition ^
+Taken over on
+acquisition ^
+As at April 01, 2018
+depreciation and
+impairment
+Accumulated
+As at March 31, 2020
+use assets
+Reclassified to Right-of-
+Disposals
+Additions
+acquisition ^
+Taken over on
+adjustments
+Consolidation
+As at March 31, 2019
+Disposals
+Consolidation
+adjustments
+Notes to the Consolidated Financial Statements
+under
+Freehold Leasehold
+(100.6)
+288.7
+22.7
+1,168.2
+་་ ་ ་ ་ ་ ་ ་ །། །༅།
+101.4 100,274.2
+FI
+1.4
+2,289.4
+345.6
+(315.6)
+སྦྱོཎྜ་ །
+110.1 167,554.7
+2,210.6
+48.8
+(112.6)
+1,379.0
+340.5
+1,948.4
+equipment
+Office
+CRIPT
+ཙྪ༔།་་་
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Financial Statements
+2.7
+2.7
+lease*
+finance
+under
+taken
+and
+fixtures
+34.3
+given
+25.9
+288.2
+taken
+Buildings Buildings
+17 prin FI
+༄༄ །་ མ །༄༅ ་ ་ ་ ་ ། ། ། །་ ༅་ །་ །༄༅།་ ས་ །་ ་ །། །
+(23.0)
+2.2
+20.8
+(0.9)
+1.0
+20.7
+565.0 109,746.5
+(23.3)
+1.7
+21.6
+(0.9)
+མཎྜ་།།།་
+1.4
+། །g･ ་  ིི ིི་་། །༄༄། །
+་ ག་ ་།་། ་་ ་ ་ ་ ་ ་ ་ ་ ་ ༴ ས་། །མ་།
+རྞྞ༄༅
+༔
+Not
+1.1
+0.4
+0.7
+(2.7)
+རྞྞ ། །･ །༄༄ 「･ །་ ༄ ༄ ་ །་་་ ། 「་ །༄།།
+904.6
+831.6
+1,384.8
+(308.3)
+21.1
+Cash and cash equivalent in the consolidated
+balance sheet comprise cash at banks and
+on hand and short-term deposits with an
+original maturity of three months or less,
+which are subject to an insignificant risk of
+changes in value.
+207 >>>
+existing standards. There is no such notification
+which would have been applicable from
+Possible obligations which will be confirmed
+only by future events not wholly within the
+control of the Company, or
+(ii) Present obligations arising from past events
+where it is not probable that an outflow
+of resources will be required to settle the
+obligation or a reliable estimate of the
+amount of the obligation cannot be made.
+Contingent assets are not recognised in the
+consolidated financial statements. A contingent
+asset is disclosed where an inflow of economic
+benefits is probable. Contingent assets are
+assessed continually and, if it is virtually certain
+that an inflow of economic benefits will arise, the
+asset and related income are recognised in the
+period in which the change occurs.
+Revenue
+Sale of goods
+Revenue from contracts with customers is
+recognised when control of the goods or services
+are transferred to the customer at an amount
+203 >>
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+K204
+that reflects the consideration to which the
+Group expects to be entitled in exchange for
+those goods or services. The Group has generally
+concluded that it is the principal in its revenue
+arrangements, since it is the primary obligor in
+all of its revenue arrangement, as it has pricing
+latitude and is exposed to inventory and credit
+risks. Revenue is stated net of goods and service
+tax and net of returns, chargebacks, rebates and
+other similar allowances. These are calculated on
+the basis of historical experience and the specific
+terms in the individual contracts.
+In determining the transaction price, the Group
+considers the effects of variable consideration,
+the existence of significant financing
+components, non-cash consideration, and
+consideration payable to the customer (if any).
+The Group estimates variable consideration at
+contract inception until it is highly probable that
+a significant revenue reversal in the amount of
+cumulative revenue recognised will not occur
+when the associated uncertainty with the
+variable consideration is subsequently resolved.
+(i)
+Profit Sharing Revenues
+Revenue in an amount equal to the base purchase
+price is recognised in these transactions upon
+delivery of products to the business partners. An
+additional amount representing the profit share
+component is recognised as revenue only to the
+extent that it is highly probable that a significant
+reversal will not occur.
+Out-licensing arrangements
+Revenues include amounts derived from product
+out-licensing agreements. These arrangements
+typically consist of an initial up-front payment
+on inception of the license and subsequent
+payments dependent on achieving certain
+milestones in accordance with the terms
+prescribed in the agreement. Non-refundable
+up-front license fees received in connection
+with product out-licensing agreements are
+deferred and recognised over the period in
+which the Company has continuing performance
+obligations. Milestone payments which
+are contingent on achieving certain clinical
+milestones are recognised as revenues either on
+achievement of such milestones, if the milestones
+are considered substantive, or over the period
+the Company has continuing performance
+obligations, if the milestones are not considered
+substantive. If milestone payments are
+creditable against future royalty payments, the
+milestones are deferred and released over the
+period in which the royalties are anticipated
+to be received.
+Sales returns
+The Group accounts for sales returns accrual
+by recording an allowance for sales returns
+concurrent with the recognition of revenue
+at the time of a product sale. This allowance
+is based on the Group's estimate of expected
+sales returns. With respect to established
+products, the Group considers its historical
+experience of sales returns, levels of inventory
+in the distribution channel, estimated shelf
+life, product discontinuances, price changes of
+competitive products, and the introduction of
+competitive new products, to the extent each
+of these factors impact the Group's business
+and markets. With respect to new products
+introduced by the Group, such products have
+historically been either extensions of an existing
+line of product where the Group has historical
+experience or in therapeutic categories where
+established products exist and are sold either by
+the Company or the Company's competitors.
+Contract balances
+Contract assets
+A contract asset is the right to consideration in
+exchange for goods or services transferred to the
+customer. If the Group performs by transferring
+goods or services to a customer before the
+customer pays consideration or before payment
+is due, a contract asset is recognised for the
+earned consideration that is conditional.
+Trade receivables
+A receivable represents the Group's right to an
+amount of consideration that is unconditional
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+The Company from time to time enters into
+arrangements for the sale of its products in
+certain markets. Under such arrangements,
+the Company sells its products to the business
+partners at a base purchase price agreed upon in
+the arrangement and is also entitled to a profit
+share which is over and above the base purchase
+price. The profit share is typically dependent
+on the ultimate net sale proceeds or net profits,
+subject to any reductions or adjustments that are
+required by the terms of the arrangement.
+p.
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+Onerous contracts
+The factors that the Company considers in
+determining the allowance for slow moving,
+obsolete and other non-saleable inventory
+include estimated shelf life, planned product
+discontinuances, price changes, ageing of
+inventory and introduction of competitive new
+products, to the extent each of these factors
+impact the Company's business and markets. The
+Company considers all these factors and adjusts
+the inventory provision to reflect its actual
+experience on a periodic basis
+Annual Report 2019-20
+n.
+m.
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+Net realisable value is the estimated selling
+price in the ordinary course of business, less
+the estimated costs of completion and costs
+necessary to make the sale.
+packing materials, work-in-progress, stock-in-
+trade, stores and spares and finished goods are
+measured at the lower of cost and net realisable
+value. The cost of all categories of inventories
+is based on the weighted average method. Cost
+of raw materials and packing materials, stock-
+in-trade, stores and spares includes cost of
+purchases and other costs incurred in bringing
+the inventories to its present location and
+condition. Cost of work-in-progress and finished
+goods comprises direct material, direct labour
+and an appropriate proportion of variable and
+fixed overhead expenditure.
+Inventories consisting of raw materials and
+For the purpose of the consolidated statement of
+cash flows, cash and cash equivalents consist of
+cash and short-term deposits, as defined above,
+net of outstanding bank overdrafts as they are
+considered an integral part of the Company's
+cash management.
+Rental income from operating lease is
+generally recognised on a straight-line
+basis over the term of the relevant lease.
+Where the rentals are structured solely
+to increase in line with expected general
+inflation to compensate for the Group's
+expected inflationary cost increases, such
+increases are recognised in the year in which
+such benefits accrue. Initial direct costs
+incurred in negotiating and arranging an
+operating lease are added to the carrying
+amount of the leased asset and recognised
+over the lease term on the same basis
+as rental income. Contingent rents are
+recognised as revenue in the period in which
+they are earned.
+Group as a lessor
+Short-term leases and leases of low-value assets
+The Company applies the short-term
+lease recognition exemption to its short-
+term leases (i.e., those leases that have a
+lease term of 12 months or less from the
+commencement date and do not contain a
+purchase option). It also applies the lease of
+low-value assets recognition exemption to
+leases that are considered to be low value.
+Lease payments on short-term leases and
+leases of low-value assets are recognised
+as expense on a straight-line basis over
+the lease term.
+Present obligations arising under onerous
+contracts are recognised and measured as
+provisions. An onerous contract is considered
+to exist where the Group has a contract under
+which the unavoidable costs of meeting the
+obligations under the contract exceed the
+economic benefit expected to be received
+from the contract.
+iii)
+In calculating the present value of lease
+payments, the Company uses its incremental
+borrowing rate at the lease commencement
+date because the interest rate implicit in the
+lease is not readily determinable. After the
+commencement date, the amount of lease
+liabilities is increased to reflect the accretion
+of interest and reduced for the lease
+payments made. In addition, the carrying
+amount of lease liabilities is remeasured if
+there is a modification, a change in the lease
+term, a change in the lease payments (e.g.,
+changes to future payments resulting from a
+change in an index or rate used to determine
+such lease payments) or a change in the
+assessment of an option to purchase the
+underlying asset.
+At the commencement date of the lease,
+the Company recognises lease liabilities
+measured at the present value of lease
+payments to be made over the lease term.
+The lease payments include fixed payments
+(including insubstance fixed payments) less
+any lease incentives receivable, variable
+lease payments that depend on an index
+or a rate, and amounts expected to be paid
+under residual value guarantees. The lease
+payments also include the exercise price of
+a purchase option reasonably certain to be
+exercised by the Company and payments
+of penalties for terminating the lease, if the
+lease term reflects the Company exercising
+the option to terminate.
+Lease Liabilities
+The right-of-use assets are also subject
+to impairment. Refer to the accounting
+policies in section (g) Impairment of non-
+financial assets.
+5 years
+⚫ Office Equipment
+• Vehicles
+• Plant and Machinery
+Provisions, contingent liabilities and contingent
+assets
+Provisions are recognised when the Group has
+a present obligation (legal or constructive) as a
+result of past event, it is probable that an outflow
+of resources embodying economic benefits
+will be required to settle the obligation and a
+reliable estimate can be made of the amount of
+obligation. When the Company expects some or
+all of a provision to be reimbursed, for example,
+under an insurance contract, the reimbursement
+is recognised as a separate asset, but only when
+the reimbursement is certain. The expense
+relating to a provision is presented in the
+consolidated statement of profit and loss net of
+any reimbursement.
+If the effect of the time value of money
+is material, provisions are determined by
+discounting the expected future cash flows
+at a pre-tax rate that reflects current market
+assessments of the time value of money and the
+risks specific to the liability. Where discounting
+is used, the increase in the provision due to the
+passage of time is recognised as a finance cost.
+0.
+Restructuring
+A provision for restructuring is recognised when
+the Group has a detailed formal restructuring
+plan and has raised a valid expectation in those
+affected that it will carry out the restructuring
+by starting to implement the plan or announcing
+its main features to those affected by it. The
+measurement of a restructuring provision
+includes only the direct expenditure arising
+from the restructuring, which are those
+amounts that are both necessarily entailed by
+the restructuring and not associated with the
+ongoing activities of the entity.
+I.
+April 01, 2020.
+Annual Report 2019-20
+Contract liabilities
+t.
+instruments that will eventually vest. At the end
+of each reporting period, the Group revises its
+estimate of the number of equity instruments
+expected to vest. The impact of the revision
+of the original estimates, if any, is recognised
+in profit or loss such that the cumulative
+expense reflects the revised estimate, with a
+corresponding adjustment to the equity-settled
+employee benefits reserve.
+For cash-settled share-based payments, a liability
+is recognised for the goods or services acquired,
+measured initially at the fair value of the liability.
+At the end of each reporting period until the
+liability is settled, and at the date of settlement,
+the fair value of the liability is remeasured, with
+any changes in fair value recognised in profit or
+loss for the year.
+Borrowing costs
+Borrowing costs that are directly attributable to
+the construction or production of a qualifying
+asset are capitalised as part of the cost of that
+asset. All other borrowing costs are expensed
+in the period in which they occur. Borrowing
+costs consist of interest and other costs that an
+entity incurs in connection with the borrowing
+of funds. Borrowing cost also includes exchange
+differences to the extent regarded as an
+adjustment to the borrowing costs. A qualifying
+asset is one that necessarily takes substantial
+period of time to get ready for its intended use.
+Income tax
+Income tax expense consists of current and
+deferred tax. Income tax expense is recognised in
+profit or loss except to the extent that it relates
+to items recognised in OCI or directly in equity,
+in which case it is recognised in OCI or directly in
+equity respectively. Current tax is the expected
+tax payable on the taxable profit for the year,
+using tax rates enacted or substantively enacted
+by the end of the reporting period, and any
+adjustment to tax payable in respect of previous
+years. Current tax assets and tax liabilities
+are offset where the Company has a legally
+enforceable right to offset and intends either to
+settle on a net basis, or to realise the asset and
+settle the liability simultaneously.
+Deferred tax is recognised on temporary
+differences between the carrying amounts of
+assets and liabilities in the consolidated financial
+statements and the corresponding tax bases
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+used in the computation of taxable profit.
+Deferred tax is not recognised for the temporary
+differences that arise on the initial recognition
+of assets or liabilities in a transaction that is not
+a business combination and that affects neither
+accounting nor taxable profits and taxable
+temporary differences arising upon the initial
+recognition of goodwill.
+Deferred tax is measured at the tax rates that
+are expected to be applied to the temporary
+differences when they reverse, based on the laws
+that have been enacted or substantively enacted
+by the end of the reporting period. Deferred tax
+assets and liabilities are offset if there is a legally
+enforceable right to set off corresponding current
+tax assets against current tax liabilities and the
+deferred tax assets and deferred tax liabilities
+relate to income taxes levied by the same tax
+authority on the Company.
+S.
+The Company recognises a deferred tax asset
+arising from unused tax losses or tax credits
+only to the extent that the entity has sufficient
+taxable temporary differences or there is
+convincing other evidence that sufficient
+taxable profit will be available against which the
+unused tax losses or unused tax credits can be
+utilised by the entity.
+Accruals for uncertain tax positions require
+management to make judgments of potential
+exposures. Accruals for uncertain tax positions
+u.
+V.
+W.
+are measured using either the most likely amount
+or the expected value amount depending on
+which method the entity expects to better
+predict the resolution of the uncertainty.
+Tax benefits are not recognised unless the
+management based upon its interpretation
+of applicable laws and regulations and the
+expectation of how the tax authority will resolve
+the matter concludes that such benefits will be
+accepted by the authorities. Once considered
+probable of not being accepted, management
+reviews each material tax benefit and reflects
+the effect of the uncertainty in determining the
+related taxable amounts.
+Earnings per share
+The Parent Company presents basic and diluted
+earnings per share ("EPS") data for its equity
+shares. Basic EPS is calculated by dividing the
+profit or loss attributable to equity shareholders
+of the Parent Company by the weighted average
+number of equity shares outstanding during
+the period. Diluted EPS is determined by
+adjusting the profit or loss attributable to equity
+shareholders and the weighted average number
+of equity shares outstanding for the effects of all
+dilutive potential ordinary shares, which includes
+all stock options granted to employees.
+The number of equity shares and potentially
+dilutive equity shares are adjusted
+retrospectively for all periods presented for any
+share splits and bonus shares issues including
+for changes effected prior to the approval of the
+financial statements by the Board of Directors.
+Exceptional items
+Exceptional items refer to items of income
+or expense, including tax items, within the
+statement of profit and loss from ordinary
+activities which are non-recurring and are of
+such size, nature or incidence that their separate
+disclosure is considered necessary to explain the
+performance of the Company.
+Recent Accounting pronouncements
+Standards issued but not yet effective and not early
+adopted by the Company
+The Ministry of Corporate Affairs ("MCA”)
+notifies new standard or amendments to the
+A deferred tax asset is recognised to the extent
+that it is probable that future taxable profits
+will be available against which the temporary
+difference can be utilised. Deferred tax assets are
+reviewed at each reporting date and are reduced
+to the extent that it is no longer probable that the
+related tax benefit will be realised. Withholding
+tax arising out of payment of dividends to
+shareholders under the Indian Income tax
+regulations is not considered as tax expense for
+the Company and all such taxes are recognised in
+the consolidated statement of changes in equity
+as part of the associated dividend payment.
+Minimum Alternate Tax ('MAT') credit is
+recognised as deferred tax asset only when and
+to the extent there is convincing evidence that
+the Company will pay normal income tax during
+the period for which the MAT credit can be
+carried forward for set-off against the normal
+tax liability. MAT credit recognised as an asset is
+reviewed at each Balance Sheet date and written
+down to the extent the aforesaid convincing
+evidence no longer exists.
+(i.e., only the passage of time is required before
+payment of the consideration is due).
+The grant date fair value of options granted
+to employees is recognised as an employee
+expense, with a corresponding increase in
+equity, on a straight line basis, over the vesting
+period, based on the Group's estimate of equity
+The Group's contributions to defined
+contribution plans are recognised as an expense
+as and when the services are received from the
+employees entitling them to the contributions.
+The Group does not have any obligation other
+than the contribution made.
+A contract liability is the obligation to transfer
+goods or services to a customer for which
+the Group has received consideration (or
+an amount of consideration is due) from the
+customer. If a customer pays consideration
+before the Group transfers goods or services to
+the customer, a contract liability is recognised
+when the payment is made or the payment is
+due (whichever is earlier). Contract liabilities are
+recognised as revenue when the Group performs
+under the contract
+Rendering of services
+Revenue from services rendered is recognised in
+the profit or loss as the underlying services are
+performed. Upfront non-refundable payments
+received are deferred and recognised as revenue
+over the expected period over which the related
+services are expected to be performed.
+Royalties
+Royalty revenue is recognised on an accrual
+basis in accordance with the substance of
+the relevant agreement (provided that it is
+probable that economic benefits will flow to
+the Group and the amount of revenue can
+be measured reliably). Royalty arrangements
+that are based on production, sales and other
+measures are recognised by reference to the
+underlying arrangement.
+Dividend and interest income
+Dividend income is recognised when the Group's
+right to receive the payment is established,
+which is generally when shareholders
+approve the dividend.
+Interest income from a financial asset is
+recognised when it is probable that the economic
+benefits will flow to the Group and the amount of
+income can be measured reliably. Interest income
+is accrued on a time basis, by reference to the
+principal outstanding and at the effective interest
+rate applicable, which is the rate that exactly
+discounts estimated future cash receipts through
+the expected life of the financial asset to that
+asset's net carrying amount on initial recognition.
+q.
+Government grants
+The Group recognises government grants only
+when there is reasonable assurance that the
+conditions attached to them will be complied
+with, and the grants will be received. When the
+grant relates to an expense item, it is recognised
+as income on a systematic basis over the
+periods that the related costs, for which it is
+intended to compensate, are expensed. When
+the grant relates to an asset, the Company
+deducts such grant amount from the carrying
+amount of the asset.
+r.
+Employee benefits
+Share-based payment arrangements
+Defined benefit plans
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method
+with actuarial valuations being carried out at
+the end of each annual reporting period. The
+present value of the defined benefit obligation is
+determined by discounting the estimated future
+cash outflows by reference to market yields at
+the end of the reporting period on government
+bonds. The currency and term of the government
+bonds shall be consistent with the currency
+and estimated term of the post-employment
+benefit obligations. The current service cost
+of the defined benefit plan, recognised in the
+profit or loss as employee benefits expense,
+reflects the increase in the defined benefit
+obligation resulting from employee service in the
+current year, benefit changes, curtailments and
+settlements. Past service costs are recognised in
+profit or loss in the period of a plan amendment.
+The net interest cost is calculated by applying the
+discount rate to the net balance of the defined
+benefit obligation and the fair value of plan
+assets. This cost is included in employee benefit
+expense in profit or loss. Actuarial gains and
+losses arising from experience adjustments and
+changes in actuarial assumptions are charged or
+credited to OCI in the period in which they arise
+and is reflected immediately in retained earnings
+and is not reclassified to profit or loss.
+Termination benefits
+Termination benefits are recognised as an
+expense in the statement of profit and loss
+205 >>>
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+206
+when the Company is demonstrably committed,
+without realistic possibility of withdrawal,
+to a formal detailed plan to either terminate
+employment before the normal retirement
+date, or to provide termination benefits as a
+result of an offer made to encourage voluntary
+redundancy. Termination benefits for voluntary
+redundancies are recognised as an expense in
+the statement of profit and loss if the Company
+has made an offer encouraging voluntary
+redundancy, it is probable that the offer will be
+accepted, and the number of acceptances can be
+estimated reliably.
+Short-term and Other long-term employee benefits
+Accumulated leave, which is expected to be
+utilised within the next 12 months, is treated
+as short-term employee benefit. The Company
+measures the expected cost of such absences
+as the additional amount that it expects to pay
+as a result of the unused entitlement that has
+accumulated at the reporting date.
+The Group treats accumulated leave expected
+to be carried forward beyond twelve months, as
+long-term employee benefit for measurement
+purposes. Such long-term compensated absences
+are provided for based on the actuarial valuation
+using the projected unit credit method at the
+year-end. Actuarial gains/losses are immediately
+taken to the consolidated statement of profit and
+loss and are not deferred.
+The Group's net obligation in respect of other
+long term employee benefits is the amount
+of future benefit that employees have earned
+in return for their service in the current and
+previous periods. That benefit is discounted to
+determine its present value.
+Defined contribution plans
+The Company operates a defined benefit gratuity
+plan which requires contribution to be made to a
+separately administered fund.
+Inventories
+Consolidation
+1-5 years
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+200
+Group's operations. Such changes are evident to
+external parties. A change in the business model
+occurs when the Group either begins or ceases
+to perform an activity that is significant to its
+operations. If the Group reclassifies financial
+assets, it applies the reclassification prospectively
+from the reclassification date which is the
+first day of the immediately next reporting
+period following the change in business model.
+The Group does not restate any previously
+recognised gains, losses (including impairment
+gains or losses) or interest.
+Derivative financial instruments and hedge accounting
+Initial recognition and subsequent measurement
+The Group uses derivative financial instruments,
+such as forward currency contracts, full currency
+swap, principal only swap, options and interest
+rate swaps to hedge its foreign currency risks
+and interest rate risks respectively. Such
+derivative financial instruments are initially
+recognised at fair value on the date on which
+a derivative contract is entered into and are
+subsequently re-measured at fair value at the
+end of each reporting period. Derivatives are
+carried as financial assets when the fair value is
+positive and as financial liabilities when the fair
+value is negative.
+Financial Statements
+Any gains or losses arising from changes in the
+fair value of derivatives are taken directly to
+profit or loss, except for the effective portion
+of cash flow hedges, which is recognised in OCI
+and later reclassified to profit or loss when the
+hedge item affects profit or loss or treated as
+basis adjustment if a hedged forecast transaction
+subsequently results in the recognition of a non-
+financial asset or non-financial liability.
+• Fair value hedges when hedging the exposure
+to changes in the fair value of a recognised
+asset or liability or an unrecognised
+firm commitment.
+• Cash flow hedges when hedging the exposure
+to variability in cash flows that is either
+attributable to a particular risk associated
+with a recognised asset or liability or a
+highly probable forecast transaction or the
+foreign currency risk in an unrecognised
+firm commitment
+• Hedges of a net investment in a
+foreign operation.
+At the inception of a hedge relationship, the
+Group formally designates and documents the
+hedge relationship to which the Group wishes to
+apply hedge accounting and the risk management
+objective and strategy for undertaking the
+hedge. The documentation includes the Group's
+risk management objective and strategy for
+undertaking hedge, the hedging/economic
+relationship, the hedged item or transaction, the
+nature of the risk being hedged, hedge ratio and
+how the entity will assess the effectiveness of
+changes in the hedging instrument's fair value in
+offsetting the exposure to changes in the hedged
+item's fair value or cash flows attributable to the
+hedged risk. Such hedges are expected to be
+highly effective in achieving offsetting changes
+in fair value or cash flows and are assessed
+on an ongoing basis to determine that they
+actually have been highly effective throughout
+the financial reporting periods for which they
+were designated.
+Hedges that meet the strict criteria for
+hedge accounting are accounted for, as
+described below:
+For the purpose of hedge accounting, hedges
+are classified as:
+199 >>>
+The Group determines classification of financial
+assets and liabilities on initial recognition. After
+initial recognition, no reclassification is made for
+financial assets which are equity instruments
+and financial liabilities. For financial assets which
+are debt instruments, a reclassification is made
+only if there is a change in the business model for
+managing those assets. Changes to the business
+model are expected to be infrequent. The
+Group's senior management determines change
+in the business model as a result of external or
+internal changes which are significant to the
+Reclassification of financial assets
+Furniture
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+that the Group manages together and has a
+recent actual pattern of short-term profit-taking.
+This category also includes derivative financial
+instruments that are not designated as hedging
+instruments in hedge relationships as defined by
+Ind AS 109. Gains or losses on liabilities held for
+trading are recognised in the profit or loss.
+Financial liabilities designated upon initial
+recognition at fair value through profit or loss
+are designated as such at the initial date of
+recognition, and only if the criteria in Ind AS
+109 are satisfied. For instruments not held-
+for-trading financial liabilities designated as at
+FVTPL, fair value gains/ losses attributable to
+changes in own credit risk are recognised in OCI,
+unless the recognition of the effects of changes
+in the liability's credit risk in OCI would create
+or enlarge an accounting mismatch in profit or
+loss, in which case these effects of changes in
+credit risk are recognised in profit or loss. These
+gains/loss are not subsequently transferred to
+profit or loss. All other changes in fair value of
+such liability are recognised in the consolidated
+statement of profit or loss.
+Financial liabilities subsequently measured at amortised
+cost
+Financial liabilities that are not held-for-trading
+and are not designated as at FVTPL are measured
+at amortised cost in subsequent accounting
+periods. The carrying amounts of financial
+liabilities that are subsequently measured at
+amortised cost are determined based on the
+effective interest rate (EIR) method. Interest
+expense that is not capitalised as part of costs
+of an asset is included in the 'Finance costs' line
+item in the profit or loss.
+After initial recognition, such financial liabilities
+are subsequently measured at amortised
+cost using the EIR method. Amortised cost is
+calculated by taking into account any discount or
+premium on acquisition and fees or costs that are
+an integral part of the EIR. The EIR amortisation
+is included as finance costs in the profit or loss.
+Financial guarantee contracts
+Financial guarantee contracts are those contracts
+that require a payment to be made to reimburse
+the holder for a loss it incurs because the
+specified debtor fails to make a payment when
+due in accordance with the terms of a debt
+instrument. Financial guarantee contracts are
+recognised initially as a liability at fair value,
+adjusted for transaction costs that are directly
+attributable to the issuance of the guarantee. If
+not designated as at FVTPL, are subsequently
+measured at the higher of the amount of loss
+allowance determined as per impairment
+requirements of Ind AS 109 and the amount
+initially recognised less cumulative amount of
+income recognised.
+Derecognition
+A financial liability is derecognised when the
+obligation under the liability is discharged or
+cancelled or expires. When an existing financial
+liability is replaced by another from the same
+lender on substantially different terms, or the
+terms of an existing liability are substantially
+modified, such an exchange or modification
+is treated as the derecognition of the original
+liability and the recognition of a new liability.
+The difference between the carrying amount
+of the financial liability derecognised and the
+consideration paid and payable is recognised in
+profit or loss.
+Embedded derivatives
+Derivatives embedded in non-derivative host
+contracts that are not financial assets within
+the scope of Ind AS 109 are accounted for as
+separate derivatives and recorded at fair value if
+their economic characteristics and risks are not
+closely related to those of the host contracts
+and the host contracts are not held for trading
+or designated at fair value though profit or loss.
+These embedded derivatives are measured at
+fair value with changes in fair value recognised
+in profit or loss, unless designated as effective
+hedging instruments.
+(i)
+Fair value hedges
+NOTE: 3A(1) PROPERTY, PLANT AND EQUIPMENT
+(ii) Cash flow hedges
+The Company recognises right-of-use assets
+at the commencement date of the lease (i.e.,
+the date the underlying asset is available
+for use). Right-of-use assets are measured
+at cost, less any accumulated depreciation
+and impairment losses, and adjusted for any
+remeasurement of lease liabilities. The cost
+of right-of-use assets includes the amount
+of lease liabilities recognised, initial direct
+costs incurred, and lease payments made
+at or before the commencement date less
+any lease incentives received. Right-of-
+use assets are depreciated on a straight-
+201 >>>
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+ii)
+line basis over the shorter of the lease
+term and the estimated useful lives of the
+assets, as follows:
+• Leasehold land
+• Building
+49-196 years
+2-25 years
+1-5 years
+⚫ Furniture and Fixture
+5 years
+Changes in fair value of the designated
+portion of derivatives that qualify as fair
+value hedges are recognised in profit or loss
+immediately, together with any changes in
+the fair value of the hedged asset or liability
+that are attributable to the hedged risk.
+Right-of-use assets
+i)
+202
+Company as a lessee
+The effective portion of changes in the
+fair value of the hedging instrument is
+recognised in OCI in the cash flow hedge
+reserve, while any ineffective portion is
+recognised immediately in profit or loss. The
+Group uses forward currency contracts as
+hedges of its exposure to foreign currency
+risk in forecast transactions and firm
+commitments. Amounts recognised as
+OCI are transferred to profit or loss when
+the hedged transaction affects profit or
+The Company applies a single recognition and
+measurement approach for all leases, except
+for short-term leases and leases of low-
+value assets. The Company recognises lease
+liabilities to make lease payments and right-
+of-use assets representing the right to use the
+underlying assets.
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+loss, such as when a forecast sale occurs.
+When the hedged item is the cost of a non-
+financial asset or non-financial liability, the
+amounts recognised as OCI are transferred
+to the initial carrying amount of the non-
+financial asset or liability.
+If the hedging instrument expires or is
+sold, terminated or exercised or if its
+designation as a hedge is revoked, or when
+the hedge no longer meets the criteria for
+hedge accounting, any cumulative gain or
+loss previously recognised in OCI remains
+separately in equity until the forecast
+transaction occurs or the foreign currency
+firm commitment is met. When a forecast
+transaction is no longer expected to occur,
+the gain or loss accumulated in equity is
+recognised immediately in profit or loss.
+(iii) Net Investment Hedge
+The group designates certain foreign
+currency liability as hedge against certain
+net investment in foreign subsidiaries.
+Hedges of net investments in foreign
+operations are accounted similar to cash
+flow hedges. Any gain or loss on the
+hedging instrument relating to the effective
+portion of the hedge is recognised in other
+comprehensive income and held in foreign
+currency translation reserve ('FCTR')- a
+component of equity. The ineffective
+portion of the gain or loss on these
+hedges is immediately recognised in the
+consolidated statement of profit and loss.
+The amounts accumulated in equity are
+included in the statement of profit and loss
+when the foreign operation is disposed or
+partially disposed.
+The Transformation Journey
+The Group has created an Employee Benefit
+Trust (EBT) for providing share-based payment to
+its employees. The Group uses EBT as a vehicle
+for distributing shares to employees under the
+employee remuneration schemes. The Group
+treats EBT as its extension and shares held by
+EBT are treated as treasury shares.
+The Company assesses at contract inception
+whether a contract is, or contains, a lease. That
+is, if the contract conveys the right to control
+the use of an identified asset for a period of
+time in exchange for consideration. To assess
+whether a contract conveys the right to control
+the use of an identified asset, the Company
+assesses whether: (i) the contract involves the
+use of an identified asset (ii) the Company has
+substantially all of the economic benefits from
+use of the asset through the period of the lease
+and (iii) the Company has the right to direct the
+use of the asset.
+Own equity instruments that are reacquired
+(treasury shares) are deducted from equity. No
+gain or loss is recognised in profit or loss on
+the purchase, sale, issue or cancellation of the
+k.
+Group's own equity instruments. Consideration
+paid or received shall be recognised
+directly in equity.
+Dividend distribution to equity holders of the Parent
+The Parent Company recognises a liability to
+make dividend distributions to equity holders of
+the parent when the distribution is authorised
+and the distribution is no longer at the discretion
+of the Parent Company. As per the corporate
+laws in India, a distribution is authorised when it
+is approved by the shareholders. A corresponding
+amount is recognised directly in equity.
+Leases
+Treasury shares
+3,894.8
+70.2
+1,116.8
+1.7
+5,083.5
+As at
+March 31, 2020
+28,608.8
+327.2
+28,936.0
+* in Million
+As at
+March 31, 2019
+213 >>>
+27,837.8
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+(i)
+As at
+March 31, 2019
+27,530.2
+307.6
+* in Million
+0.9
+4,489.6
+53.6
+1,656.0
+1.4
+3.0
+2.6
+610.8
+638.6
+24.4
+120.7
+1.7
+6,200.9
+434.1
+787.7
+* in Million
+As at
+March 31, 2020
+33,842.5
+33,842.5
+As at
+March 31, 2019
+32,660.9
+32,660.9
+As at
+March 31, 2020
+1,048.8
+Work-in-progress
+78,749.9
+Stock-in-trade
+NOTE : 12 INVESTMENTS (CURRENT)
+In government securities
+Quoted - At Fair value through other comprehensive
+income
+7.86% Government of Rajasthan UDAY 2019
+Bond of 1 each fully paid maturing June 23, 2019
+8.01% Government of Rajasthan UDAY 2020
+Bond of *1 each fully paid maturing June 23, 2020
+Quoted - At Fair value through other comprehensive
+income
+Investment in others@
+In bonds/debentures
+Quoted - At Fair value through other comprehensive
+income
+ONGC Videsh Limited
+JSW Steel Limited
+Oil India Limited
+Investment in bonds (various small denomination
+investments)
+In convertible promissory note
+Unquoted - At Fair value through profit and loss
+In mutual funds *
+Unquoted - At Fair value through profit and loss
+(ii) The cost of inventories recognised as an expense is disclosed in notes 32, 33 and 36 and as purchases of stock-in-
+trade in the consolidated statement of profit and loss.
+Inventory write downs are accounted, considering the nature of inventory, estimated shelf life, planned product
+discontinuances, price changes, ageing of inventory and introduction of competitive new products as well as
+provisioning policy of the company. Write downs of inventories amounted to $20,762.3 Million (March 31, 2019:
+*16,690.2 Million). The changes in write downs are recognised as an expense in the consolidated statement of
+profit and loss.
+78,859.8
+March 31, 2019
+Goods-in-transit
+Stores and spares
+As at
+March 31, 2020
+* in Million
+As at
+March 31, 2019
+15,890.8
+18,337.1
+27,248.5
+Finished goods
+24,430.7
+7,151.3
+140.3
+83.8
+5,725.1
+7,235.1
+949.5
+1,019.1
+5,584.8
+March 31, 2020
+Balances with government authorities*
+As at
+7,208.3
+7,309.1
+50,027.9
+37,092.7
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+42,813.8
+29,711.7
+Unquoted - At fair value through Profit and Loss
+42,813.8
+Aggregate amount of unquoted investments before
+impairment
+Aggregate amount of impairment in value of investments
+8,342.9
+8,493.4
+*Includes investment in various small denomination bonds, U.S Treasuries, certificate of deposits and commercial papers.
+1,112.4
+1,128.8
+29,711.7
+<<212
+In venture funds
+700,000
+163,131
+170.2
+163,131
+170.0
+ONGC Videsh 4.625% Regd. Notes
+NTPC 4.375% Regd. Euro Medium Term Notes
+16,000,000
+10,000,000
+507.0
+1,109.3
+1,149.7
+735.8
+10,000,000
+712.7
+State Bank of India 4.875% Notes
+700,000
+531.4
+16,000,000
+As at
+The Transformation Journey
+for the year ended March 31, 2020
+Other assets
+* Includes amount paid under protest
+NOTE: 11 INVENTORIES
+Lower of cost and net realisable value
+Raw materials and packing materials
+Goods-in-transit
+Annual Report 2019-20
+* in Million
+As at March 31, 2020
+Quantity
+As at
+March 31, 2020
+3.4
+3.1
+4.5
+167.3
+7.9
+170.4
+* in Million
+As at
+March 31, 2019
+Notes to the Consolidated Financial Statements
+Prepaid expenses
+NOTE: 10 OTHER NON-CURRENT ASSETS
+NOTE: 7 LOANS (NON-CURRENT)
+Loans to employees/others
+*
+Secured, considered good
+Unsecured, considered good
+* Others: Loans given to various parties at prevailing market interest rate.
+NOTE : 8 OTHER FINANCIAL ASSETS (NON-CURRENT)
+Capital advances
+Deposits
+Security deposits - unsecured, considered good
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Unbilled revenue (Refer note 53)
+NOTE: 9 INCOME TAX ASSET (NET) [NON-CURRENT]
+Advance income tax (net of provisions)*
+* Includes amount paid under protest
+Margin money/ security against guarantees/ commitments
+* in Million
+<<214
+* in Million
+Refund due from government authorities
+Others
+Less: Allowance for doubtful others*
+As at
+March 31, 2020
+377.2
+* in Million
+As at
+March 31, 2019
+283.3
+0.8
+1,105.8
+20.6
+2,789.6
+10.2
+9.8
+(10.2)
+(9.8)
+1,106.6
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Security deposits (unsecured, considered good)
+Interest accrued on investments/balances with banks
+(#) Balances held as margin money amounting to 17.5 Million (March 31, 2019: 38.3 Million) which have an original maturity of more
+than 12 months.
+215 >>>
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+NOTE: 16 LOANS (CURRENT)
+2,810.2
+Loans to related parties
+Loans to employees/others *
+Secured, considered good
+Unsecured, considered good
+Loans to employees/others - credit impaired
+Less: Allowance for credit impaired
+* Others: Loans given to various parties at prevailing market interest rate.
+NOTE : 17 OTHER FINANCIAL ASSETS (CURRENT)
+Unsecured, considered good (Refer note 68)
+1,483.8
+3,093.5
+* in Million
+Prepaid expenses
+Advances for supply of goods and services
+Considered good
+Considered doubtful
+Less: Allowance for doubtful
+Balances with government authorities*
+Others
+Export incentives receivable
+* in Million
+As at
+March 31, 2019
+3,440.5
+3,347.8
+1,857.5
+1,694.8
+3,942.3
+3,764.2
+As at
+March 31, 2020
+2,133.0
+NOTE: 18 OTHER CURRENT ASSETS
+7,177.0
+As at
+March 31, 2020
+As at
+March 31, 2019
+120.5
+164.7
+150.9
+105.0
+342.4
+* The Group has recognised an allowance of 500.0 Million (March 31, 2019: Nil) against other receivables (Others) based on assessment
+regarding recoverability of the same.
+535.2
+133.5
+5,848.6
+5,181.9
+3,209.5
+1,056.7
+(500.0)
+9,293.4
+121.5
+8,109.4
+345.4
+124.8
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+Aggregate amount of unquoted investments before impairment
+Aggregate amount of impairment in value of investments
+NOTE: 13 TRADE RECEIVABLES
+Unsecured, considered good
+Credit impaired
+Less: Allowance for credit impaired (expected credit loss allowance)
+The Transformation Journey
+NOTE: 14 CASH AND CASH EQUIVALENTS
+In current accounts
+In deposit accounts with original maturity less than 3 months
+Cheques, drafts on hand
+Cash on hand
+As at
+Annual Report 2019-20
+March 31, 2020
+Balance with banks
+44,936.8
+39,507.2
+@ Includes investment in various small denomination U.S Treasuries, certificate of deposits and commercial papers.
+27,400,000
+27.0
+20,421.6
+27,400,000
+26.9
+18,812.5
+200,000
+7,000,000
+1,000,000
+5,621.2
+13.8
+69.0
+24,488.2
+14,480.8
+113.1
+3,923.7
+48,973.6
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+483.0
+As at March 31, 2019
+Quantity
+in Million
+33,886.0
+33,540.6
+36,308.9
+764.3
+9.2
+70,623.0
+56,766.1
+NOTE: 15 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 14 ABOVE
+Deposit accounts
+As at
+March 31, 2020
+3,658.3
+As at
+March 31, 2019
+* in Million
+As at
+March 31, 2019
+Earmarked balances with banks
+Escrow account - Buy back
+Unpaid dividend accounts
+Balances held as margin money or security against guarantees and other commitments (#)
+4,250.0
+76.3
+90.7
+1,696.9
+As at
+March 31, 2019
+18,936.0
+37,662.8
+152.7
+14.6
+* in Million
+33,886.0
+5,621.2
+As at
+March 31, 2020
+94,212.4
+in Million
+As at
+March 31, 2019
+As at
+March 31, 2020
+88,842.0
+2,246.1
+96,726.1
+91,088.1
+(2,513.7)
+(2,246.1)
+94,212.4
+88,842.0
+2,513.7
+44,936.8
+4,036.8
+Indian Railway Finance Corporation Ltd - 8/8.15% Bonds of
+*1,000 each fully paid maturing on February 23, 2022
+343.2
+1,251.7
+195.1
+1,999
+345,622
+<<210
+Aggregate carrying value of unquoted investments
+Generic Solar Power LLP [7,777 (March 31, 2019:
+*11,568)]
+Trumpcard Advisors and Finvest LLP
+Investments in limited liability partnership
+Tarsius Pharma Ltd
+Medinstill LLC
+Investments in equity instruments
+Unquoted, fully paid
+(Carrying amount determined using equity method of
+accounting)
+* in Million
+As at March 31, 2019
+Quantity
+* in Million
+As at March 31, 2020
+Quantity
+NOTE: 4 INVESTMENT IN ASSOCIATES (NON-CURRENT)
+^ Refer note 75
+The aggregate amortisation has been included under depreciation and amortisation expense in the consolidated statement of profit and loss.
+* Refer note 54
+Other intangible assets consisting of trademarks, brands acquired, research and development, designs, technical know-how, licences,
+non-compete fees and other intangible assets are available to the Group in perpetuity. The amortisable amount of intangible assets is
+arrived at, based on the management's best estimates of useful lives of such assets after due consideration as regards their expected usage,
+the product life cycles, technical and technological obsolescence, market demand for products, competition and their expected future
+benefits to the Group.
+(d)
+(c)
+For details of assets pledged as security refer note 66.
+(b)
+57,980.2
+56,793.6
+1,186.6
+58,533.5
+57,445.2
+1,999
+345,622
+1,088.3
+1,389.2
+195.2
+0.0
+262.0
+262.0
+15,853
+275.7
+275.7
+15,853
+in Million
+As at March 31, 2019
+Quantity
+* in Million
+As at March 31, 2020
+Quantity
+Annual Report 2019-20
+Quoted - At fair value through other comprehensive
+income
+In equity instruments
+NOTE: 6 INVESTMENTS (NON-CURRENT)
+Aggregate carrying value of unquoted investments
+Artes Biotechnology GmbH
+Investments in equity instruments
+Unquoted, fully paid
+accounting)
+(Carrying amount determined using equity method of
+NOTE: 5 INVESTMENT IN JOINT VENTURE (NON-CURRENT)
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+2,163.4
+2,163.4
+0.0
+579.0
+2,153.9
+2,153.9
+707.1
+(121.2)
+(96.7)
+41,613.4
+1,909.3
+Taken over on acquisition^
+Consolidation adjustments
+As at March 31, 2019
+Eliminated on disposals of assets
+Amortisation expense
+Taken over on acquisition^
+Consolidation adjustments
+As at April 01, 2018
+Accumulated amortisation and impairment
+Total
+Trademarks and
+Designs
+Software
+Computer
+* In Million
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+Financial Statements
+209 >>
+101,502.9
+98,407.0
+3,095.9
+As at March 31, 2020
+(155.8)
+(129.8)
+(26.0)
+Eliminated on disposals of assets
+4,401.8
+3,867.6
+Amortisation expense
+Impairment losses recognised in profit or loss
+Eliminated on disposals of assets
+As at March 31, 2020
+(24.5)
+0.1
+0.1
+9,605.3
+9,162.3
+443.0
+2,814.0
+2,768.2
+45.8
+31,224.5
+29,779.6
+1,444.9
+(564.9)
+(554.7)
+275.7
+(10.2)
+6,691.1
+303.2
+1.2
+1.2
+1,006.6
+23,787.3
+22,654.1
+989.1
+1,133.2
+17.5
+Buildings include ₹8,620 (As at March 31, 2019: 8,620) towards cost of shares in a co-operative housing society and also includes *4.5
+Million (March 31, 2019: 4.5 Million) towards cost of flats not registered in the name of the Parent company but is entitled to right of
+use and occupancy.
+(a)
+Footnotes:
+As at March 31, 2020
+As at March 31, 2019
+Net book value
+6,994.3
+262.0
+As at March 31, 2019
+As at March 31, 2020
+Quantity
+Quoted - At fair value through other comprehensive
+income
+National savings certificates [*10,000 (March 31, 2019:
+*10,000)]
+Unquoted - At amortised cost
+Bond of *1 each fully paid maturing February 21, 2028
+In government securities
+Bond of 1 each fully paid maturing March 07, 2030
+8.24% Government of Tamil Nadu UDAY 2028
+Bond of *1 each fully paid maturing March 22, 2028
+8.11% Government of Chhattisgarh SDL 2028
+Bond of 1 each fully paid maturing January 31, 2028
+8.29% Government of West Bengal SDL 2028
+7.62% Government of Telangana UDAY 2026
+Bond of *1 each fully paid maturing March 07, 2026
+7.98% Government of Telangana UDAY 2030
+Bond of 1 each fully paid maturing June 23, 2020
+8.01% Government of Rajasthan UDAY 2020
+Quoted - At fair value through other comprehensive
+income
+In government securities
+Quoted - At fair value through Profit and Loss
+Others
+In equity instruments
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+Financial Statements
+211 >>>
+177.9
+(177.9)
+71.9
+5.8
+Others
+(194.3)
+Less: Impairment in value of investment
+38,894
+194.3
+38,894
+Reanal Finomvegyszergyar Zrt.
+(0.5)
+(0.5)
+Less: Impairment in value of investment
+Others *
+As at March 31, 2020
+Quantity
+* in Million
+142,393
+148.9
+142,393
+Power Finance Corporation Ltd (Series I) - 8.2% Bonds of
+*1,000 each fully paid maturing on February 01, 2022
+64.6
+61,809
+64.3
+61,809
+National Highways Authority of India - 8.2% Bonds of *1,000
+each fully paid of maturing on January 25, 2022
+Quoted - At fair value through other comprehensive
+income
+In debentures/bonds
+20,973.0
+0.0
+51.4
+Shares of 10 each fully paid
+50,000,000
+200,000,000
+50.8
+50,000,000
+100.1
+100,000,000
+98.4
+100,000,000
+27.1
+27,400,000
+34,218.0
+0.0
+452.6
+* in Million
+As at March 31, 2019
+Quantity
+202.2
+534.2
+0.5
+(934.0)
+53.5
+48,265
+Crinetics Pharmaceuticals Inc.
+449.3
+2,167,679
+1,210.0
+2,167,679
+scPharmaceuticals Inc.
+Shares of US$0.00001 each fully paid
+2,077.8
+914,107
+2,981.5
+914,107
+Krystal biotech, Inc.
+Shares of 10 each fully paid
+120.2
+1,050,000
+81.6
+1,050,000
+Krebs Biochemicals and Industries Limited
+Shares of US$0.01 each fully paid
+2,808.4
+2,868,623
+753.0
+2,868,623
+Amneal Pharmaceuticals Inc.
+* in Million
+Quantity
+* in Million
+Shares of US$0.001 each
+Crispr Therapeutics AG
+Shares of CHF 0.03 each
+Magneta Therapeutics Inc.
+Shares of US$0.001 each
+(934.0)
+0.5
+50,000
+Biotech Consortium India Limited
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+934.0
+9,340,000
+934.0
+9,340,000
+Shimal Research Laboratories Limited
+Unquoted - At fair value through Profit and Loss
+In equity instruments
+Shares of US$0.0001 each
+Avrobio Inc.
+50,000
+Shares of US$0.001 each
+37,306
+17.4
+10,905
+18.9
+8,352
+16.9
+22,498
+12.3
+25,900
+194.4
+60,755
+Akero Therapeutics Inc.
+Lovance Biotherapeutics Inc.
+Replimune Group Inc.
+Shares of US$0.001 each
+43.8
+Additions
+43,522.7
+7,444.4
+From banks (unsecured)
+Term loans
+Effective portion of cash flow hedges - The cash flow
+hedging reserve represents the cumulative effective
+portion of gain or loss arising on changes in fair value of
+designated portion of hedging instruments entered into for
+cash flow hedges. The cumulative gain or loss arising on the
+changes of the fair value of the designated portion of the
+hedging instruments that are recognised and accumulated
+under the cash flow hedges reserve will be reclassified to
+profit or loss only when the hedged transaction affects the
+profit or loss, or included as a basis adjustment to the non-
+financial hedged item.
+income and accumulated in foreign currency translation
+reserve. Exchange difference in the foreign currency
+translation reserve are reclassified to consolidated profit or
+loss on the disposal of the foreign operation.
+Foreign currency translation reserve - Exchange
+differences relating to the translation of the results and
+net assets of the Group's foreign operations from their
+functional currencies to the Group's presentation currency
+(i.e.) are recognised directly in the other comprehensive
+NOTE : 21 BORROWINGS (NON-CURRENT)
+Equity instrument through OCI - The Group has elected to
+recognise changes in the fair value of certain investment
+in equity instrument in other comprehensive income.
+This amount will be reclassified to retained earnings on
+derecognition of equity instrument.
+Debt instrument through OCI - This represents the
+cumulative gain and loss arising on fair valuation of debt
+instruments measured through other comprehensive
+income. This amount will be reclassified to profit or loss
+account on derecognition of debt instrument.
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+Financial Statements
+217 >>
+General reserve: The reserve arises on transfer portion
+of the net profit pursuant to the earlier provisions of
+Companies Act, 1956. Mandatory transfer to general
+reserve is not required under the Companies Act, 2013.
+In compliance with local laws of overseas subsidiaries, the
+reserve has been transferred from retained earnings.
+Legal reserve - The reserve has been created
+by an overseas subsidiaries in compliance with
+requirements of local laws.
+Capital redemption reserve - The Group has recognised
+capital redemption reserve on buyback of equity
+shares from its retained earnings. The amount in capital
+redemption reserve is equal to nominal amount of the
+equity shares bought back.
+Amalgamation reserve - The reserve was created pursuant
+to scheme of amalgamation in earlier years.
+336.6
+411,691.3
+(429.2)
+450,245.2
+24,936.7
+45,799.0
+(11.2)
+1,632.9
+(533.6)
+749.9
+35,621.0
+333,301.9
+353,200.5
+35,621.0
+207.5
+7.5
+230.5
+43.8
+43.8
+From department of biotechnology (secured)
+Lease liabilities (Refer note 54)
+Deferred payment liabilities (unsecured - at amortised cost)
+Refer note 66 for borrowings (non-current).
+March 31, 2020
+As at
+* in Million
+30.6
+4.5
+424.1
+20.4
+6.4
+413.2
+10.2
+March 31, 2019
+* in Million
+As at
+As at
+March 31, 2020
+15,226.1
+20,289.2
+3.7
+3,681.7
+11,874.1
+997.4
+97.3
+14,127.7
+17,714.3
+61.8
+* in Million
+As at
+March 31, 2019
+As at
+March 31, 2020
+218
+Others (Refer note 60)
+Employee benefits
+NOTE : 23 PROVISIONS (NON-CURRENT)
+Other financial liabilities
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Interest accrued
+NOTE : 22 OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+2,513.1
+As at
+March 31, 2019
+7.5
+Debenture redemption reserve - The Group is required
+to create a debenture redemption reserve out of the
+profits which are available for payment of dividend. This
+reserve has been transferred to retained earnings on
+redemption of debentures.
+5,990,100,000
+100,000
+5,990,000,000
+in Million
+As at March 31, 2019
+Number of shares
+in Million
+Number of shares
+As at March 31, 2020
+Annual Report 2019-20
+NOTE : 20 OTHER EQUITY
+Equity shares of 1 each (Refer note 41)
+Issued, subscribed and fully paid up
+Cumulative preference shares of *100 each
+Equity shares of *1 each
+Authorised
+NOTE: 19 EQUITY SHARE CAPITAL
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+K216
+18,953.0
+* Includes balances of goods and service tax.
+548.4
+20,456.4
+974.3
+11,101.2
+8,738.4
+(355.5)
+(343.2)
+355.5
+5,990.0
+10.0
+6,000.0
+5,990,000,000
+100,000
+5,990.0
+10.0
+Securities premium - The amount received in excess of
+face value of the equity shares is recognised in securities
+premium. In case of equity-settled share based payment
+transactions, the difference between fair value on grant
+date and nominal value of share is accounted as securities
+premium. It is utilised in accordance with the provisions of
+the Companies Act, 2013.
+Capital reserve - During amalgamation / merger /
+acquisition, the excess of net assets taken, over the
+consideration paid, if any, is treated as capital reserve.
+Nature and purpose of each reserve
+Refer statement of changes in equity for detailed movement in other equity balances.
+Total reserves and surplus
+Effective portion of cash flow hedges
+Equity instrument through other comprehensive income
+Foreign currency translation reserve
+Debt instrument through other comprehensive income
+B) Items of other comprehensive income (OCI)
+Retained earnings
+General reserve
+Legal reserve
+Capital redemption reserve
+Amalgamation reserve
+7,498.9
+Debenture redemption reserve
+Capital reserve
+A) Reserves and surplus
+As at
+March 31, 2019
+As at
+March 31, 2020
+* in Million
+2,399.3
+2,399,334,970
+2,399.3
+2,399.3
+2,399,334,970
+2,399.3
+2,399,334,970
+2,399,334,970
+6,000.0
+5,990,100,000
+Securities premium
+2,950.2
+3,681.7
+11,932.9
+2,159.8
+2,251.3
+As at March 31, 2020
+Net book value
+1,493.3
+13.0
+680.0
+2.2
+0.9
+439.4
+357.8
+As at March 31, 2020
+assets
+995.7
+(1,100.7)
+(25.3)
+(227.1)
+(848.3)
+Eliminated on disposals of
+28.6
+501.4
+0.9
+0.4
+431.9
+32.5
+Depreciation expense
+84.3
+1.0
+37.5
+0.2
+0.1
+1,625.5
+4.4
+1,448.9
+25.2
+2,358.3
+54.5
+89,758.0
+87,224.8
+2,533.2
+Consolidation adjustments
+Taken over on acquisition^
+As at March 31, 2019
+(733.3)
+(723.0)
+(10.3)
+Eliminated on disposals of assets
+23,015.5
+22,251.6
+763.9
+22.8
+Additions
+64,656.5
+62,902.9
+2,793.3
+1,753.6
+21.6
+4.4
+Taken over on acquisition^
+As at April 01, 2018
+Consolidation adjustments
+At cost or deemed cost
+Total
+Trademarks and
+Designs
+Computer
+Software
+In Million
+Other than internally generated
+NOTE: 3B OTHER INTANGIBLE ASSETS
+(i) For details of Ind AS 116 disclosure refer note 54.
+5,363.5
+2,814.9
+4.4
+22.7
+8.2
+Total
+0.8
+84.5
+35.1
+Consolidation adjustments
+110.1
+1,358.5
+2.7
+8.3
+892.9
+2,355.5
+As at March 31, 2019
+Reclassified from Property,
+plant and equipment
+At cost or deemed cost
+Office
+equipment
+Vehicles
+Furniture and
+fixtures
+Plant and
+equipment
+Buildings
+Leasehold land
+* in Million
+Annual Report 2019-20
+NOTE: 3A(II) RIGHT OF USE ASSETS
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+149.0
+4,303.9
+5,110.0
+Consolidation adjustments
+1,945.6
+0.5
+183.6
+4,728.0
+impairment
+plant and equipment
+1,514.0
+8.7
+368.2
+1.1
+0.4
+833.0
+302.6
+Reclassified from Property,
+As at March 31, 2019
+8.6
+depreciation and
+Accumulated
+313.1
+3,280.4
+(1,464.7)
+6,856.8
+2,128.9
+38.2
+Disposals
+9.1
+2,064.9
+2,609.1
+As at March 31, 2020
+(80.5)
+(450.9)
+(933.3)
+6.6
+Additions
+1,037.7
+3.4
+2,020.8
+218.5
+As at
+Revenue from contracts with customers (Refer notes 53 and 63)
+Other operating revenues
+NOTE: 30 REVENUE FROM OPERATIONS
+March 31, 2020
+NOTE: 31 OTHER INCOME
+5,041.7
+As at
+March 31, 2020
+2,020.3
+2,020.3
+39,701.8
+* in Million
+As at
+March 31, 2019
+4,279.9
+25,043.4
+29,323.3
+Provision for income tax [Net of advance income tax]
+34,660.1
+NOTE : 29 CURRENT TAX LIABILITIES (NET)
+246.7
+Employee benefits
+Others
+* in Million
+As at
+March 31, 2020
+4,158.8
+526.8
+1,717.2
+* in Million
+As at
+March 31, 2019
+4,348.3
+693.7
+2,206.5
+Others (Refer note 60)
+60.1
+6,462.9
+219 >>
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+NOTE : 28 PROVISIONS (CURRENT)
+95.5
+7,344.0
+As at
+March 31, 2019
+223.8
+Year ended
+Deferred revenue (Refer note 53)
+Net gain on sale of financial assets measured at fair value through profit or loss
+561.8
+Dividend income on investments
+6,692.1
+3,546.2
+692.7
+275.8
+Others (includes interest on income tax refund)
+1,555.4
+205.3
+Other financial assets carried at amortised cost
+1,546.4
+1,749.1
+1,269.4
+1,269.4
+Investments in debt instruments at fair value through other comprehensive income
+137.9
+Loans at amortised cost
+1,486.1
+1,178.1
+Bank deposits at amortised cost
+Interest income on:
+Year ended
+March 31, 2019
+* in Million
+Year ended
+March 31, 2020
+286,862.8
+3,796.3
+290,659.1
+Year ended
+March 31, 2019
+* in Million
+323,251.7
+5,123.3
+328,375.0
+March 31, 2020
+1,411.5
+Advance from customers
+for the year ended March 31, 2020
+NOTE : 27 OTHER CURRENT LIABILITIES
+216.0
+7,808.7
+5,587.7
+7,592.7
+March 31, 2019
+As at
+As at
+March 31, 2020
+* in Million
+Annual Report 2019-20
+Others*
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+Interest accrued
+Current maturities of finance lease obligations (Refer note 54)
+Current maturities of long-term debt (Refer note 66)
+180.3
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+NOTE : 24 OTHER NON-CURRENT LIABILITIES
+Deferred revenue (Refer note 53)
+Others
+124.8
+5,712.5
+NOTE : 25 BORROWINGS (CURRENT)
+From banks (unsecured)
+Other loans
+From banks (unsecured)
+Commercial paper (unsecured)
+Refer note 67 for borrowings (current).
+NOTE : 26 OTHER FINANCIAL LIABILITIES (CURRENT)
+Loans repayable on demand
+Statutory remittances
+As at
+25,326.9
+* Includes claims, recall charges, contractual and expected milestone obligations, trade and other commitments.
+1,848.0
+10,273.2
+2,966.1
+12,448.2
+123.9
+13.0
+267.5
+971.5
+1,221.9
+808.5
+126.6
+152.2
+93.9
+77.2
+381.5
+93.9
+349.0
+927.2
+in Million
+As at
+March 31, 2019
+30,750.8
+20,255.9
+36,079.1
+9,911.0
+March 31, 2020
+16,877.7
+83,707.6
+* in Million
+As at
+March 31, 2020
+As at
+March 31, 2019
+6,438.6
+5,860.9
+55,493.8
+Net gain/(loss) on sale of financial assets measured at fair value through other comprehensive
+income
+7
+(0.1)
+Annual Report 2019-20
+80 Terapia SA
+81
+AO Ranbaxy
+82 Ranbaxy South Africa (Pty) Ltd
+83 Ranbaxy Pharmaceuticals (Pty) Ltd
+Country of Incorporation
+Romania
+Russia
+Proportion of ownership interest
+for the year ended
+March 31, 2020
+for the year ended March 31, 2020
+March 31, 2019
+96.81%
+100.00%
+100.00%
+South Africa
+100.00%
+100.00%
+South Africa
+100.00%
+100.00%
+84 Be-Tabs Investments (Pty) Ltd
+96.81%
+South Africa
+Notes to the Consolidated Financial Statements
+224
+Germany
+100.00%
+100.00%
+75 Ranbaxy GmbH
+Germany
+(Refer note g)
+76 Ranbaxy Ireland Limited
+Ireland
+100.00%
+100.00%
+The Transformation Journey
+0.4
+100.00%
+100.00%
+78 Sun Pharmaceutical Industries S.A.C.
+Peru
+100.00%
+100.00%
+79 Ranbaxy (Poland) SP. Z O.O.
+Poland
+100.00%
+100.00%
+Italy
+(Refer note o)
+85 Sonke Pharmaceuticals Proprietary Limited
+South Africa
+100.00%
+100.00%
+93 Ranbaxy Signature LLC
+United States of America
+67.50%
+67.50%
+94 Sun Pharmaceuticals Morocco LLC
+95 "Ranbaxy Pharmaceuticals Ukraine❞ LLC
+Morocco
+Ukraine
+100.00%
+United States of America
+100.00%
+100.00%
+96 Insite Vision Incorporated
+United States of America
+100.00%
+100.00%
+97 Sun Pharmaceutical Medicare Limited
+98 JSC Biosintez
+India
+Russia
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+70.00%
+70.00%
+86 Sun Pharma Laboratorios,S.L.U. (Formerly known as
+Spain
+100.00%
+100.00%
+Laboratorios Ranbaxy, S.L.U.)
+87 Ranbaxy (U.K.) Limited
+United Kingdom
+100.00%
+100.00%
+88 Ranbaxy Holdings (U.K.) Limited
+United Kingdom
+100.00%
+100.00%
+89 Ranbaxy Europe Limited
+90 Ranbaxy Inc.
+91 Ranbaxy (Thailand) Co., Ltd.
+92 Ohm Laboratories, Inc.
+United Kingdom
+(Refer note k)
+United States of America
+Thailand
+100.00%
+74 Basics GmbH
+96.96%
+100.00%
+France
+(Refer note I)
+United States of America
+77.10%
+76.54%
+54 One Commerce Drive LLC
+United States of America
+77.10%
+76.54%
+55 Taro Pharmaceutical Laboratories Inc.
+United States of America
+United Kingdom
+77.10%
+56 Taro Pharmaceuticals Canada, Ltd.
+Canada
+(Refer note h)
+57 Alkaloida Sweden AB
+58 Dusa Pharmaceuticals, Inc.
+Sweden
+(Refer note m)
+59 Mutual Pharmaceutical Company Inc.
+60 Dungan Mutual Associates, LLC
+United States of America
+United States of America
+United States of America
+76.54%
+100.00%
+100.00%
+76.54%
+Israel
+46 Taro Pharmaceuticals Inc.
+Canada
+77.10%
+76.54%
+47 Taro Pharmaceuticals U.S.A., Inc.
+United States of America
+77.10%
+76.54%
+48 Taro Pharmaceuticals North America, Inc.
+Cayman Islands, British West Indies
+77.10%
+77.10%
+49 Taro Pharmaceuticals Europe B.V.
+50 Taro Pharmaceuticals Ireland Ltd
+51 Taro International Ltd.
+52 Taro Pharmaceuticals (UK) Ltd.
+53 3 Skyline LLC
+Netherlands
+77.10%
+76.54%
+Ireland
+(Refer note i)
+76.54%
+100.00%
+100.00%
+100.00%
+100.00%
+Australia
+100.00%
+100.00%
+69
+Ranbaxy Farmaceutica Ltda.
+Brazil
+100.00%
+100.00%
+70 Sun Pharma Canada Inc.
+100.00%
+Canada
+100.00%
+71 Sun Pharma Egypt Limited LLC
+Egypt
+100.00%
+100.00%
+72 Rexcel Egypt LLC
+Egypt
+100.00%
+100.00%
+73 Office Pharmaceutique Industriel Et Hospitalier
+100.00%
+United States of America
+100.00%
+100.00%
+(Refer note u)
+61 URL PharmPro, LLC
+United States of America
+100.00%
+(Refer note u)
+62 2 Independence Way LLC
+United States of America
+100.00%
+100.00%
+63 Universal Enterprises Private Limited
+64 Sun Pharma Switzerland Ltd.
+Pharmalucence, Inc.
+67 PI Real Estate Ventures, LLC
+68 Sun Pharma ANZ Pty Ltd
+65 Sun Pharma East Africa Limited
+66
+India
+Switzerland
+Kenya
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+United States of America
+100.00%
+99 Sun Pharmaceuticals Holdings USA, Inc.
+100 Zenotech Laboratories Nigeria Limited
+101 Zenotech Inc
+102 Zenotech Farmaceutica Do Brasil Ltda
+With effect from April 01, 2018 Taro Pharmaceuticals
+Canada, Ltd. has been merged with Taro
+Pharmaceuticals Inc.
+W
+i
+j
+With effect from April 19, 2018 Taro Pharmaceuticals
+Ireland Ltd. has been dissolved.
+With effect from May 20, 2018 Sun Pharmaceuticals
+UK Limited has been dissolved.
+k
+With effect from August 22, 2018 Ranbaxy Europe
+Limited has been dissolved.
+|
+With effect from September 21, 2018 Taro Pharmaceuticals
+(UK) Limited has been dissolved.
+h
+With effect from February 27, 2020 Sun Global
+Development FZE has been dissolved.
+With effect from March 27, 2020 Morley &
+Company, Inc has been merged with The Taro
+Development Corporation
+Significant Accounting Policies and other Notes to
+these Consolidated Financial Statements are intended
+to serve as a means of informative disclosure and a
+guide for better understanding of the consolidated
+position of the Group. Recognising this purpose,
+the Group has disclosed only such policies and
+notes from the individual financial statements
+which fairly represent the needed disclosures. Lack
+of homogeneity and other similar considerations
+made it desirable to exclude some of them, which
+in the opinion of the management, could be
+better viewed when referred from the individual
+financial statements.
+226
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+NOTE: 39 CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
+A) Contingent liabilities
+I) Claims against the Group not acknowledged as debts
+II) Liabilities disputed - appeals filed with respect to:
+With effect from March 16, 2020 Dungan Mutual
+Associates, LLC and URL Pharm Pro, LLC has been
+merged with Mutual Pharmaceutical Company Inc.
+Income tax on account of disallowances / additions (Company appeals)*
+V
+g
+In respect of entities at Sr. Nos. 3 to 6, 41, 81, 95, 96,
+98, 106, 107, 110 and from 114 to 122 the reporting
+date is as of December 31, 2019 and different from
+the reporting date of the Parent Company.
+m
+With effect from September 25, 2018 Alkaloida
+Sweden AB has been sold.
+n
+With effect from March 04, 2019 Sun Pharmaceuticals
+Italia S.R.L. has been dissolved.
+e
+In respect of entitiy at Sr. No. 105 and 122 has been
+incorporated during the year ended March 31, 2020.
+Foundation for Disease Elimination and Control of
+India (FDEC), a wholly owned subsidiary incorporated
+in India on September 21, 2016 by the Company
+as part of its Corporate Social Responsibility (CSR)
+initiative. FDEC has entered into an MOU with Indian
+Council of Medical Research (ICMR) and Madhya
+Pradesh State Government to undertake the Mandla
+Malaria Elimination Demonstration Project with a goal
+to eliminate Malaria in the state. FDEC is a Section 8
+company not considered for consolidation since it can
+apply its income for charitable purposes only and can
+raise funds/contribution independently.
+O
+With effect from March 25, 2019 Be-Tabs Investments
+(Pty) Ltd has been dissolved.
+With effect from April 01, 2018 Ranbaxy GmbH has
+been merged with Basics GmbH.
+р
+q
+With effect from July 15, 2019 Zenotech Laboratories
+Nigeria Limited has been dissolved.
+r
+With effect from January 01, 2020 Pola Pharma Inc.
+has been merged with Sun Pharma Japan Ltd.
+S
+With effect from January 28, 2020 Sun Pharma
+Healthcare FZE has been dissolved.
+u
+f
+Books of accounts and other related records/
+documents of the overseas subsidiaries of the
+Zenotech Laboratories Limited were missing and
+due to non-availability of those records/information,
+Zenotech Laboratories Limited is unable to prepare
+consolidated accounts.
+t
+With effect from January 25, 2019 Sun Global Canada
+Pty. Ltd. has been dissolved.
+Sales tax on account of rebate / classification
+Excise duty / service tax on account of valuation / cenvat credit
+ESIC contribution on account of applicability
+SPIINC, along with more than 35 other pharmaceutical
+companies and individuals, is named as a defendant
+in lawsuits brought by several putative classes, state
+Attorneys General and individual company purchasers
+and payors. Each of these cases has been transferred
+to the United States District Court for the Eastern
+District of Pennsylvania for coordinated pre-trial
+proceedings. The cases are now in discovery. The
+227 >>
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Note:
+Court has sequenced the lawsuits into separate
+groups for purposes of further proceedings,
+identifying certain "bellwether" cases that will
+proceed before other cases advance. SPIINC is not a
+named defendant in any of the bellwether cases. Sun
+Pharmaceutical Industries Ltd. has not been named as
+a defendant in any of these litigations.
+On September 8, 2016, another U.S. subsidiary of
+the Company, Taro Pharmaceuticals U.S.A., Inc.
+("Taro U.S.A.") received a grand jury subpoena
+from the U.S. Department of Justice, Antitrust
+Division, seeking documents relating to generic
+pharmaceutical products and pricing, communications
+with competitors, and certain other related matters.
+Several then-current and former Taro U.S.A.
+executives received subpoenas as well. Taro U.S.A is in
+the process of providing documents and information
+related to the products. Taro U.S.A. and certain
+then-current and former executives have continued
+cooperation and communication with the Antitrust
+Division. On February 4, 2020, a former member of
+Taro U.S.A's commercial team was indicted for alleged
+violation of U.S antitrust laws.
+On April 30, 2018, Taro U.S.A. received a Civil
+Investigative Demand ("CID") from the U.S.
+Department of Justice, Civil Division, pursuant to
+the False Claims Act seeking information relating
+to generic pharmaceutical products and pricing,
+communications with competitors, and certain
+other related matters. Taro U.S.A is in the process of
+providing certain information to the Civil Division.
+Taro U.S.A.'s parent company, Taro Pharmaceutical
+Industries Ltd. ("Taro Industries"), was not
+subject to the CID.
+On April 30, 2018, SPIINC received a Civil
+Investigative Demand ("CID") from the U.S.
+Department of Justice, Civil Division, pursuant to
+the False Claims Act seeking information relating
+to generic pharmaceutical products and pricing,
+communications with competitors, and certain
+other related matters. In response to the CID,
+SPIINC provided certain materials to the Civil
+Division in 2018. The Civil Division has not asked
+for any additional information from SPIINC, or
+communicated with SPIINC, about the CID since that
+time. Sun Pharmaceutical Industries Ltd. was not
+subject to the CID.
+Taro U.S.A. and Taro Industries, along with more than
+35 other pharmaceutical companies and individuals,
+are named as defendants in lawsuits brought by
+several putative classes, state Attorneys General
+("AG") and individual company purchasers and payors.
+Each of these cases has been transferred to the
+United States District Court for the Eastern District
+of Pennsylvania for coordinated pre-trial proceedings.
+The cases are now in discovery. The Court has
+sequenced the lawsuits into separate groups for
+purposes of further proceedings, identifying certain
+"bellwether" cases that will proceed before other
+Speakes Vs Taro Pharmaceutical Industries Limited:
+One US subsidiary and two of its former officers are
+named as defendants in a putative shareholder class
+action pending in the United States District Court for
+the Southern District of New York and which asserts
+claims under Section 10(b) of the Securities Exchange
+Act of 1934 (the "Exchange Act") against all defendants
+and Section 20(a) of the Exchange Act against the
+individual defendants. It generally alleges that the
+defendants made material misstatements and omissions
+in connection with an alleged conspiracy to fix drug
+prices. On September 24, 2018, the Court granted
+in part and denied in part the Company's motion to
+dismiss. The case is proceeding with limited discovery.
+Antitrust - Modafinil:
+The Group was a defendant in a number of putative
+class action lawsuits and individual actions brought
+by purchasers and payors, as well as a generic
+manufacturer, in US alleging that the Company and
+its affiliates violated antitrust laws in connection with
+a 2005 patent settlement agreement with Cephalon
+concerning Modafinil. The cases were transferred
+to the United States District Court for the Eastern
+District of Pennsylvania for coordinated proceedings,
+subsequently the Company has reached settlements
+in these coordinated proceedings.
+Antitrust - Lipitor:
+The Group is a defendant in a number of putative
+class action lawsuits and individual actions brought
+by purchasers and payors in US alleging that the
+Company and its affiliates violated antitrust laws in
+connection with a 2008 patent settlement agreement
+with Pfizer concerning Atorvastatin. The cases
+have been transferred to the United States District
+Court for the District of New Jersey for coordinated
+proceedings. The cases are proceeding in discovery.
+Antitrust - In re Ranbaxy Generic Drug Application Antitrust
+Litigation:
+The Group is a defendant in a number of putative
+class action lawsuits and individual actions brought
+by purchasers and payors in US alleging that the
+Company and its affiliates violated antitrust laws and
+the Racketeer Influenced and Corrupt Organizations
+Act, with respect to its ANDAs for Valganciclovir,
+Valsartan and Esomeprazole. The cases have been
+transferred to the United States District Court
+for the District of Massachusetts for coordinated
+proceedings. The cases are proceeding in discovery.
+Future cash outflows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities.
+*Income tax matters where department has preferred an appeal against favourable order received by the Company amounted to *38,959.0 Million
+(March 31, 2019: ₹19,477.2 Million). These matters are sub-judice in various forums and pertains to various financial years.
+228
+cases advance. A scheduling order for the bellwether
+cases has not yet been set.
+On April 1, 2016, a U.S. subsidiary of the Company,
+Sun Pharmaceutical Industries, Inc. ("SPIINC"),
+received a grand jury subpoena from the U.S.
+Department of Justice, Antitrust Division, seeking
+documents relating to generic pharmaceutical
+products and pricing, communications with
+competitors, and certain other related matters. On or
+before November 2017, SPIINC provided documents
+and information related to the three products that
+were of interest to the Antitrust Division. The
+Antitrust Division has not asked for any additional
+information from SPIINC, or communicated with
+SPIINC, about its subpoena since that time. Sun
+Pharmaceutical Industries Ltd. was not subject to this
+grand jury subpoena.
+89.3
+89.8
+Annual Report 2019-20
+As at
+March 31, 2020
+* in Million
+As at
+March 31, 2019
+728.9
+806.4
+41,026.6
+115.3
+1,005.7
+39,384.6
+118.9
+1,939.0
+130.5
+130.5
+3,488.2
+3,488.2
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit,
+enjoyed by the Group
+Fine imposed for anti-competitive settlement agreement by European Commission
+Octroi demand on account of rate difference
+Antitrust - Gx Drug Price Fixing:
+Other matters - state electricity board, Punjab Land Preservation Act related matters etc.
+Note: Includes, interest till the date of demand, wherever applicable.
+The group has made provision on prospective basis to give
+impact of Provident fund judgement by Hon'ble Supreme
+Court of India (SC) dated February 28, 2019. The Group will
+update its provision, on receiving further clarity.
+III) Legal proceedings:
+The Company and / or its subsidiaries are involved
+in various legal proceedings including product
+liability, contracts, employment claims, anti-trust
+and other regulatory matters relating to conduct of
+its business. Some of the key matters are discussed
+below. Most of the legal proceedings involve complex
+issues, which are specific to the case and don't have
+precedents and hence for a majority of these claims,
+it is not possible to make a reasonable estimate of
+the expected financial effect, if any, that will result
+from ultimate resolution of the proceedings. This
+is due to a number of factors, including: the stage
+of the proceedings and the overall length and the
+discovery process; the entitlement of the parties to an
+action to appeal a decision; the extent of the claims,
+including the size of any potential class, particularly
+when damages are not specified or are indeterminate;
+the possible need for further legal proceedings to
+establish the appropriate amount of damages, if
+any; the settlement posture of the other parties to
+the litigation and any other factors that may have a
+material effect on the litigation. The Company makes
+its assessment of likely outcome, based on the views
+of internal legal counsel and in consultation with
+external legal counsel representing the Company. The
+Company also believes that disclosure of the amount
+sought by plaintiffs, would not be meaningful because
+historical evidence indicates that the amounts settled
+(if any) are significantly different than those claimed
+by plaintiffs. Some of the legal claims against the
+Company, if decided against the Company may result
+into significant impact on its results of operations of a
+given period during which the claim is settled.
+856.1
+799.5
+171.0
+171.0
+с
+Beneficial ownership
+76.54%
+84.36%
+100.00%
+100.00%
+Germany
+45.00%
+45.00%
+United States of America
+19.99%
+19.99%
+India
+28.76%
+100.00%
+28.76%
+40.61%
+40.61%
+Israel
+17.78%
+18.33%
+Name of Subsidiary of Associates
+111 Composite Power Generation LLP
+112 Vintage Power Generation LLP
+113 Vento Power Generation LLP
+India
+36.90%
+India
+100.00%
+100.00%
+38.21%
+(Refer note f)
+103 Kayaku Co., Ltd.
+104 Sun Pharma Distributors Limited
+105 Realstone Infra Limited
+Name of Joint Venture Entity
+106 Artes Biotechnology GmbH
+Name of Associates
+107 Medinstill LLC
+108 Generic Solar Power LLP
+109 Trumpcard Advisors and Finvest LLP
+110 Tarsius Pharma Ltd.
+United States of America
+United States of America
+100.00%
+100.00%
+Nigeria
+57.50%
+(Refer note q & f)
+Brazil
+Japan
+India
+India
+57.56%
+(Refer note f)
+38.21%
+(Refer note f)
+(Refer note f)
+57.56%
+(Refer note f)
+36.90%
+76.54%
+India
+39.41%
+120 Intact Pharmaceuticals LLC
+United States of America
+19.99%
+19.99%
+121 Intact Media LLC (Formerly known as Intact Skin Care
+United States of America
+19.99%
+19.99%
+LLC)
+122 Intact Solutions LLC
+19.99%
+United States of America
+225 »
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+b
+Following are the details of the Group's holding in Taro:
+Voting power
+March 31, 2020
+84.73%
+77.10%
+March 31, 2019
+19.99%
+19.99%
+United States of America
+119 ALPS LLC
+India
+40.55%
+40.55%
+114 HRE LLC
+115 HRE II LLC
+116 HRE III LLC
+United States of America
+19.99%
+19.99%
+United States of America
+19.99%
+19.99%
+United States of America
+19.99%
+19.99%
+117 Dr. Py Institute LLC
+United States of America
+19.99%
+19.99%
+118 Medinstill Development LLC
+United States of America
+19.99%
+19.99%
+39.41%
+77.10%
+77 Ranbaxy Italia S.P.A.
+45 Taro Pharmaceutical Industries Ltd. (Taro)
+Communication
+959.3
+5,426.1
+5,154.3
+838.2
+Provision/write off/(reversal) for doubtful trade receivables/advances
+1,068.1
+(339.4)
+Professional, legal and consultancy
+19,083.8
+14,372.7
+5,722.4
+Donations
+238.9
+Loss on sale/write off of property, plant and equipment and other intangible assets, net
+86.9
+693.9
+Payment to auditors (net of input credit, wherever applicable)
+273.8
+260.6
+Impairment of property, plant and equipment, goodwill and other intangible assets
+Miscellaneous expenses
+1.5
+12.9
+635.4
+7,841.0
+Freight outward and handling charges
+Travelling and conveyance
+* in Million
+Year ended
+March 31, 2019
+6,227.3
+7,026.5
+6,180.9
+6,671.4
+6,218.9
+6,136.0
+362.4
+1,327.6
+5,579.8
+4,704.6
+1,965.2
+1,492.6
+28,696.5
+19,939.6
+2,125.9
+1,117.4
+4,491.8
+5,149.2
+480.0
+483.8
+3,090.4
+9,197.9
+102,705.5
+88,290.6
+1,184.6
+956.4
+29.9
+104.6
+48.7
+57.1
+465.4
+507.9
+24.8
+46.9
+334.5
+150.5
+47.9
+58.4
+7,611.5
+5,579.2
+473.6
+1,153.8
+19,251.7
+19,128.7
+13.1
+21.7
+159.3
+357.1
+3,475.9
+2,269.9
+NOTE: 37 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE CONSOLIDATED
+STATEMENT OF PROFIT AND LOSS
+Salaries, wages and bonus
+Contribution to provident and other funds
+Staff welfare expenses
+Consumption of materials, stores and spare parts
+Power and fuel
+Rates and taxes
+Rent
+Insurance
+Repairs and maintenance
+Printing and stationery
+Travelling and conveyance
+Communication
+Professional, legal and consultancy
+Miscellaneous expenses
+Less:
+Miscellaneous income
+Receipts from research activities
+222
+Year ended
+March 31, 2020
+5,941.2
+* in Million
+Year ended
+March 31, 2019
+405.3
+241.3
+6,055.5
+376.7
+262.5
+Printing and stationery
+32.4
+Repairs and maintenance
+Selling, promotion and distribution
+Inventories acquired on acquisition (Refer note 75)
+Purchases during the year
+Foreign currency translation difference
+Inventories at the end of the year
+Annual Report 2019-20
+* in Million
+Year ended
+March 31, 2020
+Year ended
+March 31, 2019
+27,837.8
+Inventories at the beginning of the year
+24,621.2
+340.6
+60,339.9
+587.8
+363.1
+(28,936.0)
+(27,837.8)
+55,152.3
+57,827.0
+NOTE: 33 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-
+PROGRESS
+Inventories at the beginning of the year
+Inventories acquired on acquisition (Refer note 75)
+55,662.7
+Foreign currency translation difference
+Raw materials and packing materials
+for the year ended March 31, 2020
+Net gain arising on financial assets measured at fair value through profit or loss
+571.9
+1,433.6
+Net gain on disposal of property, plant and equipment and other intangible assets
+Sundry balances written back, net
+Insurance claims
+Lease rental and hire charges
+Miscellaneous income
+34.7
+28.3
+52.2
+NOTE: 32 COST OF MATERIALS CONSUMED
+64.5
+156.1
+123.4
+173.1
+1,008.9
+1,303.2
+6,359.8
+10,254.9
+220
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+213.6
+Inventories at the end of the year
+NOTE: 34 EMPLOYEE BENEFITS EXPENSE
+Salaries, wages and bonus
+2,505.3
+400.2
+5,038.4
+167.4
+121.8
+300.0
+46.7
+3,027.3
+5,552.5
+221 >>>
+Financial Statements
+Year ended
+March 31, 2019
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+NOTE: 36 OTHER EXPENSES
+Consumption of materials, stores and spare parts
+Year ended
+March 31, 2020
+Conversion and other manufacturing charges
+Power and fuel
+Rent
+Rates and taxes
+Insurance
+Israel (Refer note b)
+in Million
+Year ended
+March 31, 2020
+59,670.9
+Contribution to provident and other funds*
+Staff welfare expenses
+* Includes gratuity expense of *365.6 Million (March 31, 2019: 372.8 Million)
+NOTE: 35 FINANCE COSTS
+Interest expense:
+-for financial liabilities carried at amortised cost
+-others (includes interest on income tax and lease liability)
+Exchange differences regarded as an adjustment to borrowing costs
+Unwinding of discounts on provisions
+Year ended
+March 31, 2020
+50,002.9
+* in Million
+Year ended
+March 31, 2019
+43,185.8
+1,121.8
+1,870.0
+(48,864.4)
+3,008.5
+1,364.2
+(50,002.9)
+(4,331.1)
+Year ended
+March 31, 2020
+56,392.2
+4,377.8
+2,853.5
+63,623.5
+* in Million
+Year ended
+March 31, 2019
+52,699.4
+3,944.7
+3,026.8
+Commission on sale
+49.9
+Notes to the Consolidated Financial Statements
+71.6
+100.00%
+100.00%
+United States of America
+100.00%
+100.00%
+Hungary
+99.99%
+99.99%
+United Kingdom
+(Refer note j)
+United States of America
+Australia
+100.00%
+Israel
+100.00%
+100.00%
+Netherlands
+Italy
+100.00%
+100.00%
+Germany
+France
+United Arab Emirates
+100.00%
+South Africa
+86.16%
+95.67%
+26 Sun Pharmaceuticals UK Limited
+27 Sun Pharmaceutical Industries (Australia) Pty Limited
+28 Aditya Acquisition Company Ltd.
+29 Sun Pharmaceutical Industries (Europe) B.V.
+30 Sun Pharmaceuticals Italia S.R.L.
+31 Sun Pharmaceuticals Germany GmbH
+32 Sun Pharmaceuticals France
+33 Sun Pharma Global FZE
+34 Sun Pharmaceuticals SA (Pty) Ltd
+35 Sun Global Canada Pty. Ltd.
+86.16%
+36 Sun Pharma Philippines, Inc.
+37 Sun Pharmaceuticals Korea Ltd.
+Brazil
+France
+100.00%
+100.00%
+100.00%
+100.00%
+United States of America
+100.00%
+100.00%
+Malaysia
+Nigeria
+95.67%
+38 Sun Global Development FZE
+Canada
+Philippines
+South Korea
+United Arab Emirates
+March 31, 2019
+India
+41 Pola Pharma Inc.
+Japan
+Japan
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+(Refer note r)
+42 Sun Pharma Healthcare FZE
+March 31, 2020
+United Arab Emirates
+(Refer note s)
+43 Morley & Company, Inc.
+44 Sun Laboratories FZE
+United States of America
+100.00%
+(Refer note v)
+United Arab Emirates
+100.00%
+45.5
+100.00%
+100.00%
+Proportion of ownership interest
+for the year ended
+Country of Incorporation
+Sun Pharma Japan Ltd.
+(Refer note n)
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+(Refer note p)
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+(Refer note t)
+223 >>
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Caraco Pharmaceuticals Private Limited
+39
+40
+25 Alkaloida Chemical Company Zrt.
+The Taro Development Corporation
+100.00%
+22 Ranbaxy Nigeria Limited
+Mexico
+75.00%
+75.00%
+4 SPIL De Mexico S.A. DE C.V.
+Mexico
+100.00%
+100.00%
+5
+Sun Pharmaceutical Peru S.A.C.
+Peru
+Sun Pharma De Mexico S.A. DE C.V.
+99.33%
+6
+OOO "Sun Pharmaceutical Industries" Limited
+Russia
+100.00%
+100.00%
+Sun Pharma De Venezuela, C.A.
+Venezuela
+100.00%
+100.00%
+8
+99.33%
+Sun Pharma Laboratories Limited
+72.50%
+Bangladesh
+19,206.2
+19,057.1
+Chattem Chemicals Inc.
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+NOTE: 38 a) List of entities included in the Consolidated Financial Statements is as under:
+Proportion of ownership interest
+for the year ended
+Country of Incorporation
+72.50%
+March 31, 2020
+Parent Company
+Sun Pharmaceutical Industries Limited
+Direct Subsidiaries
+1
+Green Eco Development Centre Limited
+India
+100.00%
+100.00%
+2
+Sun Pharmaceutical (Bangladesh) Limited
+March 31, 2019
+India
+3
+100.00%
+100.00%
+15
+Sun Pharma (Netherlands) B.V.
+Netherlands
+100.00%
+100.00%
+16
+Foundation for Disease Elimination and Control of India
+India
+100.00%
+(Refer note e)
+(Refer note e)
+17 Zenotech Laboratories Limited
+India
+57.56%
+(Refer note f)
+57.56%
+(Refer note f)
+23
+24
+Indirect Subsidiaries
+18 Sun Farmaceutica do Brasil Ltda.
+100.00%
+19 Sun Pharma France (Formerly Known as Ranbaxy
+Pharmacie Generiques)
+20 Sun Pharmaceutical Industries, Inc.
+100.00%
+India
+100.00%
+India
+14 Softdeal Trading Company Private Limited
+Faststone Mercantile Company Private Limited
+100.00%
+100.00%
+10 Neetnav Real Estate Private Limited
+21 Ranbaxy (Malaysia) SDN. BHD.
+9
+100.00%
+100.00%
+11
+India
+Realstone Multitrade Private Limited
+100.00%
+100.00%
+12 Skisen Labs Private Limited
+13 Sun Pharma Holdings
+India
+100.00%
+100.00%
+Mauritius
+100.00%
+100.00%
+India
+19.4
+19.4
+2,970.6
+1,384.7
+808.5
+Equity instruments - quoted
+77.2
+93.9
+40,937.3
+7,365.8
+75,783.0
+152.2
+1,384.7
+Amortised cost
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Fair value through
+profit or loss
+Annual Report 2019-20
+* in Million
+As at March 31, 2019
+Fair value
+through other
+comprehensive
+income
+Financial assets
+Investments
+Equity instruments - unquoted
+170,457.9
+128,188.5
+87,640.4
+Refund due from government authorities
+434.1
+2,709.5
+3.0
+761.7
+Bonds/debentures - quoted
+56,766.1
+8,109.4
+Interest accrued on investments / balances with banks
+Derivatives designated as hedges
+Unbilled revenue
+Other financial assets
+Derivatives not designated as hedges
+Total
+Financial liabilities
+121.5
+11,825.0
+Borrowings
+Trade payables
+Interest accrued
+Unpaid dividends
+Security deposits
+Payable on purchase of property, plant and equipment
+Other financial liabilities
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Total
+230
+120.5
+5,848.6
+342.4
+Current maturities of long-term debt and finance lease obligations
+Government securities - quoted
+98,933.7
+5,455.7
+Security deposits
+Payable on purchase of property, plant and equipment
+Derivatives designated as hedges
+Other financial liabilities
+Derivatives not designated as hedges
+Total
+88,842.0
+1.4
+2.6
+743.6
+70,623.0
+2,133.0
+164.7
+5,181.9
+Unpaid dividends
+559.6
+254.2
+13,256.4
+64,157.3
+172,012.8
+6,209.9
+41,478.7
+391.7
+93.9
+126.6
+1,221.9
+267.5
+1,848.0
+0.9
+1,056.7
+Government securities - unquoted (*10,000)
+Interest accrued
+Current maturities of long-term debt and finance lease obligations
+71.9
+17,799.6
+556.9
+0.0
+Mutual funds - unquoted
+5,621.2
+Others - quoted
+39,785.5
+Venture funds - unquoted
+7,309.1
+Loans to related parties
+Loans to employees/others
+283.3
+2,980.6
+Trade payables
+Trade receivables
+Margin money/ security against guarantees/ commitments
+Security deposits
+Cash and cash equivalents
+Bank balances other than cash and cash equivalents
+Interest accrued on investments / balances with banks
+Refund due from government authorities
+Derivatives designated as hedges
+Other financial assets
+Derivatives not designated as hedges
+Total
+Financial liabilities
+Borrowings
+Deposits
+94,212.4
+2,211.5
+Bank balances other than cash and cash equivalents
+iii
+iv
+V
+Opening balance
+Add: shares allotted to employees on exercise of
+employee stock option (March 31, 2020 : NIL, March
+31, 2019 11,790)
+Closing balance
+Year ended March 31, 2020
+Number of shares
+2,399,334,970
+* in Million
+2,399.3
+Year ended March 31, 2019
+Number of shares
+* in Million
+2,399,323,180
+11,790
+2,399.3
+0.0
+2,399,334,970
+Reconciliation of the number of equity shares and amount outstanding at the beginning and at the end of
+reporting period
+2,399.3
+2,399.3
+334,956,764 (upto March 31, 2019: 334,956,764) equity shares of *1 each have been allotted, pursuant to scheme
+of amalgamation, without payment being received in cash during the period of five years immediately preceding the
+date at which the Balance Sheet is prepared.
+Refer note 57 for number of employee stock options against which equity shares are to be issued by the Company /
+ESOP Trust upon vesting and exercise of those stock options.
+7,500,000 (upto March 31, 2019: 7,500,000), equity shares of 1 each have been bought back during the period
+of five years immediately preceding the date at which the Balance Sheet is prepared. The shares bought back
+were cancelled.
+vi Equity shares held by each shareholder holding more than 5 percent equity shares in the Parent Company
+are as follows:
+Name of Shareholders
+Shanghvi Finance Private Limited
+Dilip Shantilal Shanghvi
+Life Insurance Corporation of India and its various
+As at March 31, 2020
+Number of shares
+% of holding
+As at March 31, 2019
+Number of shares
+2,399,334,970
+% of holding
+ii
+i Rights, preferences and restrictions attached to equity shares
+144.3
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+B) Guarantees given by the bankers on behalf of the Group
+NOTE: 40 COMMITMENTS
+1)
+II) For derivative related commitments (Refer note 46(c))
+Estimated amount of contracts remaining to be executed on capital account (net of advances) *
+III) For non-cancellable lease related commitments (Refer note 54)
+IV) Investment related commitments
+V) Letters of credit for imports
+The equity shares of the Parent Company, having par value of ₹1 per share, rank pari passu in all respects including
+voting rights and entitlement to dividend.
+VI) Buy-back related commitment (Refer note 73)
+As at
+March 31, 2020
+* in Million
+As at
+March 31, 2019
+3,379.6
+As at
+March 31, 2020
+24,334.3
+* in Million
+As at
+March 31, 2019
+20,783.5
+323.0
+608.6
+750.9
+1,846.1
+* The Group is committed to pay milestone payments and royalty on certain contracts, however, obligation to pay is contingent upon fulfilment of
+contractual obligation by parties to the contract.
+NOTE: 41 DISCLOSURES RELATING TO SHARE CAPITAL
+Annual Report 2019-20
+377.2
+1,114.5
+967,051,732
+959,772,578
+Investments
+Equity instruments - quoted
+Equity instruments - unquoted
+Bonds/debentures - quoted
+Convertible promissory note - unquoted
+Government securities - quoted
+Government securities - unquoted (*10,000)
+452.6
+5.8
+5,383.3
+27,248.1
+113.1
+27.0
+Financial assets
+0.0
+3,923.7
+Others - quoted
+54,639.6
+Venture funds - unquoted
+7,208.3
+Loans to related parties
+Loans to employees/others
+Trade receivables
+Deposits
+Margin money/ security against guarantees/ commitments
+Security deposits
+Cash and cash equivalents
+Mutual funds unquoted
+40.3
+Amortised cost
+Fair value
+through other
+comprehensive
+income
+40.0
+9.6
+230,285,690
+9.6
+6.4
+141,217,558
+5.9
+230,285,690
+152,884,946
+funds
+229 »
+Financial Statements
+* in Million
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+NOTE: 42 RESEARCH AND DEVELOPMENT EXPENDITURE
+Revenue, net (excluding depreciation) (Refer note 37)
+Capital
+NOTE: 43 CATEGORIES OF FINANCIAL INSTRUMENTS
+Fair value through
+profit or loss
+Year ended
+March 31, 2020
+19,206.2
+484.1
+19,690.3
+* in Million
+Year ended
+March 31, 2019
+19,057.1
+718.2
+19,775.3
+As at March 31, 2020
+Notes to the Consolidated Financial Statements
+144.3
+91,088.1
+150,304.4
+Sell
+USD
+Forward contracts
+USD 57.0
+USD 46.3
+NIS
+Sell
+USD
+Forward contracts
+USD 17.4
+USD 5.0
+JPY
+Buy
+USD
+CAD
+Forward contracts
+USD 227.5
+INR
+Sell
+USD
+Forward contracts
+ZAR 480.0
+ZAR 450.0
+INR
+Sell
+ZAR
+Forward contracts
+Derivatives designated as hedges
+Buy/Sell
+Currency
+USD 120.5
+USD 31.1
+Currency swaps
+JPY
+USD 7.2
+USD
+Sell
+EUR
+Forward contracts
+USD 4.9
+USD 6.6
+USD
+Sell
+GBP
+Forward contracts
+USD 4.5
+USD
+Sell
+RUB
+Forward contracts
+USD 7.4
+Buy
+USD
+USD 97.3
+Derivatives not designated as hedges
+Forward contracts
+USD
+Amount in Million
+As at
+March 31, 2019
+Buy
+USD 27.3
+Forward contracts
+AUD
+Sell
+USD
+USD 6.8
+INR
+USD 9.8
+As at
+March 31, 2020
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative
+contracts:
+2,480.4
+28.2
+2,508.6
+5,001.9
+46,656.8
+1,192.0
+2,117.9
+Cash and cash equivalents
+3,809.9
+44,538.9
+Trade receivables
+Financial assets
+Total
+Japanese Yen
+As at March 31, 2019
+South African
+Rand
+Russian Rouble
+4,427.5
+Euro
+* in Million
+38,643.6
+100,233.6
+61,590.0
+7,178.7
+552.1
+7,730.8
+140.0
+140.0
+121.7
+3,927.7
+88,313.4
+121.7
+2,494.4
+35,335.4
+1,433.3
+52,978.0
+Trade payables
+US Dollar
+2,908.2
+4,427.5
+502.4
+3,410.6
+Changes in the fair value of forward contracts and
+option contracts that economically hedge monetary
+assets and liabilities in foreign currencies, and for
+which no hedge accounting is applied, are recognised
+in the consolidated statement of profit and loss. The
+changes in fair value of the forward contracts and
+option contracts, as well as the foreign exchange
+gains and losses relating to the monetary items,
+are recognised in the consolidated statement of
+profit and loss.
+of *570.4 Million for year ended March 31, 2020 and
+loss of 22.5 Million for year ended March 31, 2019
+on occurrence of forecasted sale transaction.
+In respect of the aforesaid hedges of highly probable
+forecasted transactions, the Group has recorded a loss
+of 1,184.4 Million for the year ended March 31, 2020
+and gain of $539.0 Million for the year ended March
+31, 2019 in other comprehensive income. The Group
+also recorded hedges as a component of revenue, gain
+of such cash flow hedges is recorded as in other
+comprehensive income, and re-classified in the income
+statement as revenue in the period corresponding
+to the occurrence of the forecasted transactions.
+The ineffective portion of such cash flow hedges is
+immediately recorded in the consolidated statement
+of profit and loss.
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+236
+Hedges of highly probable forecasted transactions
+The Group designates its derivative contracts that
+hedge foreign exchange risk associated with its highly
+probable forecasted transactions as cash flow hedges
+and measures them at fair value. The effective portion
+The Group is exposed to exchange rate risk that
+arises from its foreign exchange revenues and
+expenses, primarily in US Dollar, Euro, South African
+Rand, Japanese Yen and Russian Rouble and foreign
+currency debt is primarily in US Dollar. The Group
+uses foreign currency forward contracts, foreign
+currency option contracts, interest rate swap and
+currency swap contracts (collectively, "derivatives")
+to mitigate its risk of changes in foreign currency
+exchange rates. The counterparty for these contracts
+is generally a bank or a financial institution.
+Derivative contracts
+In management's opinion, the sensitivity analysis is
+unrepresentative of the inherent foreign exchange
+risk because the exposure at the end of the reporting
+period does not reflect the exposure during the year.
+For the years ended March 31, 2020 and March 31,
+2019 every 5% strengthening in the exchange rate
+between the Indian rupee and the respective major
+currencies for the above mentioned financial assets/
+liabilities would increase Group's profit and increase
+in Group's equity by approximately 1,990.4 Million
+and 2,355.1 Million respectively. A 5% weakening of
+the Indian rupee and the respective major currencies
+would lead to an equal but opposite effect.
+b) Sensitivity
+109,106.7
+44,884.6
+58,164.9
+3,840.5
+62,005.4
+Financial liabilities
+Borrowings
+62,850.4
+1,371.7
+64,222.1
+Cross Currency
+Trade payables
+2,281.6
+104,919.9
+3,653.3
+83.7
+83.7
+158.7
+158.7
+291.1
+291.1
+42,069.5
+Currency cum interest rate swaps
+USD
+Buy
+1.0
+Sun Pharmaceutical Medicare Limited
+234.0
+3.3
+2.9
+211.0
+JSC Biosintez
+Ranbaxy South Africa (Pty) Ltd
+1,677.4
+1,677.4
+Sun Pharmaceutical Industries Limited
+595.4
+595.4
+Zenotech Laboratories Limited
+355.9
+66,093.4
+380.9
+382.3
+417.4
+18,425.9
+20,103.4
+13,098.5
+14,300.4
+128.2
+142.9
+25,594.4
+387.4
+317.6
+27,943.1
+Ranbaxy Farmaceutica Ltda.
+Terapia SA
+Taro Pharmaceutical Industries Ltd.
+Basics GmbH
+1.0
+60,883.7
+Total (A)
+Less:
+267.5
+238
+The carrying amount of goodwill are stated above. The recoverable amounts have been determined based on value
+in use calculations which uses cash flow projections covering generally a period of five years (which are based on key
+assumptions such as margins, expected growth rates based on past experience and Management's expectations/
+extrapolation of normal increase/ steady terminal growth rate) and appropriate discount rates that reflects current
+market assessments of time value of money and risks specific to these investments. The cash flow projections
+includes estimates for five years developed using internal forecasts and terminal growth rate thereafter. The planning
+horizon reflects the assumptions for short to mid-term market developments. The average growth rate used in
+extrapolating cash flows beyond the planning period ranged from 0.5% to 5.5% for the year ended March 31, 2020.
+Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount
+59,557.7
+56,067.1
+3,490.6
+* in Million
+Year ended
+March 31, 2019
+64,814.6
+59,557.7
+5,256.9
+Year ended
+March 31, 2020
+59,557.7
+64,814.6
+1,326.0
+1,278.8
+59.7
+65.2
+27.5
+27.5
+Capital reserve in respect of:
+Alkaloida Chemical Company Zrt.
+Ranbaxy Nigeria Limited
+Sun Pharmaceutical Industries Limited
+Ranbaxy Malaysia SDN. BHD.
+Total (B)
+Sun Pharma Japan Ltd.
+Total (A-B)
+Opening balance
+Add/ (less): Foreign currency translation difference
+Closing balance
+1,184.5
+1,237.3
+1.6
+1.5
+ii) Below is the reconciliation of the carrying amount of goodwill:
+Sun Farmaceutica do Brasil Ltda.
+Sun Pharmaceutical Industries, Inc.
+Goodwill in respect of:
+Forward contracts
+USD 4.2
+USD 2.6
+HUF
+Sell
+USD
+Forward contracts
+USD 69.5
+USD 8.8
+CAD
+Sell
+USD
+Forward contracts
+USD 6.8
+USD 2.8
+NIS
+Sell
+INR
+USD 50.0
+Interest rate swaps (Floating to fixed)
+USD
+Buy
+USD
+RUB
+USD 50.0
+USD
+Buy
+USD
+USD 125.0
+Forward contracts
+USD
+Interest rate swaps (Floating to fixed)
+Borrowings
+Sell
+RON 6.4
+March 31, 2019
+As at
+March 31, 2020
+in Million
+As at
+i)
+Goodwill acquired in business combination is allocated, at acquisition, to the cash generating units (CGUs) that are
+expected to benefit from that business combination. The carrying amount of goodwill has been allocated as follows:
+NOTE: 47 GOODWILL (NET):
+sales of active pharmaceutical ingredients, including the raw material components for such active pharmaceutical
+ingredients. These are commodity products, whose prices may fluctuate significantly over short periods of time.
+The prices of the Group's raw materials generally fluctuate in line with commodity cycles, although the prices of raw
+materials used in the Group's active pharmaceutical ingredients business are generally more volatile. Cost of raw
+materials forms the largest portion of the Group's cost of revenues. Commodity price risk exposure is evaluated and
+managed through operating procedures and sourcing policies. As of March 31, 2020, the Group had not entered into
+any material derivative contracts to hedge exposure to fluctuations in commodity prices.
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+Financial Statements
+237 >>
+Exposure to market risk with respect to commodity
+prices primarily arises from the Group's purchases and
+interest rate component applicable on its closing
+balance of loans and borrowings would increase the
+Group's profit by approximately 339.6 Million and
+*330.7 Million respectively. A 50 basis point increase
+in floating interest rate would have led to an equal but
+opposite effect.
+For the year ended March 31, 2020 and March 31,
+2019, every 50 basis point decrease in the floating
+The Group has loan facilities on floating interest rate,
+which exposes the Group to risk of changes in interest
+rates. The Group monitors the interest rate movement
+and manages the interest rate risk by evaluating
+interest rate swaps etc. based on the market /
+risk perception.
+Interest rate risk
+RON 15.2
+Forward contracts
+RON
+Buy
+RUB
+Forward contracts
+RON
+USD
+RON
+Currency swaps
+USD
+Sell
+RON
+RON 6.9
+USD 20.0
+USD 9.1
+Sell
+Financial liabilities
+Commodity rate risk
+178.2
+Purchases
+22.5
+71.9
+Balance at the beginning of the year
+Unlisted shares valued at fair value
+March 31, 2019
+Year ended
+Year ended
+March 31, 2020
+* in Million
+Reconciliation of Level 3 fair value measurements
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost
+approximates their fair value.
+There were no transfers between Level 1 and 2 in the periods.
+# The investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic
+purpose. Upon the application of Ind AS 109, the Group has chosen to designate these investments in equity instruments
+as at fair value through other comprehensive income as the management believes that this provides a more meaningful
+presentation for medium or long-term strategic investments, than reflecting changes in fair value immediately in
+consolidated statement of profit and loss.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair
+value. The cost of unquoted investments approximates the fair value because there is wide range of possible fair value
+measurements and the costs represents estimate of fair value within that range.
+113.2
+Annual Report 2019-20
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+232
+Level 3 inputs are unobservable inputs for the asset or liability.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
+either directly or indirectly.
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
+the measurement date.
+411.8
+144.3
+267.5
+Total
+Derivatives not designated as hedges
+Derivatives designated as hedges
+71.9
+8,122.9
+for the year ended March 31, 2020
+53.5
+Others including disposal / settlements / charge / exchange fluctuation to consolidated statement of
+profit and loss
+(66.2)
+b) Dividend on equity shares paid during the year
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+Financial Statements
+233 >>
+(6,683.5)
+447,226.0
+N.A.
+N.A.
+491,246.9
+(26,249.2)
+Net debt to total equity ratio
+Total equity, including reserves
+Net debt
+111,827.1
+109,398.0
+Less : cash and cash equivalents, bank balances (excluding earmarked balances with banks) and
+current investments
+* in Million
+As at
+March 31, 2019
+105,143.6
+(4.1)
+Balance at the end of the year
+118.9
+71.9
+NOTE: 45 CAPITAL MANAGEMENT
+The Group's capital management objectives are:
+69,218.9
+- to ensure the Group's ability to continue as a going concern; and
+The Group monitors capital on the basis of the carrying amount of debt less cash and cash equivalents, bank balances
+(excluding earmarked balances with banks) and current investments as presented on the face of the consolidated financial
+statements. The Group's objective for capital management is to maintain an optimum overall financial structure.
+a)
+Debt equity ratio
+As at
+March 31, 2020
+Debt (includes non-current borrowings, current borrowings, current maturities of finance lease
+obligations and current maturities of long-term debt)
+83,148.8
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+254.2
+559.6
+7,309.1
+Venture funds - unquoted
+54,639.6
+Others - quoted
+3,923.7
+Mutual funds - unquoted
+27.0
+-
+Government securities quoted
+113.1
+Convertible promissory note - unquoted
+27,248.1
+Bonds/debentures - quoted
+5.8
+Equity instruments - unquoted
+5,383.3
+452.6
+Equity instruments - quoted
+Equity instruments - quoted #
+231 >>>
+60,425.9
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+7,208.3
+NOTE : 44 FAIR VALUE HIERARCHY
+in Million
+Level 1
+As at March 31, 2020
+Level 2
+Level 3
+Financial assets
+Investments
+Financial assets and liabilities measured at fair value on a recurring basis at the end of each reporting period
+Year ended
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Financial liabilities
+Total
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Venture funds - unquoted
+39,785.5
+Others - quoted
+5,621.2
+Mutual funds - unquoted
+556.9
+Government securities - quoted
+Bonds/debentures - quoted
+71.9
+Level 3
+As at March 31, 2019
+Level 2
+in Million
+17,799.6
+121.5
+Total
+91,674.3
+7,672.2
+118.9
+Financial liabilities
+342.4
+Derivatives designated as hedges
+19.4
+1,404.1
+Financial assets
+Investments
+Equity instruments - quoted #
+Equity instruments - unquoted
+Level 1
+5,455.7
+1,384.7
+March 31, 2020
+Derivatives not designated as hedges
+Total
+Dividend on equity shares
+Market risk is the risk of loss of future earnings, fair
+values or future cash flows that may result from adverse
+changes in market rates and prices (such as interest rates,
+foreign currency exchange rates and commodity prices)
+or in the price of market risk-sensitive instruments as a
+result of such adverse changes in market rates and prices.
+Market risk is attributable to all market risk-sensitive
+financial instruments, all foreign currency receivables
+and payables and all short term and long-term debt. The
+Group is exposed to market risk primarily related to foreign
+Market risk
+150,484.9
+411.8
+2,023.2
+3,682.1
+10.2
+13,248.8
+20.4
+105,324.1
+41,478.7
+41,478.7
+3,671.9
+135,212.9
+391.4
+2,023.2
+13,238.6
+90,062.3
+Total
+More than
+3 years
+1-3 years
+Less than 1 year
+* in Million
+As at March 31, 2019
+As at March 31, 2020
+Less than 1 year
+1 - 3 years
+More than
+3 years
+Total
+62,967.9
+exchange rate risk, interest rate risk and the market value
+of its investments. Thus, the Group's exposure to market
+risk is a function of investing and borrowing activities
+and revenue generating and operating activities in
+foreign currencies.
+15,338.3
+40,937.3
+4,097.9
+108,003.1
+984.5
+83,281.5
+40,937.3
+4.5
+15,342.8
+355.2
+4,975.3
+64.4
+4,102.4
+128,321.2
+1,404.1
+4,975.3
+* in Million
+Foreign exchange risk
+235 »
+4,030.1
+* in Million
+Year ended
+March 31, 2019
+1,287.4
+6,513.1
+48,417.1
+2,726.1
+57,699.8
+113.5
+64.7
+189.2
+1,291.0
+1,181.2
+Cash and cash equivalents
+1,287.4
+3,840.9
+5,222.1
+47,235.9
+Trade receivables
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+borrowings (primarily in US Dollar). As a result, if the value
+of the Indian rupee appreciates relative to these foreign
+currencies, the Group's revenues and expenses measured
+in Indian rupees may decrease or increase and vice-versa.
+The exchange rate between the Indian rupee and these
+foreign currencies has changed substantially in recent
+periods and may continue to fluctuate substantially in
+the future. Consequently, the Group uses both derivative
+and non-derivative financial instruments, such as foreign
+exchange forward contracts, option contracts, currency
+swap contracts and foreign currency financial liabilities,
+to mitigate the risk of changes in foreign currency
+exchange rates in respect of its highly probable forecasted
+transactions and recognised assets and liabilities.
+The Group's foreign exchange risk arises from its foreign
+operations, foreign currency revenues and expenses,
+(primarily in US Dollar, Euro, South African Rand,
+Japanese Yen and Russian Rouble) and foreign currency
+a) Significant foreign currency risk exposure relating to trade receivables, cash and cash equivalents, borrowings and trade
+payables
+Euro
+Russian Rouble
+As at March 31, 2020
+South African
+Rand
+Japanese Yen
+Total
+Financial assets
+US Dollar
+Derivatives
+* in Million
+Trade payables
+Investments
+The Group limits its exposure to credit risk by generally
+investing in liquid securities and only with counterparties
+that have a good credit rating. The Group does not
+expect significant any losses from non-performance by
+these counter-parties, and does not have any significant
+concentration of exposures to specific industry sectors or
+specific country risks.
+Trade receivables
+The Group has used expected credit loss (ECL) model for
+assessing the impairment loss. For this purpose, the Group
+uses a provision matrix to compute the expected credit loss
+amount. The provision matrix takes into account external
+and internal risk factors and historical data of credit losses
+from various customers.
+Financial assets for which loss allowances is measured using the expected credit loss
+Trade receivables
+less than 180 days
+which the Group grants credit terms in the normal
+course of business.
+180 - 365 days
+beyond 365 days
+234
+As at
+March 31, 2020
+* in Million
+As at
+March 31, 2019
+93,375.8
+1,112.6
+86,212.4
+Total
+2,237.7
+Credit risk is the risk of financial loss to the Group if a
+customer or counterparty to a financial instrument fails
+to meet its contractual obligations and arises principally
+from the Group's receivables from customers, loans
+and investments. Credit risk is managed through credit
+approvals, establishing credit limits and continuously
+monitoring the creditworthiness of counterparty to
+The Group's activities expose it to a variety of financial
+risks, including market risk, credit risk and liquidity risk.
+The Group's risk management assessment and policies
+and processes are established to identify and analyse the
+risks faced by the Group, to set appropriate risk limits and
+controls, and to monitor such risks and compliance with
+the same. Risk assessment and management policies and
+processes are reviewed regularly to reflect changes in
+market conditions and the Group's activities.
+Final dividend for the year ended March 31, 2019 of *2.75 (year ended March 31, 2018: *2.0) per
+fully paid share
+6,595.7
+Other financial liabilities
+4,791.6
+Dividend distribution tax on above
+1,355.8
+Credit risk
+984.9
+7,193.9
+Dividend distribution tax on above
+1,478.7
+Dividends not recognised at the end of the reporting period
+The Board of Directors at it's meeting held on May 27, 2020 have recommended payment of final dividend of ₹1 per share
+of face value of ₹1 each for the year ended March 31, 2020. The same amounts to ₹2,399.3 Million.
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and hence not
+recognised as liability.
+Interim dividend for the year ended March 31, 2020 of *3 (year ended March 31, 2019: Nil) per
+fully paid share
+976.4
+3,899.3
+NOTE : 46 FINANCIAL RISK MANAGEMENT
+The Transformation Journey
+Borrowings
+Non derivative
+Derivatives
+96,726.1
+Other financial liabilities
+Trade payables
+Borrowings
+Non derivative
+The table below provides details regarding the contractual maturities of significant financial liabilities:
+The Group manages its liquidity risk by ensuring, as far as
+possible, that it will always have sufficient liquidity to meet
+its liabilities when due, under both normal and stressed
+conditions, without incurring unacceptable losses or risk to
+the Group's reputation.
+(1,165.0)
+2,246.1
+(399.4)
+2,513.7
+268.2
+667.0
+3,142.9
+The Group had unutilised working capital lines from
+banks of *60,566.7 Million as on March 31, 2020,
+*42,377.3 Million as on March 31, 2019.
+Year ended
+March 31, 2019
+Annual Report 2019-20
+2,246.1
+for the year ended March 31, 2020
+Addition
+Recoveries/reversals
+Balance at the end of the year
+Notes to the Consolidated Financial Statements
+Movement in the expected credit loss allowance on trade receivables
+Balance at the beginning of the year
+Other than Trade receivables, the Group has recognised an
+allowance of 10.2 Million (March 31, 2019: 9.8 Million)
+against past due loans including interest and *500.0 Million
+of other receivables based on assessment regarding
+recoverability of the same.
+Liquidity risk
+Liquidity risk is the risk that the Group will not be able to
+meet its financial obligations as they become due.
+Year ended
+March 31, 2020
+* in Million
+Trade receivables
+Contract assets
+88,842.0
+9,836.7
+As at
+March 31, 2020
+* in Million
+Contract liabilities
+94,212.4
+434.1
+As at
+March 31, 2019
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Year ended
+Notes to the Consolidated Financial Statements
+Financial Statements
+241 >>
+(265,050.5)
+(272,715.3)
+8,487.9
+286,862.8
+323,251.7
+Contract balances
+Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
+revenue received from customer for which performance obligation has not yet been completed.
+Interest expense on lease liability
+(a) Effective April 01, 2019, the Company has adopted Ind AS 116 "Leases”, and applied to all lease contracts existing on
+April 01, 2019 using the modified retrospective method. Accordingly, the Company has recognised a lease liability
+measured at the present value of the remaining lease payments, and right-of-use (ROU) asset at an amount equal to
+lease liability (adjusted for any related prepayments). Management has excercised judgement in determining whether
+extension and termination options are reasonably certain to be excercised. Expenses related to short term leases and
+low-value assets for the year ended March 31, 2020 is ₹193.7 Million.
+155.5
+338.3
+149.5
+204.7
+(7,664.8)
+* in Million
+March 31, 2019
+Year ended
+March 31, 2020
+* in Million
+Year ended
+<242
+Balance at end of the year
+Translation difference
+Payment towards lease liabilities
+Deletions
+Additions
+Balance as at Beginning of the year
+Particulars
+(d) The following is the movement of lease liabilities
+later than one year and not later than five years
+The future minimum lease payments under non-cancellable operating lease
+not later than one year
+Group as lessor
+(c) Operating lease
+(b) The Group has given certain premises and plant and machinery under operating lease or leave and license
+agreements for a period ranging upto 10 years.These includes both cancellable and non-cancellable leases and
+agreements. The Group has received refundable interest free security deposits, where applicable, in accordance
+with agreed terms.
+The performance obligation is satisfied when control of the goods or services are transferred to the customers based on
+the contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
+NOTE: 54 LEASES
+(8,491.3)
+(257,377.5)
+(265,868.8)
+Revenue by Geography
+* in Million
+Year ended
+March 31, 2019
+Rest of world
+Emerging markets
+United States of America
+India
+Rest of world
+4.
+Emerging markets
+3.
+United States of America
+Year ended
+March 31, 2020
+2.
+India
+1.
+The Chief Operating Decision Maker ('CODM') evaluates
+the Group's performance and allocates resources based on
+an analysis of various performance indicators by reportable
+segments. The Group's reportable segments are as follows:
+NOTE: 52 SEGMENT REPORTING
+Annual Report 2019-20
+March 31, 2020
+for the year ended March 31, 2020
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+The reportable segments derives their revenues from the
+sale of pharmaceuticals products (generics, speciality, API,
+etc.). The CODM reviews revenue as the performance
+indicator. The measurement of each segment's revenues,
+expenses and assets is consistent with the accounting
+policies that are used in preparation of the Group's
+consolidated financial statements.
+101,862.7
+in Million
+Year ended
+March 31, 2019
+Year ended
+March 31, 2020
+589,120.5
+Revenue from contracts with customers
+Chargebacks, Rebates, discounts and others
+Provision for sales return
+Less :
+Revenue as per contracted price, net of returns
+The reconciling items of revenue recognised in the consolidated statement of profit and loss with the contracted price
+are as follows:
+Ind AS 115 using the modified retrospective method of
+adoption with the date of initial application of April 01,
+2018 which does not require restatement of comparative
+period. The Company elected to apply the standard to all
+contracts as at April 01, 2018. Accordingly, an adjustment
+of 6,493.0 Million was recognised to retained earnings
+as on April 01, 2018. Further, the Company has recorded
+an additional amount of *3,175.8 Million (March 31, 2019
+493.7 Million) as deferred revenue pursuant to the
+requirements of Ind AS 115. Revenue of $1,543.8 Million
+(March 31,2019: 628.9 Million) has been recognised as
+Revenue from contract with customer in FY20 pursuant
+to completion of performance obligation in respect of the
+above contracts.
+Ind AS 115 "Revenue from Contracts with Customers"
+was issued on March 28, 2018 and supersedes Ind AS 11
+"Construction Contracts" and Ind AS 18 "Revenue" and
+it applies, with limited exceptions, to all revenue arising
+from contracts with its customers. The Company adopted
+NOTE: 53 REVENUE FROM CONTRACTS WITH
+CUSTOMERS
+No customer contributed more than 10.0% of total
+revenues for the year ended March 31, 2020.
+In view of the interwoven / intermix nature of business
+and manufacturing facility, other segmental information is
+not ascertainable.
+286,862.8
+40,638.0
+58,698.0
+109,360.1
+78,166.7
+323,251.7
+50,029.5
+61,972.5
+109,387.0
+559,578.1
+1,346.4
+363.4
+(647.3)
+67.7
+243.1
+67.5
+Interest cost
+345.9
+Current service cost
+Year ended March 31, 2020
+Pension Fund
+(Unfunded)
+Expense recognised in the consolidated statement
+of profit and loss (Refer note 34)
+Gratuity
+(Funded)
+Expected return on plan assets
+* in Million
+Year ended March 31, 2019
+Pension Fund
+(Unfunded)
+Obligation in respect of defined benefit plan
+and other long term employee benefit plans are
+actuarially determined as at the year end using the
+'Projected Unit Credit' method. Gains and losses
+on changes in actuarial assumptions relating to
+defined benefit obligation are recognised in other
+comprehensive income whereas gains and losses in
+respect of other long term employee benefit plans
+are recognised in the consolidated statement of
+profit and loss.
+as per the Parent and Indian subsidiaries rules
+with corresponding charge to the consolidated
+statement of profit and loss amounting to *586.4
+Million (March 31, 2019: ₹446.7 Million) and it covers
+all regular employees. Major drivers in actuarial
+assumptions, typically, are years of service and
+employee compensation.
+Actuarial valuation for compensated absences is
+done as at the year end and the provision is made
+Other long term benefit plan
+iv) Salary risk - The present value of the defined
+benefit plan liability is calculated by reference to
+the future salaries of plan participants. As such,
+an increase in the salary of the plan participants
+will increase the plan's liability.
+defined benefit plan liability is calculated by
+reference to the best estimate of the mortality
+of plan participants both during and after their
+employment. An increase in the life expectancy
+of the plan participants will increase the
+plan's liability.
+iii) Longevity risk - The present value of the
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Gratuity
+(Funded)
+(240.9)
+256.8
+(229.9)
+Expense charged to the consolidated statement of
+profit and loss
+949.3
+Obligations as at the beginning of the year
+11.1
+Reconciliation of defined benefit obligations
+income
+(295.9)
+64.9
+336.9
+80.8
+Expense/(income) charged to other comprehensive
+26.7
+2.3
+(322.6)
+64.9
+334.6
+80.8
+Remeasurement of defined benefit obligation
+recognised in other comprehensive income
+Actuarial loss (gain) on defined benefit obligation
+Actuarial loss/ (gain) on plan assets
+372.8
+67.7
+365.6
+67.5
+Notes to the Consolidated Financial Statements
+3,294.1
+Financial Statements
+Interest rate risk - A decrease in the bond interest
+rate will increase the plan liability. However, this
+will be partially offset by an increase in the return
+on the plan's debt investments.
+2,076.7
+1,078.4
+March 31, 2020
+As at
+in Million
+Defined contribution plan
+NOTE: 55 EMPLOYEE BENEFITS PLANS
+Later than five years
+Later than one year and not later than five years
+1,839.3
+Less than one year
+(e) The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted
+basis:
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+3,440.3
+153.6
+(959.7)
+253.2
+Particulars
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Corporation
+(ESIC) and other Funds which covers all regular employees of the Parent and Indian subsidiaries. While the employees and
+the Parent and Indian subsidiaries make predetermined contributions to the Provident Fund and ESIC, contribution to the
+Family Pension Fund and other statutory funds are made only by the Parent and Indian subsidiaries. The contributions
+are normally based on a certain percentage of the employee's salary. Amount recognised as expense in respect of these
+defined contribution plans, aggregate to ₹1,037.8 Million (March 31, 2019: 947.7 Million).
+Contribution to Provident Fund and Family Pension Fund
+Contribution to Superannuation Fund
+Investment risk - The present value of the
+defined benefit plan liability is calculated using
+a discount rate determined by reference to the
+market yields on government bonds denominated
+in Indian Rupees. If the actual return on plan
+asset is below this rate, it will create a plan
+deficit. However, the risk is partially mitigated by
+investment in LIC managed fund.
+ii)
+i)
+These plans typically expose the Parent and Indian
+subsidiaries to actuarial risks such as: investment risk,
+interest rate risk, longevity risk and salary risk.
+Risks
+The Parent and Indian subsidiaries has an obligation
+towards pension, a defined benefit retirement plan,
+with respect to certain employees, who had already
+retired before March 01, 2013, will continue to
+receive the pension as per the pension plan.
+0.9
+1.2
+43.1
+53.2
+64.9
+63.2
+in Million
+Year ended
+March 31, 2019
+838.8
+920.2
+Year ended
+March 31, 2020
+b) Pension fund
+In respect of Gratuity, a defined benefit plan,
+contributions are made to LIC's Recognised Group
+Gratuity Fund Scheme. It is governed by the Payment
+of Gratuity Act, 1972. Under the Gratuity Act,
+employees are entitled to specific benefit at the time
+of retirement or termination of the employment
+on completion of five years or death while in
+employment. The level of benefit provided depends
+on the member's length of service and salary at the
+time of retirement/termination age. Provision for
+gratuity is based on actuarial valuation done by an
+independent actuary as at the year end. Each year,
+the Parent and Indian subsidiaries reviews the level
+of funding in gratuity fund. The Parent and Indian
+subsidiaries decides its contribution based on the
+results of its annual review. The Parent and Indian
+subsidiaries aims to keep annual contributions
+relatively stable at a level such that the fund assets
+meets the requirements of gratuity payments in short
+to medium term.
+Gratuity
+Defined benefit plan
+Contribution to Labour Welfare Fund
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+243 »
+15.7
+Other
+comprehensive
+income movement
+during the year
+15.7
+Inventory and other related items
+5,310.3
+5,733.7
+100.5
+(144.0)
+(2,795.4)
+8,105.7
+Unabsorbed depreciation / carried forward losses
+5,777.2
+Expenses claimed for tax purpose on payment basis
+6,194.5
+Deferred tax assets
+in Million
+Profit/(loss)
+movement during
+the year*
+Opening balance
+April 01, 2019
+Deferred tax assets (Net)
+i)
+6,008.8
+8,228.0
+1,818.1
+(4,523.6)
+Closing balance
+March 31, 2020
+3,785.4
+9,979.9
+Intangible assets
+Less: Deferred tax liabilities
+39,767.7
+323.6
+5,586.8
+33,857.3
+11,397.1
+3,880.1
+7,517.0
+MAT credit entitlement
+28,370.6
+323.6
+1,706.7
+26,340.3
+4,492.2
+223.1
+1,782.9
+2,486.2
+Others
+2,854.5
+(922.2)
+3,776.7
+911.0
+Difference between written down value of property,
+3,310.0
+Income tax expense recognised in consolidated statement of profit and loss
+17,505.5
+34.944%
+34.944%
+38,102.0
+50,095.9
+Income tax expense calculated at corporate tax rate
+Income tax rate in India (%)
+Profit before tax
+Reconciliation of tax expense
+13,314.4
+* in Million
+Year ended
+March 31, 2019
+Tax Reconciliation
+NOTE: 49 INCOME TAXES
+NOTE: 48 DISCLOSURES MANDATED BY THE COMPANIES ACT, 2013 SCHEDULE III PART II BY WAY
+OF ADDITIONAL INFORMATION IS GIVEN IN ANNEXURE 'A'.
+rate is estimated on the weighted average cost of capital for respective CGU or group of CGUs. Discount rate used
+ranged from 0.7% to 11.8% for the year ended March 31, 2020. The management believes that any reasonable
+possible change in key assumptions on which recoverable amount is based is not expected to cause the aggregate
+carrying amount to exceed the aggregate recoverable amount of the cash generating unit. Based on the impairment
+assessment, the Management has determined no impairment loss in the value of goodwill.
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+3,415.3
+Year ended
+March 31, 2020
+Effect of deduction claimed under chapter VI A of Income Tax Act, 1961
+(10,218.1)
+(6,841.0)
+Others
+Tax payable under MAT on which DTA was not created
+(1,653.4)
+(3,061.6)
+1,609.4
+12,555.2
+(205.1)
+(5,325.3)
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+Effect of difference between Indian and foreign tax rates and non taxable subsidiaries
+Effect of deferred tax expense/ (credit) on unrealised profits
+(1,129.4)
+(592.9)
+Effect of income which is taxed at special rates
+(2,950.2)
+(2,054.1)
+Effect of Incremental deduction allowed on account of research and development costs and other allowances
+1,371.0
+723.5
+Effect of expenses that are not deductible in determining taxable profit
+(235.9)
+(90.6)
+Effect of income that is exempt from tax
+NOTE: 50 DEFERRED TAX
+1
+11.1
+6,307.7
+6,971.9
+96,960.2
+March 31, 2019
+in Million
+As at
+As at
+March 31, 2020
+Unused tax credits (including MAT credit entitlement)
+Deductible temporary differences
+Unabsorbed depreciation
+Tax losses (includes capital in nature)
+iii) Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax
+assets have been recognised are attributable to the following:
+* Movement during the year includes foreign currency translation difference amounting to ₹1,111.7 Million gain for the year ended
+March 31, 2020.
+88,027.8
+581.4
+(410.2)
+1,042.8
+1,647.3
+51.2
+1,043.3
+552.8
+1,218.5
+926.3
+292.2
+(51.2)
+30,608.0
+38,885.4
+8,819.0
+1
+2,399,330,257
+2,399,334,970
+3,575
+26,654.2
+2,399,326,681
+March 31, 2019
+Year ended
+37,649.3
+2,399,334,970
+Year ended
+March 31, 2020
+<240
+Diluted earnings per share (in )
+Basic earnings per share (in )
+Weighted average number of shares used in computing diluted earnings per share (A+B)
+Nominal value per share (in )
+Profit for the year (in Million) - used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic earnings per share (A)
+Add: Dilution effect of employee stock option (B)
+NOTE: 51 EARNINGS PER SHARE
+The unused tax credits will expire from financial year 2021-22 to financial year 2034-35 and unused tax losses will expire
+from financial year 2020-21 to 2039-40. In case of certain overseas subsidiaries there is no expiry period for tax losses
+and unused tax credits.
+155,829.3
+156,624.7
+20,881.4
+20,237.5
+8,034.7
+MAT credit entitlement
+664.2
+428.8
+117.0
+ii) Deferred tax liabilities (Net)
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+Financial Statements
+239 >>
+31,752.9
+526.4
+5,677.8
+Deferred tax liabilities
+25,548.7
+(202.8)
+(91.0)
+8,308.6
+1,042.9
+(202.8)
+(755.2)
+2,000.9
+Others
+plant and equipment and capital work-in-progress as
+per books of accounts and income tax
+8,014.8
+Difference between written down value of property,
+plant and equipment and capital work-in-progress as
+per books of accounts and income tax and others
+Opening balance
+April 01, 2019
+Profit/(loss)
+movement during
+the year
+260.6
+128.3
+5.7
+(21.0)
+143.6
+300.5
+45.5
+138.0
+117.0
+Expenses claimed for tax purpose on payment basis
+Others
+Less Deferred tax assets
+2,228.7
+633.1
+1,595.6
+2,228.7
+Closing balance
+March 31, 2020
+* in Million
+during the year *
+Other
+comprehensive
+income movement
+633.1
+1,595.6
+51.2
+903.7
+Lapsed during the year
+Current service cost
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+<246
+On November 4, 2019, Taro announced that its Board of Directors approved a US$300 Million share repurchase of
+ordinary shares. On November 15, 2019, the Taro commenced a modified "Dutch auction" tender offer to repurchase up
+to US$225 Million in value of its ordinary shares. In accordance with the terms and conditions of the tender offer, which
+expired on December 16, 2019, Taro accepted for payment 280,719 ordinary shares at the final purchase price of
+US$91.00 per share.
+On November 23, 2016, Taro announced that its Board of Directors approved a US$250 Million repurchase of ordinary
+shares, which was completed on January 11, 2019. Under the program, Taro bought back 2,493,378 of its ordinary shares
+in open market transactions, in accordance with a 10b5-1 program, at an average price of US$100.28 per share. During the
+year ended March 31, 2019, Taro repurchased 888,719 shares through the November 2016 program at an average price of
+US$95.05 per share.
+Annual Report 2019-20
+NOTE: 56
+The contribution expected to be made by the Parent and Indian subsidiaries for gratuity, during financial year ending
+March 31, 2021 is 976.1 Million (March 31, 2020 334.2 Million).
+950.4
+2,358.1
+9.9
+67.3
+935.1
+9.7
+66.2
+2,459.6
+In the United States, the Company sponsors a defined contribution 401(k) retirement savings plan for all eligible
+employees who meet minimum age and service requirements. The Company has no further obligations under the
+plan beyond its annual matching contributions.
+NOTE: 57 EMPLOYEE SHARE-BASED PAYMENT PLANS
+The Company operates employee stock option scheme namely, SUN Employee Stock Option Scheme-2015 (SUN-ESOS
+2015) for the grant of stock options to the eligible personnel. Options are granted at the discretion of the Committee to
+selected employees depending upon certain criterion. Each option comprises one underlying equity share.
+The movement of the options (post split) granted under SUN-ESOS 2015
+562.5
+(158,739)
+0.9
+562.5
+562.5
+158,739
+Weighted-
+average remaining
+contractual life
+(years)
+Weighted-average
+exercise prices (*)
+Range of exercise
+prices (*)
+Stock options
+(numbers)
+March 31, 2020
+Outstanding at the end of the year
+Lapsed during the year
+Exercised during the year
+Outstanding at the commencement of the year
+2,908.1
+2,143.7
+4,044.3
+2,122.9
+88.8
+Surplus fund lying uninvested
+Insurer managed funds (Funded with LIC, break-up not
+available)
+Bonds and securities
+Central government securities
+The major categories of plan assets are as under:
+Thereafter
+5th year
+4th year
+3rd year
+2nd year
+1st year
+next
+28.6
+46.8
+683.4
+562.5
+88.4
+88.0
+398.5
+84.8
+469.4
+85.5
+414.2
+85.8
+470.3
+86.1
+469.1
+86.7
+465.0
+87.1
+474.9
+87.5
+507.8
+698.8
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation for
+Exercisable at the end of the year
+Outstanding at the commencement of the year
+50,165.4
+67,645.3
+Product and
+Sales related *
+in Million
+Year ended
+March 31, 2019
+(37,948.4)
+26,989.0
+45,371.5
+Year ended
+March 31, 2020
+Product and
+Sales related *
+46.7
+Less: Utilisation/settlement/reversal ^
+Add: Provision for the year
+Opening balance
+In respect of any present obligation as a result of a past event that could lead to a probable outflow of resources, provision
+has been made, which would be required to settle the obligation. The said provisions are made as per the best estimate
+of the management and disclosure as per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has
+been given below:
+NOTE: 60
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Add: Unwinding of discounts on provisions
+Add/(less): Foreign currency exchange fluctuation
+Closing balance
+2,407.8
+36,819.9
+(92,913.1)
+<248
+The US-FDA, on January 23, 2014, had prohibited
+using API manufactured at Toansa facility for
+manufacture of finished drug products intended for
+distribution in the U.S. market. Consequentially, the
+Toansa manufacturing facility was subject to certain
+provisions of the consent decree of permanent
+Since the US-FDA import alert at Karkhadi facility in
+March 2014, the Company remained fully committed
+to implement all corrective measures to address the
+observations made by the US-FDA with the help of
+third party consultant. The Company has completed
+all the action items to address the US-FDA warning
+letter observations issued in May 2014. It is continuing
+to work closely and co-operatively with the US-FDA
+to resolve the matter for lifting the import alert. The
+contribution of this facility to Company's revenues is
+not significant.
+b)
+a)
+NOTE: 62
+Our U.S. subsidiary, Dusa Pharmaceuticals, Inc has
+reached an agreement in principle with the U.S.
+Department of Justice and an individual to resolve
+allegations relating to the sales, marketing and
+promotion of two of its products - Levulan and Blu-u,
+as extension of a Civil Investigation Demand for
+the period January 2010 to September 2017. The
+Company has made a provision of ₹1,563.6 Million for
+this settlement.
+amount of 1,042.8 Million including interest has been
+charged in the statement of profit and loss.
+b) The Hon'ble Supreme Court of India while disposing
+various Special leave petitions filed by the Central
+Government with respect to central excise refund
+claims of various eligible industries under the
+Industrial Policies and Central Excise notifications
+in relation thereto, had held that the amendments
+to original notification restricting the central excise
+refund were clarificatory in nature. Based on the
+judgement by the Hon'ble Supreme Court of India, an
+a) The Group was a defendant in a number of putative
+class action lawsuits and individual actions brought
+by purchasers and payors, as well as a generic
+manufacturer in US alleging that the Company and
+its affiliates violated antitrust laws in connection with
+a 2005 patent settlement agreement with Cephalon
+concerning Modafinil. The cases were transferred
+to the United States District Court for the Eastern
+District of Pennsylvania for coordinated proceedings.
+Subsequently, the Company reached settlements
+in these coordinated proceedings. The Company
+accounted for an amount of ₹12,383.8 Million in the
+year ended on March 31, 2019, of which 12,143.8
+Million was disclosed as an exceptional item.
+During year ended March 31, 2020, the Company
+entered into a settlement agreement with the last
+remaining Plaintiff of these coordinated proceedings
+and the settlement amount has been grouped in
+other expenses.
+NOTE: 61 EXCEPTIONAL ITEMS INCLUDES THE
+FOLLOWING:
+^ Previous year ended March 31, 2019 includes reversal of obligation arising from a supply contract with Atlas Global Trading ("Atlas"). These
+rights and obligations were acquired by Sun Laboratories FZE a wholly owned subsidiary from Atlas in the previous year.
+* Includes provision for trade commitments, discounts, rebates, price reductions, product returns, chargeback, medicaids, contingency provision
+and clawback.
+26,989.0
+2,044.7
+Notes to the Consolidated Financial Statements
+Financial Statements
+247 »
+of such associates and joint ventures. The unrecognised share of loss of Nil (March 31, 2019: Nil) in respect of such
+associates and joint ventures.
+(11,790)
+1.5
+(years)
+450.3
+270.0-562.5
+263,680
+Weighted-
+average remaining
+contractual life
+Weighted-average
+exercise prices (*)
+Range of exercise
+prices (*)
+Stock options
+(numbers)
+March 31, 2019
+Exercisable at the end of the year
+Outstanding at the end of the year
+*
+Exercised during the year $
+270.0-562.5
+The scheme has ended and no option are outstanding at the end of the year.
+3,426.2
+270.0-562.5
+The Group does not have any material associates or joint ventures warranting a disclosure in respect of individual
+associate or joint venture. The Group's share of other comprehensive income is Nil (March 31, 2019: Nil) in respect
+NOTE :59
+Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule
+VII thereof: *214.2 Million (March 31, 2019: 241.5 Million).
+NOTE :58
+$ Weighted average share price on the date of exercise *492.6
+* Includes options exercised, pending allotment
+0.9
+562.5
+562.5
+158,739
+0.9
+562.5
+562.5
+158,739
+275.0
+(93,151)
+turnover
+324.9
+(42.2)
+Discount rate
+Assumptions:
+Plan assets as at the year end
+Benefits paid
+Employer's contribution during the year
+Actuarial gain/(loss)
+Expected return on plan assets
+Expected rate of salary increase
+Assets transferred in/Acquisitions
+Plan assets as at the beginning of the year
+Reconciliation of plan assets
+Net liability recognised in the consolidated financial statement
+Excess of planned assets over commitments not recognised
+Fair value of plan assets
+Present value of commitments (as per actuarial valuation)
+Expected return
+Interest rate guarantee
+Mortality
+Employee turnover
+Retirement age (years)
+594.5
+3,415.3
+(3,385.7)
+(3,470.6)
+4,065.1
+(Funded)
+(Funded)
+Gratuity
+Gratuity
+As at
+March 31, 2019
+March 31, 2020
+As at
+* in Million
+Annual Report 2019-20
+Pension Fund
+(Unfunded)
+As at March 31, 2020
+Reconciliation of liability/(asset) recognised in the consolidated balance sheet
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+due to change in demographic assumptions
+Actuarial (gains)/losses on obligations
+(291.0)
+(87.0)
+(294.1)
+(87.9)
+Benefits paid
+256.8
+67.7
+243.1
+67.5
+Interest cost
+345.9
+363.4
+(170.3)
+(26.0)
+106.3
+29.6
+(17.8)
+58.2
+<244
+3,415.3
+949.3
+4,065.1
+1,009.7
+Obligation as at the year end
+Acquisition Adjustment
+(81.2)
+29.2
+183.7
+22.6
+due to experience
+(223.6)
+35.7
+44.6
+due to change in financial assumptions
+* in Million
+2.8
+Year ended
+March 31, 2019
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+Financial Statements
+245 »
+58 to 60
+to 15.80%
+N.A.
+58 to 60
+to 13.45%
+N.A. In range of 8.21%
+N.A.
+Indian Assured
+Lives Morality
+(2006-08)
+to 10.00%
+N.A.
+N.A. In range of 8.00%
+Sensitivity analysis:
+(2006-08)
+The sensitivity analysis have been determined based on
+method that extrapolates the impact on defined benefit
+obligation as a reasonable change in key assumptions
+occurring at the end of the reporting period.
+Gratuity
+(Funded)
+184.8
+Year ended
+March 31, 2020
+261.5
+(237.3)
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee
+191.1
+(172.5)
+(76.3)
+85.5
+(241.0)
+271.1
+(84.7)
+95.6
+Delta effect of +1% change in discount rate
+Delta effect of -1% change in discount rate
+Impact on defined benefit obligation
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+As at March 31, 2019
+in Million
+As at March 31, 2020
+N.A.
+Indian Assured
+Lives Mortality
+Pension Fund
+(Unfunded)
+(2012-14)
+As at March 31, 2019
+3,385.7
+3,470.6
+(291.0)
+(294.1)
+404.7
+Gratuity
+(Funded)
+(26.7)
+0.3
+3,068.8
+229.9
+240.9
+3,385.7
+Gratuity
+(Funded)
+N.A
+Indian Assured
+Lives Morality
+(2012-14)
+(2.3)
+Pension Fund
+140.1
+6.50% In range of 6.10%
+Indian Assured
+Lives Mortality
+(Unfunded)
+N.A.
+to 10.00%
+N.A. In range of 7.00%
+7.10%
+to 7.50%
+N.A. In range of 7.00%
+Gratuity
+(Funded)
+N.A.
+6.50%
+to 6.50%
+7.10% In range of 7.10%
+(Funded)
+Gratuity
+N.A.
+Consolidated balance sheet of TARO Group
+Non-current assets
+Current assets
+Non-current liabilities
+Current liabilities
+As at
+March 31, 2020
+* in Million
+As at
+March 31, 2019
+62,130.2
+114,436.4
+(488.6)
+(16,800.6)
+46,813.3
+Total income
+(341.2)
+(14,980.2)
+Consolidated statement of profit and loss of TARO Group
+for the year ended March 31, 2020
+Total expenses
+Profit after tax
+Total comprehensive income for the year
+* in Million
+March 31, 2020
+Year ended
+March 31, 2019
+100,615.7
+Year ended
+Year ended
+March 31, 2020
+Notes to the Consolidated Financial Statements
+interests
+49,279.0
+Total
+Profit allocated to non-controlling
+interests
+* in Million
+Accumulated non-controlling interests
+3,856.2
+214.1
+Year ended
+March 31, 2019
+4,862.7
+561.7
+Year ended
+March 31, 2020
+Notes to the Consolidated Financial Statements
+Year ended
+March 31, 2019
+36,474.5
+2,127.9
+30,992.5
+2,142.9
+4,070.3
+5,424.4
+38,602.4
+33,135.4
+The summarised consolidated financial information of TARO Group before inter-company eliminations:
+251 >>>
+Financial Statements
+Individually immaterial subsidiaries with non-controlling
+50,823.9
+Revenue (Refer note 2 (o))
+24,992.4
+The Company had recognised total assets of
+*7,667.1 Million, liabilities of ₹4,264.9 Million and capital
+reserve of 3,174.2 Million in the previous year on a
+provisional basis in accordance with Ind AS 103. During the
+current year, the Company has not obtained any additional
+information which could lead to any change.
+252
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+NOTE :76 USE OF ESTIMATES, JUDGEMENTS
+AND ASSUMPTIONS
+The preparation of the Group's financial statements
+requires the management to make judgements,
+estimates and assumptions that affect the reported
+amounts of revenues, expenses, assets and liabilities,
+and the accompanying disclosures, and the disclosure of
+contingent liabilities. Actual results may differ from these
+estimates. Estimates and underlying assumptions are
+reviewed on an ongoing basis. Revisions to accounting
+estimates are recognised in the period in which the
+estimates are revised and in any future periods affected.
+In particular, information about significant areas of
+estimation uncertainty and critical judgments in applying
+accounting policies that have the most significant effect
+on the amounts recognised in the consolidated financial
+statements is included in the following notes:
+b)
+The business acquisition was conducted by entering into
+a share purchase agreement for cash consideration of
+*228.0 Million.
+Impairment of goodwill and intangible assets (Refer
+note 2 (g), (h) and 47)
+Information as required pursuant to Regulation 52(4) of
+SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015:
+The Company has issued listed unsecured commercial
+paper during the year.
+(a) Credit Rating and change in credit rating, if any:
+Name of Credit Rating Agency
+CRISIL
+ICRA
+Rating
+CRISIL A1+
+ICRA A1+
+a)
+Litigations (Refer note 2 (n) and note 39)
+TARO Group
+(b) Ratios and Formulae
+NOTE: 77
+29,137.2
+Pola Pharma Inc., Japan became a step down subsidiary
+of the Company with effect from January 01, 2019.
+Accordingly current year numbers includes Pola Pharma
+Inc. for the full year and hence are not comparable to the
+previous year numbers.
+NOTE: 74 RELATED PARTY DISCLOSURES (IND
+AS-24) - AS PER ANNEXURE 'B'.
+16,638.9
+20,161.1
+16,029.9
+17,149.2
+in Million
+Consolidated cash flows information of TARO Group
+Net cash generated from operating activities
+Net cash generated from / (used in) investing activities
+Net cash used in financing activities
+Dividend paid by Taro during the year US$Nil (March 31,
+2019: US$500 Million). For repurchase of ordinary shares
+done by Taro refer note 56.
+NOTE: 72
+NOTE: 75 BUSINESS COMBINATIONS
+The Board of Directors of the Company at its meeting held
+on May 25, 2018 and the shareholders and unsecured
+creditors at its respective meetings held on June 04, 2019
+had approved the Composite Scheme of Arrangement
+between the Company, Sun Pharma (Netherlands) B.V.
+and Sun Pharmaceutical Holdings USA Inc. (both being
+wholly owned subsidiaries of the Company) which inter-
+alia, envisaged spin-off w.e.f. April 01, 2017 of the specified
+investment undertaking 1 and 2 (as defined in the scheme
+of Arrangement) of the Company. On December 19,
+2019, the Hon'ble National Company Law Tribunal,
+Ahmedabad Bench, on interpretation ground that an
+outbound Demerger is not envisaged under Section 234 of
+Companies Act, 2013, did not allow the Company's petition
+for the said Composite Scheme of Arrangement. Hence no
+effect of the said scheme of Arrangement has been given in
+the consolidated financial statements.
+The Board of Directors at its meeting held on March 17,
+2020 has approved the buy-back by the Company of
+Year ended
+March 31, 2020
+Year ended
+March 31, 2019
+23,010.1
+17,986.5
+(41,189.7)
+22,081.4
+(21,131.2)
+(1,843.7)
+its equity shares from the open market through stock
+exchange mechanism as prescribed under Buy-back
+regulations at the maximum price of $425.0 per share for
+an aggregate maximum amount of $17,000.0 Million.
+NOTE: 73
+Name of Subsidiary
+Secured term loan from other parties:
+subsidiaries (TARO Group)
+(i)
+Unsecured External Commercial Borrowings
+(ECBs) has 4 loans aggregating of US$225 Million
+(March 31, 2019: US$290 Million) equivalent to
+*16,971.8 Million (March 31, 2019: 20,036.1
+Million) and 2 loan of JPY 10,317.5 Million
+(March 31, 2019 : Nil) equivalent to *7,178.8
+Million (March 31, 2019: Nil). For the ECB loans
+outstanding as at March 31, 2020, the terms of
+repayment for borrowings are as follows:
+US$25 Million (March 31, 2019: US$50 Million)
+equivalent to 1,885.8 Million (March 31, 2019
+: *3,454.5 Million). The loan was taken on
+September 20, 2012 and is repayable in 2 equal
+installments of US$25 Million each. The first
+249 »
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Unsecured
+b)
+installment of US$25 Million has been repaid in
+current year and last installment of US$25 Million
+is due on September 18, 2020.
+US$100 Million (March 31, 2019: US$100
+Million) equivalent to ₹7,543.0 Million (March 31,
+2019: 6,909.0 Million). The loan was taken on
+June 04, 2013 and is repayable in 3 installments
+viz. first installment of US$30 Million is due on
+June 01, 2020, second installment of US$30
+Million is due on December 01, 2020 and
+last installment of US$40 Million is due on
+December 01, 2021.
+US$50 Million (March 31, 2019: US$50 Million)
+equivalent to *3,771.5 Million (March 31, 2019
+: 3,454.5). The loan was taken on October 03,
+2018 and is repayable in 2 equal installments
+of US$25 Million each. The first installment
+of US$25 Million is due on October 01, 2021
+and last installment of US$25 Million is due on
+October 03, 2022.
+US$Nil (March 31, 2019: US$10 Million)
+equivalent to Nil (March 31, 2019: *690.9
+Million). The loan was taken in tranches of US$16
+Million on March 24, 2017 and US$10 Million
+on June 30, 2017. The first installment of US$16
+Million has been repaid during the year ended
+March 31, 2019 and last installment of US$10
+Million has been repaid in current year.
+US$Nil (March 31, 2019: US$30 Million)
+equivalent to Nil (March 31, 2019 : *2,072.7
+Million). The loan was taken on September 08,
+2017 and has been repaid in current year.
+US$Nil (March 31, 2019: US$50 Million)
+equivalent to Nil (March 31, 2019: 3,454.5
+h)
+i)
+d)
+Million). The loan was taken on August 11, 2015
+and is refinanced with JPY loan, as detailed in
+note (g) below.
+Term loan from banks:
+B
+As at
+March 31, 2020
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+c)
+d)
+injunction entered in January 2012 by erstwhile
+Ranbaxy Laboratories Ltd (which was merged with
+Sun Pharmaceutical Industries Ltd in March 2015). In
+addition, the Department of Justice of the USA ('US
+DOJ'), United States Attorney's Office for the District
+of New Jersey had also issued an administrative
+subpoena dated March 13, 2014 seeking information.
+The Company is continuing to fully co-operate and
+provide requisite information to the US DOJ.
+In December 2019, the USFDA inspected the Halol
+facility and issued Form 483 with 8 observations.
+Post the submission of the company's response in
+January 2020, the USFDA classified the inspection
+status as Official Action Indicated (OAI). The company
+is in continuous communication with the USFDA to
+resolve the outstanding issues from the December
+2019 inspection. The Company continues to
+manufacture and distribute products to the U.S from
+this facility. However, the OAl status normally implies
+that the USFDA may put all new approvals from the
+Halol facility on hold till the outstanding corrective
+actions are completed.
+Secured term loan from department of biotechnology
+of 108.2 Million (March 31, 2019: 108.2 Million)
+has been secured by hypothecation of movable assets
+of the Company. The loan is repayable in 10 equal half
+yearly installments commencing from December 14,
+2020, last installment is due on June 14, 2025.
+In September 2013, the USFDA had put the Mohali
+facility under import alert and was also subjected to
+certain provisions of the consent decree of permanent
+injunction entered in January 2012 by erstwhile
+Ranbaxy Laboratories Ltd (which was merged with
+Sun Pharmaceutical Industries Ltd in March 2015). In
+March 2017, the USFDA lifted the import alert and
+indicated that the facility was in compliance with
+the requirements of cGMP provisions mentioned in
+the consent decree. The Mohali facility continues
+to demonstrate sustainable cGMP compliance as
+required by the consent decree. The Company
+continues to receive approval of applications,
+manufacture and distribute products to the U.S
+from this facility.
+The Group vide its press release dated January 22, 2019,
+had announced the transition of India domestic formulations
+distribution business from Aditya Medisales Limited (AML)
+to Sun Pharma Distributors Limited (SPDL), a wholly owned
+subsidiary of the Company. During the transition phase AML
+acted as an agent of Company.
+During the current year, post completion of the transition,
+SPDL executed a business transfer agreement on
+October 07, 2019 to acquire the Pharmaceutical business
+undertaking of AML on a slump sale basis, which included
+certain receivables and payables. The net consideration
+paid by the company amounted to $629.6 Million.
+NOTE: 64
+Pursuant to the scheme of arrangement, as approved by
+the National Company Law Tribunal, Ahmedabad Bench
+on October 31, 2018, unbranded generic pharmaceutical
+undertaking of Sun Pharma Global FZE, a wholly owned
+subsidiary, was transferred to the Company w.e.f April 01,
+2017. Consequently, effect of the scheme including the tax
+impact was given in the consolidated financial statement
+in accordance with Ind AS 103 - Business Combinations in
+the previous financial years.
+NOTE: 65
+The Group continues to monitor the impact of COVID-19
+on its business, including its impact on customers,
+supply-chain, employees and logistics. Due care has
+been exercised, in concluding on significant accounting
+judgements and estimates, including in relation to
+recoverability of receivables, assessment of impairment of
+goodwill and intangibles, investments and inventory, based
+on the information available to date, while preparing the
+Group's financial statements as of and for the year ended
+March 31, 2020.
+NOTE: 66 DETAILS OF LONG-TERM
+BORROWINGS AND CURRENT MATURITIES OF
+LONG-TERM DEBT [INCLUDED UNDER OTHER
+CURRENT FINANCIAL LIABILITIES ]
+A
+NOTE: 63
+* Held by non-controlling interest
+JPY 5,317.5 Million (March 31, 2019 : JPY Nil)
+equivalent to 3,699.9 Million (March 31, 2019
+: Nil). The loan was taken on August 11, 2015
+in USD. The currency of the loan was changed
+to JPY on August 8, 2019. The loan is due for
+repayment on February 08, 2022.
+US$50 Million (March 31, 2019: US$Nil)
+equivalent to *3,771.5 Million (March 31, 2019 :
+*Nil). The loan was taken on August 29, 2019 and
+is repayable in 3 equal installments of US$16.67
+Million each. The first installment of US$16.67
+Million is due on August 30, 2021, second
+installment of US$16.67 Million is due on August
+29, 2022 and last installment of US$16.67 Million
+is due on August 29, 2023.
+NOTE: 70
+Prior to April 01, 2019, the functional currency of the
+Taro's Canadian subsidiary was the Canadian dollar
+("CAD"). Effective April 01, 2019, Taro Pharmaceuticals
+Inc (TPI) functional currency was prospectively changed
+to USD. This change was based on a factual assessment
+of the changes in the primary economic and business
+environment, in which TPI operates, which have
+evolved over time.
+As part of management's functional currency assessment,
+changes in economic facts and circumstances were
+considered. Over the years the subsidiary has centralised
+different functions, including treasury, which resulted in a
+stronger focus on the USD currency for TPI. Additionally,
+TPI has implemented budgeting in USD, whereas this was
+previously performed in CAD. Further, lately due to a shift
+in focus, TPI's cash inflows consist primarily of USD cash
+balances and less of CAD, as also reflected in the budget.
+Management re-evaluated all indicators to determine
+the functional currency of TPI. Such indicators include
+i) cash flow, ii) sales price, iii) sales market, iv) expense,
+v) financing and vi) intercompany transactions and
+arrangements. Considering all relevant facts together,
+management concluded that USD best reflects the
+currency of the primary economic environment in which
+TPI currently operates.
+NOTE: 71 DISCLOSURE OF A SUBSIDIARY THAT HAS NON-CONTROLLING INTEREST THAT IS
+MATERIAL TO THE GROUP
+Name of Subsidiary
+Taro Pharmaceutical
+Principal place of
+business
+The Parent Company holds 24.91% in the capital of
+Shimal Research Laboratories Limited. However, as
+the Parent Company does not have any 'Significant
+Influence' in Shimal Research Laboratories Limited,
+as is required under Ind AS 28 - "Investments in
+Associates and Joint Ventures", the said investment
+in Shimal Research Laboratories Limited has not been
+consolidated as an "Associate Entity".
+Country of
+incorporation
+As at
+March 31, 2020
+As at
+March 31, 2019
+United States of
+America
+Israel
+Beneficial ownership
+Voting power
+22.90%
+23.46%
+15.27%
+Nature*
+JPY 5,000.0 Million (March 31, 2019: JPY Nil)
+equivalent to *3,478.9 Million (March 31, 2019
+: Nil). The loan was taken on August 29, 2019
+and is repayable in 3 equal installments of JPY
+1,667 Million each. The first installment of JPY
+1,667 Million is due on August 30, 2021, second
+installment of JPY 1,667 Million is due on August
+29, 2022 and last installment of JPY 1,667 Million
+is due on August 29, 2023.
+Sun Pharma Global FZE, a subsidiary of the Parent
+Company holds 23.35% in the capital of Enceladus
+Pharmaceutical B.V. However, as Sun Pharma
+Global FZE does not have any 'Significant Influence'
+in Enceladus Pharmaceutical B.V., as is required
+under Ind AS 28 - "Investments in Associates and
+Joint Ventures", the said investment in Enceladus
+Pharmaceutical B.V. has not been consolidated as an
+"Associate Entity".
+a)
+The Company has not defaulted on repayment
+of loan and interest payment thereon during the
+year. The aforementioned unsecured ECBs are
+availed from various banks at floating rate linked
+to Libor (range from 1.79% -2.14% as at March
+31, 2020) and secured loan from department
+of biotechnology have been availed at a
+range from 2% to 3%.
+NOTE: 67 DETAILS OF SECURITIES FOR CURRENT BORROWINGS ARE AS UNDER:
+Borrowings taken by overseas subsidiaries are supported by the letters of awareness issued by the Parent Company.
+NOTE: 68 LOANS/ADVANCES DUE FROM AN ASSOCIATE
+Interest bearing with specified repayment schedule:
+Medinstill LLC
+Considered good
+Loans have been granted to the above entity for the purpose of its business.
+250
+b)
+in Million
+As at
+March 31, 2019
+377.2
+377.2
+283.3
+283.3
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+NOTE: 69
+As at
+March 31, 2020
+As at
+March 31, 2019
+(0.6) (2,906.5)
+0.18
+46 Sun Pharma Laboratorios, S.L.U.
+(Formerly known as Laboratorios
+Ranbaxy, S.L.U.)
+0.1
+504.6
+0.2
+57.1
+0.3
+177.9
+0.1
+57.1
+47 Ranbaxy (U.K.) Limited
+48 Ranbaxy Holdings (U.K.) Limited
+49 Sun Pharmaceutical Holding
+USA Inc (Consolidated with its
+Subsidiaries and its Associate)
+0.3
+1,531.4
+0.2
+69.1
+0.1
+69.1
+0.6 2,868.0
+14.6 71,713.8
+(0.0)
+(0.6)
+(0.0)
+(0.6)
+20.8 7,815.3#
+177.9
+2.8
+0.5
+0.3
+2019-20
+Share in other
+comprehensive income
+(OCI)
+2019-20
+Share in total
+comprehensive income
+(TCI)
+2019-20
+Name of the entity
+No.
+As % of
+consolidated in Million
+net assets
+As % of
+consolidated
+profit or
+(loss)
+As % of
+As % of
+* in Million
+consolidated in Million
+OCI
+consolidated in Million
+TCI
+44 Ranbaxy South Africa (Pty) Ltd.
+(Consolidated with its Subsidiary)
+0.2
+761.9
+0.0
+4.4
+0.0
+4.4
+45 Ranbaxy Pharmaceuticals (Pty)
+Ltd.
+1,656.2
+522.1
+14.9
+8,337.4#
+(10.8) (4,070.3)
+(15.1) (2,789.2)
+(12.2) (6,859.5)
+Intercompany Elimination and
+(135.7) (666,597.1)
+(6.7) (2,588.5)
+129.2
+23,790.5
+37.8 21,202.0
+Consolidation Adjustments
+Total
+100.0 491,246.9
+100.0
+37,649.3
+100.0 18,419.1
+100.0 56,068.4
+# Includes share of loss and share of TCI, from its associate of $247.8 Million
+* Includes share of loss and share of TCI, from a joint venture of *10.0 Million
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the Parent Company, its subsidiaries, associates and joint
+ventures are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company
+eliminations/consolidation adjustments.
+257 >>
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+7.9 38,602.4
+Non controlling interest in all
+subsidiaries
+737.5
+1.3
+50 Ranbaxy (Thailand) Co., Ltd.
+51 Sun Pharmaceuticals Morocco
+LLC
+0.0
+213.3
+(0.0)
+(18.4)
+0.0
+14.3
+0.2
+60.8
+(0.0)
+(18.4)
+2019-20
+0.1
+52 "Ranbaxy Pharmaceuticals
+0.1
+293.4
+0.1
+29.5
+0.1
+29.5
+Ukraine" LLC
+53 Pola Pharma Inc. (Consolidated
+with its Subsidiary)
+2.0
+737.5
+60.8
+S.
+Share in profit or (loss)
+Net Assets, i.e., total
+assets minus total
+liabilities
+(0.0)
+(23.0)
+(0.0)
+(2.6)
+(0.0)
+(2.6)
+35 Office Pharmaceutique Industriel
+0.0
+103.9
+0.0
+1.0
+0.0
+1.0
+Et Hospitalier
+36 Basics GmbH
+0.2 1,173.2
+0.1
+55.3
+37 Ranbaxy Ireland Limited
+0.1
+577.1
+(0.0)
+(3.8)
+34 Rexcel Egypt LLC
+(51.5)
+(0.1)
+(51.5)
+(130.4)
+0.3
+124.4
+0.2
+124.4
+31 Ranbaxy Farmaceutica Ltda.
+(0.3)
+(1,379.3)
+(1.1)
+(397.4)
+(0.7)
+38
+(397.4)
+0.0
+209.0
+(0.1)
+(47.8)
+(0.1)
+(47.8)
+(Formerly known as Ranbaxy
+Pharmaceuticals Canada Inc.)
+33 Sun Pharma Egypt Ltd LLC
+0.0
+236.1
+(0.1)
+32 Sun Pharma Canada Inc.
+for the year ended March 31, 2020
+Ranbaxy Italia S.P.A.
+29.3
+4.5
+2,524.5
+42 AO Ranbaxy
+0.2
+1,117.3
+0.1
+38.9
+0.1
+38.9
+43 JSC Biosintez
+0.1
+514.4
+(0.6)
+(221.8)
+(0.4)
+(221.8)
+256
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+(Annexure 'A')
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint
+ventures as per Schedule III of Companies Act, 2013:
+1.3
+0.0
+2,523.2
+6.7
+0.0
+16.4
+39 Sun Pharmaceutical Industries
+S.A.C.
+(0.0)
+(167.0)
+0.0
+12.7
+0.1
+55.3
+(0.0)
+(3.8)
+0.0
+0.0
+0.0
+12.7
+40 Ranbaxy (Poland) SP. Z O.O.
+0.0
+221.5
+0.0
+17.1
+0.0
+17.1
+41 Terapia SA
+1.2 5,727.0
+16.4
+(Annexure 'A')
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint
+ventures as per Schedule III of Companies Act, 2013:
+Net Assets, i.e., total assets
+minus total liabilities
+1,385.7
+0.9
+236.6
+0.6
+236.6
+2
+Sun Farmaceutica Do Brasil Ltda.
+(0.6)
+(2,476.3)
+(1.6)
+(413.9)
+(1.0)
+(413.9)
+3
+Sun Pharma De Mexico S.A. DE
+C.V.
+0.2
+964.5
+0.9
+238.1
+0.6
+238.1
+4
+SPIL De Mexico S.A. DE C.V.
+0.3
+Sun Pharmaceutical (Bangladesh)
+Limited
+1
+Foreign
+0.3
+1,350.3
+(0.8)
+(203.1)
+0.0
+0.1
+(0.5)
+(203.0)
+11
+Sun Pharma Distributors Limited
+0.0
+0.0
+1.4
+(0.1)
+(0.0)
+(0.1)
+12 Caraco Pharmaceuticals Private
+(0.0)
+(0.1)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+Limited
+(0.0)
+Zenotech Laboratories Limited
+0.2
+Sun Pharmaceutical Peru S.A.C.
+(1.4)
+(382.5)
+(0.9)
+(382.5)
+0.0
+73.7
+13.5 60,425.2
+2.0
+535.8
+(0.6) (158.5)
+27.9 7,447.3
+1.3
+535.8
+7.8 1,191.2
+(0.4) (158.5)
+20.5
+8,638.5
+11 Sun Pharma (Netherlands) B.V
+(Formerly Ranbaxy (Netherlands)
+B.V.)
+12
+13
+Alkaloida Chemical Company Zrt.
+Sun Pharmaceuticals UK Limited
+10.6
+47,552.6
+81.8 21,811.6
+(0.0)
+(0.0)
+258
+51.9 21,811.6
+(0.0)
+(0.0)
+Industries Ltd. and its
+(2,482.5)
+1,412.0
+0.3
+(0.6)
+Ranbaxy Pharmacie Generiques
+Ranbaxy (Malaysia) SDN. BHD.
+10 Ranbaxy Nigeria Limited
+(0.0)
+(158.9)
+(0.0)
+(4.6)
+(0.0)
+(4.6)
+OOO "Sun Pharmaceutical
+(0.0)
+(203.6)
+(0.1)
+(25.9)
+156
+(0.1)
+Industries" Limited
+7
+Sun Pharma De Venezuela, C.A.
+0.0
+0.0
+(0.0)
+(7.9)
+(0.0)
+(7.9)
+8
+9
+(25.9)
+(0.0)
+10
+(1.0)
+Green Eco Development Centre
+Limited
+0.0
+0.9
+(0.0)
+(0.6)
+(0.0)
+(0.6)
+2
+Sun Pharma Laboratories Limited
+43.5
+194,396.9
+12.3
+3,280.9
+0.2
+36.1
+7.9
+3,317.0
+3
+Faststone Mercantile Company
+0.0
+12.7
+0.0
+1.2
+1
+Indian
+Subsidiaries
+10,003.4
+Share in profit or (loss)
+S.
+2018-19
+2018-19
+Share in other
+comprehensive income
+(OCI)
+2018-19
+Share in total
+comprehensive income
+(TCI)
+2018-19
+Name of the entity
+No.
+As % of
+consolidated in Million
+net assets
+As % of
+consolidated
+profit or
+(loss)
+0.0
+As % of
+* in Million
+consolidated in Million consolidated in Million
+OCI
+TCI
+Parent Entity - Sun Pharmaceutical
+Industries Limited
+51.1
+228,436.1
+30.7
+8,166.0
+11.9
+1,837.4
+23.8
+As % of
+(400.8)
+1.2
+4
+0.3
+(0.0)
+(0.1)
+0.0
+0.3
+Limited
+8
+Universal Enterprises Private
+0.0
+5.3
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+Limited
+9
+Sun Pharmaceutical Medicare
+Limited
+(0.1)
+(484.7)
+(1.5)
+(402.1)
+0.0
+1.3
+0.0
+11.2
+0.0
+Softdeal Trading Company Private
+Neetnav Real Estate Private
+0.7
+2,921.3
+0.0
+0.5
+0.0
+0.5
+Limited
+5
+Realstone Multitrade Private
+0.0
+Private Limited
+11.8
+0.3
+0.0
+0.3
+Limited
+6
+Skisen Labs Private Limited
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+7
+0.0
+30 Sun Pharma ANZ Pty Ltd
+14.1
+0.0
+1.1
+0.0
+1.1
+Limited
+5
+Realstone Multitrade Private
+0.0
+12.1
+0.0
+0.3
+0.0
+0.3
+Limited
+6
+Skisen Labs Private Limited
+(0.0)
+(0.2)
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+7
+Softdeal Trading Company Private
+0.0
+2,922.4
+0.6
+Neetnav Real Estate Private
+(0.0)
+(0.0)
+(0.0)
+(0.9)
+(0.0)
+(0.9)
+2
+Sun Pharma Laboratories Limited
+41.8 205,218.3
+43.1 16,217.3
+(0.5)
+0.0
+(84.7)
+16,132.6
+3
+Faststone Mercantile Company
+0.0
+13.0
+0.0
+0.3
+0.0
+0.3
+Private Limited
+4
+28.8
+Green Eco Development Centre
+Limited
+11.1
+(0.1)
+Limited
+11
+Zenotech Laboratories Limited
+0.3 1,278.3
+(0.2)
+(72.5)
+0.0
+0.5
+(0.1)
+(72.0)
+12
+Sun Pharma Distributors Limited
+13 Caraco Pharmaceuticals Private
+Limited
+0.1
+674.8
+1.8
+674.4
+(0.0)
+(1.0)
+1.2
+673.4
+(0.0)
+(0.1)
+(0.0)
+(1,396.7)
+(2.5)
+(0.4)
+(0.0)
+(0.0)
+(0.1)
+Limited
+8
+Universal Enterprises Private
+0.0
+5.2
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+Limited
+Realstone Infra Limited
+0.0
+2.2
+(0.0)
+(0.3)
+(0.0)
+(0.3)
+10
+Sun Pharmaceutical Medicare
+(0.4) (1,881.4)
+(3.7) (1,396.3)
+9
+(0.1)
+1
+Subsidiaries
+INE044A14559
+INE044A14542
+INE044A14567
+Due Date of
+Payment
+Actual Date of
+Repayment
+* in Million
+Redemption
+Amount
+17-Feb-20
+18-Mar-20
+17-Feb-20
+18-Mar-20
+5,000.0
+8,000.0
+11-May-20
+N/A
+5,000.0
+17-Jun-20
+N/A
+5,000.0
+(d) Capital Redemption Reserve and Net worth
+Particulars
+Capital Redemption Reserve
+As at
+March 31, 2020
+7.5
+448,919.0
+INE044A14534
+ISIN NO
+Details of due dates and actual dates and amounts of repayment of listed unsecured commercial paper:
+(c)
+0.25
+0.40
+0.32
+(ii) Debt Service Coverage Ratio = Earnings before Finance Costs, Exceptional Item and Tax /
+(Finance Costs + Principal Repayment for borrowings made during the period)
+(iii) Interest Service Coverage Ratio = Earnings before Finance Costs, Exceptional Item and Tax
+/ Finance Costs
+(iv) Asset cover = Total Assets - Intangible Assets - Current Liabilities excluding Short-term
+Borrowings and current maturities of Long-term Borrowings) / (Long-term Borrowings +
+Short-term Borrowings + current maturities of long term borrowing).
+Note: The above borrowings and interest payments do not include payment related to leases
+Alternative Ratios and Formulae
+(i) Debt service coverage ratio = Earnings before finance costs, depreciation and exceptional
+item / (Finance costs + Short-term borrowings + Current maturities of long-term
+borrowings)
+(ii) Debt service coverage ratio = Earnings before finance costs, exceptional item and Tax /
+(Finance costs + Principal repayment for long term borrowings made during the period)
+Note: The above borrowings and interest payments do not include payment related to leases.
+20.09
+10.36
+Net worth
+5.76
+As at
+March 31, 2020
+As at
+March 31, 2019
+1.05
+0.71
+5.05
+4.84
+253≫
+Financial Statements
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+4.24
+Indian
+NOTE : 78
+As per our report of even date
+2019-20
+2019-20
+Share in other
+comprehensive income
+(OCI)
+2019-20
+Share in total
+comprehensive income
+(TCI)
+2019-20
+Name of the entity
+No.
+As % of
+consolidated in Million
+net assets
+As % of
+consolidated
+profit or
+(loss)
+As % of
+As % of
+in Million consolidated in Million
+OCI
+consolidated in Million
+TCI
+Parent Entity - Sun Pharmaceutical
+Industries Limited
+49.7 243,962.2
+85.3
+32,111.4
+(4.4)
+(808.0)
+55.8
+31,303.4
+S.
+Share in profit or (loss)
+Net Assets, i.e., total
+assets minus total
+liabilities
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint
+ventures as per Schedule III of Companies Act, 2013:
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No. : 105754
+Pune, May 27, 2020
+254
+in Million
+As at
+March 31, 2019
+7.5
+Figures for previous periods have been regrouped / reclassified wherever considered necessary.
+410,365.1
+SUNIL R. AJMERA
+Company Secretary
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+The Transformation Journey
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Annual Report 2019-20
+(Annexure 'A')
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+(i) Debt Equity Ratio = (Long-term Borrowings + Short-term Borrowings + current maturities
+of long term borrowings)/(Total Equity)
+(0.0)
+Foreign
+(20.3)
+(0.0)
+(20.3)
+18 Sun Pharma Global FZE
+(Consolidated with a Joint
+venture)
+13.4
+66,062.3
+(88.3) (33,239.4)*
+(12.8) (2,368.2)
+(63.5) (35,607.6)*
+19 Sun Pharmaceuticals SA (Pty) Ltd.
+0.0
+1.0
+0.0
+1.2
+20 Sun Pharma Philippines, Inc.
+(0.1)
+(545.2)
+0.0
+18.4
+21 Sun Pharmaceuticals Korea Ltd.
+0.0
+3.9
+(0.0)
+(0.1)
+(50.1)
+(0.0)
+17 Sun Pharmaceuticals France
+(396.0)
+14 Aditya Acquisition Company Ltd.
+0.0
+10.7
+(0.0)
+(5.5)
+15 Sun Pharmaceutical Industries
+(Europe) B.V.
+0.0
+38.7
+0.1
+28.6
+(0.4)
+(0.7)
+(0.0)
+(5.5)
+0.1
+28.6
+16 Sun Pharmaceuticals Germany
+GmbH
+(0.0)
+(137.1)
+0.1
+51.0
+0.1
+51.0
+(396.0)
+(1.1)
+23
+Sun Pharma Japan Ltd.
+(Consolidated with its Subsidiary)
+2.2
+(0.9)
+(518.8)
+(3.3) (609.0)
+28.6 16,029.9
+27 Sun Pharma Switzerland Ltd.
+0.0
+9.3
+(0.0)
+(1.7)
+(0.0)
+(1.7)
+28 Sun Pharma Holdings
+48.2 236,744.7
+(0.1)
+(41.9)
+(0.1)
+(41.9)
+29 Sun Pharma East Africa Limited
+(0.0)
+(140.4)
+0.0
+14.1
+0.0
+261.8
+0.5
+16.2
+24 Sun Pharma HealthCare FZE
+25 Sun Laboratories FZE
+26 Taro Pharmaceutical Industries
+Ltd. (TARO) (Consolidated with its
+Subsidiaries)
+0.0
+16.2
+0.6 2,730.6
+0.7
+261.8
+0.0
+2.2
+(0.1)
+22 Sun Global Development FZE
+(712.3)
+(518.8)
+32.4 159,277.4
+44.2
+16,638.9
+0.0
+1.2
+0.0
+18.4
+(0.0)
+(0.4)
+0.0
+(1.4)
+(0.1)
+715.2
+13 Sun Pharmaceutical Industries
+(Australia) Pty Limited
+(0.0)
+(173.6)
+(0.0)
+(5.8)
+(0.0)
+(5.8)
+6
+OOO "Sun Pharmaceutical
+(0.0)
+(222.7)
+(0.1)
+(43.9)
+(0.1)
+(43.9)
+Industries" Limited
+7
+Sun Pharma De Venezuela, C.A.
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+Sun Pharmaceutical Peru S.A.C.
+5
+0.2
+0.0
+1
+Sun Pharmaceutical (Bangladesh)
+Limited
+0.4 1,806.0
+0.8
+287.6
+0.5
+287.6
+2
+Sun Farmaceutica Do Brasil Ltda.
+(0.5) (2,670.2)
+(1.9)
+8
+(698.0)
+(698.0)
+3
+Sun Pharma De Mexico S.A. DE
+C.V.
+0.2
+961.9
+0.3
+130.3
+0.2
+130.3
+4
+SPIL De Mexico S.A. DE C.V.
+(1.2)
+0.1
+Sun Pharma France (Formerly
+(235.3)
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+(Annexure 'A')
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint
+ventures as per Schedule III of Companies Act, 2013:
+Net Assets, i.e., total
+assets minus total
+liabilities
+Share in profit or (loss)
+S.
+Name of the entity
+No.
+2019-20
+2019-20
+Share in other
+comprehensive income
+(OCI)
+2019-20
+Share in total
+comprehensive income
+(TCI)
+2019-20
+As % of
+consolidated in Million
+net assets
+As % of
+consolidated
+profit or
+As % of
+As % of
+in Million consolidated in Million
+OCI
+consolidated in Million
+TCI
+(loss)
+Notes to the Consolidated Financial Statements
+Financial Statements
+255 >>>
+344.1
+(0.4)
+(235.3)
+known as Ranbaxy Pharmacie
+Generiques)
+9
+Ranbaxy (Malaysia) SDN. BHD.
+0.2
+972.5
+10 Ranbaxy Nigeria Limited
+11 Sun Pharma (Netherlands) B.V
+12 Alkaloida Chemical Company Zrt.
+(0.6)
+(0.1) (385.5)
+13.4 65,582.0
+1.4 545.1
+(1.3) (504.4)
+8.4 3,148.9
+0.9
+1.0
+545.1
+(0.9)
+(504.4)
+4.3
+765.2
+7.0
+3,914.1
+344.1
+0.6
+10.6 52,284.9
+15.64%
+0.2
+To consider and, if thought fit, to pass the
+following resolution as a Special Resolution:
+"RESOLVED THAT further to the resolutions passed
+at the 25th Annual General Meeting of the Company
+held on September 26, 2017 for remuneration
+payable to Mr. Dilip S. Shanghvi, Managing Director
+(DIN:00005588), and in partial modification to the
+Agreement dated September 28, 2017 entered into
+between Mr. Dilip S. Shanghvi and the Company
+for his re-appointment as Managing Director and
+pursuant to the provisions of Sections 197, 198
+and other applicable provisions, if any, of the
+Companies Act, 2013 ('the Act') read with Schedule
+V to the Act (including any statutory modification(s)
+or re-enactment(s) thereof for the time being in
+force), and applicable provisions of the SEBI (Listing
+Obligations and Disclosure Requirements Regulations),
+2015, and subject to such other permissions,
+sanction(s) as may be necessary under law, the consent
+of the Members of the Company, be and is hereby
+accorded for remuneration to be paid to Mr. Dilip S.
+Shanghvi, Managing Director of the Company for a
+period of 2 (Two) years with effect from April 1, 2021
+to March 31, 2023, that is, upto the expiry of his
+present term of office, including the remuneration to
+be paid to him in the event of loss or inadequacy of
+profits in any financial year during the aforesaid period,
+as stated below, as per draft revised Agreement,
+proposed to be entered into between Mr. Dilip S.
+Shanghvi and the Company which is hereby specifically
+sanctioned with the liberty to the Board of Directors
+to alter, vary and modify the terms and conditions of
+the remuneration, in such manner as may be agreed
+Rent expense / payment towards lease liabilities
+44.3
+22.8
+Others
+44.3
+22.8
+Lease rental and hire charges (Income)
+1,530.4
+69.2
+1,530.4
+69.2
+286.8
+63.8
+286.8
+63.8
+67.8
+320.5
+67.8
+320.5
+7.8
+0.1
+7.8
+7.8
+61.4
+Others
+Unconsolidated subsidiary
+Donation
+25.1
+29.1
+246.2
+424.2
+Relatives of Key management personnel
+Key management personnel
+453.3
+Remuneration/ compensation
+230.8
+Associate
+8.8
+Others
+239.6
+Advance given
+7.8
+Others
+110.0
+217.1
+110.1
+45.5
+Joint venture
+1,144.2
+1,388.3
+Others
+1,248.6
+1,433.8
+Receiving of service
+277.4
+5.3
+Others
+277.4
+5.3
+Sale of property, plant and equipment and other intangible assets
+73,709.0
+101.1
+Others
+73,709.0
+101.1
+29.3
+Associate
+75.1
+Reimbursement of expenses - Paid
+217.1
+15.9
+27.0
+3.9
+21.7
+478.8
+Others
+Interest income
+Associate
+123.8
+Loan given
+Reimbursement of expenses - Received
+Unconsolidated subsidiary
+Others
+Rendering of service
+Associates
+Joint venture
+Others
+41.5
+505.8
+Others
+Revenue from contracts with customers, net of returns
+54.3
+7.1
+FORM AOC - 1
+PART "A": Subsidiaries
+<264
+263 »
+The sales to and purchases from related parties are made on an arm's length basis. Outstanding trade balances at the year-
+end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related
+party receivables or payables.
+Key Management Personnel (KMP) and relatives of KMP who are under the employment of the Company are entitled to
+post employment benefits and other long term employee benefits recognised as per Ind AS 19 - 'Employee Benefits'. As
+these employee benefits are lump sum amount provided on the basis of actuarial valuation, the same is not included above
+and there is no Share-based payments to key management personnel and relatives of KMP.
+1,147.6
+1,233.8
+8.7
+1,156.3
+1,233.8
+73.4
+73.4
+283.3
+377.2
+283.3
+377.2
+0.5
+0.5
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/ joint ventures
+0.5
+* in Million
+Sr
+29.03.2001
+Sun Pharmaceutical (Bangladesh) Limited
+2
+12.11.2010
+Green Eco Development Centre Limited
+1
+Dividend Shareholding
+Proposed % of
+Profit/
+(Loss) after
+Taxation
+Provision
+for Taxation
+Profit
+/ (Loss)
+before
+Taxation
+Turnover
+Investment
+Other than
+Investment
+in Subsidiary
+Total
+Total
+Assets Liabilities
+Reserve
+Rate Capital
+Date of
+acquisition Reporting
+of
+Currency
+subsidiary
+No
+Name of the Subsidiary Company
+Financial Statements
+0.5
+0.9
+128.0
+Associate
+Loan given
+Others
+Security deposit given
+Relatives of Key management personnel
+Key management personnel
+Associates
+Joint venture (March 31, 2019: 48,558)
+Others
+Payables
+Others
+Receivables
+"
+Ind AS-24 - " Related Party Disclosures'
+Balance outstanding as at end of the year
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+<262
+75.0
+Lease Liability
+Others
+Advance (includes capital and supply of goods/services)
+Others
+133.2
+0.9
+0.0
+0.1
+225.2
+314.6
+355.0
+447.9
+6,091.6
+48.8
+589.8
+589.8
+March 31, 2019
+March 31, 2020
+As at
+As at
+*In Million
+(Annexure 'B')
+Annual Report 2019-20
+Associates
+6,091.6
+629.6
+Others (Refer note 63)
+629.6
+0.0
+33.5
+0.1
+(39.8)
+(0.0)
+3.2
+0.0
+219.1
+0.0
+57 Ranbaxy (Thailand) Co., Ltd.
+58 Sun Pharmaceuticals Morocco
+LLC
+USA Inc (Consolidated with its
+Subsidiaries and its Associate)
+13.1 5,510.6#
+(1.5) (230.9)
+21.5 5,741.5#
+57,593.1
+12.9
+56 Sun Pharmaceutical Holding
+(0.0)
+(0.0)
+3.2
+(0.0)
+0.1
+59 "Ranbaxy Pharmaceuticals
+(16.2) (6,824.4)
+(9.1) (1,400.0)
+(20.4) (5,424.4)
+7.4 33,135.4
+Non controlling interest in all
+subsidiaries
+154.8
+0.4
+154.8
+0.6
+3,514.2
+0.8
+60 Pola Pharma Inc. (Consolidated
+with its Subsidiary)
+Ukraine" LLC
+82.4
+0.2
+82.4
+0.3
+245.8
+0.1
+33.5
+(0.0)
+55 Ranbaxy Europe Limited
+0.6
+Be-Tabs Investments (Pty) Ltd.
+51
+178.1
+0.4
+178.1
+0.7
+1,702.3
+0.4
+50 Ranbaxy Pharmaceuticals (Pty)
+Ltd.
+(Consolidated with its Subsidiary)
+(99.9)
+(0.2)
+(99.9)
+(0.4)
+854.5
+0.2
+49 Ranbaxy South Africa (Pty) Ltd.
+(151.9)
+(0.4)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+0.0
+0.6
+0.0
+2,775.3
+0.6
+54 Ranbaxy Holdings (U.K.) Limited
+60.1
+0.1
+60.1
+Intercompany Elimination and
+0.2
+0.3
+53 Ranbaxy (U.K.) Limited
+77.4
+0.2
+77.4
+0.3
+415.5
+0.1
+52 Laboratorios Ranbaxy, S.L.U.
+1,414.1
+(143.3) (641,086.2)
+(111.1) (29,652.0)
+116.8 17,988.3
+Notes to the Consolidated Financial Statements
+Financial Statements
+261 >>
+* Solares Therapeutic Private Limited and Virtuous Finance Private Limited have been amalgamated with Shanghvi Finance Private Limited w.e.f.
+October 23, 2018.
+Foundation for Disease Elimination and Control of India
+Unconsolidated Subsidiary
+Dr. Py Institute LLC
+f
+Medinstill Development LLC
+Medinstill LLC
+Associates
+Artes Biotechnology GmbH
+e
+Joint Venture
+d
+United Medisales Private Limited
+Suraksha Asset Reconstruction Private Limited
+Sun Pharma Advanced Research Company Limited.
+Sun Petrochemicals Private Limited
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2020
+Ind AS-24 - "Related Party Disclosures
+"
+1.7
+1,035.2
+34.0
+1,036.9
+34.0
+309.2
+202.0
+309.2
+202.0
+Sidmak Laboratories (India) Private Limited
+March 31, 2019
+Year ended
+March 31, 2020
+In Million
+(Annexure 'B')
+Acquired on slump sale basis
+Associates
+Purchase of property, plant and equipment and other intangible assets
+Others
+Others
+Purchase of goods
+Details of related party transaction:
+Year ended
+3
+Shantilal Shanghvi Foundation
+Ramdev Chemicals Private Limited (upto 25.04.2019)
+a
+Names of related parties where there are transactions and description of relationships
+Ind AS-24 - "Related Party Disclosures"
+(Annexure 'B')
+Annual Report 2019-20
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+<260
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the Parent Company, its subsidiaries, associates and joint
+ventures are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company
+eliminations/consolidation adjustments.
+* Includes share of loss and share of TCI, from a joint venture of *7.5 Million
+# Includes share of loss and share of TCI, from its associate of *140.5 Million
+100.0 42,054.1
+100.0 15,399.9
+100.0 26,654.2
+100.0 447,226.0
+Total
+Consolidation Adjustments
+(27.7) (11,663.7)
+Key Management Personnel (KMP)
+Dilip Shantilal Shanghvi
+Sudhir Vrundavandas Valia
+Sailesh Trambaklal Desai
+PV Power Technologies Private Limited
+Makov Associates Limited
+Fortune Integrated Assets Finance Limited
+Dhendai Tea and Industries Private Limited
+Asepco Solutions Private Limited
+Alfa Infraprop Private Limited
+Others (Entities in which the KMP and relatives of KMP have control or significant influence)
+Aditya Medisales Limited
+C
+Vidhi Shanghvi
+Shanghvi Finance Private Limited*
+Aalok Shanghvi
+Wholetime Director (DIN: 00179072)
+Chairman and Non-Executive Director (Non- Independent)
+(DIN: 05299764)
+Wholetime Director (DIN: 00005443)
+time Director to Non-Executive Director on May 29, 2019) and
+Non-Independent Director (DIN : 00005561)
+Non-Executive Director (Designation changed from Whole-
+Managing Director (DIN: 00005588)
+Relatives of Key Management Personnel
+Kalyanasundaram lyer Natesan Subramanian
+Israel Makov
+b
+Sun Pharmaceutical Industries, Inc.
+14.06.2011
+INR 1.00
+BDT 0.89
+USD 75.43
+Total
+Total
+Assets Liabilities
+Rate Capital Reserve
+Date of
+acquisition Reporting
+of
+Currency
+subsidiary
+No
+Name of the Subsidiary Company
+Sr
+Annual Report 2019-20
+The Transformation Journey
+* in Million
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint ventures
+FORM AOC - 1
+PART "A": Subsidiaries
+100.00%
+145.2
+160.4
+100.00%
+555.8
+(105.5)
+450.3
+305.6
+Investment
+Other than
+Investment
+in Subsidiary
+3,112.8
+Profit
+/ (Loss)
+before
+2,922.3
+12.0
+0.1
+INR 1.00
+01.04.2012
+37 Realstone Multitrade Private Limited
+0.1
+INR 1.00
+01.04.2012
+12.9
+0.1
+INR 1.00
+35 Faststone Mercantile Company Private Limited 01.04.2012
+36 Neetnav Real Estate Private Limited
+Taxation
+Taxation
+Dividend Shareholding
+for Taxation
+Proposed % of
+Profit/
+(Loss) after
+Provision
+Turnover
+996.4
+9,917.2 10,913.7
+7,864.0
+77.10%
+77.10%
+100.00%
+(2.1)
+18,423.1
+11,683.7
+100.00%
+16,217.3
+2,796.2
+(0.7)
+159.4
+4,219.2
+(192.8)
+19,013.5
+(2.8)
+7,440.9 19,185.2 18,582.5
+71,566.4 26,839.7 15,902.9
+573.1 36,533.0
+553.7
+51.3 158,643.1 163,340.5
+4,646.1
+USD 75.43 28,105.8 107,666.6 140,963.0 5,190.6
+USD 75.43
+10.9 (451.3) 35,249.4 35,689.8
+USD 75.43
+28,110.9 28,111.0
+EURO 82.93
+USD 75.43
+20.09.2010
+32 Taro International Ltd.
+1.5
+20.09.2010
+31 Taro Pharmaceuticals Europe B.V.
+20.09.2010
+30 Taro Pharmaceuticals North America, Inc.
+20.09.2010
+29 Taro Pharmaceuticals U.S.A., Inc.
+746.5
+77.10%
+0.2
+4.8
+1,302.0 1,596.3
+33 Dusa Pharmaceuticals, Inc.
+77.10%
+271.0
+79.9
+350.9
+2,057.2
+77.10%
+0.3
+-
+0.3
+13.0
+3,078.1
+77.10%
+-
+(1.0)
+0.1
+3.1
+294.3
+11,818.5 15,211.9 3,392.6
+0.8
+0.1
+USD 75.43
+05.02.2013
+34 Mutual Pharmaceutical Company Inc.
+USD 75.43
+19.12.2012
+(1.0)
+0.4
+0.1
+0.3
+7,296.1 9,110.6 1,814.5
+USD 75.43
+15.07.2014
+100.00%
+(44.5)
+(44.5)
+919.3
+USD 75.43 258,034.2 (21,432.8) 237,520.7
+06.08.2015
+44 PI Real Estate Ventures, LLC
+Pharmalucence, Inc.
+43
+42 Sun Pharma Holdings
+100.00%
+(1.7)
+(1.7)
+40.8
+1.6
+10.9
+3,015.6
+846.2
+44.2
+802.0
+404.3
+268
+EURO 82.93
+UAH 2.74
+MAD 7.48
+PEN 21.94
+GBP 93.02
+EURO 82.93
+24.03.2015
+24.03.2015
+24.03.2015
+24.03.2015
+51 Sun Pharma France (Formerly known as
+Ranbaxy Pharmacie Generiques)
+50 Ranbaxy Holdings (U.K.) Limited
+49 Sun Pharmaceutical Industries S.A.C.
+48 Sun Pharmaceuticals Morocco LLC
+24.03.2015
+1.5
+47 "Ranbaxy Pharmaceuticals Ukraine" LLC
+0.1
+KES 0.72
+13.06.2014
+Sun Pharma East Africa Limited
+46 Basics GmbH
+45
+2,417.8
+USD 75.43
+15.07.2014
+100.00%
+24.03.2015
+20.09.2010
+7.8
+10.06.2013
+0.3
+0.1
+(163.8)
+163.6
+INR 1.00
+01.04.2012
+38 Skisen Labs Private Limited
+100.00%
+0.3
+0.1
+0.4
+12.1
+100.00%
+1.1
+0.4
+1.5
+1.6
+155.7
+100.00%
+0.0
+(0.1)
+(0.1)
+100.00%
+41 Sun Pharma Switzerland Ltd.
+100.00%
+(0.1)
+(0.1)
+3.0
+8.3
+0.8
+4.5
+INR 1.00
+CHF 78.24
+31.08.2012
+100.00%
+(0.1)
+(0.1)
+11.1
+11.0
+0.1
+INR 1.00
+01.04.2012
+39 Softdeal Trading Company Private Limited
+40 Universal Enterprises Private Limited
+(151.9)
+28 Taro Pharmaceuticals Inc.
+20.09.2010
+9
+100.00%
+5.6
+2.5
+8.1
+179.6
+20.2
+(159.4)
+RUB 0.96
+12.11.2007
+OOO "Sun Pharmaceutical Industries" Limited
+8
+99.33%
+1.7
+1.7
+170.8
+0.3
+(170.5)
+PEN 21.94
+Sun Pharma De Venezuela, C.A.
+27.06.2006
+06.11.2011
+100.00%
+31.0
+100.00%
+(6,328.7)
+100.00%
+289.9
+145.0
+(1,995.4)
+434.9
+(8,324.1)
+399.8
+339.4 2,824.7
+4,125.2
+2,190.0
+81.8
+(67.6)
+607.7
+6,147.7
+8,855.2 8,787.6
+6,732.9 45,552.5 52,893.1
+3,237.6 (2,522.3) 6,863.0
+2,597.3 1,277.5 3,956.6
+USD 75.43
+USD 75.43
+USD 75.43
+AUD 46.49
+20.09.2010
+05.08.2005
+11.03.2008
+13 Sun Pharmaceutical Industries (Australia) Pty
+Limited
+12 Alkaloida Chemical Company Zrt.
+11 The Taro Development Corporation
+24.11.2008
+10 Chattem Chemicals Inc.
+VES 0.00
+Sun Pharmaceutical Peru S.A.C.
+7
+100.00%
+(2,753.5)
+80.9
+3.2
+MXN 3.15
+03.12.2002
+Sun Pharma De Mexico S.A. DE C.V.
+5
+BRL 14.52
+22.05.2009
+Sun Farmaceutica do Brasil Ltda.
+4
+1,942.6
+1,752.7 2,703.9 897.9
+56,727.1 127,512.5 70,785.4
+100.00%
+(0.9)
+(0.9)
+1.5
+1.5
+(7.0)
+7.0
+53.3
+977.9 1,056.4
+946.1 3,618.7
+75.3
+9,827.8 57,272.4
+1,629.5
+517.3
+5,251.7
+0.2
+0.2
+MXN 3.15
+13.02.2002
+SPIL De Mexico S.A. DE C.V.
+6
+75.00%
+146.6
+58.6
+368.8
+205.2
+100.00%
+(647.6)
+47.6
+(600.0)
+100.00%
+2,618.5
+72.50%
+303.6
+213.7
+2,633.2
+951.3
+99.99%
+(395.0)
+(395.0)
+100.00%
+(517.7)
+100.00%
+1.0
+0.4
+1.4
+(517.7)
+(553.0)
+29.3
+2,283.6
+506.0
+100.00%
+(35,347.7)
+(35,347.7)
+3,405.2 12,819.9
+57.8
+8,513.0
+100.00%
+38.9
+38.9
+8.8
+100.00%
+18.6
+9.1
+27.7
+114.1
+4.9
+(667.1)
+100.00%
+24.4
+27 Taro Pharmaceutical Industries Ltd. (Taro)
+3.1
+2.9
+0.2
+USD 75.43
+05.05.1983
+26 Morley & Company, Inc.
+695.9 68,541.1
+400.5 204,817.8 221,472.5 16,254.2
+2,266.1
+INR 1.00
+25 Sun Pharma Laboratories Limited
+100.00%
+(0.1)
+(0.1)
+0.1
+100.00%
+(0.4)
+(0.4)
+100.00%
+09.03.2012
+USD 75.43
+100.00%
+8.0
+19 Sun Pharmaceuticals SA (Pty) Ltd
+25.11.2008
+18 Sun Pharma Global FZE
+10.02.2009
+17 Sun Pharmaceuticals France
+(146.0)
+2.1
+EURO 82.93
+11.08.2008
+16 Sun Pharmaceuticals Germany GmbH
+31.5
+1.5
+10.9
+ILS 21.21
+EURO 82.93
+29.06.2007
+15 Sun Pharmaceutical Industries (Europe) B.V.
+22.04.2007
+14 Aditya Acquisition Company Ltd.
+100.00%
+22.10.2008
+20 Sun Laboratories FZE
+13.03.2011
+21 Sun Pharma Japan Ltd.
+37.3
+2,893.2
+100.00%
+(5.4)
+1.5
+(3.9)
+22.8
+17.1
+6.2
+1,441.6 1,408.6
+1,670.1 1,814.0
+11.4
+1.4
+65,751.4 109,870.6 43,808.1
+159.5 158.7
+924.1 (1,605.9) 24,683.8 25,365.6
+109.9 1,576.9 7,579.9 5,893.1
+12.8 (556.8) 380.7 924.7
+6.2
+(2.4)
+6.2
+2.4
+0.1
+(0.2)
+INR 1.00
+29.3
+12.01.2012
+0.8
+6.9
+3.1
+311.1
+EURO 82.93
+USD 75.43
+ZAR 4.19
+USD 75.43
+JPY 0.70
+PHP 1.48
+KRW 0.06
+20.09.2011
+23 Sun Pharmaceuticals Korea Ltd.
+08.12.2011
+22 Sun Pharma Philippines, Inc.
+01.03.2012
+24 Caraco Pharmaceuticals Private Limited
+(0.6)
+271.3
+48 JSC Biosintez
+(371.4)
+100.00%
+808.9
+119.7
+(939.3) 1,537.9 1,668.3
+2,226.6
+121.4
+121.4
+100.00%
+89.3 1,003.6
+794.6
+1,319.1
+(51.4)
+(51.4)
+100.00%
+72 Terapia SA
+24.03.2015
+73 Sun Pharma (Netherlands) B.V. (Formerly
+known as Ranbaxy (Netherlands) B.V.)
+24.03.2015
+RON 17.15 428.7 6,283.3 11,929.9 5,217.9
+USD 75.43 45,381.0 20,201.1 66,162.3 580.2
+43.2
+- 13,132.9
+3,180.8 6,440.4
+(328.2)
+252.2 (1,633.5) 1,703.5 3,084.8
+60.2
+60.2
+100.00%
+68 Ranbaxy (Malaysia) SDN. BHD.
+24.03.2015
+69 Ranbaxy Farmaceutica Ltda.
+24.03.2015
+70 Sun Pharma ANZ Pty Ltd
+24.03.2015
+71 Sun Pharma Canada Inc. (Formerly known as
+Ranbaxy Pharmaceuticals Canada Inc.)
+24.03.2015
+MYR 17.48
+BRL 14.52
+AUD 46.49
+CAD 53.19
+145.1
+827.2 2,082.1 1,109.8
+2,887.2
+741.0
+179.2
+561.8
+95.67%
+1,958.3
+2,853.5
+6,040.9
+375.3
+(111.0)
+2,478.2
+100.00%
+521.1
+521.1
+100.00%
+77
+Foundation for Disease Elimination and Control 21.09.2016
+of India
+INR 1.00
+0.1
+2.7
+3.4
+0.6
+54.3
+1.6
+1.6
+100.00%
+78 Zenotech Laboratories Limited
+27.07.2017
+INR 1.00
+79 Sun Pharmaceutical Medicare Limited
+(16.4)
+63.1
+46.7
+2,335.0
+96.81%
+6,151.9
+100.00%
+74 Insite Vision Incorporated
+02.11.2015
+USD 75.43
+75 JSC Biosintez
+19.12.2016
+RUB 0.96
+2,442.6
+0.3
+18.11.2016
+USD 75.43
+(443.9) 276.1 720.0
+185.7 4,019.8 3,833.8
+63,997.2 63,997.2
+681.2
+74.6
+(26.5)
+101.1
+100.00%
+1.9
+76 Sun Pharmaceutical Holdings USA, Inc
+966.9
+428.6 1,478.4
+82.9
+(2.9)
+(2.9)
+100.00%
+2,780.8
+91.1
+20.9
+70.2
+100.00%
+563.5
+26.4
+8.0
+18.4
+100.00%
+1,171.0
+(264.4)
+5.9
+(270.3)
+86.16%
+1,678.9
+11,468.2
+29.0
+6.0
+10.0 (33.0)
+2,023.2 (491.4) 2,781.6 1,249.8
+78.0 143.0 316.4
+95.4
+8.3 (383.6) 1,819.7 2,195.0
+264.2 (51.0) 1,037.3 824.1
+18.0 2,888.7 10,467.5 7,560.8
+992.4 992.4
+2,896.7 4,432.9
+(12.6) 577.2
+988.6 5,722.4
+157.0
+24.03.2015
+59 Ranbaxy (Poland) SP. Z O.O.
+24.03.2015
+60 Ranbaxy Nigeria Limited
+61 Ranbaxy (Thailand) Co., Ltd.
+24.03.2015
+24.03.2015
+62 Ohm Laboratories, Inc.
+24.03.2015
+63 Ranbaxy Signature LLC
+(18.0)
+(1,358.1)
+64 Ranbaxy Inc.
+GBP 93.02
+PLN 18.19
+NGN 0.21
+THB 2.30
+USD 75.43
+USD 75.43
+USD 75.43
+980.6
+65 Ranbaxy Ireland Limited
+24.03.2015
+EURO 82.93
+589.7
+66 AO Ranbaxy
+24.03.2015
+RUB 0.96
+24.03.2015
+24.03.2015
+16.01.2017
+(18.0)
+(51.4)
+PART "A": Subsidiaries
+* in Million
+Financial Statements
+Sr
+Name of the Subsidiary Company
+No
+67 Sun Pharma Laboratorios, S.L.U (formerly
+Laboratorios Ranbaxy, S.L.U.)
+Date of
+acquisition Reporting
+of
+Currency
+subsidiary
+24.03.2015
+Rate Capital Reserve
+Total
+Total
+Assets Liabilities
+Investment
+Other than
+Investment
+in Subsidiary
+Profit
+Turnover
+/ (Loss)
+before
+Taxation
+Provision
+for Taxation
+Profit/
+(Loss) after
+Taxation
+Proposed % of
+Dividend Shareholding
+EURO 82.93
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint ventures
+FORM AOC - 1
+<266
+265 »
+(1,306.7)
+100.00%
+539.0
+555.6
+307.2
+(1,238.3)
+-
+307.2
+67.50%
+42.3
+100.00%
+(1,280.6)
+0.1
+4,576.8
+(3.3)
+(3.3)
+100.00%
+4,820.9
+9.9
+7.9
+2.0
+100.00%
+100.00%
+58 Ranbaxy (U.K.) Limited
+INR 1.00
+01.01.2019
+NA
+ΝΑ
+NA
+ΝΑ
+NA
+4
+Reason why the associate/joint venture is not
+consolidated
+ΝΑ
+NA
+NA
+NA
+NA
+5
+Networth attributable to Shareholding as per latest
+Balance Sheet
+51.1
+0.0
+376.1
+(930.5)
+23.1
+Description of how there is significant influence
+6
+3
+19.99%
+10.09.2018
+2
+Shares of Associate/Joint Ventures held by the
+company on the year end
+No.
+15,853
+28,760
+NA
+1,999
+345,622
+Amount of Investment in Associates/Joint Venture
+Extend of Holding %
+262.0
+0.0
+579.0
+1,389.2
+195.2
+45.00%
+28.76%
+40.61%
+18.33%
+Profit/(loss) for the year
+i.
+Considered in Consolidation
+Notice of Annual General Meeting
+NOTICE is hereby given that the Twenty-Eighth Annual
+General Meeting of the members of Sun Pharmaceutical
+Industries Limited will be held on Thursday, August 27,
+2020 at 03:30 p.m. IST (Indian Standard Time) through
+Video Conferencing ("VC") / Other Audio-Visual Means
+("OAVM") to transact the following business:
+ORDINARY BUSINESS:
+1.
+2.
+3.
+4.
+a. To receive, consider and adopt the audited
+standalone financial statements of the Company
+for the financial year ended March 31, 2020
+and the reports of the Board of Directors and
+Auditors thereon.
+b.
+To receive, consider and adopt the audited
+consolidated financial statements of the Company
+for the financial year ended March 31, 2020 and
+the report of the Auditors thereon.
+To confirm payment of Interim Dividend* of *3/-
+(Rupees Three Only) per Equity Share and to declare
+Final Dividend** of 1/- (Rupees One Only) per Equity
+Share of 1/- for the financial year 2019-20.
+To appoint a Director in place of Mr. Israel Makov (DIN:
+05299764), who retires by rotation and being eligible,
+offers himself for re-appointment.
+To appoint a Director in place of Mr. Sudhir V. Valia
+(DIN: 00005561) who retires by rotation and being
+eligible, offers himself for re-appointment.
+SPECIAL BUSINESS:
+5.
+To consider and, if thought fit, to pass the
+following resolution as an Ordinary Resolution:
+"RESOLVED THAT pursuant to the provisions of
+Section 148 and other applicable provisions, if any, of
+the Companies Act, 2013 read with the Companies
+(Audit and Auditors) Rules, 2014 (including any
+statutory modification(s) or reenactment(s) thereof,
+for the time being in force), the remuneration as set
+out in the Explanatory Statement annexed to this
+Notice, payable to M/s. B M Sharma & Associates,
+Cost Accountants, Firm's Registration No. 100537,
+6.
+appointed as the Cost Auditors of the Company to
+conduct the audit of cost records maintained by the
+Company for the financial year 2020-21, be and is
+hereby ratified.
+RESOLVED FURTHER THAT the Board of Directors
+of the Company or any Committee thereof, be and
+is hereby authorised to do all such acts, deeds and
+things, to execute all such documents, instruments
+and writings as may be required to give effect to
+this resolution."
+Registered Office: SPARC Tandalja, Vadodara - 390 012, Gujarat, India Tel Nos: 0265-6615500/600/700 Fax No: 0265-2354897
+Corporate Office: Sun House, Plot No. 201 B/1, Western Express Highway, Goregaon -East, Mumbai - 400 063, Maharashtra, India.
+CIN: L24230GJ1993PLC019050 Website: www.sunpharma.com Email: secretarial@sunpharma.com
+Sun Pharmaceutical Industries Ltd.
+PHARMA
+SUN
+ii. Not Considered in Consolidation
+(10.0)
+(0.0)
+128.2
+(247.8)
+(18.7)
+(12.2)
+(0.0)
+187.5
+13.03.2014
+(991.8)
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+SUNIL R. AJMERA
+Company Secretary
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 27, 2020
+267 »
+Notice
+(83.3)
+31-Dec-19
+31-Dec-19
+31-Mar-20
+31.03.2017
+693.1
+100.00%
+23.4
+(19.5)
+100.00%
+- 81,369.9
+2.5
+0.3
+903.6
+(0.3)
+229.2
+674.4
+100.00%
+(0.3)
+100.00%
+Note:
+1
+0.0' represents amount less than 0.05 Million and rounded off
+2
+3
+100.00%
+(1,396.3)
+0.1
+206.0
+(1,396.2)
+899.1
+3.9
+JPY 0.70
+81 Kayaku Co., Ltd.
+01.01.2019
+JPY 0.70
+82
+Sun Pharma Distributors Limited
+19.03.2019
+83 Realstone Infra Limited
+31.01.2020
+4
+INR 1.00
+INR 1.00
+610.3 (114.1)
+359.3
+2.5 (1,883.9) 3,834.1 5,715.5
+69.6 5,029.4 8,341.7 3,242.7
+2,025.4 3,532.9 1,431.0
+673.3 22,930.4 22,255.6
+(0.3)
+855.5
+259.4
+107.8
+107.8
+57.56%
+799.2
+7,714.2
+4,140.3
+76.5
+1.5
+2.5
+80 Pola Pharma Inc.
+In respect of entities at Sr. Nos. 5 to 8, 47, 66, 74, 75 and 80 the reporting date is as of December 31, 2019 and different from the reporting date of the Parent Company.
+Entity at Sr. No. 83 has been incorporated during the year ended March 31, 2020.
+Books of accounts and other related records/documents of the overseas subsidiaries of the Zenotech Laboratories Limited were missing and due to non-availability of those records/information, Zenotech Laboratories Limited is unable to
+prepare consolidated accounts.
+* in Million
+Part "B": Associate Companies and Joint Venture
+Joint Venture
+Associate
+Sr.
+Name of Associates/Joint Venture
+No
+Artes
+Biotechnology
+GmbH
+Generic Solar
+Power LLP
+788.6
+Tarsius Pharma
+Medinstill LLC
+Ltd.
+1
+Latest Balance Sheet Date
+31-Dec-19
+31-Mar-20
+Date of acquisition
+13.02.2014
+09.10.2015
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint ventures
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts)
+Rules, 2014
+FORM AOC - 1
+Annual Report 2019-20
+The above does not include Taro Pharmaceutical Laboratories Inc., 2 Independence Way LLC, URL Pharma Pro LLC and Dungan Mutual Associates LLC as they have no operation and does not have any Assets, Liabilities or Equity as on the
+close of their financial year.
+Pola Pharma Inc. has been merged with Sun Pharma Japan Ltd. with effect from January 01, 2020. Consequently, the numbers against Pola Pharma Inc. are for the period January 01, 2019 to to December 31, 2019.
+Financial statements of Kayaku Co. Ltd. are for the period January 01, 2019 to March 31, 2020 as it has changed its Financial year end from December to March.
+5
+6
+3 Skyline LLC and One Commerce drive LLC are being consolidated with Taro Pharmaceuticals U.S.A., Inc.
+7
+8
+9
+10
+11
+Foundation for Disease Elimination and Control of India (FDEC), a wholly owned subsidiary incorporated in India on September 21, 2016 by the Company as part of its Corporate Social Responsibility (CSR) initiative, has entered into an
+MOU with Indian Council of Medical Research (ICMR) and Madhya Pradesh State Government to undertake the Mandla Malaria Elimination Demonstration Project with a goal to eliminate Malaria in the state. FDEC is a Section 8 company
+not considered for consolidation since it can apply its income for charitable purposes only and can raise funds/contribution independently.
+12
+13
+14
+Sonke Pharmaceuticals Proprietary Limited have been consolidated with Ranbaxy South Africa (Pty) Ltd.
+15
+With effect from January 28, 2020 Sun Pharma Healthcare FZE has been dissolved.
+With effect from March 16, 2020 Dungan Mutual Associates, LLC and URL Pharm Pro, LLC has been merged with Mutual Pharmaceutical Company Inc.
+With effect from March 27, 2020 Morley & Company, Inc has been merged with The Taro Development Corporation.
+With effect from January 25, 2019 Sun Global Canada Pty. Ltd. has been dissolved.
+The Transformation Journey
+With effect from February 27, 2020 Sun Global Development FZE has been dissolved.
+EGP 4.77
+Trumpcard
+Advisors and
+Finvest LLP
+57 Rexcel Egypt LLC
+35 Ranbaxy Farmaceutica Ltda.
+81.4
+0.2
+81.4
+0.3
+(264.6)
+(0.1)
+34 Sun Pharma ANZ Pty Ltd
+12.6
+0.0
+12.6
+0.0
+(147.0)
+(0.0)
+33 Sun Pharma East Africa Limited
+5.0
+0.0
+5.0
+0.0
+(0.3)
+217,084.2
+(1,234.4)
+(243.1)
+Egypt Ltd)
+(Formerly known as Ranbaxy
+(165.1)
+(0.4)
+(165.1)
+(0.6)
+247.9
+0.1
+37 Sun Pharma Egypt Ltd LLC
+(Formerly known as Ranbaxy
+Pharmaceuticals Canada Inc.)
+(34.9)
+(0.1)
+(34.9)
+(0.1)
+251.7
+0.1
+36 Sun Pharma Canada Inc.
+(243.1)
+(0.6)
+(0.9)
+48.5
+32 Sun Pharma Holdings
+8.2
+29.5
+29 Taro Pharmaceutical Industries
+0.5
+(150.3)
+(0.0)
+28 Sun Laboratories FZE
+3.8
+0.0
+3.8
+0.0
+198.9
+0.0
+27 Sun Pharma HealthCare FZE
+(516.8)
+(1.2)
+(516.8)
+(1.9)
+(2,015.8)
+(0.5)
+132,107.7
+75.6
+125.2
+20,161.1
+0.3
+0.0
+8.2
+0.0
+4.9
+0.0
+31 Sun Pharma Switzerland Ltd.
+0.5
+0.0
+0.5
+38 Rexcel Egypt LLC
+0.0
+0.0
+Alkaloida Sweden AB
+30
+Subsidiaries)
+Ltd. (TARO) (Consolidated with its
+17,149.1
+40.8
+(19.6) (3,012.0)
+125.2
+0.6
+(0.0)
+(24.1)
+(0.0)
+(41.5)
+(0.1)
+(41.5)
+(0.2)
+(170.9)
+(0.0)
+44 Sun Pharmaceutical Industries
+S.A.C.
+TCI
+consolidated in Million consolidated in Million
+OCI
+* in Million
+As % of
+As % of
+As % of
+consolidated
+profit or
+(loss)
+net assets
+Share in total
+comprehensive income
+(TCI)
+2018-19
+Share in other
+comprehensive income
+(OCI)
+2018-19
+2018-19
+consolidated in Million
+As % of
+45 Ranbaxy (Poland) SP. Z O.O.
+0.0
+202.5
+0.1
+232.7
+0.6
+24.03.2015
+232.7
+0.9
+1,208.0
+0.3
+47 AO Ranbaxy
+2,654.6
+2018-19
+6.3
+(0.0)
+2,655.9
+10.0
+7,821.8
+1.7
+46 Terapia SA
+19.7
+0.0
+19.7
+(1.3)
+26 Sun Pharma Japan Ltd.
+No.
+S.
+0.2
+1,041.8
+0.2
+「8「8「g「8
+43 Ranbaxy Italia S.P.A.
+42 Ranbaxy Ireland Limited
+41 Ranbaxy GmbH
+40 Basics GmbH
+Et Hospitalier
+6.2
+0.0
+6.2
+0.0
+96.1
+0.0
+39 Office Pharmaceutique Industriel
+(3.7)
+(0.0)
+(3.7)
+59.9
+0.1
+59.9
+0.0
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint
+ventures as per Schedule III of Companies Act, 2013:
+(Annexure 'A')
+for the year ended March 31, 2020
+Notes to the Consolidated Financial Statements
+Financial Statements
+259 »
+12.6
+Name of the entity
+0.0
+0.0
+11.8
+0.0
+(7.1)
+(0.0)
+(7.1)
+(0.0)
+543.0
+1.9
+12.6
+(201.7)
+Notes to the Consolidated Financial Statements
+(201.7)
+3,840.1
+77.6
+24.8
+52.8
+100.00%
+1,015.8
+68.9
+12.6
+56.3
+100.00%
+1,554.9
+84.3
+39.4
+44.9
+100.00%
+596.0
+17.5
+17.5
+100.00%
+100.00%
+11.1
+6.7
+17.8
+As % of
+2018-19
+No.
+Name of the entity
+S.
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint
+ventures as per Schedule III of Companies Act, 2013:
+(Annexure 'A')
+0.6
+Annual Report 2019-20
+Notes to the Consolidated Financial Statements
+The Transformation Journey
+1,318.4 (1,099.4)
+(99.4)
+411.1
+503.9 8,055.3 7,147.1
+109.3 194.2 417.8 114.3
+91.5 (88.5) 2,105.2 2,102.2
+95.3 (257.6) 523.8 686.1
+2,842.3 142.6 2,985.5
+2,068.9 (4,973.9) 1,123.8 4,028.8
+226.3
+172.1
+172.1
+100.00%
+510.4
+536.0
+for the year ended March 31, 2020
+2018-19
+-
+(0.6)
+16.9
+100.00%
+3,912.1
+162.2
+-
+162.2
+100.00%
+3,387.0
+72.7
+21.0
+51.7
+100.00%
+386.2
+484.9
+(61.6)
+(0.5)
+100.00%
+(18.1)
+(43.5)
+22.2
+39.1
+2,640.0
+100.00%
+100.00%
+2,242.5
+(248.1)
+(248.1)
+100.00%
+52 Office Pharmaceutique Industriel Et Hospitalier 24.03.2015
+53 Ranbaxy Italia S.P.A.
+EURO 82.93
+24.03.2015
+54 Ranbaxy Pharmaceuticals (Pty) Ltd
+(0.6)
+55 Ranbaxy South Africa (Pty) Ltd
+EURO 82.93
+ZAR 4.19
+ZAR 4.19
+110.3
+4.1
+838.0
+73.4
+56 Sun Pharma Egypt Limited LLC (Formerly
+known as Ranbaxy Egypt Ltd)
+24.03.2015
+(3.1) 252.8
+27.7 1,887.2 1,855.4
+809.4 2,778.8 1,131.4
+882.5 1,953.7 997.8
+628.9 (368.7) 646.4
+145.6
+375.5
+1.5
+1.5
+24.03.2015
+24.03.2015
+Share in other
+comprehensive income
+(OCI)
+2018-19
+EGP 4.77
+2018-19
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+21 Sun Pharmaceuticals SA (Pty) Ltd.
+22 Sun Global Canada Pty. Ltd.
+23 Sun Pharma Philippines, Inc.
+venture)
+(Consolidated with a Joint
+(17.5) (7,373.2)*
+(6.5) (1,010.3)
+(23.9) (6,362.9)*
+95,214.0
+21.3
+20 Sun Pharma Global FZE
+(3.4)
+(0.0)
+(3.4)
+(0.0)
+(27.0)
+(0.0)
+(0.0)
+(1.5)
+(0.0)
+(0.0)
+(15.5)
+25 Sun Global Development FZE
+Share in total
+comprehensive income
+(TCI)
+(0.8)
+(0.2)
+(0.0)
+(0.2)
+(0.0)
+(0.0)
+4.2
+24 Sun Pharmaceuticals Korea Ltd.
+(34.3)
+(0.1)
+(34.3)
+(0.1)
+(502.8)
+(0.1)
+(0.0)
+(0.1)
+0.0
+19 Sun Pharmaceuticals France
+(0.1)
+22.0
+2.4
+0.0
+14.7
+0.0
+15 Aditya Acquisition Company Ltd.
+16 Sun Pharmaceutical Industries
+(331.3)
+(0.8)
+TCI
+(331.3)
+0.0
+(1.2)
+14 Sun Pharmaceutical Industries
+(Australia) Pty Limited
+(loss)
+consolidated in Million consolidated in Million
+OCI
+* in Million
+consolidated in Million
+net assets
+GmbH
+As % of
+consolidated
+profit or
+As % of
+As % of
+0.3
+4.1
+1,168.3
+71.6
+22.0
+(3.2)
+0.3
+0.1
+0.1
+(178.5)
+(0.0)
+(0.0)
+(3.2)
+(0.0)
+18 Sun Pharmaceuticals Germany
+0.0
+0.0
+17 Sun Pharmaceuticals Italia S.R.L.
+(Europe) B.V.
+71.6
+2.4
+43.0
+0.2
+Rate specified in the Lower/Nil tax deduction certificate obtained from Income Tax
+certificate
+g)
+f)
+The aforesaid documents such as Form No. 15G/ 15H,
+documents under section 196, 197A, FPI Registration
+Certificate, Tax Residency Certificate, Lower/Nil Tax
+deduction certificate etc. can be submitted to the
+Company/Company's RTA at sunpharmadivtax@
+linkintime.co.in or can be uploaded on the link
+https://linkintime.co.in/formsreg/submission-
+of-form-15g-15h.html on or before August 18,
+2020 to enable the Company to determine the
+appropriate TDS / withholding tax rate applicable.
+Any communication on the tax determination/
+deduction received post August 18, 2020 shall not be
+considered for the payment of Final Dividend for the
+financial year 2019-20.
+d)
+5. Self-declaration by the shareholder regarding the satisfaction of
+the place of effective management (POEM), principal purpose test,
+General Anti Avoidance Rule (GAAR), Simplified Limitation of Benefit
+test (wherever applicable), as regards the eligibility to claim recourse to
+concerned Double Taxation Avoidance Agreements.
+(Note: Application of beneficial tax treaty rate shall depend upon
+the completeness of the documents submitted by the non-resident
+shareholder and review to the satisfaction of the Company)
+Lower/nil tax deduction certificate u/s 195(3) obtained from Income
+Tax Authority. Self-declaration confirming that the income is received
+on its own account and not on behalf of the Foreign Bank.
+The overseas trust can also be given the tax treaty rate. However, the
+same can be litigative and hence, on a conservative basis, withholding
+on dividends paid to overseas trust should be as per Income-tax Act,
+1961 only
+Notice
+273 »
+Authority
+The Company will issue soft copy of TDS certificate
+to its shareholders through email registered with
+Company/Company's RTA post payment of
+dividend. Shareholders will be able to download the
+TDS certificate from the Income Tax Department's
+website https://incometaxindiaefiling.gov.in (refer
+to Form 26AS).
+h)
+j)
+In the event of any income tax demand
+(including interest, penalty, etc.) arising from
+any misrepresentation, inaccuracy or omission
+of information provided by the Member/s, such
+Member/s will be responsible to indemnify the
+Company and also, provide the Company with all
+information / documents and co-operation in any
+assessment / appellate proceedings.
+This communication is not exhaustive and does not
+purport to be a complete analysis or listing of all
+potential tax consequences in the matter of dividend
+payment. Shareholders should consult their tax
+advisors for requisite action to be taken by them.
+i)
+The tax withholding rates referred above are based on
+the law prevailing as on the date.
+All queries/grievances/issues in this regard shall be
+attended/ addressed on rnt.helpdesk@linkintime.co.in.
+e)
+Application of TDS rate is subject to necessary
+verification as per details as available in Register of
+Members as on the Record Date, and other documents
+available with the Company / Company's RTA.
+In the event there is ambiguity in law or interpretation
+or matters concerning tax withholding, the highest
+applicable tax withholding rate shall be considered on
+a conservative basis.
+19. Pursuant to Section 124 of the Act, the amount of dividend remaining unclaimed for a period of seven years shall be
+transferred to the Investor Education and Protection Fund ("IEPF"). The Company will be transferring the unclaimed
+dividends during the financial years ending March 31, 2021 to March 31, 2027 as given below:
+Rate of Dividend
+*2.50 per share of *1/- each
+*1.50 per share of *1/- each
+Dividend for Financial Year
+4. Self-declaration by the shareholder for non-existence of permanent
+establishment/ fixed base in India
+2012-2013
+Date of Declaration of Dividend
+Entitled
+In case TDS is deducted at a higher rate, an option is
+still available with the shareholder to file the return
+of income and claim an appropriate refund from the
+Income-tax department.
+3. Form No. 10F duly filled in & signed
+Documents Required (if any)
+To avail beneficial rate of tax as per applicable tax treaty, following
+documents would be required:
+7
+National Pension System Trust referred to in
+Date on which Dividend will
+become due for transfer to IEPF
+Approved gratuity fund
+NIL
+section 10(44) of the Income-tax Act, 1961
+No TDS as per section 197A (1E) of the Income Tax Act,
+1961
+b)
+NON-RESIDENT SHAREHOLDERS
+Tax deducted at source on dividend payment to non-resident shareholders if the non-resident shareholders submit
+and register following documents with the Company/ Company's RTA - Link Intime India Private Limited
+Sr.
+Particulars
+No.
+Rate of Deduction of
+Tax at Source
+1. Tax Residency certificate issued by revenue authority of country of
+residence of shareholder for the year in which dividend is received
+2. Permanent Account Number (PAN)
+1 Foreign Institutional Investors (FIls) / 20% (plus applicable FPI registration number / certificate.
+2
+Other Non-resident shareholders
+surcharge and cess)
+20% (plus applicable
+surcharge and
+cess) or tax treaty
+rate, whichever is
+beneficial
+3
+Indian Branch of a Foreign Bank
+NIL
+4
+Overseas Trust
+5
+Availability of Lower/Nil tax
+deduction certificate issued by
+Income Tax Department u/s 197 of
+Income Tax Act, 1961
+20% (plus applicable
+surcharge and cess)
+Foreign Portfolio Investors (FPIs)
+2013-2014
+25. The voting rights of Members shall be in proportion
+to their shares in the paid-up share capital of the
+Company as on the cut-off date ("Record Date"), i.e., as
+on Thursday, August 20, 2020
+2015-2016
+21. The members are requested to get their physical
+shares dematerialised, since vide SEBI Circular
+dated June 08, 2018 read with SEBI Circular dated
+December 03, 2018 with effect from April 01, 2019,
+except in case of transmission or transposition, the
+securities shall not be transferred unless they are held
+in the dematerialised form.
+22. Pursuant to the provisions of Section 108 of the
+Companies Act, 2013 read with Rule 20 of the
+Companies (Management and Administration) Rules,
+2014 (as amended) and Regulation 44 of SEBI (Listing
+Obligations & Disclosure Requirements) Regulations
+2015 (as amended), and MCA Circulars, the Company
+is providing facility of remote e-voting to its Members
+in respect of the business to be transacted at the
+28th AGM of the Company. For this purpose, the
+Company has appointed Central Depository Services
+(India) Limited (CDSL) for facilitating voting through
+electronic means, as the authorised e-Voting's agency.
+The facility of casting votes by a member using remote
+e-voting as well as the e-voting system on the date of
+the 28th AGM will be provided by CDSL.
+23. The Members can join the 28th AGM in the VC/
+OAVM mode 30 minutes before the scheduled time
+of the commencement of the Meeting by following
+the procedure as detailed in this Notice. As per the
+MCA Circulars, the facility of participation at the 28th
+AGM through VC/OAVM will be made available to at
+least 1000 members on first come first served basis.
+This will not include large Shareholders (Shareholders
+holding 2% or more shareholding), Promoters,
+Institutional Investors, Directors, Key Managerial
+Personnel, the Chairpersons of the Audit Committee,
+Nomination and Remuneration Committee and
+Stakeholders Relationship Committee, Auditors etc.
+who are allowed to attend the 28th AGM without
+restriction on account of first come first served basis.
+24. The attendance of the Members attending the 28th
+AGM through VC/OAVM will be counted for the
+purpose of ascertaining the quorum under Section 103
+of the Companies Act, 2013.
+26. The Board of Directors has appointed Mr. Chintan
+Goswami, Partner of KJB & Co. LLP, Practising
+Company Secretaries, and failing him, Mr. Alpesh
+Panchal, Partner of KJB & Co. LLP, Practising Company
+Secretaries, Mumbai as the Scrutinizer to scrutinize the
+voting during the AGM by electronic mode and remote
+e-voting process in a fair and transparent manner. They
+have communicated their willingness to be appointed
+as such and they are available for the said purpose.
+27. In line with the Ministry of Corporate Affairs (MCA)
+Circular No. 17/2020 dated April 13, 2020, the Notice
+calling the 28th AGM has been uploaded on the
+website of the Company at www.sunpharma.com. The
+Notice can also be accessed from the websites of the
+Stock Exchanges i.e. BSE Limited and National Stock
+Exchange of India Limited at www.bseindia.com and
+www.nseindia.com respectively. The 28th AGM Notice
+is also disseminated on the website of CDSL (agency
+for providing the Remote e-Voting facility and e-voting
+system during the 28th AGM) i.e.
+www.evotingindia.com.
+28. The 28th AGM has been convened through VC/OAVM
+in compliance with the applicable provisions of the
+Companies Act, 2013 read with the MCA Circulars.
+29. Instructions for Remote E-Voting and Electronic
+Voting System:
+(i) The remote e-voting period begins on Monday,
+August 24, 2020 at 09:00 a.m. and ends on
+Wednesday, August 26, 2020 at 05:00 p.m.
+During this period shareholders' of the Company,
+holding shares either in physical form or in
+dematerialised form, as on the cut-off date i.e.
+Thursday, August 20, 2020 may cast their vote
+electronically. The e-voting module shall be
+disabled by CDSL for voting thereafter. Those
+members who will be present in the AGM through
+VC/OAVM facility and have not cast their vote
+on the Resolutions through remote e-voting
+and are otherwise not barred from doing so,
+shall be eligible to vote through e-voting system
+during the AGM.
+275 »
+Notice
+(ii) Shareholders who have already voted prior to the meeting date would not be entitled to cast their vote again.
+The procedure to claim shares from IEPF Authority
+is provided on the website of the Company and can
+be accessed from: www.sunpharma.com under head
+"Investor" sub-head "Shareholder Information".
+(iii) The shareholders should log on to the e-voting website www.evotingindia.com.
+(v) Now enter your User ID
+a. For CDSL: 16 digits beneficiary ID,
+b.
+C.
+d.
+For NSDL: 8 Character DP ID followed by 8 Digits Client ID,
+Shareholders holding shares in Physical Form should enter Folio Number registered with the Company.
+OR
+Alternatively, if you are registered for CDSL's EASI/EASIEST e-services, you can log-in at https://www.
+cdslindia.com from Login - Myeasi using your login credentials. Once you successfully log-in to CDSL's EASI/
+EASIEST e-services, click on e-Voting option and proceed directly to cast your vote electronically.
+(vi) Next enter the Image Verification as displayed and Click on Login
+(vii) If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier
+e-voting of any company, then your existing password is to be used.
+•
+(viii) If you are a first time user follow the steps given below:
+PAN
+(iv) Click on "Shareholders" module.
+The shares in respect of which dividend has remained
+unpaid or unclaimed for 7 (seven) consecutive years
+commencing from the financial year 2012-13 are liable
+for transfer to the IEPF Authority pursuant to the
+Rules. The details of such shares which are becoming
+due for transfer to IEPF Authority on October 31,
+2020 are available on website of the Company
+www.sunpharma.com under head "Investor" sub-head
+"Shareholder Information". The shareholders are
+requested to claim their unpaid or unclaimed Dividend
+latest by October 15, 2020 after which date the
+Company shall initiate the process of transferring the
+eligible shares to the IEPF Authority.
+Consequently, the Company has transferred the shares
+to the IEPF Authority in respect of which dividend has
+remained unpaid or unclaimed from the financial year
+2011-12 for 7 (seven) consecutive years, the details
+of which are available on website of the Company
+www.sunpharma.com under head "Investor" sub-head
+"Shareholder Information".
+Annual Report 2019-20
+2016-2017
+2017-2018
+2018-2019
+2019-2020 (Interim Dividend)
+30.09.2013
+31.10.2020
+27.09.2014
+27.10.2021
+31.10.2015
+*3.00 per share of *1/- each
+29.11.2022
+17.09.2016
+*1.00 per share of 1/- each
+16.10.2023
+26.09.2017
+*3.50 per share of *1/- each
+28.10.2024
+The Transformation Journey
+274
+www.sunpharma.com under head "Investor" sub-head
+"Shareholder Information" as well as on the website of
+the Ministry of Corporate Affairs viz.,www.iepf.gov.in.
+20. The members may note that pursuant to Section
+124(6) of the Act read with Investor Education and
+Protection Fund Authority (Accounting, Audit, Transfer
+and Refund) Rules, 2016 as amended from time to time
+("the Rules"), the shares in respect of which dividend
+has not been paid or claimed by the members for seven
+consecutive years or more shall be transferred to the
+demat account created by the IEPF Authority.
+as on August 28, 2019 (date of the last Annual
+General Meeting of the Company) on the website of
+the Company viz.,
+Members who have not encashed their dividend
+warrants, for the financial year ended March 31,
+2013 and onwards are requested to approach the
+Company's Registrar & Share Transfer Agents, Link
+Intime India Pvt. Ltd. at C-101, 247 Park, L.B.S. Marg,
+Vikhroli (West), Mumbai - 400083, Maharashtra,
+India, to claim their unpaid Dividend. The Dividend
+declared for the financial year ended March 31, 2013
+and remaining unpaid and unclaimed, will become due
+for transfer to the Investor Education and Protection
+Fund on October 31, 2020. Pursuant to the provisions
+of Investor Education and Protection Fund Authority
+(Accounting, Audit, Transfer and Refund) Rules, 2016,
+the Company has uploaded the details of unpaid
+and unclaimed amounts lying with the Company
+11.03.2027
+2014-2015
+*3.00 per share of *1/- each
+29.09.2026
+*2.75 per share of *1/- each
+28.08.2019
+27.10.2025
+*2.00 per share of 1/- each
+26.09.2018
+06.02.2020
+SEBI AIF registration certificate to claim benefit u/s 197A (1F)
+read with section 10(23FBA) of the Income Tax Act, 1961
+Necessary documentary evidence as per Circular No.
+18/2017 issued by Central Board of Direct Taxes (CBDT)
+In accordance with MCA Circulars dated April 08, 2020
+and April 13, 2020 and SEBI Circular dated May 12,
+2020 due to COVID-19 pandemic, the Notice of 28th
+AGM along with the Annual Report for 2019-20 is
+being sent only through electronic mode to those
+members whose e-mail addresses are registered with
+the Company's Registrar & Share Transfer Agents,
+Link Intime India Pvt. Ltd. ("RTA") / Depositories.
+Members may note that the Notice of the 28th AGM
+along with the Annual Report 2019-20 is also available
+for download on the website of the Company at
+www.sunpharma.com and on the websites of the
+Stock Exchanges, i.e. BSE Limited and National Stock
+Exchange of India Limited at
+•
+Pursuant to MCA General Circular No. 14/2020 dated
+April 08, 2020, read with MCA General Circular No.
+20/2020 dated May 5, 2020, the facility to appoint
+proxy to attend and cast vote for the members is not
+available for this 28th AGM. However, in pursuance
+of Section 112 and Section 113 of the Companies
+Act, 2013, representatives of the members such as
+the President of India or the Governor of a State or
+body corporate can attend the 28th AGM through VC/
+OAVM and cast their votes through e-voting.
+Corporate members intending to appoint authorised
+representative(s) to attend and vote on their behalf
+at the 28th AGM are requested to submit to the
+Company a certified true copy of the resolution of
+the Board of Directors or other governing body of
+the body corporate authorising their representative(s)
+to attend and vote along with specimen signature of
+authorised representative(s) by e-mail to
+secretarial@sunpharma.com or
+scrutinizer@sunpharma.com before the
+commencement of the 28th AGM.
+In case of joint holders attending the 28th AGM, the
+member whose name appears as the first holder in
+the order of names as per Register of Members will
+6.
+7.
+8.
+9.
+be entitled to vote, provided the votes are not already
+cast by remote e-voting.
+The Register of Members and Share Transfer Books of
+the Company will be closed from Friday, August 21,
+2020 to the date of the 28th AGM of the Company
+to be held on Thursday, August 27, 2020 (both days
+inclusive) for the purpose of the 28th AGM of the
+Company and for the payment of Final Dividend.
+Shareholders who would like to express their views/
+ask questions during the 28th AGM may register
+themselves as a speaker by sending their request,
+mentioning their name, demat account number/folio
+number, email id, mobile number, at
+secretarial@sunpharma.com between August 20,
+2020 to August 23, 2020. The shareholders who do
+not wish to speak during the AGM but have queries
+may send their queries, mentioning their name, demat
+account number/folio number, email id, mobile number,
+to secretarial@sunpharma.com. These queries will be
+suitably replied to by the Company by email.
+Those shareholders who have registered themselves as
+a speaker will only be allowed to express their views/
+ask questions during the meeting for a maximum
+time of 3 (three) minutes each, once the floor is open
+for shareholder queries. The Company reserves
+the right to restrict the number of speakers and
+number of questions depending on the availability of
+time for the AGM.
+www.bseindia.com and www.nseindia.com respectively.
+10. For receiving all communication (including Notice and
+Annual Report) from the Company electronically:
+(a) Members holding shares in physical mode and
+who have not registered/ updated their email
+addresses with the Company/ RTA are requested
+to register/ update the same by writing to the
+Company/ RTA with details of folio number and
+attaching a self-attested copy of the PAN Card at
+secretarial@sunpharma.com or to the Company's
+As you are aware, in view of the situation arising due
+to COVID-19 global pandemic, the general meetings
+of the companies shall be conducted as per the
+guidelines issued by the Ministry of Corporate Affairs
+(MCA) vide General Circular No. 14/2020 dated
+April 8, 2020, General Circular No.17/2020 dated
+April 13, 2020 and General Circular No. 20/2020
+dated May 05, 2020 (hereinafter referred to as
+"MCA Circulars"). The forthcoming 28th AGM of the
+Company scheduled on Thursday, August 27, 2020
+will thus be held through video conferencing ("VC") or
+other audio visual means ("OAVM"). Hence, Members
+can attend and participate in the ensuing 28th AGM
+through VC/OAVM.
+RTA at rnt.helpdesk@linkintime.co.in.
+The Transformation Journey
+Annual Report 2019-20
+(b) Members holding shares in dematerialised mode
+are requested to register/ update their email
+addresses with the relevant Depositories.
+11. Members will be able to attend the 28th AGM on
+August 27, 2020 through VC/ OAVM or view the live
+webcast by logging on to the e-voting website of CDSL
+at www.evotingindia.com by using their e-voting login
+credentials. On this page, click on the link Shareholders
+/ Members, the Video Conferencing/ webcast link
+would be available adjacent to EVSN No. 200720007
+of the Company.
+12. The Register of Directors and Key Managerial
+Personnel and their shareholding maintained under
+Section 170 of the Act, the Register of Contracts or
+Arrangements in which the directors are interested,
+maintained under Section 189 of the Act, and the
+relevant documents referred to in the Notice and the
+Explanatory Statement will be available for inspection
+by the members upto the date of 28th AGM, at the
+Registered office of the Company, on all working days,
+except Saturdays and Sundays, between 11:00 a.m. IST
+and 1:00 p.m. IST, and shall be electronically available
+during the meeting hours.
+13. The Board of Directors at its Meeting held on February
+6, 2020 had declared an Interim Dividend of *3/- per
+Equity Share of ₹1/- each. The Interim Dividend was
+paid on February 24, 2020 to those shareholders who
+held shares as on February 18, 2020, being the record
+date for payment.
+14. The Board of Directors at its Meeting held on May
+27, 2020, recommended a Final Dividend of 1/-
+(Rupees One only) per equity share of ₹ 1/- each of
+the Company for the year ended March 31, 2020 and
+the same if declared/ approved at the 28th AGM,
+will be paid on or before September 1, 2020, to the
+Company's members whose names stand in the
+Register of Members as beneficial owners at the close
+of business hours on Thursday, August 20, 2020 as
+per the list provided by National Securities Depository
+Limited ("NSDL") and Central Depository Services
+(India) Limited ("CDSL") in respect of shares held in
+electronic form and as members in the Register of
+Members of the Company after giving effect to valid
+transmissions lodged with the Company on or before
+Thursday, August 20, 2020.
+15. At the Extra Ordinary General Meeting of the
+members of the Company held on September 1,
+2003, the members had approved, by way of a
+Special Resolution, certain amendments whereby few
+Articles were inserted in the Articles of Association
+of the Company relating to enabling the Company
+to implement any instruction from member(s) of the
+Company to waive / forgo his/ their right to receive
+the dividend (interim or final) from the Company for
+any financial year. The above referred amendments
+as approved at the aforesaid Extra Ordinary General
+Meeting have been retained and are inter alia forming
+part of new set of Articles of Association adopted at
+the 24th Annual General Meeting of the Company
+held on September 17, 2016. Thus, the members
+of the Company can waive / forgo, if he/ they so
+desire(s), his/ their right to receive the dividend
+(interim or final) for any financial year effective from
+the dividend recommended by the Board of Directors
+of the Company for the year ended March 31, 2004
+on a year to year basis, as per the rules framed by the
+Board of Directors of the Company from time to time
+for this purpose. The member, if so wishes to waive /
+forgo the right to receive Dividend for the year ended
+March 31, 2020, shall fill up the form and send it to the
+Company's RTA on or before Thursday, August
+20, 2020. The form prescribed by the Board of
+Directors of the Company for waiving / forgoing
+the right to receive Dividend for any year shall be
+available for download on the Company's website
+www.sunpharma.com under section "Investor -
+Shareholder's Information- Statutory Communication"
+or can also be obtained from the Company's RTA.
+The Board of Directors of the Company at its meeting
+held on September 01, 2003 have framed the following
+rules under old Article 190A (corresponding Article
+142 as per the new set of Articles of Association)
+of the Articles of Association of the Company for
+members who want to waive / forgo the right to
+receive dividend in respect of financial year 2002-2003
+or for any year thereafter:
+I.
+A Shareholder can waive / forgo the right to
+receive the dividend (either final and / or interim)
+to which he is entitled, on some or all the Equity
+Shares held by him in the Company as on the
+Record Date / Book-closure Date fixed for
+determining the names of Members entitled
+for such dividend. However, the Shareholder
+cannot waive / forgo the right to receive the
+dividend (either final and / or interim) for a part of
+percentage of dividend on a share(s).
+II. The Equity Shareholder(s) who wish to waive/
+forgo the right to receive the dividend for
+any year shall inform the Company in the
+form prescribed by the Board of Directors of
+the Company only.
+<270
+III. In case of joint holders holding the Equity Shares
+of the Company, all the joint holders are required
+to intimate to the Company in the prescribed form
+their decision of waiving / forgoing their right to
+receive the dividend from the Company.
+The relevant details as required under Regulation
+36 of the SEBI (Listing Obligations and Disclosure
+Requirements) Regulations, 2015 ("Listing
+Regulations") and Clause 1.2.5 of Secretarial Standard
+on General Meetings issued by the Institute of
+Company Secretaries of India (SS-2), in respect of the
+persons seeking appointment / re-appointment as
+Directors and fixation of the terms of remuneration
+of Directors are given under the heading "Profile of
+Directors" forming part of this Notice.
+5.
+to between the Board of Directors and Mr. Dilip
+S. Shanghvi within and in accordance with the Act
+or any amendment thereto and agreed to between
+the Board of Directors and as may be acceptable to
+Mr. Dilip S. Shanghvi;
+Dividend Bank Details
+a)
+b)
+c)
+d)
+e)
+Salary (including bonus and perquisites) upto
+8,10,00,000/- (Rupees Eight Crore and Ten
+Lakhs Only) per annum.
+Perquisites: He will be entitled to furnished/
+non-furnished accommodation or house
+rent allowance, gas, electricity, medical
+reimbursement, leave travel concession for
+self and family, club fees, personal accident
+insurance, company maintained car, telephone
+and such other perquisites in accordance with
+the Company's rules, the monetary value of such
+perquisites to be determined in accordance with
+the Income-Tax Rules, 1962 being restricted
+to 75,00,000 (Rupees Seventy Five Lakhs
+only) per annum
+Commission: Subject to availability of profit
+and at the rate of not more than 1% of the net
+profit for the year, the Board of Directors will
+determine the commission payable within the
+overall ceiling laid down under sections 197 and
+198 of the Companies Act, 2013 and Schedule V
+to the Companies Act, 2013 as may be applicable
+from time to time. He shall not be entitled to
+any sitting fees as is payable to other Non-
+Executive Directors.
+Company's contribution to provident fund and
+superannuation fund or annuity fund, gratuity
+payment as per Company's rules and encashment
+of leave at the end of his tenure, though payable,
+shall not be included in the computation of ceiling
+on remuneration and perquisites as aforesaid.
+Minimum Remuneration: In the event of loss
+or inadequacy of profits in any financial year,
+Mr. Dilip S. Shanghvi shall be entitled to receive
+a total remuneration including perquisites, etc.
+upto the limit as approved by the members
+herein above, as minimum remuneration,
+subject to receipt of such approvals as may be
+required, if any.
+Other terms and conditions: Subject to the
+control and supervision of the Board of Directors
+and subject to the provisions of the Act, Mr. Dilip
+S. Shanghvi shall have the general conduct and
+management of the affairs of the Company and
+he shall be entitled to exercise all such powers
+and to do all such acts and things the Company is
+authorised to exercise and all such powers, acts or
+things which are directed or required by the Act
+or any other Law or by the Articles of Association
+of the Company except such powers/acts/things
+which can be exercised or done by the Company
+in General Meeting or by the Board of Directors
+at their Meeting only. Mr. Dilip S. Shanghvi to
+perform such duties and exercise such powers
+as are additionally entrusted to him by the Board
+and/or the Chairman. He is further authorised
+to do all such acts, deeds, things and matters
+as he may be required or permitted to do, as a
+Managing Director.
+The Explanatory Statement pursuant to Section 102(1)
+of the Companies Act, 2013 ('the Act') relating to the
+Special Business to be transacted at the 28th Annual
+General Meeting of the Company (the "Meeting" or
+"AGM") under Item Nos. 5 and 6, is annexed hereto.
+RESOLVED FURTHER THAT in the event of any
+statutory amendments, modifications or relaxation
+by the Central Government to Schedule V to the
+Companies Act, 2013, the Board of Directors be
+and is hereby authorised to vary or increase the
+remuneration (including the minimum remuneration),
+i.e. the salary, perquisites, allowances, etc. within such
+prescribed limit or ceiling and the aforesaid Agreement
+between the Company and Mr. Dilip S. Shanghvi be
+suitably amended to give effect to such modification,
+relaxation or variation, subject to such approvals as
+may be required under law.
+Mumbai
+May 27, 2020
+Registered Office:
+SPARC, Tandalja,
+Vadodara 390 012.
+Gujarat, India
+By order of the Board of Directors
+For Sun Pharmaceutical Industries Ltd.
+Sunil R. Ajmera
+Company Secretary
+The Interim Dividend at *3/- per equity share of *1/- on
+2,39,79,84,970 shares amounting to ₹7,19,39,54,910/-, has
+been paid on February 24, 2020, excluding interim dividend
+on 13,50,000 equity shares amounting to 40,50,000 which
+had been waived to be received by one of the shareholders.
+**
+The actual Final Dividend on equity shares to be
+declared/ approved by the members at the 28th Annual
+General Meeting will be for equity shares other than the
+equity shares in respect of which the equity shareholder(s)
+has/have waived/forgone his/her/their right to receive the
+dividend for the financial year ended March 31, 2020 in
+accordance with the rules framed by the Board as per
+Note no. 15 hereinafter appearing.
+269 »
+Notice
+NOTES:
+1.
+2.
+3.
+4.
+RESOLVED FURTHER THAT the Board of Directors of
+the Company be and is hereby authorised to take such
+steps as they may deem fit, expedient or desirable to
+give effect to this Resolution."
+Approved superannuation fund
+IV. The Shareholder, who wishes to waive / forgo
+the right to receive the dividend for any year
+shall send his irrevocable instruction waiving /
+forgoing dividend so as to reach the Company
+Notice
+Rate of Deduction
+Particulars
+Documents Required (if any)
+No.
+of Tax at Source
+1
+Submission of Form No. 15G/15H
+NIL
+2
+Securitisation Trust
+NIL
+3
+Shareholders to whom section 194 of the Income
+NIL
+Sr.
+4
+NIL
+1961 such as Government, RBI, corporations
+established by Central Act & mutual funds
+Declaration in Form No. 15G (applicable to any person other
+than a company or a firm) / Form No.15H (applicable to
+an Individual who is 60 years and above), fulfilling certain
+conditions. Please download Form No. 15G / 15H from the
+Income Tax website www.incometaxindia.gov.in
+Copy of registration/ document evidencing the shareholder
+being a securitisation trust (as defined in clause (d) of the
+Explanation below section 115TCA).
+Documentary evidence that the said provisions are not
+applicable.
+Documentary evidence for coverage u/s 196 of the Income
+Tax Act, 1961
+specified u/s 10(23D) of the Income-tax Act, 1961.
+5
+Category I and II Alternative Investment Fund
+NIL
+6
+•
+Recognised provident funds
+NIL
+Tax Act, 1961 does not apply such as LIC, GIC, etc.
+Shareholder covered u/s 196 of Income Tax Act,
+271 >>>
+No Tax Deductible at Source on dividend payment to resident shareholders if the shareholders submit and register
+following documents mentioned in column no. 4 of the below table with the Company/ Company's RTA - Link Intime
+India Private Limited
+Annual Report 2019-20
+V.
+before the Record Date / Book Closure Date
+fixed for the payment of such dividend. Under no
+circumstances, any instruction received for waiver
+/ forgoing of the right to receive the dividend for
+any year after the Record Date / Book Closure
+Date fixed for the payment of such dividend for
+that year shall be given effect to.
+The instruction once given by a Shareholder
+intimating his waiver / forgoing of the right to
+receive the dividend for any year for interim,
+final or both shall be irrevocable and cannot be
+withdrawn for that particular year for such waived
+/ forgone the right to receive the dividend.
+But in case, the relevant Shares are sold by
+the same Shareholder before the Record Date
+/ Book Closure Date fixed for the payment of
+such dividend, the instruction once exercised by
+such earlier Shareholder intimating his waiver
+/ forgoing the right to receive dividend will be
+invalid for the next succeeding Shareholder(s)
+unless such next succeeding Shareholder(s)
+intimates separately in the prescribed form, about
+his waiving/forgoing of the right to receive the
+dividend for the particular year.
+VI. The Equity Shareholders who wish to waive /
+forgo their right to receive the dividend for any
+year can inform the Company in the prescribed
+form only after the beginning of the relevant
+financial year for which the right to receive the
+dividend is being waived / forgone by him.
+VII. The instruction by a Shareholder to the
+Company for waiving / forgoing the right to
+receive dividend for any year is purely voluntary
+on the part of the Shareholder(s). There is no
+interference with a Shareholder's Right to receive
+the dividend, if he does not wish to waive / forgo
+his right to receive the dividend. No action is
+required on the part of Shareholder who wishes
+to receive dividends as usual. Such Shareholder
+will automatically receive dividend as and
+when declared.
+VIII. The decision of the Board of Directors of the
+Company or such person(s) as may be authorised
+by Board of Directors of the Company shall be
+final and binding on the concerned Shareholders
+on issues arising out of the interpretation and / or
+implementation of these Rules.
+IX. These Rules can be amended by the Board of
+Directors of the Company from time to time as
+may be required.
+16. The members of erstwhile Tamilnadu Dadha
+Pharmaceuticals Limited; erstwhile Gujarat Lyka
+Organics Limited; erstwhile Phlox Pharmaceuticals
+Limited and erstwhile Ranbaxy Laboratories Limited;
+who have not yet sent their share certificates of
+erstwhile Tamilnadu Dadha Pharmaceuticals Limited;
+erstwhile Gujarat Lyka Organics Limited; erstwhile
+Phlox Pharmaceuticals Limited and erstwhile Ranbaxy
+Laboratories Limited, respectively for exchange with
+the share certificates of Sun Pharmaceutical Industries
+Limited, are requested to do so at the earliest, since
+share certificates of the erstwhile Tamilnadu Dadha
+Pharmaceuticals Limited; erstwhile Gujarat Lyka
+Organics Limited; erstwhile Phlox Pharmaceuticals
+Limited and erstwhile Ranbaxy Laboratories Limited
+are no longer tradable / valid.
+17. The members may be aware that the equity shares of
+the Company had been subdivided from 1 (One) equity
+share of 5/- (Rupees Five Only) each to 5 (Five)
+equity shares of 1/- each on November 29, 2010
+based on the Record Date of November 26, 2010. The
+members who have yet not sent their share certificates
+of 5/- (Rupees Five Only) each of the Company for
+exchange with new equity shares of 1/- each are
+requested to send the same to the Company's RTA
+since the old share certificates of ₹5/- (Rupees Five
+Only) each are no longer tradable.
+18. Pursuant to the amendments introduced by the Finance Act, 2020, the dividend income will be taxable in the hands
+of the shareholders w.e.f. April 1, 2020 and the Company is required to deduct tax at source from dividend paid
+to shareholders at the prescribed rates. However, no tax will be deducted on payment of dividend to the resident
+individual shareholders, if the total dividend paid does not exceed 5,000/-. The rate of tax deducted at source will
+vary depending on the residential status of the shareholder and documents registered with the Company.
+RESIDENT SHAREHOLDERS
+(i)
+Tax Deductible at Source for resident shareholders
+(ii)
+Sr.
+No.
+Rate of Deduction of
+Tax at Source
+Documents Required (if any)
+1
+2
+Valid PAN updated in the Company's Register of Members
+No PAN/Valid PAN not updated in the Company's
+Register of Members
+7.5%
+20%
+3
+Availability of lower/nil tax deduction certificate issued by
+Income Tax Department u/s 197 of Income Tax Act, 1961
+Rate specified in
+the Certificate
+No document required (if no exemption is sought)
+No document required (if no exemption is sought).
+Lower/nil tax deduction certificate obtained from
+Income Tax Authority
+<272
+The Transformation Journey
+Particulars
+OR Date of Birth (DOB)
+The Transformation Journey
+Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable for both
+demat shareholders as well as physical shareholders)
+277 >>
+• The list of accounts linked in the login should
+be mailed to helpdesk.evoting@cdslindia.com
+and on approval of the accounts they would be
+able to cast their vote.
+• After receiving the login details a Compliance
+User should be created using the admin login
+and password. The Compliance User would
+be able to link the account(s) for which they
+wish to vote on.
+• A scanned copy of the Registration Form
+bearing the stamp and sign of the entity should
+be emailed to helpdesk.evoting@cdslindia.com.
+Non-Individual shareholders (i.e. other than
+Individuals, HUF, NRI etc.) and Custodians are
+required to log on to www.evotingindia.com
+and register themselves in the
+"Corporates" module.
+•
+Shareholders and Custodians
+Notice
+(xx) Note for Non - Individual
+Members are encouraged to join the Meeting
+using Google Chrome (preferred browser),
+Safari, Internet Explorer, Microsoft Edge or
+Mozilla Firefox 22.
+remote e-voting will be eligible to attend the
+AGM. However, they will not be eligible to
+vote at the AGM.
+Shareholders who have voted through
+If any votes are cast by the shareholders through
+the e-voting available during the AGM and if
+the same shareholders have not participated in
+the meeting through VC/OAVM facility, then
+the votes cast by such shareholders shall be
+considered invalid as the facility of e-voting during
+the meeting is available only to the shareholders
+attending the meeting.
+Only those shareholders, who are present in the
+AGM through VC/OAVM facility and have not
+casted their vote on the Resolutions through
+remote e-voting and are otherwise not barred
+from doing so, shall be eligible to vote through
+e-voting system available during the AGM.
+The procedure for e-voting on the day of the
+AGM is same as the instructions mentioned above
+for remote e-voting.
+6.
+Members will be required to grant access to the
+web-cam to enable two-way video conferencing.
+• A scanned copy of the Board Resolution and
+Power of Attorney (POA) which they have
+issued in favour of the Custodian, if any, should
+be uploaded in PDF format in the system for
+the scrutinizer to verify the same.
+• Alternatively Non Individual shareholders
+are required to send the relevant Board
+Resolution/ Authority letter etc. together
+with attested specimen signature of
+the duly authorised signatory who are
+authorised to vote, to the Scrutinizer and
+to the Company at the email address viz;
+scrutinizer@sunpharma.com
+(designated email address by company), if they
+have voted from individual tab & not uploaded
+same in the CDSL e-voting system for the
+scrutinizer to verify the same.
+For Shareholders holding shares in Demat Form and Physical Form
+Annual Report 2019-20
+278
+Further the Members, by way of a special resolution at the
+25th AGM, had approved the maximum remuneration to be
+paid to Mr. Dilip S. Shanghvi, Managing Director for a period
+of 3 years with effect from April 1, 2019 to March 31, 2021,
+including the remuneration to be paid to him in event of
+loss or inadequacy of profits in any financial year during
+the aforesaid period, as recommended by the Nomination
+and Remuneration Committee and approved by the Board
+of Directors. It is now proposed to obtain approval of the
+Members for remuneration to be paid to Mr. Dilip Shanghvi
+for further period of two years i.e. from April 1, 2021
+to March 31, 2023, which is the remaining period of his
+present term of appointment.
+Mr. Dilip Shanghvi was re-appointed as Managing Director
+by way of a special resolution passed by the members at
+the 25th Annual General Meeting of the Company held on
+September 26, 2017 for a period of 5 (five) years effective
+from April 1, 2018 upto March 31, 2023.
+Item No. 6
+None of the Directors or Key Managerial Personnel or
+their relatives are in anyway concerned or interested in the
+above resolution as set out in Item no. 5 of this Notice.
+The Board recommends the resolution as set out at item
+no. 5 of the Notice for approval of the members as an
+Ordinary Resolution.
+Therefore, consent of the members of the Company is being
+sought for ratification of the remuneration payable to the
+Cost Auditors for the financial year ending March 31, 2021.
+In terms of provisions of Section 148(3) of the Companies
+Act, 2013 read with Companies (Audit and Auditors) Rules,
+2014, member's ratification is required for remuneration
+payable to the Cost Auditors.
+M/s. B M Sharma & Associates, Cost Accountants, have
+been appointed as the Cost Auditors by the Board of
+Directors of the Company on recommendation of the Audit
+Committee, for conducting audit of cost records pertaining
+to the formulations and bulk drugs activities of the
+Company for the financial year ending March 31, 2021 at a
+remuneration of 24,75,000/- (Rupees twenty four lakhs
+seventy-five thousand only) excluding reimbursement of out
+of pocket expenses and applicable taxes.
+Item No. 5:
+As required under Section 102 of the Companies Act, 2013,
+the following Explanatory Statement sets out material facts
+relating to the Special Business as set out at Item Nos. 5 and
+6 of the accompanying Notice dated May 27, 2020.
+EXPLANATORY STATEMENT PURSUANT TO
+SECTION 102 OF THE COMPANIES ACT, 2013
+(xxiii) The Scrutinizer will, immediately after the
+conclusion of voting at the 28th AGM, start
+scrutinizing the votes cast at the Meeting along
+with remote e-voting and prepare a consolidated
+Scrutinizer's Report and submit thereafter to
+the Chairman of the Meeting or any person
+authorised by him in writing. The result declared
+along with the consolidated Scrutinizer's Report
+will be placed on the Company's website at
+www.sunpharma.com and on the website of
+CDSL at www.evotingindia.com, as well as
+displayed on the notice board at the Registered
+Office and Corporate Office of the Company,
+within 48 hours of the conclusion of the Meeting.
+The Company will simultaneously forward
+the results to BSE Limited and National Stock
+Exchange of India Limited, where the shares of
+the Company are listed.
+022-23058542/43.
+(xxii) All grievances connected with the facility for
+voting by electronic means may be addressed
+to Mr. Rakesh Dalvi, Manager, (CDSL) Central
+Depository Services (India) Limited, A Wing,
+25th Floor, Marathon Futurex, Mafatlal Mill
+Compounds, NM Joshi Marg, Lower Parel
+(East), Mumbai - 400013 or send an email to
+helpdesk.evoting@cdslindia.com or call on
+5.
+4.
+(xxi) In case you have any queries or issues regarding
+attending AGM & e-Voting from the e-voting
+System, you may refer the Frequently Asked
+Questions ("FAQs") and e-voting manual available
+at www.evotingindia.com, under help section or
+write an email to helpdesk.evoting@cdslindia.
+com or contact Mr. Nitin Kunder (022-23058738)
+or Mr. Mehboob Lakhani (022-23058543) or
+Mr. Rakesh Dalvi (022-23058542).
+2.
+<276
+(xvii) You can also take a print of the votes cast
+by clicking on "Click here to print" option on
+the Voting page.
+(xvi) Once you "CONFIRM" your vote on the
+resolution, you will not be allowed to
+modify your vote.
+(xv) After selecting the resolution you have decided
+to vote on, click on "SUBMIT". A confirmation box
+will be displayed. If you wish to confirm your vote,
+click on "OK", else to change your vote, click on
+"CANCEL" and accordingly modify your vote.
+(xiv) Click on the "RESOLUTIONS FILE LINK" if you
+wish to view the entire Resolution details.
+(xiii) On the voting page, you will see "RESOLUTION
+DESCRIPTION" and against the same the option
+"YES/NO" for voting. Select the option YES or NO
+as desired. The option YES implies that you assent
+to the Resolution and option NO implies that you
+dissent to the Resolution.
+(xi) For shareholders holding shares in physical form,
+the details can be used only for e-voting on the
+resolutions contained in this Notice.
+The Transformation Journey
+will then directly reach the Company selection
+screen. However, shareholders holding shares in
+demat form will now reach 'Password Creation'
+menu wherein they are required to mandatorily
+enter their login password in the new password
+field. Kindly note that this password is to be
+also used by the demat holders for voting for
+resolutions of any other company on which they
+are eligible to vote, provided that company opts
+for e-voting through CDSL platform. It is strongly
+recommended not to share your password with
+any other person and take utmost care to keep
+your password confidential.
+(ix) After entering these details appropriately, click
+on "SUBMIT" tab.
+If both the details are not recorded with the depository or company please enter the member
+id / folio number in the Dividend Bank details field as mentioned in instruction (v).
+•
+Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded in your
+demat account or in the company records in order to login.
+Shareholders who have not updated their PAN with the Company/Depository Participant are
+requested to send an email to the Company's RTA at rnt.helpdesk@linkintime.co.in to obtain
+a sequence number for such login.
+3.
+•
+(x) Shareholders holding shares in physical form
+Annual Report 2019-20
+(xii) Click on the EVSN no. 200720007 for
+Sun Pharmaceutical Industries Limited.
+(xix) Shareholders can also cast their vote using CDSL's
+mobile app "m-Voting". The m-Voting app can be
+downloaded from respective Store. Please follow
+the instructions as prompted by the mobile app
+while Remote Voting on your mobile.
+1.
+the 28th AGM are as under:-
+(xviii) If a demat account holder has forgotten the login
+password then Enter the User ID and the image
+verification code and click on Forgot Password &
+enter the details as prompted by the system.
+Instructions for shareholders for e-voting during
+Please note that participants connecting from
+Mobile Devices or Tablets or through Laptop
+connecting via mobile hotspot may experience
+Audio/Video loss due to fluctuation in their
+respective network. It is therefore recommended
+to use stable Wi-Fi or LAN Connection to mitigate
+any kind of aforesaid glitches.
+Further shareholders will be required to allow
+Camera and use Internet with a good speed to
+avoid any disturbance during the meeting.
+Shareholders are encouraged to join the Meeting
+through Laptops / IPads for better experience.
+4.
+3.
+Shareholders will be provided with a facility to
+attend the AGM through VC/OAVM through the
+CDSL e-Voting system. Shareholders may access
+the same at https://www.evotingindia.com under
+shareholders/members login by using the remote
+e-voting credentials. The link for VC/OAVM will
+be available in shareholder/members login where
+the EVSN of Company will be displayed.
+1.
+1.
+Instructions for shareholders attending the 28th
+AGM of the Company through VC/OAVM are as
+under:
+For Demat shareholders - please provide Demat
+account details (CDSL-16 digit beneficiary ID or
+NSDL-16 digit DPID + CLID), Name, client master
+or copy of Consolidated Account statement,
+PAN (self attested scanned copy of PAN card),
+AADHAR (self attested scanned copy of Aadhar
+Card) to Company/RTA email id.
+For Physical shareholders - please provide
+necessary details like Folio No., Name of
+shareholder, scanned copy of the share certificate
+(front and back), PAN (self attested scanned
+copy of PAN card), AADHAR (self attested
+scanned copy of Aadhar Card) by email to
+Company/RTA email id.
+2.
+2.
+Process for those shareholders whose email
+addresses are not registered with the depositories
+for obtaining login credentials for e-voting for the
+resolutions proposed in this notice:
+Joydevpur, Gazipur, Bangladesh
+Mumbai - 400 083
+LBS Marg, Vikhroli (West),
+25 Taro Pharmaceuticals Inc.,
+Brampton, Ontario, Canada
+Link Intime India Pvt. Ltd.
+Registrars & Share Transfer Agents 26 Taro Pharmaceutical Industries Ltd.,
+Tel: (022)-49186000
+C 101, 247 Park,
+Fax: (022)-49186060
+5 Ponda, Goa, India
+rnt.helpdesk@linkintime.co.in
+Operational Manufacturing Plants
+1 Dewas, Madhya Pradesh, India
+2 Karkhadi, Gujarat, India
+3 Baddi, Himachal Pradesh, India
+4 Dadra, Dadra & Nagar Haveli, India
+Haifa Bay, Israel
+24 Sun Pharmaceutical (Bangladesh) Ltd.,
+27 Alkaloida Chemical Company Zrt,
+E-mail: sunpharma@linkintime.co.in
+23 Sun Pharmaceutical Industries
+(Australia), Port Fairy, Australia
+Non-executive and Non-Independent Director
+(Designation changed from Whole-time Director
+to Non-executive & Non independent Director
+w.e.f. May 29, 2019)
+21 Sun Pharmaceutical Medicare Ltd.,
+Baska, Gujarat, India
+Tiszavasvari, Kabay, Hungary
+Whole-time Director
+Mr. Kalyanasundaram Subramanian
+Whole-time Director
+Sudhir V. Valia
+Rekha Sethi
+Non-executive and Independent Director
+Non-executive and Independent Director
+Gautam Doshi
+Non-executive and Independent Director
+Chief Financial Officer
+22 Sun Pharmaceutical Industries
+(Australia), Latrobe, Australia
+C. S. Muralidharan
+Sunil R. Ajmera
+Auditors
+SRBC & Co. LLP
+Chartered Accountants, Mumbai
+9 Silvassa, Dadra & Nagar Haveli, India
+10 Ahmednagar, Maharashtra, India
+11 Ankleshwar, Gujarat, India
+12 Dahej, Gujarat, India
+13 Maduranthakam, Tamilnadu, India
+14 Malanpur, Madhya Pradesh, India
+15 Panoli, Gujarat, India
+16 Toansa, Punjab, India
+17 Sun Pharma Laboratories Ltd.,
+Guwahati, Assam, India
+18 Sun Pharma Laboratories Ltd.,
+Jammu, Jammu & Kashmir, India
+19 Sun Pharma Laboratories Ltd.,
+Setipool, Sikkim, India
+20 Sun Pharma Laboratories Ltd.,
+Ranipool, Sikkim, India
+Company Secretary
+28 Ranbaxy Egypt (L.L.C.),
+Taro Pharmaceuticals Inc.,
+130 East Drive, Brampton,
+Ontario L6T 1C1, Canada.
+29 Ranbaxy Malaysia Sdn. Bhd.,
+Kedah, Malaysia
+Sun Pharma Advanced research Centre,
+F.P.27, Part Survey No. 27, C.S. No. 1050,
+TPS No. 24, Village Tandalja, District,
+Vadodara 390 012, Gujarat.
+2 India
+17-B, Mahal Industrial Estate,
+Mahakali Caves Road, Andheri (East),
+Mumbai - 400 093, Maharashtra.
+3 India
+Village Sarhaul, Sector-18,
+Gurugram - 122 015, Haryana.
+4 Israel
+1 India
+Chemistry and Discovery Research
+5 Canada
+Sailesh T. Desai
+6 USA
+Ohm Laboratories Inc., Terminal Road,
+New Brunswick, New Jersey 08901, USA.
+SUN
+PHARMA
+SUN HOUSE
+Plot No. 201 B/1, Western Express Highway,
+Goregaon (E), Mumbai 400063, Maharashtra, India.
+Tel: (+91 22) 4324 4324, Fax: (+91 22) 4324 4343
+CIN: L24230GJ1993PLC019050
+www.sunpharma.com
+/Concept, content and design at AICL (hello@aicl.in)
+Israel, 14 Hakitor Street, P.O. Box 10347
+Haifa Bay, 2624761, Israel.
+October City, Giza, Egypt
+Major R&D centres
+Fax: (022)-4324 4343
+30 Ranbaxy Nigeria Limited.,
+Lagos (Magboro), Nigeria
+31 S.C Terapia S. A.
+Cluj, Romania
+32 JSC Biosintez, Penza, Russia
+33 Ranbaxy Pharmaceuticals., (Pty) Ltd.
+Roodepoort, Johannesburg, South Africa
+34 Chattem Chemicals Inc.,
+Chattanooga, US
+35 Ohm Laboratories Inc., New
+Brunswick, New Jersey, US
+email: secretarial@sunpharma.com
+36 Ohm Laboratories Inc., North Brunswick,
+NJ, New Jersey, US
+Billerica, Massachusetts, US
+38 Pola Pharma Inc., Saitama, Japan
+Offices
+Registered office
+Sun Pharma Advanced Research Centre
+(SPARC), Tandalja,
+Vadodara 390 012, Gujarat.
+Corporate Office
+Sun House, CTS No. 201 B/1,
+Western Express Highway,
+Goregaon (E), Mumbai 400 063,
+Maharashtra.
+CIN: L24230GJ1993PLC019050
+Tel: (022)-4324 4324
+37 Pharmalucence Inc.,
+Managing Director
+Alfa Infraprop Private Limited
+Israel Makov
+Chairman
+81 Years
+Mr. Israel Makov is a Non-executive Chairman of the Company since May 29, 2012. He is
+also the former President and CEO of Teva Pharmaceutical Industries Ltd. He joined Teva
+in 1995 and led the company's global expansion, managing over 12 acquisitions, two of
+which were the largest M&A deals in the Israeli history at the time. Under Mr. Makov's
+leadership, Teva became the undisputed global leader in the generic pharmaceutical
+industry and a global leader in the treatment of Multiple sclerosis.
+He is Chairman of BioLight - an emerging global ophthalmic company focused on the
+discovery, development and commercialisation of products for ophthalmic conditions
+and Chairman of Micromedic Technologies Ltd. - a cluster of companies engaged in
+cancer diagnostics.
+He is the former Chairman of Given Imaging - the developer and world's leading provider
+of capsule endoscopy and Netafim - the pioneer and global leader in smart irrigation
+solutions.
+He is a member of the Executive Board & Management Committee of the Weizmann
+Institute of Science, on the Board of Governors of the Technion - Israel Institute of
+Technology, President of the Friends of Schneider Children's Medical Center of Israel and
+Director at Yeda Research and Development Company Ltd.
+Mr. Israel Makov holds a B.Sc. in Agriculture and M. Sc in Economics from the Hebrew
+University, Jerusalem.
+May 29, 2012
+Date of First appointment on the Board:
+Directorship held in other companies (excluding
+foreign companies & section 8 companies):
+Membership / Chairmanships of Committees of
+other public Companies:
+Nil
+Mr. Israel Makov
+Nil
+No. of Shares held in the Company (singly or
+jointly as first holder) as on March 31, 2020:
+Nil
+280
+The Transformation Journey
+Annual Report 2019-20
+Particulars
+Age
+Brief resume of the Director including nature of
+expertise in specific functional areas:
+Date of First appointment on the Board:
+Directorship held in other companies (excluding
+foreign companies & section 8 companies):
+Inter-se Relationship between Directors:
+Membership / Chairmanships of Committees of
+other public Companies:
+Brief resume of the Director including nature of
+expertise in specific functional areas:
+Particulars
+The Transformation Journey
+Annual Report 2019-20
+The maximum remuneration to Mr. Dilip S. Shanghvi,
+approved by the members at the 25th AGM for the
+period from April 1, 2019 to March 31, 2021, was 8.10
+crores per annum, within which limit the Nomination
+and Remuneration Committee and the Board approve
+the remuneration to be paid to Mr. Dilip S. Shanghvi. The
+present actual remuneration paid to Mr. Dilip S. Shanghvi
+for the year 2019-20 is 4.31 crores per annum. Therefore
+it is proposed to the members that the maximum limit of
+8.10 crores per annum be continued as his maximum
+remuneration for remaining period of his present term of
+appointment i.e. from April 1, 2021 to March 31, 2023. This
+maximum remuneration has also been recommended and
+approved by the Nomination and Remuneration Committee
+and the Board of Directors of the Company.
+Pursuant to provisions of Section 197 read with Schedule V
+of the Act, in case the Company has no profit/ inadequate
+profits in any financial year during the tenure of the
+Director, the minimum remuneration shall be paid to such
+Director, as may be decided by the Board of Directors, if
+the approval of members is obtained by way of Special
+Resolution. Additionally, under Regulation 17 (6) (e) of SEBI
+(Listing Obligations & Disclosure Requirements) Regulations
+2015 (as amended), members approval by way of Special
+Resolution is required to pay remuneration to a Director
+who is a promoter of the Company, in case, such annual
+remuneration is 2.5% of the net profit of the Company or *5
+crores, whichever is higher. The net profit of the Company
+is not inadequate presently. However for any reason in
+future years, the profits are inadequate or are absent in
+terms of the Act or SEBI (Listing Obligations and Disclosure
+Requirements Regulations), 2015 during the term of
+Mr. Dilip S. Shanghvi, it is proposed to seek members'
+approval by Special Resolution, to enable the Company to
+pay Minimum Remuneration as per the proposed resolution
+to Mr. Dilip Shanghvi, for his remaining tenure as the
+Managing Director.
+Members' approval is therefore sought for maximum
+remuneration to be paid to Mr. Dilip S. Shanghvi, as stated
+aforesaid and detailed in the resolution, for the remaining
+period of his term of appointment, that is, from April 1,
+2021 to March 31, 2023, including the remuneration to be
+paid to him in event of loss or inadequacy of profits in any
+financial year during the aforesaid period, as recommended
+by the Nomination and Remuneration Committee and
+approved by the Board of Directors.
+It may be noted that the main terms and conditions of
+Mr. Dilip S. Shanghvi's appointment, other than the term
+of remuneration as stated aforesaid, shall remain the
+same as per the resolution passed by the members at the
+25th Annual General Meeting of the Company held on
+September 26, 2017 and agreement dated September 28,
+2017, between the Company and Mr. Dilip S. Shanghvi.
+This explanatory statement and the Resolution set out at
+Item No. 6 of this Notice may also be read and treated as
+disclosure in compliance with the requirements of Section
+190 of the Companies Act, 2013.
+The copy of the draft revised agreement with respect to
+the term of remuneration, to be entered into with Mr. Dilip
+S. Shanghvi is available for inspection by any member as
+detailed in point no. 12 of Notes to Notice of this 28th
+Annual General Meeting.
+Age
+Mr. Dilip S. Shanghvi, Managing Director of the Company is
+highly experienced and controls the affairs of the Company
+as a whole under the direction of the Board of Directors of
+the Company. He has successfully and in a sustained way
+contributed significantly towards growth in performance
+of the Company. He has extensive experience in the
+pharmaceutical industry and is actively involved inter alia
+in international pharmaceutical markets, business strategy,
+business development functions of the Company.
+The Board recommends the Resolution as set out at Item
+no. 6 of the Notice for approval of the Members as a
+Special Resolution.
+None of the Directors or Key Managerial Personnel of
+the Company and their relatives, other than Mr. Dilip S.
+Shanghvi to whom this resolution relates and Mr. Sudhir V.
+Valia, being brother-in-law of Mr. Dilip S. Shanghvi, are in
+any way concerned or interested in the Resolution as set
+out at Item no. 6 of this Notice.
+279 »
+Notice
+PROFILE OF DIRECTORS
+(Details of Directors proposed to be appointed/ reappointed)
+As required under Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing
+Regulations") and as required under Secretarial Standard on General Meetings issued by the Institute of Company
+Secretaries of India (SS - 2), the particulars of Directors who are proposed to be appointed/ reappointed/whose terms of
+remuneration are being fixed at this 28th Annual General Meeting, are given below:
+The details of Board and Committee Meetings attended by these Directors during the year 2019-20 are stated in the
+Corporate Governance Report which forms part of this Annual Report.
+The details of remuneration, wherever applicable, are provided in the respective resolution(s).
+He is recipient of several awards in the past years such
+as Entrepreneur of the year AIMA (All India Management
+Association); NDTV Business Leadership Award –
+Pharmaceutical - 2016; JRD TATA Corporate Leadership
+Award AIMA (All India Management Association); Economic
+Times Business Leader of the Year Award; CNBC-
+TV18, Outstanding Business Leader of the Year; Forbes
+Entrepreneur For The Year; World Entrepreneur of the
+Year Ernst And Young; Indian of the Year (Business) CNN
+IBN; Businessman of the Year Business India; Entrepreneur
+of the Year Economic Times; CEO of the Year Business
+Standard; First Generation Entrepreneur of the Year CNBC
+TV 18; Pharmaceutical Company IMC Juran Quality Medal;
+Entrepreneur of the Year (Healthcare And Life Sciences)
+Ernst And Young.
+Inter-se Relationship between Directors:
+No. of Shares held in the Company (singly or
+jointly as first holder) as on March 31, 2020:
+Mr. Sudhir V. Valia
+Mr. Dilip S. Shanghvi
+64 Years
+Mr. Dilip S. Shanghvi is a graduate in commerce from the Kolkata University. He is the
+Managing Director of the Company and Chairman & Managing Director of Sun Pharma
+Advanced Research Company Ltd. He is the founding partner of Sun Pharmaceutical
+Industries, a firm which was later converted into Sun Pharmaceutical Industries Limited
+(SPIL) in 1993. Under his leadership, SPIL has recorded an all-round growth in business.
+He has extensive experience in the pharmaceutical industry. As the promoter of SPIL, he
+has been actively involved in international pharmaceutical markets, business strategy,
+business development and research and development functions in the Company.
+Mr. Shanghvi was conferred with the prestigious 'Padma Shri' award by the Hon'ble
+President of India in the year 2016. He is also recipient of several awards as detailed
+under Item No. 6 of the Explanatory Statement.
+March 1, 1993
+Sun Pharma Advanced Research Company Limited
+Sun Petrochemicals Private Limited
+Alfa Infraprop Private Limited
+Aditya Clean Power Ventures Private Limited
+Sun Pharma Advanced Research Company Limited - Member - Corporate Social
+Responsibility Committee; Member - Fund Management Committee; Member -Securities
+Allotment Committee; Chairman - Risk Management Committee
+No. of Shares held in the Company (singly or
+jointly as first holder) as on March 31, 2020:
+Mr. Dilip S. Shanghvi is Brother-in-law of Mr. Sudhir V. Valia, Director
+23,02,85,690 Equity Shares
+Notes
+Notes
+Corporate Information
+Board of Directors
+6 Halol, Gujarat, India
+7
+Mohali, Punjab, India
+8
+Paonta Sahib, Himachal Pradesh, India
+282
+Inter-se Relationship between Directors:
+Membership / Chairmanships of Committees of
+other public Companies:
+Date of First appointment on the Board:
+Directorship held in other companies (excluding
+foreign companies & section 8 companies):
+63 Years
+Mr. Sudhir V. Valia holds a Bachelor's degree in Commerce from University of Mumbai
+and is also a qualified Chartered Accountant with more than three decades of taxation
+and finance experience. He has been the Director of Sun Pharmaceutical Industries
+Limited since 1994 and is also on the Board of Taro Pharmaceutical Industries Ltd.
+Mr. Valia has won several awards including CNBC TV 18's CFO of the Year in the
+Pharmaceutical and Healthcare Sectors for two consecutive years - 2011 and 2012, as
+well as in the year 2009. He is actively involved in the field of social activities and he was
+awarded the Adivasi Sevak Puraskar (2008-2009) by the Government of Maharashtra
+for his contribution towards the welfare of tribals, particularly in the field of education
+in his capacity as visionary and Director of Shantilal Shanghvi Foundation. He is also a
+Director of Krishna Vrundavan Pratishthan.
+January 31, 1994
+Aditya Clean Power Ventures Private Limited
+Sun Petrochemicals Private Limited
+Suraksha Asset Reconstruction Limited
+Aditya Thermal Energy Private Limited
+Fasttrack Housing Finance Limited
+ITI Mutual Fund Trustee Private Limited
+ITI Management Advisors Limited (Formerly known as ITI Reinsurance Limited)
+Universal Enterprises Private Limited
+Venerate Properties Private Limited
+Sun Pharma Advanced Research Company Limited - Member of Audit Committee;
+Member of Stakeholder's Relationship Committee; Chairman of Corporate Social
+Responsibility Committee; Chairman of Fund Management Committee; Member of
+Securities Allotment Committee; Member of Risk Management Committee
+Sun Pharma Laboratories Limited - Member of Audit Committee; Chairman of Corporate
+Social Responsibility Committee
+Fasttrack Housing Finance Limited - Chairman of Audit Committee; Chairman of Risk
+Management Committee
+Mr. Sudhir V. Valia is Brother-in-law of Mr. Dilip S. Shanghvi, Managing Director of the
+Company
+14,345,019 Equity Shares
+281 >>
+Notice
+Particulars
+Age
+Brief resume of the Director including nature of
+expertise in specific functional areas:
+Dilip S. Shanghvi
+Vivek Chaand Sehgal
+Sun Pharma Advanced Research Company Limited;
+Sun Pharma Laboratories Limited
+• Key focus geographies include Russia, Romania, Brazil, Mexico, South Africa, and
+complementary and affiliated markets
+(In Bn)
+After Minority Interests
+(excluding Exceptional Items)
+Adjusted Net Profit
+39
+65
+FY19⚫
+59
+Adjusted Earnings Per Share
+(In Bn)
+Key Performance Indicators
+Statutory Reports
+• International
+India
+•
+453
+FY20⚫
+EBITDA**
+414
+(excluding Exceptional Items)
+(per share)
+40
+Ratio
+Annual Report 2019-20
+Table 6 Consolidated
+Financial Ratios
+The Transformation Journey
+Management Discussion and Analysis
+16.8
+FY20⚫
+FY20⚫
+297
+FY20⚫
+271
+(In Bn)
+Property, Plant and
+Equipment and Other
+Intangible Assets (at cost)
+16.2
+FY19 •
+FY19⚫
+Return on Net
+FY19⚫
+1,149
+FY20⚫
+FY19 •
+(In Bn)
+Net Worth
+(In Bn)
+Market Capitalisation
+as on March 31
+(per share)
+14
+Book Value Per Share
+323
+FY19⚫
+(In Bn)
+Gross Sales
+FY20⚫
+287
+FY19⚫
+FY20 ⚫
+845
+17
+FY20
+31
+FY20
+##ROW includes Western Europe, Canada, Japan, Australia, New Zealand and other markets
+**EBITDA = (Revenue from contracts with customers) - (cost of material consumed + purchase of stock-in-trade + changes in inventories of finished
+goods, stock-in-trade and work-in-progress + employee benefits expense + other expenses)
+(%)
+Business Mix
+60
+6
+69
+• Active Pharmaceutical
+Rest of World (ROW)##
+⚫ Emerging markets
+• Indian branded generics
+⚫ US business
+30
+33
+Ingredients (API) and others
+(%)
+%
+FY 20
+Return on Net
+Reasons if variance is more than 25%
+Variance
+FY 19
+FY 20
+Unit
+Ratio
+%
+Table 7 Standalone
+25%
+9.3
+11.6
+%
+Net Profit Margin
+Margin
+-3%
+Increase in Net Profit
+20.7
+13.2
+268%
+4.6
+9.0
+times
+Interest Coverage Ratio
+(on cost of goods sold)
+32%
+1.3
+3.6
+1.7
+Inventory Turnover
+-1%
+1.9
+1.9
+times
+Debtors Turnover
+Worth
+times
+Unit
+20.0
+Operating Profit
+1.2
+times
+Inventory Turnover (on
+6%
+3.2
+3.4
+times
+1.0
+Debtors Turnover
+Reasons if variance is more than 25%
+Worth
+29%
+6.4
+8.3
+Variance
+FY 19
+Return on Net Worth is higher for the year ended
+31 March 2020 due to higher Profit After Tax
+%
+17%
+Interest Coverage Ratio
+Reduction in debt and increase in Net Worth
+-28%
+0.24
+0.17
+times
+Debt/Equity Ratio
+12%
+cost of goods sold)
+1.8
+times
+Current Ratio
+Interest coverage ratio is higher for the year ended
+31 March 2020 due to higher Profit Before Interest and Tax
+83%
+10.0
+18.4
+times
+2.0
+Business-wise Revenue Share
+189
+FY20⚫
+Distribution agreement
+2015
+US
+Acquired InSite Vision Inc.
+2015
+with AstraZeneca
+India
+India
+Distribution agreement
+Foray into Japan
+Japan
+Acquired 14 brands from Novartis
+2016
+for Tidrakizumab
+Tildrakizumab for Psoriasis
+Europe
+2016
+Licensing agreement with Almirall for
+with AstraZeneca
+Sun Pharma Ranbaxy Merger
+Acquired Caraco
+1997
+Industries Ltd.
+Acquired Taro Pharmaceutical
+2010
+US
+Acquired DUSA Pharma, Inc.
+2015
+2012
+Acquired Pharmalucence
+2014
+Global
+markets
+In-licensing agreement with Merck for
+Tildrakizumab, a biologic for psoriasis
+2014
+markets
+Global
+US
+Israel
+2016
+presence in Russian market
+Expands nephrology portfolio in
+India - for treating anaemia in
+hemodialysis patients.
+Rationale
+China
+Mainland
+Licensing agreement with AstraZeneca UK
+for ready-to-use infusion oncology products
+2019
+India
+Access to oncology market in
+Mainland China
+In-licensed Triferic brand from Rockwell
+Medical Inc. (USA)
+Country
+Particulars
+Year
+Annual Report 2019-20
+Milestones Across Decades
+Table 5
+The Transformation Journey
+2020
+Access to European market
+2019
+Tildrakizumab, Cequa and eight
+Local manufacturing capability to enhance
+Russia
+Acquired Biosintez
+2016
+Cequa and Odomzo
+Enhances specialty pipeline
+Global
+Licensing agreement with CMS for
+Acquired global rights for
+Access to Japanese dermatology market
+Japan
+Acquired Pola Pharma in Japan
+2018
+generic products
+Access to greater China market
+Greater
+China
+2016
+Distribution services agreement in India for brand
+'Oxra' and 'Oxramet'Ⓡ (brands of dapagliflozin, used
+for diabetes treatment
+Strengthens specialty ophthalmic portfolio in US
+Distribution services agreement in India for brand
+'Axcer'Ⓡ (brand of ticagrelor, used for the treatment
+of acute coronary syndrome)
+BUSINESSES
+• FY20 sales: *19,159 Million
+• Portfolio of 323 approved DMF/CEP products
+• Backward integration provides cost competitiveness and supply reliability
+API business
+6
+Annual Report 2019-20
+5 |
+The Transformation Journey
+Data as on March 2020
+• Focus on payback timelines
+• Ensure acquisitions yield high
+return on Investment
+• Focus on access to products,
+technology, market presence
+• Use acquisitions to bridge
+critical capability gaps
+Business development
+• Rationalise global
+manufacturing footprint
+<20
+• Focus on vertically
+integrated operations
+Global consumer healthcare business
+• Operates in 20+ countries
+173
+FY19 •
+<22
+21 >>>
+• Increase share of specialty business
+• Aim for sustainable and profitable growth
+• Focus on improving ROCE
+Targets for future
+• Among the top 10 consumer healthcare companies in India
+• Future investments directed towards
+differentiated products as well as enhancing
+presence in key markets
+Balance profitability and investments for future
+• FY20 sales: 45,210 Million
+• Portfolio of long-listed products servicing the Japanese market
+• Products include differentiated offerings for hospitals, injectables and generics
+for retail market
+• Presence across majority of markets in Western Europe, Canada, Japan, Australia
+and New Zealand
+Rest of the world
+4
+• Increasing contribution of specialty
+and complex products
+• Optimise operational costs
+Cost leadership
+CGMP regulatory standards
+(98 ANDAS and 5 NDAs awaiting approval)
+⚫ 9th largest generics company in the US with a strong pipeline
+US business
+The business model involves four critical growth strategies to drive
+sustainable growth and achieve higher efficiencies. Sun Pharma is
+strategically poised to capitalise on the emerging opportunities in the global
+pharmaceutical sector, to deliver consistent long-term stakeholder value.
+Management Discussion and Analysis
+Business Model
+Statutory Reports
+• Presence in generics, specialty and branded segments with 538 approved products.
+19 >>
+Detroit, US
+Access to dermatology generic portfolio
+manufacturing facilities at Israel and Canada
+Access to specialty drug-device combination in the
+dermatology segment
+Access to sterile injectable capacity in the US
+Strengthening the specialty product pipeline
+specialty generic pharma Company, No.1 Pharma
+Company in India and strong positioning in
+emerging markets
+Strengthen position as the 5th largest global
+Entry into the US market
+• FY20 sales: *105,425 Million
+1
+Indian branded generics business
+• Ensure sustained compliance with global
+• Focus on speed to market
+• Achieve differentiation by focusing on
+technically complex products
+Enhance share of specialty business globally
+Create sustainable revenue streams
+Growth Strategies
+3
+FOCUS
+2
+• FY20 sales: *55,044 Million
+and Central Europe
+• Presence in ~80 countries across Africa, Americas, Asia and Eastern
+Emerging markets
+• FY20 sales: *97,102 Million
+• Leading position in high growth chronic therapies
+• Ranked No. 1 across 11 classes of doctors
+• No.1 company in the Indian pharmaceutical market
+96%
+Current Ratio
+• Focus on key markets - achieve critical mass
+1.1
+Statutory Reports
+Management Discussion and Analysis
+Milestones targeted for future
+• Enhance share of specialty/branded business
+• Develop and commercialise complex generics and products with high entry barriers
+• Focus on improving supply-chain efficiencies to ensure best-in-class customer service standards
+INDIA BRANDED GENERIC BUSINESS?
+30%
+Revenue share
+for FY20
+No.1
+Market position
+with 8.2%
+market share
+No.1
+Rank by prescriptions
+across 11 different
+classes of doctors
+97 Bn
+27 »
+Revenue in FY20
+Sun Pharma brands
+among the country's
+top 300 brands
+Sun Pharma commands 8.2% share of the Indian
+pharmaceutical market, with continued leadership in
+the high-growth chronic segments and specialisation
+in technically complex products. It has a strong sales
+force of 9,700+, which reaches 400,000+ doctors
+across the country.
+Table 9 Sun Pharma - India prescription ranking³
+Segment
+Psychiatrists
+February 2019
+February 2020
+1
+1
+Neurologists
+1
+1
+Cardiologists
+1
+1
+31
+Orthopaedic Specialists
+Others •
+Antibiotic⚫
+(Nos.)
+FY16⚫
+413
+584
+FY17 ⚫
+427
+561
+⚫ANDAS approved
+FY18⚫
+22
+422
+571
+FY19⚫
+453
+Gastro⚫
+581
+483
+ANDA approvals by therapeutic area as of March 2020
+87
+62
+99
+CFFFFFFÆ
+Skin⚫
+CNS⚫
+CVS⚫
+Pain⚫
+47
+Allergy⚫
+Oncology⚫
+Metabolism⚫
+FY20⚫
+1
+1
+Chart 9
+17
+• Urology
+⚫ Gastroenterology
+12
+⚫ Others
+• Dermatology
+• Respiratory
+•
+Vitamins/Minerals/ 4
+Nutrients
+• Gynaecology
+⚫ Ophthalmology
++33 3
+Chest Physicians
+General Surgeons
+Neuro-psychiatry
+Gynaecologists
+2
+2
+2
+2
+2
+2
+4
+• Revenue from the India formulations business increased
+by 32% to 97,102 Million. Excluding the one-time
+impact of a shift in product distribution undertaken last
+year, the underlying growth was at ~15%.
+• Key enablers of progress were the following:
+Leading position in high-growth chronic therapies
+Broad product portfolio, including new-age,
+in-licensed patented products
+High brand equity with doctors
+28
+times
+FY20 highlights
+18
+• Cardiology
+2
+Sun Pharma - India therapeutic revenue break-up?
+Diabetologists
+1
+1
+Gastroenterologists
+1
+1
+(%)
+Nephrologists
+1
+1
+Consultant Physicians
+1
+1
+C
+Urologists
+1
+1
+Ophthalmologists
+9
+1
+2
+ENT Specialists
+Chart 8
+10
+⚫ Diabetology
+Anti-infectives
+1
+1
+Dermatology
+1
+227644
+• ANDAS filed
+⚫ Pain/Analgesics
+438
+potential products. This collaboration for developing
+new drugs is part of Sun Pharma's broader strategy
+for enhancing its global specialty pipeline. This
+agreement will facilitate the addition of pre-clinical
+candidates to Sun Pharma's global specialty pipeline.
+A successful clinical development of these potential
+compounds may enable Sun Pharma to commercialise
+pharmaceutical products for various therapeutic
+indications over the long-term.
+In August 2019, Sun Pharma granted an exclusive
+license to a subsidiary of China Medical System
+Holdings Ltd. (CMS) to develop and commercialise
+seven generic products in Mainland China. Till date,
+Sun Pharma and the CMS collaboration covers a
+total of eight generic products, with an addressable
+market size of about US$1 Billion (as per IQVIA data) in
+Mainland China. This collaboration gives Sun Pharma
+an entry into the Chinese generic pharmaceutical
+market. With more than 65% generics penetration,
+China represents a good opportunity for generic
+pharmaceutical companies.
+⚫ In October 2019, Sun Pharma presented long-term
+follow-up data from ILUMYATM Phase-3 reSURFACE 1
+and reSURFACE 2 trials. The data showed that
+the significant response rates seen in the initial
+52 and 64 weeks, respectively, were maintained
+over four years for people with moderate-to-
+severe plaque psoriasis, with more than half the
+participants achieving at least 90% skin clearance
+[Psoriasis Area Sensitivity Index (PASI) 90] with no
+new safety concerns recorded. Additional study
+analyses showed that the 75-100% skin clearance
+achieved with ILUMYATM treatment over three years,
+was sustained equally in people with and without
+metabolic syndrome, a common condition in people
+with psoriasis.
+⚫ In October 2019, Sun Pharma commercialised
+CEQUA (Cyclosporine ophthalmic solution) 0.09%
+in the US. CEQUA, which offers the highest
+concentration of cyclosporine for ophthalmic use
+approved by the US Food and Drug Administration
+(FDA), is indicated to increase tear production in
+patients with keratoconjunctivitis sicca (dry eye),
+an inflammatory disease that afflicts more than 16
+Million people in the US. CEQUA is the first and only
+FDA-approved cyclosporine treatment delivered
+with nanomicellar (NCELLTM) technology, which helps
+to improve the bioavailability and physicochemical
+stability of cyclosporine, resulting in improved ocular
+tissue penetration. CEQUA's launch significantly
+enhances Sun Pharma's specialty ophthalmology
+portfolio in the US.
+• In October 2019, Sun Pharma launched DRIZALMA
+SPRINKLE™ (duloxetine delayed-release capsules)
+in the US for oral use. DRIZALMA SPRINKLE is a
+Serotonin and Norepinephrine Reuptake Inhibitor
+K24
+The Transformation Journey
+Annual Report 2019-20
+(SNRI) designed for the treatment of various
+neuro-psychiatric and pain disorders in patients,
+who have difficulty swallowing - a problem that
+is estimated to affect approximately 30-35%
+of long-term care residents. The availability of
+DRIZALMA SPRINKLE expands Sun Pharma's portfolio
+of innovative formulation products designed for
+individuals with swallowing difficulties, the risk of
+which increases with age and exposure to age-related
+diseases and conditions - including depression,
+anxiety, and pain disorders. DRIZALMA SPRINKLE
+joins EZALLOR SPRINKLE™ (Rosuvastatin) and
+KAPSPARGO SPRINKLE™ (metoprolol succinate)
+extended-release capsules as the third product in
+Sun Pharma's US portfolio designed for individuals in
+long-term care.
+• In November 2019, Sun Pharma entered into a
+licensing agreement with AstraZeneca UK Ltd.
+(AstraZeneca) to introduce certain novel ready-to-use
+(RTU) infusion oncology products in China.
+The agreement will help to bring cost-effective and
+quality drugs to patients in China. As per the terms
+of the agreement, Sun Pharma will be responsible for
+the development, regulatory filings and manufacturing
+of the products covered in the agreement, while
+AstraZeneca will exclusively promote and distribute
+these products in China. This licensing agreement
+further enhances Sun Pharma's product portfolio for
+the China market.
+⚫ In January 2020, Sun Pharma entered into
+exclusive licensing and supply agreements with
+Rockwell Medical Inc. (Rockwell), to commercialise
+Rockwell's Triferic, a proprietary iron replacement
+and haemoglobin maintenance drug, for treating
+anaemia in hemodialysis patients in India.
+⚫ In August 2019, Sun Pharma entered into a global
+licensing agreement with the CSIR - Indian Institute
+of Chemical Technology, Hyderabad (CSIR-IICT), for
+patents related to certain compounds with potential
+therapeutic activity across multiple indications in
+Sun Pharma's specialty focus areas. Under the terms
+of the license agreement, Sun Pharma gets exclusive
+global license for the said patents and any other
+future patents covered in the agreement. Sun Pharma
+paid CSIR-IICT an upfront payment and will also
+pay for potential development, regulatory and sales
+milestone payments totalling up to 2.40 Billion, plus
+royalties on net sales from commercialisation of the
+products developed using these patents. Sun Pharma
+will be responsible for development, regulatory
+filings, manufacturing and commercialisation of these
+Triferic is already approved in the US. As per the terms
+of the agreement, Sun Pharma will be the exclusive
+development and commercialisation partner for
+Triferic during the term of the agreement, subject
+to its approval in India. In consideration for the
+license, Rockwell is eligible for upfront and milestone
+payments as well as royalty on net sales. Triferic is
+indicated to replace iron and maintain haemoglobin in
+hemodialysis patients via dialysate, during each dialysis
+treatment. Triferic has a unique and differentiated
+mechanism of action, which has the potential to
+benefit dialysis patients.
+surrounding timing of dosing, and makes absorption
+more predictable.
+• In March 2020, Sun Pharma committed to donate
+Hydroxychloroquine (HCQS), Azithromycin, and
+other related drugs and hand sanitisers to support
+India's COVID-19 response. It also donated HCQS
+in the US market.
+• In March 2020, Sun Pharma launched a buyback offer
+in India to buy back 40 Million shares at a price up to
+*425 per equity share, totalling to about 17 Billion.
+FY21 Outlook
+The COVID-19 outbreak and the lockdown across
+countries manifested into a healthcare-cum-economic
+crisis. The situation is uncertain and it is difficult to
+predict when economies will fully normalise. Hence,
+FY21 is likely to be a challenging year.
+The world population at large, will have to learn to
+co-exist with the COVID-19 virus till an effective
+vaccine is developed and a significant portion of the
+world population is inoculated with the vaccine. Many
+existing medicines are being evaluated as potential
+options in COVID-19 treatment. Any positive outcome
+from the clinical trials of these products may also help in
+treating patients.
+This co-existence with the virus will remarkably change
+things in the future:
+• Since pharmaceuticals are viewed as essential items,
+the pharmaceutical industry has witnessed relatively
+less adverse impact of the pandemic, unlike other
+sectors. Sun Pharma continues to manufacture
+and distribute its products across the world
+despite the lockdown.
+• The economic disruption linked to COVID-19 will
+take time to recover, with the outlook for economic
+activities globally, being inhibited. It may have a
+consequential effect on GDP across countries,
+bearing adverse impact on consumption of
+pharmaceutical products.
+• It is possible that a certain percentage of the global
+workforce will continue to work from home, which
+will result in significant change in their consumption
+pattern of products and services.
+• Social distancing may become the new normal for
+everybody till the virus is contained. This will require
+individuals and corporates to adopt safer protocols in
+offices, manufacturing facilities, travelling, meetings,
+amongst others.
+• Sales force visit to doctors had stopped as clinics
+and hospital OPD consultations, were temporarily
+25 >>>
+Statutory Reports
+• In February 2020, Sun Pharma launched ABSORICA
+LD™ (isotretinoin) capsules in the US for the
+management of severe recalcitrant nodular acne in
+patients 12 years of age and older. ABSORICA LD
+is the only isotretinoin formulation to feature Sun
+Pharma's micronisation technology, which utilises
+micronised particles to optimise absorption at a
+20% lower dose. ABSORICA LD can be taken with
+or without food. It makes visibly clearer skin possible
+within just five months, removes the uncertainty
+• In August 2019, Sun Pharma announced the filing
+of an application in Japan for manufacturing and
+marketing authorisation of ILUMYA (Tildrakizumab) for
+moderate-to-severe psoriasis with the Pharmaceuticals
+and Medical Devices Agency (PMDA), Japan.
+Sun Pharma is committed to growing its global
+dermatology franchise, with ILUMYATM as its lead
+product. The Company continues to build its pipeline
+and capabilities in this important therapeutic area
+of significant unmet need. This filing in Japan is a
+step forward for Sun Pharma in expanding the global
+franchise for ILUMYATM. It offers a potential new
+treatment option to patients who struggle everyday
+with the chronic nature of these aliments.
+⚫ In July 2019, Sun Pharma announced the US launch of
+EZALLOR SPRINKLET (Rosuvastatin) capsules for the
+treatment of three types of elevated lipid disorders
+in people who have difficulty swallowing, a problem
+that is estimated to affect approximately 30-35%
+of long-term care residents. With the introduction
+of EZALLOR SPRINKLE, Sun Pharma continued its
+commitment of providing a portfolio of innovative
+formulation products to address the needs of a specific
+patient segment.
+• In June 2019, Sun Pharma announced licensing
+agreements with a subsidiary of China Medical
+System Holdings Ltd. (CMS) for the development and
+commercialisation of two of its specialty products
+- Tildrakizumab (for psoriasis and psoriatic arthritis)
+and Cyclosporine A 0.09% (CSA) eye drops (for dry
+eye disease) in Greater China. Under terms of these
+licensing agreements, CMS paid Sun Pharma an initial
+upfront payment, and will also pay regulatory and
+sales milestone payments, and royalties on net sales.
+CMS will be responsible for development, regulatory
+filings and commercialisation of these products in
+China. These licensing agreements mark Sun Pharma's
+entry into the Greater China market, which is the
+second largest pharmaceutical market globally. This is
+also a step forward in Sun Pharma's efforts towards
+accessing important markets for its specialty products.
+0.8
+572
+27%
+Return on Net Worth is higher for the year ended
+31 March 2020 due to higher Profit After Tax
+On account of better revenue from contracts with
+customers, which grew by 22%
+Interest Coverage ratio is higher for the year ended
+31 March 2020 due to higher Profit Before Interest
+and Tax
+Both Revenue from contract with customers as well as
+Net Profit during the period has increased resulting in
+improved current ratio
+Debt/Equity Ratio
+times
+0.26
+0.28
+Operating Profit
+%
+17.5
+12.6
+Margin
+On account of better revenue from contracts with
+customers which grew by 22%, along with cost
+containment
+Management Discussion and Analysis
+Statutory Reports
+23 >>>
+patients receiving 100 mg or 200 mg of ILUMYATM
+on a quarterly dosing schedule. For some patients
+on 100 mg ILUMYA™, results were seen as early as
+8 weeks. Furthermore, an average of 47.1% of all
+patients receiving ILUMYATM achieved an ACR50
+response, with some results seen as early as 12 weeks,
+compared to 24.1% of patients on placebo. Given the
+encouraging Phase-2 study interim results, Sun Pharma
+is exploring a possible Phase-3 trial for PsA. ILUMYATM
+is already approved in the US for the treatment of
+adults with moderate-to-severe plaque psoriasis, who
+are candidates for systemic therapy or phototherapy,
+and are being investigated for PSA, which affects up to
+42% of people with plaque psoriasis.
+The Phase-2 study interim results also showed
+that across all patients receiving ILUMYA™, 75.3%
+experienced a 20% improvement in symptoms of PsA
+(ACR20 response) at week 24, compared to 50.6%
+of patients on placebo. The findings were similar in
+• In June 2019, Sun Pharma announced interim results
+from a Phase-2 study of interleukin-23 (IL-23) inhibitor
+ILUMYAT (Tildrakizumab) in patients with active
+psoriatic arthritis (PSA). The interim analysis revealed
+that over 71% of patients treated with ILUMYA™
+experienced a 20% improvement in joint and skin
+symptoms (ACR20 response), meeting the primary
+endpoint of the study. The interim results showed that
+ILUMYATM was well-tolerated with a low rate of serious
+treatment-emergent adverse events.
+Management Discussion and Analysis
+FY20 operating highlights
+Margin
+223%
+8.3
+27.0
+%
+Net Profit
+On account of increased total revenue from operations
+by 22%, along with cost containment
+closed. Elective surgeries have been deferred. This will
+have a near-term impact on marketing and selling of
+pharmaceutical products and prescription generation
+for acute care products.
+-7%
+39%
+• Sun Pharma will continue to focus on its objective
+of growing each business faster than the markets in
+which it operates. It is focused on profitable growth,
+sustainable cash flows and controlling costs, objectives
+that have become more critical during these times
+of uncertainty. The Company will continue to invest
+in the development of complex generics and for the
+enhancement of its global specialty pipeline.
+FY17
+Launched specialty products, llumya, Yonsa and Xelpros in the US
+Received USFDA approval for Cequa
+• Launched Odomzo in the US
+.
+FY16
+•
+•
+FY15
+FY13
+•
+FY10
+FY98
+Obtained USFDA approval for llumya
+Filed llumya in the US and Europe
+Acquired Ocular Technologies-gaining access to Cequa-a product for treating dry eyes
+Launched BromSite in the US ophthalmology segment
+597
+• Lead times for transportation of raw materials and
+finished goods increased due to the lockdown, but are
+expected to gradually normalise once the lockdowns
+across economies are relaxed.
+FY15⚫
+Chart 7 ANDAs filed and approved
+(Nos.)
+(In Bn)
+Chart 6 US sales
+FY18
+• The US generics market remained highly competitive
+and continues to witness year-on-year price erosion,
+driven by increased bargaining by customers and
+speedier generics approvals from the USFDA, thereby
+intensifying competition.
+• Revenue from the US declined by 1% to
+*105,425 Million.
+FY20 highlights
+Acquired DUSA to enter the branded specialty dermatology market
+In-licensed llumya (Tildrakizumab)-strengthened specialty dermatology portfolio by gaining access to global rights,
+including the US
+Strengthened specialty ophthalmic portfolio with the acquisition of InSite Vision
+Acquired Odomzo, a branded oncology product from Novartis
+• The specialty branded business in the US witnessed
+a boost in revenues with llumya, Levulan Kerastick,
+Cequa and Odomzo being principal contributors.
+FY20 witnessed the first full-year commercial sales of
+Ilumya, while Cequa, launched in October 2019, had
+partial contribution.
+FY19
+Acquired Taro Pharma to penetrate the US dermatology market
+Entered the US market through Caraco acquisition
+Annual Report 2019-20
+Business Segment Review
+US BUSINESS
+•
+33%
+Revenue share
+for FY20
+*105 Bn
+581
+Cumulative ANDAS
+filed as on
+March 31, 2020
+60
+Cumulative
+NDAs filed as on
+March 31, 2020
+483
+Cumulative ANDAS
+approved as on
+March 31, 2020
+55
+Cumulative NDAs
+approved as on
+March 31, 2020
+Revenue in FY20
+ANDAs pending
+USFDA approval as
+on March 31, 2020
+98
+• Launched Cequa in the US
+FY20
+Year
+The Transformation Journey
+Launched Absorica LD Capsule in the US
+Table 8 US - Key Milestones
+Among the Indian pharmaceutical companies operating
+in the US, Sun Pharma enjoys a unique positioning,
+with capabilities for on-shore and off-shore integrated
+manufacturing for the US. The Company's manufacturing
+facilities have the capabilities to manufacture various
+dosage forms, including liquids, creams, ointments,
+gels, sprays, injectables, tablets, capsules and
+drug-device combinations.
+5
+<26
+NDAs pending
+USFDA approval as
+on March 31, 2020
+Sun Pharma has been supplying generics to the US for
+over two decades. Its growth over this period has been
+driven by a mix of organic and inorganic initiatives. Today,
+it is the 9th largest generics pharmaceutical company
+in the US, with footprints spanning generics, specialty,
+branded and OTC segments. It offers a comprehensive
+portfolio across therapies tailored to the US market,
+which accounts for 33% of the Company's revenues.
+Events
+Sun Pharma's key focus areas comprise Central Nervous
+System (CNS), dermatology, cardiology, oncology
+and ophthalmic, among others. It is ranked 2nd by
+prescriptions in the US dermatology market.
+2
+• Continue to invest in enhancing the global
+specialty pipeline
+People - the core of our strength
+Future focus
+With a global team of over 36,000+ people, the Company
+strives to provide its employees a work environment that
+is congenial and encourages a balanced, healthy and safe
+life. It offers various growth opportunities to its people,
+rewarding and recognising merit. The Company runs
+multiple training programmes for skill development.
+It promotes inclusive growth and knowledge-sharing to
+make its people future-ready.
+• Develop complex generics for the regulated markets
+31 >>>
+Production facilities
+9
+• Strengthen the product pipeline for India and
+emerging markets
+• Develop APIs of strategic importance
+Statutory Reports
+1
+1
+14
+2
+Management Discussion and Analysis
+Way forward
+• Promote inclusive growth and diversity
+• Ensure efficient risk management protocols for
+employee safety
+Total
+Quality at the core
+• Focus on improving productivity
+• Leverage digital tools for facilitating WFH for employees
+1
+Hungary
+23.0
+Israel
+1
+1
+The Company's research centres, manufacturing units,
+testing labs and distribution facilities are dedicated to
+maintaining highest quality standards. Sun Pharma has
+incorporated a robust quality management system and
+remains committed to operational excellence. Its global
+Quality Management Team ensures that every facility
+and product complies with global regulatory standards
+on efficacy and safety. It has in place stringent measures
+to ascertain conformity to regulatory requirements. Sun
+Pharma has cGMP certifications from global regulatory
+authorities like USFDA, European Medicines Agency
+(EMA), WHO and Therapeutic Goods Administration
+(TGA), among others.
+1
+1
+1
+1
+1
+1
+1
+1
+US
+29
+FY17⚫
+23.1
+FY18⚫
+22.5
+FY19⚫
+19.8
+FY20⚫
+19.7
+Countries
+Table 11 API manufacturing facilities
+India
+Australia
+FY16⚫
+Supported by well-trained quality control processes, Sun
+Pharma's teams are guided by a Corporate Quality Unit
+that supervises the implementation of latest GMP updates
+and guidelines.
+The Transformation Journey
+Way forward
+Annual Report 2019-20
+COVID-19 Risk Response
+The COVID-19 pandemic has resulted in a new world order.
+Countries imposed lockdowns on economic activities
+beyond essential services, restrictions came up on
+travel and physical contact alongside business operation
+suspension in most industries. The pharmaceutical sector,
+being a supplier of essential items, has been relatively less
+impacted compared to other industries.
+Sun Pharma promptly evolved a COVID-19 Risk
+Management Plan and formed multiple COVID-19 Risk
+Response Teams under the guidance of senior management
+to tackle challenges stemming from the pandemic.
+Following are some priorities for Sun Pharma to ensure
+business continuity:
+1.
+2.
+3.
+4.
+5.
+Employee protection - Keep workplace COVID-19
+free, working remotely wherever feasible
+Doctor and patient engagement - Focus on
+digital engagement with doctors, patients,
+healthcare providers
+Supply chain protection - Keep plants operational
+with safety protocols, maintain adequate stock
+levels, ensure timely deliveries, enhance captive
+consumption, and have close vendor connect to
+ensure supply chain continuity
+Support mechanisms and infrastructure
+-
+Enable
+work-from-home and collaboration tools, strengthen
+security related controls and enable access for
+remotely operating vendors
+-
+Financial health Focus on collections and effective
+debtor management to maintain adequate liquidity,
+while simultaneously continuing to focus on
+cost optimisation
+Despite our proactive COVID-19 risk response initiatives,
+we estimate sluggish sales in the near-term. The impact of
+the COVID-19 pandemic is difficult to quantify as of now,
+but the Company will try to ensure that it emerges stronger
+across its various businesses.
+Internal Control
+3
+Sun Pharma believes that internal control is a prerequisite
+for governance and that business plans should be exercised
+within a framework of checks and balances. The Company
+has a well-established internal control framework,
+which is designed to continuously assess the adequacy,
+effectiveness and efficiency of financial and operational
+controls. The management is committed to ensuring an
+effective internal control environment, commensurate with
+the size and complexity of the business, which provides an
+assurance on compliance with internal policies, applicable
+laws, regulations and protection of resources and assets.
+Global Internal Audit (GIA)
+An independent and empowered Global Internal Audit
+Function at the corporate level, with support from a reputed
+audit firm, carries out risk-focused audits across our Indian
+and overseas businesses, to ensure that business process
+controls are adequate and are functioning effectively.
+These reviews include financial, operational and compliance
+controls and risk mitigation plans. The Company's operating
+management closely monitors the internal control
+environment and ensures that the recommendations are
+effectively implemented. The Audit Committee of the
+Board monitors performance of the Internal Audit Function,
+reviews key findings and provides strategic guidance.
+32
+In December 2019, the USFDA inspected the Halol
+facility and issued Form 483 with eight observations.
+Later, the USFDA classified the inspection status as
+Official Action Indicated (OAI). The Company is in
+continuous communication with the USFDA to resolve
+outstanding issues from the December 2019 inspection,
+while it continues to manufacture and distribute approved
+products to the US, from this facility. The OAI status
+typically implies that the USFDA may put new approvals
+from the facility on hold till the facility comes back
+into compliance.
+The specialty initiative entails high upfront
+investments for long-term benefits, thus
+impacting short-term profitability
+Governments across the world try to control
+their healthcare budgets, which may lead
+to government-mandated price controls on
+• Ensure compliance with global cGMP standards
+• Enhance systems, processes, human capabilities to align
+with global regulatory standards
+Table 12 SWOT analysis
+Strengths
+Global presence - 4th largest global
+specialty generics company - 9th largest
+generics company in the US
+2nd largest by prescriptions in the
+US dermatology segment
+Largest pharma company in India by
+market share
+Enjoys No. 1 ranking with 11
+different classes of doctors in India
+Amongst the largest Indian
+pharmaceutical companies in
+emerging markets
+Largest Indian pharmaceutical
+company in Japan
+Strong R&D skillsets to develop
+technologically complex products in the
+generic and specialty space
+Ability to drive growth and profitability
+through a pragmatic mix of organic and
+inorganic initiatives
+A strong balance sheet imparts ability
+to undertake inorganic initiatives
+without any significant leverage
+Ability to supply high-quality products
+at affordable prices across the world
+Opportunities
+Global efforts to reduce healthcare
+costs augur well for companies like Sun
+Pharma who have the ability to supply
+high-quality pharmaceutical products at
+affordable prices
+Favourable macroeconomic parameters
+for India and emerging markets are likely
+to ensure reasonable volume growth for
+pharmaceutical products in these markets
+Contribution of specialty products is
+expected to increase in developed markets
+over medium to long-term. Sun Pharma has
+already commercialised many of its specialty
+products in developed markets, and hence
+will be able to get the benefits of this
+expanding opportunity
+Growing penetration of generics in Japan
+and opening of the China market, present
+a good long-term opportunity for Indian
+companies, including Sun Pharma
+Threats and Weaknesses
+.
+The outbreak of the COVID-19 pandemic
+across the world and subsequent
+disruption in economic activities is likely
+to impact GDP across countries and may
+indirectly also impact pharmaceutical
+consumption
+Challenging US generics pricing environment
+driven by customer consolidation and higher
+competitive intensity, on account of faster
+pace of generic drug approvals by the USFDA
+Significant volatility in the forex market,
+especially for emerging market currencies,
+may adversely impact reported growth of
+these markets, even though they may be
+recording growth in local currency terms
+pharmaceutical products
+14
+ACTIVE PHARMACEUTICAL INGREDIENTS (API) BUSINESS
+Total
+Sun Pharma's Rest of World (ROW) presence includes
+key markets in Western Europe, Canada, Japan, Australia
+and New Zealand (A&Z), where ageing population and
+increasing incidence of chronic ailments are likely to drive
+pharmaceutical consumption. However, government
+efforts to tighten healthcare budget in these markets, may
+act as a counter-balancing force. The portfolio includes
+differentiated offerings for hospitals, injectables and
+generics for retail markets and long-listed products in the
+Japanese market.
+FY20 highlights
+• Revenue from this segment increased by 31% to
+45,210 Million
+• Growth was partially driven by the full year
+consolidation of the Pola Pharma acquisition in Japan
+Future focus
+• Launch differentiated generic products
+• Commercialise llumya in Japan
+• Ramp-up llumya prescriptions in Australia
+29 >>
+Statutory Reports
+CONSUMER HEALTHCARE BUSINESS
+Revenue share
+for FY20
+20
+4
+Countries where Sun Pharma
+is ranked amongst top 10
+players
+Management Discussion and Analysis
+20+
+Presence in
+international
+markets
+6%
+Revenue share
+for FY20
+431
+DMF/CEP
+filings till date
+Consumer brands
+14%
+• Launch complex products
+profitable portfolio
+• Maintain leadership in a fiercely competitive market
+• Innovate continuously to ensure high brand equity
+• Evaluate in-licensing opportunities for latest-generation
+patented products
+GIA's functioning is governed by the Audit Charter, duly
+approved by the Audit Committee of the Board, which
+stipulates matters contributing to the proper and effective
+conduct of the audit. The audit processes are fully
+automated on a 'SunScience' tool, which integrates Internal
+Audits, Automated follow-ups for closure of observations,
+Internal Financial Controls (IFC) and Enterprise Risk
+Management (ERM) modules.
+• Expand geographical and doctor reach
+EMERGING MARKETS
+REST OF THE WORLD: WESTERN EUROPE, CANADA,
+JAPAN, AUSTRALIA, NEW ZEALAND AND OTHER MARKETS
+45 Bn
+Revenue in FY20
+*55 Bn
+Revenue in FY20
+17%
+Revenue share
+for FY20
+80+
+Market presence
+-2,300
+Sales
+representatives
+Markets with local
+manufacturing footprint
+Sun Pharma sells its products in multiple emerging markets
+with Romania, Russia, South Africa and Brazil being
+the larger contributors to the business. It is among the
+largest Indian companies in emerging markets, and offers
+a wide spectrum of market-specific branded products.
+The Company has local manufacturing facilities in seven
+countries, which affords more flexibility in servicing
+local markets.
+FY20 highlights
+• Revenues from emerging markets grew by 3% to
+*55,044 Million in FY20
+• Excluding the impact of lower tender business
+in South Africa, overall sales have grown by low
+double-digits for the year
+Key focus areas
+• Gain critical foothold in key markets through organic
+and inorganic initiatives
+• Enhance product basket to offer a broad and
+19 Bn
+Production facilities
+Revenue in FY20
+In India, Sun Pharma's key consumer healthcare brands
+- Volini and Revital H - are ranked 26th and 83rd,
+respectively in the Indian pharmaceutical market. The
+distribution network spans 1,000+ cities and towns,
+supported by approximately 400,000 retail outlets. New
+launches in India in FY20 include:
+R&D represents the critical catalyst of the business, as it
+enables Sun Pharma to develop and market differentiated
+generics and specialty products globally. The Company's
+R&D capabilities are supported by best-in-class
+technologies, helping it deliver affordable products globally.
+The Company is investing proactively to build a global
+pipeline for complex generics and specialty products.
+It has R&D capabilities and intellectual property experts to
+support development of products across dosage forms like
+injectables, orals, liquids, ointments, gels and sprays.
+Considering the highly competitive nature of the US
+generics market, the Company continues to be pragmatic in
+identifying future R&D projects. Investments to develop the
+long-term specialty pipeline are expected to continue and
+grow in scale and scope, in the long-term. The Company is
+also investing in developing specific products for emerging
+markets and other developed markets.
+Sun Pharma has also commenced research on developing
+an early stage innovation pipeline for its specialty business.
+Addition of new research candidates is imperative to ensure
+sustainability of the specialty pipeline in the long-term.
+Chart 10 R&D investments
+Global Manufacturing Capabilities
+Sun Pharma has 43 world-class manufacturing facilities
+across six continents, enabling the Company to
+manufacture high-quality and low-cost products to serve
+patients globally. It is among the few companies to set
+up integrated manufacturing capabilities to produce
+oncology, hormones, peptides, controlled substances,
+and steroidal drugs. These facilities are certified by
+global regulatory agencies like the USFDA, the European
+Medicines Evaluation Agency (EMEA), the UK Medicines
+and Healthcare Products Regulatory Agency (MHRA),
+Australia's Therapeutic Goods Administration (TGA), South
+Africa's Medicines Control Council (MCC) and Germany's
+Federal Institute for Drugs and Medical Devices (BfArM).
+The Company's manufacturing facilities are also certified
+by the Brazilian Health Regulatory Agency (ANVISA), the
+World Health Organisation (WHO), South Korea's Ministry
+of Food and Drug Safety and Japan's Pharmaceuticals and
+Medical Devices Agency.
+The Company has 29 finished dosage manufacturing
+facilities, while its 14 API facilities provide captive support.
+Table 10 Finished dosage manufacturing facilities
+Countries
+India
+US
+Cumulative R&D spend
+till date
+Japan
+Canada
+South Africa
+Malaysia
+Romania
+R&D investments (In Bn)
+R&D investments (% of sales)
+Egypt
+Nigeria
+Russia
+8.3%
+7.6%
+8.6%
+6.9%
+6.1%
+Hungary
+Israel
+Bangladesh
+*170+ Bn
+R&D spend as %
+of FY20 sales
+6.1%
+• Volini Maxx Spray - 2% Diclofenac spray - India's
+strongest pain relief spray
+• Volini Maxx Gel - 2% Diclofenac gel
+⚫ Volini Joint Xpert Gel - India's only gel that promises
+pain relief for 12 hours
+Future focus
+• Maintain market leadership through brand building,
+brand extensions and product innovation
+• Expand presence in high-growth markets
+• Increase retail and online presence
+• Use digital communication tools to improve
+consumer engagement
+323
+DMF/CEP approvals
+till date
+14
+Manufacturing
+units
+The Company's API business provides cost competitiveness
+and supply reliability, reducing dependence on third-party
+suppliers. Sun Pharma's API portfolio consists of over
+300 products across therapeutic segments. Besides using
+APIs for captive consumption, the Company supplies APIs
+to external customers also.
+FY20 highlights
+• Revenue from the API business increased by 11% to
+*19,159 Million
+• Key growth drivers include new contracts and
+better realisations
+Future focus
+• Commercialise strategic APIs for captive consumption
+• Seek new customers to grow the API business
+• Ensure consistent supplies and service standards
+30
+The Transformation Journey
+Annual Report 2019-20
+Research and Development
+Sun Pharma features amongst the top 10 consumer
+healthcare companies in India. Internationally,
+the Company sells its products in over 20 markets,
+with a focus on Romania, Russia, South Africa, Nigeria,
+Myanmar, Ukraine, Poland, Thailand, Belarus, Kazakhstan,
+Morocco, UAE and Oman. It enjoys prominent brand
+equity in three countries besides India and ranks among
+the top 10 consumer healthcare companies in Romania,
+Nigeria and Myanmar.
+Bibliography
+During the year under review, there was no change in the
+paid-up share capital of the Company.
+2 Pharmaphorum
+DIRECTORS AND KEY MANAGERIAL
+PERSONNEL
+During the year, Mr. Sudhir V. Valia had stepped down
+from the position of Whole-time Director of the Company
+w.e.f. May 29, 2019. However, he continues to be a Non-
+Executive and Non-Independent Director of the Company.
+Mr. Israel Makov, Chairman and Mr. Sudhir V. Valia, Director
+of the Company retire by rotation at the ensuing 28th
+Annual General Meeting of the Company and being eligible
+offer themselves for reappointment.
+Mr. Kalyanasundaram Subramanian was re-appointed as
+Whole-time Director for a period of two years with effect
+from February 14, 2019, without any remuneration from
+the Company, since he was receiving remuneration from
+wholly owned subsidiary company as the CEO & Whole-
+time Director of the subsidiary. During the year, due to
+change in his role and responsibilities, the Board, on the
+recommendation of the Nomination and Remuneration
+Committee, had approved the payment of remuneration to
+Mr. Kalyanasundaram Subramanian with effect from July
+35 >>>
+Statutory Reports
+Board's Report
+04, 2019 till the remaining term of his appointment upto
+February 13, 2021. The maximum remuneration which can
+be paid to Mr. Kalyandasundaram Subramanian was also
+approved by the members at 27th Annual General Meeting
+of the Company held on August 28, 2019. He no longer
+receives remuneration from the wholly owned subsidiary
+company with effect from July 04, 2019.
+Mr. Dilip S. Shanghvi was re-appointed as the Managing
+Director at the 25th Annual General Meeting of the
+Company held on September 26, 2017 for a period of
+5(five) years effective from April 1, 2018 upto March 31,
+2023. However, due to inadequacy of profits, the approval
+for remuneration to be paid to Mr. Dilip S. Shanghvi was
+sought from the members for a period of 3 years with
+effect from April 1, 2018 to March 31, 2021, including the
+minimum remuneration to be paid to him in event of loss
+or inadequacy of profits in any financial year during the
+aforesaid period of 3 years.
+On the recommendation by the Nomination and
+Remuneration Committee, the Board of Directors at its
+meeting held on May 27, 2020, have considered, approved
+and recommended to the members, the maximum
+remuneration to be paid to Mr. Dilip S. Shanghvi for further
+period of two years i.e. for the remaining term of his present
+appointment, from April 01, 2021 till March 31, 2023.
+Appropriate resolutions for the re-appointment and
+remuneration of the Directors are being placed for your
+approval at the ensuing 28th Annual General Meeting.
+Your Directors recommend the same for approval by the
+members at the ensuing 28th Annual General Meeting
+of the Company.
+Details pertaining to entities that became subsidiaries/
+joint ventures/associates and those that ceased to be the
+subsidiaries/joint ventures/associates of the Company
+during the year under review are provided in Note: 38 of
+the notes to the Consolidated Financial Statements, forming
+part of the Annual Report.
+DECLARATION BY INDEPENDENT DIRECTORS
+The Company has received declarations from all the
+Independent Directors of the Company confirming that
+they meet with the criteria of independence as prescribed
+under Section 149(6) of the Act and under Securities and
+Exchange Board of India (Listing Obligations and Disclosure
+Requirements) Regulations, 2015 ("Listing Regulations").
+REMUNERATION POLICY FOR DIRECTORS,
+KEY MANAGERIAL PERSONNEL AND OTHER
+EMPLOYEES AND CRITERIA FOR APPOINTMENT
+OF DIRECTORS
+For the purpose of selection of any Director, the
+Nomination and Remuneration Committee identifies
+persons of integrity who possess relevant expertise,
+experience and leadership qualities required for the
+position. The Committee also ensures that the incumbent
+fulfils such criteria with regard to qualifications, positive
+attributes, independence, age and other criteria as laid
+down under the Act, Listing Regulations or other applicable
+laws. The Board has, on the recommendation of the
+Nomination and Remuneration Committee framed a Policy
+on remuneration of Directors, Key Managerial Personnel
+and other Employees.
+The salient features of the Remuneration Policy of the
+Company are as under:
+A.
+B.
+Guiding Principles for remuneration: The Company
+shall remunerate all its personnel reasonably and
+sufficiently as per industry benchmarks and standards.
+The remuneration shall be commensurate to retain and
+motivate the human resources of the Company. The
+compensation package will, inter alia, take into account
+the experience of the personnel, the knowledge & skill
+required including complexity of his job, work duration
+and risks associated with the work, and attitude of the
+employee like positive outlook, team work, loyalty etc.
+Components of Remuneration: The following will be
+the various remuneration components which may be
+paid to the personnel of the Company based on the
+designation and class of the personnel.
+a)
+b)
+c)
+In the opinion of the Board, the Independent Directors
+of the Company fulfil the conditions specified under
+the Act and Listing Regulations and are independent of
+the management.
+The highlights of performance of subsidiaries, joint
+ventures and associates and their contribution to the
+overall performance of the Company during the financial
+year under review is given under Annexure 'A' to the
+Consolidated Financial Statements forming part of the
+Annual Report.
+SUBSIDIARIES/JOINT VENTURES/ASSOCIATES
+The statement containing the salient features of the
+Financial Statements of the Company's subsidiaries/joint
+ventures/ associates is given in Form AOC - 1, provided in
+Notes to the Consolidated Financial Statements, forming
+part of the Annual Report.
+The extract of Annual Return as required under sub-section
+(3) of Section 92 of the Companies Act, 2013 ('the Act') in
+form MGT-9 is provided as 'Annexure - B' to this Report
+and is also made available on the website of the Company at
+https://www.sunpharma.com/investors/annualreports.
+203.9
+43.0
+333,301.9
+-Legal reserve
+-General reserve
+Closing balance in Retained Earnings
+DIVIDEND
+During the year under review, your Directors at their
+meeting held on February 06, 2020 had declared an
+interim dividend of $3.00 (Rupees Three only) per equity
+share of 1/- each for the year ended March 31, 2020. The
+interim dividend was paid on February 24, 2020 to those
+shareholders who held shares as on February 18, 2020,
+being the record date for payment.
+In addition to above, your Directors have recommended
+a final dividend of 1/-(Rupee One only) per equity share
+of 1/- each [previous year *2.75/- per equity share of
+*1/- each] for the year ended March 31, 2020, subject to
+the approval of the equity shareholders at the ensuing
+28th Annual General Meeting of the Company. Pursuant
+to the recent amendments introduced by the Finance Act,
+2020, the said final dividend will be liable for deduction of
+income tax at source.
+Therefore, the total dividend payout for the FY20 is ₹4/-
+(Rupees Four only) per equity share of 1/- each.
+The dividend payout is in accordance with the Company's
+Dividend Distribution Policy. The Dividend Distribution
+Policy of the Company is provided as 'Annexure - A' to this
+Report. The policy is also available on the website of the
+K34
+The Transformation Journey
+Annual Report 2019-20
+Company and can be accessed through the web link:
+http://www.sunpharma.com/policies.
+BUY-BACK OF SHARES
+During the year under review, the Board of Directors
+of the Company at its meeting held on March 17, 2020,
+approved buy-back of Company's equity shares of face
+value of *1/- each ("Equity Shares") from the Open Market
+through stock exchange mechanism as prescribed under
+the Securities and Exchange Board of India (Buy-Back of
+Securities) Regulations, 2018, at a maximum price of *425/-
+(Rupees Four Hundred Twenty Five Only), per Equity Share
+payable in cash, for an aggregate maximum amount of up to
+*1700,00,00,000/- (Rupees One Thousand Seven Hundred
+Crores Only) ("Maximum Buy-back Size").
+The Buy-back period opened on and from March 26, 2020
+and last date for the completion of the Buy-back shall
+be earlier of: a) Friday, September 25, 2020 i.e., within
+6 months from the date of the opening of Buy-back; or b)
+When the Company completes the Buy-back by deploying
+the amount equivalent to the Maximum Buy-back Size; or
+c) At such earlier date as may be determined by the Board
+or the persons authorised by the Board, subject to the
+Company having deployed an amount equivalent to the
+Minimum Buy-back Size i.e. *850,00,00,000/- (Rupees Eight
+Hundred Fifty Crores Only) (even if the Maximum Buy-back
+Size has not been reached).
+No shares have been bought back by the Company, till the
+date of this report i.e. May 27, 2020, mainly due to the
+market price per Equity Share remaining higher, on most
+of the days, than the maximum price per Equity Share
+approved for the Buy-back.
+CHANGES IN CAPITAL STRUCTURE
+SCHEME OF ARRANGEMENT
+During the year, the Hon'ble National Company Law
+Tribunal, Ahmedabad Bench ("NCLT"), vide its Order dated
+December 19, 2019, on interpretation ground that an
+outbound Demerger is not envisaged under Section 234 of
+Companies Act, 2013, did not allow the Company's petition
+for the proposed Composite Scheme of Arrangement
+amongst Sun Pharmaceutical Industries Limited and Sun
+Pharma (Netherlands) B.V. ("Transferee Company-1")
+and Sun Pharmaceutical Holdings USA Inc. ("Transferee
+Company-2") and their respective members and creditors
+("Composite Scheme of Arrangement") for transfer of
+the Specified Investment Undertaking-1 (as defined in
+the Composite Scheme of Arrangement) and Specified
+Investment Undertaking-2 (as defined in Composite
+Scheme of Arrangement) of the Company into Transferee
+Company-1 and Transferee Company-2 respectively.
+The Composite Scheme of Arrangement being an internal
+restructuring exercise, the above referred Order of Hon'ble
+NCLT does not impact the consolidated financial statements
+of the Company.
+The aforesaid Composite Scheme of Arrangement was
+approved by the Board of Directors at its meeting held on
+May 25, 2018 and was approved by the shareholders of the
+Company and unsecured creditors at their respective NCLT
+convened meetings held on June 04, 2019.
+EXTRACT OF ANNUAL RETURN
+d)
+353,200.5
+Fixed compensation: The fixed salaries of the
+Company's personnel shall be competitive
+and based on the individual personnel's
+responsibilities and performance.
+Share based payments: The Board may, on
+the recommendation of the Nomination and
+Remuneration Committee, issue to certain class
+of personnel a share and share price related
+incentive program.
+37 >>
+The Nomination and Remuneration Committee reviewed
+the performance of the individual Directors on the basis
+of the criteria such as qualification, experience, knowledge
+and competency, fulfilment of functions, availability
+and attendance, initiative, integrity, contribution and
+commitment etc., and the Independent Directors were
+additionally evaluated on the basis of independence,
+independent views and judgement etc. Further the
+evaluation of Chairman of the Board, in addition to the
+above criteria for individual Directors, also included
+evaluation based on effectiveness of leadership and ability
+to steer the meetings, impartiality, etc.
+The performance of the Board was evaluated by the Board
+after seeking inputs from all the Directors on the basis of
+various criteria such as structure and diversity of the Board,
+competency of Directors, experience of Director, strategy
+and performance evaluation, secretarial support, evaluation
+of risk, evaluation of performance of the management
+and feedback, independence of the management from
+the Board etc. The performance of the Committees was
+evaluated by the Board after seeking inputs from the
+Committee members on the basis of criteria such as
+mandate and composition, effectiveness of the committee,
+structure of the committee and meetings, independence
+of the committee from the Board and contribution to
+decisions of the Board.
+In a separate meeting of Independent Directors,
+performance of Non Independent Directors and
+performance of the Board as a whole was evaluated.
+Further, they also evaluated the performance of the
+Chairman of the Company, taking into account the views of
+the Executive Directors and Non-executive Directors.
+The Chairman of the Company interacted with each
+Director individually, for evaluation of performance of the
+individual Directors. The evaluation for the performance
+of the Board as a whole and of the Committees were
+conducted by way of questionnaires.
+During the year, the evaluation of the annual performance
+of individual Directors including the Chairman of
+the Company and Independent Directors, Board and
+Committees of the Board was carried out under the
+provisions of the Act, relevant Rules, and the Corporate
+Governance requirements as prescribed under Regulation
+17 of Listing Regulations and based on the circular
+issued by SEBI dated January 5, 2017 with respect to
+Guidance Note on Board Evaluation. The Nomination and
+Remuneration Committee had approved the criteria for
+the performance evaluation of the Board, its Committees
+and individual Directors as per the SEBI Guidance Note on
+Board Evaluation.
+EVALUATION OF PERFORMANCE OF THE
+BOARD, ITS COMMITTEES AND INDIVIDUAL
+DIRECTORS
+The Board of Directors of the Company met 6 (Six) times
+during the year under review on May 28, 2019; August 13,
+2019; August 28, 2019; November 07, 2019; February 06,
+2020 and March 17, 2020. The particulars of attendance
+of the Directors at the said meetings are provided in detail
+in the Corporate Governance Report, which forms a part
+of this Report. The intervening gap between the meetings
+was within the period prescribed under the Act and
+Listing Regulations.
+In compliance with the requirements of Regulation 25(7)
+of the Listing Regulations, the Company has put in place a
+Familiarisation Programme for the Independent Directors
+to familiarise them with the Company, their roles, rights,
+responsibilities in the Company, nature of the industry
+in which the Company operates, business model etc.
+The details of the Familiarisation Programme conducted
+are available on the website of the Company:
+www.sunpharma.com and can be accessed through the
+web link: http://www.sunpharma.com/policies.
+NUMBER OF MEETINGS OF THE BOARD
+FAMILIARISATION PROGRAMME FOR THE
+INDEPENDENT DIRECTORS
+http://www.sunpharma.com/policies.
+Statutory Reports
+The complete Policy as approved by the Board is
+available on the website of the Company and can be
+accessed through the web link:
+Human Resources Head
+To be determined by
+Board of Directors on the
+recommendation of the
+Nomination and Remuneration
+Committee within the limits
+approved by the shareholders
+Board of Directors on
+recommendation of the
+Nomination and Remuneration
+Committee
+Other employees
+Key Managerial Personnel
+and Senior Management
+Designation / Class
+Director
+Entitlement: The authority to determine the
+entitlement to various components as aforesaid
+for each class and designation of personnel
+shall be as follows:
+commission if approved by the shareholders.
+The shareholders may authorise the Board
+to declare commission to be paid to any
+director of the Board.
+f) Commission: The directors may be paid
+C)
+Annual Report 2019-20
+Priorities for future
+Note: For the purpose of this Policy, the term 'Senior
+Management' shall have the same meaning as defined under
+the SEBI (Listing Obligation and Disclosure Requirements)
+Regulations, 2015
+Board's Report
+The Chairman and other members of the Board discussed
+upon the performance evaluation of every Director of
+the Company and concluded that they were satisfied
+with the overall performance of the Directors individually
+and that the Directors generally met their expectations
+of performance.
+The summary of the feedback from the members were
+thereafter discussed in detail by the members. The
+respective Director, who was being evaluated, did not
+participate in the discussion on his/her performance
+evaluation and had exited the meeting for the said
+discussion. During the discussion in respect of performance
+of Mr. Dilip Shanghvi and Mr. Sudhir Valia, both Mr. Dilip
+Shanghvi and Mr. Sudhir Valia had exited the meeting.
+Non-monetary benefits: Senior management
+personnel of the Company may, on a case to
+case basis, be awarded customary non-monetary
+benefits such as discounted salary advance /
+credit facility, rent free accommodation, Company
+cars with or without chauffeur, share and share
+price related incentive, reimbursement of
+electricity and telephone bills etc.
+e) Gratuity/group insurance: Personnel may also
+be awarded to group insurance and other key
+man insurance protection. Further as required
+by the law necessary gratuity shall be paid
+to the personnel.
+<36
+The Transformation Journey
+38
+The Secretarial Audit Report for the year does not contain
+any qualification, reservation or adverse remark.
+D'
+-
+The Board had appointed KJB & Co. LLP, Practicing
+Company Secretaries, Mumbai to undertake the Secretarial
+Audit of the Company for the financial year ended
+March 31, 2020. The Secretarial Audit Report in the
+Form No. MR - 3 for the year is provided as 'Annexure
+to this Report.
+Secretarial Auditor
+The Auditor's Report for the financial year ended March 31,
+2020, has been issued with an unmodified opinion, by the
+Statutory Auditors.
+SRBC & Co LLP, Chartered Accountants, (Firm's Regn.
+No. 324982E/ E300003), were appointed as the Statutory
+Auditors of the Company for a period of 5 (five) years at the
+25th Annual General Meeting of the Company to hold office
+till the conclusion of the 30th Annual General Meeting
+of the Company.
+Statutory Auditors
+AUDITORS
+Your Company has complied with provisions relating to the
+constitution of Internal Complaints Committee under the
+Sexual Harassment of Women at Workplace (Prevention,
+Prohibition and Redressal) Act, 2013
+During the financial year ended March 31, 2020, one
+complaint pertaining to sexual harassment was received
+and the same was resolved by the Company. There are no
+complaints pending as at the end of the financial year.
+Your Company strongly believes in providing a safe and
+harassment free workplace for each and every individual
+working for the Company through various interventions
+and practices. It is the continuous endeavour of the
+Management of the Company to create and provide
+an environment to all its employees that is free from
+discrimination and harassment including sexual harassment.
+The Company has adopted a policy on prevention,
+prohibition and redressal of sexual harassment at workplace
+in line with the provisions of the Sexual Harassment
+of Women at Workplace (Prevention, Prohibition and
+Redressal) Act, 2013 and the Rules made thereunder. The
+Company has arranged various interactive awareness
+workshops in this regard for the employees at the
+manufacturing sites, R & D set ups & corporate office during
+the year under review. The Company has submitted the
+Annual Returns to the local authorities, as required under
+the above mentioned Act.
+HARASSMENT OF WOMEN AT WORKPLACE
+(PREVENTION, PROHIBITION AND REDRESSAL)
+ACT, 2013
+DISCLOSURE UNDER THE SEXUAL
+Information as per Section 197 (12) of the Act read
+with Rule 5(1) of the Companies (Appointment and
+Remuneration of Managerial Personnel) Rules, 2014 is
+provided in 'Annexure - C' to this Report. Further, the
+information pertaining to Rule 5(2) & 5(3) of the Companies
+(Appointment and Remuneration of Managerial Personnel)
+Rules, 2014, pertaining to the names and other particulars
+of employees is available for inspection at the Registered
+office of the Company during business hours and pursuant
+to the second proviso to Section 136(1) of the Act, the
+Report and the accounts are being sent to the members
+excluding this. Any shareholder interested in obtaining a
+copy of the same may write to the Company Secretary/
+Compliance Officer.
+Sun Pharma's skilled, talented and multicultural workforce
+is pivotal to all the initiatives that drive us to realise our
+future plans. We have 36000+ employees globally spread
+across multiple geographies in various sales offices, R&D
+centers, 43 manufacturing locations, regional offices and
+Corporate office. Human Resource agenda encourages
+high performance culture with focus on Employee health,
+safety & welfare, Employee engagement, development
+& Productivity. Your Directors would like to take this
+opportunity to express their appreciation for the passion,
+dedication and commitment of the employees of the
+Company and look forward to their continued contribution.
+HUMAN RESOURCES
+The Board also assessed the fulfillment of the
+independence criteria as specified in Listing Regulations,
+by the Independent Directors of the Company and their
+independence from the management.
+The Chairman additionally interacted with each Director
+individually, for evaluation of performance of all Individual
+Directors and Mr. Dilip Shanghvi, along with other Directors
+had evaluated the performance of Mr. Israel Makov as the
+Chairman and as an Individual Director. They were satisfied
+with the overall performance of the Directors individually
+and that the Directors generally met their expectations
+of performance.
+Variable compensation: The personnel of the
+Company may be paid remuneration by way of
+variable salaries based on their performance
+evaluation. Such variable salaries should be based
+on the performance of the individual against his
+short and long term performance objectives and
+the performance of the Company.
+123,846.1
+140,052.7
+23.0
+50,245.8
+12,143.8
+2,606.4
+12,143.8
+32,530.0
+7,194.5
+50,095.9
+38,102.0
+-Current Tax
+-Deferred Tax Charge / (Credit)
+Profit after tax
+290,659.1
+3,864.6
+13,201.4
+8,039.6
+(3,446.0)
+(987.0)
+(4,973.4)
+(2,030.8)
+32,111.4
+8,166.0
+41,867.9
+32,093.2
+Profit after Tax but before Share in profit / (loss) of associates
+and joint venture
+15.5
+328,375.0
+52,702.3
+103,032.1
+19,338.3
+125,319.3
+32,530.0
+3 India Brand Equity Foundation
+4 McKinsey & Company
+5 MarketWatch
+6 Nicholas Hall 2019
+7 AIOCD-AWACS report, March 2020
+8 SMSRC Report, February 2020
+Disclaimer
+Statements in this 'Management Discussion and Analysis'
+describing the Company's objectives, projections,
+estimates, expectations, plans or industry conditions
+or events are 'forward-looking statements' within the
+meaning of applicable securities laws and regulations.
+Actual results, performance or achievements could differ
+materially from those expressed or implied. Important
+factors that could make a difference to the Company's
+operations include global and Indian demand-supply
+conditions, finished goods prices, feedstock availability
+and prices, competitors' pricing in the Company's principal
+markets, changes in government regulations, tax regimes,
+economic conditions within India and the countries within
+which the Company conducts business and other factors,
+such as litigation and labour unrest or other difficulties.
+The Company assumes no responsibility to publicly
+update, amend, modify or revise any forward-looking
+statements, based on any subsequent development,
+new information or future events or otherwise except as
+required by applicable law. Unless the context otherwise
+requires, references in this document to 'we', 'us' or 'our'
+refers to Sun Pharmaceutical Industries Limited and
+consolidated subsidiaries.
+33 »
+Statutory Reports
+Board's Report
+Board's Report
+Your Directors take pleasure in presenting the Twenty-Eighth Annual Report and Company's Audited Financial Statements
+for the financial year ended March 31, 2020.
+FINANCIAL RESULTS
+(in Million)
+Standalone
+Consolidated
+Year ended
+March 31, 2020
+Year ended
+March 31, 2019
+Year ended
+March 31, 2020
+Year ended
+March 31, 2019
+Revenue from operations
+Profit before exceptional item and tax
+Exceptional Item
+Profit before tax but after exceptional item
+Tax expense:
+Share of profit/(loss) of associates and joint venture [Net]
+Profit for the year before non-controlling interests
+Non-controlling interests
+41,867.9
+32,093.2
+(148.3)
+319,777.0
+Additions:
+Amount available for appropriation
+31,925.1
+8,273.3
+37,377.3
+26,804.4
+Less:
+Dividend on Equity Shares
+13,789.6
+4,791.6
+13,789.6
+4,791.6
+Dividend Distribution Tax
+1,928.9
+5.6
+Buy-back of equity shares by overseas subsidiaries
+2,834.5
+831.6
+984.9
+2,013.1
+Adjustment on account of Ind AS 115
+6,493.0
+Transfer to/from various Reserves:
+-Debenture redemption Reserve
+(1,250.0)
+333,301.9
+1 IQVIA Institute
+120,370.0
+Opening balance in Retained Earnings
+(14.6)
+41,719.6
+32,078.6
+4,070.3
+5,424.4
+Profit for the year attributable to owners of the Company
+Total other Comprehensive Income
+37,649.3
+26,654.2
+(808.0)
+1,837.4
+21,208.3
+16,799.9
+Total Comprehensive Income for the year attributable to:
+31,303.4
+10,003.4
+62,927.9
+48,878.5
+-Owners of the Company
+31,303.4
+10,003.4
+56,068.4
+42,054.1
+-Non-Controlling Interest
+6,859.5
+6,824.4
+123,846.1
+Annual Report 2019-20
+7
+The Transformation Journey
+Accumulated Losses, if any
+90. Artes Biotechnology GmbH
+2(6)
+19.99
+Associate
+Not Applicable
+USA
+89. ALPS LLC
+2(87)(ii)
+57.56
+Subsidiary
+L27100TG1989 PLC010122
+India
+88. Zenotech Laboratories Limited
+2(87)(ii)
+Germany
+Not Applicable
+Associate
+45.00
+93. Generic Solar Power LLP
+2(6)
+19.99
+Associate
+Not Applicable
+USA
+57.56
+92. Dr. Py Institute LLC
+36.90
+Associate
+Not Applicable
+India
+91. Composite Power Generation LLP
+2(6)
+2(6)
+Subsidiary
+Not Applicable
+USA
+2(87)(ii)
+77.10
+Subsidiary
+Not Applicable
+USA
+83. Taro Pharmaceuticals U.S.A., Inc.
+84. The Taro Development Corporation
+85. Universal Enterprises Private
+Limited
+USA
+West Indies
+2(87)(ii)
+77.10
+Subsidiary
+Not Applicable
+Cayman Islands,
+2(87)(ii)
+British
+India
+Not Applicable
+100.00
+87. Zenotech Inc
+Ltda
+2(87)(ii)
+38.21
+Subsidiary
+Not Applicable
+Subsidiary
+Brazil
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+India
+2(87)(ii)
+86. Zenotech Farmaceutica Do Brasil
+Not Applicable
+Associate
+28.76
+2(6)
+40.61
+Associate
+Not Applicable
+India
+101. Trumpcard Advisors and Finvest
+LLP
+2(6)
+Associate
+Not Applicable
+USA
+100. Medinstill LLC
+2(6)
+19.99
+19.99
+Associate
+102. Vento Power Generation LLP
+Not Applicable
+17.78
+Associate
+Not Applicable
+Israel
+104. Tarsius Pharma Ltd.
+2(6)
+India
+39.41
+Not Applicable
+India
+103. Vintage Power Generation LLP
+2(6)
+40.55
+Associate
+Associate
+77.10
+Not Applicable
+99. Medinstill Development LLC
+96. HRE LLC
+2(6)
+19.99
+Associate
+Not Applicable
+USA
+USA
+95. HRE III LLC
+19.99
+Associate
+Not Applicable
+USA
+94. HRE II LLC
+2(6)
+2(6)
+USA
+Not Applicable
+19.99
+Skin Care LLC)
+2(6)
+19.99
+Associate
+Not Applicable
+USA
+Associate
+98. Intact Media LLC (Formerly Intact
+19.99
+Associate
+Not Applicable
+USA
+97. Intact Pharmaceuticals LLC
+2(6)
+2(6)
+Subsidiary
+Not Applicable
+2(87)(ii)
+66. Sun Pharmaceutical
+Applicable
+Section
+% of shares held
+Holding/
+Subsidiary
+/Associate
+No.
+CIN/GLN
+Australia
+of the Company
+Sr.
+Address
+Annual Report 2019-20
+The Transformation Journey
+<46
+2(87)(ii)
+Name of the Company
+72.50
+Not Applicable
+100.00
+100.00
+Subsidiary
+Not Applicable
+Peru
+68. Sun Pharmaceutical
+Industries (Europe) B.V.
+Subsidiary
+2(87)(ii)
+Subsidiary
+Not Applicable
+Netherlands
+67. Sun Pharmaceutical
+Industries (Australia) Pty Limited
+2(87)(ii)
+100.00
+The profits earned by the Company during any
+financial year shall be first utilised to set off the
+accumulated losses/ unabsorbed depreciation,
+Subsidiary
+Bangladesh
+Subsidiary
+Not Applicable
+Japan
+2(87)(ii)
+100.00
+Subsidiary
+100.00
+Not Applicable
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+UAE
+2(87)(ii)
+Mauritius
+Not Applicable
+2(87)(ii)
+Philippines
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+USA
+2(87)(ii)
+62. Sun Pharma Philippines, Inc.
+63. Sun Pharma Switzerland Ltd.
+64. Sun Pharmaceutical Industries, Inc.
+65. Sun Pharmaceutical (Bangladesh)
+Limited
+100.00
+Not Applicable
+Switzerland
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Subsidiary
+2(6)
+Industries S.A.C.
+India
+Subsidiary
+Not Applicable
+Israel
+2(87)(ii)
+100.00
+Subsidiary
+77.10
+Not Applicable
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+South Korea
+75. Sun Pharmaceuticals Korea Ltd.
+76. Sun Pharmaceuticals Morocco LLC
+77. Taro International Ltd.
+Morocco
+2(87)(ii)
+2(87)(ii)
+Israel
+77.10
+Subsidiary
+Not Applicable
+Netherlands
+Canada
+80. Taro Pharmaceuticals Europe B.V.
+81. Taro Pharmaceuticals Inc.
+82. Taro Pharmaceuticals North
+America, Inc.
+2(87)(ii)
+78. Taro Pharmaceutical Industries Ltd.
+79. Taro Pharmaceutical Laboratories
+Inc.
+77.10
+Not Applicable
+USA
+2(87)(ii)
+77.10
+Subsidiary
+Not Applicable
+Subsidiary
+69. Sun Pharmaceutical Medicare
+100.00
+Not Applicable
+Not Applicable
+USA
+71. Sun Pharmaceuticals Holdings USA,
+Inc.
+2(87)(ii)
+99.33
+Subsidiary
+Subsidiary
+Not Applicable
+70. Sun Pharmaceutical Peru S.A.C.
+Limited
+2(87)(ii)
+100.00
+Subsidiary
+U36900GJ2017PLC095132
+Peru
+Subsidiary
+100.00
+72. Sun Pharmaceuticals SA (Pty) Ltd.
+Germany
+74. Sun Pharmaceuticals Germany
+GmbH
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+2(87)(ii)
+France
+Africa
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+South
+73. Sun Pharmaceuticals France
+105. Intact Solutions LLC
+USA
+Not Applicable
+0.01
+294546
+12248
+282298
+0.03
+693050
+-0.02
+15248
+0.79
+7.71
+185031391
+0.00
+0.00
+0
+677802
+0
+0
+0
+0
+0.00
+0.00
+0.00
+0
+0.00
+0.00
+0
+0.00
+0
+0
+0.00
+0
+0
+0
+0.00
+0
+372261678
+0
+166138398
+0.00
+2820
+0
+2820
+-0.05
+0.83
+6430
+2293 19871145
+10.77
+9342 258465884
+9.31 258456542
+0.88 19868852
+9342 223335011
+2293 21071172
+223325669
+21068879
+b) Financial Institutions /
+Bank
+1.46
+0.00
+6.92 185031391
+0
+0.00
+0
+166138398
+0
+0
+0
+Foreign Portfolio Investor
+(Corporate)
+6430
+(i) Any Other (specify)
+g) Foreign Venture Capital
+f) Fils
+e) Insurance Companies
+d) Venture Capital Funds
+c) Central Government /
+State Government
+0.00
+h) Qualified Foreign Investors
+a) Mutual Funds
+0.00 372261678
+0 307018628
+139147990 8528636 147676626
+0.00
+0.00
+46000
+-0.10
+3.63
+6.15 139425693 7655503 147081196
+87192721
+3.73
+0.00
+0
+151840 89567502
+46000
+46000
+89415662
+c) Qualified Foreign Investors
+87048986 143735
+46000
+capital in excess of 1 lakh
+6.13
+holding nominal share
+0.00
+0.00
+0
+0
+0.00
+0
+-0.02
+0
+0.36
+1.57
+37714889
+0
+1.21 37714889
+28686116 288000 28974116
+<48
+15.52 307018628
+ii) Individual Shareholders
+holding nominal share
+i) Individual Shareholders
+4115726
+0.00
+0.00
+13836
+4908
+1380
+8928
+4114346
+0.17
+0.00
+0.15
+1380
+8928 23789
+3626731
+UTI and its schemes and
+Funds
+Foreign Bank
+-2.72
+12.80
+32717
+3628111
+capital upto 1 lakh
+0.02
+0 1212911
+52052 788375868
+b) Individuals
+ii) Overseas
+i) Indian
+a) Bodies Corporate
+2. Non-Institutions
+Sub-total (B)(1):-
+1212911
+788323816
+Alternate Investment Funds
+32.37
+0.03
+0.08
+1844091
+776661677
+1844091
+0
+776631506 30171
+0.05
+32.86
+-0.49
+1. Institutions
+B. Public Shareholding
+Promoter (A)=(A)(1)+(A)(2)
+0
+0
+d) Financial Institutions /
+Bank
+0.30
+42.41
+12000 1017657248
+0
+42.11 1017645248
+1010366094
+c) Bodies Corporate
+0.00
+0.00
+0
+0
+12000 1010378094
+0
+0.00
+0
+1276774
+0
+0.05 1276774
+54.38 1312122535
+12000 1304855381
+1304843381
+1276774
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+2) Foreign
+Sub-total (A) (1):-
+e) Any Other (Trusts)
+0.00
+0.00
+0
+1276774
+0.05
+0.00
+0 293200513
+% of Total
+Shares
+Total
+Demat Physical
+No. of shares held at the end of
+the year
+No. of shares held at the beginning of
+the year
+Category of shareholders
+Demat
+(i) Category-wise Share Holding
+Board's Report
+Statutory Reports
+47 >>
+2(6)
+19.99
+Associate
+IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL
+EQUITY AS ON MARCH 31, 2020)
+12.22
+Physical
+% of Total
+12.22 293200513
+0.00
+0
+0
+0
+b) Central Government /
+0 293200513
+%
+Change
+293200513
+a) Individual/ HUF
+1) Indian
+A. Promoters*
+Shares the year
+Total
+during
+State Government
+0.00
+12000 1312134535
+54.69
+0.00
+0
+0
+0
+0.00
+0
+0.00
+0
+e) Any Other
+0.00
+0.00
+0
+0
+0
+0
+0.00
+Sub-total (A)(2):-
+0
+Total shareholding of
+0.30
+54.69
+12000 1312134535
+54.38 1312122535
+12000 1304855381
+0
+1304843381
+0.00
+0
+0
+0
+0.00
+0
+0.00
+0.00
+0
+0
+0
+c) Bodies Corporate
+0.00
+0
+0
+0
+0
+Individuals
+0.00
+0
+0
+0
+a) Individuals (NRIs)
+0.30
+b) Other
+0
+0.00
+d) Financial Institutions /
+Bank
+0.00
+0.00
+0
+0
+0
+0.00
+0.00
+0
+0
+0
+OOOO
+0.00
+0
+0
+0
+100.00
+Subsidiary
+2(87)(ii)
+Egypt
+Sr.
+All the business activities contributing 10% or more of the total turnover of the Company:
+II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
+Annexure - B
+Annual Report 2019-20
+Vikhroli West, Mumbai 400 083
+Tel No: +91 22 49186270
+No. of main products/services
+C 101, 247 Park, L.B.S. Marg,
+Yes
+SPARC, Tandalja, Vadodara 390012, Gujarat
+Tel No: +91 0265 6615500
+Sun Pharmaceutical Industries Limited
+Company Limited by Shares
+L24230GJ1993PLC019050
+March 01, 1993
+vii) Name, Address and Contact details of Registrar and
+Transfer Agent, if any
+vi) Whether listed company
+Link Intime India Private Limited
+v) Address of the Registered Office and Contact details
+1
+Pharmaceuticals
+% of shares held
+Applicable
+Holding/
+Subsidiary
+/Associate
+No.
+CIN/GLN
+of the Company
+Name and Description
+Name of the Company
+Address
+III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES AS ON MARCH 31, 2020
+100
+% to Total turnover of the company
+210
+NIC Code of the
+Product/Service
+Sr.
+Section
+Category / Sub-Category of the Company
+iii) Name of the Company
+• Towards investment in long term/ short term
+strategic joint ventures &/or partnerships and/or
+subsidiary companies
+• Towards replacement/ up-gradation /modernisation
+of equipment's & plants
+• To fund the research expenditures of ongoing
+research projects specifically those in the advanced
+development stages
+• To fund the project expansion plans of the Company
+• To meet the working capital/ business needs
+of the Company
+The Board may retain its earnings in order to make
+better utilisation of the available funds and increase
+the value of the stakeholders in the long run. The
+retained earnings of the Company may, inter alia, be
+utilised for the following purposes:
+• To fund new acquisitions & investments
+10. MANNER OF UTILISATION OF RETAINED
+EARNINGS
+9. RANGE OF DIVIDEND PAY-OUT
+in India, as may be applicable at the time of
+declaration of dividend shall have bearing on the
+quantum of Dividend declared by the Company.
+Dividend distribution tax or any tax deduction at
+source as required by applicable tax regulations
+- Tax implications
+The Board will keep in mind any restrictions on
+payment of dividends by virtue of any regulation
+or loan covenant, as may be applicable to the
+Company at the time of declaration of dividend.
+- Statutory Restrictions
+The Company is committed to deliver sustainable
+value to all its stakeholders. The Company strives
+to distribute an optimal and appropriate level of
+the profits earned by it in its business and investing
+activity, with the equity shareholders, in the form of
+dividend. As explained in the earlier part of this Policy,
+determining the dividend pay-out is dependent upon
+several factors, both internal to a business and external
+to it. Taking into consideration the aforementioned
+factors, the Board shall have absolute discretion to
+determine & recommend appropriate Dividend pay-out
+for the relevant financial year.
+iv)
+• Towards diversification of business
+11. REVIEW AND AMENDMENT
+Registration Date
+ii)
+CIN
+- ΘΕΣΣ
+i)
+I.
+• Such other manner as the Board may deem fit
+from time to time
+REGISTRATION AND OTHER DETAILS:
+as on the financial year ended on March 31, 2020
+EXTRACT OF ANNUAL RETURN
+FORM NO. MGT-9
+The Transformation Journey
+<44
+The Board may review and amend or modify this policy
+in whole or in part, at any time.
+[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the
+Companies (Management and Administration) Rules, 2014]
+When the markets are favourable, dividend
+pay-out can be liberal. However, in case of
+unfavorable Capital market conditions, Board may
+resort to a conservative dividend pay-out in order
+to conserve cash outflows.
+1234567
+2 Independence Way LLC
+100.00
+Subsidiary
+Not Applicable
+USA
+8. Chattem Chemicals Inc.
+2(87)(ii)
+2(87)(ii)
+100.00
+U24100MH2012FTC225970
+India
+7. Caraco Pharmaceuticals Private
+Limited
+2(87)(ii)
+100.00
+Subsidiary
+Subsidiary
+Not Applicable
+9.
+USA
+Subsidiary
+U85190MH2016NPL286097
+India
+11. Foundation for Disease Elimination
+2(87)(ii)
+100.00
+Dusa Pharmaceuticals, Inc.
+Subsidiary
+India
+10. Faststone Mercantile Company
+Private Limited
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+U51900MH2006PTC159266
+Not Applicable
+Germany
+2(87)(ii)
+Aditya Acquisition Company Ltd.
+3.
+2(87)(ii)
+77.10
+Subsidiary
+Not Applicable
+Israel
+USA
+2.
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+USA
+3 Skyline LLC
+6. Basics GmbH
+Not Applicable
+100.00
+100.00
+Subsidiary
+Not Applicable
+Russia
+AO Ranbaxy
+5.
+Subsidiary
+2(87)(ii)
+Subsidiary
+Not Applicable
+Hungary
+Alkaloida Chemical Company Zrt.
+4.
+2(87)(ii)
+99.99
+- Capital Market
+Considering the state of economy in the Country,
+the policy decisions that may be formulated by
+the Government and other similar conditions
+prevailing in the international market which
+may have a bearing on or affect the business of
+the Company, during uncertain or recessionary
+economic and business conditions, the Board
+may consider retaining a larger part of the profits
+to have sufficient reserves to absorb unforeseen
+circumstances.
+- Macroeconomic conditions
+Annual Report 2019-20
+d) the Directors have prepared the annual accounts on a
+going concern basis;
+e) the Directors have laid down internal financial controls
+to be followed by the Company and that such internal
+financial controls are adequate and were operating
+effectively; and
+f)
+the Directors have devised proper systems to ensure
+compliance with the provisions of all applicable
+laws and that such systems were adequate and
+operating effectively.
+CONSOLIDATED ACCOUNTS
+The Transformation Journey
+The consolidated financial statements for the year ended
+March 31, 2020 have been prepared in accordance with
+Indian Accounting Standards (Ind AS) notified under the
+Companies (Indian Accounting Standards) Rules, 2015.
+ICRA Ltd. has reaffirmed the highest credit rating of '[ICRA]
+A1+'/'[ICRA] AAA(Stable)' for the bank facilities, long term/
+short term borrowings and commercial paper programs
+of the Company.
+Further, CRISIL Ltd. has also reaffirmed the highest credit
+rating of 'CRISIL A1+ and CRISIL AAA/Stable' for short term
+& long term bank facilities and commercial paper programs
+of the Company.
+BUSINESS RESPONSIBILITY REPORTING
+The Business Responsibility Report of the Company for the
+year ended March 31, 2020, forms part of the Annual Report
+and is also made available on the website of the Company
+at: http://www.sunpharma.com/pdflist/all-documents.
+ACKNOWLEDGEMENTS
+Your Directors wish to thank all stakeholders, employees
+and business partners, Company's bankers, medical
+professionals and business associates for their continued
+support and valuable cooperation.
+CREDIT RATING
+The Directors also wish to express their gratitude to
+investors for the faith that they continue to repose
+in the Company.
+<<40
+the Directors have selected such accounting policies
+and applied them consistently and made judgments
+and estimates that are reasonable and prudent so as
+to give a true and fair view of the state of affairs of the
+Company as at March 31, 2020 and of the profit of the
+Company for the year ended on that date;
+The information on conservation of energy, technology
+absorption and foreign exchange earnings and outgo as
+stipulated under Section 134(3)(m) of the Act read with Rule
+8 of the Companies (Accounts) Rules, 2014, is provided as
+'Annexure - G' to this Report.
+EMPLOYEES' STOCK OPTION SCHEMES
+The Company had an Employees' Stock Option Scheme,
+which was inherited from erstwhile Ranbaxy Laboratories
+Limited ("Ranbaxy"). The scheme was through Direct Route
+and had been named as Sun Pharma Employee Stock Option
+Scheme
+2015. The said scheme has been completed
+in February 2020.
+The Scheme was in compliance with Securities and
+Exchange Board of India (Share Based Employee Benefits)
+Regulations, 2014.
+the Directors have taken proper and sufficient
+care for the maintenance of adequate accounting
+records in accordance with the provisions of the
+Act for safeguarding the assets of the Company
+and for preventing and detecting fraud and other
+irregularities;
+Disclosure with respect to the Employees' Stock Option
+Scheme in compliance with Securities and Exchange
+Board of India (Share Based Employee Benefits)
+Regulations, 2014 is available on the Company's
+website and can be accessed through the web link:
+http://www.sunpharma.com/pdflist/all-documents.
+There are no significant and material orders passed by the
+regulators or courts or tribunals which impact the going
+concern status and Company's operations in future.
+WHISTLE BLOWER POLICY / VIGIL MECHANISM
+To create enduring value for all stakeholders and ensure
+the highest level of honesty, integrity and ethical behaviour
+in all its operations, the Company has adopted a 'Global
+Whistle Blower Policy' for Sun Pharmaceutical Industries
+Limited and all its subsidiaries, in addition to the existing
+Global Code of Conduct that governs the actions of its
+employees. Further details on vigil mechanism of the
+Company are provided in the Corporate Governance
+Report, forming part of this Report.
+DIRECTORS' RESPONSIBILITY STATEMENT
+Pursuant to the requirements under Section 134(5) read
+with Section 134(3)(c) of the Act, with respect to Directors'
+Responsibility Statement, it is hereby confirmed that:
+a)
+b)
+in the preparation of the annual accounts for the
+financial year ended March 31, 2020, the applicable
+accounting standards have been followed and there
+are no material departures from the same;
+SIGNIFICANT AND MATERIAL ORDERS
+PASSED BY THE REGULATORS OR COURTS OR
+TRIBUNALS
+CONSERVATION OF ENERGY, TECHNOLOGY
+ABSORPTION AND FOREIGN EXCHANGE
+EARNINGS AND OUTGO
+For and on behalf of the Board of Directors
+Date: May 27, 2020
+The Securities and Exchange Board of India
+("SEBI") vide its Notification dated July 08, 2016
+has amended the SEBI (Listing Obligations and
+Disclosure Requirements) Regulations, 2015 (the
+“Listing Regulations") by inserting Regulation 43A
+in order to make it mandatory to have a Dividend
+Distribution Policy in place by the top five hundred
+listed companies based on their market capitalisation
+calculated as on the 31st day of March of every
+year. The Company, being one of the top five
+hundred listed Companies in India on the basis of
+market capitalisation, requires to comply with the
+requirements of Regulation 43A.
+3. EFFECTIVE DATE
+The Policy shall become effective from the date of its
+adoption by the Board i.e. November 10, 2016.
+4. CATEGORY OF DIVIDENDS
+The Board of Directors shall have the power to
+recommend final dividend to the equity shareholders
+for their approval in the Annual General Meeting of the
+Company. Subject to compliance with the provisions
+of Companies Act, 2013 including the Rules made
+thereunder and other relevant regulations, if any, the
+Board of Directors shall also have the absolute power
+to declare interim dividend during any financial year
+out of the surplus in the profit and loss account and
+out of profits of the financial year in which such interim
+dividend is sought to be declared, as and when they
+consider it fit in compliance with Companies Act, 2013
+and other relevant regulations. Interim Dividend may
+be paid in order to supplement the annual dividend or
+in exceptional circumstances.
+RELEVANT REGULATIONS
+5. PAYMENT OF DIVIDEND FROM RESERVES
+6. CIRCUMSTANCES TO BE CONSIDERED
+WHILE DETERMINING DIVIDEND PAY-OUT
+The Board shall consider the circumstances provided
+below before determination of any dividend payout
+after analysing the prospective opportunities and
+threats, viability of the options of dividend payout or
+retention etc. The decision of dividend payout shall,
+majorly be based on the aforesaid factors considering
+<42
+The Transformation Journey
+Annual Report 2019-20
+the balanced interest of the stakeholders and the
+business requirements of the Company.
+•
+Dividend shall normally be declared from the profit
+earned by the Company during the relevant financial
+year after adjusting for accumulated losses &
+unabsorbed depreciation, if any and out of the carried
+forward profits not transferred to any reserves.
+However, under special circumstances, Dividend may
+be declared out of the accumulated profits earned by
+it in previous years and transferred by it to the free
+reserves, subject to compliance with the requirements
+of the relevant provisions of the Companies Act, 2013
+including the Rules made thereunder.
+Place: Israel
+• Determination and declaring dividend on preference
+shares, if any.
+Subject to the considerations as provided in the Policy,
+the Board shall determine the dividend payout in a
+particular year after taking into consideration the
+operating and financial performance of the Company,
+the advice of executive management including the
+CFO, and other relevant factors.
+Israel Makov
+Chairman
+(DIN: 05299764)
+41 >>>
+Statutory Reports
+DIVIDEND DISTRIBUTION POLICY
+Board's Report
+The Policy shall not apply to:
+Annexure - A
+2.
+OBJECTIVES AND SCOPE:
+The Board of Directors (the "Board") of the Sun
+Pharmaceutical Industries Limited (the "Company")
+recognises the need to lay down a broad framework
+for considering decisions by the Board of the Company,
+with regard to distribution of dividend (including any
+interim dividend) to its equity shareholders and/ or
+retaining or plough back of its profits.
+The Policy sets out the circumstances and different
+factors for consideration by the Board at the time of
+taking such decisions of distribution or of retention
+of profits, in the interest of providing transparency
+to the equity shareholders. The Policy is not an
+'alternative' but a 'Guide' to the decision of the Board
+for recommending dividend, which may be made after
+taking into consideration all the relevant circumstances
+enumerated hereunder and such other factors as may
+be decided as relevant by the Board.
+While recommendation of Dividend shall be guided by
+this Policy, in extraordinary circumstances, the Board
+shall have complete liberty to recommend dividend in
+deviation to this policy, if so deemed necessary in the
+best interests of the Company and its stakeholders.
+The Policy reflects the intent of the Company to
+reward its equity shareholders by sharing a portion
+of its profits after adjusting for accumulated losses,
+if any, and also retaining sufficient funds for future
+growth of the Company. The Company intends to
+pay, subject to the circumstances and factors enlisted
+hereon, dividend, which shall be consistent with the
+performance of the Company over the years.
+1.
+Report on Corporate Governance and Certificate of the
+Auditors of the Company regarding compliance of the
+conditions of Corporate Governance as stipulated in Part C
+of Schedule V of the Listing Regulations, are provided in a
+separate section and forms part of this Report.
+CORPORATE GOVERNANCE REPORT
+The Management Discussion and Analysis as prescribed
+under Part B of Schedule V read with Regulation 34(3) of
+the Listing Regulations is provided in a separate section and
+forms part of this Report.
+The Board will analyse the requirement of
+necessary funds considering the long term or
+short term projects proposed to be undertaken
+by the Company and the viability of the options
+in terms of cost of raising necessary funds from
+outsiders such as bankers, lending institutions
+or by issuance of debt securities or plough back
+its own funds.
+Cost of borrowings
+Magnitude of earnings of the Company
+Since dividend is directly linked with the
+availability of earning over the long haul, the
+magnitude of earnings will significantly impact the
+dividend declaration decisions of the Company.
+The efficiency with which the Company
+uses its capital will impact the decision of
+dividend declaration.
+Return on invested capital
+In addition to the circumstances covered under point 6
+above, the Board shall, inter alia, consider the following
+financial parameters, while taking decisions of a
+dividend payout during a particular year-
+Obligations to creditors
+7. THE FINANCIAL PARAMETERS THAT SHALL
+BE CONSIDERED WHILE DECLARING/
+RECOMMENDING DIVIDEND
+The Board, while considering the decision of
+dividend pay-out or retention of a certain amount
+or entire profits and/or out of the accumulated
+profits of the Company, shall, as far as possible,
+consider the expectations of the major
+stakeholders including the small shareholders
+Expectations of major stakeholders, including
+small shareholders
+Prudential & Strategic requirements
+The Board shall analyse the ongoing and
+prospective projects and strategic decisions
+including need for replacement of capital assets,
+expansion and modernisation etc., before
+recommending Dividend Pay-out for any financial
+year with an object to build a healthy reserve of
+retained earnings to augment long term strength
+and to build a pool of internally generated
+funds to provide long-term resources as well as
+resource-raising potential for the Company.
+The decision of dividend pay-out shall also be
+subject to compliance with covenants contained
+in any agreement entered into by the Company
+with the Lenders/ Debenture Trustee's, from time
+to time, if any.
+Covenants with lenders/ Debenture Trustees,
+if any
+The Board shall examine the implication of
+relevant statutory requirements including
+payment of Dividend Distribution Tax, transfer
+of a certain portion of profits to Reserves etc.,
+if applicable, on the financials of the Company
+at the time of taking decision with regard to
+dividend declaration or retention of profit.
+of the Company who generally expect a regular
+dividend payout.
+Transfer to Reserves and other Statutory
+Requirements
+The Company should be able to repay its
+debt obligations without much difficulty over
+a reasonable period of time. The decision
+of dividend declaration shall be taken after
+considering the volume of such obligations and
+time period of repayment.
+If during any financial year, the Board determines
+that the profits of the Company are inadequate
+on standalone basis and/or consolidated basis,
+the Board may decide not to declare dividends for
+that financial year.
+External Factors
+- Past performance/ reputation of the Company
+The trend of the performance/ reputation of the
+Company that has been during the past years
+determine the expectation of the shareholders.
+In addition to the above, the general working
+capital requirements within the Company will also
+impact the decision of dividend declaration.
+- General Working capital requirement
+The Company's growth oriented decision
+to conserve cash in the Company for future
+expansion plan impacts shareholders expectation
+for the long run which shall have to considered by
+the Board before taking dividend decision.
+- Product/Project expansion plan
+Adequacy of profits
+Internal Factors
+PAYOUT
+8. FACTORS THAT MAY AFFECT DIVIDEND
+Board's Report
+Statutory Reports
+43 >>
+Post dividend Earning Per Share (EPS)
+The post dividend EPS can have strong impact
+on the funds of the Company, thus, impacting
+the overall operations on day-today basis and
+therefore, affects the profits and can impact
+the decision for dividend declaration during a
+particular year.
+.
+The Board will consider the impact of proposed
+dividend on the operating cash flow of the
+Company and shall satisfy itself of its adequacy
+before taking a decision on whether to declare
+dividend or retain its profits.
+Operating cash flow of the Company
+any of the Company from the previous
+financial years.
+INTERNAL FINANCIAL CONTROLS
+Sun Pharma believes that internal control is a prerequisite
+of governance and that action emanating out of agreed
+business plans should be exercised within a framework
+of checks and balances. The Company has a well-
+established internal control framework, which is designed
+to continuously assess the adequacy, effectiveness and
+efficiency of financial and operational controls. The
+management is committed to ensuring an effective internal
+control environment, commensurate with the size and
+complexity of the business, which provides an assurance
+on compliance with internal policies, applicable laws,
+regulations and protection of resources and assets.
+Global Internal Audit
+An independent and empowered Global Internal Audit
+Function (GIA) at the corporate level with support from
+a Big 4 / equally reputed audit firm, wherever required,
+carries out risk-focused audits and reviews across all
+businesses (both in India and overseas), to ensure that
+business process controls are adequate and are functioning
+effectively. These reviews include financial, operational
+and compliance controls and risk mitigation plans. The
+Company's operating management closely monitors
+the internal control environment and ensures that the
+recommendations are effectively implemented. The Audit
+Committee of the Board monitors performance of the
+Internal Audit Function, periodically reviews key findings
+and provides strategic guidance.
+GIA's functioning is governed by the Audit Charter, duly
+approved by the Audit Committee of the Board, which
+stipulates matters contributing to the proper and effective
+conduct of the audit. The audit processes are fully
+automated on a 'SunScience' tool which integrates Internal
+Audits, Automated follow-ups for closure of observations,
+Internal Financial Controls (IFC) and Enterprise Risk
+Management (ERM) modules.
+39 >>
+Organisations (COSO) to further the organisation's
+endeavor to strengthen ERM framework and processes
+using best practices. The ERM team engages with all
+Function heads to identify internal and external events
+that may have an adverse impact on the achievement of
+Company's objectives and periodically monitors changes
+in both internal and external environment leading to
+emergence of a new threat/risk. These risks are captured in
+the form of a risk register with all the relevant information
+such as risk description, root cause and any existing
+mitigation plans. The risk register is refreshed annually.
+Risks are categorised into Strategic, Financial, Operational,
+Compliance & Reputational. ERM risk assessments covering
+Company's various businesses and functions are a key input
+for the annual internal audit program. During FY20, the
+ERM team focused on reviewing effectiveness of actions
+taken to mitigate certain business, cyber security and other
+operational risks.
+Statutory Reports
+CORPORATE SOCIAL RESPONSIBILITY
+In compliance with the requirements of Section 135
+of the Act read with the Companies (Corporate Social
+Responsibility Policy) Rules, 2014, the Board of Directors
+have constituted a Corporate Social Responsibility (CSR)
+Committee. The details of membership of the Committee
+and the meetings held are detailed in the Corporate
+Governance Report, forming part of this Report. The
+contents of the CSR Policy of the Company as approved
+by the Board on the recommendation of the CSR
+Committee are available on the website of the
+Company and can be accessed through the web
+link: http://www.sunpharma.com/policies.
+During the year, the Company has spent 43.71 Million
+which amounts to about 3.24% of the average net profits
+of the Company in the three preceding financial years.
+The annual report on CSR activities containing details of
+expenditure incurred by the Company and brief details
+on the CSR activities are provided in 'Annexure - F'
+to this Report.
+PUBLIC DEPOSITS
+The Company has not accepted any deposit from the Public
+during the year under review, under the provisions of the
+Act and the rules framed thereunder.
+MANAGEMENT DISCUSSION AND ANALYSIS
+Board's Report
+The Company has developed & implemented an
+integrated Enterprise Risk Management Framework
+through which it identifies monitors, mitigates & reports
+key risks that impacts its ability to meet the strategic
+objectives. The Company's ERM framework is based on
+the recommendations by the Committee of Sponsoring
+The Board of Directors has constituted a Risk Management
+Committee which is entrusted with the responsibility of
+overseeing various strategic, operational and financial
+risks that the organisation faces, along with the adequacy
+of mitigation plans to address such risks. The Corporate
+Governance Report, which forms part of this report,
+contains the details of Risk Management Committee of the
+Company. There is an overarching Risk Management Policy
+in place has been reviewed and approved by the Board.
+RISK MANAGEMENT
+if
+The Transformation Journey
+Annual Report 2019-20
+Cost Auditor
+The Board has appointed Messrs B. M. Sharma &
+Associates, Cost Accountants, Pune (Firm's Registration No.
+100537) as Cost Auditor of the Company for conducting
+Cost Audit in respect of Bulk Drugs & Formulations of your
+Company for the financial year 2020-21.
+The Company is required to maintain Cost Records as
+specified by the Central Government under Section 148(1)
+of the Act and accordingly, such accounts and records are
+made and maintained by the Company.
+SECRETARIAL STANDARDS
+The Company has complied with the applicable Secretarial
+Standards as amended from time to time.
+LOANS, GUARANTEES & INVESTMENTS
+The particulars of loans, guarantees and investments have
+been disclosed in the Financial Statements.
+RELATED PARTY TRANSACTIONS
+The policy on Related Party Transactions as approved
+by the Board is available on the website of the
+Company and can be accessed through the web link:
+http://www.sunpharma.com/policies. All contracts/
+arrangements/transactions entered by the Company during
+the year under review with the related parties were in the
+ordinary course of business and on an arm's length basis.
+As required under Section 134(3)(h) of the Act, details of
+transactions entered with related parties under the Act
+exceeding ten percent of the annual consolidated turnover
+as per the last audited financial statements are given in
+Form AOC-2 provided as 'Annexure - E' to this Report.
+AUDIT COMMITTEE COMPOSITION
+The details pertaining to composition of Audit Committee
+are included in the Corporate Governance Report, which
+forms part of this Report.
+100.00
+2(87)(ii)
+1.
+12. Green Eco Development Centre
+42. Rexcel Egypt LLC
+Limited
+2(87)(ii)
+100.00
+Subsidiary
+U51900MH2006PTC158889
+Egypt
+India
+2(87)(ii)
+100.00
+Subsidiary
+U70109MH2020PLC337007
+India
+40. Realstone Infra Limited
+41. Realstone Multitrade Private
+2(87)(ii)
+Not Applicable
+100.00
+2(87)(ii)
+100.00
+Subsidiary
+U73100MH2005PTC150606
+India
+India
+45. Softdeal Trading Company Private
+Limited
+Subsidiary
+44. Skisen Labs Private Limited
+96.81
+Subsidiary
+Not Applicable
+Romania
+43. Terapia SA
+2(87)(ii)
+2(87)(ii)
+and Control of India
+67.50
+Not Applicable
+Subsidiary
+Not Applicable
+South Africa
+36. Ranbaxy Pharmaceuticals (Pty) Ltd.
+2(87)(ii)
+86.16
+100.00
+Subsidiary
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Italy
+Nigeria
+35. Ranbaxy Nigeria Limited
+Not Applicable
+Subsidiary
+2(87)(ii)
+37. "Ranbaxy Pharmaceuticals Ukraine"
+USA
+39. Ranbaxy Signature LLC
+Ranbaxy Pharmacie Generiques)
+2(87)(ii)
+100.00
+Subsidiary
+LLC
+Not Applicable
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Ukraine
+38. Sun Pharma France (Formerly
+France
+34. Ranbaxy Italia S.P.A.
+Subsidiary
+2(87)(ii)
+Not Applicable
+Mexico
+61. Sun Pharma Japan Ltd.
+58. Sun Pharma Egypt Limited
+59. Sun Pharma Global FZE
+60. Sun Pharma Holdings
+54. Sun Pharma DE Mexico S.A. DE C.V.
+55. Sun Pharma DE Venezuela, C.A.
+56. Sun Pharma Distributors Limited
+57. Sun Pharma East Africa Limited
+2(87)(ii)
+Subsidiary
+100.00
+Not Applicable
+Canada
+53. Sun Pharma Canada Inc.
+2(87)(ii)
+100.00
+Subsidiary
+Subsidiary
+Not Applicable
+75.00
+Venezuela
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Kenya
+2(87)(ii)
+2(87)(ii)
+100.00
+U51909MH2019PLC322778
+India
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Subsidiary
+100.00
+Australia
+2(87)(ii)
+Not Applicable
+Brazil
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Subsidiary
+Mexico
+2(87)(ii)
+70.00
+Subsidiary
+Not Applicable
+South Africa
+46. Sonke Pharmaceuticals Proprietary
+Limited
+47. SPIL De Mexico S.A. DE C.V.
+48. Sun Farmaceutica do Brasil Ltda.
+49. Sun Laboratories FZE
+52. Sun Pharma ANZ Pty Ltd
+100.00
+UAE
+100.00
+Subsidiary
+Not Applicable
+Netherlands
+2(87)(ii)
+100.00
+2(87)(ii)
+Subsidiary
+India
+50. Sun Pharma Laboratories Limited
+51. Sun Pharma (Netherlands) B.V.
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+U25200MH1997PLC240268
+2(87)(ii)
+U51900MH2006PTC159237
+Subsidiary
+Name of the Company
+Sr.
+Holding/
+Address
+Board's Report
+Statutory Reports
+of the Company
+45 >>
+100.00
+Subsidiary
+U45200MH2010PTC201611
+2(87)(ii)
+100.00
+Subsidiary
+2(87)(ii)
+USA
+CIN/GLN
+Subsidiary
+/Associate
+Subsidiary
+Not Applicable
+USA
+21. One Commerce Drive LLC
+Hospitalier
+20. Ohm Laboratories Inc.
+No.
+2(87)(ii)
+Subsidiary
+Not Applicable
+France
+19. Office Pharmaceutique Industriel Et
+Applicable
+Section
+% of shares held
+100.00
+India
+18. Neetnav Real Estate Private Limited
+Inc.
+14. JSC Biosintez
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+USA
+Russia
+13. Insite Vision Incorporated
+2(87)(ii)
+100.00
+Subsidiary
+U90009GJ2010PLC062892
+India
+100.00
+Limited
+Not Applicable
+Subsidiary
+100.00
+17. Mutual Pharmaceutical Company
+(Formerly Laboratorios Ranbaxy,
+S.L.U.)
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Spain
+16. Sun Pharma Laboratorios, S.L.U.
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Japan
+15. Kakayu Co., Ltd.
+2(87)(ii)
+100.00
+2(87)(ii)
+Not Applicable
+Not Applicable
+Not Applicable
+Brazil
+30. Ranbaxy Farmaceutica Ltda.
+2(87)(ii)
+100.00
+Subsidiary
+Subsidiary
+Not Applicable
+29. Ranbaxy (U.K.) Limited
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Thailand
+UK
+2(87)(ii)
+100.00
+31. Ranbaxy Holdings (U.K.) Limited
+USA
+Ireland
+33. Ranbaxy Ireland Limited
+2(87)(ii)
+100.00
+Subsidiary
+2(87)(ii)
+Not Applicable
+32. Ranbaxy Inc.
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+UK
+USA
+100.00
+Not Applicable
+Not Applicable
+100.00
+Subsidiary
+Not Applicable
+USA
+24. PI Real Estate Ventures, LLC
+25. Ranbaxy South Africa (Pty) Ltd.
+26. Ranbaxy (Malasiya) SDN.BHD.
+27. Ranbaxy (Poland) SP Z.O.O.
+28. Ranbaxy (Thailand) Co., Ltd.
+23. Pharmalucence, Inc.
+2(87)(ii)
+100.00
+Subsidiary
+Not Applicable
+Russia
+22. OOO "Sun Pharmaceutical
+Industries" Limited
+2(87)(ii)
+Subsidiary
+Subsidiary
+2(87)(ii)
+USA
+77.10
+Subsidiary
+Not Applicable
+2(87)(ii)
+95.67
+Subsidiary
+Not Applicable
+Malasiya
+2(87)(ii)
+Poland
+Subsidiary
+Not Applicable
+South Africa
+2(87)(ii)
+100.00
+100.00
+0
+5192817
+0
+5192817
+0.05
+0.22
+0.00
+1218550
+0
+0.05
+1271108
+0
+0.22
+1271108
+1218550
+5263150
+0
+5263150
+16966085
+0.00
+0.71
+-0.02
+vii) Foreign Nationals
+24636
+0
+0
+0.00
+24992
+24992
+0.00
+0.00
+viii) Hindu Undivided Family
+ix) IEPF
+24636
+Sub-total (B)(2):-
+0.00
+Total Public Shareholding
+(B)=(B)(1)+(B)(2)
+0.00
+(ii) Shareholding of Promoter(s)
+Shareholding at the beginning of the year
+Sr.
+Shareholder's
+No.
+100.00
+1
+No. of
+Shares
+230285690
+(iii) Change in Promoters' Shareholding
+Sr.
+No.
+16966085
+Mr. Dilip S. Shanghvi
+2390022702 9312268 2399334970 100.00 2391227406 8107564 2399334970
+0.00
+0.00
+306103721
+1085179321 9300268 1094479589
+12.76 302473365 8065393
+310538758
+45.62 1079104871 8095564 1087200435
+12.94
+0.18
+45.31
+-0.30
+C. Shares held by
+Custodian For GDRs
+& ADRs
+Employee Benefit Trust under
+SEBI (Share based employee
+benefit) Regulations, 2014
+GRAND TOTAL (A+B+C)
+*includes Promoter Group
+0
+0
+0
+0
+296855505 9248216
+0.73
+0
+0
+d) Others (specify)
+i) Non Resident Indians
+(Repat)
+5427442 279740
+5707182
+0.24
+5798820 266155
+Shares the year
+6064975
+0.01
+ii) Non Resident Indians
+(Non Repat)
+3161429
+0
+3161429
+0.13
+0.25
+3468548
+Total
+% of Total
+1.
+The Transformation Journey
+Category of shareholders
+No. of shares held at the beginning of
+the year
+Demat Physical
+Annual Report 2019-20
+during
+No. of shares held at the end of
+Total
+% of Total
+Shares
+Demat
+Physical
+%
+Change
+the year
+0
+3468548
+0.14
+0.12
+0.00
+v) Other Directors
+3746747
+0
+3746747
+2878967
+0.16
+0
+2618747
+0.11
+-0.05
+vi) Trusts
+17502708
+2618747
+0
+2878967
+0.12
+0.01
+iii) Foreign Companies
+276965
+0
+276965
+0.01
+17713
+0
+17713
+0.00
+-0.01
+iv) Clearing Member
+2938110
+0
+2938110
+17502708
+Shareholding at the end of the year
+% of
+0
+5483904
+230285690
+9.60
+230285690
+At the end of the year
+At the beginning of the year
+At the end of the year
+At the beginning of the year@
+Various dates during the year$
+At the end of the year@
+At the beginning of the year
+Various dates during the year$
+At the end of the year
+Mr. Kalyanasundaram Subramanian
+Increase Decrease in Share holding
+5.
+Decrease in Share holding
+Mr. Sailesh T. Desai
+Increase
+4.
+9.60
+Mr. Sudhir V. Valia
+9.60
+230285690
+9.60
+230285690
+At the beginning of the year
+Mr. Dilip S. Shanghvi
+2.
+0
+0
+3.
+14345019
+0.60
+14345019
+0.00
+201
+0.00
+201
+0.11
+2610747
+0.11
+2610747
+0.11
+2610747
+0.05
+(1128000)
+0.16
+3738747
+0.16
+3738747
+0.60
+14345019
+0.60
+14345019
+0.60
+0
+(201)
+0
+0
+19300180
+(0.57)
+(13724801)
+19300180
+1.37
+33024981
+1.37
+33024981
+0.90
+21532401
+0.80
+0.90
+0.90
+21532401
+0.46
+11036499
+0.44
+10495902
+0.44
+10495902
+0.90
+21532401
+0.80
+19300180
+0.80
+0
+0
+0
+At the beginning of the year
+Mr. Israel Makov
+1.
+Company
+% of total
+shares of the
+No. of
+shares
+% of total
+shares of the
+Company
+No. of
+shares
+No.
+Name of Director / KMP
+Sr.
+Shareholding at the beginning
+of the year
+Cumulative shareholding
+during the year
+(v) Shareholding of Directors and Key Managerial Personnel: (Held singly or jointly as first holder)
+Annual Report 2019-20
+The Transformation Journey
+<50
+Note: Shareholding has been consolidated on PAN basis.
+@Forming part of promoter group/ person acting in concert.
+*The trading has taken place on various dates, therefore the change has been shown on consolidated basis.
+At the end of the year
+0.00
+0
+0
+expenses paid and
+expenses received, Loan
+taken and repaid, Interest
+expense, Payment towards
+Lease liabilities
+and Rent income
+Revenue from contracts
+with customers (net of
+returns), Reimbursement of
+expenses received, Interest
+Income, and Rent income
+including Deposit amount
+On-going
+Amount paid as
+contracts or arrangements Date(s) of approval by the advances, as on
+or transactions including Board, if any:
+March 31, 2020
+the value, if any
+if any:
+The related party
+transactions entered
+during the year were
+in ordinary course of
+business and on an
+arm's length basis. The
+aggregate amount of
+transactions for the
+FY20 was 75,351.4
+Million
+Since these transactions Nil
+were in the ordinary
+course of business
+and were on arm's
+length basis, approval
+of the Board was not
+applicable.
+Purchase of goods,
+property, plant &
+equipment, Revenue
+from contracts with
+customers (net of
+returns), Sale of property,
+plant & equipment and
+investments, Dividend
+Income, Receiving and
+Rendering of Service,
+Reimbursement of
+The related party
+transactions entered
+during the year were
+in ordinary course of
+business and on an
+arm's length basis. The
+aggregate amount of
+transactions for the
+FY20 was 37,002.7
+Million
+Place: Israel
+Date: May 27, 2020
+58
+For and on behalf of the Board of Directors
+Israel Makov
+Chairman
+(DIN: 05299764)
+0
+At the beginning of the year
+At the end of the year
+Since these transactions Nil
+were in the ordinary
+course of business
+and were on arm's
+length basis, approval
+of the Board was not
+applicable.
+(Wholly owned
+subsidiary)
+Sun Pharma
+Distributors Limited
+(Wholly owned
+subsidiary)
+Board's Report
+Annexure - E
+(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013
+("the Act") and rule 8(2) of the Companies (Accounts) Rules, 2014)
+Disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub-section
+(1) of section 188 of the Companies Act, 2013 including certain arm's length transactions under third proviso thereto
+1.
+Details of contracts or arrangements or transactions not at arm's length basis - NIL
+2.
+Details of material contracts or arrangement or transactions (i.e. exceeding ten percent of the annual
+consolidated turnover as per the last audited financial statements) at arm's length basis
+Name(s) of the related
+Sr.
+party and nature of
+No.
+Nature of contracts/
+arrangements/transactions
+relationship
+1.
+Sun
+Duration of
+the contracts/
+arrangements/
+transactions
+On-going
+Salient terms of the
+Pharma
+2.
+Laboratories
+Limited
+10. Mr. Sunil Ajmera
+0
+0
+At the end of the year
+0
+0
+0
+At the beginning of the year
+Mr. Vivek Chaand Sehgal
+7.
+0
+0
+0
+0
+At the end of the year
+0
+0
+0
+0
+At the beginning of the year
+Ms. Rekha Sethi
+6.
+0
+0
+0
+0
+21615547
+At the end of the year
+0
+0
+0
+0
+0
+At the beginning of the year
+Mr. C.S. Muralidharan
+9.
+0.00
+8000
+0.00
+8000
+At the end of the year
+0.00
+8000
+0.00
+8000
+At the beginning of the year
+Mr. Gautam Doshi
+8.
+0
+0
+0
+0.90
+21615547
+0.90
+11667388
+152884946
+82093234
+5.89
+141217558
+5.89
+40.30
+967051732
+40.30
+40.30
+967051732
+0.49
+0.30
+40.00
+959772578
+40.00
+959772578
+Various dates during the year*
+At the end of the year
+At the beginning of the year
+At the beginning of the year
+Various dates during the year*
+At the end of the year
+At the beginning of the year
+ICICI Prudential Value Discovery
+Fund and various Fund Accounts
+Increase Decrease in Share holding
+Increase / Decrease in Share holding
+Life Insurance Corporation of India
+and its various Funds
+7279154
+967051732
+141217558
+152884946
+6.37
+6.37
+7.
+Finance (P) Ltd.
+Lakshdeep Investments &
+6.
+Ms. Raksha S. Valia@
+5.
+Aditya Medisales Limited@
+4.
+3.46
+83082904
+3.46
+3.46
+83082904
+0.04
+989670
+83082904
+Various dates during the year*
+At the end of the year
+3.42
+82093234
+3.42
+6.37
+152884946
+Shanghvi Finance Private Limited@
+Increase / Decrease in Share holding
+1.
+3.
+2.
+of the Company
+of the Company
+% of total
+shares
+No. of
+shares
+% of total
+shares
+No. of
+shares
+during the year
+of the year
+Cumulative shareholding
+Shareholding at the beginning
+Increase / Decrease in
+Shareholding during the year
+At the end of the year
+Mr. Dilip S. Shanghvi At the beginning of the year
+0.0
+9.60
+0 230285690
+9.60
+% change
+in shareholding
+during the Year
+% of shares
+Pledged/
+encumbered to
+total shares
+No. of total Shares
+Shares
+of the
+Company
+% of shares
+Pledged/
+encumbered to
+total shares
+total Shares
+of the Company
+230285690
+At the beginning of the year
+9.60
+9.60
+Company
+% of total
+shares of the
+No. of
+shares
+% of total
+shares of the
+Company
+No. of
+shares
+No.
+For Each of the top 10 shareholders
+Sr.
+Cumulative shareholding
+during the year
+Shareholding at the beginning
+of the year
+(iv) Shareholding Pattern of top ten shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
+(Note: Since the 3 promoter group entities/persons are also included here in below, the total list is of top 13 shareholders
+other than Directors, Promoter and Holders of GDRs and ADRs)
+Board's Report
+Statutory Reports
+49 >>
+9.60
+230285690
+9.60
+230285690
+9.60
+230285690
+No Change during the year
+230285690
+AOC-2
+40153960
+40153960
+18285010
+Various dates during the year*
+At the end of the year
+At the beginning of the year
+Various dates during the year*
+At the end of the year
+At the beginning of the year
+0.25
+5966280
+0.25
+5966280
+1.06
+25502820
+1.06
+0.76
+25502820
+25502820
+0.22
+5298895
+Various dates during the year*
+At the end of the year
+At the beginning of the year
+0.84
+20203925
+0.84
+1.29
+30963873
+1.06
+24251290
+1.01
+24251290
+20347779
+21615547
+0.67
+16131643
+Various dates during the year*
+At the end of the year
+At the beginning of the year
+Various dates during the year*
+At the end of the year
+At the beginning of the year
+Various dates during the year*
+At the end of the year
+0.23
+0.23
+5483904
+0.91
+21796901
+0.91
+21796901
+0.91
+21796901
+0.06
+1449122
+0.85
+20347779
+0.85
+1.01
+24251290
+1.01
+1.29
+1.29
+30963873
+0.01
+1.31
+31384907
+1.31
+31384907
+At the beginning of the year
+1.41
+33830352
+1.41
+33830352
+At the end of the year
+1.41
+33830352
+1.41
+33830352
+At the beginning of the year
+1.67
+40153960
+1.67
+40153960
+At the end of the year
+1.67
+At the end of the year
+1.67
+31384907
+31384907
+138025
+30963873
+20203925
+Various dates during the year*
+At the end of the year
+At the beginning of the year
+Increase Decrease in Share holding
+13. Government of Singapore
+12. Government Pension Fund Global
+Increase / Decrease in Share holding
+11. Aditya Birla Sun Life Trustee Private
+Limited a/c Aditya Birla Sun Life Equity
+Fund and various Fund Accounts
+Increase/Decrease in Share holding
+10. UTI - Nifty Exchange Traded Fund and
+various Fund Accounts
+Increase/Decrease in Share holding
+Increase Decrease in Share holding
+HDFC Trustee Company Ltd. A/C HDFC
+Balanced Advantage Fund and various
+Fund Accounts
+Increase Decrease in Share holding
+SBI-ETF Nifty 50 and various Fund
+Accounts
+Increase / Decrease in Share holding
+Reliance Capital Trustee Co Ltd. A/C
+Nippon India Arbitrage Fund and various
+Fund Accounts
+9.
+8.
+1.28
+30825848
+1.28
+30825848
+At the beginning of the year
+1.31
+1.31
+Statutory Reports
+% of
+Date: 27th May 2020
+Place: Mumbai.
+2. Other Non-Executive Directors
+Fee for attending board / committee
+meetings
+Commission
+Others, please specify
+Total (2)
+Total (B)=(1+2)
+Overall ceiling as per the Act:
+Total Managerial Remuneration (A+B):
+(Amount in *)
+Total (1)
+Name of Directors
+(1)
+Mr. Vivek
+Chaand
+Sehgal
+(2)
+Mr. Gautam
+Doshi
+Mr. Sudhir V.
+Valia*
+Mr. Israel
+Makov
+Total
+Amount
+(3)
+(4)
+Ms. Rekha
+Sethi
+Others, please specify
+Commission
+Fee for attending board / committee
+meetings
+4.
+Commission - as % of profit
+5.
+Others, please specify
+Total (A)
+Note:
+32601900
+60547876
+14025015
+43975183
+151149974
+Ceiling as per the Act: *3,024 Million (10% of Net Profits of the Company calculated as per Section 198 of the Companies Act, 2013)
+* Mr. Sudhir Valia was a Whole-time Director upto May 29, 2019. He stepped down from the position of Whole-time Director of the Company
+and became a Non-Executive Non-Independent Director of the Company with effect from May 29, 2019. The remuneration to him for the year
+2019-20 includes Salary and the following amounts paid at the time of full and final settlement: PL encashment of *15,054,320 and Gratuity of
+*38,891,827 which is being reimbursed by LIC as per policy.
+Amount paid towards sitting fees for the meetings attended by Mr. Sudhir Valia as Non-executive Director i.e. after May 29, 2019 is included
+under point no. VI B.
+# Mr. Kalyanasundaram Subramanian's remuneration is with effect from July 04, 2019 till March 31, 2020
+B.
+Remuneration to other directors for the year ended March 31, 2020:
+(The remuneration to Non-Executive Directors consist only of sitting fees)
+Sr.
+Particulars
+No.
+1. Independent Directors
+(5)
+(1) to (5)
+1900000
+600000
+C.
+Sr.
+No.
+Remuneration to Key Managerial Personnel other than MD / Manager / WTD
+(As per Form 16, on actual payment basis)
+Particulars of Remuneration
+Annual Report 2019-20
+Key Managerial Personnel
+Mr. Sunil Ajmera
+(Company
+Secretary)
+Mr. C.S.
+Muralidharan
+(Chief Financial
+Officer)
+(in Million)
+Total
+1.
+Gross salary
+(a) Salary as per provisions contained in section 17(1) of the Income-tax
+Act, 1961
+13.98
+38.10
+52.08
+(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
+0.03
+The Transformation Journey
+Sweat Equity
+157649974
+* Amount paid towards sitting fees for the meetings attended by Mr. Sudhir Valia after May 29, 2019 as a Non-Executive Director.
+2100000
+4600000
+1900000
+600000
+2100000
+1900000
+0
+600000
+0
+4600000
+1900000
+0
+900000
+1000000
+0
+2100000
+900000
+900000
+1000000
+1000000
+1900000
+6500000
+Not applicable since no commission was paid during the year.
+Sitting Fee is $100,000 for each meeting of the Board/Committee attended by the Director
+except for Corporate Governance and Ethics Committee for which the sitting fee is $50,000
+for each meeting
+<52
+0.79
+3.
+1961
+84.2
+64,342.4
+97.4
+94.4
+64,558.2
+Change in Indebtedness during the financial year
+Addition: Principal Amount (3)/(4)
+Reduction: Principal Amount
+109,854.2
+112,373.6
+109,854.2
+13.0
+118.4
+112,386.6
+(10.2)
+(37.6)
+(47.8)
+Net Change
+(10.2)
+(2,557.0)
+(13.0)
+(2,580.2)
+Indebtedness at the end of the financial year
+Change: Addition/ (Reduction) in Interest accrued but not Due
+Total (i+ii+iii)
+10.2
+iii) Interest accrued but not due (2)
+57 >>>
+0
+0
+0
+0
+@includes shares transferred as margin, if any
+$ The trading has taken place on various dates, therefore the change has been shown on consolidated basis.
+V. INDEBTEDNESS
+Indebtedness of the Company including interest outstanding/accrued but not due for payment
+(in Million)
+Secured Loans
+excluding deposits
+Unsecured Loans
+Deposits (1)
+Total Indebtedness
+Indebtedness at the beginning of the financial year
+i) Principal Amount
+ii) Interest due but not paid
+108.2
+64,258.2
+97.4
+64,463.8
+i) Principal Amount
+108.2
+61,738.8
+84.4
+Mr. Sudhir V.
+Valia*
+Mr. Sailesh T.
+Desai
+Mr. Kalyana-
+sundaram
+Subramanian#
+Total Amount
+1.
+Gross salary
+(a) Salary as per provisions
+contained in section 17(1) of
+the Income-tax Act, 1961
+(b) Value of perquisites u/s 17(2)
+Income-tax Act, 1961
+32358000
+60534676
+13329396
+43935583
+150157655
+243900
+13200
+695619
+39600
+992319
+(c) Profits in lieu of salary under
+section 17(3) Income tax Act,
+Mr. Dilip S.
+Shanghvi
+Stock Option
+No.
+Sr.
+61,931.4
+ii) Interest due but not paid
+iii) Interest accrued but not due(2)
+46.6
+Total (i+ii+iii)
+108.2
+61,785.4
+84.4
+46.6
+61,978.0
+Above schedule does not include lease liability as per Ind AS 116.
+Notes:
+(1) Deposits are Security Deposits Received. The change during the year has been shown on net basis.
+(2) Interest accrued but not due on borrowings.
+(3) Includes effect of exchange rate changes during the year.
+(4) Ind AS adjustment during the year of External commercial borrowing & Commercial paper are shown as addition in principal amount.
+51 >>>
+Statutory Reports
+Board's Report
+VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
+A. Remuneration to Managing Director, Whole-time Directors and/or Manager for the year ended March 31,
+2020: (As per Form 16)
+(Amount in *)
+Particulars of Remuneration
+0.82
+2.
+2.
+d.
+e.
+f.
+g.
+h.
+i.
+The Securities and Exchange Board of India
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011;
+The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015;
+The Securities and Exchange Board of India (Share
+Based Employee Benefits) Regulations, 2014;
+C.
+The Securities and Exchange Board of India
+(Buy-back of Securities) Regulations, 2018;
+The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2009
+-
+Not applicable to the Company for the
+year under review;
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993, regarding the Companies
+Act and dealing with client - Not applicable
+to the Company;
+The Securities and Exchange Board of India
+(Issue and Listing of Debt Securities) Regulations,
+2008 - Not applicable to the Company for the
+year under review;
+We have also examined compliance with the
+applicable clauses of Secretarial Standards with
+respect to meeting of Board of Directors (SS-1) and
+General Meetings (SS-2) issued by The Institute of
+Company Secretaries of India under the provisions of
+Companies Act, 2013;
+During the period under review, the Company has
+complied with the provisions of the Act, Rules,
+Regulations, Guidelines etc. mentioned above
+The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2018 - Not applicable to the
+Company for the year under review;
+b.
+a. The Securities and Exchange Board of India
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015;
+The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India
+("SEBI") Act, 1992:
+Board's Report
+Annexure - D
+To,
+The Members,
+Form No. MR-3
+SECRETARIAL AUDIT REPORT
+FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2020.
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014
+and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]
+Sun Pharmaceutical Industries Limited,
+Vadodara, Gujarat.
+We have conducted the Secretarial Audit of the
+compliances of applicable statutory provisions and the
+adherence to good corporate governance practice by
+Sun Pharmaceutical Industries Limited ("the Company").
+Secretarial Audit was conducted in a manner that provided
+us a reasonable basis for evaluating the corporate
+conducts / statutory compliances and expressing our
+opinion thereon.
+Based on our verification of the Company's books, papers,
+minutes books, forms and returns filed and other records
+maintained by the Company and also the information
+provided by the Company, its officers, agents and
+authorised representatives during the conduct of secretarial
+audit, we hereby report that in our opinion, the Company
+has, during the audit period covering the financial year
+ended on 31st March 2020, complied with the statutory
+provisions listed hereunder and also that the Company has
+proper Board-processes and compliance mechanism in place
+to the extent, in the manner and subject to the reporting
+made hereinafter:
+We have examined the books, papers, minutes books,
+forms and returns filed and other records maintained by the
+Company for the financial year ended on 31st March 2020,
+according to the provisions of:
+i.
+The Companies Act, 2013 (the Act) and the rules
+made thereunder;
+ii.
+The Securities Contracts (Regulation) Act, 1956
+('SCRA') and the rules made thereunder;
+iii.
+The Depositories Act, 1996 and the Regulations and
+Bye-laws framed thereunder;
+iv. Foreign Exchange Management Act, 1999 and the
+rules and regulations made thereunder to the extent
+of Foreign Direct Investment, Overseas Direct
+Investment and External Commercial Borrowings;
+V.
+We further report that:
+The Board of Directors of the Company is duly
+constituted with proper balance of Executive
+Directors, Non-Executive Directors, Independent
+Directors and Woman Director. The changes
+in the composition of the Board of Directors
+that took place during the period under review
+were carried out in compliance with the
+provisions of the Act.
+<56
+5.
+1.
+Maintenance of secretarial records is the responsibility
+of the management of the Company. Our responsibility
+is to express an opinion on these secretarial records
+based on our audit.
+6.
+2.
+3.
+4.
+We have followed the audit practices and processes as
+were appropriate to obtain reasonable assurance about
+the correctness of the contents of the Secretarial
+records. The verification was done on test basis to
+ensure that correct facts are reflected in secretarial
+records. We believe that the processes and practices
+we followed provide a reasonable basis for our opinion.
+We have not verified the correctness and
+appropriateness of financial records and Books of
+Accounts of the Company.
+Wherever required, we have obtained the
+Management representation about the
+compliance of laws, rules and regulations and
+happening of events etc.
+The compliance of the provisions of Corporate
+and other applicable laws, rules, regulations,
+standards is the responsibility of management.
+Our examination was limited to the verification of
+procedure on test basis.
+The Secretarial Audit report is neither an assurance
+as to the future viability of the Company nor of the
+efficacy or effectiveness with which the management
+has conducted the affairs of the Company.
+For KJB & CO LLP,
+Practicing Company Secretaries
+Alpeshkumar Panchal
+Partner
+Mem No. 49008
+C. P. No. 20120
+(c) Profits in lieu of salary under section 17(3) Income tax Act, 1961
+UDIN: A049008B000288381
+Our report of even date is to be read along with this letter.
+Statutory Reports
+Sun Pharmaceutical Industries Limited,
+Vadodara, Gujarat.
+To,
+The Transformation Journey
+Annual Report 2019-20
+2.
+3.
+Adequate notice of at least seven days was given
+to all directors to schedule the Board Meetings
+and Meetings of Committees except in one case
+where the meeting was held on a shorter notice.
+Agenda and detailed notes on agenda were sent
+in advance in adequate time before the meetings
+and a system exists for Directors for seeking and
+obtaining further information and clarifications
+on the agenda items before the meeting and for
+meaningful participation at the meeting.
+On verification of minutes, we have not found any
+dissent/disagreement on any of the agenda items
+discussed in the Board and Committee meetings
+from any of the Directors and all the decisions are
+carried through.
+Based on the information received and records
+maintained, we further report that there are adequate
+systems and processes in the Company commensurate
+with the size and operations of the Company to
+monitor and ensure compliance with applicable laws,
+rules, regulations and guidelines.
+We further report that, having regard to the
+compliance system prevailing in the Company and on
+examination of the relevant documents and records in
+pursuance thereof, on the basis of the representations
+made by the respective plant heads of R&D centers,
+the Company has identified and complied with the
+following laws applicable to the Company:
+• Drugs and Cosmetics Act, 1940 and rules
+made thereunder;
+• Factories Act, 1948.
+We further report that, during the period under
+review, the Board of Directors had approved the
+Buy-back by the Company of its equity shares of 1/-
+each from the Open Market through stock exchange
+mechanism as prescribed under the SEBI (Buy-back of
+Securities) Regulations, 2018 at a price not exceeding
+*425/- per equity share for an aggregate amount of
+*1,700 Crores. The said Buy-back process commenced
+from March 26, 2020.
+Note: We relied on the representation made to us by the
+management wherever required due to several restrictions
+imposed by the Central and State government on the travel,
+movement and transportation considering public health and
+safety measures due to Covid-19, which had impact on the audit
+assessment due to limited access to information / documents/
+data as required for audit assessment.
+For KJB & CO LLP,
+Practicing Company Secretaries
+Alpeshkumar Panchal
+Partner
+Mem No. 49008
+-
+C.P. No. 20120
+UDIN: A049008B000288381
+Date: 27th May 2020
+Place: Mumbai.
+This report is to be read with our letter of even date
+which is annexed as Annexure 1 and forms an integral
+part of this report
+Annexure 1 to Secretarial Audit Report
+The Members,
+55 >>>
+1.
+Israel Makov
+Chairman
+Ratio of the remuneration of each director to the median remuneration of the employees of the Company for the
+FY20 and the percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary
+during the FY20:
+Name of Director and Key Managerial
+Designation
+Directors:
+Mr. Israel Makov
+Mr. Dilip S. Shanghvi
+Mr. Sailesh T. Desai
+Non-executive Chairman
+Managing Director
+Whole-time Director
+Mr. Kalyanasundaram Subramanian (b)
+Whole-time Director
+Mr. Sudhir V. Valia
+Non-executive and
+Ms. Rekha Sethi
+Mr. Vivek Chaand Sehgal
+Mr. Gautam Doshi
+Mr. C.S. Muralidharan
+Key Managerial Personnel:
+Mr. Sunil Ajmera
+Non-Independent Director
+Non-executive Independent Director
+Non-executive Independent Director
+Non-executive Independent Director
+Chief Financial Officer
+(i)
+Company Secretary
+Information required under Section 197 of the Act Read with Rule 5(1) of the Companies (Appointment and
+Remuneration of Managerial Personnel) Rules, 2014.
+Board's Report
+Stock Option
+3.
+(DIN: 05299764)
+Sweat Equity
+4.
+Commission as % of profit
+5.
+Others, please specify
+14.01
+38.89
+52.90
+Total
+VII. PENALTIES / PUNISHMENT / COMPUNDING OF OFFENCES AGAINST COMPANY, DIRECTORS
+AND OTHER OFFICERS IN DEFAULT: NIL
+Place: Israel
+Date: May 27, 2020
+For and on behalf of the Board of Directors
+Israel Makov
+Chairman
+(DIN: 05299764)
+53 >>>
+Statutory Reports
+Annexure - C
+Ratio of remuneration (a)
+<<54
+of each Director to
+median remuneration
+(a) Remuneration to Non-Executive Directors consists only of sitting fees and is based on the number of meetings attended during the year.
+No commission was paid to Non-Executive Directors for the year 2019-20.
+(b) Mr. Kalyanasundaram Subramanian was not paid any remuneration from the Company as Whole-time Director upto July 03, 2019. Due
+to change in his roles and responsibilities, the Nomination and Remuneration Committee and Board of Directors approved payment
+of remuneration to Mr. Kalyanasundaram Subramanian w.e.f. July 04, 2019 till the remaining term of his appointment upto February
+13, 2021 and his remuneration was also approved by the members at 27th Annual General Meeting of the Company held on August
+28, 2019. Since no remuneration was paid to him in the FY19, the percentage increase/decrease in remuneration cannot be calculated.
+Further, the ratio mentioned in the above table has been calculated on the basis of remuneration paid to him from July 04, 2019 to
+March 31, 2020.
+Note 1:
+The increase in remuneration of Mr. Dilip Shanghvi for the FY20 and FY19 are not comparable as the salary drawn by him in the FY19 was
+*1/- (excluding notional perquisite amount of *262,800).
+Note 2:
+The increase of 14.7% in remuneration of Mr. Sailesh Desai is calculated on the basis of Form 16 for 2019-20 as compared to 2018-19 and is
+due to the LTA of previous year paid in the current year and increase in the notional value of perquisite as per Income Tax Act, however the
+actual increase in his total remuneration for the year 2019-20 was 9.0%.
+Note 3:
+The increase in remuneration of Mr. Sudhir V. Valia for the FY20 and FY19 are not comparable as the salary drawn by him in the FY19 was
+*1/- (excluding notional perquisite amount of ₹79,200) Also in 2019-20 Mr. Sudhir Valia had stepped down from the position of Whole-time
+Director of the Company with effect from May 29, 2019 and he became a Non-Executive Non-Independent Director of the Company
+thereafter. The amount of *60,547,876 paid to him at the time of full and final settlement in 2019-20 includes 15,054,320 paid towards PL
+encashment and *38,891,827 paid towards Gratuity (which is being reimbursed by LIC as per policy). Further, an amount of $900,000 was
+paid to him towards sitting fees for the meetings attended by him as Non-executive director.
+The increase of 18.5% in remuneration of Mr. C.S. Muralidharan is calculated on the basis of Form 16 for 2019-20 as compared to 2018-19
+and is due to Bonus/LTA of the previous year paid in the current year, however the actual increase in his total remuneration for the year
+2019-20 was 7.1%
+The Transformation Journey
+Annual Report 2019-20
+ii)
+The percentage increase in the median remuneration of employees in the FY20 (Median -2020/Median 2019): 4.91%
+(iii) The number of permanent employees on the rolls of the Company as on March 31, 2020: 17759
+(iv) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last
+financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof
+and point out if there are any exceptional circumstances for increase in the managerial remuneration:
+(v)
+Average percentage increase made in the salaries of employees other than the managerial personnel in the financial
+year ending March 31, 2020 was approximately 10.26%. Considering the explanation given under Note 1, 2, and 3 to
+point no. (i) above, the average increase in the managerial personnel remuneration was 9.0%, which is the percentage
+increase for Mr. Sailesh Desai, Whole-time Director. Further, the current year's managerial remuneration when
+compared to the last full drawn remuneration i.e. for the year 2017-18, the average increase would also be 9.0%.
+It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial
+Personnel and other Employees.
+(All the details of remuneration given above are as per Form 16 as per Income Tax Act, and the ratios are calculated
+on that basis.)
+Place: Israel
+Date: May 27, 2020
+For and on behalf of the Board of Directors
+(Refer Note 4)
+2.2
+Not Applicable
+Note 4:
+(Refer Note 1)
+Increase/ (decrease) in
+Remuneration(a)
+18.5
+in the FY20
+(in percentage)
+1.98
+11.1
+64.65
+27.81
+14.7
+(Refer Note 2)
+NA
+87.21
+121.86
+(Refer Note 3)
+3.77
+26.7
+1.19
+0.0
+4.16
+61.5
+Not Applicable
+(Refer Note 3)
+of employees
+<68
+3
+67 >>
+Statutory Reports
+6
+Attendance particulars
+for the year ended March 31, 2020
+5
+No. of other Directorships and Committee
+Memberships / Chairmanships
+Corporate Governance Report
+Yes
+3
+6
+Ms. Rekha Sethi
+2
+No
+2
+6
+Mr. Kalyanasundaram Subramanian
+Yes
+as of March 31, 2020¹
+6
+Name of the Director
+1
+Board Meetings
+6
+1 The above number of other directorships does not include Directorships, Committee Memberships and Committee Chairmanships in
+Private Limited, Foreign and Section 8 Companies.
+2 The Committee Memberships and Chairmanships in other Companies include Memberships and Chairmanships of Audit and Stakeholders'
+Relationship Committee only.
+1
+1
+Memberships² Chairmanships²
+Committee
+Committee
+3 Mr. Sudhir Valia stepped down from the position of Whole-time Director of the Company to Non-Executive Director of the Company, with
+effect from May 29, 2019. He continues to be a Non-Promoter, Non-Executive and Non-Independent Director of the Company.
+2
+5
+Number of
+Yes
+5
+6
+6
+6
+Notes:
+Mr. Gautam Doshi
+Mr. Vivek Chaand Sehgal
+Directorships
+Other
+Last AGM held
+August 28, 2019
+Number of
+Board Meetings
+attended
+Entitled to
+attend
+No
+Mr. Sailesh T. Desai
+The present strength of the Board of Directors of your Company is eight Directors.
+3
+Attendance particulars
+for the year ended March 31, 2020
+May 28, 2019; August 13, 2019; August 28, 2019; November 7, 2019, February 06, 2020 and March 17, 2020.
+Number of Board meetings the Directors were entitled to attend, attendance of each Director at the Board meetings
+and at the last Annual General Meeting (AGM), and number of other Directorships and Chairmanships/Memberships
+of Committee of each Director for the year under review, is given below:
+Number of Board meetings held during the year ended March 31, 2020 and the dates on which held:
+Six Board meetings were held during the year. The dates on which the meetings were held during the year ended
+March 31, 2020 are as follows:
+*Mr. Sudhir Valia stepped down from the position of Whole-time Director of the Company to Non-Executive Director of the Company, with
+effect from May 29, 2019. He continues to be a Non-Promoter, Non-Executive and Non-Independent Director of the Company. He is part of
+Promoter Group but not a promoter.
+Brother-in-law of Mr. Dilip S. Shanghvi
+Brother-in-law of Mr. Sudhir V. Valia
+Inter-se Relationship between Directors
+Mr. Gautam Doshi
+Mr. Vivek Chaand Sehgal
+Ms. Rekha Sethi
+Mr. Dilip S. Shanghvi (Managing Director)
+Mr. Sailesh T. Desai (Whole-time Director)
+Mr. Kalyanasundaram Subramanian
+(Whole-time Director)
+No. of other Directorships and Committee
+Memberships / Chairmanships
+Mr. Sudhir V. Valia*
+Name of the Directors
+Non-Executive Independent Directors
+Promoter Executive Director
+Non-Promoter Executive Directors
+Non-Promoter Non-Executive and Non
+Independent Directors
+Category of Directors
+Composition and category of Directors is as follows:
+Sun Pharmaceutical Industries Limited is committed to learn and adopt the best practices of Corporate Governance.
+2. BOARD OF DIRECTORS
+1. COMPANY'S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE
+Names of the Indian listed entities where the Directors of the Company hold Directorship and the category
+of directorship as on March 31, 2020:
+Sun Pharmaceutical Industries Limited's philosophy envisages reaching people touching lives globally by following
+the core values of the Company viz Quality, Reliability, Consistency, Trust, Humility, Integrity, Passion and Innovation
+which are also a way of life at the Company. These values form a base of the Corporate Governance practices of
+the Company. The Company ensures to work by these principles in all its interactions with stakeholders, including
+shareholders, employees, customers, consumers, suppliers and statutory authorities.
+Mr. Israel Makov (Chairman)
+1
+as of March 31, 2020¹
+Number of
+Board Meetings
+5
+Yes
+6
+6
+Mr. Sudhir V. Valia³
+1
+Yes
+6
+6
+Yes
+Name of the Director
+6
+Mr. Dilip S. Shanghvi
+Mr. Israel Makov
+Committee
+Memberships² Chairmanships²
+Committee
+Directorships
+Other
+Last AGM held
+August 28, 2019
+Number of
+Board Meetings
+attended
+Entitled to
+attend
+6
+Name of the Director
+Yes
+Mr. Vivek Chaand Sehgal
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Governance
+Yes
+Yes
+Yes
+Legal
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Industry Knowledge (Pharma
+Yes
+Yes
+Yes
+As far as Skills namely Strategic Thinking/ Planning Skills, Problem Solving Skills, Analytical Skills, Decision Making
+Skills and Leadership Skills; and Behavioural Traits namely Integrity, Genuine interest, Interpersonal skills /
+communication and Active Participation are concerned, all the Directors of the Company possess them.
+In compliance with Regulation 34(3) read with Schedule V of the Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), as amended from time to time the
+Company submits the Corporate Governance Report for the year ended March 31, 2020.
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+General Management
+Finance & Accounts
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Risk Management
+Industry)
+Yes
+Yes
+Yes
+In the field of:
+one or more fields
+Yes
+Genuine interest
+Behavioural Traits
+Integrity
+Strategic Thinking/ Planning Skills
+Problem Solving Skills
+Skills
+General Management
+Risk Management
+Industry Knowledge
+Governance
+Legal
+Finance & Accounts
+Analytical Skills
+Specialisation / Expertise
+In terms of requirement of Listing Regulations, the Board has identified the core skills/expertise/competencies of the
+Directors, as given below:
+Non-Executive & Non-Independent Chairman
+Independent Director
+Non Executive & Non Independent Director
+Independent Director
+Chairman and Managing Director
+Category of Directorship
+Motherson Sumi Systems Ltd
+Spencer's Retail Limited
+Sun Pharma Advanced Research Company Ltd
+Sun Pharma Advanced Research Company Ltd
+CESC Ltd
+Other Indian Listed entities in which they hold
+Directorship
+Knowledge
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Ms. Rekha Sethi
+Decision Making Skills
+Leadership Skills
+The skills/expertise/knowledge area of the Directors are given below:
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Specialisation / Expertise in
+KNOWLEDGE
+Rekha Vivek Chaand
+Sethi
+Sehgal
+Interpersonal skills / communication
+Active Participation
+Doshi
+Valia
+Sudhir
+Subramanian
+Sailesh Kalyanasundaram
+Desai
+Dilip
+Shanghvi
+Makov
+Israel
+Knowledge
+Skill set/Area of expertise/
+Whether the skill set/area of expertise/knowledge is possessed by the Director of the Company
+Gautam
+Corporate Governance
+51 52.7
+The Transformation Journey
+of X-ray Centre in a Charitable Hospital for
+treatment of underprivileged community. The
+project has benefitted more than 2000 poor and
+deprived patients in the area.
+Support in Establishment of X-Ray Centre: The
+project was implemented at Vadodara (Gujarat).
+The Company has supported establishment
+Kidney Dialysis treatment: The Company
+has supported Kidney dialysis treatment of
+poor patients. During the year, the project
+has benefitted 204 patients from Gujarat
+and Maharashtra.
+b)
+a)
+The Company has been implementing different
+healthcare programmes for benefit towards
+humanitarian causes. Following key projects were
+identified and implemented in different areas of
+Maharashtra, Gujarat and Punjab:
+8. HEALTHCARE PROGRAMME:
+The programme involved an investment of *1.16
+Million during the FY 19-20.
+- Plantation of saplings and its maintenance work
+at Vadodara (Gujarat), Ahmednagar (Maharashtra),
+Panoli (Gujarat) and Madurantakam (Tamilnadu) to
+ensure environment conservation.
+- Awareness generation was conducted in Mohali
+(Punjab) and Paonta Sahib (Himachal Pradesh) under
+"Say No to Plastic" and cloth and jute bags were
+distributed in the community.
+Environment Conservation Programme, focused
+upon Greenbelt development towards environment
+sustainability and awareness generation in schools
+and communities for sensitizing people towards
+importance and conservation of environment.
+The following activities were implemented under
+Environment Conservation Programme:
+ENVIRONMENT CONSERVATION
+PROGRAMME:
+benefitted 714 girl students with an investment of
+*1.87 Million during the FY 19-20.
+7.
+The main objective of the project was:
+Sun Pharma believes that quality education can
+happen in a clean and healthy environment. The
+'Swachh Bharat, Swachh Vidyalaya Abhiyan', launched
+by the Government aims to improve hygiene and
+sanitation across schools through improved water and
+sanitation facilities. In this financial year, company has
+constructed Toilet Block facilities for girl students in
+rural schools.
+SCHOOL TOILET CONSTRUCTION PROJECT:
+RURAL DEVELOPMENT PROGRAMME:
+Sun Pharma has been working towards development
+of basic infrastructural development in rural areas
+under Rural Development Programme. This project has
+benefitted neighbouring communities through various
+projects such as Construction of Mini water tanks,
+Installation of solar street lights, Construction of cattle
+trough and cloth washing station, Maintenance of
+cricket playground, Construction of Anganwadi center,
+Setting-up Traffic Blinkers, Construction of community
+hall. 1070 Households have been benefitted under
+various Infrastructure development work in villages.
+Furthermore, 165 women & children have been
+benefitted through Anganwadi Development Project
+under this programme. The company has invested
+*2.21 Million during the FY 19-20.
+The project focused upon promotion and awareness
+of latest medical and pharmaceutical research
+outcomes, subject updates and all related development
+focused upon National Public Health Concerns for
+humanitarian causes and benefits by organising
+seminar, symposia and rewarding excellence in
+pharmaceutical research. During FY 19-20, 153 people
+were benefitted under this programme. The company
+has spent *2.55 Million during the FY 19-20.
+PROMOTION OF SCIENTIFIC MEDICAL
+& PHARMA RESEARCH OUTCOMES FOR
+PUBLIC HEALTH IMPROVEMENT:
+benefitted 100 socio-economically disadvantaged
+patients (up to March end) all over India with leading
+cancer specialists at Tata Memorial Center and other
+expert centers through the investment of $4.25 Million
+during FY 19-20.
+c)
+-
+To inculcate healthy and hygienic behaviour
+in girl students.
+Blood Donation: Support to local blood bank
+society at Vadodara, Gujarat for promoting blood
+donation for people in need.
+Keeping in view that one in every four school-going
+student is suffering from refractive error and has some
+kind of vision problem, consequently, Children Eye
+Health Initiative project was initiated to implement in
+identified schools. The main focus of the project is to
+conduct basic eye health screening of students and
+providing them free spectacles to students suffering
+with any kind of refractive error. During the last
+financial year, screening of total 1786 students was
+completed, out of which 602 students were identified
+with low vision and were provided with ready-made
+and tailor-made spectacles. The project involves an
+investment of *0.13 Million during the FY 19-20.
+12. CHILDREN EYE HEALTH INITIATIVE
+PROJECT:
+The Projects have been supported in view of water
+scarcity in our rural areas. The main objective of the
+project is to harvest rain water for onward use by the
+community. Sun Pharma has facilitated development
+of rain water harvesting system in all public buildings
+in the Karunkuzhi Panchayat at Madurantakam
+(Tamilnadu) by providing plastic drums to install cost
+effective RWH system. A potential water reservoir was
+cleaned for capacity enhancement and at Karkhadi
+(Gujarat). The project has benefitted more than 10,000
+households and community at large with an investment
+of 0.31 Million during the FY 19-20.
+11. WATER CONSERVATION PROJECT:
+Sun Pharma has been supporting towards provision of
+safe and potable drinking water to reduce waterborne
+diseases and also to bring about health improvement
+in communities living in rural areas of Ahmednagar
+(Maharashtra), Toansa (Punjab) and Paonta (Himachal
+Pradesh). The Company has provided water storage
+tanks at Ahmednagar, whereas, deep bore-well based
+drinking water supply system is being maintained at
+Toansa throughout the year. Further, drinking water
+supply system has been renovated and restored at
+Paonta (Himachal Pradesh) under this programme.
+The project is benefitting 2263 households with an
+investment of 0.32 Million during the FY 19-20.
+10. DRINKING WATER PROJECT:
+Sun Pharma has implemented this project with an
+objective to promote better health, hygiene and
+improve quality of life of rural communities. The
+main focus of this project is to construct Individual
+household toilet blocks and to conduct IEC activities
+regarding awareness of good sanitation practices.
+During last five years, Sun Pharma has facilitated
+construction of more than 1800 Individual Toilet
+Blocks and mobilised Local Gram Panchayat to extend
+water facilities to use these toilets in proper manner.
+With the support of all local bodies and Government
+Authorities, Sun Pharma has made 13 villages ODF
+during last 5 years. During the financial year 19-20,
+the Company has benefitted 60 rural households from
+Madurantakam, Tamilnadu by investing *0.49 Million in
+this programme.
+SANITATION PROGRAMME:
+The project has benefitted 6530 beneficiaries in last
+financial year. During the FY 19-20, the Company
+has invested 0.73 Million for the implementation
+of various healthcare projects and awareness
+generation programme.
+9.
+Annual Report 2019-20
+Board's Report
+63 »
+Maintenance of Subsidiary Health Centre:
+The Company has renovated and maintaining
+a dispensary in Toansa (Punjab), which covers
+population of nearby three villages Bholewal,
+Toansa and Railmajra in Punjab. The project
+aims at delivering primary healthcare services,
+provision of medicines, medical camps and
+awareness generation programmes.
+The project was implemented in five Government
+schools based at Halol (Gujarat) and one Govt. School
+based at Ahmednagar (Maharashtra). The project has
+- To improve hygiene and ensure safety of girl student.
+-
+To create awareness regarding use of toilets by
+promoting good sanitation practices, etc.
+-
+d)
+To reduce the drop-out rate among girl students.
+-
+Statutory Reports
+6.
+5.
+4.
+30.2
+Ankleshwar ⚫
+Dewas⚫
+Paonta Sahib ⚫
+49.7
+47.7
+51.4
+54.3 53.9
+53.2
+56.5
+29.2
+56.5
+56.5
+51.153.2
+58
+58
+All Figures are in percentage
+It is one of project components in which substantial achievement was seen due to collective efforts by Mobile Healthcare
+Team at ground level. Project intervention on adolescent anaemia was addressed to by distribution of IFA (Iron and Folic
+Acid) amongst adolescent girls aged 10-19 years, which has resulted in reducing adolescent anaemia in our project areas at
+almost all locations.
+Adolescent Anemia:
+Statutory Reports
+21.2
+The Independent directors fulfill the conditions specified in the Listing Regulations and are independent of
+the management.
+56.5
+13. DISASTER RELIEF PROGRAMME (COVID-19):
+The outbreak of Coronavirus disease has been
+declared as world pandemic by WHO in March '20.
+Therefore, creating awareness amongst local people
+to adapt measures to prevent spread of coronavirus
+became key priority of the Company. Along with
+awareness generation programme, the Company
+has distributed food packets in rural communities of
+Madurantakam, Tamilnadu. The Company has invested
+*0.06 Million during the FY 19-20.
+Panoli •
+Malanpur •
+The Transformation Journey
+Board's Report
+Sun Pharma has sponsored 500 cancer patients to
+receive expert opinions online from Tata Memorial
+Centre-Navya. This is an Expert Opinion Service,
+which is an online platform to provide a second opinion
+of oncologists to cancer patients with an objective
+to provide quick and early treatment plans for the
+individuals which can significantly improve the health
+outcome. These patients would not have otherwise
+had access to, or been able to afford, high-quality
+expert treatment plans to improve their chances
+of cure. Navya Network provides expert opinions
+to cancer patient with an objective to impart low
+cost and effective treatment decisions while saving
+healthcare costs of the individual. The project has
+3. NAVYA ONLINE EXPERT OPINION SERVICE
+PROJECT:
+of 5.10 Million.
+The project has benefitted 4625 Students, 150 other
+beneficiaries and community with an investment
+- Infrastructure up-gradation in various Government
+schools of Halol, Panoli, Ahmednagar, Dewas,
+and Madurantakam.
+- Skill development and computer training to the
+women, girls and youth at Malanpur, Madhya Pradesh
+and Vadodara, Gujarat.
+- Remedial Classes for Students of 12th
+std., Halol, Gujarat
+- Digital Classroom in 4 Government schools
+of Halol and Karkhadi in Gujarat and
+Madurantakam in Tamilnadu.
+Karkhadi ⚫
+- Installation of solar roof-top grid in Govt. school at
+Ahmednagar (Maharashtra)
+Sun Pharma has initiated Education Programme to
+improve the educational standards in identified schools
+under the Model School Development Project. This is
+a rolling-year project to develop identified schools as
+a Model School and to upgrade educational facilities
+such as Infrastructure Up-gradation, digital classroom,
+Provision of potable drinking water for the students,
+distribution of stationary items, book donation,
+celebration of school-based activities etc. Main
+Objective is to inculcate interest amongst students to
+increase attendance rate and reducing drop-out rates
+in schools. The following projects were carried out
+during FY 19-20.
+2. EDUCATION PROGRAMME:
+Source: Sun Pharma Community Healthcare Society Data 2019-20 and Latest NFHS- 4 'National Family Health Survey-4.
+State Data NFHS-4
+SPCHS Data
+8.9
+Ahmednagar ⚫
+Halol ⚫
+MKM •
+21
+- Construction of two school classrooms at
+Ahmednagar (Maharashtra)
+Annual Report 2019-20
+CSR Awards and Accolades received during the
+year:
+2.
+Novel compact dosage forms having differentiation
+with regards to improved stability and/or reduced
+pharmacokinetic variability have been developed for
+the Indian market. Stable liquid oral formulations of
+labile products are also being developed.
+Process robustness has been implemented for wide
+range of products with the objective to reduce cost
+and increase in-process capability.
+and powder processing techniques like ultrasonic
+crystallisation for achieving required particle size
+and physical characteristics for formulation, plug
+flow reactors, advanced flow reactors for continuous
+process and safety related studies using reaction
+calorimetry and other advanced process engineering
+tools. Product Life Cycle management has been
+undertaken for key products. Backward integration is a
+key strategic objective and many of our products enjoy
+the benefit of this backward integration.
+Board's Report
+<66
+2.
+Statutory Reports
+65 >>>
+There has been thrust on the development of novel
+technologies like use of green reagents for chemical
+transformations in API synthesis, use of PAT tools in
+process development, and advanced crystallisation
+The Company continues to invest on R&D, both as
+revenue expenses as well as capital investments.
+This spending is directed at developing complex
+products, specialty products, generic products, and
+API technologies that are complex and may require
+dedicated manufacturing blocks. Investments have
+been made in employing scientifically skilled and
+experienced manpower, adding technologically
+advanced and latest equipment, sponsored
+research and in accessing world class consultants to
+continuously upgrade the research understanding of
+the scientific team in the technologies and therapy
+areas of our interest.
+Efforts in brief, made towards technology absorption,
+adaptation and innovation
+1.
+(B) Technology Absorption, Adaptation and Innovation
+9,620.8
+9.8%
+8.6%
+10,202.9
+9,029.9
+590.9
+305.4
+9,897.5
+Year ended
+March 31, 2019
+(in Million)
+Benefits derived as a result of the above efforts
+e.g. product improvement, cost reduction, product
+development, import substitution
+(a) Offers complete basket of products under
+chronic therapeutic classes. Many products are
+in the pipeline for future introduction in India,
+emerging markets, as well as US and European
+generic market. The Company has developed an
+ability to challenge patents in the US market, and
+earn exclusivity.
+(b) For FY20, 67 formulations were developed
+and filed from our R&D locations for the Indian
+and regulated markets and 183 dossiers were
+submitted for filing in emerging markets. The
+Company has also filed 100+ drug master files
+across various markets during the year.
+(DIN: 05299764)
+Chairman
+Israel Makov
+Date: May 27, 2020
+Place: Israel
+For and on behalf of the Board of Directors
+66,025.4
+38,610.2
+74,218.7
+27,963.9
+Year ended
+March 31, 2019
+Year ended
+March 31, 2020
+Year ended
+March 31, 2020
+(in Million)
+C) Foreign Exchange Earnings and Outgo
+Your company has not imported technology during
+the last 5 years reckoned from the beginning of the
+financial year.
+(g) Clinical studies of some products (complex and
+difficult to formulate) have been carried out at
+our in-house clinical pharmacology units. This has
+helped to maintain R&D quality and regulatory
+compliance with significantly reduced cost.
+The Company has benefited from reduction in
+cost due to import substitution and increased
+revenue through higher exports.
+(f)
+(e) We are among the few selected companies that
+have set up completely integrated manufacturing
+capability for the production of anticancer,
+hormones, peptide, immunosuppressant and
+steroidal drugs.
+(d) Offers technologically advanced differentiated
+products which are convenient and safe for
+administration to patients.
+Not dependent on imported technology, can make
+high-end products available at competitive prices
+by using indigenously developed manufacturing
+processes and formulation technologies.
+(c)
+3.
+Earnings
+Outgo
+Total Turnover
+expenditure as % of
+Total R&D
+• Use of Heat pump instead of steam for hot
+water generation.
+• Improve steam to fuel ratio by condensate recovery,
+flash recovery, boiler blow down heat recovery &
+steam trap uptime.
+• New solid fuel fired boiler installed instead of
+fossil fuel boiler.
+1. Steps taken or impact on Conservation of Energy
+A. CONSERVATION OF ENERGY
+Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo required under the
+Companies (Accounts) Rules, 2014
+Annexure - G
+Annual Report 2019-20
+The Transformation Journey
+<64
+• Hot water generation system for process is
+changed to plate heat exchangers from direct
+live steam heating.
+Sun Pharma won "India Pharma Corporate Social
+Responsibility Programme of the year Award" at
+Gandhinagar on March 5, 2020.
+India Pharma Best Corporate Social Responsibility
+Programme of the year Award:
+Sun Pharma was conferred upon "Best CSR
+Award" under large scale CSR category at Amity
+CSR Conclave 2020.
+February 29, 2020
+Best CSR Award:
+Sun Pharma was conferred upon "Excellent CSR
+Interface Award" at 2nd National CSR Leadership
+Summit and Awards 2019 organised by CMAI.
+CSR Leadership Award:
+October 15, 2019
+Sun Pharma's CSR project, Mobile Healthcare
+Unit was recognised as the Best Public Health
+Initiative by ACEF Asian Leadership Forum.
+ACEF Asian Leadership Forum and Awards:
+September 28, 2019
+4.
+3.
+March 5, 2020
+1.
+• Power factor is improved at various sites.
+• In Gurgaon plant -Power is partly sourced
+from rooftop solar.
+Total
+Capital
+Revenue
+• Conventional fuel like furnace oil/high speed
+diesel are replaced with biomass briquettes
+(Carbon Neutral) fuel for Steam generation at
+various locations.
+Steps taken by the Company for utilising alternate
+sources of energy
+• Synchronisation of electrical power distribution
+system for optimum utilisation of resources like,
+Transformers, Diesel Generators, etc.
+• Auto condenser tube cleaning by automised process
+to optimise the Chiller condenser cleaning for
+improved efficiency.
+• Ejectors are replaced with dry vacuum pumps to
+optimise the impact on environmental load.
+• Designed high static pumps are optimised to
+current capacities there by substantial saving
+in pumping cost.
+• High capacity (above 20 KW) continuously
+operated motors are replaced with energy
+efficient IE3 motors.
+• Replaced reciprocating air compressor by energy
+efficient screw compressor.
+• In MKM Chennai - Power is partly sourced from
+the wind mills.
+• Installed closed loop energy efficient pumps instead
+of open loop pumps.
+2.
+Expenditure on R&D -
+Research and Development
+(A)
+TECHNOLOGY ABSORPTION
+Capital investment of 120 Million has been made on
+energy conservation equipments.
+B.
+Capital investment on energy conservation
+equipments
+3.
+• In Dewas plant - Power is partly sourced
+from solar energy.
+• Contract demand is reduced at various sites.
+17.4
+Gujarat), Karkhadi (Vadodara,
+1.93 Directly
+No. (i)
+Drinking
+Ahmednagar (Ahmednagar,
+0.88
+4.25 Implementing
+Agency: Tata
+under Item
+0.00
+4.25
+0.00
+4.25
+Healthcare
+Navya Online
+Expert Opinion
+3
+Himachal Pradesh) and Toansa (SBS
+Nagar, Punjab)
+Gujarat), Paonta Sahib (Sirmour,
+Haveli), Halol (Panchmahal,
+Silvassa (UT of Dadra and Nagar
+Ankleshwar (Bharuch, Gujarat),
+Mumbai (Mumbai, Maharashtra)
+0.49
+0.57
+Madurantakam (Kanchipuram,
+Tamilnadu)
+Mohali (SAS Nagar, Punjab) and
+Vadodara (Vadodara, Gujarat)
+8
+Healthcare
+Healthcare
+Toansa (SBS Nagar, Punjab),
+0.73
+0.68
+0.05
+1.78 1) Directly
+Programme
+under Item
+No. (i)
+Madurantakam (Kanchipuram,
+Tamilnadu), Vadodara (Vadodara,
+Gujarat) and Dadra (UT of Dadra
+and Nagar Haveli)
+2) Implementing
+Agency: (a) Rogi
+Kalyan Samiti,
+(b) Human Welfare
+Charitable Trust
+(c) Citizen Blood
+Donation Society
+14.31 Directly
+9 Sanitation
+Programme
+10 Drinking Water
+Programme
+Healthcare
+under Item
+Karkhadi (Vadodara, Gujarat),
+Dewas (Dewas, Madhya Pradesh),
+Malanpur (Bhind, Madhya Pradesh),
+Vadodara (Vadodara, Gujarat),
+Cumulative
+(in Million)
+0.81
+23.72
+(Direct
+Expenditure)
+wise
+33.32
+Programme
+0.32
+0.00
+0.94 Directly
+Water under
+Item No. (i)
+Maharashtra), Toansa (SBS Nagar,
+Punjab), and Paonta Sahib (Sirmour,
+Himachal Pradesh)
+11 Water
+Conservation
+Project
+Environment
+under Item
+Karkhadi (Vadodara, Gujarat) and
+0.31
+Expenditure Amount spent
+Sahib (Sirmour, Himachal Pradesh),
+upto to the Directly or through
+reporting implementing agency
+115.55 Implementing
+SVADES
+Agency:
+(Kanchipuram, Tamilnadu),
+Gujarat), Madurantakam
+15.86 Directly and
+Implementing
+Maharashtra), Panoli (Bharuch,
+under Item
+No.(ii)
+0.64
+4.46
+5.04
+Ahmednagar (Ahmednagar,
+Education
+Education
+Programme
+2
+(Kanchipuram, Tamilnadu)
+Healthcare
+Society
+Community
+Sun Pharma
+Agency:
+period
+4.11 Directly
+0.00
+1.16
+Outcomes for
+Public Health
+Amount
+Outlay
+Amount
+spent on the
+(Budget)
+Project or
+projects or Overhead
+programmes Expenditure
+Programme
+wise
+6.00
+(Direct
+Expenditure)
+2.55
+0.00
+Cumulative
+Board's Report
+(in Million)
+Expenditure Amount spent
+upto to the Directly or through
+reporting implementing agency
+period
+Pharma Research
+2.55 Implementing
+No.(ii)
+under Item
+Memorial Centre
+59 >>>
+Statutory Reports
+Projects or Programmes
+CSR Project
+Sector in which
+1. Local Area or other
+Sr.
+or Activity
+No.
+Identified
+the project is
+covered
+2. Specify the State and District
+where projects or programmes were
+undertaken
+4
+Promotion
+Education
+New Delhi (Delhi)
+of Scientific
+Medical &
+0.31
+Agency:
+Improvement
+under Item
+Maharashtra), and Halol
+Project
+No. (i)
+(Panchmahal, Gujarat)
+6.72 1) Directly
+2) Implementing
+Agency:
+(a) Gramin Vikas
+Trust and (b) SVADES
+1.87 1) Directly
+2) Implementing
+Agency:
+Anarde Foundation
+7
+Environment
+Conservation
+Programme
+Environment
+under Item
+No.(iv)
+Panoli (Bharuch, Gujarat), Paonta
+1.54
+Construction
+Sun Pharma Science
+Foundation
+0.00
+1.89
+5
+Rural
+Rural
+Madurantakam (Kanchipuram,
+1.83
+1.80
+0.41
+Development
+Development
+Tamilnadu), Halol (Panchmahal,
+Programme
+Project under
+Gujarat) and Paonta Sahib (Sirmour,
+Item No. (x)
+Himachal Pradesh)
+6
+School Toilet
+Healthcare
+Ahmednagar (Ahmednagar,
+1.87
+0.00
+Service Project
+Madurantakam (Kanchipuram,
+167
+19
+61 >>>
+<62
+Mohali ⚫
+27.6
+Toansa ⚫
+(%)
+NFHS-4
+41
+Adolescent Anemia
+spent on the
+Outlay
+Amount
+Amount
+projects or Overhead
+programmes Expenditure
+Pradesh) and Madurantakam
+Gujarat), Malanpur (Bhind, Madhya
+Gujarat), Ankleshwar (Bharuch,
+(Budget)
+MMR
+IMR
+Source: NFHS- 4 (National Family Health Survey-4)
+O
+2009
+2010
+2011
+2012
+2013
+2014
+2015
+2016
+2017
+2018
+2019
+2020
+BR
+Source: Sun Pharma Community Healthcare Society Data 2019-20
+Indicators
+Infant Mortality Rate (IMR)
+Maternal Mortality Rate (MMR)
+Birth Rate (BR)
+Madhya Pradesh), Panoli (Bharuch,
+Himachal Pradesh), Dewas (Dewas,
+Punjab), Paonta Sahib (Sirmour,
+Punjab), Toansa (SBS Nagar,
+Mr. Dilip S. Shanghvi, Chairman, Mr. Sudhir V. Valia, Member and
+Ms. Rekha Sethi, Member
+The contents of CSR policy can be accessed through the web link
+http://www.sunpharma.com/policies and details on projects and
+programmes are forming part of this Annual Report
+The Company has identified health, education & livelihood,
+environment protection, water management and disaster relief as
+the areas where assistance is provided on a need-based and case-
+to-case basis. Your Company persisted with participation in such
+activities at the local, grass root level during the year.
+The CSR policy of the Company encompasses its philosophy
+towards Corporate Social Responsibility and lays down the
+guidelines and mechanism for undertaking socially useful
+programmes for welfare & sustainable development of the
+community at large.
+Particulars
+c) Manner in which the amount spent during the Financial year
+b) Amount unspent, if any
+a) Total amount spent for the financial year
+6. Details of CSR spend for the financial year:
+5. Prescribed CSR Expenditure (two percent of the amount as in item
+4 above)
+4. Average net profit of the Company for last three financial years
+3. Composition of the CSR Committee
+2. Reference to the web-link to the CSR policy and projects or
+programmes
+1. A brief outline of the Company's CSR policy, including overview of
+projects or programmes proposed to be undertaken
+Details
+Annual Report on Corporate Social Responsibility (CSR) Activities for the FY20
+Annexure - F
+Annual Report 2019-20
+The Transformation Journey
+1,349.27 Million
+0
+*26.99 Million
+Nil
+Gujarat), Mohali (SAS Nagar,
+Maharashtra), Halol (Panchmahal,
+Ahmednagar (Ahmednagar,
+Healthcare
+under Item
+No.(i)
+Programme
+Healthcare Unit
+Mobile
+1
+2. Specify the State and District
+where projects or programmes were
+undertaken
+the project is
+covered
+Identified
+No.
+or Activity
+Sr.
+1. Local Area or other
+Sector in which
+CSR Project
+Projects or Programmes
+Details given below
+43.71 Million
+No. (i)
+0
+0
+Completed During
+Previous Years
+Sub-total
+41.80
+1.91
+Total
+41.80
+1.91
+171.28
+126.07
+297.35
+The CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives
+and Policy of the Company.
+Place: Mumbai
+Date: May 26, 2020
+<60
+Dilip S. Shanghvi
+Sudhir V. Valia
+Chairman CSR Committee and Managing
+Director
+(DIN: 00005588)
+Member CSR Committee and
+Director
+(DIN: 00005561)
+14 CSR Projects
+The Transformation Journey
+No. (xii)
+0.00
+No.(iv)
+Tamilnadu)
+12 Children Eye
+Health Initiative
+project
+13 Disaster Relief
+Programme
+(Covid-19)
+Healthcare
+Vadodara (Vadodara, Gujarat)
+0.15
+0.13
+0.00
+0.13 Directly
+under Item
+No. (i)
+under Item
+Disaster relief Madurantakam (Kanchipuram,
+Tamilnadu)
+0.06
+0.06
+1.28 Directly
+CSR Activities
+Annual Report 2019-20
+Sun Pharmaceutical Industries Limited ("Sun Pharma") has
+been working on Corporate Social Responsibility having
+passion and perseverance in foraying the neon ways
+of serving, enriching and inflating the social benefits to
+downtrodden and unprivileged sections of society residing
+in the vicinity of our business operations and also in many
+other remote and rural areas in India.
+14.2
+11.8
+8.8
+8.55
+8.6
+6.2
+16.9
+15.5
+5.5
+4.2
+2.5 2
+4.4
+8.3
+2.8
+0
+0
+0
+0
+0
+13.7
+13.4
+17.1
+Project or
+Sun Pharma has initiated various CSR Programmes
+compartmentalised into thematic areas identified during
+Community Need Assessment.
+The Company has formulated CSR policy for driving its CSR
+programme for community benefits. These projects are
+focussed towards downtrodden, unprivileged and lower
+strata of society. All activities are aligned with the item-
+areas mentioned in the Schedule VII of the Companies
+Act, 2013 read with the Companies (Corporate Social
+Responsibility Policy) Rules, 2014. Sun Pharma's Corporate
+Social Responsibility initiatives focus on following
+thematic areas:
+• Healthcare Programme
+• Education Programme
+• Rural Development Programme
+• Environment Conservation Programme
+• Sanitation Programme
+Project Indicators and Achievements
+0
+• Drinking Water Project and
+In FY 19-20, the Company has invested *43.71 Million
+for the implementation of following CSR
+programmes and projects.
+1. MOBILE HEALTHCARE UNIT PROGRAMME:
+Mobile Healthcare Unit (MHU) programme provides
+basic healthcare services at the doorstep of
+communities residing in remote, underserved and
+unreached areas. Our MHU van is equipped with
+common medicines, First-aid materials and basic
+diagnostic equipment. The main aim of MHU is to
+provide services under different thematic areas such
+as Maternal Health, Neonatal and Infant Health,
+Child and Adolescent health, Reproductive Health
+and Contraceptive Services, Prevention and control
+of Communicable and Non-Communicable diseases.
+MHU vans are covering 186 villages of Halol, Panoli,
+Karkhadi, Ankleshwar, Mohali, Toansa, Paonta Sahib,
+Dewas, Malanpur, Ahmednagar, and Madurantakam
+and work in close co-ordination with Government's
+Health Department. During the FY 19-20, our MHUS
+has benefitted 144,343 patients by way of Clinical
+treatment and 65,382 villagers through Preventive
+& Promotive healthcare with an investment of
+*24.53 Million.
+55.5
+39
+33.7
+30.9
+28.4
+19.1
+16.5
+⚫ Disaster Relief Programme
+Total
+Name of the Director
+0.00
+2399334970
+reference of the Committee were amended with effect
+from April 1, 2019, to inter alia include recommending
+to the board, all remuneration, in whatever form,
+payable to senior management, etc.
+The Nomination and Remuneration Committee has
+adopted the criteria as provided in the Guidance Note
+on Board Evaluation by Securities and Exchange Board
+of India vide its notification no. SEBI/HO/ CFD/CMD/
+CIR/P2017/004 dated January 05, 2017 for evaluation
+of the Individual Directors including Independent
+Directors. The said criteria provides certain
+parameters like knowledge, competency, fulfillment
+of functions, availability and attendance, initiative,
+integrity, contribution, independence and independent
+views and judgment.
+Four meetings of Nomination and Remuneration
+Committee were held during the year ended March
+31, 2020. The dates on which the meetings were held
+are as follows:
+May 28, 2019; August 13, 2019; November 7, 2019
+and February 06, 2020.
+The attendance of each Member of the Committee
+is given below:
+Name of the Director
+Number of
+Nomination and
+Remuneration
+Committee Meetings
+entitled to attend
+Number of
+Nomination and
+Remuneration
+Committee Meetings
+Ms. Rekha Sethi
+Mr. Israel Makov
+Mr. Gautam Doshi
+Corporate Governance Report
+attended
+4
+4
+4
+4
+4
+6. REMUNERATION OF DIRECTORS
+The remuneration of the Managing Director and Whole-time Director(s) is approved by the Board, as per recommendation
+of the Nomination and Remuneration Committee within the overall limit fixed by the shareholders at their meetings.
+The Non-Executive Directors of the Company are entitled to sitting fees of $100,000/- for attending each meeting of
+the Board and/or of Committee thereof except the Corporate Governance and Ethics Committee for which they are
+entitled to *50,000/- for each meeting of the Committee.
+The details of Remuneration paid/payable to the Directors of the Company for the year ended March 31, 2020
+are given below:-
+For the year ended March 31, 2020
+4
+Statutory Reports
+69 >>>
+The terms of reference of the Nomination and
+Remuneration Committee inter alia include; to
+determine the Company's policy on specific
+remuneration packages for executive directors, to
+review, recommend and/ or approve remuneration
+to Whole-time Directors, to review and approve the
+Remuneration Policy of the Company, to formulate
+criteria for evaluation of Independent Directors and
+the Board, to devise a policy on Board Diversity,
+to identify persons who are qualified to become
+directors and who may be appointed in senior
+management in accordance with the criteria laid down
+and recommend to the Board the appointment or
+removal of such persons and carry out evaluation of
+every directors' performance, etc. Further, pursuant
+to the amendments in Listing Regulations the terms of
+The attendance of each Member of the Committee
+is given below:
+May 27, 2019¹; August 12, 2019; November 7, 2019;
+and February 05, 2020.
+Four Audit Committee Meetings were held during the
+year ended March 31, 2020. The dates on which the
+Meetings were held are as follows:
+In addition, the Committee has discharged such other
+role/function as envisaged under Regulation 18 of the
+Listing Regulations, 2015 and the provisions of Section
+177 of the Companies Act, 2013.
+The Committee has discussed with the Statutory
+and Internal auditors about their audit methodology,
+audit planning and significant observations/
+suggestions made by them.
+The Audit Committee of the Company presently
+comprises of three Directors which include two
+Independent Non-executive Directors viz. Ms. Rekha
+Sethi, Mr. Gautam Doshi, and one Whole-time Director
+viz. Mr. Sailesh T. Desai. Mr. Gautam Doshi is the
+Chairman of the Audit Committee. The constitution of
+Audit Committee meets with the requirements as laid
+down under Section 177 of the Companies Act, 2013
+and also of Regulation 18 of the Listing Regulations.
+Mr. Sunil R. Ajmera, the Company Secretary of the
+Company is the Secretary of the Audit Committee.
+The terms of reference of the Audit Committee inter
+alia include: overseeing the Company's financial
+reporting process, reviewing with the management,
+the annual financial statements and auditor's report
+thereon before submission to the board for approval,
+recommendation for appointment, remuneration and
+terms of appointment of auditors of the Company,
+reviewing the adequacy of internal audit function,
+discussion with internal auditors of any significant
+findings and follow up there on, evaluation of
+internal financial controls and risk management
+systems, review functioning of Whistle Blower/
+Vigil Mechanism, approval of appointment of Chief
+Financial Officer, review and monitor the auditor's
+independence and performance and effectiveness of
+audit process, approval of transactions with related
+parties etc. Further, pursuant to the amendments
+in Listing Regulations the terms of reference of the
+Committee were amended with effect from April 1,
+2019 to include reviewing the utilisation of loans and/
+or advances from/ investment by the holding company
+in the subsidiary exceeding *100 Crore or 10% of
+the asset size of the subsidiary, whichever is lower
+including existing loans / advances / investments.
+The Committee acts as a link between the
+management, external and internal auditors and the
+Board of Directors of the Company.
+Executives from the Finance Department,
+representatives of the Statutory Auditors and
+Internal Auditors are also invited to attend the Audit
+Committee Meetings, whenever necessary.
+4. AUDIT COMMITTEE
+All the Directors and senior management have affirmed
+compliance with the Global Code of Conduct as
+approved and adopted by the Board of Directors and
+a declaration to this effect signed by the Managing
+Director has been annexed as Annexure 'A' to the
+Corporate Governance Report. The Global Code of
+Conduct of the Company is available on the website of
+the Company at www.sunpharma.com.
+The Board of Directors has laid down a Global Code
+of Conduct for all Board members, and all employees,
+including the senior management of the Company.
+3. CODE OF CONDUCT
+Annual Report 2019-20
+The Transformation Journey
+Mr. Sailesh T. Desai
+Number of Audit
+Committee Meetings
+entitled to attend
+4
+4
+4
+Number of Audit
+Committee Meetings
+attended
+1 The Audit Committee meeting held on May 27, 2019 was
+adjourned for consideration of few agenda items and the
+adjourned meeting was held on May 28, 2019, and was
+attended by all members.
+5. NOMINATION AND REMUNERATION
+COMMITTEE
+4
+4
+4
+The Nomination and Remuneration Committee
+presently comprises of three Non-executive Directors
+viz. Ms. Rekha Sethi, Mr. Israel Makov and Mr. Gautam
+Doshi. Ms. Rekha Sethi is the Chairperson of the
+Committee. The constitution of the Nomination
+and Remuneration Committee meets with the
+requirements of Section 178 of the Companies Act,
+2013 as also the requirements laid down in Regulation
+19 of the Listing Regulations. Mr. Sunil R. Ajmera, the
+Company Secretary of the Company is the Secretary
+of the Committee.
+(Amount in *)
+Directors
+Salary 1
+Bonus
+10.94
+204902536
+8.54
+87144164
+3.63
+184796085
+7.70
+2618747
+0.11
+9579523
+0.40
+16966085
+0.71
+307313174
+12.81
+24992
+Mr. Gautam Doshi
+Ms. Rekha Sethi
+31549
+0.00
+1271108
+0.05
+9970862
+0.42
+262581610
+100.00
+54.69
+No. of Shares
+1312134535
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia³
+32,358,000
+6,471,600
+100.00
+16.12 Category-wise Shareholding as on March 31, 2020 of Equity Shares
+Particulars
+A. Indian Promoters and Persons acting in Concert
+B. Mutual Funds and UTI
+C. Banks/ Financial Institutions and Insurance Companies
+D. Private Corporate Bodies
+E. Indian Public
+F.
+Directors
+G. NRIS/OCBS
+H. Trusts
+I. Foreign Portfolio Investor (Corporate)
+J. Foreign National
+K. Foreign Bank and Foreign Companies
+L. IEPF
+M. Others
+Total
+<<78
+Percentage
+59,165,179
+43,076,460
+61,767,824
+658,839
+300
+25000
+30000
+35000
+350
+372.95
+352.20
+389.65
+37481.12 37332.79
+39031.55 409.50 401.00
+400
+40129.05
+434.00
+29468.49
+38297.29
+38667.33
+39394.64
+40000
+39714.20
+450
+41253.74 40723.49
+433.60
+426.75
+449.80
+450.65
+456.95
+45000
+500
+40793.81 432.50
+250
+200
+Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19
+389.45
+400.95 11118.00 11023.25
+409.85
+400
+11000
+434.30
+432.55
+433.40
+11201.75
+11748.15
+449.85
+11500
+11474.45
+426.75
+450
+11962.10
+11877.45
+450.40
+457.65 11922.80 11788.85
+12000
+12056.05
+12168.45
+500
+12500
+Sun Pharmaceutical Industries Limited & NSE Nifty closing price:
+Closing Price of Sun Pharma's Share on BSE
+BSE Sensex (Closing)
+Feb-20 Mar-20
+Dec-19 Jan-20
+BSE Sensex and NSE Nifty
+10500
+-
+(Source: BSE and NSE website)
+408.15
+453.50
+365.40
+443.30
+365.70
+443.00
+368.00
+418.60
+367.40
+418.00
+344.55
+461.70
+350.40
+453.40
+462.00
+484.25
+446.00
+484.10
+Month's Low Price
+Month's High Price
+Month's Low Price
+Month's High Price
+(NSE) (in)
+National Stock Exchange of India Ltd.
+BSE Ltd. (BSE) (in )
+Annual Report 2019-20
+December, 2019
+November, 2019
+446.00
+408.05
+456.05
+386.65
+March, 2020
+February, 2020
+January, 2020
+312.00
+414.80
+315.20
+414.85
+369.45
+441.75
+369.65
+441.60
+431.25
+462.50
+431.50
+462.50
+420.65
+449.60
+420.85
+450.10
+407.10
+467.40
+407.25
+467.45
+372.60
+440.55
+372.60
+440.00
+386.55
+456.00
+16.7 Share Price performance in comparison to broad-based indices
+Sun Pharmaceutical Industries Limited & BSE Sensex closing price:
+October, 2019
+352.30
+350
+Numbers
+105,970,627
+% to total folios
+99.04
+647,945
+Shares of face value Re. 1/- each
+No. of folios
+Numbers
+Total
+100001 and above
+50001 100000
+40001 50000
+30001 40000
+20001 30000
+10001 20000
+5001 10000
+% to total folios
+Upto 5000
+16.11 Distribution of Shareholding as on March 31, 2020
+The share transfers which were received in physical form upto March 31, 2019 were processed and transferred by
+Registrar and Share Transfer Agents and the share certificates were returned within the stipulated period from the
+date of receipt, subject to the documents being valid and complete in all respects. Effective from April 1, 2019, SEBI has
+mandated that shares can be transferred only in demat. Hence no transfer of shares in physical form can be lodged by
+the shareholders.
+16.10 Share Transfer System
+Fax: 022-49186060
+E-Mail: rnt.helpdesk@linkintime.co.in
+Tel: 022-49186270
+Vikhroli West, Mumbai 400 083
+C 101, 247 Park, LBS Marg,
+Link Intime India Pvt. Ltd.
+(Share transfer and communication regarding share certificates,
+dividends and change of address)
+Registrars & Transfer Agent
+16.9 Registrars & Transfer Agent
+(Source: Compiled from data available on BSE and NSE website)
+28.68%
+No. of Equity Shares held
+4.42
+2,839
+0.43
+Perquisites/
+Benefits²
+4,246,860
+92.14
+2,210,751,491
+2,399,334,970
+100.00
+654,242
+0.10
+642
+0.76
+18,330,181
+0.04
+252
+0.19
+4,604,949
+0.01
+100
+0.21
+5,093,141
+0.02
+143
+0.38
+9,130,908
+0.06
+369
+1.06
+25,329,289
+0.30
+1,952
+0.84
+20,124,384
+68.12%
+372.90
+96.80%
+63.79%
+Period
+Sun Pharma
+Sun Pharma
+relative to Nifty
+Share Price
+Nifty
+Period
+Sun Pharma
+% change in
+% change in
+16.8 Share price performance relative to NIFTY and BSE Sensex based on share price on March 31, 2020
+Corporate Governance Report
+Statutory Reports
+77 »
+BSE Sensex
+(Source: BSE and NSE website)
+NSE Nifty (Closing)
+Feb-20 Mar-20
+Nov-19 Dec-19 Jan-20
+Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19
+200
+8000
+8597.75
+250
+8500
+9000
+300
+9500
+10000
+Closing Price of Sun Pharma's Share on NSE
+Share Price
+Sun Pharma
+relative to Sensex
+Year-on-Year
+96.60%
+-70.95%
+5.40%
+-65.55%
+-66.85% 5 Years
+1.26%
+-65.59%
+-48.27%
+-0.51%
+-48.79%
+-42.53% 3 Years
+-6.28%
+-48.80%
+10 Years
+5 Years
+3 Years
+-18.29%
+-10.62%
+-28.91%
+-13.85% 2 Years
+-14.99%
+-28.84%
+2 Years
+-2.71%
+-23.80%
+-26.51%
+-0.39% Year-on-Year
+-26.03%
+-26.43%
+32.80% 10 Years
+September, 2019
+August, 2019
+July, 2019
+During the year ended March 31, 2020, two meetings
+Chairman of the Committee is Mr. Dilip S. Shanghvi.
+The constitution of the Corporate Social Responsibility
+Committee meets the requirements of section 135
+of the Companies Act, 2013. Mr. Sunil R. Ajmera, the
+Company Secretary of the Company is the Secretary
+of the Committee. The terms of reference of the
+Corporate Social Responsibility Committee include to
+formulate and recommend to the Board, a Corporate
+Social Responsibility Policy, to monitor the Corporate
+Social Responsibility Policy of the Company from time
+to time, to recommend the amount of expenditure to
+be incurred on the activities, to monitor amount spent
+on the CSR initiatives of the Company as per the CSR
+policy, to discharge such other functions and exercise
+such other powers as may be delegated/ directed by
+the Board of Directors from time to time etc.
+The contents of the CSR Policy of the Company
+can be accessed through the web link:
+http://www.sunpharma.com/policies.
+The Corporate Social Responsibility Committee
+presently comprises of three Directors viz. Mr. Sudhir
+V. Valia, Ms. Rekha Sethi and Mr. Dilip S. Shanghvi. The
+CORPORATE SOCIAL RESPONSIBILITY
+COMMITTEE
+The Committee of Directors (Allotment) was formed
+to consider and approve the allotment of shares of
+the Company under the ESOP Schemes. Since both
+ESOP Schemes have been completed, the Board
+of Directors have dissolved the 'Committee of
+Directors (Allotment)' of the Company with effect
+from May 27, 2020.
+The Committee of Directors (Allotment) inter-alia
+has the following powers: To allot shares pursuant
+to Employee Stock Option (ESOP) Schemes and to
+issue the equity share certificates to the shareholders
+holding the shares in physical form, to perform any
+or all of the acts, deeds, things and matters as may be
+required in connection with such issue, allotment and
+Listing of Equity Shares.
+No meetings of the Committee of Directors (Allotment)
+were required to be held during the year ended
+March 31, 2020.
+The Committee of Directors (Allotment) comprised of
+three Directors viz. Mr. Dilip S. Shanghvi, Mr. Sudhir V.
+Valia and Mr. Sailesh T. Desai. Mr. Sudhir V. Valia is the
+Chairman of the Committee and Mr. Sunil R. Ajmera,
+Company Secretary is the Secretary of the Committee.
+9.
+8. COMMITTEE OF DIRECTORS (ALLOTMENT)
+The total numbers of complaints received and resolved
+to the satisfaction of shareholders, during the year
+under review were 3. There were no complaints
+pending at the beginning or at the end of the year.
+4
+4
+of Corporate Social Responsibility Committee
+were held on May 27, 2019 and November 6,
+2019. The attendance of each member of
+Committee is as follows:
+3
+4
+4
+attended
+entitled to attend
+Investor Complaints:
+Committee Meetings Committee Meetings
+Relationship
+Relationship
+Number of
+Stakeholders'
+Stakeholders'
+Number of
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+4
+Name of the Director
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Ms. Rekha Sethi
+Number of Corporate Number of Corporate
+Social Responsibility Social Responsibility
+Committee meetings Committee meetings
+entitled to attend
+attended
+Mr. Gautam Doshi
+2
+Number of
+Corporate
+Governance & Ethics
+Committee Meetings
+attended
+Number of Corporate
+Governance & Ethics
+Committee Meetings
+entitled to attend
+Committee meetings Committee meetings
+attended
+2
+2
+2
+entitled to attend
+Name of the Member
+Number of Risk
+Management
+Number of Risk
+Management
+The attendance of each Member of the Committee
+is given below:
+Annual Report 2019-20
+Mr. C S Muralidharan
+Mr. Sudhir V. Valia
+Mr. Dilip S. Shanghvi
+Name of the member
+is as follows:
+The attendance of each member of committee
+The Transformation Journey
+<72
+During the year ended March 31, 2020, two meetings
+of Risk Management Committee were held on May 27,
+2019 and November 6, 2019.
+The Risk Management Committee presently comprises
+of Mr. Dilip S. Shanghvi, Managing Director of the
+Company, Mr. Sudhir V. Valia, Director of the Company
+and Mr. C. S. Muralidharan, Chief Financial Officer
+of the Company. The Chairman of the Committee
+is Mr. Dilip S. Shanghvi. The constitution of the
+Committee meets the requirements of Regulation
+21 of the Listing Regulations. The terms of reference
+of the committee inter alia include: to formulate and
+recommend to the Board a Risk Management Plan/
+Policy, to implement, monitor and review the risk
+management plan for the Company, to recommend
+and implement procedures for risk assessment and
+minimisation, to monitor the Risk Management Policy
+of the Company from time to time, to discharge such
+other functions and exercise such other powers
+as may be delegated/ directed by the Board of
+Directors from time to time. Mr. Sunil R. Ajmera, the
+Company Secretary of the Company is the Secretary
+of the Committee.
+10. RISK MANAGEMENT COMMITTEE
+2
+2
+2
+2
+2
+2
+Mr. Gautam Doshi
+4
+Name of the Director
+May 28, 2019; August 12, 2019; November 7, 2019
+and February 05, 2020.
+The Transformation Journey
+Besides this, all the Whole-time Directors to whom remuneration is paid are also entitled to encashment of leave as
+per Company policy, and gratuity at the end of tenure, as per the rules of the Company.
+4 The remuneration mentioned in the aforesaid table is the remuneration paid to Mr. Kalyanasundaram Subramanian by the Company from July
+4, 2019 to March 31, 2020. Mr. Kalyanasundaram Subramanian was not paid any remuneration from the Company as Whole-time Director
+upto July 3, 2019 as he was appointed without any remuneration. Mr. Kalyanasundaram Subramanian was also the Whole-time Director &
+Chief Executive Officer of Sun Pharma Laboratories Limited, Wholly-Owned Subsidiary of the Company, until July 3, 2019 and he received
+remuneration from Sun Pharma Laboratories Limited till then. Until, July 3, 2019, he received remuneration of ₹16,350,140/- from Sun
+Pharma Laboratories Limited. Mr. Kalyanasundaram Subramanian stepped down from the position of Whole-time Director & CEO of Sun
+Pharma Laboratories Limited with effect from July 4, 2019 and the Nomination and Remuneration Committee and Board of Directors of the
+Company approved payment of his remuneration with effect from July 4, 2019 till the remaining term of his appointment upto February 13,
+2021 and his remuneration was also approved by the members of the Company at 27th Annual General Meeting held on August 28, 2019.
+*He is part of Promoter Group but not a promoter
+3 Mr. Sudhir V. Valia stepped down from the position of Whole-time Director of the Company to Non-Executive Director of the Company,
+with effect from May 29, 2019. He continues to be a Non-Promoter*, Non-Executive and Non-Independent Director of the Company.
+As he stepped down from the position of Whole-time Director of the Company, the Salary includes the following amounts paid at the
+time of final settlement: PL encashment of *15,054,320 and Gratuity of ₹38,891,827 which is being reimbursed by LIC as per policy.
+Subsequent to May 29, 2019, payment of sitting fees of $900,000 was made to Mr, Sudhir Valia for the meetings attended by him as
+Non-executive Director.
+1 Salary includes Special Allowance. Salary of Mr. Kalyanasundaram Subramanian includes variable pay of ₹7,938,167/-.
+2 Perquisites include House Rent Allowance if any, Leave Travel Assistance, Medical Reimbursement, contribution to Provident Fund and
+such other perquisites, payable to Directors, as per Company Policy.
+<<70
+Note:
+600,000
+2,100,000
+2,100,000
+Mr. Gautam Doshi
+600,000
+Mr. Vivek Chaand Sehgal
+1,900,000
+Annual Report 2019-20
+1,000,000
+Ms. Rekha Sethi
+Mr. Israel Makov
+49,743,097
+12,047,952
+3,908,153
+33,786,992
+Mr. Kalyanasundaram Subramanian4
+15,805,534
+2,178,339
+2,271,199
+11,355,996
+Mr. Sailesh T. Desai
+900,000
+1,000,000
+1,900,000
+Notes:-
+a) The Agreement with Mr. Dilip S. Shanghvi and
+Mr. Sailesh T. Desai, the Executive Directors for
+their present term are for a period of 5 years as
+follows; i) from April 1, 2018 to March 31, 2023
+and remuneration for period from April 1, 2018
+to March 31, 2021 for Mr. Dilip S. Shanghvi,
+Managing Director ii) from April 1, 2019 to
+March 31, 2024 and remuneration for period of
+3 years from April 1, 2019 to March 31, 2022
+for Mr. Sailesh T. Desai, Whole-time Director.
+The agreement with Mr. Kalyanasundaram
+Subramanian, Whole-time Director, is for a period
+of 2 years with effect from February 14, 2019
+to February 13, 2021, that earlier was without
+any remuneration and which was revised on July
+4, 2019, to include payment of remuneration
+with effect from July 4, 2019 to February 13,
+2021 as approved by Special resolution passed
+by members on August 28, 2019. Either party
+to the agreement is entitled to terminate the
+Agreement by giving to the other party 30 days'
+notice in writing. Mr. Sudhir Valia stepped down
+from the position of Whole-time Director of
+the Company to Non-Executive Director of the
+Company, with effect from May 29, 2019. He
+continues as a Non-Promoter, Non-Executive
+and Non-Independent Director of the Company.
+Consequently the agreement with Mr. Sudhir
+V. Valia for remuneration and appointment
+as Whole-time Director was terminated
+w.e.f. May 29, 2019.
+b)
+Four meetings of the Stakeholders' Relationship
+Committee were held during the year ended March
+31, 2020. The dates on which Meetings were held
+are as follows:
+Corporate Governance Report
+Statutory Reports
+71 >>>
+14345019
+Mr. Sudhir Valia
+The Board has designated severally, Mr. Sunil R.
+Ajmera, Company Secretary and Mr. Ashok I. Bhuta,
+Sr. G.M-Secretarial as Compliance Officers for the
+purposes of/under rules, regulations etc. issued by the
+Securities Exchange Board of India, Stock Exchanges,
+and Companies Act, 2013.
+The terms of reference of the Committee inter
+alia include the following: To look into redressal of
+grievances of shareholders, debenture holders and
+other security holders of the Company, to consider
+and resolve grievances of the security holders
+of the Company including complaints related to
+transfer of shares, non-receipt of balance sheet,
+non-receipt of declared dividends, etc, to approve
+issue of duplicate share certificates and to oversee
+and review all matters connected with the transfer,
+transmission and issue of securities, to oversee the
+performance of the Registrar and Transfer Agents
+and recommend measures for overall improvement
+in the quality of investor services, etc. However,
+pursuant to amendments in the Listing Regulations,
+the terms of reference of the Committee have been
+revised and replaced w.e.f. April 1, 2019 to inter
+alia include the following: Resolving the grievances
+of the security holders of the Company including
+complaints related to transfer/transmission of shares,
+non-receipt of annual report, non-receipt of declared
+dividends, issue of new/duplicate certificates, general
+meetings; Review of measures taken for effective
+exercise of voting rights by shareholders; Review
+of adherence to the service standards adopted by
+the Company in respect of various services being
+rendered by the Registrar & Share Transfer Agent;
+Review of the various measures and initiatives
+taken by the Company for reducing the quantum
+of unclaimed dividends and ensuring timely receipt
+of dividend warrants/annual reports/statutory
+notices by the shareholders of the Company, to
+investigate any activity within its terms of reference,
+to seek information from share transfer agents, to
+obtain outside legal or other professional advice
+and to secure attendance of outsiders with relevant
+expertise, if it considers necessary and have full
+access to the information contained in the records
+of the Company.
+Mr. Sunil R. Ajmera, the Company Secretary of the
+Company is the Secretary of the Committee.
+The Stakeholders' Relationship Committee presently
+comprises of three Directors viz. Mr. Gautam
+Doshi, Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia.
+Mr. Gautam Doshi is the Chairman of the Committee.
+The constitution of the Stakeholders' Relationship
+Committee meets with the requirements of Section
+178 of the Companies Act, 2013 and also of Regulation
+20 of the Listing Regulations.
+COMMITTEE
+STAKEHOLDERS' RELATIONSHIP
+7.
+8000
+Nil
+Nil
+Nil
+No. of Equity Shares
+held (held singly or
+jointly as first holder)
+Mr. Gautam Doshi
+Mr. Vivek Chaand Sehgal
+Ms. Rekha Sethi
+Mr. Israel Makov
+Director
+The details of Equity Shares held by Non-Executive
+Directors as on March 31, 2020 are as follows:
+The remuneration of Whole-time Directors
+consists only of fixed components except for
+Mr. Kalyanasundaram Subramanian.
+There is no separate provision for payment of
+severance fees to Whole-time Director(s).
+The Company had formulated two Schemes for
+grant of stock options to the eligible employees
+of erstwhile Ranbaxy Laboratories Ltd., pursuant
+to the Scheme of Arrangement for merger of
+Ranbaxy Laboratories Ltd., into the Company out
+of which one scheme was completed in August
+2017 and second scheme was completed in
+February 2020. None of the Directors are entitled
+to stock options.
+d)
+c)
+The attendance of each Member of the Committee
+is given below:
+4
+2
+Ms. Rekha Sethi
+(v) The Internal Auditor reports their findings to the
+Audit Committee of the Company.
+(iv) The auditors have issued an unmodified opinion
+of the financial statements of the Company.
+(iii) The Company sends quarterly results alongwith
+summary of significant events to the shareholders
+whose e-mail IDs are available with the
+Company/Registrar.
+Corporate Governance Report
+Statutory Reports
+75 >>
+Non-Executive Director. The Company has
+provided a separate office for the Chairman
+at the corporate office. The Chairman is also
+entitled reimbursement of expenses incurred in
+performance of his duties.
+(ii) The Chairman of the Company is a
+The Company complies with all the mandatory
+requirements specified under Listing Regulations.
+(i)
+•
+Details of compliance and Adoption/Non Adoption
+of the non-mandatory requirements for the year
+ended March 31, 2020:
+number of complaints pending as on end of the
+financial year: 0
+15. MEANS OF COMMUNICATION
+number of complaints disposed of during the
+financial year: 1
+C.
+a. number of complaints filed during the
+financial year: 1
+• Disclosures in relation to the Sexual Harassment of
+Women at Workplace (Prevention, Prohibition and
+Redressal) Act, 2013:
+year under review.
+• Total fees for all services paid by the listed entity
+and its subsidiaries, on a consolidated basis, to the
+statutory auditor and all entities in the network
+firm/network entity of which the statutory
+auditor is a part was $145,815,853/- (Rupees
+Fourteen Crore Fifty Eight Lakh Fifteen Thousand
+Eight Hundred and Fifty Three only), for the
+• Certificate from a company secretary in practice
+that none of the directors on the board of the
+Company have been debarred or disqualified from
+being appointed or continuing as directors of the
+Company by the Board/Ministry of Corporate
+Affairs or any such statutory authority has
+been annexed as Annexure 'B' to the Corporate
+Governance Report.
+• Apart from the above and sitting fees paid to
+Non-Executive Directors, there are no pecuniary
+transactions with Non Executive directors of the
+Company or the companies in which they are
+interested which had potential conflict of interest
+with the Company.
+• All the transactions with entities in which the
+Independent Directors are/were interested
+constitute negligible percent of the revenue
+of the Company.
+Valia, Non-Executive and Non-Independent Director
+is interested except for the subsidiaries of the
+Company wherein it is deemed that he does not have
+any personal / pecuniary interest. d) Transactions
+with Anshul Speciality Molecules Private Limited
+for Purchase of Goods -17,580,630 in which
+Mr. Gautam Doshi, Non-Executive and Independent
+Director is interested.
+During the year, there were pecuniary transactions
+with the Companies in which Non-Executive
+Directors are interested as follows: a) Transaction
+of receiving of services from Makov Associates
+Limited of 143,930,686 in which Mr. Israel Makov,
+Non-Executive and Non-Independent Chairman is
+interested; b) Transactions with MothersonSumi
+INfotech & Designs Limited for receiving of services
+*4,773,342 and with Anest Iwata Motherson Private
+Limited for receiving of services - 8,204 in which
+entities Mr. Vivek Chaand Sehgal, Non-Executive and
+Independent Director is interested c) Transactions
+with Fortune Integrated Assets Finance Limited for
+purchase of Goods - 34,740, transactions with
+Suraksha Asset Reconstruction Private Limited -
+*2,650,000 for sale of property, plant and equipment,
+transactions with Sun Petrochemicals for lease rent
+received - *2,400,000, transactions with Sun Pharma
+Advanced Research Company Limited for Revenue
+from contracts with customers, net of returns, sale
+of property, plant and equipment, royalty expenses,
+receiving of service expenses, reimbursement
+of expenses paid, rendering of service income,
+reimbursement of expenses received and lease rent
+received 507,603,286 in which entities Mr. Sudhir
+http://www.sunpharma.com/policies.
+• The policy on dealing with the related party
+transactions is available on the website of the
+Company and can be accessed at:
+• During the year, a separate meeting of the
+independent directors was held on February 06,
+2020 inter-alia to evaluate the performance of non-
+independent directors and the board as a whole.
+b.
+• Website: The Company's website www.sunpharma.com
+contains a separate dedicated section 'INVESTORS'
+where shareholders' information is available. The
+Annual Report for 2019-20 and Annual Report/
+Abridged Annual Report for the past years are
+also available on the website in a user friendly and
+downloadable form. Apart from this, official news
+releases, detailed presentations made to media, analysts
+etc., and the transcript of the conference calls are also
+displayed on the Company's website.
+• Financial Results: The annual, half-yearly and
+quarterly results are regularly posted by the
+Company on its website www.sunpharma.com and
+are also sent to the shareholders whose e-mail IDs
+are registered with the Company. These are also
+submitted to the Stock Exchanges on which the
+securities of the Company are listed in accordance
+with the requirements of the Listing Regulations and
+published in all English Editions of 'Financial Express'
+and Gujarati Edition of 'Financial Express' which is
+published in Ahmedabad.
+• Annual Report: Annual Report containing inter alia
+Audited Annual Accounts, Consolidated Financial
+Statements, Board's Report, Auditor's Report,
+and other important information is sent to the
+shareholders whose e-mail IDs are registered with
+the Company and physical copy to the rest of the
+shareholders and others entitled thereto every year.
+However pursuant to SEBI Circular No. SEBI/HO/
+CFD/CMD1/CIR/P/2020/79 dated May 12, 2020
+and MCA General Circular No. 20/2020 dated May
+5, 2020 of Ministry of Corporate Affairs, due to
+COVID, no physical copies of the Annual Report for
+FY20 will be sent. The Management Discussion and
+Analysis Report forms part of the Annual Report.
+June, 2019
+April, 2019
+May, 2019
+16.6 Stock Market Data - Equity Shares of Re.1/- paid-up value:
+The Transformation Journey
+<76
+The Company has paid the Listing fees for the FY20, to BSE
+Ltd., and National Stock Exchange of India Limited
+ISIN No.INE044A01036
+SUNPHARMA
+524715
+(c) Demat ISIN Numbers in NSDL and
+CDSL for Equity Shares of Re.1/- each
+Exchange of India Limited, Exchange
+Plaza, 5th Floor, Plot No. C/1, G Block,
+Bandra Kurla Complex, Bandra (East),
+Mumbai 400 051
+(b) Trading Symbol at National Stock
+(a) Trading Symbol at BSE Ltd., Market
+Operations Dept., P. J. Towers, Dalal
+Street, Mumbai - 400 001
+16.5 Listing Details
+On or before, Tuesday, September 1, 2020
+16.4 Dividend Payment Date:
+16.3 Details of Book-closure for Equity Shareholders:
+From Friday, August 21, 2020 to Thursday, August 27, 2020
+(both days inclusive)
+Third or Fourth week of May 2021.
+Audited Results for year
+ended March 31, 2021
+Results for quarter ending First week of February 2021.
+December 31, 2020
+Results for quarter ending First week of November 2020.
+September 30, 2020
+Results for quarter ending First week of August 2020.
+June 30, 2020
+16.2 Financial Calendar (tentative):
+Thursday, August 27, 2020 at 3:30 p.m
+Through Video Conferencing/Other
+Audio Visual means
+Day, Date and Time
+Venue
+16. GENERAL SHAREHOLDER INFORMATION
+16.1 Annual General Meeting:
+• Corporate Filing: Announcements, Quarterly
+Results, Shareholding Pattern etc. of the Company
+are regularly filed by the Company with the Stock
+Exchanges and are available on the website of
+BSE Ltd. - www.bseindia.com and National Stock
+Exchange of India Ltd. - www.nseindia.com.
+• Reminder to Investors: Reminders for
+unpaid dividend are sent to shareholders,
+regularly every year.
+• Chairman's Communique: The Chairman's Speech
+is sent to the stock exchanges and placed on the
+website of the Company.
+• Details of the familiarisation programme of the
+independent directors are available on the website of
+the Company at: http://www.sunpharma.com/policies
+violation or potential violation easily and free of
+any fear of retaliation, provided they have raised
+the concern in good faith. An Ombudsperson/s has
+been appointed to receive the complaints through
+a portal or email or letters who would investigate
+the complaints with an investigating committee. The
+final decision would be taken by the Ombudsperson
+in consultation with the Management and the Audit
+Committee. The Policy is expected to help to draw
+the Company's attention to unethical, inappropriate
+or incompetent conduct which has or may have
+detrimental effects either for the organisation or
+for those affected by its functions. The details of
+establishment of vigil mechanism are available on
+the website of the Company. No personnel have
+been denied access to the Audit Committee. The
+Board of Directors at their meeting held on May 28,
+2019 have amended the Whistle Blower Policy to
+enable external parties to report any matter.
+Annual Report 2019-20
+The Transformation Journey
+2016-2017
+Year
+(i)
+Twenty-Fifth AGM Sir Sayajirao Nagargruh, Akota, Vadodara- 390
+020, Gujarat
+Location
+Meeting
+Location and time of the last three Annual General Meetings:
+13. GENERAL BODY MEETINGS
+Statutory Reports
+73 >>
+The policy for determining material subsidiaries
+of the Company is available on the website of the
+Company and can be accessed at:
+http://www.sunpharma.com/policies.
+The Board of Directors of the Company reviewed
+periodically, the statement of all significant
+transactions and arrangements entered into by the
+unlisted subsidiary companies. Copies of the Minutes
+of the Board Meetings of the unlisted subsidiary
+Companies were placed at the Board Meetings of the
+Company held during the year.
+The financial statements including investments made
+by the unlisted subsidiaries were placed before and
+reviewed by the Audit Committee of the Company.
+Ms. Rekha Sethi, Independent Director of the
+Company is also Director on the Board of Sun Pharma
+Laboratories Limited and Sun Pharma Distributors
+Limited. Mr. Gautam Doshi, Independent Director
+of the Company is also Director on the Board of Sun
+Pharma Global FZE and Sun Pharma Holdings.
+In accordance with Regulation 16 of the Listing
+Regulations during the year ended March 31, 2020,
+Sun Pharma Laboratories Limited, Sun Pharmaceutical
+Industries, Inc and Taro Pharma USA were material
+subsidiary companies whose turnover or net worth
+as per Companies Act, 2013 exceeded 10% of the
+consolidated turnover or net worth respectively, of
+the Company and its subsidiaries in the immediately
+preceding accounting year and Sun Pharma Holdings,
+Mauritius was material subsidiary company whose
+turnover or net worth as per Companies Act, 2013
+exceeded 20% of the consolidated turnover or net
+worth respectively, of the Company and its subsidiaries
+in the immediately preceding accounting year.
+12. SUBSIDIARY COMPANIES
+August 12, 2019; October 7, 2019; November 7, 2019;
+and February 05, 2020.
+Four meetings of the Corporate Governance and Ethics
+Committee were held during the year ended March
+31, 2020. The dates on which the Meetings were held
+are as follows:
+The Board has constituted a Corporate Governance
+and Ethics Committee with effect from May 28,
+2019. Mr. Gautam Doshi, Director, Ms. Rekha Sethi,
+Director, Mr. C. S. Muralidharan, CFO and Mr. Ashok
+Bhuta Senior GM - Secretarial & Compliance Officer
+are the members of the Committee. Mr. Gautam
+Doshi is the Chairman of the Committee. The terms
+of reference of committee inter alia include: to
+review the ethical standards and best practices in
+respect of Corporate Governance by the Company
+in spirit, substance and intent perspective apart
+from benchmarking wherever possible with the best
+practices that are comparable across the industry; to
+monitor Company's compliance with the Corporate
+Governance Guidelines and applicable laws and
+regulations and make recommendations to the Board
+on all such matters and on any corrective action to be
+undertaken, as the Committee may deem appropriate;
+to set forth policies in respect of furtherance of its
+objectives and recommend changes and monitor and
+review compliance of such policies by the Company's
+directors, officers and employees; to review,
+recommend changes and monitor the implementation
+of the Related Party Transactions Policy of the
+Company and ensure that the Company is in
+compliance with the applicable regulations in respect
+of Related Party transactions from time to time etc.
+The Corporate Governance and Ethics Committee shall
+report to the Audit Committee.
+11. CORPORATE GOVERNANCE AND ETHICS
+COMMITTEE
+4
+4
+Mr. Ashok Bhuta
+4
+4
+Mr. C S Muralidharan
+2
+4
+4
+2017-2018
+1,043,806
+Twenty-Sixth
+2018-2019
+<<74
+The Board of Directors of the Company has
+approved a Whistle Blower Policy/Vigil Mechanism
+to monitor the actions taken on complaints received
+under the said policy. This policy also outlines the
+reporting procedure and investigation mechanism to
+be followed in case an employee blows the whistle
+for any wrong-doing in the Company. Employees
+are given protection in two important areas -
+confidentiality and against retaliation. It is ensured
+that employees can raise concerns regarding any
+• The Company has laid down procedures to inform
+Board members about the risk assessment and
+its minimisation, which is periodically reviewed
+to ensure that risk control is exercised by the
+management effectively.
+• There were no instances of non-compliance by
+the Company on any matters related to the capital
+markets or penalties, strictures imposed on the
+Company by the Stock Exchange or SEBI or any
+statutory authority on any matter related to capital
+markets, during the last three years.
+• No transaction of a material nature has been
+entered into by the Company with its related parties
+that may have a potential conflict with the interests
+of the Company. Register of contracts containing
+transactions, in which directors are interested, is
+placed before the Board of Directors regularly. The
+transactions with the related parties as per Ind
+AS-24, are disclosed in Note 51 of the Notes forming
+part of the Standalone Financial Statements for the
+year ended March 31, 2020.
+14. DISCLOSURES
+No resolution was passed through postal ballot during
+the year under review.
+Resolution Passed Through Postal Ballot:
+(2) Approval of remuneration to be paid to
+Mr. Kalyanasundaram Subramanian, Whole-
+time Director, with effect from July 04, 2019
+till remaining term of his appointment upto
+February 13, 2021.
+At the Twenty-Seventh Annual General Meeting
+(1) Approval for consent/ratification of excess
+commission paid to Non-executive Directors for
+the year 2013-14 pursuant to the letter received
+from MCA in respect of abatement of the pending
+applications for approval of remuneration
+(3) Approval for continuation of Directorship of
+Mr. Israel Makov (DIN:05299764), Non-executive
+Director and Chairman of the Company, having
+attained the age beyond the age of 75 years
+as required under Regulation 17(1A) of SEBI
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015 effective from April 01, 2019.
+(2) Approval for re-appointment of Mr. Sailesh T.
+Desai (DIN: 00005443) as Whole-time Director
+of the Company upon the expiry of his present
+term of office on March 31, 2019, for a further
+period of 5 (Five) years commencing from April
+01, 2019 to March 31, 2024 and remuneration for
+a period of 3(three) years commencing from April
+01, 2019 to March 31, 2022.
+At the Twenty-Sixth Annual General Meeting.
+(1) Approval for re-appointment of Mr. Sudhir V. Valia
+(DIN: 00005561) as Whole-time Director of the
+Company upon the expiry of his present term of
+office on March 31, 2019, for a further period of
+5 (Five) years commencing from April 01, 2019 to
+March 31, 2024 and remuneration for a period of
+3(three) years commencing from April 01, 2019 to
+March 31, 2022.
+(1) Approval for re-appointment of Mr. Dilip S.
+Shanghvi (DIN: 00005588) as Managing Director
+of the Company for a period of 5 (Five) years from
+the expiry of his present term of office i.e. with
+effect from April 01, 2018 to March 31, 2023 and
+approval of maximum limit of remuneration for
+the period from April 01, 2018 to March 31, 2021
+At the Twenty-Fifth Annual General Meeting.
+b)
+(ii) Special Resolutions passed at the last three
+Annual General Meetings:
+3:15 p.m.
+August 28, 2019
+2:45 p.m.
+September 26, 2018
+Time
+10:45 a.m.
+September 26, 2017
+Date
+Corporate Governance Report
+Crystal Hall, Grand Mercure Vadodara Surya
+Palace, Opposite Parsi Agyari, Sayajigunj,
+Vadodara 390 020
+Crystal Hall, Grand Mercure Vadodara Surya
+Palace, Opposite Parsi Agyari, Sayajigunj,
+Vadodara 390 020
+AGM
+Twenty-Seventh
+AGM
+Sitting Fees
+The Transformation Journey
+Shareholding Pattern as on March 31, 2020
+Over 100 markets served across 6 continents - Asia, North America, South
+America, Europe, Africa, and Australia
+Pan-India Distribution Network
+Mumbai (Maharashtra)
+The Transformation Journey
+Vadodara (Gujarat)
+R&D Centres: Vadodara (Gujarat), Mumbai (Maharashtra) and Gurgaon (Haryana)
+Registered office:
+Facilities: Halol, Baska, Panoli, Karkhadi, Ankleshwar and Dahej (all in Gujarat),
+Baddi, Batamandi and Paonta Sahib (all in Himachal Pradesh), Mohali and Toansa
+(both in Punjab), Malanpur and Dewas (both in Madhya Pradesh), Samba and
+Jammu (both in J&K), Ahmednagar (Maharashtra), Maduranthakam (Tamil Nadu),
+Guwahati (Assam), Sikkim, Dadra, Silvassa and Goa
+US, Japan, Romania, Russia, Canada
+As below
+Cip-Isotretinoin | Levulan Kerastick | Tildrakizumab
+'Pharmaceuticals' is the primary reportable segment.
+01-April-2019 to 31-March-2020
+secretarial@sunpharma.com
+Section B Financial Details of the Company
+Sun Pharmaceutical Industries Limited
+SPARC, Tandalja, Vadodara - 390 012, Gujarat
+http://www.sunpharma.com/
+Markets served by the Company - local / state /
+national/international
+2. Number of national locations
+(Provide details of major 5)
+1. Number of international locations
+123
+10
+Total number of locations where business activity is
+undertaken by the Company
+9
+List three key products/services that the Company
+manufactures / provides (as in balance sheet)
+Sector(s) that the Company is engaged in (industrial
+activity code-wise)
+Financial year reported
+8
+7
+L24230GJ1993PLC019050
+Paid-up Capital (₹)
+Total Turnover (*)
+Total Profit after Taxes (*)
+2
+# DIN number
+1
+a. Details of the Director/ Directors responsible for implementation of the BR (Business
+Responsibility) policy / policies
+1.
+BR Information
+Section D
+The Company has not instituted any process to monitor / verify whether any
+other entity/entities (e.g. suppliers, distributors etc.) that the Company does
+business with, participate in the BR initiatives of the Company.
+There is no direct participation.
+Yes
+30-60%, More than 60%]
+Do any other entity / entities (e.g. suppliers,
+distributors etc.) that the Company does
+business with, participate in the BR initiatives of
+the Company? If yes, then indicate the percentage
+of such entity / entities? [Less than 30%,
+Do the Subsidiary Company / Companies
+participate in the BR initiatives of the parent
+company? If yes, then indicate the number of
+such subsidiary company(s)
+3
+2
+Does the Company have any Subsidiary Company /
+Companies?
+1
+Annual Report 2019-20
+Section C Other Details
+The Transformation Journey
+<86
+List of activities in which the above expenditure has Refer Principle 8 - 'Equitable Development'
+been incurred
+However, we have spent 43.71 Million on CSR activities for the year.
+As per regulatory requirements, the Company is required to spend *26.99 Million
+towards CSR for FY20.
+119,067 Million (standalone)
+32,111 Million (standalone)
+2,399 Million
+5
+Total spending on Corporate Social Responsibility
+(CSR) as percentage of Profit after Tax (%)
+4
+6
+# Name
+E-mail id
+Website
+Pharmaceutical companies are going to play a pivotal
+role in shaping this future as healthcare becomes the top
+priority. At Sun Pharma, we develop high-quality medicines
+trusted by healthcare professionals and patients, making
+us the world's 4th largest speciality generic pharmaceutical
+company. However, what gives us more satisfaction is that
+we could make these medicines affordable and accessible,
+in over 100 countries across 6 continents.
+We are living in unpredictable times. The COVID-19
+pandemic and consequential lockdowns across the world
+has only confirmed that. From climate change to technical
+disruptions, it would get more and more difficult to foresee
+the future. Businesses that would be more responsible
+towards resources, whether material or human, would be
+in a better position to adapt to these changes and thrive.
+Sustainability is not an option anymore.
+The COVID-19 global pandemic has reiterated the
+importance of healthcare in a never-before manner.
+The pharmaceutical industry is at the forefront of the
+battle against the pandemic. It has quickly and efficiently
+responded to this global challenge by ensuring that there
+is no shortage of medicines across markets despite supply
+chain disruptions. It has also simultaneously commenced
+clinical trials to test the effectiveness of existing
+medicines in treating symptoms of COVID-19. Many
+global pharmaceutical companies, as well as some Indian
+companies, have initiated efforts for the development of a
+COVID-19 vaccine. The industry has also donated certain
+medicines used in alleviating COVID-19 symptoms, personal
+protective equipment (PPE) kits, disinfectants, gloves, etc.
+Going forward, as healthcare gains priority, the role of the
+pharmaceutical industry will also become more important.
+Message from the Director's Desk
+Annual Report 2019-20
+Business Responsibility Report
+The Transformation Journey
+<84
+Date: May 27, 2020
+Place of Signature: Pune
+Membership Number: 105754
+UDIN: 20105754AAAACU9213
+Partner
+per Paul Alvares
+Our vision of 'Reaching People. Touching Lives' globally as
+a leading provider of valued medicines is what motivates
+us to strive responsibly and scale newer heights towards
+a holistic growth, where all stakeholders benefit, be it
+patients, healthcare professionals, communities, planet,
+regulatory bodies, employees or shareholders.
+ICAI Firm Registration Number: 324982E/E300003
+For S RBC & CO LLP
+10. This report is addressed to and provided to the
+members of the Company solely for the purpose of
+enabling it to comply with its obligations under the
+Listing Regulations with reference to compliance with
+the relevant regulations of Corporate Governance
+and should not be used by any other person or for
+any other purpose. Accordingly, we do not accept or
+assume any liability or any duty of care or for any other
+purpose or to any other party to whom it is shown
+or into whose hands it may come without our prior
+consent in writing. We have no responsibility to update
+this report for events and circumstances occurring
+after the date of this report.
+9. This report is neither an assurance as to the future
+viability of the Company nor the efficiency or
+effectiveness with which the management has
+conducted the affairs of the Company.
+Other matters and Restriction on Use
+Based on the procedures performed by us, as referred
+in paragraph 7 above, and according to the information
+and explanations given to us, we are of the opinion
+that the Company has complied with the conditions
+of Corporate Governance as specified in the Listing
+Regulations, as applicable for the year ended March
+31, 2020, referred to in paragraph 4 above.
+8.
+Opinion
+The above-mentioned procedures include examining
+evidence supporting the particulars in the Corporate
+Governance Report on a test basis. Further, our scope of
+work under this report did not involve us performing audit
+tests for the purposes of expressing an opinion on the
+fairness or accuracy of any of the financial information or
+the financial statements of the Company taken as a whole.
+management and also obtained necessary specific
+representations from management.
+viii. Performed necessary inquiries with the
+Corporate Governance Report
+Statutory Reports
+83 >>
+Chartered Accountants
+This extends to a triple bottom line approach where we
+extend the philosophy of enhancing the quality of life
+by focussing on wellness for Employees, Community
+and Environment.
+Employee Wellness
+Our 36,000+ strong multi-cultural workforce from over
+50 different nationalities is the reason for our success
+and continuous growth. We are committed to hiring
+exceptionally talented human resources and nurture them
+professionally. Our multi-dimensional work environment
+offers high growth opportunities through challenging roles
+4
+Registered address
+3
+Name of the Company
+2
+1
+Corporate Identity Number (CIN) of the Company
+General Information About the Company
+This Business Responsibility Report is our demonstration of
+the triple bottom line approach to business. In accordance
+with SEBI's proposed index and the nine principles of the
+Government of India's 'National Voluntary Guidelines on
+Social, Environmental and Economic Responsibilities of
+Business', the report enunciates our plans and actions to
+build our business responsibly.
+(NVG). It helped us in focussing our efforts towards all
+our stakeholders.
+Section A
+This responsible approach has been the hallmark of our
+Company since many years, but seven years ago, we
+integrated all these components into one interconnected
+model based on the National Voluntary Guidelines
+Being a global pharma leader with 36,000+ employees
+worldwide, 40+ manufacturing sites, and 100+ markets
+served, we at Sun Pharma strongly believe that
+business and responsibility go hand in hand. Long-term
+growth can only be achieved when we conscientiously
+take care of all the three bottom lines - economic,
+environmental and social.
+Overview
+Business Responsibility Report
+Statutory Reports
+85 >>
+Whole-time Director
+Kalyanasundaram Subramanian
+Regards,
+This Business Responsibility Report (BRR) summarises our
+commitment to the community, environment and all our
+stakeholders. We welcome your feedback on this report as
+your insights will help us take more responsible steps on
+this ongoing journey.
+Waste management, conservation measures, increasing
+efficiency, green energy and implementing Clean
+Development Mechanism (CDM) projects at our facilities
+are some of the measures we employ to reduce our burden
+on the environment. In FY20, we generated approximately
+1.6 Million kWh of clean energy.
+A robust EHS policy enunciates our commitment to create
+a safe and healthy workplace, and a clean environment
+for employees and the community. The policy ensures
+that we manufacture our products safely and in an
+environmentally responsible manner. For that, we follow
+the highest international standards in plant design,
+equipment selection, maintenance, product development
+and operations.
+Environment Wellness
+Our focus areas in CSR interventions are healthcare,
+education, rural development, sanitation, environment
+conservation, drinking water and disaster relief. During the
+outbreak of Novel Corona Virus, we committed donation of
+medicines and hand sanitisers to support India's COVID-19
+pandemic response. Along with awareness generation
+programmes, we also distributed food packets in the
+rural communities.
+By continuing to enhance our Corporate Social
+Responsibility (CSR) efforts and simultaneously partnering
+with Government and Non-Government organisations, we
+are enhancing the quality of life of the local communities.
+In FY20, we invested 43.71 Million for the implementation
+of CSR programme and projects.
+Community Wellness
+Our all-encompassing HR Policy covers every aspect of
+employee management from recruitment to retention.
+Employee engagement, equality of opportunity, freedom
+of association, health & safety, recognition & recreation,
+and continuous learning are key principles of the policy.
+In FY20, 90% of our employees, including 18% of women
+employees were provided with safety and skill up-
+gradation training.
+with clear responsibilities and the opportunity to work on a
+variety of assignments.
+5
+3
+# Designation
+00179072
+a grievance redressal
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Does the Company have
+9
+the policy/policies?
+mechanism related to the
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Does the company have in-
+house structure to implement
+8
+The policies have been formally communicated to internal stakeholders. The external stakeholders
+will be communicated in due course.
+P9
+P8
+P7
+Yes
+10
+policy/policies to address
+stakeholders' grievances
+related to the policy/policies?
+Has the policy been formally
+88
+• Nomination & Remuneration Committee
+• Audit Committee
+Dedicated board committees are in place to define and execute processes and policies that govern the core areas. The top
+management forms the part of these committees, which are:
+Board Committees
+The leadership at Sun Pharma including the board, apply their wealth of international exposure and global best practices,
+to make policies that drive responsible growth consistent with our values of integrity, humility, quality and accountability.
+Leadership
+The key enablers to ensure the consistent implementation of these principles are:
+• Delegation of responsibility across all facets of operations
+• Consistent value systems
+• Accountability
+• High levels of transparency
+The key principles of our corporate governance philosophy are:
+Our vision and values form the base of our policies and practices. Each role at every level of the employees, from the top
+to the bottom, is transparently defined and held accountable for its responsibilities. While we strive to add value to every
+stakeholder, including the planet and the people, there is no compromise on ethics and integrity.
+A successful business is built on the foundation of good principles. At Sun Pharma, we have institutionalised a robust
+governance structure.
+Principle 1 Ethics, Transparency and Accountability
+link: http://www.sunpharma.com/pdflist/alldocuments.
+It is published annually.
+The BR report for FY20 is a part of the annual report
+and can also be accessed through the
+Annual
+What is the hyperlink for viewing this report? How
+frequently it is published?
+Does the Company publish a BR or a Sustainability
+Report?
+Indicate the frequency with which the Board of
+Directors, Committee of the Board or CEO assess the
+BR performance of the Company. Within 3 months,
+3-6 months, annually, more than 1 year
+2
+1
+Governance related to BR
+3.
+It will be done in due course.
+stakeholders?
+communicated to all relevant
+internal and external
+Business Responsibility Report
+P6
+P5
+P4
+Yes
+Yes
+Yes
+Yes
+Do you have a policy or
+1
+P9
+P8
+P7
+P6
+P5
+P4
+P3
+P2
+P1
+2. Principle-wise (as per NVGs) BR policy/policies (Reply in Y/N)
+Mr. Kalyanasundaram Subramanian, Whole-time Director of Sun Pharma,
+oversees the BR implementation. The Company does not have a BR head,
+as of now.
+# e-mail id
+5
+#Telephone number
+4
+# Designation
+3
+# Name
+2
+# DIN number (if applicable)
+1
+b. Details of the BR head
+Kalyanasundaram Subramanian
+Whole-time Director
+Yes
+vii. Obtained the schedule of related party
+transactions during the year and balances at the
+year-end. Obtained and read the minutes of the
+audit committee meeting where in such related
+party transactions have been pre-approved prior
+by the audit committee.
+Yes
+Yes
+P3
+P2
+P1
+Has the policy been formally
+communicated to all relevant
+internal and external
+stakeholders?
+7
+Statutory Reports
+87 >>
+Indicate the link for the policy Copies will be made available on receipt of written request from shareholders.
+to be viewed online?
+The Board has appointed Mr. Kalyanasundaram Subramanian, Whole-time Director - Sun Pharma,
+to oversee the policy implementation.
+Does the company have a
+specified committee of the
+Board Director / Official to
+oversee the implementation
+of the policy?
+owner/CEO/ appropriate
+Board Director?
+been signed by the MD/
+Has the policy been approved All the policies have been approved by the Board and have been signed by the Managing Director.
+by the Board? If yes, has it
+standards? If yes, specify? (50
+words)
+6
+5
+4
+any national international
+All the policies are compliant with the respective principles of NVG guidelines.
+Does the policy conform to
+3
+stakeholders?
+with the relevant
+All the policies have been formulated in consultation with the Management of the Company and is
+approved by the Board.
+formulated in consultation
+Has the policy been
+2
+policies for...
+Yes
+Yes
+Obtained and read the policy adopted by the
+Company for related party transactions.
+Corporate office:
+Obtained necessary declarations from the
+directors of the Company.
+Institutional Investors:
+Secretarial Department
+Dividend, etc.
+Individual Investors & Queries Related to Shares/
+Registrars & Transfer Agent:
+16.17 Investor Correspondence:
+16) Khasra No.- 1335-1340, Near Epip Phase-1, Hill Top
+Industrial Area, Vill.-Bhatolikalan, P.O.-Barotiwala,
+Distt-Solan, Himachal Pradesh, India - 174103
+15) Sathammai Village, Karunkuzhi Post, Maduranthakam
+T.K. Kanchipuram Dist. Tamil Nadu - 603 303.
+14) Pharma Manufacturing Industrial Area 3 A.B. Road,
+Dewas-455001, Madhya Pradesh
+13) Plot No. K - 5,6,7, Ghirongi Industrial Area, Malanpur,
+Dist. Bhind, Madhya Pradesh
+12) A-41, Industrial Area, Phase VIII-A, Sahibzada Ajit
+Singh Nagar, Mohali-160071 (Punjab)
+11) Village Toansa, P.O. Railmajra Distt.
+Nawansahar-144533 (Punjab)
+10) Village & PO Ganguwala, Tehsil Paonta Sahib-173025,
+Distt. Sirmour, Himachal Pradesh
+9)
+Plot No. B-2 Madkaim Industrial Estate, Ponda, Goa
+A-7 & A-8, MIDC Industrial Area, Ahmednagar - 414
+111, Maharashtra.
+8)
+Plot No. Z/15, Sez-1, Po. Dahej, Taluko vagra, Dist.
+Bharuch, Gujarat.
+7)
+Plot No. 817/A, Karkhadi - 391 450, Taluka: Padra,
+Dist. Vadodara, Gujarat.
+Halol-Baroda Highway, Near Anand Kendra, Halol,
+Dist. Panchmahal- 389350 Gujarat.
+Plot No. 4708, GIDC, Ankleshwar - 393 002, Gujarat.
+Plot No.24/2 and No.25, GIDC, Phase- IV, Panoli - 395
+116, Dist. Bharuch, Gujarat.
+6)
+5)
+4)
+3)
+2) Survey no. 259/15, Dadra - 396191, U.T. of D. & NH.
+1) Survey No.214 and 20, Govt. Industrial Area, Phase-II,
+Piparia, Silvassa - 396 230, U.T. of D & NH.
+Mr. Nimish Desai
+Nodal Officer
+(for the purpose of IEPF)
+Mr. Sunil Ajmera, Company Secretary
+Bank Facility (Short-Term)
+Bank Facility (Long-Term)
+Commercial Paper
+Bank Facility (Short-Term Scale)
+Long-Term/Short-Term Borrowing
+Commercial Paper
+Instrument Type
+CRISIL Limited
+ICRA Limited
+Rating Agency
+16.18 List of all credit ratings
+Annual Report 2019-20
+The Transformation Journey
+<80
+Email: secretarial@sunpharma.com
+Direct no. (+91 22) 4324 2231
+Telephone: (+91 22) 4324 4324,
+Western Express Highway, Goregaon (E), Mumbai - 400063
+16.16 Plant locations as on March 31, 2020:
+Sun House, Plot No. 201 B/1,
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324,
+Direct no. (+91 22) 4324 2778
+Email:nimish.desai@sunpharma.com
+Sun House, Plot No. 201 B/1,
+Sun Pharmaceutical Industries Limited
+Email: secretarial@sunpharma.com
+Direct no. (+91 22) 4324 2230
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324,
+Sun House, Plot No. 201 B/1,
+Sun Pharmaceutical Industries Limited
+E-Mail: rnt.helpdesk@linkintime.co.in/sunpharma@linkintime.co.in
+Fax No.: +91 22 49186060
++91 22 49186000
+C 101, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai (INDIA) - 400083
+Tel. No.: +91 22 49186270 /
+Unit: Sun Pharmaceutical Industries Limited,
+Link Intime India Private Limited,
+Sun Pharmaceutical Industries Limited
+The Company is exposed to foreign exchange risks
+emanating from our business, assets and liabilities
+denominated in foreign currency. In order to hedge this
+risk, the Company proactively uses hedging instruments
+e.g. forward contracts, options and other simple derivatives
+from time to time. The Company does not have any
+significant exposure on commodities directly.
+16.15 Disclosure of commodity price risk or foreign
+exchange risk and commodity hedging activities
+Corporate Governance Report
+The status of outstanding unclaimed shares in
+the Unclaimed Share Suspense Account of the
+Company is as under:-
+Outstanding Unclaimed Shares
+Our Company's equity shares are fairly liquid and are
+actively traded on National Stock Exchange of India Ltd.,
+(NSE) and The BSE Ltd. (BSE). Relevant data for the average
+daily turnover for the FY20 is given below:
+Liquidity:
+About 99.66% of the outstanding Equity shares have been
+dematerialised up to March 31, 2020. Trading in Shares of
+the Company is permitted only in dematerialised form.
+16.13 Dematerialisation of Shares
+Others
+IEPF
+Foreign Portfolio Investor (Corporate)
+Trusts
+NRIS/OCBs
+Directors
+Indian Public
+Private Corporate Bodies
+Particulars
+Banks/Financial Institutions and Insurance Companies
+Indian Promoters and Persons acting in Concert
+Annual Report 2019-20
+54.69
+0.42
+0.05
+10.94
+8.54
+3.63
+7.70
+0.11
+0.40
+0.71
+12.81
+(%)
+Mutual Funds and UTI
+Rating
+No. of equity
+300
+Statutory Reports
+79 »
+*The voting rights in respect of these shares shall remain frozen till the
+claim of the righteous shareholders is approved by the Company.
+130716
+296
+Aggregate number of shareholders
+and the outstanding shares lying in
+the Unclaimed Suspense Account as
+on March 31, 2020.
+Number of shareholders to whom
+shares were transferred from the
+Unclaimed Suspense Account during
+the said period from April 1, 2019 up
+to March 31, 2020.
+The details of Number of Stock Options outstanding as on
+March 31, 2020, are provided in the Annexure to the Board's
+Report and is available on the website of the Company.
+Outstanding Stock Options
+The Company does not have any outstanding GDRs/ADRs/
+Warrants/Convertible Instruments as on March 31, 2020.
+16.14 Outstanding GDRs/ADRs/Warrants or any
+Convertible instruments, conversion date and likely
+impact on equity:
+(Source: Compiled from data available on NSE and BSE website)
+3164
+4
+No. of
+Shareholders
+3164
+Number of shareholders who
+approached the Company for
+transfer of shares from the said
+Unclaimed Suspense Account during
+the period from April 1, 2019 up to
+March 31, 2020
+2968.56
+2801.65
+166.91
+Aggregate number of shareholders
+and the outstanding shares lying in
+the Unclaimed Suspense Account as
+on April 1, 2019.
+BSE + NSE
+7161.00
+6759.57
+NSE
+BSE
+401.43
+(* Million)
+vi.
+(in Thousands)
+In no. of shares
+shares of
+Re.1/- each
+133880*
+4
+[ICRA] A1+
+In value terms
+CRISIL A1+
+The Management along with the Board of Directors
+are also responsible for ensuring that the Company
+complies with the conditions of Corporate Governance
+as stipulated in the Listing Regulations, issued by the
+Securities and Exchange Board of India.
+The preparation of the Corporate Governance Report
+is the responsibility of the Management of the
+Company including the preparation and maintenance
+of all relevant supporting records and documents. This
+responsibility also includes the design, implementation
+and maintenance of internal control relevant to
+the preparation and presentation of the Corporate
+Governance Report.
+3.
+2.
+Management's Responsibility
+The Corporate Governance Report prepared by Sun
+Pharmaceutical Industries Limited (hereinafter the
+"Company"), contains details as specified in regulations
+17 to 27, clauses (b) to (i) of sub - regulation (2) of
+regulation 46 and para C, D, and E of Schedule V of
+the Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015, as amended ("the Listing Regulations")
+('Applicable criteria') for the year ended March
+31, 2020 as required by the Company for annual
+submission to the Stock exchange.
+1.
+Sun Pharmaceutical Industries Limited
+The Members of
+Independent Auditor's Report on compliance with the conditions of Corporate Governance as per provisions
+of Chapter IV of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
+Regulations, 2015, as amended
+Annual Report 2019-20
+82
+Place: Mumbai
+Date: 27th May 2020
+UDIN: A049008B000288467
+COP No.: 20120
+Mem. No: 49008
+Partner
+Alpeshkumar Panchal
+Practising Company Secretaries,
+For, KJB & CO LLP
+is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the
+management has conducted the affairs of the Company.
+management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate
+Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the
+25-05-2018
+00004612
+14-11-2017
+Auditor's Responsibility
+00291126
+4.
+6.
+[ICRA] AAA (Stable)/ [ICRA] A1+
+[ICRA] A1+
+Independent Directors meeting.
+(i)
+(h) Corporate Social Responsibility Committee
+meetings; and
+Committee meetings;
+(g) Corporate Governance and Ethics
+Risk Management Committee meetings;
+(f)
+(e) Stakeholders Relationship Committee
+meetings;
+(d) Nomination and Remuneration Committee
+meetings;
+Annual General Meeting (AGM);
+(c)
+(a) Board of Directors meetings;
+Obtained and read the minutes of the following
+committee meetings / other meetings held April
+01, 2019 to March 31, 2020:
+Obtained and read the Register of Directors as
+on March 31, 2020 and verified that atleast one
+independent woman director was on the Board of
+Directors throughout the year;
+Obtained and verified that the composition of the
+Board of Directors with respect to executive and
+non-executive directors has been met throughout
+the reporting period;
+Read and understood the information prepared
+by the Company and included in its Corporate
+Governance Report;
+V.
+iv.
+iii.
+ii.
+i.
+The procedures selected depend on the auditor's
+judgement, including the assessment of the risks
+associated in compliance of the Corporate Governance
+Report with the applicable criteria. Summary of
+procedures performed include:
+7.
+We have complied with the relevant applicable
+requirements of the Standard on Quality Control (SQC)
+1, Quality Control for Firms that Perform Audits and
+Reviews of Historical Financial Information, and Other
+Assurance and Related Services Engagements.
+We conducted our examination of the Corporate
+Governance Report in accordance with the Guidance
+Note on Reports or Certificates for Special Purposes
+and the Guidance Note on Certification of Corporate
+Governance, both issued by the Institute of Chartered
+Accountants of India ("ICAI"). The Guidance Note on
+Reports or Certificates for Special Purposes requires
+that we comply with the ethical requirements of the
+Code of Ethics issued by the Institute of Chartered
+Accountants of India.
+Pursuant to the requirements of the Listing
+Regulations, our responsibility is to provide a
+reasonable assurance in the form of an opinion
+whether, the Company has complied with the
+conditions of Corporate Governance as specified in the
+Listing Regulations.
+5.
+13-02-2014
+(b) Audit Committee meetings;
+14-02-2017
+We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of the Sun
+Pharmaceutical Industries Limited having CIN L24230GJ1993PLC019050 and having registered office at SPARC, Tandalja,
+Vadodara Gujarat - 390012 (hereinafter referred to as 'the Company'), produced before us by the Company for the
+purpose of issuing this certificate, in accordance with Regulation 34(3) read with Schedule V para C sub clause 10(i) of
+the Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015.
+Add: SPARC, Tandalja, Vadodara Gujarat - 390012
+CIN: L24230GJ1993PLC019050
+Sun Pharmaceutical Industries Limited
+The Member of
+To,
+(pursuant to Regulation 34(3) and schedule V para C clause (10) (i) of the SEBI (Listing Obligation Disclosure requirement)
+Regulation, 2015)
+CERTIFICATE
+Corporate Governance Report
+Statutory Reports
+81 >>>
+Dilip S. Shanghvi
+Managing Director
+(DIN: 00005588)
+For Sun Pharmaceutical Industries Ltd.,
+In our opinion and to the best of our information and according to the verifications (including Directors Identification
+Number (DIN) status at the MCA portal www.mca.gov.in) as considered necessary and explanations furnished to us by
+the Company & its officers, we hereby certify that none of the Directors on the Board of Directors of the Company as
+sated below for the Financial year ending on 31st March 2020 have been debarred or disqualified from being appointed or
+continuing as Directors of the Companies by the Securities Exchange and Board of India, Ministry of Corporate affairs or
+any such other Statutory Authority.
+Date: May 27, 2020
+DECLARATION OF COMPLIANCE WITH CODE OF CONDUCT FOR THE YEAR ENDED MARCH 31, 2020
+CRISIL AAA/ Stable
+ANNEXURE 'A' TO CORPORATE GOVERNANCE REPORT
+Sailesh T. Desai
+Whole-time Director
+(DIN: 00005443)
+For and on behalf of the Board
+Dilip S. Shanghvi
+Managing Director
+(DIN: 00005588)
+Date: May 27, 2020
+Place: Mumbai
+No revisions in credit rating during the
+FY20
+No revisions in credit rating during the
+FY20
+Remarks
+CRISIL A1+
+06809515
+I, Dilip S. Shanghvi, Managing Director of Sun Pharmaceutical Industries Limited ("the Company") hereby declare that,
+to the best of my information, all the Board Members and Senior Management Personnel of the Company have affirmed
+their compliance and undertaken to continue to comply with the Code of Conduct laid down by the Board of Directors
+of the Company.
+Director Identification
+Number (DIN)
+ANNEXURE 'B' TO CORPORATE GOVERNANCE REPORT
+in the Company
+31-01-1994
+00005561
+01-03-1993
+00005588
+29-05-2012
+05299764
+8. Gautam Bhailal Doshi
+Vivek Chaand Sehgal
+Date of Appointment
+7.
+00005443
+Rekha Sethi
+6.
+Kalyanasundaram Subramanian
+25-03-1999
+Sailesh T. Desai
+Sr.
+00179072
+4.
+Name of the Directors
+No
+1.
+Sudhir V. Valia
+Israel Makov
+2.
+Dilip S. Shanghvi
+5.
+3.
+29.0
+8.7
+Property, plant, equipment and other intangible assets (at cost) includes Capital work-in-progress & Intangible assets under development
+** Carrying value of property, plant, equipment and other intangible assets includes Capital work-in-progress & Intangible assets under
+development
+11.1
+15.7
+12.1
+* During the FY14, the Company issued bonus shares in the ratio of one equity share of 1 for every share held.
+The Company had adopted Ind AS accounting standard w.e.f April 1, 2016 with prior period restated from April 1, 2015. Hence, FY16 onwards the
+financials are reported as per Ind-AS and are not strictly comparable with previous years.
+18.9
+* During the FY16, the Company's equity shares increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with
+the Company, wherein 0.80 equity share of 1 each of the Company have been allotted to the shareholders of RLL for every 1 share of *5 each
+held by them.
+25.7
+15.2
+28.8
+Earning per share-Diluted (In *)*
+12.1
+15.7
+11.1
+8.7
+29.0
+18.9
+Annual Report 2020-21
+18.9
+3
+Donation of COVID-19 medicines and other items like PPE
+kits, masks, sanitisers, gloves, food items, etc.
+CARE
+and elective surgeries were postponed in many cases. Online
+medical consultation could only partly compensate for face-to-
+face interactions. This led to lower demand for pharmaceutical
+products in the first half of the year and a gradual recovery was
+witnessed only in the second half, as governments lifted the
+lockdown restrictions.
+Corporate Overview
+Managing Director's Message
+4
+FY21 was a unique year. It witnessed the full brunt of the
+COVID-19 pandemic across the global economy and various
+sectors. Governments globally were forced to resort to stringent
+lockdowns/restrictions to prevent the spread of the pandemic,
+which were gradually relaxed in the second half of FY21.
+Being a supplier of essential products, the pharmaceutical
+industry continued to manufacture and supply pharmaceutical
+products. However, the lockdowns across the countries resulted
+in temporary closure of doctor clinics, restrictions on travel
+of the medical representatives, and a significant reduction in
+patient visits to the doctor's clinic. Non-critical treatments
+FY21 HIGHLIGHTS
+18.9
+5.
+Enhancing supply of multiple therapeutics used in the
+treatment of COVID-19 and associated ailments, such as
+Remdesivir, Favipiravir, Itolizumab, Liposomal Amphotericin
+B, Hydroxychloroquine, etc.
+4.
+Focus on the safety and well-being of employees
+Sun Pharmaceutical Industries Limited
+3.
+2.
+1. Ensuring continuous supply of medicines and maintaining
+continuity of the supply chain
+Sun Pharma has focused on a multi-pronged approach to
+overcome the challenges of the COVID-19 pandemic. The
+Company has focused on:
+COVID-19 RISK RESPONSE
+Governments across the world have increased spending on
+healthcare to counter the pandemic. There is also an increasing
+realisation in middle and low income economies that healthcare
+related investments need to be increased, which will lead to
+better/earlier diagnosis and appropriate treatment for patients.
+Another area of focus is making the supply chain resilient. This
+will require striking a pragmatic balance between outsourcing
+and self-sufficiency. Recognising the important role of the
+pharmaceutical industry and to strengthen its competitiveness,
+the Government of India has floated Production-Linked
+Incentive (PLI) Schemes. The objective of these schemes is
+to enhance India's manufacturing capabilities to meet global
+scale apart from encouraging higher investment in R&D for
+the development of innovative and complex products that will
+enable the Indian pharmaceutical industry to meet the global
+demand of pharmaceutical products.
+The COVID-19 pandemic has disrupted economies across the
+world and the pharmaceutical industry is at the forefront in
+the fight against the global pandemic. The industry has quickly
+adapted itself to the changed dynamics and has ensured
+continuity of supply so that patients continue to get access
+to their medications. The industry has also stepped in to
+supply medicines for the treatment of COVID-19 symptoms
+and other associated ailments. Some of the pharmaceutical
+companies have developed COVID-19 vaccines in record time.
+The pandemic is accelerating a significant change across the
+healthcare ecosystem in various countries and forcing public
+and private health systems to adapt and innovate at a pace like
+never before.
+Dear Shareholders,
+Dilip S. Shanghvi
+Managing Director
+Most of our businesses have recorded growth
+for FY21 despite the challenges related to
+the global COVID-19 pandemic. Our India
+business outperformed the average industry
+growth. We are also enthused by the growth
+in our global specialty business. We believe
+that all our businesses are well positioned
+and our endeavour will be to grow the overall
+business. We also expect the momentum for
+our global specialty business to continue.
+Managing Director's Message
+Increased focus on use of technology tools to facilitate
+business
+15.2
+Investments
+25.7
+Net current assets
+Carrying value of property, plant &
+equipment and other intangible assets**
+Property, plant & equipment and other
+intangible assets (at cost)**
+Reserve and surplus
+Equity share capital
+Financial position
+6.5
+6.1
+6.9
+8.6
+1,036 1,036 2,071 2,071 2,407 2,399 2,399 2,399 2,399 2,399
+7.6
+7.2
+6.5
+6.3
+5.6
+c) % of sales
+6,616 9,862 18,373 22,242 21,459 20,669 19,129 19,252 21,028
+4,088
+b) Revenue (excluding depreciation)
+It is against this backdrop that we reported a 2.5% growth in
+our overall revenues which stood at 331 Billion for FY21. Last
+year's sales included a one-time special business in the US and
+hence, while the US business showed a decline, all our other
+businesses have recorded growth for the full year despite the
+challenges related to the global COVID-19 pandemic.
+471
+8.3
+28.8
+121,322 148,862 183,178 278,009 327,418 363,997 380,742 411,691 450,245 462,229
+29,295 45,145 49,827 96,848 124,130 149,404 157,111 172,919 175,858 168,322
+Earnings per share-Basic (in *)*
+split) (in *)*
+12.1
+15.7
+11.1
+8.7
+29.0
+18.9
+18.9
+13.1
+54,269 75,763 86,505 143,616 187,212 217,315 238,073 271,424 298,549 308,582
+12.4
+Earnings per share (adjusted for bonus/
+2,407 2,399 2,399 2,399 2,399 2,399
+1,036 2,071 2,071
+1,036
+Number of shares (in Million)
+Stock information
+86,618 126,969 135,488 167,973 150,666 117,716 137,296 159,477 142,965
+18,299 11,919 71,429 79,025 101,431 96,125
+76,749
+22,129 24,116 27,860 35,028
+11.0
+Our EBITDA for the year grew by 25.5% driven by better
+product mix, efficiency initiatives and reduced marketing, selling
+and distribution and travelling expenses across markets. Some
+of these cost savings can be termed as temporary in nature and
+are mainly related to the pandemic restrictions and may reverse
+over a period of time as the COVID-19 situation normalises.
+6
+For FY21, India formulation sales stood at *103 Billion, up 6.5%
+and accounted for about 31% of overall revenues. Our India
+business has outperformed the average industry growth, driven
+by our leading presence in chronic segments coupled with our
+strong brand equity with doctors. As per AIOCD AWACS March
+2021 data, we have witnessed an increase in our market share to
+8.2% on MAT basis compared to 8.1% in the previous year.
+As per SMSRC data for February 2021, Sun Pharma is ranked
+No. 1 by prescriptions with 10 different classes of doctors.
+Despite the COVID-19 pandemic, we continued our new
+launches momentum with 96 new introductions in India.
+Corporate Overview
+Annual Report 2020-21
+Rama Bijapurkar
+Additional Independent
+Director (appointed with
+effect from May 21,
+2021)
+Dr. Pawan Goenka
+Additional Independent
+Director (appointed with
+effect from May 21,
+2021)
+Rekha Sethi
+Non-executive and
+Independent Director
+Non-Independent Director
+Sudhir V. Valia
+Non-executive and
+Dilip S. Shanghvi
+Managing Director
+and Non-Independent
+Director
+Chairman, Non-executive
+Israel Makov
+Board of Directors
+Sun Pharmaceutical Industries Limited
+Managing Director
+Dilip Shanghvi
+Warm regards,
+We are also thankful for your support as a shareholder and we
+hope that you will continue to repose your confidence in us in
+the future as well.
+Our employees have put in extraordinary efforts during the
+past year to ensure business continuity despite the multiple
+disruptions resulting from the COVID-19 pandemic and
+lockdowns. We have been able to maintain adequate supply of
+our products in various markets while simultaneously ensuring
+overall productivity without compromising on safety protocols.
+We are grateful to our Board of Directors for their guidance
+and support in these uncertain times.
+During the year, we continued our efforts to improve efficiencies
+across the organisation. Enhancing manufacturing efficiencies,
+optimising manufacturing footprint, rationalising generics R&D
+investments and reducing fixed costs are some of the areas
+targeted for efficiency improvement.
+FOCUS ON IMPROVING EFFICIENCIES
+Adherence to global cGMP standards is a key priority for us.
+Pharmaceutical manufacturing units need to be constantly
+upgraded to ensure compliance with global cGMP norms.
+We have an unwavering focus on 24x7 compliance to ensure
+continuity of supplies to our customers and patients worldwide.
+During the year, due to the travel restrictions related to
+the pandemic, we did not undergo any USFDA audit. For
+our Halol facility, which was classified as an "Official Action
+Indicated (OAI)" in March-2020, we have already completed
+all the corrective actions required to get the facility back
+into compliance and are awaiting a re-inspection from the
+USFDA. However, due to the ongoing COVID-19 pandemic and
+associated travel restrictions, the re-inspection is delayed.
+Managing Director's Message | Board of Directors
+Sailesh T. Desai
+Whole-time Director
+Kalyanasundaram
+Subramanian
+484
+Dr. Pradeep Sanghvi
+Executive Vice-President,
+Head US R&D
+Dr. Sapna Purohit
+Senior Vice-President,
+Head of Human Resources
+Dr. Azadar H. Khan
+Senior Vice-President,
+Corporate Relations and
+CSR, India Regulatory
+Affairs
+Aalok Shanghvi
+Executive Vice-President,
+Head - Emerging Markets
+Head - Global Generics
+R&D, Business Development
+C. S. Muralidharan
+Chief Financial Officer
+Anilkumar Jain
+CEO - API Business
+Davinder Singh
+Executive Vice-President,
+Sun Global Operations
+Focus on improving return ratios
+8
+Abhay Gandhi
+Leadership Team
+Sun Pharmaceutical Industries Limited
+CARE
+7
+Independent Director
+Gautam Doshi
+Non-executive and
+Independent Director
+Non-executive and
+Vivek Chaand Sehgal
+Whole-time Director
+CEO - North
+America
+6.
+Increased investments in IT to facilitate business and digital
+transformation
+5.
+5
+Annual Report 2020-21
+Presented clinical data analysis for ODOMZO and
+LEVULAN KERASTICK - Long-term analyses of the
+ODOMZO clinical study confirmed that treatment with
+ODOMZO provided clinically meaningful outcomes
+to patients with locally advanced basal cell carcinoma
+(laBCC) who were taking common concomitant medicines,
+such as medicines for cardiovascular, inflammatory and
+auto-immune diseases. For LEVULAN KERASTICK +
+BLU-U, a post hoc analysis of the Phase 3 trial showed
+significantly greater clearance of lesions and a significantly
+larger percent of cumulative disease area cleared with no
+clinically significant adverse events.
+4.
+year, Sun Pharma entered into an exclusive licensing and
+distribution agreement for ILUMYA™ with Hikma for the
+Middle East & North Africa (MENA) region.
+Expanding market presence for ILUMYA - During the
+3.
+Launched ILUMYAⓇ in Japan
+2.
+Key initiatives during the year for the specialty business include:
+Presented positive results from the ILUMYAⓇ five-year
+study, which demonstrated that patients with moderate-to-
+severe plaque psoriasis who continued to receive ILUMYAⓇ
+through five years of continuous treatment, maintained
+consistent and extensive skin clearance with no new safety
+issues, regardless of baseline level of skin disease, age or
+background illnesses.
+Sun Pharmaceutical Industries Limited
+CARE
+1.
+The first half of FY21 witnessed temporary closure of doctor
+clinics in the US because of the lockdown restrictions (to
+counter the pandemic), resulting in reduction in patient footfalls
+and postponement of certain treatments. This impacted our
+specialty sales in the first half, including sales of llumya, Cequa
+and Levulan. It also impacted the ramp-up of Absorica LD, which
+we had launched in February 2020. The lockdown restrictions
+were gradually lifted in the second half, resulting in a recovery
+in our specialty sales. Post the close of the year, a generic for
+Absorica entered the market in April 2021.
+We are enthused by the momentum of our global specialty
+business which grew by 11% to US$475 Million during the
+year despite the various challenges resulting from the global
+pandemic. Global llumya sales grew by 51% over last year to
+touch US$143 Million in FY21.
+SPECIALTY BUSINESS PERFORMANCE
+We continue to invest in R&D related to our global generic
+business, for developing and filing products across markets.
+At Sun Pharma, we have multiple R&D centres and a strong
+R&D team to cater to these requirements. We continue to be
+disciplined in identifying future R&D projects for the US generics
+market, with the focus being on developing complex products,
+which may attract less competition.
+specialty products. Some of the clinical trials for our specialty
+products witnessed a delay of a few months during the year
+due to the pandemic, and have gained momentum after the
+lockdowns were lifted gradually. Investments for developing the
+long-term specialty pipeline are expected to continue.
+Our R&D investments for the year were approximately *21
+Billion at 6.5% of overall sales. During the year, we continued
+our R&D efforts to develop complex generics and innovative
+RESEARCH & DEVELOPMENT (R&D)
+Our sales in the rest of world (ROW) markets grew by 6.6%
+for the year, driven by some key Western European markets,
+Canada and Australia.
+Revenues in the US declined by about 4% to 101 Billion and
+accounted for approximately 30% of our consolidated revenues
+for FY21. Despite the challenges of the pandemic, we witnessed
+a ramp-up in sales of our specialty products for the year. The
+generics business continued to face price erosion, driven by
+the competitive intensity amongst manufacturers, buying
+consortium pressures and a higher pace of generic approvals
+from the USFDA. Our subsidiary, Taro, recorded about 15%
+decline in overall revenues to US$549 Million for the year.
+We grew by 5% in Emerging Markets (EM) for the year.
+The Y-o-Y depreciation of some EM currencies has reduced
+our reported growth. The constant currency growth for EM
+revenues was about 6.4% for the year.
+The field force expansion undertaken in Q4 of last year, was
+completed during the year and the new medical representatives
+have commenced their field work. Our field force strength now
+stands at 10,900+.
+PROGRESS ON SPECIALTY INITIATIVES
+OPERATIONAL PERFORMANCE
+5. Update on specialty R&D pipeline - During the year, we
+initiated multiple clinical trials for our specialty portfolio:
+b.
+Continued focus on cost and operational efficiency
+4.
+Supply chain continuity and inventory optimisation
+3.
+Safety and well-being of employees including facilitation
+of COVID vaccination for employees and their immediate
+family
+2.
+Business growth
+1.
+Top priorities for FY22 will be:
+Generic pharmaceutical products have been an important
+component of the overall global healthcare system. The
+COVID-19 pandemic and the resulting increase in healthcare
+awareness further reinforces the role of generics in global
+healthcare management. Sun Pharma's strong positioning in
+the global generics industry and continued investments for the
+future will ensure that it remains a prominent player in
+this space.
+a. Ilumya - Commenced Phase-3 clinical trials for
+psoriatic arthritis; the Phase-2 clinical trial interim
+results released last year demonstrated that the trial
+met its primary endpoint with over 71% of patients on
+llumya achieving ACR20 response (20% improvement
+in symptoms) with no evident safety concerns.
+A successful Phase-3 trial, subject to regulatory
+approval, is likely to expand the addressable market
+for llumya.
+We will continue our R&D investments in developing a
+differentiated generic pipeline as well as in building our specialty
+pipeline in the coming years.
+OVERALL OUTLOOK
+During FY21, the Company has repaid debt of about US$580
+Million, the benefit of which is visible in the reduction in
+finance cost.
+DEBT REDUCTION
+CGMP COMPLIANCE
+GLP-1R (Glucagon-Like Peptide-1 Receptor) agonist
+Initiated Phase-1 clinical trials for treating diabetes.
+The pre-clinical data had demonstrated significant
+outcomes on various diabetic parameters, viz. glucose
+reduction, decrease in HbA1c, augmented insulin
+secretion, lowering of glucagon level, meaningful
+reduction in triglyceride levels and larger body weight
+reduction. We look forward to validating this data in
+human clinical trials.
+-
+MM-II - Commenced Phase-2 trials for a potential
+treatment for knee pain in patients with symptomatic
+knee osteoarthritis. MM-II is a product with empty
+multi-lamellar liposomes (first of its kind) for
+treatment of pain in osteoarthritis.
+SCD-044 Initiated Phase-2 clinical trials for a
+potential oral treatment for atopic dermatitis and
+moderate to severe plaque psoriasis. SCD-044 is a
+selective S1PR1 modulator resulting in better cardiac
+safety profile. The molecule met therapeutically
+relevant levels of lymphocytopenia at safe doses in
+Phase-1 study.
+d.
+C.
+Given the uncertainties of the pandemic in the near term, we
+have refrained from giving a guidance for FY22. However,
+we believe that all our businesses are well positioned and our
+endeavour will be to grow the business, notwithstanding the
+near-term uncertainties related to the COVID-19 pandemic. We
+also expect the momentum for our global specialty business to
+continue, if there are no more pandemic-related lockdowns in
+the regulated markets.
+718
+PHARMA
+783
+08
+Leadership Team
+10-98
+STATUTORY REPORTS
+Management
+10
+Discussion and Analysis
+34
+Board's Report
+64
+Board of Directors
+Corporate Governance
+Business Responsibility Report
+267 NOTICE
+Disclaimer
+Our Annual Report cover is a creative representation. Sun Pharma strictly follows all Covid-19 protocols and strongly
+recommends that everyone wears a mask during the pandemic.
+C
+A
+R
+E
+At Sun Pharma, CARE has always been integral
+to our purpose of providing high-quality
+medicines to help improve health and save lives.
+For us, in the times of a global pandemic, CARE
+assumed an altogether different and wider
+connotation - Continuous, Access, Resilience
+and Empathy. It became our compass north as
+we mobilised all the resources at our disposal
+to ensure un-interrupted supply of medicines
+to those who needed the most - patients,
+healthcare partners and the society at large.
+We did so by ensuring that all our
+manufacturing plants operated continuously
+while providing a safe and secure workplace
+to our employees, by deploying the best-
+available technologies. With severe restrictions
+on mobility and global supply chains in
+doldrums, our teams worked round-the-clock
+to ensure access to medicines, often facing
+multiple challenges. Further, we extended a
+helping hand in whatever way we could - from
+donating COVID-19 specific medicines, PPE,
+hand sanitisers to providing food items to the
+vulnerable sections.
+84
+07
+Managing Director's Message
+04
+CONTINUOUS
+RESILIENCE
+CA
+RA-
+R
+E
+ACCESS
+EMPATHY
+ANNUAL REPORT 2020-21
+Reaching People. Touching Lives.
+SUN
+1,679 1,819
+Contents
+01-09
+CORPORATE OVERVIEW
+99-266
+FINANCIAL STATEMENTS
+Standalone
+171 Consolidated
+02 Key Performance Indicators
+99
+03
+Ten-Year Financial Highlights
+With the pandemic further reinforcing
+the importance of generics in healthcare
+management, our global positioning and
+continued investments enabled us to
+demonstrate a resilient performance while
+staying true to our commitments as a
+responsible business. For now, we are focused
+on overcoming the pandemic in collaboration
+with governments and build a safer and
+healthier world with CARE at the core.
+Sun Pharmaceutical Industries Limited
+16
+Key Performance Indicators
+Carrying value of property, plant, equipment and other intangible assets includes Capital work-in-progress & Intangible assets under development
+2
+Corporate Overview
+Key Performance Indicators | Ten-Year Financial Highlights (Consolidated)
+Ten Year Financial Highlights
+(Consolidated)
+Particular
+Operating performance
+Revenue from operations
+Total income
+Net profit for the year (after minority
+interest)
+**
+FY12
+(* Million)
+FY21
+80,195 112,999 160,804 273,920 284,870 315,784 264,895 290,659 328,375 334,981
+84,910 116,880 166,326 279,397 291,453 322,016 273,282 300,914 334,735 343,337
+26,567 29,831 31,415 45,394 45,457 69,644 20,957 26,654 37,649 29,038
+R&D expenditure
+a) Capital
+362
+427
+556 1,178
+CARE
+FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
+The Company had adopted Ind AS accounting standard w.e.f April 1, 2016 with prior period restated from April 1, 2015. Hence, FY16 onwards the
+financials are reported as per Ind-AS and are not strictly comparable with previous years.
+4,449 7,042 10,418 19,550 23,025 23,138 22,489 19,847 19,736 21,499
+* During the FY14, the Company issued bonus shares in the ratio of one equity share of 1 for every share held.
+(Consolidated)
+* During the FY16, the Company's equity shares increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the
+Company, wherein 0.80 equity share of 1 each of the Company have been allotted to the shareholders of RLL for every 1 share of ₹5 each held by
+them.
+Total income
+(Million)
+Net profit after minority interest
+(* Million)
+Q7QJJ
+EEEEEEEE
+7 7 7 7 7 7 7
+R&D investment
+(* Million)
+\ / / \ \ / / / / / /
+(Million)
+Reserve & surplus
+(per share)
+(adjusted for bonus/split)*
+Earning per share
+ZZ ZZZZZ Z
+FY21
+(Million)
+ཁྐྲ སྦ་ རྒྱ  ི་ ལྷ་༔ ་ ཚེ་ ཌ  ྴ སྒ
+Carrying value of property, plant & equipment
+and other intangible assets*
+! ! ! ! ! ! ! ! !
+168,322
+• Customer Feedback Sessions
+Some of the means we use to communicate include:
+• Official Press Releases
+• Investor Presentations
+• Quarterly Reports
+• Annual Reports
+• Corporate Website
+• Vendor Meets
+We are answerable to our stakeholders and this
+accountability helps us maintain our integrity. Timely
+information is provided, and a considered response is
+sought, leading to meaningful communication and fruitful
+collaboration.
+Sun Pharmaceutical Industries Limited
+91
+Annual Report 2020-21
+Accountability
+• Government & Regulators
+• Vendors, Suppliers & Distributors
+• Dedicated Portals for Employees, Vendors and Field staff
+• Investors & Shareholders
+• Healthcare Professionals
+CARE
+• Participation in Independent Exhibitions
+Attending Investor
+Conferences
+Stakeholder Engagement
+Key areas of interest of the
+stakeholder group
+• Patients
+Virtual modes such as
+E-mail, telephonically
+Vendor meets
+/ third party
+manufacturer
+Supplier/vendor
+In-person meetings
+E-mail
+Regulator
+Social Media
+Investor presentations
+Annual/quarterly
+financial reports &
+earnings calls
+.
+Investor/ shareholder
+Stakeholder group
+How we engage
+We believe that those who are marginalised need more
+focus. So, we continuously and consistently plan and
+implement initiatives, which can alleviate their struggles and
+provide them well-being.
+We are thoughtful to the needs of all the stakeholders who
+are affected by our business, as those are the ones who
+support our operation. Each stakeholder is different, so is
+its need; and we are committed to responsibly balance the
+interests of all stakeholders.
+Responsibility
+Issuing specific event-
+based press releases
+• Neighbouring Communities
+Safety Risk Management
+Some of the key stakeholders identified by us are:
+⚫ EHS Culture Building
+• EHS Management System
+Key ingredients of our occupational health and safety
+approach:
+Statutory Reports
+Business Responsibility Report
+90
+We encourage reporting of incidents, including injuries and
+near misses, which enables us to be better prepared for the
+future. Safe work practices are endorsed and converted
+into SOPS/LEPs, while unsafe practices are identified and
+discontinued.
+We continue to devote our resources in imparting safety
+training, designed in such a way that each employee is
+aware of all the do's and don'ts of operational safety, right
+from prevention to emergency management. The reporting
+year saw the safety and skill up-gradation training of
+approximately 92% of our total employees, including 31% of
+permanent women employees.
+To counter the COVID-19 pandemic, we quickly adopted
+safe operating protocols in all our Plants, R&D centers and
+offices across the world.
+• Emergency Preparedness
+We have established ISO 14001:2015 compliant
+Environmental Management System and ISO 45001:2018
+(OHSMS) compliant Occupational Health and Safety
+Management System at our key manufacturing facilities.
+Health and Safety
+At present, there is a management-recognised employee
+association, which covers approximately 4% of our
+employee membership.
+We have always encouraged employees to communicate,
+whether individually or by forming an association. A union
+of employees that pursue the interests of its members,
+keeping in mind the overall business environment, is given
+its due importance.
+Freedom of Association
+harassment. We have a multi-cultural workforce, which is
+an advantage with varied skill set and experience. Diversity
+is nurtured by encouraging a fine amalgam of talent from
+different age groups, genders, cultural backgrounds etc.
+As of March 31, 2021, we had a total consolidated staff
+strength of over 37,000 people including permanent,
+temporary, and contractual employees. In India, we had
+28,007 employees, of which 1,455 were permanent women
+employees and 17 were permanent employees with
+disabilities.
+At Sun Pharma, merit is the only prerequisite to growth. We
+celebrate diversity and discourage bias, discrimination and
+Equal Opportunity
+•
+Health and safety of our employees is of paramount
+importance. Wellness of our workforce is ensured by our
+robust Environment, Health and Safety (EHS) policy and
+operating guidelines. We conduct our operations in the
+most responsible manner and cultivate a safety culture
+across the organisation. EHS performance is periodically
+reviewed at facility, regional and corporate levels to monitor
+the progress against EHS improvement plans.
+• Safety Inspections & Audits
+• Use of Personal Protective Equipment (PPE)
+⚫ EHS Promotional initiatives
+We prefer to include all stakeholders who are impacted
+by and who can influence our decisions and its
+implementation. Whether minor or major, internal or
+external, we have identified them and engage with them in
+a fair and transparent manner.
+Inclusivity
+• Responsibility
+• Accountability
+• Inclusivity
+Our stakeholder engagement mechanism has three key
+pillars:
+The repository of responses from internal as well as
+external stakeholders helps us in streamlining our policies,
+processes and products, while our sharing gives them a fair
+idea of our future direction.
+Over the years, we have focused on building strong
+and meaningful relationships with a diverse range of
+stakeholders. We believe that stakeholder centric
+approach is at the heart of enabling a socially relevant and
+future-oriented approach to business. Engagement with
+stakeholders improves decision-making and accountability.
+We have a comprehensive engagement mechanism in place
+to have a consistent and transparent dialogue with all our
+stakeholders. This not only helps in finding solutions to
+important matters, but also builds trust and understanding.
+Our stakeholder engagement mechanisms aim to foster
+inclusivity, accountability and responsibility. We have built
+customised engagement channels tailored to the distinct
+needs of each stakeholder groups. While we periodically
+engage with our stakeholders, in FY21 we engaged with
+our stakeholder through a structured approach with the
+objective of incorporating their inputs into our materiality
+assessment.
+Stakeholder Engagement
+Principle 4
+Our resilient employees have done a remarkable job
+of ensuring business continuity despite the multiple
+disruptions resulting from the COVID-19 pandemic and
+lockdowns. All our teams, including Manufacturing, Supply
+Chain, HR, IT, Finance, etc. have worked tirelessly to ensure
+overall productivity and adequate supply of our products.
+Covid-19 Response
+⚫ Family picnics to foster camaraderie
+• Long-service award to recognise the loyalty and
+commitment of employees
+• Special celebration to accord due recognition to the
+retiring employee
+Some of the other mechanisms include:
+Exceptional performance by employees is recognised
+promptly through various recognition schemes. Regional
+and functional awards enable the acknowledgement of
+employees' involvement and inputs towards the realisation
+of goals.
+Recognition motivates employees to put in their best
+efforts and recreation recharges the employees. Both these
+activities increase productivity of the employees and the
+efficiency of the organisation. A merit-based module for
+rewarding talent has been designed and various means for
+recreation are planned.
+Recognition & Recreation
+• Employees
+•
+Well-being initiatives
+Corporate governance
+Customer - B2B
+Employee
+In-person meetings
+E-mail
+Customer feedback
+sessions
+Employee focused
+web-portal
+E-mail
+Employee engagement
+survey
+Robust quality management system and
+pricing strategy based on enabling best
+outcomes for end-customers
+.
+Town-halls
+•
+Training, professional growth
+and development
+• Soft skill development.
+Employee recognition
+Work-life balance
+Senior Leadership
+In person meetings
+Fair remuneration
+Community development programs
+have been undertaken based on detailed
+need assessment studies. A systematic
+approach is employed to ensure
+positive development outcomes for the
+communities being served across the
+focus areas.
+CSR management system is periodically
+streamlined to enable enhanced
+responsiveness to community needs
+Programs have been designed that
+facilitate and encourage employee
+volunteering
+How we engage
+NGO
+Stakeholder group
+92
+Facilitate need-based engagement with
+vendors
+Digital interventions and management
+systems to monitor and execute timely
+payments
+Responsible supply chain strategy
+Tailored community development
+programs
+In person meetings
+Virtual modes such as
+E-mail, telephonically
+Community
+In person meetings
+Engagement through
+our NGO partners
+Statutory Reports
+Business Responsibility Report
+Key areas of interest of the
+stakeholder group
+•
+Employee volunteering
+Agile management process
+Community development
+programs with a focus
+on health, education,
+sanitation and infrastructural
+development
+• Product quality, access and
+pricing
+Our approach to managing expectations
+•
+.
+Sustainable and resilient
+•
+Energy Conservation
+Reduction in the consumption of energy is a win-win
+proposition. It positively impacts environment protection
+by lowering emissions and resource depletion as well as
+the financials by reducing operational costs and sourcing
+efforts. At Sun Pharma, interventions of different kind are
+executed to conserve as much energy as possible to reduce
+the environmental footprint. These interventions broadly
+focus on using energy more efficiently in the manufacturing
+processes and tapping technology to generate green
+energy. Our approach to energy management revolves
+around three thrust areas: monitor, decarbonise and
+minimise.
+Greener Operations
+Ensure compliance and roll out
+corrective measures in the event of a
+non-compliance
+Cost competitiveness enabled through
+operational excellence programs focused
+on manufacturing, workforce and supply
+chain optimisation.
+ensure product quality and safety
+aligned with stringent quality and safety
+management protocols.
+management team and the
+pharmacovigilance unit collectively
+Dedicated teams such as quality
+We are one among the 24 signatories to the India
+CEO's Forum on Climate Change, which is driven by
+Government of India's Ministry of Environment, Forest
+and Climate Change. The forum enables corporates to
+make commitments to reduce GHG emissions and share
+best practices to develop resilience and help India meet its
+obligations towards the Paris Agreement. As part of this
+initiative, we have pledged to undertake measures spanning
+six thematic areas. Our upcoming sustainability report will
+give more details on our climate action plan.
+A dedicated supply chain team oversees
+effective and responsibility management
+of the supply chain
+periodically in the form of annual report,
+quarterly reports, press releases and
+investor presentation.
+Transparent disclosures are made
+Governance mechanisms based on our
+core corporate values
+Our approach to managing expectations
+Timely payments
+Collaboration
+Regulatory compliance
+Community engagement
+Rural market penetration
+De-risk supply chain
+Product responsibility
+Business Performance
+Cost competitiveness
+EGS disclosures
+Regulatory compliance
+Responsible supply chain
+management
+This year onwards annual sustainability
+report will also be published.
+Our commitment to climate action
+At Sun Pharma, we are dedicated to build capabilities and
+leverage our innovation-oriented approach to protect and
+rejuvenate our natural ecosystem. Being India's leading
+pharmaceutical company, we actively work towards
+minimising our environmental footprint and contributing
+to global climate action efforts. Mounting environmental
+and climate change linked concerns have further prompted
+us to step-up our efforts in this regard. Over the years,
+the ethos of natural resource conservation has been
+progressively built into every facet of our business
+operation. Beyond eco-efficient operational innovation, we
+have also been cultivating an environmentally conscious
+mind set among our employees. We ensure strict adherence
+to all applicable environmental laws and regulations in our
+geographies of operation. While we ensure compliance,
+it is our constant endeavour to embrace a beyond
+compliance and proactive approach to environmental
+management. We have embraced an all-encompassing
+Environment, Health & Safety (EHS) policy that imbues
+our commitment to environmental conservation in our
+operational endeavours. Our environmental management
+system based on the concept of continuous improvement
+anchors our environmental stewardship. The management
+system enables an innovation-centric, participatory and
+locally customisable approach to achieving environmental
+performance excellence. Around 93% of our Indian facilities
+are ISO 14001:2015 (EMS) certified.
+Environment
+business operations
+R&D and innovation
+•
+Customised employee learning and
+development initiatives
+Curated employee welfare and
+recognition programs
+Annual appraisal and open feedback
+culture
+Active employee engagement
+Periodic business strategy review based
+on market dynamics and stakeholder
+inputs
+Capitalising on emerging technologies
+and continuously strengthening R&D
+capabilities
+For more details regarding this, please refer Principle 8 of this report.
+Principle 5
+Human Rights
+At Sun Pharma, we are dedicated to safeguard the
+fundamental human rights of all our employees, partners
+and other stakeholders. We believe in the universal and
+fundamental nature of human rights and ensure our
+workforce is aligned to this belief. Sun Pharma is hence a
+firm believer of the principle of human rights protection
+and adheres to it, in letter and spirit. Our commitment to
+human rights is substantiated by our Human Rights Policy
+which spans various principles ranging from freedom
+of association to freedom from harassment and applies
+across our operations. Our actions emanating from these
+policies speak louder than our intentions. Not only are we
+compliant with all the statutory laws and regulations, we
+have grievance redressal mechanisms in place for violations,
+if any. We have zero tolerance to child labour, forced labour
+or discrimination based on gender, caste, creed, religion,
+marital status, sexual orientation, among other factors. In
+the reporting year, there were no human rights violation
+complaints, relating either to child, forced and involuntary
+labour or discriminatory employment against the Company,
+or any sexual harassment complaint.
+We have robust procedures to mitigate violation of the
+fundamental human rights. Furthermore, we provide
+trainings to our employees to support awareness on our
+commitment to the protection of human right.
+Annual Report 2020-21
+93
+Sun Pharmaceutical Industries Limited
+CARE
+Principle 6
+Virtual modes such as
+E-mail, telephonically
+• Technical skill development
+A more engaged employee is more motivated to reach
+higher targets, meet customers' demands, develop
+innovative products and perform better to achieve the
+company's objectives. We ensure continuous engagement
+by active communication to understand employees'
+concerns and consistent mechanisms to address them.
+• Digitisation
+Pharma Research Laboratory
+We provided support to set-up a research laboratory at
+Agricultural Development Trust's College of Agriculture,
+Baramati for carrying out research in the areas of science,
+agriculture and dairy for the benefit of the community.
+The infrastructural development of this project entailed an
+investment of $25.00 Million.
+Community Healthcare
+We financially supported the Citizen Blood Donation
+Society at Vadodara, Gujarat for promoting blood donation.
+We are also running a Primary Health Centre at Toansa,
+Punjab enabling free medical benefits to the rural populace.
+In FY21, we invested 0.15 Million for such healthcare
+services in the community.
+Education Programmes
+Model School Development Project
+Sun Pharma takes initiatives to enhance the educational
+standards in identified schools under this project by
+improving basic educational facilities. The following
+activities were carried out during FY21:
+Through MHU, we are ensuring preventive vaccination
+and encouraging regular medical check-ups among the
+rural population. It is operational in 11 different locations
+covering 6 states of India - Gujarat, Tamil Nadu, Punjab,
+Himachal Pradesh, Madhya Pradesh and Maharashtra.
+During FY21, we touched 155,683 beneficiaries including
+126,234 curative treatments of patients through a total
+investment of 24.67 Million.
+• Infrastructure upgradation
+• School toilet construction project
+• Promoting quality education
+• Development of Anganwadi centres
+• Provision of drinking water for students
+• Rainwater harvesting in schools
+⚫ Skill development training
+The project helped 6,748 students and the community, with
+an investment of 10.75 Million.
+• Setting-up of digital classroom
+96
+Focussed on underserved and marginalised communities,
+the mobile healthcare services provide care in different
+health areas, such as maternal health, adolescent health,
+neonatal and infant health, awareness and health services
+for communicable and non-communicable diseases,
+improving reproductive health, immunisation, etc.
+Mobile Healthcare Unit (MHU)
+95
+Sun Pharmaceutical Industries Limited
+CARE
+Principle 8
+Equitable Development
+Equitable development is an approach for meeting the
+needs of underserved communities through policies and
+programmes that reduce disparities while fostering places
+that are healthy and vibrant.
+At Sun Pharma, our community development programmes
+are intended to contribute towards a better quality of life
+for the people and uplift the marginalised sections of the
+society. We are guided by our comprehensive Corporate
+Social Responsibility (CSR) Policy which has also been
+posted on our website. We undertake periodic community
+need assessments to identify areas of impact and further
+strengthen the objectives of our CSR programmes.
+Furthermore, projects are monitored by our CSR team
+through site visits, reports from implementation partners
+and village-level project committees.
+In FY21, we invested *269.50 Million (including
+administrative costs) for the implementation of CSR
+programmes and projects which focus on different thematic
+areas as per the needs identified in local communities and
+aligned with areas mentioned in the Schedule VII to the
+Companies Act, 2013 read with the Companies (Corporate
+Social Responsibility Policy) Rules, 2014.
+The focus areas are:
+Mobile healthcare services help in providing primary
+healthcare at the doorstep of neighbouring communities
+living in the vicinity of our manufacturing plant locations.
+These services are provided free of cost.
+• Healthcare Programmes
+• Environment Conservation Programmes
+• Drinking Water Projects
+• Covid-19 Relief Works
+• Rural Development Programmes
+Healthcare Programmes
+Cancer Sanatorium Institute, Wadala, Mumbai
+We contributed towards setting-up of the cancer treatment
+and chemotherapy facility at Wadala, Mumbai keeping in
+view the needs of cancer patients.
+The objective was to support the subsequent chemotherapy
+treatment of patients at the Hospital. The project will
+provide its services to the people from all sections of
+society. The project involved an investment of ₹100.00
+Million during FY21.
+• Education Programmes
+• Data and documentation management
+Business Responsibility Report
+Environment Conservation Programmes
+We produce a comprehensive, diverse and highly
+complementary portfolio of generic and specialty medicines
+targeting a wide spectrum of chronic and acute treatments.
+New cures are of no use to the people if the cost is
+prohibitive. We are trying to put our efforts in overcoming
+this affordability challenge.
+Another space we are investing in is to make these
+affordable medicines accessible to a larger footprint.
+Our presence in more than 100 countries helps us
+in being responsive to local treatment needs while
+continually improving our global product offering in a
+range of therapeutic segments including central nervous
+system (CNS), cardiology, diabetology, gastroenterology,
+ophthalmology, etc.
+Product Safety
+The nature of our business makes it imperative for us
+to view quality not only as a differentiator, but also as
+an elementary feature of our products. We have thus,
+incorporated pharmaco-vigilance SOPs to methodically
+examine, detect and gauge any adverse effects which may
+arise in or due to our products. This system results in the
+elimination of misfortunes at the initial phase itself.
+Annual Report 2020-21
+97
+Sun Pharmaceutical Industries Limited
+CARE
+Chronic Healthcare Products
+Being a customer-centric company as well as a global
+pharmaceutical leader, we keep pushing the envelope
+further in terms of product safety throughout our value-
+chain, with unrelenting vigilance of our R&D experts playing
+their part.
+Active Engagement
+We engage with our customers who are spread globally,
+through a two-way interactive process:
+Provide:
+We disclose detailed information about all our
+products, complying with all applicable labelling codes
+and specifications. We also deal with customers in a
+transparent and ethical manner, eliminating any form of
+miscommunication or misunderstanding. Our employees'
+engagement with the customer is governed through our
+Global Code of Conduct.
+Receive:
+Our consistent engagement provides us with valuable
+feedback from customers and helps us identify and
+address issues, if any. In the reporting year, although no
+formal survey was carried out, our medical representatives
+continued to seek suggestions in person, from doctors and
+pharmacists. Our 'Customer Centricity Policy' also directs
+our employees to be receptive towards customer's needs
+and concerns.
+In the last twelve years, no material case regarding
+dishonest trade practices or irresponsible advertising have
+been filed against Sun Pharma by any stakeholder
+98
+A comprehensive quality management system is in place to
+keep an all-inclusive and updated database of unfortunate
+events. Both healthcare and non-healthcare stakeholders
+can access the 'adverse impact reporting form' from our
+website. To encourage free and fair feedback, the reporter's
+identity is kept confidential and is diligently protected.
+After filtering the feedback received, the information is
+used for the systematic benefit-risk ratio assessment of the
+medicine.
+• Soliciting customers' feedback, insights and timely
+addressing their issues
+• Practising stringent quality standards to ensure safe,
+effective, and easy to use products
+• Delivering affordable medicines and increasing their
+accessibility
+Sun Pharma is committed towards environment
+conservation. In FY21, we executed many initiatives
+which included a green belt development project and a
+roadside plantation programme. Plantation and awareness
+generation activities were also carried out in schools and
+community for sensitising people towards the importance
+of conservation of environment.
+The programmes were implemented in Ahmednagar, Panoli,
+Toansa and Vadodara with an investment of 0.45 Million
+during FY21.
+Drinking Water Projects
+The projects focus on provision of safe and potable drinking
+water for the community. One such project involves
+rejuvenation of small water bodies in Abhetwa rural
+communities in Halol (Gujarat). We are also maintaining
+deep borewell based drinking water supply system at
+Toansa throughout the year.
+The projects are benefitting rural communities with a total
+investment of 0.60 Million during FY21.
+Covid-19 Relief Works
+Initiatives on prevention of Covid-19 in communities
+The outbreak of Covid-19 was declared as a pandemic by
+WHO. Along with awareness programme, the company
+also distributed medicines, sanitisers, food items,
+grocery articles, masks and all other required things to
+the communities. We also supported the setting up of a
+Covid-19 testing centre. For this, we invested *106.25
+Million during FY21.
+Setting up of Covid-19 Testing Centre
+We supported in setting up the Covid-19 Testing Centre
+at Ladakh. The Council of Scientific & Industrial Research
+(CSIR) and Institute of Integrative Medicine (IIM) from
+Jammu provided the training and logistics support for
+setting up the facility.
+The Administration of Ladakh is now taking care of the
+facility which is in self-sustainable mode.
+Donate a Plate Campaign
+Sun Pharma participated in the noble cause of 'Donate a
+Plate' campaign for the less privileged children and families
+during festivals. The participation helped in arranging meals
+for the migrant workers in the lockdown during the festival.
+We spent *0.30 Million on this cause.
+Provision of medicines to combat Covid-19 infection
+Sun Pharma provided 'Tocilizumab' injection for seriously
+ill Covid patients under treatment at District Hospital,
+Silvassa, Dadra and Nagar Haveli. We spent *0.62 Million
+for the medicines.
+Rural Infrastructure Development Projects
+Under these projects, we help rural communities by
+development of basic infrastructure facilities. Various
+projects that benefitted the communities included
+installation of traffic signals, maintenance of playgrounds,
+renovation of community centres, etc. We invested *0.70
+Million during FY21 for these development projects.
+Principle 9
+Customer Value
+All our operations and efforts finally result in a brand
+trusted worldwide by our customers. State-of-the-art
+plants, cutting-edge technology, robust processes and
+comprehensive policies deliver products that alleviate the
+pain of the patients and heal them. Our customer-centricity
+approach hence encompasses a gamut of propositions:
+Annual Report 2020-21
+• Gujarat Employers Organisation (GEO)
+Statutory Reports
+• The Federation of Indian Chambers of Commerce and Industry (FICCI)
+967,200
+133,166
+3,057
+490,477,900
+11,935
+Electricity (kWh)
+Gas (in '000 nm3)
+Furnace Oil (MT)
+HSD (L)
+Briquette (MT)
+Energy Usage:
+2,863,563 KL
+Water usage:
+Formulations: 25,116 million units
+Antimicrobial resistance (AMR)
+APIs: 3,928 ton
+Calculating our environmental performance per product
+poses unique challenges, owing to a diverse product
+portfolio and complex production processes. We, therefore,
+monitor and manage our total annual water and energy
+performance vis-à-vis our total annual production.
+For more details regarding our environment initiatives,
+please refer Principle 6 of this report.
+Our EHS policy is periodically updated and our performance
+is consistently reviewed, aiming for the highest international
+standards in plant design, equipment selection, maintenance
+and operations. The focus of our efforts is on minimising
+resource consumption and increasing process efficiency.
+Environment is vital to our sustainability as we are
+dependent on nature for our resources. Our EHS
+(Environment, Health and Safety) Policy, provides for
+the creation of a safe and healthy workplace and a clean
+environment for employees and the community. The policy
+is a commitment that we shall manufacture products safely
+and in an environmentally responsible manner.
+Enriching the Environment
+In our endeavour to enable impact across our business
+activities, we continue to augment responsible procurement
+initiatives across our supply chain. At Sun Pharma, we
+encourage local sourcing to strengthen our supply chain,
+increase flexibility of operations and reduce costs, among
+others. We also aim to reduce our environmental footprint
+associated with the global transportation of requisite
+materials. Additionally, we aim to encourage local sourcing
+to strengthen national skill sets through the transfer
+of knowledge and expertise, creating opportunities for
+suppliers to implement value-generating initiatives. In
+FY21, proportion of spending on local suppliers on indirect
+procurement stood at 95% while the direct procurement
+and services spending stood at 67% each.
+Our Commitment to Local Sourcing
+For more details regarding our community initiatives, please
+refer Principle 8 of this report.
+Production:
+We also invest in upskilling local talent and upgrading local
+suppliers. Quality of our products is not compromised as
+we raise the local capabilities to our benchmark standards.
+Credits are also advanced where necessary to enhance
+the capacity of the suppliers. Many of our facilities have
+identified and encouraged various such local vendors.
+Antimicrobial resistance occurs when microorganisms, such
+as bacteria, viruses, fungi, and parasites, change in ways
+that render the medications used to cure the infections they
+cause, ineffective. As a manufacturer of anti-infectives,
+we lay a lot of emphasis on the prevention of antimicrobial
+resistance. It is achieved by means of a sound technical
+design, operating procedures, training to employees and
+regular monitoring.
+For handling the product within the facility, we use latest
+technologies like integrated manufacturing systems / close
+loop transfer system / dust control system with scrubbers
+and HEPA terminal filters on the equipment exhausts
+/ vents which prevent release of any dust either in the
+workplace or in the surrounding area.
+• Federation of Gujarat Industries (FGI)
+• Leadership development
+• Culture building
+The ever-evolving world, unpredictable disruptions and
+the type of industry we are in requires that our employees
+continuously upgrade themselves on futuristic research,
+latest technologies and contemporary know-how to retain
+the competitive edge. At Sun Pharma, our employees are
+provided with opportunities to enhance their management,
+technical and soft skills through continuous training and
+development programmes. This may include putting them
+through in-house competency development mechanism or
+external training. Our training and development activities
+span across six key thematic areas:
+Continuous Learning
+Several two-way communication platforms are in place for
+employees to express themselves, know more about the
+organisation as well as raise queries. Employee feedback
+is promptly solicited and utilised to form policies that
+increases retention and improves productivity.
+Employee Engagement
+The key tenets of the policy are:
+The plant design and operating philosophy ensures that,
+neither the person in plant nor the environment around
+the facility is impacted due to the plant operations. We
+also run communication / awareness programmes for
+doctors in India which highlight the menace of AMR. The
+facilities manufacturing the antibiotics are qualified as Zero
+Liquid Discharge (ZLD) facilities implying that no liquid is
+discharged into the environment from these facilities.
+We nurture them by ensuring safe working conditions,
+providing advanced learning options and furthering career
+growth opportunities. Active engagement with employees
+across hierarchies enables camaraderie and feedback. Our
+evolving HR policies focus on 360° development of our
+employees and cover all requisites, right from recruitment
+to retention.
+Employee Well-being
+Principle 3
+CARE
+Sun Pharmaceutical Industries Limited
+89
+Annual Report 2020-21
+The treated water is reused & recycled within the plant as
+per Zero Liquid Discharge (ZLD) norm prescribed in the
+environmental license by local Government authority. Any
+antibacterial residue and/or hazardous wastes are sent to
+Government authorised incineration site for disposal.
+The persons working in the plant make use of required
+personal protective equipment as a means of safeguarding
+against any accidental exposure. The process effluent from
+operations is treated by means of specialised chemicals and
+bacteria that disintegrate the residual antibiotic product,
+which is further passed through double Reverse Osmosis
+process thereby ensuring absence of product in the treated
+effluent water.
+Employees are the most valuable assets of an organisation.
+They determine its success or failure. Our 37,000+ strong
+multi-cultural global workforce has ensured that all our
+businesses do well. Culturally they come from diverse
+backgrounds, but they are united with our common purpose
+and values.
+Statutory Reports
+Business Responsibility Report
+Our focused approach to resource conservation
+This reporting period, we recycled 628,089.75 KL of water
+across our manufacturing facilities. It is noteworthy that
+a large number of our facilities are Zero Liquid Discharge
+(ZLD). In terms of waste management focused initiatives,
+we recycled 2,993.61 MT and co-processed 1,693.78 MT
+of hazardous waste. We also recycled 8,117,975.3 MT and
+reused 50,099 MT of non-hazardous waste.
+Boiler economiser and air pre-heater installed for
+biomass fired boiler
+Waste Management
+At Sun Pharma, we have well-documented SOPS/LEPS
+for effective waste management which are executed and
+Principle 7
+Policy Advocacy
+monitored on a continuous basis. Several initiatives are
+taken to reduce the production of waste by minimising
+waste at source; recycle waste materials including solvents,
+wastewater, glass, plastic liners, fibre drums, metal drum
+sheets, HDPE sheets and waste oil; and reuse the recovered
+solvents as and when possible.
+Regular investments are made for process improvements
+as well as upgradation of effluent treatment plants. With
+the latest equipment installed for recycling of the treated
+effluent, we have achieved the status of zero liquid
+discharge at 21 of our facilities.
+Some of the SOPS/LEPS include:
+• Minimise the waste generation at the source itself
+• Well-equipped solvent recovery systems enabling us to
+recycle recovered solvents
+• Recycling of waste material is done through authorised
+recyclers and engaging scrap vendors for materials like
+paper, plastic and HDPE waste
+• Ensure safe and responsible waste disposal as per Govt.
+norms and at Govt. approved sites
+As of March 31, 2021, there were no pending notices from
+pollution control boards.
+We live in a dynamic world with unpredictable disruptions, technology changes and evolving research. As we are focussed
+on making affordable medicines more accessible, we share our experience and leverage our leadership position to provide
+incisive insights and detailed inputs to key decision makers in planning better policies for the patients. Along with that, we
+also learn from the best practices of others in the industry.
+While we collaborate with various trade and industry associations, we are also members of:
+•India CEO Forum on Climate Change
+• Indian Drug Manufacturing Association (IDMA)
+• Indian Pharmaceutical Alliance (IPA)
+We have taken a host of initiatives to reduce the
+consumption of energy in our processes at all our
+manufacturing plants. This was achieved through optimising
+the systems at various points, some of which are:
+• The Associated Chambers of Commerce of India (ASSOCHAM)
+We recognise water-stress as an imminent environmental
+risk with catastrophic implications. We monitor the
+water footprint of our manufacturing processes towards
+minimising our reliance on fresh water sources. We employ
+the 4 R principle of reduce, reuse, recycle and recharge in
+our water conservation endeavours. We have established
+stringent water consumption reduction KPIs across all our
+manufacturing facilities.
+Water management
+• Confederation of Indian Industry (CII)
+• Heat pump installed for hot water generation
+• Condensate recovery pump installed
+Energy efficient pumps installed
+• Installation of air booster in compressed air line
+• Removed primary and secondary system in chilling plant
+• Installed closed loop system for chilled water circulation
+• Motion sensor (electricity) installed to reduce energy
+consumption in close areas
+• AHU centralised to reduce the power consumption
+• Automated tube brushing usage to reduce scaling and
+reduce the energy
+As of now, we have 14 facilities equipped with the biomass
+fuelled boilers, with a total steam generation capacity of
+129 TPH.
+Energy efficient motors provided to save energy
+consumption
+• Replacement of HVLP lamps with LED lamps
+• Reducing air compressor pressure on non-working days
+• Replacement of existing conventional hot water system
+with Plate Heat Exchanger
+• Using ETP RO water for makeup of Cooling Tower in
+Utility
+We are committed to generate more green energy to reduce
+our dependence on fossil fuels. Our renewable sources of
+energy encompass wind, solar and biomass. In FY21, we
+generated around 36.5 million kWh of clean energy (solar
+and wind energy).
+Carbon emission management
+We are committed to contribute to global climate mitigation
+efforts by reducing our carbon footprint. We periodically
+monitor our scope 1 (direct) and scope 2 (energy indirect)
+GHG emissions through a robust GHG inventorying process.
+We also monitor other air emissions such Ozone Depleting
+Substances (ODS) and oxides of Nitrogen and Sulphur
+(NOx and Sox). With respect to ODS, we are gradually
+transitioning to gases with lower Ozone Depleting Potential
+(ODP) and Global Warming Potential (GWP) such as R 134-
+A and R 404 instead of R22
+94
+Statutory Reports
+Business Responsibility Report
+Clean Development Mechanism (CDM) projects have
+been implemented at our facilities by switching from
+'conventional' furnace oil / light diesel oil boilers to 'eco-
+efficient' biomass briquette-based boilers. It not only
+restricts the emissions of our operations, but also achieves
+two more objectives:
+• Social well-being: Generating additional earning
+opportunities for the local people
+• Environmental well-being: Replacing fossil fuels by a
+carbon-neutral fuel
+Greener Investments
+(i) Income tax assets (Net)
+(j) Other non-current assets
+(h) Deferred tax assets (Net)
+169,581.1
+(ii) Loans
+(i) Investments
+Total non-current assets
+(iii) Other financial assets
+(2) Current assets
+13,374.5
+(b) Financial assets
+678227
+95.7
+85.4
+713.9
+749.0
+7.4
+849.3
+169,581.1
+9
+(a) Inventories
+5
+4,428.5
+3,199.4
+(c) Goodwill
+(d) Other Intangible assets
+(e) Intangible assets under development
+(f) Investments in the nature of equity in subsidiaries
+(g) Financial assets
+* in Million
+Notes
+As at
+March 31, 2020
+2,122.6
+3 (a) & 3 (b)
+49,103.1
+3,843.5
+4
+1,208.0
+1,208.0
+4
+2,495.8
+1,976.3
+48,739.8
+11,397.1
+108
+20,826.3
+(v) Loans
+17
+7,385.7
+4,485.9
+(vi) Other financial assets
+18
+7,571.1
+7,584.2
+(c) Other current assets
+19
+7,710.6
+8,824.6
+Total current assets
+120,663.4
+119,411.2
+TOTAL ASSETS
+389,988.3
+384,103.3
+(b) Capital work-in-progress
+4,342.8
+10
+99.2
+(iv) Bank balances other than (iii) above
+20,780.2
+11
+3,912.9
+269,324.9
+3,738.1
+264,692.1
+12
+31,657.2
+26,336.7
+(i) Investments
+13
+310.0
+(ii) Trade receivables
+14
+63,706.2
+3,950.7
+61,681.3
+(iii) Cash and cash equivalents
+15
+2,223.4
+2,205.0
+16
+(a) Property, plant and equipment
+As at
+March 31, 2021
+ASSETS
+Financial Statements
+Standalone Accounts
+Annexure 1 referred to in paragraph 1 under the heading "Report on Other Legal and
+Regulatory Requirements" of our report of even date
+RE: SUN PHARMACEUTICAL INDUSTRIES LIMITED ('THE COMPANY')
+i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation
+of fixed assets.
+(b) All fixed assets have not been physically verified by management during the year but there is a regular
+programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the
+nature of its assets. No material discrepancies were noticed on such verification.
+(c) According to the information and explanations given by management, the title deeds of immovable properties,
+included in property, plant and equipment are held in the name of the Company, except for the following
+immovable properties for which registration of title deeds is in process:
+Net Block as on March
+31, 2021 (million)
+217.23
+102
+Type of asset
+Freehold Land
+8
+Gross Block as on March
+31, 2021 (million)
+238.11
+including building
+located thereon
+Leasehold Land
+3
+Total number
+of cases
+108.54
+Place of Signature: Pune
+Date: May 27, 2021
+per Paul Alvares
+Partner
+(e) On the basis of the written representations
+received from the directors as on March 31, 2021
+taken on record by the Board of Directors, none
+of the directors is disqualified as on March 31,
+2021 from being appointed as a director in terms
+of Section 164 (2) of the Act;
+(f)
+With respect to the adequacy of the internal
+financial controls over financial reporting of the
+Company with reference to these standalone
+Ind AS financial statements and the operating
+effectiveness of such controls, refer to our
+separate report in "Annexure 2" to this report;
+(g) In our opinion, the managerial remuneration for
+the year ended March 31, 2021 has been paid
+/ provided by the Company to its directors in
+accordance with the provisions of section 197
+read with Schedule V to the Act;
+(h) With respect to the other matters to be included
+in the Auditor's Report in accordance with Rule
+11 of the Companies (Audit and Auditors) Rules,
+2014, as amended in our opinion and to the
+best of our information and according to the
+explanations given to us:
+i.
+ii.
+Membership Number: 105754
+UDIN: 21105754AAAACU7233
+iii.
+in its standalone Ind AS financial statements
+- Refer Note 39 to the standalone Ind AS
+financial statements;
+The Company has made provision,
+as required under the applicable law
+or accounting standards, for material
+foreseeable losses, if any, on long-term
+contracts including derivative contracts -
+Refer Note 25 and 29 to the standalone Ind
+AS financial statements;
+There has been no delay in transferring
+amounts, required to be transferred, to the
+Investor Education and Protection Fund
+by the Company, except a sum of INR 1.13
+million, which is held in abeyance due to
+pending legal cases.
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+The Company has disclosed the impact of
+pending litigations on its financial position
+(d) In our opinion, the aforesaid standalone Ind AS
+financial statements comply with the Accounting
+Standards specified under Section 133 of the
+Act, read with Companies (Indian Accounting
+Standards) Rules, 2015, as amended;
+74.66
+(ii) The inventory has been physically verified by
+Finance Act, 1994
+Finance Act, 1994
+Sales Tax Act / VAT (Various
+States)
+Sales Tax Act / VAT (Various
+States)
+Sales Tax Act / VAT (Various
+States)
+Sales Tax Act / VAT (Various
+States)
+Custom Act, 1962
+(1) Non-current assets
+Nature of dues
+Income Tax, Interest
+and Penalty
+Excise Duty, Interest
+and Penalty
+Excise Duty, Interest
+and Penalty
+Forum where the dispute is
+pending
+Income Tax Appellate
+Tribunal (ITAT)
+Commissioner of Income
+Tax (Appeals)
+Customs, Excise and
+Service Tax Appellate
+Tribunal (CESTAT), Delhi
+Commissioner (Appeals)
+Excise Duty, Interest High Court
+and Penalty
+Service Tax
+Income Tax, Interest
+and Penalty
+In respect of building where the Company is
+entitled to the right of occupancy and use and
+disclosed as property, plant and equipment in
+the standalone Ind AS financial statements, we
+report that the instrument entitling the right of
+occupancy and use of building, are in the name of
+the Company as at the balance sheet date.
+The Central Excise Act, 1944
+Income Tax Act, 1961
+management during the year. In our opinion, the
+frequency of verification is reasonable. No material
+discrepancies were noticed on such physical
+verification. Inventories lying with third parties have
+been confirmed by them and no material discrepancies
+were noticed in respect of such confirmations.
+(iii) According to the information and explanations given
+to us, the Company has not granted any loans, secured
+or unsecured to companies, firms, Limited Liability
+Partnerships or other parties covered in the register
+maintained under section 189 of the Companies Act,
+2013. Accordingly, the provisions of clause 3(iii) (a), (b)
+and (c) of the Order are not applicable to the Company
+and hence not commented upon.
+(iv) In our opinion and according to the information and
+explanations given to us, the Company has complied
+with the provisions of section 186 of the Act in respect
+of loans, making investments and providing guarantees
+and securities as applicable. During the year, the
+Company has not granted any loans to parties covered
+under section 185 of the Act.
+(v) The Company has not accepted any deposits within
+the meaning of Sections 73 to 76 of the Act and the
+Annual Report 2020-21
+Remarks
+The title deeds are in the name
+of erstwhile companies that
+were merged with the Company
+under relevant provisions of the
+Companies Act, 1956/2013 in terms
+of approval of the Honorable High
+Courts of respective states.
+The Central Excise Act, 1944
+Companies (Acceptance of Deposits) Rules, 2014 (as
+amended). Accordingly, the provisions of clause 3(v)
+of the Order are not applicable to the Company and
+hence not commented upon.
+(vii) (a) Undisputed statutory dues including provident
+fund, employees' state insurance, income-tax,
+sales-tax, service tax, duty of custom, duty of
+excise, value added tax, goods and service tax,
+cess and other statutory dues have generally
+been regularly deposited with the appropriate
+authorities though there has been a slight delay in
+a few cases.
+(b) According to the information and explanations
+given to us, no undisputed amounts payable
+in respect of provident fund, employees' state
+insurance, income-tax, service tax, sales-tax, duty
+of custom, duty of excise, value added tax, goods
+and service tax, cess and other statutory dues,
+where applicable were outstanding, at the year
+end, for a period of more than six months from
+the date they became payable.
+103
+Sun Pharmaceutical Industries Limited
+CARE
+(c) According to the records of the Company, the dues of income-tax, sales-tax, service tax, duty of custom, duty of
+excise, value added tax, goods and service tax and cess, wherever applicable and which have not been deposited
+on account of any dispute, are as follows:
+Name of the Statute
+Income Tax Act, 1961
+(vi) We have broadly reviewed the books of account
+maintained by the Company pursuant to the rules
+made by the Central Government for the maintenance
+of cost records under section 148(1) of the Companies
+Act, 2013, related to the manufacture of applicable
+pharmaceutical products, and are of the opinion that
+prima facie, the specified accounts and records have
+been made and maintained. We have not, however,
+made a detailed examination of the same.
+(c) The Balance Sheet, the Statement of Profit
+and Loss including the Statement of Other
+Comprehensive Income, the Cash Flow Statement
+and Statement of Changes in Equity dealt with by
+this Report are in agreement with the books of
+account;
+required by law have been kept by the Company
+so far as it appears from our examination of those
+books;
+(b) In our opinion, proper books of account as
+Our audit procedures amongst others included the following:
+Evaluated the design and tested the operating effectiveness
+of controls in respect of the identification, evaluation of
+litigations, the recording / re-assessment of the related
+liabilities, provisions and disclosures.
+Obtained a list of litigations from the Company's in-house legal
+counsel; identified material litigations from the aforementioned
+list and performed inquiries with the said counsel; obtained
+and read the underlying documents to assess the assumptions
+used by management in arriving at the conclusions.
+Circulated, obtained and read legal confirmations from
+Company's external legal counsels in respect of material
+litigations and considered that in our assessment.
+Verified the disclosures related to provisions and contingent
+liabilities in the standalone Ind AS financial statements to
+assess consistency with underlying documents.
+Annual Report 2020-21
+99
+Sun Pharmaceutical Industries Limited
+.
+CARE
+How our audit addressed the key audit matter
+Our audit procedures amongst others included the following:
+Tax litigations and recognition of deferred tax assets (as described in Note 9 and 39 of the standalone Ind AS financial statements)
+The Company has significant tax litigations for which the
+Company assesses the outcome on a case-to-case basis
+considering the underlying facts of each tax litigation. Adverse
+outcomes could significantly impact the Company's reported
+profit and balance sheet position.
+The assessment of outcome of litigations involves significant
+judgement which is dependent on the facts of each case,
+supporting judicial precedents and legal opinions of external
+and internal legal counsels and hence the matter has been
+considered as a Key Audit Matter.
+Recognition of deferred tax assets involves the assessment
+of its recoverability within the allowed time frame requiring
+significant estimate of the financial projections, availability
+of sufficient taxable income in the future and also involving
+significant judgements in the interpretation of tax regulations
+and tax positions adopted by the Company. Considering the
+judgement involved in determining the recovery of deferred tax
+assets, the matter is considered a Key Audit Matter.
+Evaluated the design and tested the operating effectiveness of
+controls in respect of the identification and evaluation of tax
+litigations/deferred tax and the recording and re-assessment of
+the related liabilities/assets and provisions and disclosures.
+Obtained list of ongoing tax litigations from management along
+with their assessment of the cases based on past precedents,
+judgements and matters in the jurisdiction, legal opinions
+sought by management, correspondences with tax department
+etc.
+Engaged tax specialists, to evaluate management's assessment
+of the outcome of these litigations. Our specialists considered
+legal precedence and other rulings in evaluating management's
+position on these tax litigations.
+Key audit matter
+Tested management's assumptions including forecasts and
+sensitivity analysis in respect of recoverability of deferred taxes
+on unabsorbed depreciation/carry forward losses/MAT credit.
+Verified disclosures of the tax positions, tax loss carry
+forwards and tax litigations in the standalone Ind AS financial
+statements.
+Considering the judgement involved in determining the need to
+make a provision or disclose as contingent liability, the matter is
+considered a Key Audit Matter.
+The Company assesses the need to make provision or
+to disclose a contingent liability on a case-to-case basis
+considering the underlying facts of each litigation.
+Independent Auditor's Report
+To the Members of Sun Pharmaceutical Industries Limited
+Financial Statements
+Business Responsibility Report | Standalone Accounts
+REPORT ON THE AUDIT OF THE STANDALONE IND
+AS FINANCIAL STATEMENTS
+OPINION
+We have audited the accompanying standalone Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited (the "Company"), which comprise the Balance Sheet
+as at March 31, 2021, the Statement of Profit and Loss,
+including the Statement of Other Comprehensive Income,
+the Cash Flow Statement and the Statement of Changes in
+Equity for the year then ended, and notes to the standalone
+Ind AS financial statements, including a summary of
+significant accounting policies and other explanatory
+information.
+In our opinion and to the best of our information and
+according to the explanations given to us, the aforesaid
+standalone Ind AS financial statements give the information
+required by the Companies Act, 2013, as amended (the
+"Act") in the manner so required and give a true and fair
+view in conformity with the accounting principles generally
+accepted in India, of the state of affairs of the Company as
+at March 31, 2021, its profit including other comprehensive
+income, its cash flows and the changes in equity for the
+year ended on that date.
+The eventual outcome of the litigations is uncertain and
+estimation at balance sheet date involves extensive judgement
+of management including input from legal counsel due
+to complexity of each litigation. Adverse outcomes could
+significantly impact the Company's reported profit and balance
+sheet position.
+BASIS FOR OPINION
+accordance with the 'Code of Ethics' issued by the Institute
+of Chartered Accountants of India together with the
+ethical requirements that are relevant to our audit of the
+financial statements under the provisions of the Act and
+the Rules thereunder and we have fulfilled our other ethical
+responsibilities in accordance with these requirements and
+the Code of Ethics. We believe that the audit evidence
+we have obtained is sufficient and appropriate to provide
+a basis for our audit opinion on the standalone Ind AS
+financial statements.
+KEY AUDIT MATTERS
+Key audit matters are those matters that, in our professional
+judgment, were of most significance in our audit of the
+standalone Ind AS financial statements for the financial year
+ended March 31, 2021. These matters were addressed in
+the context of our audit of the standalone Ind AS financial
+statements as a whole and in forming our opinion thereon
+and we do not provide a separate opinion on these matters.
+For each key audit matter below, our description of how our
+audit addressed the matter is provided in that context.
+We have determined the matters described below to be
+the key audit matters to be communicated in our report.
+We have fulfilled the responsibilities described in the
+'Auditor's responsibilities for the audit of the standalone Ind
+AS financial statements' section of our report, including in
+relation to these matters. Accordingly, our audit included
+the performance of procedures designed to respond to our
+assessment of the risks of material misstatement of the
+standalone Ind AS financial statements. The results of our
+audit procedures, including the procedures performed to
+address the matters below, provide the basis for our audit
+opinion on the accompanying standalone Ind AS financial
+statements.
+Key audit matter
+How our audit addressed the key audit matter
+Litigations (as described in Note 39 of the standalone Ind AS financial statements)
+The Company is involved in various legal proceedings including
+product liability, contracts, employment claims, Department
+of Justice (DOJ) investigations, anti-trust and other regulatory
+matters relating to conduct of its business.
+We conducted our audit of the standalone Ind AS financial
+statements in accordance with the Standards on Auditing
+(SAs), as specified under section 143(10) of the Act.
+Our responsibilities under those Standards are further
+described in the 'Auditor's Responsibilities for the Audit
+of the Standalone Ind AS Financial Statements' section
+of our report. We are independent of the Company in
+Identification and disclosures of Related Parties (as described in Note 50 of the standalone Ind AS financial statements)
+The Company has related party transactions which include,
+amongst others, sale and purchase of goods/services to its
+subsidiaries, associates, joint ventures and other related parties
+and lending and borrowing to its subsidiaries, associates and
+joint ventures.
+Our audit procedures amongst others included the following:
+Identification and disclosure of related parties was a significant
+area of focus and hence considered it as a Key Audit Matter.
+• Obtain an understanding of internal control relevant to
+the audit in order to design audit procedures that are
+appropriate in the circumstances. Under section 143(3)
+(i) of the Act, we are also responsible for expressing our
+opinion on whether the Company has adequate internal
+financial controls with reference to financial statements
+in place and the operating effectiveness of such controls.
+• Evaluate the appropriateness of accounting policies used
+and the reasonableness of accounting estimates and
+related disclosures made by management.
+• Conclude on the appropriateness of management's use
+of the going concern basis of accounting and, based
+on the audit evidence obtained, whether a material
+uncertainty exists related to events or conditions that
+may cast significant doubt on the Company's ability
+to continue as a going concern. If we conclude that a
+material uncertainty exists, we are required to draw
+attention in our auditor's report to the related disclosures
+in the financial statements or, if such disclosures are
+inadequate, to modify our opinion. Our conclusions
+are based on the audit evidence obtained up to the
+date of our auditor's report. However, future events or
+conditions may cause the Company to cease to continue
+as a going concern.
+• Evaluate the overall presentation, structure and
+content of the standalone Ind AS financial statements,
+including the disclosures, and whether the standalone
+Ind AS financial statements represent the underlying
+transactions and events in a manner that achieves fair
+presentation.
+We communicate with those charged with governance
+regarding, among other matters, the planned scope and
+timing of the audit and significant audit findings, including
+any significant deficiencies in internal control that we
+identify during our audit.
+We also provide those charged with governance with a
+statement that we have complied with relevant ethical
+requirements regarding independence, and to communicate
+with them all relationships and other matters that may
+reasonably be thought to bear on our independence, and
+where applicable, related safeguards.
+From the matters communicated with those charged with
+governance, we determine those matters that were of most
+significance in the audit of the standalone Ind AS financial
+statements for the financial year ended March 31, 2021
+and are therefore the key audit matters. We describe these
+matters in our auditor's report unless law or regulation
+precludes public disclosure about the matter or when, in
+extremely rare circumstances, we determine that a matter
+should not be communicated in our report because the
+adverse consequences of doing so would reasonably be
+expected to outweigh the public interest benefits of such
+communication.
+• Identify and assess the risks of material misstatement of
+the standalone Ind AS financial statements, whether due
+to fraud or error, design and perform audit procedures
+responsive to those risks, and obtain audit evidence
+that is sufficient and appropriate to provide a basis
+for our opinion. The risk of not detecting a material
+misstatement resulting from fraud is higher than for
+one resulting from error, as fraud may involve collusion,
+forgery, intentional omissions, misrepresentations, or the
+override of internal control.
+Annual Report 2020-21
+Sun Pharmaceutical Industries Limited
+CARE
+REPORT ON OTHER LEGAL AND REGULATORY
+REQUIREMENTS
+1.
+2.
+As required by the Companies (Auditor's Report)
+Order, 2016 (the "Order”), issued by the Central
+Government of India in terms of sub-section (11) of
+section 143 of the Act, we give in the "Annexure 1" a
+statement on the matters specified in paragraphs 3 and
+4 of the Order.
+As required by Section 143(3) of the Act, we report
+that:
+(a) We have sought and obtained all the information
+and explanations which to the best of our
+knowledge and belief were necessary for the
+purposes of our audit;
+101
+As part of an audit in accordance with SAs, we exercise
+professional judgment and maintain professional skepticism
+throughout the audit. We also:
+AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF
+THE STANDALONE IND AS FINANCIAL STATEMENTS
+Our objectives are to obtain reasonable assurance about
+whether the standalone Ind AS financial statements as
+a whole are free from material misstatement, whether
+due to fraud or error, and to issue an auditor's report that
+includes our opinion. Reasonable assurance is a high level
+of assurance, but is not a guarantee that an audit conducted
+in accordance with SAs will always detect a material
+misstatement when it exists. Misstatements can arise from
+fraud or error and are considered material if, individually
+or in the aggregate, they could reasonably be expected
+to influence the economic decisions of users taken on the
+basis of these standalone Ind AS financial statements.
+The Board of Directors are also responsible for overseeing
+the Company's financial reporting process.
+OTHER INFORMATION
+The Company's Board of Directors is responsible for the
+other information. The other information comprises the
+information included in the Annual Report, but does not
+include the standalone Ind AS financial statements and our
+auditor's report thereon.
+Our opinion on the standalone Ind AS financial statements
+does not cover the other information and we do not express
+any form of assurance conclusion thereon.
+In connection with our audit of the standalone Ind AS
+financial statements, our responsibility is to read the other
+information and, in doing so, consider whether such other
+information is materially inconsistent with the financial
+statements or our knowledge obtained in the audit or
+.
+•
+Evaluated the design and tested the operating effectiveness
+of controls over identification and disclosure of related party
+transactions.
+Obtained a list of related parties from the Company's
+management and traced the related parties to declarations
+given by directors, where applicable, and to Note 50 of the
+standalone Ind AS financial statements.
+Read minutes of the meetings of the Board of Directors and
+Audit Committee to trace related party transactions with limits
+approved by Audit Committee/Board.
+Tested material creditors/debtors, loan given/loans taken
+to evaluate existence of any related party relationships;
+tested transactions based on declarations of related party
+transactions given to the Board of Directors and Audit
+Committee.
+Verified the disclosures in the standalone Ind AS financial
+statements for compliance with Ind AS 24.
+otherwise appears to be materially misstated. If, based on
+the work we have performed, we conclude that there is
+a material misstatement of this other information, we are
+required to report that fact. We have nothing to report in
+this regard.
+RESPONSIBILITIES OF MANAGEMENT FOR THE
+STANDALONE IND AS FINANCIAL STATEMENTS
+The Company's Board of Directors is responsible for
+the matters stated in section 134(5) of the Act with
+respect to the preparation of these standalone Ind AS
+financial statements that give a true and fair view of the
+financial position, financial performance including other
+comprehensive income, cash flows and changes in equity of
+the Company in accordance with the accounting principles
+generally accepted in India, including the Indian Accounting
+100
+Financial Statements
+Standalone Accounts
+Standards (Ind AS) specified under section 133 of the Act
+read with the Companies (Indian Accounting Standards)
+Rules, 2015, as amended. This responsibility also includes
+maintenance of adequate accounting records in accordance
+with the provisions of the Act for safeguarding of the
+assets of the Company and for preventing and detecting
+frauds and other irregularities; selection and application
+of appropriate accounting policies; making judgments and
+estimates that are reasonable and prudent; and the design,
+implementation and maintenance of adequate internal
+financial controls, that were operating effectively for
+ensuring the accuracy and completeness of the accounting
+records, relevant to the preparation and presentation of the
+standalone Ind AS financial statements that give a true and
+fair view and are free from material misstatement, whether
+due to fraud or error.
+In preparing the standalone Ind AS financial statements,
+management is responsible for assessing the Company's
+ability to continue as a going concern, disclosing, as
+applicable, matters related to going concern and using the
+going concern basis of accounting unless management
+either intends to liquidate the Company or to cease
+operations, or has no realistic alternative but to do so.
+Service Tax
+Sales Tax, Interest
+and Penalty
+The Central Excise Act, 1944
+21.62
+We believe that the audit evidence we have obtained is
+sufficient and appropriate to provide a basis for our audit
+opinion on the internal financial controls over financial
+reporting with reference to these standalone Ind AS
+financial statements.
+effectiveness. Our audit of internal financial controls over
+financial reporting included obtaining an understanding
+of internal financial controls over financial reporting
+with reference to these standalone Ind AS financial
+statements, assessing the risk that a material weakness
+exists, and testing and evaluating the design and operating
+effectiveness of internal control based on the assessed
+risk. The procedures selected depend on the auditor's
+judgement, including the assessment of the risks of material
+misstatement of the financial statements, whether due to
+fraud or error.
+Our audit involves performing procedures to obtain audit
+evidence about the adequacy of the internal financial
+controls over financial reporting with reference to these
+standalone Ind AS financial statements and their operating
+Our responsibility is to express an opinion on the
+Company's internal financial controls over financial
+reporting with reference to these standalone Ind AS
+financial statements based on our audit. We conducted
+our audit in accordance with the Guidance Note on Audit
+of Internal Financial Controls Over Financial Reporting
+(the "Guidance Note") and the Standards on Auditing as
+specified under section 143(10) of the Companies Act,
+2013, to the extent applicable to an audit of internal
+financial controls and, both issued by the Institute of
+Chartered Accountants of India. Those Standards and
+the Guidance Note require that we comply with ethical
+requirements and plan and perform the audit to obtain
+reasonable assurance about whether adequate internal
+financial controls over financial reporting with reference
+to these standalone Ind AS financial statements was
+established and maintained and if such controls operated
+effectively in all material respects.
+AUDITOR'S RESPONSIBILITY
+The Company's management is responsible for establishing
+and maintaining internal financial controls based on the
+internal control over financial reporting criteria established
+by the Company considering the essential components of
+internal control stated in the Guidance Note on Audit of
+Internal Financial Controls Over Financial Reporting issued
+by the Institute of Chartered Accountants of India. These
+responsibilities include the design, implementation and
+maintenance of adequate internal financial controls that
+were operating effectively for ensuring the orderly and
+efficient conduct of its business, including adherence to
+the Company's policies, the safeguarding of its assets, the
+prevention and detection of frauds and errors, the accuracy
+and completeness of the accounting records, and the timely
+preparation of reliable financial information, as required
+under the Act.
+MANAGEMENT'S RESPONSIBILITY FOR INTERNAL
+FINANCIAL CONTROLS
+Sales Tax, Interest
+and Penalty
+MEANING OF INTERNAL FINANCIAL CONTROLS
+OVER FINANCIAL REPORTING WITH REFERENCE TO
+THESE FINANCIAL STATEMENTS
+Sales Tax, Interest
+and Penalty
+Penalty and Interest
+Assistant/Additional /
+Senior Joint Commissioner
+CESTAT
+Assistant/Additional /
+Senior Joint Commissioner
+Appellate Authority
+Tribunal
+Year to which it pertains
+Various years from
+2006-07 to 2011-12
+Various years from
+2009-10 to 2014-15
+Various years from
+2003-04 to 2015-16
+Amount
+(* million)*
+12,382.63
+460.72
+792.82
+Customs Duty,
+Various years from
+2003-04 to 2017-18
+Various years from
+2003-04 to 2013-14
+Various years from
+2004-05 to 2017-18
+Various years from
+2013-14 to 2015-16
+Various years from
+1999-00 to 2016-17
+Various years from
+1998-99 to 2015-16
+A company's internal financial control over financial
+reporting with reference to these standalone Ind AS
+financial statements is a process designed to provide
+reasonable assurance regarding the reliability of financial
+reporting and the preparation of financial statements for
+external purposes in accordance with generally accepted
+accounting principles. A company's internal financial control
+over financial reporting with reference to these standalone
+Ind AS financial statements includes those policies and
+procedures that (1) pertain to the maintenance of records
+that, in reasonable detail, accurately and fairly reflect the
+transactions and dispositions of the assets of the company;
+(2) provide reasonable assurance that transactions are
+recorded as necessary to permit preparation of financial
+statements in accordance with generally accepted
+accounting principles, and that receipts and expenditures
+of the company are being made only in accordance with
+authorisations of management and directors of the
+company; and (3) provide reasonable assurance regarding
+prevention or timely detection of unauthorised acquisition,
+use, or disposition of the company's assets that could have a
+material effect on the financial statements.
+Because of the inherent limitations of internal financial
+controls over financial reporting with reference to these
+standalone Ind AS financial statements, including the
+possibility of collusion or improper management override
+as at March 31, 2021
+Standalone Balance Sheet
+CARE
+Sun Pharmaceutical Industries Limited
+107
+Annual Report 2020-21
+Place of Signature: Pune
+Date: May 27, 2021
+Membership Number: 105754
+UDIN: 21105754AAAACU7233
+INHERENT LIMITATIONS OF INTERNAL FINANCIAL
+CONTROLS OVER FINANCIAL REPORTING WITH
+REFERENCE TO THESE STANDALONE IND AS
+FINANCIAL STATEMENTS
+per Paul Alvares
+Partner
+Chartered Accountants
+For S RBC & CO LLP
+March 31, 2021, based on the internal control over financial
+reporting criteria established by the Company considering
+the essential components of internal control stated in the
+Guidance Note on Audit of Internal Financial Controls Over
+Financial Reporting issued by the Institute of Chartered
+Accountants of India.
+In our opinion, the Company has, in all material respects,
+adequate internal financial controls over financial reporting
+with reference to these standalone Ind AS financial
+statements and such internal financial controls over
+financial reporting with reference to these standalone Ind
+AS financial statements were operating effectively as at
+OPINION
+of controls, material misstatements due to error or fraud
+may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial
+reporting with reference to these standalone Ind AS
+financial statements to future periods are subject to the risk
+that the internal financial control over financial reporting
+with reference to these standalone Ind AS financial
+statements may become inadequate because of changes
+in conditions, or that the degree of compliance with the
+policies or procedures may deteriorate.
+Financial Statements
+Standalone Accounts
+106
+ICAI Firm Registration Number: 324982E/E300003
+Particulars
+11.88
+28.86
+(x) Based upon the audit procedures performed for the
+purpose of reporting true and fair view of the financial
+statements and according to the information and
+explanations given by management, we report that
+no fraud by the Company or no material fraud on
+the Company by the officers and employees of the
+Company has been noticed or reported during the
+year.
+(xi) According to the information and explanations given
+by management, managerial remuneration has been
+paid provided in accordance with the requisite
+approvals mandated by the provisions of section 197
+read with Schedule V to the Companies Act, 2013.
+(xii) In our opinion, the Company is not a nidhi company.
+Therefore, the provisions of clause 3(xii) of the Order
+are not applicable to the Company and hence not
+commented upon.
+(xiii) According to the information and explanations
+given by management, transactions with the related
+104
+Financial Statements
+Standalone Accounts
+parties are in compliance with section 177 and 188 of
+Companies Act, 2013 where applicable and the details
+have been disclosed in the notes to the standalone Ind
+AS financial statements, as required by the applicable
+accounting standards.
+(ix) In our opinion and according to the information and
+explanations given by management, the Company has
+utilized the monies raised by way of term loans for the
+purposes for which they were raised. The Company
+did not raise any money by way of initial public offer /
+further public offer /debt instruments.
+(xiv) According to the information and explanations given to
+us and on an overall examination of the balance sheet,
+the Company has not made any preferential allotment
+or private placement of shares or fully or partly
+convertible debentures during the year under review
+and hence, reporting requirements under clause 3(xiv)
+of the Order are not applicable to the Company and
+hence not commented upon.
+(xvi) According to the information and explanations given to
+us, the provisions of section 45-IA of the Reserve Bank
+of India Act, 1934 are not applicable to the Company.
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+per Paul Alvares
+Partner
+Membership Number: 105754
+UDIN: 21105754AAAACU7233
+Place of Signature: Pune
+Date: May 27, 2021
+Annual Report 2020-21
+105
+(xv) According to the information and explanations given
+by management, the Company has not entered into
+any non-cash transactions with directors or persons
+connected with him/her as referred to in section 192
+of the Act.
+4.88
+explanations given by management, the Company
+has not defaulted in repayment of loans or borrowing
+to a financial institution, bank or Government. The
+Company did not have any outstanding dues to
+debenture holders during the year.
+*Amount includes interest till the date of demand and are net of advances paid/adjusted under protest.
+3,456.53
+28.79
+1.71
+Sales Tax, Interest
+and Penalty
+High Court
+Commissioner (Appeals)
+Custom Act, 1962
+Customs Duty,
+Penalty and Interest
+(viii) In our opinion and according to the information and
+CESTAT
+Commissioner (Appeals)
+Various years from
+1998-99 to 2013-14
+Various years from
+1999-00 to 2010-11
+Various years from
+2008-09 to 2014-15
+Various years from
+2010-11 to 2012-13
+2017-18 to 2018-19
+2.89
+53.51
+REPORT ON THE INTERNAL FINANCIAL CONTROLS
+UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
+143 OF THE COMPANIES ACT, 2013 ("THE ACT")
+We have audited the internal financial controls over
+financial reporting of Sun Pharmaceutical Industries Limited
+(the "Company") as of March 31, 2021 in conjunction with
+our audit of the standalone Ind AS financial statements of
+the Company for the year ended on that date.
+115.97
+6.65
+Tax
+The Goods and Service Tax Act Goods and Service
+Sun Pharmaceutical Industries Limited
+CARE
+Annexure 2 to the Independent Auditor's Report of even date on the Standalone Ind
+AS Financial Statements of Sun Pharmaceutical Industries Limited
+Standalone Statement of Changes in Equity
+(25.1)
+7.9
+(604.5) (808.0)
+31,925.1
+(25.1)
+7.9
+^ (186.3)
+(604.5)
+Payment of dividend
+(13,789.6)
+(13,789.6)
+Dividend distribution tax
+(1,928.9)
+(1,928.9)
+31,303.4
+Expenditure on buy-back of shares
+-
+32,111.4
+reserve
+hedges
+Balance as at March 31, 2019
+Profit for the year
+Other comprehensive income for the year
+Total comprehensive income for the year
+2,399.3 53,575.2 11,932.9
+32,111.4
+43.8
+26.1
+(8.2)
+1,485.9
+348.2 228,436.1
+-
+-
+7.5 34,779.3 123,846.1
+OCI
+(58.8)
+[Refer Note 55 (8)]
+-
+21,324.4
+5.6
+0.3
+699.7
+22,030.0
+Total comprehensive income for the year
+Payment of dividend
+(15,590.6)
+-
+(15,590.6)
+Balance as at March 31, 2021
+2,399.3
+53,575.2 11,874.1
+-
+(58.8)
+633.0
+0.3
+Balance as at March 31, 2020
+2,399.3
+53,575.2 11,874.1
+43.8
+7.5 34,779.3 140,052.7
+1.0
+699.7
+(0.3) 1,485.9
+Profit for the year
+21,397.0
+21,397.0
+Other comprehensive income for the year
+^ (72.6)
+5.6
+(256.3) 243,962.2
+for the year ended March 31, 2021
+OCI
+cash flow
+12.1
+0.5
+324.7
+(375.8)
+(929.2)
+1,075.5
+(0.2)
+(211.4)
+Annual Report 2020-21
+(3.0)
+(38.6)
+8.6
+(286.4)
+100.1
+39.0
+(67.0)
+(111.6)
+(4.2)
+(596.6)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+SUNIL R. AJMERA
+Company Secretary
+(DIN: 00005588)
+Managing Director
+DILIP S. SHANGHVI
+700.0
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+8.92
+8.92
+46
+31,303.4
+22,030.0
+(808.0)
+633.0
+13.38
+13.38
+reserve
+110
+Membership No.: 105754
+* in Million
+Other equity
+Reserve and surplus
+Other comprehensive income (OCI)
+Particulars
+Equity
+share
+capital
+a.
+Capital Securities Amalgamation
+reserve premium
+43.8
+reserve
+General Retained
+reserve earnings
+Equity Debt Foreign
+instrument instrument currency
+through through translation
+Effective
+portion of
+Total
+Capital
+redemption
+Date: May 27, 2021
+Effective portion of gain / (loss) on designated portion of hedging
+instruments in a cash flow hedge
+b. Gain (loss) on debt instrument measured at fair value through other
+comprehensive income
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No.: 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+Income tax on above
+The accompanying notes are an integral part of the standalone financial statements
+Basic (in)
+Earnings per equity share (face value per equity share - 1)
+(XI) TOTAL COMPREHENSIVE INCOME FOR THE YEAR (IX+X)
+Total other comprehensive income (A+B) (X)
+Total (B)
+Income tax on above
+Diluted (in)
+13.5
+Total current liabilities
+Standalone Balance Sheet
+17,027.7
+17,984.5
+34
+Employee benefits expense
+1,386.0
+(2,148.4)
+33
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+Finance costs
+12,274.1
+Purchases of stock-in-trade
+32,017.1
+38,091.1
+32
+Cost of materials consumed
+(IV) EXPENSES
+140,428.5
+129,534.3
+11,996.3
+15,109.2
+35
+4,080.1
+32,530.0
+22,424.3
+895.6
+21,528.7
+(VII) PROFIT BEFORE TAX (V-VI)
+55 (2)
+(VI) Exceptional item
+(V) PROFIT BEFORE EXCEPTIONAL ITEM AND TAX (III - IV)
+357.1
+107,898.5
+35,140.8
+2,569.8
+32,599.8
+148.8
+107,110.0
+Net loss on foreign currency transactions
+36
+Other expenses
+(b) & 4
+5,615.6
+5,868.1
+3 (a), 3
+Depreciation and amortisation expense
+Total expenses (IV)
+32,530.0
+125,319.3
+31
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Annual Report 2020-21
+Date: May 27, 2021
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+DILIP S. SHANGHVI
+For S RBC & CO LLP
+The accompanying notes are an integral part of the standalone financial statements
+384,103.3
+389,988.3
+TOTAL EQUITY AND LIABILITIES
+140,141.1
+112,037.4
+83,435.5
+139,586.7
+Total liabilities
+As per our report of even date
+1,502.2
+Managing Director
+SUNIL R. AJMERA
+Company Secretary
+128,032.1
+30
+March 31, 2020
+Year ended
+March 31, 2021
+Notes
+(III) Total income (I + II)
+(II) Other income
+(I) Revenue from operations
+(DIN: 00005588)
+Particulars
+* in Million
+for the year ended March 31, 2021
+Standalone Statement of Profit and Loss
+CARE
+Sun Pharmaceutical Industries Limited
+109
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+Year ended
+10,979.4
+(VIII) TAX EXPENSE / (CREDIT)
+Deferred tax
+March 31, 2021
+As at
+March 31, 2020
+22
+20
+2,399.3
+2,399.3
+21
+248,002.3
+Notes
+250,401.6
+23
+2222
+48,335.6
+12,566.9
+161.7
+24
+1,607.2
+1,455.5
+241,562.9
+243,962.2
+25
+As at
+Financial Statements
+Standalone Accounts
+as at March 31, 2021
+Particulars
+EQUITY AND LIABILITIES
+Equity
+(a) Equity share capital
+(b) Other equity
+Total equity
+Liabilities
+* in Million
+(1) Non-current liabilities
+(i) Borrowings
+(ii) Other financial liabilities
+(b) Other non-current liabilities
+(c) Provisions
+Total non-current liabilities
+(2) Current liabilities
+(a) Financial liabilities
+(i) Borrowings
+(a) Financial liabilities
+Current tax
+6,208.4
+56,151.2
+4,768.2
+6,437.2
+12,036.7
+B) Items that may be reclassified to the statement of profit or loss
+Total -(A)
+Income tax on above
+b. Gain (loss) on equity instrument measured at fair value through other
+comprehensive income
+Income tax on above
+28,445.4
+a. Gain (loss) on remeasurement of the defined benefit plans
+(IX) PROFIT FOR THE YEAR (VII-VIII)
+32,111.4
+418.6
+3,864.6
+(3,446.0)
+2,449.1
+(2,317.4)
+131.7
+21,397.0
+9 & 38
+38
+Total tax expense / (credit) (VIII)
+(X) OTHER COMPREHENSIVE INCOME
+13,919.6
+24,184.7
+222
+28,103.7
+26
+16,519.8
+44,882.7
+(ii) Trade payables
+(a) total outstanding dues of micro and small enterprises
+45
+55
+27
+852.0
+25,074.1
+461.8
+20,830.9
+enterprises
+(iii) Other financial liabilities
+(b) Other current liabilities
+28
+(c) Provisions
+29
+(b) total outstanding dues of creditors other than micro and small
+7.5 34,779.3 145,786.5
+A) Items that will not be reclassified to the statement of profit or loss
+-
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+114
+• Cash or cash equivalent unless restricted from being
+exchanged or used to settle a liability for at least
+twelve months after the reporting period
+• Expected to be realised within twelve months after
+the reporting period, or
+• Held primarily for the purpose of trading
+• Expected to be realised or intended to be sold or
+consumed in normal operating cycle
+The Company presents assets and liabilities in
+the balance sheet based on current / non-current
+classification. An asset is treated as current when it is:
+Current vs. Non-current
+The Company has consistently applied the following
+accounting policies to all periods presented in these
+financial statements.
+b.
+• Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the
+asset or liability, either directly or indirectly; and
+In addition, for financial reporting purposes, fair
+value measurements are categorised into Level 1,
+2, or 3 based on the degree to which the inputs
+to the fair value measurements are observable
+and the significance of the inputs to the fair value
+measurement in its entirety, which are described as
+follows:
+transaction between market participants at the
+measurement date, regardless of whether that price
+is directly observable or estimated using another
+valuation technique. In estimating the fair value of an
+asset or a liability, the Company takes into account
+the characteristics of the asset or liability if market
+participants would take those characteristics into
+account when pricing the asset or liability at the
+measurement date. Fair value for measurement and/
+or disclosure purposes in these financial statements
+is determined on such a basis, except for share-based
+payment transactions that are within the scope of Ind
+AS 102, leasing transactions that are within the scope
+of Ind AS 116, and measurements that have some
+similarities to fair value but are not fair value, such as
+net realisable value in Ind AS 2 or value in use in
+Ind AS 36.
+a.
+Fair value is the price that would be received to sell
+an asset or paid to transfer a liability in an orderly
+The standalone financial statements are presented
+in and all values are rounded to the nearest Million
+(000,000) upto one decimal, except when otherwise
+indicated.
+Historical cost is generally based on the fair value of
+the consideration given in exchange for goods and
+services.
+The financial statements have been prepared on the
+historical cost basis, except for: (i) certain financial
+instruments that are measured at fair values at the
+end of each reporting period; (ii) Non-current assets
+classified as held for sale which are measured at the
+lower of their carrying amount and fair value less
+costs to sell; (iii) derivative financial instrument and (iv)
+defined benefit plans - plan assets that are measured
+at fair values at the end of each reporting period, as
+explained in the accounting policies below.
+2.2 Basis of preparation and presentation
+These financial statements are separate financial
+statements of the Company (also called standalone
+financial statements). The Company has prepared
+financial statements for the year ended March 31,
+2021 in accordance with Indian Accounting Standards
+(Ind AS) notified under the Companies (Indian
+Accounting Standards) Rules, 2015 (as amended)
+together with the comparative period data as at and
+for the year ended March 31, 2020.
+NOTE 2: SIGNIFICANT ACCOUNTING POLICIES
+2.1 Statement of compliance
+• Level 1 inputs are quoted prices (unadjusted) in
+active markets for identical assets or liabilities that
+the entity can access at the measurement date;
+The standalone financial statement were authorised for
+issue in accordance with a resolution of the directors on
+May 27, 2021.
+Financial Statements
+Standalone Accounts
+A liability is current when:
+An item of property, plant and equipment is
+derecognised upon disposal or when no future
+economic benefits are expected to arise from the
+continued use of the asset. Any gain or loss arising
+on the disposal or retirement of an item of property,
+plant and equipment is determined as the difference
+between the sales proceeds and the carrying amount
+of property, plant and equipment and is recognised in
+profit or loss.
+When parts of an item of property, plant and
+equipment have different useful lives, they are
+accounted for as separate items (major components) of
+property, plant and equipment.
+Assets in the course of construction for production,
+supply or administrative purposes are carried at cost,
+less any recognised impairment loss. Cost includes
+purchase price, borrowing costs if capitalisation criteria
+are met and directly attributable cost of bringing the
+asset to its working condition for the intended use.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate. Such assets
+are classified to the appropriate categories of property,
+plant and equipment when completed and ready for
+intended use. Depreciation of these assets, on the
+same basis as other assets, commences when the
+assets are ready for their intended use.
+Items of property, plant and equipment are stated in
+balance sheet at cost less accumulated depreciation
+and accumulated impairment losses, if any. Freehold
+land is not depreciated.
+Property, plant and equipment
+Operating segments are reported in a manner
+consistent with the internal reporting provided to the
+chief operating decision maker. The chief operating
+decision maker of the Company is responsible for
+allocating resources and assessing performance of the
+operating segments.
+Segment reporting
+Non-monetary items that are measured in terms of
+historical cost in foreign currency are measured using
+the exchange rates at the date of initial transaction.
+translation reserve. Exchange difference in the
+foreign currency translation reserve are reclassified
+to statement of profit or loss account on the
+disposal of the foreign operation.
+d.
+All other assets are classified as non-current.
+C.
+• exchange differences on transactions entered into
+in order to hedge certain foreign currency risks (see
+note 2.2.i below for hedging accounting policies).
+• exchange differences on foreign currency
+borrowings relating to assets under construction
+for future productive use, which are included in
+the cost of those assets when they are regarded
+as an adjustment to interest costs on those foreign
+currency borrowings (see note 2.2.r).
+On initial recognition, transactions in currencies other
+than the Company's functional currency (foreign
+currencies) are translated at exchange rates on the
+date of the transactions. Monetary assets and liabilities
+denominated in foreign currencies at the reporting
+date are translated into the functional currency at
+the exchange rate on that date. Exchange differences
+arising on the settlement of monetary items or
+on translating monetary items at rates different
+from those at which they were translated on initial
+recognition during the period or in previous period are
+recognised in profit or loss in the period in which they
+arise except for:
+Foreign currency
+The operating cycle is the time between the
+acquisition of assets for processing and their
+realisation in cash and cash equivalents. The Company
+has identified twelve months as its operating cycle.
+Deferred tax assets and liabilities are classified as non-
+current assets and liabilities.
+The Company classifies all other liabilities as non-
+current.
+• There is no unconditional right to defer the
+settlement of the liability for at least twelve months
+after the reporting period
+⚫ It is due to be settled within twelve months after the
+reporting period, or
+• It is expected to be settled in normal operating cycle
+●It is held primarily for the purpose of trading
+• exchange differences relating to the translation of
+the results and the net assets of the Company's
+foreign operations from their functional currencies
+to the Company's presentation currency (i.e *) are
+recognised directly in the other comprehensive
+income and accumulated in foreign currency
+Sun Pharmaceutical Industries Limited (SPIL or the
+"Company") is a public limited company incorporated and
+domiciled in India, having it's registered office at Vadodara,
+Gujarat, India. SPIL is listed on the BSE Limited and National
+Stock Exchange of India Limited. The Company is engaged
+in the business of manufacturing, developing and marketing
+a wide range of branded and generic formulations and
+Active Pharmaceutical Ingredients (APIs). The Company has
+various manufacturing locations spread across the country
+with trading and other incidental and related activities
+extending to the global markets.
+NOTE 1: GENERAL INFORMATION
+for the year ended March 31, 2021
+(42.9)
+14.0
+3,767.7
+94.8
+(457.7)
+(228.7)
+(6,833.0)
+66.9
+214.7
+64,366.4
+(161.7)
+(161.7)
+Borrowings #
+Derivatives, net
+[(Liabilities)/Asset]
+Year ended March 31,2020
+Derivatives, net
+[(Liabilities)/Asset]
+Year ended March 31,2021
+Borrowings #
+* in Million
+2,197.0
+8.0
+2,205.0
+2,216.1
+7.3
+2,223.4
+As at
+March 31, 2020
+61,847.0
+3,444.4
+(169.6)
+64,664.1
+(42.9)
+545.9
+61,847.0
+Notes to the Standalone Financial Statements
+CARE
+Sun Pharmaceutical Industries Limited
+113
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+SUNIL R. AJMERA
+Company Secretary
+Managing Director
+(DIN: 00005588)
+DILIP S. SHANGHVI
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Annual Report 2020-21
+Date: May 27, 2021
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the standalone financial statements
+# For movement of lease liabilities, Refer Note 48
+Closing balance
+(161.7)
+Annual Report 2020-21
+115
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+Subsequent measurement
+All financial assets are recognised initially at fair value
+plus, in the case of financial assets not recorded at fair
+value through profit or loss, transaction costs that are
+attributable to the acquisition of the financial asset.
+Purchases or sales of financial assets that require
+delivery of assets within a time frame established by
+regulation or convention in the market place (regular
+way trades) are recognised on the date the Company
+commits to purchase or sale the financial assets.
+Initial recognition and measurement
+Financial assets
+A financial instrument is any contract that gives rise to
+a financial asset of one entity and a financial liability or
+equity instrument of another entity.
+Financial instruments
+Non-current assets (and disposal groups) classified
+as held for sale are measured at the lower of their
+carrying amount and fair value less costs to sell. Non-
+current assets held for sale are not depreciated or
+amortised.
+to the sale, which should be expected to qualify for
+recognition as a completed sale within one year from
+the date of classification.
+i.
+for the year ended March 31, 2021
+For purposes of subsequent measurement, financial
+assets are classified in four categories:
+Notes to the Standalone Financial Statements
+Sun Pharmaceutical Industries Limited
+117
+Annual Report 2020-21
+Non-current assets and disposal groups are classified
+as held for sale if their carrying amount will be
+recovered principally through a sale transaction rather
+than through continuing use. This condition is regarded
+as met only when the asset (or disposal group) is
+available for immediate sale in its present condition
+subject only to terms that are usual and customary
+for sales of such asset (or disposal group) and its sale
+is highly probable. Management must be committed
+Non-current assets held for sale
+In respect of other asset, impairment losses recognised
+in prior periods are assessed at each reporting date
+for any indications that the loss has decreased or
+no longer exists. An impairment loss is reversed if
+there has been a change in the estimates used to
+determine the recoverable amount. An impairment
+loss is reversed only to the extent that the asset's
+carrying amount does not exceed the carrying amount
+that would have been determined, net of depreciation
+or amortisation, if no impairment loss had been
+recognised.
+Goodwill is tested for impairment annually. Goodwill
+acquired in a business combination, for the purpose
+of impairment testing is allocated to cash-generating
+units that are expected to benefit from the synergies
+of the combination.
+An impairment loss is recognised in the profit or loss
+if the estimated recoverable amount of an asset or its
+cash generating unit is lower than its carrying amount.
+Impairment losses recognised in respect of cash-
+generating units are allocated to reduce the carrying
+amount of the other assets in the unit on a pro-rata
+basis.
+The recoverable amount of an asset or cash-generating
+unit (as defined below) is the greater of its value in use
+and its fair value less costs to sell. In assessing value in
+use, the estimated future cash flows are discounted to
+their present value using a pre-tax discount rate that
+reflects current market assessments of the time value
+of money and the risks specific to the asset or the
+cash-generating unit for which the estimates of future
+cash flows have not been adjusted. For the purpose
+of impairment testing, assets are grouped together
+into the smallest group of assets that generates
+cash inflows from continuing use that are largely
+independent of the cash inflows of other assets or
+groups of assets (the "cash-generating unit").
+impairment. If any such indication exists, then the
+asset's recoverable amount is estimated in order to
+determine the extent of the impairment loss, if any.
+CARE
+• Debt instruments at amortised cost
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+• Debt instruments and equity instruments at fair
+value through profit or loss (FVTPL)
+6.6
+118
+Debt instruments included within the FVTPL category
+are measured at fair value with all the changes in the
+profit or loss.
+In addition, the Company may elect to designate a debt
+instrument, which otherwise meets amortised cost or
+FVTOCI criteria, as at FVTPL. However, such election
+is allowed only if doing so reduces or eliminates a
+measurement or recognition inconsistency (referred to
+as 'accounting mismatch').
+FVTPL is a residual category for debt instruments. Any
+debt instrument, which does not meet the criteria for
+categorisation as at amortised cost or as FVTOCI, is
+classified as at FVTPL.
+Debt instrument at FVTPL
+Debt instruments included within the FVTOCI
+category are measured initially as well as at each
+reporting date at fair value. Fair value movements are
+recognised in the other comprehensive income (OCI).
+However, the Company recognises interest income,
+impairment losses & reversals and foreign exchange
+gain or loss in the profit or loss. On derecognition of
+the asset, cumulative gain or loss previously recognised
+in OCI is reclassified from the equity to profit or
+loss. Interest earned whilst holding FVTOCI debt
+instrument is reported as interest income using the EIR
+method.
+The contractual terms of the instrument give rise
+on specified dates to cash flows that are SPPI on
+the principal amount outstanding.
+The objective of the business model is achieved
+both by collecting contractual cash flows and
+selling the financial assets, and
+b)
+a)
+A 'debt instrument' is measured as at FVTOCI if both
+of the following criteria are met:
+Debt instrument at FVTOCI
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost
+is calculated by taking into account any discount or
+premium on acquisition and fees or costs that are
+an integral part of the EIR. The EIR amortisation is
+included in Other Income in the profit or loss. The
+losses arising from impairment are recognised in the
+profit or loss.
+specified dates to cash flows that are solely
+payments of principal and interest (SPPI) on the
+principal amount outstanding.
+Contractual terms of the asset give rise on
+The asset is held within a business model
+whose objective is to hold assets for collecting
+contractual cash flows, and
+b)
+a)
+if both the following conditions are met:
+A 'debt instrument' is measured at the amortised cost
+Debt instruments at amortised cost
+⚫ Equity instruments measured at fair value through
+other comprehensive income (FVTOCI)
+h.
+As at
+March 31, 2021
+The carrying amounts of the Company's non-
+financial assets are reviewed at each reporting date
+to determine whether there is any indication of
+The Company has elected to recognise its investments
+in equity instruments in subsidiaries and associates at
+cost in the separate financial statements in accordance
+with the option available in Ind AS 27, 'Separate
+Financial Statements'. Impairment policy applicable on
+such investments is explained in Note 2.2.g.
+Goodwill and Other Intangible assets
+Goodwill
+Software for internal use, which is primarily acquired
+from third-party vendors and which is an integral part
+of a tangible asset, including consultancy charges for
+implementing the software, is capitalised as part of the
+related tangible asset. Subsequent costs associated
+with maintaining such software are recognised
+as expense as incurred. The capitalised costs are
+amortised over the lower of the estimated useful life
+of the software and the remaining useful life of the
+tangible fixed asset.
+10
+Furniture and fixtures
+2-5
+Office equipment
+5-10
+Vehicles
+3-25
+Plant and equipment
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-
+controlling interest in the acquiree, over the fair
+value of the Company's share of identifiable net
+assets acquired. Goodwill is measured at cost less
+accumulated impairment losses.
+30
+Buildings other than Factory Buildings
+Buildings given under operating lease
+10-30
+Factory Buildings
+No. of years
+Asset Category
+The estimated useful lives are as follows:
+Depreciation is recognised on the cost of assets (other
+than freehold land and Capital work-in-progress) less
+their residual values on straight-line method over their
+useful lives as indicated in Part C of Schedule II of the
+Companies Act, 2013. Leasehold improvements are
+depreciated over period of the lease agreement or the
+useful life, whichever is shorter. Depreciation methods,
+useful lives and residual values are reviewed at the
+end of each reporting period, with the effect of any
+changes in estimate accounted for on a prospective
+basis.
+Items of property, plant and equipment acquired
+through exchange of non-monetary assets are
+measured at fair value, unless the exchange
+transaction lacks commercial substance or the fair
+value of either the asset received or asset given up is
+not reliably measurable, in which case the acquired
+asset is measured at the carrying amount of the asset
+given up.
+e.
+for the year ended March 31, 2021
+60
+Other Intangible assets
+Other Intangible assets that are acquired by the
+Company and that have finite useful lives are measured
+at cost less accumulated amortisation and accumulated
+impairment losses, if any. Subsequent expenditures
+are capitalised only when they increase the future
+economic benefits embodied in the specific asset to
+which they relate.
+Research and development
+Investments in the nature of equity in subsidiaries and
+associates
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits are
+expected from their use. Gain or loss arising on such
+de-recognition is recognised in profit or loss, and are
+measured as the difference between the net disposal
+proceeds, if any, and the carrying amount of respective
+intangible assets as on the date of de-recognition.
+De-recognition of intangible assets
+The estimated useful life and amortisation method are
+reviewed at the end of each reporting period, with the
+effect of any changes in estimate being accounted for
+on a prospective basis.
+The estimated useful lives for Product related
+intangibles and Other intangibles ranges from 3 to 20
+years.
+Amortisation is recognised on a straight-line basis
+over the estimated useful lives of intangible assets.
+Intangible assets that are not available for use are
+amortised from the date they are available for use.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate. All other
+expenditures, including expenditures on internally
+generated goodwill and brands, are recognised in the
+statement of profit and loss as incurred.
+The consideration for acquisition of intangible asset
+which is based on reaching specific milestone that
+are dependent on the Company's future activity
+is recognised only when the activity requiring the
+payment is performed.
+an indication that the assets may be impaired. All other
+intangible assets are tested for impairment when there
+are indications that the carrying value may not be
+recoverable.
+g.
+f.
+Financial Statements
+Standalone Accounts
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+116
+Acquired research and development intangible assets
+which are under development, are recognised as In-
+Process Research and Development assets ("IPR&D").
+IPR&D assets are not amortised, but evaluated for
+potential impairment on an annual basis or when
+there are indications that the carrying value may
+not be recoverable. Any impairment charge on such
+IPR&D assets is recognised in profit or loss. Intangible
+assets relating to products under development, other
+intangible assets not available for use and intangible
+assets having indefinite useful life are tested for
+impairment annually, or more frequently when there is
+Payments to third parties that generally take the form
+of up-front payments and milestones for in-licensed
+products, compounds and intellectual property are
+capitalised since the probability of expected future
+economic benefits criterion is always considered to be
+satisfied for separately acquired intangible assets.
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable
+to preparing the asset for its intended use. Other
+development expenditure is recognised in profit or loss
+as incurred.
+⚫ the Company intends to and has sufficient
+resources/ability to complete development and to
+use or sell the asset.
+• future economic benefits are probable; and
+⚫ the product or process is technically and
+commercially feasible;
+⚫ development costs can be measured reliably;
+Expenditure on research activities undertaken with
+the prospect of gaining new scientific or technical
+knowledge and understanding are recognised as
+an expense when incurred. Development activities
+involve a plan or design for the production of new
+or substantially improved products and processes.
+An internally-generated intangible asset arising from
+development is recognised if and only if all of the
+following have been demonstrated:
+Impairment of non-financial assets
+* in Million
+• Level 3 inputs are unobservable inputs for the asset
+or liability.
+Changes in fair value
+16,429.1
+Income tax paid (net of refund)
+(2,376.7)
+(3,370.6)
+Net cash generated from operating activities (A)
+17,372.5
+13,058.5
+B. Cash flow from investing activities
+Payments for purchase of property, plant and equipment (including capital work-in-
+(7,514.2)
+(5,718.0)
+progress, intangible assets and intangible assets under development)
+Proceeds from disposal of property, plant and equipment and intangible assets
+529.4
+63.5
+19,749.2
+Loans/Inter corporate deposits
+4.5
+(10,720.1)
+(17.3)
+(2,502.9)
+2,353.2
+2,399.4
+31,232.9
+30,359.1
+(5,320.5)
+1,589.5
+(4,621.7)
+(9,217.2)
+1,557.7
+2,975.3
+4,500.4
+1,438.0
+(834.1)
+(6,765.5)
+(75.6)
+Given to
+Received back / matured from
+Interest received
+Dividend received from
+Subsidiary companies
+Net cash (used in) / from investing activities (B)
+C. Cash flow from financing activities
+Proceeds from borrowings
+Subsidiary company
+Others
+16.5
+551.5
+424.0
+283.5
+383.4
+(6,018.0)
+13,500.7
+14,792.9
+95,133.0
+Fixed deposits/ margin money matured
+Subsidiary companies
+(278.6)
+Fixed deposits/ margin money placed
+Subsidiary companies
+Purchase of investments
+(9,206.3)
+(1,508.7)
+5,623.4
+128.2
+Others
+(78,361.0)
+(148,662.5)
+Proceeds from sale of investments
+Subsidiary companies
+Others
+82,098.3
+8,570.9
+147,862.4
+Bank balances not considered as cash and cash equivalents
+(11.5)
+535.4
+43.2
+(2,244.3)
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+Financial Statements
+Standalone Accounts
+Sun Pharmaceutical Industries Limited
+CARE
+Standalone Cash Flow Statement
+for the year ended March 31, 2021
+Particulars
+A. Cash flow from operating activities
+Year ended
+March 31, 2021
+* in Million
+Year ended
+Managing Director
+March 31, 2020
+DILIP S. SHANGHVI
+SUNIL R. AJMERA
+1,485.9
+443.4 250,401.6
+^ Represents remeasurements of the defined benefit plans
+The accompanying notes are an integral part of the standalone financial statements
+As
+per our report of even date
+For SRBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Date: May 27, 2021
+111
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Company Secretary
+Profit before tax
+Other changes
+32,530.0
+Effect of exchange rate changes
+Operating profit before working capital changes
+Movements in working capital:
+(Increase)/ decrease in inventories
+(Increase)/ decrease in trade receivables
+(Increase) decrease in other assets
+Increase/(decrease) in trade payables
+Increase / (decrease) in other liabilities
+Increase (decrease) in provisions
+Cash generated from operations
+9.7
+(7.2)
+(107.3)
+(0.4)
+(121.4)
+(0.4)
+Reversal of provision in respect of losses of a subsidiary
+Sundry balances written back, net
+Provision / write off / (reversal) for doubtful trade receivables / advances
+Gain on sale of investment in subsidiary
+Adjustments for:
+Depreciation and amortisation expense
+5,868.1
+5,615.6
+Loss on sale/write off of property, plant and equipment and intangible assets, net
+Finance costs
+19.2
+51.0
+34,178.4
+2,569.8
+Interest income
+(592.3)
+(700.6)
+Dividend income on investments
+(383.4)
+(9,258.3)
+Net loss/(gain) arising on financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net (gain) / loss on sale of financial assets measured at fair value through other
+comprehensive income
+4,080.1
+46,000.0
+21,528.7
+71,362.2
+Net increase/ (decrease) in cash and cash equivalents (A+B+C)
+Net cash used in financing activities (C)
+Dividend paid
+Dividend distribution tax
+(1,550.7)
+(2,970.7)
+(90,001.1)
+(4,250.0)
+(58.8)
+4,250.0
+(74,913.3)
+(22,670.7)
+(63,167.2)
+Finance costs
+Payment for share buy-back expenses
+Refund from /(Transfer to) escrow account for buy-back [Refer Note 55 (8)]
+Others @
+Subsidiary companies @
+Repayment of borrowings
+Year ended
+March 31, 2020
+* in Million
+Year ended
+Financial Statements
+Standalone Accounts
+Particulars
+for the year ended March 31, 2021
+Standalone Cash Flow Statement
+112
+(15,594.7)
+(13,791.9)
+March 31, 2021
+(11,262.9)
+91.6
+(1,928.9)
+Effect of changes in foreign exchange rates
+Changes from financing cash flows
+Opening balance
+2 Change in financial liability / asset arising from financing activities
+Cash and cash equivalents in cash flow statement (Refer Note 15)
+Cash on hand
+In current accounts
+Balances with banks
+Particulars
+Cash and cash equivalents comprises of
+1
+Particulars
+@ Includes payment of lease obligation.
+Notes:
+(860.1)
+Cash and cash equivalents at the beginning of the year
+3,027.6
+Effect of exchange differences on restatement of foreign currency cash and cash
+equivalents
+2,205.0
+37.5
+Cash and cash equivalents at the end of the year
+2,223.4
+2,205.0
+(73.2)
+(28,711.5)
+CARE
+Notes to the Standalone Financial Statements
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method
+with actuarial valuations being carried out at the end
+of each annual reporting period. The present value
+of the defined benefit obligation is determined by
+discounting the estimated future cash outflows by
+reference to market yields at the end of the reporting
+period on government bonds. The currency and
+term of the government bonds shall be consistent
+with the currency and estimated term of the post-
+employment benefit obligations. The current service
+cost of the defined benefit plan, recognised in the
+profit or loss as employee benefits expense, reflects
+the increase in the defined benefit obligation resulting
+from employee service in the current year, benefit
+changes, curtailments and settlements. Past service
+costs are recognised in profit or loss in the period of
+a plan amendment. The net interest cost is calculated
+by applying the discount rate to the net balance of
+the defined benefit obligation and the fair value of
+plan assets. This cost is included in employee benefit
+expense in profit or loss. Actuarial gains and losses
+arising from experience adjustments and changes
+in actuarial assumptions are charged or credited to
+OCI in the period in which they arise and is reflected
+immediately in retained earnings and is not reclassified
+to profit or loss.
+for the year ended March 31, 2021
+item, it is recognised in the statement of profit and
+loss on a systematic basis over the periods that the
+related costs, for which it is intended to compensate,
+are expensed. When the grant relates to an asset,
+the Company deducts such grant amount from the
+carrying amount of the asset.
+q.
+Employee benefits
+Defined benefit plans
+The Company operates a defined benefit gratuity plan
+which requires contribution to be made to a separately
+administered fund.
+The Company treats accumulated leave expected to be
+carried forward beyond twelve months, as long-term
+employee benefit for measurement purposes. Such
+long-term compensated absences are provided for
+based on the actuarial valuation using the projected
+unit credit method at the year-end. Actuarial gains/
+losses are immediately taken to the statement of profit
+and loss and are not deferred.
+Termination benefits are recognised as an expense in
+the statement of profit and loss when the Company is
+demonstrably committed, without realistic possibility
+of withdrawal, to a formal detailed plan to either
+terminate employment before the normal retirement
+date, or to provide termination benefits as a result of
+an offer made to encourage voluntary redundancy.
+Termination benefits for voluntary redundancies are
+recognised as an expense in the statement of profit
+and loss if the Company has made an offer encouraging
+voluntary redundancy, it is probable that the offer will
+be accepted, and the number of acceptances can be
+estimated reliably.
+Short-term and Other long-term employee benefits
+Accumulated leave, which is expected to be utilised
+within the next 12 months, is treated as short-term
+employee benefit. The Company measures the
+expected cost of such absences as the additional
+amount that it expects to pay as a result of the unused
+entitlement that has accumulated at the reporting
+date.
+The Company's net obligation in respect of other long
+term employee benefits is the amount of future benefit
+that employees have earned in return for their service
+in the current and previous periods. That benefit is
+discounted to determine its present value.
+Defined contribution plans
+The Company's contributions to defined contribution
+plans are recognised as an expense as and when the
+services are received from the employees entitling
+them to the contributions. The Company does not
+have any obligation other than the contribution made.
+Share-based payment arrangements
+Sun Pharmaceutical Industries Limited
+The grant date fair value of options granted to
+employees is recognised as an employee expense,
+with a corresponding increase in equity, on a straight
+line basis, over the vesting period, based on the
+Company's estimate of equity instruments that will
+eventually vest. At the end of each reporting period,
+the Company revises its estimate of the number of
+equity instruments expected to vest. The impact of the
+revision of the original estimates, if any, is recognised
+in profit or loss such that the cumulative expense
+reflects the revised estimate, with a corresponding
+adjustment to the equity-settled employee benefits
+Termination benefits
+125
+p.
+The Company recognises government grants only
+when there is reasonable assurance that the conditions
+attached to them will be complied with, and the grants
+will be received. When the grant relates to an expense
+reserve.
+Sales returns
+The Company accounts for sales returns accrual by
+recording an allowance for sales returns concurrent
+with the recognition of revenue at the time of
+a product sale. This allowance is based on the
+Company's estimate of expected sales returns.
+With respect to established products, the Company
+considers its historical experience of sales returns,
+levels of inventory in the distribution channel,
+estimated shelf life, product discontinuances, price
+changes of competitive products, and the introduction
+of competitive new products, to the extent each of
+these factors impact the Company's business and
+markets. With respect to new products introduced
+by the Company, such products have historically
+been either extensions of an existing line of product
+where the Company has historical experience or in
+therapeutic categories where established products
+exist and are sold either by the Company or the
+Company's competitors.
+Contract balances
+Contract assets
+A contract asset is the right to consideration in
+exchange for goods or services transferred to the
+customer. If the Company performs by transferring
+goods or services to a customer before the
+customer pays consideration or before payment is
+due, a contract asset is recognised for the earned
+consideration that is conditional.
+Trade receivables
+A receivable represents the Company's right to an
+amount of consideration that is unconditional (i.e., only
+O.
+Annual Report 2020-21
+the passage of time is required before payment of the
+consideration is due).
+A contract liability is the obligation to transfer goods
+or services to a customer for which the Company has
+received consideration (or an amount of consideration
+is due) from the customer. If a customer pays
+consideration before the Company transfers goods
+or services to the customer, a contract liability is
+recognised when the payment is made or the payment
+is due (whichever is earlier). Contract liabilities are
+recognised as revenue when the Company performs
+under the contract.
+Rendering of services
+Revenue from services rendered is recognised in the
+profit or loss as the underlying services are performed.
+Upfront non-refundable payments received are
+deferred and recognised as revenue over the expected
+period over which the related services are expected to
+be performed.
+Royalties
+Royalty revenue is recognised on an accrual basis
+in accordance with the substance of the relevant
+agreement (provided that it is probable that economic
+benefits will flow to the Company and the amount
+of revenue can be measured reliably). Royalty
+arrangements that are based on production, sales and
+other measures are recognised by reference to the
+underlying arrangement.
+Dividend and interest income
+Dividend income is recognised when the Company's
+right to receive the payment is established, which is
+generally when shareholders approve the dividend.
+Interest income from a financial asset is recognised
+when it is probable that the economic benefits will
+flow to the Company and the amount of income can be
+measured reliably. Interest income is accrued on a time
+basis, by reference to the principal outstanding and at
+the effective interest rate applicable, which is the rate
+that exactly discounts estimated future cash receipts
+through the expected life of the financial asset to that
+asset's net carrying amount on initial recognition.
+Government grants
+Contract liabilities
+For cash-settled share-based payments, a liability
+is recognised for the goods or services acquired,
+measured initially at the fair value of the liability. At
+the end of each reporting period until the liability is
+settled, and at the date of settlement, the fair value
+u.
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+consist of an initial up-front payment on inception of
+the license and subsequent payments dependent on
+achieving certain milestones in accordance with the
+terms prescribed in the agreement. Non-refundable
+up-front license fees received in connection with
+product out-licensing agreements are deferred and
+recognised over the period in which the Company
+has continuing performance obligations. Milestone
+payments which are contingent on achieving certain
+clinical milestones are recognised as revenues either
+on achievement of such milestones, if the milestones
+are considered substantive, or over the period the
+Company has continuing performance obligations,
+if the milestones are not considered substantive. If
+milestone payments are creditable against future
+royalty payments, the milestones are deferred and
+released over the period in which the royalties are
+anticipated to be received.
+shares issues including for changes effected prior to
+the approval of the financial statements by the Board
+of Directors.
+Business combination
+The Company uses the acquisition method of
+accounting to account for business combinations
+that occurred on or after April 01, 2015. The
+acquisition date is generally the date on which
+control is transferred to the acquirer. Judgment
+is applied in determining the acquisition date and
+determining whether control is transferred from one
+party to another. Control exists when the Company
+is exposed to, or has rights to, variable returns from
+its involvement with the entity and has the ability
+to affect those returns through power over the
+entity. In assessing control, potential voting rights
+are considered only if the rights are substantive. The
+Company measures goodwill as of the applicable
+acquisition date at the fair value of the consideration
+transferred, including the recognised amount of any
+non-controlling interest in the acquiree and the fair
+value of the acquirer's previously held equity interest
+in the acquiree (if any), less the net recognised amount
+of the identifiable assets acquired and liabilities
+assumed. When the fair value of the net identifiable
+assets acquired and liabilities assumed exceeds the
+consideration transferred, a bargain purchase gain is
+recognised immediately in the OCI and accumulates
+the same in equity as Capital Reserve where there
+exists clear evidence of the underlying reasons for
+classifying the business combination as a bargain
+purchase else the gain is directly recognised in equity
+as Capital Reserve. Consideration transferred includes
+the fair values of the assets transferred, liabilities
+incurred by the Company to the previous owners
+of the acquiree, and equity interests issued by the
+Company. Consideration transferred also includes the
+fair value of any contingent consideration. Changes
+in the fair value of the contingent consideration
+that qualify as measurement period adjustments
+are adjusted retrospectively, with corresponding
+adjustments against goodwill or capital reserve, as the
+case maybe. The subsequent accounting for changes
+in the fair value of the contingent consideration that
+do not qualify as measurement period adjustments
+depends on how the contingent consideration is
+classified. Contingent consideration that is classified
+as equity is not remeasured at subsequent reporting
+dates and its subsequent settlement is accounted
+for within equity. Contingent consideration that
+is classified as an asset or a liability is remeasured
+at fair value at subsequent reporting dates with
+the corresponding gain or loss being recognised in
+profit or loss. Consideration transferred does not
+V.
+W.
+include amounts related to settlement of pre-existing
+relationships.
+A contingent liability of the acquiree is assumed
+in a business combination only if such a liability
+represents a present obligation and arises from a past
+event, and its fair value can be measured reliably.
+On an acquisition-by-acquisition basis, the Company
+recognises any non-controlling interest in the acquiree
+either at fair value or at the non-controlling interest's
+proportionate share of the acquiree's identifiable net
+assets. Transaction costs that the Company incurs
+in connection with a business combination, such as
+finder's fees, legal fees, due diligence fees and other
+professional and consulting fees, are expensed as
+incurred.
+If the business combination is achieved in stages, any
+previously held equity interest is re-measured at its
+acquisition date fair value and any resulting gain or loss
+is recognised in profit or loss or OCI, as appropriate.
+If the initial accounting for a business combination
+is incomplete by the end of the reporting period in
+which the combination occurs, the Company reports
+provisional amounts for the items for which the
+accounting is incomplete. Those provisional amounts
+are adjusted during the measurement period (see
+above), or additional assets or liabilities are recognised,
+to reflect new information obtained about facts and
+circumstances that existed at the acquisition date that,
+if known, would have affected the amounts recognised
+at that date.
+Business Combination involving entities or businesses
+under common control shall be accounted for using the
+pooling of interest method.
+Exceptional items
+Exceptional items refer to items of income or expense,
+including tax items, within the statement of profit and
+loss from ordinary activities which are non-recurring
+and are of such size, nature or incidence that their
+separate disclosure is considered necessary to explain
+the performance of the Company.
+Recent Accounting pronouncements
+Standards issued but not yet effective and not early
+adopted by the Company
+The Ministry of Corporate Affairs ("MCA") notifies new
+standard or amendments to the existing standards.
+There is no such notification which would have been
+applicable from April 01, 2021.
+128
+Out-licensing arrangements
+Notes to the Standalone Financial Statements
+CARE
+Sun Pharmaceutical Industries Limited
+127
+for the year ended March 31, 2021
+Financial Statements
+Standalone Accounts
+r.
+S.
+of the liability is remeasured, with any changes in fair
+value recognised in profit or loss for the year.
+Borrowing costs
+Borrowing costs that are directly attributable to the
+construction or production of a qualifying asset are
+capitalised as part of the cost of that asset. All other
+borrowing costs are expensed in the period in which
+they occur. Borrowing costs consist of interest and
+other costs that an entity incurs in connection with
+the borrowing of funds. Borrowing cost also includes
+exchange differences to the extent regarded as an
+adjustment to the borrowing costs. A qualifying asset
+is one that necessarily takes substantial period of time
+to get ready for its intended use.
+Income tax
+Income tax expense consists of current and deferred
+tax. Income tax expense is recognised in profit or
+loss except to the extent that it relates to items
+recognised in OCI or directly in equity, in which case it
+is recognised in OCI or directly in equity respectively.
+Current tax is the expected tax payable on the
+taxable profit for the year, using tax rates enacted
+or substantively enacted by the end of the reporting
+period, and any adjustment to tax payable in respect of
+previous years. Current tax assets and tax liabilities are
+offset where the Company has a legally enforceable
+right to offset and intends either to settle on a net
+basis, or to realise the asset and settle the liability
+simultaneously.
+126
+Deferred tax is recognised on temporary differences
+between the carrying amounts of assets and liabilities
+in the financial statements and the corresponding tax
+bases used in the computation of taxable profit.
+The Company recognises a deferred tax asset arising
+from unused tax losses or tax credits only to the
+extent that the entity has sufficient taxable temporary
+differences or there is convincing other evidence that
+sufficient taxable profit will be available against which
+the unused tax losses or unused tax credits can be
+utilised by the entity.
+t.
+A deferred tax asset is recognised to the extent that it
+is probable that future taxable profits will be available
+against which the temporary difference can be utilised.
+Deferred tax assets are reviewed at each reporting
+date and are reduced to the extent that it is no longer
+probable that the related tax benefit will be realised.
+Withholding tax arising out of payment of dividends to
+shareholders under the Indian Income tax regulations
+is not considered as tax expense for the Company
+and all such taxes are recognised in the statement of
+changes in equity as part of the associated dividend
+payment.
+Minimum Alternate Tax ('MAT') credit is recognised as
+deferred tax asset only when and to the extent there is
+convincing evidence that the Company will pay normal
+income tax during the period for which the MAT credit
+can be carried forward for set-off against the normal
+tax liability. MAT credit recognised as an asset is
+reviewed at each Balance Sheet date and written down
+to the extent the aforesaid convincing evidence no
+longer exists.
+Accruals for uncertain tax positions require
+management to make judgments of potential
+exposures. Accruals for uncertain tax positions are
+measured using either the most likely amount or the
+expected value amount depending on which method
+the entity expects to better predict the resolution of
+the uncertainty. Tax benefits are not recognised unless
+the management based upon its interpretation of
+applicable laws and regulations and the expectation of
+how the tax authority will resolve the matter concludes
+that such benefits will be accepted by the authorities.
+Once considered probable of not being accepted,
+management reviews each material tax benefit and
+reflects the effect of the uncertainty in determining
+the related taxable amounts.
+Earnings per share
+The Company presents basic and diluted earnings per
+share ("EPS") data for its equity shares. Basic EPS is
+calculated by dividing the profit or loss attributable to
+equity shareholders of the Company by the weighted
+average number of equity shares outstanding during
+the period. Diluted EPS is determined by adjusting
+the profit or loss attributable to equity shareholders
+and the weighted average number of equity shares
+outstanding for the effects of all dilutive potential
+ordinary shares, which includes all stock options
+granted to employees.
+The number of equity shares and potentially dilutive
+equity shares are adjusted retrospectively for all
+periods presented for any share splits and bonus
+Annual Report 2020-21
+Deferred tax is measured at the tax rates that are
+expected to be applied to the temporary differences
+when they reverse, based on the laws that have been
+enacted or substantively enacted by the end of the
+reporting period. Deferred tax assets and liabilities are
+offset if there is a legally enforceable right to set off
+corresponding current tax assets against current tax
+liabilities and the deferred tax assets and deferred tax
+liabilities relate to income taxes levied by the same tax
+authority on the Company.
+for the year ended March 31, 2021
+occur.
+Cash and cash equivalents in the balance sheet
+comprise cash at banks and on hand and short-term
+deposits with an original maturity of three months
+or less, which are subject to an insignificant risk of
+changes in value.
+The right-of-use assets are also subject to
+impairment. Refer to the accounting policies in
+section (g) Impairment of non-financial assets.
+Lease Liabilities
+At the commencement date of the lease, the
+Company recognises lease liabilities measured at
+the present value of lease payments to be made
+over the lease term. The lease payments include
+fixed payments (including insubstance fixed
+payments) less any lease incentives receivable,
+variable lease payments that depend on an index
+122
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+2-10 years
+10-25 years
+60-99 years
+Financial Statements
+Standalone Accounts
+In calculating the present value of lease payments,
+the Company uses its incremental borrowing rate
+at the lease commencement date because the
+interest rate implicit in the lease is not readily
+determinable. After the commencement date, the
+amount of lease liabilities is increased to reflect
+the accretion of interest and reduced for the lease
+payments made. In addition, the carrying amount
+of lease liabilities is remeasured if there is a
+modification, a change in the lease term, a change
+in the lease payments (e.g., changes to future
+payments resulting from a change in an index
+or rate used to determine such lease payments)
+or a change in the assessment of an option to
+purchase the underlying asset.
+iii) Short-term leases and leases of low-value assets
+The Company applies the short-term lease
+recognition exemption to its short-term leases
+(i.e., those leases that have a lease term of 12
+months or less from the commencement date
+and do not contain a purchase option). It also
+applies the lease of low-value assets recognition
+exemption to leases that are considered to be
+low value. Lease payments on short-term leases
+and leases of low-value assets are recognised as
+expense on a straight-line basis over the lease
+term.
+Company as a lessor
+Rental income from operating lease is generally
+recognised on a straight-line basis over the
+term of the relevant lease. Where the rentals
+are structured solely to increase in line with
+expected general inflation to compensate for the
+Company's expected inflationary cost increases,
+such increases are recognised in the year in which
+such benefits accrue. Initial direct costs incurred
+in negotiating and arranging an operating lease
+are added to the carrying amount of the leased
+asset and recognised over the lease term on the
+same basis as rental income. Contingent rents are
+recognised as revenue in the period in which they
+are earned.
+k.
+I.
+or a rate, and amounts expected to be paid under
+residual value guarantees. The lease payments
+also include the exercise price of a purchase
+option reasonably certain to be exercised by
+the Company and payments of penalties for
+terminating the lease, if the lease term reflects
+the Company exercising the option to terminate.
+Building
+The Company recognises right-of-use assets at
+the commencement date of the lease (i.e., the
+date the underlying asset is available for use).
+Right-of-use assets are measured at cost, less
+any accumulated depreciation and impairment
+losses, and adjusted for any remeasurement of
+lease liabilities. The cost of right-of-use assets
+includes the amount of lease liabilities recognised,
+initial direct costs incurred, and lease payments
+made at or before the commencement date less
+any lease incentives received. Right-of-use assets
+are depreciated on a straight-line basis over the
+shorter of the lease term and the estimated useful
+lives of the assets, as follows:
+Right-of-use assets
+(ii) Cash flow hedges
+The effective portion of changes in the fair value
+of the hedging instrument is recognised in OCI in
+the cash flow hedge reserve, while any ineffective
+portion is recognised immediately in profit or loss.
+The Company uses forward currency contracts
+as hedges of its exposure to foreign currency risk
+in forecast transactions and firm commitments.
+Amounts recognised as OCI are transferred
+to profit or loss when the hedged transaction
+affects profit or loss, such as when a forecast sale
+occurs. When the hedged item is the cost of a
+non-financial asset or non-financial liability, the
+amounts recognised as OCI are transferred to the
+initial carrying amount of the non-financial asset
+or liability.
+If the hedging instrument expires or is sold,
+terminated or exercised or if its designation as a
+hedge is revoked, or when the hedge no longer
+meets the criteria for hedge accounting, any
+cumulative gain or loss previously recognised in
+OCI remains separately in equity until the forecast
+transaction occurs or the foreign currency firm
+commitment is met. When a forecast transaction
+is no longer expected to occur, the gain or loss
+accumulated in equity is recognised immediately
+in profit or loss.
+Treasury shares
+The Company has created an Employee Benefit
+Trust (EBT) for providing share-based payment to its
+employees. The Company uses EBT as a vehicle for
+distributing shares to employees under the employee
+remuneration schemes. The Company treats EBT as
+its extension and shares held by EBT are treated as
+treasury shares.
+Own equity instruments that are reacquired (treasury
+shares) are deducted from equity. No gain or loss
+is recognised in profit or loss on the purchase, sale,
+issue or cancellation of the Company's own equity
+instruments. Consideration paid or received shall be
+recognised directly in equity.
+Dividend distribution to equity holders of the Company
+The Company recognises a liability to make dividend
+distributions to equity holders of the Company when
+the distribution is authorised and the distribution
+is no longer at the discretion of the Company. As
+per the corporate laws in India, a distribution is
+authorised when it is approved by the shareholders. A
+corresponding amount is recognised directly in equity.
+j.
+Leases
+The Company assesses at contract inception whether
+a contract is, or contains, a lease. That is, if the
+contract conveys the right to control the use of an
+identified asset for a period of time in exchange for
+consideration. To assess whether a contract conveys
+the right to control the use of an identified asset, the
+Company assesses whether: (i) the contract involves
+the use of an identified asset (ii) the Company has
+substantially all of the economic benefits from use of
+the asset through the period of the lease and (iii) the
+Company has the right to direct the use of the asset.
+Company as a lessee
+The Company applies a single recognition and
+measurement approach for all leases, except for
+short-term leases and leases of low-value assets. The
+Company recognises lease liabilities to make lease
+payments and right-of-use assets representing the
+right to use the underlying assets.
+i)
+ii)
+m.
+for the year ended March 31, 2021
+Inventories
+Cost of raw materials and packing materials, stock-in-
+trade, stores and spares includes cost of purchases and
+other costs incurred in bringing the inventories to its
+present location and condition.
+(i)
+Possible obligations which will be confirmed only
+by future events not wholly within the control of
+the Company, or
+(ii) Present obligations arising from past events
+where it is not probable that an outflow of
+resources will be required to settle the obligation
+or a reliable estimate of the amount of the
+obligation cannot be made.
+Contingent assets are not recognised in the financial
+statements. A contingent asset is disclosed where an
+inflow of economic benefits is probable. Contingent
+assets are assessed continually and, if it is virtually
+certain that an inflow of economic benefits will arise,
+n.
+the asset and related income are recognised in the
+period in which the change occurs.
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+Revenue
+Revenue from contracts with customers is recognised
+when control of the goods or services are transferred
+to the customer at an amount that reflects the
+consideration to which the Company expects to be
+entitled in exchange for those goods or services.
+The Company has generally concluded that it is the
+principal in its revenue arrangements, since it is the
+primary obligor in all of its revenue arrangement, as
+it has pricing latitude and is exposed to inventory and
+credit risks. Revenue is stated net of goods and service
+tax and net of returns, chargebacks, rebates and other
+similar allowances. These are calculated on the basis
+of historical experience and the specific terms in the
+individual contracts.
+In determining the transaction price, the Company
+considers the effects of variable consideration,
+the existence of significant financing components,
+noncash consideration, and consideration payable
+to the customer (if any). The Company estimates
+variable consideration at contract inception until it
+is highly probable that a significant revenue reversal
+in the amount of cumulative revenue recognised will
+not occur when the associated uncertainty with the
+variable consideration is subsequently resolved.
+Profit Sharing Revenues
+Notes to the Standalone Financial Statements
+The Company from time to time enters into
+arrangements for the sale of its products in certain
+markets. Under such arrangements, the Company
+sells its products to the business partners at a base
+purchase price agreed upon in the arrangement and is
+also entitled to a profit share which is over and above
+the base purchase price. The profit share is typically
+dependent on the ultimate net sale proceeds or net
+profits, subject to any reductions or adjustments that
+are required by the terms of the arrangement.
+Revenue in an amount equal to the base purchase
+price is recognised in these transactions upon delivery
+of products to the business partners. An additional
+amount representing the profit share component is
+recognised as revenue only to the extent that it is
+highly probable that a significant reversal will not
+Sale of goods
+Present obligations arising under onerous contracts are
+recognised and measured as provisions. An onerous
+contract is considered to exist where the Company
+has a contract under which the unavoidable costs of
+meeting the obligations under the contract exceed the
+economic benefit expected to be received from the
+contract.
+Onerous contracts
+A provision for restructuring is recognised when
+the Company has a detailed formal restructuring
+plan and has raised a valid expectation in those
+affected that it will carry out the restructuring by
+starting to implement the plan or announcing its main
+features to those affected by it. The measurement
+of a restructuring provision includes only the direct
+expenditure arising from the restructuring, which are
+those amounts that are both necessarily entailed by
+the restructuring and not associated with the ongoing
+activities of the entity.
+Cost of work-in-progress and finished goods comprises
+direct material, direct labour and an appropriate
+proportion of variable and fixed overhead expenditure.
+Net realisable value is the estimated selling price in the
+ordinary course of business, less the estimated costs of
+completion and costs necessary to make the sale.
+The factors that the Company considers in determining
+the allowance for slow moving, obsolete and other
+non-saleable inventory include estimated shelf life,
+planned product discontinuances, price changes,
+ageing of inventory and introduction of competitive
+new products, to the extent each of these factors
+impact the Company's business and markets. The
+Company considers all these factors and adjusts the
+inventory provision to reflect its actual experience on a
+periodic basis.
+Cash and cash equivalents
+For the purpose of the statement of cash flows, cash
+and cash equivalents consist of cash and short-term
+deposits, as defined above, net of outstanding bank
+overdrafts as they are considered an integral part of
+the Company's cash management.
+Provisions, contingent liabilities and contingent assets
+Provisions are recognised when the Company has a
+present obligation (legal or constructive) as a result of
+past event, it is probable that an outflow of resources
+embodying economic benefits will be required to
+settle the obligation and a reliable estimate can be
+made of the amount of obligation. When the Company
+Annual Report 2020-21
+123
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+expects some or all of a provision to be reimbursed,
+for example, under an insurance contract, the
+reimbursement is recognised as a separate asset, but
+only when the reimbursement is certain. The expense
+relating to a provision is presented in the statement of
+profit and loss net of any reimbursement.
+If the effect of the time value of money is material,
+provisions are determined by discounting the expected
+future cash flows at a pre-tax rate that reflects current
+market assessments of the time value of money and
+the risks specific to the liability. Where discounting is
+used, the increase in the provision due to the passage
+of time is recognised as a finance cost.
+Restructuring
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade, stores and
+spares and finished goods are measured at the lower of
+cost and net realisable value. The cost of all categories
+of inventories is based on the weighted average
+method.
+Notes to the Standalone Financial Statements
+Plant and Machinery
+Leasehold land
+121
+The Company follows 'simplified approach' for
+recognition of impairment loss allowance on trade
+receivables or any contractual right to receive cash or
+another financial asset.
+The application of simplified approach does not require
+the Company to track changes in credit risk. Rather, it
+recognises impairment loss allowance based on lifetime
+ECLs at each reporting date, right from its initial
+recognition. As a practical expedient, the Company
+uses a provision matrix to determine impairment
+loss allowance on portfolio of its trade receivables.
+The provision matrix is based on its historically
+observed default rates over the expected life of the
+trade receivables and is adjusted for forward-looking
+estimates. At every reporting date, the historical
+observed default rates are updated and changes in the
+forward-looking estimates are analysed.
+Financial liabilities and equity instruments
+Classification as debt or equity
+Debt and equity instruments issued by the Company
+are classified as either financial liabilities or as equity
+in accordance with the substance of the contractual
+arrangements and the definitions of a financial liability
+and an equity instrument.
+Equity instruments
+An equity instrument is any contract that evidences
+a residual interest in the assets of an entity after
+deducting all of its liabilities. Equity instruments
+Annual Report 2020-21
+119
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+issued by the Company are recognised at the proceeds
+received, net of direct issue costs.
+Repurchase of the Company's own equity instruments
+is recognised and deducted directly in equity. No gain
+or loss is recognised in profit or loss on the purchase,
+sale, issue or cancellation of the Company's own equity
+instruments.
+Compound financial instruments
+In accordance with Ind AS 109, the Company applies
+expected credit loss (ECL) model for measurement
+and recognition of impairment loss on the Trade
+receivables or any contractual right to receive cash or
+another financial asset that result from transactions
+that are within the scope of Ind AS 115.
+The component parts of compound financial
+instruments (convertible notes) issued by the Company
+are classified separately as financial liabilities and
+equity in accordance with the substance of the
+contractual arrangements and the definitions of a
+financial liability and an equity instrument.
+Impairment of financial assets
+Sun Pharmaceutical Industries Limited
+CARE
+Financial Statements
+Standalone Accounts
+124
+Revenues include amounts derived from product out-
+licensing agreements. These arrangements typically
+Financial Statements
+Standalone Accounts
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+Equity instruments
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which are
+held for trading are classified as at FVTPL. For all
+other equity instruments, the Company may make an
+irrevocable election to present subsequent changes
+in the fair value in OCI. The Company makes such
+election on an instrument-by-instrument basis. The
+classification is made on initial recognition and is
+irrevocable.
+If the Company decides to classify an equity
+instrument as at FVTOCI, then all fair value changes
+on the instrument, including foreign exchange gain
+or loss and excluding dividends, are recognised in the
+OCI. There is no recycling of the amounts from OCI
+to profit or loss, even on sale of investment. However,
+the Company may transfer the cumulative gain or loss
+within equity.
+Equity instruments included within the FVTPL
+category are measured at fair value with all changes
+recognised in the profit or loss.
+Derecognition
+A financial asset (or, where applicable, a part of a
+financial asset or part of a group of similar financial
+assets) is primarily derecognised (i.e. removed from the
+Company's balance sheet) when:
+• The contractual rights to receive cash flows from
+the asset have expired, or
+• The Company has transferred its rights to receive
+contractual cash flows from the asset or has
+assumed an obligation to pay the received cash
+flows in full without material delay to a third party
+under a 'pass-through' arrangement, and either (a)
+the Company has transferred substantially all the
+risks and rewards of the asset, or (b) the Company
+has neither transferred nor retained substantially
+all the risks and rewards of the asset, but has
+transferred control of the asset.
+When the Company has transferred its rights to
+receive cash flows from an asset or has entered into
+a pass-through arrangement, it evaluates if and to
+what extent it has retained the risks and rewards
+of ownership. When it has neither transferred nor
+retained substantially all of the risks and rewards of
+the asset, nor transferred control of the asset, the
+Company continues to recognise the transferred
+asset to the extent of the Company's continuing
+involvement. In that case, the Company also recognises
+an associated liability. The transferred asset and
+On derecognition of a financial asset in its entirety,
+the difference between the asset's carrying amount
+and the sum of the consideration received and
+receivable and the cumulative gain or loss that had
+been recognised in OCI and accumulated in equity is
+recognised in profit or loss if such gain or loss would
+have otherwise been recognised in profit or loss on
+disposal of that financial asset.
+Initial recognition and measurement
+the associated liability are measured on a basis that
+reflects the rights and obligations that the Company
+has retained.
+The Company's financial liabilities include trade and
+other payables, loans and borrowings including bank
+overdrafts and lease liabilities, financial guarantee
+contracts and derivative financial instruments.
+Changes in fair value of the designated portion of
+derivatives that qualify as fair value hedges are
+recognised in profit or loss immediately, together
+with any changes in the fair value of the hedged
+asset or liability that are attributable to the
+hedged risk.
+original liability and the recognition of a new liability.
+The difference between the carrying amount of the
+financial liability derecognised and the consideration
+paid and payable is recognised in profit or loss.
+Embedded derivatives
+Derivatives embedded in non-derivative host contracts
+that are not financial assets within the scope of Ind
+AS 109 are accounted for as separate derivatives and
+recorded at fair value if their economic characteristics
+and risks are not closely related to those of the host
+contracts and the host contracts are not held for
+trading or designated at fair value though profit or loss.
+These embedded derivatives are measured at fair value
+with changes in fair value recognised in profit or loss,
+unless designated as effective hedging instruments.
+Reclassification of financial assets
+The Company determines classification of financial
+assets and liabilities on initial recognition. After
+initial recognition, no reclassification is made for
+financial assets which are equity instruments and
+financial liabilities. For financial assets which are debt
+instruments, a reclassification is made only if there is
+a change in the business model for managing those
+assets. Changes to the business model are expected
+to be infrequent. The Company's senior management
+determines change in the business model as a result
+of external or internal changes which are significant
+to the Company's operations. Such changes are
+evident to external parties. A change in the business
+model occurs when the Company either begins or
+ceases to perform an activity that is significant to
+its operations. If the Company reclassifies financial
+assets, it applies the reclassification prospectively
+from the reclassification date which is the first day
+of the immediately next reporting period following
+the change in business model. The Company does
+not restate any previously recognised gains, losses
+(including impairment gains or losses) or interest.
+Financial Statements
+Standalone Accounts
+Derivative financial instruments and hedge accounting
+Initial recognition and subsequent measurement
+For the purpose of hedge accounting, hedges are
+classified as:
+⚫ Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+• Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable to
+a particular risk associated with a recognised asset
+or liability or a highly probable forecast transaction
+or the foreign currency risk in an unrecognised firm
+commitment.
+At the inception of a hedge relationship, the
+Company formally designates and documents the
+hedge relationship to which the Company wishes to
+apply hedge accounting and the risk management
+objective and strategy for undertaking the hedge.
+The documentation includes the Company's risk
+management objective and strategy for undertaking
+hedge, the hedging/economic relationship, the hedged
+item or transaction, the nature of the risk being
+hedged, hedge ratio and how the entity will assess the
+effectiveness of changes in the hedging instrument's
+fair value in offsetting the exposure to changes in the
+hedged item's fair value or cash flows attributable to
+the hedged risk. Such hedges are expected to be highly
+effective in achieving offsetting changes in fair value
+or cash flows and are assessed on an ongoing basis to
+determine that they actually have been highly effective
+throughout the financial reporting periods for which
+they were designated.
+Hedges that meet the strict criteria for hedge
+accounting are accounted for, as described below:
+All financial liabilities are recognised initially at fair
+value and, in the case of loans and borrowings and
+payables, net of directly attributable transaction costs.
+Any gains or losses arising from changes in the fair
+value of derivatives are taken directly to profit or loss,
+except for the effective portion of cash flow hedges,
+which is recognised in OCI and later reclassified to
+profit or loss when the hedge item affects profit or
+loss or treated as basis adjustment if a hedged forecast
+transaction subsequently results in the recognition of a
+non-financial asset or non-financial liability.
+for the year ended March 31, 2021
+The Company uses derivative financial instruments,
+such as forward currency contracts, full currency
+swap, principal only swap, options and interest rate
+swaps to hedge its foreign currency risks and interest
+rate risks respectively. Such derivative financial
+instruments are initially recognised at fair value on the
+date on which a derivative contract is entered into and
+are subsequently re-measured at fair value at the end
+of each reporting period. Derivatives are carried as
+financial assets when the fair value is positive and as
+financial liabilities when the fair value is negative.
+Annual Report 2020-21
+Subsequent measurement
+Notes to the Standalone Financial Statements
+All financial liabilities are subsequently measured at
+amortised cost using the effective interest method or
+at FVTPL.
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL when the
+financial liability is held for trading or is designated
+upon initial recognition as at fair value through
+profit or loss. Financial liabilities are classified as
+held for trading if they are incurred principally for
+the purpose of repurchasing in the near term or on
+initial recognition it is part of a portfolio of identified
+financial instruments that the Company manages
+together and has a recent actual pattern of short-term
+profit-taking. This category also includes derivative
+financial instruments that are not designated as
+hedging instruments in hedge relationships as defined
+by Ind AS 109. Gains or losses on liabilities held for
+trading are recognised in the profit or loss.
+Financial liabilities designated upon initial recognition
+at fair value through profit or loss are designated as
+such at the initial date of recognition, and only if the
+criteria in Ind AS 109 are satisfied. For instruments
+not held-for-trading financial liabilities designated
+as at FVTPL, fair value gains/losses attributable to
+changes in own credit risk are recognised in OCI,
+unless the recognition of the effects of changes in the
+liability's credit risk in OCI would create or enlarge an
+accounting mismatch in profit or loss, in which case
+these effects of changes in credit risk are recognised in
+profit or loss. These gains/losses are not subsequently
+transferred to profit or loss. All other changes in fair
+value of such liability are recognised in the statement
+of profit or loss.
+Financial liabilities subsequently measured at amortised
+cost
+Fair value hedges
+Financial liabilities that are not held-for-trading and are
+not designated as at FVTPL are measured at amortised
+cost in subsequent accounting periods. The carrying
+amounts of financial liabilities that are subsequently
+measured at amortised cost are determined based
+on the effective interest rate (EIR) method. Interest
+expense that is not capitalised as part of costs of an
+asset is included in the 'Finance costs' line item in the
+profit or loss.
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using the
+EIR method. Amortised cost is calculated by taking
+into account any discount or premium on acquisition
+and fees or costs that are an integral part of the EIR.
+The EIR amortisation is included as finance costs in the
+profit or loss.
+Financial guarantee contracts
+Financial guarantee contracts are those contracts
+that require a payment to be made to reimburse the
+holder for a loss it incurs because the specified debtor
+fails to make a payment when due in accordance with
+the terms of a debt instrument. Financial guarantee
+contracts are recognised initially as a liability at fair
+value, adjusted for transaction costs that are directly
+attributable to the issuance of the guarantee. If not
+designated as at FVTPL, are subsequently measured at
+the higher of the amount of loss allowance determined
+as per impairment requirements of Ind AS 109 and the
+amount initially recognised less cumulative amount of
+income recognised.
+Derecognition
+A financial liability is derecognised when the obligation
+under the liability is discharged or cancelled or
+expires. When an existing financial liability is replaced
+by another from the same lender on substantially
+different terms, or the terms of an existing liability
+are substantially modified, such an exchange or
+modification is treated as the derecognition of the
+120
+2.9
+50,000
+0.5
+50,000
+0.5
+Less: Impairment in value of investment
+(0.5)
+(0.5)
+Nimbua Greenfield (Punjab) Limited
+National savings certificates
+Watsun Infrabuild Private Limited
+Shares of 10 each fully paid
+Unquoted (Amortised cost)
+Shares of 10 each fully paid
+(March 31, 2020: *10,000)
+140,625
+1.4
+1.4
+283,500
+Shares of 10 each fully paid
+140,625
+9,340,000
+0.2
+for the year ended March 31, 2021
+124,007
+Notes to the Standalone Financial Statements
+Shimal Research Laboratories Limited
+Shares of 10 each fully paid
+Less: Impairment in value of investment
+1.0
+As at March 31, 2021
+Quantity
+* in Million
+Financial Statements
+Standalone Accounts
+As at March 31, 2020
+Quantity
+* in Million
+934.0
+9,340,000
+(934.0)
+934.0
+(934.0)
+Shivalik Solid Waste Management Limited
+Shares of 10 each fully paid
+20,000
+0.2
+20,000
+Biotech Consortium India Limited
+1.2
+Less: Impairment in value of investment
+85.4
+Annual Report 2020-21
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2020
+2.9
+3.4
+3.8
+4.0
+707.2
+* Loans have been granted for the purpose of their business.
+713.9
+133
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+NOTE: 8 OTHER FINANCIAL ASSETS (NON-CURRENT)
+100,000
+Deposits
+Security deposits (unsecured, considered good)
+7.4
+95.7
+Unsecured, considered good
+Unsecured, considered good
+0.0
+0.0
+95.7
+85.4
+Aggregate book value (carrying value) of quoted
+investments
+90.2
+81.6
+Aggregate amount of quoted investments at market
+value
+90.2
+Loans to related parties (Refer Note 50 & 51) *
+81.6
+940.0
+938.3
+impairment
+Aggregate amount of impairment in value of investments
+934.5
+934.5
+NOTE: 7 LOANS (NON-CURRENT)
+Loans to employees / others
+Secured, considered good
+Aggregate amount of unquoted investments before
+1.0
+0.1
+81.6
+Sun Pharma Holdings
+Shares of USD 1 each fully paid
+855,199,716
+54,031.5
+855,199,716
+54,031.5
+Sun Pharma (Netherlands) B.V.
+Ordinary Shares of Euro 100 each fully paid
+5,473,340
+39,877.3
+5,473,340
+39,877.3
+Ranbaxy Malaysia Sdn. Bhd.
+Ordinary Shares of RM 1 each fully paid
+3,189,248
+37.0
+3,189,248
+37.0
+Quoted (At cost less impairment in value of investments,
+0.1
+10,000
+10,000
+Shares of 10 each fully paid
+As at March 31, 2021
+Unbilled revenue (Refer Note 54)
+Quantity
+* in Million
+10,000
+0.1
+As at March 31, 2020
+Quantity
+* in Million
+10,000
+if any)
+0.1
+0.1
+10,000
+0.1
+16,360,000
+163.6
+16,360,000
+(163.6)
+163.6
+(163.6)
+Softdeal Pharmaceuticals Private Limited (formerly
+known as Softdeal Trading Company Private Limited)
+10,000
+100,000
+Zenotech Laboratories Limited
+Less: Impairment in value of investment
+3,318.5
+1,901.4
+1,229.5
+1,901.4
+516.4
+Other investments
+Investments in equity instruments
+Quoted (Fair value through other comprehensive income)
+Krebs Biochemicals and Industries Limited
+Shares of 10 each fully paid
+Unquoted (Fair value through profit and loss)
+Enviro Infrastructure Co. Limited
+Shares of 10 each fully paid
+132
+As at March 31, 2021
+Quantity
+* in Million
+As at March 31, 2020
+Quantity
+* in Million
+1,050,000
+90.2
+1,050,000
+3,318.5
+NOTE: 6 INVESTMENTS (NON-CURRENT)
+Aggregate amount of quoted investments at market
+value
+Aggregate amount of impairment in value of investments
+35,128,078
+3,318.5
+(1,737.8)
+1,580.7
+35,128,078
+3,318.5
+(1,737.8)
+1,580.7
+95,938.9
+95,938.9
+Preference shares - unquoted (At cost)
+Sun Pharma Holdings
+Shares of 10 each fully paid
+5% Optionally Convertible Preference Shares
+USD 1 each fully paid
+73,642.2
+1,165,593,148
+73,642.2
+169,581.1
+169,581.1
+Aggregate amount of unquoted investments before
+impairment
+168,164.0
+168,164.0
+Aggregate book value (carrying value) of quoted
+investments before impairment
+1,165,593,148
+NOTE: 9 DEFERRED TAX ASSETS (NET)
+(i)
+Recognised in
+profit or loss
+2,146.2
+15.6
+9.5
+1,669.8
+1,582.4
+3,912.9
+3,738.1
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2020
+14,404.5
+196.9
+11,407.4
+124.9
+14,601.4
+11,532.3
+10,198.9
+8,700.1
+5,092.2
+4,797.2
+2,227.5
+As at
+March 31, 2020
+As at
+March 31, 2021
+* in Million
+* includes amount paid under protest
+NOTE : 11 OTHER ASSETS (NON-CURRENT)
+Capital advances
+Prepaid expenses
+Balances with government authorities
+* includes amount paid under protest
+NOTE : 12 INVENTORIES
+Lower of cost and net realisable value
+Raw materials and packing materials
+Goods in transit
+Work-in-progress
+1,378.8
+Finished goods
+Stores and spares
+Financial Statements
+Standalone Accounts
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+20,826.3
+20,780.2
+20,826.3
+20,780.2
+Stock-in-trade
+1,024.2
+385.9
+282.9
+27,400,000
+27.0
+27.0
+407,322
+805.5
+179,523
+411.0
+BNP Paribas Mutual fund - BNP Paribas Liquid Fund -
+Direct Plan - Growth
+97,894
+Baroda Mutual Fund-Baroda Liquid fund-Plan B
+Growth
+310.0
+902.9
+PGIM India Mutual Fund-PGIM India Insta Cash
+3,100,626
+801.0
+MIRAE Asset Mutual Fund-Mirae Asset Cash
+Management Fund-Direct Plan-growth
+478,993
+1,003.3
+Shares of 10 each fully paid
+310.0
+310.0
+295,287
+Net of provisions 17,205.2 Million (March 31, 2020 : 14,765.9 Million)
+HSBC Global Asset Management-HSBC Cash Fund-
+Growth-Direct Plan
+Unquoted (Fair value through profit and loss)
+31,657.2
+26,336.7
+Inventory write downs are accounted considering the nature of inventory, estimated shelf life, planned product
+discontinuances, price changes, ageing of inventory and introduction of competitive new products as well as the
+provisioning policy. Write downs of inventories amounted to ₹8,433.6 Million (March 31, 2020: ₹9,860.2 Million).
+The changes in write downs are recognised as an expense in the statement of profit and loss.
+(ii) The cost of inventories recognised as an expense is disclosed in Notes 32, 33 and 36 and as purchases of stock-in-
+trade in the statement of profit and loss.
+Annual Report 2020-21
+135
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+*
+for the year ended March 31, 2021
+As at March 31, 2021
+Quantity
+*in Million
+As at March 31, 2020
+Quantity
+*in Million
+Investments in government securities
+Quoted (Fair value through other comprehensive income)
+8.01% Government of Rajasthan UDAY 2020
+Bond of 1 each fully paid maturing June 23, 2020
+Investments in mutual funds
+NOTE: 13 INVESTMENTS (CURRENT)
+Opening balance
+April 01, 2020
+Advance income tax
+for the year ended March 31, 2021
+(10.4)
+4.4
+(3.2)
+(9.2)
+Derivatives designated as hedges
+138.0
+(0.3)
+(375.8)
+(238.1)
+Deferred revenue
+532.5
+55.3
+587.8
+Allowance for doubtful debts and advances
+749.7
+5.3
+755.0
+Unbilled revenue
+19.7
+(6,081.4)
+(308.7)
+(5,772.7)
+Difference in carrying value and tax base of financial
+assets of investments
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+0.9
+0.9
+442.6
+414.3
+305.5
+19.7
+434.1
+849.3
+* in Million
+Recognised
+in other
+comprehensive
+income
+Closing balance
+March 31, 2021
+Deferred tax (liabilities) / assets in relation to:
+Difference between written down value of property,
+plant and equipment, intangible assets and capital
+work-in-progress as per books of accounts and income
+tax
+749.0
+Expenses that are allowed on payment basis
+548.8
+74.3
+Tax losses
+Tax losses (Capital in nature)
+Unabsorbed depreciation
+Unused tax credits (MAT credit entitlement)
+Deductible temporary differences
+63,153.8
+76,652.8
+13,581.1
+10,690.2
+Deductible temporary differences, unused tax losses and unused tax credits for which no
+deferred tax assets have been recognised are attributable to the following:
+28,088.7
+2,410.7
+2,874.3
+12,027.9
+19,779.3
+The unused tax credits will expire from financial year 2022-23 to financial year 2031-32 and unused tax losses will expire
+from financial year 2021-22 to financial year 2028-29.
+* Includes loss on sale of Investment in Sun Pharma France [formerly known as Ranbaxy Pharmacie Generiques SAS]. In
+the previous year, the Company sold its entire stake in Ranbaxy Nigeria Limited and Sun Pharma France, to Sun Pharma
+(Netherlands) B.V. as part of internal restructuring.
+Further, as a result of the sale, provision amounting to ₹2,502.9 Million made on account of provision in respect of losses of
+a subsidiary have been reversed in the previous years financial statements.
+134
+Notes to the Standalone Financial Statements
+28,634.9
+NOTE: 10 INCOME TAX ASSETS (NET) (NON-CURRENT)
+March 31, 2020
+As at
+March 31, 2021
+39.0
+662.1
+Unabsorbed depreciation / carried forward losses
+3,811.8
+490.1
+4,301.9
+Other assets
+2.3
+(0.1)
+As at
+2.2
+(340.0)
+MAT credit entitlement
+11,397.1
+1,977.4
+11,397.1
+2,317.4
+(340.0)
+13,374.5
+13,374.5
+* in Million
+340.0
+Skisen Labs Private Limited
+(2.5)
+Neetnav Real Estate Private Limited
+Shares of 10 each fully paid
+Realstone Multitrade Private Limited
+Annual Report 2020-21
+129
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+NOTE: 3 (b) RIGHT-OF-USE ASSETS
+* in Million
+Leasehold Land
+Building
+Plant and
+equipment
+Total
+As at March 31, 2019
+Reclassified from Property, plant and equipment
+898.0
+898.0
+Addition on account of transition to Ind AS 116
+200.1
+282.0
+(iii) The aggregate depreciation has been included under depreciation and amortisation expense in the Statement of Profit
+and Loss.
+For details of assets pledged as security refer Note 49.
+(ii)
+Buildings include ₹8,620 (As at March 31, 2020 : 8,620) towards cost of shares in a co-operative housing society and
+also includes 1.1 Million (As at March 31, 2020: *1.1 Million) and ₹1,133.0 Million (As at March 31, 2020: *1,133.0
+Million) towards cost of non-convertible preference shares of face value of 10/- each and compulsorily convertible
+debentures of face value of $10,000/- each in a Company respectively entitling the right of occupancy and use of
+premises and also includes ₹4.5 Million (March 31, 2020 : 4.5 Million) towards cost of flats not registered in the name
+of the Company but is entitled to right of use and occupancy.
+181.6 4,963.3
+(4.5)
+(51.4)
+(8.6) (228.5)
+2.0 22,666.2
+693.8
+288.2
+872.7 27,447.3
+Net book value
+3.6
+As at March 31, 2020
+As at March 31, 2021
+Footnotes
+1,374.5
+12,607.7
+12,468.8
+14.9 31,204.3
+14.9 31,340.2
+463.1
+406.7
+152.1
+148.9
+429.1 46,018.8
+624.7 46,378.7
+(i)
+1,147.6
+485.7
+Addition
+9.5
+Depreciation expense
+Deletion
+As at March 31, 2021
+Net right-of-use assets
+As at March 31, 2020
+As at March 31, 2021
+Footnotes
+For details of Ind AS 116 disclosure refer Note 48.
+NOTE: 4 GOODWILL / INTANGIBLE ASSETS
+Other than internally generated
+As at March 31, 2020
+14.5
+56.1
+166.2
+14.5
+95.6
+56.1
+166.2
+10.8
+122.3
+85.7
+95.6
+60.9
+Depreciation expense
+2,729.5
+1,857.3
+1,866.8
+As at March 31, 2020
+1,098.1
+291.5
+1,860.9
+3,250.5
+Addition
+163.3
+As at March 31, 2019
+98.5
+Deletion
+As at March 31, 2021
+Accumulated depreciation
+(774.5)
+(8.3)
+(782.8)
+323.6
+446.5
+1,959.4
+261.8
+218.8
+90.7
+699.7 22,712.5
+4,008.9
+71.3
+54.5
+Disposals
+(1.6)
+(148.3)
+(1.8)
+(83.8)
+Reclassified to Right-of-use
+(929.6)
+182.6 4,697.9
+(11.8) (247.3)
+(929.6)
+assets
+As at March 31, 2020
+1,147.6
+Additions
+229.4
+15,027.2
+435.6
+16.9 49,909.3
+1,070.7
+380.5
+0.1
+Additions
+958.0 65,210.3
+3,923.7
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+NOTE: 3 (a) PROPERTY, PLANT AND EQUIPMENT
+Financial Statements
+Standalone Accounts
+in Million
+Freehold Leasehold
+land
+land
+Buildings
+Buildings
+- leased
+430.8
+Plant and
+equipment
+Vehicles
+Office
+equipment
+Total
+At cost or deemed cost
+As at March 31, 2019
+1,147.5
+929.6 14,648.3
+16.9 46,048.7 1,001.2
+460.1
+Furniture
+and
+fixtures
+1,128.8 68,731.3
+4,306.1
+38.0
+263.2
+541.5 18,118.2
+4,000.3
+92.8
+76.4
+(94.8)
+(1.2)
+(60.9)
+Reclassified to Right-of-use
+516.0
+(31.6)
+assets
+As at March 31, 2020
+Depreciation expense
+Disposals
+As at March 31, 2021
+2,419.5
+511.9
+(7.0)
+2,924.4
+2.0 18,705.0
+607.6
+278.7
+168.2 4,793.0
+(10.0) (167.1)
+(31.6)
+4,118.2
+(157.0)
+2.0 14,799.5
+Disposals
+65.3
+378.4 5,452.8
+Disposals
+(69.6)
+(209.0)
+(8.2)
+(59.0)
+(9.8) (358.1)
+As at March 31, 2021
+1,964.4
+455.3
+(0.2)
+1,374.5
+16.9 54,006.4
+1,100.5
+437.1
+1,497.4 73,826.0
+Accumulated depreciation
+and impairment
+As at March 31, 2019
+31.6
+Depreciation expense
+15,393.2
+Shares of 10 each fully paid
+(14.5)
+(16.6)
+Sun Pharmaceutical (Bangladesh) Limited
+Ordinary Shares of 100 Takas each fully paid
+434,469
+36.5
+434,469
+36.5
+Share application money
+31.6
+31.6
+Sun Pharmaceutical Peru S.A.C.
+Ordinary Shares of Soles 10 each fully paid
+149
+0.0
+149
+0.0
+[*21,734 (March 31, 2020: *21,734)]
+SPIL DE Mexico S.A. DE CV
+Nominative and free Shares of 500 Mexican
+Pesos each fully paid
+100
+3.3
+750
+3.3
+750
+As at March 31, 2021
+Quantity
+* in Million
+As at March 31, 2020
+Quantity
+* in Million
+Equity instruments
+Unquoted (At cost less impairment in value of
+investments, if any)
+Sun Pharmaceutical Industries, Inc.
+Common shares of no par value
+8,387,666
+0.2
+304.2
+304.2
+Sun Farmaceutica do Brasil Ltda
+Quota of Capital Stock of Real 1 each fully paid
+4,019
+18.3
+4,019
+18.3
+Sun Pharma De Mexico, S.A. DE C.V.
+Common Shares of no Face Value
+8,387,666
+100
+0.2
+OOO "Sun Pharmaceutical Industries" Limited
+Shares of 10 each fully paid
+1.5
+40,050,000
+10,000
+0.1
+10,000
+0.1
+1.5
+Foundation for Disease Elimination and Control of
+India
+Faststone Mercantile Company Private Limited
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+131
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+Annual Report 2020-21
+NOTE : 5 INVESTMENTS IN THE NATURE OF EQUITY IN SUBSIDIARIES (NON-CURRENT)
+40,050,000
+Sun Pharma Laboratories Limited
+Par value rouble stock fully paid
+1
+8.8
+1
+8.8
+5,250,000 Rouble (March 31, 2020: 5,250,000
+Rouble)
+Green Eco Development Centre Limited
+Shares of 10 each fully paid
+700,000
+Shares of 10 each fully paid
+7.0
+7.0
+Sun Pharma De Venezuela, C.A.
+Shares of Bolivars (Bs.F.) 100 each, Bolivars (Bs.F.)
+1,000
+0.5
+1,000
+0.5
+50 per
+share paid
+700,000
+(2.1)
+(iii) The recoverable amount of Goodwill have been determined based on value in use calculations which uses cash flow
+projections covering generally a period of five years which are based on key assumptions such as margins, expected
+growth rates based on past experience and Management's expectations/ extrapolation of normal increase/ steady
+terminal growth rate and appropriate discount rates that reflects current market assessments of time value of money.
+The management believes that any reasonable possible change in key assumptions on which recoverable amount is
+based is not expected to cause the aggregate carrying amount to exceed the aggregate recoverable amount of the
+cash generating unit.
+(i) The aggregate amortisation has been included under depreciation and amortisation expense in the Statement of
+Profit and Loss.
+9,403.1
+433.7
+749.2
+1,182.9
+(17.8)
+(102.9)
+(120.7)
+As at March 31, 2020
+2,169.5
+7,087.8
+1,208.0
+10,465.3
+Additions
+1,037.1
+175.2
+1,212.3
+Disposals
+(471.1)
+(471.1)
+1,208.0
+6,441.5
+1,753.6
+Disposals
+10.8
+215.8
+141.8
+368.4
+1,083.6
+312.8
+195.9
+1,804.8
+3,084.3
+230.7
+As at March 31, 2021
+1,817.6
+* in Million
+Computer
+Software
+Product
+Goodwill
+Total
+related intangibles
+At cost or deemed cost
+As at March 31, 2019
+Additions
+2,361.1
+2,735.5
+7,263.0
+1,208.0
+As at March 31, 2021
+1,100.1
+6,402.6
+7,502.7
+Net book value
+As at March 31, 2020
+1,013.3
+963.0
+1,208.0
+(464.3)
+3,184.3
+1,635.4
+860.4
+1,208.0
+3,703.8
+130
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Standalone Accounts
+Footnotes
+As at March 31, 2021
+(ii) Refer Note 55 (1)
+(464.3)
+686.0
+11,206.5
+Accumulated amortisation and impairment
+As at March 31, 2019
+758.0
+5,953.0
+6,711.0
+Amortisation expense
+414.5
+241.9
+Disposals
+Disposals
+(16.3)
+(70.1)
+1,156.2
+6,124.8
+656.4
+(86.4)
+7,281.0
+408.2
+277.8
+As at March 31, 2020
+Amortisation expense
+3,950.7
+Fund-Direct Plan-Growth
+NOTE: 14 TRADE RECEIVABLES
+Equity shares of *1 each
+Reconciliation of the number of equity shares and
+amount outstanding at the beginning and at the end of
+reporting period
+Opening balance
+Closing balance
+Equity shares held by each shareholder holding more
+than 5 percent equity shares in the Company are as
+follows:
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+1,645.1
+3,440.5
+1,127.4
+411.9
+690.7
+1,195.9
+393.9
+340.8
+(393.9)
+(340.8)
+690.7
+Issued, subscribed and fully paid up
+Cumulative preference shares of *100 each
+Equity shares of 1 each
+Authorised
+269.3
+7,571.1
+7,584.2
+* The Company is carrying an allowance of *500.0 Million (March 31, 2020 : 500 Million) against Other receivables based on assessment
+regarding recoverability of the same.
+Annual Report 2020-21
+137
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+1,195.9
+NOTE: 19 OTHER ASSETS (CURRENT)
+Prepaid expenses
+Advances for supply of goods and services
+Considered good
+Considered doubtful
+Less: Allowance for doubtful
+Balances with government authorities
+Other assets #
+* includes balances of goods and service tax
+# includes government grant from Biotechnology Industry Research Assistance Council (BIRAC).
+NOTE : 20 EQUITY SHARE CAPITAL
+Export incentives receivable
+4,116.6
+3,675.5
+130.8
+2,399,334,970
+2,399,334,970
+2,399.3
+2,399.3
+As at March 31, 2021
+Number of shares
+% of holding
+As at March 31, 2020
+Number of shares
+% of holding
+Shanghvi Finance Private Limited
+Dilip Shantilal Shanghvi
+967,051,732
+230,285,690
+40.3
+2,399.3
+2,399.3
+967,051,732
+9.6
+230,285,690
+9.6
+Life Insurance Corporation Of India and its various funds
+162,207,571
+6.8
+152,884,946
+6.4
+138
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+40.3
+696.2
+2,399,334,970
+2,399,334,970
+Number of shares
+100.8
+7,710.6
+8,824.6
+As at March 31, 2021
+As at March 31, 2020
+Number of shares
+Number of shares
+* in Million
+5,990,000,000
+100,000
+5,990.0
+10.0
+6,000.0
+* in Million
+5,990,000,000
+5,990.0
+10.0
+6,000.0
+2,399,334,970
+2,399,334,970
+2,399.3
+2,399.3
+2,399,334,970
+2,399,334,970
+2,399.3
+2,399.3
+As at March 31, 2021
+Number of shares
+As at March 31, 2020
+* in Million
+100,000
+Derivatives designated as hedges
+* in Million
+71.1
+2,197.0
+8.0
+2,205.0
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+NOTE : 16 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 15 ABOVE
+Financial Statements
+Standalone Accounts
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+Earmarked balances with banks
+Unpaid dividend accounts
+2,216.1
+7.3
+2,223.4
+Escrow account - Buy back [Refer Note 55 (8)]
+76.3
+4,250.0
+Balances held as margin money or security against guarantees and other commitments
+12.5
+99.2
+16.5
+4,342.8
+NOTE : 17 LOANS (CURRENT)
+*
+Loans to employees / others
+Secured, considered good
+86.7
+Unsecured, considered good
+As at
+March 31, 2020
+As at
+March 31, 2021
+82.7
+Unsecured
+Considered good
+Credit impaired
+Less: Allowance for doubtful debts (expected credit loss allowance)
+NOTE: 15 CASH AND CASH EQUIVALENTS
+Balances with banks
+In current accounts
+Cash on hand
+136
+in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+63,706.2
+61,681.3
+1,251.5
+1,300.1
+64,957.7
+62,981.4
+(1,251.5)
+(1,300.1)
+63,706.2
+* in Million
+Credit impaired
+61,681.3
+Loans to related parties (Refer Note 50 and 51) *
+Unsecured, considered good
+Other receivables
+Less Allowance for doubtful *
+Other receivables - from related parties (Refer Note 50)
+Refund due from government authorities
+Unbilled revenue (Refer Note 54)
+20.0
+2.1
+1.2
+47.1
+1,646.9
+Security deposits (unsecured, considered good)
+1,700.3
+(500.0)
+1,146.9
+1,200.3
+2,601.6
+2,664.9
+2,651.7
+3,315.4
+336.5
+Less: Allowance for doubtful loans (expected credit loss allowance)
+Derivatives not designated as hedges
+(500.0)
+Insurance claim receivables
+48.3
+March 31, 2020
+* Loans have been granted for the purpose of their business.
+NOTE: 18 OTHER FINANCIAL ASSETS (CURRENT)
+Interest accrued, considered good
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+0.8
+71.2
+81.1
+15.3
+4.5
+0.7
+(15.3)
+March 31, 2021
+As at
+* in Million
+4,404.0
+4,485.9
+7,313.8
+7,385.7
+As at
+81.9
+71.9
+(4.5)
+2,505.3
+2,297.9
+Printing and stationery
+204.4
+182.0
+Repairs and maintenance
+Travelling and conveyance
+757.2
+1,645.5
+Freight outward and handling charges
+2,929.2
+2,396.2
+Communication
+152.6
+309.2
+Provision / write off / (reversal) for doubtful trade receivables / advances
+43.2
+535.4
+Professional, legal and consultancy
+6,089.9
+5,650.3
+Donations
+33.6
+99.7
+Year ended
+March 31, 2020
+Loss on sale / write off of property, plant and equipment and intangible assets, net
+(Gain) loss on derecognition of Right-of-use assets
+262.1
+* in Million
+* in Million
+for the year ended March 31, 2021
+2,087.6
+51.0
+209.1
+(400.1)
+2,569.8
+294.8
+1,697.7
+4,080.1
+Year ended
+March 31, 2021
+Year ended
+March 31, 2020
+3,966.4
+3,746.8
+2,038.3
+2,555.8
+3,841.3
+3,947.4
+37.6
+58.5
+1,621.8
+2,177.9
+739.8
+4,571.7
+715.2
+5,557.7
+466.0
+351.3
+143
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+Year ended
+March 31, 2021
+(103.6)
+Miscellaneous expenses
+For audit
+2,181.4
+281.0
+1.1
+316.4
+2.0
+540.7
+1,035.7
+52.6
+44.5
+423.4
+359.6
+8.3
+12.3
+30.5
+89.2
+22.5
+36.8
+Professional, legal and consultancy
+2,700.7
+2,741.0
+374.7
+10,611.9
+152.2
+10,295.3
+Less:
+Receipts from research activities
+Miscellaneous income
+607.8
+13.8
+* in Million
+Year ended
+March 31, 2020
+23.2
+Payments to auditor (net of input credit, wherever applicable)
+Year ended
+March 31, 2020
+3,145.2
+155.8
+Consumption of materials, stores and spare parts
+For other services
+Reimbursement of expenses
+Impairment of property, plant and equipment, goodwill and other intangible assets
+Miscellaneous expenses
+27.9
+26.1
+12.5
+10.1
+0.8
+3.4
+23.1
+2,421.7
+2,780.4
+32,599.8
+35,140.8
+NOTE: 37 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE STATEMENT OF PROFIT AND
+LOSS
+in Million
+Staff welfare expenses
+Power and fuel
+Rent
+Rates and taxes
+Insurance
+Repairs and maintenance
+Printing and stationery
+Travelling and conveyance
+Communication
+Salaries, wages and bonus
+Contribution to provident and other funds
+Year ended
+March 31, 2021
+3,392.3
+240.9
+11.7
+2,531.5
+2,760.8
+Year ended
+March 31, 2020
+17,027.7
+Investments in debt instruments at fair value through other comprehensive income
+0.5
+22.2
+Other financial assets carried at amortised cost
+49.3
+205.3
+Others (includes interest on income tax refund)
+118.5
+160.2
+592.3
+700.6
+Dividend income on investments
+301.2
+Subsidiary
+9,258.3
+Net gain/(loss) arising on financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through profit or loss
+(9.7)
+7.2
+107.3
+121.4
+Net gain/(loss) on sale of financial assets measured at fair value through other comprehensive
+income
+0.4
+0.4
+Gain on sale of investment in subsidiary
+Sundry balances written back, net
+75.6
+383.4
+423.0
+Loans at amortised cost
+11.7
+75.0
+4.1
+4,768.2
+6,437.2
+68.4
+4.1
+As at
+March 31, 2021
+884.6
+11,152.1
+* in Million
+As at
+March 31, 2020
+793.8
+10,185.6
+12,036.7
+10,979.4
+Revenue from contracts with customers (Refer Note 54)
+Other operating revenues
+Year ended
+March 31, 2021
+125,709.3
+2,322.8
+128,032.1
+* in Million
+9,990.3
+119,067.4
+6,251.9
+125,319.3
+NOTE: 31 OTHER INCOME
+* in Million
+Year ended
+March 31, 2020
+Interest income on :
+Bank deposits at amortised cost
+1.0
+Reversal of provision in respect of losses of a subsidiary
+2,244.3
+17.3
+2,502.9
+Insurance claims
+72.1
+Inventories at the beginning of the year
+Inventories at the end of the year
+NOTE: 34 EMPLOYEE BENEFITS EXPENSE
+Salaries, wages and bonus
+Contribution to provident and other funds
+Staff welfare expenses
+* includes gratuity expense of *316.2 Million (March 31, 2020: *244.3 Million)
+NOTE: 35 FINANCE COSTS
+Interest expense for financial liabilities carried at amortised cost
+Interest expense others (includes interest on income tax)
+Exchange differences regarded as an adjustment to borrowing costs
+NOTE: 36 OTHER EXPENSES
+Consumption of materials, stores and spare parts
+Conversion and other manufacturing charges
+Power and fuel
+Rent
+Rates and taxes
+Insurance
+Selling, promotion and distribution
+Commission on sales
+Annual Report 2020-21
+Year ended
+March 31, 2021
+14,521.5
+(16,669.9)
+(2,148.4)
+* in Million
+Year ended
+March 31, 2020
+15,907.5
+(14,521.5)
+1,386.0
+Year ended
+March 31, 2021
+16,511.6
+1,131.1
+341.8
+17,984.5
+* in Million
+Year ended
+March 31, 2020
+15,660.5
+1,019.5
+347.7
+NOTE : 33 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+Year ended
+March 31, 2021
+32,017.1
+(11,532.3)
+145.1
+Lease rental and hire charges
+39.7
+41.9
+Miscellaneous income
+241.1
+69.8
+1,502.2
+15,109.2
+142
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+NOTE: 32 COST OF MATERIALS CONSUMED
+Raw materials and packing materials
+Financial Statements
+Standalone Accounts
+* in Million
+Year ended
+March 31, 2021
+Year ended
+March 31, 2020
+Inventories at the beginning of the year
+Purchases during the year
+Inventories at the end of the year
+11,532.3
+11,579.3
+41,160.2
+31,970.1
+(14,601.4)
+38,091.1
+384.7
+13.1
+9,897.5
+Uncalled liability on partly paid investments
+Notes to the Standalone Financial Statements
+20.0
+2,651.7
+147
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+Other receivables
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Financial liabilities
+Borrowings
+99.2
+Interest accrued
+Payables to employee
+Unpaid dividends
+Security deposits
+Payables on purchase of property, plant and equipment
+Product settlement, claims, recall charges and trade commitments
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Financial assets
+Investments
+Equity instruments / bonds - quoted
+Equity instruments / mutual fund - unquoted
+Government securities - unquoted (*10,000)
+Trade payables
+2,223.4
+63,706.2
+642.0
+Financial Statements
+Standalone Accounts
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+4,812.1
+4,239.0
+0.5
+513.3
+0.5
+536.7
+1,233.8
+1,667.3
+* in Million
+Year ended
+March 31, 2021
+Year ended
+March 31, 2020
+9,897.5
+9,990.3
+383.8
+10,374.1
+305.4
+10,202.9
+As at March 31, 2021
+Fair value
+through other
+comprehensive
+income
+* in Million
+Amortised cost
+315.5
+90.2
+8,021.0
+78.6
+0.9
+489.7
+Loans to related parties
+Loans to employees / others
+Deposits
+Security deposits
+22.1
+22.1
+14.7
+114,929.4
+Fair value through
+profit or loss
+As at March 31, 2020
+Fair value
+through other
+comprehensive
+income
+108.6
+3,927.5
+* in Million
+Amortised cost
+0.0
+4,404.0
+89.3
+0.9
+462.6
+434.1
+61,681.3
+2,205.0
+4,342.8
+2.1
+1.2
+3,315.4
+3,865.2
+269.3
+82.7
+4,010.2
+377.9
+80,803.9
+14.7
+Fair value through
+profit or loss
+18,748.2
+85.1
+Unbilled revenue
+Trade receivables
+Cash and cash equivalents
+Bank balances other than cash and cash equivalents
+Interest accrued
+Insurance claim receivables
+Refund due from government authorities
+Other receivables
+Derivatives designated as hedges
+Derivatives not designated as hedges
+148
+* in Million
+As at March 31, 2021
+Fair value through
+profit or loss
+Fair value
+through other
+comprehensive
+income
+Amortised cost
+3,748.5
+696.2
+71.1
+386.6
+786.4
+81,681.2
+66,888.2
+13.6
+25,926.1
+2,134.0
+83.5
+1,050.7
+Annual Report 2020-21
+Refund due from government authorities
+Interest accrued
+Income tax expense recognised in statement of profit and loss
+131.7
+418.6
+# The tax rate used for reconciliation above is the corporate tax rate of 34.944% (March 31, 2020: 34.944%) at which the Company is liable to pay
+tax on taxable income under the Indian Tax Law.
+NOTE: 39 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+Contingent liabilities
+a
+Claims against the Company not acknowledged as debts
+556.5
+595.3
+b Liabilities disputed - appeals filed with respect to :
+Income tax on account of disallowances / additions (Company appeals) *
+24,277.6
+26,569.2
+Sales tax on account of rebate / classification
+148.4
+115.3
+Excise duty / service tax on account of valuation / cenvat credit
+391.4
+177.3
+ESIC contribution on account of applicability
+130.5
+130.5
+(1,216.7)
+C
+(3,095.1)
+(15.5)
+(5,612.2)
+for the year ended March 31, 2021
+NOTE: 38 TAX RECONCILIATION
+Reconciliation of tax expense
+Financial Statements
+Standalone Accounts
+* in Million
+Year ended
+March 31, 2021
+Year ended
+March 31, 2020
+Profit before tax
+21,528.7
+32,530.0
+Income tax rate (%) applicable to the Company #
+34.944%
+34.944%
+Income tax calculated at income tax rate
+7,523.0
+11,367.3
+Effect of income that is exempt from tax
+(2,323.7)
+Effect of expenses that are not deductible
+35.3
+Effect of incremental deduction on account of research and development and other
+allowances
+126.6
+(1,907.2)
+Withholding tax in respect of income earned outside India
+99.9
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+Effect of reversal of MAT credit entitlement
+(4,803.2)
+371.8
+Others
+144
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended
+benefit, enjoyed by the Company
+3,488.2
+ii
+Note:
+Future cash outflows in respect of the above matters are determinable only on receipt of
+judgements / decisions pending at various forums / authorities.
+* Income tax matters where department has preferred an appeal against favourable order
+received by the Company amounted to $21,808.4 Million (March 31, 2020: *20,242.6
+Million). These matters are sub-judice in various forums and pertains to various financial
+years.
+Commitments
+a Estimated amount of contracts remaining to be executed on capital account [net of
+advances]
+b
+4,361.0
+C
+Letters of credit for imports
+* The Company is committed to pay milestone payments and royalty on certain contracts,
+however, obligation to pay is contingent upon fulfilment of contractual obligation by
+parties to the contract.
+iii Guarantees given by the bankers on behalf of the Company
+NOTE: 40 RESEARCH AND DEVELOPMENT EXPENDITURE
+Revenue, net (excluding depreciation) (Refer Note 37)
+Capital
+NOTE: 41 CATEGORIES OF FINANCIAL INSTRUMENTS
+Financial assets
+Investments
+Equity instruments
+Equity instruments / mutual fund - unquoted
+Loans to related parties
+Loans to employees / others
+Deposits
+Security deposits
+Unbilled revenue
+Trade receivables
+Cash and cash equivalents
+Bank balances other than cash and cash equivalents
+for the year ended March 31, 2021
+3,488.2
+Notes to the Standalone Financial Statements
+As at
+d
+Fine imposed for anti-competitive settlement agreement by European Commission [Refer
+Note 55(2)]
+856.1
+e
+Octroi demand on account of rate difference
+171.0
+f Other matters - state electricity board, Punjab Land Preservation Act related matters etc.
+Note: includes, interest till the date of demand, wherever applicable
+90.2
+89.8
+Annual Report 2020-21
+145
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+g Legal proceedings:
+The Company and/or its subsidiaries are involved in various legal proceedings including
+product liability, contracts, employment claims, antitrust and other regulatory matters
+relating to conduct of its business. Some of the key matters are discussed below. Most of
+the legal proceedings involve complex issues, which are specific to the case and do not
+have precedents, and, hence, for a majority of these claims, it is not possible to make a
+reasonable estimate of the expected financial effect, if any, that will result from ultimate
+resolution of the proceedings. This is due to a number of factors, including: the stage
+of the proceedings and the overall length and the discovery process; the entitlement of
+the parties to an action to appeal a decision; the extent of the claims, including the size
+of any potential class, particularly when damages are not specified or are indeterminate;
+the possible need for further legal proceedings to establish the appropriate amount of
+damages, if any; the settlement posture of the other parties to the litigation, and any
+other factors that may have a material effect on the litigation. The Company makes
+its assessment of likely outcome based on the views of internal legal counsel and in
+consultation with external legal counsel representing the Company. The Company also
+believes that disclosure of the amount sought by plaintiffs would not be meaningful
+because historical evidence indicates that the amounts settled (if any) are significantly
+different than those claimed by plaintiffs. Some of the legal claims against the Company, if
+decided against the Company or settled by the Company, may result in significant impact
+on its results of operations.
+Antitrust -
+- Lipitor:
+The Company and its certain subsidiaries are defendants in a number of putative class
+action lawsuits and individual actions brought by purchasers and payors in the U.S.
+alleging that the Company and its certain subsidiaries violated antitrust laws in connection
+with a 2008 patent settlement agreement with Pfizer concerning Atorvastatin. The
+cases have been transferred to the U.S. District Court for the District of New Jersey for
+coordinated proceedings. Discovery commenced in January 2020, but was stayed and
+remains stayed at present.
+Antitrust - In re Ranbaxy Generic Drug Application Antitrust Litigation:
+The Company and its certain subsidiaries are defendants in a number of class action
+lawsuits and individual actions brought by purchasers and payors in the U.S. alleging that
+the Company and its certain subsidiaries violated antitrust laws and the RICO Act with
+respect to its ANDAs for Valganciclovir, Valsartan and Esomeprazole. The cases have been
+transferred to the U.S. District Court for the District of Massachusetts for coordinated
+proceedings. This lawsuit is currently scheduled for trial in January 2022.
+Fine imposed for anti-competitive settlement agreement by European Commission:
+On March 25, 2021, the Court of Justice of the European Union ("CJEU") issued a final
+judgment and upheld the European Commission's ("EC") decision dated June 19, 2013
+that a settlement agreement between Ranbaxy (U.K.) Limited and Ranbaxy Laboratories
+Limited (together "Ranbaxy") with Lundbeck was anti-competitive. Ranbaxy had made a
+provisional payment of the fine of Euro 10.3 Million on September 20, 2013. Since there
+are no further rights of appeal, this amount of *895.6 Million (inclusive of legal charges)
+was provided in the standalone financial statements for the year ended March 31, 2021.
+The Company may now be subject to "follow-on" claims in national courts of some
+countries. However, the Company has not yet been served with a claim detailing the
+alleged causation and quantum of any purported damages. Accordingly, the Company is
+currently unable to estimate the potential liability which may arise on account of follow-
+on claims. The Company also believes, based on its internal assessment and that of its
+independent legal counsel, that it has favourable legal arguments in terms of defending
+any potential damages claim.
+146
+As at
+March 31, 2021
+* in Million
+March 31, 2020
+2,071.9
+Year ended
+March 31, 2021
+2,617.2
+Capital redemption reserve - The Company has recognised capital redemption reserve on buyback of equity shares from
+its retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought
+back.
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+CARE
+Sun Pharmaceutical Industries Limited
+139
+Annual Report 2020-21
+Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.
+Securities premium - The amount received in excess of face value of the equity shares is recognised in securities premium.
+In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal
+value of share is accounted as securities premium. It is utilised in accordance with the provisions of the Companies Act,
+2013.
+Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if
+any, is treated as capital reserve.
+Nature and purpose of each reserve
+Refer statement of changes in equity for detailed movement in other equity balance
+241,562.9
+248,002.3
+1,230.3
+General reserve: The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies
+Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
+(256.3)
+Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investment in
+equity instrument in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of
+equity instrument.
+Foreign currency translation reserve - Exchange differences relating to the translation of the results and the net assets
+of the Company's foreign operations from their functional currencies to the Company's presentation currency (i.e *) are
+recognised directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange
+difference in the foreign currency translation reserve are reclassified to statement of profit or loss account on the disposal
+of the foreign operation.
+Loans from related party (Unsecured) (Refer Note 49 and 50)
+10,463.9
+2,041.2
+2,028.4
+Lease liabilities (Refer Note 48)
+1,825.8
+Unsecured
+Term loans from banks (Refer Note 49)
+61.8
+54.1
+Term loan from department of biotechnology (Refer Note 49)
+Secured
+As at
+March 31, 2020
+* in Million
+As at
+March 31, 2021
+NOTE : 22 BORROWINGS (NON-CURRENT)
+Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gains
+or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges.
+The cumulative gain or loss recognised and accumulated under the cash flow hedge reserve will be reclassified to profit
+or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial
+hedged item.
+Debt instrument through OCI - This represents the cumulative gain and loss arising on fair valuation of debt instruments
+measured through other comprehensive income. This will be reclassified to statement of profit or loss on derecognition of
+debt instrument.
+44,427.3
+1,485.9
+Effective portion of cash flow hedges
+Equity instrument through OCI
+B) Items of other comprehensive income (OCI)
+Retained earnings
+General reserve
+Capital redemption reserve
+Amalgamation reserve
+Securities premium
+Capital reserve
+A) Surplus
+NOTE : 21 OTHER EQUITY
+(iii) Rights, Preference and Restrictions attached to equity shares: The equity shares of the Company, having par value of
+₹1 per share, rank pari passu in all respects including voting rights and entitlement to dividend.
+(ii) 7,500,000 (upto March 31, 2020: 7,500,000), equity shares of 1 each have been bought back during the period
+of five years immediately preceding the date at which the Balance Sheet is prepared. The shares bought back were
+cancelled.
+334,956,764 (upto March 31, 2020: 334,956,764) equity shares of 1 each have been allotted, pursuant to scheme of
+amalgamation, without payment being received in cash during the period of five years immediately preceding the date
+at which the Balance Sheet is prepared.
+(i)
+Financial Statements
+Standalone Accounts
+Debt instrument through OCI
+1,485.9
+443.4
+1,935.9
+Foreign currency translation reserve
+* in Million
+As at
+March 31, 2020
+(0.3)
+1.0
+2,003.7
+240,332.6
+246,066.4
+140,052.7
+145,786.5
+34,779.3
+34,779.3
+7.5
+7.5
+43.8
+43.8
+53,575.2
+11,874.1
+53,575.2
+11,874.1
+As at
+March 31, 2021
+48,335.6
+12,566.9
+NOTE : 23 OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+March 31, 2021
+As at
+13,919.6
+12,150.2
+4,289.8
+6,208.4
+1,769.4
+As at
+March 31, 2020
+* in Million
+1,918.6
+March 31, 2021
+As at
+1,455.5
+1,607.2
+1,455.5
+1,607.2
+* in Million
+March 31, 2020
+As at
+March 31, 2020
+22,779.9
+77.2
+83.5
+46.6
+13.6
+170.6
+188.1
+6,438.6
+1,844.7
+As at
+March 31, 2020
+As at
+March 31, 2021
+* in Million
+44,882.7
+9,911.0
+14,006.4
+16,519.8
+12,191.8
+2,513.4
+As at
+As at
+March 31, 2021
+* in Million
+Loans repayable on demand
+NOTE : 26 BORROWINGS (CURRENT)
+Others (Refer Note 52)
+Employee benefits
+NOTE : 25 PROVISIONS (NON-CURRENT)
+Deferred revenue (Refer Note 54)
+NOTE : 24 OTHER LIABILITIES (NON-CURRENT)
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+161.7
+161.7
+As at
+March 31, 2020
+in Million
+As at
+March 31, 2021
+140
+Derivatives not designated as hedge
+From Banks
+Unsecured
+Loans from related party (Refer Note 50)
+Loans repayable on demand (Unsecured)
+Financial Statements
+Standalone Accounts
+Annual Report 2020-21
+Derivatives designated as hedge
+Derivatives not designated as hedge
+Payables to employee
+Product settlement, claims, recall charges and trade commitments
+Payables on purchase of property, plant and equipment
+for the year ended March 31, 2021
+Security deposits
+Interest accrued
+Current maturities of lease liabilities (Refer Note 48)
+Current maturities of long-term debt (Refer Note 49)
+NOTE : 27 OTHER FINANCIAL LIABILITIES (CURRENT)
+paper (Unsecured)
+Commercial
+Other loans
+Unpaid dividends
+Notes to the Standalone Financial Statements
+6.6
+Advance from customers
+141
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+NOTE : 28 OTHER LIABILITIES (CURRENT)
+Statutory remittances
+Deferred revenue (Refer Note 54)
+28,445.4
+Others
+Employee benefits
+Others (Refer Note 52)
+NOTE: 30 REVENUE FROM OPERATIONS
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+NOTE : 29 PROVISIONS (CURRENT)
+663.3
+24,184.7
+13.0
+85.1
+14.7
+1,050.7
+357.6
+18,748.2
+84.4
+2,134.0
+2,056.2
+22.1
+18,537.9
+USD
+Sell
+USD
+Forward contracts
+GBP
+USD
+$ 16.5
+$ 6.8
+$6.6
+$ 24.1
+EUR
+Forward contracts
+Sell
+$7.2
+18,537.9
+USD
+Sell
+INR
+Sell
+$96.2
+Interest rate swaps (floating to fixed)
+Currency swaps
+USD
+$ 50.0
+JPY
+Buy
+USD
+$ 50.0
+Currency swaps
+AUD
+As at
+March 31, 2021
+Derivatives not designated as hedges
+5.5
+767.3
+400.2
+696.2
+71.1
+The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable
+forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow
+hedges is recorded as in other comprehensive income, and re-classified in the income statement as revenue in the
+period corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow
+hedges is immediately recorded in the statement of profit and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a net
+gain of $1,075.5 Million for the year ended March 31, 2021 and net loss of 929.2 Million for the year ended March
+31, 2020 in other comprehensive income. The Company also recorded hedges as a component of revenue, gain of
+*121.8 Million for the year ended March 31, 2021 and gain of 462.4 Million for the year ended March 31, 2020 on
+occurrence of forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and
+liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in the statement of profit
+and loss. The changes in fair value of the forward contracts and option contracts, as well as the foreign exchange
+gains and losses relating to the monetary items, are recognised in the statement of profit and loss.
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative
+contracts -
+Currency
+Buy/Sell
+Cross
+Currency
+Forward contracts
+154
+Derivatives designated as hedges
+Forward contracts
+ZAR
+Sell
+INR
+Forward contracts
+Liquidity risk
+USD
+Sell
+INR
+ZAR 300.0
+$430.6
+ZAR 450.0
+$227.5
+Amount in Million
+As at
+March 31, 2020
+Notes to the Standalone Financial Statements
+Nominal value per share (in)
+Financial Statements
+Standalone Accounts
+155
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+* in Million
+Contribution to Provident Fund and Family Pension Fund
+Contribution to Superannuation Fund
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+Defined benefit plan
+a) Gratuity
+b)
+Year ended
+Year ended
+March 31, 2021
+310.0
+Other financial liabilities
+March 31, 2020
+708.1
+649.7
+65.3
+63.2
+27.4
+48.2
+Annual Report 2020-21
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC)
+and other Funds which covers all regular employees. While both the employees and the Company make predetermined
+contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund and other Statutory Funds are
+made only by the Company. The contributions are normally based on a certain percentage of the employee's salary.
+Amount recognised as expense in respect of these defined contribution plans, aggregate to ₹801.6 Million (March 31, 2020
+:762.2 Million).
+13.38
+8.92
+Interest rate risk
+The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in interest
+rates. The Company's Treasury Department monitors the interest rate movement and manages the interest rate risk
+by evaluating interest rate swaps etc. based on the market / risk perception.
+As at March 31, 2021, the Company has loan facilities which are either on fixed interest rates or are managed by
+interest rate swaps, hence the Company is not exposed to interest rate risk. For the year ended March 31, 2020,
+every 50 basis point decrease in the floating interest rate component applicable on its closing balance of loans and
+borrowings would have increase the Company's profit by approximately *198.4 Million. A 50 basis point increase in
+floating interest rate would have led to an equal but opposite effect.
+Commodity rate risk
+Exposure to market risk with respect to commodity prices primarily arises from the Company's purchases and sales of
+active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients.
+These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the
+Company's raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used
+in the Company's active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms
+the largest portion of the Company's cost of revenues. Commodity price risk exposure is evaluated and managed
+through operating procedures and sourcing policies. As of March 31, 2021, the Company had not entered into any
+material derivative contracts to hedge exposure to fluctuations in commodity prices.
+NOTE: 45 DISCLOSURES UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
+The information regarding Micro and Small Enterprises has been determined to the extent such parties have been
+identified on the basis of information available with the Company. This has been relied upon by the auditors.
+Principal amount remaining unpaid to any supplier as at the end of the accounting year
+As at
+March 31, 2021
+852.0
+* in Million
+As at
+March 31, 2020
+461.8
+There are no amounts of interest paid / due / payable during the year / previous year / succeeding year. Also, there is no
+amount of interest accrued and remaining unpaid at the end of current accounting year / previous accounting year.
+NOTE: 46 EARNINGS PER SHARE
+for the year ended March 31, 2021
+Profit for the year (in Million) - used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic earnings per share
+Basic earnings per share (in )
+Diluted earnings per share (in )
+NOTE: 47 EMPLOYEE BENEFIT PLANS
+Defined contribution plan
+Year ended
+March 31, 2021
+Year ended
+March 31, 2020
+21,397.0
+2,399,334,970 2,399,334,970
+32,111.4
+1
+8.92
+1
+13.38
+22.1
+0.8
+14.7
+* in Million
+The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
+Company's risk management assessment and policies and processes are established to identify and analyse the risks faced
+by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk
+assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the
+Company's activities.
+Credit risk
+Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
+its contractual obligations, and arises principally from the Company's receivables from customers, loans and investments.
+Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness
+of counterparty to which the Company grants credit terms in the normal course of business.
+Investments
+The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that
+have a good credit rating. The Company does not expect any significant losses from non-performance by these counter-
+parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
+Trade receivables
+NOTE: 44 FINANCIAL RISK MANAGEMENT
+The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company
+uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and
+internal risk factors and historical data of credit losses from various customers.
+less than 180 days
+180 - 365 days
+beyond 365 days
+Total
+Annual Report 2020-21
+As at
+March 31, 2021
+Financial assets for which loss allowances is measured using the expected credit loss
+Trade receivables
+This proposed dividend is subject to the approval of shareholders in the ensuing
+annual general meeting and hence not recognised as liability.
+The Board of Directors at it's meeting held on May 27, 2021 have recommended
+payment of final dividend of $2 per share of face value of *1 each for the year ended
+March 31, 2021. The same amounts to ₹4,798.6 Million.
+Dividends not recognised at the end of the reporting period
+Financial Statements
+Standalone Accounts
+* in Million
+Year ended
+March 31, 2021
+Year ended
+March 31, 2020
+Dividend on equity shares
+Final dividend for the year ended March 31, 2020 of 1 (year ended March 31, 2019:
+*2.75) per fully paid share
+Dividend distribution tax on above
+2,399.3
+6,595.7
+1,355.8
+Interim dividend for the year ended March 31, 2021 of 5.50 (year ended March 31,
+2020 : 3) per fully paid share
+13,191.3
+7,193.9
+Dividend distribution tax on above
+573.1
+* in Million
+year
+As at
+March 31, 2020
+34,744.0
+1,251.5
+1,361.6
+24.4
+(85.9)
+Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
+Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its
+liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the
+Company's reputation.
+The Company has unutilised working capital lines from banks of *36,486.6 Million as on March 31, 2021 (March 31, 2020 :
+*48,498.0 Million).
+The table below provides details regarding the contractual maturities of significant financial liabilities :
+(185.3)
+Non derivative
+Trade payables
+Other financial liabilities
+Derivative
+Non derivative
+Borrowings
+Trade payables
+Borrowings
+1,300.1
+136.7
+March 31, 2020
+Year ended
+2,036.0
+16,620.2
+26,201.4
+64,957.7
+62,981.4
+151
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+Movement in the expected credit loss allowance on trade receivables
+Balance at the beginning of the year
+Addition
+Recoveries
+Balance at the end of the year
+Year ended
+March 31, 2021
+* in Million
+40,241.3
+8,096.2
+(ii) Dividend on equity shares paid during the
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+Financial liabilities
+Derivatives not designated as hedges
+174.7
+Derivatives designated as hedges
+663.3
+838.0
+3.8
+Annual Report 2020-21
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
+the measurement date.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
+either directly or indirectly.
+149
+352.0
+4,032.3
+269.3
+Level 1
+As at March 31, 2020
+Level 2
+Level 3
+the end of each reporting period
+Financial assets
+Investments in equity - quoted #
+81.6
+Investments in equity - unquoted
+3.8
+Investments in government securities
+27.0
+Mutual funds
+3,923.7
+Derivatives not designated as hedges
+Derivatives designated as hedges
+82.7
+Level 3 inputs are unobservable inputs for the asset or liability.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair
+value. The cost of unquoted investments approximates the fair value because there is wide range of possible fair value
+measurements and the costs represents estimate of fair value within that range.
+# These investments in equity instruments are not held for trading. Instead, they are held for medium or long-term
+strategic purpose. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity
+instruments at fair value through other comprehensive income as the management believes that this provides a more
+meaningful presentation for medium or long-term strategic investments, than reflecting changes in fair value immediately
+in profit or loss.
+There were no transfers between Level 1 and 2 in the periods.
+The Company monitors capital on the basis of the carrying amount of debt as presented on the face of the financial
+statements. The Company's objective for capital management is to maintain an optimum overall financial structure.
+(i) Debt equity ratio
+Debt (includes non-current, current borrowings, current maturities of long-term debt
+and current maturities of lease liabilities)
+Total equity, including reserves
+Net debt to total equity ratio
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2020
+66,888.2
+64,058.8
+250,401.6
+0.27
+243,962.2
+0.26
+150
+3.8
+36.8
+5.5
+1.7
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost
+approximates their fair value.
+Reconciliation of Level 3 fair value measurements
+Year ended
+March 31, 2021
+* in Million
+Year ended
+March 31, 2020
+Unlisted shares valued at fair value
+Balance at the beginning of the year
+Purchases
+Balance at the end of the year
+NOTE: 43 CAPITAL MANAGEMENT
+The Company's capital management objectives are:
+- to ensure the Company's ability to continue as a going concern; and
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+3.8
+3.7
+0.1
+357.6
+1.1
+Pension fund
+Indian Assured
+Lives Mortality Lives Mortality
+N.A.
+Indian Assured
+Lives Mortality
+N.A.
+(2012-14)
+(2012-14)
+(2012-14)
+N.A.
+Indian Assured
+Lives Mortality
+(2012-14)
+Discount rate
+Expected return on plan assets
+Expected rate of salary increase
+Interest rate guarantee
+Mortality
+Indian Assured
+Employee turnover
+Retirement Age (years)
+Assumptions:
+N.A.
+N.A. 9.38% - 10.00%
+9.00%
+Gratuity
+1,300.1
+(Unfunded)
+(Funded)
+(Unfunded)
+(Funded)
+6.45%
+6.25%
+6.50%
+6.50%
+N.A.
+6.25%
+N.A.
+6.50%
+N.A.
+Sensitivity analysis:
+Pension Fund
+The sensitivity analysis have been determined based on
+method that extrapolates the impact on defined benefit
+obligation as a reasonable change in key assumptions
+occurring at the end of the reporting period
+Delta effect of +1% change in discount rate
+Delta effect of -1% change in discount rate
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee
+turnover
+194.3
+174.6
+(178.0)
+(159.7)
+(26.6)
+(26.5)
+180.9
+29.2
+next
+1st year
+2nd year
+3rd
+93.6
+633.6
+29.1
+(162.0)
+(84.7)
+95.6
+(180.1)
+200.9
+Delta effect of -1% change in rate of employee
+turnover
+Maturity analysis of projected benefit obligation for
+N.A. 12.40% - 13.45%
+N.A.
+60
+N.A. 12.40% - 13.45%
+N.A.
+60
+* in Million
+As at March 31, 2021
+Pension Fund
+(Unfunded)
+As at March 31, 2020
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+(89.5)
+100.7
+Impact on defined benefit obligation
+Gratuity
+Pension Fund
+As at March 31, 2020
+1,087.6
+(42.2)
+62.0
+3,330.8
+58.2
+17.3
+22.6
+117.3
+Obligation as at the year end
+1,009.7
+Reconciliation of liability/(asset) recognised in the Balance sheet
+Present value of commitments (as per Actuarial Valuation)
+Fair value of plan assets
+Net (asset) / liability recognised in the financial statement
+Reconciliation of plan assets
+Plan assets as at the beginning of the year
+2,949.6
+5.4
+68.8
+- due to experience
+- due to change in financial assumptions
+663.3
+174.7
+174.7
+663.3
+106,511.4
+* in Million
+Level 1
+As at March 31, 2021
+Level 2
+Level 3
+90.2
+5.5
+(248.2)
+Actuarial (gains)/losses on obligations
+- due to change in demographic
+64.6
+assumptions
+Expected return
+Actuarial gain
+Employer's contribution during the year
+Benefits paid
+172.3
+191.9
+(17.6)
+(6.4)
+410.9
+19.2
+(127.1)
+(248.2)
+3,091.7
+2,653.2
+157
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+As at March 31, 2021
+2,696.7
+88.8
+2,653.2
+(Funded)
+Plan assets as at the year end
+Annual Report 2020-21
+As at
+* in Million
+As at
+March 31, 2021
+Gratuity
+(Funded)
+3,330.8
+(3,091.7)
+239.1
+March 31, 2020
+Gratuity
+(Funded)
+2,949.6
+(2,653.2)
+296.4
+Year ended
+March 31, 2021
+Gratuity
+* in Million
+Year ended
+March 31, 2020
+Gratuity
+(Funded)
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund
+Scheme. It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to
+specific benefit at the time of retirement or termination of the employment on completion of five years or death while
+in employement. The level of benefit provided depends on the member's length of service and salary at the time of
+retirement/termination age. Provision for gratuity is based on actuarial valuation done by an independent actuary as
+at the year end. Each year, the Company reviews the level of funding in gratuity fund and decides its contribution.
+The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets the
+requirements of gratuity payments in short to medium term.
+541.5
+414.4
+Expense/(income) charged to other
+6.4
+17.6
+Actuarial gain on plan assets
+obligation
+199.2
+74.2
+80.8
+74.2
+Actuarial loss (gain) on defined benefit
+recognised in other comprehensive income
+Remeasurement of defined benefit obligation
+244.3
+67.5
+19.8
+37.4
+80.8
+205.6
+182.3
+67.5
+191.6
+65.6
+Interest cost
+253.9
+296.9
+Current service cost
+2,562.4
+949.3
+2,949.6
+1,009.7
+Obligation as at the beginning of the year
+Reconciliation of defined benefit obligations
+comprehensive income
+316.2
+Benefits paid
+65.6
+(191.9)
+Notes to the Standalone Financial Statements
+156
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as
+at the year end using the 'Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating
+to defined benefit obligation are recognised in other comprehensive income whereas gains and losses in respect of
+other long term employee benefit plans are recognised in profit or loss.
+Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company
+policy with corresponding charge to the statement of profit and loss amounting to ₹419.1 Million [March 31, 2020
+:*368.5 Million] and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of
+service and employee compensation.
+Other long term benefit plan
+iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries
+of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
+for the year ended March 31, 2021
+iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best
+estimate of the mortality of plan participants both during and after their employment. An increase in the life
+expectancy of the plan participants will increase the plan's liability.
+Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate
+determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual
+return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by
+investment in LIC managed fund.
+ii)
+i)
+These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk
+and salary risk.
+Risks
+The Company has an obligation towards pension, a defined benefit retirement plan, with respect to certain employees,
+who had already retired before March 01, 2013 and will continue to receive the pension as per the pension plan.
+Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be
+partially offset by an increase in the return on the plan's debt investments.
+Expense recognised in the statement of profit and
+loss (Refer Note 34)
+Financial Statements
+Standalone Accounts
+(172.3)
+Expected return on plan assets
+182.3
+67.5
+191.6
+65.6
+Interest cost
+253.9
+296.9
+Current service cost
+Year ended March 31, 2020
+Pension Fund
+Gratuity
+(Unfunded)
+(Funded)
+Gratuity
+(Funded)
+(Unfunded)
+Year ended March 31, 2021
+Pension Fund
+* in Million
+Expense charged to the statement of profit
+and loss
+(61.9)
+(127.1)
+(87.9)
+2,187.1
+2,853.8
+2,122.9
+2,674.2
+The major categories of plan assets are as under
+Central government securities
+Thereafter
+Bonds and securities
+Surplus fund lying uninvested
+The contribution expected to be made by the
+Company for gratuity, during financial year ending
+March 31, 2022 is 521.6 Million (Previous year :
+*556.2 Million)
+158
+11.3
+9.7
+Insurer managed funds (Funded with LIC, break-up
+not available)
+337.2
+85.5
+355.6
+88.0
+383.0
+4th
+year
+year
+5th year
+91.5
+425.2
+87.1
+348.4
+90.4
+407.5
+86.1
+354.6
+89.5
+77.1
+1,913.7
+66.2
+1,642.2
+1,089.6
+935.1
+Financial assets and liabilities measured at fair value on a recurring basis at
+the end of each reporting period
+NOTE: 42 FAIR VALUE HIERARCHY
+Derivatives not designated as hedges
+Derivative designated as hedge
+Product settlement, claims, recall charges and trade commitments
+Payables on purchase of property, plant and equipment
+Security deposits
+Unpaid dividends
+Payables to employee
+Trade payables
+Interest accrued
+Borrowings
+Financial liabilities
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+Financial assets
+92.5
+Investments in equity - quoted #
+Mutual funds
+84.4
+77.2
+2,056.2
+21,292.7
+64,058.8
+46.6
+Amortised cost
+* in Million
+As at March 31, 2020
+Fair value
+through other
+comprehensive
+income
+Financial Statements
+Standalone Accounts
+Fair value through
+profit or loss
+Financial assets and liabilities measured at fair value on a recurring basis at
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Financial liabilities
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Investments in equity - unquoted
+Derivative
+Other than trade receivables, the Company has recognised an allowance of *15.3 Million (March 31, 2020 : *4.5 Million)
+against past due loans including interest and *500.0 Million (March 31, 2020: *500.0 Million) of other receivables based on
+assessment regarding recoverability of the same.
+1-3 years
+1.6
+1,170.4
+11,670.3
+Trade payables
+3,657.4
+3,657.4
+Borrowings
+Financial liabilities
+69,017.5
+4,903.3
+164.9
+2,894.6
+2,786.6
+54,773.8
+parties
+2,601.6
+2,601.6
+Other receivables - from related
+7,313.8
+7,313.8
+Loans to related parties
+2,095.4
+3,659.2
+646.1
+13,653.3
+Product settlement, claims, recall
+3,438.1
+47.7
+4,284.5
+562.3
+1,103.7
+Cash and cash equivalents
+43,679.3
+Trade receivables
+Financial assets
+Total
+Others
+South African
+Rand
+As at March 31, 2020
+Russian
+Rouble
+Euro
+US Dollar
+36,058.9
+646.1
+164.9
+1.6
+2,057.4
+33,188.9
+charges and trade commitments
+18,748.2
+887.0
+17,861.2
+57,006.7
+1,287.4
+4,891.7
+11.6
+3,627.3
+31.9
+676.3
+676.3
+94,052.8
+21,159.9
+21,159.9
+21,292.7
+21,292.7
+64,191.5
+3,061.9
+9,529.4
+51,600.2
+9,529.4
+161.7
+161.7
+As at
+March 31, 2020
+1-3 years
+Less than 1 year
+* in Million
+36.8
+36.8
+36.8
+36.8
+115,231.5
+46,197.2
+2,141.2
+Less than 1 year
+More than 3 years
+3,061.9
+106,644.1
+838.0
+2,149.8
+636.8
+43,443.3
+1,415.1
+Cash and cash equivalents
+Trade receivables
+Financial assets
+Total
+Others
+South African
+Rand
+As at March 31, 2021
+Russian
+Rouble
+Euro
+US Dollar
+in Million
+a) Significant foreign currency risk exposure relating to trade receivables, other receivables, cash and cash equivalents,
+borrowings and trade payables
+The Company's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily
+in US Dollars, Euros, South African Rand and Russian Rouble) and foreign currency borrowings (primarily in US Dollars).
+As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company's revenues and
+expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between the Indian rupee
+and these foreign currencies have changed substantially in recent periods and may continue to fluctuate substantially in
+the future. Consequently, the Company uses both derivative and non-derivative financial instruments, such as foreign
+exchange forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate
+the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and
+recognised assets and liabilities.
+Foreign exchange risk
+the market value of its investments. Thus, the Company's exposure to market risk is a function of investing and borrowing
+activities and revenue generating and operating activities in foreign currencies.
+Financial Statements
+Standalone Accounts
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+152
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
+market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of
+market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable
+to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-
+term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and
+Market risk
+838.0
+2,894.6
+1,843.6
+10.7
+* in Million
+Other receivables - from related
+parties
+69,333.4
+Annual Report 2020-21
+153
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+b)
+Sensitivity
+For the years ended March 31, 2021 and March 31, 2020, every 5% strengthening in the exchange rate between
+the Indian rupee and the respective currencies for the above mentioned financial assets/liabilities would (decrease) /
+increase the Company's profit and (decrease) / increase the Company's equity by approximately (1,647.9) Million and
+*520.6 Million respectively. A 5% weakening of the Indian rupee and the respective currencies would lead to an equal
+but opposite effect.
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because
+the exposure at the end of the reporting period does not reflect the exposure during the year.
+Derivative contracts
+The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily
+in US Dollars, Euros, South African Rand and Russian Rouble, and foreign currency debt is in US Dollars. The Company
+uses foreign currency forward contracts, foreign currency option contracts and currency swap contracts (collectively,
+"derivatives") to mitigate its risk of changes in foreign currency exchange rates. The counterparty for these contracts
+is generally a bank or a financial institution.
+More than 3 years
+54,532.9
+* in Million
+As at
+March 31, 2021
+18,851.9
+2,141.2
+46,197.2
+67,190.3
+25,926.1
+25,926.1
+22,115.1
+22,115.1
+66,893.1
+4,396.7
+140.0
+Hedges of highly probable forecasted transactions
+750.0
+1.3
+Borrowings
+Financial liabilities
+58,922.2
+1,854.3
+1,287.4
+3,485.8
+4,846.8
+47,447.9
+35,980.1
+1,724.4
+2,664.9
+2,664.9
+39,679.9
+3,699.8
+18,537.9
+Trade payables
+9,527.4
+750.0
+1.3
+140.0
+696.9
+11,115.6
+Product settlement, claims, recall
+18,537.9
+charges and trade commitments
+64,045.4
+5,000.0
+5,000.0
+INE044A14575
+10-Jun-20
+As per our report of even date
+09-Sep-20
+3,000.0
+15 Figures for previous year have been regrouped / reclassified wherever considered necessary.
+09-Sep-20
+11-May-20
+17-Jun-20
+Due Date of
+Payment
+18-Mar-20
+(ii) Debt service coverage ratio = Profit after tax but before finance costs, depreciation
+and exceptional item / (Finance costs + Short-term borrowings + Current maturities
+of long-term borrowings and lease liabilities)
+196,782.6
+(iii) Interest service coverage ratio = Profit before finance costs, exceptional item and tax
+/ Finance costs
+As at
+(iv) Asset cover = (Total assets - Intangible assets - Current liabilities excluding Short-
+term borrowings and Current maturities of long-term borrowings and lease liabilities)
+(c)
+9.73
+8.97
+4.76
+4.97
+/ (Long-term borrowings + Short-term borrowings + Current maturities of long-term
+borrowings and lease liabilities)
+Details of issuance date, due dates and actual dates and amounts of repayment of listed unsecured commercial paper:
+ISIN NO
+Issuance Date
+Actual Date of
+Repayment
+Redemption
+Amount (* in
+Million)
+INE044A14542
+11-Feb-20
+INE044A14567
+11-May-20
+17-Jun-20
+7.5
+26-Feb-21
+Net Worth
+N/A
+28-Jan-22
+29-Jan-21
+INE044A14617
+2,500.0
+5,000.0
+01-Dec-20
+29-Dec-20
+29-Dec-20
+01-Dec-20
+INE044A14609
+01-Dec-20
+03-Sep-20
+INE044A14591
+4,000.0
+N/A
+15-Jun-21
+26-Aug-20
+INE044A14583
+(i) Debt equity ratio = (Long-term borrowings + Short-term borrowings + Current
+maturities of long-term borrowings and lease liabilities) / (Total equity)
+7,300.0
+As at
+March 31, 2021
+INE044A14625
+26-Feb-21
+Capital Redemption Reserve
+Ratios and Formulae
+* in Million
+Financial Statements
+Standalone Accounts
+(d) Networth and Capital redemption reserve
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+164
+3,000.0
+N/A
+28-May-21
+26-Feb-21
+INE044A14641
+4,000.0
+19-Mar-21
+19-Mar-21
+02-Feb-21
+INE044A14633
+5,000.0
+02-Feb-21
+Ratios and Formulae
+* in Million
+1.45
+Realstone Infra Limited, India
+Softdeal Trading Company Private Limited, India
+Skisen Labs Private Limited, India
+206.6
+Zenotech Laboratories Limited, India
+Sun Pharmaceutical Medicare Limited, India
+Loans / advances outstanding from subsidiaries
+10.1
+0.2
+0.2
+4,217.2
+307.0
+4,217.2
+186.6
+5,345.2
+206.6
+0.2
+* in Million
+Maximum balance
+March 31, 2020
+March 31, 2020
+March 31, 2021
+As at
+Maximum balance
+As at
+March 31, 2021
+NOTE: 51 LOANS / ADVANCES GIVEN TO SUBSIDIARIES AND ASSOCIATES
+The Company has not defaulted on repayment of loan and interest payment thereon during the year. The
+aforementioned unsecured ECBs are availed from various banks at floating rate linked to Libor (0.66% as at March 31,
+2021) and secured loan from department of biotechnology have been availed at a range from 2% to 3%
+NOTE: 50 RELATED PARTY DISCLOSURES (IND AS 24) AS PER ANNEXURE "A"
+(III) Unsecured loan from related party of ₹44,427.3 Million (March 31, 2020 : Nil). The loan is repayable by Mar 31, 2026.
+The loan has been availed at 6.50%.
+(II) Secured term loan from department of biotechnology of 75.7 Million (March 31, 2020 : 108.2 Million) has
+been secured by hypothecation of movable assets of the Company. The loan is repayable in 10 equal half yearly
+installments commencing from December 14, 2020.
+(d) JPY Nil (March 31, 2020 : JPY 5317.5 Million) equivalent to Nil (March 31, 2020: 3,699.9 Million). The loan was
+taken on August 11, 2015 in USD. The currency of the loan was changed to JPY on August 8, 2019. The loan was
+due for repayment on February 08, 2022. The loan has been repaid during the year.
+(c) USD 50 Million (March 31, 2020 : USD 50 Million) equivalent to *3,657.4 Million (March 31, 2020: 3,771.5
+Million). The loan was taken on October 03, 2018 and is repayable in 2 equal installments of USD 25 Million
+each. The first installment of USD 25 Million is due on October 1, 2021 and last installment of USD 25 Million is
+due on October 3, 2022.
+500.6
+(b) USD Nil (March 31, 2020 : USD 25 Million) equivalent to Nil (March 31, 2020 : 1,885.8 Million). The loan,
+originally taken on September 20, 2012 and was repayable in 2 equal installments of USD 25 Million each. The
+first installment of USD 25 Million had been repaid during year ended Mar 31, 2020, second installment of USD
+25 Million is repaid during the year.
+500.7
+178.0
+The preparation of the Company's financial statements requires the management to make judgements, estimates and
+assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
+disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and
+underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
+in which the estimates are revised and in any future periods affected. In particular, information about significant areas of
+estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the
+amounts recognised in the financial statements is included in the following notes:
+NOTE: 53 USE OF ESTIMATES, JUDGMENTS AND ASSUMPTIONS
+(*) includes provision for trade commitments, discounts, rebates, price reduction and product returns
+22,335.8
+15,441.9
+At the end of the year
+(1,749.6)
+1,523.6
+22,561.8
+22,335.8
+1,706.8
+(8,600.7)
+Less: Utilisation / settlement / reversal
+Add: Provision for the year
+At the commencement of the year
+* in Million
+Year ended
+March 31, 2020 *
+Year ended
+March 31, 2021 *
+In respect of any present obligation as a result of past event that could lead to a probable outflow of resources, provisions
+has been made, which would be required to settle the obligation. The said provisions are made as per the best estimate
+of the management and disclosure as per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has been
+given below:
+NOTE: 52
+Financial Statements
+Standalone Accounts
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+160
+These loans have been granted to the above entities for the purpose of their business.
+7,313.8
+7,313.8
+Sun Pharmaceutical Inc. USA
+Sun Pharma Distributors Limited, India
+Litigations [Refer Note 2 (2.2) (m) and Note 39]
+for the year ended March 31, 2021
+CARE
+1,039.0
+1,096.1
+354.1
+367.2
+* in Million
+As at
+March 31, 2020
+As at
+March 31, 2021
+Closing balance
+Payment towards lease liabilities
+Effect of changes in foreign exchange rates
+Deletion
+Interest on lease liabilities
+Addition
+Addition on account of transition to Ind AS 116
+Opening balance
+Movement of lease liabilities
+Later than five years
+Later than one year and not later than five years
+Not later than one year
+Lease liabilities - Maturity analysis - contractual undiscounted cashflows
+Effective April 01, 2019, the Company has adopted Ind AS 116 “Leases", and applied to all lease contracts existing on
+April 01, 2019 using the modified retrospective method. Accordingly, the Company has recognised a lease liability
+measured at the present value of the remaining lease payments, and right-of-use (ROU) asset at an amount equal to
+lease liability (adjusted for any related prepayments). Management has excercised judgement in determining whether
+extension and termination options are reasonably certain to be excercised. Expenses relating to short-term leases and
+low-value assets for year ended March 31, 2021 is 20.1 Million (March 31, 2020 : 25.9 Million).
+a)
+NOTE: 48 LEASES
+Financial Statements
+Standalone Accounts
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+3,147.3
+Notes to the Standalone Financial Statements
+3,698.6
+5,091.7
+Sun Pharmaceutical Industries Limited
+159
+Annual Report 2020-21
+(a) USD Nil (March 31, 2020 : USD 100 Million) equivalent to Nil (March 31, 2020 : ₹7,543.0 Million). The loan,
+originally taken on June 04, 2013 and was repayable in 3 installments viz. first installment of USD 30 Million is
+due on June 01, 2020, second installment of USD 30 Million is due on December 1, 2020 and last installment of
+USD 40 Million is due on December 1, 2021. Two installment of USD 30 Million and one installment of USD 40
+Million has been repaid during the year.
+Unsecured External Commercial Borrowings (ECBs) has 1 loan aggregating of USD 50 Million (March 31, 2020 : USD
+175 Million) equivalent to *3,657.4 Million (March 31, 2020: 13,200.3 Million) and 1 loan of JPY Nil(March 31, 2020:
+JPY 5,317.5 Million) equivalent to Nil (March 31, 2020: 3,699.9 Million). For the ECB loans outstanding as at March
+31, 2021, the terms of repayment for borrowings are as follows:
+(1)
+Details of long term borrowings and current maturities of long term debt (included under other current financial
+liabilities)
+NOTE: 49 BORROWINGS
+The Company has given certain premises and plant and machinery under operating lease or leave and license
+agreements. These are generally not non-cancellable and periods range between 11 months to 5 years under leave
+and license/lease and are renewable by mutual consent on mutually agreeable terms. The Company has received
+refundable interest free security deposits where applicable in accordance with the agreed terms.
+b)
+2,211.8
+2,216.5
+(298.2)
+(391.9)
+0.4
+0.2
+(59.3)
+157.1
+193.9
+485.7
+1,866.8
+261.8
+2,211.8
+Year ended
+March 31, 2020
+Year ended
+March 31, 2021
+in Million
+4,610.6
+0.75
+a)
+Revenue [Refer Note 2(2.2)(n)]
+Construction / acquisition of any asset
+i)
+Amount spent during the year ended on March 31, 2020
+Total
+Yet to be paid in
+cash
+In cash
+* in Million
+269.5
+269.5
+ii) On purpose other than (i) above
+Amount spent during the year ended on March 31, 2021
+Construction / acquisition of any asset
+i)
+Total
+Yet to be paid in
+cash
+In cash
+* in Million
+- Gross amount required to be spent by the Company during the year 2020-21 is 129.8 Million (March 31, 2020 :
+*26.9 Million)
+Details of CSR expenditure:
+10 Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with
+Schedule VII thereof: *269.5 Million (March 31, 2020: 43.7 Million).
+The date of implementation of the Code on Wages 2019 and the Code on Social Security, 2020 is yet to be notified
+by the Government. The Company will assess the impact of these Codes and give effect in the audited standalone
+financial statements when the Rules/Schemes thereunder are notified.
+The Company had announced buy-back of equity shares from open market through stock market mechanism as
+prescribed by Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 at a maximum
+price of *425/- per equity share, for an aggregate maximum amount of up to 17,000 Million. The Buy-back period
+commenced on March 26, 2020 and ended on September 25, 2020. No equity shares were bought back under the
+Buy-back as the volume weighted average market price of equity shares of the Company during the Buy-Back period
+was higher than the maximum buy-back price.
+In accordance with Ind AS 108 "Operating Segments", segment information has been given in the consolidated Ind
+AS financial statements, and therefore, no separate disclosure on segment information is given in these financial
+statements.
+in the consent decree. The Mohali facility continues to demonstrate sustainable cGMP compliance as required by the
+consent decree. The Company continues to receive approval of applications, manufacture and distribute products to
+the U.S from this facility.
+9
+8
+ii) On purpose other than (i) above
+7
+42.7
+43.7
+0.26
+0.27
+As at
+March 31, 2020
+For S RBC & CO LLP
+Rating
+CRISIL A1+
+ICRA A1+
+(b) Ratios
+ICRA
+CRISIL
+Name of Credit Rating Agency
+Credit rating and change in credit rating, if any:
+(a)
+The Company has issued listed unsecured commercial paper during the year.
+Information as required pursuant to Regulation 52(4) of SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015:
+14
+13 Government of India vide press release dated December 31, 2020 introduced the benefit of the Scheme for
+Remission of Duties and Taxes on Exported Products (RoDTEP) to all export goods with effect from January 01, 2021.
+Considering that the rates of RODTEP are yet to be notified, the Company has not accrued income relating to benefits
+of RODTEP scheme for the period January 01, 2021 to March 31, 2021.
+Scheme shall be effective post completion of all necessary formalities and procedures and accordingly, the standalone
+financial statements do not reflect the impact on account of the Scheme.
+for the year ended March 31, 2021
+Notes to the Standalone Financial Statements
+CARE
+Sun Pharmaceutical Industries Limited
+163
+Annual Report 2020-21
+12 The Board of Directors of the Company at its meeting held on July 31, 2020, approved the Scheme of Amalgamation
+and Merger of Sun Pharma Global FZE (wholly owned subsidiary of the Company) with Sun Pharmaceutical Industries
+Limited, and their respective members and creditors which inter-alia, envisages merger of Sun Pharma Global FZE into
+the Company with an appointed date of January 01, 2020. The approval of the only secured creditor, shareholders and
+unsecured creditors of the Company were received in the year ended March 31, 2021 at their respective meetings.
+The Company has filed the requisite petition with the National Company Law Tribunal seeking its approval. The
+The Company continues to monitor the impact of COVID-19 on its business, including its impact on customers,
+supply-chain, employees and logistics. Due care has been exercised, in concluding on significant accounting
+judgements and estimates, including in relation to recoverability of receivables, assessment of impairment of goodwill
+and intangibles, investments and inventory, based on the information available to date, while preparing the Company's
+audited standalone financial statements as on year ended March 31, 2021.
+11
+1.0
+b)
+Financial Statements
+Standalone Accounts
+Notes to the Standalone Financial Statements
+CARE
+Sun Pharmaceutical Industries Limited
+161
+119,067.4
+125,709.3
+(13,045.7)
+(16,663.5)
+(12,292.9)
+(15,806.0)
+(752.8)
+(857.5)
+132,113.1
+Annual Report 2020-21
+Revenue from contract with customers
+Rebates, discounts and price reduction
+Provision for sales return
+Less :
+Revenue as per contracted price, net of returns
+* in Million
+Year ended
+March 31, 2020
+Year ended
+March 31, 2021
+142,372.8
+The reconciling items of revenue recognised in the statement of profit and loss with the contracted price are as follows
+The Company has recorded an additional amount of *310.3 Million (March 31, 2020 : ₹1,326.5 Million) as deferred
+revenue pursuant to the requirements of Ind AS 115. Revenue of $152.0 Million (March 31, 2020: *26.3 Million) has been
+recognised as Revenue from contract with customer pursuant to completion of performance obligation in respect of the
+above contracts.
+NOTE: 54 REVENUE FROM CONTRACTS WITH CUSTOMERS
+Impairment of goodwill and intangible assets [Refer Note 2(2.2) (g)]
+c)
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+for the year ended March 31, 2021
+March 31, 2021
+162
+In September 2013, the USFDA had put the Mohali facility under import alert and was also subjected to certain
+provisions of the consent decree of permanent injunction entered in January 2012 by erstwhile Ranbaxy Laboratories
+Ltd (which was merged with Sun Pharmaceutical Industries Ltd in March 2015). In March 2017, the USFDA lifted the
+import alert and indicated that the facility was in compliance with the requirements of cGMP provisions mentioned
+In December 2019, the USFDA inspected the Halol facility and issued Form 483 with 8 observations. Post the
+submission of the company's response in January 2020, the USFDA classified the inspection status as Official Action
+Indicated (OAI). The company was in continuous communication with the USFDA to resolve the outstanding issues
+and is awaiting a re-inspection by USFDA to resolve the OAI status. However, due to ongoing COVID-19 pandemic
+and travel restrictions, the re-inspection is delayed. The Company continues to manufacture and distribute products
+to the U.S from this facility. However, the OAl status normally implies that the USFDA may put all new approvals from
+the Halol facility on hold till the OAI status is changed.
+The USFDA, on January 23, 2014, had prohibited using API manufactured at Toansa facility for manufacture of
+finished drug products intended for distribution in the U.S. market. Consequentially, the Toansa manufacturing facility
+was subject to certain provisions of the consent decree of permanent injunction entered in January 2012 by erstwhile
+Ranbaxy Laboratories Ltd (which was merged with Sun Pharmaceutical Industries Ltd in March 2015). In addition, the
+Department of Justice of the USA ('US DOJ'), United States Attorney's Office for the District of New Jersey had also
+issued an administrative subpoena dated March 13, 2014 seeking information. The Company continues to fully co-
+operate and provide requisite information to the US DOJ.
+Since the USFDA import alert at Karkhadi facility in March 2014, the Company remained fully committed to
+implement all corrective measures to address the observations made by the USFDA with the help of third party
+consultant. The Company had completed all the action items to address the USFDA warning letter observations issued
+in May 2014. The company is awaiting a re-inspection of the facility by the USFDA to resolve the import alert. The
+contribution of this facility to Company's revenues was negligible.
+On March 25, 2021 the Court of Justice to the European Union (CJEU) issued a final judgment and upheld the
+European Commission's ("EC") decision dated June 19, 2013 that a settlement agreement between Ranbaxy (U.K.)
+Limited and Ranbaxy Laboratories Limited (together "Ranbaxy") with Lundbeck was anti-competitive. Ranbaxy had
+made a provisional payment of the fine of Euros 10.3 Million on 20 September 2013. Since there are no further rights
+of appeal, this amount of *895.6 Million (inclusive of legal charges) was provided in the standalone financial statement
+for the year ended March 31, 2021.
+Intangible assets consisting of trademarks, designs, technical knowhow, non compete fees and other intangible assets
+are available to the Company in perpetuity. The amortisable amount of intangible assets is arrived at based on the
+management's best estimates of useful lives of such assets after due consideration as regards their expected usage,
+the product life cycles, technical and technological obsolescence, market demand for products, competition and their
+expected future benefits to the Company.
+6
+5
+4
+3
+2
+1
+The performance obligation is satisfied when control of the goods or services are transferred to the customers based on
+the contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
+NOTE: 55
+Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
+revenue received from customer for which performance obligation has not yet been completed.
+5,884.9
+61,681.3
+434.1
+3,754.1
+63,706.2
+642.0
+Contract liabilities
+Contract assets
+Trade receivables
+Contract balances
+As at
+March 31, 2020
+* in Million
+As at
+Chartered Accountants
+March 31, 2021
+per PAUL ALVARES
+Aditya Medisales Limited
+United Medisales Private Limited
+PV Power Technologies Private Limited
+Fortune Integrated Assets Finance Ltd
+Suraksha Asset Reconstruction Private Limited
+Kism Textiles Private Limited
+Alfa Infraprop Private Limited
+Shantilal Shanghvi Foundation
+Footnote
+1
+Incorporated/ Acquired during the year
+2 Incorporated Acquired during the previous year
+3
+4
+5
+Sidmak Laboratories (India) Private Limited
+Dissolved/Liquidated during the year
+Ramdev Chemicals Private Limited (upto April 25, 2019)
+Sun Pharma Advanced Research Company Limited.
+Sudhir Vrundavandas Valia
+Sailesh Trambaklal Desai
+Israel Makov
+Kalyanasundaram lyer Natesan Subramanian
+Relatives of Key Management Personnel
+Managing Director
+"ANNEXURE "A"
+Non-Executive Director (Designation changed from Whole-time
+Director to Non-Executive Director on May 29, 2019) and
+Non-Independent Director
+Wholetime Director
+Chairman and Non-Executive Director (Non- Independent)
+Wholetime Director
+e
+Aalok Shanghvi
+Vidhi Shanghvi
+f
+Others (Entities in which the KMP and relatives of KMP have control or Significant influence)
+Makov Associates Limited
+Sun Petrochemicals Private Limited
+Dissolved/Liquidated during the previous year
+Pola Pharma Inc. has been merged with Sun Pharma Japan Ltd w.e.f. January 01, 2020.
+6 Holds voting power of 85.18% (beneficial ownership 77.78%) [March 31, 2020 84.73% (beneficial ownership 77.10%)]
+Others
+Year ended
+March 31, 2021
+4,879.2
+* in Million
+Year ended
+March 31, 2020
+3,355.8
+4,874.5
+3,344.2
+4.7
+11.6
+Purchase of property, plant and equipment
+2,195.7
+46.6
+Subsidiaries
+624.2
+46.1
+Others
+Subsidiaries
+Purchase of goods
+Type of Transaction
+ANNEXURE "A"
+7
+Office Pharmaceutique Industriel Et Hospitalier has been merged with Sun Pharma France (Formerly Known as Ranbaxy Pharmacie
+Generiques) w.e.f. April 01, 2020.
+8 Aquinox Pharmaceuticals (Canada) Inc) has been merged with Taro Pharmaceuticals Inc. w.e.f. July 31, 2020
+9
+Morley & Company, Inc. has been merged with Taro Development Corporation w.e.f. March 27, 2020
+10 Dungan Mutual Associates, LLC has been merged with Mutual Pharmaceutical Company Inc w.e.f. March 16, 2020
+11 URL PharmPro, LLC has been merged with Mutual Pharmaceutical Company Inc w.e.f. March 16, 2020
+Dilip Shantilal Shanghvi
+12 Insite Vision Incorporated, Mutual Pharmaceutical Company Inc and Pharmalucence, Inc. has been merged with Sun Pharmaceutical
+Industries, Inc. w.e.f. April 01, 2020
+167
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2021
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+Detail of related party transaction during the year ended March 31, 2021:
+Annual Report 2020-21
+1,571.5
+d Key Management Personnel (KMP)
+Associate
+(Refer Footnote 1 & 8)
+Sun Pharma Philippines, Inc.
+Sun Pharmaceuticals Korea Ltd.(Refer Footnote 3)
+Sun Global Development FZE (Refer Footnote 4)
+Caraco Pharmaceuticals Private Limited
+Sun Pharma Japan Ltd.
+Pola Pharma Inc. (Refer Footnote 5)
+Sun Pharma Healthcare FZE (Refer Footnote 4)
+Morley & Company, Inc. (Refer Footnote 9)
+Sun Laboratories FZE
+Taro Pharmaceutical Industries Ltd. (TARO)
+(Refer Footnote 6)
+Taro Pharmaceuticals Inc.
+Taro Pharmaceuticals U.S.A., Inc.
+Taro Pharmaceuticals North America, Inc.
+Sun Pharmaceutical Industries S.A.C.
+Ranbaxy (Poland) Sp. Z o.o.
+Terapia SA
+Aquinox Pharmaceuticals (Canada) Inc)
+AO Ranbaxy
+Sun Pharmaceuticals SA (Pty) Ltd
+Sun Pharmaceuticals France (Refer Footnote 3)
+Office Pharmaceutique Industriel Et Hospitalier (Refer Footnote 7)
+Basics GmbH
+Ranbaxy Ireland Limited
+Sun Pharma France (Formerly Known as Ranbaxy Pharmacie Sun Pharma Italia srl (Formerly known as Ranbaxy Italia S.P.A.)
+Generiques)
+Ranbaxy (Malaysia) Sdn. Bhd.
+Ranbaxy Nigeria Limited
+Foundation for Disease Elimination and Control of India
+Zenotech Laboratories Limited
+ICAI Firm Registration No.: 324982E/E300003
+Chattem Chemicals Inc.
+The Taro Development Corporation
+Alkaloida Chemical Company Zrt.
+Sun Pharmaceutical Industries (Australia) Pty Limited
+Aditya Acquisition Company Ltd.
+Sun Pharmaceutical Industries (Europe) B.V.
+Sun Pharmaceuticals Germany GmbH
+Sun Pharma Global FZE
+Ranbaxy South Africa (Pty) Ltd
+Ranbaxy Pharmaceuticals (Pty) Ltd
+Sonke Pharmaceuticals Proprietary Limited
+for the year ended March 31, 2021
+Financial Statements
+Standalone Accounts
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+Names of related parties and description of relationships
+Taro Pharmaceuticals Europe B.V.
+Taro International Ltd.
+3 Skyline LLC
+One Commerce Drive LLC
+Taro Pharmaceutical Laboratories Inc
+Dusa Pharmaceuticals, Inc.
+WRS Bioproducts Pty Ltd. (Refer Footnote 1)
+Names of related parties where there are transactions and description of relationships
+b Joint Ventures
+C
+Artes Biotechnology GmbH
+Notes to the Standalone Financial Statements
+166
+Sun Pharmaceuticals (EZ) Limited (Refer Footnote 1)
+Sun Pharma (Shanghai) Limited (Refer Footnote 1)
+Realstone Infra Limited (Refer Footnote 2)
+Sun Pharma Laboratorios,S.L.U. (Formerly known as Laboratorios
+Ranbaxy, S.L.U.)
+Ranbaxy (U.K.) Limited
+Ranbaxy Holdings (U.K.) Limited
+Ranbaxy Inc.
+Ranbaxy (Thailand) Co., Ltd.
+Ohm Laboratories, Inc.
+Ranbaxy Signature LLC
+Medinstill Development LLC
+Sun Pharmaceuticals Morocco LLC
+Insite Vision Incorporated (Refer Footnote 12)
+Sun Pharmaceutical Medicare Limited
+JSC Biosintez
+Sun Pharmaceuticals Holdings USA, Inc.
+Zenotech Laboratories Nigeria Limited (Refer Footnote 4)
+Zenotech Inc
+Zenotech Farmaceutica Do Brasil Ltda
+Sun Pharma Distributors Limited
+Kayaku Co., Ltd.
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+0.5
+"ANNEXURE "A"
+101,858.6
+62,904.8
+22,494.7
+62,904.8
+22,494.7
+168
+Sun Pharma Egypt Limited LLC
+Rexcel Egypt LLC
+PI Real Estate Ventures, LLC
+Sun Pharma ANZ Pty Ltd
+Ranbaxy Farmaceutica Ltda.
+Sun Pharma Canada Inc.
+Pharmalucence, Inc. (Refer Footnote 12)
+Sun Pharma East Africa Limited
+Sun Pharma Switzerland Limited
+Universal Enterprises Private Limited
+2 Independence Way LLC
+URL PharmPro, LLC (Refer Footnote 11)
+Mutual Pharmaceutical Company Inc. (Refer Footnote 12)
+Dungan Mutual Associates, LLC (Refer Footnote 10)
+Sun Pharma (Netherlands) B.V.
+34,178.4
+as Softdeal Trading Company Private Limited)
+95,133.0
+95,133.0
+0.1
+Subsidiaries
+Security Deposit given
+Subsidiaries
+Sales of investment
+0.1
+10.9
+10.9
+8,570.9
+Subsidiaries
+Loan taken
+Subsidiaries
+Loan repaid
+Subsidiaries
+8,570.9
+34,178.4
+Softdeal Pharmaceuticals Private Limited (Formerly known
+Sun Pharma Holdings
+Realstone Multitrade Private Limited
+Skisen Labs Private Limited
+Annual Report 2020-21
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+Company Secretary
+SUNIL R. AJMERA
+(DIN: 00005588)
+Managing Director
+Partner
+Membership No.: 105754
+As at
+March 31, 2020
+7.5
+190,343.2
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Revenue from contracts with customers, net of returns
+165
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Standalone Financial Statements
+Neetnav Real Estate Private Limited
+Faststone Mercantile Company Private Limited
+Sun Pharma Laboratories Limited
+Sun Pharma De Venezuela, C.A.
+OOO "Sun Pharmaceutical Industries” Limited
+Sun Pharmaceutical Peru S.A.C.
+SPIL De Mexico S.A. DE C.V.
+128.2
+Sun Pharma De Mexico S.A. DE C.V.
+Sun Pharmaceutical Industries, Inc.
+Sun Pharmaceutical (Bangladesh) Limited
+Green Eco Development Centre Limited
+a
+Names of related parties and description of relationships
+Subsidiaries
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+for the year ended March 31, 2021
+Sun Farmaceutica Do Brasil Ltda.
+5,623.4
+Date: May 27, 2021
+5,623.4
+13.1
+5.3
+65.2
+42.5
+22.7
+1,660.4
+2,014.3
+1,021.7
+1,314.0
+Joint ventures
+Others
+8.0
+45.5
+630.7
+654.8
+20.1
+Reimbursement of expenses (paid)
+9.4
+Receiving of service
+91,454.3
+128.2
+Subsidiaries
+101,821.9
+91,482.2
+Others
+36.7
+Sale of property, plant and equipment
+22.5
+25.4
+Subsidiaries
+Others
+Other operative revenue/Other Income
+Subsidiaries
+Others
+Subsidiaries
+4,674.4
+(27.9)
+4,638.6
+255.0
+Key management personnel
+17.4
+Others
+Loans given
+Subsidiaries
+Loans received back
+1,508.7
+Security Deposit received
+52.7
+40.7
+9,206.3
+1,508.7
+Subsidiaries
+9,206.3
+191.2
+Subsidiaries
+Subsidiaries
+261.3
+Rendering of service
+Others
+1.1
+295.7
+1,037.2
+298.9
+Joint ventures
+5,435.8
+5,136.9
+Subsidiaries(*)
+967.7
+2,723.6
+Others
+69.5
+60.6
+Reimbursement of expenses (received)
+2,784.2
+34.7
+The Group has significant tax litigations for which the Group
+assesses the outcome on a case-to-case basis considering
+the underlying facts of each tax litigation. Adverse outcomes
+could significantly impact the Group's reported profit and
+balance sheet position.
+Tax litigations and recognition of deferred tax assets (as described in note 39 and 50 of the consolidated Ind AS financial
+statements)
+How our audit addressed the key audit matter
+Key audit matter
+Financial Statements
+Consolidated Accounts
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+Obtained the Group's computation of recoverable amount and
+tested the mathematical accuracy and reasonableness of key
+assumptions, including profit and cash flow forecast, terminal
+values, potential product obsolescence and the discount rates.
+Obtained and evaluated management's sensitivity analysis
+to ascertain the impact of changes in key assumptions and
+performed our own independent sensitivity calculations to
+quantify the downside impact to determination of recoverable
+amount.
+Evaluated the design and tested the operating effectiveness
+of management's controls in assessing the carrying value of
+goodwill and intangible assets.
+The assessment of outcome of litigations involves significant
+judgement which is dependent on the facts of each case,
+supporting judicial precedents and legal opinions of external
+and internal legal counsels and hence the matter has been
+considered as a Key Audit Matter.
+The Group has significant intangible assets, comprising
+acquired trademarks, product intangibles and goodwill. The
+Group conducts an annual impairment testing of goodwill and
+intangible assets using discounted cash flow method.
+Significant judgements are used to estimate the recoverable
+amount of these intangible assets and goodwill. The
+determination of recoverable amounts involves use of several
+key assumptions, including estimates of future sales volume,
+and prices, operating costs, terminal value growth rates and
+the weighted average cost of capital (discount rate) and is
+hence is considered as a Key Audit Matter.
+Goodwill and other intangible assets (as described in note 3B and 47 of the consolidated Ind AS financial statements)
+Evaluated adequacy of disclosures as required by Ind AS 115
+.
+Compared the assumptions in respect of rebates, discounts,
+allowances and returns to current payment trends.
+172
+Recognition of deferred tax assets involves the assessment
+of its recoverability within the allowed time frame requiring
+significant estimate of the financial projections, availability
+of sufficient taxable income in the future and also involving
+significant judgements in the interpretation of tax regulations
+and tax positions adopted by the Group. Considering the
+judgement involved in determining the recovery of deferred
+tax assets, the matter is considered a Key Audit Matter.
+Identification and disclosure of related parties (as described in note 57 of the consolidated Ind AS financial statements)
+.
+Verified the disclosures in the consolidated Ind AS financial
+statements for compliance with Ind AS 24.
+Tested material creditors/debtors, loan given/loans taken to
+evaluate existence of any related party relationships; tested
+transactions based on declarations of related party transactions
+given to the Board of Directors and Audit Committee.
+Read minutes of the meetings of the Board of Directors and
+Audit Committee.
+Obtained a list of related parties from the Group's management
+and traced the related parties to declarations given by directors,
+where applicable, and to note 57 of the consolidated Ind AS
+financial statements.
+Evaluated the design and tested the operating effectiveness
+of controls over identification and disclosure of related party
+transactions.
+.
+•
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+•
+Identification and disclosure of related parties was a
+significant area of focus and hence considered it as a Key
+Audit Matter.
+The Group has related party transactions which include,
+amongst others, sale and purchase of goods/services to its
+associates and joint venture.
+Tested management's assumptions including forecasts and
+sensitivity analysis in respect of recoverability of deferred taxes
+on unabsorbed depreciation/carry forward losses/MAT credit.
+Verified disclosures of the tax positions, tax loss carry
+forwards and tax litigations in the consolidated Ind AS financial
+statements.
+Evaluated the design and tested the operating effectiveness of
+controls in respect of the identification and evaluation of tax
+litigations/deferred tax and the recording and re-assessment of
+the related liabilities/assets and provisions and disclosures.
+Obtained list of ongoing tax litigations from management along
+with their assessment of the cases based on past precedents,
+judgements and matters in the jurisdiction, legal opinions sought
+by management, correspondences with tax department etc.
+Engaged tax specialists, to evaluate management's assessment
+of the outcome of these litigations. Our specialists considered
+legal precedence and other rulings in evaluating management's
+position on these tax litigations.
+•
+•
+.
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+Analysed the historical pattern of chargebacks, the inventory
+information and performed retrospective reviews in order to
+validate management's assumption.
+The Group is involved in various legal proceedings including
+product liability, contracts, employment claims, Department
+of Justice (DOJ) investigations, anti-trust and other regulatory
+matters relating to conduct of its business.
+Obtained and evaluated management's computations for
+accruals under respective contractual arrangements.
+Evaluated the key assumptions used by the Group by comparing
+it with prior years.
+The results of audit procedures performed by us and by
+other auditors of components not audited by us, as reported
+by them in their audit reports furnished to us, including
+those procedures performed to address the matters below,
+provide the basis for our audit opinion on the accompanying
+consolidated Ind AS financial statements.
+statements.
+We have determined the matters described below to be the
+key audit matters to be communicated in our report. We
+have fulfilled the responsibilities described in the 'Auditor's
+responsibilities for the audit of the consolidated Ind AS
+financial statements' section of our report, including in
+relation to these matters. Accordingly, our audit included
+the performance of procedures designed to respond to our
+assessment of the risks of material misstatement of the
+consolidated Ind AS financial statements. The results of our
+audit procedures, including the procedures performed to
+address the matters below, provide the basis for our audit
+opinion on the accompanying consolidated Ind AS financial
+Key audit matters are those matters that, in our professional
+judgment, were of most significance in our audit of the
+consolidated Ind AS financial statements for the financial
+year ended March 31, 2021. These matters were addressed
+in the context of our audit of the consolidated Ind AS
+financial statements as a whole and in forming our opinion
+thereon and we do not provide a separate opinion on these
+matters. For each key audit matter below, our description
+of how our audit addressed the matter is provided in that
+context.
+KEY AUDIT MATTERS
+and joint venture in accordance with the 'Code of Ethics'
+issued by the Institute of Chartered Accountants of India
+together with the ethical requirements that are relevant to
+our audit of the financial statements under the provisions
+of the Act and the Rules thereunder, and we have fulfilled
+our other ethical responsibilities in accordance with these
+requirements and the Code of Ethics. We believe that
+the audit evidence we have obtained is sufficient and
+appropriate to provide a basis for our audit opinion on the
+consolidated Ind AS financial statements.
+We conducted our audit of the consolidated Ind AS
+financial statements in accordance with the Standards on
+Auditing (SAs), as specified under section 143(10) of the
+Act. Our responsibilities under those Standards are further
+described in the 'Auditor's Responsibilities for the Audit of
+the Consolidated Ind AS Financial Statements' section of
+our report. We are independent of the Group, associates
+Annual Report 2020-21
+OTHER INFORMATION
+for the year ended March 31, 2021
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+Detail of related party transaction during the year ended March 31, 2021:
+Type of Transaction
+Dividend income on equity shares
+Subsidiaries
+Interest income
+Notes to the Standalone Financial Statements
+•
+171
+Key audit matter
+Assessed and tested the design and operating effectiveness of
+the Group's controls over the completeness, recognition and
+measurement of accrual.
+•
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+These deductions involve significant judgement and
+estimation, in particular the accruals associated with the
+revenue transactions pertaining to the generics business
+of United States and is hence is considered as a Key Audit
+Matter.
+The Group generates revenue across various geographies
+through commercial arrangements prevalent in those
+geographies. These commercial arrangements involve rebates,
+discounts, chargebacks, right to return and other allowances,
+which are deducted from the gross revenue to arrive at
+Revenue from Operations.
+Rebates, discounts, chargebacks, returns and other allowances (as described in note 53 of the consolidated Ind
+AS financial statements)
+Verified the disclosures related to provisions and contingent
+liabilities in the consolidated Ind AS financial statements to
+assess consistency with underlying documents.
+Sun Pharmaceutical Industries Limited
+CARE
+Circulated, obtained and read legal confirmations from Group's
+external legal counsels in respect of material litigations and
+considered that in our assessment.
+Evaluated the design and tested the operating effectiveness of
+controls in respect of the identification, evaluation of litigations,
+the recording/re-assessment of the related liabilities, provisions
+and disclosures.
+Our audit procedures and procedures performed by component
+auditors amongst others included the following:
+Considering the judgement involved in determining the need
+to make a provision or disclose as contingent liability, the
+matter is considered a Key Audit Matter.
+The eventual outcome of the litigations is uncertain
+and estimation at balance sheet date involves extensive
+judgement of management including input from legal counsel
+due to complexity of each litigation. Adverse outcomes could
+significantly impact the Group's reported profit and balance
+sheet position.
+The Group assesses the need to make provision or to disclose
+a contingent liability on a case-to-case basis considering the
+underlying facts of each litigation.
+Litigations (as described in note 39 of the consolidated Ind AS financial statements)
+How our audit addressed the key audit matter
+Obtained a list of litigations from the Group's in-house legal
+counsel; identified material litigations from the aforementioned
+list and performed inquiries with the said counsel; obtained and
+read the underlying documents to assess the assumptions used
+by management in arriving at the conclusions.
+The Holding Company's Board of Directors is responsible
+for the other information. The other information
+comprises the information included in the Annual report,
+but does not include the consolidated Ind AS financial
+statements and our auditor's report thereon.
+REPORT ON OTHER LEGAL AND REGULATORY
+REQUIREMENTS
+In connection with our audit of the consolidated Ind
+AS financial statements, our responsibility is to read
+the other information and in doing so consider whether
+such other information is materially inconsistent with
+the consolidated Ind AS financial statements or our
+knowledge obtained in the audit or otherwise appears
+to be materially misstated. If, based on the work we
+have performed, we conclude that there is a material
+misstatement of this other information, we are required to
+report that fact. We have nothing to report in this regard.
+per Paul Alvares
+Partner
+ICAI Firm Registration Number: 324982E/E300003
+Chartered Accountants
+There has been no delay in transferring amounts,
+required to be transferred, to the Investor Education
+and Protection Fund by the Holding Company,
+its subsidiaries, associates and joint venture
+incorporated in India, except a sum of 1.13 million,
+which is held in abeyance due to pending legal cases.
+For SR BC & CO LLP
+iii.
+Provision has been made in the consolidated
+Ind AS financial statements, as required under
+the applicable law or accounting standards, for
+material foreseeable losses, if any, on long-term
+contracts including derivative contracts - Refer
+(a) Note 23 and 28 to the consolidated Ind AS
+financial statements in respect of such items as
+it relates to the Group, its associates and joint
+venture and (b) the Group's share of net loss in
+respect of its associates;
+The consolidated Ind AS financial statements
+disclose the impact of pending litigations on its
+consolidated financial position of the Group, its
+associates and joint venture in its consolidated
+Ind AS financial statements - Refer Note 39 to
+the consolidated Ind AS financial statements;
+Membership Number: 105754
+UDIN: 21105754AAAACV8743
+ii.
+Financial Statements
+Consolidated Accounts
+176
+(h) With respect to the other matters to be included
+in the Auditor's Report in accordance with Rule 11
+of the Companies (Audit and Auditors) Rules, 2014,
+as amended, in our opinion and to the best of our
+information and according to the explanations given
+to us and based on the consideration of the report of
+the other auditors on separate financial statements
+as also the other financial information of the
+subsidiaries, associates and joint venture, as noted in
+the 'Other Matter' paragraph:
+(g) In our opinion and based on the consideration of
+reports of other statutory auditors of the subsidiaries
+and associates incorporated in India, the managerial
+remuneration for the year ended March 31, 2021 has
+been paid / provided by the Holding Company, its
+subsidiaries and associates incorporated in India to
+their directors in accordance with the provisions of
+section 197 read with Schedule V to the Act;
+With respect to the adequacy and the operating
+effectiveness of the internal financial controls
+over financial reporting with reference to these
+consolidated Ind AS financial statements of the
+Holding Company and its subsidiary companies,
+incorporated in India, refer to our separate Report in
+"Annexure 1" to this report;
+(f)
+(e) On the basis of the written representations received
+from the directors of the Holding Company as on
+March 31, 2021 taken on record by the Board of
+Directors of the Holding Company and the reports
+of the statutory auditors who are appointed under
+Section 139 of the Act, of its subsidiary companies,
+associate companies and joint venture, none of the
+directors of the Group's companies, its associates
+and joint venture, incorporated in India, is disqualified
+as on March 31, 2021 from being appointed as a
+director in terms of Section 164 (2) of the Act;
+i.
+(d) In our opinion, the aforesaid consolidated Ind AS
+financial statements comply with the Accounting
+Standards specified under Section 133 of the Act,
+read with Companies (Indian Accounting Standards)
+Rules, 2015, as amended;
+Place of Signature: Pune
+Date: May 27, 2021
+177
+AUDITOR'S RESPONSIBILITY
+Our responsibility is to express an opinion on the company's
+internal financial controls over financial reporting with
+reference to these consolidated Ind AS financial statements
+based on our audit. We conducted our audit in accordance
+with the Guidance Note on Audit of Internal Financial
+Controls Over Financial Reporting (the "Guidance Note")
+and the Standards on Auditing, both, issued by Institute
+of Chartered Accountants of India, and deemed to be
+prescribed under section 143(10) of the Act, to the extent
+applicable to an audit of internal financial controls. Those
+Standards and the Guidance Note require that we comply
+with ethical requirements and plan and perform the audit
+to obtain reasonable assurance about whether adequate
+internal financial controls over financial reporting with
+reference to these consolidated Ind AS financial statements
+was established and maintained and if such controls
+operated effectively in all material respects.
+Our audit involves performing procedures to obtain audit
+evidence about the adequacy of the internal financial
+controls over financial reporting with reference to these
+consolidated Ind AS financial statements and their operating
+effectiveness. Our audit of internal financial controls over
+financial reporting included obtaining an understanding
+of internal financial controls over financial reporting
+with reference to these consolidated Ind AS financial
+statements, assessing the risk that a material weakness
+exists, and testing and evaluating the design and operating
+effectiveness of internal control based on the assessed
+risk. The procedures selected depend on the auditor's
+judgement, including the assessment of the risks of material
+misstatement of the financial statements, whether due to
+fraud or error.
+We believe that the audit evidence we have obtained and
+the audit evidence obtained by the other auditors in terms
+of their reports referred to in the Other Matters paragraph
+below, is sufficient and appropriate to provide a basis for
+our audit opinion on the internal financial controls over
+financial reporting with reference to these consolidated Ind
+AS financial statements.
+MEANING OF INTERNAL FINANCIAL CONTROLS
+OVER FINANCIAL REPORTING WITH REFERENCE TO
+THESE CONSOLIDATED FINANCIAL STATEMENTS
+A company's internal financial control over financial
+reporting with reference to these consolidated Ind AS
+financial statements is a process designed to provide
+reasonable assurance regarding the reliability of financial
+reporting and the preparation of financial statements for
+external purposes in accordance with generally accepted
+accounting principles. A company's internal financial
+control over financial reporting with reference to these
+consolidated financial statements includes those policies
+and procedures that (1) pertain to the maintenance of
+records that, in reasonable detail, accurately and fairly
+reflect the transactions and dispositions of the assets
+of the company; (2) provide reasonable assurance
+that transactions are recorded as necessary to permit
+preparation of financial statements in accordance with
+generally accepted accounting principles, and that receipts
+and expenditures of the company are being made only
+in accordance with authorisations of management and
+Annual Report 2020-21
+178
+The respective Board of Directors of the Holding Company,
+its subsidiary companies, which are companies incorporated
+in India, are responsible for establishing and maintaining
+internal financial controls based on the internal control
+over financial reporting criteria established by the Holding
+Company considering the essential components of internal
+control stated in the Guidance Note on Audit of Internal
+Financial Controls Over Financial Reporting issued by
+the Institute of Chartered Accountants of India. These
+responsibilities include the design, implementation and
+maintenance of adequate internal financial controls that
+were operating effectively for ensuring the orderly and
+efficient conduct of its business, including adherence to
+the respective company's policies, the safeguarding of its
+assets, the prevention and detection of frauds and errors,
+the accuracy and completeness of the accounting records,
+and the timely preparation of reliable financial information,
+as required under the Act.
+MANAGEMENT'S RESPONSIBILITY FOR INTERNAL
+FINANCIAL CONTROLS
+In conjunction with our audit of the consolidated Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited as of and for the year ended March 31, 2021, we
+have audited the internal financial controls over financial
+reporting of Sun Pharmaceutical Industries Limited
+(hereinafter referred to as the "Holding Company") and its
+subsidiary companies, which are companies incorporated in
+India, as of that date.
+REPORT ON THE INTERNAL FINANCIAL CONTROLS
+UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
+143 OF THE COMPANIES ACT, 2013 ("THE ACT")
+Annexure 1 to the Independent Auditors Report of Even Date on the Consolidated
+Ind AS Financial Statements of Sun Pharmaceutical Industries Limited
+CARE
+Sun Pharmaceutical Industries Limited
+Subsidiaries
+Our opinion on the consolidated Ind AS financial
+statements does not cover the other information and we
+do not express any form of assurance conclusion thereon.
+of Other Comprehensive Income, the consolidated
+Cash Flow Statement and consolidated Statement
+of Changes in Equity dealt with by this Report are in
+agreement with the books of account maintained for
+the purpose of preparation of the consolidated Ind
+AS financial statements;
+(b) In our opinion, proper books of account as required
+by law relating to preparation of the aforesaid
+consolidation of the financial statements have been
+kept so far as it appears from our examination of
+those books and reports of the other auditors;
+174
+• Evaluate the overall presentation, structure and
+content of the consolidated Ind AS financial
+statements, including the disclosures, and whether the
+consolidated Ind AS financial statements represent the
+• Conclude on the appropriateness of management's use
+of the going concern basis of accounting and based
+on the audit evidence obtained, whether a material
+uncertainty exists related to events or conditions
+that may cast significant doubt on the ability of the
+Group and its associates and joint venture to continue
+as a going concern. If we conclude that a material
+uncertainty exists, we are required to draw attention
+in our auditor's report to the related disclosures in the
+consolidated Ind AS financial statements or, if such
+disclosures are inadequate, to modify our opinion. Our
+conclusions are based on the audit evidence obtained
+up to the date of our auditor's report. However, future
+events or conditions may cause the Group and its
+associates and joint venture to cease to continue as a
+going concern.
+• Evaluate the appropriateness of accounting policies
+used and the reasonableness of accounting estimates
+and related disclosures made by management.
+• Obtain an understanding of internal control relevant to
+the audit in order to design audit procedures that are
+appropriate in the circumstances. Under section 143(3)
+(i) of the Act, we are also responsible for expressing
+our opinion on whether the Holding Company has
+adequate internal financial controls with reference
+to financial statements in place and the operating
+effectiveness of such controls.
+Identify and assess the risks of material misstatement
+of the consolidated Ind AS financial statements,
+whether due to fraud or error, design and perform
+audit procedures responsive to those risks, and obtain
+audit evidence that is sufficient and appropriate
+to provide a basis for our opinion. The risk of not
+detecting a material misstatement resulting from fraud
+is higher than for one resulting from error, as fraud
+may involve collusion, forgery, intentional omissions,
+misrepresentations, or the override of internal control.
+As part of an audit in accordance with SAs, we exercise
+professional judgment and maintain professional
+skepticism throughout the audit. We also:
+Financial Statements
+Consolidated Accounts
+due to fraud or error, and to issue an auditor's report
+that includes our opinion. Reasonable assurance is a high
+level of assurance, but is not a guarantee that an audit
+conducted in accordance with SAS will always detect a
+material misstatement when it exists. Misstatements can
+arise from fraud or error and are considered material if,
+individually or in the aggregate, they could reasonably be
+expected to influence the economic decisions of users
+taken on the basis of these consolidated Ind AS financial
+statements.
+AUDITOR'S RESPONSIBILITIES FOR THE AUDIT
+OF THE CONSOLIDATED IND AS FINANCIAL
+STATEMENTS
+Those respective Board of Directors of the companies
+included in the Group and of its associates and joint
+venture are also responsible for overseeing the financial
+reporting process of the Group and of its associates and
+joint venture.
+In preparing the consolidated Ind AS financial statements,
+the respective Board of Directors of the companies
+included in the Group and of its associates and joint
+venture are responsible for assessing the ability of the
+Group and of its associates and joint venture to continue
+as a going concern, disclosing, as applicable, matters
+related to going concern and using the going concern
+basis of accounting unless management either intends
+to liquidate the Group or to cease operations, or has no
+realistic alternative but to do so.
+RESPONSIBILITIES OF MANAGEMENT FOR THE
+CONSOLIDATED IND AS FINANCIAL STATEMENTS
+The Holding Company's Board of Directors is responsible
+for the preparation and presentation of these
+consolidated Ind AS financial statements in terms of the
+requirements of the Act that give a true and fair view of
+the consolidated financial position, consolidated financial
+performance including other comprehensive income,
+consolidated cash flows and consolidated statement of
+changes in equity of the Group including its associates
+and joint venture in accordance with the accounting
+principles generally accepted in India, including the
+Indian Accounting Standards (Ind AS) specified under
+section 133 of the Act read with the Companies (Indian
+Accounting Standards) Rules, 2015, as amended. The
+respective Board of Directors of the companies included
+in the Group and of its associates and joint venture are
+responsible for maintenance of adequate accounting
+records in accordance with the provisions of the Act
+for safeguarding of the assets of the Group and of its
+associates and joint venture and for preventing and
+detecting frauds and other irregularities; selection and
+application of appropriate accounting policies; making
+judgments and estimates that are reasonable and prudent;
+and the design, implementation and maintenance of
+adequate internal financial controls, that were operating
+effectively for ensuring the accuracy and completeness
+of the accounting records, relevant to the preparation
+and presentation of the consolidated Ind AS financial
+statements that give a true and fair view and are free from
+material misstatement, whether due to fraud or error,
+which have been used for the purpose of preparation
+of the consolidated Ind AS financial statements by the
+Directors of the Holding Company, as aforesaid.
+Sun Pharmaceutical Industries Limited
+CARE
+173
+Annual Report 2020-21
+Our objectives are to obtain reasonable assurance about
+whether the consolidated Ind AS financial statements as
+a whole are free from material misstatement, whether
+(c) The consolidated Balance Sheet, the consolidated
+Statement of Profit and Loss including the Statement
+underlying transactions and events in a manner that
+achieves fair presentation.
+We communicate with those charged with governance of
+the Holding Company and such other entities included
+in the consolidated Ind AS financial statements of which
+we are the independent auditors regarding, among
+other matters, the planned scope and timing of the audit
+and significant audit findings, including any significant
+deficiencies in internal control that we identify during our
+audit.
+(a) We/the other auditors whose report we have relied
+upon have sought and obtained all the information
+and explanations which to the best of our knowledge
+and belief were necessary for the purposes of our
+audit of the aforesaid consolidated Ind AS financial
+statements;
+As required by Section 143(3) of the Act, based on our audit
+and on the consideration of report of the other auditors
+on separate financial statements and the other financial
+information of subsidiaries, associates and joint venture,
+as noted in the 'Other Matter' paragraph we report, to the
+extent applicable, that:
+Our opinion above on the consolidated Ind AS financial
+statements, and our report on Other Legal and Regulatory
+Requirements below, is not modified in respect of the
+above matters with respect to our reliance on the work
+done and the reports of the other auditors and the
+financial statements and other financial information
+certified by management.
+(c) The consolidated Ind AS financial statements also
+include the Group's share of net loss of *123.3 million
+for the year ended March 31, 2021, as considered
+in the consolidated Ind AS financial statements, in
+respect of 5 associates and a joint venture, whose
+financial statements, other financial information have
+not been audited and whose unaudited financial
+statements, other unaudited financial information
+have been furnished to us by management.
+Our opinion, in so far as it relates amounts and
+disclosures included in respect of these subsidiaries,
+joint venture and associates, and our report in terms
+of sub-section (3) of Section 143 of the Act in so
+far as it relates to the aforesaid subsidiaries, joint
+venture and associates, is based solely on such
+unaudited financial statements and other unaudited
+financial information. In our opinion and according
+to the information and explanations given to us by
+management, these financial statements and other
+financial information are not material to the Group.
+Sun Pharmaceutical Industries Limited
+CARE
+175
+Annual Report 2020-21
+• Obtain sufficient appropriate audit evidence regarding
+the financial information of the entities or business
+activities within the Group and its associates and joint
+venture of which we are the independent auditors
+and whose financial information we have audited,
+to express an opinion on the consolidated Ind AS
+financial statements. We are responsible for the
+direction, supervision and performance of the audit
+of the financial statements of such entities included
+in the consolidated Ind AS financial statements of
+which we are the independent auditors. For the other
+entities included in the consolidated Ind AS financial
+statements, which have been audited by other
+auditors, such other auditors remain responsible for the
+direction, supervision and performance of the audits
+carried out by them. We remain solely responsible for
+our audit opinion.
+The accompanying consolidated Ind AS financial
+statements include unaudited financial statements
+and other unaudited financial information in respect
+of 24 subsidiaries, whose financial statements and
+other financial information, without giving effect
+to elimination of intra-group transactions, reflect
+total assets of $240,338.9 million as at March 31,
+2021, and total revenues of ₹6,186.1 million and
+net cash outflows of 190.1 million for the year
+ended on that date. These financial have been
+prepared in accordance with accounting principles
+generally accepted in their respective countries for
+statutory purposes and have been audited by other
+auditors. The Holding Company's management
+has converted the financial statements of such
+subsidiaries located outside India from accounting
+principles generally accepted in their respective
+countries to accounting principles generally accepted
+in India. In the opinion of the management these
+are not material to the group. We have not audited
+these conversion adjustments made by the Holding
+Company's management. Our opinion in so far as it
+relates to the balances and affairs of such subsidiaries
+located outside India is based on the report of other
+auditors and the conversion adjustments prepared by
+management of the Holding Company.
+Certain of these subsidiaries are located outside
+India whose financial statements and other financial
+information have been prepared in accordance with
+accounting principles generally accepted in their
+respective countries and which have been audited
+by other auditors under generally accepted auditing
+standards applicable in their respective countries.
+The Holding Company's management has converted
+the financial statements of such subsidiaries located
+outside India from accounting principles generally
+accepted in their respective countries to accounting
+principles generally accepted in India. We have
+audited these conversion adjustments made by
+the Holding Company's management. Our opinion
+in so far as it relates to the balances and affairs of
+such subsidiaries located outside India is based on
+the report of other auditors and the conversion
+adjustments prepared by management of the Holding
+Company and audited
+and other financial information have been audited
+by other auditors, whose financial statements, other
+financial information and auditor's reports have been
+furnished to us by management. Our opinion on the
+consolidated Ind AS financial statements, in so far as
+it relates to the amounts and disclosures included in
+respect of these subsidiaries and our report in terms
+of sub-section (3) of Section 143 of the Act, in so
+far as it relates to the aforesaid subsidiaries, is based
+solely on the reports of such other auditors.
+(b)
+(a) We did not audit the financial statements and other
+financial information, in respect of 25 subsidiaries,
+whose Ind AS financial statements, without giving
+effect to elimination of intra-group transactions,
+include total assets of $393,324.1 million as at March
+31, 2021, total revenues of ₹149,035.3 million and
+net cash inflows of 6,217.6 million for the year
+ended on that date. These Ind AS financial statement
+OTHER MATTER
+From the matters communicated with those charged with
+governance, we determine those matters that were of
+most significance in the audit of the consolidated Ind AS
+financial statements for the financial year ended March
+31, 2021 and are therefore the key audit matters. We
+describe these matters in our auditor's report unless law
+or regulation precludes public disclosure about the matter
+or when, in extremely rare circumstances, we determine
+that a matter should not be communicated in our report
+because the adverse consequences of doing so would
+reasonably be expected to outweigh the public interest
+benefits of such communication.
+We also provide those charged with governance with
+a statement that we have complied with relevant
+ethical requirements regarding independence, and to
+communicate with them all relationships and other
+matters that may reasonably be thought to bear on our
+independence, and where applicable, related safeguards.
+by us.
+Others
+Subsidiaries
+Subsidiaries
+8,021.0
+4,404.0
+8,021.0
+4,404.0
+73.4
+62.5
+73.4
+12,191.8
+BASIS FOR OPINION
+We have audited the accompanying consolidated Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited (hereinafter referred to as "the Holding Company"),
+its subsidiaries (the Holding Company and its subsidiaries
+together referred to as "the Group"), its associates and joint
+venture comprising of the consolidated Balance sheet as at
+March 31, 2021, the consolidated Statement of Profit and
+Loss, including Statement of other comprehensive income,
+the consolidated Cash Flow Statement and the consolidated
+Statement of Changes in Equity for the year then ended,
+and notes to the consolidated Ind AS financial statements,
+including a summary of significant accounting policies and
+other explanatory information (hereinafter referred to as
+"the consolidated Ind AS financial statements").
+OPINION
+REPORT ON THE AUDIT OF THE CONSOLIDATED IND
+AS FINANCIAL STATEMENTS
+Financial Statements
+Standalone Accounts | Consolidated Accounts
+To the Members of Sun Pharmaceutical Industries Limited
+Independent Auditor's Report
+170
+In our opinion and to the best of our information and
+according to the explanations given to us and based on
+the consideration of reports of other auditors on separate
+financial statements and on the other financial information
+of the subsidiaries, associates and joint venture, the
+aforesaid consolidated Ind AS financial statements give
+the information required by the Companies Act, 2013, as
+amended ("the Act") in the manner so required and give
+a true and fair view in conformity with the accounting
+principles generally accepted in India, of the consolidated
+state of affairs of the Group, its associates and joint venture
+as at March 31, 2021, their consolidated profit including
+other comprehensive income, their consolidated cash flows
+and the consolidated statement of changes in equity for the
+year ended on that date.
+44,427.3
+12,191.8
+44,427.3
+0.1
+Key management personnel
+2.2
+0.1
+Others
+155.1
+124.3
+Loan taken
+Subsidiaries
+Loan given
+Subsidiaries
+Security Deposit given
+Subsidiaries
+Security Deposit Received
+Subsidiaries
+Other liabilities
+Subsidiaries
+Provision includes obligation arising from a supply contract to Sun Laboratories FZE, a wholly owned subsidiary of the
+Company amounting to ₹12,027.9 Million (March 31, 2020: ₹19,776.8 Million).
+The sales to and purchases from related parties are made on an arm's length basis. Outstanding trade balances at the
+year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any
+related party receivables or payables. As on year ended March 31, 2021, the Company has recorded impairment of
+receivables relating to amounts owed by related parties(wholly owned subsidiaries) amounting to ₹59.9 Million (March
+31, 2020: 59.9 Million).
+b)
+a)
+211.2
+Advance (includes capital and supply of goods/services)
+4,015.1
+1,758.6
+Subsidiaries
+4,015.1
+1,758.6
+Advance from customers
+18,537.9
+18,748.2
+18,537.9
+18,748.2
+0.1
+0.1
+0.1
+0.1
+62.5
+Subsidiaries
+Joint Venture
+418.7
+211.2
+1,803.1
+1,920.8
+Subsidiaries
+1,803.1
+1,920.8
+Lease liabilities
+19,776.8
+12,027.9
+Subsidiaries
+19,776.8
+12,027.9
+Provisions
+18.4
+Subsidiaries
+18.4
+Accrued Interest income on loans and advances
+211.2
+Associates
+Interest expense
+8,266.3
+Subsidiaries
+383.4
+9,258.3
+418.3
+469.3
+418.3
+427.6
+41.7
+9,258.3
+2,156.6
+2,156.6
+564.5
+34.8
+36.3
+12.1
+13.5
+22.7
+564.5
+383.4
+Year ended
+March 31, 2020
+March 31, 2021
+Rent income
+Subsidiaries
+Others
+Rent expense / Payment towards Lease Liabilities
+Donation
+Subsidiaries
+Others
+Provision / (reversal) in respect of losses of a subsidiary
+Subsidiaries
+Remuneration
+Key management personnel (#)
+Relatives of Key management personnel
+(*) Includes income recognised from profit sharing supply arrangements.
+Financial Statements
+Standalone Accounts
+ANNEXURE "A"
+* in Million
+Year ended
+22.8
+263.4
+177.1
+263.4
+Receivables
+As at
+March 31, 2021
+58,959.4
+ANNEXURE "A"
+* in Million
+As at
+March 31, 2020
+57,125.1
+57,123.6
+58,929.1
+Key management personnel
+17.4
+Others
+12.9
+1.5
+Payable
+11,055.6
+8,390.8
+Balance outstanding as at the end of the year
+10,898.3
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+Notes to the Standalone Financial Statements
+177.1
+100.0
+100.0
+(2,502.9)
+(2,502.9)
+165.4
+200.5
+130.4
+171.4
+35.0
+29.1
+(#) Mr. Sudhir Vrundavandas Valia stepped down from the position of Whole-time Director of the Company with effect from May 29, 2019.
+Accordingly, his remuneration for the FY 2019-20 included PL settlement of 15.1 Million and Gratuity of *38.9 Million. He continues to be a Non-
+Promoter, Non-Executive and Non-Independent Director of the Company.
+Key Management Personnel (KMP) and Relatives of KMP who are under the employment of the Company are entitled to post employment
+benefits and other long term employee benefits recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee
+benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above and there is no Share-based payments
+to Key Management Personnel of Company.
+Annual Report 2020-21
+169
+Sun Pharmaceutical Industries Limited
+CARE
+for the year ended March 31, 2021
+629.9
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+(b) Capital work-in-progress
+(i) Borrowings
+(ii) Trade payables
+(iii) Other financial liabilities
+(b) Other current liabilities
+(c) Provisions
+(d) Current tax liabilities (Net)
+Total current liabilities
+Total liabilities
+TOTAL EQUITY AND LIABILITIES
+The accompanying notes are an integral part of the consolidated financial statements.
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Date: May 27, 2021
+Annual Report 2020-21
+27
+29
+2 2222
+24,449.0
+55,493.8
+39,736.6
+35,836.4
+42,373.5
+18,887.3
+7,279.9
+(a) Financial liabilities
+6,462.9
+(2) Current liabilities
+445.1
+7,519.3
+20,412.7
+20
+462,228.5
+450,245.2
+Equity attributable to the equity shareholders of the company
+464,627.8
+452,644.5
+Non-controlling interests
+71
+30,170.5
+38,602.4
+Total equity
+494,798.3
+491,246.9
+Liabilities
+(1) Non-current liabilities
+(a) Financial liabilities
+(i) Borrowings
+(ii) Other financial liabilities
+(b) Provisions
+(c) Deferred tax liabilities (Net)
+(d) Other non-current liabilities
+22202
+21
+23
+8,981.3
+195.8
+3,271.2
+20,289.2
+424.1
+5,110.0
+50
+24
+Total non-current liabilities
+581.4
+7,808.7
+34,213.4
+45,826.5
+38,363.6
+1,790.8
+6,359.8
+334,734.8
+Cost of materials consumed
+32
+61,531.3
+55,152.3
+Purchases of stock-in-trade
+31,751.7
+34,143.7
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+33
+(6,382.2)
+3,008.5
+Employee benefits expense
+34
+68,622.3
+63,623.5
+Finance costs
+35
+1,414.3
+3,027.3
+Depreciation and amortisation expense
+3 (A & B)
+20,799.5
+20,527.8
+Other expenses
+36
+94,781.1
+102,705.5
+Net (gain) loss on foreign currency transactions
+343,336.6
+8,355.2
+31
+328,375.0
+2,020.3
+161,456.3
+157,064.3
+181,869.0
+191,277.7
+676,667.3
+682,524.6
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+(DIN : 00005588)
+SUNIL R. AJMERA
+Company Secretary
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+(b) Other equity
+181
+CARE
+Consolidated Statement of Profit and Loss
+for the year ended March 31, 2021
+Particulars
+(I) Revenue from operations
+(II) Other income
+(III) Total income (I+II)
+(IV)Expenses
+Notes
+Year ended
+March 31, 2021
+* in Million
+Year ended
+March 31, 2020
+30
+334,981.4
+Sun Pharmaceutical Industries Limited
+2,399.3
+2,399.3
+19
+6,589.1
+47
+62,876.4
+64,814.6
+(d) Other intangible assets
+3B
+50,303.5
+57,980.2
+(e) Intangible assets under development
+6,303.1
+5,614.3
+(f) Investment in associates
+(g) Investment in joint venture
+45
+2,327.3
+2,153.9
+278.3
+275.7
+(h) Financial assets
+(i) Investments
+(ii) Loans
+17
+6
+62,218.3
+7.1
+(iii) Other financial assets
+8
+957.8
+(i) Deferred tax assets (Net)
+50
+9,365.2
+105,674.3
+102,349.9
+3A(I) & (II)
+Financial Statements
+Consolidated Accounts
+directors of the company; and (3) provide reasonable
+assurance regarding prevention or timely detection
+of unauthorised acquisition, use, or disposition of the
+company's assets that could have a material effect on the
+financial statements.
+INHERENT LIMITATIONS OF INTERNAL FINANCIAL
+CONTROLS OVER FINANCIAL REPORTING WITH
+REFERENCE TO THESE CONSOLIDATED IND AS
+FINANCIAL STATEMENTS
+Because of the inherent limitations of internal financial
+controls over financial reporting with reference to these
+consolidated Ind AS financial statements, including the
+possibility of collusion or improper management override
+of controls, material misstatements due to error or fraud
+may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial
+reporting with reference to these consolidated Ind AS
+financial statements to future periods are subject to the risk
+that the internal financial control over financial reporting
+with reference to these consolidated Ind AS financial
+statements may become inadequate because of changes
+in conditions, or that the degree of compliance with the
+policies or procedures may deteriorate.
+OPINION
+In our opinion, the Holding Company and its subsidiary
+companies, which are companies incorporated in India,
+have, maintained in all material respects, adequate internal
+financial controls over financial reporting with reference
+to these consolidated Ind AS financial statements and
+such internal financial controls over financial reporting
+with reference to these consolidated Ind AS financial
+statements were operating effectively as at March 31,
+2021, based on the internal control over financial reporting
+criteria established by the Holding Company considering
+the essential components of internal control stated in the
+Guidance Note on Audit of Internal Financial Controls Over
+Financial Reporting issued by the Institute of Chartered
+Accountants of India.
+OTHER MATTERS
+Our report under Section 143(3)(i) of the Act on the
+adequacy and operating effectiveness of the internal
+financial controls over financial reporting with reference
+to these consolidated Ind AS financial statements of the
+Holding Company, insofar as it relates to 1 subsidiary
+company, which is company incorporated in India, is based
+on the corresponding reports of the auditors of such
+subsidiary incorporated in India.
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+per Paul Alvares
+Partner
+Membership Number: 105754
+UDIN: 21105754AAAACV8743
+35,564.4
+Place of Signature: Pune
+Date: May 27, 2021
+179
+Sun Pharmaceutical Industries Limited
+CARE
+Consolidated Balance Sheet
+as at March 31, 2021
+Particulars
+ASSETS
+(1) Non-current assets
+(a) Property, plant and equipment
+(c) Goodwill (Net)
+Notes
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2020
+Annual Report 2020-21
+(236.5)
+50,027.9
+7.9
+1,048.8
+31,752.9
+9
+1,483.8
+(vi) Other financial assets
+17
+8,759.3
+9,293.4
+(c) Other current assets
+18
+18,761.5
+18,953.0
+Total current assets
+304,420.8
+316,541.6
+TOTAL ASSETS
+676,667.3
+682,524.6
+180
+Consolidated Balance Sheet
+as at March 31, 2021
+Particulars
+EQUITY AND LIABILITIES
+Financial Statements
+Consolidated Accounts
+* in Million
+As at
+Notes
+March 31, 2021
+As at
+March 31, 2020
+Equity
+(a) Equity share capital
+560.1
+16
+(v) Loans
+8,109.4
+34,327.8
+33,842.5
+(k) Other non-current assets
+10
+5,367.4
+6,200.9
+Total non-current assets
+372,246.5
+365,983.0
+(2) Current assets
+(a) Inventories
+(b) Financial assets
+11
+89,970.2
+(j) Income tax assets (Net)
+78,749.9
+12
+31,300.6
+48,973.6
+(ii) Trade receivables
+13
+90,614.0
+94,212.4
+(iii) Cash and cash equivalents
+14
+62,730.3
+56,766.1
+(iv) Bank balances other than (iii) above
+15
+1,724.8
+(i) Investments
+(156.1)
+Total expenses (IV)
+272,281.5
+Balance as at March 31, 2019 2,399.3 3,681.7 11,932.9
+Profit for the year
+43.8
+7.5 207.5 35,621.0 333,301.9
+37,649.3
+(11.2)
+1,632.9 24,936.7
+336.6
+company
+414,090.6 33,135.4 447,226.0
+37,649.3 4,070.3 41,719.6
+Exchange difference arising
+on translation of foreign
+operations/net investment in
+foreign operations, net of tax
+Other comprehensive income
+for the year, net of tax
+Total comprehensive income
+for the year
+Payment of dividend
+Dividend distribution tax
+Buy-back purchase of equity
+shares by overseas subsidiaries
+company
+Expenditure on buy-back
+of equity shares by parent
+company (Refer note 64)
+Transfer from surplus in
+(58.8)
+20,862.3
+20,862.3
+2,928.2 23,790.5
+* (272.0)
+(522.4)
+hedges
+reserve
+Total
+Non-
+controlling
+interests
+12.1
+15.7
+12.1
+15.7
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+SUNIL R. AJMERA
+Company Secretary
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+183
+184
+Consolidated Statement of Changes in Equity
+(883.0)
+for the year ended March 31, 2021
+Other equity
+Reserves and surplus
+Other comprehensive income (OCI)
+Attributable
+Particulars
+Equity
+share
+capital
+Capital Securities Amalgamation
+reserve premium
+Capital
+redemption
+reserve
+Legal General Retained
+reserve reserve earnings
+reserve
+Debt
+Equity Foreign Effective
+instrument instrument currency portion of
+through through translation cash flow
+OCI
+OCI
+to owners
+of parent
+* in Million
+Annual Report 2020-21
+(765.8) (2,443.2)
+37,377.3
+3,141.2
+952.6
+4,969.7
+225.4 5,195.1
+28,985.5
+928.6
+3,141.2 (5,874.5) 952.6 28,133.4 (6,870.2) 21,263.2
+(559.5) (1,294.7) (1,854.2)
+(267.0) (15,857.6)
+(15,590.6)
+(15,590.6)
+(559.5)
+Total
+Non-
+controlling
+interests
+to owners
+of parent
+company
+Foreign Effective
+currency portion of
+translation cash flow
+reserve hedges
+OCI
+Debt
+Equity
+Legal General Retained instrument instrument
+reserve reserve earnings through through
+OCI
+reserve
+reserve
+Attributable
+Other comprehensive income (OCI)
+Reserves and surplus
+Capital
+redemption
+Capital Securities Amalgamation
+reserve premium
+share
+capital
+Equity
+Other equity
+in Million
+Particulars
+for the year ended March 31, 2021
+* (52.7) 928.6
+Total comprehensive income
+for the year
+Other comprehensive income
+for the year, net of tax
+foreign operations, net of tax
+(522.4)
+(883.0) 20,862.3 (765.8)
+56,068.4 6,859.5 62,927.9
+(13,789.6)
+(2,834.5)
+(13,789.6)
+(2,834.5)
+(831.6)
+44.5 (13,745.1)
+(2,834.5)
+(831.6) (1,437.0) (2,268.6)
+23.0
+(23.0)
+(58.8)
+(58.8)
+Sun Pharmaceutical Industries Limited
+CARE
+(139.0) (2,582.2)
+consolidated statement of
+law of overseas subsidiaries
+Balance as at March 31, 2020 2,399.3 3,681.7 11,874.1
+43.8
+7.5
+Profit for the year
+230.5 35,621.0 353,200.5
+29,038.2
+(533.6)
+749.9 45,799.0
+(429.2) 452,644.5 38,602.4 491,246.9
+Exchange difference arising
+(5,874.5)
+29,038.2 (6,314.7) 22,723.5
+(5,874.5) (780.9) (6,655.4)
+on translation of foreign
+operations/net investment in
+profit and loss as per the local
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+Date: May 27, 2021
+Partner
+(XII) Profit for the year before non-controlling interests (IX+X+XI)
+22,723.5
+41,719.6
+(XIII) Non-controlling interests
+71
+(6,314.7)
+4,070.3
+(XIV) Profit for the year attributable to owners of the company (XII-XIII)
+29,038.2
+37,649.3
+(XV) Other comprehensive income
+(A) Items that will not be reclassified to profit or loss
+(a) Gain/(loss) on re-measurements of the defined benefit plans
+Income tax on above
+(81.9)
+(417.7)
+29.2
+145.9
+(52.7)
+(271.8)
+(b) Gain/(loss) on equity instruments measured at fair value through other
+comprehensive income
+3,315.8
+(896.4)
+Income tax on above
+(174.6)
+13.5
+3,141.2
+(882.9)
+Total (A)
+3,088.5
+(10.0)
+12.2
+(XI) Share of profit/(loss) of joint venture (net of tax)
+(138.3)
+282,032.5
+(V) Profit before exceptional items and tax (III-IV)
+71,055.1
+52,702.3
+(VI) Exceptional items
+61
+43,061.4
+2,606.4
+(VII) Profit before tax (V-VI)
+27,993.7
+50,095.9
+(VIII) Tax expense/(credit)
+Current tax
+Deferred tax
+(1,154.7)
+9,573.0
+(331.0)
+(4,973.4)
+Deferred tax-exceptional
+61
+(4,095.1)
+Total tax expense (VIII)
+49
+5,146.9
+8,228.0
+(IX) Profit for the year before share of profit/(loss) of associates and joint
+venture (VII-VIII)
+22,846.8
+41,867.9
+(X) Share of profit/(loss) of associates (net of tax)
+(135.5)
+13,201.4
+Membership No.: 105754
+182
+for the year ended March 31, 2021
+(1,460.3)
+21,208.3
+(XVI) Total comprehensive income for the year (XII+XV)
+21,263.2
+62,927.9
+Other comprehensive income for the year attributable to:
+- Owners of the company
+(904.8)
+18,419.1
+Total comprehensive income for the year attributable to:
+- Non-controlling interests
+- Owners of the company
+- Non-controlling interests
+Earnings per equity share (face value per equity share - *1)
+(555.5)
+2,789.2
+28,133.4
+56,068.4
+(6,870.2)
+6,859.5
+51
+Basic (in)
+Diluted (in)
+The accompanying notes are an integral part of the consolidated financial statements.
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+(XV) Total other comprehensive income (A + B)
+22,363.0
+(4,548.8)
+(6,259.0)
+Financial Statements
+Consolidated Accounts
+Particulars
+(B) Items that may be reclassified to profit or loss
+(a) Gain/(loss) on debt instruments measured at fair value through other
+comprehensive income
+Income tax on above
+(b) Effective portion of gain/(loss) on designated portion of hedging
+instruments in a cash flow hedge
+Income tax on above
+Year ended
+Notes
+March 31, 2021
+March 31, 2020
+* in Million
+Year ended
+Consolidated Statement of Profit and Loss
+1,172.5
+(80.3)
+44.8
+1,092.2
+1,451.3
+(619.4)
+(1,184.4)
+(436.9)
+376.3
+1,014.4
+(808.1)
+(c) Exchange differences in translating the financial statements of foreign
+operations
+(8,013.1)
+30,049.5
+(d) Exchange differences on translation of net investment in foreign operations
+Total (B)
+1,357.7
+(664.2)
+Consolidated Statement of Changes in Equity
+Annual Report 2020-21
+3,215.2
+(1,751.9)
+1,166.2
+(3,740.5)
+937.3
+2,567.7
+(10,802.9)
+70,021.3
+46,092.2
+227.7
+(52.2)
+(122.8)
+1,068.1
+43.1
+B. Cash flow from investing activities
+Net cash generated from operating activities (A)
+Income tax paid (net of refund)
+Cash generated from operations
+(138.2)
+(246.7)
+(260.0)
+(0.4)
+Provision / write off/(reversal) for doubtful trade receivables / advances
+Sundry balances written back, net
+Effect of exchange rate changes
+3,814.6
+Operating profit before working capital changes
+(Increase) Decrease in inventories
+(Increase) / Decrease in trade receivables
+(Increase) / Decrease in other assets
+Increase (Decrease) in trade payables
+Increase (Decrease) in other liabilities
+Increase (Decrease) in provisions
+Movements in working capital:
+(571.9)
+(2,101.1)
+3,124.2
+717.7
+Interest received
+(616.0)
+Net cash outflow on acquisition of subsidiary
+8,192.9
+4,880.8
+(9,694.5)
+(2,818.7)
+318,936.3
+197,088.0
+Fixed deposits / margin money matured
+Fixed deposits / margin money placed
+Bank balances not considered as cash and cash equivalents
+Proceeds from sale of investments
+1,875.4
+(334,453.9)
+(185,417.4)
+882.2
+5,542.2
+10,887.1
+71,733.1
+79,006.8
+(10,029.4)
+(13,459.1)
+24,983.5
+61,703.7
+Payments for purchase of property, plant and equipment (including capital work-in-
+progress, other intangible assets and intangible assets under development)
+(11,701.3)
+(15,420.0)
+971.0
+920.3
+(191.3)
+Loans/inter corporate deposits received back / matured
+Purchase of investments (includes investment in associates)
+65,547.7
+(2,197.6)
+Net gain arising on financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net (gain)/ loss on sale of financial assets measured at fair value through other
+comprehensive income
+(561.8)
+Company Secretary
+SUNIL R. AJMERA
+Sun Pharmaceutical Industries Limited
+For and on behalf of the Board of Directors of
+3,891.1 39,924.5 523.4 464,627.8 30,170.5 494,798.3
+185
+Date: May 27, 2021
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No.: 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the consolidated financial statements.
+* Represents re-measurements of the defined benefit plans
+395.0
+Payment of dividend
+Buy-back/purchase of equity
+shares by overseas subsidiaries
+company
+Transfer from surplus in
+consolidated statement of
+DILIP S. SHANGHVI
+profit and loss as per the local
+Balance as at March 31, 2021
+55.0
+(55.0)
+2,399.3 3,681.7 11,874.1
+43.8
+7.5 285.5 35,621.0 365,980.9
+law of overseas subsidiaries
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+Adjustments for:
+Depreciation and amortisation expense
+20,799.5
+Net (gain) / loss on sale / write off / impairment of property, plant and equipment and
+other intangible assets
+16.7
+20,527.8
+53.7
+50,095.9
+Finance costs
+3,027.3
+Interest income
+(2,111.3)
+(3,546.2)
+Dividend income on investments
+(2,560.4)
+1,414.3
+3,384.6
+27,993.7
+Year ended
+March 31, 2020
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+Financial Statements
+Consolidated Accounts
+Sun Pharmaceutical Industries Limited
+Profit before tax
+CARE
+for the year ended March 31, 2021
+Particulars
+A. Cash flow from operating activities
+* in Million
+Year ended
+March 31, 2021
+Consolidated Cash Flow Statement
+Dividend received
+Proceeds from disposal of property, plant and equipment and other intangible assets
+Loans / inter corporate deposits given / placed
+561.8
+Change in financial liability/ asset arising from financing activities
+Particulars
+1,375.9
+Changes from financing cash flows
+The effect of changes in foreign exchange rates
+Other changes
+# For movement of lease liabilities (Refer note 54)
+Changes in fair value
+The accompanying notes are an integral part of the consolidated financial statements.
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Closing balance
+Partner
+Closing balance
+Other changes
+152.7
+14.6
+56,766.1
+Annual Report 2020-21
+187
+Sun Pharmaceutical Industries Limited
+Changes in fair value
+CARE
+for the year ended March 31, 2021
+Change in financial liability/ asset arising from financing activities
+Particulars
+Opening balance
+Changes from financing cash flows
+The effect of changes in foreign exchange rates
+Consolidated Cash Flow Statement
+18,936.0
+37,662.8
+Membership No.: 105754
+188
+Derivatives, net
+[(liabilities)/asset]
+(29,790.0)
+94.8
+(265.4)
+5,590.1
+50.7
+(1,235.2)
+105,143.6
+(235.1)
+(355.0)
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+(DIN : 00005588)
+SUNIL R. AJMERA
+Company Secretary
+79,708.5
+Date: May 27, 2021
+Borrowings
+* in Million
+in Million
+Year ended March 31, 2021
+Borrowings #
+79,708.5
+Derivatives, net
+[(liabilities) / asset]
+(355.0)
+Year ended March 31, 2020
+(43,718.5)
+(585.5)
+41.1
+(169.6)
+(106.2)
+35,234.9
+(299.5)
+120.6
+62,730.3
+Opening balance
+As at
+March 31, 2020
+(1,442.5)
+(4,250.0)
+4,250.0
+2,189.0
+(1,726.4)
+(2,124.8)
+(1,854.2)
+105,515.7
+(138,934.6)
+(109,198.7)
+66,028.7
+Dividend payment to non-controlling interests
+Finance costs
+Refund from /(transfer to) escrow account for buy-back (Refer note 64)
+Net increase / (decrease) in working capital demand loans
+held by non-controlling interests of subsidiaries
+Payment for buy-back of equity shares of parent company and buy-back of equity shares
+Repayment of borrowings @
+Net cash from (used in) investing activities (B)
+5,362.2
+(25,888.4)
+186
+Consolidated Cash Flow Statement
+for the year ended March 31, 2021
+(2,718.9)
+Particulars
+Year ended
+March 31, 2021
+* in Million
+28,097.7
+34,327.7
+290.8
+14.1
+C. Cash flow from financing activities
+Proceeds from borrowings
+Financial Statements
+Consolidated Accounts
+(267.0)
+Year ended
+March 31, 2020
+Dividend paid
+62,730.3
+56,766.1
+@ includes payment of lease obligation.
+Notes:
+Cash and cash equivalents comprises of
+Particulars
+Cash and cash equivalents at the end of the year
+Balances with banks
+Cheques, drafts on hand
+Cash on hand
+Cash and cash equivalents (Refer note 14)
+As at
+March 31, 2021
+* in Million
+(201.4)
+In deposit accounts with original maturity less than 3 months
+3,635.2
+In current accounts
+Effect of exchange differences on restatement of foreign currency cash and cash
+equivalents
+Dividend distribution tax
+(1,296.9)
+(15,594.7)
+(13,791.9)
+(2,834.5)
+(59,804.8)
+(57,151.4)
+Net cash used in financing activities (C)
+7,261.1
+(17,492.1)
+Cash and cash equivalents at the beginning of the year
+56,766.1
+70,623.0
+Net (decrease) / increase in cash and cash equivalents (A+B+C)
+1
+(US$ Billion)
+1.5-4.5%
+2.5-5.5%
+US¹
+The US continues to be the largest pharmaceutical
+market in the world. It recorded ~4% CAGR growth
+between 2016-20 and the market is expected to grow
+at 2-5% CAGR to US$605-645 Billion by 2025. Rising
+discounts and rebates are expected to slow spending
+growth over time. In addition, ongoing market
+dynamics around new launches, impact of patent
+expiries, new generics and biosimilar competition will
+continue to act as balancing factors over the next five
+years.
+Chart 2 US Pharmaceutical Spending and Growth¹
+527.8
+605-635
+Annual Report 2020-21
+2021-2025
+CAGR
+2016-2020
+2020
+2-5%
+CAGR
+2025
+13
+125-155
+1130-1160
+4.4%
+14
+4.2%
+3.8%
+28-32
+Total Developed Markets
+(0.2)%
+CAGR
+2016-2020
+75-95
+(2)-1%
+Canada
+22.8
+4.8%
+2-5%
+South Korea
+16.2
+6.8%
+18-22
+4.5-7.5%
+Australia
+11.8
+3.3%
+13-17
+1-4%
+Other Developed Markets
+112.3
+4.2%
+959.5
+2020
+15.0
+Top 5 Western European
+Markets (WE5)¹
+2020
+China
+134.4
+Brazil
+28.7
+2016-2020
+CAGR
+4.9%
+10.7%
+2025
+170-200
+43-47
+2021-2025
+CAGR
+4.5-7.5%
+7.5-10.5%
+Region/Country
+India
+9.5%
+28-32
+7.5-10.5%
+Russia
+17.5
+10.8%
+33-37
+11-14%
+88.2
+22.0
+Table 4 Pharmerging Markets - Pharmaceutical Spending and Growth (US$ Billion)¹
+Relatively high rates of growth in pharmaceutical spending
+in these markets belie the relatively low levels of per capita
+medicine use. However, pharmaceutical consumption
+continues to increase in these countries driven by growing
+incidence of chronic ailments, increased healthcare
+awareness and rising medical insurance coverage.
+outperformed by the smaller pharmerging markets, which
+are expected to grow at the rate of 8.5-11.5% during the
+same period.
+Pharmaceutical spending in the top five Western
+European Markets (WE5) markets is projected to grow
+at about 2-5% CAGR to US$215-245 Billion by 2025.
+Increasing consumption of generics and a maturing
+biosimilars market, coupled with future patent expiries
+will lead to muted overall growth.
+Japan¹
+Japan, the third largest global market, is projected to
+grow at about (2)-1% CAGR to US$75-95 Billion by
+2025. Periodic government mandated price-cuts and
+increasing shift to generics will lead to a tepid growth.
+Going forward, rising spending on patent-protected
+original brands coupled with regulatory policies will
+be the key dynamics impacting overall pharmaceutical
+spending.
+180.4
+215-245
+Chart 3 WE5 Pharmaceutical Spending and Growth¹
+(US$ Billion)
+Chart 4 Japan Pharmaceutical Spending and Growth¹
+(US$ Billion)
+2-5%
+CAGR
+2021-2025
+2025
+-0.2%
+CAGR
+2016-2020
+2020
+88.2
+(2)-1%
+CAGR
+2021-2025
+PHARMERGING MARKETS¹
+Pharmerging markets reported 7.4% CAGR in
+pharmaceutical spending between 2016-20 to reach
+US$290.8 Billion in 2020. These markets contributed
+to ~23% of the overall global spending in 2020 and are
+expected to account for ~26-27% of spending by 2025.
+Spending across major pharmerging markets is expected
+to grow at a CAGR of 7-10% through 2025, driven by the
+largest countries – China, Brazil, India and Russia - but
+Sun Pharmaceutical Industries Limited
+CARE
+3.9%
+Japan
+28-32
+14
+17
+ཚ ་ སི ་ ༀ ༄ ་ ་ ་། ། ། ་་ ཚོ ་ ༀ ཕི ༀ ་ ། ། ། སྐྱ ཐཱ ཧི ཙ ི ཋ ཚེ ཡི
+(%)
+ACTIVE PHARMACEUTICAL INGREDIENTS (API)²
+The market size of global active pharmaceutical ingredients
+was valued at US$187.7 Billion in 2020 and is expected to
+grow at a CAGR of 6.6% between 2021-28. Growth drivers
+include advancements in API manufacturing and the rising
+prevalence of chronic diseases. Favourable government
+policies for API production, along with changes in
+geopolitical dynamics, are expected to further drive market
+growth.
+The global API market is undergoing immense changes due
+to supply chain disruptions caused by COVID-19 in early
+2020. There is an increasing trend around diversification
+of the supply chain, with India being viewed as one of the
+critical suppliers of API for the future.
+Traditionally, the API market has been dominated by
+drugs in categories such as, anti-infectives, diabetes,
+cardiovascular, analgesics, and pain management. However,
+driven by emerging R&D trends, the demand is shifting
+toward the development of complex APIs used in novel
+formulations, targeting niche therapeutic areas.
+CONSUMER HEALTHCARE³
+The needs of health-conscious consumers are fast evolving
+in keeping with their lifestyles and behavioural patterns,
+leading to growing consumption of consumer healthcare
+products. The global over-the-counter (OTC) market was
+valued at US$190 Billion in 2020, recording 5% Y-0-Y
+growth. Cold & Flu segment witnessed a decline while the
+Vitamins, Minerals & Supplements (VMS) category grew
+substantially, driven primarily by increased consumption of
+such products during the COVID-19 outbreak.
+COVID-19 accelerated three key trends (1) superior
+self-care, (2) focus on mental health and (3) consumer
+convenience. Global consumer healthcare companies
+are educating consumers, reviewing product portfolios,
+increasing focus on digital channels and improving
+marketing capabilities to enhance their competitive
+advantage.
+16
+Statutory Reports
+Management Discussion and Analysis
+WORLD OF SUN PHARMA
+Sun Pharmaceutical Industries Limited, and its subsidiaries
+together constitute the universe of Sun Pharma. It is a
+leading specialty generics pharmaceutical company with
+a strong presence in India and the US markets. It is also
+amongst one of the leading Indian pharma companies in
+emerging markets. The Company, along with its subsidiaries
+and associates, continues to service its customers across
+geographies, on the strength of its innovative R&D efforts,
+efficient and low-cost operations and culturally diverse
+skilled human resources.
+The Company has manufacturing capabilities for a variety
+of dosage forms, such as injectables, sprays, ointments,
+creams, liquids, hormones, drug delivery systems, tablets
+and capsules. It aims to deliver quality products at
+affordable prices, and over the years, has earned the trust
+of patients and medical professionals across its key markets.
+Sun Pharma is growing its portfolio of specialty products,
+branded generics and pure generics across 100+ countries
+globally. In-depth Research & Development (R&D) and
+use of high-end technology are integral to the Company's
+progress. The Company has always focused on both
+organic and inorganic growth, with proactive acquisition of
+businesses and in-licensing of specialty molecules.
+Prominence in Key Markets
+4
+10
+Pharmerging
+87
+Other Developed
+Rising public healthcare
+spending
+Increasing patient
+awareness
+Lifestyle changes and
+food habits leading to
+increased incidence of
+chronic ailments
+Growing popularity of
+over-the-counter drugs
+Expanding insurance
+coverage across the
+income pyramid - led
+by both government
+initiatives as well as
+private insurers
+Increasing access to
+modern and innovative
+medicines
+SPECIALTY MEDICINES1
+Global pharmaceutical spending on specialty innovative
+products has consistently increased over the last ten
+years. Specialty medicines treat chronic, complex or rare
+diseases. These include biologic drugs for various chronic
+ailments, immunology drugs, medicines developed for
+orphan diseases and the latest generation gene and cell
+therapies. These highly innovative specialty products made
+th
+a significant difference in medical outcomes for patients
+over the last ten years.
+Annual Report 2020-21
+15
+18-22
+in the future as well. Spending on specialty products rose
+within pharmerging markets also, but has been constrained
+by higher pricing and limited purchasing power. The ten
+largest developed countries and other high and upper
+middle-income countries are witnessing consistent increase
+in the share of spending on specialty medicines. These
+products are expected to contribute to nearly half of global
+spending in 2025 and almost 60% of the total spending in
+developed markets.
+Chart 6 Share of Specialty Medicines in Overall Pharmaceutical Spending - By Market¹
+Global
+38
+Top 10 Developed
+The share of specialty products in overall global
+pharmaceutical spending increased from 21% in 2010 to
+~38% by 2020. It is expected to further rise to 45% by
+2025. This growth has been driven mainly by developed
+markets in the past and this trend is expected to continue
+Rapid urbanisation and
+improving affordability
+Largest specialty generic
+No. 1
+2019 Acquired Pola Pharma in Japan
+Rationale
+Commercialisation of llumya in the Middle East & North Africa (MENA)
+markets.
+Potential treatment for atopic dermatitis, psoriasis and other auto-immune
+disorders across the globe
+Expands nephrology portfolio in India to treat anaemia in hemodialysis
+patients
+Access to oncology market in Mainland China
+Access to Greater China market
+Foray into the Japanese dermatology market
+Annual Report 2020-21
+17
+Sun Pharmaceutical Industries Limited
+CARE
+Year Event
+Rationale
+2016 Acquired global rights for Cequa and Odomzo Enhance specialty pipeline across the globe
+2016 Acquired Biosintez
+2016 Licencing agreement with Almirall for
+Tildrakizumab for psoriasis
+2016 Acquired 14 brands from Novartis
+2019 Licencing agreement with CMS for
+Tildrakizumab, Cequa and 8 generic
+products
+2019 Licencing agreement with AstraZeneca UK
+for ready-to-use infusion oncology products
+In-licenced Triferic brand from Rockwell
+Medical Inc. (USA)
+2020
+Pharma company
+in India5
+th
+10"
+Largest generic pharma
+company in the US1
+Among the
+Largest
+Indian pharma companies in
+emerging markets
+100+
+Countries in terms of
+market reach
+pharma company globally4
+Table 5 Key Milestones
+Global manufacturing
+sites across 6 continents
+37,000+
+50+
+Global employee strength
+Employee nationalities
+Year
+Event
+2020 Exclusive licencing agreement with
+Hikma for llumya
+2020 Licencing agreement with SPARC for
+SCD-044
+44
+Growth Enablers
+28-32
+2025
+Forecast
+10
+Global Market
+Other Markets
+Pharmerging Markets
+Developed Markets
+Regions
+Table 1 Global Pharmaceutical Market (US$ Billion)¹
+0
+200
+400
+600
+800
+1,000
+1,200
+1,400
+1,600
+1,800
+Chart 1 Global Pharmaceutical Industry Growth: 2016-25
+(US$ Billion)1
+5-Year
+CAGR
+Overall - 3-6%
+Developed
+7-10%
+415-445
+7.4%
+290.8
+2-5%
+1130-1160
+2021-2025
+CAGR
+CAGR
+3.8%
+959.5
+The factors driving global medicine spending will be
+sustained growth in the pharmerging markets and the
+consistent launch of high-end specialty innovative products
+in developed markets. However, slower growth across
+developed markets due to losses of patent exclusivity for
+original brands will be an offsetting factor.
+2025
+2016-2020
+■Other Markets
+Pharmerging
+■Developed
+Markets - 3-6%
+Other
+Markets 7-10%
+Pharmerging
+Markets 2-5%
+2020
+The global pharmaceutical market size in 2020 was
+estimated at US$1.27 Trillion and is expected to expand
+at a compounded annual growth rate (CAGR) of 3-6% to
+US$1.6 Trillion by 2025 (this estimate excludes the
+additional spending on COVID-19 vaccines).
+The pharmaceutical industry is at the centre of the fight
+against the global COVID-19 pandemic and has contributed
+significantly in terms of supply of critical medications for
+treatment as well as in developing and manufacturing
+COVID-19 vaccines. The industry has ensured continuity of
+supplies of all other medicines to meet the needs of patients
+across the world.
+GLOBAL PHARMACEUTICAL INDUSTRY¹
+290.8
+7.4%
+415-445
+7-10%
+2025
+75-95
+Statutory Reports
+Management Discussion and Analysis
+India¹
+Total Pharmerging markets
+The Indian pharmaceutical industry is the world's
+third largest in terms of volume and ranks 11th in
+terms of value. It is among the faster-growing markets
+and the largest exporter of generic drugs by volume.
+Outside of the US, India has the largest number of
+USFDA-approved pharmaceutical manufacturing
+facilities. Over the last year, India played a crucial
+role in supplying therapeutic drugs for COVID-19
+treatment across the world and is also one of the key
+manufacturers of some of the COVID-19 vaccines.
+Going forward, India is likely to maintain a leadership
+position in the manufacture and supply of high-quality
+generic medicines as well as a major manufacturer of
+COVID-19 vaccines.
+Chart 5
+Indian Pharmaceutical Spending and Growth¹
+(US$ Billion)
+9.5%
+CAGR
+2016-2020
+21
+2020
+7.5-10.5%
+CAGR
+2021-2025
+The Indian pharmaceutical market recorded ~9.5%
+CAGR between 2016-20 to reach US$21 Billion. It is
+expected to grow at 7.5-10.5% CAGR to US$28-32
+Billion by 2025.
+2016 Distribution agreement with AstraZeneca
+8.5-11.5%
+9.6%
+Management Discussion and Analysis
+CARE
+Sun Pharmaceutical Industries Limited
+9
+Annual Report 2020-21
+Senior Vice-President,
+Head Global Supply Chain
+Sreenivas Rao
+CEO - Taro Pharmaceutical
+Industries Ltd.
+Uday Baldota
+120-150
+Executive Vice-President,
+Global Head - Quality
+Australia and New Zealand
+Western Europe,
+Hellen de Kloet
+Business Head -
+CEO India Business
+Kirti Ganorkar
+Whole-time Director and
+Director Corporate
+Development
+S. Kalyanasundaram
+Leadership Team
+Corporate Overview
+Jila Breeze
+1.5-4.5%
+2015 Acquired InSite Vision Inc.
+2015
+Expansion of access to
+healthcare, increase in per
+capita income and increasing
+insurance coverage in
+pharmerging markets
+have driven the overall
+growth in pharmaceutical
+consumption over the past
+decade, but slowing growth
+in these markets will bring
+down global growth over
+the next 5 years.
+Use of medicines in
+developed countries is
+typically higher than in
+pharmerging countries
+owing to higher income
+levels. This trend is
+expected to continue in
+future as well.
+Chronic medications
+to treat diseases like
+cardiovascular, diabetes,
+respiratory, and mental
+health conditions will
+continue to witness
+increasing demand
+globally driven by higher
+incidence of such diseases
+and changing lifestyles
+and food consumption.
+The global COVID-19
+pandemic has been
+a wake-up call to
+governments across the
+world. It may prompt them
+to increase healthcare
+budgets and encourage
+higher investments in
+pharmaceutical R&D and
+manufacturing.
+Over the next five
+years, an average of 54-63
+new active substances
+(NAS) are expected to be
+launched globally per year.
+In the next five years,
+the impact of patent
+expiries is estimated to
+be about US$166 Billion;
+while it will be partly
+offset by spending on
+associated generics and
+biosimilars.
+Oncology and
+immunology are the two
+leading global therapy
+areas that are forecast to
+grow at CAGR of 9-12%
+through 2025. Oncology
+attracts the largest
+spending with consistent
+launch of new treatments
+but the impact of
+biosimilars will slow down
+growth for some widely
+used therapies.
+Gene and cell therapy
+is another area, which
+is generating significant
+interest as far as
+future R&D efforts are
+concerned.
+Growth Enablers¹
+Demographics
+Rising per capita income
+and changing lifestyles and
+food preferences, among
+other demographic and
+epidemiological trends,
+are leading to a rapid rise
+in the incidence of Non-
+Communicable Diseases
+(NCDs) in pharmerging
+markets. Pharmaceutical
+spending in these markets
+will be focused on overall
+growth through control
+and prevention of NCDs,
+especially cardiovascular
+diseases, cancer and diabetes
+Innovation
+The launch of new and
+innovative products will be
+a key driver of growth in the
+developed pharmaceutical
+markets. Immunology drugs,
+biologics, oncology products,
+orphan drugs and cell and
+gene therapies will account
+for an increasing proportion
+of new launches in developed
+markets
+Macro-economics Access
+Sustained economic growth
+in the long term will remain
+a key catalyst for global
+pharmaceutical growth.
+There may be some near-
+term uncertainties due
+to the COVID-19 global
+pandemic. However, this
+may also be an opportunity
+for the pharmaceutical
+industry to increase its
+focus on R&D and thereby
+develop/launch COVID-19
+medicines and vaccines to
+reduce hospitalisations and
+mortality rates linked to
+COVID-19 infection
+Emerging Trends and the Way Forward¹
+Sun Pharmaceutical Industries Limited
+CARE
+11
+Annual Report 2020-21
+8-9
+11
+9-11
+1,265 1,580-1,610
+The global pharmaceutical
+industry witnessed delays in
+clinical trials for various molecules
+in 2020, with subsequent
+resumption of trials post the
+lifting of COVID-19 restrictions
+The outcome of COVID-19 on pharmaceutical
+spending across countries was diverse depending
+on the extent of viral infections and the responses
+by various governments to counter the infections
+Short-term stockpiling of chronic
+therapies was visible in the early
+stage of the pandemic, which
+subsequently evened out
+COVID-19
+vaccines were
+developed and
+commercialised
+at an astounding
+speed, which
+included
+vaccines
+To cope with rising demand,
+governments of most
+emerging economies will
+continue to seek expansion of
+their national health budgets,
+boosting further spending on
+healthcare
+developed by
+newer mRNA
+COVID-19
+impact on
+global medicine
+use
+New demand emerged for
+therapeutics used in treating
+COVID-19 symptoms
+(for example Remdesivir,
+Favipiravir, Tocil umab,
+Itolizumab, HCQS, certain
+anti-infectives, vitamins and
+anti-pyretics among others)
+Pharmerging markets
+saw some disruption
+(particularly in the early
+stages of the pandemic)
+but the impact was
+diverse across markets;
+overall volume
+growth was visible in
+pharmerging markets
+Developed
+markets
+witnessed
+a recovery
+towards the
+end of 2020;
+2021 may
+see rebound
+spending,
+including that
+for COVID-19
+vaccines
+technologies
+9
+While these growth drivers remain intact from a long-term perspective, the multiple waves of COVID-19 infections across
+economies and the resulting restrictions/lockdowns imposed by various governments may have implications, although it is
+difficult to estimate the actual impact of such restrictions.
+Statutory Reports
+Management Discussion and Analysis
+3.5-6.5%
+France
+36.3
+2.4%
+43-47
+1-4%
+Italy
+33.3
+4.2%
+38-42
+2-5%
+UK
+30.2
+5.3%
+38-42
+2.5-4.5%
+Spain
+25.7
+4.6%
+65-85
+5.3%
+54.9
+Germany
+DEVELOPED MARKETS¹
+The developed pharmaceutical markets grew at ~4% CAGR
+between 2016-20 and are estimated to grow at about
+1.5-4.5% CAGR to reach US$1,130-1,160 Billion by 2025.
+These markets accounted for ~76% of global pharmaceutical
+spending in 2020, and are estimated to account for ~71-72%
+of spending by 2025.
+New and specialty drug launches, offset by patent expiries
+and competition from generics and biosimilars, are
+expected to continue to be the main factors influencing
+medicine spending and growth in developed markets.
+Table 3 Developed Markets - Pharmaceutical Spending and Growth (US$ Billion)¹
+2016-2020
+Region/Country
+2020
+2025
+CAGR
+12
+2021-2025
+CAGR
+527.8
+4.2%
+605-635
+2-5%
+Top 5 Western European Markets (WE5)
+180.4
+4.4%
+215-245
+2-5%
+USA
+21-22
+17
+59-60
+The Company has, till date, commercialised 12 specialty
+products across different markets, which contributed
+~11% to the Company's consolidated revenues for FY21.
+Sun Pharma also has a pipeline of 4 molecules undergoing
+clinical trials.
+The key molecules are:
+1. llumya is undergoing Phase-3 trials for psoriatic arthritis
+indication.
+2. SCD-044 is undergoing Phase-2 trials for atopic
+dermatitis and moderate to severe plaque psoriasis.
+3. MM-II is also undergoing Phase-2 trials for treatment
+for knee pain in patients with symptomatic knee
+osteoarthritis.
+4. GLP-1R agonist is in Phase-1 trials for diabetes.
+18
+3-6%
+1,265.3
+4.7%
+1580-1610
+3-6%
+Statutory Reports
+Management Discussion and Analysis
+Table 2 Global Pharmaceutical Market - Share by Product Type¹
+Orginal brands (%)
+Region Year
+Non-orginal
+brands (%)
+Unbranded
+generics (%)
+Sun Pharma commenced investing in building a global
+specialty business 2014 onwards. Significant resources
+were deployed in gaining access to specialty products, their
+clinical development, commercialisation and in developing
+a future R&D pipeline of specialty products. Upfront
+investments were made in establishing the front-end sales
+force, reimbursement (market access) teams and in branding
+and promotion of specialty products.
+(%)
+2010
+21
+Sun Pharma Ranbaxy Merger
+2014 In-licencing agreement with Merck for
+Tildrakizumab, a biologic for psoriasis
+2014 Acquired Pharmalucence
+2012 Acquired DUSA Pharma, Inc.
+2010 Acquired Taro Pharmaceutical Industries Ltd.
+1997 Acquired Caraco
+Local manufacturing capability to enhance presence in Russian market
+Access to European market for Tildrakizumab
+Entry into Japan
+Distribution services agreement in India for brand 'Oxra' and 'Oxramet'Ⓡ
+(brands of dapagliflozin, used for diabetes treatment)
+OTC, vaccines and
+other products (%)
+Strengthens branded ophthalmic portfolio in the US
+•Strong positioning in the emerging markets
+Strengthening the specialty product pipeline across the globe
+Access to sterile injectable capacity in the US
+Access to specialty drug-device combination in dermatology segment in the US
+Access to dermatology generic portfolio as well as
+manufacturing facilities in Israel and Canada
+Entry into the US Market
+Our global specialty initiatives¹
+Specialty medicines are latest generation products, which
+are targeted at treating chronic, complex and rare diseases.
+They accounted for about 38% of the global pharmaceutical
+spending in 2020 (up from 29% in 2015) and are estimated
+to account for approximately 45% of global pharmaceutical
+spending in 2025.
+Chart 7 Global Specialty Medicines Share of
+Total Pharmaceutical Spending¹
+Distribution services agreement in India for brand 'Axcer'Ⓡ (brand of
+ticagrelor, used for the treatment of acute coronary syndrome)
+•Strengthen position in the global generic pharma industry
+•Top Pharma Company in India
+Total (US$ Billion)
+2020
+2025
+22
+18-21
+12
+10-16
+291
+415-445
+Markets
+35
+Other Markets
+34-38
+28-41
+33-45
+17
+11-18
+6
+6-9
+15
+18-22
+Global Market
+63
+42
+2015 Distribution agreement with AstraZeneca
+37
+29
+2020
+2025
+2020
+2025
+2020
+2025
+2020
+Developed
+74
+30-35
+70-71
+15-17
+5
+4-5
+10
+8-9
+959
+2025
+1130-1160
+Markets
+Pharmerging
+11
+Sun Pharmaceutical Industries Limited
+CARE
+89.1
+Other pharmerging markets
+dependent on the Group's future activity is recognised
+only when the activity requiring the payment is
+performed.
+Financial Statements
+Consolidated Accounts
+independent of the cash inflows of other assets or
+groups of assets (the "cash-generating unit").
+An impairment loss is recognised in the profit or loss
+if the estimated recoverable amount of an asset or
+its cash generating unit is lower than its carrying
+amount. Impairment losses recognised in respect of
+cash-generating units are allocated first to reduce the
+carrying amount of any goodwill allocated to the units
+and then to reduce the carrying amount of the other
+assets in the unit on a pro-rata basis.
+In respect of assets other than goodwill, impairment
+losses recognised in prior periods are assessed at each
+reporting date for any indications that the loss has
+decreased or no longer exists. An impairment loss is
+reversed if there has been a change in the estimates
+used to determine the recoverable amount. An
+impairment loss is reversed only to the extent that the
+asset's carrying amount does not exceed the carrying
+amount that would have been determined, net of
+depreciation or amortisation, if no impairment loss had
+been recognised.
+i.
+Non-current assets held for sale
+Non-current assets and disposal groups are classified
+as held for sale if their carrying amount will be
+recovered principally through a sale transaction rather
+than through continuing use. This condition is regarded
+as met only when the asset (or disposal group) is
+available for immediate sale in its present condition
+subject only to terms that are usual and customary
+for sales of such asset (or disposal group) and its sale
+is highly probable. Management must be committed
+to the sale, which should be expected to qualify for
+recognition as a completed sale within one year from
+the date of classification.
+When the Group is committed to a sale plan involving
+loss of control of a subsidiary, all of the assets and
+liabilities of that subsidiary are classified as held
+for sale when the criteria described above are met,
+regardless of whether the Group will retain a non-
+controlling interest in its former subsidiary after the
+sale.
+When the Group is committed to a sale plan
+involving disposal of an investment, or a portion of
+an investment, in an associate or joint venture, the
+investment or the portion of the investment that will
+be disposed off is classified as held for sale when
+the criteria described above are met, and the Group
+discontinues the use of the equity method in relation
+to the portion that is classified as held for sale.
+j.
+Any retained portion of an investment in an associate
+or a joint venture that has not been classified as held
+for sale continues to be accounted for using the equity
+method. The Group discontinues the use of the equity
+method at the time of disposal when the disposal
+results in the Group losing significant influence over
+the associate or joint venture.
+After the disposal takes place, the Group accounts for
+any retained interest in the associate or joint venture
+in accordance with Ind AS 109 unless the retained
+interest continues to be an associate or a joint venture,
+in which case the Group uses the equity method
+(see the accounting policy regarding investments in
+associates or joint ventures above).
+Non-current assets (and disposal groups) classified
+as held for sale are measured at the lower of their
+carrying amount and fair value less costs to sell. Non-
+current assets held for sale are not depreciated or
+amortised.
+Financial instruments
+A financial instrument is any contract that gives rise to
+a financial asset of one entity and a financial liability or
+equity instrument of another entity.
+Financial assets
+Initial recognition and measurement
+All financial assets are recognised initially at fair value
+plus, in the case of financial assets not recorded at fair
+value through profit or loss, transaction costs that are
+attributable to the acquisition of the financial asset.
+Purchases or sales of financial assets that require
+delivery of assets within a time frame established by
+regulation or convention in the market place (regular
+way trades) are recognised on the date the group
+commits to purchase or sell the financial assets.
+Subsequent measurement
+For purposes of subsequent measurement, financial
+assets are classified in four categories:
+⚫ Debt instruments at amortised cost
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+• Debt instruments and equity instruments at fair
+value through profit or loss (FVTPL)
+• Equity instruments measured at fair value through
+other comprehensive income (FVTOCI)
+Annual Report 2020-21
+195
+Sun Pharmaceutical Industries Limited
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+194
+The recoverable amount of an asset or cash-generating
+unit (as defined below) is the greater of its value in use
+and its fair value less costs to sell. In assessing value in
+use, the estimated future cash flows are discounted to
+their present value using a pre-tax discount rate that
+reflects current market assessments of the time value
+of money and the risks specific to the asset or the
+cash-generating unit for which the estimates of future
+cash flows have not been adjusted. For the purpose
+of impairment testing, assets are grouped together
+into the smallest group of assets that generates
+cash inflows from continuing use that are largely
+198
+The Group uses derivative financial instruments, such
+as forward currency contracts, full currency swap,
+Derivative financial instruments and hedge accounting
+Initial recognition and subsequent measurement
+The Group determines classification of financial
+assets and liabilities on initial recognition. After
+initial recognition, no reclassification is made for
+financial assets which are equity instruments and
+financial liabilities. For financial assets which are debt
+instruments, a reclassification is made only if there is
+a change in the business model for managing those
+assets. Changes to the business model are expected
+to be infrequent. The Group's senior management
+determines change in the business model as a result
+of external or internal changes which are significant
+to the Group's operations. Such changes are evident
+to external parties. A change in the business model
+occurs when the Group either begins or ceases to
+perform an activity that is significant to its operations.
+If the Group reclassifies financial assets, it applies the
+reclassification prospectively from the reclassification
+date which is the first day of the immediately next
+reporting period following the change in business
+model. The Group does not restate any previously
+recognised gains, losses (including impairment gains or
+losses) or interest.
+Reclassification of financial assets
+Derivatives embedded in non-derivative host contracts
+that are not financial assets within the scope of Ind
+AS 109 are accounted for as separate derivatives and
+recorded at fair value if their economic characteristics
+and risks are not closely related to those of the host
+contracts and the host contracts are not held for
+trading or designated at fair value though profit or loss.
+These embedded derivatives are measured at fair value
+with changes in fair value recognised in profit or loss,
+unless designated as effective hedging instruments.
+Embedded derivatives
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+economic benefits embodied in the specific asset to
+which they relate.
+Research and development
+Expenditure on research activities undertaken with
+the prospect of gaining new scientific or technical
+knowledge and understanding are recognised as
+an expense when incurred. Development activities
+involve a plan or design for the production of new
+or substantially improved products and processes.
+An internally-generated intangible asset arising from
+development is recognised if and only if all of the
+following have been demonstrated:
+⚫ development costs can be measured reliably;
+⚫ the product or process is technically and
+commercially feasible;
+• future economic benefits are probable; and
+⚫ the Group intends to and has sufficient resources/
+ability to complete development and to use or sell
+the asset.
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable
+to preparing the asset for its intended use. Other
+development expenditure is recognised in profit or loss
+as incurred.
+Payments to third parties that generally take the form
+of up-front payments and milestones for in-licensed
+products, compounds and intellectual property are
+capitalised since the probability of expected future
+economic benefits criterion is always considered to be
+satisfied for separately acquired intangible assets.
+Acquired research and development intangible assets
+which are under development, are recognised as In-
+Process Research and Development assets ("IPR&D").
+IPR&D assets are not amortised, but evaluated for
+potential impairment on an annual basis or when
+there are indications that the carrying value may
+not be recoverable. Any impairment charge on such
+IPR&D assets is recognised in profit or loss. Intangible
+assets relating to products under development, other
+intangible assets not available for use and intangible
+assets having indefinite useful life are tested for
+impairment annually, or more frequently when there is
+an indication that the assets may be impaired. All other
+intangible assets are tested for impairment when there
+are indications that the carrying value may not be
+recoverable.
+The consideration for acquisition of intangible asset
+which is based on reaching specific milestone that are
+h.
+A financial liability is derecognised when the obligation
+under the liability is discharged or cancelled or
+expires. When an existing financial liability is replaced
+by another from the same lender on substantially
+different terms, or the terms of an existing liability
+are substantially modified, such an exchange or
+modification is treated as the derecognition of the
+original liability and the recognition of a new liability.
+The difference between the carrying amount of the
+financial liability derecognised and the consideration
+paid and payable is recognised in profit or loss.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate. All other
+expenditures, including expenditures on internally
+generated goodwill and brands, are recognised in the
+statement of profit and loss as incurred.
+Amortisation is recognised on a straight-line basis
+over the estimated useful lives of intangible assets.
+Intangible assets that are not available for use are
+amortised from the date they are available for use.
+The estimated useful lives for Product related
+intangibles and Other intangibles ranges from 3 to 20
+years.
+The estimated useful life and amortisation method are
+reviewed at the end of each reporting period, with the
+effect of any changes in estimate being accounted for
+on a prospective basis.
+De-recognition of intangible assets
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits are
+expected from their use. Gain or loss arising on such
+de-recognition is recognised in profit or loss, and are
+measured as the difference between the net disposal
+proceeds, if any, and the carrying amount of respective
+intangible assets as on the date of de-recognition.
+Impairment of non-financial assets other than
+goodwill
+The carrying amounts of the Group's non-financial
+assets are reviewed at each reporting date to
+determine whether there is any indication of
+impairment. If any such indication exists, then the
+asset's recoverable amount is estimated in order to
+determine the extent of the impairment loss, if any.
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Debt instruments at amortised cost
+The Group follows 'simplified approach' for recognition
+of impairment loss allowance on trade receivables
+or any contractual right to receive cash or another
+financial asset. The application of simplified approach
+does not require the Group to track changes in credit
+risk. Rather, it recognises impairment loss allowance
+based on lifetime ECLs at each reporting date, right
+from its initial recognition.
+As a practical expedient, the Group uses a provision
+matrix to determine impairment loss allowance on
+portfolio of its trade receivables. The provision matrix
+is based on its historically observed default rates
+over the expected life of the trade receivables and
+is adjusted for forward-looking estimates. At every
+reporting date, the historical observed default rates
+are updated and changes in the forward-looking
+estimates are analysed.
+Financial liabilities and equity instruments
+Classification as debt or equity
+Debt and equity instruments issued by a Group entity
+are classified as either financial liabilities or as equity
+in accordance with the substance of the contractual
+arrangements and the definitions of a financial liability
+and an equity instrument.
+Equity instruments
+An equity instrument is any contract that evidences
+a residual interest in the assets of an entity after
+deducting all of its liabilities. Equity instruments issued
+by a Group entity are recognised at the proceeds
+received, net of direct issue costs.
+Repurchase of the parent company's own equity
+instruments is recognised and deducted directly in
+equity. No gain or loss is recognised in profit or loss on
+the purchase, sale, issue or cancellation of the parent
+company's own equity instruments.
+Compound financial instruments
+The component of compound financial instruments
+(convertible notes) issued by the Group are classified
+separately as financial liabilities and equity in
+accordance with the substance of the contractual
+arrangements and the definitions of a financial liability
+and an equity instrument.
+Initial recognition and measurement
+All financial liabilities are recognised initially at fair
+value and, in the case of loans and borrowings and
+payables, net of directly attributable transaction costs.
+The Company's financial liabilities include trade and
+other payables, loans and borrowings including bank
+overdrafts and lease liabilities, financial guarantee
+contracts and derivative financial instruments.
+In accordance with Ind AS 109, the Group applies
+expected credit loss (ECL) model for measurement and
+recognition of impairment loss on the trade receivables
+or any contractual right to receive cash or another
+financial asset that result from transactions that are
+within the scope of Ind AS 115.
+Subsequent measurement
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL when the
+financial liability is held for trading or is designated
+upon initial recognition as at fair value through
+profit or loss. Financial liabilities are classified as
+held for trading if they are incurred principally for
+the purpose of repurchasing in the near term or on
+initial recognition it is part of a portfolio of identified
+financial instruments that the Group manages together
+and has a recent actual pattern of short-term profit-
+taking. This category also includes derivative financial
+instruments that are not designated as hedging
+instruments in hedge relationships as defined by Ind
+Annual Report 2020-21
+197
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+AS 109. Gains or losses on liabilities held for trading
+are recognised in the profit or loss.
+Financial liabilities designated upon initial recognition
+at fair value through profit or loss are designated as
+such at the initial date of recognition, and only if the
+criteria in Ind AS 109 are satisfied. For instruments
+not held-for-trading financial liabilities designated
+as at FVTPL, fair value gains/ losses attributable to
+changes in own credit risk are recognised in OCI,
+unless the recognition of the effects of changes in the
+liability's credit risk in OCI would create or enlarge an
+accounting mismatch in profit or loss, in which case
+these effects of changes in credit risk are recognised in
+profit or loss. These gains/loss are not subsequently
+transferred to profit or loss. All other changes in
+fair value of such liability are recognised in the
+consolidated statement of profit or loss.
+Financial liabilities subsequently measured at amortised
+cost
+Financial liabilities that are not held-for-trading and are
+not designated as at FVTPL are measured at amortised
+cost in subsequent accounting periods. The carrying
+amounts of financial liabilities that are subsequently
+measured at amortised cost are determined based
+on the effective interest rate (EIR) method. Interest
+expense that is not capitalised as part of costs of an
+asset is included in the 'Finance costs' line item in the
+profit or loss.
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using the
+EIR method. Amortised cost is calculated by taking
+into account any discount or premium on acquisition
+and fees or costs that are an integral part of the EIR.
+The EIR amortisation is included as finance costs in the
+profit or loss.
+Financial guarantee contracts
+All financial liabilities are subsequently measured at
+amortised cost using the effective interest method or
+at FVTPL.
+Impairment of financial assets
+On derecognition of a financial asset in its entirety,
+the difference between the asset's carrying amount
+and the sum of the consideration received and
+receivable and the cumulative gain or loss that had
+been recognised in OCI and accumulated in equity is
+recognised in profit or loss if such gain or loss would
+have otherwise been recognised in profit or loss on
+disposal of that financial asset.
+When the Group has transferred its rights to receive
+cash flows from an asset or has entered into a
+pass-through arrangement, it evaluates if and to
+what extent it has retained the risks and rewards
+of ownership. When it has neither transferred nor
+retained substantially all of the risks and rewards of
+the asset, nor transferred control of the asset, the
+Group continues to recognise the transferred asset
+to the extent of the Group's continuing involvement.
+In that case, the Group also recognises an associated
+liability. The transferred asset and the associated
+liability are measured on a basis that reflects the rights
+and obligations that the Group has retained.
+A 'debt instrument' is measured at the amortised cost
+if both the following conditions are met:
+a)
+b)
+The asset is held within a business model
+whose objective is to hold assets for collecting
+contractual cash flows, and
+Contractual terms of the asset give rise on
+specified dates to cash flows that are solely
+payments of principal and interest (SPPI) on the
+principal amount outstanding.
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost
+is calculated by taking into account any discount or
+premium on acquisition and fees or costs that are
+an integral part of the EIR. The EIR amortisation is
+included in Other Income in the profit or loss. The
+losses arising from impairment are recognised in the
+profit or loss.
+Debt instrument at FVTOCI
+A 'debt instrument' is measured as at FVTOCI if both
+of the following criteria are met:
+a)
+b)
+The objective of the business model is achieved
+both by collecting contractual cash flows and
+selling the financial assets, and
+The contractual terms of the instrument give rise
+on specified dates to cash flows that are SPPI on
+the principal amount outstanding.
+Debt instruments included within the FVTOCI
+category are measured initially as well as at each
+reporting date at fair value. Fair value movements
+are recognised in the other comprehensive income
+(OCI). However, the Group recognises interest income,
+impairment losses and reversals and foreign exchange
+gain or loss in the profit or loss. On derecognition of
+the asset, cumulative gain or loss previously recognised
+in OCI is reclassified from the equity to profit or
+loss. Interest earned whilst holding FVTOCI debt
+instrument is reported as interest income using the EIR
+method.
+Debt instrument at FVTPL
+FVTPL is a residual category for debt instruments. Any
+debt instrument, which does not meet the criteria for
+categorisation as at amortised cost or as FVTOCI, is
+classified as at FVTPL.
+In addition, the Group may elect to designate a debt
+instrument, which otherwise meets amortised cost or
+FVTOCI criteria, as at FVTPL. However, such election
+is allowed only if doing so reduces or eliminates a
+measurement or recognition inconsistency (referred to
+as 'accounting mismatch').
+Debt instruments included within the FVTPL category
+are measured at fair value with all the changes in the
+profit or loss.
+Equity instruments
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which are
+held for trading are classified as at FVTPL. For all
+other equity instruments, the Group may make an
+irrevocable election to present subsequent changes
+in the fair value in OCI. The Group makes such
+election on an instrument-by-instrument basis. The
+classification is made on initial recognition and is
+irrevocable.
+If the Group decides to classify an equity instrument
+as at FVTOCI, then all fair value changes on the
+instrument, including foreign exchange gain or loss and
+excluding dividends, are recognised in the OCI. There
+is no recycling of the amounts from OCI to profit or
+loss, even on sale of investment. However, the Group
+may transfer the cumulative gain or loss within equity.
+Equity instruments included within the FVTPL
+category are measured at fair value with all changes
+recognised in the profit or loss.
+Derecognition
+A financial asset (or, where applicable, a part of a
+financial asset or part of a group of similar financial
+assets) is primarily derecognised (i.e. removed from the
+Group's consolidated balance sheet) when:
+• The contractual rights to receive cash flows from
+the asset have expired, or
+• The Group has transferred its rights to receive
+contractual cash flows from the asset or has
+assumed an obligation to pay the received cash
+flows in full without material delay to a third party
+under a 'pass-through' arrangement; and either
+(a) the Group has transferred substantially all the
+risks and rewards of the asset, or (b) the Group has
+neither transferred nor retained substantially all the
+risks and rewards of the asset, but has transferred
+control of the asset.
+196
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+Sun Pharmaceutical Industries Limited
+CARE
+Financial guarantee contracts are those contracts
+that require a payment to be made to reimburse the
+holder for a loss it incurs because the specified debtor
+fails to make a payment when due in accordance with
+the terms of a debt instrument. Financial guarantee
+contracts are recognised initially as a liability at fair
+value, adjusted for transaction costs that are directly
+attributable to the issuance of the guarantee. If not
+designated as at FVTPL, are subsequently measured at
+the higher of the amount of loss allowance determined
+as per impairment requirements of Ind AS 109 and the
+amount initially recognised less cumulative amount of
+income recognised.
+Derecognition
+A contingent liability of the acquiree is assumed in a
+business combination only if such a liability represents
+a present obligation and arises from a past event
+and its fair value can be measured reliably. On an
+acquisition-by-acquisition basis, the Group recognises
+any non-controlling interest in the acquiree either
+at fair value or at the non-controlling interest's
+proportionate share of the acquiree's identifiable
+net assets. Transaction costs that the Group incurs
+in connection with a business combination, such as
+190
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+b.
+C.
+Financial Statements
+Consolidated Accounts
+When a Group entity transacts with an associate or a
+joint venture of the Group, profits and losses resulting
+from the transactions with the associate or joint
+venture are recognised in the Group's consolidated
+financial statements only to the extent of interest in
+the associate or joint venture that are not related to
+the Group.
+Current vs. Non-current
+The Group presents assets and liabilities in the balance
+sheet based on current / non-current classification. An
+asset is treated as current when it is:
+• Expected to be realised or intended to be sold or
+consumed in normal operating cycle
+⚫ Held primarily for the purpose of trading
+• Expected to be realised within twelve months after
+the reporting period, or
+The difference between the carrying amount of
+the associate or joint venture at the date the equity
+method was discontinued, and the fair value of any
+retained interest and any proceeds from disposing
+of a part interest in the associate or joint venture is
+included in the determination of the gain or loss on
+disposal of the associate or joint venture. In addition,
+the Group accounts for all amounts previously
+recognised in other comprehensive income in relation
+to that associate or joint venture on the same basis as
+would be required if that associate or joint venture had
+directly disposed off the related assets or liabilities.
+• Cash or cash equivalent unless restricted from being
+exchanged or used to settle a liability for at least
+twelve months after the reporting period.
+A liability is current when:
+• It is expected to be settled in normal operating cycle
+It is held primarily for the purpose of trading
+• It is due to be settled within twelve months after the
+reporting period, or
+• There is no unconditional right to defer the
+settlement of the liability for at least twelve months
+after the reporting period.
+The Group classifies all other liabilities as non-current.
+Deferred tax assets and liabilities are classified as non-
+current assets and liabilities.
+The operating cycle is the time between the
+acquisition of assets for processing and their
+realisation in cash and cash equivalents. The Group has
+identified twelve months as its operating cycle.
+Business combinations
+The Group uses the acquisition method of accounting
+to account for business combinations that occurred
+on or after April 01, 2015. The acquisition date is
+generally the date on which control is transferred to
+the acquirer. Judgment is applied in determining the
+acquisition date and determining whether control is
+transferred from one party to another. Control exists
+when the Group is exposed to, or has rights to, variable
+returns from its involvement with the entity and has
+the ability to affect those returns through power
+over the entity. In assessing control, potential voting
+rights are considered only if the rights are substantive.
+The Group measures goodwill as of the applicable
+acquisition date at the fair value of the consideration
+transferred, including the recognised amount of any
+non-controlling interest in the acquiree and the fair
+value of the acquirer's previously held equity interest
+in the acquiree (if any), less the net recognised amount
+of the identifiable assets acquired and liabilities
+assumed. When the fair value of the net identifiable
+assets acquired and liabilities assumed exceeds the
+consideration transferred, a bargain purchase gain is
+recognised immediately in the OCI and accumulates
+the same in equity as Capital reserve where there
+exists clear evidence of the underlying reasons for
+classifying the business combination as a bargain
+purchase else the gain is directly recognised in equity
+as Capital reserve. Consideration transferred includes
+the fair values of the assets transferred, liabilities
+incurred by the Group to the previous owners of the
+acquiree, and equity interests issued by the Group.
+Consideration transferred also includes the fair value
+of any contingent consideration. Changes in the fair
+value of the contingent consideration that qualify
+as measurement period adjustments are adjusted
+retrospectively, with corresponding adjustments
+against goodwill or capital reserve, as the case maybe.
+The subsequent accounting for changes in the fair
+value of the contingent consideration that do not
+qualify as measurement period adjustments depends
+on how the contingent consideration is classified.
+Contingent consideration that is classified as equity is
+not remeasured at subsequent reporting dates and its
+subsequent settlement is accounted for within equity.
+Contingent consideration that is classified as an asset
+or a liability is remeasured at fair value at subsequent
+reporting dates with the corresponding gain or loss
+being recognised in profit or loss. Consideration
+transferred does not include amounts related to
+settlement of pre-existing relationships.
+The consolidated financial statements were authorised for
+issue in accordance with a resolution of the directors on
+May 27, 2021.
+Annual Report 2020-21
+All other assets are classified as non-current.
+An investment in an associate or a joint venture is
+accounted for using the equity method from the date
+on which the investee becomes an associate or a joint
+venture and discontinues from the date when the
+investment ceases to be an associate or a joint venture,
+or when the investment is classified as held for sale.
+The results and assets and liabilities of associates or
+joint ventures are incorporated in these consolidated
+financial statements using the equity method of
+accounting, except when the investment, or a portion
+thereof, is classified as held for sale, in which case it is
+accounted for in accordance with Ind AS 105. Under
+the equity method, an investment in an associate or a
+joint venture is initially recognised in the consolidated
+balance sheet at cost and adjusted thereafter to
+recognise the Group's share of the profit or loss and
+other comprehensive income of the associate or joint
+venture. Distributions received from an associate
+or a joint venture reduce the carrying amount of
+the investment. The carrying value of the Group's
+investment includes goodwill identified on acquisition,
+net of any accumulated impairment losses. When
+the Group's share of losses of an associate or a joint
+venture exceeds its interest in that associate or joint
+venture, the carrying amount of that interest (including
+any long-term investments) is reduced to zero and the
+recognition of further losses is discontinued except to
+the extent that the Group has obligations or has made
+payments on behalf of the associate or joint venture.
+A joint venture is a joint arrangement whereby the
+parties that have joint control of the arrangement have
+rights to the net assets of the joint arrangement. Joint
+control is the contractually agreed sharing of control
+of an arrangement, which exists only when decisions
+about the relevant activities require unanimous
+consent of the parties sharing control.
+The Group has prepared its consolidated financial
+statements for the year ended March 31, 2021 in
+accordance with Indian Accounting Standards (Ind
+AS) notified under the Companies (Indian Accounting
+Standards) Rules, 2015 (as amended) together with the
+comparative period data as at and for the year ended
+March 31, 2020.
+2.2 Basis of preparation and presentation
+The consolidated financial statements have been
+prepared on the historical cost convention and accrual
+basis, except for: (i) certain financial instruments
+that are measured at fair values at the end of each
+reporting period; (ii) Non-current assets classified
+as held for sale which are measured at the lower of
+their carrying amount and fair value less costs to sell;
+(iii) investment in associates and joint ventures are
+accounted for using the equity method (iv) derivative
+financial instruments and (v) defined benefit plans
+- plan assets that are measured at fair values at the
+end of each reporting period, as explained in the
+accounting policies below:
+Historical cost is generally based on the fair value of
+the consideration given in exchange for goods and
+services.
+The consolidated financial statements are presented
+in Indian Rupees (*) and all values are rounded to the
+nearest Million (*000,000) upto one decimal, except
+when otherwise indicated.
+a.
+Fair value is the price that would be received to sell
+an asset or paid to transfer a liability in an orderly
+transaction between market participants at the
+measurement date, regardless of whether that price
+is directly observable or estimated using another
+valuation technique. In estimating the fair value of
+an asset or a liability, the Group takes into account
+the characteristics of the asset or liability if market
+participants would take those characteristics into
+account when pricing the asset or liability at the
+measurement date. Fair value for measurement and/
+or disclosure purposes in these consolidated financial
+statements is determined on such a basis, except for
+share-based payment transactions that are within
+the scope of Ind AS 102, leasing transactions that are
+within the scope of Ind AS 116, and measurements
+that have some similarities to fair value but are not fair
+value, such as net realisable value in Ind AS 2 or value
+in use in Ind AS 36.
+In addition, for financial reporting purposes, fair
+value measurements are categorised into Level 1,
+2, or 3 based on the degree to which the inputs
+to the fair value measurements are observable
+and the significance of the inputs to the fair value
+measurement in its entirety, which are described as
+follows:
+• Level 1 inputs are quoted prices (unadjusted) in
+active markets for identical assets or liabilities that
+the entity can access at the measurement date;
+• Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the
+asset or liability, either directly or indirectly; and
+• Level 3 inputs are unobservable inputs for the asset
+or liability.
+The Group has consistently applied the following
+accounting policies to all periods presented in these
+consolidated financial statements.
+Basis of consolidation
+The consolidated financial statements comprise the
+financial statements of the parent company and its
+subsidiaries as disclosed in Note 38. Control exists
+when the parent has power over the entity, is exposed,
+or has rights, to variable returns from its involvement
+with the entity and has the ability to affect those
+returns by using its power over the entity. Power
+is demonstrated through existing rights that give
+the ability to direct relevant activities, those which
+significantly affect the entity's returns. Subsidiaries are
+consolidated from the date control commences until
+the date control ceases.
+Annual Report 2020-21
+189
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Profit or loss and each component of other
+comprehensive income are attributed to the owners
+of the Company and to the non-controlling interests.
+Total comprehensive income of subsidiaries is
+attributed to the owners of the Company and to the
+non-controlling interests even if this results in the non-
+controlling interests having a deficit balance.
+The financial statements of the Group companies
+are consolidated on a line-by-line basis and intra-
+Group balances, transactions including unrealised
+gain / loss from such transactions and cash flows
+relating to transactions between members of the
+Group are eliminated upon consolidation. These
+financial statements are prepared by applying uniform
+accounting policies in use at the Group.
+Changes in the Group's ownership interests in existing
+subsidiaries
+Changes in the Group's ownership interests in
+subsidiaries that do not result in the Group losing
+control over the subsidiaries are accounted for as
+equity transactions. The carrying amounts of the
+Group's interests and the non-controlling interests
+are adjusted to reflect the changes in their relative
+interests in the subsidiaries. Any difference between
+the amount by which the non-controlling interests are
+adjusted and the fair value of the consideration paid or
+received is recognised directly in equity and attributed
+to owners of the Company.
+When the Group loses control of a subsidiary, a gain
+or loss is recognised in profit or loss and is calculated
+as the difference between (i) the aggregate of the fair
+value of the consideration received and the fair value
+of any retained interest and (ii) the previous carrying
+amount of the assets (including goodwill) and liabilities
+of the subsidiary and any non-controlling interests. All
+amounts previously recognised in other comprehensive
+income in relation to that subsidiary are accounted for
+as if the Group had directly disposed off the related
+assets or liabilities of the subsidiary (i.e. reclassified
+to profit or loss or transferred to another category of
+equity as specified/ permitted by applicable Ind AS).
+The fair value of any investment retained in the former
+subsidiary at the date when control is lost is regarded
+as the fair value on initial recognition for subsequent
+accounting under Ind AS 109, or, when applicable,
+the cost on initial recognition of an investment in an
+associate or a joint venture.
+Investment in Associates and Joint Ventures
+Associates are those entities over which the Group has
+significant influence. Significant influence is the power
+to participate in the financial and operating policy
+decisions of the entities but is not control or joint
+control of those policies.
+191
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+g.
+The estimated useful lives are as follows:
+Asset Category
+Buildings including factory buildings*
+Plant and equipment*
+Vehicles
+Office equipment
+Furniture and fixtures
+* Includes assets given under operating lease
+No. of years
+7-125
+1-30
+2-15
+2-17
+3-30
+Software for internal use, which is primarily acquired
+from third-party vendors and which is an integral part
+of a tangible asset, including consultancy charges for
+implementing the software, is capitalised as part of the
+related tangible asset. Subsequent costs associated
+with maintaining such software are recognised
+as expense as incurred. The capitalised costs are
+amortised over the lower of the estimated useful life
+of the software and the remaining useful life of the
+tangible fixed asset.
+Goodwill and Other Intangible assets
+Goodwill
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-
+controlling interest in the acquiree, over the fair value
+of the Group's share of identifiable net assets acquired.
+Goodwill is measured at cost less accumulated
+impairment losses. A cash-generating unit to which
+goodwill has been allocated is tested for impairment
+annually, or more frequently when there is an
+indication that the unit may be impaired. The goodwill
+acquired in a business combination is, for the purpose
+of impairment testing, allocated to cash-generating
+units that are expected to benefit from the synergies
+of the combination. Any impairment loss for goodwill is
+recognised directly in profit or loss. An impairment loss
+recognised for goodwill is not reversed in subsequent
+periods.
+On disposal of a cash-generating unit to which
+goodwill is allocated, the goodwill associated with
+the disposed cash-generating unit is included in the
+carrying amount of the cash-generating unit when
+determining the gain or loss on disposal.
+Other Intangible assets
+Other Intangible assets that are acquired by the Group
+and that have finite useful lives are measured at cost
+less accumulated amortisation and accumulated
+impairment losses, if any. Subsequent expenditures
+are capitalised only when they increase the future
+Annual Report 2020-21
+193
+Sun Pharmaceutical Industries Limited (SPIL or the "parent
+company"), is a public limited company incorporated
+and domiciled in India, having its registered office at
+Vadodara, Gujarat, India. SPIL is listed on the BSE Limited
+and National Stock Exchange of India Limited. The parent
+company and its subsidiaries (hereinafter referred to as the
+"Company" or the "Group") are engaged in the business of
+manufacturing, developing and marketing a wide range of
+branded and generic formulation and Active Pharmaceutical
+ingredients (APIs). The Group has various manufacturing
+locations spread across the world with trading and other
+incidental and related activities extending to the global
+market.
+NOTE: 1 GENERAL INFORMATION
+Financial Statements
+Consolidated Accounts
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+Depreciation is recognised on the cost of assets (other
+than freehold land and Capital work-in-progress) less
+their residual values on straight-line method over their
+useful lives. Leasehold improvements are depreciated
+over period of the lease agreement or the useful life,
+whichever is shorter. Depreciation methods, useful
+lives and residual values are reviewed at the end of
+each reporting period, with the effect of any changes
+in estimate accounted for on a prospective basis.
+2.1 Statement of compliance
+Items of property, plant and equipment acquired
+through exchange of non-monetary assets are
+measured at fair value, unless the exchange
+transaction lacks commercial substance or the fair
+value of either the asset received or asset given up is
+not reliably measurable, in which case the acquired
+asset is measured at the carrying amount of the asset
+given up.
+Assets in the course of construction for production,
+supply or administrative purposes are carried at cost,
+less any recognised impairment loss. Cost includes
+purchase price, borrowing costs if capitalisation criteria
+are met and directly attributable cost of bringing the
+asset to its working condition for the intended use.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate. Such assets
+are classified to the appropriate categories of property,
+plant and equipment when completed and ready
+for intended use. Depreciation of these assets, on
+the same basis as other assets, commences when
+the assets are ready for their intended use. When
+parts of an item of property, plant and equipment
+have different useful lives, they are accounted for as
+separate items (major components) of property, plant
+and equipment.
+for the year ended March 31, 2021
+d.
+finder's fees, legal fees, due diligence fees and other
+professional and consulting fees, are expensed as
+incurred.
+If the business combination is achieved in stages, any
+previously held equity interest is re-measured at its
+acquisition date fair value and any resulting gain or loss
+is recognised in profit or loss or OCI, as appropriate.
+If the initial accounting for a business combination
+is incomplete by the end of the reporting period in
+which the combination occurs, the Group reports
+provisional amounts for the items for which the
+accounting is incomplete. Those provisional amounts
+are adjusted during the measurement period (see
+above), or additional assets or liabilities are recognised,
+to reflect new information obtained about facts and
+circumstances that existed at the acquisition date that,
+if known, would have affected the amounts recognised
+at that date.
+Foreign currency
+Foreign currency transactions
+In preparing the financial statements of each individual
+Group entity, transactions in currencies other than
+the entity's functional currency (foreign currencies)
+are translated at exchange rates on the date of
+the transactions. Monetary assets and liabilities
+denominated in foreign currencies at the reporting
+date are translated into the functional currency at
+the exchange rate on that date. Exchange differences
+arising on the settlement of monetary items or
+on translating monetary items at rates different
+from those at which they were translated on initial
+recognition during the period or in previous period are
+recognised in profit or loss in the period in which they
+arise except for:
+• exchange differences on foreign currency
+borrowings relating to assets under construction
+for future productive use, which are included in
+the cost of those assets when they are regarded
+as an adjustment to interest costs on those foreign
+currency borrowings (see note 2.2.s).
+• exchange differences on transactions entered into
+in order to hedge certain foreign currency risks (see
+note 2.2.j below for hedging accounting policies).
+• exchange differences relating to the translation of
+the results and the net assets of the Company's
+foreign operations from their functional currencies
+to the Company's presentation currency (i.e *) are
+recognised directly in the other comprehensive
+income and accumulated in foreign currency
+e.
+translation reserve. Exchange difference in the
+foreign currency translation reserve are reclassified
+to statement of profit or loss account on the
+disposal of the foreign operation.
+Non-monetary items that are measured in terms of
+historical cost in foreign currency are measured using
+the exchange rates at the date of initial transaction.
+Foreign operations
+For the purposes of presenting these consolidated
+financial statements, the assets and liabilities of
+Group's foreign operations, are translated to the Indian
+Rupees at exchange rates at the end of each reporting
+period. The income and expenses of such foreign
+operations are translated at the average exchange
+rates for the period. Resulting foreign currency
+differences are recognised in other comprehensive
+income and presented within equity as part of Foreign
+Currency Translation Reserve (and attributed to non-
+controlling interests as appropriate). When a foreign
+operation is disposed off, the relevant amount in the
+Foreign Currency Translation Reserve is reclassified to
+profit or loss.
+In addition, in relation to a partial disposal of a
+subsidiary that includes a foreign operation that
+does not result in the Group losing control over the
+subsidiary, the proportionate share of accumulated
+exchange differences are re-attributed to non-
+controlling interests and are not recognised in profit or
+loss. For all other partial disposals (i.e. partial disposals
+of associates or joint arrangements that do not result in
+the Group losing significant influence or joint control),
+the proportionate share of the accumulated exchange
+differences is reclassified to profit or loss.
+Goodwill and fair value adjustments to identifiable
+assets acquired and liabilities assumed through
+acquisition of a foreign operation are treated as assets
+and liabilities of the foreign operation and translated
+at the rate of exchange prevailing at the end of each
+reporting period. Exchange differences arising are
+recognised in other comprehensive income.
+Segment reporting
+Operating segments are reported in a manner
+consistent with the internal reporting provided to the
+chief operating decision maker. The chief operating
+decision maker of the Company is responsible for
+allocating resources and assessing performance of the
+operating segments.
+192
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+f.
+Financial Statements
+Consolidated Accounts
+Property, plant and equipment
+Items of property, plant and equipment are stated in
+consolidated balance sheet at cost less accumulated
+depreciation and accumulated impairment losses, if
+any. Freehold land is not depreciated.
+An item of property, plant and equipment is
+derecognised upon disposal or when no future
+economic benefits are expected to arise from the
+continued use of the asset. Any gain or loss arising
+on the disposal or retirement of an item of property,
+plant and equipment is determined as the difference
+between the sales proceeds and the carrying amount
+of property, plant and equipment and is recognised in
+profit or loss.
+NOTE: 2 SIGNIFICANT ACCOUNTING POLICIES
+and equipment
+368.2
+8.7
+1,514.0
+0.1
+22.8
+Consolidation adjustments
+22.7
+1.0
+37.5
+(25.3)
+(227.1)
+(848.3)
+Eliminated on disposals of assets
+995.7
+28.6
+0.2
+501.4
+0.4
+431.9
+32.5
+Depreciation expense
+84.3
+1.1
+0.9
+0.4
+As at March 31, 2021
+302.6
+255.6
+948.2
+1.5
+1,396.9
+Disposals
+(760.8)
+(52.3)
+(8.8)
+(398.6)
+(6.8)
+(1,227.3)
+As at March 31, 2021
+1,998.3
+2,281.0
+2,633.3
+(1,100.7)
+2,153.9
+2,327.3
+2,153.9
+26.6
+6,939.2
+Accumulated depreciation and
+impairment
+As at March 31, 2019
+Reclassified from Property, plant
+833.0
+As at March 31, 2020
+89,758.0
+439.4
+As at March 31, 2020
+1,909.3
+41,613.4
+43,522.7
+Consolidation adjustments
+65.7
+(1,123.7)
+(1,058.0)
+Amortisation expense
+503.9
+7,830.1
+8,334.0
+Eliminated on disposals of assets
+(478.5)
+(446.8)
+(925.3)
+As at March 31, 2021
+Carrying amount
+As at March 31, 2020
+(121.2)
+As at March 31, 2021
+(96.7)
+Eliminated on disposals of assets
+* in Million
+Computer
+Software
+Trademarks and
+Designs
+Total
+Accumulated amortisation and impairment
+As at March 31, 2019
+Consolidation adjustments
+1,444.9
+45.8
+29,779.6
+31,224.5
+2,768.2
+2,814.0
+Amortisation expense
+443.0
+9,162.3
+9,605.3
+Impairment losses recognised in profit or loss
+0.1
+0.1
+(24.5)
+for the year ended March 31, 2021
+2,000.4
+49,873.4
+1,999
+345,622
+1,251.7
+195.1
+Tarsier Pharma Ltd (Formerly known as Tarsius
+182.8
+Pharma Ltd.) share application money
+153
+55.9
+428,571
+113.1
+Intact Solution LLC
+WRS Bioproducts Pty Ltd
+Investments in limited liability partnership
+Trumpcard Advisors and Finvest LLP
+Generic Solar Power LLP
+[*4,389 (March 31, 2020: 7,777)]
+Aggregate carrying value of unquoted investments
+208
+746.1
+0.0
+1,071.4
+158.0
+47,873.0
+1,999
+345,622
+Medinstill LLC
+1,186.6
+56,793.6
+57,980.2
+1,708.0
+48,595.5
+50,303.5
+Footnotes:
+(a) Buildings include 8,620 (March 31, 2020: *8,620) towards cost of shares in a co-operative housing society and also includes *1.1
+Million (March 31, 2020 : 1.1 Million) towards cost of flats not registered in the name of the parent company but is entitled to right of
+use and occupancy.
+(b) Other intangible assets consisting of trademarks, brands acquired, research and development, designs, technical know-how, licences,
+non-compete fees and other intangible assets are available to the Group in perpetuity. The amortisable amount of intangible assets is
+arrived at, based on the management's best estimates of useful lives of such assets after due consideration as regards their expected usage,
+the product life cycles, technical and technological obsolescence, market demand for products, competition and their expected future
+benefits to the Group.
+(c) For details of assets pledged as security Refer note 66.
+(d) The aggregate amortisation has been included under depreciation and amortisation expense in the consolidated statement of profit and loss.
+* Refer note 54
+NOTE: 4 INVESTMENT IN ASSOCIATES (NON-CURRENT)
+(Carrying amount determined using equity method of
+accounting)
+As at March 31, 2021
+Quantity
+* in Million
+As at March 31, 2020
+Quantity
+* in Million
+Unquoted, fully paid
+Investments in equity instruments
+Tarsier Pharma Ltd (Formerly known as Tarsius
+Pharma Ltd.)
+Notes to the Consolidated Financial Statements
+Sun Pharmaceutical Industries Limited
+CARE
+207
+(214.9)
+As at March 31, 2021
+385.3
+912.8
+1,073.5
+7.1
+2,378.7
+Carrying amount
+As at March 31, 2020
+2,251.3
+1,625.5
+8.2
+4.4
+1,448.9
+25.2
+5,363.5
+As at March 31, 2021
+1,613.0
+1,368.2
+(6.7)
+1,559.8
+(197.1)
+(10.2)
+0.9
+2.2
+680.0
+13.0
+1,493.3
+Consolidation adjustments
+(9.3)
+10.2
+(2.2)
+(11.6)
+(7.5)
+(20.4)
+Depreciation expense
+36.8
+473.4
+602.2
+8.3
+1,120.7
+Eliminated on disposals of assets
+(0.9)
+19.5
+4,560.5
+(i) For details of Ind AS 116 disclosure refer Note 54.
+98,407.0
+101,502.9
+Consolidation adjustments
+(31.6)
+(2,306.7)
+(2,338.3)
+Additions
+1,130.4
+1,034.3
+2,164.7
+Disposals
+(486.3)
+(666.1)
+(1,152.4)
+As at March 31, 2021
+3,708.4
+96,468.5
+100,176.9
+Annual Report 2020-21
+3,095.9
+As at March 31, 2020
+(155.8)
+(129.8)
+NOTE: 3B OTHER INTANGIBLE ASSETS
+Other than internally generated
+in Million
+Computer
+Software
+Trademarks and
+Designs
+Total
+At cost or deemed cost
+As at March 31, 2019
+Consolidation adjustments
+357.8
+Additions
+54.5
+87,224.8
+7,444.4
+191.6
+7,498.9
+534.2
+3,867.6
+4,401.8
+Disposals
+(26.0)
+2,533.2
+Additions
+2,327.3
+(6.3)
+Royalties
+Royalty revenue is recognised on an accrual basis
+in accordance with the substance of the relevant
+agreement (provided that it is probable that economic
+benefits will flow to the Group and the amount
+p.
+q.
+r.
+of revenue can be measured reliably). Royalty
+arrangements that are based on production, sales and
+other measures are recognised by reference to the
+underlying arrangement.
+Dividend and interest income
+Dividend income is recognised when the Group's
+right to receive the payment is established, which is
+generally when shareholders approve the dividend.
+Interest income from a financial asset is recognised
+when it is probable that the economic benefits will
+flow to the Group and the amount of income can be
+measured reliably. Interest income is accrued on a time
+basis, by reference to the principal outstanding and at
+the effective interest rate applicable, which is the rate
+that exactly discounts estimated future cash receipts
+through the expected life of the financial asset to that
+asset's net carrying amount on initial recognition.
+Government grants
+The Group recognises government grants only when
+there is reasonable assurance that the conditions
+attached to them will be complied with, and the grants
+will be received. When the grant relates to an expense
+item, it is recognised as income on a systematic basis
+over the periods that the related costs, for which it
+is intended to compensate, are expensed. When the
+grant relates to an asset, the Company deducts such
+grant amount from the carrying amount of the asset.
+Employee benefits
+Defined benefit plans
+The Company operates a defined benefit gratuity plan
+which requires contribution to be made to a separately
+administered fund.
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method
+with actuarial valuations being carried out at the end
+of each annual reporting period. The present value
+of the defined benefit obligation is determined by
+discounting the estimated future cash outflows by
+reference to market yields at the end of the reporting
+period on government bonds. The currency and
+term of the government bonds shall be consistent
+with the currency and estimated term of the post-
+employment benefit obligations. The current service
+cost of the defined benefit plan, recognised in the
+profit or loss as employee benefits expense, reflects
+the increase in the defined benefit obligation resulting
+from employee service in the current year, benefit
+changes, curtailments and settlements. Past service
+Annual Report 2020-21
+203
+Sun Pharmaceutical Industries Limited
+CARE
+Revenue from services rendered is recognised in the
+profit or loss as the underlying services are performed.
+Upfront non-refundable payments received are
+deferred and recognised as revenue over the expected
+period over which the related services are expected to
+be performed.
+Notes to the Consolidated Financial Statements
+Rendering of services
+Contract liabilities
+Profit Sharing Revenues
+The Company from time to time enters into
+arrangements for the sale of its products in certain
+markets. Under such arrangements, the Company
+sells its products to the business partners at a base
+purchase price agreed upon in the arrangement and is
+also entitled to a profit share which is over and above
+the base purchase price. The profit share is typically
+dependent on the ultimate net sale proceeds or net
+profits, subject to any reductions or adjustments that
+are required by the terms of the arrangement.
+Revenue in an amount equal to the base purchase
+price is recognised in these transactions upon delivery
+of products to the business partners. An additional
+amount representing the profit share component is
+recognised as revenue only to the extent that it is
+highly probable that a significant reversal will not
+occur.
+Out-licensing arrangements
+Revenues include amounts derived from product out-
+licensing agreements. These arrangements typically
+consist of an initial up-front payment on inception of
+the license and subsequent payments dependent on
+achieving certain milestones in accordance with the
+terms prescribed in the agreement. Non-refundable
+up-front license fees received in connection with
+product out-licensing agreements are deferred and
+recognised over the period in which the Company
+has continuing performance obligations. Milestone
+payments which are contingent on achieving certain
+clinical milestones are recognised as revenues either
+on achievement of such milestones, if the milestones
+are considered substantive, or over the period the
+Company has continuing performance obligations,
+if the milestones are not considered substantive. If
+milestone payments are creditable against future
+royalty payments, the milestones are deferred and
+released over the period in which the royalties are
+anticipated to be received.
+Sales returns
+The Group accounts for sales returns accrual by
+recording an allowance for sales returns concurrent
+with the recognition of revenue at the time of a
+product sale. This allowance is based on the Group's
+estimate of expected sales returns. With respect to
+established products, the Group considers its historical
+experience of sales returns, levels of inventory in the
+distribution channel, estimated shelf life, product
+202
+Financial Statements
+Consolidated Accounts
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+discontinuances, price changes of competitive
+products, and the introduction of competitive new
+products, to the extent each of these factors impact
+the Group's business and markets. With respect to new
+products introduced by the Group, such products have
+historically been either extensions of an existing line of
+product where the Group has historical experience or
+in therapeutic categories where established products
+exist and are sold either by the Company or the
+Company's competitors.
+Contract balances
+Contract assets
+A contract asset is the right to consideration in
+exchange for goods or services transferred to the
+customer. If the Group performs by transferring goods
+or services to a customer before the customer pays
+consideration or before payment is due, a contract
+asset is recognised for the earned consideration that is
+conditional.
+Trade receivables
+A receivable represents the Group's right to an amount
+of consideration that is unconditional (i.e., only the
+passage of time is required before payment of the
+consideration is due).
+A contract liability is the obligation to transfer goods
+or services to a customer for which the Group has
+received consideration (or an amount of consideration
+is due) from the customer. If a customer pays
+consideration before the Group transfers goods
+or services to the customer, a contract liability is
+recognised when the payment is made or the payment
+is due (whichever is earlier). Contract liabilities are
+recognised as revenue when the Group performs
+under the contract
+In determining the transaction price, the Group
+considers the effects of variable consideration, the
+existence of significant financing components, non-
+cash consideration, and consideration payable to
+the customer (if any). The Group estimates variable
+consideration at contract inception until it is highly
+probable that a significant revenue reversal in the
+amount of cumulative revenue recognised will not
+occur when the associated uncertainty with the
+variable consideration is subsequently resolved.
+for the year ended March 31, 2021
+Termination benefits
+Deferred tax is measured at the tax rates that are
+expected to be applied to the temporary differences
+when they reverse, based on the laws that have been
+enacted or substantively enacted by the end of the
+reporting period. Deferred tax assets and liabilities are
+offset if there is a legally enforceable right to set off
+corresponding current tax assets against current tax
+liabilities and the deferred tax assets and deferred tax
+liabilities relate to income taxes levied by the same tax
+authority on the Company.
+The Company recognises a deferred tax asset arising
+from unused tax losses or tax credits only to the
+extent that the entity has sufficient taxable temporary
+differences or there is convincing other evidence that
+sufficient taxable profit will be available against which
+the unused tax losses or unused tax credits can be
+utilised by the entity.
+A deferred tax asset is recognised to the extent
+that it is probable that future taxable profits will be
+available against which the temporary difference can
+be utilised. Deferred tax assets are reviewed at each
+reporting date and are reduced to the extent that it
+is no longer probable that the related tax benefit will
+be realised. Withholding tax arising out of payment
+of dividends to shareholders under the Indian Income
+tax regulations is not considered as tax expense for
+the Company and all such taxes are recognised in the
+consolidated statement of changes in equity as part of
+the associated dividend payment.
+Minimum Alternate Tax ('MAT') credit is recognised as
+deferred tax asset only when and to the extent there is
+convincing evidence that the Company will pay normal
+income tax during the period for which the MAT credit
+can be carried forward for set-off against the normal
+tax liability. MAT credit recognised as an asset is
+reviewed at each Balance Sheet date and written down
+to the extent the aforesaid convincing evidence no
+longer exists.
+u.
+V.
+W.
+Accruals for uncertain tax positions require
+management to make judgments of potential
+exposures. Accruals for uncertain tax positions are
+measured using either the most likely amount or the
+expected value amount depending on which method
+the entity expects to better predict the resolution of
+the uncertainty. Tax benefits are not recognised unless
+the management based upon its interpretation of
+applicable laws and regulations and the expectation of
+how the tax authority will resolve the matter concludes
+that such benefits will be accepted by the authorities.
+Once considered probable of not being accepted,
+management reviews each material tax benefit and
+reflects the effect of the uncertainty in determining
+the related taxable amounts.
+Earnings per share
+The parent company presents basic and diluted
+earnings per share ("EPS") data for its equity shares.
+Basic EPS is calculated by dividing the profit or loss
+attributable to equity shareholders of the parent
+company by the weighted average number of equity
+shares outstanding during the period. Diluted EPS is
+determined by adjusting the profit or loss attributable
+to equity shareholders and the weighted average
+number of equity shares outstanding for the effects of
+all dilutive potential ordinary shares, which includes all
+stock options granted to employees.
+The number of equity shares and potentially dilutive
+equity shares are adjusted retrospectively for all
+periods presented for any share splits and bonus
+shares issues including for changes effected prior to
+the approval of the financial statements by the Board
+of Directors.
+Exceptional items
+Exceptional items refer to items of income or expense,
+including tax items, within the statement of profit and
+loss from ordinary activities which are non-recurring
+and are of such size, nature or incidence that their
+separate disclosure is considered necessary to explain
+the performance of the Company.
+Recent Accounting pronouncements
+Standards issued but not yet effective and not early
+adopted by the Company
+The Ministry of Corporate Affairs ("MCA") notifies new
+standard or amendments to the existing standards.
+There is no such notification which would have been
+applicable from April 01, 2021.
+Annual Report 2020-21
+205
+Sun Pharmaceutical Industries Limited
+Deferred tax is recognised on temporary differences
+between the carrying amounts of assets and liabilities
+in the consolidated financial statements and the
+corresponding tax bases used in the computation
+of taxable profit. Deferred tax is not recognised for
+the temporary differences that arise on the initial
+recognition of assets or liabilities in a transaction that
+is not a business combination and that affects neither
+accounting nor taxable profits and taxable temporary
+differences arising upon the initial recognition of
+goodwill.
+costs are recognised in profit or loss in the period of
+a plan amendment. The net interest cost is calculated
+by applying the discount rate to the net balance of
+the defined benefit obligation and the fair value of
+plan assets. This cost is included in employee benefit
+expense in profit or loss. Actuarial gains and losses
+arising from experience adjustments and changes
+in actuarial assumptions are charged or credited to
+OCI in the period in which they arise and is reflected
+immediately in retained earnings and is not reclassified
+to profit or loss.
+basis, or to realise the asset and settle the liability
+simultaneously.
+for the year ended March 31, 2021
+Termination benefits are recognised as an expense in
+the statement of profit and loss when the Company is
+demonstrably committed, without realistic possibility
+of withdrawal, to a formal detailed plan to either
+terminate employment before the normal retirement
+date, or to provide termination benefits as a result of
+an offer made to encourage voluntary redundancy.
+Termination benefits for voluntary redundancies are
+recognised as an expense in the statement of profit
+and loss if the Company has made an offer encouraging
+voluntary redundancy, it is probable that the offer will
+be accepted, and the number of acceptances can be
+estimated reliably.
+Short-term and Other long-term employee benefits
+Accumulated leave, which is expected to be utilised
+within the next 12 months, is treated as short-term
+employee benefit. The Company measures the
+expected cost of such absences as the additional
+amount that it expects to pay as a result of the unused
+entitlement that has accumulated at the reporting
+date.
+The Group treats accumulated leave expected to be
+carried forward beyond twelve months, as long-term
+employee benefit for measurement purposes. Such
+long-term compensated absences are provided for
+based on the actuarial valuation using the projected
+unit credit method at the year-end. Actuarial gains/
+losses are immediately taken to the consolidated
+statement of profit and loss and are not deferred.
+The Group's net obligation in respect of other long
+term employee benefits is the amount of future benefit
+that employees have earned in return for their service
+in the current and previous periods. That benefit is
+discounted to determine its present value.
+Defined contribution plans
+The Group's contributions to defined contribution
+plans are recognised as an expense as and when the
+S.
+t.
+services are received from the employees entitling
+them to the contributions. The Group does not have
+any obligation other than the contribution made.
+Share-based payment arrangements
+The grant date fair value of options granted to
+employees is recognised as an employee expense,
+with a corresponding increase in equity, on a straight
+line basis, over the vesting period, based on the
+Group's estimate of equity instruments that will
+eventually vest. At the end of each reporting period,
+the Group revises its estimate of the number of equity
+instruments expected to vest. The impact of the
+revision of the original estimates, if any, is recognised
+in profit or loss such that the cumulative expense
+reflects the revised estimate, with a corresponding
+adjustment to the equity-settled employee benefits
+reserve.
+For cash-settled share-based payments, a liability
+is recognised for the goods or services acquired,
+measured initially at the fair value of the liability. At
+the end of each reporting period until the liability is
+settled, and at the date of settlement, the fair value
+of the liability is remeasured, with any changes in fair
+value recognised in profit or loss for the year.
+Borrowing costs
+Borrowing costs that are directly attributable to the
+construction or production of a qualifying asset are
+capitalised as part of the cost of that asset. All other
+borrowing costs are expensed in the period in which
+they occur. Borrowing costs consist of interest and
+other costs that an entity incurs in connection with
+the borrowing of funds. Borrowing cost also includes
+exchange differences to the extent regarded as an
+adjustment to the borrowing costs. A qualifying asset
+is one that necessarily takes substantial period of time
+to get ready for its intended use.
+Income tax
+Income tax expense consists of current and deferred
+tax. Income tax expense is recognised in profit or
+loss except to the extent that it relates to items
+recognised in OCI or directly in equity, in which case it
+is recognised in OCI or directly in equity respectively.
+Current tax is the expected tax payable on the
+taxable profit for the year, using tax rates enacted
+or substantively enacted by the end of the reporting
+period, and any adjustment to tax payable in respect of
+previous years. Current tax assets and tax liabilities are
+offset where the Company has a legally enforceable
+right to offset and intends either to settle on a net
+204
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated Accounts
+CARE
+Revenue from contracts with customers is recognised
+when control of the goods or services are transferred
+to the customer at an amount that reflects the
+consideration to which the Group expects to be
+entitled in exchange for those goods or services. The
+Group has generally concluded that it is the principal
+in its revenue arrangements, since it is the primary
+obligor in all of its revenue arrangement, as it has
+pricing latitude and is exposed to inventory and credit
+risks. Revenue is stated net of goods and service tax
+and net of returns, chargebacks, rebates and other
+similar allowances. These are calculated on the basis
+of historical experience and the specific terms in the
+individual contracts.
+Revenue
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+k.
+Treasury shares
+The Group has created an Employee Benefit Trust
+(EBT) for providing share-based payment to its
+employees. The Group uses EBT as a vehicle for
+distributing shares to employees under the employee
+remuneration schemes. The Group treats EBT as
+its extension and shares held by EBT are treated as
+treasury shares.
+Own equity instruments that are reacquired (treasury
+shares) are deducted from equity. No gain or loss is
+recognised in profit or loss on the purchase, sale, issue
+or cancellation of the Group's own equity instruments.
+Consideration paid or received shall be recognised
+directly in equity.
+Dividend distribution to equity holders of the parent
+Final dividend on equity shares (including dividend tax
+on distribution of such dividends, if any) are recorded
+as a liability on the date of their approval by the
+shareholders and interim dividends are recorded as a
+liability on the date of declaration by the Company's
+Board of Directors. As per the corporate laws in India,
+a distribution of final dividend is authorised when it
+is approved by the shareholders. A corresponding
+amount is recognised directly in equity.
+Leases
+The Company assesses at contract inception whether
+a contract is, or contains, a lease. That is, if the
+contract conveys the right to control the use of an
+identified asset for a period of time in exchange for
+consideration. To assess whether a contract conveys
+the right to control the use of an identified asset, the
+Company assesses whether: (i) the contract involves
+the use of an identified asset (ii) the Company has
+substantially all of the economic benefits from use of
+the asset through the period of the lease and (iii) the
+Company has the right to direct the use of the asset.
+Company as a lessee
+The Company applies a single recognition and
+measurement approach for all leases, except for
+short-term leases and leases of low-value assets. The
+Company recognises lease liabilities to make lease
+payments and right-of-use assets representing the
+right to use the underlying assets.
+i)
+Right-of-use assets
+The Company recognises right-of-use assets at
+the commencement date of the lease (i.e., the
+date the underlying asset is available for use).
+Right-of-use assets are measured at cost, less
+any accumulated depreciation and impairment
+losses, and adjusted for any remeasurement of
+lease liabilities. The cost of right-of-use assets
+includes the amount of lease liabilities recognised,
+initial direct costs incurred, and lease payments
+made at or before the commencement date less
+any lease incentives received. Right-of-use assets
+are depreciated on a straight-line basis over the
+shorter of the lease term and the estimated useful
+lives of the assets, as follows:
+. Leasehold land
+Building
+Plant and Machinery
+Furniture and Fixture
+Vehicles
+. Office Equipment
+49-196 years
+1-99 years
+1-5 years
+CARE
+5 years
+Sun Pharmaceutical Industries Limited
+Annual Report 2020-21
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+principal only swap, options and interest rate swaps
+to hedge its foreign currency risks and interest rate
+risks respectively. Such derivative financial instruments
+are initially recognised at fair value on the date on
+which a derivative contract is entered into and are
+subsequently re-measured at fair value at the end
+of each reporting period. Derivatives are carried as
+financial assets when the fair value is positive and as
+financial liabilities when the fair value is negative.
+Any gains or losses arising from changes in the fair
+value of derivatives are taken directly to profit or loss,
+except for the effective portion of cash flow hedges,
+which is recognised in OCI and later reclassified to
+profit or loss when the hedge item affects profit or
+loss or treated as basis adjustment if a hedged forecast
+transaction subsequently results in the recognition of a
+non-financial asset or non-financial liability.
+For the purpose of hedge accounting, hedges are
+classified as:
+• Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+• Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable to
+a particular risk associated with a recognised asset
+or liability or a highly probable forecast transaction
+or the foreign currency risk in an unrecognised firm
+commitment
+Hedges of a net investment in a foreign operation.
+At the inception of a hedge relationship, the Group
+formally designates and documents the hedge
+relationship to which the Group wishes to apply
+hedge accounting and the risk management objective
+and strategy for undertaking the hedge. The
+documentation includes the Group's risk management
+objective and strategy for undertaking hedge, the
+hedging/economic relationship, the hedged item or
+transaction, the nature of the risk being hedged, hedge
+ratio and how the entity will assess the effectiveness
+of changes in the hedging instrument's fair value in
+offsetting the exposure to changes in the hedged item's
+fair value or cash flows attributable to the hedged risk.
+Such hedges are expected to be highly effective in
+achieving offsetting changes in fair value or cash flows
+and are assessed on an ongoing basis to determine that
+they actually have been highly effective throughout
+the financial reporting periods for which they were
+designated.
+Hedges that meet the strict criteria for hedge
+accounting are accounted for, as described below:
+Fair value hedges
+Changes in fair value of the designated portion of
+derivatives that qualify as fair value hedges are
+recognised in profit or loss immediately, together
+with any changes in the fair value of the hedged
+asset or liability that are attributable to the
+hedged risk.
+(ii) Cash flow hedges
+The effective portion of changes in the fair value
+of the hedging instrument is recognised in OCI in
+the cash flow hedge reserve, while any ineffective
+portion is recognised immediately in profit or loss.
+The Group uses forward currency contracts as
+hedges of its exposure to foreign currency risk
+in forecast transactions and firm commitments.
+Amounts recognised as OCI are transferred
+to profit or loss when the hedged transaction
+affects profit or loss, such as when a forecast sale
+occurs. When the hedged item is the cost of a
+non-financial asset or non-financial liability, the
+amounts recognised as OCI are transferred to the
+initial carrying amount of the non-financial asset
+or liability.
+If the hedging instrument expires or is sold,
+terminated or exercised or if its designation as a
+hedge is revoked, or when the hedge no longer
+meets the criteria for hedge accounting, any
+cumulative gain or loss previously recognised in
+OCI remains separately in equity until the forecast
+transaction occurs or the foreign currency firm
+commitment is met. When a forecast transaction
+is no longer expected to occur, the gain or loss
+accumulated in equity is recognised immediately
+in profit or loss.
+(iii) Net Investment Hedge
+The Group designates certain foreign currency
+liability as hedge against certain net investment
+in foreign subsidiaries. Hedges of net investments
+in foreign operations are accounted similar to
+cash flow hedges. Any gain or loss on the hedging
+instrument relating to the effective portion of
+the hedge is recognised in other comprehensive
+income and held in foreign currency translation
+reserve ('FCTR')- a component of equity.
+The ineffective portion of the gain or loss on
+these hedges is immediately recognised in the
+consolidated statement of profit and loss. The
+amounts accumulated in equity are included in
+the statement of profit and loss when the foreign
+operation is disposed or partially disposed.
+199
+Sale of goods
+1-5 years
+years
+Provisions, contingent liabilities and contingent assets
+Provisions are recognised when the Group has a
+present obligation (legal or constructive) as a result of
+past event, it is probable that an outflow of resources
+embodying economic benefits will be required to
+settle the obligation and a reliable estimate can be
+made of the amount of obligation. When the Company
+expects some or all of a provision to be reimbursed,
+for example, under an insurance contract, the
+reimbursement is recognised as a separate asset, but
+only when the reimbursement is certain. The expense
+relating to a provision is presented in the consolidated
+statement of profit and loss net of any reimbursement.
+If the effect of the time value of money is material,
+provisions are determined by discounting the expected
+future cash flows at a pre-tax rate that reflects current
+market assessments of the time value of money and
+the risks specific to the liability. Where discounting is
+used, the increase in the provision due to the passage
+of time is recognised as a finance cost.
+Restructuring
+A provision for restructuring is recognised when the
+Group has a detailed formal restructuring plan and has
+raised a valid expectation in those affected that it will
+carry out the restructuring by starting to implement
+the plan or announcing its main features to those
+affected by it. The measurement of a restructuring
+provision includes only the direct expenditure arising
+from the restructuring, which are those amounts that
+are both necessarily entailed by the restructuring and
+not associated with the ongoing activities of the entity.
+Onerous contracts
+Present obligations arising under onerous contracts are
+recognised and measured as provisions. An onerous
+contract is considered to exist where the Group has
+a contract under which the unavoidable costs of
+meeting the obligations under the contract exceed the
+201
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+O.
+economic benefit expected to be received from the
+contract.
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+(i)
+Possible obligations which will be confirmed only
+by future events not wholly within the control of
+the Company, or
+(ii) Present obligations arising from past events
+where it is not probable that an outflow of
+resources will be required to settle the obligation
+or a reliable estimate of the amount of the
+obligation cannot be made.
+Contingent assets are not recognised in the
+consolidated financial statements. A contingent asset
+is disclosed where an inflow of economic benefits is
+probable. Contingent assets are assessed continually
+and, if it is virtually certain that an inflow of economic
+benefits will arise, the asset and related income are
+recognised in the period in which the change occurs
+For the purpose of the consolidated statement of
+cash flows, cash and cash equivalents consist of cash
+and short-term deposits, as defined above, net of
+outstanding bank overdrafts as they are considered an
+integral part of the Company's cash management.
+5
+Cash and cash equivalent in the consolidated balance
+sheet comprise cash at banks and on hand and
+short-term deposits with an original maturity of three
+months or less, which are subject to an insignificant
+risk of changes in value.
+n.
+The right-of-use assets are also subject to
+impairment. Refer to the accounting policies in
+section (g) Impairment of non-financial assets.
+Lease Liabilities
+At the commencement date of the lease, the
+Company recognises lease liabilities measured at
+the present value of lease payments to be made
+over the lease term. The lease payments include
+fixed payments (including insubstance fixed
+payments) less any lease incentives receivable,
+variable lease payments that depend on an index
+or a rate, and amounts expected to be paid under
+residual value guarantees. The lease payments
+also include the exercise price of a purchase
+option reasonably certain to be exercised by
+the Company and payments of penalties for
+terminating the lease, if the lease term reflects
+the Company exercising the option to terminate.
+In calculating the present value of lease payments,
+the Company uses its incremental borrowing rate
+at the lease commencement date because the
+interest rate implicit in the lease is not readily
+determinable. After the commencement date, the
+amount of lease liabilities is increased to reflect
+the accretion of interest and reduced for the lease
+payments made. In addition, the carrying amount
+of lease liabilities is remeasured if there is a
+modification, a change in the lease term, a change
+in the lease payments (e.g., changes to future
+payments resulting from a change in an index
+or rate used to determine such lease payments)
+or a change in the assessment of an option to
+purchase the underlying asset.
+200
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+I.
+iii) Short-term leases and leases of low-value assets
+The Company applies the short-term lease
+recognition exemption to its short-term leases
+(i.e., those leases that have a lease term of 12
+months or less from the commencement date
+and do not contain a purchase option). It also
+applies the lease of low-value assets recognition
+exemption to leases that are considered to be
+low value. Lease payments on short-term leases
+and leases of low-value assets are recognised as
+expense on a straight-line basis over the lease
+term.
+Group as a lessor
+Rental income from operating lease is generally
+recognised on a straight-line basis over the term of the
+relevant lease. Where the rentals are structured solely
+to increase in line with expected general inflation to
+compensate for the Group's expected inflationary cost
+increases, such increases are recognised in the year in
+which such benefits accrue. Initial direct costs incurred
+in negotiating and arranging an operating lease are
+added to the carrying amount of the leased asset and
+recognised over the lease term on the same basis as
+rental income. Contingent rents are recognised as
+revenue in the period in which they are earned.
+Inventories
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade, stores
+and spares and finished goods are measured at the
+lower of cost and net realisable value. The cost of all
+categories of inventories is based on the weighted
+average method. Cost of raw materials and packing
+materials, stock-in-trade, stores and spares includes
+cost of purchases and other costs incurred in bringing
+the inventories to its present location and condition.
+Cost of work-in-progress and finished goods comprises
+direct material, direct labour and an appropriate
+proportion of variable and fixed overhead expenditure.
+Net realisable value is the estimated selling price in the
+ordinary course of business, less the estimated costs of
+completion and costs necessary to make the sale.
+The factors that the Company considers in determining
+the allowance for slow moving, obsolete and other
+non-saleable inventory include estimated shelf life,
+planned product discontinuances, price changes,
+ageing of inventory and introduction of competitive
+new products, to the extent each of these factors
+impact the Company's business and markets. The
+Company considers all these factors and adjusts the
+inventory provision to reflect its actual experience on a
+periodic basis
+Annual Report 2020-21
+m.
+Cash and cash equivalents
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+NOTE: 3A(1) PROPERTY, PLANT AND EQUIPMENT
+Transfer from Lease to
+Buildings
+Eliminated on disposals of
+assets
+As at March 31, 2021
+Carrying amount
+As at March 31, 2020
+707.1
+0.0
+4,250.5
+4,425.5
+206
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+NOTE: 3A(II) RIGHT OF USE ASSETS
+Financial Statements
+Consolidated Accounts
+* in Million
+Leasehold
+land
+Buildings
+Plant and
+equipment
+Furniture
+and fixtures
+Consolidation adjustments
+Depreciation expense
+Vehicles
+As at March 31, 2020
+Eliminated on disposals of
+assets
+4,425.5
+At cost or deemed cost
+As at March 31, 2019
+Consolidation adjustments
+Additions
+Disposals
+Reclassified to Right-of-use
+assets
+As at March 31, 2020
+Consolidation adjustments
+Additions
+Transfer from Lease to
+Buildings
+Disposals
+As at March 31, 2021
+Accumulated depreciation
+and impairment
+As at March 31, 2019
+Consolidation adjustments
+Depreciation expense
+Impairment losses
+recognised in profit or loss
+Reclassified to Right-of-use
+assets
+893 3833
+Office
+equipment
+At cost or deemed cost
+Disposals
+(933.3)
+(450.9)
+(80.5)
+(1,464.7)
+As at March 31, 2020
+2,609.1
+2,064.9
+9.1
+6.6
+2,128.9
+38.2
+6,856.8
+Consolidation adjustments
+(41.6)
+12.8
+(0.3)
+(6.6)
+(45.2)
+313.1
+3,280.4
+Total
+1,037.7
+2,020.8
+As at March 31, 2019
+Reclassified from Property, plant
+2,355.5
+892.9
+8.3
+2.7
+1,358.5
+110.1
+4,728.0
+and equipment
+Consolidation adjustments
+35.1
+84.5
+0.8
+0.5
+183.6
+8.6
+Additions
+218.5
+3.4
+(302.6)
+|_||
+39 33
+་ །
+NHD Aria
+17
+332.5
+ཧཱུྃ་སྟཙྪ༔རྞྞ ྃ། ། ༄་། ། ་ ་ །༄ ་་ ་ ། ་ །༄ ་་ ་་ ་་ ་ ་ ་ ་ ་ ་ ་
+8.3
+161.5
+(8.3)
+(51.7)
+Fa།-་་་་་
+Plant and
+equipment
+Plant and
+equipment equipment
+Taken
+under
+Finance
+Lease*
+98,107.4
+་་ ་་་་་་ ་་ ་ ་ ་ ་ ་ ་ ་ ་ ་ ་ ་། །་།་
+། ཟླ།་ །་ ༄་ ིཟེ་ཟླ
+2,772.9
+་་རྞྞ་། ིི ིིg
+185,797.4
+* In Million
+Total
+Ju
+Vehicles
+Vehicles
+taken
+under
+Finance
+Lease
+Office
+equipment
+110.1 167,554.7
+5,248.6
+11,312.0
+(1,401.9)
+(4,728.0)
+177,985.4
+(185.0)
+9,634.6
+།་་།
+(1,637.6)
+161111111
+9,215.1
+(348.9)
+(1,183.0)
+ས་ ་ ། ་ ་ ་ ་ ་ ་ ་ ་་ ་ ་ ་
+46,501.2
+2,034.7
+7,378.2
+1.4
+398
+302.6 14,507.3
+199.9
+(300.9)
+231.1 55,614.6
+(19.9)
+(215.6)
+339.0
+8,110.1
+3838
+(1,048.4)
+63,015.3
+333.9 54,131.9
+53,273.7
+(0.4)
+(81.5)
+(536.2)
+7,372.2
+116,289.0
+Best. 391 351973,
+Buildings
+taken
+Buildings
+given
+land
+Freehold Leasehold
+land
+Buildings under
+under
+(87.2)
+finance operating
+Lease* lease
+519.2
+4,151.5
+2,355.5
+1998
+(2,355.5)
+4,250.5
+565.0 109,746.5
+(11.9)
+353.3
+|
+93.9
+Notes to the Consolidated Financial Statements
+61,531.3
+Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investments in
+equity instruments in other comprehensive income. This amount will be reclassified to retained earnings on derecognition
+of equity instrument.
+Foreign currency translation reserve - Exchange differences relating to the translation of the results and net assets of the
+Group's foreign operations from their functional currencies to the Group's presentation currency (i.e. *) are recognised
+directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange difference
+in the foreign currency translation reserve are reclassified to consolidated statement of profit and loss on the disposal of
+the foreign operation.
+Annual Report 2020-21
+215
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gain
+or loss arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges.
+The cumulative gain or loss arising on the changes of the fair value of the designated portion of the hedging instruments
+that are recognised and accumulated under the cash flow hedges reserve will be reclassified to profit or loss only when the
+hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged item.
+NOTE : 21 BORROWINGS (NON-CURRENT)
+Term loans
+From banks (unsecured)
+From department of biotechnology (secured)
+Debt instrument through OCI - This represents the cumulative gain and loss arising on fair valuation of debt instruments
+measured through other comprehensive income. This amount will be reclassified to the consolidated statement of profit
+and loss account on derecognition of debt instrument.
+From others (secured)
+Refer note 66 for borrowings (non-current)
+NOTE : 22 OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Other financial liabilities
+NOTE : 23 PROVISIONS (NON-CURRENT)
+Employee benefits
+Others (Refer note 60)
+NOTE : 24 OTHER NON-CURRENT LIABILITIES
+Deferred revenue (Refer note 53)
+Others
+216
+As at
+March 31, 2021
+Lease liabilities (Refer note 54)
+in Million
+As at
+March 31, 2020
+Capital redemption reserve - The Group has recognised capital redemption reserve on buyback of equity shares from its
+retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.
+Legal reserve - The reserve has been created by an overseas subsidiaries in compliance with requirements of local laws.
+General reserve: The reserve arises on transfer of portion of the net profit pursuant to the earlier provisions of Companies
+Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
+Securities premium - The amount received in excess of face value of the equity shares is recognised in securities premium.
+In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal
+value of share is accounted as securities premium. It is utilised in accordance with the provisions of the Companies Act,
+2013.
+77.2
+83.5
+Legal reserve
+General reserve
+Retained earnings
+B) Items of other comprehensive income (OCI)
+Debt instrument through other comprehensive income
+Equity instrument through other comprehensive income
+Foreign currency translation reserve
+Effective portion of cash flow hedges
+Financial Statements
+Consolidated Accounts
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.
+3,681.7
+11,874.1
+43.8
+7.5
+285.5
+43.8
+7.5
+230.5
+35,621.0
+365,980.9
+35,621.0
+353,200.5
+395.0
+3,891.1
+39,924.5
+523.4
+462,228.5
+(533.6)
+749.9
+45,799.0
+(429.2)
+450,245.2
+Refer consolidated statement of changes in equity for detailed movement in other equity balances.
+Nature and purpose of each reserve
+Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if
+any, is treated as capital reserve.
+3,681.7
+11,874.1
+Security deposits
+6,468.8
+54.1
+24.2
+Other loans
+From banks (unsecured)
+Commercial paper (unsecured)
+Refer note 67 for borrowings (current)
+NOTE : 26 OTHER FINANCIAL LIABILITIES (CURRENT)
+Financial Statements
+Consolidated Accounts
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2020
+3,333.8
+25,326.9
+7,108.8
+14,006.4
+From banks (unsecured)
+20,255.9
+24,449.0
+55,493.8
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+6,438.6
+Current maturities of long-term debt (Refer note 66)
+4,238.8
+Current maturities of lease liabilities (Refer note 54)
+Interest accrued
+1,016.7
+927.2
+47.1
+9,911.0
+17,714.3
+61.8
+Loans repayable on demand
+for the year ended March 31, 2021
+2,513.1
+8,981.3
+20,289.2
+As at
+March 31, 2021
+14.2
+178.2
+* in Million
+As at
+March 31, 2020
+6.4
+413.2
+4.5
+3.4
+195.8
+424.1
+As at
+March 31, 2021
+NOTE : 25 BORROWINGS (CURRENT)
+2,886.2
+385.0
+3,271.2
+As at
+March 31, 2020
+2,950.2
+2,159.8
+5,110.0
+As at
+March 31, 2021
+7,185.5
+333.8
+7,519.3
+* in Million
+As at
+March 31, 2020
+7,592.7
+216.0
+7,808.7
+Notes to the Consolidated Financial Statements
+* in Million
+55,152.3
+155.9
+Payables on purchase of property, plant and equipment
+260.0
+246.7
+138.2
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through other comprehensive
+income
+561.8
+2,560.4
+Dividend income on investments
+3,546.2
+2,111.3
+275.8
+389.8
+Others (includes interest on income tax refund)
+205.3
+Net gain arising on financial assets measured at fair value through profit or loss
+Net gain on disposal of property, plant and equipment and other intangible assets
+Sundry balances written back, net
+49.3
+1,749.1
+1,289.8
+Investments in debt instruments at fair value through other comprehensive income
+1,178.1
+137.9
+65.2
+Loans at amortised cost
+317.2
+Bank deposits at amortised cost
+Interest income on:
+Year ended
+March 31, 2020
+in Million
+Year ended
+March 31, 2021
+NOTE: 31 OTHER INCOME
+Other financial assets carried at amortised cost
+5,123.3
+328,375.0
+2,197.6
+161.2
+587.8
+(28,936.0)
+27,837.8
+55,662.7
+28,936.0
+65,829.0
+208.0
+(33,441.7)
+Year ended
+March 31, 2020
+* in Million
+March 31, 2021
+Year ended
+218
+Inventories at the end of the year
+Foreign currency translation difference
+Purchases during the year
+Inventories at the beginning of the year
+Raw materials and packing materials
+571.9
+NOTE: 32 COST OF MATERIALS CONSUMED
+8,355.2
+1,008.9
+559.0
+Miscellaneous income
+123.4
+97.8
+213.6
+146.9
+Lease rental and hire charges
+Insurance claims
+52.2
+122.8
+34.7
+6,359.8
+152.2
+323,251.7
+334,981.4
+* in Million
+As at
+March 31, 2021
+Annual Report 2020-21
+Others (Refer note 60 and 61)
+Employee benefits
+NOTE : 28 PROVISIONS (CURRENT)
+Others
+Deferred revenue (Refer note 53)
+Advance from customers (Refer note 53)
+Statutory remittances
+NOTE : 27 OTHER CURRENT LIABILITIES
+* Include claims, recall charges, contractual and expected milestone obligations, trade and other commitments (also refer note 61).
+18,887.3
+As at
+March 31, 2020
+42,373.5
+25,965.7
+Others*
+6,439.1
+7,336.1
+13.0
+29.2
+971.5
+115.0
+Payables to employee
+Derivatives not designated as hedges
+Derivatives designated as hedges
+808.5
+3,385.5
+2,966.1
+* in Million
+Year ended
+March 31, 2020
+5,086.7
+471.9
+1,671.0
+4,158.8
+526.8
+3,589.6
+331,391.8
+Year ended
+March 31, 2021
+Revenue from contracts with customers (Refer note 53)
+Other operating revenues
+2,020.3
+2,020.3
+As at
+March 31, 2020
+in Million
+1,790.8
+1,790.8
+March 31, 2021
+As at
+NOTE: 30 REVENUE FROM OPERATIONS
+Provision for income tax [Net of advance income tax]
+50.3
+7,279.9
+NOTE : 29 CURRENT TAX LIABILITIES (NET)
+Unpaid dividends
+CARE
+Sun Pharmaceutical Industries Limited
+217
+38,363.6
+3,703.5
+34,660.1
+As at
+March 31, 2020
+* in Million
+4,588.7
+41,237.8
+45,826.5
+March 31, 2021
+As at
+60.1
+6,462.9
+1,717.2
+for the year ended March 31, 2021
+2,434.2
+0.4
+278.3
+2.9
+As at
+March 31, 2020
+March 31, 2021
+As at
+* in Million
+210
+3.4
+Secured, considered good
+Unsecured, considered good
+NOTE : 7 LOANS (NON-CURRENT)
+* Includes investment in various small denomination U.S Treasuries, certificate of deposits and commercial papers.
+1,128.8
+1,122.8
+Aggregate amount of impairment in value of investments
+impairment
+Loans to employees/others
+8,342.9
+4.2
+7.1
+Capital advances
+NOTE : 10 OTHER NON-CURRENT ASSETS
+* Includes amount paid under protest
+Advance income tax (net of provisions)*
+NOTE : 9 INCOME TAX ASSET (NET) [NON-CURRENT]
+Unbilled revenue (Refer note 53)
+4.5
+Derivatives not designated as hedges
+Margin money/ security against guarantees/ commitments
+Deposits
+NOTE : 8 OTHER FINANCIAL ASSETS (NON-CURRENT)
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+7.9
+Security deposits - unsecured, considered good
+10,800.1
+Aggregate amount of unquoted investments before
+42,813.8
+163,131
+148.9
+142,393
+64.3
+61,809
+26,808.9
+170.2
+35,282.2
+4,704.3
+0.0
+452.6
+1,718.3
+5.8
+* in Million
+7,409.1
+16,000,000
+10,000,000
+1,284.1
+800.9
+16,000,000
+10,000,000
+52,541.0
+Aggregate amount of quoted investments at market
+value
+42,813.8
+52,541.0
+Aggregate book value (carrying value) of quoted
+investments
+50,027.9
+62,218.3
+7,208.3
+9,072.4
+Unquoted - At fair value through Profit or Loss
+531.4
+700,000
+565.7
+700,000
+1,109.3
+735.8
+Prepaid expenses
+Balances with government authorities*
+Other assets
+* Includes amount paid under protest
+27,248.5
+29,756.3
+15,890.8
+18,292.9
+28,936.0
+33,441.7
+7,325.2
+32,862.7
+579.0
+As at
+March 31, 2020
+in Million
+As at
+March 31, 2021
+6,200.9
+5,367.4
+1.7
+28,608.8
+327.2
+5,584.8
+81.6
+7,406.8
+In government securities
+NOTE : 12 INVESTMENTS (CURRENT)
+(ii) The cost of inventories recognised as an expense is disclosed in notes 32, 33 and 36 and as purchases of stock-in-
+trade in the consolidated statement of profit and loss.
+Inventory write downs are accounted, considering the nature of inventory, estimated shelf life, planned product
+discontinuances, price changes, ageing of inventory and introduction of competitive new products as well as
+provisioning policy of the Company. Write downs of inventories amounted to $20,106.6 Million (March 31, 2020:
+*20,762.3 Million). The changes in write downs are recognised as an expense in the consolidated statement of profit
+and loss.
+(i)
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+CARE
+Sun Pharmaceutical Industries Limited
+211
+78,749.9
+89,970.2
+949.5
+1,072.5
+140.3
+5,725.1
+1,745.1
+As at March 31, 2020
+Quantity
+53.6
+1,656.0
+As at
+March 31, 2020
+March 31, 2021
+As at
+As at
+* in Million
+Consolidated Accounts
+Financial Statements
+March 31, 2020
+Annual Report 2020-21
+Goods-in-transit
+Stock-in-trade
+Finished goods
+Work-in-progress
+Lower of cost and net realisable value
+Raw materials and packing materials
+Goods-in-transit
+NOTE: 11 INVENTORIES
+Stores and spares
+0.9
+0.9
+3.0
+* in Million
+44.7
+3,577.6
+As at
+March 31, 2021
+33,842.5
+33,842.5
+As at
+March 31, 2020
+* in Million
+34,327.8
+34,327.8
+As at
+March 31, 2021
+434.1
+1,048.8
+957.8
+305.5
+2.0
+610.8
+649.4
+4,489.6
+204.9
+* in Million
+As at March 31, 2021
+Quantity
+48,265
+Crinetics Pharmaceuticals Inc.
+1,210.0
+2,167,679
+1,054.4
+2,167,679
+53.9
+scPharmaceuticals Inc.
+2,981.5
+914,107
+5,151.1
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+NOTE : 5 INVESTMENT IN JOINT VENTURE (NON-CURRENT)
+Shares of USD 0.00001 each fully paid
+48,265
+53.5
+Shares of USD 0.001 each
+50.2
+22,498
+Replimune Group Inc.
+Shares of USD 0.001 each
+12.3
+25,900
+22.4
+25,900
+194.4
+60,755
+274.1
+30,755
+Magneta Therapeutics Inc.
+Shares of CHF 0.03 each
+Crispr Therapeutics AG
+(Carrying amount determined using equity method of
+accounting)
+22,498
+Unquoted, fully paid
+Artes Biotechnology GmbH
+As at March 31, 2020
+* in Million
+Quantity
+* in Million
+2,868,623
+1,412.2
+As at March 31, 2021
+Quantity
+2,868,623
+Shares of USD 0.01 each fully paid
+Krebs Biochemicals and Industries Limited
+1,050,000
+90.2
+1,050,000
+81.6
+753.0
+275.7
+278.3
+275.7
+Aggregate carrying value of unquoted investments
+NOTE: 6 INVESTMENTS (NON-CURRENT)
+In equity instruments
+Quoted - At fair value through other comprehensive
+income
+Amneal Pharmaceuticals Inc.
+As at March 31, 2021
+Quantity
+* in Million
+Financial Statements
+Consolidated Accounts
+As at March 31, 2020
+Quantity
+* in Million
+15,853
+278.3
+15,853
+275.7
+914,107
+Investments in equity instruments
+Quoted - At fair value through other comprehensive
+income
+16.9
+lovance Biotherapeutics Inc.
+209
+Annual Report 2020-21
+(194.3)
+(188.3)
+Less: Impairment in value of investment
+194.3
+Sun Pharmaceutical Industries Limited
+38,894
+38,894
+Reanal Finomvegyszergyar Zrt.
+(0.5)
+(0.5)
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+188.3
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+State Bank of India 4.875% Notes maturing April 17, 2024
+In venture funds
+National Highways Authority of India - 8.2% Bonds of
+*1,000 each fully paid of maturing on January 25, 2022
+Power Finance Corporation Ltd (Series I) - 8.2% Bonds of
+*1,000 each fully paid maturing on February 01, 2022
+Indian Railway Finance Corporation Ltd - 8/8.15% Bonds
+of 1,000 each fully paid maturing on February 23, 2022
+ONGC Videsh 4.625% Regd. Notes maturing July 15, 2024
+NTPC 4.375% Regd. Euro Medium Term Notes maturing
+November 26, 2024
+Investment in bonds (various small denomination
+investments)
+Quoted - At fair value through other comprehensive
+income
+In debentures/bonds
+Others
+Quoted - At fair value through other comprehensive
+income
+*10,000)]
+National savings certificates [*Nil (March 31, 2020:
+Unquoted - At amortised cost
+In government securities
+Others
+Quoted - At fair value through Profit or Loss
+In equity instruments
+Others
+0.5
+Shares of USD 0.001 each
+50,000
+50,000
+34.6
+37,306
+Avrobio Inc.
+Shares of USD 0.001 each
+17.4
+10,905
+37,306
+23.1
+Akero Therapeutics Inc.
+Shares of USD 0.00004 each
+18.9
+8,352
+19.3
+8,352
+10,905
+43.8
+Shares of USD 0.0001 each
+In limited liabiity partnership
+Biotech Consortium India Limited
+(934.0)
+(934.0)
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+934.0
+9,340,000
+934.0
+9,340,000
+Shimal Research Laboratories Limited
+Unquoted - At fair value through Profit or Loss
+In equity instruments
+400.0
+ABCD Technologies LLP
+Unquoted - At fair value through other comprehensive
+income
+0.5
+8.01% Government of Rajasthan UDAY 2020
+Bond of *1 each fully paid matured on June 23, 2020
+Quoted - At fair value through other comprehensive
+income
+Investment in others @
+As at
+As at
+March 31, 2021
+March 31, 2020
+63.4
+120.5
+143.6
+150.9
+696.2
+342.4
+146.6
+Shares of 10 each fully paid
+5,657.7
+5,848.6
+364.9
+2,186.9
+3,209.5
+(500.0)
+(500.0)
+8,759.3
+9,293.4
+* The Group is carrying an allowance of *500.0 Million (March 31, 2020 : *500.0 Million) against other receivables (Others) based on assessment
+regarding recoverability of the same.
+NOTE: 18 OTHER CURRENT ASSETS
+in Million
+Export incentives receivable
+Less: Allowance for doubtful others
+Refund due from government authorities
+Unbilled Revenue (Refer note 53)
+* in Million
+As at
+March 31, 2020
+377.2
+0.7
+193.7
+0.8
+1,105.8
+15.3
+10.2
+(15.3)
+(10.2)
+194.4
+1,106.6
+560.1
+1,483.8
+213
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+NOTE : 17 OTHER FINANCIAL ASSETS (CURRENT)
+Interest accrued on investments/balances with banks
+Security deposits (unsecured, considered good)
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Others
+365.7
+Prepaid expenses
+Considered good
+5,990,000,000
+100,000
+5,990.0
+10.0
+6,000.0
+5,990,000,000
+100,000
+5,990.0
+10.0
+6,000.0
+Issued, subscribed and fully paid up
+Equity shares of ₹1 each (Refer note 41)
+2,399,334,970
+2,399.3 2,399,334,970
+2,399.3
+2,399,334,970
+2,399.3 2,399,334,970
+2,399.3
+214
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+NOTE : 20 OTHER EQUITY
+A) Reserves and surplus
+Capital reserve
+Securities premium
+Amalgamation reserve
+Capital redemption reserve
+Cumulative preference shares of *100 each
+Advances for supply of goods and services
+Equity shares of 1 each
+* in Million
+Considered doubtful
+Less: Allowance for doubtful
+Balances with government authorities*
+Others
+* Includes balances of goods and services tax.
+NOTE: 19 EQUITY SHARE CAPITAL
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2020
+1,645.1
+2,787.0
+3,440.5
+1,857.5
+3,647.8
+3,942.3
+398.9
+(398.9)
+343.2
+(343.2)
+10,173.4
+8,738.4
+508.2
+18,761.5
+974.3
+18,953.0
+As at March 31, 2021
+Number of shares
+* in Million
+As at March 31, 2020
+Number of shares
+Authorised
+As at
+March 31, 2021
+121.5
+* Others: Loans given to various parties at prevailing market interest rate.
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+@ Includes investment in various small denomination U.S Treasuries, certificate of deposits and commercial papers.
+Aggregate book value (carrying value) of quoted
+30,990.6
+44,936.8
+investments
+Aggregate amount of quoted investments at market
+value
+30,990.6
+44,936.8
+Aggregate amount of unquoted investments before
+impairment
+310.0
+4,036.8
+Aggregate amount of impairment in value of investments
+212
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+NOTE: 13 TRADE RECEIVABLES
+Unsecured, considered good
+Credit impaired
+Less: Allowance for credit impaired (expected credit loss allowance)
+NOTE : 14 CASH AND CASH EQUIVALENTS
+Balance with banks
+In current accounts
+48,973.6
+In deposit accounts with original maturity less than 3 months
+Cheques, drafts on hand
+3,923.7
+310.0
+31,300.6
+In bonds/debentures
+Quoted - At fair value through other comprehensive
+income
+Investment in bonds (various small denomination
+investments)
+National Highways Authority of India - 8.2% Bonds of
+*1,000 each fully paid of maturing on January 25, 2022
+Power Finance Corporation Ltd (Series I) - 8.2% Bonds of
+*1,000 each fully paid maturing on February 01, 2022
+Indian Railway Finance Corporation Ltd - 8/8.15% Bonds
+of *1,000 each fully paid maturing on February 23, 2022
+In convertible promissory note
+Unquoted - At fair value through Profit or Loss
+In mutual funds *
+Unquoted - At fair value through Profit or Loss
+As at March 31, 2021
+Quantity
+* in Million
+As at March 31, 2020
+Quantity
+* in Million
+Annual Report 2020-21
+27,400,000
+27.0
+20,421.6
+14,760.5
+24,488.2
+61,809
+63.9
+142,393
+147.2
+163,131
+168.7
+113.1
+Cash on hand
+15,850.3
+Consolidated Accounts
+14.6
+56,766.1
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+1,600.9
+3,658.3
+4,250.0
+86.7
+76.3
+37.2
+124.8
+1,724.8
+# Balances held as margin money amounting to 1.0 Million (March 31, 2020: *17.5 Million) which have an original maturity of more
+than 12 months.
+8,109.4
+NOTE: 16 LOANS (CURRENT)
+Loans to related party
+Secured, considered good (Refer note 68)
+Loans to employees/others
+Secured, considered good
+Unsecured, considered good
+Loans to employees/others - credit impaired
+Less: Allowance for credit impaired
+Financial Statements
+Balances held as margin money or security against guarantees and other commitments #
+Unpaid dividend accounts
+Krystal Biotech, Inc.
+Earmarked balances with banks
+As at
+Escrow account - Buy back (Refer note 64)
+March 31, 2021
+90,614.0
+As at
+March 31, 2020
+94,212.4
+2,410.4
+2,513.7
+93,024.4
+96,726.1
+(2,410.4)
+(2,513.7)
+* in Million
+94,212.4
+90,614.0
+Deposit accounts
+62,730.3
+14.1
+152.7
+NOTE: 15 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 14 ABOVE
+28,097.7
+34,327.7
+290.8
+As at
+March 31, 2020
+As at
+March 31, 2021
+* in Million
+18,936.0
+37,662.8
+465.4
+550.9
+48.7
+62.7
+29.9
+15.4
+1,184.6
+2,848.9
+357.1
+315.1
+2,269.9
+241.3
+255.3
+405.3
+569.9
+24.3
+823.7
+24.8
+13.1
+150.5
+Notes to the Consolidated Financial Statements
+19,206.2
+France
+20,972.1
+45.5
+56.1
+32.4
+42.3
+5,941.2
+13.8
+473.6
+19,251.7
+21,028.2
+405.9
+7,611.5
+8,554.4
+47.9
+32.6
+33.8
+6,535.3
+Repairs and maintenance
+Year ended
+March 31, 2021
+7,841.0
+1.5
+155.5
+Impairment of property, plant and equipment, goodwill and other intangible assets
+Miscellaneous expenses
+273.8
+273.2
+86.9
+94,781.1
+22.4
+635.4
+515.6
+Donations
+19,083.8
+March 31, 2020
+Year ended
+* in Million
+Loss on sale/write off of property, plant and equipment and other intangible assets, net
+Payment to auditors (net of input credit, wherever applicable)
+102,705.5
+NOTE: 37 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE CONSOLIDATED STATEMENT
+OF PROFIT AND LOSS
+Salaries, wages and bonus
+* in Million
+220
+Receipts from research activities
+Miscellaneous income
+Less:
+Miscellaneous expenses
+Professional, legal and consultancy
+Communication
+Travelling and conveyance
+Printing and stationery
+Insurance
+Rent
+Rates and taxes
+Power and fuel
+Consumption of materials, stores and spare parts
+Staff welfare expenses
+Contribution to provident and other funds
+Year ended
+March 31, 2020
+7,701.7
+100.00%
+19,206.2
+484.1
+19,690.3
+5,579.8
+Freight outward and handling charges
+6,223.7
+5,722.4
+Communication
+983.8
+959.3
+Provision/write off/(reversal) for doubtful trade receivables/advances
+43.1
+1,068.1
+Annual Report 2020-21
+219
+Sun Pharmaceutical Industries Limited
+CARE
+2,401.9
+Notes to the Consolidated Financial Statements
+Year ended
+March 31, 2021
+Professional, legal and consultancy
+99.99%
+98
+Sun Pharma (Shanghai) Limited
+China
+100.00%
+99
+Aquinox Pharmaceuticals (Canada) Inc
+Canada
+(Refer note r)
+Name of Joint Venture Entity
+100 Artes Biotechnology GmbH
+Germany
+for the year ended March 31, 2021
+45.00%
+Travelling and conveyance
+532.6
+95
+Sun Pharma Distributors Limited
+India
+100.00%
+100.00%
+96
+Realstone Infra Limited
+India
+100.00%
+100.00%
+97
+Sun Pharmaceuticals (EZ) Limited
+Bangladesh
+Germany
+480.0
+Basics GmbH
+(Refer note p)
+419.8
+362.4
+4,587.6
+4,704.6
+2,360.2
+1,965.2
+22,782.9
+28,696.5
+2,033.0
+2,125.9
+5,284.4
+4,491.8
+Printing and stationery
+68
+45.00%
+Name of Associates
+101
+40.55%
+40.55%
+United States of America
+19.88%
+19.99%
+United States of America
+19.99%
+19.99%
+United States of America
+19.99%
+19.99%
+Annual Report 2020-21
+223
+Sun Pharmaceutical Industries Limited
+CARE
+India
+Notes to the Consolidated Financial Statements
+Country of Incorporation
+Proportion of ownership interest
+for the year ended
+March 31, 2020
+March 31, 2021
+112 Dr. Py Institute LLC
+113 Medinstill Development LLC
+United States of America
+United States of America
+19.88%
+19.99%
+19.88%
+19.99%
+114 ALPS LLC
+United States of America
+19.88%
+for the year ended March 31, 2021
+39.41%
+39.41%
+India
+Medinstill LLC
+United States of America
+19.99%
+19.99%
+102
+Generic Solar Power LLP
+India
+28.76%
+28.76%
+103 Trumpcard Advisors and Finvest LLP
+India
+40.61%
+40.61%
+104 Tarsier Pharma Ltd (Formerly known as Tarsius Pharma Ltd.)
+Israel
+18.71%
+17.78%
+111 HRE III LLC
+110 HRE II LLC
+109 HRE LLC
+108 Vento Power Generation LLP
+107 Vintage Power Generation LLP
+36.90%
+100.00%
+36.90%
+12.50%
+Australia
+106 Composite Power Generation LLP
+20,235.4
+Name of Subsidiary of Associates
+105 WRS Bioproducts Pty Ltd.
+India
+100.00%
+Japan
+Kayaku Co., Ltd.
+96.81%
+74
+AO Ranbaxy
+Russia
+100.00%
+100.00%
+75
+Ranbaxy South Africa (Pty) Ltd
+South Africa
+100.00%
+100.00%
+76 Ranbaxy Pharmaceuticals (Pty) Ltd
+South Africa
+100.00%
+96.81%
+100.00%
+Sonke Pharmaceuticals Proprietary Limited
+South Africa
+70.00%
+70.00%
+78
+Sun Pharma Laboratorios, S.L.U. (Formerly known as
+Spain
+100.00%
+100.00%
+Laboratorios Ranbaxy, S.L.U.)
+79
+Ranbaxy (U.K.) Limited
+United Kingdom
+100.00%
+77
+Romania
+Terapia SA
+73
+69
+Ranbaxy Ireland Limited
+Ireland
+100.00%
+100.00%
+(Refer note s)
+70
+Sun Pharma Italia srl (Formerly known as Ranbaxy Italia
+Italy
+100.00%
+100.00%
+S.P.A.)
+71
+Sun Pharmaceutical Industries S.A.C.
+Peru
+100.00%
+100.00%
+March 31, 2020
+Proportion of ownership interest
+for the year ended
+March 31, 2021
+Country of Incorporation
+Consolidated Accounts
+Financial Statements
+100.00%
+for the year ended March 31, 2021
+222
+100.00%
+100.00%
+Poland
+Ranbaxy (Poland) SP. Z O.O.
+72
+Notes to the Consolidated Financial Statements
+19.99%
+80
+United Kingdom
+(Refer note o)
+88
+89
+Sun Pharmaceutical Medicare Limited
+JSC Biosintez
+India
+Russia
+100.00%
+100.00%
+100.00%
+100.00%
+90
+Sun Pharmaceuticals Holdings USA, Inc.
+91
+Zenotech Laboratories Nigeria Limited
+United States of America
+Nigeria
+100.00%
+100.00%
+(Refer note f & h)
+92
+Zenotech Inc
+United States of America
+93
+Zenotech Farmaceutica Do Brasil Ltda
+Brazil
+57.56%
+(Refer note f)
+38.21%
+(Refer note f)
+57.56%
+(Refer note f)
+38.21%
+(Refer note f)
+94
+100.00%
+United States of America
+Insite Vision Incorporated
+87
+100.00%
+100.00%
+81
+Ranbaxy Inc.
+United States of America
+100.00%
+100.00%
+82
+Ranbaxy (Thailand) Co., Ltd.
+Thailand
+100.00%
+100.00%
+83
+Ohm Laboratories, Inc.
+United States of America
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+Morocco
+Ukraine
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+Ranbaxy Holdings (U.K.) Limited
+86
+85
+67.50%
+67.50%
+United States of America
+Ranbaxy Signature LLC
+84
+Sun Pharmaceuticals Morocco LLC
+100.00%
+115 Intact Pharmaceuticals LLC
+19.88%
+Opioids:
+SPIINC is a defendant in the National Prescription
+Opiate Litigation that has been consolidated for
+pre-trial proceedings in the U.S. District Court for the
+Northern District of Ohio, as well as in state cases
+pending in Utah state court; separately, the parent
+company and Sun Pharma Canada Inc are defendants
+in putative class actions pending in Canada. The U.S.
+and Canadian matters involve similar allegations, and
+were brought against various manufacturers and
+distributors of opioid products seeking damages for
+alleged harms related to opioid use. Currently, all
+matters against SPIINC in the National Prescription
+Opiate Litigation are stayed; SPIINC obtained an order
+in the Utah matters dismissing all claims except public
+nuisance and negligence claims; and the Canadian
+matters are in the early stages of pleading.
+Taro Industries has been named as a defendant in
+a putative opioids class action pending in Israel, in
+which the claimant alleges that Taro Industries did
+not provide sufficient disclosure regarding the risks
+226
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+associated with opioid use in violation of the Israeli
+Consumer Protection Act. Taro Industries filed its
+defense to the application for class action approval on
+May 02, 2021.
+Antitrust - Lipitor:
+The parent company and certain of its subsidiaries
+are defendants in a number of putative class action
+lawsuits and individual actions brought by purchasers
+and payors in the U.S. alleging that the parent company
+and certain of its subsidiaries violated antitrust laws in
+connection with a 2008 patent settlement agreement
+with Pfizer concerning Atorvastatin. The cases have
+been transferred to the U.S. District Court for the
+District of New Jersey for coordinated proceedings.
+Discovery commenced in January 2020, but was
+stayed and remains stayed at present.
+Antitrust - In re Ranbaxy Generic Drug Application
+Antitrust Litigation:
+The parent company and certain of its subsidiaries are
+defendants in a number of class action lawsuits and
+individual actions brought by purchasers and payors in
+the U.S. alleging that the parent company and certain
+of its subsidiaries violated antitrust laws and the RICO
+Act with respect to its ANDAs for Valganciclovir,
+Valsartan and Esomeprazole. The cases have been
+transferred to the U.S. District Court for the District
+of Massachusetts for coordinated proceedings. This
+lawsuit is currently scheduled for trial in January 2022.
+Product Liability - Ranitidine/Zantac MDL:
+In June 2020, the parent company and certain of its
+subsidiaries were named as defendants in a complaint
+filed in the Zantac/Ranitidine Multi-District Litigation
+("MDL") consolidated in the U.S. District Court for
+the Southern District of Florida. The lawsuits name
+Taro Industries Shareholders Litigation in Israel:
+On June 22, 2020, a motion seeking documents before
+filing a shareholder derivative action was filed by a
+single shareholder against Taro Industries and Taro
+U.S.A. in the Haifa District Court related to alleged
+U.S. antitrust violations. On September 22, 2020, a
+subsequent motion seeking documents was filed by a
+single shareholder against Taro Industries related to
+alleged misreporting to U.S. Medicaid and three prior
+state settlements. Both motions were consolidated
+on February 16, 2021, and remain pending before the
+Haifa District Court. Taro Industries has filed a motion
+to stay proceedings pending resolution of the related
+U.S. litigation.
+over 100 defendants, including brand manufacturers,
+generic manufacturers, repackagers, distributors,
+and retailers, involving allegations of injury caused
+by nitrosamine impurities. Discovery in the MDL is
+ongoing. On September 04, 2020 and October 03,
+2020, the Court dismissed Taro Industries and Taro
+U.S.A, respectively, from the master complaints
+without prejudice, and both entities have now been
+dismissed from all individual complaints.
+On March 25, 2021, the Court of Justice of the
+European Union ("CJEU") issued a final judgment and
+upheld the European Commission's ("EC") decision
+dated June 19, 2013 that a settlement agreement
+between Ranbaxy (U.K.) Limited and Ranbaxy
+Laboratories Limited (together "Ranbaxy") with
+Lundbeck was anti-competitive. Ranbaxy had made a
+provisional payment of the fine of Euro 10.3 Million on
+September 20, 2013. Since there are no further rights
+of appeal, this amount of $895.6 Million (inclusive
+of legal charges) was provided in the consolidated
+financial statements for the year ended March 31,
+2021.
+The Company may now be subject to "follow-on"
+claims in national courts of some countries. However,
+the Company has not yet been served with a claim
+detailing the alleged causation and quantum of any
+purported damages. Accordingly, the Company is
+currently unable to estimate the potential liability
+which may arise on account of follow-on claims.
+The Company also believes, based on its internal
+assessment and that of its independent legal counsel,
+that it has favourable legal arguments in terms of
+defending any potential damages claim.
+Note:
+Future cash outflows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums
+/ authorities.
+* Income tax matters where department has preferred an appeal against favourable order received by the Company amounted to 40,524.8
+Million (March 31, 2020: 38,959.0 Million). These matters are sub-judice in various forums and pertains to various financial years.
+B) Guarantees given by the bankers on behalf of the Group
+Annual Report 2020-21
+As at
+March 31, 2021
+1,817.6
+* in Million
+As at
+March 31, 2020
+2,211.5
+227
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+Fine imposed for anti-competitive settlement
+agreement by European Commission:
+for the year ended March 31, 2021
+Taro Pharmaceutical Industries Ltd. and two of its
+former officers are named as defendants in a putative
+shareholder class action litigation pending in the
+U.S. District Court for the Southern District of New
+York, which asserts claims under Section 10(b) of the
+Securities Exchange Act of 1934 (the "Exchange Act")
+against all defendants and claims under Section 20(a)
+of the Exchange Act against the individual defendants.
+The lawsuit generally alleges that the defendants made
+material misstatements and omissions in connection
+with an alleged conspiracy to fix drug prices. On
+September 24, 2018, the Court granted in part and
+denied in part the Taro Industries' motion to dismiss.
+The case is proceeding with limited discovery.
+Further, during the year ended March 31, 2021,
+Taro Industries made a provision of USD 140 Million
+(equivalent to 10,384.4 Million) for ongoing multi-
+jurisdiction civil antitrust matters; however, the
+ultimate outcome of these matters cannot be predicted
+with certainty. These provisions have been disclosed
+as exceptional items in the consolidated financial
+statements.
+728.9
+38,643.2
+148.4
+41,026.6
+115.3
+1,511.6
+1,005.7
+130.5
+130.5
+3,488.2
+3,488.2
+856.1
+Octroi demand on account of rate difference
+Other matters - state electricity board, Punjab Land Preservation Act related matters etc.
+90.2
+Speakes v. Taro Pharmaceutical Industries Ltd.:
+171.0
+89.8
+III) Legal proceedings:
+The parent company and/or its subsidiaries are
+involved in various legal proceedings including product
+liability, contracts, employment claims, antitrust
+and other regulatory matters relating to conduct of
+its business. Some of the key matters are discussed
+below. Most of the legal proceedings involve complex
+issues, which are specific to the case and do not have
+precedents, and, hence, for a majority of these claims,
+it is not possible to make a reasonable estimate of
+the expected financial effect, if any, that will result
+from ultimate resolution of the proceedings. This
+is due to a number of factors, including: the stage
+of the proceedings and the overall length and the
+discovery process; the entitlement of the parties to an
+action to appeal a decision; the extent of the claims,
+including the size of any potential class, particularly
+when damages are not specified or are indeterminate;
+the possible need for further legal proceedings to
+establish the appropriate amount of damages, if
+any; the settlement posture of the other parties to
+the litigation, and any other factors that may have a
+material effect on the litigation. The Company makes
+its assessment of likely outcome based on the views of
+internal legal counsel and in consultation with external
+legal counsel representing the Company. The Company
+also believes that disclosure of the amount sought by
+plaintiffs would not be meaningful because historical
+evidence indicates that the amounts settled (if any) are
+significantly different than those claimed by plaintiffs.
+Some of the legal claims against the Company, if
+decided against the Company or settled by the
+Company, may result in significant impact on its results
+of operations.
+Antitrust - Gx Drug Price Fixing Litigation:
+On April 01, 2016, Sun Pharmaceutical Industries,
+Inc. ("SPIINC"), a subsidiary of the parent company,
+received a grand jury subpoena from the U.S.
+Department of Justice ("DOJ"), Antitrust Division,
+seeking documents relating to certain generic
+pharmaceutical products and pricing, potential
+communications with competitors, and certain other
+related matters. On or before November 2017, SPIINC
+provided documents and information related to three
+pharmaceutical products. The Antitrust Division has
+not asked for any additional information from SPIINC,
+or communicated with SPIINC, about the subpoena
+since that time.
+On April 30, 2018, SPIINC received a Civil
+Investigative Demand ("CID") from the DOJ, Civil
+Division, in connection with a False Claims Act
+investigation, seeking information relating to certain
+Annual Report 2020-21
+225
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+generic pharmaceutical products and pricing, potential
+communications with competitors, and certain other
+related matters. In response to the CID, SPIINC
+provided certain materials to the Civil Division in 2018.
+The Civil Division has not asked for any additional
+information from SPIINC, or communicated with
+SPIINC, about the CID since that time.
+On July 23, 2020, Taro Pharmaceuticals U.S.A.,
+Inc. ("Taro U.S.A.") came to a global resolution with
+the DOJ, Antitrust Division and Civil Division in
+connection with DOJ's multi-year investigation into
+the U.S. generic pharmaceutical industry. Under a
+Deferred Prosecution Agreement ("Agreement")
+reached with DOJ Antitrust Division, the DOJ filed an
+Information relating to conduct that occurred between
+2013 and 2015. If Taro U.S.A adheres to the terms
+of the Agreement, including paying a penalty of USD
+205.7 Million (equivalent to 15,601.8 Million), the
+DOJ will dismiss the Information at the end of a three-
+year period. Taro U.S.A. has also reached a framework
+understanding with DOJ Civil Division, subject to final
+agreement and agency authorisation, in which Taro
+U.S.A. has agreed to pay USD 213.3 Million (equivalent
+to 16,179.6 Million) to resolve all claims related to
+federal healthcare programs. Accordingly, an amount
+of USD 418.9 Million (equivalent to ₹31,781.4 Million)
+was provided in the year ended March 31, 2021.
+SPIINC, Taro Pharmaceutical Industries Ltd. ("Taro
+Industries") and its subsidiaries, along with more than
+70 other pharmaceutical companies and individuals,
+are named as defendants in lawsuits brought by
+several putative classes, state Attorneys Generals,
+municipalities, and individual company purchasers and
+payors, alleging violations of the antitrust and related
+laws in the U.S. and Canada. Each of the cases that
+were filed in U.S. federal court have been transferred
+to the U.S. District Court for the Eastern District of
+Pennsylvania for coordinated pre-trial proceedings,
+and are now in discovery. In May 2021, that Court
+designated certain complaints naming SPIINC and Taro
+U.S.A. as "bellwether" cases to begin the sequencing of
+proceedings.
+Note: Includes, interest till the date of demand, wherever applicable.
+NOTE: 40 COMMITMENTS
+24,334.3
+in Million
+334,956,764 (upto March 31, 2020: 334,956,764) equity shares of 1 each have been allotted, pursuant to scheme of
+amalgamation, without payment being received in cash during the period of five years immediately preceding the date
+at which the balance sheet is prepared.
+7,500,000 (upto March 31, 2020: 7,500,000), equity shares of ₹1 each have been bought back during the period
+of five years immediately preceding the date at which the Balance Sheet is prepared. The shares bought back were
+cancelled.
+Equity shares held by each shareholder holding more than 5 percent equity shares in the parent company are as
+follows:
+As at March 31, 2021
+Number of shares
+% of holding
+As at March 31, 2020
+Number of shares
+% of holding
+40.3
+967,051,732
+40.3
+9.6
+230,285,690
+9.6
+6.8
+2,399.3
+152,884,946
+Name of Shareholders
+Shanghvi Finance Private Limited
+Dilip Shantilal Shanghvi
+Life Insurance Corporation of India and its various funds
+967,051,732
+230,285,690
+162,207,571
+NOTE: 42 RESEARCH AND DEVELOPMENT EXPENDITURE
+Revenue, net (excluding depreciation) (Refer note 37)
+Capital
+228
+Year ended
+March 31, 2021
+20,972.1
+471.2
+21,443.3
+* in Million
+Year ended
+March 31, 2020
+6.4
+2,399,334,970
+2,399.3
+2,399,334,970
+As at
+As at
+March 31, 2021
+March 31, 2020
+1)
+Estimated amount of contracts remaining to be executed on capital account (net of
+advances) *
+23,436.0
+II)
+Investment related commitments
+III) Letters of credit for imports
+119.4
+633.9
+323.0
+608.6
+*The Group is committed to pay milestone payments and royalty on certain contracts, however, obligation to pay is contingent upon fulfilment of
+contractual obligation by parties to the contract.
+NOTE: 41 DISCLOSURES RELATING TO SHARE CAPITAL
+¡
+* in Million
+Year ended March 31, 2020
+Number of shares
+2,399.3
+2,399.3
+* in Million
+Year ended March 31, 2021
+Number of shares
+2,399,334,970
+2,399,334,970
+Closing balance
+558.3
+Opening balance
+iv
+iii
+Reconciliation of the number of equity shares and amount outstanding at the beginning and at the end of reporting
+period
+ii
+The equity shares of the parent company, having par value of 1 per share, rank pari passu in all respects including
+voting rights and entitlement to dividend.
+Rights, preferences and restrictions attached to equity shares
+V
+* in Million
+As at
+March 31, 2020
+As at
+March 31, 2021
+Fine imposed for anti-competitive settlement agreement by European Commission (Refer
+note 61)
+р
+With effect from April 01, 2020 Office Pharmaceutique
+Industriel Et Hospitalier has been merged with
+Sun Pharma France (Formerly Known as Ranbaxy
+Pharmacie Generiques).
+q
+With effect from March 17, 2021 Sun Pharmaceuticals
+France has been dissolved.
+g
+With effect from January 25, 2019 Sun Global Canada
+Pty. Ltd. has been dissolved.
+6,218.9
+6,270.9
+6,180.9
+5,416.1
+6,227.3
+6,537.3
+for the year ended March 31, 2021
+Books of accounts and other related records/
+documents of the overseas subsidiaries of the
+Zenotech Laboratories Limited were missing and
+due to non-availability of those records/information,
+Zenotech Laboratories Limited is unable to prepare
+consolidated accounts.
+Repairs and maintenance
+Selling, promotion and distribution
+Insurance
+Rates and taxes
+Rent
+Power and fuel
+Conversion and other manufacturing charges
+Consumption of materials, stores and spare parts
+March 31, 2020
+Year ended
+Year ended
+March 31, 2021
+* in Million
+121.8
+3,027.3
+2,505.3
+400.2
+1,414.3
+Commission on sales
+f
+With effect from April 01, 2020 Insite Vision
+Incorporated, Mutual Pharmaceutical Company Inc
+and Pharmalucence, Inc. has been merged with Sun
+Pharmaceutical Industries, Inc.
+With effect from January 05, 2021 Sun
+Pharmaceuticals Korea Ltd has been dissolved.
+19.99%
+116 Intact Media LLC (Formerly known as Intact Skin Care LLC)
+117 Intact Solutions LLC
+United States of America
+19.88%
+19.99%
+United States of America
+19.88%
+19.99%
+b Following are the details of the Group's holding in Taro:
+Voting power
+Beneficial ownership
+March 31, 2021
+March 31, 2020
+85.18%
+77.78%
+84.73%
+77.10%
+C
+In respect of entities at Sr. Nos.3 to 6, 39, 74, 86,
+87, 89, 100, 101, 104, 105 and from 109 to 117 the
+reporting date is different from the reporting date of
+the parent company.
+With effect from March 27, 2020 Morley & Company,
+Inc has been merged with The Taro Development
+Corporation.
+With effect from March 16, 2020 Dungan Mutual
+Associates, LLC and URL PharmPro, LLC has been
+merged with Mutual Pharmaceutical Company Inc.
+O
+n
+m
+Foundation for Disease Elimination and Control of
+India (FDEC), a wholly owned subsidiary incorporated
+in India on September 21, 2016 by the parent company
+as part of its Corporate Social Responsibility (CSR)
+initiative. FDEC has entered into an MOU with Indian
+Council of Medical Research (ICMR) and Madhya
+Pradesh State Government to undertake the Mandla
+Malaria Elimination Demonstration Project with a goal
+to eliminate Malaria in the state. FDEC is a Section 8
+company not considered for consolidation since it can
+apply its income for charitable purposes only and can
+raise funds/contribution independently.
+3.4
+e
+In respect of entitiy at Sr. No. 97, 98, 99 and 105 has
+been incorporated/ acquired during the year ended
+March 31, 2021.
+d
+With effect from February 27, 2020 Sun Global
+Development FZE has been dissolved.
+k
+With effect from January 28, 2020 Sun Pharma
+Healthcare FZE has been dissolved.
+j
+|
+United States of America
+1,193.0
+217.9
+Year ended
+March 31, 2021
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+r
+With effect from July 31, 2020 Aquinox
+h
+With effect from July 15, 2019 Zenotech Laboratories
+Nigeria Limited has been dissolved.
+Pharmaceuticals (Canada) Inc has been merged with
+Taro Pharmaceuticals Inc.
+S
+Ranbaxy Ireland Limited is under liquidation.
+i
+With effect from January 01, 2020 Pola Pharma Inc.
+has been merged with Sun Pharma Japan Ltd.
+t
+Significant Accounting Policies and other Notes to
+224
+Financial Statements
+Consolidated Accounts
+these Consolidated Financial Statements are intended
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+to serve as a means of informative disclosure and a
+guide for better understanding of the consolidated
+position of the Group. Recognising this purpose, the
+Group has disclosed only such policies and notes
+from the individual financial statements which
+fairly represent the needed disclosures. Lack of
+homogeneity and other similar considerations made
+it desirable to exclude some of them, which in the
+opinion of the management, could be better viewed
+when referred from the individual financial statements.
+NOTE: 39 CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
+A) Contingent liabilities
+1)
+Claims against the Group not acknowledged as debts
+II) Liabilities disputed - appeals filed with respect to:
+Income tax on account of disallowances / additions (Company appeals) *
+Sales tax on account of rebate / classification
+Excise duty / service tax on account of valuation / cenvat credit
+ESIC contribution on account of applicability
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended
+benefit, enjoyed by the Group
+Notes to the Consolidated Financial Statements
+NOTE : 33 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+Year ended
+March 31, 2021
+48,864.4
+63,623.5
+68,622.3
+2,853.5
+3,299.3
+4,377.8
+4,792.9
+56,392.2
+60,530.1
+Year ended
+March 31, 2020
+* in Million
+Year ended
+March 31, 2021
+1,870.0
+(48,864.4)
+3,008.5
+(6,382.2)
+(55,456.0)
+209.4
+NOTE: 36 OTHER EXPENSES
+Exchange differences regarded as an adjustment to borrowing costs
+* in Million
+Year ended
+March 31, 2020
+50,002.9
+Inventories at the beginning of the year
+Foreign currency translation difference
+Inventories at the end of the year
+NOTE: 34 EMPLOYEE BENEFITS EXPENSE
+* in Million
+Year ended
+March 31, 2020
+Salaries, wages and bonus
+Staff welfare expenses
+* Includes gratuity expense of *480.0 Million (March 31, 2020: *365.6 Million)
+NOTE: 35 FINANCE COSTS
+Interest expense:
+-for financial liabilities carried at amortised cost
+-others (includes interest on income tax and lease liability)
+Contribution to provident and other funds*
+Financial Statements
+Consolidated Accounts
+100.00%
+Taro International Ltd.
+Sun Pharmaceuticals France
+Israel
+Netherlands
+Germany
+France
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+30
+100.00%
+31
+Sun Pharma Global FZE
+Sun Pharmaceuticals SA (Pty) Ltd
+Sun Global Canada Pty. Ltd.
+United Arab Emirates
+100.00%
+100.00%
+34
+Sun Pharma Philippines, Inc.
+35
+(Refer note q)
+Sun Pharmaceuticals Germany GmbH
+Sun Pharmaceutical Industries (Europe) B.V.
+28
+86.16%
+86.16%
+Chattem Chemicals Inc.
+United States of America
+100.00%
+100.00%
+24
+The Taro Development Corporation
+United States of America
+100.00%
+100.00%
+25
+Alkaloida Chemical Company Zrt.
+Hungary
+99.99%
+99.99%
+26
+Sun Pharmaceutical Industries (Australia) Pty Limited
+Australia
+100.00%
+100.00%
+27
+Aditya Acquisition Company Ltd.
+Sun Pharmaceuticals Korea Ltd.
+South Africa
+Canada
+Philippines
+South Korea
+100.00%
+39
+Pola Pharma Inc.
+Japan
+(Refer note i)
+40
+40
+Sun Pharma Healthcare FZE
+United Arab Emirates
+(Refer note j)
+41
+Morley & Company, Inc.
+United States of America
+(Refer note m)
+42
+Sun Laboratories FZE
+United Arab Emirates
+100.00%
+100.00%
+43
+Taro Pharmaceutical Industries Ltd. (Taro)
+44
+Taro Pharmaceuticals Inc.
+100.00%
+95.67%
+100.00%
+100.00%
+Sun Pharma Japan Ltd.
+(Refer note g)
+100.00%
+(Refer note n)
+100.00%
+100.00%
+100.00%
+(Refer note g)
+Annual Report 2020-21
+221
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Country of Incorporation
+Proportion of ownership interest
+for the year ended
+March 31, 2021
+March 31, 2020
+36
+Sun Global Development FZE
+United Arab Emirates
+(Refer note k)
+37
+Caraco Pharmaceuticals Private Limited
+India
+38
+Japan
+95.67%
+Malaysia
+Nigeria
+Ranbaxy Nigeria Limited
+99.33%
+OOO "Sun Pharmaceutical Industries" Limited
+Russia
+100.00%
+100.00%
+Sun Pharma De Venezuela, C.A.
+Venezuela
+100.00%
+100.00%
+Sun Pharma Laboratories Limited
+India
+100.00%
+100.00%
+Faststone Mercantile Company Private Limited
+India
+100.00%
+100.00%
+10 Neetnav Real Estate Private Limited
+India
+100.00%
+100.00%
+11
+Realstone Multitrade Private Limited
+99.33%
+India
+Peru
+100.00%
+NOTE: 38 a) List of entities included in the Consolidated Financial Statements is as under:
+Proportion of ownership interest
+for the year ended
+Country of Incorporation
+March 31, 2021
+March 31, 2020
+Parent company
+Sun Pharmaceutical Industries Limited
+Direct Subsidiaries
+123456789
+Green Eco Development Centre Limited
+Sun Pharmaceutical (Bangladesh) Limited
+India
+100.00%
+100.00%
+Bangladesh
+72.50%
+72.50%
+Sun Pharma De Mexico S.A. DE C.V.
+Mexico
+75.00%
+75.00%
+SPIL De Mexico S.A. DE C.V.
+Mexico
+100.00%
+Sun Pharmaceutical Peru S.A.C.
+Israel (Refer note b)
+Canada
+100.00%
+12
+17
+Zenotech Laboratories Limited
+India
+57.56%
+(Refer note f)
+57.56%
+(Refer note f)
+Indirect Subsidiaries
+18
+Sun Farmaceutica do Brasil Ltda.
+19
+Sun Pharma France (Formerly Known as Ranbaxy Pharmacie
+Generiques)
+Brazil
+France
+100.00%
+100.00%
+100.00%
+100.00%
+22222222223 32333
+20
+Sun Pharmaceutical Industries, Inc.
+United States of America
+100.00%
+100.00%
+21
+Ranbaxy (Malaysia) SDN. BHD.
+(Refer note e)
+100.00%
+(Refer note e)
+100.00%
+Skisen Labs Private Limited
+India
+100.00%
+100.00%
+13
+Sun Pharma Holdings
+Mauritius
+100.00%
+100.00%
+14
+Softdeal Pharmaceuticals Private Limited (Formerly known
+India
+100.00%
+100.00%
+as Softdeal Trading Company Private Limited)
+15
+Sun Pharma (Netherlands) B.V.
+Netherlands
+100.00%
+100.00%
+16
+Foundation for Disease Elimination and Control of India
+India
+100.00%
+77.78%
+100.00%
+77.78%
+100.00%
+United States of America
+PI Real Estate Ventures, LLC
+61
+(Refer note o)
+100.00%
+United States of America
+Pharmalucence, Inc.
+60
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+India
+Switzerland
+Kenya
+Sun Pharma East Africa Limited
+59
+Sun Pharma Switzerland Ltd.
+58
+Universal Enterprises Private Limited
+57
+100.00%
+100.00%
+100.00%
+United States of America
+62
+63
+77.10%
+Office Pharmaceutique Industriel Et Hospitalier
+67
+100.00%
+100.00%
+Egypt
+66
+100.00%
+100.00%
+Egypt
+Sun Pharma Egypt Limited LLC
+Sun Pharma ANZ Pty Ltd
+65
+100.00%
+Canada
+Sun Pharma Canada Inc.
+64
+100.00%
+100.00%
+100.00%
+100.00%
+Brazil
+Australia
+Ranbaxy Farmaceutica Ltda.
+100.00%
+2 Independence Way LLC
+Rexcel Egypt LLC
+(Refer note I)
+77.10%
+77.78%
+United States of America
+3 Skyline LLC
+49
+77.10%
+77.78%
+Israel
+48
+77.10%
+77.78%
+50
+Netherlands
+West Indies
+77.10%
+77.78%
+Cayman Islands, British
+Taro Pharmaceuticals North America, Inc.
+46
+77.10%
+77.78%
+United States of America
+45 Taro Pharmaceuticals U.S.A., Inc.
+56
+47 Taro Pharmaceuticals Europe B.V.
+One Commerce Drive LLC
+77.10%
+77.78%
+United States of America
+URL PharmPro, LLC
+55
+United States of America
+Dungan Mutual Associates, LLC
+54
+(Refer note o)
+100.00%
+United States of America
+Mutual Pharmaceutical Company Inc.
+53
+(Refer note I)
+100.00%
+77.10%
+100.00%
+51
+Taro Pharmaceutical Laboratories Inc.
+United States of America
+United States of America
+77.10%
+52
+Dusa Pharmaceuticals, Inc.
+77.78%
+United States of America
+RON
+Goodwill acquired in business combination is allocated, at acquisition, to the cash generating units (CGUS) that are
+expected to benefit from that business combination. The carrying amount of goodwill has been allocated as follows:
+NOTE: 47 GOODWILL (NET):
+Exposure to market risk with respect to commodity prices primarily arises from the Group's purchases and sales of
+active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients.
+These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the
+Group's raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in
+the Group's active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the
+largest portion of the Group's cost of revenues. Commodity price risk exposure is evaluated and managed through
+operating procedures and sourcing policies. As of March 31, 2021, the Group had not entered into any material
+derivative contracts to hedge exposure to fluctuations in commodity prices.
+Commodity rate risk
+For the year ended March 31, 2021 and March 31, 2020, every 50 basis point decrease in the floating interest
+rate component applicable on its closing balance of loans and borrowings would increase the Group's profit by
+approximately 262.8 Million and $339.6 Million respectively. A 50 basis point increase in floating interest rate would
+have led to an equal but opposite effect.
+Financial Statements
+Consolidated Accounts
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+236
+(Floating to fixed)
+Interest rate risk
+USD 96.2
+USD 100.0
+USD
+Sell
+INR
+Sell
+USD
+Currency swaps
+As at
+March 31, 2021
+RON 6.4
+The Group has loan facilities on floating interest rate, which exposes the Group to risk of changes in interest rates.
+The Group monitors the interest rate movement and manages the interest rate risk by evaluating interest rate swaps
+etc. based on the market / risk perception.
+Interest rate swaps
+27,943.1
+317.6
+i)
+Zenotech Laboratories Limited
+380.9
+1,677.4
+394.6
+Basics GmbH
+417.4
+404.8
+20,103.4
+19,513.0
+14,300.4
+* in Million
+As at
+March 31, 2020
+13,867.7
+135.9
+277.2
+27,097.5
+Ranbaxy Farmaceutica Ltda.
+Terapia SA
+Taro Pharmaceutical Industries Ltd.
+Sun Pharma Japan Ltd.
+Sun Farmaceutica do Brasil Ltda.
+Sun Pharmaceutical Industries, Inc.
+Goodwill in respect of:
+142.9
+RUB
+USD
+USD 2.6
+USD 6.8
+USD
+Sell
+AUD
+Forward contracts
+hedges
+Derivatives not designated as
+USD 97.3
+USD 47.3
+USD
+Forward contracts
+Buy
+Currency swaps
+USD 46.3
+USD 51.5
+NIS
+Sell
+USD
+Forward contracts
+Ranbaxy South Africa (Pty) Ltd
+USD 10.2
+USD 31.1
+JPY
+Forward contracts
+GBP
+USD 16.5
+HUF
+Sell
+USD
+Forward contracts
+USD 8.8
+CAD
+Sell
+USD
+Forward contracts
+USD 2.8
+Sell
+USD 3.0
+Sell
+USD
+Forward contracts
+USD 7.2
+USD 24.1
+USD
+Sell
+EUR
+Forward contracts
+USD 6.6
+NIS
+3.4
+* in Million
+211.9
+723.5
+562.7
+Effect of expenses that are not deductible in determining taxable profit
+Effect of Incremental deduction allowed on account of research and development costs and
+other allowances
+(90.6)
+(89.0)
+Effect of income that is exempt from tax
+(10,218.1)
+(10,625.3)
+Effect of deduction claimed under chapter VI A of Income Tax Act, 1961
+17,505.5
+9,782.1
+34.944%
+34.944%
+50,095.9
+27,993.7
+Income tax expense calculated at corporate tax rate
+Income tax rate in India (%)
+Profit before tax
+Reconciliation of tax expense
+March 31, 2020
+Year ended
+March 31, 2021
+(148.9)
+(2,054.1)
+Effect of income which is taxed at special rates
+(159.8)
+595.4
+CAD
+238
+8,228.0
+5,146.9
+Income tax expense recognised in consolidated statement of profit and loss
+(4,523.6)
+(5,445.6)
+Others
+4,302.6
+Year ended
+Effect of restructuring of an acquired entity and DOJ settlement
+3,972.9
+Tax payable under MAT on which DTA was not created
+(3,061.6)
+660.1
+12,555.2
+6,786.1
+(5,325.3)
+(4,451.0)
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+Effect of difference between Indian and foreign tax rates and non taxable subsidiaries
+Effect of deferred tax expense/ (credit) on unrealised profits
+(592.9)
+3,310.0
+Tax Reconciliation
+NOTE: 49 INCOME TAXES
+NOTE: 48 DISCLOSURES MANDATED BY THE COMPANIES ACT, 2013 SCHEDULE III PART II BY WAY OF
+ADDITIONAL INFORMATION IS GIVEN IN ANNEXURE 'A'.
+63.2
+27.5
+27.5
+1.6
+1.6
+1,184.5
+1,211.1
+Total (A-B)
+Total (B)
+Ranbaxy Malaysia SDN. BHD.
+65.2
+Sun Pharmaceutical Industries Limited
+Alkaloida Chemical Company Zrt.
+Capital reserve in respect of :
+Less:
+66,093.4
+64,179.8
+Total (A)
+1.0
+1.0
+Sun Pharmaceutical Medicare Limited
+1,677.4
+2.9
+211.0
+Ranbaxy Nigeria Limited
+JSC Biosintez
+1,303.4
+62,876.4
+The carrying amount of goodwill is stated above. The recoverable amounts have been determined based on value in
+use calculations which uses cash flow projections covering generally a period of five years (which are based on key
+assumptions such as margins, expected growth rates based on past experience and Management's expectations/
+extrapolation of normal increase/ steady terminal growth rate) and appropriate discount rates that reflects current
+market assessments of time value of money and risks specific to these investments. The cash flow projections includes
+estimates for five years developed using internal forecasts and terminal growth rate thereafter. The planning horizon
+reflects the assumptions for short to mid-term market developments. The average growth rate used in extrapolating
+cash flows beyond the planning period ranged from (8.0%) to 5.5% for the year ended March 31, 2021. Discount rate
+reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated
+on the weighted average cost of capital for respective CGU or group of CGUs. Discount rate used ranged from 2.8%
+to 8.7% for the year ended March 31, 2021. The management believes that any reasonable possible change in key
+assumptions on which recoverable amount is based is not expected to cause the aggregate carrying amount to exceed
+the aggregate recoverable amount of the cash generating unit. Based on the impairment assessment, the Management
+has determined no impairment loss in the value of goodwill.
+64,814.6
+62,876.4
+5,256.9
+(1,938.2)
+59,557.7
+64,814.6
+Year ended
+March 31, 2020
+March 31, 2021
+Year ended
+1,278.8
+Add/ (less): Foreign currency translation difference
+Closing balance
+* in Million
+Below is the reconciliation of the carrying amount of goodwill:
+ii)
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+CARE
+Sun Pharmaceutical Industries Limited
+237
+Annual Report 2020-21
+64,814.6
+Opening balance
+Sun Pharmaceutical Industries Limited
+Sell
+Forward contracts
+Level 1
+As at March 31, 2021
+Level 2
+Level 3
+Financial assets
+Investments
+Equity instruments - quoted #
+Equity instruments - quoted
+Equity instruments - unquoted
+Bonds/debentures - quoted
+Mutual funds - unquoted
+8,185.5
+1,718.3
+53,073.2
+310.0
+20,554.6
+604.9
+Others - quoted
+Venture funds - unquoted
+9,072.4
+Derivatives designated as hedges
+696.2
+Derivatives not designated as hedges
+148.6
+Total
+83,841.6
+9,917.2
+604.9
+Financial liabilities
+Derivatives designated as hedges
+293.2
+* in Million
+Derivatives not designated as hedges
+Total
+Financial assets and liabilities measured at fair value on a recurring basis at the end of each reporting period
+NOTE : 44 FAIR VALUE HIERARCHY
+377.2
+1,114.5
+94,212.4
+0.9
+3.0
+761.7
+56,766.1
+342.4
+8,109.4
+120.5
+5,848.6
+434.1
+2,709.5
+121.5
+11,825.0
+87,640.4
+170,457.9
+75,783.0
+7,365.8
+35,836.4
+93.9
+77.2
+152.2
+808.5
+1,384.7
+6,439.1
+2,970.6
+19.4
+19.4
+1,384.7
+129,526.7
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+230
+43.4
+336.6
+As at March 31, 2020
+Derivatives not designated as hedges
+Total
+1,384.7
+19.4
+1,404.1
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly.
+Level 3 inputs are unobservable inputs for the asset or liability.
+Annual Report 2020-21
+231
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of
+unquoted investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents
+estimate of fair value within that range.
+# The investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose. Upon
+the application of Ind AS 109, the Group has chosen to designate these investments in equity instruments as at fair value through other
+comprehensive income as the management believes that this provides a more meaningful presentation for medium or long-term strategic
+investments, than reflecting changes in fair value immediately in consolidated statement of profit and loss.
+There were no transfers between Level 1 and 2 in the periods.
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates
+their fair value.
+Reconciliation of Level 3 fair value measurements
+Unlisted shares valued at fair value
+Balance at the beginning of the year
+Purchases
+Others including disposal, fair value changes and foreign exchange fluctuations
+Balance at the end of the year
+NOTE: 45 CAPITAL MANAGEMENT
+The Group's capital management objectives are:
+- to ensure the Group's ability to continue as a going concern; and
+Year ended
+March 31, 2021
+* in Million
+Year ended
+March 31, 2020
+118.9
+71.9
+401.6
+Derivatives designated as hedges
+in Million
+118.9
+91,674.3
+Level 1
+Level 2
+Level 3
+Financial assets
+Investments
+Equity instruments - quoted #
+Equity instruments - quoted
+5,383.3
+452.6
+Equity instruments - unquoted
+5.8
+Bonds/debentures - quoted
+54,057.0
+Convertible promissory note - unquoted
+113.1
+Government securities - quoted
+27.0
+Mutual funds - unquoted
+3,923.7
+Others quoted
+-
+Venture funds - unquoted
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Total
+Financial liabilities
+27,830.7
+7,208.3
+342.4
+121.5
+7,672.2
+113.2
+Derivatives not designated as hedges
+Total
+Payables to employee
+Other financial liabilities
+Derivatives not designated as hedges
+Total
+Annual Report 2020-21
+Fair value through
+profit or loss
+Financial Statements
+Consolidated Accounts
+As at March 31, 2021
+Fair value
+through other
+comprehensive
+income
+1,718.3
+204.9
+8,185.5
+400.0
+53,073.2
+310.0
+20,554.6
+9,072.4
+* in Million
+Amortised cost
+365.7
+201.5
+90,614.0
+0.9
+793.0
+62,730.3
+1,724.8
+63.4
+5,657.7
+696.2
+670.4
+1,686.9
+148.6
+11,454.2
+82,909.5
+164,508.6
+Payables to employee
+33,430.3
+Derivatives designated as hedges
+Security deposits
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+NOTE : 43 CATEGORIES OF FINANCIAL INSTRUMENTS
+Financial assets
+Investments
+Equity instruments - quoted
+Equity instruments - unquoted
+Bonds/debentures - quoted
+Mutual funds - unquoted
+Others quoted
+Venture funds - unquoted
+Loans to related parties
+Loans to employees/others
+Trade receivables
+Deposits
+Security deposits
+Cash and cash equivalents
+Bank balances other than cash and cash equivalents
+Interest accrued on investments / balances with banks
+Refund due from government authorities
+Derivatives designated as hedges
+Unbilled revenue
+Other financial assets
+Derivatives not designated as hedges
+Total
+Financial liabilities
+Borrowings
+Current maturities of long-term debt and lease liabilities
+Trade payables
+Interest accrued
+Unpaid dividends
+Payable on purchase of property, plant and equipment
+Other financial liabilities
+5,255.5
+39,736.6
+83.5
+3,923.7
+Others quoted
+27,830.7
+Venture funds - - unquoted
+7,208.3
+Loans to related parties
+Loans to employees/others
+Trade receivables
+Deposits
+Margin money/security against guarantees/ commitments
+Security deposits
+Cash and cash equivalents
+Bank balances other than cash and cash equivalents
+Interest accrued on investments / balances with banks
+Refund due from government authorities
+Derivatives designated as hedges
+Unbilled revenue
+Other financial assets
+Derivatives not designated as hedges
+Total
+Financial liabilities
+Borrowings
+Current maturities of long-term debt and finance lease liabilities
+Trade payables
+Interest accrued
+Unpaid dividends
+Security deposits
+Payable on purchase of property, plant and equipment
+Derivatives designated as hedges
+Mutual funds - unquoted
+47.1
+Government securities - unquoted (*10,000)
+113.1
+155.9
+3,385.5
+293.2
+7,336.1
+25,969.1
+43.4
+43.4
+293.2
+115,399.6
+229
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Fair value through
+profit or loss
+As at March 31, 2020
+Fair value
+through other
+comprehensive
+income
+* in Million
+Amortised cost
+27.0
+0.0
+Financial assets
+Investments
+Equity instruments - quoted
+Equity instruments - unquoted
+Bonds/debentures - quoted
+Convertible promissory note - unquoted
+452.6
+5.8
+5,383.3
+54,057.0
+Government securities - quoted
+84.4
+604.9
+(66.2)
+118.9
+Trade payables
+13,766.3
+1,484.2
+3,307.5
+18,558.0
+36,087.5
+2,930.8
+49,853.8
+4,415.0
+11.2
+11.2
+164.9
+164.9
+1,208.7
+40,403.1
+4,516.2
+58,961.1
+As at March 31, 2020
+Russian
+US Dollar
+Euro
+Rouble
+* in Million
+South African
+Japanese Yen
+Total
+Rand
+Financial assets
+Trade receivables
+47,235.9
+5,222.1
+Cash and cash equivalents
+Borrowings
+1,181.2
+Financial liabilities
+58,240.2
+3,542.9
+The Group's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily
+in US Dollar, Euro, South African Rand, Japanese Yen and Russian Rouble) and foreign currency borrowings (primarily
+in US Dollar). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Group's
+revenues and expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between
+the Indian rupee and these foreign currencies has changed substantially in recent periods and may continue to fluctuate
+234
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+substantially in the future. Consequently, the Group uses both derivative and non-derivative financial instruments, such as
+foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to
+mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and
+recognised assets and liabilities.
+a) Significant foreign currency risk exposure relating to trade receivables, cash and cash equivalents, borrowings and
+trade payables
+in Million
+US Dollar
+Euro
+As at March 31, 2021
+Russian
+Rouble
+South African
+Rand
+Japanese Yen
+Total
+Financial assets
+Trade receivables
+46,477.0
+3,601.3
+4,110.2
+2,894.6
+Cash and cash equivalents
+1,481.0
+1,389.5
+246.6
+47,958.0
+4,990.8
+4,356.8
+2,894.6
+1,157.1
+425.8
+1,582.9
+61,783.1
+Foreign exchange risk
+1,291.0
+6,513.1
+Hedges of highly probable forecasted transactions
+The Group designates its derivative contracts that hedge foreign exchange risk associated with its highly probable
+forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow
+hedges is recorded as in other comprehensive income, and re-classified in the income statement as revenue in the
+period corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow
+hedges is immediately recorded in the consolidated statement of profit and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Group has recorded a net gain of
+*1,451.3 Million for the year ended March 31, 2021 and net loss of ₹1,184.4 Million for the year ended March 31,
+2020 in other comprehensive income. The Group also recorded hedges as a component of revenue, net gain of $108.6
+Million for year ended March 31, 2021 and net gain of ₹570.4 Million for year ended March 31, 2020 on occurrence of
+forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and
+liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in the consolidated
+statement of profit and loss. The changes in fair value of the forward contracts and option contracts, as well as the
+foreign exchange gains and losses relating to the monetary items, are recognised in the consolidated statement of
+profit and loss.
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative
+contracts:
+Amount in Million
+Currency
+Buy / Sell
+Cross
+Currency
+As at
+March 31, 2021
+As at
+March 31, 2020
+Derivatives designated as
+hedges
+Forward contracts
+ZAR
+Sell
+INR
+ZAR 300.0
+Forward contracts
+USD
+Sell
+INR
+USD 430.6
+ZAR 450.0
+USD 227.5
+Forward contracts
+USD
+Buy
+JPY
+USD 7.6
+USD 5.0
+for the year ended March 31, 2021
+48,417.1
+Notes to the Consolidated Financial Statements
+Sun Pharmaceutical Industries Limited
+3,840.9
+189.2
+4,030.1
+1,287.4
+1,287.4
+113.5
+64.7
+178.2
+57,699.8
+2,726.1
+60,425.9
+Financial liabilities
+Borrowings
+52,978.0
+1,433.3
+7,178.7
+61,590.0
+Trade payables
+35,335.4
+88,313.4
+2,494.4
+3,927.7
+121.7
+121.7
+140.0
+140.0
+552.1
+38,643.6
+7,730.8
+100,233.6
+b) Sensitivity
+c)
+For the years ended March 31, 2021 and March 31, 2020 every 5% strengthening in the exchange rate between the
+Indian rupee and the respective major currencies for the above mentioned financial assets/liabilities would decrease
+Group's profit and Group's equity by approximately ₹141.1 Million and increase Group's profit and Group's equity by
+approximately 1,990.4 Million respectively. A 5% weakening of the Indian rupee and the respective major currencies
+would lead to an equal but opposite effect.
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because
+the exposure at the end of the reporting period does not reflect the exposure during the year.
+Derivative contracts
+The Group is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in
+US Dollar, Euro, South African Rand, Japanese Yen and Russian Rouble and foreign currency debt is primarily in US
+Dollar. The Group uses foreign currency forward contracts, foreign currency option contracts, interest rate swap and
+currency swap contracts (collectively, "derivatives") to mitigate its risk of changes in foreign currency exchange rates.
+The counterparty for these contracts is generally a bank or a financial institution.
+Annual Report 2020-21
+235
+CARE
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
+market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of
+market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable
+to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and
+long-term debt. The Group is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and
+the market value of its investments. Thus, the Group's exposure to market risk is a function of investing and borrowing
+activities and revenue generating and operating activities in foreign currencies.
+Market risk
+Derivatives
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+Dividends not recognised at the end of the reporting period
+The Board of Directors at it's meeting held on May 27, 2021 have recommended payment of final dividend of $2 per share
+of face value of 1 each for the year ended March 31, 2021. The same amounts to ₹4,798.6 Million.
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and hence not
+recognised as liability.
+NOTE: 46 FINANCIAL RISK MANAGEMENT
+The Group's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Group's
+risk management assessment and policies and processes are established to identify and analyse the risks faced by the
+Group, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment
+and management policies and processes are reviewed regularly to reflect changes in market conditions and the Group's
+activities.
+Credit risk
+Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
+contractual obligations and arises principally from the Group's receivables from customers, loans and investments. Credit
+risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
+counterparty to which the Group grants credit terms in the normal course of business.
+Investments
+The Group limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have
+a good credit rating. The Group does not expect any significant losses from non-performance by these counter-parties, and
+does not have any significant concentration of exposures to specific industry sectors or specific country risks.
+Trade receivables
+The Group has used expected credit loss (ECL) model for assessing the impairment loss. For this purpose, the Group uses a
+provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal
+risk factors and historical data of credit losses from various customers.
+Financial assets for which loss allowances is measured using the expected credit loss
+Trade receivables
+less than 180 days
+180 - 365 days
+beyond 365 days
+Total
+Movement in the expected credit loss allowance on trade receivables
+Balance at the beginning of the year
+Addition
+Recoveries/reversals
+Balance at the end of the year
+Annual Report 2020-21
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2020
+89,801.7
+669.3
+2,553.4
+93,024.4
+93,375.8
+1,112.6
+Notes to the Consolidated Financial Statements
+2,237.7
+232
+Dividend distribution tax on above
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+The Group monitors capital on the basis of the carrying amount of debt as presented in the consolidated financial
+statements. The Group's objective for capital management is to maintain an optimum overall financial structure.
+a)
+Debt equity ratio
+As at
+March 31, 2021
+Debt (includes non-current borrowings, current borrowings, current maturities of lease
+liabilities and current maturities of long-term debt)
+38,685.8
+Total equity, including reserves
+464,627.8
+Debt to total equity ratio
+b)
+Dividend on equity shares paid during the year
+Dividend on equity shares
+* in Million
+As at
+March 31, 2020
+83,148.8
+0.08
+452,644.5
+0.18
+* in Million
+Year ended
+March 31, 2021
+Year ended
+March 31, 2020
+Final dividend for the year ended March 31, 2020 of 1 (year ended March 31, 2019: *2.75)
+per fully paid share
+2,399.3
+6,595.7
+Dividend distribution tax on above
+1,355.8
+Interim dividend for the year ended March 31, 2021 of 5.5 (year ended March 31, 2020: *3)
+per fully paid share
+13,191.3
+7,193.9
+1,478.7
+96,726.1
+* in Million
+Year ended
+March 31, 2021
+38,685.8
+39,736.6
+39,736.6
+36,973.8
+3.4
+36,977.2
+106,414.9
+144.2
+7,825.9
+192.4
+1,158.8
+115,399.6
+336.6
+As at March 31, 2020
+Less than 1 year
+1-3 years
+* in Million
+More than 3 years
+As at
+March 31, 2020
+62,967.9
+35,836.4
+15,338.3
+4,975.3
+83,281.5
+35,836.4
+10,537.0
+109,341.3
+984.5
+4.5
+15,342.8
+355.2
+10,541.5
+4,975.3
+64.4
+129,659.4
+1,404.1
+1,158.8
+7,822.5
+29,704.5
+As at
+March 31, 2021
+Year ended
+March 31, 2020
+2,513.7
+315.3
+2,246.1
+667.0
+(418.6)
+2,410.4
+(399.4)
+2,513.7
+233
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Other than Trade receivables, the Group has recognised an allowance of 15.3 Million (March 31, 2020: *10.2 Million)
+against past due loans including interest and *500.0 Million (March 31, 2020 : 500.0 Million) of other receivables based on
+assessment regarding recoverability of the same.
+Liquidity risk
+Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group
+manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities
+when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Group's
+reputation.
+USD
+The Group had unutilised working capital lines from banks of ₹68,518.2 Million as on March 31, 2021 (March 31, 2020:
+*60,566.7 Million).
+Non derivative
+Borrowings
+Trade payables
+Other financial liabilities
+Derivatives
+Non derivative
+Borrowings
+Trade payables
+Other financial liabilities
+* in Million
+As at March 31, 2021
+Less than 1 year
+1-3 years
+More than 3 years
+The table below provides details regarding the contractual maturities of significant financial liabilities :
+595.4
+300.5
+1,009.7
+iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries
+of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
+iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best
+estimate of the mortality of plan participants both during and after their employment. An increase in the life
+expectancy of the plan participants will increase the plan's liability.
+Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be
+partially offset by an increase in the return on the plan's debt investments.
+Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate
+determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual
+return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by
+investment in LIC managed fund.
+ii)
+i)
+These plans typically expose the parent company and Indian subsidiaries to actuarial risks such as: investment risk,
+interest rate risk, longevity risk and salary risk.
+Risks
+The parent company and Indian subsidiaries have an obligation towards pension, a defined benefit retirement plan,
+with respect to certain employees, who had already retired before March 01, 2013, will continue to receive the
+pension as per the pension plan.
+Pension fund
+b)
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund
+Scheme. It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to
+specific benefit at the time of retirement or termination of the employment on completion of five years or death while
+in employment. The level of benefit provided depends on the member's length of service and salary at the time of
+retirement/termination age. Provision for gratuity is based on actuarial valuation done by an independent actuary as
+at the year end. Each year, the parent company and Indian subsidiaries review the level of funding in gratuity fund.
+The parent company and Indian subsidiaries decides its contribution based on the results of its annual review. The
+parent company and Indian subsidiaries aim to keep annual contributions relatively stable at a level such that the fund
+assets meets the requirements of gratuity payments in short to medium term.
+a) Gratuity
+Defined benefit plan
+Financial Statements
+Consolidated Accounts
+Other long term benefit plan
+Actuarial valuation for compensated absences is done as at the year end and the provision is made as per the parent
+company and Indian subsidiaries rules with corresponding charge to the consolidated statement of profit and loss
+amounting to *632.6 Million (March 31, 2020: *586.4 Million) and it covers all regular employees. Major drivers in
+actuarial assumptions, typically, are years of service and employee compensation.
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as
+at the year end using the 'Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating
+to defined benefit obligation are recognised in other comprehensive income whereas gains and losses in respect of
+other long term employee benefit plans are recognised in the consolidated statement of profit and loss.
+Annual Report 2020-21
+363.4
+441.2
+Current service cost
+statement of profit and loss (Refer note 34)
+Gratuity
+(Funded)
+Year ended March 31, 2020
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+for the year ended March 31, 2021
+(Unfunded)
+* in Million
+Expense recognised in the consolidated
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+CARE
+Sun Pharmaceutical Industries Limited
+243
+Year ended March 31, 2021
+Pension Fund
+Interest cost
+Notes to the Consolidated Financial Statements
+0.9
+* in Million
+As at
+March 31, 2020
+As at
+March 31, 2021
+NOTE: 55 EMPLOYEE BENEFITS PLANS
+Later than one year and not later than five years
+Later than five years
+Less than one year
+(e) The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted basis:
+3,440.3
+153.6
+(959.7)
+253.2
+(27.4)
+3,450.9
+184.8
+(1,177.9)
+(647.3)
+(371.0)
+3,294.1
+1,134.2
+2,099.8
+1,078.4
+2,076.7
+1,593.4
+53.2
+32.0
+63.2
+65.3
+920.2
+1,022.7
+March 31, 2020
+1.2
+* in Million
+Year ended
+242
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+Contribution to Superannuation Fund
+Contribution to Provident Fund and Family Pension Fund
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Corporation
+(ESIC) and other Funds which covers all regular employees of the parent company and Indian subsidiaries. While the
+employees and the parent company and Indian subsidiaries make predetermined contributions to the Provident Fund and
+ESIC, contribution to the Family Pension Fund and other statutory funds are made only by the parent company and Indian
+subsidiaries. The contributions are normally based on a certain percentage of the employee's salary. Amount recognised as
+expense in respect of these defined contribution plans, aggregate to ₹1,120.9 Million (March 31, 2020 : 1,037.8 Million).
+Defined contribution plan
+1,839.3
+Year ended
+March 31, 2021
+65.6
+264.2
+67.5
+22.6
+83.7
+68.8
+due to experience
+44.6
+58.2
+(91.1)
+5.4
+due to change in financial assumptions
+106.3
+(4.6)
+due to change in demographic assumptions
+Actuarial (gains)/losses on obligations
+(294.1)
+(87.9)
+183.7
+Acquisition Adjustment
+Obligation as at the year end
+1,087.6
+(3,470.6)
+594.5
+4,065.1
+(Funded)
+4,607.1
+(4,097.4)
+509.7
+Gratuity
+As at
+* in Million
+(151.4)
+Gratuity
+(Funded)
+Net liability recognised in the consolidated financial statement
+Fair value of plan assets
+Present value of commitments (as per actuarial valuation)
+Reconciliation of liability/(asset) recognised in the consolidated balance sheet
+2.8
+4,065.1
+Expenses that are allowed on payment basis
+Others
+4,607.1
+As at
+March 31, 2021
+(61.9)
+Benefits paid
+243.1
+80.8
+(12.0)
+74.2
+Actuarial loss/(gain) on plan assets
+Expense/(income) charged to other
+comprehensive income
+Actuarial loss (gain) on defined benefit
+obligation
+recognised in other comprehensive income
+Remeasurement of defined benefit obligation
+334.6
+365.6
+480.0
+65.6
+Expense charged to the consolidated statement
+of profit and loss
+(240.9)
+(225.4)
+Expected return on plan assets
+243.1
+67.5
+1,402.1
+19.7
+74.2
+67.5
+264.2
+65.6
+Interest cost
+363.4
+441.2
+Current service cost
+2.3
+3,415.3
+4,065.1
+1,009.7
+Obligations as at the beginning of the year
+Reconciliation of defined benefit obligations
+336.9
+80.8
+7.7
+949.3
+Year ended
+1,346.4
+Year ended
+March 31, 2020
+2,399,334,970
+29,038.2
+March 31, 2020
+Year ended
+* in Million
+Year ended
+March 31, 2021
+Basic earnings per share (in )
+Nominal value per share (in *)
+Profit for the year (in Million) - used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic and diluted earnings per share
+NOTE: 51 EARNINGS PER SHARE
+The unused tax credits will expire from financial year 2022-23 to financial year 2035-36 and unused tax losses will expire
+from financial year 2021-22 to 2040-41. However in case of certain overseas subsidiaries there is no expiry period for tax
+losses and unused tax credits.
+20,237.5
+15,379.4
+8,819.0
+9,293.2
+37,649.3
+2,399,334,970
+1
+12.1
+Revenue by Geography
+The reportable segments derives their revenues from the sale of pharmaceuticals products (generics, speciality, API,
+etc.). The CODM reviews revenue as the performance indicator. The measurement of each segment's revenues, expenses
+and assets is consistent with the accounting policies that are used in preparation of the Group's consolidated financial
+statements.
+Rest of the world
+4.
+Emerging markets
+3.
+United States of America
+30,608.0
+2.
+1.
+The Chief Operating Decision Maker ('CODM') evaluates the Group's performance and allocates resources based on an
+analysis of various performance indicators by reportable segments. The Group's reportable segments are as follows:
+NOTE: 52 SEGMENT REPORTING
+Diluted earnings per share (in)
+15.7
+12.1
+1
+15.7
+India
+India
+30,014.5
+* in Million
+As at
+March 31, 2020
+1,428.8
+210.3
+1,218.5
+MAT credit entitlement
+497.0
+(6.7)
+74.9
+428.8
+165.5
+1.4
+35.8
+128.3
+331.5
+(8.1)
+39.1
+1,647.3
+285.2
+(6.7)
+1,925.8
+As at
+March 31, 2021
+97,221.0
+Unused tax credits (including MAT credit entitlement)
+Deductible temporary differences
+Unabsorbed depreciation
+Tax losses (includes capital in nature)
+iii) Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have
+been recognised are attributable to the following:
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+96,960.2
+CARE
+239
+Annual Report 2020-21
+* Movement during the year includes foreign currency translation difference amounting to ₹463.5 Million gain for the year ended March 31, 2021
+and also includes on account of acquisition 616.0 Million.
+445.1
+6.7
+(143.0)
+581.4
+Sun Pharmaceutical Industries Limited
+United States of America
+Emerging markets
+Rest of the world
+CARE
+Sun Pharmaceutical Industries Limited
+241
+Annual Report 2020-21
+(b) The Group has given certain premises and plant and machinery under operating lease or leave and license agreements
+for a period ranging upto 10 years. These includes both cancellable and non-cancellable leases and agreements. The
+Group has received refundable interest free security deposits, where applicable, in accordance with agreed terms.
+(a) Effective April 01, 2019, the Company has adopted Ind AS 116 "Leases", and applied to all lease contracts existing on
+April 01, 2019 using the modified retrospective method. Accordingly, the Company has recognised a lease liability
+measured at the present value of the remaining lease payments, and right-of-use (ROU) asset at an amount equal to
+lease liability (adjusted for any related prepayments). Management has exercised judgement in determining whether
+extension and termination options are reasonably certain to be exercised. Expenses related to short term leases and
+low-value assets for the year ended March 31, 2021 is ₹198.0 Million (March 31, 2020: *193.7 Million).
+NOTE: 54 LEASES
+The performance obligation is satisfied when control of the goods or services are transferred to the customers based on
+the contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
+Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
+revenue received from customer for which performance obligation has not yet been completed.
+9,836.7
+94,212.4
+434.1
+9,328.4
+90,614.0
+670.4
+March 31, 2020
+As at
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+(c) Operating lease
+Group as lessor
+Year ended
+March 31, 2021
+* in Million
+149.5
+204.7
+Year ended
+March 31, 2020
+* in Million
+Year ended
+March 31, 2021
+Balance at end of the year
+As at
+March 31, 2021
+Translation difference
+Interest expense on lease liability
+Deletions
+Additions
+Balance as at beginning of the year
+(d) The following is the movement of lease liabilities
+later than one year and not later than five years
+The future minimum lease payments under non-cancellable operating lease
+not later than one year
+Payment towards lease liabilities
+* in Million
+323,251.7
+331,391.8
+No customer contributed more than 10.0% of total revenues for the year ended March 31, 2021 and March 31, 2020.
+NOTE: 53 REVENUE FROM CONTRACTS WITH CUSTOMERS
+In view of the interwoven / intermix nature of business and manufacturing facility, other segmental information is not
+ascertainable.
+Financial Statements
+Consolidated Accounts
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+323,251.7
+50,029.5
+The Company has recorded an additional amount of ₹1,520.1 Million (March 31, 2020 : ₹3,175.8 Million) as deferred
+revenue pursuant to the requirements of Ind AS 115. Revenue of ₹1,740.5 Million (March 31,2020 : ₹1,543.8 Million) has
+been recognised as Revenue from contract with customer pursuant to completion of performance obligation in respect of
+the above contracts.
+61,972.5
+109,387.0
+101,862.7
+109,498.0
+103,564.3
+Year ended
+March 31, 2020
+Year ended
+March 31, 2021
+* in Million
+240
+64,053.0
+54,276.5
+331,391.8
+3,440.3
+The reconciling items of revenue recognised in the consolidated statement of profit and loss with the contracted price are
+as follows :
+Less:
+(265,868.8)
+(279,639.6)
+(257,377.5)
+(270,421.7)
+(8,491.3)
+(9,217.9)
+589,120.5
+Revenue as per contracted price, net of returns
+* in Million
+Year ended
+March 31, 2020
+Contract liabilities
+Contract assets
+Trade receivables
+Contract balances
+Revenue from contracts with customers
+Chargebacks, Rebates, discounts and others
+Provision for sales return
+Year ended
+March 31, 2021
+611,031.4
+March 31, 2021
+Gratuity
+March 31, 2020
+Year ended
+March 31, 2020
+The Group continues to monitor the impact of COVID-19
+on its business, including its impact on customers,
+supply-chain, employees and logistics. Due care has
+been exercised, in concluding on significant accounting
+judgements and estimates, including in relation to
+recoverability of receivables, assessment of impairment of
+goodwill and intangibles, investments and inventory, based
+on the information available to date, while preparing the
+Group's consolidated financial statements as of and for the
+year ended March 31, 2021.
+NOTE: 65
+The parent company had announced buy-back of equity
+shares from open market through stock market mechanism
+as prescribed by Securities and Exchange Board of India
+(Buy-Back of Securities) Regulations, 2018 at a maximum
+price of *425/- per equity share, for an aggregate maximum
+amount of up to 17,000 Million. The Buy-back period
+commenced on March 26, 2020 and ended on September
+25, 2020. No equity shares were bought back under the
+buy-back as the volume weighted average market price of
+equity shares of the parent company during the buy-back
+period was higher than the maximum buy-back price.
+NOTE: 64
+The date of implementation of the Code on Wages 2019
+and the Code on Social Security, 2020 is yet to be notified
+by the Government. The Company will assess the impact
+of these Codes and give effect in the consolidated financial
+statement when the Rules/Schemes thereunder are
+notified.
+NOTE: 63
+demonstrate sustainable cGMP compliance as required
+by the consent decree. The parent company continues
+to receive approval of applications, manufacture and
+distribute products to the U.S from this facility.
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+CARE
+Sun Pharmaceutical Industries Limited
+247
+Annual Report 2020-21
+In September 2013, the USFDA had put the Mohali
+facility under import alert and was also subjected to
+certain provisions of the consent decree of permanent
+injunction entered in January 2012 by erstwhile
+Ranbaxy Laboratories Ltd (which was merged with
+Sun Pharmaceutical Industries Ltd in March 2015). In
+March 2017, the USFDA lifted the import alert and
+indicated that the facility was in compliance with
+the requirements of cGMP provisions mentioned in
+the consent decree. The Mohali facility continues to
+In December 2019, the USFDA inspected the Halol
+facility and issued Form 483 with 8 observations. Post
+the submission of the parent company's response in
+January 2020, the USFDA classified the inspection
+status as Official Action Indicated (OAI). The parent
+company was in continuous communication with
+the USFDA to resolve the outstanding issues and is
+awaiting a re-inspection by USFDA to resolve the OAI
+status. However, due to ongoing COVID-19 pandemic
+and travel restrictions, the re-inspection is delayed.
+The parent company continues to manufacture and
+distribute products to the U.S from this facility.
+However, the OAI status normally implies that the
+USFDA may put all new approvals from the Halol
+facility on hold till the OAI status is changed.
+NOTE: 66 DETAILS OF LONG-TERM BORROWINGS
+AND CURRENT MATURITIES OF LONG-TERM DEBT
+[INCLUDED UNDER OTHER CURRENT FINANCIAL
+LIABILITIES]
+A Secured term loan from other parties:
+(i) Secured term loan from Department of
+Biotechnology of 75.7 Million (March 31,
+2020 108.2 Million) has been secured by
+hypothecation of movable assets of the parent
+company. The loan is repayable in 10 equal half
+yearly installments commencing from December
+14, 2020.
+B
+142.2
+2,370.9
+Less: Deferred tax assets
+248
+USD 50 Million (March 31, 2020 : USD 50 Million)
+equivalent to *3,657.4 Million (March 31, 2020 :
+*3,771.5 Million). The loan was taken on October
+03, 2018 and is repayable in 2 equal installments
+of USD 25 Million each. The first installment
+USD Nil (March 31, 2020 : USD 25 Million)
+equivalent to Nil (March 31, 2020: *1,885.8
+Million). The loan, orignally taken on September
+20, 2012 and was repayable in 2 equal
+installments of USD 25 Million each. The first
+installment of USD 25 Million had been repaid
+during year ended March 31, 2020, second
+installment of USD 25 Million is repaid during the
+year.
+USD Nil (March 31, 2020 : USD 100 Million)
+equivalent to Nil (March 31, 2020: 7,543.0
+Million). The loan, orignally taken on June 04,
+2013 and was repayable in 3 installments viz.
+first installment of USD 30 Million was due on
+June 01, 2020, second installment of USD 30
+Million was due on December 01, 2020 and
+last installment of USD 40 Million was due on
+December 01, 2021. Two installment of USD 30
+Million and one installment of USD 40 Million has
+been repaid during the year.
+The USFDA, on January 23, 2014, had prohibited using
+API manufactured at Toansa facility for manufacture
+of finished drug products intended for distribution
+in the U.S. market. Consequentially, the Toansa
+manufacturing facility was subject to certain provisions
+of the consent decree of permanent injunction entered
+in January 2012 by erstwhile Ranbaxy Laboratories Ltd
+(which was merged with Sun Pharmaceutical Industries
+Ltd in March 2015). In addition, the Department of
+Justice of the USA ('US DOJ'), United States Attorney's
+Office for the District of New Jersey had also issued
+an administrative subpoena dated March 13, 2014
+seeking information. The parent company continues to
+fully co-operate and provide requisite information to
+the US DOJ.
+Unsecured External Commercial Borrowings
+(ECBs) has 2 loan aggregating of USD 100 Million
+(March 31, 2020 : USD 225 Million) equivalent
+to 7,314.7 Million (March 31, 2020: *16,971.8
+Million) and 1 loan aggregating of JPY 5,000
+Million (March 31, 2020 : JPY 10,317.5 Million)
+equivalent to 3,307.4 Million (March 31, 2020 :
+*7,178.8 Million). For the ECB loans outstanding
+as at March 31, 2021, the terms of repayment for
+borrowings are as follows:
+b)
+a)
+(i)
+Unsecured
+Term loan from banks:
+The Company has not defaulted on repayment
+of loan and interest payment thereon during the
+year. The above secured loans have been availed
+at an interest rate range of 1% to 3%.
+(ii) Secured term loan from Industrial development
+fund, Russia of RUB 100.1 Million equivalent to
+*96.7 Million (March 31, 2020: NIL) has been
+secured by bank guarantee. The loan was taken
+on July 14, 2020 and is repayable in 4 equal
+quarterly installments of RUB 25 Million each
+commecing from September 30, 2021.
+c)
+Since the USFDA import alert at Karkhadi facility
+in March 2014, the parent company remained fully
+committed to implement all corrective measures to
+address the observations made by the USFDA with the
+help of third party consultant. The parent company had
+completed all the action items to address the USFDA
+warning letter observations issued in May 2014. The
+parent company is awaiting a re-inspection of the
+facility by the USFDA to resolve the import alert. The
+contribution of this facility to Company's revenues was
+negligible.
+d)
+c)
+NOTE: 61 EXCEPTIONAL ITEMS INCLUDES THE
+FOLLOWING:
+* Includes provision for trade commitments, discounts, rebates, price reductions, product returns, chargeback, medicaids, contingency
+provision and clawback.
+41,622.8
+(552.3)
+(37,948.4)
+(46,298.7)
+45,371.5
+a) On July 23, 2020, Taro Pharmaceuticals U.S.A.,
+Inc. ("Taro U.S.A.") came to a global resolution with
+the DOJ, Antitrust Division and Civil Division in
+connection with DOJ's multi-year investigation into
+the U.S. generic pharmaceutical industry. Under a
+Deferred Prosecution Agreement ("Agreement")
+reached with DOJ Antitrust Division, the DOJ filed an
+Information relating to conduct that occurred between
+26,989.0
+36,819.9
+51,653.9
+* in Million
+Add/(less): Foreign currency exchange fluctuation
+Closing balance
+Less: Utilisation/settlement/reversal
+Add: Provision for the year
+Opening balance
+* in Million
+Year ended
+March 31, 2020*
+2,228.7
+2,407.8
+36,819.9
+246
+b)
+a)
+NOTE: 62
+Tax gain (exceptional) for the year ended March
+31, 2021 is on account of creation of deferred tax
+asset amounting to ₹2,882.8 Million arising out of
+subsequent measurement attributable to restructuring
+of an acquired entity.
+Dusa Pharmaceuticals, Inc reached an agreement
+with the U.S. Department of Justice and an individual
+to resolve allegations relating to the sales, marketing
+and promotion of two of its products - Levulan and
+Blu-u, as extension of a Civil Investigation Demand
+for the period January 2010 to September 2017. The
+Company had made a provision of ₹1,563.6 Million for
+this settlement during the year ended March 31, 2020.
+The Hon'ble Supreme Court of India while disposing
+various Special leave petitions filed by the Central
+Government with respect to central excise refund
+claims of various eligible industries under the Industrial
+Policies and Central Excise notifications in relation
+thereto, had held that the amendments to original
+notification restricting the central excise refund were
+clarificatory in nature. Based on the judgement by
+the Hon'ble Supreme Court of India, an amount of
+*1,042.8 Million including interest was provided in the
+consolidated financial statements for the year ended
+March 31, 2021.
+On March 25, 2021 the Court of Justice of the
+European Union (CJEU) issued a final judgment and
+upheld the European Commission's ("EC") decision
+dated June 19, 2013 that a settlement agreement
+between Ranbaxy (U.K.) Limited and Ranbaxy
+Laboratories Limited (together "Ranbaxy") with
+Lundbeck was anti-competitive. Ranbaxy had made
+a provisional payment of the fine of Euros 10.3
+Million on September 20, 2013. Since there are
+no further rights of appeal, this amount of *895.6
+Million (inclusive of legal charges) was provided in the
+consolidated financial statements for the year ended
+March 31, 2021.
+2013 and 2015. If Taro U.S.A adheres to the terms
+of the Agreement, including paying a penalty of USD
+205.7 Million (equivalent to 15,601.8 Million), the
+DOJ will dismiss the Information at the end of a three-
+year period. Taro U.S.A. has also reached a framework
+understanding with DOJ Civil Division, subject to final
+agreement and agency authorisation, in which Taro
+U.S.A. has agreed to pay USD 213.3 Million (equivalent
+to 16,179.6 Million) to resolve all claims related to
+federal healthcare programs. Accordingly, an amount
+Further, in respect of ongoing multi-jurisdiction civil
+antitrust matters, currently in progress, Taro U.S.A, has
+made a provision of USD 140 Million (equivalent to
+*10,384.4 Million) for the year ended March 31, 2021.
+Exceptional tax for the year ended March 31, 2021,
+is on account of recognition of deferred tax asset
+amounting to 1,212.3 Million arising out above
+settlement.
+e)
+d)
+b)
+Consolidated Accounts
+Financial Statements
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+of USD 418.9 Million (equivalent to ₹31,781.4 Million)
+was provided in the year ended March 31, 2021.
+In respect of any present obligation as a result of a past
+event that could lead to a probable outflow of resources,
+provision has been made, which would be required to settle
+the obligation. The said provisions are made as per the
+best estimate of the management and disclosure as per Ind
+AS 37 - "Provisions, Contingent Liabilities and Contingent
+Assets" has been given below:
+2,370.9
+* in Million
+3,321.8
+8,632.1
+9,979.9
+(1,417.1)
+8,562.8
+Intangible assets
+2,854.5
+(462.5)
+2,392.0
+Others
+MAT credit entitlement
+4,492.2
+961.5
+(234.9)
+5,218.8
+5,310.3
+Unabsorbed depreciation / carried forward losses
+Inventory and other related items
+7,015.9
+37.3
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+NOTE: 50 DEFERRED TAX
+i)
+Deferred tax assets (Net)
+Financial Statements
+Consolidated Accounts
+28,370.6
+* in Million
+Profit/(loss)
+movement during
+the year *
+Other
+comprehensive
+income movement
+during the year
+Closing balance
+March 31, 2021
+Deferred tax assets
+Expenses that are allowed on payment basis
+5,733.7
+1,244.9
+Opening balance
+April 01, 2020
+3,648.6
+(197.6)
+31,821.6
+9,631.7
+31,752.9
+4,435.6
+(624.1)
+35,564.4
+ii)
+Deferred tax liabilities (Net)
+426.5
+Deferred tax liabilities
+Opening balance
+April 01, 2020
+Profit/(loss)
+movement during
+the year *
+Other
+comprehensive
+income movement
+during the year *
+2,228.7
+142.2
+Difference between written down value of
+property, plant and equipment and capital work-in-
+progress as per books of accounts and income tax
+and others
+Closing balance
+March 31, 2021
+1,190.4
+2,103.1
+11,397.1
+1,977.4
+13,374.5
+39,767.7
+5,626.0
+(197.6)
+45,196.1
+8,014.8
+Less: Deferred tax liabilities
+6,971.9
+556.7
+7,528.6
+property, plant and equipment and capital work-in-
+progress as per books of accounts and income tax
+Others
+1,042.9
+633.7
+426.5
+Difference between written down value of
+NOTE: 60
+Year ended
+March 31, 2021*
+NOTE: 59
+In range of
+N.A.
+In range of
+N.A.
+6.50%
+N.A.
+6.25%
+N.A.
+6.10% to 6.50%
+of
+In range
+6.50%
+6.25%
+6.45%
+As at March 31, 2020
+Pension Fund
+Gratuity
+(Unfunded)
+(Funded)
+7.00% to 9.00%
+7.00% to 10.00%
+N.A.
+N.A
+As at March 31, 2021
+Pension Fund
+(Unfunded)
+* in Million
+58 to 60
+N.A.
+In range of
+8.00% to 13.45%
+The Group does not have any material associates or joint
+ventures warranting a disclosure in respect of individual
+associate or joint venture. The Group's share of other
+comprehensive income is Nil (March 31, 2020: Nil)
+in respect of such associates and joint ventures. The
+unrecognised share of loss of Nil (March 31, 2020: *Nil) in
+respect of such associates and joint ventures.
+Lives Morality
+Gratuity
+(Funded)
+Indian Assured
+(2012-14)
+In range of
+12.40% to
+13.45%
+58 to 60
+N.A.
+(2012-14)
+N.A.
+Indian Assured
+Lives Morality
+Indian Assured
+Lives Mortality
+N.A
+N.A.
+Indian Assured
+Lives Mortality
+(2012-14)
+N.A.
+As at March 31, 2020
+Pension Fund
+(Unfunded)
+Financial Statements
+Consolidated Accounts
+(2.3)
+(19.7)
+Actuarial gain/(loss)
+0.3
+2.0
+Assets transferred in/Acquisitions
+3,385.7
+240.9
+(Funded)
+225.4
+Expected return
+3,470.6
+Plan assets as at the beginning of the year
+Reconciliation of plan assets
+(Funded)
+Gratuity
+Employer's contribution during the year
+570.5
+140.1
+Benefits paid
+The sensitivity analysis have been determined based on
+method that extrapolates the impact on defined benefit
+obligation as a reasonable change in key assumptions
+occurring at the end of the reporting period.
+Sensitivity analysis:
+Retirement age (years)
+Employee turnover
+Interest rate guarantee
+Mortality
+Expected return on plan assets
+Expected rate of salary increase
+Discount rate
+As at March 31, 2021
+Assumptions:
+Notes to the Consolidated Financial Statements
+244
+3,470.6
+4,097.4
+Plan assets as at the year end
+(294.1)
+(151.4)
+for the year ended March 31, 2021
+Gratuity
+(Funded)
+(2012-14)
+Gratuity
+(Funded)
+77.1
+11.3
+4,044.3
+2,122.9
+4,261.0
+2,187.1
+469.4
+85.5
+487.2
+Pension Fund
+(Unfunded)
+470.3
+86.1
+567.0
+90.4
+465.0
+2,919.4
+1,089.6
+9.7
+66.2
+2,459.6
+Expenditure related to Corporate Social Responsibility as
+per Section 135 of the Companies Act, 2013 read with
+Schedule VII thereof: 575.6 Million (March 31,2020:
+214.2 Million).
+NOTE: 58
+-
+NOTE : 57 RELATED PARTY DISCLOSURES (IND AS-24)
+AS PER ANNEXURE 'B'.
+price of USD 91.00 per share. During the year ended March
+31, 2021, in accordance with a Rule 10b5-1 program, Taro
+repurchased 332,033 shares at an average price of USD
+75.23 per share.
+On November 4, 2019, Taro announced that its Board of
+Directors approved a USD 300 Million share repurchase of
+ordinary shares. On November 15, 2019, Taro commenced
+a modified "Dutch auction" tender offer to repurchase
+up to USD 225 Million in value of its ordinary shares. In
+accordance with the terms and conditions of the tender
+offer, which expired on December 16, 2019, Taro accepted
+for payment 280,719 ordinary shares at the final purchase
+On November 23, 2016, Taro announced that its Board
+of Directors approved a USD 250 Million repurchase of
+ordinary shares, which was completed on January 11, 2019.
+Under the program, Taro bought back 2,493,378 of its
+ordinary shares in open market transactions, in accordance
+with a Rule 10b5-1 program, at an average price of USD
+100.28 per share. During the year ended March 31, 2019,
+Taro repurchased 888,719 shares through the November
+2016 program at an average price of USD 95.05 per share.
+87.1
+NOTE: 56
+The contribution expected to be made by the parent
+company and Indian subsidiaries for gratuity, during
+financial year ending March 31, 2022 is ₹923.2 Million
+(March 31, 2021 976.1 Million).
+for the year ended March 31, 2021
+Notes to the Consolidated Financial Statements
+CARE
+Sun Pharmaceutical Industries Limited
+245
+935.1
+In the United States, the Company sponsors a defined
+contribution 401(k) retirement savings plan for all
+eligible employees who meet minimum age and
+service requirements. The Company has no further
+obligations under the plan beyond its annual matching
+contributions.
+566.2
+89.5
+507.8
+1st
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation for
+next
+46.8
+45.1
+(42.2)
+(40.9)
+91.5
+year
+(263.6)
+289.3
+271.1
+(241.0)
+(84.7)
+95.6
+(266.8)
+299.0
+(89.5)
+100.7
+Impact on defined benefit obligation
+Delta effect of +1% change in discount rate
+Delta effect of -1% change in discount rate
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee
+turnover
+261.5
+2nd year
+(237.3)
+4th year
+3rd year
+557.0
+92.5
+683.4
+88.8
+812.0
+93.6
+Annual Report 2020-21
+88.0
+Insurer managed funds (Funded with LIC, break-up
+not available)
+Bonds and securities
+Central government securities
+The major categories of plan assets are as under:
+Thereafter
+year
+5th
+Surplus fund lying uninvested
+(397.4)
+(0.7)
+(397.4)
+(1.1)
+(0.3) (1,379.3)
+124.4
+0.2
+14.1
+0.3
+(0.0) (130.4)
+0.0
+14.1
+0.0
+(0.0) (140.4)
+0.0
+124.4
+209.0
+29 Sun Pharma East Africa Limited
+30 Sun Pharma ANZ Pty Ltd
+31 Ranbaxy Farmaceutica Ltda.
+32 Sun Pharma Canada Inc.
+(47.8)
+(2.6)
+(0.0)
+(2.6)
+(0.0)
+(23.0)
+(0.0)
+(51.5)
+(0.1)
+(0.1)
+(0.1)
+236.1
+0.0
+258
+(Formerly known as Ranbaxy
+Pharmaceuticals Canada Inc.)
+33 Sun Pharma Egypt Ltd LLC
+34 Rexcel Egypt LLC
+(47.8)
+(0.1)
+(51.5)
+(41.9)
+(0.0)
+(41.9)
+78.1
+0.3
+78.1
+36 Sun Pharmaceutical Industries
+S.A.C.
+(0.0)
+(124.5)
+0.1
+30.7
+0.1
+30.7
+37 Ranbaxy (Poland) SP. Z O.O.
+0.0
+245.4
+0.3
+0.1
+0.1
+22.0
+38 Terapia SA
+1.8
+8,870.1
+10.7
+3,099.8
+11.0
+3,099.8
+39 AO Ranbaxy
+0.1
+737.8
+(1.4)
+22.0
+(396.5)
+107.2
+(1.2)
+Name of the entity
+No.
+As % of
+consolidated in Million
+As % of
+consolidated
+profit or
+As % of
+As % of
+* in Million
+consolidated in Million
+consolidated in Million
+net assets
+OCI
+TCI
+0.0
+(loss)
+34 Ranbaxy Ireland Limited
+35 Sun Pharma Italia srl (Formerly
+known as Ranbaxy Italia S.P.A.)
+0.3
+1,280.6
+0.2
+65.2
+0.2
+65.2
+0.1
+596.6
+(0.0)
+(1.2)
+(0.0)
+33 Basics GmbH
+(TCI)
+2020-21
+(1.4)
+40 JSC Biosintez
+0.4
+45 Ranbaxy Holdings (U.K.)
+1,740.7
+0.6 3,108.2
+0.3
+81.9
+0.3
+81.9
+(0.0)
+(0.7)
+(0.0)
+(0.7)
+Limited
+14.4
+44 Ranbaxy (U.K.) Limited
+71,330.1
+1,623.9 #
+(22.5)
+203.9
+6.5 1,827.8#
+46 Sun Pharmaceutical Holding
+USA Inc (Consolidated with its
+Subsidiaries and its Associate)
+47 Ranbaxy (Thailand) Co., Ltd.
+48 Sun Pharmaceuticals Morocco
+LLC
+0.0
+239.5
+0.1
+23.2
+0.1
+23.2
+0.0
+5.6
+(396.5)
+Laboratorios Ranbaxy, S.L.U.)
+26.5
+0.2
+824.6
+1.1
+314.3
+1.1
+314.3
+41 Ranbaxy South Africa (Pty)
+0.2
+1,016.3
+0.4
+129.6
+0.5
+129.6
+(Formerly known as
+Ltd. (Consolidated with its
+42 Ranbaxy Pharmaceuticals (Pty)
+Ltd.
+0.4
+2,105.4
+0.5
+133.7
+0.5
+133.7
+43 Sun Pharma Laboratorios,S.L.U.
+0.1
+549.9
+0.1
+26.5
+0.1
+Subsidiary)
+Share in total
+comprehensive income
+Share in other
+comprehensive income
+(OCI)
+2020-21
+2020-21
+(0.1)
+(501.1)
+0.2
+55.2
+21 Sun Pharmaceuticals Korea Ltd.
+0.0
+0.3
+0.5
+2,614.6
+0.1
+24.9
+0.0
+3.3
+20 Sun Pharma Philippines, Inc.
+0.2
+0.0
+0.3
+0.1
+24.9
+22 Sun Pharma Japan Ltd.
+(Consolidated with its
+Subsidiary)
+23 Sun Laboratories FZE
+24 Taro Pharmaceutical Industries
+Ltd. (TARO) (Consolidated with
+its Subsidiaries)
+25 Sun Pharma Switzerland Ltd.
+26 Sun Pharma Holdings
+27 Sun Pharma East Africa Limited
+28 Sun Pharma ANZ Pty Ltd
+29 Ranbaxy Farmaceutica Ltda.
+30 Sun Pharma Canada Inc.
+(Formerly known as Ranbaxy
+Pharmaceuticals Canada Inc.)
+31 Sun Pharma Egypt Ltd LLC
+32 Rexcel Egypt LLC
+Annual Report 2020-21
+55.2
+(0.1) (412.4)
+25.5 126,079.4
+3.3
+4.6
+(6.0)
+(0.0)
+(6.0)
+15 Sun Pharmaceutical Industries
+(Europe) B.V.
+0.0
+83.8
+0.1
+41.0
+0.1
+41.0
+16 Sun Pharmaceuticals Germany
+GmbH
+(0.0)
+(105.2)
+0.0
+0.1
+0.1
+40.4
+17 Sun Pharmaceuticals France
+18 Sun Pharma Global FZE
+(Consolidated with a Joint
+venture)
+(0.0)
+(2.4)
+(0.0)
+(2.4)
+10.6 52,451.4
+(44.6) (12,961.0)*
+(119.8) 1,084.0
+(42.2) (11,877.0)*
+19 Sun Pharmaceuticals SA (Pty)
+Ltd.
+0.0
+40.4
+1.0
+282.7
+1.0
+0.4
+103.5
+0.4
+103.5
+0.1
+442.9
+(0.3)
+(72.8)
+(0.3)
+(72.8)
+(0.0)
+(22.6)
+(0.0)
+325.2
+(0.3)
+(0.3)
+255
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+(Annexure 'A')
+Disclosure of additional information pertaining to the parent company, subsidiaries, associates and joint venture as per
+Schedule III of Companies Act, 2013:
+Net Assets, i.e., total assets
+Share in profit or (loss)
+minus total liabilities
+S.
+2020-21
+(0.0)
+0.6
+0.0
+0.6
+282.7
+(98.6) (28,626.6)
+(112.0)
+1,013.4
+(98.2) (27,613.2)
+0.0
+8.6
+(0.0)
+(0.6)
+(0.0)
+(0.6)
+46.4 229,551.6
+(0.1)
+(29.6)
+(0.1)
+(29.6)
+(0.1)
+(110.9)
+0.1
+19.8
+0.1
+19.8
+0.1
+(0.2) (1,215.8)
+0.1
+283.8
+1.5
+432.3
+1.5
+432.3
+0.0
+130.6
+0.4
+112.7
+0.4
+(2.5) (1,396.7)
+11 Zenotech Laboratories Limited
+0.3
+1,278.3
+(0.2)
+(72.5)
+0.0
+0.5
+(0.1)
+(72.0)
+12 Sun Pharma Distributors
+Limited
+0.1
+674.8
+(0.4)
+1.8
+(0.0)
+(1.0)
+1.2
+673.4
+13 Caraco Pharmaceuticals Private
+Limited
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+Foreign
+1 Sun Pharmaceutical
+674.4
+(Bangladesh) Limited
+(0.0)
+(3.7)
+(0.0)
+(0.1)
+Softdeal Trading Company
+0.0
+11.1
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+Private Limited
+8 Universal Enterprises Private
+Limited
+0.0
+5.2
+(1,396.3)
+(0.0)
+(0.0)
+(0.1)
+9
+Realstone Infra Limited
+0.0
+2.2
+(0.0)
+(0.3)
+(0.0)
+(0.3)
+10 Sun Pharmaceutical Medicare
+Limited
+(0.4)
+(1,881.4)
+(0.1)
+0.4
+1,806.0
+0.8
+(0.1)
+(43.9)
+(0.1)
+(43.9)
+Industries" Limited
+7 Sun Pharma De Venezuela, C.A.
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+8
+(222.7)
+Sun Pharma France (Formerly
+(2,906.5)
+(0.6)
+(235.3)
+(0.4)
+(235.3)
+known as Ranbaxy Pharmacie
+Generiques)
+Annual Report 2020-21
+257
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+(0.6)
+(0.0)
+OOO "Sun Pharmaceutical
+(5.8)
+287.6
+0.5
+287.6
+2
+Sun Farmaceutica Do Brasil
+Ltda.
+(0.5)
+(2,670.2)
+(1.9)
+(698.0)
+(1.2) (698.0)
+3
+Sun Pharma De Mexico S.A.
+0.2
+961.9
+0.3
+130.3
+0.2
+130.3
+DE C.V.
+456
+SPIL De Mexico S.A. DE C.V.
+0.0
+0.2
+Sun Pharmaceutical Peru S.A.C.
+(0.0)
+(173.6)
+(0.0)
+(5.8)
+(0.0)
+(0.1)
+(0.0)
+(0.0)
+(0.0)
+(127.5) (631,051.9)
+58.5
+16,979.5
+735.6 (6,655.4)
+36.7 10,324.1
+Total
+100.0 494,798.3
+100.0 29,038.2
+100.0 (904.8)
+100.0 28,133.4
+# Includes share of loss and share of TCI, from its associate of $144.2 Million
+* Includes share of profit and share of TCI, from a joint venture of 12.2 Million
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the parent company, its subsidiaries, associates and joint
+ventures are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company
+eliminations/consolidation adjustments.
+Intercompany Elimination and
+Consolidation Adjustments
+256
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+(Annexure 'A')
+Disclosure of additional information pertaining to the parent company, subsidiaries, associates and joint venture as per
+Schedule III of Companies Act, 2013:
+Net Assets, i.e., total assets
+Share in profit or (loss)
+minus total liabilities
+S.
+2019-20
+2019-20
+Share in other
+comprehensive income
+(OCI)
+2019-20
+Share in total
+comprehensive income
+(TCI)
+2019-20
+Notes to the Consolidated Financial Statements
+Name of the entity
+6,870.2
+(61.4) 555.5
+112.7
+49 "Ranbaxy Pharmaceuticals
+0.1
+352.7
+0.2
+71.3
+0.3
+71.3
+Ukraine❞ LLC
+50 Sun Pharma (Shanghai) Limited
+0.0
+0.0
+0.0
+24.4
+0.0
+0.0
+51 Sun Pharmaceuticals (EZ)
+0.0
+39.9
+(0.0)
+(11.8)
+(0.0)
+(11.8)
+Limited
+Non controlling interest in all
+subsidiaries
+6.1 30,170.5
+21.7
+6,314.7
+0.0
+No.
+As % of
+consolidated in Million
+net assets
+0.0
+13.0
+0.0
+0.3
+0.0
+0.3
+Private Limited
+4
+Neetnav Real Estate Private
+0.6
+2,922.4
+0.0
+1.1
+Faststone Mercantile Company
+0.0
+Limited
+5
+Realstone Multitrade Private
+0.0
+12.1
+0.0
+0.3
+0.0
+0.3
+Limited
+17
+6
+Skisen Labs Private Limited
+1.1
+3
+16,132.6
+28.8
+As % of
+consolidated
+profit or
+(loss)
+As % of
+As % of
+* in Million
+consolidated in Million consolidated in Million
+OCI
+49.7 243,962.2
+85.3
+32,111.4
+TCI
+(4.4) (808.0)
+55.8 31,303.4
+Parent company - Sun
+Pharmaceutical Industries Limited
+Subsidiaries
+Indian
+1 Green Eco Development Centre
+Limited
+(0.0)
+(0.0)
+(0.0)
+(0.9)
+(0.0)
+(0.9)
+2
+Sun Pharma Laboratories
+Limited
+41.8 205,218.3
+43.1
+16,217.3
+(0.5)
+(84.7)
+(0.2)
+5.0
+0.0
+14 Aditya Acquisition Company
+Ltd.
+ISIN NO
+Issuance Date
+Due Date of
+Payment
+INE044A14542
+11-Feb-20
+INE044A14567
+18-Mar-20
+11-May-20
+17-Jun-20
+Actual Date of
+Repayment
+11-May-20
+17-Jun-20
+Redemption
+Amount (in
+Million)
+5,000.0
+5,000.0
+Details of due dates and actual dates and amounts of repayment of listed unsecured commercial paper:
+INE044A14575
+09-Sep-20
+09-Sep-20
+3,000.0
+INE044A14583
+26-Aug-20
+15-Jun-21
+N/A
+4,000.0
+INE044A14591
+03-Sep-20
+01-Dec-20
+01-Dec-20
+5,000.0
+10-Jun-20
+INE044A14609
+(c)
+(iv) Asset cover = (Total assets - Intangible assets - Current liabilities excluding short-
+term borrowings and Current maturities of long-term borrowings and lease liabilities)
+/ (Long-term borrowings + Short-term borrowings + Current maturities of long-term
+borrowings and lease liabilities).
+The Company has issued listed unsecured commercial paper during the year.
+Annual Report 2020-21
+251
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+(a) Credit Rating and change in credit rating, if any:
+Name of Credit Rating Agency
+CRISIL
+ICRA
+(b) Ratios and Formulae
+Rating
+Note: The above borrowings and interest payments do not include payment related to leases.
+CRISIL A1+
+ICRA A1+
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+0.08
+0.18
+(ii) Debt service coverage ratio = Profit / (loss) after tax but before finance costs,
+depreciation and exceptional items / (Finance costs + Short-term borrowings +
+Current maturities of long-term borrowings and lease liabilities)
+2.70
+1.03
+(iii) Interest service coverage ratio = Profit / (loss) before finance costs, exceptional items
+and tax / Finance costs
+51.24
+18.41
+11.00
+5.53
+(i) Debt equity ratio = (Long-term borrowings + Short-term borrowings + Current
+maturities of long-term borrowings and lease liabilities) / (Total equity)
+01-Dec-20
+29-Dec-20
+29-Dec-20
+Figures for previous year have been regrouped / reclassified wherever considered necessary.
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Date: May 27, 2021
+SUNIL R. AJMERA
+Company Secretary
+* in Million
+As at
+March 31, 2020
+NOTE: 76
+7.5
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+Annual Report 2020-21
+253
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+(Annexure 'A')
+448,919.0
+460,902.3
+7.5
+As at
+March 31, 2021
+2,500.0
+INE044A14617
+29-Jan-21
+28-Jan-22
+N/A
+7,300.0
+INE044A14625
+02-Feb-21
+26-Feb-21
+26-Feb-21
+5,000.0
+INE044A14633
+02-Feb-21
+19-Mar-21
+19-Mar-21
+4,000.0
+INE044A14641
+26-Feb-21
+28-May-21
+N/A
+3,000.0
+252
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+(d) Capital Redemption Reserve and Net worth
+Capital Redemption Reserve
+Net worth
+Financial Statements
+Consolidated Accounts
+Information as required pursuant to Regulation 52(4) of SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015:
+Disclosure of additional information pertaining to the parent company, subsidiaries, associates and joint venture as per
+Schedule III of Companies Act, 2013:
+NOTE: 75
+c)
+249
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Management re-evaluated all indicators to determine the functional currency of TPI. Such indicators include i) cash flow, ii)
+sales price, iii) sales market, iv) expense, v) financing and vi) intercompany transactions and arrangements. Considering all
+relevant facts together, management concluded that USD best reflects the currency of the primary economic environment
+in which TPI currently operates.
+NOTE: 71 DISCLOSURE OF A SUBSIDIARY THAT HAS NON-CONTROLLING INTEREST THAT IS MATERIAL TO
+THE GROUP
+Name of Subsidiary
+Taro Pharmaceutical Industries Ltd.
+and its subsidiaries (TARO Group)
+* Held by non-controlling interest
+Name of Subsidiary
+TARO Group
+Principal place of
+business
+Annual Report 2020-21
+United States of
+America
+Nature*
+Beneficial
+ownership
+Voting power
+Individually immaterial subsidiaries with non-controlling
+interests
+Total
+Profit allocated to non-controlling
+interests
+As at
+March 31, 2021
+As at
+March 31, 2020
+22.22%
+22.90%
+14.82%
+15.27%
+Country of
+incorporation
+Israel
+* in Million
+As part of management's functional currency assessment,
+changes in economic facts and circumstances were
+considered. Over the years the subsidiary has centralised
+different functions, including treasury, which resulted in a
+stronger focus on the USD currency for TPI. Additionally,
+TPI has implemented budgeting in USD, whereas this was
+previously performed in CAD. Further, lately due to a shift
+in focus, TPI's cash inflows consist primarily of USD cash
+balances and less of CAD, as also reflected in the budget.
+NOTE : 70
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+e)
+of USD 25 Million is due on October 01, 2021
+and last installment of USD 25 Million is due on
+October 03, 2022.
+JPY Nil (March 31, 2020 : JPY 5,317.5 Million)
+equivalent to *Nil (March 31, 2020 : 3,699.9
+Million). The loan was taken on August 11, 2015
+in USD. The currency of the loan was changed
+to JPY on August 08, 2019. The loan was due for
+repayment on February 08, 2022. The loan has
+been repaid during the year.
+USD 50 Million (March 31, 2020 : USD 50 Million)
+equivalent to *3,657.3 Million (March 31, 2020 :
+*3,771.5 Million). The loan was taken on August
+29, 2019 and is repayable in 3 equal installments
+of USD 16.67 Million each. The first installment
+of USD 16.67 Million is due on August 30, 2021,
+second installment of USD 16.67 Million is due
+on August 29, 2022 and last installment of USD
+16.67 Million is due on August 29, 2023.
+f)
+JPY 5,000.0 Million (March 31, 2020 : JPY
+5,000.0 Million) equivalent to *3,307.4 Million
+(March 31, 2020: 3,478.9 Million). The loan
+was taken on August 29, 2019 and is repayable
+in 3 equal installments of JPY 1,667 Million each.
+The first installment of JPY 1,667 Million is due
+on August 30, 2021, second installment of JPY
+1,667 Million is due on August 29, 2022 and last
+installment of JPY 1,667 Million is due on August
+29, 2023.
+The Company has not defaulted on repayment of loan
+and interest payment thereon during the year. The
+aforementioned unsecured ECBs are availed from
+various banks at floating rate linked to Libor (ranging
+from 0.66% to 0.96% as at March 31, 2021).
+NOTE: 67 DETAILS OF SECURITIES FOR CURRENT
+BORROWINGS ARE AS UNDER:
+Borrowings taken by overseas subsidiaries are supported by
+the letters of awareness issued by the parent company.
+Prior to April 01, 2019, the functional currency of the Taro
+Pharmaceuticals Inc (TPI) was the Canadian dollar ("CAD").
+Effective April 01, 2019, TPI's functional currency was
+prospectively changed to USD. This change was based on a
+factual assessment of the changes in the primary economic
+and business environment, in which TPI operates, which
+have evolved over time.
+NOTE: 68 LOANS/ADVANCES DUE FROM AN ASSOCIATE
+Medinstill LLC
+Considered good
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+365.7
+365.7
+377.2
+377.2
+Loans have been granted to the above entity for the purpose of its business.
+NOTE: 69
+a)
+b)
+Sun Pharma Global FZE, a subsidiary of the parent
+company holds 23.35% in the capital of Enceladus
+Pharmaceutical B.V. However, as Sun Pharma Global
+FZE does not have any 'Significant Influence' in
+Enceladus Pharmaceutical B.V., as is required under Ind
+AS 28 - "Investments in Associates and Joint Ventures",
+the said investment in Enceladus Pharmaceutical B.V.
+has not been consolidated as an "Associate Entity".
+The parent company holds 24.91% in the capital of
+Shimal Research Laboratories Limited. However, as
+the parent company does not have any 'Significant
+Influence' in Shimal Research Laboratories Limited,
+as is required under Ind AS 28 - "Investments in
+Associates and Joint Ventures", the said investment
+in Shimal Research Laboratories Limited has not been
+consolidated as an "Associate Entity".
+Interest bearing with specified repayment schedule:
+Accumulated non-controlling interests
+Year ended
+March 31, 2021
+(6,542.8)
+228.1
+31,205.9
+29,137.2
+(28,626.6)
+16,638.9
+(31,343.7)
+16,029.9
+* in Million
+Consolidated cash flows information of TARO Group
+Net cash generated from operating activities
+Net cash generated from/ (used in) investing activities
+Net cash used in financing activities
+Year ended
+March 31, 2021
+Year ended
+March 31, 2020
+3,822.8
+4,973.3
+(1,781.5)
+22,081.4
+(21,131.2)
+49,279.0
+(1,843.7)
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+Dividend paid by Taro during the year USD Nil (March 31, 2020 : USD Nil). For repurchase of ordinary shares done by Taro
+refer note 56.
+NOTE: 72
+The Board of Directors of the parent company at its meeting held on July 31, 2020, approved the Scheme of Amalgamation
+and Merger of Sun Pharma Global FZE (wholly owned subsidiary of the parent company) with Sun Pharmaceutical
+Industries Limited, and their respective members and creditors which inter-alia, envisages merger of Sun Pharma Global
+FZE into the parent company with an appointed date of January 01, 2020. The approval of the only secured creditor,
+shareholders and unsecured creditors of the Company were received in the year ended March 31, 2021 at their respective
+meetings. The parent company has filed the requisite petition with the National Company Law Tribunal seeking its
+approval. The Scheme shall be effective post completion of all necessary formalities and procedures and accordingly, the
+consolidated financial statements do not reflect the impact on account of the Scheme.
+NOTE: 73
+Government of India vide press release dated December 31, 2020 introduced the benefit of the Scheme for Remission of
+Duties and Taxes on Exported Products (RoDTEP) to all export goods with effect from January 01, 2021. Considering that
+the rates of RoDTEP are yet to be notified, the Company has not accrued income relating to benefits of RODTEP scheme
+for the period January 01, 2021 to March 31, 2021.
+NOTE: 74 USE OF ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
+The preparation of the Group's financial statements requires the management to make judgements, estimates and
+assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
+disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and
+underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
+in which the estimates are revised and in any future periods affected. In particular, information about significant areas of
+estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the
+amounts recognised in the consolidated financial statements is included in the following notes:
+a) Litigations (Refer note 2 (n) and note 39)
+b)
+Revenue (Refer note 2 (o))
+250
+43,474.1
+Year ended
+March 31, 2020
+* in Million
+Year ended
+March 31, 2020
+3,856.2
+Year ended
+March 31, 2021
+Year ended
+March 31, 2020
+214.1
+28,014.9
+2,155.6
+36,474.5
+2,127.9
+(6,314.7)
+4,070.3
+30,170.5
+38,602.4
+The summarised consolidated financial information of TARO Group before inter-company eliminations:
+Consolidated balance sheet of TARO Group
+Non-current assets
+Current assets
+Non-current liabilities
+Current liabilities
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2020
+70,100.7
+105,791.2
+(342.2)
+(49,470.3)
+62,130.2
+114,436.4
+(488.6)
+(16,800.6)
+Consolidated statement of profit and loss of TARO Group
+Total income
+Total expenses excluding exceptional item
+Profit after tax
+Total comprehensive income for the year
+Year ended
+March 31, 2021
+Impairment of goodwill and intangible assets (Refer note 2 (g), (h) and 47)
+(Annexure 'A')
+Net Assets, i.e., total assets
+minus total liabilities
+(0.0)
+(168.3)
+(0.1)
+(16.0)
+(0.1)
+(16.0)
+6
+OOO "Sun Pharmaceutical
+(0.0)
+(220.8)
+0.0
+3.5
+0.0
+Sun Pharmaceutical Peru S.A.C.
+3.5
+7
+Sun Pharma De Venezuela, C.A.
+0.0
+0.0
+254
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+(Annexure 'A')
+Disclosure of additional information pertaining to the parent company, subsidiaries, associates and joint venture as per
+Schedule III of Companies Act, 2013:
+Net Assets, i.e., total assets
+Share in profit or (loss)
+Industries" Limited
+S.
+5
+0.0
+(0.1)
+(0.0)
+(0.1)
+Foreign
+1
+Sun Pharmaceutical
+0.4 2,075.1
+1.1
+325.7
+1.2 325.7
+(Bangladesh) Limited
+2
+Sun Farmaceutica Do Brasil
+Ltda.
+0.2
+(0.5) (2,530.2)
+(206.7)
+(0.7)
+(206.7)
+3
+Sun Pharma De Mexico S.A.
+DE C.V.
+0.2
+846.5
+0.9
+247.1
+0.9
+247.1
+4
+SPIL De Mexico S.A. DE C.V.
+(0.7)
+Name of the entity
+No.
+minus total liabilities
+450.2
+10 Ranbaxy Nigeria Limited
+(0.1)
+(573.6)
+(0.8)
+(222.2)
+(0.8)
+(222.2)
+11 Sun Pharma (Netherlands) B.V
+12 Alkaloida Chemical Company
+Zrt.
+13.4
+66,243.3
+1.4
+416.7
+1.6
+(247.9) 2,243.1
+2,659.8
+10.3 50,930.2
+0.8
+235.0
+0.8
+235.0
+13 Sun Pharmaceutical Industries
+(Australia) Pty Limited
+0.1
+498.1
+(1.5)
+(446.9)
+(1.6)
+(446.9)
+9.5
+450.2
+1.6
+1,430.3
+As % of
+2020-21
+2020-21
+Share in other
+comprehensive income
+(OCI)
+2020-21
+Share in total
+comprehensive income
+(TCI)
+2020-21
+consolidated in Million
+As % of
+consolidated
+profit or
+As % of
+As % of
+* in Million
+consolidated in Million
+consolidated in Million
+net assets
+OCI
+(loss)
+8
+Sun Pharma France (Formerly
+known as Ranbaxy Pharmacie
+(0.6)
+(2,987.7)
+0.0
+5.5
+TCI
+0.0
+5.5
+Generiques)
+9
+Ranbaxy (Malaysia) SDN. BHD.
+0.3
+(0.0)
+Share in profit or (loss)
+(0.2)
+13 Caraco Pharmaceuticals Private
+Limited
+(1.7)
+2
+Sun Pharma Laboratories
+45.2 223,846.3
+64.1
+18,615.3
+(1.4)
+12.7
+66.2 18,628.0
+Limited
+3
+Faststone Mercantile Company
+0.0
+(0.0)
+3.2
+0.2
+0.0
+0.2
+Private Limited
+4
+Neetnav Real Estate Private
+0.6
+2,923.5
+0.0
+1.1
+0.0
+1.1
+Limited
+0.0
+5
+(1.7)
+(1.7)
+S.
+2020-21
+2020-21
+Share in other
+comprehensive income
+(OCI)
+2020-21
+Share in total
+comprehensive income
+(TCI)
+2020-21
+Name of the entity
+No.
+As % of
+consolidated in Million
+net assets
+As % of
+consolidated
+profit or
+(loss)
+As % of
+As % of
+(0.0)
+* in Million
+OCI
+consolidated in Million
+TCI
+50.6 250,401.6
+73.7 21,397.0
+(70.0)
+633.0
+78.3 22,030.0
+Parent company - Sun
+Pharmaceutical Industries Limited
+Subsidiaries
+Indian
+1 Green Eco Development Centre
+Limited
+(0.0)
+consolidated in Million
+Realstone Multitrade Private
+0.0
+2.3
+(37.0)
+(0.1)
+(39.2)
+(0.1) (39.2)
+10 Sun Pharmaceutical Medicare
+Limited
+(0.6)
+(2,748.8)
+(3.0)
+(872.0)
+(0.5)
+4.7
+(3.1) (867.3)
+11
+(0.0)
+Zenotech Laboratories Limited
+(0.6)
+(180.9)
+(0.0)
+0.1
+(0.6)
+(180.8)
+12 Sun Pharma Distributors
+Limited
+0.4 2,000.1
+4.6
+1,325.1
+(0.0)
+0.2
+4.7 1,325.3
+0.2 1,097.4
+Realstone Infra Limited
+9
+(0.1)
+0.0
+0.2
+0.0
+0.2
+Limited
+17
+6 Skisen Labs Private Limited
+(0.0)
+(0.3)
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+Softdeal Pharmaceuticals
+0.0
+11.0
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+Private Limited (Formerly
+known as Softdeal Trading
+Company Private Limited)
+8
+Universal Enterprises Private
+Limited
+0.0
+5.2
+(0.0)
+(0.1)
+(0.0)
+(0.0)
+Disclosure of additional information pertaining to the parent company, subsidiaries, associates and joint venture as per
+Schedule III of Companies Act, 2013:
+(0.0)
+Share in profit or (loss)
+(545.2)
+0.0
+18.4
+0.0
+18.4
+21 Sun Pharmaceuticals Korea Ltd.
+(0.1)
+0.0
+(0.0)
+(0.4)
+(0.0)
+(0.4)
+22 Sun Global Development FZE
+0.0
+3.9
+20 Sun Pharma Philippines, Inc.
+1.2
+0.0
+(20.3)
+(0.0)
+(20.3)
+18 Sun Pharma Global FZE
+13.4
+66,062.3
+(88.3) (33,239.4)*
+(12.8) (2,368.2)
+(63.5) (35,607.6)*
+(Consolidated with a Joint
+venture)
+19 Sun Pharmaceuticals SA (Pty)
+Ltd.
+0.0
+1.0
+0.0
+1.2
+16.2
+(0.1)
+Net Assets, i.e., total assets
+16.2
+(0.9)
+(518.8)
+32.4 159,277.4
+44.2
+16,638.9
+(3.3) (609.0)
+(518.8)
+28.6 16,029.9
+9.3
+(0.0)
+(1.7)
+(0.0)
+(1.7)
+(0.1)
+0.0
+48.2 236,744.7
+(1.4)
+(712.3)
+(0.1)
+0.6
+2,730.6
+0.7
+261.8
+0.5
+261.8
+23 Sun Pharma Japan Ltd.
+(Consolidated with its
+Subsidiary)
+24 Sun Pharma HealthCare FZE
+25 Sun Laboratories FZE
+26 Taro Pharmaceutical Industries
+Ltd. (TARO) (Consolidated with
+its Subsidiaries)
+27 Sun Pharma Switzerland Ltd.
+28 Sun Pharma Holdings
+0.0
+2.2
+0.0
+2.2
+0.0
+(50.1)
+d)
+17 Sun Pharmaceuticals France
+TCI
+consolidated in Million consolidated in Million
+OCI
+net assets
+* in Million
+As % of
+As % of
+(loss)
+As % of
+consolidated
+profit or
+Share in total
+comprehensive income
+(TCI)
+2019-20
+Share in other
+comprehensive income
+(OCI)
+2019-20
+2019-20
+2019-20
+As % of
+minus total liabilities
+consolidated in Million
+9
+Ranbaxy (Malaysia) SDN. BHD.
+10 Ranbaxy Nigeria Limited
+0.2
+972.5
+(0.1) (385.5)
+13.4 65,582.0
+(0.0)
+3,914.1
+7.0
+765.2
+4.3
+3,148.9
+8.4
+(504.4)
+(0.9)
+(504.4)
+(1.3)
+545.1
+1.0
+545.1
+1.4
+No.
+Name of the entity
+11 Sun Pharma (Netherlands) B.V
+12 Alkaloida Chemical Company
+Zrt.
+(5.5)
+15 Sun Pharmaceutical Industries
+(Europe) B.V.
+0.0
+38.7
+0.1
+0.1
+(0.0)
+28.6
+(137.1)
+0.1
+51.0
+S.
+51.0
+0.1
+16 Sun Pharmaceuticals Germany
+GmbH
+(5.5)
+28.6
+13 Sun Pharmaceutical Industries
+(Australia) Pty Limited
+344.1
+0.6
+344.1
+52,284.9
+0.1
+(0.0)
+10.6
+715.2
+(396.0)
+(0.7)
+(396.0)
+14 Aditya Acquisition Company
+Ltd.
+0.0
+10.7
+(1.1)
+0.9
+5.
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+2.
+RESOLVED FURTHER THAT the Board of Directors
+of the Company or any Committee thereof, be and
+is hereby authorised to do all such acts, deeds and
+6.
+"RESOLVED THAT pursuant to the provisions of
+Section 148 and other applicable provisions, if any, of
+the Companies Act, 2013 read with the Companies
+(Audit and Auditors) Rules, 2014 (including any
+statutory modification(s) or reenactment(s) thereof,
+for the time being in force), the remuneration as set
+out in the Explanatory Statement annexed to this
+Notice, payable to M/s. B M Sharma & Associates,
+Cost Accountants, Firm's Registration No. 100537,
+appointed as the Cost Auditors of the Company to
+conduct the audit of cost records maintained by the
+Company for the financial year 2021-22, be and is
+hereby ratified.
+SPECIAL BUSINESS:
+a.
+To appoint Mr. Dilip Shanghvi (DIN: 00005588), who
+retires by rotation and being eligible, has offered
+himself for re-appointment as a Director.
+To confirm payment of Interim Dividend* of 5.50/-
+(Rupees Five and Paise Fifty Only) per Equity Share
+of 1/- each and to declare Final Dividend** of *2/-
+(Rupees Two Only) per Equity Share for the financial
+year 2020-21.
+To receive, consider and adopt the audited
+consolidated financial statements of the Company
+for the financial year ended March 31, 2021 and
+the report of the Auditors thereon.
+To receive, consider and adopt the audited
+standalone financial statements of the Company
+for the financial year ended March 31, 2021
+and the reports of the Board of Directors and
+Auditors thereon.
+b.
+4.
+3.
+things, to execute all such documents, instruments
+and writings as may be required to give effect to this
+resolution."
+To appoint Mr. Kalyanasundaram Subramanian (DIN:
+00179072) who retires by rotation and being eligible,
+has offered himself for re-appointment as a Director.
+To consider and, if thought fit, to pass the following
+resolution as a Special Resolution:
+Perquisites: He will be entitled to furnished/
+non-furnished accommodation or house
+rent allowance, gas, electricity, medical
+reimbursement, leave travel concession for
+self and family, club fees, personal accident
+insurance, company maintained car, telephone
+and such other perquisites in accordance with
+the Company's rule, the monetary value of such
+perquisites to be determined in accordance with
+the Income-Tax Rules, 1962 being restricted to as
+aforesaid.
+(1) Mr. Kal shall hold office as the Whole-time
+Director of the Company for a further
+period of two (2) years from with effect from
+February 14, 2021 upto February 13, 2023 on
+the terms and conditions hereinafter mentioned.
+1.
+(i)
+(5) Other Terms and Conditions
+Minimum Remuneration: In the event of loss
+or inadequacy of profits in any financial year,
+Mr. Kal shall be entitled to receive a total
+remuneration including perquisites, etc. not
+exceeding the ceiling limits as approved by the
+Board of Directors and the Members, as minimum
+remuneration.
+Company's contribution to provident fund and
+superannuation fund or annuity fund and gratuity
+payment as per Company's rules and encashment
+of leave at the end of his tenure, though payable,
+shall not be included in the computation of ceiling
+on remuneration and perquisites as aforesaid.
+Salary (including Bonus, Perquisites and
+Variable pay subject to individual and company
+performance as per plan) up to €9,00,00,000
+(Rupees Nine Crores) per annum
+Mr. Kalyanasundaram Subramanian, shall be
+determined by the Board of Directors, from time
+to time within, however, the maximum limits
+set forth below, for a period of two years from
+February 14, 2021 upto February 13, 2023:
+The remuneration payable to
+"RESOLVED THAT pursuant to the provisions of
+Sections 196, 197, 198 and other applicable provisions,
+if any, of the Companies Act, 2013 ('the Act') read
+with Schedule V to the Act and the Companies
+(Appointment and Remuneration of Managerial
+Personnel) Rules, 2014 (including any statutory
+modification(s) or re-enactment(s) thereof for the time
+being in force), and applicable provisions of the SEBI
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015, relevant provisions of the Articles
+of Association of the Company, and subject to such
+other permissions, sanction(s) as may be necessary
+under law, pursuant to the recommendation of
+the Nomination and Remuneration Committee
+and the Board of Directors of the Company,
+Mr. Kalyanasundaram Subramanian (“Mr. Kal”)
+(DIN: 00179072) be and is hereby re-appointed as
+the Whole-time Director of the Company for a
+further period of 2 (Two) years effective from
+February 14, 2021 upto February 13, 2023, at such
+remuneration and terms and conditions mentioned
+as per draft agreement proposed to be entered into
+between Mr. Kal and the Company, and his existing
+appointment letter which inter-alia forms part
+of the said agreement (hereinafter referred to as
+"Agreement"), which is hereby specifically sanctioned
+with the liberty to the Board of Directors to alter,
+vary and modify the terms and conditions of the
+remuneration, in such manner as may be agreed to
+between the Board of Directors and Mr. Kal within
+and in accordance with the Act or any amendment
+thereto and agreed to between the Board of Directors
+and as may be acceptable to Mr. Kal:
+c)
+a)
+(4) REMUNERATION
+of Companies Act, 2013, the Whole-time Director
+will carry out such duties and exercise such
+powers as may be entrusted to him by the Board
+of Directors and the Managing Director. He will
+report to Mr. Dilip Shanghvi, Managing Director
+of the Company. He is further authorised to do
+all such acts, deeds, things and matters as may
+be required to do, as the Whole-time Director.
+Mr. Kal shall perform such duties and exercise
+such powers as are additionally entrusted to him
+by the Board.
+Sun Pharmaceutical Industries Limited
+CARE
+267
+Annual Report 2020-21
+(3) Subject to the supervision and control of the
+Board of Directors and subject to the provisions
+(2) Mr. Kal shall act as the Whole-time Director of
+the Company and may devote such time in the
+performance of his duties as Whole-time Director
+of the Company as he considers necessary and
+expedient.
+b)
+ORDINARY BUSINESS:
+(989.0)
+Notice of Annual General Meeting
+(0.0)
+12.2
+i. Considered in
+Profit/(loss) for the year
+6
+Balance Sheet
+Shareholding as per latest
+ΝΑ
+52.4
+The re-appointment of Mr. Kal as the Whole time
+Director of the Company would be subject to the
+provisions of Section 152 (6) of the Companies
+Act, 2013, i.e. Mr. Kal would be liable to retire by
+rotation.
+415.2
+0.0
+70.7
+Networth attributable to
+55
+venture is not consolidated
+NA
+39.1
+(144.1)
+(30.5)
+(0.0)
+Notice
+Consolidated Accounts | Notice of Annual General Meeting
+C. S. MURALIDHARAN
+Chief Financial Officer
+Date: May 27, 2021
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+SUNIL R. AJMERA
+Company Secretary
+(DIN: 00005588)
+Managing Director
+DILIP S. SHANGHVI
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+NOTICE is hereby given that the Twenty-Ninth Annual
+General Meeting of the members of Sun Pharmaceutical
+Industries Limited will be held on Tuesday, August 31, 2021
+at 3.00 p.m. IST (Indian Standard Time) through Video
+Conferencing ("VC") / Other Audio-Visual Means ("OAVM")
+to transact the following business:
+266
+(0.0)
+(132.5)
+(576.8)
+57.2
+(0.0)
+14.9
+ii. Not Considered in
+Consolidation
+Consolidation
+7.
+133.2
+(iii) The re-appointment as Whole-time Director will
+be terminable by either party giving to the other
+3 months' notice in writing as per the terms of
+Agreement between the Company and Mr. Kal
+or upon Mr. Kal ceasing to be a Director of the
+Company.
+Key management personnel
+Payables
+Others
+Joint venture (March 31, 2020 : 48,558)
+Key management personnel
+Security deposit given
+Others
+Loan given
+Others
+Associate
+Others
+Advance (Includes capital and supply of goods/services)
+Associates
+(Annexure 'B')
+As at
+* In Million
+As at
+March 31, 2021
+March 31, 2020
+Lease liability
+430.4
+Receivables
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+Relatives of Key management personnel
+35.0
+29.1
+Donation
+236.5
+61.4
+Others
+200.0
+Balance outstanding as at end of the year
+7.1
+36.5
+54.3
+Annual Report 2020-21
+261
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Unconsolidated subsidiary
+(ii) The re-appointment will be for a period of 2 years
+from February 14, 2021 upto February 13, 2023.
+589.8
+589.8
+1,202.9
+1,233.8
+Key Management Personnel (KMP) and Relatives of KMP who are under the employment of the Company are entitled to
+post employment benefits and other long term employee benefits recognised as per Ind AS 19 - 'Employee Benefits'. As
+these employee benefits are lump sum amount provided on the basis of actuarial valuation, the same is not included above
+and there is no Share-based payments to key management personnel and relatives of KMP.
+The sales to and purchases from related parties are made on an arm's length basis. Outstanding trade balances at the
+year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related
+party receivables or payables.
+262
+FORM AOC - 1
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint venture
+Annual Report 2020-21
+1,233.8
+PART "A": Subsidiaries
+Financial Statements
+Consolidated Accounts
+Investment
+268
+"RESOLVED THAT further to the resolutions passed
+at the 26th Annual General Meeting of the Company
+held on September 26, 2018 for remuneration
+payable to Mr. Sailesh T. Desai, Whole-time Director
+(DIN:00005443), and in partial modification to the
+agreement dated January 29, 2019 entered into
+between Mr. Sailesh T. Desai and the Company for
+his re-appointment as the Whole-time Director
+("the Agreement") and pursuant to the provisions of
+Sections 197, 198 and other applicable provisions,
+if any, of the Companies Act, 2013 ('the Act') read
+with Schedule V to the Act (including any statutory
+modification(s) or re-enactment(s) thereof for the
+time being in force), and subject to such other
+permissions, sanction(s) as may be necessary under
+law, and pursuant to the recommendation of the
+Nomination and Remuneration Committee and the
+Board of Directors of the Company, the consent
+of the Members of the Company, be and is hereby
+accorded for maximum limit of remuneration to be
+paid to Mr. Sailesh T. Desai, Whole-time Director of
+the Company for a period of 2 (Two) years with effect
+from April 1, 2022 to March 31, 2024, that is, upto
+the expiry of his present term of office, including
+the remuneration to be paid to him as minimum
+remuneration in the event of loss or inadequacy of
+profits in any financial year during the aforesaid period,
+To consider and, if thought fit, to pass the following
+resolution as a Special Resolution:
+RESOLVED FURTHER THAT the Board of Directors of
+the Company be and is hereby authorised to take such
+steps as they may deem fit, expedient or desirable to
+give effect to this Resolution."
+RESOLVED FURTHER THAT in the event of any
+statutory amendments, modifications or relaxation by
+the Central Government to Chapter XIII (Appointment
+and Remuneration of Managerial Personnel) and/or
+Schedule V to the Companies Act, 2013, the Board
+of Directors be and is hereby authorised to vary or
+increase the remuneration (including the minimum
+remuneration), i.e. the salary, perquisites, allowances,
+etc. within such prescribed limit or ceiling and the
+aforesaid Agreement between the Company and
+Mr. Kal be suitably amended to give effect to such
+modification, relaxation or variation, subject to such
+approvals as may be required under law.
+in Million
+413.0
+1,202.9
+88.4
+17.4
+538.7
+447.9
+475.2
+314.6
+0.1
+63.5
+NA
+73.4
+0.5
+0.5
+0.5
+365.7
+377.2
+365.7
+377.2
+88.4
+73.4
+0.5
+NA
+2
+ΝΑ
+100.00%
+(354.0)
+(100.9)
+(454.9)
+3,378.1
+100.00%
+(872.0)
+(1.6)
+(873.6)
+1,387.4
+57.56%
+(12.2)
+(12.2)
+193.7
+610.3 (126.3) 858.4 374.4
+(2,751.2) 4,611.3 7,360.0
+1,767.9 3,073.0 1,232.4
+1,998.6 20,474.9 18,474.8
+(39.6) 3,577.4 3,614.5
+(11.8) 216.2 176.2
+(0.0)
+0.0
+11.17
+21.12.2020 RMB
+400.0 104,039.3
+1,767.5
+442.4
+1,325.1
+In respect of entities at Sr. Nos. 5 to 8, 42, 60 and 68 the reporting date is as of December 31, 2020 and different from the reporting date of the parent company.
+Entities at Sr. No. 76 and 77 have been incorporated during the year ended March 31, 2021.
+5
+4
+3
+2
+0.0' represents amount less than 0.05 Million and rounded off
+1
+Note:
+Sun Pharma (Shanghai) Co.,Ltd
+100.00%
+99.99%
+(11.8)
+(11.8)
+(0.0)
+0.0
+100.00%
+(39.2)
+(39.2)
+100.00%
+(0.0)
+Foundation for Disease Elimination and Control of India (FDEC), a wholly owned subsidiary incorporated in India on September 21, 2016 by the parent company as part of its Corporate Social Responsibility (CSR) initiative, has entered
+into an MOU with Indian Council of Medical Research (ICMR) and Madhya Pradesh State Government to undertake the Mandla Malaria Elimination Demonstration Project with a goal to eliminate Malaria in the state. FDEC is a Section 8
+company not considered for consolidation since it can apply its income for charitable purposes only and can raise funds/contribution independently.
+77
+0.86
+72
+1.00
+27.07.2017 INR
+Zenotech Laboratories Limited
+71
+Control of India
+100.00%
+(1.6)
+(1.6)
+36.5
+2.3
+3.6
+1.2
+0.1
+1.00
+21.09.2016 INR
+Foundation for Disease Elimination and
+Sun Pharmaceutical Medicare Limited
+16.01.2017 INR
+1.00
+2.5
+25.10.2020 BDT
+Sun Pharmaceuticals (EZ) Limited
+76
+2.5
+1.00
+31.01.2020 INR
+Realstone Infra Limited
+75
+51.8
+1.5
+19.03.2019 INR
+Sun Pharma Distributors Limited
+74
+72.7
+0.66
+01.01.2019 JPY
+Kayaku Co., Ltd.
+73
+1.00
+Books of accounts and other related records/documents of the overseas subsidiaries of the Zenotech Laboratories Limited were missing and due to non-availability of those records/information, Zenotech Laboratories Limited is unable to
+prepare consolidated accounts.
+3 Skyline LLC and One Commerce drive LLC are being consolidated with Taro Pharmaceuticals U.S.A., Inc.
+The above does not include Taro Pharmaceutical Laboratories Inc. and 2 Independence Way LLC as they have no operation and does not have any Assets, Liabilities or Equity as on the close of their financial year.
+746.1
+0.0
+278.3
+Amount of Investment in
+ΝΑ
+ΝΑ
+No.
+on the year end
+Ventures held by the company
+Shares of Associate/Joint
+424.2
+30-Jun-20
+10.03.2021
+10.09.2018
+Ltd.)
+31-Dec-20
+31-Dec-20
+13.03.2014
+31-Mar-21
+31.03.2017
+31-Mar-21
+09.10.2015
+1,999
+1,127.3
+345,622
+340.8
+428,571
+113.1
+Associates/Joint Venture
+NA
+4 Reason why the associate/joint
+significant influence
+NA
+NA
+NA
+NA
+NA
+13.02.2014
+NA
+3
+12.50%
+18.71%
+19.99%
+40.61%
+28.76%
+45.00%
+Extend of Holding %
+Description of how there is
+Date of acquisition
+31-Dec-20
+Latest Balance Sheet Date
+16
+With effect from April 01, 2020 Office Pharmaceutique Industriel Et Hospitalier has been merged with Sun Pharma France (Formerly Known as Ranbaxy Pharmacie Generiques).
+With effect from March 17, 2021 Sun Pharmaceuticals France has been dissolved.
+With effect from April 01, 2020 Insite Vision Incorporated, Mutual Pharmaceutical Company Inc and Pharmalucence, Inc. has been merged with Sun Pharmaceutical Industries, Inc.
+With effect from January 05, 2021 Sun Pharmaceuticals Korea Ltd has been dissolved.
+With effect from March 16, 2020 Dungan Mutual Associates, LLC and URL PharmPro, LLC has been merged with Mutual Pharmaceutical Company Inc.
+15
+14
+13
+Ranbaxy Ireland Limited is under liquidation.
+12
+Sonke Pharmaceuticals Proprietary Limited have been consolidated with Ranbaxy South Africa (Pty) Ltd.
+10
+With effect from March 27, 2020 Morley & Company, Inc has been merged with The Taro Development Corporation.
+9
+With effect from January 01, 2020 Pola Pharma Inc. has been merged with Sun Pharma Japan Ltd.
+8
+7
+6
+11
+NA
+Consolidated Accounts
+Sun Pharmaceutical Industries Limited
+1
+WRS
+Bioproducts
+Pty Ltd
+Tarsier Pharma
+Ltd (Formerly
+known as
+Tarsius Pharma
+Medinstill LLC
+Trumpcard
+Advisors and
+Finvest LLP
+Generic Solar
+Power LLP
+Artes
+Biotechnology
+GmbH
+No
+Financial Statements
+Name of Associates/Joint Ventures
+* in Million
+Associate
+Joint Venture
+Part "B": Associate Companies and Joint venture
+Statement containing salient features of the financial statement of subsidiaries / associate companies/ joint venture
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies
+(Accounts) Rules, 2014
+FORM AOC - 1
+CARE
+Sr.
+255.6
+Others
+453.3
+46 Sun Pharma Laboratorios,S.L.U.
+0.1
+504.6
+0.2
+57.1
+0.1
+57.1
+(Formerly known as
+Laboratorios Ranbaxy, S.L.U.)
+47 Ranbaxy (U.K.) Limited
+0.3
+1,531.4
+0.2
+69.1
+0.1
+69.1
+48 Ranbaxy Holdings (U.K.)
+Limited
+177.9
+0.3
+177.9
+0.5
+0.1
+514.4
+(0.6)
+(221.8)
+(0.4)
+(221.8)
+44 Ranbaxy South Africa (Pty)
+0.2
+0.6
+761.9
+4.4
+0.0
+4.4
+Ltd. (Consolidated with its
+Subsidiary)
+45 Ranbaxy Pharmaceuticals (Pty)
+Ltd.
+0.3
+1,656.2
+0.0
+2,868.0
+(0.0)
+(0.6)
+60.8
+0.1
+60.8
+52 "Ranbaxy Pharmaceuticals
+0.1
+293.4
+0.1
+29.5
+0.2
+0.1
+Ukraine" LLC
+53 Pola Pharma Inc. (Consolidated
+with its Subsidiary)
+2.0
+737.5
+1.3
+737.5
+Non controlling interest in all
+subsidiaries
+7.9 38,602.4
+29.5
+43 JSC Biosintez
+14.3
+(18.4)
+(0.0)
+(0.6)
+49 Sun Pharmaceutical Holding
+14.6
+71,713.8
+20.8
+7,815.3 #
+2.8
+0.0
+522.1
+8,337.4#
+USA Inc (Consolidated with its
+Subsidiaries and its Associate)
+50 Ranbaxy (Thailand) Co., Ltd.
+51 Sun Pharmaceuticals Morocco
+LLC
+0.0
+213.3
+(0.0)
+(18.4)
+(0.0)
+14.9
+Intercompany Elimination and
+Consolidation Adjustments
+38.9
+38.9
+* in Million
+consolidated in Million consolidated in Million
+OCI
+TCI
+(loss)
+35 Office Pharmaceutique
+Industriel Et Hospitalier
+36 Basics GmbH
+0.0
+103.9
+0.0
+1.0
+0.0
+1.0
+0.2
+1,173.2
+0.1
+55.3
+As % of
+As % of
+As % of
+consolidated
+profit or
+consolidated in Million
+net assets
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+Financial Statements
+Consolidated Accounts
+(Annexure 'A')
+Disclosure of additional information pertaining to the parent company, subsidiaries, associates and joint venture as per
+Schedule III of Companies Act, 2013:
+Net Assets, i.e., total assets
+Share in profit or (loss)
+0.1
+minus total liabilities
+2019-20
+2019-20
+Share in other
+comprehensive income
+(OCI)
+2019-20
+Share in total
+comprehensive income
+(TCI)
+2019-20
+Name of the entity
+No.
+As % of
+S.
+55.3
+37 Ranbaxy Ireland Limited
+0.1
+221.5
+0.0
+17.1
+0.0
+17.1
+41 Terapia SA
+1.2
+5,727.0
+0.0
+6.7
+0.0
+1.3
+4.5
+2,524.5
+42 AO Ranbaxy
+0.2
+1,117.3
+0.1
+2,523.2
+0.1
+40 Ranbaxy (Poland) SP. Z O.O.
+12.7
+577.1
+(0.0)
+(3.8)
+(0.0)
+(3.8)
+38 Ranbaxy Italia S.P.A.
+0.0
+29.3
+S.A.C.
+0.0
+0.0
+16.4
+39 Sun Pharmaceutical Industries
+(0.0)
+(167.0)
+0.0
+12.7
+0.0
+16.4
+(135.7) (666,597.1)
+(6.7)
+(10.8) (4,070.3)
+(2,588.5)
+1,439.0
+1,433.8
+Others
+Joint venture
+Reimbursement of expenses (Paid)
+Others
+Joint venture
+Associates
+Rendering of service
+Others
+1,431.0
+1,388.3
+8.0
+45.5
+84.0
+505.8
+74.1
+Receiving of service
+22.7
+Others
+22.7
+34.0
+1,572.0
+34.0
+629.6
+Others
+629.6
+Revenue from contracts with customers, net of returns
+197.9
+478.8
+101.1
+197.9
+101.1
+Sale of property, plant and equipment and other intangible assets
+Others
+13.2
+5.3
+13.2
+5.3
+Other operating revenue/Other Income
+Others
+1.1
+8.8
+27.0
+Lease Rental and hire charges (Income)
+22.7
+22.8
+Others
+22.7
+22.8
+Rent expense / payment towards lease liabilities
+8.9
+69.2
+7.8
+8.9
+7.8
+Investment in Associate
+242.3
+Associate
+242.3
+Remuneration/ compensation
+290.6
+Others
+1,572.0
+Others
+Interest income
+276.0
+217.1
+276.0
+217.1
+Reimbursement of expenses (Received)
+158.0
+320.5
+70
+69.2
+140.6
+Key management personnel
+17.4
+Unconsolidated subsidiary (March 31, 2021: 4,793)
+0.0
+Loan given
+63.8
+Associate
+63.8
+320.5
+202.0
+383.7
+202.0
+Dilip Shantilal Shanghvi
+Israel Makov
+Kalyanasundaram lyer Natesan Subramanian
+Sailesh Trambaklal Desai
+Sudhir Vrundavandas Valia
+Managing Director (DIN: 00005588)
+Chairman and Non-Executive Director (Non- Independent)
+(DIN: 05299764)
+Wholetime Director (DIN: 00179072)
+a Key Management Personnel (KMP)
+Wholetime Director (DIN: 00005443)
+(DIN: 00005561)
+b
+Relatives of Key Management Personnel
+Aalok Shanghvi
+C
+Vidhi Shanghvi
+Others (Entities in which the KMP and relatives of KMP
+have control or significant influence)
+Non-Executive Director (Designation changed from Whole-time
+Director to Non-Executive Director on May 29, 2019) and
+Non-Independent Director
+Aditya Medisales Limited
+Names of related parties where there are transactions and description of relationships
+(Annexure 'B')
+(15.1) (2,789.2)
+(12.2) (6,859.5)
+129.2 23,790.5
+37.8 21,202.0
+Total
+100.0 491,246.9
+100.0 37,649.3
+100.0 18,419.1
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+100.0 56,068.4
+* Includes share of loss and share of TCI, from a joint venture of 10.0 Million.
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the parent company, its subsidiaries, associates and joint
+ventures are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company
+eliminations / consolidation adjustments.
+Annual Report 2020-21
+259
+Sun Pharmaceutical Industries Limited
+CARE
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+# Includes share of loss and share of TCI, from its associate of $247.8 Million.
+Key management personnel
+Alfa Infraprop Private Limited
+Makov Associates Limited
+Foundation for Disease Elimination and Control of India
+260
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2021
+IND AS-24 - " RELATED PARTY DISCLOSURES"
+Details of related party transaction:
+Financial Statements
+Consolidated Accounts
+(Annexure 'B')
+Unconsolidated Subsidiary
+* In Million
+Year ended
+March 31, 2020
+Purchase of goods
+Others
+Purchase of property, plant and equipment and other intangible assets
+Others
+Acquired on slump sale basis
+383.7
+Year ended
+March 31, 2021
+Fortune Integrated Assets Finance Limited
+Dr. Py Institute LLC
+Tarsier Pharma Ltd (Formerly known as Tarsius Pharma Ltd.)
+PV Power Technologies Private Limited
+Ramdev Chemicals Private Limited (upto April 25, 2019)
+Shanghvi Finance Private Limited
+Shantilal Shanghvi Foundation
+Sidmak Laboratories (India) Private Limited
+Sun Petrochemicals Private Limited
+Sun Pharma Advanced Research Company Limited
+Suraksha Asset Reconstruction Private Limited
+Intact Solution LLC
+United Medisales Private Limited
+d
+Joint Venture
+e
+f
+Artes Biotechnology GmbH
+Associates
+Medinstill LLC
+Medinstill Development LLC
+Kism Textiles Private Limited
+100.00%
+15,853
+596.8
+73.15
+27
+Taro Pharmaceuticals North America, Inc.
+20.09.2010 USD
+73.15
+-
+(511.2)
+892.9
+0.1
+(0.3)
+0.2
+400.5 223,445.8 241,846.7 18,000.4
+49.8 124,567.7 129,158.9 4,541.4
+27,255.3 105,619.5 140,335.1 7,460.3
+10.6 (33,389.6) 38,060.4 71,439.4
+27,259.3 27,259.3
+394.7
+20.09.2010 USD
+2,709.2
+2,528.3
+4,341.2 13,603.0
+109.0
+23,364.7
+7,523.1
+555.7
+29.9
+89.4
+100.00%
+39.5
+12.8
+26.7
+100.00%
+(12,674.7)
+119.3
+Taro Pharmaceuticals U.S.A., Inc.
+26
+73.15
+Sun Pharma Philippines, Inc.
+08.12.2011 PHP
+1.51
+13.0
+22
+Caraco Pharmaceuticals Private Limited
+12.01.2012 INR
+1.00
+23
+Sun Pharma Laboratories Limited
+09.03.2012 INR
+1.00
+24
+Taro Pharmaceutical Industries Ltd. (Taro)
+20.09.2010 USD
+73.15
+25
+Taro Pharmaceuticals Inc.
+20.09.2010 USD
+- (12,674.7)
+100.00%
+4.4
+512.8
+69.4
+1.2
+77.78%
+(0.9)
+(0.9)
+77.78%
+28
+Taro Pharmaceuticals Europe B.V.
+20.09.2010 EURO
+85.89
+1.5
+29
+Taro International Ltd.
+20.09.2010 USD
+73.15
+30
+Dusa Pharmaceuticals, Inc.
+19.12.2012 USD
+73.15
+0.7
+0.4
+5.1
+1,718.7 2,283.6
+13,139.8 13,708.7
+596.8
+21
+77.78%
+77.78%
+3.2
+100.00%
+-
+512.8
+100.00%
+(155.4)
+224.8
+100.00%
+57.3
+-
+57.3
+100.00%
+(0.1)
+(0.1)
+100.00%
+692.3 68,802.3 22,581.4
+9,566.0 15,737.7 (27,917.8)
+61,111.7 18,991.7 (303.2)
+691.5 27,575.9 (32,978.9)
+3,966.1 18,615.3
+100.00%
+365.0 (28,282.8)
+(929.9) 626.7
+31,072.9
+100.00%
+(8.5)
+73.15
+-
+12
+Alkaloida Chemical Company Zrt.
+05.08.2005 USD
+73.15
+6,529.2
+13
+Sun Pharmaceutical Industries (Australia)
+11.03.2008 AUD
+55.71
+3,880.2
+9,121.7 11,498.6 2,376.9
+44,544.3 52,054.9 981.4
+(3,382.2) 7,210.4 6,712.4
+-
+478.9
+(55.6)
+534.5
+100.00%
+538.6
+20.09.2010 USD
+2,989.2
+3,464.7
+The Taro Development Corporation
+100.00%
+(20.2)
+100.00%
+Limited
+9
+Sun Pharma De Venezuela, C.A.
+06.11.2011 VES
+0.00
+100.00%
+10
+Chattem Chemicals Inc.
+24.11.2008 USD
+73.15
+2,518.7
+1,402.4 4,339.9
+418.8
+2,194.9
+199.5
+36.0
+163.5
+11
+3.2
+564.9
+568.2
+402.9
+370.2
+18
+Sun Pharmaceuticals SA (Pty) Ltd
+22.10.2008 ZAR
+4.94
+19
+Sun Laboratories FZE
+13.03.2011 USD
+73.15
+896.2
+20
+Sun Pharma Japan Ltd.
+01.03.2012 JPY
+0.66
+104.5
+5.0
+122.0
+1,347.3
+(2.1) 1,616.6 1,616.6
+52,149.7 83,524.3
+4.2
+297.3
+293.1
+(1,044.6) 16,631.4 16,779.8
+1,724.7 7,618.3 5,789.1
+11.5
+1,470.8
+6.5
+(8.8)
+(0.3)
+301.7
+32.7
+73.15
+Sun Pharma Global FZE
+99.99%
+(359.1)
+(359.1)
+100.00%
+Pty Limited
+14
+Aditya Acquisition Company Ltd.
+22.04.2007 ILS
+21.91
+15
+Sun Pharmaceutical Industries (Europe) B.V. 29.06.2007 EURO
+85.89
+1.5
+16
+Sun Pharmaceuticals Germany GmbH
+11.08.2008 EURO
+85.89
+2.1
+17
+25.11.2008 USD
+(4.0)
+0.2
+77.78%
+38
+Sun Pharma Holdings
+06.08.2015 USD
+73.15 250,226.1
+(20,759.8) 230,389.4
+923.1
+(29.2)
+(29.2)
+100.00%
+100.00%
+PI Real Estate Ventures, LLC
+15.07.2014 USD
+73.15
+40
+Sun Pharma East Africa Limited
+41
+Basics GmbH
+13.06.2014 KES
+24.03.2015 EURO
+39
+(0.6)
+(0.6)
+44.6
+36
+Universal Enterprises Private Limited
+31.08.2012 INR
+1.00
+4.5
+0.7
+8.3
+3.1
+(0.1)
+(0.1)
+100.00%
+37
+Sun Pharma Switzerland Ltd.
+10.06.2013 CHF
+77.61
+7.8
+0.8
+10.2
+1.6
+0.67
+0.1
+85.89
+418.7
+123.3
+100.00%
+532.5
+22.7
+7.7
+15.0
+100.00%
+3,942.9
+65.1
+21.2
+43.9
+100.00%
+904.9
+53.4
+9.5
+43.9
+100.00%
+2,177.6
+175.1
+123.3
+Company Private Limited)
+219.4
+100.84 3,081.2
+85.89
+42 "Ranbaxy Pharmaceuticals Ukraine" LLC
+24.03.2015 UAH
+2.63
+105.0
+43
+Sun Pharmaceuticals Morocco LLC
+24.03.2015 MAD
+8.08
+98.8
+44
+Sun Pharmaceutical Industries S.A.C.
+45
+Ranbaxy Holdings (U.K.) Limited
+24.03.2015 PEN
+24.03.2015 GBP
+19.38
+84.1
+46
+Sun Pharma France (Formerly known as
+24.03.2015 EURO
+2,467.9 2,467.9
+(77.4) 426.4 503.7
+565.9
+6,565.3 5,580.7
+228.4 440.5 107.1
+18.8 2,263.3 2,145.7
+(214.1) 428.1 558.1
+153.8 3,236.3
+2,142.9 (5,124.8) 1,157.8 4,139.7
+(Formerly known as Softdeal Trading
+100.00%
+(0.1)
+* in Million
+Sun Pharmaceutical Industries Limited
+CARE
+Investment
+Date of
+Sr
+Name of the Subsidiary Company
+No
+acquisition of
+subsidiary
+Reporting
+Currency
+Rate Capital
+Reserve
+Total
+Assets
+Total Other than
+Liabilities Investment in
+Subsidiary
+Profit/
+Turnover (Loss) before
+Provision for
+Taxation
+Profit/
+(Loss) after
+Proposed
+Dividend
+% of
+Shareholding
+PART "A": Subsidiaries
+Taxation
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint venture
+264
+2,157.8
+571.2
+4,527.0
+31
+Faststone Mercantile Company Private
+01.04.2012 INR
+1.00
+0.1
+3.1
+3.2
+296.5
+0.3
+115.1
+(1,382.4)
+0.1
+456.1
+1,678.9
+77.78%
+100.00%
+0.2
+100.00%
+Limited
+263
+FORM AOC - 1
+0.2
+Taxation
+Neetnav Real Estate Private Limited
+Skisen Labs Private Limited
+01.04.2012 INR
+1.00
+163.6
+(163.9)
+0.3
+0.0
+(0.1)
+(0.1)
+100.00%
+35
+Softdeal Pharmaceutical Private Limited
+01.04.2012 INR
+1.00
+0.1
+10.8
+11.0
+0.1
+(0.1)
+34
+32
+100.00%
+0.1
+01.04.2012 INR
+1.00
+0.1
+2,923.4
+3,078.0
+154.5
+1.6
+1.4
+0.4
+1.0
+100.00%
+33
+Realstone Multitrade Private Limited
+01.04.2012 INR
+1.00
+0.1
+2.2
+2.3
+0.2
+0.1
+(24.2)
+(5.9) (32,973.0)
+19.7
+Annual Report 2020-21
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint venture
+FORM AOC - 1
+100.00%
+(167.5)
+(33.0)
+100.00%
+(104.4)
+PART "A": Subsidiaries
+(104.4)
+5,214.4 (200.5)
+825.4 5,473.2
+157.7
+0.97
+24.03.2015 RUB
+AO Ranbaxy
+60
+-
+0.6
+4,490.1
+in Million
+Investment
+Sr
+85.89
+24.03.2015 EURO
+Sun Pharma Laboratorios, S.L.U (formerly
+61
+Taxation
+% of
+Shareholding
+Proposed
+Dividend
+Profit/
+(Loss) after
+Provision for
+Taxation
+Profit /
+Turnover (Loss) before
+Taxation
+Total Other than
+Liabilities Investment in
+Subsidiary
+Total
+Assets
+Reserve
+Capital
+Rate
+Reporting
+Currency
+Date of
+acquisition of
+subsidiary
+No
+Name of the Subsidiary Company
+(14.2) 597.2
+610.8
+85.89
+24.03.2015 EURO
+100.00%
+21.0
+6.7
+27.7
+562.6
+100.00%
+80.5
+13.8
+94.3
+4,728.3
+100.00%
+(0.3)
+(0.3)
+(0.1)
+5.8
+28.4
+3,596.0 1,855.0
+358.2 113.2
+1,999.1 2,563.3
+1,153.6 914.2
+1,602.4
+975.2
+(32.3)
+(452.2)
+165.9
+(571.9)
+(29.6)
+755.0
+975.2
+559.6 1,587.4
+950.9
+73.15
+24.03.2015 USD
+1,165.3
+85.9
+(182.2)
+86.16%
+Ranbaxy Ireland Limited
+59
+100.00%
+44.5 (2,249.5)
+(2,205.0)
+76.9
+67.50%
+124.5
+-
+124.5
+176.1
+100.00%
+(50.2) (2,046.1)
+(2,096.3)
+100.00%
+22.4
+22.4
+1,512.2
+6,780.4
+829.9
+36.7 (218.9)
+471.3
+877.1
+319.9
+3,479.3
+471.2
+286.5
+5,438.1
+13,691.3
+9,948.4 13,333.3 2,949.2
+19,230.1 66,923.1 678.5
+47,014.5
+73.15
+24.03.2015 USD
+Sun Pharma (Netherlands) B.V. (Formerly
+67
+435.7
+17.43
+24.03.2015 RON
+Terapia SA
+66
+as Ranbaxy Pharmaceuticals Canada Inc.)
+100.00%
+97.0
+97.0
+462.1
+64.6
+2,445.2
+3,017.2
+200.1
+100.00%
+251.1
+78.6
+329.7
+3,105.4
+1.9
+437.6 4,344.6 3,906.7
+62,545.7 62,545.7
+-
+73.15
+18.11.2016 USD
+Sun Pharmaceutical Holdings USA, Inc
+69
+0.3
+0.97
+19.12.2016 RUB
+JSC Biosintez
+68
+known as Ranbaxy (Netherlands) B.V.)
+100.00%
+96.81%
+Ranbaxy Inc.
+194.5 1,496.2 1,171.0
+58.07
+Ranbaxy Farmaceutica Ltda.
+63
+95.67%
+449.5
+116.6
+566.1
+2,772.5
+1,283.9 2,013.2 582.9
+146.4
+17.63
+24.03.2015 MYR
+Ranbaxy (Malaysia) SDN. BHD.
+62
+Laboratorios Ranbaxy, S.L.U.)
+100.00%
+27.4
+3.7
+31.1
+1,122.0
+24.03.2015 BRL
+130.7
+12.67
+(1,412.2) 2,107.5 3,299.7
+24.03.2015 CAD
+Sun Pharma Canada Inc. ( Formerly known
+65
+100.00%
+440.1
+(279.1)
+161.0
+2,971.4
+(685.7) 2,391.7 2,108.0
+969.4
+55.71
+24.03.2015 AUD
+Sun Pharma ANZ Pty Ltd
+64
+100.00%
+13.0
+1.8
+14.8
+2,073.2
+220.0
+58
+406.6
+24.03.2015 USD
+3
+Sun Pharmaceutical Industries, Inc.
+14.06.2011 USD
+73.15
+-
+4
+Sun Farmaceutica do Brasil Ltda.
+22.05.2009 BRL
+12.67
+70.6
+5
+Sun Pharma De Mexico S.A. DE C.V.
+03.12.2002 MXN
+3.56
+3.6
+(2,563.8) 1,303.7
+886.2 1,007.5
+(8.7)
+1.4
+2,023.3 3,038.1 963.0
+57,856.6 113,915.3 56,058.7
+3,796.9
+3.1
+-
+51.8
+(1.7)
+0.86
+Sun Pharmaceutical (Bangladesh) Limited
+acquisition of
+subsidiary
+Reporting
+Currency
+Rate
+Capital
+Reserve
+Total
+Assets
+Total Other than
+Liabilities Investment in
+Subsidiary
+Profit/
+Turnover (Loss) before
+Taxation
+Provision for
+Taxation
+Profit/
+(Loss) after
+Proposed
+Dividend
+% of
+Shareholding
+Taxation
+1
+Green Eco Development Centre Limited
+12.11.2010 INR
+1.00
+7.0
+2
+29.03.2001 BDT
+No
+(1.7)
+1,826.9
+0.2
+0.2
+100.00%
+7
+Sun Pharmaceutical Peru S.A.C.
+27.06.2006 PEN
+19.38
+(164.1)
+0.3
+164.4
+(13.5)
+(13.5)
+99.33%
+8
+OOO "Sun Pharmaceutical Industries"
+12.11.2007 RUB
+0.97
+(180.4)
+73.15
+3.56
+100.00%
+13.02.2002 MXN
+6
+12,503.8 61,442.1
+505.5
+4,533.4
+184.9
+320.6
+72.50%
+1,687.3
+2,846.1
+100.00%
+1,618.4
+(155.9)
+5.3
+(161.2)
+100.00%
+117.7
+1,195.3
+393.4
+112.7
+280.7
+75.00%
+SPIL De Mexico S.A. DE C.V.
+Name of the Subsidiary Company
+265
+Date of
+100.84
+24.03.2015 GBP
+Ranbaxy (U.K.) Limited
+52
+9.7
+4.64
+24.03.2015 EGP
+Rexcel Egypt LLC
+51
+known as Ranbaxy Egypt Ltd)
+100.00%
+(89.3)
+(89.3)
+410.6
+100.00%
+128.2
+1.8
+130.0
+3,977.7
+2,193.2
+100.00%
+53
+24.03.2015 PLN
+Ranbaxy Signature LLC
+Sr
+57
+17.5
+73.15
+24.03.2015 USD
+56
+269.0
+2.34
+24.03.2015 THB
+Ranbaxy (Thailand) Co., Ltd.
+55
+7.7
+0.19
+24.03.2015 NGN
+Ranbaxy Nigeria Limited
+54
+79.1
+18.43
+Ranbaxy (Poland) SP. Z O.O.
+151.9
+Ohm Laboratories, Inc.
+5,788.8
+Sun Pharma Italia SRL (Formerly known as 24.03.2015 EURO
+Ranbaxy Italia S.P.A.)
+47
+Ranbaxy Pharmacie Generiques)
+100.00%
+27.0
+27.0
+2,419.1
+100.00%
+(0.7)
+(0.7)
+1.3
+100.00%
+13.3
+5.6
+623.1
+100.00%
+60.8
+151.9
+114.3
+85.89
+4.3
+18.9
+1,960.9 1,851.8
+104.8
+4.64
+Sun Pharma Egypt Limited LLC (Formerly
+50
+1,117.5 5,509.8 3,403.8
+1,146.4 3,112.0 1,879.0
+(447.8) 675.4 226.7
+86.6
+4.94
+24.03.2015 ZAR
+Ranbaxy South Africa (Pty) Ltd
+24.03.2015 EGP
+988.5
+2,913.7
+76.2
+49
+76.2
+896.5
+48
+Ranbaxy Pharmaceuticals (Pty) Ltd
+24.03.2015 ZAR
+100.00%
+4.94
+5. Self-declaration by the shareholder regarding the
+satisfaction of the place of effective management
+(POEM), principal purpose test, General Anti
+Avoidance Rule (GAAR), Simplified Limitation of
+Benefit test (wherever applicable), as regards the
+eligibility to claim recourse to concerned Double
+Taxation Avoidance Agreements.
+h)
+e) Application of TDS rate is subject to necessary
+verification as per details as available in Register of
+Members as on the Record Date, i.e. Tuesday,
+August 24, 2021, and other documents available
+with the Company / Company's RTA.
+All queries/ grievances/ issues in this regard shall be
+attended/addressed on rnt.helpdesk@linkintime.co.in.
+Sun Pharmaceutical Industries Limited
+CARE
+275
+Annual Report 2020-21
+submitted to the Company / Company's RTA at
+sunpharmadivtax@linkintime.co.in or can be
+uploaded on the link https://linkintime.co.in/
+formsreg/submissionof-form-15g-15h.html on or
+before August 24, 2021 to enable the Company
+to determine the appropriate TDS / withholding
+tax rate applicable. Any communication on the tax
+determination/ deduction received post 11:59 PM
+(IST) of August 24, 2021 shall not be considered for
+the payment of Final Dividend for the financial year
+2020-21.
+26AS).
+The Company will issue soft copy of TDS certificate
+to its shareholders through e-mail registered with
+Company/Company's RTA post payment of dividend.
+Shareholders will be able to download the TDS
+certificate from the Income Tax Department's website
+https://incometaxindiaefiling.gov.in (refer to Form
+Lower/Nil tax deduction certificate obtained from
+Income Tax Authority
+The overseas trust can also be given the tax treaty rate.
+However, the same can be litigative and hence, on a
+conservative basis, withholding on dividends paid to
+overseas trust should be as per Income-tax Act, 1961
+only
+Lower/nil tax deduction certificate u/s 195(3) obtained
+from Income Tax Authority. Self-declaration confirming
+that the income is received on its own account and not
+on behalf of the Foreign Bank.
+(Note: Application of beneficial tax treaty rate shall
+depend upon the completeness of the documents
+submitted by the non-resident shareholder and review
+to the satisfaction of the Company)
+Member/s will be responsible to indemnify the
+Company and also, provide the Company with all
+information/documents and co-operation in any
+assessment / appellate proceedings.
+The aforesaid documents such as Form No. 15G/
+15H, documents under section 196, 197A, FPI
+Registration Certificate, Tax Residency Certificate,
+Lower/Nil Tax deduction certificate etc. can be
+d)
+any misrepresentation, inaccuracy or omission
+f)
+2016-2017
+4. Self-declaration by the shareholder for non-
+existence of permanent establishment/ fixed base in
+India
+2015-2016
+2014-2015
+2013-2014
+Dividend for Financial Year
+20. Pursuant to Section 124 of the Companies Act, 2013 the amount of dividend remaining unclaimed for a period
+of seven years shall be transferred to the Investor Education and Protection Fund ("IEPF"). The Company will be
+transferring the unclaimed dividends during the financial years ending March 31, 2022 to March 31, 2028 as given
+below:
+This communication is not exhaustive and does not
+purport to be a complete analysis or listing of all
+potential tax consequences in the matter of dividend
+payment. Shareholders should consult their tax
+advisors for requisite action to be taken by them.
+of information provided by the Member/s, such
+The tax withholding rates referred above are based on
+the law prevailing as on the date.
+(including interest, penalty, etc.) arising from
+In the event of any income tax demand
+g)
+j)
+i)
+In case TDS is deducted at a higher rate, an option is
+still available with the shareholder to file the return
+of income and claim an appropriate refund from the
+Income-tax department.
+In the event there is ambiguity in law or interpretation
+or matters concerning tax withholding, the highest
+applicable tax withholding rate shall be considered on
+a conservative basis.
+3. Form No. 10F duly filled in & signed
+In view of the above, the Company would check
+whether shareholder is a 'specified person' under
+section 206AB and if any shareholder is found as a
+'specified person' as defined in Section 206AB then
+the Company shall be liable to deduct tax at source at
+higher rate in such case.
+Income Tax Department u/s 197 of
+Income Tax Act, 1961
+Further, the Central Board of Direct Taxes has issued a
+circular no. 11 of 2021 to notify a functionality "Compliance
+Check for Sections 206AB & 206CCA" on the reporting
+portal of the Income-tax Department to facilitate the tax
+deductor/collector to check if the deductee/collectee is a
+'specified person' under Section 206AB.
+Notice
+274
+If the provision of section 206AA of the Income-tax
+Act, 1961 (deduction of tax at higher rate for non-
+furnishing of PAN by the deductee) is applicable to a
+specified person, in addition to the provision of this
+section, the tax shall be deducted at higher of the two
+rates provided in this section and in section 206AA of
+the Income-tax Act, 1961.
+⚫ at the rate of 5%.
+• at twice the rate specified in the relevant provision;
+⚫ at twice the rate in force; or
+The TDS rate for payments made to the specified
+persons stated above, shall be the higher of the
+following:
+Higher rates of TDS for the purpose of section 206AB
+of the Income-tax Act, 1961:
+No TDS as per section 197A (1E) of the Income Tax Act,
+1961
+Necessary documentary evidence as per Circular No.
+18/2017 issued by Central Board of Direct Taxes
+(CBDT)
+SEBI AIF registration certificate to claim benefit u/s
+197A (1F) read with section 10(23FBA) of the Income
+Tax Act, 1961
+Aggregate TDS and TCS in his case are 50,000 or
+more in the each of these two PYs.
+Time limit to file the returns under section 139(1)
+of the Income-tax Act, 1961 for both the PYs has
+expired; and
+has not filed income tax returns for two
+Assessment Years ('AYS') relevant to the two
+Previous Years ('PYs') immediately prior to the PY
+in which tax is deducted;
+c)
+b)
+2017-2018
+b)
+To avail beneficial rate of tax as per applicable tax
+treaty, following documents would be required:
+1. Tax Residency certificate issued by revenue
+authority of country of residence of shareholder for
+the year in which dividend is received
+2. Permanent Account Number (PAN)
+NON-RESIDENT SHAREHOLDERS
+FPI registration number / certificate.
+Rate specified in the
+Certificate
+deduction certificate issued by
+5. Availability of Lower/Nil tax
+20% (plus applicable
+surcharge and cess)
+NIL
+surcharge and cess)
+20% (plus applicable
+surcharge and cess) or tax
+treaty rate, whichever is
+beneficial
+Overseas Trust
+4.
+3. Indian Branch of a Foreign Bank
+Foreign Portfolio Investors (FPIs)
+Other Non-resident shareholders
+2.
+1. Foreign Institutional Investors (Flls) / 20% (plus applicable
+Documents Required (if any)
+Rate of Deduction of Tax at
+Source
+No.
+Particulars
+Sr.
+Tax deducted at source on dividend payment to non-resident shareholders if the non-resident shareholders submit
+and register following documents with the Company/ Company's RTA - Link Intime India Private Limited
+2018-2019
+22. The members are requested to get their physical
+2019-20
+(iii) Pursuant to SEBI Circular No. SEBI/HO/CFD/
+CMD/CIR/P/2020/242 dated December 9, 2020,
+under Regulation 44 of the Listing Regulations
+(ii) Shareholders who have already voted prior to the
+meeting date would not be entitled to cast their
+vote again.
+Monday, August 30, 2021 at 05:00 p.m.
+During this period, shareholders of the Company
+holding shares either in physical form or in
+dematerialised form, as on the cut-off date, i.e.
+Tuesday, August 24, 2021, may cast their vote
+electronically. The e-voting module shall be
+disabled by CDSL for voting thereafter. Those
+members who will be present in the 29th AGM
+through VC/OAVM facility and have not cast
+their vote on the Resolutions through remote
+e-voting and are otherwise not barred from doing
+so, shall be eligible to vote through e-voting
+system during the 29th AGM.
+The remote e-voting period begins on Saturday,
+August 28, 2021 at 09:00 a.m. and ends on
+(i)
+30. Instructions for Remote E-Voting and E-Voting during
+the Meeting:
+29. The 29th AGM has been convened through VC/OAVM
+in compliance with the applicable provisions of the
+Companies Act, 2013 read with the MCA Circulars.
+Annual Report 2020-21
+28. In line with the Ministry of Corporate Affairs (MCA)
+Circular No. 17/2020 dated April 13, 2020, the Notice
+calling the 29th AGM has been uploaded on the
+website of the Company at www.sunpharma.com. The
+Notice can also be accessed from the websites of the
+Stock Exchanges i.e. BSE Limited and National Stock
+Exchange of India Limited at www.bseindia.com and
+www.nseindia.com respectively. The 29th AGM Notice
+is also disseminated on the website of CDSL (agency
+for providing the Remote e-voting facility and e-voting
+system during the 29th AGM) i.e. www.evotingindia.com.
+Company as on the cut-off date ("Record Date"), i.e.,
+as on Tuesday, August 24, 2021. A person who is not a
+Member as on the cut-off date should treat this Notice
+solely for information purposes. Those who acquire
+equity shares of the Company and become members of
+the Company after the Notice is sent, and hold equity
+shares as of the cut-off date, can vote/ attend the 29th
+AGM, in the manner as detailed in Note no. 30.
+26. The voting rights of Members shall be in proportion
+to their shares in the paid-up share capital of the
+25. The attendance of the Members attending the 29th
+AGM through VC/OAVM will be counted for the
+purpose of ascertaining the quorum under Section 103
+of the Companies Act, 2013.
+24. The Members will be able to join the 29th AGM in the
+VC/OAVM mode 30 minutes before the scheduled
+time of the commencement of the Meeting by
+following the procedure as detailed in this Notice.
+As per the MCA Circulars, the facility of participation
+at the 29th AGM through VC/OAVM will be made
+available to at least 1000 members on first come first
+served basis. This will not include large Shareholders
+(Shareholders holding 2% or more shareholding),
+Promoters, Institutional Investors, Directors, Key
+Managerial Personnel, the Chairpersons of the Audit
+Committee, Nomination and Remuneration Committee
+and Stakeholders Relationship Committee, Auditors
+etc. who are allowed to attend the 29th AGM without
+restriction on account of first come first served basis.
+23. Pursuant to the provisions of Section 108 of the
+Companies Act, 2013 read with Rule 20 of the
+Companies (Management and Administration) Rules,
+2014 (as amended) and Regulation 44 of the Listing
+Regulations (as amended), and MCA Circulars, the
+Company is providing facility of remote e-voting to its
+Members in respect of the business to be transacted
+at the 29th AGM of the Company. For this purpose, the
+Company has appointed Central Depository Services
+(India) Limited ("CDSL") for facilitating voting through
+electronic means, as the authorised e-voting agency.
+The facility of casting votes by a member using remote
+e-voting as well as the e-voting system on the date of
+the 29th AGM will be provided by CDSL.
+shares dematerialised, since vide SEBI Circular dated
+June 08, 2018 read with SEBI Circular dated December
+03, 2018 with effect from April 1, 2019, except in
+case of transmission or transposition, the securities
+shall not be transferred unless they are held in the
+dematerialised form.
+a)
+27. The Board of Directors have appointed Mr. Chintan
+Goswami, Partner of KJB & Co. LLP, Practising
+Company Secretaries, Mumbai and failing him,
+Mr. Alpesh Panchal, Partner of KJB & Co. LLP,
+Practising Company Secretaries, Mumbai as the
+Scrutiniser to scrutinise the e-voting during the
+29th AGM by electronic mode and remote e-voting
+process in a fair and transparent manner. They have
+communicated their willingness to be appointed as
+such and they are available for the said purpose.
+277
+Sun Pharmaceutical Industries Limited
+CARE
+278
+3) Visit the e-Voting website of NSDL. Open web browser by typing the following URL:
+https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the home page
+of e-Voting system is launched, click on the icon "Login" which is available under 'Shareholder/
+Member' section. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit
+demat account number hold with NSDL), Password/OTP and a Verification Code as shown on the
+screen. After successful authentication, you will be redirected to NSDL Depository site wherein
+you can see e-voting page. Click on company name - Sun Pharmaceutical Industries Limited or
+e-voting service provider name - CDSL and you will be redirected to CDSL's website for casting
+your vote during the remote e-voting period or joining virtual meeting & voting during the meeting
+2) If the user is not registered for IDEAS e-Services, option to register is available at
+https://eservices.nsdl.com. Select "Register Online for IDEAS "Portal or click at
+https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
+-
+4) Alternatively, the user can directly access e-voting page by providing Demat Account Number
+and PAN No. from an e-voting link available on www.cdslindia.com home page or click on
+https://evoting.cdslindia.com/Evoting/EvotingLogin The system will authenticate the user by
+sending OTP on registered Mobile & E-mail as recorded in the Demat Account. After successful
+authentication, user will be able to see the e-voting option where the e-voting is in progress and
+also able to directly access the system of the respective e-voting service provider, i.e. CDSL.
+1) If you are already registered for NSDL IDEAS facility, please visit the e-Services website of NSDL.
+Open web browser by typing the following URL: https://eservices.nsdl.com either on a Personal
+Computer or on a mobile. Once the home page of e-Services is launched, click on the "Beneficial
+Owner" icon under "Login" which is available under 'IDEAS' section. A new screen will open. You
+will have to enter your User ID and Password. After successful authentication, you will be able to
+see e-voting services. Click on "Access to e-voting" under e-voting services and you will be able
+to see e-voting page. Click on company name – Sun Pharmaceutical Industries Limited or e-voting
+service provider name - CDSL and you will be re-directed to e-voting service provider website for
+casting your vote during the remote e-voting period or joining virtual meeting & voting during the
+meeting.
+https://web.cdslindia.com/myeasi/Registration/EasiRegistration
+3) If the user is not registered for Easi/Easiest, option to register is available at
+2) After successful login the Easi / Easiest user will be able to see the e-voting option for eligible
+companies where the e-voting is in progress as per the information provided by company. On
+clicking the e-voting option, the user will be able to see e-voting page of the e-voting service
+provider i.e. CDSL for casting your vote during the remote e-voting period or joining virtual
+meeting & voting during the meeting. Additionally, there is also link provided to access the system
+of e-voting service provider i.e. CDSL, so that the user can visit the e-voting service provider's
+website directly.
+1) Users who have opted for CDSL Easi / Easiest facility, can login through their existing user id and
+password. Option will be made available to reach e-voting page without any further authentication.
+The URL for users to login to Easi / Easiest are https://web.cdslindia.com/myeasi/home/login or
+visit www.cdslindia.com and click on Login icon and select New System Myeasi.
+Login Method
+Individual
+Shareholders holding
+securities in demat
+mode with NSDL
+Shareholders holding
+securities in Demat
+mode with CDSL
+Type of shareholders
+Individual
+Pursuant to aforesaid circular, login method for e-voting and joining virtual meetings for individual shareholders
+holding securities in demat mode CDSL/NSDL is given below:
+(iv) In terms of SEBI Circular no. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9, 2020 on e-voting
+facility provided by listed companies, individual shareholders holding securities in demat mode are allowed to
+vote through their demat account maintained with Depositories and Depository Participants. Shareholders are
+advised to update their mobile number and e-mail id in their demat accounts in order to access e-voting facility.
+In order to increase the efficiency of the voting process, pursuant to a public consultation, SEBI has decided
+to enable e-voting to all the demat account holders, by way of a single login credential, through their demat
+accounts/websites of Depositories/ Depository Participants. Demat account holders would be able to cast their
+vote without having to register again with the e-voting service providers, thereby, not only facilitating seamless
+authentication but also enhancing ease and convenience of participating in e-voting process.
+listed entities are required to provide remote e-voting facility to its shareholders, in respect of all shareholders'
+resolutions.
+The procedure to claim shares from IEPF Authority
+is provided on the website of the Company and can
+be accessed from: www.sunpharma.com under head
+"Investor" sub-head "Shareholder Information".
+2019-2020 (Interim Dividend)
+due for transfer to IEPF Authority on October 27, 2021
+are available on website of the Company
+www.sunpharma.com under head "Investor" sub-head
+"Shareholder Information". The shareholders are
+requested to claim their unpaid or unclaimed Dividend
+latest by October 13, 2021 after which date the
+Company shall initiate the process of transferring the
+eligible shares to the IEPF Authority.
+Notice
+26.09.2017
+16.10.2023
+*1.00
+17.09.2016
+29.11.2022
+3.00
+31.10.2015
+*3.50
+27.10.2021
+Date on which
+*1.50
+27.09.2014
+Rate of Dividend
+per share of *1/-
+each
+Date of
+Declaration of
+Dividend Entitled
+Members who have yet not encashed their
+dividend warrants, for the financial year ended
+March 31, 2014 and onwards are requested to
+approach the Company's Registrar & Share Transfer
+Agents, Link Intime India Pvt. Ltd. at C-101, 247 Park,
+L.B.S. Marg, Vikhroli (West), Mumbai - 400083,
+Maharashtra, India, to claim their unpaid Dividend.
+The Dividend declared for the financial year ended
+March 31, 2014 and remaining unpaid and unclaimed,
+will become due for transfer to the Investor Education
+and Protection Fund on October 27, 2021. Pursuant
+to the provisions of Investor Education and Protection
+Fund Authority (Accounting, Audit, Transfer and
+Refund) Rules, 2016, the Company has uploaded the
+details of unpaid and unclaimed amounts lying with
+the Company as on August 27, 2020 (date of the last
+Annual General Meeting of the Company) on the
+website of the Company viz., www.sunpharma.com
+under head "Investor" sub-head "Shareholder Information"
+as well as on the website of the Ministry of Corporate
+Affairs viz., www.iepf.gov.in.
+2020-21 (Interim Dividend)
+Dividend will
+become due for
+transfer to IEPF
+28.10.2024
+26.09.2018
+*2.00
+276
+The shares in respect of which dividend has remained
+unpaid or unclaimed for 7 (seven) consecutive years
+commencing from the financial year 2013-14 are liable
+for transfer to the IEPF Authority pursuant to the
+Consequently, the Company has transferred the shares
+to the IEPF Authority in respect of which dividend has
+remained unpaid or unclaimed from the financial year
+2012-13 for 7 (seven) consecutive years, the details
+of which are available on website of the Company
+www.sunpharma.com under head "Investor" sub-head
+"Shareholder Information".
+21. The members may note that pursuant to Section
+124(6) of the Act read with Investor Education and
+Protection Fund Authority (Accounting, Audit, Transfer
+and Refund) Rules, 2016 as amended from time to time
+("the Rules"), the shares in respect of which dividend
+has not been paid or claimed by the members for seven
+consecutive years or more shall be transferred to the
+demat account created by the IEPF Authority.
+04.03.2028
+5.50
+29.01.2021
+28.09.2027
+*1.00
+27.08.2020
+11.03.2027
+*3.00
+06.02.2020
+29.09.2026
+*2.75
+28.08.2019
+27.10.2025
+Rules. The details of such shares which are becoming
+iii) The Finance Act, 2021 inserted a new section, section
+206AB as a special provision providing for higher rates
+of TDS for non-filers of income tax returns. The said
+section is effective from July 1, 2021. The provisions
+of section 206AB of the Income-tax Act, 1961 provide
+for higher rates of withholding tax, in instances where
+the specified person entitled to receive the money
+(deductee):
+certificate issued by Income Tax Department
+u/s 197 of Income Tax Act, 1961
+National Pension System Trust referred to in
+section 10(44) of the Income-tax Act, 1961
+In compliance with the MCA General Circular No.
+20/2020 dated May 5, 2020, the item nos. 5 to 10
+forming part of Special Business of this Notice are
+considered unavoidable and form part of this Notice.
+Pursuant to MCA Circulars read with SEBI Circulars,
+the facility to appoint proxy to attend and cast vote
+for the members is not available for this 29th AGM.
+However, in pursuance of Section 112 and Section 113
+of the Act, representatives of the members such as the
+President of India or the Governor of a State or body
+corporate can attend the 29th AGM through
+VC/OAVM and cast their votes through e-voting.
+In line with MCA Circulars read with circulars issued by
+Securities Exchange Board of India (SEBI) vide SEBI/
+HO/CFD/CMD1/CIR/P/2020/79 dated May 12, 2020
+and SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated
+January 15, 2021 (hereinafter referred to as "SEBI
+Circulars"), the Notice of 29th AGM along with the
+Annual Report for 2020-21 is being sent only through
+electronic mode to those members whose e-mail
+addresses are registered with the Company's Registrar
+& Share Transfer Agents, Link Intime India Pvt. Ltd.
+("RTA") / Depositories. Members may note that the
+Notice of the 29th AGM along with the Annual Report
+2020-21 is also available for download on the website
+of the Company at www.sunpharma.com and on the
+websites of the Stock Exchanges, i.e. BSE Limited
+and National Stock Exchange of India Limited at
+www.bseindia.com and www.nseindia.com
+respectively.
+7.
+6.
+5.
+4.
+Corporate members intending to appoint authorised
+representative(s) to attend and vote on their behalf at
+the 29th AGM are requested to submit to the Company
+a certified true copy of the resolution of the Board
+of Directors or other governing body of the body
+corporate authorising their representative(s) to attend
+and vote by e-mail to secretarial@sunpharma.com or
+scrutinizer@sunpharma.com before the commencement
+of the 29th AGM.
+3.
+April 8, 2020, General Circular No.17/2020 dated April
+Notice
+270
+As you are aware, in view of the situation arising due
+to COVID-19 global pandemic, the general meetings
+of the companies can be conducted as per the
+guidelines issued by the Ministry of Corporate Affairs
+(MCA) vide General Circular No. 14/2020 dated
+The Explanatory Statement pursuant to Section 102(1)
+of the Companies Act, 2013 ('the Act') relating to the
+Special Business(es) to be transacted at the 29th Annual
+General Meeting of the Company (the "Meeting" or
+"AGM") under Item Nos. 5 to 10, is annexed hereto. The
+relevant details as required under Regulation 36 of the
+SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 ("Listing Regulations") and Clause
+1.2.5 of Secretarial Standard on General Meetings
+issued by the Institute of Company Secretaries of India
+(SS-2), in respect of the persons seeking appointment/
+re-appointment as Directors and fixation of the terms
+of remuneration of Directors are given under the
+heading "Profile of Directors" forming part of this
+Notice.
+2.
+1.
+13, 2020 and General Circular No. 20/2020 dated May 05,
+2020, and General Circular No. 02/2021 dated January
+13, 2021 (hereinafter referred to as "MCA Circulars").
+The forthcoming 29th AGM of the Company scheduled
+on August 31, 2021 will thus be held through video
+conferencing ("VC") or other audio visual means ("OAVM").
+Hence, Members can attend and participate in the ensuing
+29th AGM through
+VC/OAVM.
+NOTES:
+In case of joint holders attending the 29th AGM, the
+member whose name appears as the first holder in
+the order of names as per Register of Members will
+be entitled to vote, provided the votes are not already
+cast by remote e-voting.
+9.
+15. The Board of Directors at its Meeting held on
+May 27, 2021, recommended a Final Dividend of
+*2/- (Rupees Two only) per equity share of 1/- each
+of the Company for the year ended March 31, 2021
+and the same if declared/ approved at the 29th AGM,
+will be paid on or before September 17, 2021, to
+the Company's members whose names stand in the
+Register of Members as beneficial owners at the close
+of business hours on Tuesday, August 24, 2021 as per
+the list provided by National Securities Depository
+Limited ("NSDL") and Central Depository Services
+(India) Limited ("CDSL") in respect of shares held in
+electronic form and as members in the Register of
+Members of the Company after giving effect to valid
+transmissions lodged with the Company on or before
+Tuesday, August 24, 2021.
+January 29, 2021 had declared an Interim Dividend
+of 5.50/- per Equity Share of 1/- each. The Interim
+Dividend was paid on February 17, 2021 to those
+shareholders who held shares as on February 10, 2021,
+being the record date for payment.
+14. The Board of Directors at its Meeting held on
+mobile number. The aforementioned documents shall
+be available for physical inspection at the registered
+office of the Company, on all working days, except
+Saturdays and Sundays, between 11:00 a.m. IST and
+1:00 p.m. IST, upto the date of 29th AGM.
+CARE
+271
+Annual Report 2020-21
+8.
+13. Relevant registers as required under the Companies
+Act, 2013 and the relevant documents referred to
+in the Notice and the Explanatory Statement will be
+available for inspection electronically upto the date
+of 29th AGM, and during the meeting hours. Those
+shareholders who wish to inspect the aforementioned
+documents electronically may send their requests to
+secretarial@sunpharma.com, mentioning their name,
+demat account number/folio number, e-mail id and
+(b) Members holding shares in dematerialised
+mode are requested to register/ update their
+e-mail addresses with the relevant Depository
+Participants.
+RTA at rnt.helpdesk@linkintime.co.in.
+(a) Members holding shares in physical mode and
+who have not registered/ updated their e-mail
+addresses with the Company/ RTA are requested
+to register/ update the same by writing to the
+Company/ RTA with details of folio number and
+attaching a self-attested copy of the PAN Card at
+secretarial@sunpharma.com or to the Company's
+11. For receiving all communication (including Notice and
+Annual Report) from the Company electronically:
+10. Those shareholders who have registered themselves as
+a speaker will only be allowed to express their views/
+ask questions during the meeting for a maximum time
+of 3 (three) minutes each, once the floor is open for
+shareholder queries. The Company reserves the right
+to restrict the number of speakers and number of
+questions depending on the availability of time for the
+AGM.
+Shareholders who would like to express their views/ ask
+questions during the 29th AGM may register themselves
+as a speaker by sending their request, mentioning their
+name, demat account number/folio number, e-mail id
+and mobile number, at secretarial@sunpharma.com
+between August 20, 2021 to August 25, 2021. The
+shareholders who do not wish to speak during the AGM
+but have queries may send their queries, mentioning
+their name, demat account number/folio number, e-mail
+id and mobile number, to secretarial@sunpharma.com.
+These queries will be suitably replied to by the Company
+by e-mail.
+The Register of Members and Share Transfer Books
+of the Company will be closed from Wednesday,
+August 25, 2021 to the date of the 29th AGM of the
+Company to be held on Tuesday, August 31, 2021
+(both days inclusive) for the purpose of the 29th AGM
+of the Company and for the payment of Final Dividend
+for the year 2020-21.
+12. Members will be able to attend the 29th AGM on
+August 31, 2021 through VC/ OAVM or view the live
+webcast by following the instructions detailed in Note
+no. 30.
+** The actual Final Dividend for the financial year 2020-21
+on equity shares to be declared/ approved by the members
+at the 29th Annual General Meeting will be for equity shares
+other than the equity shares in respect of which the equity
+shareholder(s) has/have waived/forgone his/her/their right
+to receive the dividend for the financial year ended March
+31, 2021 in accordance with the rules framed by the Board
+as per Note no. 16 hereinafter appearing.
+The Interim Dividend at *5.50/- per equity share of
+*1/- on 2,39,84,09,970 equity shares amounting to
+*13,19,12,54,835/-, has been paid on February 17, 2021,
+excluding interim dividend on 9,25,000 equity shares
+amounting to *50,87,500/- which had been waived to be
+received, by one of the shareholders.
+Sunil R. Ajmera
+Company Secretary
+8.
+Mr. Sailesh T. Desai shall have the powers of
+Other terms and conditions: Subject to the
+control and supervision of the Board of Directors
+and subject to the provisions of the Act,
+Minimum Remuneration: In the event of loss
+or inadequacy of profits in any financial year,
+Mr. Sailesh T. Desai shall be entitled to receive
+a total remuneration including perquisites, etc.
+upto the limit as approved by the members herein
+above, as minimum remuneration, subject to
+receipt of such approvals as may be required, if
+any.
+Company's contribution to provident fund and
+superannuation fund or annuity fund, gratuity
+payment as per Company's rules and encashment
+of leave at the end of his tenure, though payable,
+shall not be included in the computation of ceiling
+on remuneration and perquisites as aforesaid.
+Perquisites: He will be entitled to furnished/
+non-furnished accommodation or house
+rent allowance, gas, electricity, medical
+reimbursement, leave travel concession for
+self and family, club fees, personal accident
+insurance, company maintained car, telephone
+and such other perquisites in accordance with
+the Company's rules, the monetary value of such
+perquisites to be determined in accordance with
+the Income-Tax Rules, 1962.
+annum.
+general conduct and management of the affairs of
+the Company and he shall be entitled to exercise
+all such powers and to do all such acts and things
+the Company is authorised to exercise and all
+such powers, acts or things which are directed
+or required by the law or any other Act or by the
+Articles of Association of the Company except
+such powers/ acts/ things which are exercised
+or done by the Company in general meeting or
+by the Board of Directors at their meeting only.
+Mr. Sailesh T. Desai to perform such duties and
+exercise such powers as are additionally entrusted
+to him by the Board and/ or the Chairman and
+that he is further authorised to do all such acts,
+deeds, things and matters as he may be required
+to do, as a Whole-time Director.
+Salary (including bonus and perquisites) upto
+*2,00,00,000/- (Rupees Two Crores Only) per
+c)
+b)
+a)
+The remuneration payable shall be determined by the
+Board of Directors, from time to time within, however,
+the maximum limits set forth below for a period of 2
+(Two) years with effect from April 01, 2022 to
+March 31, 2024:
+REMUNERATION:
+as stated below, and the other terms and conditions
+of his appointment remaining the same as per the
+Agreement dated January 29, 2019 for the remaining
+period of his present term of appointment upto March
+31, 2024, as per draft revised agreement proposed to
+be entered into between Mr. Sailesh T. Desai and the
+Company which is hereby specifically sanctioned with
+the liberty to the Board of Directors to alter, vary and
+modify the terms and conditions of the remuneration,
+in such manner as may be agreed to between the
+Board of Directors and Mr. Sailesh T. Desai within and
+in accordance with the Act or any amendment thereto
+and agreed to between the Board of Directors and as
+may be acceptable to Mr. Sailesh T. Desai,
+Notice
+d)
+RESOLVED FURTHER THAT in the event of any
+statutory amendments, modifications or relaxation by
+the Central Government to Chapter XIII (Appointment
+and Remuneration of Managerial Personnel) and/or
+Schedule V to the Companies Act, 2013, the Board
+of Directors be and is hereby authorised to vary or
+increase the remuneration (including the minimum
+remuneration), i.e. the salary, perquisites, allowances,
+etc. within such prescribed limit or ceiling and the
+aforesaid Agreement between the Company and
+Mr. Sailesh T. Desai be suitably amended to give effect
+to such modification, relaxation or variation, subject to
+such approvals as may be required under law.
+RESOLVED FURTHER THAT the Board of Directors of
+the Company be and is hereby authorised to take such
+steps as they may deem fit, expedient or desirable to
+give effect to this Resolution."
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+By order of the Board of Directors
+For Sun Pharmaceutical Industries Ltd.
+*
+Registered Office:
+SPARC, Tandalja,
+Vadodara 390 012.
+Gujarat, India
+Place: Mumbai
+Date: May 27, 2021
+being paid to them by the Company for attending the
+Board/Committee Meetings of the Company."
+"RESOLVED THAT in conformity with the provisions
+of Article 115 of the Articles of Association of the
+Company and pursuant to the provisions of Section
+197 of the Companies Act, 2013 ("the Act"), read
+with Schedule V, and Rules thereto, and Regulation
+17(6) of the SEBI (Listing Obligations and Disclosure
+Requirements) Regulations, 2015, the approval of the
+members of the Company be and is hereby accorded
+for payment of commission to the Non-Executive
+Directors (Other than Managing Director and
+Whole-time Directors) of the Company, to be
+determined by the Board of Directors for each
+Non-Executive Director for each financial year for
+a period five years from the financial year ending
+on March 31, 2022 up to and including financial
+year ending on March 31, 2026 to be calculated in
+accordance with the provisions of Section 198 of the
+Act and distributed between such Non-Executive
+Directors in such a manner as the Board of Directors
+may from time to time determine, within the maximum
+limit of 1.00% (one per cent) of net profits of the
+Company or such other limit as may be specified in the
+Act from time to time, in addition to the sitting fees
+10. To consider and, if thought fit, to pass the following
+resolution as a Ordinary Resolution:
+"RESOLVED THAT pursuant to the provisions of
+Section 149, 152 and other applicable provisions,
+if any, of the Companies Act, 2013 ("the Act") read
+with Schedule IV of the Act and the Companies
+(Appointment and Qualifications of Directors) Rules,
+2014 and the applicable provisions of the SEBI (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015, including any statutory modification(s) or
+re-enactment(s) thereof, for the time being in force),
+pursuant to the recommendation of the Nomination
+and Remuneration Committee and the Board of
+Directors of the Company, Ms. Rama Bijapurkar
+(DIN: 00001835), who was appointed as an
+Additional Independent Director with effect from
+May 21, 2021, by the Board of Directors of the
+Company and who holds office upto the date of
+this 29th Annual General Meeting, be and is hereby
+appointed as an Independent Director of the Company,
+for a term of 5 (Five) years commencing from
+May 21, 2021 to May 20, 2026 and she shall not
+be liable to retire by rotation."
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+May 21, 2021 to May 20, 2026 and he shall not be
+liable to retire by rotation."
+9.
+CARE
+Sun Pharmaceutical Industries Limited
+269
+Annual Report 2020-21
+"RESOLVED THAT pursuant to the provisions of
+Section 149, 152 and other applicable provisions,
+any, of the Companies Act, 2013 ("the Act") read
+with Schedule IV of the Act and the Companies
+(Appointment and Qualifications of Directors) Rules,
+2014 and the applicable provisions of the SEBI (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015, (including any statutory modification(s) or
+re-enactment(s) thereof, for the time being in force),
+pursuant to the recommendation of the Nomination
+and Remuneration Committee and the Board of
+Directors of the Company, Dr. Pawan Goenka
+(DIN: 00254502), who was appointed as an
+Additional Independent Director with effect from
+May 21, 2021, by the Board of Directors of the
+Company and who holds office upto the date of
+this 29th Annual General Meeting, be and is hereby
+appointed as an Independent Director of the Company,
+for a term of 5 (Five) years commencing from
+if
+16. At the Extra Ordinary General Meeting of the
+members of the Company held on September 1, 2003,
+the members had approved, by way of a Special
+Resolution, certain amendments whereby few
+Articles were inserted in the Articles of Association
+of the Company relating to enabling the Company
+to implement any instruction from member(s) of the
+Company to waive / forgo his / their right to receive
+the dividend (interim or final) from the Company for
+any financial year. The above referred amendments
+as approved at the aforesaid Extra Ordinary General
+Meeting have been retained and are inter alia forming
+part of new set of Articles of Association adopted
+at the 24th Annual General Meeting of the Company
+held on September 17, 2016. Thus, the members
+of the Company can waive / forgo, if he/ they so
+desire(s), his/ their right to receive the dividend
+(interim or final) for any financial year effective from
+the dividend recommended by the Board of Directors
+of the Company for the year ended March 31, 2004
+on a year to year basis, as per the rules framed by the
+Board of Directors of the Company from time to time
+for this purpose. The member, if so wishes to waive /
+forgo the right to receive Dividend for the year ended
+March 31, 2021, shall fill up the form and send it to the
+Company's RTA on or before Tuesday, August 24, 2021.
+The form prescribed by the Board of Directors of the
+Company for waiving / forgoing the right to receive
+Dividend for any year shall be available for download
+on the Company's website www.sunpharma.com under
+section "Investor - Shareholder's Information- Statutory
+Communication" or can also be obtained from the
+Company's RTA.
+The Board of Directors of the Company at its meeting
+held on September 01, 2003 have framed the following
+rules under old Article 190A (corresponding Article
+142 as per the new set of Articles of Association)
+of the Articles of Association of the Company for
+members who want to waive / forgo the right to
+receive dividend in respect of financial year 2002-2003
+or for any year thereafter:
+NIL
+Securitisation Trust
+2.
+NIL
+Submission of Form No. 15G/15H
+1.
+Documents Required (if any)
+3.
+Rate of Deduction
+of Tax at Source
+Particulars
+Sr.
+No Tax Deductible at Source on dividend payment to resident shareholders if the shareholders submit and register
+following documents mentioned in column no. 4 of the below table with the Company/ Company's RTA - Link Intime
+India Private Limited
+ii)
+CARE
+Sun Pharmaceutical Industries Limited
+273
+No.
+Shareholders to whom section 194 of the
+NIL
+Income Tax Act, 1961 does not apply such as
+LIC, GIC, etc.
+7.
+Approved gratuity fund
+•
+Approved superannuation fund
+•
+Recognised provident funds
+•
+6.
+NIL
+Documentary evidence for coverage u/s 196 of the
+Income Tax Act, 1961
+Copy of registration/ document evidencing the
+shareholder being a securitisation trust (as defined in
+clause (d) of the Explanation below section 115TCA).
+Documentary evidence that the said provisions are not
+applicable.
+Declaration in Form No. 15G (applicable to any person
+other than a company or a firm) / Form No.15H
+(applicable to an Individual who is 60 years and above),
+fulfilling certain conditions. Please download Form
+No. 15G / 15H from the Income Tax website
+www.incometaxindia.gov.in
+NIL
+5. Category I and II Alternative Investment Fund
+NIL
+Shareholder covered u/s 196 of Income
+Tax Act, 1961 such as Government, RBI,
+corporations established by Central Act &
+mutual funds specified u/s 10(23D) of the
+Income-tax Act, 1961.
+4.
+Annual Report 2020-21
+NIL
+Lower/nil tax deduction certificate obtained from
+Income Tax Authority
+No document required (if no exemption is sought)
+interference with a Shareholder's Right to receive
+the dividend, if he does not wish to waive / forgo
+his right to receive the dividend. No action is
+required on the part of Shareholder who wishes
+to receive dividends as usual. Such Shareholder
+will automatically receive dividend as and when
+declared.
+Company for waiving / forgoing the right to
+receive dividend for any year is purely voluntary
+on the part of the Shareholder(s). There is no
+VII. The instruction by a Shareholder to the
+VI. The Equity Shareholders who wish to waive /
+forgo their right to receive the dividend for any
+year can inform the Company in the prescribed
+form only after the beginning of the relevant
+financial year for which the right to receive the
+dividend is being waived / forgone by him.
+such earlier Shareholder intimating his waiver
+/ forgoing the right to receive dividend will be
+invalid for the next succeeding Shareholder(s)
+unless such next succeeding Shareholder(s)
+intimates separately in the prescribed form, about
+his waiving/forgoing of the right to receive the
+dividend for the particular year.
+Notice
+272
+VIII. The decision of the Board of Directors of the
+Company or such person(s) as may be authorised
+by Board of Directors of the Company shall be
+final and binding on the concerned Shareholders
+on issues arising out of the interpretation and/or
+implementation of these Rules.
+The instruction once given by a Shareholder
+intimating his waiver / forgoing of the right to
+receive the dividend for any year for interim,
+final or both shall be irrevocable and cannot
+be withdrawn for that particular year for such
+waived/forgone the right to receive the dividend.
+But in case, the relevant Shares are sold by
+the same Shareholder before the Record Date
+/ Book Closure Date fixed for the payment of
+such dividend, the instruction once exercised by
+IV. The Shareholder, who wishes to waive / forgo
+the right to receive the dividend for any year
+shall send his irrevocable instruction waiving /
+forgoing dividend so as to reach the Company
+before the Record Date / Book Closure Date
+fixed for the payment of such dividend. Under no
+circumstances, any instruction received for waiver
+/ forgoing of the right to receive the dividend for
+any year after the Record Date / Book Closure
+Date fixed for the payment of such dividend for
+that year shall be given effect to.
+In case of joint holders holding the Equity Shares
+of the Company, all the joint holders are required
+to intimate to the Company in the prescribed form
+their decision of waiving / forgoing their right to
+receive the dividend from the Company.
+The Equity Shareholder(s) who wish to waive/
+forgo the right to receive the dividend for any
+year shall inform the Company in the form
+prescribed by the Board of Directors of the
+Company only.
+A Shareholder can waive / forgo the right to
+receive the dividend (either final and / or interim)
+to which he is entitled, on some or all the Equity
+Shares held by him in the Company as on the
+Record Date / Book-closure Date fixed for
+determining the names of Members entitled
+for such dividend. However, the Shareholder
+cannot waive / forgo the right to receive the
+dividend (either final and / or interim) for a part of
+percentage of dividend on a share(s).
+III.
+II.
+I.
+V.
+IX. These Rules can be amended by the Board of
+Directors of the Company from time to time as
+may be required.
+17. The members of erstwhile Tamilnadu Dadha Pharmaceuticals Limited; erstwhile Gujarat Lyka Organics Limited;
+erstwhile Phlox Pharmaceuticals Limited and erstwhile Ranbaxy Laboratories Limited; who have not yet sent their
+share certificates of erstwhile Tamilnadu Dadha Pharmaceuticals Limited; erstwhile Gujarat Lyka Organics Limited;
+erstwhile Phlox Pharmaceuticals Limited and erstwhile Ranbaxy Laboratories Limited, respectively for exchange with
+the share certificates of Sun Pharmaceutical Industries Limited, are requested to do so at the earliest, provided their
+shares are not already transferred to IEPF, since share certificates of the erstwhile Tamilnadu Dadha Pharmaceuticals
+Limited; erstwhile Gujarat Lyka Organics Limited; erstwhile Phlox Pharmaceuticals Limited and erstwhile Ranbaxy
+Laboratories Limited are no longer tradable / valid.
+18. The members may be aware that the equity shares of the Company had been subdivided from 1 (One) equity share of
+*5/- (Rupees Five Only) each to 5 (Five) equity shares of *1/- each on November 29, 2010 based on the Record Date
+of November 26, 2010. The members who have yet not sent their share certificates of *5/- (Rupees Five Only) each
+of the Company for exchange with new equity shares of 1/- each are requested to send the same to the Company's
+RTA, provided their shares are not already transferred to IEPF, since the old share certificates of ₹5/- (Rupees Five
+Only) each are no longer tradable.
+Rate specified in the
+Certificate
+3. Availability of lower/nil tax deduction
+20%
+No PAN/Valid PAN not updated in the
+Company's Register of Members
+2.
+Valid PAN updated in the Company's Register 10%
+of Members
+1.
+Documents Required (if any)
+Rate of Deduction of Tax
+at Source
+No.
+Particulars
+Sr.
+Tax Deductible at Source for resident shareholders
+i)
+a)
+RESIDENT SHAREHOLDERS
+19. Pursuant to the amendments introduced by the Finance Act, 2020, the dividend income will be taxable in the hands
+of the shareholders w.e.f. April 1, 2020 and the Company is required to deduct tax at source from dividend paid
+to shareholders at the prescribed rates. However, no tax will be deducted on payment of dividend to the resident
+individual shareholders, if the total dividend paid does not exceed 5,000/-. The rate of tax deducted at source will
+vary depending on the residential status of the shareholder and documents registered with the Company.
+No document required (if no exemption is
+sought).
+Sun Pharmaceutical Industries Limited
+Notice
+Sun Pharma Laboratories Limited
+285
+Sun Pharmaceutical Industries Limited
+CARE
+Particulars
+Age
+Brief resume of the Director including
+nature of expertise in specific functional
+areas:
+Date of First appointment on the Board:
+Directorship held in other companies
+Mr. Kalyanasundaram Subramanian
+67 Years
+Mr. Kal joined Sun Pharmaceutical Industries Limited (SPIL) in January 2010 after 22
+years with GSK in various parts of the world. Mr. Kal is a Chemistry graduate and a
+Chartered Accountant from India with 42 years of experience, of which some 35 years in
+the pharmaceutical industry. Mr. Kal's career in Pharma industry began when he joined
+Burroughs Wellcome, in New Zealand as Commercial Advisor in 1988. His long and
+varied career with Burroughs Wellcome in New Zealand which was acquired by Glaxo
+to become GlaxoWellcome and finally GlaxoSmithKline, includes assignments as Vice
+President, head of Classic Brands business of Emerging Markets; Area Director South
+Asia & Managing Director, GSK India; Managing Director - GlaxoWellcome, Singapore
+(Singapore, Indochina & Myanmar). Commercial Director - Burroughs Wellcome, New
+Zealand.
+In 2010, Mr. Kal Joined SPIL as the Chief Executive Officer to manage India and
+Emerging Markets (EM) and was a board member of the Company. Mr. Kalyansundaram
+Subramanian spearheaded opening of SPIL operations in few important markets such
+as Japan, MENA. In 2012, Mr. Kal moved to USA to assume responsibility for Taro
+operations in North America.
+In Jan 2017, Mr. Kal moved back to India to manage India and EM regions of SPIL, and
+then Mr Kal moved to become the Whole-time Director, Corporate Development and he
+has also assumed responsibility for Japan and China.
+February 14, 2017
+Sun Pharma Laboratories Limited
+(excluding foreign companies & section 8 Sun Pharma Distributors Limited
+companies):
+Membership / Chairmanships of
+Committees of other public Companies:
+Inter-se Relationship between Directors:
+No. of Shares held in the Company
+(singly or jointly as first holder) as on
+March 31, 2021:
+Trikaal Mediinfotech Private Limited
+AIOCD Pharmasofttech AWACS Private Limited
+Pharmarack Technologies Private Limited
+Membership / Chairmanships of
+Committees of other public Companies:
+Date of First appointment on the Board:
+Directorship held in other companies
+(excluding foreign companies & section 8 Sun Pharmaceutical Medicare Limited
+companies):
+Sun Pharma Laboratories Limited
+Mr. Sailesh T. Desai is a science graduate from Kolkata University and is a successful
+entrepreneur with more than 35 years of wide industrial experience including more than
+30 years in the pharmaceutical industry. Mr. Desai has extensive and comprehensive
+corporate affairs experience, being involved in the turnaround at Milmet prior to Sun
+Pharma's acquisition, as well as in the early stages of the company's growth.
+March 25, 1999
+67 Years
+Mr. Sailesh T. Desai
+Annual Report 2020-21
+areas:
+Age
+Particulars
+Nil
+1) Corporate Social Responsibility Committee - Chairman
+None
+1) Corporate Social Responsibility Committee - Member
+Sun Pharma Distributors Limited
+Sun Pharma Laboratories Limited
+Brief resume of the Director including
+nature of expertise in specific functional
+Inter-se Relationship between Directors:
+No. of Shares held in the Company
+(singly or jointly as first holder) as on
+March 31, 2021:
+Mr. Dilip S. Shanghvi is Brother-in-law of Mr. Sudhir V. Valia, Director of the Company
+230,285,690 Equity Shares
+2) Fund Management Committee - Member
+The draft letter of appointment of Dr. Pawan Goenka and
+Ms. Rama Bijapurkar, setting out the terms and conditions
+of appointment is being made available for inspection by
+any member as detailed in point no. 13 of Notes to Notice
+of this 29th Annual General Meeting.
+The Board of Directors recommend the resolutions as set
+out in item no. 8 and 9 of this Notice for approval of the
+members as Ordinary Resolutions.
+None of the Directors or Key Managerial Personnel of the
+Company and their relatives, other than Dr. Pawan Goenka
+and Mr. Rama Bijapurkar and their relatives, for their
+respective resolutions relating to their appointment, are in
+any way concerned or interested in the resolutions as set
+out at Item no. 8 and 9 of this Notice
+Item No. 10:
+With the enhanced role of Directors under the Act and the
+SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015, coupled with the size, complexity
+and global operations of the Company, the role and
+responsibilities of the Non-executive Directors, including
+Independent Directors, has become more onerous,
+requiring greater time commitments, attention and a
+higher level of oversight. In view of the above, the Board of
+Directors recommended passing of an enabling resolution
+for the payment of commission to the Non-Executive
+Directors of the Company (other than the Managing
+Director and/or Whole-time Directors of the Company) of
+the Company not exceeding in aggregate 1.00% of the net
+profits of the Company to be determined by the Board of
+Directors for each such Director for each financial year for
+a period of five years commencing from the financial year
+ending on March 31, 2022 up to and including financial year
+ending on March 31, 2026 to be calculated in accordance
+with the provisions of Section 198 of the Companies Act,
+2013 and distributed between such Directors in such a
+manner as the Board of Directors may from time to time
+determine in terms of Section 197 of the Act, and computed
+in accordance with the provisions of Section 198 of the
+Act or such other percentage as may be specified from
+time to time. Regulation 17(6) of the Listing Regulations
+authorises the Board of Directors to recommend all fees
+and compensation, if any, paid to Non-Executive Directors
+and the same would require approval of members in general
+meeting.
+In the event of loss or absence/ inadequacy of profits,
+the maximum amount of commission payable to the
+Non-executive Directors shall be calculated in accordance
+with Schedule V of the Companies Act, 2013.
+The above commission shall be in addition to sitting fees
+payable to the Director(s) for attending meetings of the
+Board/Committees or for any other purpose whatsoever
+as may be decided by the Board and reimbursement of
+expenses for participation in the Board and other meetings.
+The Board of Directors recommends the passing of the
+resolution at Item No. 10 of the Notice convening the
+Meeting for the approval of the Members as Ordinary
+Resolution.
+All the Non-Executive Directors of the Company, i.e
+Mr. Israel Makov, Mr. Gautam Doshi, Ms. Rekha Sethi,
+Mr. Sudhir V. Valia, Mr. Vivek Chaand Sehgal, Mr. Pawan
+Goenka and Ms. Rama Bijapurkar and their respective
+relatives are deemed to be concerned or interested in
+this resolution. Mr. Dilip S. Shanghvi, Managing Director
+of the Company, being the brother in law of Mr. Sudhir V.
+Valia, is also deemed to be concerned or interested in this
+resolution.
+284
+Notice
+PROFILE OF DIRECTORS
+(Details of Directors proposed to be appointed/ reappointed)
+As required under Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing
+Regulations") and as required under Secretarial Standard on General Meetings issued by the Institute of Company
+Secretaries of India (SS - 2), the particulars of Directors who are proposed to be appointed/ reappointed/whose terms of
+remuneration are being fixed at this 29th Annual General Meeting, are given below:
+The details of Board and Committee Meetings attended by these Directors during the year 2020-21 are stated in the
+Corporate Governance Report which forms part of this Annual Report.
+The details of remuneration, wherever applicable, are provided in the respective resolution(s).
+Particulars
+Age
+Brief resume of the Director including
+nature of expertise in specific functional
+1) Corporate Social Responsibility Committee - Member;
+Sun Pharma Advanced Research Company Limited -
+Aditya Clean Power Ventures Private Limited
+Alfa Infraprop Private Limited
+Inter-se Relationship between Directors:
+No. of Shares held in the Company
+(singly or jointly as first holder) as on
+March 31, 2021:
+Membership / Chairmanships of
+Committees of other public Companies:
+3) Securities Allotment Committee - Member
+Sun Pharma Advanced Research Company Limited
+He has also been conferred with Honorary Doctorate, by Tel Aviv University, Israel.
+March 1, 1993
+Mr. Shanghvi was conferred with the prestigious 'Padma Shri' award by the Hon'ble
+President of India in the year 2016. He is also recipient of several awards.
+Mr. Dilip S. Shanghvi is a graduate in commerce from the Kolkata University. He is the
+Managing Director of the Company and Chairman of Sun Pharma Advanced Research
+Company Ltd, He is the founding partner of Sun Pharmaceutical Industries, a firm which
+was later converted into Sun Pharmaceutical Industries Limited (SPIL) in 1993. Under
+his leadership, SPIL has recorded an all-round growth in business. He has extensive
+experience in the pharmaceutical industry. As the promoter of SPIL, he has been
+actively involved in international pharmaceutical markets, business strategy, business
+development and research and development functions in the Company.
+66 Years
+Mr. Dilip S. Shanghvi
+areas:
+Date of First appointment on the Board:
+Directorship held in other companies
+(excluding foreign companies & section 8 Sun Petrochemicals Private Limited
+companies):
+Sun Pharma Distributors Limited
+Universal Enterprises Private Limited
+1) Nomination and Remuneration Committee - Member
+Sun Pharma Distributors Limited
+Ms. Rama Bijapurkar is a recognised thought leader on business-market strategy and
+India's consumer economy. She has an independent management consulting practice,
+works across sectors, and describes her domain as bringing market focus to business
+strategy. She is a Professor of Management Practice at Indian Institute of Management,
+Ahmedabad, and co-founder of People Research on India's Consumer Economy, a not-
+for-profit think tank and fact tank, on India's economy and citizen environment for use in
+business strategy and public policy.
+Ms. Bijapurkar is amongst India's most experienced independent board directors and has
+served on the boards of several of India's blue chip companies and public institutions.
+Ms. Bijapurkar is a dominant voice in the Indian media on business and policy issues, and
+is the author of hallmark books on Consumer India "We are like that only: Understanding
+the Logic of Consumer India", "A Never-Before World: Tracking the Evolution of
+Consumer India" (Penguin) and "Customer in the Boardroom - crafting customer based
+business strategy" (Sage)
+Ms. Bijapurkar holds a BSc (Hons) degree in Physics from Delhi University and a post
+graduate diploma in management from the Indian Institute of Management, Ahmedabad.
+Her over four decades of work experience in strategy consulting and market research
+includes her own consulting practice, and employment with McKinsey & Company,
+MARG (now Nielsen India), Mode Services (now TNS India).
+May 21, 2021
+ICICI Bank Limited
+(excluding foreign companies & section 8 Mahindra & Mahindra Financial Services Limited
+companies):
+Membership / Chairmanships of
+Committees of other public Companies:
+Inter-se Relationship between Directors:
+No. of Shares held in the Company
+(singly or jointly as first holder) as on
+March 31, 2021:
+Emami Limited
+Nestle India Limited
+VST Industries Limited
+Cummins India Limited
+ICICI Bank Limited
+1) Board Governance, Remuneration and Nomination Committee - Member
+2) Corporate Social Responsibility Committee - Member
+3) Customer Service Committee - Chairperson
+Mahindra & Mahindra Financial Services Limited
+1) Audit Committee - Member
+2) Stakeholders' Relationship Committee - Chairperson
+3) Risk Management Committee - Member
+288
+Nil
+3) Corporate Social Responsibility Committee - Member
+None
+2) Risk Management Committee - Member
+1) Stakeholders Relationship Committee - Member
+Cummins India Limited
+Ms. Rama Bijapurkar
+64 Years
+6) Strategy Committee - Member
+4) Risk Management Committee - Member
+3) Nomination and Remuneration Committee - Chairperson
+2) Stakeholders Relationship Committee - Chairperson
+1) Audit Committee - Member
+1) Stakeholders Relationship Committee - Chairperson
+2) Corporate Social Responsibility Committee - Member
+VST Industries Limited
+4) Corporate Social Responsibility Committee - Member
+Nestle India Limited
+5) Corporate Social Responsibility Committee - Member
+Directorship held in other companies
+Date of First appointment on the Board:
+areas:
+Dr. Goenka is past President of SIAM, of the Society of Automotive Engineers India,
+the ARAI Governing Council, and also served as a Board Member of National Skills
+Development Corporation (NSDC). He is a National Council Member and the Chairman
+of the National Mission on AtmaNirbhar Bharat of Confederation of Indian Industries
+(CII). He is currently serving as the Chairman of the Board of Governors of IIT Madras
+and IIT Bombay. He is the Chairperson of the Steering Committee for Advancing Local
+value-add and Exports (SCALE), an initiative under the Ministry of Commerce & Industry,
+Department for Promotion of Industry and Internal Trade (Government of India).
+May 21, 2021
+Dr. Goenka has received several awards during his tenure in USA, such as the
+Extraordinary Accomplishment Award and the Charles L. McCuen Award from General
+Motors and the Burt L. Newkirk Award from ASME. He received the Distinguished
+Alumni Award from IIT Kanpur in 2004 and was also conferred with the Doctor of
+Science (honoris causa) in 2015. He is a Fellow of SAE International and of The Indian
+National Academy of Engineers and a member of National Academy of Engineers, USA.
+Dr. Pawan Goenka is a recipient of the Automotive Man of the Year award by NDTV Car
+& Bike, Autocar Professional's Man of the Year, and the CV Man of the Year by the Apollo
+CV Awards. Dr. Goenka has been awarded the 2016 FISITA Medal of Honour, which is
+bestowed for his 'particularly distinguished achievement and leadership in the global
+automotive industry' and is the first Indian to receive this prestigious recognition. He was
+presented with the Lifetime Achievement Award by Car India & Bike India in February
+2020, the Param Shreshth Award by Car & Bike and the Lifetime Achievement Award by
+Autocar India, both in March 2021, for his leadership and contribution to the Indian Auto
+Industry.
+Dr. Goenka served on the boards of several Mahindra Group Companies both domestic
+and International. He served as the Chairman of Mahindra Vehicle Manufacturers
+Limited, Mahindra Electric Mobility Limited, SsangYong Motor Company, Mahindra
+Racing UK Limited, Mahindra Automotive North America Inc., Mahindra USA, and
+Automobili Pininfarina GmbH. Dr. Goenka continues as the Non-Executive Chairman of
+Mahindra Agri Solutions Ltd (MASL).
+Dr. Pawan Goenka earned his B. Tech. in Mechanical Engineering from IIT, Kanpur and
+Ph.D. from Cornell University, U.S.A. He is also a Graduate of Advanced Management
+Program from Harvard Business School. He worked at General Motors R&D Centre in
+Detroit, U.S.A. from 1979 to 1993. Thereafter, he joined Mahindra & Mahindra Ltd., as
+General Manager (R&D). During his R&D tenure he led the development of the Scorpio
+SUV. He was appointed COO (Automotive Sector) in April 2003, President (Automotive
+Sector) in September 2005, President (Automotive & Farm Equipment Sectors) in April
+2010. Dr. Pawan Goenka was appointed Executive Director and President (AFS) on the
+Board of Mahindra & Mahindra Ltd. on 23rd September 2013. He retired from Mahindra
+as Managing Director and CEO on April 01, 2021. Dr. Goenka is credited with building a
+strong R&D and a wide product portfolio for Mahindra and is also widely recognised as a
+thought leader and statesman of the India Auto Industry.
+67 Years
+Dr. Pawan Goenka
+Mahindra Agri Solutions Limited
+areas:
+Age
+Particulars
+Notice
+286
+2,485,747 Equity Shares
+1) Corporate Social Responsibility Committee - Member
+None
+Brief resume of the Director including
+nature of expertise in specific functional
+The Company has also received notices pursuant to Section
+160 of the Act from members of the Company proposing
+the candidature for appointment of Dr. Pawan Goenka
+and Ms. Rama Bijapurkar as Independent Directors of the
+Company.
+Date of First appointment on the Board:
+Directorship held in other companies
+(excluding foreign companies & section 8 Bosch Limited
+companies):
+Inter-se Relationship between Directors:
+No. of Shares held in the Company
+(singly or jointly as first holder) as on
+March 31, 2021:
+Brief resume of the Director including
+nature of expertise in specific functional
+Age
+Particulars
+Sun Pharmaceutical Industries Limited
+CARE
+287
+Annual Report 2020-21
+Membership / Chairmanships of
+Committees of other public Companies:
+Nil
+2) Nomination and Remuneration Committee Member;
+1) Audit Committee - Member;
+Bosch Limited
+1) Risk Management Committee - Member
+Mahindra Agri Solutions Limited
+Sylvan Realty Private Limited
+3) Corporate Social Responsibility Committee - Member;
+4) Stakeholder's Relationship Committee - Chairman
+None
+The Company has received declaration from Dr. Pawan
+Goenka and Ms. Rama Bijapurkar, stating that they meet the
+criteria of Independence as prescribed under sub-section (6)
+of Section 149 of the Act and SEBI (Listing Obligations and
+Disclosure Requirements) Regulations, 2015. In the opinion
+of the Board, they fulfil the conditions specified in the said
+Act and the rules made thereunder for appointment as
+Independent Directors of the Company and that they are
+independent of the management.
+4) Risk Management Committee - Chairman
+Accordingly, the approval of members is being sought for
+appointment of Dr. Pawan Goenka and Ms. Rama Bijapurkar
+as Independent Directors, for a term of 5 (five) years i.e
+from May 21, 2021 upto May 20, 2026 for each, and during
+their tenure of appointment they shall not be liable to retire
+by rotation.
+Annual Report 2020-21
+enter their login password in the new password
+field. Kindly note that this password is to be
+also used by the demat holders for voting for
+resolutions of any other company on which they
+are eligible to vote, provided that company opts
+for e-voting through CDSL platform. It is strongly
+recommended not to share your password with
+279
+Sun Pharmaceutical Industries Limited
+CARE
+any other person and take utmost care to keep
+your password confidential.
+(viii) For shareholders holding shares in physical form,
+the details can be used only for e-voting on the
+resolutions contained in this Notice.
+(ix) Click on the EVSN no. 210720008 for Sun
+Pharmaceutical Industries Limited.
+(x) On the voting page, you will see "RESOLUTION
+DESCRIPTION" and against the same the option
+"YES/NO" for voting. Select the option YES or NO
+as desired. The option YES implies that you assent
+to the Resolution and option NO implies that you
+dissent to the Resolution.
+(xi) Click on the "RESOLUTIONS FILE LINK" if you
+wish to view the entire Resolution details.
+(xii) After selecting the resolution you have decided
+to vote on, click on "SUBMIT". A confirmation box
+will be displayed. If you wish to confirm your vote,
+click on "OK", else to change your vote, click on
+"CANCEL" and accordingly modify your vote.
+(xiii) Once you "CONFIRM" your vote on the
+• A scanned copy of the Board Resolution and
+Power of Attorney (POA) which they have
+issued in favour of the Custodian, if any, should
+be uploaded in PDF format in the system for
+the scrutiniser to verify the same.
+• Alternatively Non Individual shareholders
+are required to send the relevant Board
+Resolution/ Authority letter etc., to the
+Scrutiniser and to the Company at the e-mail
+address viz; secretarial@sunpharma.com
+(designated e-mail address by company), if they
+have voted from individual tab & not uploaded
+same in the CDSL e-voting system for the
+scrutiniser to verify the same.
+Process for shareholders to register / update their
+e-mail addresses/ mobile nos. with the depositories/
+RTA:
+-
+1. For Physical shareholders – please provide
+necessary details like Folio No., Name of
+shareholder, scanned copy of the share certificate
+(front and back), PAN (self attested scanned copy
+of PAN card), AADHAR (self attested scanned
+copy of Aadhar Card) by e-mail to Company/RTA
+e-mail id.
+resolution, you will not be allowed to modify your
+vote.
+2.
+The procedure for attending meeting & e-voting
+on the day of the AGM is same as the instructions
+mentioned above for e-voting.
+1.
+(xvii) Instructions for shareholders attending the 29th AGM
+through VC/OAVM & E-voting during the 29th AGM
+are as under:-
+For Individual Demat shareholders - Please
+update your e-mail id & mobile no. with your
+respective Depository Participant (DP) which
+is mandatory while e-Voting & joining virtual
+meetings through Depository.
+For Demat shareholders - Please update your
+e-mail id & mobile no. with your respective
+Depository Participant (DP).
+Dr. Pawan Goenka and Ms. Rama Bijapurkar, shall be
+entitled to sitting fees for attending the meeting of the
+Board and committees at the rate as is paid to other
+independent and non-executive directors of the Company
+and commission, if any, as may be decided by the Board
+from time to time.
+• The list of accounts linked in the login should
+be mailed to helpdesk.evoting@cdslindia.com
+and on approval of the accounts they would be
+able to cast their vote.
+⚫ Non-Individual shareholders (i.e. other than
+Individuals, HUF, NRI etc.) and Custodians are
+required to log on to www.evotingindia.com
+and register themselves in the "Corporates"
+module.
+(xvi) Additional Facility for Non - Individual
+Shareholders and Custodians - For Remote
+Voting only.
+(xv) If a demat account holder has forgotten the login
+password then Enter the User ID and the image
+verification code and click on Forgot Password &
+enter the details as prompted by the system.
+3.
+(xiv) You can also take a print of the votes cast by
+clicking on "Click here to print" option on the
+Voting page.
+2.
+• A scanned copy of the Registration Form
+bearing the stamp and sign of the entity should
+be e-mailed to helpdesk.evoting@cdslindia.com.
+• After receiving the login details a Compliance
+User should be created using the admin login
+and password. The Compliance User would be
+able to link the account(s) for which they wish
+to vote on.
+(vii) Shareholders holding shares in physical form
+(vi) After entering these details appropriately, click on
+"SUBMIT" tab.
+.
+Members facing any technical issue in login can contact NSDL helpdesk by
+sending a request at evoting@nsdl.co.in or call at toll free no.: 1800 1020 990
+and 1800 22 44 30
+Members facing any technical issue in login can contact CDSL helpdesk
+by sending a request at helpdesk.evoting@cdslindia.com or contact at
+022-23058738 and 22-23058542-43.
+Helpdesk details
+Individual Shareholders holding securities in
+Demat mode with NSDL
+Individual Shareholders holding securities in
+Demat mode with CDSL
+Login type
+(v) Login method for e-voting and joining virtual meetings for Physical shareholders and shareholders other than
+individual holding in Demat form.
+Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login
+through Depository i.e. CDSL and NSDL
+1) You can also login using the login credentials of your demat account through your Depository
+Participant registered with NSDL/CDSL for e-voting facility. After Successful login, you will be able
+to see e-voting option. Once you click on e-voting option, you will be redirected to NSDL/CDSL
+Depository site after successful authentication, wherein you can see e-voting feature. Click on
+company name - Sun Pharmaceutical Industries Limited or e-voting service provider name - CDSL,
+and you will be redirected to CDSL website for casting your vote during the remote e-voting period
+or joining virtual meeting & voting during the meeting.
+Login Method
+their Depository
+Participants
+mode) login through
+Shareholders (holding
+securities in demat
+Type of shareholders
+Individual
+Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget
+Password option available at abovementioned website.
+The link for VC/OAVM to attend meeting will
+be available where the EVSN of Company will
+be displayed after successful login as per the
+instructions mentioned above for e-voting.
+• The shareholders should log on to the e-voting website www.evotingindia.com.
+• Now enter your User ID
+Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as
+recorded in your demat account or in the company records in order to login.
+If both the details are not recorded with the depository or company please
+enter the member id / folio number in the Dividend Bank details field as
+mentioned in instruction (v).
+For Physical shareholders and shareholders other than individual holding shares in Demat.
+Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department
+(Applicable for both demat shareholders as well as physical shareholders)
+Shareholders who have not updated their PAN with the Company/
+Depository Participant are requested to use the sequence number/ e-voting
+code sent by Company/RTA or contact Company/RTA.
+OR Date of Birth (DOB)
+Dividend Bank Details
+PAN
+• If you are a first time user follow the steps given below:
+• Click on "Shareholders" module.
+• If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier
+e-voting of any company, then your existing password is to be used.
+Shareholders holding shares in Physical Form should enter Folio Number registered with the Company.
+C.
+For NSDL: 8 Character DP ID followed by 8 Digits Client ID
+b.
+For CDSL: 16 digits beneficiary ID
+a.
+• Next enter the Image Verification as displayed and Click on Login
+3.
+will then directly reach the Company selection
+screen. However, shareholders holding shares in
+demat form will now reach 'Password Creation'
+menu wherein they are required to mandatorily
+Shareholders who have voted through Remote
+e-Voting will be eligible to attend the meeting.
+However, they will not be eligible to vote at the
+29th AGM.
+The copy of the draft revised agreement with respect to the
+term of remuneration, to be entered into with Mr. Sailesh T.
+Desai is available for inspection by any member as detailed
+in point no. 13 of Notes to Notice of this 29th Annual
+General Meeting.
+The additional information as required by Schedule V to
+the Companies Act, 2013 is provided under the heading
+"Statement of Information for the Members pursuant to
+Section II of Part II of Schedule V to the Companies Act,
+2013" with this Notice.
+It may be noted that the main terms and conditions of
+Mr. Sailesh T. Desai's appointment, other than the term
+of remuneration as stated aforesaid, shall remain the
+same as per the resolution passed by the members at
+the 26th Annual General Meeting of the Company held
+on September 26, 2018 and the Agreement between the
+Company and Mr. Sailesh T. Desai.
+Members' approval is therefore sought for maximum
+remuneration to be paid to Mr. Sailesh T. Desai, as
+stated aforesaid and detailed in the resolution, for the
+remaining period of his term of appointment, that is,
+from April 1, 2022 to March 31, 2024, including the
+Minimum Remuneration to be paid to him in event of loss
+or inadequacy of profits in any financial year during the
+aforesaid period, as recommended by the Nomination and
+Remuneration Committee and approved by the Board of
+Directors.
+Pursuant to provisions of Section 197 read with Schedule V
+of the Act, in case the Company has no profit/ inadequate
+profits in any financial year during the tenure of the
+Director, the minimum remuneration shall be paid to such
+Director, as may be decided by the Board of Directors, if
+the approval of members is obtained by way of Special
+Resolution. The net profit of the Company is not inadequate
+presently. However for any reason in future years, the
+profits are inadequate or are absent in terms of the Act
+during the term of Mr. Sailesh T. Desai, it is proposed to
+seek members' approval by Special Resolution, to enable
+the Company to pay Minimum Remuneration as per
+the proposed resolution to Mr. Sailesh T. Desai, for his
+remaining tenure as the Whole-time Director.
+Notice
+Mr. Sailesh T. Desai has more than 35 years of industrial
+experience, including more than 30 years in the
+pharmaceutical industry. His brief profile is provided under
+heading "Profile of Directors" forming part of this Notice.
+282
+Further, the Members, by way of a special resolution at
+the 26th AGM, had approved the maximum remuneration
+to be paid to Mr. Sailesh T. Desai, Whole-time Director for
+a period of 3 years with effect from April 1, 2019 to
+March 31, 2022, including the remuneration to be paid to
+him in event of loss or inadequacy of profits in
+any financial
+year during the aforesaid period, as recommended by the
+Nomination and Remuneration Committee and approved
+by the Board of Directors. It is now proposed to obtain
+approval of the Members for remuneration to be paid to
+Mr. Sailesh T. Desai for further period of two years i.e. from
+April 1, 2022 to March 31, 2024, which is the remaining
+period of his present term of appointment.
+Mr. Sailesh T. Desai (DIN: 00005443) was re-appointed as
+Whole-time Director by way of a special resolution passed
+by the members at the 26th Annual General Meeting of
+the Company held on September 26, 2018 for a period of
+5 (five) years effective from April 1, 2019 upto March 31,
+2024.
+Item No. 7:
+None of the Directors or Key Managerial Personnel of the
+Company and their relatives, other than Mr. Kal to whom
+this resolution pertains and his relatives, are in any way
+concerned or interested in the Resolution as set out at Item
+no. 6 of this Notice.
+The Board recommends the Resolution as set out at Item
+no. 6 of the Notice for approval of the Members as a Special
+Resolution.
+Mr. Kal is having rich experience in pharmaceutical industry
+and has successfully contributed towards the growth of
+the Company. His brief profile is provided under heading
+"Profile of Directors" forming part of this Notice.
+The maximum remuneration to Mr. Sailesh T. Desai,
+approved by the members at the 26th AGM for the
+period from April 1, 2019 to March 31, 2022, was 1.80
+crores per annum, within which limit the Nomination and
+Remuneration Committee and the Board approve the
+remuneration to be paid to Mr. Sailesh T. Desai. The present
+actual remuneration paid/ payable to Mr. Sailesh T. Desai
+for the year 2020-21 is 1.68 crores per annum. Therefore
+the maximum limit of 2 crores per annum is proposed to
+the members as his maximum remuneration for remaining
+period of his present term of appointment i.e. from April
+1, 2022 to March 31, 2024. This maximum remuneration
+of 2 crores per annum has also been recommended and
+approved by the Nomination and Remuneration Committee
+and the Board of Directors of the Company, as detailed in
+Resolution set out in Item no. 7 of this Notice.
+The copy of the draft agreement to be entered into with
+Mr. Kal is available for inspection by any member as detailed
+in point no. 13 of Notes to Notice of this 29th Annual
+General Meeting.
+The Board recommends the Resolution as set out at Item
+no. 7 of the Notice for approval of the Members as a Special
+Resolution.
+Item No. 8 & 9:
+4.
+Pursuant to Sections 149, 152 and Schedule IV of the Act
+read with Companies (Appointment and Qualification of
+Directors) Rules, 2014, the Nomination and Remuneration
+Committee and the Board of Directors recommend to the
+members for their approval, the appointment of Dr. Pawan
+Goenka and Ms. Rama Bijapurkar as Independent Directors,
+for a term of 5 (five) years for each of them, commencing
+from the date of their appointment by the Board i.e from
+May 21, 2021 upto May 20, 2026, for both.
+of India, are provided under heading "Profile of Directors"
+forming part of this Notice.
+CARE
+Sun Pharmaceutical Industries Limited
+283
+None of the Directors or Key Managerial Personnel of the
+Company and their relatives, other than Mr. Sailesh T. Desai,
+to whom this resolution pertains and his relatives, are in any
+way concerned or interested in the Resolution as set out at
+Item no. 7 of this Notice.
+Annual Report 2020-21
+Ms. Rama Bijapurkar holds a BSc (Hons) degree in Physics
+from Delhi University and a post graduate diploma in
+management from the Indian Institute of Management,
+Ahmedabad.
+Dr. Pawan Goenka earned his B. Tech. in Mechanical
+Engineering from IIT, Kanpur and Ph.D. from Cornell
+University, U.S.A. He is also a Graduate of Advanced
+Management Program from Harvard Business School.
+It may be noted that Ms. Rekha Sethi, who is presently
+an Independent Woman Director of the Company, would
+be retiring as a Director at the ensuing 29th AGM, on
+completing the 2nd term of her appointment with the
+Company and therefore there would be need to induct an
+Independent Woman Director in accordance with provisions
+of the Companies Act, 2013 and SEBI (Listing Obligations
+and Disclosure Requirements) Regulations, 2015.
+In order to further increase the Board strength, to diversify
+the Board and to help bring in diverse thoughts and ideas at
+the Board level and thereby ensure that the board achieves
+better decision making and governing abilities, with the
+diversity of thought, experience, knowledge, perspective
+and gender in the board of directors, the Nomination and
+Remuneration Committee, and the Board of Directors
+recommend their appointment as Independent Directors of
+the Company by the members.
+Ms. Rama Bijapurkar (DIN: 00001835), was also appointed
+as an Additional Independent Director with effect from
+May 21, 2021, in terms of Section 161(1) of the Act, by the
+Board of Directors of the Company on the recommendation
+of Nomination and Remuneration Committee. Pursuant to
+the provisions of the aforesaid section of the Act, Ms. Rama
+Bijapurkar holds office upto to the conclusion of this 29th
+Annual General Meeting.
+Dr. Pawan Goenka (DIN: 00254502) was appointed as
+an Additional Independent Director with effect from
+May 21, 2021, in terms of Section 161(1) of the Companies
+Act, 2013 ("Act"), by the Board of Directors of the Company
+on the recommendation of Nomination and Remuneration
+Committee. Pursuant to the provisions of the aforesaid
+section of the Act, Dr. Pawan Goenka holds office upto to
+the conclusion of this 29th Annual General Meeting.
+A brief profile and other particulars of Dr. Pawan Goenka
+and Ms. Rama Bijapurkar, as required under the provisions
+of SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 and Secretarial Standards on General
+Meetings issued by the Institute of Company Secretaries
+This explanatory statement and the Resolution set out at
+Item No. 6 of this Notice may also be read and treated as
+disclosure in compliance with the requirements of Section
+190 of the Companies Act, 2013.
+This explanatory statement and the Resolution set out at
+Item No. 7 of this Notice may also be read and treated as
+disclosure in compliance with the requirements of Section
+190 of the Companies Act, 2013.
+The additional information as required by Schedule V to
+the Companies Act, 2013 is provided under the heading
+"Statement of Information for the Members pursuant to
+Section II of Part II of Schedule V to the Companies Act,
+2013" with this Notice.
+EXPLANATORY STATEMENT PURSUANT TO SECTION
+102 OF THE COMPANIES ACT, 2013
+31. The Scrutiniser will, immediately after the conclusion
+of voting at the 29th AGM, start scrutinising the
+votes cast at the Meeting along with remote e-voting
+and prepare a consolidated Scrutiniser's Report and
+submit thereafter to the Chairman of the Meeting
+or any person authorised by him in writing. The
+voting result declared along with the consolidated
+Scrutiniser's Report will be placed on the Company's
+website at www.sunpharma.com and on the website
+of CDSL at www.evotingindia.com, as well as displayed
+on the notice board at the Registered Office and
+Corporate Office of the Company, within 48 hours
+of the conclusion of the Meeting. The Company will
+simultaneously forward the voting results to BSE
+Limited and National Stock Exchange of India Limited,
+where the shares of the Company are listed.
+All grievances connected with the facility for
+voting by electronic means may be addressed
+to Mr. Rakesh Dalvi, Manager, (CDSL) Central
+Depository Services (India) Limited, A Wing, 25th
+Floor, Marathon Futurex, Mafatlal Mill Compounds,
+NM Joshi Marg, Lower Parel (East), Mumbai -
+400013 or send an e-mail to helpdesk.evoting@
+cdslindia.com or call on 022-23058542/43.
+(xviii) In case you have any queries or issues regarding
+attending AGM & e-voting from the CDSL
+e-voting system, you may write an e-mail to
+helpdesk.evoting@cdslindia.com or contact
+022-23058738 and 022-23058542/43.
+If any votes are cast by the shareholders through
+the e-voting available during the AGM and if
+the same shareholders have not participated in
+the meeting through VC/OAVM facility, then
+the votes cast by such shareholders shall be
+considered invalid as the facility of e-voting during
+the meeting is available only to the shareholders
+attending the meeting.
+Only those shareholders, who are present in the
+AGM through VC/OAVM facility and have not
+casted their vote on the Resolutions through
+remote e-voting and are otherwise not barred
+from doing so, shall be eligible to vote through
+e-voting system available during the AGM.
+As required under Section 102 of the Companies Act,
+2013 ("the Act"), the following Explanatory Statement sets
+out material facts relating to the Special Business as set
+out at Item Nos. 5 to 10 of the accompanying Notice dated
+May 27, 2021.
+Please note that participants connecting from
+mobile devices or tablets or through laptop
+connecting via mobile hotspot may experience
+audio/video loss due to fluctuation in their
+respective network. It is therefore recommended
+to use stable Wi-Fi or LAN connection to mitigate
+any kind of aforesaid glitches.
+7.
+6.
+Notice
+280
+Shareholders will be required to allow Camera
+and use Internet with a good speed to avoid any
+disturbance during the meeting.
+5.
+8.
+Item No. 5:
+Shareholders are encouraged to join the Meeting
+through Laptops / IPads for better experience.
+Sun Pharmaceutical Industries Limited
+CARE
+Members' approval is therefore sought for his re-
+appointment as Whole-time Director and maximum
+remuneration to be paid to Mr. Kal, as stated aforesaid
+and detailed in the resolution, for a further period of three
+years, that is, from February 14, 2021 upto February 13,
+2023, including the Minimum Remuneration to be paid to
+him in event of loss or inadequacy of profits in any financial
+year during the aforesaid period, as recommended by the
+Nomination and Remuneration Committee and approved by
+the Board of Directors.
+Pursuant to provisions of Section 197 read with Schedule V
+of the Act, in case the Company has no profits/ inadequate
+profits in any financial year during the tenure of the
+Director, the minimum remuneration shall be paid to such
+Director, as may be decided by the Board of Directors, if
+the approval of members is obtained by way of Special
+Resolution. The net profit of the Company is not inadequate
+presently. However for any reason in future years, the
+profits are inadequate or are absent in terms of the Act
+during the term of Mr. Kal, it is proposed to seek members'
+approval by Special Resolution, to enable the Company to
+pay Minimum Remuneration as per the proposed resolution
+to Mr. Kal, for his re-appointment as the Whole-time
+Director.
+The remuneration proposed in the resolution is the
+maximum limit of remuneration of Mr. Kal, within which
+limit the Nomination and Remuneration Committee and
+the Board shall approve the actual remuneration to be paid
+to Mr. Kal. The present actual remuneration paid/ payable
+to him for the year 2020-21 is ₹6.54 crores per annum
+(including variable pay of *0.76 crores). The members at
+the 27th Annual General Meeting had approved maximum
+remuneration of ₹9 crores per annum and it is proposed
+to the members that the maximum limit of 9 crores per
+annum be continued as his maximum remuneration for
+his term of re-appointment i.e. from February 14, 2021 to
+February 13, 2023.
+remuneration and terms and conditions as mentioned in his
+existing appointment letter and draft agreement, which are
+detailed in Resolution set out in Item no. 6 of this Notice,
+for his re-appointment, and the same was approved by the
+Board, subject to the approval of the members at this 29th
+AGM.
+M/s. B M Sharma & Associates, Cost Accountants, have
+been appointed as the Cost Auditors by the Board of
+Directors of the Company on recommendation of the Audit
+Committee, for conducting audit of cost records pertaining
+to the formulations and bulk drugs activities of the
+Company for the financial year ending March 31, 2022 at
+a remuneration of ₹26,50,000/- (Rupees Twenty Six Lakhs
+Fifty Thousand Only) excluding reimbursement of out of
+pocket expenses and applicable taxes.
+281
+Annual Report 2020-21
+At the 26th Annual General Meeting of the Company,
+the members had re-appointed Mr. Kalyanasundaram
+Subramanian ("Mr. Kal") (DIN: 00179072) as Whole-time
+Director for a period of two years which was upto February
+13, 2021. Based on the recommendation of the Nomination
+and Remuneration Committee of the Company, the Board of
+Directors have approved re-appointment and remuneration
+of Mr. Kal, for a further period of two years with effect from
+February 14, 2021, subject to the approval of the members.
+Therefore it is proposed to obtain approval of the members
+for re-appointment of Mr. Kal for a further period of 2 (two)
+years effective from February 14, 2021 to February 13,
+2023 at maximum remuneration of 9 crores per annum as
+detailed in Resolution set out in Item no. 6 of this Notice.
+Item No. 6:
+None of the Directors or Key Managerial Personnel or
+their relatives are in anyway concerned or interested in the
+above resolution as set out in Item no. 5 of this Notice.
+The Board recommends the resolution as set out at item no.
+5 of the Notice for approval of the members as an Ordinary
+Resolution.
+Therefore, consent of the members of the Company is being
+sought for ratification of the remuneration payable to the
+Cost Auditors for the financial year ending March 31, 2022.
+In terms of provisions of Section 148(3) of the Companies
+Act, 2013 read with Companies (Audit and Auditors) Rules,
+2014, member's ratification is required for remuneration
+payable to the Cost Auditors.
+The Nomination and Remuneration Committee has
+recommended the re-appointment of Mr. Kal at such
+Interest coverage ratio is higher for the year ended
+March 31, 2021 due to higher profit before interest, tax and
+exceptional items and also due to reduction in interest cost
+compared to last year, driven by debt repayment
+Current Ratio
+of goods sold)
+1.9
+2.0
+times
+Return on Net Worth is lower for the year ended
+March 31, 2021, due to lower net profit. Reduction in
+net profit is mainly on account of exceptional item
+Interest Coverage Ratio
+Management Discussion and Analysis
+Statutory Reports
+178%
+18.4
+51.2
+times
+-6%
+Reasons if Variance is More than 25%
+Debt Equity Ratio
+24.5%
+0.08
+Table 8 Standalone
+Ratios
+Due to lower profits on account of exceptional item
+-25%
+8.8% 11.6%
+%
+times
+Net Profit Margin (%)
+20.0%
+%
+Operating Profit Margin (%)
+Reduction in debt and increase in net worth
+-56%
+0.18
+22%
+-18%
+(in Billion)
+1.0
+24.7
+16.8
+309
+299
+(%)
+67
+(₹)
+33
+FY20
+(in Billion)
+Assets (at cost)**
+Property, Plant, Equipment
+and Other Intangible
+Unit
+465
+FY21
+FINANCIAL RATIOS
+Table 7 Consolidated
+Ratios
+times
+Inventory Turnover (on cost
+7%
+3.4
+3.7
+times
+Debtors Turnover
+-25%
+6.2% 8.3%
+%
+Return on Net Worth (%)
+Variance
+FY20
+FY21
+Unit
+1.2
+Return on Net Worth (%)*
+FY21
+FY21 FY20
+8.5% 13.2%
+Increased focus on automation, digitalisation and
+leveraging IT technology tools to ensure business
+continuity as well as to facilitate work from home
+(WFH) for many functions in the organisation
+4.
+3.
+Annual Report 2020-21
+manufacturing units
+across all our offices, R&D centres and
+Supply of multiple therapeutics used in treatment
+of COVID-19 like Remdesivir, Favipiravir,
+Itolizumab, Hydroxychloroquine, among others
+Focus on safety and well-being of employees
+across the world
+Maintaining manufacturing continuity to ensure
+regular supply of medicines to customers/patients
+1.
+Sun Pharma has a multi-pronged approach to
+overcoming the challenges of the global pandemic. The
+Company has focused on the following:
+COVID-19 Response
+FY21 Business Highlights
+2.
+5.
+Donated medicines and other items like PPE kits,
+masks, sanitisers, gloves, and so on
+23
+International
+Japanese market and offers a new, safe and effective
+treatment option for plaque psoriasis to doctors and
+patients in the country. Japan has ~430,000 people
+suffering from psoriasis.
+.
+In September 2020, Sun Pharma introduced ILUMYAⓇ
+Subcutaneous Injection 100 mg Syringe in Japan for
+the treatment of plaque psoriasis in adults, who have
+an inadequate response to conventional therapies.
+ILUMYAⓇ is Sun Pharma's first innovative drug in the
+Launched ILUMYAⓇ in Japan
+In August 2020, the Company launched FluGuard®
+(Favipiravir 200 mg) in India at 35 per tablet, for the
+treatment of mild to moderate cases of COVID-19
+in India. Favipiravir is the only oral, anti-viral drug
+approved in India for the potential treatment of
+patients with mild to moderate COVID-19.
+Introduced Cost-Effective Formulation of Favipiravir
+for COVID-19 in India
+In June 2020, Sun Pharma entered into an exclusive
+licencing and distribution agreement for ILUMYATM
+with Hikma Pharmaceuticals PLC (Hikma) for the
+Middle East & North Africa (MENA) region. Under
+this agreement, Hikma will be responsible for the
+registration and commercialisation of ILUMYA across
+the MENA markets and Sun Pharma will be responsible
+for supply.
+Expanding Market Presence for ILUMYA™
+In June 2020, at the American Academy of
+Dermatology (AAD) Virtual Meeting Experience, Sun
+Pharma presented data analyses for ODOMZOⓇ and
+LEVULANⓇ KERASTICK® + BLU-UⓇ, offering clinical
+insights to treat people with or at risk of skin cancer.
+Long-term analyses of the ODOMZO clinical study
+confirmed that treatment with ODOMZO provided
+clinically meaningful outcomes to patients with locally
+advanced basal cell carcinoma (laBCC) who were taking
+common concomitant medicines, such as medicines
+for cardiovascular, inflammatory and auto-immune
+diseases. For LEVULAN KERASTICK + BLU-U, a post
+hoc analysis of the Phase 3 trial supports the efficacy
+and safety benefits of the product, with photodynamic
+therapy (PDT) in treating minimally to moderately thick
+actinic keratoses on the upper extremities. It showed
+significantly greater clearance of lesions and larger
+percentage of cumulative disease area was cleared
+with no clinically significant adverse events.
+Presented Clinical Data Analysis on Treatment of Skin
+Cancer
+In May 2020, Sun Pharma concluded a worldwide
+in-licencing agreement with Sun Pharma Advanced
+Research Company Ltd. (SPARC) for SCD-044, a
+potential oral treatment for atopic dermatitis, psoriasis
+and other auto-immune disorders. The in-licencing of
+SCD-044 strengthens Sun Pharma's specialty pipeline
+of innovative dermatology products and demonstrates
+its commitment to this important segment with
+significant unmet medical needs.
+Strengthening the Specialty Pipeline
+CARE
+Sun Pharmaceutical Industries Limited
+Due to lower net profit on account of lower other income
+and exceptional item
+23%
+-37%
+21.5% 17.5%
+17.0% 27.0%
+%
+(on cost of goods sold)
+-13%
+1.7
+1.5
+times
+Inventory Turnover
+2%
+1.9
+2.0
+times
+Debtors Turnover*
+in net profit is mainly due to lower other income compared
+to last year, and exceptional items
+Return on Net Worth is lower for the year ended
+March 31, 2021, due to lower net profit. Reduction
+Reasons if variance is more than 25%
+Variance
+-35%
+Interest Coverage Ratio
+%
+times
+9.0
+Net Profit Margin (%)
+%
+Operating Profit Margin (%)
+2%
+0.26
+0.27
+times
+Debt Equity Ratio
+Reduction in short-term borrowings has helped improve
+current ratio
+36%
+1.1
+1.4
+times
+Current Ratio
+8%
+9.7
+India
+Management Discussion and Analysis
+* As on March 31
+Our strategy is to create sustainable long-term shareholder value inspired by
+our Vision of - Reaching People And Touching Lives Globally As A Leading
+Provider Of Valued Medicines.
+BUSINESS MODEL
+Sun Pharmaceutical Industries Limited
+CARE
+19
+Annual Report 2020-21
+• Launched in the US in 2018
+US Business
+Launched in the US in 2019
+Hypertension, angina pectoris and heart
+failure in people who have difficulty
+swallowing
+Elevated lipid disorders in people who have
+difficulty swallowing
+Various neuro-psychiatric and pain disorders
+in patients who have difficulty Swallowing
+3. Kapspargo Sprinkle
+(metoprolol succinate
+extended release
+capsules)
+2. Ezallor Sprinkle
+(rosuvastatin capsules)
+1. Drizalma Sprinkle
+(duloxetine delayed-
+release capsules)
+• Launched in the US in 2019
+(Specialty & Generics)
+Indian Branded
+Generics Business
+Emerging Markets
+• Ensure acquisitions yield high
+return on investment
+• Focus on access to products,
+technology, market presence
+• Use acquisitions to bridge critical
+product and capability gaps
+Business Development
+• Leverage benefits of vertical
+integration
+• Continuous focus on optimising
+operational costs
+Cost Leadership
+• Ensure sustained compliance with
+global regulatory cGMP standards
+• Speed to market - in terms of
+launching new products
+• Achieve critical mass across key
+geographies
+• Focus on developing technically
+complex generic products
+• Ramp-up specialty business
+globally
+Create Sustainable
+Revenue Streams
+GROWTH STRATEGIES
+OUR
+Sprinkle Portfolio
+• Effective capital deployment with
+focus on reasonable payback
+Launched in Europe in 2016
+Introduced in the US in 2019
+• Launched in the US in 2019
+Out-licenced to CMS for Greater China in 2019
+•
+• Launched in the US in 2019
+Out-licenced to CMS for Greater China in 2019
+Launched in Japan in 2020
+Launched in the US and Australia in 2018
+Phased launch in Europe by Almirall, starting
+December 2018
+•
+Cequa
+Introduction in key geographies
+Statutory Reports
+Plaque psoriasis
+Indication
+llumya/llumetri
+Product
+Table 6 Commercialised Global Specialty Portfolio
+Presented Positive Results from the ILUMYA® Five-
+Year Study
+Absorica/Absorica LD
+Levulan Kerastick
+Odomzo
+• Launched in the US in 2018
+Currently marketed in the US, Germany, France,
+Denmark, Switzerland, Australia and Israel
+Launched Absorica LD capsules in the US in 2020
+Currently marketed in the US
+Gemcitabine (chemotherapy product) in pre-
+mixed, ready-to-use bags
+Reduction of elevated IOP in patients with
+open-angle glaucoma or ocular hypertension
+Prevention of ocular pain and treatment of
+inflammation following cataract surgery
+Metastatic castration-resistant
+prostate cancer in combination with
+methylprednisolone
+Locally Advanced Basal Cell Carcinoma
+(LABCC)
+In combination with BLU-U (Blue Light
+Photodynamic Therapy Illuminator) for
+treatment of minimally to moderately thick
+actinic keratoses of the face, scalp, or upper
+extremities
+Severe recalcitrant nodular acne
+Dry eye disease
+Infugem/InfuSMART
+Xelpros
+Bromsite
+Yonsa
+Launched in the US in 2019
+20
+BUSINESSES
+Statutory Reports
+India branded generics
+30
+US business
+(%)
+FY21
+FY20
+31
+FY21
+FY20
+FY21
+FY20
+FY21
+FY20
+Adjusted Earnings
+Per Share#
+FY20
+Emerging markets
+18
+Rest of World (ROW)##
+EBITDA = (Revenue from contracts with customers) - (cost of material consumed + purchase of stock-in-trade + changes in inventories of finished
+goods, stock-in-trade and work-in-progress + employee benefits expense + other expenses)
+453
+Business Mix by Geography
+FY21
+FY20
+1,434
+(in Billion)
+(₹)
+Net Worth
+Market Capitalisation*
+845
+Ingredients (API) and others
+6
+Active Pharmaceutical
+15
+(in Billion)
+Minority Interests#
+Adjusted Net Profit after
+(in Billion)
+Annual Report 2020-21
+• Focus on improving return ratios
+• Gain critical mass across key international markets
+• Maintain market leadership and high brand equity in India
+• Develop and commercialise complex generics
+• Enhance share of specialty products in overall business
+• Prioritise sustainable and profitable growth
+Focus Areas
+• Sustain investments directed
+towards developing specialty
+products and complex generics
+• Increase contribution of
+specialty and complex products
+Balance Profitability and
+Investments for the Future
+Rest of the World
+Global Consumer
+Healthcare Business
+API Business
+Management Discussion and Analysis
+21
+** Property, plant, equipment and other intangible assets (at cost) includes Capital work-in-progress & Intangible assets under development
+# Adjusted Net Profit after Minority Interests and Adjusted Earnings Per Share exclude the impact of exceptional items
+##Row includes Western Europe, Canada, Japan, Australia, New Zealand and other markets
+222
+FY20
+40
+81
+65
+331
+(in Billion)
+EBITDA
+Gross Sales
+KEY PERFORMANCE INDICATORS
+Sun Pharmaceutical Industries Limited
+CARE
+323
+193.6
+188.6
+Book Value Per Share
+Business-wise Revenue Share
+FY21
+22
+In October 2020, Sun Pharma presented positive,
+five-year Phase 3 data for ILUMYAⓇ (tildrakizumab-
+asmn) from the combined reSURFACE 1 and
+reSURFACE 2 extension studies at the 29th European
+Academy of Dermatology and Venereology (EADV)
+Virtual Congress. The study found that patients with
+moderate-to-severe plaque psoriasis, who continued
+to receive ILUMYAⓇ through five years of continuous
+treatment, maintained consistent and extensive
+skin clearance with no new safety issues reported.
+In patients treated with ILUMYA 100 mg, clear or
+almost clear skin (PASI 90) was achieved by 65.9% of
+patients and 32.8% of patients achieved completely
+clear skin (PASI 100) at week 244. The standard
+goal of treatment, a PASI 75 response, was achieved
+by 88.7% of patients at week 244. The long-term
+analyses also showed absolute PASI <1/<3/<5 scores
+at week 28 (50.8%, 85.1% and 96.4%, respectively)
+were sustained through week 244 (47.7%, 78.8%
+and 88.7%, respectively). Absolute PASI scores can
+indicate the extent of residual disease after treatment.
+Achievement of an absolute PASI score of <3 has been
+proposed as comparable to a PASI 90 response, which
+is equivalent to clear or almost clear skin. These results
+demonstrate that ILUMYA remains effective year on
+year, maintaining a high level of skin clearance and a
+durable safety profile, regardless of baseline level of
+skin disease, age or background illnesses.
+55
+Introduced Affordable Epilepsy Treatment in India
+In February 2021, Sun Pharma pledged to introduce
+the complete range of Brivaracetam at an affordable
+price for epilepsy treatment in India. The Company's
+brand, Brevipil (Brivaracetam) tablet 25 mg/50 mg/75
+mg/100 mg was launched on Day-1, following the
+patent expiry of innovator product. Brevipil oral
+solution (10 mg/ml) and injectable (10 mg/ml) were
+made available subsequently over the next few weeks.
+Brivaracetam is approved by the Drug Controller
+General of India (DCGI), as an adjunctive therapy in
+treatment of partial-onset seizures among patients 16
+years of age and older, suffering from epilepsy.
+1
+1
+2
+Neuro-psychiatry 17%
+3
+Gastroenterology 12%
+9
+Nutrients
+Respiratory
+Dermatology
+1
+1
+4%
+Chest physicians
+2
+1
+4 Anti-infectives
+9% 10 Gynaecology
+3%
+ENT specialists
+1
+2
+5
+Diabetology
+9%
+11
+Urology
+3%
+Urologists
+Nephrologists
+Vitamins/Minerals/ 5%
+18%
+1
+1
+7
+2
+Neurologists
+1
+1
+Cardiologists
+1
+1
+6
+Orthopaedic specialists
+1
+1
+Diabetologists
+1
+1
+5
+3
+Gastroenterologists
+1
+1
+Consultant physicians
+1
+1
+1
+● Cardiology
+8
+February 2020 February 2021
+1
+6
+Best-in-Class Field Force Productivity
+Sun Pharma has among the highest Sales per Medical
+Representative (MR) ratio in India's pharmaceutical
+market.
+During the year, the Company completed the
+expansion of its sales force to enhance brand focus
+and improve geographic and doctor reach.
+Chart 13 Sales per Medical Representative
+(in Million)
+ ྨ། | ༄།སྒ་
+**Impact of field force expansion
+Roadmap
+• Focus on productivity enhancement
+• Maintain leadership position in a fiercely competitive
+market
+• Innovate continuously to ensure high brand equity with
+doctors
+• Continue to evaluate in-licencing opportunities for latest
+generation patented products, given the Company's
+strong brand equity and extensive distribution network
+Emerging Markets
+18%
+*57,834 Mn
+Revenue share
+Revenue in FY21
+-80
+7
+Markets
+sales reach
+Markets have local
+manufacturing footprint
+-2,200
+Sales representatives
+28
+Leading
+Indian company in Emerging
+Markets
+Initiated Phase 2 Clinical Trial of SCD-044
+In January 2021, the Company announced the
+initiation of Phase 2 clinical trial for SCD-044 (a
+novel, orally bioavailable sphingosine-1-phosphate
+(S1P) receptor 1 agonist) in patients with moderate-
+to-severe plaque psoriasis. SCD-044 is also being
+evaluated in other indications like atopic dermatitis.
+• In May 2021, Sun Pharma entered into a licencing
+agreement with Eli Lilly to expand access to Baricitinib, in
+helping alleviate the burden of COVID-19 in India
+2
+• The Company supplied drugs like Remdesivir, Itolizumab,
+Hydroxychloroquine (HCQS), Favipiravir and Liposomal
+Amphotericin B in the Indian market for treatment of
+COVID-19 and associated ailments
+• The field force expansion project undertaken in Q4
+of FY20, was completed during the year and the new
+medical representatives commenced their field work
+Pain/Analgesics
+7%
+12
+Ophthalmology
+3%
+Ophthalmologists
+2
+General surgeons
+2
+2
+7
+Dermatology
+6%
+13
+Others
+4%
+Gynaecologists
+2
+2
+Annual Report 2020-21
+27
+22
+Sun Pharmaceutical Industries Limited
+CARE
+FY21 Highlights
+• Revenue from the India Formulations business grew
+by 6.5% to 103,432 Million, driven mainly by chronic
+segments
+• To contain the COVID-19 outbreak, the government
+announced a lockdown in the country in the first half of
+the year. This resulted in temporary closure of doctor
+clinics, reduction in patient consultations, postponement
+of non-critical treatments including elective surgeries
+and restrictions in the movement of the medical
+representatives. As per AIOCD AWACS data for the 12
+months ended March-2021, average industry growth
+was 2.1% with acute and semi-chronic segments getting
+impacted due to lockdown restrictions
+• Growth was driven by a combination of volume and price
+progressions
+• During the year, we launched 96 products in the
+domestic market, including the anti-epileptic Brevipil
+(Brivaracetam) and FluGuard (Favipiravir)
+Psychiatrists
+2
+8
+FY20
+FY19
+FY18
+Major Initiatives
+Presented long-term insights into the clinical use of llumya at the American Academy of Dermatology
+(AAD) Virtual Meeting
+• Presented clinical insights for Odomzo and Levulan at AAD Virtual Meeting
+•
+Pre-clinical data for GL0034 (GLP-1R agonist) presented at the American Diabetes Association (ADA)
+Virtual 80th scientific sessions
+Launched Cequa and Absorica LD
+Launched llumya and Yonsa
+• Received USFDA approval for Cequa
+• Launched Xelpros
+•
+Launched Ready-to-Infuse INFUGEM™M
+Launched Odomzo
+Received USFDA approval for llumya
+Annual Report 2020-21
+25
+26
+FY16
+FY13
+FY10
+FY98
+Sun Pharmaceutical Industries Limited
+CARE
+Year
+Major Initiatives
+FY21
+FY17
+Year
+In the US dermatology
+market (by prescriptions)¹
+24
+Specialist
+BUSINESS GEOGRAPHIES
+US Business
+30%
+Revenue share
+*100,839 Mn
+Revenue in FY21
+595
+Statutory Reports
+Management Discussion and Analysis
+64
+501
+Cumulative ANDAS
+approved as on
+March 31, 2021
+Cumulative NDAS approved
+as on March 31, 2021
+94
+Cumulative ANDAS
+filed as on
+March 31, 2021
+ANDAS pending
+USFDA approval as on
+March 31, 2021
+Cumulative NDAs filed
+as on March 31, 2021
+9
+NDAs pending USFDA
+approval as on
+March 31, 2021
+Sun Pharma entered the US pharma market—the world's
+largest pharmaceutical market-in 1997 and has, since
+then, established its prominence in the generics market. It
+subsequently expanded its portfolio to include specialty
+branded products and over-the-counter (OTC) products.
+As per IQVIA data, It is the tenth largest pharmaceutical
+company in the US generics market with the US business
+accounting for ~30% of annual consolidated sales.
+The Company manufactures and markets various dosage
+forms, including liquids, creams, ointments, gels, sprays,
+injectable, tablets, capsules and drug-device combination
+for the US market. It focuses on the Central Nervous
+System (CNS), dermatology, cardiology, oncology,
+ophthalmic segments, among others in the US.
+2"
+Table 9 Milestones in the US Business
+Filed Tildrakizumab
+Over the last two decades, Sun Pharma has grown in the
+US as a valued supplier to some of the largest wholesalers,
+distributors, and chain drugstores. The Company has
+fostered long-standing relationships with care providers and
+payors in the country. A vertically integrated organisation
+with a global presence, Sun Pharma has on-shore and off-
+shore manufacturing capabilities, coupled with a strong
+distribution network to service customers in the US.
+nd
+Acquired Odomzo - branded oncology product from Novartis
+• Focus on product robustness and supply-chain
+efficiencies to ensure high service standards for
+customers
+India Branded Generics Business: Largest Pharma Company in India 5,6
+31%
+Revenue share
+*103,432 Mn
+Revenue in FY21
+No. 1
+Rank with 8.2%
+market share
+No. 1
+Rank by prescription
+with 10 different
+classes of doctors
+Brands among India's
+top 300 brands
+10,900+
+Field force
+Sun Pharma is the largest pharmaceutical company in the
+domestic market with 8.17% market share and strong
+positioning in the high-growth chronic segments. It offers a
+complete therapy basket, with products in neuro-psychiatry,
+cardiology, diabetology, gastroenterology, pain/analgesics,
+gynaecology, ophthalmology, urology, dermatology,
+respiratory, anti-infectives, and other segments.
+Over the years, the Company has built a strong sales force,
+which enables it to reach a large number of doctors in the
+country.
+Chart 12 India Sales - Consistent Growth Trajectory
+(in Billion)
+ེ་ཥ་། ༅་། བ་།。 ལྕ ོ|
+Chart 11 India Business Therapeutic Revenue Break-Up5
+9
+10
+11 12 13
+1
+Acquired Ocular Technologies to receive access to Cequa - treatment for dry eyes
+Launched BromSite
+Table 10
+India Prescription Ranking - Leadership in Key
+Therapeutic Areas
+• Continue to focus on complex generics and high-entry-
+barrier products
+• Ramp-up prescriptions for specialty products
+28
+Statutory Reports
+Management Discussion and Analysis
+Acquired DUSA to enter the branded specialty market
+Acquired Taro Pharma to enter the dermatology market
+Acquired InSite Vision to strengthen the ophthalmology portfolio
+Roadmap
+Entered the US market through Caraco acquisition
+FY21 Highlights
+• Revenues from US de-grew by 4.4% Y-o-Y to
+100,839 Million
+• Despite the significant challenges posed by the
+COVID-19 pandemic, the specialty branded business in
+the US witnessed positive growth, with llumya, Cequa,
+Yonsa and Odomzo being key contributors
+• Following the end of FY21, the first generic for Absorica
+entered the market In April 2021
+Y-o-Y price erosion, driven by faster pace of generic
+approvals and customer consolidation, resulting in a
+competitive market
+Chart 9 Cumulative ANDAs Filed and Approved
+584
+427
+Chart 8 US Sales
+• The US generics market continues to witness
+595
+138
+87
+107
+105
+101
+501
+(in Billion)
+(Numbers)
+Chart 10 Cumulative ANDA Approvals by Therapeutic
+Segments as of March 2021
+ཙྪཱི ཨོྃ་ཅི་རཱ་ཝེ་རྩ་སྤྱི་རྩ་ རྩི་ཆུ
+(Numbers)
+Taro Pharmaceuticals Inc.,
+Brampton, Ontario, Canada
+24.
+26.
+27.
+SRBC & Co. LLP
+Chartered Accountants, Mumbai
+25.
+www.sunpharma.com
+Joydevpur, Gazipur, Bangladesh
+Sun Pharmaceutical Industries
+Sunil R. Ajmera
+(Australia), Port Fairy, Australia
+Taro Pharmaceutical Industries Ltd.,
+Haifa Bay, Israel
+AUDITORS
+REGISTRARS & SHARE TRANSFER
+30.
+Alkaloida Chemical Company Zrt.,
+Tel: (022)-49186000
+Ranbaxy Malaysia Sdn. Bhd.,
+Kedah, Malaysia
+COMPANY SECRETARY
+31.
+Ranbaxy Nigeria Limited,
+400 083
+Mumbai
+LBS Marg, Vikhroli (West),
+C 101, 247 Park,
+October City, Giza, Egypt
+Link Intime India Pvt. Ltd.
+Ranbaxy Egypt (L.L.C.),
+29.
+Tiszavasvari, Kabay, Hungary
+AGENTS
+28.
+(Australia), Latrobe, Australia
+17.
+Sun Pharmaceutical Industries
+Dr. Pawan Goenka
+18.
+Independent Director
+Sun Pharma Laboratories Ltd.,
+Guwahati, Assam, India
+Non-executive and
+Gautam Doshi
+Additional Independent
+Toansa, Punjab, India
+Independent Director
+15.
+Non-executive and
+Fax: (022)-49186060
+14.
+Vivek Chaand Sehgal
+16.
+19.
+Director (appointed with
+Sun Pharma Laboratories Ltd.,
+Setipool, Sikkim, India
+23.
+Telangana, India
+CHIEF FINANCIAL OFFICER
+Medchal-Malkajgiri Dist.,
+Zenotech Laboratories Ltd.,
+22.
+effect from May 21, 2021)
+Baska, Gujarat, India
+Director (appointed with
+21.
+Additional Independent
+Sun Pharma Laboratories Ltd.,
+Ranipool, Sikkim, India
+Rama Bijapurkar
+20.
+effect from May 21, 2021)
+C. S. Muralidharan
+Lagos (Magboro), Nigeria
+Total Equity (Share capital + Other equity)
+rnt.helpdesk@linkintime.co.in
+2,139.70
+25,040.16
+12,803.21
+3,211.14
+24,396.22
+12,531.93
+8.92
+13.38
+Particulars
+(in Crores except EPS)
+2019-20
+Profit (Loss) after Tax
+Revenue from operations
+Earnings Per Share
+(v) Foreign investments or collaborations, if any.
+2020-21
+(in Crores except EPS)
+2019-20
+2,903.82
+46,462.78
+Total Equity (Share capital + Other equity)
+2020-21
+Consolidated Financial Results:
+Earnings Per Share
+General Information:
+13.
+I.
+(i)
+Nature of Industry:
+The Company is engaged into development, manufacture, sale, trading, marketing and export of various
+pharmaceutical products.
+(ii) Date or expected date of commencement of commercial production:
+The Company carries on pharmaceutical business since its incorporation.
+(iii) In case of new companies, expected date of commencement of activities as per project approved by financial
+institutions appearing in the prospectus:
+Not Applicable
+(iv) Financial performance based on given indicators:
+Standalone Financial Results:
+Particulars
+Profit (Loss) after Tax
+Revenue from operations
+3,764.93
+45,264.45
+33,498.14
+32,837.50
+12.1
+Sun House, CTS No. 201 B/1,
+Western Express Highway,
+Goregaon (E), Mumbai 400 063,
+Maharashtra.
+Corporate Office
+Sun Pharma Advanced Research Centre
+(SPARC), Tandalja, Vadodara - 390 012,
+Gujarat.
+Registered Office
+OFFICES
+Saitama, Japan
+Sun Pharmaceutical (Bangladesh) Ltd.,
+Sun Pharmaceutical Medicare Ltd.,
+Sun Pharma Laboratories Ltd.,
+Jammu, Jammu & Kashmir, India
+Malanpur, Madhya Pradesh, India
+Panoli, Gujarat, India
+Maduranthakam, Tamilnadu, India
+Dahej, Gujarat, India
+Cluj, Romania
+S.C Terapia S. A.,
+32.
+CIN: L24230GJ1993PLC019050
+Tel: (022)-4324 4324
+Fax: (022)-4324 4343
+E-mail: sunpharma@linkintime.co.in
+email: secretarial@sunpharma.com
+1 India
+Plot No. 201 B/1, Western Express Highway,
+Goregaon (E), Mumbai 400063, Maharashtra, India.
+Tel: (+91 22) 4324 4324, Fax: (+91 22) 4324 4343
+CIN: L24230GJ1993PLC019050
+SUN HOUSE
+PHARMA
+SUN
+Ohm Laboratories Inc., Terminal Road,
+New Brunswick, New Jersey 08901, USA.
+6 USA
+Taro Pharmaceuticals Inc., 130 East
+Drive, Brampton, Ontario L6T 1C1,
+Canada.
+5 Canada
+Chemistry and Discovery Research Israel,
+14 Hakitor Street, P.O. Box 10347 Haifa
+Bay, 2624761, Israel.
+4 Israel
+Village Sarhaul, Sector-18, Gurugram -
+122 015, Haryana.
+3 India
+17-B, Mahal Industrial Estate, Mahakali
+Caves Road, Andheri (East), Mumbai -
+400 093, Maharashtra.
+2 India
+Sun Pharma Advanced Research Centre,
+F.P.27, Part Survey No. 27, C.S. No.
+1050, TPS No. 24, Village Tandalja,
+District, Vadodara - 390 012, Gujarat.
+MAJOR R&D CENTRES
+Independent Director
+0.00
+Non-executive and
+0.76
+Total
+15.7
+For details of investment made by the Company, please refer the schedule no. 5, 6 and 13 of the Standalone Financial
+Statements forming part of the Annual Report for 2020-21 being sent along with this Notice. The Company has not
+entered into any material foreign collaboration.
+As on March 31, 2021, the Shareholding of Foreign Institutional Investors, Foreign Nationals and Foreign Companies,
+in the Company is detailed as under:
+Particulars
+6.54
+Foreign Portfolio Investors
+Non Resident Indians (Repat)
+Non Resident Indians (Non Repat)
+Foreign Companies
+Overseas Bodies Corporate
+Foreign Bank
+Total
+No. of Shares
+Foreign Nationals
+1.22
+0.24
+0.22
+(vi) Comparative remuneration profile with respect to
+industry, size of the company, profile of the position
+and person (in case of expatriates the relevant details
+would be with respect to the country of his origin):
+The proposed remuneration being paid to the Whole-
+time Directors (looking at the profile of the position
+and person) is commensurate with the remuneration
+being paid by the Companies of comparable size in the
+industry in which the Company operates.
+Details of remuneration proposed for approval of the
+Shareholders at this 29th Annual General Meeting
+of the Company are as provided in the respective
+resolutions no. 6 & 7 in this Notice of 29 th AGM.
+(v) Remuneration proposed
+Their detailed profile is provided under heading "Profile
+of Directors" forming part of this Notice
+Mr. Sailesh T. Desai, Whole-time Director of the
+Company is highly experienced and provided
+significant contribution in some of the marketing
+areas for the products of the Company. He
+has more than 30 years of experience in the
+pharmaceutical industry.
+Mr. Kal, Whole-time Director of the Company,
+has around 35 years of experience in the
+pharmaceutical industry, and has successfully
+contributed towards the growth of the Company.
+ii.
+i.
+(iv) Job profile and his suitability
+Nil
+(iii) Recognition or awards
+Further details are provided under the heading 'Remuneration to Directors' in the Corporate Governance Report
+forming part of the Annual Report for the financial year.
+Besides this, all the Whole-time Directors to whom remuneration is paid are also entitled to encashment of leave as
+per Company policy, and gratuity at the end of tenure, as per the rules of the Company.
+Perquisites include House Rent Allowance if any, Leave Travel Assistance, Medical Reimbursement, contribution to Provident Fund and
+such other perquisites, payable to Directors, as per Company Policy
+1.68
+%
+27,99,78,304
+11.67
+23,092
+The remuneration paid/payable for Financial Year 2020-21 was as follows:
+Name of Director
+Mr. Kalyanasundaram
+Mr. Sailesh T. Desai
+1 Salary includes Special Allowance.
+2
+* in Crores
+Perquisites/
+Salary1
+Bonus
+5.10
+0.41
+Benefits²
+0.26
+Variable pay
+STATEMENT OF INFORMATION FOR THE MEMBERS PURSUANT TO SECTION II OF PART II OF SCHEDULE V
+TO THE COMPANIES ACT, 2013 WITH RESPECT TO ITEM NOS. 6 & 7.
+(ii) Past remuneration
+(vii) Pecuniary relationship directly or indirectly with
+the company, or relationship with the managerial
+personnel [or other director], if any.
+The background details and profile of Mr. Kal and Mr. Sailesh T. Desai are provided under the heading "PROFILE OF
+DIRECTORS" forming a part of this Notice.
+II. Information about the appointees:
+0.00
+5,147,960
+0.21
+3,454,053
+0.14
+17,713
+0.00
+46,000
+13,836
+0.00
+288,680,958
+12.02
+Annual Report 2020-21
+289
+Sun Pharmaceutical Industries Limited
+CARE
+(i) Background details
+12.
+Apart from the remuneration and perquisites paid
+to them as Whole-time Directors as stated above
+III. Other information:
+7.
+North Brunswick, NJ, New Jersey, US
+Kalyanasundaram Subramanian
+Halol, Gujarat, India
+6.
+Ohm Laboratories Inc.,
+Mohali, Punjab, India
+37.
+Ponda, Goa, India
+5.
+New Brunswick, New Jersey, US
+Sailesh T. Desai
+Ohm Laboratories Inc.,
+36.
+Whole-time Director
+38.
+Pharmalucence Inc.,
+Whole-time Director
+Rekha Sethi
+Ankleshwar, Gujarat, India
+11.
+Ahmednagar, Maharashtra, India
+10.
+Non-Independent Director
+Non-executive and
+Pola Pharma Inc.,
+39.
+Silvassa, Dadra & Nagar Haveli, India
+9.
+Sudhir V. Valia
+Billerica, Massachusetts, US
+Paonta Sahib, Himachal Pradesh, India
+8.
+Dadra, Dadra & Nagar Haveli, India
+4.
+Managing Director
+Chattanooga, US
+33.
+Corporate Information
+Notes
+Notes
+290
+Mr. Kal and Mr. Sailesh T. Desai satisfy all the
+conditions set out in Part-I of Schedule V to the Act as
+also conditions set out under sub-section 3 of section
+196 of the Act for being eligible for his appointment.
+They are not disqualified from being appointed as
+Directors in terms of section 164 of the Act. Mr. Kal
+and Mr. Sailesh T. Desai are not debarred from holding
+the office of Director pursuant to any Order issued by
+the Securities and Exchange Board of India ("SEBI") or
+any other authority.
+in the Annual Report in the Corporate Governance
+Report Section under the Heading "Remuneration to
+Directors".
+The information and Disclosures of the remuneration
+package of both Directors have been mentioned
+IV. Disclosures:
+Not Applicable
+(iii) Expected increase in productivity and profits in
+measurable terms
+Steps taken or proposed to be taken for improvement
+Not Applicable
+(ii)
+Reasons of loss or inadequate profits
+Not Applicable
+(i)
+BOARD OF DIRECTORS
+and their respective shareholding held directly or
+indirectly in the Company, Mr. Sailesh T. Desai and
+Mr. Kalyanasundaram Subramanian do not have any
+pecuniary relationship directly or indirectly with the
+Company and its managerial personnel.
+OPERATIONAL MANUFACTURING
+PLANTS
+34.
+Baddi, Himachal Pradesh, India
+3.
+Dilip S. Shanghvi
+Chattem Chemicals, Inc.,
+35.
+Karkhadi, Gujarat, India
+2.
+Non-Independent Director
+South Africa
+Roodepoort, Johannesburg,
+Ranbaxy Pharmaceuticals., (Pty) Ltd.,
+Dewas, Madhya Pradesh, India
+1.
+Chairman, Non-executive and
+Israel Makov
+JSC Biosintez, Penza, Russia
+Notice
+/Concept, content and design at AICL (hello@aicl.in)
+1
+Annual Report 2020-21
+Further, Mr. Kalyanasundaram Subramanian's term as
+Whole-time Director as approved by the members at
+the 26th Annual General Meeting of the Company held
+on September 26, 2018, was upto February 13, 2021.
+Mr. Dilip S. Shanghvi, Managing Director and
+Mr. Kalyanasundaram Subramanian, Whole-time Director of
+the Company retire by rotation at the ensuing 29th Annual
+General Meeting of the Company and being eligible offer
+themselves for reappointment.
+DIRECTORS AND KEY MANAGERIAL PERSONNEL
+Details pertaining to entities that became subsidiaries/
+joint ventures/associates and those that ceased to be the
+subsidiaries/joint ventures/associates of the Company
+during the year under review are provided in Note: 38 of
+the notes to the Consolidated Financial Statements, forming
+part of the Annual Report.
+The highlights of performance of subsidiaries, joint
+ventures and associates and their contribution to the
+overall performance of the Company during the financial
+year under review is given under Annexure 'A' to the
+Consolidated Financial Statements forming part of the
+Annual Report.
+SUBSIDIARIES/JOINT VENTURES/ASSOCIATES
+The statement containing the salient features of the
+Financial Statements of the Company's subsidiaries/joint
+ventures/ associates is given in Form AOC - 1, provided in
+Notes to the Consolidated Financial Statements, forming
+part of the Annual Report.
+The Annual Return as required under sub-section (3) of
+Section 92 of the Companies Act, 2013 ('the Act') in form
+MGT-7 is made available on the website of the Company
+and can be accessed at https://sunpharma.com/investors-
+annual-reports-presentations/
+ANNUAL RETURN
+35
+The merger will result synergies of operations, reduction in
+overheads including administrative, managerial and other
+expenditure, operational rationalisation, organisational
+efficiency, competitive advantage and optimal utilisation of
+resources eventually enhancing the growth and reputation
+of the group. Pursuant to the Scheme, no consideration
+shall be paid nor any shares of the Company shall be issued
+and allotted to the shareholders of the Transferor Company.
+Directors of the Company or such date as may be approved
+by the Hon'ble NCLT or such other appropriate date as the
+Appropriate Authority may decide.
+The Hon'ble National Company Law Tribunal of Gujarat,
+at Ahmedabad ("NCLT") vide its Order dated January 07,
+2021 had dispensed with convening of meeting of secured
+creditor(s) of the Company and had ordered to convene the
+meeting of equity shareholders and unsecured creditors
+of the Company and accordingly separate meetings of
+the equity shareholders and unsecured creditors were
+convened on March 16, 2021 by way of Video Conferencing
+/ Other Audio Visual Means to approve the Scheme with
+appointed date as January 01, 2020 or such subsequent
+date as may be decided by the Board of Directors as
+applicable, of the Transferor Company and the Board of
+During the year, the Board of Directors of the Company
+at its meeting held on July 31, 2020 had approved the
+Scheme of Amalgamation and Merger of Sun Pharma
+Global FZE ("Transferor Company"), an indirect wholly
+owned subsidiary of the Company with Sun Pharmaceutical
+Industries Limited ("Company") and their respective
+members and creditors ("Scheme") pursuant to Section 234
+read with Sections 230 to 232 of the Companies Act, 2013
+and the relevant rules and regulations made thereunder for
+amalgamation of Transferor Company into the Company.
+SCHEME OF ARRANGEMENT
+During the year under review there was no change in the
+paid-up share capital of the Company.
+CHANGES IN CAPITAL STRUCTURE
+No Equity Shares have been bought back under the Buy-
+back as the volume weighted average market price of Equity
+Shares of the Company during the Buy-Back period was
+higher than the Maximum Buy-back Price.
+The Buy-back period had opened on and from March
+26, 2020 and had closed, during the year under review,
+effective from closure of trading hours on September 25,
+2020 i.e., within 6 months from the date of the opening of
+Buy-back.
+The Board of Directors of the Company at its meeting
+held on March 17, 2020, had approved the buy-back of
+Company's equity shares of face value of 1/- each ("Equity
+Shares") from the Open Market through stock exchange
+mechanism as prescribed under the Securities and Exchange
+Board of India (Buy-Back of Securities) Regulations, 2018,
+at a maximum price of ₹425/- (Rupees Four Hundred
+Twenty Five Only), per Equity Share payable in cash, for an
+aggregate maximum amount of up to 1700,00,00,000/-
+(Rupees One Thousand Seven Hundred Crores Only)
+("Maximum Buy-back Size").
+At both the meetings namely the meeting of equity
+shareholders and the meeting of unsecured creditors, the
+resolution for approval of proposed merger was passed with
+requisite majority. The approval of NCLT is awaited.
+BUY-BACK OF SHARES
+Sun Pharmaceutical Industries Limited
+CARE
+On the recommendation of the Nomination and
+Remuneration Committee, the Board of Directors by
+passing a resolution by circulation have appointed
+Dr. Pawan Goenka (DIN: 00254502) and Ms. Rama
+Bijapurkar (DIN: 00001835) as Additional Independent
+Directors of the Company effective from May 21, 2021
+in accordance with the provisions of Section 149 of the
+Act and in terms of Section 161(1) of the Act, they both
+hold office upto the date of ensuing 29th Annual General
+Meeting. In the opinion of the Board, Dr. Pawan Goenka
+and Ms. Rama Bijapurkar hold highest standards of integrity
+and possess requisite expertise and experience required to
+fulfil their duties as Independent Directors and further they
+are exempted from the requirement to undertake online
+proficiency self-assessment test conducted by the Indian
+Institute of Corporate Affairs in terms of Section 150 of
+the Act read with Rule 6 of the Companies (Appointment
+and Qualification of Directors) Rules, 2014. The Board
+recommends appointment of Dr. Pawan Goenka and
+Ms. Rama Bijapurkar as Independent Directors of the
+Company for a term of 5 (Five) years effective from May 21,
+2021 upto May 20, 2026 for approval of the members at
+the ensuing 29th Annual General Meeting of the Company.
+The Chairman and other members of the Board discussed
+upon the performance evaluation of every Director of
+the Company and concluded that they were satisfied with
+the overall performance of the Directors individually and
+that the Directors generally met their expectations of
+performance.
+The summary of the feedback from the members were
+thereafter discussed in detail by the members. The
+respective Director, who was being evaluated, did not
+participate in the discussion on his/her performance
+evaluation.
+The Chairman additionally interacted with each Director
+individually, for evaluation of performance of all Individual
+Directors and Mr. Dilip Shanghvi, along with other Directors
+had evaluated the performance of Mr. Israel Makov as the
+Chairman and as an Individual Director. They were satisfied
+with the overall performance of the Directors individually
+and that the Directors generally met their expectations of
+performance.
+The Board also assessed the fulfillment of the
+independence criteria as specified in Listing Regulations,
+by the Independent Directors of the Company and their
+independence from the management.
+• Increase retail connect programmes to ensure better
+availability of our products for end consumers
+The performance of the Board was evaluated by the Board
+after seeking inputs from all the Directors on the basis of
+various criteria such as diversity in the Board, competency
+of Directors, strategy and performance evaluation,
+evaluation of performance of the management and
+feedback, independence of the management from the Board
+etc. The performance of the Committees was evaluated
+by the Board after seeking inputs from the Committee
+members on the basis of criteria such as mandate and
+composition, effectiveness of the committee, independence
+of the committee from the Board, contribution to decisions
+of the Board, etc.
+HUMAN RESOURCES
+2020 was a very challenging year for everyone. Our
+37000+ strong global workforce worked relentlessly to
+ensure medicines continue to reach patients who rely on
+us. As lockdowns hit across the world, our teams being
+part of essential services, ensured our 44 manufacturing
+sites, distribution centres, R&D centres and sales offices
+worldwide continue to operate. We are grateful to our
+employees who made this happen with a safety-first mind
+set. The top priority for the Human Resource function was
+providing a safe work environment to employees globally.
+Your Directors would like to take this opportunity to
+express their gratitude and appreciation for the passion,
+The Board of Directors of the Company at its meeting
+held on January 29, 2021, on the recommendation of the
+Nomination and Remuneration Committee, had approved
+re-appointment and remuneration of Mr. Kalyanasundaram
+Subramanian as Whole-time Director for a further period of
+two years with effect from February 14, 2021 till February
+13, 2023, subject to the approval of the shareholders of the
+Company at the 29th Annual General Meeting. The Board of
+Directors recommend his re-appointment and remuneration
+for further period of two years with effect from February
+14, 2021, for approval of the members at the ensuing 29th
+Annual General Meeting of the Company.
+dedication and commitment of the employees and look
+forward to their continued contribution.
+DISCLOSURE UNDER THE SEXUAL HARASSMENT
+OF WOMEN AT WORKPLACE (PREVENTION,
+PROHIBITION AND REDRESSAL) ACT, 2013
+Your Company strongly believes in providing a safe and
+harassment free workplace for each and every individual
+working for the Company through various interventions
+and practices. It is the continuous endeavour of the
+Management of the Company to create and provide
+an environment to all its employees that is free from
+discrimination and harassment including sexual harassment.
+The Company has adopted a policy on prevention,
+prohibition and redressal of sexual harassment at workplace
+in line with the provisions of the Sexual Harassment
+of Women at Workplace (Prevention, Prohibition and
+Redressal) Act, 2013 and the Rules made thereunder. The
+Company has arranged various interactive awareness
+workshops in this regard for the employees at the
+manufacturing sites, R & D set ups & corporate office during
+the year under review. The Company has submitted the
+Annual Returns to the local authorities, as required under
+the above mentioned Act.
+During the financial year ended March 31, 2021, no
+complaint pertaining to sexual harassment was received by
+the Company. There are no complaints pending as at the
+end of the financial year.
+Your Company has complied with provisions relating to the
+constitution of Internal Complaints Committee under the
+Sexual Harassment of Women at Workplace (Prevention,
+Prohibition and Redressal) Act, 2013
+AUDITORS
+Statutory Auditors
+SRB C & Co LLP, Chartered Accountants, (Firm's Regn.
+No. 324982E/ E300003), were appointed as the Statutory
+Auditors of the Company for a period of 5 (five) years at the
+25th Annual General Meeting of the Company to hold office
+till the conclusion of the 30th Annual General Meeting of
+the Company.
+38
+Mr. Sailesh T. Desai was re-appointed as the Whole-
+time Director at the 26th Annual General Meeting of the
+Company held on September 26, 2018 for a period of 5
+(five) years effective from April 1, 2019 upto March 31,
+2024. However, due to inadequacy of profits at that time,
+the approval for maximum remuneration to be paid to
+Mr. Sailesh T. Desai was sought from the members for a
+period of 3 years with effect from April 1, 2019 to March
+31, 2022, including the minimum remuneration to be paid to
+him in event of loss or inadequacy of profits in any financial
+year during the aforesaid period of 3 years. The Board
+of Directors, at its meeting held on May 27, 2021, have
+considered, approved and recommends to the members, the
+maximum remuneration to be paid to Mr. Sailesh T. Desai,
+as recommended by the Nomination and Remuneration
+Committee, for further period of two years i.e. for the
+remaining term of his present appointment, from April 1,
+2022 till March 31, 2024.
+Information as per Section 197 (12) of the Act read
+with Rule 5(1) of the Companies (Appointment and
+Remuneration of Managerial Personnel) Rules, 2014 is
+provided in 'Annexure - A' to this Report. Further, the
+information pertaining to Rule 5(2) & 5(3) of the Companies
+(Appointment and Remuneration of Managerial Personnel)
+Rules, 2014, pertaining to the names and other particulars
+of employees is available for inspection at the Registered
+office of the Company during business hours and pursuant
+to the second proviso to Section 136(1) of the Act, the
+Report and the accounts are being sent to the members
+excluding this. Any shareholder interested in obtaining a
+copy of the same may write to the Company Secretary/
+Compliance Officer either at the Registered/Corporate
+Office address or by email to secretarial@sunpharma.com.
+The dividend payout is in accordance with the Company's
+Dividend Distribution Policy. The policy is available on the
+website of the Company and can be accessed through the
+web link: https://sunpharma.com/policies/.
+Statutory Reports
+Board's Report
+34
+Less:
+37,377.3
+28,985.5
+31,925.1
+21,324.4
+Amount available for appropriation
+Additions:
+333,301.9
+353,200.5
+Dividend on Equity Shares
+123,846.1
+Opening balance in Retained Earnings
+6,859.5
+(6,870.2)
+Non-Controlling Interest
+-
+56,068.4
+28,133.4
+31,303.4
+22,030.0
+140,052.7
+15,590.6
+13,789.6
+15,590.6
+Therefore, the total dividend payout for the FY21 is *7.50/-
+(Rupees Seven and paise fifty only) per equity share of *1/-
+each [previous year *4.00/- per equity share of 1/- each].
+of 1/- each [previous year 1/- per equity share of *1/-
+each] for the year ended March 31, 2021, subject to the
+approval of the equity shareholders at the ensuing 29th
+Annual General Meeting of the Company. Pursuant to the
+provisions of the Finance Act, 2020, the said final dividend
+will be liable for deduction of income tax at source.
+353,200.5
+23.0
+365,980.9
+55.0
+140,052.7
+145,786.5
+In addition to above, your Directors have recommended a
+final dividend of 2/- (Rupees Two only) per equity share
+During the year under review, your Directors at their
+meeting held on January 29, 2021 had declared an interim
+dividend of $5.50 (Rupees Five and paise fifty only) per
+equity share of 1/- each [previous year *3.00 per equity
+share of 1/- each] for the year ended March 31, 2021. The
+interim dividend was paid on February 17, 2021 to those
+shareholders who held shares as on February 10, 2021,
+being the record date for payment.
+DIVIDEND
+Closing balance in Retained Earnings
+- General reserve
+- Legal reserve
+Transfer to/from various Reserves:
+2,834.5
+831.6
+559.5
+Buy-back of equity shares by overseas subsidiaries
+1,928.9
+Dividend Distribution Tax
+13,789.6
+independent views and judgement etc. Further the
+evaluation of Chairman of the Board, in addition to the
+above criteria for individual Directors, also included
+evaluation based on effectiveness of leadership and ability
+to steer the meetings, impartiality, etc.
+Owners of the Company
+Sun Pharmaceutical Industries Limited
+CARE
+Annual Report 2020-21
+R&D spend as percentage
+of sales in FY21
+*193+ Bn
+Cumulative R&D expenditure
+till date
+At Sun Pharma, R&D is a key determinant of future success.
+The R&D team focuses on delivering innovative and
+affordable therapies to cater to the needs of patients. A
+critical catalyst to the business, R&D investments help build
+a strong pipeline of branded generics, pure generics and
+specialty products for India and international markets.
+The Company has received declarations from all the
+Independent Directors of the Company confirming that
+they meet with the criteria of independence as prescribed
+under Section 149(6) of the Act and under Securities and
+Exchange Board of India (Listing Obligations and Disclosure
+Requirements) Regulations, 2015 ("Listing Regulations").
+Sun Pharma's R&D capabilities include expertise in the
+development of products across dosage forms, such as
+injectables, orals, liquids, ointments, gels, sprays, hormones
+and oral products. The R&D team is actively supported by
+strong intellectual property capability.
+The Company operates in a highly competitive industry and
+thus continues to fortify its R&D capabilities with focused
+investments to develop its long-term specialty and complex
+generics pipeline in the long run.
+30
+Chart 14 R&D Investments
+6.5%
+(in Billion)
+8.6%
+6.9%
+6.1%
+6.5%
+:{}}
+FY17
+FY20
+■R&D Investments (Rs Bn)
+R&D Investments (% of sales)
+7.6%
+Statutory Reports
+Research and Development (R&D):
+Creating Future Growth Engines
+• Focus on development and commercialisation of
+strategic APIs for captive consumption
+Active Pharmaceutical Ingredient (API) Business: Strategic Integration
+6%
+Revenue share
+*19,504 Mn
+Revenue in FY21
+-300 APIS
+Product portfolio
+~20-30
+APIs scaled up annually
+• Ensure consistent supplies and high service standards for
+customers
+365
+14
+DMF/CEP approvals
+to date
+DMF/CEP filings to date
+Manufacturing units
+The API business is strategically important for Sun Pharma,
+as it provides opportunities for strong backward integration
+and speed to market. These linkages, in turn, provide
+cost competitiveness and a reliable supply chain, thereby
+reducing dependence of third-party suppliers. With ~300
+offerings in the product portfolio, it caters to large generic
+manufacturers and innovator companies, after meeting
+captive consumption requirements. The Company has 14
+API manufacturing units across multiple countries and
+develops -20-30 APIs annually.
+FY21 Highlights
+• Revenue from the API business increased by 1.8% to
+19,504 Million
+• Growth was muted mainly due to lower sales of opiates
+products
+Roadmap
+479
+Management Discussion and Analysis
+Chart 15 Filings and Approvals
+(Numbers)
+Gratuity/group insurance: Personnel may also
+be awarded to group insurance and other key
+man insurance protection. Further as required
+by the law necessary gratuity shall be paid to the
+personnel.
+f) Commission: The directors may be paid
+commission if approved by the shareholders. The
+shareholders may authorise the Board to declare
+commission to be paid to any director of the
+Board.
+Entitlement: The authority to determine the
+entitlement to various components as aforesaid for
+each class and designation of personnel shall be as
+follows:
+Designation / Class
+Director
+Key Managerial
+Personnel and Senior
+Management
+Other employees
+To be determined by
+Board of Directors on the
+recommendation of the Nomination
+and Remuneration Committee
+within the limits approved by the
+shareholders
+Board of Directors on
+recommendation of the Nomination
+and Remuneration Committee
+Human Resources Head
+Non-monetary benefits: Senior management
+personnel of the Company may, on a case to
+case basis, be awarded customary non-monetary
+benefits such as discounted salary advance /
+credit facility, rent free accommodation, Company
+cars with or without chauffer, share and share
+price related incentive, reimbursement of
+electricity and telephone bills etc.
+Note: For the purpose of this Policy, the term 'Senior
+Management' shall have the same meaning as defined
+under the SEBI (Listing Obligation and Disclosure
+Requirements) Regulations, 2015
+FAMILIARISATION PROGRAMME FOR THE
+INDEPENDENT DIRECTORS
+In compliance with the requirements of Regulation 25(7)
+of the Listing Regulations, the Company has put in place a
+Familiarisation Programme for the Independent Directors
+to familiarise them with the Company, their roles, rights,
+responsibilities in the Company, nature of the industry in
+which the Company operates, business model etc. The
+details of the Familiarisation Programme conducted are
+available on the website of the Company: www.sunpharma.
+com and can be accessed through the web link: https://
+sunpharma.com/policies/
+NUMBER OF MEETINGS OF THE BOARD
+The Board of Directors of the Company met 4 (Four)
+times during the year under review on May 27, 2020;
+July 31, 2020; November 03, 2020; and January 29,
+2021. The particulars of attendance of the Directors at
+the said meetings are provided in detail in the Corporate
+Governance Report, which forms a part of this Report.
+The intervening gap between the meetings was within the
+period prescribed under the Act and Listing Regulations.
+EVALUATION OF PERFORMANCE OF THE BOARD, ITS
+COMMITTEES AND INDIVIDUAL DIRECTORS
+During the year, the evaluation of the annual performance
+of individual Directors including the Chairman of
+the Company and Independent Directors, Board and
+Committees of the Board was carried out under the
+provisions of the Act, relevant Rules, and the Corporate
+Governance requirements as prescribed under Regulation
+17 of Listing Regulations and based on the circular issued by
+SEBI dated January 5, 2017 with respect to Guidance Note
+on Board Evaluation. The Nomination and Remuneration
+Committee had approved the criteria for the performance
+evaluation of the Board, its Committees and individual
+Directors as per the SEBI Guidance Note on Board
+Evaluation.
+The Chairman of the Company interacted with each
+Director individually, for evaluation of performance of the
+individual Directors. The evaluation for the performance
+of the Board as a whole and of the Committees were
+conducted by way of questionnaires.
+In a separate meeting of Independent Directors,
+performance of Non Independent Directors and
+performance of the Board as a whole was evaluated.
+Further, they also evaluated the performance of the
+Chairman of the Company, taking into account the views of
+the Executive Directors and Non-executive Directors.
+The Nomination and Remuneration Committee reviewed
+the performance of the individual Directors on the basis
+of the criteria such as qualification, experience, knowledge
+and competency, fulfilment of functions, availability
+and attendance, initiative, integrity, contribution and
+commitment etc., and the Independent Directors were
+additionally evaluated on the basis of independence,
+The complete Policy as approved by the Board is
+available on the website of the Company and can be
+accessed through the web link: https://sunpharma.
+com/policies/.
+Share based payments: The Board may, on
+the recommendation of the Nomination and
+Remuneration Committee, issue to certain class
+of personnel a share and share price related
+incentive program.
+variable salaries based on their performance
+evaluation. Such variable salaries should be based
+on the performance of the individual against his
+short and long term performance objectives and
+the performance of the Company.
+e)
+ANDA
+NDA/BLA
+DMF/CEP
+Patents"
+**Excludes Expired/Abandoned Patents
+(All data as of March 31, 2021)
+In the opinion of the Board, the Independent Directors
+of the Company fulfil the conditions specified under the
+Act and Listing Regulations and are independent of the
+management.
+REMUNERATION POLICY FOR DIRECTORS, KEY
+MANAGERIAL PERSONNEL AND OTHER EMPLOYEES
+AND CRITERIA FOR APPOINTMENT OF DIRECTORS
+For the purpose of selection of any Director, the
+Nomination and Remuneration Committee identifies
+persons of integrity who possess relevant expertise,
+experience and leadership qualities required for the
+position. The Committee also ensures that the incumbent
+fulfils such criteria with regard to qualifications, positive
+attributes, independence, age and other criteria as laid
+down under the Act, Listing Regulations or other applicable
+laws. The Board has, on the recommendation of the
+Nomination and Remuneration Committee framed a Policy
+on remuneration of Directors, Key Managerial Personnel
+and other Employees.
+The salient features of the Remuneration Policy of the
+Company are as under:
+A. Guiding Principles for remuneration: The Company
+shall remunerate all its personnel reasonably and
+sufficiently as per industry benchmarks and standards.
+The remuneration shall be commensurate to retain and
+motivate the human resources of the Company. The
+compensation package will, inter alia, take into account
+the experience of the personnel, the knowledge & skill
+required including complexity of his job, work duration
+and risks associated with the work, and attitude of the
+employee like positive outlook, team work, loyalty etc.
+B.
+Components of Remuneration: The following will be
+the various remuneration components which may be
+paid to the personnel of the Company based on the
+designation and class of the personnel.
+a)
+Fixed compensation: The fixed salaries of the
+Company's personnel shall be competitive
+and based on the individual personnel's
+responsibilities and performance.
+Appropriate resolutions for the appointment, re-
+appointment and remuneration of the Directors are being
+b)
+36
+Variable compensation: The personnel of the
+Company may be paid remuneration by way of
+Statutory Reports
+Board's Report
+c)
+d)
+37
+-
+62,927.9
+21,263.2
+generics company
+4th largest global specialty
+Strong global prominence
+Strengths
+Table 13 SWOT Analysis 1,4,5,6
+Sun Pharma has a robust quality management system. Its
+research centres, manufacturing units, testing labs and
+distribution facilities follow the highest global quality
+Quality: Commitment to Excellence
+Sun Pharma's global team has 37,000+ people from over
+50 nationalities, collaborating across cultures and locations
+to develop, manufacture and distribute pharmaceutical
+products to patients/customers across over 100 geographical
+markets. The Company offers a congenial work environment
+that provides equal opportunities for growth, recognising and
+rewarding the merits of its people. Sun Pharma offers
+inclusive growth and knowledge-sharing to make its teams
+future-ready.
+14
+10th largest generics Company in the US
+2nd largest by prescriptions in the US
+dermatology segment
+1
+1
+2
+9
+Number of API
+facility
+People: Share One Purpose
+Hungary
+Total
+US
+Israel
+Australia
+1
+India
+Largest pharma company in India by
+market share
+doctors in India
+competitive intensity, on account
+of faster pace of generic drug
+approvals by the USFDA
+Challenging US generics pricing
+environment, driven by customer
+consolidation and higher
+Fresh outbreaks of the pandemic
+across the world and subsequent
+disruption in economic activities
+may impact economic growth
+across countries and indirectly
+also impact pharmaceutical
+consumption
+Threats and Weaknesses
+Favourable macro-economic
+parameters for India and emerging
+markets are likely to ensure
+reasonable volume growth for
+pharmaceutical products across these
+markets in the long term
+The pandemic has also brought
+forward the need for therapeutic
+medicines for treating COVID-19
+symptoms, extending an opportunity
+for pharmaceutical companies to
+service the urgent and vital needs
+of patients. However, the demand
+for such products keeps fluctuating
+depending on the number of viral
+infections
+The pandemic has resulted in
+increased healthcare awareness
+globally. This augurs well for
+companies like Sun Pharma,
+which can supply high-quality
+pharmaceutical products at affordable
+prices
+• Enhance systems, processes, human capabilities
+continuously to ensure compliance with global regulatory
+standards
+• Ensure 24x7 compliance to cGMP, which is imperative for a
+global pharmaceutical business
+No. 1 ranking with 10 different classes of
+Roadmap
+standards. The Company has a global Quality Management
+team that oversees regulatory conformity of every product
+and manufacturing facility. It has cGMP certifications from
+global regulatory authorities like USFDA, EMEA, WHO and
+TGA, among others. The Company has a Corporate Quality
+Unit that supervises the implementation of latest cGMP
+updates and guidelines.
+Opportunities
+•
+Focus on driving growth and profitability
+through a pragmatic mix of organic and
+inorganic initiatives
+capabilities to develop technologically
+complex products in the generic and
+specialty segments
+Robust R&D infrastructure and
+in Japan
+Largest Indian pharmaceutical company
+Among the largest Indian pharmaceutical
+companies in the emerging markets
+In December 2019, the USFDA inspected the Company's
+Halol facility and issued Form 483 with 8 observations.
+Following submission of the Company's response in January
+2020, the USFDA classified the inspection status as Official
+Action Indicated (OAI). The Company was in continuous
+communication with the USFDA to resolve outstanding issues
+and is awaiting a re-inspection by USFDA to resolve the OAI
+status. However, due to the pandemic and travel restrictions,
+the re-inspection has been delayed. The Company continues
+to manufacture and distribute products to the US from this
+facility. However, the OAI status normally implies that the
+USFDA may put all new approvals from the Halol facility on
+hold till the OAI status is changed.
+Country
+Table 12 API Manufacturing Units
+CARE
+Table 11 Finished Dosage Manufacturing Units
+Country
+India
+US
+Japan
+Canada
+Hungary
+Israel
+Bangladesh
+South Africa
+Malaysia
+Romania
+Many of Sun Pharma's manufacturing facilities are certified
+by global regulatory agencies like the United States
+Egypt
+Russia
+Total
+Number of
+Finished
+Dosage Facility
+15
+3
+2
+1
+1
+1
+Nigeria
+The Company has 44 state-of-the-art production units
+spanning India, the Americas, Asia, Africa, Australia
+and Europe. This enables Sun Pharma to produce high-
+quality affordable products. With a vertically-integrated
+manufacturing network, the Company can produce diverse
+dosage forms, including hormones, peptides, controlled
+substances, orals, creams, ointments, injectables, sprays and
+liquids.
+Global Manufacturing Base: World-class
+Manufacturing Infrastructure
+• Continue to work on developing APIs of strategic
+importance
+Sun Pharmaceutical Industries Limited
+31
+Annual Report 2020-21
+30
+1
+1
+1
+1
+1
+FY21 Highlights
+• Commenced phase 3 trials for llumya (Tildrakizumab) for
+psoriatic arthritis indication
+Commenced phase 2 trials for:
+SCD044 A S1P1 agonist for plaque psoriasis and
+atopic dermatitis
+MMII - Treatment of knee pain in patients with
+symptomatic knee osteoarthritis
+• Commenced phase 1 trials for GL0034, a GLP-1R
+(Glucagon-Like Peptide-1 Receptor) agonist for treating
+diabetes
+Roadmap
+• Invest to build the specialty R&D pipeline
+Food and Drug Administration (USFDA), the European
+Medicines Evaluation Agency (EMEA); the UK Medicines
+and Healthcare Products Regulatory Agency (MHRA);
+Australia's Therapeutic Goods Administration (TGA); South
+Africa's Medicines Control Council (MCC); Germany's
+Federal Institute for Drugs and Medical Devices (BfArM);
+Brazilian Health Regulatory Agency (ANVISA); the World
+Health Organisation (WHO), South Korea's Ministry of Food
+and Drug Safety and Japan's Pharmaceuticals and Medical
+Devices Agency.
+Sun Pharma has 30 finished dosage manufacturing facilities,
+while its 14 API facilities provide captive support.
+• Develop complex products for global markets
+• Target products specifically for emerging markets and
+India
+Significant volatility in the forex
+market, especially for emerging
+market currencies, may adversely
+impact reported growth of these
+markets, even though they may be
+recording growth in local currency
+terms
+32
+Statutory Reports
+Management Discussion and Analysis
+(3,446.0)
+(2,317.4)
+Share of profit/(loss) of associates and joint venture [Net]
+Profit for the year before non-controlling interests
+Non-controlling interests
+associates and joint venture
+Profit after Tax but before Share in profit /(loss) of
+Profit after tax
+- Deferred Tax - Exceptional
+- Deferred Tax Charge / (Credit)
+13,201.4
+(331.0)
+9,573.0
+2,449.1
+Current Tax
+-
+50,095.9
+27,993.7
+32,530.0
+21,528.7
+2,606.4
+43,061.4
+3,864.6
+(4,973.4)
+(4,095.1)
+21,397.0
+31,303.4
+22,030.0
+Total Comprehensive Income for the year attributable to:
+21,208.3
+(1,460.3)
+(808.0)
+633.0
+37,649.3
+29,038.2
+Profit for the year attributable to owners of the Company
+Total other Comprehensive Income
+4,070.3
+(6,314.7)
+41,719.6
+22,723.5
+(148.3)
+(123.3)
+41,867.9
+22,846.8
+41,867.9
+22,846.8
+32,111.4
+895.6
+1
+52,702.3
+328,375.0
+5. AIOCD AWACS
+4. Evaluate Pharma
+3. Nicholas Hall data 2020
+2. Grandview research
+1. IQVIA Institute
+Bibliography
+The GIA's functioning is governed by the Audit Charter,
+duly approved by the Audit Committee of the Board,
+which stipulates matters contributing to the proper and
+effective conduct of the audit. The audit processes are fully
+automated on a 'SunScience' tool, which integrates internal
+audits,
+An independent and empowered Global Internal Audit
+Function at the corporate level, with support from a
+reputed audit firm, carries out risk-focused audits across
+our Indian and overseas businesses, to ensure that
+business process controls are adequate and are functioning
+effectively. These reviews include financial, operational
+and compliance controls and risk mitigation plans. The
+Company's operating management closely monitors
+the internal control environment and ensures that the
+recommendations are effectively implemented. The Audit
+Committee of the Board monitors performance of the
+Internal Audit Function, reviews key findings and provides
+strategic guidance.
+Global Internal Audit (GIA)
+6. SMSRC data
+Sun Pharma believes that internal control is a prerequisite
+for governance and that business plans should be exercised
+within a framework of checks and balances. The Company
+has a well-established internal control framework,
+which is designed to continuously assess the adequacy,
+effectiveness and efficiency of financial and operational
+controls. The management is committed to ensuring an
+effective internal control environment, commensurate with
+the size and complexity of the business, which provides an
+assurance on compliance with internal policies, applicable
+laws, regulations and protection of resources and assets.
+Developing a specialty pipeline
+entails high upfront investments
+for long-term benefits, and may
+impact short-term profitability
+Threats and Weaknesses
+Given the additional spending
+on battling the pandemic,
+governments across the world
+may try to control pricing of
+certain products, which may
+lead to government-mandated
+price controls on pharmaceutical
+products
+Growing penetration of generics
+in Japan and opening of the China
+market, present good long-term
+opportunities for Indian companies,
+including Sun Pharma
+For many years, developed markets
+witnessed a consistent increase in
+contribution of specialty products in
+their overall pharmaceutical spending
+and this trend is expected to continue
+in future as well. Sun Pharma has
+already commercialised many of
+its specialty products in developed
+markets, and hence will be able to
+reap the benefits of this expanding
+opportunity
+Opportunities
+•
+Ability to supply affordable, high-quality
+products consistently across the world
+Strong balance sheet imparts ability to
+undertake inorganic initiatives without
+any significant leverage, allowing future
+growth headroom
+Strengths
+Internal Control
+7. Euromonitor
+8. CEGEDIM
+Disclaimer
+Statements in this 'Management Discussion and Analysis'
+describing the Company's objectives, projections, estimates,
+expectations, plans or industry conditions or events
+are 'forward-looking statements' within the meaning of
+applicable securities laws and regulations. Actual results,
+performance or achievements could differ materially from
+those expressed or implied. Important factors that could
+make a difference to the Company's operations include
+global and Indian demand-supply conditions, finished
+goods prices, feedstock availability and prices, competitors'
+pricing in the Company's principal markets, changes in
+government regulations, tax regimes, economic conditions
+within India and the countries within which the Company
+conducts business and other factors, such as litigation and
+labour unrest or other difficulties. The Company assumes
+no responsibility to publicly update, amend, modify or
+revise any forward-looking statements, based on any
+subsequent development, new information or future events
+or otherwise, except as required by applicable law. Unless
+the context otherwise requires, references in this document
+to 'we', 'us' or 'our' refers to Sun Pharmaceutical Industries
+Limited and consolidated subsidiaries.
+Year ended
+March 31, 2020
+Year ended
+March 31, 2021
+334,981.4
+Year ended
+March 31, 2020
+125,319.3
+32,530.0
+22,424.3
+128,032.1
+Tax expense:
+Profit before tax but after exceptional item
+Exceptional Item
+Profit before exceptional item and tax
+Revenue from operations
+Year ended
+March 31, 2021
+Consolidated
+Standalone
+(in Million)
+FINANCIAL RESULTS
+Your Directors take pleasure in presenting the Twenty-Ninth Annual Report and Company's Audited Financial Statements
+for the financial year ended March 31, 2021.
+Board's Report
+CARE
+Sun Pharmaceutical Industries Limited
+33
+Annual Report 2020-21
+71,055.1
+• Enhance presence in high growth markets
+placed for your approval at the ensuing 29th Annual General
+Meeting.
+• Sustained focus on key brands
+Global Consumer Healthcare Business 1,7,8
+In RoW markets, Sun Pharma offers an expanding products
+suite, including injectables and hospital products as well
+as products for the retail market. It has established local
+manufacturing footprint in Canada, Japan, Australia, Israel
+and Hungary and follows a distribution-led growth model
+focused on development and commercialisation of complex
+generics and differentiated products to drive sustainable
+and profitable progress.
+Sun Pharma is among the leading Indian pharmaceutical
+companies operating in Western Europe, Canada, Japan, as
+well as Australia & New Zealand (ANZ). These markets are
+characterised by an ageing population and an increasing
+incidence in chronic ailments and lifestyle diseases,
+alongside government efforts to tighten the healthcare
+budget.
+Indian companies in RoW
+Markets have local
+manufacturing
+footprint
+Revenue in FY21
+Revenue share
+Leading
+5
+*48,191 Mn
+15%
+Top 10
+Rest of the World (ROW): Western Europe, Canada, Japan, Australia, New Zealand (ANZ) and Other Markets
+• Enhance product basket in emerging markets
+• Gain critical mass across key markets
+Roadmap
+DECLARATION BY INDEPENDENT DIRECTORS
+Pharma's emerging markets revenues was 5.1%, the
+constant currency growth was higher, at 6.4%
+• Many emerging market currencies showed higher
+volatility, given the global impact of the pandemic in
+these markets. While the reported growth for Sun
+• Revenues from emerging markets grew by 5.1% to
+*57,834 Million
+FY21 Highlights
+Sun Pharma is the one of the leading Indian pharmaceutical
+companies in the emerging markets. The Company
+sells its products in ~80 global markets, with a focus
+on Romania, Russia, South Africa, Brazil, Mexico and
+other complementary and affiliated markets. It has local
+manufacturing units across Bangladesh, South Africa,
+Malaysia, Romania, Egypt, Nigeria and Russia, which
+provides increased flexibility in servicing these markets.
+Statutory Reports
+Management Discussion and Analysis
+• Maintain leadership in existing markets through focus on
+innovative solutions and brand extensions
+• Focus on profitable growth
+20+
+• Sun Pharma entered into an exclusive licencing and
+distribution agreement for ILUMYA™ with Hikma
+Pharmaceuticals PLC (Hikma) for the Middle East &
+North Africa (MENA) region. Under this agreement,
+Hikma will be responsible for the registration and
+commercialisation of ILUMYA in these markets.
+Countries
+Roadmap
+Consumer healthcare
+• We expanded the launch of Volini Joint Xpert Gel to more
+locations in the country and introduced the Abzorb T
+Cream, which further expands the dermatology portfolio
+• In India, the consumer business revenue recorded
+double-digit growth, driven mainly by higher sales of
+Revital-H, which was a result of increased consumption
+of vitamins, given the COVID-19 pandemic
+As per IQVIA, Sun Pharma's key consumer healthcare
+brands - Volini and Revital H - are ranked 23rd and 63rd,
+respectively in the Indian pharmaceutical market. The
+Indian distribution network spans 1,000+ cities and
+towns, supported by ~400,000 retail outlets. Globally, the
+Company has strong pharmacy reach in Russia, Romania,
+Nigeria and Myanmar for its OTC brands.
+Sun Pharmaceutical Industries Limited
+CARE
+29
+Annual Report 2020-21
+Nigeria and Myanmar, with a portfolio, including over-
+the-counter (OTC) brands in the Vitamins, Mineral &
+Supplements (VMS), Cold & Flu, Analgesics, Digestive and
+Dermatology categories.
+Sun Pharma is present in countries like Romania, Russia,
+South Africa, Nigeria, Myanmar, Ukraine, Poland, Thailand,
+Belarus, Kazakhstan, Morocco, UAE and Oman. The
+Company enjoys strong brand equity in in India, Romania,
+Retail outlets in India where
+Company's products are available
+Brands
+FY21 Highlights
+~400,000
+20+
+companies in India, Romania,
+FY21 Highlights
+Nigeria and Myanmar
+• Growth driven mainly by Western Europe, Canada and
+Australia markets
+• Revenue from RoW markets increased by 6.6% to
+48,191 Million
+Roadmap
+• Ramp-up ILUMYA prescriptions in Japan and Australia
+•
+Evaluate newer markets in RoW for commercialising the
+specialty portfolio
+• Launch differentiated generics in key markets
+• Sun Pharma launched ILUMYA in Japan for the treatment
+of plaque psoriasis in adult patients who have an
+inadequate response to conventional therapies. This is
+Sun Pharma's first innovative drug to be launched in the
+Japanese market
+30.12
+Refer Note 2
+Whole-time Director
+Non-executive and Non-Independent Director
+122.69
+Refer Note 3
+2.48
+Non-executive Independent Director
+Non-executive Independent Director
+Non-executive Independent Director
+Non-executive Independent Director
+Non-executive Independent Director
+Dr. Pawan Goenka(b)
+Ms. Rama Bijapurkar(b)
+Key Managerial Personnel:
+4.20
+15.79
+1.14
+0.00
+Whole-time Director
+Refer Note 4
+Refer Note 1
+Mr. Dilip S. Shanghvi
+-20.00
+Name of Director and Key
+Managerial Personnel
+Designation
+each Director to
+median remuneration
+of employees
+Increase/ (decrease) in
+Remuneration (a) in the
+FY21 (in percentage)
+Directors:
+Mr. Israel Makov
+Mr. Sailesh T. Desai
+Mr. Kalyanasundaram
+Subramanian
+Mr. Sudhir V. Valia
+Ms. Rekha Sethi
+Mr. Vivek Chaand Sehgal
+Mr. Gautam Doshi
+Non-executive Chairman
+Managing Director
+1.53
+85.31
+4.39
+For and on behalf of the Board of Directors
+Not Applicable
+(All the details of remuneration given above are as per Form 16 as per Income Tax Act, and the ratios are calculated on that basis.)
+Ratio of
+remuneration (a) of
+Place: Israel
+Date: May 27, 2021
+Israel Makov
+Chairman
+(DIN: 05299764)
+(v) It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial
+Personnel and other Employees.
+Annual Report 2020-21
+Sun Pharmaceutical Industries Limited
+CARE
+Annexure - B1
+To,
+FORM NO. MR-3
+SECRETARIAL AUDIT REPORT
+For the Financial Year Ended 31st March 2021.
+43
+Average percentage increase made in the salaries of employees other than the managerial personnel in the financial
+year ending March 31, 2021 was approximately 8.21% and the average increase in the managerial personnel
+remuneration (basis CTC) was 6.16%.
+(iv) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last
+financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof
+and point out if there are any exceptional circumstances for increase in the managerial remuneration:
+The percentage increase in the median remuneration of employees in the FY21 (Median -2021/Median 2020): 3.98%
+(iii) The number of permanent employees on the rolls of the Company (on standalone basis) as on March 31, 2021: 18193
+Not Applicable
+Not Applicable
+Chief Financial Officer
+Company Secretary
+Mr. C.S. Muralidharan
+Mr. Sunil Ajmera
+6.51
+Refer Note 5
+5.97
+Refer Note 5
+(a) Remuneration to Non-Executive Directors consists only of sitting fees and is based on the number of meetings attended during the year.
+No commission was paid to Non-Executive Directors for the FY 21.
+(b) Dr. Pawan Goenka and Ms. Rama Bijapurkar have been appointed as an Additional Independent Directors effective from May 21, 2021
+i.e. after the end of FY21.
+Not Applicable
+Not Applicable
+Note 1: The Bonus of previous year was paid in the current year and the same was reflected in his current year's Form 16. However, no such
+component was there in the Form 16 for FY 20 as in the year previous to FY 20 (i.e. FY 19), Mr. Dilip Shanghvi was paid only 1/- towards
+remuneration. Accordingly, on comparison of remuneration as per Form 16 of FY 20 and FY 21, the increase comes to 37.20%, however the
+actual increase in Mr. Dilip Shanghvi's total remuneration (basis CTC) for FY 21 was 7%.
+Note 2: The Bonus of previous year was paid in the current year and the same was reflected in his current year's Form 16. Hence, on
+comparison of remuneration as per Form 16 of FY 20 and FY 21, the increase comes to 12.59%, however the actual increase in Mr. Sailesh T.
+Desai's total remuneration (basis CTC) for the FY 21 was 7%.
+Note 3: In the FY 20, the remuneration of Mr. Kalyanasundaram Subramanian was for part of the year w.e.f. July 04, 2019 and in FY 21, he
+has received remuneration for the full year. Further, Bonus and Leave Encashment of previous year paid in the current year and the same
+was reflected in his current year's Form 16. Hence, on comparison of remuneration as per Form 16 of FY 20 and FY 21, the increase comes
+to 46.30%, however the actual increase in Mr. Kalyanasundaram Subramanian's total remuneration (basis CTC) for the FY 21 was 4.48%.
+Note 4: Mr. Sudhir Valia had stepped down from the position of Whole-time Director of the Company with effect from May 29, 2019 and
+he became a Non-Executive Non-Independent Director of the Company thereafter. The amounts paid to him in the FY20 and FY21 are not
+comparable as in FY 20, he was paid a remuneration for part of the year including an amount towards full and final settlement and sitting
+fees for the meetings he attended during the FY 20, as Non-Executive Director as against in FY 21, he was paid only the sitting fees.
+Note 5: The percentage increase as mentioned above in the remuneration of Mr. C.S. Muralidharan and Mr. Sunil Ajmera are calculated
+on the basis of their respective Form 16 for FY 20 as compared to FY 21 and is due to Bonus of the previous year paid in the current year,
+however the actual increase in their total remuneration (basis CTC) for the FY 21 was 5.20% and 5.80% respectively.
+42
+Statutory Reports
+Board's Report
+ii)
+9.52
+(i) Ratio of the remuneration of each director to the median remuneration of the employees of the Company for the
+FY21 and the percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary
+during the FY21:
+e)
+Annexure - A
+The Company has developed and implemented an
+integrated Enterprise Risk Management (ERM) Framework
+through which it identifies monitors, mitigates & reports key
+risks that impact the Company's ability to meet its strategic
+objectives. The Company's ERM framework is based on
+the recommendations by the Committee of Sponsoring
+Organisations (COSO) to further the organisation's
+endeavour to strengthen ERM framework and processes
+using best practices. The ERM team engages with all
+Function heads to identify internal and external events
+that may have an adverse impact on the achievement of
+Company's objectives and periodically monitors changes
+in both internal and external environment leading to
+emergence of a new threat/risk. These risks are captured
+in a risk register with all the relevant information such as
+risk description, root cause and any existing mitigation
+plans. The risk register is refreshed semi-annually. Risks
+are categorised into Strategic, Financial, Operational,
+Compliance & Reputational. ERM risk assessments covering
+Company's various businesses and functions are a key input
+for the annual internal audit program. During FY21, the
+focus was on reviewing effectiveness of actions taken to
+mitigate business, cyber security and other operational &
+Compliance risks.
+INTERNAL FINANCIAL CONTROLS
+The Company believes that internal control is a prerequisite
+of governance and that action emanating out of agreed
+business plans should be exercised within a framework
+of checks and balances. The Company has a well-
+established internal control framework, which is designed
+to continuously assess the adequacy, effectiveness and
+efficiency of financial and operational controls. The
+management is committed to ensuring an effective internal
+control environment, commensurate with the size and
+complexity of the business, which provides an assurance
+Annual Report 2020-21
+39
+Sun Pharmaceutical Industries Limited
+CARE
+on compliance with internal policies, applicable laws,
+regulations and protection of resources and assets.
+Global Internal Audit
+An independent and empowered Global Internal Audit
+Function (GIA) at the corporate level with support from
+a Big 4 / equally reputed audit firm, wherever required,
+carries out risk-focused audits. GIA audits all businesses
+(both in India and overseas) to ensure that business process
+controls are adequate and are functioning effectively.
+These reviews include financial, operational and compliance
+controls and risk mitigation plans. The Company's operating
+management closely monitors the internal control
+environment and ensures that the recommendations are
+effectively implemented. The Audit Committee of the
+Board monitors performance of the Internal Audit Function,
+periodically reviews key findings and provides strategic
+guidance.
+GIA's functioning is governed by the Audit Charter, duly
+approved by the Audit Committee of the Board, which
+stipulates matters contributing to the proper and effective
+conduct of the audit. The audit processes are fully
+automated on 'SunScience' tool which integrates Internal
+Audits, Automated follow-ups for closure of observations,
+Internal Financial Controls (IFC) and Enterprise Risk
+Management (ERM) modules. ERM Risk assessments are a
+key input for the annual audit program.
+CORPORATE SOCIAL RESPONSIBILITY
+In compliance with the requirements of Section 135
+of the Act read with the Companies (Corporate Social
+Responsibility Policy) Rules, 2014, the Board of Directors
+have constituted a Corporate Social Responsibility (CSR)
+Committee. The details of membership of the Committee
+and the meetings held are detailed in the Corporate
+Governance Report, forming part of this Report. On the
+recommendation of the Corporate Social Responsibility
+Committee, the Board of Directors at its meeting held on
+May 27, 2021 has approved and adopted the revised CSR
+Policy in line with the requirements of the Companies
+(Corporate Social Responsibility Policy) Amendment Rules,
+2021. The CSR Policy of the Company is available on the
+website of the Company and can be accessed through the
+web link: https://sunpharma.com/policies/
+During the year, the Company has spent $269.504 Million
+which exceeds 2% of the average net profits of the
+Company in the three preceding financial years. The annual
+report on CSR activities containing details of expenditure
+incurred by the Company and brief details on the CSR
+activities are provided in 'Annexure - D' to this Report.
+The Board has accorded its consent to set off the excess
+amount spent by the Company on its CSR Activities against
+the requirement to spend in any subsequent year(s) in terms
+of Section 135 of the Act.
+PUBLIC DEPOSITS
+The Company has not accepted any deposit from the Public
+during the year under review, under the provisions of the
+Act and the rules framed thereunder.
+The Board of Directors has constituted a Risk Management
+Committee which is entrusted with the responsibility
+of overseeing various organisational risks (strategic,
+operational and financial). The Risk Management Committee
+also assesses the adequacy of mitigation plans to address
+such risks. The Corporate Governance Report, which
+forms part of this report, contains the details of Risk
+Management Committee of the Company. An overarching
+Risk Management Policy which was approved by the Board
+is in place.
+MANAGEMENT DISCUSSION AND ANALYSIS
+RISK MANAGEMENT
+AUDIT COMMITTEE COMPOSITION
+Statutory Reports
+Board's Report
+The Auditor's Report for the financial year ended March 31,
+2021, has been issued with an unmodified opinion, by the
+Statutory Auditors.
+Secretarial Auditor
+The Board had appointed KJB & Co. LLP, Practicing
+Company Secretaries, Mumbai to undertake the Secretarial
+Audit of the Company for the financial year ended March
+31, 2021. The Secretarial Audit Report in the Form No.
+MR - 3 for the year is provided as 'Annexure B1' to this
+Report.
+-
+The remarks stated in the Secretarial Audit Report are self
+explanatory and do not require any further explanation. The
+Secretarial Audit Report for the year does not contain any
+other qualification, reservation or adverse remark.
+In accordance with the provisions of Regulation 24A of
+the Listing Regulations, Secretarial Audit of two material
+unlisted Indian subsidiaries of the Company namely, Sun
+Pharma Laboratories Limited (SPLL) and Sun Pharma
+Distributors Limited (SPDL), was undertaken by KJB & Co.
+LLP, Practicing Company Secretaries, Mumbai and
+the Secretarial Audit Reports issued by them to the
+respective Boards of SPLL and SPDL are provided as
+'Annexure - B2' and 'Annexure - B3' respectively to this
+Report. The Secretarial Audit Reports for these material
+unlisted Indian subsidiaries do not contain any qualification,
+reservation or adverse remark.
+Cost Auditor
+The Board has appointed Messrs B. M. Sharma &
+Associates, Cost Accountants, Pune (Firm's Registration No.
+100537) as Cost Auditor of the Company for conducting
+Cost Audit in respect of Bulk Drugs & Formulations of your
+Company for the financial year 2021-22.
+The Company is required to maintain Cost Records as
+specified by the Central Government under Section 148(1)
+of the Act and accordingly, such accounts and records are
+made and maintained by the Company.
+SECRETARIAL STANDARDS
+The Company has complied with the applicable Secretarial
+Standards as amended from time to time.
+LOANS, GUARANTEES & INVESTMENTS
+The particulars of loans, guarantees and investments have
+been disclosed in the Financial Statements.
+RELATED PARTY TRANSACTIONS
+The policy on Related Party Transactions as approved
+by the Board is available on the website of the Company
+and can be accessed through the web link: http://www.
+sunpharma.com/policies. All contracts/ arrangements/
+transactions entered by the Company during the year under
+review with the related parties were in the ordinary course
+of business and on an arm's length basis.
+As required under Section 134(3)(h) of the Act, details of
+transactions entered with related parties under the Act
+exceeding ten percent of the annual consolidated turnover
+as per the last audited financial statements are given in
+Form AOC-2 provided as 'Annexure - C' to this Report.
+The details pertaining to composition of Audit Committee
+are included in the Corporate Governance Report, which
+forms part of this Report.
+The Management Discussion and Analysis as prescribed
+under Part B of Schedule V read with Regulation 34(3) of
+the Listing Regulations is provided in a separate section and
+forms part of this Report.
+CORPORATE GOVERNANCE REPORT
+Report on Corporate Governance and Certificate of the
+Auditors of the Company regarding compliance of the
+conditions of Corporate Governance as stipulated in Part C
+of Schedule V of the Listing Regulations, are provided in a
+separate section and forms part of this Report.
+The consolidated financial statements for the year ended
+March 31, 2021 have been prepared in accordance with
+Indian Accounting Standards (Ind AS) notified under the
+Companies (Indian Accounting Standards) Rules, 2015.
+CREDIT RATING
+ICRA Ltd. has reaffirmed the highest credit rating of '[ICRA]
+A1+'/'[ICRA] AAA(Stable)' for the bank facilities, long term/
+short term borrowings and commercial paper programs of
+the Company.
+Further, CRISIL Ltd. has also reaffirmed the highest credit
+rating of 'CRISIL A1+ and CRISIL AAA/Stable' for short term
+& long term bank facilities and commercial paper programs
+of the Company.
+BUSINESS RESPONSIBILITY REPORTING
+The Business Responsibility Report of the Company for
+the year ended March 31, 2021, forms part of the Annual
+Report and is also made available on the website of the
+Company at https://sunpharma.com/investors-annual-
+reports-presentations/
+ACKNOWLEDGEMENTS
+Your Directors wish to thank all stakeholders, employees
+and business partners, Company's bankers, medical
+professionals and business associates for their continued
+support and valuable cooperation.
+The Directors also wish to express their gratitude to
+investors for the faith that they continue to repose in the
+Company.
+For and on behalf of the Board of Directors
+Israel Makov
+Chairman
+(DIN: 05299764)
+Place: Israel
+Date: May 27, 2021
+Annual Report 2020-21
+41
+Sun Pharmaceutical Industries Limited
+CARE
+CONSOLIDATED ACCOUNTS
+the Directors have devised proper systems to ensure
+compliance with the provisions of all applicable laws
+and that such systems were adequate and operating
+effectively.
+the Directors have laid down internal financial controls
+to be followed by the Company and that such internal
+financial controls are adequate and were operating
+effectively; and
+the Directors have prepared the annual accounts on a
+going concern basis;
+CONSERVATION OF ENERGY, TECHNOLOGY
+ABSORPTION AND FOREIGN EXCHANGE EARNINGS
+AND OUTGO
+The information on conservation of energy, technology
+absorption and foreign exchange earnings and outgo as
+stipulated under Section 134(3)(m) of the Act read with Rule
+8 of the Companies (Accounts) Rules, 2014, is provided as
+'Annexure E' to this Report.
+SIGNIFICANT AND MATERIAL ORDERS PASSED BY
+THE REGULATORS OR COURTS OR TRIBUNALS
+There are no significant and material orders passed by the
+regulators or courts or tribunals which impact the going
+concern status and Company's operations in future.
+WHISTLE BLOWER POLICY/VIGIL MECHANISM
+To create enduring value for all stakeholders and ensure
+the highest level of honesty, integrity and ethical behaviour
+in all its operations, the Company has adopted a 'Global
+Whistle Blower Policy' for Sun Pharmaceutical Industries
+Limited and all its subsidiaries, in addition to the existing
+Global Code of Conduct that governs the actions of its
+employees. Further details on vigil mechanism of the
+Company are provided in the Corporate Governance
+Report, forming part of this Report.
+DIRECTORS' RESPONSIBILITY STATEMENT
+Pursuant to the requirements under Section 134(5) read
+with Section 134(3)(c) of the Act, with respect to Directors'
+Responsibility Statement, it is hereby confirmed that:
+a)
+b)
+Information required under Section 197 of the Act Read with Rule 5(1) of the Companies (Appointment
+and Remuneration of Managerial Personnel) Rules, 2014.
+in the preparation of the annual accounts for the
+financial year ended March 31, 2021, the applicable
+accounting standards have been followed and there
+are no material departures from the same;
+40
+Statutory Reports
+Board's Report
+c)
+d)
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of SEBI
+(Listing Obligations and Disclosure Requirements) Regulations, 2015]
+f)
+and estimates that are reasonable and prudent so as
+to give a true and fair view of the state of affairs of the
+Company as at March 31, 2021 and of the profit of the
+Company for the year ended on that date;
+the Directors have taken proper and sufficient care
+for the maintenance of adequate accounting records
+in accordance with the provisions of the Act for
+safeguarding the assets of the Company and for
+preventing and detecting fraud and other irregularities;
+the Directors have selected such accounting policies
+and applied them consistently and made judgments
+The Members,
+The Securities Contracts (Regulation) Act, 1956
+("SCRA") and the rules made thereunder;
+Vadodara, Gujarat.
+The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India Act,
+1992 ('SEBI Act'):
+a. The Securities and Exchange Board of India (Issue
+and Listing of Debt Securities) Regulations, 2008
+- Not applicable to the Company for the year
+under review;
+b.
+C.
+d.
+e.
+We have examined the books, papers, minute books, forms
+and returns filed and other records maintained by the
+Company for the financial year ended on 31st March 2021,
+according to the provisions of:
+f.
+i.
+The Companies Act, 2013 (the Act) and the rules made
+thereunder;
+g.
+ii.
+The Securities Contracts (Regulation) Act, 1956
+('SCRA') and the rules made thereunder; Not
+applicable to the Company for the year under review;
+iii.
+The Depositories Act, 1996 and the Regulations and
+Bye-laws framed thereunder; Not applicable to the
+Company for the year under review;
+h.
+iv.
+V.
+Foreign Exchange Management Act, 1999 and the
+rules and regulations made thereunder to the extent
+applicable during the period under review of Overseas
+Direct Investment; External Commercial Borrowings
+(Regulations relating to Foreign Direct Investment not
+attracted to the Company for the year under review);
+Based on our verification of the Company's books, papers,
+minute books, forms and returns filed and other records
+maintained by the company and also the information
+provided by the Company, its officers, agents and
+authorized representatives during the conduct of secretarial
+audit, we hereby report that in our opinion, the company
+has, during the audit period covering the financial year
+ended on 31st March 2021, complied with the statutory
+provisions listed hereunder and also that the Company
+has proper Board-processes and compliance-mechanism
+in place to the extent, in the manner and subject to the
+reporting made hereinafter:
+Mumbai.
+Firm Unique Identification No. - L2020MH006600
+Peer Review Certificate No. - 934/2020
+Alpeshkumar Panchal
+Partner
+ACS No.: 49008
+CP No.: 20120
+UDIN: A049008C000380515
+Date: May 27, 2021
+Place: Vadodara
+46
+Statutory Reports
+Board's Report
+FORM NO. MR-3
+SECRETARIAL AUDIT REPORT
+For the Financial Year Ended 31st March 2021.
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
+Annexure - B2
+To,
+The Members,
+Sun Pharma Laboratories Limited,
+We have conducted the Secretarial Audit of the
+compliances of applicable statutory provisions and the
+adherence to good corporate governance practice by
+Sun Pharma Laboratories Limited ("the Company"). The
+Secretarial Audit was conducted in a manner that provided
+us a reasonable basis for evaluating the corporate conducts
+/ statutory compliances and expressing our opinion
+thereon.
+Practicing Company Secretary
+i.
+-
+On verification of minutes, we have not found any
+dissent/disagreement on any of the agenda items
+discussed in the Board and Committee meetings from
+any of the Directors and all the decisions are carried
+through.
+Based on the information received and records maintained,
+we further report that there are adequate systems and
+processes in the Company commensurate with the size
+and operations of the Company to monitor and ensure
+compliance with applicable laws, rules, regulations and
+guidelines.
+We further report that, having regard to the compliance
+system prevailing in the Company and on examination of
+the relevant documents and records in pursuance thereof,
+on the basis of the representations made by the respective
+plant heads of R&D centers, the Company has identified
+and complied with the following laws applicable to the
+Company:
+• Drugs and Cosmetics Act, 1940;
+• Factories Act, 1948.
+Note: We relied on the representation made to us by the
+management wherever required due to several restrictions
+imposed by various State government on the travel,
+movement and transportation considering public health
+and safety measures due to Covid -19 pandemic, which
+had impact on the audit assessment due to limited access
+to information / documents / data as required for audit
+assessment.
+For KJB & CO LLP,
+Practicing Company Secretaries
+Firm Unique Identification No.-L2020MH006600
+Peer Review Certificate No.-934/2020
+Alpeshkumar Panchal
+Partner
+ACS No. 49008
+C. P. No. 20120
+UDIN: A049008C000374841
+Date: May 26, 2021
+Place: Vadodara.
+This report is to be read with our letter of even date which
+is annexed as Annexure 1 and forms an integral part of this
+report.
+48
+Adequate notice of at least seven days was given
+to all directors to schedule the Board Meetings and
+Meetings of Committees except in some cases where
+the meeting was held on a shorter notice. Agenda
+and detailed notes on agenda were sent in advance
+in adequate time before the meetings and a system
+exists for Directors for seeking and obtaining further
+information and clarifications on the agenda items
+before the meeting and for meaningful participation at
+the meeting.
+The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015
+3.
+1. The Board of Directors of the Company is duly
+constituted. The changes in the composition of the
+Board of Directors, if any, that took place during the
+period under review were carried out in compliance
+with the provisions of the Act.
+Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015 - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011- Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2018 - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2009
+Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Buyback of Securities) Regulations, 2018 - Not
+applicable to the Company for the year under
+review;
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993, regarding the Companies Act
+and dealing with client - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India (Share
+based Employee Benefits) Regulations, 2014
+Not applicable to the Company for the year
+under review;
+Annual Report 2020-21
+47
+Sun Pharmaceutical Industries Limited
+CARE
+We have also examined compliance with the applicable
+clauses of the Secretarial Standards with respect to meeting
+of Board of Directors (SS-1) and General Meetings (SS-2)
+issued by The Institute of Company Secretaries of India
+under the provisions of Companies Act, 2013.
+During the year under review, the Company has complied
+with the provisions of the Act, Rules, Regulations,
+Guidelines, Standards etc. mentioned above to the extent
+applicable.
+We further report that:
+2.
+For, KJB & CO LLP,
+The Secretarial Audit report is neither an assurance
+as to the future viability of the Company nor of the
+efficacy or effectiveness with which the management
+has conducted the affairs of the Company.
+The compliance of the provisions of Corporate and
+other applicable laws, rules, regulations, standards is
+the responsibility of management. Our examination
+was limited to the verification of procedure on test
+basis.
+i.
+The Companies Act, 2013 ("the Act") and the rules
+made thereunder;
+ii.
+iii.
+The Depositories Act, 1996 and the Regulations and
+Bye-laws framed thereunder;
+i.
+The Securities and Exchange Board of India (Issue
+and Listing of Debt Securities) Regulations, 2008
+- Not applicable to the Company for the year
+under review.
+iv. Foreign Exchange Management Act, 1999 and the
+rules and regulations made thereunder to the extent
+of Foreign Direct Investment, Overseas Direct
+Investment and External Commercial Borrowings;
+V.
+The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India
+("SEBI") Act, 1992:
+We have also examined compliance with the applicable
+clauses of the
+a.
+b.
+Secretarial Standards with respect to meeting of Board
+of Directors (SS-1) and General Meetings (SS-2) issued
+by the Institute of Company Secretaries of India under
+the provisions of Companies Act, 2013;
+SEBI circular No. SEBI/HO/DDHS/DDHS/
+CIR/P/2019/115 dated 22nd October 2019 read
+44
+Statutory Reports
+Board's Report
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993, regarding the Companies Act
+and dealing with client - Not applicable to the
+Company;
+with SEBI circular No. SEBI/HO/DDHS/DDHS/
+CIR/P/2019/167 dated 24th December 2019 ("SEBI
+CP Circulars”) in respect of framework for listing of
+Commercial papers.
+The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2009
+- Not applicable to the Company for the year
+under review;
+- Not applicable to the Company for the year
+under review;
+We have conducted the Secretarial Audit of the
+compliances of applicable statutory provisions and the
+adherence to good corporate governance practice by
+Sun Pharmaceutical Industries Limited ("the Company").
+Secretarial Audit was conducted in a manner that provided
+us a reasonable basis for evaluating the corporate conducts
+/ statutory compliances and expressing our opinion
+thereon.
+Based on our verification of the Company's books, papers,
+minutes books, forms and returns filed and other records
+maintained by the Company and also the information
+provided by the Company, its officers, agents and
+authorized representatives during the conduct of secretarial
+audit, we hereby report that in our opinion, the Company
+has, during the audit period covering the financial year
+ended on 31st March 2021, complied with the statutory
+provisions listed hereunder and also that the Company has
+proper Board-processes and compliance mechanism in place
+to the extent, in the manner and subject to the reporting
+made hereinafter:
+We have examined the books, papers, minutes books,
+forms and returns filed and other records maintained by the
+Company for the financial year ended on 31st March 2021,
+according to the provisions of:
+a.
+b.
+C.
+d.
+e.
+f.
+g.
+h.
+The Securities and Exchange Board of India
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015;
+The Securities and Exchange Board of India
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011;
+The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015;
+The Securities and Exchange Board of India (Buy-
+back of Securities) Regulations, 2018;
+The Securities and Exchange Board of India (Share
+Based Employee Benefits) Regulations, 2014
+The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2018 - Not applicable to the
+Company for the year under review;
+The Company has complied with the provisions of the
+Act, Rules, Regulations, Guidelines etc. mentioned
+above however in respect of compliances relating to listed
+commercial papers in pursuance of SEBI CP Circulars namely (a)
+while the Company has fulfilled the payment obligations as per
+the redemption schedule, there are instances of delay in filing of
+certificates as required under para 2.4 of Annexure II of SEBI CP
+Circulars which was inadvertent delay as informed to us and (b)
+the Company has annually submitted the quarterly certificates
+required under para 4 of Annexure II of SEBI CP Circulars
+presuming that these compliances can be done annually.
+We further report that:
+1.
+Sun Pharmaceutical Industries Limited
+CARE
+Annexure-1
+To,
+The Members,
+Sun Pharmaceutical Industries Limited,
+Vadodara, Gujarat.
+Our report of even date is to be read along with this letter.
+1.
+2.
+3.
+4.
+Maintenance of secretarial records is the responsibility
+of the management of the Company. Our responsibility
+is to express an opinion on these secretarial records
+based on our audit.
+We have followed the audit practices and processes as
+were appropriate to obtain reasonable assurance about
+the correctness of the contents of the Secretarial
+records. The verification was done on test basis to
+ensure that correct facts are reflected in secretarial
+records. We believe that the processes and practices
+we followed provide a reasonable basis for our opinion.
+We have not verified the correctness and
+appropriateness of financial records and Books of
+Accounts of the Company.
+Wherever required, we have obtained the
+Management representation about the compliance of
+laws, rules and regulations and happening of events
+etc.
+5.
+6.
+45
+Annual Report 2020-21
+This report is to be read with our letter of even date which
+is annexed as Annexure 1 and forms an integral part of this
+report.
+Date: May 27, 2021
+Place: Vadodara
+2.
+3.
+The Board of Directors of the Company is duly
+constituted with proper balance of Executive
+Directors, Non-Executive Directors, Independent
+Directors and Woman Directors.
+Adequate notice of at least seven days was given
+to all directors to schedule the Board Meetings and
+Meetings of Committees except in two cases where
+the meetings were convened on a shorter notice.
+Agenda and detailed notes on agenda were sent
+in advance in adequate time before the meetings
+and a system exists for Directors for seeking and
+obtaining further information and clarifications on the
+agenda items before the meeting and for meaningful
+participation at the meeting.
+On verification of minutes, we have not found any
+dissent disagreement on any of the agenda items
+discussed in the Board and Committee meetings from
+any of the Directors and all the decisions are carried
+through.
+Based on the information received and records maintained,
+we further report that there are adequate systems and
+processes in the Company commensurate with the size
+and operations of the Company to monitor and ensure
+compliance with applicable laws, rules, regulations and
+guidelines.
+We further report that, having regard to the compliance
+system prevailing in the Company and on examination of
+the relevant documents and records in pursuance thereof,
+on the basis of the representations made by the respective
+plant heads, the Company has identified and complied with
+the following laws applicable to the Company:
+Sun Pharmaceutical Industries Limited,
+• Drugs and Cosmetics Act, 1940 and rules made
+thereunder;
+We further report that, during the period under review,
+the Company and the then KMPs and an officer had
+filed settlement applications under SEBI (Settlement
+Proceedings) Regulations, 2018 on July 18, 2020 to
+expeditiously close the matter, without admitting or
+denying the finding of fact and conclusion of law in respect
+of alleged violations of certain provisions of SEBI (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015, relevant for timely compliances of disclosures and
+approvals pertaining to related parties and have paid the
+settlement charges recommended by SEBI. Subsequently,
+the adjudication proceedings initiated vide show-cause
+notices dated May 19, 2020 were disposed of in terms of
+section 15JB of the SEBI Act, 1992 and section 23JA of
+the SCRA read with regulation 23(1) of SEBI (Settlement
+Proceedings) Regulations, 2018.
+Note: We relied on the representation made to us by the
+management wherever required due to several restrictions
+imposed by the various state governments on the travel,
+movement and transportation considering public health
+and safety measures due to Covid-19, which had impact on
+the audit assessment due to limited access to information /
+documents/data as required for audit assessment.
+For KJB & CO LLP,
+Practicing Company Secretaries
+Firm Unique Identification No. - L2020MH006600
+Peer Review Certificate No. - 934/2020
+Alpeshkumar Panchal
+Partner
+ACS No.: 49008
+CP No.: 20120
+UDIN: A049008C000380515
+• Factories Act, 1948.
+Not Applicable
+Amount transferred to
+Unspent CSR Account
+under section 135 (6)
+Annexure - 1
+(5)
+Location of the project
+(6)
+Amount
+spent for
+(7)
+Mode of
+(8)
+Mode of implementation -
+implementati Through implementing agency
+on - Direct
+CSR registration
+number
+CSR00002452
+Local area
+the project
+(4)
+of activities in
+Item from the list
+(3)
+UT of Dadra and
+Nagar Haveli
+Dadra and Nagar Haveli
+0.617
+No
+Rogi Kalyan
+Samiti
+CSR00004127
+No. (i)
+schedule VII to the
+Annual Report 2020-21
+(2)
+SI. Name of the
+No. Project
+11. Rural Infrastructure
+Development Projects
+57
+12. Roadside Plantation
+Initiatives
+13. Construction of Mini
+Water Works in Rural
+Communities
+(1)
+(Yes/No).
+State.
+District.
+and Punjab
+Vadodara and Nawanshahr
+Drinking Water Yes
+Gujarat
+Panchmahal
+0.311
+No
+under Item
+No.(iv)
+Society
+For Village
+Development in
+Petrochemicals
+Area (SVADES)
+14. Donate a Plate Campaign
+Eradicating
+No
+under Item
+No. (i)
+Yes
+Yes
+Maharashtra, Gujarat Ahmednagar, Bharuch,
+(in
+(Yes/No).
+Name.
+Act.
+Million.)
+Rural
+Yes
+0.450
+Development
+Ahmednagar, Panchmahal
+and Bharuch
+0.488
+Yes
+under Item No.
+(x)
+Environment
+Yes
+Maharashtra and
+Gujarat
+Vadodara (Gujarat)
+Yes
+1.050
+under Item No.
+(xii)
+Education under No
+Item No. (ii)
+Maharashtra
+Pune
+25.000
+No
+PAN India
+Agricultural
+Development
+Trust
+Healthcare
+under Item
+No. (i)
+Yes
+Maharashtra, Gujarat,
+Punjab, Himachal
+Ahmednagar, Panchmahal,
+SAS Nagar, SBS Nagar,
+Paonta Sahib, Dewas,
+22.708
+CSR00001043
+No
+No
+Mumbai
+(5)
+Location of the project
+the project
+(in
+Million.)
+100.00
+Name.
+No
+Shantilal
+Shanghvi
+Foundation
+104.296
+Yes
+Disaster relief
+CSR registration
+number
+of activities in
+schedule VII to the
+Act.
+Local area
+(Yes/No).
+State.
+District.
+Healthcare
+under Item
+No. (i)
+Yes
+Maharashtra
+CSR00002593
+Hunger under
+Sun Pharma
+Community
+Society
+Item No. (ii)
+Malnutrition
+under Item
+Yes
+1.241
+Yes
+No. (i)
+Yes
+Education under Yes
+Item No. (ii)
+Panchmahal (Gujarat),
+1.167
+Yes
+Vadodara (Gujarat)
+Education under Yes
+Item No. (ii)
+Healthcare
+under Item
+Gujarat, Tamilnadu,
+Chengalpattu (Tamilnadu),
+Gujarat
+CSR00003635
+1.999
+2.213
+Healthcare
+5. School Infrastructure
+Development Project
+Education under Yes
+Item No. (ii)
+6. School Toilet Construction Education under Yes
+Project
+7. Anganbari Development
+Project
+8. Setting-up of Digital
+Classroom Project
+9. Promotion of Quality of
+Education
+Yes
+10. Provison of medicines
+to combat Covid-19
+Pradesh, and
+Tamilnadu
+Gujarat, Tamilnadu,
+UT of Dadra & Nagar
+Haveli, Himachal
+Pradesh, Punjab
+Gujarat, Tamilnadu, UT
+of Dadra and Nagar
+Haveli
+Gujarat, Tamilnadu,
+Bharuch, Vadodara, Bhind,
+and Chengalpattu
+Pachmahal (Gujarat),
+Chengalpattu (Tamilnadu),
+Dadra and Nagar Haveli,
+Sirmour (H.P.), Solan (H.P.)
+and Nawanshahr (Punjab)
+Pachmahal (Gujarat),
+Chengalpattu (Tamilnadu),
+Dadra and Nagar Haveli
+Vadodara, Maduranthakam
+Infection
+Through implementing agency
+Uttar Pradesh and
+Delhi
+0.298
+NA
+NA
+ΝΑ
+ΝΑ
+ΝΑ
+43.708
+NA
+NA
+NA
+NA
+110.035
+ΝΑ
+NA
+NA
+ΝΑ
+39.362
+ΝΑ
+NA
+NA
+Amount remaining
+to be spent in
+succeeding financial
+Name of the
+Date of
+years.
+Fund
+(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
+transfer
+2. 2018-19
+3.
+2019-20
+TOTAL
+ΝΑ
+26.965
+ΝΑ
+NA
+1. 2017-18
+(1)
+(2)
+(3)
+Year.
+--------NIL-
+10. IN CASE OF CREATION OR ACQUISITION OF CAPITAL ASSET, FURNISH THE DETAILS RELATING TO THE
+ASSET SO CREATED OR ACQUIRED THROUGH CSR SPENT IN THE FINANCIAL YEAR.
+(a) Date of creation or acquisition of the capital asset(s).
+(b) Amount of CSR spent for creation or acquisition of capital asset
+(c) Details of the entity or public authority or beneficiary under whose name such capital asset is
+registered, their address etc.
+(d) Details of the capital asset(s) created or acquired (including complete address and location of the
+capital asset).
+/Ongoing.
+Nil
+Not Applicable
+Dilip S. Shanghvi
+Chairman - CSR Committee and Managing Director
+Date: May 26, 2021
+(DIN: 00005588)
+Sudhir V. Valia
+Member - CSR Committee and Director
+(DIN: 00005561)
+58
+11. REASON(S), IF THE COMPANY HAS FAILED TO SPEND TWO PER CENT OF THE AVERAGE NET PROFIT AS
+PER SECTION 135(5)
+Amount transferred to any fund
+specified under Schedule VII as per
+section 135(6), if any.
+project -
+Completed
+Amount spent
+on the project
+in the reporting
+Financial Year.
+(4)
+(5)
+(6)
+(7)
+(8)
+(9)
+Status of the
+Cumulative amount
+spent at the end of
+reporting Financial
+Financial Year
+Name of the
+Project ID.
+No.
+Project.
+in which the
+project was
+commenced.
+Project
+duration.
+Total amount
+allocated for
+the project.
+SI.
+Amount spent
+in the reporting
+Financial Year
+(* In Million).
+Preceding Financial
+No. Year.
+SI.
+Gujarat
+Vadodara
+0.211
+No
+Development
+under Item No.
+18. Rain Water Harvesting
+Projects
+19. Healthcare Programme
+Yes
+TOTAL
+Environment
+under Item
+No.(iv)
+Yes
+Gujarat
+Panchmahal
+0.207
+Yes
+Healthcare
+(x)
+Yes
+17. Renovation of Community Rural
+Centre
+under Item No.
+No
+Love Care
+Foundation
+Item No.(i)
+15. Drinking Water Supply in
+Toansa
+Drinking Water Yes
+Punjab
+(!!)
+Nawanshahr
+Yes
+under Item
+No. (i)
+16. Skill Development Training Vocational Skills Yes
+Madhya Pradesh
+Bhind
+0.264
+Yes
+0.289
+Ghaziabad and East Delhi
+under Item
+Panchmahal, Vadodara,
+SI.
+Amount
+Particulars
+No.
+(i)
+Two percent of average net profit of the company as per section 135(5)
+(in Million)
+Total amount spent for the Financial Year (8b+8c+8d+8e) - 269.504 Million
+(g) Excess amount for set off, if any
+129.810
+(iii) Excess amount spent for the financial year [(ii)-(i)]
+269.504
+139.694
+(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years,
+(v) Amount available for set off in succeeding financial years [(iii)-(iv)]
+if any
+Nil
+139.694
+(a) Details of Unspent CSR amount for the preceding three financial years:
+(ii) Total amount spent for the Financial Year
+Gujarat, Punjab and
+Tamilnadu
+(f)
+(d) Amount spent in Administrative Overheads - *6.539 Million
+0.155
+Yes
+Chengalpattu and
+No. (i)
+Nawanshahr
+262.965
+CSR00005476
+(e) Amount spent on Impact Assessment, if applicable - Not Applicable
+Society
+For Village
+Petrochemicals
+Area (SVADES)
+CSR00002452
+Board's Report
+Statutory Reports
+Sun Pharmaceutical Industries Limited
+CARE
+9.
+Development in
+Mode of implementation -
+(8)
+on - Direct
+(Yes/No).
+2.
+3.
+4.
+Maintenance of secretarial records is the responsibility
+of the management of the Company. Our responsibility
+is to express an opinion on these secretarial records
+based on our audit.
+We have followed the audit practices and processes as
+were appropriate to obtain reasonable assurance about
+the correctness of the contents of the Secretarial
+records. The verification was done on test basis to
+ensure that correct facts are reflected in secretarial
+records. We believe that the processes and practices
+we followed provide a reasonable basis for our opinion.
+We have not verified the correctness and
+appropriateness of financial records and Books of
+Accounts of the Company.
+Wherever required, we have obtained the
+Management representation about the compliance of
+laws, rules and regulations and happening of events
+etc.
+5.
+6.
+The compliance of the provisions of Corporate and
+other applicable laws, rules, regulations, standards is
+the responsibility of management. Our examination
+was limited to the verification of procedure on test
+basis.
+The Secretarial Audit report is neither an assurance
+as to the future viability of the Company nor of the
+efficacy or effectiveness with which the management
+has conducted the affairs of the Company.
+For, KJB & CO LLP,
+Practicing Company Secretary
+Firm Unique Identification No. - L2020MH006600
+Peer Review Certificate No. - 934/2020
+Alpeshkumar Panchal
+1.
+Our report of even date is to be read along with this letter.
+Sun Pharma Distributors Limited,
+Mumbai, Maharashtra
+The Members,
+For KJB & CO LLP,
+Practicing Company Secretaries
+Firm Unique Identification No.-L2020MH006600
+Peer Review Certificate No.-934/2020
+Alpeshkumar Panchal
+Partner
+ACS No. 49008
+C. P. No. 20120
+Partner
+UDIN: A049008C000374993
+Place: Vadodara.
+This report is to be read with our letter of even date which
+is annexed as Annexure 1 and forms an integral part of this
+report.
+Annual Report 2020-21
+51
+Sun Pharmaceutical Industries Limited
+CARE
+Annexure-1
+To,
+Date: May 26, 2021
+ACS No.: 49008
+CP No.: 20120
+UDIN: A049008C000374993
+(Wholly
+owned
+subsidiary)
+2.
+Sun Pharma
+Distributors
+Limited
+(Wholly
+owned
+subsidiary)
+Nature of contracts/
+arrangements/ transactions
+Limited
+Purchase of goods,
+property, plant &
+from contracts with
+customers (net of returns),
+Sale of property, plant
+& equipment, Receiving
+and Rendering of Service,
+Reimbursement of expenses
+paid and expenses received,
+Loan taken and repaid,
+Interest expense, Payment
+towards Lease liabilities,
+Rent income and other
+operative income / other
+income
+Revenue from contracts
+with customers (net of
+returns), Reimbursement
+of expenses received, Loan
+Given and Received back,
+Interest Income, and Rent
+income.
+Duration of
+the contracts/
+arrangements/
+transactions
+On-going
+On-going
+Salient terms of
+the contracts or
+arrangements or
+transactions including
+the value, if any
+The related party
+transactions entered
+during the year
+were in ordinary
+course of business
+and on an arm's
+length basis. The
+aggregate amount of
+transactions for the
+FY21 was 1,66,466
+Million
+equipment, Revenue
+Note: We relied on the representation made to us by the
+management wherever required due to several restrictions
+imposed by the various state government on the travel,
+movement and transportation considering public health
+and safety measures due to Covid-19 pandemic, which
+had impact on the audit assessment due to limited access
+to information / documents / data as required for audit
+assessment.
+Laboratories
+Sun
+Date: May 26, 2021
+Place: Vadodara
+52
+AOC-2
+Statutory Reports
+Board's Report
+Annexure - C
+(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013
+("the Act") and rule 8(2) of the Companies (Accounts) Rules, 2014)
+Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-
+section (1) of section 188 of the Companies Act, 2013 including certain arm's length transactions under third proviso thereto
+Pharma
+1.
+Details of contracts or arrangements or transactions not at arm's length basis - NIL
+Details of material contracts or arrangement or transactions (i.e. exceeding ten percent of the annual consolidated
+turnover as per the last audited financial statements) at arm's length basis
+Sr.
+Name(s) of the
+related party
+No. and nature of
+relationship
+1.
+2.
+• Drugs Price Control Order, 1995 (DPCO)
+• The Drugs & Magic Remedies (Objectionable
+Advertisements) Act, 1954
+• Drugs and Cosmetics Act, 1940
+-
+L2020MH006600
+Firm Unique Identification No.
+Peer Review Certificate No. - 934/2020
+Alpeshkumar Panchal
+Partner
+ACS No.: 49008
+CP No.: 20120
+UDIN: A049008C000374841
+Practicing Company Secretary
+Date: May 26, 2021
+Place: Vadodara
+49
+Sun Pharmaceutical Industries Limited
+CARE
+FORM NO. MR-3
+SECRETARIAL AUDIT REPORT
+For the Financial Year Ended 31st March 2021.
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
+Annual Report 2020-21
+Annexure - B3
+For, KJB & CO LLP,
+The compliance of the provisions of Corporate and
+other applicable laws, rules, regulations, standards is
+the responsibility of management. Our examination
+was limited to the verification of procedure on test
+basis.
+To,
+The Members,
+Sun Pharma Laboratories Limited,
+Mumbai.
+Our report of even date is to be read along with this letter.
+1.
+2.
+3.
+The Secretarial Audit report is neither an assurance
+as to the future viability of the Company nor of the
+efficacy or effectiveness with which the management
+has conducted the affairs of the Company.
+4.
+of the management of the Company. Our responsibility
+is to express an opinion on these secretarial records
+based on our audit.
+We have followed the audit practices and processes as
+were appropriate to obtain reasonable assurance about
+the correctness of the contents of the Secretarial
+records. The verification was done on test basis to
+ensure that correct facts are reflected in secretarial
+records. We believe that the processes and practices
+we followed provide a reasonable basis for our opinion.
+We have not verified the correctness and
+appropriateness of financial records and Books of
+Accounts of the Company.
+Wherever required, we have obtained the
+Management representation about the compliance of
+laws, rules and regulations and happening of events
+etc.
+5.
+6.
+Maintenance of secretarial records is the responsibility
+The related party
+transactions entered
+during the year
+were in ordinary
+course of business
+and on an arm's
+length basis. The
+aggregate amount of
+transactions for the
+FY21 was *32,535.9
+Million
+To,
+Sun Pharma Distributors Limited,
+-
+Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993 regarding the Companies Act
+50
+Statutory Reports
+Board's Report
+and dealing with client - Not applicable to the
+Company for the year under review;
+We have also examined compliance with the applicable
+clauses of the Secretarial Standards with respect to meeting
+of Board of Directors (SS-1) and General Meetings (SS-2)
+issued by The Institute of Company Secretaries of India
+under the provisions of Companies Act, 2013.
+(i)
+During the period under review the Company has complied
+with the provisions of the Act, Rules, Regulations,
+Guidelines, Standards, etc. mentioned above to the extent
+applicable.
+a) The Board of Directors of the Company is duly
+constituted. The changes in the composition of the
+Board of Directors that took place, if any during the
+period under review were carried out in compliance
+with the provisions of the Act;
+b)
+c)
+Adequate notice of at least seven days was given
+to all directors to schedule the Board Meetings and
+Meetings of Committees except in some cases where
+the meeting was held on a shorter notice with the
+consent of all the directors / committee members.
+Agenda and detailed notes on agenda were sent
+in advance in adequate time before the meetings
+and a system exists for Directors for seeking and
+obtaining further information and clarifications on the
+agenda items before the meeting and for meaningful
+participation at the meeting.
+On verification of minutes, we have not found any
+dissent / disagreement on any of the agenda items
+discussed in the Board and Committee meetings from
+any of the Directors and all the decisions are carried
+through.
+Based on the information received and records maintained,
+we further report that there are adequate systems and
+processes in the Company commensurate with the size
+and operations of the Company to monitor and ensure
+compliance with applicable laws, rules, regulations and
+guidelines.
+We further report that, having regard to the compliance
+system prevailing in the Company and on examination
+of the relevant documents and records in pursuance
+thereof, on the basis of the representations made by the
+management, the Company has identified and complied
+with the following law applicable to the Company:
+We further report that:
+The Members,
+(h) The Securities and Exchange Board of India (Issue
+and Listing of Debt Securities) Regulations, 2008
+The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2018 - Not applicable to the
+Company for the year under review;
+Mumbai, Maharashtra.
+We have conducted the secretarial audit of the compliance
+of applicable statutory provisions and the adherence to
+good corporate practices by Sun Pharma Distributors
+Limited ("the Company'). Secretarial Audit was conducted
+in a manner that provided us a reasonable basis for
+evaluating the corporate conducts/statutory compliances
+and expressing our opinion thereon.
+Based on our verification of the Company's books, papers,
+minute books, forms and returns filed and other records
+maintained by the Company and also the information
+provided by the Company, its officers, agents and
+authorized representatives during the conduct of secretarial
+audit, we hereby report that in our opinion, the Company
+has, during the audit period covering the financial year
+ended on March 31, 2021, complied with the statutory
+provisions listed hereunder and also that the Company
+has proper Board-processes and compliance-mechanism
+in place to the extent, in the manner and subject to the
+reporting made hereinafter:
+We have examined the books, papers, minute books, forms
+and returns filed, and other records maintained by the
+Company for the financial year ended on March 31, 2021,
+according to the provisions of:
+(i) The Companies Act, 2013 (the Act) and the rules made
+there under;
+(ii) The Securities Contracts (Regulation) Act, 1956
+('SCRA') and the rules made there under - Not
+applicable to the Company for the year under review;
+(iii) The Depositories Act, 1996 and the Regulations and
+bye-laws framed there under - Not applicable to the
+Company for the year under review;
+(g) The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2009
+- Not applicable to the Company for the year
+under review;
+(iv) Foreign Exchange Management Act, 1999 and the
+rules and regulations made thereunder to extent
+of Foreign Direct Investment, Overseas Direct
+Investment and External Commercial borrowings - Not
+applicable to the Company for the year under review.
+(a) The Securities and Exchange Board of India
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015 - Not applicable to the
+Company for the year under review;
+(b) The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015
+Not applicable to the Company for the year
+under review;
+-
+(c) The Securities and Exchange Board of India
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011 - Not applicable to the
+Company for the year under review;
+(d) The Securities and Exchange Board of India
+(Buyback of Securities) Regulations, 2018 - Not
+applicable to the Company for the year under
+review;
+(e) The Securities and Exchange Board of India (Share
+Based Employee Benefits) Regulations, 2014- Not
+applicable to the Company for the year under
+review;
+(f)
+(v) The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India
+(SEBI)Act, 1992: -
+Amount paid as
+Date(s) of approval by advances, as on
+the Board, if any
+March 31, 2021
+if any
+Nil
+Since these
+transactions were
+in the ordinary
+course of business
+and were on
+arm's length basis,
+approval of the
+Board was not
+applicable.
+Since these
+transactions were
+in the ordinary
+course of business
+and were on
+arm's length basis,
+approval of the
+Board was not
+applicable.
+activities
+Local
+area
+Location of the
+project.
+SI.
+of the
+in
+(Yes/
+Name
+No.
+Project
+Schedule
+VII to the
+Act.
+No).
+State. District.
+(7)
+(8)
+Amount
+allocated
+for the
+project
+(in ).
+Project
+duration.
+Amount spent
+in the current
+financial year
+Item from
+the list of
+(5)
+(a) CSR amount spent or unspent for the financial year:
+Amount Unspent
+129.810 Million
+Nil
+Nil
+*129.810 Million
+Total Amount Spent for the Financial Total Amount transferred to Unspent CSR
+Year
+Account as per section 135(6).
+Amount. Date of transfer.
+(6)
+Name of the Fund
+Date of transfer
+*269.504 Million
+(b) Details of CSR amount spent against ongoing projects for the financial year:
+(1)
+(2)
+(3)
+(4)
+Amount transferred to any fund specified under Schedule VII as
+per second proviso to section 135(5).
+Amount.
+(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years
+(c) Amount required to be set off for the financial year, if any.
+(d) Total CSR obligation for the financial year (7a+7b-7c).
+-NIL-
+(10)
+(2)
+Sl. Name of the
+No. Project
+1. Support towards setting-
+up of Cancer Sanatorium
+Institute, Wadala, Mumbai
+2. Initiatives on Prevention
+of Covid-19 in
+Communities
+3. Infrastructural
+Development for Pharma
+(1)
+Research Laboratory
+(3)
+Item from the list
+(4)
+(6)
+Amount
+spent for
+(7)
+Mode of
+implementati
+4. Mobile Healthcare Unit
+(9)
+(c) Details of CSR amount spent against other than ongoing projects for the financial year:
+Sun Pharmaceutical Industries Limited
+Amount
+transferred
+to Unspent
+CSR
+Account
+(11)
+Mode of
+Implementation -
+Mode of
+Implementa
+Through
+Implementing
+for the
+project as
+CARE
+tion -
+Direct
+(Yes/No).
+CSR
+per Section
+Name Registration
+number.
+135(6)
+Annual Report 2020-21
+55
+56
+Agency
+Statutory Reports
+Board's Report
+8.
+7.
+⚫ Rural Development Programme
+In FY21, the Company has spent 269.504 Million for the implementation of CSR projects.
+COMPOSITION OF CSR COMMITTEE:
+3.
+4.
+SI.
+Name of Director
+• Covid-19 Relief Work and
+No.
+Nature of Directorship
+Number of meetings of
+CSR Committee held
+during the year
+Number of meetings of
+CSR Committee attended
+during the year
+1.
+Mr. Dilip S. Shanghvi
+Chairman
+3
+Designation in the CSR
+Committee
+3
+• Drinking Water Project and
+• Education Programme
+Nil
+Place: Israel
+Date: May 27, 2021
+For and on behalf of the Board of Directors
+Israel Makov
+Chairman
+(DIN: 05299764)
+Annual Report 2020-21
+• Environment Conservation Programme
+53
+Annexure - D
+Annual Report on Corporate Social Responsibility (CSR)
+Activities for the FY21
+1.
+BRIEF OUTLINE ON CSR POLICY OF THE COMPANY:
+2.
+Sun Pharmaceutical Industries Limited ("Sun Pharma") has been implementing its CSR activities on different
+thematic areas as per needs identified in local communities. The Company has defined CSR policy for driving its CSR
+programme for mass benefits for people. These projects are focused towards downtrodden, unprivileged and lower
+strata of society. All activities are aligned with the item-areas mentioned in the Schedule VII to the Companies Act,
+2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. Sun Pharma's Corporate Social
+Responsibility initiatives focus on following thematic areas:
+• Healthcare Programme
+Sun Pharmaceutical Industries Limited
+CARE
+(a) Two percent of average net profit of the company as per section 135(5).
+2.
+Member
+Statutory Reports
+Board's Report
+5.
+DETAILS OF THE AMOUNT AVAILABLE FOR SET OFF IN PURSUANCE OF SUB-RULE (3) OF RULE 7 OF THE
+COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLICY) RULES, 2014 AND AMOUNT REQUIRED
+FOR SET OFF FOR THE FINANCIAL YEAR, IF ANY
+SI.
+Financial Year
+No.
+1
+54
+2017-18
+2018-19
+3 2019-20
+TOTAL
+Amount available for
+set-off from preceding
+financial years
+Amount required to be
+set off for the financial
+year, if any
+6. AVERAGE NET PROFIT OF THE COMPANY AS PER SECTION 135(5). - *6490.63 Million
+2
+Mr. Sudhir V. Valia
+Not Applicable for the projects undertaken during FY21
+https://sunpharma.com/policies/
+https://sunpharma.com/policies/
+3
+3
+3.
+Ms. Rekha Sethi
+Member
+3
+3
+DETAILS OF IMPACT ASSESSMENT OF CSR PROJECTS CARRIED OUT IN PURSUANCE OF SUB-RULE
+(3) OF RULE 8 OF THE COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLICY) RULES, 2014, IF
+APPLICABLE.
+Managing Director
+Non-executive Non-
+Independent Director
+Independent Director
+The details and the web-links, where such details can be accessed are given hereunder:
+Details
+Composition of CSR committee
+CSR Policy
+Web-Links
+https://sunpharma.com/committees-of-the-board/
+CSR projects
+WEB-LINK WHERE COMPOSITION OF CSR COMMITTEE, CSR POLICY AND CSR PROJECTS APPROVED BY
+THE BOARD ARE DISCLOSED ON THE WEBSITE OF THE COMPANY.
+Amount.
+Pradesh, Madhya
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Finance & Accounts
+• In the field of:
+more fields
+Expertise in one or
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Specialisation /
+KNOWLEDGE
+Sehgal
+Pawan
+Rama
+Goenka Bijapurkar
+Sethi
+Doshi
+Chaand
+Rekha
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Risk Management
+(Pharma Industry)
+Yes
+Yes
+Yes
+Yes
+Yes
+Industry Knowledge
+Yes
+Yes
+Gautam
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Governance
+Yes
+Yes
+Yes
+Yes
+Legal
+Yes
+Yes
+Sudhir
+Valia
+Subramanian
+Dilip Sailesh Kalyanasundaram
+Makov Shanghvi Desai
+Spencer's Retail Limited
+Sun Pharma Advanced Research Company Ltd
+Sun Pharma Advanced Research Company Ltd
+CESC Ltd
+Other Indian Listed entities in which they hold
+Directorship
+Mr. Vivek Chaand Sehgal
+Mr. Gautam Doshi
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Ms. Rekha Sethi
+Name of the Director
+Names of the Indian listed entities where the Directors of the Company hold Directorship and the category of
+directorship as on March 31, 2021:
+2 The Committee Memberships and Chairmanships in other Companies include Memberships and Chairmanships of Audit and Stakeholders'
+Relationship Committee only.
+1 The above number of other directorships does not include Directorships, Committee Memberships and Committee Chairmanships in
+Private Limited, Foreign and Section 8 Companies.
+Notes:
+1
+1
+1
+Motherson Sumi Systems Ltd
+63
+4
+4
+Mr. Gautam Doshi
+Yes
+4
+4
+Mr. Vivek Chaand Sehgal
+3
+5
+Yes
+4
+4
+Ms. Rekha Sethi
+Yes
+Yes
+Suzlon Energy Limited
+Chairman and Managing Director
+Israel
+Vivek
+Skill set / Area of
+Expertise
+Whether the skill is possessed by the Director of the Company
+The skills/expertise/competencies of the Directors are as given below:
+Interpersonal skills / communication
+Active Participation
+Decision Making Skills
+Leadership Skills
+Analytical Skills
+Genuine interest
+Problem Solving Skills
+Strategic Thinking/ Planning Skills
+Skills
+Behavioural Traits
+Integrity
+Category of Directorship
+General Management
+Industry Knowledge
+Governance
+Legal
+Finance & Accounts
+Specialisation / Expertise
+Knowledge
+In terms of requirement of Listing Regulations, the Board has identified the core skills/expertise/competencies of the
+Directors, as given below:
+Sun Pharmaceutical Industries Limited
+CARE
+65
+Annual Report 2020-21
+Non-Executive & Non-Independent Chairman
+Non-Executive and Independent
+Independent Director
+Non Executive & Non Independent Director
+Independent Director
+Risk Management
+Yes
+Yes
+Yes
+Mr. Sailesh T. Desai
+1,300,000
+Mr. Sudhir V. Valia
+Total
+Sitting Fees
+Perquisites/
+Benefits 2
+4,505,167
+6,924,612
+34,623,060
+Mr. Dilip S. Shanghvi
+Bonus
+Salary 1
+Directors
+(Amount in *)
+12,150,924
+For the year ended March 31, 2021
+The Non-Executive Directors of the Company are entitled to sitting fees of $100,000/- for attending each meeting of
+the Board and/or of Committee thereof except the Corporate Governance and Ethics Committee for which they are
+entitled to *50,000/- for each meeting of the Committee.
+The remuneration of the Managing Director and Whole-time Director(s) is approved by the Board, as per
+recommendation of the Nomination and Remuneration Committee within the overall limit fixed by the shareholders at
+their meetings.
+REMUNERATION OF DIRECTORS
+Mr. Gautam Doshi
+Mr. Israel Makov
+Ms. Rekha Sethi
+4
+4
+4
+4
+4
+4
+Number of Nomination and
+Remuneration Committee
+Meetings attended
+Number of Nomination and
+Remuneration Committee
+Meetings entitled to attend
+The details of Remuneration paid/payable to the Directors of the Company for the year ended March 31, 2021 are
+given below:-
+Name of the Director
+2,430,185
+Mr. Kalyanasundaram
+Mr. Kalyansundaram Subramanian, Whole-
+time Director, was for a period of 2 years with
+effect from February 14, 2019 to February 13,
+2021, including for payment of remuneration.
+The Nomination and Remuneration Committee
+and the Board of Directors have approved
+the re-appointment and remuneration of
+Mr. Kalyanasundaram Subramanian for a further
+period of 2 years with effect from February 14,
+2021 to February 13, 2023, subject to approval
+of members at the ensuing 29th Annual General
+Meeting. Either party to the agreement is entitled
+The agreement for appointment of
+is for a period of 5 years from April 1, 2019 to
+March 31, 2024 and remuneration for period of
+3 years from April 1, 2019 to March 31, 2022.
+Either party to the agreement is entitled to
+terminate the Agreement by giving to the other
+party 30 days' notice in writing.
+The Agreement with Mr. Sailesh T. Desai, Whole-
+time Director for his present term of appointment
+The Agreement with Mr. Dilip S. Shanghvi,
+Managing Director for his present term of
+appointment is for a period of 5 years from April
+1, 2018 to March 31, 2023 and remuneration for
+period of three years from April 1, 2018 to March
+31, 2021, and thereafter renewed for further
+period of two years from April 1, 2021 to March
+31, 2023. Either party to the agreement is entitled
+to terminate the Agreement by giving to the other
+party 30 days' notice in writing.
+68
+b)
+a)
+Notes:-
+Besides this, all the Whole-time Directors to whom
+remuneration is paid are also entitled to encashment of
+leave as per Company policy, and gratuity at the end of
+tenure, as per the rules of the Company.
+1 Salary includes Special Allowance. Salary of Mr. Kalyanasundaram Subramanian also includes variable pay of ₹7,637,106/-.
+Perquisites include House Rent Allowance, if any, Leave Travel Assistance, Medical Reimbursement, contribution to Provident Fund and
+such other perquisites, payable to Directors, as per Company Policy.
+2
+Note:
+2,239,213
+2,300,000
+600,000
+2,300,000
+Mr. Gautam Doshi
+Mr. Vivek Chaand Sehgal
+2,200,000
+800,000
+800,000
+2,200,000
+Ms. Rekha Sethi
+Mr. Israel Makov
+Subramanian 1
+46,052,839
+1,300,000
+16,820,322
+65,378,866
+2,609,499
+4,083,161
+58,686,206
+600,000
+Subramanian
+The attendance of each Member of the Committee is given below:
+Four meetings of Nomination and Remuneration Committee were held during the year ended March 31, 2021. The
+dates on which the meetings were held are as follows:
+The Committee has discussed with the Statutory
+Auditors and the head, Internal Audit about their
+audit methodology, audit planning and significant
+observations/suggestions made by them.
+Executives from the Finance Department,
+representatives of the Statutory Auditors and Internal
+Audit Department are also invited to attend the Audit
+Committee Meetings, whenever necessary.
+The terms of reference of the Audit Committee inter
+alia include: overseeing the Company's financial
+reporting process, reviewing with the management,
+the annual financial statements and auditor's report
+thereon before submission to the board for approval,
+recommendation for appointment, remuneration and
+terms of appointment of auditors of the company,
+reviewing the adequacy of internal audit function,
+discussion with internal auditors of any significant
+findings and follow up there on, evaluation of internal
+financial controls and risk management systems, review
+functioning of Whistle Blower/ Vigil Mechanism,
+approval of appointment of Chief Financial Officer,
+review and monitor the auditor's independence and
+performance, effectiveness of audit process, approval
+of transactions with related parties and reviewing the
+utilisation of loans and/ or advances from/ investment
+by the holding company in the subsidiary exceeding
+*100 Crore or 10% of the asset size of the subsidiary,
+whichever is lower including existing loans / advances
+/ investments etc.
+Statutory Reports
+Corporate Governance
+66
+The Audit Committee of the Company presently
+comprises of four Directors which include three
+Independent Non-executive Directors viz. Ms. Rekha
+Sethi, Mr. Gautam Doshi, Dr. Pawan Goenka and
+one Whole-time Director viz. Mr. Sailesh T. Desai.
+Mr. Gautam Doshi is the Chairman of the Audit
+Committee. Dr. Pawan Goenka has been appointed as
+the member of the Committee with effect from May
+27, 2021. The constitution of Audit Committee meets
+with the requirements as laid down under Section 177
+of the Companies Act, 2013 and also of Regulation
+18 of the Listing Regulations. Mr. Sunil R. Ajmera, the
+Company Secretary of the Company is the Secretary of
+the Audit Committee.
+AUDIT COMMITTEE
+a declaration to this effect signed by the Managing
+Director has been annexed as Annexure 'A' to the
+Corporate Governance Report. The Global Code of
+Conduct of the Company is available on the website
+of the Company at www.sunpharma.com. The Global
+Code of Conduct of the Company is applicable to all
+the employees of the Company including its subsidiary
+companies within and outside India, except any
+publicly held companies and its subsidiaries, and the
+employees are required to affirm compliance with the
+Code on an annual basis.
+4.
+All the Directors and senior management have affirmed
+compliance with the Global Code of Conduct as
+approved and adopted by the Board of Directors and
+The Board of Directors has laid down a Global Code
+of Conduct for all Board members, and all employees,
+including the senior management of the Company.
+This Code serves as a guide for our daily business
+interactions reflecting our standard for appropriate
+behavior and our corporate values, and is designed
+to prevent, detect, and address any allegation of
+misconduct and to provide guidance to Personnel in
+recognising and dealing with important ethical and
+legal issues and to foster a culture of honesty and
+accountability within the organisation.
+CODE OF CONDUCT
+3.
+In addition, the Committee has discharged such other
+role/functions as envisaged under Regulation 18 of
+the Listing Regulations, 2015 and the provisions of
+Section 177 of the Companies Act, 2013.
+The Independent directors fulfill the conditions
+specified in the Listing Regulations and are
+independent of the management.
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+General Management
+Yes
+Yes
+As far as Skills namely Strategic Thinking/ Planning
+Skills, Problem Solving Skills, Analytical Skills, Decision
+Making Skills and Leadership Skills; and Behavioural
+Traits namely Integrity, Genuine interest, Interpersonal
+skills/communication and Active Participation are
+concerned, all the Directors of the Company possess
+them.
+May 27, 2020; July 31, 2020; November 3, 2020 and January 27, 2021.
+Six Audit Committee Meetings were held during the
+year ended March 31, 2021. The dates on which the
+Meetings were held are as follows:
+The attendance of each Member of the Committee is
+given below:
+6.
+CARE
+Sun Pharmaceutical Industries Limited
+67
+The Nomination and Remuneration Committee has
+adopted the criteria as provided in the Guidance Note
+on Board Evaluation by Securities and Exchange Board
+of India vide its notification no. SEBI/HO/ CFD/CMD/
+CIR/P2017/004 dated January 5, 2017 for evaluation
+of the Individual Directors including Independent
+Directors. The said criteria provides certain parameters
+like knowledge, competency, fulfillment of functions,
+availability and attendance, initiative, integrity,
+contribution, independence and independent views
+and judgment.
+The terms of reference of the Nomination and
+Remuneration Committee inter alia include; to
+determine the Company's policy on specific
+remuneration packages for executive directors, to
+review, recommend and/ or approve remuneration
+to Whole-time Directors, to review and approve the
+Remuneration Policy of the Company, to formulate
+criteria for evaluation of Independent Directors and
+the Board, to devise a policy on Board Diversity, to
+identify persons who are qualified to become directors
+and who may be appointed in senior management in
+accordance with the criteria laid down and recommend
+to the Board the appointment or removal of such
+persons and carry out evaluation of every directors'
+performance, recommending to the board, all
+remuneration, in whatever form, payable to senior
+management etc.
+The Nomination and Remuneration Committee
+presently comprises of four Non-executive Directors
+viz. Ms. Rekha Sethi, Mr. Israel Makov, Mr. Gautam
+Doshi and Dr. Pawan Goenka. Ms. Rekha Sethi is the
+Chairperson of the Committee. Dr. Pawan Goenka
+has been appointed as the member of the Committee
+with effect from May 27, 2021 The constitution of the
+Nomination and Remuneration Committee meets with
+the requirements of Section 178 of the Companies Act,
+2013 as also the requirements laid down in Regulation
+19 of the Listing Regulations. Mr. Sunil R. Ajmera, the
+Company Secretary of the Company is the Secretary of
+the Committee.
+NOMINATION AND REMUNERATION
+COMMITTEE
+4 The Audit Committee meeting held on January 28, 2021 was
+adjourned for consideration of few agenda items and the
+adjourned meeting was held on January 29, 2021, and the
+adjourned meeting was attended by all members.
+3 The Audit Committee meeting held on November 2, 2020
+was adjourned for consideration of few agenda items and the
+adjourned meeting was held on November 3, 2020, and the
+adjourned meeting was attended by all members.
+2 The Audit Committee meeting held on July 30, 2020 was
+adjourned for consideration of few agenda items and the
+adjourned meeting was held on July 31, 2020, and the
+adjourned meeting was attended by all members.
+5.
+Annual Report 2020-21
+April 24, 2020, May 26, 2020¹; July 30, 20202; August
+31, 2020; November 2, 20203; and January 28, 20214.
+1 The Audit Committee meeting held on May 26, 2020 was
+adjourned for consideration of few agenda items and the
+adjourned meeting was held on May 27, 2020, and the
+adjourned meeting was attended by all members.
+6
+Mr. Sailesh T. Desai
+6
+6
+Ms. Rekha Sethi
+6
+6
+to attend
+Meetings attended
+Number of Audit
+Committee
+Number of Audit
+Committee
+Meetings entitled
+Mr. Gautam Doshi
+Name of the Director
+6
+2
+The Committee acts as a link between the
+management, external and internal auditors and the
+Board of Directors of the Company.
+4
+Steps taken or impact on Conservation of Energy
+1.
+A. CONSERVATION OF ENERGY
+Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and
+Outgo required under the Companies (Accounts) Rules, 2014
+Annexure - E
+Sun Pharmaceutical Industries Limited
+CARE
+52
+61
+Annual Report 2020-21
+The programme has benefitted diverse underprivileged
+communities, with the Company contributing *0.155
+Million during the financial year 2020-21.
+The programme aims to serve the underprivileged
+section of society by initiating measures for health
+promotion and during the course of a year various
+initiatives have been undertaken including financial
+support to blood banks, free medical benefits in
+rural focal point and organising various Specialised
+Medical Camps for Public benefits. It was organised at
+Panchmahal, Vadodara, Chengalpattu and Nawanshahr.
+19. HEALTHCARE PROGRAMME:
+The Company has contributed 0.207 Million in the
+project during the financial year 2020-21, benefitting
+school communities.
+2.
+Rainwater harvesting systems for schools is
+required for educating children about the benefits
+of conservation of our natural resources. They save
+money by water conservation and help to encourage
+an environmentally responsible attitude in the next
+generation. Working on the same motive, the project
+was undertaken to construct Roof-top Rain water
+Harvesting Structure in the Government School at
+Tarkhanda, Halol.
+The Company has contributed 0.211 Million in the
+project during the financial year 2020-21, with benefit
+being extended to communities.
+In order to upgrade the infrastructural facilities in the
+village, the project was undertaken and community
+centre has been renovated for public use in the
+Karkhadi village.
+17. RENOVATION OF COMMUNITY CENTRE:
+The Company has contributed 0.264 Million in the
+project during the financial year 2020-21, with benefit
+being extended to 42 Youths.
+It is important to engage the rural youth in a
+productive way in tandem with their aspirations by
+providing them credible opportunities for growth and
+well-being and working on the similar lines, the project
+has been undertaken to impart skill development
+training to rural youth in Malanpur area. Training
+was organised in the areas of Computer Literacy,
+Embroidery and Stitching.
+16. SKILL DEVELOPMENT TRAINING:
+The project has benefitted 470 Villagers, with the
+Company contributing 0.289 Million during the
+financial year 2020-21.
+The project envisions providing safe and potable
+drinking water supply by constructing and maintaining
+Tube well for water connectivity pipelines and water
+storage tanks at Toansa, Punjab.
+15. DRINKING WATER SUPPLY IN TOANSA:
+It's a public campaign, in which matching grant
+was provided by the Company. The Company
+has contributed 0.298 Million during the financial year
+2020-21. The benefit was extended to poor and
+deprived communities and it was implemented by
+Love Care Foundation.
+Donating food to the needy people helps counter
+poverty, hunger and at the same time, it boosts health,
+happiness, cooperation, goodwill, and foster strong
+communities. Working on the same cause, the project
+has undertaken to donate food plate to needy and
+underprivileged communities during the festive season
+in Ghaziabad and East Delhi Districts.
+14. DONATE A PLATE CAMPAIGN:
+Statutory Reports
+Board's Report
+18. RAIN WATER HARVESTING PROJECTS:
+60
+• New green fuel boiler installed instead of fossil fuel
+boiler.
+• Installed closed loop energy efficient pumping
+system instead of open loop hot well cold well
+system.
+383.8
+(in Million)
+Year ended
+March 31, 2020
+March 31, 2021
+Year ended
+-
+Expenditure on R&D
+(A) Research and Development
+TECHNOLOGY ABSORPTION
+Capital investment of *196.2 Million has been made on
+energy conservation equipments.
+Capital investment on energy conservation
+equipments
+B.
+3.
+energy
+• Electric heat pump is installed instead of steam
+based hot water generation.
+• In Dewas plant - Power is partly sourced from solar
+⚫ In Silvassa plant - Power is partly sourced from
+rooftop solar
+• In Gurgaon plant - Power is partly sourced from
+rooftop solar.
+• In MKM plant - Power is partly sourced from wind
+mills.
+• Conventional fuel like furnace oil/high speed
+diesel are replaced with biomass briquettes (carbon
+neutral) fuel for Steam generation at various
+locations.
+Steps taken by the Company for utilising alternate
+sources of energy
+• Improve steam to fuel ratio by condensate recovery,
+flash recovery & by replacing steam traps.
+• Old inefficient continuously operated motors are
+replaced with energy efficient IE3 motors.
+• Steam ejectors are replaced with dry vacuum pumps
+to reduce steam load and to reduce the impact on
+environmental load.
+• Hot water generation system for process is changed
+to plate heat exchangers from direct live steam
+heating.
+• Improve chiller system efficiency by installing
+automatic condenser cleaning system, side stream
+filtration systems.
+• Installed energy efficient pump in placed of
+inefficient pumps.
+• Replaced reciprocating air compressor by energy
+efficient screw compressor.
+• Installed energy efficient chillers instead of old
+inefficient chillers.
+• In Dadra plant - Power is partly sourced from
+rooftop solar
+305.4
+The project has benefitted 252 Households, with the
+Company's contribution of 0.311 Million during the
+financial year 2020-21.
+With an objective to maintain the ecological balance,
+attenuate the noise generated and improve the
+aesthetics, the Company has contributed 0.450
+Million in the project during the financial year 2020-21.
+13. CONSTRUCTION OF MINI WATER WORKS IN
+RURAL COMMUNITIES:
+The project has been undertaken to set-up laboratory
+at Scientific Research Institute for carrying-out
+scientific, dairy and agricultural research at Baramati,
+Maharashtra.
+INFRASTRUCTURAL DEVELOPMENT FOR
+PHARMA RESEARCH LABORATORY:
+The project has benefitted diverse communities across
+India with the total expenses of 104.296 Million
+during the FY21.
+3.
+The COVID-19 pandemic has led to a dramatic loss of
+human life worldwide and presented an unprecedented
+challenge to public health, food systems and the world
+of work. Countering the unprecedented challenges,
+the Company has wholeheartedly supported the fight
+against Covid-19 by providing comprehensive support
+to ongoing covid relief work. Providing free facemasks,
+sanitisers, medicines and food packets to the rural
+community has been at the core of Company's relief
+work.
+INITIATIVES ON PREVENTION OF COVID-19 IN
+COMMUNITIES:
+The company has contributed *100 Million during
+the financial year 2020-21 and the project has been
+implemented by Shantilal Shanghvi Foundation.
+SUPPORT TOWARDS SETTING-UP OF CANCER
+SANATORIUM INSTITUTE, WADALA, MUMBAI:
+The project aims to provide comprehensive cancer
+cure facility for delivering high-quality treatment
+and care for patients, embracing all socio-economic
+backgrounds by setting up a clean and aesthetically
+designed sanatorium for housing of cancer patients
+for chemotherapy and radiation treatment at Wadala,
+Mumbai.
+2.
+1.
+In FY21, the Company has spent 269.504 Million for the
+implementation of CSR projects.
+Rural Development Programme
+g)
+The Company has contributed 25 Million during
+the financial year 2020-21 and the project has been
+implemented by Agriculture Development Trust,
+Baramati.
+Covid-19 Relief Work and
+Drinking Water Project
+e)
+Environment Conservation Programme
+d)
+Sanitation Programme
+c)
+b) Education Programme
+Healthcare Programme
+a)
+Sun Pharmaceutical Industries Limited ("Sun Pharma")
+has been implementing its CSR activities on different
+thematic areas as per needs identified in local communities.
+The Company has defined CSR policy for driving its CSR
+programme for mass benefits for people. The CSR projects
+of the Company are focused towards downtrodden,
+unprivileged and lower strata of society. All activities are
+aligned with the item-areas mentioned in the Schedule
+VII to the Companies Act, 2013 read with the Companies
+(Corporate Social Responsibility Policy) Rules, 2014. Sun
+Pharma's Corporate Social Responsibility initiatives focus on
+following thematic areas:
+Statutory Reports
+Board's Report
+CSR Activities of the Company
+Yes
+f)
+The project aims to provide access to safe and
+equitable water connectivity in Abhetwa Village of
+Halol Taluka, fostering better health & time saved
+while fetching water, reduced incidence of diseases,
+increased productivity and greater time availability for
+income generating activities.
+4. MOBILE HEALTHCARE UNIT:
+Mobile Healthcare Unit aims to serve the
+The project aims to provide impetus on fostering
+environment conservation and increase greenery in
+roadside areas of Ahmednagar, Panoli, Toansa and
+Vadodara.
+12. ROADSIDE PLANTATION INITIATIVES:
+The Company has contributed 0.488 Million in the
+project during the financial year 2020-21, with benefit
+being extended to communities.
+Rural Infrastructure plays a very important role in
+supporting nation's economic growth, it is crucial for
+agriculture, agro-industries and poverty alleviation in
+the rural areas and has the potential to provide basic
+amenities to people that can improve their quality of
+life, working on the same motive, the project aims to
+uplift rural communities by upgrading much needed
+rural infrastructure facilities at Ahmednagar, Halol and
+Panoli.
+11. RURAL INFRASTRUCTURE DEVELOPMENT
+PROJECTS:
+The Company has contributed 0.617 Million in the
+project during the financial year 2020-21, with benefit
+being extended to 20 patients suffering from Covid-19.
+In continuation of commitment to counter the
+unprecedented challenges during Covid-19, the
+Company furthered its spirited efforts by providing
+free Tocilizumab Injection for seriously ill patients
+addressing public health emergency at Silvassa.
+10. PROVISION OF MEDICINES TO COMBAT
+COVID-19 INFECTION:
+PROMOTION OF QUALITY OF EDUCATION:
+Promotion of quality of education envisions enhancing
+the quality of education in educational institutions and
+addressing the unmet needs for them to empower the
+students. It focuses on providing remedial education
+for the students, laboratory set-up with the ultimate
+objective to enhance the quality of education in
+educational institutions located at Chennai and
+Vadodara. The Company has contributed *1.050
+Million during the financial year 2020-21. With benefit
+being extended to 525 students, the project has been
+implemented by CSR Department of the Company.
+The Company has contributed 1.167 Million during
+the financial year 2020-21, with benefit being
+extended to 1501 Students.
+The Company has contributed *1.241 Million during
+the financial year 2020-21, with benefit being
+extended to 325 toddlers.
+The project envisions to provide a caring environment
+that addresses the educative, health and nutritive
+requirements of rural children by refurbishing of
+existing centres in child friendly environment including
+learning environment through provision of good
+infrastructure and learning materials in Anganbari
+Centres located at Maduranthakam and Vadodara.
+ANGANBARI DEVELOPMENT PROJECT:
+5.
+The Company has contributed *1.999 Million during
+the financial year 2020-21, with benefit being
+extended to 1421 Students.
+SCHOOL TOILET CONSTRUCTION PROJECT:
+Lack of access to proper sanitation facilities poses
+a huge barrier to education as children frequently
+miss school due to hygiene-related diseases. Proper
+sanitation facilities play a key role in creating safe
+and healthy school environments where children can
+focus on learning. Working on the same agenda, this
+project aims to provide safe sanitation facilities in
+Government Schools located at Dadra, Halol, Panoli
+9.
+8.
+7.
+6.
+Sun Pharmaceutical Industries Limited
+CARE
+59
+Annual Report 2020-21
+With an objective to upgrade the infrastructure
+facilities in schools, Company has contributed *2.213
+Million during financial year 2020-21. The programme
+has been implemented by CSR department and it has
+benefitted 2934 Students.
+The Programme envisions comprehensive
+improvement of school education while transforming
+the lives of the community by creating a lot of
+educated, self-reliant and confident students. It aims
+to develop quality infrastructure such as classrooms,
+water and sanitation facilities, sports equipment
+facilities and availability of chairs and benches in Halol,
+Panoli, Maduranthakam, Paonta, Silvassa, Baddi and
+Toansa.
+SCHOOL INFRASTRUCTURE DEVELOPMENT
+PROJECT:
+The Project has provided Curative Treatment to
+1,26,234 patients and Preventive & Promotive
+Healthcare to 29,449 people during the course of a
+year. The Company has contributed *22.708 Million
+during the financial year 2020-21 and project was
+implemented by Sun Pharma Community Healthcare
+Society.
+underprivileged section of the society by initiating
+measures for Health Promotion, Preventive Healthcare
+Education and providing treatment. It operates in the
+rural areas of Ahmednagar, Halol, Mohali, Toansa,
+Paonta Sahib, Dewas, Panoli, Ankleshwar, Karkhadi,
+Malanpur, and Maduranthakam.
+and Maduranthakam.
+9,990.3
+SETTING-UP OF DIGITAL CLASSROOM PROJECT:
+The project caters to the increasing need of integrating
+ICT in current education system. It aims to enhance
+the quality of education in schools through digital
+mode of education in Government schools of Halol and
+Karkhadi in Gujarat. This has also helped in augmenting
+the interest of students in studies leading to increase
+in school attendance and better performances.
+10,374.1
+Number of
+Board Meetings
+Entitled to
+Board Meetings
+for the year ended March 31, 2021
+Number of
+Attendance particulars
+Name of the Director
+Number of Board meetings the Directors were entitled to attend, attendance of each Director at the Board meetings
+and at the last Annual General Meeting (AGM) held by audio-visual means, and number of other Directorships and
+Chairmanships/Memberships of Committee of each Director for the year under review, is given below:
+May 27, 2020; July 31, 2020; November 3, 2020; and January 29, 2021.
+Four Board meetings were held during the year. The dates on which the meetings were held during the year ended
+March 31, 2021 are as follows:
+Number of Board meetings held during the year ended March 31, 2021 and the dates on which held:
+Inter-se Relationship between Directors
+Ms. Rama Bijapurkar (Appointed with effect
+from May 21, 2021)
+Dr. Pawan Goenka (Appointed with effect
+from May 21, 2021)
+No. of other Directorships and Committee
+Memberships / Chairmanships as of March 31, 20211
+Mr. Gautam Doshi
+Ms. Rekha Sethi
+Name of the Directors
+Non-Executive Independent Directors
+Category of Directors
+Statutory Reports
+Corporate Governance
+ŵ
+64
+Mr. Sailesh T. Desai (Whole-time Director)
+Mr. Kalyanasundaram Subramanian
+(Whole-time Director)
+Brother-in-law of Mr. Sudhir V. Valia
+Brother-in-law of Mr. Dilip S. Shanghvi
+Mr. Dilip S. Shanghvi (Managing Director)
+Mr. Sudhir V. Valia
+Inter-se Relationship between Directors
+Non-Promoter (however part of
+Promoter Group) Non-Executive and
+Non Independent Directors
+Non-Promoter Executive Directors
+Promoter Executive Director
+Mr. Vivek Chaand Sehgal
+Non-Promoter Non-Executive and Non Mr. Israel Makov (Chairman)
+Independent Directors
+Committee
+Chairmanships²
+on August 27,
+4
+9,897.5
+Mr. Kalyanasundaram
+3
+Yes
+4
+4
+Mr. Sailesh T. Desai
+1
+3
+4
+Yes
+4
+Last AGM held
+4
+1
+Yes
+4
+4
+Mr. Dilip S. Shanghvi
+Yes
+4
+4
+Mr. Israel Makov
+attend
+2020
+attended
+Other
+Directorships
+Mr. Sudhir V. Valia
+Name of the Directors
+Committee
+Memberships²
+The present strength of the Board of Directors of your Company is ten Directors.
+Composition and category of Directors is as follows:
+C) Foreign Exchange Earnings and Outgo –
+Your company has not imported technology during
+the last 5 years reckoned from the beginning of the
+financial year.
+(g) Clinical studies of some products (complex and
+difficult to formulate) have been carried out at
+our in-house clinical pharmacology units. This has
+helped to maintain R&D quality and regulatory
+compliance with significantly reduced cost.
+(f) The Company has benefited from reduction in
+cost due to import substitution and increased
+revenue through higher exports.
+(e) We are among the few selected companies that
+have set up completely integrated manufacturing
+capability for the production of anticancer,
+hormones, peptide, immunosuppressant and
+steroidal drugs.
+3.
+(d) Offers technologically advanced differentiated
+products which are convenient and safe for
+administration to patients.
+Not dependent on imported technology, can make
+high-end products available at competitive prices
+by using indigenously developed manufacturing
+processes and formulation technologies.
+and filed from our R&D locations for the Indian
+and regulated markets and 177 dossiers were
+submitted for filing in various emerging markets.
+The Company has also filed 100+ drug master
+files across various markets during the year.
+(c)
+(b) For FY21, 75 formulations were developed
+(a) Offers complete basket of products under chronic
+therapeutic classes. Many products are in the
+pipeline for future introduction in India, emerging
+markets, as well as US and European generic
+market. The Company has developed an ability
+to challenge patents in the US market, and earn
+exclusivity.
+Benefits derived as a result of the above efforts
+e.g. product improvement, cost reduction, product
+development, import substitution
+Earnings
+Outgo
+Process optimisation based on Quality by Design
+(QbD) concept and robustness by six sigma calculation
+have been implemented for wide range of products
+with the objective to reduce cost and increase in-
+process capability.
+2.
+62
+62
+There has been thrust on the development of novel
+technologies like use of green reagents for chemical
+transformations in API synthesis, use of PAT tools in
+process development, and advanced crystallisation
+and powder processing techniques like ultrasonic
+crystallisation for achieving required particle size
+and physical characteristics for formulation, plug
+flow reactors, advanced flow reactors for continuous
+process and safety related studies using reaction
+calorimetry and other advanced process engineering
+tools. Product Life Cycle management has been
+undertaken for key products. Backward integration is a
+key strategic objective and many of our products enjoy
+the benefit of this backward integration.
+The Company continues to invest on R&D, both as
+revenue expenses as well as capital investments.
+This spending is directed at developing complex
+products, specialty products, generic products,
+and API technologies. Some of these products may
+require dedicated manufacturing blocks. Investments
+have been made in employing scientifically skilled
+and experienced manpower, adding technologically
+advanced and latest equipment, sponsored
+research and in accessing world class consultants to
+continuously upgrade the research understanding of
+the scientific team in the technologies and therapy
+areas of our interest.
+1.
+(B) Technology Absorption, Adaptation and Innovation
+Efforts in brief, made towards technology absorption,
+adaptation and innovation
+Capital
+Revenue
+Total
+as % of Total Turnover
+10,202.9
+8.6%
+Category of Directors
+8.3%
+Total R&D expenditure
+Statutory Reports
+Board's Report
+(in Million)
+Novel compact dosage forms having differentiation
+with regards to improved stability and/or reduced
+pharmacokinetic variability have been developed for
+the Indian market. Stable liquid oral formulations of
+labile products are also being developed.
+Year ended
+March 31, 2020
+2.
+Sun Pharmaceutical Industries Limited is committed
+to learn and adopt the best practices of Corporate
+Governance.
+Year ended
+March 31, 2021
+BOARD OF DIRECTORS
+Sun Pharmaceutical Industries Limited's philosophy
+envisages reaching people touching lives globally by
+following the core values of the Company viz Quality,
+Reliability, Consistency, Trust, Humility, Integrity,
+Passion and Innovation which are also a way of life
+at the Company. These values form a base of the
+Corporate Governance practices of the Company. The
+Company ensures to work by these principles in all its
+interactions with stakeholders, including shareholders,
+employees, customers, consumers, suppliers and
+statutory authorities.
+In compliance with Regulation 34(3) read with
+Schedule V of the Securities and Exchange Board of
+India (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 ("Listing Regulations"), as amended
+from time to time the Company submits the Corporate
+Governance Report for the year ended March 31,
+2021.
+1. COMPANY'S PHILOSOPHY ON CODE OF
+CORPORATE GOVERNANCE
+• The Company has been spending on CSR activities in
+some of the previous years on voluntary basis even when
+the average net profits of the Company were negative,
+and requirement for mandatory spend by the Company
+was not applicable to the Company for those years, as
+per the Companies Act, 2013.
+• The Company sends on quarterly basis, the quarterly
+results along with summary of significant events to the
+shareholders whose e-mail IDs are available with the
+Company/Registrar.
+• The Company has separate positions of Chairman and of
+Managing Director since 2012.
+• Our Global Code of Conduct policy which sets forth
+legal and ethical standards of conduct for us, to ensure
+compliance with legal requirements and serves as a
+guide for our daily business interactions, reflecting our
+standard for appropriate behavior and our corporate
+values, is made applicable to all the employees (whether
+permanent or temporary) as well as employees of our
+subsidiaries, affiliates and business units within and
+outside India (except any publicly held companies and its
+subsidiaries).
+• Extended the Whistle Blower mechanism to external
+stakeholders which enables anonymous complaints.
+• The Company constituted a Corporate Governance
+and Ethics Committee, with the objective to monitor
+Company's compliance with the Corporate Governance
+guidelines and applicable laws and regulations, make
+recommendations to the Audit Committee and thereby
+to the Board on all such matters and on corrective
+actions, if any, to be undertaken, review and ensure
+implementation of ethical standards and practices in
+respect of Corporate Governance by the Company in
+spirit, substance and intent perspective.
+Highlights of the Corporate Governance Initiatives at Sun
+Pharma:
+Sun Pharma ensures adherence to regulatory requirements
+at all times and is committed to implement the highest
+standards of Corporate Governance and ethical practices.
+In the last few years, the Company has taken various
+initiatives to implement the best practices with a focus on
+further enhancing the Corporate Governance standards.
+• Sharing of general guide for investors - FAQs and Guide
+book is made available on the website of the Company at
+the link https://sunpharma.com/investors-faqs/ for the
+convenience of shareholders.
+Israel Makov
+For and on behalf of the Board of Directors
+CORPORATE GOVERNANCE INITIATIVES AT SUN
+PHARMA
+Place: Israel
+Date: May 27, 2021
+Chairman
+(DIN: 05299764)
+74,218.7
+27,963.9
+Annual Report 2020-21
+84,492.8
+30,333.7
+63
+Sun Pharmaceutical Industries Limited
+CARE
+Corporate Governance
+Day, Date and Time
+Through Video Conferencing/Other
+Audio Visual means
+p.m
+Tuesday, August 31, 2021 at 3:00
+Venue
+74
+26, 2020 and vide subsequent circular no. SEBI/
+HO/CFD/CMD1/CIR/P/2020/79 dated May 12,
+2020, following were permitted not to be published
+in the newspapers: a) Notice for intimation of
+Board Meeting held on May 27, 2020. b) Extract
+of Financial Results for the quarter and year ended
+March 31, 2020. Therefore, the same were not
+published.
+• Reminder to Investors: Reminders for unpaid
+dividend are sent to shareholders, regularly every
+year.
+com.
+• Corporate Filing: Announcements, Quarterly
+Results, Shareholding Pattern etc. of the Company
+are regularly filed by the Company with the Stock
+Exchanges and are available on the website of
+BSE Ltd. - www.bseindia.com and National Stock
+Exchange of India Ltd. - www.nseindia.com and also
+on the website of the Company - www.sunpharma.
+• Financial Results: The annual, half-yearly and
+quarterly results are regularly posted by the
+Company on its website www.sunpharma.com and
+are also sent to the shareholders whose e-mail IDs
+are registered with the Company. These are also
+submitted to the Stock Exchanges on which the
+securities of the Company are listed in accordance
+with the requirements of the Listing Regulations
+and published in all English Editions of "Financial
+Express' and Gujarati Edition of 'Financial Express'
+which is published in Ahmedabad. However,
+pursuant to exemption granted by Securities and
+Exchange Board of India (SEBI) vide its circular no.
+• Chairman's Communique: The Chairman's Speech
+is sent to the stock exchanges and placed on the
+website of the Company.
+SEBI/HO/CFD/CMD1/CIR/P/2020/48 dated March
+Statutory Reports
+Corporate Governance
+• Annual Report: Annual Report containing inter alia
+Audited Annual Accounts, Consolidated Financial
+Statements, Board's Report, the Management
+Discussion and Analysis Report, Auditor's Report,
+and other important information is sent to the
+shareholders whose e-mail IDs are registered.
+However pursuant to SEBI Circular No. SEBI/HO/
+CFD/CMD1/CIR/P/2020/79 dated May 12, 2020
+and MCA General Circular No. 20/2020 dated May
+5, 2020 of Ministry of Corporate Affairs, due to
+COVID, no physical copies of the Annual Report for
+FY 2019-20 were sent. Pursuant to SEBI Circular
+No. SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated
+January 15, 2021 and MCA General Circular 2/2021
+dated January 13, 2021 in continuation of MCA
+General Circular No. 20/2020 dated May 5, 2020 no
+physical copies of the Annual Report for FY 2020-
+21 will be sent.
+15. GENERAL SHAREHOLDER INFORMATION
+15.1 Annual General Meeting:
+15.2 Financial Calendar (tentative):
+15.5 Listing Details
+Results for quarter
+ending December
+31, 2021
+(c) Demat ISIN Numbers in
+NSDL and CDSL for Equity
+Shares of *1/- each
+(b) Trading Symbol at National SUNPHARMA
+Stock Exchange of India
+Limited, Exchange Plaza, 5th
+Floor, Plot No. C/1, G Block,
+Bandra Kurla Complex,
+Bandra (East), Mumbai -
+400 051
+dedicated section 'INVESTORS' where shareholders'
+information is available. The Annual Report for
+2020-21 and Annual Report/ Abridged Annual
+Report for the past years are also available on the
+website in a user friendly and downloadable form.
+Apart from this, official news releases, detailed
+presentations made to media, analysts etc., and the
+transcript of the conference calls are also displayed
+on the Company's website.
+ISIN No.INE044A01036
+Mumbai - 400 001
+P. J. Towers, Dalal Street,
+(a) Trading Symbol at BSE Ltd., 524715
+Market Operations Dept.,
+Results for quarter
+ending June 30, 2021
+Results for quarter
+ending September
+30, 2021
+15.6 Stock Market Data - Equity Shares of 1/- paid-up value:
+15.4 Dividend Payment Date:
+15.3 Details of Book-closure for Equity Shareholders:
+From Wednesday, August 25, 2021 to Tuesday, August
+31, 2021 (both days inclusive)
+Third or Fourth week of May
+2022.
+Last week of January 2022/
+First week of February 2022.
+Last week of October 2021/
+First week of November 2021.
+Last week of July 2021/First
+week of August 2021.
+Audited Results for year
+ended March 31, 2022
+On or before, Thursday, September 17, 2021
+• Website: The Company's website
+www.sunpharma.com contains a separate
+• The Board of Directors of the Company has
+approved a Whistle Blower Policy/Vigil Mechanism
+to monitor the actions taken on complaints received
+under the said policy. This policy also outlines the
+reporting procedure and investigation mechanism to
+D. The Head, Global Internal Audit Department of
+the Company reports to the Audit Committee
+on all the key matters including its findings.
+• During the year, two separate meetings of the
+independent directors were held on October
+• Details of the familiarisation programme
+of the independent directors are available
+on the website of the Company at:
+https://www.sunpharma.com/policies
+be followed in case an employee blows the whistle
+for any wrong-doing in the Company. Employees
+are given protection in two important areas -
+confidentiality and against retaliation. It is ensured
+that employees can raise concerns regarding any
+violation or potential violation easily and free of
+fear of retaliation, provided they have raised
+the concern in good faith. An Ombudsperson/s has
+been appointed to receive the complaints through
+a portal or email or letters who would investigate
+the complaints with an investigating committee. The
+Policy is expected to help to draw the Company's
+attention to unethical, inappropriate or incompetent
+conduct which has or may have detrimental effects
+either for the organisation or for those affected
+by its functions. The details of establishment of
+vigil mechanism are available on the website of the
+Company. No personnel have been denied access to
+the Audit Committee. The Whistle Blower Policy of
+the Company also enables external parties to report
+any matter.
+any
+Statutory Reports
+Corporate Governance
+72
+• The Company has laid down procedures to inform
+Board members about the risk assessment and
+its minimisation, which is periodically reviewed
+to ensure that risk control is exercised by the
+management effectively.
+• There were no instances of non-compliance by
+the Company on any matters related to the capital
+markets or penalties, strictures imposed on the
+Company by the Stock Exchange or SEBI or any
+statutory authority on any matter related to capital
+markets, during the last three years. However,
+during the period under review, the Company and
+the then KMPs and an officer had filed settlement
+applications under SEBI (Settlement Proceedings)
+Regulations, 2018 on July 18, 2020 to expeditiously
+close the matter pertaining to adjudication
+proceedings initiated vide show-cause notices
+dated May 19, 2020, without admitting or denying
+the finding of fact and conclusion of law in respect
+of alleged violations of certain provisions of SEBI
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015, relevant for timely compliances
+of disclosures and approvals pertaining to related
+parties and have paid the settlement charges
+recommended by SEBI. Subsequently, the
+adjudication proceedings initiated vide show-cause
+notices dated May 19, 2020 were disposed of in
+terms of section 15JB of the SEBI Act, 1992 and
+Section 23JA of the SCRA read with regulation
+23(1) of SEBI (Settlement Proceedings) Regulations,
+2018. The aggregate settlement charges were
+*2,92,10,250/- (Two crores, ninety two lakhs, ten
+thousand, two hundred and fifty). The settlement
+amounts for individuals, have subsequently been
+received by the Company.
+• No transaction of a material nature has been
+entered into by the Company with its related parties
+that may have a potential conflict with the interests
+of the Company. Register of contracts containing
+transactions, in which directors are interested, is
+placed before the Board of Directors regularly.
+The transactions with the related parties as per
+Ind AS-24, are disclosed in Note 50 of the Notes
+forming part of the Standalone Financial Statements
+for the year ended March 31, 2021.
+13. DISCLOSURES
+Conferencing on Tuesday, March 16, 2021 wherein
+resolution for approving the Scheme of Amalgamation
+and Merger of Sun Pharma Global FZE ('Transferor
+Company") with Sun Pharmaceutical Industries Limited
+("Transferee Company"), and their respective members
+and creditors was passed with requisite majority.
+Pursuant to the order dated January 07, 2021,
+passed by the Hon'ble NCLT, Ahmedabad Bench,
+separate meetings of unsecured creditors and equity
+shareholders of the Company were held through Video
+No resolution was passed through postal ballot during
+the year under review.
+The Company has paid the Listing fees for the Financial
+Year 2020-21, to BSE Ltd National Stock Exchange of
+India Ltd.
+Resolution passed at Tribunal Convened Meetings:
+1, 2020 and January 29, 2021. At a meeting of
+independent directors the performance of non-
+independent directors and the board as a whole was
+evaluated.
+• The policy on dealing with the related party
+transactions is available on the website of
+the Company and can be accessed at:
+https://www.sunpharma.com/policies.
+• During the year, there were pecuniary
+transactions with the Companies in which
+Non-Executive Directors are interested as
+follows: a) Transactions of receiving of services
+from Makov Associates Limited of *187,243,223/-
+(Previous Year (PY): 143,930,686/-) in
+which Mr. Israel Makov, Non-Executive and
+Non-Independent Chairman is interested; b)
+Transactions with MothersonSumi INfotech
+& Designs Limited for receiving of services:
+*76,841,912/- (PY: ₹4,773,342/-)
+for purchase of property, plant and equipment:
+*3,497,717/- (PY: Nil) and with Anest Iwata
+Motherson Private Limited for receiving of
+services: 197,189/- (PY: ₹8,204/-) in which
+entities Mr. Vivek Chaand Sehgal, Non-Executive
+and Independent Director is interested;
+c) Transactions with Fortune Integrated Assets
+Finance Limited for revenue from contract with
+customers: 59,748/- (PY: Purchase of Goods:
+*34,740/-), with Sun Petrochemicals Private
+Limited for lease rent received: 2,400,000/-
+(PY: 2,400,000/-), with Kism Textiles Private
+C. The auditors have issued an unmodified opinion
+to the financial statements of the Company.
+B. The Company sends quarterly results
+alongwith summary of significant events to the
+shareholders whose e-mail IDs are available
+with the Company/Registrar.
+A. The Company complies with all the mandatory
+requirements specified under Listing
+Regulations.
+• Details of compliance and Adoption/Non Adoption
+of the non-mandatory requirements for the year
+ended March 31, 2021:
+c. number of complaints pending as on end of the
+financial year: 0
+b. number of complaints disposed of during the
+financial year: 0
+Sun Pharmaceutical Industries Limited
+CARE
+14. MEANS OF COMMUNICATION
+73
+a. number of complaints filed during the financial
+year: 0
+• Disclosures in relation to the Sexual Harassment of
+Women at Workplace (Prevention, Prohibition and
+Redressal) Act, 2013:
+• Total fees for all services paid by the listed entity
+and its subsidiaries, on a consolidated basis, to the
+statutory auditor and all entities in the network
+firm/network entity of which the statutory auditor
+is a part was 15,72,78,613/- (Rupees Fifteen Crore
+Seventy Two Lakhs Seventy Eight Thousand Six
+Hundred and Thirteen only), for the year under
+review
+• Certificate from a company secretary in practice
+that none of the directors on the board of the
+Company have been debarred or disqualified from
+being appointed or continuing as directors of the
+Company by the Board/Ministry of Corporate
+Affairs or any such statutory authority has
+been annexed as Annexure 'B' to the Corporate
+Governance Report.
+• Apart from the above and sitting fees paid to
+Non-Executive Directors, there are no pecuniary
+transactions with Non Executive directors of the
+Company or the companies in which they are
+interested which had potential conflict of interest
+with the Company.
+• All the transactions with entities in which the
+Independent Directors are/were interested
+constitute negligible percent of the revenue of the
+Company.
+Limited for purchase of goods/services:
+*206,700/-(PY: Nil), transactions with Sun
+Pharma Advanced Research Company Limited
+for Revenue from contracts with customers, net
+of returns, purchase and sale of property, plant
+and equipment, royalty expenses, receiving of
+service expenses, reimbursement of expenses
+paid, rendering of service income, reimbursement
+of expenses received and lease rent received:
+₹2,166,860,424/-(PY: ₹507,603,286/-), transaction
+with Alfa Infraprop Private Limited for Other
+operative income/ other income: 22,693,009
+(PY: Nil) and reimbursement of expenses paid:
+*31,917,752/-(PY: Nil), Donation to Shantilal
+Shanghvi Foundation: *100,000,000/- (PY: Nil)
+in which entities Mr. Sudhir Valia, Non-Executive
+and Non-Independent Director is interested
+except for the subsidiaries of the Company
+wherein it is deemed that he does not have any
+personal pecuniary interest; d) Transactions with
+Anshul Speciality Molecules Private Limited for
+Purchase of Goods/services: 55,253,539/-
+(PY: 17,580,630/-) in which Mr. Gautam Doshi,
+Non-Executive and Independent Director is
+interested.
+Annual Report 2020-21
+BSE Ltd. (BSE) (in)
+636.75
+Month's High Price Month's Low Price
+654.40
+561.65
+653.70
+February, 2021
+550.40
+628.00
+550.70
+627.95
+512.65
+599.45
+514.75
+599.50
+459.05
+526.00
+459.30
+579.60
+March, 2021
+636.45
+562.40
+600
+Resolution Passed Through Postal Ballot:
+586
+O
+O
+598
+595
+592
+526.00
+650
+15.7 Share Price performance in comparison to broad-based indices - BSE Sensex and NSE Nifty
+Sun Pharmaceutical Industries Limited & BSE Sensex closing price:
+CARE
+Sun Pharmaceutical Industries Limited
+75
+Annual Report 2020-21
+(Source: BSE and NSE website)
+562.10
+55000
+452.25
+529.30
+452.60
+512.70
+457.00
+512.55
+434.25
+481.60
+434.25
+481.45
+455.00
+338.40
+338.60
+504.85
+July, 2020
+June, 2020
+May, 2020
+April, 2020
+Month's High Price Month's Low Price
+504.80
+National Stock Exchange of India Ltd.
+(NSE) (in )
+540.75
+541.00
+529.40
+483.00
+535.00
+483.00
+535.00
+514.05
+564.75
+466.15
+514.50
+January, 2021
+December, 2020
+November, 2020
+October, 2020
+September, 2020
+August, 2020
+466.15
+564.90
+Mr. Dilip Shanghvi, Managing Director, for further
+period of two years i.e. from April 01, 2021 to
+March 31, 2023.
+8.
+Mr. Kalyanasundaram Subramanian, Whole-
+time Director, with effect from July 04, 2019 till
+remaining term of his appointment upto February
+13, 2021.
+Name of the Director
+During the year ended March 31, 2021, three meetings
+of Corporate Social Responsibility Committee were
+held on May 26, 2020 and November 2, 2020 and
+January 28, 2021. The attendance of each member of
+Committee is as follows:
+activities/projects; to formulate and recommend to
+the Board, an Annual Action Plan in pursuance of the
+Corporate Social Responsibility Policy of the Company
+and the provisions of the Companies Act, 2013, which
+shall include the list of CSR projects or programs, the
+manner of execution of such projects or programs, the
+modalities of utilisation of funds and implementation
+schedules for the projects or programs; to monitor
+and review the utilisation of the funds on the CSR
+activities/projects, as approved by the Board; to advise
+board on surplus funds generated out of CSR projects
+undertaken, and recommend their utilisation on the
+CSR activities/projects of the Company; to monitor/
+review the amount incurred towards administrative
+overheads and to recommend the Board its treatment,
+to review and monitor the applicability of the Impact
+Assessment of the CSR Projects undertaken by
+the Company and if applicable; to review unspent
+amounts, if any, and recommend to Board, the transfer
+of such amounts in accordance with provisions of
+the Companies Act, 2013 etc. The CSR Policy of the
+Company can be accessed through the web link:
+https://www.sunpharma.com/policies.
+Sun Pharmaceutical Industries Limited
+CARE
+69
+Annual Report 2020-21
+The Corporate Social Responsibility Committee
+presently comprises of four Directors viz. Mr. Sudhir
+V. Valia, Ms. Rekha Sethi, Ms. Rama Bijapurkar and
+Mr. Dilip S. Shanghvi. The Chairman of the Committee
+is Mr. Dilip S. Shanghvi. The constitution of the
+Corporate Social Responsibility Committee meets the
+requirements of section 135 of the Companies Act,
+2013. Mr. Sunil R. Ajmera, the Company Secretary
+of the Company is the Secretary of the Committee.
+Ms. Rama Bijapurkar has been appointed as the
+member of the Committee with effect from May 27,
+2021. Pursuant to the amendments to the Listing
+Regulations on May 5, 2021, the terms of reference
+of the CSR Committee were revised with effect
+from May 27, 2021. The revised terms of reference
+are: To formulate and recommend to the Board, a
+Corporate Social Responsibility Policy, which shall
+indicate the activities/ projects to be undertaken
+by the Company as specified in Schedule VII of the
+Companies Act 2013; to monitor the Corporate Social
+Responsibility Policy of the company from time to
+time and recommend revision / amendments thereof,
+wherever required; to recommend the amount of
+expenditure to be incurred in the above referred
+CORPORATE SOCIAL RESPONSIBILITY
+COMMITTEE
+The total numbers of complaints received and resolved
+to the satisfaction of shareholders, during the year
+under review were 2. There were no complaints
+pending at the beginning or at the end of the year.
+4
+4
+3
+4
+4
+4
+Mr. Dilip S. Shanghvi
+Number of
+Corporate Social
+Responsibility
+Committee
+meetings entitled
+to attend
+to attend
+3
+3
+meetings attended
+Number of Risk
+Management
+Committee
+Number of Risk
+Management
+Committee
+meetings entitled
+3
+to attend
+3
+3
+3
+The attendance of each member of committee is as
+follows:
+During the year ended March 31, 2021, two meetings
+of Risk Management Committee were held on May 26,
+2020 and October 30, 2020.
+terms of reference are: To formulate a detailed risk
+management policy which shall include a framework
+for identification of internal and external risks
+specifically faced by the listed entity, in particular
+including financial, operational, sectoral, sustainability
+(particularly, ESG related risks), information, cyber
+security risks or any other risk as may be determined
+by the Committee, Measures for risk mitigation
+including systems and processes for internal control
+of identified risks, Business continuity plan; to ensure
+that appropriate methodology, processes and systems
+are in place to monitor and evaluate risks associated
+with the business of the Company; to monitor and
+oversee implementation of the risk management
+policy, including evaluating the adequacy of risk
+management systems; to periodically review the
+risk management policy, at least once in two years,
+including by considering the changing industry
+dynamics and evolving complexity; to keep the board
+of directors informed about the nature and content
+of its discussions, recommendations and actions to be
+taken; to review the appointment, removal and terms
+of remuneration of the Chief Risk Officer (if any), to
+coordinate its activities with other committees, in
+instances where there is any overlap with activities of
+such committees etc.
+meetings attended
+Number of
+Corporate Social
+Responsibility
+Committee
+Name of the member
+Mr. Dilip S. Shanghvi
+Meetings attended
+Number of
+Stakeholders'
+Relationship
+Four meetings of the Stakeholders' Relationship
+Committee were held during the year ended March 31,
+2021. The dates on which Meetings were held are as
+follows:
+The Board has designated severally, Mr. Sunil R.
+Ajmera, Company Secretary and Mr. Ashok I. Bhuta,
+Sr. G.M - Secretarial as Compliance Officers for the
+purposes of/under rules, regulations etc. issued by the
+Securities Exchange Board of India, Stock Exchanges,
+and Companies Act, 2013.
+No. of Equity Shares held (held
+singly or jointly as first holder)
+Mr. Gautam Doshi
+Mr. Vivek Chaand Sehgal
+Ms. Rekha Sethi
+Mr. Israel Makov
+Director
+The details of Equity Shares held by Non-
+Executive Directors as on March 31, 2021 are as
+follows:
+The remuneration of Whole-time Directors
+consists only of fixed components except for
+Mr. Kalyanasundaram Subramanian.
+There is no separate provision for payment of
+severance fees to Whole-time Director(s).
+to terminate the Agreement by giving to the other
+party 3 months' notice in writing.
+Statutory Reports
+Corporate Governance
+e)
+50000
+May 27, 2020; July 30, 2020; November 3, 2020 and
+January 28, 2021.
+The attendance of each Member of the Committee is
+given below:
+Nil
+Nil
+Meetings entitled
+Relationship
+Committee
+Investor Complaints:
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Mr. Gautam Doshi
+The terms of reference of the Committee inter alia
+include the following: Resolving the grievances of the
+security holders of the Company including complaints
+related to transfer/transmission of shares, non-receipt
+of annual report, non-receipt of declared dividends,
+issue of new/duplicate certificates, general meetings;
+Review of measures taken for effective exercise of
+voting rights by shareholders; Review of adherence
+to the service standards adopted by the Company
+in respect of various services being rendered by the
+Registrar & Share Transfer Agent; Review of the
+various measures and initiatives taken by the Company
+for reducing the quantum of unclaimed dividends and
+ensuring timely receipt of dividend warrants/annual
+reports/statutory notices by the shareholders of the
+Company, to investigate any activity within its terms
+of reference, to seek information from share transfer
+agents, to obtain outside legal or other professional
+advice and to secure attendance of outsiders with
+relevant expertise, if it considers necessary and have
+full access to the information contained in the records
+of the Company etc.
+Committee
+Mr. Sunil R. Ajmera, the Company Secretary of the
+Company is the Secretary of the Committee. Mr. Sunil
+R. Ajmera and Mr. Ashok Bhuta are Compliance
+Officers of the Company.
+STAKEHOLDERS' RELATIONSHIP COMMITTEE
+Mr. Sudhir Valia
+Number of
+Stakeholders'
+Name of the Director
+14345019
+8000
+Nil
+The Stakeholders' Relationship Committee presently
+comprises of three Directors viz. Mr. Gautam
+Doshi, Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia.
+Mr. Gautam Doshi is the Chairman of the Committee.
+The constitution of the Stakeholders' Relationship
+Committee meets with the requirements of Section
+178 of the Companies Act, 2013 and also of Regulation
+20 of the Listing Regulations.
+2
+Mr. Sudhir V. Valia
+2
+Crystal Hall, Grand Mercure Vadodara Surya
+Palace, Opposite Parsi Agyari, Sayajigunj,
+Vadodara 390 020
+Location
+Annual Report 2020-21
+AGM
+Twenty-Eighth
+2019-2020
+AGM
+Twenty-Seventh
+2018-2019
+AGM
+Meeting
+Twenty-Sixth
+2017-2018
+Year
+(i) Location and time of the last three Annual General Meetings:
+12. GENERAL BODY MEETINGS
+Crystal Hall, Grand Mercure Vadodara Surya
+Palace, Opposite Parsi Agyari, Sayajigunj,
+Vadodara 390 020
+Date
+Time
+September 26,
+2018
+(2) Approval of remuneration to be paid to
+commission paid to Non-executive Directors for
+the year 2013-14 pursuant to the letter received
+from MCA in respect of abatement of the pending
+applications for approval of remuneration
+At the Twenty-Seventh Annual General Meeting
+(1) Approval for consent/ratification of excess
+(3) Approval for continuation of Directorship of
+Mr. Israel Makov (DIN:05299764), Non-executive
+Director and Chairman of the Company, having
+attained the age beyond the age of 75 years
+as required under Regulation 17(1A) of SEBI
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015 effective from April 01, 2019.
+(2) Approval for re-appointment of Mr. Sailesh T.
+Desai (DIN: 00005443) as Whole-time Director
+of the Company upon the expiry of his present
+term of office on March 31, 2019, for a further
+period of 5 (Five) years commencing from April
+01, 2019 to March 31, 2024 and remuneration for
+a period of 3(three) years commencing from April
+01, 2019 to March 31, 2022.
+(1) Approval for re-appointment of Mr. Sudhir V. Valia
+(DIN: 00005561) as Whole-time Director of the
+Company upon the expiry of his present term of
+office on March 31, 2019, for a further period of
+5 (Five) years commencing from April 01, 2019 to
+March 31, 2024 and remuneration for a period of
+3(three) years commencing from April 01, 2019 to
+March 31, 2022.
+At the Twenty-Sixth Annual General Meeting.
+The policy for determining material subsidiaries
+of the Company is available on the website of
+the Company and can be accessed at:
+https://www.sunpharma.com/policies.
+c)
+a)
+(ii) Special Resolutions passed at the last three Annual
+General Meetings:
+Sun Pharmaceutical Industries Limited
+CARE
+71
+Held through Video Conferencing and deemed to August 27, 2020 3:30 p.m.
+be held at the registered office of the Company
+at SPARC, Tandalja, Vadodara - 390012, as per
+the guidelines issued by the Ministry of Corporate
+Affairs (MCA) vide General Circular No. 14/2020
+dated April 8, 2020, General Circular No.17/2020
+dated April 13, 2020 and General Circular No.
+20/2020 dated May 05, 2020
+August 28, 2019 3:15 p.m.
+2:45 p.m.
+b)
+The Board of Directors of the Company reviewed
+periodically, the statement of all significant
+transactions and arrangements entered into by the
+unlisted subsidiary companies. Copies of the Minutes
+of the Board Meetings of the unlisted subsidiary
+Companies were placed at the Board Meetings of the
+Company held during the year.
+The financial statements including investments made
+by the unlisted subsidiaries were placed before and
+reviewed by the Audit Committee of the Company.
+Ms. Rekha Sethi, Independent Director of the
+Company is also Director on the Board of Sun Pharma
+Laboratories Limited and Sun Pharma Distributors
+Limited. Mr. Gautam Doshi, Independent Director
+of the Company is also Director on the Board of Sun
+Pharma Global FZE and Sun Pharma Holdings.
+Six meetings of the Corporate Governance and Ethics
+Committee were held during the year ended March 31,
+2021. The dates on which the Meetings were held are
+as follows:
+from benchmarking wherever possible with the best
+practices that are comparable across the industry; to
+monitor Company's compliance with the Corporate
+Governance Guidelines and applicable laws and
+regulations and make recommendations to the Board
+on all such matters and on any corrective action to be
+undertaken, as the Committee may deem appropriate;
+to set forth policies in respect of furtherance of its
+objectives and recommend changes and monitor and
+review compliance of such policies by the Company's
+directors, officers and employees; to review,
+recommend changes and monitor the implementation
+of the Related Party Transactions Policy of the
+Company and ensure that the Company is in
+compliance with the applicable regulations in respect
+of Related Party transactions from time to time etc.
+The Corporate Governance and Ethics Committee
+reports to the Audit Committee.
+in spirit, substance and intent perspective apart
+Statutory Reports
+Corporate Governance
+70
+The Corporate Governance and Ethics Committee
+comprises of Mr. Gautam Doshi, Director, Ms. Rekha
+Sethi, Director, Dr. Pawan Goenka, Mr. C. S.
+Muralidharan, Chief Financial Officer and Mr. Ashok
+Bhuta Senior GM - Secretarial & Compliance Officer
+as the members of the Committee. Mr. Gautam
+Doshi is the Chairman of the Committee. Dr. Pawan
+Goenka has been appointed as the member of the
+Committee with effect from May 27, 2021. The
+terms of reference of committee inter alia include:
+to review the ethical standards and best practices in
+respect of Corporate Governance by the Company
+10. CORPORATE GOVERNANCE AND ETHICS
+COMMITTEE
+April 24, 2020; May 26, 2020; July 30, 2020; August
+31, 2020; November 2, 2020; and January 27, 2021.
+The Risk Management Committee presently comprises
+of Mr. Dilip S. Shanghvi, Managing Director of the
+Company, Mr. Gautam Doshi, Mr. Sudhir V. Valia,
+Directors of the Company and Mr. C. S. Muralidharan,
+Chief Financial Officer of the Company. The Chairman
+of the Committee is Mr. Dilip S. Shanghvi. Mr. Gautam
+Doshi, Independent Director, has been appointed as
+the member of the Risk Management Committee with
+effect from May 20, 2021. Mr. Sunil R. Ajmera, the
+Company Secretary of the Company is the Secretary
+of the Committee. The constitution of the Committee
+meets the requirements of Regulation 21 of the
+Listing Regulations. Pursuant to the amendments to
+the Listing Regulations on May 5, 2021, the terms of
+reference of the Risk Management Committee were
+revised with effect from May 27, 2021. The revised
+9.
+Ms. Rekha Sethi
+Mr. Sudhir V. Valia
+2
+2
+2
+2
+Mr. C S Muralidharan
+RISK MANAGEMENT COMMITTEE
+At the Twenty-Eighth Annual General Meeting
+(1) Approval of maximum remuneration of
+The attendance of each Member of the Committee is
+given below:
+Mr. Gautam Doshi
+In accordance with Regulation 16 of the Listing
+Regulations during the year ended March 31, 2021,
+Sun Pharmaceutical Industries, Inc and Taro Pharma
+USA & Canada were material unlisted foreign
+subsidiary companies whose turnover or net worth
+as per Companies Act, 2013 exceeded 10% of the
+consolidated turnover or net worth respectively, of
+the Company and its subsidiaries in the immediately
+preceding accounting year and Sun Pharma
+Laboratories Limited, Sun Pharma Distributors Limited
+and Sun Pharma Holdings, Mauritius were material
+unlisted subsidiary companies whose turnover or net
+worth as per Companies Act, 2013 exceeded 20% of
+the consolidated turnover or net worth respectively,
+of the Company and its subsidiaries in the immediately
+preceding accounting year.
+11. SUBSIDIARY COMPANIES
+6
+6
+6
+6
+6
+Name of the Member
+6
+6
+Number of
+Corporate
+Governance &
+Ethics Committee
+Meetings attended
+to attend
+Number of
+Corporate
+Governance &
+Ethics Committee
+Meetings entitled
+Mr. Ashok Bhuta
+Mr. C S Muralidharan
+Ms. Rekha Sethi
+6
+532
+O
+0.80
+49509
+I. Foreign Portfolio Investor (Corporate)
+H. Trusts
+G. NRIS/OCBS
+Directors
+F.
+E. Indian Public
+D. Private Corporate Bodies
+C. Banks/Financial Institutions and Insurance Companies
+B. Mutual Funds and UTI
+A. Indian Promoters and Persons acting in Concert
+Particulars
+15.12 Category-wise Shareholding as on March 31, 2021 of Equity Shares
+92.43
+100.00
+2,399,334,970
+100.00
+J. Foreign National
+K. Foreign Bank and Foreign Companies
+L. IEPF
+M. Others
+Total
+8648013
+0.10
+2493747
+7.34
+176103917
+3.27
+78437932
+731,768
+9.65
+11.93
+54.48
+Percentage
+286344897
+1307134535
+No. of Shares
+Annual Report 2020-21
+231552798
+0.36
+2217740930
+640
+inn
+% to total folios
+4.23
+Shares of face value *1/- each
+Numbers
+99.17
+% to total folios
+1836
+2743
+725695
+No. of folios
+Numbers
+5001 10000
+10001 20000
+No. of Equity Shares held
+Upto 5000
+15.11 Distribution of Shareholding as on March 31, 2021
+Effective from April 1, 2019, SEBI has mandated that shares can be transferred only in Demat. Hence no transfer of
+shares in physical form can be lodged by the shareholders.
+15.10 Share Transfer System
+2000130000
+30001 - 40000
+40001 - 50000
+50001100000
+100001 and above
+0.75
+0.22
+0.22
+101487883
+19510750
+23629995
+8519710
+5265421
+5317201
+17863080
+0.03
+245
+0.02
+0.09
+117
+149
+0.05
+343
+0.25
+0.37
+0.81
+0.98
+0.36
+Total
+0.02
+19137330
+0.80
+279978304
+There are no Stock Options outstanding as on March
+31, 2021.
+Outstanding Stock Options
+31, 2021.
+The Company does not have any outstanding GDRs/
+ADRs/Warrants/Convertible Instruments as on March
+15.14 Outstanding GDRs/ADRs/Warrants or any
+Convertible instruments, conversion date and likely
+impact on equity:
+(Source: Compiled from data available on NSE and BSE website)
+206.06 5445.70 5651.76
+BSE
+NSE BSE + NSE
+388.72 10519.13 10907.86
+(Million)
+In value terms
+(in Thousands)
+In no. of shares
+Our Company's equity shares are fairly liquid and are
+actively traded on National Stock Exchange of India
+Ltd., (NSE) and The BSE Ltd. (BSE). Relevant data for
+the average daily turnover for the financial year FY
+2020-21 is given below:
+Liquidity:
+About 99.70% of the outstanding Equity shares
+have been dematerialised up to March 31, 2021.
+Trading in Shares of the Company is permitted only in
+dematerialised form.
+Outstanding Unclaimed Shares
+The status of outstanding unclaimed shares in the
+Unclaimed Share Suspense Account of the Company is
+as under:-
+Particulars
+Aggregate number of
+shareholders and the
+outstanding shares lying in
+the Unclaimed Suspense
+Account as on April 1, 2020.
+Number of shareholders who
+approached the Company
+for transfer of shares from
+the said Unclaimed Suspense
+Account during the period
+from April 1, 2020 up to
+March 31, 2021
+78
+*The voting rights in respect of these shares shall remain
+frozen till the claim of the righteous shareholders is approved
+by the Company.
+as on March 31, 2021.
+Unclaimed Suspense Account
+outstanding shares lying in the
+shareholders and the
+130716
+15.13 Dematerialisation of Shares
+296
+0
+0
+0
+No. of equity
+shares
+of *1/- each
+130716
+296
+No. of
+Shareholders
+Number of shareholders to
+whom shares were transferred
+from the Unclaimed Suspense
+Account during the said
+period from April 1, 2020 up
+to March 31, 2021.
+Aggregate number of
+0
+(%)
+Others
+Foreign Banks and Foreign Companies
+IEPF
+11.67
+0.00
+Shareholding Pattern as on March 31, 2021:
+Sun Pharmaceutical Industries Limited
+CARE
+77
+100.00
+2399334970
+d)
+0.32
+0.08
+1900039
+0.00
+31549
+0.00
+23092
+11.67
+7548817
+Fax: 022-49186060
+0.36
+7.34
+Foreign National
+Foreign Portfolio Investor(Corporate)
+Trusts
+NRIs / OCBs
+Directors
+Indian Public
+Banks/ Financial Institutions and Insurance Companies
+Private Corporate Bodies
+0.10
+Mutual Funds and UTI
+54.48
+0.08
+0.32
+0.00
+O
+11.93
+9.65
+3.27
+Indian Promoters & Persons Acting in Concert
+519
+E-Mail: rnt.helpdesk@linkintime.co.in
+Tel: 022-49186270
+C 101, 247 Park, LBS Marg,
+586
+595
+592
+598
+650
+13635
+511
+13982
+O
+500
+O
+13000
+532
+O
+13500
+14000
+14500
+O
+600
+14529
+14691
+11388
+11642
+11000
+400
+11500
+12000
+450
+15000
+12969
+O
+12500
+473
+464
+474
+500
+550
+466
+O
+11248
+15500
+O Closing Price of Sun Pharma's Share on BSE
+40000
+44150
+Ο
+O
+466
+475 473
+465
+500
+46286
+47751
+512
+501
+O
+45000
+550
+500000
+39614
+38628
+37607
+38068
+Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
+Sep-20
+Jun-20 Jul-20 Aug-20
+BSE Sensex (Closing)
+Apr-20 May-20
+200
+25000
+250
+Sun Pharmaceutical Industries Limited & NSE Nifty closing price:
+300
+400
+450
+30000
+32424
+33718
+34916
+35000
+350
+11073
+10500
+350
+50.17%
+20.63%
+3 Years
+-24.51%
+45.26%
+20.74%
+-3.33%
+28.02%
+24.69%
+2 Years
+-1.54%
+26.38%
+24.84%
+1.67%
+68.01%
+-29.54%
+-27.10%
+89.84%
+-116.94%
+Link Intime India Pvt. Ltd.
+(Share transfer and communication regarding share
+certificates, dividends and change of address)
+Registrars & Transfer Agent
+15.9 Registrars & Transfer Agent
+(Source: Compiled from data available on BSE and NSE website)
+15.92%
+154.61%
+69.68%
+170.53%
+18.37%
+151.82%
+170.19%
+-122.44%
+95.37%
+-27.07%
+5 Years
+10 Years
+Year-on-Year
+-1.18%
+70.87%
+76
+Closing Price of Sun Pharma's Share on NSE
+Mar-21
+Oct-20 Nov-20 Dec-20 Jan-21 Feb-21
+Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20
+........ NSE Nifty (Closing)
+200
+8000
+Statutory Reports
+Corporate Governance
+8500
+9000
+9580
+9860
+9500
+300
+O
+10302
+10000
+250
+Vikhroli West, Mumbai 400 083
+15.8 Share price performance relative to NIFTY and BSE Sensex based on share price on March 31, 2021
+Period
+69.68%
+Sensex
+Sun Pharma
+relative to
+BSE Sensex
+Sun Pharma
+Share Price
+Period
+Sun Pharma
+relative to Nifty
+% change in
+Share Price
+Sun Pharma
+% change in
+10 Years
+5 Years
+3 Years
+2 Years
+Year-on-Year
+Nifty
+7.
+520
+Yes
+Annual Report 2020-21
+85
+Sun Pharmaceutical Industries Limited
+CARE
+2,399.3 Million
+Section B
+Over 100 markets served across 6 continents - Asia,
+North America, Europe, Africa, South America and Australia
+Financial Details of the Company
+23
+Total Turnover (*)
+Total Profit after Taxes (*)
+4
+Total spending on Corporate Social Responsibility
+(CSR) as percentage of Profit after Tax (%)
+5
+1 Paid-up Capital (*)
+Pan-India Distribution Network
+Vadodara (Gujarat) and Mumbai (Maharashtra) respectively
+Registered and Corporate offices:
+SPARC, Tandalja, Vadodara - 390 020, Gujarat
+http://www.sunpharma.com/
+secretarial@sunpharma.com
+01-April-2020 to 31-March-2021
+'Pharmaceuticals' is the primary reportable segment.
+List three key products/services that the Company Tildrakizumab, Levulan Kerastick, Cip-Isotretinoin
+manufactures / provides (as in balance sheet)
+Total number of locations where business activity As below
+is undertaken by the Company
+1. Number of international locations (Provide
+details of major 5)
+2. Number of national locations
+10 Markets served by the Company - local / state /
+national/international
+US, Romania, Japan, Canada, Russia
+Facilities: Halol, Baska, Panoli, Karkhadi, Ankleshwar and Dahej (all in
+Gujarat), Baddi, Batamandi and Paonta Sahib (all in Himachal Pradesh),
+Mohali and Toansa (both in Punjab), Malanpur and Dewas (both in Madhya
+Pradesh), Samba and Jammu (both in J&K), Ahmednagar (Maharashtra),
+Maduranthakam (Tamil Nadu), Guwahati (Assam), Sikkim, Dadra, Silvassa,
+Telangana, and Goa
+R&D Centres: Vadodara (Gujarat), Mumbai (Maharashtra) and Gurugram
+(Haryana)
+List of activities in which the above expenditure
+has been incurred
+Sun Pharmaceutical Industries Limited
+125,709.3 Million (standalone)
+As per regulatory requirements, the Company was required to spend
+*129.81 Million towards CSR for FY21 on standalone basis.
+However, we spent $269.50 Million on CSR activities for the year on
+standalone basis
+3
+# Designation
+b. Details of the BR head:
+1
+# DIN number (if applicable)
+2
+# Name
+# Name
+# Designation
+4
+# Telephone number
+5
+# e-mail id
+00179072
+3
+2
+# DIN number
+1
+Refer Principle 8 - 'Equitable Development'
+1
+2
+3
+Section C
+Other Details
+Do the Subsidiary Company / Companies
+participate in the BR initiatives of the parent
+company? If yes, then indicate the number of such
+subsidiary company(s)
+Do any other entity / entities (e.g. suppliers,
+distributors etc.) that the Company does business
+with; participate in the BR initiatives of the
+Company? If yes, then indicate the percentage of
+such entity/entities? [Less than 30%, 30-60%,
+More than 60%]
+There is no direct participation.
+The Company has not instituted any process to monitor / verify whether
+any other entity / entities (e.g. suppliers, distributors etc.) that the
+Company does business with, participate in the BR initiatives of the
+Company.
+1.
+Section D
+BR Information
+a. Details of the Director / Directors responsible for implementation of the BR (Business Responsibility) policy /
+policies:
+2.
+21,397.0 Million (standalone)
+(industrial activity code-wise)
+Sector(s) that the Company is engaged in
+Financial year reported
+This report is neither an assurance as to the future
+viability of the Company nor the efficiency or
+effectiveness with which the management has
+conducted the affairs of the Company.
+10. This report is addressed to and provided to the
+members of the Company solely for the purpose of
+enabling it to comply with its obligations under the
+Listing Regulations with reference to compliance with
+the relevant regulations of Corporate Governance
+and should not be used by any other person or for
+any other purpose. Accordingly, we do not accept or
+assume any liability or any duty of care or for any other
+purpose or to any other party to whom it is shown
+or into whose hands it may come without our prior
+consent in writing. We have no responsibility to update
+this report for events and circumstances occurring
+after the date of this report.
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+per Paul Alvares
+Partner
+Membership Number: 105754
+UDIN: 21105754AAAACW5257
+9.
+Place of Signature: Pune
+Date: May 27, 2021
+83
+Sun Pharmaceutical Industries Limited
+CARE
+Business Responsibility Report - FY21
+Message from the Director's Desk
+We are living in times where unpredictability is the
+new normal. From disruptive virus strains to political
+uncertainties, extreme climate conditions to fast
+technological changes, the future seems unforeseeable.
+Annual Report 2020-21
+OTHER MATTERS AND RESTRICTION ON USE
+Based on the procedures performed by us, as referred
+in paragraph 7 above, and according to the information
+and explanations given to us, we are of the opinion
+that the Company has complied with the conditions
+of Corporate Governance as specified in the Listing
+Regulations, as applicable for the year ended March
+31, 2021, referred to in paragraph 4 above.
+8.
+(f)
+Risk Management Committee meetings;
+(g) Corporate Social Responsibility Committee
+meetings;
+(h) Corporate Governance and Ethics
+Committee meetings; and
+(i)
+Independent Directors meeting
+Obtained necessary declarations from the
+directors of the Company.
+Obtained and read the policy adopted by the
+Company for related party transactions.
+vii. Obtained the schedule of related party
+transactions during the year and balances at the
+year-end. Obtained and read the minutes of the
+audit committee meeting where in such related
+party transactions have been pre-approved prior
+by the audit committee.
+82
+Statutory Reports
+Corporate Governance
+viii. Performed necessary inquiries with the
+management and also obtained necessary specific
+representations from management.
+The above-mentioned procedures include examining
+evidence supporting the particulars in the Corporate
+Governance Report on a test basis. Further, our
+scope of work under this report did not involve us
+performing audit tests for the purposes of expressing
+an opinion on the fairness or accuracy of any of the
+financial information or the financial statements of the
+Company taken as a whole.
+OPINION
+What we can see very clearly though is the importance of
+health - human, economic as well as environmental health.
+Sustainability of every resource will be the key to survive
+and thrive in the midst of volatility.
+While in the middle of the second wave of the Covid-19
+pandemic, the healthcare industry including the
+pharmaceutical companies and the medical fraternity are
+trying their best to flatten the curve of rising infection
+cases, accelerate vaccination and test more innovative
+drugs and solutions to counter the newer Covid-19 variants.
+KEY HIGHLIGHTS
+Sun Pharma has focussed on a multi-pronged approach to
+overcome the challenges of the COVID-19 pandemic which
+includes (i) Maintaining manufacturing continuity to ensure
+regular supply of medicines to customers/patients across
+the world, (ii) Supporting the Government of India in its
+fight against the pandemic by donating COVID-19 specific
+medicines, hand sanitisers, masks and PPE Kits, (iii) Focus
+on safety and well-being of our employees across all our
+offices, R&D centres and manufacturing units. In addition,
+our products like Remdesivir, Itolizumab, Favipiravir,
+Liposomal Amphotericin B, etc. are used in treating
+COVID-19 and associated ailments.
+OVERVIEW
+Sun Pharmaceutical Industries Limited, including its
+subsidiaries and associate companies is the fourth largest
+specialty generic pharmaceutical company in the world with
+global revenues of about US$ 4.5 Billion at consolidated
+1234567
+8
+9
+Section A
+General Information About the Company
+level. Supported by 44 manufacturing facilities globally,
+we provide high-quality, affordable medicines, trusted by
+healthcare professionals and patients, to more than 100
+countries across the globe.
+Being a global pharma leader, we at Sun Pharma strongly
+believe that business and responsibility are the two sides of
+the same coin. The real growth is at the intersection of the
+three bottom lines - economic, environmental and social.
+This responsible approach has been the hallmark of
+our Company since many years, but eight years ago we
+integrated all these components into one interconnected
+model based on the National Voluntary Guidelines (NVG).
+It helped us in focussing our efforts towards all our
+stakeholders.
+This Business Responsibility Report is our demonstration of
+the triple bottom line approach to business. In accordance
+with SEBI's proposed index and the nine principles of the
+Government of India's 'National Voluntary Guidelines on
+Social, Environmental and Economic Responsibilities of
+Business', the report enunciates our plans and actions to
+build our business responsibly.
+Corporate Identity Number (CIN) of the Company L24230GJ1993PLC019050
+Name of the Company
+Registered address
+Website
+E-mail id
+Whole-time Director
+Kalyanasundaram Subramanian
+Kalyanasundaram Subramanian
+This Business Responsibility Report (BRR) is a testament
+of our responsibility towards all our stakeholders. We
+welcome your valuable insights and feedback to enrich our
+understanding and enhance our sustainability performance.
+We also thank all the frontline warriors for their invaluable
+contribution in the fight against pandemic, our employees
+for their selfless and tireless efforts to serve the community
+and ensuring continued production of all medicines during
+this challenging period.
+With healthcare going to remain the lynchpin,
+pharmaceutical companies would continue to play a
+key role. As the world's 4th largest speciality generic
+pharmaceutical company, the onus is to make more and
+more high-quality medicines affordable and accessible.
+Making these twin purposes possible will be innovation
+and expanding our footprint, coupled with increasing
+our community outreach and reducing our environment
+footprint. This holistic outlook would surely lead us to a
+more sustainable future.
+This extends to a triple bottom line approach where we
+extend the philosophy of enhancing the quality of life by
+focussing on Employee Wellness, Community Wellness and
+Environment Wellness.
+EMPLOYEE WELLNESS
+Our multi-cultural team is our most valuable asset. Diverse
+cultural perspectives inspire creativity and drive innovation.
+With a total strength of 37,000+ employees at consolidated
+level, we invest our energy in engaging, nurturing and
+motivating them to grow. Our comprehensive Human
+Resources (HR) Policy covers the whole gamut of employee
+management, from recruitment to retention.
+We continue to invest in their professional growth and
+to inculcate the value of responsible growth in them.
+So, they understand that their progress is linked with
+providing innovative solutions to address patient's needs,
+community's upliftment and environment's protection.
+FY21 saw the safety and skill up-gradation training of
+approximately 92% of our total employees, including 31% of
+permanent women employees.
+COMMUNITY WELLNESS
+While making medicines more accessible and affordable is
+our purpose, we push the envelope further by enhancing
+our efforts to mainstream the socially marginalised.
+Healthcare, education, infrastructure & rural development,
+safe drinking water & sanitation, environment conservation
+and disaster relief are some of our key priorities enunciated
+in our comprehensive Corporate Social Responsibility (CSR)
+Policy.
+We continue to undertake various local level community
+programmes based on the needs of the society, while also
+contributing to national interests. During the Covid-19
+outbreak, we committed monetary, medical and material
+support to contribute in India's pandemic response. In FY21,
+we invested *269.5 Million for the implementation of CSR
+projects.
+ENVIRONMENT WELLNESS
+At Sun Pharma, we are fully committed to achieve
+excellence in Environment, Health & Safety (EHS) and
+conduct our activities in the most responsible manner. The
+importance of EHS is continually stressed and extensively
+promoted as a part of our corporate culture. A robust EHS
+policy enunciates our commitment to create a safe and
+healthy workplace, and a clean environment for employees
+and the community at large.
+84
+Statutory Reports
+Business Responsibility Report
+The key tenets of our policy include waste management,
+conservation measures, increasing efficiency, green energy
+and implementing Clean Development Mechanism (CDM)
+projects at our facilities thus reducing impact on the
+environment. As of now, we have 14 facilities equipped with
+the biomass fuelled boilers, with a total steam generation
+capacity of 129 TPH. In FY21, we also generated around
+36.5 million kWh of clean energy (solar and wind energy).
+Regards,
+Whole-time Director
+Mr. Kalyanasundaram Subramanian, Whole-time Director of Sun
+Pharma, oversees the BR implementation. The Company does not
+have a BR head, as of now.
+Principle-wise (as per NVGs) BR policy/policies (Reply in Y/N)
+Indicate the frequency with which the Board of
+Directors, Committee of the Board or CEO assess
+the BR performance of the Company. Within 3
+Annual
+2
+months, 3-6 months, annually, more than 1 year
+Does the Company publish a BR or a Sustainability The BR report for FY21 is a part of the annual report and can also be
+Report?
+accessed through the link: https://sunpharma.com/investors-annual-
+What is the hyperlink for viewing this report? How reports-presentations/ It is published annually.
+frequently it is published?
+Principle 1
+1
+Ethics, Transparency and Accountability
+Annual Report 2020-21
+87
+88
+Sun Pharmaceutical Industries Limited
+CARE
+Our corporate governance philosophy values the following
+principles:
+At Sun Pharma, our values of quality, reliability, consistency, innovation and trust are deeply embedded in our
+corporate culture and governance systems. We have a comprehensive governance framework that builds transparency,
+accountability, compliance focus and risk management into all our business endeavours. Our Global Code of Conduct (CoC)
+encapsulates our corporate spirit and standards for business ethics. Our Board of Directors and employees are expected
+to adhere to the standards set forth in the CoC in letter and spirit. Our Global CoC is accessible at https://sunpharma.com/
+policies/. We have developed numerous corporate policies that anchor ethical, transparent and fair business practices.
+These policies can be accessed at https://sunpharma.com/policies/. The CoC and other corporate policies are periodically
+updated based on the emerging requirements and stakeholder feedback. In the reporting year, we received two
+stakeholder complaints, which were resolved satisfactorily.
+Governance related to BR
+3.
+It will be done in due course.
+implement the policy /
+policies?
+9
+Does the Company have
+a grievance redressal
+mechanism related to the
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+10
+policy/policies to address
+stakeholders' grievances
+related to the policy/
+policies?
+Has the company carried
+out independent audit /
+evaluation of the working of
+this policy by an internal or
+external agency?
+• High levels of transparency
+• Accountability
+• Consistent value systems
+• Delegation of responsibility across all facets of
+operations
+d.
+Nomination & Remuneration Committee
+e.
+f.
+Risk Management Committee
+Stakeholders Relationship Committee
+• Rilutor (Riluzole): Used for treating Amyotrophic Lateral
+Sclerosis (a life-threatening disease), is distributed free of
+cost to all patients
+• Decitabine: An enabler to oncology therapy, it is sold at a
+significantly lower price compared to innovator's product
+Covid-19 Response
+We made donations of COVID-19 specific medicines, hand
+sanitisers and PPEs in countries across the globe. In India,
+we donated *250 Million of Hydroxychloroquine Sulfate
+(HCQS), Azithromycin, other related drugs and hand
+sanitisers. We also donated 2.5 million HCQS tablets in the
+U.S. for COVID-19 treatment.
+In addition, we have launched in India, products like
+Remdesivir, Itolizumab and Favipiravir, which are used in
+COVID-19 treatment.
+We also significantly increased supplies of Liposomal
+Amphotericin B which is used in treating COVID-19 related
+complications.
+Empowering Communities
+We are united, with one common purpose: to make good
+health accessible and affordable to local communities and
+society at large. While we continue working to make our
+products reach far and wide, we also work more to uplift
+our nearby communities. By sourcing local labour and
+material, we empower the people surrounding our plants.
+This not only boosts the local economy, but also helps us
+reduce the carbon footprint.
+88
+Corporate Social Responsibility (CSR) Committee
+in-house structure to
+Corporate Governance & Ethics Committee
+C.
+The below enablers ensure that these principles translate
+into consistent practice.
+Leadership
+At Sun Pharma, the leadership, including the Board of
+Directors, bring to the table, a wealth of experience,
+international exposure and the spirit of entrepreneurship
+to strategically develop and implement policies with ethics,
+accountability and transparency that leads to sustainable
+growth. Our Directors are at the forefront of driving our
+commitment to business ethics and sustainable business
+practices. The Board collectively spearheads compliance
+and drives action on our strategic objectives. We have a
+well-defined Delegation of Authority (DOA) that embeds
+Principle 2
+Product Life Cycle Sustainability
+We produce a comprehensive, diverse and highly
+complementary portfolio of generic and specialty
+medicines, targeting a wide spectrum of chronic and acute
+treatments. Our product portfolio includes generics,
+branded generics, speciality products, over the counter
+(OTC) products, Active Pharmaceutical Ingredients (APIs)
+and intermediates.
+Our vision of 'Reaching People and Touching Lives Globally
+as A Leading Provider of Valued Medicines' means that
+we work towards improving the quality of life - which
+includes affordable access of our products, empowering
+communities and enriching the environment.
+Affordable Access
+Good health is impossible without access to pharmaceutical
+products. Universal health coverage depends on the
+availability of quality-assured affordable health products.
+As one of the leading global generic companies, we provide
+high quality, affordable medicines to patients and doctors in
+more than 100 countries worldwide.
+We offer a wide range of World Health Organisation
+prequalified (WHO PQ) anti-viral products that are supplied
+at very affordable cost in multiple countries in Africa, Latin
+America, CIS, and Asia to fight HIV / AIDS.
+Moreover, we also reach out to those in acute necessity by
+distributing some of our critical life-saving products at no
+cost. Below are some of our products that have broken the
+affordability and accessibility barrier:
+accountability, transparency and agility across our business
+activities. We have established a matrix that details
+the roles and responsibilities for key personnel to drive
+environmental, social and economic impact. This approach
+allows for a consultative and participatory approach to
+decision making. The DoA matrix also supports periodic
+Board oversight across focus areas such as financial
+performance, procurement, employee well-being, and
+community development, among others.
+Board Committees
+Core areas of governance are overseen by dedicated board
+committees to streamline the governance process. These
+committees are:
+a. Audit Committee
+b.
+(e) Stakeholders Relationship Committee
+meeting;
+Yes
+Yes
+Yes
+policies for...
+2
+Has the policy been
+formulated in consultation
+All the policies have been formulated in consultation with the Management of the Company
+and are approved by the Board.
+Yes
+with the relevant
+stakeholders?
+Does the policy conform to
+any national/international
+standards? If yes, specify?
+(50 words)
+All the policies are compliant with the respective principles of NVG guidelines.
+86
+ŵ
+3
+Yes
+Yes
+Yes
+P1
+P2
+P3
+P4
+P5
+P6
+P7
+P8
+P9
+1
+Do you have a policy or
+Yes
+Yes
+Yes
+Yes
+P1
+P2
+P3
+P4
+policy to be viewed online?
+7
+Has the policy been
+formally communicated
+The policies have been formally communicated to internal stakeholders. The external
+stakeholders will be communicated in due course.
+to all relevant internal and
+external stakeholders?
+8
+Does the company have
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Copies will be made available on receipt of written request from shareholders.
+Yes
+Indicate the link for the
+The Board has appointed Mr. Kalyanasundaram Subramanian, Whole-time Director - Sun
+Pharma, to oversee the policy implementation.
+P5
+P6
+Statutory Reports
+Business Responsibility Report
+P7
+P8
+P9
+4
+5
+Has the policy been
+approved by the Board? If
+yes, has it been signed by
+the MD owner / CEO /
+appropriate Board Director?
+Does the company have
+a specified committee
+of the Board / Director
+/ Official to oversee the
+implementation of the
+policy?
+All the policies have been approved by the Board and have been signed by the Managing
+Director.
+6
+Nomination and Remuneration Committee
+meeting;
+Does the Company have any Subsidiary Company Yes
+/ Companies?
+Annual General Meeting (AGM);
+CRISIL Limited
+ICRA Limited
+Rating Agency
+15.18 List of all credit ratings
+Sun Pharmaceutical Industries Limited
+CARE
+79
+Annual Report 2020-21
+Direct no. (+91 22) 4324 2231
+Email: secretarial@sunpharma.com
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324,
+Sun House, Plot No. 201 B/1,
+Sun Pharmaceutical Industries Limited
+Email: nimish.desai@sunpharma.com
+Direct no. (+91 22) 4324 2778
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324,
+Sun House, Plot No. 201 B/1,
+Sun Pharmaceutical Industries Limited
+Email: secretarial@sunpharma.com
+Direct no. (+91 22) 4324 2230
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324,
+Instrument Type
+Bank Facility (Short-Term Scale)
+Long-Term/Short-Term Borrowing
+Commercial Paper
+Bank Facility (Short-Term)
+Bank Facility (Long-Term)
+Commercial Paper
+Rating
+Dilip S. Shanghvi
+Managing Director
+(DIN: 00005588)
+For Sun Pharmaceutical Industries Ltd.,
+80
+Date: May 27, 2021
+I, Dilip S. Shanghvi, Managing Director of Sun Pharmaceutical Industries Limited ("the Company") hereby declare that, to
+the best of my information, all the Board Members and Senior Management Personnel of the Company have affirmed their
+compliance and undertaken to continue to comply with the Global Code of Conduct laid down by the Board of Directors of
+the Company.
+DECLARATION OF COMPLAINCE WITH CODE OF CONDUCT FOR THE YEAR ENDED MARCH 31, 2021
+ANNEXURE 'A' TO CORPORATE GOVERNANCE REPORT
+SAILESH T. DESAI
+Whole-time Director
+(DIN: 00005443)
+For and on behalf of the Board
+Sun House, Plot No. 201 B/1,
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+No revisions in credit rating
+during the financial year
+FY21
+CRISIL A1+
+CRISIL AAA/ Stable
+CRISIL A1+
+[ICRA] A1+
+[ICRA] AAA (Stable)/ [ICRA] A1+ during the FY21
+No revisions in credit rating
+Remarks
+[ICRA] A1+
+Date: May 27, 2021
+Statutory Reports
+Corporate Governance
+Sun Pharmaceutical Industries Limited
+Fax No.: +91 22 49186060
+Registrars & Transfer Agent:
+15.17 Investor Correspondence:
+Plot No. 817/A, Karkhadi - 391 450, Taluka: Padra,
+Dis5. Vadodara, Gujarat.
+Halol-Baroda Highway, Near Anand Kendra, Halol,
+Dist. Panchmahal- 389350 Gujarat.
+Plot No. 4708, GIDC, Ankleshwar - 393 002,
+Gujarat.
+Plot No.24/2 and No.25, GIDC, Phase- IV, Panoli -
+395 116, Dist. Bharuch, Gujarat.
+Survey no. 259/15, Dadra - 396191, U.T. of D. &
+NH.
+Survey No.214 and 20, Govt. Industrial Area,
+Phase-II, Piparia, Silvassa - 396 230, U.T. of D &
+NH.
+6)
+5)
+4)
+3)
+2)
+1)
+15.16 Plant locations as on March 31, 2021:
+The Company is exposed to foreign exchange risks
+emanating from our business, assets and liabilities
+denominated in foreign currency. In order to hedge
+this risk, the Company proactively uses hedging
+instruments e.g. forward contracts, options and other
+simple derivatives from time to time. The Company
+does not have any significant exposure on commodities
+directly.
+exchange risk and commodity hedging activities
+15.15 Disclosure of commodity price risk or foreign
+Statutory Reports
+Corporate Governance
+Individual Investors & Queries Related to
+Shares/Dividend, etc.
+Secretarial Department
+Institutional Investors:
+Mr. Nimish Desai
+Nodal Officer
+(for the purpose of IEPF)
++91 22 49186000
+Tel. No.: +91 22 49186270/
+C 101, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai (INDIA) - 400083
+Unit: Sun Pharmaceutical Industries Limited,
+Link Intime India Private Limited,
+16) Khasra No. 1335-1340, Near Epip Phase-1,
+Hill Top Industrial Area, Vill.-Bhatolikalan, P.O.-
+Barotiwala, Distt-Solan, Himachal Pradesh, India
+- 174103
+-
+Maduranthakam T.K. Kanchipuram Dist. Tamil
+Nadu 603 303.
+15) Sathammai Village, Karunkuzhi Post,
+E-Mail: rnt.helpdesk@linkintime.co.in/sunpharma@linkintime.co.in
+14) Pharma Manufacturing Industrial Area 3 A.B.
+Road, Dewas-455001, Madhya Pradesh
+12) A-41, Industrial Area, Phase VIII-A, Sahibzada Ajit
+Singh Nagar, Mohali-160071 (Punjab)
+11) Village Toansa, P.O. Railmajra Distt.
+Nawansahar-144533 (Punjab)
+(d)
+Plot No. B-2 Madkaim Industrial Estate, Ponda,
+Goa
+9)
+A-7 & A-8, MIDC Industrial Area, Ahmednagar -
+414 111, Maharashtra.
+8)
+7) Plot No. Z/15, Sez-1, Po. Dahej, Taluko vagra,
+Dist. Bharuch, Gujarat.
+Mr. Sunil Ajmera, Company Secretary
+13) Plot No. K - 5,6,7, Ghirongi Industrial Area,
+Malanpur, Dist. Bhind, Madhya Pradesh
+ANNEXURE 'B' TO CORPORATE GOVERNANCE REPORT
+10) Village & PO Ganguwala, Tehsil Paonta
+Sahib-173025, Distt. Sirmour, Himachal Pradesh
+(pursuant to Regulation 34(3) and schedule V para C clause (10) (i) of the SEBI (Listing Obligation Disclosure requirement)
+Regulation, 2015)
+MANAGEMENT'S RESPONSIBILITY
+2.
+3.
+The preparation of the Corporate Governance Report
+is the responsibility of the Management of the
+Company including the preparation and maintenance
+of all relevant supporting records and documents. This
+responsibility also includes the design, implementation
+and maintenance of internal control relevant to
+the preparation and presentation of the Corporate
+Governance Report.
+The Management along with the Board of Directors
+are also responsible for ensuring that the Company
+complies with the conditions of Corporate Governance
+as stipulated in the Listing Regulations, issued by the
+Securities and Exchange Board of India.
+AUDITOR'S RESPONSIBILITY
+4. Pursuant to the requirements of the Listing
+Regulations, our responsibility is to provide a
+reasonable assurance in the form of an opinion
+whether, the Company has complied with the
+conditions of Corporate Governance as specified in the
+Listing Regulations.
+5.
+6.
+We conducted our examination of the Corporate
+Governance Report in accordance with the Guidance
+Note on Reports or Certificates for Special Purposes
+and the Guidance Note on Certification of Corporate
+Governance, both issued by the Institute of Chartered
+Accountants of India ("ICAI"). The Guidance Note on
+Reports or Certificates for Special Purposes requires
+that we comply with the ethical requirements of the
+Code of Ethics issued by ICAI.
+We have complied with the relevant applicable
+requirements of the Standard on Quality Control (SQC)
+1, Quality Control for Firms that Perform Audits and
+Reviews of Historical Financial Information, and Other
+Assurance and Related Services Engagements.
+7.
+The procedures selected depend on the auditor's
+judgement, including the assessment of the risks
+associated in compliance of the Corporate Governance
+Report with the applicable criteria. Summary of
+procedures performed include:
+i. Read and understood the information prepared
+by the Company and included in its Corporate
+Governance Report;
+ii.
+iii.
+iv.
+V.
+vi.
+Obtained and verified that the composition of the
+Board of Directors with respect to executive and
+non-executive directors has been met throughout
+the reporting period;
+Obtained and read the Register of Directors as
+on March 31, 2021 and verified that atleast one
+independent woman director was on the Board of
+Directors throughout the year;
+Obtained and read the minutes of the following
+committee meetings / other meetings held April
+1, 2020 to March 31, 2021:
+(a)
+Board of Directors meetings;
+(b)
+Audit Committee meetings;
+(c)
+The Corporate Governance Report prepared by Sun
+Pharmaceutical Industries Limited (hereinafter the
+"Company"), contains details as specified in regulations
+17 to 27, clauses (b) to (i) and (t) of sub-regulation (2)
+of regulation 46 and para C, D, and E of Schedule V
+of the Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015, as amended ("the Listing Regulations")
+('Applicable criteria') for the year ended March
+31, 2021 as required by the Company for annual
+submission to the Stock exchange.
+06809515
+1.
+The Members of
+14-02-2017
+00179072
+25-03-1999
+00005443
+31-01-1994
+00005561
+00291126
+14-11-2017
+00004612
+25-05-2018
+Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the
+management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate
+is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the
+management has conducted the affairs of the Company.
+For, KJB & CO LLP,
+Practising Company Secretaries,
+Firm Unique Identification No. - L2020MH006600
+Peer Review Certificate No. 934/2020
+Alpeshkumar Panchal
+Partner
+ACS No.: 49008
+CP No.: 20120
+UDIN: A049008C000380614
+Date: May 27, 2021
+Place: Vadodara
+Annual Report 2020-21
+81
+Sun Pharmaceutical Industries Limited
+CARE
+Independent Auditor's Report on compliance with the conditions of Corporate Governance as per provisions of Chapter
+IV of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as
+amended
+Sun Pharmaceutical Industries Limited
+CERTIFICATE
+13-02-2014
+6
+01-03-1993
+Company
+29-05-2012
+Date of Appointment in the
+Director Identification
+Number (DIN)
+05299764
+00005588
+Gautam Bhailal Doshi
+8
+Vivek Chaand Sehgal
+7
+Rekha Sethi
+Kalyanasundaram Subramanian
+5
+Sailesh T. Desai
+3 Sudhir V. Valia
+Dilip S. Shanghvi
+4
+Israel Makov
+1
+No
+Name of the Directors
+Sr.
+In our opinion and to the best of our information and according to the verifications (including Directors Identification
+Number (DIN) status at the MCA portal www.mca.gov.in) as considered necessary and explanations furnished to us by
+the Company & its officers, we hereby certify that none of the Directors on the Board of Directors of the Company as
+stated below for the Financial year ending on March 31 2021 have been debarred or disqualified from being appointed or
+continuing as Directors of the Companies by the Securities Exchange and Board of India, Ministry of Corporate affairs or
+any such other Statutory Authority.
+-
+2
+We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of the Sun
+Pharmaceutical Industries Limited having CIN L24230GJ1993PLC019050 and having registered office at SPARC, Tandalja,
+Vadodara Gujarat - 390012 (hereinafter referred to as 'the Company'), produced before us by the Company for the
+purpose of issuing this certificate, in accordance with Regulation 34(3) read with Schedule V para C sub clause 10(i) of
+the Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015.
+Add: SPARC, Tandalja, Vadodara Gujarat - 390012
+CIN: L24230GJ1993PLC019050
+Sun Pharmaceutical Industries Limited
+The Member of
+To,
+• Focus on improving overall return ratios
+• Increased investments in IT to facilitate business and
+digital transformation
+• Continued focus on cost and operational efficiency
+• Sustained efforts on reducing carbon footprint,
+water consumption and environmental impact
+• Supply chain continuity along with focus on
+inventory optimization
+Our employees are our key assets. Over the last two years,
+they have worked hard to ensure business continuity
+despite the multiple pandemic-induced disruptions, thus
+enabling us to maintain supplies of our products in various
+markets while ensuring overall productivity and without
+compromising on safety protocols.
+Specialty business performance
+Your support to us as a shareholder is of vital importance,
+and we hope that you will continue to repose your
+confidence in us in the future as well.
+Warm regards,
+Dilip Shanghvi
+Managing Director
+Sun Pharmaceutical Industries Limited
+• Sustainable and profitable business growth
+We are grateful to our Board of Directors for their guidance
+and support.
+Top priorities for FY23
+All our businesses are positioned for growth, and we expect
+high-single-digit to low-double-digit consolidated topline
+growth for FY23. Ramp-up in our global specialty business
+is expected to continue. As business operations normalise
+globally, overall expenses are expected to increase. Our
+R&D investments will be about 7-8% of sales in FY23
+with increased spending expected on clinical trials for
+specialty products.
+Overall outlook
+The contribution of our global specialty business has nearly
+doubled from 7% of consolidated revenues in FY18 to
+about 13% in FY22.
+Operational performance
+For FY22, India formulation sales were at 127 Billion, up
+23% and accounted for about 33% of overall revenues.
+Excluding the contribution of COVID products, the
+underlying business performed well, with about 20%
+growth over the previous year.
+Our India business outperformed the average industry
+growth, driven by our leading presence in chronic segments
+coupled with our strong brand equity with doctors. As per
+AIOCD AWACS March 2022 data, our market share increased
+to 8.34% on MAT basis from 8.17% in the previous year.
+As per SMSRC data for February 2022, Sun Pharma ranks
+No. 1 by prescriptions with 11 different classes of doctors.
+We continued our new launches momentum with 77 new
+product introductions in India.
+The India field force expansion undertaken in FY21 met
+with good success and the new field force achieved its
+targets ahead of time.
+a.
+Progress on specialty R&D pipeline - Sun Pharma's
+specialty R&D pipeline has four molecules undergoing
+clinical trials:
+Our subsidiary, Taro, recorded about 2% growth in overall
+revenues to US$ 561 Million. During the year, Taro
+acquired Alchemee (formerly The Proactiv Company)
+from Galderma, including the Proactiv® brand for acne
+treatment. The acquisition further strengthened Taro's
+OTC dermatology portfolio.
+Our Emerging markets (EM) sales grew by 16% to * 67 Billion
+and contributed about 18% of our consolidated revenues.
+In local currency terms, large markets like Russia, Brazil and
+Romania recorded strong double-digit growth. Post the close
+of the financial year, Sun Pharma expanded its OTC presence
+in Romania by acquiring Uractiv™M OTC portfolio from
+Fiterman Pharma. It is the number one brand in its category
+and the portfolio comprises food supplements including
+minerals, vitamins and adjuvants; cosmetics and medical
+devices used for maintaining urinary tract health.
+Our sales in the Rest of World (ROW) markets grew by 11%
+to 54 Billion and contributed about 14% to consolidated
+revenues. Growth was driven by higher sales in Western
+Europe and ramp-up in llumya sales in Australia and Japan.
+Odomzo also gained traction in RoW markets.
+Research & Development (R&D)
+Our R&D investments were approximately 22 Billion, at
+5.8% of overall sales. During the year, we filed approximately
+200 formulation dossiers globally. We continued our R&D
+efforts to develop differentiated generics and innovative
+specialty products. Some of the clinical trials for our
+specialty products got delayed during FY22 due to the
+pandemic but are expected to gradually normalise in FY23.
+We have multiple R&D centres and a strong R&D team
+which enables development of new products for various
+markets globally. We remain disciplined in identifying
+future R&D projects for the US generics market and the
+focus is on developing complex products. Investments for
+developing the long-term specialty pipeline are expected to
+continue and R&D investments are expected to increase as
+clinical trials for specialty products gain traction.
+4
+Corporate Overview
+Statutory Reports
+Financial Statements
+Managing Director's Message
+We continue to focus on improving the efficiency and
+productivity of our R&D operations, targeted at faster
+new product launches and ahead of competition.
+Excluding exceptional items, ROCE improved by 288bps
+to 16.4%, ROIC by 306bps to 21% while ROE improved by
+256bps to 15%.
+Global specialty revenues recorded a strong 39% growth
+to reach US$ 674 million. We witnessed a strong traction
+in global llumya sales, which were up by about 81% to
+US$ 315 million. Cequa, Odomzo and Levulan were the
+other contributors to the ramp-up in the specialty business.
+During the year, we in-licensed and commercialised Winlevi,
+an anti-acne product in the US market. Given its new
+mechanism of action, the medical community has shown
+good interest in prescribing the product to their patients.
+Our global consolidated revenues grew by 15.6% to
+*384 Billion while EBITDA grew by 23.6% to 101 Billion
+with EBITDA margins expanding by 170bps to 26.5% over
+the previous year. Adjusted net profit (excluding exceptional
+items) was up by about 29% to 76 Billion.
+FY22 witnessed robust top-line and EBITDA growth
+with global revenues crossing the US$ 5 billion mark and
+adjusted net profit surpassing the US$ 1 billion mark for
+the first time in Sun Pharma's history. All geographies did
+well, recording double-digit growth, while profitability
+improved despite rising costs.
+Debt repayment during the year was about US$ 355 million;
+over the last three years, we repaid debt of about
+US$ 1.38 billion. At year-end, Sun Pharma had a strong
+net cash position of about US$ 2 billion.
+Debt reduction
+Our focus has always been on sustainable cost reduction
+via technology interventions and process enhancements.
+We are also directing our efforts to reduce working capital
+deployment across our businesses. Sustained efforts
+are being made to further improve our manufacturing
+efficiencies, optimise our manufacturing footprint and
+reduce overall fixed costs.
+Efficiency improvement
+With economies worldwide returning to normalcy and
+the resumption of international travel, global regulatory
+agencies have re-initiated physical visits to manufacturing
+facilities for cGMP inspections. During the year, many of
+our manufacturing plants underwent such inspections
+by multiple regulatory agencies. Adherence to global
+CGMP standards is a key priority for us, and we have an
+unwavering focus on 24x7 compliance to ensure continuity
+of supplies to our customers and patients worldwide.
+After close of the year, the USFDA inspected the Halol
+(Gujarat) facility and issued Form-483 with 10 observations.
+We will submit a comprehensive response including the
+corrective actions to be undertaken for addressing the
+observations within the stipulated timeframe, to the
+USFDA. We are fully committed to meeting all cGMP
+standards and will work closely with the USFDA to
+resolve these observations.
+CGMP compliance
+GL0034-a GLP-1R (Glucagon-Like Peptide-1
+Receptor) agonist - is undergoing Phase-1 clinical
+trials for treating diabetes. The pre-clinical data
+had demonstrated significant outcomes on various
+diabetic parameters, such as glucose reduction,
+decrease in HbA1c, augmented insulin secretion,
+lowering of glucagon level, meaningful reduction in
+triglyceride levels and larger body weight reduction.
+We are enthused about the pre-clinical data and look
+forward to validating it in human trials.
+MM-II - is currently in Phase-2 trials as a potential
+treatment for knee pain in patients with symptomatic
+knee osteoarthritis. MM-II is a product with empty
+multi-lamellar liposomes for treatment of pain
+in osteoarthritis.
+SCD-044 is in Phase-2 clinical trials as a potential
+oral treatment for atopic dermatitis and moderate to
+severe plaque psoriasis. SCD-044 is a selective S1PR1
+modulator with good cardiac safety profile.
+llumya - is undergoing Phase-3 clinical trials for
+psoriatic arthritis. A successful Phase-3 trial, subject
+to regulatory approval, is likely to expand the
+addressable market for llumya.
+d.
+C.
+b.
+Scaling up Specialty. Leading with Care.
+3
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+MANAGING DIRECTOR'S MESSAGE
+Dear Shareholders,
+I am happy to write to you on the completion of a good year
+with strong performance across multiple parameters.
+Normalcy is returning to economic activities globally.
+Patient visits to doctor clinics are improving and new
+product launches are gaining traction.
+Revenues in the US grew by about 13% to 114 Billion
+and accounted for approximately 30% of our consolidated
+revenues for FY22. Specialty sales in US continued to gain
+traction. While the generics business continued to face
+price erosion, we were able to partly compensate it through
+new launches and an efficient supply chain.
+18.9
+The Company had adopted Ind AS accounting standard w.e.f April 1, 2016 with prior period restated from April 1, 2015. Hence, FY16 onwards the
+financials are reported as per Ind-AS and are not strictly comparable with previous years.
+2 2 2 2 2 2 2 2
+45,394
+31,415
+29,831
+395,760
+(CONSOLIDATED)
+KEY PERFORMANCE INDICATORS
+718
+484
+471
+869
+462,229
+b) Revenue
+9,862 18,373 22,242 21,459 20,669 19,129
+19,252 21,028 21,325
+(excluding depreciation)
+c) % of sales
+6.3
+6.5
+7.2
+8.3
+7.6
+8.6
+6.9
+6,616
+477,713
+(* Million)
+(* Million)
+427
+a) Capital
+22,489 19,847 19,736 21,499 22,194
+23,138
+7,042 10,418 19,550 23,025
+R&D expenditure
+29,831 31,415 45,394 45,457 69,644 20,957 26,654 37,649 29,038 32,727
+116,880 166,326 279,397 291,453 322,016 273,282 300,914 334,735 343,337 395,760
+112,999 160,804 273,920 284,870 315,784 264,895 290,659 328,375 334,981 386,545
+(* Million)
+FY22
+FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
+Net profit for the year
+(after minority interest)
+Total income
+Operating performance
+Revenue from operations
+Particular
+TEN YEAR FINANCIAL HIGHLIGHTS
+(CONSOLIDATED)
+Financial Statements
+Key Performance Indicators (Consolidated) | Ten Year Financial Highlights (Consolidated)
+Statutory Reports
+Corporate Overview
+32,727
+37,649
+69,644
+45,457
+(* Million)
+Net profit after minority interest
+6.1
+6.5
+5.8
+Financial position
+bonus/split) (in *)*
+Earnings per share-Basic (in *)*
+28.8
+15.2
+18.9
+18.9
+29.0
+8.7
+11.1
+15.7
+12.1
+13.6
+Earning per share-Diluted (In *)*
+28.8
+15.2
+18.9
+Scaling up Specialty. Leading with Care.
+29.0
+8.7
+11.1
+15.7
+12.1
+13.6
+* During the FY14, the Company issued bonus shares in the ratio of one equity share of *1 for every share held.
+* During the FY16, the Company's equity shares increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the
+Company, wherein 0.80 equity share of 1 each of the Company have been allotted to the shareholders of RLL for every 1 share of ₹5 each held
+by them.
+13.6
+** Property, plant, equipment and other intangible assets (at cost) includes Capital work-in-progress & Intangible assets under development
+** Carrying value of property, plant, equipment and other intangible assets includes Capital work-in-progress & Intangible assets under development
+12.1
+11.1
+Equity share capital
+1,036
+2,071 2,071 2,407 2,399 2,399 2,399 2,399 2,399 2,399
+Reserve and surplus
+Property, plant & equipment and
+other intangible assets (at cost)**
+Carrying value of property, plant
+& equipment and other intangible
+assets**
+Investments
+148,862 183,178 278,009 327,418 363,997 380,742 411,691 450,245 462,229 477,713
+75,763 86,505 143,616 187,212 217,315 238,073 271,424 298,549 308,582 332,393
+45,145 49,827
+96,848 124,130 149,404 157,111 172,919 175,858 168,322 171,971
+24,116 27,860 35,028 18,299 11,919 71,429 79,025 101,431 96,125 128,486
+86,618 126,969 135,488 167,973 150,666 117,716 137,296 159,477 142,965 178,144
+Net current assets
+Stock information
+Number of shares (in Million)
+1,036
+2,071
+2,071 2,407
+2,399 2,399 2,399 2,399 2,399 2,399
+Earnings per share (adjusted for
+12.4
+13.1
+18.9
+18.9
+29.0
+8.7
+15.7
+5
+783 1,679 1,819
+BOARD OF DIRECTORS
+96,848
+124,130
+149,404
+157,111
+172,919
+175,858
+168,322
+171,971
+49,827
+7,042
+27
+19,550
+R&D investment
+2 2 2 2 2 2 2
+23,025
+23,138
+22,489
+19,847
+10,418
+19,736
+45,145
+.
+06
+08
+80
+Managing Director's Message
+Board of Directors
+Leadership Team
+117-294
+FINANCIAL STATEMENTS
+118 Standalone
+2
+198 Consolidated
+NOTICE
+.
+Scaling up Specialty.
+Leading with Care.
+At Sun Pharma, we have built a
+scalable global specialty business
+over the past few years to drive
+sustainable growth. Our R&D
+investments, highly skilled people,
+emphasis on technology and the
+ability to spot the right opportunities
+have enabled us to build a strong
+portfolio of specialty products.
+Sun Pharma has become the first
+Indian pharmaceutical company
+to cross US$ 5 billion in global
+revenues. Our specialty focus
+has started yielding results with
+our global specialty business
+nearly doubling its contribution in
+four years. With four molecules
+undergoing clinical trials in different
+phases, we expect to continue
+scaling up our specialty business
+while moving up the pharmaceutical
+value chain.
+As we continue to enhance our
+focus on innovation, care remains
+integral to our core purpose of
+reaching people and touching lives
+globally. We remain committed
+to patient care and providing
+uninterrupted access to quality
+medicines leveraging our global
+presence and market positioning,
+and making continued investments
+towards creating a shared, healthier
+future for all.
+295-320
+04
+21,499
+148,862
+Total income
+166,326
+279,397
+291,453
+322,016
+273,282
+300,914
+334,735
+13.6
+343,337
+Reserve & surplus
+327,418
+363,997
+380,742
+411,691
+450,245
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+556 1,178
+(*Million)
+22,194
+29.0
+15.7
+183,178
+278,009
+Carrying value of property, plant & equipment
+and other intangible assets**
+(* Million)
+Earning per share
+(adjusted for bonus/split)*
+(per share)
+12.1
+12.4
+* During the FY14, the Company issued bonus shares in the ratio of one equity share of 1 for every share held.
+* During the FY16, the Company's equity shares increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the
+Company, wherein 0.80 equity share of *1 each of the Company have been allotted to the shareholders of RLL for every 1 share of *5 each held
+by them.
+The Company had adopted Ind AS accounting standard w.e.f April 1, 2016 with prior period restated from April 1, 2015. Hence, FY16 onwards the
+financials are reported as per Ind-AS and are not strictly comparable with previous years.
+** Carrying value of property, plant, equipment and other intangible assets includes Capital work-in-progress & Intangible assets under development
+18.9
+8.7
+18.9
+11.1
+13.1
+Ten Year Financial Highlights
+03
+Key Performance Indicators
+Non-Executive and Lead Independent Director
+Sailesh T. Desai
+Whole-time Director
+Scaling up Specialty. Leading with Care.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Board of Directors
+Gautam Doshi
+Non-Executive and Independent Director
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Kalyanasundaram Subramanian
+Whole-time Director
+7
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Dr. Pawan Goenka
+LEADERSHIP TEAM
+Jila Breeze
+Chief Financial Officer
+C. S. Muralidharan
+Chief Information Officer
+(w.e.f. June 20, 2022)
+Senior Vice-President,
+Anil Rao
+Executive Vice-President,
+Head Emerging Markets
+Head - Global Generics R&D
+and Business Development
+Aalok Shanghvi
+Whole-time Director and
+Director Corporate Development
+S. Kalyanasundaram
+Senior Vice-President,
+Head of Human Resources
+CEO - North America
+Dr. Sapna Purohit
+Executive Vice-President,
+Global Head-Quality
+6
+Non-Executive and Non-Independent Director
+Non-Executive and Independent Director
+02
+82 Business Responsibility and Sustainability Report
+CORPORATE OVERVIEW
+02-09
+Corporate Governance
+62
+Board's Report
+33
+10
+Management Discussion and Analysis
+STATUTORY REPORTS
+10-116
+CONTENTS
+PHARMA
+SUN
+Reaching People. Touching Lives.
+Annual Report 2021-22
+Sun Pharmaceutical
+Industries Limited
+Scaling up Specialty.
+Leading with Care.
+.
+.
+-
+.
+.
+Israel Makov
+Chairman, Non-Executive and Non-Independent Director
+Dilip S. Shanghvi
+Managing Director
+Rama Bijapurkar
+Sudhir V. Valia
+Abhay Gandhi
+8
+waste
+stewardship
+155
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+Indicate
+Material
+Sr.
+issues
+8
+No.
+whether
+risk or
+opportunity
+Rationale for identifying risk/
+opportunity
+In case of risk, approach to adapt or
+mitigate
+5
+ESG
+Governance
+6
+7
+Water
+identified
+Managing
+5,135
+efficiency
+0
+0
+Workers
+6.
+Details of complaints with regard to conflict of interest:
+There were no complaints regarding conflict of interest reported in FY 2021-22 and FY 2020-21.
+FY 2021-22
+FY 2020-21
+Number
+Remark
+Number
+Remark
+Number of complaints received in relation to issues of Conflict of Interest of the directors.
+Number of complaints received in relation to issues of Conflict of Interest of the KMPS
+0
+0
+0
+0
+7.
+0
+0
+0
+0
+Has an appeal been preferred?
+(Yes/No)
+Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary
+or non-monetary action has been appealed.
+Case Details
+Scaling up Specialty. Leading with Care.
+Name of the regulatory/enforcement agencies/judicial institutions
+Not applicable
+95
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Provide details of any corrective action taken or underway on issues related to fines/penalties/action taken by
+regulators/law enforcement agencies/judicial institution on cases of corruption and conflicts of interest.
+Not applicable.
+4.
+Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide
+a weblink to the policy.
+Yes, the Anti-bribery policy in the Company's Global Code of Conduct outlines the Company's commitment to
+conduct business with integrity. The Company abides by all the applicable anti-bribery laws including US Foreign
+Corrupt Practices Act (FCPA). The Anti-bribery policy as part of the Global Code of Conduct is applicable to all
+the employees (whether permanent, temporary or on contract, direct or through contractor, retainer or full-time
+consultant), and members of the Board of Directors of the Company ("Personnel"). The Company expects its business
+partners, including suppliers, service providers, agents, channel partners (dealers, distributors and others) to adhere to
+the principles of the code. Weblink - Global Code of Conduct: https://sunpharma.com/policies/.
+Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law
+enforcement agency for the charges of bribery/ corruption:
+In FY 2021-22, there were no cases of disciplinary action taken against any Directors/KMPs/employees/workers by
+any law enforcement agency for the charges of bribery/corruption.
+Directors
+KMPs
+Employees
+FY 2021-22
+FY 2020-21
+5.
+Brief of the Case
+Leadership Indicators
+Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board?
+(Yes/No) If yes, provide details of the same.
+2.b. If yes, what percentage of inputs were sourced sustainably?
+3.
+100% of inputs sourced from critical suppliers is sourced sustainably.
+Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of
+life, for
+(a) Plastics
+(including
+packaging)
+(b) Other waste
+4.
+1.
+2.
+(Expired products)
+Disposing at the end of life
+The Company has an established system for collecting back the plastic waste or multilayered packaging generated
+due to its products as per the Extended Producer Responsibility (EPR) regulations. The recycling and disposal of the
+reclaimed plastics (including packaging) is carried out as per the Central Government rules and the provisions of the
+Plastic Waste Management Rules.
+The Company has a comprehensive standard operating procedure, for handling and safe disposal of saleable and
+non-saleable stock returned by the stockiest.
+Whether Extended Producer Responsibility (EPR) is applicable to the entity's activities (Yes/No).
+• If yes whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted
+to Pollution Control Boards?
+• If not provide steps taken to address the same.
+Yes, the Company endeavors to implement responsible procurement practices across its supply chain. As a measure of
+enhancing its impact on the environment and society, the Company encourages local sourcing enabling the reduction
+in costs, currency risks and environmental footprint of the transportation services.
+2.a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
+Financial Statements
+Business Responsibility and Sustainability Report
+Statutory Reports
+Yes, the Company's Global Code of Conduct expects all its Personnel (Members of the Board) to refrain from engaging
+in any activity or having a personal interest that presents a conflict of interest. Further, the Company outlines that
+Personnel of the Company shall not exploit any information discovered through their position in the Company, for
+their own personal gain.
+SUSTAINABLE BUSINESS
+Principle 2
+Businesses should provide goods and services
+in a manner that is sustainable and safe
+Essential Indicators
+1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the
+environmental and social impacts of product and processes to total R&D and capex investments made by the entity,
+respectively.
+% of Turnover
+FY 2021-22
+1.
+FY 2020-21 Details of improvements in environmental and social impacts
+2.43%
+0.26% Improvement in environmental performance for parameters such as effluent discharged,
+air pollutants released among others
+Capex
+1.62%
+2.55%
+Energy and water conservation initiatives
+96
+Corporate Overview
+R&D
+Yes, the Company is registered as Brand Owner as per the Extended Producer Responsibility (EPR) mandates.
+The Company collects the end use plastic/post-consumer plastic waste from municipal garbage through waste
+management agency. Further the Company has submitted a collection plan outlining its mechanism for collecting back
+the plastic waste and multilayered packaging generated due to the products as per the provisions of Plastic Waste
+Management Rules. The Company submits a quarterly progress report for disposal of the plastic waste/multilayer
+packaging as per the mandates of Extended Producer Responsibility (EPR) regulations.
+Name of the Regulatory/Enforcement
+agencies/Judicial institution
+Has an appeal been preferred?
+(Yes/No)
+Performance against above policies and follow up action
+Compliance with statutory requirements of relevance to
+the principles, and rectification of any non-compliances
+Indicate whether review was undertaken
+by Director/Committee of the Board/
+Any other Committee
+Frequency
+(Annually/Half yearly/Quarterly/
+Any other - please specify)
+РРРРРРРРРРРРРРРРРР
+Periodically/need based basis
+1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8
+Yes Yes Yes Yes Yes Yes Yes Yes Yes
+Yes Yes Yes Yes Yes Yes Yes Yes Yes
+Ongoing basis
+9
+94
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+11. Has the entity carried out independent assessment/ evaluation
+of the working of its policies by an external agency? (Yes/No).
+If yes, provide name of the agency.
+P1 P2 P3 P4 P5 P6 P7 P8 P9
+No, the Company internally reviews the working of the
+above-mentioned policies.
+Subject for Review
+10. Details of Review of NGRBCs by the Company:
+Yes, Kalyanasundaram Subramanian, Whole-time Director, oversees the Business Responsibility and Sustainability initiatives of
+the Company.
+DIN number: 00179072
+(UNGP),
+Sedex
+Members
+Ethical Trade
+Audit, NGRBC
+Governance, Leadership, and Oversight
+a) To reduce water
+consumption by
+10% by 2025,
+considering
+baseline of 2020
+b) To reduce carbon
+12. If answer to question (1) above is "No" i.e., not all Principles are covered by a policy, reasons to be stated:
+Questions
+emissions by
+baseline of 2020.
+(Scope 1&2)
+c) To dispose 30%
+of hazardous
+waste through
+co-processing by
+2025
+The Company has set
+environment targets
+in FY2021-22, hence
+the performance
+against set target will
+not be applicable for
+this reporting period
+Director's Message at the beginning of this Business Responsibility and Sustainability Report.
+Name: Mr. Kalyanasundaram Subramanian,
+Designation: Whole-time Director
+35% by 2030
+considering
+NGRBC
+Principle
+The entity does not consider the principles material to its business (Yes/No)
+The entity does not have the financial or/human and technical resources
+available for the task (Yes/No)
+Percentage of persons in respective category
+covered by the awareness programs
+100%
+100%
+100%
+2.
+Details of fines/penalties/punishment/award/compounding fees/settlement amount paid in proceedings (by the
+entity or by directors/KMPs) with regulators/law enforcement agencies/judicial institutions, in the financial year
+2021-22:
+In FY 2021-22, there were no cases reported.
+Monetary
+Penalty/Fine
+Settlement
+Compounding Fee
+Non-Monetary
+Imprisonment
+Punishment
+3.
+NGRBC
+Principle
+Name of the Regulatory/Enforcement
+agencies/Judicial institution
+Amount
+(In)
+Brief of
+the Case
+Topics/principles covered under
+the training and its impacts
+Principle 1, 2, 3, 4, 5, 6, 7, 8, 9
+Principle 1, 2, 3, 4, 5, 6, 7, 8, 9
+Principle 1, 2, 3, 4, 5, 6, 7, 8, 9
+215
+5
+5
+It is planned to be done in the next financial year (Yes/No)
+Any other reason (please specify)
+P1 P2 P3 P4 P5 P6 P7 P8
+P9
+Section C: Principle wise Performance Disclosure
+ETHICS AND INTEGRITY
+Principle 1
+Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
+The entity is not at a stage where it is in a position to formulate and implement
+the policies on specified principles (Yes/No)
+Transparent and Accountable
+1. Percentage coverage by training and awareness programs on any of the principles during the financial year 2021-22:
+Segment
+Board of Directors
+Key Managerial Personnel
+Employees other than Board
+of Directors and KMPs
+Workers
+awareness programs held
+Total number of training and
+Essential Indicators
+Leadership Indicators
+Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing
+industry) or providing services (for service industry).
+With the Company's 100% of the production being involved in manufacturing of pharmaceutical products, there is no
+utilisation of re-used or recycled input material. Given the critical nature and volatility associated with production of
+pharmaceutical products from the aspect of consumer health, safety, compliance with relevant regulations and clinical
+trials, there is no scope of reusing or recycling any input material.
+98
+Y
+44.78
+4.56
+Y
+37.31
+4.64
+Y
+100
+100
+Y
+100
+100
+Y
+Deducted and
+deposited with the
+authority (Y/N/N.A.)
+No. of workers
+covered as a % of
+total workers
+100
+100
+4,980 100 4,980 100 4,980 100
+100
+0
+0
+4,980 96.98
+155 3.02
+Number %
+(C) (C/A)
+Number % Number
+(D) (D/A)
+% Number
+(E)
+(E/A)
+(F) (F/A)
+% Number
+(G) (G/A)
+% Number %
+(H) (H/A)
+Y
+Permanent workers
+4,980
+155
+5,135
+4,980 100
+155 100
+5,135 100
+4,980
+155 100
+5,135 100
+100
+0
+0 4,980
+155
+100
+Male
+Female
+Total
+Number %
+(B) (B/A)
+No. of employees
+covered as a % of
+total employees
+No. of workers
+covered as a % of
+total workers
+100
+100
+962
+100
+962
+962 100
+0
+0
+30 100
+30 3.02
+962 100
+30 100
+992 100
+962 100
+30 100
+992 100
+992
+Total
+Energy
+Female
+Male
+Other than Permanent workers
+155 100
+5,135 100
+155 100
+5,135 100
+100
+100
+962 100
+0
+0
+30
+100
+PF
+Gratuity
+ESI
+No. of employees
+covered as a % of
+total employees
+Benefits
+FY 2020-21
+FY 2021-22
+Details of retirement benefits, for FY 2021-22 and FY 2020-21
+2.
+Deducted and
+deposited with the
+authority (Y/N/N.A.)
+992 100
+992
+100
+992
+962 96.98
+30 100
+100
+30
+100
+100
+Vaccination
+support to
+employees and
+families
+Special
+COVID -19
+support
+Total
+(A)
+support to
+employees and
+families
+Number
+(D) (D/A)
+Permanent employees
+% Number
+% Number
+(E)
+(E/A)
+(F)
+% Number
+(F/A) (G)
+(G/A)
+% Number
+(H) (H/A)
+%
+Male
+Female
+Total
+12,338 12,338 100
+1,057 1,057 100
+13,395 13,395 100
+12,338 100
+1,057 100
+13,395 100
+0
+0 12,338 100
+1,057 100
+Vaccination
+Special
+COVID-19
+support
+Day Care
+facilities
+Paternity
+Benefits
+Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
+The Company reclaims expired medicine stock from the stockiest as per the Company's standard operating procedure
+guidelines. The reclaimed expired medicine stock is then disposed in a safe manner, as per the regulatory guidelines.
+Indicate Product Category:
+Reclaimed products and their packaging materials as % of total products sold in respective category
+Expired products
+1.94%
+Scaling up Specialty. Leading with Care.
+97
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+EMPLOYEE WELLBEING
+Principle 3
+12,338 100 12,338 100 12,338 100
+Businesses should respect and promote the well-being of all employees, including those in their value chains
+Essential Indicators
+% Of employees covered by
+Category
+Total
+(A)
+Number % Number
+(B) (B/A)
+%
+(C) (C/A)
+Health
+insurance
+Accident
+insurance
+Maternity
+benefits
+1.a. Details of measures for the well-being of employees:
+0
+0
+1,057 7.89 12,338 92.11
+2,381 100
+207 100
+2,588 100
+207
+8
+2,381
+92
+2,588
+2,381 100
+207 100
+100
+b. Details of measures for the well-being of workers:
+% Of workers covered by
+Category
+Health
+insurance
+Accident
+insurance
+Maternity
+benefits
+Paternity
+Benefits
+Day Care
+facilities
+2,588 100 2,588 100
+International
+Labour
+Organisation
+(ILO), NGRBC
+100
+0
+1,057 100 1,057 100
+13,395 100 13,395 100
+1,057 100
+13,395 100
+Other than Permanent employees
+Male
+Female
+Total
+2,381
+207
+2,588
+2,381 100
+207 100
+2,588 100
+2,381
+207
+100
+0 2,381 100
+2,381
+100
+207
+100
+207
+100
+0
+0
+NGRBC
+962
+30
+(EPR)
+innovation and technology
+facilitates the development of
+a robust product portfolio in
+addition to strengthening the
+product accessibility in line with
+the Company's vision.
+Risk: Addressing risks
+pertaining to product
+portfolio, product accessibility,
+pricing and margins is
+significantly important for the
+pharmaceutical sector. Lack
+of accessibility to medicines
+due to pricing and availability
+pose an adverse effect on the
+Company's vision as well the
+business growth strategy.
+Opportunity: Strong product
+portfolio built on the
+foundation of Company's
+robust R&D principles, leads to
+accessibility of medicines and
+healthcare to wider consumer
+base. Development of complex
+molecules further advances
+the Company's contribution
+towards product accessibility.
+In case of risk, approach to adapt or
+mitigate
+1. Strengthened perimeter security,
+IT and monitoring systems,
+anti-virus and patch management
+while conducting trainings on
+cyber security to reduce risks
+arising from cyber security and
+data breaches.
+1. Establishing a strong and diversified
+product portfolio by enhancing
+cross-functional synergies,
+organisational capabilities, project
+management and governance
+focused on product identification,
+development, planning and launch.
+2. Strengthening in-licensing and
+out-licensing of products.
+3. Focus on developing and
+commercialising specialty
+products and complex generics
+among others.
+4. Vendor development, strengthening
+supply chain, working capital and
+inventory management.
+5.
+Undertaking operational excellence
+programs focused on yield and
+throughput improvement.
+Implications of the risk or
+opportunity (indicate positive or
+negative implications)
+Positive: Strong alignment
+of secure data integrity
+principles with the help of
+innovative technology and
+digitalisation initiatives within
+the Company's business
+operations will ensure
+compliance of data security,
+privacy and prevent any loss
+of data.
+Negative: Lack of a strong
+data integrity and security
+mechanism may lead to
+increase in number of
+data breaches and loss of
+valuable data.
+Positive: Investment in
+innovation and technology
+will lead to development of
+stronger product portfolio
+in addition to fulfillment
+of patient needs through
+strengthened product
+accessibility. Further it
+will reflect the Company's
+commitment towards product
+innovation through its
+investment in innovation and
+technology.
+Positive: A comprehensive
+product portfolio in
+terms of accessibility and
+product pricing through
+the Company's product
+innovation and research
+center amplifies the brand
+value.
+Negative: Lack of product
+accessibility due to pricing
+issues may lead to an adverse
+impact on the Company's
+brand value and business
+growth in the long run.
+opportunity
+pricing
+product
+Responsible
+in innovative
+specialty
+products and
+17
+technologies
+Rationale for identifying risk/
+opportunity
+Risk: Risk linked to technology
+directly impact the security
+and integrity of the system
+across the business operation.
+The criticality involved with
+the technology and cyber
+security needs to be assessed
+periodically to prevent
+breaches of data privacy from
+the aspects of confidential
+information of the Company as
+well as its stakeholders.
+Opportunity: A strong
+Scaling up Specialty. Leading with Care.
+governance on the data
+integrity, technology,
+digitalization and innovation
+parameters of the Company
+enables the creation of a secure
+Opportunity Opportunity: Investment in
+Development Risk and
+of complex
+molecules
+18
+Product
+accessibility
+19
+and impenetrable network
+while supporting pace and
+scale of business transactions
+across geographies.
+16
+91
+Indicate
+whether
+risk or
+opportunity
+Negative: Identification of
+major issues from the aspects
+focusing on pharmacovigilance, 3. Established global quality standards of product safety and quality
+proprietary, confidentiality
+and other core governance
+standards.
+Risk: Strong dependency
+on the supply chain for the
+entire product life cycle
+poses a requirement of a
+strong contingency plan to
+deal with unprecedented
+situations which may lead to
+disruption in the supply chain.
+Further, the Company extends
+its responsible business
+principles across the value
+chain, expecting its suppliers
+to adhere with the required
+principles. Non-adherence of
+the principles from the supplier
+end may affect the Company's
+partnership with them, further
+impacting the business
+continuity plan.
+and procedures throughout the
+organisation
+4. Rolling out periodic training
+programs for employees on global
+GMP training
+5. Strengthening and harmonising
+quality related IT applications and
+systems
+6. Undertaking periodic quality review
+of third-party locations
+7. Strengthening quality of
+manufacturing records, test
+procedures at lab and continuous
+uptake of best practices
+8. Conducting brand protection
+activities and strengthen
+framework for trademark and
+IP protection activities with the
+support of a dedicated IP team
+focusing on patents
+1. Establish a robust assessment
+mechanism to assess the
+implication of unprecedented
+disruption on the supply chain
+and develop a comprehensive
+contingency plan to avoid major
+impact on the business
+2. Undertake a supplier assessment
+in alignment with the standard
+practices and requirements as per
+the guidance outlined by sector-
+specific responsible supply chain
+initiatives.
+may lead to penalties and
+warnings from relevant
+regulatory authorities. Further
+it may have adverse impact
+on the brand image and value.
+Positive: Responsible supply
+chain practices enables the
+Company to have a strong
+mechanism to deal with
+supply chain disruptions due
+to unprecedented situations,
+moreover the compliance
+with the Company's
+responsible business practices
+and principles, amplify
+the Company's social and
+environment performance
+across the supply chain.
+Negative: Non-compliance
+of the vital requirements
+from responsible business
+perspective such as
+human rights may affect
+the Company's business
+partnerships in a long
+run. Further, it may lead
+to adverse impact on the
+brand image from the
+perspective of association
+with a non-compliant supplier
+in the long run.
+Positive: Compliance of
+products on the aspects
+of quality and safety from
+all relevant regulatory
+requirements, highlights the
+Company's commitment as
+well as integrity towards
+patient safety.
+Implications of the risk or
+opportunity (indicate positive or
+negative implications)
+1. Employ robust and centralised
+pharmacovigilance processes
+encompassing detailed SOPs that
+ensure efficient surveillance and
+reporting of adverse events
+2. Make consistent investments
+in technological interventions,
+strengthening governance
+mechanisms, and employee
+capacity-building in the area of
+pharmacovigilance management
+In case of risk, approach to adapt or
+mitigate
+Sr.
+Material
+issues
+No.
+identified
+20
+Product
+Risk
+responsibility
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+21
+safety across
+lifecycle)
+Responsible
+supply chain
+management
+Risk
+Rationale for identifying risk/
+opportunity
+Risk: Due to high vulnerability
+of product quality and safety
+issues for the pharmaceutical
+sector, addressing risks relevant
+to product responsibility is
+critically important. The risk
+analysis and consecutive
+mitigation action plans are
+linked with standards and
+guidelines of all local and
+global regulatory agencies,
+(including
+quality and
+92
+Investments
+and
+The Company applies the
+precautionary principle (as
+described in Rio Declaration 1992)
+through the ERM framework to
+mitigate environmental risks.
+Attracting and retaining
+talent through multiple talent
+development programs
+encompassing global talent
+management, stretch programs and
+schemes along with compensation
+and other benefits to employees.
+2. Formal succession planning
+programme for all leadership
+positions.
+Implications of the risk or
+opportunity (indicate positive or
+negative implications)
+Positive: Leadership oversight
+on the ESG strategy, action
+plan and performance
+facilitate the amplification
+of the Company's positive
+impact on environment and
+community. It also enables
+the company to further
+embed robust monitoring
+mechanisms across ESG
+initiatives and business
+practices.
+Positive: The Company's
+focus on strengthening
+climate and ESG specific
+initiatives bolsters long-term
+value-creation and enables
+the company to effectively
+respond to rising stakeholder
+demands.
+Negative: Lack of robust
+initiatives and action plans to
+contribute to ESG awareness
+and climate change could
+adversely impact business
+operations and lead to
+workforce disruption.
+Positive: A strong workforce
+with high retention rate
+highlights the Company's
+efforts towards creating a
+conducive work environment
+in addition to creating a
+positive approach towards
+workforce development
+Negative: Workforce being
+an integral component of the
+Company's value creation
+strategy play a critical role
+in the business growth
+plan. Inability to meet the
+workforce expectations may
+result in adverse impacts on
+the workforce productivity
+and the company's growth
+plan in a long run.
+Scaling up Specialty. Leading with Care.
+89
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Sr.
+Material
+issues
+operations, GHG emission
+reduction measures, and physical
+climate risk assessment for climate-
+proofing assets.
+change, for instance decarbonising
+transitional risks linked to climate
+1.
+regulations,
+and carbon
+emissions
+9
+10
+11
+Attracting
+Opportunity Opportunity: Implementation
+of a governance structure
+primarily focusing on the ESG
+parameters of the Company,
+will augment the overall ESG
+performance, and reflect the
+Company's commitment to
+integrate responsible business
+practices within its growth
+model.
+No.
+Risk and Risk: Waste, water and energy
+Opportunity management have been
+Workforce
+welfare
+identified as key material issues
+under the Climate change and
+environmental risk. The Climate
+Change and environmental
+risks is addressed to
+emphasize on the Company's
+climate consciousness and
+its contribution towards
+mitigation action plans
+against climate change.
+Opportunity: Comprehensive
+resource management
+plans in alignment with the
+Company's environment
+conservation strategy will
+highlight the Company's
+commitment towards improving
+environment preservation and
+its contribution towards climate
+change mitigation action plans.
+Risk: Talent management
+parameters such as acquisition,
+retention and development are
+intrinsically linked to workforce
+welfare. Inability to meet with
+the workforce expectations
+may impact the Company's
+retention rate and affect
+the Company's the business
+continuity due to the criticality
+of workforce as a part of the
+business growth plan.
+Opportunity: Company's efforts
+towards workforce welfare and
+development directly coveys its
+resolute commitment towards
+the upliftment of the most
+integral asset.
+1. Ensuring compliance through
+strong governance and review
+mechanisms, strengthening
+capabilities of EHS and legal
+compliance teams, conducting
+risk assessments and periodic
+reviews, implementing compliance
+management software for tracking
+and monitoring adherence to all
+applicable regulatory requirements
+2. Undertaking proactive initiatives
+towards mitigating the physical and
+3.
+Risk and
+and retaining Opportunity
+talent
+digitalisation
+identified
+Indicate
+whether
+risk or
+opportunity
+Occupational Risk and
+Health and Opportunity
+a strong redressal mechanism
+may result in non-compliance
+issues from relevant
+regulatory perspective.
+90
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+Indicate
+Material
+Sr.
+issues
+No.
+identified
+14
+and security
+whether
+risk or
+opportunity
+Data integrity Risk and
+Opportunity
+15
+Technology
+employee dissatisfaction,
+impacting the workforce
+productivity that could impact
+the Company's long-term
+business growth plan. Lack of
+Positive: Comprehensive
+alignment of Human Rights
+principles in accordance
+with the guiding principles
+of national and international
+Human Rights standards
+amplifies the Company's
+performance in social
+aspect as well as reflect its
+commitment towards human
+rights integration within the
+Company's business model.
+Negative: Absence of a
+Human Rights governance
+structure could result in
+may adversely impact the
+Company's performance from
+the aspect of safety as well as
+workforce wellbeing.
+1. Integrating a strong governance
+structure for Human Rights from
+the aspect of Human Rights Policy,
+grievance redressal mechanism and
+due diligence across the business
+operations extending to supply
+chain partners and vendors.
+safety
+13
+13 Human
+Rights
+Rationale for identifying risk/
+opportunity
+Risk: Occupational health
+and safety is critical aspect of
+the Company's commitment
+towards workforce welfare
+which further highlights
+the performance in terms
+of provision of safe and
+secure working environment.
+Identification of a high number
+of health and safety incidents
+reflect the efficiency of the
+existing EHS management
+approach.
+Opportunity: Strong EHS
+management system integrated
+with a comprehensive hazard
+identification, mitigation
+plans, root cause analysis of
+the reported incidents and
+corresponding corrective
+action plan will highlight
+the Company's approach
+and resoluteness towards
+workforce health and safety.
+Risk and
+Risk: Absence of a
+Opportunity comprehensive Human Rights
+governance structure from
+the aspects of parameters
+such as working conditions,
+child/forced labour, fair
+remuneration, gender
+diversity, prevention of
+sexual harassment, freedom
+of association, collective
+bargaining will impact the
+Company's performance
+in social domain from the
+perspective of employee
+workforce as well as
+community.
+12
+Opportunity: Presence of
+Human Rights Policy and a
+strong redressal mechanism
+outlines the Company's
+commitment towards Human
+Rights protection.
+1. Implementing a robust EHS
+management system with periodic
+internal and external audits of the
+safety practices.
+2. Adoption of comprehensive
+corrective action plans post the
+identification and assessment of
+Implications of the risk or
+opportunity (indicate positive or
+negative implications)
+Positive: Robust
+Occupational, Health and
+Safety management approach
+enables the Company to
+prevent the occurrence of
+incidents.
+safety incidents to prevent any such Negative: Frequent safety
+incidents and 
+injuries
+future instances.
+In case of risk, approach to adapt or
+mitigate
+Corporate Overview
+Climate
+Change
+Financial Statements
+4. Name of the national
+and international codes/
+certifications/labels/
+standards (e.g. Forest
+Stewardship Council,
+Fairtrade, Rainforest
+Alliance, Trusted)
+standards (e.g. SA 8000,
+OHSAS, ISO, BIS) adopted
+by your entity and
+mapped to each principle.
+5. Specific commitments,
+goals and targets set by
+the entity with defined
+timelines, if any.
+6. Performance of the
+entity against the specific
+commitments, goals,
+and targets along-with
+reasons in case the same
+are not met.
+7. Statement by director
+responsible for the
+business responsibility
+report, highlighting ESG
+related challenges, targets,
+and achievements -
+8. Details of the highest
+authority responsible
+for implementation and
+oversight of the Business
+Responsibility policy (ies).
+9. Does the entity have
+a specified Committee
+of the Board/Director
+responsible for decision
+making on sustainability
+related issues? (Yes/No).
+If yes, provide details.
+P
+P
+P
+P
+Questions
+P
+Disclosure
+93
+Yes
+Yes
+Yes
+Yes
+3. Do the enlisted policies
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+extend to your value chain
+partners? (Yes/No)
+Scaling up Specialty. Leading with Care.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+P
+P
+P
+quality-
+Guiding
+System-ISO
+ISO
+Principles on
+14001:2015,
+9001:
+Business and
+NGRBC, Energy
+2015,
+Conduct
+Producer
+Human Rights
+management system-
+(NGRBC)
+Responsibility
+Statutory Reports
+Management
+Nations
+Safety- ISO
+45001: 2018,
+NGRBC NGRBC Product
+P
+1
+2
+3
+4
+5
+6
+7
+Yes
+8
+National
+Guidelines
+on
+Responsible
+Business
+Environment
+Management
+System- ISO
+14001: 2015,
+Extended
+Health and
+NGRBC United
+Environment
+9
+Yes
+NGRBC
+Yes
+well as contributes towards
+positive social performance.
+Positive: Accessibility to
+health and education facilities
+though the Company's CSR
+initiatives, contributes to the
+upliftment of the Community
+members.
+Principle 1
+Principle 2
+Section B: Management and Process Disclosures
+THE NATIONAL GUIDELINES FOR RESPONSIBLE BUSINESS CONDUCT (NGRBC) AS PRESCRIBED BY THE
+MINISTRY OF CORPORATE AFFAIRS ADVOCATES NINE PRINCIPLES REFERRED AS P1-P9 AS GIVEN BELOW:
+Businesses should conduct and govern themselves with integrity in a manner that is ethical, transparent and accountable
+Businesses should provide goods and services in a manner that is sustainable and safe
+Principle 3
+Principle 4
+Businesses should respect and promote the well-being of all employees, including those in their value chains
+Businesses should respect the interests of and be responsive towards all its stakeholders
+Principle 5
+Businesses should respect and promote human rights
+Principle 6
+Principle 7
+Principle 8
+Businesses should respect, protect, and make efforts to restore the environment
+Businesses when engaging in influencing public and regulatory policy, should do so in a manner that is responsible
+and transparent
+Businesses should promote inclusive growth and equitable development
+Principle 9
+Positive: Contributions made
+by the Company towards
+upliftment of the community
+through various initiatives
+and partnerships focusing on
+the health, education, rural
+infrastructure development,
+sanitation, environment
+conservation among others,
+elevates the Company's
+brand value among the local
+community members as
+Implications of the risk or
+opportunity (indicate positive or
+negative implications)
+In case of risk, approach to adapt or
+mitigate
+Sustainable Development Goals
+Business Responsibility and Sustainability Report
+Yes
+Indicate
+Material
+Sr.
+whether
+issues
+No.
+Businesses should engage with and provide value to their consumers in a responsible manner
+identified
+Community
+development
+- CSR
+risk or
+opportunity
+Opportunity
+23
+Health
+education
+and
+prevention
+Rationale for identifying risk/
+opportunity
+Opportunity: Streamlining
+CSR initiatives with the needs
+of community members by
+virtue of impact assessments
+and stakeholder engagement
+sessions, enables the Company
+to highlight its positive impact
+on the community.
+Opportunity Opportunity: Contributing
+towards CSR initiatives
+focusing on the health and
+education area facilitates the
+Company to align its initiatives
+with the United Nations
+22
+Disclosure
+ISO 50001:2018
+P
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+each principle and its
+core elements of the
+NGRBCs. (Yes/No)
+b. Has the policy been
+approved by the
+Yes, the Company has developed comprehensive policies covering these principles, some of the Policies have been approved by
+the Board as per relevant statutory requirements.
+Board? (Yes/No)
+c. Web Link of the
+Policies, if available
+2. Whether the entity has
+translated the policy into
+procedures. (Yes/No)
+Yes
+P
+Yes
+Yes
+Yes
+Policy and Management Processes
+P
+P
+1. a. Whether your entity's
+policy/policies cover
+P
+https://sunpharma.com/policies/
+P
+P
+Questions
+1
+P
+3
+P
+4
+5
+6
+7
+8
+9
+2
+Employees and workers who have been provided training on human rights issues and policy(ies) of the entity:
+No. employees'
+workers covered
+Total
+Category
+FY 2021-22
+Essential Indicators
+1.
+Principle 5
+HUMAN RIGHTS
+Financial Statements
+Business Responsibility and Sustainability Report
+Statutory Reports
+Corporate Overview
+104
+The community members are identified as vulnerable/marginalised stakeholder group for the Company. As part
+of the Corporate Social Responsibility (CSR) initiatives, the Company undertakes need assessment to identify and
+prioritise the focus areas for community development. The Company has undertaken various CSR initiatives on seven
+focus areas- healthcare, education, rural development, environment conservation, sanitation, drinking water project,
+disaster relief program. For further details refer the Annual Report and the Company's Annual CSR report.
+(A)
+Businesses should respect and promote human rights
+(B/A)
+2,588
+FY 2020-21
+2,600
+100
+2,588
+Provide details of instances of engagement with and actions taken to address the concerns of vulnerable/
+marginalised stakeholder groups.
+Other than permanent
+100
+13,460
+13,460
+(B)
+100
+13,395
+Permanent
+Employees
+(D)
+(D/C)
+%
+No. employees'
+workers covered
+Total
+(C)
+13,395
+Yes, the identification, prioritisation of material issues relevant to the environment, social,
+economic and governance topics is done in consultation with the stakeholders. The
+identified issues are then subsequently mapped with relevant risks. As part of the risk
+management plan, the Company subsequently strategises and develops mitigation action
+plans for the identified risk. The material issues form the guiding framework for the non-
+financial disclosures of the Company through its Sustainability Report. As per the relevant
+national and international guidelines and standards, the Company discloses its management
+approach, targets/goals and its non-financial performance in the reporting year for each of
+the identified material topic. Additionally, the identification of material issues enables the
+company to focus on its key improvement areas and subsequently develop future action
+plans such as policy development, initiatives implementation among others.
+•
+2b. If so, provide details of instances
+as to how the inputs received from
+stakeholders on these topics were
+incorporated into policies and
+activities of the entity.
+•
+No
+Town-halls
+•
+Senior
+Leadership
+engagement surveys
+Employee
+•
+E-mail
+•
+web-portal
+Ongoing
+• Employee focused
+No
+Employee
+feedback sessions
+Customer
+In person meetings
+Virtual modes such as
+e-mail, telephonically
+Ongoing
+Customers form a vital part of the Company's stakeholder
+engagement group to ensure quality services. The key areas of
+interest for Customer B2B are:
+• Product quality, access and pricing
+is used to support the identification
+and management of environmental
+and social topics (Yes / No).
+2a. Whether stakeholder consultation
+Provide the processes for consultation between stakeholders and the Board on economic, environmental and social
+topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
+At Sun Pharmaceutical Industries Limited, stakeholder engagement mechanism is a key driving force towards
+strengthening and diversifying the stakeholder relationship, which further facilitates the identification of key
+material issues impacting the Company's growth. The stakeholder engagement and materiality assessment exercise
+conducted in FY2020-21 led to the prioritisation of material issues, mapping of the risks relevant to each material
+topic and development of consequent risk mitigation steps. The primary outcome of the stakeholder engagement
+exercise resulted in identification and prioritisation of material issues relevant to environment, social, governance and
+economic aspects. The identified material issues were presented to the highest governing member and the Board for
+their feedback and guidance on strategising the sustainable growth model of the Company. As part of the Company's
+efforts to continually engage with internal and external stakeholder groups for identification of key material issues
+impacting them, the stakeholder engagement exercise undergoes periodic review.
+Leadership Indicators
+1.
+Overall Company performance
+•
+• R&D and innovation
+2.
+• Sustainable and resilient business operations
+sustainable value creation strategy. Senior leadership engagement
+facilitates the interlinkage of business and sustainable value
+creation.
+Senior leadership are the key drivers of the Company's
+Work-life balance
+• Fair remuneration
+• Employee recognition
+Training, professional growth and development
+Well-being initiatives
+•
+Employee wellbeing and satisfaction is an integral part of the
+Company's growth model. Employee engagement through various
+means of communication provides an insight into the key action
+areas for employee wellbeing and growth. The key areas of
+interest for employees are:
+• The key areas of interest for senior leadership are:
+2,600
+100
+Total Employees
+0
+13,460
+100
+13,395
+0
+0
+13,395
+Permanent
+Employees
+%
+(F/D)
+Number
+(F)
+(E/D)
+(E)
+(C/A)
+(C)
+(B/A)
+(B)
+0
+%
+13,460
+Male
+1,057
+100
+0
+•
+0
+1,057
+Female
+100
+12443
+0
+0
+12,443
+100
+12,338
+0
+0
+12,338
+100
+Number
+Total
+(D)
+%
+992
+992
+Other than permanent
+100
+4,694
+4,694
+100
+5,135
+5,135
+Permanent
+Workers
+100
+16,060
+16,060
+100
+15,983
+15,983
+Total Workers
+6,127
+5,135
+100
+Number
+%
+More than Minimum
+wages
+Equal to Minimum
+Wages
+More than Minimum
+wages
+Wages
+Total
+(A)
+Category
+100
+Equal to Minimum
+FY 2021-22
+Details of minimum wages paid to employees and workers:
+2.
+100
+4,694
+100
+907
+907
+4,694
+FY 2020-21
+Number
+Group.
+(Yes/No)
+•
+6.
+Details on assessment of value chain partners:
+5.
+The Company periodically provides skill-upgradation training programs to all its employees during their employment.
+The training programs cater to the specific requirements of the cadre and relevant function areas which further
+enable the employees to pursue employment post retirement or termination, based on the acquired skillset.
+Does the entity provide transition assistance programs to facilitate continued employability and the management of
+career endings resulting from retirement or termination of employment? (Yes/No)
+4.
+0
+0
+FY 2020-21
+0
+0
+FY 2021-22
+0
+0
+1
+0
+Employees
+Workers
+FY 2020-21
+FY 2021-22
+No. of employees/workers that are rehabilitated and placed in suitable employment
+or whose family members have been placed in suitable Employment
+Health and safety practices
+Total no. of affected
+employees/workers
+Working Conditions
+As per the Company's Global Code of Conduct, the value chain partners are expected to adhere to the principles of
+Health and safety practices, working conditions as per extant regulations. However, no independent assessment is
+carried out.
+Stakeholder
+Group
+List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder
+group.
+As a responsible Company focused on driving growth through the strong foundation of stakeholder relationships,
+Sun Pharmaceutical Industries Limited engages with its prioritised group of stakeholders, identifies the key material
+issues and manages their expectations. The stakeholder groups are identified as part of the stakeholder engagement
+mechanism, built on the principles of inclusivity, accountability, and responsibility. As part of the stakeholder
+engagement and materiality assessment exercise conducted in FY 2020-21, the Company identified key stakeholder
+groups based on those groups who are impacted as well those who have a major influence on the business
+decisions. The key internal and external stakeholder groups identified by the Company as part of the engagement
+mechanism are - Investors/shareholder, regulators, suppliers/vendors/third-party manufacturers, Non-Governmental
+Organisations (NGO), Community, Customer B2B, Employee, Senior leadership.
+Describe the processes for identifying key stakeholder groups of the entity.
+Essential Indicators
+Businesses should respect the interests of and be responsive to all its stakeholders
+Principle 4
+STAKEHOLDER INCLUSIVENESS
+2.
+1.
+Business Responsibility and Sustainability Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+102
+Not Applicable.
+Provide details of any corrective actions taken or underway to address significant risks concerns arising from
+assessments of health and safety practices and working conditions of value chain partners.
+% Of value chain partners that were assessed:
+(By value of business done with such partners)
+100%
+100%
+Provide the number of employees/workers having suffered high consequence work-related injury/ill-health/
+fatalities (as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable
+employment or whose family members have been placed in suitable employment:
+The Company requires its value chain partners to abide by the principles of the Company's Supplier Code of Conduct
+and implement responsible business conduct principles in its operating practices.
+Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by
+the value chain partners.
+0
+0
+at the end of year
+the year
+0
+0
+0
+0
+0
+at the end of year
+the year
+Remarks
+Remarks
+Pending resolution
+Filed during
+Pending resolution
+Filed during
+1,017
+FY 2020-21
+FY 2021-22
+0
+Health & Safety
+14. Assessments for the year:
+Health and
+Yes, the Company extends a compensatory package to all its employees including workers in event of death. During
+the COVID-19, additional benefits over and above the compensatory package were provided to family members of
+the deceased employees in the form of sponsorship of education for children until the age of 18.
+3.
+2.
+(B) Workers
+Does the entity extend any life insurance or any compensatory package in the event of death of: (Y/N)?
+(A) Employees
+Leadership Indicators
+In FY 2021-22, there was a fire incident in a solvent recovery tank at the Company's Ahmednagar manufacturing
+location. Post analysis of root cause of the incident, corrective and preventive actions were taken to avoid the
+occurrence of such incidents in the future. Static charge dissipation arrangement was provided outside the solvent
+storage tank in addition to the earthing arrangement of tanks in the tank farm area. To prevent unauthorised entry
+into the storage tank area, restriction list was displayed, and CCTV was installed for strengthening the surveillance. In
+addition to the above corrective actions, mechanical integrity of the storage areas was checked and inspected by third
+party experts.
+1.
+Investor/
+Shareholder
+15. Provide details of any corrective action taken or underway to address safety related incidents (if any) and on
+significant risks / concerns arising from assessments of health & safety practices and working conditions.
+101
+Scaling up Specialty. Leading with Care.
+100% (All the sites are assessed on their working conditions by the external and internal audits).
+61.11% (Out of 18 manufacturing locations and R&D centres under the entity, 11 are assessed on health and safety
+practices by third party auditor, as per requirements of the ISO 45001:2018 standards).
+100% of the locations are audited internally by the entity. The audits are conducted by internal experts to ensure the
+compliance of safety regulations and identification of major improvement areas.
+% of your plants and offices that were assessed. (by entity or statutory authorities or third parties)
+Working Conditions
+safety practices
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+E-mail
+Whether
+identified as (Email, SMS, Newspaper,
+Vulnerable & Pamphlets, Advertisement,
+Marginalised Community Meetings,
+• Agile management process
+• Employee volunteering
+As a responsible Company, engaging with NGOs facilitate the
+streamlining of the CSR activities undertaken in partnership. The
+key areas of interest for NGO are:
+Collaboration
+Timely payments
+Engagement through
+NGO partners
+.
+Ongoing
+• In-person meetings
+Yes
+Community
+• Virtual modes such as
+e-mail, telephonically
+Ongoing
+• In-person meetings
+No
+NGO
+•
+Community development programs initiated by the Company's
+CSR activities enables driving a positive impact on the community
+members. The key areas of interest for community are:
+Responsible supply chain practices are critically important
+for ensuring the business continuity in a sustainable manner.
+Engagement with suppliers, vendors enable the Company to
+identify the key material issues impacting the supply chain. The
+key areas of interest for the suppliers are:
+• Community development programs with a focus on health,
+education, sanitation and infrastructure development
+103
+B2B
+• In-person meetings
+No
+Customer
+Notice Board, Website),
+Other
+(Yes/No)
+Group.
+(Annually/Half
+Whether
+identified as
+Vulnerable &
+Stakeholder
+Group
+Ongoing
+Purpose and scope of engagement including key
+yearly/Quarterly topics and concerns raised during such engagement
+/others -
+please specify)
+engagement
+Marginalised Community Meetings,
+(Email, SMS, Newspaper,
+Pamphlets, Advertisement,
+Channels of communication Frequency of
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Scaling up Specialty. Leading with Care.
+De-risk supply chain
+• Rural market penetration
+• Community engagement
+•
+No
+Regulator
+yearly/Quarterly topics and concerns raised during such engagement
+/others -
+please specify)
+Quarterly/
+need-based
+Purpose and scope of engagement including key
+engagement
+(Annually/Half
+based press releases
+Investor presentations
+•
+• Issuing specific event-
+investor conferences
+• Attending
+earning calls
+reports and
+Annual/quarterly
+•
+Notice Board, Website),
+Other
+No
+• In-person meetings
+E-mail
+Need-based
+Supplier/
+vendor/
+third party
+manufacturer
+• Regulatory compliance
+The key areas of interests for the regulators are:
+the compliance perspective.
+Transparent communication with the regulators is critical from
+Overall Company performance
+• Cost competitiveness
+Product responsibility
+• Responsible supply chain management
+Channels of communication Frequency of
+• Regulatory compliance
+Corporate governance
+•
+The key areas of interest for the investors/ shareholders are:
+Investors/ Shareholders form an integral part of the stakeholder
+group, influencing the decisions of the Company.
+• Virtual modes such as
+e-mail, telephonically
+Ongoing
+• Vendor meets
+No
+ESG disclosures
+0
+0
+0
+1,017
+(i) Surface Water
+Water Withdrawn by the source (KL)
+Parameter
+3. Provide details of the following disclosures related to water:
+Does the entity have any sites/facilities identified as designated consumers (DCs) under the Performance Achieve
+and Trade (PAT) Scheme of the Government of India? (Yes/No). If yes, disclose whether targets set under the PAT
+scheme have been achieved. In case targets have not been achieved provide the remedial action taken if any.
+No, the Company is not identified as designated consumer under the Performance Achieve and Trade (PAT) Scheme of
+the Government of India.
+2.
+3,278,564 GJ
+26
+FY 2020-21
+1,458,072 GJ
+1,075,482 GJ
+745,010 GJ
+FY 2021-22
+1,464,919 GJ
+1,040,498 GJ
+771,969 GJ
+3,277,386 GJ
+21
+Energy intensity per rupee of turnover (Total energy consumption/turnover in Million rupees)
+Total energy consumption (A+B+C)
+Energy consumption through other sources - Steam (C)
+Total fuel consumption (B)
+Total electricity consumption (A)
+Parameter
+Details of total energy consumption (in Giga-Joule (GJ) or multiples) and energy intensity:
+Businesses should respect and make efforts to protect and restore the environment
+Essential Indicators
+(ii) Ground Water
+ENVIRONMENT
+Principle 6
+(iii) 3rd Party Water
+Total Volume of Water Consumed (KL)
+An independent assurance has been carried out by an external agency, DNV GL Business Assurance India Private Limited towards environment
+and social parameters as per GRI standards based on scope defined for Sustainability Report. Key information which are common in the defined
+scope of Sustainability Report and BRSR have been reviewed by the assurance provider.
+Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
+external agency.
+19
+14
+2,375,559
+2,209,014
+2,462,017
+2,299,489
+965,729
+906,185
+853,997
+809,849
+642,291
+583,455
+FY 2020-21
+FY 2021-22
+Water intensity per rupee of turnover (Water consumed/turnover in Million rupees)
+Total Volume of Water Withdrawn (i + ii + iii)
+Scaling up Specialty. Leading with Care.
+1.
+Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the
+assessments at Question 4 above.
+100
+100
+100
+% Of your plants and offices that were assessed
+(by entity or statutory authorities or third parties)
+Discrimination at workplace
+Sexual harassment
+Forced/involuntary labour
+Child labour
+Assessments for the year:
+8.
+Yes, Human Rights requirements form an integral part of the Company's business agreements. The Global Code of
+Conduct outlines details of the Company's commitment towards Human Rights, it is applicable to all the employees,
+business partners across the value chain. The Global Code of Conduct declaration is required to be signed off by all
+employees. Further, the human rights requirements form part of the contract for suppliers and contractors.
+Do human rights requirements form part of your business agreements and contracts? (Yes/No)
+For the cases pertaining to sexual harassment, the Company's policy on prevention, prohibition and redressal of
+sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace
+(Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder ensures strict confidentiality
+of the investigation procedure and protection of the identity of the complainant.
+Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
+As per the Global Whistleblower Policy, the Company ensures protection of the complainant. The investigation of the
+complaints is done strictly in a confidential manner ensuring the protection of the complainant against any retaliation.
+The Company provides necessary safeguards to all Whistle Blowers for making Protected Disclosures in good faith,
+in all the areas mentioned in the Global Code of Conduct such as business with integrity, responsible corporate
+citizenship, illegal and unfair labor practices, trade practices and other laws.
+7.
+0
+0
+100
+Not applicable.
+100
+All the locations under the entity are assessed on the above parameters, complying with the requirements of the Shop
+Establishments Act for offices and the Factor Inspector audits at plants and R&D centres.
+Yes, as per the requirements of the Rights of Persons with Disabilities, the Company manufacturing premises and
+offices have ramps, elevators and infrastructure for differently abled individuals.
+Is the premise/office of the entity accessible to differently abled visitors as per the requirements of the Rights of
+Persons with Disabilities Act 2016?
+The Company in the reporting period did not undertake any Human Rights due diligence. The Company's revised
+Human Rights Policy expects all the employees and members of the value chain to abide by its principles. As part
+of the policy statement, the Company outlines that it will undertake human rights due diligence to identify adverse
+human rights impact of the business on all relevant stakeholders and correspondingly address, prevent and mitigate
+through corrective actions.
+4.
+3.
+Details of the scope and coverage of any Human rights due diligence conducted.
+2.
+Details of a business process being modified/introduced as a result of addressing human rights grievances/complaints.
+Not applicable.
+1.
+Financial Statements
+Business Responsibility and Sustainability Report
+Leadership Indicators
+Statutory Reports
+Corporate Overview
+106
+Not applicable.
+Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the
+assessments at Question 9 above.
+9.
+Wages
+107
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+4.
+E-waste (B)
+831
+FY 2020-21
+FY 2021-22
+Plastic waste (A)
+Parameter
+108
+Total Waste generated (in metric tonnes)
+Provide details related to waste management by the entity:
+8.
+Energy reduction at vacuum system with the introduction of dry vacuum system in place of Steam ejector.
+5.
+Specific power consumption of chilling system improved by various initiatives like automatic tube cleaning,
+energy efficient chiller replacement
+4.
+Intelligent flow controller installed in compressed air system to reduce power consumption.
+3.
+Automatic solid fuel boiler installed to reduce carbon footprint.
+3
+2.
+2
+43
+34,035
+Working Conditions
+38,883
+Total (A+B+C+D+E+F+G)
+9,656
+14,896
+Other Non-hazardous waste generated (Glass scrap, metal scrap, wooden scrap, storage
+drums, corrugated box, paper waste, boiler ash) (G)
+23,923
+23,049
+Other Hazardous waste (spent solvent, spent oil, spent catalysts, distillation residues, chemical
+sludge, process residue, discarded/ off-specification products) (F)
+0
+0
+Radioactive waste (E)
+16
+59
+Battery waste (D)
+30
+Bio-medical waste (C)
+Installation of Electric Heat pumps to reduce steam and water consumption.
+1.
+Major energy conservation projects are listed below: -
+147
+MT
+MT
+Particulate Matter (PM)
+SOX
+158
+165
+MT
+NOx
+FY 2020-21
+FY 2021-22
+Please specify unit of measurement (UoM)
+Parameter
+Please provide details of air emissions (other than GHG emissions) by the entity:
+5.
+14 out of 18 manufacturing and R&D locations in the Sun Pharmaceutical Industries Limited boundary are Zero
+Liquid Discharge (ZLD). The Company implements water conservation through reduce, reuse, recharge and recycle
+approach within its manufacturing locations. As part of recycle initiative, the Company provides tertiary treatment to
+its effluent, the treated effluent water is then effectively recycled and reused as make-up water in cooling towers and
+in-house gardening. This enables the Company to implement ZLD at its manufacturing locations.
+Yes.
+Has the entity implemented a mechanism for Zero Liquid Discharge? (Yes/No) If yes, Provide details of its coverage
+and implementation.
+132
+209
+210
+FY 2021-22
+Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details.
+As part of its initiatives to reduce the GHG emissions, the Company has implemented more than 110 energy
+conservation ideas in various sites to reduce energy consumption and minimise the carbon footprint.
+7.
+An independent assurance has been carried out by an external agency, DNV GL Business Assurance India Private Limited towards environment
+and social parameters as per GRI standards based on scope defined for Sustainability Report. Key information which are common in the defined
+scope of Sustainability Report and BRSR have been reviewed by the assurance provider.
+Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
+external agency.
+2.69
+52,862
+284, 807
+2.16
+47,743
+287,102
+0
+Total Scope 2 emissions
+Total Scope 1 and Scope 2 emissions per rupee of turnover
+Metric tonnes of CO2 eq.
+Metric tonnes of CO2 eq.
+Unit
+Total Scope 1 emissions
+Parameter
+6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity:
+The Company monitors air emissions for the given parameters- NOx, SOx and Particulate Matter.
+FY 2020-21
+Metric tonnes of CO2 eq./* Million
+0
+0
+0
+0
+0
+155
+Female
+100
+4,567
+0
+0
+4,567
+100
+4,980
+0
+0
+4,980
+Male
+100
+4,694
+0
+0
+0
+155
+127
+962
+Male
+100
+907
+0
+0
+907
+100
+992
+0
+0
+992
+Other than permanent
+100
+127
+0
+0
+100
+4,694
+100
+5,135
+2,381
+0
+0
+2,381
+Male
+100
+2,600
+0
+0
+2,600
+100
+2,588
+0
+0
+2,588
+Other than permanent
+100
+100
+2,392
+0
+0
+0
+0
+5,135
+Permanent
+Workers
+100
+208
+0
+0
+0
+100
+207
+0
+0
+207
+Female
+100
+2,392
+208
+0
+0
+100
+Pending resolution
+Filed during
+FY 2020-21
+FY 2021-22
+6.
+Other human rights related issues
+Wages
+Forced/Involuntary Labour
+Child Labour
+Discrimination at workplace
+Sexual Harassment
+Number of Complaints on the following made by employees and workers:
+The Company 'Ask HR' platform, email and other informal channels of communication form part of the internal
+mechanism for grievance redressal of human rights issues. The Company's Human Rights Policy outlines the grievance
+redressal mechanism through the open channels of communication and the Ombudsman channel as per the Global
+Whistleblower Policy. The Ombudsman ensures the confidentiality of the complaints and grievances received through
+Email: ombudsmanSPIL@sunpharma.com.
+Describe the internal mechanisms in place to redress grievances related to human rights issues.
+Yes, the Head of Human Resource department of the Company is responsible for addressing human rights impact or
+issues. As part of the Human Rights Policy, the Company expects all its relevant stakeholders to respect and comply
+with the policy principles, and applicable laws, regulations in all territories of its operation.
+Do you have a focal point (Individual/Committee) responsible for addressing human rights impacts or issues caused
+or contributed to by the business? (Yes/No)
+5.
+Remarks
+4.
+the year
+Filed during
+the year
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+2
+Remarks
+Pending resolution
+at the end of year
+at the end of year
+3.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+105
+3.
+100
+27
+0
+0
+27
+100
+30
+0
+0
+30
+Female
+100
+880
+0
+0
+880
+Details of remuneration/salary/wages:
+Board of Directors (BoD)*
+Key Managerial Personnel (KMP)
+Employees other than BoD and KMP
+Scaling up Specialty. Leading with Care.
+*The median remuneration of male Board of Directors includes remuneration to whole-time Directors, sitting fees and commission for
+Independent Directors. The median remuneration of female Board of Directors includes sitting fee and commission for Independent Director.
+The Board of Directors at its meeting held on May 30, 2022, have approved Commission of 4,000,000 (Rupees Forty Lakhs) to be paid to
+each Independent Director of the Company, for the FY 2021-22, subject to the approval of the members at the ensuing 30th Annual General
+Meeting and the payment shall be made after obtaining approval of the members.
+5,55,924
+7,00,008
+48,00,000
+Median remuneration/salary/
+wages of respective category
+Female
+1,057
+155
+962
+7,52,874
+3,32,508
+12,338
+1
+Number
+Median remuneration/salary/
+wages of respective category
+70,00,000
+2,98,63,164
+7
+2
+Number
+Male
+Workers
+4,980
+In the FY 2021-22 and FY 2020-21, there were no complaints filed by the employees and workers on the Company's
+working conditions, health and safety parameters.
+408
+The Company embeds the guidelines and principles of ISO 45001:2018, OSHA standards, Factory act and other state
+level regulatory requirements within its Environment Health and Safety (EHS) management system. The EHS policy
+advocates the provision of safe working environment to all the employees, contractors, sub-contractors, visitors and
+the neighbouring communities. The Company undertakes periodic internal and external audits to assess the safety
+practices and procedures in alignment with the EHS management system and the ISO 45001:2018 guidelines. As
+part of the auditing procedure, the Company recognises the critical areas requiring immediate corrective action.
+The safety incidents and hazards are analysed to determine the root cause, subsequently corrective action plans
+are laid out to prevent the occurrence of similar incidents in the future. Further, as part of the EHS management
+system, the Company provides safety trainings through modules and safety drill practices to all its employees and
+workers. The safety training programs enable the development of strong foundation among the workforce, in terms
+of their ability to identify, mitigate and prevent risks pertaining to Occupational Health and Safety. The Company
+endeavors to prevent negative health impact on the employees through various health awareness sessions, provision
+of medical facilities and medical insurance benefits. Additionally, the Company provides voluntary health promotion
+services such as lifestyle counselling, stress management sessions, nutritional awareness campaigns among others for
+inculcating healthy lifestyle practices.
+15.37
+Female
+155
+96 61.94
+127
+96
+75.59
+Scaling up Specialty. Leading with Care.
+99
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+8. Details of training given to employees and workers:
+FY 2021-22
+FY 2020-21
+On Health Safety
+On Skill Upgradation
+702
+On Health Safety
+4,567
+4,980
+0.00
+Female
+1,057
+0
+0.00
+1,017
+0
+0.00
+Total Permanent Workers
+5,135
+798 15.54
+4,694
+798
+17.00
+Male
+702 14.10
+0
+On Skill Upgradation
+Total
+100
+12,338
+Female
+1,057
+1,057
+100
+1,057
+100
+100
+Total
+13,395
+13,395
+100
+13,395
+100
+12,443
+1,017
+13,460 13,460
+12,338
+Category
+12,338
+Employees
+Total
+(A)
+Number
+(B)
+%
+Number
+%
+(D)
+(B/A)
+(C)
+(C/A)
+Number
+(E)
+%
+(E/D)
+Number
+(F)
+%
+(F/D)
+Male
+12,443
+12,443
+0
+Permanent Workers
+Return to work rate
+Retention rate
+(%)
+(%)
+Male
+Female
+Total
+100
+100
+100
+100
+100
+100
+100
+100
+100
+Retention rate
+(%)
+100
+(%)
+Gender
+13. Number of Complaints on the following made by employees and workers:
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+Accessibility Of Workplaces
+3.
+4.
+Are the premises/offices of the entity accessible to differently abled employees and workers as per the requirements
+of the Rights of Persons with Disabilities Act 2016? (Yes/No)
+As per the requirements of the Rights of Persons with Disabilities, the Company manufacturing premises and offices
+have ramps, elevators and infrastructure for differently abled individuals.
+Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? (Yes/No)
+Yes, the Company's Global Code of Conduct outlines its commitment to non-discrimination, by providing equal
+opportunity to all its employees irrespective of race, color, religion, sex, national origin, ancestry, age, marital status,
+sexual orientation or disability.
+If so, provide a web link to the policy.
+Global Code of Conduct: https://sunpharma.com/policies/.
+5.
+Return to work and Retention rates of permanent employees and workers that took parental leave.
+Permanent Employees
+Return to work rate
+0.00
+100
+Is there a mechanism available to receive and redress grievances for the following categories of employees and
+worker? If yes, give details of the mechanism in brief.
+%
+(D/C)
+(A)
+(B)
+(C)
+(D)
+Total Permanent Employees
+13,395
+0
+0.00
+13,460
+0
+0.00
+Male
+12,338
+Total employees/
+workers in
+respective
+category
+100
+association(s) or Union
+%
+Permanent
+employees
+and workers
+Other than
+Permanent
+employees
+and workers
+As part of the Global Whistleblower Policy, the Company provides a grievance redressal mechanism and encourages its
+employees and workers to bring to attention any instances of unethical behavior, incidents, frauds or violation. Further,
+the Company has 'Ask HR' platform for its permanent employees to address any grievances and queries.
+Yes, the non-permanent employees and workers communicate their grievances through their respective supervisors. The
+grievances are further communicated to the Company for necessary action and resolution of the grievances. Additionally,
+they can also report on any instances of unethical behavior, incident or violations through the Company's Whistleblower
+mechanism.
+7. Membership of employees and worker in association(s) or unions recognised by the listed entity:
+Category
+FY 2021-22
+No. of employees/workers
+FY 2020-21
+No. of employees/workers
+in respective category,
+who are part of
+association(s) or Union
+Total employees
+/workers in
+respective
+category
+in respective category,
+who are part of
+(B/A)
+100
+6.
+100
+If yes, the coverage of
+such system?
+(b) What are the processes
+used to identify
+work-related hazards
+and assess risks on a
+routine and non-routine
+basis by the entity?
+(c) Whether you have
+processes for workers to
+report the work-related
+hazards and to remove
+themselves from such
+risks. (Y/N)
+(d) Do the employees/
+worker of the entity
+have access to non-
+occupational medical
+and healthcare services?
+(Yes/No)
+Yes, all manufacturing locations under the entity have an Occupational Health and Safety management
+system in place, in accordance with the guidelines provided by ISO 45001, OHSAS 18001 standards and
+the legal requirements such as Factories Act, Indian Boilers Act, Environment Protection Act, The Epidemic
+Disease Act among others.
+The Occupational Health and Safety management system covers all the units and employees within the
+manufacturing operation. Hence, the coverage is 100%.
+The Company undertakes periodic internal and external audits to ensure the compliance of Occupational
+Health and Safety management system within the manufacturing operation. The EHS trainings, audits
+and inspections are carried out as per the guidelines of ISO 45001 standard. The Company's Process
+Safety Management system facilitates the implementation of best safety practices. Further, it enables the
+identification of work-related hazards through design checklists, Hazard and Operability Analysis (HAZOP),
+Hazard Identification and Risk Assessment (HIRA) and other consequence modelling studies.
+Yes, The Company has well-established Standard Operating Procedures (SOP) for employees and workers
+to identify and report on work-related hazards and the subsequent steps to mitigate them. In addition, the
+Company trains all its employees and workers with occupational health and safety modules. The training
+modules cover aspects of the methodology to identify work-related hazards, analyse the risks associated
+with it and take subsequent steps to mitigate them.
+During the safety and emergency evacuation drills, employees are trained in dealing with emergency
+equipment such as fire hydrant, firefighting system, leak and spill control procedures, safety alarms among
+others. In addition, the proficiency of employees is periodically tested in dealing with the emergency
+situations. The practical trainings and online safety modules equip the employees with right procedure of
+reporting work-related hazards and the steps to remove themselves from such situations.
+Yes, the Company provides non-occupational medical and healthcare services to its employees and workers.
+Further, the Company ensures the provision of medical insurance to all its employees and workers.
+With the endeavor to promote physical and mental wellbeing for all the employees and workers, the
+Company designs comprehensive health programs which promote healthy lifestyle practices. Some of the
+examples of health programs and services offered to the employees are:
+• Family welfare camp
+•
+Nutrition awareness camp
+management system has
+been implemented by
+the entity? (Yes/No).
+• Eye, dental and cardiac checkup camp
+(a) Whether an occupational
+health and safety
+100
+100
+4,567
+4,567
+100
+Female
+Total
+155
+5,135
+155
+5,135
+100
+127
+127
+100
+100
+4,694
+4,694
+10. Health and Safety Management System:
+4,980
+• Stress management session
+Lifestyle counselling session
+Temporary employees (includes contractors, apprentices)
+Permanent Employees and workers
+13
+3
+1
+0
+Temporary employees (includes contractors, apprentices)
+Permanent Employees and workers
+0
+**
+0
+**
+Temporary employees (includes contractors, apprentices)
+High consequence work-related injury
+or ill-health (excluding fatalities)
+*The Company refers the OSHA standard for calculating rates for LTIFR, as per the standard 2,00,000 hrs is used for calculation of the rate.
+**High Consequence work related injury is being monitored FY2021-22 onwards.
+12,443
+12. Describe the measures taken by the entity to ensure a safe and healthy workplace.
+2
+•
+12
+0.140
+100
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+11. Details of safety related incidents:
+Workers in the Company are part of the full-time employees. Monitoring of the injury and incidents related to EHS
+is done for employees and workers collectively. The following table provides information on the safety incidents for
+permanent employees and workers and temporary employees and workers.
+Safety Incident/Number
+Lost Time Injury Frequency Rate (LTIFR)*
+Total recordable work-related injuries
+Number of fatalities
+Category
+Permanent Employees and workers
+Temporary employees (includes contractors, apprentices)
+Permanent Employees and workers
+FY 2021-22
+0.081
+0.016
+0.040
+4,980
+FY 2020-21
+Workers
+Total
+155
+5,135
+155
+100
+155
+100
+127
+127
+100
+127
+100
+5,135
+100
+5,135
+100
+100
+4,694
+4,567
+4,567
+100
+1,017
+Male
+1,017
+100
+100
+13,460
+100
+Workers
+Male
+Female
+4,980
+4,980
+4,980
+100
+4,567
+100
+4,694
+100
+100
+12,443
+100
+Female
+1,057
+1,057
+100
+1,017
+1,017
+13,460
+Total
+13,395
+13,395
+100
+13,460
+100
+12,443
+100
+100
+12,338
+4,694
+100
+9.
+Details of performance and career development reviews of employees and worker:
+12,338
+FY 2020-21
+Benefits
+Total (A)
+FY 2021-22
+% (B/A)
+Total (C)
+Number (D)
+% (D/C)
+Employee
+Male
+Number (B)
+With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide
+details of significant direct & indirect impact of the entity on biodiversity in such areas along with prevention and
+remediation activities.
+Heat pump
+Initiative undertaken
+If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
+efficiency, or reduce impact due to emissions/effluent discharge/waste generated, please provide details of the same
+as well as outcome of such initiatives:
+111
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Scaling up Specialty. Leading with Care.
+The manufacturing facility, Maduranthakam is located 3.72 km (West) from the Vedanthangal Bird Sanctuary.
+The facility has been functional before the declaration of Vedanthangal Bird Sanctuary in 1998. The facility has
+no significant direct or indirect impact on the environment, further it complies with all the relevant statutory
+requirements and clearances such as Environment Clearance, Consent to Operate, Consent to Establish.
+Maduranthakam is a Zero Liquid Discharge (ZLD) site, equipped with effluent treatment facility to further
+direct the treated wastewater for in-house uses such as gardening.
+5.
+Intelligent Flow
+Control System
+- With treatment (please specify level of treatment)
+air System
+SBT
+(Soil Biotechnology)
+For sewage
+treatment
+6.
+7.
+8.
+Details of the initiative
+(Web-link, if any, may be provided along-with summary)
+Outcome of the initiative
+1. Reduction in fossil
+fuel consumption
+4.
+Heat pump is energy conservation device which is used to transfer heat from source to
+sink with small energy addition. It is used simultaneously generating hot water and chilled
+water. The utilisation of condensation and evaporation heat enables in reduction of fuel
+consumption in addition to saving the water used in cooling towers. Further, due to higher
+Coefficient of Performance (COP) of the heat pumps, steam consumption is minimised.
+Intelligent Flow Controllers (IFC) are used in compressed air system for controlling air flow 1. Reduction
+and minimising energy waste. IFC reduces artificial demand by controlling air flow and
+pressure being delivered to plant. Pressure study was conducted to evaluate supply and
+demand requirement of plant and IFC was installed to minimise energy losses.
+The initiative is implemented with the aim of reducing the energy consumption and
+overall treatment cost of domestic waste in comparison with conventional treatment.
+Soil Bio-technology is a terrestrial system for wastewater treatment which is based
+on the principle of trickling filter. In this system, combination of physical processes like
+sedimentation, infiltration and biochemical processes are carried out to remove the
+suspended solids, organic and inorganic contents of the wastewater. The technology works
+on scientific principles such as Adsorption, Filtration, Biodegradation and Bio Indicator.
+Filter media which houses filter material, culture & catalyst helps in biodegradation of the
+adsorbed organic molecules which is essential for adsorptive site rejuvenation. Range of
+microflora ensures the microbial diversity required for degradation of various contaminants.
+Hence, the technology facilitates the treatment of sewage in effective manner and meet
+the desire parameters of treated water, further to which it can be recycled and reused.
+for compressed
+An independent assurance has been carried out by an external agency, DNV GL Business Assurance India Private Limited towards environment
+and social parameters as per GRI standards based on scope defined for Sustainability Report. Key information which are common in the defined
+scope of Sustainability Report and BRSR have been reviewed by the assurance provider.
+0
+Tertiary treatment (In-house
+ETP treatment, post which
+sent to the Municipality
+sewage drain)- 12,761 KL
+12,761
+(iii) Into Seawater
+in electricity
+consumption
+- No treatment
+- With treatment (please specify level of treatment)
+(iv) Sent to third parties
+- No treatment
+- With treatment (please specify level of treatment)
+Total water discharged (KL)
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+Municipality drain and Common Effluent Treatment Plant
+(CETP)
+0
+Tertiary treatment (In-house
+ETP treatment, post which
+sent to the Municipality
+sewage drain)- 4,424 KL
+4,424
+0
+Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
+external agency.
+1. Low Maintenance
+2. High Aesthetics
+Low Depreciation
+4. Low Operating Cost
+5
+Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
+Yes, the Company has a business continuity and on-site emergency plan for all its locations. This business continuity
+plan enables the Company to adapt in situations arising from any natural calamity or an unprecedented event
+which may disrupt the business operations. The Company continuously enhances its existing plan by incorporating
+interferences and observations from disruptions faced in the unprecedented situations such as the pandemic. Further,
+the Company's risk management plan enables the minimisation of disaster-linked losses, by assessing the potential for
+major disruption with its consequent risks to the business, and by providing the appropriate mitigation action plans.
+National
+4
+Indian Drug Manufacturing Association (IDMA)
+National
+Indian Pharmaceutical Alliance (IPA)
+National
+67
+State
+Gujarat Employers Organisation (GEO)
+State
+8
+National
+Federation of Gujarat Industries (FGI)
+India CEO Forum on Climate Change
+1.c Provide details of corrective action taken or underway on any issues related to anticompetitive conduct by the
+entity, based on adverse orders from regulatory authorities.
+For the reporting year, there were no cases issued against the Company for issues pertaining to anticompetitive conduct.
+Leadership Indicators
+1.
+Details of public policy positions advocated by the entity:
+Public Policy advocated
+Method resorted for such
+advocacy
+Regulatory Reforms for Pharma
+sector in India
+FICCI publication
+- No treatment
+Whether
+information
+available in
+public domain?
+(Yes/No)
+Yes
+The Associated Chambers of Commerce of India (ASSOCHAM)
+3.
+3
+The Federation of Indian Chambers of Commerce and Industry (FICCI)
+Disclose any significant adverse impact to the environment arising from the value chain of the entity. What
+mitigation or adaptation measures have been taken by the entity in this regard?
+Not applicable
+Percentage of value chain partners (by value of business done with such partners) that were assessed for
+environmental impacts.
+In the reporting period, the Company did not evaluate any of its value chain partners on the basis of
+environmental impact.
+The Company's Supplier Code of Conduct is developed based on the best practices, standards and guidelines for
+evaluation of suppliers in the pharmaceutical supply chain. The evaluation checklist encompasses various parameters
+of environment, social and governance perspective to ascertain the compliance of suppliers with the Company's
+Supplier Code of Conduct. Assessment of value chain partners on the basis of the Company's Supplier Code of
+Conduct will be done in due course of time.
+112
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+RESPONSIBLE PUBLIC ADVOCACY
+Principle 7
+Businesses, when engaging in influencing public and regulatory policy,
+should do so in a manner that is responsible and transparent
+Essential Indicators
+1.a Number of affiliations with trade and industry chambers/ associations.
+The Company is a member of 8 trade and industry chambers/associations.
+1.b List the top 10 trade and industry chambers/associations (determined based on the total members of such body) the
+entity is a member of/ affiliated to.
+Reach of trade and industry chambers/ associations
+(State/National)
+National
+Sr.
+Name of the trade and industry chambers/associations
+No.
+1
+Confederation of Indian Industry (CII)
+2
+National
+(ii) Into Groundwater
+Provide the following details related to water discharged:
+- No treatment
+Total fuel consumption (E) (Diesel, Petrol, High Speed Diesel, Compressed Natural Gas, Liquified
+Petroleum Gas, Coal, Furnace Oil)
+683,375 GJ
+1,297,856 GJ
+752,437 GJ
+Energy consumption through other sources (F)
+Total energy consumed from non-renewable sources (D+E+F)
+O GJ
+1,991,689 GJ
+O GJ
+2,050,293 GJ
+Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
+external agency.
+An independent assurance has been carried out by an external agency, DNV GL Business Assurance India Private Limited towards environment
+and social parameters as per GRI standards based on scope defined for Sustainability Report. Key information which are common in the defined
+scope of Sustainability Report and BRSR have been reviewed by the assurance provider.
+2.
+Parameter
+Water discharge by destination and level of treatment (KL)
+(i) To Surface Water
+- No treatment
+- With treatment (please specify level of treatment)
+(ii) To Groundwater
+FY 2021-22
+0
+FY 2020-21
+0
+-
+No treatment
+- With treatment (please specify level of treatment)
+(iii) To Seawater
+1,308,314 GJ
+0
+Total electricity consumption (D) (Grid electricity)
+1,228,271 GJ
+Frequency of Review
+No environmental impact assessments were undertaken in FY 2021-22.
+Scaling up Specialty. Leading with Care.
+109
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+12. Is the entity compliant with the applicable environmental law/regulations/guidelines in India, such as the Water
+(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act
+and rules thereunder (Y/N). If not, provide details of all such non-compliances:
+1.
+All the manufacturing operations and R&D centres under the entity are in compliance with the applicable
+environmental laws/regulations and guidelines as per the national and state level mandates.
+Leadership Indicators
+Provide break-up of the total energy consumed (in Giga-Joules (GJ) or multiples) from renewable and non-renewable
+sources:
+Parameter
+FY 2021-22
+FY 2020-21
+From Renewable Sources
+Total electricity consumption (A) [Wind, Solar and Power Purchase Agreements (PPAs)]
+Total fuel consumption (B) (Biomass)
+156,605 GJ
+160,215 GJ
+357,123 GJ
+323,045 GJ
+Energy consumption through other sources (C) (Steam)
+771,969 GJ
+745,010 GJ
+Total energy consumed from renewable sources (A+B+C)
+1,285,697 GJ
+From Non-Renewable Sources
+- With treatment (please specify level of treatment)
+0
+0
+Manufacturing, R&D center
+(iii) Water withdrawal, consumption and discharge:
+Parameter
+Water withdrawal by source (in kiloliters)
+(i) Surface water
+FY 2021 - 22
+FY 2020-21
+339,774
+421,359
+(ii) Groundwater
+(iii) Third party water
+86,541
+83,748
+312,049
+376,207
+Total volume of water withdrawal (kL) (i +ii+ iii)
+Total volume of water consumption (KL)
+738,364
+881,314
+733,940
+868,552
+Water intensity per rupee of turnover (Water consumed/turnover in Million *)
+Water discharge by destination and level of treatment (in kiloliters)
+4.73
+6.91
+(i) Into Surface water
+-
+0
+(ii) Nature of operations
+Water withdrawal, consumption, and discharge in areas of water stress (in kiloliters):
+For each facility/plant located in areas of water stress, provide the following information:
+- No treatment
+- With treatment (please specify level of treatment)
+(iv) Sent to third parties
+- No treatment
+- With treatment (please specify level of treatment)
+Total Water discharged (KL)
+Municipality drain and Common
+Effluent Treatment Plant (CETP)
+Primary treatment (post primary
+treatment, sent to the CETP) -
+36,528 KL
+Tertiary treatment (In-house ETP
+treatment, post which sent to
+the Municipality sewage drain) -
+53,947 KL
+0
+0
+90,475
+Municipality drain and Common
+Effluent Treatment Plant (CETP)
+Primary treatment (post primary
+treatment, sent to the CETP -
+30,099 KL
+Tertiary treatment (In-house ETP
+treatment, post which sent to
+the Municipality sewage drain) -
+56,359 KL
+0
+0
+86,458
+Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
+external agency.
+An independent assurance has been carried out by an external agency, DNV GL Business Assurance India Private Limited towards environment
+and social parameters as per GRI standards based on scope defined for Sustainability Report. Key information which are common in the defined
+scope of Sustainability Report and BRSR have been reviewed by the assurance provider.
+110
+3.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+(i) Name of the area - Mohali, Dewas, Gurugram and Madurakantam
+by Board
+damaged label and damaged
+please specify)
+complaints
+packaging defects such
+as missing components,
+11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the
+current financial year:
+outer packaging
+Remark
+The complaints include
+packaging defects such
+as missing components,
+damaged label and
+damaged outer packaging
+4.
+Details of instances of product recalls on account of safety issues:
+Number
+Voluntary Recall
+Forced Recall
+12
+0
+Reason for Recall
+The reasons for recall of products were primarily found to be leakage and out of specification.
+Not applicable
+Scaling up Specialty. Leading with Care.
+115
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+5.
+6.
+1.
+2.
+3.
+defects, Transportation
+Does the entity have a framework/policy on cyber security and risks related to data privacy? (Yes/No) If available,
+provide a web-link of the policy.
+0
+The complaints include
+end of year
+0
+0
+0
+0
+0
+0
+0
+0
+FY 2020 - 21
+Pending
+resolution at
+services
+Restrictive Trade Practices
+0
+0
+0
+0
+Unfair Trade Practices
+0
+0
+0
+0
+Others
+Packaging
+1,311
+0
+1,566
+year
+Yes
+Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of
+essential services; cyber security and data privacy of customers; re occurrence of instances of product recalls;
+penalty/action taken by regulatory authorities on safety of products/services.
+295-320
+NOTICE
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+INDEPENDENT AUDITOR'S REPORT
+To the Members of Sun Pharmaceutical Industries Limited
+REPORT ON THE AUDIT OF THE STANDALONE IND
+AS FINANCIAL STATEMENTS
+OPINION
+We have audited the accompanying standalone Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited (the "Company"), which comprise the Balance
+sheet as at March 31 2022, the Statement of Profit and
+Loss, including the statement of Other Comprehensive
+Income, the Cash Flow Statement and the Statement of
+Changes in Equity for the year then ended, and notes
+to the standalone Ind AS financial statements, including
+a summary of significant accounting policies and other
+explanatory information.
+In our opinion and to the best of our information and
+according to the explanations given to us, the aforesaid
+standalone Ind AS financial statements give the information
+required by the Companies Act, 2013, as amended (the
+"Act") in the manner so required and give a true and fair
+view in conformity with the accounting principles generally
+accepted in India, of the state of affairs of the Company as
+at March 31, 2022, its loss including other comprehensive
+income, its cash flows and the changes in equity for the year
+ended on that date.
+BASIS FOR OPINION
+We conducted our audit of the standalone Ind AS financial
+statements in accordance with the Standards on Auditing
+(SAs), as specified under section 143(10) of the Act.
+Our responsibilities under those Standards are further
+described in the 'Auditor's Responsibilities for the Audit
+of the Standalone Ind AS Financial Statements' section
+of our report. We are independent of the Company in
+accordance with the 'Code of Ethics' issued by the Institute
+of Chartered Accountants of India together with the
+ethical requirements that are relevant to our audit of the
+financial statements under the provisions of the Act and the
+Rules thereunder, and we have fulfilled our other ethical
+responsibilities in accordance with these requirements and
+the Code of Ethics. We believe that the audit evidence
+we have obtained is sufficient and appropriate to provide
+a basis for our audit opinion on the standalone Ind AS
+financial statements.
+KEY AUDIT MATTERS
+Key audit matters are those matters that, in our professional
+judgment, were of most significance in our audit of the
+standalone Ind AS financial statements for the financial year
+ended March 31, 2022. These matters were addressed in
+the context of our audit of the standalone Ind AS financial
+statements as a whole and in forming our opinion thereon
+and we do not provide a separate opinion on these matters.
+For each key audit matter below, our description of how our
+audit addressed the matter is provided in that context.
+We have determined the matters described below to be the
+key audit matters to be communicated in our report. We
+have fulfilled the responsibilities described in the 'Auditor's
+responsibilities for the audit of the standalone Ind AS
+financial statements' section of our report, including in
+relation to these matters. Accordingly, our audit included
+the performance of procedures designed to respond to
+our assessment of the risks of material misstatement of
+the standalone Ind AS financial statements. The results of
+our audit procedures, including the procedures performed
+to address the matters below, provide the basis for our
+audit opinion on the accompanying standalone Ind AS
+financial statements.
+Key audit matter
+How our audit addressed the key audit matter
+Our audit procedures amongst others included the following:
+•
+Evaluated the design and tested the operating effectiveness of
+controls in respect of the identification and evaluation of litigations,
+the recording / re-assessment of the related liabilities, provisions
+and disclosures.
+Litigations (as described in Note 38 of the standalone Ind AS financial statements)
+The Company is involved in various legal proceedings
+including product liability, contracts, employment claims,
+Department of Justice (DOJ) investigations, anti-trust and
+other regulatory matters relating to conduct of its business.
+The Company assesses the need to make provision or
+to disclose a contingent liability on a case-to-case basis
+considering the underlying facts of each litigation.
+The eventual outcome of the litigations is uncertain
+and estimation at balance sheet date involves extensive
+judgement of management including input from legal counsel
+due to complexity of each litigation. Adverse outcomes
+could significantly impact the Company's reported results
+and balance sheet position.
+Considering the judgement involved in determining the need
+to make a provision or disclose as contingent liability, the
+matter is considered a Key Audit Matter.
+• Obtained a list of litigations from the Company's in-house legal
+counsel; identified material litigations from the aforementioned list
+and performed inquiries with the said counsel; obtained and read the
+underlying documents to assess the assumptions used by management
+in arriving at the conclusions.
+•
+•
+Circulated, obtained and read legal confirmations from Company's
+external legal counsels in respect of material litigations and considered
+that in our assessment.
+198 Consolidated
+Risk Management Policy: https://sunpharma.com/policies/.
+118 Standalone
+117-294
+For FY 2021-22, there were no complaints received for issues pertaining to delivery of essential services, advertising,
+action taken by regulatory authorities on safety of products/services.
+For product quality complaints received, the Company carried out the corrective action plans as per the identified
+root cause analysis for each complaint.
+Leadership Indicators
+Channels/platforms where information on products and services of the entity can be accessed (provide web link if
+available).
+The Company's website provides detailed information on the products sold region-wise. With the market reach in 6
+continents, the product list and contact information is outlined on the website for each region. The links to product
+list for India and US market is:
+India Products: https://sunpharma.com/india-products/
+US Products: https://sunpharma.com/usa/products/
+Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
+The Company adheres to relevant regulatory requirements by disclosing information to its stakeholders on the safe
+and responsible usage of products. The information label attached to each product informs the consumers about
+pharmacokinetics, instructions for safe use, sourcing of ingredients, composition, mechanism of action, clinical
+pharmacology, product interactions and side effects, and guidance on appropriate storage conditions, among others.
+Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
+As per the guidelines of National Pharmaceutical Pricing Authority, the Company discloses discontinuation of any
+scheduled formulation by issuing a public notice for relevant stakeholders in addition to informing the Government at
+least six months prior to the intended date of discontinuation.
+4.a Does the entity display product information on the product over and above what is mandated as per local laws?
+(Yes/No/Not Applicable)
+No
+4.b If yes, provide details in brief.
+Not applicable.
+4.c Did your entity carry out any survey with regard to consumer satisfaction relating to the major products/services
+of the entity, significant locations of operation of the entity or the entity as a whole? (Yes/No)
+No
+5.
+Provide the following information relating to data breaches:
+a. Number of instances of data breaches along-with impact
+b. Percentage of data breaches involving personally identifiable information of customers
+116
+0
+0
+.
+.
+FINANCIAL STATEMENTS
+(Annually/Half yearly/ Web link if available
+Quarterly/Others -
+Received
+during the
+0
+11%
+Leadership Indicators
+1.
+2.
+Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
+(Reference: Question 1 of Essential Indicators above):
+In FY2021-22, there were no Social Impact Assessments conducted.
+Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as
+identified by government bodies:
+For this reporting year, the Company did not undertake any CSR projects in designated aspirational districts.
+3.a. Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
+marginalised/vulnerable groups? (Yes/No)
+No, the Company does not have any preferential procurement policy focusing on suppliers from marginalised/
+vulnerable groups.
+3.b From which marginalised/vulnerable groups do you procure?
+Not applicable.
+3.c What percentage of total procurement (by value) does it constitute?
+4.
+5.
+Not applicable.
+Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the
+current financial year), based on traditional knowledge:
+The Company does not derive any benefits from intellectual properties owned or acquired based on
+traditional knowledge.
+Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes
+wherein usage of traditional knowledge is involved
+Not applicable.
+6.
+Details of beneficiaries of CSR Projects:
+CSR Projects
+Anganbari Development Project
+Solar Street Light
+8%
+Mobile Healthcare Unit
+FY 2020-21
+Sourced directly from within the district and neighbouring districts
+https://ficci.in/
+spdocument/23240/FICCI-
+Report_Regulatory-Reforms-for-
+Pharma-Sector.pdf
+Regulatory reforms to improve
+drug development process in India
+Trade Margin Rationalisation
+Indian Pharmaceutical Alliance No
+Indian Pharmaceutical Alliance No
+1.
+2.
+COMMUNITY UPLIFTMENT
+Principle 8
+Businesses should promote inclusive growth and equitable development
+Essential Indicators
+Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the
+current financial year.
+In the reporting year, the Company did not undertake any Social Impact Assessment.
+Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by
+your entity:
+In the reporting year, the Company did not undertake any ongoing Rehabilitation and Resettlement (R&R) project.
+Scaling up Specialty. Leading with Care.
+113
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+3.
+Describe the mechanisms to receive and redress grievances of the community.
+The Company engages with its community members through the channel of NGO partners and in-person meetings.
+These channels of communication facilitate the receipt and redressal of grievances of the community. Further, the
+Company reaches out to villages located in the peripheral area of its operating locations through mobile health care
+units. Each of the mobile health care unit carries a register, which is accessible to all the community members to
+address the grievances and queries through written complaints. The grievances received through the register are
+addressed by the concerned authority members.
+4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
+Directly sourced from MSMEs/small producers
+FY 2021-22
+Remark
+School Infrastructure Development Project
+Solar rooftop system at School
+Turnover of products and/services as a percentage of turnover from all products/service that carry information
+about:
+As a percentage to total turnover
+Environmental product and social parameters relevant to the Product
+Safe and responsible usage
+Recycling and/or safe disposal
+100%
+100% of the Company's products carry information about its responsible and safe usage. Due to the criticality
+associated with the safe and responsible consumption of medicines, the Company displays relevant information on the
+product labels as per the requirements of national and international drug regulatory bodies.
+3.
+Number of consumer complaints in respect of the following:
+Received
+during the
+FY 2021 - 22
+Pending
+resolution at
+year
+end of year
+Data privacy
+0
+0
+Advertising
+0
+0
+Cyber-security
+0
+0
+Delivery of essential
+0
+The Company also has an established a global pharmacovigilance policy, which is supported by a Product Safety
+Committee. The pharmacovigilance policy showcases the Company's commitment and efforts towards patient safety.
+Setting-up of Digital Classroom Project
+The Company has a comprehensive Product Quality Complaint Management system to facilitate timely redressal
+of the consumer complaints received in terms of product quality. The process is initiated once a product quality
+compliant is received and logged with the Company's system. Post which, the complainant is acknowledged, and
+a preliminary assessment is undertaken. A sample follow-up is initiated along with the preliminary assessment.
+The follow up runs in parallel with initial risk assessment and the investigation procedure. Post the completion of
+investigation a corrective action plan is initiated. Simultaneously, a complaint summary report is submitted. A final risk
+assessment is carried out and a response to complainant is sent resulting in the final closure of the complaint.
+Businesses should engage with and provide value to their customers and consumers in a responsible manner
+Essential Indicators
+Water conservation project
+No. of persons benefited
+from CSR Projects
+2,182
+% Of beneficiaries from vulnerable
+and marginalised groups
+99.5
+5,796
+99.5
+1,77,937
+100
+17,203
+100
+1,094
+100
+1,016
+100
+700
+100
+In addition to the list of projects mentioned in the above table, other community development projects were undertaken
+by the Company for FY 2021-22. The CSR projects pertain to support towards medical healthcare centre, infrastructure
+development for pharma research laboratory, rural infrastructure development project, provision of relief materials during
+COVID-19 among others. For further details, refer the Company's CSR Annual Report and Sustainability Report.
+114
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+1.
+2.
+CONSUMER WELLBEING
+Principle 9
+Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
+Whether the conditions of environmental approval/clearance are being complied with? (Y/N)
+If no, the reasons thereof and corrective action taken, if any.
+Yes
+118
+Maduranthakam
+Total
+FY 2020-21
+13,447
+11,705
+0
+0
+0
+0
+(iii) Other recovery operations
+13,447
+16,736
+11,301
+0
+0
+868
+651
+17,604
+11,952
+11,705
+3
+Recycled
+E-waste
+Manufacturing
+Verified the disclosures related to provisions and contingent liabilities in
+the standalone Ind AS financial statements to assess consistency with
+underlying documents.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes)
+Parameter
+FY 2021-22
+Hazardous waste
+(i)
+(i)
+(ii) Re-used
+(iii) Other recovery operations
+Total
+Non-hazardous waste
+(i) Recycled
+(ii) Re-used
+(iii) Other recovery operations
+Total
+Recycled
+1
+(ii) Re-used
+0
+2,590
+0
+9,380
+10,018
+0
+0
+0
+0
+2,088
+0
+0
+9.
+Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by
+your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices
+adopted to manage such wastes.
+The Company integrates a waste management plan with a comprehensive approach towards waste minimisation,
+segregation and safe disposal. As part of the resource optimisation and waste minimisation process, the Company has
+implemented various initiatives to minimise the rejections in manufacturing. The Company adheres to the mandates
+of Extended Producer Responsibility (EPR), by way of collection of end-use plastic and enhance its plastic waste
+management. Further, as part of hazardous waste disposal mechanism, the Company has implemented initiatives of
+diverting larger quantity of hazardous waste towards co-processing and recycling over other disposal mechanisms that
+is incineration and landfilling. Further, as part of its approach towards minimisation of waste generation, the Company
+has implemented digitalisation to replace the waste-generating procedures such as paper-based medication guides
+with e-guides.
+10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife
+sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where
+environmental approvals/clearances are required, please specify details:
+The Company has one of its manufacturing locations located in an ecologically sensitive area.
+0
+Location of operations/offices Type of operations
+0
+6,835
+0
+FY 2020-21
+0
+6,587
+3
+1
+For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
+Parameter
+FY 2021-22
+Hazardous waste
+(i) Incineration
+(iii) Co-processing
+(ii) Landfilling
+Total
+Non-hazardous waste
+(i) Incineration
+(ii) Landfilling
+(iii) Other disposal operations
+Total
+705
+593
+(iv) Other disposal operations
+0
+Income taxes, interest,
+and penalty
+Finance Act, 1994
+Nature of dues
+124
+Excise Duty, Interest and
+Penalty
+The Central Excise Act,
+1944
+Excise Duty, Interest and
+Penalty
+Income taxes, Interest,
+and penalty
+Income taxes and Interest
+Income Tax Act, 1961
+The Central Excise Act,
+1944
+Corporate Overview
+Income Tax Act, 1961
+Name of the Statute
+(b) The dues of goods and services tax, provident fund, employees' state insurance, income tax, sales tax, service
+tax, duty of custom, duty of excise, value added tax, cess, and other statutory dues that have not been deposited
+on account of any dispute, are as follows:
+(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the
+Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to
+the manufacture of applicable pharmaceutical products and are of the opinion that prima facie, the specified accounts
+and records have been made and maintained. We have not, however, made a detailed examination of the same.
+(vii) (a) Undisputed statutory dues including goods and services tax, provident fund, employees' state insurance,
+income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory
+dues have generally been regularly deposited with the appropriate authorities, where applicable, though there
+has been a slight delay in a few cases. According to the information and explanations given to us and based
+on audit procedures performed by us, no undisputed amounts payable in respect of these statutory dues were
+outstanding, at the year end, for a period of more than six months from the date they became payable
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Service Tax
+Income Tax Act, 1961
+Forum where the dispute is
+pending
+Various years from
+Tribunal (ITAT)
+(v) The Company has neither accepted any deposits from the public nor accepted any amounts which are deemed to be
+deposits within the meaning of sections 73 to 76 of the Companies Act and the rules made thereunder, to the extent
+applicable. Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to the Company and
+hence not reported upon.
+7,011.7
+CESTAT
+Service Tax
+Finance Act, 1994
+29.2
+11.9
+Various years from
+2003-04 to 2017-18
+Various years from
+2004-05 to 2017-18
+1,008.4
+Income Tax Appellate
+4.7
+103.8
+Customs, Excise and
+Service Tax Appellate
+Tribunal (CESTAT), Delhi
+Commissioner (Appeals)
+Commissioner (Appeals)
+Tax (Appeals)
+High Court
+Commissioner of Income Various years from
+123.8
+Various years from
+2006-07 to 2011-12
+(* Million)*
+Year to which it pertains
+Amount
+2009-10 to 2014-15
+2007-08
+Various years from
+2003-04 to 2016-17
+(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the
+provisions of section 186 of the Act in respect of loans, making investments and providing guarantees and securities
+as applicable. During the year, the Company has not granted any loans to parties covered under section 185 of
+the Act.
+(ii) (a) Inventory has been physically verified by management during the year except for inventories lying with third
+parties which have been confirmed by them. In our opinion, the frequency of verification by management is
+reasonable and the coverage and procedure for such verification is appropriate. No discrepancies of 10% or
+more in aggregate for each class of inventory were noticed in respect such inventories.
+(f)
+155.5
+35,724.8
+Amount in
+* Million
+- Employees
+- Subsidiary
+Balance outstanding as at balance sheet date in respect of above cases
+- Employees
+- Subsidiary
+Aggregate amount provided during the year to
+Particulars
+(iii) (a) During the year the Company has provided loan to subsidiaries and employees, the details of which are
+as follows:
+(b) The Company has not been sanctioned working capital limits in excess of five crore in aggregate from banks or
+financial institutions during the year on the basis of security of current assets. Accordingly, the requirement to
+report on clause 3(ii)(b) of the Order is not applicable to the Company and hence not reported upon.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+123
+Scaling up Specialty. Leading with Care.
+2013-14 to 2015-16
+(e) There are no proceedings initiated or pending against the Company for holding any benami property under the
+Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder. Accordingly, the requirement
+to report on clause 3(i)(e) of the Order is not applicable to the Company and hence not reported upon.
+(d) The Company does not follow the revaluation model for subsequent measurement of its Property, Plant and
+Equipment (including Right of use assets) or intangible assets. Accordingly, the requirement to report on clause
+3(i)(d) of the Order is not applicable to the Company and hence not reported upon.
+* In respect of building where the Company is entitled to the right of occupancy and use and disclosed as property, plant and
+equipment in the standalone Ind AS financial statements, we report that the instrument entitling the right of occupancy and use of
+building, are in the name of the Company as at the balance sheet date.
+35,999.1
+97.6
+During the year the Company has not provided advances in the nature of loans, stood guarantee or provided
+security to any entity and hence not commented upon by us.
+(b) During the year the investments made and the terms and conditions of the grant of all loans to companies or any
+other parties are not prejudicial to the Company's interest. The Company has not provided guarantees, given
+security or granted advances in nature of loans during the year and hence not commented upon by us.
+20.69%
+Percentage of the aggregate to the total loans
+granted during the year
+Aggregate amount of overdues of existing
+loans renewed (Amount in Millions)
+7,424.0
+Sun Pharmaceutical Industries Inc.
+Name of Party
+(e) During the year, the Company had renewed loans to a subsidiary aggregating ₹7,424.0 Million which had fallen
+due during the year.
+(d) There are no amounts of loans granted which are overdue for more than ninety days as at March 31, 2022.
+Accordingly, we have not commented on the steps taken by the Company for recovery of the principal
+and interest.
+7,424.0
+20.4
+The loan was further renewed.
+Was paid on 02-05-2022
+The Company has not granted any loans or advances in the nature of loans, either repayable on demand or
+without specifying any terms or period of repayment. Accordingly, the requirement to report on clause 3(iii)(f)
+of the Order is not applicable to the Company and hence not reported upon.
+NA
+70 days
+Sun Pharma Netherlands BV
+Sun Pharmaceutical Industries Inc.
+(Wholly owned Subsidiary)
+Extent of delay
+Due date
+Amount (in Million)
+Remarks, if any
+Name of the Entity
+(c) The Company has granted loans to subsidiaries where the schedule of repayment of principal and payment of
+interest has been stipulated and the repayment or receipts have been regular except in the following cases:
+17-01-2022
+21-02-2022
+The Goods and Service
+Tax Act
+(c) Term loans were applied for the purpose for
+which the loans were obtained.
+Commissioner (Appeals)
+(xvii) The Company has not incurred cash losses in the
+current year and in the immediately preceding financial
+year. Accordingly, the requirement to report on clause
+3(xvii) of the Order is not applicable to the Company
+and hence not reported upon.
+(d) Based on information and explanation provided
+by the management of the Company, there is no
+Core Investment Company as a part of the Group,
+hence, the requirement to report on clause 3(xvi)
+of the Order is not applicable to the Company and
+hence not reported upon. We have not, however,
+separately evaluated whether the information
+provided by the management is accurate
+and complete.
+(c) The Company is not a Core Investment Company
+as defined in the regulations made by Reserve
+Bank of India. Accordingly, the requirement
+to report on clause 3(xvi)(c) of the Order is
+not applicable to the Company and hence not
+reported upon.
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+126
+(b) The Company has not conducted any Non-
+Banking Financial or Housing Finance activities
+without obtaining a valid Certificate of
+Registration (COR) from the Reserve Bank of India
+as per the Reserve Bank of India Act, 1934.
+(xvi) (a) The provisions of section 45-IA of the Reserve
+Bank of India Act, 1934 (2 of 1934) are not
+applicable to the Company. Accordingly, the
+requirement to report on clause (xvi)(a) of the
+Order is not applicable to the Company and hence
+not reported upon.
+(xv) The Company has not entered into any non-cash
+transactions with its directors or persons connected
+with its directors and hence the requirement to report
+on clause 3(xv) of the Order is not applicable to the
+Company and hence not reported upon.
+(b) The internal audit reports of the Company issued
+till the date of the audit report, for the period
+under audit have been considered by us.
+its business.
+(xiv) (a) The Company has an internal audit system
+commensurate with the size and nature of
+(xiii) Transactions with the related parties are in compliance
+with sections 177 and 188 of Companies Act, 2013
+where applicable and the details have been disclosed
+in the notes to the financial statements, as required by
+the applicable accounting standards.
+(xii) The Company is not a Nidhi Company as per the
+provisions of the Companies Act, 2013. Therefore, the
+requirement to report on clause 3(xii)(a) to (c) of the
+Order is not applicable to the Company and hence not
+reported upon.
+(c) We have read the whistle blower complaints
+received by the Company during the year. Whilst,
+these complaints are substantially immaterial,
+the Company has a process of evaluation and
+redressal of all such complaints as required by
+applicable regulations. Post evaluation by the
+Company, we have considered these complaints
+in determining the nature, timing and extent of
+audit procedures.
+(b) During the year, no report under sub-section 12
+of section 143 of the Companies Act, 2013 has
+been filed by cost auditor/secretarial auditor or by
+us in Form ADT-4, as prescribed under Rule 13 of
+Companies (Audit and Auditors) Rules, 2014, with
+the Central Government.
+No fraud by the Company or no material fraud on
+the Company has been noticed or reported during
+the year under audit.
+(xviii) There has been no resignation of the statutory auditors
+during the year. Accordingly, the requirement to report
+on clause 3(xviii) of the Order is not applicable to the
+Company and hence not reported upon.
+(xix) According to the information and explanations given
+to us and on the basis of the financial ratios disclosed
+in note 54(14) to the standalone Ind AS financial
+statements, ageing and expected dates of realization
+of financial assets and payment of financial liabilities,
+other information accompanying the financial
+statements, our knowledge of the Board of Directors
+and management plans and based on our examination
+of the evidence supporting the assumptions, nothing
+has come to our attention, which causes us to believe
+that any material uncertainty exists as on the date
+of the audit report that Company is not capable of
+meeting its liabilities existing at the date of balance
+sheet as and when they fall due within a period of one
+year from the balance sheet date. We, however, state
+that this is not an assurance as to the future viability
+of the Company. We further state that our reporting
+is based on the facts up to the date of the audit report
+and we neither give any guarantee nor any assurance
+that all liabilities falling due within a period of one year
+from the balance sheet date, will get discharged by the
+Company as and when they fall due.
+(xx) (a) In respect of other than ongoing projects, there
+are no unspent amounts that are required to be
+transferred to a Fund specified in Schedule VII
+to the Act, in compliance with second proviso
+to sub-section 5 of section 135 of the Act. This
+matter has been disclosed in note 54(10) to the
+standalone Ind AS financial statements.
+128
+A company's internal financial control over financial
+reporting with reference to these standalone Ind AS
+financial statements is a process designed to provide
+reasonable assurance regarding the reliability of financial
+reporting and the preparation of financial statements for
+external purposes in accordance with generally accepted
+accounting principles. A company's internal financial control
+over financial reporting with reference to these standalone
+Ind AS financial statements includes those policies and
+procedures that (1) pertain to the maintenance of records
+that, in reasonable detail, accurately and fairly reflect the
+transactions and dispositions of the assets of the company;
+(2) provide reasonable assurance that transactions are
+recorded as necessary to permit preparation of financial
+statements in accordance with generally accepted
+accounting principles, and that receipts and expenditures
+of the company are being made only in accordance with
+authorisations of management and directors of the
+company; and (3) provide reasonable assurance regarding
+prevention or timely detection of unauthorised acquisition,
+use, or disposition of the company's assets that could have a
+material effect on the financial statements.
+MEANING OF INTERNAL FINANCIAL CONTROLS
+OVER FINANCIAL REPORTING WITH REFERENCE TO
+THESE FINANCIAL STATEMENTS
+We believe that the audit evidence we have obtained is
+sufficient and appropriate to provide a basis for our audit
+opinion on the internal financial controls over financial
+reporting with reference to these standalone Ind AS
+financial statements.
+Our audit involves performing procedures to obtain audit
+evidence about the adequacy of the internal financial
+controls over financial reporting with reference to these
+standalone Ind AS financial statements and their operating
+effectiveness. Our audit of internal financial controls over
+financial reporting included obtaining an understanding
+of internal financial controls over financial reporting
+with reference to these standalone Ind AS financial
+statements, assessing the risk that a material weakness
+exists, and testing and evaluating the design and operating
+effectiveness of internal control based on the assessed
+risk. The procedures selected depend on the auditor's
+judgement, including the assessment of the risks of material
+misstatement of the financial statements, whether due to
+fraud or error.
+Our responsibility is to express an opinion on the
+Company's internal financial controls over financial
+reporting with reference to these standalone Ind AS
+financial statements based on our audit. We conducted
+our audit in accordance with the Guidance Note on Audit
+of Internal Financial Controls Over Financial Reporting
+(the "Guidance Note") and the Standards on Auditing as
+specified under section 143(10) of the Companies Act,
+2013, to the extent applicable to an audit of internal
+financial controls and, both issued by the Institute of
+Chartered Accountants of India. Those Standards and
+the Guidance Note require that we comply with ethical
+requirements and plan and perform the audit to obtain
+reasonable assurance about whether adequate internal
+financial controls over financial reporting with reference
+to these standalone Ind AS financial statements was
+established and maintained and if such controls operated
+effectively in all material respects.
+AUDITOR'S RESPONSIBILITY
+The Company's Management is responsible for establishing
+and maintaining internal financial controls based on the
+internal control over financial reporting criteria established
+by the Company considering the essential components of
+internal control stated in the Guidance Note on Audit of
+Internal Financial Controls Over Financial Reporting issued
+by the Institute of Chartered Accountants of India. These
+responsibilities include the design, implementation and
+maintenance of adequate internal financial controls that
+were operating effectively for ensuring the orderly and
+efficient conduct of its business, including adherence to
+the Company's policies, the safeguarding of its assets, the
+prevention and detection of frauds and errors, the accuracy
+and completeness of the accounting records, and the timely
+preparation of reliable financial information, as required
+under the Act.
+MANAGEMENT'S RESPONSIBILITY FOR INTERNAL
+FINANCIAL CONTROLS
+(xi) (a)
+REPORT ON THE INTERNAL FINANCIAL CONTROLS
+UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
+143 OF THE COMPANIES ACT, 2013 ("THE ACT")
+We have audited the internal financial controls over
+financial reporting of Sun Pharmaceutical Industries Limited
+("the Company") as of March 31, 2022 in conjunction with
+our audit of the standalone Ind AS financial statements of
+the Company for the year ended on that date.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+127
+Scaling up Specialty. Leading with Care.
+Membership Number: 105754
+UDIN: 22105754AJVRMM8346
+Place of Signature: Mumbai
+Date: May 30, 2022
+per Paul Alvares
+Partner
+ICAI Firm Registration Number: 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+(b) There are no unspent amounts in respect
+of ongoing projects, that are required to be
+transferred to a special account in compliance of
+provision of sub-section 6 of section 135 of the
+Act. This matter has been disclosed in note 54(10)
+to the standalone Ind AS financial statements.
+ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND
+AS FINANCIAL STATEMENTS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED
+(b) The Company has not made any preferential
+allotment or private placement of shares/fully
+or partially or optionally convertible debentures
+during the year under audit and hence, the
+requirement to report on clause 3(x)(b) of the
+Order is not applicable to the Company and hence
+not reported upon.
+(x) (a) The Company has not raised any money during
+the year by way of initial public offer/ further
+public offer (including debt instruments) hence,
+the requirement to report on clause 3(x)(a) of the
+Order is not applicable to the Company and hence
+not reported upon.
+The Company has not raised loans during the year
+on the pledge of securities held in its subsidiaries,
+joint ventures or associate companies. Hence,
+the requirement to report on clause (ix)(f) of the
+Order is not applicable to the Company and hence
+not reported upon.
+Various years from
+1999-00 to 2017-18
+/ Senior Joint
+Commissioner
+Appellate Authority
+Assistant/Additional
+*Amount includes interest till the date of demand and are net of advances paid/adjusted under protest.
+Customs Duty, Penalty
+and Interest
+Sales Tax, Interest and
+Penalty
+Sales Tax, Interest and
+Penalty
+Sales Tax, Interest and
+Penalty
+Custom Act, 1962
+25.6
+Sales Tax Act / VAT
+(Various States)
+Sales Tax Act / VAT
+(Various States)
+Sales Tax Act / VAT
+(Various States)
+Custom Act, 1962
+Customs Duty, Penalty
+and Interest
+Sales Tax, Interest and
+Penalty
+4.0
+2017-18
+Assistant Commissioner
+GST
+The Goods and Service
+Tax Act
+2.6
+2017-18 and 2018-19
+Sales Tax Act / VAT
+(Various States)
+GST
+Various years from
+Tribunal
+(f)
+(e) On an overall examination of the financial
+statements of the Company, the Company has
+not taken any funds from any entity or person
+on account of or to meet the obligations of
+its subsidiaries, associates or joint ventures.
+Accordingly, the requirement to report on
+clause 3(viii) of the Order is not applicable to the
+Company and hence not reported upon.
+(d) On an overall examination of the standalone Ind
+AS financial statements of the Company, no funds
+raised on short-term basis have been used for
+long-term purposes by the Company.
+of National Company Law
+Tribunal (NCLT).
+(b) The Company has not been declared wilful
+defaulter by any bank or financial institution or
+government or any government authority.
+(ix) (a) The Company has not defaulted in repayment of
+loans or other borrowings or in the payment of
+interest thereon to any lender.
+(viii) The Company has not surrendered or disclosed any
+transaction, previously not recorded in the books of
+account, in the tax assessments under the Income
+Tax Act, 1961 as income during the year. Accordingly,
+the requirement to report on clause 3(viii) of the
+Order is not applicable to the Company and hence not
+reported upon.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+125
+13.5
+Scaling up Specialty. Leading with Care.
+2.8
+1999-00 to 2010-11
+Various years from
+2008-09 to 2014-15
+Various years from
+2010-11 to 2012-13
+CESTAT
+Commissioner (Appeals)
+53.5
+Various years from
+High Court
+3.0
+1998-99 to 2017-18
+Various years from
+1998-99 to 2013-14
+116.0
+Company in terms of approval
+No
+name of erstwhile company
+• Obtain an understanding of internal control relevant to
+the audit in order to design audit procedures that are
+appropriate in the circumstances. Under section 143(3)
+(i) of the Act, we are also responsible for expressing our
+opinion on whether the Company has adequate internal
+financial controls with reference to financial statements
+in place and the operating effectiveness of such controls.
+Evaluate the appropriateness of accounting policies used
+and the reasonableness of accounting estimates and
+related disclosures made by management.
+• Identify and assess the risks of material misstatement of
+the standalone Ind AS financial statements, whether due
+to fraud or error, design and perform audit procedures
+responsive to those risks, and obtain audit evidence
+that is sufficient and appropriate to provide a basis
+for our opinion. The risk of not detecting a material
+misstatement resulting from fraud is higher than for
+one resulting from error, as fraud may involve collusion,
+forgery, intentional omissions, misrepresentations, or the
+override of internal control.
+As part of an audit in accordance with SAs, we exercise
+professional judgment and maintain professional skepticism
+throughout the audit. We also:
+Those Board of Directors are also responsible for
+overseeing the Company's financial reporting process.
+In preparing the standalone Ind AS financial statements,
+management is responsible for assessing the Company's
+ability to continue as a going concern, disclosing, as
+applicable, matters related to going concern and using the
+going concern basis of accounting unless management
+either intends to liquidate the Company or to cease
+operations, or has no realistic alternative but to do so.
+RESPONSIBILITIES OF MANAGEMENT FOR THE
+STANDALONE IND AS FINANCIAL STATEMENTS
+The Company's Board of Directors is responsible for
+the matters stated in section 134(5) of the Act with
+respect to the preparation of these standalone Ind AS
+financial statements that give a true and fair view of the
+financial position, financial performance including other
+comprehensive income, cash flows and changes in equity of
+the Company in accordance with the accounting principles
+generally accepted in India, including the Indian Accounting
+Standards (Ind AS) specified under section 133 of the Act
+read with the Companies (Indian Accounting Standards)
+Rules, 2015, as amended. This responsibility also includes
+maintenance of adequate accounting records in accordance
+with the provisions of the Act for safeguarding of the
+assets of the Company and for preventing and detecting
+frauds and other irregularities; selection and application
+of appropriate accounting policies; making judgments and
+estimates that are reasonable and prudent; and the design,
+implementation and maintenance of adequate internal
+financial controls, that were operating effectively for
+ensuring the accuracy and completeness of the accounting
+records, relevant to the preparation and presentation of the
+standalone Ind AS financial statements that give a true and
+fair view and are free from material misstatement, whether
+due to fraud or error.
+In connection with our audit of the standalone Ind AS
+financial statements, our responsibility is to read the other
+information and in doing so, consider whether such other
+information is materially inconsistent with the financial
+statements or our knowledge obtained in the audit or
+otherwise appears to be materially misstated. If, based on
+the work we have performed, we conclude that there is
+a material misstatement of this other information, we are
+required to report that fact. We have nothing to report in
+this regard.
+Our opinion on the standalone Ind AS financial statements
+does not cover the other information and we do not express
+any form of assurance conclusion thereon.
+The Company's Board of Directors is responsible for the
+other information. The other information comprises the
+information included in the Annual report, but does not
+include the standalone Ind AS financial statements and our
+auditor's report thereon.
+OTHER INFORMATION
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+119
+Scaling up Specialty. Leading with Care.
+Evaluated the disclosures in the standalone Ind AS financial statements.
+Obtained the Company's computation of recoverable amount and tested
+the mathematical accuracy and reasonableness of key assumptions.
+Obtained and evaluated management's sensitivity analysis to ascertain
+the impact of changes in key assumptions.
+Evaluated the design and tested the operating effectiveness of
+management's controls in assessing the carrying value of intangible assets.
+•
+•
+Other intangible assets (as described in Note 4 of the standalone
+The Company has significant intangible assets, comprising
+acquired trademarks and product intangibles. The Company
+conducts an annual impairment testing of intangible assets.
+Significant judgements are used to estimate the recoverable
+amount of these intangible assets and hence is considered as
+a Key Audit Matter.
+•
+• Conclude on the appropriateness of management's use
+of the going concern basis of accounting and, based
+on the audit evidence obtained, whether a material
+uncertainty exists related to events or conditions that
+may cast significant doubt on the Company's ability
+to continue as a going concern. If we conclude that a
+material uncertainty exists, we are required to draw
+attention in our auditor's report to the related disclosures
+in the financial statements or, if such disclosures are
+inadequate, to modify our opinion. Our conclusions
+are based on the audit evidence obtained up to the
+date of our auditor's report. However, future events or
+conditions may cause the Company to cease to continue
+as a going concern.
+• Evaluate the overall presentation, structure and
+content of the standalone Ind AS financial statements,
+including the disclosures, and whether the standalone
+Ind AS financial statements represent the underlying
+transactions and events in a manner that achieves
+fair presentation.
+120
+(f)
+(e) On the basis of the written representations
+received from the directors as on March 31, 2022
+taken on record by the Board of Directors, none
+of the directors is disqualified as on March 31,
+2022 from being appointed as a director in terms
+of Section 164 (2) of the Act;
+(d) In our opinion, the aforesaid standalone Ind AS
+financial statements comply with the Accounting
+Standards specified under Section 133 of the
+Act, read with Companies (Indian Accounting
+Standards) Rules, 2015, as amended;
+(c) The Balance Sheet, the Statement of Profit
+and Loss including the Statement of Other
+Comprehensive Income, the Cash Flow Statement
+and Statement of Changes in Equity dealt with
+by this Report are in agreement with the books
+of account;
+(b) In our opinion, proper books of account as
+required by law have been kept by the Company
+so far as it appears from our examination of
+those books;
+(a) We have sought and obtained all the information
+and explanations which to the best of our
+knowledge and belief were necessary for the
+purposes of our audit;
+As required by Section 143(3) of the Act, we
+report that:
+2.
+As required by the Companies (Auditor's Report)
+Order, 2020 (the "Order"), issued by the Central
+Government of India in terms of sub-section (11) of
+section 143 of the Act, we give in the "Annexure 1" a
+statement on the matters specified in paragraphs 3 and
+4 of the Order.
+•
+1.
+As fully described in note 54(12) of the Standalone Ind
+AS financial statements, the Company has prepared
+these standalone Ind AS financial statements to give
+effect to the Scheme of arrangement in the nature of
+amalgamation and merger of Sun Pharma Global FZE
+with the Company with an appointed date of January 01,
+2020. We did not audit the financial statements and other
+financial information, in respect of Sun Pharma Global
+FZE, whose Ind AS financial statements, without giving
+effect to elimination of intra-group transactions included
+total assets of 83,523.4 Million as at March 31, 2021,
+total income of 13,379.1 Million, total net loss after
+tax of 12,973.2 Million and total comprehensive loss
+of 11,889.3 Million for the year ended March 31, 2021
+and net cash inflow of 343.9 Million for the period from
+April 01, 2020 to March 31, 2021. These Ind AS financial
+statements and other financial information have been
+audited by other auditor whose report has been furnished
+to us. Our conclusion, in so far as it relates to the amounts
+and disclosures of Sun Pharma Global FZE is based solely
+on report of such other auditor. Our conclusion is not
+modified in respect of this matter.
+OTHER MATTER
+From the matters communicated with those charged with
+governance, we determine those matters that were of
+most significance in the audit of the standalone Ind AS
+financial statements for the financial year ended March
+31, 2022 and are therefore the key audit matters. We
+describe these matters in our auditor's report unless law or
+regulation precludes public disclosure about the matter or
+when, in extremely rare circumstances, we determine that a
+matter should not be communicated in our report because
+the adverse consequences of doing so would reasonably
+be expected to outweigh the public interest benefits of
+such communication.
+We also provide those charged with governance with a
+statement that we have complied with relevant ethical
+requirements regarding independence, and to communicate
+with them all relationships and other matters that may
+reasonably be thought to bear on our independence, and
+where applicable, related safeguards.
+We communicate with those charged with governance
+regarding, among other matters, the planned scope and
+timing of the audit and significant audit findings, including
+any significant deficiencies in internal control that we
+identify during our audit.
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+REPORT ON OTHER LEGAL AND REGULATORY
+REQUIREMENTS
+With respect to the adequacy of the internal
+financial controls with reference to these
+standalone Ind AS financial statements and
+the operating effectiveness of such controls,
+refer to our separate Report in "Annexure 2" to
+this report;
+Our audit procedures amongst others included the following:
+• Tested supporting schedules and evidence to ascertain that the
+accounting is as per the terms of the scheme of arrangement.
+•
+• Engaged tax specialists, to evaluate management's assessment of
+the outcome of these litigations. Our specialists considered legal
+precedence and other rulings in evaluating management's position on
+these tax litigations
+Obtained list of ongoing tax litigations from management along with
+their assessment of the cases based on past precedents, judgements
+and matters in the jurisdiction, legal opinions sought by management,
+correspondences with tax department etc.
+Evaluated the design and tested the operating effectiveness of controls
+in respect of the identification and evaluation of tax litigations/deferred
+tax and the recording and re-assessment of the related liabilities/assets
+and provisions and disclosures.
+•
+•
+Our audit procedures amongst others included the following:
+Identification and disclosure of related parties was a
+significant area of focus and hence considered it as a Key
+Audit Matter.
+Identification and disclosures of Related Parties (as described
+The Company has related party transactions which include,
+amongst others, sale and purchase of goods/services to its
+subsidiaries, associates, joint ventures and other related
+parties and lending, investment and borrowing to/from its
+subsidiaries, associates and joint ventures.
+Recognition of deferred tax assets involves the assessment
+of its recoverability within the allowed time frame requiring
+significant estimate of the financial projections, availability
+of sufficient taxable income in the future and also involving
+significant judgements in the interpretation of tax regulations
+and tax positions adopted by the Company. Considering the
+judgement involved in determining the recovery of deferred
+tax assets, the matter is considered a Key Audit Matter
+The assessment of outcome of litigations involves significant
+judgement which is dependent on the facts of each case,
+supporting judicial precedents and legal opinions of external
+and internal legal counsels and hence the matter has been
+considered as a Key Audit Matter.
+The Company has significant tax litigations for which the
+Company assesses the outcome on a case-to-case basis
+considering the underlying facts of each tax litigation.
+Adverse outcomes could significantly impact the Company's
+reported results and balance sheet position.
+Tax litigations and recognition of deferred tax assets (as described in Note 9 and 38 of the standalone Ind AS financial statements)
+How our audit addressed the key audit matter
+Key audit matter
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+Tested management's assumptions including forecasts and sensitivity
+analysis in respect of recoverability of deferred taxes on unabsorbed
+depreciation/carry forward losses/Minimum Alternate Tax (MAT) credit.
+• Verified disclosures of the tax positions, tax loss carry forwards and tax
+litigations in the standalone Ind AS financial statements.
+in Note 49 of the standalone Ind AS financial statements)
+Our audit procedures amongst others included the following:
+Tested the exchange restatements to check mathematical accuracy.
+Read the approval obtained from NCLT.
+•
+•
+• Traced the numbers pertaining to Sun Pharma Global FZE in the
+restated financial information of the Company for the year ended March
+31, 2021 to the audited financial statements of Sun Pharma Global FZE.
+Obtained the audited financial statements of Sun Pharma Global FZE
+for the year ended March 31, 2021.
+•
+Evaluated the design and tested the operating effectiveness of the
+controls over the accounting for business combination.
+•
+Our audit procedures amongst others included the following:
+Evaluated the disclosures in the standalone Ind AS financial statements.
+Ind AS financial statements)
+The merger has a significant impact on the standalone Ind
+AS financial statements of the Company including assets,
+revenue, results, tax, reserves and comparative numbers.
+This transaction had a significant effect on the standalone
+Ind AS financial statements for the year and hence is
+considered as Key Audit Matter.
+Merger of Sun Pharma Global FZE (as described in Note 54(12) of the standalone Ind AS financial statements)
+Verified the disclosures in the standalone Ind AS financial statements
+for compliance with Ind AS 24.
+Read declarations of related party transactions given to the Board of
+Directors and Audit Committee.
+•
+•
+• Read minutes of the meetings of the Board of Directors and Audit
+Committee and traced related party transactions with limits approved
+by Audit Committee/Board.
+Evaluated the design and tested the operating effectiveness of controls
+over identification and disclosure of related party transactions.
+Obtained a list of related parties from the Company's management
+and traced the related parties to declarations given by directors,
+where applicable, and to Note 49 of the standalone Ind AS
+financial statements.
+•
+•
+Pursuant to scheme of arrangement in the nature of
+amalgamation and merger approved by National Company
+Law Tribunal ("NCLT") on August 31, 2021, Sun Pharma
+Global FZE has been merged with the Company with an
+appointed date of January 01, 2020. As disclosed in Note
+54(12) to the standalone Ind AS financial statements, the
+merger is accounted for as a business combination under
+common control.
+that was merged with the
+(g) In our opinion, the managerial remuneration for
+the year ended March 31, 2022 has been paid
+/ provided by the Company to its directors in
+accordance with the provisions of section 197
+read with Schedule V to the Act;
+i.
+5
+No
+95.9
+Solrex
+Freehold Land
+High Courts of respective
+states.
+Limited
+Laboratories
+approval of the Honorable
+7
+No
+2.9
+Ranbaxy
+Leasehold Land
+7 The title deeds are in the
+name of erstwhile companies
+that were merged with the
+Company under relevant
+provisions of the Companies
+Act, 1956/2013 in terms of
+7
+123.1
+Ranbaxy Drugs
+Limited
+Ranbaxy
+Laboratories
+Limited
+No
+including building
+Pharmaceuticals
+located thereon
+Company
+1
+No
+The title deeds are in the
+5
+No
+22
+89.9
+Sun Pharma Global
+FZE
+4.1
+2.7
+Various
+Limited
+located thereon
+Pharmaceuticals
+including building
+25
+No
+3.6
+Tamilnadu Dadha
+Freehold Land
+Building
+Building
+(h) With respect to the other matters to be included
+in the Auditor's Report in accordance with Rule
+11 of the Companies (Audit and Auditors) Rules,
+2014, as amended in our opinion and to the
+best of our information and according to the
+explanations given to us:
+or employee
+Period held -
+(In Years)
+The final dividend paid by the Company
+during the year in respect of that declared
+for the previous year is in accordance with
+section 123 of the Act to the extent it
+applies to payment of dividend.
+(c) Based on such audit procedures that
+were considered reasonable and
+appropriate in the circumstances,
+nothing has come to our notice that
+has caused us to believe that the
+representations under sub-clause (a) and
+(b) contain any material misstatement.
+by or on behalf of the Funding Party
+("Ultimate Beneficiaries") or provide any
+guarantee, security or the like on behalf
+of the Ultimate Beneficiaries; and
+identified in any manner whatsoever
+V.
+(b) The management has represented
+that, to the best of its knowledge
+and belief and read with note 54(21)
+to the standalone Ind AS financial
+statements, no funds have been
+received by the Company from any
+person(s) or entity(ies), including foreign
+entities ("Funding Parties"), with the
+understanding, whether recorded in
+writing or otherwise, that the Company
+shall, whether, directly or indirectly, lend
+or invest in other persons or entities
+(a) The management has represented
+that, to the best of its knowledge
+and belief and read with note 54(21)
+to the standalone Ind AS financial
+statements, no funds have been
+advanced or loaned or invested
+(either from borrowed funds or share
+premium or any other sources or kind
+of funds) by the Company to or in any
+other person(s) or entity(ies), including
+foreign entities ("Intermediaries"), with
+the understanding, whether recorded
+in writing or otherwise, that the
+Intermediary shall, whether, directly
+or indirectly lend or invest in other
+persons or entities identified in any
+manner whatsoever by or on behalf of
+the Company ("Ultimate Beneficiaries")
+or provide any guarantee, security
+or the like on behalf of the
+Ultimate Beneficiaries;
+There has been no delay in transferring
+amounts, required to be transferred, to the
+Investor Education and Protection Fund by
+the Company, except a sum of 1.2 Million
+which has been kept in abeyance due to
+pending legal cases.
+if any, on long-term contracts including
+derivative contracts - Refer Note 24 and 28
+to the standalone Ind AS financial statements;
+The Company has made provision, as required
+under the applicable law or accounting
+standards, for material foreseeable losses,
+iv.
+iii.
+ii.
+122
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+121
+Scaling up Specialty. Leading with Care.
+in its standalone Ind AS financial statements
+- Refer Note 38 to the standalone Ind AS
+financial statements;
+The Company has disclosed the impact of
+pending litigations on its financial position
+The interim dividend declared and paid by
+the Company during the year and until the
+date of this audit report is in accordance with
+section 123 of the Act.
+Reason for not being held in
+name of company*
+As stated in note 42 to the standalone Ind AS
+financial statements, the Board of Directors
+of the Company have proposed final dividend
+for the year which is subject to the approval
+of the members at the ensuing Annual
+General Meeting. The amount of dividend
+declared is in accordance with section 123 of
+the Act to the extent it applies to declaration
+of dividend.
+Chartered Accountants
+Whether promoter,
+director or their
+relative
+Gross Carrying value
+(* Millions)
+Held in name of
+Freehold Land
+Freehold Land
+Description
+(c) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease
+agreements are duly executed in favour of the lessee) disclosed in note 54(22) to the financial statements
+included in property, plant and equipment are held in the name of the Company, except for the following
+immovable properties for which registration of title deeds is in process:
+(B) The Company has maintained proper records, where relevant, showing full particulars of intangible assets.
+(b) All Property, Plant and Equipment have not been physically verified by management during the year but there is
+a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company
+and the nature of its assets. No material discrepancies were noticed on such verification.
+(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and
+situation of Property, Plant and Equipment.
+RE: SUN PHARMACEUTICALS INDUSTRIES LIMITED (THE "COMPANY")
+ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE UNDER THE
+HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS"
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+UDIN: 22105754AJVRMM8346
+Place of Signature: Mumbai
+Date: May 30, 2022
+Membership Number: 105754
+Partner
+per Paul Alvares
+ICAI Firm Registration Number: 324982E/E300003
+For S RBC & CO LLP
+AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF
+THE STANDALONE IND AS FINANCIAL STATEMENTS
+Our objectives are to obtain reasonable assurance about
+whether the standalone Ind AS financial statements as
+a whole are free from material misstatement, whether
+due to fraud or error and to issue an auditor's report that
+includes our opinion. Reasonable assurance is a high level
+of assurance but is not a guarantee that an audit conducted
+in accordance with SAs will always detect a material
+misstatement when it exists. Misstatements can arise from
+fraud or error and are considered material if, individually
+or in the aggregate, they could reasonably be expected
+to influence the economic decisions of users taken on the
+basis of these standalone Ind AS financial statements.
+9,451.3
+21,273.9
+132
+Movements in working capital:
+Operating profit before working capital changes
+3,339.8
+444.2
+Effect of exchange rate changes
+(75.6)
+(48.8)
+Sundry balances written back, net
+244.4
+263.2
+Provision / write off / (reversal) for doubtful trade receivables / advances
+(2,075.7)
+Gain on sale of investment in subsidiary
+(0.4)
+(57.7)
+Net (gain) loss on sale of financial assets measured at fair value through other comprehensive
+income
+(107.3)
+(65.0)
+(71.7)
+(0.5)
+Net loss/(gain) arising on financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through profit or loss
+(Increase)/ decrease in inventories
+(383.4)
+(Increase) decrease in trade receivables
+Increase
+Net Income tax (paid) / refund received (including interest on refunds)
+(1,788.4)
+54,768.2
+Cash generated from/ (used in) operations
+(6,760.4)
+11,096.0
+Increase (decrease) in provisions
+(1,452.4)
+15,187.0
+(8,679.9)
+(13,388.6)
+757.2
+2,561.1
+(6,436.9)
+23,384.4
+(4,950.4)
+196.8
+25,734.4
+15,731.5
+Increase (decrease) in other liabilities
+(decrease) in trade payables
+(Increase)/decrease in other assets
+21,595.4
+(135.4)
+(825.8)
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 30, 2022
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+ANOOP DESHPANDE
+Company Secretary
+(DIN: 00005588)
+Managing Director
+DILIP S. SHANGHVI
+Mumbai, May 30, 2022
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the standalone financial statements
+^Represents re-measurement of the defined benefit plans.
+151.6 245,879.5
+21,543.5
+Statutory Reports
+Dividend income on investments
+Financial Statements
+STANDALONE CASH FLOW STATEMENT
+(4,390.2)
+2,675.2
+3,881.0
+Interest income
+Finance costs
+19.2
+1,348.3
+Net (gain) / loss on sale/write off /impairment of property, plant and equipment, other
+intangible assets and intangible assets under development
+12,364.3
+13,499.5
+Depreciation and amortisation expense
+8,555.7
+3,068.6
+Year ended
+March 31, 2021
+Year ended
+March 31, 2022
+Adjustments for:
+Profit before tax
+A. Cash flow from operating activities
+Particulars
+* in Million
+FOR THE YEAR ENDED MARCH 31, 2022
+Standalone Accounts
+45.4
+(2,376.7)
+76,363.6
+Refund from escrow account for buy-back
+Others
+Subsidiary companies
+Repayment towards lease liabilities
+Particulars
+* in Million
+FOR THE YEAR ENDED MARCH 31, 2022
+STANDALONE CASH FLOW STATEMENT
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+135
+Scaling up Specialty. Leading with Care.
+(74,783.9)
+13.4
+17.3
+(20,564.2)
+(65,020.3)
+(88,290.0)
+45,986.6
+98,472.2
+85,611.2
+Net increase (decrease) in working capital demand loan
+Others
+Finance costs
+Subsidiary companies
+Dividend paid
+Year ended
+March 31, 2022
+50.6
+Effect of exchange differences on restatement of foreign currency cash and cash equivalents
+Cash and cash equivalents at the end of the year
+3,148.3
+3,510.6
+Cash and cash equivalents at the beginning of the year
+475.7
+634.1
+Net increase/ (decrease) in cash and cash equivalents (A+B+C)
+(9,997.3)
+(48,708.5)
+(15,594.7)
+(21,589.2)
+(2,928.8)
+(3,523.4)
+4,250.0
+(129.4)
+(109.0)
+(262.4)
+(261.2)
+March 31, 2021
+Year ended
+Net cash used in financing activities (C)
+Net cash generated from/ (used in) operating activities (A)
+383.4
+14,638.1
+135.4
+26,339.3
+88.2
+8,129.0
+(9,208.1)
+(28,302.3)
+Received back / matured from /assigned to
+Subsidiary companies
+Purchase of investments
+Others
+Subsidiary companies
+Subsidiary companies
+Given to
+Loans/Inter corporate deposits
+702.2
+465.0
+Proceeds from disposal of property, plant and equipment and intangible assets
+intangible assets and intangible assets under development)
+(8,080.7)
+(8,499.0)
+Payments for purchase of property, plant and equipment (including capital work-in-progress,
+B. Cash flow from investing activities
+(4,165.1)
+Others
+(27,021.0)
+(14,787.6)
+(54,857.7)
+Proceeds from sale of investments
+Repayment of borrowings
+Others
+Subsidiary company
+Proceeds from borrowings
+C. Cash flow from financing activities
+Net cash (used in) / from investing activities (B)
+Subsidiary companies
+Dividend received from
+671.8
+226.0
+Interest received
+(11.8)
+16.5
+12.5
+Fixed deposits/ margin money matured
+(1,050.1)
+Fixed deposits/margin money placed
+Bank balances not considered as cash and cash equivalents
+82,098.3
+18,204.3
+53,303.5
+Others
+Subsidiary companies
+(78,361.0)
+(113.4)
+790.4
+7.5 51,435.0
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+The accompanying notes are an integral part of the standalone financial statements
+As per our report of even date
+Diluted (in)
+Basic (in)
+Earnings per equity share (face value per equity share - ₹ 1)
+(XI) TOTAL COMPREHENSIVE INCOME FOR THE YEAR (IX+X)
+(X) Total other comprehensive income (A+B)
+Total -(B)
+Income tax on above
+Foreign currency translation reserve [gain/(loss)]
+Income tax on above
+other comprehensive income
+C.
+b. Gain (loss) on debt instrument measured at fair value through
+Income tax on above
+hedging instruments in a cash flow hedge
+Effective portion of gain / (loss) on designated portion of
+a.
+B) Items that may be reclassified to the statement of profit or loss
+per PAUL ALVARES
+Particulars
+Partner
+Mumbai, May 30, 2022
+(1,916.1)
+(5.2)
+(916.2)
+(626.8)
+(984.0)
+(759.2)
+(1,722.2)
+199.9
+(0.2)
+359.0
+(104.4)
+(375.8)
+172.1
+1,112.4
+(492.4)
+* in Million
+Year ended
+March 31, 2021
+45
+45
+Year ended
+March 31, 2022
+Notes
+Scaling up Specialty. Leading with Care.
+Membership No.: 105754
+8,418.8
+FOR THE YEAR ENDED MARCH 31, 2022
+Standalone Accounts
+Total - (A)
+Income tax on above
+b. Gain (loss) on equity instrument measured at fair value
+through other comprehensive income
+Income tax on above
+Gain/(loss) on remeasurement of the defined benefit plans
+a.
+A) Items that will not be reclassified to the statement of profit or loss
+OTHER COMPREHENSIVE INCOME
+(X)
+(IX) PROFIT/ (LOSS) FOR THE YEAR (VII-VIII)
+Total tax expense / (credit) (VIII)
+Deferred tax-exceptional
+Deferred tax
+Current tax
+(VIII) TAX EXPENSE / (CREDIT)
+8,555.7
+3,068.6
+(VII) PROFIT BEFORE TAX (V-VI)
+895.6
+18,205.3
+54 (2)
+37
+STANDALONE STATEMENT OF PROFIT AND LOSS
+(5,535.8)
+9 & 37
+Financial Statements
+Statutory Reports
+Corporate Overview
+621.6
+67.8
+(3.0)
+(20.8)
+697.2
+233.9
+39.0
+78.1
+(111.6)
+(223.4)
+8,424.0
+(999.9)
+131.7
+4,068.5
+4,406.0
+54 (2)
+(2,317.4)
+5,198.3
+2,449.1
+(790.4)
+136,120.8
+(0.4)
+(0.4)
+8,424.0
+(5.2)
+736.6
+358.8 (1,722.2)
+358.8 (1,722.2)
+694.2
+694.2
+^(72.6)
+8,351.4
+(15,590.6)
+Payment of dividend
+Total comprehensive income for the year
+Other comprehensive income for the year
+276,556.5
+(264.7)
+32,594.3
+(8.4)
+22,339.1
+(254.4) 23,825.0
+(254.1)
+243,962.2
+(256.3)
+(0.3) 1,485.9
+1.0
+34,779.3 140,052.7
+16,655.7 26,832.0 (1,653.3)
+51,435.0 166,884.7 (1,652.3)
+8,424.0
+Profit for the year
+736.6
+7.5
+8,418.8
+2,399.3
+43.8
+11,874.1
+22,258.5
+2,399.3
+Balance as at March 31, 2022
+Transfer on sale of equity instruments
+(1,916.1)
+(21,589.1)
+(15,590.6)
+269,384.7
+(999.9)
+(916.2)
+(104.4) (559.3) (320.3)
+(104.4) (559.3) (320.3)
+213.1
+213.1
+(999.9)
+^(145.3)
+(1,145.2)
+(21,589.1)
+Payment of dividend
+Total comprehensive income for the year
+Other comprehensive income for the year
+Loss for the year
+471.9
+104.4 22,102.8
+(958.1)
+7.5 51,435.0 159,645.5
+43.8
+22,258.5 11,874.1
+Balance as at March 31, 2021
+3.5
+43.8
+2,399.3
+reserve
+Equity
+share
+capital
+Particulars
+Other comprehensive income (OCI)
+Reserve and surplus
+Other Equity
+* in Million
+FOR THE YEAR ENDED MARCH 31, 2022
+STANDALONE STATEMENT OF CHANGES IN EQUITY
+34
+134
+133
+Mumbai, May 30, 2022
+C. S. MURALIDHARAN
+Chief Financial Officer
+ANOOP DESHPANDE
+Company Secretary
+SAILESH T. DESAI
+Wholetime Director
+(DIN : 00005443)
+(DIN: 00005588)
+Managing Director
+DILIP S. SHANGHVI
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+3.5
+Capital Securities
+premium
+22,258.5 11,874.1
+Amalgamation
+reserve
+Adjusted balance as at March 31, 2020
+-
+7.5
+43.8
+53,575.2 11,874.1
+(31,316.7)
+Add - Transfer on merger [Refer Note 54 (12)]
+2,399.3
+Balance as at March 31, 2020
+hedges
+reserve
+cash flow
+translation
+Total
+portion of
+Effective
+Foreign
+currency
+Debt
+instrument
+through
+OCI
+Equity
+instrument
+through
+OCI
+reserve
+Retained
+earnings
+General
+reserve
+Capital
+redemption
+4,195.3
+3,510.6
+Corporate Overview
+144,165.1
+Total expenses (IV)
+137.6
+(2,389.6)
+Net (gain) loss on foreign currency transactions
+49,318.2
+52,662.5
+35
+Other expenses
+12,364.3
+13,499.5
+3 (a), 3 (b) & 4
+Depreciation and amortisation expense
+2,675.2
+3,881.0
+34
+Finance costs
+18,059.8
+20,007.8
+33
+Employee benefits expense
+133,629.9
+(1,796.4)
+(V) PROFIT BEFORE EXCEPTIONAL ITEM AND TAX (III - IV)
+1
+Borrowings
+Changes in fair value
+Effect of changes in foreign exchange rates
+Changes from financing cash flows
+Opening balance
+Particulars
+Year ended March 31, 2022
+* in Million
+Change in financial liability / asset arising from financing activities
+2
+3,503.3
+7.3
+3,510.6
+4,186.7
+8.6
+4,195.3
+As at
+March 31, 2021
+in Million
+As at
+March 31, 2022
+Cash and cash equivalents in cash flow statement (Refer Note 15)
+Cash on hand
+In current accounts
+Balances with banks
+Particulars
+Cash and cash equivalents comprises of
+Notes:
+Derivatives, net
+[(Liabilities) / Asset]
+(1,831.8)
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+FOR THE YEAR ENDED MARCH 31, 2022
+STANDALONE STATEMENT OF PROFIT AND LOSS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+131
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 30, 2022
+SAILESH T. DESAI
+Wholetime Director
+(DIN : 00005443)
+(DIN : 00005588)
+Managing Director
+DILIP S. SHANGHVI
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+ANOOP DESHPANDE
+Company Secretary
+Scaling up Specialty. Leading with Care.
+Mumbai, May 30, 2022
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+The accompanying notes are an integral part of the standalone financial statements
+As per our report of even date
+437,347.9
+Particulars
+32
+(1)
+(11)
+12,042.1
+12,486.0
+Purchases of stock-in-trade
+40,829.1
+45,849.7
+31
+Cost of materials consumed
+143,081.2
+1,920.7
+141,160.5
+Year ended
+March 31, 2021
+* in Million
+165,439.0
+9,579.2
+30
+Year ended
+March 31, 2022
+155,859.8
+29
+Notes
+(IV) EXPENSES
+(III) Total income (I + II)
+Other income
+Revenue from operations
+407,654.8
+Borrowings
+Derivatives, net
+[(Liabilities) / Asset]
+All other assets are classified as non-current.
+b.
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+137
+Scaling up Specialty. Leading with Care.
+• Cash or cash equivalent unless restricted from being
+exchanged or used to settle a liability for at least
+twelve months after the reporting period
+• Expected to be realised within twelve months after
+the reporting period, or
+• Held primarily for the purpose of trading
+• Expected to be realised or intended to be sold or
+consumed in normal operating cycle
+The Company presents assets and liabilities in
+the balance sheet based on current / non-current
+classification. An asset is treated as current when it is:
+Current vs. Non-current
+The Company has consistently applied the following
+accounting policies to all periods presented in these
+financial statements.
+• Level 3 inputs are unobservable inputs for the asset
+or liability.
+• Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the
+asset or liability, either directly or indirectly; and
+• Level 1 inputs are quoted prices (unadjusted) in
+active markets for identical assets or liabilities that
+the entity can access at the measurement date;
+In addition, for financial reporting purposes, fair
+value measurements are categorised into Level 1,
+2, or 3 based on the degree to which the inputs
+to the fair value measurements are observable
+and the significance of the inputs to the fair value
+measurement in its entirety, which are described
+as follows:
+at the measurement date, regardless of whether
+that price is directly observable or estimated using
+another valuation technique. In estimating the fair
+value of an asset or a liability, the Company takes into
+account the characteristics of the asset or liability if
+market participants would take those characteristics
+into account when pricing the asset or liability at the
+measurement date. Fair value for measurement and/
+or disclosure purposes in these financial statements
+is determined on such a basis, except for share-based
+payment transactions that are within the scope of Ind AS
+102, leasing transactions that are within the scope of Ind
+AS 116, and measurements that have some similarities
+to fair value but are not fair value, such as net realisable
+value in Ind AS 2 or value in use in Ind AS 36.
+a.
+Fair value is the price that would be received to
+sell an asset or paid to transfer a liability in an
+orderly transaction between market participants
+A liability is current when:
+The standalone financial statements are presented
+in and all values are rounded to the nearest
+Million (000,000) upto one decimal, except when
+otherwise indicated.
+• It is expected to be settled in normal operating cycle
+It is held primarily for the purpose of trading
+• There is no unconditional right to defer the
+settlement of the liability for at least twelve months
+after the reporting period
+138
+Items of property, plant and equipment acquired
+through exchange of non-monetary assets are
+An item of property, plant and equipment is
+derecognised upon disposal or when no future
+economic benefits are expected to arise from the
+continued use of the asset. Any gain or loss arising
+on the disposal or retirement of an item of property,
+plant and equipment is determined as the difference
+between the sales proceeds and the carrying amount
+of property, plant and equipment and is recognised in
+profit or loss.
+When parts of an item of property, plant and
+equipment have different useful lives, they are
+accounted for as separate items (major components) of
+property, plant and equipment.
+Assets in the course of construction for production,
+supply or administrative purposes are carried at cost,
+less any recognised impairment loss. Cost includes
+purchase price, borrowing costs if capitalisation criteria
+are met and directly attributable cost of bringing the
+asset to its working condition for the intended use.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate. Such assets
+are classified to the appropriate categories of property,
+plant and equipment when completed and ready for
+intended use. Depreciation of these assets, on the
+same basis as other assets, commences when the
+assets are ready for their intended use.
+Items of property, plant and equipment are stated in
+balance sheet at cost less accumulated depreciation
+and accumulated impairment losses, if any. Freehold
+land is not depreciated.
+Property, plant and equipment
+Operating segments are reported in a manner
+consistent with the internal reporting provided to the
+chief operating decision maker. The chief operating
+decision maker of the Company is responsible for
+allocating resources and assessing performance of the
+operating segments.
+Segment reporting
+Non-monetary items that are measured in terms of
+historical cost in foreign currency are measured using
+the exchange rates at the date of initial transaction.
+translation reserve. Exchange difference in the
+foreign currency translation reserve are reclassified
+to statement of profit or loss account on the
+disposal of the foreign operation.
+d.
+C.
+• exchange differences relating to the translation of
+the results and the net assets of the Company's
+foreign operations from their functional currencies
+to the Company's presentation currency (i.e *) are
+recognised directly in the other comprehensive
+income and accumulated in foreign currency
+• exchange differences on transactions entered into
+in order to hedge certain foreign currency risks (see
+Note 2.2.i below for hedging accounting policies).
+• exchange differences on foreign currency
+borrowings relating to assets under construction
+for future productive use, which are included in
+the cost of those assets when they are regarded
+as an adjustment to interest costs on those foreign
+currency borrowings (see Note 2.2.r).
+On initial recognition, transactions in currencies other
+than the Company's functional currency (foreign
+currencies) are translated at exchange rates on the
+date of the transactions. Monetary assets and liabilities
+denominated in foreign currencies at the reporting
+date are translated into the functional currency at
+the exchange rate on that date. Exchange differences
+arising on the settlement of monetary items or
+on translating monetary items at rates different
+from those at which they were translated on initial
+recognition during the period or in previous period are
+recognised in profit or loss in the period in which they
+arise except for:
+Foreign currency
+The operating cycle is the time between the
+acquisition of assets for processing and their
+realisation in cash and cash equivalents. The Company
+has identified twelve months as its operating cycle.
+Deferred tax assets and liabilities are classified as non-
+current assets and liabilities.
+The Company classifies all other liabilities as non-
+current.
+• It is due to be settled within twelve months after the
+reporting period, or
+Year ended March 31,2021
+Historical cost is generally based on the fair value
+of the consideration given in exchange for goods
+and services.
+2.2 Basis of preparation and presentation
+As per our report of even date
+The accompanying notes are an integral part of the standalone financial statements
+For movement of lease liabilities, Refer Note 47.
+Closing balance
+(42.9)
+(169.6)
+71,364.7
+302.3
+48,687.1
+Other changes
+(42.9)
+94.8
+(302.7)
+(16.7)
+246.8
+66.9
+4,284.7
+59.6
+(23,226.7)
+(161.7)
+67,552.3
+(42.9)
+71,364.7
+For S RBC & CO LLP
+The financial statements have been prepared on the
+historical cost basis, except for: (i) certain financial
+instruments that are measured at fair values at the
+end of each reporting period; (ii) Non-current assets
+classified as held for sale which are measured at the
+lower of their carrying amount and fair value less
+costs to sell; (iii) derivative financial instrument and (iv)
+defined benefit plans - plan assets that are measured
+at fair values at the end of each reporting period, as
+explained in the accounting policies below.
+Chartered Accountants
+per PAUL ALVARES
+These financial statements are separate financial
+statements of the Company (also called standalone
+financial statements). The Company has prepared
+financial statements for the year ended March 31,
+2022 in accordance with Indian Accounting Standards
+(Ind AS) notified under the Companies (Indian
+Accounting Standards) Rules, 2015 (as amended)
+together with the comparative period data as at and
+for the year ended March 31, 2021.
+NOTE 2: SIGNIFICANT ACCOUNTING POLICIES
+2.1 Statement of compliance
+The standalone financial statement were authorised for
+issue in accordance with a resolution of the directors on
+May 30, 2022.
+Sun Pharmaceutical Industries Limited (SPIL or the
+"Company") is a public limited company incorporated and
+domiciled in India, having it's registered office at Vadodara,
+Gujarat, India. SPIL is listed on the BSE Limited and National
+Stock Exchange of India Limited. The Company is engaged
+in the business of manufacturing, developing and marketing
+a wide range of branded and generic formulations and
+Active Pharmaceutical Ingredients (APIs). The Company has
+various manufacturing locations spread across the country
+with trading and other incidental and related activities
+extending to the global markets.
+NOTE 1: GENERAL INFORMATION
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 30, 2022
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+Managing Director
+(DIN: 00005588)
+DILIP S. SHANGHVI
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+ANOOP DESHPANDE
+Company Secretary
+136
+Mumbai, May 30, 2022
+Membership No.: 105754
+Partner
+ICAI Firm Registration No. : 324982E/E300003
+TOTAL EQUITY AND LIABILITIES
+167,963.2
+161,775.3
+13,374.5
+3,240.4
+9
+751.0
+651.3
+8
+8,527.7
+4,158.7
+154.2
+36,566.3
+7
+67
+(b) Financial assets
+(a) Inventories
+(2) Current assets
+Total non-current assets
+(j) Other non-current assets
+(i) Income tax assets (Net)
+(h) Deferred tax assets (Net)
+(iii) Other financial assets
+(ii) Loans
+Investments
+10
+(i)
+8,836.7
+11
+(iv) Bank balances other than (iii) above
+3,510.6
+4,195.3
+15
+(iii) Cash and cash equivalents
+65,852.4
+42,451.6
+14
+(ii) Trade receivables
+310.0
+1,930.4
+13
+Investments
+(i)
+34,234.2
+34,037.4
+12
+310,047.1
+310,617.3
+3,913.9
+2,350.1
+20,826.3
+16
+(g) Financial assets
+153,404.1
+Particulars
+* in Million
+AS AT MARCH 31, 2022
+STANDALONE BALANCE SHEET
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+129
+Scaling up Specialty. Leading with Care.
+Membership Number: 105754
+UDIN: 22105754AJVRMM8346
+Place of Signature: Mumbai
+Date: May 30, 2022
+Partner
+per Paul Alvares
+ICAI Firm Registration Number: 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+statements and such internal financial controls over
+financial reporting with reference to these standalone Ind
+AS financial statements were operating effectively as at
+March 31, 2022, based on the internal control over financial
+reporting criteria established by the Company considering
+the essential components of internal control stated in the
+Guidance Note on Audit of Internal Financial Controls Over
+Financial Reporting issued by the Institute of Chartered
+Accountants of India.
+In our opinion, the Company has, in all material respects,
+adequate internal financial controls over financial reporting
+with reference to these standalone Ind AS financial
+OPINION
+Because of the inherent limitations of internal financial
+controls over financial reporting with reference to these
+standalone Ind AS financial statements, including the
+possibility of collusion or improper management override
+of controls, material misstatements due to error or fraud
+may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial
+reporting with reference to these standalone Ind AS
+financial statements to future periods are subject to the risk
+that the internal financial control over financial reporting
+with reference to these standalone Ind AS financial
+statements may become inadequate because of changes
+in conditions, or that the degree of compliance with the
+policies or procedures may deteriorate.
+INHERENT LIMITATIONS OF INTERNAL FINANCIAL
+CONTROLS OVER FINANCIAL REPORTING WITH
+REFERENCE TO THESE STANDALONE IND AS
+FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+Statutory Reports
+ASSETS
+150,903.3
+(1) Non-current assets
+(b) Capital work-in-progress
+5
+(f) Investments in the nature of equity in subsidiaries
+6,311.8
+4,697.0
+(e) Intangible assets under development
+46,561.8
+46,224.1
+4
+1,208.0
+1,208.0
+4
+4,592.0
+3,589.4
+48,918.1
+49,695.7
+3 (a) & 3 (b)
+As at
+March 31, 2021
+As at
+March 31, 2022
+Notes
+(d) Other Intangible assets
+(c) Goodwill
+(a) Property, plant and equipment
+1,154.3
+99.2
+(v) Loans
+44
+(a) total outstanding dues of micro and small enterprises
+(ii) Trade payables
+18,364.5
+30.7
+25
+68,449.9
+60,717.0
+6,235.8
+3,976.3
+24
+7,185.5
+6,187.5
+23
+2,028.4
+1,896.8
+53,000.2
+48,656.4
+2722
+47
+2,399.3
+266,985.4
+269,384.7
+(b) total outstanding dues of creditors other than micro and small
+245,879.5
+44
+852.0
+39,433.4
+99,513.3
+101,058.3
+Total liabilities
+Total current liabilities
+12,046.6
+25,625.5
+28
+(c) Provisions
+6,333.9
+7,463.1
+27
+(b) Other current liabilities
+22,294.8
+40,678.1
+26
+(iv) Other financial liabilities
+188.1
+156.5
+47
+(iii) Lease liabilities
+enterprises
+1,052.8
+26,051.6
+2,399.3
+243,480.2
+21
+20
+Financial Statements
+Statutory Reports
+Corporate Overview
+130
+437,347.9
+407,654.8
+TOTAL ASSETS
+127,300.8
+97,037.5
+Total current assets
+10,557.3
+9,155.7
+19
+(c) Other current assets
+5,266.0
+4,021.8
+18
+(vi) Other financial assets
+7,471.1
+91.0
+17
+Standalone Accounts
+STANDALONE BALANCE SHEET
+AS AT MARCH 31, 2022
+Particulars
+22
+As at
+March 31, 2021
+As at
+March 31, 2022
+Notes
+* in Million
+(i) Borrowings
+(a) Financial liabilities
+(2) Current liabilities
+Total non-current liabilities
+Provisions
+(VI) Exceptional item
+(b) Other non-current liabilities
+Borrowings
+(i)
+(a) Financial liabilities
+(1) Non-current liabilities
+Liabilities
+Total equity
+(b) Other equity
+(a) Equity share capital
+Equity
+EQUITY AND LIABILITIES
+(ii) Lease liabilities
+Corporate Overview
+Statutory Reports
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+The Company uses forward currency contracts
+as hedges of its exposure to foreign currency risk
+in forecast transactions and firm commitments.
+Amounts recognised as OCI are transferred to profit
+or loss when the hedged transaction affects profit
+or loss, such as when a forecast sale occurs. When
+the hedged item is the cost of a non-financial asset
+or non-financial liability, the amounts recognised as
+OCI are transferred to the initial carrying amount of
+the non-financial asset or liability.
+If the hedging instrument expires or is sold,
+terminated or exercised or if its designation as a
+hedge is revoked, or when the hedge no longer
+meets the criteria for hedge accounting, any
+cumulative gain or loss previously recognised in
+OCI remains separately in equity until the forecast
+transaction occurs or the foreign currency firm
+commitment is met. When a forecast transaction
+is no longer expected to occur, the gain or loss
+accumulated in equity is recognised immediately
+in profit or loss.
+Treasury shares
+The Company has Employee Benefit Trust (EBT) for
+providing share-based payment to its employees.
+Own equity instruments that are reacquired (treasury
+shares) are deducted from equity. No gain or loss
+is recognised in profit or loss on the purchase, sale,
+issue or cancellation of the Company's own equity
+instruments. Consideration paid or received shall be
+recognised directly in equity.
+Dividend distribution to equity holders of the Company
+The Company recognises a liability to make dividend
+distributions to equity holders of the Company when
+the distribution is authorised and the distribution
+is no longer at the discretion of the Company. As
+per the corporate laws in India, a distribution is
+authorised when it is approved by the shareholders. A
+corresponding amount is recognised directly in equity.
+Leases
+The Company assesses at contract inception whether
+a contract is, or contains, a lease. That is, if the
+contract conveys the right to control the use of an
+identified asset for a period of time in exchange for
+consideration. To assess whether a contract conveys
+the right to control the use of an identified asset, the
+Company assesses whether: (i) the contract involves
+the use of an identified asset (ii) the Company has
+substantially all of the economic benefits from use of
+the asset through the period of the lease and (iii) the
+Company has the right to direct the use of the asset.
+Company as a lessee
+The Company applies a single recognition and
+measurement approach for all leases, except for
+short-term leases and leases of low-value assets. The
+Company recognises lease liabilities to make lease
+payments and right-of-use assets representing the
+right to use the underlying assets.
+i)
+Right-of-use assets
+The Company recognises right-of-use assets at the
+commencement date of the lease (i.e., the date the
+underlying asset is available for use). Right-of-use
+assets are measured at cost, less any accumulated
+depreciation and impairment losses, and adjusted
+for any remeasurement of lease liabilities. The
+cost of right-of-use assets includes the amount
+of lease liabilities recognised, initial direct costs
+incurred, and lease payments made at or before
+the commencement date less any lease incentives
+received. Right-of-use assets are depreciated on
+a straight-line basis over the shorter of the lease
+term and the estimated useful lives of the assets,
+as follows:
+•
+Building
+• Plant and Machinery
+• Leasehold land
+2-10 years
+10-25 years
+60-99 years
+Company as a lessor
+Short-term leases and leases of low-value assets
+The Company applies the short-term lease
+recognition exemption to its short-term leases
+(i.e., those leases that have a lease term of 12
+months or less from the commencement date
+and do not contain a purchase option). It also
+applies the lease of low-value assets recognition
+exemption to leases that are considered to be
+low value. Lease payments on short-term leases
+and leases of low-value assets are recognised
+as expense on a straight-line basis over the
+lease term.
+the accretion of interest and reduced for the lease
+payments made. In addition, the carrying amount
+of lease liabilities is remeasured if there is a
+modification, a change in the lease term, a change
+in the lease payments (e.g., changes to future
+payments resulting from a change in an index
+or rate used to determine such lease payments)
+or a change in the assessment of an option to
+purchase the underlying asset.
+iii
+k.
+FOR THE YEAR ENDED MARCH 31, 2022
+j.
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+145
+Scaling up Specialty. Leading with Care.
+In calculating the present value of lease payments,
+the Company uses its incremental borrowing rate
+at the lease commencement date because the
+interest rate implicit in the lease is not readily
+determinable. After the commencement date, the
+amount of lease liabilities is increased to reflect
+At the commencement date of the lease, the
+Company recognises lease liabilities measured at
+the present value of lease payments to be made
+over the lease term. The lease payments include
+fixed payments (including insubstance fixed
+payments) less any lease incentives receivable,
+variable lease payments that depend on an index
+or a rate, and amounts expected to be paid under
+residual value guarantees. The lease payments
+also include the exercise price of a purchase
+option reasonably certain to be exercised by
+the Company and payments of penalties for
+terminating the lease, if the lease term reflects
+the Company exercising the option to terminate.
+Lease Liabilities
+The right-of-use assets are also subject to
+impairment. Refer to the accounting policies in
+section (g) Impairment of non-financial assets.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Reclassification of financial assets
+Derivatives embedded in non-derivative host contracts
+that are not financial assets within the scope of Ind
+AS 109 are accounted for as separate derivatives and
+recorded at fair value if their economic characteristics
+and risks are not closely related to those of the host
+contracts and the host contracts are not held for
+trading or designated at fair value though profit or loss.
+These embedded derivatives are measured at fair value
+with changes in fair value recognised in profit or loss,
+unless designated as effective hedging instruments.
+Embedded derivatives
+144
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+The Company determines classification of financial
+assets and liabilities on initial recognition. After
+initial recognition, no reclassification is made for
+financial assets which are equity instruments and
+financial liabilities. For financial assets which are debt
+instruments, a reclassification is made only if there is
+a change in the business model for managing those
+assets. Changes to the business model are expected
+to be infrequent. The Company's senior management
+determines change in the business model as a result
+of external or internal changes which are significant
+to the Company's operations. Such changes are
+evident to external parties. A change in the business
+model occurs when the Company either begins or
+ceases to perform an activity that is significant to
+its operations. If the Company reclassifies financial
+assets, it applies the reclassification prospectively
+from the reclassification date which is the first day
+of the immediately next reporting period following
+the change in business model. The Company does
+not restate any previously recognised gains, losses
+(including impairment gains or losses) or interest.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Scaling up Specialty. Leading with Care.
+A financial liability is derecognised when the obligation
+under the liability is discharged or cancelled or
+expires. When an existing financial liability is replaced
+by another from the same lender on substantially
+different terms, or the terms of an existing liability
+are substantially modified, such an exchange or
+modification is treated as the derecognition of the
+original liability and the recognition of a new liability.
+The difference between the carrying amount of the
+financial liability derecognised and the consideration
+paid and payable is recognised in profit or loss.
+Derecognition
+Financial guarantee contracts are those contracts
+that require a payment to be made to reimburse the
+holder for a loss it incurs because the specified debtor
+fails to make a payment when due in accordance with
+the terms of a debt instrument. Financial guarantee
+contracts are recognised initially as a liability at fair
+value, adjusted for transaction costs that are directly
+attributable to the issuance of the guarantee. If not
+designated as at FVTPL, are subsequently measured at
+the higher of the amount of loss allowance determined
+as per impairment requirements of Ind AS 109 and the
+amount initially recognised less cumulative amount of
+income recognised.
+Financial guarantee contracts
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using the
+EIR method. Amortised cost is calculated by taking
+into account any discount or premium on acquisition
+and fees or costs that are an integral part of the EIR.
+The EIR amortisation is included as finance costs in
+the profit or loss.
+143
+Rental income from operating lease is generally
+recognised on a straight-line basis over the
+term of the relevant lease. Where the rentals
+are structured solely to increase in line with
+expected general inflation to compensate for the
+Company's expected inflationary cost increases,
+such increases are recognised in the year in which
+such benefits accrue. Initial direct costs incurred
+in negotiating and arranging an operating lease
+are added to the carrying amount of the leased
+asset and recognised over the lease term on the
+same basis as rental income. Contingent rents are
+recognised as revenue in the period in which they
+are earned.
+Derivative financial instruments and hedge accounting
+Initial recognition and subsequent measurement
+Any gains or losses arising from changes in the fair
+value of derivatives are taken directly to profit or loss,
+except for the effective portion of cash flow hedges,
+which is recognised in OCI and later reclassified to
+Financial Statements
+Statutory Reports
+Corporate Overview
+The effective portion of changes in the fair value
+of the hedging instrument is recognised in OCI in
+the cash flow hedge reserve, while any ineffective
+portion is recognised immediately in profit or loss.
+(ii) Cash flow hedges
+Changes in fair value of the designated portion of
+derivatives that qualify as fair value hedges are
+recognised in profit or loss immediately, together
+with any changes in the fair value of the hedged
+asset or liability that are attributable to the
+hedged risk.
+The Company uses derivative financial instruments,
+such as forward currency contracts, full currency
+swap, principal only swap, options and interest rate
+swaps to hedge its foreign currency risks and interest
+rate risks respectively. Such derivative financial
+instruments are initially recognised at fair value on the
+date on which a derivative contract is entered into and
+are subsequently re-measured at fair value at the end
+of each reporting period. Derivatives are carried as
+financial assets when the fair value is positive and as
+financial liabilities when the fair value is negative.
+Fair value hedges
+Hedges that meet the strict criteria for hedge
+accounting are accounted for, as described below:
+At the inception of a hedge relationship, the
+Company formally designates and documents the
+hedge relationship to which the Company wishes to
+apply hedge accounting and the risk management
+objective and strategy for undertaking the hedge.
+The documentation includes the Company's risk
+management objective and strategy for undertaking
+hedge, the hedging/economic relationship, the hedged
+item or transaction, the nature of the risk being
+hedged, hedge ratio and how the entity will assess the
+effectiveness of changes in the hedging instrument's
+fair value in offsetting the exposure to changes in the
+hedged item's fair value or cash flows attributable to
+the hedged risk. Such hedges are expected to be highly
+effective in achieving offsetting changes in fair value
+or cash flows and are assessed on an ongoing basis to
+determine that they actually have been highly effective
+throughout the financial reporting periods for which
+they were designated.
+• Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable to
+a particular risk associated with a recognised asset
+or liability or a highly probable forecast transaction
+or the foreign currency risk in an unrecognised
+firm commitment.
+• Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+For the purpose of hedge accounting, hedges are
+classified as:
+profit or loss when the hedge item affects profit or
+loss or treated as basis adjustment if a hedged forecast
+transaction subsequently results in the recognition of a
+non-financial asset or non-financial liability.
+(i)
+Financial liabilities that are not held-for-trading and are
+not designated as at FVTPL are measured at amortised
+cost in subsequent accounting periods. The carrying
+amounts of financial liabilities that are subsequently
+measured at amortised cost are determined based
+on the effective interest rate (EIR) method. Interest
+expense that is not capitalised as part of costs of an
+asset is included in the 'Finance costs' line item in the
+profit or loss.
+Inventories
+I.
+Scaling up Specialty. Leading with Care.
+147
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+148
+milestone payments are creditable against future
+royalty payments, the milestones are deferred and
+released over the period in which the royalties are
+anticipated to be received.
+Sales returns
+The Company accounts for sales returns accrual by
+recording an allowance for sales returns concurrent
+with the recognition of revenue at the time of a
+product sale. This allowance is based on the Company's
+estimate of expected sales returns. With respect
+to established products, the Company considers its
+historical experience of sales returns, levels of inventory
+in the distribution channel, estimated shelf life, product
+discontinuances, price changes of competitive products,
+and the introduction of competitive new products, to
+the extent each of these factors impact the Company's
+business and markets. With respect to new products
+introduced by the Company, such products have
+historically been either extensions of an existing line of
+product where the Company has historical experience
+or in therapeutic categories where established products
+exist and are sold either by the Company or the
+Company's competitors.
+Contract balances
+Contract assets
+A contract asset is the right to consideration in
+exchange for goods or services transferred to the
+customer. If the Company performs by transferring
+goods or services to a customer before the
+customer pays consideration or before payment is
+due, a contract asset is recognised for the earned
+consideration that is conditional.
+Trade receivables
+A receivable represents the Company's right to an
+amount of consideration that is unconditional (i.e., only
+the passage of time is required before payment of the
+consideration is due).
+Contract liabilities
+A contract liability is the obligation to transfer goods
+or services to a customer for which the Company has
+received consideration (or an amount of consideration
+is due) from the customer. If a customer pays
+consideration before the Company transfers goods
+or services to the customer, a contract liability is
+recognised when the payment is made or the payment
+is due (whichever is earlier). Contract liabilities are
+recognised as revenue when the Company performs
+under the contract.
+0.
+The Company operates a defined benefit gratuity plan
+which requires contribution to be made to a separately
+administered fund.
+Defined benefit plans
+Employee benefits
+The Company recognises government grants only
+when there is reasonable assurance that the conditions
+attached to them will be complied with, and the grants
+will be received. When the grant relates to an expense
+item, it is recognised in the statement of profit and
+loss on a systematic basis over the periods that the
+related costs, for which it is intended to compensate,
+are expensed. When the grant relates to an asset,
+the Company deducts such grant amount from the
+carrying amount of the asset.
+Government grants
+Interest income from a financial asset is recognised
+when it is probable that the economic benefits will
+flow to the Company and the amount of income can be
+measured reliably. Interest income is accrued on a time
+basis, by reference to the principal outstanding and at
+the effective interest rate applicable, which is the rate
+that exactly discounts estimated future cash receipts
+through the expected life of the financial asset to that
+asset's net carrying amount on initial recognition.
+Revenues include amounts derived from product out-
+licensing agreements. These arrangements typically
+consist of an initial up-front payment on inception of
+the license and subsequent payments dependent on
+achieving certain milestones in accordance with the
+terms prescribed in the agreement. Non-refundable
+up-front license fees received in connection with
+product out-licensing agreements are deferred and
+recognised over the period in which the Company
+has continuing performance obligations. Milestone
+payments which are contingent on achieving certain
+clinical milestones are recognised as revenues either
+on achievement of such milestones, if the milestones
+are considered substantive, or over the period the
+Company has continuing performance obligations,
+if the milestones are not considered substantive. If
+Dividend income is recognised when the Company's
+right to receive the payment is established, which is
+generally when shareholders approve the dividend.
+Royalty revenue is recognised on an accrual basis
+in accordance with the substance of the relevant
+agreement (provided that it is probable that economic
+benefits will flow to the Company and the amount
+of revenue can be measured reliably). Royalty
+arrangements that are based on production, sales and
+other measures are recognised by reference to the
+underlying arrangement.
+Royalties
+Revenue from services rendered is recognised in the
+profit or loss as the underlying services are performed.
+Upfront non-refundable payments received are
+deferred and recognised as revenue over the expected
+period over which the related services are expected to
+be performed.
+Rendering of services
+q.
+p.
+Dividend and interest income
+Out-licensing arrangements
+Revenue in an amount equal to the base purchase
+price is recognised in these transactions upon delivery
+of products to the business partners. An additional
+amount representing the profit share component
+is recognised as revenue only to the extent that
+it is highly probable that a significant reversal will
+not occur.
+The Company from time to time enters into
+arrangements for the sale of its products in certain
+markets. Under such arrangements, the Company
+sells its products to the business partners at a base
+purchase price agreed upon in the arrangement and is
+also entitled to a profit share which is over and above
+the base purchase price. The profit share is typically
+dependent on the ultimate net sale proceeds or net
+profits, subject to any reductions or adjustments that
+are required by the terms of the arrangement.
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+146
+If the effect of the time value of money is material,
+provisions are determined by discounting the expected
+future cash flows at a pre-tax rate that reflects current
+market assessments of the time value of money and
+the risks specific to the liability. Where discounting is
+used, the increase in the provision due to the passage
+of time is recognised as a finance cost.
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Provisions, contingent liabilities and contingent assets
+Provisions are recognised when the Company has a
+present obligation (legal or constructive) as a result of
+past event, it is probable that an outflow of resources
+embodying economic benefits will be required to settle
+the obligation and a reliable estimate can be made of
+the amount of obligation. When the Company expects
+some or all of a provision to be reimbursed, for example,
+under an insurance contract, the reimbursement is
+recognised as a separate asset, but only when the
+reimbursement is certain. The expense relating to a
+provision is presented in the statement of profit and
+loss net of any reimbursement.
+Cash and cash equivalents in the balance sheet
+comprise cash at banks and on hand and short-term
+deposits with an original maturity of three months
+or less, which are subject to an insignificant risk of
+changes in value.
+Cash and cash equivalents
+The factors that the Company considers in determining
+the allowance for slow moving, obsolete and other
+non-saleable inventory include estimated shelf life,
+planned product discontinuances, price changes,
+ageing of inventory and introduction of competitive
+new products, to the extent each of these factors
+impact the Company's business and markets. The
+Company considers all these factors and adjusts the
+inventory provision to reflect its actual experience on a
+periodic basis.
+Net realisable value is the estimated selling price in the
+ordinary course of business, less the estimated costs of
+completion and costs necessary to make the sale.
+Cost of work-in-progress and finished goods comprises
+direct material, direct labour and an appropriate
+proportion of variable and fixed overhead expenditure.
+m.
+For the purpose of the statement of cash flows, cash
+and cash equivalents consist of cash and short-term
+deposits, as defined above, net of outstanding bank
+overdrafts as they are considered an integral part of
+the Company's cash management.
+Cost of raw materials and packing materials, stock-in-
+trade, stores and spares includes cost of purchases and
+other costs incurred in bringing the inventories to its
+present location and condition.
+FOR THE YEAR ENDED MARCH 31, 2022
+A provision for restructuring is recognised when
+the Company has a detailed formal restructuring
+plan and has raised a valid expectation in those
+affected that it will carry out the restructuring by
+starting to implement the plan or announcing its main
+features to those affected by it. The measurement
+of a restructuring provision includes only the direct
+expenditure arising from the restructuring, which are
+those amounts that are both necessarily entailed by
+the restructuring and not associated with the ongoing
+activities of the entity.
+Profit Sharing Revenues
+In determining the transaction price, the Company
+considers the effects of variable consideration,
+the existence of significant financing components,
+noncash consideration, and consideration payable
+to the customer (if any). The Company estimates
+variable consideration at contract inception until it
+is highly probable that a significant revenue reversal
+in the amount of cumulative revenue recognised will
+not occur when the associated uncertainty with the
+variable consideration is subsequently resolved.
+it has pricing latitude and is exposed to inventory and
+credit risks. Revenue is stated net of goods and service
+tax and net of returns, chargebacks, rebates and other
+similar allowances. These are calculated on the basis
+of historical experience and the specific terms in the
+individual contracts.
+Revenue from contracts with customers is recognised
+when control of the goods or services are transferred
+to the customer at an amount that reflects the
+consideration to which the Company expects to be
+entitled in exchange for those goods or services.
+The Company has generally concluded that it is the
+principal in its revenue arrangements, since it is the
+primary obligor in all of its revenue arrangement, as
+Sale of goods
+Revenue
+Restructuring
+n.
+(ii) Present obligations arising from past events
+where it is not probable that an outflow of
+resources will be required to settle the obligation
+or a reliable estimate of the amount of the
+obligation cannot be made.
+Possible obligations which will be confirmed only
+by future events not wholly within the control of
+the Company, or
+(i)
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+Present obligations arising under onerous contracts are
+recognised and measured as provisions. An onerous
+contract is considered to exist where the Company
+has a contract under which the unavoidable costs of
+meeting the obligations under the contract exceed
+the economic benefit expected to be received from
+the contract.
+Onerous contracts
+Contingent assets are not recognised in the financial
+statements. A contingent asset is disclosed where an
+inflow of economic benefits is probable. Contingent
+assets are assessed continually and, if it is virtually
+certain that an inflow of economic benefits will arise,
+the asset and related income are recognised in the
+period in which the change occurs.
+Financial liabilities subsequently measured at
+amortised cost
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade, stores
+and spares s and finished goods are measured at the
+lower of cost and net realisable value. The cost of all
+categories of inventories is based on the weighted
+average method.
+Financial liabilities designated upon initial recognition
+at fair value through profit or loss are designated as
+such at the initial date of recognition, and only if the
+criteria in Ind AS 109 are satisfied. For instruments
+not held-for-trading financial liabilities designated
+as at FVTPL, fair value gains/ losses attributable to
+changes in own credit risk are recognised in OCI,
+unless the recognition of the effects of changes in the
+liability's credit risk in OCI would create or enlarge an
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+f.
+g.
+The consideration for acquisition of intangible asset
+which is based on reaching specific milestone that
+are dependent on the Company's future activity
+is recognised only when the activity requiring the
+payment is performed.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate. All other
+expenditures, including expenditures on internally
+generated goodwill and brands, are recognised in the
+statement of profit and loss as incurred.
+Amortisation is recognised on a straight-line basis
+over the estimated useful lives of intangible assets.
+Intangible assets that are not available for use are
+amortised from the date they are available for use.
+The estimated useful lives for Product related
+intangibles and Other intangibles ranges from 3 to
+12 years.
+The estimated useful life and amortisation method are
+reviewed at the end of each reporting period, with the
+effect of any changes in estimate being accounted for
+on a prospective basis.
+De-recognition of intangible assets
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits are
+expected from their use. Gain or loss arising on such
+de-recognition is recognised in profit or loss, and are
+measured as the difference between the net disposal
+proceeds, if any, and the carrying amount of respective
+intangible assets as on the date of de-recognition.
+Investments in the nature of equity in subsidiaries and
+associates
+The Company has elected to recognise its investments
+in equity instruments in subsidiaries and associates at
+cost in the separate financial statements in accordance
+with the option available in Ind AS 27, 'Separate
+Financial Statements'. Impairment policy applicable on
+such investments is explained in Note 2.2.g.
+Impairment of non-financial assets
+The carrying amounts of the Company's non-
+financial assets are reviewed at each reporting date
+to determine whether there is any indication of
+impairment. If any such indication exists, then the
+asset's recoverable amount is estimated in order to
+determine the extent of the impairment loss, if any.
+h.
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+Scaling up Specialty. Leading with Care.
+i.
+Non-current assets and disposal groups are classified
+as held for sale if their carrying amount will be
+recovered principally through a sale transaction rather
+than through continuing use. This condition is regarded
+as met only when the asset (or disposal group) is
+available for immediate sale in its present condition
+subject only to terms that are usual and customary
+for sales of such asset (or disposal group) and its sale
+is highly probable. Management must be committed
+to the sale, which should be expected to qualify for
+recognition as a completed sale within one year from
+the date of classification.
+Non-current assets held for sale
+In respect of other asset, impairment losses recognised
+in prior periods are assessed at each reporting date for
+any indications that the loss has decreased or no longer
+exists. An impairment loss is reversed if there has
+been a change in the estimates used to determine the
+recoverable amount. An impairment loss is reversed
+only to the extent that the asset's carrying amount
+does not exceed the carrying amount that would have
+been determined, net of depreciation or amortisation,
+if no impairment loss had been recognised.
+Goodwill is tested for impairment annually. Goodwill
+acquired in a business combination, for the purpose
+of impairment testing is allocated to cash-generating
+units that are expected to benefit from the synergies
+of the combination.
+An impairment loss is recognised in the profit or loss
+if the estimated recoverable amount of an asset or its
+cash generating unit is lower than its carrying amount.
+Impairment losses recognised in respect of cash-
+generating units are allocated to reduce the carrying
+amount of the other assets in the unit on a pro-rata basis.
+The recoverable amount of an asset or cash-
+generating unit (as defined below) is the greater of
+its value in use and its fair value less costs to sell.
+In assessing value in use, the estimated future cash
+flows are discounted to their present value using a
+pre-tax discount rate that reflects current market
+assessments of the time value of money and the risks
+specific to the asset or the cash-generating unit for
+which the estimates of future cash flows have not
+been adjusted. For the purpose of impairment testing,
+assets are grouped together into the smallest group
+of assets that generates cash inflows from continuing
+use that are largely independent of the cash inflows
+of other assets or groups of assets (the "cash-
+generating unit").
+140
+Acquired research and development intangible
+assets which are under development, are recognised
+as In-Process Research and Development assets
+("IPR&D"). IPR&D assets are not amortised, but
+evaluated for potential impairment on an annual
+basis or when there are indications that the carrying
+value may not be recoverable. Any impairment
+charge on such IPR&D assets is recognised in profit
+or loss. Intangible assets relating to products under
+development, other intangible assets not available
+for use and intangible assets having indefinite useful
+life are tested for impairment annually, or more
+frequently when there is an indication that the assets
+may be impaired. All other intangible assets are tested
+for impairment when there are indications that the
+carrying value may not be recoverable.
+Payments to third parties that generally take the form
+of up-front payments and milestones for in-licensed
+products, compounds and intellectual property are
+capitalised since the probability of expected future
+economic benefits criterion is always considered to be
+satisfied for separately acquired intangible assets.
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable
+to preparing the asset for its intended use. Other
+development expenditure is recognised in profit or
+loss as incurred.
+Vehicles
+Plant and equipment
+Buildings other than Factory Buildings*
+Factory Buildings
+Asset Category
+The estimated useful lives are as follows:
+Office equipment
+Depreciation is recognised on the cost of assets (other
+than freehold land and Capital work-in-progress) less
+their residual values on straight-line method over their
+useful lives as indicated in Part C of Schedule II of
+the Companies Act, 2013. Leasehold improvements
+are depreciated over period of the lease agreement
+or the useful life, whichever is shorter. Depreciation
+methods, useful lives and residual values are reviewed
+at the end of each reporting period, with the effect
+of any changes in estimate accounted for on a
+prospective basis.
+e.
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+accounting mismatch in profit or loss, in which case
+these effects of changes in credit risk are recognised in
+profit or loss. These gains/losses are not subsequently
+transferred to profit or loss. All other changes in fair
+value of such liability are recognised in the statement
+of profit or loss.
+measured at fair value, unless the exchange transaction
+lacks commercial substance or the fair value of either
+the asset received or asset given up is not reliably
+measurable, in which case the acquired asset is
+measured at the carrying amount of the asset given up.
+Non-current assets (and disposal groups) classified
+as held for sale are measured at the lower of their
+carrying amount and fair value less costs to sell.
+Non-current assets held for sale are not depreciated
+or amortised.
+Furniture and fixtures
+No. of years
+⚫ future economic benefits are probable; and
+⚫ the Company intends to and has sufficient
+resources/ability to complete development
+and to use or sell the asset.
+⚫ development costs can be measured reliably;
+⚫ the product or process is technically and
+commercially feasible;
+Expenditure on research activities undertaken with
+the prospect of gaining new scientific or technical
+knowledge and understanding are recognised as
+an expense when incurred. Development activities
+involve a plan or design for the production of new
+or substantially improved products and processes.
+An internally-generated intangible asset arising from
+development is recognised if and only if all of the
+following have been demonstrated:
+Research and development
+are capitalised only when they increase the future
+economic benefits embodied in the specific asset to
+which they relate.
+Other Intangible assets that are acquired by the
+Company and that have finite useful lives are measured
+at cost less accumulated amortisation and accumulated
+impairment losses, if any. Subsequent expenditures
+* Includes assets given under operating lease.
+Other Intangible assets
+Goodwill and Other Intangible assets
+Goodwill
+Software for internal use, which is primarily acquired
+from third-party vendors and which is an integral part
+of a tangible asset, including consultancy charges for
+implementing the software, is capitalised as part of the
+related tangible asset. Subsequent costs associated
+with maintaining such software are recognised
+as expense as incurred. The capitalised costs are
+amortised over the lower of the estimated useful life
+of the software and the remaining useful life of the
+tangible fixed asset.
+5-10
+2-5
+5-10
+10-30
+30-60
+3-25
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-
+controlling interest in the acquiree, over the fair
+value of the Company's share of identifiable net
+assets acquired. Goodwill is measured at cost less
+accumulated impairment losses.
+Financial instruments
+139
+A financial instrument is any contract that gives rise to
+a financial asset of one entity and a financial liability or
+equity instrument of another entity.
+Financial liabilities and equity instruments
+Classification as debt or equity
+The Company follows 'simplified approach' for
+recognition of impairment loss allowance on trade
+receivables or any contractual right to receive cash or
+another financial asset.
+In accordance with Ind AS 109, the Company applies
+expected credit loss (ECL) model for measurement
+and recognition of impairment loss on the Trade
+receivables or any contractual right to receive cash or
+another financial asset that result from transactions
+that are within the scope of Ind AS 115.
+Impairment of financial assets
+On derecognition of a financial asset in its entirety,
+the difference between the asset's carrying amount
+and the sum of the consideration received and
+receivable and the cumulative gain or loss that had
+been recognised in OCI and accumulated in equity is
+recognised in profit or loss if such gain or loss would
+have otherwise been recognised in profit or loss on
+disposal of that financial asset.
+reflects the rights and obligations that the Company
+has retained.
+Debt and equity instruments issued by the Company
+are classified as either financial liabilities or as equity
+in accordance with the substance of the contractual
+arrangements and the definitions of a financial liability
+and an equity instrument.
+When the Company has transferred its rights to
+receive cash flows from an asset or has entered into
+a pass-through arrangement, it evaluates if and to
+what extent it has retained the risks and rewards
+of ownership. When it has neither transferred nor
+retained substantially all of the risks and rewards of
+the asset, nor transferred control of the asset, the
+Company continues to recognise the transferred
+asset to the extent of the Company's continuing
+involvement. In that case, the Company also recognises
+an associated liability. The transferred asset and
+the associated liability are measured on a basis that
+• The contractual rights to receive cash flows from
+the asset have expired, or
+A financial asset (or, where applicable, a part of a
+financial asset or part of a group of similar financial
+assets) is primarily derecognised (i.e. removed from the
+Company's balance sheet) when:
+Derecognition
+Equity instruments included within the FVTPL
+category are measured at fair value with all changes
+recognised in the profit or loss.
+If the Company decides to classify an equity
+instrument as at FVTOCI, then all fair value changes
+on the instrument, including foreign exchange gain
+or loss and excluding dividends, are recognised in the
+OCI. There is no recycling of the amounts from OCI
+to profit or loss, even on sale of investment. However,
+the Company may transfer the cumulative gain or loss
+within equity.
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which
+are held for trading are classified as at FVTPL. For all
+other equity instruments, the Company may make an
+irrevocable election to present subsequent changes in
+the fair value in OCI. The Company makes such election
+on an instrument-by-instrument basis. The classification
+is made on initial recognition and is irrevocable.
+• The Company has transferred its rights to receive
+contractual cash flows from the asset or has
+assumed an obligation to pay the received cash
+flows in full without material delay to a third party
+under a 'pass-through' arrangement, and either (a)
+the Company has transferred substantially all the
+risks and rewards of the asset, or (b) the Company
+has neither transferred nor retained substantially
+all the risks and rewards of the asset, but has
+transferred control of the asset.
+Equity instruments
+Equity instruments
+Corporate Overview
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL when the
+financial liability is held for trading or is designated
+upon initial recognition as at fair value through
+profit or loss. Financial liabilities are classified as
+held for trading if they are incurred principally for
+the purpose of repurchasing in the near term or on
+initial recognition it is part of a portfolio of identified
+financial instruments that the Company manages
+together and has a recent actual pattern of short-term
+profit-taking. This category also includes derivative
+financial instruments that are not designated as
+hedging instruments in hedge relationships as defined
+by Ind AS 109. Gains or losses on liabilities held for
+trading are recognised in the profit or loss.
+All financial liabilities are subsequently measured at
+amortised cost using the effective interest method or
+at FVTPL.
+Subsequent measurement
+The Company's financial liabilities include trade and
+other payables, loans and borrowings including bank
+overdrafts and lease liabilities, financial guarantee
+contracts and derivative financial instruments.
+All financial liabilities are recognised initially at fair
+value and, in the case of loans and borrowings and
+payables, net of directly attributable transaction costs.
+Initial recognition and measurement
+An equity instrument is any contract that evidences
+a residual interest in the assets of an entity after
+deducting all of its liabilities. Equity instruments
+issued by the Company are recognised at the proceeds
+received, net of direct issue costs.
+The component parts of compound financial
+instruments (convertible notes) issued by the Company
+are classified separately as financial liabilities and
+equity in accordance with the substance of the
+contractual arrangements and the definitions of a
+financial liability and an equity instrument.
+Repurchase of the Company's own equity instruments
+is recognised and deducted directly in equity. No gain
+or loss is recognised in profit or loss on the purchase,
+sale, issue or cancellation of the Company's own
+equity instruments.
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Compound financial instruments
+142
+The application of simplified approach does not require
+the Company to track changes in credit risk. Rather, it
+recognises impairment loss allowance based on lifetime
+ECLs at each reporting date, right from its initial
+recognition. As a practical expedient, the Company
+uses a provision matrix to determine impairment
+loss allowance on portfolio of its trade receivables.
+The provision matrix is based on its historically
+observed default rates over the expected life of the
+trade receivables and is adjusted for forward-looking
+estimates. At every reporting date, the historical
+observed default rates are updated and changes in the
+forward-looking estimates are analysed.
+Initial recognition and measurement
+The asset is held within a business model
+whose objective is to hold assets for collecting
+contractual cash flows, and
+b)
+a)
+if both the following conditions are met:
+Debt instruments at amortised cost
+• Equity instruments measured at fair value through
+other comprehensive income (FVTOCI)
+Contractual terms of the asset give rise on
+specified dates to cash flows that are solely
+payments of principal and interest (SPPI) on the
+principal amount outstanding.
+• Debt instruments and equity instruments at fair
+value through profit or loss (FVTPL)
+• Debt instruments at amortised cost
+For purposes of subsequent measurement, financial
+assets are classified in four categories:
+Subsequent measurement
+All financial assets are recognised initially at fair value
+plus, in the case of financial assets not recorded at fair
+value through profit or loss, transaction costs that are
+attributable to the acquisition of the financial asset.
+Purchases or sales of financial assets that require
+delivery of assets within a time frame established by
+regulation or convention in the market place (regular
+way trades) are recognised on the date the Company
+commits to purchase or sale the financial assets.
+FOR THE YEAR ENDED MARCH 31, 2022
+Financial assets
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost
+is calculated by taking into account any discount or
+premium on acquisition and fees or costs that are
+an integral part of the EIR. The EIR amortisation is
+included in Other Income in the profit or loss. The
+losses arising from impairment are recognised in the
+profit or loss.
+A 'debt instrument' is measured at the amortised cost
+A 'debt instrument' is measured as at FVTOCI if both
+of the following criteria are met:
+Debt instrument at FVTOCI
+141
+Scaling up Specialty. Leading with Care.
+Debt instruments included within the FVTPL category
+are measured at fair value with all the changes in the
+profit or loss.
+In addition, the Company may elect to designate a debt
+instrument, which otherwise meets amortised cost or
+FVTOCI criteria, as at FVTPL. However, such election
+is allowed only if doing so reduces or eliminates a
+measurement or recognition inconsistency (referred to
+as 'accounting mismatch').
+FVTPL is a residual category for debt instruments. Any
+debt instrument, which does not meet the criteria for
+categorisation as at amortised cost or as FVTOCI, is
+classified as at FVTPL.
+Debt instrument at FVTPL
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+The contractual terms of the instrument give rise
+on specified dates to cash flows that are SPPI on
+the principal amount outstanding.
+The objective of the business model is achieved
+both by collecting contractual cash flows and
+selling the financial assets, and
+b)
+a)
+Debt instruments included within the FVTOCI
+category are measured initially as well as at each
+reporting date at fair value. Fair value movements are
+recognised in the other comprehensive income (OCI).
+However, the Company recognises interest income,
+impairment losses & reversals and foreign exchange
+gain or loss in the profit or loss. On derecognition of
+the asset, cumulative gain or loss previously recognised
+in OCI is reclassified from the equity to profit or
+loss. Interest earned whilst holding FVTOCI debt
+instrument is reported as interest income using the
+EIR method.
+9,340,000
+934.0
+(934.0)
+Shivalik Solid Waste Management Limited
+Shares of 10 each fully paid
+20,000
+0.2
+20,000
+Biotech Consortium India Limited
+Shares of 10 each fully paid
+50,000
+0.5
+0.5
+50,000
+934.0
+(934.0)
+0.2
+Less: Impairment in value of investment
+Quantity
+Shares of 10 each fully paid
+* in Million
+Less: Impairment in value of investment
+* in Million
+1,036,943
+148.7
+1,050,000
+9,340,000
+90.2
+1,412.2
+100,000
+1.0
+100,000
+1.0
+Shimal Research Laboratories Limited
+2,868,623
+(0.5)
+Security deposits (unsecured, considered good)
+Unbilled revenue (Refer Note 53)
+Corporate Overview
+NOTE : 7 LOANS (NON-CURRENT)
+Loans to employees
+Secured, considered good
+Unsecured, considered good
+Loans to subsidiaries (Refer Note 49 & 50) *
+Unsecured, considered good
+Aggregate amount of impairment in value of investments
+As at March 31, 2022
+* Loans have been granted for the purpose of their business.
+NOTE : 8 OTHER FINANCIAL ASSETS (NON-CURRENT)
+Interest accrued (unsecured, considered good)
+Scaling up Specialty. Leading with Care.
+As at March 31, 2021
+140,625
+Quantity
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+Aggregate amount of unquoted investments before
+impairment
+Regd. Notes maturing April 17, 2024
+State Bank of India 4.875%
+Statutory Reports
+Financial Statements
+Standalone Accounts
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Nimbua Greenfield (Punjab) Limited
+Shares of 10 each fully paid
+Watsun Infrabuild Private Limited
+Shares of 10 each fully paid
+Securities
+Quoted (Fair value through other comprehensive income)
+ONGC Videsh 4.625% Regd. Notes
+Regd. Notes maturing July 15, 2024
+NTPC 4.375% Regd. Euro Medium Term Notes
+Term Notes maturing November 26, 2024
+(0.5)
+As at March 31, 2022
+Quantity
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+FOR THE YEAR ENDED MARCH 31, 2022
+Preference shares unquoted (At cost)
+Sun Pharma Holdings
+As at March 31, 2022
+Quantity
+* in Million
+As at March 31, 2021
+Quantity
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+* in Million
+1,165,593,148
+73,642.2
+1,265,593,148
+80,411.1
+Sun Pharma Japan Ltd - Preference Shares
+Non-cumulative, redeemable preference Shares of JPY
+50,000 each fully paid
+5% Optionally Convertible Preference Shares USD 1
+each fully paid
+1,960
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Scaling up Specialty. Leading with Care.
+Zenotech Laboratories Limited
+* in Million
+Shares of 10 each fully paid
+Ordinary shares of Euro 1 each fully paid with premium
+15,853
+266.4
+155
+42,014,578
+35,128,078
+3,318.5
+(1,737.8)
+1,633.9
+1,580.7
+64,954.9
+65,175.1
+3,371.7
+(1,737.8)
+72.6
+1,960
+71.4
+NOTE: 6 INVESTMENTS (NON-CURRENT)
+183,523.8
+181,076.2
+3,371.7
+3,318.5
+33,491.4
+2,115.4
+Aggregate amount of impairment in value of investments
+Aggregate amount of quoted investments at market value
+33,491.4
+1,229.5
+Quoted (Fair value through other comprehensive income)
+Krebs Biochemicals and Industries Limited
+Shares of 10 each fully paid
+Amneal Pharmaceuticals Inc. (formerly known as Impax
+Laboratories Inc.,)
+Shares of USD 0.01 each fully paid
+Unquoted (Fair value through profit or loss)
+Enviro Infrastructure Co. Limited
+Equity instruments
+Aggregate book value (carrying value) of quoted investments
+before impairment
+Aggregate amount of unquoted investments before impairment
+85,728.2
+150,903.3
+Sun Pharmaceutical Industries (Australia) Pty. Ltd
+Redeemable preference shares of AUD 1 each
+Ranbaxy Pharma Proprietary Ltd
+Non-cumulative, redeemable preference shares of ZAR 1
+each
+Sun Pharma (Netherlands) B.V.
+69,644,566
+3,769.0
+280,000,000
+1,476.7
+Non-cumulative optionally convertible class B shares of
+Euro 100 each fully paid
+1,707,212
+14,734.4
+88,449.2
+153,404.1
+156
+1.4
+8,836.7
+8,836.7
+* in Million
+4,301.9
+1,240.4
+5,542.3
+Other assets
+2.2
+0.2
+Unabsorbed depreciation / carried forward losses
+2.4
+(529.8)
+Minimum Alternate Tax (MAT) credit entitlement
+13,374.5
+13,374.5
+(10,134.1)
+(9,604.3)
+3,240.4
+529.8
+(529.8)
+1,359.4
+619.2
+Deferred revenue
+587.8
+2,205.9
+(75.8)
+2,793.7
+Unbilled revenue
+19.7
+78.1
+(8.6)
+Allowance for doubtful debts and advances
+755.0
+144.9
+899.9
+Expenses claimed for tax purpose on payment basis
+662.1
+11.1
+3,240.4
+in Million
+As at
+March 31, 2022
+The unused tax credits will expire from financial year 2022-23 to financial year 2031-32 and unused tax losses will expire from financial year
+2022-23 to financial year 2029-30.
+NOTE: 10 INCOME TAX ASSETS (NET) (NON-CURRENT)
+Advance income tax *
+Net of provisions 6,161.9 Million (March 31, 2021 : 17,205.2 Million)
+* includes amount paid under protest
+158
+12,027.9
+As at
+March 31, 2022
+As at
+March 31, 2021
+Quoted (At cost less impairment in value of investments, if any)
+20,826.3
+20,826.3
+Statutory Reports
+Corporate Overview
+Standalone Accounts
+* in Million
+6,962.8
+2,410.7
+7,188.6
+As at
+March 31, 2021
+Deductible temporary differences, unused tax losses and unused tax credits for which no deferred
+tax assets have been recognised are attributable to the following:
+Tax losses
+Tax losses (Capital in nature)
+Unabsorbed depreciation
+Unused tax credits (MAT credit entitlement)
+Financial Statements
+Deductible temporary differences
+79,813.3
+63,153.8
+19,516.0
+13,581.1
+33,934.8
+28,088.7
+172.1
+(9.8)
+(238.1)
+Derivatives designated as hedges
+2,650.8
+4,158.7
+4,153.2
+4,153.2
+940.0
+934.5
+565.8
+* in Million
+As at
+March 31, 2021
+2.4
+2.9
+4.2
+3.8
+36,559.7
+36,566.3
+As at
+March 31, 2022
+70,000
+800.9
+100,000
+140,625
+1.4
+283,500
+2.9
+283,500
+2.9
+154.2
+1,507.9
+154.2
+148.7
+148.7
+940.0
+934.5
+160,000
+1,284.1
+8,521.0
+As at March 31, 2021
+Quantity
+8,527.7
+As at
+March 31, 2022
+March 31, 2022
+Deferred tax (liabilities) / assets in relation to:
+Difference between written down value of property, plant
+and equipment, intangible assets and capital work-in-
+progress as per books of accounts and income tax
+(6,081.4)
+(4,497.1)
+(10,578.5)
+Closing balance
+Tax on foreign currency translation reserve
+(759.2)
+Difference in carrying value and tax base of financial assets
+of investments
+(9.2)
+75.5
+(20.8)
+45.5
+759.2
+Recognised
+in other
+comprehensive
+income
+Recognised in
+profit or loss
+Opening balance
+April 01, 2021
+As at
+March 31, 2021
+33.8
+423.8
+445.5
+193.7
+305.5
+651.3
+751.0
+157
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE : 9 DEFERRED TAX ASSETS (NET)
+in Million
+* in Million
+Artes Biotechnology GmBh
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+1,000
+32,336.4
+1,065.1
+293.8
+769.1
+26,831.8
+(366.0)
+(3.2)
+(66.6)
+(24.0)
+(163.1)
+5,145.4
+187.2
+62.4
+82.9
+4,285.7
+Net book value
+1.6
+As at March 31, 2021
+Footnotes
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+152
+(iii) The aggregate depreciation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.
+(ii) For details of assets pledged as security refer Note 48.
+(i) Buildings include 8,620 (As at March 31, 2021 : 8,620) towards cost of shares in a co-operative housing society and also includes
+1.1 Million (As at March 31, 2021: 1.1 Million) and 1,133.0 Million (As at March 31, 2021 : 1,133.0 Million) towards cost of
+non-convertible preference shares of face value of 10/- each and compulsorily convertible debentures of face value of 10,000/- each in
+a Company respectively entitling the right of occupancy and use of premises and also includes 4.5 Million (March 31, 2021 : 4.5 Million)
+towards cost of flats not registered in the name of the Company but is entitled to right of use and occupancy.
+625.3 46,557.0
+661.0 47,385.1
+149.2
+179.0
+351.8
+406.7
+12,540.6 31,460.7
+12,708.3 32,075.4
+1,374.5
+1,409.6
+As at March 31, 2022
+0.1
+0.1
+0.2
+4,984.6
+182.0
+61.3
+90.7
+4,135.8
+514.8
+Depreciation expense
+(2.9)
+89.2
+8.1
+(0.2)
+(0.3)
+(0.5)
+(1.0)
+(0.9)
+Foreign currency translation difference
+Disposals
+(7.0)
+(157.0)
+(4.5)
+0.7
+0.5
+527.2
+(109.1)
+3,376.6
+As at March 31, 2022
+Disposals
+Depreciation expense
+Foreign currency translation difference
+27,555.4
+FOR THE YEAR ENDED MARCH 31, 2022
+881.0
+710.0
+22,708.5
+2,958.0
+As at March 31, 2021
+(228.5)
+(8.6)
+(51.4)
+297.9
+9.6
+NOTE: 3 (b) RIGHT-OF-USE ASSETS
+Leasehold Land
+166.2
+56.1
+1,070.7
+0.1
+95.6
+14.5
+Other than internally generated
+NOTE : 4 GOODWILL / INTANGIBLE ASSETS
+For details of Ind AS 116 disclosure refer Note 47.
+Footnote
+As at March 31, 2022
+As at March 31, 2021
+Net right-of-use assets
+As at March 31, 2022
+Disposals
+10.8
+Depreciation expense
+122.3
+218.8
+17.0
+(108.2)
+(107.7)
+(0.5)
+191.5
+88.7
+96.1
+6.7
+368.4
+141.8
+215.8
+10.8
+(16.6)
+(2.1)
+(14.5)
+85.7
+As at March 31, 2021
+Depreciation expense
+Disposals
+As at March 31, 2020
+(8.3)
+(774.5)
+Disposals
+261.8
+98.5
+163.3
+Additions
+3,250.5
+Total
+1,860.9
+Plant and
+equipment
+291.5
+1,098.1
+As at March 31, 2020
+Building
+(782.8)
+As at March 31, 2021
+Additions
+Disposals
+Accumulated depreciation
+2,762.3
+1,959.4
+372.4
+430.5
+As at March 31, 2022
+(116.8)
+* in Million
+(113.9)
+149.6
+39.8
+109.8
+2,729.5
+1,959.4
+446.5
+323.6
+(2.9)
+204.2
+16.7
+29.1
+Vehicles
+Office
+equipment
+Total
+At cost or deemed cost
+As at March 31, 2020
+1,147.6
+15,044.1
+2.4
+1.3
+695.2
+(110.2)
+16,084.9
+1,409.6
+As at March 31, 2022
+Disposals
+35.1
+Additions
+447.1
+Furniture
+and fixtures
+1,116.7
+Plant and
+equipment
+Freehold
+land
+If the business combination is achieved in stages, any
+previously held equity interest is re-measured at its
+acquisition date fair value and any resulting gain or loss
+is recognised in profit or loss or OCI, as appropriate.
+If the initial accounting for a business combination
+is incomplete by the end of the reporting period in
+which the combination occurs, the Company reports
+provisional amounts for the items for which the
+accounting is incomplete. Those provisional amounts
+are adjusted during the measurement period (see
+above), or additional assets or liabilities are recognised,
+to reflect new information obtained about facts and
+circumstances that existed at the acquisition date that,
+if known, would have affected the amounts recognised
+at that date.
+Business Combination involving entities or businesses
+under common control shall be accounted for using the
+pooling of interest method.
+Exceptional items
+Exceptional items refer to items of income or expense,
+including tax items, within the statement of profit and
+loss from ordinary activities which are non-recurring
+and are of such size, nature or incidence that their
+separate disclosure is considered necessary to explain
+the performance of the Company.
+Recent Accounting pronouncements
+Standards issued but not yet effective and not early
+adopted by the Company
+The Ministry of Corporate Affairs ("MCA”) notifies new
+standard or amendments to the existing standards.
+There is no such notification which would have been
+applicable from April 1, 2022.
+Scaling up Specialty. Leading with Care.
+151
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE : 3 (a) PROPERTY, PLANT AND EQUIPMENT
+in Million
+Buildings
+Including
+given on
+lease
+54,169.2
+15,498.6
+1,374.5
+(0.3)
+(0.5)
+(4.8)
+(2.8)
+281.1
+9.2
+10.3
+16.7
+153.6
+91.3
+Foreign currency translation difference
+Taken over on merger
+68,731.3
+1,128.8
+430.8
+(0.3)
+(8.7)
+Additions
+Disposals
+Foreign currency translation difference
+As at March 31, 2021
+(358.1)
+(9.8)
+(59.0)
+(8.2)
+(209.0)
+A contingent liability of the acquiree is assumed in a
+business combination only if such a liability represents a
+present obligation and arises from a past event, and its
+fair value can be measured reliably. On an acquisition-
+by-acquisition basis, the Company recognises any non-
+controlling interest in the acquiree either at fair value
+or at the non-controlling interest's proportionate share
+of the acquiree's identifiable net assets. Transaction
+costs that the Company incurs in connection with a
+business combination, such as finder's fees, legal fees,
+due diligence fees and other professional and consulting
+fees, are expensed as incurred.
+(69.6)
+5,466.8
+378.4
+65.3
+38.0
+4,320.1
+435.6
+229.4
+(2.5)
+25.7
+W.
+control is transferred to the acquirer. Judgment
+is applied in determining the acquisition date and
+determining whether control is transferred from one
+party to another. Control exists when the Company
+is exposed to, or has rights to, variable returns from
+its involvement with the entity and has the ability
+to affect those returns through power over the
+entity. In assessing control, potential voting rights
+are considered only if the rights are substantive. The
+Company measures goodwill as of the applicable
+acquisition date at the fair value of the consideration
+transferred, including the recognised amount of any
+non-controlling interest in the acquiree and the fair
+value of the acquirer's previously held equity interest
+in the acquiree (if any), less the net recognised amount
+of the identifiable assets acquired and liabilities
+assumed. When the fair value of the net identifiable
+assets acquired and liabilities assumed exceeds the
+consideration transferred, a bargain purchase gain is
+recognised immediately in the OCI and accumulates
+the same in equity as Capital Reserve where there
+exists clear evidence of the underlying reasons for
+classifying the business combination as a bargain
+purchase else the gain is directly recognised in equity
+as Capital Reserve. Consideration transferred includes
+the fair values of the assets transferred, liabilities
+incurred by the Company to the previous owners
+of the acquiree, and equity interests issued by the
+Company. Consideration transferred also includes the
+fair value of any contingent consideration. Changes
+in the fair value of the contingent consideration
+that qualify as measurement period adjustments
+are adjusted retrospectively, with corresponding
+adjustments against goodwill or capital reserve, as the
+case maybe. The subsequent accounting for changes
+in the fair value of the contingent consideration that
+do not qualify as measurement period adjustments
+depends on how the contingent consideration is
+classified. Contingent consideration that is classified
+as equity is not remeasured at subsequent reporting
+dates and its subsequent settlement is accounted
+for within equity. Contingent consideration that
+is classified as an asset or a liability is remeasured
+at fair value at subsequent reporting dates with
+the corresponding gain or loss being recognised
+in profit or loss. Consideration transferred does
+not include amounts related to settlement of pre-
+existing relationships.
+6,057.7
+224.4
+102.9
+28.5
+4,971.6
+4.1
+74,112.4
+1,506.3
+0.1
+0.1
+0.2
+FOR THE YEAR ENDED MARCH 31, 2022
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method
+with actuarial valuations being carried out at the end
+of each annual reporting period. The present value
+of the defined benefit obligation is determined by
+discounting the estimated future cash outflows by
+reference to market yields at the end of the reporting
+period on government bonds. The currency and
+term of the government bonds shall be consistent
+with the currency and estimated term of the post-
+employment benefit obligations. The current service
+cost of the defined benefit plan, recognised in the
+profit or loss as employee benefits expense, reflects
+the increase in the defined benefit obligation resulting
+from employee service in the current year, benefit
+changes, curtailments and settlements. Past service
+costs are recognised in profit or loss in the period of
+a plan amendment. The net interest cost is calculated
+by applying the discount rate to the net balance of
+the defined benefit obligation and the fair value of
+plan assets. This cost is included in employee benefit
+expense in profit or loss. Actuarial gains and losses
+arising from experience adjustments and changes
+in actuarial assumptions are charged or credited to
+OCI in the period in which they arise and is reflected
+immediately in retained earnings and is not reclassified
+to profit or loss.
+Termination benefits
+Termination benefits are recognised as an expense in
+the statement of profit and loss when the Company is
+demonstrably committed, without realistic possibility
+of withdrawal, to a formal detailed plan to either
+terminate employment before the normal retirement
+date, or to provide termination benefits as a result of
+an offer made to encourage voluntary redundancy.
+Termination benefits for voluntary redundancies are
+recognised as an expense in the statement of profit
+and loss if the Company has made an offer encouraging
+voluntary redundancy, it is probable that the offer will
+be accepted, and the number of acceptances can be
+estimated reliably.
+Short-term and Other long-term employee benefits
+Accumulated leave, which is expected to be utilised
+within the next 12 months, is treated as short-term
+employee benefit. The Company measures the
+expected cost of such absences as the additional
+amount that it expects to pay as a result of the unused
+entitlement that has accumulated at the reporting date.
+(236.0)
+The Company treats accumulated leave expected to be
+carried forward beyond twelve months, as long-term
+employee benefit for measurement purposes. Such
+(24.5)
+(4.7)
+Taken over on merger
+22,713.0
+699.7
+278.7
+607.6
+18,705.0
+2,422.0
+As at March 31, 2020
+Accumulated depreciation and impairment
+79,721.5
+1,726.1
+472.8
+1,120.9
+58,907.2
+(452.7)
+(77.3)
+r.
+long-term compensated absences are provided for
+based on the actuarial valuation using the projected
+unit credit method at the year-end. Actuarial gains/
+losses are immediately taken to the statement of profit
+and loss and are not deferred.
+The Company's net obligation in respect of other long
+term employee benefits is the amount of future benefit
+that employees have earned in return for their service
+in the current and previous periods. That benefit is
+discounted to determine its present value.
+t.
+u.
+Minimum Alternate Tax ('MAT') credit is recognised as
+deferred tax asset only when and to the extent there is
+convincing evidence that the Company will pay normal
+income tax during the period for which the MAT credit
+can be carried forward for set-off against the normal
+tax liability. MAT credit recognised as an asset is
+reviewed at each Balance Sheet date and written down
+to the extent the aforesaid convincing evidence no
+longer exists.
+Accruals for uncertain tax positions require
+management to make judgments of potential
+exposures. Accruals for uncertain tax positions are
+measured using either the most likely amount or the
+expected value amount depending on which method
+the entity expects to better predict the resolution of
+the uncertainty. Tax benefits are not recognised unless
+the management based upon its interpretation of
+applicable laws and regulations and the expectation of
+how the tax authority will resolve the matter concludes
+that such benefits will be accepted by the authorities.
+Once considered probable of not being accepted,
+management reviews each material tax benefit and
+reflects the effect of the uncertainty in determining
+the related taxable amounts.
+Earnings per share
+The Company presents basic and diluted earnings per
+share ("EPS") data for its equity shares. Basic EPS is
+calculated by dividing the profit or loss attributable to
+equity shareholders of the Company by the weighted
+average number of equity shares outstanding during
+the period. Diluted EPS is determined by adjusting
+the profit or loss attributable to equity shareholders
+and the weighted average number of equity shares
+outstanding for the effects of all dilutive potential
+ordinary shares, which includes all stock options
+granted to employees.
+The number of equity shares and potentially dilutive
+equity shares are adjusted retrospectively for all
+periods presented for any share splits and bonus
+shares issues including for changes effected prior to
+the approval of the financial statements by the Board
+of Directors.
+Business combination
+The Company uses the acquisition method of
+accounting to account for business combinations
+that occurred on or after April 01, 2015. The
+acquisition date is generally the date on which
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone Accounts
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+A deferred tax asset is recognised to the extent that it
+is probable that future taxable profits will be available
+against which the temporary difference can be utilised.
+Deferred tax assets are reviewed at each reporting
+date and are reduced to the extent that it is no longer
+probable that the related tax benefit will be realised.
+Withholding tax arising out of payment of dividends to
+shareholders under the Indian Income tax regulations
+is not considered as tax expense for the Company
+and all such taxes are recognised in the statement
+of changes in equity as part of the associated
+dividend payment.
+The Company recognises a deferred tax asset arising
+from unused tax losses or tax credits only to the
+extent that the entity has sufficient taxable temporary
+differences or there is convincing other evidence that
+sufficient taxable profit will be available against which
+the unused tax losses or unused tax credits can be
+utilised by the entity.
+Deferred tax is measured at the tax rates that are
+expected to be applied to the temporary differences
+when they reverse, based on the laws that have been
+enacted or substantively enacted by the end of the
+reporting period. Deferred tax assets and liabilities are
+offset if there is a legally enforceable right to set off
+corresponding current tax assets against current tax
+liabilities and the deferred tax assets and deferred tax
+liabilities relate to income taxes levied by the same tax
+authority on the Company.
+Deferred tax is recognised on temporary differences
+between the carrying amounts of assets and liabilities
+in the financial statements and the corresponding tax
+bases used in the computation of taxable profit.
+Defined contribution plans
+The Company's contributions to defined contribution
+plans are recognised as an expense as and when the
+services are received from the employees entitling
+them to the contributions. The Company does not
+have any obligation other than the contribution made.
+Share-based payment arrangements
+The grant date fair value of options granted to
+employees is recognised as an employee expense, with
+a corresponding increase in equity, on a straight line
+basis, over the vesting period, based on the Company's
+estimate of equity instruments that will eventually
+vest. At the end of each reporting period, the Company
+revises its estimate of the number of equity instruments
+expected to vest. The impact of the revision of the
+original estimates, if any, is recognised in profit or loss
+such that the cumulative expense reflects the revised
+estimate, with a corresponding adjustment to the
+equity-settled employee benefits reserve.
+For cash-settled share-based payments, a liability
+is recognised for the goods or services acquired,
+measured initially at the fair value of the liability. At
+the end of each reporting period until the liability is
+settled, and at the date of settlement, the fair value
+of the liability is remeasured, with any changes in fair
+value recognised in profit or loss for the year.
+Borrowing costs
+Borrowing costs that are directly attributable to the
+construction or production of a qualifying asset are
+capitalised as part of the cost of that asset. All other
+borrowing costs are expensed in the period in which
+they occur. Borrowing costs consist of interest and
+other costs that an entity incurs in connection with
+the borrowing of funds. Borrowing cost also includes
+exchange differences to the extent regarded as an
+adjustment to the borrowing costs. A qualifying asset
+is one that necessarily takes substantial period of time
+to get ready for its intended use.
+V.
+Scaling up Specialty. Leading with Care.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+S.
+150
+Income tax
+Income tax expense consists of current and deferred
+tax. Income tax expense is recognised in profit or
+loss except to the extent that it relates to items
+recognised in OCI or directly in equity, in which
+case it is recognised in OCI or directly in equity
+respectively. Current tax is the expected tax payable
+on the taxable profit for the year, using tax rates
+enacted or substantively enacted by the end of the
+reporting period, and any adjustment to tax payable in
+respect of previous years. Current tax assets and tax
+liabilities are offset where the Company has a legally
+enforceable right to offset and intends either to settle
+on a net basis, or to realise the asset and settle the
+liability simultaneously.
+149
+230.5
+49,909.3
+1,728.9
+7,197.7
+Disposals
+As at March 31, 2022
+3,404.1
+(54.5)
+84,853.9
+(54.5)
+1,208.0
+89,466.0
+Accumulated amortisation and impairment
+As at March 31, 2020
+1,156.2
+6,124.8
+7,281.0
+Taken over on merger
+20,237.4
+20,237.4
+Foreign currency translation difference
+(703.8)
+(703.8)
+Amortisation expense
+408.2
+6,752.7
+7,160.9
+Disposals
+(464.3)
+(0.0)
+(464.3)
+Scaling up Specialty. Leading with Care.
+153
+6,529.1
+668.6
+Additions
+1,041.8
+Product
+related
+intangibles
+Goodwill
+* in Million
+Total
+At cost or deemed cost
+As at March 31, 2020
+2,169.5
+7,087.8
+1,208.0
+10,465.3
+Taken over on merger
+71,661.8
+71,661.8
+Foreign currency translation difference
+(2,177.1)
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+(2,177.1)
+1,037.1
+937.8
+1,974.9
+Disposals
+(471.1)
+(172.8)
+(643.9)
+As at March 31, 2021
+2,735.5
+77,337.5
+1,208.0
+81,281.0
+Foreign currency translation difference
+1,041.8
+Additions
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+As at March 31, 2021
+Unquoted (At cost less impairment in value of investments, if any)
+Sun Pharmaceutical Industries, Inc.
+154
+As at March 31, 2022
+Quantity
+* in Million
+As at March 31, 2021
+Quantity
+* in Million
+Common shares of no par value
+8,387,666
+304.2
+8,387,666
+304.2
+Sun Farmaceutica do Brasil Ltda
+Quota of Capital Stock of Real 1 each fully paid
+Equity instruments
+4,019
+4,019
+18.3
+Sun Pharma De Mexico, S.A. DE C.V.
+Common Shares of no Face Value
+31.6
+Share application money
+36.5
+434,469
+36.5
+434,469
+Ordinary Shares of 100 Takas each fully paid
+Sun Pharmaceutical (Bangladesh) Limited
+3.3
+750
+18.3
+Computer
+Software
+NOTE : 5 INVESTMENTS IN THE NATURE OF EQUITY IN SUBSIDIARIES (NON-CURRENT)
+(i) The aggregate amortisation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.
+(ii) Refer Note 54 (1)
+Foreign currency translation difference
+Amortisation expense
+Disposals
+As at March 31, 2022
+Net book value
+As at March 31, 2021
+As at March 31, 2022
+Footnotes
+Computer
+Software
+Product
+related
+Goodwill
+* in Million
+Total
+intangibles
+1,100.1
+(iii) The recoverable amount of Goodwill have been determined based on value in use calculations which uses cash flow projections covering
+generally a period of five years which are based on key assumptions such as margins, expected growth rates based on past experience and
+Management's expectations/ extrapolation of normal increase/ steady terminal growth rate and appropriate discount rates that reflects
+current market assessments of time value of money. The management believes that any reasonable possible change in key assumptions on
+which recoverable amount is based is not expected to cause the aggregate carrying amount to exceed the aggregate recoverable amount of
+the cash generating unit.
+32,411.1
+410.6
+7,752.0
+33,511.2
+405.8
+8,162.6
+(45.7)
+1,510.7
+40,523.2
+(45.7)
+42,033.9
+1,635.4
+1,893.4
+44,926.4
+44,330.7
+1,208.0
+1,208.0
+47,769.8
+47,432.1
+405.8
+2,310.6
+750
+168.2
+855,199,716
+Shares of USD 1 each fully paid
+Sun Pharma Holdings
+0.1
+10,000
+0.1
+10,000
+Shares of 10 each fully paid
+as Softdeal Trading Company Private Limited)
+Softdeal Pharmaceuticals Private Limited (formerly known
+163.6
+(163.6)
+16,360,000
+163.6
+(163.6)
+16,360,000
+Less: Impairment in value of investment [Refer Note 54
+(12)]
+Less: Impairment in value of investment
+0.1
+10,000
+0.1
+10,000
+0.1
+10,000
+0.1
+10,000
+Skisen Labs Private Limited
+Shares of 10 each fully paid
+Realstone Multitrade Private Limited
+Shares of 10 each fully paid
+Neetnav Real Estate Private Limited
+Shares of 10 each fully paid
+Shares of 10 each fully paid
+0.1
+54,031.5
+(31,590.0)
+54,031.5
+(31,590.0)
+Ordinary Shares of KES 100 each fully paid
+Sun Pharma East Africa Ltd
+0.0
+3
+Ordinary Shares of Baht 100 each fully paid Nil
+(March 31, 2021 : * 754)
+Ranbaxy (Thailand) Company Ltd.
+14.7
+86,534
+Ordinary Shares of Peso 100 each fully paid
+Sun Pharma Phillipines Inc.
+545.0
+1,200
+553.0
+1,200
+855,199,716
+Ordinary Shares of JPY 50,000 each fully paid
+37.0
+3,189,248
+37.0
+3,189,248
+Ordinary Shares of RM 1 each fully paid
+Ranbaxy Malaysia Sdn. Bhd.
+39,877.3
+5,473,340
+39,877.3
+5,473,340
+Ordinary class A shares of Euro 100 each fully paid
+Sun Pharma (Netherlands) B.V.
+22,441.5
+22,441.5
+Sun Pharma Japan Ltd
+3.3
+10,000
+10,000
+0.1
+700,000
+Shares of 10 each fully paid
+5,250,000 Rouble (March 31, 2021: 5,250,000 Rouble)
+8.8
+1
+8.8
+1
+0.2
+100
+Green Eco Development Centre Limited
+Par value rouble stock fully paid
+OOO "Sun Pharmaceutical Industries" Limited
+Nominative and free Shares of 500 Mexican Pesos each
+fully paid
+SPIL DE Mexico S.A. DE CV
+[* Nil (March 31, 2021: 21,734)]
+0.0
+149
+Ordinary Shares of Soles 10 each fully paid
+Sun Pharmaceutical Peru S.A.C.
+31.6
+451.7
+312.8
+230.7
+1,817.6
+2,361.1
+413.5
+700,000
+7.0
+7.0
+Statutory Reports
+Foundation for Disease Elimination and Control of India
+0.1
+10,000
+0.1
+10,000
+Shares of 10 each fully paid
+Faststone Mercantile Company Private Limited
+1.5
+40,050,000
+1.5
+40,050,000
+Corporate Overview
+0.5
+1,000
+Shares of 10 each fully paid
+As at March 31, 2021
+Quantity
+0.5
+1,000
+* in Million
+Quantity
+As at March 31, 2022
+Sun Pharma Laboratories Limited
+Financial Statements
+Standalone Accounts
+* in Million
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Shares of Bolivars (Bs.F.) 100 each, Bolivars (Bs.F.) 50
+per share paid
+Sun Pharma De Venezuela, C.A.
+(2,119.5)
+4,068.5
+4,406.0
+371.8
+(3,095.1)
+131.7
+(269.9)
+NOTE : 29 REVENUE FROM OPERATIONS
+Deposit accounts
+(15.3)
+16,213.7
+11,246.3
+11,041.9
+7,261.5
+5,213.9
+970.8
+1,378.8
+420.1
+385.9
+34,037.4
+34,234.2
+Footnotes
+(i) Inventory write downs are accounted considering the nature of inventory, estimated shelf life, planned product discontinuances, price
+changes, ageing of inventory and introduction of competitive new products as well as the provisioning policy. Write downs of inventories
+amounted to 8,461.7 Million (March 31, 2021: 8,433.6 Million). The changes in write downs are recognised as an expense in the statement
+of profit and loss. The inventories with overseas contract manufacturers are stated as per the quantitative confirmations received from the
+respective parties.
+(ii) For details of inventories pledged as security refer Note 48.
+14,138.7
+(iii) The cost of inventories recognised as an expense is disclosed in Notes 31, 32 and 35 and as purchases of stock-in-trade in the statement of
+profit and loss.
+Mutual funds
+As at March 31, 2022
+Quantity
+* in Million
+As at March 31, 2021
+Quantity
+* in Million
+Unquoted (Fair value through profit or loss) *
+BNP Paribas Mutual fund - BNP Paribas Liquid Fund -
+Direct Plan - Growth
+97,894
+310.0
+Nippon India Liquid Fund - Direct Plan Growth Plan -
+Growth Option
+370,662
+1,930.4
+1,930.4
+310.0
+NOTE : 13 INVESTMENTS (CURRENT)
+16,016.8
+196.9
+552.1
+13,586.6
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone Accounts
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 11 OTHER ASSETS (NON-CURRENT)
+Capital advances
+Prepaid expenses
+Balances with government authorities *
+* includes amount paid under protest
+NOTE: 12 INVENTORIES
+Lower of cost and net realisable value
+Raw materials and packing materials
+Goods in transit
+Work-in-progress
+Finished goods
+Stock-in-trade
+As at
+March 31, 2021
+* in Million
+March 31, 2022
+As at
+3,913.9
+2,350.1
+* Mutual funds have been fair valued at closing net asset value (NAV).
+1,669.8
+13.1
+1,901.2
+2,228.5
+435.8
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2022
+Stores and spares
+15.6
+91.0
+Scaling up Specialty. Leading with Care.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+67,103.9
+(1,341.7)
+(1,251.5)
+42,451.6
+65,852.4
+* in Million
+As at
+March 31, 2022
+As at
+March 31, 2021
+4,186.7
+8.6
+4,195.3
+3,503.3
+7.3
+3,510.6
+* in Million
+As at
+March 31, 2022
+As at
+March 31, 2021
+1,043.5
+43,793.3
+104.2
+6.6
+12.5
+1,154.3
+99.2
+* in Million
+As at
+March 31, 2022
+As at
+March 31, 2021
+0.7
+0.7
+90.3
+156.6
+15.3
+15.3
+(15.3)
+86.7
+1,251.5
+1,341.7
+65,852.4
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 14 TRADE RECEIVABLES
+Unsecured
+Considered good
+Credit impaired
+Less: Allowance for credit impaired
+NOTE: 15 CASH AND CASH EQUIVALENTS
+Balances with banks
+In current accounts
+Cash on hand
+NOTE: 16 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 15 ABOVE
+# The tax rate used for reconciliation above is the corporate tax rate of 34.944% (March 31, 2021 : 34.944%) at which the Company is liable to pay
+tax on taxable income under the Indian Tax Law.
+Earmarked balances with banks
+Unpaid dividend accounts
+Balances held as margin money or security against guarantees and other commitments
+NOTE: 17 LOANS (CURRENT)
+42,451.6
+* in Million
+As at
+March 31, 2021
+March 31, 2022
+As at
+160
+* Loans have been granted for the purpose of their business.
+159
+Unsecured, considered good
+Loans to subsidiaries (Refer Note 49 and 50)
+Less: Allowance for doubtful loans (expected credit loss allowance)
+Credit impaired
+Unsecured, considered good
+Secured, considered good
+Loans to employees / others *
+*
+Pursuant to the Scheme of Amalgamation and Merger of Sun Pharma Global FZE, with the Company, as approved by the National Company
+Law Tribunal on August 31, 2021, Sun Pharma Global FZE, merged with the Company w.e.f. January 01, 2020. The cumulative tax impact of this
+merger has been given in the standalone financial statements for the year ended March 31, 2022. The Company has not created a deferred tax
+asset on the losses of the merged entity.
+168
+FOR THE YEAR ENDED MARCH 31, 2022
+* in Million
+As at
+March 31, 2021
+March 31, 2022
+As at
+Refer statement of changes in equity for detailed movement in above balances
+Effective portion of cash flow hedges
+Foreign currency translation reserve
+Debt instrument through OCI
+Equity instrument through OCI
+B) Items of other comprehensive income (OCI)
+Retained earnings
+General reserve
+Capital redemption reserve
+Amalgamation reserve
+Securities premium
+Capital reserve
+A) Reserves and Surplus
+NOTE : 21 OTHER EQUITY
+* in Million
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+22,258.5
+11,874.1
+43.8
+22,258.5
+11,874.1
+43.8
+7.5
+Capital redemption reserve - The Company has recognised capital redemption reserve on buyback of equity shares
+from its retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares
+bought back.
+Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.
+Securities premium - The amount received in excess of face value of the equity shares is recognised in securities premium.
+In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal
+value of share is accounted as securities premium. It is utilised in accordance with the provisions of the Companies
+Act, 2013.
+Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if
+any, is treated as capital reserve.
+Nature and purpose of each reserve
+266,985.4
+243,480.2
+21,721.0
+21,740.5
+471.9
+Financial Statements
+151.6
+21,543.5
+(958.1)
+104.4
+45.4
+245,264.4
+221,739.7
+159,645.5
+136,120.8
+51,435.0
+51,435.0
+7.5
+22,102.8
+General reserve: The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies
+Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
+Statutory Reports
+162
+0.0
+199,465
+Kumud S. Shanghvi
+Shanghvi are Trustees)
+Trust (Kumud S. Shanghvi and Dilip S.
+0.1
+1,276,774
+0.1
+1,276,774
+Shanghvi Family & Friends Benefit
+0.1
+2,822,427
+0.1
+2,822,427
+Vidhi D. Shanghvi
+0.1
+2,877,280
+0.1
+2,877,280
+Aalok D. Shanghvi
+0.4
+199,465
+0.0
+Flamboyawer Finance Private Limited
+20,865
+(iii) Rights, Preference and Restrictions attached to equity shares: The equity shares of the Company, having par value of 1 per share, rank pari
+passu in all respects including voting rights and entitlement to dividend.
+(ii) 7,500,000 (upto March 31, 2021: 7,500,000) equity shares of 1 each have been bought back during the period of five years immediately
+preceding the date at which the Balance Sheet is prepared. The shares bought back were cancelled.
+(i) Nil (upto March 31, 2021: 334,956,764) equity shares of 1 each have been allotted, pursuant to scheme of amalgamation, without payment
+being received in cash during the period of five years immediately preceding the date at which the Balance Sheet is prepared.
+Footnotes
+0.4
+10,400,850
+0.4
+10,400,850
+Unimed Investments Limited
+0.0
+Corporate Overview
+14,362
+14,362
+Gujarat Sun Pharmaceutical Industries
+Private Limited
+0.0
+15,479
+0.0
+15,479
+Sanghvi Properties Private Limited
+0.0
+20,865
+0.0
+0.0
+Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investment in
+equity instrument in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of
+equity instrument.
+Debt instrument through OCI - This represents the cumulative gain and loss arising on fair valuation of debt instruments
+measured through other comprehensive income. This will be reclassified to statement of profit or loss on derecognition of
+debt instrument.
+Foreign currency translation reserve - Exchange differences relating to the translation of the results and the net assets
+of the Company's foreign operations from their functional currencies to the Company's presentation currency (i.e ₹) are
+71.0
+Security deposits
+83.5
+100.9
+Unpaid dividends
+156.5
+Interest accrued
+* in Million
+As at
+March 31, 2021
+March 31, 2022
+As at
+NOTE : 26 OTHER FINANCIAL LIABILITIES (CURRENT)
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+18,364.5
+30.7
+14,006.4
+1,844.7
+2,513.4
+85.1
+Payables on purchase of property, plant and equipment and Other Intangible assets
+3,274.1
+1,050.7
+Others [Refer Note 51 and 54 (2)]
+Employee benefits
+NOTE : 28 PROVISIONS (CURRENT)
+Others
+Deferred revenue (Refer Note 53)
+Advance from customers (Refer Note 53)
+Statutory remittances
+NOTE : 27 OTHER LIABILITIES (CURRENT)
+22,294.8
+40,678.1
+30.7
+14.7
+Derivatives designated as hedge
+22.1
+37.8
+Derivatives not designated as hedge
+2,134.0
+2,742.5
+Payables to employee
+18,748.2
+34,362.6
+Product settlement, claims, recall charges and trade commitments
+89.2
+As at
+March 31, 2021
+March 31, 2022
+As at
+Other loans
+Unsecured
+From Banks
+Loans repayable on demand
+NOTE : 25 BORROWINGS (CURRENT)
+Others (Refer Note 51)
+Employee benefits
+NOTE : 24 PROVISIONS (NON-CURRENT)
+Deferred revenue (Refer Note 53)
+NOTE : 23 OTHER LIABILITIES (NON-CURRENT)
+Commercial paper (Unsecured)
+Loans from subsidiaries (Unsecured) (Refer Note 48 and 49)
+Term loans from banks (Refer Note 48)
+Term loan from department of biotechnology (Refer Note 48)
+Secured
+NOTE : 22 BORROWINGS (NON-CURRENT)
+Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gains
+or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges.
+The cumulative gain or loss recognised and accumulated under the cash flow hedge reserve will be reclassified to profit
+or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial
+hedged item.
+recognised directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange
+difference in the foreign currency translation reserve are reclassified to statement of profit or loss account on the disposal
+of the foreign operation.
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+163
+Scaling up Specialty. Leading with Care.
+Unsecured
+8,840,280
+Current maturities of long-term debt (Refer Note 48)
+As at
+March 31, 2022
+* in Million
+6,235.8
+3,976.3
+4,289.8
+1,894.4
+1,946.0
+2,081.9
+As at
+March 31, 2021
+* in Million
+March 31, 2022
+164
+As at
+7,185.5
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2022
+6,187.5
+6,187.5
+53,000.2
+51,120.3
+48,656.4
+48,656.4
+1,825.8
+54.1
+* in Million
+As at
+March 31, 2021
+7,185.5
+Revenue from contracts with customers (Refer Note 53)
+Other operating revenues
+0.4
+Vibha D. Shanghvi
+Scaling up Specialty. Leading with Care.
+Equity Shares of ₹ 1 each
+Issued, subscribed and fully paid up
+Cumulative preference shares of 100 each
+Equity shares of 1 each
+Authorised
+NOTE : 20 EQUITY SHARE CAPITAL
+# includes government grant from Biotechnology Industry Research Assistance Council (BIRAC).
+* includes balances of goods and service tax
+Other assets #
+Balances with government authorities *
+Less: Allowance for doubtful
+Considered doubtful
+Considered good
+* in Million
+Prepaid expenses
+Export incentives receivable
+NOTE: 19 OTHER ASSETS (CURRENT)
+* The Company is carrying an allowance of 500.0 Million (March 31, 2021 : 500 Million) against Other receivables based on assessment
+regarding its future recoverability.
+5,266.0
+724.0
+* in Million
+As at
+March 31, 2022
+As at
+March 31, 2021
+647.5
+Number of shares
+* in Million
+Number of shares
+As at March 31, 2021
+As at March 31, 2022
+10,557.3
+9,155.7
+141.3
+112.5
+4,116.6
+4,021.8
+4,897.1
+2,123.9
+(693.7)
+(718.2)
+693.7
+718.2
+3,121.0
+2,123.9
+1,533.3
+1,374.7
+1,645.1
+3,121.0
+* in Million
+306.0
+447.3
+Less Allowance for doubtful
+Other receivables
+Security deposits (unsecured, considered good)
+Interest accrued (unsecured, considered good)
+NOTE : 18 OTHER FINANCIAL ASSETS (CURRENT)
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+7,471.1
+91.0
+7,313.8
+157.3
+1,276.5
+141,160.5
+Scaling up Specialty. Leading with Care.
+165
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Other receivables - from related parties (Refer Note 49)
+Refund due from government authorities
+Unbilled revenue (Refer Note 53)
+Derivatives not designated as hedges
+336.5
+151.6
+2,651.7
+1,318.0
+17.4
+445.9
+1,364.6
+1,175.3
+Year ended
+March 31, 2021
+139,884.0
+71.1
+(500.0)
+1,864.6
+1,675.3
+47.1
+91.9
+53.6
+85.8
+* in Million
+As at
+March 31, 2021
+March 31, 2022
+As at
+Derivatives designated as hedges
+(500.0)
+5,990,000,000
+100,000
+5,990.0
+10.0
+6,000.0
+5,990,000,000
+2,071.9
+1,644.3
+1,640.4
+4.1
+7,463.1
+6,333.9
+4.1
+As at
+March 31, 2022
+1,401.7
+24,223.8
+* in Million
+As at
+March 31, 2021
+894.5
+11,152.1
+25,625.5
+12,046.6
+Year ended
+March 31, 2022
+155,185.0
+674.8
+Shanghvi Finance Private Limited
+9.6
+230,285,690
+9.6
+230,285,690
+3,480.6
+2,617.5
+2,334.1
+March 31, 2021
+(0.2)
+1.2
+28,830,352
+1.2
+28,830,352
+Raksha S. Valia
+0.6
+14,345,019
+0.6
+14,345,019
+Dilip Shantilal Shanghvi
+Sudhir V. Valia
+40,153,960
+1.7
+40,153,960
+Aditya Medisales Limited
+40.3
+967,051,732
+40.3
+967,051,732
+As at
+March 31, 2022
+As at
+1.7
+155,859.8
+% of holding
+Number of
+shares
+As at March 31, 2021
+Number of shares
+* in Million
+As at March 31, 2022
+Number of shares
+Equity shares held by promoters /
+members of promoter group / person
+acting in concert
+Life Insurance Corporation Of India and its various funds
+Dilip Shantilal Shanghvi
+5 percent equity shares in the Company are as follows:
+Shanghvi Finance Private Limited
+Equity shares held by each shareholder holding more than
+Closing balance
+Opening balance
+* in Million
+Reconciliation of the number of equity shares and amount
+outstanding at the beginning and at the end of reporting
+period
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+161
+2,399.3
+2,399.3
+2,399.3 2,399,334,970
+2,399.3 2,399,334,970
+2,399,334,970
+2,399,334,970
+6,000.0
+5,990.0
+10.0
+100,000
+FOR THE YEAR ENDED MARCH 31, 2022
+8,840,280
+2,399,334,970
+2,399,334,970
+2,399,334,970
+2,399,334,970
+% Change
+during the year
+% of holding
+Number of
+shares
+As at March 31, 2021
+As at March 31, 2022
+6.8
+9.6
+40.3
+162,207,571
+5.8
+2,399.3
+2,399.3
+230,285,690
+967,051,732
+40.3
+967,051,732
+230,285,690
+139,828,706
+% of holding
+Number of shares
+% of holding
+Number of shares
+As at March 31, 2021
+As at March 31, 2022
+2,399.3
+2,399.3
+9.6
+% Change
+during the year
+Advances for supply of goods and services
+4,223.3
+3,239.4
+49,318.2
+Scaling up Specialty. Leading with Care.
+167
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 36 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE STATEMENT OF PROFIT AND LOSS
+Salaries, wages and bonus
+Contribution to provident and other funds
+Staff welfare expenses
+Consumption of materials, stores and spare parts
+Power and fuel
+2,281.0
+52,662.5
+Rent
+Insurance
+Repairs and maintenance
+Printing and stationery
+Travelling and conveyance
+Communication
+Professional, legal and consultancy
+Miscellaneous expenses
+Year ended
+March 31, 2022
+3,618.5
+* in Million
+Year ended
+March 31, 2021
+3,391.4
+230.6
+240.9
+18.9
+4,124.0
+11.7
+Rates and taxes
+Miscellaneous expenses
+23.1
+67.1
+466.0
+2,459.4
+2,396.2
+194.0
+204.4
+1,032.7
+757.6
+3,142.5
+2,990.1
+261.0
+263.2
+263.2
+244.4
+9,787.4
+10,841.5
+158.4
+152.6
+99.7
+Payments to auditor (net of input credit, wherever applicable)
+For audit
+29.6
+29.0
+For other services
+13.2
+12.5
+Reimbursement of expenses
+0.7
+0.8
+Impairment of property, plant and equipment, other intangible assets and intangible assets under
+development
+2,531.5
+232.5
+319.1
+20.6
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+(including impact of merger)
+Effect of reversal of Minimum Alternate Tax (MAT) credit entitlement
+Others
+Income tax expense recognised in statement of profit and loss
+Year ended
+March 31, 2022
+* in Million
+Year ended
+March 31, 2021
+3,068.6
+34.944%
+8,555.7
+34.944%
+1,072.3
+2,989.7
+972.7
+Withholding tax in respect of income earned outside India
+35.3
+99.9
+(455.3)
+128.9
+37.1
+526.2
+224.6
+1.5
+2.6
+March 31, 2021
+* in Million
+Year ended
+Year ended
+March 31, 2022
+Subsidiary
+Dividend income on investments
+192.3
+Effect of expenses that are not deductible
+Income tax calculated at income tax rate
+Income tax rate (%) applicable to the Company #
+1.1
+769.2
+540.7
+73.3
+52.6
+429.9
+423.4
+11.0
+8.3
+42.3
+30.5
+27.2
+22.5
+5,931.0
+7,230.7
+489.2
+374.7
+16,104.8
+15,141.0
+Less:
+Receipts from research activities
+Miscellaneous income
+533.4
+41.7
+607.8
+15,529.7
+13.8
+14,519.4
+NOTE: 37 TAX RECONCILIATION
+Reconciliation of tax expense
+Profit before tax
+281.0
+117.9 Million)]
+765.2
+14,721.9
+802.3
+620.4
+9,579.2
+154.5
+1,920.7
+NOTE: 31 COST OF MATERIALS CONSUMED
+Raw materials and packing materials
+Inventories at the beginning of the year
+Purchases during the year
+Foreign currency translation difference
+Inventories at the end of the year
+Year ended
+March 31, 2022
+* in Million
+Year ended
+March 31, 2021
+Miscellaneous income
+16,213.7
+43,752.4
+22.3
+(14,138.7)
+45,849.7
+43,964.4
+(53.4)
+(16,213.7)
+40,829.1
+NOTE: 32 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+Inventories at the beginning of the year
+Foreign currency translation difference
+Inventories at the end of the year
+166
+Year ended
+March 31, 2022
+17,634.6
+12.2
+(19,478.6)
+* in Million
+Year ended
+March 31, 2021
+15,869.1
+(30.9)
+(17,634.6)
+(1,831.8)
+(1,796.4)
+13,131.8
+86.6
+1,646.8
+39.7
+119.9
+4,390.2
+825.8
+135.4
+383.4
+Net gain/(loss) arising on financial assets measured at fair value through profit or loss
+0.5
+71.7
+Net gain on sale of financial assets measured at fair value through profit or loss
+65.0
+107.3
+Net gain/(loss) on sale of financial assets measured at fair value through other comprehensive income
+Gain on sale of investment in subsidiaries
+57.7
+0.4
+2,075.7
+Profit on sale / write off of property, plant and equipment and intangible assets, net
+367.1
+Sundry balances written back, net
+48.8
+75.6
+Gain on derecognition of Right-of-use assets
+7.4
+103.6
+Insurance claims
+Lease rental and hire charges
+Settlement income
+115.2
+72.1
+49.0
+Corporate Overview
+17,179.0
+Statutory Reports
+Standalone Accounts
+* in Million
+Year ended
+March 31, 2021
+Consumption of materials, stores and spare parts
+Conversion and other manufacturing charges
+Power and fuel
+Rent
+Rates and taxes
+Insurance
+Selling, promotion and distribution
+Commission on sales
+Repairs and maintenance
+Printing and stationery
+Travelling and conveyance
+Freight outward and handling charges
+Year ended
+March 31, 2022
+Communication
+Professional, legal and consultancy
+Donations
+Loss on sale / write off of property, plant and equipment and intangible assets, net
+5,431.5
+3,966.6
+2,752.3
+2,258.4
+47.8
+3,841.6
+39.5
+38.5
+2,311.9
+2,005.5
+Provision / write off / (reversal) for doubtful trade receivables / advances
+2,675.2
+(400.1)
+31.9
+3,881.0
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 33 EMPLOYEE BENEFITS EXPENSE
+Salaries, wages and bonus
+Contribution to provident and other funds
+Staff welfare expenses
+* includes gratuity expense of 338.5 Million (March 31, 2021 : 316.2 Million)
+NOTE: 34 FINANCE COSTS
+Interest expense for financial liabilities carried at amortised cost
+Interest expense others
+Exchange differences regarded as an adjustment to borrowing costs
+NOTE: 35 OTHER EXPENSES
+Year ended
+March 31, 2022
+18,265.7
+* in Million
+Year ended
+March 31, 2021
+16,580.3
+1,221.8
+520.3
+20,007.8
+1,131.1
+348.4
+18,059.8
+Year ended
+March 31, 2022
+3,409.7
+* in Million
+Year ended
+March 31, 2021
+2,866.2
+209.1
+439.4
+Financial Statements
+4,078.1
+49.3
+Interest income on :
+Bank deposits at amortised cost
+Loans at amortised cost
+Investments in debt instruments at fair value through other comprehensive income
+Other financial assets carried at amortised cost
+Others [includes interest on income tax refund of 4,055.8 Million
+(March 31, 2021:
+NOTE: 30 OTHER INCOME
+Investments in securities
+Borrowings
+Trade payables
+Payables to employee
+Security deposits
+Payables on purchase of property, plant and equipment and other
+intangible assets
+Product settlement, claims, recall charges and trade commitments
+Lease liabilities
+Derivatives designated as hedges
+Derivatives not designated as hedges
+* in Million
+As at March 31, 2022
+Fair value through
+profit or loss
+Fair value
+through other
+comprehensive
+income
+Unpaid dividends
+Financial liabilities
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone Accounts
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 40 CATEGORIES OF FINANCIAL INSTRUMENTS
+Financial assets
+Investments
+Equity instruments
+Equity instruments / mutual fund - unquoted
+Loans to subsidiaries
+Loans to employees / others
+Security deposits
+Unbilled revenue
+Trade receivables
+Cash and cash equivalents
+Bank balances other than cash and cash equivalents
+Interest accrued
+Refund due from government authorities
+Other receivables
+Amortised cost
+148.7
+42,451.6
+36,559.7
+97.6
+37.8
+37.8
+89.2
+118,395.9
+Scaling up Specialty. Leading with Care.
+171
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Financial assets
+Investments
+Equity instruments / securities - quoted
+Equity instruments / mutual fund - unquoted
+Loans to subsidiaries
+Loans to employees / others
+Security deposits
+Unbilled revenue
+89.2
+1,935.9
+2,053.3
+3,274.1
+515.7
+345.3
+14,903.2
+4,195.3
+1,154.3
+119.6
+1,318.0
+1,621.2
+306.0
+447.3
+2,383.2
+454.7
+88,378.3
+48,687.1
+27,104.4
+2,742.5
+100.9
+71.0
+34,362.6
+383.8
+16,316.7
+Year ended
+March 31, 2021
+Financial Statements
+Statutory Reports
+Corporate Overview
+ESIC contribution on account of applicability
+130.5
+130.5
+C
+Standalone Accounts
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit enjoyed
+by the Company
+3,488.2
+d
+e
+Other matters - state electricity board, Punjab Land Preservation Act related matters etc.
+Note: includes interest till the date of demand, wherever applicable
+Legal proceedings
+90.6
+90.2
+The Company and/or its subsidiaries are involved in various legal proceedings including product
+liability, contracts, employment claims, antitrust and other legal and regulatory matters relating
+to the conduct of its business. Some of the key matters are discussed below. Most of the legal
+proceedings involve complex issues, which are specific to the case and do not have precedents,
+and, hence, for a majority of these claims, it is not possible to make a reasonable estimate of the
+expected financial effect, if any, that will result from ultimate resolution of the proceedings. This
+is due to a number of factors, including: the stage of the proceedings and the overall length and
+the discovery process; the entitlement of the parties to an action to appeal a decision; the extent
+of the claims, including the size of any potential class, particularly when damages are not specified
+or are indeterminate; the possible need for further legal proceedings to establish the appropriate
+amount of damages, if any; the settlement posture of the other parties to the litigation, and any
+other factors that may have a material effect on the litigation. The Company makes its assessment
+of likely outcome based on the views of internal legal counsel and in consultation with external legal
+counsel representing the Company. The Company also believes that disclosure of the amount sought
+by plaintiffs would not be meaningful because historical evidence indicates that the amounts settled
+(if any) are significantly different than those claimed by plaintiffs. Some of the legal claims against
+the Company, if decided against the Company or settled by the Company, may result in significant
+impact on its results of operations.
+3,474.2
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 38 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
+Goods and service tax / Excise duty / service tax on account of valuation / cenvat credit
+148.4
+119.9
+Sales tax on account of rebate / classification
+24,277.6
+4,125.5
+Income tax on account of disallowances / additions (Company appeals) *
+Liabilities disputed - appeals filed with respect to :
+b
+556.5
+567.6
+Claims against the Company not acknowledged as debts
+a
+Contingent liabilities
+i
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2022
+Antitrust - Lipitor:
+The Company and certain of its subsidiaries are defendants in a number of putative class action
+lawsuits and individual actions brought by purchasers and payors in the U.S. alleging that the Company
+and certain of its subsidiaries violated antitrust laws in connection with a 2008 patent settlement
+agreement with Pfizer concerning Atorvastatin. The cases have been transferred to the U.S. District
+Court for the District of New Jersey for coordinated proceedings. Discovery commenced in January
+2020, but was stayed in March 2020 pending mediation. Pursuant to the mediator's order of June 03,
+2021, briefing on certain issues was completed by March 2022, and argument on these issues will
+likely occur in subsequent months.
+Product Liability - Ranitidine/Zantac MDL:
+In June 2020, the Company and certain of its subsidiaries were named as defendants in a complaint
+filed in the Zantac/Ranitidine Multi-District Litigation ("MDL") consolidated in the U.S. District
+Court for the Southern District of Florida. The lawsuits name over 100 defendants, including brand
+manufacturers, generic manufacturers, repackagers, distributors, and retailers, involving allegations
+of injury caused by nitrosamine impurities. Discovery in the MDL is ongoing. On July 8, 2021, the
+District Court granted the generic Defendants' motion to dismiss, the effect of which was to dismiss
+the Company and its affiliates with prejudice. That decision is up on appeal. In addition to the federal
+court proceedings, two of the Company's affiliates also have been named as defendants in state court
+actions pending in Illinois, Pennsylvania, New York, and California. Finally, certain of the Company's
+subsidiaries are named in three putative class actions pending in three Canadian provinces. The action
+pending in British Columbia is taking the lead and is in the class certification stage.
+C
+Letters of credit for imports
+325.5
+0.5
+513.3
+*
+iii
+The Company is committed to pay milestone payments and royalty on certain contracts, however,
+obligation to pay is contingent upon fulfilment of contractual obligation by parties to the contract.
+Guarantees given by the bankers on behalf of the Company
+1,181.5
+1,233.8
+NOTE: 39 RESEARCH AND DEVELOPMENT EXPENDITURE
+Revenue, net (excluding depreciation) (Refer Note 36)
+Capital
+Total
+170
+Year ended
+March 31, 2022
+15,529.7
+787.0
+Trade receivables
+* in Million
+0.5
+14,519.4
+22,733.2
+Estimated amount of contracts remaining to be executed on capital account [net of advances] *
+Uncalled liability on partly paid investments
+Scaling up Specialty. Leading with Care.
+169
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Fine imposed for anti-competitive settlement agreement by European Commission:
+On March 25, 2021, the Court of Justice of the European Union ("CJEU") issued a final judgment
+and upheld the European Commission's ("EC") decision dated June 19, 2013 that a settlement
+agreement between Ranbaxy (U.K.) Limited and Ranbaxy Laboratories Limited (together "Ranbaxy")
+with Lundbeck was anti-competitive. Ranbaxy had made a provisional payment of the fine of
+Euro 10.3 Million on September 20, 2013. Since there are no further rights of appeal, this amount
+of 895.6 Million (inclusive of legal charges) was provided in the standalone financial statements
+for the year ended March 31, 2021.
+The Company may now be subject to "follow-on" claims in national courts of some countries.
+However, the Company has not yet been served with a claim detailing the alleged causation and
+quantum of any purported damages. Accordingly, the Company is currently unable to estimate the
+potential liability which may arise on account of follow-on claims. The Company also believes, based
+on its internal assessment and that of its independent legal counsel, that it has favourable legal
+arguments in terms of defending any potential damages claim.
+Note:
+Future cash outflows in respect of the above matters are determinable only on receipt of judgements
+/ decisions pending at various forums / authorities.
+* Income tax matters where department has preferred an appeal against favourable order received by
+the Company amounted to 22,253.0 Million (March 31, 2021: 21,808.4 Million). These matters are
+sub-judice in various forums and pertains to various financial years.
+As at
+March 31, 2022
+* in Million
+As at
+March 31, 2021
+ii
+Commitments
+a
+b
+27,187.1
+Investments in equity - unquoted
+Cash and cash equivalents
+Interest accrued
+Dividend on equity shares
+(ii) Dividend on equity shares paid during the year
+Net debt to total equity ratio
+Total equity, including reserves
+Debt (includes borrowings and lease liabilities)
+Debt equity ratio
+(i)
+The Company monitors capital on the basis of the carrying amount of debt as presented on the face of the financial
+statements. The Company's objective for capital management is to maintain an optimum overall financial structure.
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+5.5
+5.5
+1.7
+3.8
+5.5
+March 31, 2021
+Year ended
+Year ended
+March 31, 2022
+Final dividend for the year ended March 31, 2021 of 2 (year ended March 31, 2020 : 1) per
+fully paid share
+As at
+March 31, 2022
+50,740.4
+245,879.5
+0.21
+Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
+its contractual obligations, and arises principally from the Company's receivables from customers, loans and investments.
+Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness
+of counterparty to which the Company grants credit terms in the normal course of business.
+Credit risk
+The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
+Company's risk management assessment and policies and processes are established to identify and analyze the risks faced
+by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk
+assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the
+Company's activities.
+NOTE: 43 FINANCIAL RISK MANAGEMENT
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general
+meeting and hence not recognised as liability.
+The Board of Directors at it's meeting held on May 30, 2022 have recommended payment of
+final dividend of 3 per share of face value of ₹ 1 each for the year ended March 31, 2022.
+The same amounts to ₹7,197.9 Million.
+Dividends not recognised at the end of the reporting period
+13,191.3
+* in Million
+16,790.5
+2,399.3
+4,798.6
+March 31, 2021
+Year ended
+Year ended
+March 31, 2022
+* in Million
+0.27
+* in Million
+As at
+March 31, 2021
+73,581.2
+269,384.7
+Interim dividend for the year ended March 31, 2022 of 7 (year ended March 31, 2021 : * 5.5)
+per fully paid share
+Investments in equity - quoted #
+The Company's capital management objectives are:
+NOTE: 42 CAPITAL MANAGEMENT
+4,463.2
+724.0
+71.1
+2,650.8
+310.0
+5.5
+1,502.4
+Level 3
+Level 2
+795.1
+Level 1
+in Million
+127.0
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Financial liabilities
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Mutual funds
+As at March 31, 2021
+174
+5.5
+14.7
+Balance at the end of the year
+Purchases
+Balance at the beginning of the year
+Unlisted shares valued at fair value
+Reconciliation of Level 3 fair value measurements
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+22.1
+173
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost
+approximates their fair value.
+There were no transfers between Level 1 and 2 in the periods.
+# These investments in equity instruments are not held for trading. Upon the application of Ind AS 109, the Company has
+chosen to designate these investments in equity instruments at fair value through other comprehensive income.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair
+value. The cost of unquoted investments approximates the fair value because there is wide range of possible fair value
+measurements and the costs represents estimate of fair value within that range.
+Level 3 inputs are unobservable inputs for the asset or liability.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
+either directly or indirectly.
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
+the measurement date.
+36.8
+Scaling up Specialty. Leading with Care.
+Bank balances other than cash and cash equivalents
+Corporate Overview
+Financial Statements
+4,153.2
+315.5
+15,834.8
+164.0
+492.6
+642.0
+65,852.4
+3,510.6
+99.2
+53.6
+2,651.7
+1,382.0
+724.0
+71.1
+386.6
+4,877.2
+90,682.9
+71,364.7
+Amortised cost
+Fair value
+through other
+comprehensive
+income
+Fair value through
+profit or loss
+As at March 31, 2021
+Refund due from government authorities
+Other receivables
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Financial liabilities
+Borrowings
+Interest accrued
+Trade payables
+156.5
+40,285.4
+Payables to employee
+Unpaid dividends
+Security deposits
+Payables on purchase of property, plant and equipment and other
+intangible assets
+Product settlement, claims, recall charges and trade commitments
+Lease liabilities
+Derivative designated as hedge
+Derivatives not designated as hedges
+in Million
+172
+2,134.0
+83.5
+85.1
+148.7
+Investments in equity - unquoted
+Mutual funds
+Derivatives not designated as hedges
+Derivatives designated as hedges
+5.5
+1,930.4
+447.3
+306.0
+Investments in equity - quoted #
+2,079.1
+5.5
+Financial liabilities
+Derivatives not designated as hedges
+Derivatives designated as hedges
+37.8
+89.2
+Financial assets and liabilities measured at fair value on a recurring basis at the
+end of each reporting period
+Financial assets
+753.3
+Statutory Reports
+Financial assets
+Level 3
+1,050.7
+18,748.2
+2,216.5
+14.7
+22.1
+22.1
+14.7
+136,124.6
+Financial assets and liabilities measured at fair value on a recurring basis at the
+end of each reporting period
+Corporate Overview
+Financial Statements
+Standalone Accounts
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 41 FAIR VALUE HIERARCHY
+* in Million
+Level 1
+As at March 31, 2022
+Level 2
+Statutory Reports
+- to ensure the Company's ability to continue as a going concern; and
+11,670.3
+Standalone Accounts
+43,345.5
+1,415.1
+Cash and cash equivalents
+Trade receivables
+Financial assets
+Total
+Others
+As at March 31, 2021
+Russian South African
+Rouble
+Rand
+Euro
+2,851.1
+980.0
+US Dollar
+64,285.1
+445.9
+174.3
+2.2
+1,507.2
+15,917.5
+15,917.5
+62,155.5
+Provisions [Refer Note 54(2)]
+* in Million
+3,627.3
+31.9
+2,894.6
+6,441.4
+601.2
+Loans from subsidiaries
+3,657.4
+3,657.4
+Borrowings
+Financial liabilities
+69,805.0
+7,042.6
+2,894.6
+3,659.2
+3,831.1
+52,377.5
+217.7
+217.7
+Other receivables
+7,399.2
+7,399.2
+Loans to subsidiaries
+3,028.2
+59,159.9
+and trade commitments
+6,693.0
+34,362.6
+33,493.1
+Interest accrued
+37,385.3
+3,410.8
+35,999.1
+35,999.1
+Loans to subsidiaries
+6,974.3
+17.2
+1,625.1
+3,959.3
+117.3
+1,319.4
+82.4
+1,956.9
+2,273.7
+22,552.9
+Trade receivables
+Financial assets
+Total
+Others
+South African
+Rand
+Russian
+Rouble
+Cash and cash equivalents
+82.4
+Other receivables - from related party
+60,591.3
+Product settlement, claims, recall charges
+equipment and other intangible assets
+2,766.6
+2,766.6
+Payables on purchase of property, plant and
+11,238.4
+445.9
+174.3
+2.2
+637.7
+9,978.3
+Trade payables
+Financial liabilities
+77,323.5
+445.9
+445.9
+7,437.4
+1,625.1
+4,076.6
+3,593.1
+869.5
+6,693.0
+Trade payables
+As at March 31, 2022 and March 31, 2021, the Company has loan facilities which are either on fixed interest rates or
+are managed by interest rate swaps, hence the Company is not exposed to interest rate risk.
+Derivative contracts
+The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily
+in US Dollars, Euros, South African Rand and Russian Rouble. The Company uses foreign currency forward contracts,
+foreign currency option contracts and currency swap contracts (collectively, "derivatives") to mitigate its risk of
+changes in foreign currency exchange rates. The counterparty for these contracts is generally a bank or a financial
+institution.
+Hedges of highly probable forecasted transactions
+The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable
+forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow
+hedges is recorded as in other comprehensive income, and re-classified in the income statement as revenue in the
+period corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow
+hedges is immediately recorded in the statement of profit and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a net loss
+of 492.4 Million for the year ended March 31, 2022 and net gain of 1,112.4 Million for the year ended March
+31, 2021 in other comprehensive income. The Company also recorded hedges as a component of revenue, gain of
+1,128.3 Million for the year ended March 31, 2022 and gain of 108.6 Million for the year ended March 31, 2021
+on occurrence of forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and
+liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in the statement of profit
+and loss. The changes in fair value of the forward contracts and option contracts, as well as the foreign exchange
+gains and losses relating to the monetary items, are recognised in the statement of profit and loss.
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative
+contracts -
+Amount in Million
+178
+Currency
+Cross
+Currency
+As at
+March 31, 2022
+As at
+March 31, 2021
+Derivatives designated as hedges
+Forward contracts
+ZAR
+Sell
+INR
+Buy/Sell
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+1.6
+164.9
+1,329.0
+14,490.5
+Product settlement, claims, recall charges
+and trade commitments
+17,861.2
+887.0
+18,748.2
+33,188.9
+8,904.7
+1.6
+164.9
+1,329.0
+43,589.1
+b) Sensitivity
+For the years ended March 31, 2022 and March 31, 2021, every 5% strengthening of the Indian rupee against foreign
+currencies for the above mentioned financial assets/liabilities would (decrease) / increase the Company's profit and
+(decrease) / increase the Company's equity by approximately ₹ (651.9) Million and (1,310.8) Million respectively.
+A 5% weakening of the Indian rupee and the respective currencies would lead to an equal but opposite effect.
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because
+the exposure at the end of the reporting period does not reflect the exposure during the year.
+Scaling up Specialty. Leading with Care.
+177
+ZAR 360.0
+ZAR 300.0
+Forward contracts
+USD
+$ 10.9
+$ 16.5
+Forward contracts
+EUR
+Sell
+USD
+$ 19.8
+$ 24.1
+Currency swaps
+USD
+Sell
+INR
+$ 400.0
+$96.2
+Interest rate swaps (floating to fixed)
+USD
+$ 50.0
+Interest rate risk
+The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in interest
+rates. The Company's Treasury Department monitors the interest rate movement and manages the interest rate risk
+by evaluating interest rate swaps etc. based on the market / risk perception.
+USD
+Euro
+Sell
+Forward contracts
+Sell
+INR
+$ 501.2
+Forward contracts
+USD
+Buy
+JPY
+$ 430.6
+$7.6
+Derivatives not designated as hedges
+Forward contracts
+USD
+Sell
+INR
+$ 75.0
+Forward contracts
+RUB
+Buy
+USD
+$ 6.0
+GBP
+301.4
+US Dollar
+* in Million
+65,848.0
+17,157.4
+287.6
+1,198.5
+4,152.3
+17,725.3
+25,326.9
+Undisputed Trade receivables -
+considered good
+(i)
+31, 2021
+As at March
+More than
+3 years
+2-3 years
+1-2 years
+6 months
+-1 year
+Less than 6
+months
+Not due
+Trade receivables ageing
+(ii)
+Undisputed Trade Receivables -
+0.3
+1,237.2
+4,152.6
+25,326.9 17,725.3
+credit impaired
+26.8
+9.0
+17.8
+(iv) Disputed Trade Receivables -
+considered good
+4.6
+0.9
+3.7
+Disputed Trade Receivables-
+(iii)
+credit impaired
+1,224.5
+1,173.7
+33.3
+17.2
+* in Million
+321.8
+43,793.3
+250.2
+20,864.6 15,940.1
+Undisputed Trade receivables -
+considered good
+(i)
+Trade receivables ageing
+in Million
+As at March
+31, 2022
+More than 3
+years
+2-3 years
+1-2 years
+2,887.4
+6 months
+-1 year
+Not due
+Financial assets for which loss allowances is measured using the expected credit loss
+The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company
+uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and
+internal risk factors and historical data of credit losses from various customers.
+Trade receivables
+The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that
+have a good credit rating. The Company does not expect any significant losses from non-performance by these counter-
+parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks
+Investments
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Less than
+6 months
+629.5
+208.5
+1,917.7
+679.6
+2,949.9
+15,940.1
+20,864.6
+26.8
+9.0
+17.8
+3.7
+3.7
+1,315.0
+1,182.2
+20.2
+50.1
+62.5
+(iv) Disputed Trade Receivables -
+credit impaired
+(iii) Disputed Trade Receivables-
+considered good
+Undisputed Trade Receivables -
+credit impaired
+(ii)
+42,447.8
+3,108.9
+18,340.1
+67,103.9
+Footnote
+71,666.8
+44,438.1
+8,564.9
+18,663.8
+40,285.4
+As at
+March 31, 2021
+More than 3 years
+1-3 years
+Less than
+1 year
+40,285.4
+* in Million
+Other financial liabilities
+Lease liabilities
+Trade payables
+Borrowings
+1,324.7
+Non derivative
+127.0
+40,551.1
+118,395.9
+127.0
+Derivative
+188.1
+22,258.0
+81,395.3
+36.8
+36.8
+269.3
+1,759.1
+a) Significant foreign currency risk exposure relating to trade receivables, other receivables, cash and cash equivalents,
+borrowings and trade payables
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+176
+The Company's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily
+in US Dollars, Euros, South African Rand and Russian Rouble). As a result, if the value of the Indian rupee appreciates
+relative to these foreign currencies, the Company's revenues and expenses measured in Indian rupees may decrease
+or increase and vice-versa. The exchange rate between the Indian rupee and these foreign currencies have changed
+substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses
+both derivative and non-derivative financial instruments, such as foreign exchange forward contracts, option contracts,
+currency swap contracts and foreign currency financial liabilities, to mitigate the risk of changes in foreign currency
+exchange rates in respect of its highly probable forecasted transactions and recognised assets and liabilities.
+Foreign exchange risk
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
+market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of
+market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable
+to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-
+term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and
+the market value of its investments. Thus, the Company's exposure to market risk is a function of investing and borrowing
+activities and revenue generating and operating activities in foreign currencies.
+Market risk
+36.8
+36.8
+136,426.7
+46,197.2
+8,834.2
+22,258.0
+2,216.5
+127.0
+127.0
+Derivative
+50,307.0
+246.2
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+175
+Scaling up Specialty. Leading with Care.
+Other than trade receivables, the Company has recognised an allowance of 15.3 Million (March 31, 2021 : 15.3 Million)
+against past due loans including interest and 500.0 Million (March 31, 2021 : 500.0 Million) of other receivables based
+on assessment regarding its future recoverability.
+1,251.5
+(185.3)
+136.7
+1,300.1
+* in Million
+Year ended
+March 31, 2021
+1,341.7
+(110.2)
+1,251.5
+200.4
+Year ended
+March 31, 2022
+Balance at the end of the year
+Recoveries
+Addition
+Balance at the beginning of the year
+Movement in the expected credit loss allowance on trade receivables
+Unbilled revenue as at March 31, 2022 is 345.3 Million (March 31, 2021 : 642.0 Million)
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+As at March 31, 2022
+FOR THE YEAR ENDED MARCH 31, 2022
+Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
+Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its
+liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the
+Company's reputation.
+67,842.7
+40,551.1
+Other financial liabilities
+2,053.3
+1,650.6
+246.2
+156.5
+Lease liabilities
+48,687.1
+27,104.4
+48,656.4
+30.7
+27,104.4
+Trade payables
+Non derivative
+Borrowings
+* in Million
+As at
+March 31, 2022
+More than
+3 years
+1 - 3 years
+Less than
+1 year
+The table below provides details regarding the contractual maturities of significant financial liabilities:
+The Company has unutilised working capital lines from banks of 36,030.0 Million as on March 31, 2022 (March 31, 2021 :
+* 36,486.6 Million).
+Liquidity risk
+391.4
+COVID-19
+Surplus fund lying uninvested
+Not due
+Trade payables ageing
+b)
+Principal amount remaining unpaid to any supplier as at the end of the accounting year
+There are no amounts of interest paid / due / payable during the year / previous year / succeeding year. Also, there is
+no amount of interest accrued and remaining unpaid at the end of current accounting year / previous accounting year.
+852.0
+March 31, 2021
+March 31, 2022
+1,052.8
+As at
+in Million
+As at
+Disclosures under the Micro, Small and Medium Enterprises Development Act, 2006
+The information regarding Micro and Small Enterprises has been determined to the extent such parties have been
+identified on the basis of information available with the Company. This has been relied upon by the auditors.
+a)
+NOTE : 44 TRADE PAYABLES
+Exposure to market risk with respect to commodity prices primarily arises from the Company's purchases and sales of
+active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients.
+These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the
+Company's raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used
+in the Company's active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms
+the largest portion of the Company's cost of revenues. Commodity price risk exposure is evaluated and managed
+through operating procedures and sourcing policies. As of March 31, 2022, the Company had not entered into any
+material derivative contracts to hedge exposure to fluctuations in commodity prices.
+Commodity rate risk
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Less than
+1 year
+Financial Statements
+1-2 years
+More than 3
+years
+11
+# Represents contribution to Shantilal Shanghvi Foundation.
+Amount carried forward for set off in subsequent years from the excess spend in FY 2020-21 is 21.2 Million as at March 31, 2022.
+The Company continues to monitor the impact of COVID-19 on its business, including its impact on customers,
+supply-chain, employees and logistics. Due care has been exercised, in concluding on significant accounting
+judgements and estimates, including in relation to recoverability of receivables, assessment of impairment of goodwill
+and intangibles, investments and inventory, based on the information available to date, while preparing the Company's
+standalone financial statements as on year ended March 31, 2022.
+12 The Scheme of Amalgamation and Merger of Sun Pharma Global FZE ("the Transferor"), with the Company ("the
+Scheme"), inter-alia envisaged merger of the transferor into the Company. The Scheme was approved by Hon'ble
+National Company Law Tribunal, Ahmedabad Bench on August 31, 2021 and became effective on October 01, 2021
+upon completion of all the formalities.
+13
+Consequent to the amalgamation and merger prescribed by the Scheme, all the assets and liabilities of the transferor
+were transferred to and vested in the Company with effect from January 01, 2020 ("the Appointed Date").
+The amalgamation was accounted under the "pooling of interest" method prescribed under Ind AS 103 - Business
+Combinations, as prescribed by the Scheme.
+Accordingly all the assets, liabilities, and other reserves of the transferor as on January 01, 2020 were transferred
+to the Company as per the Scheme. As prescribed by the Scheme no consideration was paid as the transferor is a
+indirect wholly owned subsidiary of the Company. The resultant difference between the book value of assets and
+liabilities taken-over as on the appointed date on the existing carrying value has been credited to capital reserve
+amounting to 273.3 Million. Further, as prescribed in the Scheme approved by the NCLT, the Company has recorded
+an impact of impairment in relation to the equity shares held by the Company in the subsidiary through which the
+Company holds equity shares of the Transferor amounting to ₹31,590.0 Million which has been debited to capital
+reserve account. Also, any gain or loss on translation of assets and liabilities to functional currency (i.e. *) till the date
+of order has been credited or debited to foreign currency translation reserve.
+As part of the ongoing simplification of the group structure in India, the Board of Directors of the Company at its
+meeting held on May 30, 2022, approved the Scheme of Amalgamation for the merger of Wholly-owned Subsidiaries,
+Sun Pharmaceutical Medicare Limited, Green Eco Development Centre Limited, Faststone Mercantile Company
+Private Limited, Realstone Multitrade Private Limited and Skisen Labs Private Limited (collectively "Transferor
+Companies"), with Sun Pharmaceutical Industries Limited ("Transferee Company") to be effective from such date as
+may be decided under the authorization by the Board of Directors of the Transferor Companies and the Board of
+Directors of the Transferee Company and / or such other date as may be approved by the National Company Law
+Tribunal pursuant to the provisions of Sections 230 to 232 of Companies Act, 2013 and other relevant provisions of
+the Companies Act, 2013 and rules framed thereunder.
+188
+4,068.3
+15,649.1
+Outstanding dues of other than micro
+and small enterprises
+* in Million
+As at
+March 31, 2022
+954.1
+954.1
+Outstanding dues of micro and small
+enterprises
+2-3 years
+where a provision is made with respect to a liability incurred by entering into a
+contractual obligation, the movements in the provision during the year should be
+shown separately
+Statutory Reports
+a)
+22,570.5
+7.022.1
+7,104.0
+Sun Laboratories FZE
+510.2
+495.4
+501.2
+169.2
+166.8
+168.7
+Sun Pharma Phillipines Inc.
+Sun Pharmaceutical Peru SA
+131.4
+129.5
+131.0
+4,052.8
+926.1
+These loans have been granted to the above entities for the purpose of their business.
+Corporate Overview
+NOTE: 51
+Year ended
+March 31, 2022*
+The preparation of the Company's financial statements requires the management to make judgements, estimates and
+assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
+disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and
+underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
+in which the estimates are revised and in any future periods affected. In particular, information about significant areas of
+estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the
+amounts recognised in the financial statements is included in the following notes:
+NOTE: 52 USE OF ESTIMATES, JUDGMENTS AND ASSUMPTIONS
+(*) includes provision for trade commitments, discounts, rebates, price reduction and product returns.
+15,441.9
+26,118.2
+At the end of the year [Also Refer Note 54(2)]
+(8,600.7)
+(6,772.2)
+Less: Utilisation / settlement / reversal
+1,706.8
+17,448.5
+22,335.8
+15,441.9
+Add: Provision for the year
+At the commencement of the year
+March 31, 2021*
+in Million
+Year ended
+In respect of any present obligation as a result of past event that could lead to a probable outflow of resources, provisions
+has been made, which would be required to settle the obligation. The said provisions are made as per the best estimate
+of the management and disclosure as per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has been
+given below:
+2.2
+(h)
+100.0
+a) On March 25, 2021 the CJEU (Court of Justice to the European Union) issued a final judgment and upheld the
+European Commission's ("EC") decision dated June 19, 2013 that a settlement agreement between Ranbaxy (U.K.)
+Limited and Ranbaxy Laboratories Limited (together "Ranbaxy") with Lundbeck was anti-competitive. Ranbaxy
+had made a provisional payment of the fine of Euros 10.3 Million on September 20, 2013. Since there were no
+further rights of appeal, this amount of 895.6 Million (inclusive of legal charges) was debited to the standalone
+financial statement for the year ended March 31, 2021.
+b) Standalone financial statements for the year ended March 31, 2022 include a charge of 1,655.7 Million towards
+impairment of an acquired intangible asset under development.
+c)
+The Company and certain of its subsidiaries are defendants in a number of class action lawsuits brought by purchasers
+and payors in the U.S. alleging violation of antitrust laws with respect to its ANDAs for Valganciclovir, Valsartan and
+Esomeprazole. The cases were transferred to the U.S. District Court for the District of Massachusetts for coordinated
+186
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone Accounts
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+3
+4
+5
+6
+7
+8
+Exceptional items includes
+9
+Intangible assets consisting of trademarks, designs, technical knowhow, non-compete fees and other intangible assets
+are available to the Company in perpetuity. The amortisable amount of intangible assets is arrived at based on the
+management's best estimates of useful lives of such assets after due consideration as regards their expected usage,
+the product life cycles, technical and technological obsolescence, market demand for products, competition and their
+expected future benefits to the Company.
+1
+(18,058.5)
+155,185.0
+139,884.0
+* in Million
+Year ended
+March 31, 2022
+Year ended
+March 31, 2021
+Contract balances
+Trade receivables
+Contract assets
+Contract liabilities
+42,451.6
+345.3
+11,312.4
+65,852.4
+642.0
+10,897.8
+Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
+revenue received from customer for which performance obligation has not yet been completed.
+The performance obligation is satisfied when control of the goods or services are transferred to the customers based on
+the contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract
+NOTE: 54
+2
+100.0
+d)
+Consequent to the settlement of lawsuit mentioned in "c" above, during the year ended March 31, 2022, the
+Company has reassessed the expected timing of utilisation of Minimum Alternate Tax (MAT) credit and based on
+this reassessment written off a MAT credit of ₹4,406.0 Million and disclosed the charge as an exceptional item.
+Shortfall (surplus) at the end of the year
+As at
+March 31, 2022
+* in Million
+As at
+March 31, 2021
+317.4
+129.8
+198.6
+269.5
+118.8
+(139.7)
+(e)
+Total of previous years shortfall
+(f) Reason for shortfall
+NA
+NA
+(g)
+Details of related party transactions (as per Ind AS 24) #
+(d)
+proceedings. With a view to resolve the dispute and avoid uncertainty, a settlement without any admission of guilt or
+violation of any statute, law, rule or regulation, or of any liability or wrongdoing was reached with all of the plaintiff
+classes on March 23, 2022, for a total settlement amount of USD 485 Million of which USD 210 Million was borne
+by the Company along with its related legal charges of USD 8.3 Million pertaning to this lawsuit (equivalent to
+* 16,549.6 Million inclusive of legal charges). The settlement is subject to final approval by the Court.
+Set-off of excess spent of previous years, if any
+Amount of expenditure incurred
+Since the USFDA import alert at Karkhadi facility in March 2014, the Company remained fully committed to
+implement all corrective measures to address the observations made by the USFDA with the help of third party
+consultant. The Company had completed all the action items to address the USFDA warning letter observations issued
+in May 2014. The Company is awaiting a re-inspection of the facility by the USFDA to resolve the import alert. The
+contribution of this facility to Company's revenues was negligible.
+The USFDA, on January 23, 2014, had prohibited using API manufactured at Toansa facility for manufacture of
+finished drug products intended for distribution in the U.S. market. Consequentially, the Toansa manufacturing facility
+was subject to certain provisions of the consent decree of permanent injunction entered in January 2012 by erstwhile
+Ranbaxy Laboratories Ltd (which was merged with Sun Pharmaceutical Industries Ltd in March 2015). In addition,
+the Department of Justice of the USA ('US DOJ'), United States Attorney's Office for the District of New Jersey had
+also issued an administrative subpoena dated March 13, 2014 seeking information. The Company continues to fully
+co-operate and provide requisite information to the US DOJ.
+The December 2019 USFDA inspection of Halol facility was classified as Official Action Indicated (OAI). The
+Company was in continuous communication with the USFDA to resolve the outstanding issues and was awaiting a
+re-inspection by USFDA to resolve the OAI status. However, due to the COVID-19 pandemic and travel restrictions,
+the re-inspection was delayed. In April-May 2022, the USFDA inspected the Halol facility and issued Form-483 with
+10 observations. The Company will be submitting a comprehensive response, including the corrective actions to be
+undertaken for addressing the observations, within the stipulated time to the USFDA.
+In September 2013, the USFDA had put the Mohali facility under import alert and it was also subjected to certain
+provisions of the consent decree of permanent injunction entered in January 2012 by erstwhile Ranbaxy Laboratories
+Ltd (which was merged with parent company in March 2015). In March 2017, the USFDA lifted the import alert and
+indicated that the facility was in compliance with the requirements of cGMP provisions mentioned in the consent
+decree. The Mohali facility continues to demonstrate sustainable cGMP compliance and has completed the 5-year
+post certification provisions as required by the consent decree. The Company continues to receive approval of
+applications, manufacture and distribute products to the U.S from this facility.
+In accordance with Ind AS 108 "Operating Segments", segment information has been given in the consolidated
+Ind AS financial statements, and therefore, no separate disclosure on segment information is given in these
+financial statements.
+During the year, the Company has acquired additional 11.28 % stake in Zenotech Laboratories Limited (Zenotech), a
+subsidiary of the Company, from Daiichi Sankyo Company Ltd. for a total consideration of 53.23 Million pursuant to
+a share purchase agreement. Post this acquisition, the Company's shareholding in Zenotech has increased from 57.56
+% to 68.84 %.
+The date of implementation of the Code on Wages 2019 and the Code on Social Security, 2020 is yet to be notified
+by the Government. The Company will assess the impact of these Codes and give effect in the standalone financial
+statements when the Rules/Schemes thereunder are notified.
+10 Corporate social responsibility (CSR)
+As per section 135 of the Companies Act, 2013, the Company is required to spend at least 2% of its average net
+profits for the immediately preceding three financial years on corporate social responsibility activities. The CSR
+Scaling up Specialty. Leading with Care.
+187
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Committee of the Company monitors the CSR activities and the projects are undertaken in pursuance of the
+Company's CSR Policy and the Annual Action Plan. Company's Annual Action Plan for the financial year 2021-22
+covered CSR activities in the areas - Healthcare; Education; Environment Conservation; Drinking Water Project;
+Disaster Relief & COVID-19 and Rural Development Programme.
+(a) Amount required to be spent by the company during the year
+(b)
+(c)
+126.9
+Sun Pharmaceuticals Ind. S.A.C.
+Sun Pharmaceutical Industries (Australia) Pty Ltd
+77.1
+83.8
+2,078.8
+11.3
+12.3
+2,853.8
+2,187.1
+3,615.4
+1,760.0
+95.9
+355.6
+89.5
+425.3
+91.3
+6.6
+407.5
+90.4
+455.8
+1,913.7
+93.1
+1,183.7
+NOTE: 47 LEASES
+4,610.6
+4,270.2
+3,147.3
+2,908.2
+1,096.1
+1,038.2
+367.2
+323.8
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2022
+Scaling up Specialty. Leading with Care.
+Later than five years
+Later than one year and not later than five years
+Not later than one year
+Lease liabilities - Maturity analysis - contractual undiscounted cashflows
+The Company has recognised a lease liability measured at the present value of the remaining lease payments, and
+right-of-use (ROU) asset at an amount equal to lease liability (adjusted for any related prepayments). Management has
+exercised judgement in determining whether extension and termination options are reasonably certain to be exercised.
+Expenses relating to short-term leases and low-value assets for year ended March 31, 2022 is 23.1 Million (March 31,
+2021 20.1 Million).
+a)
+1,089.6
+183
+5.3
+91.5
+200.9
+100.7
+238.0
+76.4
+(180.1)
+(89.5)
+(213.3)
+(70.7)
+(5.0)
+5.6
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+As at March 31, 2021
+* in Million
+As at March 31, 2022
+Education
+(Unfunded)
+228.4
+425.2
+194.3
+(178.0)
+511.2
+94.8
+4.3
+414.4
+92.5
+526.9
+96.2
+5.1
+633.6
+93.6
+747.3
+154.2
+4.1
+29.2
+39.6
+(26.6)
+(36.0)
+(209.1)
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+10.1
+Softdeal Trading Company Private Limited, India
+0.2
+Skisen Labs Private Limited, India
+206.6
+206.6
+206.6
+60.0
+Zenotech Laboratories Limited, India
+5,345.2
+Sun Pharmaceutical Medicare Limited, India
+Loans / advances outstanding from subsidiaries
+* in Million
+Maximum balance
+March 31, 2021
+As at
+March 31, 2021
+Maximum balance
+March 31, 2022
+As at
+March 31, 2022
+NOTE: 50 LOANS / ADVANCES GIVEN TO SUBSIDIARIES AND ASSOCIATES
+Realstone Infra Limited, India
+FOR THE YEAR ENDED MARCH 31, 2022
+500.6
+500.6
+Sun Pharma Holding
+Sun Pharmaceuticals Korea Lrd
+OOO Sun Pharmaceutical Industries
+Sun Pharma East Africa Ltd
+Ranbaxy (Thailand) Co Ltd
+38.5
+267.2
+5,684.1
+7,313.8
+7,313.8
+30,315.0
+30,315.0
+5,684.1
+Sun Pharma (Netherlands) B.V.
+Sun Pharmaceutical Inc. USA
+178.0
+Sun Pharma Distributors Limited, India
+500.7
+500.6
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+180.4
+261.8
+39.8
+2,211.8
+2,216.5
+Payment towards lease liabilities
+Closing balance
+Effect of changes in foreign exchange rates
+Deletion
+Interest on lease liabilities
+Addition
+Opening balance
+Movement of lease liabilities
+b)
+March 31, 2021
+Year ended
+Year ended
+March 31, 2022
+* in Million
+193.9
+(13.6)
+(59.3)
+0.5
+Statutory Reports
+Corporate Overview
+184
+The Company has not defaulted on repayment of loan and interest payment thereon during the year.
+NOTE: 49 RELATED PARTY DISCLOSURES (IND AS 24) AS PER ANNEXURE "A"
+(IV) Unsecured loan from related party of USD Nil (March 31, 2021 : USD 91.5 Million) equivalent to Nil (March 31, 2021:
+* 6,693 Million). The loan has been repaid during current year.
+(III) Unsecured loan from related party of 48,656.4 Million (March 31, 2021 : 44,427.3 Million). The loan is taken on
+March 31, 2021 and is repayable by March 31, 2026. The loan has been availed at 6.50%.
+(II) Secured term loan from department of biotechnology of Nil (March 31, 2021 : 75.7 Million) was secured by
+hypothecation of movable assets of the Company. The loan has been repaid during current year.
+USD Nil (March 31, 2021 USD 50 Million) equivalent to Nil (March 31, 2021: 3,657.4 Million). The loan was
+taken on October 03, 2018 and was repayable in 2 equal installments of USD 25 Million each. The loan has been
+repaid during current year. The unsecured ECBs was availed at floating rate linked to Libor (0.66% as at March 31,
+2021).
+(1,288.1)
+(a)
+Details of long term borrowings and current maturities of long term debt (included under short term borrowings)
+Unsecured External Commercial Borrowings (ECBs) has USD Nil loan (March 31, 2021: USD 50 Million) equivalent to
+* Nil (March 31, 2021 : 3,657.4 Million). For the ECB loans, the terms of repayment for borrowings are as follows:
+NOTE: 48 BORROWINGS
+The Company has given certain premises under operating lease or leave and license agreements. These are generally
+not non-cancellable and periods range between 11 months to 4 years under leave and license/lease and are renewable
+by mutual consent on mutually agreeable terms. The Company has received refundable interest free security deposits
+where applicable in accordance with the agreed terms.
+2,053.3
+(370.3)
+2,216.5
+(391.9)
+0.2
+(1)
+(17,201.0)
+(1,464.2)
+(857.5)
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+181
+Scaling up Specialty. Leading with Care.
+for gratuity, during financial year ending March 31, 2023 is
+*902.0 Million (March 31, 2022: 521.6 Million)
+1,087.6
+62.0
+68.8
+180.5
+3,935.3
+17.0
+1,072.2
+72.7
+(42.2)
+5.4
+104.0
+(40.4)
+Obligation as at the year end
+182
+- due to experience
+Reconciliation of liability recognised in the financial statement
+Fair value of plan assets
+Employer's contribution during the year
+Actuarial gain
+Plan assets transferred
+Expected return
+March 31, 2021
+Gratuity (Funded)
+* in Million
+As at
+Gratuity (Funded)
+March 31, 2022
+As at
+Plan assets as at the beginning of the year
+Reconciliation of plan assets
+3,330.8
+(3,091.7)
+239.1
+Gratuity (Funded)
+* in Million
+As at
+March 31, 2021
+3,935.3
+(3,358.6)
+576.7
+As at
+March 31, 2022
+Gratuity (Funded)
+Net liability recognised in the financial statement
+Present value of commitments (as per Actuarial Valuation)
+Benefits paid
+assumptions
+Actuarial (gains)/losses on obligations
+Reconciliation of defined benefit obligations
+comprehensive income
+Expense/(income) charged to other
+37.4
+74.2
+246.8
+(23.4)
+17.6
+(37.7)
+19.8
+74.2
+284.5
+(23.4)
+Actuarial gain on plan assets
+Actuarial loss (gain) on defined benefit
+obligation
+recognised in other comprehensive income
+Remeasurement of defined benefit obligation
+Obligation as at the beginning of the year
+- due to change in financial
+1,087.6
+1,009.7
+(127.1)
+(61.9)
+(201.4)
+(62.1)
+Benefits paid
+(10.2)
+Obligations transferred
+191.6
+65.6
+207.5
+70.1
+Interest cost
+296.9
+324.1
+72.7
+Current service cost
+2,949.6
+3,330.8
+Plan assets as at the year end
+Assumptions:
+Discount rate
+Statutory Reports
+Corporate Overview
+60
+N.A.
+60
+N.A.
+N.A.
+12.40% - 13.45%
+Lives Mortality
+(2012-14)
+Indian Assured
+Indian Assured
+Lives Mortality
+(2012-14)
+N.A.
+N.A.
+N.A.
+9.00%
+N.A.
+10.00%
+N.A.
+Indian Assured
+Lives Mortality
+(2012-14)
+12.40% - 13.45%
+Indian Assured
+Lives Mortality
+(2012-14)
+N.A.
+Financial Statements
+N.A.
+Standalone Accounts
+FOR THE YEAR ENDED MARCH 31, 2022
+Insurer managed funds (Funded with LIC, break-up not
+available)
+Bonds and securities
+Central government securities
+The major categories of plan assets are as under
+Thereafter
+year
+5th
+year
+4th
+2nd year
+year
+3rd
+1st year
+Delta effect of -1% change in discount rate
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee turnover
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation for next
+Delta effect of +1% change in discount rate
+Impact on defined benefit obligation
+The sensitivity analysis have been determined based on
+method that extrapolates the impact on defined benefit
+obligation as a reasonable change in key assumptions
+occuring at the end of the reporting period
+Sensitivity analysis:
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Indian Assured
+Lives Mortality
+(2012-14)
+N.A.
+N.A.
+(127.1)
+(201.4)
+410.9
+248.2
+(17.6)
+37.7
+(10.7)
+172.3
+193.1
+2,653.2
+3,091.7
+Retirement Age (years)
+Employee turnover
+Mortality
+Interest rate guarantee
+Expected rate of salary increase
+Expected return on plan assets
+3,358.6
+3,091.7
+As at March 31, 2022
+As at March 31, 2021
+N.A.
+N.A.
+6.25%
+N.A.
+6.75%
+N.A.
+N.A.
+6.25%
+316.2
+6.45%
+6.90%
+6.85%
+(Unfunded)
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+COVID-19
+Education
+6.75%
+The contribution expected to be made by the Company
+65.6
+70.1
+Disputed dues of micro and small
+39,390.3
+* 4,160.2
+713.9
+2,704.0
+18,813.7
+12,998.5
+Outstanding dues of other than micro
+and small enterprises
+* in Million
+As at
+March 31, 2021
+698.1
+698.1
+Outstanding dues of micro and small
+enterprises
+More than 3
+years
+2-3 years
+1-2 years
+Less than 1
+year
+Not due
+27,104.4
+127.7
+4,822.6
+17.8
+3.4
+179
+Scaling up Specialty. Leading with Care.
+* Includes trade payable to subsidiaries of ₹3,939.8 Million.
+40,285.4
+4,170.6
+745.0
+2,731.8
+18,941.4
+43.1
+7.0
+26.1
+10.0
+13,696.6
+small enterprises
+Disputed dues of other than micro and
+enterprises
+153.9
+5.0
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+242.7
+4,157.2
+Scaling up Specialty. Leading with Care.
+185
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 53 REVENUE FROM CONTRACTS WITH CUSTOMERS
+The Company has recorded an additional amount of 667.4 Million (March 31, 2021 : 1,520.1 Million) as deferred
+revenue pursuant to the requirements of Ind AS 115. Revenue of ₹ 1,661.5 Million (March 31,2021 : 1,740.5 Million) has
+been recognised as Revenue from contract with customer pursuant to completion of performance obligation in respect of
+the above contracts.
+The reconciling items of revenue recognised in the statement of profit and loss with the contracted price are as follows:
+Year ended
+March 31, 2022
+156,473.1
+* in Million
+Year ended
+March 31, 2021
+157,942.5
+Revenue as per contracted price, net of returns
+Add / (Less):
+Provision for sales return
+Rebates, discounts and price reduction
+Revenue from contract with customers
+176.1
+Impairment of goodwill and intangible assets [Refer Note 2(2.2) (g)]
+1,278.7
+c)
+Litigations [Refer Note 2 (2.2) (m) and Note 38]
+2.6
+2.6
+* Includes trade payable to subsidiaries of 4,572.0 Million.
+16,603.2
+small enterprises
+Disputed dues of other than micro and
+enterprises
+98.7
+1.0
+2.1
+6.7
+88.9
+Disputed dues of micro and small
+26,049.0
+4,819.0
+240.6
+1,272.0
+b) Revenue [Refer Note 2(2.2)(n)]
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 45 EARNINGS PER SHARE
+COVID-19
+Education
+Year ended March 31, 2021
+Year ended March 31, 2022
+* in Million
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as
+at the year end using the 'Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating
+to defined benefit obligation are recognised in other comprehensive income whereas gains and losses in respect of
+other long term employee benefit plans are recognised in profit or loss.
+Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company
+policy with corresponding charge to the statement of profit and loss amounting to ₹ 539.5 Million [March 31, 2021
+: 423.0 Million] and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of
+service and employee compensation.
+Other long term benefit plan
+iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries
+of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
+iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best
+estimate of the mortality of plan participants both during and after their employment. An increase in the life
+expectancy of the plan participants will increase the plan's liability.
+Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be
+partially offset by an increase in the return on the plan's debt investments.
+ii)
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Standalone Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+Pension Fund
+(Unfunded)
+180
+Gratuity
+(Funded)
+Gratuity
+(Funded)
+72.7
+Expense charged to the statement of
+profit and loss
+(172.3)
+(193.1)
+Expected return on plan assets
+191.6
+65.6
+207.5
+70.1
+Interest cost
+296.9
+324.1
+72.7
+Current service cost
+and loss (Refer Note 33)
+Expense recognised in the statement of profit
+(Unfunded)
+Pension Fund
+(Unfunded)
+Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate
+determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual
+return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by
+investment in LIC managed fund.
+i)
+These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk
+and salary risk.
+3.5
+(0.4)
+3.5
+(0.4)
+1
+2,399,334,970
+2,399,334,970
+8,424.0
+(999.9)
+Year ended
+March 31, 2021
+Year ended
+March 31, 2022
+Defined contribution plan
+NOTE: 46 EMPLOYEE BENEFITS
+Diluted earnings per share (in )
+Basic earnings per share (in )
+Face value per share (in )
+Profit/(loss) for the year (in Million) - used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic earnings per share
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC) and
+other Funds which covers all regular employees. While both the employees and the Company make predetermined contributions
+to the Provident Fund and ESIC, contribution to the Family Pension Fund and other Statutory Funds are made only by the
+Company. The contributions are normally based on a certain percentage of the employee's salary. Amount recognised as
+expense in respect of these defined contribution plans, aggregate to 872.1 Million (March 31, 2021 : 801.6 Million).
+Contribution to Provident Fund and Family Pension Fund
+Contribution to Superannuation Fund
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Risks
+The Company has undertaken an obligation to provide financial support towards education expenses of the children
+of those employees who have unfortunately lost their lives due to the COVID-19 pandemic.
+COVID-19 Employee children education support
+The Company has an obligation towards pension, a defined benefit retirement plan, with respect to certain employees,
+who had already retired before March 01, 2013 and will continue to receive the pension as per the pension plan.
+Pension fund
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund
+Scheme. It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to
+specific benefit at the time of retirement or termination of the employment on completion of five years or death while
+in employment. The level of benefit provided depends on the member's length of service and salary at the time of
+retirement/termination age. Provision for gratuity is based on actuarial valuation done by an independent actuary as
+at the year end. Each year, the Company reviews the level of funding in gratuity fund and decides its contribution.
+The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets the
+requirements of gratuity payments in short to medium term.
+0.8
+1.1
+338.5
+27.4
+65.3
+* in Million
+Year ended
+March 31, 2021
+708.1
+Year ended
+March 31, 2022
+762.4
+69.8
+Gratuity
+b)
+a)
+Defined benefit plan
+Contribution to Labour Welfare Fund
+38.8
+3,330.8
+1
+2019
+39
+31
+22
+Global Markets
+18
+15
+11
+11
+Pharmerging Markets
+49
+44
+35
+26
+Other Developed Markets
+58
+45
+48
+Sun Pharma has been investing in building a global
+specialty business from 2014 onwards. The key areas of
+investments include:
+• Clinical development of specialty products
+•
+• Launched in Canada in 2021
+Introduction in key geographies
+Dry eye disease
+Cequa
+Ilumetri
+Plaque psoriasis
+llumya/
+Indication
+Product
+Specialty Portfolio
+Table 7
+The Company has, till date, commercialised 13 specialty
+products across different markets, which contributed ~13%
+to the Company's consolidated revenues for FY22.
+Establishing front-end sales and market access teams,
+product commercialisation, branding and promotion of
+specialty products
+•
+• Product access - through a combination of in-licensing
+and own in-house R&D
+38
+26
+Top 10 Developed Markets
+Acquired Caraco
+1997
+Industries Ltd.
+Acquired Taro Pharmaceutical
+2010
+Acquired DUSA Pharma, Inc.
+2012
+Acquired Pharmalucence
+2014
+In-licensing agreement with Merck for Tildrakizumab, a biologic Strengthening the specialty product pipeline across the globe
+for psoriasis
+Distribution services agreement in India for brand 'Oxra' and
+'Oxramet'Ⓡ (brands of dapagliflozin, used for diabetes treatment)
+Strengthens branded ophthalmic portfolio in the US
+Distribution services agreement in India for brand 'Axcer'Ⓡ (brand
+of ticagrelor, used for the treatment of acute coronary syndrome)
+Strengthen position in the global generics pharma industry, #1
+Pharma company in India and strong positioning in emerging markets
+Entry into Japan
+2014
+Sun Pharma-Ranbaxy merger
+2015
+Access to sterile injectable capacity in the US
+Access to specialty drug-device combination in dermatology
+segment in the US
+Access to dermatology generics portfolio
+Manufacturing facilities at Israel & Canada
+2026
+2021
+2016
+2011
+Year
+(%)
+-
+Launched in Japan in 2020
+in Overall Pharmaceutical
+Spending By Market¹
+Table 6
+Specialty medicines are latest generation products, which are
+targeted at treating chronic, complex and rare diseases. They
+accounted for ~39% of the global pharmaceutical spending in
+2021 (up from 31% in 2016) and are estimated to account for
+approximately 45% of global pharmaceutical spending in 2026.
+Our Global Specialty Initiatives
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+17
+Scaling up Specialty. Leading with Care.
+Entry into the US market
+Share of Specialty Products
+•
+Out-licensed to CMS for Greater China in 2019
+•
+Oral
+Psoriasis Atopic
+Dermatitis
+Treatment of pain
+in osteoarthritis
+Type 2 Diabetes
+GL0034
+MM-II
+IL-23 Antagonist
+Injection
+Psoriatic Arthritis
+Ilumya
+(tildrakizumab)
+SCD-044
+Phase-1 Phase-2 Phase-3 Registration Approved
+Mechanism of Action Pre-clinical
+Route of
+Administration
+Molecule/Asset Indication
+Sun Pharma - Specialty R&D Pipeline
+Table 8
+Besides the ongoing research on pre-clinical candidates, Sun Pharma has a pipeline of four specialty molecules undergoing
+clinical trials:
+Selective SIPR1
+Agonist
+Injection
+Liposomal intra-
+articular lubrication
+Russia
+Other Pharmerging Markets
+Total Pharmerging Markets
+India¹
+India is the world's largest supplier of generic medicines.
+The domestic market ranks 3rd in the world by volumes
+and 11th by value. By 2026, India's global ranking in value
+terms is expected to improve to #9.
+Over the last two years, India has emerged as one of
+the largest manufacturers and suppliers of some of the
+COVID-19 vaccines. Going forward, India is likely to
+maintain its leadership position in the manufacture and
+supply of high-quality generic medicines as well as a
+major manufacturer of COVID-19 vaccines. The domestic
+market in India recorded ~11% CAGR between 2017-21
+and is expected to grow at 8-11% CAGR over the next
+five years.
+2021
+• Launched in the US between 2018-2019
+2017-2021 CAGR
+2022-2026 CAGR
+169.4
+6.1%
+190-220
+18
+GLP-1R Agonist
+Injection
+2026
+Distribution agreement with AstraZeneca
+• Launched in Europe in 2016
+• Launched in the US in 2019
+Levulan
+Kerastick
+Topical treatment of acne vulgaris in patients 12 years of age and older
+Absorica LD Severe recalcitrant nodular acne
+Winlevi
+Launched in the US in 2021
+•
+Out-licensed to CMS for Greater China in 2019
+•
+Launched in the US in 2019
+•
+Launched in Canada in 2022
+•
+Launched in the US and Australia in 2018
+.
+starting December 2018
+Phased launch in European markets by Almirall,
+Odomzo
+In combination with BLU-U (Blue Light Photodynamic Therapy Illuminator) for
+treatment of minimally to moderately thick actinic keratoses of the face, scalp,
+or upper extremities
+Locally Advanced Basal Cell Carcinoma (LABCC)
+• Launched in the US in 2020
+• Launched in the US in 2016
+• Launched in the US in 2018
+Currently marketed in the US, Canada, Germany,
+France, Denmark, Switzerland, Spain, Italy,
+Australia and Israel
+Specialty R&D Pipeline
+Sprinkle versions of metoprolol (cardiology), rosuvastatin (cardiology) and
+duloxetine (neuro-psychiatry) for patients who have difficulty in swallowing
+Gemcitabine (chemotherapy product) in pre-mixed ready-to-use bags
+Reduction of elevated Intraocular Pressure (IOP) in patients with open-angle
+glaucoma or ocular Hypertension
+• Introduced in the US in 2019
+surgery
+Metastatic castration resistant prostate cancer in combination with
+methylprednisolone
+Infugem/
+InfuSMART
+Sprinkle
+portfolio
+Xelpros
+Bromsite
+Yonsa
+•
+• Currently marketed in the US for actinic keratosis
+Prevention of ocular pain and treatment of inflammation following cataract
+2015
+Acquired InSite Vision Inc.
+2015
+38
+48
+58
+Other Developed Markets
+26
+35
+44
+49
+Pharmerging Markets
+11
+11
+15
+18
+Global Markets
+22
+26
+Top 10 Developed Markets
+2026
+2021
+Gradual improvement in health
+insurance coverage
+Growth
+Enablers
+Higher healthcare spending by
+the government
+Higher healthcare awareness
+among the population
+Increasing access to modern
+and innovative medicines
+Specialty Medicines¹
+Specialty medicines are used to treat chronic, complex, and
+rare diseases. These medicines are typically more expensive
+than traditional medicines. Apart from that, they differ
+in terms of the complexity of disease management and
+their distribution.
+31
+The share of specialty medicines in overall pharmaceutical
+spending has been consistently increasing over the last
+decade, from 22% in 2011 to 39% in 2021. By 2026, it
+is expected to further increase to 45%. Higher income
+countries, including the top 10 developed markets and
+other high and upper-middle income countries, will be
+the main drivers of this increase. The spending share of
+pharmerging countries will be comparatively lower due to
+the higher prices of specialty medicines.
+Share of Specialty Products
+in Overall Pharmaceutical
+(%)
+-
+Spending By Market¹
+Year
+2011
+2016
+Table 5
+by rising per capita incomes
+39
+Active Pharmaceutical Ingredients (APIs)²
+4th
+Largest specialty generics
+pharmaceutical company
+globally
+Among the
+Largest
+Indian pharmaceutical
+companies in emerging
+markets
+38,000+
+8th
+Largest generic
+pharmaceutical
+company in the US
+100+
+43
+50+
+2018
+Pharmaceutical
+company in India
+#1
+Management Discussion and Analysis
+Financial Statements
+The global active pharmaceutical ingredients (APIs) market
+was valued at ~US$209 Billion in 2021 and is expected to
+grow at about 7% CAGR to reach US$334 Billion by 2028.
+The growth drivers include:
+• Overall increase in demand for pharmaceutical
+products globally
+• Patent expiries of many products globally
+• Rising use of biologics
+Consumer Healthcare Market4
+The consumer healthcare market deals with wellness,
+nutrition and skincare products. The segment also includes
+OTC medications used to treat pain, cough, itching, sleeping
+issues, gastrointestinal issues among others. The segment is
+driven by the increasing needs of modern health-conscious
+customers, looking for ways to maintain their health. The
+outbreak of the COVID-19 pandemic has been a boost
+for the industry as consumers are increasingly becoming
+conscious about self-care.
+45
+The size of the global consumer healthcare (CHC) market
+was about US$ 151 Billion in 2021 recording ~5% growth
+over 2020. Vitamins Minerals & Supplements (VMS)
+continues to be the largest category, accounting for more
+than 30% of the market and growing at about 6%. This
+growth in VMS is despite the high base of the previous
+year, which had seen significant sales of immunity-related
+products due to the pandemic. Other categories which
+contributed to the overall growth of the CHC market were
+gastrointestinal, analgesics and lifestyle CHC products.
+Sun Pharmaceutical Industries Limited, along with its
+subsidiaries and associates ('Sun Pharma'), is among the
+leading specialty generics pharmaceutical companies in
+the world and the largest pharmaceutical company in India.
+Strong research and development (R&D) capabilities, an
+efficient and vertically integrated business and a skilled
+team enable Sun Pharma to deliver high-quality products,
+trusted by customers and patients in over 100 countries,
+at affordable prices. Its global presence is supported by a
+large manufacturing infrastructure, with facilities spread
+across many countries and approved by multiple regulatory
+agencies, coupled with a multicultural workforce comprising
+over 50 nationalities.
+Sun Pharma has development and manufacturing
+capabilities for a wide range of dosage forms including
+injectables, sprays, ointments, creams, liquids, drug
+delivery systems, tablets, and capsules, as well as for
+active pharmaceutical ingredients (APIs) and intermediates.
+The Company's global products portfolio comprises
+branded generics, pure generics, innovative specialty
+products and APIs.
+16
+Strong Global Positioning
+5,7,8
+Corporate Overview
+Statutory Reports
+Sun Pharma at a Glance
+India
+Improving affordability driven
+Demographics and
+lifestyle changes leading to
+increased consumption of
+Licensing agreement with CMS for Tildrakizumab, Cequa and 8
+generic products
+2019
+Licensing agreement with AstraZeneca UK for ready-to-use
+infusion oncology products
+2019
+2020
+In-licensed Triferic brand from Rockwell Medical Inc. (USA)
+Licensing agreement with SPARC for SCD-044
+In-licensed WinleviⓇ (clascoterone cream 1%)
+Exclusive licensing agreement with Hikma for llumya
+Taro (Sun Pharma's subsidiary company) acquired Alchemee
+Business from Galderma
+Acquired Uractiv™ Portfolio from Fiterman Pharma
+2020
+2020
+2021
+2022
+2022
+2018
+Acquired Pola Pharma in Japan
+2016 Acquired global rights for Cequa and Odomzo
+2016
+Distribution agreement with AstraZeneca
+2016
+Acquired 14 brands from Novartis
+2016
+2016 Licensing agreement with Almirall for Tildrakizumab for psoriasis Access to European market for Tildrakizumab
+Local manufacturing capability to enhance presence in Russian
+market
+Enhances specialty pipeline across the globe
+Deals
+Access to Japanese dermatology market
+Access to oncology market in Mainland China
+Expands nephrology portfolio in India - for treating anaemia in
+hemodialysis patients
+Potential treatment for atopic dermatitis, psoriasis and other
+auto-immune disorders across the globe
+Topical treatment of acne vulgaris for US and Canada
+Registration and commercialisation of the product in all Middle
+East & North Africa (MENA) markets
+Acquired the 'Proactiv', 'Restorative Elements' and 'In Defense
+of Skin' brands for US, Canada, Japan. Strengthens Taro's OTC
+portfolio
+Expand non-prescription product basket in Romania and
+neighbouring markets
+Acquired Biosintez
+Access to Greater China market
+chronic medications
+Year
+Employee
+nationalities
+7.5-10.5%
+6.5-9.5%
+5-8%
+Chart 5 Indian Pharmaceutical Spending and Growth¹
+25.2
+11.1%
+CAGR
+2017-2021
+2021
+8-11%
+CAGR
+2022-2026
+37-41
+(US$ Billion)
+2026
+Scaling up Specialty. Leading with Care.
+15
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+27-31
+151-171
+470-500
+7.8%
+354.2
+8.3%
+reach
+Global employee strength
+Global manufacturing sites
+Countries market
+2.5-5.5%
+31.6
+11.7%
+Major Milestones
+47-51
+25.2
+11.1%
+37-41
+8-11%
+18.8
+11.4%
+109.2
+7.5-10.5%
+Brazil
+Rationale
+Region/Country
+2026
+2021
+2026
+2021
+2026
+2021
+2026
+2021
+2026
+Developed Markets
+74
+75-76
+11
+11-12
+10
+2021
+Year
+Total
+(US$ Billion)
+OTC, Vaccines &
+Others (%)
+0.1%
+21-25
+3-6%
+1,421
+5.1%
+1,730-1,760
+3-6%
+7-9
+Original Brands
+Region
+Non-original Brands
+(% of Total)
+Unbranded Generics
+(%)
+(%)
+(%)
+Table 2 Global Pharmaceutical Market - Share by Product Type¹
+19
+5
+1,049
+63-64
+17
+17-18
+11
+9-10
+9
+8-9
+19
+1,421
+1,230-1,260
+460-490
+21-25
+1,730-1,760
+COVID-19 vaccines have been developed in record time
+using newer technologies. These innovative approaches,
+particularly the use of mRNA technology, is spurring
+research into their use for the development of vaccines
+for other viral infections
+While COVID-19 had a short-term impact in
+2020, most of the markets globally witnessed
+recovery in 2021. The pharmaceutical industry
+has been at the forefront of the battle against
+the pandemic and has played a key role in
+ensuring access to medicines for patients
+despite the disruption caused by COVID-19
+The pandemic has also resulted
+in long-term complications
+from COVID-19 infection
+in the general population.
+Research is ongoing to improve
+understanding of the prevalence
+of post-COVID complications
+as well as to develop specific
+therapies to address these
+symptoms where existing
+medicines are ineffective or have
+suboptimal outcomes
+The global pharmaceutical
+industry witnessed delays
+in clinical trials for various
+innovative molecules in
+2020 (due to COVID-19
+disruption), which is now
+gradually normalising
+63
+Global Markets
+5-20
+11
+Pharmerging Markets
+30
+33-35
+35
+32-34
+13
+13
+4-5
+22
+353
+Other Markets
+35 33-36
+48
+43-52
+6
+5-8
+19-22
+Impact of COVID-19
+on the Global
+Pharmaceutical Industry
+5-8%
+1,230-1,260
+460-490
+MANAGEMENT DISCUSSION AND ANALYSIS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+9
+Scaling up Specialty. Leading with Care.
+Davinder Singh
+Executive Vice-President,
+Sun Global Operations
+Head Global Supply Chain
+Sreenivas Rao
+Senior Vice-President,
+CEO - Taro Pharmaceutical
+Industries Ltd.
+Uday Baldota
+Dr. Azadar H. Khan
+Senior Vice-President, Corporate
+Relations and CSR, India Regulatory
+Affairs
+Australia and New Zealand
+Business Head -
+Western Europe,
+Hellen de Kloet
+Kirti Ganorkar
+CEO India Business
+Leadership Team
+Global Pharmaceutical Industry¹
+The global pharmaceutical industry has demonstrated
+remarkable resilience by adapting to the rapidly evolving
+situation related to the COVID-19 pandemic and mitigating
+the disruptions caused by it. While COVID vaccination
+was one of the major focus areas across the world, the
+pharmaceutical industry also ensured availability of critical
+medicines used for COVID-19 treatment.
+The global pharmaceutical market was valued at US$1.4
+Trillion in 2021 and is expected to reach ~US$1.8 Trillion
+by 2026, growing at a CAGR of 3-6%. This includes the
+spending on COVID-19 vaccines, which is projected to
+reach a cumulative value of US$251 Billion during this
+period. Excluding the spending on COVID-19 vaccines,
+the industry is expected to record ~5% CAGR between
+2021 and 2026.
+Growth in developed markets will be driven by the adoption
+of new treatments and specialty medicines, offset by the
+loss of exclusivity and competition from generics and
+biosimilars. The COVID-19 pandemic has been a wake-up
+call for governments across pharmerging** markets and
+now there is increased focus on improving healthcare
+access in most countries. The overall growth in pharmerging
+markets will be driven by higher volumes, improving
+insurance coverage, higher incidence of chronic ailments
+and increased spending on innovative medicines, although
+patent expiration and low generic medicine pricing may
+dampen growth.
+2017
+China
+0
+200
+400
+600
+800
+Financial Statements
+1,000
+1,400
+1,600
+1,800
+5-Year CAGR
+Forecast
+(US$ Billion)
+Chart 1 Global Pharmaceutical Industry Growth: 2017-20261
+1,200
+2-5%
+Statutory Reports
+2020
+Regions
+Developed Markets
+Pharmerging Markets
+Other Markets
+Global Pharmaceutical Market
+Financial Statements
+Management Discussion and Analysis
+(US$ Billion)
+2021
+2017-2021 CAGR
+2026
+1,049
+4.9%
+353
+7.8%
+Table 1 Global Pharmaceutical Market¹
+Statutory Reports
+Corporate Overview
+10
+2021
+2022
+2023
+2024
+2025
+2026
+Overall 3-6%
+Corporate Overview
+Developed
+Pharmerging**
+Markets 5-8%
+Other
+Markets 2-5%
+Developed
+■Pharmerging
+Other Markets
+** Includes Argentina, Bangladesh, Brazil, Chile, China, Colombia, Egypt, Hungary, India, Indonesia, Mexico, Pakistan, Philippines, Poland, Romania,
+Russia, Saudi Arabia, South Africa, Taiwan, Turkey, Ukraine, and Vietnam.
+Markets - 3-6%
+Healthcare budgets across
+2022-2026 CAGR
+The supply chain
+disruption witnessed in
+early 2020 normalised in
+2021. However, recent
+geopolitical issues
+coupled with the spread
+of infections caused by
+new variants of COVID-19
+raises some uncertainties
+6.0%
+21-25
+3.5-6.5%
+14.4
+0.6%
+15-19
+1.5-4.5%
+115.2
+4.7%
+1,049.0
+4.9%
+132-152
+1,230-1,260
+3-6%
+2.5-5.5%
+US1
+17.9
+Total Developed Markets
+Other Developed Markets
+Australia
+3.0%
+41-45
+2-5%
+29.8
+5.4%
+32-36
+1.5-4.5%
+As the largest pharmaceutical market globally, the US
+market is expected to grow at a CAGR of 2.5-5.5%
+between 2022-2026 on account of increased volumes of
+existing innovative products coupled with contribution
+from new launches. However, medicine spending
+growth will slow over the next five years compared
+to the previous five years due to higher discounts and
+rebates, impact of patent expiry on some of the existing
+products, including biologics, and new generic and
+biosimilar competition.
+85.4
+73-93
+(2)-1%
+27.4
+5.2%
+32-36
+3-6%
+South Korea
+(0.5)%
+36.5
+Chart 2 US Pharmaceutical Spending and Growth
+of existing products. But this growth will be
+counterbalanced by patent expiry for some of the
+existing products, including high-value biologics.
+Overall growth in the Japanese pharmaceutical market
+is expected to remain flat over the next five years mainly
+due to periodic price cuts mandated by regulations and
+increased share of cheaper generics. Japan saw a muted
+rebound in medicine spending growth in 2021 compared
+2020 due to the lingering effects of the pandemic and
+price cuts.
+Chart 4 Japan Pharmaceutical Spending and Growth
+73-93
+(US$ Billion)
+85.4
+(0.5)%
+CAGR
+2017-2021
+(2)-1%
+CAGR
+2022-2026
+2021
+2026
+Pharmerging Markets¹
+Most pharmerging markets were impacted due to the
+pandemic in 2020 and the recovery was uneven across
+countries in 2021. However, a steady growth is expected
+between 2022 to 2026 driven by favourable macro-
+economic factors, improving access to healthcare systems
+and growing use of new medicines.
+Pharmerging markets are expected to grow at 5-8% CAGR
+over the next five years. While most of these markets are
+expected to record high single to low double-digit growth,
+China's slowing growth is likely to temper overall growth.
+Pharmerging markets contributed about 33% to overall
+global pharmaceutical spending in 2021, which is expected
+to increase to about 38-40% over the next five years.
+the world were under
+pressure due to the extra
+spending to fund COVID-19
+treatments as well as for
+procuring COVID-19 vaccines
+Table 4 Pharmerging Markets - Pharmaceutical Spending and Growth¹
+(US$ Billion)
+Japan¹
+Financial Statements
+Management Discussion and Analysis
+Statutory Reports
+Corporate Overview
+Chart 3 WE5 Pharmaceutical Spending and Growth
+14
+4.9%
+CAGR
+2017-2021
+os
+2021
+Pharmaceutical spending in the top five European
+markets is expected to grow at about 3-6% CAGR
+over the next five years, driven by the launch of new
+innovative products and increase in consumption
+2.5-5.5%
+(US$ Billion)
+4.8%
+CAGR
+2017-2021
+2026
+2021
+3-6%
+CAGR
+2022-2026
+(US$ Billion)
+2026
+CAGR
+2022-2026
+Canada
+Top 5 Western European
+Markets (WE5)¹
+Spain
+Corporate Overview
+Statutory Reports
+Macro-economics
+Economic growth, leading to rising per capita
+income, will remain a key driver of overall
+growth of the industry, especially in pharmerging
+markets. Coupled with changing lifestyles
+and increased health awareness, these key
+macroeconomic variables will drive the growth of
+the pharmaceutical industry globally. While these
+drivers remain intact from a long-term perspective,
+the current geopolitical situation and COVID-19
+infections may lead to some uncertainty in the
+near term.
+Key Drivers
+Financial Statements
+Management Discussion and Analysis
+Demographics
+With people across the globe living longer,
+every country is witnessing a sizeable increase
+in the population of the elderly. It is expected
+that by 2030, 1 in 6 people in the world will
+be aged 60 years or over, and this segment
+will increase from 1 Billion in 2020 to 1.4
+Billion by 2030 and 2.1 Billion by 2050. The
+number of people aged 80 years or older is
+expected to grow 3x between 2020 and 2050
+to reach 426 million. Medicine requirement
+is higher for an aging population and this is
+expected to be one of growth drivers for the
+pharmaceutical industry.
+Innovation
+Innovation continues to be a key growth driver
+for the global pharmaceutical market, especially in
+the developed market. New medicines are being
+continuously innovated, approved and marketed,
+aiding industry growth. A combination of scientific and
+digital initiatives will drive pharmaceutical innovation
+in the future. A significant amount of research and
+development (R&D) is being devoted to developing new
+products and targeted therapies using cutting-edge
+technologies. Latest generation immunology drugs,
+biologics, oncology products, orphan drugs and cell and
+gene therapies will make up an increasing proportion of
+new product development going forward.
+Access
+Governments across emerging markets are trying
+to improve access to modern medicines for its
+population, and this factor is expected to be a key
+driver for the pharmaceutical industry globally.
+Improving access implies expansion of national
+healthcare budgets, increasing insurance coverage and
+ensuring availability of medical infrastructure not only
+in larger cities, but also in the interiors of the country.
+The COVID-19 pandemic has further underscored the
+need for improving access.
+COVID-19 vaccines
+Global spending on COVID vaccines is expected to be US$250+ Billion between 2022-26, driven by the faster achievement
+of initial vaccination rates in high-income countries than in low-income countries. Newer variants of the COVID-19 virus
+are prompting many countries to emphasise booster dosing for COVID vaccines.
+COVID-19 vaccinations have been portrayed as a
+panacea against the virus and governments across the
+world have focused on vaccinating their population.
+The cumulative spending on COVID-19 vaccines over
+the next five years is estimated to be over US$250
+Billion, a majority of the expected spending to
+happen between 2021-2023. As new variants of the
+COVID-19 emerge, the importance of booster dosing
+is gaining prominence
+Over the last two years, the COVID-19 pandemic has
+underscored the deficiencies of global healthcare
+systems to cope with such pandemics. While a large
+number of COVID-19 cases overwhelmed the medical
+infrastructure in many countries, giving preference to
+COVID-19 treatments resulted in delays in elective
+surgeries and effective management of many other
+ailments. Following successive waves of COVID-19,
+healthcare systems across the world now have more
+experience in dealing with the virus, although it remains
+to be seen if this will lead to long-lasting structural
+improvements in healthcare systems globally
+7
+Oncology and Immunology will continue to witness
+higher volume growth and significant investments in
+developing new products. However, patent expiry for
+some of the products, including biologics, will partly
+offset overall value growth in these two segments
+FY22 witnessed significant emphasis by governments
+on vaccinating the population against COVID-19.
+While most of the developed economies and some
+emerging markets, including India, were able to
+vaccinate a significant portion of their population, many
+emerging and low-income countries lagged due to low
+vaccine availability and the absence of local vaccine
+manufacturing capabilities
+Scaling up Specialty. Leading with Care.
+Japan
+The demand for specific medications used for COVID-19
+treatment, which had increased substantially in 2020
+and in the early part of 2021, has now tapered off due
+to reduction in overall COVID-19 infections. Higher
+vaccination rates have also helped in lowering the
+severity of COVID-19 which, in turn, has resulted in
+lower demand for products used in COVID-19 treatment
+11
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Key Trends
+Scaling up Specialty. Leading with Care.
+Pharmerging markets (including India) will continue
+to be the main growth drivers globally for the
+pharmaceutical industry given their emphasis on
+improving access to healthcare, rise in per capita
+income and increasing insurance coverage. However,
+efforts to control overall healthcare budgets, especially
+in large markets like China (which accounts for ~48%
+of pharmerging markets) are likely to slow down overall
+growth for pharmerging markets
+Changing lifestyles and food habits will continue to
+result in higher incidence of chronic diseases globally,
+driving growth for cardiovascular, anti-diabetic and
+other such segments
+3
+Over the next five years, an average of 54-63 new
+innovative products are expected to be launched
+globally per year, i.e., an approximate 300 new products
+cumulatively over the next five years, continuing the
+run-rate of the past five years. Scientific progress in
+genomics, biomarkers and diagnostics, coupled with the
+advancement in digital interventions, are likely to play an
+important role in new product development
+4
+New product introductions over the next five years
+will include latest generation products in gene and
+cell therapy, RNA-based therapies, apart from other
+segments. The commercial success of these new
+therapies will not only be contingent on the outcome
+of their clinical trials, but also on the insurance
+reimbursement available for such products in the
+developed world. It is unlikely that these products will
+see very significant volume uptake in emerging and
+low-income markets given the inadequate medical
+insurance coverage and lower purchasing power of
+the masses
+5
+Developed markets will remain the largest contributors
+to the global pharmaceutical market given their
+higher per capita income, well-penetrated medical
+insurance coverage and government administered
+healthcare systems
+2
+13
+12
+Developed Markets
+Germany
+France
+64.6
+6.2%
+Italy
+4.5-7.5%
+42.0
+2.5-5.5%
+3-6%
+3.0%
+2-5%
+United Kingdom
+36.6
+5.9%
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+46-50
+4-7%
+48-52
+245-275
+76-96
+Top 5 Western European Markets (WE5)
+4.8%
+Table 3
+Region/Country
+USA
+Developed Markets - Pharmaceutical Spending and Growth¹
+(US$ Billion)
+2026. Spending on new specialty medicines for chronic,
+complex, and rare diseases will be the primary drivers
+of growth. However, the growth will be offset by loss of
+patent exclusivity on branded medicines, including a few
+biologics, and the increasing offtake of cheaper generics and
+biosimilar products.
+2021
+2026
+2022-2026 CAGR
+580.4
+4.9%
+685-715
+209.7
+2017-2021 CAGR
+In terms of pharmaceutical spending, most developed
+markets returned to pre-pandemic levels during 2021.
+Although the impact of COVID-19 varies across the top
+ten developed markets, growth across these markets is
+expected to remain at a low single digit between 2022-
+19.9
+17.4
+52.7
+0.9
+1,871.0
+29,306.8
+261.1
+191.0
+9,208.1
+9,559.4
+28,302.3
+9,208.1
+1,004.5
+9,559.4
+26,339.3
+26,339.3
+0.9
+10.9
+10.9
+1,890.9
+Others
+68.2
+Reimbursement of expenses (received)
+14,787.6
+14,787.6
+0.1
+Subsidiaries*
+Others
+Key management personnel
+Loans given
+Subsidiaries
+Associates**
+Loans received back / Assigned
+Subsidiaries
+Security Deposit received
+Others
+Security Deposit given
+Subsidiaries
+Investments In Subsidiary
+Subsidiaries
+Proceeds from Liquidation of Subsidiary
+69.5
+Subsidiaries
+Others
+* Includes reimbursement of settlement income.
+Subsidiaries
+Interest income
+Subsidiaries
+Interest expense
+Subsidiaries
+Lease rental and hire charges (Income)
+Subsidiaries
+Others
+Dividend income on equity shares
+Rent expense / Payment towards Lease Liabilities
+Subsidiaries
+Remuneration
+Key management personnel#
+Relatives of Key management personnel
+Year ended
+March 31, 2022
+(Annexure 'A')
+973.7
+18,204.3
+CSR
+0.1
+Subsidiaries
+Subsidiaries
+** Includes conversion of Advance (capital advance and advance towards supply of goods/services) to Loan (convertible note).
+Scaling up Specialty. Leading with Care.
+195
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Ind AS- 24 - "RELATED PARTY DISCLOSURES"
+(II) Detail of related party transaction during the year ended March 31, 2022:
+Loan written off
+Type of Transaction
+Subsidiaries
+Write off for trade receivables
+Subsidiaries
+Advance received /Assigned
+Subsidiaries
+Loan taken
+Subsidiaries
+Loan repaid
+Sale of Investment to
+863.9
+Subsidiaries
+1,043.2
+913.5
+624.2
+385.2
+1,571.5
+Revenue from contracts with customers, net of returns
+Subsidiaries
+Others
+Sale of property, plant and equipment
+Subsidiaries
+Associates
+Others
+Other operative income/Other Income
+Subsidiaries
+Others
+Receiving of service
+Subsidiaries
+Joint ventures
+Others
+Subsidiaries
+2,195.7
+1,298.7
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+in Million
+FOR THE YEAR ENDED MARCH 31, 2022
+Ind AS-24 - "RELATED PARTY DISCLOSURES"
+(II) Detail of related party transaction during the year ended March 31, 2022:
+Type of Transaction
+Year ended
+March 31, 2022
+(Annexure 'A')
+121,827.7
+* in Million
+Purchase of goods
+Others
+5,952.3
+4,879.2
+5,948.0
+4.3
+4,874.5
+4.7
+Purchase of property, plant and equipment and other intangible assets
+Year ended
+March 31, 2021
+112,117.6
+121,772.7
+112,080.9
+727.6
+Reimbursement of expenses (paid)
+11,148.3
+13,020.4
+Subsidiaries
+11,122.0
+12,975.8
+Associates
+971.4
+1.3
+Joint ventures (March 31, 2022: ₹9,849)
+0.0
+1.1
+Others
+25.0
+34.7
+Rendering of service
+932.1
+8.8
+Subsidiaries
+Others
+2,329.2
+55.0
+36.7
+351.7
+22.5
+329.1
+9.4
+17.5
+5.1
+8.0
+13.1
+65.2
+2.8
+42.5
+14.4
+22.7
+2,622.2
+3,064.8
+1,650.8
+17.2
+Year ended
+March 31, 2021
+The sales to and purchases from related parties are made on an arm's length basis. Outstanding trade balances
+at the year-end are unsecured and there have been no guarantees provided or received for any related party
+receivables or payables. As on year ended March 31, 2022, the Company has recorded impairment of receivables
+relating to amounts owed by related parties(wholly owned subsidiaries) amounting to ₹ 59.9 Million (March 31, 2021:
+59.9 Million).
+104.3
+Subsidiaries
+34,362.6
+18,748.2
+Advance from customers
+3,300.4
+1,758.6
+Subsidiaries
+3,300.4
+1,758.6
+Advance (includes capital and supply of goods/services)
+619.1
+1,757.0
+Subsidiaries
+407.9
+539.4
+Associates
+211.2
+18,748.2
+34,362.6
+0.9
+0.1
+2.2
+258.3
+190.9
+48,656.4
+51,120.3
+48,656.4
+51,120.3
+36,559.7
+1,217.6
+15,834.8
+15,834.8
+73.4
+73.4
+73.4
+73.4
+1.0
+0.1
+0.1
+36,559.7
+Accrued Interest income on loans and advances
+116.2
+18.4
+Scaling up Specialty. Leading with Care.
+197
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+INDEPENDENT AUDITOR'S REPORT
+To the Members of Sun Pharmaceutical Industries Limited
+REPORT ON THE AUDIT OF THE CONSOLIDATED IND
+AS FINANCIAL STATEMENTS
+OPINION
+We have audited the accompanying consolidated Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited (hereinafter referred to as “the Holding Company"),
+its subsidiaries (the Holding Company and its subsidiaries
+together referred to as "the Group") its associates and joint
+venture comprising of the consolidated Balance sheet as
+at March 31 2022, the consolidated Statement of Profit
+and Loss, including other comprehensive income, the
+consolidated Cash Flow Statement and the consolidated
+Statement of Changes in Equity for the year then ended,
+and notes to the consolidated financial statements,
+including a summary of significant accounting policies and
+other explanatory information (hereinafter referred to as
+"the consolidated Ind AS financial statements").
+Provision includes obligation arising from a supply contract to Sun Laboratories FZE, a wholly owned subsidiary of the
+Company amounting to ₹ 6,962.8 Million (March 31, 2021: 12,027.9 Million).
+In our opinion and to the best of our information and
+according to the explanations given to us and based on
+the consideration of reports of other auditors on separate
+financial statements and on the other financial information
+of the subsidiaries, associates and joint venture, the
+aforesaid consolidated Ind AS financial statements give
+the information required by the Companies Act, 2013, as
+amended ("the Act") in the manner so required and give
+a true and fair view in conformity with the accounting
+principles generally accepted in India, of the consolidated
+state of affairs of the Group, its associates and joint venture
+as at March 31, 2022, their consolidated profit including
+other comprehensive income, their consolidated cash flows
+and the consolidated statement of changes in equity for the
+year ended on that date.
+We conducted our audit of the consolidated Ind AS
+financial statements in accordance with the Standards
+on Auditing (SAs), as specified under section 143(10) of
+the Act. Our responsibilities under those Standards are
+further described in the 'Auditor's Responsibilities for the
+Audit of the Consolidated Financial Statements' section of
+our report. We are independent of the Group, associates
+and joint venture in accordance with the 'Code of Ethics'
+issued by the Institute of Chartered Accountants of India
+together with the ethical requirements that are relevant to
+our audit of the financial statements under the provisions
+of the Act and the Rules thereunder, and we have fulfilled
+our other ethical responsibilities in accordance with these
+requirements and the Code of Ethics. We believe that
+the audit evidence we have obtained is sufficient and
+appropriate to provide a basis for our audit opinion on the
+consolidated Ind AS financial statements.
+KEY AUDIT MATTERS
+Key audit matters are those matters that, in our professional
+judgment, were of most significance in our audit of the
+consolidated Ind AS financial statements for the financial
+year ended March 31, 2022. These matters were addressed
+in the context of our audit of the consolidated Ind AS
+financial statements as a whole and in forming our opinion
+thereon and we do not provide a separate opinion on these
+matters. For each key audit matter below, our description
+of how our audit addressed the matter is provided in
+that context.
+We have determined the matters described below to be the
+key audit matters to be communicated in our report. We
+have fulfilled the responsibilities described in the 'Auditor's
+responsibilities for the audit of the consolidated Ind AS
+financial statements' section of our report, including in
+relation to these matters. Accordingly, our audit included
+the performance of procedures designed to respond to our
+assessment of the risks of material misstatement of the
+consolidated Ind AS financial statements. The results of
+our audit procedures, including the procedures performed
+to address the matters below, provide the basis for our
+audit opinion on the accompanying consolidated Ind AS
+financial statements.
+The results of audit procedures performed by us and by
+other auditors of components not audited by us, as reported
+by them in their audit reports furnished to us, including
+those procedures performed to address the matters below,
+provide the basis for our audit opinion on the accompanying
+consolidated Ind AS financial statements.
+198
+Standalone Accounts
+BASIS FOR OPINION
+23,883.1
+b)
+1,920.8
+Subsidiaries
+116.2
+18.4
+Accrued Interest from borrowings
+142.9
+Subsidiaries
+Provisions
+Subsidiaries
+a)
+Lease liabilities
+6,962.8
+12,027.9
+6.962.8
+12,027.9
+1,818.1
+1,920.8
+Subsidiaries
+1,818.1
+142.9
+8,798.2
+24,076.2
+9,056.5
+2,254.3
+3,085.0
+2,254.3
+44.7
+34.8
+13.5
+12.1
+31.2
+3,085.0
+22.7
+263.4
+262.2
+263.4
+100.0
+100.0
+100.0
+100.0
+202.3
+262.2
+165.4
+521.4
+521.4
+104.3
+2,925.6
+2,925.6
+85,611.2
+98,473.3
+85,611.2
+98,473.3
+88,290.0
+219.1
+65,020.3
+65,020.3
+126.9
+126.9
+135.4
+383.4
+135.4
+383.4
+219.1
+88,290.0
+18,204.3
+140.5
+61.8
+Key management personnel
+Others
+Loan taken
+Subsidiaries
+Loan given
+Subsidiaries
+Security Deposit given
+Subsidiaries
+Subsidiaries
+Security Deposit Received
+Others
+Other liabilities
+34,528.1
+34,527.7
+58,416.1
+58,385.8
+17.4
+0.0
+0.4
+12.9
+Subsidiaries
+130.4
+Payable
+Associates (March 31, 2022: 5,623)
+35.0
+# Key Management Personnel (KMP) and Relatives of KMP who are under the employment of the Company are entitled to post employment
+benefits and other long term employee benefits recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these
+employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above and there is no
+Share-based payments to Key Management Personnel of Company.
+196
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone Accounts
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Others
+FOR THE YEAR ENDED MARCH 31, 2022
+(Annexure 'A')
+As at
+March 31, 2022
+in Million
+As at
+March 31, 2021
+Receivables
+Subsidiaries
+Key management personnel
+Ind AS-24 - "RELATED PARTY DISCLOSURES"
+Balance outstanding as at the end of the year
+Financial Statements
+AO Ranbaxy
+Corporate Overview
+* in Million
+Less than 1 year
+1-2 years
+2-3 years
+More than 3
+years
+As at
+March 31, 2022
+2,299.2
+839.6
+233.0
+51.7
+165.9
+2,299.2
+The title deeds are in
+the name of erstwhile
+companies that were
+merged with the Company
+under relevant provisions
+of the Companies Act,
+1956/2013 in terms of
+approval of the Honorable
+High Courts / National
+Company Law Tribunal of
+respective states.
+839.6
+217.6
+Less than 1 year
+1-2 years
+2-3 years
+More than
+3 years
+3,423.5
+165.9
+3,589.4
+* in Million
+As at
+March 31, 2021
+3,484.5
+679.4
+189.7
+233.0
+Projects temporarily suspended
+Projects in progress
+Ageing of Capital work-in-progress
+No
+08-Sep-17
+located thereon
+Freehold Land
+3.6
+Tamilnadu Dadha
+No
+01-Aug-97
+including building
+Pharamaceuticals Limited
+located thereon
+Building
+4.1
+Various
+Building
+89.9
+Sun Pharma Global FZE
+No
+No
+08-Sep-17
+01-Oct-21
+23. Details of Capital work-in-progress and Intangible assets under development:
+190
+Ageing of Capital work-in-progress
+Projects in progress
+Projects temporarily suspended
+74.9
+Solrex Pharmaceuticals
+Company
+163.5
+3,484.5
+Others
+896.3
+165.9
+165.9
+To be completed in
+Less than
+1 year
+1-2 years
+2-3 years
+More than
+3 years
+Overdue Capital work-in-progress
+Projects in progress
+Formulation
+Projects temporarily suspended
+590.0
+Active Pharmaceutical Ingredient
+Others
+124.7
+17.0
+16.2
+1.4
+Projects temporarily suspended
+730.9
+208.8
+163.5
+163.5
+Ageing of Intangible assets under development
+Projects in progress
+Less than
+1 year
+190.4
+1.5
+1.5
+144.9
+679.4
+189.7
+238.4
+4,592.0
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone Accounts
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+* in Million
+To be completed in
+Less than
+1-2 years
+2-3 years
+1 year
+More than
+3 years
+As at
+March 31, 2022
+Overdue Capital work-in-progress
+Projects in progress
+Formulation
+749.9
+Active Pharmaceutical Ingredient
+Others
+144.9
+749.9
+4,428.5
+163.5
+1-2 years
+including building
+Freehold Land
+1.15
+735.2%
+Change due to
+exceptional items
+(41.67%)
+351.10%
+NA
+1.68
+1.63
+3.1%
+f)
+Trade receivables turnover ratio in no. of days = (Average
+trade receivables * no. of days) / Revenue from contracts
+with customers
+9.58
+127
+(23.8%)
+g)
+Trade payable turnover ratio in no. of days = (Average trade
+payable * no. of days) / Purchases during the year
+219
+290
+(24.7%)
+h)
+Net capital turnover ratio = Revenue from contracts with
+customers (Current assets - Current liabilities)
+Change due to
+reduction in
+current assets
+(38.60)
+5.03
+167
+Change due to
+reduction in
+borrowings
+(24.4%)
+0.27
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone Accounts
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+14
+Ratios
+Ratios and Formulae
+a)
+b)
+Current ratio = Current assets / Current liabilities
+Debt equity ratio = (Long-term borrowings + Short-term
+borrowings and lease liabilities) / Total equity
+c)
+d)
+Debt service coverage ratio = (Profit/(loss) after tax but
+before finance costs, depreciation and amortisation and
+exceptional items) / (Finance costs + Short-term borrowings
++ Short term Lease liabilities)
+Return on equity ratio (%) = Net profit/(loss) after tax /
+Equity share capital
+e) Inventory turnover ratio = (Cost of materials consumed
++ Purchase of stock-in-trade + Changes in inventories of
+finished goods, stock-in-trade and work-in-progress) /
+Average inventory
+Remarks
+As at
+March 31, 2022
+0.96
+As at
+Variance (in %)
+March 31, 2021
+1.28
+(24.9%)
+0.21
+NA
+95.9
+i)
+Change due to
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Ultimate Beneficiaries. However, the Company, as a part of its treasury operations, invests/advances loans to fund
+the operations of its subsidiaries/associates/ joint venture which have further utilised these funds for their general
+corporate purposes/ working capital, etc. within the consolidated group of the Company and in the ordinary course
+of business. These transactions are done on an arms' length basis following a due approval process.
+Further, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities
+("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall,
+whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by
+or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf
+of the Ultimate Beneficiaries.
+22. Details of property not in the name of the Company as at March 31, 2022
+Particulars
+Gross carrying
+value (in Million)
+Title deeds held
+in the name of
+Whether title
+deed holder is a
+promoter, director
+or relative of
+promoter/director
+or employee of
+189
+Property held
+since which date
+promoter/director
+Freehold Land
+Freehold Land
+Leasehold Land
+2.7
+Ranbaxy Drugs Limited
+No
+123.1
+Ranbaxy Laboratories Limited
+No
+2.9 Ranbaxy Laboratories Limited
+No
+24-Mar-15
+24-Mar-15
+24-Mar-15
+Reason for not being held in
+the name of the company
+Scaling up Specialty. Leading with Care.
+21. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
+sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
+("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
+whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
+on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
+20 The Company has not been declared wilful defaulter by any bank or financial institution or government or any other
+government authorities.
+(0.64%)
+6.02%
+NA
+exceptional items
+j)
+Return on capital employed (%) = Net Profit/(loss) after tax /
+(Total assets - total liabilities - intangible assets - intangible
+assets under development - Goodwill + Long term
+Statutory Reports
+(0.41%)
+2.92%
+(114.0%)
+borrowings + Short term borrowings + Lease liabilities)
+k)
+Return on investment (%) = Income generated from FVTPL
+3.33%
+3.72%
+(10.5%)
+Investment / Weighted average FVTPL investment
+15
+No proceeding have been initiated or pending against the Company under the Benami Transactions (Prohibitions) Act,
+1988 (45 of 1988) and the Rules made thereunder.
+16 The Company has not traded or invested in crypto currency or virtual currency during the financial year.
+17 The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either
+severally or jointly with any other person.
+18
+19
+The Company does not have any transaction which is not recorded in the books of accounts that has been
+surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
+search or survey or any other relevant provisions of the Income Tax Act, 1961).
+The Company has not been sanctioned working capital limits from banks or financial institutions during any point of
+time of the year on the basis of security of current assets.
+Net profit ratio (%) = Net profit/(loss) after tax / Total
+revenue from operations
+2-3 years
+Change due to
+exceptional items
+165.9
+1,062.2
+Ranbaxy Pharmaceuticals (Pty) Ltd
+Sonke Pharmaceuticals Proprietary Limited
+Sun Pharma Laboratorios, S.L.U. (Formerly known as Laboratorios
+Ranbaxy, S.L.U.)
+Sun Pharma UK Limited (Formerly known as Ranbaxy (U.K.) Limited)
+Sun Pharma Holdings UK Limited (Formerly known as Ranbaxy Holdings
+(U.K.) Limited)
+Ranbaxy Inc.
+Ranbaxy (Thailand) Co., Ltd.
+Ohm Laboratories, Inc.
+Ranbaxy Signature LLC
+Sun Pharmaceuticals Morocco LLC
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+Insite Vision Incorporated (Refer Footnote 8)
+Sun Pharmaceutical Medicare Limited
+JSC Biosintez
+Sun Pharmaceuticals Holdings USA, Inc.
+Zenotech Inc
+Ranbaxy South Africa (Pty) Ltd
+Zenotech Farmaceutica Do Brasil Ltda
+Sun Pharma Distributors Limited
+Kayaku Co., Ltd. (Refer Footnote 9)
+Realstone Infra Limited
+Sun Pharma (Shanghai) Limited (Refer Footnote 2)
+Sun Pharma Japan Technical Operations Limited (Refer Footnote 1)
+Alchemee, LLC (Refer Footnote 1)
+The Proactiv Company Holdings, Inc. (Formerly known as Galderma
+Holdings, Inc.) (Refer Footnote 1)
+Proactiv YK (Refer Footnote 1)
+The Proactiv Company KK (Refer Footnote 1)
+The Proactiv Company Corporation (Refer Footnote 1)
+Sun Pharma Global FZE. (Refer Footnote 11)
+Scaling up Specialty. Leading with Care.
+193
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Sun Pharmaceuticals (EZ) Limited (Refer Footnote 2)
+Terapia SA
+Ranbaxy (Poland) Sp. Z O.O.
+Sun Pharma Italia srl (Formerly known as Ranbaxy Italia S.P.A.)
+Sun Pharmaceutical Industries S.A.C.
+Aditya Acquisition Company Ltd.
+Sun Pharmaceutical Industries (Europe) B.V.
+Sun Pharmaceuticals Germany GmbH
+Sun Pharmaceuticals France (Refer Footnote 4)
+Sun Pharmaceuticals SA (Pty) Ltd
+Aquinox Pharmaceuticals (Canada) Inc (Refer Footnote 2 & 7)
+Sun Pharma Philippines, Inc.
+Sun Pharmaceuticals Korea Ltd.(Refer Footnote 4)
+Caraco Pharmaceuticals Private Limited
+Sun Pharma Japan Ltd.
+Sun Laboratories FZE
+Taro Pharmaceutical Industries Ltd. (TARO) (Refer Footnote 5)
+Taro Pharmaceuticals Inc.
+Taro Pharmaceuticals U.S.A., Inc.
+Taro Pharmaceuticals North America, Inc.
+Taro Pharmaceuticals Europe B.V.
+Taro International Ltd.
+3 Skyline LLC
+One Commerce Drive LLC
+Mutual Pharmaceutical Company Inc. (Refer Footnote 8)
+2 Independence Way LLC
+Universal Enterprises Private Limited
+Sun Pharma Switzerland Limited
+Sun Pharma East Africa Limited
+Pharmalucence, Inc. (Refer Footnote 8)
+PI Real Estate Ventures, LLC
+Sun Pharma ANZ Pty Ltd
+Ranbaxy Farmaceutica Ltda.
+Sun Pharma Canada Inc.
+Sun Pharma Egypt LLC
+Rexcel Egypt LLC
+Office Pharmaceutique Industriel Et Hospitalier (Refer Footnote 6)
+Basics GmbH
+Ranbaxy Ireland Limited (Refer Footnote 3)
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries (Australia) Pty Limited
+FOR THE YEAR ENDED MARCH 31, 2022
+Names of related parties where there are transactions and description of relationships
+Kism Textiles Private Limited
+Alfa Infraprop Private Limited
+Airamatrix Pvt Ltd
+Shantilal Shanghvi Foundation
+Footnote
+1. Incorporated / Acquired during the year.
+2. Incorporated / Acquired during the previous year.
+3.
+Dissolved/Liquidated during the year.
+4.
+Dissolved / Liquidated during the previous year.
+Fortune Integrated Assets Finance Ltd
+(Annexure 'A')
+Non-Executive Director and Non-Independent Director
+Wholetime Director
+Chairman and Non-Executive Director (Non-Independent)
+Wholetime Director
+5. Holds voting power of 85.66% (beneficial ownership 78.48%) [March 31, 2021 85.18% (beneficial ownership 77.78%)].
+6.
+Office Pharmaceutique Industriel Et Hospitalier has been merged with Sun Pharma France (Formerly Known as Ranbaxy Pharmacie
+Generiques) w.e.f. April 01, 2020.
+7. Aquinox Pharmaceuticals (Canada) Inc has been merged with Taro Pharmaceuticals Inc. w.e.f. July 31, 2020.
+8. Insite Vision Incorporated, Mutual Pharmaceutical Company Inc and Pharmalucence, Inc. has been merged with Sun Pharmaceutical
+Industries, Inc. w.e.f. April 01, 2020.
+9. With effect from September 01, 2021 Kayaku Co. Ltd. has been ceased to be the subsidiary of the company.
+10. With effect from January 27, 2022 Taro Pharmaceutical Laboratories Inc. was merged into Taro Pharmaceuticals U.S.A., Inc.
+11. Sun Pharma Global FZE is under dissolution.
+194
+More than
+3 years
+Managing Director
+PV Power Technologies Private Limited
+United Medisales Private Limited
+Sidmak Laboratories (India) Private Limited
+b
+Joint Ventures
+C
+Artes Biotechnology GmbH
+Associate
+Medinstill Development LLC
+Dy Py Institute LLC
+Intact Solutions, LLC
+d
+Key Management Personnel (KMP)
+Dilip Shantilal Shanghvi
+Sudhir Vrundavandas Valia
+Sailesh Trambaklal Desai
+Israel Makov
+Kalyanasundaram lyer Natesan Subramanian
+Relatives of Key Management Personnel
+e
+Aalok Shanghvi
+f
+Vidhi Shanghvi
+Others (Entities in which the KMP and relatives of KMP have
+control or Significant influence)
+Makov Associates Limited
+Sun Pharma Advanced Research Company Limited.
+Sun Petrochemicals Private Limited
+Ind AS- 24 - "RELATED PARTY DISCLOSURES"
+Alkaloida Chemical Company Zrt.
+Taro Pharmaceutical Laboratories Inc (Refer Footnote 10)
+Dusa Pharmaceuticals, Inc.
+Chattem Chemicals Inc.
+Scaling up Specialty. Leading with Care.
+191
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Overdue Intangible assets under development
+Projects in progress
+Others
+Overdue Intangible assets under development
+Projects in progress
+Others
+* in Million
+To be completed in
+Less than
+1 year
+1-2 years
+2-3 years
+More than
+3 years
+As at
+March 31, 2022
+32.8
+32.8
+To be completed in
+Less than
+1 year
+1-2 years
+2-3 years
+More than
+3 years
+149.8
+149.8
+6,311.8
+2.0
+4,175.0
+4,175.0
+The Taro Development Corporation
+* in Million
+As at
+March 31, 2021
+780.4
+141.7
+17.6
+163.5
+1,103.2
+* in Million
+As at
+March 31, 2022
+459.8
+459.8
+1,640.4
+1,640.4
+78.9
+78.9
+2,517.9
+2,517.9
+4,697.0
+4,697.0
+* in Million
+Less than
+1 year
+2-3 years
+More than
+3 years
+As at
+March 31, 2021
+Ageing of Intangible assets under development
+Projects in progress
+1,771.6
+1,771.6
+142.2
+142.2
+223.0
+223.0
+6,311.8
+2.0
+1-2 years
+* in Million
+(I) Names of related parties and description of relationships
+Subsidiaries
+(Annexure 'A')
+a
+Green Eco Development Centre Limited
+Sun Pharmaceutical (Bangladesh) Limited
+Sun Pharmaceutical Industries, Inc.
+Sun Farmaceutica Do Brasil Ltda.
+Sun Pharma De Mexico S.A. DE C.V.
+SPIL De Mexico S.A. DE C.V. (Refer Footnote 3)
+Sun Pharmaceutical Peru S.A.C.
+OOO "Sun Pharmaceutical Industries" Limited
+Sun Pharma De Venezuela, C.A.
+Sun Pharma Laboratories Limited
+Faststone Mercantile Company Private Limited
+Neetnav Real Estate Private Limited
+Skisen Labs Private Limited
+Sun Pharma Holdings
+Softdeal Pharmaceuticals Private Limited (Formerly known as
+Softdeal Trading Company Private Limited)
+Sun Pharma (Netherlands) B.V.
+Sun Pharma France (Formerly Known as Ranbaxy Pharmacie
+Generiques)
+Ranbaxy (Malaysia) Sdn. Bhd.
+Ranbaxy Nigeria Limited
+32.8
+32.8
+Zenotech Laboratories Limited
+Foundation for Disease Elimination and Control of India
+Ind AS-24 - "RELATED PARTY DISCLOSURES"
+FOR THE YEAR ENDED MARCH 31, 2022
+Realstone Multitrade Private Limited
+Standalone Accounts
+151.8
+151.8
+As at
+March 31, 2021
+NOTES TO THE STANDALONE FINANCIAL STATEMENTS
+24. Relationship with Struck off Companies
+The Company does not have any transactions and balances with companies which are struck off except shares held by
+8 shareholders holding 7,653 shares (March 31, 2021 - 7,833 shares) having face value of 1 per share.
+25. Figures for previous year have been regrouped / reclassified wherever considered necessary.
+As per our report of even date
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+For S RBC & CO LLP
+192
+Mumbai, May 30, 2022
+Financial Statements
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 30, 2022
+Statutory Reports
+ANOOP DESHPANDE
+Company Secretary
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+Managing Director
+(DIN : 00005588)
+DILIP S. SHANGHVI
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+207
+Scaling up Specialty. Leading with Care.
+CONSOLIDATED BALANCE SHEET
+Membership Number: 105754
+UDIN:22105754AJVROF1289
+Place of Signature: Mumbai
+Date: May 30, 2022
+statements may become inadequate because of changes
+in conditions, or that the degree of compliance with the
+policies or procedures may deteriorate.
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+For SR BC & CO LLP
+Our report under Section 143(3)(i) of the Act on the
+adequacy and operating effectiveness of the internal
+financial controls over financial reporting with reference to
+these consolidated Ind AS financial Ind AS statements of
+the Holding Company, insofar as it relates to 1 subsidiary
+company, which is company incorporated in India, is based
+on the corresponding reports of the auditors of such
+subsidiary incorporated in India.
+OTHER MATTERS
+OPINION
+AS AT MARCH 31, 2022
+In our opinion, the Holding Company and its subsidiary
+companies, which are companies incorporated in India,
+have, maintained in all material respects, adequate internal
+financial controls over financial reporting with reference
+to these consolidated Ind AS financial statements and
+such internal financial controls over financial reporting
+with reference to these consolidated Ind AS financial
+statements were operating effectively as at March 31,
+2022, based on the internal control over financial reporting
+criteria established by the Holding Company considering
+the essential components of internal control stated in the
+Guidance Note on Audit of Internal Financial Controls Over
+Financial Reporting issued by the Institute of Chartered
+Accountants of India.
+per Paul Alvares
+Partner
+Particulars
+Notes
+(1) Non-current assets
+9,365.2
+7,975.1
+Because of the inherent limitations of internal financial
+controls over financial reporting with reference to these
+consolidated Ind AS financial statements, including the
+possibility of collusion or improper management override
+of controls, material misstatements due to error or fraud
+may occur and not be detected. Also, projections of any
+evaluation of the internal financial controls over financial
+reporting with reference to these consolidated Ind AS
+financial statements to future periods are subject to the risk
+that the internal financial control over financial reporting
+with reference to these consolidated Ind AS financial
+102,349.9
+103,713.8
+3A (I) & (II)
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2022
+(h) Financial assets
+(g) Investment in joint venture
+(f) Investment in associates
+(e) Intangible assets under development
+(d) Other intangible assets
+(c) Goodwill (Net)
+(b) Capital work-in-progress
+(a) Property, plant and equipment
+ASSETS
+INHERENT LIMITATIONS OF INTERNAL FINANCIAL
+CONTROLS OVER FINANCIAL REPORTING WITH
+REFERENCE TO THESE CONSOLIDATED IND AS
+FINANCIAL STATEMENTS
+For SR BC & CO LLP
+Consolidated Accounts
+per Paul Alvares
+ICAI Firm Registration Number: 324982E/E300003
+Chartered Accountants
+i(c)
+i(c)
+Clause number of the CARO report
+which is qualified or is adverse
+i(c), iii(c), iii(e)
+Holding Company
+Subsidiary
+Subsidiary
+L24230GJ1993PLC019050
+U25200MH1997PLC240268
+U45200MH2010PTC201611
+Nature of relationship
+CIN
+Neetnav Real Estate Private Limited
+Sun Pharma Laboratories Limited
+Sun Pharmaceutical Industries Limited
+Name
+xxi. Qualifications or adverse remarks by the respective auditors in the Companies (Auditors Report) Order (CARO)
+reports of the companies included in the consolidated financial statements are:
+47
+In terms of the information and explanations sought by us and given by the company and the books of account and records
+examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:
+Partner
+MEANING OF INTERNAL FINANCIAL CONTROLS
+OVER FINANCIAL REPORTING WITH REFERENCE TO
+THESE CONSOLIDATED FINANCIAL STATEMENTS
+A company's internal financial control over financial
+reporting with reference to these consolidated Ind AS
+financial statements is a process designed to provide
+reasonable assurance regarding the reliability of financial
+reporting and the preparation of financial statements for
+external purposes in accordance with generally accepted
+accounting principles. A company's internal financial
+control over financial reporting with reference to these
+consolidated financial statements includes those policies
+and procedures that (1) pertain to the maintenance of
+records that, in reasonable detail, accurately and fairly
+reflect the transactions and dispositions of the assets
+of the company; (2) provide reasonable assurance
+that transactions are recorded as necessary to permit
+preparation of financial statements in accordance with
+generally accepted accounting principles, and that receipts
+and expenditures of the company are being made only
+in accordance with authorisations of management and
+directors of the company; and (3) provide reasonable
+assurance regarding prevention or timely detection
+of unauthorised acquisition, use, or disposition of the
+company's assets that could have a material effect on the
+financial statements.
+Membership Number: 105754
+Place of Signature: Mumbai
+Financial Statements
+Statutory Reports
+Corporate Overview
+206
+We believe that the audit evidence we have obtained and
+the audit evidence obtained by the other auditors in terms
+of their reports referred to in the Other Matters paragraph
+below, is sufficient and appropriate to provide a basis for
+our audit opinion on the internal financial controls over
+financial reporting with reference to these consolidated Ind
+AS financial statements.
+Our audit involves performing procedures to obtain audit
+evidence about the adequacy of the internal financial
+controls over financial reporting with reference to these
+consolidated Ind AS financial statements and their operating
+effectiveness. Our audit of internal financial controls over
+financial reporting included obtaining an understanding
+of internal financial controls over financial reporting
+with reference to these consolidated Ind AS financial
+statements, assessing the risk that a material weakness
+exists, and testing and evaluating the design and operating
+effectiveness of internal control based on the assessed
+risk. The procedures selected depend on the auditor's
+judgement, including the assessment of the risks of material
+misstatement of the financial statements, whether due to
+fraud or error.
+based on our audit. We conducted our audit in accordance
+with the Guidance Note on Audit of Internal Financial
+Controls Over Financial Reporting (the "Guidance Note")
+and the Standards on Auditing, both, issued by Institute
+of Chartered Accountants of India, and deemed to be
+prescribed under section 143(10) of the Act, to the extent
+applicable to an audit of internal financial controls. Those
+Standards and the Guidance Note require that we comply
+with ethical requirements and plan and perform the audit
+to obtain reasonable assurance about whether adequate
+internal financial controls over financial reporting with
+reference to these consolidated Ind AS financial statements
+was established and maintained and if such controls
+operated effectively in all material respects.
+Our responsibility is to express an opinion on the company's
+internal financial controls over financial reporting with
+reference to these consolidated Ind AS financial statements
+AUDITOR'S RESPONSIBILITY
+The respective Board of Directors of the Holding Company,
+its subsidiary companies, which are companies incorporated
+in India, are responsible for establishing and maintaining
+internal financial controls based on the internal control
+over financial reporting criteria established by the Holding
+Company considering the essential components of internal
+control stated in the Guidance Note on Audit of Internal
+Financial Controls Over Financial Reporting issued by
+the Institute of Chartered Accountants of India. These
+responsibilities include the design, implementation and
+maintenance of adequate internal financial controls that
+were operating effectively for ensuring the orderly and
+efficient conduct of its business, including adherence to
+the respective company's policies, the safeguarding of its
+assets, the prevention and detection of frauds and errors,
+the accuracy and completeness of the accounting records,
+and the timely preparation of reliable financial information,
+as required under the Act.
+MANAGEMENT'S RESPONSIBILITY FOR INTERNAL
+FINANCIAL CONTROLS
+REPORT ON THE INTERNAL FINANCIAL CONTROLS
+UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
+143 OF THE COMPANIES ACT, 2013 (“THE ACT")
+In conjunction with our audit of the consolidated Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited as of and for the year ended March 31, 2022, we
+have audited the internal financial controls over financial
+reporting of Sun Pharmaceutical Industries Limited
+(hereinafter referred to as the "Holding Company") and its
+subsidiary companies, which are companies incorporated in
+India, as of that date.
+ANNEXURE 2 TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE CONSOLIDATED
+IND AS FINANCIAL STATEMENTS OF SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+205
+Scaling up Specialty. Leading with Care.
+Date: May 30, 2022
+UDIN: 22105754AJVROF1289
+65,494.5
+(iii) Cash and cash equivalents
+3B
+15
+(iv) Bank balances other than (iii) above
+62,730.3
+45,082.5
+14
+RE: SUN PHARMACEUTICALS INDUSTRIES LIMITED (THE "COMPANY")
+90,614.0
+5,251.0
+105,928.9
+31,300.6
+76,339.4
+12
+89,970.2
+89,968.1
+11
+(ii) Trade receivables
+13
+1,724.8
+(v) Loans
+16
+208
+676,667.3
+697,998.7
+TOTAL ASSETS
+304,420.8
+350,149.8
+Total current assets
+18,761.5
+18,855.5
+18
+(c) Other current assets
+8,759.3
+7,024.7
+17
+(vi) Other financial assets
+560.1
+1,699.7
+Investments
+(i)
+(b) Financial assets
+(a) Inventories
+7.1
+62,218.3
+49,485.7
+6
+17
+(ii) Loans
+Investments
+(i)
+278.3
+340.2
+2,327.3
+2,320.6
+45
+6,303.1
+4,892.9
+50,303.5
+55,389.1
+7.1
+62,876.4
+(iii) Other financial assets
+1,259.0
+372,246.5
+347,848.9
+(2) Current assets
+Total non-current assets
+5,367.4
+2,888.4
+10
+(k) Other non-current assets
+34,327.8
+25,115.3
+9
+(j) Income tax assets (Net)
+35,564.4
+28,967.2
+50
+(i) Deferred tax assets (Net)
+957.8
+8
+ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE UNDER THE
+HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS"
+Corporate Overview
+Financial Statements
+Obtained list of ongoing tax litigations from management along with
+their assessment of the cases based on past precedents, judgements
+and matters in the jurisdiction, legal opinions sought by management,
+correspondences with tax department etc.
+Evaluated the design and tested the operating effectiveness of controls
+in respect of the identification and evaluation of tax litigations/deferred
+tax and the recording and re-assessment of the related liabilities/assets
+and provisions and disclosures.
+•
+•
+•
+•
+•
+Engaged tax specialists, to evaluate management's assessment of
+the outcome of these litigations. Our specialists considered legal
+precedence and other rulings in evaluating management's position on
+these tax litigations.
+Recognition of deferred tax assets involves the assessment
+of its recoverability within the allowed time frame
+requiring significant estimate of the financial projections,
+availability of sufficient taxable income in the future and
+also involving significant judgements in the interpretation
+of tax regulations and tax positions adopted by the Group.
+Considering the judgement involved in determining the
+recovery of deferred tax assets, the matter is considered a
+Key Audit Matter.
+The Group has significant tax litigations for which the Group
+assesses the outcome on a case-to-case basis considering
+the underlying facts of each tax litigation. Adverse
+outcomes could significantly impact the Group's reported
+results and balance sheet position.
+Tax litigations and recognition of deferred tax assets (as described in note 39 and 50 of the consolidated Ind AS financial statements)
+How our audit addressed the key audit matter
+Key audit matter
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+199
+Scaling up Specialty. Leading with Care.
+The assessment of outcome of litigations involves
+significant judgement which is dependent on the facts of
+each case, supporting judicial precedents and legal opinions
+of external and internal legal counsels and hence the matter
+has been considered as a Key Audit Matter.
+Evaluated the disclosures in the consolidated Ind AS
+financial statements.
+Tested management's assumptions including forecasts and sensitivity
+analysis in respect of recoverability of deferred taxes on unabsorbed
+depreciation/carry forward losses/Minimum Alternate Tax (MAT) credit.
+Verified disclosures of the tax positions, tax loss carry forwards and tax
+litigations in the consolidated Ind AS financial statements.
+The Group has related party transactions which include,
+amongst others, sale and purchase of goods/services to
+its associates, joint venture and other related parties and
+lending, investment and borrowing to its associates and
+joint venture.
+Statutory Reports
+Corporate Overview
+200
+RESPONSIBILITIES OF MANAGEMENT FOR THE
+CONSOLIDATED IND AS FINANCIAL STATEMENTS
+The Holding Company's Board of Directors is responsible
+for the preparation and presentation of these consolidated
+Ind AS financial statements in terms of the requirements
+of the Act that give a true and fair view of the consolidated
+financial position, consolidated financial performance
+including other comprehensive income, consolidated cash
+flows and consolidated statement of changes in equity
+of the Group including its associates and joint venture
+in accordance with the accounting principles generally
+accepted in India, including the Indian Accounting Standards
+(Ind AS) specified under section 133 of the Act read with
+the Companies (Indian Accounting Standards) Rules, 2015,
+as amended. The respective Board of Directors of the
+companies included in the Group and of its associates and
+joint venture are responsible for maintenance of adequate
+accounting records in accordance with the provisions of
+the Act for safeguarding of the assets of the Group and
+of its associates and joint venture and for preventing and
+detecting frauds and other irregularities; selection and
+In connection with our audit of the consolidated Ind AS
+financial statements, our responsibility is to read the other
+information and, in doing so, consider whether such other
+information is materially inconsistent with the consolidated
+Ind AS financial statements or our knowledge obtained in
+the audit or otherwise appears to be materially misstated.
+If, based on the work we have performed, we conclude that
+there is a material misstatement of this other information,
+we are required to report that fact. We have nothing to
+report in this regard.
+Our opinion on the consolidated Ind AS financial statements
+does not cover the other information and we do not express
+any form of assurance conclusion thereon.
+The Holding Company's Board of Directors is responsible
+for the other information. The other information comprises
+the information included in the Annual report, but does not
+include the consolidated Ind AS financial statements and
+our auditor's report thereon.
+Identification and disclosure of related parties (as described in note 57 of the consolidated Ind AS financial statements)
+OTHER INFORMATION
+• Read declarations of related party transactions given to the Board of
+Directors and Audit Committee.
+• Read minutes of the meetings of the Board of Directors and
+Audit Committee.
+Evaluated the design and tested the operating effectiveness of controls
+over identification and disclosure of related party transactions.
+Obtained a list of related parties from the Group's management
+and traced the related parties to declarations given by directors,
+where applicable, and to note 57 of the consolidated Ind AS
+financial statements.
+•
+•
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+Identification and disclosure of related parties was a
+significant area of focus and hence considered it as a
+Key Audit Matter.
+Verified the disclosures in the consolidated Ind AS financial statements
+for compliance with Ind AS 24.
+Obtained and evaluated management's sensitivity analysis to ascertain
+the impact of changes in key assumptions.
+Obtained the Group's computation of recoverable amount and tested
+the mathematical accuracy and reasonableness of key assumptions.
+Evaluated the design and tested the operating effectiveness of
+management's controls in assessing the carrying value of goodwill and
+intangible assets.
+Obtained a list of litigations from the Group's in-house legal counsel;
+identified material litigations from the aforementioned list and
+performed inquiries with the said counsel; obtained and read the
+underlying documents to assess the assumptions used by management
+in arriving at the conclusions.
+Evaluated the design and tested the operating effectiveness of
+controls in respect of the identification and evaluation of litigations,
+the recording/re-assessment of the related liabilities, provisions
+and disclosures.
+•
+•
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+These deductions involve significant judgement and
+estimation, in particular the accruals associated with the
+revenue transactions pertaining to business of United States
+and hence is considered as a Key Audit Matter.
+Rebates, discounts, chargebacks, returns and other allowances
+The Group generates revenue across various geographies
+through commercial arrangements prevalent in those
+geographies. These commercial arrangements involve
+rebates, discounts, chargebacks, right to return and other
+allowances, which are deducted from the gross revenue to
+arrive at Revenue from Operations.
+• Circulated, obtained and read legal confirmations from Group's external
+legal counsels in respect of material litigations and considered that in
+our assessment.
+Considering the judgement involved in determining the
+need to make a provision or disclose as contingent liability,
+the matter is considered a Key Audit Matter.
+Litigations (as described in Note 39 of the consolidated Ind AS financial statements)
+How our audit addressed the key audit matter
+Key audit matter
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+The Group is involved in various legal proceedings including
+product liability, contracts, employment claims, Department
+of Justice (DOJ) investigations, anti-trust and other
+regulatory matters relating to conduct of its business.
+The Group assesses the need to make provision or to
+disclose a contingent liability on a case-to-case basis
+considering the underlying facts of each litigation.
+The eventual outcome of the litigations is uncertain
+and estimation at balance sheet date involves extensive
+judgement of management including input from legal
+counsel due to complexity of each litigation. Adverse
+outcomes could significantly impact the Group's reported
+results and balance sheet position.
+•
+Verified the disclosures related to provisions and contingent liabilities in
+the consolidated Ind AS financial statements to assess consistency with
+underlying documents.
+(as described in note 53 of the consolidated Ind AS financial statements)
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+•
+•
+•
+•
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+Significant judgements are used to estimate the recoverable
+amount of these intangible assets and goodwill and is hence
+considered as a Key Audit Matter.
+The Group has significant intangible assets, comprising
+acquired trademarks, product intangibles and goodwill. The
+Group conducts an annual impairment testing of goodwill
+and intangible assets.
+Goodwill and other intangible assets (as described in note 3B and 47 of the consolidated Ind AS financial statements)
+• Evaluated adequacy of disclosures as required by Ind AS 115.
+Compared the assumptions in respect of rebates, discounts, allowances
+and returns to current payment trends.
+•
+• Analysed the historical pattern of chargebacks, the inventory
+information and performed retrospective reviews in order to validate
+management's assumption.
+Evaluated the key assumptions used by the Group by comparing it with
+prior years.
+Obtained and evaluated management's computations for accruals under
+respective contractual arrangements.
+•
+•
+• Assessed and tested the design and operating effectiveness of the
+Group's controls over the completeness, recognition and measurement
+of accrual.
+Financial Statements
+Consolidated Accounts
+Consolidated Accounts
+In preparing the consolidated Ind AS financial statements,
+the respective Board of Directors of the companies included
+in the Group and of its associates and joint venture are
+responsible for assessing the ability of the Group and of its
+associates and joint venture to continue as a going concern,
+disclosing, as applicable, matters related to going concern
+and using the going concern basis of accounting unless
+management either intends to liquidate the Group or to
+cease operations, or has no realistic alternative but to do so.
+Scaling up Specialty. Leading with Care.
+The respective managements of the
+Holding Company and its subsidiaries,
+associates and joint venture which
+are companies incorporated in India
+whose financial statements have been
+audited under the Act have represented
+to us and the other auditors of such
+subsidiaries, associates and joint
+iv. a)
+There has been no delay in transferring
+amounts, required to be transferred, to the
+Investor Education and Protection Fund
+by the Holding Company, its subsidiaries,
+associates and joint venture, incorporated in
+India, except a sum of 1.2 Million, which is
+held in abeyance due to pending legal cases.
+Provision has been made in the consolidated
+Ind AS financial statements, as required
+under the applicable law or accounting
+standards, for material foreseeable losses,
+if any, on long-term contracts including
+derivative contracts - Refer (a) Note 23
+and 28 to the consolidated Ind AS financial
+statements in respect of such items as it
+relates to the Group, its associates and joint
+venture and (b) the Group's share of net loss
+in respect of its associates and joint venture;
+on its consolidated financial position of the
+Group, its associates and joint venture in its
+consolidated Ind AS financial statements -
+Refer Note 39 to the consolidated Ind AS
+financial statements;
+The consolidated Ind AS financial statements
+disclose the impact of pending litigations
+203
+iii.
+i.
+(h) With respect to the other matters to be included
+in the Auditor's Report in accordance with
+Rule 11 of the Companies (Audit and Auditors)
+Rules, 2014, as amended, in our opinion and to
+the best of our information and according to
+the explanations given to us and based on the
+consideration of the report of the other auditors
+on separate financial statements as also the
+other financial information of the subsidiaries,
+associates and joint venture, as noted in the
+'Other matter' paragraph:
+(g) The provisions of section 197 read with Schedule
+V of the Act are not applicable to the Holding
+Company and its subsidiaries incorporated in
+India for the year ended March 31, 2022;
+With respect to the adequacy of the internal
+financial controls with reference to consolidated
+Ind AS financial statements of the Holding
+Company and its subsidiary companies,
+incorporated in India, and the operating
+effectiveness of such controls, refer to our
+separate Report in "Annexure 2" to this report;
+(f)
+(e) On the basis of written representations received
+from the directors of the Holding Company
+as on March 31, 2022 taken on record by the
+Board of Directors of the Holding Company and
+the reports of the statutory auditors who are
+appointed under Section 139 of the Act, of its
+subsidiary companies none of the directors of
+the Group's companies, incorporated in India,
+is disqualified as on March 31, 2022 from being
+appointed as a director in terms of Section 164 (2)
+of the Act;
+(d) In our opinion, the aforesaid consolidated Ind AS
+financial statements comply with the Accounting
+Standards specified under Section 133 of the
+Act, read with Companies (Indian Accounting
+Standards) Rules, 2015, as amended;
+ii.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+204
+b)
+Statutory Reports
+Corporate Overview
+Membership Number: 105754
+UDIN: 22105754AJVROF1289
+Place of Signature: Mumbai
+Date: May 30, 2022
+Partner
+per Paul Alvares
+ICAI Firm Registration Number: 324982E/E300003
+Chartered Accountants
+For SR BC & CO LLP
+As stated in note 45 to the consolidated
+Ind AS financial statements, the respective
+Board of Directors of the Holding Company,
+its subsidiaries, associates and joint venture
+companies, incorporated in India have
+proposed final dividend for the year which
+is subject to the approval of the members of
+the respective companies at the respective
+ensuing Annual General Meeting. The
+amount of dividend declared is in accordance
+with section 123 of the Act to the extent it
+applies to declaration of dividend.
+The interim dividend declared and paid
+during the year by the Holding Company,
+its subsidiaries, associates and joint venture
+companies incorporated in India and until the
+date of the respective audit reports of such
+Holding Company, subsidiaries, associates
+and joint venture is in accordance with
+section 123 of the Act.
+The final dividend paid by the Holding
+Company, its subsidiaries, associates and
+joint venture companies incorporated in
+India during the year in respect of the
+same declared for the previous year is in
+accordance with section 123 of the Act to
+the extent it applies to payment of dividend.
+by the auditors of the subsidiaries,
+associates and joint venture which are
+companies incorporated in India whose
+financial statements have been audited
+under the Act, nothing has come to our
+or other auditor's notice that has caused
+us or the other auditors to believe that
+the representations under sub-clause
+(a) and (b) contain any material
+mis-statement.
+v)
+Based on the audit procedures that
+have been considered reasonable
+and appropriate in the circumstances
+performed by us and those performed
+The respective managements of the
+Holding Company and its subsidiaries,
+associates and joint venture which
+are companies incorporated in India
+whose financial statements have been
+audited under the Act have represented
+to us and the other auditors of such
+subsidiaries, associates and joint
+venture respectively that, to the best of
+its knowledge and belief, no funds have
+been received by the respective Holding
+Company or any of such subsidiaries,
+associates and joint venture from any
+person(s) or entity(ies), including foreign
+entities ("Funding Parties"), with the
+understanding, whether recorded in
+writing or otherwise, that the Holding
+Company or any of such subsidiaries,
+associates and joint venture shall,
+whether, directly or indirectly, lend
+or invest in other persons or entities
+identified in any manner whatsoever
+by or on behalf of the Funding Party
+("Ultimate Beneficiaries") or provide any
+guarantee, security or the like on behalf
+of the Ultimate Beneficiaries; and
+venture respectively that, to the best of
+its knowledge and belief, no funds have
+been advanced or loaned or invested
+(either from borrowed funds or share
+premium or any other sources or kind
+of funds) by the Holding Company or
+any of such subsidiaries, associates
+and joint venture to or in any other
+person(s) or entity(ies), including
+foreign entities ("Intermediaries"), with
+the understanding, whether recorded
+in writing or otherwise, that the
+Intermediary shall, whether, directly
+or indirectly lend or invest in other
+persons or entities identified in any
+manner whatsoever by or on behalf of
+the respective Holding Company or
+any of such subsidiaries, associates and
+joint venture ("Ultimate Beneficiaries")
+or provide any guarantee, security
+or the like on behalf of the
+Ultimate Beneficiaries;
+c)
+and Consolidated Statement of Changes in
+Equity dealt with by this Report are in agreement
+with the books of account maintained for the
+purpose of preparation of the consolidated Ind AS
+financial statements;
+application of appropriate accounting policies; making
+judgments and estimates that are reasonable and prudent;
+and the design, implementation and maintenance of
+adequate internal financial controls, that were operating
+effectively for ensuring the accuracy and completeness
+of the accounting records, relevant to the preparation
+and presentation of the consolidated Ind AS financial
+statements that give a true and fair view and are free from
+material misstatement, whether due to fraud or error,
+which have been used for the purpose of preparation
+of the consolidated Ind AS financial statements by the
+Directors of the Holding Company, as aforesaid.
+including the Statement of Other Comprehensive
+Income, the Consolidated Cash Flow Statement
+The Consolidated Balance Sheet, the
+OTHER MATTER
+From the matters communicated with those charged with
+governance, we determine those matters that were of
+most significance in the audit of the consolidated Ind AS
+financial statements for the financial year ended March
+31, 2022 and are therefore the key audit matters. We
+describe these matters in our auditor's report unless law or
+regulation precludes public disclosure about the matter or
+when, in extremely rare circumstances, we determine that a
+matter should not be communicated in our report because
+the adverse consequences of doing so would reasonably
+be expected to outweigh the public interest benefits of
+such communication.
+We also provide those charged with governance with a
+statement that we have complied with relevant ethical
+requirements regarding independence, and to communicate
+with them all relationships and other matters that may
+reasonably be thought to bear on our independence, and
+where applicable, related safeguards.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+201
+Scaling up Specialty. Leading with Care.
+We communicate with those charged with governance of
+the Holding Company and such other entities included
+in the consolidated Ind AS financial statements of which
+we are the independent auditors regarding, among
+other matters, the planned scope and timing of the audit
+and significant audit findings, including any significant
+deficiencies in internal control that we identify during
+our audit.
+a.
+• Obtain sufficient appropriate audit evidence regarding
+the financial information of the entities or business
+activities within the Group and its associates and joint
+venture of which we are the independent auditors
+and whose financial information we have audited, to
+express an opinion on the consolidated Ind AS financial
+statements. We are responsible for the direction,
+supervision and performance of the audit of the
+financial statements of such entities included in the
+consolidated Ind AS financial statements of which we
+are the independent auditors. For the other entities
+included in the consolidated Ind AS financial statements,
+which have been audited by other auditors, such other
+auditors remain responsible for the direction, supervision
+and performance of the audits carried out by them. We
+remain solely responsible for our audit opinion.
+• Evaluate the appropriateness of accounting policies used
+and the reasonableness of accounting estimates and
+related disclosures made by management.
+• Obtain an understanding of internal control relevant to
+the audit in order to design audit procedures that are
+appropriate in the circumstances. Under section 143(3)
+(i) of the Act, we are also responsible for expressing our
+opinion on whether the Holding Company has adequate
+internal financial controls with reference to financial
+statements in place and the operating effectiveness of
+such controls.
+• Identify and assess the risks of material misstatement
+of the consolidated Ind AS financial statements,
+whether due to fraud or error, design and perform audit
+procedures responsive to those risks, and obtain audit
+evidence that is sufficient and appropriate to provide a
+basis for our opinion. The risk of not detecting a material
+misstatement resulting from fraud is higher than for
+one resulting from error, as fraud may involve collusion,
+forgery, intentional omissions, misrepresentations, or
+the override of internal control.
+As part of an audit in accordance with SAs, we exercise
+professional judgment and maintain professional
+skepticism throughout the audit. We also:
+Our objectives are to obtain reasonable assurance about
+whether the consolidated Ind AS financial statements as
+a whole are free from material misstatement, whether
+due to fraud or error, and to issue an auditor's report that
+includes our opinion. Reasonable assurance is a high level
+of assurance, but is not a guarantee that an audit conducted
+in accordance with SAs will always detect a material
+misstatement when it exists. Misstatements can arise from
+fraud or error and are considered material if, individually
+or in the aggregate, they could reasonably be expected
+to influence the economic decisions of users taken on the
+basis of these consolidated Ind AS financial statements.
+AUDITOR'S RESPONSIBILITIES FOR THE AUDIT
+OF THE CONSOLIDATED IND AS FINANCIAL
+STATEMENTS
+Those respective Board of Directors of the companies
+included in the Group and of its associates and joint venture
+are also responsible for overseeing the financial reporting
+process of the Group and of its associates and joint venture.
+• Conclude on the appropriateness of management's use
+of the going concern basis of accounting and, based
+on the audit evidence obtained, whether a material
+uncertainty exists related to events or conditions that
+may cast significant doubt on the ability of the Group
+and its associates and joint venture to continue as a
+going concern. If we conclude that a material uncertainty
+exists, we are required to draw attention in our auditor's
+report to the related disclosures in the consolidated
+Ind AS financial statements or, if such disclosures are
+inadequate, to modify our opinion. Our conclusions
+are based on the audit evidence obtained up to the
+date of our auditor's report. However, future events or
+conditions may cause the Group and its associates and
+joint venture to cease to continue as a going concern.
+• Evaluate the overall presentation, structure and
+content of the consolidated Ind AS financial statements,
+including the disclosures, and whether the consolidated
+Ind AS financial statements represent the underlying
+transactions and events in a manner that achieves
+fair presentation.
+Consolidated Statement of Profit and Loss
+We did not audit the financial statements and other
+financial information, in respect of 25 subsidiaries,
+whose Ind AS financial statements, without giving
+effect to elimination of intra-group transactions,
+include total assets of 5,01,178.9 Million as at March
+31, 2022, total revenues of 1,39,267.0 Million and net
+cash outflows of 21,248.9 Million for the year ended
+on that date. These Ind AS financial statement and
+other financial information have been audited by other
+auditors, whose financial statements, other financial
+information and auditor's reports have been furnished
+to us by management. Our opinion on the consolidated
+Ind AS financial statements, in so far as it relates to the
+amounts and disclosures included in respect of these
+subsidiaries and our report in terms of sub-sections (3)
+of Section 143 of the Act, in so far as it relates to the
+aforesaid subsidiaries, is based solely on the reports of
+such other auditors.
+b.
+(c)
+required by law relating to preparation of the
+aforesaid consolidation of the financial statements
+have been kept so far as it appears from our
+examination of those books and reports of the
+other auditors;
+(b) In our opinion, proper books of account as
+(a) We/the other auditors whose report we have
+relied upon have sought and obtained all the
+information and explanations which to the best
+of our knowledge and belief were necessary
+for the purposes of our audit of the aforesaid
+consolidated Ind AS financial statements;
+As required by Section 143(3) of the Act, based on our
+audit and on the consideration of report of the other
+auditors on separate financial statements and the other
+financial information of subsidiaries, associates and
+joint venture, as noted in the 'other matter' paragraph
+we report, to the extent applicable, that:
+As required by the Companies (Auditor's Report)
+Order, 2020 ("the Order”), issued by the Central
+Government of India in terms of sub-section (11) of
+section 143 of the Act, based on our audit and on
+the consideration of report of the other auditors on
+separate financial statements and the other financial
+information of the subsidiary companies, incorporated
+in India, as noted in the 'Other Matter' paragraph we
+give in the "Annexure 1" a statement on the matters
+specified in paragraph 3(xxi) of the Order.
+2.
+Certain of these subsidiaries are located outside
+India whose financial statements and other financial
+information have been prepared in accordance with
+accounting principles generally accepted in their
+respective countries and which have been audited
+by other auditors under generally accepted auditing
+standards applicable in their respective countries.
+The Holding Company's management has converted
+the financial statements of such subsidiaries located
+outside India from accounting principles generally
+accepted in their respective countries to accounting
+principles generally accepted in India. We have audited
+these conversion adjustments made by the Holding
+Company's management. Our opinion in so far as it
+relates to the balances and affairs of such subsidiaries
+located outside India is based on the report of other
+auditors and the conversion adjustments prepared by
+management of the Holding Company and audited
+by us.
+1.
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+202
+Our opinion above on the consolidated Ind AS
+financial statements, and our report on Other Legal
+and Regulatory Requirements below, is not modified
+in respect of the above matters with respect to our
+reliance on the work done and the reports of the
+other auditors and the financial statements and other
+financial information certified by management.
+The consolidated Ind AS financial statements also
+include the Group's share of net loss of 165.4 Million
+for the year ended March 31, 2022, as considered
+in the consolidated Ind AS financial statements, in
+respect of 5 associates and a joint venture, whose
+financial statements, other financial information have
+not been audited and whose unaudited financial
+statements, other unaudited financial information have
+been furnished to us by management. Our opinion, in
+so far as it relates amounts and disclosures included
+in respect of these subsidiaries, joint venture and
+associates, and our report in terms of sub-sections
+(3) of Section 143 of the Act in so far as it relates
+to the aforesaid subsidiaries, joint venture and
+associates, is based solely on such unaudited financial
+statements and other unaudited financial information.
+In our opinion and according to the information
+and explanations given to us by management, these
+financial statements and other financial information
+are not material to the Group.
+The accompanying consolidated Ind AS financial
+statements include unaudited financial statements
+and other unaudited financial information in respect
+of 21 subsidiaries, whose financial statements and
+other financial information, without giving effect
+to elimination of intra-group transactions, reflect
+total assets of 11,040.8 Million as at March 31,
+2022, and total revenues of 7,034.5 Million and net
+cash inflows of 460.5 Million for the year ended
+on that date. These financial have been prepared
+in accordance with accounting principles generally
+accepted in their respective countries for statutory
+purposes and have been audited by other auditors.
+The Holding Company's management has converted
+the financial statements of such subsidiaries located
+outside India from accounting principles generally
+accepted in their respective countries to accounting
+principles generally accepted in India. In the opinion of
+the management these are not material to the group.
+We have not audited these conversion adjustments
+made by the Holding Company's management. Our
+opinion in so far as it relates to the balances and affairs
+of such subsidiaries located outside India is based
+on the report of other auditors and the conversion
+adjustments prepared by management of the
+Holding Company.
+C.
+REPORT ON OTHER LEGAL AND REGULATORY
+REQUIREMENTS
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+510,661.1
+Total equity
+Exchange difference arising on translation of
+foreign operations/ net investment in foreign
+3,619.5
+(2,197.6)
+(486.1)
+(138.2)
+(7.7)
+(260.0)
+175.7
+43.1
+(59.8)
+(122.8)
+(172.0)
+3,215.2
+64,562.7
+46,092.2
+3,069.5
+(13,422.6)
+(10,802.9)
+141.1
+937.3
+1,166.2
+3,699.2
+Cash generated from operations
+3,814.6
+Increase (Decrease) in provisions
+Increase (Decrease) in trade payables
+16.7
+Finance costs
+1,273.5
+1,414.3
+Interest income
+(5,533.7)
+(2,111.3)
+Dividend income on investments
+(2,153.3)
+(2,560.4)
+Net (gain) / loss arising on financial assets measured at fair value through profit or loss
+Net gain on sale of financial assets measured at fair value through profit or loss
+Net (gain) / loss on sale of financial assets measured at fair value through other
+comprehensive income
+Provision / write off/(reversal) for doubtful trade receivables / advances
+Sundry balances written back, net
+Effect of exchange rate changes
+Operating profit before working capital changes
+Movements in working capital:
+(Increase) / Decrease in inventories
+(Increase) Decrease in trade receivables
+(Increase) Decrease in other assets
+Increase (Decrease) in other liabilities
+1,656.0
+(23,333.5)
+45,436.8
+882.2
+(185,417.4)
+Proceeds from sale of investments
+207,020.8
+197,088.0
+Bank balances not considered as cash and cash equivalents
+Fixed deposits / margin money placed
+Fixed deposits / margin money matured
+(5,117.9)
+1,692.6
+(2,818.7)
+4,880.8
+Acquisition of subsidiary
+(7,395.7)
+(616.0)
+Disposal of subsidiary
+Interest received
+238.4
+763.0
+717.7
+Dividend received
+(241,506.2)
+24,983.5
+Purchase of investments (includes investment in subsidiaries and associates)
+Loans/inter corporate deposits received back / matured
+5,542.2
+80,153.2
+71,733.1
+9,692.2
+(10,029.4)
+89,845.4
+61,703.7
+Net Income tax (paid) / refund received (including interest on refunds)
+Net cash generated from operating activities (A)
+B.
+Cash flow from investing activities
+Payments for purchase of property, plant and equipment (including capital work-in-progress,
+other intangible assets and intangible assets under development)
+(14,950.4)
+(11,701.3)
+Proceeds from disposal of property, plant and equipment and other intangible assets
+606.1
+971.0
+Loans / inter corporate deposits given / placed
+(76.8)
+140.4
+1,338.3
+Net (gain) / loss on sale / write off / impairment of property, plant and equipment, other
+intangible assets and intangible assets under development
+21,437.4
+20
+477,712.9
+462,228.5
+Equity attributable to the equity shareholders of the Company
+480,112.2
+464,627.8
+Non-controlling interests
+71
+30,548.9
+30,170.5
+(1,164.6) (1,497.2)
+(3,216.1)
+(276.1)
+(3,492.2)
+Total comprehensive income for the year
+Payment of dividend
+Buy-back/purchase of equity shares
+Transfer on of sale of equity instrument
+32,511.7
+(21,589.1)
+(448.3)
+1.3
+(b) Other equity
+(1,164.6) (1,497.2) 8,010.6
+2,399.3
+19
+33,892.8
+9,064.3
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Other comprehensive income for the year,
+net of tax
+* (215.6)
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+_CONSOLIDATED BALANCE SHEET
+AS AT MARCH 31, 2022
+Particulars
+EQUITY AND LIABILITIES
+* in Million
+Notes
+As at
+March 31, 2022
+As at
+March 31, 2021
+Equity
+(a) Equity share capital
+2,399.3
+20,799.5
+(338.7)
+(1.3)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 30, 2022
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+CONSOLIDATED CASH FLOW STATEMENT
+FOR THE YEAR ENDED MARCH 31, 2022
+Particulars
+A.
+Cash flow from operating activities
+Profit/ (Loss) before tax
+* in Million
+Year ended
+March 31, 2022
+Year ended
+March 31, 2021
+44,813.2
+27,993.7
+Adjustments for:
+Depreciation and amortisation expense
+ANOOP DESHPANDE
+Company Secretary
+37,521.8 1,943.1 39,464.9
+(21,589.1) (102.7) (21,691.8)
+(448.3) (1,462.0) (1,910.3)
+(DIN: 00005588)
+DILIP S. SHANGHVI
+Balance as at March 31, 2022
+2,399.3 3,681.7 11,874.1
+43.8
+7.5
+285.5 35,621.0 376,456.5
+(769.6) 2,392.6 47,935.1
+184.7
+480,112.2 30,548.9 510,661.1
+Represents re-measurement of the defined benefit plans.
+The accompanying notes are an integral part of the consolidated financial statements
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+ICAI Firm Registration No.: 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Mumbai, May 30, 2022
+Managing Director
+494,798.3
+1,375.9
+(57,247.4)
+Year ended March 31,2021
+Borrowings
+79,708.5
+Derivatives, net
+[(liabilities) /asset]
+(355.0)
+(43,718.5)
+120.6
+(585.5)
+41.1
+(169.6)
+(106.2)
+35,234.9
+(299.5)
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 30, 2022
+* in Million
+215
+(302.7)
+302.3
+As per our report of even date
+For S R BC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Mumbai, May 30, 2022
+Scaling up Specialty. Leading with Care.
+ANOOP DESHPANDE
+Company Secretary
+* in Million
+Year ended
+March 31, 2022
+Borrowings
+Derivatives, net
+[(liabilities) /asset]
+35,234.9
+(26,367.1)
+(299.5)
+133.8
+136.8
+(137.0)
+9,306.9
+The accompanying notes are an integral part of the consolidated financial statements
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+FOR THE YEAR ENDED MARCH 31, 2022
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Profit or loss and each component of other
+comprehensive income are attributed to the
+owners of the Company and to the non-
+controlling interests. Total comprehensive income
+of subsidiaries is attributed to the owners of the
+Company and to the non-controlling interests
+even if this results in the non-controlling interests
+having a deficit balance.
+The financial statements of the Group companies
+are consolidated on a line-by-line basis and intra-
+Group balances, transactions including unrealised
+gain / loss from such transactions and cash flows
+relating to transactions between members of the
+Group are eliminated upon consolidation. These
+financial statements are prepared by applying
+uniform accounting policies in use at the Group.
+Changes in the Group's ownership interests in
+existing subsidiaries
+Changes in the Group's ownership interests in
+subsidiaries that do not result in the Group losing
+control over the subsidiaries are accounted for
+as equity transactions. The carrying amounts of
+the Group's interests and the non-controlling
+interests are adjusted to reflect the changes in
+their relative interests in the subsidiaries. Any
+difference between the amount by which the
+non-controlling interests are adjusted and the
+fair value of the consideration paid or received
+is recognised directly in equity and attributed to
+owners of the Company.
+When the Group loses control of a subsidiary,
+a gain or loss is recognised in profit or loss and
+is calculated as the difference between (i) the
+aggregate of the fair value of the consideration
+received and the fair value of any retained
+interest and (ii) the previous carrying amount
+of the assets (including goodwill) and liabilities
+of the subsidiary and any non-controlling
+interests. All amounts previously recognised in
+other comprehensive income in relation to that
+subsidiary are accounted for as if the Group
+had directly disposed off the related assets or
+liabilities of the subsidiary (i.e. reclassified to
+profit or loss or transferred to another category
+of equity as specified/ permitted by applicable
+Ind AS). The fair value of any investment retained
+in the former subsidiary at the date when control
+is lost is regarded as the fair value on initial
+recognition for subsequent accounting under Ind
+AS 109, or, when applicable, the cost on initial
+recognition of an investment in an associate or a
+joint venture.
+Investment in Associates and Joint Ventures
+Associates are those entities over which the
+Group has significant influence. Significant
+influence is the power to participate in the
+financial and operating policy decisions of the
+entities but is not control or joint control of
+those policies.
+A joint venture is a joint arrangement whereby the
+parties that have joint control of the arrangement
+have rights to the net assets of the joint
+arrangement. Joint control is the contractually
+agreed sharing of control of an arrangement,
+which exists only when decisions about the
+relevant activities require unanimous consent of
+the parties sharing control.
+The results and assets and liabilities of associates
+or joint ventures are incorporated in these
+consolidated financial statements using the
+equity method of accounting, except when the
+investment, or a portion thereof, is classified
+as held for sale, in which case it is accounted
+for in accordance with Ind AS 105. Under the
+equity method, an investment in an associate
+or a joint venture is initially recognised in the
+consolidated balance sheet at cost and adjusted
+thereafter to recognise the Group's share of the
+profit or loss and other comprehensive income
+of the associate or joint venture. Distributions
+received from an associate or a joint venture
+reduce the carrying amount of the investment.
+The carrying value of the Group's investment
+includes goodwill identified on acquisition, net of
+any accumulated impairment losses. When the
+Group's share of losses of an associate or a joint
+venture exceeds its interest in that associate or
+joint venture, the carrying amount of that interest
+(including any long-term investments) is reduced
+to zero and the recognition of further losses is
+discontinued except to the extent that the Group
+has obligations or has made payments on behalf
+of the associate or joint venture.
+An investment in an associate or a joint venture is
+accounted for using the equity method from the
+date on which the investee becomes an associate
+or a joint venture and discontinues from the date
+when the investment ceases to be an associate
+or a joint venture, or when the investment is
+classified as held for sale.
+The difference between the carrying amount
+of the associate or joint venture at the date the
+equity method was discontinued, and the fair
+Scaling up Specialty. Leading with Care.
+217
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+216
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+The consolidated financial statements comprise
+the financial statements of the parent Company
+and its subsidiaries as disclosed in Note 38.
+Control exists when the parent has power over
+the entity, is exposed, or has rights, to variable
+returns from its involvement with the entity and
+has the ability to affect those returns by using its
+power over the entity. Power is demonstrated
+through existing rights that give the ability to
+direct relevant activities, those which significantly
+affect the entity's returns. Subsidiaries are
+consolidated from the date control commences
+until the date control ceases.
+a.
+1.
+2.
+GENERAL INFORMATION
+Sun Pharmaceutical Industries Limited (SPIL or
+the "parent company"), is a public limited company
+incorporated and domiciled in India, having its
+registered office at Vadodara, Gujarat, India. SPIL
+is listed on the BSE Limited and National Stock
+Exchange of India Limited. The parent company and its
+subsidiaries (hereinafter referred to as the "Company
+or the "Group") are engaged in the business of
+manufacturing, developing and marketing a wide
+range of branded and generic formulation and Active
+Pharmaceutical ingredients (APIs). The Group has
+various manufacturing locations spread across the
+world with trading and other incidental and related
+activities extending to the global market.
+"
+The consolidated financial statements were authorised
+for issue in accordance with a resolution of the
+directors on May 30, 2022.
+SIGNIFICANT ACCOUNTING POLICIES
+2.1 Statement of compliance
+The Group has prepared its consolidated financial
+statements for the year ended March 31, 2022 in
+accordance with Indian Accounting Standards (Ind
+AS) notified under the Companies (Indian Accounting
+Standards) Rules, 2015 (as amended) together with the
+comparative period data as at and for the year ended
+March 31, 2021.
+2.2 Basis of preparation and presentation
+The consolidated financial statements have been
+prepared on the historical cost convention and
+on an accrual basis, except for: (i) certain financial
+instruments that are measured at fair values at the
+end of each reporting period; (ii) Non-current assets
+classified as held for sale which are measured at the
+lower of their carrying amount and fair value less costs
+to sell; (iii) investment in joint ventures and associates
+are accounted for using the equity method (iv)
+derivative financial instruments and (v) defined benefit
+plans plan assets that are measured at fair values at
+the end of each reporting period, as explained in the
+accounting policies below:
+Historical cost is generally based on the fair value
+of the consideration given in exchange for goods
+and services.
+The consolidated financial statements are presented
+in Indian Rupees (*) and all values are rounded to the
+nearest Million (*000,000) upto one decimal, except
+when otherwise indicated.
+Fair value is the price that would be received to sell
+an asset or paid to transfer a liability in an orderly
+transaction between market participants at the
+measurement date, regardless of whether that price
+is directly observable or estimated using another
+valuation technique. In estimating the fair value of
+an asset or a liability, the Group takes into account
+the characteristics of the asset or liability if market
+participants would take those characteristics into
+account when pricing the asset or liability at the
+measurement date. Fair value for measurement and/
+or disclosure purposes in these consolidated financial
+statements is determined on such a basis, except for
+share-based payment transactions that are within
+the scope of Ind AS 102, leasing transactions that are
+within the scope of Ind AS 116, and measurements
+that have some similarities to fair value but are not fair
+value, such as net realisable value in Ind AS 2 or value
+in use in Ind AS 36.
+In addition, for financial reporting purposes, fair
+value measurements are categorised into Level 1,
+2, or 3 based on the degree to which the inputs
+to the fair value measurements are observable
+and the significance of the inputs to the fair value
+measurement in its entirety, which are described
+as follows:
+• Level 1 inputs are quoted prices (unadjusted) in
+active markets for identical assets or liabilities that
+the entity can access at the measurement date;
+• Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the
+asset or liability, either directly or indirectly; and
+• Level 3 inputs are unobservable inputs for the asset
+or liability.
+The Group has consistently applied the following
+accounting policies to all periods presented in these
+consolidated financial statements.
+Basis of consolidation
+Net cash from (used in) investing activities (B)
+For movement of lease liabilities, Refer Note 54.
+Changes in fair value
+(1,854.2)
+Net increase / (decrease) in working capital demand loans
+1,064.2
+(1,726.4)
+Refund from escrow account for buy-back
+4,250.0
+Dividend paid
+Finance costs
+Dividend payment to non-controlling interests
+Net cash used in financing activities (C)
+(732.1)
+(1,442.5)
+(102.7)
+(267.0)
+(21,589.2)
+(15,594.7)
+(51,934.6)
+(59,804.8)
+Net (decrease) / increase in cash and cash equivalents (A+B+C)
+(1,857.0)
+Cash and cash equivalents at the beginning of the year
+Payment for buy-back of equity shares held by non-controlling interests of subsidiaries
+(1,286.5)
+5,362.2
+Scaling up Specialty. Leading with Care.
+213
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+CONSOLIDATED CASH FLOW STATEMENT
+FOR THE YEAR ENDED MARCH 31, 2022
+Particulars
+Year ended
+March 31, 2022
+* in Million
+Year ended
+March 31, 2021
+C.
+Cash flow from financing activities
+Proceeds from borrowings
+16,567.7
+66,028.7
+Repayment of borrowings
+(43,999.0)
+(108,020.8)
+Repayment towards lease liabilities
+(1,177.9)
+Closing balance
+(19,336.6)
+62,730.3
+62,730.3
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+_CONSOLIDATED CASH FLOW STATEMENT
+FOR THE YEAR ENDED MARCH 31, 2022
+Change in financial liability/ asset arising from financing activities
+Particulars
+Opening balance
+Changes from financing cash flows
+The effect of changes in foreign exchange rates
+Other changes
+Closing balance
+Particulars
+Opening balance
+Changes from financing cash flows
+The effect of changes in foreign exchange rates
+Other changes
+14.1
+7,261.1
+290.8
+21,487.4
+23,439.1
+140.8
+15.2
+45,082.5
+56,766.1
+Cash and cash equivalents transferred on sale of subsidiary / taken over on acquisition of
+subsidiary
+Effect of exchange differences on restatement of foreign currency cash and cash equivalents
+Cash and cash equivalents at the end of the year
+Notes:
+414.5
+1,274.3
+45,082.5
+(1,296.9)
+62,730.3
+Particulars
+Cash and cash equivalents comprises of
+Balances with banks
+In current accounts
+In deposit accounts with original maturity less than 3 months
+Cheques, drafts on hand
+Cash on hand
+Cash and cash equivalents (Refer note 14)
+214
+* in Million
+As at
+March 31, 2022
+As at
+March 31, 2021
+28,097.7
+34,327.7
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+30,170.5
+8,010.6
+Employee benefits expense
+34
+73,008.3
+68,622.3
+Finance costs
+35
+1,273.5
+1,414.3
+Depreciation and amortisation expense
+3 (A & B)
+21,437.4
+20,799.5
+Other expenses
+36
+107,583.6
+94,781.1
+Net (gain) loss on foreign currency transactions
+(1,539.6)
+(236.5)
+(6,382.2)
+Total expenses (IV)
+(1,076.1)
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+(IV) EXPENSES
+Notes
+30
+Year ended
+March 31, 2022
+386,544.9
+31
+9,215.1
+395,760.0
+* in Million
+Year ended
+March 31, 2021
+334,981.4
+8,355.2
+343,336.6
+Cost of materials consumed
+32
+32
+70,491.2
+61,531.3
+Purchases of stock-in-trade
+34,100.3
+31,751.7
+33
+(III) Total income (I+II)
+305,278.6
+(V) PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (III-IV)
+49
+10,755.0
+5,146.9
+(IX) PROFIT FOR THE YEAR BEFORE SHARE OF PROFIT/(LOSS) OF
+34,058.2
+22,846.8
+ASSOCIATES AND JOINT VENTURE (VII-VIII)
+(X) Share of profit/(loss) of associates (net of tax)
+(217.3)
+(135.5)
+(XI) Share of profit/(loss) of joint venture (net of tax)
+(XII) PROFIT FOR THE YEAR BEFORE NON-CONTROLLING INTERESTS
+(IX+X+XI)
+51.9
+33,892.8
+12.2
+22,723.5
+(XIII) Non-controlling interests
+71
+1,165.5
+32,727.3
+(6,314.7)
+Total tax expense (VIII)
+272,281.5
+(4,095.1)
+61
+90,481.4
+71,055.1
+(VI) Exceptional items
+61
+45,668.2
+43,061.4
+(VII)
+PROFIT BEFORE TAX (V-VI)
+44,813.2
+27,993.7
+(VIII)
+TAX EXPENSE/(CREDIT)
+Current tax
+3,543.9
+9,573.0
+Deferred tax
+7,975.3
+(331.0)
+Deferred tax-exceptional
+(764.2)
+29,038.2
+(II) Other income
+Particulars
+6,344.5
+7,519.3
+Total non-current liabilities
+15,332.1
+20,412.7
+(2) Current liabilities
+(a) Financial liabilities
+(i)
+Borrowings
+(ii) Lease Liabilities
+(iii) Trade payables
+(iv) Other financial liabilities
+(b) Other current liabilities
+(c) Provisions
+(d) Current tax liabilities (Net)
+Total current liabilities
+Total liabilities
+TOTAL EQUITY AND LIABILITIES
+The accompanying notes are an integral part of the consolidated financial statements
+As per our report of even date
+24
+For S RBC & CO LLP
+445.1
+50
+494,798.3
+Liabilities
+(1) Non-current liabilities
+(a) Financial liabilities
+(i)
+Borrowings
+(ii) Lease Liabilities
+(iii) Other financial liabilities
+(b) Provisions
+(c) Deferred tax liabilities (Net)
+(d) Other non-current liabilities
+222222
+21
+54
+23
+2,299.2
+2,517.9
+161.2
+3,690.7
+6,547.1
+2,434.2
+195.8
+3,271.2
+318.6
+(I) Revenue from operations
+Chartered Accountants
+per PAUL ALVARES
+29
+1,781.4
+1,790.8
+172,005.5
+161,456.3
+187,337.6
+181,869.0
+697,998.7
+676,667.3
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+(DIN : 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 30, 2022
+209
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+CONSOLIDATED STATEMENT OF PROFIT AND LOSS
+FOR THE YEAR ENDED MARCH 31, 2022
+45,826.5
+ICAI Firm Registration No. : 324982E/E300003
+91,478.2
+7,279.9
+Partner
+Membership No.: 105754
+Mumbai, May 30, 2022
+Scaling up Specialty. Leading with Care.
+ANOOP DESHPANDE
+Company Secretary
+25
+7,007.7
+28,687.8
+54
+1,078.2
+1,016.7
+44,793.4
+39,736.6
+2222
+26
+18,832.7
+37,118.0
+27
+7,033.9
+28
+464,627.8
+32,727.3 1,165.5
+8,010.6 1,053.7
+(XIV) PROFIT FOR THE YEAR ATTRIBUTABLE TO OWNERS OF THE COMPANY
+(XII-XIII)
+(A) Items that will not be reclassified to profit or loss
+Other comprehensive income for the year,
+net of tax
+Total comprehensive income for the year
+Payment of dividend
+Equity
+share
+capital
+Capital Securities Amalgamation
+reserve premium
+Reserves and surplus
+Capital
+redemption
+Legal
+reserve
+reserve
+General Retained
+reserve earnings
+Debt
+instrument
+through through
+reserve
+OCI
+OCI
+Other comprehensive income (OCI)
+Equity Foreign
+instrument currency
+translation
+reserve
+Attributable
+Effective
+portion of
+cash flow
+to owners
+of parent
+company
+operations, net of tax
+Non-
+controlling
+interests
+Profit for the year
+Particulars
+28,133.4
+(6,870.2)
+54
+51
+13.6
+12.1
+13.6
+12.1
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 30, 2022
+211
+212
+CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+FOR THE YEAR ENDED MARCH 31, 2022
+Other equity
+in Million
+Balance as at March 31, 2020
+37,521.8
+1,943.1
+Total
+2,399.3 3,681.7 11,874.1
+928.6 3,141.2 (5,874.5)
+952.6
+(559.5)
+28,133.4
+(15,590.6)
+(559.5)
+(6,870.2) 21,263.2
+(1,294.7)
+(267.0) (15,857.6)
+(1,854.2)
+(55.0)
+statement of profit and loss as per the local
+law of overseas subsidiaries
+Balance as at March 31, 2021
+Profit for the year
+Exchange difference arising on translation of
+foreign operations/ net investment in foreign
+operations, net of tax
+2,399.3 3,681.7 11,874.1
+43.8
+7.5
+285.5 35,621.0 365,980.9
+32,727.3
+395.0 3,891.1 39,924.5
+523.4
+28,985.5
+(15,590.6)
+hedges
+5,195.1
+4,969.7
+43.8
+7.5
+230.5 35,621.0 353,200.5
+29,038.2
+(533.6)
+749.9 45,799.0
+(429.2)
+452,644.5 38,602.4
+491,246.9
+(5,874.5)
+29,038.2
+(5,874.5)
+(6,314.7) 22,723.5
+(780.9) (6,655.4)
+Buy-back/purchase of equity shares by
+overseas subsidiaries company
+Transfer from surplus in consolidated
+55.0
+* (52.7)
+928.6 3,141.2
+952.6
+225.4
+(XV) OTHER COMPREHENSIVE INCOME
+ANOOP DESHPANDE
+Company Secretary
+Mumbai, May 30, 2022
+Consolidated Accounts
+CONSOLIDATED STATEMENT OF PROFIT AND LOSS
+FOR THE YEAR ENDED MARCH 31, 2022
+Particulars
+(B) Items that may be reclassified to profit or loss
+(a) Gain/(loss) on debt instruments measured at fair value through other
+comprehensive income
+Income tax on above
+Notes
+Year ended
+March 31, 2022
+* in Million
+Year ended
+March 31, 2021
+(1,567.3)
+1,172.5
+131.6
+(80.3)
+(1,435.7)
+1,092.2
+(b) Effective portion of gain/(loss) on designated portion of hedging
+instruments in a cash flow hedge
+(515.3)
+Financial Statements
+1,451.3
+Statutory Reports
+3,088.5
+210
+(a) Gain/(loss) on re-measurement of the defined benefit plans
+Income tax on above
+(b) Gain/(loss) on equity instruments measured at fair value through other
+comprehensive income
+Total (A)
+Income tax on above
+(330.7)
+(81.9)
+115.3
+29.2
+(215.4)
+(52.7)
+(1,542.8)
+3,315.8
+45.6
+(174.6)
+(1,497.2)
+3,141.2
+(1,712.6)
+Corporate Overview
+Scaling up Specialty. Leading with Care.
+Income tax on above
+(436.9)
+4,794.5
+(904.8)
+777.6
+(555.5)
+Non-controlling interests
+Total comprehensive income for the year attributable to:
+Owners of the Company
+Non-controlling interests
+Earnings per equity share (face value per equity share - * 1)
+Basic (in )
+Diluted (in)
+The accompanying notes are an integral part of the consolidated financial statements
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No. : 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Owners of the Company
+171.4
+Other comprehensive income for the year attributable to:
+39,464.9
+(343.9)
+1,014.4
+(c) Exchange differences in translating the financial statements of foreign
+operations
+9,479.1
+(8,013.1)
+Exchange differences on translation of net investment in
+foreign operations
+344.4
+1,357.7
+Income tax on above
+(759.2)
+9,064.3
+(6,655.4)
+Total (B)
+7,284.7
+(4,548.8)
+(XV) TOTAL OTHER COMPREHENSIVE INCOME (A + B)
+5,572.1
+(1,460.3)
+(XVI)TOTAL COMPREHENSIVE INCOME FOR THE YEAR (XII+XV)
+21,263.2
+FOR THE YEAR ENDED MARCH 31, 2022
+(338.7)
+The Group presents assets and liabilities in the
+balance sheet based on current / non-current
+classification. An asset is treated as current when
+218
+b.
+value of any retained interest and any proceeds
+from disposing of a part interest in the associate
+or joint venture is included in the determination
+of the gain or loss on disposal of the associate
+or joint venture. In addition, the Group accounts
+for all amounts previously recognised in other
+comprehensive income in relation to that
+associate or joint venture on the same basis
+as would be required if that associate or joint
+venture had directly disposed off the related
+assets or liabilities.
+When a Group entity transacts with an associate
+or a joint venture of the Group, profits and losses
+resulting from the transactions with the associate
+or joint venture are recognised in the Group's
+consolidated financial statements only to the
+extent of interest in the associate or joint venture
+that are not related to the Group.
+Current vs. Non-current
+it is:
+• Expected to be realised or intended to be sold
+or consumed in normal operating cycle
+• Held primarily for the purpose of trading
+• Cash or cash equivalent unless restricted
+from being exchanged or used to settle a
+liability for at least twelve months after the
+reporting period.
+All other assets are classified as non-current.
+• Expected to be realised within twelve months
+after the reporting period, or
+• It is expected to be settled in normal
+operating cycle
+The Group uses the acquisition method of
+accounting to account for business combinations
+that occurred on or after April 01, 2015. The
+acquisition date is generally the date on which
+control is transferred to the acquirer. Judgment
+is applied in determining the acquisition date
+and determining whether control is transferred
+from one party to another. Control exists when
+the Group is exposed to, or has rights to, variable
+returns from its involvement with the entity and
+has the ability to affect those returns through
+power over the entity. In assessing control,
+potential voting rights are considered only if
+the rights are substantive. The Group measures
+goodwill as of the applicable acquisition date at
+the fair value of the consideration transferred,
+including the recognised amount of any non-
+controlling interest in the acquiree and the fair
+value of the acquirer's previously held equity
+interest in the acquiree (if any), less the net
+recognised amount of the identifiable assets
+acquired and liabilities assumed. When the fair
+value of the net identifiable assets acquired and
+liabilities assumed exceeds the consideration
+transferred, a bargain purchase gain is recognised
+immediately in the OCI and accumulates the same
+in equity as Capital reserve where there exists
+clear evidence of the underlying reasons for
+classifying the business combination as a bargain
+purchase else the gain is directly recognised
+in equity as Capital reserve. Consideration
+transferred includes the fair values of the assets
+transferred, liabilities incurred by the Group to
+the previous owners of the acquiree, and equity
+interests issued by the Group. Consideration
+transferred also includes the fair value of any
+contingent consideration. Changes in the fair
+value of the contingent consideration that
+qualify as measurement period adjustments are
+adjusted retrospectively, with corresponding
+adjustments against goodwill or capital reserve,
+as the case maybe. The subsequent accounting
+for changes in the fair value of the contingent
+consideration that do not qualify as measurement
+Business combinations
+The operating cycle is the time between the
+acquisition of assets for processing and their
+realisation in cash and cash equivalents. The
+Group has identified twelve months as its
+operating cycle.
+A liability is current when:
+C.
+Deferred tax assets and liabilities are classified as
+non-current assets and liabilities.
+The Group classifies all other liabilities as non-
+current.
+• There is no unconditional right to defer the
+settlement of the liability for at least twelve
+months after the reporting period.
+• It is due to be settled within twelve months
+after the reporting period, or
+• It is held primarily for the purpose of trading
+Amortisation is recognised on a straight-line
+basis over the estimated useful lives of intangible
+assets. Intangible assets that are not available for
+use are amortised from the date they are available
+for use.
+FOR THE YEAR ENDED MARCH 31, 2022
+222
+h.
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+The estimated useful lives for Product related
+intangibles and Other intangibles ranges from 3 to
+20 years.
+a)
+De-recognition of intangible assets
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits
+are expected from their use. Gain or loss arising
+on such de-recognition is recognised in profit or
+loss, and are measured as the difference between
+the net disposal proceeds, if any, and the carrying
+amount of respective intangible assets as on the
+date of de-recognition.
+Impairment of non-financial assets other than
+goodwill
+The carrying amounts of the Group's non-financial
+assets are reviewed at each reporting date to
+determine whether there is any indication of
+impairment. If any such indication exists, then the
+asset's recoverable amount is estimated in order
+to determine the extent of the impairment loss,
+if any.
+The recoverable amount of an asset or cash-
+generating unit (as defined below) is the greater
+of its value in use and its fair value less costs
+to sell. In assessing value in use, the estimated
+future cash flows are discounted to their present
+value using a pre-tax discount rate that reflects
+current market assessments of the time value of
+money and the risks specific to the asset or the
+cash-generating unit for which the estimates of
+future cash flows have not been adjusted. For the
+purpose of impairment testing, assets are grouped
+together into the smallest Group of assets that
+generates cash inflows from continuing use
+that are largely independent of the cash inflows
+of other assets or groups of assets (the "cash-
+generating unit").
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+The estimated useful life and amortisation
+method are reviewed at the end of each reporting
+period, with the effect of any changes in estimate
+being accounted for on a prospective basis.
+221
+Other Intangible assets that are acquired by
+the Group and that have finite useful lives are
+measured at cost less accumulated amortisation
+and accumulated impairment losses, if any.
+Subsequent expenditures are capitalised
+only when they increase the future economic
+benefits embodied in the specific asset to which
+they relate.
+Subsequent expenditures are capitalised
+only when they increase the future economic
+benefits embodied in the specific asset to which
+they relate. All other expenditures, including
+expenditures on internally generated goodwill and
+brands, are recognised in the statement of profit
+and loss as incurred.
+The consideration for acquisition of intangible
+asset which is based on reaching specific
+milestone that are dependent on the Group's
+future activity is recognised only when the
+activity requiring the payment is performed.
+Acquired research and development intangible
+assets which are under development, are
+recognised as In-Process Research and
+Development assets ("IPR&D"). IPR&D assets
+are not amortised, but evaluated for potential
+impairment on an annual basis or when there
+are indications that the carrying value may not
+be recoverable. Any impairment charge on such
+IPR&D assets is recognised in profit or loss.
+Intangible assets relating to products under
+development, other intangible assets not available
+for use and intangible assets having indefinite
+useful life are tested for impairment annually, or
+more frequently when there is an indication that
+the assets may be impaired. All other intangible
+assets are tested for impairment when there
+are indications that the carrying value may not
+be recoverable.
+Payments to third parties that generally take the
+form of up-front payments and milestones for
+in-licensed products, compounds and intellectual
+property are capitalised since the probability of
+expected future economic benefits criterion is
+always considered to be satisfied for separately
+acquired intangible assets.
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable
+to preparing the asset for its intended use. Other
+development expenditure is recognised in profit
+or loss as incurred.
+⚫ future economic benefits are probable; and
+⚫ the Group intends to and has sufficient
+resources/ability to complete development and
+to use or sell the asset.
+⚫ the product or process is technically and
+commercially feasible;
+⚫ development costs can be measured reliably;
+Expenditure on research activities undertaken
+with the prospect of gaining new scientific
+or technical knowledge and understanding
+are recognised as an expense when incurred.
+Development activities involve a plan or design
+for the production of new or substantially
+improved products and processes. An internally-
+generated intangible asset arising from
+development is recognised if and only if all of the
+following have been demonstrated:
+Research and development
+An impairment loss is recognised in the profit or
+loss if the estimated recoverable amount of an
+asset or its cash generating unit is lower than its
+Other Intangible assets
+On disposal of a cash-generating unit to which
+goodwill is allocated, the goodwill associated with
+the disposed cash-generating unit is included in
+the carrying amount of the cash-generating unit
+when determining the gain or loss on disposal.
+Scaling up Specialty. Leading with Care.
+i.
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+In respect of assets other than goodwill,
+impairment losses recognised in prior periods
+are assessed at each reporting date for any
+indications that the loss has decreased or no
+longer exists. An impairment loss is reversed
+if there has been a change in the estimates
+used to determine the recoverable amount. An
+impairment loss is reversed only to the extent
+that the asset's carrying amount does not exceed
+the carrying amount that would have been
+determined, net of depreciation or amortisation, if
+no impairment loss had been recognised.
+In calculating the present value of lease
+payments, the Company uses its incremental
+borrowing rate at the lease commencement
+date because the interest rate implicit in the
+lease is not readily determinable. After the
+commencement date, the amount of lease
+liabilities is increased to reflect the accretion
+of interest and reduced for the lease
+payments made. In addition, the carrying
+amount of lease liabilities is remeasured if
+there is a modification, a change in the lease
+term, a change in the lease payments (e.g.,
+changes to future payments resulting from a
+change in an index or rate used to determine
+such lease payments) or a change in the
+assessment of an option to purchase the
+underlying asset.
+A 'debt instrument' is measured at the amortised
+cost if both the following conditions are met:
+Debt instruments at amortised cost
+• Equity instruments measured at fair value
+through other comprehensive income
+(FVTOCI)
+• Debt instruments and equity instruments at
+fair value through profit or loss (FVTPL)
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+• Debt instruments at amortised cost
+For purposes of subsequent measurement,
+financial assets are classified in four categories:
+Subsequent measurement
+All financial assets are recognised initially at
+fair value plus, in the case of financial assets
+not recorded at fair value through profit or loss,
+transaction costs that are attributable to the
+acquisition of the financial asset. Purchases or
+sales of financial assets that require delivery
+of assets within a time frame established by
+regulation or convention in the market place
+(regular way trades) are recognised on the date
+the Group commits to purchase or sell the
+financial assets.
+Initial recognition and measurement
+Financial assets
+A financial instrument is any contract that
+gives rise to a financial asset of one entity
+and a financial liability or equity instrument of
+another entity.
+Financial instruments
+Non-current assets (and disposal groups) classified
+as held for sale are measured at the lower of
+their carrying amount and fair value less costs
+to sell. Non-current assets held for sale are not
+depreciated or amortised.
+After the disposal takes place, the Group accounts
+for any retained interest in the associate or joint
+venture in accordance with Ind AS 109 unless
+the retained interest continues to be an associate
+or a joint venture, in which case the Group uses
+the equity method (see the accounting policy
+regarding investments in associates or joint
+ventures above).
+classified as held for sale continues to be
+accounted for using the equity method. The
+Group discontinues the use of the equity method
+at the time of disposal when the disposal results
+in the Group losing significant influence over the
+associate or joint venture.
+j.
+FOR THE YEAR ENDED MARCH 31, 2022
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-
+controlling interest in the acquiree, over the fair
+value of the Group's share of identifiable net
+assets acquired. Goodwill is measured at cost
+less accumulated impairment losses. A cash-
+generating unit to which goodwill has been
+allocated is tested for impairment annually, or
+more frequently when there is an indication that
+the unit may be impaired. The goodwill acquired
+in a business combination is, for the purpose of
+impairment testing, allocated to cash-generating
+units that are expected to benefit from the
+synergies of the combination. Any impairment
+loss for goodwill is recognised directly in profit or
+loss. An impairment loss recognised for goodwill is
+not reversed in subsequent periods.
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+Any retained portion of an investment in an
+associate or a joint venture that has not been
+When the Group is committed to a sale plan
+involving disposal of an investment, or a portion
+of an investment, in an associate or joint venture,
+the investment or the portion of the investment
+that will be disposed off is classified as held for
+sale when the criteria described above are met,
+and the Group discontinues the use of the equity
+method in relation to the portion that is classified
+as held for sale.
+When the Group is committed to a sale plan
+involving loss of control of a subsidiary, all of
+the assets and liabilities of that subsidiary are
+classified as held for sale when the criteria
+described above are met, regardless of whether
+the Group will retain a non-controlling interest in
+its former subsidiary after the sale.
+Non-current assets and disposal groups are
+classified as held for sale if their carrying amount
+will be recovered principally through a sale
+transaction rather than through continuing use.
+This condition is regarded as met only when the
+asset (or disposal group) is available for immediate
+sale in its present condition subject only to terms
+that are usual and customary for sales of such
+asset (or disposal group) and its sale is highly
+probable. Management must be committed to
+the sale, which should be expected to qualify for
+recognition as a completed sale within one year
+from the date of classification.
+Non-current assets held for sale
+carrying amount. Impairment losses recognised in
+respect of cash-generating units are allocated first
+to reduce the carrying amount of any goodwill
+allocated to the units and then to reduce the
+carrying amount of the other assets in the unit on
+a pro-rata basis.
+Goodwill and Other Intangible assets
+Goodwill
+2-17
+g.
+e.
+220
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+219
+Scaling up Specialty. Leading with Care.
+For the purposes of presenting these consolidated
+financial statements, the assets and liabilities
+of Group's foreign operations, are translated
+to the Indian Rupees at exchange rates at the
+end of each reporting period. The income
+and expenses of such foreign operations are
+translated at the average exchange rates for the
+period. Resulting foreign currency differences
+are recognised in other comprehensive income
+and presented within equity as part of Foreign
+Currency Translation Reserve (and attributed to
+non-controlling interests as appropriate). When
+a foreign operation is disposed off, the relevant
+Foreign operations
+Non-monetary items that are measured in
+terms of historical cost in foreign currency are
+measured using the exchange rates at the date of
+initial transaction.
+• exchange differences relating to the
+translation of the results and the net assets
+of the Company's foreign operations from
+their functional currencies to the Company's
+presentation currency (i.e) are recognised
+directly in the other comprehensive income
+and accumulated in foreign currency
+translation reserve. Exchange difference
+in the foreign currency translation reserve
+are reclassified to statement of profit
+or loss account on the disposal of the
+foreign operation.
+• exchange differences on transactions entered
+into in order to hedge certain foreign currency
+risks (see note 2.2.j below for hedging
+accounting policies).
+• exchange differences on foreign currency
+borrowings relating to assets under
+construction for future productive use, which
+are included in the cost of those assets when
+they are regarded as an adjustment to interest
+costs on those foreign currency borrowings
+(see note 2.2.s).
+currencies at the reporting date are translated
+into the functional currency at the exchange rate
+on that date. Exchange differences arising on the
+settlement of monetary items or on translating
+monetary items at rates different from those at
+which they were translated on initial recognition
+during the period or in previous period are
+recognised in profit or loss in the period in which
+they arise except for:
+In preparing the financial statements of each
+individual Group entity, transactions in currencies
+other than the entity's functional currency
+(foreign currencies) are translated at exchange
+rates on the date of the transactions. Monetary
+assets and liabilities denominated in foreign
+Foreign currency transactions
+Foreign currency
+d.
+If the initial accounting for a business combination
+is incomplete by the end of the reporting period
+in which the combination occurs, the Group
+reports provisional amounts for the items for
+which the accounting is incomplete. Those
+provisional amounts are adjusted during the
+measurement period (see above), or additional
+assets or liabilities are recognised, to reflect
+new information obtained about facts and
+circumstances that existed at the acquisition date
+that, if known, would have affected the amounts
+recognised at that date.
+If the business combination is achieved in stages,
+any previously held equity interest is re-measured
+at its acquisition date fair value and any resulting
+gain or loss is recognised in profit or loss or OCI,
+as appropriate.
+A contingent liability of the acquiree is assumed
+in a business combination only if such a liability
+represents a present obligation and arises from
+a past event and its fair value can be measured
+reliably. On an acquisition-by-acquisition basis,
+the Group recognises any non-controlling interest
+in the acquiree either at fair value or at the non-
+controlling interest's proportionate share of the
+acquiree's identifiable net assets. Transaction
+costs that the Group incurs in connection with a
+business combination, such as finder's fees, legal
+fees, due diligence fees and other professional
+and consulting fees, are expensed as incurred.
+period adjustments depends on how the
+contingent consideration is classified. Contingent
+consideration that is classified as equity is not
+remeasured at subsequent reporting dates and
+its subsequent settlement is accounted for within
+equity. Contingent consideration that is classified
+as an asset or a liability is remeasured at fair
+value at subsequent reporting dates with the
+corresponding gain or loss being recognised in
+profit or loss. Consideration transferred does not
+include amounts related to settlement of pre-
+existing relationships.
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+b)
+f.
+expense as incurred. The capitalised costs are
+amortised over the lower of the estimated useful
+life of the software and the remaining useful life
+of the tangible fixed asset.
+amount in the Foreign Currency Translation
+Reserve is reclassified to profit or loss.
+Goodwill and fair value adjustments to identifiable
+assets acquired and liabilities assumed through
+acquisition of a foreign operation are treated
+as assets and liabilities of the foreign operation
+and translated at the rate of exchange prevailing
+at the end of each reporting period. Exchange
+differences arising are recognised in other
+comprehensive income.
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+Software for internal use, which is primarily
+acquired from third-party vendors and which
+is an integral part of a tangible asset, including
+consultancy charges for implementing the
+software, is capitalised as part of the related
+tangible asset. Subsequent costs associated with
+maintaining such software are recognised as
+* Includes assets given under operating lease.
+3-30
+At the commencement date of the lease,
+the Company recognises lease liabilities
+measured at the present value of lease
+payments to be made over the lease term.
+The lease payments include fixed payments
+(including insubstance fixed payments) less
+any lease incentives receivable, variable
+lease payments that depend on an index
+or a rate, and amounts expected to be paid
+under residual value guarantees. The lease
+payments also include the exercise price of
+a purchase option reasonably certain to be
+exercised by the Company and payments
+of penalties for terminating the lease, if the
+lease term reflects the Company exercising
+the option to terminate.
+2-15
+1-30
+7-125
+No. of years
+Furniture and fixtures
+Office equipment
+Vehicles
+Buildings including factory buildings*
+Plant and equipment
+Asset Category
+The estimated useful lives are as follows:
+Depreciation is recognised on the cost of assets
+(other than freehold land and Capital work-in-
+progress) less their residual values on straight-
+line method over their useful lives. Leasehold
+improvements are depreciated over period of the
+lease agreement or the useful life, whichever is
+shorter. Depreciation methods, useful lives and
+residual values are reviewed at the end of each
+reporting period, with the effect of any changes in
+estimate accounted for on a prospective basis.
+Items of property, plant and equipment acquired
+through exchange of non-monetary assets are
+measured at fair value, unless the exchange
+transaction lacks commercial substance or the fair
+value of either the asset received or asset given
+up is not reliably measurable, in which case the
+acquired asset is measured at the carrying amount
+of the asset given up.
+An item of property, plant and equipment is
+derecognised upon disposal or when no future
+economic benefits are expected to arise from
+the continued use of the asset. Any gain or loss
+arising on the disposal or retirement of an item
+of property, plant and equipment is determined
+as the difference between the sales proceeds
+and the carrying amount of property, plant and
+equipment and is recognised in profit or loss.
+the same basis as other assets, commences when
+the assets are ready for their intended use. When
+parts of an item of property, plant and equipment
+have different useful lives, they are accounted for
+as separate items (major components) of property,
+plant and equipment.
+Assets in the course of construction for
+production, supply or administrative purposes
+are carried at cost, less any recognised
+impairment loss. Cost includes purchase price,
+borrowing costs if capitalisation criteria are met
+and directly attributable cost of bringing the
+asset to its working condition for the intended
+use. Subsequent expenditures are capitalised
+only when they increase the future economic
+benefits embodied in the specific asset to
+which they relate. Such assets are classified to
+the appropriate categories of property, plant
+and equipment when completed and ready for
+intended use. Depreciation of these assets, on
+Items of property, plant and equipment are
+stated in consolidated balance sheet at cost
+less accumulated depreciation and accumulated
+impairment losses, if any. Freehold land is
+not depreciated.
+Property, plant and equipment
+Operating segments are reported in a manner
+consistent with the internal reporting provided
+to the chief operating decision maker. The chief
+operating decision maker of the Company is
+responsible for allocating resources and assessing
+performance of the operating segments.
+Segment reporting
+In addition, in relation to a partial disposal of
+a subsidiary that includes a foreign operation
+that does not result in the Group losing control
+over the subsidiary, the proportionate share
+of accumulated exchange differences are re-
+attributed to non-controlling interests and are not
+recognised in profit or loss. For all other partial
+disposals (i.e. partial disposals of associates or
+joint arrangements that do not result in the Group
+losing significant influence or joint control), the
+proportionate share of the accumulated exchange
+differences is reclassified to profit or loss.
+5
+1-5
+5
+In accordance with Ind AS 109, the Group applies
+expected credit loss (ECL) model for measurement
+and recognition of impairment loss on the trade
+receivables or any contractual right to receive
+cash or another financial asset that result from
+transactions that are within the scope of Ind
+AS 115.
+The Group follows 'simplified approach' for
+recognition of impairment loss allowance on trade
+receivables or any contractual right to receive
+cash or another financial asset. The application
+of simplified approach does not require the
+Group to track changes in credit risk. Rather, it
+recognises impairment loss allowance based on
+lifetime ECLs at each reporting date, right from its
+initial recognition.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+As a practical expedient, the Group uses a
+provision matrix to determine impairment loss
+allowance on portfolio of its trade receivables.
+The provision matrix is based on its historically
+observed default rates over the expected life of
+the trade receivables and is adjusted for forward-
+looking estimates. At every reporting date, the
+historical observed default rates are updated
+and changes in the forward-looking estimates
+are analysed.
+Financial liabilities and equity instruments
+Classification as debt or equity
+Debt and equity instruments issued by a Group
+entity are classified as either financial liabilities or
+as equity in accordance with the substance of the
+contractual arrangements and the definitions of a
+financial liability and an equity instrument.
+Equity instruments
+An equity instrument is any contract that
+evidences a residual interest in the assets of
+an entity after deducting all of its liabilities.
+Equity instruments issued by a Group entity are
+recognised at the proceeds received, net of direct
+issue costs.
+Impairment of financial assets
+Repurchase of the parent Company's own equity
+instruments is recognised and deducted directly
+in equity. No gain or loss is recognised in profit or
+loss on the purchase, sale, issue or cancellation of
+the parent Company's own equity instruments.
+The component of compound financial
+instruments (convertible notes) issued by the
+Group are classified separately as financial
+liabilities and equity in accordance with the
+substance of the contractual arrangements
+and the definitions of a financial liability and an
+equity instrument.
+Initial recognition and measurement
+All financial liabilities are recognised initially at
+fair value and, in the case of loans and borrowings
+and payables, net of directly attributable
+transaction costs.
+The Company's financial liabilities include trade
+and other payables, loans and borrowings
+including bank overdrafts and lease liabilities,
+financial guarantee contracts and derivative
+financial instruments.
+All financial liabilities are subsequently measured
+at amortised cost using the effective interest
+method or at FVTPL.
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL
+when the financial liability is held for trading or
+is designated upon initial recognition as at fair
+value through profit or loss. Financial liabilities are
+classified as held for trading if they are incurred
+principally for the purpose of repurchasing in
+the near term or on initial recognition it is part
+of a portfolio of identified financial instruments
+that the Group manages together and has a
+recent actual pattern of short-term profit-taking.
+This category also includes derivative financial
+instruments that are not designated as hedging
+instruments in hedge relationships as defined by
+Ind AS 109. Gains or losses on liabilities held for
+trading are recognised in the profit or loss.
+Financial liabilities designated upon initial
+recognition at fair value through profit or loss
+are designated as such at the initial date of
+recognition, and only if the criteria in Ind AS 109
+are satisfied. For instruments not held-for-trading
+financial liabilities designated as at FVTPL, fair
+value gains/losses attributable to changes in
+own credit risk are recognised in OCI, unless
+the recognition of the effects of changes in the
+liability's credit risk in OCI would create or enlarge
+an accounting mismatch in profit or loss, in which
+case these effects of changes in credit risk are
+recognised in profit or loss. These gains/loss are
+not subsequently transferred to profit or loss. All
+other changes in fair value of such liability are
+recognised in the consolidated statement of profit
+or loss.
+Financial liabilities subsequently measured at
+amortised cost
+Financial liabilities that are not held-for-trading
+and are not designated as at FVTPL are measured
+at amortised cost in subsequent accounting
+periods. The carrying amounts of financial
+liabilities that are subsequently measured at
+amortised cost are determined based on the
+effective interest rate (EIR) method. Interest
+expense that is not capitalised as part of costs of
+an asset is included in the 'Finance costs' line item
+in the profit or loss.
+Scaling up Specialty. Leading with Care.
+225
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Compound financial instruments
+On derecognition of a financial asset in its
+entirety, the difference between the asset's
+carrying amount and the sum of the consideration
+received and receivable and the cumulative gain
+or loss that had been recognised in OCI and
+accumulated in equity is recognised in profit or
+loss if such gain or loss would have otherwise
+been recognised in profit or loss on disposal of
+that financial asset.
+When the Group has transferred its rights to
+receive cash flows from an asset or has entered
+into a pass-through arrangement, it evaluates
+if and to what extent it has retained the risks
+and rewards of ownership. When it has neither
+transferred nor retained substantially all of the
+risks and rewards of the asset, nor transferred
+control of the asset, the Group continues to
+recognise the transferred asset to the extent of
+the Group's continuing involvement. In that case,
+the Group also recognises an associated liability.
+The transferred asset and the associated liability
+are measured on a basis that reflects the rights
+and obligations that the Group has retained.
+assumed an obligation to pay the received cash
+flows in full without material delay to a third
+party under a 'pass-through' arrangement;
+and either (a) the Group has transferred
+substantially all the risks and rewards of the
+asset, or (b) the Group has neither transferred
+nor retained substantially all the risks and
+rewards of the asset, but has transferred
+control of the asset.
+The asset is held within a business model
+whose objective is to hold assets for
+collecting contractual cash flows, and
+Contractual terms of the asset give rise on
+specified dates to cash flows that are solely
+payments of principal and interest (SPPI) on
+the principal amount outstanding.
+After initial measurement, such financial assets
+are subsequently measured at amortised cost
+using the effective interest rate (EIR) method.
+Amortised cost is calculated by taking into
+account any discount or premium on acquisition
+and fees or costs that are an integral part of the
+EIR. The EIR amortisation is included in Other
+Income in the profit or loss. The losses arising
+from impairment are recognised in the profit
+or loss.
+Debt instrument at FVTOCI
+A 'debt instrument' is measured as at FVTOCI if
+both of the following criteria are met:
+a)
+b)
+The objective of the business model is
+achieved both by collecting contractual cash
+flows and selling the financial assets, and
+The contractual terms of the instrument give
+rise on specified dates to cash flows that are
+SPPI on the principal amount outstanding.
+Debt instruments included within the FVTOCI
+category are measured initially as well as at each
+reporting date at fair value. Fair value movements
+are recognised in the other comprehensive
+income (OCI). However, the Group recognises
+interest income, impairment losses and reversals
+and foreign exchange gain or loss in the profit or
+loss. On derecognition of the asset, cumulative
+gain or loss previously recognised in OCI is
+reclassified from the equity to profit or loss.
+Interest earned whilst holding FVTOCI debt
+instrument is reported as interest income using
+the EIR method.
+Scaling up Specialty. Leading with Care.
+223
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+224
+Debt instrument at FVTPL
+FVTPL is a residual category for debt instruments.
+Any debt instrument, which does not meet the
+criteria for categorisation as at amortised cost or
+as FVTOCI, is classified as at FVTPL.
+In addition, the Group may elect to designate
+a debt instrument, which otherwise meets
+amortised cost or FVTOCI criteria, as at FVTPL.
+However, such election is allowed only if
+doing so reduces or eliminates a measurement
+or recognition inconsistency (referred to as
+'accounting mismatch').
+Debt instruments included within the FVTPL
+category are measured at fair value with all the
+changes in the profit or loss.
+Equity instruments
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which
+are held for trading are classified as at FVTPL. For
+all other equity instruments, the Group may make
+an irrevocable election to present subsequent
+changes in the fair value in OCI. The Group makes
+such election on an instrument-by-instrument
+basis. The classification is made on initial
+recognition and is irrevocable.
+If the Group decides to classify an equity
+instrument as at FVTOCI, then all fair value
+changes on the instrument, including foreign
+exchange gain or loss and excluding dividends, are
+recognised in the OCI. There is no recycling of the
+amounts from OCI to profit or loss, even on sale
+of investment. However, the Group may transfer
+the cumulative gain or loss within equity.
+Equity instruments included within the FVTPL
+category are measured at fair value with all
+changes recognised in the profit or loss.
+Derecognition
+A financial asset (or, where applicable, a part
+of a financial asset or part of a group of similar
+financial assets) is primarily derecognised (i.e.
+removed from the Group's consolidated balance
+sheet) when:
+• The contractual rights to receive cash flows
+from the asset have expired, or
+• The Group has transferred its rights to receive
+contractual cash flows from the asset or has
+FOR THE YEAR ENDED MARCH 31, 2022
+226
+Subsequent measurement
+Financial guarantee contracts
+The Group has Employee Benefit Trust (EBT) for
+providing share-based payment to its employees.
+Own equity instruments that are reacquired
+(treasury shares) are deducted from equity. No
+gain or loss is recognised in profit or loss on the
+purchase, sale, issue or cancellation of the Group's
+own equity instruments. Consideration paid or
+received shall be recognised directly in equity.
+Scaling up Specialty. Leading with Care.
+227
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+k.
+228
+After initial recognition, such financial liabilities
+are subsequently measured at amortised
+cost using the EIR method. Amortised cost is
+calculated by taking into account any discount or
+premium on acquisition and fees or costs that are
+an integral part of the EIR. The EIR amortisation is
+included as finance costs in the profit or loss.
+Leases
+The Company assesses at contract inception
+whether a contract is, or contains, a lease. That
+is, if the contract conveys the right to control the
+use of an identified asset for a period of time in
+exchange for consideration. To assess whether a
+contract conveys the right to control the use of an
+identified asset, the Company assesses whether:
+(i) the contract involves the use of an identified
+asset (ii) the Company has substantially all of the
+economic benefits from use of the asset through
+the period of the lease and (iii) the Company has
+the right to direct the use of the asset.
+Company as a lessee
+The Company applies a single recognition and
+measurement approach for all leases, except
+for short-term leases and leases of low-
+value assets. The Company recognises lease
+liabilities to make lease payments and right-
+of-use assets representing the right to use the
+underlying assets.
+i)
+Right-of-use assets
+The Company recognises right-of-use assets
+at the commencement date of the lease (i.e.,
+the date the underlying asset is available
+for use). Right-of-use assets are measured
+at cost, less any accumulated depreciation
+and impairment losses, and adjusted for any
+remeasurement of lease liabilities. The cost
+of right-of-use assets includes the amount
+of lease liabilities recognised, initial direct
+costs incurred, and lease payments made
+at or before the commencement date less
+any lease incentives received. Right-of-use
+assets are depreciated on a straight-line
+basis over the shorter of the lease term and
+ii)
+the estimated useful lives of the assets,
+as follows:
+Asset Category
+Leasehold land
+Building
+Plant and Machinery
+Furniture and Fixture
+Vehicles
+Office Equipment
+No. of years
+49-196
+The right-of-use assets are also subject
+to impairment. Refer to the accounting
+policies in section (g) Impairment of
+non-financial assets.
+Lease Liabilities
+1-99
+1-5
+Treasury shares
+The Group designates certain foreign
+currency liability as hedge against certain net
+investment in foreign subsidiaries. Hedges
+of net investments in foreign operations
+are accounted similar to cash flow hedges.
+Any gain or loss on the hedging instrument
+relating to the effective portion of the hedge
+is recognised in other comprehensive income
+and held in foreign currency translation
+reserve ('FCTR')- a component of equity.
+The ineffective portion of the gain or loss
+on these hedges is immediately recognised
+in the consolidated statement of profit and
+loss. The amounts accumulated in equity are
+included in the statement of profit and loss
+when the foreign operation is disposed or
+partially disposed.
+Dividend distribution to equity holders of the parent
+Final dividend on equity shares (including
+dividend tax on distribution of such dividends,
+if any) are recorded as a liability on the date of
+their approval by the shareholders and interim
+dividends are recorded as a liability on the date of
+declaration by the Company's Board of Directors.
+As per the corporate laws in India, a distribution
+of final dividend is authorised when it is approved
+by the shareholders. A corresponding amount is
+recognised directly in equity.
+If the hedging instrument expires or is
+sold, terminated or exercised or if its
+designation as a hedge is revoked, or when
+the hedge no longer meets the criteria for
+hedge accounting, any cumulative gain or
+loss previously recognised in OCI remains
+separately in equity until the forecast
+transaction occurs or the foreign currency
+firm commitment is met. When a forecast
+transaction is no longer expected to occur,
+the gain or loss accumulated in equity is
+recognised immediately in profit or loss.
+Financial guarantee contracts are those contracts
+that require a payment to be made to reimburse
+the holder for a loss it incurs because the
+specified debtor fails to make a payment when
+due in accordance with the terms of a debt
+instrument. Financial guarantee contracts are
+recognised initially as a liability at fair value,
+adjusted for transaction costs that are directly
+attributable to the issuance of the guarantee. If
+not designated as at FVTPL, are subsequently
+measured at the higher of the amount of loss
+allowance determined as per impairment
+requirements of Ind AS 109 and the amount
+initially recognised less cumulative amount of
+income recognised.
+Derecognition
+A financial liability is derecognised when the
+obligation under the liability is discharged or
+cancelled or expires. When an existing financial
+liability is replaced by another from the same
+lender on substantially different terms, or the
+terms of an existing liability are substantially
+modified, such an exchange or modification
+is treated as the derecognition of the original
+liability and the recognition of a new liability.
+The difference between the carrying amount
+of the financial liability derecognised and the
+consideration paid and payable is recognised in
+profit or loss.
+(iii) Net Investment Hedge
+Derivatives embedded in non-derivative host
+contracts that are not financial assets within
+the scope of Ind AS 109 are accounted for as
+separate derivatives and recorded at fair value if
+their economic characteristics and risks are not
+closely related to those of the host contracts
+and the host contracts are not held for trading
+or designated at fair value though profit or loss.
+These embedded derivatives are measured at
+fair value with changes in fair value recognised
+in profit or loss, unless designated as effective
+hedging instruments.
+Reclassification of financial assets
+The Group determines classification of financial
+assets and liabilities on initial recognition. After
+initial recognition, no reclassification is made for
+financial assets which are equity instruments
+and financial liabilities. For financial assets which
+are debt instruments, a reclassification is made
+only if there is a change in the business model for
+managing those assets. Changes to the business
+model are expected to be infrequent. The
+Group's senior management determines change
+in the business model as a result of external or
+internal changes which are significant to the
+Group's operations. Such changes are evident to
+external parties. A change in the business model
+occurs when the Group either begins or ceases
+to perform an activity that is significant to its
+operations. If the Group reclassifies financial
+assets, it applies the reclassification prospectively
+from the reclassification date which is the first
+day of the immediately next reporting period
+following the change in business model. The
+Group does not restate any previously recognised
+gains, losses (including impairment gains or losses)
+or interest.
+Derivative financial instruments and hedge
+accounting
+Initial recognition and subsequent measurement
+The Group uses derivative financial instruments,
+such as forward currency contracts, full currency
+swap, principal only swap, options and interest
+rate swaps to hedge its foreign currency risks and
+interest rate risks respectively. Such derivative
+financial instruments are initially recognised at fair
+value on the date on which a derivative contract
+is entered into and are subsequently re-measured
+at fair value at the end of each reporting period.
+Derivatives are carried as financial assets when
+the fair value is positive and as financial liabilities
+when the fair value is negative.
+Any gains or losses arising from changes in the
+fair value of derivatives are taken directly to
+profit or loss, except for the effective portion
+of cash flow hedges, which is recognised in OCI
+and later reclassified to profit or loss when the
+hedge item affects profit or loss or treated as
+basis adjustment if a hedged forecast transaction
+subsequently results in the recognition of a non-
+financial asset or non-financial liability.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+Embedded derivatives
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+The effective portion of changes in the fair
+value of the hedging instrument is recognised
+in OCI in the cash flow hedge reserve,
+while any ineffective portion is recognised
+immediately in profit or loss. The Group
+uses forward currency contracts as hedges
+of its exposure to foreign currency risk in
+forecast transactions and firm commitments.
+Amounts recognised as OCI are transferred
+to profit or loss when the hedged transaction
+affects profit or loss, such as when a forecast
+sale occurs. When the hedged item is the
+cost of a non-financial asset or non-financial
+liability, the amounts recognised as OCI are
+transferred to the initial carrying amount of
+the non-financial asset or liability.
+Changes in fair value of the designated
+portion of derivatives that qualify as fair
+value hedges are recognised in profit or loss
+immediately, together with any changes in
+the fair value of the hedged asset or liability
+that are attributable to the hedged risk.
+Fair value hedges
+(i)
+(ii) Cash flow hedges
+At the inception of a hedge relationship, the
+Group formally designates and documents the
+hedge relationship to which the Group wishes to
+apply hedge accounting and the risk management
+objective and strategy for undertaking the
+hedge. The documentation includes the Group's
+risk management objective and strategy for
+undertaking hedge, the hedging/economic
+relationship, the hedged item or transaction, the
+nature of the risk being hedged, hedge ratio and
+how the entity will assess the effectiveness of
+changes in the hedging instrument's fair value in
+offsetting the exposure to changes in the hedged
+item's fair value or cash flows attributable to the
+hedged risk. Such hedges are expected to be
+highly effective in achieving offsetting changes
+in fair value or cash flows and are assessed on an
+ongoing basis to determine that they actually have
+been highly effective throughout the financial
+reporting periods for which they were designated.
+• Hedges of a net investment in a
+foreign operation.
+• Cash flow hedges when hedging the exposure
+to variability in cash flows that is either
+attributable to a particular risk associated
+with a recognised asset or liability or a
+highly probable forecast transaction or the
+foreign currency risk in an unrecognised
+firm commitment
+• Fair value hedges when hedging the exposure
+to changes in the fair value of a recognised
+asset or liability or an unrecognised
+firm commitment.
+For the purpose of hedge accounting, hedges are
+classified as:
+Hedges that meet the strict criteria for hedge
+accounting are accounted for, as described below:
+2,933.2
+9.6
+1,324.2
+1.1
+1,157.4
+440.9
+As at March 31, 2022
+(733.0)
+(3.8)
+(408.6)
+44.8
+Disposals
+1,115.0
+6.9
+634.5
+428.8
+Depreciation expense
+132.5
+1.0
+131.5
+Taken over on acquisition
+Carrying amount
+(320.6)
+As at March 31, 2021
+Trade receivables
+1,368.2
+As at March 31, 2021
+As at March 31, 2022
+Quantity
+* in Million
+Quantity
+* in Million
+Equity instruments - Quoted - At fair value through other
+comprehensive income
+Amneal Pharmaceuticals Inc.
+Shares of USD 0.01 each fully paid
+Krebs Biochemicals and Industries Limited
+2,868,623
+906.7
+2,868,623
+1,412.2
+1,036,943
+148.7
+1,054.4
+2,167,679
+933.3
+2,167,679
+scPharmaceuticals Inc.
+Shares of USD 0.00001 each fully paid
+278.3
+5,151.1
+4,610.4
+914,107
+Krystal Biotech, Inc.
+Shares of 10 each fully paid
+90.2
+1,050,000
+914,107
+340.2
+278.3
+340.2
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+237
+2,327.3
+2,320.6
+2,327.3
+2,320.6
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Scaling up Specialty. Leading with Care.
+[* Nil (March 31, 2021: 4,389)]
+Generic Solar Power LLP
+0.0
+746.1
+819.4
+Trumpcard Advisors and Finvest LLP
+Aggregate carrying value of unquoted investments
+Others (equity instruments received as part of distribution)
+FOR THE YEAR ENDED MARCH 31, 2022
+As at March 31, 2022
+Quantity
+278.3
+15,853
+340.2
+15,853
+NOTE: 6 INVESTMENTS (NON-CURRENT)
+Aggregate carrying value of unquoted investments
+NOTE: 5 INVESTMENT IN JOINT VENTURE (NON-CURRENT)
+Artes Biotechnology GmbH
+Unquoted, fully paid
+(Carrying amount determined using equity method of accounting)
+* in Million
+As at March 31, 2021
+Quantity
+* in Million
+₹
+Equity instruments
+Limited liability partnership
+287.2
+Equity instruments - Quoted - At fair value through Profit or Loss
+30,205.8
+35,747.6
+ONGC Videsh 4.625% Regd. Notes maturing July 15, 2024#
+NTPC 4.375% Regd. Euro Medium Term Notes maturing
+November 26, 2024#
+160,000
+100,000
+1,238.5
+770.5
+160,000
+1,284.1
+100,000
+800.9
+State Bank of India 4.875% Notes maturing April 17, 2024#
+Venture funds - Unquoted - At fair value through Profit or Loss
+Others - Quoted - At fair value through other comprehensive
+income (small denomination U.S Treasuries, certificate of deposits
+and commercial papers)
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+70,000
+545.4
+70,000
+565.7
+6,444.2
+2,042.7
+9,072.4
+238
+1,122.8
+1,129.7
+Aggregate amount of impairment in value of investments
+# Investment in bonds are encumbered.
+10,800.1
+8,188.4
+Bonds (various small denomination)
+Aggregate amount of unquoted investments before impairment
+42,427.0
+52,541.0
+42,427.0
+62,218.3
+49,485.7
+4,238.9
+52,541.0
+Debentures/bonds - Quoted - At fair value through other
+comprehensive income
+400.0
+402.5
+Shares of 10 each fully paid
+Biotech Consortium India Limited
+(934.0)
+(934.0)
+Less: Impairment in value of investment
+Shares of 10 each fully paid
+50,000
+934.0
+934.0
+9,340,000
+Shimal Research Laboratories Limited
+Equity instruments - Unquoted - At fair value through Profit or Loss
+1,718.3
+737.8
+9,340,000
+477.6
+0.5
+0.5
+ABCD Technologies LLP
+Limited liability partnership - Unquoted - At fair value through
+other comprehensive income
+Others
+Less: Impairment in value of investment
+Reanal Finomvegyszergyar Zrt.
+Less: Impairment in value of investment
+50,000
+(188.3)
+204.9
+188.3
+38,894
+195.2
+38,894
+(0.5)
+(0.5)
+(195.2)
+212.0
+1,613.0
+113.1
+55.9
+1,492.1
+1,609.5
+Taken over on acquisition
+Additions
+Disposals
+As at March 31, 2022
+3,112.3
+3,112.3
+695.5
+9,906.2
+10,601.7
+(0.2)
+4,521.1
+(64.7)
+110,914.4
+(64.9)
+115,435.5
+236
+Corporate Overview
+Statutory Reports
+As at March 31, 2022
+Disposals
+Amortisation expense
+Consolidation adjustments
+As at March 31, 2021
+Disposals
+117.4
+Amortisation expense
+As at March 31, 2020
+Accumulated amortisation and impairment
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Consolidation adjustments
+Consolidation adjustments
+100,176.9
+96,468.5
+Computer Software
+* in Million
+Other than internally generated
+NOTE: 3B OTHER INTANGIBLE ASSETS
+4,841.5
+14.5
+Trademarks and
+Designs
+1,608.3
+1,484.6
+1,732.2
+As at March 31, 2022
+4,560.5
+19.5
+1,559.8
+1.9
+Carrying amount
+A receivable represents the Group's right to an
+amount of consideration that is unconditional
+(i.e., only the passage of time is required before
+payment of the consideration is due).
+As at March 31, 2020
+3,708.4
+As at March 31, 2021
+(1,152.4)
+(666.1)
+(486.3)
+2,164.7
+At cost or deemed cost
+1,034.3
+(2,338.3)
+101,502.9
+98,407.0
+(2,306.7)
+3,095.9
+(31.6)
+Disposals
+Consolidation adjustments
+Additions
+1,130.4
+428,571
+As at March 31, 2021
+Footnotes:
+55,389.1
+(a) Buildings include * 8,620 (March 31, 2021: 8,620) towards cost of shares in a co-operative housing society and also includes * 4.5 Million
+(March 31, 2021 : 4.5 Million) towards cost of flats not registered in the name of the Parent company but is entitled to right of use and
+occupancy.
+(b) Other intangible assets consisting of trademarks, brands acquired, research and development, designs, technical know-how, licences,
+non-compete fees and other intangible assets are available to the Group in perpetuity. The amortisable amount of intangible assets is arrived
+at, based on the management's best estimates of useful lives of such assets after due consideration as regards their expected usage, the
+product life cycles, technical and technological obsolescence, market demand for products, competition and their expected future benefits to
+the Group.
+(c)
+(d)
+For details of assets pledged as security Refer note 66.
+88.7 Million related to impairment of property, plant and equipment and other intangible assets has been included above under depreciation
+and amortisation expense.
+(e) The aggregate amortisation has been included under depreciation and amortisation expense in the consolidated statement of profit and loss.
+NOTE: 4 INVESTMENT IN ASSOCIATES (NON-CURRENT)
+As at March 31, 2022
+Quantity
+in Million
+As at March 31, 2021
+Quantity
+* in Million
+(Carrying amount determined using equity method of
+accounting)
+Unquoted, fully paid
+Equity instruments
+Medinstill LLC
+153
+57.8
+112.2
+428,571
+153
+WRS Bioproducts Pty Ltd
+Intact Solution LLC
+53,419.4
+Ltd.) share application money
+Tarsier Pharma Ltd (Formerly known as Tarsius Pharma
+1,071.4
+158.0
+1,999
+345,622
+887.7
+443.5
+1,999
+455,447
+Tarsier Pharma Ltd (Formerly known as Tarsius Pharma
+Ltd.)
+182.8
+1,969.7
+50,303.5
+48,595.5
+(478.5)
+8,334.0
+7,830.1
+503.9
+(1,058.0)
+(1,123.7)
+(446.8)
+65.7
+41,613.4
+1,909.3
+Total
+Trademarks and
+Designs
+Computer Software
+* in Million
+43,522.7
+As at March 31, 2022
+(925.3)
+47,873.0
+1,708.0
+60,046.4
+57,495.0
+2,551.4
+(52.4)
+(52.3)
+2,000.4
+(0.1)
+9,007.5
+435.8
+782.1
+666.8
+115.3
+49,873.4
+9,443.3
+(i) For details of Ind AS 116 disclosure refer Note 54.
+Total
+(0.6)
+Plant and
+equipment
+Furniture
+and fixtures
+and fixtures
+given under
+operating
+lease
+Vehicles
+Office
+equipment
+Total
+At cost or deemed cost
+As at March 31, 2020
+4,250.5
+56,379.1
+Buildings
+including
+given on
+lease
+109,746.5
+0.4
+Consolidation adjustments
+(56.8)
+(336.4)
+353.3
+(51.7)
+1,060.2
+5.2
+2,289.4
+177,985.4
+(98.6)
+(185.0)
+4,259.3
+Freehold
+land
+Furniture
+* in Million
+Minimum Alternate Tax ('MAT') credit is
+recognised as deferred tax asset only when and to
+the extent there is convincing evidence that the
+Company will pay normal income tax during the
+period for which the MAT credit can be carried
+forward for set-off against the normal tax liability.
+MAT credit recognised as an asset is reviewed
+at each Balance Sheet date and written down to
+the extent the aforesaid convincing evidence no
+longer exists.
+Accruals for uncertain tax positions require
+management to make judgments of potential
+exposures. Accruals for uncertain tax positions
+are measured using either the most likely amount
+or the expected value amount depending on
+which method the entity expects to better predict
+the resolution of the uncertainty. Tax benefits
+are not recognised unless the management based
+Scaling up Specialty. Leading with Care.
+233
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+234
+u.
+upon its interpretation of applicable laws and
+regulations and the expectation of how the tax
+authority will resolve the matter concludes that
+such benefits will be accepted by the authorities.
+Once considered probable of not being accepted,
+management reviews each material tax benefit
+and reflects the effect of the uncertainty in
+determining the related taxable amounts.
+Earnings per share
+The parent Company presents basic and diluted
+earnings per share ("EPS") data for its equity
+shares. Basic EPS is calculated by dividing the
+profit or loss attributable to equity shareholders
+of the parent Company by the weighted average
+number of equity shares outstanding during the
+period. Diluted EPS is determined by adjusting the
+profit or loss attributable to equity shareholders
+and the weighted average number of equity
+shares outstanding for the effects of all dilutive
+potential ordinary shares, which includes all stock
+options granted to employees.
+V.
+W.
+The number of equity shares and potentially
+dilutive equity shares are adjusted retrospectively
+for all periods presented for any share splits
+and bonus shares issues including for changes
+effected prior to the approval of the financial
+statements by the Board of Directors.
+Exceptional items
+Exceptional items refer to items of income or
+expense, including tax items, within the statement
+of profit and loss from ordinary activities which
+are non-recurring and are of such size, nature
+or incidence that their separate disclosure is
+considered necessary to explain the performance
+of the Company.
+Recent Accounting pronouncements
+Standards issued but not yet effective and not
+early adopted by the Company
+The Ministry of Corporate Affairs ("MCA")
+notifies new standard or amendments to the
+existing standards. There is no such notification
+which would have been applicable from April
+01, 2022.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 3A(1) PROPERTY, PLANT AND EQUIPMENT
+Additions
+234.3
+1,205.6
+7,372.2
+Taken over on acquisition
+123.3
+1,273.4
+18.1
+1,414.8
+Additions
+2,346.1
+Disposals
+As at March 31, 2022
+1,111.9
+(306.2) (1,342.7) (1,894.7)
+6,448.1 57,836.1 123,628.9
+6,686.2
+77.7
+199.1
+335.6
+10,756.6
+(145.4)
+(138.2)
+(25.6)
+(3,852.8)
+4,231.3
+1,148.0
+3,022.3
+196,314.7
+Accumulated depreciation
+and impairment
+2,198.7
+A deferred tax asset is recognised to the extent
+that it is probable that future taxable profits
+will be available against which the temporary
+difference can be utilised. Deferred tax assets are
+reviewed at each reporting date and are reduced
+to the extent that it is no longer probable that the
+related tax benefit will be realised. Withholding
+tax arising out of payment of dividends to
+shareholders under the Indian Income tax
+regulations is not considered as tax expense for
+the Company and all such taxes are recognised in
+the consolidated statement of changes in equity
+as part of the associated dividend payment.
+10.1
+72.2
+131.8
+125.8
+564.9
+9,634.6
+Disposals
+(2.5)
+(157.1)
+(1,183.0)
+(130.7)
+(0.4)
+(110.4)
+(53.5)
+(1,637.6)
+As at March 31, 2021
+4,425.5
+57,091.2
+116,289.0
+4,208.7
+1,080.8
+2,702.2
+185,797.4
+Consolidation adjustments
+(17.3)
+852.4
+1,275.0
+6.3
+The Company recognises a deferred tax asset
+arising from unused tax losses or tax credits only
+to the extent that the entity has sufficient taxable
+temporary differences or there is convincing other
+evidence that sufficient taxable profit will be
+available against which the unused tax losses or
+unused tax credits can be utilised by the entity.
+Deferred tax is measured at the tax rates that
+are expected to be applied to the temporary
+differences when they reverse, based on the laws
+that have been enacted or substantively enacted
+by the end of the reporting period. Deferred tax
+assets and liabilities are offset if there is a legally
+enforceable right to set off corresponding current
+tax assets against current tax liabilities and the
+deferred tax assets and deferred tax liabilities
+relate to income taxes levied by the same tax
+authority on the Company.
+Deferred tax is recognised on temporary
+differences between the carrying amounts of
+assets and liabilities in the consolidated financial
+statements and the corresponding tax bases used
+in the computation of taxable profit. Deferred tax
+is not recognised for the temporary differences
+that arise on the initial recognition of assets or
+liabilities in a transaction that is not a business
+combination and that affects neither accounting
+nor taxable profits and taxable temporary
+differences arising upon the initial recognition
+of goodwill.
+Present obligations arising under onerous
+contracts are recognised and measured as
+provisions. An onerous contract is considered to
+exist where the Group has a contract under which
+the unavoidable costs of meeting the obligations
+under the contract exceed the economic benefit
+expected to be received from the contract.
+Onerous contracts
+A provision for restructuring is recognised when
+the Group has a detailed formal restructuring
+plan and has raised a valid expectation in those
+affected that it will carry out the restructuring
+by starting to implement the plan or announcing
+its main features to those affected by it. The
+measurement of a restructuring provision includes
+only the direct expenditure arising from the
+restructuring, which are those amounts that are
+both necessarily entailed by the restructuring
+and not associated with the ongoing activities of
+the entity.
+Restructuring
+230
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+229
+Scaling up Specialty. Leading with Care.
+If the effect of the time value of money is
+material, provisions are determined by discounting
+the expected future cash flows at a pre-tax rate
+that reflects current market assessments of the
+time value of money and the risks specific to the
+liability. Where discounting is used, the increase
+in the provision due to the passage of time is
+recognised as a finance cost.
+Provisions are recognised when the Group has
+a present obligation (legal or constructive) as a
+result of past event, it is probable that an outflow
+of resources embodying economic benefits
+will be required to settle the obligation and a
+reliable estimate can be made of the amount
+of obligation. When the Company expects
+some or all of a provision to be reimbursed,
+for example, under an insurance contract, the
+reimbursement is recognised as a separate asset,
+but only when the reimbursement is certain. The
+expense relating to a provision is presented in the
+consolidated statement of profit and loss net of
+any reimbursement.
+Provisions, contingent liabilities and contingent
+assets
+For the purpose of the consolidated statement of
+cash flows, cash and cash equivalents consist of
+cash and short-term deposits, as defined above,
+net of outstanding bank overdrafts as they are
+considered an integral part of the Company's
+cash management.
+Cash and cash equivalent in the consolidated
+balance sheet comprise cash at banks and on hand
+and short-term deposits with an original maturity
+of three months or less, which are subject to an
+insignificant risk of changes in value.
+Cash and cash equivalents
+The factors that the Company considers in
+determining the allowance for slow moving,
+obsolete and other non-saleable inventory
+include estimated shelf life, planned product
+discontinuances, price changes, ageing of
+inventory and introduction of competitive new
+products, to the extent each of these factors
+impact the Company's business and markets. The
+Company considers all these factors and adjusts
+the inventory provision to reflect its actual
+experience on a periodic basis
+n.
+m.
+Net realisable value is the estimated selling
+price in the ordinary course of business, less
+the estimated costs of completion and costs
+necessary to make the sale.
+Inventories consisting of raw materials and
+packing materials, work-in-progress, stock-in-
+trade, stores and spares and finished goods are
+measured at the lower of cost and net realisable
+value. The cost of all categories of inventories
+is based on the weighted average method. Cost
+of raw materials and packing materials, stock-
+in-trade, stores and spares includes cost of
+purchases and other costs incurred in bringing the
+inventories to its present location and condition.
+Cost of work-in-progress and finished goods
+comprises direct material, direct labour and an
+appropriate proportion of variable and fixed
+overhead expenditure.
+Inventories
+Rental income from operating lease is
+generally recognised on a straight-line basis
+over the term of the relevant lease. Where
+the rentals are structured solely to increase
+in line with expected general inflation to
+compensate for the Group's expected
+inflationary cost increases, such increases
+are recognised in the year in which such
+benefits accrue. Initial direct costs incurred
+in negotiating and arranging an operating
+lease are added to the carrying amount
+of the leased asset and recognised over
+the lease term on the same basis as rental
+income. Contingent rents are recognised
+as revenue in the period in which they
+are earned.
+Group as a lessor
+The Company applies the short-term
+lease recognition exemption to its short-
+term leases (i.e., those leases that have a
+lease term of 12 months or less from the
+commencement date and do not contain a
+purchase option). It also applies the lease of
+low-value assets recognition exemption to
+leases that are considered to be low value.
+Lease payments on short-term leases and
+leases of low-value assets are recognised
+as expense on a straight-line basis over the
+lease term.
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+iii) Short-term leases and leases of low-value
+assets
+(i)
+(ii) Present obligations arising from past events
+where it is not probable that an outflow
+of resources will be required to settle the
+obligation or a reliable estimate of the
+amount of the obligation cannot be made.
+40.0
+A contract asset is the right to consideration in
+exchange for goods or services transferred to the
+customer. If the Group performs by transferring
+goods or services to a customer before the
+customer pays consideration or before payment is
+due, a contract asset is recognised for the earned
+consideration that is conditional.
+Contract assets
+Contract balances
+The Group accounts for sales returns accrual
+by recording an allowance for sales returns
+concurrent with the recognition of revenue at the
+time of a product sale. This allowance is based on
+the Group's estimate of expected sales returns.
+With respect to established products, the Group
+considers its historical experience of sales returns,
+levels of inventory in the distribution channel,
+estimated shelf life, product discontinuances,
+price changes of competitive products, and
+the introduction of competitive new products,
+to the extent each of these factors impact the
+Group's business and markets. With respect to
+new products introduced by the Group, such
+products have historically been either extensions
+of an existing line of product where the Group
+has historical experience or in therapeutic
+categories where established products exist
+and are sold either by the Company or the
+Company's competitors.
+Sales returns
+performance obligations. Milestone payments
+which are contingent on achieving certain clinical
+milestones are recognised as revenues either on
+achievement of such milestones, if the milestones
+are considered substantive, or over the period the
+Company has continuing performance obligations,
+if the milestones are not considered substantive.
+If milestone payments are creditable against
+future royalty payments, the milestones are
+deferred and released over the period in which
+the royalties are anticipated to be received.
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+Revenues include amounts derived from product
+out-licensing agreements. These arrangements
+typically consist of an initial up-front payment on
+inception of the license and subsequent payments
+dependent on achieving certain milestones in
+accordance with the terms prescribed in the
+agreement. Non-refundable up-front license fees
+received in connection with product out-licensing
+agreements are deferred and recognised over
+the period in which the Company has continuing
+Out-licensing arrangements
+Revenue in an amount equal to the base purchase
+price is recognised in these transactions upon
+delivery of products to the business partners. An
+additional amount representing the profit share
+component is recognised as revenue only to the
+extent that it is highly probable that a significant
+reversal will not occur.
+The Company from time to time enters into
+arrangements for the sale of its products in
+certain markets. Under such arrangements,
+the Company sells its products to the business
+partners at a base purchase price agreed upon in
+the arrangement and is also entitled to a profit
+share which is over and above the base purchase
+price. The profit share is typically dependent
+on the ultimate net sale proceeds or net profits,
+subject to any reductions or adjustments that are
+required by the terms of the arrangement.
+Profit Sharing Revenues
+In determining the transaction price, the Group
+considers the effects of variable consideration,
+the existence of significant financing components,
+non-cash consideration, and consideration
+payable to the customer (if any). The Group
+estimates variable consideration at contract
+inception until it is highly probable that a
+significant revenue reversal in the amount of
+cumulative revenue recognised will not occur
+when the associated uncertainty with the variable
+consideration is subsequently resolved.
+concluded that it is the principal in its revenue
+arrangements, since it is the primary obligor in
+all of its revenue arrangement, as it has pricing
+latitude and is exposed to inventory and credit
+risks. Revenue is stated net of goods and service
+tax and net of returns, chargebacks, rebates and
+other similar allowances. These are calculated on
+the basis of historical experience and the specific
+terms in the individual contracts.
+Revenue from contracts with customers is
+recognised when control of the goods or services
+are transferred to the customer at an amount
+that reflects the consideration to which the
+Group expects to be entitled in exchange for
+those goods or services. The Group has generally
+Sale of goods
+Revenue
+0.
+Contingent assets are not recognised in the
+consolidated financial statements. A contingent
+asset is disclosed where an inflow of economic
+benefits is probable. Contingent assets are
+assessed continually and, if it is virtually certain
+that an inflow of economic benefits will arise, the
+asset and related income are recognised in the
+period in which the change occurs
+Possible obligations which will be confirmed
+only by future events not wholly within the
+control of the Company, or
+As at March 31, 2020
+I.
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method
+with actuarial valuations being carried out at
+the end of each annual reporting period. The
+present value of the defined benefit obligation is
+determined by discounting the estimated future
+cash outflows by reference to market yields at
+the end of the reporting period on government
+bonds. The currency and term of the government
+bonds shall be consistent with the currency and
+estimated term of the post-employment benefit
+obligations. The current service cost of the
+defined benefit plan, recognised in the profit or
+loss as employee benefits expense, reflects the
+increase in the defined benefit obligation resulting
+from employee service in the current year, benefit
+changes, curtailments and settlements. Past
+service costs are recognised in profit or loss in the
+period of a plan amendment. The net interest cost
+is calculated by applying the discount rate to the
+net balance of the defined benefit obligation and
+the fair value of plan assets. This cost is included
+in employee benefit expense in profit or loss.
+Actuarial gains and losses arising from experience
+adjustments and changes in actuarial assumptions
+are charged or credited to OCI in the period in
+which they arise and is reflected immediately in
+retained earnings and is not reclassified to profit
+or loss.
+Termination benefits
+Termination benefits are recognised as an
+expense in the statement of profit and loss
+when the Company is demonstrably committed,
+without realistic possibility of withdrawal,
+to a formal detailed plan to either terminate
+employment before the normal retirement date,
+or to provide termination benefits as a result of an
+offer made to encourage voluntary redundancy.
+Termination benefits for voluntary redundancies
+are recognised as an expense in the statement of
+profit and loss if the Company has made an offer
+encouraging voluntary redundancy, it is probable
+that the offer will be accepted, and the number of
+acceptances can be estimated reliably.
+Short-term and Other long-term employee
+benefits
+Accumulated leave, which is expected to be
+utilised within the next 12 months, is treated
+as short-term employee benefit. The Company
+measures the expected cost of such absences
+as the additional amount that it expects to pay
+as a result of the unused entitlement that has
+accumulated at the reporting date.
+The Group treats accumulated leave expected
+to be carried forward beyond twelve months, as
+long-term employee benefit for measurement
+purposes. Such long-term compensated absences
+are provided for based on the actuarial valuation
+using the projected unit credit method at the
+year-end. Actuarial gains/losses are immediately
+taken to the consolidated statement of profit and
+loss and are not deferred.
+The Group's net obligation in respect of other
+long term employee benefits is the amount of
+future benefit that employees have earned in
+return for their service in the current and previous
+periods. That benefit is discounted to determine
+its present value.
+Defined contribution plans
+The Group's contributions to defined contribution
+plans are recognised as an expense as and when
+the services are received from the employees
+entitling them to the contributions. The Group
+does not have any obligation other than the
+contribution made.
+Share-based payment arrangements
+The grant date fair value of options granted to
+employees is recognised as an employee expense,
+with a corresponding increase in equity, on a
+straight line basis, over the vesting period, based
+on the Group's estimate of equity instruments
+that will eventually vest. At the end of each
+reporting period, the Group revises its estimate
+of the number of equity instruments expected
+to vest. The impact of the revision of the original
+estimates, if any, is recognised in profit or loss
+such that the cumulative expense reflects
+the revised estimate, with a corresponding
+adjustment to the equity-settled employee
+benefits reserve.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+S.
+t.
+For cash-settled share-based payments, a liability
+is recognised for the goods or services acquired,
+measured initially at the fair value of the liability.
+At the end of each reporting period until the
+liability is settled, and at the date of settlement,
+the fair value of the liability is remeasured, with
+any changes in fair value recognised in profit or
+loss for the year.
+Borrowing costs
+Borrowing costs that are directly attributable to
+the construction or production of a qualifying
+asset are capitalised as part of the cost of that
+asset. All other borrowing costs are expensed in
+the period in which they occur. Borrowing costs
+consist of interest and other costs that an entity
+incurs in connection with the borrowing of funds.
+Borrowing cost also includes exchange differences
+to the extent regarded as an adjustment to the
+borrowing costs. A qualifying asset is one that
+necessarily takes substantial period of time to get
+ready for its intended use.
+Income tax
+Income tax expense consists of current and
+deferred tax. Income tax expense is recognised in
+profit or loss except to the extent that it relates
+to items recognised in OCI or directly in equity,
+in which case it is recognised in OCI or directly in
+equity respectively. Current tax is the expected
+tax payable on the taxable profit for the year,
+using tax rates enacted or substantively enacted
+by the end of the reporting period, and any
+adjustment to tax payable in respect of previous
+years. Current tax assets and tax liabilities
+are offset where the Company has a legally
+enforceable right to offset and intends either to
+settle on a net basis, or to realise the asset and
+settle the liability simultaneously.
+The Company operates a defined benefit gratuity
+plan which requires contribution to be made to a
+separately administered fund.
+FOR THE YEAR ENDED MARCH 31, 2022
+Defined benefit plans
+to compensate, are expensed. When the grant
+relates to an asset, the Company deducts such
+grant amount from the carrying amount of
+the asset.
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+Contract liabilities
+A contract liability is the obligation to transfer
+goods or services to a customer for which the
+p.
+q.
+Group has received consideration (or an amount
+of consideration is due) from the customer. If a
+customer pays consideration before the Group
+transfers goods or services to the customer, a
+contract liability is recognised when the payment
+is made or the payment is due (whichever is
+earlier). Contract liabilities are recognised
+as revenue when the Group performs under
+the contract
+Rendering of services
+Revenue from services rendered is recognised in
+the profit or loss as the underlying services are
+performed. Upfront non-refundable payments
+received are deferred and recognised as revenue
+over the expected period over which the related
+services are expected to be performed.
+Royalties
+Royalty revenue is recognised on an accrual
+basis in accordance with the substance of
+the relevant agreement (provided that it is
+probable that economic benefits will flow to
+the Group and the amount of revenue can
+be measured reliably). Royalty arrangements
+that are based on production, sales and other
+measures are recognised by reference to the
+underlying arrangement.
+Dividend and interest income
+Dividend income is recognised when the Group's
+right to receive the payment is established,
+which is generally when shareholders approve
+the dividend.
+Interest income from a financial asset is
+recognised when it is probable that the economic
+benefits will flow to the Group and the amount of
+income can be measured reliably. Interest income
+is accrued on a time basis, by reference to the
+principal outstanding and at the effective interest
+rate applicable, which is the rate that exactly
+discounts estimated future cash receipts through
+the expected life of the financial asset to that
+asset's net carrying amount on initial recognition.
+Government grants
+The Group recognises government grants only
+when there is reasonable assurance that the
+conditions attached to them will be complied
+with, and the grants will be received. When the
+grant relates to an expense item, it is recognised
+as income on a systematic basis over the periods
+that the related costs, for which it is intended
+Scaling up Specialty. Leading with Care.
+231
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+232
+r.
+Employee benefits
+Consolidation adjustments
+FOR THE YEAR ENDED MARCH 31, 2022
+55,614.6
+Consolidation adjustments
+47.9
+14.3
+0.0
+52.6
+(1.6)
+113.2
+Taken over on acquisition
+379.7
+6,939.2
+3.0
+Additions
+132.8
+303.3
+841.0
+3.1
+1,280.2
+Disposals
+(5.9)
+(336.3)
+382.7
+(594.4)
+26.6
+2,281.0
+(0.3)
+(6.6)
+(45.2)
+(6.3)
+(87.2)
+Additions
+191.6
+255.6
+948.2
+2,633.3
+1.5
+Disposals
+(760.8)
+(52.3)
+(8.8)
+(398.6)
+(6.8)
+(1,227.3)
+As at March 31, 2021
+1,998.3
+1,396.9
+(4.0)
+(940.6)
+As at March 31, 2022
+602.2
+8.3
+1,120.7
+Disposals
+(10.2)
+(0.9)
+(197.1)
+(6.7)
+(214.9)
+473.4
+As at March 31, 2021
+912.8
+17,225.4
+78.5
+7.1
+2,378.7
+Consolidation adjustments
+10.8
+4.9
+0.1
+24.8
+385.3
+36.8
+Depreciation expense
+(20.4)
+2,173.1
+2,642.0
+3.0
+2,932.5
+24.1
+7,774.7
+Accumulated depreciation and impairment
+As at March 31, 2020
+357.8
+439.4
+0.9
+2.2
+680.0
+13.0
+1,493.3
+Consolidation adjustments
+(9.3)
+10.2
+(2.2)
+(11.6)
+(7.5)
+12.8
+(41.6)
+1,073.5
+6,856.8
+19,774.3
+63,015.3
+2,861.1
+748.3
+1,609.0
+88,008.0
+Consolidation adjustments
+199.9
+771.5
+61.1
+1.1
+7.6
+1,041.2
+Taken over on acquisition
+61.3
+666.8
+17.8
+745.9
+Depreciation expense
+2,052.9
+8,191.3
+As at March 31, 2021
+(1,356.3)
+(96.9)
+(0.4)
+Consolidation adjustments
+2,743.5
+0.4
+705.9
+1,384.8
+77,674.6
+339.0
+(37.4)
+10.1
+(45.3)
+264.7
+344.9
+2,501.3
+8,110.1
+281.5
+129.2
+322.7
+11,344.8
+Disposals
+(30.9)
+(1,048.4)
+(126.5)
+Depreciation expense
+Disposals
+(53.2)
+(1,290.6) (1,786.9)
+20,797.8 70,858.0
+2,128.9
+As at March 31, 2022
+Carrying amount
+38.2
+6.6
+9.1
+2,064.9
+2,609.1
+As at March 31, 2020
+Furniture
+and fixtures
+At cost or deemed cost
+Total
+Office
+equipment
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 3A (II) RIGHT-OF-USE ASSETS
+* in Million
+Leasehold
+land
+Buildings
+Plant and
+equipment
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Vehicles
+97,789.4
+235
+1,093.2
+1,125.8
+398.0
+332.5
+1,091.2
+1,347.6
+4,425.5 37,316.9 53,273.7
+6,448.1 37,038.3 52,770.9
+98,872.3
+As at March 31, 2021
+As at March 31, 2022
+1,931.1
+750.0
+3,105.5
+(3,320.5)
+10,967.8
+335.7
+(21.2)
+123.2
+(122.6)
+(99.2)
+Scaling up Specialty. Leading with Care.
+97,442.4
+From banks (unsecured)
+From others (secured)
+From department of biotechnology (secured)
+Term loans
+Refer consolidated statement of changes in equity for detailed movement in above balances.
+Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gain
+or loss arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges.
+The cumulative gain or loss arising on the changes of the fair value of the designated portion of the hedging instruments
+that are recognised and accumulated under the cash flow hedges reserve will be reclassified to profit or loss only when the
+hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged item.
+Nature and purpose of each reserve
+(769.6)
+2,392.6
+47,935.1
+184.7
+477,712.9
+395.0
+3,891.1
+39,924.5
+523.4
+462,228.5
+Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if
+any, is treated as capital reserve.
+Securities premium - The amount received in excess of face value of the equity shares is recognised in securities premium.
+In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal
+value of share is accounted as securities premium. It is utilised in accordance with the provisions of the Companies
+Act, 2013.
+NOTE : 21 BORROWINGS (NON-CURRENT)
+Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.
+Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investments in
+equity instruments in other comprehensive income. This amount will be reclassified to retained earnings on derecognition
+of equity instrument.
+Foreign currency translation reserve - Exchange differences relating to the translation of the results and net assets
+of the Group's foreign operations from their functional currencies to the Group's presentation currency (i.e. *) are
+recognised directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange
+difference in the foreign currency translation reserve are reclassified to consolidated profit or loss on the disposal of the
+foreign operation.
+Scaling up Specialty. Leading with Care.
+243
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Capital redemption reserve - The Group has recognised capital redemption reserve on buyback of equity shares from its
+retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.
+Legal reserve - The reserve has been created by an overseas subsidiaries in compliance with requirements of local laws.
+General reserve: The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies
+Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
+Debt instrument through OCI - This represents the cumulative gain and loss arising on fair valuation of debt instruments
+measured through other comprehensive income. This amount will be reclassified statement of profit and loss account on
+derecognition of debt instrument.
+Employee benefits
+NOTE : 22 OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+* in Million
+As at
+March 31, 2021
+2,299.2
+6,468.8
+54.1
+24.2
+2,299.2
+6,547.1
+As at
+March 31, 2022
+As at
+March 31, 2022
+14.2
+160.0
+178.2
+1.2
+161.2
+3.4
+195.8
+As at
+March 31, 2022
+* in Million
+As at
+March 31, 2021
+244
+Also refer note 67 for borrowings (current).
+Current maturities of long-term debt (Refer note 66)
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Others
+NOTE : 23 PROVISIONS (NON-CURRENT)
+Effective portion of cash flow hedges
+Others (Refer note 60)
+NOTE : 24 OTHER NON-CURRENT LIABILITIES
+Deferred revenue (Refer note 53)
+Others
+NOTE : 25 BORROWINGS (CURRENT)
+Loans repayable on demand
+From banks (unsecured)
+Other loans
+From banks (unsecured)
+Commercial paper (unsecured)
+Also refer note 66 for borrowings (non-current).
+Foreign currency translation reserve
+Reserves and surplus
+Debt instrument through other comprehensive income
+2,399.3
+2,399,334,970
+2,399.3
+2,399,334,970
+2,399.3
+2,399.3
+2,399,334,970
+2,399,334,970
+Equity shares of ₹ 1 each (Refer note 41)
+Issued, subscribed and fully paid up
+6,000.0
+5,990.0
+10.0
+100,000
+10.0
+6,000.0
+242
+100,000
+5,990.0
+5,990,000,000
+Cumulative preference shares of * 100 each
+Equity shares of ₹ 1 each
+Authorised
+* in Million
+Number of shares
+in Million
+As at March 31, 2021
+As at March 31, 2022
+Number of shares
+508.2
+18,761.5
+540.9
+18,855.5
+10,173.4
+5,990,000,000
+Corporate Overview
+Statutory Reports
+Financial Statements
+7.5
+285.5
+35,621.0
+365,980.9
+7.5
+285.5
+35,621.0
+376,456.5
+43.8
+3,681.7
+11,874.1
+3,681.7
+11,874.1
+43.8
+* in Million
+As at
+March 31, 2021
+March 31, 2022
+As at
+Items of other comprehensive income (OCI)
+B)
+Retained earnings
+General reserve
+Legal reserve
+Capital redemption reserve
+Amalgamation reserve
+Securities premium
+Capital reserve
+A)
+NOTE : 20 OTHER EQUITY
+FOR THE YEAR ENDED MARCH 31, 2022
+3,647.8
+722.4
+698.7
+(722.4)
+(698.7)
+11,664.6
+3,433.5
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Equity instrument through other comprehensive income
+257.2
+3,690.7
+3,385.5
+As at
+March 31, 2021
+Net gain on sale of financial assets measured at fair value through profit or loss
+2,153.3
+2,111.3
+2,560.4
+486.1
+138.2
+Net gain on sale of financial assets measured at fair value through other comprehensive income
+Net gain/(loss) arising on financial assets measured at fair value through profit or loss
+Net gain on disposal of property, plant and equipment and other intangible assets
+Sundry balances written back, net
+7.7
+Scaling up Specialty. Leading with Care.
+Revenue from contracts with customers (Refer note 53)
+Other operating revenues
+NOTE: 30 REVENUE FROM OPERATIONS
+1,790.8
+1,790.8
+As at
+March 31, 2021
+1,781.4
+1,781.4
+Dividend income on investments
+March 31, 2022
+Provision for income tax [Net of advance income tax]
+* in Million
+45,826.5
+91,478.2
+41,237.8
+87,204.9
+4,588.7
+As at
+March 31, 2021
+4,273.3
+As at
+March 31, 2022
+* in Million
+50.3
+7,279.9
+1,671.0
+As at
+5,086.7
+471.9
+5,533.7
+4,339.5
+Year ended
+March 31, 2022
+384,264.2
+2,280.7
+386,544.9
+* in Million
+Year ended
+March 31, 2021
+3,140.3
+332,330.8
+2,650.6
+334,981.4
+245
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+49.3
+389.8
+NOTE: 31 OTHER INCOME
+* in Million
+Year ended
+March 31, 2021
+Interest income on:
+Bank deposits at amortised cost
+290.9
+317.2
+Loans at amortised cost
+Investments in debt instruments at fair value through other comprehensive income
+Other financial assets carried at amortised cost
+6.5
+817.6
+65.2
+1,289.8
+79.2
+Others [includes interest on income tax refund of 4,055.8 Million
+(March 31, 2021 : 285.8 Million)]
+Year ended
+March 31, 2022
+5,005.7
+285.8
+1,644.3
+98.1
+7,033.9
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2022
+March 31, 2022
+As at
+NOTE : 26 OTHER FINANCIAL LIABILITIES (CURRENT)
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+28,687.8
+7,007.7
+4,238.8
+2,322.5
+* in Million
+As at
+March 31, 2021
+14,006.4
+3,333.8
+4,685.2
+As at
+March 31, 2021
+* in Million
+March 31, 2022
+As at
+7,185.5
+333.8
+7,519.3
+As at
+March 31, 2021
+* in Million
+6,187.5
+157.0
+6,344.5
+As at
+March 31, 2022
+385.0
+3,271.2
+2,886.2
+7,108.8
+Interest accrued
+29.0
+47.1
+NOTE : 29 CURRENT TAX LIABILITIES (NET)
+Others (Refer note 60 and 61)
+Employee benefits
+NOTE : 28 PROVISIONS (CURRENT)
+Others
+Deferred revenue (Refer note 53)
+Advance from customers (Refer note 53)
+Statutory remittances
+NOTE : 27 OTHER LIABILITIES (CURRENT)
+* Include claims, recall charges, contractual and expected milestone obligations, trade and other commitments (also refer note 61).
+37,118.0
+25,965.7
+7,336.1
+10,530.4
+1,720.7
+18,832.7
+29.2
+115.0
+272.0
+37.8
+6,000.3
+155.9
+141.6
+Others*
+Payables to employee
+Derivatives not designated as hedges
+Payables on purchase of property, plant and equipment and Other Intangible assets
+Security deposits
+Derivatives designated as hedges
+83.5
+100.9
+Unpaid dividends
+* in Million
+2,787.0
+5.5
+in Million
+As at
+March 31, 2021
+1,072.5
+1,223.8
+89,968.1
+7,406.8
+8,382.8
+81.6
+173.5
+7,325.2
+8,209.3
+29,756.3
+30,648.1
+18,292.9
+Goods-in-transit
+Stock-in-trade
+89,970.2
+Finished goods
+Goods in transit
+Raw materials and packing materials
+Lower of cost and net realisable value
+NOTE: 11 INVENTORIES
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+239
+Scaling up Specialty. Leading with Care.
+5,367.4
+2,888.4
+1,745.1
+1,958.2
+Work-in-progress
+44.7
+Stores and spares
+(ii) The cost of inventories recognised as an expense is disclosed in notes 32, 33 and 36 and as purchases of stock-in-trade in the consolidated
+statement of profit and loss.
+Aggregate amount of unquoted investments before impairment
+30,990.6
+40,318.0
+Aggregate amount of quoted investments at market value
+30,990.6
+40,318.0
+Aggregate book value (carrying value) of quoted investments
+31,300.6
+76,339.4
+15,055.0
+310.0
+12,748.1
+36,021.4
+(i) Inventory write downs are accounted, considering the nature of inventory, estimated shelf life, planned product discontinuances, price
+changes, ageing of inventory and introduction of competitive new products as well as provisioning policy of the company. Write downs of
+inventories amounted to 21,294.2 Million (March 31, 2021: 20,106.6 Million). The changes in write downs are recognised as an expense in
+the consolidated statement of profit and loss.
+168.7
+147.2
+142,393
+15,555.8
+63.9
+61,809
+26,820.4
+Bonds (various small denomination investments)
+National Highways Authority of India - 8.2% Bonds of
+* 1,000 each fully paid of maturing on January 25, 2022
+Power Finance Corporation Ltd (Series I) - 8.2% Bonds of
+* 1,000 each fully paid maturing on February 01, 2022
+Indian Railway Finance Corporation Ltd - 8/8.15% Bonds of
+* 1,000 each fully paid maturing on February 23, 2022
+Mutual funds * - Unquoted - At fair value through Profit or Loss
+Others - Quoted - At fair value through other comprehensive
+income (small denomination U.S Treasuries, certificate of deposits
+and commercial papers)
+749.5
+* in Million
+As at March 31, 2021
+Quantity
+* in Million
+As at March 31, 2022
+Quantity
+Equity instruments - Quoted - At fair value through Profit or Loss
+Bonds/debentures - Quoted - At fair value through other
+comprehensive income
+NOTE : 12 INVESTMENTS (CURRENT)
+163,131
+36,021.4
+21.7
+908.5
+2.9
+2.4
+* in Million
+As at
+March 31, 2021
+March 31, 2022
+As at
+* Includes amount paid under protest
+Balances with government authorities*
+Prepaid expenses
+Capital advances
+NOTE : 10 OTHER ASSETS [ NON-CURRENT]
+* Includes amount paid under protest
+Advance income tax (net of provisions)*
+NOTE: 9 INCOME TAX ASSET (NET) [NON-CURRENT]
+4.7
+Others
+Derivatives not designated as hedges
+Security deposits - unsecured, considered good
+NOTE : 8 OTHER FINANCIAL ASSETS (NON-CURRENT)
+Unsecured, considered good
+Secured, considered good
+Loans to employees
+NOTE: 7 LOANS (NON-CURRENT)
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+Unbilled revenue (Refer note 53)
+3,577.6
+4.2
+7.1
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2022
+34,327.8
+34,327.8
+As at
+March 31, 2021
+25,115.3
+25,115.3
+As at
+March 31, 2022
+in Million
+957.8
+1,259.0
+434.0
+305.5
+7.1
+193.7
+650.3
+625.8
+As at
+March 31, 2021
+March 31, 2022
+As at
+* in Million
+20,578.0
+33,441.7
+29,135.4
+32,862.7
+579.0
+717.9
+28,417.5
+260.0
+2.0
+310.0
+Aggregate amount of impairment in value of investments
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+As at
+*
+Less: Allowance for doubtful others
+Unbilled Revenue (Refer note 53)
+Others
+Refund due from government authorities
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Security deposits (unsecured, considered good)
+Interest accrued on investments/balances with banks
+NOTE : 17 OTHER FINANCIAL ASSETS (CURRENT)
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+March 31, 2022
+241
+* Others: Loans given to various parties at prevailing market interest rate.
+560.1
+1,699.7
+194.4
+222.7
+(15.3)
+(15.3)
+15.3
+15.3
+Less: Allowance for credit impaired
+Loans to employees/others - credit impaired
+0.7
+193.7
+0.7
+222.0
+Scaling up Specialty. Leading with Care.
+365.7
+* in Million
+As at
+March 31, 2021
+63.4
+As at
+March 31, 2022
+647.5
+2,862.2
+NOTE: 19 EQUITY SHARE CAPITAL
+* Includes balances of goods and services tax.
+Balances with government authorities*
+Others
+Less: Allowance for doubtful
+Considered doubtful
+Considered good
+Advances for supply of goods and services
+Prepaid expenses
+Export incentives receivable
+NOTE : 18 OTHER ASSETS (CURRENT)
+* The Group is carrying an allowance of 500.0 Million (March 31, 2021 : 500.0 Million) against other receivables (Others) based on assessment
+regarding its future recoverability.
+8,759.3
+104.8
+7,024.7
+(500.0)
+2,186.9
+2,814.7
+364.9
+188.6
+5,657.7
+3,256.9
+118.8
+621.4
+724.0
+306.0
+143.6
+232.3
+(500.0)
+379.0
+1,098.0
+Unsecured, considered good
+Secured, considered good
+* in Million
+As at
+March 31, 2021
+105,928.9
+March 31, 2022
+As at
+Loans to related party
+NOTE: 16 LOANS (CURRENT)
+Balances held as margin money or security against guarantees and other commitments
+Unpaid dividend accounts
+Earmarked balances with banks
+Deposit accounts
+NOTE: 15 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 14 ABOVE
+Cash on hand
+Cheques, drafts on hand
+90,614.0
+In deposit accounts with original maturity less than 3 months
+Balance with banks
+NOTE: 14 CASH AND CASH EQUIVALENTS
+Less: Allowance for credit impaired
+Credit impaired
+Unsecured, considered good
+NOTE: 13 TRADE RECEIVABLES
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+240
+In current accounts
+3,685.6
+2,410.4
+109,614.5
+*
+Loans to employees/others
+Unsecured, considered good (Refer note 68)
+Secured, considered good (Refer note 68)
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2022
+37.2
+1,724.8
+5,251.0
+86.7
+104.2
+20.8
+1,600.9
+As at
+March 31, 2021
+As at
+March 31, 2022
+5,126.0
+* in Million
+14.1
+62,730.3
+290.8
+28,097.7
+34,327.7
+45,082.5
+140.8
+15.2
+21,487.4
+23,439.1
+As at
+March 31, 2021
+* in Million
+As at
+March 31, 2022
+90,614.0
+105,928.9
+(2,410.4)
+(3,685.6)
+93,024.4
+1,645.1
+(3,619.5)
+in Million
+As at
+March 31, 2021
+485.6
+48.6
+13.8
+41.7
+21,028.2
+405.9
+422.1
+21,325.1
+42.3
+8,554.4
+32.6
+32.9
+33.8
+56.6
+24.3
+25.0
+6,882.2
+550.9
+90.3
+21,234.8
+100.00%
+India
+Green Eco Development Centre Limited
+1
+March 31, 2021
+March 31, 2022
+56.1
+Country of Incorporation
+Sun Pharmaceutical Industries Limited
+Parent Company
+for the year ended
+Proportion of ownership interest
+NOTE: 38 a) List of entities included in the Consolidated Financial Statements is as under:
+20,972.1
+Direct Subsidiaries
+539.0
+62.7
+84.1
+Miscellaneous expenses
+Professional, legal and consultancy
+Communication
+Travelling and conveyance
+Printing and stationery
+Repairs and maintenance
+Less:
+Insurance
+Rates and taxes
+Power and fuel
+Consumption of materials, stores and spare parts
+Staff welfare expenses
+Contribution to provident and other funds
+Salaries, wages and bonus
+Rent
+Miscellaneous income
+Receipts from research activities
+Year ended
+March 31, 2022
+6,551.5
+15.4
+32.2
+823.7
+1,093.4
+315.1
+352.6
+2,848.9
+4,449.4
+255.3
+226.0
+569.9
+578.1
+6,535.3
+March 31, 2021
+* in Million
+Year ended
+100.00%
+NOTE: 37 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE CONSOLIDATED STATEMENT OF
+PROFIT AND LOSS
+2
+Bangladesh
+100.00%
+100.00%
+India
+Skisen Labs Private Limited
+12
+100.00%
+Sun Pharma Holdings
+100.00%
+Realstone Multitrade Private Limited
+11
+100.00%
+100.00%
+India
+Neetnav Real Estate Private Limited
+India
+10
+Mauritius
+100.00%
+As at
+March 31, 2022
+2,197.6
+248
+100.00%
+100.00%
+Netherlands
+100.00%
+Sun Pharma (Netherlands) B.V.
+Trading Company Private Limited)
+100.00%
+100.00%
+India
+Softdeal Pharmaceutical Private Limited (Formerly known as Softdeal
+14
+15
+100.00%
+100.00%
+India
+Sun Pharma Japan Ltd.
+567
+(Refer note g)
+100.00%
+Mexico
+SPIL De Mexico S.A. DE C.V.
+Japan
+4
+75.00%
+Mexico
+Sun Pharma De Mexico S.A. DE C.V.
+3
+72.50%
+72.50%
+75.00%
+100.00%
+100.00%
+OOO "Sun Pharmaceutical Industries" Limited
+Faststone Mercantile Company Private Limited
+9
+100.00%
+100.00%
+India
+Sun Pharma Laboratories Limited
+8
+100.00%
+100.00%
+Venezuela
+Sun Pharma De Venezuela, C.A.
+7
+100.00%
+100.00%
+Russia
+Sun Pharmaceutical (Bangladesh) Limited
+FOR THE YEAR ENDED MARCH 31, 2022
+13
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Staff welfare expenses
+Contribution to provident and other funds*
+Salaries, wages and bonus
+NOTE: 34 EMPLOYEE BENEFITS EXPENSE
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+* Includes gratuity expense of *515.1 Million (March 31, 2021: *480.0 Million)
+Consolidated Accounts
+Statutory Reports
+Corporate Overview
+246
+(6,382.2)
+209.4
+(55,456.0)
+(1,076.1)
+Financial Statements
+986.1
+(59,608.9)
+NOTE: 35 FINANCE COSTS
+for financial liabilities carried at amortised cost
+68,622.3
+73,008.3
+3,299.3
+3,357.6
+4,792.9
+5,206.0
+Interest expense:
+60,530.1
+Year ended
+March 31, 2021
+Year ended
+March 31, 2022
+* in Million
+NOTE: 36 OTHER EXPENSES
+Exchange differences regarded as an adjustment to borrowing costs
+others (includes interest on income tax and lease liability)
+64,444.7
+48,864.4
+* in Million
+Year ended
+March 31, 2021
+Year ended
+March 31, 2022
+55,456.0
+2,090.7
+500.5
+9,215.1
+Miscellaneous income
+86.6
+3,368.8
+97.8
+69.0
+472.4
+146.9
+Lease rental and hire charges
+Insurance claims
+122.8
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+161.2
+59.8
+170.1
+8,355.2
+NOTE: 32 COST OF MATERIALS CONSUMED
+Raw materials and packing materials
+Foreign currency translation difference
+Inventories at the end of the year
+Inventories taken over on acquisition
+Inventories at the beginning of the year
+NOTE: 33 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+(33,441.7)
+61,531.3
+208.0
+28,936.0
+65,829.0
+33,441.7
+65,898.9
+286.0
+(29,135.4)
+70,491.2
+Year ended
+March 31, 2021
+* in Million
+Year ended
+March 31, 2022
+Inventories at the end of the year
+Foreign currency translation difference
+Purchases during the year
+Inventories at the beginning of the year
+Year ended
+March 31, 2022
+* in Million
+Year ended
+March 31, 2021
+Settlement Income
+1,193.0
+217.9
+20,235.4
+18,031.3
+Professional, legal and consultancy
+43.1
+175.7
+Provision/write off/(reversal) for doubtful trade receivables/advances
+Donations
+983.8
+Communication
+6,223.7
+7,932.9
+2,401.9
+3,737.3
+532.6
+945.8
+606.1
+600.5
+Loss on sale/write off of property, plant and equipment and other intangible assets, net
+7,701.7
+94,781.1
+587.2
+686.3
+Scaling up Specialty. Leading with Care.
+247
+107,583.6
+7,174.1
+515.6
+Miscellaneous expenses
+Impairment of property, plant and equipment, goodwill, other intangible assets and Intangible asset
+under development
+273.2
+274.2
+Payment to auditors (net of input credit, wherever applicable)
+22.4
+138.1
+204.6
+5,284.4
+155.5
+2,033.0
+Travelling and conveyance
+Printing and stationery
+Repairs and maintenance
+Commission on sales
+Selling, promotion and distribution
+Insurance
+Rates and taxes
+Rent
+Power and fuel
+1,273.5
+Consumption of materials, stores and spare parts
+3.4
+* in Million
+1,414.3
+5,246.0
+Freight outward and handling charges
+Year ended
+March 31, 2022
+Conversion and other manufacturing charges
+2,360.2
+22,782.9
+30,862.9
+7,983.0
+2,617.0
+4,587.6
+5,958.4
+419.8
+1,954.4
+6,270.9
+Year ended
+March 31, 2021
+7,027.8
+5,416.1
+6,537.3
+5,578.1
+535.4
+Brazil
+45.69%
+(Refer note f)
+100.00%
+57.56%
+(Refer note f)
+(Refer note f)
+86
+Kayaku Co., Ltd.
+Japan
+Zenotech Farmaceutica Do Brasil Ltda
+(Refer note i)
+100.00%
+38.21%
+India
+Russia
+84
+85
+68.84%
+(Refer note f)
+United States of America
+Zenotech Inc
+100.00%
+United States of America
+Sun Pharmaceuticals Holdings USA, Inc.
+83
+100.00%
+100.00%
+100.00%
+100.00%
+55
+87
+Sun Pharma (Shanghai) Co.,Ltd
+India
+78.48%
+United States of America
+JSC Biosintez
+Alchemee, LLC
+93
+100.00%
+Japan
+Sun Pharma Japan Technical Operations Limited
+92
+(Refer note m)
+100.00%
+100.00%
+China
+Canada
+Sun Pharma Distributors Limited
+Aquinox Pharmaceuticals (Canada) Inc
+90
+99.99%
+99.99%
+Bangladesh
+Sun Pharmaceuticals (EZ) Limited
+89
+100.00%
+100.00%
+India
+Realstone Infra Limited
+88
+100.00%
+100.00%
+91
+82
+United Kingdom
+81
+75
+Ranbaxy Inc.
+74
+73
+100.00%
+100.00%
+United Kingdom
+Sun Pharma UK Limited (Formerly known as Ranbaxy (U.K.) Limited)
+72
+22
+100.00%
+100.00%
+Spain
+Sun Pharma Holdings UK Limited (Formerly known as Ranbaxy
+Holdings (U.K.) Limited)
+Sun Pharma Laboratorios, S.L.U. (Formerly known as Laboratorios
+Ranbaxy, S.L.U.)
+70.00%
+70.00%
+South Africa
+Sonke Pharmaceuticals Proprietary Limited
+70
+100.00%
+100.00%
+South Africa
+Ranbaxy Pharmaceuticals (Pty) Ltd
+69
+100.00%
+94
+100.00%
+71
+Ranbaxy (Thailand) Co., Ltd.
+100.00%
+100.00%
+(Refer note o)
+United States of America
+Insite Vision Incorporated
+80
+100.00%
+100.00%
+100.00%
+100.00%
+Morocco
+Ukraine
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+79
+Sun Pharmaceuticals Morocco LLC
+78
+67.50%
+67.50%
+United States of America
+Ranbaxy Signature LLC
+77
+100.00%
+100.00%
+United States of America
+Ohm Laboratories, Inc.
+76
+100.00%
+100.00%
+Thailand
+100.00%
+100.00%
+United States of America
+Sun Pharmaceutical Medicare Limited
+The Proactiv Company Holdings, Inc. (Formerly known as Galderma
+40.55%
+78.48%
+United States of America
+114 Intact Media LLC (Formerly known as Intact Skin Care LLC)
+19.88%
+19.22%
+United States of America
+113 Intact Pharmaceuticals LLC
+19.88%
+19.22%
+United States of America
+112 ALPS LLC
+19.88%
+19.22%
+United States of America
+19.22%
+19.88%
+United States of America
+19.99%
+19.99%
+United States of America
+19.99%
+19.99%
+United States of America
+19.88%
+19.22%
+United States of America
+40.55%
+India
+39.41%
+19.22%
+39.41%
+19.88%
+United States of America
+South Africa
+Scaling up Specialty. Leading with Care.
+Sun Pharma Global FZE is under dissolution.
+h
+With effect from June 07, 2021 SPIL De Mexico S.A. DE C.V. has been dissolved.
+g
+Books of accounts and other related records/documents of the overseas subsidiaries of the Zenotech Laboratories
+Limited were missing and due to non-availability of those records/information, Zenotech Laboratories Limited is
+unable to prepare consolidated accounts.
+Foundation for Disease Elimination and Control of India (FDEC), a wholly owned subsidiary incorporated in India on
+September 21, 2016 by the parent company as part of its Corporate Social Responsibility (CSR) initiative. FDEC has
+entered into an MOU with Indian Council of Medical Research (ICMR) and Madhya Pradesh State Government to
+undertake the Mandla Malaria Elimination Demonstration Project with a goal to eliminate Malaria in the state. FDEC
+is a Section 8 company not considered for consolidation since it can apply its income for charitable purposes only and
+can raise funds/contribution independently.
+f
+e
+In respect of entitiy at Sr. No. 92, 93, 94, 95, 96, 97, 116 and 117 has been incorporated/ acquired during the year
+ended March 31, 2022.
+d
+In respect of entities at Sr. Nos. 3, 4, 6, 36, 67, 79, 80, 82, 90, 98, 99, 102, 103 and from 107 to 117 the reporting date
+is different from the reporting date of the Parent Company.
+115 Intact Solutions LLC
+C
+85.18%
+85.66%
+78.48%
+Beneficial ownership
+Following are the details of the Group's holding in Taro:
+Voting power
+b
+19.22%
+United States of America
+19.22%
+United States of America
+117 Intact PUR-Needle LLC
+116 Intact Closed Transfer Connectors LLC
+19.88%
+19.22%
+77.78%
+India
+36.90%
+36.90%
+78.48%
+78.48%
+March 31, 2022
+for the year ended
+Proportion of ownership interest
+Germany
+Japan
+Canada
+Country of Incorporation
+Name of Associates
+Artes Biotechnology GmbH
+98
+Name of Joint Venture Entity
+The Proactiv Company Corporation
+March 31, 2021
+97
+96
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+250
+78.48%
+Japan
+Proactiv YK
+95
+Holdings, Inc.)
+The Proactiv Company KK
+45.00%
+45.00%
+99
+India
+12.50%
+12.50%
+Australia
+18.71%
+20.96%
+Israel
+40.61%
+40.61%
+India
+28.76%
+28.76%
+India
+19.99%
+19.99%
+United States of America
+111 Medinstill Development LLC
+110 Dr. Py Institute LLC
+109 HRE III LLC
+108 HRE II LLC
+107 HRE LLC
+106 Vento Power Generation LLP
+104 Composite Power Generation LLP
+105 Vintage Power Generation LLP
+Name of Subsidiary of Associates
+103 WRS Bioproducts Pty Ltd.
+102 Tarsier Pharma Ltd ( Formerly known as Tarsius Pharma Ltd.)
+101 Trumpcard Advisors and Finvest LLP
+100 Generic Solar Power LLP
+Medinstill LLC
+United States of America
+Ranbaxy South Africa (Pty) Ltd
+77.78%
+100.00%
+Caraco Pharmaceuticals Private Limited
+35
+33333
+South Korea
+34 Sun Pharmaceuticals Korea Ltd.
+100.00%
+100.00%
+(Refer note h)
+100.00%
+100.00%
+South Africa
+Philippines
+Sun Pharma Philippines, Inc.
+33
+32 Sun Pharmaceuticals SA (Pty) Ltd
+100.00%
+36
+United Arab Emirates
+France
+Sun Pharma Global FZE
+30 Sun Pharmaceuticals France
+100.00%
+100.00%
+Germany
+100.00%
+100.00%
+Netherlands
+100.00%
+100.00%
+Israel
+100.00%
+(Refer note I)
+100.00%
+Sun Pharmaceutical Peru S.A.C.
+100.00%
+Taro Pharmaceuticals Europe B.V.
+42
+West Indies
+77.78%
+78.48%
+Cayman Islands, British
+41 Taro Pharmaceuticals North America, Inc.
+77.78%
+78.48%
+United States of America
+Taro Pharmaceuticals U.S.A., Inc.
+40
+78.48%
+India
+Peru
+77.78%
+Israel (Refer note b)
+Canada
+Taro Pharmaceuticals Inc.
+39
+Taro Pharmaceutical Industries Ltd. (Taro)
+38
+100.00%
+100.00%
+United Arab Emirates
+Sun Laboratories FZE
+37
+99.33%
+100.00%
+(Refer note k)
+100.00%
+78.48%
+Netherlands
+Australia
+99.99%
+100.00%
+100.00%
+100.00%
+Brazil
+France
+Sun Pharma France (Formerly Known as Ranbaxy Pharmacie Generiques)
+19
+Sun Farmaceutica do Brasil Ltda.
+18
+Indirect Subsidiaries
+March 31, 2021
+100.00%
+(Refer note e)
+March 31, 2022
+Proportion of ownership interest
+for the year ended
+57.56%
+(Refer note f)
+100.00%
+(Refer note f)
+India
+100.00%
+(Refer note e)
+Zenotech Laboratories Limited
+17
+India
+16 Foundation for Disease Elimination and Control of India
+Country of Incorporation
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+68.84%
+99.99%
+21
+20 Sun Pharmaceutical Industries, Inc.
+Hungary
+100.00%
+100.00%
+United States of America
+Sun Pharmaceuticals Germany GmbH
+Sun Pharmaceutical Industries (Europe) B.V.
+28
+Aditya Acquisition Company Ltd.
+Sun Pharmaceutical Industries (Australia) Pty Limited
+26
+Alkaloida Chemical Company Zrt.
+25
+The Taro Development Corporation
+222222222 5
+24
+100.00%
+United States of America
+86.16%
+86.16%
+95.67%
+95.67%
+Malaysia
+Nigeria
+100.00%
+100.00%
+United States of America
+Chattem Chemicals Inc.
+Ranbaxy Nigeria Limited
+Ranbaxy (Malaysia) SDN. BHD.
+100.00%
+78.48%
+77.78%
+43
+Germany
+Basics GmbH
+61
+(Refer note n)
+France
+Office Pharmaceutique Industriel Et Hospitalier
+60
+100.00%
+100.00%
+Egypt
+Rexcel Egypt LLC
+59
+100.00%
+100.00%
+100.00%
+Sun Pharma Egypt LLC
+58
+100.00%
+100.00%
+Canada
+Sun Pharma Canada Inc.
+57
+100.00%
+100.00%
+Brazil
+Ranbaxy Farmaceutica Ltda.
+56
+March 31, 2021
+Egypt
+Proportion of ownership interest
+for the year ended
+62
+Ireland
+100.00%
+Russia
+AO Ranbaxy
+67
+96.81%
+96.81%
+Romania
+Terapia SA
+66
+100.00%
+100.00%
+Poland
+Ranbaxy (Poland) SP. Z O.O.
+Ranbaxy Ireland Limited
+65
+100.00%
+Peru
+Sun Pharmaceutical Industries S.A.C.
+64
+100.00%
+100.00%
+Italy
+Sun Pharma Italia srl (Formerly known as Ranbaxy Italia S.P.A.)
+63
+(Refer note j)
+(Refer note j)
+100.00%
+100.00%
+100.00%
+March 31, 2022
+Country of Incorporation
+FOR THE YEAR ENDED MARCH 31, 2022
+49
+(Refer note o)
+United States of America
+Mutual Pharmaceutical Company Inc.
+48
+100.00%
+77.78%
+78.48%
+(Refer note p)
+100.00%
+United States of America
+Dusa Pharmaceuticals, Inc.
+47
+United States of America
+Taro Pharmaceutical Laboratories Inc.
+2 Independence Way LLC
+46
+78.48%
+United States of America
+One Commerce Drive LLC
+45
+77.78%
+78.48%
+United States of America
+3 Skyline LLC
+44
+77.78%
+78.48%
+Israel
+Taro International Ltd.
+77.78%
+United States of America
+100.00%
+100.00%
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+249
+Scaling up Specialty. Leading with Care.
+100.00%
+100.00%
+100.00%
+100.00%
+United States of America
+Australia
+Sun Pharma ANZ Pty Ltd
+55
+PI Real Estate Ventures, LLC
+54
+(Refer note o)
+United States of America
+Pharmalucence, Inc.
+53
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+India
+Switzerland
+Kenya
+Sun Pharma East Africa Limited
+52
+Sun Pharma Switzerland Ltd.
+51
+Universal Enterprises Private Limited
+50
+68
+Corporate Overview
+251
+6,000.3
+Derivatives not designated as hedges
+Other financial assets
+Unbilled revenue
+Derivatives designated as hedges
+Refund due from government authorities
+Interest accrued on investments / balances with banks
+Bank balances other than cash and cash equivalents
+Cash and cash equivalents
+Security deposits
+Trade receivables
+Loans to employees/others
+Loans to related parties
+Venture funds - unquoted
+Others quoted
+Mutual funds - unquoted
+Bonds/debentures - quoted
+Equity instruments - unquoted
+Equity instruments - quoted
+Investments
+Financial assets
+NOTE: 43 CATEGORIES OF FINANCIAL INSTRUMENTS
+Capital
+Revenue, net (excluding depreciation) (Refer note 37)
+Total
+NOTE: 42 RESEARCH AND DEVELOPMENT EXPENDITURE
+Financial liabilities
+Lease liabilities
+income
+Fair value
+through other
+comprehensive
+As at March 31, 2022
+21,443.3
+471.2
+20,972.1
+March 31, 2021
+* in Million
+Year ended
+22,103.7
+21,234.8
+868.9
+Year ended
+March 31, 2022
+Fair value through
+profit or loss
+Scaling up Specialty. Leading with Care.
+Derivatives not designated as hedges
+Total
+Other financial liabilities
+Payables to employee
+Derivatives designated as hedges
+assets
+Payable on purchase of property, plant and equipment and Other Intangible
+Security deposits
+Unpaid dividends
+Interest accrued
+Trade payables
+Borrowings
+* in Million
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Financial Statements
+Kumud S. Shanghvi
+are Trustees)
+(Kumud S. Shanghvi and Dilip S. Shanghvi
+0.1
+1,276,774
+0.1
+1,276,774
+Shanghvi Family & Friends Benefit Trust
+0.1
+2,822,427
+0.1
+2,822,427
+Vidhi D. Shanghvi
+0.1
+2,877,280
+0.1
+2,877,280
+Aalok D. Shanghvi
+0.4
+8,840,280
+0.4
+8,840,280
+Vibha D. Shanghvi
+199,465
+Consolidated Accounts
+0.0
+0.0
+Statutory Reports
+256
+0.4
+10,400,850
+0.4
+10,400,850
+Unimed Investments Limited
+Private Limited
+0.0
+14,362
+0.0
+14,362
+Gujarat Sun Pharmaceutical Industries
+0.0
+15,479
+0.0
+15,479
+Sanghvi Properties Private Limited
+0.0
+20,865
+0.0
+20,865
+Flamboyawer Finance Private Limited
+199,465
+Amortised cost
+1,487.3
+212.0
+6,886.3
+9,072.4
+19,293.9
+310.0
+54,333.9
+400.0
+8,185.5
+1,718.3
+204.9
+income
+Fair value
+through other
+comprehensive
+Fair value through
+profit or loss
+As at March 31, 2021
+* in Million
+258
+Derivatives not designated as hedges
+Total
+Other financial liabilities
+Payables to employee
+Derivatives designated as hedges
+Payable on purchase of property, plant and equipment and Other Intangible
+assets
+Security deposits
+Unpaid dividends
+Interest accrued
+Trade payables
+Lease liabilities
+Amortised cost
+Borrowings
+365.7
+793.9
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+115,399.6
+293.2
+43.4
+43.4
+7,336.1
+25,969.1
+293.2
+3,385.5
+155.9
+83.5
+47.1
+39,736.6
+3,450.9
+35,234.9
+164,508.6
+82,937.3
+120.8
+11,426.4
+670.4
+1,686.9
+724.0
+5,657.7
+63.4
+1,724.8
+62,730.3
+201.5
+90,614.0
+Financial liabilities
+Total
+Derivatives not designated as hedges
+10,530.4
+1,721.9
+432.0
+141.6
+100.9
+29.0
+44,793.4
+3,596.1
+9,306.9
+165,320.0
+81,966.2
+626.9
+44,791.8
+382.3
+2,748.7
+306.0
+104.8
+3,256.9
+5,251.0
+45,082.5
+858.1
+229.8
+105,928.9
+1,477.0
+6,444.2
+14,790.8
+36,021.4
+402.5
+59,580.6
+37.8
+37.8
+432.0
+76,220.5
+Other financial assets
+Unbilled revenue
+Derivatives designated as hedges
+Refund due from government authorities
+Interest accrued on investments / balances with banks
+Bank balances other than cash and cash equivalents
+Cash and cash equivalents
+Security deposits
+Trade receivables
+Loans to employees/others
+Loans to related parties
+(0.2)
+Venture funds - unquoted
+Others quoted
+Mutual funds - unquoted
+Bonds/debentures - quoted
+Equity instruments - unquoted
+Equity instruments - quoted
+Investments
+Financial assets
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+257
+-
+1.2
+FOR THE YEAR ENDED MARCH 31, 2022
+1.2
+On July 23, 2020, Taro Pharmaceuticals U.S.A., Inc. ("Taro U.S.A.") came to a global resolution with the DOJ, Antitrust
+Division and Civil Division in connection with DOJ's multi-year investigation into the U.S. generic pharmaceutical
+industry. Under a Deferred Prosecution Agreement ("Agreement") reached with the Antitrust Division, the DOJ filed
+an Information relating to conduct allegedly occurring between 2013 and 2015. If Taro U.S.A. adheres to the terms
+of the Agreement, including payment of USD 205.7 Million (equivalent to ₹ 15,601.8 Million), the DOJ will dismiss
+the Information at the end of a three-year period. Taro U.S.A. has paid this amount in full to the Antitrust Division.
+Taro U.S.A. has also reached an agreement with the DOJ Civil Division on September 30, 2021, pursuant to which
+Taro U.S.A. agreed to pay USD 213.3 Million (equivalent to ₹ 16,179.6 Million) to resolve all claims related to federal
+healthcare programs. Taro U.S.A. has paid this amount in full to the Civil Division.
+On April 30, 2018, SPIINC received a Civil Investigative Demand ("CID") from the DOJ, Civil Division, in connection
+with a False Claims Act investigation, seeking information relating to certain generic pharmaceutical products and
+pricing, potential communications with competitors, and certain other related matters. In response to the CID, SPIINC
+provided certain materials to the Civil Division in 2018. The Civil Division has not asked for any additional information
+from SPIINC, or communicated with SPIINC, about the CID since that time.
+On April 01, 2016, Sun Pharmaceutical Industries, Inc. ("SPIINC"), a subsidiary of the parent company, received a grand
+jury subpoena from the U.S. Department of Justice ("DOJ"), Antitrust Division, seeking documents relating to certain
+generic pharmaceutical products and pricing, potential communications with competitors, and certain other related
+matters. On or before November 2017, SPIINC provided documents and information related to three pharmaceutical
+products. The Antitrust Division has not asked for any additional information from SPIINC, or communicated with
+SPIINC, about the subpoena since that time.
+Antitrust - Gx Drug Price Fixing Litigation:
+discovery process; the entitlement of the parties to an action to appeal a decision; the extent of the claims, including
+the size of any potential class, particularly when damages are not specified or are indeterminate; the possible need
+for further legal proceedings to establish the appropriate amount of damages, if any; the settlement posture of the
+other parties to the litigation, and any other factors that may have a material effect on the litigation. The Company
+makes its assessment of likely outcome based on the views of internal legal counsel and in consultation with external
+legal counsel representing the Company. The Company also believes that disclosure of the amount sought by plaintiffs
+would not be meaningful because historical evidence indicates that the amounts settled (if any) are significantly
+different than those claimed by plaintiffs. Some of the legal claims against the Company, if decided against the
+Company or settled by the Company, may result in significant impact on its results of operations.
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+SPIINC, Taro Pharmaceutical Industries Ltd. ("Taro Industries") and its subsidiaries, along with more than 70 other
+pharmaceutical companies and individuals, are named as defendants in lawsuits brought by several putative classes,
+state Attorneys Generals, municipalities, and individual company purchasers and payors, alleging violations of
+the antitrust and related laws in the U.S. and Canada. Additionally, SPIINC, Taro U.S.A., and more than 70 other
+pharmaceutical companies and individuals have been named as defendants in Writs of Summons issued in Pennsylvania
+state court; the Writs of Summons indicate an intent by the filing plaintiffs to file a complaint, but no complaints have
+yet been formally filed. Each of the cases that were filed in U.S. federal court have been transferred to the U.S. District
+Court for the Eastern District of Pennsylvania for coordinated pre-trial proceedings, and are now in discovery. In May
+2021, that Court designated certain complaints naming SPIINC and Taro U.S.A. as "bellwether" cases to begin the
+sequencing of proceedings. Subsequently, a settlement was reached with the Direct Purchaser class plaintiffs, subject
+to final Court approval, pursuant to which SPIINC will pay a maximum of $ 17.4 Million (equivalent to 1,309.7 Million)
+subject to a reduction of up to $ 2.1 Million (equivalent to 157.9 Million) depending on the volume of certain class
+members that may opt-out of the settlement, and Taro U.S.A. will pay a maximum of $ 67.6 Million (equivalent to
+* 5,084.0 Million) subject to a reduction of up to $ 8.0 Million (equivalent to 601.7 Million) depending on the volume
+of certain class members that may opt-out of the settlement. Further, during the year ended March 31, 2022 and
+March 31, 2021, Taro Industries made a provision of USD 60 Million and USD 140 Million (equivalent to * 4,425.0
+Million and 10,384.4 Million) for this ongoing multi-jurisdiction civil antitrust matters; however, the ultimate outcome
+of these matters cannot be predicted with certainty. These provisions have been disclosed as exceptional items in the
+consolidated financial statements.
+Financial Statements
+Corporate Overview
+The parent company and/or its subsidiaries are involved in various legal proceedings including product liability,
+contracts, employment claims, antitrust and other legal and regulatory matters relating to the conduct of its
+business. Some of the key matters are discussed below. Most of the legal proceedings involve complex issues, which
+are specific to the case and do not have precedents, and, hence, for a majority of these claims, it is not possible to
+make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of the
+proceedings. This is due to a number of factors, including: the stage of the proceedings and the overall length and the
+252
+V) Legal proceedings:
+Note: Includes interest till the date of demand, wherever applicable.
+90.2
+90.6
+IV) Other matters - state electricity board, Punjab Land Preservation Act related matters etc.
+Statutory Reports
+Scaling up Specialty. Leading with Care.
+253
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Product Liability - Ranitidine/Zantac MDL:
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+The parent company and certain of its subsidiaries are defendants in a number of putative class action lawsuits and
+individual actions brought by purchasers and payors in the U.S. alleging that the parent company and certain of its
+subsidiaries violated antitrust laws in connection with a 2008 patent settlement agreement with Pfizer concerning
+Atorvastatin. The cases have been transferred to the U.S. District Court for the District of New Jersey for coordinated
+proceedings. Discovery commenced in January 2020, but was stayed in March 2020 pending mediation. Pursuant
+to the mediator's order of June 03, 2021, briefing on certain issues was completed by March 2022, and argument on
+these issues will likely occur in subsequent months.
+Antitrust - Lipitor:
+Taro Industries has been named as a defendant in a putative opioids class action pending in Israel, in which the
+claimant alleges that Taro Industries did not provide sufficient disclosure regarding the risks associated with opioid use
+in alleged violation of the Israeli Consumer Protection Act. Taro Industries filed its defense to the application for class
+action approval on May 02, 2021, and a preliminary hearing to address the issue may be scheduled for late 2022.
+SPIINC is a defendant in the National Prescription Opiate Litigation that has been consolidated for pre-trial
+proceedings in the U.S. District Court for the Northern District of Ohio, as well as in state cases pending in Utah state
+court; SPIINC and the parent company are also named as defendants in two individual personal injury complaints
+filed in West Virginia state court in March 2022; separately, the parent company and Sun Pharma Canada Inc. are
+defendants in putative class actions pending in Canada. The U.S. and Canadian matters involve similar allegations, and
+were brought against various manufacturers and distributors of opioid products seeking damages for alleged harms
+related to opioid use. Currently, all matters against SPIINC in the National Prescription Opiate Litigation are stayed;
+SPIINC obtained an order in the Utah matters dismissing all claims except public nuisance and negligence claims; and
+the Canadian matters are in the early stages of pleading.
+Opioids:
+On June 22, 2020, a motion seeking documents before filing a shareholder derivative action was filed by a single
+shareholder against Taro Industries and Taro U.S.A. in the Haifa District Court related to alleged U.S. antitrust
+violations. On September 22, 2020, a subsequent motion seeking documents was filed by a single shareholder against
+Taro Industries related to alleged misreporting to U.S. Medicaid and three prior state settlements. Both motions were
+consolidated on February 16, 2021, and remain pending before the Haifa District Court. Taro Industries has filed a
+motion to stay proceedings pending resolution of the related U.S. litigation, and also a motion for service recognition
+in which the Company requested the court to determine that the service of the motion to Taro U.S.A. seeking
+documents before filing a shareholder derivative action was performed in accordance with Israeli Law requirements.
+Taro Industries Shareholders Litigation in Israel:
+Taro Pharmaceutical Industries Ltd. and two of its former officers are named as defendants in a putative shareholder
+class action litigation pending in the U.S. District Court for the Southern District of New York, which asserts claims
+under Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") against all defendants and claims
+under Section 20(a) of the Exchange Act against the individual defendants. The lawsuit generally alleges that the
+defendants made material misstatements and omissions in connection with an alleged conspiracy to fix drug prices.
+On September 24, 2018, the Court granted in part and denied in part the Taro Industries' motion to dismiss. The case
+is proceeding with limited discovery.
+Speakes v. Taro Pharmaceutical Industries Ltd.:
+254
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+3,488.2
+3,474.2
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit
+enjoyed by the Group
+III)
+With effect from January 25, 2022 Taro Pharmaceutical Laboratories Inc. was merged into Taro Pharmaceuticals
+U.S.A., Inc.
+With effect from April 01, 2020 Insite Vision Incorporated, Mutual Pharmaceutical Company Inc and Pharmalucence,
+Inc.has been merged with Sun Pharmaceutical Industries, Inc.
+28,830,352
+With effect from July 31, 2020 Aquinox Pharmaceuticals (Canada) Inc has been merged with Taro Pharmaceuticals Inc.
+q
+р
+0
+n
+m
+With effect from March 17, 2021 Sun Pharmaceuticals France has been dissolved.
+|
+With effect from January 05, 2021 Sun Pharmaceuticals Korea Ltd has been dissolved.
+k
+With effect from September 04, 2021 Ranbaxy Ireland Limited has been dissolved.
+j
+With effect from September 01, 2021 Kayaku Co. Ltd. has been ceased to be the subsidiary of the company.
+i
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Significant Accounting Policies and other Notes to these Consolidated Financial Statements are intended to serve
+as a means of informative disclosure and a guide for better understanding of the consolidated position of the
+Group. Recognising this purpose, the Group has disclosed only such policies and notes from the individual financial
+statements which fairly represent the needed disclosures. Lack of homogeneity and other similar considerations made
+it desirable to exclude some of them, which in the opinion of the management, could be better viewed when referred
+from the individual financial statements.
+In June 2020, the parent company and certain of its subsidiaries were named as defendants in a complaint filed in the
+Zantac/Ranitidine Multi-District Litigation ("MDL") consolidated in the U.S. District Court for the Southern District of
+Florida. The lawsuits name over 100 defendants, including brand manufacturers, generic manufacturers, repackagers,
+distributors, and retailers, involving allegations of injury caused by nitrosamine impurities. Discovery in the MDL is
+ongoing. On July 8, 2021, the District Court granted the generic Defendants' motion to dismiss, the effect of which
+was to dismiss the parent company and its affiliates with prejudice. That decision is up on appeal. In addition to the
+federal court proceedings, two of the parent company's affiliates also have been named as defendants in state court
+actions pending in Illinois, Pennsylvania, New York, and California. Finally, certain of the parent company's subsidiaries
+are named in three putative class actions pending in three Canadian provinces. The action pending in British Columbia
+is taking the lead and is in the class certification stage.
+NOTE: 39 CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
+* in Million
+As at
+March 31, 2021
+130.5
+130.5
+1,511.6
+1,789.6
+Goods and Service tax / Excise duty / service tax on account of valuation / cenvat credit
+ESIC contribution on account of applicability
+148.4
+119.9
+Sales tax on account of rebate / classification
+38,643.2
+28,717.0
+Income tax on account of disallowances / additions (Company appeals) *
+Liabilities disputed - appeals filed with respect to:
+II)
+558.3
+569.5
+Claims against the Group not acknowledged as debts
+1)
+Contingent liabilities
+A)
+As at
+March 31, 2022
+Fine imposed for anti-competitive settlement agreement by European Commission:
+With effect from April 01, 2020 Office Pharmaceutique Industriel Et Hospitalier has been merged with Sun Pharma
+France (Formerly Known as Ranbaxy Pharmacie Generiques).
+The Company may now be subject to "follow-on" claims in national courts of some countries. However, the Company
+has not yet been served with a claim detailing the alleged causation and quantum of any purported damages.
+Accordingly, the Company is currently unable to estimate the potential liability which may arise on account of
+follow-on claims. The Company also believes, based on its internal assessment and that of its independent legal
+counsel, that it has favourable legal arguments in terms of defending any potential damages claim.
+% Change
+% of holding
+Number of
+shares
+% Change
+during the year
+% of holding
+Number of
+shares
+Equity shares held by promoters / members of
+promoter group / person acting in concert
+As at March 31, 2021
+As at March 31, 2022
+6.8
+9.6
+230,285,690
+162,207,571
+5.8
+40.3
+% of holding
+As at March 31, 2021
+Number of
+shares
+967,051,732
+40.3
+9.6
+230,285,690
+139,828,706
+967,051,732
+during the year
+% of holding
+Dilip Shantilal Shanghvi
+9.6
+On March 25, 2021, the Court of Justice of the European Union ("CJEU") issued a final judgment and upheld the
+European Commission's ("EC") decision dated June 19, 2013 that a settlement agreement between Ranbaxy (U.K.)
+Limited and Ranbaxy Laboratories Limited (together "Ranbaxy") with Lundbeck was anti-competitive. Ranbaxy had
+made a provisional payment of the fine of Euro 10.3 Million on September 20, 2013. Since there are no further
+rights of appeal, this amount of 895.6 Million (inclusive of legal charges) was provided in the consolidated financial
+statements for the year ended March 31, 2021.
+28,830,352
+Raksha S. Valia
+0.6
+14,345,019
+0.6
+14,345,019
+1.7
+40,153,960
+1.7
+Sudhir V. Valia
+Aditya Medisales Limited
+40.3
+967,051,732
+40.3
+967,051,732
+Shanghvi Finance Private Limited
+9.6
+230,285,690
+230,285,690
+As at March 31, 2022
+Number of
+shares
+40,153,960
+Dilip Shantilal Shanghvi
+633.9
+501.9
+Letters of credit for imports
+III)
+23,436.0
+119.4
+29,833.6
+758.9
+Estimated amount of contracts remaining to be executed on capital account (net of advances) *
+Investment related commitments
+II)
+1)
+* in Million
+As at
+March 31, 2021
+As at
+March 31, 2022
+1,817.6
+As at
+March 31, 2022
+1,579.8
+NOTE: 40 COMMITMENTS
+B) Guarantees given by the bankers on behalf of the Group
+* Income tax matters where department has preferred an appeal against favourable orders received by the Company
+amounted to 40,969.4 Million (March 31, 2021: ₹ 40,524.8 Million). These matters are sub-judice in various forums
+and pertains to various financial years.
+Future cash outflows in respect of the above matters are determinable only on receipt of judgements / decisions
+pending at various forums / authorities.
+Life Insurance Corporation of India and its various funds
+Note:
+* The Group is committed to pay milestone payments and royalty on certain contracts, however, obligation to pay is contingent upon fulfilment of
+contractual obligation by parties to the contract.
+Scaling up Specialty. Leading with Care.
+in Million
+As at
+March 31, 2021
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+255
+iv 7,500,000 (upto March 31, 2021: 7,500,000) equity shares of 1 each have been bought back during the period of five years
+immediately preceding the date at which the Balance Sheet is prepared. The shares bought back were cancelled.
+Shanghvi Finance Private Limited
+2,399.3
+As at March 31, 2021
+Number of shares * in Million
+2,399,334,970
+2,399.3
+2,399,334,970
+As at March 31, 2022
+Number of shares * in Million
+2,399,334,970
+2,399.3
+2,399,334,970
+2,399.3
+Closing balance
+Opening balance
+iii Nil (upto March 31, 2021: 334,956,764) equity shares of 1 each have been allotted, pursuant to scheme of amalgamation, without
+payment being received in cash during the period of five years immediately preceding the date at which the balance sheet is prepared.
+The equity shares of the Parent Company, having par value of 1 per share, rank pari passu in all respects including
+voting rights and entitlement to dividend.
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Reconciliation of the number of equity shares and amount outstanding at the beginning and at the end of reporting
+period
+FOR THE YEAR ENDED MARCH 31, 2022
+i
+NOTE: 41 DISCLOSURES RELATING TO SHARE CAPITAL
+V Equity shares held by each shareholder holding more than 5 percent equity shares in the Parent Company are as follows:
+ii
+Rights, preferences and restrictions attached to equity shares
+Ranbaxy Farmaceutica Ltda.
+419.4
+404.8
+Basics GmbH
+386.8
+394.6
+204.4
+595.4
+3.6
+595.4
+Sun Pharmaceutical Industries Limited
+JSC Biosintez
+1,677.4
+Ranbaxy South Africa (Pty) Ltd
+Zenotech Laboratories Limited
+1,677.4
+347.5
+20,196.2
+Goodwill in respect of:
+* in Million
+As at
+March 31, 2021
+3.4
+211.9
+As at
+March 31, 2022
+Goodwill acquired in business combination is allocated, at acquisition, to the cash generating units (CGUs) that are
+expected to benefit from that business combination. The carrying amount of goodwill has been allocated as follows:
+Sun Pharmaceutical Industries, Inc.
+Sun Farmaceutica do Brasil Ltda.
+19,513.0
+Sun Pharma Japan Ltd.
+Terapia SA
+28,077.2
+27,097.5
+277.2
+127.7
+135.9
+14,721.1
+13,867.7
+Taro Pharmaceutical Industries Ltd.
+Sun Pharmaceutical Medicare Limited
+27.5
+1.0
+1,263.2
+1,303.4
+65,494.5
+62,876.4
+Scaling up Specialty. Leading with Care.
+265
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+ii)
+Below is the reconciliation of the carrying amount of goodwill:
+NOTE: 47 GOODWILL (NET):
+Add/ (less): Foreign currency translation difference
+Closing balance
+Add/ (less): Acquisition during the year
+Opening balance
+63.2
+1.0
+65.5
+1.6
+Total (A)
+66,757.7
+64,179.8
+Less:
+Forward contracts
+Capital reserve in respect of:
+Alkaloida Chemical Company Zrt.
+Ranbaxy Nigeria Limited
+Sun Pharmaceutical Industries Limited
+Ranbaxy Malaysia SDN. BHD.
+Total (B)
+Total (A-B)
+1,168.5
+1,211.1
+1.7
+27.5
+Exposure to market risk with respect to commodity prices primarily arises from the Group's purchases and sales of
+active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients.
+These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the
+Group's raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in
+the Group's active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the
+largest portion of the Group's cost of revenues. Commodity price risk exposure is evaluated and managed through
+operating procedures and sourcing policies. As of March 31, 2022, the Group had not entered into any material
+derivative contracts to hedge exposure to fluctuations in commodity prices.
+AUD
+For the year ended March 31, 2022 and March 31, 2021, every 50 basis point decrease in the floating interest
+rate component applicable on its closing balance of loans and borrowings would increase the Group's profit by
+approximately 46.5 Million and 262.8 Million respectively. A 50 basis point increase in floating interest rate would
+have led to an equal but opposite effect.
+USD
+Buy
+JPY
+Currency swaps
+AUD 1.4
+AUD
+Buy
+USD
+Forward contracts
+USD 11.2
+USD
+Buy
+Forward contracts
+USD 51.5
+USD 55.3
+USD 31.5
+NIS
+USD 47.3
+Forward contracts
+Year ended
+March 31, 2022
+Sell
+USD
+EUR
+Forward contracts
+USD 16.5
+USD 10.9
+USD
+Sell
+GBP
+Forward contracts
+AUD 64.4
+USD
+Sell
+AUD
+Derivatives not designated as hedges
+Commodity rate risk
+Sell
+USD 19.8
+INR
+USD 400.0
+USD 96.2
+Interest rate swaps (Floating to fixed)
+USD
+USD 33.3
+USD 100.0
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Interest rate risk
+The Group has loan facilities on floating interest rate, which exposes the Group to risk of changes in interest rates.
+The Group monitors the interest rate movement and manages the interest rate risk by evaluating interest rate swaps
+etc. based on the market / risk perception.
+Sell
+USD
+USD
+USD 6.0
+USD 24.1
+Forward contracts
+USD
+Sell
+NIS
+USD 3.0
+Forward contracts
+USD
+Sell
+INR
+USD 75.0
+Forward contracts
+RUB
+Buy
+USD
+Currency swaps
+* in Million
+Year ended
+384,264.2
+62,876.4
+31,821.6
+8,069.2
+(503.8)
+39,387.0
+MAT credit entitlement
+13,374.5
+(10,134.1)
+3,240.4
+45,196.1
+(2,064.9)
+(503.8)
+42,627.4
+Less: Deferred tax liabilities
+Difference between written down value of
+7,528.6
+7,954.4
+USD 10.2
+(583.4)
+5,218.8
+12,006.6
+Unabsorbed depreciation / carried forward
+8,632.1
+1,348.7
+9,980.8
+losses
+Inventory and other related items
+8,562.8
+(1,187.7)
+7,375.1
+Intangible assets
+2,392.0
+(321.9)
+2,070.1
+Others
+3,319.0
+79.6
+4,582.9
+property, plant and equipment and capital work-
+in-progress as per books of accounts and income
+income movement
+during the year*
+Deferred tax liabilities
+Difference between written down value of
+property, plant and equipment and capital
+work-in-progress as per books of accounts and
+income tax and others
+2,370.9
+103.4
+2,370.9
+103.4
+* in Million
+Closing balance
+March 31, 2022
+2,474.3
+2,474.3
+Less Deferred tax assets
+Expenses that are allowed on payment basis
+Others
+331.5
+62.7
+Other
+comprehensive
+12,111.5
+Profit/(loss)
+movement during
+the year *
+Deferred tax liabilities (Net)
+tax
+Others
+2,103.1
+(403.7)
+(150.7)
+1,548.7
+9,631.7
+4,179.2
+(150.7)
+13,660.2
+35,564.4
+(6,244.1)
+(353.1)
+28,967.2
+ii)
+Opening balance
+April 01, 2021
+4,911.1
+7,015.9
+Expenses that are allowed on payment basis
+34.944%
+34.944%
+15,659.5
+9,782.1
+Effect of deduction claimed under chapter VI A of Income Tax Act, 1961
+(14,385.8)
+(10,625.3)
+Effect of income that is exempt from tax
+(8.7)
+(89.0)
+Effect of expenses that are not deductible
+2,173.4
+562.7
+Effect of Incremental deduction allowed on account of research and development costs and other
+allowances
+(153.8)
+27,993.7
+(148.9)
+44,813.2
+Income tax rate in India (%)
+64,814.6
+344.8
+2,273.3
+(1,938.2)
+62,876.4
+65,494.5
+The carrying amount of goodwill is stated above. The recoverable amounts have been determined based on value in
+use calculations which uses cash flow projections covering a period of five years (which are based on key assumptions
+such as expected growth rates based on past experience, margins and Management's expectations/ extrapolation
+of normal increase/ steady terminal growth rate) and appropriate discount rates that reflects current market
+assessments of time value of money and risks specific to these investments. The cash flow projections includes
+estimates for five years developed using internal forecasts and terminal growth rate thereafter. The planning horizon
+reflects the assumptions for short to mid-term market developments. The average growth rate used in extrapolating
+cash flows beyond the planning period ranged from (5.0%) to 8.0% for the year ended March 31, 2022. Discount rate
+reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated
+on the weighted average cost of capital for respective CGU or group of CGUs. Discount rate used ranged from 3.9%
+to 12.0% for the year ended March 31, 2022. The discount rate considered for the Company's operation in the United
+States ranges from 5.3% and 6.7% and for Terapia SA has been considered at 7.5%. The management believes that
+any reasonable possible change in key assumptions on which recoverable amount is based is not expected to cause
+the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit. Based on
+the impairment assessment, the Management has determined no impairment loss in the value of goodwill.
+NOTE: 48 Disclosures mandated by the Companies Act, 2013 Schedule III Part II by way of additional information is
+given in Annexure 'A'.
+NOTE: 49 INCOME TAXES
+Tax reconciliation
+* in Million
+Year ended
+March 31, 2022
+Year ended
+March 31, 2021
+Reconciliation of tax expense
+Profit before tax
+Income tax expense calculated at corporate tax rate
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets (net)
+Effect of difference between Indian and foreign tax rates and non taxable subsidiaries
+Effect of deferred tax expense/ (credit) on unrealised profits
+(291.1)
+82.3
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTE: 50 DEFERRED TAX
+i)
+Deferred tax assets (Net)
+in Million
+Other
+Profit/(loss)
+Opening balance
+April 01, 2021
+movement during
+the year*
+comprehensive
+income movement
+during the year
+Closing balance
+March 31, 2022
+*
+Deferred tax assets
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+1,909.0
+2,093.0
+333.4
+660.1
+Tax payable under Minimum Alternate Tax (MAT) on which deferred tax assets was not created
+Effect of reversal of MAT credit entitlement, restructuring of an acquired entity and DOJ settlement
+Others
+6,070.0
+3,972.9
+March 31, 2021
+4,406.0
+(4,956.9)
+(5,445.6)
+Income tax expense recognised in consolidated statement of profit and loss
+10,755.0
+5,146.9
+Pursuant to the Scheme of Amalgamation and Merger of Sun Pharma Global FZE, with the Company, as approved by the
+National Company Law Tribunal on August 31, 2021, Sun Pharma Global FZE, merged with the Company w.e.f. January 01,
+2020. The cumulative tax impact of this merger has been given in the standalone financial statements for the year ended
+March 31, 2022. The Company has not created a deferred tax asset on the losses of the merged entity.
+266
+4,302.6
+USD 20.8
+Recoveries/reversals / foreign exchange fluctuation
+Sell
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Movement in the expected credit loss allowance on trade receivables
+Year ended
+March 31, 2022
+in Million
+Year ended
+March 31, 2021
+Balance at the beginning of the year
+Addition
+Taken over on acquistion
+35.7
+Balance at the end of the year
+2,410.4
+473.0
+1,111.8
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+(309.6)
+261
+Unbilled revenue as at March 31, 2022 is 382.3 Million (March 31, 2021 : 670.4 Million).
+(iv) Disputed Trade Receivables -
+2.5
+33.6
+15.7
+254.1
+305.9
+credit impaired
+79,362.5
+10,255.2
+667.3
+772.8
+191.5
+1,775.1
+93,024.4
+Note
+Scaling up Specialty. Leading with Care.
+6.1
+3,685.6
+(418.6)
+More than 3 years
+Total
+7,007.7
+2,299.2
+9,306.9
+1,078.2
+1,434.9
+1,083.0
+3,596.1
+44,793.4
+44,793.4
+18,522.9
+71,402.2
+309.8
+1.2
+3,735.3
+18,524.1
+As at March 31, 2022
+1 - 3 years
+2,513.7
+315.3
+Less than 1 year
+Derivatives
+2,410.4
+Other than Trade receivables, the Group has recognised an allowance of 15.3 Million (March 31, 2021 : 15.3 Million)
+against past due loans including interest and 500.0 Million (March 31, 2021 : 500.0 Million) of other receivables based
+on assessment regarding its future recoverability.
+Liquidity risk
+Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group
+manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
+due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Group's reputation.
+The Group had unutilised working capital lines from banks of 74,815.8 Million as on March 31, 2022 (March 31, 2021 :
+* 68,518.2 Million).
+The table below provides details regarding the contractual maturities of significant financial liabilities :
+Non derivative
+Borrowings
+Lease liabilities
+Trade payables
+Other financial liabilities
+Derivatives
+Non derivative
+Borrowings
+Lease liabilities
+Trade payables
+Other financial liabilities
+* in Million
+1,083.0
+0.9
+1.5
+1,506.2
+3,379.0
+credit impaired
+(iii)
+Disputed Trade Receivables -
+*0.0
+3.7
+3.7
+considered good
+(iv)
+Disputed Trade Receivables -
+1.7
+33.4
+271.5
+306.6
+97.3
+credit impaired
+469.7
+593.1
+* in Million
+As at March
+31, 2022
+Trade receivables ageing
+(i)
+Undisputed Trade receivables -
+considered good
+93,786.3
+10,460.8
+1,137.9
+323.6
+154.6
+62.0
+105,925.2
+(ii)
+Undisputed Trade Receivables -
+79.5
+633.2
+3.7
+93,865.8
+1,771.1
+506.0
+116.1
+49.0
+90,607.9
+considered good
+(ii)
+Undisputed Trade Receivables –
+credit impaired
+154.8
+66.8
+122.6
+229.5
+58.8
+1,472.0
+2,104.5
+(iii) Disputed Trade Receivables -
+considered good
+544.7
+11,053.9
+10,184.4
+Undisputed Trade receivables -
+795.0
+289.0
+1,839.7
+109,614.5
+** 8,015/-
+Not due
+Less than
+6 months
+6 months
+1-2 years
+2-3 years
+-1 year
+More than
+3 years
+* in Million
+As at March
+31, 2021
+Trade receivables ageing
+(i)
+79,207.7
+76,220.5
+160.0
+469.8
+Borrowings
+Payables/Provisions
+13,766.3
+1,484.2
+3,307.5
+18,558.0
+36,087.5
+49,853.8
+2,930.8
+4,415.0
+11.2
+11.2
+164.9
+164.9
+1,208.7
+4,516.2
+40,403.1
+58,961.1
+b) Sensitivity
+For the years ended March 31, 2022 and March 31, 2021 every 5% strengthening of the Indian rupee against
+major foreign currencies for the above mentioned financial assets/liabilities would increase Group's profit and
+Group's equity by approximately 476.9 Million and decrease Group's profit and Group's equity by approximately
+* 141.1 Million respectively. A 5% weakening of the Indian rupee and the respective major currencies would lead
+to an equal but opposite effect.
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because
+the exposure at the end of the reporting period does not reflect the exposure during the year.
+Financial liabilities
+Scaling up Specialty. Leading with Care.
+58,240.2
+3,542.9
+61,783.1
+2,894.6
+As at March 31, 2021
+Russian
+Rouble
+South African
+Rand
+Japanese Yen
+Total
+Financial assets
+Receivables
+46,477.0
+3,601.3
+Cash and cash equivalents
+1,481.0
+1,389.5
+47,958.0
+4,990.8
+4,110.2
+246.6
+4,356.8
+2,894.6
+1,157.1
+425.8
+1,582.9
+Euro
+263
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+INR
+ZAR 360.0
+Forward contracts
+USD
+Sell
+INR
+USD 501.2
+ZAR 300.0
+USD 430.6
+Forward contracts
+USD
+Buy
+JPY
+USD 7.6
+Forward contracts
+USD
+Sell
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+ZAR
+Derivatives designated as hedges
+FOR THE YEAR ENDED MARCH 31, 2022
+264
+Derivative contracts
+The Group is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in
+US Dollar, Euro, South African Rand, Japanese Yen and Russian Rouble and foreign currency debt is primarily in US
+Dollar. The Group uses foreign currency forward contracts, foreign currency option contracts, interest rate swap and
+currency swap contracts (collectively, "derivatives") to mitigate its risk of changes in foreign currency exchange rates.
+The counterparty for these contracts is generally a bank or a financial institution.
+Hedges of highly probable forecasted transactions
+The Group designates its derivative contracts that hedge foreign exchange risk associated with its highly probable
+forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow
+hedges is recorded as in other comprehensive income, and re-classified in the income statement as revenue in the
+period corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow
+hedges is immediately recorded in the consolidated statement of profit and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Group has recorded a net loss
+of 515.3 Million for the year ended March 31, 2022 and net gain of 1,451.3 Million for the year ended March
+31, 2021 in other comprehensive income. The Group also recorded hedges as a component of revenue, net gain of
+1,128.3 Million for year ended March 31, 2022 and net gain of ₹ 108.6 Million for year ended March 31, 2021 on
+occurrence of forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and
+liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in the consolidated
+statement of profit and loss. The changes in fair value of the forward contracts and option contracts, as well as the
+foreign exchange gains and losses relating to the monetary items, are recognised in the consolidated statement of
+profit and loss.
+The following table gives details in respect of the notional amount of outstanding foreign exchange
+derivative contracts:
+Amount in Million
+Currency
+Buy / Sell
+Cross
+Currency
+As at
+March 31, 2022
+As at
+March 31, 2021
+Forward contracts
+US Dollar
+* in Million
+84,537.6
+115,399.6
+192.4
+336.6
+Market risk
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
+market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of
+market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable
+to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and
+long-term debt. The Group is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and
+the market value of its investments. Thus, the Group's exposure to market risk is a function of investing and borrowing
+activities and revenue generating and operating activities in foreign currencies.
+262
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Foreign exchange risk
+The Group's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily
+in US Dollar, Euro, South African Rand, Japanese Yen and Russian Rouble) and foreign currency borrowings (primarily
+in US Dollar). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Group's
+revenues and expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between
+the Indian rupee and these foreign currencies has changed substantially in recent periods and may continue to fluctuate
+substantially in the future. Consequently, the Group uses both derivative and non-derivative financial instruments, such as
+foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to
+mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and
+recognised assets and liabilities.
+a)
+1,158.8
+Significant foreign currency risk exposure relating to trade receivables, cash and cash equivalents, borrowings and
+trade payables
+36,977.2
+106,414.9
+144.2
+As at March 31, 2021
+* in Million
+Less than 1 year
+1-3 years
+More than 3 years
+Total
+28,687.8
+1,016.7
+6,536.3
+1,286.2
+10.8
+1,148.0
+35,234.9
+3,450.9
+39,736.6
+39,736.6
+36,973.8
+3.4
+7,825.9
+* in Million
+As at March 31, 2022
+US Dollar
+Financial liabilities
+Borrowings
+9,856.7
+869.5
+2,071.7
+12,797.9
+Payables/ Provisions
+68,419.2
+2,592.2
+78,275.9
+3,461.7
+41.6
+41.6
+174.3
+174.3
+512.4
+2,584.1
+71,739.7
+74,999.4
+70,385.8
+4,613.6
+1,186.7
+328.0
+1,514.7
+1,625.1
+Euro
+Russian
+Rouble
+South African
+Rand
+Japanese Yen
+Total
+Financial assets
+Receivables
+CAD
+59,288.7
+Cash and cash equivalents
+2,029.2
+1,689.5
+61,317.9
+5,898.5
+4,076.3
+566.9
+4,643.2
+1,625.1
+4,209.0
+429.9
+More than
+3 years
+(7.6)
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+iii)
+Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have
+been recognised are attributable to the following:
+Unabsorbed depreciation
+Tax losses (includes capital in nature)
+Unused tax credits (MAT credit entitlement)
+Deductible temporary differences
+As at
+March 31, 2022
+122,169.7
+* in Million
+As at
+March 31, 2021
+97,221.0
+36,103.9
+30,014.5
+7,209.7
+2,410.7
+19,549.5
+22,261.9
+The unused tax credits will expire from financial year 2022-23 to financial year 2036-37 and unused tax losses will expire from financial
+year 2022-23 to 2040-41. However in case of certain overseas subsidiaries there is no expiry period for tax losses and unused tax
+credits.
+NOTE: 51 EARNINGS PER SHARE
+1-2 years
+6 months
+-1 year
+Less than
+6 months
+Not due
+Financial assets for which loss allowances is measured using the expected credit loss
+The Group has used expected credit loss (ECL) model for assessing the impairment loss. For this purpose, the Group uses a
+provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal
+risk factors and historical data of credit losses from various customers.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Trade receivables
+267
+* Movement during the year includes foreign currency translation difference amounting to ₹ 611.0 Million gain for the year ended March 31,
+2022 and also includes on account of acquisition 454.4 Million.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates their
+fair value.
+Reconciliation of Level 3 fair value measurements
+165.5
+1.3
+332,330.8
+159.2
+497.0
+64.0
+28.1
+589.1
+MAT credit entitlement
+1,428.8
+137.8
+1,566.6
+1,925.8
+201.8
+445.1
+(98.4)
+28.1
+(28.1)
+2,155.7
+318.6
+Scaling up Specialty. Leading with Care.
+The Group limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have
+a good credit rating. The Group does not expect any significant losses from non-performance by these counter-parties, and
+does not have any significant concentration of exposures to specific industry sectors or specific country risks.
+Investments
+Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
+contractual obligations and arises principally from the Group's receivables from customers, loans and investments. Credit
+risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
+counterparty to which the Group grants credit terms in the normal course of business.
+Dividend on equity shares paid during the year
+b)
+Debt to total equity ratio
+Total equity, including reserves
+Debt (includes borrowings and lease liabilities)
+a) Debt equity ratio
+The Group monitors capital on the basis of the carrying amount of debt as presented in the consolidated financial
+statements. The Group's objective for capital management is to maintain an optimum overall financial structure.
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+604.9
+84.4
+9.6
+614.5
+401.6
+118.9
+604.9
+March 31, 2021
+* in Million
+Year ended
+Year ended
+March 31, 2022
+- to ensure the Group's ability to continue as a going concern; and
+The Group's capital management objectives are:
+NOTE: 45 CAPITAL MANAGEMENT
+Balance at the end of the year
+Others including fair value changes and foreign exchange fluctuations
+Purchases
+Balance at the beginning of the year
+Unlisted shares valued at fair value
+Dividend on equity shares
+* in Million
+As at
+March 31, 2022
+12,903.0
+480,112.2
+0.03
+Credit risk
+The Group's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
+Group's risk management assessment and policies and processes are established to identify and analyse the risks faced
+by the Group, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk
+assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and
+the Group's activities.
+NOTE: 46 FINANCIAL RISK MANAGEMENT
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+260
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and hence not
+recognised as liability.
+share
+259
+per
+Dividends not recognised at the end of the reporting period
+13,191.3
+16,790.5
+2,399.3
+4,798.6
+Interim dividend for the year ended March 31, 2022 of 7
+(year ended March 31, 2021: 5.5) per fully paid share
+(year ended March 31, 2020: 1) per fully paid share
+Final dividend for the year ended March 31, 2021 of 2
+Year ended
+March 31, 2021
+* in Million
+Year ended
+March 31, 2022
+As at
+March 31, 2021
+38,685.8
+464,627.8
+0.08
+The Board of Directors at it's meeting held on May 30, 2022 have recommended payment of final dividend of 3
+of face value of 1 each for the year ended March 31, 2022. The same amounts to ₹7,197.9 Million.
+Scaling up Specialty. Leading with Care.
+There were no transfers between Level 1 and 2 in the periods.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of
+unquoted investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents
+estimate of fair value within that range.
+NOTE: 52 SEGMENT REPORTING
+Diluted earnings per share (in )
+Basic earnings per share (in )
+Face value per share (in )
+Profit for the year (in Million) - used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic and diluted earnings per share
+2-3 years
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated Accounts
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Year ended
+March 31, 2022
+NOTE: 44 FAIR VALUE HIERARCHY
+* in Million
+Level 1
+As at March 31, 2022
+Level 2
+Level 3
+Financial assets
+Investments
+Equity instruments - quoted #
+Equity instruments - quoted
+6,886.3
+1,487.3
+Equity instruments - unquoted
+# These investments in equity instruments are not held for trading. Upon the application of Ind AS 109, the Company has chosen to
+designate these investments in equity instruments at fair value through other comprehensive income.
+212.0
+402.5
+Financial assets and liabilities measured at fair value on a recurring basis at the end of each reporting period
+Year ended
+March 31, 2021
+32,727.3
+2,399,334,970
+55,041.7
+59,725.5
+64,058.4
+72,756.5
+103,647.0
+109,583.7
+134,438.6
+117,343.6
+* in Million
+Year ended
+March 31, 2021
+Year ended
+March 31, 2022
+268
+Rest of the world
+Emerging markets
+United States of America
+India
+Revenue by Geography
+The reportable segments derives their revenues from the sale of pharmaceuticals products (generics, speciality,
+API, etc.). The CODM reviews revenue as the performance indicator. The measurement of each segment's revenues,
+expenses and assets is consistent with the accounting policies that are used in preparation of the Group's consolidated
+financial statements.
+4. Rest of the world
+3. Emerging markets
+2. United States of America
+The Chief Operating Decision Maker ('CODM') evaluates the Group's performance and allocates resources based on an
+analysis of various performance indicators by reportable segments. The Group's reportable segments are as follows:
+1. India
+12.1
+13.6
+1
+12.1
+13.6
+1
+2,399,334,970
+29,038.2
+Bonds/debentures - quoted
+59,580.6
+Equity instruments - unquoted #
+36,021.4
+Total
+Financial liabilities
+Derivatives designated as hedges
+Mutual funds unquoted
+Total
+* in Million
+Level 1
+As at March 31, 2021
+Level 2
+Level 3
+8,185.5
+1,718.3
+Derivatives not designated as hedges
+204.9
+400.0
+310.0
+19,293.9
+9,072.4
+724.0
+120.8
+83,841.6
+9,917.2
+604.9
+293.2
+43.4
+336.6
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly.
+Level 3 inputs are unobservable inputs for the asset or liability.
+54,333.9
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Others - quoted
+14,790.8
+Venture funds - unquoted
+6,444.2
+Derivatives designated as hedges
+306.0
+Derivatives not designated as hedges
+Venture funds - unquoted
+626.9
+Total
+Others quoted
+7,377.1
+614.5
+118,766.4
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Total
+432.0
+37.8
+469.8
+Financial assets
+Investments
+Equity instruments - quoted #
+Mutual funds unquoted
+Financial liabilities
+Bonds/debentures - quoted
+Equity instruments - quoted
+Equity instruments - unquoted
+Equity instruments - unquoted #
+487.2
+122.1
+89.5
+1,760.0
+5,549.6
+4,261.0
+600.2
+3,336.3
+83.8
+12.3
+2,187.1
+91.3
+(89.5)
+567.0
+90.4
+634.3
+93.1
+6.7
+566.2
+91.5
+718.3
+1,183.7
+Corporate Overview
+Statutory Reports
+Financial Statements
+8.4
+11.3
+b)
+2,919.4
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+277
+Scaling up Specialty. Leading with Care.
+The Group continues to monitor the impact of COVID-19 on its business, including its impact on customers, supply-chain,
+employees and logistics. Due care has been exercised, in concluding on significant accounting judgements and estimates,
+including in relation to recoverability of receivables, assessment of impairment of goodwill and intangibles, investments
+and inventory, based on the information available to date, while preparing the Group's consolidated financial statements as
+of and for the year ended March 31, 2022.
+NOTE: 65
+Further, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities
+("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall,
+whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
+behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
+Ultimate Beneficiaries.
+No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
+sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
+("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
+whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
+on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
+Ultimate Beneficiaries. However, the Company, as a part of its treasury operations, invests/advances loans to fund
+the operations of its subsidiaries/associates/joint venture which have further utilised these funds for their general
+corporate purposes/ working capital, etc. within the consolidated group of the Company and in the ordinary course of
+business. These transactions are done on an arms' length basis following a due approval process.
+g)
+The parent company and its Indian subsidiaries has not been declared wilful defaulter by any bank or financial
+institution or government or any other government authorities.
+f)
+The Group has not been sanctioned working capital limits from banks or financial institutions during any point of time
+of the year on the basis of security of current assets.
+The parent company and its Indian subsidiaries does not have any transaction which is not recorded in the books of
+accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income
+Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
+NOTE: 66 DETAILS OF LONG-TERM BORROWINGS AND CURRENT MATURITIES OF LONG-TERM DEBT
+[INCLUDED UNDER SHORT TERM BORROWINGS]
+e)
+The Group has not granted any loans or advances in the nature of loans to promoters, directors and KMPs (as defined
+under the Companies Act, 2013), either severally or jointly with any other person.
+c)
+The Group has not traded or invested in crypto currency or virtual currency during the financial year.
+b)
+No proceeding have been initiated or pending against the parent company and its Indian subsidiaries under the
+Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder.
+a)
+NOTE: 64
+The date of implementation of the Code on Wages 2019 and the Code on Social Security, 2020 is yet to be notified by the
+Government. The Company will assess the impact of these Codes and give effect in the consolidated financial statement
+when the Rules/Schemes thereunder are notified.
+NOTE: 63
+In September 2013, the USFDA had put the Mohali facility under import alert and it was also subjected to certain
+provisions of the consent decree of permanent injunction entered in January 2012 by erstwhile Ranbaxy Laboratories
+Ltd (which was merged with parent company in March 2015). In March 2017, the USFDA lifted the import alert and
+indicated that the facility was in compliance with the requirements of cGMP provisions mentioned in the consent
+decree. The Mohali facility continues to demonstrate sustainable cGMP compliance and has completed the 5-year
+post certification provisions as required by the consent decree. The parent Company continues to receive approval of
+applications, manufacture and distribute products to the U.S from this facility.
+d)
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+d)
+Financial Statements
+A Secured term loan from other parties:
+Secured term loan from department of biotechnology of Nil (March 31, 2021 : ₹ 75.7 Million) was secured by
+hypothecation of movable assets of the parent company. The loan has been repaid during the current year.
+365.7
+365.7
+1,477.0
+1,477.0
+As at
+March 31, 2021
+As at
+March 31, 2022
+* in Million
+278
+Loans have been granted to the above entity for the purpose of its business.
+Considered good
+Medinstill LLC (Refer note 57)
+Interest bearing with specified repayment schedule:
+NOTE: 68 LOANS/ADVANCES DUE FROM AN ASSOCIATE
+Borrowings/ debt availed by overseas subsidiaries/joint venture are usually supported by the letters of awareness issued
+by the parent company.
+NOTE: 67 DETAILS OF SECURITIES FOR CURRENT BORROWINGS ARE AS UNDER:
+(i)
+The Company has not defaulted on repayment of loan and interest payment thereon during the year. The
+aforementioned unsecured ECBs have been availed from bank in different currencies. USD ECB loan is at
+floating rate linked to applicable Libor (1.30% p.a. as at March 31, 2022) and the JPY ECB loan is at fixed
+rate (0.47% p.a. as at March 31, 2022)
+* 3,657.3 Million). The loan was taken on August 29, 2019 and is repayable in 3 equal installments of USD
+16.67 Million each. The first installment of USD 16.67 Million has been repaid during the year. Second
+installment of USD 16.67 Million is due on August 29, 2022 and last installment of USD 16.67 Million is due
+on August 29, 2023.
+2,526.6 Million (March 31, 2021:
+USD 33.3 Million (March 31, 2021 USD 50.0 Million) equivalent to
+USD Nil (March 31, 2021 USD 50 Million) equivalent to Nil (March 31, 2021 : 3,657.4 Million). The loan
+was taken on October 03, 2018 and was repayable in 2 equal installments of USD 25 Million each. The loan
+has been repaid during current year.
+c)
+b)
+a)
+Unsecured External Commercial Borrowings (ECBs) comprises of 1 loan of USD 33.3 Million (March 31, 2021 :
+USD 100.0 Million) equivalent to 2,526.6 Million (March 31, 2021 : 7,314.7 Million) and 1 loan of JPY 3333.3
+Million (March 31, 2021 : JPY 5000.0 Million) equivalent to 2,071.8 Million (March 31, 2021 : 3,307.4 Million).
+For the ECB loans outstanding as at March 31, 2022, the terms of repayment for borrowings are as follows:
+(i)
+Unsecured
+Term loan from banks:
+B
+The Company has not defaulted on repayment of loan and interest payment thereon during the year. The above
+secured loans have been availed at an interest rate range of 1% to 3%.
+(ii) Secured term loan from Industrial development fund, Russia of RUB 25 Million equivalent to 23.3 Million (March 31,
+2021: 96.7 Million) has been secured by bank guarantee. The loan was taken on July 14, 2020 and is repayable in 4
+equal quarterly installments of RUB 25 Million each commencing from September 30, 2021.
+JPY 3333.3 Million (March 31, 2021 JPY 5000.0 Million) equivalent to 2,071.8 Million (March 31, 2021
+: 3,307.4 Million). The loan was taken on August 29, 2019 and is repayable in 3 equal installments of JPY
+1667 Million each. The first installment of JPY 1667 has been repaid during the year. Second installment
+of JPY 1667 Million is due on August 29, 2022 and last installment of JPY 1667 Million is due on August
+29, 2023.
+Statutory Reports
+Corporate Overview
+276
+1,250.8
+(46,298.7)
+(43,124.5)
+51,653.9
+87,713.0
+36,819.9
+41,622.8
+March 31, 2021*
+* in Million
+Year ended
+Year ended
+March 31, 2022*
+Closing balance (Also Refer note 61)
+Add/(less): Foreign currency translation difference
+Less: Utilisation/settlement/reversal
+Add: Provision for the year
+(552.3)
+Opening balance
+NOTE : 59 The Group does not have any material associates or joint venture warranting a disclosure in respect of
+individual associate or joint venture. The Group's share of other comprehensive income is Nil (March 31, 2021: * Nil) in
+respect of such associates and joint venture. The unrecognised share of loss is Nil (March 31, 2021: Nil) in respect of
+such associates and joint venture.
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+274
+NOTE: 58 Expenditure related to Corporate Social Responsibility (CSR) as per Section 135 of the Companies Act, 2013
+read with Schedule VII thereof: 458.3 Million (March 31, 2021:575.6 Million).
+NOTE: 57 RELATED PARTY DISCLOSURES (IND AS-24) - AS PER ANNEXURE 'B'.
+NOTE: 56 On November 4, 2019, Taro announced that its Board of Directors approved a USD 300 Million share repurchase
+of ordinary shares. On November 15, 2019, Taro commenced a modified "Dutch auction" tender offer to repurchase up
+to USD 225 Million in value of its ordinary shares. In accordance with the terms and conditions of the tender offer, which
+expired on December 16, 2019, Taro repurchased 280,719 ordinary shares at the final purchase price of USD 91.00 per share.
+During the year ended March 31, 2022 and March 31, 2021, in accordance with Rule 10b5-1 program, Taro repurchased
+341,413 shares at an average price of USD 73.03 per share and 332,033 shares at an average price of USD 75.23 per share
+respectively, leaving USD 224.5 Million remaining under the current board authorization of Taro.
+In the United States, the Company sponsors a defined contribution 401(k) retirement savings plan for all eligible
+employees who meet minimum age and service requirements. The Company has no further obligations under the
+plan beyond its annual matching contributions.
+The contribution expected to be made by the parent company and its Indian subsidiaries for gratuity, during
+financial year ending March 31, 2023 is ₹1,410.3 Million (March 31, 2022 923.2 Million).
+1,089.6
+NOTE: 60 In respect of any present obligation as a result of a past event that could lead to a probable outflow of
+resources, provision has been made, which would be required to settle the obligation. The said provisions are made as per
+the best estimate of the management and disclosure as per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent
+Assets" has been given below:
+87,462.1
+41,622.8
+* Includes provision for trade commitments, discounts, rebates, price reductions, product returns, chargeback, medicaids,
+contingency provision and clawback.
+The December 2019 USFDA inspection of Halol facility was classified as Official Action Indicated (OAI). The
+Company was in continuous communication with the USFDA to resolve the outstanding issues and was awaiting a
+re-inspection by USFDA to resolve the OAl status. However, due to the COVID-19 pandemic and travel restrictions,
+the re-inspection was delayed. In April-May 2022, the USFDA inspected the Halol facility and issued Form-483 with
+10 observations. The Company will be submitting a comprehensive response, including the corrective actions to be
+undertaken for addressing the observations, within the stipulated time to the USFDA.
+The USFDA, on January 23, 2014, had prohibited using API manufactured at Toansa facility for manufacture of
+finished drug products intended for distribution in the U.S. market. Consequentially, the Toansa manufacturing facility
+was subject to certain provisions of the consent decree of permanent injunction entered in January 2012 by erstwhile
+Ranbaxy Laboratories Ltd (which was merged with Sun Pharmaceutical Industries Ltd in March 2015). In addition, the
+Department of Justice of the USA ('US DOJ'), United States Attorney's Office for the District of New Jersey had also
+issued an administrative subpoena dated March 13, 2014 seeking information. The parent company continues to fully
+co-operate and provide requisite information to the US DOJ.
+Since the USFDA import alert at Karkhadi facility in March 2014, the parent company remained fully committed
+to implement all corrective measures to address the observations made by the USFDA with the help of third
+party consultant. The Parent Company had completed all the action items to address the USFDA warning letter
+observations issued in May 2014. The contribution of this facility to Company's revenues was negligible.
+c)
+Consolidated Accounts
+a)
+NOTE: 62
+Consequent to the settlement of lawsuit mentioned in 61 (f) above, during the year ended March 31, 2022, the parent
+company has reassessed the expected timing of utilisation of Minimum Alternate Tax (MAT) credit and based on this
+reassessment written off MAT credit of ₹4,406.0 Million and disclosed the charge as an exceptional item.
+Exceptional tax for the year ended March 31, 2022, is on account of recognition of deferred tax asset amounting to
+* 4,897.5 Million arising out above settlement."
+The parent company and certain of its subsidiaries are defendants in a number of class action lawsuits brought by
+purchasers and payors in the U.S. alleging violation of antitrust laws with respect to its ANDAs for Valganciclovir,
+Valsartan and Esomeprazole. The cases were transferred to the U.S. District Court for the District of Massachusetts
+for coordinated proceedings. With a view to resolve the dispute and avoid uncertainty, a settlement without any
+admission of guilt or violation of any statute, law, rule or regulation, or of any liability or wrongdoing was reached with
+all of the plaintiff classes on March 23, 2022, for a total settlement amount of USD 485 Million and incurred related
+legal charges of USD 8.3 Million pertaining to this lawsuit (equivalent to 37,231.5 Million inclusive of legal charges).
+The settlement is subject to final approval by the Court.
+Tax gain (exceptional) for the year ended March 31, 2021 also includes creation of a deferred tax asset amounting to
+* 2,882.8 Million arising out of subsequent measurement attributable to restructuring of an acquired entity.
+g)
+f)
+e)
+During the year ended March 31, 2022 the Company has incurred a one-time cost of 563.5 Million in relation to
+restructuring of operations in certain countries. This has been disclosed as exceptional item.
+Exceptional item includes 1,503.3 Million towards impairment of an acquired intangible asset under development.
+Further, the Group disposed off assets which were classified as assets held for sale as per the requirements of IND AS
+105 and a write down of 382.4 Million was disclosed as an exceptional item.
+On March 25, 2021 the CJEU (Court of Justice to the European Union) issued a final judgment and upheld the
+European Commission's ("EC") decision dated June 19, 2013 that a settlement agreement between Ranbaxy (U.K.)
+Limited and Ranbaxy Laboratories Limited (together "Ranbaxy") with Lundbeck was anti-competitive. Ranbaxy had
+made a provisional payment of the fine of Euros 10.3 Million on September 20, 2013. Since there were no further
+rights of appeal, this amount of 895.6 Million (inclusive of legal charges) was provided in the consolidated financial
+statements for the year ended March 31, 2021.
+NOTE: 61 EXCEPTIONAL ITEMS INCLUDE:
+a)
+On July 23, 2020, Taro Pharmaceuticals U.S.A., Inc. ("Taro"), our subsidiary, globally resolved all matters in connection
+with the multi-year investigations by the Department of Justice, Antitrust Division and Civil Division ("DOJ") into the
+United States generic pharmaceutical industry. Under a Deferred Prosecution Agreement reached with DOJ Antitrust,
+the DOJ filed an Information for conduct that took place between 2013 and 2015. If Taro adheres to the terms of
+the agreement, including the payment of $ 205.7 Million (equivalent to ₹ 15,601.8 Million), the DOJ will dismiss the
+Information at the end of a three-year period. Taro has paid this amount in full to the Antitrust Division. Taro also
+reached an agreement with the DOJ Civil Division on September 30, 2021, pursuant to which Taro agreed to pay $
+213.3 Million (equivalent to 16,179.6 Million) to resolve all claims related to federal healthcare programs. Taro U.S.A.
+has paid this amount in full to the Civil Division. Further, in respect of ongoing multi-jurisdiction civil antitrust matters,
+currently in progress, Taro has made a provision of $ 200 Million (equivalent to 14,809.4 Million). Of the $ 200
+Million (equivalent to 14,809.4 Million), amounts of $ 60 Million and $ 80 Million (equivalent to 4,551.9 Million and
+* 5,832.5 Million) were accounted for in year ended March 31, 2021. Further, an additional provision of $ 60 Million
+(equivalent to 4,425.0 Million) was recognised in the year ended March 31, 2022.
+On April 08, 2022, our U.S. subsidiaries, Taro and Sun Pharmaceutical Industries Inc, (SPIINC) each entered into
+settlement agreements that resolve the above-reference civil anti-trust matter with the Direct Purchaser Plaintiffs
+class ("DPPS"), without any admission of guilt or violation of any statute, law, rule or regulation, or of any liability or
+wrongdoing, pursuant to which Taro will pay approximately USD 59.6 Million (provided for in earlier period) depending
+on the number of certain class members that may opt-out of the settlement, and SPIINC will pay approximately USD
+15.3 Million (equivalent to 1,151.8 Million) depending on the number of certain class members that may opt-out of
+the settlement. Taro's and SPIINC's settlements with the DPPs is subject to final approval by the Court.
+During the year SPIINC provided USD 15.3 Million for payments to DPPs. This along with related legal charges of USD
+5.5 Million pertaining to this lawsuit (equivalent to ₹ 1,562.5 Million inclusive of legal charge) has been disclosed as
+exceptional item during the year ended March 31, 2022.
+Exceptional tax for the year ended March 31, 2022 and March 31, 2021, is on account of recognition of deferred tax
+asset amounting to 272.7 Million and 1,212.3 Million arising out of the above settlements.
+77.1
+Scaling up Specialty. Leading with Care.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+b)
+c)
+d)
+275
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+FOR THE YEAR ENDED MARCH 31, 2022
+Non-current Assets by Geography [includes Property, plant and equipment, Capital work-in-progress, Other intangible
+assets, Intangible assets under development and Other non-current assets
+3,470.6
+4,097.4
+Gratuity
+(Funded)
+March 31, 2021
+Year ended
+Gratuity
+(Funded)
+March 31, 2022
+Year ended
+As at March 31, 2022
+256.0
+(Unfunded)
+Plan assets as at the year end
+Benefits paid
+Employer's contribution during the year
+Actuarial gain/(loss)
+Assets transferred in/ Acquisitions
+Expected return
+Plan assets as at the beginning of the year
+Reconciliation of plan assets
+FOR THE YEAR ENDED MARCH 31, 2022
+COVID-19
+Education
+225.4
+2.0
+45.3
+Expected return on plan assets
+6.25%
+6.45%
+In range of
+6.75% to
+7.05%
+6.90%
+6.85%
+Discount rate
+Assumptions:
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+As at March 31, 2021
+* in Million
+4,097.4
+4,616.1
+(151.4)
+(240.3)
+570.5
+457.7
+(19.7)
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+5.4
+155.1
+(40.4)
+due to change in financial assumptions
+-
+assumptions
+(4.6)
+due to change in demographic
+Actuarial (gains)/losses on obligations
+(151.4)
+(61.9)
+(240.3)
+(62.1)
+Benefits paid
+264.2
+65.6
+287.8
+70.1
+Interest cost
+441.2
+483.3
+(91.1)
+N.A.
+due to experience
+Obligation as at the year end
+Corporate Overview
+509.7
+921.2
+(4,097.4)
+(4,616.1)
+4,607.1
+5,537.3
+Gratuity
+(Funded)
+Gratuity
+(Funded)
+As at
+March 31, 2021
+As at
+March 31, 2022
+* in Million
+Net liability recognised in the consolidated financial statement
+Fair value of plan assets
+Present value of commitments (as per actuarial valuation)
+Reconciliation of liability/(asset) recognised in the consolidated balance sheet
+83.7
+4,607.1
+68.8
+1,087.6
+244.3
+5,537.3
+1,072.2
+92.5
+17.0
+92.5
+N.A.
+N.A.
+(6.4)
+7.1
+Gratuity
+(Funded)
+As at March 31, 2021
+Pension
+Fund
+(Unfunded)
+Gratuity
+(Funded)
+As at March 31, 2022
+COVID-19 Pension
+Education
+Fund
+(Unfunded) (Unfunded)
+in Million
+Surplus fund lying uninvested
+Insurer managed funds (Funded with LIC, break-up not
+available)
+Bonds and securities
+(70.7)
+76.4
+Central government securities
+Thereafter
+year
+5th
+year
+4th
+year
+3rd
+2nd year
+1st year
+The major categories of plan assets are as under:
+94.8
+5.5
+557.0
+(266.8)
+362.9
+100.7
+299.0
+348.5
+289.3
+(317.0)
+(263.6)
+(56.9)
+(40.9)
+63.0
+45.1
+5.20
+154.20
+955.40
+93.6
+812.0
+6.5
+96.2
+709.4
+92.5
+Delta effect of +1% change in discount rate
+Delta effect of -1% change in discount rate
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee turnover
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation for next
+Impact on defined benefit obligation
+The sensitivity analysis have been determined based on
+method that extrapolates the impact on defined benefit
+obligation as a reasonable change in key assumptions
+occurring at the end of the reporting period.
+Sensitivity analysis:
+Mortality
+(2012-14)
+(2012-14)
+Mortality
+Assured Lives Assured Lives
+Assured Lives Assured Lives Assured Lives
+Indian
+N.A
+9.00%
+N.A.
+Indian
+N.A.
+Indian
+N.A.
+Indian
+N.A.
+Indian
+Interest rate guarantee
+Mortality
+In range of
+7.00% to
+N.A.
+In range of
+7% to 10%
+N.A.
+N.A.
+Expected rate of salary increase
+7.05%
+6.25%
+Mortality
+In range of
+6.75% to
+(2012-14)
+Morality
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+273
+Scaling up Specialty. Leading with Care.
+58 to 60
+N.A.
+58 to 60
+N.A.
+N.A.
+Retirement age (years)
+12.40% to
+13.45%
+13.45%
+12.40% to
+In range of
+N.A.
+In range of
+N.A.
+N.A.
+Employee turnover
+(2012-14)
+Mortality
+(2012-14)
+Current service cost
+4,065.1
+1,009.7
+Year ended
+Year ended
+March 31, 2022
+* in Million
+Balance at end of the year
+Foreign currency translation difference
+Payment towards lease liabilities
+Interest expense on lease liability
+Taken over on acquisition
+Deletions
+March 31, 2021
+Additions
+(b) The following is the movement of lease liabilities
+(a) The Company has recognised a lease liability measured at the present value of the remaining lease payments, and
+right-of-use (ROU) asset at an amount equal to lease liability (adjusted for any related prepayments). Management
+has exercised judgement in determining whether extension and termination options are reasonably certain to
+be exercised. Expenses related to short term leases and low-value assets for the year ended March 31, 2022 is
+237.7 Million (March 31, 2021 : 198.0 Million).
+NOTE: 54 LEASES
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+269
+Scaling up Specialty. Leading with Care.
+The performance obligation is satisfied when control of the goods or services are transferred to the customers based on
+the contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
+Balance as at beginning of the year
+3,450.9
+3,440.3
+1,168.7
+(d) The Company has given certain premises under operating lease or leave and license agreements. These are generally
+not non-cancellable and periods range between 11 months to 4 years under leave and license/lease and are renewable
+by mutual consent on mutually agreeable terms. The Company has received refundable interest free security deposits
+where applicable in accordance with the agreed terms.
+1,593.4
+1,446.3
+2,099.8
+2,220.2
+1,134.2
+1,225.7
+Later than one year and not later than five years
+Later than five years
+Less than one year
+March 31, 2021
+* in Million
+As at
+As at
+March 31, 2022
+(c) The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted basis:
+(27.4)
+3,450.9
+(1,177.9)
+184.8
+158.7
+(1,286.5)
+51.4
+3,596.1
+280.2
+(371.0)
+(227.3)
+1,402.1
+Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
+revenue received from customer for which performance obligation has not yet been completed.
+9,328.4
+670.4
+90,614.0
+The Company has recorded an additional amount of 667.4 Million (March 31, 2021 : 1,520.1 Million) as deferred
+revenue pursuant to the requirements of Ind AS 115. Revenue of ₹ 1,661.5 Million (March 31, 2021 : 1,740.5 Million) has
+been recognised as Revenue from contract with customer pursuant to completion of performance obligation in respect of
+the above contracts.
+NOTE: 53 REVENUE FROM CONTRACTS WITH CUSTOMERS
+No customer contributed more than 10.0% of total revenues for the year ended March 31, 2022 and March 31, 2021.
+In view of the interwoven / intermix nature of business and manufacturing facility, other segmental information is
+not ascertainable.
+173,689.1
+174,859.3
+18,115.7
+20,885.7
+11,006.3
+10,620.8
+13,474.9
+13,454.3
+131,092.2
+129,898.5
+March 31, 2021
+Year ended
+March 31, 2022
+Rest of the world
+Emerging markets
+United States of America
+India
+* in Million
+Year ended
+The reconciling items of revenue recognised in the consolidated statement of profit and loss with the contracted price are
+as follows:
+NOTE: 55 EMPLOYEE BENEFITS
+Revenue as per contracted price, net of returns
+Provision for sales return
+As at
+March 31, 2021
+* in Million
+8,117.6
+105,928.9
+382.3
+As at
+March 31, 2022
+332,330.8
+384,264.2
+(279,639.6)
+(285,369.2)
+(270,421.7)
+(275,075.2)
+(9,217.9)
+(10,294.0)
+* in Million
+Year ended
+March 31, 2021
+611,970.4
+Year ended
+March 31, 2022
+669,633.4
+Contract liabilities
+Contract assets
+Trade receivables
+Contract balances
+Revenue from contracts with customers
+Chargebacks, Rebates, discounts and others
+Less:
+Defined contribution plan
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Corporation
+(ESIC) and other Funds which covers all regular employees of the parent company and its Indian subsidiaries. While the
+employees and the parent company and its Indian subsidiaries make predetermined contributions to the Provident Fund
+and ESIC, contribution to the Family Pension Fund and other statutory funds are made only by the parent company and
+its Indian subsidiaries. The contributions are normally based on a certain percentage of the employee's salary. Amount
+recognised as expense in respect of these defined contribution plans, aggregate to 1,239.0 Million (March 31, 2021 :
+1,120.9 Million).
+270
+92.5
+Expense charged to the consolidated
+(225.4)
+(256.0)
+Expected return on plan assets
+264.2
+65.6
+287.8
+70.1
+Interest cost
+441.2
+483.3
+92.5
+Current service cost
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+Education
+(Unfunded)
+COVID-19
+Year ended
+March 31, 2021
+70.1
+Year ended
+March 31, 2022
+515.1
+480.0
+4,607.1
+1,087.6
+Obligations as at the beginning of the year
+Reconciliation of defined benefit obligations
+comprehensive income
+Expense/(income) charged to other
+7.7
+74.2
+354.1
+(23.4)
+19.7
+(45.3)
+(12.0)
+74.2
+399.4
+(23.4)
+Actuarial loss/ (gain) on plan assets
+Actuarial loss (gain) on defined benefit
+obligation
+recognised in other comprehensive income
+Remeasurement of defined benefit obligation
+statement of profit and loss
+65.6
+(323.2)
+* in Million
+Expense recognised in the consolidated
+Defined benefit plan
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+0.9
+1.2
+32.0
+43.7
+65.3
+1,022.7
+1,124.3
+69.8
+March 31, 2021
+Year ended
+* in Million
+Year ended
+March 31, 2022
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+Contribution to Superannuation Fund
+Contribution to Provident Fund and Family Pension Fund
+a)
+statement of profit and loss (Refer note 34)
+b)
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund
+Scheme. It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to
+specific benefit at the time of retirement or termination of the employment on completion of five years or death
+while in employment. The level of benefit provided depends on the member's length of service and salary at the
+time of retirement/termination age. Provision for gratuity is based on actuarial valuation done by an independent
+actuary as at the year end. Each year, the parent company and its Indian subsidiaries review the level of funding
+in gratuity fund. The parent company and its Indian subsidiaries decides its contribution based on the results
+of its annual review. The parent company and its Indian subsidiaries aim to keep annual contributions relatively
+stable at a level such that the fund assets meets the requirements of gratuity payments in short to medium term.
+272
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+271
+Scaling up Specialty. Leading with Care.
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially
+determined as at the year end using the 'Projected Unit Credit' method. Gains and losses on changes in actuarial
+assumptions relating to defined benefit obligation are recognised in other comprehensive income whereas gains
+and losses in respect of other long term employee benefit plans are recognised in the consolidated statement of
+profit and loss.
+Actuarial valuation for compensated absences is done as at the year end and the provision is made as per the
+parent company and its Indian subsidiaries rules with corresponding charge to the consolidated statement of
+profit and loss amounting to ₹ 848.8 Million (March 31, 2021: * 632.6 Million) and it covers all regular employees.
+Major drivers in actuarial assumptions, typically, are years of service and employee compensation.
+Other long term benefit plan
+iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future
+salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's
+liability."
+iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best
+estimate of the mortality of plan participants both during and after their employment. An increase in the life
+expectancy of the plan participants will increase the plan's liability.
+Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be
+partially offset by an increase in the return on the plan's debt investments.
+Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate
+determined by reference to the market yields on government bonds denominated in Indian Rupees. If
+the actual return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially
+mitigated by investment in LIC managed fund.
+ii)
+i)
+These plans typically expose the parent company and its Indian subsidiaries to actuarial risks such as: investment
+risk, interest rate risk, longevity risk and salary risk.
+Risks
+The parent company and its Indian subsidiaries has undertaken an obligation to provide financial support towards
+education expenses of the children of those employees who have unfortunately lost their lives due to the
+COVID-19 pandemic.
+COVID-19 Employee children education support
+The parent company have an obligation towards pension, a defined benefit retirement plan, with respect to
+certain employees, who had already retired before March 01, 2013, will continue to receive the pension as per
+the pension plan.
+Pension fund
+Gratuity
+* in Million
+Corporate Overview
+3,099.8
+Sun Pharmaceutical Medicare Limited
+10
+(39.2)
+(0.1)
+(39.2)
+(0.1)
+(37.0)
+(0.0)
+Realstone Infra Limited
+9
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+5.2
+0.0
+Universal Enterprises Private Limited
+8
+Trading Company Private Limited)
+Limited (Formerly known as Softdeal
+(0.1)
+(0.6)
+(0.0)
+(2,748.8)
+(872.0)
+(0.0)
+1,325.1
+4.6
+2,000.1
+0.4
+Sun Pharma Distributors Limited
+12
+(180.8)
+(0.6)
+0.1
+(0.0)
+(180.9)
+(0.6)
+1,097.4
+0.2
+Zenotech Laboratories Limited
+11
+(867.3)
+(3.1)
+4.7
+(0.5)
+(3.0)
+(0.1)
+(0.0)
+0.2
+0.2
+0.0
+3.2
+0.0
+Faststone Mercantile Company Private
+3
+18,628.0
+66.2
+12.7
+(1.4)
+18,615.3
+64.1
+223,846.3
+45.2
+Sun Pharma Laboratories Limited
+2
+(1.7)
+(0.0)
+(1.7)
+(0.0)
+(1.7)
+0.0
+0.2
+Limited
+4567
+0.0
+1.1
+0.0
+(0.1)
+(0.0)
+11.0
+0.0
+Softdeal Pharmaceuticals Private
+(0.1)
+(0.0)
+0.2
+(0.3)
+Skisen Labs Private Limited
+0.2
+0.0
+2.3
+0.0
+1.1
+0.0
+2,923.5
+0.6
+Neetnav Real Estate Private Limited
+Realstone Multitrade Private Limited
+(0.0)
+(0.0)
+4.7
+(0.0)
+(573.6)
+(0.1)
+Ranbaxy Nigeria Limited
+10
+450.2
+1.6
+450.2
+1.6
+1,430.3
+0.3
+Ranbaxy (Malaysia) SDN. BHD.
+9
+as Ranbaxy Pharmacie Generiques)
+55
+5.5
+0.0
+5.5
+0.0
+(0.6) (2,987.7)
+Sun Pharma France (Formerly known
+8
+(0.8)
+Sun Pharma De Venezuela, C.A.
+(222.2)
+(222.2)
+0.1
+Sun Pharmaceutical Industries
+13
+235.0
+0.8
+235.0
+0.8
+50,930.2
+10.3
+Alkaloida Chemical Company Zrt.
+12
+2,659.8
+9.5
+2,243.1
+(247.9)
+416.7
+1.4
+66,243.3
+13.4
+Sun Pharma (Netherlands) B.V
+11
+(0.8)
+7
+3.5
+0.0
+(0.7)
+(206.7)
+(0.7)
+(2,530.2)
+(0.5)
+Sun Farmaceutica Do Brasil Ltda.
+231
+325.7
+1.2
+325.7
+1.1
+2,075.1
+0.4
+Sun Pharmaceutical (Bangladesh)
+Limited
+1
+Foreign
+13 Caraco Pharmaceuticals Private
+Limited
+(0.1)
+(0.1)
+(0.0)
+(0.2)
+(206.7)
+Sun Pharma De Mexico S.A. DE C.V.
+0.2
+846.5
+3.5
+0.0
+(220.8)
+(0.0)
+OOO "Sun Pharmaceutical Industries"
+Limited
+6
+(16.0)
+(0.1)
+(16.0)
+(0.1)
+1,325.3
+(168.3)
+Sun Pharmaceutical Peru S.A.C.
+5
+0.2
+0.0
+SPIL De Mexico S.A. DE C.V.
+4
+247.1
+0.9
+247.1
+0.9
+(0.0)
+498.1
+Green Eco Development Centre
+Limited
+Indian
+0.3
+1,814.2
+0.4
+Sun Pharma UK Limited (Formerly
+40
+40
+28.0
+0.1
+28.0
+0.1
+565.2
+0.1
+Sun Pharma Laboratorios,S.L.U.
+(Formerly known as Laboratorios
+Ranbaxy, S.L.U.)
+39
+258.3
+0.7
+258.3
+0.8
+2,509.0
+0.5
+Ranbaxy Pharmaceuticals (Pty) Ltd.
+99.1
+38
+known as Ranbaxy (U.K.) Limited)
+Sun Pharma Holdings UK Limited
+Ranbaxy (Thailand) Co., Ltd.
+43
+its Associate)
+(Consolidated with its Subsidiaries and
+(43.2) (16,212.4) #
+(269.7)
+(5.6)
+(48.7) (15,942.7) #
+57,569.1
+11.3
+Sun Pharmaceutical Holding USA Inc
+42
+(Formerly known as Ranbaxy Holdings
+(U.K.) Limited)
+(0.7)
+(0.0)
+99.1
+0.3
+(0.7)
+(0.0)
+3,065.9
+0.6
+41
+(Consolidated with its Subsidiary)
+47.5
+0.1
+10,163.6
+2.0
+Terapia SA
+34
+25.6
+0.1
+25.6
+0.1
+265.5
+0.1
+Ranbaxy (Poland) SP. Z O.O.
+33
+(44.7)
+(0.1)
+(44.7)
+(0.1)
+(168.2)
+(0.0)
+Sun Pharmaceutical Industries S.A.C.
+32
+as Ranbaxy Italia S.P.A.)
+10.1
+3,313.8
+8.8
+3,313.8
+47.5
+0.1
+1,096.0
+0.2
+Ranbaxy South Africa (Pty) Ltd.
+37
+164.0
+0.4
+164.0
+0.5
+0.0
+942.6
+JSC Biosintez
+36
+581.0
+1.5
+581.0
+1.8
+1,245.6
+0.2
+AO Ranbaxy
+35
+0.2
+1
+249.7
+16.6
+Name of the entity
+S.
+Share in total comprehensive
+income (TCI)
+Share in other
+comprehensive income (OCI)
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint ventures as per
+Schedule III of Companies Act, 2013:
+(Annexure 'A')
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+285
+Scaling up Specialty. Leading with Care.
+Note: The above amounts/percentage of net assets and net profit or (loss) in respect of the parent company, its subsidiaries, associates and joint ventures are determined
+based on the amounts of the respective entities included in consolidated financial statements before inter-company eliminations / consolidation adjustments.
+# Includes share of loss and share of TCI, from its associate of 219.0 Million.
+37,521.8
+100.0
+4,794.5
+100.0
+32,727.3
+510,661.1
+No.
+100.0
+2020-21
+2020-21
+Subsidiaries
+8,418.8
+29.9
+(5.2)
+0.6
+8,424.0
+29.0
+269,384.7
+54.4
+Parent Entity - Sun Pharmaceutical
+Industries Limited
+in Million
+As % of
+consolidated
+TCI
+OCI
+in Million
+As % of
+consolidated
+* in Million
+As % of
+consolidated
+profit or (loss)
+net assets
+* in Million
+As % of
+consolidated
+2020-21
+2020-21
+Total
+22,405.2
+59.8
+Sun Pharma (Shanghai) Co., Ltd
+46
+LLC
+124.6
+0.3
+124.6
+0.4
+461.1
+0.1
+"Ranbaxy Pharmaceuticals Ukraine"
+45
+35.2
+0.1
+35.2
+0.1
+165.1
+0.0
+Sun Pharmaceuticals Morocco LLC
+44
+16.6
+0.0
+0.0
+5.7
+(0.0)
+(5.9)
+9,130.3
+190.5
+(1,943.1)
+(5.2)
+(777.6)
+(16.2)
+(3.6) (1,165.5)
+40.6 13,274.9
+(112.2) (572,915.4)
+Intercompany Elimination and Consolidation
+Adjustments
+30,548.9
+0.1
+6.0
+(35.4)
+(0.1)
+(35.4)
+(0.1)
+5.0
+0.0
+Sun Pharmaceuticals (EZ) Limited
+47
+(5.9)
+(0.0)
+Non controlling interest in all subsidiaries
+(100.6)
+(1.5)
+(1.6)
+81.9
+0.3
+1,740.7
+0.4
+Sun Pharma UK Limited (Formerly
+43
+Ranbaxy, S.L.U.)
+(Formerly known as Laboratorios
+26.5
+0.1
+26.5
+0.1
+549.9
+0.1
+Sun Pharma Laboratorios, S.L.U.
+42
+133.7
+0.5
+133.7
+0.5
+2,105.4
+0.3
+0.4
+81.9
+44
+its Associate)
+(Consolidated with its Subsidiaries and
+1,827.8#
+6.5
+203.9
+(22.5)
+1,623.9#
+5.6
+71,330.1
+14.4
+Sun Pharmaceutical Holding USA Inc
+45
+(U.K.) Limited)
+(Formerly known as Ranbaxy Holdings
+(0.7)
+(0.0)
+(0.7)
+(0.0)
+3,108.2
+0.6
+Sun Pharma Holdings UK Limited
+known as Ranbaxy (U.K.) Limited)
+Ranbaxy Pharmaceuticals (Pty) Ltd.
+41
+(Consolidated with its Subsidiary)
+10.7
+8,870.1
+1.8
+Terapia SA
+37
+22.0
+0.1
+22.0
+0.1
+245.4
+0.0
+Ranbaxy (Poland) SP. Z O.O.
+36
+30.7
+0.1
+30.7
+0.1
+(124.5)
+(0.0)
+Sun Pharmaceutical Industries S.A.C.
+35
+11.0
+3,099.8
+38
+AO Ranbaxy
+129.6
+0.5
+129.6
+0.4
+1,016.3
+0.2
+Ranbaxy South Africa (Pty) Ltd.
+40
+314.3
+1.1
+46
+314.3
+824.6
+0.2
+JSC Biosintez
+39
+(396.5)
+(1.4)
+(396.5)
+(1.4)
+737.8
+0.1
+1.1
+as Ranbaxy Italia S.P.A.)
+Ranbaxy (Thailand) Co., Ltd.
+239.5
+Alfa Infraprop Private Limited
+Airamatrix Private Limited
+control or significant influence)
+c Others (Entities in which the KMP and relatives of KMP have
+Vidhi Shanghvi
+Aalok Shanghvi
+b Relatives of Key Management Personnel
+Sudhir Vrundavandas Valia
+Sailesh Trambaklal Desai
+Kalyanasundaram lyer Natesan Subramanian
+Israel Makov
+Dilip Shantilal Shanghvi
+a Key Management Personnel (KMP)
+Names of related parties where there are transactions and description of relationships
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+(Annexure 'B')
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+287
+Scaling up Specialty. Leading with Care.
+Fortune Integrated Assets Finance Limited
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the parent company, its subsidiaries, associates and joint ventures are determined
+based on the amounts of the respective entities included in consolidated financial statements before inter-company eliminations / consolidation adjustments.
+288
+Wholetime Director
+Kism Textiles Private Limited
+Makov Associates Limited
+PV Power Technologies Private Limited
+Shanghvi Finance Private Limited
+Shantilal Shanghvi Foundation
+Sidmak Laboratories (India) Private Limited
+Sun Petrochemicals Private Limited
+Sun Pharma Advanced Research Company Limited.
+United Medisales Private Limited
+d Joint Venture
+Artes Biotechnology GmbH
+e Associates
+Medinstill LLC
+Medinstill Development LLC
+Tarsier Pharma Ltd (Formerly known as Tarsius Pharma Ltd.)
+Intact Solution LLC
+Dr. Py Institute LLC
+f Unconsolidated Subsidiary
+Foundation for Disease Elimination and Control of India
+Managing Director
+Chairman and Non-Executive Director (Non- Independent)
+Wholetime Director
+Non-Executive Director and Non-Independent Director
+# Includes share of loss and share of TCI, from its associate of 144.2 Million
+100.0 28,133.4
+(904.8)
+LLC
+71.3
+0.3
+112.7
+0.4
+23.2
+0.1
+71.3
+0.2
+352.7
+0.1
+"Ranbaxy Pharmaceuticals Ukraine"
+48
+112.7
+0.4
+130.6
+0.0
+Sun Pharmaceuticals Morocco LLC
+47
+23.2
+0.1
+49
+Sun Pharma (Shanghai) Co.,Ltd
+50
+Sun Pharmaceuticals (EZ) Limited
+100.0
+29,038.2
+100.0
+494,798.3
+100.0
+Total
+6,870.2
+12,058.3
+42.9
+24.4
+555.5
+(4,933.2)
+0.0
+(61.4)
+545.2
+30,170.5
+(120.8) (597,583.6)
+Intercompany Elimination and Consolidation
+Adjustments
+6.1
+Non controlling interest in all subsidiaries
+(11.8)
+(0.0)
+(11.8)
+(0.0)
+39.9
+0.0
+21.7 6,314.7
+58.5 16,991.5
+(446.9)
+78.1
+78.1
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint ventures as per
+Schedule III of Companies Act, 2013:
+(Annexure 'A')
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+286
+24.9
+0.1
+24.9
+0.1
+2,614.6
+0.5
+Sun Pharma Japan Ltd. (Consolidated
+with its Subsidiary)
+21
+0.3
+0.0
+0.3
+0.0
+Net Assets, i.e., total assets
+minus total liabilities
+Sun Pharmaceuticals Korea Ltd.
+Share in profit or (loss)
+S.
+(412.4)
+126,079.4
+25.5
+Taro Pharmaceutical Industries
+23
+(0.1)
+Sun Laboratories FZE
+22
+OCI
+in Million
+As % of
+consolidated
+in Million
+As % of
+consolidated
+profit or (loss)
+net assets
+in Million
+consolidated
+2020-21
+2020-21
+2020-21
+As % of
+No.
+Name of the entity
+Share in other
+comprehensive income (OCI)
+20
+55.2
+0.2
+Sun Pharmaceuticals Germany GmbH
+16
+(Europe) B.V.
+41.0
+0.1
+41.0
+0.1
+83.8
+0.0
+Sun Pharmaceutical Industries
+15
+(6.0)
+(0.0)
+(6.0)
+(0.0)
+5.0
+0.0
+Aditya Acquisition Company Ltd.
+14
+(Australia) Pty Limited
+(446.9)
+(0.0)
+(105.2)
+0.1
+40.4
+55.2
+0.2
+(501.1)
+(0.1)
+Sun Pharma Philippines, Inc.
+19
+3.3
+0.0
+3.3
+0.0
+1.0
+4.6
+Sun Pharmaceuticals SA (Pty) Ltd.
+18
+(2.4)
+(0.0)
+(2.4)
+(0.0)
+Sun Pharmaceuticals France
+17
+40.4
+0.1
+0.0
+0.3
+(98.6)
+in Million
+(22.6)
+(0.0)
+Rexcel Egypt LLC
+31
+(72.8)
+(0.3)
+(72.8)
+(0.3)
+442.9
+0.1
+Sun Pharma Egypt Ltd LLC
+30
+Canada Inc.)
+known as Ranbaxy Pharmaceuticals
+103.5
+0.4
+103.5
+0.4
+325.2
+0.1
+Sun Pharma Canada Inc. (Formerly
+(0.0)
+29
+(0.3)
+(0.3)
+0.3
+107.2
+0.0
+Sun Pharma Italia srl (Formerly known
+34
+(1.2)
+(0.0)
+(1.2)
+(0.0)
+596.6
+0.1
+Ranbaxy Ireland Limited
+33
+65.2
+0.2
+65.2
+0.2
+1,280.6
+0.3
+Basics GmbH
+32
+(0.0)
+0.6
+0.0
+0.6
+25
+(0.6)
+(0.0)
+(0.6)
+(0.0)
+8.6
+0.0
+Sun Pharma Switzerland Ltd.
+222222
+28
+24
+Subsidiaries)
+Ltd. (TARO) (Consolidated with its
+As % of
+consolidated
+TCI
+2020-21
+Share in total comprehensive
+income (TCI)
+282.7
+(27,613.2)
+(98.2)
+1,013.4
+(112.0)
+1.0
+Sun Pharma Holdings
+46.4
+229,551.6
+(0.1)
+0.0
+(1,215.8)
+(0.2)
+Ranbaxy Farmaceutica Ltda.
+432.3
+1.5
+432.3
+1.5
+283.8
+0.1
+282.7
+(28,626.6)
+Sun Pharma ANZ Pty Ltd
+0.1
+19.8
+0.1
+(110.9)
+(0.0)
+Sun Pharma East Africa Limited
+26
+(29.6)
+(0.1)
+(29.6)
+19.8
+(0.3)
+100.0
+(0.3)
+Projects in progress
+Others
+Projects in progress
+Others
+Overdue intangible asset under development
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+281
+6,303.1
+6,303.1
+As at
+March 31, 2021
+* in Million
+4,175.0
+3 years
+4,175.0
+More than
+4,892.9
+4,892.9
+March 31, 2022
+2,517.9
+2,517.9
+As at
+in Million
+1,493.6
+208.3
+17.6
+* in Million
+1,126.0
+141.7
+To be completed in
+1-2 years
+151.8
+151.8
+2.0
+149.8
+2.0
+149.8
+As at
+March 31, 2021
+3 years
+2-3 years
+1-2 years
+More than
+Less than
+1 year
+To be completed in
+* in Million
+32.8
+32.8
+32.8
+32.8
+As at
+March 31, 2022
+More than
+3 years
+2-3 years
+Less than
+1 year
+As at
+March 31, 2021
+* in Million
+165.9
+1,283.9
+17.0
+124.7
+252.8
+873.2
+More than
+3 years
+2-3 years
+1-2 years
+Less than
+1 year
+To be completed in
+165.9
+166.1
+1,117.8
+1.5
+0.2
+971.4
+144.9
+More than
+3 years
+2-3 years
+1-2 years
+Less than
+1 year
+To be completed in
+208.3
+9,365.2
+368.8
+16.2
+1.4
+1,014.1
+271.2
+1.5
+(100.6)
+971.6
+As at
+March 31, 2022
+* in Million
+248.0
+248.0
+2-3 years
+78.9
+78.9
+More than
+3 years
+NOTE : 76 USE OF ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
+The preparation of the Group's financial statements requires the management to make judgements, estimates and
+assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
+disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and
+underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
+in which the estimates are revised and in any future periods affected. In particular, information about significant areas of
+estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the
+amounts recognised in the consolidated financial statements is included in the following notes:
+2-3 years
+142.2
+1,737.9
+1,737.9
+1 year
+1-2 years
+Less than
+1-2 years
+1,673.4
+1,673.4
+622.7
+622.7
+1 year
+Less than
+208.3
+208.3
+142.2
+256.7
+a)
+b)
+ANOOP DESHPANDE
+Company Secretary
+Scaling up Specialty. Leading with Care.
+Managing Director
+(DIN: 00005588)
+DILIP S. SHANGHVI
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+Mumbai, May 30, 2022
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No. : 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+Figures for previous year have been regrouped / reclassified wherever considered necessary.
+NOTE: 79
+From the date of acquisition, it has contributed revenue of 689.4 Million and loss before tax of 325.5 Million to the
+Group. If the business combinations had taken place at the beginning of the year, the revenue and profit before exceptional
+item and tax of the group would have been 395,476.9 Million and ₹ 90,542.8 Million respectively.
+7,395.7
+344.8
+7,050.9
+2,189.7
+215.8
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+264.0
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 30, 2022
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+48.1
+net assets
+in Million
+As % of
+consolidated
+2021-22
+2021-22
+2021-22
+2021-22
+Share in total comprehensive
+income (TCI)
+Share in other
+comprehensive income (OCI)
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+Industries Limited
+Parent Entity - Sun Pharmaceutical
+No.
+Name of the entity
+S.
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint ventures as per
+Schedule III of Companies Act, 2013:
+(Annexure 'A')
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+283
+79.6
+64.4
+4.3
+51.4
+551.8
+2,060.9
+* in Million
+Trade Receivable
+Cash and cash equivalents
+Assets
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+282
+As per Ind AS 103 on Business Combination, purchase consideration has been allocated on a provisional basis, pending
+final determination of the fair value of the acquired assets and liabilities. The resulting differential has been accounted
+as Goodwill.
+During the year ended March 31, 2022 our subsidiary company, Taro Pharmaceutical Industries Ltd., has acquired all of
+the outstanding capital stock of Proactiv Company Holdings, Inc. (formerly known as Galderma Holdings, Inc.), Proactiv
+YK; The Proactiv Company KK; Alchemee LLC; The Proactiv Company Corporation; and other assets of The Proactiv
+Company Sarl. Hence the figures for the year ended March 31, 2022 are not comparable to the previous year presented.
+The business acquisition was completed by entering into a share purchase agreement for a cash consideration of
+7,395.7 Million.
+NOTE : 78 BUSINESS COMBINATIONS
+The Company does not have any transactions and balances with companies which are struck off except shares held by 8
+shareholders holding 7,653 shares (March 31, 2021 - 7,833 shares) having face value of 1 per share.
+NOTE : 77 RELATIONSHIP WITH STRUCK OFF COMPANIES
+Impairment of goodwill and intangible assets (Refer note 2 (g), (h) and 47)
+c)
+Revenue (Refer note 2 (o))
+Other current assets
+Inventory
+2,090.7
+Property, plant and equipment and other intangible assets
+74.9
+201.7
+1,285.0
+Total purchase price
+Goodwill
+Total identifiable assets at fair value
+Net worth
+Total liabilities
+Long term lease liability
+Long term provision
+Litigations (Refer note 2 (n) and note 39)
+Current tax liability
+Other current liability
+Short term provision
+Other current financial liability
+Trade Payable
+Liabilities
+9,240.6
+Total Assets
+454.4
+Deferred tax assets
+4,031.4
+Short term lease liability
+245,879.5
+927.1
+208.3
+Profit after tax
+Total expenses excluding exceptional item
+Total income
+Consolidated statement of profit and loss of TARO Group
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+279
+(49,470.3)
+(32,758.5)
+(342.2)
+(679.7)
+70,100.7
+105,791.2
+65,502.2
+99,366.4
+Scaling up Specialty. Leading with Care.
+Current liabilities
+Non-current liabilities
+Current assets
+Non-current assets
+Consolidated balance sheet of TARO Group
+As at
+March 31, 2021
+Total comprehensive income for the year
+As at
+March 31, 2022
+Consolidated cash flows information of TARO Group
+Net cash generated from/ (used in) operating activities
+Net cash generated from/ (used in) investing activities
+Net cash used in financing activities
+* in Million
+Pursuant to the Scheme of Amalgamation and Merger of Sun Pharma Global FZE, with the Company, as approved by the
+National Company Law Tribunal on August 31, 2021, Sun Pharma Global FZE, merged with the Company w.e.f. January 01,
+2020. The effect of this merger including the tax impact was given in the financial statements of the year ended March 31,
+2022 in accordance with Ind AS 103 - Business Combinations.
+NOTE : 72
+(1,781.5)
+(1,857.5)
+4,973.3
+(12,707.4)
+3,822.8
+(12,261.2)
+Year ended
+March 31, 2021
+Year ended
+March 31, 2022
+* in Million
+(28,626.6)
+(31,343.7)
+7,208.3
+3,944.9
+31,205.9
+33,749.0
+43,474.1
+43,893.9
+March 31, 2021
+Year ended
+Year ended
+March 31, 2022
+For repurchase of ordinary shares done by Taro refer note 56.
+in Million
+The summarised consolidated financial information of TARO Group before inter-company eliminations:
+30,170.5
+Held by non-
+controlling interest
+Beneficial ownership
+Israel
+United States of
+America
+and its subsidiaries (TARO Group)
+Taro Pharmaceutical Industries Ltd.
+Country of
+incorporation
+Principal place of
+business
+Name of Subsidiary
+NOTE: 71 DISCLOSURE OF A SUBSIDIARY THAT HAS NON-CONTROLLING INTEREST THAT IS MATERIAL TO
+THE GROUP
+As part of the ongoing simplification of the group structure in India, the Board of Directors of the Company at its
+meeting held on May 30, 2022, approved the Scheme of Amalgamation for the merger of Wholly-owned Subsidiaries,
+Sun Pharmaceutical Medicare Limited, Green Eco Development Centre Limited, Faststone Mercantile Company Private
+Limited, Realstone Multitrade Private Limited and Skisen Labs Private Limited (collectively "Transferor Companies"), with
+Sun Pharmaceutical Industries Limited ("Transferee Company") to be effective from such date as may be decided under
+the authorization by the Board of Directors of the Transferor Companies and the Board of Directors of the Transferee
+Company and/or such other date as may be approved by the National Company Law Tribunal pursuant to the provisions
+of Sections 230 to 232 of Companies Act, 2013 and other relevant provisions of the Companies Act, 2013 and rules
+framed thereunder.
+NOTE: 70
+The Parent Company holds 24.91% in the capital of Shimal Research Laboratories Limited. However, as the Parent
+Company does not have any 'Significant Influence' in Shimal Research Laboratories Limited, as is required under Ind
+AS 28 - "Investments in Associates and Joint Ventures", the said investment in Shimal Research Laboratories Limited
+has not been consolidated as an "Associate Entity".
+Sun Pharma Netherlands B.V., a subsidiary of the parent company holds 21.53% in the capital of Enceladus
+Pharmaceutical B.V. However, as Sun Pharma Netherlands B.V. does not have any 'Significant Influence' in Enceladus
+Pharmaceutical B.V., as is required under Ind AS 28 - "Investments in Associates and Joint Ventures", the said
+investment in Enceladus Pharmaceutical B.V. has not been consolidated as an "Associate Entity".
+b)
+a)
+NOTE: 69
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+As at
+March 31, 2022
+As at
+March 31, 2021
+21.52%
+22.22%
+30,548.9
+(6,314.7)
+1,165.5
+Total
+28,014.9
+2,155.6
+28,283.8
+2,265.1
+Year ended
+March 31, 2021
+Year ended
+March 31, 2022
+Year ended
+March 31, 2021
+(6,542.8)
+228.1
+320.2
+NOTE: 73
+Individually immaterial subsidiaries with non-controlling
+interests
+TARO Group
+Year ended
+March 31, 2022
+Accumulated non-controlling interests
+* in Million
+non-controlling interests
+Profit/(loss) allocated to
+Name of Subsidiary
+14.82%
+14.34%
+Voting power
+845.3
+7,812.6
+During the year, the Company has acquired additional 11.28 % stake in Zenotech Laboratories Limited (Zenotech), a
+subsidiary of the Company, from Daiichi Sankyo Company Ltd. for a total consideration of 53.2 Million pursuant to a
+share purchase agreement entered during the year. Post this acquisition, the Company's shareholding in Zenotech has
+increased from 57.56% to 68.84%.
+Trade Payable Ageing
+More than
+3 years
+2-3 years
+1-2 years
+Less than
+1 year
+* in Million
+Scaling up Specialty. Leading with Care.
+Projects in progress
+Projects in progress
+Ageing of intangible asset under development
+Projects temporarily suspended
+Others
+Bulk Drug
+Formulation
+Projects in progress
+Overdue Capital work-in-progress
+Projects temporarily suspended
+Others
+Bulk Drug
+Formulation
+Projects in progress
+As at
+Overdue Capital work-in-progress
+March 31, 2022
+4,870.7
+9,156.9
+160.5
+256.7
+927.1
+7,812.6
+As at
+March 31, 2021
+3 years
+2-3 years
+1-2 years
+More than
+Less than
+1 year
+* in Million
+165.9
+7,975.1
+256.3
+314.4
+4,870.7
+2,533.7
+165.9
+7,809.2
+90.4
+314.4
+2,533.7
+Projects temporarily suspended
+Projects in progress
+Projects temporarily suspended
+28,435.2
+Not due
+* in Million
+127.5
+44,793.4
+44,665.9
+390.2
+8.6
+398.8
+163.2
+2.4
+165.6
+231.6
+7.5
+239.1
+As at
+March 31, 2022
+in Million
+More than
+3 years
+2-3 years
+1-2 years
+Less than
+1 year
+7,812.9
+109.0
+7,921.9
+36,068.0
+36,068.0
+Not due
+280
+Outstanding dues
+Disputed dues
+Disputed dues
+Outstanding dues
+Less than
+1 year
+10,011.5
+More than
+As at
+1-2 years
+Projects in progress
+Ageing of Capital work-in-progress
+Details of Capital Work-in-progress and Intangible Assets under development:
+NOTE: 75
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+NOTE: 74
+298.7
+39,736.6
+288.1
+16.6
+304.7
+36.6
+341.3
+474.6
+304.7
+398.4
+76.2
+169.3
+10,180.8
+28,435.2
+March 31, 2021
+3 years
+2-3 years
+39,437.9
+As % of
+consolidated
+profit or (loss)
+(3.1)
+144.9
+As % of
+consolidated
+0.5
+Sun Pharma Japan Ltd. (Consolidated
+with its Subsidiary)
+19
+(14.6)
+(0.0)
+(14.6)
+(0.0)
+(502.0)
+(0.1)
+Sun Pharma Philippines, Inc.
+18
+(0.2)
+(0.0)
+35.0
+0.1
+ידיו
+(0.2)
+(0.0)
+4.6
+0.0
+17 Sun Pharmaceuticals SA (Pty) Ltd.
+2,597.3
+35.0
+0.4
+0.3
+Name of the entity
+S.
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint ventures as per
+Schedule III of Companies Act, 2013:
+(Annexure 'A')
+FOR THE YEAR ENDED MARCH 31, 2022
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+284
+(1,575.5)
+(4.2)
+(310.9)
+(6.5)
+(1,264.6)
+(3.9)
+(0.4) (2,016.9)
+Sun Laboratories FZE
+20
+130.8
+130.8
+0.1
+(66.7)
+(0.0)
+Sun Pharmaceutical Industries
+13
+447.1
+1.2
+447.1
+1.4
+53,234.0
+10.4
+Alkaloida Chemical Company Zrt.
+12
+(1,326.7)
+(3.5)
+(723.8)
+(15.1)
+(602.9)
+(1.8)
+84,074.5
+16.5
+Sun Pharma (Netherlands) B.V
+11
+(444.8)
+(0.2)
+(905.3)
+(4.2)
+(1,365.2)
+Sun Pharmaceuticals Germany GmbH
+16
+(Europe) B.V.
+77.7
+0.2
+77.7
+0.2
+157.6
+0.0
+Sun Pharmaceutical Industries
+No.
+15
+(0.0)
+(6.2)
+(0.0)
+(0.9)
+(0.0)
+Aditya Acquisition Company Ltd.
+14
+(Australia) Pty Limited
+(1,365.2)
+(3.6)
+(6.2)
+(1.2)
+Net Assets, i.e., total assets
+minus total liabilities
+Share in other
+comprehensive income (OCI)
+0.1
+Sun Pharma Egypt Ltd LLC
+28
+Canada Inc.)
+26.6
+0.1
+26.6
+0.1
+365.1
+0.1
+27 Sun Pharma Canada Inc. (Formerly
+known as Ranbaxy Pharmaceuticals
+100.1
+0.3
+100.1
+0.3
+(1,394.1)
+(0.3)
+Ranbaxy Farmaceutica Ltda.
+26
+125.4
+0.3
+492.9
+* in Million
+(0.2)
+(0.2)
+4.1
+0.0
+Sun Pharma Italia srl (Formerly known
+31
+11.5
+0.0
+11.5
+0.0
+1,266.7
+0.2
+Basics GmbH
+30
+(1.2)
+(0.0)
+(1.2)
+(0.0)
+(21.3)
+(0.0)
+Rexcel Egypt LLC
+29
+(62.7)
+(62.7)
+0.4
+418.1
+0.1
+7.1
+(1,283.6)
+(26.8)
+3,944.9
+12.1
+131,430.4
+25.7
+in Million
+As % of
+consolidated
+TCI
+in Million
+As % of
+consolidated
+OCI
+in Million
+As % of
+consolidated
+profit or (loss)
+net assets
+* in Million
+As % of
+consolidated
+2021-22
+2021-22
+2021-22
+2021-22
+Share in total comprehensive
+income (TCI)
+2,661.3
+21
+Taro Pharmaceutical Industries
+Ltd. (TARO) (Consolidated with its
+Subsidiaries)
+222222
+Sun Pharma ANZ Pty Ltd
+44.8
+0.1
+44.8
+0.1
+(65.7)
+(0.0)
+Sun Pharma East Africa Limited
+(14.5)
+(0.0)
+Share in profit or (loss)
+(14.5)
+199,954.4
+39.2
+Sun Pharma Holdings
+(2.6)
+(0.0)
+(2.6)
+(0.0)
+6.5
+0.0
+Sun Pharma Switzerland Ltd.
+(0.0)
+(444.8)
+125.4
+(986.4)
+Trading Company Private Limited)
+Limited (Formerly known as Softdeal
+455.8
+1.2
+(0.6)
+(0.0)
+456.4
+1.4
+466.8
+0.1
+Softdeal Pharmaceutical Private
+7
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+(0.4)
+(0.0)
+Skisen Labs Private Limited
+6
+0.0
+8
+Universal Enterprises Private Limited
+0.0
+5.1
+(192.2)
+(0.5)
+(3.5)
+(0.1)
+(188.7)
+(0.6)
+(2,940.9)
+(0.6)
+Sun Pharmaceutical Medicare Limited
+10
+0.0
+(83.8)
+(83.8)
+(0.3)
+(120.9)
+(0.0)
+Realstone Infra Limited
+9
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+(0.2)
+11
+0.0
+2.3
+Sun Pharma Laboratories Limited
+2
+2.2
+0.0
+2.2
+0.0
+0.5
+0.0
+Green Eco Development Centre
+Limited
+1
+Indian
+Subsidiaries
+(1,916.1)
+(5.1)
+(916.2)
+(19.1)
+(999.9)
+in Million
+As % of
+consolidated
+TCI
+OCI
+in Million
+49.4
+252,372.3
+87.3
+(1.4)
+0.0
+Realstone Multitrade Private Limited
+5
+0.8
+0.0
+0.8
+0.0
+5,235.2
+1.0
+Neetnav Real Estate Private Limited
+0.0
+4
+0.0
+28,526.0
+76.0
+(52.3)
+(1.1)
+28,578.3
+0.0
+0.0
+3.2
+0.0
+Faststone Mercantile Company Private
+Limited
+0.0
+Zenotech Laboratories Limited
+3
+1,243.7
+Limited
+202.5
+0.5
+202.5
+0.6
+0.1
+0.0
+OOO "Sun Pharmaceutical Industries"
+6
+2.8
+0.0
+2.8
+0.0
+(174.4)
+(0.0)
+Sun Pharmaceutical Peru S.A.C.
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+SPIL De Mexico S.A. DE C.V.
+7
+4
+Sun Pharma De Venezuela, C.A.
+0.0
+0.2
+(0.2)
+Ranbaxy Nigeria Limited
+10
+333.3
+0.9
+333.3
+1.0
+1,797.6
+0.4
+Ranbaxy (Malaysia) SDN. BHD.
+9
+as Ranbaxy Pharmacie Generiques)
+(319.3)
+(0.9)
+(319.3)
+(1.0)
+(3,252.2)
+(0.6)
+Sun Pharma France (Formerly known
+8
+0.0
+194.9
+5
+194.9
+Foreign
+(0.1)
+0.5
+(0.0)
+(0.1)
+(0.0)
+(0.2)
+(0.0)
+Caraco Pharmaceuticals Private
+Limited
+13
+1,633.1
+4.4
+1.7
+0.0
+1,631.4
+5.0
+3,633.2
+0.7
+Sun Pharma Distributors Limited
+12
+146.3
+0.4
+0.7
+0.4
+0.0
+145.6
+(0.5)
+0.2
+609.2
+1.6
+609.2
+1.9
+(2,485.3)
+919.5
+Sun Farmaceutica Do Brasil Ltda.
+2
+324.5
+0.9
+324.5
+1.0
+2,440.9
+0.5
+Sun Pharmaceutical (Bangladesh)
+Limited
+1
+0.6
+3
+Sun Pharma De Mexico S.A. DE C.V.
+0.27
+18.3
+15.2
+-0.6
+Operating Profit Margin (%)
+-24.4
+Net Profit Margin (%)
+FY18
+20.2
+-110.7
+Net Profit Margin is lower for FY22 due to exceptional items
+FY22 Business Highlights
+Sun Pharma's consolidated topline growth for FY22 was
+15.6%, recording a strong recovery compared to the
+low single-digit growth recorded in FY21. Most of the
+Company's businesses have shown good growth for the
+year. The profitability of the Company has also improved,
+with the FY22 EBITDA margins at 26.5% compared to
+24.8% recorded in FY21.
+EBITDA margins have improved from 19.9% in FY18 to
+26.5% in FY22. The improvement in EBITDA margins
+was driven by a combination of strong top-line growth
+across markets, ramp-up in global specialty revenues
+and continued focus on cost optimisation and efficiency
+improvement measures, but was partly counter balanced
+by reversal of savings related to branding, promotion and
+travelling expenses witnessed in FY21.
+COVID-19 Response:
+0.21
+Sun Pharma continued its multi-pronged approach to
+overcoming the challenges of the global COVID-19
+pandemic by focusing on:
+6.0
+Debt Equity Ratio (times)
+Operating Profit Margin (%)
+1.3
+FY21
+FY22
+Ratios
+Table 10 Standalone
+-2.5
+8.7
+8.5
+Net Profit Margin (%)
+6.9
+24.8
+26.5
+• Continuity of manufacturing and supply chain to ensure
+adequate supplies of medicines to customers/patients
+across the world
+Debt Equity Ratio for FY22 has improved over FY21 due to
+reduction in debt and increase in net worth
+Interest coverage ratio is higher for the FY22 due to higher
+Profit before exceptional item, interest and tax and also due
+to reduction in interest cost in comparison to FY21, driven
+by debt repayment
+8.0
+-67.7%
+0.08
+0.03
+1.9
+Variance (%)
+-24.9
+Reasons if variance is more than 25%
+-0.4
+1.0
+Current Ratio (times)
+Interest coverage ratio is higher due to increase in profit
+before interest and tax
+43.0
+4.5
+6.5
+Interest Coverage
+11.3
+1.5
+1.7
+Inventory Turnover (times)
+Debtors turnover is higher due to realisation of debtors
+during FY22
+72.1
+2.1
+3.7
+Debtors Turnover (times)
+Return on Net Worth is lower for FY22 due to exceptional
+items in FY22
+-113.0
+3.1
+Return on Net Worth (%)
+• Automation, digitalisation and leveraging of various IT
+tools for business continuity and enhancement
+Year
+FY22
+FY21
+• Supply of specific medicines used for COVID-19
+treatment as and when needed. In certain instances,
+free COVID-19 medications, masks and sanitizers were
+provided to local healthcare centres/hospitals and
+the community
+FY10
+FY98
+Acquired DUSA to enter the branded specialty market
+•
+FY13
+FY16
+• Acquired InSite Vision, strengthening the ophthalmology portfolio
+• Acquired Odomzo - branded oncology product from Novartis
+• Launched BromSite
+• Acquired Taro Pharma to enter dermatology market
+• Acquired Ocular Technologies - got access to Cequa - a treatment for dry eyes
+FY17
+Received USFDA approval for llumya
+•
+• Launched Odomzo
+FY18
+• Launched INFUGEM - a pre-mixed ready-to-use formulation of Gemcitabine in infusion bags
+• Launched Xelpros
+Received USFDA approval for Cequa
+• Filed llumya (tildrakizumab) with USFDA
+•
+Entered the US market through Caraco acquisition
+22
+87
+2.0
+Chart 6 US Formulations - Sales Trend
+• In June 2021, Sun Pharma entered into an agreement
+with Celgene Corporation (Celgene), a wholly-owned
+subsidiary of Bristol Myers Squibb, to resolve the
+patent litigation regarding submission of an ANDA for
+a generic version of RevlimidⓇ (lenalidomide capsules)
+in the US. Pursuant to the terms of the settlement,
+Celgene has granted Sun Pharma a licence to Celgene's
+patents required to manufacture and sell (subject to
+USFDA approval) a certain limited quantity of generic
+lenalidomide capsules in the US, beginning on a
+confidential date that is sometime after March 2022.
+In addition, the licence will also allow Sun Pharma to
+manufacture and sell an unlimited quantity of generic
+lenalidomide capsules in the US, beginning January
+31, 2026.
+Post the close of the financial year, Sun Pharma
+received final approval from USFDA for its ANDA
+for generic Mesalamine Extended Release Capsules,
+500 mg. The generic product approval is based on
+Pentasa® Extended Release Capsules, 500 mg as a
+reference product.
+company, is eligible for 180 days of CGT exclusivity
+for the product.
+During the year, the Company received final USFDA
+approval for its Abbreviated New Drug Application
+(ANDA) for generic Amphotericin B Liposome
+for injection, 50 mg/vial single-dose vial. The
+generic product approval is based on AmBisomeⓇ
+Liposome for injection, with the 50 mg/vial as a
+reference product. Sun Pharma has been granted
+the Competitive Generic Therapy (CGT) designation
+by USFDA and being the first approved generics
+• Complex Generics Approvals
+In March 2022, Sun Pharma reiterated the clinical
+profile of WinleviⓇ by presenting data from two
+pivotal Phase 3 clinical trials of WinleviⓇ for the
+topical treatment of acne vulgaris (acne). The data,
+which showed favourable safety and efficacy profile
+in patients 12 years and older with acne, was shared
+at the 2022 annual meeting of the American Academy
+of Dermatology (AAD) 2022 in the US.
+WinleviⓇ enhances Sun Pharma's specialty product
+portfolio and reflects its commitment to meeting
+patients' needs by providing innovative dermatology
+medicines. With its safety and tolerability profile,
+combined with its demonstrated efficacy in clinical
+trials, WinleviⓇ has the potential to be an important
+topical treatment option for millions of Americans
+affected by acne vulgaris.
+Post the expiry of the applicable waiting period under
+the US Hart-Scott-Rodino Antitrust Improvements
+Act of 1976 (HSR Act), Sun Pharma commercialised
+WinleviⓇ in the US in November 2021.
+During the year, the Company entered into License
+and Supply Agreements for Winlevi® (clascoterone
+cream 1%) with Cassiopea SpA. WinleviⓇ was
+approved by the United States Food and Drug
+Administration (USFDA) in August-2020 as a novel
+drug with a unique mechanism of action for the topical
+treatment of acne in patients 12 years and older.
+Sun Pharma has the exclusive right to commercialise
+WinleviⓇ in the US and Canada, and Cassiopea will
+be its exclusive supplier.
+• Enhancing the Specialty Portfolio
+• The US generics market continues to witness price
+erosion, as a result of the fast pace of generic approvals
+and customer consolidation that has increased
+competition. The Company continues its efforts to
+counter generic price erosion with a combination of new
+generic launches and efficient supply chain management.
+• Revenues from the US grew by 12.7% YoY to *113,737
+Million in FY22. The growth was mainly driven by the
+ramp-up in specialty product sales. Ilumya, Cequa,
+Levulan and Odomzo were the key contributors while
+Absorica witnessed decline in sales as expected, due to
+the entry of generics
+FY22 Highlights
+Financial Statements
+Management Discussion and Analysis
+Statutory Reports
+Corporate Overview
+•
+• Safety of employees across all offices, R&D centres and
+manufacturing facilities
+• Launched llumya and Yonsa
+• Launched Cequa and Absorica LD
+54
+March 31, 2022
+approved as on
+Cumulative ANDAS
+512
+Revenue in FY22
+Revenue share
+*113,737 Million 605
+Cumulative NDAs approved as on
+March 31, 2022
+30%
+Business-wise Review
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+24
+21
+local hospitals
+Scaling up Specialty. Leading with Care.
+• Helped in installing oxygen generation plant at
+• Providing free foodgrains to the local community in need
+US Business
+Over the last two decades, Sun Pharma has established
+itself as a leading player in the generics market in the US,
+the world's largest pharmaceutical market. As per IQVIA
+database, it is the 8th largest generics pharmaceutical
+company in the US and is ranked 2nd by prescriptions
+in the US dermatology market. It is rapidly ramping
+up its presence in the specialty branded market, with
+dermatology, ophthalmology and oncology as key target
+segments. The US business accounted for about 30% of
+consolidated revenues in FY22.
+Cumulative ANDAs filed
+as on March 31, 2022
+FY20
+•
+Presented pre-clinical data for GL0034 (GLP-1R agonist) at the American Diabetes Association Conference.
+Presented long-term clinical data for llumya and other clinical insights for Odomzo and Levulan at the American Academy
+of Dermatology Conference.
+Launched WinleviⓇ (clascoterone cream 1%) for topical treatment of acne vulgaris.
+•
+•
+Key Milestones in the US Business
+Table 11
+Major Initiatives
+The Company offers a comprehensive portfolio comprising
+various dosage forms, including liquids, creams, ointments,
+gels, sprays, injectables, tablets, capsules, and drug-
+device combinations. It focuses on Central Nervous
+System (CNS), dermatology, cardiology, oncology and
+ophthalmic segments among many others in the US. It is
+a valued supplier to the largest wholesalers, distributors,
+and chain drugstores in the US. In addition, the Company
+has developed long-term relationships with healthcare
+providers and payors in the country. Sun Pharma has both
+on-shore and off-shore vertically integrated manufacturing
+capabilities and a strong distribution system to service its
+customers in the US.
+USFDA approval as on
+March 31, 2022
+NDAs pending
+13
+as on March 31, 2022
+Cumulative NDAs filed
+67
+ANDAs pending
+USFDA approval as on
+March 31, 2022
+93
+FY19
+Debt Equity Ratio (times)
+Market Capitalisation*
+40.6
+Leveraging benefits of vertical
+integration
+Optimising operational costs
+Cost Leadership
+.
+Scaling up Specialty. Leading with Care.
+Focus on payback timelines
+Ensure acquisitions yield targeted return on
+investment (ROI)
+Focus on access to products, technology,
+market presence
+Use acquisitions to bridge critical product/
+capability gaps
+•
+Business Development
+Community Upliftment, Access to Affordable
+Healthcare & Environment Conservation
+-
+Sustainability Committed to Governance,
+regulatory standards
+Balance Profitability and
+Investments for the Future
+• Increasing contribution of specialty and
+complex products
+Future investments directed towards
+differentiated products
+19
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+332
+32
+1,434
+FY22
+FY21
+Tet
+Ensure sustained compliance with global
+200.1
+193.6
+(₹)
+Share
+per
+Book value
+20
+20
+Business-wise Revenue Share (FY22)
+Key Performance Indicators
+•
+•
+US Business
+Emerging
+Markets
+Business
+Our
+Businesses
+Generics
+Business
+Indian Branded
+Rest of
+the World
+Business
+Business
+Global
+Consumer
+Healthcare
+API Business
+Our strategy is to create sustainable long-term shareholder value inspired
+by our Vision of 'Reaching People and Touching Lives Globally as a Leading
+Provider of Valued Medicines'.
+Business Model
+Financial Statements
+Management Discussion and Analysis
+Statutory Reports
+107
+Corporate Overview
+Global
+Specialty
+Business
+Focus Areas
+• Enhance share of specialty products in
+overall business
+• Develop and commercialise
+differentiated and difficult-to-
+manufacture products
+Focus on key markets - achieve critical mass
+•
+complex products
+Achieve differentiation by focusing on technically
+•
+Enhance share of specialty business globally
+•
+Speed to market
+Growth & Sustainability
+community upliftment and reducing
+carbon footprint
+governance and focus on improving
+access to healthcare for all,
+• Ensure high level of corporate
+• Focus on improving return ratios
+Gain critical mass across key
+international markets
+•
+• Maintain market leadership and
+high brand equity in India - leverage
+strengths for in-licensing latest
+generation innovative products for the
+domestic market
+Growth Strategies
+Gross Sales
+384
+EBITDA
+Consolidated
+Table 9
+Statutory Reports
+Corporate Overview
+Financial Statements
+Management Discussion and Analysis
+Financial Ratios
+31.9
+332
+FY22
+## Row includes Western Europe, Canada, Israel, Japan, Australia, New Zealand and other markets
+Property, plant, equipment and other intangible assets (at cost) includes Capital work-in-progress & Intangible assets under development
+Adjusted Net Profit after Minority Interests and Adjusted Earnings Per Share exclude the impact of exceptional items
+(Revenue from contracts with customers) - (cost of material consumed + purchase of stock-in-trade + changes in inventories of finished
+goods, stock-in-trade and work-in-progress + employee benefits expense + other expenses + Net gain/loss on foreign currency transactions)
+* As on March 31 of the respective year
+35%
+EBITDA
+Active Pharmaceutical Ingredients (API) and others
+Ratios
+FY22
+FY21
+Variance (%)
+51.2
+72.0
+Interest Coverage
+19.1
+1.0
+1.2
+Inventory Turnover (times)
+International
+-1.1
+3.6
+Debtors Turnover (times)
+9.1
+6.2
+6.8
+Return on Net Worth (%)
+Reasons if variance is more than 25%
+3.7
+India
+30%
+33%
+(Billion)
+per share#
+Adjusted earnings
+Adjusted net profit after
+minority interests#
+59
+(*Billion)
+102
+(3)
+480
+65%
+Business Mix by Geography (FY22)
+2,195
+Net Worth
+(*Billion)
+82
+(Billion)
+465
+Current Ratio (times)
+FY21
+FY22
+O
+Rest of World (ROW)##
+Emerging Markets
+Indian Branded Generics
+US Business
+O
+5%
+24.7
+18%
+#
+309
+FY21
+(*Billion)
+Property, plant and
+equipment and other
+intangible assets (at cost)**
+(*Billion)
+122
+14%
+105
+2
+FY19
+Leading
+• Revenues from emerging markets grew by 16.6% YoY
+to 67,432 Million driven by growth across multiple
+markets. Many of these markets were adversely
+impacted by the COVID-19 pandemic in FY21.
+FY22 was a year of normalisation, with easing of
+COVID-19 restrictions.
+FY22 Highlights
+Sun Pharma is one of the largest Indian pharmaceutical
+companies operating in the emerging markets with presence
+in ~80 countries. The Company has local manufacturing
+facilities in Bangladesh, South Africa, Malaysia, Romania,
+Egypt, Nigeria, and Russia, giving it better flexibility to serve
+these markets. Emerging markets accounted for about 18%
+of the consolidated revenues for FY22.
+Markets with local manufacturing footprint
+7
+Indian company in Emerging Markets
+Revenue in FY22
+Markets sales reach
+~80
+Revenue share
+18%
+Emerging Markets: Among the Leading Indian Companies in Emerging Markets
+• Post the success of the field force expansion undertaken
+in FY21, target to further expand the field force strength
+in FY23 by approximately 10%.
+*67,432 Million
+• Continue to evaluate in-licensing opportunities for latest
+generation innovative products.
+2,200+
+• In terms of local currency, the large markets like Russia,
+Romania and Brazil have grown well compared to FY21.
+*54,544 Million Leading
+Rest of the World (ROW): Western Europe, Canada, Israel, Japan, Australia & New Zealand (ANZ) and Other markets
+• Commercialise specialty products in key markets
+• Increase product offerings in emerging markets
+• Focus on profitable growth
+• Further enhance critical mass in key markets
+Sales representatives
+Corporate Overview
+Road Ahead
+46
+26
+• In May-2022, Sun Pharma's partner, China Medical
+System Holdings (CMS), received regulatory approval for
+Ilumetri (tildrakizumab) in Hong Kong, for the treatment
+of adults with moderate-to-severe plaque psoriasis who
+are candidates for systemic therapy.
+• Acquired Uractiv™M OTC portfolio from Fiterman
+Pharma in Romania. It is the number one brand in its
+category and the portfolio includes 12 SKUs with annual
+revenues of approximately US$ 8.7 million. The portfolio
+comprises food supplements including minerals, vitamins
+and adjuvants; cosmetics and medical devices used for
+maintaining urinary tract health.
+⚫ llumetri (tildrakizumab) was commercialized in Romania
+in February 2022.
+Financial Statements
+Management Discussion and Analysis
+• Continuously innovate to ensure high brand equity
+with doctors.
+• Continue to focus on productivity improvement.
+• Strive to maintain leadership position in a highly
+competitive market.
+Road Ahead
+2
+Gynaecologists
+2
+2
+Nephrologists
+2
+2
+Ophthalmologists
+1
+General surgeons
+1
+1
+Chest physicians
+2
+1
+Orthopaedic specialists
+2
+1
+After the close of the financial year, in May 2022, Sun
+Pharma announced plans to launch a first-in-class
+oral drug, Bempedoic Acid, in India for reducing
+low-density lipoprotein (LDL) cholesterol. The
+Company will launch the drug under the brand
+name BrilloⓇ, which has a new mechanism of action
+compared to the currently available lipid-lowering
+agents. It is indicated for people who have an
+inherited genetic disorder that causes high cholesterol
+levels or those with established heart disease, where
+cholesterol levels remain high despite lifestyle
+changes and the use of maximum tolerated dose
+of statins. Bempedoic Acid 180-mg dose is already
+approved in the US and European Union for the
+treatment of hypercholesterolemia.
+During the year, Sun Pharma entered into an exclusive
+patent licensing agreement with H. Lundbeck A/S
+('Lundbeck') to market and distribute its own version
+of Vortioxetine in India under the brand name,
+VORTIDIF™M. Vortioxetine is a novel antidepressant
+with multimodal activity, and is approved to treat
+Major Depressive Disorder (MDD) in adults. The
+product is approved in over 80 countries, including
+the US, EU, Canada and Australia.
+In September 2021, Sun Pharma launched a novel
+formulation in cough management - Chericof® 12
+in India. It is the first prescription cough syrup in
+India which gives relief for up to 12 hours and is
+manufactured using the Polistirex technology for
+sustained release of the drug.
+During the year, Sun Pharma received Emergency Use
+Authorization (EUA) from the Drugs Controller General
+of India (DCGI) to manufacture and market a generic
+version of MSD and Ridgeback's molnupiravir under
+the brand name MolxvirⓇ in India. Earlier in the year,
+the Company had signed a non-exclusive voluntary
+licensing agreement with MSD to manufacture and
+supply a generic version of molnupiravir in over 100
+low and middle-income countries (LMICs) including
+India. The DCGI, based on the review of the clinical
+data of molnupiravir, approved it for treatment of
+adult COVID-19 patients with SpO2 > 93% and for
+those who have high risk of progression of the disease
+including hospitalisation or death.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+25
+Scaling up Specialty. Leading with Care.
+In June 2021, Sun Pharma and Ferring
+Pharmaceuticals entered into licensing agreement
+for co-marketing CARITEC® in India. CARITEC®
+is an innovative obstetric drug for preventing
+post-partum haemorrhage (PPH). It is a Room
+Temperature Stable (RTS) formulation of Carbetocin
+and addresses limitations in refrigeration and
+cold-chain transportation.
+• New Product Approvals and Launches in India
+• Improved productivity of the sales force recruited
+in FY21
+• FY22 also witnessed normalisation of field force
+operations, travel and branding and promotional
+activities which were impacted in FY21 due to the
+pandemic restrictions
+• Growth was driven by a combination of factors such
+as normalised market conditions and improved patient
+flow to doctor's clinics, which led to higher growth in
+the chronic and semi-chronic segments, coupled with
+incremental contribution from new launches. During
+the year, Sun Pharma launched 77 new products in the
+domestic market
+• Revenue from the India Formulations business grew by
+23.4% to 127,593 Million, driven by growth across most
+of the Company's therapies. FY22 witnessed recovery
+across multiple segments after the slower growth
+recorded in FY21 due to the COVID-19 pandemic
+FY22 Highlights
+Drop in productivity in FY21 was due to the impact of
+sales force expansion
+14%
+Revenue share
+Revenue in FY22
+5
+Road Ahead
+• Sustained focus and investments in anchor brands
+• Maintain leadership in existing markets through focus on
+innovative solutions
+• Enhance presence in high growth markets
+• Augmenting consumer reach through opening of new
+markets and distribution channels
+Active Pharmaceutical Ingredient (API) Business
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+5%
+~20-30 APIs
+Scaled up annually
+14
+Manufacturing units
+*18,354 Million
+Revenue in FY22
+Revenue share
+22
+27
+Scaling up Specialty. Leading with Care.
+111
+-
+• During the year, Sun Pharma launched two specialty
+products llumya and Cequa - in Canada. In FY21, the
+Company had launched llumya in Japan.
+Road Ahead
+• Enhance contribution of specialty products to revenues
+• Focus on complex generic launches
+• Gain critical mass in key markets
+Top 10
+Consumer healthcare
+companies in India, Romania,
+Nigeria and Myanmar
+Sun Pharma is one of India's top ten consumer healthcare
+companies, having operations in about 20 emerging
+markets. It is one of the leading consumer health
+franchisees in India with bellwether brands such as Revital,
+Volini and Abzorb in its portfolio. In India, Sun Pharma's
+consumer healthcare products have strong distribution
+reach across pharmacies, retail stores and online
+e-commerce platforms.
+FY22 Highlights
+• In FY22, Sun Pharma's key brands - Volini and Revital
+- continued to maintain strong market position in their
+respective categories on the back of higher consumer
+preference and brand recall.
+~500,000
+Pharmacy and Retail outlets
+in India where Sun Pharma's
+products are available
+• Given the heightened consumer interest in the health
+supplement space, new campaigns to strengthen the
+position of the Revital H franchise in the nutraceutical
+category were undertaken.
+• During the year, Sun Pharma forayed into the nutrition
+bar segment in India with the launch of Revital NXT. The
+product is a brand extension of Revital H, India's leading
+and most trusted health supplement for over three
+decades. The product has been launched in two different
+variants - Revital Energy NXT and Revital Protein NXT.
+The market for nutrition bars in India is growing rapidly,
+given millennials' and Generation Z's increasing focus on
+fitness for a healthy lifestyle.
+~370 APIs
+1
+Product portfolio
+377
+• Revenue from RoW markets increased by 11.4% to
+*54,544 Million driven by Western Europe and ramp-up
+in specialty sales
+FY22 Highlights
+Over the past few years, Sun Pharma has initiated the
+process of commercialising its specialty products in some of
+these markets.
+Among
+Countries
+footprint
+20+
+28
+Consumer healthcare
+companies in India
+Global Consumer Healthcare Business 9,10,11
+Sun Pharma has an expanding product portfolio in RoW
+markets, including injectables, hospital products, and
+retail products. It has local manufacturing footprints in
+Canada, Israel, Japan, Australia, and Hungary, and has
+a distribution-led business model that focuses on the
+development and commercialisation of complex generics
+to achieve long-term profitability.
+Sun Pharma is one of the leading Indian pharmaceutical
+companies in Western Europe, Canada, Israel, Japan,
+Australia and New Zealand (ANZ). These markets have
+high penetration of modern medicines, mainly driven by
+government-administered healthcare or by significant
+private insurance coverage for pharmaceutical products.
+Most of these markets have similar characteristics, such
+as an ageing population, rising rates of chronic illnesses
+and lifestyle diseases, and government efforts to reduce
+healthcare spending.
+manufacturing footprint
+Markets with local
+Indian company in Row
+Among
+Top 10
+Sun Pharma has wide-ranging R&D capabilities for the
+development of products across dosage forms, such as
+injectables, orals, liquids, ointments, gels, sprays, hormones
+and oral products. A strong intellectual property capability
+supports the R&D team.
+Strong R&D team
+2,700+
+DMF/CEP approvals to date
+DMF/CEP filings to date
+Sun Pharma prioritises the API business as it enables
+strong backward integration and reduces its dependence
+on third-party suppliers. Over the years, the Company has
+developed many APIs that cater to its captive requirements
+and also helps it supply to large generics manufacturers and
+innovator companies. The Company has 14 API facilities
+which support its formulation business.
+FY22 Highlights
+• Revenue from the API business decreased by 5.9% to
+*18,354 Million mainly due to lower sales recorded in
+India and Australia.
+Road Ahead
+• Continue to focus on supporting the formulations
+business through the development of strategic APIs to
+ensure speed to market and cost competitiveness
+• Ensure consistent supplies and high service standards
+for customers
+Research and Development (R&D): Driving innovation
+5.8%
+R&D spend as percentage
+of sales in FY22
+*215+ Billion
+Cumulative R&D
+expenditure till date
+With a strong R&D team, Sun Pharma strives to provide
+patients with innovative and affordable treatments
+to alleviate their healthcare problems. The Company
+continuously invests in developing a robust pipeline of
+generics, branded generics and specialty products for the
+global market.
+490
+ENT specialists
+Statutory Reports
+1
+114
+Chart 7 Cumulative ANDAs filed and approved
+561
+422
+571
+453
+FY22
+581
+595
+501
+605
+(Nos.)
+512
+ड्ढे ड्ढे ढ ढ ढ
+483
+(in Billion)
+FY21
+101
+Rank by prescription with 11
+different classes of doctors
+80
+Chart 9 India Formulations - Sales Trend
+generation innovative products for patients in India.
+While the Company continues to launch a slew of new
+products in India, developed through its in-house R&D
+efforts, it also leveraging its strengths in India to position
+itself as a partner of choice for in-licensing of latest
+With 8.34% market share and a strong position in the
+chronic, sub-chronic and acute segment in India, Sun
+Pharma is India's largest pharmaceutical company. The
+Company offers a comprehensive product portfolio across
+various therapeutic segments, including neuropsychiatry,
+cardiology, diabetes, gastrointestinal, pain/analgesics,
+gynaecology, ophthalmology, urology, dermatology,
+respiratory, anti-infectives and other segments. Sun Pharma
+has one of the largest sales force in the country, coupled
+with a strong distribution and geographical reach. It enjoys
+strong brand equity among the medical fraternity.
+Brands among India's top 300 brands Strong field force
+11,149
+Rank with 8.34% market share
+#1
+32
+Revenue in FY22
+*127,593 Million
+• Focus on product robustness and supply
+chain efficiencies
+Ensure broad product offering to customers
+across multiple dosage forms
+Filed
+Approved
+97
+Scaling up Specialty. Leading with Care.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Antibiotic
+14
+Gastro
+1
+GS
+5
+15
+Others
+33%
+Revenue share
+•
+• Continue to focus on complex generics and
+high entry barrier segments
+• Enhance share of specialty/branded business
+Road Ahead
+India Branded Generics Business: Largest Pharma Company in India 5,6
+Metabolism
+FY20
+15
+Chart 8
+Cumulative ANDA Approvals by Therapeutic
+Areas as of March 31, 2022
+(Nos.)
+130
+115
+89
+Dermatology
+CNS
+CVS
+49
+Pain
+31
+Allergy
+20
+Oncology
+23
+103
+73
+(in Billion)
+1
+Psychiatrists
+February 2021
+February 2022
+Specialist
+India Prescription Ranking -
+Leadership in Key Therapeutic Areas
+Table 12
+Others
+● Ophthalmology
+Urology
+Gynaecology
+Vitamins/Minerals/Nutrients
+Respiratory
+Dermatology
+◆ Pain/Analgesics
+1
+Neurologists
+1
+1
+Dermatology
+1
+1
+Urologists
+1
+1
+Consultant Physicians
+Diabetology
+1
+Gastroenterologists
+1
+1
+Diabetologists
+1
+1
+Cardiologists
+1
+128
+Anti-infectives
+Neuropsychiatry
+24
+24
+5%-
+6% •
+Chart 10
+Break-Up5
+India Business Therapeutic Revenue
+5%
+4% 3%
+2% 4%
+7%
+8%
+.11%
+12%
+● Gastroenterology
+#1
+Cardiology
+16% 17%
+11.4
+Corporate Overview
+Statutory Reports
+(%)
+8.6
+Financial Statements
+Management Discussion and Analysis
+Best-in-class Field Force Productivity
+9.4
+Sun Pharma has among the highest sales per medical
+representative (MR) ratio in India's pharmaceutical
+sector. The Company's MRs are well trained and
+scientifically oriented, with a strong performance record.
+Chart 11 Sales Per Medical Representative
+(in Million)
+10.0
+8.8
+NA
+Networth attributable to
+NA
+venture is not consolidated
+NA
+5
+NA
+March
+13, 2014
+NA
+March
+10, 2021
+December
+31, 2021
+Pty Ltd
+WRS
+Bioproducts
+September
+10, 2018
+31, 2021
+December
+Tarsier Pharma
+Ltd (Formerly
+known as Tarsius
+Pharma Ltd.)
+108.9
+December
+31, 2021
+31, 2022
+March
+31, 2017
+March
+March
+31, 2022
+October
+09, 2015
+13, 2014
+February
+Date of acquisition
+December
+31, 2021
+Latest Balance Sheet Date
+1
+Medinstill LLC
+(Consolidated)
+Trumpcard
+Advisors and
+Finvest LLP
+(Consolidated)
+Generic Solar
+Power LLP
+Artes
+Biotechnology
+GmbH
+No.
+Name of Associates/Joint Ventures
+2
+NA
+Shares of Associate/Joint Ventures
+held by the company on the year end
+No.
+NA
+Reason why the associate/joint
+4
+significant influence
+NA
+NA
+ΝΑ
+ΝΑ
+ΝΑ
+NA
+Description of how there is
+3
+12.50%
+20.96%
+19.99%
+40.61%
+28.76%
+45.00%
+Extend of Holding %
+Associates/Joint Venture
+428,571
+112.2
+455,447
+443.5
+1,999
+945.5
+NA
+819.4
+340.2
+Amount of Investment in
+15,853
+488.5
+(219.1)
+(876.9)
+59.8
+Others
+Receiving of service
+Others
+Joint venture
+Reimbursement of expenses (Paid)
+Others
+Joint venture (March 31, 2022: 20,077)
+Associates
+Rendering of service
+Others
+Reimbursement of expenses (Received)
+Others
+Key management personnel
+Unconsolidated subsidiary (March 31, 2021: 4,793)
+Other operating revenue/Other Income
+Loan given
+Joint venture
+Loan received back
+Joint venture
+Interest income
+Joint venture
+Security Deposit received
+Others
+Lease Rental and hire charges (Income)
+Others
+Rent expense / payment towards lease liabilities
+Others
+Investment in Associates
+Sr.
+Associates
+Associates
+Associates
+Others
+Sale of property, plant and equipment
+4.4
+Shareholding as per latest Balance
+Sheet (adjusted till March 31, 2022)
+6
+Profit/(loss) for the year
+i.
+Considered in Consolidation
+51.9
+ii.
+Not Considered in Consolidation
+63.4
+(0.0)
+(0.0)
+73.3
+107.2
+(67.1)
+(4.4)
+(253.0)
+Others
+Revenue from contracts with customers, net of returns
+Purchase of property, plant and equipment and other intangible assets
+Others
+Others
+Purchase of goods
+Details of related party transaction:
+(1,281.1)
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+(30.8)
+FOR THE YEAR ENDED MARCH 31, 2022
+Associate
+31.01.2020 INR
+* in Million
+Sun Pharma Distributors Limited
+71
+2.5
+1.00
+16.01.2017 INR
+Sun Pharmaceutical Medicare Limited
+70
+610.3
+1.00
+19.03.2019 INR
+27.07.2017 INR
+69
+100.00%
+(0.7)
+(0.7)
+4.2
+0.3
+0.9
+0.5
+0.1
+Zenotech Laboratories Limited
+1.00
+1.00
+72
+28.02.2022 USD
+Alchemee, LLC
+75
+(5.7)
+12.0
+11.95
+21.12.2020 RMB
+Sun Pharma (Shanghai) Co.,Ltd
+74
+1.5
+(42.1)
+0.88
+25.10.2020 BDT
+Sun Pharmaceuticals (EZ) Limited
+73
+(123.3)
+2.5
+1.00
+Remuneration/ compensation
+Realstone Infra Limited
+52.7
+75.80
+21.09.2016 INR
+68
+Corporate Overview
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint venture
+FORM AOC - 1
+100.00%
+(18,995.8)
+100.00%
+325.3
+88.6
+413.9
+(18,995.8)
+Statutory Reports
+1.9 3,110.8
+747.4
+45,774.0
+0.3
+0.93
+75.80
+19.12.2016 RUB
+18.11.2016 USD
+Sun Pharmaceutical Holdings USA, Inc
+67
+JSC Biosintez
+66
+known as Ranbaxy (Netherlands) B.V.)
+4,234.0 3,486.3
+45,774.0
+Foundation for Disease Elimination and
+Control of India
+Financial Statements
+* In Million
+% of
+Shareholding
+Proposed
+Dividend
+after
+Taxation
+Taxation
+/ (Loss)
+Provision
+for
+Taxation
+Profit
+Profit
+/ (Loss)
+before
+Turnover
+Consolidated Accounts
+Investment
+Other than
+Investment in
+Subsidiary
+Total
+Total
+Assets Liabilities
+Currency Rate
+of
+No.
+Capital Reserve
+Name of the Subsidiary Company
+acquisition Reporting Closing
+Sr.
+Date of
+subsidiary
+2,784.6
+96.1
+940.8
+234.4
+(2,943.4) 4,724.6 7,665.5
+3,631.7 23,974.8 20,341.6
+3,577.3 3,698.1
+384.4
+373.8
+10.1
+3.8
+4,678.5
+365.7
+2,616.5
+78.48%
+(11.2)
+(11.2)
+59.1
+94.4
+633.7
+539.3
+75.80
+28.02.2022 USD
+Note:
+The Proactiv Company Corporation
+Formerly known as Galderma Holdings, Inc.)
+78.48%
+74.6
+78.48%
+(20.4)
+(1.9)
+(22.3)
+346.6
+301.4
+79
+(45.2)
+(307.6)
+1.
+Scaling up Specialty. Leading with Care.
+Statement containing salient features of the financial statement of subsidiaries / associate companies/ joint venture
+PART "B": ASSOCIATE COMPANIES AND JOINT VENTURES
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts)
+Rules, 2014
+FORM AOC - 1
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+293
+13. With effect from June 07, 2021 SPIL De Mexico S.A. DE C.V. has been dissolved.
+12. Sun Pharma Global FZE is under dissolution.
+11. With effect from January 28, 2022 Taro Pharmaceutical Laboratories Inc. was merged into Taro Pharmaceuticals U.S.A., Inc.
+10. With effect from September 01, 2021 Kayaku Co. Ltd. has been ceased to be the subsidiary of the company.
+0.0' represents amount less than 0.05 Million and rounded off.
+With effect from September 04, 2021 Ranbaxy Ireland Limited has been dissolved.
+8. Sonke Pharmaceuticals Proprietary Limited have been consolidated with Ranbaxy South Africa (Pty) Ltd.
+7. The above does not include Taro Pharmaceutical Laboratories Inc. and 2 Independence Way LLC as they have no operation and does not have any Assets, Liabilities or Equity as on the close of
+their financial year.
+3 Skyline LLC and One Commerce drive LLC are being consolidated with Taro Pharmaceuticals U.S.A., Inc.
+Books of accounts and other related records/documents of the overseas subsidiaries of the Zenotech Laboratories Limited were missing and due to non-availability of those records/information,
+Zenotech Laboratories Limited is unable to prepare consolidated accounts.
+6.
+5.
+2. In respect of entities at Sr. Nos. 5 to 7, 41, 58, 66 and 74 the reporting date is as of December 31, 2021 and different from the reporting date of the parent company.
+In respect of entitiy at Sr. No. 19 and 75 to 79 has been incorporated/ acquired during the year ended March 31, 2022.
+Foundation for Disease Elimination and Control of India (FDEC), a wholly owned subsidiary incorporated in India on September 21, 2016 by the parent company as part of its Corporate Social
+Responsibility (CSR) initiative, has entered into an MOU with Indian Council of Medical Research (ICMR) and Madhya Pradesh State Government to undertake the Mandla Malaria Elimination
+Demonstration Project with a goal to eliminate Malaria in the state. FDEC is a Section 8 company not considered for consolidation since it can apply its income for charitable purposes only and
+can raise funds/contribution independently.
+4.
+3.
+9.
+233.0
+75.80
+28.02.2022 USD
+(5.7)
+(5.7)
+45.1
+99.99%
+(30.0)
+(30.0)
+100.00%
+(83.8)
+(83.8)
+100.00%
+100.00%
+564.0
+100.00%
+(188.7)
+1.2
+68.84%
+221.7
+(122.7)
+99.0
+(187.5)
+2,195.4
+402.5 127,962.5
+1,631.4
+1,893.9
+468.8
+(306.0)
+The Proactiv Company Holdings, Inc. (
+78
+75.80
+28.02.2022 USD
+The Proactiv Company KK
+77
+78.48%
+34.5
+(23.1)
+11.4
+184.4
+54.2
+662.4
+608.2
+75.80
+28.02.2022 USD
+Proactiv YK
+76
+78.48%
+(220.0)
+(86.0)
+Joint Venture
+Key management personnel
+44.9
+CSR
+0.88
+29.03.2001 BDT
+Sun Pharmaceutical (Bangladesh) Limited
+2
+(6.5)
+7.0
+1.00
+52.7
+Taxation
+/ (Loss)
+after
+Provision
+for
+Taxation
+Profit
+Profit
+/ (Loss)
+before
+Taxation
+Turnover
+Other than
+Investment in
+Subsidiary
+subsidiary
+12.11.2010 INR
+Proposed
+Dividend
+3
+Sun Pharmaceutical Industries, Inc.
+14.06.2011 USD
+74,380.2
+9,206.2
+72.50%
+328.1
+100.00%
+% of
+Shareholding
+2.2
+0.7
+190.4
+2.9
+518.5
+2,241.8
+55.8
+55.3
+2,389.6 3,629.5 1,187.2
+59,954.6 143,871.2 83,916.6
+(2,569.5) 1,482.4 3,963.4
+88.5
+15.89
+22.05.2009 BRL
+Sun Farmaceutica do Brasil Ltda.
+4
+75.80
+Green Eco Development Centre Limited
+(629.6)
+1
+Total
+Assets
+211.2
+88.4
+86.4
+88.4
+86.4
+365.7
+1,477.0
+1,202.9
+365.7
+0.9
+0.9
+0.5
+0.5
+0.5
+0.5
+63.5
+1,477.0
+211.2
+1,202.9
+Key Management Personnel (KMP) and Relatives of KMP who are under the employment of the Company are entitled to
+post employment benefits and other long term employee benefits recognised as per Ind AS 19 - 'Employee Benefits'. As
+these employee benefits are lump sum amount provided on the basis of actuarial valuation, the same is not included above
+and there is no Share-based payments to key management personnel and relatives of KMP.
+Capital Reserve
+acquisition Reporting Closing
+Currency Rate
+of
+No.
+Name of the Subsidiary Company
+Sr.
+Investment
+Date of
+Consolidated Accounts
+Financial Statements
+Statutory Reports
+Corporate Overview
+* In Million
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/joint venture
+PART "A": SUBSIDIARIES
+FORM AOC - 1
+290
+The sales to and purchases from related parties are made on an arm's length basis. Outstanding trade balances at the
+year-end are unsecured and there have been no guarantees provided or received for any related party receivables
+or payables.
+Total
+Liabilities
+(631.5)
+1.9
+100.00%
+Other terms and conditions: Subject to the control
+and supervision of the Board of Directors and
+subject to the provisions of the Act, Mr. Dilip S.
+Shanghvi shall have the power of general conduct
+and management of the affairs of the Company
+and he shall be entitled to exercise all such powers
+and to do all such acts and things the Company is
+authorised to exercise and all such powers, acts or
+things which are directed or required by the Act
+or any other law or by the Articles of Association
+of the Company except such powers/ acts/ things
+which can be exercised or done by the Company
+in General Meeting or by the Board of Directors.
+Mr. Dilip S. Shanghvi to perform such duties and
+exercise such powers as are additionally entrusted
+to him by the Board and/or the Chairman. He is
+further authorized to do all such acts, deeds, things
+and matters as he may be required or permitted to
+do as a Managing Director.
+The appointment will be for a period of five years
+which may be terminated by either party giving
+to the other thirty days' notice in writing or upon
+Mr. Dilip S. Shanghvi's ceasing to be a Director of
+the Company.
+RESOLVED FURTHER THAT the Board of Directors
+of the Company be and is hereby authorised to take
+such steps as may be required to give effect to this
+resolution."
+10. To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+"RESOLVED THAT pursuant to the provisions of
+Regulation 23(4) of the Securities and Exchange
+Board of India (Listing Obligations and Disclosure
+Requirements) Regulations, 2015 as amended from
+time to time, basis the approval and recommendation
+of the Corporate Governance and Ethics Committee,
+Audit Committee and Board of Directors of the
+Company, the approval of the members of the
+Company be and is hereby accorded to related party
+transaction(s)/ arrangement(s) (whether by way of an
+individual transaction or transactions taken together
+or series of transactions or otherwise) proposed to
+be entered into between two non wholly-owned
+subsidiaries of Sun Pharmaceutical Industries Limited
+("the Company"), that is, Taro Pharmaceuticals USA,
+Inc. ("Taro USA") and Taro Pharmaceuticals Inc.,
+Canada ("Taro Canada"), for purchase and sale of
+pharmaceutical products, on such terms and conditions
+as may be agreed between Taro USA and Taro Canada,
+for a period of 2 (two) financial years from April 1,
+2022 to March 31, 2023 and April 1, 2023 to March
+31, 2024, upto an aggregate value equivalent to
+*2,000 crores for each financial year, and that such
+transaction(s)/ arrangement(s) shall be at arm's length.
+RESOLVED FURTHER THAT the Board of Directors
+of the Company and any Committee thereof be and is
+hereby authorised to do all such acts, deeds, matters
+and things as it may deem fit and settling all such
+issues, questions, difficulties or doubts whatsoever
+that may arise and to take all such decisions as may be
+required to give effect to this resolution."
+By order of the Board of Directors
+For Sun Pharmaceutical Industries Limited,
+Anoop Deshpande
+Minimum Remuneration: In the event of
+loss or inadequacy of profits in any financial
+year, Mr. Dilip S. Shanghvi shall be entitled
+to receive a total remuneration including
+perquisites, etc. not exceeding the ceiling
+limits as approved by the Members herein
+above, as minimum remuneration.
+Company Secretary and Compliance Officer
+(Membership No.: A23983)
+Registered Office:
+SPARC, Tandalja,
+-
+Vadodara 390 012.
+Gujarat, India
+NOTES:
+1.
+2.
+The Explanatory Statement pursuant to Section 102(1)
+of the Companies Act, 2013 ('the Act') relating to
+the Ordinary/Special Business(es) to be transacted
+at the 30th Annual General Meeting of the Company
+(the "Meeting" or "AGM") under Item Nos. 4 to 10, is
+annexed hereto. The relevant details as required under
+Regulation 36 of the Securities and Exchange Board of
+India (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 and Clause 1.2.5 of Secretarial
+Standard on General Meetings issued by the Institute
+of Company Secretaries of India (SS-2), in respect of the
+persons seeking re-appointment as Directors or whose
+remuneration is proposed, are given under the heading
+"Profile of Directors" forming part of this Notice.
+Place: Mumbai
+Date: August 3, 2022
+d.
+5.
+Notice
+The main terms and conditions of Mr. Dilip S.
+Shanghvi's re-appointment shall be as under:
+1.
+2.
+3.
+4.
+Mr. Dilip S. Shanghvi shall hold office as the
+Managing Director of the Company for a
+further period of five years with effect from
+April 1, 2023 on the terms and conditions
+hereinafter mentioned.
+Mr. Dilip S. Shanghvi shall act as the Managing
+Director and may devote such time in the
+performance of his duties as the Managing
+Director of the Company as it is considered
+necessary and expedient.
+The Managing Director has to perform such
+duties and exercise such powers as are
+additionally entrusted to him by the Board.
+REMUNERATION:
+The remuneration payable shall be determined by
+the Board of Directors, from time to time, within
+the maximum limits set forth below:
+a.
+b.
+C.
+Salary (including bonus and perquisites) up
+to 8,10,00,000/- (Rupees Eight Crores and
+Ten Lakhs only) per annum.
+Perquisites: He will be entitled to furnished/
+non-furnished accommodation or house
+rent allowance, gas, electricity, medical
+reimbursement, leave travel concession
+for self and family, club fees, personal
+accident insurance, company-maintained
+car, telephone and such other perquisites
+in accordance with the Company's rule,
+the monetary value of such perquisites
+to be determined in accordance with the
+Income Tax Rules, 1962.
+Commission at the rate of not more than
+1% of the net profit for the year, the Board
+of Directors will determine the commission
+payable within the overall ceiling laid down in
+section 197 and 198 of the Act and Schedule
+V as may be applicable from time to time.
+He is not entitled to any sitting fees as are
+payable to other Non-Executive Directors.
+Company's contribution to Provident Fund
+and superannuation fund or annuity fund,
+gratuity payment as per Company's rules and
+encashment of leave at the end of his tenure
+shall not be included in the computation
+of ceiling on remuneration and perquisites
+as aforesaid.
+In accordance with the provisions of the Act read with
+the guidelines issued by the Ministry of Corporate
+Affairs (MCA) vide General Circular No. 14/2020 dated
+April 8, 2020, General Circular No.17/2020 dated April
+13, 2020, General Circular No. 20/2020 dated May
+05, 2020, General Circular No. 02/2021 dated January
+13, 2021, General Circular Nos. 2/2022 and 3/2022
+dated May 05, 2022 (hereinafter referred to as "MCA
+Circulars"), the forthcoming 30th AGM of the Company
+is scheduled on Monday, August 29, 2022 through
+video conferencing ("VC") or other audio visual means
+("OAVM"). Hence, members can attend and participate
+in the ensuing 30th AGM through VC/OAVM.
+Scaling up Specialty. Leading with Care.
+297
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+11. Relevant registers as required under the Act and the
+relevant documents referred to in the Notice and the
+Explanatory Statement will be available for inspection
+electronically upto the date of 30 th AGM, and during
+the meeting hours. Those shareholders who wish to
+inspect the relevant registers/ documents electronically
+may send their requests to secretarial@sunpharma.com,
+mentioning their name, demat account number/
+folio number, e-mail id and mobile number. The
+aforementioned documents shall also be available
+for physical inspection at the registered office of the
+Company, on all working days, except Saturdays and
+Sundays, between 11:00 a.m. IST and 1:00 p.m. IST,
+upto the date of 30th AGM.
+12. The Board of Directors at its Meeting held on
+January 31, 2022 had declared an Interim Dividend
+of 7.00/- per Equity Share of 1/- each. The Interim
+Dividend on 2,398,634,970 equity shares amounting
+to ₹16,790,444,790/-, excluding interim dividend on
+700,000 equity shares amounting to ₹4,900,000/-
+which had been waived by one of the shareholders,
+was paid on February 18, 2022 to those shareholders
+who held shares as on February 10, 2022, being the
+record date for payment.
+298
+1,313.5
+221.8
+1,194.8
+969.1
+3.9
+3.81
+03.12.2002 MXN
+Sun Pharma De Mexico S.A. DE C.V.
+5
+100.00%
+645.1
+142.5
+787.6
+2,857.2
+10. Members will be able to attend the 30th AGM through
+VC/OAVM or view the live webcast by following
+instructions detailed in Note no. 26 of this Notice.
+110.7
+(b) Members holding shares in dematerialised
+mode are requested to register/ update
+their e-mail addresses with the relevant
+Depository Participants.
+(a)
+3.
+4.
+5.
+6.
+7.
+8.
+In line with MCA Circulars read with circulars issued by
+Securities Exchange Board of India (SEBI) vide SEBI/
+HO/CFD/CMD2/CIR/P/2022/62 dated May 13, 2022
+(hereinafter referred to as "SEBI Circular for AGM"), the
+Notice of 30th AGM along with the Annual Report for
+2021-22 is being sent only through electronic mode to
+those members whose e-mail addresses are registered
+with the Company's Registrar & Share Transfer Agents,
+Link Intime India Pvt. Ltd. ("RTA") / Depositories. Hard
+copies shall be sent to those members who shall request
+for the same. Members may note that the Notice of the
+30th AGM along with the Annual Report 2021-22 is also
+available for download on the website of the Company
+at www.sunpharma.com and on the websites of the
+Stock Exchanges, i.e. BSE Limited and National Stock
+Exchange of India Limited at www.bseindia.com and
+www.nseindia.com respectively and on the website of
+CDSL at www.evotingindia.com.
+Pursuant to MCA Circulars read with SEBI Circular
+for AGM, the facility to appoint proxy to attend
+and cast vote for the members is not available for
+this 30th AGM. However, in pursuance of Section
+112 and Section 113 of the Act, representatives of
+the members such as the President of India or the
+Governor of a State or body corporate can attend the
+30th AGM through VC/ OAVM and cast their votes
+through e-voting.
+Corporate members intending to appoint authorized
+representative(s) to attend and vote on their behalf at
+the 30th AGM are requested to submit to the Company
+a certified true copy of the resolution of the Board
+of Directors or other governing body of the body
+corporate authorising their representative(s) to attend
+and vote by e-mail to secretarial@sunpharma.com or
+scrutinizer@sunpharma.com before the commencement
+of the 30th AGM.
+In case of joint holders attending the 30th AGM, the
+member whose name appears as the first holder in
+the order of names as per Register of Members will
+be entitled to vote, provided the votes are not already
+cast by remote e-voting.
+The record date for determining the members eligible
+to receive Final Dividend for the year 2021-22 is
+Monday, August 22, 2022 ("Record Date").
+Shareholders who would like to express their views/ ask
+questions during the 30th AGM may register themselves
+by sending their request, mentioning their name, demat
+account number/folio number, e-mail id and mobile
+number, at secretarial@sunpharma.com latest by August
+24, 2022.
+Only registered speakers shall be allowed to express
+their views/ ask questions during the meeting for a
+maximum time of 3 (three) minutes each, once the
+floor is open for shareholder queries. The Company
+9.
+reserves the right to restrict the number of speakers
+and number of questions depending on the availability
+of time for the AGM.
+The shareholders who do not wish to speak during
+the AGM but have queries may send their queries,
+mentioning their name, demat account number/
+folio number, e-mail id and mobile number, to
+secretarial@sunpharma.com. These queries will be
+suitably replied to by the Company by e-mail.
+For receiving all communication (including Notice and
+Annual Report) from the Company electronically:
+Members holding shares in physical mode and
+who have not registered/ updated their e-mail
+addresses with the Company/ RTA are requested
+to register/ update the same by writing to the
+Company/ RTA with details of folio number and
+attaching a self-attested copy of the PAN Card at
+secretarial@sunpharma.com or to the Company's
+RTA at rnt.helpdesk@linkintime.co.in. Further, for
+updating KYC details, members are requested to
+submit Form ISR-1 to the Company's RTA.
+Relatives of Key management personnel
+475.2
+538.7
+To consider and, if thought fit, to pass the following
+resolution as a Special Resolution:
+"RESOLVED THAT pursuant to the provisions of
+Section 149, 152 and other applicable provisions,
+if any, of the Companies Act, 2013 ("the Act") read
+with Schedule IV of the Act and the Companies
+(Appointment and Qualifications of Directors)
+Rules, 2014 and Regulation 17 and other applicable
+provisions of the Securities and Exchange Board
+of India (Listing Obligations and Disclosure
+Requirements) Regulations, 2015, including any
+statutory modification(s) or re-enactment(s)
+thereof, for the time being in force), pursuant
+to the recommendation of the Nomination and
+Remuneration Committee and the Board of Directors
+of the Company, Mr. Gautam Doshi (DIN: 00004612),
+who holds office upto May 24, 2023, be and is
+hereby re-appointed as an Independent Director
+of the Company, for a second term of 5 (Five) years
+commencing from May 25, 2023 to May 24, 2028,
+who shall continue to hold office after attaining the
+age of seventy-five years during the aforesaid term,
+and he shall not be liable to retire by rotation."
+To consider and, if thought fit, to pass the following
+resolution as a Special Resolution:
+296
+9.
+8.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+"RESOLVED THAT pursuant to the provisions of
+Sections 196, 197, 198, 203 and other applicable
+provisions, if any, of the Companies Act, 2013 ("the
+Act") read with Schedule V of the Act, Regulation 17
+of Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015 and pursuant to the recommendation of the
+Nomination and Remuneration Committee and Board
+of Directors of the Company, Mr. Dilip S. Shanghvi
+(DIN: 00005588) be and is hereby re-appointed as
+the Managing Director of the Company for a further
+period of 5 (five) years effective from April 1, 2023
+to March 31, 2028 on the terms and conditions
+(including the remuneration to be paid to him in the
+event of loss or inadequacy of profits in any financial
+year during the aforesaid period) as per the draft
+agreement ("Agreement"), which is hereby specifically
+sanctioned with liberty to the Board of Directors to
+alter, vary and modify the terms and conditions of
+the said appointment and/or the Agreement, in such
+manner as may be agreed to between the Board of
+Directors and Mr. Dilip S. Shanghvi in accordance
+with the requirements of the Act and within the limits
+approved by the Members of the Company, and who
+shall continue to hold office after attaining the age of
+seventy years during the aforesaid term.
+295
+RESOLVED FURTHER THAT the Board of Directors
+of the Company or any Committee thereof, be and
+is hereby authorised to do all such acts, deeds and
+things, to execute all such documents, instruments
+and writings as may be required to give effect to this
+resolution."
+"RESOLVED THAT pursuant to the provisions of Section
+197 of the Companies Act, 2013 ("the Act"), read with
+Schedule V of the Act, and Rules made thereunder,
+pursuant to the recommendation of the Board of
+Directors of the Company, payment of commission
+of 40,00,000/- (Rupees Forty Lakhs only) each to
+Dr. Pawan Goenka, Mr. Gautam Doshi and Ms. Rama
+Bijapurkar, Independent Directors of the Company,
+for financial year ending on March 31, 2022, be and is
+hereby approved.
+To consider and, if thought fit, to pass the following
+resolution as a Special Resolution:
+RESOLVED FURTHER THAT the Board of Directors
+of the Company or any Committee thereof, be and
+is hereby authorised to do all such acts, deeds and
+things, to execute all such documents, instruments
+and writings as may be required to give effect to this
+resolution."
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+"RESOLVED THAT pursuant to the provisions of
+Section 148 and other applicable provisions, if any,
+the Companies Act, 2013 read with the Companies
+(Audit and Auditors) Rules, 2014 (including any
+statutory modification(s) or re-enactment(s) thereof,
+for the time being in force), the remuneration as set
+out in the Explanatory Statement annexed to this
+Notice, payable to M/s. K D & Co, Cost Accountants,
+Firm's Registration No. 004076, appointed as the
+Cost Auditors of the Company to conduct the audit
+of cost records maintained by the Company for the
+financial year 2022-23, be and is hereby ratified.
+of
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+"RESOLVED THAT pursuant to Section 152 of
+the Companies Act, 2013, Mr. Israel Makov (DIN:
+05299764), Non-executive & Non-Independent
+Director, retires by rotation with effect from the
+conclusion of 30th Annual General Meeting and the
+vacancy caused as such not be filled up."
+Scaling up Specialty. Leading with Care.
+223.9
+197.9
+223.9
+84.0
+53.6
+8.0
+1,431.0
+1,878.9
+1,439.0
+1,878.9
+22.7
+14.4
+22.7
+14.4
+17.5
+13.2
+5.1
+13.2
+22.6
+197.9
+7.
+52.3
+6.
+SPECIAL BUSINESS:
+100.00%
+1,572.0
+385.2
+1,572.0
+385.2
+383.7
+245.4
+ANOOP DESHPANDE
+Company Secretary
+383.7
+March 31, 2021
+Year ended
+Year ended
+March 31, 2022
+* In Million
+(Annexure 'B')
+Unconsolidated subsidiary
+Others
+245.4
+DILIP S. SHANGHVI
+Managing Director
+(DIN: 00005588)
+"RESOLVED THAT pursuant to the provisions of Section
+139, 142 and other applicable provisions, if any, of the
+Companies Act, 2013 read with the Companies (Audit
+and Auditors) Rules, 2014 (including any statutory
+modification(s) or re-enactment(s) thereof, for the
+time being in force), M/s. S R B C & Co LLP, Chartered
+Accountants (Firm's Registration No. 324982E/
+E300003) be and are hereby re-appointed as the
+Statutory Auditors of the Company for a further term
+of 5 (Five) consecutive years to hold office from the
+conclusion of this 30th Annual General Meeting until the
+conclusion of the 35th Annual General Meeting of the
+Company, at such remuneration (exclusive of applicable
+taxes and reimbursement of out of pocket expenses) as
+shall be fixed by the Board of Directors of the Company
+from time to time in consultation with them."
+To consider and re-appoint M/s. SR B C & Co LLP,
+Chartered Accountants as the Statutory Auditors of
+the Company and to authorize Board of Directors
+to fix their remuneration, and in this regard, to
+consider and if thought fit, to pass the following
+Ordinary Resolution:
+To appoint Mr. Sailesh T. Desai (DIN: 00005443),
+who retires by rotation and being eligible, has offered
+himself for re-appointment, as a Director.
+To confirm payment of Interim Dividend of *7/-
+(Rupees Seven Only) per Equity Share and to declare
+Final Dividend of ₹3/- (Rupees Three Only) per Equity
+Share for the financial year 2021-22.
+To receive, consider and adopt the audited
+consolidated financial statements of the Company
+for the financial year ended March 31, 2022 and
+the report of the Auditors thereon.
+b.
+a. To receive, consider and adopt the audited
+standalone financial statements of the Company
+for the financial year ended March 31, 2022
+and the reports of the Board of Directors and
+Auditors thereon.
+4.
+3.
+2.
+1.
+ORDINARY BUSINESS:
+NOTICE is hereby given that the Thirtieth (30th) Annual
+General Meeting of the members of Sun Pharmaceutical
+Industries Limited will be held on Monday, August 29,
+2022 at 3.00 p.m. IST (Indian Standard Time) through
+Video Conferencing ("VC") / Other Audio-Visual Means
+("OAVM") to transact the following business:
+Notice
+NOTICE OF ANNUAL GENERAL MEETING
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 30, 2022
+SAILESH T. DESAI
+Wholetime Director
+(DIN: 00005443)
+5.
+74.1
+0.0
+1.1
+Key management personnel
+Others
+Payables
+Key management personnel
+Associates (5,623/-)
+Others
+Receivables
+Security deposit given
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+Balance outstanding as at end of the year
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+289
+Scaling up Specialty. Leading with Care.
+* Includes conversion of Advance (capital advance and advance towards supply of goods/services) to Loan (convertible note).
+36.5
+4.2
+FOR THE YEAR ENDED MARCH 31, 2022
+Others
+Security deposit received
+Others
+949.1
+17.4
+0.0
+413.0
+196.7
+430.4
+196.7
+In Million
+As at
+March 31, 2021
+March 31, 2022
+As at
+(Annexure 'B')
+Associates
+Advance (Includes capital and supply of goods/services)
+Others
+Lease liability
+Associates
+Loan given
+200.0
+250.0
+236.5
+254.2
+0.1
+7.9
+7.9
+7.7
+1,073.2
+1,080.9
+0.0
+17.4
+140.6
+44.9
+158.0
+276.0
+276.8
+276.0
+276.8
+8.8
+1.3
+0.1
+838.4
+0.9
+31.2
+35.0
+61.8
+255.6
+257.2
+290.6
+319.0
+242.3
+151.9
+242.3
+151.9
+8.9
+9.6
+8.9
+9.6
+22.7
+31.2
+22.7
+0.9
+1,025.6
+275.1
+3,163.1
+Dusa Pharmaceuticals, Inc.
+29
+0.5
+2,328.9
+0.0
+75.80
+20.09.2010 USD
+28 Taro International Ltd.
+19.12.2012 USD
+1.5
+20.09.2010 EUR
+Taro Pharmaceuticals Europe B.V.
+27
+-
+28,246.8
+28,246.8
+0.0
+84.20
+75.80
+0.8
+18,039.3
+4,423.4
+90.6
+78.48%
+547.9
+78.48%
+0.2
+0.0
+139.4
+78.48%
+(0.1)
+78.48%
+78.48%
+5,416.2
+(611.5)
+(0.1)
+0.2
+687.3
+4,514.0
+1,886.6
+5,706.7
+542.3
+368.1
+3.6
+5.6
+2,697.0
+18,582.4
+75.80
+100.00%
+20.09.2010 USD
+26
+1.00
+09.03.2012 INR
+Sun Pharma Laboratories Limited
+22
+100.00%
+(0.1)
+(0.1)
+400.5
+100.00%
+23.1
+3.3
+635.4
+905.5
+0.2
+404.2
+0.0
+(0.3)
+0.1
+(19.8)
+251,971.8 270,530.4
+23
+Taro Pharmaceutical Industries Ltd. (Taro)
+78.48%
+100.00%
+33,354.9 87,532.5 34,676.4 6,098.1 28,578.3
+9,767.3 11,334.9 (3,702.6) 246.0 (3,948.6)
+62,140.4 21,888.2
+985.0 4,431.2
+646.8 27,374.9
+(437.3) (174.2)
+18,158.1
+129,671.6 134,266.0 4,542.8
+112,826.9 147,783.7 6,714.1
+(6,949.3) 39,144.5 46,082.8
+11.0
+75.80
+20.09.2010 USD
+Taro Pharmaceuticals U.S.A., Inc.
+25
+28,242.7
+75.80
+20.09.2010 USD
+Taro Pharmaceuticals Inc.
+24
+51.6
+75.80
+20.09.2010 USD
+Taro Pharmaceuticals North America, Inc.
+30
+Faststone Mercantile Company Private Limited 01.04.2012 INR
+1.00
+292
+22
+291
+Scaling up Specialty. Leading with Care.
+(Formerly known as Softdeal Trading Company
+Private Limited)
+100.00%
+456.4
+FORM AOC - 1
+154.3
+2,589.3
+1,000.6
+100.00%
+(0.1)
+(0.1)
+0.0
+100.00%
+610.7
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/ joint venture
+* In Million
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Turnover
+Profit
+Profit
+Investment
+Other than
+Investment in
+Subsidiary
+subsidiary
+31.08.2012 INR
+10.06.2013 CHF
+Sun Pharma Switzerland Ltd.
+36
+Universal Enterprises Private Limited
+35
+Total
+Total
+Assets Liabilities
+Capital Reserve
+acquisition Reporting Closing
+Currency Rate
+of
+No.
+Name of the Subsidiary Company
+Sr.
+Date of
+0.0
+0.0
+0.0
+0.0
+0.4
+673.7
+01.04.2012 INR
+Skisen Labs Private Limited
+33
+0.1
+1.00
+01.04.2012 INR
+Realstone Multitrade Private Limited
+32
+5,235.0
+0.1
+1.00
+01.04.2012 INR
+Neetnav Real Estate Private Limited
+31
+3.3
+3.2
+0.1
+1.00
+1.00
+163.6
+01.04.2012
+1,140.5
+100.00%
+0.7
+0.3
+1.0
+1.6
+48.0
+100.00%
+0.1
+0.0
+0.1
+0.0
+321.4
+5,556.5
+2.3
+0.0
+2.2
+(164.0)
+466.7
+0.1
+1.00
+INR
+34 Softdeal Pharmaceutical Private Limited
+/ (Loss)
+before
+Taxation
+12.01.2012 INR
+21
+56.76
+11.03.2008 AUD
+Sun Pharmaceutical Industries (Australia) Pty
+12
+75.80
+05.08.2005 USD
+Alkaloida Chemical Company Zrt.
+6,449.6
+6,765.7 46,578.7 54,078.3
+3,953.4 (4,858.6) 6,150.3
+11
+20.09.2010 USD
+The Taro Development Corporation
+10
+2,925.2
+(392.6)
+For and on behalf of the Board of Directors of
+Sun Pharmaceutical Industries Limited
+4,069.5
+75.80
+6,535.1
+85.5
+733.9
+7,055.5
+396.1
+(3,668.8) (666.3)
+22.04.2007 ILS
+Aditya Acquisition Company Ltd.
+13
+Limited
+100.00%
+(1,162.6)
+99.99%
+420.6
+24.1
+444.7
+(1,162.6)
+3,311.9
+2,639.8
+776.9
+100.00%
+(3,002.5)
+100.00%
+399.0
+(2.9)
+1,852.2
+23.86
+2,609.9
+24.11.2008 USD
+0.93
+OOO "Sun Pharmaceutical Industries" Limited 12.11.2007 RUB
+7
+100.00%
+(14.5)
+(14.5)
+188.6
+0.0
+1.8
+0.0
+20.35
+27.06.2006 PEN
+Sun Pharmaceutical Peru S.A.C.
+6
+75.00%
+209.5
+(186.8)
+(82.2)
+21.9
+104.1
+Chattem Chemicals Inc.
+9
+100.00%
+0.0
+0.0
+0.0
+0.0
+0.0
+0.0
+0.00
+06.11.2011 VES
+Sun Pharma De Venezuela, C.A.
+8
+100.00%
+91.6
+23.6
+115.2
+75.80
+0.0
+(0.9)
+6.4
+100.00%
+(0.2)
+(0.2)
+13.3
+100.00%
+49.7
+22.2
+3,461.1 17,660.2
+71.9
+100.00%
+74.1
+21.2
+95.3
+3,188.0
+1,026.7
+1,373.1
+279.8
+16,245.1
+6,949.6
+759.7
+1,373.1
+284.1
+14,660.5
+8,998.3
+1,810.8
+2,773.8
+(1,118.3)
+(1,118.3)
+100.00%
+(514.0)
+12.7
+1.46
+08.12.2011 PHP
+Sun Pharma Philippines, Inc.
+20
+Limited
+100.00%
+1.8
+0.5
+2.3
+990.6
+100.00%
+329.6
+6.3
+335.9
+9,058.6
+1,020.0
+31.1
+0.62
+01.06.2021 JPY
+(2.1)
+2.1
+84.20
+11.08.2008 EUR
+Sun Pharmaceuticals Germany GmbH
+15
+1,221.9
+193.7
+1.5
+84.20
+29.06.2007 EUR
+Sun Pharmaceutical Industries (Europe) B.V.
+14
+100.00%
+(6.3)
+(6.3)
+7.3
+16
+Caraco Pharmaceuticals Private Limited
+Sun Pharmaceuticals SA (Pty) Ltd
+5.23
+Sun Pharma Japan Technical Operations
+19
+1,950.5
+65.6
+98.2
+0.62
+01.03.2012 JPY
+Sun Pharma Japan Ltd.
+18
+(2,513.2)
+928.6
+75.80
+13.03.2011 USD
+Sun Laboratories FZE
+17
+4.3
+0.0
+22.10.2008 ZAR
+96.81%
+Provision
+for
+after
+152.1
+0.93
+24.03.2015 RUB
+AO Ranbaxy
+58
+985.4
+75.80
+59
+24.03.2015 USD
+57
+75.80
+24.03.2015 USD
+Ranbaxy Signature LLC
+56
+18.1
+75.80
+Ranbaxy Inc.
+Sun Pharma Laboratorios, S.L.U (formerly
+24.03.2015 EUR
+84.20
+3.6
+7,583.9
+1,485.9
+844.4
+32,720.6
+86.16%
+(442.4)
+3.2
+(439.2)
+1,287.0
+100.00%
+24.8
+10.8
+35.6
+607.6
+118.0
+3,047.5
+(984.8) 2,070.0
+(12.3) 1,094.1
+(18,059.4) 14,679.3
+961.7
+(18,700.4)
+1,163.3
+488.2
+84.2
+24.03.2015 USD
+(16,799.4)
+5,265.8
+712.0
+Ohm Laboratories, Inc.
+262.0
+100.00%
+(1.0)
+(1.0)
+0.3
+29.9
+1,368.4
+3,183.2
+8.7
+4,075.9
+(29.9)
+(349.0)
+99.48
+24.03.2015 GBP
+Sun Pharma UK Limited (Formerly known as
+51
+8.7
+4.15
+24.03.2015 EGP
+2,163.8
+119.9
+22.8
+97.1
+2.28
+24.03.2015 THB
+Ranbaxy (Thailand) Co., Ltd.
+54
+383.3
+187.7
+77.6
+7.3
+0.18
+24.03.2015 NGN
+Ranbaxy Nigeria Limited
+53
+18.10
+24.03.2015 PLN
+Ranbaxy (Poland) SP. Z O.O.
+52
+Ranbaxy (U.K.) Limited)
+100.00%
+55
+(958.1)
+915.6
+3.4
+3,950.4
+136.1
+60.51
+24.03.2015 CAD
+Sun Pharma Canada Inc. (Formerly known as
+Ranbaxy Pharmaceuticals Canada Inc.)
+63
+100.00%
+129.0
+229.0
+56.8
+3,492.0
+2,520.3
+100.00%
+106.8
+164.4
+271.2
+3,490.9
+185.8
+1,571.6
+1,206.5
+2,189.4
+430.5
+44.0
+3,593.6
+1,069.6
+14,723.7
+5,161.3 1,375.8
+3,222.6
+5,772.8
+11,171.4 14,819.2
+23,401.4 89,631.6
+425.2
+60,457.4
+75.80
+24.03.2015 USD
+Sun Pharma (Netherlands) B.V. (Formerly
+65
+17.01
+24.03.2015 RON
+Terapia SA
+64
+100.00%
+26.3
+26.3
+3,842.3
+95.67%
+336.1
+95.9
+100.00%
+26.2
+8.7
+100.00%
+367.3
+100.00%
+(70.2) (19,007.3)
+102.0
+67.50%
+(6.9)
+100.00%
+(4,565.5) (18,841.9)
+100.00%
+16.4
+13.0
+29.4
+(23,407.4)
+(6.9)
+(19,077.5)
+469.3
+34.9
+5,794.4
+1,434.2
+139.6
+Laboratorios Ranbaxy, S.L.U.)
+Rexcel Egypt LLC
+60
+24.03.2015 MYR
+432.0
+2,746.3
+498.0
+2,295.6
+1,648.0
+(1,664.0) 2,454.2
+(569.5) 2,938.5
+987.7
+56.76
+24.03.2015 AUD
+Sun Pharma ANZ Pty Ltd
+62
+275.9
+15.89
+24.03.2015 BRL
+Ranbaxy Farmaceutica Ltda.
+61
+149.6
+18.02
+Ranbaxy (Malaysia) SDN. BHD.
+/ (Loss)
+55
+known as Ranbaxy Egypt Ltd)
+671.7
+6,659.0
+601.8
+341.8
+102.5
+2.57
+24.03.2015 UAH
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+41
+737.4
+5,660.1
+588.4
+84.20
+24.03.2015 EUR
+Basics GmbH
+40
+(65.8)
+0.1
+0.66
+410.5
+636.1
+16.4
+5.8
+7.85
+24.03.2015 MAD
+Sun Pharmaceuticals Morocco LLC
+42
+100.00%
+100.00%
+119.8
+26.7
+146.5
+1,048.3
+157.5
+33.6
+16.3
+49.9
+4,050.5
+100.00%
+10.6
+13.06.2014 KES
+96.0
+Sun Pharma East Africa Limited
+100.00%
+1.9
+8.3
+(1.8)
+(0.1)
+(0.1)
+3.1
+8.2
+51.5
+0.6
+1.00
+82.02
+75.80 259,291.3
+06.08.2015 USD
+Sun Pharma Holdings
+37
+Taxation
+Taxation
+Proposed
+Dividend
+4.5
+8.2
+(2.7)
+0.0
+(2.7)
+116.8
+116.8
+227.4
+-
+2,674.1 2,674.1
+75.80
+15.07.2014 USD
+PI Real Estate Ventures, LLC
+38
+100.00%
+(14.7)
+(14.7)
+969.1
+(59,560.5) 200,699.9
+100.00%
+100.00%
+% of
+Shareholding
+39
+56.4
+43
+Sun Pharmaceutical Industries S.A.C.
+24.03.2015 ZAR
+Ranbaxy South Africa (Pty) Ltd (consolidated)
+24.03.2015 ZAR
+Ranbaxy Pharmaceuticals (Pty) Ltd
+ཅཆེར
+49
+48
+5.23
+5.23
+47
+(103.9)
+(24.4)
+(128.3)
+3,359.1
+2,014.4
+2,017.3
+(1.3)
+100.00%
+Sun Pharma Egypt Limited LLC (Formerly
+24.03.2015 EGP
+4.15
+100.00%
+(55.4)
+(55.4)
+490.4
+130.5
+100.00%
+111.1
+27.9
+139.0
+3,237.8
+643.6
+100.00%
+282.1
+282.1
+7,315.4
+3,658.1 (1,149.3) 5,269.4 2,760.6
+1,313.0 2,048.1
+(455.9)
+628.6
+91.5
+954.0
+4.2
+84.20
+24.03.2015 EUR
+46 Sun Pharma Italia SRL (Formerly known as
+Ranbaxy Italia S.P.A.)
+800.4
+38.2
+33.1
+71.3
+2,385.6
+2,169.4
+2,321.8
+626.3
+3,192.9
+151.0
+3,039.9
+99.48
+24.03.2015 GBP
+Sun Pharma Holdings UK Limited (Formerly
+44
+(262.5)
+88.4
+20.35
+24.03.2015 PEN
+819.6
+50
+(37.5)
+100.00%
+100.00%
+100.00%
+(319.6)
+(319.6)
+2,767.9
+4,113.3
+870.7
+2,100.6 (5,343.2)
+84.20
+24.03.2015 EUR
+Sun Pharma France (Formerly known as
+Ranbaxy Pharmacie Generiques)
+45
+45
+known as Ranbaxy Holdings (U.K.) Limited)
+100.00%
+(0.7)
+(0.7)
+2.0
+(37.5)
+294
+Members who have yet not encashed their dividend
+warrants/demand drafts, for the financial year ended
+March 31, 2015 and onwards are requested to
+approach the Company's Registrar & Share Transfer
+Agents, Link Intime India Pvt. Ltd. at C-101, 247 Park,
+L.B.S. Marg, Vikhroli (West), Mumbai - 4 400083,
+Maharashtra, India, to claim their unpaid Dividend. The
+Dividend declared for the financial year ended March
+31, 2015 and remaining unpaid and unclaimed, will
+become due for transfer to the Investor Education and
+Protection Fund on November 29, 2022. Pursuant to
+the provisions of Investor Education and Protection
+Fund Authority (Accounting, Audit, Transfer and
+Refund) Rules, 2016, the Company has uploaded the
+details of unpaid and unclaimed amounts lying with the
+Company as on August 31, 2021 (date of the last Annual
+General Meeting of the Company) on the website of
+the Company viz., www.sunpharma.com under head
+"Investor" sub-head "Shareholder Information" as well
+as on the website of the Ministry of Corporate Affairs
+viz., www.iepf.gov.in.
+Item No. 5:
+(xiii) Once you "CONFIRM" your vote on the resolution,
+you will not be allowed to modify your vote.
+(xiv) You can also take a print of the votes cast by
+clicking on "Click here to print" option on the
+Voting page.
+If a demat account holder has forgotten the login
+password then Enter the User ID and the image
+verification code and click on Forgot Password & enter
+the details as prompted by the system.
+(xv) Additional Facility for Non - Individual
+Shareholders and Custodians -For Remote
+Voting only.
+• Non-Individual shareholders (i.e. other than
+Individuals, HUF, NRI etc.) and Custodians are
+required to log on to www.evotingindia.com and
+register themselves in the "Corporates" module.
+• A scanned copy of the Registration Form
+bearing the stamp and sign of the entity should
+be e-mailed to helpdesk.evoting@cdslindia.com.
+• After receiving the login details a Compliance
+User should be created using the admin login
+and password. The Compliance User would be
+able to link the account(s) for which they wish
+to vote on.
+• A scanned copy of the Board Resolution and
+Power of Attorney (POA) which they have
+issued in favour of the Custodian, if any, should
+be uploaded in PDF format in the system for
+the scrutinizer to verify the same.
+• Alternatively Non Individual shareholders
+are required to send the relevant Board
+Resolution/ Authority letter etc., to the
+Scrutinizer and to the Company at the e-mail
+address viz; secretarial@sunpharma.com, if
+they have voted from individual tab & not
+uploaded same in the CDSL e-voting system
+for the scrutinizer to verify the same.
+Notice
+Process for shareholders to register/ update their e-mail
+addresses/ mobile nos. with the depositories/ RTA:
+1.
+2.
+3.
+-
+For Physical shareholders – please provide
+necessary details like Folio No., Name of
+shareholder, scanned copy of the share
+certificate (front and back), PAN (self attested
+scanned copy of PAN card), AADHAR (self
+attested scanned copy of Aadhar Card) by
+e-mail to Company/RTA e-mail id.
+For Demat shareholders Please update your
+e-mail id & mobile no. with your respective
+Depository Participant (DP).
+For Individual Demat shareholders - Please
+update your e-mail id & mobile no. with your
+respective Depository Participant (DP) which
+is mandatory while e-voting & joining virtual
+meetings through Depository.
+(xvii) Instructions for shareholders attending the 30th
+AGM through VC/OAVM & E-voting during the
+30th AGM are as under:-
+1.
+2.
+3.
+4.
+5.
+6.
+The procedure for attending meeting &
+e-voting on the day of the AGM is same
+as the instructions mentioned above for
+e-voting.
+The link for VC/OAVM to attend meeting will
+be available where the EVSN of Company
+will be displayed after successful login as
+per the instructions mentioned above for
+e-voting.
+Shareholders who have voted through
+remote e-voting will be eligible to attend the
+AGM. However, they will not be eligible to
+vote at the 30th AGM.
+Shareholders are encouraged to join
+(xii) After selecting the resolution you have decided
+to vote on, click on "SUBMIT". A confirmation box
+will be displayed. If you wish to confirm your vote,
+click on "OK", else to change your vote, click on
+"CANCEL" and accordingly modify your vote.
+(xi) Click on the "RESOLUTIONS FILE LINK" if you
+wish to view the entire Resolution details.
+(x) On the voting page, you will see "RESOLUTION
+DESCRIPTION" and against the same the option
+"YES/NO" for voting. Select the option YES or
+NO as desired. The option YES implies that you
+assent to the Resolution and option NO implies
+that you dissent to the Resolution.
+(ix) Click on the EVSN no. 220719016 for Sun
+Pharmaceutical Industries Limited.
+• The shareholders should log on to the e-voting website www.evotingindia.com.
+• Click on "Shareholders" module.
+• Now enter your User ID
+a.
+For CDSL: 16 digits beneficiary ID
+b.
+For NSDL: 8 Character DP ID followed by 8 Digits Client ID
+C.
+Shareholders holding shares in Physical Form should enter Folio Number registered with the Company.
+• Next enter the Image Verification as displayed and Click on Login
+• If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier
+e-voting of any company, then your existing password is to be used.
+Scaling up Specialty. Leading with Care.
+303
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+the Meeting through Laptops/IPads for
+better experience.
+304
+PAN
+Dividend
+Bank
+Details
+OR Date
+of Birth
+(DOB)
+For Physical shareholders and shareholders
+other than individual holding shares in Demat.
+Enter your 10 digit alpha-numeric *PAN
+issued by Income Tax Department
+(Applicable for both demat shareholders
+as well as physical shareholders)
+•
+Shareholders who have not updated
+their PAN with the Company/
+Depository Participant are requested
+to use the sequence number/e-
+voting code sent by Company/RTA or
+contact Company/RTA.
+Enter the Dividend Bank Details or Date
+of Birth (in dd/mm/yyyy format) as
+recorded in your demat account or in the
+company records in order to login.
+•
+If both the details are not recorded
+with the depository or company
+please enter the member id / folio
+number in the Dividend Bank details
+field as mentioned in instruction (v).
+(vi) After entering these details appropriately, click on
+"SUBMIT" tab.
+(vii) Shareholders holding shares in physical form
+will then directly reach the Company selection
+screen. However, shareholders holding shares in
+demat form will now reach 'Password Creation'
+menu wherein they are required to mandatorily
+enter their login password in the new password
+field. Kindly note that this password is to be
+also used by the demat holders for voting for
+resolutions of any other company on which they
+are eligible to vote, provided that company opts
+for e-voting through CDSL platform. It is strongly
+recommended not to share your password with
+any other person and take utmost care to keep
+your password confidential.
+(viii) For shareholders holding shares in physical form,
+the details can be used only for e-voting on the
+resolutions contained in this Notice.
+• If you are a first time user follow the steps
+given below:
+(v) Login method for e-voting and joining virtual meetings for Physical shareholders and shareholders other than
+individual holding in Demat form.
+Shareholders will be required to allow
+Please note that participants connecting
+from Mobile Devices or Tablets or through
+Laptop connecting via mobile hotspot
+may experience Audio/Video loss due to
+fluctuation in their respective network. It is
+therefore recommended to use stable Wi-Fi
+or LAN Connection to mitigate any kind of
+aforesaid glitches.
+The above commission shall be in addition to sitting fees
+payable to the Independent Director(s) for attending
+meetings of the Board/ Committees and reimbursement
+of expenses, if any for participation in the Board/
+Committee meetings.
+The Statement of Information for the members pursuant to
+Section II of Part II of Schedule V to the Act is annexed to
+this Notice.
+The Board recommends the Resolution at Item No. 7 of the
+Notice for the approval of the Members as a Special
+Resolution.
+All the Independent Directors of the Company, i.e
+Mr. Gautam Doshi, Dr. Pawan Goenka and Ms. Rama
+Bijapurkar and their respective relatives are deemed to
+be concerned or interested in resolution as set out in
+Item no. 7 of this Notice. Other than the Independent
+Directors, none of the other Directors or Key Managerial
+Personnel or their relatives are in anyway concerned or
+interested in this resolution.
+Item No. 8:
+Mr. Gautam Doshi (DIN: 00004612) was appointed as the
+Independent Director of the Company at its 26th Annual
+General Meeting held on September 26, 2018 for a term of 5
+(five) years from May 25, 2018 upto May 24, 2023 under the
+provisions of Section 149 and Section 152 of the Act. Since
+he shall complete one term in May 2023, he is eligible for re-
+appointment for second term as Independent Director.
+The performance evaluation of Mr. Gautam Doshi was
+conducted by the Board of Directors on the basis of
+various criteria as approved by the Nomination and
+Remuneration Committee and adopted by the Board.
+Accordingly, based on aforesaid performance evaluation,
+the Nomination and Remuneration Committee and the
+Board of Directors at its meetings held on May 27, 2022
+and May 30, 2022 respectively, have recommended the
+re-appointment of Mr. Gautam Doshi as an Independent
+Director of the Company for a second term of 5 (five)
+years, from May 25, 2023 upto May 24, 2028, and he shall
+not be liable to retire by rotation. As per the provisions of
+Section 149 of the Act, members' approval is required by
+way of Special Resolution for his re-appointment.
+The Company has received declaration from Mr. Gautam
+Doshi confirming that he meets with the criteria of
+independence as prescribed under Section 149(6) of
+the Act, and under Securities and Exchange Board of
+India (Listing Obligations and Disclosure Requirements)
+Regulations, 2015. Further, in the opinion of the Board, he
+fulfils all the conditions specified in the Act, for such re-
+appointment.
+The draft letter of appointment of Mr. Gautam Doshi,
+setting out the terms and conditions of appointment is
+being made available for inspection by any member as
+detailed in point no. 11 of Notes to Notice of this 30th AGM.
+The brief profile of Mr. Gautam Doshi is provided under
+heading "Profile of Directors" forming part of this Notice.
+Further, Mr. Gautam Doshi shall attain the age of 75 years
+during his second term of appointment. In compliance with
+Regulation 17 (1A) of the Securities and Exchange Board
+of India (Listing Obligations and Disclosure Requirements)
+Regulations, 2015, the continuation of Directorship of a
+person who has attained the age of 75 years shall be subject
+to the approval of the members by special resolution.
+Accordingly, approval of members is also being sought for
+the same.
+The Board recommends the Resolution as set out at Item
+no. 8 of the Notice for approval of the Members as a
+Special Resolution.
+None of the Directors or Key Managerial Personnel of the
+Company and their relatives, other than Mr. Gautam Doshi
+himself, to whom this resolution pertains and his relatives,
+are in any way concerned or interested in the resolution as
+set out at Item no. 8 of this Notice.
+Scaling up Specialty. Leading with Care.
+307
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Item No. 9:
+At the 25th Annual General Meeting of the Company held on
+September 26, 2017, Mr. Dilip S. Shanghvi was re-appointed
+as Managing Director by way of a special resolution for a
+period of 5 (five) years effective from April 1, 2018 upto
+March 31, 2023. The members, by way of a special resolution
+at the 25th AGM and 27th AGM, had approved the maximum
+remuneration to be paid to Mr. Dilip S. Shanghvi, Managing
+Director for a period of 3 years with effect from April 1, 2018
+to March 31, 2021, and for a remaining period of his present
+term of appointment with effect from April 1, 2021 to March
+31, 2023, respectively, including the remuneration to be
+paid to him in event of loss or inadequacy of profits in any
+financial year during the aforesaid period.
+On the recommendation of the Nomination and
+Remuneration Committee and the Board of Directors at
+its meetings held on May 27, 2022 and May 30, 2022
+respectively, Mr. Dilip S. Shanghvi was re-appointed as the
+Managing Director of the Company for a further period of
+5 (five) years from the expiry of his present term, i.e. from
+April 1, 2023 upto March 31, 2028, and his remuneration
+was approved for the aforementioned period, subject to the
+approval of the members.
+The maximum limit of remuneration approved by the
+members for his present term of appointment is * 8.10 crores
+per annum, within which limit the Nomination and
+Remuneration Committee/Board approved the remuneration
+for each financial year. The present actual remuneration
+paid/payable to Mr. Dilip S. Shanghvi for the year 2021-22
+is * 5.05 crores. It is proposed to the members that the
+maximum limit of 8.10 crores per annum be continued
+as his maximum remuneration for his appointment from
+April 1, 2023 upto March 31, 2028 including the minimum
+remuneration to be paid to him in event of loss or inadequacy
+of profits in any financial year during the aforesaid period.
+The aforesaid maximum remuneration has also been
+recommended and approved by the Nomination and
+Remuneration Committee and the Board of Directors of
+the Company.
+Mr. Dilip S. Shanghvi, Managing Director of the Company
+is highly experienced and controls the affairs of the
+Company as a whole under the direction of the Board of
+Directors of the Company. He has successfully and in a
+sustained way contributed significantly towards growth in
+performance of the Company. He has extensive experience
+in the pharmaceutical industry and is actively involved
+inter alia in international pharmaceutical markets, business
+strategy, business development functions of the Company.
+Mr. Shanghvi has won numerous awards and recognitions.
+His brief profile is provided under heading "Profile of
+Directors" forming part of this Notice.
+The brief terms of re-appointment including remuneration
+of Mr. Dilip S. Shanghvi, as recommended by the
+Nomination and Remuneration Committee and approved
+by the Board of Directors are provided in the resolution
+set out at Item No. 9 of this Notice.
+Mr. Dilip S. Shanghvi fulfils all the conditions given under
+Section 196 and Schedule V of the Act for being eligible
+for his re-appointment. He is not disqualified under Section
+164 from being appointed as the Director. In compliance
+with the requirements of Section 196 of the Act, since
+Mr. Dilip S. Shanghvi shall attain the age of 70 years
+during the aforesaid term of appointment, the resolution
+set out at Item No. 9 of this Notice is recommended as a
+Special Resolution.
+Pursuant to provisions of Section 197 of the Act, the
+Company may pay remuneration in excess of the limits
+prescribed therein, if the approval of the members is
+obtained by way of Special Resolution. Additionally, under
+Regulation 17 (6) (e) of Securities and Exchange Board
+of India (Listing Obligations & Disclosure Requirements)
+Regulations 2015 (as amended), members approval by
+way of Special Resolution is required to pay remuneration
+to a Director who is a promoter of the Company, in case,
+such annual remuneration is 2.5% of the net profit of the
+Company or 5 crores, whichever is higher. Since Mr. Dilip
+S. Shanghvi is also the promoter of the Company, members'
+approval is sought by way of special resolution.
+Since members' approval for payment of remuneration to
+Mr. Dilip S. Shanghvi for the aforesaid proposed term of his
+appointment is being sought by way of special resolution,
+the limits prescribed under Schedule V of the Act shall
+not be applicable to the Company in case there is a loss/
+inadequacy of profits during his term of appointment.
+However, the Statement of Information for the members
+pursuant to Section II of Part II of Schedule V to the Act is
+annexed to this Notice.
+This explanatory statement and the Resolution set out at
+Item No. 9 of this Notice may also be read and treated as
+disclosure in compliance with the requirements of Section
+190 of the Companies Act, 2013.
+The copy of the draft agreement with respect to the
+re-appointment and term of remuneration, to be entered
+into with Mr. Dilip S. Shanghvi is available for inspection by
+any member as detailed in point no. 11 of Notes to Notice
+of this 30th Annual General Meeting.
+The Board recommends the Resolution as set out at Item
+no. 9 of the Notice for approval of the Members as a
+Special Resolution.
+308
+The Nomination and Remuneration Committee had in its
+meeting held on May 27, 2022 had taken up the agenda
+for payment of commission to IDs, however, since only
+Mr. Israel Makov, being non-interested Committee member
+at the meeting, the decision regarding the amount to be
+paid was referred for approval of the Board. The Board of
+Directors at their meeting held on May 30, 2022 approved
+the payment of commission of 40,00,000/- to each
+Independent Director, that is, Mr. Gautam Doshi, Dr. Pawan
+Goenka and Ms. Rama Bijapurkar for FY 2021-22, subject to
+the approval of the members.
+The shareholders, at the 29th AGM, had passed a resolution
+for payment of commission to the Non-Executive Directors
+of the Company, within the maximum limit of 1% of the net
+profits, for a period of 5 years from financial year 2021-22
+to financial year 2025-26. However, in view of loss incurred
+by the Company in FY 2021-22 on account of exceptional
+items, as detailed in Statement of Information for the
+members pursuant to Section II of Part II of Schedule V
+to the Act forming part of this Notice, specific approval of
+the shareholders is sought by way of Special Resolution
+pursuant to requirements under Schedule V of the Act.
+Notice
+306
+7.
+8.
+Only those shareholders, who are present
+in the AGM through VC/OAVM facility and
+have not casted their vote on the Resolutions
+through remote e-voting and are otherwise
+not barred from doing so, shall be eligible
+to vote through e-voting system available
+during the AGM.
+If any votes are cast by the shareholders
+through the e-voting available during the
+AGM and if the same shareholders have not
+participated in the meeting through VC/
+OAVM facility, then the votes cast by such
+shareholders shall be considered invalid as
+the facility of e-voting during the meeting is
+available only to the shareholders attending
+the meeting.
+(xviii) In case you have any queries or issues regarding
+attending AGM & e-voting from the e-voting
+System, you may refer the Frequently Asked
+Questions ("FAQs") and e-voting manual available
+at www.evotingindia.com, under help section or
+write an e-mail to helpdesk.evoting@cdslindia.com
+or call at toll free no.: 1800 22 55 33.
+All grievances connected with the facility for
+voting by electronic means may be addressed to
+Mr. Rakesh Dalvi, Sr. Manager, (CDSL) Central
+Depository Services (India) Limited, A Wing,
+25th Floor, Marathon Futurex, Mafatlal Mill
+Compounds, NM Joshi Marg, Lower Parel
+(East), Mumbai - 400013 or send an e-mail
+to helpdesk.evoting@cdslindia.com or call at
+toll free no.: 1800 22 55 33.
+27. The Scrutinizer will, immediately after the conclusion
+of voting at the 30th AGM, start scrutinizing the
+votes cast at the Meeting along with remote e-voting
+and prepare a consolidated Scrutinizer's Report and
+submit thereafter to the Chairman of the Meeting or
+any person authorised by him in writing. The result
+declared along with the consolidated Scrutinizer's
+Report will be placed on the Company's website at
+www.sunpharma.com and on the website of CDSL
+at www.evotingindia.com, as well as displayed
+on the notice board at the Registered Office and
+Corporate Office of the Company, within 48 hours
+of the conclusion of the Meeting. The Company will
+simultaneously forward the results to BSE Limited and
+National Stock Exchange of India Limited, where the
+shares of the Company are listed.
+Scaling up Specialty. Leading with Care.
+305
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013
+As required under Section 102 of the Companies Act, 2013
+("the Act"), the following Explanatory Statement sets out
+material facts relating to the Ordinary/ Special Business as
+set out at Item Nos. 4 to 10 of the accompanying Notice
+dated August 03, 2022.
+Item No. 4:
+The shareholders of the Company, at the 25th AGM, had
+appointed M/s. S R B C & Co. LLP, Chartered Accountants
+(Registration No. 324982E / E300003) as the Statutory
+Auditors of the Company for a term of 5 (five) consecutive
+years to hold office until the conclusion of the 30th AGM of
+the Company at such remuneration (exclusive of applicable
+taxes and reimbursement of out of pocket expenses)
+as fixed by the Board of Directors of the Company in
+consultation with them.
+Camera and use Internet with a good speed
+to avoid any disturbance during the meeting.
+Under the provisions of Section 139(2) of the Act, the
+Company is permitted to appoint the aforementioned
+Statutory Auditors for one more term of 5 (five) years.
+The Audit Committee and the Board of Directors at their
+respective meetings held on May 29, 2022 and May 30,
+2022, have recommended the appointment of M/s. S R
+BC & Co. LLP, Chartered Accountants for a second term
+of 5 (five) years from the conclusion of this 30th AGM
+upto the conclusion of 35th AGM of the Company, at such
+remuneration as may be fixed by the Board of Directors in
+consultation with them.
+The Board recommends the Resolution as set out at item
+no. 4 of the Notice for approval of the Members as an
+Ordinary Resolution.
+None of the Directors or Key Managerial Personnel or
+their relatives are in anyway concerned or interested in
+the resolution as set out in Item no. 4 of this Notice.
+Under the provisions of Section 152 of the Act, at least
+one-third of the directors who are liable to retire by
+rotation, shall retire at every Annual General Meeting of
+the Company. Mr. Israel Makov, Non-executive Director,
+and Chairman of the Board, retires by rotation at this
+30th AGM, and has not offered himself for re-appointment.
+The Company does not propose to fill up the vacancy at this
+30th AGM or any adjournment thereof. Hence, as required
+under Section 152 of the Act, an ordinary resolution
+is proposed not to fill up the vacancy caused by the
+retirement of Mr. Israel Makov.
+The Board recommends the Resolution as set out at Item
+no. 5 of the Notice for approval of the Members as an
+Ordinary Resolution.
+Except Mr. Israel Makov, none of the Directors and Key
+Managerial Personnel of the Company and their relatives
+are concerned or interested, in the resolution as set out in
+Item No. 5 of this Notice.
+Item No. 6:
+M/s. K D & Co, Cost Accountants, have been appointed
+as the Cost Auditors by the Board of Directors of the
+Company on recommendation of the Audit Committee, for
+conducting audit of cost records and accounts maintained
+by the Company pertaining to the formulations and bulk
+drugs activities of the Company for the financial year
+ending March 31, 2023 at a remuneration of *27,82,500/-
+(Rupees Twenty-Seven Lakhs Eighty-Two Thousand Five
+Hundred only) per annum plus reimbursement of out of
+pocket expenses, applicable taxes.
+In terms of provisions of Section 148(3) of the Act, read
+with Companies (Audit and Auditors) Rules, 2014, members'
+ratification is required for remuneration payable to the
+Cost Auditors.
+Therefore, consent of the members of the Company is being
+sought for ratification of the remuneration payable to the
+Cost Auditors for the financial year ending March 31, 2023.
+The Board recommends the resolution as set out at Item
+no. 6 of the Notice for approval of the Members as an
+Ordinary Resolution.
+None of the Directors or Key Managerial Personnel or
+their relatives are in anyway concerned or interested in
+the resolution as set out in Item no. 6 of this Notice.
+Item No. 7:
+Based on the performance evaluation for financial year
+2021-22 and recognising the contribution made by the
+Independent Directors ("IDs"), the Board of Directors
+recommended to reward the IDs for their contribution
+and valuable inputs provided in the Board processes.
+M/s. SRBC & Co. LLP, Chartered Accountants have
+consented to act as Statutory Auditors and have confirmed
+that their appointment, if made, would be within the limits
+specified under Section 141(3)(g) of the Act. They have also
+confirmed, that they are not disqualified to be appointed as
+Auditors in terms of the provisions of the proviso to Section
+139(1), Section 141(2) and Section 141(3) of the Act and
+the provisions of the Companies (Audit and Auditors)
+Rules, 2014.
+Individual Shareholders holding securities Members facing any technical issue in login can contact NSDL helpdesk by sending a
+in Demat mode with NSDL
+request at evoting@nsdl.co.in or call at toll free no.: 1800 1020 990 and 1800 22 44 30.
+• The list of accounts linked in the login should
+be mailed to helpdesk.evoting@cdslindia.com
+and on approval of the accounts they would be
+able to cast their vote.
+Helpdesk details
+* 3.00
+Date on which
+Dividend will
+become due for
+transfer to IEPF
+29.11.2022
+2015-2016
+17.09.2016
+1.00
+16.10.2023
+2016-2017
+26.09.2017
+3.50
+28.10.2024
+2017-2018
+31.10.2015
+26.09.2018
+27.10.2025
+2018-2019
+28.08.2019
+2.75
+29.09.2026
+2019-2020 (Interim Dividend)
+06.02.2020
+* 3.00
+11.03.2027
+2019-2020
+27.08.2020
+* 1.00
+2020-2021 (Interim Dividend)
+29.01.2021
+* 2.00
+* 5.50
+2014-2015
+Date of
+Declaration of
+Dividend Entitled
+Notice
+13. The Board of Directors at its Meeting held on
+May 30, 2022, recommended Final Dividend of *3/-
+(Rupees Three only) per equity share of *1/- each
+of the Company for the year ended March 31, 2022
+and the same if declared/ approved at the 30th AGM,
+will be paid on or before September 20, 2022, to
+the Company's members whose names stand in the
+Register of Members as beneficial owners on Monday,
+August 22, 2022 as per the list provided by National
+Securities Depository Limited ("NSDL") and Central
+Depository Services (India) Limited ("CDSL") in respect
+of shares held in electronic form and as members in
+the Register of Members of the Company after giving
+effect to valid transmissions lodged with the Company
+on Monday, August 22, 2022.
+The actual Final Dividend on equity shares, as
+aforesaid, will be for equity shares other than
+the equity shares in respect of which the equity
+shareholder(s) has/have waived/forgone his/her/their
+right to receive the dividend for the financial year
+ended March 31, 2022 in accordance with the rules
+framed by the Board as per Note no. 15 of this Notice.
+14. Pursuant to the amendments introduced by the
+Finance Act, 2020, the dividend income will be taxable
+in the hands of the shareholders w.e.f. April 1, 2020
+and the Company is required to deduct tax at source
+from dividend paid to shareholders at the prescribed
+rates. The procedure and Details for Deduction of
+Tax on Dividend and Submission of Documents is
+provided in Annexure-1 to this Notice.
+15. At the Extra Ordinary General Meeting of the
+members of the Company held on September 1,
+2003, the members had approved, by way of a
+Special Resolution, certain amendments whereby few
+Articles were inserted in the Articles of Association
+of the Company relating to enabling the Company
+to implement any instruction from member(s) of the
+Company to waive / forgo his/ their right to receive
+the dividend (interim or final) from the Company for
+any financial year. The above referred amendments
+as approved at the aforesaid Extra Ordinary General
+Meeting have been retained and are inter alia forming
+part of new set of Articles of Association adopted at
+the 24th Annual General Meeting of the Company held
+on September 17, 2016. Thus, the members of the
+Company can waive / forgo, if he / they so desire(s),
+his/ their right to receive the dividend (interim or
+final) for any financial year effective from the dividend
+recommended by the Board of Directors of the
+Company for the year ended March 31, 2004 on a year
+to year basis, as per the rules framed by the Board of
+Directors of the Company from time to time for this
+purpose. The member, if so wishes to waive/ forgo
+the right to receive Final Dividend for the year ended
+March 31, 2022, shall fill up the form and send it to
+the Company's RTA before Monday, August 22, 2022.
+The form prescribed by the Board of Directors of the
+Company for waiving/forgoing the right to receive
+Dividend for any year shall be available for download
+on the Company's website www.sunpharma.com
+under section "Investor - Shareholder's Information
+- Statutory Communication" or can also be obtained
+from the Company's RTA.
+The Board of Directors of the Company at its meeting
+held on September 01, 2003 have framed the following
+rules under old Article 190A (corresponding Article
+142 as per the new set of Articles of Association) of the
+Articles of Association of the Company for members
+who want to waive / forgo the right to receive dividend
+in respect of financial year 2002-2003 or for any
+year thereafter:
+I. A Shareholder can waive / forgo the right to
+receive the dividend (either final and / or interim)
+to which he is entitled, on some or all the Equity
+Shares held by him in the Company as on the
+Record Date / Book-closure Date fixed for
+determining the names of Members entitled
+for such dividend. However, the Shareholder
+cannot waive / forgo the right to receive the
+dividend (either final and / or interim) for a part of
+percentage of dividend on a share(s).
+II.
+The Equity Shareholder(s) who wish to waive/
+forgo the right to receive the dividend for any
+year shall inform the Company in the form
+prescribed by the Board of Directors of the
+Company only.
+III. In case of joint holders holding the Equity Shares
+of the Company, all the joint holders are required
+to intimate to the Company in the prescribed form
+their decision of waiving / forgoing their right to
+receive the dividend from the Company.
+Rate of Dividend
+per share of
+* 1/- each
+IV. The Shareholder, who wishes to waive / forgo
+the right to receive the dividend for any year
+shall send his irrevocable instruction waiving /
+forgoing dividend so as to reach the Company
+before the Record Date / Book Closure Date
+fixed for the payment of such dividend. Under no
+circumstances, any instruction received for waiver
+/ forgoing of the right to receive the dividend for
+any year after the Record Date / Book Closure
+Date fixed for the payment of such dividend for
+that year shall be given effect to.
+The instruction once given by a Shareholder
+intimating his waiver/ forgoing of the right to
+receive the dividend for any year for interim,
+final or both shall be irrevocable and cannot
+be withdrawn for that particular year for such
+waived/forgone the right to receive the dividend.
+But in case, the relevant Shares are sold by the
+same Shareholder before the Record Date/
+Book Closure Date fixed for the payment of such
+Scaling up Specialty. Leading with Care.
+299
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+dividend, the instruction once exercised by such
+earlier Shareholder intimating his waiver/ forgoing
+the right to receive dividend will be invalid for the
+next succeeding Shareholder(s) unless such next
+succeeding Shareholder(s) intimates separately in
+the prescribed form, about his waiving/ forgoing
+of the right to receive the dividend for the
+particular year.
+VI. The Equity Shareholders who wish to waive/
+forgo their right to receive the dividend for any
+year can inform the Company in the prescribed
+form only after the beginning of the relevant
+financial year for which the right to receive the
+dividend is being waived/forgone by him.
+VII. The instruction by a Shareholder to the Company
+for waiving/forgoing the right to receive dividend
+for any year is purely voluntary on the part of the
+Shareholder(s). There is no interference with a
+Shareholder's Right to receive the dividend, if he
+does not wish to waive/ forgo his right to receive
+the dividend. No action is required on the part of
+Shareholder who wishes to receive dividends as
+usual. Such Shareholder will automatically receive
+dividend as and when declared.
+Individual Shareholders holding securities Members facing any technical issue in login can contact CDSL helpdesk by sending a
+in Demat mode with CDSL
+request at helpdesk.evoting@cdslindia.com or call at toll free no.: 1800 22 55 33.
+IX. These Rules can be amended by the Board of
+Directors of the Company from time to time as
+may be required.
+16. The members of erstwhile Tamilnadu Dadha
+Pharmaceuticals Limited; erstwhile Gujarat Lyka
+Organics Limited; erstwhile Phlox Pharmaceuticals
+Limited and erstwhile Ranbaxy Laboratories Limited;
+who have not yet sent their share certificates
+for exchange with the share certificates of Sun
+Pharmaceutical Industries Limited, are requested to do
+so at the earliest, provided their shares are not already
+transferred to IEPF, since share certificates of the
+erstwhile Tamilnadu Dadha Pharmaceuticals Limited;
+erstwhile Gujarat Lyka Organics Limited; erstwhile
+Phlox Pharmaceuticals Limited and erstwhile Ranbaxy
+Laboratories Limited are no longer tradable/ valid.
+17. The members may be aware that the equity shares of
+the Company had been subdivided from 1 (One) equity
+share of 5/- (Rupees Five Only) each to 5 (Five) equity
+shares of 1/- each on November 29, 2010 based on
+the Record Date of November 26, 2010. The members
+who have yet not sent their share certificates of * 5/-
+(Rupees Five Only) each of the Company for exchange
+with new equity shares of 1/- each are requested to
+send the same to the Company's RTA, provided their
+shares are not already transferred to IEPF, since the old
+share certificates of 5/- (Rupees Five Only) each are
+no longer tradable.
+18. Pursuant to Section 124 of the Act, the amount of dividend remaining unclaimed for a period of seven years shall be
+transferred to the Investor Education and Protection Fund ("IEPF"). The Company will be transferring the unclaimed
+dividends during the financial years ending March 31, 2022 to March 31, 2029 as given below:
+300
+Dividend for Financial Year
+V.
+2020-2021
+VIII. The decision of the Board of Directors of the
+Company or such person(s) as may be authorized
+by Board of Directors of the Company shall be
+final and binding on the concerned Shareholders
+on issues arising out of the interpretation and / or
+implementation of these Rules.
+* 2.00
+in Demat mode
+with CDSL
+2)
+3)
+4)
+Users who have opted for CDSL Easi / Easiest facility, can login through their existing user id and
+password. Option will be made available to reach e-voting page without any further authentication.
+The URL for users to login to Easi / Easiest are https://web.cdslindia.com/myeasi/home/login or visit
+www.cdslindia.com and click on Login icon and select New System Myeasi.
+After successful login the Easi / Easiest user will be able to see the e-voting option for eligible
+companies where the e-voting is in progress as per the information provided by company. On clicking
+the e-voting option, the user will be able to see e-voting page of the e-voting service provider for
+casting your vote during the remote e-voting period or joining virtual meeting & voting during the
+meeting. Additionally, there is also link provided to access the system of e-voting Service Provider i.e.
+CDSL, so that the user can visit the e-voting service providers' website directly.
+If the user is not registered for Easi/Easiest, option to register is available at https://web.cdslindia.
+com/myeasi/Registration/EasiRegistration
+Alternatively, the user can directly access e-voting page by providing Demat Account Number and
+PAN from an e-voting link available on www.cdslindia.com home page or click on https://evoting.
+cdslindia.com/Evoting/EvotingLogin The system will authenticate the user by sending OTP on
+registered Mobile & E-mail as recorded in the Demat Account. After successful authentication, user
+will be able to see the e-voting option where the e-voting is in progress and also be able to directly
+access the system of the respective e-voting Service Provider, i.e. CDSL.
+Notice
+Type of shareholders
+Login Method
+Individual
+1)
+holding securities
+Shareholders
+holding securities
+in demat mode
+with NSDL
+(holding securities
+login through
+their Depository
+Participants
+2)
+3)
+1)
+If you are already registered for NSDL IDEAS facility, please visit the e-Services website of NSDL.
+Open web browser by typing the following URL: https://eservices.nsdl.com either on a Personal
+Computer or on a mobile. Once the home page of e-Services is launched, click on the "Beneficial
+Owner" icon under "Login" which is available under 'IDEAS' section. A new screen will open. You will
+have to enter your User ID and Password. After successful authentication, you will be able to see
+e-voting services. Click on "Access to e-voting" under e-voting services and you will be able to see
+e-voting page. Click on company name - Sun Pharmaceutical Industries Limited or e-voting service
+provider name - CDSL and you will be re-directed to e-voting service provider website for casting
+your vote during the remote e-voting period or joining virtual meeting & voting during the meeting.
+If the user is not registered for IDEAS e-Services, option to register is available at https://eservices.
+nsdl.com. Select "Register Online for IDEAS "Portal or click at https://eservices.nsdl.com/SecureWeb/
+Ideas DirectReg.jsp.
+Visit the e-Voting website of NSDL. Open web browser by typing the following
+URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the home
+page of e-Voting system is launched, click on the icon "Login" which is available under 'Shareholder/
+Member' section. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit
+demat account number held with NSDL), Password/OTP and a Verification Code as shown on the
+screen. After successful authentication, you will be redirected to NSDL Depository site wherein you
+can see e-voting page. Click on company name - Sun Pharmaceutical Industries Limited or e-voting
+service provider name - CDSL and you will be redirected to CDSL's website for casting your vote
+during the remote e-voting period or joining virtual meeting & voting during the meeting.
+You can also login using the login credentials of your demat account through your Depository
+Participant registered with NSDL/CDSL for e-voting facility. After Successful login, you will be able
+to see e-voting option. Once you click on e-voting option, you will be redirected to NSDL/CDSL
+Depository site after successful authentication, wherein you can see e-voting feature. Click on
+company name - Sun Pharmaceutical Industries Limited or e-voting service provider name - CDSL,
+and you will be redirected to CDSL website for casting your vote during the remote e-voting period
+or joining virtual meeting & voting during the meeting.
+Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and
+Forget Password option available at abovementioned website.
+Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login
+through Depository i.e. CDSL and NSDL
+Login type
+31.08.2021
+Individual
+Shareholders
+Shareholders
+in demat mode)
+Individual
+2021-2022 (Interim Dividend)
+1)
+31.01.2022
+* 7.00
+28.09.2027
+04.03.2028
+05.10.2028
+02.03.2029
+Notice
+19. The members may note that pursuant to Section
+124(6) of the Act read with Investor Education and
+Protection Fund Authority (Accounting, Audit, Transfer
+and Refund) Rules, 2016 as amended from time to time
+("the Rules"), the shares in respect of which dividend
+has not been paid or claimed by the members for seven
+consecutive years or more shall be transferred to the
+demat account created by the IEPF Authority.
+Consequently, the Company has transferred the
+shares to the IEPF Authority in respect of which
+dividend has remained unpaid or unclaimed from the
+financial year 2013-14 for 7 (seven) consecutive years,
+the details of which are available on website of the
+Company www.sunpharma.com under head "Investor"
+sub-head "Shareholder Information".
+The procedure to claim shares from IEPF Authority
+is provided on the website of the Company and can
+be accessed from: www.sunpharma.com under head
+"Investor" sub-head "Shareholder Information".
+20. The members are requested to get their physical
+shares dematerialised, since vide SEBI Circular
+dated June 08, 2018 read with SEBI Circular dated
+December 03, 2018 with effect from April 01, 2019,
+the securities shall not be transferred unless they
+are held in the dematerialised form. Further, vide
+SEBI Circular dated January 25, 2022, securities shall
+be issued in dematerialised form while processing
+requests for transmission/ transposition/ duplicate
+certificates, etc.
+21. Pursuant to the provisions of Section 108 of the Act
+read with Rule 20 of the Companies (Management
+and Administration) Rules, 2014 (as amended) and
+Regulation 44 of SEBI (Listing Obligations & Disclosure
+Requirements) Regulations 2015 (as amended), and
+MCA Circulars, the Company is providing facility
+of remote e-voting to its Members in respect of
+the business to be transacted at the 30th AGM of
+the Company. For this purpose, the Company has
+appointed Central Depository Services (India) Limited
+("CDSL") for facilitating voting through electronic
+means, as the authorised e-voting agency.
+22. The Members can join the 30th AGM in the VC/
+OAVM mode 30 minutes before the scheduled time
+of the commencement of the Meeting by following
+the procedure as detailed in this Notice. As per the
+MCA Circulars, the facility of participation at the
+30th AGM through VC/OAVM will be made available
+to at least 1000 members on first come first served
+basis. This will not include large Shareholders
+(Shareholders holding 2% or more shareholding),
+Promoters, Institutional Investors, Directors, Key
+Managerial Personnel, the Chairpersons of the Audit
+Committee, Nomination and Remuneration Committee
+and Stakeholders Relationship Committee, Auditors
+etc. who are allowed to attend the 30th AGM without
+restriction on account of first come first served basis.
+23. The attendance of the Members attending the 30th
+AGM through VC/OAVM will be counted for the
+purpose of ascertaining the quorum under Section 103
+of the Act.
+24. The voting rights of Members shall be in proportion to
+their shares in the paid-up share capital of the Company
+as on the Cut-off Date for e-voting, i.e., Monday,
+August 22, 2022. A person who is not a Member as
+on the Cut-off Date should treat this Notice solely for
+information purposes. Those who acquire equity shares
+of the Company and become members of the Company
+after the Notice is sent, and hold equity shares as on the
+Cut-off Date, can login to vote/ attend the 30th AGM, as
+detailed in Note no. 26 of this Notice.
+Scaling up Specialty. Leading with Care.
+The shares in respect of which dividend has remained
+unpaid or unclaimed for 7 (seven) consecutive years
+commencing from the financial year 2014-15 are liable
+for transfer to the IEPF Authority pursuant to the
+Rules. The details of such shares which are becoming
+due for transfer to IEPF Authority on November
+29, 2022 are available on website of the Company
+www.sunpharma.com under head "Investor" sub-head
+"Shareholder Information". The shareholders are
+requested to claim their unpaid or unclaimed Dividend
+latest by November 29, 2022 after which date the
+Company shall initiate the process of transferring the
+eligible shares to the IEPF Authority.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+302
+Login Method
+301
+Type of shareholders
+Pursuant to aforesaid circular, login method for e-voting and joining virtual meetings for individual shareholders
+holding securities in demat mode CDSL/NSDL is given below:
+(iv) In terms of SEBI Circular no. SEBI/HO/CFD/CMD/
+CIR/P/2020/242 dated December 9, 2020 on
+e-voting facility provided by listed companies,
+individual shareholders holding securities in
+demat mode are allowed to vote through their
+demat account maintained with Depositories
+and Depository Participants. Shareholders are
+advised to update their mobile number and e-mail
+id in their demat accounts in order to access
+e-voting facility.
+E-voting has been enabled for all the demat
+account holders by way of a single login credential
+through their demat accounts/websites of
+Depositories/ Depository Participants. Demat
+account holders would be able to cast their
+vote without having to register again with the
+e-voting service providers, thereby, not only
+facilitating seamless authentication but also
+enhancing ease and convenience of participating
+in e-voting process.
+(ii) Shareholders who have already voted prior to the
+meeting date would not be entitled to cast their
+vote again.
+(iii) Pursuant to SEBI Circular No. SEBI/HO/CFD/
+CMD/CIR/P/2020/242 dated December 9,
+2020, under Regulation 44 of Securities and
+Exchange Board of India (Listing Obligations and
+Disclosure Requirements) Regulations, 2015,
+listed entities are required to provide remote
+e-voting facility to its shareholders, in respect of
+all shareholders' resolutions.
+The remote e-voting period begins on Friday,
+August 26, 2022 at 09:00 a.m. and ends on
+Sunday, August 28, 2022 at 05:00 p.m. During
+this period, shareholders of the Company holding
+shares either in physical form or in dematerialised
+form, as on the Cut-off Date for e-voting, i.e.
+Monday, August 22, 2022, may cast their vote
+electronically. The e-voting module shall be
+disabled by CDSL for voting thereafter. Those
+members who will be present in the 30th AGM
+through VC/OAVM facility and have not cast
+their vote on the resolutions through remote
+e-voting and are otherwise not barred from doing
+so, shall be eligible to vote through e-voting
+system during the 30th AGM.
+(i)
+26. Instructions for Remote E-Voting and E-Voting during
+the Meeting:
+25. The Board of Directors have appointed Mr. Chintan
+Goswami, Partner of KJB & Co. LLP, Practising
+Company Secretaries, and failing him, Mr. Alpesh
+Panchal, Partner of KJB & Co. LLP, Practising Company
+Secretaries, as the Scrutinizer to scrutinize the e-voting
+during the 30th AGM by electronic mode and remote
+e-voting process in a fair and transparent manner. They
+have communicated their willingness to be appointed
+as such and they are available for the said purpose.
+Name of Director
+Commission¹
+Total
+Rama Bijapurkar
+Pawan Goenka
+4,000,000
+Sitting Fees
+1,950,000
+(in )
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+(ii) Past remuneration
+The background details and profiles of Dr. Pawan Goenka, Ms. Rama Bijapurkar, Mr. Gautam Doshi and Mr. Dilip S.
+Shanghvi are provided under the heading "Profile of Directors" given with this Notice.
+(i) Background details
+II. Information about the Appointees/ Directors whose remuneration is proposed:
+315
+5,950,000
+354,030,775
+14.75
+Scaling up Specialty. Leading with Care.
+The remuneration paid/ payable for Financial Year 2021-22 to Independent Directors is as follows:
+Gautam Doshi
+(in )
+4,000,000
+Besides this, he is also entitled to encashment of leave as per Company policy, and gratuity at the end of tenure, as per
+the rules of the Company.
+Further details are provided under the heading 'Remuneration to Directors' in the Corporate Governance Report
+forming part of the Annual Report for the financial year 2021-22.
+0.00
+Perquisites include House Rent Allowance if any, Leave Travel Assistance, Medical Reimbursement, contribution to Provident Fund and such
+other perquisites etc, payable to Directors, as per Company Policy.
+50,511,195
+Total
+Perquisites/
+Benefits
+5,151,800
+7,559,899
+37,799,496
+Bonus
+Salary
+Notes:
+Dilip Shanghvi
+Name of Director
+The remuneration paid/ payable for Financial Year 2021-22 to Managing Director is as follows:
+1 The Board of Directors at their meeting held on May 30, 2022 have approved Commission of ₹4,000,000 (Rupees Forty Lakhs only) to be
+paid to each Independent Director of the Company, for the FY 2021-22, subject to the approval of the members at the ensuing 30th Annual
+General Meeting and the payment shall be made after obtaining approval of the members.
+7,000,000
+4,000,000
+4,800,000
+800,000
+3,000,000
+10,878
+2021-22
+46,000
+13.6
+33,498.14
+38,654.49
+46,462.78
+48,011.22
+3,272.73
+2,903.82
+2020-21
+12.1
+(v) Foreign investments or collaborations, if any.
+Revenue from operations
+Total Equity (Share capital + other equity)
+Profit/(Loss) after Tax
+Particulars
+(in Crores except EPS)
+3.5
+(iii) Recognition or awards
+(0.4)
+Earnings Per Share
+As on March 31, 2022, the Shareholding of Foreign Institutional Investors, Foreign Nationals and Foreign Companies,
+in the Company is detailed as under:
+Particulars
+Foreign Portfolio Investors
+0.00
+6,897
+0.14
+3,460,482
+0.17
+4,050,334
+0.00
+13,731
+14.44
+346,442,453
+%
+No. of Shares
+Total
+Foreign Bank
+Overseas Bodies Corporate
+Foreign Companies
+Non-Resident Indians (Non-Repat)
+Non-Resident Indians (Repat)
+Foreign Nationals
+0.00
+Refer details provided in “Profile of Directors" forming
+part of this Notice.
+For details of investment made by the Company, please refer the schedule no. 5, 6 and 13 of the Standalone Balance
+sheet forming part of the Annual Report for 2021-22 being sent along with this Notice. The Company has not entered
+into any material foreign collaboration.
+Their detailed profiles are provided under heading
+"Profile of Directors" forming part of this Notice
+NIL
+Government, RBI, corporations established by Central Act &
+mutual funds specified u/s 10(23D) of the Income-tax Act, 1961.
+Category I and II Alternative Investment Fund
+5.
+NIL
+Shareholder covered u/s 196 of Income Tax Act, 1961 such as
+4.
+NIL
+Shareholders to whom section 194 of the Income Tax Act,
+1961 does not apply such as LIC, GIC, etc.
+Documents Required (if any)
+3.
+NIL
+Rate of Deduction
+of Tax at Source
+Securitisation Trust
+2.
+Submission of Form No. 15G/15H
+1.
+No.
+Particulars
+NIL
+Declaration in Form No. 15G (applicable to any
+person other than a company or a firm)/ Form
+No.15H (applicable to an Individual who is 60
+years and above), fulfilling certain conditions.
+Please download Form No. 15G/ 15H from the
+Income Tax website www.incometaxindia.gov.in.
+Copy of registration/ document evidencing
+the shareholder being a securitisation trust
+(as defined in clause (d) of the Explanation
+below section 115TCA).
+Documentary evidence that the said provisions
+are not applicable.
+Documentary evidence for coverage u/s 196 of
+the Income Tax Act, 1961
+842.40
+26,938.47
+14,116.05
+318
+• at the rate of 5%.
+• at twice the rate specified in the relevant provision;
+⚫ at twice the rate in force; or
+The TDS rate for payments made to the specified
+persons stated above, shall be the higher of
+the following:
+Higher rates of TDS for the purpose of section 206AB
+of the Act:
+(iii) The Finance Act, 2021 inserted a new section, section
+206AB as a special provision providing for higher
+rates of TDS for non-filers of income tax returns. The
+said section came into effect from July 1, 2021. The
+provisions of section 206AB of the Income-tax Act,
+1961 ('the Act') as amended from April 1, 2022 provide
+for higher rates of withholding tax, in case where the
+recipient /deductee is a 'Specified person' as per the
+provisions of the Income Tax Act, 1961.
+No TDS as per section 197A (1E) of the Income
+Tax Act, 1961
+NIL
+National Pension System Trust referred to in section 10(44) of
+the Income-tax Act, 1961
+7.
+Approved gratuity fund
+•
+Necessary documentary evidence as per Circular
+No. 18/2017 issued by Central Board of Direct
+Taxes (CBDT)
+• Approved superannuation fund
+NIL
+• Recognised provident funds
+6.
+SEBI AIF registration certificate to claim benefit
+u/s 197A (1F) read with section 10(23FBA) of the
+Income Tax Act, 1961
+Sr.
+No Tax Deductible at Source on dividend payment to resident shareholders if the shareholders submit and register
+following documents mentioned in column no. 4 of the below table with the Company/ Company's RTA - Link
+Intime India Private Limited
+Lower/nil tax deduction certificate obtained from
+Income Tax Authority
+No document required (if no exemption is sought)
+No document required (if no exemption is sought)
+Scaling up Specialty. Leading with Care.
+Mr. Dilip S. Shanghvi, whose re-appointment is
+proposed satisfies all the conditions set out in Part-I
+of Schedule V to the Act as also conditions set out
+under sub-section 3 of section 196 of the Act for being
+eligible for his appointment. He is not disqualified from
+being appointed as Director in terms of section 164
+of the Act. Further, he is not debarred from holding
+the office of Director pursuant to any Order issued
+by the Securities and Exchange Board of India or any
+other authority.
+The information and disclosures of aforementioned
+Directors have been mentioned in the Annual Report
+in the Corporate Governance Report Section under the
+Heading "Remuneration to Directors".
+IV. Disclosures:
+N.A.
+(iii) Expected increase in productivity and profits in
+measurable terms
+(ii) Steps taken or proposed to be taken for improvement
+Since the loss incurred is due to exceptional item and
+tax, as detailed in clause (i) above, there are no steps
+required to be taken for improvement.
+Consequent to the settlement of lawsuit mentioned
+in above, during the year ended March 31, 2022,
+the Company has reassessed the expected timing of
+utilisation of Minimum Alternate Tax (MAT) credit and
+based on this reassessment written off a MAT credit
+of 4,406.0 Million and disclosed the charge as an
+exceptional item which resulted in loss for FY 2021-22.
+For further details, please refer Note 54 (2) of
+standalone financial statements.
+The Company and certain of its subsidiaries are
+defendants in a number of class action lawsuits
+brought by purchasers and payors in the U.S. alleging
+violation of antitrust laws with respect to its ANDAS
+for Valganciclovir, Valsartan and Esomeprazole. The
+cases were transferred to the U.S. District Court
+for the District of Massachusetts for coordinated
+proceedings. With a view to resolve the dispute
+and avoid uncertainty, a settlement without any
+admission of guilt or violation of any statute, law,
+rule or regulation, or of any liability or wrongdoing
+was reached with all of the plaintiff classes on
+March 23, 2022, for a total settlement amount of
+USD 485 Million of which USD 210 Million was borne
+by the Company along with its related legal charges of
+USD 8.3 Million pertaining to this lawsuit (equivalent
+to 16,549.6 Million inclusive of legal charges). The
+settlement is subject to final approval by the Court.
+Reasons of loss or inadequate profits
+(i)
+III. Other information:
+Ms. Rama Bijapurkar, Mr. Gautam Doshi and Mr. Dilip
+S. Shanghvi do not have any pecuniary relationship
+directly or indirectly with the Company and its
+managerial personnel.
+(vii) Pecuniary relationship directly or indirectly with
+the company, or relationship with the managerial
+personnel [or other director], if any.
+Notice
+316
+(vi) Comparative remuneration profile with respect to
+industry, size of the company, profile of the position
+and person (in case of expatriates the relevant details
+would be with respect to the country of his origin):
+The proposed remuneration to Mr. Dilip S. Shanghvi,
+and proposed commission to Dr. Pawan Goenka,
+Mr. Gautam Doshi and Ms. Rama Bijapurkar (looking
+at their profile, position and responsibilities), is
+commensurate with the remuneration being paid
+by the Companies of comparable size in the industry
+in which the Company operates.
+Details of remuneration proposed for approval of the
+Shareholders at this 30th AGM of the Company are
+as provided in the respective resolutions no. 7 & 9 of
+this Notice.
+(v) Remuneration proposed
+317
+(iv) Job profile and his suitability
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Details for Deduction of tax on Dividend and Submission of Documents
+Documents Required (if any)
+(ii)
+Rate specified
+in the Certificate
+Availability of lower/nil tax deduction certificate issued by
+Income Tax Department u/s 197 of Income Tax Act, 1961
+3.
+20%
+of Tax at Source
+10%
+Valid PAN updated in the Company's Register of Members
+No PAN/Valid PAN not updated in the Company's Register of
+Members
+2.
+1.
+No.
+Particulars
+Rate of Deduction
+Sr.
+Tax Deductible at Source for resident shareholders
+(i)
+RESIDENT SHAREHOLDERS
+a)
+Pursuant to the amendments introduced by the Finance Act, 2020, the dividend income will be taxable in the hands of the
+shareholders w.e.f. April 1, 2020 and the Company is required to deduct tax at source from dividend paid to shareholders
+at the prescribed rates. However, no tax will be deducted on payment of dividend to the resident individual shareholders, if
+the total dividend paid does not exceed 5,000/-. The rate of tax deducted at source will vary depending on the residential
+status of the shareholder and documents registered with the Company.
+ANNEXURE - 1
+15,585.98
+Apart from the sitting fees/ commission/ remuneration
+and perquisites (as applicable) paid/ payable, as stated
+above and their respective shareholding held directly
+or indirectly in the Company, Dr. Pawan Goenka,
+(in Crores except EPS)
+2020-21
+Membership / Chairmanship
+1)
+of Committees of other public
+Companies:
+4) Universal Enterprises Private Limited
+Sun Pharma Laboratories Limited
+•
+Nomination and Remuneration Committee - Member
+companies):
+2) Sun Pharma Distributors Limited
+Corporate Social Responsibility Committee - Member
+None
+Inter-se Relationship between
+Directors:
+No. of Shares held in the Company 2,159,347 Equity Shares
+(singly or jointly as first holder) as
+on March 31, 2022:
+Particulars
+Age
+•
+Sun Pharma Distributors Limited
+3)
+companies & section 8
+Notice
+(Details of Directors proposed to be reappointed/ whose remuneration is proposed)
+As required under Regulation 36 of the Securities and Exchange Board of India (Listing Obligations and Disclosure
+Requirements) Regulations, 2015 and as required under Secretarial Standard on General Meetings issued by the Institute
+of Company Secretaries of India (SS - 2), the particulars of Directors who are proposed to be reappointed and whose
+remuneration is proposed, at this 30th AGM, are given below:
+The details of Board and Committee Meetings attended by these Directors during the year 2021-22 are stated in the
+Corporate Governance Report which forms part of this Annual Report.
+The details of remuneration, wherever applicable, are provided in the respective resolution(s).
+Particulars
+Age
+Brief resume of the Director
+including nature of expertise in
+specific functional areas:
+Date of First appointment on the
+Board:
+Directorship held in other
+Mr. Sailesh T. Desai
+68 Years
+Mr. Sailesh T. Desai is a science graduate from Kolkata University and is a successful entrepreneur with more
+than 35 years of wide industrial experience including more than 30 years in the pharmaceutical industry.
+Mr. Desai has extensive and comprehensive corporate affairs experience, being involved in the turnaround
+at Milmet prior to Sun Pharma's acquisition, as well as in the early stages of the company's growth.
+March 25, 1999
+1) Sun Pharma Laboratories Limited
+companies (excluding foreign
+2)
+Sun Pharmaceutical Medicare Limited
+Brief resume of the Director
+including nature of expertise in
+specific functional areas:
+PROFILE OF DIRECTORS
+Date of First appointment on the
+Board:
+companies (excluding foreign
+•
+Risk Management Committee - Chairman
+Securities Allotment Committee - Member
+Inter-se Relationship between
+Directors:
+Mr. Dilip S. Shanghvi is Brother-in-law of Mr. Sudhir V. Valia, Director
+No. of Shares held in the Company 230,285,690 Equity Shares
+(singly or jointly as first holder) as
+on March 31, 2022:
+•
+Particulars
+Brief resume of the Director
+including nature of expertise in
+specific functional areas:
+Date of First appointment on the
+Board:
+Directorship held in other
+companies (excluding foreign
+Mr. Gautam Doshi
+69 Years
+Mr. Gautam Doshi, a Chartered Accountant and Masters in Commerce, has been in professional practice for
+over 40 years. He advises various industrial groups and families and also serves as a Director on boards of
+public listed and unlisted companies.
+Age
+Fund Management Committee - Member
+•
+•
+Mr. Dilip S. Shanghvi
+66 Years
+Mr. Dilip Shanghvi, Managing Director, is also the founder of Sun Pharmaceutical Industries Limited and
+has extensive industrial experience in the pharmaceutical industry. A first-generation entrepreneur, Mr.
+Shanghvi has won numerous awards and recognitions, including Forbes's Entrepreneur of the Year Award
+(2014), Economic Times' Business Leader of the Year (2014), CNN IBN's Indian of the Year (Business) (2011),
+Business India's Businessman of the Year (2011) and Ernst and Young's World Entrepreneur of the Year
+(2011). He has also been awarded the Economic Times' Entrepreneur of the Year (2008), Business Standard's
+CEO of the Year (2008), and CNBC TV 18's First Generation Entrepreneur of the Year (2007). Mr. Shanghvi
+was conferred with the prestigious 'Padma Shri award by the Hon'ble President of India in the year 2016.
+As the promoter of the Company, he has been actively involved in international pharmaceutical markets,
+business strategy, business development and research and development functions in the Company.
+Mr. Shanghvi is also Chairman of Sun Pharma Advanced Research Company Limited. He holds a B. Com
+degree from the University of Kolkata.
+March 1, 1993
+1) Sun Pharma Advanced Research Company Limited
+2) Sun Petrochemicals Private Limited
+companies & section 8 companies): 3) Alfa Infraprop Private Limited
+4) Aditya Clean Power Ventures Private Limited
+Scaling up Specialty. Leading with Care.
+311
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Particulars
+Membership / Chairmanship
+of Committees of other public
+Companies:
+Mr. Dilip S. Shanghvi
+1) Sun Pharma Advanced Research Company Limited -
+Corporate Social Responsibility Committee Member
+Directorship held in other
+Mr. Doshi has more than 40 years of experience in wide range of areas covering Mergers and Acquisitions,
+Direct, Indirect and International Taxation, Transfer Pricing, Accounting and Corporate and Commercial
+Laws. He has been actively involved in conceptualizing and implementing a number of mergers and
+restructuring transactions both domestic and cross border, involving many of the top 20 listed companies
+on BSE as also those forming part of FTSE 100.
+310
+The Board recommends the Resolution as set out at Item no. 10 of the Notice for approval of the Members as an
+Ordinary Resolution.
+Details
+Taro Pharmaceuticals USA, Inc. ("Taro USA") and Taro
+Pharmaceuticals Inc., Canada ("Taro Canada") are subsidiaries
+of the Company through its subsidiary Taro Pharmaceutical
+Industries Limited, Israel. Also, Taro Pharmaceuticals Inc,
+Canada is the holding company of Taro Pharmaceuticals USA.
+Inc.
+Taro USA and Taro Canada are the wholly owned subsidiaries of
+Taro Pharmaceutical Industries Limited, Israel, subsidiary of the
+Company.
+The Company, Sun Pharmaceutical Industries limited, is not a
+party in the proposed related party transaction.
+Purchase and Sale of pharmaceutical products
+Taro USA acts as distributor for Taro Canada products in the US
+market. Taro USA is guaranteed an arm's length remuneration
+for its distribution and ancillary activities.
+2 (two) financial years i.e.
+April 1, 2022 to March 31, 2023, and
+The percentage of the listed entity's annual
+consolidated turnover, for the immediately preceding
+financial year, that is represented by the value of
+the proposed transaction (and for a RPT involving a
+subsidiary, such percentage calculated on the basis
+of the subsidiary's annual turnover on a standalone
+basis shall be additionally provided)
+April 1, 2023 to March 31, 2024
+For the Company - 5.20%
+For Taro USA - 73.06%
+For Taro Canada - 91.37%
+Scaling up Specialty. Leading with Care.
+309
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Sr.
+Description
+April 1, 2022 to March 31, 2023 - Equivalent to 2,000 Crores
+April 1, 2023 to March 31, 2024 - Equivalent to ₹ 2,000 Crores
+e.
+Value of the proposed transaction
+d.
+Notice
+None of the Directors or Key Managerial Personnel of
+the Company and their relatives, other than Mr. Dilip S.
+Shanghvi to whom this resolution relates and Mr. Sudhir
+V. Valia, being brother-in-law of Mr. Dilip S. Shanghvi and
+their relatives, are in any way concerned or interested in the
+Resolution as set out at Item no. 9 of this Notice.
+Item No. 10:
+Pursuant to Regulation 23 of Securities and Exchange Board
+of India (Listing Obligations and Disclosure Requirements)
+Regulations, 2015, related party transactions having a
+value of lower of 1,000 crores or 10% of the annual
+consolidated turnover of the listed entity as per the last
+audited financial statements of the listed entity, shall be
+considered as material. Taro Pharmaceuticals Inc., Canada
+("Taro Canada") is an indirect subsidiary of the Company
+through its subsidiary Taro Pharmaceutical Industries
+Limited, Israel, which is primarily engaged in manufacture
+of pharmaceutical products. Taro Pharmaceuticals USA, Inc.
+("Taro USA") is another indirect subsidiary of the Company,
+and is a wholly owned subsidiary of Taro Canada. To bring
+about greater efficiency and manage the supply chain
+effectively, Taro USA acts as a distributor for Taro Canada in
+the US markets.
+The proposed transaction value between Taro Canada
+and Taro USA, being non wholly-owned subsidiaries of the
+Company, for FY 2022-23 and FY 2023-24 is equivalent
+to 2,000 Crores for each year, which is material, hence,
+approval of the shareholders is being sought.
+The proposed transaction shall be at arm's length and in the
+ordinary course of business of the respective companies.
+The Corporate Governance and Ethics Committee, Audit
+Committee and the Board of Directors of the Company
+have reviewed the relevant details, as required under
+the law, of the proposed transaction(s), and thereafter
+approved and recommended to the shareholders for their
+approval, the material related party transaction as detailed
+in the resolution.
+Information pursuant to SEBI Circular No. SEBI/HO/CFD/CM1/CIR/P/2021/662 dated November 22, 2021 and the Act, is
+given below:
+Sr.
+No.
+a.
+b.
+C.
+Description
+Name of the related party and its relationship with
+the listed entity or its subsidiary, including nature of
+its concern or interest (financial or otherwise)
+Type, material terms and particulars of the proposed
+transaction
+Tenure of the proposed transaction (particular tenure
+shall be specified)
+Details
+(99.99)
+24,587.95
+No.
+Any advance paid or received for the contract or
+arrangement, if any
+pursuant to the RPT
+The pricing is determined on arm's length basis.
+Yes
+Mr. Sudhir Valia, Director of the Company is a Director of Taro
+Canada and Taro USA.
+Mr. Gautam Doshi, Director of the Company is a Director of
+Taro USA.
+US is largest pharma market and Taro USA sources its products
+from various manufacturers including Taro Canada, a group
+company.
+Not Applicable
+utilized by the ultimate beneficiary of such funds
+A statement that the valuation or other external party Not Applicable
+listed entity in relation to the proposed transaction
+will be made available through the registered email
+address of the shareholders
+Percentage of the counter-party's annual
+As per clause e above.
+consolidated turnover that is represented by the
+value of the proposed RPT on a voluntary basis
+n.
+Any other information that may be relevant
+report, if any such report has been relied upon by the
+interest rate and repayment schedule, whether
+secured or unsecured; if secured, the nature of
+security the purpose for which the funds will be
+(iii) applicable terms, including covenants, tenure,
+• tenure;
+Nil
+g.
+h.
+i.
+j.
+k.
+I.
+m.
+The manner of determining the pricing and other
+commercial terms, both included as part of contract
+and not considered as part of the contract
+Whether all factors relevant to the contract have
+been considered, if not, the details of factors not
+considered with the rationale for not considering
+those factors
+Name of the director or key managerial personnel
+who is related, if any
+Justification as to why the RPT is in the interest of
+the listed entity
+If the transaction relates to any loans, inter-corporate
+deposits, advances or investments made or given by
+the listed entity or its subsidiary:
+(i) details of the source of funds in connection with
+the proposed transaction
+(ii) where any financial indebtedness is incurred to
+make or give loans, inter-corporate deposits,
+advances or investments,
+• nature of indebtedness;
+⚫ cost of funds; and
+f.
+A prolific speaker, Mr Doshi has addressed several seminars and conferences within and outside of India and
+courses organized by the Institute of Chartered Accountants of India, International Fiscal Association, other
+professional bodies and Chambers of Commerce.
+None of the Directors and Key Managerial Personnel of the Company and their respective relatives except Mr. Sudhir
+Valia and Mr. Gautam Doshi, by virtue of their directorships in the aforementioned subsidiary companies, are concerned
+or interested in the Resolution set out at Item No. 10.
+1)
+1) Sun Pharma Distributors Limited
+● Corporate Social Responsibility Committee - Member
+2) Mahindra & Mahindra Financial Services Limited
+• Audit Committee - Member
+•
+•
+•
+Directors:
+Stakeholders' Relationship Committee - Chairperson
+Corporate Social Responsibility Committee - Member
+3) Nestle India Limited
+•
+Stakeholders Relationship Committee - Chairperson
+• Corporate Social Responsibility Committee - Member
+4) VST Industries Limited
+• Audit Committee Member
+Risk Management Committee - Member
+•
+Inter-se Relationship between
+Membership / Chairmanships
+Researcher, consultant, academic, author of books on Consumer India and on business-market strategy,
+Ms. Rama Bijapurkar is a recognised thought leader on market strategy and consumer behaviour as
+well as a keen commentator on social and cultural change in India. Over the past several decades, she
+has been a dominant voice in the media on business and policy issues through her columns in leading
+newspapers and magazines and through her hallmark books on Consumer India.
+Ms. Bijapurkar is Professor of Management Practice at Indian Institute of Management, Ahmedabad,
+her alma mater. Ms. Bijapurkar is amongst India's most experienced independent board directors and
+has served on the boards of several of India's blue chip companies and public institutions.
+Ms. Bijapurkar holds a BSc (Hons) degree in Physics from Delhi University and a post graduate diploma
+in management from the Indian Institute of Management, Ahmedabad. Her over four decades of work
+experience in strategy consulting and market research includes her own consulting practice, and
+employment with McKinsey & Company, MARG (now Nielsen India), Mode Services (now TNS India).
+May 21, 2021
+companies & section 8 companies): 3)
+1)
+Sun Pharma Laboratories Limited
+2)
+of Committees of other public
+Companies:
+Sun Pharma Distributors Limited
+4)
+Nestle India Limited
+5)
+VST Industries Limited
+6) Cummins India Limited
+7)
+Apollo Hospital Enterprise Limited
+Mahindra & Mahindra Financial Services Limited
+•
+•
+Stakeholders Relationship Committee - Chairperson
+Nature of Industry:
+The Company is engaged into development, manufacture, sale, trading, marketing and export of various
+pharmaceutical products.
+(ii) Date or expected date of commencement of commercial production:
+The Company carries on pharmaceutical business since its incorporation.
+(iii) In case of new companies, expected date of commencement of activities as per project approved by financial
+institutions appearing in the prospectus:
+Not Applicable
+(iv) Financial performance based on given indicators:
+(i)
+Standalone Financial Results:
+Profit/(Loss) after Tax
+Total Equity (Share capital + other equity)
+Revenue from operations
+Earnings Per Share
+Consolidated Financial Results:
+2021-22
+He has served on the Councils of Western Region as also All India level of the Institute of Chartered
+Accountants of India which has the task of development and regulation of profession of accountancy in
+India. During his tenure on the Council, he served on several committees and contributed significantly to
+the work of Board of Studies which is responsible for education and system of training of students. He also
+served as Chairman of Committees on direct and indirect taxation.
+May 25, 2018
+Particulars
+General Information:
+I.
+(Refer Explanatory Statement for Item Nos. 7 & 9)
+Nomination and Remuneration Committee - Chairperson
+Risk Management Committee - Member
+Corporate Social Responsibility Committee - Member
+• Strategy Committee
+5) Cummins India Limited
+•
+Member
+Stakeholders Relationship Committee - Member
+• Risk Management Committee - Member
+•
+Corporate Social Responsibility Committee Member
+. Nomination and Remuneration Committee - Chairperson
+None
+No. of Shares held in the Company Nil
+(singly or jointly as first holder) as
+on March 31, 2022:
+314
+Notice
+STATEMENT OF INFORMATION FOR THE MEMBERS PURSUANT TO SECTION II OF PART II OF SCHEDULE V
+TO THE COMPANIES ACT, 2013
+Ms. Rama Bijapurkar
+65 Years
+companies (excluding foreign
+•
+Date of First appointment on the
+Board:
+Corporate Social Responsibility Committee - Chairman
+Audit and Risk Management Committee - Member
+4) Sun Pharma Laboratories Limited
+• Audit Committee - Member
+•
+•
+Nomination and Remuneration Committee - Chairman
+•
+Corporate Social Responsibility Committee Member
+None
+No. of Shares held in the Company 8,000 Equity Shares
+on March 31, 2022:
+312
+Notice
+Particulars
+Age
+Inter-se Relationship between
+Directors:
+•
+3) PHL Fininvest Private Limited
+• Audit Committee - Member
+Sun Pharma Laboratories Limited
+Directorship held in other
+2)
+Piramal Capital & Housing Finance Limited
+Suzlon Energy Limited
+4)
+PHL Fininvest Private Limited
+companies & section 8 companies): 3)
+5) Capricorn Realty Limited
+6) Aashni Ecommerce Private Limited
+7) Kudal Real Estate Private Limited
+Membership / Chairmanship
+of Committees of other public
+Companies:
+8) Banda Real Estate Private Limited
+9) Connect Capital Private Limited
+1) Piramal Capital & Housing Finance Limited
+• Audit & Risk Management Committee - Chairman
+2) Capricorn Realty Limited
+Brief resume of the Director
+including nature of expertise in
+specific functional areas:
+Dr. Pawan Goenka
+(singly or jointly as first holder) as
+•
+Nomination and Remuneration Committee - Member;
+• Corporate Social Responsibility Committee - Member;
+Stakeholder's Relationship Committee - Chairman;
+•
+67 Years
+Risk Management Committee - Chairman
+Inter-se Relationship between
+Directors:
+None
+No. of Shares held in the Company Nil
+(singly or jointly as first holder) as
+on March 31, 2022:
+Scaling up Specialty. Leading with Care.
+313
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Particulars
+Age
+Brief resume of the Director
+including nature of expertise in
+specific functional areas:
+• Audit Committee - Member;
+2) Bosch Limited
+•
+Board:
+Dr. Goenka is past President of Society of Automotive Engineers India (SIAM), the ARAI Governing
+Council, and served as a Board Member of National Skills Development Corporation (NSDC) and a
+member of Confederation of Indian Industries (CII) National Council. He is currently serving as the
+Chairman of the Board of Governors of IIT Madras. Dr. Goenka is the Chairperson of Indian National
+Space Promotion and Authorisation Centre (IN-SPACE), Department of Space, Government of India and
+of the Steering Committee for Advancing Local value-add and Exports (SCALE), an initiative under the
+Ministry of Commerce & Industry. Dr. Goenka also serves as an Independent Director on the Board of
+Bosch Limited.
+Date of First appointment on the
+May 21, 2021
+Dr. Pawan Goenka earned his B. Tech. in Mechanical Engineering from IIT, Kanpur and Ph.D. from
+Cornell University, U.S.A. He is also a Graduate of Advanced Management Program from Harvard
+Business School. He worked at General Motors R&D Centre in Detroit, U.S.A. from 1979 to 1993. He
+joined Mahindra & Mahindra Ltd., as General Manager (R&D) and led the development of the Scorpio
+SUV. Dr. Goenka is credited with building a strong R&D infrastructure and a wide product portfolio for
+Mahindra and is also widely recognised as a statesman of the India Auto Industry.
+• Risk Management Committee - Member
+Directorship held in other
+1)
+Dr. Goenka has received several awards during his tenure such as Burt L. Newkirk Award, Charles L.
+McCuen Achievement Award, the FISITA Medal of Honour, Automotive Man of the Year Award, CV
+Man of the Year Award, Lifetime Achievement Award & Param Shreshth Award. Dr. Goenka was also
+honoured with the Lifetime Achievement Award for his unparalled contribution to the automotive
+industry by the Automotive Component Manufacturers Association (ACMA) in March 2022. He
+received the Distinguished Alumni Award from IIT Kanpur in 2004 and was also conferred with the
+Doctor of Science (honoris causa) in 2015. He is a Fellow of SAE International and of The Indian
+National Academy of Engineers and a member of National Academy of Engineers, USA.
+companies (excluding foreign
+Mahindra Agri Solutions Limited
+Bosch Limited
+companies & section 8 companies):
+Membership / Chairmanship
+of Committees of other public
+Companies:
+1) Mahindra Agri Solutions Limited
+2)
+Dr. Goenka served on the boards of several Mahindra Group Companies, both domestic and
+International. He retired from Mahindra as Managing Director and CEO on April 1, 2021.
+5
+USA
+rnt.helpdesk@linkintime.co.in
+Fax: (022)-49186060
+E-mail: sunpharma@linkintime.co.in
+33.
+32. S.C Terapia S. A., Cluj, Romania
+JSC Biosintez, Penza, Russia
+SUN HOUSE
+Ranbaxy Pharmaceuticals., (Pty)
+Ltd., Roodepoort, Johannesburg,
+South Africa
+Ohm Laboratories Inc.,
+Terminal Road, New Brunswick,
+New Jersey 08901, USA.
+SUN
+Plot No. 201 B/1, Western Express Highway,
+Goregaon (E), Mumbai 400063, Maharashtra, India.
+Tel: (+91 22) 4324 4324, Fax: (+91 22) 4324 4343
+CIN: L24230GJ1993PLC019050
+PHARMA
+Taro Pharmaceuticals Inc.,
+130 East Drive, Brampton,
+Ontario L6T 1C1, Canada.
+34.
+CANADA
+Kedah, Malaysia
+P.O. Box 10347 Haifa Bay,
+29. Ranbaxy Egypt (L.L.C.), October City,
+Giza, Egypt
+30. Ranbaxy Malaysia Sdn. Bhd.,
+DR. PAWAN GOENKA
+Ontario, Canada
+3
+ISRAEL
+27
+27.
+Taro Pharmaceutical Industries Ltd.,
+Haifa Bay, Israel
+28.
+Alkaloida Chemical Company Zrt.,
+Tiszavasvari, Kabay, Hungary
+4
+Tel: (022)-49186000
+31. Ranbaxy Nigeria Limited, Lagos
+(Magboro), Nigeria
+Chemistry and Discovery Research
+Israel, 14 Hakitor Street,
+2624761, Israel.
+Halol, Gujarat, India
+Income Tax Department u/s 197
+of Income Tax Act, 1961
+Ponda, Goa, India
+i)
+This communication is not exhaustive and does not
+purport to be a complete analysis or listing of all
+potential tax consequences in the matter of dividend
+payment. Shareholders should consult their tax
+advisors for requisite action to be taken by them.
+In the event of any income tax demand
+(including interest, penalty, etc.) arising from
+any misrepresentation, inaccuracy or omission
+of information provided by the Member/s, such
+Member/s will be responsible to indemnify the
+Company and also, provide the Company with all
+information/documents and co-operation in any
+assessment/ appellate proceedings.
+In case TDS is deducted at a higher rate, an option is
+still available with the shareholder to file the return
+of income and claim an appropriate refund from the
+Income-tax department.
+h)
+g)
+f)
+The aforesaid documents such as Form No. 15G/
+15H, documents under section 196, 197A, FPI
+Registration Certificate, Tax Residency Certificate,
+Lower/Nil Tax deduction certificate etc. can be
+submitted to the Company/ Company's RTA at
+sunpharmadivtax@linkintime.co.in or can be
+uploaded on the link https://linkintime.co.in/
+formsreg/submissionof-form-15g-15h.html on or
+before August 22, 2022 to enable the Company
+to determine the appropriate TDS/ withholding
+tax rate applicable. Any communication on the tax
+determination/ deduction received post August 22,
+2022 shall not be considered for the payment of Final
+Dividend for the financial year 2021-22.
+The Company will issue soft copy of TDS certificate
+to its shareholders through e-mail registered with
+Company/ Company's RTA post payment of dividend.
+Shareholders will be able to download the TDS
+certificate from the Income Tax Department's
+website https://incometaxindiaefiling.gov.in
+(refer to Form 26AS).
+d)
+c)
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+319
+Scaling up Specialty. Leading with Care.
+deduction certificate issued by
+400 083
+Overseas Trust
+The tax withholding rates referred above are based on
+the law prevailing as on the date.
+6.
+j)
+e)
+5.
+Managing Director
+Dadra, Dadra & Nagar Haveli, India
+4.
+DILIP S. SHANGHVI
+Baddi, Himachal Pradesh, India
+3.
+2.
+Non-Independent Director
+Chairman, Non-Executive and
+1.
+ISRAEL MAKOV
+BOARD OF DIRECTORS
+CORPORATE INFORMATION
+320
+In the event there is ambiguity in law or interpretation
+or matters concerning tax withholding, the highest
+applicable tax withholding rate shall be considered on
+a conservative basis.
+Application of TDS rate is subject to necessary
+verification as per details as available in Register of
+Members as on the Record Date, i.e. Monday, August
+22, 2022, and other documents available with the
+Company/ Company's RTA.
+All queries/grievances/issues in this regard shall be
+attended/ addressed on rnt.helpdesk@linkintime.co.in.
+LBS Marg, Vikhroli (West),
+Mumbai
+8.
+LINK INTIME INDIA PVT. LTD.
+SAILESH T. DESAI
+18.
+Whole-time Director
+19.
+Sun Pharma Laboratories Ltd.,
+KALYANASUNDARAM
+SUBRAMANIAN
+Whole-time Director
+Setipool, Sikkim, India
+20. Sun Pharma Laboratories Ltd.,
+OPERATIONAL MANUFACTURING
+PLANTS
+Dewas, Madhya Pradesh, India
+Karkhadi, Gujarat, India
+Paonta Sahib, Himachal Pradesh, India
+Silvassa, Dadra & Nagar Haveli, India
+10. Ahmednagar, Maharashtra, India
+Ankleshwar, Gujarat, India
+Dahej, Gujarat, India
+Maduranthakam, Tamilnadu, India
+Malanpur, Madhya Pradesh, India
+Panoli, Gujarat, India
+Sun Pharma Laboratories Ltd., Jammu,
+Jammu & Kashmir, India
+Ranipool, Sikkim, India
+Guwahati, Assam, India
+35. Chattem Chemicals, Inc.,
+Sun Pharma Laboratories Ltd.,
+Non-Executive and Non-Independent Director
+7.
+/Concept, content and design at AICL (hello@aicl.in)
+Mohali, Punjab, India
+Non-Executive and Lead Independent Director
+9.
+GAUTAM DOSHI
+Non-Executive and Independent Director
+11.
+12.
+RAMA BIJAPURKAR
+13.
+Non-Executive and Independent Director
+14.
+15.
+SUDHIR V. VALIA
+16.
+Toansa, Punjab, India
+17.
+Chattanooga, US
+36. Ohm Laboratories Inc., New
+Brunswick, New Jersey, US
+Ohm Laboratories Inc., North
+Brunswick, NJ, New Jersey, US
+38. Pharmalucence Inc., Billerica,
+Massachusetts, US
+Sun Pharma Advanced Research
+Centre, F.P.27, Part Survey
+No. 27, C.S. No. 1050, TPS
+No. 24, Village Tandalja, District,
+Vadodara 390 012, Gujarat.
+24.
+Sun Pharmaceutical Industries
+(Australia), Port Fairy, Australia
+2
+INDIA
+25. Sun Pharmaceutical (Bangladesh) Ltd.,
+Joydevpur, Gazipur, Bangladesh
+Village Sarhaul, Sector-18,
+Gurugram - 122 015, Haryana.
+AUDITORS
+26. Taro Pharmaceuticals Inc., Brampton,
+SRBC & CO. LLP
+Chartered Accountants, Mumbai
+REGISTRARS & SHARE TRANSFER
+AGENTS
+(Australia), Latrobe, Australia
+23. Sun Pharmaceutical Industries
+22. Zenotech Laboratories Ltd., Medchal-
+Malkajgiri Dist., Telangana, India
+COMPANY SECRETARY &
+COMPLIANCE OFFICER
+ANOOP DESHPANDE
+39.
+Pola Pharma Inc., Saitama, Japan
+OFFICES
+REGISTERED OFFICE
+Sun Pharma Advanced Research Centre
+(SPARC), Tandalja,
+Vadodara 390 012, Gujarat.
+CORPORATE OFFICE
+Sun House, CTS No. 201 B/1,
+Western Express Highway,
+Goregaon (E), Mumbai 400 063,
+Maharashtra.
+C 101, 247 Park,
+CIN: L24230GJ1993PLC019050
+Tel: (022)-4324 4324
+E-mail: secretarial@sunpharma.com
+MAJOR R&D CENTRES
+37.
+21. Sun Pharmaceutical Medicare Ltd.,
+Baska, Gujarat, India
+1
+INDIA
+CHIEF FINANCIAL OFFICER
+C. S. MURALIDHARAN
+Fax: (022)-4324 4343
+www.sunpharma.com
+5.
+or more in the said previous year.
+1. Tax Residency certificate issued by revenue authority of country of
+residence of shareholder for the year in which dividend is received
+Permanent Account Number (PAN)
+2.
+3.
+Form No. 10F duly filled in & signed
+20% (plus applicable
+surcharge and cess)
+Rate specified in
+the Certificate
+To avail beneficial rate of tax as per applicable tax treaty, following
+documents would be required:
+4. Self-declaration by the shareholder for non-existence of permanent
+establishment/ fixed base in India
+(Note: Application of beneficial tax treaty rate shall depend upon the
+completeness of the documents submitted by the non-resident shareholder
+and review to the satisfaction of the Company)
+Lower/nil tax deduction certificate u/s 195(3) obtained from Income Tax
+Authority. Self-declaration confirming that the income is received on its
+own account and not on behalf of the Foreign Bank.
+The overseas trust can also be given the tax treaty rate. However, the
+same can be litigative and hence, on a conservative basis, withholding
+on dividends paid to overseas trust should be as per Income-tax Act,
+1961 only
+Lower/Nil tax deduction certificate obtained from Income Tax Authority
+3.
+Indian Branch of a Foreign Bank
+5. Self-declaration by the shareholder regarding the satisfaction of
+the place of effective management (POEM), principal purpose test,
+General Anti Avoidance Rule (GAAR), Simplified Limitation of Benefit
+test (wherever applicable), as regards the eligibility to claim recourse
+to concerned Double Taxation Avoidance Agreements.
+FPI registration number/ certificate.
+Documents Required (if any)
+cess) or tax treaty
+rate, whichever is
+beneficial
+In view of the above, the Company would check
+whether shareholder is a 'specified person' under
+section 206AB and if any shareholder is found as a
+'specified person' as defined in Section 206AB then
+the company shall be liable to deduct tax at source at
+higher rate in such case.
+b)
+NON-RESIDENT SHAREHOLDERS
+Tax deducted at source on dividend payment to non-resident shareholders if the non-resident shareholders submit and
+register following documents with the Company/ Company's RTA - Link Intime India Private Limited
+Sr.
+Particulars
+No.
+1. Foreign Institutional Investors (FIls)/
+Foreign Portfolio Investors (FPIs)
+2.
+Other Non-resident shareholders
+Rate of Deduction
+of Tax at Source
+20% (plus applicable
+surcharge and cess)
+20% (plus applicable
+surcharge and
+NIL
+4.
+⚫ the aggregate TDS and TCS in his case is 50,000
+⚫ has not furnished the return of income for the
+assessment year relevant to the previous year
+immediately preceding financial year in which tax
+is required to be deducted, for which time limit
+to furnish return of income under section 139(1)
+of the Act has expired; and
+If the provision of section 206AA of the Act (deduction
+of tax at higher rate for non-furnishing of PAN by the
+deductee) is applicable to a specified person, in addition
+to the provision of this section, the tax shall be deducted
+at higher of the two rates provided in this section and in
+section 206AA of the Income-tax Act, 1961.
+Notice
+Further, DIT (Systems) vide Notification no. 1 of
+2022 pursuant to CBDT circular no. 11 of 2021
+and circular no. 10 of 2022 notified a functionality
+"Compliance Check for Sections 206AB & 206CCA"
+on the reporting portal of the Income-tax Department
+to facilitate the tax deductor/collector to check if
+the deductee/collectee is a 'specified person' under
+Section 206AB.
+Availability of Lower/Nil tax
+'Specified person' means a person who -
+45,668.2
+43,061.4
+b) the Directors have selected such accounting policies
+and applied them consistently and made judgments
+and estimates that are reasonable and prudent so as
+to give a true and fair view of the state of affairs of the
+Company as at March 31, 2022, and of the loss of the
+Company for the year ended on that date;
+44,813.2
+27,993.7
+(999.9)
+8,424.0
+34,058.2
+22,846.8
+8,555.7
+3,068.6
+ICRA Ltd. has reaffirmed the highest credit rating of
+'[ICRA] A1+'/ '[ICRA] AAA (Stable)' for the bank facilities,
+short term/long term borrowings and commercial paper
+programs of the Company.
+Further, CRISIL Ltd. has also reaffirmed the highest credit
+rating of 'CRISIL A1+ and CRISIL AAA/Stable' for short term
+& long term bank facilities and commercial paper programs
+of the Company.
+4.
+3.
+2.
+1.
+DIRECTORS AND KEY MANAGERIAL PERSONNEL
+During the year, following were the changes in Directors/
+Key Managerial Personnel:
+The Board of Directors of the Company at its meeting
+held on May 30, 2022 has approved the Scheme
+of Amalgamation of Sun Pharmaceutical Medicare
+Limited, Green Eco Development Centre Limited,
+Faststone Mercantile Company Private Limited,
+Realstone Multitrade Private Limited, Skisen Labs
+Private Limited, Wholly-owned Subsidiaries of the
+Company with the Company.
+1, 2021 with appointed date as January 1, 2020
+and Sun Pharma Global FZE has been merged with
+the Company.
+thereunder. The Scheme is effective from October
+2.
+National Company Law Tribunal (NCLT) vide its Order
+dated August 31, 2021, sanctioned the Scheme of
+Amalgamation and Merger of Sun Pharma Global FZE
+("Transferor Company"), an indirect wholly owned
+subsidiary of the Company with Sun Pharmaceutical
+Industries Limited ("Company") pursuant to Section
+234 read with Sections 230 to 232 of the Companies
+Act, 2013 and the relevant rules and regulations made
+1.
+SCHEME OF AMALGAMATION
+Details pertaining to entities that became subsidiaries/
+joint ventures/ associates and those that ceased to be the
+subsidiaries/joint ventures/ associates of the Company
+during the year under review are provided in the notes to
+the Consolidated Financial Statements, forming part of
+the Annual Report.
+The highlights of performance of subsidiaries, joint
+ventures and associates and their contribution to the
+overall performance of the Company during the financial
+year under review is given under Annexure 'A' to the
+Consolidated Financial Statements forming part of the
+Annual Report.
+SUBSIDIARIES/JOINT VENTURES/ASSOCIATES
+The statement containing the salient features of the
+Financial Statements of the Company's subsidiaries/joint
+ventures/ associates is given in Form AOC - 1, provided in
+Notes to the Consolidated Financial Statements, forming
+part of the Annual Report.
+159,645.5
+136,120.8
+140,052.7
+365,980.9
+353,200.5
+CHANGES IN CAPITAL STRUCTURE
+The Directors do not propose any transfer to reserve.
+TRANSFER TO RESERVES
+The dividend payout is in accordance with the Company's
+Dividend Distribution Policy. The policy is available on the
+website of the Company and can be accessed through the
+web link: https://sunpharma.com/policies/.
+The total dividend payout for FY2021-22 would be * 10/-
+(Rupees Ten only) per equity share of 1/- (Rupees One
+only) each [previous year 7.50/- (Rupees Seven and Paisa
+Fifty only) per equity share of 1/- (Rupee One only) each].
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+33
+Scaling up Specialty. Leading with Care.
+In addition to above, your Directors have recommended a
+final dividend of 3/- (Rupees Three only) per equity share
+of 1/- (Rupee One only) each [previous year * 2/- (Rupees
+Two only) per equity share of 1/- (Rupee One only) each]
+for the year ended March 31, 2022, subject to the approval
+of the equity shareholders at the ensuing 30th Annual
+General Meeting of the Company.
+During the year under review, your Directors at their
+meeting held on January 31, 2022 declared an interim
+dividend of 7/- (Rupees Seven only) per equity share of
+1/- (Rupee One only) each [previous year 5.50/- (Rupees
+Five and Paisa Fifty only) per equity share of 1/- (Rupee
+One only) each] for the year ended March 31, 2022. The
+interim dividend was paid on February 18, 2022 to those
+shareholders who held shares as on February 10, 2022,
+being the record date.
+DIVIDEND
+MANAGEMENT DISCUSSION AND ANALYSIS
+The Management Discussion and Analysis as prescribed
+under Part B of Schedule V read with Regulation 34(3) of
+the Listing Regulations is provided in a separate section
+and forms part of this Report.
+the Directors have devised proper systems to ensure
+compliance with the provisions of all applicable
+laws and that such systems were adequate and
+operating effectively.
+the Directors have laid down internal financial controls
+to be followed by the Company and that such internal
+financial controls are adequate and were operating
+effectively; and
+the Directors have taken proper and sufficient care
+for the maintenance of adequate accounting records
+in accordance with the provisions of the Act for
+safeguarding the assets of the Company and for
+preventing and detecting fraud and other irregularities;
+During the year under review there was no change in the
+Capital Structure of the Company.
+in the preparation of the annual accounts for the
+financial year ended March 31, 2022, the applicable
+accounting standards have been followed and there
+are no material departures from the same;
+CREDIT RATING
+a)
+159,645.5
+376,456.5
+365,980.9
+Closing balance in Retained Earnings
+*Refer Note 54(12) of Standalone Financial Statements
+MATERIAL CHANGES AND COMMITMENTS
+d)
+AFFECTING THE FINANCIAL POSITION OF THE
+COMPANY, BETWEEN THE END OF THE FINANCIAL
+YEAR AND THE DATE OF THIS REPORT
+the Directors have prepared the annual accounts on a
+going concern basis;
+e)
+There have been no material changes and commitments
+affecting the financial position of the Company, between
+the end of the financial year and the date of this report.
+CONSOLIDATED ACCOUNTS
+The consolidated financial statements for the year ended
+March 31, 2022, have been prepared in accordance with
+Indian Accounting Standards (Ind AS) notified under the
+Companies (Indian Accounting Standards) Rules, 2015.
+DIRECTORS' RESPONSIBILITY STATEMENT
+Pursuant to the requirements under Section 134(5) read
+with Section 134(3)(c) of the Companies Act, 2013 ('Act')
+with respect to Directors' Responsibility Statement, it is
+hereby confirmed that:
+Road Ahead
+5.
+6.
+Ms. Rekha Sethi retired and ceased to be the
+Independent Director w.e.f. August 31, 2021 i.e.
+upon conclusion of the 29th Annual General Meeting.
+Ms. Rama Bijapurkar has been appointed as the
+Independent Director w.e.f. May 21, 2021 for a
+period of five years by the shareholders at the
+29th Annual General Meeting.
+In terms of provisions of sections 139 read with the
+Companies (Audit and Auditors) Rules, 2014.S RBC & Co
+LLP, Chartered Accountants are eligible to be re-appointed
+for a further term of 5 (five) years.
+SRBC & Co LLP, Chartered Accountants, (Firm's Regn.
+No. 324982E/E300003), were appointed as the Statutory
+Auditors of the Company for a period of 5 (five) years at the
+25th Annual General Meeting of the Company to hold office
+till the conclusion of the 30th Annual General Meeting of
+the Company.
+Statutory Auditors
+AUDITORS
+WHISTLE BLOWER POLICY/ VIGIL MECHANISM
+To create enduring value for all stakeholders and ensure
+the highest level of honesty, integrity and ethical behaviour
+in all its operations, the Company has adopted a 'Global
+Whistle Blower Policy' for Sun Pharmaceutical Industries
+Limited and all its subsidiaries, in addition to the existing
+Global Code of Conduct that governs the actions of its
+employees. Further details on vigil mechanism of the
+Company are provided in the Corporate Governance
+Report, forming part of this Report.
+Outcome of Enterprise Risk Assessments covering
+Company's various businesses and functions, are one of the
+key input for the annual internal audit plan.
+The ERM team engages with all Function heads to identify
+internal and external events that may have an adverse
+impact on the achievement of Company's objectives and
+periodically monitors changes in both internal and external
+environment leading to emergence of a new threat/risk.
+These risks are captured in a risk register with all the
+relevant information such as risk area, risk description,
+risk rating, root cause and mitigation plans, action items
+etc. The risk register is refreshed semi-annually. Risks are
+categorised into various categories viz. Strategic, Financial,
+Operational, Compliance, Cyber, Geo-Political etc. During
+FY 21-22, the focus was on reviewing effectiveness of
+actions taken to mitigate the identified risks as well as to
+identify the new risks and associated risk-mitigation plans,
+emerging out of constantly changing geo-political situation
+across the globe.
+The Company has developed and implemented an
+integrated Enterprise Risk Management (ERM) Framework
+through which it identifies, monitors, mitigates and reports,
+key risks that impact the Company's ability to meet its
+strategic objectives.
+The Board of Directors has constituted a Risk Management
+Committee which is entrusted with the responsibility
+of overseeing various organizational risks. The Risk
+Management Committee also assesses the adequacy of
+mitigation plans to address such risks. The Corporate
+Governance Report, which forms part of this report,
+contains the details of Risk Management Committee of the
+Company. An overarching Risk Management Policy which
+was approved by the Board is in place.
+RISK MANAGEMENT
+The Company has received the consent, certificate of
+eligibility and a certificate issued by the Peer Review Board
+of the Institute of Chartered Accountants of India (ICAI)
+in accordance with Sections 139, 141 and other applicable
+provisions of the Act and Rules issued thereunder and as
+required under the Listing Regulations, from S RBC & Co
+LLP, chartered Accountants.
+GIA's functioning is governed by the Audit Charter, duly
+approved by the Audit Committee of the Board, which
+stipulates matters contributing to the proper and effective
+conduct of the audit.
+Financial Statements
+Board's Report
+Statutory Reports
+Corporate Overview
+36
+An independent and empowered Global Internal Audit
+Function (GIA) at the corporate level with support from
+a Big 4/ equally reputed audit firms, wherever required,
+carries out risk-based audits. GIA audits all businesses to
+ensure that business process controls are adequate and
+are functioning effectively. These reviews include financial,
+operational and compliance controls and risk mitigation
+plans. The Company's operating management closely
+monitors the internal control environment and ensures that
+the audit recommendations are effectively implemented.
+GLOBAL INTERNAL AUDIT
+The Company has a well-established internal financial
+controls framework, which is designed to continuously
+assess the adequacy, effectiveness and efficiency of
+internal financial controls. The management is committed
+to ensuring an effective internal financial controls
+environment, commensurate with the size and complexity
+of the business, which provides an assurance regarding
+the reliability of financial reporting and the preparation of
+financial statements for external purposes in accordance
+with generally accepted accounting principles.
+INTERNAL FINANCIAL CONTROLS
+The Company believes that internal controls are the
+prerequisite of governance and that action emanating
+out of agreed business plans should be exercised within
+a framework of checks and balances. The Company has
+a well-established internal controls framework, which is
+designed to continuously assess the adequacy, effectiveness
+and efficiency of internal controls. The management
+is committed to ensuring an effective internal controls
+environment, commensurate with the size and complexity
+of the business, which provides an assurance on compliance
+with internal policies, applicable laws, regulations, ensures
+accuracy of records, promotes operational efficiency,
+protects resources and assets and overall minimize the risks.
+INTERNAL CONTROLS
+The Audit Committee of the Board monitors performance
+of the Internal Audit Function, periodically reviews key
+findings and provides strategic guidance.
+Accordingly, the Board of Directors at its meeting held on
+May 30, 2022, based on the recommendation of the Audit
+Committee have approved and recommended the re-
+appointment of SRB C & Co LLP, Chartered Accountants,
+(Firm's Regn. No. 324982E/ E300003), as the Statutory
+Auditors, for a further period of 5 (five) years i.e. from
+the conclusion of the 30th Annual General Meeting till
+the conclusion of the 35th Annual General Meeting of
+the Company, for approval of the Shareholders of the
+Company at the ensuing 30th Annual General Meeting.
+The Auditor's Report for the financial year ended March 31,
+2022, has been issued with an unmodified opinion, by the
+Statutory Auditors.
+Secretarial Auditor
+38
+During the financial year ended March 31, 2022, two
+complaints pertaining to sexual harassment were received.
+The complaints were resolved and there are no complaints
+pending as at the end of the financial year.
+DISCLOSURE UNDER THE SEXUAL HARASSMENT
+OF WOMEN AT WORKPLACE (PREVENTION,
+PROHIBITION AND REDRESSAL) ACT, 2013
+Your Company strongly believes in providing a safe and
+harassment free workplace for each and every individual
+working for the Company through various interventions
+and practices. It is the continuous endeavour of the
+Management of the Company to create and provide
+an environment to all its employees that is free from
+discrimination and harassment including sexual harassment.
+The Company has adopted a policy on prevention,
+prohibition and redressal of sexual harassment at workplace
+in line with the provisions of the Sexual Harassment
+of Women at Workplace (Prevention, Prohibition and
+Redressal) Act, 2013 and the Rules made thereunder.
+The Company has arranged various interactive awareness
+workshops in this regard for the employees at the
+manufacturing sites, R & D set ups & corporate office
+during the year under review. The Company has submitted
+the Annual Returns to the local authorities, as required
+under the above-mentioned Act.
+Your Directors would like to take this opportunity to
+express their gratitude and appreciation for the passion,
+dedication and commitment of the employees and look
+forward to their continued contribution.
+FY2021-22 was a very challenging year for everyone. Our
+38,000+ strong global workforce worked relentlessly to
+ensure medicines continue to reach patients who rely on us.
+As lockdowns continued across the world, our teams being
+part of essential services, ensured our 43 manufacturing
+sites, distribution centres, R&D centres and sales offices
+worldwide continue to operate. We are grateful to our
+employees who made this happen with a safety-first mind
+set. The top priority for the Human Resource function was
+providing a safe work environment to employees globally.
+HUMAN RESOURCES
+presentations/.
+The Business Responsibility and Sustainability Report of the
+Company for the year ended March 31, 2022, is provided
+in a separate section and forms part of this Annual Report
+and is also made available on the website of the Company
+at https://sunpharma.com/investors-annual-reports-
+BUSINESS RESPONSIBILITY & SUSTAINABILITY
+REPORT
+The Board has accorded its consent to set off the excess
+amount spent by the Company on its CSR Activities against
+the requirement to spend in terms of Section 135 of the
+Companies Act, 2013 in any subsequent year(s).
+The annual report on CSR activities containing details of
+expenditure incurred by the Company and brief details
+on the CSR activities are provided in 'Annexure - D' to
+this Report.
+In compliance with the requirements of Section 135
+of the Act read with the Companies (Corporate Social
+Responsibility Policy) Rules, 2014, the Board of Directors
+has constituted a Corporate Social Responsibility (CSR)
+Committee. The details of membership of the Committee
+and the meetings held are detailed in the Corporate
+Governance Report, forming part of this Report. The
+CSR Policy of the Company is available on the website of
+the Company and can be accessed through the web link:
+https://sunpharma.com/policies/.
+CORPORATE SOCIAL RESPONSIBILITY
+The Company is required to maintain Cost Records as
+specified by the Central Government under Section 148(1)
+of the Act and accordingly, such accounts and records are
+made and maintained by the Company.
+The Board has appointed K D & Co, Cost Accountants,
+(Firm's Registration No. 004076) as Cost Auditor of the
+Company for conducting Cost Audit in respect of Bulk
+Drugs & Formulations of your Company for the financial
+year 2022-23.
+Cost Auditor
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+37
+33
+Scaling up Specialty. Leading with Care.
+In accordance with the provision of Regulation 24A of
+the Listing Regulations, Secretarial Audit of two material
+unlisted Indian subsidiaries of the Company namely, Sun
+Pharma Laboratories Limited (SPLL) and Sun Pharma
+Distributors Limited (SPDL), was undertaken by KJB &
+Co. LLP, Practicing Company Secretaries, Mumbai and the
+Secretarial Audit Reports issued by them are provided as
+'Annexure - C2' and 'Annexure - C3' respectively to this
+Report. The Secretarial Audit Reports for these material
+unlisted Indian subsidiaries do not contain any qualification,
+reservation or adverse remark.
+The Secretarial Audit Report for the year does not contain
+any qualification, reservation or adverse remark.
+The Board had appointed KJB & Co. LLP, Practicing
+Company Secretaries, to undertake the Secretarial Audit of
+the Company for the financial year ended March 31, 2022.
+The Secretarial Audit Report in the Form No. MR - 3 for the
+year is provided as 'Annexure - C1' to this Report.
+As required under Section 134(3)(h) of the Act, details of
+transactions entered with related parties under the Act
+exceeding ten percent of the annual consolidated turnover
+as per the last audited financial statements are given in
+Form AOC-2 provided as 'Annexure - B' to this Report.
+Dr. Pawan Goenka has been appointed as the
+Independent Director w.e.f. May 21, 2021 for a
+period of five years by the shareholders at the
+29th Annual General Meeting.
+The policy on Related Party Transactions as approved
+by the Board is available on the website of the Company
+and can be accessed through the web link: https://www.
+sunpharma.com/policies. All contracts/ arrangements/
+transactions entered by the Company during the year under
+review with the related parties were in the ordinary course
+of business and on an arm's length basis.
+The details pertaining to the meetings and composition of
+the Committees of the Board are included in the Corporate
+Governance Report, which forms part of this Report.
+The Chairman and other members of the Board discussed
+upon the performance evaluation outcome and concluded
+that they were satisfied with the overall performance of
+the Board and Committees of the Board and Directors
+individually. The Board also assessed the fulfillment of the
+independence criteria as specified in Listing Regulations,
+by the Independent Directors of the Company and their
+independence from the management.
+EVALUATION OF PERFORMANCE OF THE BOARD, ITS
+COMMITTEES AND INDIVIDUAL DIRECTORS
+During the year, annual performance evaluation of the
+Board and Committees of the Board, individual Directors
+including the Chairman of the Company, was carried out as
+per the criteria and process approved by Nomination and
+Remuneration Committee, which is in line with the SEBI
+Guidance Note on Board Evaluation.
+In compliance with the requirements of Regulation
+25(7) of the Listing Regulations, the Company has put in
+place a Familiarisation Programme for the Independent
+Directors to familiarise them with the Company, their
+roles, rights, responsibilities in the Company, nature of
+the industry in which the Company operates, business
+model etc. The details of the Familiarisation Programme
+conducted are available on the website of the Company:
+https://sunpharma.com/policies/.
+FAMILIARISATION PROGRAMME FOR THE
+INDEPENDENT DIRECTORS
+In the opinion of the Board, the Independent Directors fulfil
+the conditions specified under the Act and Listing Regulations
+and are independent of the management. The Board skill/
+expertise/ competencies matrix of all the Directors, including
+the Independent Directors is provided in the Corporate
+Governance Report forming part of this Annual Report.
+DECLARATION BY INDEPENDENT DIRECTORS
+The Company has received declarations from all the
+Independent Directors confirming that they meet the
+criteria of independence as prescribed under Section 149(6)
+of the Act and under Securities and Exchange Board of
+India (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 ("Listing Regulations").
+The necessary disclosures required under the Companies
+Act, 2013 and the SEBI (Listing Obligations & Disclosure
+Requirements) Regulations, 2015 and Secretarial
+Standards-2 on General Meetings issued by the Institute
+of Company Secretaries of India, for the above-mentioned
+appointments/ re-appointment are provided in the
+30th Annual General Meeting Notice of the Company.
+Mr. Sailesh T. Desai and Mr. Israel Makov Directors
+of the Company, retire by rotation at the 30th Annual
+General Meeting.
+i.e. May 25, 2023 to May 24, 2028, subject to approval
+of the shareholders at the 30th Annual General Meeting.
+Financial Statements
+Board's Report
+The performance evaluation of the Non-Independent
+Directors including the Chairman of the Company and
+performance of the Board as a whole was discussed at the
+separate meeting of the Independent Directors.
+Statutory Reports
+34
+The Board of Directors at its meeting held on May
+30, 2022, on the recommendation by Nomination
+and Remuneration Committee, has approved the
+re-appointment of Mr. Gautam Doshi as Independent
+Director for further period of five years with effect from
+The Board of Directors at its meeting held on May
+30, 2022, on the recommendation by Nomination
+and Remuneration Committee, has approved the
+re-appointment and remuneration of Mr. Dilip
+Shanghvi as Managing Director for further period of
+five years with effect from i.e. April 1, 2023 to March
+31, 2028, subject to approval of the shareholders at
+the 30th Annual General Meeting.
+2.
+1.
+After the year end and up to the date of the Report,
+following were the changes:
+Mr. Anoop Deshpande has been appointed as
+Company Secretary and Compliance Officer effective
+from closure of business hours of January 31, 2022.
+Mr. Sunil Ajmera resigned from the position of
+Company Secretary and Compliance Officer w.e.f.
+the close of business hours of January 31, 2022.
+Mr. Vivek Chaand Sehgal resigned as the Independent
+Director with effect from September 1, 2021.
+895.6
+Corporate Overview
+REMUNERATION POLICY FOR DIRECTORS, KEY
+MANAGERIAL PERSONNEL AND OTHER EMPLOYEES
+AND CRITERIA FOR APPOINTMENT OF DIRECTORS
+For the purpose of selection of any Director, the
+Nomination and Remuneration Committee identifies
+persons of integrity who possess relevant expertise,
+experience and leadership qualities required for the
+position. The Committee also ensures that the incumbent
+fulfils such criteria with regard to qualifications, positive
+attributes, independence, age and other criteria as
+laid down under the Act, Listing Regulations or other
+applicable laws and the diversity attributes as per the Board
+Diversity Policy of the Company. The Board has, on the
+recommendation of the Nomination and Remuneration
+Committee framed a Policy on remuneration of Directors,
+Key Managerial Personnel and other Employees.
+The salient features of the Remuneration Policy of the
+Company are as under:
+A.
+As on March 31, 2022, the Board has 6 (six) Committees.
+Audit Committee, Nomination and Remuneration
+Committee, Stakeholders Relationship Committee, Risk
+Management Committee, Corporate Social Responsibility
+Committee and Corporate Governance & Ethics Committee.
+COMMITTEES OF THE BOARD
+The Board of Directors of the Company met 5 (Five)
+times during the year under review. The dates of the
+Board meeting and the attendance of the Directors at
+the said meetings are provided in detail in the Corporate
+Governance Report, which forms a part of this Report.
+BOARD MEETINGS
+Information as per Section 197 (12) of the Act read
+with Rule 5(1) of the Companies (Appointment and
+Remuneration of Managerial Personnel) Rules, 2014
+is provided in 'Annexure - A' to this Report. Further,
+the information pertaining to Rule 5(2) & 5(3) of
+the Companies (Appointment and Remuneration
+of Managerial Personnel) Rules, 2014, pertaining
+to the names and other particulars of employees is
+available for inspection at the Registered office of
+the Company during business hours and pursuant
+to the second proviso to Section 136(1) of the Act,
+the Report and the accounts are being sent to the
+members excluding this. Any shareholder interested
+in obtaining a copy of the same may write to the
+Company Secretary & Compliance Officer either at the
+Registered/Corporate Office address or by email to
+secretarial@sunpharma.com.
+The complete Policy as approved by the Board
+is available on the website of the Company
+and can be accessed through the web link:
+https://sunpharma.com/policies/.
+Commission: The directors may be paid
+commission if approved by the shareholders.
+The shareholders may authorise the Board to
+declare commission to be paid to any director
+of the Board.
+Gratuity/group insurance: Personnel may also
+be awarded to group insurance and other key
+man insurance protection. Further as required
+by the law necessary gratuity shall be paid to
+the personnel.
+Non-monetary benefits: Senior management
+personnel of the Company may, on a case to
+case basis, be awarded customary non-monetary
+benefits such as discounted salary advance/ credit
+facility, rent free accommodation, Company cars
+with or without chauffer, share and share price
+related incentive, reimbursement of electricity
+and telephone bills etc.
+e)
+d)
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+35
+Scaling up Specialty. Leading with Care.
+Share based payments: The Board may, on
+the recommendation of the Nomination and
+Remuneration Committee, issue to certain class
+of personnel a share and share price related
+incentive program.
+Variable compensation: The personnel of the
+Company may be paid remuneration by way of
+variable salaries based on their performance
+evaluation. Such variable salaries should be based
+on the performance of the individual against his
+short and long term performance objectives and
+the performance of the Company.
+Fixed compensation: The fixed salaries of the
+Company's personnel shall be competitive
+and based on the individual personnel's
+responsibilities and performance.
+c)
+b)
+a)
+Components of Remuneration: The following will be
+the various remuneration components which may be
+paid to the personnel of the Company based on the
+designation and class of the personnel.
+Guiding Principles for remuneration: The Company
+shall remunerate all its personnel reasonably and
+sufficiently as per industry benchmarks and standards.
+The remuneration shall be commensurate to retain and
+motivate the human resources of the Company. The
+compensation package will, inter alia, take into account
+the experience of the personnel, the knowledge & skill
+required including complexity of his job, work duration
+and risks associated with the work, and attitude of the
+employee like positive outlook, team work, loyalty etc.
+B.
+RELATED PARTY TRANSACTIONS
+18,205.3
+22.5
+90,481.4
+Country
+Number of API Facility
+India
+Australia
+Israel
+US
+2
+1
+1
+1
+14
+Hungary
+Total
+People: Diverse Cultures. One Purpose.
+Sun Pharma's global workforce includes more than 38,000
+people from over 50 nationalities, who work together
+across cultures and geographies. The Company provides
+a conducive work environment with equal opportunities
+for growth, recognising and appreciating its employees'
+achievements. Sun Pharma encourages its employees to
+learn and share their knowledge and invests in learning and
+development initiatives to make them future-ready.
+Quality Management System
+Sun Pharma has a strong quality control system in place
+that allows it to adhere to the highest quality standards
+in its research centres, manufacturing facilities, testing
+labs, and distribution centres. The Quality Management
+Team oversees the regulatory compliance of every product
+and manufacturing plant. The company's manufacturing
+facilities have Current Good Manufacturing Practice
+(cGMP) certifications from several international regulatory
+bodies, including the USFDA, EMA, WHO, and TGA. The
+Company's Corporate Quality Unit oversees the execution
+of the latest GMP upgrades and guidelines.
+An independent and empowered Global Internal Audit
+Function (GIA) at the corporate level with support from
+a Big 4/equally reputed audit firm, wherever required,
+carries out risk-based audits. GIA audits all businesses to
+ensure that business process controls are adequate and
+are functioning effectively. These reviews include financial,
+operational and compliance controls and risk mitigation
+plans. The Company's operating management closely
+monitors the internal control environment and ensures that
+the audit recommendations are effectively implemented.
+The Audit Committee of the Board monitors performance
+of the Internal Audit Function, periodically reviews key
+findings and provides strategic guidance.
+The December 2019 USFDA inspection of Halol facility was
+classified as Official Action Indicated (OAI). The Company
+was in continuous communication with the USFDA to
+resolve the outstanding issues and was awaiting a re-
+inspection by USFDA to resolve the OAI status. However,
+due to the COVID-19 pandemic and travel restrictions,
+the re-inspection was delayed. In April-May 2022, the
+USFDA inspected the Halol facility and issued Form-483
+with 10 observations. The Company will be submitting a
+comprehensive response, including the corrective actions to
+be undertaken for addressing the observations, within the
+stipulated time to the USFDA.
+Road Ahead
+• Ensure 24x7 compliance to cGMP
+• Continuously enhance systems, processes and
+human capabilities to ensure compliance with global
+regulatory standards
+30
+API Manufacturing Units
+Corporate Overview
+Table 14
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+3
+Japan
+1
+Canada
+1
+1
+1
+1
+South Africa
+Malaysia
+1
+1
+Romania
+1
+Egypt
+1
+GIA's functioning is governed by the Audit Charter,
+duly approved by the Audit Committee of the Board,
+which stipulates matters contributing to the proper and
+effective conduct of the audit.
+Nigeria
+1
+Russia
+1
+Total
+29
+29
+9
+Statutory Reports
+Financial Statements
+Management Discussion and Analysis
+The Company has a well-established internal financial
+controls framework, which is designed to continuously
+assess the adequacy, effectiveness and efficiency of
+internal financial controls. The management is committed
+to ensuring an effective internal financial controls
+environment, commensurate with the size and complexity
+of the business, which provides an assurance regarding
+the reliability of financial reporting and the preparation of
+financial statements for external purposes in accordance
+with generally accepted accounting principles.
+Developing a specialty pipeline
+entails high upfront investments
+for long-term benefits, and may
+impact short-term profitability
+• Given the additional spending
+on battling the pandemic,
+governments across the world
+may try to control pricing
+of certain products, which
+may lead to government-
+mandated price controls on
+pharmaceutical products
+• Significant volatility in the
+forex market, especially for
+emerging market currencies,
+may adversely impact reported
+growth of these markets, even
+though they may be recording
+growth in local currency terms
+Challenging US generics
+pricing environment, driven by
+customer consolidation and
+higher competitive intensity
+on account of the faster pace
+of generic drug approvals by
+the USFDA
+pharmaceutical consumption
+and could indirectly impact
+growth across countries
+activities may impact economic
+disruption in economic
+the world and subsequent
+of the pandemic across
+Potential fresh outbreaks
+•
+•
+• The current geopolitical issues
+give rise to uncertainties related
+to supply chains, inflation and
+overall economic growth
+Threats and Weaknesses
+Internal Financial Controls
+The Company believes that internal controls are the
+prerequisite of governance and that action emanating
+out of agreed business plans should be exercised within
+a framework of checks and balances. The Company has
+a well-established internal controls framework, which is
+designed to continuously assess the adequacy, effectiveness
+and efficiency of internal controls. The management
+is committed to ensuring an effective internal controls
+environment, commensurate with the size and complexity
+of the business, which provides an assurance on compliance
+with internal policies, applicable laws, regulations, ensures
+accuracy of records, promotes operational efficiency,
+protects resources and assets and overall minimize the risks.
+Growing penetration of generics in Japan and
+opening of the China market present good long-
+term opportunities for Indian companies, including
+Sun Pharma
+•
+Sun Pharma's product portfolio includes a number
+of products used in the treatment of COVID-19. The
+pandemic has also shown the need for therapeutic
+medicines for treating COVID-19 symptoms,
+extending an opportunity for pharmaceutical
+companies to service the urgent and vital needs of
+patients. However, the demand for these products
+keeps fluctuating, depending on the number of
+COVID-19 cases
+Developed markets have witnessed a consistent
+increase in contribution of specialty products in their
+overall pharmaceutical spending and this trend is
+expected to continue in the future. Sun Pharma has
+already commercialised many of its specialty products
+in developed markets, and hence will be able to reap
+the benefits of this expanding opportunity
+Favourable macro-economic parameters for India
+and emerging markets are likely to ensure reasonable
+volume growth for pharmaceutical products across
+these markets in the long term. Sun Pharma is
+well-positioned to capitalise on these opportunities
+Scaling up Specialty. Leading with Care.
+31
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Global Internal Audit (GIA)
+SWOT Analysis 1,5,6,7,8
+Strengths
+• Strong global prominence
+4th largest global specialty
+generics company
+•
+-
+-
+-
+8th largest generics Company in
+the US
+2nd largest by prescriptions in
+the US dermatology segment
+Largest pharma company in
+India by market share
+US
+No. 1 ranking across 11 different
+classes of doctors in India
+Among the largest Indian
+pharmaceutical companies in
+the emerging markets
+Largest Indian pharmaceutical
+company in Japan
+Robust R&D infrastructure
+and capabilities to develop
+technologically complex products
+in the generics, branded generics,
+API and specialty segments
+• Focus on driving growth
+and profitability through a
+pragmatic mix of organic and
+inorganic initiatives
+• Strong balance sheet imparts ability
+to undertake inorganic initiatives
+without any significant leverage,
+allowing future growth headroom
+• Ability to supply high-quality
+products at affordable prices across
+the world
+Internal Control
+Opportunities
+71,055.1
+•
+15
+Number of Finished Dosage Facilities
+10. CEGEDIM
+Nielsen MAT Dec 2021 data
+9.
+IQVIA data for 12 months ended April 2022
+8.
+Statements in this 'Management Discussion and Analysis'
+describing the Company's and/or its consolidated
+subsidiaries' objectives, projections, estimates,
+expectations, plans or industry conditions or events
+are 'forward-looking statements' within the meaning of
+applicable securities laws and regulations. Actual results,
+performance or achievements could differ materially
+from those expressed or implied. Important factors that
+could make a difference to the Company's and/or its
+consolidated subsidiaries' operations include global and
+Indian demand-supply conditions, finished goods prices,
+feedstock availability and prices, competitors' pricing
+in the Company's and/or its consolidated subsidiaries'
+principal markets, changes in government regulations,
+tax regimes, economic conditions within India and the
+countries within which the Company and/or its consolidated
+subsidiaries conduct business and other factors, such
+as litigation and labour unrest or other difficulties. The
+Company and/or its consolidated subsidiaries assume
+no responsibility to publicly update, amend, modify or
+revise any forward-looking statements, based on any
+subsequent development, new information or future
+events or otherwise except as required by applicable
+law. Unless the context otherwise requires, references
+in this document to 'the Company', 'we', 'us' or 'our'
+refers to Sun Pharmaceutical Industries Limited and
+consolidated subsidiaries.
+Disclaimer
+Dec 2021
+Evaluate Pharma Estimates for 12 months ended
+SMSRC Data
+AIOCD-AWACS Data
+Nicholas Hall Data 2021
+India Brand Equity Foundation
+Research and Markets
+7.
+6.
+5.
+4.
+3.
+2.
+IQVIA Institute
+1.
+Chart 12 R&D Investments
+11. Euromonitor
+19.8
+32
+BOARD'S REPORT
+9,451.3
+21,273.9
+334,981.4
+386,544.9
+141,160.5
+155,859.8
+Year ended
+March 31, 2021
+Year ended
+March 31, 2022
+*Year ended
+March 31, 2021
+Year ended
+March 31, 2022
+Consolidated
+Standalone
+(in Million)
+Opening balance in Retained Earnings
+Profit/(Loss) after tax
+Profit before tax but after exceptional item
+Exceptional Item
+Profit before exceptional item and tax
+Revenue from operations
+FINANCIAL RESULTS
+Your Directors take pleasure in presenting the Thirtieth Annual Report and Company's Audited Financial Statements for
+the financial year ended March 31, 2022 ('FY2021-22').
+Statutory Reports
+Financial Statements
+Management Discussion and Analysis | Board's Report
+Corporate Overview
+32
+8.6%
+6.9%
+6.1%
+● R&D Investments (% of sales)
+FY22 Highlights
+• Overall R&D investments for the year was 22,194
+million (5.8% of sales). Ramp-up in certain clinical trials
+for specialty products was delayed in FY21 and FY22
+on account of the global COVID-19 pandemic, leading
+to lower R&D spend in these years. As global markets
+return to normalcy, R&D investments are expected to
+increase in FY23.
+• Developed and filed ~200 formulation dossiers globally
+• Specialty R&D Pipeline
+-
+Ilumya (Tildrakizumab) is undergoing Phase 3 clinical
+trials for psoriatic arthritis indication
+Phase 2 trials are ongoing for SCD044, a S1P1 agonist
+for plaque psoriasis and atopic dermatitis and for MM-
+II, a potential treatment for knee pain in patients with
+symptomatic knee osteoarthritis
+Phase 1 trial is ongoing for GL0034, a GLP-1R
+(Glucagon-Like Peptide-1 Receptor) agonist for
+treating diabetes
+**Excludes Expired/Abandoned Patents
+(All data as of March 31, 2022)
+Sun Pharma's manufacturing facilities are certified by
+global regulatory agencies such as the USFDA, European
+Medicines Evaluation Agency (EMEA); UK Medicines
+and Healthcare Products Regulatory Agency (MHRA);
+Australia's Therapeutic Goods Administration (TGA); South
+Africa's Medicines Control Council (MCC); Germany's
+Federal Institute for Drugs and Medical Devices (BfArM);
+Brazilian Health Regulatory Agency (ANVISA); the World
+Health Organization (WHO), South Korea's Ministry
+of Food and Drug Safety, Japan's Pharmaceuticals and
+Medical Devices Agency and many other international
+regulatory agencies.
+29
+Finished dosage
+manufacturing facilities
+14
+API facilities
+• Focus on developing complex products.
+• Invest to further build the specialty pipeline.
+Global Manufacturing Base: World-Class Manufacturing
+Infrastructure
+Sun Pharma has 43 state-of-the-art manufacturing facilities
+spread across India, the Americas, Asia, Africa, Australia,
+and Europe, allowing it to produce high-quality, affordable
+products. The Company has capabilities to produce diverse
+dosage forms, including hormones, peptides, controlled
+substances, orals, creams, ointments, injectables, sprays
+and liquids.
+Hungary
+Israel
+Bangladesh
+Scaling up Specialty. Leading with Care.
+Table 13 Finishing Dosage Manufacturing Units
+Country
+R&D Investments (* Billion)
+2,154
+1,420
+Approved
+6.5%
+5.8%
+19.7
+21.5
+22.2
+605
+Corporate Overview
+Statutory Reports
+(in Billion)
+Chart 13 Filings and Approvals
+512
+India
+ANDA
+67
+54
+NDA/BLA
+490
+Approved
+377
+DMF/CEP
+Financial Statements
+Management Discussion and Analysis
+(Nos.)
+Patents**
+Bibliography
+• The pandemic has resulted in increased healthcare
+awareness globally. This augurs well for companies
+like Sun Pharma, which can supply high-quality
+pharmaceutical products at affordable prices
+• Factories Act, 1948.
+Scaling up Specialty. Leading with Care.
+(Netherlands)
+BV
+(Wholly-
+Owned
+Subsidiary)
+and Expense
+The related party
+transactions entered during
+the year were in ordinary
+course of business and
+on an arm's length basis.
+The aggregate amount of
+transactions for the FY22
+was 38,508.6 Million
+The related party
+transactions entered during
+the year were in ordinary
+course of business and
+on an arm's length basis.
+The aggregate amount of
+transactions for the FY22
+was 54,227.0 Million
+The related party
+transactions entered during
+the year were in ordinary
+course of business and
+on an arm's length basis.
+The aggregate amount of
+transactions for the FY22
+was 42,604.5 Million
+Since these
+transactions were in
+the ordinary course
+of business and
+were on arm's length
+basis, approval of
+the Board was not
+applicable
+Since these
+transactions were in
+the ordinary course
+of business and
+were on arm's length
+basis, approval of
+the Board was not
+applicable
+Since these
+transactions were in
+the ordinary course
+of business and
+were on arm's length
+basis, approval of
+the Board was not
+applicable
+Nil
+Nil
+Nil
+Place: Mumbai
+Date: May 30, 2022
+Scaling up Specialty. Leading with Care.
+Loan Repaid Interest Income
+Dilip Shanghvi
+Managing Director
+(DIN: 00005588)
+Sailesh T. Desai
+Whole-time Director
+(DIN: 00005443)
+41
+44
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+ANNEXURE - C1
+FORM NO. MR-3
+SECRETARIAL AUDIT REPORT
+FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2022.
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of SEBI (Listing Obligations and
+Disclosure Requirements) Regulations, 2015]
+To,
+The Members,
+Sun Pharmaceutical Industries Limited,
+For and on behalf of the Board of Directors
+Vadodara, Gujarat.
+Sale of Investment Loans given
+and assigned
+On-going
+The related party
+transactions entered during
+the year were in ordinary
+course of business and
+on an arm's length basis.
+The aggregate amount of
+transactions for the FY22
+was 178,027.6
+Million
+Date(s) of approval
+by the Board, if any:
+Since these
+transactions were in
+the ordinary course
+of business and
+were on arm's length
+basis, approval of
+the Board was not
+applicable
+Amount paid
+as advances,
+as on March
+31, 2022 if
+any:
+Nil
+2.
+Sun Pharma
+Revenue From Contracts With
+On-going
+Distributors
+Customers, Net of Returns
+Limited
+Reimbursement of Expenses -
+(Wholly-
+Further Investment
+Received Lease Rent Received
+Subsidiary)
+Sun
+Revenue From Contracts With
+Industries INC
+Pharmaceutical Customers, Net Of Returns
+(Wholly-
+Reimbursement of Expenses - Paid
+and Received Rendering Of Service -
+Income Interest Income
+Owned
+Subsidiary)
+Sale of Investment
+On-going
+4.
+Sun Pharma
+Reimbursement of Expenses - Paid
+Owned
+43
+We have conducted the Secretarial Audit of the
+compliances of applicable statutory provisions and the
+adherence to good corporate governance practice by
+Sun Pharmaceutical Industries Limited ("the Company").
+Secretarial Audit was conducted in a manner that provided
+us a reasonable basis for evaluating the corporate
+conducts / statutory compliances and expressing our
+opinion thereon.
+V.
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993, regarding the Companies
+Act and dealing with client - Not applicable to
+the Company;
+The Securities and Exchange Board of India (Issue
+and Listing of Debt Securities) Regulations, 2008
+-
+- Not applicable to the Company for the year
+under review.
+We have also examined compliance with the applicable
+clauses of the:
+a.
+b.
+Secretarial Standards with respect to meeting of
+Board of Directors (SS-1) and General Meetings
+(SS-2) issued by the Institute of Company
+Secretaries of India under the provisions of
+Companies Act, 2013;
+SEBI circular No. SEBI/HO/DDHS/DDHS/
+CIR/P/2019/115 dated 22nd October 2019 read
+with SEBI circular No. SEBI/HO/DDHS/DDHS/
+CIR/P/2019/167 dated 24th December 2019
+("SEBI CP Circulars") in respect of framework for
+listing of Commercial papers.
+The Company has complied with the provisions
+of the Act, Rules, Regulations, Guidelines etc.
+mentioned above.
+We further report that:
+1.
+2.
+The Board of Directors of the Company is duly
+constituted with proper balance of Executive
+Directors, Non-Executive Directors, Independent
+Directors and Woman Directors.
+Not applicable to the Company for the year
+under review;
+Adequate notice of at least seven days was
+given to all directors to schedule the Board
+Meetings and Meetings of Committees except
+in three instances where the meeting was held
+on a shorter notice. Agenda and detailed notes
+on agenda were sent in advance in adequate
+time before the meetings and a system exists
+for Directors for seeking and obtaining further
+information and clarifications on the agenda
+items before the meeting and for meaningful
+participation at the meeting.
+On verification of minutes, we have not found any
+dissent disagreement on any of the agenda items
+discussed in the Board and Committee meetings
+from any of the Directors and all the decisions are
+carried through.
+Based on the information received and records
+maintained, we further report that there are adequate
+systems and processes in the Company commensurate
+with the size and operations of the Company to
+monitor and ensure compliance with applicable laws,
+rules, regulations and guidelines.
+We further report that, having regard to the
+compliance system prevailing in the Company and on
+examination of the relevant documents and records in
+pursuance thereof, on the basis of the representations
+made by the respective plant heads, the Company
+has identified and complied with the following laws
+applicable to the Company:
+• Drugs and Cosmetics Act, 1940 and rules
+made thereunder;
+For KJB & CO LLP,
+Practicing Company Secretaries
+Firm Unique Identification No. - L2020MH006600
+Peer Review Certificate No. - 934/2020
+Alpeshkumar Panchal
+Partner
+ACS No.: 49008
+CP No.: 20120
+UDIN: A049008D000430334
+Date: May 30, 2022
+Place: Vadodara
+This report is to be read with our letter of even date which
+is annexed as Annexure 1 and forms an integral part of
+this report.
+3.
+iv.
+-
+h.
+Foreign Exchange Management Act, 1999 and the
+rules and regulations made thereunder to the extent
+of Foreign Direct Investment, Overseas Direct
+Investment and External Commercial Borrowings;
+The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India
+("SEBI") Act, 1992:
+Based on our verification of the Company's books, papers,
+minutes books, forms and returns filed and other records
+maintained by the Company and also the information
+provided by the Company, its officers, agents and
+a.
+authorized representatives during the conduct of secretarial
+audit, we hereby report that in our opinion, the Company
+has, during the audit period covering the financial year
+ended on 31st March 2022, complied with the statutory
+provisions listed hereunder and also that the Company has
+proper Board-processes and compliance mechanism in place
+to the extent, in the manner and subject to the reporting
+made hereinafter:
+We have examined the books, papers, minutes books,
+forms and returns filed and other records maintained by the
+Company for the financial year ended on 31st March 2022,
+according to the provisions of:
+The Companies Act, 2013 ("the Act") and the rules
+made thereunder;
+ii.
+The Securities Contracts (Regulation) Act, 1956
+("SCRA") and the rules made thereunder;
+iii.
+The Depositories Act, 1996 and the Regulations and
+Bye-laws framed thereunder;
+b.
+C.
+d.
+i.
+e.
+The Securities and Exchange Board of India
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015;
+The Securities and Exchange Board of India
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011;
+The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015;
+The Securities and Exchange Board of India
+(Buy-back of Securities) Regulations, 2018 -
+Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India (Share
+Based Employee Benefits) Regulations, 2014
+- Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2018 - Not applicable to the
+Company for the year under review;
+42
+42
+Corporate Overview
+Statutory Reports
+Financial Statements
+Board's Report
+g. The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2009
+f.
+3.
+The Securities and Exchange Board of India
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+ANNEXURE A
+Corporate Overview
+Statutory Reports
+Financial Statements
+Board's Report
+To,
+The Members,
+Sun Pharma Laboratories Limited,
+Mumbai.
+1.
+Our report of even date is to be read along with this letter.
+Maintenance of secretarial records is the responsibility
+of the management of the Company. Our responsibility
+is to express an opinion on these secretarial records
+based on our audit.
+2.
+3.
+4.
+We have followed the audit practices and processes as
+were appropriate to obtain reasonable assurance about
+the correctness of the contents of the Secretarial
+records. The verification was done on test basis to
+ensure that correct facts are reflected in secretarial
+records. We believe that the processes and practices
+we followed provide a reasonable basis for our opinion.
+We have not verified the correctness and
+appropriateness of financial records and Books of
+Accounts of the Company.
+Wherever required, we have obtained the Management
+representation about the compliance of laws, rules and
+regulations and happening of events etc.
+46
+This report is to be read with our letter of even date which
+is annexed as Annexure A and forms an integral part of
+this report.
+Place: Vadodara.
+UDIN: A049008D000410413
+Date: May 27, 2022
+1.
+2.
+The Board of Directors of the Company is duly
+constituted with proper balance of Executive
+Directors, Non-Executive Directors, Independent
+Directors and Woman Director to the extent applicable
+during the period under review. The changes in the
+composition of the Board of Directors, if any, that took
+place during the period under review were carried out
+in compliance with the provisions of the Act.
+Adequate notice of at least seven days was given
+to all directors to schedule the Board Meetings and
+Meetings of Committees. Agenda and detailed notes
+on agenda were sent in advance in adequate time
+3.
+before the meetings and a system exists for Directors
+for seeking and obtaining further information and
+clarifications on the agenda items before the meeting
+and for meaningful participation at the meeting.
+On verification of minutes, we have not found any
+dissent/disagreement on any of the agenda items
+discussed in the Board and Committee meetings
+from any of the Directors and all the decisions are
+carried through.
+Based on the information received and records maintained,
+we further report that there are adequate systems and
+processes in the Company commensurate with the size
+and operations of the Company to monitor and ensure
+compliance with applicable laws, rules, regulations
+and guidelines.
+5.
+We further report that, having regard to the compliance
+system prevailing in the Company and on examination
+of the relevant documents and records in pursuance
+thereof, on the basis of the representations made by the
+respective plant heads of R&D centers, the Company has
+identified and complied with the following laws applicable
+to the Company:
+• Factories Act, 1948.
+For KJB & CO LLP,
+Practicing Company Secretaries
+Firm Unique Identification No.- L2020MH006600
+Peer Review Certificate No.- 934/2020
+Alpeshkumar Panchal
+Partner
+ACS No. 49008
+C. P. No. 20120
+• Drugs and Cosmetics Act, 1940;
+6.
+The compliance of the provisions of Corporate and
+other applicable laws, rules, regulations, standards is
+the responsibility of management. Our examination was
+limited to the verification of procedure on test basis.
+The Secretarial Audit report is neither an assurance
+as to the future viability of the Company nor of the
+efficacy or effectiveness with which the management
+has conducted the affairs of the Company.
+We have conducted the secretarial audit of the compliance
+of applicable statutory provisions and the adherence to
+good corporate practices by Sun Pharma Distributors
+Limited ("the company"). Secretarial Audit was conducted in
+a manner that provided us a reasonable basis for evaluating
+the corporate conducts/statutory compliances and
+expressing our opinion thereon.
+Based on our verification of the Company's books, papers,
+minute books, forms and returns filed and other records
+maintained by the company and also the information
+provided by the Company, its officers, agents and
+authorized representatives during the conduct of secretarial
+audit, we hereby report that in our opinion, the company
+has, during the audit period covering the financial year
+ended on March 31, 2022, complied with the statutory
+provisions listed hereunder and also that the Company
+has proper Board-processes and compliance-mechanism
+in place to the extent, in the manner and subject to the
+reporting made hereinafter:
+We have examined the books, papers, minute books, forms
+and returns filed, and other records maintained by the
+Company for the financial year ended on March 31, 2022,
+according to the provisions of:
+(i)
+The Companies Act, 2013 ("the Act") and the rules
+made there under;
+(ii) The Securities Contracts (Regulation) Act, 1956
+("SCRA") and the rules made there under - Not
+applicable to the Company for the year under review;
+(iii) The Depositories Act, 1996 and the Regulations and
+bye-laws framed there under - Not applicable to the
+Company for the year under review;
+(iv) Foreign Exchange Management Act, 1999 and the
+rules and regulations made thereunder to extent
+of Foreign Direct Investment, Overseas Direct
+Investment and External Commercial borrowings - Not
+applicable to the Company for the year under review.
+Mumbai, Maharashtra.
+(v) The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India
+(SEBI)Act, 1992: -
+(b) The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015
+- Not applicable to the Company for the year
+under review;
+(c) The Securities and Exchange Board of India
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011 - Not applicable to the
+Company for the year under review;
+(d) The Securities and Exchange Board of India
+(Buyback of Securities) Regulations, 2018 -
+Not applicable to the Company for the year
+under review;
+(e) The Securities and Exchange Board of India
+(Share Based Employee Benefits) Regulations,
+2014- Not applicable to the Company for the year
+under review;
+(f) The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2018 - Not applicable to the
+Company for the year under review;
+(g) The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2009
+- Not applicable to the Company for the year
+under review;
+48
+(a) The Securities and Exchange Board of India
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015 and amendments made
+thereto from time to time ("LODR Regulations")
+- Not applicable to the Company for the year
+under review;
+We further report that:
+Sun Pharma Distributors Limited,
+To,
+For KJB & CO LLP,
+Practicing Company Secretaries
+Firm Unique Identification No.- L2020MH006600
+Peer Review Certificate No.- 934/2020
+Alpeshkumar Panchal
+Partner
+ACS No. 49008
+-
+C. P. No.20120
+The Members,
+UDIN: A049008D000410413
+Date: May 27, 2022
+47
+Scaling up Specialty. Leading with Care.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+ANNEXURE - C3
+FORM NO. MR-3
+SECRETARIAL AUDIT REPORT
+FOR THE FINANCIAL YEAR ENDED MARCH 31, 2022
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
+Place: Vadodara.
+On-going
+During the year under review, the Company has complied
+with the provisions of the Act, Rules, Regulations,
+Guidelines, Standards etc. mentioned above to the
+extent applicable.
+-
+Partner
+ACS No.: 49008
+CP No.: 20120
+UDIN: A049008D000430334
+Date: May 30, 2022
+Place: Vadodara
+44
+Corporate Overview
+Statutory Reports
+Financial Statements
+Board's Report
+ANNEXURE - C2
+FORM NO. MR-3
+SECRETARIAL AUDIT REPORT
+For the Financial Year Ended 31st March 2022.
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
+To,
+The Members,
+Alpeshkumar Panchal
+Firm Unique Identification No. - L2020MH006600
+Peer Review Certificate No. - 934/2020
+Practicing Company Secretary
+For, KJB & CO LLP,
+ANNEXURE 1
+To,
+The Members,
+Sun Pharmaceutical Industries Limited,
+Vadodara, Gujarat.
+Our report of even date is to be read along with this letter.
+1.
+2.
+Sun Pharma Laboratories Limited,
+3.
+Maintenance of secretarial records is the responsibility
+of the management of the Company. Our responsibility
+is to express an opinion on these secretarial records
+based on our audit.
+We have followed the audit practices and processes as
+were appropriate to obtain reasonable assurance about
+the correctness of the contents of the Secretarial
+records. The verification was done on test basis to
+ensure that correct facts are reflected in secretarial
+records. We believe that the processes and practices
+we followed provide a reasonable basis for our opinion.
+We have not verified the correctness and
+appropriateness of financial records and Books of
+Accounts of the Company.
+Wherever required, we have obtained the
+Management representation about the compliance
+of laws, rules and regulations and happening of
+events etc.
+5.
+6.
+The compliance of the provisions of Corporate and
+other applicable laws, rules, regulations, standards is
+the responsibility of management. Our examination
+was limited to the verification of procedure on
+test basis.
+The Secretarial Audit report is neither an assurance
+as to the future viability of the Company nor of the
+efficacy or effectiveness with which the management
+has conducted the affairs of the Company.
+4.
+Mumbai.
+We have conducted the Secretarial Audit of the
+compliances of applicable statutory provisions and the
+adherence to good corporate governance practice by
+Sun Pharma Laboratories Limited ("the Company").
+The Secretarial Audit was conducted in a manner that
+provided us a reasonable basis for evaluating the corporate
+conducts / statutory compliances and expressing our
+opinion thereon.
+Based on our verification of the Company's books, papers,
+minute books, forms and returns filed and other records
+maintained by the company and also the information
+provided by the Company, its officers, agents and
+authorized representatives during the conduct of secretarial
+audit, we hereby report that in our opinion, the company
+has, during the audit period covering the financial year
+ended on 31st March 2022, complied with the statutory
+provisions listed hereunder and also that the Company
+has proper Board-processes and compliance-mechanism
+in place to the extent, in the manner and subject to the
+reporting made hereinafter:
+Company for the year under review;
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011- Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2018 - Not applicable to the
+Company for the year under review;
+Scaling up Specialty. Leading with Care.
+45
+45
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015 - Not applicable to the
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+g.
+h.
+i.
+The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2009
+Not applicable to the Company for the year
+under review;
+-
+The Securities and Exchange Board of India
+(Buyback of Securities) Regulations, 2018 -
+Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993, regarding the Companies Act
+and dealing with client - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India (Share
+based Employee Benefits) Regulations, 2014
+Not applicable to the Company for the year
+under review;
+f.
+We have also examined compliance with the applicable
+clauses of the Secretarial Standards with respect to meeting
+of Board of Directors (SS-1) and General Meetings (SS-2)
+issued by The Institute of Company Secretaries of India
+under the provisions of Companies Act, 2013.
+The Securities and Exchange Board of India
+-
+We have examined the books, papers, minute books, forms
+and returns filed and other records maintained by the
+Company for the financial year ended on 31st March 2022,
+according to the provisions of:
+i. The Companies Act, 2013 ("the Act") and the rules
+made thereunder;
+iv.
+V.
+Foreign Exchange Management Act, 1999 and the
+rules and regulations made thereunder to the extent
+applicable during the period under review of Overseas
+Direct Investment; External Commercial Borrowings
+(Regulations relating to Foreign Direct Investment not
+attracted to the Company for the year under review);
+The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India Act,
+1992 ("SEBI Act"):
+a. The Securities and Exchange Board of India (Issue
+and Listing of Debt Securities) Regulations, 2008
+b.
+Not applicable to the Company for the year
+under review;
+C.
+ii.
+The Securities Contracts (Regulation) Act, 1956
+('SCRA') and the rules made thereunder; Not
+applicable to the Company for the year under review;
+e.
+iii.
+The Depositories Act, 1996 and the Regulations and
+Bye-laws framed thereunder;
+-
+Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015
+d.
+Salient terms of the
+contracts or arrangements or
+arrangements/ transactions including
+transactions the value, if any
+i.
+Liabilities Other Operative Income/
+Other Income
+Increase/
+(Decrease) in
+Remuneration(a)
+in the FY 2021-22
+(in percentage)
+Directors:
+Mr. Israel Makov
+Mr. Dilip S. Shanghvi
+Mr. Sailesh T. Desai
+Mr. Kalyanasundaram Subramanian
+Mr. Sudhir V. Valia
+Ms. Rekha Sethi (b)
+Mr. Vivek Chaand Sehgal (c)
+Mr. Gautam Doshi
+Dr. Pawan Goenka
+Ms. Rama Bijapurkar
+Key Managerial Personnel:
+Mr. C.S.Muralidharan
+2.5
+5.5 (f)
+115.5
+8.8 (f)
+30.6
+9.7 (f)
+of each Director
+to median
+remuneration
+of employees
+84.5
+2.0
+Non-Executive and Non-Independent Director
+Non-Executive Independent Director
+Whole-time Director
+Non-Executive Chairman
+Managing Director
+Whole-time Director
+Mr. Anoop Deshpande(e)
+Mr. Sunil Ajmera(d)
+50.0
+15.4
+Ratio of
+remuneration(a)
+Key Managerial Personnel
+Duration of
+the contracts/
+Corporate Overview
+Statutory Reports
+Financial Statements
+Board's Report
+Your Company has complied with provisions relating to the
+constitution of Internal Complaints Committee under the
+Sexual Harassment of Women at Workplace (Prevention,
+Prohibition and Redressal) Act, 2013.
+CORPORATE GOVERNANCE REPORT
+Report on Corporate Governance and Certificate of the
+Auditors of the Company regarding compliance of the
+conditions of Corporate Governance as stipulated in Part C
+of Schedule V of the Listing Regulations, are provided in a
+separate section and forms part of this Report.
+SECRETARIAL STANDARDS
+The Company has complied with the applicable Secretarial
+Standards as amended from time to time.
+LOANS, GUARANTEES & INVESTMENTS
+The particulars of loans, guarantees and investments have
+been disclosed in the Financial Statements.
+PUBLIC DEPOSITS
+The Company has not accepted any deposit from the Public
+during the year under review.
+CONSERVATION OF ENERGY, TECHNOLOGY
+ABSORPTION AND FOREIGN EXCHANGE EARNINGS
+AND OUTGO
+The information on conservation of energy, technology
+absorption and foreign exchange earnings and outgo as
+stipulated under Section 134(3)(m) of the Act read with Rule
+8 of the Companies (Accounts) Rules, 2014, is provided as
+'Annexure - E' to this Report.
+SIGNIFICANT AND MATERIAL ORDERS PASSED BY
+THE REGULATORS OR COURTS OR TRIBUNALS
+There are no significant and material orders passed by the
+regulators or courts or tribunals which impact the going
+concern status.
+ANNUAL RETURN
+Name of Director and
+Ratio of the remuneration of each director to the median remuneration of the employees of the Company for the
+FY 2021-22 and the percentage increase in remuneration of each Director, Chief Financial Officer and Company
+Secretary during the FY 2021-22:
+(i)
+Information required under Section 197 of the Act Read with Rule 5(1) of the Companies (Appointment and
+Remuneration of Managerial Personnel) Rules, 2014.
+ANNEXURE - A
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Designation
+39
+For and on behalf of the Board of Directors
+Place: Mumbai
+Date: May 30, 2022
+The Directors also wish to express their gratitude to investors
+for the faith that they continue to repose in the Company.
+Your Directors wish to thank all stakeholders, employees
+and business partners, Company's bankers, medical
+professionals and business associates for their continued
+support and valuable cooperation.
+ACKNOWLEDGEMENTS
+The Annual Return as required under sub-section (3) of
+Section 92 of the Companies Act, 2013 ('the Act') in form
+MGT-7 is made available on the website of the Company
+and can be accessed at https://sunpharma.com/investors-
+annual-reports-presentations.
+Scaling up Specialty. Leading with Care.
+Not Applicable
+Dilip Shanghvi Sailesh T. Desai
+Managing Director Whole-time Director
+(DIN: 00005588) (DIN: 00005443)
+Non-Executive Independent Director
+Non-Executive Independent Director
+Non-Executive Independent Director
+Non-Executive Independent Director
+(v) It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial
+Personnel and other Employees.
+40
+Corporate Overview
+Statutory Reports
+Financial Statements
+Board's Report
+ANNEXURE - B
+AOC-2
+(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 ("the Act") and rule 8(2)
+of the Companies (Accounts) Rules, 2014)
+Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section
+(1) of section 188 of the Companies Act, 2013 including certain arm's length transactions under third proviso thereto
+1.
+Details of contracts or arrangements or transactions not at arm's length basis - NIL
+2.
+Details of material contracts or arrangement or transactions (i.e. exceeding ten percent of the annual consolidated
+turnover as per the last audited financial statements) at arm's length basis.
+Sr.
+No.
+Name(s) of the
+related party
+and nature of
+relationship
+Nature of contracts/ arrangements/
+transactions
+Not Applicable
+Received Payment towards Lease
+Interest expense Lease Rent
+Loans taken Loans Repaid
+and received
+Receiving and Rendering of Services
+Reimbursement of expenses paid
+Average percentage increase made in the salaries of employees other than the managerial personnel in the financial year
+ending March 31, 2022 was approximately 10.5% and the average increase in the managerial personnel remuneration
+was 8.1%.
+Purchase and Sale of Property, Plant
+and Equipment
+Owned
+(Wholly-
+Limited
+Laboratories
+Sun Pharma
+1.
+Subsidiary)
+(iv) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last
+financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof
+and point out if there are any exceptional circumstances for increase in the managerial remuneration:
+Purchase and sale of Goods
+The Board of Directors at its meeting held on May 30, 2022 has approved payment of Commission for financial year 2021-22 of
+* 40 Lacs each to the Independent Directors - Mr. Gautam Doshi, Dr. Pawan Goenka and Ms. Rama Bijapurkar, subject to approval of
+the shareholders at the ensuing 30th Annual General Meeting of the Company.
+Not Applicable
+Not Applicable
+Company Secretary and Compliance Officer
+6.4
+Not Applicable
+Chief Financial Officer
+Company Secretary and Compliance officer
+8.03(g)
+9.96(g)
+204.35(g)
+11.72(g)
+Not Applicable
+(ii) The percentage increase in the median remuneration of employees in the FY 2021-22 (Median -2022/Median 2021): 14%
+(iii) The number of permanent employees on the rolls of the Company as on March 31, 2022: 19,021
+Not Applicable
+NA
+Not Applicable
+NA
+Remuneration to Independent Directors consists of sitting fees and commission. Remuneration of Non-Executive Director consists
+only of sitting fees.
+The remuneration paid/payable includes notional value of car perquisites, hence the percentage of increase for Mr. Dilip Shanghvi,
+Mr. Sailesh T. Desai and Mr. Kalyanasundaram Subramanian comes to 9.7%, 8.8% and 5.5%, the actual percentage increase in
+remuneration for Mr. Dilip Shanghvi and Mr. Sailesh T. Desai for FY 2021-22 is 9.15% and for Mr. Kalyanasundaram Subramanian is
+6.0%.
+Mr. Anoop Deshpande has been appointed as the Company Secretary and Compliance Officer w.e.f close of business hours on January
+31, 2022.
+Not Applicable
+Mr. Vivek Chaand Sehgal resigned as the Independent Director with effect from September 1, 2021.
+(g)
+(f)
+Mr. Sunil Ajmera has resigned from the position of the Company Secretary w.e.f close of business hours on January 31, 2022.
+(d)
+(e)
+(c)
+(b)
+(a)
+Notes:
+Ms. Rekha Sethi retired and ceased to be the Independent Director w.e.f. August 31, 2021 i.e. upon conclusion of the 29th Annual
+General Meeting.
+Himachal
+No
+Pradesh
+Vadodara
+Panoli, Paonta,
+21.
+Provision of Covid-19 Disaster
+Halol and
+Pan India
+Awareness
+19.81
+Yes
+Relief Material &
+Response
+22.
+Healthcare
+Maharashtra,
+Yes
+Healthcare
+Pan India
+Yes
+Development Projects Development
+Ahmednagar,
+Yes
+Goa,
+Gujarat,
+Halol, Panoli,
+0.86
+Yes
+1
+Maharashtra,
+Ahmednagar,
+0.76
+Tamil Nadu,
+UT of Dadra &
+Nagar Haveli
+Ankleshwar,
+Dahej and
+Silvassa
+20.
+Tree Plantation
+Environment
+Yes
+Gujarat,
+Madurantakam,
+Goa,
+Maduranthakam,
+Yes
+Gujarat, Tamil
+Development Project
+Nadu, UT of
+Halol, Panoli,
+Vadodara,
+4.12
+Yes
+Dadra and Nagar
+Haveli
+Malanpur,
+54
+Total
+Ahmednagar and
+Karkhadi
+190.63
+Corporate Overview
+Statutory Reports
+Financial Statements
+Board's Report
+(d) Amount spent in Administrative Overheads - 7.97 Million
+Rural
+Yes
+Education
+and Silvassa
+& Nagar Haveli,
+Madhya Pradesh
+Infrastructure Support
+Maharashtra,
+Ahmednagar,
+& Awareness
+Gujarat, Madhya
+Halol, Baroda,
+Pradesh, Punjab, Dewas,
+Tamil Nadu
+Toansa and
+0.69
+Madurantakam
+Infrastructural
+Education
+Yes
+Gujarat, Dadra
+Vadodara, Dewas
+2.44
+Yes
+Development
+24. School Infrastructure
+23. Anganwadi
+Rural Infrastructure
+activities in
+Development
+(Yes/
+for the
+schedule VII to
+the Act
+No)
+State
+District
+project
+(in
+implemen-
+-tation
+- Direct
+(Yes/No)
+Mode of implementation -
+Through implementing agency
+Name
+CSR
+Million)
+registration
+number
+13.
+Provision of Medicine Disaster
+Yes
+Response
+14.
+Community Drinking
+(e) Amount spent on Impact Assessment, if applicable - Not Applicable
+spent
+area
+the list of
+Trust
+Scaling up Specialty. Leading with Care.
+53
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+(1)
+(2)
+(3)
+(4)
+(5)
+Water
+(6)
+(8)
+SI.
+Name of the Project
+Item from
+Local
+Location of the project
+Amount
+Mode of
+No.
+(7)
+19.
+Dadra and Nagar Dadra and Nagar
+Haveli
+Yes Gujarat
+No
+Yes
+Toansa and
+Panoli
+17.
+Water Conservation
+Water
+Yes Gujarat
+Halol
+0.31
+Yes
+18.
+Installation of Solar
+Rural
+Yes
+Maharashtra
+Ahmednagar
+0.20
+Yes
+Street Lights
+0.36
+Madurantakam,
+Gujarat, Punjab,
+Tamil Nadu
+Yes
+Rogi Kalyan
+CSR00004127
+Haveli
+Samiti
+Bharuch
+0.65
+No
+Gram Vikas
+CSR00000175
+0.16
+Water Project
+15.
+Solar Rooftop System Environment Yes
+Gujarat
+Halol
+0.24
+Yes
+16.
+Drinking Water
+Water
+Trust
+(f)
+(7)
+SI.
+Panchmahal,
+Provision of Covid-19 Relief Material & Awareness
+Provision of Oxygen Plant during Covid-19
+Institute,
+Wadala,
+Mumbai
+Gujarat
+(Status:
+Work in
+Progress)
+Not
+18-Jun-2021
+creation or ascertainable
+23-Nov-
+2021
+29-Nov- 10-Jan-
+2021
+5-July-2021
+25-Mar-2022 07-Jan-2022 03-Sep-2021
+07-Mar-2022 29-Mar-2022 29-Mar-2022 03-Jun-2021 03-Jun-2021 03-Jun-
+03-Jun-2021 03-Jun-2021
+Halol
+Tarkhanda, Dist-
+Gujarat
+**E
+Infrastructural Setting-up of Digital Classroom
+Development Project
+for Pharma
+Research
+Laboratory
+Setting-up Setting-up Setting-up
+of Digital of Digital of Digital
+Classroom Classroom Classroom
+Project,
+Halol
+Project, Project,
+Karkhadi
+Ankleswar
+2022
+Mobile
+Smart
+Healthcare Unit Infrastructure Classroom
+Community Drinking
+Water Project
+Development Project
+Project
+Overhead Water Mini Water
+Tank, Village
+Solar Rooftop System
+Solar
+Works, Village Rooftop
+Solar Rooftop
+System,
+Jambughoda,,
+-Sanjali, Dist.- -Bhadi, Dist.- System,
+Bharuch, Gujarat Bharuch,
+School
+Sanatorium
+17-Dec-2021
+16-Mar-2022
+(a) Date of
+of capital
+Paonta -0.029
+Karkhadi 1.931)
+acquisition
+of the
+capital
+asset (in
+Million)
+Shantilal
+Shanghvi
+(c) Details of
+the entity
+or public Foundation
+authority or
+beneficiary
+under
+whose
+name such
+capital
+asset is
+registered,
+their
+address
+Agriculture Govt.
+Development Primary
+Trust, Baramati, School,
+Dist.-Pune, Intwadi,
+Maharashtra
+acquisition
+-0.011
+(BreakupPanoli
+spent for
+creation or
+asset(s) *
+(b) Amount
+of CSR
+100.00
+25.00
+0.33
+0.33
+0.33
+1.97
+2021
+0.31
+0.26
+0.39
+0.12
+0.12
+1.90
+1.81
+2.33
+2.03
+2.30
+0.45
+of Cancer
+setting-up
+towards
+Amount transferred to any fund specified under
+Schedule VII as per section 135(6), if any
+Financial Year
+(In Million)
+Name of the
+Amount
+Fund
+(in )
+Date of
+transfer
+Amount remaining
+to be spent
+in succeeding
+financial years
+(in )
+1.
+2018-19
+2.
+2019-20
+3.
+2020-21
+TOTAL
+N.A.
+39.362
+in the reporting
+to Unspent CSR
+Account under
+section 135 (6)
+Amount spent
+Preceding
+Financial Year
+Particulars
+No.
+(i)
+Two percent of average net profit of the company as per section 135(5)
+(ii)
+Total amount spent for the Financial Year
+(iii) Excess amount spent for the financial year [(ii)-(i)]
+(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any
+Amount available for set off in succeeding financial years [(iii)-(iv)]
+Amount
+N.A.
+(in Million)
+317.37
+Nil
+Nil
+Nil
+(v)
+9.
+(a) Details of Unspent CSR amount for the preceding three financial years:
+Amount transferred
+SI.
+No.
+317.37
+N.A.
+N.A.
+N.A.
+Financial
+Year in which the
+project was
+Project
+duration
+Total amount
+allocated
+for the roject
+commenced
+(in )
+TOTAL
+NIL
+Amount
+spent on the
+project in
+the reporting
+Name of
+the Project
+Financial Year
+(9)
+Cumulative
+amount spent
+at the end of
+reporting
+Financial Year
+Status of the
+project -
+Completed
+/Ongoing
+Scaling up Specialty. Leading with Care.
+55
+56
+10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year.
+Particulars of
+the Project(s)
+Support
+(8)
+Total amount spent for the Financial Year (8b+8c+8d+8e) - 198.60 Million
+(g) Excess amount for set off, if any
+Project
+ID.
+Sl.
+N.A.
+Nil
+43.708
+N.A.
+N.A.
+N.A.
+N.A.
+269.504
+N.A.
+N.A.
+No.
+N.A.
+352.574
+(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
+(1)
+(2)
+(3)
+(4)
+(5)
+(6)
+Annapurna
+N.A.
+Shri Narayan CSR00002248
+Arogyadham
+0.62
+No
+51
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+5.
+DETAILS OF THE AMOUNT AVAILABLE FOR SET OFF IN PURSUANCE OF SUB-RULE (3) OF RULE 7 OF THE
+COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLICY) RULES, 2014 AND AMOUNT REQUIRED
+FOR SET OFF FOR THE FINANCIAL YEAR, IF ANY
+SI.
+Financial Year
+No.
+1
+2018-19
+2
+2019-20
+3 2020-21
+TOTAL
+Amount available
+for set-off from
+preceding financial
+Amount required
+to be set off for
+the financial year,
+years
+if any
+139.69 Million
+118.77 Million
+Scaling up Specialty. Leading with Care.
+Not Applicable for the projects completed during FY22
+DETAILS OF IMPACT ASSESSMENT OF CSR PROJECTS CARRIED OUT IN PURSUANCE OF SUB-RULE
+(3) OF RULE 8 OF THE COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLICY) RULES, 2014, IF
+APPLICABLE.
+https://sunpharma.com/policies/
+https://sunpharma.com/csr/
+3.
+Number of
+meetings of CSR
+Committee held
+during the year
+3
+Number of meetings
+of CSR Committee
+attended during
+the year
+3
+3
+3
+2
+2
+* 139.69 Million
+1
+WEB-LINK WHERE COMPOSITION OF CSR COMMITTEE, CSR POLICY AND CSR PROJECTS APPROVED BY
+THE BOARD ARE DISCLOSED ON THE WEBSITE OF THE COMPANY.
+The details and the web-links, where such details can be accessed are given hereunder:
+Details
+Composition of CSR committee
+CSR Policy
+CSR projects approved by te Board
+4.
+Web-Links
+https://sunpharma.com/committees-of-the-board/
+1
+* Ceased to be a member with effect from August 31, 2021.
+* 118.77 Million
+7.
+Item from
+the list of
+Local
+area
+Location of
+the project
+Project
+duration
+(Yes/No)
+State District
+Project
+activities
+in Schedule
+VII to the
+Act
+Amount
+allocated
+for the
+project
+(in )
+Amount
+spent
+in the
+current
+financial
+year
+Mode of
+Mode of
+Implementation -
+Amount
+transferred Implementa
+to Unspent tion - Direct
+CSR Account (Yes/No)
+for the
+Name
+of the
+No.
+SI.
+(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
+(a)
+Two percent of average net profit of the company as per section 135(5).
+(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years
+(c)
+Amount required to be set off for the financial year, if any.
+(d)
+Total CSR obligation for the financial year (7a+7b-7c).
+8.
+(a)
+6. AVERAGE NET PROFIT OF THE COMPANY AS PER SECTION 135(5). - ₹15,868.58 Million
+CSR amount spent or unspent for the financial year:
+118.77 Million
+198.60 Million
+Amount Unspent (*)
+Total Amount Spent for the
+Financial Year
+Total Amount transferred to Unspent
+CSR Account as per section 135(6)
+Amount
+Date of transfer
+Name of the Fund
+Amount transferred to any fund specified under Schedule VII
+as per second proviso to section 135(5)
+Amount Date of transfer
+198.60 Million
+(b) Details of CSR amount spent against ongoing projects for the financial year:
+* 317.37 Million
+Nil
+Appointed as member with effect from May 27, 2021.
+#
+Independent Director
+ACS No. 49008
+C. P. No. 20120
+UDIN: A049008D000409489
+Date: May 27, 2022
+Place: Vadodara.
+This report is to be read with our letter of even date which
+is annexed as Annexure 1 and forms an integral part of
+this report.
+Scaling up Specialty. Leading with Care.
+49
+49
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+ANNEXURE 1
+To,
+The Members,
+Sun Pharma Distributors Limited,
+Mumbai, Maharashtra
+Our report of even date is to be read along with this letter.
+1.
+2.
+3.
+4.
+Maintenance of secretarial records is the responsibility
+of the management of the Company. Our responsibility
+is to express an opinion on these secretarial records
+based on our audit.
+Partner
+Alpeshkumar Panchal
+Firm Unique Identification No.-L2020MH006600
+Peer Review Certificate No.-934/2020
+Practicing Company Secretaries
+Corporate Overview
+Statutory Reports
+Financial Statements
+Board's Report
+(h) The Securities and Exchange Board of India (Issue
+and Listing of Debt Securities) Regulations, 2008
+- Not applicable to the Company for the year
+under review;
+(i)
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993 regarding the Companies Act
+and dealing with client - Not applicable to the
+Company for the year under review;
+We have also examined compliance with the applicable
+clauses of the Secretarial Standards with respect to meeting
+of Board of Directors (SS-1) and General Meetings (SS-2)
+issued by The Institute of Company Secretaries of India
+under the provisions of Companies Act, 2013.
+During the period under review the Company has complied
+with the provisions of the Act, Rules, Regulations,
+Guidelines, Standards, etc. mentioned above to the
+extent applicable.
+We further report that:
+We have followed the audit practices and processes as
+were appropriate to obtain reasonable assurance about
+the correctness of the contents of the secretarial
+records. The verification was done on test basis to
+ensure that correct facts are reflected in secretarial
+records. We believe that the processes and practices
+we followed provide a reasonable basis for our opinion.
+a)
+b) Adequate notice of at least seven days was given
+to all directors to schedule the Board Meetings and
+Meetings of Committees. Agenda and detailed notes
+on agenda were sent in advance in adequate time
+before the meetings and a system exists for Directors
+for seeking and obtaining further information and
+clarifications on the agenda items before the meeting
+and for meaningful participation at the meeting.
+c)
+On verification of minutes, we have not found any
+dissent / disagreement on any of the agenda items
+discussed in the Board and Committee meetings
+from any of the Directors and all the decisions are
+carried through.
+Based on the information received and records maintained,
+we further report that there are adequate systems and
+processes in the Company commensurate with the size
+and operations of the Company to monitor and ensure
+compliance with applicable laws, rules, regulations
+and guidelines.
+We further report that, having regard to the compliance
+system prevailing in the Company and on examination
+of the relevant documents and records in pursuance
+thereof, on the basis of the representations made by the
+management, the Company has identified and complied
+with the following law applicable to the Company:
+• Drugs and Cosmetics Act, 1940
+• The Drugs & Magic Remedies (Objectionable
+Advertisements) Act, 1954
+• Drugs Price Control Order, 1995 (DPCO)
+For KJB & CO LLP,
+The Board of Directors of the Company is duly
+constituted with proper balance of Executive
+Directors, Non-Executive Directors and Independent
+Directors. The changes in the composition of the
+Board of Directors that took place during the period
+under review were carried out in compliance with the
+provisions of the Act;
+We have not verified the correctness and
+appropriateness of financial records and Books of
+Accounts of the Company.
+Wherever required, we have obtained the
+Management representation about the compliance
+of laws, rules and regulations and happening of
+events etc.
+5.
+SI.
+Name of Director
+No.
+Designation
+in the CSR
+Committee
+Nature of
+Directorship
+1.
+Mr. Dilip S. Shanghvi
+Chairman
+Managing Director
+COMPOSITION OF CSR COMMITTEE:
+2.
+Member
+Non-executive Non-Independent Director
+3.
+Ms. Rama Bijapurkar#
+Member
+Independent Director
+4.
+Ms. Rekha Sethi*
+Member
+Mr. Sudhir V. Valia
+project as
+The Company's CSR policy encompasses the company's philosophy towards corporate social responsibility and lays
+down the guidelines and mechanism for undertaking socially useful programs for welfare & sustainable development
+of the community at large. The Company, through its CSR activities, strives to create maximum impact by leveraging
+its financial and human resources, networks and expertise. The CSR Policy and programs focus on the areas covered
+under Schedule VII of the Companies Act, 2013.
+2.
+6.
+The compliance of the provisions of corporate and
+other applicable laws, rules, regulations, standards is
+the responsibility of management. Our examination
+was limited to the verification of procedure on
+test basis.
+The Secretarial Audit report is neither an assurance
+as to the future viability of the Company nor of the
+efficacy or effectiveness with which the management
+has conducted the affairs of the Company.
+For KJB & CO LLP,
+Practicing Company Secretaries
+Firm Unique Identification No.-L2020MH006600
+Peer Review Certificate No.-934/2020
+Alpeshkumar Panchal
+Partner
+ACS No. 49008
+BRIEF OUTLINE ON CSR POLICY OF THE COMPANY:
+C. P. No. 20120
+Date: May 27, 2022
+Place: Vadodara.
+50
+Corporate Overview
+Statutory Reports
+Financial Statements
+Board's Report
+ANNEXURE-D
+ANNUAL REPORT ON CORPORATE SOCIAL
+RESPONSIBILITY (CSR) ACTIVITIES FOR THE FY2021-22
+1.
+UDIN: A049008D000409489
+of Baroda
+per Section
+Through
+Implementing
+Agency
+No
+Vadodara
+CSR00001522
+Bharuch
+Education
+Trust
+7.
+Model School
+Education
+Yes Gujarat
+Bharuch
+0.74
+No
+Gram Vikas
+CSR00000175
+Development
+Trust
+8.
+Promotion of
+Govt.
+Panchmahal,
+Yes Gujarat
+School Development Education
+Project
+Panchkula
+2.50
+No
+Sun Pharma
+CSR00003635
+Community
+Healthcare
+Society
+5.
+Education
+Healthcare Awareness Healthcare
+Programme
+Mumbai
+0.60
+No
+The Bandra
+CSR00001516
+Holy Family
+Hospital
+Society
+6.
+Yes Maharashtra
+Haryana
+Yes Delhi
+1.50
+Gram Vikas
+CSR00000175
+Development
+Trust
+11.
+Rural Development
+Project
+Rural
+Yes
+12. Provision of Health
+Equipment
+Development
+Disaster
+Response
+Yes
+Gujarat, Dadra &
+Nagar Haveli,
+Gujarat
+Bharuch, Dadra
+& Nagar Haveli,
+0.95
+No
+United Way
+CSR00002187
+Panchmahal
+0.50
+No
+0.46
+Bharuch
+Yes Gujarat
+No
+Scientific Medical
+Sun Pharma CSR00004251
+Science
+& Pharma Research
+Foundation
+Outcomes for Public
+Health Improvement
+9.
+Setting-up of Digital
+Classroom Project
+Delhi
+Education
+Ankleswar, Halol
+and Karkhadi
+1.00
+No
+Vadodara
+Education
+CSR00001522
+Trust
+10.
+Smart Classroom
+Project
+Rural
+Yes Gujarat
+No
+Disaster
+Response
+Grants for Covid-19
+(8)
+the list of
+area
+activities in
+(Yes/
+spent
+for the
+Mode of implementation -
+implemen- Through implementing agency
+-tation
+schedule VII to
+the Act
+No) State
+District
+project
+(in
+Million)
+- Direct
+(Yes/No)
+Name
+CSR
+registration
+number
+1.
+Support towards
+(7)
+Mode of
+(6)
+Amount
+Location of the project
+Local
+CSR
+Registration
+number
+Name
+52
+52
+NIL
+Corporate Overview
+Statutory Reports
+Financial Statements
+Healthcare
+Board's Report
+Details of CSR amount spent against other than ongoing projects for the financial year:
+(1)
+(2)
+(3)
+(4)
+(5)
+SI.
+No.
+Name of the Project
+Item from
+(c)
+Yes Maharashtra
+Mumbai
+100.00
+Healthcare
+Yes Maharashtra,
+Ahmednagar,
+26.17
+No
+Sun Pharma
+CSR00003635
+Gujarat, Punjab,
+Tamil Nadu
+Halol, Mohali,
+Mobile Healthcare
+Unit
+Community
+Healthcare
+Paonta Sahib,
+Society
+Dewas, Panoli,
+Ankleshwar,
+Karkhadi,
+Malanpur and
+Maduranthakam
+4.
+Toansa,
+135(6)
+3.
+Trust
+No
+Shantilal
+CSR00002593
+setting-up of Cancer
+Shanghvi
+Sanatorium Institute,
+Foundation
+Wadala, Mumbai
+2.
+Laboratory
+Infrastructural
+No
+Pan India
+Development for
+Baramati, Dist.-
+Pune
+25.00
+No
+Agricultural CSR00001043
+Development
+Pharma Research
+Healthcare
+Govt.
+Primary Primary
+School, School,
+Gam Tadav, Jepura
+Toansa, Silvassa,
+Government Govt.
+Gujarat
+Traveller T1
+Gujarat
+Equipment at
+Vadodara,
+Agriculture
+Ambulance-Reg
+Gujarat
+Development
+Trust, Baramati,
+Dist.-Pune,
+Maharashtra
+No-GJ06BT9156
+Sun Pharma
+Community
+Healthcare
+society,Karkhadi,
+Gujarat
+Note: The date when creation of asset is recognised/ acknowledged by the Company based on inputs from the Implementing Agency
+Corporate Overview
+Statutory Reports
+Financial Statements
+Dist.-
+- Bharuch,
+Halol,
+Pradesh
+Tamil Nadu
+Punjab
+Healthcare
+Bharuch,
+Taluka-
+Diagnosis
+Intwadi,
+Gam Tadav, Jepura
+society, Paonta,
+Board's Report
+Gujarat
+Section,
+Provision
+Halol,
+Tithod
+Village,
+Sahib- Himachal
+District
+of LCMS
+Gujarat
+Village,
+Ankleswar,
+Madhya
+Pradesh
+11. REASON(S), IF THE COMPANY HAS FAILED TO SPEND TWO PER CENT OF THE AVERAGE NET PROFIT AS
+PER SECTION 135(5)
+The CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR
+objectives and Policy of the company.
+In FY 2021-22, the company has spent 317.37 million
+towards implementation of CSR projects.
+1) SUPPORT TOWARDS SETTING-UP OF CANCER
+SANATORIUM INSTITUTE AT WADALA, MUMBAI
+The project aims to provide comprehensive cancer
+cure facility for delivering high-quality treatment
+and care for patients, embracing all socio-economic
+backgrounds by setting up a clean and aesthetically
+designed sanatorium for housing of cancer patients
+for chemotherapy and radiation treatment at
+Wadala, Mumbai. The company has contributed
+100.00 Million during FY2021-22 and the project has
+been implemented by Shantilal Shanghvi Foundation.
+2) INFRASTRUCTURAL DEVELOPMENT FOR
+PHARMA RESEARCH LABORATORY
+3)
+The project has been undertaken to set-up laboratory
+at Agriculture Development Institute, Baramati,
+Maharashtra for carrying-out scientific, dairy and
+agricultural research. This developed scientific lab will
+provide a platform for Students and young scientist as
+well as teachers to carry out research on the innovative
+concept in the field of agriculture, healthcare and
+pharma technology, manufacturing and industry
+and other areas of social and national importance.
+The company has contributed 25.00 Million during
+FY2021-22 and the project has been implemented by
+Agriculture Development Trust, Baramati.
+MOBILE HEALTHCARE UNIT
+At present 11 Mobile Healthcare Units (MHUS)
+are operational across the India. These Vans are
+operational at Ahmednagar, Halol, Mohali, Toansa,
+4)
+5)
+6)
+Paonta Sahib, Dewas, Panoli, Ankleshwar, Karkhadi,
+Malanpur and Maduranthakam. Through MHUS
+services we are covering more than 4,12,600
+populations of 11 districts from 5 states and provided
+1.77 lakh treatments last year. All vans are operational
+in peripheral areas of Sun Pharma Plant locations under
+banner of Sun Pharma Community Healthcare Society
+to provide health promotive, preventive and curative
+services with a focus on Reproductive Child Health,
+through team comprising an MBBS doctor & two
+trained ANMs. Services are provided through MHU
+which includes free consultation of MBBS doctor, Basic
+diagnostics, free treatment, free medicine, home visits
+by doctor for bedridden patients those are unable to
+reach to MHU. We also organize awareness camps,
+meetings and group discussions with IEC Materials to
+raise awareness in community on health related issues,
+Hygiene and Sanitation Awareness Programs. The
+Project has provided Curative Treatment to 1,53,873
+patients and Preventive & Promotive Healthcare to
+24,064 people during FY2021-22. The company has
+Contributed 26.17 Million during FY2021-22.
+HEALTHCARE INFRASTRUCTURE
+DEVELOPMENT & AWARENESS
+Healthcare is main focus area of Sun Pharma and
+every year providing support to PHC's & CHC's for
+development of healthcare infrastructure aiming to
+provide better healthcare services to nearby community.
+We organized blood donation camp and health
+awareness activities in nearby community for betterment
+of society. In FY2021-22 company has contributed
+* 1.28 Million for this project and organized activities
+at Goa, Ahmednagar, Halol, Baroda, Dewas, Toansa and
+Madurantakam which has benefitted to community.
+ANGANBARI INFRASTRUCTURAL DEVELOPMENT
+The project has been providing a caring environment
+that addresses the educative, health and nutritive
+requirements of rural children by refurbishing of
+existing centres in child friendly environment including
+learning environment through provision of good
+infrastructure and learning materials in Anganbari
+Centres of Vadodara, Dewas and Silvassa. The company
+has contributed 2.44 Million during the financial year
+2021-22, with benefit being extended to 2182 toddlers.
+SCHOOL INFRASTRUCTURE DEVELOPMENT
+PROJECT
+To enhance the quality of education in schools we have
+upgraded the infrastructural facilities in surrounding
+schools of Halol, Panoli, Maduranthakam, Vadodara,
+Malanpur, Toansa, Silvassa, Ahmednagar and Karkhadi.
+Infrastructure such as construction of classrooms,
+drinking water, sanitation facilities, sports equipment
+facilities and school furniture were taken up. This
+project has benefitted 17,203 Students with an
+investment of 5.82 million.
+58
+Sun Pharma
+Community
+Healthcare
+Society
+Disaster relief & Response to COVID-19 Pandemic.
+F.
+Rural Development
+E.
+Date: May 30, 2022
+Dilip S. Shanghvi
+Chairman - CSR Committee
+and Managing Director
+(DIN -00005588)
+Sudhir V. Valia
+Member - CSR Committee
+and Director
+(DIN: 00005561)
+Scaling up Specialty. Leading with Care.
+Not Applicable
+57
+CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES
+Sun Pharma is committed to making a positive impact on
+communities, environment and other key stakeholders in line
+with Vision statement "Reaching People. Touching Lives."
+Sun Pharma has been serving the society to meet the
+needs of its stakeholders and business operations in the
+most suitable way. Our CSR activities are conducted
+across various sectors that are in line with Schedule VII
+of the Act. Sun Pharma has recognized few key areas like
+education, health, sanitation, drinking water and environment
+sustainability programme for improving the quality of life of
+our communities.
+The focus areas of the Company's CSR activities are listed
+hereunder but not limited to:
+A. Health
+B.
+Education
+C.
+Drinking water & Sanitation
+D.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Chennai,
+Environmental Sustainability
+Oxygen
+Plant of 83
+Lit./Min
+capacity at
+Government
+Hospital of
+Tambaram,
+Jaya
+Arogaya
+Hospital,
+Government Government
+Hospital of Civil Hospital
+Tambaram,
+of SBS Nagar,
+Halol, Gujarat
+District -
+Rajpipla,
+Ahmednagar, Gwalior,
+Panchmahal,
+Gujarat
+Gujarat
+Maharashtra Madhya
+Pradesh
+Chennai,
+Tamil Nadu
+Toansa,
+Punjab
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+etc.
+(d) Provide
+details of
+the capital
+asset(s)
+created or
+acquired
+Construction
+College,
+Hospital,
+Ayurved
+Ayurveda
+Primary School, Primary
+Bakrol
+Oxygen
+Plant of 167
+Lit./Min
+capacity at
+Government
+Civil Hospital
+of SBS Nagar,
+Toansa,
+School,
+Gram Panchayat,
+Sanjali, District
+Bharuch, Gujarat
+Surwadi,
+Halol,
+Gujarat
+Tithod
+Village,
+Taluka-
+of Hospital
+Building,
+Wadala,
+Mumbai,
+Maharashtra
+Village,
+Ankleswar,
+Dist.-
+District
+Vadodara,
+Gujarat
+- Bharuch,
+Gujarat
+Gram
+Panchayat,
+Bhadi, District
+- Bharuch,
+Gujarat
+High School,
+Tarkhanda,
+Shri Narayan The Secondary
+School,
+Jambughoda,
+Government GS Gune
+Halol,
+Construction
+Gujarat
+Interactive
+Panel
+School,
+at Govt.
+Primary
+School, School,
+School,
+Community
+Surwadi,
+Government
+Speaker Set,
+Primary School, PC Cabinet
+Bakrol Village, and Woofer
+Taluka-
+Ankleshwar,
+District-
+Construction
+Water Tank at
+Disease
+Sanjali Village,
+Solar Power
+Plant 3.15
+KW at Shri
+Narayan
+High School,
+Tarkhanda,
+Halol, Gujarat
+The Secondary
+School,
+Jambughoda,
+District -
+Panchmahal,
+Gujarat
+Plant of
+417 Lit./
+Min capacity
+at Jaya
+Arogaya
+Oxygen Oxygen Plant Oxygen
+Plant of 167 of 100 Lit./
+Lit./Min Min capacity
+capacity at
+at GS Gune
+Government Ayurved
+College,
+Ayurveda
+Ahmednagar, Hospital,
+Maharashtra Gwalior,
+Hospital,
+of of R& D
+building and
+labs such as
+Analytical Lab
+Rajpipla,
+Gujarat
+Construction
+of Mini Water
+Works in Gram
+Panchayat,
+Gram Panchayat, Bhadi, Taluka
+Sanjali, Taluka- - Ankleswar,
+Ankleswar,District District -
+- Bharuch, Gujarat Bharuch,
+Gujarat
+at Govt.
+Primary
+Solar Power
+Plant 3.15
+KW at
+Sun Pharma
+Community
+Healthcare
+Board,
+Interactive
+Panel Board, of Over Head
+Projector,
+Computer,
+Classroom
+Benches
+Interactive
+Interactive Almirah
+Panel
+Panel
+Board,
+Board,
+Projector, Projector, Projector,
+(including
+complete
+address and
+location of
+the capital
+asset)
+Quality
+"AAS section",
+Computer, Computer, Computer, society, Panoli,
+Speaker Speaker Speaker
+Gujarat
+Set, PC Set, PC Set, PC
+Cabinet
+Lenovo Tab M8
+at Govt.
+Control Lab
+Section, F & D and Woofer and Woofer and Woofer (ZA6L0002IN)
+Primary
+Sun Pharma
+at Govt.
+Lab Section,
+Cabinet Cabinet
+Primary
+Number of Audit
+Committee
+Name of the Director
+Number of Audit
+Committee
+Meetings
+Meetings
+entitled to attend
+attended
+The Board of Directors has laid down a Global Code
+of Conduct for all Board members, and all employees,
+including the senior management of the Company.
+This Code serves as a guide for our daily business
+interactions reflecting our standard for appropriate
+behavior and our corporate values, and is designed
+to prevent, detect, and address any allegation of
+misconduct and to provide guidance to Personnel in
+recognising and dealing with important ethical and
+legal issues and to foster a culture of honesty and
+accountability within the organisation.
+7
+7
+3
+The attendance of each Member of the Committee is
+given below:
+3
+7
+Mr. Gautam Doshi
+Ms. Rekha Sethi5
+Mr. Sailesh T. Desai
+Dr. Pawan Goenka6
+May 26, 20211; June 25, 2021; July 29, 20212; October
+29, 20213; December 22, 2021; January 29, 20224 and
+March 21, 2022.
+AUDIT COMMITTEE
+5.
+All the Directors and senior management have affirmed
+compliance with the Global Code of Conduct as
+approved and adopted by the Board of Directors and
+a declaration to this effect signed by the Managing
+Director has been annexed as Annexure 'A' to the
+Corporate Governance Report. The Global Code of
+Conduct of the Company is available on the website
+of the Company at www.sunpharma.com. The Global
+Code of Conduct of the Company is applicable to all
+the employees of the Company including its subsidiary
+companies within and outside India, (except any
+publicly held companies and its subsidiaries), and the
+employees are required to affirm compliance with the
+Code on an annual basis.
+7
+64
+Corporate Overview
+Statutory Reports
+Financial Statements
+Seven Audit Committee Meetings were held during the
+year ended March 31, 2022. The dates on which the
+Meetings were held are as follows:
+Corporate Governance
+The Audit Committee of the Company presently
+comprises of three Directors which include two
+Non-executive and Independent Directors viz.
+Mr. Gautam Doshi, Dr. Pawan Goenka and one
+Whole-time Director viz. Mr. Sailesh T. Desai.
+Mr. Gautam Doshi is the Chairman of the Audit
+Committee. Dr. Pawan Goenka has been appointed
+as the member of the Committee with effect from
+May 27, 2021. Ms. Rekha Sethi, Independent Director
+who was a member of the Committee ceased to be
+a Director and member of the committee effective
+from August 31, 2021. The constitution of Audit
+Committee meets with the requirements as laid
+down under Section 177 of the Companies Act,
+2013 and Regulation 18 of the Listing Regulations.
+Mr. Sunil Ajmera ceased to be the Secretary of the
+Audit Committee on him ceasing to be the Company
+Secretary of the Company effective from January
+31, 2022 and Mr. Anoop Deshpande, the Company
+Secretary of the Company is the Secretary of the
+Audit Committee effective from January 31, 2022.
+The terms of reference of the Audit Committee inter alia
+include: overseeing the Company's financial reporting
+process, reviewing with the management, the annual
+financial statements and auditor's report thereon before
+submission to the board for approval, recommendation
+for appointment, remuneration and terms of
+appointment of auditors of the company, reviewing the
+adequacy of internal audit function, discussion with
+internal auditors on any significant findings and follow
+up there on, evaluation of internal financial controls
+and risk management systems, review functioning
+of Whistle Blower/ Vigil Mechanism, approval of
+appointment of Chief Financial Officer, review and
+monitor the auditor's independence and performance,
+effectiveness of audit process, approval of transactions
+with related parties and reviewing the utilisation of
+loans and/or advances from/ investment by the holding
+company in the subsidiary based on the threshold limits
+specified as per the Listing Regulations.
+The Committee acts as a link between the
+management, external and internal auditors and the
+Board of Directors of the Company.
+Executives from the Finance Department,
+representatives of the Statutory Auditors and Internal
+Audit Department are also invited to attend the Audit
+Committee Meetings, whenever necessary.
+The Committee has discussed with the Statutory
+Auditors and the head, Internal Audit about their
+audit methodology, audit planning and significant
+observations/ suggestions made by them.
+In addition, the Committee has discharged such other
+role/functions as envisaged under Regulation 18 of
+the Listing Regulations, 2015 and the provisions of
+Section 177 of the Companies Act, 2013.
+4.
+6
+Name of the Director
+1The Audit Committee meeting held on May 26, 2021 was
+adjourned for consideration of few agenda items and the adjourned
+meeting was held on May 27, 2021, and the adjourned meeting was
+attended by all members.
+7
+CODE OF CONDUCT
+7
+5
+5
+4
+4
+attended
+Meetings
+Committee
+Number of
+Nomination and
+Remuneration
+to attend
+Number of
+Nomination and
+Remuneration
+Committee
+Meetings entitled
+Ms. Rekha Sethi*
+Dr. Pawan Goenka**
+Mr. Israel Makov
+Mr. Gautam Doshi
+The attendance of each Member of the Committee is
+given below:
+May 19, 2021; May 24, 2021; June 25, 2021; July 27,
+2021; October 29, 2021 January 29, 2022; and March
+21, 2022.
+Seven meetings of Nomination and Remuneration
+Committee were held during the year ended March 31,
+2022. The dates on which the meetings were held are
+as follows:
+2The Audit Committee meeting held on July 29, 2021 was adjourned
+for consideration of few agenda items and the adjourned meeting
+was held on July 30, 2021, and the adjourned meeting was attended
+by all members.
+3The Audit Committee meeting held on October 29, 2021 was
+adjourned for consideration of few agenda items and the adjourned
+meeting was held on November 2, 2021, and the adjourned meeting
+was attended by all members.
+4The Audit Committee meeting held on January 29, 2022 was
+adjourned for consideration of few agenda items and the adjourned
+meeting was held on January 31, 2022, and the adjourned meeting
+was attended by all members.
+5Ms. Rekha Sethi retired as a Director and member of the
+Committee effective from August 31, 2021
+'Dr. Pawan Goenka was appointed as the member of the Committee
+effective from May 27, 2021
+NOMINATION AND REMUNERATION
+COMMITTEE
+6
+The Nomination and Remuneration Committee presently
+comprises of three Non-Executive Directors viz.
+Dr. Pawan Goenka, Israel Makov and Mr. Gautam Doshi.
+Dr. Pawan Goenka is the Chairman of the Committee.
+Ms. Rekha Sethi ceased to be a Director and Chairperson
+of the Committee effective from August 31, 2021.
+Dr. Pawan Goenka has been appointed as the member
+of the Committee with effect from May 27, 2021 and
+Chairman with effect from September 1, 2021. The
+constitution of the Nomination and Remuneration
+Committee meets with the requirements of Section 178
+of the Companies Act, 2013 as also the requirements
+laid down in Regulation 19 of the Listing Regulations.
+Mr. Sunil R. Ajmera was the Secretary of the Committee
+upto January 31, 2022 and Mr. Anoop Deshpande, the
+Company Secretary of the Company is the Secretary of
+the Committee effective from January 31, 2022.
+65
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+The terms of reference of the Nomination and
+Remuneration Committee inter alia include; to
+determine the Company's policy on specific
+remuneration packages for executive directors, to
+review, recommend and/ or approve remuneration
+to Whole-time Directors, to review and approve the
+Remuneration Policy of the Company, to formulate
+criteria for evaluation of Independent Directors and
+the Board, to devise a policy on Board Diversity, to
+identify persons who are qualified to become directors
+and who may be appointed in senior management in
+accordance with the criteria laid down and recommend
+to the Board the appointment or removal of such
+persons and carry out evaluation of every directors'
+performance, recommending to the board, all
+remuneration, in whatever form, payable to senior
+management etc.
+The Nomination and Remuneration Committee has
+adopted the criteria as provided in the Guidance Note
+on Board Evaluation by Securities and Exchange Board
+of India vide its notification no. SEBI/HO/ CFD/CMD/
+CIR/P2017/004 dated January 5, 2017 for evaluation
+of the Individual Directors including Independent
+Directors. The said criteria provides certain parameters
+like qualification, experience, knowledge, competency,
+fulfillment of functions, availability and attendance,
+initiative, integrity, contribution, and judgment, etc.
+The Independent Directors are additionally evaluated
+on the basis of independence, independent views and
+judgement etc. Further the evaluation of Chairman
+of the Board, in addition to the above criteria for
+individual Directors, also includes evaluation based
+on effectiveness of leadership and ability to steer the
+meetings, impartiality, etc.
+Scaling up Specialty. Leading with Care.
+3.
+Yes
+Yes
+Yes
+Yes
+Yes
+in one or more fields
+• In the field of:
+Finance & Accounts
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Legal
+Yes
+Yes
+Yes
+Yes
+7
+Interpersonal skills / communication
+Active Participation
+The skills/expertise/competencies of the Directors are as given below:
+Skill set/ Area of
+Expertise
+Israel
+Makov
+Yes
+Dilip
+Shanghvi
+Sudhir Valia
+Gautam
+Doshi
+Pawan
+Rama
+Goenka Bijapurkar
+Knowledge
+Specialisation / Expertise
+Yes
+Name of Director
+Sailesh Kalyanasundaram
+Desai
+Subramanian
+The Independent directors fulfill the conditions specified in the Listing Regulations and are independent of
+the management.
+Yes
+Governance
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+General Management
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+(Pharma Industry)
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Risk Management
+Yes
+Industry Knowledge
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+7
+The attendance of each Member of the Committee is
+given below:
+** Dr. Pawan Goenka was appointed as the member of the
+Committee effective from May 27, 2021 and Chairperson of the
+Committee effective from September 1, 2021.
+Mr. Sudhir V. Valia
+4
+4
+Mr. Gautam Doshi
+attended
+to attend
+Meetings
+Meetings entitled
+Committee
+Relationship
+Committee
+Name of the Director
+Number of
+Stakeholders'
+Relationship
+Number of
+Stakeholders'
+Genuine interest
+May 26, 2021; July 29, 2021; October 29, 2021 and
+January 29, 2022.
+Four meetings of the Stakeholders' Relationship
+Committee were held during the year ended March
+31, 2022. The dates on which Meetings were held are
+as follows:
+8.
+Mr. Sudhir Valia
+Ms. Rama Bijapurkar
+Dr. Pawan Goenka
+Nil
+8,000
+14,345,019
+Nil
+Nil
+4
+STAKEHOLDERS' RELATIONSHIP COMMITTEE
+Mr. Sunil R. Ajmera was the Secretary of the
+Committee upto January 31, 2022 and Mr. Anoop
+Deshpande, the Company Secretary of the Company
+is the Secretary of the Committee effective from
+January 31, 2022.
+The terms of reference of the Committee inter alia
+include the following: Resolving the grievances of the
+security holders of the Company including complaints
+related to transfer/transmission of shares, non-receipt
+of annual report, non-receipt of declared dividends,
+issue of new/duplicate certificates, general meetings;
+Review of measures taken for effective exercise of
+voting rights by shareholders; Review of adherence
+to the service standards adopted by the Company
+in respect of various services being rendered by the
+Registrar & Share Transfer Agent; Review of the
+various measures and initiatives taken by the Company
+for reducing the quantum of unclaimed dividends and
+ensuring timely receipt of dividend warrants/annual
+reports/statutory notices by the shareholders of the
+Company, to investigate any activity within its terms
+of reference, to seek information from share transfer
+agents, to obtain outside legal or other professional
+advice and to secure attendance of outsiders with
+relevant expertise, if it considers necessary and have
+full access to the information contained in the records
+of the Company etc.
+The Board has designated, Mr. Anoop Deshpande,
+Company Secretary as Compliance Officer for the
+purposes of/under rules, regulations etc. issued by the
+Securities Exchange Board of India, Stock Exchanges,
+and Companies Act, 2013.
+Scaling up Specialty. Leading with Care.
+67
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+The Stakeholders' Relationship Committee as on March
+31, 2022 comprised of three Directors viz. Mr. Gautam
+Doshi, Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia.
+Mr. Gautam Doshi is the Chairman of the Committee.
+The constitution of the Stakeholders' Relationship
+Committee meets with the requirements of Section 178
+of the Companies Act, 2013 and also of Regulation 20
+of the Listing Regulations. Further Dr. Pawan Goenka,
+Independent Director has been appointed as the
+member of the Committee effective from May 27, 2022.
+4
+4
+4
+3
+3
+3
+1
+1
+Ms. Rama Bijapurkar**
+3
+2
+Ms. Rekha Sethi ceased to be a Director and member of the
+Committee effective from August 31, 2021
+** Ms. Rama Bijapurkar was appointed as the member of the
+Committee effective from May 27, 2021
+9.
+RISK MANAGEMENT COMMITTEE
+The Risk Management Committee as on March 31,
+2022 comprised of Mr. Dilip S. Shanghvi, Managing
+Director of the Company, Mr. Gautam Doshi,
+Mr. Sudhir V. Valia, Director of the Company and
+Mr. C. S. Muralidharan, Chief Financial Officer of
+the Company. The Chairman of the Committee is
+Mr. Dilip S. Shanghvi. Mr. Gautam Doshi, Independent
+Director, has been appointed as the member of the
+Risk Management Committee with effect from May
+20, 2021. Further Dr. Pawan Goenka, Independent
+Director has been appointed as the member of the
+CSR Committee effective from May 27, 2022. Mr. Sunil
+R. Ajmera was the Secretary of the Committee upto
+January 31, 2022 and Mr. Anoop Deshpande, the
+68
+2
+Mr. Israel Makov
+Mr. Gautam Doshi
+attended
+meetings
+Mr. Dilip S. Shanghvi
+Investor Complaints:
+The total numbers of complaints received and resolved
+to the satisfaction of shareholders, during the year
+under review were 3. There were no complaints
+pending at the beginning or at the end of the year.
+CORPORATE SOCIAL RESPONSIBILITY
+COMMITTEE
+The Corporate Social Responsibility Committee as
+on 31st March, 2022 comprised of three Directors
+viz. Mr. Sudhir V. Valia, Ms. Rama Bijapurkar and
+Mr. Dilip S. Shanghvi. The Chairman of the Committee
+is Mr. Dilip S. Shanghvi. The constitution of the
+Corporate Social Responsibility Committee meets the
+requirements of section 135 of the Companies Act,
+2013. Mr. Sunil R. Ajmera was the Secretary of the
+Committee upto 31st January, 2022 and Mr. Anoop
+Deshpande, the Company Secretary of the Company
+is the Secretary of the Committee effective from
+31st January, 2022. Ms. Rama Bijapurkar has been
+appointed as the member of the Committee with effect
+from May 27, 2021. Ms. Rekha Sethi ceased to be a
+Director and member of the committee effective from
+August 31, 2021.
+Further Dr. Pawan Goenka, Independent Director has
+been appointed as the member of the CSR Committee
+effective from May 27, 2022.
+to attend
+The terms of reference of the CSR Committee
+are: To formulate and recommend to the Board, a
+Corporate Social Responsibility Policy, which shall
+indicate the activities/ projects to be undertaken
+by the Company as specified in Schedule VII of the
+Companies Act 2013; to monitor the Corporate Social
+Responsibility Policy of the company from time to
+time and recommend revision/ amendments thereof,
+wherever required; to recommend the amount of
+expenditure to be incurred in the above referred
+During the year ended March 31, 2022, three meetings
+of Corporate Social Responsibility Committee were
+held on May 26, 2021, November 1, 2021 and
+January 29, 2022. The attendance of each member of
+Committee is as follows:
+Name of the Director
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Ms. Rekha Sethi *
+Number of
+Corporate Social
+Responsibility
+Committee
+meetings entitled
+Number of
+Corporate Social
+Responsibility
+Committee
+activities/projects; to formulate and recommend to
+the Board, an Annual Action Plan in pursuance of the
+Corporate Social Responsibility Policy of the Company
+and the provisions of the Companies Act, 2013, which
+shall include the list of CSR projects or programs, the
+manner of execution of such projects or programs, the
+modalities of utilization of funds and implementation
+schedules for the projects or programs; to monitor
+and review the utilization of the funds on the CSR
+activities/projects, as approved by the Board; to advise
+board on surplus funds generated out of CSR projects
+undertaken, and recommend their utilization on the
+CSR activities/projects of the Company, to monitor/
+review the amount incurred towards administrative
+overheads and to recommend the Board its treatment,
+to review and monitor the applicability of the Impact
+Assessment of the CSR Projects undertaken by
+the Company and if applicable; to review unspent
+amounts, if any, and recommend to Board, the transfer
+of such amounts in accordance with provisions of
+the Companies Act, 2013 etc. The CSR Policy of the
+Company can be accessed through the web link:
+https://www.sunpharma.com/policies.
+Director
+No. of Equity Shares
+held (held singly or
+jointly as first holder)
+The details of Equity Shares held by Non-Executive
+Directors as on March 31, 2022 are as follows:
+7,559,899
+5,151,800
+50,511,195
+Mr. Sudhir V. Valia
+1,500,000
+1,500,000
+37,799,496
+Mr. Sailesh T. Desai
+2,654,220
+2,377,802
+18,303,122
+61,915,691
+4,328,150
+2,756,494
+13,271,100
+69,000,335
+Mr. Dilip S. Shanghvi
+Commission to
+Independent Directors
+6.
+REMUNERATION OF DIRECTORS
+The remuneration of the Managing Director and Whole-time Director(s) is approved by the Board, as per recommendation
+of the Nomination and Remuneration Committee within the overall limit fixed by the shareholders.
+The Non-Executive Directors of the Company are entitled to sitting fees of ₹ 100,000/- for attending each meeting
+of the Board and/or of Committee thereof except the Corporate Governance and Ethics Committee for which they
+are entitled to 50,000/- for each meeting of the Committee. With effect from FY 2021-22, the sitting fees for the
+meetings of Corporate Governance and Ethics Committee has also been increased to 1,00,000/- per meeting.
+The details of Remuneration paid/payable to the Directors of the Company for the year ended March 31, 2022 are
+given below: -
+66
+Total
+For the year ended March 31, 2022
+Directors
+Salary 1
+Perquisites
+Bonus
+/ Benefits²
+Sitting Fees
+(Amount in)
+* Ms. Rekha Sethi retired as a Director and Chairperson of the
+Committee effective from August 31, 2021.
+Subramanian¹
+1,200,000
+Mr. Kalyanasundaram Subramanian also includes
+variable pay of ₹7,773,453/-.
+2 Perquisites include House Rent Allowance, if any, Leave Travel
+Assistance, Medical Reimbursement, contribution to Provident
+Fund and such other perquisites, payable to Directors, as per
+Company Policy.
+3 Ms. Rekha Sethi ceased to be a Director of the Company
+effective from August 31, 2021
+4 Mr. Vivek Chaand Sehgal, ceased to be a Director with effect
+from September 1, 2021.
+5 The Board of Directors at its meeting held on May 30, 2022
+has approved Commission of 4,000,000 (Rupees Forty Lakhs)
+to be paid to each Independent Director of the Company, for
+the FY 2021-22, subject to the approval of the members at the
+ensuing 30th Annual General Meeting and the payment shall be
+made after obtaining approval of the members.
+Besides this, all the Whole-time Directors to whom
+remuneration is paid are also entitled to encashment of
+leave as per Company policy, and gratuity at the end of
+tenure, as per the rules of the Company.
+1 Salary includes Special Allowance. Salary of
+Notes:-
+b)
+d)
+The Agreement with Mr. Sailesh T. Desai,
+Whole-time Director for his present term is for a
+period of 5 years from April 1, 2019 to March 31,
+2024 and remuneration for period of 2 years from
+April 1, 2022 to March 31, 2024. Either party to the
+agreement is entitled to terminate the Agreement by
+giving to the other party 30 days' notice in writing.
+The agreement for appointment of
+Mr. Kalyansundaram Subramanian, Whole-time
+Director, is for a period of 2 years with effect
+February 14, 2021 to February 13, 2023,
+including for payment of remuneration. Either
+party to the agreement is entitled to terminate
+the Agreement by giving to the other party 3
+months' notice in writing.
+There is no separate provision for payment of
+severance fees to Whole-time Director(s).
+7.
+a) The Agreement with Mr. Dilip S. Shanghvi,
+Managing Director for his present term is for a
+period of 5 years from April 1, 2018 to March
+31, 2023 and remuneration for period of two
+years from April 1, 2021 to March 31, 2023.
+Either party to the agreement is entitled to
+terminate the Agreement by giving to the other
+party 30 days' notice in writing. The Nomination
+and Remuneration Committee and the Board
+of Directors have approved the re-appointment
+and maximum limit of remuneration of Mr. Dilip
+S. Shanghvi, Managing Director for a further
+period of five years with effect from April 1, 2023
+to March 31, 2028 subject to approval of the
+members at the 30th AGM.
+Mr. Israel Makov
+Corporate Governance
+Statutory Reports
+1,200,000
+Ms. Rekha Sethi³
+1,100,000
+1,100,000
+Mr. Vivek Chaand Sehgal4
+Mr. Gautam Doshi
+Financial Statements
+Dr. Pawan Goenka
+Ms. Rama Bijapurkar
+200,000
+4,000,0005 7,000,000
+4,000,0005
+4,000,0005
+5,950,000
+4,800,000
+Corporate Overview
+200,000
+3,000,000
+1,950,000
+800,000
+Behavioural Traits
+Integrity
+Mr. Kalyanasundaram
+Analytical Skills
+(e) We are among the few selected companies
+that have set up completely integrated
+manufacturing capability for the production
+of anticancer, hormones, peptide,
+immunosuppressant and steroidal drugs.
+differentiated products which are convenient
+and safe for administration to patients.
+(d) Offers technologically advanced
+Not dependent on imported technology,
+can make high-end products available at
+competitive prices by using indigenously
+developed manufacturing processes and
+formulation technologies.
+(c)
+(b) For FY22, 42 formulations were developed
+and filed from our R&D locations for the
+Indian and regulated markets and 153
+dossiers were submitted for filing in various
+emerging markets. The Company has also
+filed 100+ drug master files across various
+markets during the year.
+3.
+(a) Offers complete basket of products under
+chronic therapeutic classes. Many products
+are in the pipeline for future introduction in
+India, emerging markets, as well as US and
+European generic market. The company has
+developed an ability to challenge patents in
+the US market, and earn exclusivity.
+Benefits derived as a result of the above efforts
+e.g. product improvement, cost reduction,
+product development, import substitution
+Novel compact dosage forms having
+differentiation with regards to improved stability
+and/or reduced pharmacokinetic variability have
+been developed for the Indian market. Stable
+liquid oral formulations of labile products are
+also being developed.
+Process optimization based on Quality by Design
+(QbD) concept and robustness by six sigma
+calculation have been implemented for wide
+range of products with the objective to reduce
+cost and increase in-process capability.
+There has been thrust on the development of
+novel technologies like use of green reagents for
+chemical transformations in API synthesis, use of
+PAT tools in process development, and advanced
+crystallization and powder processing techniques
+like ultrasonic crystallisation for achieving
+required particle size and physical characteristics
+for formulation, plug flow reactors, advanced flow
+reactors for continuous process and safety related
+studies using reaction calorimetry and other
+advanced process engineering tools. Product Life
+Cycle management has been undertaken for key
+products. Backward integration is a key strategic
+objective and many of our products enjoy the
+benefit of this backward integration.
+Investments have been made in employing
+scientifically skilled and experienced manpower,
+adding technologically advanced and latest
+equipment, sponsored research and in accessing
+world class consultants to continuously upgrade
+the research understanding of the scientific
+team in the technologies and therapy areas of
+our interest.
+Board's Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+16,316.7
+14,903.2
+Total R&D
+10.51%
+10.65%
+expenditure as %
+(f)
+Total
+(B) Technology Absorption, Adaptation and
+1.
+Innovation
+Efforts in brief, made towards technology
+absorption, adaptation and innovation
+The Company continues to invest on R&D, both as
+revenue expenses as well as capital investments.
+This spending is directed at developing complex
+products, specialty products, generic products,
+and API technologies. Some of these products
+may require dedicated manufacturing blocks.
+2.
+of Total Turnover
+The Company has benefited from reduction
+in cost due to import substitution and
+increased revenue through higher exports.
+(g) Clinical studies of some products (complex
+and difficult to formulate) have been carried
+out at our in-house clinical pharmacology
+units. This has helped to maintain R&D
+quality and regulatory compliance with
+significantly reduced cost.
+Your Company has not imported technology
+during the last 5 years reckoned from the
+beginning of the financial year.
+• Extended the Whistle Blower mechanism to external
+stakeholders which enables anonymous complaints.
+• Our policy on Global Code of Conduct sets forth legal
+and ethical standards of conduct for us, to ensure
+compliance with legal requirements and serves as a
+guide for our daily business interactions, reflecting our
+standard for appropriate behavior and our corporate
+values, is made applicable to all the employees (whether
+permanent or temporary) as well as employees of our
+subsidiaries, affiliates and business units within and
+outside India (except any publicly held companies and
+its subsidiaries and affiliates).
+• Sharing of general guide for investors - FAQs and Guide
+book is made available on the website of the Company at
+the link https://sunpharma.com/investors-faqs/ for the
+convenience of shareholders.
+• The Company sends on quarterly basis, the quarterly
+results along with summary of significant events to the
+shareholders whose e-mail IDs are available with the
+Company/Registrar.
+• The Company has been spending on CSR activities in
+some of the previous years on voluntary basis more
+than legally required.
+• The Company initiated payment of unpaid dividend of
+past seven years of those shareholders whose recent
+dividend was electronically credited and their updated
+Bank details were available based on updated KYC.
+This activity facilitated reduction in the amount of
+unpaid dividend as well as the corresponding shares,
+as applicable, to be transferred to IEPF.
+• The Company constituted a Corporate Governance
+and Ethics Committee, with the objective to monitor
+Company's compliance with the Corporate Governance
+guidelines and applicable laws and regulations, make
+recommendations to the Audit Committee and thereby
+to the Board on all such matters and on corrective
+actions, if any, to be undertaken, review and ensure
+implementation of ethical standards and practices in
+respect of Corporate Governance by the Company in
+spirit, substance and intent perspective.
+1.
+In compliance with Regulation 34(3) read with Schedule
+V of the Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015 ("Listing Regulations"), as amended from time to
+time the Company submits the Corporate Governance
+Report for the year ended March 31, 2022.
+Sun Pharmaceutical Industries Limited's philosophy
+envisages reaching people touching lives globally by
+following the core values of the Company viz Quality,
+Reliability, Consistency, Trust, Humility, Integrity,
+Passion and Innovation which are also a way of life
+at the Company. These values form a base of the
+Corporate Governance practices of the Company.
+The Company ensures to work by these principles
+in all its interactions with stakeholders, including
+shareholders, employees, customers, consumers,
+suppliers and statutory authorities.
+Sun Pharmaceutical Industries Limited is committed
+to learn and adopt the best practices of Corporate
+Governance.
+62
+Corporate Overview
+Statutory Reports
+COMPANY'S PHILOSOPHY ON CODE OF
+CORPORATE GOVERNANCE
+14,519.4
+• The Company has appointed Dr. Pawan Goenka,
+Independent Director of the Company as the Lead
+Independent Director.
+Sun Pharma ensures adherence to regulatory requirements
+at all times and is committed to implement the highest
+standards of Corporate Governance and ethical practices.
+In the last few years, the Company has taken various
+initiatives to implement the best practices with a focus on
+further enhancing the Corporate Governance standards.
+(C) Foreign Exchange Earnings and Outgo -
+Year ended
+March 31, 2022
+Earnings
+Outgo
+106,330.5
+71,874.3
+(in Million)
+Highlights of the Corporate Governance Initiatives at
+Sun Pharma:
+Year ended
+March 31, 2021
+50,755.6
+Scaling up Specialty. Leading with Care.
+61
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+CORPORATE GOVERNANCE
+CORPORATE GOVERNANCE INITIATIVES AT
+SUN PHARMA
+97,936.1
+383.8
+787.0
+15,529.7
+Year ended
+March 31, 2021
+Sun Pharma is providing facilities in Government
+schools with consistent access to electricity for an
+uninterrupted learning and teaching experience. We
+have installed rooftop solar systems in two government
+schools till date. In the FY 2021-22 we have installed
+3Kwph rooftop solar system in Halol area. The company
+has Contributed 0.24 Million for this activity during
+the FY 2021-22.
+13) DRINKING WATER
+The project aims to provide access to safe and
+potable water to community, Sun Pharma has
+rejuvenated community drinking water storage tanks
+at Madurantakam, Toansa and Panoli with provision
+of piped water connection to individual households
+for potable water supply for community. Company has
+constructed water storage tank with maintenance of
+tube well and made an arrangement of piped water for
+individual households for supply of safe and potable
+drinking water to community of Toansa (Punjab).
+Company has constructed 10 KL water storage tank at
+Vilad village and 20 KL water storage tank at Karjune
+khare village in Ahmednagar, Maharashtra to make safe
+and potable drinking water available to all. This project
+benefitted to 285 households with an investment of
+* 1.02 Million during the FY 2021-22.
+14) WATER CONSERVATION
+Rainwater harvesting system was installed in a Govt.
+School at Halol to collect, store and consume rainwater
+for landscape irrigation and other uses of schools.
+During FY 2021-22, as a pilot project we introduced
+rain water harvesting structure with aim to save
+water from going down to the drains and store it to
+utilize for sanitation facilities as well as gardening
+and watering trees in schools. The company has
+contributed 0.31 million for this project which has
+been benefitting to nearby community.
+15) PROVISION OF COVID-19 RELIEF MATERIALS &
+AWARENESS
+12) SOLAR ROOFTOP SYSTEM
+Sun Pharma has supported local administration and
+communities to combat prevention of COVID-19.
+Various activities were taken up such as medicines,
+PPES, sanitizers, beds, ventilators, oxygen
+concentrators and essential medicines to covid care
+centres and Government facilities including setting-up
+of five Oxygen Plants in different Govt. Hospitals to
+combat the second wave of COVID-19 in FY2021-22,
+Sun Pharma has spent the sum of 22.97 Million on
+COVID-19 activities.
+59
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+ANNEXURE - E
+Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo required under
+the Companies (Accounts) Rules, 2014
+A.
+CONSERVATION OF ENERGY
+Scaling up Specialty. Leading with Care.
+The company is fully committed for energy
+conservation in its various operations and has a
+dedicated energy management team for constant
+monitoring and analysing energy consumption. Various
+projects are taken year on year to reduce energy
+consumption and improve energy efficiency.
+contributed 0.76 million during the financial year
+2021-22 for this project which is been benefitting to
+nearby community.
+11) TREE PLANTATION
+Decision Making Skills
+Leadership Skills
+Corporate Overview
+Statutory Reports
+Financial Statements
+Board's Report
+7)
+Tree plantation is a regular activity at Sun Pharma
+in and around its operation sites. We have not only
+planted trees but also ensured their survival by
+erecting tree guards and carefully nurtures them till the
+sapling matures into a tree. The Company has planted
+saplings under CSR activity and maintained greenery
+in and around the plant premises. The company has
+PROMOTION OF SCIENTIFIC MEDICAL &
+The project has been undertaken with aim to sharing
+medical and pharma research for public benefit and
+awareness after carrying-out scientific and health
+research for Improvement of public health. This helped
+young scientist and scholars in the field of medical
+and pharma aimed at improvement of public health.
+The company has contributed 1.50 Million during
+FY2021-22 and the project has been implemented by
+Sun Pharma Science Foundation.
+8) SETTING-UP OF DIGITAL CLASSROOM PROJECT
+In order to enhance the quality of education in Govt.
+schools through digital mode, company has setup
+digital class rooms at schools located at Ankleswar,
+Halol and Karkhadi. This project has benefitted to
+1094 Students with an investment of 1.45 million in
+FY2021-22.
+INSTALLATION OF SOLAR STREET LIGHTS
+Solar street lights are the best ways to light the streets
+in rural unserved areas to provide community lighting.
+Solar energy is the cleanest and most abundant
+renewable energy source available and it is increasing
+in popularity because it is versatile with many benefits
+to people and the environment. Company has installed
+solar street lights under CSR initiative in vicinity of our
+plants. Solar street lights were installed at Vilad village
+in Ahmednagar District to provide community lighting
+in unserved areas and benefited rural communities.
+The company has Contributed 0.20 Million for this
+activity during the financial year 2021 - 22.
+10) RURAL INFRASTRUCTURE DEVELOPMENT
+PROJECTS
+With aim to uplift rural communities by upgrading
+much needed rural infrastructure facilities. Sun
+Pharma helped rural communities by developing basic
+infrastructure facilities. This project has benefitted
+the communities at large through various activities
+such as Installation of Solar street lights, renovation
+of Anganwadi center and community centers. The
+company has contributed * 1.81 Million in the project
+during the financial year 2021-22, with benefit being
+extended to communities.
+PHARMA RESEARCH OUTCOMES FOR PUBLIC
+HEALTH IMPROVEMENT
+Financial Statements
+The dedicated energy management team is
+working with systematic approach towards energy
+conservation. The Halol, Dadra, Dewas and Mohali
+sites of the Company are ISO 50001:2008 (Energy
+Management System) Certified.
+Steps taken or impact on Conservation of Energy
+• Reduced power consumption in compressed
+air system with the introduction of Intelligent
+flow controller.
+diesel consumption.
+• Utilization of flash steam for hot
+water generation.
+• Utilization of VFD in compressed air system.
+• Energy efficient Axial pump installed in MEE to
+reduce power consumption.
+• Reduced power consumption in refrigeration
+system with the use of automatic tube
+cleaning system.
+• Improved efficiency in plant lighting.
+• Synchronization of DG to reduce
+B.
+TECHNOLOGY ABSORPTION
+(A) Research and Development
+Expenditure on R&D -
+Capital
+Revenue
+Year ended
+March 31, 2022
+(in Million)
+Capital investment of 219.8 Million has been
+made on energy conservation Equipment.
+1.
+• Reduced pumping power in chilled water
+system by installation of Closed loop
+pumping system.
+utilizing waste heat for preheating MEE feed.
+• Improved pumping efficiency at various
+location by installation of energy efficient
+pumping system
+• Replacement of old inefficient brine
+2.
+Steps taken by the Company for utilising
+alternate sources of energy
+Company has taken various initiative for
+utilization of alternate source of energy. Majority
+of site like Ahmednagar, Baddi, Dadra, Dahej,
+Dewas, Kharkhadi, Malanpur, Mohali, Poanta
+shahib, Panoli, Silvasa, Toansa are mostly utilizing
+sustainable green fuel biomass as boiler fuel for
+steam generation.
+Captive solar powerplant at Dewas helps us to
+substitute major part of electricity consumed for
+site operation to renewable energy.
+• Minimization of steam distribution losses
+though steam trap optimization.
+MKM site is using wind power for its partial
+power requirement.
+3.
+Capital investment on energy conservation
+equipments
+60
+compressor with energy efficiency compressor
+and improved Chiller performance (ikw/TR).
+• Use of dry vacuum pump in place of
+steam ejectors.
+• Steam consumption at MEE reduced by
+Guwahati, Gurgaon R&D, Dadra, Ahmednagar,
+Panoli and Silvasa sites are using solar rooftop for
+its partial power requirement.
+Corporate Governance
+9)
+BOARD OF DIRECTORS
+1
+1
+2
+Yes
+5
+5
+Dr. Pawan Goenka
+3
+3
+7
+Yes
+5
+5
+Ms.Rama Bijapurkar
+1
+3
+4
+Mr. Vivek Chaand Sehgal4
+2
+2
+Yes
+NA
+ΝΑ
+Notes:
+금금
+NA
+Mr. Gautam Doshi
+5
+5
+Yes
+1
+NA
+1 The above number of other directorships does not include Directorships, Committee Memberships and Committee Chairmanships in
+Private Limited, Foreign and Section 8 Companies.
+2 The Committee Memberships and Chairmanships in other Companies include Memberships and Chairmanships of Audit and Stakeholders'
+Relationship Committee only.
+3 Ms. Rekha Sethi, retired as director of the Company with effect from August 31, 2021.
+Mahindra and Mahindra Financial Services Limited
+Apollo Hospitals Enterprise Limited
+Non-Executive and Independent
+Non-Executive and Independent
+VST Industries Limited
+In terms of requirement of Listing Regulations, the Board has identified the core skills/expertise/competencies of
+the Directors, as given below:
+Knowledge
+Specialisation / Expertise
+Non-Executive and Independent
+Finance & Accounts
+Industry Knowledge
+Risk Management
+General Management
+Skills
+2.
+Strategic Thinking/ Planning Skills
+Problem Solving Skills
+Governance
+NA
+Non-Executive and Independent
+Non-Executive and Independent
+4 Mr. Vivek Chaand Sehgal, resigned as a director with effect from September 1, 2021.
+Scaling up Specialty. Leading with Care.
+63
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Names of the Indian listed entities where the Directors of the Company hold Directorship and the category of
+directorship as on March 31, 2022:
+Name of the Director
+Mr. Dilip S. Shanghvi
+Mr. Sudhir V. Valia
+Mr. Gautam Doshi
+Dr. Pawan Goenka
+Ms. Rama Bijapurkar
+Non-Executive and Independent
+Other Indian Listed entities in which they hold Directorship
+Sun Pharma Advanced Research Company Ltd
+Sun Pharma Advanced Research Company Ltd
+Suzlon Energy Limited
+Nestle India Limited
+Cummins India Limited
+Category of Directorship
+Non-Executive Chairman
+Non-Executive and Non-Independent Director
+Non-Executive and Independent
+Bosch Limited
+NA
+Legal
+2
+Number of Board meetings held during the year ended March 31, 2022 and the dates on which held:
+Five Board meetings were held during the year. The dates on which the meetings were held during the year ended
+March 31, 2022 are as follows:
+May 27, 2021; July 30, 2021; November 2, 2021; January 31, 2022 and March 21, 2022.
+Number of Board meetings the Directors were entitled to attend, attendance of each Director at the Board meetings
+and at the last Annual General Meeting (AGM) held by audio-visual means, and number of other Directorships and
+Chairmanships/Memberships of Committee of each Director for the year under review, is given below:
+Attendance particulars for the
+year ended March 31, 2022
+Number of
+Ms. Rekha Sethi, retired as director of the Company with effect from August 31, 2021.
+Mr. Vivek Chaand Sehgal, resigned as a director with effect from September 1, 2021.
+Number of
+Board Meetings
+March 31, 2022¹
+Committee
+Committee
+Memberships² Chairmanships²
+Name of the Director
+Last AGM held
+No. of other Directorships and Committee
+Memberships / Chairmanships as of
+Board Meetings
+Entitled to
+(Appointed with effect from May 21, 2021)
+Ms. Rama Bijapurkar
+Category of Directors
+Yes
+Non-Promoter Non-Executive and
+The present strength of the Board of Directors of your Company is eight Directors.
+Composition and category of Directors is as follows:
+Non-Independent Director
+Promoter Executive Director
+(Appointed with effect from May 21, 2021)
+Dr. Pawan Goenka
+Non-Executive Independent Directors
+Inter-se Relationship between Directors
+Mr. Israel Makov (Chairman)
+Mr. Dilip S. Shanghvi (Managing Director)
+Mr. Sudhir V. Valia
+Brother-in-law of Mr. Sudhir V. Valia
+Brother-in-law of Mr. Dilip S. Shanghvi
+Mr. Sailesh T. Desai (Whole-time Director)
+Mr. Kalyanasundaram Subramanian
+(Whole-time Director)
+Mr. Gautam Doshi
+Name of the Directors
+Other
+Non-Promoter (however part of Promoter Group)
+Non-Executive and Non Independent Director
+Non-Promoter Executive Directors
+Directorships
+Subramanian
+on August
+2
+Yes
+3
+Yes
+55
+5
+Mr. Kalyanasundaram
+5
+2
+Mr. Sailesh T. Desai
+1
+3
+4
+5
+5
+attended
+31, 2021
+Yes
+attend
+Mr. Israel Makov
+5
+5
+Yes
+Ms. Rekha Sethi³
+Mr. Sudhir V. Valia
+5
+5
+5
+Yes
+Mr. Dilip S. Shanghvi
+1
+40,000
+668
+676
+754
+774
+Statutory Reports
+794
+818
+52,587
+52,483
+800
+794
+51,937
+Apr-21 May-21 Jun-21
+40,000
+Jul-21 Aug-21
+Sep-21
+Oct-21
+Nov-21
+700
+650
+600
+Dec-21 Jan-22
+Feb-22
+Mar-22
+56,247
+BSE Sensex (Closing) - Closing Price of Sun Pharma's Share on BSE
+Corporate Overview
+655
+750
+60,000
+845
+500
+450
+400
+Financial Statements
+350
+300
+250
+200
+Jul-21
+Aug-21
+Sep-21
+Oct-21
+-- NSE Nifty (Closing)
+Nov-21 Dec-21 Jan-22
+Closing Price of Sun Pharma's Share on NSE
+834
+Feb-22
+Sun Pharmaceutical Industries Limited & BSE Sensex closing price:
+65,000
+55,000
+45,500 48,782
+950
+915
+900
+59,126 59,307
+58,254 58,014
+57,552
+843
+57,065
+850
+58,569
+Mar-22
+Corporate Governance
+90.88
+% change in
+90.38
+-57.45
+5 Years
+33.02
+97.73
+-64.71
+10 Years
+220.99
+229.80
+-8.81
+10 Years
+221.26
+236.52
+-15.26
+(Source: Compiled from data available on BSE and NSE website)
+15.9 Registrars & Transfer Agent
+Registrars & Transfer Agent
+(Share transfer and communication regarding share certificates,
+dividends and change of address)
+Link Intime India Pvt. Ltd.
+C 101, 247 Park, LBS Marg,
+Vikhroli West, Mumbai 400 083
+E-Mail: rnt.helpdesk@linkintime.co.in
+Tel: 022-49186270
+Fax: 022-49186060
+15.10 Share Transfer System
+Effective from April 1, 2019, SEBI has mandated that shares can be transferred only in Demat. Hence no transfer of
+shares in physical form can be lodged by the shareholders.
+15.11 Distribution of Shareholding as on March 31, 2022
+550
+No. of Equity Shares held
+Upto 5,000
+32.93
+5 Years
+39.44
+51.45
+% change in
+Sun Pharma
+Period
+Nifty
+Share Price
+Sun Pharma
+relative to Nifty
+Period
+Sun Pharma
+Share Price
+BSE Sensex
+Sun Pharma
+relative to
+Sensex
+Year-on-Year
+2 Years
+53.02
+159.65
+15.8 Share price performance relative to NIFTY and BSE Sensex based on share price on March 31, 2022
+18.88
+103.13
+Year-on-Year
+53.08
+18.30
+34.78
+56.52
+2 Years
+159.74
+98.75
+60.99
+3 Years
+91.03
+50.25
+40.78
+3 Years
+34.14
+600
+850.95
+16,794
+652.70
+780.10
+664.10
+783.75
+664.20
+August, 2021
+September, 2021
+October, 2021
+November, 2021
+December, 2021
+January, 2022
+804.40
+743.50
+804.35
+743.35
+833.25
+751.10
+832.95
+751.05
+850.00
+779.00
+851.00
+779.35
+835.90
+746.50
+836.00
+746.05
+850.90
+733.95
+686.35
+652.75
+686.00
+642.00
+Last week of July 2022/First week of August 2022.
+5,001 10,000
+Last week of October 2022/First week of November 2022.
+Last week of January 2023/First week of February 2023.
+Third or Fourth week of May 2023.
+15.3 Details of Record Date for payment of Dividend to Equity Shareholders:
+Monday, August 22, 2022
+15.4 Dividend Payment Date:
+On or before, Tuesday, September 20, 2022
+15.5 Listing Details
+(a) Trading Symbol at BSE Ltd., Market Operations Dept., P. J. Towers, Dalal Street, Mumbai - 400 001
+524715
+(b) Trading Symbol at National Stock Exchange of India Limited, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, SUNPHARMA
+Bandra Kurla Complex, Bandra (East), Mumbai - 400 051
+(c) Demat ISIN Numbers in NSDL and CDSL for Equity Shares of *1/- each
+ISIN INE044A01036
+The Company has paid the Listing fees for the Financial Year 2021-22 to BSE Ltd and National Stock Exchange of
+India Ltd.
+733.70
+15.6 Stock Market Data - Equity Shares of ₹1/- paid-up value:
+Month's High Price Month's Low Price
+National Stock Exchange of India Ltd.
+(NSE) (in )
+Month's High Price
+Month's Low Price
+April, 2021
+May, 2021
+June, 2021
+July, 2021
+666.50
+592.60
+666.60
+592.75
+721.90
+640.00
+721.85
+BSE Ltd. (BSE) (in)
+650
+871.00
+871.00
+13,500
+13,000
+Apr-21 May-21
+Jun-21
+1,000
+915
+950
+846
+835
+844
+900
+818
+17672
+794
+850
+774
+O
+754
+800
+17618
+O
+795
+17,354
+17,340
+17,465
+750
+17,132
+16,983
+700
+14,000
+14,500
+14,631
+15,000
+784.80
+February, 2022
+902.50
+815.00
+902.85
+815.00
+March, 2022
+930.90
+809.50
+931.00
+809.10
+Scaling up Specialty. Leading with Care.
+73
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+785.00
+15.7 Share Price performance in comparison to broad-based indices - BSE Sensex and NSE Nifty:
+Sun Pharmaceutical Industries Limited & NSE Nifty closing price:
+19,000
+18,500
+18,000
+17,500
+16,000
+668
+675
+654
+16,500
+16,000
+15,500
+15,722
+15,583
+O
+15,763
+74
+10,001 20,000
+Aggregate number of
+30,001 - 40,000
+12
+5,200
+12
+5,200
+284
+125,516
+*The voting rights in respect of these shares shall remain frozen
+till the claim of the righteous shareholders is approved by the
+Company.
+76
+Corporate Overview
+Statutory Reports
+Financial Statements
+Corporate Governance
+15.15 Disclosure of commodity price risk or foreign
+exchange risk and commodity hedging activities
+The Company is exposed to foreign exchange risks
+emanating from our business, assets and liabilities
+denominated in foreign currency. In order to hedge
+this risk, the Company proactively uses hedging
+instruments e.g. forward contracts, options and
+other simple derivatives from time to time. The
+Company does not have any significant exposure on
+commodities directly.
+15.16 Plant locations as on March 31, 2022:
+1)
+2)
+3)
+Survey No.214 and 20, Govt. Industrial Area,
+Phase-II, Piparia, Silvassa - 396 230, U.T. of D
+& NH.
+Survey no. 259/15, Dadra - 396191, U.T. of D.
+& NH.
+Plot No.24/2 and No.25, GIDC, Phase- IV, Panoli -
+395 116, Dist. Bharuch, Gujarat.
+4)
+Plot No. 4708, GIDC, Ankleshwar - 393
+002, Gujarat.
+5)
+6)
+Halol-Baroda Highway, Near Anand Kendra, Halol,
+Dist. Panchmahal- 389350 Gujarat.
+Plot No. 817/A, Karkhadi - 391 450, Taluka: Padra,
+Dis5. Vadodara, Gujarat.
+7)
+8)
+Unclaimed Suspense Account as
+on March 31, 2022.
+outstanding shares lying in the
+Number of shareholders who
+approached the Company for
+transfer of shares from the said
+Unclaimed Suspense Account
+during the period from April 1,
+2021 up to March 31, 2022
+Number of shareholders to whom
+shares were transferred from the
+Unclaimed Suspense Account
+during the said period from April
+1, 2021 up to March 31, 2022.
+Aggregate number of
+shareholders and the
+There are no Stock Options outstanding as on March
+31, 2022.
+Liquidity:
+Our Company's equity shares are fairly liquid and are
+actively traded on National Stock Exchange of India
+Ltd., (NSE) and The BSE Ltd. (BSE). Relevant data
+for the average daily turnover for the financial year
+FY 2021-22 is given below:
+Outstanding Unclaimed Shares
+The status of outstanding unclaimed shares in the
+Unclaimed Share Suspense Account of the Company is
+as under:-
+Particulars
+shareholders and the
+outstanding shares lying in the
+Unclaimed Suspense Account as
+on April 1, 2021.
+No. of
+No. of equity
+shares of
+Shareholders
+*1/- each
+296
+130,716
+9)
+In no. of shares
+NSE
+4,718.06
+BSE + NSE
+4,931.24
+(in Thousands)
+In value terms
+167.67
+3,541.58
+3,699.99
+(* Million)
+(Source: Compiled from data available on NSE and BSE website)
+15.14 Outstanding GDRs/ADRs/Warrants or any
+Convertible instruments, conversion date and likely
+impact on equity:
+The Company does not have any outstanding GDRs/
+ADRs/Warrants/Convertible Instruments as on March
+31, 2022.
+Outstanding Stock Options
+BSE
+223.24
+About 99.72% of the outstanding Equity shares
+have been dematerialised up to March 31, 2022.
+Trading in Shares of the Company is permitted only in
+dematerialised form.
+Plot No. Z/15, Sez-1, Po. Dahej, Taluko vagra,
+Dist. Bharuch, Gujarat.
+Plot No. B-2 Madkai Industrial Estate, Ponda, Goa
+Scaling up Specialty. Leading with Care.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+15.18 List of all credit ratings
+Rating Agency
+ICRA Limited
+CRISIL Limited
+Instrument Type
+Bank Facility (Short-Term Scale)
+Long-Term/Short-Term Borrowing
+Commercial Paper
+Bank Facility (Short-Term)
+Bank Facility (Long-Term)
+Commercial Paper
+Rating
+[ICRA] A1+
+[ICRA] AAA (Stable)/ [ICRA] A1+
+[ICRA] A1+
+CRISIL A1+
+CRISIL AAA/ Stable
+CRISIL A1+
+Remarks
+No revisions in credit rating
+during the FY22
+No revisions in credit rating
+during the financial year
+FY22
+Date: May 30, 2022
+For and on behalf of the Board,
+Dilip S. Shanghvi
+Managing Director
+(DIN: 00005588)
+Sailesh T. Desai
+Whole-time Director
+(DIN: 00005443)
+ANNEXURE 'A' TO CORPORATE GOVERNANCE REPORT
+DECLARATION OF COMPLAINCE WITH CODE OF CONDUCT FOR THE YEAR ENDED MARCH 31, 2022
+I, Dilip S. Shanghvi, Managing Director of Sun Pharmaceutical Industries Limited ("the Company") hereby declare that, to
+the best of my information, all the Board Members and Senior Management Personnel of the Company have affirmed their
+compliance and undertaken to continue to comply with the Global Code of Conduct laid down by the Board of Directors of
+the Company.
+Date: May 30, 2022
+78
+For Sun Pharmaceutical Industries Ltd.,
+Dilip S. Shanghvi
+Managing Director
+(DIN: 00005588)
+Results for quarter ending September 30, 2022
+Results for quarter ending December 31, 2022
+Audited Results for year ended March 31, 2023
+Direct no. (+91 22) 4324 2231
+Email: secretarial@sunpharma.com
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324,
+Sun House, Plot No. 201 B/1,
+Sun Pharmaceutical Industries Limited
+10) Village & PO Ganguwala, Tehsil Paonta
+Sahib-173025, Distt. Sirmour, Himachal Pradesh
+11) Village Toansa, P.O. Railmajra Distt.
+Nawansahar-144533 (Punjab)
+12) A-41, Industrial Area, Phase VIII-A, Sahibzada Ajit
+Singh Nagar, Mohali-160071 (Punjab)
+13) Plot No. K - 5,6,7, Ghirongi Industrial Area,
+Malanpur, Dist. Bhind, Madhya Pradesh
+14) Pharma Manufacturing Industrial Area 3 A.B.
+Road, Dewas-455001, Madhya Pradesh
+15) Sathammai Village, Karunkuzhi Post,
+Maduranthakam T.K. Kanchipuram Dist. Tamil
+Nadu 603 303.
+16) Khasra No.
+-
+1335-1340, Near Epip Phase-1,
+Hill Top Industrial Area, Vill.-Bhatolikalan, P.O.-
+Barotiwala, Distt-Solan, Himachal Pradesh, India
+174103
+15.17 Investor Correspondence:
+Registrars & Transfer Agent:
+Individual Investors & Queries Related to Shares/
+Dividend, etc. Secretarial Department
+Institutional Investors:
+Mr. Nimish Desai
+Nodal Officer (for the purpose of IEPF):
+A-7 & A-8, MIDC Industrial Area, Ahmednagar -
+414 111, Maharashtra.
+Mr. Sunil Ajmera, Company Secretary (upto January 31,
+2022) Mr. Anoop Deshpande, Company Secretary (w.e.f.
+January 31, 2022)
+Unit: Sun Pharmaceutical Industries Limited,
+C 101, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai (INDIA) - 400083
+Tel. No.: +91 22 49186270/
++91 22 49186000
+Fax No.: +91 22 49186060
+E-Mail: rnt.helpdesk@linkintime.co.in/ sunpharma@linkintime.co.in
+Sun Pharmaceutical Industries Limited
+Sun House, Plot No. 201 B/1,
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324,
+Direct no. (+91 22) 4324 2230
+Email: secretarial@sunpharma.com
+Sun Pharmaceutical Industries Limited
+Sun House, Plot No. 201 B/1,
+Western Express Highway, Goregaon (E), Mumbai - 400063
+Telephone: (+91 22) 4324 4324,
+Direct no. (+91 22) 4324 2778
+Email:nimish.desai@sunpharma.com
+Link Intime India Private Limited,
+20,001 30,000
+15.13 Dematerialisation of Shares
+Others
+0.9125
+8,267,415
+0.3446
+5,853,329
+0.2440
+5,169,542
+0.2155
+19,253,601
+0.8025
+93.2619
+100.000
+2,237,665,188
+2,399,334,970
+15.12 Category-wise Shareholding as on March 31, 2022 of Equity Shares
+Sr.
+Particulars
+No.
+A.
+Indian Promoters and Persons acting in Concert
+B.
+Mutual Funds
+C.
+Banks/ Financial Institutions and Insurance Companies
+D.
+Private Corporate Bodies
+E.
+Indian Public
+F.
+Directors
+G.
+21,893,532
+0.7581
+18,189,988
+3.4611
+40,001
+50,000
+50,001 100,000
+100,001 and above
+Total
+No. of folios
+Numbers
+676,323
+2,550
+1,700
+% to total folios
+99.1388
+0.3738
+0.2492
+336
+NRIs/ OCBs
+0.0493
+ΠΠ
+165
+0.0242
+113
+0.0166
+264
+0.0387
+747
+0.1095
+731,768
+100.000
+Numbers
+% to total folios
+83,042,375
+Shares of face value 1/- each
+(%)
+H. Trusts
+Foreign Portfolio Investor (Corporate)
+2,399,334,970
+100.00
+75
+15
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Shareholding Pattern as on March 31, 2022:
+0.09
+0.62
+Indian Promoters & Persons Acting in Concert
+Mutual Funds and UTI
+0.00
+2.61
+14.44
+0.93
+0.09
+0.31
+6.49
+54.48
+0.00
+08.31
+11.63
+Banks/ Financial Institutions and Insurance Companies
+Private Corporate Bodies
+Indian Public
+Directors
+NRIs / OCBS
+Trusts
+Foreign Portfolio Investor(Corporate)
+Foreign National
+Foreign Banks and Foreign Companies
+IEPF
+0.62
+0.09
+2,033,839
+14,877,809
+0.00
+J.
+Foreign National
+K. Foreign Bank and Foreign Companies
+L.
+IEPF
+M. Others
+Total
+Scaling up Specialty. Leading with Care.
+No. of Shares
+Percentage
+1,307,134,535
+54.48
+279,008,856
+11.63
+199,392,213
+I.
+8.31
+2.61
+155,666,320
+6.49
+2,167,347
+0.09
+7,556,816
+0.31
+22,414,233
+0.93
+346,442,453
+14.44
+13,731
+0.00
+17,775
+62,609,043
+Results for quarter ending June 30, 2022
+77
+Through Video Conferencing/Other Audio Visual means
+In accordance with Regulation 16 of the Listing
+Regulations during the year ended March 31, 2022,
+Sun Pharmaceutical Industries, Inc, Taro Pharma
+Canada and Sun Pharma Holdings, were material
+subsidiary companies whose turnover or net worth
+as per Companies Act, 2013 exceeded 10% of the
+consolidated turnover or net worth respectively, of
+the Company and its subsidiaries in the immediately
+11. SUBSIDIARY COMPANIES
+The Corporate Governance and Ethics Committee
+comprises of Mr. Gautam Doshi, Director, Dr. Pawan
+Goenka, Director, Mr. C. S. Muralidharan, Chief
+Financial Officer and Mr. Ashok Bhuta Senior GM -
+Secretarial & Compliance Officer as the members of
+the Committee. Mr. Gautam Doshi is the Chairman of
+the Committee. Dr. Pawan Goenka has been appointed
+as the member of the Committee with effect from
+May 27, 2021. Ms. Rekha Sethi ceased to be a Director
+10. CORPORATE GOVERNANCE AND ETHICS
+COMMITTEE
+** Dr. Pawan Goenka was appointed as the member of the
+Committee effective from May 27, 2021
+* Ms. Rekha Sethi ceased to be a Director and member of the
+Committee effective from August 31, 2021
+3
+Scaling up Specialty. Leading with Care.
+3
+3
+6
+6
+Mr. Ashok Bhuta
+3
+3
+6
+3
+69
+69
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+2020-21
+2019-2020 Twenty-Eighth
+AGM
+AGM
+Meeting
+2018-2019 Twenty-Seventh
+Year
+(i) Location and time of the last three Annual General Meetings:
+12. GENERAL BODY MEETINGS
+August 27, 2020 3:30 p.m.
+August 28, 2019 3:15 p.m.
+Time
+The policy for determining material subsidiaries
+of the Company is available on the website
+of the Company and can be accessed at:
+https://www.sunpharma.com/policies.
+The Board of Directors of the Company reviewed
+periodically, the statement of all significant
+transactions and arrangements entered into by the
+unlisted subsidiary companies. Copies of the Minutes
+of the Board Meetings of the unlisted subsidiary
+Companies were placed at the Board Meetings of the
+Company held during the year.
+The financial statements including investments made
+by the unlisted subsidiaries were placed before and
+reviewed by the Audit Committee of the Company.
+Ms. Rama Bijapurkar, Independent Director of the
+Company is also Director on the Board of Sun Pharma
+Laboratories Limited and Sun Pharma Distributors
+Limited. Mr. Gautam Doshi, Independent Director
+of the Company is also Director on the Board of
+Sun Pharma Laboratories Limited, Sun Pharma
+Holdings, Taro Pharma USA and Sun Pharmaceutical
+Industries, Inc.
+preceding accounting year and Sun Pharma
+Laboratories Limited and Sun Pharma Distributors
+Limited were material subsidiary companies whose
+turnover or net worth as per Companies Act, 2013
+exceeded 20% of the consolidated turnover or net
+worth respectively, of the Company and its subsidiaries
+in the immediately preceding accounting year.
+6
+Twenty-Ninth
+Mr. C S Muralidharan
+3
+& Ethics
+Number of
+Corporate
+Governance
+Number of
+Corporate
+Governance &
+Ethics Committee
+Meetings entitled
+to attend
+Name of the Member
+The attendance of each Member of the Committee is
+given below:
+Six meetings of the Corporate Governance and Ethics
+Committee were held during the year ended March
+31, 2022. The dates on which the Meetings were held
+are as follows: May 26, 2021; July 29, 2021; October
+29, 2021; December 22, 2021; January 29, 2022 and
+March 21, 2022
+and member of the Committee effective from August
+31, 2021. The terms of reference of committee inter
+alia include: to review the ethical standards and best
+practices in respect of Corporate Governance by the
+Company in spirit, substance and intent perspective
+apart from benchmarking wherever possible with
+the best practices that are comparable across the
+industry; to monitor Company's compliance with the
+Corporate Governance Guidelines and applicable
+laws and regulations and make recommendations to
+the Board on all such matters and on any corrective
+action to be undertaken, as the Committee may
+deem appropriate; to set forth policies in respect of
+furtherance of its objectives and recommend changes
+and monitor and review compliance of such policies
+by the Company's directors, officers and employees;
+to review, recommend changes and monitor the
+implementation of the Related Party Transactions
+Policy of the Company and ensure that the Company
+is in compliance with the applicable regulations in
+respect of Related Party transactions from time
+to time etc. The Corporate Governance and Ethics
+Committee reports to the Audit Committee.
+Meetings
+The attendance of each member of committee is
+as follows:
+The terms of reference of the Risk Management
+Committee are: To formulate a detailed risk
+management policy which shall include a framework
+for identification of internal and external risks
+specifically faced by the listed entity, in particular
+including financial, operational, sectoral, sustainability
+(particularly, ESG related risks), information, cyber
+security risks or any other risk as may be determined
+by the Committee, Measures for risk mitigation
+including systems and processes for internal control of
+identified risks, Business continuity plan; to ensure that
+appropriate methodology, processes and systems are
+in place to monitor and evaluate risks associated with
+the business of the Company; to monitor and oversee
+implementation of the risk management policy, including
+evaluating the adequacy of risk management systems;
+to periodically review the risk management policy, at
+least once in two years, including by considering the
+changing industry dynamics and evolving complexity; to
+keep the board of directors informed about the nature
+and content of its discussions, recommendations and
+actions to be taken; to review the appointment, removal
+and terms of remuneration of the Chief Risk Officer (if
+any), to coordinate its activities with other committees,
+in instances where there is any overlap with activities
+of such committees etc.
+Company Secretary of the Company is the Secretary of
+the Committee effective from January 31, 2022. The
+constitution of the Committee meets the requirements
+of Regulation 21 of the Listing Regulations.
+Corporate Governance
+Financial Statements
+Statutory Reports
+Corporate Overview
+15.2 Financial Calendar (tentative):
+During the year ended March 31, 2022, three meetings
+of Risk Management Committee were held on May 25,
+2021, November 01, 2021 and March 21, 2022.
+Committee
+Name of the member
+Mr. Dilip S. Shanghvi
+5
+5
+Dr. Pawan Goenka**
+2
+2
+Ms. Rekha Sethi*
+6
+6
+Mr. Gautam Doshi
+meetings attended
+Number of
+Corporate Social
+Responsibility
+Committee
+Number of Risk
+Management
+Committee
+meetings entitled
+to attend
+attended
+Mr. C S Muralidharan
+Mr. Gautam Doshi
+Mr. Sudhir V. Valia
+3
+AGM
+(Source: BSE and NSE website)
+15 GENERAL SHAREHOLDER INFORMATION
+The auditors have issued an unmodified
+The Company sends quarterly results
+alongwith summary of significant events to the
+shareholders whose e-mail IDs are available
+with the Company/Registrar.
+B.
+A. The Company complies with all the
+mandatory requirements specified under
+Listing Regulations.
+Details of compliance and Adoption/Non-Adoption
+of the non-mandatory requirements for the year
+ended March 31, 2022:
+number of complaints pending as on end of
+the financial year: 0
+number of complaints disposed of during the
+financial year: 2
+opinion to the financial statements of
+number of complaints filed during the financial
+year: 2
+b.
+a.
+•
+• Disclosures in relation to the Sexual Harassment of
+Women at Workplace (Prevention, Prohibition and
+Redressal) Act, 2013:
+• Total fees for all services paid by the listed entity
+and its subsidiaries, on a consolidated basis, to the
+statutory auditor and all entities in the network
+firm/ network entity of which the statutory auditor
+is a part was 165,874,478 (Rupees One Hundred
+and sixty five million eight lakhs seventy four
+thousand four hundred and seventy eight only), for
+the year under review
+• Certificate from a company secretary in practice
+that none of the directors on the board of the
+Company have been debarred or disqualified from
+being appointed or continuing as directors of the
+Company by the Board/Ministry of Corporate
+Affairs or any such statutory authority has
+been annexed as Annexure 'B' to the Corporate
+Governance Report.
+• Apart from the above and sitting fees paid to Non-
+Executive Directors, and proposed Commission
+to be paid to Independent Directors, there are
+no pecuniary transactions with Non-Executive
+directors of the Company or the companies in which
+they are interested which had potential conflict of
+interest with the Company.
+C.
+the Company.
+14. MEANS OF COMMUNICATION
+• Website: The Company's website www.sunpharma.
+com contains a separate dedicated section
+'INVESTORS' where shareholders' information
+is available. The Annual Report for the year and
+Annual Report/ Abridged Annual Report for the
+past years are also available on the website in a
+user friendly and downloadable form. Apart from
+this, official news releases, detailed presentations
+made to media, analysts etc., and the transcript
+of the conference calls are also displayed on the
+Company's website.
+Monday, August 29, 2022 at 03:00 p.m
+Location
+Venue
+Day, Date and Time
+15.1 Annual General Meeting:
+Corporate Governance
+Financial Statements
+Statutory Reports
+Corporate Overview
+12
+72
+• Corporate Filing: Announcements, Quarterly
+Results, Shareholding Pattern etc. of the Company
+are regularly filed by the Company with the Stock
+Exchanges and are available on the website of BSE Ltd.
+- www.bseindia.com and National Stock Exchange of
+India Ltd. - www.nseindia.com and also on the website
+of the Company - www.sunpharma.com.
+• Reminder to Investors: Reminders for unpaid
+dividend are sent to shareholders, regularly
+every year.
+Chairman's Communique: The Chairman's Speech
+is sent to the stock exchanges and placed on the
+website of the Company.
+•
+• Annual Report: Annual Report containing inter alia
+Audited Annual Accounts, Consolidated Financial
+Statements, Board's Report, the Management
+Discussion and Analysis Report, Auditor's Report,
+and other important information is sent to the
+shareholders whose e-mail IDs are registered.
+However pursuant to SEBI Circular No. SEBI/HO/
+CFD/CMD1/CIR/P/2020/79 dated May 12, 2020
+and MCA General Circular No. 20/2020 dated May
+5, 2020 of Ministry of Corporate Affairs, due to
+COVID, no physical copies of the Annual Report for
+FY 2020-21 were sent. Pursuant to SEBI Circular
+dated May 13, 2022 and MCA Circulars dated May
+5, 2022, the Annual Report for FY 2021-22 is being
+sent electronically. Hard copies shall be sent to
+those shareholders who request for the same.
+• Financial Results: The annual, half-yearly and
+quarterly results are regularly posted by the
+Company on its website www.sunpharma.com and
+are also sent to the shareholders whose e-mail IDs
+are registered with the Company. These are also
+submitted to the Stock Exchanges on which the
+securities of the Company are listed in accordance
+with the requirements of the Listing Regulations
+and published in all English Editions of 'Financial
+Express' and Gujarati Edition of 'Financial Express'
+which is published in Ahmedabad.
+• All the transactions with entities in which the
+Independent Directors are/were interested
+constitute negligible percent of the revenue of
+the Company.
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+C.
+Scaling up Specialty. Leading with Care.
+Resolution Passed Through Postal Ballot:
+(2) Approval of maximum remuneration of Mr. Sailesh
+T. Desai Whole-time Director (DIN: 00005443)
+for a period of 2 (Two) years with effect from April
+1 2022 to March 31 2024 i.e. upto the expiry of
+his present term of office.
+At the Twenty-Eighth Annual General Meeting
+(1) Approval of maximum remuneration of Mr. Dilip
+Shanghvi (DIN:00005588), Managing Director, for
+further period of two years i.e. from April, 2021
+to March 31, 2023.
+Mr. Kalyanasundaram Subramanian, (DIN:
+00179072), Whole-time Director, with effect
+from July 04, 2019 till remaining term of his
+appointment upto February 13, 2021.
+(2) Approval of remuneration to be paid to
+commission paid to Non-executive Directors for
+the year 2013-14 pursuant to the letter received
+from MCA in respect of abatement of the pending
+applications for approval of remuneration
+At the Twenty-Seventh Annual General Meeting
+(1) Approval for consent/ratification of excess
+b)
+At the Twenty-Ninth Annual General Meeting
+Approval of re-appointment and maximum
+remuneration of Mr. Kalyanasundaram
+Subramanian (DIN: 00179072) as the Whole-time
+Director of the Company for a further period of
+2 (Two) years effective from February 14, 2021
+upto February 13 2023.
+a)
+(1)
+c)
+(ii) Special Resolutions passed at the last three Annual
+General Meetings:
+71
+Date
+Held through Video Conferencing and deemed to be held at the registered
+office of the Company at SPARC, Tandalja, Vadodara - 390012, as per the
+guidelines issued by the Ministry of Corporate Affairs (MCA) vide General
+Circular No. 14/2020 dated April 8, 2020, General Circular No.17/2020
+dated April 13, 2020 and General Circular No. 20/2020 dated May 05, 2020
+Held through Video Conferencing and deemed to be held at the registered
+office of the Company at SPARC, Tandalja, Vadodara - 390012, as per the
+guidelines issued by the Ministry of Corporate Affairs (MCA) vide General
+Circular No. 14/2020 dated April 8, 2020, General Circular No.17/2020
+dated April 13, 2020 and General Circular No. 20/2020 dated May 05, 2020
+Crystal Hall, Grand Mercure Vadodara Surya Palace, Opposite Parsi Agyari,
+Sayajigunj, Vadodara - 390 020
+No resolution was passed through postal ballot during
+the year under review.
+70
+August 31, 2021 3:00 p.m.
+Corporate Overview
+22,693,009/-) and reimbursement of expenses
+paid 20,330,452 /- (PY: ₹31,917,752);
+Corporate Social Responsibility contribution to
+Shantilal Shanghvi Foundation - 100,000,000/-
+(PY: 100,000,000), in which entities Mr. Sudhir
+Valia, Non-Executive and Non-Independent
+Director is interested except for the subsidiaries
+of the Company wherein it is deemed that
+he does not have any personal/ pecuniary
+interest. d) Transactions with Anshul Speciality
+Molecules Private Limited for Purchase of Goods/
+services 11,292,000/- (PY: 55,253,539/-)
+in which Mr. Gautam Doshi, Non-Executive and
+Independent Director is interested.
+0
+During the year, there were pecuniary transactions
+with the Companies in which Non-Executive
+Directors are interested as follows: a) Transaction
+of receiving of services from Makov Associates
+Limited of 423,882,162/- (Previous Year (PY):
+* 187,243,223/-) in which Mr. Israel Makov,
+Non-Executive and Non-Independent Chairman is
+interested; b) Transactions with MothersonSumi
+INfotech & Designs Limited for receiving of
+services upto September 1, 2021-33,325,498/-
+(PY: 76,841,912/-) and with Anest Iwata
+Motherson Private Limited for receiving of
+services upto September 1, 2021 - 187,664 /-
+(PY: 197,189/-) in which entities Mr. Vivek Chaand
+Sehgal, Non-Executive and Independent Director
+upto September 1, 2021 was interested c)
+Transactions with Sun Petrochemicals Private
+Limited for lease rent received - 10,200,000/-
+(PY: 2,400,000/-), Other operative income/
+other income - 4,800,000, Deposit Received -
+* 850,000, Reimbursement of Expenses - Received
+- 26,175; and with Kism Textiles Private Limited
+for purchase of goods/services - ₹1,262,251/-
+(PY: 206,700); transactions with Sun Pharma
+Advanced Research Company Limited for Revenue
+from contracts with customers- net of returns,
+purchase and sale of property plant and equipment,
+receiving of service expenses, reimbursement
+of expenses paid, rendering of service income,
+reimbursement of expenses received and
+lease rent received - 1,049,266,922 /-
+(PY: 2,166,860,424/-), transaction with Alfa
+Infraprop Private Limited for Other operative
+income/ other income - 9,560,287 (PY:
+of the Company and can be accessed at:
+https://www.sunpharma.com/policies.
+•
+• The policy on dealing with the related party
+transactions is available on the website
+• During the year, one separate meeting of the
+independent directors was held on March 21,
+2022. At the meeting of independent directors
+the performance of non-independent directors
+and the board as a whole was evaluated.
+• Details of the familiarisation programme
+of the independent directors are available
+on the website of the Company at:
+https://www.sunpharma.com/policies.
+-
+• The Company has laid down procedures to inform
+Board members about the risk assessment and
+its minimisation, which is periodically reviewed
+to ensure that risk control is exercised by the
+management effectively.
+• There were no instances of non-compliance by
+the Company on any matters related to the capital
+markets or penalties, strictures imposed on the
+Company by the Stock Exchange or SEBI or any
+statutory authority on any matter related to capital
+markets, during the last three years.
+• No transaction of a material nature has been
+entered into by the Company with its related parties
+that may have a potential conflict with the interests
+of the Company. Register of contracts containing
+transactions, in which directors are interested, is
+placed before the Board of Directors regularly. The
+transactions with the related parties as per Ind AS-
+24, are disclosed in Note 49 of the Notes forming
+part of the Standalone Financial Statements for the
+year ended March 31, 2022.
+• The Board of Directors of the Company has
+approved a Whistle Blower Policy/Vigil Mechanism
+to monitor the actions taken on complaints received
+under the said policy. This policy also outlines the
+reporting procedure and investigation mechanism to
+be followed in case an employee blows the whistle
+for any wrong-doing in the Company. Employees
+are given protection in two important areas -
+confidentiality and against retaliation. It is ensured
+that employees can raise concerns regarding any
+violation or potential violation easily and free of
+any fear of retaliation, provided they have raised
+the concern in good faith. An Ombudsperson/s has
+been appointed to receive the complaints through
+a portal or email or letters who would investigate
+the complaints with an investigating committee. The
+Policy is expected to help to draw the Company's
+attention to unethical, inappropriate or incompetent
+conduct which has or may have detrimental effects
+either for the organisation or for those affected
+by its functions. The details of establishment of
+vigil mechanism are available on the website of the
+Company. No personnel have been denied access to
+the Audit Committee. The Whistle Blower Policy of
+the Company also enables external parties to report
+any matter.
+13. DISCLOSURES
+Corporate Governance
+Financial Statements
+Statutory Reports
+Subsidiary
+100.00%
+No
+2.
+Sun Pharmaceutical (Bangladesh) Limited
+Subsidiary
+3.
+No
+Green Eco Development Centre Limited
+Sun Pharma De Mexico S.A. DE C.V.
+Subsidiary
+75.00%
+No
+4.
+72.50%
+1.
+% Of shares
+held by
+listed entity
+18.4%
+31.9%
+14.4%
+31.4%
+84
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES (INCLUDING JOINT VENTURES)
+Names of holding/subsidiary/associate companies/joint ventures as on March 31, 2022.
+Sr.
+Sun Pharma Japan Ltd.
+Name of the holding/subsidiary/associate companies/joint ventures
+No.
+Indicate whether
+holding/
+Subsidiary/
+Associate/Joint
+Venture
+Does the entity indicated
+at column A, participate in
+the Business Responsibility
+initiatives of the listed
+entity? (Yes/No)*
+Subsidiary
+No
+No
+No
+9.
+Neetnav Real Estate Private Limited
+Subsidiary
+No
+10.
+100.00%
+Realstone Multitrade Private Limited
+100.00%
+11.
+Skisen Labs Private Limited
+Subsidiary
+100.00%
+11.8%
+Subsidiary
+Subsidiary
+Faststone Mercantile Company Private Limited
+8.
+5.
+OOO "Sun Pharmaceutical Industries" Limited
+Subsidiary
+100.00%
+No
+6.
+Sun Pharma De Venezuela, C.A.
+Subsidiary
+100.00%
+No
+7.
+Sun Pharma Laboratories Limited
+Subsidiary
+100.00%
+Yes
+100.00%
+18.6%
+0
+28.4%
+Differently Abled Workers
+4
+Permanent (F)
+6
+6
+66.67
+0
+33.33
+5
+Other than Permanent (G)
+6
+Total workers (F + G)
+6
+6
+100
+0
+12.
+1
+2
+1
+Permanent (D)
+3
+2
+66.67
+1
+33.33
+2
+Other than Permanent (E)
+-
+-
+-
+3
+Total employees (D + E)
+3
+100
+32.8%
+0
+Total
+(A)
+Male
+Permanent Employees
+10.0%
+15.7%
+10.4%
+7.6%
+Female
+12.0%
+Total
+Male
+7.9%
+9.4%
+Female
+18.8%
+Total
+10.0%
+Permanent Workers
+33.0%
+Total
+Participation/Inclusion/Representation of women
+Female
+FY 2019-20
+No. and percentage of Females
+No. (B)
+% (B/A)
+8
+1
+12.5
+2
+0
+0
+Board of Directors
+Key Management Personnel
+Turnover rate for permanent employees and workers (Disclose trends for the past 3 years)
+Turnover Rate
+FY 2021-22
+FY 2020-21
+Male
+Sun Pharma Holdings
+Yes
+100.00%
+No
+32.
+Sun Pharmaceutical Peru S.A.C.
+Subsidiary
+100.00%
+No
+100.00%
+33.
+Subsidiary
+100.00%
+No
+34.
+Taro Pharmaceutical Industries Ltd. (Taro)
+Subsidiary
+Sun Laboratories FZE
+Subsidiary
+Caraco Pharmaceuticals Private Limited
+31.
+28.
+Sun Pharmaceuticals Germany GmbH
+Subsidiary
+100.00%
+No
+29.
+Sun Pharmaceuticals SA (Pty) Ltd
+Subsidiary
+100.00%
+No
+30.
+Sun Pharma Philippines, Inc.
+Subsidiary
+100.00%
+No
+78.48%
+Yes
+35.
+Taro Pharmaceuticals Inc.
+Subsidiary
+78.48%
+No
+40.
+3 Skyline LLC
+Subsidiary
+78.48%
+No
+41.
+One Commerce Drive LLC
+Subsidiary
+78.48%
+No
+42.
+Taro Pharmaceutical Laboratories Inc.
+Taro International Ltd.
+No
+39.
+78.48%
+Subsidiary
+78.48%
+Yes
+36.
+Taro Pharmaceuticals U.S.A., Inc.
+Subsidiary
+78.48%
+No
+37. Taro Pharmaceuticals North America, Inc.
+Subsidiary
+78.48%
+No
+38.
+Taro Pharmaceuticals Europe B.V.
+Subsidiary
+No
+100.00%
+Subsidiary
+Sun Pharmaceutical Industries (Europe) B.V.
+100.00%
+18.
+Sun Pharma France (Formerly Known as Ranbaxy Pharmacie Generiques) Subsidiary
+100.00%
+ZZZZZ ZZZZ
+No
+No
+No
+No
+No
+No
+No
+No
+19.
+Sun Pharmaceutical Industries, Inc.
+Subsidiary
+Subsidiary
+Sun Farmaceutica do Brasil Ltda.
+68.84%
+13.
+Softdeal Pharmaceutical Private Limited (Formerly known as Softdeal
+Trading Company Private Limited)
+Subsidiary
+100.00%
+14.
+Sun Pharma (Netherlands) B.V.
+Subsidiary
+100.00%
+15.
+Foundation for Disease Elimination and Control of India
+Subsidiary
+100.00%
+16.
+Zenotech Laboratories Limited
+Subsidiary
+17.
+Subsidiary
+100.00%
+20.
+24.
+Alkaloida Chemical Company Zrt.
+Subsidiary
+99.99%
+No
+25.
+Sun Pharmaceutical Industries (Australia) Pty Limited
+Subsidiary
+100.00%
+Yes
+26. Aditya Acquisition Company Ltd.
+Subsidiary
+100.00%
+No
+27.
+No
+Differently Abled Employees
+100.00%
+The Taro Development Corporation
+Ranbaxy (Malaysia) SDN. BHD.
+Subsidiary
+95.67%
+Yes
+21.
+Ranbaxy Nigeria Limited
+Subsidiary
+86.16%
+No
+22.
+Chattem Chemicals Inc.
+Subsidiary
+100.00%
+Yes
+23.
+Subsidiary
+% (C/A)
+3
+% (B/A)
+reasonable assurance in the form of an opinion
+(d) Nomination and Remuneration Committee;
+whether, the Company has complied with the
+conditions of Corporate Governance as specified in the
+Listing Regulations.
+88
+We conducted our examination of the Corporate
+Governance Report in accordance with the Guidance
+Note on Reports or Certificates for Special Purposes
+and the Guidance Note on Certification of Corporate
+Governance, both issued by the Institute of Chartered
+Accountants of India ("ICAI"). The Guidance Note on
+Reports or Certificates for Special Purposes requires
+that we comply with the ethical requirements of the
+Code of Ethics issued by ICAI.
+(e)
+Regulations, our responsibility is to provide a
+Stakeholders Relationship Committee;
+Risk Management Committee;
+(g) Corporate Social Responsibility
+Committee meetings;
+(h) Corporate Governance and Ethics
+Committee meetings;
+(i)
+Independent Directors.
+Corporate Overview
+(f)
+Pursuant to the requirements of the Listing
+80
+5.
+The procedures selected depend on the auditor's
+judgement, including the assessment of the risks
+associated in compliance of the Corporate Governance
+Report with the applicable criteria. Summary of
+procedures performed include:
+i.
+ii.
+iii.
+iv.
+Read and understood the information prepared
+by the Company and included in its Corporate
+Governance Report;
+Obtained and verified that the composition of the
+Board of Directors with respect to executive and
+non-executive directors has been met throughout
+the reporting period;
+Obtained and read the Register of Directors as
+on March 31, 2022 and verified that atleast one
+independent woman director was on the Board of
+Directors throughout the year;
+Obtained and read the minutes of the following
+committee meetings / other meetings held
+April 01, 2021 to March 31, 2022:
+(b) Audit Committee;
+(a)
+Board of Directors;
+(c)
+Annual General Meeting (AGM);
+Statutory Reports
+Financial Statements
+Corporate Governance
+8.
+Membership Number: 105754
+UDIN: 22105754AJVRGA7544
+Place of Signature: Mumbai
+Date: May 30, 2022
+Scaling up Specialty. Leading with Care.
+81
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+BUSINESS RESPONSIBILITY AND
+SUSTAINABILITY REPORT
+DIRECTOR'S MESSAGE
+With the vision of 'Reaching people and touching lives
+globally as a leading provider of valued medicines', we at
+Sun Pharmaceutical Industries Limited ("SPIL") continue
+to build our legacy of integrating Environment, Social
+and Governance (ESG) parameters within our value
+creation model. While we continue our relentless focus
+and commitment towards ESG initiatives, we published
+our progress through our maiden Sustainability Report in
+the previous year. We further enhance our transparency
+in ESG disclosures, by voluntarily adopting the Business
+Responsibility and Sustainability Report this year.
+Governance
+To embed ESG parameters within our business growth
+model, we have integrated the principles of sustainability
+within our corporate governance framework. Building
+on our legacy of caring for people, communities and
+the planet, we have adopted a diversified approach
+towards workforce welfare and community upliftment
+with a strong interlinkage to our commitment towards
+enhancing our environment performance.
+Employee workforce and community upliftment
+At Sun Pharma, our strong global workforce of 38,000+
+employees including 22,000+ SPIL employees (including
+contractual) are integral to realising our vision. Our
+employees exhibited strong resoluteness during COVID-19
+pandemic by overcoming the difficulties with an unwavering
+strength. As part of our systemic efforts in creating a
+conducive working environment for employees across
+the functions, we have implemented relevant e-training
+modules, enabling the advancement of skill sets. Through
+the implementation of our inclusive policies, we aim to
+foster a culture of employee wellbeing and resource
+development within a well diversified workforce.
+As a responsible Company striving towards the growth and
+upliftment of community, we implement Corporate Social
+Responsibility (CSR) initiatives to augment our contribution
+towards social development. In FY 2021-22, we contributed
+towards initiatives pertaining to alleviation of the COVID-19
+impact on local communities by enhancing accessibility of
+medicines through mobile healthcare units. Further, we
+enhanced our positive impact on the community through
+rural infrastructure development projects, among others.
+Environment
+As a proud signatory of the India CEO forum on Climate
+Change, we have pledged to build a resilient business
+that factors around the important issue of environment
+protection. It reflects our resolute commitment
+towards climate change action plans in line with the
+recommendations of the Nationally Determined
+Contributions (NDC) and the Paris agreement.
+per Paul Alvares
+Partner
+We have complied with the relevant applicable
+requirements of the Standard on Quality Control (SQC)
+1, Quality Control for Firms that Perform Audits and
+Reviews of Historical Financial Information, and Other
+Assurance and Related Services Engagements.
+ICAI Firm Registration Number: 324982E/E300003
+For S RBC & CO LLP
+V.
+Obtained necessary declarations from the
+directors of the Company;
+vi.
+Obtained and read the policy adopted by the
+Company for related party transactions;
+vii. Obtained the schedule of related party
+transactions during the year and balances at the
+year-end. Obtained and read the minutes of the
+audit committee meeting where in such related
+party transactions have been pre-approved prior
+by the audit committee;
+viii. Performed necessary inquiries with the
+management and also obtained necessary
+specific representations from management.
+The above-mentioned procedures include examining
+evidence supporting the particulars in the Corporate
+Governance Report on a test basis. Further, our
+scope of work under this report did not involve us
+performing audit tests for the purposes of expressing
+an opinion on the fairness or accuracy of any of the
+financial information or the financial statements of the
+Company taken as a whole.
+OPINION
+9.
+Based on the procedures performed by us, as referred
+in paragraph 7 above, and according to the information
+and explanations given to us, we are of the opinion
+that the Company has complied with the conditions
+of Corporate Governance as specified in the Listing
+Regulations, as applicable for the year ended March
+31, 2022, referred to in paragraph 4 above.
+OTHER MATTERS AND RESTRICTION ON USE
+1. This report is neither an assurance as to the future
+viability of the Company nor the efficiency or
+effectiveness with which the management has
+conducted the affairs of the Company.
+2.
+This report is addressed to and provided to the members
+of the Company solely for the purpose of enabling it to
+comply with its obligations under the Listing Regulations
+with reference to compliance with the relevant
+regulations of Corporate Governance and should not
+be used by any other person or for any other purpose.
+Accordingly, we do not accept or assume any liability
+or any duty of care or for any other purpose or to any
+other party to whom it is shown or into whose hands it
+may come without our prior consent in writing. We have
+no responsibility to update this report for events and
+circumstances occurring after the date of this report.
+Chartered Accountants
+7.
+6.
+4.
+Dilip S. Shanghvi
+3
+Sudhir V. Valia
+4
+Sailesh T. Desai
+5
+Kalyanasundaram Subramanian
+6
+Rama Bijapurkar
+7
+Pawan Goenka
+8 Gautam Bhailal Doshi
+Director Identification
+Number (DIN)
+05299764
+00005588
+Date of Appointment
+in the Company
+May 29, 2012
+March 01, 1993
+2
+00005561
+Israel Makov
+No
+Corporate Overview
+Statutory Reports
+Financial Statements
+Corporate Governance
+ANNEXURE 'B' TO CORPORATE GOVERNANCE REPORT
+CERTIFICATE
+(pursuant to Regulation 34(3) and schedule V para C clause (10) (i) of the SEBI (Listing Obligation Disclosure requirement)
+Regulation, 2015)
+To,
+The Members of
+Sun Pharmaceutical Industries Limited
+CIN: L24230GJ1993PLC019050
+Add: SPARC, Tandalja, Vadodara Gujarat - 390012
+We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of the
+Sun Pharmaceutical Industries Limited having CIN L24230GJ1993PLC019050 and having registered office at SPARC,
+Tandalja, Vadodara Gujarat - 390012 (hereinafter referred to as 'the Company'), produced before us by the Company
+for the purpose of issuing this certificate, in accordance with Regulation 34(3) read with Schedule V para - C sub clause
+10(i) of the Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015.
+In our opinion and to the best of our information and according to the verifications (including Directors Identification
+Number (DIN) status at the MCA portal www.mca.gov.in) as considered necessary and explanations furnished to us by
+the Company & its officers, we hereby certify that none of the Directors on the Board of Directors of the Company as
+stated below for the Financial year ending on 31st March 2022 have been debarred or disqualified from being appointed
+or continuing as Directors of the Companies by the Securities Exchange and Board of India, Ministry of Corporate affairs or
+any such other Statutory Authority.
+Sr.
+Name of the Directors
+1
+In cognizance with the growing momentum on climate
+change and sustainability, we have set targets for reducing
+carbon emissions by 35% by 2030 (for scope 1 and scope
+2 emissions), reducing water consumption by 10% by
+2025 and disposing 30 % of hazardous waste through
+co processing by 2025. As part of our target setting
+approach, we have developed a comprehensive road map
+inclusive of the energy, water and waste management
+plan, their corresponding implementation strategy and a
+combined strategy to integrate them within our existing
+growth model.
+January 31,1994
+March 25, 1999
+Place: Vadodara
+Scaling up Specialty. Leading with Care.
+79
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+Independent Auditor's Report on compliance with the conditions of Corporate Governance as per provisions of Chapter IV
+of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
+The Members of
+Sun Pharmaceutical Industries Limited
+1.
+The Corporate Governance Report prepared by Sun
+Pharmaceutical Industries Limited (hereinafter the
+"Company"), contains details as specified in regulations
+17 to 27, clauses (b) to (i) and (t) of sub - regulation (2)
+of regulation 46 and para C, D, and E of Schedule V
+of the Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015, as amended ("the Listing Regulations")
+('Applicable criteria') for the year ended March
+31, 2022 as required by the Company for annual
+submission to the Stock exchange.
+MANAGEMENT'S RESPONSIBILITY
+2.
+3.
+The preparation of the Corporate Governance Report
+is the responsibility of the Management of the
+Company including the preparation and maintenance
+of all relevant supporting records and documents. This
+responsibility also includes the design, implementation
+and maintenance of internal control relevant to
+the preparation and presentation of the Corporate
+Governance Report.
+The Management along with the Board of Directors
+are also responsible for ensuring that the Company
+complies with the conditions of Corporate Governance
+as stipulated in the Listing Regulations, issued by the
+Securities and Exchange Board of India.
+AUDITOR'S RESPONSIBILITY
+Date: May 30, 2022
+00005443
+UDIN: A049008C000380614
+ACS No.: 49008
+00179072
+February 14, 2017
+00001835
+May 21, 2021
+00254502
+May 21, 2021
+00004612
+May 25, 2018
+Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the
+management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate
+is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the
+management has conducted the affairs of the Company.
+For, KJB & CO LLP
+Practising Company Secretaries,
+Firm Unique Identification No. - L2020MH006600
+Peer Review Certificate No. - 934/2020
+Alpeshkumar Panchal
+Partner
+COP No.: 20120
+Through our transition from Business Responsibility Report
+(BRR) to Business Responsibility and Sustainability Report
+(BRSR) this year, we envision to augment our transparency
+on the ESG performance amongst our stakeholders in
+accordance with the principles of SEBI's National Guidelines
+on Responsible Business Conduct (NGRBC). We endeavor
+to improve our sustainability performance by welcoming
+your valuable insights and feedback.
+Regards,
+Kalyanasundaram Subramanian
+Whole-time Director
+Employee
+1
+Permanent (D)
+13,395
+12,338
+92.11
+1,057
+7.89
+2
+Other than Permanent (E)
+2,588
+2,381
+92
+207
+8
+% (C/A)
+Subsidiary
+No. (C)
+No. (B)
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+C.
+A brief on types of customers
+Pharmaceutical distributors and wholesalers are direct customers as part of the distribution chain and patients are the end-
+customers.
+EMPLOYEES:
+Details as at the end of Financial Year
+Employees and workers (including differently abled)
+a.
+Sr.
+Particulars
+No.
+Male
+Female
+Total
+(A)
+% (B/A)
+83
+Total employees (D + E)
+14,719
+Total workers (F + G)
+6,127
+5,942
+96.98
+185
+3.02
+b.
+Differently abled employees and workers:
+Sr.
+Particulars
+No.
+Total
+(A)
+Male
+Female
+No. (B)
+6
+15,983
+3.02
+96.98
+92.1
+1,264
+7.91
+Worker
+4
+Permanent (F)
+5,135
+4,980
+96.98
+155
+3.02
+5
+Other than Permanent (G)
+992
+962
+30
+No. (C)
+Scaling up Specialty. Leading with Care.
+b. What is the contribution of exports as a percentage of the total turnover of the entity?
+PRODUCTS/SERVICES:
+L24230GJ1993PLC019050
+Sun Pharmaceutical Industries Limited
+1993
+SPARC, Tandalja, Vadodara - 390 012, Gujarat
+Sun House, CTS No. 201 B/1, Western Express Highway Goregaon (E),
+Mumbai 400063, Maharashtra, India
+secretarial@sunpharma.com
+(+91 22) 4324 4324
+www.sunpharma.com
+01-April-2021 to 31-March-2022
+Anoop Deshpande (Company Secretary),
+Email - Anoop.Deshpande@sunpharma.com,
+Tel. No. +91-22-4324 4324
+Standalone Basis
+BSE Limited, National Stock Exchange of India Limited
+2,399,334,970
+Details of business activities (accounting for 90% of the turnover):
+Sr.
+Description of the main activity
+Name of the Stock Exchange(s) where shares are listed
+Paid-up Capital (*)
+no.
+Reporting boundary
+Financial year for Reporting
+82
+Corporate Overview
+Statutory Reports
+Section A: General Disclosures
+Financial Statements
+Business Responsibility and Sustainability Report
+DETAILS OF THE LISTED ENTITY:
+Corporate Identity Number (CIN) of the Listed Entity
+Name of the Listed Entity
+Year of incorporation
+Registered office address
+Corporate address
+Email
+Telephone
+Website
+Name and contact details (telephone, email address) of the person
+who may be contacted in case of any queries on the BRSR report
+Over the years, the Company has been focusing on increasing its market reach. Presently the Company is serving the
+market requirements in over 100 countries spanning across the six continents, viz Asia, North America, Europe, Africa,
+South America and Australia. Further, the Company has been undertaking several initiatives to fulfill market needs across
+the globe and continue to grow exports. At present 68 % of total turnover is contributed by the exports of products.
+1.
+Description of business activity
+% of total Turnover
+contributed
+100%
+Number of offices
+2
+14
+Total
+20
+14
+1 The plants include the Company's manufacturing locations and R&D centres.
+Markets served by the entity
+a.
+Number of Locations
+Locations
+National (No. of States)
+International (No. of Countries)
+Number
+Pan-India
+Over 100 countries served across the six continents -
+Asia, North America, Europe, Africa, South America and Australia
+0
+Pharmaceutical
+181
+International
+Manufacturing and marketing of pharmaceutical products
+Products/Services sold by the entity (accounting for 90% of the entity's Turnover):
+% Of turnover of the entity
+100%
+Sr.
+Product/Service
+no.
+1.
+NIC Code
+210
+Manufacture of pharmaceuticals,
+medicinal and chemical products
+OPERATIONS:
+Number of locations where plants and/or operations/offices of the entity are situated:
+Location
+National
+Number of plants
+78.48%
+100.00%
+No
+Financial Statements
+Business Responsibility and Sustainability Report
+Indicate whether
+holding/
+Subsidiary/
+Associate/Joint
+Venture
+% Of shares
+held by
+listed entity
+Does the entity indicated
+at column A, participate in
+the Business Responsibility
+initiatives of the listed
+entity? (Yes/No)*
+100. Medinstill Development LLC
+Associates
+19.22%
+No
+101. ALPS LLC
+Associates
+19.22%
+No
+102. Intact Pharmaceuticals LLC
+Associates
+19.22%
+No
+103. Intact Media LLC (Formerly known as Intact Skin Care LLC)
+Associates
+19.22%
+No
+No.
+104. Intact Solutions LLC
+Name of the holding/subsidiary/associate companies/joint ventures
+Statutory Reports
+39.41%
+No
+95. Vento Power Generation LLP
+96. HRE LLC
+Associates
+40.55%
+No
+Associates
+19.22%
+No
+97.
+HRE II LLC
+98.
+HRE III LLC
+99.
+Dr. Py Institute LLC
+Associates
+Associates
+Associates
+19.99%
+No
+19.99%
+19.22%
+No
+22
+No
+86
+Corporate Overview
+Sr.
+Associates
+Associates
+No
+Remarks
+filed
+during the
+year
+0
+0
+0
+complaints
+pending
+resolution
+at close of
+the year
+0
+Communities Yes, the Company reaches out to 20-25 villages
+located in the peripheral area of its operating
+locations through mobile health care units. Each
+of the mobile health care unit carries a register
+accessible to all the community members to
+address the grievances and queries through
+written complaints. The grievances received
+through the register are addressed by the
+concerned authority members.
+Shareholders Yes, the Company has a grievance redressal
+mechanism for shareholders. The Company
+has appointed Link Intime India Private Limited
+as the Share Transfer Registrars/Agents. The
+Link Intime India Private Limited takes care
+of shareholders' enquiries/queries, requests
+and complaints. The Share Transfer Registrars/
+Agents respond to enquiries/queries, requests
+and complaints within the framework specified/
+defined by SEBI. There is a dedicated email id
+to receive the grievances from shareholders-
+secretarial@sunpharma.com.
+Yes, the employees and workers have access
+to the Company's Global Whistleblower
+mechanism. The Company provides different
+channels of communication for grievances
+through Whistleblower mechanism- email id,
+online portal and written complaints
+Scaling up Specialty. Leading with Care.
+3
+0
+2
+0
+3
+0
+1
+0
+Remarks
+87
+pending
+resolution
+at close of
+the year
+19.22%
+Number of
+complaints
+Number of
+complaints
+filed
+during the
+year
+105. Intact Closed Transfer Connectors LLC
+106. Intact PUR-Needle LLC
+Associates
+Associates
+19.22%
+No
+19.22%
+No
+* Note - While the list provides confirmation for those entities where sustainability reporting initiatives including BRSR have been initiated
+actively, most company level policies and practice essential for SPIL are also extended to subsidiaries and associates to the extent applicable.
+CORPORATE SOCIAL RESPONSIBILITY (CSR) DETAILS
+(i) Whether CSR is applicable as per section 135 of Companies Act, 2013:
+(ii) Turnover (in Million)
+(iii) Net worth as per Companies Act (in Million)
+Yes
+155,185
+201,828
+TRANSPARENCY AND DISCLOSURES COMPLIANCES
+Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business
+Conduct:
+Grievance Redressal Mechanism in Place (Yes/No)
+Financial Year 2021-22
+Financial Year 2020-21
+Stakeholder
+group from
+whom
+Number of
+Number of
+complaint is
+received
+(If yes, then provide web-link for
+grievance redress policy)
+complaints
+Vintage Power Generation LLP
+94.
+No
+78.
+Realstone Infra Limited
+Subsidiary
+100.00%
+No
+79.
+Sun Pharmaceuticals (EZ) Limited
+Subsidiary
+99.99%
+80.
+Sun Pharma (Shanghai) Limited
+Subsidiary
+100.00%
+ཚ8
+81.
+Sun Pharma Japan Technical Operations Limited
+Subsidiary
+100.00%
+82.
+Alchemee, LLC
+Subsidiary
+78.48%
+83.
+The Proactiv Company Holdings, Inc. (Formerly known as Galderma
+Subsidiary
+100.00%
+78.48%
+Subsidiary
+77.
+72.
+Sun Pharmaceutical Medicare Limited
+Subsidiary
+100.00%
+Yes
+73.
+JSC Biosintez
+Subsidiary
+100.00%
+No
+74.
+Sun Pharmaceuticals Holdings USA, Inc.
+Subsidiary
+100.00%
+No
+75.
+Zenotech Inc
+Subsidiary
+68.84%
+No
+76.
+Zenotech Farmaceutica Do Brasil Ltda
+Subsidiary
+45.69%
+No
+Sun Pharma Distributors Limited
+zzzzzzZZZ
+No
+No
+No
+89.
+Generic Solar Power LLP
+Associates
+28.76%
+No
+90.
+Trumpcard Advisors and Finvest LLP
+Associates
+40.61%
+No
+91.
+Tarsier Pharma Ltd (Formerly known as Tarsius Pharma Ltd.)
+Associates
+20.96%
+No
+92.
+WRS Bioproducts Pty Ltd.
+Associates
+12.50%
+No
+93.
+Composite Power Generation LLP
+Associates
+36.90%
+19.99%
+Associates
+Medinstill LLC
+88.
+No
+No
+No
+No
+Holdings, Inc.)
+84.
+Proactiv YK
+Subsidiary
+78.48%
+85.
+The Proactiv Company KK
+Subsidiary
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+78.48%
+The Proactiv Company Corporation
+Subsidiary
+78.48%
+87.
+Artes Biotechnology GmbH
+Joint Venture
+45.00%
+2222
+No
+No
+No
+No
+86.
+Grievance Redressal Mechanism in Place (Yes/No)
+Investors²
+(Other than
+shareholders)
+Employees
+and workers
+Number of
+complaints
+57.
+No
+100.00%
+Subsidiary
+Sun Pharmaceutical Industries S.A.C.
+56.
+No
+100.00%
+Subsidiary
+Sun Pharma Italia srl (Formerly known as Ranbaxy Italia S.P.A.)
+55.
+No
+100.00%
+Subsidiary
+Basics GmbH
+54.
+No
+100.00%
+Subsidiary
+Rexcel Egypt LLC
+53.
+No
+100.00%
+Subsidiary
+Sun Pharma Egypt LLC
+Ranbaxy (Poland) SP. Z O.O.
+52.
+Subsidiary
+No
+the implementation of required
+actions during unprecedented
+situations.
+In case of risk, approach to adapt or
+mitigate
+1. Focusing on stable and larger
+markets.
+2. Strengthening regulatory capacity
+in key markets by actively engaging
+with regulatory agencies and hence
+mitigating risks from external
+sources.
+1. Ensuring business continuity by
+maintaining inventory of products
+and raw materials, having adequate
+local manufacturing capacity,
+conducting disaster recovery and
+business continuity testing for
+critical applications and alternative
+vendor development.
+Implications of the risk or
+opportunity (indicate positive or
+negative implications)
+Positive: Compliance
+with relevant regulatory
+requirements pertaining to
+the ESG domain, reflects
+the Company's commitment
+towards responsible business
+practices.
+Negative: Non-compliance
+with ESG and regulatory
+requirements, may affect the
+Company's image and impact
+its business continuity in the
+long term.
+Positive: Linking the
+Company's key material topics
+with the identified risks and
+their corresponding mitigation
+actions, strengthens the
+Company's growth plan and
+ensures business continuity
+in the long run.
+Financial Year 2021-22
+of disruption.
+60.
+No
+100.00%
+Subsidiary
+AO Ranbaxy
+59.
+Yes
+96.81%
+Subsidiary
+Terapia SA
+58.
+100.00%
+No
+100.00%
+Subsidiary
+No
+100.00%
+Subsidiary
+Sun Pharma East Africa Limited
+47.
+No
+100.00%
+Subsidiary
+Sun Pharma Switzerland Ltd.
+46.
+No
+100.00%
+Subsidiary
+Universal Enterprises Private Limited
+45.
+No
+100.00%
+Subsidiary
+2 Independence Way LLC
+44.
+No
+100.00%
+Subsidiary
+Dusa Pharmaceuticals, Inc.
+43.
+48.
+PI Real Estate Ventures, LLC
+Subsidiary
+100.00%
+Sun Pharma Canada Inc.
+51.
+No
+100.00%
+Subsidiary
+Ranbaxy Farmaceutica Ltda.
+50.
+at column A, participate in
+the Business Responsibility
+initiatives of the listed
+entity? (Yes/No)*
+Does the entity indicated
+listed entity
+% Of shares
+held by
+Venture
+Opportunity: Integration of
+emergency preparedness and
+response within the Company's
+business continuity plan is
+critically important to ensure
+Indicate whether
+holding/
+Subsidiary/
+Associate/Joint
+Sr.
+No.
+க2
+Sun Pharmaceutical Industries Limited | Annual Report 2021-22
+85
+Scaling up Specialty. Leading with Care.
+No
+No
+7 ff ff
+100.00%
+Subsidiary
+Sun Pharma ANZ Pty Ltd
+49.
+Name of the holding/subsidiary/associate companies/joint ventures
+management bolsters the
+Company's business continuity
+plan.
+Positive: Immediate response
+with a strong action plan at
+the time of emergency helps
+alleviate the devastating
+impact on business activities
+and secures the Company
+from a prolonged duration
+Risk: Lack of robust controls
+across the risk management
+system may lead to adverse
+impacts across business
+operations.
+Ohm Laboratories, Inc.
+68.
+No
+100.00%
+Subsidiary
+Ranbaxy (Thailand) Co., Ltd.
+67.
+No
+100.00%
+Subsidiary
+Ranbaxy Inc.
+66.
+Opportunity: Risk Management
+facilitates addressing risks
+linked to business interruption
+from changes in local and global
+geo-political, socioeconomic,
+regulatory or other events.
+Thus, the integration of risk
+No
+100.00%
+Subsidiary
+Sun Pharma Holdings UK Limited (Formerly known as Ranbaxy Holdings
+65.
+No
+100.00%
+Subsidiary
+Sun Pharma UK Limited (Formerly known as Ranbaxy (U.K.) Limited)
+64.
+No
+100.00%
+Subsidiary
+Subsidiary
+100.00%
+69.
+pending
+resolution
+at close of
+the year
+0
+Stakeholder
+group from
+whom
+complaint is
+received
+(If yes, then provide web-link for
+grievance redress policy)
+Number of
+complaints
+filed
+during the
+year
+Customers³
+10
+Number of
+complaints
+No
+100.00%
+Subsidiary
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+71.
+No
+100.00%
+Subsidiary
+Sun Pharmaceuticals Morocco LLC
+70.
+No
+67.50%
+Subsidiary
+Ranbaxy Signature LLC
+Yes
+Sun Pharma Laboratorios, S.L.U. (Formerly known as Laboratorios
+Ranbaxy, S.L.U.)
+(U.K.) Limited)
+No
+1
+0
+2 The Company has a common redressal mechanism for shareholders and investors, which has been captured in the row "Shareholders".
+3 The complaints are pertaining to product quality only.
+OVERVIEW OF THE ENTITY'S MATERIAL RESPONSIBLE BUSINESS CONDUCT ISSUES
+Indicate
+whether
+risk or
+opportunity
+Sr.
+Material
+issues
+No.
+identified
+1
+ESG
+63.
+Risk
+compliance
+2
+Regulatory
+compliance
+3
+Risk
+Risk and
+management Opportunity
+4
+Emergency
+preparedness
+and response
+Opportunity
+Rationale for identifying risk/
+opportunity
+Risk: ESG compliance risk
+is linked to non-adherence
+with standards and guidelines
+of all local and global
+regulatory agencies, focusing
+on pharmacovigilance,
+proprietary, confidentiality
+and other core governance
+standards (For instance,
+CGMP, CGLP, among others).
+0
+0
+Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social
+matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or
+mitigate the risk along-with its financial implications:
+Yes, the grievance redressal mechanism for value
+chain partners is through email id, shared service
+helpdesk and Global Whistleblower mechanism.
+70.00%
+Subsidiary
+Sonke Pharmaceuticals Proprietary Limited
+62.
+No
+100.00%
+Subsidiary
+0
+61.
+Yes
+100.00%
+Subsidiary
+Ranbaxy South Africa (Pty) Ltd
+Ranbaxy Pharmaceuticals (Pty) Ltd
+filed
+during the
+year
+Remarks
+complaint-form/.
+Yes, the customers address their grievances
+through various channels of communication
+such as e-mail, couriers, quality complaints
+form on website - product quality form:
+https://sunpharma.com/product-quality-
+Value chain
+partners
+16
+0
+at close of
+Remarks
+complaints
+pending
+resolution
+Number of
+Financial Year 2020-21
+the year
+Director's Message
+STATUTORY REPORTS
+10 Board of Directors
+12
+Leadership Team
+14-123
+14
+84 Business Responsibility and
+Sustainability Report
+65
+Management Discussion and Analysis
+Board's Report
+Corporate Governance Report
+Chairman and Managing
+36
+Ten Year Financial Highlights
+124-295
+06
+05
+2828
+04 Key Performance Indicators
+02 Sun Pharma at a Glance
+CORPORATE OVERVIEW
+02-13
+What's Inside
+PHARMA
+SUN
+Reaching People. Touching Lives.
+PATIENT FIRST. ALWAYS
+Annual Report 2023-2024
+Sun Pharmaceutical Industries Limited
+22
+FINANCIAL STATEMENTS
+96,848
+202 Consolidated
+Earnings per share
+18.9
+18.9
+29.0
+8.7
+11.1
+15.7
+12.1
+13.6
+35.3
+39.9
+(adjusted for bonus/split) (in *)*
+Earnings per share - Basic (in )*
+18.9
+2,071 2,407 2,399 2,399 2,399 2,399 2,399 2,399 2,399 2,399
+18.9
+8.7
+11.1
+15.7
+12.1
+13.6
+35.3
+39.9
+Earnings per share - Diluted (In *)*
+18.9
+18.9
+29.0
+8.7
+11.1
+15.7
+29.0
+Number of shares (in Million)
+135,488 167,973 150,666 117,716 137,296 159,477 142,965 176,562 199,763 264,906
+124 Standalone
+471
+869
+599
+499
+18,373 22,242 21,459 20,669 19,129
+19,252
+21,028
+21,325 23,077 31,277
+7.2
+8.3
+7.6
+8.6
+6.9
+6.1
+6.5
+5.8
+5.5
+96,848 124,130 149,404 157,111 172,919 175,858 168,322 173,607 206,806 199,663
+143,616 187,212 217,315 238,073 271,424 298,549 308,582 334,029 397,151 410,386
+278,009 327,418 363,997 380,742 411,691 450,245 462,229 477,713 557,555 634,268
+2,071 2,407 2,399 2,399 2,399 2,399 2,399 2,399 2,399 2,399
+Stock information
+Net current assets
+12.1
+Investments
+Property, plant & equipment and other
+intangible assets (at cost)**
+Reserve and surplus
+Equity share capital
+Financial position
+(c) % of sales
+6.7
+Carrying value of property, plant &
+equipment and other intangible assets***
+13.6
+35.3
+39.9
+Sales in the Rest of World (ROW) markets grew by 11.1% to
+67 Billion and contributed 14% to consolidated revenues.
+Growth here was spurred by higher sales in Western Europe
+led by Specialty and the ramp-up in llumya sales in Australia
+and Japan. Odomzo also gained traction in RoW markets.
+Global Specialty Business Performance
+Global Specialty revenues recorded a strong 19.3% growth
+to reach US$ 1,039 Million. Ilumya sales continued to do
+well globally and were up by 21.7% to US$ 580 Million.
+The following products were key contributors to the
+Global Specialty business growth in FY24.
+Select Products from the Marketed Portfolio
+• llumya/llumetri is an IL-23 inhibitor biologic used in the
+treatment of adults with moderate-to-severe plaque
+psoriasis and who are candidates for systemic therapy or
+phototherapy. It is marketed by Sun Pharma directly in
+several markets, including in the US, Canada, Australia,
+Japan and in Western Europe and China through our
+partners. llumetri was included in China's National
+Reimbursement Drug List from January 2024.
+• Winlevi is a first-in-class topical androgen receptor
+inhibitor, approved by the US FDA for the topical
+treatment of acne vulgaris in patients above the age of
+12. Winlevi is the first US FDA-approved acne drug in
+nearly 40 years with a first-in-class mechanism of action.
+Besides the US, where it is already marketed, Winlevi was
+launched in Canada during FY24 and is expected to be
+available in Australia from June 2024.
+• Cequa, indicated for topical ophthalmic use, is the first
+and only US FDA-approved cyclosporine treatment
+delivered with NCELL™ technology. Cequa, which offers
+the highest concentration of cyclosporine for ophthalmic
+use approved by the US FDA, is indicated to increase
+tear production in patients with dry eye, an inflammatory
+disease that afflicts more than 16 Million people in the US.
+• Odomzo is indicated for the treatment of adult patients
+with locally advanced Basal Cell Carcinoma (laBCC) that
+has recurred following surgery or radiation therapy, or
+for those who are not candidates for surgery or radiation
+therapy. Odomzo works by inhibiting a molecular pathway
+known as the hedgehog signalling pathway, which is
+implicated in the origination and development of BCC
+when the pathway malfunctions. Odomzo is available in
+the US and several other international markets.
+• Levulan Kerastick+BLU-U combines a powerful 20%
+aminolevulinic acid HCI (ALA) topical treatment with
+blue-light precision while minimising exposure to the
+deeper tissue. It is the only Photo Dynamic Therapy
+indicated for the treatment of minimally to moderately
+thick actinic keratoses of the face or scalp, or actinic
+keratosis of the upper extremities.
+Research & Development (R&D)
+Our R&D investments stood at 32 Billion, or 6.7% of
+overall sales. During the year, we filed approximately
+250 formulation dossiers globally. In FY24, the Company
+took steps to improve study enrollment for our Global
+Specialty pipeline candidates, including creating a clinical
+organisation within Sun and hiring key talent to lead the
+same. Sun Pharma also continues to scout for external
+R&D assets to strengthen the pipeline. R&D spending
+is expected to increase as clinical trials for Specialty
+products gain traction.
+Patient First. Always.
+8
+Sun Pharma's Specialty R&D pipeline has six candidates
+undergoing clinical trials:
+• Deuruxolitinib's New Drug Application (NDA) was filed
+with USFDA for the treatment of moderate to severe
+alopecia areata during FY24. The FDA has assigned
+Prescription Drug User Fee Act (PDUFA) date of July
+2024 for our application. Open Label Extension studies
+for deuruxolitinib are ongoing.
+Corporate Overview
+Statutory Reports Financial Statements
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Our corporate governance approach rests on our
+commitment to go beyond compliance, increase
+transparency and foster reliability, trust and consistency.
+As a member of the United Nations Global Compact (UNGC),
+we support the 10 principles covering human rights, labour,
+environment and anti-corruption, and we incorporate these
+principles into our business. I am happy to mention that Sun
+Pharmaceutical Industries Limited has been included in the
+S&P Global Sustainability Yearbook 2024, a select group of
+companies with demonstrated strengths in sustainability.
+We continue to integrate principles of sustainability within
+our business through well-defined goals and initiatives,
+coupled with a clear roadmap to achieve these objectives.
+We are committed to addressing the impact of climate
+change through strategic actions to manage and mitigate
+carbon emissions associated with our operations. In FY24,
+we initiated a physical and transition climate risk assessment
+and also carried out a Biodiversity risk assessment for five
+of our manufacturing locations. We have also implemented
+multiple focused initiatives to attract and retain a highly
+diverse and skilled workforce. Our Corporate Social
+Responsibility (CSR) initiatives continue to positively
+impact underprivileged communities and respond to
+their needs across diverse areas.
+Sustainability
+We have pending USFDA compliance issues at three of
+our facilities. These include the import alert at the Halol
+facility and the receipt of non-compliance letter for the
+Mohali facility, both during FY23. In December 2023, FDA
+inspected Sun Pharma's Dadra facility and has subsequently
+determined the inspection classification status of this facility
+as Official Action Indicated (OAI). Besides these three,
+all our facilities remain compliant with global regulatory
+bodies, including the US FDA.
+Adherence to global cGMP standards is a key priority for
+us, and we have a relentless focus on 24x7 compliance
+to ensure continuity of supplies to our customers and
+patients worldwide.
+Our Emerging Markets sales grew by 9.1% to 86 Billion
+and contributed 18% to our consolidated revenues. In local
+currency terms, large markets like Brazil and Romania
+recorded strong double-digit growth. We increased our
+field force in key Emerging Markets this year by 9% to
+over 2,500. This showcases our long-term commitment to
+these geographies.
+CGMP Compliance
+• GLP-1R (Glucagon-Like Peptide-1 Receptor) agonist
+has completed Phase-1 clinical trials. Early clinical data
+demonstrated marked weight loss in single and multiple
+ascending dose studies. The drug was well tolerated, and
+we expect to start enrolling patients for Phase-2 trials
+during the H2CY24.
+• SCD-044 is in Phase-2 clinical trials as a potential oral
+treatment for atopic dermatitis and moderate to severe
+plaque psoriasis. SCD-044 is a selective S1PR1 modulator,
+with a potentially safe cardiac safety profile. Topline
+data for the indication of atopic dermatitis is expected
+to be available during the H2CY24. Topline data for the
+indication of psoriasis is expected to be available during
+the H1CY25.
+• MM-II has completed Phase-2B trial as a potential
+treatment for knee pain in patients with symptomatic
+knee osteoarthritis. Phase-3 for the candidate is expected
+to begin during the H1CY25.
+• Our currently marketed product, llumya, is undergoing
+Phase-3 clinical trials for additional indication of
+treatment of psoriatic arthritis. Topline data for the
+studies is expected during the H2CY25.
+• Our partner product Nidlegy™ is expected to be filed
+with the European Medicines Agency (EMA) for locally
+advanced fully resectable melanoma during H1CY24.
+The candidate's Phase III PIVOTAL trial met the study's
+primary objective, demonstrating statistically significant
+and clinically meaningful improvement in recurrence-free
+survival for patients with locally advanced fully resectable
+melanoma. Nidlegy™ is currently being investigated in
+two Phase III clinical trials for the treatment of locally
+advanced melanoma and in Phase II clinical trials for the
+treatment of high-risk BCC and other non-melanoma skin
+cancers. Sun Pharma is the commercial partner for the
+candidate in EU, Australia and New Zealand.
+Chairman and Managing Director's Message
+We strive to remain disciplined in identifying future
+R&D projects for the US generics market with a focus on
+developing complex products.
+484
+The e year saw us enter into a definitive merger agreement
+with Taro for the acquisition of all its outstanding shares.
+Taro remains a key player in the generic dermatology market,
+even in a challenging environment. As a combined entity, we
+will move firmly forward, leveraging our global capabilities to
+serve the needs of patients and healthcare professionals.
+Revenues in the US grew by 13.4% to 153 Billion and
+accounted for 32% of our consolidated revenues for FY24.
+Specialty sales in the US has continued to gain traction.
+While the generics business faced the negative impact of
+ongoing compliance issues at our Halol and Mohali facilities,
+we were able to partly compensate it through new launches
+and market share gains.
+During FY16, the Company's equity shares increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the
+Company, wherein 0.80 equity share of 1 each of the Company have been allotted to the shareholders of RLL for every 1 share of * 5 each
+held by them.
+The Company has adopted Ind AS accounting standard w.e.f April 1, 2016 with prior period restated from April 1, 2015. Hence, FY16 onwards
+the financials are reported as per Ind-AS and are not strictly comparable with previous years.
+Property, plant, equipment and other intangible assets (at cost) includes Capital work-in-progress & Intangible assets under development.
+*** Carrying value of property, plant, equipment and other intangible assets includes Capital work-in-progress & Intangible assets under development.
+Patient First. Always.
+6
+Corporate Overview
+Statutory Reports
+Financial Statements
+Chairman and Managing Director's Message
+Chairman and Managing Director's Message
+Dilip Shanghvi
+Chairman and Managing Director
+Dear Shareholders,
+Your Company, Sun Pharma, turned 40 this year. Our global
+offices commemorated the milestone in many small but
+thoughtful ways. It was also a moment to reflect on our
+learnings, on what will keep us agile amid expansion, how
+we plan to manage growth and continuity and how we can
+evolve further while keeping our core values intact.
+Age is just a number though, and we feel as if we have
+just started. The contribution of Global Specialty, our new
+growth engine, has continued to increase and has grown
+from 7% of consolidated revenues in FY19 to 18% in FY24.
+Our focus on building out the Specialty business is the
+outcome of a conscious effort to diversify the Company's
+revenue streams. The effort towards expanding Specialty
+also speaks of the business' need to stay agile in an
+ever-changing environment.
+While increasing size has come with healthy cash flows,
+it remains paramount that we constantly evaluate
+structural shifts in our industry for their potential impact.
+Pharmaceuticals is a highly regulated industry across the
+value chain and individual regulatory actions can have
+profound effects on the Company. This is an important
+lesson we have internalised in the first 40 years of our
+existence, and therefore, it has been our endeavour to
+minimise risk in each of our businesses.
+We are deeply committed to improving access to medicine
+in India. Wider availability of medicines and patient
+compliance are critical to ensuring health security for
+India's vast population. As per AIOCD AWACS, our growth
+in India was primarily driven by volume as well as new
+product launches. In contrast, in India, the Pharma market
+growth was driven to a great extent by price increases.
+This year, we are especially pleased to have introduced four
+innovative products in India, either from our global portfolio
+or via licensing. These include Cequa for dry eye disease,
+Tyvalzi for the treatment of ischemic stroke, Rytstat for
+the treatment of anaemia associated with chronic kidney
+disease, and Lyvelsa for slowing down the progression
+of and reducing the risk of kidney failure associated with
+Type-2 diabetes.
+7
+Chairman and Managing Director's Message
+Statutory Reports Financial Statements
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Our subsidiary, Taro, recorded a 9.8% growth in overall
+revenues to US$ 629 Million.
+We undertook field force expansion in India in FY24, adding
+10% to our existing strength. The field force expansion,
+implemented in successive rounds over the last four years,
+has helped us declutter our portfolio and expand our
+presence in Tier II and Tier III towns.
+For FY24, India formulation sales were at 149 Billion,
+up by 9.5%, and accounted for 31% of the overall revenues.
+Our India business growth was ahead of the industry
+growth, driven by our strong brand equity with doctors.
+As per AIOCD AWACS March 2024 data, our market share
+improved to 8.5% on MAT basis compared to 8.3% share
+during the previous period.
+Operational Performance
+Our Specialty R&D spend has continued to increase in
+our bid to strengthen our innovation pipeline. We spent
+US$ 148 Million on Specialty R&D in FY24 vs US$ 65 Million
+in FY20, accounting for 78% of the total R&D increase
+during the period. Our increased R&D guidance for this year
+indicates our intent to advance existing projects and further
+enrich the Specialty pipeline in our core therapy areas.
+This year, we made further investments towards enhancing
+our capabilities in the Global Specialty business. We
+made critical hires in several functions, some of which
+are visible as new additions to the senior management
+team. Specifically, our focus has been to improve our
+in-house clinical development capabilities for which
+we are building a clinical organisation, globalising
+our Specialty assets beyond the US, and deepening
+our business development capabilities.
+During FY24, our global consolidated revenues grew by 10.4%
+to 478 Billion, while EBITDA grew by 11.8% to 130 Billion.
+Adjusted net profit was up by 16.5% to 101 Billion. Our
+return ratios also continued their upward momentum. Our
+cash balance of US$ 2.4 Billion enables us to explore large
+transactions, should a suitable opportunity present itself.
+We also believe that the lessons of the first 40 years have
+positioned us well for the next chapter of the Company's
+growth. Our market share has continued to improve across
+geographies, including India. We remain resolutely focused
+on serving patients and prescribers, a principle that has been
+close to our hearts since inception. Recent examples of this
+customer-centric mindset include broadening our Global
+Specialty pipeline with deuruxolitinib and Nidlegy™ while
+expanding our field force in India and the Emerging Markets.
+As per SMSRC data for MAT February 2024, Sun Pharma
+ranks 1 by prescriptions with 12 different classes of doctors.
+We strengthened our portfolio leadership with 52 new
+product launches in India.
+718
+35,028 18,299 11,919 71,429 79,025 101,431 96,125 128,486 148,243 150,258
+1,178
+25+
+Countries Footprint
+Active Pharmaceutical Ingredients (APIs)
+We manufacture Active Pharmaceutical
+Ingredients (APIs) for complex formulations,
+facilitating vertical integration.
+380+
+Active Pharmaceutical Ingredients (API) Portfolio
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Sun Pharma at a Glance
+3
+Driven by Innovation
+With a consistent focus on innovation, we invested 6.7% of our global revenues into Research and Development (R&D) in
+FY24. Our competitive edge lies in our expertise at developing innovative products, difficult to make technology intensive
+generics, Active Pharmaceutical Ingredients (APIs) and Novel Drug Delivery Systems (NDDS).
+783 1,679 1,819
+6
+3,000+
+6.7%
+Global R&D
+Team
+R&D Spend as a Percentage of
+Total Sales in FY24
+Global and Diversified Revenue Base
+Our revenue stream reflects a dynamic mix of global market presence and diversified business segments, ensuring resilience
+and growth across economies.
+Business-wise Revenue Share (FY24)
+(%)
+0
+United States
+India
+(%)
+32
+31
+Global R&D
+Centres
+Over the Counter (OTC) Medicines
+Largest Generic Pharmaceutical
+Company in the US
+13th
+296-305
+NOTICE
+To view our Annual Report 2023-24 online,
+log on to sunpharma.com/investors-annual-reports-presentations/
+PATIENT FIRST. ALWAYS
+1
+As a leading global specialty generic
+company, we put patients at the heart
+of everything we do. From investing
+in research to developing high-quality
+products, we always strive to increase
+access to medicines that impact patient
+lives. In particular, our focused approach
+towards our Global Specialty portfolio
+in dermatology, ophthalmology and
+onco-derm segments is helping us develop
+and market products that address critical
+unmet needs. Our specialty business,
+which contributes over 18% to our
+global turnover, is poised for substantial
+growth in the coming years and carries
+significant potential to improve patient
+lives worldwide.
+With six New Active Substances in the
+pipeline and upcoming specialty launches,
+we are excited about the progress of our
+innovative medicine business and the
+promise it holds for patients. By forming
+top-tier specialty teams and strengthening
+our pipeline through strategic deals as
+well as in-house development, we are
+focused on improving patient outcomes.
+Everywhere, we are working with patients
+and physicians, listening to them intently
+to find innovative, appropriate solutions.
+And putting patient lives first. Always.
+2
+Corporate Overview
+Statutory Reports Financial Statements
+Sun Pharma at a Glance
+Sun Pharma at a Glance
+Helping Build Healthier Lives Worldwide
+We are a leading global specialty generics company with a presence in specialty, generics
+and consumer healthcare products. Supported by 41 manufacturing facilities, we provide
+high-quality, affordable medicines, trusted by healthcare professionals and patients, to about
+100 countries across the globe.
+Leading
+Global Specialty
+generic company
+~100
+Pharmaceutical Company in India
+Largest
+We offer high-quality generic and branded generic
+medicines globally, covering tablets, capsules,
+injectables, inhalers, ointments, creams, and liquids.
+Generic and Branded Generic Medicines
+Specialty Products in Our Portfolio
+26
+18
+Our specialty portfolio includes innovative medicines in
+dermatology, ophthalmology, and onco-derm segments.
+We have a comprehensive, diverse, and highly complementary portfolio of medicines
+targeting a wide spectrum of chronic and acute treatments.
+Robust Product Portfolio
+Global Employee
+Base
+43,000+
+41
+Manufacturing Sites
+across Six Continents
+Countries
+Reach
+Specialty Medicines
+14
+Our OTC portfolio comprises consumer healthcare
+products, including medications for cough, sore throat,
+vitamins, topical analgesics, cold & flu remedies,
+analgesics, lifestyle products, and digestives.
+5
+اساس
+During FY16, the Company's equity shares increased to 2,407 Million due to the merger of erstwhile Ranbaxy Laboratories Ltd. (RLL) with the
+Company, wherein 0.80 equity share of *1 each of the Company have been allotted to the shareholders of RLL for every 1 share of *5 each held
+by them.
+The Company has adopted Ind AS accounting standard w.e.f April 1, 2016 with prior period restated from April 1, 2015. Hence, FY16 onwards
+the financials are reported as per Ind-AS and are not strictly comparable with previous years.
+Carrying value of property, plant, equipment and other intangible assets includes Capital work-in-progress & Intangible assets under
+development.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(per share)
+634,268
+Corporate Overview
+Ten Year Financial Highlights
+Statutory Reports Financial Statements
+Ten Year Financial Highlights
+(Consolidated)
+5
+Operating performance
+Revenue from operations
+Total income
+Net profit for the year
+(after minority interest)
+Active Pharmaceutical Ingredients (API) and Others
+21,499 22,194 23,676 31,776
+19,550 23,025 23,138 22,489 19,847 19,736
+45,394 45,457 69,644 20,957 26,654 37,649 29,038 32,727 84,736 95,764
+279,397 291,453 322,016 273,282 300,914 334,735 343,337 395,760 445,202 498,510
+273,920 284,870 315,784 264,895 290,659 328,375 334,981 386,545 438,857 484,969
+199,663
+(*Million)
+FY24
+FY19 FY20 FY21 FY22
+FY18
+FY15 FY16 FY17
+(b) Revenue (excluding depreciation)
+(a) Capital
+R&D expenditure
+FY23
+206,806
+Particulars
+168,322
+173,607
+Rest of the World (ROW)
+Patient First. Always.
+**
+FY15
+124,130
+149,404
+4
+Total income
+Key Performance Indicators
+(Consolidated)
+Corporate Overview
+Key Performance Indicators
+Statutory Reports
+Financial Statements
+Emerging Markets
+(* Million)
+الناس النس
+175,858
+157,111
+(adjusted for bonus/split)*
+Earnings per share
+(*Million)
+Carrying value of property, plant &
+equipment and other intangible assets**
+172,919
+Reserve & surplus
+(* Million)
+R&D investment
+(* Million)
+Net profit after minority interest
+(* Million)
+Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental
+and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.
+1.
+Essential Indicators
+PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe
+Leadership Indicators
+Financial Statements
+96
+Corporate Overview
+Patient First. Always.
+Yes, the Company's Global Code of Conduct (GCoC) requires all of its personnel (including members of the Board)
+to refrain from engaging in any activity or having a personal interest that presents a conflict of interest. The Board
+members provide an annual declaration confirming adherence to the GCoC. The Board members give disclosure of
+interest in other persons / entities annually as well as whenever there is a change and the same is placed before the
+Board for its information. The Company has constituted a Corporate Governance and Ethics Committee (CGEC), with
+the objective of monitoring the Company's compliance with the corporate governance guidelines and applicable laws
+and regulations, make recommendations to the Audit Committee and thereby to the Board on all such matters and on
+corrective actions, if any, to be undertaken, review and ensure implementation of ethical standards and practices in
+respect of Corporate Governance by the Company in substance and intent. The CGEC also evaluates and approves all
+related party transactions as per the requirements of the policy on Related Party Transactions as approved by the Board.
+All contracts/ arrangements/transactions entered by the Company during the year under review with the related parties
+were approved by the CGEC and were undertaken in the ordinary course of business and on an arm's length basis.
+Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board?
+(Yes/No) If Yes, provide details of the same.
+Particulars
+1.
+Statutory Reports
+Business Responsibility and Sustainability Report
+R&D
+FY 2022-23 Details of improvements in environmental social impacts
+2.
+98.30%
+22.00%
+Purchases from top 10 trading houses as % of total purchases from
+trading houses
+23.95%
+827
+33.09%
+Concentration of
+Capex
+Sales to dealers / distributors as % of total sales
+100.00% R&D investments pertains to spending on various projects focused on improving
+the environmental and/or social impacts of our products and processes.
+15.60% These projects pertain to improving environment footprint, i.e., energy
+conservation, water conservation, increasing renewable energy adoption, etc.
+20.49%
+FY 2023-24
+100.00%
+b.
+3.
+a.
+Does the entity have procedures in place for sustainable sourcing? (Yes/No)
+0.20%
+85.85%
+Investments (Investments in related parties/Total Investments made)
+FY 2022-23
+87.85%
+Sales
+Number of dealers / distributors to whom sales are made
+Sales to top 10 dealers / distributors as % of total sales to dealers /
+distributors
+126
+79.49%
+124
+78.94%
+FY 2023-24
+FY 2022-23
+Parameter
+Metrics
+Subsidiaries
+Others
+Subsidiaries
+Others
+Share of
+Related Party Sales (Sales to related parties/Total Sales)
+99.73%
+99.67%
+Loans & advances (Loans & advances given to related parties/Total
+loans & advances)
+(RPTs) in
+0.03%
+84.00%
+99.75%
+0.15%
+0.01%
+10.41%
+0.03%
+14.79%
+Purchases (Purchases with related parties/Total Purchases)
+Transactions
+82.51%
+FY 2023-24
+21.22%
+827
+10. Details of Review of NGRBCs by the Company:
+Parameter
+Concentration of
+Purchases
+Opportunity: By aligning CSR
+programs with the needs of the
+community, through impact
+assessments and stakeholder
+engagement sessions, the
+Company focuses on creating an
+environment of mutual trust with
+the community. This will help in
+ensuring a long-term beneficial
+relationship with the community
+and enhance the social
+positioning of the Company.
+2. We also implement robust quality
+control and safety measures
+throughout the research process.
+negative implications)
+Negative: A regular occurrence
+of health and safety issues
+will negatively impact the
+performance of the Company
+concerning worker well-being and
+safety. This will have an effect on
+the Company's reputation, brand
+image, and capacity to draw in
+and retain talent.
+Negative: Failure to comply with
+guidelines and regulations of
+clinical trials and animal testing
+can undermine the efficacy and
+safety of the Company's clinical
+trials. It may also have an adverse
+regulatory/legal impact, lead to
+financial damages and reputation
+loss and have a negative impact
+on participant's health and safety.
+Delays at any stage can also
+prolong the overall timeline for
+This involves monitoring and auditing drug development, leading to
+the conduct of clinical trials, data
+collection, and analysis to ensure
+accuracy, reliability, and compliance
+with relevant standards.
+3. Long term safety studies are
+undertaken for some of our
+innovative specialty products,
+post commercialisation, in order
+to evaluate and measure safety
+parameters over a longer time horizon.
+4. On certain projects we collaborate
+with academic institutions, research
+organisations, and regulatory agencies
+to share knowledge, expertise, and
+resources. Such collaborations also
+enable collective efforts, checks and
+balances to enhance the quality and
+ethical standards of clinical trials and
+animal testing.
+increased costs.
+Positive: The Company's
+perception among the local
+community members is
+enhanced by its contributions
+to the community's upliftment
+through various initiatives and
+partnerships that focus on health,
+Education, rural infrastructure
+development, sanitation, and
+environment conservation
+among others. These efforts also
+help to promote positive social
+outcomes.
+Patient First. Always.
+92
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+SECTION B: MANAGEMENT AND PROCESS DISCLOSURES
+Disclosure Questions
+Policy and management processes
+P1
+relevant regulatory requirements
+governing clinical trials and animal
+testing. We have dedicated teams,
+responsible for ensuring compliance
+with these regulations, which involve
+obtaining necessary approvals,
+permits, and maintaining thorough
+documentation.
+P2
+Risk: Addressing risks associated 1. The Company complies with all
+with clinical trials and animal
+testing is critical to demonstrate
+the Company's commitment to
+responsible research practices,
+especially around the ethical and
+safety related concerns of trials
+on human subjects and animal
+testing. Adverse events related
+to research practices can cause
+delays in product development
+and lead to financial losses and
+negative public perception.
+Our Process Safety Management
+system's guiding principles serve as
+the foundation for both our safety
+procedures and risk assessment
+methodology, which unifies our
+approach to health and safety from
+the perspectives of working conditions
+and risk assessment.
+Social Impact
+through
+Community
+Engagement
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+91
+Indicate
+whether risk
+Financial implications of the risk or
+Rationale for identifying the risk/ In case of risk, approach to adapt or mitigate opportunity (Indicate positive or
+or opportunity opportunity
+Opportunity
+commitment to occupational
+Risk: The Company's
+1.
+health and safety must include
+this crucial element in the
+direction of offering a secure and
+safe workplace.
+2.
+Numerous health and safety
+incidents could result from
+the inefficiency of the current
+health and safety management
+programs.
+3.
+The business maintains a robust
+Environmental Health and Safety
+(EHS) management system, comprising
+regular audits of its EHS procedures,
+both internal and external.
+After potential risks are identified
+and safety incidents are evaluated,
+a thorough corrective action plan is
+established to prevent occurrence of
+similar incidents in the future.
+P3
+P4
+P5
+Yes
+3. Do the enlisted policies extend to your value chain
+partners? (Yes/No)
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+4. Name of the national and international codes/certifications/labels/standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest
+Alliance, Trustea) standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle.
+Principle 1
+National Guidelines on Responsible Business Conduct (NGRBC), United Nations
+Global Compact (UNGC)
+Principle 2
+Principle-3
+Principle 4
+Principle 5
+Principle 6
+Principle 7
+Principle 8
+Principle 9
+5. Specific commitments, goals and targets set by the
+entity with defined timelines, if any.
+Environmental Management System - ISO 14001: 2015, Extended Producer
+Responsibility (EPR) regulations, NGRBC
+Yes
+Yes
+Yes
+Yes
+P6
+P7
+P8
+P9
+1. a. Whether your entity's policy/policies cover each
+principle and its core elements of the NGRBCs.
+(Yes/No)
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Animal Testing
+Yes
+Yes
+b. Has the policy been approved by the Board? (Yes/
+No)
+Yes, the Company has developed comprehensive policies covering these
+principles, some of the policies have been approved by the Board as per relevant
+C.
+Web Link of the Policies, if available
+statutory requirements.
+https://sunpharma.com/policies/
+2. Whether the entity has translated the policy into
+procedures. (Yes/No)
+Yes
+Yes
+Yes
+Yes
+Yes
+Occupational Health and Safety Management Systems - ISO 45001: 2018,
+International Labour Organization (ILO), NGRBC, UNGC
+13.
+12.
+enhancement through continuous
+training and development
+opportunities.
+1. We prioritise building a robust and
+diversified product portfolio through
+improved cross-functional synergies,
+organisational capabilities, project
+management, and governance
+throughout the product lifecycle.
+issues negatively affects society's 2. We enhance our capabilities in both
+access to healthcare and may
+pose obstacles to aligning
+with the Company's vision and
+long-term growth potential.
+3.
+Opportunity: Leveraging our
+robust generic and specialty
+product portfolio alongside our
+global presence, the Company is 4.
+well-equipped to enhance access
+to medicines worldwide and
+meet the increasing demand for
+pharmaceutical products.
+in-licensing and out-licensing of
+products.
+Our focus lies on the development
+and commercialisation of complex
+generics and specialty products,
+among other priorities.
+We emphasise operational excellence
+programs aimed at improving yields,
+ensuring supply chain continuity, and
+maintaining sufficient inventory levels.
+Positive: Enhancing our portfolio
+with innovative products will
+effectively meet the unmet
+healthcare needs of patients
+globally and thereby enhancing
+access to new therapies.
+Furthermore, process innovation
+can lead to increased productivity
+and resource efficiency in our
+operations.
+Positive: Concentrated efforts
+on human capital development
+yield a motivated workforce with
+high retention and satisfaction
+rates. These indicators showcase
+the Company's commitment
+to nurturing a positive work
+environment and underscore a
+proactive approach to workforce
+development, crucial for long-
+term growth and sustainability.
+Negative: Neglecting to meet
+employee expectations could
+lead to adverse long-term effects
+on productivity and hinder the
+Company's growth trajectory.
+Positive: The Company's
+commitment to product
+innovation and research elevates
+brand value through a diverse
+range of accessible and affordable
+products. This strategy enables us
+to address unmet patient needs
+and extends access to low and
+middle-income countries.
+Negative: Long-term brand
+value and growth prospects
+may suffer if the Company's
+products become inaccessible or
+if expansion into new geographic
+markets is hindered.
+7.
+Environmental Risk
+Impact
+Management
+Risk: For the business to have a
+positive environmental impact,
+waste and water management
+are essential.
+To show that the business is
+dedicated to a sustainable
+future and a healthy world,
+concentrated efforts must be
+made to limit waste generation,
+consumption of water, and
+proper disposal.
+1. We continue to identify
+opportunities to minimise any
+adverse environmental effect from
+our operations. We have adopted
+targets for waste management and
+water conservation. Our targets are
+to reduce water consumption by 10%
+and to co-process 30% of hazardous
+waste by 2025.
+2. We closely monitor and track our
+waste management and water
+consumption. Our priorities are to
+increase water efficiency, decrease
+water withdrawal, and increase water
+recovery. For waste management, we
+focus on co-processing hazardous
+waste and increasing recycling and
+reuse within our own operations.
+Negative: Neglecting
+environmental effects can result
+in unfavorable legal, regulatory,
+and financial repercussions, a
+decline in shareholder trust and
+reputation, and finally could lead
+to potential loss of an operating
+license.
+2. We have established a formal
+succession planning program for all
+leadership positions.
+Patient First. Always.
+Risk: Addressing challenges
+related to the product portfolio,
+accessibility, and pricing is crucial
+in the pharmaceutical sector.
+Limited access to medicines
+due to pricing and availability
+Opportunity: The Company's
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+89
+Sr.
+Material issue
+No. identified
+Indicate
+whether risk Rationale for identifying the risk/
+or opportunity opportunity
+(R/O)
+4.
+Innovation
+Opportunity
+Management
+5.
+Human Capital Risk and
+Development Opportunity
+6.
+Access to and
+Risk and
+Affordability of Opportunity
+Medicines
+Opportunity: Investing in
+innovation and technology to
+develop and commercialise
+a robust product portfolio,
+including generics and specialty
+products, enables us to address
+unmet patient needs and
+enhance product accessibility in
+global markets.
+Financial implications of the risk or
+In case of risk, approach to adapt or mitigate opportunity (Indicate positive or
+negative implications)
+Risk: Human Capital
+Development encompasses
+talent management, including
+acquisition, retention, and
+employee well-being. Failure
+to meet or exceed employee
+expectations may negatively
+impact employee retention,
+productivity, and business
+continuity, given our business's
+dependence on the well-being of 3. We prioritise employee skill
+1. We implement various initiatives to
+attract and retain talent, including
+global talent management programs,
+competitive compensation, fostering
+an inclusive work culture, and offering
+employee benefits programs.
+our people.
+emphasis on enhancing employee
+welfare and development
+underscores its commitment to
+human capital development. This
+fosters retention and attracts
+top talent, driving productivity,
+innovation, long-term business
+growth, and value creation for all
+stakeholders.
+90
+Corporate Overview
+Statutory Reports
+3.
+transitional risks associated with our
+operations, we have also undertaken
+climate risk assessments.
+By boosting the proportion of
+biomass, obtaining renewable
+energy, and putting energy efficiency
+programs into place to maximise
+our energy usage, we are constantly
+looking for ways to lessen our
+dependence on fossil fuels in our
+operations.
+1. We are constantly looking for ways to
+reduce supply chain risk, such as by
+assessing potential substitute sources
+for essential or non-replaceable raw
+materials.
+2. The suppliers are required to abide by
+the Company's ESG requirements as
+part of the Supplier Code of Conduct.
+3. The Company has a high focus on
+developing quality products and safety
+of consumers. The quality of raw
+materials for our production process
+is ensured by conducting periodic
+supplier audits.
+rise in the cost of repairing and
+rebuilding affected locations. The
+transition risks brought on by
+climate change may also lead to
+stricter laws in the nations where
+we do business and export,
+which would increase the cost of
+compliance or new technology
+investments. Losing reputation
+and the trust of stakeholders
+can also result from a failure to
+respond to the negative effects of
+climate change.
+Positive: Businesses may be able
+to adapt newer technologies
+and more productive ways of
+producing goods by working
+toward climate change adaptation
+and mitigation.
+Positive: A diverse and inclusive
+workforce that includes members
+of all genders, ages, ethnicities,
+and special abilities fosters
+creative thinking, encourages
+employee engagement, and
+unlocks higher levels of
+efficiency.
+Negative: Long-term commercial
+partnerships with suppliers may
+be impacted if standards related
+to various social, environmental
+and safety aspects are not
+complied with by suppliers,
+leading to loss of business value.
+Non-substitutable and critical raw
+material suppliers may impact
+the business in case of any
+unforeseen disruptions.
+Positive: The Company's
+ability to address supply chain
+disruptions brought on by
+unprecedented circumstances is
+ensured by responsible supply
+chain practices. In addition, the
+Company's adherence to its
+responsible sourcing enhances
+its social and environmental
+performance. Assessing alternate
+suppliers may also help reduce
+risk exposure and provide
+access to previously unexplored
+suppliers for raw materials.
+It may lead to discovery of
+local suppliers, which reduces
+environmental footprint and may
+result in better control over the
+supply chain.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Sr.
+Material issue
+No.
+identified
+(R/O)
+11.
+Occupational
+Risk
+Health and
+Safety
+2. To identify and assess the physical and in a halt to operations and a
+Negative: Our assets could
+be harmed by possible direct
+physical threats to our activities,
+which consequently, can result
+negative implications)
+compared to baseline of 2020.
+Financial Statements
+Business Responsibility and Sustainability Report
+Sr.
+Material issue
+No. identified
+Indicate
+whether risk Rationale for identifying the risk/
+or opportunity opportunity
+(R/O)
+8.
+Climate Change Risk and
+Opportunity
+9.
+Diversity,
+Equity and
+Inclusivity
+10.
+Ethical Clinical Risk
+Trials and
+Sustainable
+Supply Chain
+and Responsible
+Procurement
+Risk and
+Opportunity
+Risk: In the absence of effective
+management of greenhouse gas
+(GHG) emissions, the business
+could be at risk of Physical and
+transition risks associated with
+climate change that could cause
+operations to be disrupted and
+have an impact on business
+continuity.
+Opportunity: Adopting new
+low-carbon technology will help
+build business resilience and
+opportunities for more effective
+manufacturing procedures.
+Opportunity: Fostering and
+providing for a diverse and
+inclusive workforce and
+work culture enhances our
+performance by bringing together
+people with varied experiences,
+knowledge and skills.
+Risk: As a result of the
+Company's dependence on the
+supply chain for critical raw
+materials and last-mile drug
+deliveries, any interruption in
+the supply chain could have
+an effect on the quality of
+the final product and/or the
+business of the Company. There
+is also a risk associated with
+non-substitutable suppliers'
+continuous availability of
+essential raw materials.
+The Company has a policy
+requiring its supply chain
+partners to follow its ESG
+standards; any violation might
+lead to a supply disruption.
+Opportunity: An organisation's
+supply chain has a major impact
+on its capacity to survive.
+Integrating sustainability
+principles within supply chain
+management aids the Company
+in creating a robust supply chain
+and enhancing environmentally
+and socially conscious behavior
+throughout the value chain.
+Financial implications of the risk or
+In case of risk, approach to adapt or mitigate opportunity (Indicate positive or
+1. The company has set a 35% reduction
+target for absolute carbon emissions
+(Scope 1 and Scope 2) by 2030
+Opportunity
+Number of trading houses where purchases are made from
+NGRBC
+Environmental Management System - ISO 14001:2015, NGRBC, Energy
+Management System ISO 50001:2018, UNGC
+ΝΑ
+NA
+NA
+ΝΑ
+Punishment
+NA
+ΝΑ
+ΝΑ
+NA
+Patient First. Always.
+94
+Corporate Overview
+Financial Statements
+Statutory Reports
+Business Responsibility and Sustainability Report
+3.
+4.
+5.
+Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or
+non-monetary action has been appealed.
+The Company is in process of taking appropriate actions.
+Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a
+web-link to the policy.
+Yes, the Company's commitment to ethical business, anti-corruption and anti-bribery has been detailed in the Global
+Code of Conduct. The Company complies with all applicable anti-bribery laws, including the US Foreign Corrupt
+Practices Act (FCPA). As part of the Global Code of Conduct, the anti-bribery clause applies to all employees (whether
+permanent, temporary or contract, directly or through a contractor, manager or full-time consultant) and board
+members. The Company expects its business partners, including suppliers, service providers, agents, channel partners
+(dealers, distributors and others), to comply with the Code and its principles.
+Weblink - Global Code of Conduct: https://sunpharma.com/wp-content/uploads/2023/03/Global-Code-of-Conduct-
+effective-from-30th-March-2023.pdf
+Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement
+agency for the charges of bribery/ corruption:
+Imprisonment
+Particulars
+Has an appeal been preferred?
+(Yes/No)
+Name of the regulatory/ enforcement
+agencies/ judicial institutions
+Penalty of 187,146/-
+Penalty of 1,403,128/-
+1. Demand of Custom duty of
+*4,039,032/- being the amount of IGST
+saved against import effected under
+Advance Licence.
+2. Redemption fine of 2,000,000/- in
+lieu of confiscation of goods.
+3. Penalty equal to the duty confirmed
+i.e. 4,039,032/- with applicable interest
+(Total 10,078,064/- with interest)
+Brief of the Case
+Goods and Services Tax Act, 2017
+assessment for the FY 2017-18 for ITC
+and Tran I credit disallowance.
+Goods and Services Tax Act, 2017
+assessment for the FY 2017-18
+for Non-payment of Liability on
+destruction of Goods.
+Goods and Services Tax Act, 2017
+assessment for the FY 2017-18 for
+Tran I credit disallowance.
+Punjab VAT Act, 2005 assessment
+for Demand on completion of VAT
+Assessment.
+Has an appeal
+been preferred?
+(Yes/No)
+Yes
+No
+No
+No
+Customs Act 1962, assessment for
+delay in realisation of export proceeds
+beyond 9 months from the date of
+exports for FY 2019-20.
+Yes
+Goods and Services Tax Act, 2017
+assessment for Payment of Liability for
+the period FY 2017-18 to FY 2020-21.
+No
+Goods and Services Tax Act, 2017
+assessment for reversal of ITC.
+Yes
+Customs Act 1962, assessment for
+non-compliance - Pre-import condition
+of Notification No.18/2015- Customs
+dated 01.04.2015 applicable for
+Advance License. (Availed benefit of
+IGST Exemption against imports under
+Advance License).
+Yes
+Non-Monetary
+Particulars
+NGRBC
+Principle
+Brief of the Case
+Directors
+KMPS
+Employees
+ΝΑ
+0
+ΝΑ
+Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by
+regulators/law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.
+The penalties imposed and reported herein are subject matter of routine assessment processes where the company
+takes appropriate measures including but not limited to filling of appeals against such orders etc. Penalties reported are
+deemed material as per SEBI Listing regulations however, they do not have any material impact on the Company.
+Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured):
+Particulars
+FY 2023-24
+Number of days of accounts payables
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+170.6
+FY 2022-23
+188.4
+Corporate Overview
+9.
+Openness of business :
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+95
+Metrics
+Purchases from trading houses as % of total purchases
+Details of concentration of purchases and sales with trading houses, dealers and related parties along-with loans and
+advances & investments, with related parties:
+0
+NA
+0
+ΝΑ
+Workers
+FY 2023-24
+FY 2022-23
+0
+0
+0
+0
+0
+0
+0
+0
+Penalty of 400,000/-
+6.
+7.
+8.
+FY 2023-24
+FY 2022-23
+Particulars
+Number
+Remarks
+Number
+Remarks
+Number of complaints received in relation to issues of Conflict of Interest of the Directors
+Number of complaints received in relation to issues of Conflict of Interest of the KMPS
+0
+Details of complaints with regard to conflict of interest:
+United Nations Guiding Principles on Business and Human Rights (UNGP),
+NGRBC, UNGC
+Penalty of 15,663/-
+Penalty of 20,935/-
+Director
+Director
+Periodically/ Need based
+Ongoing basis
+Performance against above policies and follow up action
+Compliance with statutory requirements of relevance to the
+principles, and, rectification of any non-compliances
+11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency? (Yes/No).
+If yes, provide the name of the agency.
+P1
+P2
+P3
+P4
+P5
+P6
+P7
+No. The Company internally reviews the working of the above-mentioned policies
+P8
+P9
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
+PRINCIPLE 1: Businesses should conduct and govern themselves with integrity,
+and in a manner that is Ethical, Transparent and Accountable.
+93
+Essential Indicators
+P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
+1.
+(Annually/ Half yearly/ Quarterly/
+Any other - please specify)
+of the Board/ Any other Committee
+NGRBC
+NGRBC
+Product Quality - ISO 9001: 2015, NGRBC
+Principle 6
+a) To reduce water consumption by 10% by 2025, considering baseline of 2020
+b) To reduce absolute carbon emissions (Scope 1 and 2) by 35% by 2030
+considering the baseline of 2020
+c) To co-process 30% of hazardous waste by 2025
+By implementing several ESG initiatives at different levels, the Company has been
+6. Performance of the entity against the specific
+commitments, goals and targets along-with reasons in able to achieve the following:
+case the same are not met.
+Governance, Leadership and Oversight
+7. Statement by director responsible for the business
+responsibility report, highlighting ESG related
+challenges, targets and achievements (listed entity has
+flexibility regarding the placement of this disclosure)
+8. Details of the highest authority responsible for
+implementation and oversight of the Business
+Responsibility policy (ies).
+9.
+Does the entity have a specified Committee of the
+Board/ Director responsible for decision making on
+sustainability related issues? (Yes / No). If yes, provide
+details.
+Yes, the Company endeavors to implement responsible procurement practices across its supply chain. As a
+measure of improving its impact on the environment and society, the Company encourages local sourcing, which
+improves supply chain resilience, limits various risks including currency risk and reduces supply timelines. Further,
+it encourages local businesses to improve their capabilities. In its endeavor to further ESG practices in the supply
+chain, the Company has introduced ESG parameters in vendor audits intended for better understanding the supply
+chain ESG risks and remediation requirements.
+a) Reduction in overall water consumption by 31.17% in FY 2023-24, as
+compared to baseline of 2020
+b) Reduction in absolute carbon emissions (Scope 1 and Scope 2) by 21.85% in
+FY 2023-24 as compared to the baseline of 2020.
+c) Co-processed 28.34% of hazardous waste in FY2023-24
+Director's Message at the beginning of this Business Responsibility and
+Sustainability Report.
+Name: Mr. Aalok Shanghvi
+Designation: Whole-time Director
+DIN number: 01951829
+Yes, Mr. Aalok Shanghvi is responsible for decisions on sustainability-related
+issues
+Subject for Review
+Indicate whether review was
+undertaken by Director / Committee
+Frequency
+Percentage coverage by training and awareness programmes on any of the Principles during the financial year:
+Segment
+Board of Directors
+P1
+Penalty/
+Fine
+P1
+Penalty/
+Fine
+P1
+Penalty/
+Fine
+P1
+Penalty/
+Fine
+P1
+Penalty/
+Fine
+P1
+Name of the regulatory/
+enforcement agencies/
+judicial institutions
+Asst. Commissioner
+of ST Circle I
+-Bhubaneswar
+Joint Commissioner
+of State Tax
+Secunderabad division
+Dy. Commissioner,
+Circle-A, Jaipur-IV
+State Excise &
+Taxation Officer,
+Mohali-Punjab
+Office of the
+Commissioner of
+Customs, Exports,
+Mumbai.
+Additional
+Commissioner CGST
+& Central Excise,
+Vadodara - I
+Additional
+Commissioner, Central
+GST, Vadodara-l
+Office of the
+Commissioner,
+Custom House,
+Kandla.
+Amount (In)
+Interest of 474,926/- and Penalty of
+* 46,257/-
+Penalty/
+Fine
+P1
+Penalty/
+Fine
+Penalty/
+Fine
+Key Managerial Personnel
+Total number of
+training and awareness
+programmes held
+5
+5
+Employees other than BoD and KMPS
+Workers
+492*
+Topics/principles covered under the training Percentage of persons in respective
+and its impact
+P1, P2, P3, P4, P5, P6, P8
+P1, P2, P3, P4, P5, P6, P8
+Periodic awareness programs were
+organised and conducted on Global Code
+of Conduct (GCOC), Safety Awareness
+Programs, etc.
+Interest of 19,336/- and Penalty of
+* 10,000/-
+* Employee and worker training numbers are provided on a combined basis.
+category covered by awareness
+programmes
+100%
+100%
+100%
+100%
+Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by
+the entity or by directors / KMPs) with regulators/law enforcement agencies/ judicial institutions, in the financial
+year, (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing
+Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity's website):
+Monetary
+P1
+Particulars
+NGRBC
+Principle
+2.
+If yes, what percentage of inputs were sourced sustainably?
+100% of inputs from critical suppliers is sourced sustainably.
+3.
+4.
+1,239
+100
+1,239
+1,239
+100
+460
+100
+460
+100
+460
+100
+460
+460
+100
+779
+100
+779
+100
+779
+100
+100
+460
+779
+Permanent workers
+%
+(B/A)
+Number
+(B)
+%
+(E/A)
+Health insurance
+Accident insurance Maternity Benefits Paternity Benefits
+% Number % Number
+(C/A) (B) (B/A) (E)
+Number
+(C)
+(B/A)
+%
+Number
+(B)
+(A)
+Total
+Category
+Health insurance
+% of workers covered by
+Details of measures for the well-being of workers:
+100
+1,239
+100
+100
+Male
+Female
+779
+Total
+% of employees covered by
+Maternity benefits
+Number %
+(D)
+(D/A)
+Accident insurance
+Number %
+(C) (C/A)
+Permanent employees
+%
+(B/A)
+Health insurance
+Number
+(B)
+Total
+(A)
+Category
+b.
+Details of measures for the well-being of employees:
+1. a.
+Essential Indicators
+PRINCIPLE 3: Businesses should respect and promote the well-being of all employees,
+including those in their value chains
+Business Responsibility and Sustainability Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+98
+Patient First. Always.
+2.15%
+Pharmaceuticals
+Paternity Benefits
+Number %
+(E) (E/A)
+779
+Day Care facilities
+Number
+(F)
+Male
+Female
+Male
+Other than Permanent employees
+100
+100 14,760
+100
+1,433
+100
+100 13,327
+100 1,433
+100 1,433
+100
+100 13,327
+13,327
+100
+100 13,327
+100 1,433
+100 14,760
+14,760 14,760
+Total
+1,433 1,433
+Female
+13,327 13,327
+%
+(F/A)
+4,578 4,578
+100
+4,578
+Deducted and
+deposited with the
+100%
+100%
+25.37%
+100%
+100%
+12.13%
+PF
+Gratuity
+ESI
+No. of workers
+covered as a % of
+total workers
+No. of employees
+covered as a % of
+total employees
+Benefits
+3.
+FY 2023-24
+Details of retirement benefits
+2.
+0.22%
+0.26%
+FY 2022-23
+FY 2023-24
+Particulars
+Spending on measures towards well-being of employees and workers (including permanent and other than
+permanent).
+100
+100 5,125
+Authority
+4,542
+No. of employees
+covered as a % of
+total employees
+No. of workers
+covered as a % of
+total workers
+Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life,
+for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+In accordance with the requirements of the Rights of Persons with Disabilities Act, 2016, the Company's manufacturing
+facilities and corporate offices provide ramps, lifts, and infrastructure for differently abled individuals.
+Are the premises / offices of the entity accessible to differently abled employees and workers, as per the
+requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the
+entity in this regard.
+Accessibility of workplaces
+Yes
+30.08%
+14.52%
+Yes
+Yes
+Yes
+Authority
+(Y/N/N.A.)
+100%
+100%
+100%
+100%
+Yes
+Yes
+(Y/N/N.A.)
+Deducted and
+deposited with the
+FY 2022-23
+100
+583
+100
+100
+4,770
+100
+4,770 4,770
+Total
+100
+192
+100
+192
+100
+192
+100
+192
+192
+100
+4,578
+100
+4,578
+100
+192
+100
+4,578
+100
+100 5,125
+100
+583
+100
+583
+100
+583
+100
+4,542
+Indicate product category
+100
+100
+100 4,542
+100
+4,542 4,542
+583 583
+5,125 5,125
+C.
+Total
+Male
+Female
+Other than Permanent workers
+100
+4,770
+4,542
+Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
+The Company reclaims expired/damaged medicine stock from the stockist as per the Company's standard operating
+procedures and guidelines. The reclaimed medicine stock is then disposed of in a safe manner, as per regulatory guidelines.
+Reclaimed products and their packaging materials as % of total products sold in respective category
+Cost incurred on well-being measures as a % of total revenue from operations of the Company
+0
+Particulars
+FY 2022-23
+FY 2023-24
+Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and
+safely disposed:
+As 100% of the Company's production activities focus on manufacturing pharmaceutical products, there is no
+utilisation of re-used or recycled input material. There is no scope for reusing or recycling any input material due to
+the criticality involved in producing and safely delivering pharmaceutical products from the perspective of consumer
+health, safety, compliance with pertinent regulations, and clinical studies.
+Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing
+industry) or providing services (for service industry).
+2.
+1.
+Leadership Indicators
+97
+Business Responsibility and Sustainability Report
+Financial Statements
+Re-Used
+Statutory Reports
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Yes, the Company is registered as Brand Owner as per the Extended Producer Responsibility (EPR) mandates. The
+Company has appointed a waste management agency to collect the end use plastic/post-consumer plastic waste from
+municipal garbage. The collected EPR target quantities of plastic waste is recycled every year as per the provisions of
+Plastic Waste Management Rules 2022.
+Whether Extended Producer Responsibility (EPR) is applicable to the entity's activities (Yes / No). If yes, whether the
+waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control
+Boards? If not, provide steps taken to address the same.
+The Company has a comprehensive standard operating procedure for handling and safe disposal of expired/
+damaged products returned by the stockist.
+The Company has a comprehensive standard operating procedure for handling and safe disposal of all category
+of hazardous waste as per State specific regulation. The Company also co-processes some portion of its
+hazardous waste.
+E-waste is sent to authorised third party recyclers as per the E-waste management rules 2022.
+The recycling and disposal of the reclaimed plastics (including packaging) is carried out as per the Government
+rules and the provisions of the Plastic Waste Management Rules 2022. We have engaged a waste management
+agency to collect and recycle plastic waste in accordance with regulatory norms.
+The Company has an established system for collection and recycling of the end used plastic waste for the
+products introduced in the domestic market as per the Extended Producer Responsibility (EPR) regulations.
+(Expired Products)
+Other waste
+Hazardous waste
+E-waste
+Corporate Overview
+Plastic
+(including packaging)
+Recycled
+Re-Used
+0
+0
+0
+* This is as per Extended Producer's Responsibility (EPR) compliance requirements
+0
+0
+0
+0
+0
+Other waste
+Hazardous waste
+0
+0
+Safely Disposed
+0
+0
+0
+E-waste
+0
+Safely Disposed
+Recycled
+2,011.52 MT
+0
+Disposing at the end of life
+0
+3,772.00 MT
+0
+Plastics (including packaging) *
+0
+0
+0
+Other than Permanent
+100
+Female
+460
+0
+0
+460
+100
+324
+0
+0
+324
+100
+Workers
+Permanent
+4,770
+0
+Male
+100
+943
+0
+0
+Other than Permanent
+1,239
+0
+0
+1,239
+100
+1,267
+0
+4,578
+0
+100
+Male
+779
+0
+0
+779
+100
+943
+1,267
+0
+0
+0
+0
+OOOOO
+0
+3,812
+100
+152
+0
+0
+4,542
+Male
+0
+4,376
+100
+5,125
+0
+0
+5,125
+4,876
+100
+0
+4,724
+4,770
+100
+4,876
+0
+0
+4,578
+100
+4,724
+ос
+0
+192
+0
+0
+192
+100
+152
+0
+100
+Female
+4,542
+PRINCIPLE 5 Businesses should respect and promote human rights
+0
+Particulars
+Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:
+7.
+0
+0
+0
+0
+Other human rights related issues
+0
+0
+0
+0
+Wages
+0
+0
+0
+0
+0
+4
+0
+Discrimination at workplace
+0
+0
+FY 2023-24
+0
+Child Labour
+0
+0
+0
+0
+Forced labour/Involuntary labour
+0
+2
+FY 2022-23
+4
+All the locations under the entity are assessed on the above parameters, complying with the requirements of the Shops
+and establishments Act for offices, and the Factories Act for plants and R&D centres.
+100%
+100%
+100%
+100%
+100%
+% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
+Wages
+Discrimination at workplace
+Sexual harassment
+Forced/involuntary labour
+Child labour
+Particulars
+10. Assessments for the year:
+Yes, Human Rights requirements have been embedded into the Company's business agreements. The Global Code of
+Conduct highlights the Company's commitment to Human Rights and extends to all employees and business partners
+throughout the value chain. The Company has implemented a dedicated Supplier Code of Conduct Policy capturing
+human rights practices and provisions. Further details may be found at: https://sunpharma.com/policies/.
+107
+Do human rights requirements form part of your business agreements and contracts? (Yes/No)
+Total Complaints reported under Sexual Harassment on of Women at Workplace
+(Prevention, Prohibition and Redressal) Act, 2013 (POSH)
+Complaints on POSH as a % of female employees/workers
+Complaints on POSH upheld
+8.
+0.07
+0.18
+2
+2
+4
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+9.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
+Under the Global Whistleblower Policy, the Company protects the complainant. All complaints are investigated
+carefully in a confidential manner, ensuring the complainant's protection from retaliation. All whistleblowers are
+provided with the necessary safeguards to make Protected Disclosures in good faith in all areas mentioned in the
+Global Code of Conduct, such as business with integrity, responsible corporate citizenship, illegal and unfair labour
+practices, trade practices, and other laws. For the cases pertaining to sexual harassment, the Company's policy on
+prevention, prohibition, and redressal of sexual harassment at the workplace in line with the provisions of the Sexual
+Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder
+ensures strict confidentiality of the investigation procedure and protection of the identity of the complainant.
+100
+Sexual Harassment
+Pending
+Median remuneration/ salary/
+wages of respective category
+Male
+4,578
+13,325
+Employees other than BoD and KMP
+Workers
+2
+8
+Number
+Key Managerial Personnel (KMP)
+Board of Directors (BOD)
+Category
+b.
+Median remuneration/ wages (*)
+a.
+Details of remuneration/salary/ wages
+100
+564
+4,376
+100
+0
+564
+100
+Female
+Number
+583
+0
+583
+100
+564
+0
+0
+0
+Remarks
+8,150,000
+29,937,669
+858,744
+382,980
+0
+1,433
+Filed
+Remarks
+FY 2022-23
+FY 2023-24
+Pending
+Filed
+Particulars
+Number of Complaints on the following made by employees and workers:
+The Company's Human Rights Policy outlines the grievance redressal mechanism through the open channels of
+communication and the Ombudsman channel as per the Global Whistleblower Policy. The Ombudsman ensures the
+confidentiality of the complaints and grievances received through Email: ombudsmanSPIL@sunpharma.com.
+Describe the internal mechanisms in place to redress grievances related to human rights issues.
+Yes, the Company's Chief Human Resources Officer is responsible for monitoring and addressing human rights impacts
+and issues. As part of its Human Rights Policy, the Company expects all key stakeholders to respect and comply with
+the policy principles, as well as all applicable laws and regulations, in all of its operating regions.
+Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused
+or contributed to by the business? (Yes/No)
+6.
+5.
+4.
+Statutory Reports
+Business Responsibility and Sustainability Report
+Financial Statements
+Corporate Overview
+192
+Gross wages paid to females as a % of total wages paid by the entity:
+Particulars
+Gross wages paid to females as a % of total wages
+Female
+Median remuneration/ salary/
+1
+wages of respective category
+691,576
+227,520
+FY 2023-24
+8.44%
+FY 2022-23
+7.62%
+Patient First. Always.
+106
+5,100,000
+1,148
+14,760
+0
+104
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+Channels of communication
+(Email, SMS, Newspaper,
+Pamphlets, Advertisement,
+Community Meetings,
+Notice Board, Website) Other
+Stakeholder
+Group
+Whether
+identified as
+Vulnerable &
+Marginalised
+Group
+(Yes/No)
+Customers
+B2B
+Patient First. Always.
+No
+•
+Email
+• Customer feedback
+Employee focused web
+portal
+sessions
+Employees
+No
+•
+• Email
+• Employee engagement
+surveys
+• In-person meetings
+• Community development programs with a focus on health,
+education, sanitation and infrastructure development
+Community development programs initiated by the Company
+helps in driving a positive impact on the community
+members. The key areas of interest for community are:
+• Agile management process
+• Rural market penetration
+•
+Supply chain continuity
+• Product responsibility
+Responsible supply chain practices are critical to ensure
+business continuity in a sustainable manner. Engagement
+with suppliers enables the Company to identify the key
+material issues impacting the supply chain. The key areas of
+interest for the suppliers are
+• Collaboration
+NGO
+No
+• In-person meetings
+Ongoing
+• Virtual modes such as
+e-mail, telephonically
+Community
+Yes
+• In-person meetings
+Ongoing
+•
+Engagement through
+NGO partners
+•
+Quality standards adherence
+• Timely Supply of Materials
+•
+Timely payments
+• ESG
+Engaging with NGOs facilitates the streamlining of the CSR
+activities undertaken in partnership. The key areas of interest
+for NGO are:
+• Employee volunteering
+• Town-halls
+• Community engagement
+Frequency of
+specify)
+Ongoing
+The Company has designated community members as a vulnerable/marginalised stakeholder group. The Company
+conducts community needs assessment as part of the Corporate Social Responsibility (CSR) programs to determine and
+prioritise the focus areas for community development. The Company has implemented a number of such CSR projects
+in six priority areas, including disaster assistance, rural development, sanitation, and drinking water projects. Refer to
+the Annual Report and the Company's Annual CSR report for more information.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Essential Indicators
+1.
+2.
+3.
+Statutory Reports
+Financial Statements
+14,760
+14,760
+Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/
+marginalised stakeholder groups.
+Permanent
+workers covered (D)
+% (D/C)
+Total (C)
+% (B/A)
+FY 2022-23
+No. of employees/
+No. of employees/
+workers covered (B)
+Total (A)
+Category
+FY 2023-24
+105
+Employees and workers who have been provided training on human rights issues and policy(ies) of the entity:
+Employees
+Yes, material topics related to ESG are identified and prioritised after consultation with the stakeholders. The Company
+then formulates strategies and creates action plans for the identified material topics. The Company's Sustainability
+Report contains non-financial disclosures that are guided by the results and outcomes of the materiality assessment.
+The Company discloses its management strategy, targets/goals, and non-financial performance in the reporting year for
+each of the specified material areas in accordance with national and international norms and standards.
+Whether stakeholder consultation is used to support the identification and management of environmental, and social
+topics (Yes/No). If so, provide details of instances as to how the inputs received from stakeholders on these topics
+were incorporated into policies and activities of the entity.
+At Sun Pharmaceutical Industries Limited, we strongly acknowledge the importance of focused stakeholder engagement
+for timely identification of environment, social and governance issues material to the Company. Emerging from the
+extensive stakeholder engagement exercise undertaken in FY 2020-21, material issues were identified and presented to
+the highest governing member and the Board for their consideration towards guiding strategy and decision making. The
+stakeholder engagement exercise is periodically reviewed as part of the Company's efforts to continuously interact with
+internal and external stakeholder groups for identification of the important material issues influencing them.
+Ongoing
+Senior
+Leadership
+No
+• In-person meetings
+Ongoing
+• Virtual modes such as
+e-mail, telephonically
+Purpose and scope of engagement including
+key topics and concerns raised during
+such engagement
+Customers form a vital part of the Company's stakeholder
+engagement group. The key areas of interest for Customer
+B2B are:
+• Product quality, timely supply and pricing
+Employee well-being and satisfaction is an integral part of
+the Company's growth strategy. Employee engagement
+through various means of communication provides an
+insight into the key action areas for employee well-being and
+growth. The key areas of interest for employees are:
+• Learning and Development
+• Professional Growth
+• Well-being initiatives
+• Employee recognition
+• Fair remuneration
+• Work-life balance
+Senior leadership are the key drivers of the Company's
+sustainable value creation strategy. Senior leadership
+engagement facilitates the interlinkage of business and
+sustainable value creation. The key areas of interest for
+senior leadership are:
+• Sustainable and resilient business operations
+• R&D and innovation
+• Overall Company performance
+Leadership Indicators
+1.
+2.
+3.
+Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social
+topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
+engagement
+(Annually/ Half
+yearly/Quarterly/
+others - please
+0
+• Regulatory compliance
+Transparent communication with the regulators is critical
+Employees
+% (F/D)
+No. (F)
+% (E/D)
+No. (E)
+No. (C) % (C/A)
+No. (B) % (B/A)
+More than
+Minimum Wage
+Equal to
+Minimum Wage
+Total (D)
+More than
+Minimum Wage
+Permanent
+Equal to
+Minimum Wage
+Category
+FY 2022-23
+FY 2023-24
+Details of minimum wages paid to employees and workers:
+100
+9,252
+9,252
+100
+9,895
+9,895
+100
+Total (A)
+Business Responsibility and Sustainability Report
+0
+0
+1,148
+100
+1,433
+0
+0
+1,433
+Female
+100
+13,100
+0
+0
+13,100
+100
+13,327
+0
+0
+13,327
+Male
+100
+14,248
+0
+0
+14,248
+100
+14,760
+4,376
+from the compliance perspective. The key areas of interests
+for the regulators are:
+4,376
+5,125
+• Annual/quarterly
+reports and earning calls
+Attending investor
+conferences
+• Issuing specific event-
+based press releases
+• Investor presentations
+Frequency of
+engagement
+(Annually/ Half
+yearly/Quarterly/
+others please
+specify)
+Quarterly/
+need based
+Regulator
+No
+• In-person meetings
+Need-based
+• Email
+Supplier /
+Vendor/
+11. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
+assessments at Question 10 above.
+Third party
+manufacturer
+• Vendor meets
+• Virtual modes such as
+e-mail, telephonically
+Ongoing
+Purpose and scope of engagement including
+key topics and concerns raised during
+such engagement
+Investors/ Shareholders form an integral part of the
+stakeholder group, influencing the decisions of the Company.
+The key areas of interest for the investors/ shareholders are:
+• Corporate governance
+⚫ ESG
+• Regulatory compliance
+• Responsible supply chain management
+• Product responsibility
+• Cost competitiveness
+• Overall Company performance
+No
+100
+14,248
+14,248
+5,125
+100
+4,876
+4,876
+100
+4,770
+4,770
+Total
+Other than permanent
+Permanent
+Workers
+100
+15,515
+15,515
+100
+15,999
+15,999
+100
+1,267
+1,267
+100
+1,239
+1,239
+Other than permanent
+Total
+100
+100
+Not Applicable
+14,248
+1.
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so,
+provide a web-link to the policy.
+Yes, the Company's Global Code of Conduct demonstrates its commitment to non-discrimination, by offering equal
+opportunity to all its employees regardless of race, colour, religion, sex, national origin, ancestry, age, marital status,
+sexual orientation or disability.
+99
+Web link to the policy - Global Code of Conduct: https://sunpharma.com/wp-content/uploads/2023/03/Global-Code-
+of-Conduct-effective-from-30th-March-2023.pdf
+5.
+Return to work and Retention rates of permanent employees and workers that took parental leave.
+Permanent employees
+Gender
+Corporate Overview
+Male
+Female
+Return to work rate (%)
+92.83%
+Permanent workers
+Retention rate (%) Return to work rate (%)
+100.00%
+92.83%
+Retention rate (%)
+100.00%
+100.00%
+93.34%
+100.00%
+100.00%
+100.00%
+100.00%
+92.86%
+Total
+100.00%
+4.
+In line with the requirements of the ISO 45001:2018 Standard, periodic internal and external audits are
+undertaken to monitor compliance and identify and assess work-related hazards in a timely manner. The Company
+also provides Environment Health and Safety (EHS) training to its personnel. The Company's Process Safety
+Management system supports the implementation of best safety practices. Identification of potential risks are also
+undertaken through designed checklists, Hazard and Operability Studies (HAZOP), Hazard Identification and Risk
+Assessment (HIRA) and other consequence modelling studies.
+Category
+Employees
+No. of fatalities
+Total recordable work-related injuries
+Lost Time Injury Frequency Rate (LTIFR)
+Safety Incident/Number
+11. Details of safety related incidents:
+• Mann Talks - Counselling sessions on mental health
+• Monthly sessions on Health topics with renowned Doctors
+• Lifestyle counselling session
+• Stress management session
+• Eye, dental, and heart screenings
+What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis
+by the entity?
+• Nutrition awareness camp
+Yes, the Company provides its employees and workers with non-occupational medical and healthcare services.
+Moreover, the Company ensures that all of its employees and workers have access to medical insurance. The
+Company designs holistic health programmes that promote healthy lifestyle practices in order to enhance physical
+and mental well-being for all employees and workers. Examples of health programmes and services provided to
+employees include:
+Do the employees/workers of the entity have access to non-occupational medical and healthcare services?
+(Yes/No)
+d.
+101
+Business Responsibility and Sustainability Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Yes, The Company has formalised robust Standard Operating Procedures (SOPs) for timely identification and
+mitigation of work-related hazards and risks. The Company provides occupational health and safety training to all
+workers. The training modules cover methodologies to identify workplace hazards, evaluate the risks involved, as
+well as take appropriate action to reduce them. Employees receive training on how to use emergency equipment
+like fire hydrants, fire-fighting systems, leak and spill control methods, safety alarms, and more during the safety
+and emergency evacuation drills. Additionally, the ability of the staff to handle emergencies is assessed on a
+regular basis. The practical training and online safety modules educate employees about reporting and responding
+to work-related hazards.
+Whether you have processes for workers to report the work-related hazards and to remove themselves from such
+risks. (Y/N)
+• Family welfare camp
+6.
+Is there a mechanism available to receive and redress grievances for the following categories of employees and
+workers? If yes, give details of the mechanism in brief.
+Particulars
+Permanent Employees
+& Workers
+0
+0
+Permanent Workers
+Male
+4,578
+810 17.69
+4,724
+864 18.29
+Female
+192
+88 45.83
+0
+Total
+898 18.83
+152
+4,876
+88 57.89
+952 19.52
+Patient First. Always.
+100
+8. Details of training given to employees and workers:
+9.
+Corporate Overview
+Statutory Reports
+Financial Statements
+4,770
+14,248
+0
+1,148
+Other than Permanent
+Employees & Workers
+Yes/No (If Yes, then give details of the mechanism in brief)
+The Company provides an 'Ask HR' portal for its permanent employees to address any of their concerns or
+questions. Permanent employees and workers can also raise their concerns through RAY, a dedicated grievance
+redressal platform. Additionally, the Company provides a grievance redressal procedure as part of its Global
+Whistleblower Policy and encourages its employees and workers to report any instances of unethical behavior,
+incidents, fraud, or violations. The Company has adopted a policy on prevention, prohibition and redressal of
+sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace
+(Prevention, Prohibition And Redressal) Act, 2013 and the Rules made there under. Employees/workers can file
+any complaints/grievances related to sexual harassment under this mechanism.
+Yes, the non-permanent employees and workers can report their concerns to their respective superiors. The
+grievances are then submitted to the Company for required action and resolution. They can also use the
+Company's Global Whistleblower process to report any instances of unethical behavior, incidents, or violations.
+The Company has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace
+in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
+Redressal) Act, 2013 and the Rules made there under. Non-permanent employees/workers can file any
+complaints/grievances related to sexual harassment under this mechanism.
+7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
+Category
+Total employees/
+workers in respective
+category (A)
+FY 2023-24
+No. of employees/workers in
+respective category, who are
+part of association(s) or Union (B)
+(B/A)
+FY 2022-23
+%
+Total employees/ No. of employees/workers in
+workers in respective respective category, who are
+category (C) part of association(s) or Union (D)
+%
+(D/C)
+Permanent Employees
+Male
+13,327
+Female
+1,433
+Total
+14,760
+0
+13,100
+0
+Workers
+FY 2023-24
+0
+FY 2022-23
+0.067
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Throughout their employment, all employees receive skill-upgradation training from the Company on a regular basis.
+The training programmes address the specific needs of the cadre and key function areas. This may help employees to
+continue working after retirement or termination based on the acquired expertise.
+Does the entity provide transition assistance programs to facilitate continued employability and the management of
+career endings resulting from retirement or termination of employment? (Yes/No)
+0
+0
+0
+4.
+0
+0
+FY 2022-23
+0
+Statutory Reports
+No. of employees/workers that are rehabilitated and
+placed in suitable employment or whose family members
+have been placed in suitable employment
+FY 2023-24
+FY 2022-23
+FY 2023-24
+Total no. of affected employees/workers
+Workers
+Employees
+Particulars
+Provide the number of employees/workers having suffered high consequence work related injury / ill-health/
+fatalities (as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable
+employment or whose family members have been placed in suitable employment:
+The Company requires its value chain partners to abide by the principles of the Company's Supplier Code of
+Conduct and implement responsible business conduct principles in its operating practices and in line with
+contractual obligations.
+Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by
+the value chain partners.
+Yes, the Company extends a compensatory package to all its employees including workers in event of death.
+3.
+0
+0
+Financial Statements
+Business Responsibility and Sustainability Report
+103
+All manufacturing locations of the Company have a formalised Occupational Health and Safety management
+system, aligned to the requirements of ISO 45001:2018 standard, the Company's EHS Management system, and
+legal requirements such as Factories Act, Indian Boilers Act, Environment Protection Act, The Epidemic Disease
+Act, among others. Requisite safety management systems are in place at our office locations. The coverage of the
+Company's Occupational Health and Safety Management System is 100%.
+2,151,878
+2,032,731
+9.77
+(Total water consumption in kilolitres / Revenue from operations in * Million)
+Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)*
+191.95
+223.47
+(Total water consumption in kilolitres / Revenue from operations adjusted for PPP in * Million)
+Water intensity in terms of physical output
+154.95
+158.34
+(Total water consumption in kilolitres / Metric Tonnes production)
+* The revenue from operations has been adjusted for PPP based on the latest PPP conversion factor published for the year 2022 by World
+Bank for India which is 22.88.
+Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
+(Y/N) If yes, name of the external agency
+Yes- DNV Business Assurance India Private Limited
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Investors /
+Shareholders
+Vulnerable &
+Stakeholder
+Group
+Whether
+identified as
+List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.
+The Company actively engages with stakeholders, carefully identifying critical material issues, and is committed to
+effectively addressing stakeholder expectations. As a responsible company, we are steadfast in our commitment to
+cultivating strong and meaningful relationships with stakeholders. The stakeholder engagement process, which is
+based on inclusivity, accountability, and responsibility, helps us to identify the stakeholder groups. The Company has
+defined important stakeholder groups based on those who are impacted as well as those who have a significant impact
+on the business as part of the stakeholder engagement and materiality assessment exercise. Investors/shareholders,
+regulators, suppliers/vendors/third-party manufacturers, non-governmental organisations (NGO), community, customer
+B2B, employees, and senior management are the primary internal and external stakeholder groups defined by the
+Company as part of the engagement process.
+Describe the processes for identifying key stakeholder groups of the entity.
+2.
+1.
+Essential Indicators
+PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
+2.
+Business Responsibility and Sustainability Report
+1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N)
+(B) Workers (Y/N).
+There have been no adverse findings from the assessments undertaken for the reporting year and hence no corrective
+actions were required.
+FY 2022-23
+FY 2023-24
+13. Number of Complaints on the following made by employees and workers:
+12. Describe the measures taken by the entity to ensure a safe and healthy workplace.
+Within its Environment, Health, and Safety (EHS) management system, the Company incorporates the guidelines and
+principles of ISO 45001:2018, OSHA standards, the Factory Act and other State-level regulations. The EHS Policy is
+designed to promote a safe environment for all employees, business partners, contractors, subcontractors, visitors,
+suppliers and the neighboring communities. The Company conducts internal and external audits on a regular basis
+to ensure that its safety practices and procedures are in accordance with the EHS management system and the ISO
+45001:2018 criteria. The Company identifies key areas requiring immediate corrective action as a part of the auditing
+procedures. The safety incidents and hazards are investigated to establish the root cause, after which corrective
+action plans are developed for preventing similar incidents from arising in the future. Furthermore, as part of the EHS
+management system, the Company conducts safety training for all of its employees and workers through various
+modules and safety drill practices. The safety training programs enable the workforce to build a firm foundation in
+terms of their abilities to detect, reduce, and prevent occupational health and safety issues. The Company strives to
+address the healthcare needs of its employees through various health awareness sessions, medical facility services and
+medical insurance benefits. Furthermore, the Company offers voluntary health promotion services such as lifestyle
+counselling, stress management sessions, and nutritional awareness programs, among others, to encourage healthy
+lifestyle practices.
+High consequence work-related injury or ill-health
+(excluding fatalities)
+0
+0
+0
+0
+Employees
+Workers
+0
+Filed during
+0
+0
+0
+Employees
+8
+6
+Workers
+13
+12
+Employees
+0.22
+0.060
+Workers
+Pending resolution
+Remarks
+the year
+15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on
+significant risks / concerns arising from assessments of health & safety practices and working conditions.
+100% (All the sites are assessed on their working conditions by the internal and external audits)
+% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
+100% of the locations are audited internally by the entity. Internal experts conduct the audits in
+order to ensure compliance with safety rules and the identification of important improvement areas.
+68.42% of locations have been assessed on health and safety practices by third party auditors, as
+per requirements of the ISO 45001:2018 standards).
+Working Conditions
+Health and safety practices
+Particulars
+14. Assessments for the year:
+Business Responsibility and Sustainability Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+102
+Patient First. Always.
+0
+0
+0
+0
+Health & Safety
+0
+Remarks
+Filed during Pending resolution
+the year
+at the end of year
+0
+0
+0
+Working Conditions
+at the end of year
+Leadership Indicators
+FY 2023-24
+FY 2022-23
+Category
+820,579
+950,349
+(iii) Third party water
+752,557
+595,511
+578,741
+256,573
+(ii) Groundwater
+(i) Surface water
+Water withdrawal by source (in kilolitres)
+FY 2022-23
+(iv) Seawater/ desalinated water
+FY 2023-24
+Disclosures related to water:
+3.
+None of our Site/ facilities are identified as designated consumer (DCs) under the Performance, Achieve and Trade
+(PAT) Scheme of the Government of India. In the reporting year, the central government in consultation with the
+Bureau of Energy Efficiency has notified and amended designated consumer list and included chemical sector (including
+pharmaceuticals API) having energy consumption of 3,000 metric tonnes of oil equivalent per year or above as
+designated consumer. We are currently in the process of reaching out to the relevant authorities for further guidance.
+Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve
+and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme
+have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
+Yes- DNV Business Assurance India Private Limited
+Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
+(Y/N) If yes, name of the external agency.
+* The revenue from operations has been adjusted for PPP based on the latest PPP conversion factor published for the year 2022 by World
+Bank for India which is 22.88.
+2.
+(Total energy consumption in Giga Joule / Metric Tonnes production)
+249.80
+269.73
+Parameter
+(v) Others
+Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v)
+0
+192
+192
+100
+152
+152
+100
+4,770
+4,770
+100
+4,876
+4,876
+100
+Female
+Total
+10. Health and safety management system:
+a.
+b.
+C.
+8.39
+Water intensity per rupee of turnover
+1,701,011
+Total volume of water consumption (in kilolitres)
+1,802,434
+0
+0
+0
+(Total energy consumed in Giga Joule / Revenue from operations adjusted for PPP in * Million)
+Energy intensity in terms of physical output
+100
+352.55
+Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)*
+Energy consumption through other sources (C)
+Total fuel consumption (B)
+Total Electricity consumption (A)
+From renewable sources
+Parameter
+FY 2022-23
+FY 2023-24
+Details of total energy consumption (in Joules or multiples) and energy intensity:
+1.
+Essential Indicators
+PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment
+Total energy consumed from renewable sources (A+B+C)
+Business Responsibility and Sustainability Report
+Statutory Reports
+Corporate Overview
+108
+Patient First. Always.
+Yes, as per the requirements of the Rights of Persons with Disabilities Act 2016, the Company's manufacturing sites
+and offices have ramps, elevators, and infrastructure for differently abled individuals.
+Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of
+Persons with Disabilities Act, 2016?
+The Company's Human Rights Policy expects all the employees and members of the value chain to abide by its
+principles. As part of the policy statement, the Company outlines that it will undertake human rights due diligence to
+identify the adverse human rights impact of the business on all relevant stakeholders and correspondingly address,
+prevent and mitigate through corrective actions.
+Details of the scope and coverage of any Human rights due-diligence conducted.
+3.
+2.
+Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints.
+In the reporting year, there have been no business process modifications as a result of addressing human rights
+grievances/complaints.
+Financial Statements
+Percentage of total energy from renewable sources
+From non-renewable sources
+Total electricity consumption (D)
+Million)
+(Total energy consumption in Giga Joule / Revenue from operations in
+15.41
+14.60
+Energy intensity per rupee of turnover
+3,206,853 GJ
+2,961,039 GJ
+1,936,161 GJ
+1,621,768 GJ
+1,327,450 GJ
+608,711 GJ
+O GJ
+50,665 GJ
+409,844 GJ
+1,161,258 GJ
+39.60%
+698,069 GJ
+1,270,692 GJ
+1,339,271 GJ
+45.23%
+607,965 GJ
+410,840 GJ
+462,090 GJ
+161,783 GJ
+269,216 GJ
+Total energy consumed (A+B+C+D+E+F)
+Total energy consumed from nonrenewable sources (D+E+F)
+Energy consumption through other sources (F)
+Total fuel consumption (E)
+334.15
+Leadership Indicators
+4,724
+100
+100
+1,433
+100
+1,148
+1,148
+100
+1,148
+100
+100
+14,760
+100
+1,433
+14,248
+100
+14,248
+100
+Workers
+Male
+Female
+Total
+4,578
+4,578
+100
+4,578
+14,248
+1,433
+14,760 14,760
+Total
+Female
+Total
+(A)
+On Health and
+safety measures
+No. (B) % (B/A)
+On Skill
+upgradation
+On Health and safety
+Total
+measures
+On Skill
+upgradation
+(D)
+No. (C)
+% (C/A)
+No. (E)
+% (E/D)
+No. (F)
+% (F/D)
+Employees
+Male
+13,327 13,327
+100
+13,327
+100
+13,100
+13,100
+100
+13,100
+100
+100
+4,724
+4,724
+100
+No. (B)
+FY 2023-24
+% (B/A)
+FY 2022-23
+Total (C)
+No. (D)
+% (D/C)
+Employees
+13,327 13,327
+1,433
+14,760
+100
+13,100
+13,100
+Total (A)
+100
+100
+1,148
+1,148
+100
+14,760
+100
+14,248
+100
+Workers
+4,578
+4,578
+1,433
+Male
+Total
+Female
+4,724
+100
+192
+192
+100
+192
+100
+152
+152
+100
+152
+100
+4,770
+4,770
+100
+4,770
+100
+4,876
+4,876
+100
+4,876
+100
+Details of performance and career development reviews of employees and workers:
+Category
+Male
+4,724
+Whether an occupational health and safety management system has been implemented by the entity? (Yes/No).
+If yes, the coverage of such a system?
+Marginalised
+Group
+(Yes/No)
+No
+Channels of communication
+(Email, SMS, Newspaper,
+Pamphlets, Advertisement,
+Community Meetings,
+Notice Board, Website) Other
+Urban
+National
+National
+National
+State
+National
+National
+State
+2.
+Provide details of corrective action taken or underway on any issues related to anticompetitive conduct by the entity,
+based on adverse orders from regulatory authorities.
+For the reporting year, there were no adverse orders from regulatory authorities against the Company for issues
+pertaining to anticompetitive conduct.
+Leadership Indicators
+1.
+Details of public policy positions advocated by the entity:
+Sr. Public policy advocated
+No.
+1.
+Regulatory Reforms for Pharma sector in India
+FICCI publication
+National
+associations (State/National)
+Reach of trade and industry chambers/
+Gujarat Employers Organisation (GEO)
+Sr.
+Name of the trade and industry chambers/ associations
+No.
+1.
+The Associated Chambers of Commerce of India (ASSOCHAM)
+2.
+The Federation of Indian Chambers of Commerce and Industry (FICCI)
+3.
+2.
+Confederation of Indian Industry (CII)
+Indian Drug Manufacturing Association (IDMA)
+5.
+Federation of Gujarat Industries (FGI)
+6.
+India CEO Forum on Climate Change
+7.
+Indian Pharmaceutical Alliance (IPA)
+8.
+4.
+Regulatory reforms to improve drug
+development process in India
+3.
+Describe the mechanisms to receive and redress grievances of the community.
+The Company engages with and redresses the grievances of all community members through its NGO partners and
+through in-person meetings. Mobile healthcare units visit the peripheral areas of the Company's operations in order
+to engage with local community. Each of the mobile health care units carries a register, which is accessible to all the
+community members to address grievances and queries through written complaints. The grievances received through
+the register are addressed by the Company. All community issues are adequately monitored and resolved on time.
+4.
+Percentage of input material (inputs to total inputs by value) sourced from suppliers:
+Particulars
+Directly sourced from MSME/small producers
+Directly from within India
+FY 2023-24
+13.61%
+FY 2022-23
+Not Applicable
+14.17%
+73.33%
+5.
+Job creation in smaller towns - Disclose wages paid to persons employed (including employees or workers employed
+on a permanent or non-permanent / on contract basis) in the following locations, as % of total wage cost
+Location
+FY 2023-24
+FY 2022-23
+Rural
+3.04%
+82.57%
+List the top 10 trade and industry chambers/ associations (determined based on the total members of such a body)
+the entity is a member of/ affiliated to.
+Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by
+your entity:
+Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the
+current financial year.
+Trade Margin Rationalisation
+Method resorted for such
+advocacy
+Whether
+information available
+in the public domain?
+(Yes/No)
+No
+Indian Pharmaceutical
+Alliance
+Indian Pharmaceutical
+Alliance
+No
+No
+Frequency of Review by Web Link,
+Board (Annually/
+if
+Half yearly/Quarterly /
+Others - please specify)
+In the reporting year, the Company did not undertake any Social Impact Assessments of projects.
+available
+116
+Corporate Overview
+Statutory Reports Financial Statements
+Business Responsibility and Sustainability Report
+PRINCIPLE 8: Businesses should promote inclusive growth and equitable development
+Essential Indicators
+1.
+2.
+3.
+Patient First. Always.
+115
+The Company is a member of 8 trade and industry chambers/associations.
+b.
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+0
+Tertiary treatment Tertiary treatment
+(In house ETP
+treatment, post
+which sent to
+the Municipality
+sewage drain)-
+6,662 KL
+(Inhouse ETP
+treatment, post
+which sent to
+the Municipality
+sewage drain) -
+6,308 KL
+(v) Others
+No treatment
+With treatment - please specify level of treatment
+0
+Total water discharged (in kilolitres)
+0
+No treatment
+Total volume of water consumption (in kilolitres)
+409,785
+502,284
+Water intensity per rupee of turnover
+2.02
+2.41
+(Total Water consumed in kilolitres / Revenue from operations in Million)
+Water discharge by destination and level of treatment (in kilolitres)
+With treatment – please specify level of treatment
+Tertiary Treatment
+(i) Into Surface water
+With treatment - please specify level of treatment
+(ii) Into Groundwater
+No treatment
+With treatment - please specify level of treatment
+(iii) Into Seawater
+No treatment
+With treatment - please specify level of treatment
+(iv) Sent to third-parties
+No treatment
+0
+0
+6,662
+Heat Pump
+Details of the initiative (Web-link, if any,
+may be provided along-with summary)
+Biomass boiler has been installed to reduce GHG emission.
+Coal has been replaced by Biomass briquettes as primary fuel.
+Heat pump is being used to utilise heat of condensation
+to produce hot water. After installing heat pump, steam
+consumption has reduced in hot water system along with
+reducing water consumption in the cooling tower.
+Does the entity have a business continuity and disaster management plan?
+Outcome of the initiative
+Reduction in GHG emissions
+1. Reduction in GHG emissions
+2. Reduction in Water consumption
+3. Reducing energy consumption
+The Company has implemented a comprehensive business continuity and on-site emergency plan across all its
+locations. This plan ensures the Company's ability to adapt and respond effectively to disruptions caused by natural
+disasters or unforeseen events that may impact business operations. Continuous improvement is emphasised through
+the integration of lessons learned from past disruptions, if any, into the existing plans. Additionally, the Company's risk
+management strategy focuses on minimising losses associated with disasters by assessing potential disruptions and
+implementing appropriate mitigation measures.
+2.
+Percentage of value chain partners (by value of business done with such partners) that were assessed for
+environmental impacts.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy,
+should do so in a manner that is responsible and transparent
+Essential Indicators
+1.
+a. Number of affiliations with trade and industry chambers/ associations.
+The Company's Supplier Code of Conduct is developed based on the best practices, standards and guidelines for
+evaluation of suppliers in the pharmaceutical supply chain. The evaluation checklist encompasses various ESG
+parameters to ascertain the adherence with the Company's Supplier Code of Conduct. Assessment of value chain
+partners on the basis of the Company's Supplier Code of Conduct has been initiated for select vendors and will be
+extended to all critical vendors in due course.
+Biomass use at Boilers
+1.
+No
+0
+0
+6,308
+Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
+(Y/N) If yes, name of the external agency.
+Yes- DNV Business Assurance India Private Limited
+Patient First. Always.
+114
+Corporate Overview
+Financial Statements
+Statutory Reports
+Business Responsibility and Sustainability Report
+2.
+3.
+4.
+5.
+With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide
+details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and
+remediation activities.
+The manufacturing facility, Maduranthakam (MKM) is located 3.72 km (West) from the Vedanthangal Bird Sanctuary.
+The facility was functional even before the declaration of Vedanthangal Bird Sanctuary in 1998. The facility has no
+significant direct or indirect impact on the environment. Additionally, the Consent to Operate by the relevant Pollution
+Control Board has also been obtained. It is a Zero Liquid Discharge (ZLD) site, equipped with an effluent treatment
+facility to further direct the treated wastewater for in-house uses.
+If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
+efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the
+same as well as outcome of such initiatives:
+Sr.
+Initiative undertaken
+3.06%
+Semi-urban
+2.84%
+2.63%
+Safe and responsible usage
+Recycling and/or safe disposal
+As a percentage of total turnover
+100.00%
+Note: The Company's products carry information about its responsible and safe usage. Due to the criticality associated
+with the safe and responsible consumption of medicines, the Company displays relevant information on the product
+labels as per the requirements of national and international drug regulatory bodies.
+3.
+Number of consumer complaints in respect of the following:
+Particulars
+Environmental and social parameters relevant to the product
+Received during
+FY 2023-24
+Pending resolution at
+the end of the year
+FY 2022-23
+Received during
+Remarks
+Data Privacy
+0
+0
+the year
+0
+the year
+Pending resolution at
+the end of the year
+Particulars
+The Company has a comprehensive complaint management process to facilitate timely redressal of the product quality
+complaints. Once a product quality complaint is received, either directly by the Company or through a third-party
+entity (appointed to handle product complaints), and registered in the Company's system, it is acknowledged, and a
+preliminary assessment is undertaken. In certain markets, based on local requirements, a Field Alert Report (FAR) may
+be filed for the complaint depending on its nature and severity. Along with the initial evaluation, a follow-up is initiated
+for requesting the complaint sample and any additional information to facilitate the preliminary assessment and the
+investigation. The initial risk assessment and the investigative process proceeds concurrently with the follow-up. A
+remedial action plan is launched after the investigation is completed and the root cause is determined. A complaint
+summary report is also prepared at the same time. The complaint is finally closed after a final risk assessment is
+completed and a response is delivered to the complainant. Any market actions for the impacted product are considered
+and may be communicated with the local regulatory authorities depending on local requirements. The Company has a
+global Pharmacovigilance Policy and mechanism in place, which is supported by a product safety group, committed to
+responding to patient safety concerns and incidents.
+100.00%
+14
+Disaster Response
+15
+Water Conservation
+1,000
+Community
+100.00%
+NA
+Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:
+Patient First. Always.
+Corporate Overview
+Statutory Reports
+Business Responsibility and Sustainability Report
+Financial Statements
+PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner
+Essential Indicators
+1.
+2.
+Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
+118
+Community
+Remarks
+Advertising
+0
+0
+Other
+4.
+Details of instances of product recalls on account of safety issues:
+Particulars
+Number
+Voluntary recalls
+0
+31
+Reason for recall
+The reasons for recall of products were product quality complaint, deviation and out of
+specification/out of trend results for various test.
+1
+As recommended by a regulatory agency due to incorrect strength on product pack.
+5.
+Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available,
+provide a web-link of the policy
+The Company has put into place a risk management policy that includes a framework for identifying internal and
+external risks related to cybersecurity or information hazards. The synopsis of the policy can be accessed at:
+https://sunpharma.com/wp-content/uploads/2024/05/2024-05-21-Risk-Management-Policy-Synopsis.pdf
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Forced recalls
+0
+0
+0
+0
+0
+0
+0
+Cybersecurity
+0
+0
+0
+Unfair Trade Practices
+0
+0
+0
+0
+0
+Restrictive trade Practices
+0
+0
+0
+Delivery of essential services
+Community Drinking Water
+13
+NA
+3.
+4.
+5.
+6.
+Business Responsibility and Sustainability Report
+(a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
+marginalised/vulnerable groups? (Yes/No)
+No, the Company does not have any preferential procurement policy focusing on suppliers from marginalised/
+vulnerable groups.
+(b) From which marginalised/vulnerable groups do you procure?
+117
+Not Applicable
+Not Applicable
+Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the
+current financial year), based on traditional knowledge:
+The Company does not derive any benefits from intellectual properties owned or acquired based on traditional knowledge.
+Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes
+wherein usage of traditional knowledge is involved.
+Not Applicable
+Details of beneficiaries of CSR Projects:
+S.
+No.
+(c) What percentage of total procurement (by value) does it constitute?
+CSR Project
+Financial Statements
+Corporate Overview
+27.39%
+27.97%
+66.78%
+66.34%
+Metropolitan
+Leadership Indicators
+1.
+Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
+(Reference: Question 1 of Essential Indicators above):
+Statutory Reports
+Not Applicable
+Provide the following information on Corporate Social Responsibility (CSR) projects undertaken by your entity in
+designated aspirational districts as identified by government bodies:
+Sr.
+Aspirational District
+State
+Amount Spent in INR
+No.
+For the reporting year, the Company did not undertake any CSR projects in the designated aspirational districts.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+2.
+No. of persons
+benefitted from
+CSR Projects
+% of beneficiaries
+from vulnerable and
+marginalised group
+12
+100.00%
+8
+Promotion of Scientific Medical & Pharma Research Outcomes for Public Health Improvement
+Community
+NA
+9
+SMART Classroom Development Programme
+10,307
+17,207
+100.00%
+Solar Street Lighting Programme
+Community
+100.00%
+11 Rural Infrastructure Development Projects
+Community
+100.00%
+12 Tree Plantation
+Community
+10
+School Development Programme
+7
+100.00%
+Support towards setting-up of Cancer Sanatorium Institute, Wadala, Mumbai
+Elimination of Malnutrition through Action-Research on Moderately and Acute Malnourished
+Children
+Community
+Community
+ΝΑ
+NA
+34
+Mobile Healthcare Unit
+181,392
+100.00%
+4
+Healthcare Infrastructure and Awareness Creation
+Community
+100.00%
+5
+Medicines for Health Activities
+Community
+100.00%
+6
+Anganwadi Development Programme
+2,394
+508,592
+416,447
+Business Responsibility and Sustainability Report
+0
+25
+54
+•
+N2O
+tCO2e
+43
+84
+tCO2e
+tCO2e
+84,644
+tCO2
+237,766
+261,803
+tCO2e / Million
+1.72
+1.85
+8.
+• HFC
+80,989
+Total Scope 2 emissions
+• CH
+26,463
+Patient First. Always.
+110
+Corporate Overview
+Statutory Reports
+Total volume of water withdrawal (in kilolitres)
+Business Responsibility and Sustainability Report
+7.
+Details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity:
+41,179
+Parameter
+Total Scope 1 emissions
+tCO2e
+FY 2023-24
+111,175
+FY 2022-23
+122,306
+(Break-up of the GHG into CO2, CH, NO, HFCs, PFCs, SF, NF 3, if available)
+•
+CO2
+tCO2
+Unit
+(Break-up of the GHG into CO2, CH, NO, HFCs, PFCs, SF 6, NF 3, if available)
+Total Scope 1 and Scope 2 emission intensity per rupee of turnover
+(Total Scope 1 and Scope 2 GHG emissions in Metric Tonnes of CO2 eq/
+Revenue from operations in
+Million)
+• Condensate recovery improvement, resulting in fuel and water reduction at various sites.
+• Hot water temperature reduced to reduce steam requirement.
+• Old energy inefficient motors replaced with energy efficient motors.
+• Replacement of old energy inefficient pump with energy efficient pump in cooling towers.
+• Motion sensor installed at various location to minimise energy wastage.
+• Piping modification for energy efficient distribution.
+• Heat recovery at Multi Effect Evaporator (MEE) and Agitated Thin Film Dryer (ATFD) to preheat boiler feed water.
+• Utilisation of flash steam to reduce further energy requirement at Heat pump.
+• Use of energy efficient dryer to minimise power consumption.
+• Minimising duct leakages in HVAC by regular audit and advance sealing technology.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+111
+Major projects related to utilisation of Renewable energy are listed below:
+• Captive Hybrid (Wind + Solar) power plant has been installed to meet partial power requirement for some of our
+manufacturing facilities at Gujarat.
+We are consistently taking various initiatives to reduce carbon emission and utilising alternate source of energy.
+• Use of variable frequency drives to improve pumping and compressor energy performance.
+• Replacement of existing chiller with energy efficient chillers.
+• Demand side compressed air management to reduce power consumption at air compressors.
+Total Scope 1 and Scope 2 emission intensity per rupee of
+turnover adjusted for Purchasing Power Parity (PPP)*
+(Total Scope 1 and Scope 2 GHG emissions Metric Tonnes of CO2 eq/
+Revenue from operations adjusted for PPP in Million)
+Total Scope 1 and Scope 2 emission intensity in terms of
+physical output
+(Total Scope 1 and Scope 2 GHG emissions in Metric Tonnes of CO2 eq/
+Metric Tonnes production)
+tCO2e / Revenue
+39.38
+42.23
+from operations
+adjusted for PPP
+in Million
+tCO2e / Metric
+Tonnes production
+31.79
+29.92
+* The revenue from operations has been adjusted for PPP based on the latest PPP conversion factor published for the year 2022 by World
+Bank for India which is 22.88.
+Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
+(Y/N) If yes, name of the external agency.
+Yes- DNV Business Assurance India Private Limited.
+Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.
+Conservation of Energy
+The company is committed to continuously improve energy performance and conserve energy in its various operations.
+A dedicated team is continuously working to ensure efficient use of energy. Equipment and plant-wise energy
+consumption is monitored and benchmarking is done at frequent interval, energy gap assessment is carried out, energy
+conservation projects are identified and implemented. The energy conservation projects have resulted into reduction in
+carbon emission and has supported the organisation's decarbonisation journey.
+We have also implemented Energy Management System ISO 50001:2018 at some of our sites to further ensure
+structured and systematic approach towards energy conservation.
+Major energy projects related to reducing GHG emission are listed below:
+• Utilisation of heat pump for hot water generator and reducing steam consumption.
+Yes- DNV Business Assurance India Private Limited
+• Captive solar power plant has been installed to meet partial power requirement of Dewas site.
+Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
+(Y/N) If yes, name of the external agency.
+-
+0
+0
+0
+0
+(iii) To Seawater
+-
+No treatment
+0
+With treatment - please specify level of treatment
+0
+0
+0
+(iv) Sent to third-parties
+No treatment
+With treatment - please specify level of treatment
+Primary Treatment
+Secondary treatment
+0
+With treatment - please specify level of treatment Tertiary Treatment
+16,776
+0
+0
+4.
+5.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+Provide the following details related to water discharged:
+Parameter
+0
+Water discharge by destination and level of treatment (in kilolitres)
+No treatment
+With treatment - please specify level of treatment
+(ii) To Groundwater
+No treatment
+FY 2023-24
+109
+FY 2022-23
+0
+(i) To Surface water
+58,189
+84,647
+60,958
+Unit
+FY 2023-24
+FY 2022-23
+NOX
+SOX
+Particulate matter (PM)
+MT
+173
+Parameter
+126
+106
+121
+MT
+153
+142
+Persistent organic pollutants (POP)
+Volatile organic compounds (VOC)
+Hazardous air pollutants (HAP)
+MT
+Details of air emissions (other than GHG emissions) by the entity:
+6.
+Yes. Within the Company's locations, 14 manufacturing locations have Zero Liquid Discharge (ZLD) mechanism.
+The Company has adopted reduce, reuse, recycle and recharge strategy to conserve water. Process and domestic
+wastewater is treated in a facility consisting of primary, secondary and tertiary treatment with membrane filtration
+(UF/RO). Treated process wastewater is recycled in utilities as boiler feed and cooling tower makeup water. Domestic
+wastewater is treated and used for gardening and flushing.
+0
+Tertiary treatment
+(v) Others
+No treatment
+With treatment - please specify level of treatment
+Total water discharged (in kilolitres)
+Water discharged per rupee of turnover
+(Total Water discharged in kilolitres / Revenue from operations in Million)
+0
+0
+0
+0
+101,423
+119,147
+0.50
+0.57
+Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
+(Y/N) If yes, name of the external agency.
+Yes- DNV Business Assurance India Private Limited
+Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
+implementation.
+Others please specify
+• The Company is using Captive Wind mills to meet its partial power requirement at Maduranthakam (MKM) site.
+Financial Statements
+53,930
+Yes- DNV Business Assurance India Private Limited
+Patient First. Always.
+112
+Corporate Overview
+Financial Statements
+Statutory Reports
+Business Responsibility and Sustainability Report
+10. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by
+your Company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices
+adopted to manage such wastes.
+The Company's waste management plan includes a strategy for waste minimisation, segregation, and safe disposal.
+The Company has implemented a number of measures to reduce manufacturing rejects aligned with its resource
+optimisation and waste minimisation objectives. The Company complies with the requirements of Extended Producer
+Responsibility (EPR) by collecting end-of-use plastic and improving its management of plastic waste. Additionally, the
+Company has adopted initiatives to divert greater amounts of hazardous waste toward co-processing and recycling over
+other disposal mechanisms, such as incineration and landfilling, as part of the hazardous waste disposal mechanism.
+Additionally, the Company has embraced digitalisation to reduce paper consumption.
+Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
+(Y/N) If yes, name of the external agency.
+11. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
+biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental
+approvals / clearances are required, please specify details:
+Sr.
+No.
+1.
+Location of operations/offices
+Maduranthakam (MKM)
+Type of
+Whether the conditions of environmental approval / clearance are being complied with?
+operations
+(Y/N) If no, the reasons thereof and corrective action taken, if any.
+Manufacturing The facility has the "consent to operate" from the concerned Pollution Control Board.
+12. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the
+current financial year
+details of project
+ΕΙΑ
+Notification No.
+The Company has one of its manufacturing locations located in an ecologically sensitive area.
+Date
+* The revenue from operations has been adjusted for PPP based on the latest PPP conversion factor published for the year 2022 by World
+Bank for India which is 22.88.
+0
+7,286
+(iii) Co-processing
+2,602
+2,198
+(iv) Other disposal operations
+0
+Total
+9,179
+0
+0
+10,089
+(i) Incineration
+(ii) Landfilling
+(iii) Other disposal operations
+Total
+8
+0
+0
+0
+8
+Non-hazardous Waste
+agency (Yes/No)
+Whether conducted by Results communicated
+independent external in public Domain
+(Yes/No)
+Relevant Web
+link
+(iii) Water withdrawal, consumption and discharge:
+Parameter
+Water withdrawal by source (in kilolitres)
+(i) Surface water
+(ii) Groundwater
+(iii) Third party water
+(iv) Seawater/ desalinated water
+(v) Others
+(ii) Nature of operations: Manufacturing, R&D center
+FY 2023-24
+7,200
+355,317
+7,200
+447,394
+•
+53,998
+0
+0
+0
+FY 2022-23
+113
+Name of the area: Dadra, Mohali, Silvassa, Toansa, Gurugram
+(i)
+The Company has not undertaken any Environmental Impact Assessments in the reporting year.
+13. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water
+(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, and Environment protection
+act and rules thereunder (Y/N). If not, provide details of all such non-compliances:
+Yes.
+Sr.
+No.
+Specify the law / regulation / guidelines
+which was not complied with
+Provide details of the
+non-compliance
+Any fines/penalties / action taken by
+regulatory agencies such as pollution control
+boards or by courts
+Corrective action
+taken, if any
+Not Applicable
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+Leadership Indicators
+1. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
+For each facility / plant located in areas of water stress, provide the following information:
+5,970
+(ii) Landfilling
+Name and brief
+608
+50
+0
+0
+Other Hazardous waste (G) - spent solvent, spent oil, spent catalysts, distillation residues,
+chemical sludge, process residue, discarded/ off-specification products
+24,432
+25,684
+Other Non-hazardous waste generated (H) - Glass scrap, metal scrap, wooden scrap, storage
+drums, corrugated box, paper waste, boiler ash
+13,708
+76
+16,410
+39,723
+43,231
+Waste intensity per rupee of turnover (Total waste generated in Metric Tonnes / Revenue from
+operations in Million)
+0.20
+0.21
+Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)*
+4.48
+4.75
+Total (A+B+C+D+E+F+ G + H)
+0
+0
+66
+Captive solar rooftop has been installed at Halol, Gurugram, Silvassa, Dadra, and Vadodara sites.
+• Conventional boiler fuels like furnace oil/high speed diesel at most of the locations have been substituted by
+renewable biomass briquettes for steam generation.
+9.
+605
+Parameter
+Total Waste generated (in metric tonnes)
+Plastic waste (A)
+E-waste (B)
+Bio-medical waste (C)
+Construction and demolition waste (D)
+Battery waste (E)
+Radioactive waste (F)
+FY 2023-24
+FY 2022-23
+1,419
+1,015
+11
+6
+76
+(Total waste generated in Metric Tonnes / Revenue from operations adjusted for PPP in * Million)
+Waste intensity in terms of physical output
+3.62
+Details related to waste management by the entity:
+(Total Metric Tonnes Waste / Metric Tonnes production)
+0
+2,484
+443
+14,562
+17,230
+12.16
+2.34
+(ii) Re-used
+459
+0
+(iii) Other recovery operations
+0.51
+0
+Total
+12.67
+For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
+Hazardous Waste
+(i) Incineration
+3.37
+0
+16,787
+2.34
+14,111
+(i) Recycled
+For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes)
+Hazardous Waste
+14,948
+14,111
+(ii) Re-used
+11,619
+0
+(iii) Other recovery operations
+Total
+0
+(i) Recycled
+(ii) Re-used
+(iii) Other recovery operations
+Total
+E-waste
+(i) Recycled
+0
+14,948
+0
+Non-hazardous Waste
+6.
+Reviewed the disclosures under BRSR Core, encompassing the framework for assurance consisting of a set of Key Performance Indicators (KPIs)
+under 9 ESG attributes. The format of BRSR Core used as basis of reasonable level of assurance
+Evaluation of the design and implementation of key systems, processes, and controls for collecting, managing and reporting the BRSR Core
+indicators
+Assessment of operational control and reporting boundaries
+Seek extensive evidence across all relevant areas, ensuring a detailed examination of BRSR Core indicators. Engaged directly with stakeholders to
+gather insights and corroborative evidence for each disclosed indicator.
+Interviews with selected senior managers responsible for management of disclosures and review of selected evidence to support environmental
+KPIs and metrics disclosed in the Report. We were free to choose interviewees and interviewed those with overall responsibility of monitoring,
+data collation and reporting the selected indicators.
+DNV audit team conducted on-site audits for data testing and also, to assess the uniformity in reporting processes and also, quality checks at
+different locations of the Company. Sites for data testing and reporting system checks were selected based on the percentage contribution each
+site makes to the reported indicator, complexity of operations at each location (high/medium/low) and reporting system within the organization.
+Sites selected for audits are listed in Annexure-l.
+DNV Business Assurance India Pvt. Ltd.
+7.
+8.
+DNV teams conducted the:
+•
+Verification of the data consolidation of reported performance disclosures in context to the Principle of Completeness.
+Verification of the consolidated reported performance disclosures in context to the Principle of Completeness as per DNV's VeriSustain™
+protocol (v6.0) for reasonable level verification for the disclosures.
+DNV Headquarters, Veritasveien 1, P.O.Box 300, 1322 Høvik, Norway. Tel: +47 67 57 99 00. www.dnv.com
+DNV-2024-ASR-704619
+Conduct a comprehensive examination of key material aspects within the BRSR Core framework supporting adherence to the assurance based on
+applicable principles plus specified data and information.
+5.
+The assurance does not extend to mapping the Report with reporting frameworks other than those specifically mentioned. Any assessments
+or comparisons with frameworks beyond the specified ones are not considered in this engagement.
+3.
+•
+121
+The assurance scope has the following limitations:
+•
+•
+•
+•
+The assurance engagement considers an uncertainty of ±5% based on materiality threshold for estimation/measurement errors and
+omissions.
+4.
+DNV has not been involved in evaluation or assessment of any financial data/performance of the company. DNV opinion on specific BRSR
+Core indicators (Refer- for total revenue from operations; Principle 3, Question 1(c) of Essential Indicators for Spending on measures towards
+well-being of employees and workers - cost incurred as a % of total revenue of the company; Principle 8, Question 4 of Essential Indicators,
+Principle 1, Question 8 of Essential Indicators and Principle 1, Question 9 of Essential Indicators) relies on the third party audited financial
+reports of the Company. DNV does not take any responsibility of the financial data reported in the audited financial reports of the Company.
+The assessment is limited to data and information within the defined Reporting Period. Any data outside this period is not considered within
+the scope of assurance.
+The assurance does not cover the Company's statements that express opinions, claims, beliefs, aspirations, expectations, aims, or future
+intentions. Additionally, assertions related to Intellectual Property Rights and other competitive issues are beyond the scope of this assurance.
+The assessment does not include a review of the Company's strategy or other related linkages expressed in the Report. These aspects are
+not within the scope of the assurance engagement.
+Aspects of the Report that fall outside the mentioned scope and boundary are not subject to assurance. The assessment is limited to the
+defined parameters.
+The assurance engagement does not include a review of legal compliances. Compliance with legal requirements is not within the scope of
+this assurance, and the Company is responsible for ensuring adherence to relevant laws.
+The assurance engagement is based on the assumption that the data and information provided by the Company are complete, sufficient
+and authentic.
+Assurance process
+As part of the assurance process, a multi-disciplinary team of assurance specialists performed assurance work for selected
+sites of SPIL. We carried out the following activities:
+1.
+2.
+Data outside the operations specified in the assurance boundary is excluded from the assurance, unless explicitly mentioned otherwise in
+this statement.
+Patient First. Always.
+Assurance Team:
+Statutory Reports
+Raman
+Kakaraparthi Venkata Raman
+Assurance Reviewer,
+Sustainability Services,
+Kakaraparthi,
+Venkata Raman
+Date: 2024.06.27
+16:32:14+05'30'
+DNV Business Assurance India Private Limited, India.
+DNV Business Assurance India Private Limited is part of DNV - Business Assurance, a global provider of certification, verification, assessment and training
+services, helping customers to build sustainable business performance. www.dnv.com
+1 DNV Corporate Governance & Code of Conduct - https://www.dnv.com/about/in-brief/corporate-governance.html
+DNV Headquarters, Veritasveien 1, P.O.Box 300, 1322 Høvik, Norway. Tel: +47 67 57 99 00. www.dnv.com
+DNV Business Assurance India Pvt. Ltd.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+DNV-2024-ASR-704619
+Corporate Overview
+Page 4 of 4
+DNV
+Statutory Reports
+We performed a reasonable level of assurance for the BRSR Core reporting based on our assurance methodology DNV's
+VeriSustain TM protocol (v6.0).
+hi, Venkata
+Kakarapart Digitally signed by
+27/06/2024, Mumbai, India.
+Anjana Sharma, Goutam Banik, Varsha Bohiya, Suraiya
+Rahman, Syed Rameez
+Financial Statements
+Business Responsibility and Sustainability Report
+Page 3 of 4
+Conclusion
+DNV
+Reasonable level of Assurance- 9 Core Attributes of BRSR
+Based on our review and procedures followed for reasonable level of assurance, DNV is of the opinion that, in all material
+aspects, the 9 Core Attributes of BRSR (as listed in section 'Scope' of this statement) for FY 2023-24 are reported in accordance
+with reporting requirements outlined in BRSR Core (Annexure I of SEBI Circular dated 12 July 2023).
+Statement of Competence and Independence
+DNV applies its own management standards and compliance policies for quality control, which are based on the principles
+enclosed within ISO IEC 17029:2019 - Conformity assessment - General principles are requirements for validation and
+verification bodies, and accordingly maintains a comprehensive system of quality control including documented policies and
+procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory
+requirements.
+Corporate Overview
+We have complied with the DNV Code of Conduct¹ during the assurance engagement and maintain independence wherever
+required by relevant ethical requirements. This engagement work was carried out by an independent team of sustainability
+assurance professionals. During the reporting period i.e. FY 2023-24, DNV, to the best of its knowledge, was not involved in
+any non-audit/non-assurance work with the Company and its Group entities which could lead to any Conflict of Interest. DNV
+was not involved in the preparation of any statements or data included in the Report except for this Assurance Statement for
+internal use of Sun Pharmaceutical Industries Limited. DNV maintains complete impartiality toward stakeholders interviewed
+during the assurance process. To the best of our knowledge, we did not provide any services to Sun Pharmaceutical Industries
+Limited in the scope of assurance for the reporting period that could compromise the independence or impartiality of our
+work.
+This assurance statement, including our conclusion has been prepared solely for the exclusive use and benefit of
+management of the Company and solely for the purpose for which it is provided. To the fullest extent permitted by law, DNV
+does not assume responsibility to anyone other than the Company for DNV's work or this assurance statement. The usage of
+this assurance statement shall be governed by the terms and conditions of the contract between DNV and SPIL and DNV does
+not accept any liability if this assurance statement is used for an alternative purpose from which it is intended, nor to any third
+party in respect of this assurance statement. No part of this assurance statement shall be reproduced, distributed or
+communicated to a third party without prior written consent.
+For DNV Business Assurance India Private Limited
+Parab,
+Ankita
+Ankita Parab
+Lead Verifier,
+Sustainability Services,
+Digitally signed
+by Parab, Ankita
+Date: 2024.06.27
+15:44:56 +05'30'
+DNV Business Assurance India Private Limited, India.
+Purpose and Restriction on Distribution and Use
+Limitation(s):
+Corporate Overview
+Boundary of our assurance work:
+Channels / platforms where information on products and services of the entity can be accessed (provide web link, if
+available).
+The links to the product list for India and US market are given below:
+India Products: https://sunpharma.com/india-products/
+US Products: https://sunpharma.com/usa/products/
+Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
+The Company complies with pertinent regulatory obligations by informing its stakeholders about the appropriate
+and safe use of its products. Each product packaging/label includes information on safe and responsible usage of
+the product.
+Some of our products now have QR codes and 3D security strips printed on the pack to validate authenticity and
+educate patients. After scanning the QR codes, patients will be taken to a website where they can view the batch
+details, patient education videos, and have access to FAQs.
+Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
+As per the regulatory guidelines, the Company discloses discontinuation of any scheduled formulation in India, by
+issuing a public notice for relevant stakeholders in addition to informing the local regulator at least six months prior
+to the intended date of discontinuation. However, if six months' advance notice is not possible, the notification is
+submitted as soon as practicable thereafter. Furthermore, in certain international markets, based on local regulatory
+requirements, a notification concerning a permanent discontinuance or interruption in manufacturing of a covered
+finished product must be submitted no later than five business days after the discontinuance or interruption in
+manufacturing occurs.
+Does the entity display product information on the product over and above what is mandated as per local laws?
+(Yes/No/Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer
+satisfaction relating to the major products / services of the entity, significant locations of operation of the entity or
+the entity as a whole? (Yes/No)
+The Company displays all relevant information mandated as per local laws regarding its products. As a pharmaceutical
+company, we cannot directly conduct product related surveys with the general public.
+Patient First. Always.
+120
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+Page 1 of 4
+DNV
+4.
+3.
+2.
+1.
+Financial Statements
+Statutory Reports
+Financial Statements
+119
+6.
+Business Responsibility and Sustainability Report
+Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential
+services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action
+taken by regulatory authorities on safety of products / services.
+In FY 2023-24, there were no complaints filed related to advertising, provision of critical services, cyber security,
+consumer data privacy. The Company has implemented corrective & preventive actions for quality complaints and
+product recalls concerning the quality of its products in accordance with each established root cause analysis.
+INDEPENDENT ASSURANCE STATEMENT
+The May 2022 USFDA inspection of Halol facility was classified as Official Action Indicated (OAI). The Halol facility was
+placed under import alert in December 2022 with certain products exempted from import alert. The Company is taking all
+corrective measures necessary to address the observations; and is in communication with the USFDA regarding the same.
+The August 2022 USFDA inspection of Mohali facility was classified as Official Action Indicated (OAI). Subsequently,
+in April 2023, USFDA issued a Consent Decree Correspondence/Non-Compliance letter to the Mohali facility in which
+USFDA directed the Company to take certain corrective actions at the Mohali facility, and certain actions before
+releasing finished drug product batches into the United States. These actions include, but are not limited to, retaining
+an independent cGMP expert to conduct batch certifications of drug products manufactured at the Mohali facility for
+shipment to the U.S. market.
+Provide the following information relating to data breaches:
+7.
+a.
+Number of instances of data breaches - Zero
+b.
+C.
+Percentage of data breaches involving personally identifiable information of customers - Not Applicable
+Impact, if any, of the data breaches - Not Applicable
+Leadership Indicators
+In December 2023, USFDA inspected Sun Pharma's Dadra facility and has subsequently determined the inspection
+classification status of this facility as Official Action Indicated (OAI). The Company is in communication with USFDA to
+resolve the inspectional observations that resulted in OAI status.
+Based on the agreed scope with the Company, the boundary covers the performance of SPIL operations across globe that
+fall under the direct operational control of the Company's Legal structure. The boundary for GHG footprint, water footprint,
+energy footprint and waste management related disclosures include 18 sites, covering the Company's manufacturing
+locations and R&D centers.
+Introduction
+Reporting standard/framework
+•
+Section C: Principle 5- Essential Indicator 3-b, 7
+•
+Section C: Principle 6- Essential Indicator 1, 3, 4, 7, 9
+•
+Section C: Principle 8- Essential Indicator 4,5
+Section C: Principle 9- Essential Indicator 7
+DNV Headquarters, Veritasveien 1, P.O.Box 300, 1322 Høvik, Norway. Tel: +47 67 57 99 00. www.dnv.com
+DNV Business Assurance India Pvt. Ltd.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+DNV-2024-ASR-704619
+Corporate Overview
+Statutory Reports
+Financial Statements
+Business Responsibility and Sustainability Report
+Page 2 of 4
+DNV
+Section C: Principle 3- Essential Indicator 1-c, 11
+•
+Section C: Principle 1- Essential Indicator 8, 9
+•
+The disclosures have been prepared by SPIL in reference to:
+•
+•
+•
+BRSR Core - Framework for assurance and ESG disclosures for value chain as per SEBI (Securities and Exchange Board of
+India) Circular No. SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated July 12, 2023.
+BRSR reporting guidelines (Annexure II) as per SEBI Circular No. SEBI/HO/CFD/CMD-2/P/CIR/2021/562 dated May 10,
+2021, and incorporated Master Circular No. SEBI/HO/CFD/POD2/CIR/P/2023/120 dated July 11, 2023.
+Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard.
+Assurance Methodology/Standard
+This assurance engagement has been carried out in accordance with DNV's VeriSustain™ protocol (V6.0), which is based on
+our professional experience and international assurance practice, and the international standard in Assurance Engagements,
+ISAE 3000 (revised) - Assurance Engagements other than Audits or Reviews of Historical Financial Information. DNV's
+VeriSustain™ Protocol has been developed in accordance with the most widely accepted reporting and assurance standards.
+Apart from DNV's VeriSustain TM protocol (v6.0), DNV team has also followed ISO 14064-3 - Specification with guidance for the
+verification and validation of greenhouse gas statements; ISO 14046 - Environmental management - Water footprint -
+Principles, requirements, and guidelines to evaluate indicators wrt. Greenhouse gases and water disclosures.
+DNV Business Assurance India Private Limited ('DNV'), has been commissioned by Sun Pharmaceutical Industries Limited
+(Corporate Identity Number L24230GJ1993PLC019050, hereafter referred to as 'SPIL' or 'the Company') to undertake an
+independent assurance of the Company's 9 core attribute disclosures (as per Annex I of SEBI circular dated 12 July 2023) in
+Business Responsibility and Sustainability Report (hereafter referred as 'BRSR').
+Intended User
+Level of Assurance
+Reasonable Level of assurance for BRSR 9 Core Attributes (Ref: Annexure I of SEBI circular).
+Responsibilities of the Management of SPIL and of the Assurance Provider
+The Management of SPIL has the sole responsibility for the preparation of the BRSR and is responsible for all information
+disclosed in the BRSR Core and BRSR Report. The company is responsible for maintaining processes and procedures for
+collecting, analyzing and reporting the information and also, ensuring the quality and consistency of the information
+presented in the Report. SPIL is also responsible for ensuring the maintenance and integrity of its website and any referenced
+BRSR disclosures on their website.
+In performing this assurance work, DNV's responsibility is to the Management of the Company; however, this statement
+represents our independent opinion and is intended to inform the outcome of the assurance to the stakeholders of the
+Company.
+Scope, Boundary and Limitations
+Scope
+The scope of our engagement includes independent reasonable level of assurance of '9 Core attributes of BRSR' (Ref:
+Annexure I of SEBI Circular) for Financial Year (FY) 2023-24 as listed below-
+The intended user of this assurance statement is the Management of Sun Pharmaceutical Industries Limited.
+Business Responsibility and Sustainability Report
+122
+1.
+2.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone
+127
+We communicate with those charged with governance
+regarding, among other matters, the planned scope and
+timing of the audit and significant audit findings, including
+any significant deficiencies in internal control that we
+identify during our audit.
+We also provide those charged with governance with a
+statement that we have complied with relevant ethical
+requirements regarding independence, and to communicate
+with them all relationships and other matters that may
+reasonably be thought to bear on our independence, and
+where applicable, related safeguards.
+From the matters communicated with those charged with
+governance, we determine those matters that were of most
+significance in the audit of the standalone Ind AS financial
+statements for the financial year ended March 31, 2024
+and are therefore the key audit matters. We describe these
+matters in our auditor's report unless law or regulation
+precludes public disclosure about the matter or when, in
+extremely rare circumstances, we determine that a matter
+should not be communicated in our report because the
+adverse consequences of doing so would reasonably
+be expected to outweigh the public interest benefits of
+such communication.
+Report on Other Legal and Regulatory Requirements
+1.
+2.
+As required by the Companies (Auditor's Report) Order,
+2020 ("the Order"), issued by the Central Government
+of India in terms of sub-section (11) of section 143 of
+the Act, we give in the "Annexure 1" a statement on the
+matters specified in paragraphs 3 and 4 of the Order.
+As required by Section 143(3) of the Act, we report, to
+the extent applicable, that:
+(a) We have sought and obtained all the information
+and explanations which to the best of our
+knowledge and belief were necessary for the
+purposes of our audit;
+(b) In our opinion, proper books of account as
+required by law have been kept by the Company
+so far as it appears from our examination of
+those books except for, the matters stated in the
+paragraph i(vi) below on reporting under Rule
+11(g);
+(c) The Balance Sheet, the Statement of Profit
+and Loss including the Statement of Other
+Comprehensive Income, the Cash Flow Statement
+and Statement of Changes in Equity dealt with
+by this Report are in agreement with the books
+of account;
+(d) In our opinion, the aforesaid standalone Ind AS
+• Evaluate the overall presentation, structure and
+content of the standalone Ind AS financial statements,
+including the disclosures, and whether the standalone
+Ind AS financial statements represent the underlying
+transactions and events in a manner that achieves
+fair presentation.
+financial statements comply with the Accounting
+Standards specified under Section 133 of the
+Act, read with Companies (Indian Accounting
+Standards) Rules, 2015, as amended;
+• Conclude on the appropriateness of management's use of
+the going concern basis of accounting and, based on the
+audit evidence obtained, whether a material uncertainty
+exists related to events or conditions that may cast
+significant doubt on the Company's ability to continue
+as a going concern. If we conclude that a material
+uncertainty exists, we are required to draw attention
+in our auditor's report to the related disclosures in the
+financial statements or, if such disclosures are inadequate,
+to modify our opinion. Our conclusions are based on the
+audit evidence obtained up to the date of our auditor's
+report. However, future events or conditions may cause
+the Company to cease to continue as a going concern.
+• Obtain an understanding of internal control relevant to
+the audit in order to design audit procedures that are
+appropriate in the circumstances. Under section 143(3)
+(i) of the Act, we are also responsible for expressing our
+opinion on whether the Company has adequate internal
+financial controls with reference to financial statements
+in place and the operating effectiveness of such controls.
+Patient First. Always.
+126
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Other Information
+The Company's Board of Directors is responsible for the
+other information. The other information comprises the
+information included in the Annual report, but does not
+include the standalone Ind AS financial statements and our
+auditor's report thereon.
+Sr. no.
+In connection with our audit of the standalone Ind AS
+financial statements, our responsibility is to read the other
+information and, in doing so, consider whether such other
+information is materially inconsistent with the financial
+statements or our knowledge obtained in the audit or
+otherwise appears to be materially misstated. If, based on
+the work we have performed, we conclude that there is
+a material misstatement of this other information, we are
+required to report that fact. We have nothing to report in
+this regard.
+Responsibilities of Management for the Standalone Ind
+AS Financial Statements
+The Company's Board of Directors is responsible for
+the matters stated in section 134(5) of the Act with
+respect to the preparation of these standalone Ind AS
+financial statements that give a true and fair view of the
+financial position, financial performance including other
+comprehensive income, cash flows and changes in equity of
+the Company in accordance with the accounting principles
+generally accepted in India, including the Indian Accounting
+Standards (Ind AS) specified under section 133 of the Act
+read with the Companies (Indian Accounting Standards)
+Rules, 2015, as amended. This responsibility also includes
+maintenance of adequate accounting records in accordance
+with the provisions of the Act for safeguarding of the assets
+of the Company and for preventing and detecting frauds and
+other irregularities; selection and application of appropriate
+accounting policies; making judgements and estimates that
+are reasonable and prudent; and the design, implementation
+and maintenance of adequate internal financial controls,
+that were operating effectively for ensuring the accuracy
+and completeness of the accounting records, relevant to
+the preparation and presentation of the standalone Ind
+AS financial statements that give a true and fair view and
+are free from material misstatement, whether due to fraud
+or error.
+In preparing the standalone Ind AS financial statements,
+management is responsible for assessing the Company's
+ability to continue as a going concern, disclosing, as
+applicable, matters related to going concern and using the
+going concern basis of accounting unless management either
+intends to liquidate the Company or to cease operations, or
+has no realistic alternative but to do so.
+Those Board of Directors are also responsible for overseeing
+the Company's financial reporting process.
+Auditor's Responsibilities for the Audit of the Standalone
+Ind AS Financial Statements
+Our objectives are to obtain reasonable assurance about
+whether the standalone Ind AS financial statements as
+a whole are free from material misstatement, whether
+due to fraud or error, and to issue an auditor's report that
+includes our opinion. Reasonable assurance is a high level
+of assurance, but is not a guarantee that an audit conducted
+in accordance with SAS will always detect a material
+misstatement when it exists. Misstatements can arise from
+fraud or error and are considered material if, individually
+or in the aggregate, they could reasonably be expected to
+influence the economic decisions of users taken on the basis
+of these standalone Ind AS financial statements.
+As part of an audit in accordance with SAs, we exercise
+professional judgement and maintain professional skepticism
+throughout the audit. We also:
+• Identify and assess the risks of material misstatement of
+the standalone Ind AS financial statements, whether due
+to fraud or error, design and perform audit procedures
+responsive to those risks, and obtain audit evidence that
+is sufficient and appropriate to provide a basis for our
+opinion. The risk of not detecting a material misstatement
+resulting from fraud is higher than for one resulting from
+error, as fraud may involve collusion, forgery, intentional
+omissions, misrepresentations, or the override of
+internal control.
+• Evaluate the appropriateness of accounting policies used
+and the reasonableness of accounting estimates and
+related disclosures made by management.
+(e) On the basis of the written representations
+received from the directors as on March 31, 2024
+taken on record by the Board of Directors, none of
+the directors is disqualified as on March 31, 2024
+from being appointed as a director in terms of
+Section 164 (2) of the Act;
+(f)
+The modification relating to the maintenance of
+accounts and other matters connected therewith
+are as stated in the paragraph (b) above on
+reporting under Section 143(3)(b) and paragraph
+i(vi) below on reporting under Rule 11(g);
+with the understanding, whether
+recorded in writing or otherwise,
+that the Intermediary shall, whether,
+directly or indirectly lend or invest in
+other persons or entities identified
+in any manner whatsoever by or on
+behalf of the Company ("Ultimate
+Beneficiaries") or provide any guarantee,
+security or the like on behalf of the
+Ultimate Beneficiaries;
+The management has represented
+that, to the best of its knowledge
+and belief, and read with note 55(20)
+to the standalone Ind AS financial
+statements, no funds have been
+received by the Company from any
+person(s) or entity(ies), including foreign
+entities ("Funding Parties"), with the
+understanding, whether recorded in
+writing or otherwise, that the Company
+shall, whether, directly or indirectly, lend
+or invest in other persons or entities
+identified in any manner whatsoever
+by or on behalf of the Funding Party
+("Ultimate Beneficiaries") or provide any
+guarantee, security or the like on behalf
+of the Ultimate Beneficiaries; and
+Based on such audit procedures
+performed that have been considered
+reasonable and appropriate in the
+circumstances, nothing has come
+to our notice that has caused us to
+believe that the representations under
+sub-clause (a) and (b) contain any
+material misstatement.
+The final dividend paid by the Company
+during the year in respect of the same
+declared for the previous year is in
+accordance with section 123 of the Act to the
+extent it applies to payment of dividend.
+vi.
+The interim dividend declared and paid by the
+Company during the year and until the date of
+this audit report is in accordance with section
+123 of the Act.
+As stated in note 43 to the standalone Ind AS
+financial statements, the Board of Directors
+of the Company have proposed final dividend
+for the year which is subject to the approval
+of the members at the ensuing Annual
+General Meeting. The dividend declared is in
+accordance with section 123 of the Act to the
+extent it applies to declaration of dividend.
+Based on our examination which included test
+checks, the Company has used accounting
+software for maintaining its books of
+account which have a feature of recording
+audit trail (edit log) facility and the same has
+operated throughout the year for all relevant
+transactions recorded in the software except
+that, audit trail feature is not enabled for
+certain changes made using privileged/
+administrative access rights, as described in
+note 55(11) to the standalone Ind AS financial
+statements. Further, during the course of our
+audit we did not come across any instance
+of audit trail feature being tampered with in
+respect of accounting software where audit
+trail has been enabled.
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+per Paul Alvares
+Partner
+Membership Number: 105754
+UDIN: 24105754BKBZNY4598
+Place of Signature: Mumbai
+Date: May 22, 2024
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+c)
+b)
+V.
+Financial Statements
+Standalone
+(g) With respect to the adequacy of the internal
+financial controls with reference to these
+standalone Ind AS financial statements and the
+operating effectiveness of such controls, refer to
+our separate Report in "Annexure 2" to this report;
+(h) In our opinion, the managerial remuneration for
+the year ended March 31, 2024 has been paid
+/ provided by the Company to its directors in
+accordance with the provisions of section 197 read
+with Schedule V to the Act;
+(i)
+With respect to the other matters to be included
+in the Auditor's Report in accordance with Rule
+11 of the Companies (Audit and Auditors) Rules,
+2014, as amended in our opinion and to the best of
+our information and according to the explanations
+given to us:
+i.
+ii.
+iii.
+iv.
+• Evaluated the disclosures in the standalone Ind AS financial
+statements.
+The Company has disclosed the impact of
+pending litigations on its financial position
+- Refer Note 39 to the standalone Ind AS
+financial statements.
+The Company has made provision, as required
+under the applicable law or accounting
+standards, for material foreseeable losses,
+if any, on long-term contracts including
+derivative contracts - Refer Note 29 to the
+standalone Ind AS financial statements.
+There has been no delay in transferring
+amounts, required to be transferred, to the
+Investor Education and Protection Fund by
+the Company except a sum of 1.4 Million
+which has been kept in abeyance due to
+pending legal cases.
+a) The management has represented
+that, to the best of its knowledge
+and belief, and read with note 55(20)
+to the standalone Ind AS financial
+statements, no funds have been
+advanced or loaned or invested
+(either from borrowed funds or share
+premium or any other sources or kind
+of funds) by the Company to or in any
+other person(s) or entity(ies), including
+foreign entities ("Intermediaries"),
+Patient First. Always.
+128
+Corporate Overview
+Statutory Reports
+in its standalone Ind AS financial statements
+Obtained and evaluated management's sensitivity analysis to
+ascertain the impact of changes in key assumptions.
+Our opinion on the standalone Ind AS financial statements
+does not cover the other information and we do not express
+any form of assurance conclusion thereon.
+Obtained the Company's computation of recoverable amount
+and tested the mathematical accuracy and reasonableness of key
+assumptions.
+Financial Statements
+Standalone
+Independent Auditor's Report
+To the Members of Sun Pharmaceutical Industries Limited
+Report on the Audit of the Standalone Ind AS Financial
+Statements
+Opinion
+We have audited the accompanying standalone Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited ("the Company"), which comprise the Balance sheet
+as at March 31, 2024, the Statement of Profit and Loss,
+including the statement of Other Comprehensive Income,
+the Cash Flow Statement and the Statement of Changes in
+Equity for the year then ended, and notes to the standalone
+Ind AS financial statements, including a summary of material
+accounting policies and other explanatory information
+In our opinion and to the best of our information and
+according to the explanations given to us, the aforesaid
+standalone Ind AS financial statements give the information
+required by the Companies Act, 2013, as amended ("the
+Act") in the manner so required and give a true and fair
+view in conformity with the accounting principles generally
+accepted in India, of the state of affairs of the Company as
+at March 31, 2024, its profit including other comprehensive
+income, its cash flows and the changes in equity for the year
+ended on that date.
+Basis for Opinion
+We conducted our audit of the standalone Ind AS financial
+statements in accordance with the Standards on Auditing
+(SAs), as specified under section 143(10) of the Act. Our
+responsibilities under those Standards are further described
+in the 'Auditor's Responsibilities for the Audit of the
+Standalone Ind AS Financial Statements' section of our
+report. We are independent of the Company in accordance
+Key audit matter
+•
+The Company assesses the need to make provision or to disclose
+a contingent liability on a case-to-case basis considering the
+underlying facts of each litigation.
+The eventual outcome of the litigations is uncertain and estimation
+at balance sheet date involves extensive judgement of management
+including input from legal counsel due to complexity of each
+litigation. Adverse outcomes could significantly impact the
+Company's reported results and balance sheet position.
+Considering the judgement involved in determining the need to make
+a provision or disclose as contingent liability, the matter is considered
+a Key Audit Matter.
+with the 'Code of Ethics' issued by the Institute of Chartered
+Accountants of India together with the ethical requirements
+that are relevant to our audit of the financial statements
+under the provisions of the Act and the Rules thereunder,
+and we have fulfilled our other ethical responsibilities in
+accordance with these requirements and the Code of Ethics.
+We believe that the audit evidence we have obtained is
+sufficient and appropriate to provide a basis for our audit
+opinion on the standalone Ind AS financial statements.
+Key Audit Matters
+Key audit matters are those matters that, in our professional
+judgement, were of most significance in our audit of the
+standalone Ind AS financial statements for the financial year
+ended March 31, 2024. These matters were addressed in
+the context of our audit of the standalone Ind AS financial
+statements as a whole, and in forming our opinion thereon,
+and we do not provide a separate opinion on these matters.
+For each matter below, our description of how our audit
+addressed the matter is provided in that context.
+We have determined the matters described below to be
+the key audit matters to be communicated in our report.
+We have fulfilled the responsibilities described in the
+Auditor's responsibilities for the audit of the standalone Ind
+AS financial statements section of our report, including in
+relation to these matters. Accordingly, our audit included
+the performance of procedures designed to respond to
+our assessment of the risks of material misstatement of
+the standalone Ind AS financial statements. The results of
+our audit procedures, including the procedures performed
+to address the matters below, provide the basis for our
+audit opinion on the accompanying standalone Ind AS
+financial statements.
+Corporate Overview Statutory Reports
+124
+Patient First. Always.
+123
+Site
+Corporate office
+Manufacturing plants- on-site
+3.
+Manufacturing plants- remote
+Annexure I
+Sites selected for audits
+Location
+How our audit addressed the key audit matter
+statements)
+Mumbai, Maharashtra
+Dewas, Madhya Pradesh- Formulation plant
+Toansa, Punjab- API plant
+Mohali, Punjab- Formulation plant
+Maduranthakam, Chennai- API plant
+Halol, Gujarat-Formulation plant
+Panoli, Gujarat- API plant
+Vadodara, Gujarat- R&D facility
+DNV Headquarters, Veritasveien 1, P.O.Box 300, 1322 Høvik, Norway. Tel: +47 67 57 99 00. www.dnv.com
+DNV Business Assurance India Pvt. Ltd.
+DNV-2024-ASR-704619
+Dewas, Madhya Pradesh- API plant
+Our audit procedures amongst others included the following:
+Litigations (as described in Note 39 of the standalone Ind AS financial
+The Company is involved in various legal proceedings including
+product liability, contracts, employment claims, Department of
+Justice (DOJ) investigations, anti-trust and other regulatory matters
+relating to conduct of its business.
+Evaluated the design and tested the operating effectiveness of
+controls in respect of the identification and evaluation of litigations,
+the recording/re-assessment of the related liabilities, provisions
+and disclosures.
+Evaluated the design and tested the operating effectiveness of
+controls in respect of the identification and evaluation of tax
+litigations/deferred tax and the recording and re-assessment of the
+related liabilities/assets and provisions and disclosures.
+Obtained list of ongoing tax litigations from management along
+with their assessment of the cases based on past precedents,
+judgements and matters in the jurisdiction, legal opinions sought by
+management, correspondences with tax department etc.
+Engaged tax experts, to evaluate management's assessment of
+the outcome of these litigations. Our experts considered legal
+precedence and other rulings in evaluating management's position
+on these tax litigations.
+Tested management's assumptions including forecasts and
+sensitivity analysis in respect of recoverability of deferred taxes on
+unabsorbed depreciation/carry forward losses/Minimum Alternate
+Tax (MAT) credit.
+Verified disclosures of the tax positions, tax loss carry forwards and
+tax litigations in the standalone Ind AS financial statements.
+50 of the standalone Ind AS financial statements)
+Our audit procedures amongst others included the following:
+•
+Evaluated the design and tested the operating effectiveness
+of controls over identification and disclosure of related party
+transactions.
+•
+Read minutes of the meetings of the Board of Directors and
+Audit Committee and traced related party transactions with limits
+approved by Audit Committee/Board.
+•
+Read declarations of related party transactions given to the Board
+of Directors and Audit Committee.
+•
+Verified the disclosures in the standalone Ind AS financial
+statements for compliance with Ind AS 24.
+Our audit procedures amongst others included the following:
+Other intangible assets (as described in Note 4(a) of the standalone Ind AS financial statements)
+The Company has significant intangible assets, comprising product
+intangibles and acquired trademarks. The Company conducts an
+annual impairment testing of intangible assets.
+Significant judgements are used to estimate the recoverable amount
+of these intangible assets and hence is considered as a Key Audit
+Matter.
+• Evaluated the design and tested the operating effectiveness of
+management's controls in assessing the carrying value of intangible
+assets.
+•
+•
+•
+Obtained a list of related parties from the Company's management
+and traced the related parties to declarations given by directors,
+where applicable, and to Note 50 of the standalone Ind AS financial
+statements.
+Our audit procedures amongst others included the following:
+•
+•
+Obtained a list of litigations from the Company's in-house legal
+counsel; identified material litigations from the aforementioned
+list and performed inquiries with the said counsel; obtained and
+read the underlying documents to assess the assumptions used by
+management in arriving at the conclusions.
+Circulated, obtained and read legal confirmations from Company's
+external legal counsels in respect of material litigations and
+considered that in our assessment.
+•
+Verified the disclosures related to provisions and contingent
+liabilities in the standalone Ind AS financial statements to assess
+consistency with underlying documents.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Key audit matter
+125
+Identification and disclosures of Related Parties (as described in Note
+The Company has related party transactions which include, amongst
+others, sale and purchase of goods/services to its subsidiaries,
+associates, joint venture and other related parties and lending,
+investment and borrowing to/from its subsidiaries, associates and
+joint venture.
+Recognition of deferred tax assets involves the assessment of its
+recoverability within the allowed time frame requiring significant
+estimate of the financial projections, availability of sufficient taxable
+income in the future and also involving significant judgements in the
+interpretation of tax regulations and tax positions adopted by the
+Company. Considering the judgement involved in determining the
+recovery of deferred tax assets, the matter is considered a Key Audit
+Matter.
+The assessment of outcome of litigations involves significant
+judgement which is dependent on the facts of each case, supporting
+judicial precedents and legal opinions of external and internal legal
+counsels and hence the matter has been considered as a Key Audit
+Matter.
+Identification and disclosure of related parties was a significant area
+of focus and hence is considered a Key Audit Matter.
+Tax litigations and recognition of deferred tax assets (as described in Note 9 and 39 of the standalone Ind AS financial statements)
+How our audit addressed the key audit matter
+The Company has significant tax litigations for which the Company
+assesses the outcome on a case-to-case basis considering the
+underlying facts of each tax litigation. Adverse outcomes could
+significantly impact the Company's reported results and balance
+sheet position.
+16,907.2
+7,527.7
+9 & 38
+453.7
+(7,024.4)
+5,914.7
+28,581.8
+503.3
+(305.1)
+5,461.0
+106.5
+(39.6)
+4.8
+(90.2)
+(1.7)
+31.5
+(195.5)
+15.1
+113.4
+38
+Corporate Overview Statutory Reports
+Total - (A)
+68.8
+33,869.0
+144.0
+6,327.0
+8
+520.4
+9
+9,945.2
+570.5
+10,323.9
+7
+10
+5,861.3
+11
+2,407.2
+2,365.1
+261,103.8
+245,223.4
+12
+5,033.8
+6
+245.1
+5 (b)
+45,391.4
+47,332.5
+3 (d)
+3,882.4
+3,288.7
+4 (a)
+1,208.0
+1,208.0
+4 (a)
+30,768.0
+38,576.2
+4 (b)
+3,778.7
+5,240.4
+5 (a)
+123,985.8
+123,985.8
+34,236.2
+39,891.9
+(i) Investments
+13
+5,824.0
+(c) Other current assets
+19
+8,913.1
+7,785.7
+Total current assets
+Assets classified as held for sale
+TOTAL ASSETS
+149,125.4
+164,437.5
+3 (c)
+418.7
+214.0
+410,647.9
+409,874.9
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview Statutory Reports
+7,695.5
+3 (a) & 3 (b)
+18
+33,470.3
+2,002.6
+(ii) Trade receivables
+14
+88,341.6
+71,250.2
+(iii) Cash and cash equivalents
+15
+3,264.6
+4,102.8
+(iv) Bank balances other than (iii) above
+16
+119.3
+110.0
+(v) Loans
+17
+6,555.1
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(vi) Other financial assets
+Financial Statements
+Standalone
+As at
+March 31, 2023
+Notes
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Annexure 2 to the Independent Auditor's report of even date on the Standalone Ind AS Financial Statements of
+Sun Pharmaceutical Industries Limited
+Report on the Internal Financial Controls under Clause
+(i) of Sub-section 3 of Section 143 of the Companies Act,
+2013 ("the Act")
+We have audited the internal financial controls with
+reference to standalone Ind AS financial statements of
+Sun Pharmaceutical Industries Limited ("the Company")
+as of March 31, 2024 in conjunction with our audit of the
+standalone Ind AS financial statements of the Company for
+the year ended on that date.
+Management's Responsibility for Internal Financial
+Controls
+The Company's Management is responsible for establishing
+and maintaining internal financial controls based on the
+internal control over financial reporting criteria established
+by the Company considering the essential components of
+internal control stated in the Guidance Note on Audit of
+Internal Financial Controls Over Financial Reporting issued
+by the Institute of Chartered Accountants of India ("ICAI").
+These responsibilities include the design, implementation
+and maintenance of adequate internal financial controls
+that were operating effectively for ensuring the orderly and
+efficient conduct of its business, including adherence to
+the Company's policies, the safeguarding of its assets, the
+prevention and detection of frauds and errors, the accuracy
+and completeness of the accounting records, and the timely
+preparation of reliable financial information, as required
+under the Companies Act, 2013.
+134
+Auditor's Responsibility
+Our audit involves performing procedures to obtain audit
+evidence about the adequacy of the internal financial
+controls with reference to these standalone Ind AS financial
+statements and their operating effectiveness. Our audit of
+internal financial controls with reference to standalone Ind
+AS financial statements included obtaining an understanding
+of internal financial controls with reference to these
+standalone Ind AS financial statements, assessing the risk
+that a material weakness exists, and testing and evaluating
+the design and operating effectiveness of internal control
+based on the assessed risk. The procedures selected depend
+on the auditor's judgement, including the assessment of the
+risks of material misstatement of the financial statements,
+whether due to fraud or error.
+We believe that the audit evidence we have obtained is
+sufficient and appropriate to provide a basis for our audit
+opinion on the Company's internal financial controls with
+reference to these standalone Ind AS financial statements.
+Meaning of Internal Financial Controls With Reference
+to these Standalone Ind AS Financial Statements
+A company's internal financial controls with reference
+to standalone Ind AS financial statements is a process
+designed to provide reasonable assurance regarding the
+reliability of financial reporting and the preparation of
+financial statements for external purposes in accordance
+with generally accepted accounting principles. A company's
+internal financial controls with reference to standalone
+Ind AS financial statements includes those policies and
+procedures that (1) pertain to the maintenance of records
+that, in reasonable detail, accurately and fairly reflect the
+transactions and dispositions of the assets of the company;
+(2) provide reasonable assurance that transactions are
+recorded as necessary to permit preparation of financial
+statements in accordance with generally accepted
+accounting principles, and that receipts and expenditures
+of the company are being made only in accordance with
+authorisations of management and directors of the
+company; and (3) provide reasonable assurance regarding
+prevention or timely detection of unauthorised acquisition,
+use, or disposition of the company's assets that could have a
+material effect on the financial statements.
+Inherent Limitations of Internal Financial Controls With
+Reference to Standalone Ind AS Financial Statements
+Because of the inherent limitations of internal financial
+controls with reference to standalone Ind AS financial
+statements, including the possibility of collusion or improper
+management override of controls, material misstatements
+due to error or fraud may occur and not be detected.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Our responsibility is to express an opinion on the
+Company's internal financial controls with reference to
+these standalone Ind AS financial statements based on
+our audit. We conducted our audit in accordance with
+the Guidance Note on Audit of Internal Financial Controls
+Over Financial Reporting (the "Guidance Note") and the
+Standards on Auditing, as specified under section 143(10)
+of the Act, to the extent applicable to an audit of internal
+financial controls, both issued by ICAI. Those Standards
+and the Guidance Note require that we comply with ethical
+requirements and plan and perform the audit to obtain
+reasonable assurance about whether adequate internal
+financial controls with reference to these standalone Ind AS
+financial statements was established and maintained and if
+such controls operated effectively in all material respects.
+Patient First. Always.
+Membership Number: 105754
+UDIN: 24105754BKBZNY4598
+Place of Signature: Mumbai
+Date: May 22, 2024
+per Paul Alvares
+Partner
+(b) The Company is not engaged in any Non-Banking
+Financial or Housing Finance activities.
+Accordingly, the requirement to report on
+clause 3(xvi)(b) of the Order is not applicable
+to the Company.
+(c) The Company is not a Core Investment Company
+as defined in the regulations made by Reserve
+Bank of India. Accordingly, the requirement to
+report on clause 3(xvi)(c) of the Order is not
+applicable to the Company.
+(d) Based on information and explanation provided
+by the management of the Company, the group
+does not have more than one Core Investment
+Company as a part of the Group, hence, the
+requirement to report on clause 3(xvi)(d) of the
+Order is not applicable to the Company. We have
+not, however, separately evaluated whether
+the information provided by the management is
+accurate and complete.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone
+133
+xvii. The Company has not incurred cash losses in the
+current year and in the immediately preceding
+financial year.
+xviii. There has been no resignation of the statutory auditors
+during the year. Accordingly, the requirement to report
+on clause 3(xviii) of the Order is not applicable to
+the Company.
+xix. According to the information and explanations given
+to us and on the basis of the financial ratios disclosed
+in note 55(13) to the standalone Ind AS payment of
+financial liabilities, other information accompanying
+the financial statements, our knowledge of the Board
+of Directors and management plans and based on
+our examination of the evidence supporting the
+assumptions, nothing has come to our attention, which
+causes us to believe that any material uncertainty
+exists as on the date of the audit report that Company
+is not capable of meeting its liabilities existing at the
+date of balance sheet as and when they fall due within
+a period of one year from the balance sheet date. We,
+however, state that this is not an assurance as to the
+future viability of the Company. We further state that
+our reporting is based on the facts up to the date of
+the audit report and we neither give any guarantee
+nor any assurance that all liabilities falling due within a
+period of one year from the balance sheet date, will get
+discharged by the Company as and when they fall due.
+xx. (a)
+In respect of other than ongoing projects, there
+are no unspent amounts that are required to be
+transferred to a Fund specified in Schedule VII to
+the Act, in compliance with second proviso to sub-
+section 5 of section 135 of the Act. This matter
+has been disclosed in note 55(8) to the standalone
+Ind AS financial statements.
+(b) There are no unspent amounts in respect
+of ongoing projects, that are required to be
+transferred to a special account in compliance of
+provision of sub-section 6 of section 135 of the
+Act. This matter has been disclosed in note 55(8)
+to the standalone Ind AS financial statements.
+For S R BC & CO LLP
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+Statutory Reports
+Financial Statements
+Standalone
+135
+Also, projections of any evaluation of the internal financial
+controls with reference to standalone Ind AS financial
+statements to future periods are subject to the risk that the
+internal financial control with reference to standalone Ind
+AS financial statements may become inadequate because of
+changes in conditions, or that the degree of compliance with
+the policies or procedures may deteriorate.
+(e) Intangible assets under development
+(f) Investments in the nature of equity in subsidiaries
+(g) Investments in the nature of equity in associates
+(h) Financial assets
+(i) Investments
+(ii) Loans
+(iii) Other financial assets
+(i) Deferred tax assets (Net)
+(j) Income tax assets (Net)
+(k) Other non-current assets
+Total non-current assets
+(2) Current assets
+(a) Inventories
+(b) Financial assets
+Financial Statements
+Standalone
+in Million
+As at
+(d) Other intangible assets
+March 31, 2024
+(c) Goodwill
+(a) Property, plant and equipment
+Opinion
+In our opinion, the Company has, in all material respects,
+adequate internal financial controls with reference to
+standalone Ind AS financial statements and such internal
+financial controls with reference to standalone Ind AS
+financial statements were operating effectively as at March
+31, 2024, based on the internal control over financial
+reporting criteria established by the Company considering
+the essential components of internal control stated in the
+Guidance Note issued by the ICAI.
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+per Paul Alvares
+Partner
+Membership Number: 105754
+UDIN: 24105754BKBZNY4598
+Place of Signature: Mumbai
+Date: May 22, 2024
+Patient First. Always.
+136
+Corporate Overview Statutory Reports
+Standalone Balance Sheet
+As at March 31, 2024
+Particulars
+ASSETS
+(1) Non-current assets
+(b) Capital work-in-progress
+xvi. (a) The provisions of section 45-IA of the Reserve
+Bank of India Act, 1934 (2 of 1934) are not
+applicable to the Company. Accordingly, the
+requirement to report on clause 3(xvi)(a) of the
+Order is not applicable to the Company.
+Standalone Balance Sheet
+Particulars
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Standalone Statement of Profit and Loss
+for the year ended March 31, 2024
+(11)
+Particulars
+(1) Revenue from operations
+138
+Other income
+(IV) Expenses
+Notes
+Year ended
+March 31, 2024
+* in Million
+Year ended
+March 31, 2023
+30
+202,751.7
+(III) Total income (I + II)
+Patient First. Always.
+Mumbai, May 22, 2024
+Chief Financial Officer
+83,654.4
+3 (c)
+6.3
+6.2
+173,703.9
+410,647.9
+172,391.3
+409,874.9
+For and on behalf of the Board of Directors of
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+DILIP S. SHANGHVI
+Chairman and Managing Director
+(DIN: 00005588)
+AALOK D. SHANGHVI
+Whole-time Director
+(DIN: 01951829)
+ANOOP DESHPANDE
+Company Secretary and Compliance Officer
+C. S. MURALIDHARAN
+31
+4,657.6
+208,121.4
+2,790.3
+207,409.3
+61,784.3
+67,972.2
+36
+Other expenses
+& 4 (a)
+16,008.7
+16,006.2
+3 (a), 3 (b)
+Depreciation and amortisation expense
+4,721.8
+7,840.8
+35
+Finance costs
+21,569.5
+23,739.5
+34
+Employee benefits expense
+Net (gain) loss on foreign currency transactions
+44,445.1
+(877.2)
+Total expenses (IV)
+210,911.7
+Cost of materials consumed
+32
+44,293.8
+51,656.3
+Purchases of stock-in-trade
+9,944.1
+11,264.6
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+33
+(VI) Exceptional items
+46,788.4
+36,686.7
+Profit/(loss) before exceptional item and tax (III - IV)
+(V)
+164,123.3
+170,722.6
+(502.6)
+As at March 31, 2024
+8,095.0
+29
+(iii) Lease liabilities
+(iv) Other financial liabilities
+(b) Other current liabilities
+(c) Provisions
+Total current liabilities
+Liabilities directly associated with assets classified as held for sale
+Total liabilities
+(b) total outstanding dues of creditors other than micro and small
+enterprises
+TOTAL EQUITY AND LIABILITIES
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No.: 324982E/E300003
+per PAUL ALVARES
+Partner
+Membership No.: 105754
+Mumbai, May 22, 2024
+The accompanying notes are an integral part of the standalone financial statements.
+As per our report of even date
+(a) total outstanding dues of micro and small enterprises
+(ii) Trade payables
+(i) Borrowings
+EQUITY AND LIABILITIES
+Equity
+(a) Equity share capital
+(b) Other equity
+Total equity
+Liabilities
+(1) Non-current liabilities
+(a) Financial liabilities
+(i)
+Borrowings
+(ii) Lease liabilities
+(iii) Other financial liabilities
+(b) Other non-current liabilities
+(c) Provisions
+Total non-current liabilities
+(2) Current liabilities
+(a) Financial liabilities
+Notes
+As at
+March 31, 2024
+137
+in Million
+As at
+March 31, 2023
+129,252.5
+88,730.7
+26
+106.0
+59.4
+445
+704.6
+25,491.2
+1,194.2
+30,061.6
+48
+133.9
+166.4
+27
+7,188.1
+40,640.1
+28
+4,730.5
+3,437.7
+2,061.6
+6,090.8
+2,197.3
+5,074.5
+20
+21
+2,399.3
+234,544.7
+2,399.3
+235,084.3
+236,944.0
+237,483.6
+22222
+110,360.1
+75,867.3
+48
+1,669.1
+1,815.1
+23
+10,772.0
+3,912.2
+24
+4,254.0
+25
+(2,379.3)
+xv. The Company has not entered into any non-cash
+transactions with its directors or persons connected
+with its directors. Accordingly, the requirement to
+report on clause 3(xv) of the Order is not applicable to
+the Company.
+its business.
+Subsidiaries
+Employees
+During the year the Company has not provided advances in the nature of loans, stood guarantee or provided
+security to any entity and hence not commented upon by us.
+15.3
+251.6
+174.5
+129.3
+Balance outstanding as at balance sheet date in respect of above cases
+(b) During the year, the investments made and the terms and conditions of the grant of all loans to companies or
+any other parties are not prejudicial to the Company's interest. The Company has not provided guarantees, given
+security or granted advances in nature of loans during the year and hence not commented upon by us.
+Name of the Entity
+(Wholly owned subsidiary)
+Sun Pharmaceutical
+Industries Inc.
+Amount
+(in million)
+8,303.5
+Due date
+17-01-2024
+(c) The Company has granted loans to subsidiaries where the schedule of repayment of principal and payment of
+interest has been stipulated and the repayment or receipts have been regular except in the following cases:
+Employees
+Subsidiaries
+* Million
+terms of approval of National
+Company Law Tribunal (NCLT).
+In respect of building where the Company is entitled to the right of occupancy and use and disclosed as property,
+plant and equipment in the standalone Ind AS financial statements, we report that the instrument entitling the
+right of occupancy and use of building, are in the name of the Company as at the balance sheet date.
+(d) The Company does not follow the revaluation model for subsequent measurement of its Property, Plant and
+Equipment (including Right of use assets) or intangible assets. Accordingly, the requirement to report on clause 3(i)
+(d) of the Order is not applicable to the Company.
+(e) There are no proceedings initiated or are pending against the Company for holding any benami property under the
+Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder. Accordingly, the requirement
+to report on clause 3(i)(e) of the Order is not applicable to the Company.
+ii. (a) Inventory has been physically verified by management during the year except for inventories lying with third
+parties which have been confirmed by them. In our opinion, the frequency of verification by management is
+reasonable and the coverage and procedure for such verification is appropriate. No discrepancies of 10% or more
+in aggregate for each class of inventory were noticed in respect such inventories.
+(b) The Company has not been sanctioned working capital limits in excess of five crores in aggregate from banks
+or financial institutions during the year on the basis of security of current assets. Accordingly, the requirement to
+report on clause 3(ii)(b) of the Order is not applicable to the Company.
+Patient First. Always.
+130
+iii.
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone
+(a) During the year the Company has provided loan to subsidiaries and employees as follows:
+Particulars
+Aggregate amount provided during the year to -
+Amount in
+Date of
+payment
+NA
+Extent of delay Remarks, if any
+NA The loan was further extended.
+Sun Pharmaceutical
+Percentage of the
+aggregate to the total
+loans granted during
+the year
+97.4%
+1.8%
+There were no advance in the nature of loan granted to companies, firms, Limited Liability Partnerships or any
+other parties and hence not commented upon by us.
+(f) The Company has not granted any loans or advances in the nature of loans, either repayable on demand or without
+specifying any terms or period of repayment. Accordingly, the requirement to report on clause 3(iii)(f) of the Order
+is not applicable to the Company.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone
+131
+iv.
+V.
+vi.
+In our opinion and according to the information and explanations given to us, the Company has complied with the
+provisions of section 186 of the Act in respect of loans, making investments and providing guarantees and securities
+as applicable. During the year, the Company has not granted any loans to parties covered under section 185 of the
+Act. Accordingly, the requirement to report on clause 3(iv) of the Order in respect of section 185 is not applicable to
+the Company.
+The Company has neither accepted any deposits from the public nor accepted any amounts which are deemed to be
+deposits within the meaning of sections 73 to 76 of the Companies Act and the rules made thereunder, to the extent
+applicable. Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to the Company.
+We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central
+Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the
+manufacture of applicable pharmaceutical products and are of the opinion that prima facie, the specified accounts and
+records have been made and maintained. We have not, however, made a detailed examination of the same.
+vii. (a) Undisputed statutory dues including goods and services tax, provident fund, employees' state insurance, income-
+tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues have
+generally been regularly deposited with the appropriate authorities, where applicable, though there has been
+a slight delay in a few cases. According to the information and explanations given to us and based on audit
+procedures performed by us, no undisputed amounts payable in respect of these statutory dues were outstanding,
+at the year end, for a period of more than six months from the date they became payable.
+605.6
+3
+to same parties
+(in million)
+33,197.9
+34,070.4
+34,070.4
+24,894.4
+09-02-2024
+NA
+NA The loan was further extended.
+Industries Inc.
+Realstone Infra Limited
+605.6
+24-03-2024
+NA
+NA The loan and interest were
+further extended.
+The Company has not granted any advances in nature of loan and hence not commented upon by us.
+(d) There are no loans granted which are overdue for more than ninety days as at March 31, 2024. Accordingly, we
+have not commented on the steps taken by the Company for recovery of the principal and interest.
+(e) During the year, the Company had renewed loan to wholly owned subsidiaries to settle the loan granted to the
+party which had fallen due during the year. The aggregate amount of such dues renewed / extended / settled
+by fresh loans and the percentage of the aggregate to the total loans or advances in the nature of loans granted
+during the year are as follows:
+Name of Party
+Sun Pharmaceutical Industries Inc.
+Realstone Infra Limited
+*Includes loans and interest extended during the year.
+Aggregate amount of
+loans or advances in the
+nature of loans granted
+during the year
+(in million)*
+Aggregate overdue
+amount settled by
+renewal or extension or
+by fresh loans granted
+(b) The dues of goods and services tax, provident fund, employees' state insurance, income-tax, sales-tax, service tax,
+duty of custom, duty of excise, value added tax, cess, and other statutory dues that have not been deposited on
+account of any dispute, are as follows:
+89.9
+Building
+Re: Sun Pharmaceutical Industries Limited (the "Company")
+In terms of the information and explanations sought by us and given by the Company and the books of account and records
+examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:
+i.
+(a) (A) The Company has maintained proper records showing full particulars, including quantitative details and
+situation of Property, Plant and Equipment.
+(B) The Company has maintained proper records showing full particulars of intangible assets.
+(b) All Property, Plant and Equipment have not been physically verified by management during the year but there is
+a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company
+and the nature of its assets. No material discrepancies were noticed on such verification.
+129
+(c) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease
+agreements are duly executed in favour of the lessee) disclosed in note 55(21) to the standalone Ind AS financial
+statements included in property, plant and equipment are held in the name of the Company, except for the
+following immovable properties:
+Description
+Held in name of
+Whether
+promoter,
+director or
+Period
+held -
+Reason for not being held
+value
+in name of Company
+Gross
+Carrying
+Annexure 1 referred to in paragraph 1 of our report of even date under the heading "Report on other legal and
+regulatory requirements"
+Financial Statements
+Standalone
+55 (2)
+Income tax on above
+b. Gain/(loss) on equity instrument measured at fair value through other
+comprehensive income
+Income tax on above
+Gain/(loss) on remeasurement of the defined benefit plans
+a.
+(A) Items that will not be reclassified to profit or loss
+(X) Other comprehensive income
+(IX) Profit/(loss) for the year (VII-VIII)
+Total tax expense (VIII)
+Deferred tax
+Current tax
+(VIII) Tax expense / (credit)
+17,410.5
+34,496.5
+(VII) Profit/(loss) before tax (V - VI)
+29,377.9
+2,190.2
+their relative
+(In Years)
+(*Millions)
+or employee
+building located thereon
+Company
+Act, 1956/2013 in terms of
+Freehold Land including
+Tamilnadu Dadha
+3.6
+27
+No
+building located thereon
+Pharmaceuticals Limited
+approval of the Honorable
+High Courts of respective
+states.
+Building
+Various
+4.1
+7
+The title deeds are in the name
+of erstwhile Company that was
+merged with the Company in
+provisions of the Companies
+Sun Pharma Global FZE
+7
+Solrex Pharmaceuticals
+Freehold Land
+Ranbaxy Drugs Limited
+2.7
+9
+The title deeds are in the
+Freehold Land
+Ranbaxy Laboratories Limited
+48.2
+9
+name of erstwhile companies
+that were merged with the
+Leasehold land
+Ranbaxy Laboratories Limited
+2.9
+9
+Company under relevant
+Freehold Land including
+95.9
+(b) The internal audit reports of the Company issued
+till the date of the audit report, for the period
+under audit have been considered by us.
+Name of the Statute
+Income Tax Act, 1961
+Corporate Overview Statutory Reports
+132
+Patient First. Always.
+*Amount includes interest till the date of demand and are net of advances paid/adjusted under protest.
+High Court
+Tribunal
+Assistant/Additional /
+Senior Joint Commissioner
+Appellate Authority
+Assistant Commissioner
+1,156.8
+Various years from 2010-11
+to 2014-15 and 2019
+CESTAT
+382.2
+Various years from 2018-19
+to 2022-23
+Commissioner (Appeals)
+to 2017-18
+53.5
+Various years from 1999-00
+to 2013-14
+3.0
+Financial Statements
+Standalone
+Various years from 1998-99
+viii. The Company has not surrendered or disclosed any
+transaction, previously not recorded in the books of
+account, in the tax assessments under the Income Tax
+Act, 1961 as income during the year. Accordingly, the
+requirement to report on clause 3(viii) of the Order is
+not applicable to the Company.
+X.
+xiv. (a) The Company has an internal audit system
+commensurate with the size and nature of
+xiii. Transactions with the related parties are in compliance
+with sections 177 and 188 of Companies Act,
+2013 where applicable and the details have been
+disclosed in the notes to the standalone Ind AS
+financial statements, as required by the applicable
+accounting standards.
+xii. The Company is not a Nidhi Company as per the
+provisions of the Companies Act, 2013. Accordingly,
+the requirement to report on clause 3(xii)(a) to (c) of the
+Order is not applicable to the Company.
+(c) We have taken into consideration the whistle
+blower complaints received by the Company
+during the year while determining the nature,
+timing and extent of audit procedures.
+(b) During the year, no report under sub-section 12
+of section 143 of the Companies Act, 2013 has
+been filed by cost auditor/secretarial auditor or by
+us in Form ADT-4, as prescribed under Rule 13 of
+Companies (Audit and Auditors) Rules, 2014, with
+the Central Government.
+No fraud by the Company or no material fraud on
+the Company has been noticed or reported during
+the year.
+Income Tax Act, 1961
+allotment or private placement of shares/fully
+or partially or optionally convertible debentures
+during the year under audit. Accordingly, the
+requirement to report on clause 3(x)(b) of the
+Order is not applicable to the Company.
+(a)
+xi.
+(b) The Company has not made any preferential
+The Company has not raised any money during the
+year by way of initial public offer/ further public
+offer (including debt instruments). Accordingly,
+the requirement to report on clause 3(x)(a) of the
+Order is not applicable to the Company.
+The Company has not raised loans during the year
+on the pledge of securities held in its subsidiaries,
+joint ventures or associate companies. Accordingly,
+the requirement to report on clause 3(ix)(f) of the
+Order is not applicable to the Company.
+(a)
+(f)
+(e) On an overall examination of the standalone Ind
+AS financial statements of the Company, the
+Company has not taken any funds from any entity
+or person on account of or to meet the obligations
+of its subsidiaries, associates or joint ventures.
+(d) On an overall examination of the standalone Ind
+AS financial statements of the Company, no funds
+raised on short-term basis have been used for
+long-term purposes by the Company.
+(c) Term loans were applied for the purpose for which
+the loans were obtained.
+(b) The Company has not been declared wilful
+defaulter by any bank or financial institution or
+government or any government authority.
+ix. (a) The Company has not defaulted in repayment of
+loans or other borrowings or in the payment of
+interest thereon to any lender.
+to 2017-18
+1,803.2
+Various years from 1998-99
+CESTAT
+Commissioner (Appeals)
+Customs, Excise and
+Service Tax Appellate
+Tribunal (CESTAT), Delhi
+Commissioner (Appeals)
+Commissioner of Income
+Tax (Appeals)
+High Court
+Forum where the dispute is
+pending
+Customs Duty,
+Penalty and Interest
+Sales Tax, Interest
+and Penalty
+Sales Tax, Interest
+and Penalty
+Sales Tax, Interest
+and Penalty
+Sales Tax, Interest
+and Penalty
+Customs Duty,
+Penalty and Interest
+Custom Act, 1962
+Commissioner (Appeals)
+The Goods and
+Service Tax Act
+The Goods and
+Service Tax Act
+Sales Tax Act / VAT
+(Various States)
+Sales Tax Act / VAT
+(Various States)
+Sales Tax Act / VAT
+(Various States)
+Sales Tax Act / VAT
+(Various States)
+Custom Act, 1962
+GST
+Service Tax
+The Central Excise
+Act, 1944
+Finance Act, 1994
+Income taxes,
+interest, and penalty
+Income taxes and
+interest
+Excise Duty,
+Interest and Penalty
+Excise Duty,
+Interest and Penalty
+Service Tax
+1.8
+Finance Act, 1994
+GST
+Amount
+Nature of dues
+(* million)*
+13.7
+Year to which it pertains
+The Central Excise
+Act, 1944
+Various years from 1999-00
+to 2017-18
+2017-18
+458.5
+2017-18 and 2021-22
+7,011.7
+Various years from 2013-14
+to 2017-18
+0.4
+Various years from 2015-16
+to 2017-18
+4.2
+Various years from 2003-04
+to 2018-19
+791.5
+Various years from 2003-04
+to 2016-17
+Various assessments
+4.7
+for AY 2014-15 and AY 2015-16
+AY 2007-08
+4.8
+68.0
+A contingent liability of the acquiree is assumed in a
+business combination only if such a liability represents
+a present obligation and arises from a past event and its
+fair value can be measured reliably. On an acquisition-
+by-acquisition basis, the Company recognises any non-
+controlling interest in the acquiree either at fair value or
+at the non-controlling interest's proportionate share of
+the acquiree's identifiable net assets. Transaction costs
+that the Company incurs in connection with a business
+combination, such as finder's fees, legal fees, due
+diligence fees and other professional and consulting
+fees, are expensed as incurred.
+If the business combination is achieved in stages, any
+previously held equity interest is re-measured at its
+acquisition date fair value and any resulting gain or
+loss is recognised in the statement of profit and loss,
+as appropriate.
+If the initial accounting for a business combination
+is incomplete by the end of the reporting period in
+which the combination occurs, the Company reports
+provisional amounts for the items for which the
+accounting is incomplete. Those provisional amounts
+are adjusted during the measurement period (see
+above), or additional assets or liabilities are recognised,
+to reflect new information obtained about facts and
+circumstances that existed at the acquisition date that,
+if known, would have affected the amounts recognised
+at that date.
+Foreign currency
+Foreign currency transactions
+Statutory Reports
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Financial Statements
+Standalone
+145
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+d.
+On initial recognition, transactions in currencies other
+than the Company's functional currency (foreign
+currencies) are translated at exchange rates on the
+date of the transactions. Monetary assets and liabilities
+denominated in foreign currencies at the reporting
+date are translated into the functional currency at
+the exchange rate on that date. Exchange differences
+arising on the settlement of monetary items or on
+translating monetary items at rates different from those
+at which they were translated on initial recognition
+Acquisition-related costs are expensed in the periods
+in which the costs are incurred and the services are
+received, with the exception of the costs of issuing debt
+or equity securities that are recognised in accordance
+with Ind AS 32 and Ind AS 109.
+Corporate Overview Statutory Reports
+C.
+e.
+• Level 1 inputs are quoted prices (unadjusted) in
+active markets for identical assets or liabilities that
+the entity can access at the measurement date;
+• Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the
+asset or liability, either directly or indirectly; and
+• Level 3 inputs are unobservable inputs for the asset
+or liability.
+The Company has consistently applied the following
+accounting policies to all periods presented in these
+financial statements.
+Current vs. Non-current
+Based on the time between the acquisition of assets
+for processing and their realisation in cash and cash
+equivalents, the Company has identified twelve months
+as its operating cycle for determining current and
+non-current classification of assets and liabilities in the
+balance sheet.
+not remeasured at subsequent reporting dates and its
+subsequent settlement is accounted for within equity.
+Contingent consideration that is classified as an asset
+or a liability is remeasured at fair value at subsequent
+reporting dates with the corresponding gain or loss
+being recognised in the statement of profit and loss.
+Consideration transferred does not include amounts
+related to settlement of pre-existing relationships.
+Patient First. Always.
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+b.
+Business combinations
+The Company determines that it has acquired a
+business when the acquired set of activities and
+assets include an input and a substantive process
+that together significantly contribute to the ability to
+create outputs. The acquired process is considered
+substantive if it is critical to the ability to continue
+producing outputs, and the inputs acquired include
+an organised workforce with the necessary skills,
+knowledge, or experience to perform that process or
+it significantly contributes to the ability to continue
+producing outputs and is considered unique or scarce
+or cannot be replaced without significant cost, effort,
+or delay in the ability to continue producing outputs.
+The Company uses the acquisition method of
+accounting to account for business combinations
+that occurred on or after April 01, 2015. The
+acquisition date is generally the date on which
+control is transferred to the acquirer. Judgement
+is applied in determining the acquisition date and
+determining whether control is transferred from one
+party to another. Control exists when the Company
+is exposed to, or has rights to, variable returns from
+its involvement with the entity and has the ability
+to affect those returns through power over the
+entity. In assessing control, potential voting rights
+are considered only if the rights are substantive. The
+Company measures goodwill as of the applicable
+acquisition date at the fair value of the consideration
+transferred, including the recognised amount of any
+non-controlling interest in the acquiree and the fair
+value of the acquirer's previously held equity interest
+in the acquiree (if any), less the net recognised amount
+of the identifiable assets acquired and liabilities
+assumed. When the fair value of the net identifiable
+assets acquired and liabilities assumed exceeds the
+consideration transferred, a bargain purchase gain is
+recognised immediately in the OCI and accumulated
+in equity as Capital reserve where there exists clear
+evidence of the underlying reasons for classifying
+the business combination as a bargain purchase else
+the gain is directly recognised in equity as Capital
+reserve. Consideration transferred includes the fair
+values of the assets transferred, liabilities incurred
+by the Company to the previous owners of the
+acquiree, and equity interests issued by the Company.
+Consideration transferred also includes the fair value
+of any contingent consideration. Changes in the fair
+value of the contingent consideration that qualify
+as measurement period adjustments are adjusted
+retrospectively, with corresponding adjustments
+against goodwill or capital reserve, as the case maybe.
+The subsequent accounting for changes in the fair
+value of the contingent consideration that do not
+qualify as measurement period adjustments depends
+on how the contingent consideration is classified.
+Contingent consideration that is classified as equity is
+144
+during the period or in previous period are recognised
+in profit or loss in the period in which they arise
+except for:
+Buildings other than Factory Buildings*
+Plant and equipment
+• exchange differences on transactions entered into in
+order to hedge certain foreign currency risks.
+Includes assets given under operating lease
+Software for internal use, which is primarily acquired
+from third-party vendors and which is an integral part
+of a tangible asset, including consultancy charges for
+implementing the software, is capitalised as part of the
+related tangible asset. Subsequent costs associated
+with maintaining such software are recognised
+as expense as incurred. The capitalised costs are
+amortised over the lower of the estimated useful life
+of the software and the remaining useful life of the
+tangible fixed asset.
+Goodwill and Other Intangible assets
+Goodwill
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-
+controlling interest in the acquiree, over the fair
+value of the Company's share of identifiable net
+assets acquired. Goodwill is measured at cost less
+accumulated impairment losses.
+Other Intangible assets
+Other Intangible assets that are acquired by the
+Company and that have finite useful lives are measured
+at cost less accumulated amortisation and accumulated
+impairment losses, if any. Subsequent expenditures
+are capitalised only when they increase the future
+economic benefits embodied in the specific asset to
+which they relate.
+Patient First. Always.
+146
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+Research and development
+Expenditure on research activities undertaken with
+the prospect of gaining new scientific or technical
+knowledge and understanding are recognised as
+an expense when incurred. Development activities
+involve a plan or design for the production of new
+or substantially improved products and processes.
+An internally-generated intangible asset arising from
+development is recognised if and only if all of the
+following have been demonstrated:
+• development costs can be measured reliably;
+⚫ the product or process is technically and
+commercially feasible;
+⚫ the Company intends to and has sufficient
+resources/ability to complete development and to
+use or sell the asset.
+In addition, for financial reporting purposes, fair
+value measurements are categorised into Level 1,
+2, or 3 based on the degree to which the inputs to
+the fair value measurements are observable and the
+significance of the inputs to the fair value measurement
+in its entirety, which are described as follows:
+Office equipment
+Furniture and fixtures
+Vehicles
+3-10
+2-5
+• exchange differences relating to the translation of
+the results and the net assets of the Company's
+foreign operations from their functional currencies
+to the Company's presentation currency (i.e. *) are
+recognised directly in the other comprehensive
+income and accumulated in foreign currency
+translation reserve. Exchange difference in the
+foreign currency translation reserve are reclassified
+to profit or loss account on the disposal of the
+foreign operation.
+Non-monetary items that are measured in terms of
+historical cost in foreign currency are measured using
+the exchange rates at the date of initial transaction.
+Segment reporting
+Operating segments are reported in a manner
+consistent with the internal reporting provided to the
+chief operating decision maker. The chief operating
+decision maker of the Company is responsible for
+allocating resources and assessing performance of
+the operating segments.
+Property, plant and equipment
+Items of property, plant and equipment are stated in
+balance sheet at cost less accumulated depreciation
+and accumulated impairment losses, if any. Freehold
+land is not depreciated.
+Assets in the course of construction for production,
+supply or administrative purposes are carried at cost,
+less any recognised impairment loss. Cost includes
+purchase price, borrowing costs if capitalisation criteria
+are met and directly attributable cost of bringing the
+asset to its working condition for the intended use.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate. Such assets
+are classified to the appropriate categories of property,
+plant and equipment when completed and ready for
+intended use. Depreciation of these assets, on the same
+basis as other assets, commences when the assets are
+ready for their intended use. When parts of an item of
+f.
+• exchange differences on foreign currency
+borrowings relating to assets under construction
+for future productive use, which are included in
+the cost of those assets when they are regarded
+as an adjustment to interest costs on those foreign
+currency borrowings.
+property, plant and equipment have different useful
+lives, they are accounted for as separate items (major
+components) of property, plant and equipment.
+The estimated useful lives are as follows:
+Asset Category
+Factory Buildings
+No. of years
+10-30
+30-60
+3-25
+5-10
+Depreciation is recognised on the cost of assets (other
+than freehold land and Capital work-in-progress) less
+their residual values on straight-line method over their
+useful lives. Leasehold improvements are depreciated
+over period of the lease agreement or the useful life,
+whichever is shorter. Depreciation methods, useful
+lives and residual values are reviewed at the end of
+each reporting period, with the effect of any changes in
+estimate accounted for on a prospective basis.
+• future economic benefits are probable; and
+Subsidiary companies
+The standalone financial statements are presented
+in Indian Rupees (*) and all values are rounded to the
+nearest Million (000,000) upto one decimal, except
+when otherwise indicated.
+3.1
+3.1
+55.7
+(139.8)
+55.7
+28,442.0
+(28,981.6)
+2,399.3 22,258.5 11,874.1
+43.8
+7.5 51,435.0 127,310.4
+^ (198.6)
+28,383.2
+(28,981.6)
+(10.2)
+82.1
+236,944.0
+^ Represents remeasurement of the defined benefit plans.
+The accompanying notes are an integral part of the standalone financial statements.
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No.: 324982E/E300003
+per PAUL ALVARES
+Partner
+21,543.5
+Membership No.: 105754
+28,581.8
+26.4
+21,543.5
+151.6
+245,879.5
+16,907.2
+16,907.2
+^ 73.8
+16,981.0
+(58.7)
+(125.2)
+(110.1)
+237,483.6
+(58.7)
+16,797.1
+(25,193.0)
+(25,193.0)
+2,399.3
+22,258.5 11,874.1
+43.8
+7.5 51,435.0 127,908.8
+28,581.8
+(13.3)
+21,543.5
+(125.2)
+Mumbai, May 22, 2024
+For and on behalf of the Board of Directors of
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Depreciation and amortisation expense
+17,410.5
+16,006.2
+16,008.7
+Net (gain) loss on sale / write off/ impairment of property, plant and equipment, other
+intangible assets and intangible assets under development
+1,707.1
+40.4
+(Gain)/loss on derecognition of Right-of-use assets
+(1.3)
+Adjustments for:
+(0.4)
+Interest income
+7,840.8
+(3,964.3)
+4,721.8
+(2,202.0)
+Net (gain) loss arising on financial assets measured at fair value through profit or loss
+Net (gain) / loss on sale of financial assets measured at fair value through profit or loss
+Provision / write off / (reversal) for doubtful trade receivables / advances
+(2.2)
+Sundry balances written back, net
+(220.3)
+119.5
+(215.6)
+(173.0)
+Finance costs
+Profit/(loss) before tax
+Year ended
+March 31, 2023
+in Million
+DILIP S. SHANGHVI
+Chairman and Managing Director
+(DIN: 00005588)
+ANOOP DESHPANDE
+Company Secretary and Compliance Officer
+AALOK D. SHANGHVI
+Whole-time Director
+(DIN: 01951829)
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 22, 2024
+Corporate Overview
+Statutory Reports
+Standalone
+Financial Statements
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Standalone Statement of Cash Flow
+for the year ended March 31, 2024
+Particulars
+A. Cash flow from operating activities
+141
+Year ended
+March 31, 2024
+34,496.5
+45.4
+242.5
+136,120.8
+43.8
+Year ended
+March 31, 2024
+139
+in Million
+Year ended
+March 31, 2023
+85.5
+(192.4)
+(29.8)
+67.2
+55.7
+(125.2)
+Notes
+(139.8)
+28,442.0
+16,797.1
+46
+11.9
+7.0
+11.9
+7.0
+For and on behalf of the Board of Directors of
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+DILIP S. SHANGHVI
+(110.1)
+Chairman and Managing Director
+Mumbai, May 22, 2024
+Partner
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Standalone Statement of Profit and Loss
+for the year ended March 31, 2024
+Particulars
+(B) Items that may be reclassified to profit or loss
+a.
+Effective portion of gain / (loss) on designated portion of hedging
+instruments in a cash flow hedge
+Income tax on above
+Membership No.: 105754
+Total -(B)
+(XI) Total comprehensive income for the year (IX+X)
+Earnings per equity share (face value per equity share - 1)
+Basic (in )
+Diluted (in)
+The accompanying notes are an integral part of the standalone financial statements.
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No.: 324982E/E300003
+per PAUL ALVARES
+(X) Total other comprehensive income (A+B)
+(DIN: 00005588)
+AALOK D. SHANGHVI
+Whole-time Director
+10
+Equity
+share
+capital
+Reserves and surplus
+Capital Securities Amalgamation
+reserve premium
+Capital
+redemption
+reserve
+General
+reserve
+Retained
+instrument
+140
+earnings
+through OCI
+Other comprehensive income (OCI)
+Equity Foreign currency
+translation
+reserve
+Effective
+portion of cash
+flow hedges
+Total
+2,399.3
+22,258.5 11,874.1
+reserve
+in Million
+Other Equity
+Balance as at March 31, 2024
+(DIN: 01951829)
+ANOOP DESHPANDE
+Company Secretary and Compliance Officer
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 22, 2024
+Patient First. Always.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Standalone Statement of Changes in Equity
+for the year ended March 31, 2024
+Particulars
+Balance as at March 31, 2022
+Profit for the year
+Other comprehensive income for the year, net of tax
+Total comprehensive income for the year
+Payment of dividend
+Balance as at March 31, 2023
+Profit for the year
+Other comprehensive income for the year, net of tax
+Total comprehensive income for the year
+Payment of dividend
+7.5 51,435.0
+(128.5)
+Write off of investment due to dissolution of subsidiary
+8.8
+4,102.8
+Notes:
+1. Cash and cash equivalents comprises of
+Particulars
+Balances with banks
+In current accounts
+Cash on hand
+Cash and cash equivalents in statement of cash flow (Refer Note 15)
+2. Change in financial liability / asset arising from financing activities
+3,264.6
+Particulars
+Changes from financing cash flows
+Closing balance
+For movement of lease liabilities, Refer Note 48.
+The accompanying notes are an integral part of the standalone financial statements.
+As per our report of even date
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration No.: 324982E/E300003
+per PAUL ALVARES
+Opening balance
+Partner
+Cash and cash equivalents at the end of the year
+(24.4)
+(58.1)
+(70.6)
+(141.3)
+(150.0)
+(18.9)
+(22.9)
+(493.3)
+(9.6)
+(28,981.7)
+195.3
+(25,188.8)
+4,739.5
+1,693.1
+Net increase/(decrease) in cash and cash equivalents (A+B+C)
+(813.8)
+(287.8)
+Cash and cash equivalents at the beginning of the year
+4,102.8
+4,195.3
+Effect of exchange differences on restatement of foreign currency cash and cash equivalents
+Net cash flow from/ (used in) financing activities (C)
+Membership No.: 105754
+Mumbai, May 22, 2024
+As at
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 22, 2024
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone
+143
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+1.
+(DIN: 01951829)
+2.
+Sun Pharmaceutical Industries Limited (SPIL or the
+"Company") (CIN L24230GJ1993PLC019050), is a
+public limited company incorporated and domiciled in
+India, having its registered office at SPARC, Tandalja,
+Vadodara, Gujarat 390012, India. SPIL is listed on the
+BSE Limited and National Stock Exchange of India
+Limited. The Company is incorporated under the
+provisions of Companies Act, as applicable in India. The
+Company is engaged in the business of manufacturing,
+developing and marketing a wide range of branded
+and generic formulation and Active Pharmaceutical
+ingredients (APIs). The Company has various
+manufacturing locations spread across the country
+with trading and other incidental and related activities
+extending to the global market.
+The standalone financial statements were authorised
+for issue in accordance with a resolution of the
+directors on May 22, 2024.
+Material accounting policies
+2.1 Statement of compliance
+These financial statements are separate financial
+statements of the Company (also called standalone
+financial statements). The Company has prepared its
+standalone financial statements for the year ended
+March 31, 2024 in accordance with Indian Accounting
+Standards (Ind AS) notified under the Companies
+(Indian Accounting Standards) Rules, 2015 (as amended)
+together with the comparative period data as at and
+for the year ended March 31, 2023 and presentation
+requirements of Division II of Schedule III to the
+Companies Act, 2013, (Ind AS compliant Schedule III),
+as applicable to the standalone financial statements.
+2.2 Basis of preparation and presentation
+The standalone financial statements have been
+prepared on the historical cost convention and
+on an accrual basis, except for: (i) certain financial
+instruments that are measured at fair values at the
+end of each reporting period; (ii) Non-current assets
+classified as held for sale which are measured at the
+lower of their carrying amount and fair value less costs
+to sell; (iii) investment in associates are accounted for at
+cost (iv) derivative financial instruments and (v) defined
+benefit plans - plan assets that are measured at fair
+values at the end of each reporting period, as explained
+in the accounting policies below:
+Historical cost is generally based on the fair value
+of the consideration given in exchange for goods
+and services.
+a.
+General information
+Whole-time Director
+AALOK D. SHANGHVI
+Company Secretary and Compliance Officer
+March 31, 2024
+in Million
+As at
+March 31, 2023
+3,252.7
+11.9
+3,264.6
+4,086.6
+16.2
+4,102.8
+in Million
+Year ended March 31, 2024
+Year ended March 31, 2023
+Borrowings
+Borrowings
+75,926.7
+48,687.1
+34,539.4
+27,239.6
+110,466.1
+75,926.7
+For and on behalf of the Board of Directors of
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+DILIP S. SHANGHVI
+Chairman and Managing Director
+(DIN: 00005588)
+ANOOP DESHPANDE
+(104.6)
+(106.6)
+28.7
+(54,929.6)
+(2,171.5)
+(19,331.8)
+494.5
+Net Income tax (paid) / refund received (including interest on refunds)
+(3,418.7)
+9,390.7
+(4,319.9)
+Net cash generated from/ (used in) operating activities (A)
+(2,924.2)
+B. Cash flow from investing activities
+(4,985.7)
+Payments for purchase of property, plant and equipment (including capital work-in-progress,
+other intangible assets and intangible assets under development)
+(9,624.3)
+Proceeds from disposal of property, plant and equipment and other intangible assets
+147.2
+83.0
+Loans/Inter corporate deposits
+Given to placed
+Subsidiary companies
+Received back / matured from
+Subsidiary companies
+(7,492.4)
+(33,503.1)
+4,063.6
+(4,136.3)
+Impairment in value of investment
+Effect of exchange rate changes
+Operating profit / (loss) before working capital changes
+Movements in working capital:
+(Increase) decrease in inventories
+(Increase) decrease in trade receivables
+(Increase) decrease in other assets
+Increase (decrease) in trade payables
+Increase (decrease) in other liabilities
+Increase (decrease) in provisions
+Cash generated from/ (used in) operations
+29,377.9
+(3,583.0)
+52,185.6
+340.0
+65,644.5
+5,655.7
+(5,854.5)
+(14,771.4)
+(29,320.1)
+(2,764.5)
+(825.3)
+Purchase of investments
+Fair value is the price that would be received to sell
+an asset or paid to transfer a liability in an orderly
+transaction between market participants at the
+measurement date, regardless of whether that price
+is directly observable or estimated using another
+valuation technique. In estimating the fair value of an
+asset or a liability, the Company takes into account
+the characteristics of the asset or liability if market
+participants would take those characteristics into
+account when pricing the asset or liability at the
+measurement date. Fair value for measurement and/
+or disclosure purposes in these financial statements
+is determined on such a basis, except for share-based
+payment transactions that are within the scope of Ind AS
+102, leasing transactions that are within the scope of Ind
+AS 116, and measurements that have some similarities
+to fair value but are not fair value, such as net realisable
+value in Ind AS 2 or value in use in Ind AS 36.
+Associate
+(15.3)
+C. Cash flow from financing activities
+Proceeds from borrowings
+Subsidiary company
+Repayment of borrowings
+Subsidiary company
+Net increase/(decrease) in working capital demand loans
+Repayment towards lease liabilities
+Subsidiary companies
+Others
+Particulars
+Interest paid on lease liabilities
+Others
+Interest paid
+Dividend paid
+Year ended
+March 31, 2024
+* in Million
+Year ended
+March 31, 2023
+145,618.4
+82,140.5
+(111,125.6)
+46.6
+Development expenditure is capitalised when the
+criteria for recognising an asset are met, usually when a
+regulatory filing has been made in a major market and
+approval is considered highly probable.
+Financial Statements
+Standalone
+for the year ended March 31, 2024
+Standalone Statement of Cash Flow
+(159.2)
+60.0
+(165.1)
+(28,169.6)
+(36,929.5)
+Proceeds from sale of investments
+Others
+30,392.5
+36,952.5
+Bank balances not considered as cash and cash equivalents
+Fixed deposits / margin money placed
+Fixed deposits / margin money matured
+(12.0)
+12.0
+1,043.5
+Interest received
+Net cash flow from/ (used in) investing activities (B)
+2,673.6
+(2,629.1)
+1,522.3
+(7,051.7)
+Patient First. Always.
+142
+Corporate Overview Statutory Reports
+Others
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable to
+preparing the asset for its intended use.
+5,070.8
+Acquired research and development intangible assets
+which are under development, are recognised as In-
+Process Research and Development assets ("IPR&D").
+IPR&D assets are not amortised, but evaluated for
+potential impairment on an annual basis or when
+there are indications that the carrying value may
+not be recoverable. Any impairment charge on such
+IPR&D assets is recognised in the statement of profit
+and loss. Intangible assets relating to products under
+development, other intangible assets not available for
+use and intangible assets having indefinite useful life
+are tested for impairment annually, or more frequently
+when there is an indication that the assets may be
+impaired. All other intangible assets are tested for
+impairment when there are indications that the carrying
+value may not be recoverable.
+Debt instrument at FVTOCI
+included in Other Income in the statement of profit and
+loss. The losses arising from impairment are recognised
+in the statement of profit and loss.
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+148
+A 'debt instrument' is measured as at FVTOCI if both of
+the following criteria are met:
+Patient First. Always.
+Contractual terms of the asset give rise on
+specified dates to cash flows that are solely
+payments of principal and interest (SPPI) on the
+principal amount outstanding.
+b)
+whose objective is to hold assets for collecting
+contractual cash flows, and
+The asset is held within a business model
+a)
+Non-current assets and disposal groups are classified as
+held for sale if their carrying amount will be recovered
+principally through a sale transaction rather than
+through continuing use. This condition is regarded as
+met only when the asset (or disposal group) is available
+for immediate sale in its present condition subject
+only to terms that are usual and customary for sales
+of such asset (or disposal group) and its sale is highly
+probable. Management must be committed to the sale,
+which should be expected to qualify for recognition
+as a completed sale within one year from the date
+of classification.
+Non-current assets held for sale
+After initial measurement, such financial assets are
+subsequently measured at amortised cost using the
+effective interest rate (EIR) method. Amortised cost
+is calculated by taking into account any discount or
+premium on acquisition and fees or costs that are
+an integral part of the EIR. The EIR amortisation is
+a)
+b)
+The objective of the business model is achieved
+both by collecting contractual cash flows and
+selling the financial assets, and
+Payments to third parties that generally take the form
+of up-front payments and milestones for in-licensed
+products, compounds and intellectual property are
+capitalised since the probability of expected future
+economic benefits criterion is always considered to be
+satisfied for separately acquired intangible assets.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+On de-recognition of a financial asset in its entirety, the
+difference between the asset's carrying amount and the
+sum of the consideration received and receivable and
+the cumulative gain or loss that had been recognised
+in OCI and accumulated in equity is recognised in
+profit or loss if such gain or loss would have otherwise
+been recognised in profit or loss on disposal of that
+financial asset.
+When the Company has transferred its rights to
+receive cash flows from an asset or has entered into
+a pass-through arrangement, it evaluates if and to
+what extent it has retained the risks and rewards
+of ownership. When it has neither transferred nor
+retained substantially all of the risks and rewards of
+the asset, nor transferred control of the asset, the
+Company continues to recognise the transferred asset
+to the extent of the Company's continuing involvement.
+In that case, the Company also recognises an associated
+liability. The transferred asset and the associated
+liability are measured on a basis that reflects the rights
+and obligations that the Company has retained.
+• The Company has transferred its rights to receive
+contractual cash flows from the asset or has
+assumed an obligation to pay the received cash flows
+in full without material delay to a third party under
+a 'pass-through' arrangement; and either (a) the
+Company has transferred substantially all the risks
+and rewards of the asset, or (b) the Company has
+neither transferred nor retained substantially all the
+risks and rewards of the asset, but has transferred
+control of the asset.
+• The contractual rights to receive cash flows from the
+asset have expired, or
+A financial asset (or, where applicable, a part of a
+financial asset or part of a group of similar financial
+assets) is primarily derecognised (i.e. removed from the
+Company's balance sheet) when:
+De-recognition
+Equity instruments included within the FVTPL category
+are measured at fair value with all changes recognised
+in the statement of profit and loss.
+If the Company decides to classify an equity instrument
+as at FVTOCI, then all fair value changes on the
+instrument, including foreign exchange gain or loss and
+excluding dividends, are recognised in the OCI. There is
+no recycling of the amounts from OCI to profit or loss,
+even on sale of investment. However, the Company
+may transfer the cumulative gain or loss within equity.
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which are
+held for trading are classified as at FVTPL. For all
+other equity instruments, the Company may make an
+irrevocable election to present subsequent changes in
+the fair value in OCI. The Company makes such election
+on an instrument-by-instrument basis. The classification
+is made on initial recognition and is irrevocable.
+Debt instruments included within the FVTPL category
+are measured at fair value with all the changes in the
+statement of profit and loss.
+In addition, the Company may elect to designate a debt
+instrument, which otherwise meets amortised cost or
+FVTOCI criteria, as at FVTPL. However, such election
+is allowed only if doing so reduces or eliminates a
+measurement or recognition inconsistency (referred to
+as 'accounting mismatch').
+FVTPL is a residual category for debt instruments. Any
+debt instrument, which does not meet the criteria for
+categorisation as at amortised cost or as FVTOCI, is
+classified as at FVTPL.
+Debt instrument at FVTPL
+Debt instruments included within the FVTOCI category
+are measured initially as well as at each reporting date
+at fair value. Fair value movements are recognised
+in the other comprehensive income (OCI). However,
+the Company recognises interest income, impairment
+losses and reversals and foreign exchange gain or loss in
+the statement of profit and loss. On de-recognition of
+the asset, cumulative gain or loss previously recognised
+in OCI is reclassified from the equity to profit or loss.
+Interest earned whilst holding FVTOCI debt instrument
+is reported as interest income using the EIR method.
+The contractual terms of the instrument give rise
+on specified dates to cash flows that are SPPI on
+the principal amount outstanding.
+i.
+A 'debt instrument' is measured at the amortised cost if
+both the following conditions are met:
+Equity instruments
+Equity instruments measured at fair value through
+other comprehensive income (FVTOCI)
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+When an impairment loss subsequently reverses, the
+carrying amount of the Investment is increased to the
+revised estimate of its recoverable amount, so that the
+increased carrying amount does not exceed the cost
+of the Investment. A reversal of an impairment loss
+is recognised immediately in the Statement of Profit
+and Loss.
+The Company reviews its carrying value of investments
+carried at cost annually, or more frequently when there
+is indication for impairment. If the recoverable amount
+is less than its carrying amount, the impairment loss is
+recorded in the Statement of Profit and Loss.
+Impairment of Investments in the nature of equity in
+subsidiaries and associates
+The Company has elected to recognise its investments
+in equity instruments in subsidiaries and associates at
+cost in the separate financial statements in accordance
+with the option available in Ind AS 27, 'Separate
+Financial Statements'.
+Financial Statements
+Standalone
+Investments in the nature of equity in subsidiaries and
+associates
+The estimated useful life and amortisation method are
+reviewed at the end of each reporting period, with the
+effect of any changes in estimate being accounted for
+on a prospective basis.
+The estimated useful lives for Product related intangibles
+and Other intangibles range from 3 to 14 years.
+Amortisation is recognised on a straight-line basis
+over the estimated useful lives of intangible assets.
+Intangible assets that are not available for use are
+amortised from the date they are available for use.
+Subsequent expenditures are capitalised only when
+they increase the future economic benefits embodied
+in the specific asset to which they relate. All other
+expenditures, including expenditures on internally
+generated goodwill and brands, are recognised in the
+statement of profit and loss as incurred.
+g.
+The consideration for acquisition of intangible asset
+which is based on reaching specific milestone that
+are dependent on the Company's future activity
+is recognised only when the activity requiring the
+payment is performed.
+Debt instruments at amortised cost
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits are
+expected from their use. Gain or loss arising on such
+de-recognition is recognised in the statement of profit
+and loss, and are measured as the difference between
+the net disposal proceeds, if any, and the carrying
+amount of respective intangible assets as on the date of
+de-recognition.
+147
+De-recognition of intangible assets
+for the year ended March 31, 2024
+• Debt instruments and equity instruments at fair
+value through profit or loss (FVTPL)
+Notes to the Standalone Financial Statements
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+• Debt instruments at amortised cost
+For purposes of subsequent measurement, financial
+assets are classified in four categories:
+All financial assets are recognised initially at fair value
+plus, in the case of financial assets not recorded at fair
+value through profit or loss, transaction costs that are
+attributable to the acquisition of the financial asset.
+Purchases or sales of financial assets that require
+delivery of assets within a time frame established by
+regulation or convention in the market place (regular
+way trades) are recognised on the date the Company
+commits to purchase or sell the financial assets.
+Initial recognition and measurement
+Financial assets
+A financial instrument is any contract that gives rise to
+a financial asset of one entity and a financial liability or
+equity instrument of another entity.
+Subsequent measurement
+Non-current assets (and disposal groups) classified as
+held for sale are measured at the lower of their carrying
+amount and fair value less costs to sell. Non-current
+assets held for sale are not depreciated or amortised.
+h.
+j.
+In respect of assets other than goodwill, impairment
+losses recognised in prior periods are assessed at each
+reporting date for any indications that the loss has
+decreased or no longer exists. An impairment loss is
+reversed if there has been a change in the estimates
+used to determine the recoverable amount. An
+impairment loss is reversed only to the extent that the
+asset's carrying amount does not exceed the carrying
+amount that would have been determined, net of
+depreciation or amortisation, if no impairment loss had
+been recognised.
+An impairment loss is recognised in the statement of
+profit and loss if the estimated recoverable amount
+of an asset or its cash generating unit is lower than
+its carrying amount. Impairment losses recognised in
+respect of cash-generating units are allocated first to
+reduce the carrying amount of any goodwill allocated
+to the units and then to reduce the carrying amount of
+the other assets in the unit on a pro-rata basis.
+The recoverable amount of an asset or cash-generating
+unit (as defined below) is the higher of its value in use
+and its fair value less costs to sell. In assessing value in
+use, the estimated future cash flows are discounted to
+their present value using a pre-tax discount rate that
+reflects current market assessments of the time value
+of money and the risks specific to the asset or the
+cash-generating unit for which the estimates of future
+cash flows have not been adjusted. For the purpose of
+impairment testing, assets are grouped together into
+the smallest group of assets that generates cash inflows
+from continuing use that are largely independent of the
+cash inflows of other assets or groups of assets (the
+"cash-generating unit").
+Financial instruments
+Impairment of non-financial assets other than goodwill
+The carrying amounts of the Company's non-financial
+assets are reviewed at each reporting date to determine
+whether there is any indication of impairment. If any
+such indication exists, then the asset's recoverable
+amount is estimated in order to determine the extent of
+the impairment loss, if any.
+(65.8)
+(167.3)
+(645.2)
+Reclassified to assets held for Sale
+(9.6)
+(437.4)
+(5.0)
+(4.5)
+(490.4)
+(0.2)
+(38.2)
+(407.5)
+Depreciation expense
+Disposals
+5,922.7
+241.4
+74.1
+73.8
+4,837.4
+696.0
+37,178.4
+1,273.9
+256.5
+As at March 31, 2024
+30,973.4
+(0.1)
+4,496.6
+43,342.3
+895.4
+3,838.9
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+158
+Patient First. Always.
+8,620.0) towards cost of shares in a co-operative housing society and also includes
+1,133.0 Million (As at March 31, 2023: 1,133.0 Million) towards cost of
+(i) Buildings include 8,620.0 (As at March 31, 2023:
+1.1 Million (As at March 31, 2023: 1.1 Million) and
+non-convertible preference shares of face value of 10/- each and compulsorily convertible debentures of face value of 10,000/-
+each in a Company respectively entitling the right of occupancy and use of premises and also includes 4.5 Million (March 31, 2023:
+* 4.5 Million) towards cost of flats not registered in the name of the Company but is entitled to right of use and occupancy.
+(ii) The aggregate depreciation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.
+# (38)
+Footnotes
+** (9,687)
+720.0
+258.9
+34,965.9
+271.1
+614.5
+206.2
+320.7
+12,375.4 30,164.6
+11,782.4 28,820.6
+1,489.3
+1,419.6
+As at March 31, 2024
+As at March 31, 2023
+Carrying amount
+41,965.5
+1,347.8
+259.8
+45,101.0
+As at March 31, 2023
+(5.2)
+(1.0)
+63,786.5
+16,279.0
+1,489.3
+As at March 31, 2024
+(690.8)
+(0.2)
+for the year ended March 31, 2024
+(12.7)
+(582.7)
+(88.7)
+(1.3)
+(960.2)
+1,166.5
+(421.3)
+(6.9)
+(444.8)
+(9.2)
+4,679.4
+600.9
+139.2
+29.7
+3,676.0
+162.6
+71.0
+Reclassified to assets held for Sale
+Disposals
+(78.0)
+(274.7)
+518.7
+85,307.8
+(1.5)
+(4.0)
+(227.7)
+(40.5)
+Reclassified to assets held for Sale
+(210.7)
+(13.1)
+(96.9)
+(2.5)
+(98.2)
+(0.0)#
+Disposals
+2,067.8
+5,327.4
+61.1
+73.1
+4,467.5
+32,336.4
+1,065.1
+293.8
+769.1
+26,831.8
+3,376.6
+502.8
+Depreciation expense
+As at March 31, 2022
+Accumulated depreciation and impairment
+222.9
+NOTE: 3 (b) RIGHT-OF-USE ASSETS
+2,834.4
+Leasehold Land
+Leasehold land
+Furniture and fixtures
+Computer Software
+Buildings
+Freehold land
+NOTE: 3 (c) ASSETS CLASSIFIED AS HELD FOR SALE
+For details of Ind AS 116 disclosure refer Note 48.
+Footnote
+As at March 31, 2024
+As at March 31, 2023
+Carrying amount
+785.3
+Office equipment
+407.9
+29.8
+As at March 31, 2024
+(0.5)
+(0.5)
+Reclassified to assets held for Sale
+(5.7)
+(5.7)
+Deletion
+167.8
+88.7
+72.2
+6.9
+347.6
+Depreciation expense
+Plant and equipment
+Net of accumulated depreciation and amortisation.
+1.2
+1.4
+100.7
+246.0
+0.4
+0.4
+8.3
+10.5
+0.4
+3.5
+4.1
+6.2
+Vehicles
+98.9
+in Million
+As at
+March 31, 2023
+March 31, 2024
+1.3
+As at
+2,049.1
+1,551.5
+105.8
+391.8
+2,231.5
+1,640.2
+190.4
+400.9
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+149.4
+623.7
+319.2
+281.1
+2.9
+Addition
+2,855.2
+1,959.4
+471.5
+424.3
+As at March 31, 2023
+(8.9)
+(8.9)
+Reclassified to assets held for Sale
+(14.7)
+(14.7)
+2.9
+Deletion
+113.8
+2.7
+2,762.3
+1,959.4
+372.4
+430.5
+Addition
+As at March 31, 2022
+At cost
+Total
+Plant and
+equipment
+Building
+116.5
+Deletion
+(21.0)
+(21.0)
+23.4
+As at March 31, 2023
+(0.6)
+(0.6)
+Reclassified to assets held for Sale
+(10.8)
+(10.8)
+Deletion
+183.4
+88.7
+87.7
+7.0
+Depreciation expense
+451.7
+230.5
+204.2
+17.0
+As at March 31, 2022
+Accumulated depreciation
+Additions
+1,959.4
+453.4
+421.6
+As at March 31, 2024
+(2.7)
+(2.7)
+Reclassified to assets held for Sale
+in Million
+82,279.4
+157
+462.7
+Onerous contracts
+A provision for restructuring is recognised when the
+Company has a detailed formal restructuring plan and
+has raised a valid expectation in those affected that it
+will carry out the restructuring by starting to implement
+the plan or announcing its main features to those
+affected by it. The measurement of a restructuring
+provision includes only the direct expenditure arising
+from the restructuring, which are those amounts that
+are both necessarily entailed by the restructuring and
+not associated with the ongoing activities of the entity.
+Restructuring
+If the effect of the time value of money is material,
+provisions are determined by discounting the expected
+future cash flows at a pre-tax rate that reflects current
+market assessments of the time value of money and the
+risks specific to the liability. Where discounting is used,
+the increase in the provision due to the passage of time
+is recognised as a finance cost.
+Provisions, contingent liabilities and contingent assets
+Provisions are recognised when the Company has a
+present obligation (legal or constructive) as a result of
+past event, it is probable that an outflow of resources
+embodying economic benefits will be required to
+settle the obligation and a reliable estimate can be
+made of the amount of obligation. When the Company
+expects some or all of a provision to be reimbursed,
+for example, under an insurance contract, the
+reimbursement is recognised as a separate asset, but
+only when the reimbursement is certain. The expense
+relating to a provision is presented in the statement of
+profit and loss net of any reimbursement.
+The factors that the Company considers in determining
+the allowance for slow moving, obsolete and other
+non-saleable inventory include estimated shelf life,
+planned product discontinuances, price changes,
+ageing of inventory and introduction of competitive
+new products, to the extent each of these factors
+impact the Company's business and markets. The
+Company considers all these factors and adjusts the
+inventory provision to reflect its actual experience on a
+periodic basis.
+m.
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+152
+Present obligations arising under onerous contracts are
+recognised and measured as provisions. An onerous
+contract is considered to exist where the Company
+has a contract under which the unavoidable costs of
+meeting the obligations under the contract exceed
+the economic benefit expected to be received from
+the contract.
+Patient First. Always.
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade, stores
+and spares and finished goods are measured at the
+lower of cost and net realisable value. The cost of all
+categories of inventories is based on the weighted
+average method. Cost of raw materials and packing
+materials, stock-in-trade, stores and spares includes
+cost of purchases and other costs incurred in bringing
+the inventories to its present location and condition.
+Cost of work-in-progress and finished goods comprises
+direct material, direct labour, amortisation and
+depreciation of intangible / tangible assets and an
+appropriate proportion of other variable and fixed
+overhead expenditure.
+Inventories
+Rental income from operating lease is generally
+recognised on a straight-line basis over the term of the
+relevant lease. Where the rentals are structured solely
+to increase in line with expected general inflation to
+compensate for the Company's expected inflationary
+cost increases, such increases are recognised in the
+year in which such benefits accrue. Initial direct costs
+incurred in negotiating and arranging an operating lease
+are added to the carrying amount of the leased asset
+and recognised over the lease term on the same basis
+as rental income. Contingent rents are recognised as
+revenue in the period in which they are earned.
+Company as a lessor
+The Company applies the short-term lease recognition
+exemption to its short-term leases (i.e., those leases
+that have a lease term of 12 months or less from the
+commencement date and do not contain a purchase
+option). It also applies the lease of low-value assets
+recognition exemption to leases that are considered to
+be low value. Lease payments on short-term leases and
+leases of low-value assets are recognised as expense on
+a straight-line basis over the lease term.
+Company as a lessee
+The Company assesses at contract inception whether a
+contract is, or contains, a lease. That is, if the contract
+conveys the right to control the use of an identified
+asset for a period of time in exchange for consideration.
+Leases
+is no longer expected to occur, the gain or loss
+accumulated in equity is recognised immediately in
+profit or loss.
+I.
+k.
+If the hedging instrument expires or is sold,
+terminated or exercised or if its designation as a
+hedge is revoked, or when the hedge no longer
+meets the criteria for hedge accounting, any
+cumulative gain or loss previously recognised in
+OCI remains separately in equity until the forecast
+transaction occurs or the foreign currency firm
+commitment is met. When a forecast transaction
+Net realisable value is the estimated selling price in the
+ordinary course of business, less the estimated costs of
+completion and costs necessary to make the sale.
+The effective portion of changes in the fair value
+of the hedging instrument is recognised in OCI in
+the cash flow hedge reserve, while any ineffective
+portion is recognised immediately in profit or loss.
+The Company uses forward currency contracts
+as hedges of its exposure to foreign currency risk
+in forecast transactions and firm commitments.
+Amounts recognised as OCI are transferred
+to profit or loss when the hedged transaction
+affects profit or loss, such as when a forecast
+sale occurs. When the hedged item is the cost of
+a non-financial asset or non-financial liability, the
+amounts recognised as OCI are transferred to the
+initial carrying amount of the non-financial asset
+or liability.
+n.
+(i)
+A contract asset is the right to consideration in
+exchange for goods or services transferred to the
+customer. If the Company performs by transferring
+goods or services to a customer before the customer
+pays consideration or before payment is due, a contract
+asset is recognised for the earned consideration
+that is conditional. Contract assets are subject to
+impairment assessment.
+Contract assets
+Contract balances
+The Company accounts for sales returns accrual by
+recording an allowance for sales returns concurrent
+with the recognition of revenue at the time of a
+product sale. This allowance is based on the Company's
+estimate of expected sales returns. With respect
+to established products, the Company considers
+its historical experience of sales returns, levels of
+inventory in the distribution channel, estimated
+shelf life, product discontinuances, price changes
+of competitive products, and the introduction of
+competitive new products, to the extent each of
+these factors impact the Company's business and
+markets. With respect to new products introduced
+by the Company, such products have historically
+been either extensions of an existing line of product
+where the Company has historical experience or in
+therapeutic categories where established products
+exist and are sold either by the Company or the
+Company's competitors.
+Sales returns
+Revenues include amounts derived from product out-
+licensing agreements. These arrangements typically
+consist of an initial up-front payment on inception of
+the license and subsequent payments dependent on
+achieving certain milestones in accordance with the
+terms prescribed in the agreement. Non-refundable up-
+front license fees received in connection with product
+out-licensing agreements are deferred and recognised
+over the period in which the Company has continuing
+performance obligations. Milestone payments which
+are contingent on achieving certain clinical milestones
+are recognised as revenues either on achievement
+of such milestones, if the milestones are considered
+substantive, or over the period the Company has
+continuing performance obligations, if the milestones
+are not considered substantive.
+Out-licensing arrangements
+Revenue in an amount equal to the base purchase
+price is recognised in these transactions upon delivery
+of products to the business partners. An additional
+amount representing the profit share component is
+recognised as revenue only to the extent that it is
+highly probable that a significant reversal will not occur.
+sells its products to the business partners at a base
+purchase price agreed upon in the arrangement and is
+also entitled to a profit share which is over and above
+the base purchase price. The profit share is typically
+dependent on the ultimate net sale proceeds or net
+profits, subject to any reductions or adjustments that
+are required by the terms of the arrangement.
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+153
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+Financial Statements
+Standalone
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+The Company from time to time enters into
+arrangements for the sale of its products in certain
+markets. Under such arrangements, the Company
+Profit Sharing Revenues
+In determining the transaction price, the Company
+considers the effects of variable consideration, the
+existence of significant financing components, non-
+cash consideration, and consideration payable to the
+customer (if any). The Company estimates variable
+consideration at contract inception until it is highly
+probable that a significant revenue reversal in the
+amount of cumulative revenue recognised will not
+occur when the associated uncertainty with the
+variable consideration is subsequently resolved.
+Revenue from contracts with customers is recognised
+when control of the goods or services are transferred
+to the customer at an amount that reflects the
+consideration to which the Company expects to be
+entitled in exchange for those goods or services.
+The Company has generally concluded that it is the
+principal in its revenue arrangements, since it is the
+primary obligor in all of its revenue arrangement, as
+it has pricing latitude and is exposed to inventory and
+credit risks. Revenue is stated net of goods and service
+tax and net of returns, chargebacks, rebates and other
+similar allowances. These are calculated on the basis
+of historical experience and the specific terms in the
+individual contracts.
+Sale of goods
+Revenue
+Contingent assets are not recognised in the financial
+statements. A contingent asset is disclosed where an
+inflow of economic benefits is probable. Contingent
+assets are assessed continually and, if it is virtually
+certain that an inflow of economic benefits will arise,
+the asset and related income are recognised in the
+period in which the change occurs.
+Present obligations arising from past events where
+it is not probable that an outflow of resources will
+be required to settle the obligation or a reliable
+estimate of the amount of the obligation cannot
+be made.
+Possible obligations which will be confirmed only
+by future events not wholly within the control of
+the Company, or
+(ii)
+Statutory Reports
+Trade receivables
+(ii) Cash flow hedges
+Fair value hedges
+150
+Patient First. Always.
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL when the
+financial liability is held for trading or is designated
+upon initial recognition as at fair value through profit or
+loss. Financial liabilities are classified as held for trading
+if they are incurred principally for the purpose of
+repurchasing in the near term or on initial recognition it
+is part of a portfolio of identified financial instruments
+that the Company manages together and has a recent
+actual pattern of short-term profit-taking. This category
+also includes derivative financial instruments that
+are not designated as hedging instruments in hedge
+relationships as defined by Ind AS 109. Gains or losses
+on liabilities held for trading are recognised in the
+statement of profit and loss.
+All financial liabilities are subsequently measured at
+amortised cost using the effective interest method or
+at FVTPL.
+Subsequent measurement
+The Company's financial liabilities include trade and
+other payables, loans and borrowings including bank
+overdrafts and lease liabilities, financial guarantee
+contracts and derivative financial instruments.
+All financial liabilities are recognised initially at fair
+value and, in the case of loans and borrowings and
+payables, net of directly attributable transaction costs.
+Initial recognition and measurement
+Repurchase of the Company's own equity instruments
+is recognised and deducted directly in equity. No gain
+or loss is recognised in the statement of profit and
+loss on the purchase, sale, issue or cancellation of the
+Company's own equity instruments.
+An equity instrument is any contract that evidences
+a residual interest in the assets of an entity after
+deducting all of its liabilities. Equity instruments issued
+by a Company are recognised at the proceeds received,
+net of direct issue costs.
+Equity instruments
+Debt and equity instruments issued by a Company
+are classified as either financial liabilities or as equity
+in accordance with the substance of the contractual
+arrangements and the definitions of a financial liability
+and an equity instrument.
+Corporate Overview Statutory Reports
+Financial liabilities and equity instruments
+Classification as debt or equity
+For debt instruments at fair value through OCI, the
+Company applies the low credit risk simplification. At
+every reporting date, the Company evaluates whether
+the debt instrument is considered to have low credit
+risk using all reasonable and supportable information
+that is available without undue cost or effort. In making
+that evaluation, the Company reassesses the internal
+credit rating of the debt instrument.
+In respect of other financial assets (e.g.: debt securities,
+deposits, bank balances etc.), the Company generally
+invests in instruments with high credit rating and
+consequently low credit risk. In the unlikely event that
+the credit risk increases significantly from inception
+of investment, lifetime ECL is used for recognising
+impairment loss on such assets.
+As a practical expedient, the Company uses a provision
+matrix to determine impairment loss allowance on
+portfolio of its trade receivables. The provision matrix is
+based on its historically observed default rates over the
+expected life of the trade receivables and is adjusted
+for forward-looking estimates. At every reporting date,
+the historical observed default rates are updated and
+changes in the forward-looking estimates are analysed.
+The Company follows 'simplified approach' for
+recognition of impairment loss allowance on trade
+receivables or any contractual right to receive cash or
+another financial asset. The application of simplified
+approach does not require the Company to track
+changes in credit risk. Rather, it recognises impairment
+loss allowance based on lifetime ECLs at each reporting
+date, right from its initial recognition.
+In accordance with Ind AS 109, the Company applies
+expected credit loss (ECL) model for measurement and
+recognition of impairment loss on the trade receivables
+or any contractual right to receive cash or another
+financial asset that result from transactions that are
+within the scope of Ind AS 115.
+Impairment of financial assets
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+149
+Financial Statements
+Standalone
+Statutory Reports
+Corporate Overview
+However, in certain cases, the Company may also
+consider a financial asset to be in default when internal
+or external information indicates that the Company
+is unlikely to receive the outstanding contractual
+amounts in full before taking into account any credit
+enhancements held by the Company. A financial asset is
+written off when there is no reasonable expectation of
+recovering the contractual cash flows.
+Changes in fair value of the designated portion
+of derivatives that qualify as fair value hedges
+are recognised in the statement of profit and loss
+immediately, together with any changes in the
+fair value of the hedged asset or liability that are
+attributable to the hedged risk.
+Financial Statements
+Standalone
+for the year ended March 31, 2024
+(i)
+Hedges that meet the strict criteria for hedge
+accounting are accounted for, as described below:
+At the inception of a hedge relationship, the Company
+formally designates and documents the hedge relationship
+to which the Company wishes to apply hedge accounting
+and the risk management objective and strategy for
+undertaking the hedge. The documentation includes the
+Company's risk management objective and strategy for
+undertaking hedge, the hedging/economic relationship,
+the hedged item or transaction, the nature of the risk being
+hedged, hedge ratio and how the entity will assess the
+effectiveness of changes in the hedging instrument's fair
+value in offsetting the exposure to changes in the hedged
+item's fair value or cash flows attributable to the hedged
+risk. Such hedges are expected to be highly effective in
+achieving offsetting changes in fair value or cash flows and
+are assessed on an ongoing basis to determine that they
+actually have been highly effective throughout the financial
+reporting periods for which they were designated.
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+151
+Financial Statements
+Standalone
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+• Hedges of a net investment in a foreign operation.
+• Cash flow hedges when hedging the exposure to
+variability in cash flows that is either attributable to
+a particular risk associated with a recognised asset
+or liability or a highly probable forecast transaction
+or the foreign currency risk in an unrecognised
+firm commitment
+Notes to the Standalone Financial Statements
+• Fair value hedges when hedging the exposure to
+changes in the fair value of a recognised asset or
+liability or an unrecognised firm commitment.
+Any gains or losses arising from changes in the fair
+value of derivatives are taken directly to profit or loss,
+except for the effective portion of cash flow hedges,
+which is recognised in OCI and later reclassified to
+profit or loss when the hedge item affects profit or
+loss or treated as basis adjustment if a hedged forecast
+transaction subsequently results in the recognition of a
+non-financial asset or non-financial liability.
+The Company uses derivative financial instruments,
+such as forward currency contracts, full currency swap,
+principal only swap, options and interest rate swaps to
+hedge its foreign currency risks and interest rate risks
+respectively. Such derivative financial instruments are
+initially recognised at fair value on the date on which a
+derivative contract is entered into and are subsequently
+re-measured at fair value at the end of each reporting
+period. Derivatives are carried as financial assets when
+the fair value is positive and as financial liabilities when
+the fair value is negative.
+Derivative financial instruments and hedge accounting
+Initial recognition and subsequent measurement
+a change in the business model for managing those
+assets. Changes to the business model are expected
+to be infrequent. The Company's senior management
+determines change in the business model as a result
+of external or internal changes which are significant to
+the Company's operations. Such changes are evident to
+external parties. A change in the business model occurs
+when the Company either begins or ceases to perform
+an activity that is significant to its operations. If the
+Company reclassifies financial assets, it applies the
+reclassification prospectively from the reclassification
+date which is the first day of the immediately next
+reporting period following the change in business
+model. The Company does not restate any previously
+recognised gains, losses (including impairment gains or
+losses) or interest.
+The Company determines classification of financial
+assets and liabilities on initial recognition. After
+initial recognition, no reclassification is made for
+financial assets which are equity instruments and
+financial liabilities. For financial assets which are debt
+instruments, a reclassification is made only if there is
+Reclassification of financial assets
+A financial liability is derecognised when the obligation
+under the liability is discharged or cancelled or
+expires. When an existing financial liability is replaced
+by another from the same lender on substantially
+different terms, or the terms of an existing liability
+are substantially modified, such an exchange or
+modification is treated as the de-recognition of the
+original liability and the recognition of a new liability.
+The difference between the carrying amount of the
+financial liability derecognised and the consideration
+paid and payable is recognised in the statement of
+profit and loss.
+De-recognition
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using the
+EIR method. Amortised cost is calculated by taking
+into account any discount or premium on acquisition
+and fees or costs that are an integral part of the EIR.
+The EIR amortisation is included as finance costs in the
+statement of profit and loss.
+Financial liabilities that are not held-for-trading and are
+not designated as at FVTPL are measured at amortised
+cost in subsequent accounting periods. The carrying
+amounts of financial liabilities that are subsequently
+measured at amortised cost are determined based
+on the effective interest rate (EIR) method. Interest
+expense that is not capitalised as part of costs of an
+asset is included in the 'Finance costs' line item in the
+statement of profit and loss.
+Financial liabilities subsequently measured at amortised
+cost
+Financial liabilities designated upon initial recognition at
+fair value through profit or loss are designated as such at
+the initial date of recognition, and only if the criteria in Ind
+AS 109 are satisfied. For instruments not held-for-trading
+financial liabilities designated as at FVTPL, fair value
+gains/losses attributable to changes in own credit risk are
+recognised in OCI, unless the recognition of the effects of
+changes in the liability's credit risk in OCI would create or
+enlarge an accounting mismatch in profit or loss, in which
+case these effects of changes in credit risk are recognised
+in profit or loss. These gains/loss are not subsequently
+transferred to profit or loss. All other changes in fair value
+of such liability are recognised in profit or loss.
+For the purpose of hedge accounting, hedges are
+classified as:
+A receivable represents the Company's right to an
+amount of consideration that is unconditional (i.e., only
+the passage of time is required before payment of the
+consideration is due).
+Contract liabilities
+A contract liability is the obligation to transfer goods
+or services to a customer for which the Company has
+received consideration (or an amount of consideration
+is due) from the customer. If a customer pays
+consideration before the Company transfers goods
+or services to the customer, a contract liability is
+recognised when the payment is made or the payment
+is due (whichever is earlier). Contract liabilities are
+recognised as revenue when the Company performs
+under the contract
+Disposals
+Additions
+1,409.6
+As at March 31, 2022
+Total
+in Million
+418.7
+Office
+equipment
+Vehicles
+Furniture
+and fixtures
+Plant and
+equipment
+including
+given on
+lease
+10.0
+Freehold
+land
+At cost or deemed cost
+NOTE: 3 (a) PROPERTY, PLANT AND EQUIPMENT
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Ministry of Corporate Affairs ("MCA") notifies new
+standards or amendments to the existing standards
+under Companies (Indian Accounting Standards)
+Rules as issued from time to time. During the year
+ended March 31, 2024, MCA has not notified any new
+standards or amendments to the existing standards
+applicable to the Company.
+Recent Accounting pronouncements
+Exceptional items refer to items of income or expense,
+including tax items, within the statement of profit and
+loss from ordinary activities which are non-recurring
+and are of such size, nature or incidence that their
+separate disclosure is considered necessary to explain
+the performance of the Company.
+Exceptional items
+Buildings
+management reviews each material tax benefit and
+reflects the effect of the uncertainty in determining the
+related taxable amounts.
+16,084.9
+268.8
+1,120.9
+1,156.4
+61,138.0
+16,214.3
+1,419.6
+(476.3)
+(1.4)
+(2.7)
+(4.4)
+(328.4)
+(139.4)
+As at March 31, 2023
+Reclassified to assets held for Sale
+58,907.2
+(251.5)
+(103.7)
+(3.1)
+(130.5)
+(0.0)*
+3,285.7
+177.9
+96.3
+43.0
+2,689.7
+79,721.5
+1,726.1
+472.8
+(14.2)
+t.
+S.
+Accruals for uncertain tax positions require
+management to make judgements of potential
+exposures. Accruals for uncertain tax positions are
+measured using either the most likely amount or the
+expected value amount depending on which method
+the entity expects to better predict the resolution of
+the uncertainty. Tax benefits are not recognised unless
+the management based upon its interpretation of
+applicable laws and regulations and the expectation of
+how the tax authority will resolve the matter concludes
+that such benefits will be accepted by the authorities.
+Once considered probable of not being accepted,
+Short-term and Other long-term employee benefits
+Accumulated leave, which is expected to be utilised
+within the next 12 months, is treated as short-term
+employee benefit. The Company measures the
+expected cost of such absences as the additional
+amount that it expects to pay as a result of the unused
+entitlement that has accumulated at the reporting date.
+Termination benefits are recognised as an expense in
+the statement of profit and loss when the Company is
+demonstrably committed, without realistic possibility
+of withdrawal, to a formal detailed plan to either
+terminate employment before the normal retirement
+date, or to provide termination benefits as a result of
+an offer made to encourage voluntary redundancy.
+Termination benefits for voluntary redundancies are
+recognised as an expense in the statement of profit
+and loss if the Company has made an offer encouraging
+voluntary redundancy, it is probable that the offer will
+be accepted, and the number of acceptances can be
+estimated reliably.
+Termination benefits
+in the period of a plan amendment. The net interest cost
+is calculated by applying the discount rate to the net
+balance of the defined benefit obligation and the fair
+value of plan assets. This cost is included in employee
+benefit expense in the statement of profit and loss.
+Actuarial gains and losses arising from experience
+adjustments and changes in actuarial assumptions are
+charged or credited to OCI in the period in which they
+arise and is reflected immediately in retained earnings
+and is not reclassified to profit or loss.
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method
+with actuarial valuations being carried out at the end
+of each annual reporting period. The present value
+of the defined benefit obligation is determined by
+discounting the estimated future cash outflows by
+reference to market yields at the end of the reporting
+period on government bonds. The currency and term
+of the government bonds shall be consistent with the
+currency and estimated term of the post-employment
+benefit obligations. The current service cost of the
+defined benefit plan, recognised in the statement of
+profit and loss as employee benefits expense, reflects
+the increase in the defined benefit obligation resulting
+from employee service in the current year, benefit
+changes, curtailments and settlements. Past service
+costs are recognised in the statement of profit and loss
+The Company operates a defined benefit gratuity plan
+which requires contribution to be made to a separately
+administered fund.
+Defined benefit plans
+Employee benefits
+q.
+The Company recognises government grants only
+when there is reasonable assurance that the conditions
+attached to them will be complied with, and the grants
+will be received. When the grant relates to an expense
+item, it is recognised as income on a systematic basis
+over the periods that the related costs, for which it is
+intended to compensate, are expensed. When the grant
+relates to an asset, the Company deducts such grant
+amount from the carrying amount of the asset.
+Government grants
+Interest income from a financial asset is recognised
+when it is probable that the economic benefits will
+flow to the Company and the amount of income can be
+measured reliably. Interest income is accrued on a time
+basis, by reference to the principal outstanding and at
+the effective interest rate applicable, which is the rate
+that exactly discounts estimated future cash receipts
+through the expected life of the financial asset to that
+asset's net carrying amount on initial recognition.
+The Company treats accumulated leave expected to be
+carried forward beyond twelve months, as long-term
+employee benefit for measurement purposes. Such
+long-term compensated absences are provided for
+based on the actuarial valuation using the projected
+unit credit method at the year-end. Actuarial gains/
+losses are immediately taken to the statement of profit
+and loss and are not deferred.
+Dividend income is recognised when the Company's
+right to receive the payment is established, which is
+generally when shareholders approve the dividend.
+Dividend and interest income
+0.
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+154
+Patient First. Always.
+Royalty revenue is recognised on an accrual basis
+in accordance with the substance of the relevant
+agreement (provided that it is probable that economic
+benefits will flow to the Company and the amount
+of revenue can be measured reliably). Royalty
+arrangements that are based on production, sales and
+other measures are recognised by reference to the
+underlying arrangement.
+Royalties
+Revenue from services rendered is recognised in the
+statement of profit and loss as the underlying services
+are performed. Upfront non-refundable payments
+received are deferred and recognised as revenue over
+the expected period over which the related services are
+expected to be performed.
+Rendering of services
+p.
+The Company's net obligation in respect of other long
+term employee benefits is the amount of future benefit
+that employees have earned in return for their service
+in the current and previous periods. That benefit is
+discounted to determine its present value.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Minimum Alternate Tax ('MAT') credit is recognised as
+deferred tax asset only when and to the extent there
+is convincing evidence that the Company will pay
+normal income tax during the period for which the MAT
+credit can be carried forward for set-off against the
+normal tax liability. MAT credit recognised as an asset is
+reviewed at each Balance Sheet date and written down
+to the extent the aforesaid convincing evidence no
+longer exists.
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+156
+Patient First. Always.
+• In respect of taxable temporary differences
+associated with investments in subsidiaries,
+associates and interests in joint ventures, when
+the timing of the reversal of the temporary
+differences can be controlled and it is probable that
+the temporary differences will not reverse in the
+foreseeable future.
+• When the deferred tax liability arises from the
+initial recognition of goodwill or an asset or liability
+in a transaction that is not a business combination
+and, at the time of the transaction, affects neither
+the accounting profit nor taxable profit or loss and
+does not give rise to equal taxable and deductible
+temporary differences
+Deferred tax liabilities are recognised for all taxable
+temporary differences, except:
+Deferred tax assets are reviewed at each reporting
+date and are reduced to the extent that it is no longer
+probable that the related tax benefit will be realised.
+Withholding tax arising out of payment of dividends to
+shareholders under the Indian Income tax regulations is
+not considered as tax expense for the Company and all
+such taxes are recognised in the statement of changes
+in equity as part of the associated dividend payment.
+• In respect of deductible temporary differences
+associated with investments in subsidiaries,
+associates and interests in joint ventures, deferred
+tax assets are recognised only to the extent that it is
+probable that the temporary differences will reverse
+in the foreseeable future and taxable profit will be
+available against which the temporary differences
+can be utilised.
+• When the deferred tax asset relating to the
+deductible temporary difference arises from
+the initial recognition of an asset or liability in a
+transaction that is not a business combination and,
+at the time of the transaction, affects neither the
+accounting profit nor taxable profit or loss and
+does not give rise to equal taxable and deductible
+temporary differences.
+A deferred tax asset is recognised to the extent that it
+is probable that future taxable profits will be available
+against which the temporary difference can be
+utilised except:
+The Company recognises a deferred tax asset arising
+from unused tax losses or tax credits only to the
+extent that the entity has sufficient taxable temporary
+differences or there is convincing other evidence that
+sufficient taxable profit will be available against which
+the unused tax losses or unused tax credits can be
+utilised by the entity.
+Deferred tax is measured at the tax rates that are
+expected to be applied to the temporary differences
+when they reverse, based on the laws that have been
+enacted or substantively enacted by the end of the
+reporting period. Deferred tax assets and liabilities are
+offset if there is a legally enforceable right to set off
+corresponding current tax assets against current tax
+liabilities and the deferred tax assets and deferred tax
+liabilities relate to income taxes levied by the same tax
+authority on the Company.
+Deferred tax is recognised on temporary differences
+between the carrying amounts of assets and liabilities
+in the financial statements and the corresponding
+tax bases used in the computation of taxable profit.
+Deferred tax is not recognised for the temporary
+differences that arise on the initial recognition of assets
+or liabilities in a transaction that is not a business
+combination and that affects neither accounting nor
+taxable profits and taxable temporary differences
+arising upon the initial recognition of goodwill.
+Income tax expense consists of current and deferred
+tax. Income tax expense is recognised in the profit
+or loss except to the extent that it relates to items
+recognised in OCI or directly in equity, in which
+case it is recognised in OCI or directly in equity
+respectively. Current tax is the expected tax payable
+on the taxable profit for the year, using tax rates
+enacted or substantively enacted by the end of the
+reporting period, and any adjustment to tax payable in
+respect of previous years. Current tax assets and tax
+liabilities are offset where the Company has a legally
+enforceable right to offset and intends either to settle
+on a net basis, or to realise the asset and settle the
+liability simultaneously.
+Income tax
+The Company's contributions to defined contribution
+plans are recognised as an expense as and when the
+services are received from the employees entitling
+them to the contributions. The Company does not have
+any obligation other than the contribution made.
+Defined contribution plans
+r.
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+155
+Financial Statements
+Standalone
+Statutory Reports
+1,888.4
+214.0
+835.7
+Shares of 10 each fully paid
+3,028.0
+5,350.8
+3,589.4
+3,288.7
+March 31, 2023
+Year ended
+in Million
+Year ended
+March 31, 2024
+Other than internally generated
+NOTE: 4 (a) GOODWILL / OTHER INTANGIBLE ASSETS
+Closing balance
+Disposals
+(4,679.4)
+Capitalised
+Opening Balance
+NOTE: 3 (d) CAPITAL WORK-IN-PROGRESS
+The Company as a part of its ongoing initiative of network strategy and optimisation of manufacturing facilities has identified divestment of its
+Goa and Silvasa facility. The plan involves transferring above assets and liabilities to a prospective buyer. The transfer is expected to be completed
+during the year 2024-25 and hence, these have been classified as held for sale. These assets and liabilities have been carried at cost as the same is
+lower than the fair value expected out of sale.
+Footnote
+6.2
+6.3
+March 31, 2023
+6.2
+March 31, 2024
+6.3
+in Million
+As at
+As at
+159
+Lease liabilities
+Additions
+(3,286.0)
+(77.7)
+3,882.4
+(42.7)
+1,503.9
+635.9
+Additions
+92,312.2
+1,208.0
+87,149.8
+3,954.4
+As at March 31, 2023
+(7.9)
+(7.9)
+Reclassified to assets held for Sale
+Disposals
+89,466.0
+2,854.1
+2,295.9
+558.2
+Additions
+1,208.0
+84,853.9
+3,404.1
+As at March 31, 2022
+At cost or deemed cost
+Total
+Goodwill
+Product related
+intangibles
+Computer
+Software
+in Million
+3,288.7
+LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE
+2,139.8
+for the year ended March 31, 2024
+Financial Statements
+Standalone
+0.0
+15,479
+0.0
+15,479
+Sanghvi Properties Private Limited
+0.0
+20,865
+0.0
+20,865
+Flamboyawer Finance Private Limited
+0.0
+199,465
+Gujarat Sun Pharmaceutical Industries Private
+Limited
+(0.0)
+100,000
+Mrs. Kumud S. Shanghvi
+S. Shanghvi and Dilip S. Shanghvi are Trustees)
+0.1
+1,276,774
+0.1
+1,276,774
+Shanghvi Family & Friends Benefit Trust (Kumud
+0.1
+2,822,427
+0.1
+2,822,427
+0.0
+14,362
+0.0
+14,362
+Statutory Reports
+Corporate Overview
+in Million
+As at
+As at
+March 31, 2024
+Effective portion of cash flow hedges
+Foreign currency translation reserve
+Equity instrument through OCI
+Items of other comprehensive income (OCI)
+(B)
+Retained earnings
+General reserve
+Capital redemption reserve
+Amalgamation reserve
+Securities premium
+Capital reserve
+Reserves and surplus
+(A)
+NOTE: 21 OTHER EQUITY
+(ii) Change in shareholding during the year represents the transfer of 99,465 shares from Mrs. Kumud S. Shanghvi to Dilip Shantilal Shanghvi
+(i) Rights, Preference and Restrictions attached to equity shares: The equity shares of the Company, having par value of 1 per share, rank pari
+passu in all respects including voting rights and entitlement to dividend.
+Footnotes
+0.4
+10,400,850
+0.4
+10,400,850
+Unimed Investments Limited
+0.0
+Notes to the Standalone Financial Statements
+Vidhi D. Shanghvi
+Disposals
+(70.0)
+Common shares of no par value
+Sun Pharmaceutical Industries, Inc.
+Unquoted (At cost less impairment in value of investments, if any)
+Equity instruments
+* in Million
+As at March 31, 2023
+Quantity
+As at March 31, 2024
+Quantity *in Million
+NOTE: 5 (a) INVESTMENTS IN THE NATURE OF EQUITY IN SUBSIDIARIES (NON-CURRENT)
+5,240.4
+3,778.7
+(82.7)
+(1,561.1)
+Sun Farmaceutica do Brasil Ltda
+Closing Balance
+(35.9)
+Disposals
+(2,792.0)
+(596.0)
+3,454.0
+695.4
+4,697.0
+5,240.4
+Capitalised
+Additions
+Opening Balance
+March 31, 2023
+Impairment [Refer Note 55 (2) and 36]
+Quota of Capital Stock of Real 1 each fully paid
+Sun Pharma De Mexico, S.A. DE C.V.
+Common Shares of no Face Value
+311.9
+100.6
+146.0
+1,976.6
+1,907.2
+2,407.2
+2,365.1
+As at
+in Million
+As at
+March 31, 2024
+March 31, 2023
+13,485.8
+205.4
+17,101.1
+411.9
+13,691.2
+17,513.0
+11,575.5
+14,897.2
+7,808.4
+6,121.6
+40.3
+4,019
+18.3
+4,019
+304.2
+8,387,666
+304.2
+8,387,666
+Year ended
+(1.3)
+Year ended
+March 31, 2024
+NOTE: 4 (b) INTANGIBLE ASSETS UNDER DEVELOPMENT
+Amortisation expense
+(3.8)
+52,528.0
+50,524.5
+2,003.5
+As at March 31, 2023
+(3.8)
+Reclassified to assets held for Sale
+Disposals
+10,497.9
+10,001.3
+496.6
+Amortisation expense
+580.3
+42,033.9
+1,510.7
+As at March 31, 2022
+Accumulated amortisation and impairment
+94,375.2
+1,208.0
+88,583.7
+4,583.5
+As at March 31, 2024
+(5.5)
+(5.5)
+Reclassified to assets held for Sale
+(71.3)
+40,523.2
+9,335.4
+9,915.7
+Disposals
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+160
+Patient First. Always.
+(iii) The recoverable amount of Goodwill has been determined based on value in use calculations which uses cash flow projections covering
+generally a period of five years which are based on key assumptions such as margins, expected growth rates based on past experience and
+Management's expectations/ extrapolation of normal increase/ steady terminal growth rate and appropriate discount rates that reflects current
+market assessments of time value of money. The average growth rate used in extrapolating cash flows beyond the planning period was 5.0%
+for the year ended March 31, 2024 and 5.0% for the year ended March 31, 2023. Discount rate reflects the current market assessment of the
+risks specific to a CGU or group of CGUS. The discount rate is estimated on the weighted average cost of capital for respective CGU or group of
+CGUs. Discount rate used was 9.1% for the year ended March 31, 2024 and 9.4% for the year ended March 31, 2023. The management believes
+that any reasonable possible change in key assumptions on which recoverable amount is based is not expected to cause the aggregate carrying
+amount to exceed the aggregate recoverable amount of the cash generating unit.
+(i) The aggregate amortisation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.
+(ii) Refer Note 55 (1)
+Footnotes
+31,976.0
+39,784.2
+1,208.0
+1,208.0
+36,625.3
+28,764.6
+2,003.4
+As at March 31, 2024
+1,950.9
+As at March 31, 2023
+Carrying amount
+(3.4)
+62,399.2
+59,819.1
+2,580.1
+As at March 31, 2024
+(3.4)
+Reclassified to assets held for Sale
+(41.1)
+(40.8)
+(0.3)
+in Million
+in Million
+As at
+March 31, 2023
+0.1
+0.1
+3,844.0
+123.2
+234.6
+177.3
+109.9
+24.4
+7,695.5
+5,824.0
+* The Company is carrying an allowance of 500.0 Million (March 31, 2023: 500.0 Million) against Other receivables based on assessment
+regarding its future recoverability.
+NOTE: 19 OTHER ASSETS (CURRENT)
+Export incentives receivable
+Prepaid expenses
+5,486.5
+Advances for supply of goods and services
+Considered doubtful
+Less: Allowance for doubtful
+Balances with government authorities *
+Others
+* Includes balances of goods and service tax.
+NOTE: 20 EQUITY SHARE CAPITAL
+Authorised
+Equity shares of 1 each
+Cumulative preference shares of * 100 each
+Issued, subscribed and fully paid up
+Equity Shares of 1 each
+Reconciliation of the number of equity shares and amount
+outstanding at the beginning and at the end of reporting period
+Opening balance
+Considered good
+1,300.3
+1,390.9
+(500.0)
+Patient First. Always.
+166
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+NOTE: 18 OTHER FINANCIAL ASSETS (CURRENT)
+Interest accrued (unsecured, considered good)
+Security deposits (unsecured, considered good)
+Insurance claim receivable
+Other receivables
+Less: Allowance for doubtful balance*
+Refund due from government authorities
+Unbilled revenue (Refer Note 54)
+Derivatives not designated as hedges
+Derivatives designated as hedges
+As at
+in Million
+As at
+March 31, 2024
+231.6
+March 31, 2023
+261.0
+68.8
+93.8
+173.2
+1,890.9
+1,800.3
+(500.0)
+Closing balance
+* Loans have been granted for the purpose of their business.
+As at March 31, 2024
+Number of shares
+in Million
+2,399.3
+Year ended March 31, 2024
+Number of shares
+in Million
+Year ended March 31, 2023
+Number of shares
+* in Million
+2,399,334,970
+2,399,334,970
+2,399.3
+2,399.3
+2,399,334,970
+2,399,334,970
+2,399.3
+2,399.3
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+2,399.3
+Statutory Reports
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+Equity shares held by each shareholder holding more than 5
+percent equity shares in the Company are as follows:
+Shanghvi Finance Private Limited
+Dilip Shantilal Shanghvi
+167
+As at March 31, 2024
+Number of shares
+% of holding
+As at March 31, 2023
+Number of shares
+% of holding
+967,051,732
+230,385,155
+Financial Statements
+Standalone
+2,399,334,970
+2,399,334,970
+2,399.3
+2,399.3
+As at
+March 31, 2024
+As at
+115.1
+1,683.6
+March 31, 2023
+3.1
+1,402.4
+3,775.8
+3,126.2
+770.3
+718.9
+(770.3)
+(718.9)
+3,775.8
+3,126.2
+3,074.5
+2,742.8
+264.1
+8,913.1
+511.2
+7,785.7
+As at March 31, 2023
+Number of shares
+*in Million
+5,990,000,000
+100,000
+5,990.0
+5,990,000,000
+5,990.0
+10.0
+6,000.0
+100,000
+10.0
+6,000.0
+2,399,334,970
+2,399,334,970
+in Million
+2,877,280
+33,366.7
+33,470.3
+Loans to related parties (Refer Note 50 and 51) *
+Unsecured, considered good
+% of
+% Change
+holding during the year
+Number of
+shares
+As at March 31, 2024
+% of
+holding during the year
+% Change
+As at March 31, 2023
+40.3
+9.6
+967,051,732
+230,285,690
+670.8
+839.1
+490.3
+521.0
+Number of
+shares
+34,236.2
+(i) Inventory write downs are accounted considering the nature of inventory, estimated shelf life, planned product discontinuances, price changes,
+ageing of inventory and introduction of competitive new products as well as the provisioning policy. Write downs of inventories amounted
+to 9,820.3 Million (March 31, 2023: 8,345.9 Million). The impact of write downs are recognised in the statement of profit and loss. The
+inventories with overseas contract manufacturers are stated as per the quantitative confirmations received from the respective parties.
+(ii) The cost of inventories recognised as an expense is disclosed in Notes 32, 33 and 36 and as purchases of stock-in-trade in the statement of
+profit and loss.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+NOTE: 13 INVESTMENTS (CURRENT)
+Mutual funds
+Unquoted (Fair value through profit or loss)*
+Mirae Asset Cash Management Fund - Direct - Growth
+39,891.9
+Equity shares held by promoters / members of
+promoter group / person acting in concert
+Dilip Shantilal Shanghvi
+Shanghvi Finance Private Limited
+2,877,280
+Aalok D. Shanghvi
+0.4
+8,840,280
+0.4
+8,840,280
+Vibha D. Shanghvi
+1.2
+28,830,352
+1.2
+28,830,352
+Raksha S. Valia
+0.6
+14,345,019
+0.6
+14,345,019
+1.7
+9.6
+40.3
+230,285,690
+967,051,732
+40,153,960
+1.7
+40,153,960
+40.3
+0.0
+9.6
+230,385,155
+967,051,732
+Sudhir V. Valia
+Aditya Medisales Limited
+* Mutual funds have been fair valued at closing net asset value (NAV).
+6,429.4
+6,555.1
+NOTE: 14 TRADE RECEIVABLES
+Considered good
+3,252.7
+11.9
+3,264.6
+4,086.6
+16.2
+4,102.8
+As at
+March 31, 2024
+in Million
+As at
+March 31, 2023
+112.7
+6.6
+119.3
+103.4
+6.6
+110.0
+in Million
+As at
+As at
+March 31, 2024
+March 31, 2023
+in Million
+As at
+March 31, 2023
+Loans to employees / others
+0.7
+Unsecured, considered good
+125.0
+0.3
+103.3
+Credit impaired
+15.3
+15.3
+Less: Allowance for doubtful loans (expected credit loss allowance)
+(15.3)
+(15.3)
+125.7
+103.6
+Secured, considered good
+March 31, 2024
+As at
+(788.8)
+71,250.2
+Credit impaired
+Less: Allowance for credit impaired
+NOTE: 15 CASH AND CASH EQUIVALENTS
+Balances with banks
+In current accounts
+Cash on hand
+165
+As at March 31, 2024
+Quantity
+in Million
+As at March 31, 2023
+Quantity
+*in Million
+NOTE: 16 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 15 ABOVE
+Earmarked balances with banks
+Unpaid dividend accounts
+Balances held as margin money or security against guarantees and other commitments
+NOTE: 17 LOANS (CURRENT)
+842,638
+2,002.6
+2,002.6
+in Million
+As at
+As at
+March 31, 2024
+March 31, 2023
+88,341.6
+681.7
+89,023.3
+(681.7)
+88,341.6
+71,250.2
+788.8
+72,039.0
+Unsecured
+March 31, 2024
+330.0
+As at
+5,861.3
+Sun Pharma Japan Ltd
+Ordinary Shares of JPY 50,000 each fully paid
+1,200
+553.0
+1,200
+553.0
+Quoted (At cost less impairment in value of investments, if any)
+Zenotech Laboratories Limited
+Shares of 10 each fully paid
+Less: Impairment in value of investment
+42,014,578
+3,371.7
+(1,737.8)
+1,633.9
+52,481.8
+37.0
+42,014,578
+1,633.9
+52,481.8
+Preference shares - unquoted (At cost)
+Sun Pharma Holdings
+5% Optionally Convertible Preference Shares USD 1 each fully paid
+Less: Impairment in value of investment [Refer Note 55 (2)]
+1,165,593,148
+73,642.2 1,165,593,148
+73,642.2
+(16,945.2)
+56,697.0
+(16,945.2)
+56,697.0
+Sun Pharma Japan Ltd - Preference Shares
+Non-cumulative, redeemable preference Shares of JPY 50,000 each fully paid
+Sun Pharma (Netherlands) B.V.
+3,371.7
+(1,737.8)
+3,189,248
+37.0
+3,189,248
+Sun Pharma Holdings
+Shares of USD 1 each fully paid
+855,199,716
+Less: Impairment in value of investment [Refer Note 55 (2)]
+54,031.5 855,199,716
+(44,022.7)
+54,031.5
+(44,022.7)
+10,008.8
+10,008.8
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+As at March 31, 2024
+Quantity
+*in Million
+161
+As at March 31, 2023
+Quantity * in Million
+Sun Pharma (Netherlands) B.V.
+Ordinary class A shares of Euro 100 each fully paid
+5,473,340
+39,877.3
+5,473,340
+39,877.3
+Ranbaxy Malaysia Sdn. Bhd.
+Ordinary Shares of RM 1 each fully paid
+1,960
+0.1
+72.6
+72.6
+162
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+NOTE: 6 INVESTMENTS (NON-CURRENT)
+Equity instruments
+Quoted (Fair value through other comprehensive income)
+Krebs Biochemicals and Industries Limited
+Shares of 10 each fully paid
+Unquoted (Fair value through profit or loss)
+Enviro Infrastructure Co. Limited
+Patient First. Always.
+Shares of 10 each fully paid
+in Million
+As at March 31, 2023
+Quantity
+* in Million
+1,036,943
+63.3
+1,036,943
+58.5
+100,000
+1.0
+100,000
+1.0
+Shimal Research Laboratories Limited
+As at March 31, 2024
+Quantity
+245.1
+245.1
+Shares of 10 each fully paid
+245.1
+Non-cumulative optionally convertible class B shares of Euro 100 each fully paid
+1,707,212
+14,734.4
+1,707,212
+14,734.4
+71,504.0
+71,504.0
+123,985.8
+123,985.8
+Aggregate amount of unquoted investments before impairment
+Aggregate book value (carrying value) of quoted investments before impairment
+Aggregate amount of impairment in value of investments
+183,483.4
+183,483.4
+3,371.7
+3,371.7
+62,869.3
+Aggregate amount of quoted investments at market value
+2,483.5
+62,869.3
+1,977.2
+NOTE: 5 (b) INVESTMENTS IN THE NATURE OF EQUITY IN ASSOCIATES (NON-CURRENT)
+As at March 31, 2024
+Quantity in Million
+As at March 31, 2023
+Quantity * in Million
+Equity instruments
+Unquoted (At cost less impairment in value of investments, if any)
+Agatsa Software Private Limited
+8,538
+1,960
+Shares of 10 each fully paid
+10,000
+5,074.5
+0.1
+Foundation for Disease Elimination and Control of India
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+Neetnav Real Estate Private Limited
+Shares of 10 each fully paid
+Realstone Multitrade Private Limited
+Shares of 10 each fully paid
+Skisen Labs Private Limited
+10,000
+Shares of 10 each fully paid
+10,000
+0.1
+10,000
+0.1
+10,000
+0.1
+10,000
+0.1
+16,360,000
+163.6 16,360,000
+(163.6)
+163.6
+(163.6)
+Less: Impairment in value of investment
+0.1
+18.3
+750
+Faststone Mercantile Company Private Limited
+1.5
+1.5 40,050,000
+40,050,000
+Shares of 10 each fully paid
+Sun Pharma Laboratories Limited
+0.5
+1,000
+0.5
+1,000
+Shares of Bolivars (Bs.F.) 100 each, Bolivars (Bs.F.) 50 per share paid
+Sun Pharma De Venezuela, C.A.
+7.0
+700,000
+7.0
+700,000
+Shares of 10 each fully paid
+Green Eco Development Centre Limited
+36.5
+434,469
+36.5
+434,469
+Ordinary Shares of 100 Takas each fully paid
+Sun Pharmaceutical (Bangladesh) Limited
+3.3
+750
+3.3
+Softdeal Pharmaceuticals Private Limited
+5,074.5
+Shares of 10 each fully paid
+0.1
+Foreign currency translation reserve - Exchange differences relating to the translation of the results and the net assets
+of the Company's foreign operations from their functional currencies to the Company's presentation currency (i.e. *) are
+recognised directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange
+difference in the foreign currency translation reserve are reclassified to statement of profit or loss account on the disposal
+of the foreign operation.
+Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gains
+or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges.
+The cumulative gain or loss recognised and accumulated under the cash flow hedge reserve will be reclassified to profit
+or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial
+hedged item.
+NOTE: 22 BORROWINGS (NON-CURRENT)
+Loans from related party (Unsecured) (Refer Note 49 and 50)
+NOTE: 23 OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+Interest accrued (Refer Note 50)
+NOTE: 24 OTHER LIABILITIES (NON-CURRENT)
+Deferred revenue (Refer Note 54)
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+As at
+in Million
+As at
+March 31, 2024
+Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investment in
+equity instrument in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of
+equity instrument.
+March 31, 2023
+As at
+March 31, 2024
+10,772.0
+10,772.0
+As at
+March 31, 2024
+4,254.0
+4,254.0
+75,867.3
+75,867.3
+in Million
+As at
+March 31, 2023
+3,912.2
+3,912.2
+in Million
+As at
+March 31, 2023
+110,360.1
+110,360.1
+Retained earnings - The reserve is the profit/(loss) that the Company has earned/incurred till date, less any transfers to
+general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss /
+(gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.
+Capital redemption reserve The Company has recognised capital redemption reserve on buyback of equity shares from its
+retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.
+General reserve - The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies
+Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
+-
+March 31, 2023
+22,258.5
+11,874.1
+43.8
+7.5
+22,258.5
+11,874.1
+43.8
+7.5
+51,435.0
+127,310.4
+51,435.0
+127,908.8
+212,929.3
+213,527.7
+(10.2)
+21,543.5
+(13.3)
+21,543.5
+82.1
+26.4
+21,556.6
+235,084.3
+Refer statement of changes in equity for detailed movement in above balances.
+21,615.4
+234,544.7
+Patient First. Always.
+168
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+Nature and purpose of each reserve
+Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if
+any, is treated as capital reserve.
+Securities premium - The amount received in excess of face value of the equity shares is recognised in securities premium. In
+case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value
+of share is accounted as securities premium. It is utilised in accordance with the provisions of the Companies Act, 2013.
+Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.
+10,000
+9,340,000
+Less: Impairment in value of investment
+934.0 9,340,000
+(934.0)
+Derivatives designated as hedges
+(75.8)
+0.1
+67.2
+Deferred revenue
+2,793.7
+(616.2)
+(8.5)
+2,177.5
+Unbilled revenue
+11.1
+(6.2)
+4.9
+66.0
+Allowance for doubtful debts and advances
+(193.0)
+706.9
+Expenses claimed for tax purpose on payment basis
+1,359.4
+160.0
+(39.6)
+1,479.8
+Unabsorbed depreciation / carried forward losses
+5,542.3
+(473.7)
+5,068.6
+Other assets
+899.9
+31.5
+(11.0)
+45.5
+5,068.6
+(752.0)
+4,316.6
+0.8
+(0.3)
+0.5
+(75.0)
+75.0
+MAT credit entitlement
+10,323.9
+10,323.9
+(378.7)
+9,945.2
+(453.7)
+75.0
+9,945.2
+Deferred tax (liabilities) / assets in relation to:
+in Million
+Opening balance
+April 01, 2022
+Recognised in
+profit or loss
+Recognised in other
+comprehensive
+Closing balance
+March 31, 2023
+income
+Difference between written down value of property, plant and
+equipment, intangible assets and capital work-in-progress as per
+books of accounts and income tax
+(10,578.5)
+1,082.5
+(9,496.0)
+Difference in carrying value and tax base of financial assets of
+investments
+2.4
+Unabsorbed depreciation / carried forward losses
+Other assets
+(1.6)
+(59.1)
+3,352.7
+The unused tax credits will expire in financial year 2024-25 and unused tax capital losses will expire from financial year 2027-28 to financial year
+2030-31.
+NOTE: 10 INCOME TAX ASSETS (NET) (NON-CURRENT)
+Advance income tax
+*
+Net of provisions 19,150.7 Million (March 31, 2023: 13,689.7 Million)
+* includes amount paid under protest.
+NOTE: 11 OTHER ASSETS (NON-CURRENT)
+Capital advances
+Prepaid expenses
+Balances with government authorities
+* includes amount paid under protest.
+1,016.1
+NOTE: 12 INVENTORIES
+Raw materials and packing materials
+Goods in transit
+Work-in-progress
+Finished goods
+Stock-in-trade
+Stores and spares
+Footnotes
+in Million
+As at
+March 31, 2024
+5,033.8
+As at
+March 31, 2023
+5,861.3
+5,033.8
+Lower of cost and net realisable value
+6,514.4
+3,744.4
+32,745.3
+59.1
+MAT credit entitlement
+3,240.4
+7,083.5
+3,240.4
+7,024.4
+59.1
+10,323.9
+10,323.9
+Patient First. Always.
+164
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+As at
+March 31, 2024
+in Million
+As at
+March 31, 2023
+Deductible temporary differences, unused tax losses and unused tax credits for which no deferred
+tax assets have been recognised are attributable to the following:
+Tax losses
+Tax losses (Capital in nature)
+Unabsorbed depreciation
+Unused tax credits (MAT credit entitlement)
+Deductible temporary differences
+29,027.8
+19,554.8
+19,546.0
+29,252.6
+0.8
+1,473.2
+106.5
+(113.1)
+Loans to related parties (Refer Note 50 & 51)*
+Unsecured, considered good
+* Loans have been granted for the purpose of their business.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+283,500
+2.9
+283,500
+2.9
+2,771
+80.0
+68.8
+144.0
+Unsecured, considered good
+63.3
+63.3
+58.5
+940.0
+1,020.0
+934.5
+934.5
+As at
+in Million
+As at
+March 31, 2024
+March 31, 2023
+0.1
+1.4
+58.5
+Secured, considered good
+Loans to employees
+NOTE: 7 LOANS (NON-CURRENT)
+934.0
+(934.0)
+Shivalik Solid Waste Management Limited
+Shares of 10 each fully paid
+20,000
+0.2
+20,000
+0.2
+Biotech Consortium India Limited
+Shares of 10 each fully paid
+50,000
+0.5
+50,000
+0.5
+Less: Impairment in value of investment
+(0.5)
+(0.5)
+Nimbua Greenfield (Punjab) Limited
+Shares of 10 each fully paid
+140,625
+1.4
+140,625
+1.4
+Watsun Infrabuild Private Limited
+Shares of 10 each fully paid
+Agatsa Software Private Limited
+Shares of 10 each fully paid
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+Aggregate amount of unquoted investments before impairment
+Aggregate amount of impairment in value of investments
+8.2
+4.0
+33,860.7
+6,321.6
+570.5
+Recognised in other
+comprehensive
+income
+in Million
+Closing balance
+March 31, 2024
+(8,282.0)
+Difference in carrying value and tax base of financial assets of
+investments
+66.0
+1.2
+(1.7)
+65.5
+Derivatives designated as hedges
+(8.5)
+(0.1)
+(29.8)
+Deferred revenue
+2,177.5
+(400.3)
+(38.4)
+1,777.2
+Unbilled revenue
+4.9
+(4.9)
+Allowance for doubtful debts and advances
+706.9
+(19.5)
+687.4
+Expenses claimed for tax purpose on payment basis
+1,479.8
+31.6
+10,000
+31.6
+520.4
+426.0
+33,869.0
+6,327.0
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+NOTE: 8 OTHER FINANCIAL ASSETS (NON-CURRENT)
+Interest accrued (unsecured, considered good)
+Security deposits (unsecured, considered good)
+Unbilled revenue (Refer Note 54)
+Share application money pending allotment*
+Sun Pharmaceutical (Bangladesh) Limited
+NOTE: 9 DEFERRED TAX ASSETS (NET)
+Deferred tax (liabilities) / assets in relation to:
+Difference between written down value of property, plant and
+equipment, intangible assets and capital work-in-progress as per
+books of accounts and income tax
+Opening balance
+April 01, 2023
+Recognised in
+profit or loss
+(9,496.0)
+1,214.0
+163
+As at
+in Million
+As at
+March 31, 2024
+March 31, 2023
+101.4
+4.6
+387.4
+108.3
+9.6
+Inventories at the beginning of the year
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and hence
+not recognised as liability.
+3,250.9
+852.0
+22,681.4
+43.2
+52.8
+4,952.1
+4,504.2
+3,137.5
+3,444.5
+4,220.1
+2,360.1
+Printing and stationery
+Commission on sales
+Selling, promotion and distribution
+Insurance
+Rates and taxes
+Rent
+Power and fuel
+Conversion and other manufacturing charges
+Consumption of materials, stores and spare parts
+Repairs and maintenance
+in Million
+Year ended
+March 31, 2023
+875.8
+237.3
+Professional, legal and consultancy
+242.5
+119.5
+Provision / write off / (reversal) for doubtful trade receivables / advances
+297.2
+332.4
+Communication
+3,788.4
+20,939.2
+2,759.8
+1,994.2
+2,519.1
+Travelling and conveyance
+208.0
+652.8
+3,015.6
+3,716.1
+259.5
+Freight outward and handling charges
+14,126.3
+4,792.4
+4,721.8
+Contribution to provident and other funds
+Salaries, wages and bonus
+171
+NOTE: 34 EMPLOYEE BENEFITS EXPENSE
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+Staff welfare expenses
+(2,379.3)
+131.7
+(3,650.9)
+3,321.7
+168.3
+1,139.9
+(1,686.8)
+21,857.9
+20,054.7
+14,897.2
+1,803.2
+Year ended
+March 31, 2024
+* Includes gratuity expense of 467.4 Million (March 31, 2023: 412.4 Million)
+Year ended
+March 31, 2024
+4,346.6
+375.2
+in Million
+Year ended
+March 31, 2023
+7,840.8
+218.3
+7,622.5
+Year ended
+March 31, 2024
+NOTE: 36 OTHER EXPENSES
+Interest expense others (includes interest on income tax and lease liability)
+NOTE: 35 FINANCE COSTS
+Interest expense for financial liabilities carried at amortised cost
+394.8
+1,373.4
+19,801.3
+in Million
+Year ended
+March 31, 2023
+23,739.5
+492.3
+1,543.9
+21,703.3
+21,569.5
+839.1
+12,415.0
+8.8
+345.6
+292.4
+2,786.7
+26.0
+43.7
+4,070.6
+248.3
+314.6
+4,063.6
+41.4
+Year ended
+March 31, 2023
+NOTE: 38 TAX RECONCILIATION
+Miscellaneous income
+Receipts from research activities
+Less:
+Miscellaneous expenses
+Professional, legal and consultancy
+Communication
+Travelling and conveyance
+Year ended
+March 31, 2024
+4,260.0
+Printing and stationery
+37.9
+809.3
+563.6
+16.4
+15,980.1
+18,147.9
+905.1
+17.8
+16,560.1
+423.4
+7,121.3
+301.1
+19,070.8
+7,395.0
+1,541.1
+27.1
+101.5
+120.8
+14.4
+23.0
+484.2
+564.0
+70.8
+79.1
+24.0
+Loss on dissolution of subsidiary
+Repairs and maintenance
+Rates and taxes
+Reimbursement of expenses
+22.9
+12.0
+For other services
+34.8
+38.5
+For audit
+Payments to auditor (net of input credit, wherever applicable)
+6.5
+12.0
+Commission to Directors
+9.9
+11.2
+146.0
+Loss on sale / write off of property, plant and equipment and intangible assets, net
+Sitting fees to Directors
+272.6
+426.3
+Donations
+15.6
+Insurance
+4.0
+69.0
+Rent
+Power and fuel
+Consumption of materials, stores and spare parts
+Staff welfare expenses
+Contribution to provident and other funds
+Salaries, wages and bonus
+in Million
+NOTE: 37 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE STATEMENT OF PROFIT AND LOSS
+Impairment of property, plant and equipment, other intangible assets and intangible assets under
+development
+for the year ended March 31, 2024
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+172
+Patient First. Always.
+2,588.2
+61,784.3
+3,205.6
+67,972.2
+Miscellaneous expenses
+82.7
+Notes to the Standalone Financial Statements
+6,121.6
+7,808.4
+670.8
+11,575.5
+11,246.3
+19,478.6
+As at
+in Million
+33.2
+40,640.1
+7,188.1
+2,556.9
+2,153.5
+37,685.9
+4,545.3
+March 31, 2024
+218.6
+41.2
+36.7
+104.3
+113.5
+in Million
+As at
+March 31, 2023
+March 31, 2024
+As at
+59.4
+339.1
+106.0
+As at
+March 31, 2023
+1,566.7
+Year ended
+March 31, 2024
+8,095.0
+6,090.8
+6,637.7
+4,135.8
+1,457.3
+1,955.0
+As at
+March 31, 2023
+3,644.6
+March 31, 2024
+in Million
+3,437.7
+10.8
+1,157.0
+703.2
+63.0
+4,730.5
+831.9
+191.0
+As at
+198,435.3
+4,316.4
+202,751.7
+59.4
+March 31, 2023
+NOTE: 28 OTHER LIABILITIES (CURRENT)
+Derivatives not designated as hedge
+Payables to employee
+Product settlement, claims and trade commitments
+Payables on purchase of property, plant and equipment and other intangible assets
+Security deposits
+Unpaid dividends
+NOTE: 27 OTHER FINANCIAL LIABILITIES (CURRENT)
+Statutory remittances
+Unsecured
+Loans repayable on demand
+NOTE: 26 BORROWINGS (CURRENT)
+Employee benefits
+NOTE: 25 PROVISIONS (NON-CURRENT)
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+From Banks
+106.0
+Advance from customers (Refer Note 54)
+Other advance received
+March 31, 2024
+in Million
+As at
+As at
+2,061.6
+2,061.6
+2,197.3
+2,197.3
+March 31, 2023
+March 31, 2024
+Deferred revenue (Refer Note 54)
+in Million
+As at
+169
+* Includes government grants of 4,025.4 Million (March 31, 2023: 3,950.6 Million).
+Other operating revenues*
+Revenue from contracts with customers (Refer Note 54)
+NOTE: 30 REVENUE FROM OPERATIONS
+Others [Refer Note 52]
+Employee benefits
+NOTE: 29 PROVISIONS (CURRENT)
+As at
+in Million
+Year ended
+March 31, 2023
+203,946.3
+NOTE: 33 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+51,656.3
+44,293.8
+(17,513.0)
+(13,691.2)
+55,030.6
+40,472.0
+14,138.7
+Inventories at the beginning of the year
+17,513.0
+Purchases during the year
+March 31, 2023
+Year ended
+in Million
+Year ended
+March 31, 2024
+Raw materials and packing materials
+NOTE: 32 COST OF MATERIALS CONSUMED
+179.0
+Inventories at the end of the year
+2,790.3
+Finished goods
+Work-in-progress
+21,857.9
+14,897.2
+7,261.5
+970.8
+6.121.6
+839.1
+March 31, 2023
+Year ended
+* in Million
+Year ended
+March 31, 2024
+Stock-in-trade
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Stock-in-trade
+Finished goods
+Changes in inventories:
+Work-in-progress
+Stock-in-trade
+Finished goods
+Inventories at the end of the year
+Less:
+Work-in-progress
+135.7
+4,657.6
+61.4
+78.3
+1,640.1
+2,692.3
+Loans at amortised cost
+5.0
+26.1
+Bank deposits at amortised cost
+Interest income on:
+Year ended
+March 31, 2023
+Others [includes interest on income tax refund of 1,214.9 Million (March 31, 2023: 425.3 Million)]
+Year ended
+March 31, 2024
+NOTE: 31 OTHER INCOME
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+170
+Patient First. Always.
+4,175.1
+208,121.4
+in Million
+1,245.9
+556.9
+3,964.3
+1.5
+42.1
+Miscellaneous income
+Lease rental and hire charges
+Insurance claims
+0.4
+1.3
+Gain on derecognition of Right-of-use assets
+128.5
+215.6
+Sundry balances written back, net
+42.3
+Profit on sale / write off of property, plant and equipment and intangible assets, net
+173.0
+220.3
+Net gain on sale of financial assets measured at fair value through profit or loss
+2.2
+Net gain arising on financial assets measured at fair value through profit or loss
+2,202.0
+Year ended
+March 31, 2024
+in Million
+Year ended
+March 31, 2023
+Reconciliation of tax expense
+121,453.1
+82.9
+177.3
+2,265.4
+24.4
+1,300.3
+3,844.0
+265.6
+110.0
+75,926.7
+4,102.8
+31.6
+231.5
+519.8
+109.0
+39,688.3
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Derivatives not designated as hedges
+Lease liabilities
+71,250.2
+Product settlement, claims, recall charges and trade commitments
+3,912.2
+2,556.9
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Investments in equity - unquoted
+Investments in equity - quoted #
+Financial assets
+Financial assets and liabilities measured at fair value on a recurring basis at the
+end of each reporting period
+NOTE: 42 FAIR VALUE HIERARCHY
+for the year ended March 31, 2024
+31,255.8
+Notes to the Standalone Financial Statements
+Corporate Overview Statutory Reports
+153,683.1
+33.2
+33.2
+1,981.5
+218.6
+37,685.9
+41.2
+104.3
+Financial Statements
+Standalone
+Financial assets and liabilities measured at fair value on a recurring basis at the
+end of each reporting period
+Payables on purchase of property, plant and equipment and other intangible assets
+Unpaid dividends
+income
+other comprehensive Amortised cost
+Fair value through
+or loss
+Fair value
+through profit
+As at March 31, 2023
+in Million
+Investments
+Equity instruments - quoted
+Financial assets
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+176
+Patient First. Always.
+156,425.0
+1,803.0
+Lease liabilities
+for the year ended March 31, 2024
+Security deposits
+58.5
+2,088.1
+Payables to employee
+Trade payables
+Interest accrued
+Borrowings
+Financial liabilities
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Other receivables
+Equity instruments / mutual funds - unquoted
+Refund due from government authorities
+Bank balances other than cash and cash equivalents
+Cash and cash equivalents
+Trade receivables
+Share application money pending allotment
+Unbilled revenue
+Security deposits
+Loans to employees / others
+Loans to related parties
+Interest accrued
+4,545.3
+Financial assets
+Investments in equity - unquoted
+For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all
+other equity reserves attributable to the equity share holder's.
+The Company monitors capital on the basis of the carrying amount of debt as presented on the face of the financial
+statements. The Company's objective for capital management is to maintain an optimum overall financial structure.
+The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
+requirements of the financial covenants.
+• to provide an adequate return to shareholders through optimisation of debts and equity balance.
+• to ensure the Company's ability to continue as a going concern; and
+The Company's capital management objectives are:
+NOTE: 43 CAPITAL MANAGEMENT
+85.5
+(80.0)
+5.5
+(i) Debt equity ratio
+Reclassified as an investments in the nature of equity in associates due to increased ownership
+Balance at the end of the year
+5.5
+85.5
+Purchases during the year
+Balance at the beginning of the year
+Year ended
+March 31, 2023
+Year ended
+March 31, 2024
+in Million
+Unlisted shares valued at fair value
+80.0
+Reconciliation of Level 3 fair value measurements
+Debt (includes borrowings and lease liabilities)
+Debt to total equity ratio
+2.
+1. The Board of Directors at it's meeting held on May 22, 2024 has recommended payment of final dividend of 5.0
+per share of face value of 1 each for the year ended March 31, 2024. The same amounts to 11,996.7 Million.
+(iii) Dividends not recognised at the end of the reporting period
+Dividends are net of waiver, wherever applicable.
+17,995.0
+19,384.3
+Interim dividend for the year ended March 31, 2024 of 8.5 (year ended March 31, 2023: 7.5)
+per fully paid share
+7,198.0
+Total equity, including reserves
+9,597.3
+Year ended
+March 31, 2023
+in Million
+Year ended
+March 31, 2024
+0.33
+in Million
+As at
+March 31, 2023
+77,908.2
+237,483.6
+As at
+March 31, 2024
+112,269.1
+236,944.0
+0.47
+Dividend on equity shares
+(ii) Dividend on equity shares paid during the year
+Final dividend for the year ended March 31, 2023 of 4.0 (year ended March 31, 2022: 3.0)
+per fully paid share
+Investments in equity - quoted #
+for the year ended March 31, 2024
+Financial Statements
+Standalone
+in Million
+5.5
+344.5
+63.3
+109.9
+234.6
+5.5
+63.3
+Level 1
+Level 3
+Level 1
+in Million
+177
+Derivatives not designated as hedges
+Financial liabilities
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Mutual funds
+As at March 31, 2024
+Level 2
+Notes to the Standalone Financial Statements
+Level 3
+85.5
+Corporate Overview Statutory Reports
+178
+Patient First. Always.
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost
+approximates their fair value.
+There were no transfers between Level 1 and 2 in the periods.
+# These investments in equity instruments are not held for trading. Upon the application of Ind AS 109, the Company has chosen to designate these
+investments in equity instruments at fair value through other comprehensive income.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair
+value. The cost of unquoted investments approximates the fair value because there is wide range of possible fair value
+measurements and the costs represents estimate of fair value within that range.
+Level 3 inputs are unobservable inputs for the asset or liability.
+58.5
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
+either directly or indirectly.
+33.2
+33.2
+85.5
+201.7
+2,061.1
+24.4
+177.3
+2,002.6
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
+the measurement date.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Product settlement, claims, recall charges and trade commitments
+Payables on purchase of property, plant and equipment and other intangible assets
+e
+d
+3,474.2
+3,474.2
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit enjoyed
+by the Company
+C
+124.5
+132.8
+Other matters - state electricity board, Punjab Land Preservation Act related matters etc.
+Note: includes interest till the date of demand, wherever applicable
+Legal proceedings
+947.3
+Goods and service tax / Excise duty / service tax on account of valuation / cenvat credit / custom duty
+ESIC contribution on account of applicability
+138.1
+84.5
+Sales tax on account of rebate / classification
+2,831.6
+2,934.4
+Income tax on account of disallowances / additions (Company appeals) *
+Liabilities disputed - appeals filed with respect to:
+453.6
+b
+91.4
+The Company and/or its subsidiaries are involved in various legal proceedings, including but not
+limited to product liability claims, contract disputes, employment claims, antitrust matters, compliance
+matters, and other legal and regulatory matters relating to the conduct of its business. Some of the
+key matters are discussed below. Most of the legal proceedings involve complex issues, which are
+specific to the case and do not have precedents, and, hence, for a majority of these claims, it is not
+possible to make a reasonable estimate of the expected financial effect, if any, that will result from
+ultimate resolution of the proceedings. This is due to a number of factors, including the stage of the
+proceedings and the overall length of the discovery process; the entitlement of the parties to an action
+to appeal a decision; the extent of the claims, including the size of any potential class, particularly
+when damages are not specified or are indeterminate; the possible need for further legal proceedings
+to establish the appropriate amount of damages, if any; the settlement posture of the other
+parties to the litigation; and any other factors that may have a material effect on the litigation. The
+Company makes its assessment of likely outcomes based on the views of internal legal counsel and in
+consultation with external legal counsel representing the Company. The Company also believes that
+disclosure of the amount sought by plaintiffs would not be meaningful because historical evidence
+indicates that the amounts settled (if any) are significantly different than those claimed by plaintiffs.
+Some of the legal claims against the Company, if decided against the Company or settled by the
+Company, may result in significant impact on its standalone financial statements.
+March 31, 2024
+As at
+in Million
+* Income tax matters where department has preferred an appeal against favourable orders received by
+the Company amounted to ₹ 22,194.4 Million (March 31, 2023: 22,284.7 Million). These matters are
+sub-judice in various forums and pertains to various financial years.
+Future cash outflows in respect of the above matters are determinable only on receipt of judgements/
+decisions pending at various forums / authorities.
+Note:
+The Company may now be subject to "follow-on" claims in national courts of some countries in
+Europe. The Company has been served with a claim in the England & Wales, with the National Health
+Service ("NHS") as the Claimant, relating to the delayed entry of generic citalopram. The NHS's
+damages case is based upon the premise that, but for the anticompetitive behavior, the NHS would
+have been able to buy cheaper generic alternatives of citalopram, rather than paying Lundbeck
+(another co-defendant) the full innovator price. The Company is currently seeking for the claim to
+be struck out on the basis that the Claimants brought the claim out of time, and a preliminary issues
+hearing took place on April 24, 2024, to determine the issue. The parties are awaiting the outcome of
+that hearing. At this stage it is also unclear how many claims will actually be made in practice in other
+countries. Accordingly, at this early stage, the Company is unable to estimate the potential liability
+which may arise on account of follow-on claims. The Company also believes, based on its internal
+assessment and that of its independent legal counsel, that it has favorable legal arguments in terms of
+defending the relevant claim and any other potential future damages claims.
+By judgement dated 25 March 2021, the CJEU (highest European court) upheld the fine against
+Ranbaxy (U.K.) Limited and Ranbaxy Laboratories Limited in full and ruled that a settlement agreement
+between Ranbaxy and Lundbeck (and the other agreements between Lundbeck and the other
+defendants in the case) had been anticompetitive.
+91.0
+In June 2020, the Company and certain of its subsidiaries were named as defendants in a complaint filed
+in the Zantac/Ranitidine Multi-District Litigation ("MDL") consolidated in the U.S. District Court for the
+Southern District of Florida. The lawsuits name over 100 defendants, including brand manufacturers,
+generic manufacturers, repackagers, distributors, and retailers, involving allegations of injury caused by
+nitrosamine impurities. On July 08, 2021, the court granted the generic Defendants' motion to dismiss
+with prejudice. That decision is on appeal. In addition to the federal court proceedings, the Company
+and two of its affiliates were also named as defendants in state court actions pending in Pennsylvania,
+and California (actions previously pending in New York state court were voluntarily dismissed, and
+actions previously pending in Illinois state court were dismissed on the pleadings). Finally, certain of
+the Company's subsidiaries were named in various putative class actions pending in three Canadian
+provinces. The action pending in British Columbia is taking the lead and, in May 2023, the court in that
+action granted defendants' motion to strike and denied plaintiffs' motion for class certification.
+Citalopram follow damages claim in the UK:
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+174
+Patient First. Always.
+The Company and certain of its subsidiaries were named as defendants in a number of putative class
+action lawsuits and individual actions brought by purchasers and payors in the U.S. alleging that the
+subsidiaries violated antitrust laws in connection with a 2008 patent litigation settlement agreement
+with Pfizer concerning generic Lipitor (Atorvastatin). The cases have been transferred to the U.S. District
+Court for the District of New Jersey for coordinated pre-trial proceedings. Discovery commenced in
+January 2020 but was stayed in March 2020 pending mediation. Pursuant to the mediator's order of
+June 03, 2021, mediation briefing and oral argument on certain issues were completed in March 2022.
+Limited discovery as to certain issues resumed in July 2022. Briefing for class certification and summary
+judgement motions were completed in 2023. In late-November 2023, the court held argument on
+defendants' summary judgement motion and plaintiffs' class certification motions. Currently, the court
+has yet to issue a decision on either motion. There also was an antitrust case pending in West Virginia
+state court that mirrored the allegations in the federal case. In that case, by agreement of the parties Sun
+settled all claims against it, without any admissions, in the amount of USD 8.25 Million. The parties are in
+the process of finalising the written settlement agreement documentation.
+Antitrust - Lipitor:
+Product Liability - Ranitidine/Zantac MDL:
+As at
+March 31, 2023
+573.1
+Claims against the Company not acknowledged as debts
+Effect of reversal of Minimum Alternate Tax (MAT) credit entitlement*
+(15,494.9)
+(11,298.1)
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets
+444.2
+10,667.0
+135.2
+685.0
+Withholding tax in respect of income earned outside India
+Others
+6,083.9
+34.944%
+12,054.4
+17,410.5
+34,496.5
+Effect of expenses that are not deductible
+Income tax calculated at income tax rate
+#
+Income tax rate (%) applicable to the Company
+Profit before tax
+34.944%
+415.7
+5,154.7
+(816.5)
+5,914.7
+a
+Contingent liabilities
+i
+March 31, 2023
+March 31, 2024
+As at
+in Million
+As at
+NOTE: 39 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
+Income tax expense recognised in statement of profit and loss
+for the year ended March 31, 2024
+173
+Financial Statements
+Standalone
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+During the year, the Company has reassessed the utilisation of Minimum Alternate Tax ("MAT") credit, on the basis of this reassessment the
+Company has reversed MAT credit amounting to 5,154.7 Million.
+#The tax rate used for reconciliation above is the corporate tax rate of 34.944% (March 31, 2023: 34.944%) at which the Company is liable to pay
+tax on taxable income under the Indian Tax Law.
+(1,196.9)
+503.3
+Notes to the Standalone Financial Statements
+339.1
+ii
+a
+3,264.6
+88,341.6
+31.6
+456.2
+134.0
+40,290.1
+5.5
+63.3
+119.3
+income
+through profit
+or loss
+Fair value
+As at March 31, 2024
+in Million
+175
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Other receivables
+Fair value through
+other comprehensive Amortised cost
+333.0
+173.2
+5,486.5
+36.7
+Security deposits
+113.5
+Unpaid dividends
+2,153.5
+Payables to employee
+26,195.8
+Trade payables
+10,772.0
+Interest accrued
+110,466.1
+Borrowings
+Financial liabilities
+140,021.0
+173.2
+240.1
+234.6
+109.9
+1,390.9
+Refund due from government authorities
+Commitments
+Insurance claim receivables
+Bank balances other than cash and cash equivalents
+Year ended
+March 31, 2024
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Revenue, net (excluding depreciation) (Refer Note 37)
+Capital
+NOTE: 40 RESEARCH AND DEVELOPMENT EXPENDITURE
+1,197.4
+1,302.3
+Guarantees given by the bankers on behalf of the Company
+iii
+18,147.9
+* The Company is committed to pay milestone payments on certain contracts, however, obligation to
+pay is contingent upon fulfilment of contractual obligation by parties to the contract.
+527.9
+Letters of credit for imports
+с
+32,222.0
+10,720.1
+0.5
+*
+Estimated amount of contracts remaining to be executed on capital account [net of advances]
+Uncalled liability on partly paid investments
+b
+0.5
+1,496.3
+436.7
+As at March 31, 2023
+Level 2
+* in Million
+Cash and cash equivalents
+Trade receivables
+Share application money pending allotment
+Security deposits
+Loans to employees / others
+Loans to related parties
+Equity instruments - unquoted
+Equity instruments - quoted
+Investments
+Financial assets
+NOTE: 41 CATEGORIES OF FINANCIAL INSTRUMENTS
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Statutory Reports
+Corporate Overview
+507.0
+15,980.1
+Year ended
+March 31, 2023
+Interest accrued
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Income tax [Refer Note 2(2.2) (r)]
+EUR/USD
+As at
+Effect of changes in foreign exchange rates
+Deletions
+Interest on lease liabilities
+Additions
+Opening balance
+Movement of lease liabilities
+Later than five years
+Later than one year and not later than five years
+Not later than one year
+Lease liabilities - Maturity analysis - contractual undiscounted cashflows
+The Company has recognised a lease liability measured at the present value of the remaining lease payments, and
+right-of-use (ROU) asset at an amount equal to lease liability (adjusted for any related prepayments). Management
+has exercised judgement in determining whether extension and termination options are reasonably certain to be
+exercised. Expenses relating to short-term leases and low-value assets for year ended March 31, 2024 is 48.1 Million
+(March 31, 2023: 41.2 Million).
+a)
+NOTE: 48 LEASES
+187
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+March 31, 2024
+in Million
+As at
+March 31, 2023
+281.9
+327.6
+1,981.5
+1,803.0
+(348.1)
+(324.9)
+0.2
+* (0.0)
+(10.5)
+(16.7)
+172.8
+160.2
+The contribution expected to be made by the Company
+for gratuity, during financial year ending March 31, 2025 is
+1,556.4 Million (March 31, 2024: 1,104.1 Million)
+113.8
+1,981.5
+2.9
+Year ended
+March 31, 2023
+in Million
+Year ended
+March 31, 2024
+4,050.8
+3,670.4
+2,694.4
+2,482.4
+1,028.8
+906.1
+2,053.3
+(Funded with LIC, break-up not available)
+3,656.2
+3,873.0
+95.7
+4.4
+671.2
+96.3
+5.0
+823.8
+155.7
+4.6
+1,068.0
+156.6
+589.5
+4.1
+53.9
+(38.7)
+(48.8)
+(239.7)
+(258.9)
+262.3
+282.6
+272.6
+(243.8)
+(62.9)
+67.2
+42.6
+b)
+6.1
+624.3
+The major categories of plan assets are as under
+Insurer managed funds
+4,599.4
+1,686.0
+81.2
+4,686.7
+1,620.5
+69.8
+488.3
+90.1
+6.0
+94.4
+551.3
+6.4
+505.0
+92.1
+6.5
+595.6
+92.3
+5.6
+537.7
+94.0
+5.4
+90.0
+4.5
+Payment towards lease liabilities
+** (7,345)
+Pension
+Fund
+(Unfunded)
+Gratuity
+(Funded)
+Education
+(Unfunded)
+Pension
+Fund
+(Unfunded)
+e)
+Impairment of Investment in subsidiaries [Refer Note 2(2.2) (g)]
+d)
+Impairment of goodwill and intangible assets [Refer Note 2(2.2) (f)]
+c)
+Revenue [Refer Note 2(2.2)(n)]
+b)
+Litigations [Refer Note 2 (2.2) (m) and Note 39]
+a)
+The preparation of the Company's financial statements requires the management to make judgements, estimates and
+assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
+disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and
+underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
+in which the estimates are revised and in any future periods affected. In particular, information about significant areas of
+estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the
+amounts recognised in the financial statement is included in the following notes:
+NOTE: 53 USE OF ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
+(*) Includes provision for trade commitments, discounts, rebates, price reduction and product returns.
+6,637.7
+4,135.8
+At the end of the year
+(21,234.5)
+(3,937.6)
+(Unfunded)
+Education
+COVID-19
+Expense recognised in the statement of profit and loss
+(Refer Note 34)
+The Company has undertaken an obligation to provide financial support towards education expenses of the children of
+those employees who have lost their lives due to the COVID-19 pandemic.
+Risks
+These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk
+and salary risk.
+(i)
+(ii)
+Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate
+determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual
+return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by
+investment in LIC managed fund.
+Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially
+offset by an increase in the return on the plan's debt investments.
+(iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best
+estimate of the mortality of plan participants both during and after their employment. An increase in the life
+expectancy of the plan participants will increase the plan's liability.
+(iv) Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries
+of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Less: Utilisation / settlement / reversal / actualised
+Corporate Overview
+Financial Statements
+Standalone
+185
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+Other long term benefit plan
+Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company
+policy with corresponding charge to the statement of profit and loss amounting to 507.3 Million [March 31, 2023:
+*234.8 Million] and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of
+service and employee compensation.
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as
+at the year end using the 'Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating
+to defined benefit obligation are recognised in other comprehensive income whereas gains and losses in respect of
+other long term employee benefit plans are recognised in the statement of profit and loss.
+Year ended March 31, 2024
+*in Million
+Year ended March 31, 2023
+COVID-19
+Statutory Reports
+26,118.2
+1,754.0
+1,435.7
+Add: Provision for the year
+2023-24
+balance
+As at Maximum
+balance
+March
+balance
+Closing
+Maximum
+As at March 31, 2024
+Maturity date
+NOTE: 51 LOANS / ADVANCES GIVEN TO SUBSIDIARIES
+31, 2023
+for the year ended March 31, 2024
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+188
+Patient First. Always.
+No loans were due during the year. Further, the Company has not defaulted on interest payment during the year.
+NOTE: 50 RELATED PARTY DISCLOSURES (IND AS 24) AS PER ANNEXURE "A"
+Unsecured loan from related party of 110,360.1 Million (March 31, 2023: 75,867.3 Million). The loan was taken on
+March 31, 2021 and is repayable by March 31, 2026. The interest rate is 7.5 % p.a.
+(1)
+Details of long term borrowings:
+NOTE: 49 BORROWINGS
+The Company has given certain premises and plant and machinery under operating lease or leave and license
+agreements. These are generally not non-cancellable and periods range between 11 months to 5 years under leave
+and license/lease and are renewable by mutual consent on mutually agreeable terms. The Company has received
+refundable interest free security deposits where applicable in accordance with the agreed terms.
+Notes to the Standalone Financial Statements
+Closing balance
+2022-23
+(in
+Million)
+6,637.7
+At the commencement of the year
+March 31, 2024*
+Year ended
+in Million
+Year ended
+March 31, 2023*
+In respect of any present obligation as a result of past event that could lead to a probable outflow of resources, provisions
+have been made, which would be required to settle the obligation. The said provisions are made as per the best estimate of the
+management and disclosure as per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has been given below:
+NOTE: 52
+500.7 500.7
+500.7
+500.7
+8,340.0 8,340.0 8,216.5 8,216.5
+25,020.0 25,020.0 24,649.5 24,649.5
+174.4 174.4 159.2 159.2
+6,255.0 6,162.4 6,162.4
+March 24, 2027
+January 17, 2026
+February 09, 2029
+March 14, 2025
+November 21, 2024
+7.5%
+SOFR 3 months + 135 bps
+SOFR 3 months + 135 bps
+1 year G Sec + 50 bps
+SOFR 3 months + 125 bps 6,255.0
+These loans have been granted to the above entities for the purpose of their business.
+Rate of interest
+Sun Pharma (Netherlands) B.V., Netherlands
+Sun Pharmaceutical Inc. USA
+Sun Pharmaceutical Inc. USA
+60.0
+Realstone Infra Limited, India
+Zenotech Laboratories Limited, India
+Loans / advances outstanding from subsidiaries
+(in
+Million)
+Million)
+(in
+(in
+Million)
+Neetnav Realestate Private Limited, India
+(4.1)
+(264.7)
+295.4
+(62.4)
+66.3
+161.6
+23.1
+0.9
+- due to change in financial assumptions
+41.0
+(57.4)
+- due to change in demographic assumptions
+Actuarial (gains) / losses on obligations
+(224.3)
+(61.9)
+(1.3)
+(327.4)
+(61.2)
+(2.8)
+Benefits paid
+Obligations transferred
+265.4
+73.9
+5.0
+328.0
+76.0
+(2.7)
+(44.5)
+(76.7)
+- due to experience
+5,021.7
+in Million
+As at
+March 31, 2023
+Gratuity (Funded)
+Gratuity (Funded)
+March 31, 2024
+As at
+Net liability recognised in the financial statement
+Fair value of plan assets
+Present value of commitments (as per Actuarial Valuation)
+Reconciliation of liability recognised in the financial statement
+4,393.7
+4.9
+1,017.8
+5,021.7
+1,028.5
+62.5
+Obligation as at the year end
+79.5
+(21.9)
+(7.9)
+110.8
+(27.2)
+(6.3)
+65.8
+Interest cost
+373.5
+412.4
+Actuarial loss (gain) on defined benefit obligation
+recognised in other comprehensive income
+Remeasurement of defined benefit obligation
+412.4
+73.9
+5.0
+467.4
+76.0
+4.9
+Expense charged to the statement of profit and loss
+(5.4)
+(226.5)
+Expected return on plan assets
+265.4
+73.9
+5.0
+328.0
+76.0
+4.9
+Interest cost
+373.5
+412.4
+(273.0)
+(3,873.0)
+(4.1)
+(10.6)
+Current service cost
+3,935.3
+1,072.2
+72.7
+4,393.7
+1,017.8
+65.8
+Obligation as at the beginning of the year
+Reconciliation of defined benefit obligations
+other comprehensive income
+215.0
+(36.4)
+(10.6)
+314.6
+(4.1)
+(5.4)
+Expense (income) charged to
+(80.2)
+99.6
+Actuarial loss (gain) on plan assets
+43.8
+(66.4)
+(66.4)
+4,393.7
+(3,656.2)
+1,148.7
+737.5
+60
+N.A.
+N.A.
+N.A.
+N.A.
+N.A.
+Indian Assured Indian Assured Indian Assured
+Lives Mortality Lives Mortality Lives Mortality
+(2012-14)
+(2012-14)
+N.A. 12.26% - 14.00%
+N.A.
+N.A.
+N.A.
+(2012-14)
+N.A.
+N.A. 10.00% - 10.50%
+Indian Assured Indian Assured
+Lives Mortality Lives Mortality
+(2012-14) (2012-14)
+N.A.
+N.A.
+N.A.
+N.A.
+7.45%
+N.A.
+N.A.
+7.45%
+7.45%
+7.45%
+7.15%
+7.15%
+N.A.
+N.A.
+N.A. 10.54%-11.25%
+7.15%
+Indian Assured
+Lives Mortality
+(2012-14)
+N.A.
+(3.6)
+4.0
+5th year
+year
+4th
+3rd year
+2nd year
+1st year
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee turnover
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation for next
+Thereafter
+Delta effect of -1% change in discount rate
+N.A. 11.78% - 14.00%
+Delta effect of +1% change in discount rate
+in Million
+As at March 31, 2023
+Pension
+Fund
+COVID-19
+Education
+(Unfunded) (Unfunded)
+Gratuity
+(Funded)
+Impact on defined benefit obligation
+COVID-19
+Education
+(Unfunded) (Unfunded)
+As at March 31, 2024
+Pension
+Fund
+The sensitivity analysis have been determined based on
+method that extrapolates the impact on defined benefit
+obligation as a reasonable change in key assumptions occurring
+at the end of the reporting period
+Sensitivity analysis:
+60
+Gratuity
+(Funded)
+(c) COVID-19 Employee children education support
+7.15%
+Gratuity
+Year ended
+in Million
+Year ended
+March 31, 2024
+Retirement Age (years)
+Employee turnover
+Interest rate guarantee
+Mortality
+Expected rate of salary increase
+Expected return on plan assets
+Discount rate
+Assumptions:
+March 31, 2023
+Gratuity (Funded)
+Plan assets as at the year end
+Employer's contribution during the year
+Actuarial gain/(loss)
+Plan assets as at the beginning of the year
+Expected return
+Reconciliation of plan assets
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+186
+Patient First. Always.
+Benefits paid
+(Funded)
+Gratuity (Funded)
+3,358.6
+(Unfunded)
+Pension Fund
+As at March 31, 2023
+(Unfunded)
+(Unfunded)
+Education
+Gratuity
+(Funded)
+Pension Fund
+(Unfunded)
+Education
+COVID-19
+3,656.2
+COVID-19
+3,656.2
+3,873.0
+(224.3)
+(327.4)
+215.2
+370.8
+80.2
+(99.6)
+226.5
+273.0
+As at March 31, 2024
+Current service cost
+The Company has an obligation towards pension, a defined benefit retirement plan, with respect to certain employees,
+who had already retired before March 01, 2013 and will continue to receive the pension as per the pension plan.
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund Scheme.
+It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to specific benefit
+at the time of retirement or termination of the employment on completion of five years or death while in employment.
+The level of benefit provided depends on the member's length of service and salary at the time of retirement/termination
+age. Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year end. Each year,
+the Company reviews the level of funding in gratuity fund and decides its contribution. The Company aims to keep annual
+contributions relatively stable at a level such that the fund assets meets the requirements of gratuity payments in short to
+medium term.
+1-3 years
+More than 3 years
+in Million
+As at
+March 31, 2023
+1 year
+59.4
+31,255.8
+75,867.3
+75,926.7
+31,255.8
+166.4
+40,606.9
+72,088.5
+33.2
+33.2
+280.8
+3,912.2
+80,060.3
+1,534.3
+1,981.5
+1,534.3
+44,519.1
+153,683.1
+33.2
+33.2
+Market risk
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
+market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of
+market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable
+to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and
+long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk
+and the market value of its investments. Thus, the Company's exposure to market risk is a function of investing and
+borrowing activities and revenue generating and operating activities in foreign currencies.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Less than
+Derivatives
+Other financial liabilities
+Lease liabilities
+More than
+3 years
+As at
+March 31, 2024
+Non derivatives
+Borrowings
+Trade payables
+106.0
+26,195.8
+110,360.1
+110,466.1
+26,195.8
+Lease liabilities
+Corporate Overview
+133.9
+7,188.1
+33,623.8
+245.5
+10,772.0
+121,377.6
+1,423.6
+1,803.0
+1,423.6
+17,960.1
+156,425.0
+Non derivatives
+Borrowings
+Trade payables
+Other financial liabilities
+Statutory Reports
+Financial Statements
+Standalone
+181
+88,744.5
+7,045.1 3,913.6
+5,764.8 8,550.0
+7,060.7
+214.0
+121,078.7
+Financial liabilities
+Trade payables
+8,417.8
+Payables on purchase of property, plant
+and equipment and other intangible assets
+Product settlement, claims, recall charges
+and trade commitments
+0.4
+214.0
+1,266.3
+137.4
+4,545.3
+12,963.5 1,403.7
+148.6
+5.4
+579.5
+6.1
+10,417.6
+143.9
+4,545.3
+5.4
+585.6
+148.6
+1-3 years
+78,252.7
+2,997.0
+39,615.0
+Interest accrued
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+Foreign exchange risk
+The Company's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses (primarily
+in US Dollars, Euros, South African Rand, Brazilian Real and Russian Ruble). As a result, if the value of the Indian rupee
+appreciates relative to these foreign currencies, the Company's revenues and expenses measured in Indian rupees may
+decrease or increase and vice-versa. The exchange rate between the Indian rupee and these foreign currencies have
+changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the
+Company uses both derivative and non-derivative financial instruments, such as foreign exchange forward contracts,
+option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate the risk of changes in foreign
+currency exchange rates in respect of its highly probable forecasted transactions and recognised assets and liabilities.
+(a) Significant foreign currency risk exposure relating to trade receivables, other receivables, cash and cash equivalents
+and trade payables
+in Million
+Financial assets
+US Dollar
+Euro
+As at March 31, 2024
+Russian South African
+Ruble
+39,615.0
+Rand
+Others
+Total
+Trade receivables
+Cash and cash equivalents
+1,631.7
+47,283.8 6,225.8 3,819.5
+819.3
+94.1
+5,764.8
+8,550.0
+6,608.8
+451.9
+Loans to subsidiaries
+Brazilian
+Real
+15,106.8
+Less than
+1 year
+The table below provides details regarding the contractual maturities of significant financial liabilities:
+2-3 years
+3 years
+13,444.2
+16.3
+1,876.9
+57.3
+1,425.3
+871.4
+34.4
+475.5
+in Million
+As at March
+31, 2024
+88,341.6
+632.5
+50,990.2
+19,782.6 13,460.5
+1,934.2
+22.4
+1,482.1
+26.8
+1,373.7
+49.2
+89,023.3
+Not due
+35,257.6
+87.3
+Less than
+6 months
+23,437.8
+59.9
+6 months
+-1 year
+9,528.5
+55.2
+1-2 years
+More than
+6 months
+-1 year
+Less than
+6 months
+19,757.0
+25.6
+Corporate Overview Statutory Reports
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+179
+NOTE: 44 FINANCIAL RISK MANAGEMENT
+The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
+Company's risk management assessment and policies and processes are established to identify and analyse the risks faced
+by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk
+assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the
+Company's activities.
+Credit risk
+Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
+its contractual obligations, and arises principally from the Company's receivables from customers, loans and investments.
+Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness
+of counterparty to which the Company grants credit terms in the normal course of business.
+Investments
+More than
+The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that
+have a good credit rating. The Company does not expect any significant losses from non-performance by these counter-
+parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
+The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company
+uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and
+internal risk factors and historical data of credit losses from various customers.
+Financial assets for which loss allowances is measured using the expected credit loss method
+Trade receivables ageing
+Undisputed Trade receivables - considered good
+Undisputed Trade Receivables - credit impaired
+Disputed Trade Receivables - considered good
+Disputed Trade Receivables - credit impaired
+Trade receivables ageing
+Undisputed Trade receivables - considered good
+Undisputed Trade Receivables - credit impaired
+Disputed Trade Receivables - considered good
+Disputed Trade Receivables - credit impaired
+Footnotes
+Not due
+50,966.8
+23.4
+Trade receivables
+1-2 years
+2-3 years
+3 years
+in Million
+Year ended
+March 31, 2024
+Year ended
+March 31, 2023
+Movement in the expected credit loss allowance on trade receivables
+Balance at the beginning of the year
+Addition
+Recoveries/write-offs
+Balance at the end of the year
+788.8
+for the year ended March 31, 2024
+36.1
+681.7
+1,341.7
+253.7
+(806.6)
+788.8
+15.3 Million)
+Other than trade receivables, the Company has recognised an allowance of 15.3 Million (March 31, 2023:
+against past due loans/advance including interest and 500.0 Million (March 31, 2023: 500.0 Million) of other receivables
+based on assessment regarding its future recoverability.
+Liquidity risk
+Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
+manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
+due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.
+The Company has unutilised working capital lines from banks of 35,780.0 Million as on March 31, 2024
+(March 31, 2023: 35,780.0 Million).
+(143.2)
+in Million
+Notes to the Standalone Financial Statements
+Corporate Overview Statutory Reports
+1,722.8
+25.7
+407.8
+895.7
+27.7
+481.8
+in Million
+As at March
+31, 2023
+71,250.2
+737.6
+22.4
+28.8
+Financial Statements
+Standalone
+35,344.9
+9,583.7
+1,770.9
+435.5
+1,406.3
+51.2
+72,039.0
+Unbilled revenue as at March 31, 2024 is Nil (March 31, 2023:
+231.5 Million).
+Trade receivables from parties are non-interest bearing and are generally on terms of 10 to 270 days.
+Patient First. Always.
+180
+23,497.7
+in Million
+US Dollar
+Euro
+47.8
+Disputed dues of other than micro and small enterprises
+21,853.4
+2,826.2
+128.9
+90.9
+1,296.4
+26,195.8
+Not due
+Less than
+1 year
+1-2 years
+2-3 years
+More than
+3 years
+* in Million
+As at March
+31, 2023
+Outstanding dues of micro and small enterprises
+899.7
+Outstanding dues of other than micro and small enterprises
+21,800.0
+Disputed dues of micro and small enterprises
+3,259.5
+255.1
+399.8
+24.5
+1.8
+4.0
+6.1
+35.9
+March 31, 2024
+704.6
+March 31, 2023
+1,194.2
+Principal amount remaining unpaid to any supplier as at the end of the accounting year
+Interest of 0.4 Million paid during the year towards principal paid amounting to 10.8 Million to supplier registered
+under MSMED Act, beyond the appointed day during the year. There is no amount of interest accrued and remaining
+unpaid at the end of current accounting year / previous accounting year.
+(b) Trade payables ageing
+Not due
+Less than
+1 year
+More than
+1-2 years 2-3 years
+3 years
+Outstanding dues of micro and small enterprises
+217.3
+9.2
+656.8
+31, 2024
+656.8
+Outstanding dues of other than micro and small enterprises
+21,196.6
+2,790.3
+122.8
+86.9
+1,294.6
+25,491.2
+Disputed dues of micro and small enterprises
+in Million
+As at March
+4,385.0
+5.7
+899.7
+30,061.6
+294.5
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+NOTE: 47 EMPLOYEE BENEFITS
+Defined contribution plan
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC) and
+other Funds which covers all regular employees. While both the employees and the Company make predetermined contributions
+to the Provident Fund and ESIC, contribution to the Family Pension Fund and other Statutory Funds are made only by the
+Company. The contributions are normally based on a certain percentage of the employee's salary. Amount recognised as expense
+in respect of these defined contribution plans, aggregate to ₹1,064.0 Million (March 31, 2023: 951.9 Million).
+Contribution to Provident Fund and Family Pension Fund
+Contribution to Superannuation Fund
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+Contribution to Labour Welfare Fund
+Defined benefit plan
+Financial Statements
+Standalone
+(a)
+in Million
+Year ended
+March 31, 2024
+942.5
+Year ended
+March 31, 2023
+843.6
+76.5
+71.1
+43.5
+36.0
+1.5
+1.2
+Gratuity
+in Million
+As at
+Corporate Overview Statutory Reports
+Patient First. Always.
+Disputed dues of other than micro and small enterprises
+22,699.7
+3,514.6
+424.3
+226.5
+4,390.7
+31,255.8
+NOTE: 46 EARNINGS PER SHARE
+Profit/(loss) for the year (in Million) - used as numerator for calculating earnings per share
+Weighted average number of shares used in computing basic and diluted earnings per share
+184
+Year ended
+March 31, 2024
+Face value per share (in)
+Basic earnings per share (in )
+Diluted earnings per share (in )
+Year ended
+March 31, 2023
+16,907.2
+2,399,334,970
+1
+11.9
+1
+7.0
+11.9
+7.0
+28,581.8
+2,399,334,970
+As at
+183
+The information regarding Micro and Small Enterprises has been determined to the extent such parties have been
+identified on the basis of information available with the Company. This has been relied upon by the auditors.
+Payables on purchase of property, plant and
+equipment and other intangible assets
+Product settlement, claims, recall charges
+and trade commitments
+12.0
+1,329.1
+4.0
+29.9
+154.1
+6.4
+1,074.9
+6.4
+15,930.2
+22.4
+37,685.9
+37,685.9
+13,335.8
+51,033.7
+29.9
+154.1
+6.4 1,081.3
+53,638.5
+(b) Sensitivity
+For the years ended March 31, 2024 and March 31, 2023, every 5% strengthening in the exchange rate between
+the Indian rupee and the respective currencies for the above mentioned financial assets/liabilities would (decrease)
+/ increase the Company's profit and (decrease) / increase the Company's equity by approximately (5,298.6) Million
+and (2,685.5) Million respectively. A 5% weakening of the Indian rupee and the respective currencies would lead to
+an equal but opposite effect.
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the
+exposure at the end of the reporting period does not reflect the exposure during the year.
+Patient First. Always.
+182
+Corporate Overview Statutory Reports
+1,333.1
+Financial Statements
+Standalone
+Trade payables
+64,487.3
+3,640.1
+39,028.4
+192.2
+107,348.0
+As at March 31, 2023
+Russian South African
+Ruble
+Rand
+Brazilian
+Real
+Others
+Total
+Financial assets
+Trade receivables
+Cash and cash equivalents
+2,614.6
+36,239.7 4,346.5 3,934.5
+669.4
+59.0
+Financial liabilities
+3,148.7
+7,481.8
+297.1
+Loans to subsidiaries
+39,028.4
+Interest accrued
+192.2
+78,074.9
+5,015.9 3,993.5
+3,148.7
+9,336.1
+7,778.9
+9,336.1
+(b) Pension fund
+Notes to the Standalone Financial Statements
+(c) Derivative contracts
+Sold EUR
+USD 75.0
+GBP 7.5
+EUR 9.0
+USD 75.0
+GBP 5.0
+EUR 9.0
+USD/INR
+Sold USD
+USD 400.0
+USD 400.0
+Currency swaps
+Forward contracts
+Interest rate risk
+Commodity rate risk
+Exposure to market risk with respect to commodity prices primarily arises from the Company's purchases and sales of
+active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients.
+These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the
+Company's raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in
+the Company's active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the
+largest portion of the Company's cost of revenues. Commodity price risk exposure is evaluated and managed through
+operating procedures and sourcing policies. As of March 31, 2024, the Company had not entered into any material
+derivative contracts to hedge exposure to fluctuations in commodity prices.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Standalone
+Notes to the Standalone Financial Statements
+for the year ended March 31, 2024
+NOTE: 45 TRADE PAYABLES
+(a) Disclosures under the Micro, Small and Medium Enterprises Development Act, 2006
+As at March 31, 2024 and March 31, 2023, the Company has loan facilities on fixed interest rates. Hence the Company
+is not exposed to interest rate risk.
+for the year ended March 31, 2024
+Sold GBP
+Forward contracts
+The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily
+in US Dollars, Euros, South African Rand, Brazilian Real and Russian Ruble. The Company uses foreign currency forward
+contracts, foreign currency option contracts and currency swap contracts (collectively, "derivatives") to mitigate
+its risk of changes in foreign currency exchange rates. The counterparty for these contracts is generally a bank or a
+financial institution.
+Hedges of highly probable forecasted transactions
+The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable
+forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow
+hedges is recorded in other comprehensive income, and re-classified in the income statement as revenue in the period
+corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow hedges is
+immediately recorded in the statement of profit and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a net gain of
+* 85.5 Million for the year ended March 31, 2024 and net loss of 192.4 Million for the year ended March 31, 2023 in
+other comprehensive income. The Company also recorded hedges as a component of revenue, gain of * 223.6 Million
+for the year ended March 31, 2024 and loss of ₹1,076.9 Million for the year ended March 31, 2023 on occurrence of
+forecasted sale transaction.
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and
+liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in the statement of profit
+and loss. The changes in fair value of the forward contracts and option contracts, as well as the foreign exchange gains
+and losses relating to the monetary items, are recognised in the statement of profit and loss.
+The following table gives details in respect of the notional amount of outstanding foreign exchange derivative contracts:
+As at
+Currency / Pair
+Sold / Bought
+March 31, 2024
+GBP/USD
+Amount in Million
+As at
+March 31, 2023
+Derivatives designated as hedges
+Forward contracts
+USD/INR
+Sold USD
+USD 485.0
+USD 486.0
+Derivatives not designated as hedges
+Forward contracts
+USD/INR
+Sold USD
+Hedge Type
+Gratuity
+(Funded)
+Efficiency Improvement
+(US$ Billion)
+North America
+1.3
+391
+384
+388
+271
+255
+279
+358
+369
+362
+370
+377
+China
+3.7
+341
+434
+442
+451
+332
+339
+424
+428
+308
+308
+301
+270
+3,144
+145
+147
+148
+303
+3,049
+294
+299
+2,964
+369
+Japan
+425
+0.6
+290
+290
+143
+281
+349
+359
+141
+377
+270
+323
+272
+141
+410
+413
+Africa and Middle East
+435
+445
+489
+496
+506
+Latin America
+1.1
+438
+447
+448
+461
+448
+473
+342
+357
+India
+1.9
+451
+461
+477
+507
+547
+538
+559
+484
+306
+444
+Western Europe
+1.6
+393
+385
+395
+443
+458
+474
+400
+390
+399
+412
+3.5
+428
+1.9
+370
+354
+359
+481
+465
+488
+469
+463
+470
+476
+Eastern Europe
+149
+309
+152
+Lead Independent Director
+Aalok D. Shanghvi
+Whole-time Director*
+Sudhir V. Valia
+Non-Executive and Non-Independent Director
+(appointed with effect from June 01, 2023)
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Board of Directors
+Statutory Reports Financial Statements
+11
+Gautam Doshi
+Independent Director
+Rama Bijapurkar
+Dr. Pawan Goenka
+Independent Director
+Rolf Hoffmann
+Independent Director**
+** (appointed with effect from June 15, 2023)
+Patient First. Always.
+12
+Leadership Team
+Aalok D. Shanghvi
+Whole-time Director and Executive Vice-
+President, Emerging Markets, Global generic
+R&D, Global BD (Generics Segment) & API
+Corporate Overview Statutory Reports
+Leadership Team
+Financial Statements
+Abhay Gandhi
+CEO North America
+Kirti Ganorkar
+Head India Business
+-
+Sanjay Asher
+Independent Director
+C. S. Muralidharan
+Chief Financial Officer
+Financial Statements
+Corporate Overview
+Board of Directors
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Our focus has always been on sustainable cost reduction
+via technological interventions and process enhancements.
+We are also directing our efforts towards reducing working
+capital deployment across our businesses. Sustained efforts
+are being made to further improve our manufacturing
+efficiencies, optimise our manufacturing footprint and
+reduce overall fixed costs.
+Net Cash and Deployment Opportunities
+At year-end, Sun Pharma had a strong net cash position
+of approximately US$ 2.4 Billion, which enables us to
+explore inorganic opportunities, including but not limited
+to strengthening our Global Specialty portfolio.
+Overall Outlook
+We expect high single-digit consolidated topline growth
+for FY25. We expect to see Sun's Global Specialty business
+continue on its growth path. Our R&D spending has been
+on an upward trajectory due to increased clinical study
+spending to advance our Global Specialty pipeline. For FY25,
+we expect our R&D spend to be in the range of 8-10% of
+sales, with an increasing share of spending expected on
+Specialty products.
+Top Priorities for FY25
+• To improve compliance record of manufacturing
+operations, and work towards bringing the three facilities
+facing US FDA action back into fully compliant status
+• Advance our pipeline of Global Specialty products
+with several milestones coming up in FY25, including
+PDUFA date of deuruxolitinib, Nidlegy™ filing in Europe
+SCD-044 data
+• Ensure supply chain continuity and simultaneously focus
+on inventory optimisation
+• Enhance IT systems to facilitate business operations,
+ensure security and digital transformation
+Statutory Reports
+• Embed sustainability practices in our operations; we
+have set clear and actionable targets to achieve our
+sustainability goals
+Sun Pharma's growth over the last 40 years would not have
+been possible without the company's dedicated workforce.
+This year, Sun's employee headcount grew by over 4% to
+become over 43,000 strong. We continue to work towards
+ensuring that our Human Resource management systems
+and policies keep pace with this expansion. Our endeavour
+is to treat all our employees in a fair and equitable manner.
+9
+We are grateful to our Board of Directors for their continued
+guidance and support.
+Your support, as a shareholder, is of vital importance to
+us, and we hope that you will continue to repose your
+confidence in us in the future.
+Regards,
+Dilip Shanghvi
+Chairman and Managing Director
+Sun Pharmaceutical Industries Limited
+Patient First. Always.
+10
+Board of Directors
+Dilip S. Shanghvi
+Chairman and Managing Director
+• Continued focus on cost and operational efficiencies
+• Maintain the ongoing trend towards improving overall
+return ratios
+580
+S. Damodharan
+CEO API Business
+Additionally, advancements in neurology, mental health
+treatments and the emergence of next-generation
+biotherapeutics are poised to reshape medicine spending
+and usage patterns. The approval and rapid uptake of GLP-1
+agonist medicines for diabetes and obesity indications have
+also contributed to shifting medicine use patterns. Despite
+disruptions caused by the pandemic, antibacterial use has
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Management Discussion and Analysis
+Global Pharmaceutical Industry Growth: 2018-20281
+15
+Graph 1
+(Defined Daily Doses in Billions)
+Forecast
+Biotechnology remains a focal point for growth in the
+next five years, alongside specialty medicines catering to
+chronic and rare conditions. The utilisation of medications in
+specific therapy areas has been on the rise since 2018, with
+notable growth observed in immunology, endocrinology,
+and oncology. Oncology and immunology will likely lead
+growth across therapy areas, driven by the introduction
+of new treatments and increasing patient populations.
+Immunology treatments have witnessed a steady increase
+in utilisation, driven by the more comprehensive adoption of
+older therapies.
+3,778
+CAGR %
+2024-2028
+3,465
+3,556
+3,633
+153
+152
+3,316
+3,394 3,378
+152
+Global
+2.3
+3,704
+Suresh Rai
+increased uptake of original medicines and adoption of
+novel therapies will drive growth in these regions. At the
+manufacturer level, net sales growth is expected to be lower
+due to various factors including rebates and government-
+mandated discounts.
+The volume of medicines used globally plateaued in 2023
+but is anticipated to grow steadily at an average rate of
+2.3% through 2028. China, India, and other Asian markets
+are poised to lead this growth, with Latin America also
+experiencing rapid expansion. North America, Western
+Europe, and Japan are expected to exhibit slower growth
+due to their already higher per capita use levels. Volume
+growth in Eastern Europe will likely return to pre-conflict
+trends in 2024.
+Chief Human Resource Officer
+Dr. Meeta Chatterjee
+Chief Strategy Officer
+Reem Malki
+Chief Quality Officer
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Dheeraj Sinha
+Chief Information Officer
+Corporate Overview
+Leadership Team
+Statutory Reports Financial Statements
+13
+Hellen de Kloet
+Business Head - Western Europe,
+Australia and New Zealand
+Dr. Azadar H. Khan
+Head - India Regulatory,
+Corporate Relations & CSR
+Global medicine market is expected to continue on its
+growth path over the next five years driven by higher
+spending in regions such as the US, Europe and key
+Emerging Markets. Newly introduced branded products,
+Uday Baldota
+Sreenivas Rao
+Head - Global Supply Chain
+Marek Honczarenko
+Head - Development
+(Clinical Development)
+Sridhar Shankar
+Head Centre for Global Product
+and Innovation
+Patient First. Always.
+14
+Management Discussion
+and Analysis
+Corporate Overview
+Statutory Reports
+Financial Statements
+Management Discussion and Analysis
+Global Pharmaceutical Industry¹
+In 2023, the global pharmaceutical industry witnessed
+significant shifts in medicine usage and spending growth
+across regions, setting the stage for robust expansion in the
+years ahead. Despite downward revisions in vaccination
+and Covid-related therapeutic spending due to lower usage,
+the industry demonstrated strong resilience and agility by
+adopting novel therapies and increasing overall medicine
+usage. As the pandemic transitioned to an endemic, the
+outlook for medicine spending through 2028 was revised
+upwards, reflecting accelerated growth rates and a projected
+CAGR of 5-8%, reaching a total expenditure of US$2.3 trillion.
+CEO - Taro Pharmaceutical
+Industries Ltd.
+598
+Corporate Overview Statutory Reports Financial Statements
+Chairman and Managing Director's Message
+637
+Pharmaceutical spending in the US will likely increase
+steadily, with forecasts indicating a 2% to 5% annual
+rise until 2028. Off-invoice discounts and rebates, which
+will likely become more pronounced under the Inflation
+Reduction Act (IRA), are a major headwind expected in
+the US spending growth. Currently, these discounts result
+in spending estimated 37% lower than invoice levels in
+2023 and are projected to increase to 47% by 2028.
+Spending on medicines at invoice prices will likely surge
+by US$299 Billion through 2028, a significant escalation
+compared to the US$218 Billion increase observed over
+the past five years. Increased usage of protected branded
+products is expected to be a critical driver, contributing
+US$322 Billion in annual spending.
+Table 3
+(US$ Billion)
+2023
+2019-2023 CAGR
+2028
+2024-2028 CAGR
+1,082
+194
+7.0%
+8.5%
+1,276
+US1
+7.2%
+5-8%
+5-8%
+5-8%
+Challenges are expected to arise from losses of exclusivity
+(LOE), which will impact brand spending. Projections suggest
+a reduction of US$146 Billion through 2028, affecting
+both small molecule and biologics. Small molecule expiries
+will likely reduce brand spending by US$106 Billion, while
+biologic expiries will likely account for US$40 Billion in lower
+spending over the same period.
+Interchangeable biosimilars for insulins and adalimumab
+presents opportunities for significant volume uptake.
+However, current uptake rates do not reflect this potential.
+Questions persist regarding the relationship between
+interchangeability, alternative originator formulations, and
+negotiating strategies, which could significantly influence
+the impact of loss of exclusivities.
+New active substance (NAS) launches are expected to
+remain robust, with an anticipated 58 NAS launches in
+2023 alone. Over the next five years, more than 250
+NASS will likely launch in the US, driving US$119 Billion
+in spending. These NASs include numerous cancer
+drugs and next-generation biotherapeutics, highlighting
+continued innovation and R&D expenditure in the
+pharmaceutical sector.
+US Pharmaceutical Spending and Growth
+2019-2023
+CAGR
+6-9%
+711
+1,010
+1,505-1,535
+255-285
+1,775-1,805
+2023
+Total Developed Markets
+Top 10 Developed Markets
+Statutory Reports
+Financial Statements
+Management Discussion and Analysis
+Global Population Dynamics
+Demographic shifts, including ageing populations
+and evolving disease profiles, are contributing
+to rising demand for pharmaceutical products.
+Addressing this demand requires innovative
+approaches to meet evolving healthcare needs.
+Per Capita Consumption
+Regional disparities in per capita consumption
+persist, with higher-income countries like Japan
+and Western Europe exhibiting double the usage
+compared to lower-income regions. For instance,
+in 2023, per capita consumption in Japan and
+Western Europe was more than double that of
+other regions. While consumption will likely rise
+across most regions, Africa and the Middle East
+face challenges in achieving comparable per capita
+consumption. Improvements in per capita use
+are slower in lower-income countries, hindering
+efforts to improve healthcare access.
+Budget Pressures and Cost Management
+Payers in developed markets are facing
+budget pressures, prompting efforts to curb
+drug spending growth. The costs associated
+with managing the COVID-19 pandemic and
+increased expenditure on novel therapies have
+demanded measures to moderate spending. To
+this end, sectoral players use strategies such
+as promoting generic and biosimilar drugs,
+negotiating favourable pricing agreements with
+pharmaceutical companies, and implementing
+patient cost-sharing arrangements. Balancing cost
+management with ensuring access to innovative
+treatments remains a critical challenge for
+healthcare systems globally.
+Key Trends
+Therapeutic Area Trends
+Since 2018, there has been a notable increase
+in medicine consumption across various
+therapy areas, particularly in immunology,
+endocrinology, and oncology. These advanced
+therapy areas have witnessed significant
+growth, driven by expanded patient access to
+innovative treatments and advancements in
+medical technology. The COVID-19 pandemic
+disrupted consumption patterns, leading to
+fluctuations in usage which rebounded in 2022
+and 2023. This rebound reflects the resilience
+of the pharmaceutical market and its ability to
+adapt to changing circumstances.
+Other Developed Markets
+Digital Health Solutions
+Adopting digital health solutions and advanced
+analytics has revolutionised the pharmaceutical
+landscape, enabling more personalised and
+efficient patient care. These technologies
+plans, and drug discovery, driving growth
+and productivity across the pharmaceutical
+value chain.
+Impact of Innovative Therapies
+Enhanced patient access to innovative
+medicines is a crucial driver of increased
+usage, particularly in advanced therapy
+areas like immunology, endocrinology, and
+oncology. Introducing biologic and small
+molecule therapies has expanded patient
+treatment options, driving up consumption
+rates, particularly in developed markets.
+These innovative therapies offer targeted
+treatment approaches with improved efficacy
+and fewer side effects, contributing to their
+growing popularity among patients and
+healthcare providers.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Financial Statements
+Statutory Reports
+Management Discussion and Analysis
+17
+Developed Markets
+In developed markets, medicine spending will likely be in an annual range of US$1.775 Trillion to US$1.805 Trillion by
+2025. Innovative therapeutics are expected to drive this growth trajectory despite challenges from generic and biosimilar
+competition. Immunology treatments should exhibit steady utilisation increases, offset by emerging biosimilar competition.
+Spending in developed markets will likely accelerate, led by new products and existing branded medicines.
+Developed Markets - Pharmaceutical Spending and Growth¹
+Region
+provide valuable insights into patient
+behaviour, facilitate clinical trial design, and
+optimise supply chain management. Medical
+and research professionals increasingly use
+telemedicine and artificial intelligence (AI)
+for remote diagnosis, personalised treatment
+Corporate Overview
+2028
+2024-2028
+2019-2023
+CAGR
+7%
+26
+Japan¹
+296
+2023
+2028
+2024-2028
+CAGR
+5.5%
+In Japan, pharmaceutical spending growth is expected to be
+in the range of -2% to 1% over the next five years, reflecting
+the ongoing recovery from the COVID-19 pandemic alongside
+enduring trends impacting long-listed brands. The subdued
+rebound observed in 2021 has been compounded by off-
+cycle price cuts and residual pandemic effects. Annual pricing
+revisions will likely persist, albeit with lower impacts during
+off-year cycles than established biennial price cut years.
+Over the past decade, there has been a notable shift in
+spending dynamics, with protected brands witnessing a
+steady increase in market share from 48% to 54%. This trend
+reversal is attributable to manufacturers investing earlier in
+Japan and government initiatives facilitating faster access to
+innovative medicines. Conversely, the contribution of long-
+listed products to spending has steadily declined from 24%
+in 2014 to 11% in 2023, with projections indicating a further
+decrease to 7% by 2028.
+Pharmerging markets have historically experienced growth
+primarily fueled by an increased volume of older generic
+medicines. However, recent shifts in spending patterns
+have propelled some pharmerging countries, like Russia
+and Turkey, into 'other developed' nations due to rising
+pharmaceutical spending levels and improved GDP per
+capita. Despite these advancements, pharmerging markets
+still face challenges, such as limited access to specialty
+medicines, which accounted for 13% of spending in 2023
+and will likely remain unchanged by 2028.
+Growth in pharmerging markets will likely be driven more
+by volume rather than the adoption of expensive therapies.
+These markets typically rely on generics or non-original
+branded products, reflecting lower shares of spending on
+originator products. Additionally, pharmaceutical products in
+pharmerging and lower-income countries tend to have lower
+prices than developed markets, reflecting the cost-conscious
+nature of these regions.
+226
+(Pharmerging Markets include Argentina, Bangladesh, Brazil,
+China, Colombia, Egypt, Indonesia, Mexico, Pakistan, India,
+Philippines, South Africa, Thailand, and Vietnam)
+Pharmaceutical Spending and Growth
+2019-2023
+CAGR
+7.8%
+ठ्ठ
+304
+400-430
+2023
+2028
+Graph 5
+2024-2028
+618
+CAGR
+10-13%
+Pharmerging Markets -
+Graph 2
+WE5 Pharmaceutical Spending and Growth
+(US$ Billion)
+CAGR
+6-9%
+(US$ Billion)
+Patient First. Always.
+18
+Top Five Western European
+Markets (WE5)¹
+Over the next five years, the top five European
+pharmaceutical markets are expected to witness a notable
+increase in spending. While new brands have historically
+been the primary driver of growth, their trajectory in the
+upcoming years may be influenced by lingering pandemic-
+related disruptions early in the period and heightened
+reimbursement scrutiny as budget pressures intensify.
+Additionally, generics and biosimilars are expected to
+contribute US$18 Billion to growth in WE5 markets. The
+effect of LOES, particularly on biologics, is projected to
+more than triple over the next five years. Europe boasts
+the largest biosimilar market globally, a testament to its
+well-established regulatory and commercial pathways
+facilitating uptake. Launch of over 175 NASS in leading
+European countries is expected to contribute US$50 Billion
+to overall spending. With a considerable portion of these
+NAS launches focusing on cancer drugs and neurology,
+Corporate Overview
+Statutory Reports
+Financial Statements
+Management Discussion and Analysis
+Graph 3
+Moreover, policies encouraging the substitution of
+available generics have been largely effective, driving an
+anticipated rise in the generic share of spending. These
+policies incentivise healthcare practitioners to prescribe
+generics, reflecting ongoing efforts to optimise healthcare
+expenditure and promote cost-effective treatment options.
+Graph 4
+2019-2023
+CAGR
+1.5%
+73
+2023
+73
+2028
+2024-2028
+CAGR
+-0.1%
+alongside advancements in next-generation biotherapeutics, Pharmerging Markets¹
+the European pharmaceutical landscape continues to evolve
+despite complex reimbursement dynamics.
+Japan Pharmaceutical Spending and Growth (US$ Billion)
+Key Trends and Drivers Shaping the Industry
+26
+Patient First. Always.
+5-8%
+304
+7.8%
+400-430
+10-13%
+28
+5.6%
+33-37
+3-6%
+1,607
+7.3%
+1,775-1,805
+2,225-2,255
+Global Pharmaceutical Market
+-
+Share by Product Type¹
+Table 2
+(% of Total)
+Region
+Original Brands
+(%)
+Non-original
+Brands (%)
+Unbranded
+Generics (%)
+OTC, Vaccines &
+Others (%)
+Total
+(US$ Billion)
+6-9%
+Year
+7.2%
+(US$ Billion)
+2024-2028 CAGR
+3.4
+Asia-Pacific
+16
+2018
+2019
+2020
+2021
+2022
+2023
+2024
+2025 2026
+1,276
+2027
+Source: IQVIA Institute, December 2023
+Global Pharmaceutical Market
+Region
+Developed Markets
+Pharmerging Markets
+Other Markets
+Global Pharmaceutical Market
+Table 1
+2023
+2019-2023 CAGR
+2028
+2028
+2023
+returned to historic levels. However, concerns persist regarding reduced rates of adult vaccinations, with an estimated
+100 Million fewer doses administered since 2020.
+2023
+304
+400-430
+Other Markets
+32
+27-35
+49
+45-51
+6
+5-7
+13
+11-12
+21-24
+28
+Global Markets
+66
+1,607
+15
+14-15
+10
+8-9
+9
+2,225-2,255
+2028
+7-8
+33-37
+24
+68-69
+2023
+2028
+2023
+2028
+2028
+2023
+2028
+Developed Markets
+76
+78-79
+9-10
+9
+10
+7-8
+14
+33-35
+28-30
+27
+Pharmerging Markets
+35
+1,276
+4-5
+5
+1,775-1,805
+13-17
+No
+08-Sep-17
+Tamilnadu Dadha
+3.6
+Freehold Land
+located thereon
+Company
+Ageing of Capital work-in-progress
+24-Mar-15
+24-Mar-15
+24-Mar-15
+No
+No
+No
+2222
+Solrex Pharmaceuticals
+01-Aug-97
+95.9
+2.9 Ranbaxy Laboratories Limited
+No
+including building
+No
+located thereon
+* in Million
+As at
+March 31, 2024
+Projects in progress
+3 years
+2-3 years
+1-2 years
+Less than
+1 year
+More than
+The title deeds are in
+the name of erstwhile
+companies that were
+merged with the Company
+under relevant provisions
+of the Companies Act,
+1956/2013 in terms of
+approval of the Honorable
+High Courts National
+Company Law Tribunal of
+respective states.
+22. Details of Capital work-in-progress and Intangible assets under development:
+08-Sep-17
+01-Oct-21
+Sun Pharma Global FZE
+89.9
+Building
+No
+Various
+4.1
+Building
+Pharmaceuticals Limited
+Ranbaxy Laboratories Limited
+17. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered
+or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
+survey or any other relevant provisions of the Income Tax Act, 1961).
+Ranbaxy Drugs Limited
+15. The Company has not traded or invested in crypto currency or virtual currency during the financial year.
+14. No proceeding have been initiated or pending against the Company under the Benami Transactions (Prohibitions) Act,
+1988 (45 of 1988) and the Rules made thereunder.
+Current assets and current liabilities are excluding held for sale assets and liabilities.
+Footnote
+9.9%
+6.34%
+6.97%
+45.8%
+16. The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either
+severally or jointly with any other person. No trade or other receivable are due from directors of the Company either
+severally or jointly with any other person.
+6.25%
+Change due to lower profit
+in previous year on account
+of impairment charge on
+investment.
+/ (Total assets - total liabilities - intangible assets - intangible
+assets under development - Goodwill + Long term
+borrowings + Short term borrowings + Lease liabilities)
+Return on investment (%) = Income generated from FVTPL
+Investment / Weighted average FVTPL investment
+(k)
+in previous year on account
+of impairment charge on
+investment.
+Return on capital employed (%) = Net Profit/(loss) after tax
+Projects temporarily suspended
+73.5%
+8.12%
+9.12%
+48.2
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Statutory Reports
+2.7
+Freehold Land
+Freehold Land
+Leasehold Land
+Freehold Land
+including building
+Reason for not being held in
+the name of the company
+Property held
+since which date
+Whether title deed
+holder is a promoter,
+director or relative
+of promoter/director
+or employee of
+promoter/director
+Title deeds held
+in the name of
+value
+(in Million)
+Gross carrying
+Corporate Overview
+Particulars
+Further, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities
+("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall,
+whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
+behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
+Ultimate Beneficiaries.
+20. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
+sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
+("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
+whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
+on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
+Ultimate Beneficiaries. However, the Company, as a part of its treasury operations, invests/advances loans to fund
+the operations of its subsidiaries/associates/ joint venture which have further utilised these funds for their general
+corporate purposes / working capital, etc. within the consolidated group of the Company and in the ordinary course of
+business. These transactions are done on an arms length basis following a due approval process.
+19. The Company has not been declared wilful defaulter by any bank or financial institution or government or any
+government authority.
+18. The Company has not been sanctioned working capital limits from banks or financial institutions during any point of
+time of the year on the basis of security of current assets.
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+193
+Financial Statements
+Standalone
+21. Details of property not in the name of the Company as at March 31, 2024
+2,089.0
+5.4
+2,094.4
+1,311.3
+996.1
+Active Pharmaceutical Ingredient
+577.8
+Domestic formulation
+Projects in progress
+Overdue Capital work-in-progress
+More than March 31, 2023
+3 years
+2-3 years
+1-2 years
+221.7
+Less than
+1 year
+To be completed in
+in Million
+173.7
+45.4
+274.5
+817.7
+1,311.3
+173.7
+As at
+Projects temporarily suspended
+Others
+Projects temporarily suspended
+2-3 years
+14.10%
+1-2 years
+Less than
+in Million
+1,072.1
+165.9
+106.7
+106.7
+221.7
+Projects temporarily suspended
+Projects in progress
+Ageing of Intangible assets under development
+Projects temporarily suspended
+Projects in progress
+Ageing of Intangible assets under development
+1,072.1
+165.9
+577.8
+45.4
+Others
+274.5
+1,525.3
+Projects temporarily suspended
+122.3
+1,250.4
+1,525.3
+Projects in progress
+Ageing of Capital work-in-progress
+in Million
+As at
+March 31, 2023
+1,250.4
+More than
+3 years
+2-3 years
+1-2 years
+Less than
+173.7
+3,882.4
+165.9
+444.7
+0.2
+996.3
+3,708.7
+278.8
+1 year
+122.3
+224.8
+165.9
+390.7
+3,122.8
+Active Pharmaceutical Ingredient
+817.7
+Domestic formulation
+Projects in progress
+Overdue Capital work-in-progress
+More than March 31, 2024
+3 years
+2-3 years
+1-2 years
+Less than
+1 year
+As at
+To be completed in
+in Million
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+194
+Patient First. Always.
+165.9
+3,288.7
+344.8
+2.2
+347.0
+Change due to lower profit
+(c)
+(i)
+5.
+4.
+3.
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+190
+6.
+Patient First. Always.
+Exceptional items includes
+Product related intangibles consisting of trademarks, designs, technical knowhow and other intangible assets are
+available to the Company in perpetuity. The amortisable amount of intangible assets is arrived at based on the
+management's best estimates of useful lives of such assets after due consideration as regards their expected usage,
+the product life cycles, technical and technological obsolescence, market demand for products, competition and
+their expected future benefits to the Company.
+2.
+1.
+NOTE: 55
+The Company has recognised revenue of 535.2 Million (March 31, 2023: 3,239.1 Million) from the amounts included
+under advance received from customers at the beginning of the year.
+The performance obligation is satisfied when control of the goods or services are transferred to the customers based on the
+contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
+Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
+revenue received from customer for which performance obligation has not yet been completed.
+(a) Standalone financial statements for the year ended March 31, 2024 include charge of ₹1,492.1 Million towards
+impairment of an acquired intangible asset under development.
+Contract balances of Trade receivables, Contact assets and Contract liabilities as at April 01, 2022 were 42,451.6 Million,
+345.3 Million and 11,312.4 Million respectively.
+7.
+More than
+3 years
+(a) Amount required to be spent by the Company during the year
+9.
+As per section 135 of the Companies Act, 2013, the Company is required to spend at least 2% of its average net profits
+for the immediately preceding three financial years on corporate social responsibility activities. The CSR Committee of
+the Company monitors the CSR activities and the projects are undertaken in pursuance of the Company's CSR Policy
+and the Annual Action Plan. Company's Annual Action Plan for the financial year 2023-24 covered CSR activities
+in the areas - Healthcare; Education; Environment Conservation; Drinking Water Project; Disaster Relief and Rural
+Development Programme.
+Corporate social responsibility (CSR)
+8.
+191
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+(b) The Company's subsidiary Ranbaxy, Inc., and its former subsidiaries Ranbaxy Pharmaceuticals, Inc. and Ranbaxy
+Laboratories Limited (collectively, “Ranbaxy"), were named as defendants in a lawsuit brought by the State of
+West Virginia alleging that Ranbaxy violated West Virginia antitrust and consumer protection laws in connection
+with a 2008 patent litigation settlement agreement with Pfizer concerning generic Lipitor (Atorvastatin). The case
+was pending in the Circuit Court of Mason County, West Virginia. The parties conducted limited fact discovery
+and served expert disclosures, and the case was scheduled to begin trial on December 11, 2023. With a view to
+resolve this dispute and avoid uncertainty, Ranbaxy and the State of West Virginia executed a binding term sheet
+embodying a comprehensive settlement for an amount of USD 8.39 Million (equivalent to ₹ 698.1 Million) including
+legal costs during the year ended March 31, 2024. The definitive settlement agreement will make clear that
+Ranbaxy denies each and every one of the allegations against it and has not conceded or admitted any liability.
+Financial Statements
+Standalone
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+The date of implementation of the Code on Wages 2019 and the Code on Social Security, 2020 is yet to be notified
+by the Government. The Company will assess the impact of these Codes and give effect in the standalone financial
+statements when the Rules/Schemes thereunder are notified.
+The Company has only one reportable segment namely 'Pharmaceuticals'. In accordance with Ind AS 108 "Operating
+Segments", segment information has been given in the consolidated Ind AS financial statements, and therefore, no
+separate disclosure on segment information is given in these standalone financial statements.
+In December 2023, FDA inspected Sun Pharma's Dadra facility and has subsequently determined the inspection
+classification status of this facility as Official Action Indicated (OAI). The Company is in communication with FDA to
+resolve the inspectional observations that resulted in OAI status.
+In September 2013, FDA placed Sun Pharma's Mohali facility on Import Alert; the site was also subjected to certain
+provisions of the Consent Decree of Permanent Injunction entered against Ranbaxy Laboratories Ltd. in January 2012
+(Ranbaxy Laboratories Ltd. was merged with Sun Pharma in March 2015). In March 2017, FDA removed the Import
+Alert on Mohali facility and indicated that the site was in substantial compliance with the current Good Manufacturing
+Practice ("cGMP") provisions mentioned in the Consent Decree. In August 2022, FDA inspected the Mohali facility,
+and the inspection was classified as OAI. Subsequently, in April 2023, FDA issued a Consent Decree Correspondence/
+Non-Compliance letter to the Mohali facility in which FDA directed the Company to take certain corrective actions at
+the Mohali facility, and certain actions before releasing finished drug product batches into the United States. These
+actions include, but are not limited to, retaining an independent cGMP expert to conduct batch certifications of drug
+products manufactured at the Mohali facility for shipment to the U.S. market.
+In May 2022, FDA inspected Sun Pharma's Halol facility, and the inspection was classified as Official Action Indicated
+("OAI") in August 2022. Subsequently, in December 2022, FDA placed the Halol facility on Import Alert 66-40;
+however, subject to certain conditions, certain Halol-manufactured finished drug products were exempted from
+the Import Alert. The Company is taking all corrective measures necessary to address the observations and is in
+communication with the FDA regarding the same.
+Standalone financial statements for the year ended on March 31, 2023 includes charge on account of impairment
+of investments in a wholly owned subsidiary amounting to 29,377.9 Million pursuant to assessment of
+recoverability due to changes in certain internal and external economic indicators.
+Statutory Reports
+(b) Amount of expenditure incurred
+6,934.7
+5,276.9
+22.9
+111.6
+194,346.4
+Revenue from contract with customers
+Rebates, discounts, price reduction and others
+Provision for sales return
+Add / (Less):
+Revenue as per contracted price, net of returns
+3,555.6
+Year ended
+March 31, 2023
+Year ended
+March 31, 2024
+194,768.1
+The reconciling items of revenue recognised in the statement of profit and loss with the contracted price are as follows:
+The Company has recorded an additional amount of 237.5 Million (March 31, 2023: 641.2 Million) as deferred revenue
+pursuant to the requirements of Ind AS 115. Revenue of ₹1,383.2 Million (March 31,2023: 2,241.3 Million) has been
+recognised as Revenue from contracts with customers pursuant to completion of performance obligation in respect of the
+above contracts.
+NOTE: 54 REVENUE FROM CONTRACTS WITH CUSTOMERS
+189
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+* in Million
+71,250.2
+231.5
+9,577.0
+9,599.9
+88,341.6
+Contract liabilities
+Contract assets
+Trade receivables
+Contract balances
+in Million
+As at
+March 31, 2023
+March 31, 2024
+As at
+3,667.2
+198,435.3
+203,946.3
+191,775.5
+6,659.8
+198,435.3
+Year ended
+March 31, 2023
+in Million
+Year ended
+March 31, 2024
+Sale of service / others
+Sale of products
+Disaggregation of revenue from contract with customers
+203,946.3
+198,930.6
+5,015.7
+Net profit ratio (%) = Net profit/(loss) after tax / Total
+revenue from operations
+(c) Set-off of excess spent of previous years, if any
+(e) Total of previous years shortfall
+(7.6%)
+1.66
+1.53
+(e)
+69.1%
+704.67%
+1191.26%
+Change due to lower profit
+in previous year on account
+of impairment charge on
+investment.
+(f)
+Return on equity ratio (%) = Net profit/(loss) after tax /
+Equity share capital
+(50.1%)
+13.55
+6.76
+Change due to increase in
+borrowings and consequent
+finance costs.
+44.4%
+0.33
+0.47
+Change due to increase in
+borrowings.
+(d)
+Debt service coverage ratio = (Profit/(loss) after tax but
+before finance costs, depreciation and amortisation
+and exceptional items) / (Finance costs + Short-term
+borrowings + Short term Lease liabilities)
+Inventory turnover ratio = (Cost of materials consumed
+Trade receivables turnover ratio in no. of days = (Average
+trade receivables * no. of days) / Revenue from contracts
+with customers
+(24.9%)
+2.52
+1.90
+Net capital turnover ratio = Revenue from contracts with
+customers (Current assets - Current liabilities)
+(h)
+the average payables during
+the year.
+29.8%
+161
++ Purchase of stock-in-trade + Changes in inventories of
+finished goods, stock-in-trade and work-in-progress) /
+Average inventory
+209
+Trade payable turnover ratio in no. of days = (Average trade
+payable * no. of days) / Purchases during the year
+(g)
+during the year.
+in the average receivables
+44.7%
+102
+147
+Change due to increase
+Change due to decrease in
+(d) Shortfall (surplus) at the end of the year
+Debt equity ratio = (Long-term borrowings + Short-term
+borrowings and lease liabilities) / Total equity
+(b)
+The Company considers climate-related matters in estimates and assumptions, where appropriate. This assessment
+includes a wide range of possible impacts on the Company due to both physical and transition risks. Even though the
+Company believes its business model and products will still be viable after the transition to a low-carbon economy,
+climate-related matters increase the uncertainty in estimates and assumptions underpinning several items in the
+financial statements. Even though climate-related risks might not currently have a significant impact on measurement,
+the Company is closely monitoring relevant changes and developments, such as new climate-related legislation.
+10. On March 01, 2023, the Company disclosed an information security incident that impacted some of the Company's IT
+assets. The Company promptly took steps to contain and remediate the impact of the information security incident,
+including employing appropriate containment protocols to mitigate the threat, employing enhanced security measures
+and utilising global cyber security experts to ensure the integrity of the Company's IT systems' infrastructure and data.
+As part of the containment measures, the Company proactively isolated its network and initiated recovery procedures.
+As a result of these measures, certain business operations were also impacted.
+150.0
+N.A.
+N.A.
+200.0
+As at March 31, 2024, amount available for set off in subsequent year is 0.9 Million pertaining to year 2022-23.
+(1.0)
+21.0
+293.6
+The Company has since strengthened its cybersecurity infrastructure and implemented improvements to its cyber and
+data security systems to safeguard against such risks in the future. The Company is also implementing certain long-term
+measures to augment its security controls systems across the organisation. The Company worked with legal counsel
+across relevant jurisdictions to notify applicable regulatory and data protection authorities, where considered required,
+and the Company believes there is no material legal non-compliance by the Company on account of the information
+security incident. The Company believes that all known impacts on its financial statements on account of this incident
+have been considered.
+460.3
+481.3
+March 31, 2024
+As at
+#Represents contribution to Shantilal Shanghvi Foundation.
+(h) Where a provision made with respect to a liability incurred by entering into a contractual
+obligation, the movements in the provision during the year should be shown separately
+#
+(g) Details of related party transactions (as per Ind AS 24)
+(f) Reason for shortfall
+in Million
+As at
+March 31, 2023
+292.6
+(c)
+11. The Company has used accounting software for maintaining its books of account which have a feature of recording audit
+trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software,
+except that audit trail feature is not enabled for certain changes made using privileged/ administrative access rights to all the
+accounting software and/or the underlying SQL database. Further no instance of audit trail feature being tampered with was
+noted in respect of accounting software.
+192
+70.7%
+(in %)
+March 31, 2023
+1.97
+March 31, 2024
+3.36
+Change is primarily due to
+payment towards product
+settlement liabilities during
+the year.
+Current ratio = Current assets / Current liabilities
+(a)
+Remarks
+Patient First. Always.
+Ratios and Formulae
+As at
+As at
+13. Ratios
+12. As part of the ongoing simplification of the group structure in India, the Board of Directors of the Company at its
+meeting held on May 30, 2022, approved the Scheme of Amalgamation for the merger of Wholly-owned Subsidiaries,
+Sun Pharmaceutical Medicare Limited, Green Eco Development Centre Limited, Faststone Mercantile Company Private
+Limited, Realstone Multitrade Private Limited and Skisen Labs Private Limited (collectively "Transferor Companies"), with
+Sun Pharmaceutical Industries Limited ("Transferee Company") to be effective from such date as may be decided under the
+authorisation by the Board of Directors of the Transferor Companies and the Board of Directors of the Transferee Company
+and/or such other date as may be approved by the National Company Law Tribunal pursuant to the provisions of Sections
+230 to 232 of Companies Act, 2013 and other relevant provisions of the Companies Act, 2013 and rules framed thereunder.
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+Variance
+As at
+Ranbaxy (Malaysia) Sdn. Bhd.
+1 year
+9
+With effect from March 31, 2023 Concert Pharmaceuticals, Inc. merged with Sun Pharmaceutical Industries, Inc.
+8
+7 With effect from March 06, 2023 Foliage Merger Sub, Inc. merged with Concert Pharmaceuticals, Inc.
+5 Holds voting power of 85.66% (beneficial ownership 78.48%) [March 31, 2023 85.66% (beneficial ownership 78.48%)]
+With effect from December 21, 2023 Sun Pharmaceuticals SA (Pty) Ltd has been dissolved
+6
+Dissolved/Liquidated during the previous year
+4
+3 Dissolved/Liquidated during the year
+Incorporated/Acquired during the previous year
+Incorporated Acquired during the year
+2
+1
+Footnotes
+Sanghvi Properties Pvt Ltd
+Navbio Ag (w.e.f. June 15, 2023)
+With effect from March 31, 2024 Dusa Pharmaceuticals, Inc. was merged into Sun Pharmaceutical Industries, Inc.
+Patient First. Always.
+198
+Corporate Overview Statutory Reports
+6,899.2
+7,456.3
+6,929.4
+7,471.1
+Year ended
+March 31, 2023
+in Million
+Year ended
+March 31, 2024
+Purchase of property, plant and equipment and other intangible assets
+Aditya Medisales Limited
+Others
+Type of Transaction
+Subsidiaries
+(Annexure 'A')
+(II) Detail of related party transaction during the year ended March 31, 2024:
+Ind AS-24 - "RELATED PARTY DISCLOSURES"
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Purchase of goods
+Pharmarack Technologies Pvt Ltd (upto February 13, 2023)
+Shantilal Shanghvi Foundation
+Alfa Infraprop Private Limited
+Aalok D. Shanghvi
+Israel Makov
+Sailesh Trambaklal Desai
+Sudhir Vrundavandas Valia
+Dilip Shantilal Shanghvi
+d
+Key Management Personnel (KMP)
+с
+Kalyanasundaram lyer Natesan Subramanian
+Dy Py Institute LLC
+b
+Names of related parties where there are transactions and description of relationships
+Ind AS-24 - "RELATED PARTY DISCLOSURES"
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Associate
+14.8
+Relatives of Key Management Personnel
+Aalok D. Shanghvi (appointed as Whole-time Director w.e.f. June 01, 2023)
+United Medisales Private Limited (upto March 31, 2024)
+Sidmak Laboratories (India) Private Limited
+Sun Petrochemicals Private Limited
+Sun Pharma Advanced Research Company Limited.
+Others (Entities in which the KMP, Independent Directors and relatives of KMP, Independent Directors have control or Significant influence)
+Makov Associates Limited (upto August 29, 2022)
+f
+Sanjay Khatau Asher (w.e.f. November 01.2022)
+Rolf Karl Heinz Hoffmann (w.e.f. June 15, 2023)
+Vidhi Shanghvi
+Rama Bijapurkar
+Chairman and Non-Executive Director
+(Non-Independent) (upto August 29, 2022)
+Whole-time Director (w.e.f. June 01, 2023)
+Whole-time Director (upto February 13, 2023)
+(Chairman and Managing Director w.e.f May 22, 2024)
+Non-Executive Director and Non-Independent Director
+Whole-time Director (upto March 31, 2024)
+Managing Director
+(Annexure 'A')
+197
+Gautam Doshi
+e
+Independent Directors
+Pawan Kumar Goenka
+30.2
+26.3
+21.4
+1,143.7
+Subsidiaries
+1,320.3
+1,183.6
+Reimbursement of expenses (received)
+8.2
+17.8
+Others
+1,293.1
+947.0
+Subsidiaries
+955.2
+1,067.4
+Rendering of service
+26.8
+26.6
+Others
+30,932.2
+1,049.6
+17,447.8
+Others
+27.2
+Corporate Overview Statutory Reports
+266.0
+8.8
+8.8
+60.0
+60.0
+159.2
+15.3
+39.9
+159.2
+Subsidiaries
+Assignment of Capital Advance
+Subsidiaries
+Loss on Liquidation of a Subsidiary
+Subsidiaries
+Loans received back / Assigned
+Subsidiaries
+Loans given
+15.3
+Vivaldis Health and Foods Private Limited (Refer Footnote 1)
+Subsidiaries
+17,474.4
+170,416.4
+162,960.9
+162,680.4
+Subsidiaries
+Receiving of service
+Others
+Other operative income/Other Income
+Others
+Subsidiaries
+170,364.4
+Sale of property, plant and equipment
+Subsidiaries
+Revenue from contracts with customers, net of returns
+2.5
+24.6
+18.9
+1.7
+Others
+Subsidiaries
+Others
+624.3
+30,959.0
+280.5
+55.3
+Reimbursement of expenses (paid)
+485.4
+Others
+0.4
+Associates
+2,403.2
+2,672.2
+3,027.9
+52.0
+3,157.6
+15.3
+14.6
+15.3
+4.0
+0.2
+66.9
+55.1
+70.9
+14.6
+Taro Pharma Corporation, Inc. (Refer Footnote 1)
+Sun Pharma Housatonic III LLC (Refer Footnote 2)
+Sun Pharma Middle East FZE LLC (Refer Footnote 1)
+Libra Merger Ltd (Refer Footnote 1)
+Sun Pharma Housatonic II LLC (Refer Footnote 2)
+As per our report of even date
+24. Figures for previous year have been regrouped / reclassified wherever considered necessary.
+The Company does not have any transactions and balances with companies which are struck off except shares held by
+38 shareholders holding 30,659 shares (March 31, 2023: 10 shareholders holding 11,889 shares) having face value of
+* 1 per share.
+23. Relationship with Struck off Companies
+190.7
+190.7
+0.9
+0.9
+For S RBC & CO LLP
+189.8
+189.8
+2-3 years
+1-2 years
+Less than
+1 year
+As at
+To be completed in
+in Million
+154.7
+154.7
+More than March 31, 2023
+3 years
+154.7
+154.7
+Chartered Accountants
+per PAUL ALVARES
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+196
+Patient First. Always.
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 22, 2024
+Whole-time Director
+(DIN: 01951829)
+AALOK D. SHANGHVI
+ICAI Firm Registration No.: 324982E/E300003
+Company Secretary and Compliance Officer
+(DIN: 00005588)
+Chairman and Managing Director
+DILIP S. SHANGHVI
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+For and on behalf of the Board of Directors of
+Mumbai, May 22, 2024
+Membership No.: 105754
+Partner
+ANOOP DESHPANDE
+for the year ended March 31, 2024
+Others
+Others
+856.8
+As at
+March 31, 2023
+More than
+3 years
+1 year
+2-3 years
+1-2 years
+Less than
+in Million
+275.9
+3,778.7
+41.6
+804.9
+387.0
+3,778.7
+2,545.2
+41.6
+804.9
+387.0
+2,545.2
+Overdue Intangible assets under development
+Projects in progress
+1,522.9
+275.9
+Projects in progress
+Overdue Intangible assets under development
+More than March 31, 2024
+3 years
+2-3 years
+As at
+To be completed in
+1-2 years
+Less than
+1 year
+in Million
+856.8
+195
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+5,146.3
+94.1
+5,240.4
+2,490.7
+94.1
+2,584.8
+1,522.9
+for the year ended March 31, 2024
+March 31, 2024
+Ind AS-24 - "RELATED PARTY DISCLOSURES"
+a.
+Sun Pharma Holdings UK Limited
+Sun Pharma UK Limited
+Sun Pharma Laboratorios,S.L.U.
+Sonke Pharmaceuticals Proprietary Limited
+Ranbaxy Pharmaceuticals (Pty) Ltd
+Ranbaxy South Africa (Pty) Ltd
+AO Ranbaxy
+SC Terapia SA
+Ranbaxy Inc.
+Ranbaxy (Poland) Sp. Z o.o.
+Sun Pharma Italia srl
+Basics GmbH
+Sun Pharma Egypt LLC
+Rexcel Egypt LLC
+Sun Pharma ANZ Pty Ltd
+Ranbaxy Farmaceutica Ltda.
+Sun Pharma Canada Inc.
+PI Real Estate Ventures, LLC
+Sun Pharma East Africa Limited
+Sun Pharma Switzerland Limited
+Universal Enterprises Private Limited
+Sun Pharmaceutical Industries S.A.C.
+2 Independence Way LLC
+Ranbaxy (Thailand) Co., Ltd.
+Ranbaxy Signature LLC
+Sun Pharma Housatonic LLC (Refer Footnote 2)
+Sun Pharma New Milford Parent LLC (Refer Footnote 2)
+Concert Pharma Ireland Limited (Refer Footnote 2)
+Concert Pharma U.K. Ltd (Refer Footnote 2 & 3)
+Concert Pharmaceuticals Securities Corp. (Refer Footnote 2 & 3)
+Concert Pharmaceuticals, Inc. (Refer Footnote 2 & 8)
+Foliage Merger Sub, Inc. (Refer Footnote 2 & 7)
+Alchemee Skincare Corporation (Formerly known as The Proactiv
+Company Corporation)
+Ohm Laboratories, Inc.
+The Proactiv Company KK
+The Proactiv Company Holdings, Inc. (Formerly known as Galderma
+Holdings, Inc.)
+Sun Pharma Japan Technical Operations Limited
+Alchemee, LLC
+Sun Pharma (Shanghai) Co.,Ltd
+Sun Pharma Global FZE (Refer Footnote 3)
+Sun Pharmaceuticals (EZ) Limited
+Zenotech Farmaceutica Do Brasil Ltda
+Sun Pharma Distributors Limited
+Realstone Infra Limited
+Sun Pharmaceuticals Holdings USA, Inc.
+Zenotech Inc
+Sun Pharmaceuticals Morocco LLC
+"Ranbaxy Pharmaceuticals Ukraine" LLC
+Sun Pharmaceutical Medicare Limited
+JSC Biosintez
+Proactiv YK
+(I) Names of related parties and description of relationships
+Dusa Pharmaceuticals, Inc. (Refer Footnote 9)
+3 Skyline LLC
+Sun Pharma (Netherlands) B.V.
+Softdeal Pharmaceuticals Private Limited
+Sun Pharma Holdings
+Skisen Labs Private Limited
+Realstone Multitrade Private Limited
+Neetnav Real Estate Private Limited
+Faststone Mercantile Company Private Limited
+Sun Pharma Laboratories Limited
+Sun Pharma France
+Sun Pharma De Venezuela, C.A.
+Sun Pharmaceutical Peru S.A.C.
+Sun Pharma De Mexico S.A. DE C.V.
+Sun Farmaceutica Do Brasil Ltda.
+Sun Pharmaceutical Industries, Inc.
+Sun Pharmaceutical (Bangladesh) Limited
+Green Eco Development Centre Limited
+Subsidiaries
+(Annexure 'A')
+OOO "Sun Pharmaceutical Industries" Limited (Refer Footnote 4)
+One Commerce Drive LLC
+Ranbaxy Nigeria Limited
+Zenotech Laboratories Limited
+Taro International Ltd.
+Taro Pharmaceuticals Europe B.V.
+Taro Pharmaceuticals North America, Inc.
+Taro Pharmaceuticals U.S.A., Inc.
+Taro Pharmaceuticals Inc.
+Taro Pharmaceutical Industries Ltd. (TARO) (Refer Footnote 5)
+Sun Laboratories FZE
+Sun Pharma Japan Ltd.
+Foundation for Disease Elimination and Control of India
+Caraco Pharmaceuticals Private Limited
+Sun Pharmaceuticals SA (Pty) Ltd (Refer Footnote 6)
+Sun Pharmaceuticals Germany GmbH
+Sun Pharmaceutical Industries (Europe) B.V.
+Aditya Acquisition Company Ltd.
+Sun Pharmaceutical Industries (Australia) Pty Limited
+Alkaloida Chemical Company Zrt.
+The Taro Development Corporation
+Chattem Chemicals Inc.
+Sun Pharma Philippines, Inc.
+Anshul Speciality Molecules Pvt Ltd
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+266.0
+Subsidiaries
+• Analysed the historical pattern of chargebacks, the inventory information
+and performed retrospective reviews in order to validate management's
+assumptions.
+• Evaluated the key assumptions used by the Group by comparing it with prior
+years.
+• Obtained and evaluated management's computations for accruals under
+respective contractual arrangements.
+• Evaluated the design and tested the operating effectiveness of the Group's
+controls over the completeness, recognition and measurement of accruals.
+These deductions involve significant judgement and
+estimation, in particular the accruals associated with the
+revenue transactions pertaining to business of United
+States and hence is considered as a Key Audit Matter.
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+Rebates, discounts, chargebacks, returns and other allowances (as described in note 53 of the consolidated Ind AS financial statements)
+The Group generates revenue across various geographies
+through commercial arrangements prevalent in those
+geographies. These commercial arrangements involve
+rebates, discounts, chargebacks, right to return and other
+allowances, which are deducted from the gross revenue to
+arrive at Revenue from Operations.
+How our audit addressed the key audit matter
+Key audit matter
+203
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+• Verified the disclosures related to provisions and contingent liabilities in the
+consolidated Ind AS financial statements to assess consistency with underlying
+documents.
+• Circulated, obtained and read legal confirmations from Group's external
+legal counsels in respect of material litigations and considered that in our
+assessment.
+• Obtained a list of litigations from the Group's in-house legal counsel; identified
+material litigations from the aforementioned list and performed inquiries with
+the said counsel; obtained and read the underlying documents to assess the
+assumptions used by management in arriving at the conclusions.
+Considering the judgement involved in determining the
+need to make a provision or disclose as contingent liability,
+the matter is considered a Key Audit Matter.
+Litigations (as described in Note 39 of the consolidated Ind AS financial statements)
+The Group is involved in various legal proceedings
+including product liability, contracts, employment claims,
+Department of Justice (DOJ) investigations, anti-trust and
+other regulatory matters relating to conduct of its business.
+The Group assesses the need to make provision or to
+disclose a contingent liability on a case-to-case basis
+considering the underlying facts of each litigation.
+The eventual outcome of the litigations is uncertain
+and estimation at balance sheet date involves extensive
+judgement of management including input from legal
+counsel due to complexity of each litigation. Adverse
+outcomes could significantly impact the Group's reported
+results and balance sheet position.
+• Compared the assumptions in respect of rebates, discounts, allowances and
+returns to current payment trends.
+• Evaluated adequacy of disclosures as required by Ind AS 115.
+Goodwill and other intangible assets (as described in note 3B and 47 of the consolidated Ind AS financial statements)
+The Group has significant intangible assets, comprising
+acquired trademarks, product intangibles and goodwill. The
+Group conducts an annual impairment testing of goodwill
+and intangible assets.
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+• Obtained a list of related parties from the Group's management and traced the
+related parties to declarations given by directors, where applicable, and to note
+57 of the consolidated Ind AS financial statements.
+• Evaluated the design and tested the operating effectiveness of controls over
+identification and disclosure of related party transactions.
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+in note 57 of the consolidated Ind AS financial statements)
+• Verified disclosures of the tax positions, tax loss carry forwards and tax
+litigations in the consolidated Ind AS financial statements.
+• Tested management's assumptions including forecasts and sensitivity analysis
+in respect of recoverability of deferred taxes on unabsorbed depreciation/carry
+forward losses/Minimum Alternate Tax (MAT) credit.
+Engaged tax expert, to evaluate management's assessment of the outcome of
+these litigations. Our expert considered legal precedence and other rulings in
+evaluating management's position on these tax litigations.
+•
+• Obtained list of ongoing tax litigations from management along with their
+assessment of the cases based on past precedents, judgements and matters in
+the jurisdiction, legal opinions sought by management, correspondences with
+tax department etc.
+• Evaluated the design and tested the operating effectiveness of controls in
+respect of the identification and evaluation of tax litigations/deferred tax and
+the recording and re-assessment of the related liabilities/assets and provisions
+and disclosures.
+Identification and disclosure of related parties was a
+significant area of focus and hence considered it as a Key
+Audit Matter.
+Identification and disclosure of related parties (as described
+The Group has related party transactions which include,
+amongst others, sale and purchase of goods/services to
+its associates, joint venture and other related parties and
+lending, investment and borrowing to its associates and
+joint venture.
+The assessment of outcome of litigations involves
+significant judgement which is dependent on the facts
+of each case, supporting judicial precedents and legal
+opinions of external and internal legal counsels and hence
+the matter has been considered as a Key Audit Matter.
+Recognition of deferred tax assets involves the assessment
+of its recoverability within the allowed time frame
+requiring significant estimate of the financial projections,
+availability of sufficient taxable income in the future and
+also involving significant judgements in the interpretation
+of tax regulations and tax positions adopted by the Group.
+Considering the judgement involved in determining the
+recovery of deferred tax assets, the matter is considered a
+Key Audit Matter.
+• Evaluated the disclosures in the consolidated Ind AS financial statements.
+described in note 39 and 50 of the consolidated Ind AS financial statements)
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+• Obtained and evaluated management's sensitivity analysis to ascertain the
+impact of changes in key assumptions.
+• Obtained the Group's computation of recoverable amount and tested the
+mathematical accuracy and reasonableness of key assumptions.
+• Evaluated the design and tested the operating effectiveness of management's
+controls in assessing the carrying value of goodwill and intangible assets.
+Tax litigations and recognition of deferred tax assets (as
+The Group has significant tax litigations for which the
+Group assesses the outcome on a case-to-case basis
+considering the underlying facts of each tax litigation.
+Adverse outcomes could significantly impact the Group's
+reported results and balance sheet position.
+Significant judgements are used to estimate the
+recoverable amount of these intangible assets and goodwill
+and is hence considered as a Key Audit Matter.
+• Evaluated the design and tested the operating effectiveness of controls in
+respect of the identification and evaluation of litigations, the recording / re-
+assessment of the related liabilities, provisions and disclosures.
+Our audit procedures and procedures performed by component auditors
+amongst others included the following:
+How our audit addressed the key audit matter
+We have determined the matters described below to be the
+key audit matters to be communicated in our report. We
+have fulfilled the responsibilities described in the Auditor's
+responsibilities for the audit of the consolidated Ind AS
+financial statements section of our report, including in
+relation to these matters. Accordingly, our audit included
+the performance of procedures designed to respond to our
+assessment of the risks of material misstatement of the
+consolidated Ind AS financial statements. The results of
+audit procedures performed by us and by other auditors of
+components not audited by us, as reported by them in their
+audit reports furnished to us by management, including
+those procedures performed to address the matters below,
+provide the basis for our audit opinion on the accompanying
+consolidated Ind AS financial statements.
+39,676.9
+44,469.7
+13,004.5
+10,445.2
+Year ended
+March 31, 2023
+in Million
+(Annexure 'A')
+201
+March 31, 2024
+Year ended
+Sun Pharma Laboratories Limited
+Loan repaid
+Sun Pharma Laboratories Limited
+Sun Pharmaceutical Industries, Inc.
+Loan taken
+Sun Pharmaceutical Industries, Inc.
+Reimbursement of expenses - paid
+Sun Pharma Distributors Limited
+Sun Laboratories FZE
+Revenue from contracts with customers, net of returns
+Type of Transaction
+49,672.3
+• Read minutes of the meetings of the Board of Directors and Audit Committee.
+56,150.4
+27,807.1
+Key audit matters are those matters that, in our professional
+judgement, were of most significance in our audit of the
+consolidated Ind AS financial statements for the financial
+year ended March 31, 2024. These matters were addressed
+in the context of our audit of the consolidated Ind AS
+financial statements as a whole, and in forming our opinion
+thereon, and we do not provide a separate opinion on these
+matters. For each matter below, our description of how our
+audit addressed the matter is provided in that context.
+Key Audit Matters
+the Consolidated Ind AS Financial Statements' section of
+our report. We are independent of the Group, associates,
+joint venture in accordance with the 'Code of Ethics' issued
+by the Institute of Chartered Accountants of India together
+with the ethical requirements that are relevant to our audit
+of the Ind AS financial statements under the provisions of
+the Act and the Rules thereunder, and we have fulfilled
+our other ethical responsibilities in accordance with these
+requirements and the Code of Ethics. We believe that
+the audit evidence we have obtained is sufficient and
+appropriate to provide a basis for our audit opinion on the
+consolidated Ind AS financial statements.
+Key audit matter
+We conducted our audit of the consolidated Ind AS
+financial statements in accordance with the Standards on
+Auditing (SAs), as specified under section 143(10) of the
+Act. Our responsibilities under those Standards are further
+described in the 'Auditor's Responsibilities for the Audit of
+Basis for Opinion
+In our opinion and to the best of our information and
+according to the explanations given to us and based on
+the consideration of reports of other auditors on separate
+financial statements and on the other financial information
+of the subsidiaries, the aforesaid consolidated Ind AS
+financial statements give the information required by the
+Companies Act, 2013, as amended (the "Act") in the manner
+so required and give a true and fair view in conformity with
+the accounting principles generally accepted in India, of the
+consolidated state of affairs of the Group, its associates and
+joint venture as at March 31, 2024, their consolidated profit
+including other comprehensive income, their consolidated
+cash flows and the consolidated statement of changes in
+equity for the year ended on that date.
+We have audited the accompanying consolidated Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited (hereinafter referred to as the "Holding Company"),
+its subsidiaries (the Holding Company and its subsidiaries
+together referred to as the "Group") its associates and joint
+venture comprising of the consolidated Balance sheet as
+at March 31, 2024, the consolidated Statement of Profit
+and Loss, including other comprehensive income, the
+consolidated Cash Flow Statement and the consolidated
+Statement of Changes in Equity for the year then ended,
+and notes to the consolidated Ind AS financial statements,
+including a summary of material accounting policies and
+other explanatory information (hereinafter referred to as the
+"consolidated Ind AS financial statements").
+Report on the Audit of the Consolidated Ind AS Financial
+Statements
+Opinion
+To the Members of Sun Pharmaceutical Industries Limited
+Independent Auditor's Report
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+202
+Patient First. Always.
+54,929.6
+111,125.6
+82,140.5
+145,618.4
+12,138.4
+• Read declarations of related party transactions given to the Board of Directors
+and Audit Committee.
+• Verified the disclosures in the consolidated Ind AS financial statements for
+compliance with Ind AS 24.
+Patient First. Always.
+iv.
+iii.
+Provision has been made in the consolidated
+Ind AS financial statements, as required under
+the applicable law or accounting standards,
+for material foreseeable losses, if any, on
+long-term contracts including derivative
+contracts Refer Note 23 and Note 28 to
+the consolidated Ind AS financial statements
+in respect of such items as it relates to
+the Group.
+The consolidated Ind AS financial statements
+disclose the impact of pending litigations
+on its consolidated Ind AS financial position
+of the Group in its consolidated Ind AS
+financial statements - Refer Note 39 to the
+consolidated Ind AS financial statements.
+ii.
+i.
+With respect to the other matters to be included
+in the Auditor's Report in accordance with
+Rule 11 of the Companies (Audit and Auditors)
+Rules, 2014, as amended, in our opinion and to
+the best of our information and according to
+the explanations given to us and based on the
+consideration of the report of the other auditors
+on separate financial statements as also the other
+financial information of the subsidiaries, as noted
+in the 'Other matter' paragraph:
+(i)
+(h) In our opinion and based on the consideration
+of reports of other statutory auditors of the
+subsidiaries incorporated in India, the managerial
+remuneration for the year ended March 31, 2024
+has been paid / provided by the Holding Company
+and its subsidiaries incorporated in India to their
+directors in accordance with the provisions of
+section 197 read with Schedule V to the Act;
+(g) With respect to the adequacy of the internal
+financial controls with reference to consolidated
+Ind AS financial statements of the Holding
+Company and its subsidiary companies,
+incorporated in India, and the operating
+effectiveness of such controls, refer to our
+separate Report in "Annexure 2" to this report;
+The modification relating to the maintenance of
+accounts and other matters connected therewith
+are as stated in the paragraph (b) above on
+reporting under Section 143(3)(b) and paragraph
+i(vi) below on reporting under Rule 11(g);
+(f)
+(e) On the basis of the written representations
+received from the directors of the Holding
+Company as on March 31, 2024 taken on record
+by the Board of Directors of the Holding Company
+and the reports of the statutory auditors who
+are appointed under Section 139 of the Act, and
+its subsidiary companies, none of the directors
+of the Group's companies, incorporated in India,
+is disqualified as on March 31, 2024 from being
+appointed as a director in terms of Section 164 (2)
+of the Act;
+207
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(d) In our opinion, the aforesaid consolidated Ind AS
+financial statements comply with the Accounting
+Standards specified under Section 133 of the
+Act, read with Companies (Indian Accounting
+Standards) Rules, 2015, as amended;
+There has been no delay in transferring
+amounts, required to be transferred, to the
+Investor Education and Protection Fund by
+the Holding Company and its subsidiaries,
+incorporated in India, except a sum of
+* 1.4 Million, which is held in abeyance
+due to pending legal cases.
+(c) The Consolidated Balance Sheet, the Consolidated
+Statement of Profit and Loss including the
+Statement of Other Comprehensive Income,
+the Consolidated Cash Flow Statement and
+Consolidated Statement of Changes in Equity
+dealt with by this Report are in agreement
+with the books of account maintained for the
+purpose of preparation of the consolidated Ind AS
+financial statements;
+(a) The respective managements of the
+Holding Company and its subsidiaries
+which are companies incorporated
+in India whose Ind AS consolidated
+financial statements have been audited
+under the Act have represented to
+us and the other auditors of such
+subsidiaries that, to the best of its
+knowledge and belief, no funds have
+been advanced or loaned or invested
+(either from borrowed funds or share
+premium or any other sources or kind
+of funds) by the Holding Company or
+any of such subsidiaries to or in any
+other person(s) or entity(ies), including
+foreign entities ("Intermediaries"), with
+the understanding, whether recorded
+in writing or otherwise, that the
+Intermediary shall, whether, directly
+or indirectly lend or invest in other
+persons or entities identified in any
+manner whatsoever by or on behalf
+of the respective Holding Company
+or any of such subsidiaries ("Ultimate
+Beneficiaries") or provide any guarantee,
+security or the like on behalf of the
+Ultimate Beneficiaries;
+in other persons or entities identified
+Membership Number: 105754
+UDIN: 24105754BKBZNZ7164
+per Paul Alvares
+Partner
+ICAI Firm Registration Number: 324982E/E300003
+Chartered Accountants
+For SR BC & CO LLP
+Based on our examination which included
+test checks, the Holding Company and its
+subsidiaries incorporated in India have used
+accounting software for maintaining its books
+of account which have a feature of recording
+audit trail (edit log) facility and the same has
+operated throughout the year for all relevant
+transactions recorded in the software except
+that, audit trail feature is not enabled for
+certain changes made using privileged/
+administrative access rights, as described in
+Note 72 to the consolidated Ind AS financial
+statements. Further, during the course of our
+audit we did not come across any instance
+of audit trail feature being tampered with in
+respect of the accounting software where
+audit trail has been enabled.
+members of the respective companies at the
+respective ensuing Annual General Meeting.
+The dividend declared is in accordance with
+section 123 of the Act to the extent it applies
+to declaration of dividend.
+vi.
+As stated in Note 45 to the consolidated
+Ind AS financial statements, the respective
+Board of Directors of the Holding Company
+and its subsidiaries, incorporated in India
+have proposed final dividend for the year
+which is subject to the approval of the
+The interim dividend declared and paid during
+the year by the Holding Company and its
+subsidiaries incorporated in India and until
+the date of the respective audit reports of
+such Holding Company and its subsidiaries is
+in accordance with section 123 of the Act.
+The final dividend paid by the Holding
+Company and its subsidiaries incorporated
+in India during the year in respect of the
+same declared for the previous year is in
+accordance with section 123 of the Act to the
+extent it applies to payment of dividend.
+Based on the audit procedures that
+have been considered reasonable
+and appropriate in the circumstances
+performed by us and that performed by
+the auditors of the subsidiaries, which
+are companies incorporated in India
+whose financial statements have been
+audited under the Act, nothing has
+come to our or other auditor's notice
+that has caused us or the other auditors
+to believe that the representations
+under sub-clause (a) and (b) contain any
+material mis-statement.
+(c)
+V.
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+208
+Patient First. Always.
+in any manner whatsoever by or on
+behalf of the Funding Party ("Ultimate
+Beneficiaries") or provide any guarantee,
+security or the like on behalf of the
+Ultimate Beneficiaries; and
+(b) The respective managements of the
+Holding Company and its subsidiaries,
+which are companies incorporated
+in India whose financial statements
+have been audited under the Act have
+represented to us and the other auditors
+of such subsidiaries that, to the best of
+its knowledge and belief, no funds have
+been received by the respective Holding
+Company or any of such subsidiaries
+from any person(s) or entity(ies),
+including foreign entities ("Funding
+Parties"), with the understanding,
+whether recorded in writing or
+otherwise, that the Holding Company or
+any of such subsidiaries shall, whether,
+directly or indirectly, lend or invest
+Disclosure of Material related party transaction as per Company's policy
+(b) In our opinion, proper books of account as
+required by law relating to preparation of the
+aforesaid consolidation of the financial statements
+have been kept so far as it appears from our
+examination of those books and reports of the
+other auditors except for the matters stated in
+the paragraph i(vi) below on reporting under Rule
+11(g);
+As required by Section 143(3) of the Act, based on our
+audit and on the consideration of report of the other
+auditors on separate financial statements and the
+other financial information of subsidiaries, as noted in
+the 'other matter' paragraph we report, to the extent
+applicable, that:
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+• Evaluate the appropriateness of accounting policies used
+and the reasonableness of accounting estimates and
+related disclosures made by management.
+• Obtain an understanding of internal control relevant to
+the audit in order to design audit procedures that are
+appropriate in the circumstances. Under section 143(3)
+(i) of the Act, we are also responsible for expressing our
+opinion on whether the Holding Company has adequate
+internal financial controls with reference to financial
+statements in place and the operating effectiveness of
+such controls.
+• Identify and assess the risks of material misstatement
+of the consolidated Ind AS financial statements,
+whether due to fraud or error, design and perform audit
+procedures responsive to those risks, and obtain audit
+evidence that is sufficient and appropriate to provide a
+basis for our opinion. The risk of not detecting a material
+misstatement resulting from fraud is higher than for
+one resulting from error, as fraud may involve collusion,
+forgery, intentional omissions, misrepresentations, or the
+override of internal control.
+As part of an audit in accordance with SAs, we exercise
+professional judgement and maintain professional skepticism
+throughout the audit. We also:
+Auditor's Responsibilities for the Audit of the
+Consolidated Ind AS Financial Statements
+Those respective Board of Directors of the companies
+included in the Group and of its associates and joint venture
+are also responsible for overseeing the financial reporting
+process of the Group and of its associates and joint venture.
+In preparing the consolidated Ind AS financial statements,
+the respective Board of Directors of the companies included
+in the Group and of its associates and joint venture are
+responsible for assessing the ability of the Group and of its
+associates and joint venture to continue as a going concern,
+disclosing, as applicable, matters related to going concern
+and using the going concern basis of accounting unless
+management either intends to liquidate the Group or to
+cease operations, or has no realistic alternative but to do so.
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+The Holding Company's Board of Directors is responsible
+for the preparation and presentation of these consolidated
+Ind AS financial statements in terms of the requirements
+of the Act that give a true and fair view of the consolidated
+financial position, consolidated financial performance
+including other comprehensive income, consolidated cash
+flows and consolidated statement of changes in equity
+of the Group including its associates and joint venture
+in accordance with the accounting principles generally
+accepted in India, including the Indian Accounting Standards
+(Ind AS) specified under section 133 of the Act read with
+the Companies (Indian Accounting Standards) Rules, 2015,
+as amended. The respective Board of Directors of the
+companies included in the Group and of its associates and
+joint venture are responsible for maintenance of adequate
+accounting records in accordance with the provisions of
+the Act for safeguarding of the assets of the Group and
+of its associates and joint venture and for preventing and
+detecting frauds and other irregularities; selection and
+application of appropriate accounting policies; making
+judgements and estimates that are reasonable and prudent;
+and the design, implementation and maintenance of
+adequate internal financial controls, that were operating
+effectively for ensuring the accuracy and completeness
+of the accounting records, relevant to the preparation
+and presentation of the consolidated Ind AS financial
+statements that give a true and fair view and are free from
+material misstatement, whether due to fraud or error,
+which have been used for the purpose of preparation of the
+consolidated Ind AS financial statements by the Directors of
+the Holding Company, as aforesaid.
+Responsibilities of Management for the Consolidated Ind
+AS Financial Statements
+In connection with our audit of the consolidated Ind AS
+financial statements, our responsibility is to read the other
+information and, in doing so, consider whether such other
+information is materially inconsistent with the consolidated
+Ind AS financial statements or our knowledge obtained in
+the audit or otherwise appears to be materially misstated.
+If, based on the work we have performed, we conclude that
+there is a material misstatement of this other information,
+we are required to report that fact. We have nothing to
+report in this regard.
+Our opinion on the consolidated Ind AS financial statements
+does not cover the other information and we do not express
+any form of assurance conclusion thereon.
+The Holding Company's Board of Directors is responsible
+for the other information. The other information comprises
+the information included in the Annual report, but does not
+include the consolidated Ind AS financial statements and our
+auditor's report thereon.
+Other Information
+204
+205
+(a) We/the other auditors whose report we have
+relied upon have sought and obtained all the
+information and explanations which to the best of
+our knowledge and belief were necessary for the
+purposes of our audit of the aforesaid consolidated
+Ind AS financial statements;
+• Conclude on the appropriateness of management's use
+of the going concern basis of accounting and, based
+on the audit evidence obtained, whether a material
+uncertainty exists related to events or conditions that
+may cast significant doubt on the ability of the Group
+and its associates and joint venture to continue as a going
+concern. If we conclude that a material uncertainty exists,
+we are required to draw attention in our auditor's report
+to the related disclosures in the consolidated Ind AS
+financial statements or, if such disclosures are inadequate,
+to modify our opinion. Our conclusions are based on the
+audit evidence obtained up to the date of our auditor's
+report. However, future events or conditions may cause
+the Group and its associates and joint venture to cease to
+continue as a going concern.
+• Obtain sufficient appropriate audit evidence regarding
+the financial information of the entities or business
+activities within the Group and its associates and joint
+venture of which we are the independent auditors
+and whose financial information we have audited, to
+express an opinion on the consolidated Ind AS financial
+statements. We are responsible for the direction,
+supervision and performance of the audit of the
+financial statements of such entities included in the
+consolidated Ind AS financial statements of which we
+are the independent auditors. For the other entities
+included in the consolidated Ind AS financial statements,
+which have been audited by other auditors, such other
+auditors remain responsible for the direction, supervision
+and performance of the audits carried out by them. We
+remain solely responsible for our audit opinion.
+2.
+Report on Other Legal and Regulatory Requirements
+1. As required by the Companies (Auditor's Report) Order,
+2020 ("the Order"), issued by the Central Government
+of India in terms of sub-section (11) of section 143 of
+the Act, based on our audit and on the consideration
+of report of the other auditors on separate financial
+statements and the other financial information of the
+subsidiary companies, incorporated in India, as noted in
+the 'Other Matter' paragraph we give in the "Annexure
+1" a statement on the matters specified in paragraph
+3(xxi) of the Order.
+Our opinion above on the consolidated Ind AS
+financial statements, and our report on Other Legal
+and Regulatory Requirements below, is not modified
+in respect of the above matters with respect to our
+reliance on the work done and the reports of the
+other auditors and the financial statements and other
+financial information certified by management.
+(d) The consolidated Ind AS financial statements also
+include the Group's share of net loss of 384.1 Million
+for the year ended March 31, 2024, as considered in
+the consolidated Ind AS financial statements, in respect
+of 9 associates and a joint venture, whose financial
+statements, other financial information have not been
+audited and whose unaudited financial statements,
+other unaudited financial information have been
+furnished to us by management. Our opinion, in so far
+as it relates amounts and disclosures included in respect
+of these associates and joint venture, and our report in
+terms of sub-sections (3) of Section 143 of the Act in
+so far as it relates to the aforesaid associates and joint
+venture, is based solely on such unaudited financial
+statements and other unaudited financial information.
+In our opinion and according to the information
+and explanations given to us by management, these
+financial statements and other financial information are
+not material to the Group.
+The accompanying consolidated Ind AS financial
+statements include unaudited financial statements
+and other unaudited financial information in respect
+of 4 subsidiaries, whose financial statements and
+other financial information, without giving effect to
+the elimination of intra-group transactions, reflect
+total assets of 7.5 Million as at March 31, 2024,
+and total revenues of Nil and net cash outflows of
+11.3 Million for the year ended on that date. These
+unaudited financial statements have been furnished to
+us by management. Our opinion, in so far as it relates
+amounts and disclosures included in respect of these
+subsidiaries, and our report in terms of sub-sections
+(3) of Section 143 of the Act in so far as it relates to
+the aforesaid subsidiaries, is based solely on such
+unaudited financial statements and other unaudited
+financial information. In our opinion and according
+to the information and explanations given to us by
+management, these financial statements and other
+financial information are not material to the Group.
+outflows of 454.4 Million for the year ended on that
+date. These financial statements have been prepared
+in accordance with accounting principles generally
+accepted in their respective countries for statutory
+purposes and have been audited by other auditors.
+The Holding Company's management has converted
+the financial statements of such subsidiaries located
+outside India from accounting principles generally
+accepted in their respective countries to accounting
+principles generally accepted in India. In the opinion of
+management these are not material to the Group. We
+have not audited these conversion adjustments made
+by the Holding Company's management. Our opinion
+in so far as it relates to the balances and affairs of such
+subsidiaries located outside India is based on the report
+of other auditors and the conversion adjustments
+prepared by management of the Holding Company.
+(c)
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+206
+Patient First. Always.
+(b) The accompanying consolidated Ind AS financial
+statements include unaudited financial statements
+and other unaudited financial information in respect
+of 16 subsidiaries, whose financial statements and
+other financial information, without giving effect to
+the elimination of intra-group transactions, reflect
+total assets of ₹12,223.2 Million as at March 31, 2024,
+and total revenues of 8,267.3 Million and net cash
+Certain of these subsidiaries are located outside
+India whose financial statements and other financial
+information have been prepared in accordance with
+accounting principles generally accepted in their
+respective countries and which have been audited
+by other auditors under generally accepted auditing
+standards applicable in their respective countries. The
+Holding Company's management has converted the
+financial statements of such subsidiary located outside
+India from accounting principles generally accepted
+in their respective countries to accounting principles
+generally accepted in India. We have audited these
+conversion adjustments made by the Holding Company's
+management. Our opinion in so far as it relates to the
+balances and affairs of such subsidiary located outside
+India is based on the report of other auditors and the
+conversion adjustments prepared by management of the
+Holding Company and audited by us.
+(a) We did not audit the financial statements and other
+financial information, in respect of 23 subsidiaries,
+whose financial statements, without giving effect to
+the elimination of intra-group transactions, include
+total assets of 454,175.5 Million as at March 31,
+2024, and total revenues of 158,555.2 Million and net
+cash inflows of 44,998.8 Million for the year ended
+on that date. These Ind AS financial statement and
+other financial information have been audited by other
+auditors, whose financial statements, other financial
+information and auditor's reports have been furnished
+to us by management. Our opinion on the consolidated
+Ind AS financial statements, in so far as it relates to the
+amounts and disclosures included in respect of these
+subsidiaries and our report in terms of sub-sections (3)
+of Section 143 of the Act, in so far as it relates to the
+aforesaid subsidiaries, is based solely on the reports of
+such other auditors.
+Other Matter
+financial statements for the financial year ended March
+31, 2024 and are therefore the key audit matters. We
+describe these matters in our auditor's report unless law or
+regulation precludes public disclosure about the matter or
+when, in extremely rare circumstances, we determine that a
+matter should not be communicated in our report because
+the adverse consequences of doing so would reasonably
+be expected to outweigh the public interest benefits of
+such communication.
+From the matters communicated with those charged with
+governance, we determine those matters that were of
+most significance in the audit of the consolidated Ind AS
+We also provide those charged with governance with a
+statement that we have complied with relevant ethical
+requirements regarding independence, and to communicate
+with them all relationships and other matters that may
+reasonably be thought to bear on our independence, and
+where applicable, related safeguards.
+We communicate with those charged with governance of
+the Holding Company and such other entities included in the
+consolidated Ind AS financial statements of which we are the
+independent auditors regarding, among other matters, the
+planned scope and timing of the audit and significant audit
+findings, including any significant deficiencies in internal
+control that we identify during our audit.
+• Evaluate the overall presentation, structure and content
+of the consolidated Ind AS financial statements,
+including the disclosures, and whether the consolidated
+Ind AS financial statements represent the underlying
+transactions and events in a manner that achieves
+fair presentation.
+Ind AS-24 - "RELATED PARTY DISCLOSURES"
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+14.8
+142.0
+* 152.1
+218.4
+166.9
+150.0
+200.0
+150.0
+200.0
+255.6
+248.9
+255.6
+248.9
+31.9
+39.1
+14.4
+16.6
+46.3
+55.7
+76.4
+4,346.9
+24.6
+#Key Management Personnel (KMP) and Relatives of KMP who are under the employment of the Company are entitled to post employment
+benefits and other long term employee benefits recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee
+benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above and there is no Share-based payments
+to Key Management Personnel of Company.
+Payable
+Others
+Subsidiaries
+Receivables
+March 31, 2023
+March 31, 2024
+As at
+As at
+in Million
+(Annexure 'A')
+Balance outstanding as at the end of the year
+Ind AS-24 - "RELATED PARTY DISCLOSURES"
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+200
+Patient First. Always.
+* Includes remuneration paid to Aalok D. Shanghvi till the date of appointment as Whole-time Director of the Company.
+19.5
+Subsidiaries
+7,622.0
+7,622.0
+Rent expense / Payment towards Lease Liabilities
+Others
+Subsidiaries
+Lease rental and hire charges (Income)
+Subsidiaries
+Interest expense
+Subsidiaries
+Interest income
+Subsidiaries
+Loan repaid
+Subsidiaries
+Loan taken
+Type of Transaction
+(II) Detail of related party transaction during the year ended March 31, 2024:
+Ind AS-24 - "RELATED PARTY DISCLOSURES"
+for the year ended March 31, 2024
+Notes to the Standalone Financial Statements
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+CSR
+4,346.9
+Others
+Key management personnel (#)
+1,720.3
+2,685.0
+1,720.3
+2,685.0
+54,929.6
+111,125.6
+54,929.6
+111,125.6
+82,140.5
+145,618.4
+82,140.5
+145,618.4
+Year ended
+March 31, 2023
+Year ended
+March 31, 2024
+in Million
+(Annexure 'A')
+199
+Sitting Fees and Commission paid to Independent Directors
+Relatives of Key management personnel
+Remuneration
+Place of Signature: Mumbai
+Date: May 22, 2024
+80,800.4
+80,795.6
+264.4
+331.5
+Subsidiaries
+264.4
+331.5
+Accrued Interest income on loans and advances
+467.7
+1,114.8
+Subsidiaries
+467.7
+1,114.8
+Advance (includes capital and supply of goods/services)
+544.2
+50.8
+Subsidiaries
+544.2
+50.8
+Advance from customers
+37,685.9
+Accrued Interest from borrowings
+4,548.8
+10,772.0
+Subsidiaries
+Financial Statements
+Standalone
+Corporate Overview Statutory Reports
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(b) Provision includes obligation arising from a supply contract to Sun Laboratories FZE, a wholly owned subsidiary of the
+Company amounting to ₹1,016.1 Million (March 31, 2023: 3,352.7 Million).
+(a) Transactions with related parties are made on an arm's length basis. Outstanding trade balances at the year-end
+are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related
+party receivables or payables. As on year ended March 31, 2024, the Company has credit impairment of receivables
+relating to amounts owed by related parties (wholly owned subsidiaries) amounting to ₹54.9 Million (March 31, 2023:
+* 54.9 Million).
+1,713.5
+1,606.8
+Subsidiaries
+1,713.5
+1,606.8
+3,352.7
+1,016.1
+3,352.7
+1,016.1
+3,912.2
+10,772.0
+Lease liabilities
+Subsidiaries
+Provisions
+3,912.2
+64,156.4
+37,685.9
+0.9
+Security Deposit given
+Subsidiaries
+Loan given
+Subsidiaries
+Loan taken
+107.1
+106.4
+Others
+0.9
+Independent Directors
+0.1
+Associates
+6,969.3
+3,869.0
+7,076.4
+3,976.4
+1.1
+4.8
+64,155.3
+Subsidiaries
+4,548.8
+Security Deposit Received
+Others
+0.9
+0.1
+0.1
+1.0
+1.0
+73.4
+73.4
+73.4
+73.4
+39,688.3
+40,290.1
+39,688.3
+40,290.1
+75,867.3
+110,360.1
+75,867.3
+110,360.1
+Subsidiaries
+Other liabilities
+Subsidiaries
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Our objectives are to obtain reasonable assurance about
+whether the consolidated Ind AS financial statements as
+a whole are free from material misstatement, whether
+due to fraud or error, and to issue an auditor's report that
+includes our opinion. Reasonable assurance is a high level
+of assurance, but is not a guarantee that an audit conducted
+in accordance with SAS will always detect a material
+misstatement when it exists. Misstatements can arise from
+fraud or error and are considered material if, individually
+or in the aggregate, they could reasonably be expected to
+influence the economic decisions of users taken on the basis
+of these consolidated Ind AS financial statements.
+(529.6)
+Changes from financing cash flows
+Opening balance
+(236.6)
+Derivatives, net
+[(liabilities) /asset]
+61,978.8
+Borrowings
+Year ended March 31, 2024
+* in Million
+46,237.3
+21.4
+94.9
+32,249.3
+13,871.7
+865.0
+24,183.3
+68,430.8
+224.4
+18.0
+92,856.5
+in Million
+As at
+March 31, 2023
+March 31, 2024
+As at
+Particulars
+Change in financial liability/ asset arising from financing activities
+Cash and cash equivalents (Refer Note 14)
+Cash on hand
+Cheques, drafts on hand
+In deposit accounts with original maturity less than 3 months
+In current accounts
+Balances with banks
+Cash and cash equivalents comprises of
+Particulars
+Notes:
+1,570.7
+46,237.3
+Taken over on acquisition
+The effect of changes in foreign exchange rates
+Closing balance
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(33,899.3)
+(1,102.6)
+(63.8)
+6,934.8
+768.2
+Total (A)
+6,485.5
+871.4
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview Statutory Reports
+Financial Statements
+Consolidated
+Consolidated Statement of Profit and Loss
+for the year ended March 31, 2024
+Particulars
+Notes
+92,856.5
+Year ended
+March 31, 2024
+in Million
+Year ended
+March 31, 2023
+(B)
+Items that may be reclassified to profit or loss
+(a)
+Gain/(loss) on debt instruments measured at fair value through other
+comprehensive income
+Income tax on above
+926.0
+(247.7)
+(61.0)
+(3.8)
+28,456.9
+360.7
+16.7
+215
+Income tax on above
+(739.9)
+5,666.9
+Year ended
+March 31, 2023
+in Million
+Year ended
+March 31, 2024
+Financial Statements
+Consolidated
+Particulars
+for the year ended March 31, 2024
+Consolidated Statement of Cash Flow
+Corporate Overview Statutory Reports
+218
+Patient First. Always.
+1,324.0
+(79,436.8)
+(6,902.0)
+Net cash flow from (used in) investing activities (B)
+991.4
+Dividend received
+3,179.3
+6,132.0
+Interest received
+(46,858.2)
+(1,433.2)
+Acquisition of subsidiary
+1,488.7
+14,960.3
+Fixed deposits / margin money matured
+(7,251.0)
+(15,670.1)
+Fixed deposits / margin money placed
+Bank balances not considered as cash and cash equivalents
+208,968.4
+C.
+Cash flow from financing activities
+Proceeds from borrowings
+45,726.5
+12.9
+Cash and cash equivalents taken over on acquisition of subsidiary
+45,082.5
+46,237.3
+(6,082.8)
+47,346.2
+23,760.7
+(67,101.6)
+(25,188.8)
+(28,981.7)
+(8.5)
+(25.4)
+(1,324.8)
+(2,190.3)
+Effect of exchange differences on restatement of foreign currency cash and cash equivalents
+Cash and cash equivalents at the end of the year
+(1,304.9)
+(773.9)
+Cash and cash equivalents at the beginning of the year
+Net cash flow from/ (used in) financing activities (C)
+Dividend paid
+Net increase / (decrease) in working capital demand loans
+Finance costs (including interest on lease liabilities) paid
+Dividend payment to non-controlling interests
+Payment for buy-back of equity shares held by non-controlling interests of subsidiaries
+Net (decrease) / increase in cash and cash equivalents (A+B+C)
+(1,013.8)
+(1,231.0)
+Repayment of principal portion of lease liabilities
+(28,996.3)
+(81,055.9)
+Repayment of borrowings
+81,597.8
+1,430.1
+300,944.7
+832.0
+Gain/(loss) on equity instruments measured at fair value through other
+comprehensive income
+in Million
+Notes
+Year ended
+March 31, 2024
+Year ended
+March 31, 2023
+30
+484,968.5
+438,856.8
+31
+13,541.9
+6,345.2
+498,510.4
+445,202.0
+Cost of materials consumed
+32
+69,043.3
+77,775.7
+Purchases of stock-in-trade
+34,661.5
+35,715.0
+Changes in inventories of finished goods, stock-in-trade and work-in-progress
+33
+2,921.3
+(6,869.1)
+Employee benefits expense
+34
+94,290.6
+82,960.3
+Finance costs
+(IV) Expenses
+(III) Total income (I+II)
+(11) Other income
+(1) Revenue from operations
+6,427.2
+28
+53,575.6
+53,543.8
+29
+4,117.0
+169,837.7
+3,087.1
+199,063.8
+3C
+6.3
+6.2
+183,569.1
+854,628.8
+214,281.2
+807,435.9
+For and on behalf of the Board of Directors of
+35
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Chairman and Managing Director
+(DIN: 00005588)
+AALOK D. SHANGHVI
+Whole-time Director
+(DIN: 01951829)
+ANOOP DESHPANDE
+Company Secretary and Compliance Officer
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 22, 2024
+Patient First. Always.
+214
+Corporate Overview Statutory Reports
+Financial Statements
+Consolidated
+Consolidated Statement of Profit and Loss
+for the year ended March 31, 2024
+Particulars
+DILIP S. SHANGHVI
+8,037.4
+2,384.7
+Depreciation and amortisation expense
+(A) Items that will not be reclassified to profit or loss
+19,893.0
+18,692.2
+(5,498.5)
+(10,216.3)
+49
+199
+14,394.5
+8,475.9
+96,484.4
+85,608.4
+(382.7)
+(1.4)
+96,100.3
+(476.7)
+(2.3)
+85,129.4
+14
+71
+336.5
+95,763.8
+393.6
+84,735.8
+(a)
+Gain/(loss) on remeasurement of the defined benefit plans
+Income tax on above
+(690.8)
+157.4
+241.5
+(54.2)
+(449.3)
+103.2
+(b)
+(XV) Other comprehensive income
+(XIV) Profit for the year attributable to owners of the parent company (XII-XIII)
+(XIII) Non-controlling interests
+(XII) Profit for the year before non-controlling interests (IX+X+XI)
+3 (A & B)
+25,566.4
+25,294.3
+Other expenses
+36
+154,181.8
+131,546.0
+Net (gain) / loss on foreign currency transactions
+(361.3)
+Total expenses (IV)
+382,688.3
+1,261.0
+349,403.2
+(V) Profit before exceptional items and tax (III-IV)
+115,822.1
+1,720.0
+95,798.8
+61
+4,943.2
+1,714.5
+(VII) Profit before tax (V-VI)
+110,878.9
+94,084.3
+(VIII) Tax expense/(credit)
+Current tax
+Deferred tax
+Total tax expense (VIII)
+(IX) Profit for the year before share of profit/(loss) of associates and joint venture (VII-VIII)
+(X)
+Share of profit/(loss) of associates (net of tax)
+236.6
+(VI) Exceptional items
+Proceeds from sale of investments (others)
+(1,554.9)
+(218,087.4)
+(290,044.5)
+84,735.8
+-
+510,661.1
+184.7 480,112.2
+47,935.1
+hedges
+reserve
+of parent
+company
+Total
+Effective
+portion of
+cash flow
+translation
+Foreign
+currency
+Equity
+instrument
+through
+OCI
+10,844.6
+Debt
+instrument
+through
+OCI
+(769.6) 2,392.6
+285.5 35,621.0 376,456.5
+84,735.8
+7.5
+43.8
+2,399.3 3,681.7 11,874.1
+Retained
+earnings
+General
+reserve
+Legal
+reserve
+Capital
+redemption
+reserve
+reserve
+capital Capital Securities Amalgamation
+reserve premium
+to owners
+Equity
+share
+Attributable
+Other comprehensive income (OCI)
+85,129.4
+20,059.8
+20,059.8
+22,409.3
+Payment of dividend
+Exchange difference arising on translation of foreign
+operations/ net investment in foreign operations, net of tax
+Other comprehensive income for the year, net of tax
+Total comprehensive income for the year
+Profit for the year
+Balance as at March 31, 2023
+Payment of dividend
+Exchange difference arising on translation of foreign
+operations/ net investment in foreign operations, net of tax
+Other comprehensive income for the year, net of tax
+Total comprehensive income for the year
+Profit for the year
+Balance as at March 31, 2022
+3,786.5
+2,940.4
+96,100.3
+95,763.8
+593,154.7
+559,953.8
+Reserves and surplus
+(206.1)
+(25,201.5)
+(25,193.0)
+107,695.1
+105,034.6
+(390.8)
+(241.6) 768.2 20,059.8
+156.4
+239.0
+(390.8)
+(241.6) 768.2
+* 103.2
+84,839.0
+(25,193.0)
+285.5 35,621.0 436,102.5
+95,763.8
+7.5
+43.8
+2,399.3 3,681.7 11,874.1
+(1,011.2) 3,160.8 67,994.9
+2,940.4
+Other equity
+* in Million
+22,565.7
+11,421.3
+21,694.3
+4,935.8
+Earnings per equity share (face value per equity share - 1)
+Non-controlling interests
+Owners of the parent company
+Total comprehensive income for the year attributable to:
+Owners of the parent company
+Non-controlling interests
+Other comprehensive income for the year attributable to:
+(XVI) Total comprehensive income for the year (XII+XV)
+(XV) Total other comprehensive income (A + B)
+Total (B)
+22,409.3
+3,786.5
+(504.4)
+(2,295.9)
+22,913.7
+6,082.4
+Exchange differences in translating the financial statements of foreign operations
+Exchange differences on translation of net investment in foreign operations
+(c)
+(463.5)
+284.3
+66.1
+(29.9)
+(251.5)
+(b)
+Effective portion of gain/(loss) on designated portion of hedging instruments in
+a cash flow hedge
+314.2
+107,521.6
+107,695.1
+10,413.2
+1,008.1
+20,298.8
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Particulars
+for the year ended March 31, 2024
+Consolidated Statement of Changes in Equity
+Patient First. Always.
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 22, 2024
+Company Secretary and Compliance Officer
+ANOOP DESHPANDE
+AALOK D. SHANGHVI
+Whole-time Director
+(DIN: 01951829)
+(DIN: 00005588)
+Chairman and Managing Director
+DILIP S. SHANGHVI
+For and on behalf of the Board of Directors of
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+35.3
+216
+35.3
+Mumbai, May 22, 2024
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No.: 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+The accompanying notes are an integral part of the consolidated financial statements.
+As per our report of even date
+Diluted (in)
+Basic (in)
+51
+105,034.6
+2,660.5
+106,177.0
+1,344.6
+2,266.9
+39.9
+39.9
+* (449.6)
+95,314.2
+6,934.8
+752.5
+752.5 6,934.8 2,940.4
+Increase (Decrease) in trade payables
+(Increase) / Decrease in other assets
+(Increase) Decrease in trade receivables
+(12,022.0)
+5,988.1
+(Increase) Decrease in inventories
+Movements in working capital:
+121,309.9
+126,422.9
+Operating profit before working capital changes
+3,368.1
+(2,499.2)
+Effect of exchange rate changes
+(150.7)
+(292.1)
+2,070.5
+905.9
+Provision/impairment / write off/(reversal) for doubtful trade receivables / advances/loans
+Sundry balances written back, net
+240.3
+102.0
+(1,847.1)
+(3,301.1)
+1,613.0
+2,277.2
+Net (gain) / loss arising on financial assets measured at fair value through profit or loss
+Net (gain) / loss on sale of financial assets measured at fair value through profit or loss
+Net (gain) / loss on sale of financial assets measured at fair value through other
+comprehensive income
+(1,464.5)
+(1,033.0)
+Dividend income on investments
+(3,845.4)
+Increase (Decrease) in other liabilities
+Increase (Decrease) in provisions
+Cash generated from operations
+3,528.9
+Others
+(865.9)
+Associates
+Purchase of investments
+(207.0)
+210.1
+308.4
+Proceeds from disposal of property, plant and equipment and other intangible assets
+Loans given
+(20,855.8)
+(22,018.1)
+Payments for purchase of property, plant and equipment (including capital work-in-
+progress, other intangible assets and intangible assets under development)
+Cash flow from investing activities
+B.
+49,593.3
+(10,229.1)
+121,349.8
+(15,098.4)
+(15,694.4)
+Net Income tax (paid) / refund received (including interest on refunds)
+64,691.7
+137,044.2
+(38,038.6)
+36.9
+(6,691.5)
+2,409.2
+11,823.7
+2,497.2
+(2,158.1)
+(3,839.0)
+(9,531.7)
+Net cash generated from/(used in) operating activities (A)
+Interest income
+1,720.0
+2,384.7
+Chartered Accountants
+For S RBC & CO LLP
+The accompanying notes are an integral part of the consolidated financial statements.
+As per our report of even date
+* Represents remeasurement of the defined benefit plans.
+671,059.7
+29.0 636,667.5
+(258.7) 10,503.5 70,935.3
+407.9
+(407.9)
+285.5 35,621.0 501,545.5
+7.5
+43.8
+3,681.7 11,874.1
+2,399.3
+Balance as at March 31, 2024
+ICAI Firm Registration No.: 324982E/E300003
+Transfer on sale of equity instrument
+Buy-back purchase of equity shares
+Consolidated
+Financial Statements
+Statutory Reports
+Corporate Overview
+164.3
+(773.9)
+(29,007.0)
+107,521.6
+7,634.8
+7,472.8
+106,177.0
+(28,981.6)
+(481.7)
+(481.7)
+(28,981.6)
+235.1
+235.1
+Acquisition during the year
+Income tax on above
+per PAUL ALVARES
+Membership No.: 105754
+Finance costs
+227.1
+1,662.3
+Net (gain) / loss on sale / write off / impairment of property, plant and equipment, other
+intangible assets, intangible assets under development and goodwill
+25,294.3
+25,566.4
+Depreciation and amortisation expense
+94,084.3
+110,878.9
+in Million
+Year ended
+March 31, 2023
+Year ended
+March 31, 2024
+217
+Adjustments for:
+Profit before tax
+Partner
+Cash flow from operating activities
+Particulars
+for the year ended March 31, 2024
+Consolidated Statement of Cash Flow
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+Company Secretary and Compliance Officer
+ANOOP DESHPANDE
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 22, 2024
+AALOK D. SHANGHVI
+Whole-time Director
+(DIN: 01951829)
+Chairman and Managing Director
+(DIN: 00005588)
+DILIP S. SHANGHVI
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+For and on behalf of the Board of Directors of
+Mumbai, May 22, 2024
+A.
+27
+83,580.3
+15,067.0
+Sun Pharmaceutical Industries Limited
+Sun Pharma Laboratories Limited
+L24230GJ1993PLC019050
+U25200GJ1997PLC133846
+Nature of relationship
+Holding Company
+Subsidiary
+Clause number of the CARO report
+which is qualified or is adverse
+i(c), iii(c), iii(e)
+i(c), iii(c), iii(e)
+The audit report under Companies (Auditors Report) Order, 2020 of these companies has not been issued till the date
+of our auditor's report.
+Name
+Remidio Innovative Solutions Private Limited
+Agatsa Software Private Limited
+Ezerx Health Tech Private Limited
+For S RBC & CO LLP
+Chartered Accountants
+ICAI Firm Registration Number: 324982E/E300003
+per Paul Alvares
+CIN
+Partner
+UDIN: 24105754BKBZNZ7164
+Place of Signature: Mumbai
+Date: May 22, 2024
+CIN
+Nature of relationship
+U73100KA2009PTC051546
+Associate
+U72900UP2010PTC101436
+Associate
+U74999WB2018PTC226850
+Associate
+Patient First. Always.
+210
+Corporate Overview Statutory Reports
+Membership Number: 105754
+Name
+xxi. Qualifications or adverse remarks by the respective auditors in the Companies (Auditors Report) Order (CARO) reports
+of the companies included in the consolidated Ind AS financial statements are:
+In terms of the information and explanations sought by us and given by the Company and the books of account and records
+examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:
+10
+23,069.8
+22,850.3
+9
+50,680.9
+6.1
+1,710.4
+35,189.2
+41,036.5
+50
+1,179.5
+8
+8.5
+7
+59,986.2
+6
+361.6
+364.8
+5
+3,474.8
+Re: Sun Pharmaceutical Industries Limited (the "Company")
+209
+Annexure 1 referred to in paragraph 1 of our report of even date under the heading "Report on Other Legal and
+Regulatory Requirements"
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+15,930.9
+Financial Statements
+Consolidated
+3B
+53,170.3
+3E
+42,461.5
+40,098.1
+4
+4,061.3
+44,201.1
+10
+Annexure 2 to the Independent Auditor's Report of even date on the consolidated Ind AS financial statements of Sun
+Pharmaceutical Industries Limited
+In conjunction with our audit of the consolidated Ind AS
+financial statements of Sun Pharmaceutical Industries
+Limited (hereinafter referred to as the "Holding Company")
+as of and for the year ended March 31, 2024, we have
+audited the internal financial controls with reference to
+consolidated Ind AS financial statements of the Holding
+Company and its subsidiaries companies, which are
+companies incorporated in India, as of that date.
+(c) Goodwill (Net)
+(d) Other intangible assets
+(e) Intangible assets under development
+(f) Investment in associates (using equity method)
+(g) Investment in joint venture (using equity method)
+(h) Financial assets
+(i) Investments
+(ii) Loans
+(iii) Other financial assets
+(i) Deferred tax assets (Net)
+(j) Income tax assets (Net)
+(k) Other non-current assets
+Total non-current assets
+(2) Current assets
+(b) Capital work-in-progress
+(a) Inventories
+Financial Statements
+Consolidated
+in Million
+As at
+Notes
+March 31, 2024
+As at
+March 31, 2023
+3A (I) & (II)
+101,923.2
+103,903.8
+3D
+11,077.3
+9,633.5
+47
+85,989.5
+(b) Financial assets
+(a) Property, plant and equipment
+(1) Non-current assets
+ASSETS
+Management's Responsibility for Internal Financial
+Controls
+The respective Board of Directors of the Holding Company
+and its subsidiaries companies, which are companies
+incorporated in India, are responsible for establishing and
+maintaining internal financial controls based on the internal
+control over financial reporting criteria established by the
+Holding Company considering the essential components
+of internal control stated in the Guidance Note on Audit of
+Internal Financial Controls Over Financial Reporting issued
+by the Institute of Chartered Accountants of India (ICAI).
+These responsibilities include the design, implementation
+and maintenance of adequate internal financial controls
+that were operating effectively for ensuring the orderly and
+efficient conduct of its business, including adherence to
+the respective company's policies, the safeguarding of its
+assets, the prevention and detection of frauds and errors,
+the accuracy and completeness of the accounting records,
+and the timely preparation of reliable financial information,
+as required under the Companies Act, 2013.
+Auditor's Responsibility
+Our responsibility is to express an opinion on the Holding
+Company's internal financial controls with reference to
+consolidated Ind AS financial statements based on our audit.
+We conducted our audit in accordance with the Guidance
+Note on Audit of Internal Financial Controls Over Financial
+Reporting (the "Guidance Note") and the Standards on
+Auditing, specified under section 143(10) of the Act, to the
+extent applicable to an audit of internal financial controls,
+both, issued by ICAI. Those Standards and the Guidance
+Note require that we comply with ethical requirements and
+plan and perform the audit to obtain reasonable assurance
+about whether adequate internal financial controls with
+reference to consolidated Ind AS financial statements was
+established and maintained and if such controls operated
+effectively in all material respects.
+Our audit involves performing procedures to obtain audit
+evidence about the adequacy of the internal financial
+controls with reference to consolidated Ind AS financial
+statements and their operating effectiveness. Our audit of
+internal financial controls with reference to consolidated Ind
+AS financial statements included obtaining an understanding
+of internal financial controls with reference to consolidated
+Ind AS financial statements, assessing the risk that a material
+weakness exists, and testing and evaluating the design
+and operating effectiveness of internal control based on
+the assessed risk. The procedures selected depend on the
+auditor's judgement, including the assessment of the risks of
+material misstatement of the financial statements, whether
+due to fraud or error.
+We believe that the audit evidence we have obtained and
+the audit evidence obtained by the other auditors in terms
+of their reports referred to in the Other Matters paragraph
+below, is sufficient and appropriate to provide a basis for
+our audit opinion on the internal financial controls with
+reference to consolidated Ind AS financial statements.
+Meaning of Internal Financial Controls With Reference
+to Consolidated Ind AS Financial Statements
+A company's internal financial control with reference
+to consolidated Ind AS financial statements is a process
+designed to provide reasonable assurance regarding the
+reliability of financial reporting and the preparation of
+financial statements for external purposes in accordance
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated
+211
+with generally accepted accounting principles. A company's
+internal financial control with reference to consolidated
+Ind AS financial statements includes those policies and
+procedures that (1) pertain to the maintenance of records
+that, in reasonable detail, accurately and fairly reflect the
+transactions and dispositions of the assets of the company;
+(2) provide reasonable assurance that transactions are
+recorded as necessary to permit preparation of financial
+statements in accordance with generally accepted
+accounting principles, and that receipts and expenditures
+of the company are being made only in accordance with
+authorisations of management and directors of the
+company; and (3) provide reasonable assurance regarding
+prevention or timely detection of unauthorised acquisition,
+use, or disposition of the company's assets that could have a
+material effect on the financial statements.
+Inherent Limitations of Internal Financial Controls With
+Reference to Consolidated Ind AS Financial Statements
+Because of the inherent limitations of internal financial
+controls with reference to consolidated Ind AS financial
+statements, including the possibility of collusion or improper
+management override of controls, material misstatements
+due to error or fraud may occur and not be detected.
+Also, projections of any evaluation of the internal financial
+controls with reference to consolidated Ind AS financial
+statements to future periods are subject to the risk that the
+internal financial controls with reference to consolidated Ind
+AS financial statements may become inadequate because of
+changes in conditions, or that the degree of compliance with
+the policies or procedures may deteriorate.
+Opinion
+In our opinion, the Holding Company and its subsidiaries
+companies, which are companies incorporated in India, have,
+maintained in all material respects, adequate internal financial
+controls with reference to consolidated Ind AS financial
+statements and such internal financial controls with reference
+to consolidated Ind AS financial statements were operating
+effectively as at March 31, 2024, based on the internal control
+over financial reporting criteria established by the Holding
+Company considering the essential components of internal
+control stated in the Guidance Note issued by the ICAI.
+Particulars
+as at March 31, 2024
+Consolidated Balance Sheet
+Corporate Overview Statutory Reports
+212
+Patient First. Always.
+Report on the Internal Financial Controls under Clause
+(i) of Sub-section 3 of Section 143 of the Companies Act,
+2013 ("the Act")
+Place of Signature: Mumbai
+Date: May 22, 2024
+per Paul Alvares
+Partner
+ICAI Firm Registration Number: 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+Our report under Section 143(3)(i) of the Act on the
+adequacy and operating effectiveness of the internal
+financial controls with reference to consolidated Ind AS
+financial statements of the Holding Company, in so far as
+it relates to 2 subsidiaries companies, which are companies
+incorporated in India, are based on the corresponding reports
+of the auditors of such subsidiaries incorporated in India.
+Other Matters
+Membership Number: 105754
+UDIN: 24105754BKBZNZ7164
+4,739.3
+(XI) Share of profit/(loss) of joint venture (net of tax)
+419,879.0
+(b) Other equity
+20
+634,268.2
+557,554.5
+Equity attributable to the equity shareholders of the parent company
+636,667.5
+559,953.8
+Non-controlling interests
+71
+34,392.2
+33,200.9
+Total equity
+671,059.7
+593,154.7
+2,399.3
+Liabilities
+(a) Financial liabilities
+(i)
+Borrowings
+(ii) Lease liabilities
+21
+13.3
+54
+3,022.9
+5,599.1
+(iii) Other financial liabilities
+22
+37.9
+(b) Provisions
+23
+(1) Non-current liabilities
+2,399.3
+19
+(a) Equity share capital
+3,723.7
+(vi) Other financial assets
+17
+9,172.0
+413.2
+7,645.1
+(c) Other current assets
+18
+22,280.1
+19,616.5
+Total current assets
+Assets classified as held for sale
+TOTAL ASSETS
+434,331.1
+3C
+418.7
+854,628.8
+Equity
+March 31, 2023
+in Million
+As at
+March 31, 2024
+Notes
+EQUITY AND LIABILITIES
+4,138.9
+Particulars
+Consolidated Balance Sheet
+213
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+398,619.4
+214.0
+807,435.9
+as at March 31, 2024
+3.429.1
+As at
+50
+1,280.8
+74
+56,533.0
+56,815.2
+26
+650.2
+16
+(v) Loans
+11,465.6
+12,350.3
+15
+(iv) Bank balances other than (iii) above
+46,237.3
+92,856.5
+1,256.9
+(iii) Cash and cash equivalents
+112,493.7
+93,726.1
+85,845.4
+23
+13
+(ii) Trade receivables
+12
+Investments
+(i)
+105,130.5
+98,682.9
+11
+(c) Deferred tax liabilities (Net)
+408,602.5
+114,385.1
+54
+14
+28,443.6
+(iii) Trade payables
+(ii) Lease liabilities
+(i) Borrowings
+(a) Financial liabilities
+15,211.2
+13,725.1
+(iv) Other financial liabilities
+Total non-current liabilities
+4,999.4
+24
+(d) Other non-current liabilities
+61,978.8
+316.9
+1,550.6
+5,828.2
+(b) Other current liabilities
+(2) Current liabilities
+(c) Provisions
+Mumbai, May 22, 2024
+25
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+Chartered Accountants
+For S RBC & CO LLP
+ICAI Firm Registration No.: 324982E/E300003
+TOTAL EQUITY AND LIABILITIES
+Total liabilities
+Liabilities directly associated with assets classified as held for sale
+Total current liabilities
+(d) Current tax liabilities (Net)
+The accompanying notes are an integral part of the consolidated financial statements.
+As per our report of even date
+• Equity instruments measured at fair value
+through other comprehensive income (FVTOCI)
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Debt instruments at amortised cost
+A 'debt instrument' is measured at the amortised
+cost if both the following conditions are met:
+(a) The asset is held within a business model
+whose objective is to hold assets for
+collecting contractual cash flows, and
+(b) Contractual terms of the asset give rise on
+specified dates to cash flows that are solely
+payments of principal and interest (SPPI) on
+the principal amount outstanding.
+Corporate Overview
+for the year ended March 31, 2024
+Financial Statements
+Consolidated
+227
+Notes to the Consolidated Financial Statements
+A 'debt instrument' is measured as at FVTOCI if
+both of the following criteria are met:
+Debt instrument at FVTOCI
+After initial measurement, such financial assets
+are subsequently measured at amortised cost
+using the effective interest rate (EIR) method.
+Amortised cost is calculated by taking into account
+any discount or premium on acquisition and fees
+or costs that are an integral part of the EIR. The
+EIR amortisation is included in Other Income in
+the statement of profit and loss. The losses arising
+from impairment are recognised in the statement
+of profit and loss.
+• Debt instruments and equity instruments at fair
+value through profit or loss (FVTPL)
+Statutory Reports
+• Debt instruments at fair value through other
+comprehensive income (FVTOCI)
+When the Group is committed to a sale plan
+involving loss of control of a subsidiary, all of
+the assets and liabilities of that subsidiary are
+classified as held for sale when the criteria
+described above are met, regardless of whether
+the Group will retain a non-controlling interest in
+its former subsidiary after the sale.
+For purposes of subsequent measurement,
+financial assets are classified in four categories:
+is reversed only to the extent that the asset's
+carrying amount does not exceed the carrying
+amount that would have been determined, net of
+depreciation or amortisation, if no impairment loss
+had been recognised.
+(a)
+i. Non-current assets held for sale
+Non-current assets and disposal groups are
+classified as held for sale if their carrying amount
+will be recovered principally through a sale
+transaction rather than through continuing use.
+This condition is regarded as met only when the
+asset (or disposal group) is available for immediate
+sale in its present condition subject only to terms
+that are usual and customary for sales of such
+asset (or disposal group) and its sale is highly
+probable. Management must be committed to
+the sale, which should be expected to qualify for
+recognition as a completed sale within one year
+from the date of classification.
+When the Group is committed to a sale plan
+involving disposal of an investment, or a portion of
+an investment, in an associate or joint venture, the
+investment or the portion of the investment that
+will be disposed off is classified as held for sale
+when the criteria described above are met, and the
+Group discontinues the use of the equity method
+in relation to the portion that is classified as held
+for sale.
+Any retained portion of an investment in an
+associate or a joint venture that has not been
+classified as held for sale continues to be
+accounted for using the equity method. The
+Group discontinues the use of the equity method
+at the time of disposal when the disposal results
+in the Group losing significant influence over the
+associate or joint venture.
+After the disposal takes place, the Group accounts
+for any retained interest in the associate or joint
+venture in accordance with Ind AS 109 unless
+the retained interest continues to be an associate
+or a joint venture, in which case the Group uses
+the equity method (see the accounting policy
+regarding investments in associates or joint
+ventures above).
+• Debt instruments at amortised cost
+j.
+as held for sale are measured at the lower of
+their carrying amount and fair value less costs
+to sell. Non-current assets held for sale are not
+depreciated or amortised.
+Financial instruments
+A financial instrument is any contract that gives
+rise to a financial asset of one entity and a financial
+liability or equity instrument of another entity.
+Financial assets
+Initial recognition and measurement
+All financial assets are recognised initially at
+fair value plus, in the case of financial assets
+not recorded at fair value through profit or loss,
+transaction costs that are attributable to the
+acquisition of the financial asset. Purchases or
+sales of financial assets that require delivery
+of assets within a time frame established by
+regulation or convention in the market place
+(regular way trades) are recognised on the date
+the Group commits to purchase or sell the
+financial assets.
+Subsequent measurement
+Non-current assets (and disposal groups) classified
+The objective of the business model is
+achieved both by collecting contractual cash
+flows and selling the financial assets, and
+Equity instruments
+Debt instruments included within the FVTOCI
+category are measured initially as well as at each
+reporting date at fair value. Fair value movements
+are recognised in the other comprehensive income
+(OCI). However, the Group recognises interest
+income, impairment losses and reversals and
+foreign exchange gain or loss in the statement of
+profit and loss. On de-recognition of the asset,
+cumulative gain or loss previously recognised in
+OCI is reclassified from the equity to profit or
+loss. Interest earned whilst holding FVTOCI debt
+instrument is reported as interest income using the
+EIR method.
+On de-recognition of a financial asset in its
+entirety, the difference between the asset's
+carrying amount and the sum of the consideration
+received and receivable and the cumulative gain
+or loss that had been recognised in OCI and
+accumulated in equity is recognised in profit or
+loss if such gain or loss would have otherwise been
+recognised in profit or loss on disposal of that
+financial asset.
+Impairment of financial assets
+In accordance with Ind AS 109, the Group applies
+expected credit loss (ECL) model for measurement
+and recognition of impairment loss on the trade
+receivables or any contractual right to receive
+cash or another financial asset that result from
+transactions that are within the scope of Ind
+AS 115.
+The Group follows 'simplified approach' for
+recognition of impairment loss allowance on trade
+receivables or any contractual right to receive
+cash or another financial asset. The application
+of simplified approach does not require the
+Group to track changes in credit risk. Rather, it
+recognises impairment loss allowance based on
+lifetime ECLs at each reporting date, right from its
+initial recognition.
+As a practical expedient, the Group uses a
+provision matrix to determine impairment loss
+allowance on portfolio of its trade receivables.
+The provision matrix is based on its historically
+observed default rates over the expected life of
+the trade receivables and is adjusted for forward-
+looking estimates. At every reporting date, the
+historical observed default rates are updated
+and changes in the forward-looking estimates
+are analysed.
+In respect of other financial assets (e.g.: debt
+securities, deposits, bank balances etc), the
+Group generally invests in instruments with high
+credit rating and consequently low credit risk. In
+the unlikely event that the credit risk increases
+significantly from inception of investment, lifetime
+ECL is used for recognising impairment loss on
+such assets.
+For debt instruments at fair value through OCI, the
+Group applies the low credit risk simplification. At
+every reporting date, the Group evaluates whether
+the debt instrument is considered to have low
+credit risk using all reasonable and supportable
+information that is available without undue cost
+or effort. In making that evaluation, the Company
+reassesses the internal credit rating of the
+debt instrument.
+the Group's continuing involvement. In that case,
+the Group also recognises an associated liability.
+The transferred asset and the associated liability
+are measured on a basis that reflects the rights
+and obligations that the Group has retained.
+However, in certain cases, the Group may also
+consider a financial asset to be in default when
+internal or external information indicates that
+the Group is unlikely to receive the outstanding
+contractual amounts in full before taking into
+account any credit enhancements held by the
+Group. A financial asset is written off when there
+is no reasonable expectation of recovering the
+contractual cash flows.
+Debt and equity instruments issued by a Group
+entity are classified as either financial liabilities or
+as equity in accordance with the substance of the
+contractual arrangements and the definitions of a
+financial liability and an equity instrument.
+An equity instrument is any contract that
+evidences a residual interest in the assets of
+an entity after deducting all of its liabilities.
+Equity instruments issued by a Group entity are
+recognised at the proceeds received, net of direct
+issue costs.
+Repurchase of the parent Company's own equity
+instruments is recognised and deducted directly
+in equity. No gain or loss is recognised in the
+statement of profit and loss on the purchase, sale,
+issue or cancellation of the parent Company's own
+equity instruments.
+Compound financial instruments
+The component of compound financial
+instruments (convertible notes) issued by the
+Group are classified separately as financial
+liabilities and equity in accordance with the
+substance of the contractual arrangements
+and the definitions of a financial liability and an
+equity instrument.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+for the year ended March 31, 2024
+Financial liabilities and equity instruments
+Classification as debt or equity
+(b) The contractual terms of the instrument give
+rise on specified dates to cash flows that are
+SPPI on the principal amount outstanding.
+for the year ended March 31, 2024
+Financial Statements
+Consolidated
+Debt instrument at FVTPL
+FVTPL is a residual category for debt instruments.
+Any debt instrument, which does not meet the
+criteria for categorisation as at amortised cost or
+as FVTOCI, is classified as at FVTPL.
+In addition, the Group may elect to designate
+a debt instrument, which otherwise meets
+amortised cost or FVTOCI criteria, as at FVTPL.
+However, such election is allowed only if
+doing so reduces or eliminates a measurement
+or recognition inconsistency (referred to as
+'accounting mismatch').
+Debt instruments included within the FVTPL
+category are measured at fair value with all the
+changes recognised in the statement of profit
+and loss.
+Equity instruments
+All equity instruments in scope of Ind AS 109 are
+measured at fair value. Equity instruments which
+are held for trading are classified as at FVTPL. For
+all other equity instruments, the Group may make
+an irrevocable election to present subsequent
+changes in the fair value in OCI. The Group makes
+such election on an instrument-by-instrument
+basis. The classification is made on initial
+recognition and is irrevocable.
+If the Group decides to classify an equity
+instrument as at FVTOCI, then all fair value
+changes on the instrument, including foreign
+exchange gain or loss and excluding dividends, are
+recognised in the OCI. There is no recycling of the
+amounts from OCI to profit or loss, even on sale of
+investment. However, the Group may transfer the
+cumulative gain or loss within equity.
+Notes to the Consolidated Financial Statements
+Equity instruments included within the FVTPL
+category are measured at fair value with all
+changes recognised in the statement of profit
+and loss.
+A financial asset (or, where applicable, a part of a
+financial asset or part of a group of similar financial
+assets) is primarily derecognised (i.e. removed from
+the Group's consolidated balance sheet) when:
+• The contractual rights to receive cash flows
+from the asset have expired, or
+• The Group has transferred its rights to receive
+contractual cash flows from the asset or has
+assumed an obligation to pay the received cash
+flows in full without material delay to a third
+party under a 'pass-through' arrangement;
+and either (a) the Group has transferred
+substantially all the risks and rewards of the
+asset, or (b) the Group has neither transferred
+nor retained substantially all the risks and
+rewards of the asset, but has transferred
+control of the asset.
+When the Group has transferred its rights to
+receive cash flows from an asset or has entered
+into a pass-through arrangement, it evaluates
+if and to what extent it has retained the risks
+and rewards of ownership. When it has neither
+transferred nor retained substantially all of the
+risks and rewards of the asset, nor transferred
+control of the asset, the Group continues to
+recognise the transferred asset to the extent of
+Patient First. Always.
+228
+Corporate Overview Statutory Reports
+De-recognition
+Notes to the Consolidated Financial Statements
+h.
+Corporate Overview Statutory Reports
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+The consolidated financial statements comprise
+the financial statements of the parent Company
+and its subsidiaries as disclosed in Note 38.
+Control exists when the parent has power over
+the entity, is exposed, or has rights, to variable
+returns from its involvement with the entity and
+has the ability to affect those returns by using
+its power over the entity. Power is demonstrated
+through existing rights that give the ability to
+direct relevant activities, those which significantly
+affect the entity's returns. Subsidiaries are
+consolidated from the date control commences
+until the date control ceases.
+a. Basis of consolidation
+The Group has consistently applied the following
+accounting policies to all periods presented in these
+consolidated financial statements.
+• Level 3 inputs are unobservable inputs for the asset
+or liability.
+• Level 2 inputs are inputs, other than quoted prices
+included within Level 1, that are observable for the
+asset or liability, either directly or indirectly; and
+• Level 1 inputs are quoted prices (unadjusted) in
+active markets for identical assets or liabilities that
+the entity can access at the measurement date;
+In addition, for financial reporting purposes, fair
+value measurements are categorised into Level 1,
+2, or 3 based on the degree to which the inputs to
+the fair value measurements are observable and the
+significance of the inputs to the fair value measurement
+in its entirety, which are described as follows:
+Fair value is the price that would be received to sell
+an asset or paid to transfer a liability in an orderly
+transaction between market participants at the
+measurement date, regardless of whether that price
+is directly observable or estimated using another
+valuation technique. In estimating the fair value of
+an asset or a liability, the Group takes into account
+the characteristics of the asset or liability if market
+participants would take those characteristics into
+account when pricing the asset or liability at the
+measurement date. Fair value for measurement and/
+or disclosure purposes in these consolidated financial
+statements is determined on such a basis, except for
+share-based payment transactions that are within
+the scope of Ind AS 102, leasing transactions that are
+within the scope of Ind AS 116, and measurements
+that have some similarities to fair value but are not fair
+value, such as net realisable value in Ind AS 2 or value in
+use in Ind AS 36.
+Historical cost is generally based on the fair value of the
+consideration given in exchange for goods and services.
+The consolidated financial statements are presented
+in Indian Rupees (*) and all values are rounded to the
+nearest Million (000,000) upto one decimal, except
+when otherwise indicated.
+The consolidated financial statements have been
+prepared on the historical cost convention and on an
+accrual basis, except for: (i) certain financial instruments
+that are measured at fair values at the end of each
+reporting period; (ii) Non-current assets classified
+as held for sale which are measured at the lower of
+their carrying amount and fair value less costs to sell;
+(iii) investment in joint ventures and associates are
+accounted for using the equity method (iv) derivative
+financial instruments and (v) defined benefit plans -
+plan assets that are measured at fair values at the end
+of each reporting period, as explained in the accounting
+policies below:
+2.2 Basis of preparation and presentation
+The Group has prepared its consolidated financial
+statements for the year ended March 31, 2024 in
+accordance with Indian Accounting Standards (Ind
+AS) notified under the Companies (Indian Accounting
+Standards) Rules, 2015 (as amended) together with the
+comparative period data as at and for the year ended
+March 31, 2023 and presentation requirements of
+Division II of Schedule III to the Companies Act, 2013,
+(Ind AS compliant Schedule III), as applicable to the
+consolidated financial statements.
+2.1 Statement of compliance
+Material accounting policies
+The consolidated financial statements were authorised
+for issue in accordance with a resolution of the
+directors on May 22, 2024.
+221
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+Profit or loss and each component of other
+comprehensive income are attributed to the
+owners of the Company and to the non-controlling
+interests. Total comprehensive income of
+Current vs. Non-current
+When a Group entity transacts with an associate
+or a joint venture of the Group, profits and losses
+resulting from the transactions with the associate
+or joint venture are recognised in the Group's
+consolidated financial statements only to the
+extent of interest in the associate or joint venture
+that are not related to the Group.
+C.
+b.
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+222
+Sun Pharmaceutical Industries Limited (SPIL or the
+"parent company") (CIN L24230GJ1993PLC019050), is
+a public limited company incorporated and domiciled
+in India, having its registered office at SPARC, Tandalja,
+Vadodara, Gujarat 390012, India. SPIL is listed on the
+BSE Limited and National Stock Exchange of India
+Limited. The parent company is incorporated under
+the provisions of Companies Act, as applicable in India.
+The parent company and its subsidiaries (hereinafter
+referred to as the "Company" or the "Group") are
+engaged in the business of manufacturing, developing
+and marketing a wide range of branded and generic
+formulation and Active Pharmaceutical ingredients
+(APIs). The Group has various manufacturing locations
+spread across the world with trading and other
+incidental and related activities extending to the
+global market.
+Patient First. Always.
+An investment in an associate or a joint venture is
+accounted for using the equity method from the
+date on which the investee becomes an associate
+or a joint venture and discontinues from the date
+when the investment ceases to be an associate
+or a joint venture, or when the investment is
+classified as held for sale.
+The results and assets and liabilities of associates
+or joint ventures are incorporated in these
+consolidated financial statements using the
+equity method of accounting, except when the
+investment, or a portion thereof, is classified as
+held for sale, in which case it is accounted for in
+accordance with Ind AS 105. Under the equity
+method, an investment in an associate or a joint
+venture is initially recognised in the consolidated
+balance sheet at cost and adjusted thereafter to
+recognise the Group's share of the profit or loss
+and other comprehensive income of the associate
+or joint venture. Distributions received from an
+associate or a joint venture reduce the carrying
+amount of the investment. The carrying value
+of the Group's investment includes goodwill
+identified on acquisition, net of any accumulated
+impairment losses. When the Group's share of
+losses of an associate or a joint venture exceeds
+its interest in that associate or joint venture, the
+carrying amount of that interest (including any
+long-term investments) is reduced to zero and
+the recognition of further losses is discontinued
+except to the extent that the Group has
+obligations or has made payments on behalf of the
+associate or joint venture.
+A joint venture is a joint arrangement whereby the
+parties that have joint control of the arrangement
+have rights to the net assets of the joint
+arrangement. Joint control is the contractually
+agreed sharing of control of an arrangement,
+which exists only when decisions about the
+relevant activities require unanimous consent of
+the parties sharing control.
+Investment in Associates and Joint Ventures
+Associates are those entities over which the Group
+has significant influence. Significant influence
+is the power to participate in the financial and
+operating policy decisions of the entities but is
+not control or joint control of those policies.
+When the Group loses control of a subsidiary, a gain
+or loss is recognised in the statement of profit and
+loss and is calculated as the difference between (i)
+the aggregate of the fair value of the consideration
+received and the fair value of any retained interest
+and (ii) the previous carrying amount of the assets
+(including goodwill) and liabilities of the subsidiary
+and any non-controlling interests. All amounts
+previously recognised in other comprehensive
+income in relation to that subsidiary are accounted
+for as if the Group had directly disposed off the
+related assets or liabilities of the subsidiary (i.e.
+reclassified to the statement of profit and loss
+or transferred to another category of equity as
+specified/ permitted by applicable Ind AS).
+Changes in the Group's ownership interests in
+subsidiaries that do not result in the Group losing
+control over the subsidiaries are accounted for
+as equity transactions. The carrying amounts of
+the Group's interests and the non-controlling
+interests are adjusted to reflect the changes in
+their relative interests in the subsidiaries. Any
+difference between the amount by which the non-
+controlling interests are adjusted and the fair value
+of the consideration paid or received is recognised
+directly in retained earnings and attributed to
+owners of the Company.
+Changes in the Group's ownership interests in
+existing subsidiaries
+The financial statements of the Group companies
+are consolidated on a line-by-line basis and intra-
+Group balances, transactions including unrealised
+gain/loss from such transactions and cash flows
+relating to transactions between members of the
+Group are eliminated upon consolidation. The
+carrying amount of the parent's investment in each
+subsidiary and the parent's portion of equity of
+each subsidiary are also eliminated. These financial
+statements are prepared by applying uniform
+accounting policies in use at the Group.
+subsidiaries is attributed to the owners of the
+Company and to the non-controlling interests
+even if this results in the non-controlling interests
+having a deficit balance.
+The difference between the carrying amount
+of the associate or joint venture at the date the
+equity method was discontinued, and the fair
+value of any retained interest and any proceeds
+from disposing of a part interest in the associate
+or joint venture is included in the determination
+of the gain or loss on disposal of the associate
+or joint venture. In addition, the Group accounts
+for all amounts previously recognised in other
+comprehensive income in relation to that associate
+or joint venture on the same basis as would
+be required if that associate or joint venture
+had directly disposed off the related assets
+or liabilities.
+Based on the time between the acquisition
+of assets for processing and their realisation
+in cash and cash equivalents, the Group has
+identified twelve months as its operating cycle for
+determining current and non-current classification
+of assets and liabilities in the balance sheet.
+General information
+1.
+219
+Mumbai, May 22, 2024
+Membership Number: 105754
+Partner
+per PAUL ALVARES
+ICAI Firm Registration No.: 324982E/E300003
+Chartered Accountants
+For S RBC & CO LLP
+As per our report of even date
+The accompanying notes are an integral part of the consolidated financial statements.
+For movement of lease liabilities, Refer Note 54.
+The effect of changes in foreign exchange rates
+Closing balance
+Changes from financing cash flows
+Opening balance
+Particulars
+for the year ended March 31, 2024
+Consolidated Statement of Cash Flow
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+in Million
+Year ended March 31, 2023
+Derivatives, net
+[(liabilities)/asset]
+Borrowings
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+220
+Patient First. Always.
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 22, 2024
+Company Secretary and Compliance Officer
+ANOOP DESHPANDE
+2.
+Whole-time Director
+(DIN: 01951829)
+(DIN: 00005588)
+Chairman and Managing Director
+DILIP S. SHANGHVI
+For and on behalf of the Board of Directors of
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+66.1
+(236.6)
+1,375.3
+61,978.8
+51,296.6
+(302.7)
+9,306.9
+AALOK D. SHANGHVI
+Financial Statements
+Consolidated
+Business combinations
+The Group uses the acquisition method of
+accounting to account for business combinations
+that occurred on or after April 01, 2015. The
+acquisition date is generally the date on which
+control is transferred to the acquirer. Judgement
+is applied in determining the acquisition date
+and determining whether control is transferred
+from one party to another. Control exists when
+the Group is exposed to, or has rights to, variable
+returns from its involvement with the entity and
+has the ability to affect those returns through
+power over the entity. In assessing control,
+potential voting rights are considered only if
+the rights are substantive. The Group measures
+goodwill as of the applicable acquisition date at
+the fair value of the consideration transferred,
+including the recognised amount of any non-
+controlling interest in the acquiree and the fair
+value of the acquirer's previously held equity
+interest in the acquiree (if any), less the net
+recognised amount of the identifiable assets
+acquired and liabilities assumed. When the fair
+value of the net identifiable assets acquired and
+liabilities assumed exceeds the consideration
+transferred, a bargain purchase gain is recognised
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+⚫ the Group intends to and has sufficient
+resources/ability to complete development and
+to use or sell the asset.
+⚫ future economic benefits are probable; and
+⚫ the product or process is technically and
+commercially feasible;
+⚫ development costs can be measured reliably;
+Expenditure on research activities undertaken
+with the prospect of gaining new scientific
+or technical knowledge and understanding
+are recognised as an expense when incurred.
+Development activities involve a plan or design for
+the production of new or substantially improved
+products and processes. An internally-generated
+intangible asset arising from development is
+recognised if and only if all of the following have
+been demonstrated:
+Research and development
+Other Intangible assets that are acquired by
+the Group and that have finite useful lives are
+measured at cost less accumulated amortisation
+and accumulated impairment losses, if any.
+Subsequent expenditures are capitalised only
+when they increase the future economic benefits
+embodied in the specific asset to which they relate.
+Other Intangible assets
+On disposal of a cash-generating unit to which
+goodwill is allocated, the goodwill associated with
+the disposed cash-generating unit is included in
+the carrying amount of the cash-generating unit
+when determining the gain or loss on disposal.
+Goodwill represents the excess of consideration
+transferred, together with the amount of non-
+controlling interest in the acquiree, over the fair
+value of the Group's share of identifiable net
+assets acquired. Goodwill is measured at cost less
+accumulated impairment losses. A cash-generating
+unit to which goodwill has been allocated is tested
+for impairment annually, or more frequently
+when there is an indication that the unit may be
+impaired. The goodwill acquired in a business
+combination is, for the purpose of impairment
+testing, allocated to cash-generating units that
+are expected to benefit from the synergies of the
+combination. Any impairment loss for goodwill is
+recognised directly in the statement of profit and
+loss. An impairment loss recognised for goodwill is
+not reversed in subsequent periods.
+Goodwill and Other Intangible assets
+Goodwill
+g.
+* Includes assets given under operating lease
+Software for internal use, which is primarily
+acquired from third-party vendors and which
+is an integral part of a tangible asset, including
+consultancy charges for implementing the
+software, is capitalised as part of the related
+tangible asset. Subsequent costs associated with
+maintaining such software are recognised as
+expense as incurred. The capitalised costs are
+amortised over the lower of the estimated useful
+life of the software and the remaining useful life of
+the tangible fixed asset.
+Vehicles
+3-15
+Furniture and fixtures
+2-17
+Statutory Reports
+Financial Statements
+Consolidated
+225
+Notes to the Consolidated Financial Statements
+226
+Patient First. Always.
+In respect of assets other than goodwill,
+impairment losses recognised in prior periods are
+assessed at each reporting date for any indications
+that the loss has decreased or no longer exists.
+An impairment loss is reversed if there has been
+a change in the estimates used to determine
+the recoverable amount. An impairment loss
+An impairment loss is recognised in the statement
+of profit and loss if the estimated recoverable
+amount of an asset or its cash generating unit is
+lower than its carrying amount. Impairment losses
+recognised in respect of cash-generating units
+are allocated first to reduce the carrying amount
+of any goodwill allocated to the units and then to
+reduce the carrying amount of the other assets in
+the unit on a pro-rata basis.
+The recoverable amount of an asset or cash-
+generating unit (as defined below) is the higher of
+its value in use and its fair value less costs to sell.
+In assessing value in use, the estimated future cash
+flows are discounted to their present value using a
+pre-tax discount rate that reflects current market
+assessments of the time value of money and the
+risks specific to the asset or the cash-generating
+unit for which the estimates of future cash flows
+have not been adjusted. For the purpose of
+impairment testing, assets are grouped together
+into the smallest Group of assets that generates
+cash inflows from continuing use that are largely
+independent of the cash inflows of other assets or
+groups of assets (the "cash-generating unit”).
+The carrying amounts of the Group's non-financial
+assets are reviewed at each reporting date to
+determine whether there is any indication of
+impairment. If any such indication exists, then the
+asset's recoverable amount is estimated in order to
+determine the extent of the impairment loss, if any.
+Impairment of non-financial assets other than
+goodwill
+if
+Intangible assets are de-recognised either on their
+disposal or where no future economic benefits
+are expected from their use. Gain or loss arising
+on such de-recognition is recognised in the
+statement of profit and loss, and are measured as
+the difference between the net disposal proceeds,
+any, , and the carrying amount of respective
+intangible assets as on the date of de-recognition.
+Office equipment
+De-recognition of intangible assets
+The estimated useful lives for Product related
+intangibles and Other intangibles range from 3 to
+15 years.
+Amortisation is recognised on a straight-line basis
+over the estimated useful lives of intangible assets.
+Intangible assets that are not available for use are
+amortised from the date they are available for use.
+Subsequent expenditures are capitalised
+only when they increase the future economic
+benefits embodied in the specific asset to which
+they relate. All other expenditures, including
+expenditures on internally generated goodwill and
+brands, are recognised in the statement of profit
+and loss as incurred.
+The consideration for acquisition of intangible
+asset which is based on reaching specific milestone
+that are dependent on the Group's future activity
+is recognised only when the activity requiring the
+payment is performed.
+Acquired research and development intangible
+assets which are under development, are
+recognised as In-Process Research and
+Development assets ("IPR&D"). IPR&D assets
+are not amortised, but evaluated for potential
+impairment on an annual basis or when there
+are indications that the carrying value may not
+be recoverable. Any impairment charge on such
+IPR&D assets is recognised in the statement
+of profit and loss. Intangible assets relating to
+products under development, other intangible
+assets not available for use and intangible
+assets having indefinite useful life are tested for
+impairment annually, or more frequently when
+there is an indication that the assets may be
+impaired. All other intangible assets are tested for
+impairment when there are indications that the
+carrying value may not be recoverable.
+Payments to third parties that generally take the
+form of up-front payments and milestones for
+in-licensed products, compounds and intellectual
+property are capitalised since the probability of
+expected future economic benefits criterion is
+always considered to be satisfied for separately
+acquired intangible assets.
+The expenditure to be capitalised include the cost
+of materials and other costs directly attributable to
+preparing the asset for its intended use.
+Development expenditure is capitalised when the
+criteria for recognising an asset are met, usually
+when a regulatory filing has been made in a major
+market and approval is considered highly probable.
+for the year ended March 31, 2024
+The estimated useful life and amortisation method
+are reviewed at the end of each reporting period,
+with the effect of any changes in estimate being
+accounted for on a prospective basis.
+The Group determines that it has acquired a
+business when the acquired set of activities and
+assets include an input and a substantive process
+that together significantly contribute to the
+ability to create outputs. The acquired process is
+considered substantive if it is critical to the ability
+to continue producing outputs, and the inputs
+acquired include an organised workforce with
+the necessary skills, knowledge, or experience to
+perform that process or it significantly contributes
+to the ability to continue producing outputs and is
+considered unique or scarce or cannot be replaced
+without significant cost, effort, or delay in the
+ability to continue producing outputs.
+3-15
+Plant and equipment
+Non-monetary items that are measured in
+terms of historical cost in foreign currency
+are measured using the exchange rates at the
+date of initial transaction.
+• exchange differences relating to the
+translation of the results and the net assets
+of the Company's foreign operations from
+their functional currencies to the Company's
+presentation currency (i.e. *) are recognised
+directly in the other comprehensive income
+and accumulated in foreign currency translation
+reserve. Exchange difference in the foreign
+currency translation reserve are reclassified
+to profit or loss account on the disposal of the
+foreign operation.
+• exchange differences on transactions entered
+into in order to hedge certain foreign currency
+risks (see note 2.2.j below for hedging
+accounting policies).
+• exchange differences on foreign currency
+borrowings relating to assets under
+construction for future productive use, which
+are included in the cost of those assets when
+they are regarded as an adjustment to interest
+costs on those foreign currency borrowings.
+In preparing the financial statements of each
+individual Group entity, transactions in currencies
+other than the entity's functional currency (foreign
+currencies) are translated at exchange rates on
+the date of the transactions. Monetary assets and
+liabilities denominated in foreign currencies at the
+reporting date are translated into the functional
+currency at the exchange rate on that date.
+Exchange differences arising on the settlement of
+monetary items or on translating monetary items
+at rates different from those at which they were
+translated on initial recognition during the period
+or in previous period are recognised in profit or
+loss in the period in which they arise except for:
+Foreign currency transactions
+Foreign currency
+If the initial accounting for a business combination
+is incomplete by the end of the reporting period in
+which the combination occurs, the Group reports
+provisional amounts for the items for which
+the accounting is incomplete. Those provisional
+amounts are adjusted during the measurement
+period (see above), or additional assets or liabilities
+are recognised, to reflect new information obtained
+about facts and circumstances that existed at the
+acquisition date that, if known, would have affected
+the amounts recognised at that date.
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+223
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+If the business combination is achieved in stages,
+any previously held equity interest is re-measured
+at its acquisition date fair value and any resulting
+gain or loss is recognised in the statement of profit
+and loss, as appropriate.
+A contingent liability of the acquiree is assumed
+in a business combination only if such a liability
+represents a present obligation and arises from
+a past event and its fair value can be measured
+reliably. On an acquisition-by-acquisition basis, the
+Group recognises any non-controlling interest in
+the acquiree either at fair value or at the non-
+controlling interest's proportionate share of the
+acquiree's identifiable net assets. Transaction
+costs that the Group incurs in connection with a
+business combination, such as finder's fees, legal
+fees, due diligence fees and other professional and
+consulting fees, are expensed as incurred.
+Acquisition-related costs are expensed in the
+periods in which the costs are incurred and the
+services are received, with the exception of the
+costs of issuing debt or equity securities that are
+recognised in accordance with Ind AS 32 and Ind
+AS 109.
+immediately in the OCI and accumulated in
+equity as Capital reserve where there exists clear
+evidence of the underlying reasons for classifying
+the business combination as a bargain purchase
+else the gain is directly recognised in equity as
+Capital reserve. Consideration transferred includes
+the fair values of the assets transferred, liabilities
+incurred by the Group to the previous owners of
+the acquiree, and equity interests issued by the
+Group. Consideration transferred also includes
+the fair value of any contingent consideration.
+Changes in the fair value of the contingent
+consideration that qualify as measurement period
+adjustments are adjusted retrospectively, with
+corresponding adjustments against goodwill or
+capital reserve, as the case maybe. The subsequent
+accounting for changes in the fair value of the
+contingent consideration that do not qualify as
+measurement period adjustments depends on
+how the contingent consideration is classified.
+Contingent consideration that is classified as
+equity is not remeasured at subsequent reporting
+dates and its subsequent settlement is accounted
+for within equity. Contingent consideration that
+is classified as an asset or a liability is remeasured
+at fair value at subsequent reporting dates with
+the corresponding gain or loss being recognised
+in the statement of profit and loss. Consideration
+transferred does not include amounts related to
+settlement of pre-existing relationships.
+e.
+f.
+Foreign operations
+For the purposes of presenting these consolidated
+financial statements, the assets and liabilities of
+Group's foreign operations, are translated to the
+Indian Rupees at exchange rates at the end of
+each reporting period. The income and expenses
+of such foreign operations are translated at the
+average exchange rates for the period. Resulting
+foreign currency differences are recognised in
+other comprehensive income and presented within
+equity as part of Foreign Currency Translation
+Reserve (and attributed to non-controlling
+interests as appropriate). When a foreign
+operation is disposed off, the relevant amount
+in the Foreign Currency Translation Reserve is
+reclassified to profit or loss.
+4-125
+Buildings including factory buildings*
+No. of years
+Asset Category
+The estimated useful lives are as follows:
+Depreciation is recognised on the cost of assets
+(other than freehold land and Capital work-in-
+progress) less their residual values on straight-
+line method over their useful lives. Leasehold
+improvements are depreciated over period of the
+lease agreement or the useful life, whichever is
+shorter. Depreciation methods, useful lives and
+residual values are reviewed at the end of each
+reporting period, with the effect of any changes in
+estimate accounted for on a prospective basis.
+Assets in the course of construction for
+production, supply or administrative purposes are
+carried at cost, less any recognised impairment
+loss. Cost includes purchase price, borrowing
+costs if capitalisation criteria are met and
+directly attributable cost of bringing the asset
+to its working condition for the intended use.
+Subsequent expenditures are capitalised only
+when they increase the future economic benefits
+embodied in the specific asset to which they
+relate. Such assets are classified to the appropriate
+categories of property, plant and equipment
+when completed and ready for intended use.
+Depreciation of these assets, on the same basis
+as other assets, commences when the assets
+are ready for their intended use. When parts of
+an item of property, plant and equipment have
+different useful lives, they are accounted for as
+separate items (major components) of property,
+plant and equipment.
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+2-30
+Financial Statements
+Consolidated
+224
+Patient First. Always.
+less accumulated depreciation and accumulated
+impairment losses, if any. Freehold land is
+not depreciated.
+Items of property, plant and equipment are
+stated in consolidated balance sheet at cost
+Property, plant and equipment
+Operating segments are reported in a manner
+consistent with the internal reporting provided
+to the chief operating decision maker. The chief
+operating decision maker of the Company is
+responsible for allocating resources and assessing
+performance of the operating segments.
+Segment reporting
+Goodwill and fair value adjustments to identifiable
+assets acquired and liabilities assumed through
+acquisition of a foreign operation are treated
+as assets and liabilities of the foreign operation
+and translated at the rate of exchange prevailing
+at the end of each reporting period. Exchange
+differences arising are recognised in other
+comprehensive income.
+In addition, in relation to a partial disposal of
+a subsidiary that includes a foreign operation
+that does not result in the Group losing control
+over the subsidiary, the proportionate share
+of accumulated exchange differences are re-
+attributed to non-controlling interests and are
+not recognised in the statement of profit and loss.
+For all other partial disposals (i.e. partial disposals
+of associates or joint arrangements that do not
+result in the Group losing significant influence
+or joint control), the proportionate share of the
+accumulated exchange differences is reclassified
+to profit or loss.
+Corporate Overview Statutory Reports
+d.
+Employee benefits
+(4.8)
+Foreign currency translation difference
+Taken over on acquisition
+(368.6)
+0.1
+(108.9)
+10.8
+(54.8)
+Depreciation expense
+2,407.2
+0.8
+9,230.8
+0.4
+3.7
+225.8
+167.2
+Disposals
+Reclassified to Assets held for Sale
+As at March 31, 2024
+(106.7)
+(38.2)
+25,962.3
+(1,177.9)
+(33.9)
+(166.6)
+(437.4)
+(9.6)
+(5.0)
+88,570.6
+3,613.1
+111,562.1
+2,308.0
+702.8
+3,419.6
+141.5
+356.9
+Depreciation expense
+2,047.1
+8,663.0
+222.7
+125.7
+372.9
+11,431.4
+Disposals
+(79.0)
+(984.6)
+647.3
+(36.4)
+(22.7)
+(1,309.4)
+Reclassified to Assets held for Sale
+(40.5)
+(227.7)
+(4.0)
+(1.5)
+(1.0)
+(274.7)
+As at March 31, 2023
+24,068.5
+81,063.2
+(186.7)
+215.4
+(9.5)
+0.3
+377.0
+(192.6)
+(0.2)
+2,483.0
+5.3
+Total
+At cost
+As at March 31, 2022
+2,173.1
+2,642.0
+Foreign currency translation difference
+137.1
+Taken over on acquisition
+126.8
+1,382.1
+3.0
+(0.2)
+2,932.5
+216.7
+24.1
+(0.2)
+7,774.7
+480.2
+1,382.1
+Additions
+5.8
+3,193.3
+515.7
+3,714.8
+Deletions
+Plant and equipment
+(542.7)
+(381.7)
+Office
+equipment
+Vehicles
+Furniture
+and fixtures
+land
+12,408.0
+(1,677.7)
+(490.4)
+121,276.3
+Carrying amount
+As at March 31, 2023
+As at March 31, 2024
+6,676.1
+37,326.9 49,710.3
+8,173.2 37,647.6 48,487.2
+1,019.0
+483.7
+920.6
+(531.0)
+594.6
+96,154.3
+96,772.2
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+NOTE: 3A(II) RIGHT-OF-USE ASSETS
+237
+in Million
+Leasehold
+Buildings
+938.3
+949.0
+Taken over on acquisition
+3,915.5
+27.7
+1,148.0
+15.5
+3,022.3
+41.8
+196,314.7
+6,192.5
+Additions
+104.9
+797.6
+194.1
+5,005.0
+690.5
+90.2
+230.2
+208.1
+6.436.0
+Disposals
+Reclassified to Assets held for Sale
+(83.2) (1,083.7)
+(139.4) (328.4)
+(45.1)
+(204.5)
+(24.5)
+(1,441.0)
+(4.4)
+(2.7)
+(1.4)
+(476.3)
+As at March 31, 2023
+4,231.3
+166.6
+3,357.6
+2,487.9
+496.4
+Taken over on acquisition
+Exceptional items
+Exceptional items refer to items of income or
+expense, including tax items, within the statement
+of profit and loss from ordinary activities which
+are non-recurring and are of such size, nature
+or incidence that their separate disclosure is
+considered necessary to explain the performance
+of the Company.
+Recent Accounting pronouncements
+Ministry of Corporate Affairs ("MCA") notifies
+new standards or amendments to the existing
+standards under Companies (Indian Accounting
+Standards) Rules as issued from time to time.
+During the year ended March 31, 2024, MCA has
+not notified any new standards or amendments to
+the existing standards applicable to the Company.
+Patient First. Always.
+236
+Corporate Overview Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+NOTE: 3A(1) PROPERTY, PLANT AND EQUIPMENT
+Freehold
+land
+6,676.1
+Buildings
+including
+given on
+lease
+Furniture
+and fixtures
+Vehicles
+Office
+equipment
+in Million
+Total
+At cost or deemed cost
+As at March 31, 2022
+6,448.1
+57,836.1
+123,628.9
+Foreign currency translation difference
+123.1
+Plant and
+equipment
+61,395.4
+130,773.5
+4,438.6
+(1.3)
+As at March 31, 2024
+8,173.2
+(88.7)
+63,609.9
+(582.7)
+(12.7)
+(5.2)
+(0.2)
+(690.8)
+137,057.8
+4,533.7
+1,241.9
+Reclassified to Assets held for Sale
+3,432.0
+Accumulated depreciation and impairment
+As at March 31, 2022
+Foreign currency translation difference
+20,797.8
+1,127.7
+70,858.0
+3,105.5
+750.0
+1,931.1
+97,442.4
+2,613.0
+131.8
+15.3
+218,048.5
+(929.2)
+(2,236.4)
+(192.9)
+1,186.5
+3,246.3 207,716.4
+Foreign currency translation difference
+(99.5)
+Taken over on acquisition
+(531.2)
+2.3
+(187.2)
+12.8
+(93.3)
+9.1
+1.2
+11.9
+(449.5)
+(15.0)
+0.6
+Additions
+1,597.9
+2,997.1
+8,437.7
+130.2
+334.9
+649.8
+25.1
+14,147.6
+Disposals
+(165.0)
+(1,392.6)
+(36.4)
+(913.4)
+Reclassified to Assets held for Sale
+(8.9)
+(8.9)
+5,151.0
+3.7
+7,749.5
+8.8
+1,364.2
+1,488.1
+0.4
+1,925.3
+1,733.5
+As at March 31, 2024
+1.1
+4,585.4
+1,790.0
+As at March 31, 2023
+Carrying amount
+1,347.7
+(1,554.3)
+(0.5)
+4,484.1
+17.7
+1,413.4
+2.1
+2,491.4
+559.5
+As at March 31, 2024
+(0.5)
+Reclassified to Assets held for Sale
+4.4
+720.8
+(1,232.2)
+(i) For details of Ind AS 116 disclosure refer Note 54.
+Patient First. Always.
+238
+Corporate Overview Statutory Reports
+Reclassified to Assets held for Sale
+Disposals
+8,084.2
+7,352.4
+731.8
+Additions
+39.9
+39.9
+2,118.0
+2,046.5
+117,071.4
+112,550.3
+(322.1)
+4,521.1
+71.5
+Foreign currency translation difference
+As at March 31, 2022
+At cost or deemed cost
+Total
+Product related
+intangibles
+Computer
+Software
+* in Million
+Other than internally generated
+NOTE: 3B OTHER INTANGIBLE ASSETS
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Taken over on acquisition
+Deletions
+576.4
+46.1
+664.8
+5.4
+1,315.2
+Deletions
+(341.0)
+(184.8)
+(525.8)
+Reclassified to Assets held for Sale
+(0.6)
+(0.6)
+As at March 31, 2023
+512.3
+0.6
+2,216.1
+1,919.0
+15.1
+4,664.2
+Foreign currency translation difference
+1.6
+18.7
+0.4
+5.8
+(1.8)
+24.7
+Taken over on acquisition
+2.3
+1.7
+As at March 31, 2023
+595.0
+Depreciation expense
+(2.7)
+(2.7)
+As at March 31, 2024
+2,293.0
+4,416.7
+2.5
+2,901.5
+21.4
+9,635.1
+Accumulated depreciation
+As at March 31, 2022
+440.9
+49.4
+1,157.4
+1,324.2
+9.6
+2,933.2
+Foreign currency translation difference
+22.6
+75.1
+114.8
+0.1
+212.6
+Taken over on acquisition
+729.6
+729.6
+1.1
+Accruals for uncertain tax positions require
+management to make judgements of potential
+exposures. Accruals for uncertain tax positions are
+measured using either the most likely amount or
+the expected value amount depending on which
+method the entity expects to better predict the
+resolution of the uncertainty. Tax benefits are
+not recognised unless the management based
+upon its interpretation of applicable laws and
+regulations and the expectation of how the tax
+authority will resolve the matter concludes that
+such benefits will be accepted by the authorities.
+Once considered probable of not being accepted,
+management reviews each material tax benefit
+and reflects the effect of the uncertainty in
+determining the related taxable amounts.
+(1.2)
+(16.5)
+(a) Buildings include 8,620 (March 31, 2023: 8,620) towards cost of shares in a co-operative housing society and also includes 4.5 Million
+(March 31, 2023: 4.5 Million) towards cost of flats not registered in the name of the parent company but is entitled to right of use and occupancy.
+(b) Product related intangibles consisting of trademarks, brands acquired, research and development, designs, technical know-how, licences,
+non-compete fees and other intangible assets are available to the Group in perpetuity. The amortisable amount of intangible assets is arrived at,
+based on the management's best estimates of useful lives of such assets after due consideration as regards their expected usage, the product life
+cycles, technical and technological obsolescence, market demand for products, competition and their expected future benefits to the Group.
+(c) 1.5 Million (March 31, 2023: 10.0 Million) related to impairment of Property, Plant and Equipment and Other Intangible Assets has been
+included above under depreciation and amortisation expense.
+Footnotes to 3A and 3B:
+As at March 31, 2024
+44,201.1
+53,170.3
+50,975.1
+41,976.5
+2,195.2
+2,224.6
+As at March 31, 2023
+Carrying amount
+84,962.9
+81,618.5
+3,344.4
+As at March 31, 2024
+(3.4)
+(3.4)
+Reclassified to Assets held for Sale
+(1,181.4)
+(712.3)
+(469.1)
+Disposals
+11,812.2
+11,150.5
+661.7
+Amortisation expense
+216.6
+0.1
+(d) The aggregate amortisation has been included under depreciation and amortisation expense in the consolidated statement of profit and loss.
+NOTE: 3C ASSETS CLASSIFIED AS HELD FOR SALE
+Freehold land
+Buildings
+As at March 31, 2023
+2,302.3
+6,801.5
+2.8
+3,283.2
+Foreign currency translation difference
+(6.6)
+(1.4)
+(0.3)
+3.3
+23.9
+(2.5)
+12,413.7
+0.1
+(7.5)
+9.0
+9.0
+Additions
+304.6
+Deletions
+(2,697.0)
+864.0
+(1,249.0)
+1,168.6
+(3,946.0)
+Office equipment
+Leasehold land
+Furniture and fixtures
+Computer Software
+Taken over on acquisition
+Taken over on acquisition
+221.5
+(4.9)
+Reclassified to Assets held for Sale
+As at March 31, 2024
+(5.5)
+(5.5)
+Reclassified to Assets held for Sale
+(1,309.1)
+(839.0)
+(470.1)
+Disposals
+2,533.6
+1,832.9
+700.7
+5,569.0
+Additions
+357.7
+0.1
+Taken over on acquisition
+298.1
+309.5
+(11.4)
+Foreign currency translation difference
+127,289.1
+121,933.9
+5,355.2
+(7.9)
+(7.9)
+357.8
+(15.3)
+123,595.0
+Accumulated amortisation and impairment
+Foreign currency translation difference
+(3.8)
+74,118.8
+70,958.8
+3,160.0
+As at March 31, 2023
+(3.8)
+Reclassified to Asset held for sale
+(24.1)
+(23.6)
+(0.5)
+Disposals
+12,557.7
+129,164.0
+12,024.3
+Amortisation expense
+18.8
+18.8
+Taken over on acquisition
+1,523.8
+1,463.1
+60.7
+Foreign currency translation difference
+60,046.4
+57,495.0
+2,551.4
+As at March 31, 2022
+533.4
+2.3
+Minimum Alternate Tax ('MAT') credit is recognised
+as deferred tax asset only when and to the extent
+there is convincing evidence that the Company
+will pay normal income tax during the period for
+which the MAT credit can be carried forward for
+set-off against the normal tax liability. MAT credit
+recognised as an asset is reviewed at each Balance
+Sheet date and written down to the extent the
+aforesaid convincing evidence no longer exists.
+t.
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+If the hedging instrument expires or is
+sold, terminated or exercised or if its
+designation as a hedge is revoked, or when
+the hedge no longer meets the criteria for
+hedge accounting, any cumulative gain or
+loss previously recognised in OCI remains
+separately in equity until the forecast
+transaction occurs or the foreign currency
+firm commitment is met. When a forecast
+transaction is no longer expected to occur,
+the gain or loss accumulated in equity is
+recognised immediately in profit or loss.
+The effective portion of changes in the fair
+value of the hedging instrument is recognised
+in OCI in the cash flow hedge reserve,
+while any ineffective portion is recognised
+immediately in profit or loss. The Group uses
+forward currency contracts as hedges of its
+exposure to foreign currency risk in forecast
+transactions and firm commitments. Amounts
+recognised as OCI are transferred to profit
+or loss when the hedged transaction affects
+profit or loss, such as when a forecast sale
+occurs. When the hedged item is the cost of a
+non-financial asset or non-financial liability, the
+amounts recognised as OCI are transferred to
+the initial carrying amount of the non-financial
+asset or liability.
+(ii) Cash flow hedges
+Changes in fair value of the designated
+portion of derivatives that qualify as fair
+value hedges are recognised in the statement
+of profit and loss immediately, together with
+any changes in the fair value of the hedged
+asset or liability that are attributable to the
+hedged risk.
+Fair value hedges
+(i)
+Hedges that meet the strict criteria for hedge
+accounting are accounted for, as described below:
+Statutory Reports
+risk management objective and strategy for
+undertaking hedge, the hedging/economic
+relationship, the hedged item or transaction, the
+nature of the risk being hedged, hedge ratio and
+how the entity will assess the effectiveness of
+changes in the hedging instrument's fair value in
+offsetting the exposure to changes in the hedged
+item's fair value or cash flows attributable to the
+hedged risk. Such hedges are expected to be
+highly effective in achieving offsetting changes
+in fair value or cash flows and are assessed on an
+ongoing basis to determine that they actually have
+been highly effective throughout the financial
+reporting periods for which they were designated.
+• Hedges of a net investment in a
+foreign operation.
+• Cash flow hedges when hedging the exposure
+to variability in cash flows that is either
+attributable to a particular risk associated with a
+recognised asset or liability or a highly probable
+forecast transaction or the foreign currency risk
+in an unrecognised firm commitment.
+firm commitment.
+• Fair value hedges when hedging the exposure
+to changes in the fair value of a recognised
+asset or liability or an unrecognised
+For the purpose of hedge accounting, hedges are
+classified as:
+Any gains or losses arising from changes in the
+fair value of derivatives are taken directly to profit
+or loss, except for the effective portion of cash
+flow hedges, which is recognised in OCI and later
+reclassified to profit or loss when the hedge item
+affects profit or loss or treated as basis adjustment
+if a hedged forecast transaction subsequently
+results in the recognition of a non-financial asset
+or non-financial liability.
+Initial recognition and subsequent measurement
+The Group uses derivative financial instruments,
+such as forward currency contracts, full currency
+swap, principal only swap, options and interest
+rate swaps to hedge its foreign currency risks and
+interest rate risks respectively. Such derivative
+financial instruments are initially recognised at fair
+value on the date on which a derivative contract
+is entered into and are subsequently re-measured
+at fair value at the end of each reporting period.
+Derivatives are carried as financial assets when
+the fair value is positive and as financial liabilities
+when the fair value is negative.
+Derivative financial instruments and hedge
+accounting
+to perform an activity that is significant to its
+operations. If the Group reclassifies financial
+assets, it applies the reclassification prospectively
+from the reclassification date which is the first day
+of the immediately next reporting period following
+the change in business model. The Group does
+not restate any previously recognised gains, losses
+(including impairment gains or losses) or interest.
+At the inception of a hedge relationship, the
+Group formally designates and documents the
+hedge relationship to which the Group wishes to
+apply hedge accounting and the risk management
+objective and strategy for undertaking the
+hedge. The documentation includes the Group's
+for the year ended March 31, 2024
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+a provision is presented in the statement of profit
+and loss net of any reimbursement.
+Provisions are recognised when the Group has
+a present obligation (legal or constructive) as a
+result of past event, it is probable that an outflow
+of resources embodying economic benefits will
+be required to settle the obligation and a reliable
+estimate can be made of the amount of obligation.
+When the Company expects some or all of a
+provision to be reimbursed, for example, under
+an insurance contract, the reimbursement is
+recognised as a separate asset, but only when the
+reimbursement is certain. The expense relating to
+assets
+Provisions, contingent liabilities and contingent
+The factors that the Company considers in
+determining the allowance for slow moving,
+obsolete and other non-saleable inventory
+include estimated shelf life, planned product
+discontinuances, price changes, ageing of
+inventory and introduction of competitive new
+products, to the extent each of these factors
+impact the Company's business and markets.
+The Company considers all these factors and
+adjusts the inventory provision to reflect its actual
+experience on a periodic basis.
+Net realisable value is the estimated selling price in
+the ordinary course of business, less the estimated
+costs of completion and costs necessary to make
+the sale.
+Inventories consisting of raw materials and packing
+materials, work-in-progress, stock-in-trade, stores
+and spares and finished goods are measured at
+the lower of cost and net realisable value. The
+cost of all categories of inventories is based
+on the weighted average method. Cost of raw
+materials and packing materials, stock-in-trade,
+stores and spares includes cost of purchases and
+other costs incurred in bringing the inventories
+to its present location and condition. Cost of
+work-in-progress and finished goods comprises
+direct material, direct labour, amortisation and
+depreciation of intangible / tangible assets and an
+appropriate proportion of other variable and fixed
+overhead expenditure.
+m.
+Inventories
+231
+I.
+Group as a lessor
+The Group applies the short-term lease recognition
+exemption to its short-term leases (i.e., those
+leases that have a lease term of 12 months or less
+from the commencement date and do not contain
+a purchase option). It also applies the lease of low-
+value assets recognition exemption to leases that
+are considered to be low value. Lease payments on
+short-term leases and leases of low-value assets
+are recognised as expense on a straight-line basis
+over the lease term.
+Group as a lessee
+The Group assesses at contract inception whether
+a contract is, or contains, a lease. That is, if the
+contract conveys the right to control the use of an
+identified asset for a period of time in exchange
+for consideration.
+Leases
+The Group designates certain foreign
+currency liability as hedge against certain net
+investment in foreign subsidiaries. Hedges
+of net investments in foreign operations
+are accounted similar to cash flow hedges.
+Any gain or loss on the hedging instrument
+relating to the effective portion of the hedge
+is recognised in other comprehensive income
+and held in foreign currency translation
+reserve ('FCTR')- a component of equity.
+The ineffective portion of the gain or loss
+on these hedges is immediately recognised
+in profit or loss. The amounts accumulated
+in equity are included in profit or loss
+when the foreign operation is disposed or
+partially disposed.
+(iii) Net Investment Hedge
+k.
+for the year ended March 31, 2024
+Rental income from operating lease is generally
+recognised on a straight-line basis over the
+term of the relevant lease. Where the rentals
+are structured solely to increase in line with
+expected general inflation to compensate for
+the Group's expected inflationary cost increases,
+such increases are recognised in the year in which
+such benefits accrue. Initial direct costs incurred
+in negotiating and arranging an operating lease
+are added to the carrying amount of the leased
+asset and recognised over the lease term on the
+same basis as rental income. Contingent rents are
+recognised as revenue in the period in which they
+are earned.
+If the effect of the time value of money is material,
+provisions are determined by discounting the
+expected future cash flows at a pre-tax rate
+that reflects current market assessments of the
+time value of money and the risks specific to the
+liability. Where discounting is used, the increase
+in the provision due to the passage of time is
+recognised as a finance cost.
+Notes to the Consolidated Financial Statements
+Corporate Overview Statutory Reports
+As at
+in Million
+As at
+March 31, 2024
+1.3
+149.4
+March 31, 2023
+98.9
+6.2
+4.1
+3.5
+0.4
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+10.5
+0.4
+0.4
+246.0
+100.7
+1.4
+1.2
+418.7
+214.0
+• In respect of taxable temporary differences
+associated with investments in subsidiaries,
+associates and interests in joint ventures, when
+the timing of the reversal of the temporary
+differences can be controlled and it is probable
+that the temporary differences will not reverse
+in the foreseeable future.
+8.3
+Financial Statements
+Consolidated
+Net of accumulated depreciation and amortisation
+Statutory Reports
+230
+Patient First. Always.
+The Group determines classification of financial
+assets and liabilities on initial recognition. After
+initial recognition, no reclassification is made for
+financial assets which are equity instruments
+and financial liabilities. For financial assets which
+are debt instruments, a reclassification is made
+only if there is a change in the business model for
+managing those assets. Changes to the business
+model are expected to be infrequent. The
+Group's senior management determines change
+in the business model as a result of external or
+internal changes which are significant to the
+Group's operations. Such changes are evident to
+external parties. A change in the business model
+occurs when the Group either begins or ceases
+Reclassification of financial assets
+A financial liability is derecognised when the
+obligation under the liability is discharged or
+cancelled or expires. When an existing financial
+liability is replaced by another from the same
+lender on substantially different terms, or the
+terms of an existing liability are substantially
+modified, such an exchange or modification is
+treated as the de-recognition of the original
+liability and the recognition of a new liability.
+The difference between the carrying amount
+of the financial liability derecognised and the
+consideration paid and payable is recognised in the
+statement of profit and loss.
+De-recognition
+After initial recognition, such financial liabilities are
+subsequently measured at amortised cost using
+the EIR method. Amortised cost is calculated by
+taking into account any discount or premium on
+acquisition and fees or costs that are an integral
+part of the EIR. The EIR amortisation is included as
+finance costs in the statement of profit and loss.
+Financial liabilities that are not held-for-trading and
+are not designated as at FVTPL are measured at
+amortised cost in subsequent accounting periods.
+The carrying amounts of financial liabilities that
+are subsequently measured at amortised cost
+are determined based on the effective interest
+rate (EIR) method. Interest expense that is not
+capitalised as part of costs of an asset is included
+in the 'Finance costs' line item in the statement of
+profit and loss.
+Financial liabilities subsequently measured at
+amortised cost
+Corporate Overview
+Financial liabilities designated upon initial
+recognition at fair value through profit or loss
+are designated as such at the initial date of
+recognition, and only if the criteria in Ind AS 109
+are satisfied. For instruments not held-for-trading
+financial liabilities designated as at FVTPL, fair
+value gains/losses attributable to changes in
+own credit risk are recognised in OCI, unless
+the recognition of the effects of changes in the
+liability's credit risk in OCI would create or enlarge
+an accounting mismatch in profit or loss, in which
+case these effects of changes in credit risk are
+recognised in profit or loss. These gains/loss are
+not subsequently transferred to profit or loss. All
+other changes in fair value of such liability are
+recognised in the consolidated profit or loss.
+All financial liabilities are subsequently measured
+at amortised cost using the effective interest
+method or at FVTPL.
+Subsequent measurement
+The Company's financial liabilities include trade
+and other payables, loans and borrowings
+including bank overdrafts and lease liabilities,
+financial guarantee contracts and derivative
+financial instruments.
+All financial liabilities are recognised initially at
+fair value and, in the case of loans and borrowings
+and payables, net of directly attributable
+transaction costs.
+Initial recognition and measurement
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+229
+Financial Statements
+Consolidated
+Financial liabilities at fair value through profit or loss
+Financial liabilities are classified as at FVTPL
+when the financial liability is held for trading or
+is designated upon initial recognition as at fair
+value through profit or loss. Financial liabilities are
+classified as held for trading if they are incurred
+principally for the purpose of repurchasing in
+the near term or on initial recognition it is part
+of a portfolio of identified financial instruments
+that the Group manages together and has a
+recent actual pattern of short-term profit-taking.
+This category also includes derivative financial
+instruments that are not designated as hedging
+instruments in hedge relationships as defined by
+Ind AS 109. Gains or losses on liabilities held for
+trading are recognised in the statement of profit
+and loss.
+Patient First. Always.
+Depreciation expense
+Corporate Overview Statutory Reports
+Short-term and Other long-term employee benefits
+Accumulated leave, which is expected to be
+utilised within the next 12 months, is treated
+as short-term employee benefit. The Company
+measures the expected cost of such absences
+as the additional amount that it expects to pay
+as a result of the unused entitlement that has
+accumulated at the reporting date.
+Termination benefits are recognised as an expense
+in the statement of profit and loss when the
+Company is demonstrably committed, without
+realistic possibility of withdrawal, to a formal
+detailed plan to either terminate employment
+before the normal retirement date, or to provide
+termination benefits as a result of an offer
+made to encourage voluntary redundancy.
+Termination benefits for voluntary redundancies
+are recognised as an expense in the statement of
+profit and loss if the Company has made an offer
+encouraging voluntary redundancy, it is probable
+that the offer will be accepted, and the number of
+acceptances can be estimated reliably.
+Termination benefits
+end of the reporting period on government bonds.
+The currency and term of the government bonds
+shall be consistent with the currency and estimated
+term of the post-employment benefit obligations.
+The current service cost of the defined benefit
+plan, recognised in the statement of profit and
+loss as employee benefits expense, reflects the
+increase in the defined benefit obligation resulting
+from employee service in the current year, benefit
+changes, curtailments and settlements. Past
+service costs are recognised in the statement of
+profit and loss in the period of a plan amendment.
+The net interest cost is calculated by applying the
+discount rate to the net balance of the defined
+benefit obligation and the fair value of plan assets.
+This cost is included in employee benefit expense
+in the statement of profit and loss. Actuarial gains
+and losses arising from experience adjustments
+and changes in actuarial assumptions are charged
+or credited to OCI in the period in which they arise
+and is reflected immediately in retained earnings
+and is not reclassified to profit or loss.
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+234
+The Group treats accumulated leave expected to
+be carried forward beyond twelve months, as long-
+term employee benefit for measurement purposes.
+Such long-term compensated absences are
+provided for based on the actuarial valuation using
+the projected unit credit method at the year-end.
+Actuarial gains/losses are immediately taken to the
+statement of profit and loss and are not deferred.
+Patient First. Always.
+The Company operates a defined benefit gratuity
+plan which requires contribution to be made to a
+separately administered fund.
+Defined benefit plans
+Vehicles
+The Group recognises government grants only
+when there is reasonable assurance that the
+conditions attached to them will be complied
+with, and the grants will be received. When the
+grant relates to an expense item, it is recognised
+as income on a systematic basis over the periods
+that the related costs, for which it is intended to
+compensate, are expensed. When the grant relates
+to an asset, the Company deducts such grant
+amount from the carrying amount of the asset.
+Government grants
+Interest income from a financial asset is recognised
+when it is probable that the economic benefits will
+flow to the Group and the amount of income can
+be measured reliably. Interest income is accrued
+on a time basis, by reference to the principal
+outstanding and at the effective interest rate
+applicable, which is the rate that exactly discounts
+estimated future cash receipts through the
+expected life of the financial asset to that asset's
+net carrying amount on initial recognition.
+Dividend income is recognised when the Group's
+right to receive the payment is established,
+which is generally when shareholders approve
+the dividend.
+Dividend and interest income
+Royalty revenue is recognised on an accrual
+basis in accordance with the substance of
+the relevant agreement (provided that it is
+probable that economic benefits will flow to
+the Group and the amount of revenue can
+be measured reliably). Royalty arrangements
+that are based on production, sales and other
+measures are recognised by reference to the
+underlying arrangement.
+The liability in respect of defined benefit plans is
+calculated using the projected unit credit method
+with actuarial valuations being carried out at
+the end of each annual reporting period. The
+present value of the defined benefit obligation is
+determined by discounting the estimated future
+cash outflows by reference to market yields at the
+Royalties
+r.
+Defined contribution plans
+S.
+232
+• When the deferred tax liability arises from the
+initial recognition of goodwill or an asset or
+liability in a transaction that is not a business
+combination and, at the time of the transaction,
+affects neither the accounting profit nor taxable
+profit or loss and does not give rise to equal
+taxable and deductible temporary differences;
+Deferred tax liabilities are recognised for all
+taxable temporary differences, except:
+Deferred tax assets are reviewed at each reporting
+date and are reduced to the extent that it is no
+longer probable that the related tax benefit will be
+realised. Withholding tax arising out of payment of
+dividends to shareholders under the Indian Income
+tax regulations is not considered as tax expense
+for the Company and all such taxes are recognised
+in the consolidated statement of changes in equity
+as part of the associated dividend payment.
+• In respect of deductible temporary differences
+associated with investments in subsidiaries,
+associates and interests in joint ventures,
+deferred tax assets are recognised only to the
+extent that it is probable that the temporary
+differences will reverse in the foreseeable
+future and taxable profit will be available
+against which the temporary differences can
+be utilised.
+• When the deferred tax asset relating to the
+deductible temporary difference arises from
+the initial recognition of an asset or liability in a
+transaction that is not a business combination
+and, at the time of the transaction, affects
+neither the accounting profit nor taxable profit
+or loss and does not give rise to equal taxable
+and deductible temporary differences;
+A deferred tax asset is recognised to the extent
+that it is probable that future taxable profits
+will be available against which the temporary
+difference can be utilised except:
+The Company recognises a deferred tax asset
+arising from unused tax losses or tax credits only
+to the extent that the entity has sufficient taxable
+temporary differences or there is convincing other
+evidence that sufficient taxable profit will be
+available against which the unused tax losses or
+unused tax credits can be utilised by the entity.
+The Group's net obligation in respect of other long
+term employee benefits is the amount of future
+benefit that employees have earned in return for
+their service in the current and previous periods.
+That benefit is discounted to determine its
+present value.
+for the year ended March 31, 2024
+235
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Deferred tax is measured at the tax rates that
+are expected to be applied to the temporary
+differences when they reverse, based on the laws
+that have been enacted or substantively enacted
+by the end of the reporting period. Deferred tax
+assets and liabilities are offset if there is a legally
+enforceable right to set off corresponding current
+tax assets against current tax liabilities and the
+deferred tax assets and deferred tax liabilities
+relate to income taxes levied by the same tax
+authority on the Company.
+Deferred tax is recognised on temporary
+differences between the carrying amounts of
+assets and liabilities in the consolidated financial
+statements and the corresponding tax bases used
+in the computation of taxable profit. Deferred tax
+is not recognised for the temporary differences
+that arise on the initial recognition of assets or
+liabilities in a transaction that is not a business
+combination and that affects neither accounting
+nor taxable profits and taxable temporary
+differences arising upon the initial recognition
+of goodwill.
+Income tax expense consists of current and
+deferred tax. Income tax expense is recognised in
+profit or loss except to the extent that it relates
+to items recognised in OCI or directly in equity,
+in which case it is recognised in OCI or directly in
+equity respectively. Current tax is the expected
+tax payable on the taxable profit for the year, using
+tax rates enacted or substantively enacted by the
+end of the reporting period, and any adjustment
+to tax payable in respect of previous years.
+Current tax assets and tax liabilities are offset
+where the Company has a legally enforceable
+right to offset and intends either to settle on a
+net basis, or to realise the asset and settle the
+liability simultaneously.
+Income tax
+The Group's contributions to defined contribution
+plans are recognised as an expense as and when
+the services are received from the employees
+entitling them to the contributions. The Group
+does not have any obligation other than the
+contribution made.
+Notes to the Consolidated Financial Statements
+payments received are deferred and recognised as
+revenue over the expected period over which the
+related services are expected to be performed.
+Financial Statements
+Consolidated
+p.
+The Company from time to time enters into
+arrangements for the sale of its products in certain
+markets. Under such arrangements, the Company
+sells its products to the business partners at a base
+purchase price agreed upon in the arrangement
+and is also entitled to a profit share which is over
+and above the base purchase price. The profit
+share is typically dependent on the ultimate
+net sale proceeds or net profits, subject to any
+reductions or adjustments that are required by the
+terms of the arrangement.
+Profit Sharing Revenues
+In determining the transaction price, the Group
+considers the effects of variable consideration,
+the existence of significant financing components,
+non-cash consideration, and consideration payable
+to the customer (if any). The Group estimates
+variable consideration at contract inception until
+it is highly probable that a significant revenue
+reversal in the amount of cumulative revenue
+recognised will not occur when the associated
+uncertainty with the variable consideration is
+subsequently resolved.
+is stated net of goods and service tax and net of
+returns, chargebacks, rebates and other similar
+allowances. These are calculated on the basis of
+historical experience and the specific terms in the
+individual contracts.
+Revenue from contracts with customers is
+recognised when control of the goods or services
+are transferred to the customer at an amount that
+reflects the consideration to which the Group
+expects to be entitled in exchange for those goods
+or services. The Group has generally concluded
+that it is the principal in its revenue arrangements,
+since it is the primary obligor in all of its revenue
+arrangement, as it has pricing latitude and is
+exposed to inventory and credit risks. Revenue
+Sale of goods
+Revenue
+Contingent assets are not recognised in the
+consolidated financial statements. A contingent
+asset is disclosed where an inflow of economic
+benefits is probable. Contingent assets are
+assessed continually and, if it is virtually certain
+that an inflow of economic benefits will arise, the
+asset and related income are recognised in the
+period in which the change occurs.
+(ii) Present obligations arising from past events
+where it is not probable that an outflow
+of resources will be required to settle the
+obligation or a reliable estimate of the
+amount of the obligation cannot be made.
+Revenue in an amount equal to the base purchase
+price is recognised in these transactions upon
+delivery of products to the business partners. An
+additional amount representing the profit share
+component is recognised as revenue only to the
+extent that it is highly probable that a significant
+reversal will not occur.
+Possible obligations which will be confirmed
+only by future events not wholly within the
+control of the Company, or
+Contingent liabilities and contingent assets
+Contingent liability is disclosed for,
+Onerous contracts
+A provision for restructuring is recognised when
+the Group has a detailed formal restructuring
+plan and has raised a valid expectation in those
+affected that it will carry out the restructuring
+by starting to implement the plan or announcing
+its main features to those affected by it. The
+measurement of a restructuring provision includes
+only the direct expenditure arising from the
+restructuring, which are those amounts that are
+both necessarily entailed by the restructuring
+and not associated with the ongoing activities of
+the entity.
+Restructuring
+n.
+for the year ended March 31, 2024
+q.
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+(i)
+Out-licensing arrangements
+Present obligations arising under onerous
+contracts are recognised and measured as
+provisions. An onerous contract is considered to
+exist where the Group has a contract under which
+the unavoidable costs of meeting the obligations
+under the contract exceed the economic benefit
+expected to be received from the contract.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Rendering of services
+Revenue from services rendered is recognised in
+the statement of profit and loss as the underlying
+services are performed. Upfront non-refundable
+Revenues include amounts derived from product
+out-licensing agreements. These arrangements
+typically consist of an initial up-front payment on
+inception of the license and subsequent payments
+dependent on achieving certain milestones in
+accordance with the terms prescribed in the
+agreement. Non-refundable up-front license fees
+received in connection with product out-licensing
+agreements are deferred and recognised over
+the period in which the Company has continuing
+performance obligations. Milestone payments
+which are contingent on achieving certain clinical
+milestones are recognised as revenues either on
+achievement of such milestones, if the milestones
+are considered substantive, or over the period the
+Company has continuing performance obligations,
+if the milestones are not considered substantive.
+0.
+A contract liability is the obligation to transfer
+goods or services to a customer for which the
+Group has received consideration (or an amount
+of consideration is due) from the customer. If a
+customer pays consideration before the Group
+transfers goods or services to the customer, a
+contract liability is recognised when the payment
+is made or the payment is due (whichever is
+earlier). Contract liabilities are recognised
+as revenue when the Group performs under
+the contract.
+Contract liabilities
+Trade receivables
+customer consideration or before payment is
+due, a contract asset is recognised for the earned
+consideration that is conditional. Contract assets
+are subject to impairment assessment.
+pays
+A contract asset is the right to consideration in
+exchange for goods or services transferred to the
+customer. If the Group performs by transferring
+goods or services to a customer before the
+A receivable represents the Group's right to an
+amount of consideration that is unconditional
+(i.e., only the passage of time is required before
+payment of the consideration is due).
+Contract balances
+Corporate Overview
+The Group accounts for sales returns accrual
+by recording an allowance for sales returns
+concurrent with the recognition of revenue at
+the time of a product sale. This allowance is
+based on the Group's estimate of expected sales
+returns. With respect to established products,
+the Group considers its historical experience
+of sales returns, levels of inventory in the
+distribution channel, estimated shelf life, product
+discontinuances, price changes of competitive
+products, and the introduction of competitive
+new products, to the extent each of these factors
+impact the Group's business and markets. With
+respect to new products introduced by the
+Group, such products have historically been
+either extensions of an existing line of product
+where the Group has historical experience or in
+therapeutic categories where established products
+exist and are sold either by the Company or the
+Company's competitors.
+Sales returns
+233
+for the year ended March 31, 2024
+Statutory Reports
+Contract assets
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Derivatives designated as hedges
+Unbilled revenue (Refer note 53)
+Share application money pending allotment*
+Others
+* Tarsier Pharma Ltd.
+NOTE: 9 INCOME TAX ASSET (NET) [NON-CURRENT]
+* Includes amount paid under protest
+NOTE: 10 OTHER ASSETS (NON-CURRENT)
+Capital advances
+Prepaid expenses
+Security deposits - unsecured, considered good
+Balances with government authorities*
+* Includes amount paid under protest.
+Advance income tax (net of provisions)*
+NOTE: 8 OTHER FINANCIAL ASSETS (NON-CURRENT)
+Corporate Overview
+Secured, considered good
+Aggregate amount of unquoted investments before impairment
+Aggregate amount of impairment in value of investments
+NOTE: 11 INVENTORIES
+7,443.1
+6,957.9
+1,149.3
+1,146.1
+Unsecured, considered good
+* Various small denomination bonds individually below USD 5 Million comprised of sovereign bonds, corporate bonds, perpetual bonds, etc.
+Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+NOTE: 7 LOANS (NON-CURRENT)
+Loans to employees
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Lower of cost and net realisable value
+Raw materials and packing materials
+108.3
+Work-in-progress
+58.1
+57.5
+603.5
+1,179.5
+781.2
+1,710.4
+As at
+0.1
+March 31, 2024
+22,850.3
+22,850.3
+March 31, 2023
+23,069.8
+23,069.8
+As at
+March 31, 2024
+1,887.8
+44,869.1
+in Million
+As at
+in Million
+As at
+March 31, 2023
+763.3
+March 31, 2024
+517.9
+As at
+Finished goods
+Stock-in-trade
+Goods-in-transit
+Stores and spares
+241
+As at
+in Million
+As at
+March 31, 2024
+March 31, 2023
+0.1
+1.4
+8.4
+4.7
+8.5
+6.1
+Goods-in-transit
+53,692.4
+(0.5)
+53,692.4
+Biotech Consortium India Limited
+Shares of 10 each fully paid
+Less: Impairment in value of investment
+50,000
+0.5
+50,000
+(934.0)
+0.5
+(0.5)
+Reanal Finomvegyszergyar Zrt.
+Less: Impairment in value of investment
+Lyndra Therapeutics Inc
+Shares of USD 0.001 each fully paid
+Others
+328.2
+Limited liability partnership - Unquoted - At fair value through
+other comprehensive income
+(934.0)
+Shares of 10 each fully paid
+6,013.5
+1,702,679
+712.9
+2,167,679
+1,615.6
+174.8
+718.3
+Less: Impairment in value of investment
+212.6
+Equity instruments - Unquoted - At fair value through Profit or Loss
+Shimal Research Laboratories Limited
+9,340,000
+934.0
+9,340,000
+934.0
+669.1
+44,869.1
+ABCD Technologies LLP
+214.8
+807.9
+70,000
+572.6
+132,540
+971.6
+141,000
+1,300.2
+684.1
+5,079.8
+4,444.2
+4,603.7
+59,986.2
+50,680.9
+Aggregate book value (carrying value) of quoted investments
+Aggregate amount of quoted investments at market value
+3,078.5
+38,894
+160,000
+100,000
+33,041.7
+38,894
+211.6
+(214.8)
+(211.6)
+78,661,289
+2,502.2
+28,003.7
+415.9
+297.2
+406.2
+Debentures/bonds - Quoted - At fair value through other
+comprehensive income
+Bonds (various small denomination)*
+ONGC Videsh 4.625% Regd. Notes maturing July 15, 2024
+NTPC 4.375% Regd. Medium Term Notes maturing November
+26, 2024
+State Bank of India 4.875% Notes maturing April 17, 2024
+Vedanta Resources Plc 13.875% maturing on December 09,
+2028 (March 31, 2023 - 6.125% maturing on August 09, 2024)
+Venture funds - Unquoted - At fair value through Profit or Loss
+Others - Quoted - At fair value through other comprehensive
+income (small denomination U.S Treasuries, certificate of deposits,
+commercial papers, etc.)
+325.8
+2,523.3
+1,329.5
+1,303.9
+HSBC Liquid Fund - Direct Growth (Formerly known as HSBC Cash Fund Growth
+Direct Plan)
+5,955.0
+4,058.0 1,081,358
+686,750
+Nippon India Liquid Fund Direct Growth Plan
+3,031.4
+802,122
+SBI Liquid Fund Direct Growth
+1,308.5
+368,444
+TATA Liquid Fund - Growth - Direct Plan
+1,030.7
+4,132.3
+3,941.5
+866,571
+3,172.0
+4,345.1 1,592,103
+650,127
+1,560,301
+803,999
+3,813.9 2,341,407
+5,249.7
+ICICI Prudential Liquid - Direct Plan - Growth
+2,801,627
+1,001.3 14,349,382
+1,973,320
+4,781.0
+Baroda BNP Paribas Liquid Fund - Direct Growth
+Sundaram Liquid Fund Direct Growth
+825,637
+2,736.9
+843,775
+2,607.4
+Invesco India Liquid Fund - Direct Plan - Growth
+Kotak Liquid Scheme Plan Direct Plan - Growth
+4,747.8
+UTI Liquid Fund (Formerly UTI Liquid Cash Plan) Direct Plan - Growth
+Others
+717,550
+43,859.4
+44,377.4
+Aggregate amount of impairment in value of investments
+* Investments in mutual funds have been fair valued at closing net asset value (NAV).
+#Various small denomination bonds individually below USD 5 Million comprised of sovereign bonds, corporate bonds, perpetual bonds, etc.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Aggregate amount of unquoted investments before impairment
+Corporate Overview
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+NOTE: 13 TRADE RECEIVABLES
+Unsecured
+Considered good
+Statutory Reports
+HDFC Liquid Fund - Direct Plan - Growth Option
+49,348.7
+Aggregate amount of quoted investments at market value
+2,840.0 1,098,818
+4,054.0
+634.0
+Others - Quoted - At fair value through other comprehensive income (small
+denomination U.S Treasuries, certificate of deposits, commercial papers, etc.)
+Equity instruments - Quoted - At fair value through Other comprehensive income
+Amneal Pharmaceuticals Inc.
+13,656.0
+19,786.8
+41,986.0
+1,221,138
+Shares of USD 0.01 each fully paid
+85,845.4
+93,726.1
+Aggregate book value (carrying value) of quoted investments
+41,986.0
+49,348.7
+617.2
+2,002.6
+842,638
+2,438.7
+459.7
+348.7
+8,462.7
+9,550.8
+1,482.0
+1,310.5
+9,202.1
+98,682.9
+(i) Inventory write downs are accounted considering the nature of inventory, estimated shelf life, planned product discontinuances, price changes,
+ageing of inventory and introduction of competitive new products as well as the provisioning policy. Write downs of inventories amounted to
+*27,144.9 Million (March 31, 2023: 22,082.4 Million). The impact of write downs are recognised in the consolidated statement of profit and loss.
+(ii) The cost of inventories recognised as an expense is disclosed in notes 32, 33 and 36 and as purchases of stock-in-trade in the consolidated
+statement of profit and loss.
+Patient First. Always.
+242
+Corporate Overview Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+105,130.5
+for the year ended March 31, 2024
+8,003.0
+37,345.0
+150.0
+2,269.8
+4,739.3
+3,723.7
+As at
+March 31, 2024
+* in Million
+As at
+34,510.9
+March 31, 2023
+31,008.3
+287.3
+459.0
+31,295.6
+34,784.5
+20,097.6
+24,973.8
+34,325.5
+in Million
+As at
+March 31, 2023
+NOTE: 12 INVESTMENTS (CURRENT)
+Bonds (various small denomination investments)#
+Bandhan Liquid Fund - Growth - Direct Plan
+487,063
+1,445,798
+3,597.1 3,006,424
+1,307.1 1,729,947
+4,217.9
+1,091.5
+4,326.4
+(erstwhile IDFC Cash Fund - Growth - Direct Plan)
+DSP BlackRock liquidity Fund - Direct Plan - growth
+Axis Liquid Fund - Direct Growth
+1,014,182 3,262.8
+1,468,001
+1,547.0
+Franklin India Liquid Fund - Super Institutional Plan - Direct Plan - Growth
+Mirae Asset Liquid Fund (formerly Mirae Cash Management Fund) Direct Plan
+Growth
+277,141
+1,005.2
+956,226
+Bajaj Finserv Liquid Fund - Direct Plan - Growth
+Equity instruments - Quoted - At fair value through Profit or Loss
+Bonds/debentures - Quoted - At fair value through other comprehensive income
+9,231,064
+Mutual funds * - Unquoted - At fair value through Profit or Loss
+As at March 31, 2024
+Quantity *in Million
+472.4
+As at March 31, 2023
+Quantity * in Million
+644.6
+24,501.4
+28,917.3
+Aditya Birla Sun Life Liquid Fund Growth Direct Plan
+ONGC Videsh 4.625% Regd. Notes maturing July 15, 2024
+NTPC 4.375% Regd. Medium Term Notes maturing November 26, 2024
+100,000
+825.9
+State Bank of India 4.875% Notes maturing April 17, 2024
+70,000
+583.6
+160,000
+518,475
+Year ended
+March 31, 2023
+Less: Allowance for credit impaired
+(250.6)
+(31,295.6)
+69,043.3
+582.9
+(34,784.5)
+77,775.7
+NOTE: 33 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS
+Year ended
+March 31, 2024
+in Million
+Year ended
+March 31, 2023
+Inventories at the beginning of the year
+Finished goods
+Stock-in-trade
+Work-in-progress
+Less:
+Inventories at the end of the year
+Finished goods
+Stock-in-trade
+Work-in-progress
+Changes in inventories:
+Finished goods
+Stock-in-trade
+Work-in-progress
+Inventories taken over on acquisition
+Foreign currency translation difference
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+34,510.9
+30,648.1
+29,135.4
+82,841.9
+9,550.8
+65,805.0
+Foreign currency translation difference
+(1,613.0)
+208.0
+111.9
+292.1
+150.7
+Insurance claims
+Lease rental and hire charges
+Miscellaneous income
+85.0
+133.3
+226.1
+123.2
+546.7
+522.4
+13,541.9
+6,345.2
+NOTE: 32 COST OF MATERIALS CONSUMED
+in Million
+Year ended
+March 31, 2024
+Year ended
+March 31, 2023
+Raw materials and packing materials
+Inventories at the beginning of the year
+34,784.5
+Purchases during the year
+Inventories at the end of the year
+(2,277.2)
+7,666.0
+20,578.0
+5,698.7
+in Million
+As at
+March 31, 2023
+167.2
+3,429.1
+112.0
+4,999.4
+4,887.4
+March 31, 2024
+As at
+4,138.9
+141.7
+3,997.2
+March 31, 2024
+3,261.9
+As at
+March 31, 2023
+As at
+in Million
+37.9
+in Million
+As at
+March 31, 2023
+37.9
+March 31, 2024
+As at
+13.3
+13.3
+March 31, 2023
+March 31, 2024
+As at
+As at
+in Million
+129.5
+5,828.2
+24,973.8
+in Million
+As at
+March 31, 2024
+69,035.5
+58,892.1
+37,345.0
+34,510.9
+8,462.7
+9,550.8
+20,097.6
+24,973.8
+65,905.3
+69,035.5
+(2,834.1)
+(3,862.8)
+1,088.1
+(1,884.8)
+4,876.2
+(4,395.8)
+82.0
+(290.9)
+3.274.3
+2,921.3
+(6,869.1)
+26,433.5
+2,231.2
+2,010.1
+March 31, 2023
+As at
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(240.3)
+Net gain/(loss) on sale of financial assets measured at fair value through other comprehensive income
+Net gain/(loss) arising on financial assets measured at fair value through profit or loss
+Net gain on disposal of property, plant and equipment and other intangible assets
+Sundry balances written back, net
+in Million
+As at
+March 31, 2023
+69.4
+216.9
+113.5
+104.3
+69.8
+3,638.5
+125.2
+111.4
+3,045.0
+544.2
+33.2
+9,987.8
+1,062.8
+15,067.0
+10,207.7
+1,668.2
+15,930.9
+As at
+March 31, 2024
+9,432.7
+in Million
+As at
+March 31, 2023
+4,764.2
+433.3
+410.2
+832.1
+1,157.0
+146.5
+95.8
+10,844.6
+March 31, 2024
+6,427.2
+As at
+NOTE: 29 CURRENT TAX LIABILITIES (NET)
+28,443.6
+61,978.8
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+NOTE: 26 OTHER FINANCIAL LIABILITIES (CURRENT)
+Interest accrued
+Unpaid dividends
+Security deposits
+Payables on purchase of property, plant and equipment and other intangible assets
+Derivatives designated as hedges
+Derivatives not designated as hedges
+Payables to employee
+Others*
+Include claims, recall charges, milestone obligations, trade and other commitments.
+NOTE: 27 OTHER LIABILITIES (CURRENT)
+Statutory remittances
+Advance from customers (Refer note 53)
+Deferred revenue (Refer note 53)
+Others
+NOTE: 28 PROVISIONS (CURRENT)
+Employee benefits
+Others (Refer note 60)
+247
+(102.0)
+in Million
+As at
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+NOTE: 31 OTHER INCOME
+Year ended
+March 31, 2024
+in Million
+Year ended
+March 31, 2023
+Interest income on:
+Bank deposits at amortised cost
+Loans at amortised cost
+2,998.3
+11.2
+1,278.6
+Investments in debt instruments at fair value through other comprehensive income
+3,481.1
+9.5
+1,800.4
+Others [includes interest on income tax refund of 3,302.6 Million (March 31, 2023: 428.6 Million)]
+3,738.5
+756.9
+10,229.1
+3,845.4
+Dividend income on investments
+1,033.0
+1,464.5
+Net gain/(loss) on sale of financial assets measured at fair value through profit or loss
+3,301.1
+1,847.1
+Financial Statements
+Consolidated
+As at
+Corporate Overview Statutory Reports
+Patient First. Always.
+March 31, 2024
+March 31, 2023
+6,831.9
+4,702.7
+46,743.7
+48,841.1
+53,575.6
+53,543.8
+As at
+Provision for income tax (Net of advance income tax)
+March 31, 2024
+4,117.0
+4,117.0
+NOTE: 30 REVENUE FROM OPERATIONS
+in Million
+As at
+March 31, 2023
+3,087.1
+3,087.1
+Revenue from contracts with customers (Refer note 53)
+Other operating revenues*
+Year ended
+March 31, 2024
+477,584.5
+7,384.0
+484,968.5
+* in Million
+Year ended
+March 31, 2023
+432,788.7
+6,068.1
+438,856.8
+* Includes government grants of 6,342.3 Million (March 31, 2023: 5,699.7 Million) received by Indian entities of the Company.
+248
+Credit impaired
+Also refer note 67 for borrowings (current).
+From banks (unsecured)
+Unbilled Revenue (Refer note 53)
+Refund due from government authorities
+Derivatives not designated as hedges
+Derivatives designated as hedges
+Security deposits (unsecured, considered good)
+Interest accrued on investments/balances with banks
+NOTE: 17 OTHER FINANCIAL ASSETS (CURRENT)
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+244
+Patient First. Always.
+413.2
+650.2
+166.8
+191.6
+(111.2)
+(112.5)
+111.2
+112.5
+166.5
+190.9
+0.3
+0.7
+Others
+246.4
+Less: Allowance for doubtful*
+As at
+Prepaid expenses
+Export incentives receivable
+NOTE: 18 OTHER ASSETS (CURRENT)
+* The Group is carrying an allowance of 500.0 Million (March 31, 2023: 500.0 Million) against other receivables (Others) based on assessment
+regarding its future recoverability.
+7,645.1
+9,172.0
+(500.0)
+(500.0)
+2,848.5
+2,385.9
+182.8
+108.7
+4,307.9
+6,145.1
+177.3
+234.6
+25.0
+114.9
+278.6
+255.5
+325.0
+427.3
+March 31, 2023
+March 31, 2024
+As at
+in Million
+Advances for supply of goods and services
+(1,354.9)
+458.6
+1,369.1
+(1,369.1)
+458.6
+March 31, 2024
+in Million
+As at
+As at
+243
+* Others: Loans given to various parties at prevailing market interest rate.
+Less: Allowance for credit impaired
+Unsecured, credit impaired
+Unsecured, considered good
+Secured, considered good
+Loans to employees/others*
+Less: Allowance for credit impaired
+Unsecured, credit impaired (Refer note 61 and 68)
+Unsecured, considered good (Refer note 61 and 68)
+Loans to related parties
+NOTE: 16 LOANS (CURRENT)
+Balances held as margin money or security against guarantees and other commitments
+Unpaid dividend accounts
+Deposit accounts (with original maturity more than 3 months but less than 12 months)
+Earmarked balances with banks
+NOTE: 15 BANK BALANCES OTHER THAN DISCLOSED IN NOTE 14 ABOVE
+Cash on hand
+Cheques, drafts on hand
+In deposit accounts with original maturity less than 3 months
+In current accounts
+Balance with banks
+NOTE: 14 CASH AND CASH EQUIVALENTS
+March 31, 2023
+246.4
+1,354.9
+112,493.7
+4,058.1
+116,551.8
+114,385.1
+in Million
+As at
+March 31, 2023
+March 31, 2024
+As at
+25.5
+11,465.6
+12,350.3
+103.4
+112.7
+38.9
+11,336.7
+in Million
+As at
+March 31, 2023
+March 31, 2024
+12,198.7
+As at
+21.4
+46,237.3
+92,856.5
+18.0
+94.9
+224.4
+32,249.3
+13,871.7
+68,430.8
+24,183.3
+March 31, 2023
+in Million
+As at
+As at
+March 31, 2024
+(4,149.3)
+114,385.1
+118,534.4
+4,149.3
+(4,058.1)
+112,493.7
+Current maturities of long-term debt (Refer note 66)
+Considered good
+Less: Allowance for doubtful
+Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if
+any, is treated as capital reserve.
+29.0
+634,268.2
+557,554.5
+(206.1)
+3,160.8
+67,994.9
+70,935.3
+10,503.5
+(1,011.2)
+(258.7)
+Nature and purpose of each reserve
+Refer consolidated statement of changes in equity for detailed movement in above balances.
+Effective portion of cash flow hedges
+Foreign currency translation reserve
+Equity instrument through other comprehensive income
+Debt instrument through other comprehensive income
+7.5
+285.5
+35,621.0
+436,102.5
+35,621.0
+501,545.5
+285.5
+7.5
+43.8
+3,681.7
+11,874.1
+3,681.7
+11,874.1
+43.8
+March 31, 2023
+March 31, 2024
+in Million
+As at
+Securities premium - The amount received in excess of face value of the equity shares is recognised in securities premium. In
+case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value
+of share is accounted as securities premium. It is utilised in accordance with the provisions of the Companies Act, 2013.
+Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.
+As at
+-
+Retained earnings - The reserve are the profit/(loss) that the Company has earned/incurred till date, less any transfers to
+general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss/(gain)
+on defined benefit plans, net of taxes that will not be reclassfied to Statement of Profit and Loss.
+Other loans
+From banks (unsecured)
+Loans repayable on demand
+NOTE: 25 BORROWINGS (CURRENT)
+Others
+Deferred revenue (Refer note 53)
+NOTE: 24 OTHER LIABILITIES (NON-CURRENT)
+Others (Refer note 60)
+Employee benefits
+NOTE: 23 PROVISIONS (NON-CURRENT)
+Derivatives designated as hedges
+NOTE: 22 OTHER FINANCIAL LIABILITIES (NON-CURRENT)
+Also refer note 66 for borrowings (non-current).
+From others (unsecured)
+Term loans
+NOTE: 21 BORROWINGS (NON-CURRENT)
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+246
+Patient First. Always.
+Foreign currency translation reserve - Exchange differences relating to the translation of the results and net assets of the
+Group's foreign operations from their functional currencies to the Group's presentation currency (i.e. *) are recognised
+directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange difference in
+the foreign currency translation reserve are reclassified to consolidated profit or loss on the disposal of the foreign operation.
+Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gain
+or loss arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The
+cumulative gain or loss arising on the changes of the fair value of the designated portion of the hedging instruments that are
+recognised and accumulated under the cash flow hedges reserve will be reclassified to profit or loss only when the hedged
+transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged item.
+Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investments in
+equity instruments in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of
+equity instrument.
+Debt instrument through OCI - This represents the cumulative gain and loss arising on fair valuation of debt instruments
+measured through other comprehensive income. This amount will be reclassified to statement of profit and loss account on
+derecognition of debt instrument.
+Capital redemption reserve The Group has recognised capital redemption reserve on buyback of equity shares from its
+retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.
+Legal reserve - The reserve has been created by an overseas subsidiaries in compliance with requirements of local laws.
+General reserve - The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies
+Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
+Considered doubtful
+245
+B)
+5,990,000,000
+100,000
+Cumulative preference shares of 100 each
+Equity shares of 1 each
+Authorised
+*in Million
+As at March 31, 2023
+Number of shares
+19,616.5
+862.5
+646.7
+22,280.1
+10,480.5
+13,116.9
+(718.9)
+718.9
+777.2
+(777.2)
+4,552.7
+4,266.0
+March 31, 2023
+3.1
+3,717.7
+115.1
+4,135.4
+in Million
+As at
+As at
+March 31, 2024
+in Million
+As at March 31, 2024
+Number of shares
+NOTE: 19 EQUITY SHARE CAPITAL
+* Includes balances of goods and services tax.
+Balances with government authorities*
+Others
+5,990.0
+Items of other comprehensive income (OCI)
+10.0
+6,000.0
+5,990.0
+Retained earnings
+General reserve
+Legal reserve
+Capital redemption reserve
+Amalgamation reserve
+Securities premium
+Capital reserve
+Reserves and surplus
+A)
+NOTE: 20 OTHER EQUITY
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+914,107
+2,399.3
+2,399.3
+2,399,334,970
+2,399,334,970
+2,399.3
+2,399.3
+2,399,334,970
+2,399,334,970
+Equity shares of 1 each (Refer note 41)
+Issued, subscribed and fully paid up
+10.0
+6,000.0
+5,990,000,000
+100,000
+13,565.6
+57,351.4
+58.5
+(1,561.1)
+(5,715.6)
+(791.3)
+34,258.6
+6,618.6
+4,892.9
+in Million
+Year ended
+March 31, 2024
+40,098.1
+4,173.3
+(8.2)
+9,633.5
+(5.3)
+11,077.3
+(222.4)
+(4,501.1)
+(8,359.4)
+6,167.7
+10,030.9
+(82.7)
+542.5
+42,461.5
+126.3
+40,098.1
+WRS Bioproducts Pty Ltd
+52.4
+153
+153
+Intact Solutions LLC
+401.7
+763.9
+7,975.1
+1,999
+455,447
+455,447
+Tarsier Pharma Ltd
+1,999
+*in Million
+As at March 31, 2023
+Quantity
+in Million
+As at March 31, 2024
+Quantity
+528.3
+361.8
+740,071
+9,633.5
+Year ended
+March 31, 2024
+The Company as a part of its ongoing initiative of network strategy and optimisation of manufacturing facilities has identified
+divestment of its Goa and Silvasa facility. The plan involves transferring above assets and liabilities to a prospective buyer.
+The transfer is to be completed during the year 2024-25 and hence, these have been classified as held for sale. These assets
+and liabilities have been carried at cost as the same is lower than the fair value expected out of sale.
+March 31, 2023
+6.2
+March 31, 2024
+6.3
+6.3
+in Million
+As at
+As at
+239
+Lease liabilities
+LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+2,396.2
+914,107
+NOTE: 3D CAPITAL WORK-IN-PROGRESS
+Opening balance
+Additions
+Capitalised
+* in Million
+Medinstill LLC
+Equity instruments
+(Carrying amount determined using equity method of accounting)
+Unquoted, fully paid
+NOTE: 4 INVESTMENT IN ASSOCIATES (NON-CURRENT)
+Closing balance
+Foreign currency translation difference
+Year ended
+March 31, 2023
+Impairment (Refer note 61A and 36)
+Taken over on acquisition
+Additions
+Opening balance
+NOTE: 3E INTANGIBLE ASSETS UNDER DEVELOPMENT
+Closing balance
+Foreign currency translation difference
+Disposals
+Capitalised
+192.3
+6.2
+117.4
+361.6
+364.8
+361.6
+364.8
+361.6
+15,853
+364.8
+15,853
+* in Million
+As at March 31, 2023
+Quantity
+in Million
+As at March 31, 2024
+Quantity
+NOTE: 6 INVESTMENTS (NON-CURRENT)
+Aggregate carrying value of unquoted investments
+Artes Biotechnology GmbH
+As at March 31, 2024
+Quantity
+*in Million
+As at March 31, 2023
+Quantity
+*in Million
+1,036,943
+428,571
+63.3
+1,036,943
+327.6
+2,868,623
+Equity instruments - Quoted - At fair value through Profit or Loss
+Equity instruments
+Others (equity instruments received as part of distribution)
+Shares of USD 0.00001 each fully paid
+Krystal Biotech, Inc.
+Shares of 10 each fully paid
+Krebs Biochemicals and Industries Limited
+Shares of USD 0.01 each fully paid
+Amneal Pharmaceuticals Inc.
+Equity instruments - Quoted - At fair value through other
+comprehensive income
+Shares of USD 0.0001 each fully paid
+Unquoted, fully paid
+scPharmaceuticals Inc.
+NOTE: 5 INVESTMENT IN JOINT VENTURE (NON-CURRENT)
+627,184
+Surgimatix Inc
+474,511
+Remidio Innovative Solutions Private Limited
+Preference shares
+234.2
+8,538
+1,420.0
+251.4
+Agatsa Software Private Limited
+Ezerx Health Tech Private Limited
+77.3
+525
+Remidio Innovative Solutions Private Limited
+(Carrying amount determined using equity method of accounting)
+131.3
+1,077
+294.0
+474,511
+6,315
+Limited liability partnership
+1,420.0
+Corporate Overview Statutory Reports
+240
+3,474.8
+Notes to the Consolidated Financial Statements
+3,474.8
+4,061.3
+Patient First. Always.
+Financial Statements
+Consolidated
+4,061.3
+Aggregate carrying value of unquoted investments
+Generic Solar Power LLP [Nil (March 31, 2023: * Nil)]
+642.1
+for the year ended March 31, 2024
+Trumpcard Advisors and Finvest LLP
+648.0
+8,495.0
+498.1
+23,077.2
+834.5
+17.7
+852.2
+30,424.8
+803.7
+India
+Bangladesh
+Effective ownership for the year ended
+March 31, 2024 March 31, 2023
+2.
+Sun Pharmaceutical (Bangladesh) Limited
+100.00%
+12,053.8
+929.3
+31,277.0
+16.4
+820.1
+22,257.1
+1. Green Eco Development Centre Limited
+625.0
+37.1
+161.4
+241.2
+38.9
+55.9
+795.1
+92.8
+159.8
+77.2
+269.7
+100.00%
+1,219.6
+383.4
+1,829.4
+33.3
+72.50%
+6.
+3.
+9.
+100.00%
+335.9
+100.00%
+India
+Faststone Mercantile Company Private Limited
+8.
+100.00%
+100.00%
+India
+Sun Pharma Laboratories Limited
+7.
+100.00%
+100.00%
+Venezuela
+Sun Pharma De Venezuela, C.A.
+(Refer note g)
+Russia
+OOO "Sun Pharmaceutical Industries" Limited
+5.
+100.00%
+100.00%
+Japan
+Sun Pharma Japan Ltd.
+4.
+75.00%
+100.00%
+Mexico
+Sun Pharma De Mexico S.A. DE C.V.
+72.50%
+3,086.7
+Patient First. Always.
+251.6
+250
+7,265.3
+131,546.0
+12,014.5
+154,181.8
+Miscellaneous expenses
+302.5
+70.5
+Impairment of property, plant and equipment, goodwill, other intangible assets and
+intangible asset under development
+324.0
+340.8
+Payment to auditors (net of input credit, wherever applicable)
+36.5
+307.7
+Loss on sale/write off of property, plant and equipment and other intangible assets, net
+Corporate Overview Statutory Reports
+1,023.7
+Donations
+23,123.0
+29,531.6
+Professional, legal and consultancy
+426.2
+905.9
+Provision/write off/(reversal) for doubtful trade receivables/advances
+1,742.7
+1,455.5
+Communication
+9,340.6
+Neetnav Real Estate Private Limited
+8,124.7
+1,077.3
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+395.1
+616.8
+712.1
+Year ended
+March 31, 2023
+7,497.4
+Year ended
+March 31, 2024
+9,219.9
+* in Million
+Country of Incorporation
+Sun Pharmaceutical Industries Limited
+Parent Company
+(a) List of entities included in the Consolidated Financial Statements is as under:
+NOTE: 38
+Miscellaneous income
+Receipts from research activities
+Less:
+Miscellaneous expenses
+Professional, legal and consultancy
+Communication
+Travelling and conveyance
+Printing and stationery
+Repairs and maintenance
+Insurance
+Rent
+Rates and taxes
+Power and fuel
+Consumption of materials, stores and spare parts
+Staff welfare expenses
+Contribution to provident and other funds
+Salaries, wages and bonus
+NOTE: 37 RESEARCH AND DEVELOPMENT EXPENDITURE INCLUDED IN THE CONSOLIDATED STATEMENT OF
+PROFIT AND LOSS
+4,242.7
+India
+86.16%
+100.00%
+99.99%
+99.99%
+99.99%
+99.99%
+99.99%
+100.00%
+100.00%
+Germany
+Israel
+Netherlands
+Australia
+28. Sun Pharmaceuticals Germany GmbH
+99.99%
+99.99%
+99.99%
+Hungary
+100.00%
+United States of America
+100.00%
+100.00%
+United States of America
+Freight outward and handling charges
+86.16%
+95.67%
+96.10%
+Malaysia
+Nigeria
+Sun Pharmaceutical Industries (Australia) Pty Limited
+25.
+24.
+100.00%
+34.
+29. Sun Pharma Global FZE
+30. Sun Pharmaceuticals SA (Pty) Ltd
+Israel (Refer note b)
+100.00%
+100.00%
+United Arab Emirates
+100.00%
+100.00%
+Peru
+100.00%
+100.00%
+100.00%
+100.00%
+Philippines
+India
+(Refer note n)
+100.00%
+South Africa
+(Refer note h)
+(Refer note h)
+United Arab Emirates
+40. Taro International Ltd.
+39. Taro Pharmaceuticals Europe B.V.
+38. Taro Pharmaceuticals North America, Inc.
+37. Taro Pharmaceuticals U.S.A., Inc.
+36. Taro Pharmaceuticals Inc.
+35. Taro Pharmaceutical Industries Ltd. (Taro)
+Sun Laboratories FZE
+33. Sun Pharmaceutical Peru S.A.C.
+Caraco Pharmaceuticals Private Limited
+32.
+31. Sun Pharma Philippines, Inc.
+The Taro Development Corporation
+23.
+22.
+Ranbaxy Nigeria Limited
+100.00%
+India
+Foundation for Disease Elimination and Control of India
+15.
+100.00%
+100.00%
+Netherlands
+Sun Pharma (Netherlands) B.V.
+14.
+100.00%
+100.00%
+India
+Softdeal Pharmaceutical Private Limited
+13.
+100.00%
+100.00%
+Mauritius
+Sun Pharma Holdings
+12.
+100.00%
+100.00%
+India
+Skisen Labs Private Limited
+11.
+100.00%
+100.00%
+India
+Realstone Multitrade Private Limited
+10.
+100.00%
+100.00%
+(Refer note e)
+16. Zenotech Laboratories Limited
+21.
+27. Sun Pharmaceutical Industries (Europe) B.V.
+26. Aditya Acquisition Company Ltd.
+Alkaloida Chemical Company Zrt.
+Chattem Chemicals Inc.
+20. Ranbaxy (Malaysia) SDN. BHD.
+Effective ownership for the year ended
+March 31, 2024 March 31, 2023
+Country of Incorporation
+251
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+100.00%
+100.00%
+United States of America
+100.00%
+100.00%
+99.99%
+99.99%
+Brazil
+France
+19. Sun Pharmaceutical Industries, Inc.
+18. Sun Pharma France
+17. Sun Farmaceutica do Brasil Ltda.
+68.84%
+(Refer note f)
+68.84%
+(Refer note f)
+India
+(Refer note e)
+6,419.9
+The parent company and/or its subsidiaries are involved in various legal proceedings, including but not limited to
+product liability claims, contract disputes, employment claims, antitrust matters, compliance matters, and other legal
+and regulatory matters relating to the conduct of its business. Some of the key matters are discussed below. Most of
+the legal proceedings involve complex issues, which are specific to the case and do not have precedents, and, hence,
+for a majority of these claims, it is not possible to make a reasonable estimate of the expected financial effect, if any,
+that will result from ultimate resolution of the proceedings. This is due to a number of factors, including the stage of
+the proceedings and the overall length of the discovery process; the entitlement of the parties to an action to appeal a
+decision; the extent of the claims, including the size of any potential class, particularly when damages are not specified
+or are indeterminate; the possible need for further legal proceedings to establish the appropriate amount of damages, if
+any; the settlement posture of the other parties to the litigation; and any other factors that may have a material effect
+on the litigation. The Company makes its assessment of likely outcomes based on the views of internal legal counsel
+and in consultation with external legal counsel representing the Company. The Company also believes that disclosure
+of the amount sought by plaintiffs would not be meaningful because historical evidence indicates that the amounts
+settled (if any) are significantly different than those claimed by plaintiffs. Some of the legal claims against the Company,
+if decided against the Company or settled by the Company, may result in significant impact on its consolidated
+financial statements.
+Travelling and conveyance
+19.22%
+19.22%
+United States of America
+19.22%
+19.22%
+United States of America
+19.22%
+19.22%
+United States of America
+19.22%
+19.22%
+United States of America
+19.99%
+United States of America
+19.99%
+19.99%
+19.99%
+United States of America
+19.22%
+19.22%
+United States of America
+40.55%
+40.55%
+39.41%
+39.41%
+India
+India
+b.
+125. Remidio Innovative Solutions Inc.
+United States of America
+19.22%
+19.22%
+United States of America
+g.
+Books of accounts and other related records/documents of the overseas subsidiaries of the Zenotech Laboratories
+Limited were missing and due to non-availability of those records/information, Zenotech Laboratories Limited is unable
+to prepare consolidated accounts.
+Foundation for Disease Elimination and Control of India (FDEC), a wholly owned subsidiary incorporated in India on
+September 21, 2016 by the parent company as part of its Corporate Social Responsibility (CSR) initiative is a Section
+8 company not considered for consolidation since it can apply its income for charitable purposes only and can raise
+funds/contribution independently.
+In respect of entity at Sr. No. 96, 97, 98, 99, 107, 108 and 109 has been incorporated/ acquired during the year ended
+March 31, 2024.
+In respect of entity at Sr. Nos. 3, 33, 59, 71, 73, 80, 100, 101, 104, 105, 109 and from 113 to 123 the reporting date is
+different from the reporting date of the Parent Company.
+f.
+e.
+d.
+C.
+78.48%
+78.48%
+85.66%
+85.66%
+Beneficial ownership
+Following are the details of the Group's holding in Taro:
+Voting power
+27.39%
+29.15%
+United States of America
+27.39%
+29.15%
+Singapore
+19.22%
+19.22%
+United States of America
+19.22%
+19.22%
+United States of America
+19.22%
+19.22%
+124. Medios Technologies Pte. Ltd.
+123. Intact PUR-Needle LLC
+122. Intact Closed Transfer Connectors LLC
+121. Intact Solutions LLC
+78.48%
+99. Vivaldis Health and Foods Private Limited
+India
+60.11%
+Germany
+45.00%
+45.00%
+103. Trumpcard Advisors and Finvest LLP
+104. Tarsier Pharma Ltd.
+105. WRS Bioproducts Pty Ltd.
+106. Remidio Innovative Solutions Private Limited
+107. Agatsa Software Private Limited
+108. Ezerx Health Tech Private Limited
+109. Surgimatix Inc
+Name of Subsidiary of Associates
+110. Composite Power Generation LLP
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+United States of America
+19.99%
+19.99%
+India
+28.76%
+28.76%
+India
+40.61%
+40.61%
+Israel
+20.98%
+20.98%
+Australia
+United States of America
+With effect from May 23, 2022, OOO "Sun Pharmaceutical Industries" Limited has been dissolved.
+99.99%
+India
+120. Intact Media LLC
+119. Intact Pharmaceuticals LLC
+118. ALPS LLC
+117. Medinstill Development LLC
+116. Dr. Py Institute LLC
+115. HRE III LLC
+114. HRE II LLC
+113. HRE LLC
+112. Vento Power Generation LLP
+111. Vintage Power Generation LLP
+Effective ownership for the year ended
+March 31, 2024 March 31, 2023
+Country of Incorporation
+253
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+36.90%
+36.90%
+India
+16.33%
+United States of America
+37.76%
+India
+23.47%
+India
+27.39%
+29.15%
+Isreal
+h.
+With effect from November 23, 2023 Sun Pharma Global FZE has been dissolved.
+i.
+1,138.3
+581.7
+1,548.2
+836.5
+2,384.7
+Year ended
+March 31, 2023
+in Million
+Year ended
+March 31, 2024
+82,960.3
+94,290.6
+3,783.1
+4,968.2
+5,775.1
+6,012.3
+73,402.1
+83,310.1
+in Million
+Year ended
+March 31, 2023
+Year ended
+March 31, 2024
+249
+NOTE: 36 OTHER EXPENSES
+others (includes interest on income tax and lease liability)
+for financial liabilities carried at amortised cost
+Interest expense:
+NOTE: 35 FINANCE COSTS
+* Includes gratuity expense of 718.3 Million (March 31, 2023: 633.9 Million)
+Staff welfare expenses
+Contribution to provident and other funds*
+Salaries, wages and bonus
+NOTE: 34 EMPLOYEE BENEFITS EXPENSE
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+1,720.0
+Statutory Reports
+Year ended
+March 31, 2024
+Consumption of materials, stores and spare parts
+665.7
+1,705.8
+6,565.1
+7,795.7
+2,068.4
+2,234.9
+40,853.4
+47,443.0
+2,994.9
+3,043.5
+6,702.3
+7,535.0
+588.7
+734.3
+8,300.5
+7,607.8
+5,613.2
+6,302.6
+7,189.4
+7,767.9
+Printing and stationery
+Repairs and maintenance
+Commission on sales
+Selling, promotion and distribution
+Insurance
+Rates and taxes
+Rent
+Power and fuel
+Conversion and other manufacturing charges
+in Million
+Year ended
+March 31, 2023
+8,182.8
+Corporate Overview
+Financial Statements
+Consolidated
+Contingent liabilities
+A)
+March 31, 2023
+March 31, 2024
+As at
+As at
+in Million
+NOTE: 39 CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+254
+Patient First. Always.
+Material Accounting Policies and other Notes to these Consolidated Financial Statements are intended to serve as
+a means of informative disclosure and a guide for better understanding of the consolidated position of the Group.
+Recognising this purpose, the Group has disclosed only such policies and notes from the individual financial statements
+which fairly represent the needed disclosures. Lack of homogeneity and other similar considerations made it desirable
+to exclude some of them, which in the opinion of the management, could be better viewed when referred from the
+individual financial statements.
+Dusa Pharmaceuticals, Inc. was merged with Sun Pharmaceutical Industries, Inc w.e.f. March 31, 2024.
+With effect from December 21, 2023, Sun Pharmaceuticals SA (Pty) Ltd has been dissolved.
+With effect from March 20, 2024, Foundation for Pharmaceutical Academy for Global Excellence has been incorporated
+limited by guarantee. The company is not considered for consolidation since it can apply its income only for charitable
+purposes and no distribution is permissible.
+With effect from August 15, 2023 Concert Pharma U.K. Limited has been dissolved.
+p.
+O.
+n.
+m.
+I.
+With effect from July 14, 2023 Concert Pharmaceuticals Securities Corp. has been dissolved.
+k.
+Concert Pharmaceuticals, Inc. merged with Sun Pharmaceutical Industries, Inc. w.e.f. March 31, 2023
+j.
+Foliage Merger Sub, Inc. merged with Concert Pharmaceuticals, Inc. w.e.f. March 06, 2023
+1)
+255
+Claims against the Group not acknowledged as debts
+574.9
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+On April 08, 2022, our U.S. subsidiaries, Taro U.S.A. and SPIINC, each entered into settlement agreements that resolve
+the above-referenced civil antitrust matter with the Direct Purchaser Plaintiffs class ("DPPS") without any admission of
+guilt or violation of any statute, law, rule or regulation, or of any liability or wrongdoing, pursuant to which Taro U.S.A.
+paid USD 59.7 Million, and SPIINC paid USD 15.3 Million (equivalent to 1,151.8 Million). These amounts do not include
+The U.S.-filed cases were filed in or were transferred to the U.S. District Court for the Eastern District of Pennsylvania
+for coordinated pre-trial proceedings. The court designated five complaints, including one Attorneys General complaint
+and four complaints filed by two putative classes, as "bellwethers" to begin the sequencing of proceedings; discovery is
+complete as to the bellwethers and the parties are now in expert discovery and class certification proceedings. In May
+2023 and March 2024, the court issued orders revising prior deadlines and setting schedules as to the class and Attorney
+General bellwethers, respectively, across 2023 and 2024, including related to discovery and motions practice. In April
+2024, the Attorneys General bellwether complaint and two other Attorneys General complaints were transferred from
+the Eastern District of Pennsylvania to the District of Connecticut in which the complaints were originally filed; the
+Attorneys General cases are proceeding in parallel to the cases remaining in the Eastern District of Pennsylvania.
+SPIINC, Taro Pharmaceutical Industries Ltd. ("Taro Industries”) and its subsidiaries, along with more than 70 other
+pharmaceutical companies and individuals, are named as defendants in lawsuits brought by several putative classes, state
+Attorneys Generals, municipalities, and individual company purchasers and payors, alleging violations of the antitrust and
+related laws in the U.S. and Canada.
+Antitrust - Gx Drug Price Fixing Litigation:
+78.48%
+Legal proceedings:
+V)
+Note: Includes interest till the date of demand, wherever applicable.
+91.0
+400.2
+IV) Other matters
+124.5
+3,474.2
+3,474.2
+Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit
+enjoyed by the Group
+III)
+132.8
+ESIC contribution on account of applicability
+32,180.2
+138.1
+2,362.7
+1,909.5
+Goods and Service tax/Excise duty/service tax on account of valuation/cenvat credit/
+custom duty
+84.5
+Sales tax on account of rebate/classification
+37,488.8
+Income tax on account of disallowances/additions (Company appeals)
+Liabilities disputed - appeals filed with respect to:
+II)
+499.6
+78.48%
+Germany
+78.48%
+74.
+75.
+Sun Pharmaceuticals Holdings USA, Inc.
+Zenotech Inc
+Country of Incorporation
+United States of America
+Morocco
+Ukraine
+India
+Russia
+United States of America
+United States of America
+Effective ownership for the year ended
+March 31, 2024 March 31, 2023
+67.50%
+67.50%
+100.00%
+JSC Biosintez
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+100.00%
+76. Zenotech Farmaceutica Do Brasil Ltda
+Brazil
+68.84%
+(Refer note f)
+45.69%
+68.84%
+(Refer note f)
+(Refer note f)
+100.00%
+73.
+Sun Pharmaceutical Medicare Limited
+72.
+1.2
+28,830,352
+68.
+Ohm Laboratories, Inc.
+United Kingdom
+100.00%
+100.00%
+Ranbaxy Inc.
+Ranbaxy (Thailand) Co., Ltd.
+United States of America
+100.00%
+100.00%
+Thailand
+United States of America
+100.00%
+100.00%
+100.00%
+100.00%
+Patient First. Always.
+252
+Corporate Overview Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+69.
+70.
+Ranbaxy Signature LLC
+Sun Pharmaceuticals Morocco LLC
+71.
+Ranbaxy Pharmaceuticals Ukraine LLC
+45.69%
+(Refer note f)
+77.
+Sun Pharma Distributors Limited
+India
+78.48%
+78.48%
+85.
+The Proactiv Company KK
+86.
+Alchemee Skincare Corporation (Formely known as The Proactiv
+Japan
+Canada
+78.48%
+78.48%
+78.48%
+78.48%
+Company Corporation)
+87. Foliage Merger Sub, Inc.
+88. Concert Pharmaceuticals, Inc.
+United States of America
+(Refer note i)
+United States of America
+89. Concert Pharmaceuticals Securities Corp.
+United States of America
+(Refer note j)
+100.00%
+(Refer note k)
+90. Concert Pharma U.K. Ltd
+United Kingdom
+100.00%
+(Refer note I)
+91.
+Concert Pharma Ireland Limited
+Ireland
+100.00%
+Japan
+28,830,352
+Proactiv YK
+78.48%
+100.00%
+100.00%
+78.
+Realstone Infra Limited
+India
+100.00%
+100.00%
+79.
+Sun Pharmaceuticals (EZ) Limited
+Bangladesh
+72.49%
+72.49%
+80.
+Sun Pharma (Shanghai) Co.,Ltd
+China
+100.00%
+100.00%
+81.
+Sun Pharma Japan Technical Operations Limited
+Japan
+100.00%
+100.00%
+82. Alchemee, LLC
+United States of America
+78.48%
+83.
+The Proactiv Company Holdings, Inc. (Formerly known as Galderma
+Holdings, Inc.)
+United States of America
+78.48%
+84.
+100.00%
+1.2
+8,840,280
+61,253.7
+297.2
+15,133.8
+1,190.7
+2,918.1
+Amortised cost
+As at March 31, 2024
+Fair value through other
+comprehensive income
+Fair value through
+profit or loss
+in Million
+22,257.1
+599.1
+Year ended
+March 31, 2023
+in Million
+Year ended
+March 31, 2024
+30,424.8
+498.9
+Interest accrued
+43,859.4
+3,078.5
+Trade payables
+Borrowings
+Financial liabilities
+Total
+Derivatives not designated as hedges
+Other financial assets
+Share application money pending allotment
+Unbilled revenue
+Derivatives designated as hedges
+Refund due from government authorities
+Interest accrued on investments / balances with banks
+Bank balances other than cash and cash equivalents
+Cash and cash equivalents
+Security deposits
+Lease liabilities
+18,100.2
+458.6
+200.1
+112,493.7
+773.4
+12.50%
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+1,062.8
+104,211.5
+125.2
+Total
+Other financial liabilities
+9,987.8
+Payables to employee
+125.2
+Derivatives designated as hedges
+3,638.5
+Payable on purchase of property, plant and equipment and other intangible
+assets
+69.8
+Security deposits
+113.5
+Unpaid dividends
+69.4
+56,533.0
+4,279.8
+28,456.9
+228,361.2
+94,899.8
+234.6
+51,281.3
+108.7
+58.1
+2,489.4
+114.9
+6,145.1
+427.3
+12,350.3
+92,856.5
+Trade receivables
+Loans to employees/others
+Loans to related party
+Others quoted
+20,865
+0.0
+20,865
+Flamboyawer Finance Private Limited
+0.0
+199,465
+(0.0)
+0.0
+100,000
+Kumud S. Shanghvi
+S. Shanghvi and Dilip S. Shanghvi are Trustees)
+0.1
+1,276,774
+0.1
+1,276,774
+Shanghvi Family & Friends Benefit Trust (Kumud
+0.1
+2,822,427
+0.1
+2,822,427
+Vidhi D. Shanghvi
+0.1
+2,877,280
+0.1
+2,877,280
+Aalok D. Shanghvi
+0.4
+8,840,280
+0.4
+0.0
+Vibha D. Shanghvi
+Sanghvi Properties Private Limited
+0.0
+Venture funds - unquoted
+Mutual funds - unquoted
+Equity instruments - unquoted
+Bonds/debentures - quoted
+Equity instruments - quoted
+Investments
+Financial assets
+NOTE: 43 CATEGORIES OF FINANCIAL INSTRUMENTS
+Capital
+Revenue, net (excluding depreciation) (Refer note 37)
+NOTE: 42 RESEARCH AND DEVELOPMENT EXPENDITURE
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+258
+Patient First. Always.
+Change in shareholding during the year represents the transfer of 99,465 shares from Mrs. Kumud S. Shanghvi to Dilip
+Shantilal Shanghvi.
+0.4
+10,400,850
+0.4
+10,400,850
+Unimed Investments Limited
+0.0
+14,362
+0.0
+14,362
+Gujarat Sun Pharmaceutical Industries Private
+Limited
+0.0
+15,479
+15,479
+Canada
+92. Sun Pharma New Milford Parent LLC
+100.00%
+60.
+96.81%
+96.81%
+Romania
+SC Terapia SA
+58.
+100.00%
+100.00%
+Poland
+57. Ranbaxy (Poland) SP. Z O.O.
+100.00%
+100.00%
+Peru
+59. AO Ranbaxy
+56. Sun Pharmaceutical Industries S.A.C.
+100.00%
+Italy
+55. Sun Pharma Italia srl
+100.00%
+100.00%
+54. Basics GmbH
+100.00%
+100.00%
+Egypt
+53. Rexcel Egypt LLC
+100.00%
+100.00%
+Egypt
+100.00%
+Ranbaxy South Africa (Pty) Ltd
+61. Ranbaxy Pharmaceuticals (Pty) Ltd
+62. Sonke Pharmaceuticals Proprietary Limited
+Taro Industries and two of its former officers are named as defendants in a putative shareholder class action litigation
+pending in the U.S. District Court for the Southern District of New York, which asserts claims under Section 10(b) of the
+Securities Exchange Act of 1934 (the "Exchange Act") against all defendants and claims under Section 20(a) of the Exchange
+Act against the individual defendants. The lawsuit generally alleges that the defendants made material misstatements and
+omissions in connection with an alleged conspiracy to fix drug prices. On September 24, 2018, the court granted in part and
+denied in part the defendants' motion to dismiss. On April 10, 2024, the parties executed a settlement agreement, in which
+Taro agreed to pay $ 36 million, which was fully covered by insurance. A motion for preliminary approval of the settlement
+was filed with the court on April 15, 2024, and on May 8, 2024, the court entered its order granting preliminary approval.
+The final approving hearing is scheduled for August 23, 2024.
+Speakes v. Taro Pharmaceutical Industries Ltd.:
+class members that opted out of the settlement. Both Taro's and SPIINC's settlements with the DPPs were approved by
+the Court on March 10, 2023, and both payments were timely made. Discovery in the End Payor and state Attorneys
+General cases is ongoing. There also is a case arising from the same alleged antitrust conduct pending in Canada,
+brought against SPIINC and its affiliates. After being dormant for some time, in 2023, plaintiffs filed their certification
+application. Defendants' responding materials are due in July 2024.
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+67.
+66.
+Sun Pharma Holdings UK Limited
+65.
+100.00%
+100.00%
+United Kingdom
+100.00%
+100.00%
+Spain
+70.00%
+70.00%
+South Africa
+100.00%
+100.00%
+South Africa
+100.00%
+100.00%
+South Africa
+100.00%
+100.00%
+Russia
+64. Sun Pharma UK Limited
+63. Sun Pharma Laboratorios, S.L.U.
+Sun Pharma Egypt LLC
+52.
+100.00%
+100.00%
+44.
+(Refer note o)
+100.00%
+United States of America
+43. Dusa Pharmaceuticals, Inc.
+78.48%
+78.48%
+United States of America
+78.48%
+78.48%
+United States of America
+One Commerce Drive LLC
+42.
+3 Skyline LLC
+41.
+78.48%
+78.48%
+Israel
+78.48%
+78.48%
+Netherlands
+West Indies
+78.48%
+78.48%
+Cayman Islands, British
+78.48%
+78.48%
+United States of America
+78.48%
+2 Independence Way LLC
+Taro Industries Shareholders Litigation in Israel:
+United States of America
+100.00%
+Canada
+Sun Pharma Canada Inc.
+51.
+100.00%
+100.00%
+100.00%
+100.00%
+Australia
+Brazil
+Ranbaxy Farmaceutica Ltda.
+50.
+Sun Pharma ANZ Pty Ltd
+49.
+100.00%
+100.00%
+United States of America
+PI Real Estate Ventures, LLC
+48.
+100.00%
+100.00%
+99.99%
+99.99%
+100.00%
+100.00%
+India
+Switzerland
+Kenya
+47. Sun Pharma East Africa Limited
+Sun Pharma Switzerland Ltd.
+46.
+Universal Enterprises Private Limited
+45.
+100.00%
+United States of America
+On June 22, 2020, a motion seeking documents before filing a shareholder derivative action was filed by a single
+shareholder against Taro Industries and Taro U.S.A. in the Haifa District Court related to alleged U.S. antitrust
+violations. On September 22, 2020, a subsequent motion seeking documents was filed by a single shareholder against
+Taro Industries related to alleged misreporting to U.S. Medicaid and three prior state settlements. Both motions were
+consolidated on February 16, 2021, and remain pending before the Haifa District Court. The Proceedings against Taro
+Industries and Taro U.S.A. have been stayed by the Haifa District Court thus far, pending the parties providing required
+status updates regarding the related U.S. litigation to the Haifa District Court at upcoming scheduled status hearings.
+SPIINC is a defendant in the National Prescription Opiate Litigation that has been consolidated for pre-trial proceedings in
+the U.S. District Court for the Northern District of Ohio, three additional federal court cases, and 35 cases pending in New
+York federal court (in which remand motions are pending). Separately, the parent company and Sun Pharma Canada Inc.
+are defendants in putative consumer class actions pending in provinces in Canada, as well as a government action brought
+on behalf of all federal, provincial, and territorial governments. These U.S. and Canadian matters involve similar allegations
+and were brought against various manufacturers and distributors of opioid products seeking damages for alleged harms
+related to opioid use or, in the case of the Canadian government action, recovery of historical healthcare costs. Currently,
+all matters against SPIINC in the National Prescription Opiate Litigation are stayed. In 2023, in the Utah state court cases,
+SPIINC settled with the plaintiffs, agreeing to pay USD 0.4 Million, which was fully covered by insurance. The Canadian
+actions are in preliminary stages. The certification motion in the Quebec class action was heard in late-2022, and, in
+early-2024, the court authorised the action against the majority of defendants. The certification motion in the government
+class action was heard at the end of 2023, and the parties still are awaiting the court's decision. SPIINC, the parent
+company, and Ranbaxy were also named as defendants in two individual personal injury complaints filed in West Virginia
+state court in March 2022, which were consolidated with other similar cases before the West Virginia Mass Litigation
+Panel. In April 2023, the court granted all defendants' motions to dismiss.
+1.7
+40,153,960
+Sudhir V. Valia
+Aditya Medisales Limited
+40.3
+9.6
+230,285,690
+967,051,732
+40.3
+967,051,732
+% Change
+during the year
+% of holding
+Number of
+shares
+% Change
+during the year
+0.0
+40,153,960
+9.6
+Shanghvi Finance Private Limited
+Dilip Shantilal Shanghvi
+% of holding
+Number of
+shares
+Equity shares held by promoters / members of
+promoter group / person acting in concert
+As at March 31, 2023
+As at March 31, 2024
+40.3
+9.6
+% of holding
+967,051,732
+230,285,690
+As at March 31, 2023
+Number of shares
+967,051,732
+230,385,155
+9.6
+230,385,155
+1.7
+14,345,019
+0.6
+100.00%
+93.
+Sun Pharma Housatonic LLC
+United States of America
+100.00%
+100.00%
+94.
+Sun Pharma Housatonic II LLC
+United States of America
+100.00%
+100.00%
+98.
+95. Sun Pharma Housatonic III LLC
+96. Sun Pharma Middle East FZE LLC
+97. Libra Merger Ltd
+Taro Pharma Corporation, Inc.
+Name of Joint Venture Entity
+100. Artes Biotechnology GmbH
+Name of Associates
+101. Medinstill LLC
+102. Generic Solar Power LLP
+United States of America
+100.00%
+100.00%
+United Arab Emirates
+100.00%
+Raksha S. Valia
+0.6
+14,345,019
+40.3
+% of holding
+Number of shares
+As at March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+* in Million
+As at
+March 31, 2023
+1,667.5
+March 31, 2024
+1,682.3
+As at
+B) Guarantees given by the bankers on behalf of the Group
+* Income tax matters where department has preferred an appeal against favourable orders received by the Company amounted to 31,560.5
+Million (March 31, 2023: 34,445.0 Million). These matters are sub-judice in various forums and pertains to various financial years.
+Future cash outflows in respect of the above matters are determinable only on receipt of judgements / decisions
+pending at various forums / authorities.
+Note:
+On January 19, 2023, the Company signed a definitive agreement to acquire Concert Pharmaceuticals, Inc. ("Concert")
+and completed the transaction on March 06, 2023, Concert later merged into Sun Pharmaceutical Industries, Inc.
+("SPIINC") on March 31, 2023. Prior to the acquisition, Concert was involved in patent-related litigation with Incyte
+Corporation ("Incyte”), both in the U.S. and Europe, in which Incyte challenged certain of Concert's patents before
+the U.S. Patent Trial and Appeal Board ("PTAB") and the European Patent Office, respectively (the "Concert Patent
+Litigation"). Concert Patent Litigation matters are pending on appeal in the U.S. and the EPO.
+Incyte litigation:
+The Company may now be subject to "follow-on" claims in national courts of some countries in Europe. The Company
+has been served with a claim in the England & Wales, with the National Health Service ("NHS") as the Claimant,
+relating to the delayed entry of generic citalopram. The NHS's damages case is based upon the premise that, but for
+the anticompetitive behavior, the NHS would have been able to buy cheaper generic alternatives of citalopram, rather
+than paying Lundbeck (another co-defendant) the full innovator price. The Company is currently seeking for the claim
+to be struck out on the basis that the Claimants brought the claim out of time, and a preliminary issues hearing took
+place on April 24, 2024, to determine the issue. The parties are awaiting the outcome of that hearing. At this stage it is
+also unclear how many claims will actually be made in practice in other countries. Accordingly, at this early stage, the
+Company is unable to estimate the potential liability which may arise on account of follow-on claims. The Company
+also believes, based on its internal assessment and that of its independent legal counsel, that it has favorable legal
+arguments in terms of defending the relevant claim and any other potential future damages claims.
+By judgement dated 25 March 2021, the CJEU (highest European court) upheld the fine against Ranbaxy (U.K.) Limited
+and Ranbaxy Laboratories Limited in full and ruled that a settlement agreement between Ranbaxy and Lundbeck (and
+the other agreements between Lundbeck and the other defendants in the case) had been anticompetitive.
+Citalopram follow damages claim in the UK:
+On March 6, 2024, an FDA Citizen Petition was filed alleging the presence of benzene in benzoyl peroxide products
+("BPO"), including Proactiv and Taro products. Thereafter, numerous lawsuits were filed against BPO manufacturers
+and sellers. All are "economic harm" class actions; no plaintiff has claimed physical injury. To date, six lawsuits have
+named Alchemee, LLC as defendant and five of those cases also have named Taro entities. The lawsuits are in their
+early stages.
+BPO Litigation:
+In June 2020, the parent company and certain of its subsidiaries were named as defendants in a complaint filed in the
+Zantac/Ranitidine Multi-District Litigation ("MDL") consolidated in the U.S. District Court for the Southern District of
+Florida. The lawsuits name over 100 defendants, including brand manufacturers, generic manufacturers, repackagers,
+distributors, and retailers, involving allegations of injury caused by nitrosamine impurities. On July 08, 2021, the court
+granted the generic Defendants' motion to dismiss with prejudice. That decision is on appeal. In addition to the federal
+court proceedings, the parent company and two of its affiliates were also named as defendants in state court actions
+pending in Pennsylvania, and California (actions previously pending in New York state court were voluntarily dismissed,
+and actions previously pending in Illinois state court were dismissed on the pleadings). Finally, certain of the parent
+company's subsidiaries were named in various putative class actions pending in three Canadian provinces. The action
+pending in British Columbia is taking the lead and, in May 2023, the court in that action granted defendants' motion to
+strike and denied plaintiffs' motion for class certification.
+Product Liability - Ranitidine/Zantac MDL:
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+256
+Patient First. Always.
+The parent company and certain of its subsidiaries were named as defendants in a number of putative class action
+lawsuits and individual actions brought by purchasers and payors in the U.S. alleging that the subsidiaries violated
+antitrust laws in connection with a 2008 patent litigation settlement agreement with Pfizer concerning generic Lipitor
+(Atorvastatin). The cases have been transferred to the U.S. District Court for the District of New Jersey for coordinated
+pre-trial proceedings. Discovery commenced in January 2020 but was stayed in March 2020 pending mediation.
+Pursuant to the mediator's order of June 03, 2021, mediation briefing and oral argument on certain issues were
+completed in March 2022. Limited discovery as to certain issues resumed in July 2022. Briefing for class certification
+and summary judgement motions were completed in 2023. In late-November 2023, the court held argument on
+defendants' summary judgement motion and plaintiffs' class certification motions. Currently, the court has yet to
+issue a decision on either motion. There also was an antitrust case pending in West Virginia state court that mirrored
+the allegations in the federal case. In that case, by agreement of the parties Sun settled all claims against it, without
+any admissions, in the amount of USD 8.25 Million. The parties are in the process of finalising the written settlement
+agreement documentation.
+Antitrust - Lipitor:
+for the year ended March 31, 2024
+Opioids:
+NOTE: 40 COMMITMENTS
+As at
+Dilip Shantilal Shanghvi
+Shanghvi Finance Private Limited
+Name of Shareholders
+iii. Equity shares held by each shareholder holding more than 5 percent equity shares in the Parent Company are as follows:
+2,399.3
+in Million
+2,399.3
+Year ended March 31, 2023
+Number of shares
+2,399,334,970
+2,399,334,970
+in Million
+2,399.3
+2,399.3
+Year ended March 31, 2024
+Number of shares
+2,399,334,970
+2,399,334,970
+Closing balance
+Opening balance
+Reconciliation of the number of equity shares and amount outstanding at the beginning and at the end of reporting period
+ii.
+The equity shares of the Parent Company, having par value of 1 per share, rank pari passu in all respects including
+voting rights and entitlement to dividend.
+Rights, preferences and restrictions attached to equity shares
+i.
+NOTE: 41 DISCLOSURES RELATING TO SHARE CAPITAL
+* The Group is committed to pay milestone payments on certain contracts, however, obligation to pay is contingent upon fulfilment of contractual
+obligation by parties to the contract.
+1,531.9
+744.8
+5,310.6
+III) Letters of credit for imports
+35,413.0
+1,472.7
+11,708.7
+Estimated amount of contracts remaining to be executed on capital account (net of advances) *
+II) Investment related commitments
+1)
+March 31, 2023
+March 31, 2024
+in Million
+As at
+257
+12.50%
+78.48%
+Reclassified as an investment in associates due to increased ownership
+4,149.3
+746.8
+Year ended
+March 31, 2024
+Recoveries/reversals/write-offs / foreign exchange fluctuation
+Addition
+Balance at the beginning of the year
+Movement in the expected credit loss allowance on trade receivables
+Trade receivables from parties are non-interest bearing and are generally on terms of 7 to 120 days.
+As at March 31, 2024 is 108.7 Million (March 31, 2023: 291.1 Million)
+Unbilled revenue
+** 43,657/-
+118,534.4
+1,277.8
+267.5
+2,238.3
+1,821.5
+13,109.9
+99,819.4
+credit impaired
+305.5
+277.5
+4.1
+23.8
+*0.0
+0.1
+(iii) Disputed trade receivables -
+(838.0)
+3,843.8
+4,058.1
+March 31, 2023
+Other financial liabilities
+Trade payables
+Lease liabilities
+Borrowings
+Non derivatives
+Derivatives
+Other financial liabilities
+Trade payables
+Lease liabilities
+Borrowings
+Non derivatives
+The table below provides details regarding the contractual maturities of significant financial liabilities:
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+The Group has unutilised working capital lines from banks of 88,642.1 Million as on March 31, 2024
+(March 31, 2023: 70,770.9 Million).
+Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group
+manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
+due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Group's reputation.
+Liquidity risk
+Other than Trade receivables, the Group has recognised an allowance of 1,481.6 Million (March 31, 2023: ₹ 1,466.1 Million)
+against past due loans including interest and 500.0 Million (March 31, 2023: 500.0 Million) of other receivables based on
+assessment regarding its future recoverability.
+4,149.3
+(1,191.0)
+4,766.2
+574.1
+in Million
+Year ended
+Derivatives
+845.6
+1,324.4
+(iv) Disputed trade receivables -
+credit impaired
+considered good
+160.7
+20.4
+27.9
+112.4
+(iii) Disputed trade receivables -
+3,544.2
+730.4
+98.9
+1,967.9
+362.1
+311.3
+73.6
+(ii) Undisputed trade receivables -
+credit impaired
+31, 2024
+112,333.0
+As at March
+in Million
+More than
+3 years
+200.0
+2-3 years
+212.3
+1,307.6
+1-2 years
+6 months
+-1 year
+1,163.0
+14,012.6
+95,437.5
+39.3
+131.2
+45.5
+31.5
+642.3
+768.3
+132.0
+in Million
+As at March
+31, 2023
+114,385.1
+154.7
+3 years
+2-3 years
+132.2
+1-2 years
+890.1
+More than
+6 months
+-1 year
+1,179.2
+Less than
+6 months
+12,341.5
+99,687.4
+Not due
+(ii) Undisputed trade receivables -
+credit impaired
+(i) Undisputed trade receivables -
+considered good
+Trade receivables ageing
+116,551.8
+1,235.0
+342.7
+3,388.9
+1,598.5
+14,475.6
+95,511.1
+513.9
+304.6
+93.0
+263
+* in Million
+Less than 1 year
+in Million
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+264
+Patient First. Always.
+32,875.5
+24,458.9
+5.4
+5.4
+445.6
+445.6
+148.6
+3,451.9
+28,824.0
+148.6
+3,451.9
+20,407.4
+Payables
+8,416.6
+8,416.6
+Borrowings
+Financial liabilities
+117,651.5
+3,799.5
+121,451.0
+8,550.0
+8,550.0
+Russian
+3,188.9
+299.2
+3,488.1
+As at March 31, 2023
+South
+Euro
+Borrowings
+Payables
+Financial liabilities
+106,347.3
+9,336.1
+3,261.6
+3,147.9
+4,516.8
+101,830.5
+9,336.1
+2,877.4
+384.2
+3,147.9
+4,710.6
+296.8
+5,007.4
+6,347.2
+79,247.1
+1,116.2
+2,719.6
+Cash and cash equivalents
+5,231.0
+76,527.5
+Receivables
+Financial assets
+Total
+Brazilian
+Real
+Japanese
+Yen
+Ruble African Rand
+US Dollar
+5,764.8
+5,764.8
+4,821.1
+308.1
+5,129.2
+56,815.2
+6,879.9
+4,092.8
+1,506.3
+61,978.8
+61,978.8
+1,280.8
+Total
+As at March 31, 2023
+1-3 years More than 3 years
+Less than 1 year
+in Million
+104,211.5
+125.2
+1,303.5
+1,732.7
+101,175.3
+125.2
+14,941.8
+14,941.8
+56,533.0
+56,533.0
+4,279.8
+28,456.9
+13.3
+1,290.2
+1,732.7
+28,443.6
+1,256.9
+Total
+As at March 31, 2024
+1-3 years More than 3 years
+56,815.2
+15,353.5
+15,353.5
+135,428.3
+577.4
+8,735.1
+89,783.8
+1,161.8
+2,030.4
+Cash and cash equivalents
+7,573.3
+87,753.4
+Receivables
+Financial assets
+Total
+Brazilian
+Real
+Japanese
+Yen
+(i) Undisputed trade receivables -
+considered good
+As at March 31, 2024
+Russian
+South
+Ruble African Rand
+US Dollar
+in Million
+Significant foreign currency risk exposure relating to trade receivables, cash and cash equivalents, borrowings and
+trade payables
+(a)
+The Group's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses (primarily
+in US Dollar, Euro, South African Rand, Japanese Yen, Brazilian Real and Russian Ruble) and foreign currency borrowings
+(primarily in US Dollar). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the
+Group's revenues and expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate
+between the Indian rupee and these foreign currencies has changed substantially in recent periods and may continue to
+fluctuate substantially in the future. Consequently, the Group uses both derivative and non-derivative financial instruments,
+such as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial
+liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted
+transactions and recognised assets and liabilities.
+Foreign exchange risk
+Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
+market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of
+market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to
+all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term
+debt. The Group is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market
+value of its investments. Thus, the Group's exposure to market risk is a function of investing and borrowing activities and
+revenue generating and operating activities in foreign currencies.
+Market risk
+615.3
+141,027.4
+4,092.8
+1,506.3
+37.9
+Euro
+9,166.5
+Less than
+6 months
+Trade receivables ageing
+Financial assets and liabilities measured at fair value on a recurring basis at the end of each reporting period
+NOTE: 44 FAIR VALUE HIERARCHY
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+260
+Patient First. Always.
+141,027.4
+582.1
+33.2
+33.2
+10,207.7
+1,668.2
+582.1
+3,045.0
+111.4
+104.3
+216.9
+56,815.2
+6,879.9
+61,978.8
+181,660.4
+93,335.4
+177.3
+51,274.0
+3,129.7
+in Million
+291.1
+57.5
+Level 1
+Level 3
+Derivatives designated as hedges
+Financial liabilities
+3,215.3
+3,428.0
+139,537.8
+Total
+114.9
+234.6
+Derivatives not designated as hedges
+Derivatives designated as hedges
+18,100.2
+Others quoted
+3,078.5
+Venture funds - unquoted
+61,253.7
+43,859.4
+2,918.1
+297.2
+15,133.8
+1,190.7
+unquoted
+Mutual funds
+Bonds/debentures - quoted
+#
+Equity instruments - unquoted
+Equity instruments - unquoted
+Equity instruments - quoted
+Equity instruments - quoted #
+Financial assets
+Investments
+As at March 31, 2024
+Level 2
+Total
+25.1
+325.0
+Financial liabilities
+Total
+Derivatives not designated as hedges
+Other financial assets
+Share application money pending allotment
+Unbilled revenue
+Derivatives designated as hedges
+Refund due from government authorities
+Interest accrued on investments / balances with banks
+Bank balances other than cash and cash equivalents
+Cash and cash equivalents
+Security deposits
+Trade receivables
+Loans to employees/others
+Loans to related party
+Others quoted
+Equity instruments - unquoted
+Bonds/debentures - quoted
+Mutual funds - unquoted
+Venture funds - unquoted
+Equity instruments - quoted
+Investments
+Financial assets
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Borrowings
+4,307.9
+Lease liabilities
+Interest accrued
+11,465.6
+46,237.3
+1,041.9
+172.9
+114,385.1
+246.4
+24,390.5
+Amortised cost
+in Million
+259
+44,377.4
+5,079.8
+60,285.8
+406.2
+8,227.8
+1,313.7
+325.8
+As at March 31, 2023
+Fair value through other
+comprehensive income
+Fair value through
+profit or loss
+Total
+Derivatives not designated as hedges
+Other financial liabilities
+Payables to employee
+Derivatives designated as hedges
+intangible assets
+Payable on purchase of property, plant and equipment and other
+Security deposits
+Unpaid dividends
+Trade payables
+125.2
+125.2
+Financial assets
+Level 1
+March 31, 2023
+March 31, 2024
+32,736.7
+636,667.5
+0.05
+As at
+As at
+in Million
+Dividends not recognised at the end of the reporting period
+(c)
+Dividends are net of waiver, wherever applicable.
+(year ended March 31, 2023: 7.5) per fully paid share
+Interim dividend for the year ended March 31, 2024 of * 8.5
+(year ended March 31, 2022: 3.0) per fully paid share
+Final dividend for the year ended March 31, 2023 of * 4.0
+Dividend on equity shares
+(b) Dividend on equity shares paid during the year
+Debt to total equity ratio
+Total equity, including reserves
+Debt (includes borrowings and lease liabilities)
+(a) Debt equity ratio
+The Group monitors capital on the basis of the carrying amount of debt as presented in the consolidated financial
+statements. The Group's objective for capital management is to maintain an optimum overall financial structure.
+- to provide an adequate return to shareholders through optimisation of debts and equity balance.
+732.0
+3,215.3
+21.4
+(85.7)
+(80.0)
+68,858.7
+96.1
+559,953.8
+Year ended
+March 31, 2024
+Financial assets for which loss allowances is measured using the expected credit loss
+The Group has used expected credit loss (ECL) model for assessing the impairment loss. For this purpose, the Group uses a
+provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal
+risk factors and historical data of credit losses from various customers.
+Trade receivables
+The Group limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have
+a good credit rating. The Group does not expect any significant losses from non-performance by these counter-parties, and
+does not have any significant concentration of exposures to specific industry sectors or specific country risks.
+Investments
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+262
+Patient First. Always.
+Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
+contractual obligations and arises principally from the Group's receivables from customers, loans and investments. Credit
+risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
+counterparty to which the Group grants credit terms in the normal course of business.
+Credit risk
+The Group's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Group's
+risk management assessment and policies and processes are established to identify and analyse the risks faced by the Group,
+to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and
+management policies and processes are reviewed regularly to reflect changes in market conditions and the Group's activities.
+NOTE: 46 FINANCIAL RISK MANAGEMENT
+This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and hence
+not recognised as liability.
+The Board of Directors at it's meeting held on May 22, 2024 have recommended payment of final dividend of 5.0
+per share of face value of 1 each for the year ended March 31, 2024. The same amounts to ₹ 11,996.7 Million.
+2.
+1.
+17,995.0
+19,384.3
+7,198.0
+9,597.3
+Year ended
+March 31, 2023
+* in Million
+0.12
+2,649.0
+614.5
+732.0
+Derivatives designated as hedges
+732.0
+5,282.2
+138,595.2
+25.1
+177.3
+24,390.5
+5,079.8
+Financial liabilities
+Total
+Derivatives not designated as hedges
+Derivatives designated as hedges
+quoted
+Venture funds - unquoted
+Others
+44,377.4
+Mutual funds - unquoted
+60,285.8
+Bonds/debentures - quoted
+325.8
+406.2
+#
+8,227.8
+1,313.7
+Equity instruments - quoted #
+Equity instruments - quoted
+Equity instruments - unquoted
+Equity instruments - unquoted
+Investments
+Level 3
+As at March 31, 2023
+Level 2
+in Million
+Derivatives not designated as hedges
+Total
+582.1
+33.2
+in Million
+Year ended
+March 31, 2023
+261
+Year ended
+March 31, 2024
+- to ensure the Group's ability to continue as a going concern; and
+The Group's capital management objectives are:
+NOTE: 45 CAPITAL MANAGEMENT
+Balance at the end of the year
+Fair value changes and foreign exchange fluctuations
+Purchases
+Balance at the beginning of the year
+Unlisted shares valued at fair value
+Reconciliation of Level 3 fair value measurements
+Not due
+for the year ended March 31, 2024
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost
+approximates their fair value.
+There were no transfers between Level 1 and 2 in the periods.
+# These investments in equity instruments are not held for trading. Upon the application of Ind AS 109, the Company has chosen to designate these
+investments in equity instruments at fair value through other comprehensive income.
+The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair
+value. The cost of unquoted investments approximates the fair value because there is wide range of possible fair value
+measurements and the costs represents estimate of fair value within that range.
+Level 3 inputs are unobservable inputs for the assets or liabilities.
+Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the assets or liabilities,
+either directly or indirectly.
+Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
+the measurement date.
+615.3
+Notes to the Consolidated Financial Statements
+1,026.6
+Balance at the end of the year
+57,458.4
+66,624.9
+Expenses that are allowed on payment basis
+Deferred tax assets
+2023
+during the year *
+year*
+2022
+March 31,
+Closing
+balance
+in Million
+Taken over on
+acquisition
+income movement
+during the
+April 01,
+comprehensive
+movement
+Other
+Profit/(loss)
+Opening
+balance
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+268
+Patient First. Always.
+41,036.5
+14,618.5
+230.7
+(4,052.2)
+10,526.1
+3,240.4
+MAT credit entitlement
+44,078.6
+2,850.8
+(139.5)
+2,451.7
+38,915.6
+4,917.6
+(99.3)
+145.8
+4,871.1
+Others
+1,926.5
+(143.6)
+2,070.1
+Intangible assets
+11,594.9
+4,219.8
+7,375.1
+Inventory and other related items
+15,113.5
+2,850.8
+2,281.9
+9,980.8
+Unabsorbed depreciation / carried forward losses
+(40.2)
+7,083.5
+5,616.6
+367.5
+19,668.1
+1,763.3
+(163.2)
+1,926.5
+Intangible assets
+16,585.2
+4,990.3
+11,594.9
+Inventory and other related items
+13,411.0
+(1,702.5)
+15,113.5
+Unabsorbed depreciation / carried forward losses
+9,914.9
+241.5
+(852.7)
+10,526.1
+Expenses that are allowed on payment basis
+Deferred tax assets
+31, 2024
+March
+Closing
+balance
+in Million
+(543.9)
+8,475.9
+acquisition
+during the year*
+Others
+35,189.2
+4,917.6
+(35.2)
+(24.4)
+479.2
+19,213.3
+(24.4)
+(142.2)
+534.1
+Others
+19,300.6
+621.4
+18,679.2
+Difference between written down value of
+property, plant and equipment, capital work-in-
+progress and intangible assets under development
+as per books of accounts and income tax
+Less: Deferred tax liabilities
+60,704.6
+206.3
+6,095.8
+54,402.5
+13,819.0
+3,495.1
+10,323.9
+MAT credit entitlement
+46,885.6
+206.3
+2,600.7
+44,078.6
+5,211.2
+328.8
+10,323.9
+42,156.0
+9,535.2
+2,867.5
+Closing balance
+March 31, 2023
+*in Million
+393.2
+2,474.3
+Other comprehensive
+income movement
+during the year*
+the year
+Profit/(loss)
+movement during
+Opening balance
+April 01, 2022
+Difference between written down value of
+property, plant and equipment and capital
+work-in-progress as per books of accounts
+and income tax and others
+Deferred tax liabilities
+1,550.6
+71.7
+89.8
+1,182.7
+(38.8)
+316.9
+(2,478.9)
+2,550.6
+(1,878.4)
+1,878.4
+MAT credit entitlement
+71.7
+(600.5)
+672.2
+2,474.3
+62.7
+393.2
+Less: Deferred tax assets
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+* Movement during the year includes foreign currency translation difference amounting to ₹ 156.9 Million (March 31, 2023: ₹ 1,563.2 Million)
+316.9
+14.0
+(15.7)
+2,550.6
+(14.0)
+408.9
+2,155.7
+318.6
+1,878.4
+311.8
+1,566.6
+MAT credit entitlement
+672.2
+(14.0)
+97.1
+589.1
+220.4
+61.2
+159.2
+451.8
+(14.0)
+35.9
+429.9
+Expenses that are allowed on payment basis
+Others
+2,867.5
+(157.7)
+220.4
+9.0
+Deferred tax liabilities
+(ii) Deferred tax liabilities (Net)
+35,189.2
+(5,028.7)
+(41.7)
+11,763.8
+28,495.8
+19,213.3
+7,879.5
+(97.8)
+(2,228.6)
+13,660.2
+534.1
+(97.8)
+(916.8)
+1,548.7
+18,679.2
+7,879.5
+(1,311.8)
+12,111.5
+Difference between written down value of
+property, plant and equipment, capital work-in-
+progress and intangible assets under development
+as per books of accounts and income tax
+Others
+Less: Deferred tax liabilities
+54,402.5
+2,850.8
+(139.5)
+Difference between written down value of
+property, plant and equipment and capital
+work-in-progress as per books of accounts
+and income tax and others
+Difference in carrying value and tax base of
+investments
+Less: Deferred tax assets
+Opening
+(442.8)
+451.8
+Expenses that are allowed on payment basis
+Others
+1,622.3
+89.8
+1,182.7
+(2,517.7)
+2,867.5
+1,182.7
+1,182.7
+439.6
+31, 2024
+year*
+balance March
+89.8
+(2,517.7)
+2,867.5
+acquisition
+over on
+income movement
+during the year *
+movement
+during the year*
+01, 2023
+balance April
+10,193.1
+Other comprehensive
+Profit/(loss)
+in Million
+Closing
+01, 2023
+Taken
+Taken
+over on
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+266
+Patient First. Always.
+Exposure to market risk with respect to commodity prices primarily arises from the Group's purchases and sales of
+active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients.
+These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the
+Group's raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the
+Group's active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest
+portion of the Group's cost of revenues. Commodity price risk exposure is evaluated and managed through operating
+procedures and sourcing policies. As of March 31, 2024, the Group had not entered into any material derivative
+contracts to hedge exposure to fluctuations in commodity prices.
+Commodity rate risk
+For the year ended March 31, 2024 and March 31, 2023, every 50 basis point decrease in the floating interest
+rate component applicable on its closing balance of loans and borrowings would increase the Group's profit by
+approximately 142.2 Million and 297.9 Million respectively. A 50 basis point increase in floating interest rate
+would have led to an equal but opposite effect.
+The Group has loan facilities on floating interest rate, which exposes the Group to risk of changes in interest rates. The
+Group monitors the interest rate movement and manages the interest rate risk by evaluating interest rate swaps etc.
+based on the market / risk perception.
+Interest rate risk
+USD 16.7
+USD 400.0
+USD 400.0
+Sold USD
+USD/INR
+USD
+Interest rate swaps (Floating to fixed)
+Currency swaps
+USD 75.0
+USD 75.0
+Sold USD
+USD/INR
+Forward contracts
+EUR 9.0
+EUR 9.0
+Sold EUR
+for the year ended March 31, 2024
+EUR/USD
+NOTE: 47 Goodwill (Net):
+Goodwill acquired in business combination is allocated, at acquisition, to the cash generating units (CGUs) that are
+expected to benefit from that business combination. The carrying amount of goodwill has been allocated as follows:
+21,885.8
+22,209.4
+16,395.8
+16,649.7
+126.6
+113.3
+352.9
+363.8
+12,543.7
+30,206.5
+30,681.8
+12,708.5
+Sun Pharmaceutical Industries Limited
+Zenotech Laboratories Limited
+Basics GmbH
+Ranbaxy Farmaceutica Ltda.
+SC Terapia SA
+Taro Pharmaceutical Industries Ltd.
+Sun Pharma Japan Ltd.
+Sun Farmaceutica do Brasil Ltda.
+Sun Pharmaceutical Industries, Inc. - Concert
+Sun Pharmaceutical Industries, Inc.
+Goodwill in respect of:
+in Million
+As at
+March 31, 2023
+March 31, 2024
+As at
+(i)
+Forward contracts
+GBP 5.0
+GBP 7.5
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and
+liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in the consolidated statement
+of profit and loss. The changes in fair value of the forward contracts and option contracts, as well as the foreign exchange
+gains and losses relating to the monetary items, are recognised in the consolidated statement of profit and loss.
+In respect of the aforesaid hedges of highly probable forecasted transactions, the Group has recorded a net gain of
+* 314.2 Million for the year ended March 31, 2024 and net loss of 529.6 Million for the year ended March 31, 2023 in
+other comprehensive income. The Group also recorded hedges as a component of revenue, net gain of 223.6 Million
+for year ended March 31, 2024 and net loss of ₹1,076.9 Million for year ended March 31, 2023 on occurrence of
+forecasted sale transaction.
+The Group designates its derivative contracts that hedge foreign exchange risk associated with its highly probable
+forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow
+hedges is recorded as in other comprehensive income, and re-classified in the income statement as revenue in the
+period corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow
+hedges is immediately recorded in the consolidated statement of profit and loss.
+Hedges of highly probable forecasted transactions
+The Group is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily
+in US Dollar, Euro, South African Rand, Japanese Yen, Brazilian Real and Russian Ruble and foreign currency debt is
+primarily in US Dollar. The Group uses foreign currency forward contracts, foreign currency option contracts, interest
+rate swap and currency swap contracts (collectively, "derivatives") to mitigate its risk of changes in foreign currency
+exchange rates. The counterparty for these contracts is generally a bank or a financial institution.
+Derivative contracts
+In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the
+exposure at the end of the reporting period does not reflect the exposure during the year.
+For the years ended March 31, 2024 and March 31, 2023 every 5% strengthening of the Indian rupee against foreign
+currencies for the above mentioned financial assets/liabilities would decrease Group's profit and Group's equity by
+approximately 4,428.8 Million and approximately 1,732.2 Million respectively. A 5% weakening of the Indian rupee
+and the respective major currencies would lead to an equal but opposite effect.
+(c)
+(b) Sensitivity
+71,704.2
+6.4
+61,511.1
+6.4
+1,086.3
+2,112.9
+154.1
+154.1
+148.3
+148.3
+2,657.6
+2,657.6
+income movement
+The following table gives details in respect of the notional amount of outstanding foreign exchange
+derivative contracts:
+265
+Hedge Type
+As at
+Sold GBP
+GBP/USD
+Forward contracts
+Derivatives not designated as hedges
+AUD 18.9
+JPY 1,666.7
+USD 8.2
+USD 52.3
+Bought JPY
+USD/JPY
+Currency swaps
+AUD 16.2
+Bought AUD
+461.5
+USD/AUD
+USD 485.0
+USD 34.8
+Sold USD
+Sold USD
+Bought USD
+AUD/USD
+Forward contracts
+USD/INR
+USD/NIS
+Forward contracts
+Forward contracts
+Derivatives designated as hedges
+Amount in Million
+As at
+March 31, 2023
+March 31, 2024
+Sold/Bought
+Currency / Pair
+USD 486.0
+454.7
+Forward contracts
+410.9
+Effect of income that is exempt from tax
+(14,389.9)
+(16,329.8)
+Effect of deduction claimed under chapter VI A of Income Tax Act, 1961
+32,876.8
+38,745.5
+34.944%
+34.944%
+94,084.3
+110,878.9
+Income tax expense calculated at corporate tax rate
+Income tax rate in India (%)
+Profit before tax
+Reconciliation of tax expense
+Year ended
+March 31, 2023
+Year ended
+March 31, 2024
+in Million
+Tax reconciliation
+NOTE: 49 INCOME TAXES
+NOTE: 48 Disclosures mandated by the Companies Act, 2013 Schedule III Part II by way of additional information is given
+in Annexure 'A'.
+267
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+(44.8)
+Corporate Overview
+(116.1)
+1,671.9
+comprehensive
+413.3
+Other
+during the
+April
+movement
+balance
+Profit/(loss)
+Opening
+289.3
+14,394.5
+Deferred tax assets (Net)
+(i)
+NOTE: 50 DEFERRED TAX
+Income tax expense recognised in consolidated statement of profit and loss
+Effect of reversal/creation of Minimum Alternate Tax (MAT) credit entitlement
+Others
+3,159.4
+7,359.9
+9,435.0
+1,681.3
+(3,216.7)
+(21,268.2)
+(18,956.9)
+(358.4)
+Effect of incremental deduction allowed on account of research and development costs and other allowances
+Effect of unused tax losses and tax offsets not recognised as deferred tax assets (net)
+Effect of difference between Indian and foreign tax rates and non taxable subsidiaries
+Tax payable under Minimum Alternate Tax (MAT)
+2,985.8
+Effect of expenses that are not deductible
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(109.8)
+83,580.3
+Total (A-B)
+Total (B)
+Ranbaxy (Malaysia) SDN. BHD.
+Ranbaxy Nigeria Limited
+Sun Pharmaceutical Industries Limited
+Alkaloida Chemical Company Zrt.
+Capital reserve in respect of:
+Less:
+84,887.2
+87,262.7
+Total (A)
+1,186.8
+Vivaldis Health and Foods Private Limited
+1.0
+Sun Pharmaceutical Medicare Limited
+233.3
+197.7
+JSC Biosintez
+3.2
+3.1
+Ranbaxy South Africa (Pty) Ltd
+1,677.4
+1,677.4
+The carrying amount of goodwill is stated above. The recoverable amounts have been determined based on value in use
+calculations which uses cash flow projections covering a period of five years (which are based on key assumptions such
+as expected growth rates based on past experience, margins and Management's expectations / extrapolation of normal
+increase / steady terminal growth rate) and appropriate discount rates that reflects current market assessments of time
+value of money and risks specific to these investments. The cash flow projections includes estimates for five years
+developed using internal forecasts and terminal growth rate thereafter. The planning horizon reflects the assumptions
+for short to mid-term market developments. The average growth rate used in extrapolating cash flows beyond the
+planning period ranged from (8.0%) to 5.5% for March 31, 2024 [March 31, 2023 (5.0%) to 8.0%]. Discount rate reflects
+the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated on the
+weighted average cost of capital for respective CGU or group of CGUs. Discount rate used ranged from 5.3% to 13.0%
+for March 31, 2024 [March 31, 2023 5.5% to 13.2%]. The discount rate considered for the Company's operation in the
+United States ranges from 5.6% to 7.7% for March 31, 2024 [March 31, 2023 5.5% to 8.3%] and for SC Terapia SA has
+been considered at 8.0% [March 31, 2023 9.3%]. The management believes that any reasonable possible change in key
+assumptions on which recoverable amount is based is not expected to cause the aggregate carrying amount to exceed
+the aggregate recoverable amount of the cash generating unit.
+595.4
+(ii) Below is the reconciliation of the carrying amount of goodwill:
+1,171.8
+1.0
+1.8
+5,371.8
+(209.8)
+1,206.6
+85,989.5
+1,222.4
+65,912.8
+12,505.5
+Year ended
+March 31, 2023
+in Million
+1,186.8
+83,580.3
+Year ended
+March 31, 2024
+Add/ (less): Foreign currency translation difference
+Closing balance
+Add/ (less): Impairment
+595.4
+Add/ (less): Acquisition during the year (Refer note 78)
+27.5
+1.8
+27.5
+72.1
+1,273.2
+71.0
+85,989.5
+83,580.3
+Opening balance
+1,306.9
+Corporate Overview Statutory Reports
+for the year ended March 31, 2024
+Defined benefit plan
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+(a)
+272
+40.1
+1.3
+1.6
+47.2
+1,280.7
+71.3
+76.7
+1,477.8
+Patient First. Always.
+Gratuity
+The parent company and its Indian subsidiaries have undertaken an obligation to provide financial support towards
+education expenses of the children of those employees who have lost their lives due to the COVID-19 pandemic.
+(b) Pension fund
+Contribution to Labour Welfare Fund
+Financial Statements
+Consolidated
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as
+at the year end using the 'Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating
+to defined benefit obligation are recognised in other comprehensive income whereas gains and losses in respect of
+other long term employee benefit plans are recognised in the consolidated statement of profit and loss.
+Actuarial valuation for compensated absences is done as at the year end and the provision is made as per the parent
+company and Indian subsidiaries rules with corresponding charge to the consolidated statement of profit and loss
+amounting to 957.0 Million (March 31, 2023: 347.6 Million) and it covers all regular employees. Major drivers in
+actuarial assumptions, typically, are years of service and employee compensation.
+Other long term benefit plan
+(iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best
+estimate of the mortality of plan participants both during and after their employment. An increase in the life
+expectancy of the plan participants will increase the plan's liability.
+In respect of Gratuity, a defined benefit plan, contributions are made to LIC's Recognised Group Gratuity Fund Scheme.
+It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to specific benefit
+at the time of retirement or termination of the employment on completion of five years or death while in employment.
+The level of benefit provided depends on the member's length of service and salary at the time of retirement/
+termination age. Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year
+end. Each year, the parent company and Indian subsidiaries review the level of funding in gratuity fund. The parent
+company and Indian subsidiaries decides its contribution based on the results of its annual review. The parent company
+and Indian subsidiaries aim to keep annual contributions relatively stable at a level such that the fund assets meets the
+requirements of gratuity payments in short to medium term.
+(ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially
+offset by an increase in the return on the plan's debt investments.
+(i)
+Corporate Overview
+These plans typically expose the parent company and its Indian subsidiaries to actuarial risks such as: investment risk,
+interest rate risk, longevity risk and salary risk.
+Risks
+Statutory Reports
+(c) COVID-19 Employee children education support
+The parent company has an obligation towards pension, a defined benefit retirement plan, with respect to certain
+employees, who had already retired before March 01, 2013, will continue to receive the pension as per the
+pension plan.
+Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate
+determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual
+return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by
+investment in LIC managed fund.
+(iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries
+of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
+Foreign currency translation difference
+Contribution to Superannuation Fund
+Balance at end of the year
+140.1
+(45.7)
+(6.2)
+(0.1)
+(1,346.2)
+(1,600.8)
+332.4
+369.8
+1,121.3
+7.1
+Notes to the Consolidated Financial Statements
+3,495.6
+(453.2)
+(2,499.0)
+4,279.8
+Contribution to ESIC and Employees Deposit Linked Insurance (EDLI)
+6,879.9
+in Million
+Contribution to Provident Fund and Family Pension Fund
+Year ended
+March 31, 2023
+in Million
+Year ended
+March 31, 2024
+Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Corporation
+(ESIC) and other Funds which covers all regular employees of the parent company and Indian subsidiaries. While the
+employees and the parent company and Indian subsidiaries make predetermined contributions to the Provident Fund and
+ESIC, contribution to the Family Pension Fund and other statutory funds are made only by the parent company and Indian
+subsidiaries. The contributions are normally based on a certain percentage of the employee's salary. Amount recognised as
+expense in respect of these defined contribution plans, aggregate to ₹1,603.3 Million (March 31, 2023: 1,393.4 Million).
+NOTE: 55 EMPLOYEE BENEFITS
+Defined contribution plan
+(d) The Company has given certain premises under operating lease or leave and license agreements. These are generally
+not non-cancellable and periods range between 11 months to 3 years under leave and license/lease and are renewable
+by mutual consent on mutually agreeable terms. The Company has received refundable interest free security deposits
+where applicable in accordance with the agreed terms.
+5,393.5
+1,674.1
+3,958.1
+March 31, 2023
+March 31, 2024
+1,566.0
+3,338.2
+1,176.8
+Later than one year and not later than five years
+Later than five years
+Less than one year
+As at
+As at
+The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted basis:
+for the year ended March 31, 2024
+571.6
+in Million
+Interest cost
+639.0
+Current service cost
+5,537.3
+92.5 1,072.2
+6,224.9
+1,017.8
+83.4
+Obligations as at the beginning of the year
+Reconciliation of defined benefit obligations
+(66.4) 24.4
+(102.0)
+(66.4) (77.6)
+(13.4)
+701.7
+(4.1)
+(6.8)
+6.2
+Expense/(income) charged to other comprehensive income
+76.0
+6.3
+- due to change in demographic assumptions
+(18.2)
+Year ended
+March 31, 2023
+3,596.1
+Actuarial (gains)/losses on obligations
+(282.0)
+(61.9)
+(2.0)
+(463.1)
+(61.2)
+(4.0)
+Benefits paid
+5.7
+Taken over on acquisition
+373.6
+73.9
+465.0
+273
+146.0
+555.7
+639.0
+Expense charged to the consolidated statement of
+profit and loss
+Expected return on plan assets
+Interest cost
+Current service cost
+and loss (Refer note 34)
+Expense recognised in the consolidated statement of profit
+Gratuity
+(Funded)
+Year ended March 31, 2023
+Pension
+Fund
+Education
+(Unfunded) (Unfunded)
+Gratuity
+(Funded)
+COVID-19
+Pension
+Education
+Fund
+(Unfunded) (Unfunded)
+COVID-19
+Year ended March 31, 2024
+571.6
+(13.4)
+6.2
+465.0
+(4.1)
+(6.8)
+Actuarial loss/(gain) on defined benefit obligation
+Actuarial loss/(gain) on plan assets
+Remeasurement of defined benefit obligation recognised in
+other comprehensive income
+633.9
+73.9
+6.3
+718.3
+76.0
+6.2
+(311.3)
+(385.7)
+373.6
+73.9
+6.3
+76.0
+6,879.9
+1,168.6
+39.9
+Payment towards lease liabilities
+in Million
+Rest of the world
+Emerging markets
+United States of America
+India
+Revenue by Geography
+The reportable segments derives their revenues from the sale of pharmaceuticals products (generics, specialty, API, etc.). The
+CODM reviews revenue as the performance indicator. The measurement of each segment's revenues, expenses and assets is
+consistent with the accounting policies that are used in preparation of the Group's consolidated financial statements.
+Rest of the world
+4.
+Emerging markets
+3.
+United States of America
+2.
+The Chief Operating Decision Maker ('CODM') evaluates the Group's performance and allocates resources based on an
+analysis of various performance indicators by reportable segments. The Group's reportable segments are as follows:
+1. India
+35.3
+Year ended
+March 31, 2024
+39.9
+Year ended
+March 31, 2023
+141,624.1
+Non-current assets by geography in the below table includes property, plant and equipment, capital work-in-progress,
+other intangible assets, intangible assets under development and other non-current assets
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+270
+Patient First. Always.
+432,788.7
+477,584.5
+65,827.0
+72,345.3
+85,633.3
+92,415.5
+139,704.3
+158,856.1
+153,967.6
+India
+35.3
+1.0
+31,551.7
+86,881.2
+60,244.0
+in Million
+As at
+March 31, 2023
+March 31, 2024
+As at
+Unused tax credits (MAT credit entitlement)
+Unabsorbed depreciation
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated
+269
+for the year ended March 31, 2024
+26.8
+Notes to the Consolidated Financial Statements
+35,346.2
+1.0
+3,744.4
+2,580.9
+2,399,334,970
+84,735.8
+Year ended
+March 31, 2023
+95,763.8
+2,399,334,970
+Year ended
+March 31, 2024
+NOTE: 52 SEGMENT REPORTING
+Diluted earnings per share (in)
+Basic earnings per share (in ₹)
+Face value per share (in *)
+Weighted average number of shares used in computing basic and diluted earnings per share
+Profit for the year (in Million) - used as numerator for calculating earnings per share
+NOTE: 51 EARNINGS PER SHARE
+The unused tax credits will expire in financial year 2024-25 and unused tax losses will expire from financial year 2024-25 to 2042-43.
+However, in case of certain overseas subsidiaries there is no expiry period for tax losses and unused tax credits.
+Deductible temporary differences
+3,367.9
+15,220.4
+Reclassified to held for sale
+United States of America
+Emerging markets
+As at
+The performance obligation is satisfied when control of the goods or services are transferred to the customers based on the
+contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
+Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
+revenue received from customer for which performance obligation has not yet been completed.
+Contract balances of Trade receivables, Contract assets and Contract liabilities as at April 01, 2022 were 104,845.9 Million,
+382.3 Million and 8,117.6 Million respectively.
+7,265.9
+6,152.8
+114,385.1
+291.1
+112,493.7
+108.7
+in Million
+As at
+March 31, 2023
+As at
+March 31, 2024
+4,942.4
+432,788.7
+427,846.3
+Year ended
+March 31, 2023
+in Million
+471,304.5
+6,280.0
+477,584.5
+Year ended
+March 31, 2024
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Contract liabilities
+Corporate Overview
+Financial Statements
+Consolidated
+Interest expense on lease liability
+Taken over on acquisition
+Deletions
+Additions
+Balance as at beginning of the year
+Year ended
+March 31, 2024
+in Million
+(c)
+(b) The following is the movement of lease liabilities
+The Company has recognised a lease liability measured at the present value of the remaining lease payments, and
+right-of-use (ROU) asset at an amount equal to lease liability (adjusted for any related prepayments). Management has
+exercised judgement in determining whether extension and termination options are reasonably certain to be exercised.
+Expenses related to short term leases and low-value assets for the year ended March 31, 2024 is 212.5 Million
+(March 31, 2023: 263.5 Million).
+(a)
+NOTE: 54 LEASES
+271
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Statutory Reports
+Rest of the world
+Contract assets
+Contract balances
+NOTE: 53 REVENUE FROM CONTRACTS WITH CUSTOMERS
+No customer contributed more than 10.0% of total revenues for the year ended March 31, 2024 and March 31, 2023.
+In view of the interwoven/intermix nature of business and manufacturing facility, other segmental information is not ascertainable.
+210,529.4
+204,402.4
+17,789.7
+21,707.5
+13,584.5
+13,235.7
+55,633.3
+56,595.0
+123,521.9
+112,864.2
+in Million
+As at
+March 31, 2023
+March 31, 2024
+The Company has recorded an additional amount of 237.5 Million (March 31, 2023: 641.2 Million) as deferred revenue
+pursuant to the requirements of Ind AS 115 and an amount of Nil (March 31, 2023: 622.2 Million) has been taken over
+on acquisition. Revenue of ₹1,383.2 Million (March 31, 2023: 2,241.3 Million) has been recognised as Revenue from
+contract with customer pursuant to completion of performance obligation in respect of the above contracts.
+Trade receivables
+The reconciling items of revenue recognised in the consolidated statement of profit and loss with the contracted price are
+as follows:
+Provision for sales return
+Sale of service/others
+Sale of products
+Disaggregation of Revenue from contract with customers:
+(9,392.1)
+432,788.7
+477,584.5
+(303,621.2)
+(246,558.7)
+(294,229.1)
+(242,184.1)
+(4,374.6)
+Year ended
+March 31, 2024
+724,143.2
+in Million
+Year ended
+March 31, 2023
+736,409.9
+Revenue from contracts with customers
+Chargebacks, Rebates, discounts and others
+Revenue as per contracted price, net of returns
+Less:
+- due to change in financial assumptions
+7.7
+23.1
+in Million
+In respect of any present obligation as a result of a past event that could lead to a probable outflow of resources, provision
+has been made, which would be required to settle the obligation. The said provisions are made as per the best estimate
+of the management and disclosure as per Ind AS 37 - "Provisions, Contingent Liabilities and Contingent Assets" has been
+given below:
+NOTE: 60
+The Group does not have any material associates or joint venture warranting a disclosure in respect of individual associate
+or joint venture. The Group's share of other comprehensive income is Nil (March 31, 2023: Nil) in respect of such
+associates and joint venture. The unrecognised share of loss is Nil (March 31, 2023: Nil) in respect of such associates and
+joint venture.
+NOTE: 59
+Expenditure related to Corporate Social Responsibility (CSR) as per Section 135 of the Companies Act, 2013 read with
+Schedule VII thereof: 1,167.0 Million (March 31,2023: 853.6 Million).
+NOTE: 58
+NOTE: 57 RELATED PARTY DISCLOSURES (IND AS-24) - AS PER ANNEXURE ‘B'.
+On January 17, 2024, Sun Pharmaceutical Industries Ltd. ("Sun Pharma") entered into an Agreement of Merger (the "Merger
+Agreement") with Alkaloida Chemical Company Zrt. ("Alkaloida"), Sun Pharma Holdings ("SPH"), The Taro Development
+Corporation ("TDC"), Libra Merger Ltd. (the "Merger Sub") and Taro Pharmaceutical Industries Ltd. ("Taro”) in which Sun
+Pharma, Taro's controlling shareholder, agreed to acquire all of the outstanding ordinary shares of Taro other than the
+shares already held by Sun Pharma or its affiliates for USD 43.00 per share in cash without interest. Pursuant to the Merger
+Agreement, Merger Sub will merge with and into Taro, with Taro surviving and becoming an indirect wholly-owned subsidiary
+of Sun Pharma (the "Merger”). Sun Pharma, Alkaloida, TDC, and SPH expect to fund the aggregate merger consideration and all
+related fees and expenses with cash or cash equivalents on hand. Consummation of the Merger is subject to various customary
+conditions, including obtaining certain regulatory approval and the approval of the Merger Agreement and the Merger by Taro's
+shareholders at the extraordinary shareholders meeting to be held on May 22, 2024. If the Merger is completed, Taro would
+become a privately held company and its shares would no longer be listed on the NYSE.
+NOTE: 56
+The Group also has certain other defined benefits plans in various geographies. However, since they are not material,
+individual disclosures have not been made.
+In the United States, the Company sponsors a defined contribution 401(k) retirement savings plan for all eligible
+employees who meet minimum age and service requirements. The Company has no further obligations under the plan
+beyond its annual matching contributions.
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+275
+Opening balance
+Financial Statements
+Consolidated
+Add: Provision for the year
+Less: Utilisation/settlement/reversal
+(A) Exceptional items of ₹4,943.2 Million for year ended March 31, 2024 includes:
+NOTE: 61
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+276
+Patient First. Always.
+* Includes provision for trade commitments, discounts, rebates, price reductions, product returns, chargeback, medicaids, contingency provision
+and clawback.
+(95,399.3)
+4,513.1
+49,008.3
+87,462.1
+52,432.4
+Year ended
+March 31, 2023*
+Year ended
+March 31, 2024*
+49,008.3
+51,013.0
+10.3
+(53,484.7)
+338.5
+46,885.4
+Closing balance (Also Refer note 61)
+Add/(less): Foreign currency translation difference
+Add: Taken over on acquisition
+(a) Charge of 1,492.1 Million towards impairment of an acquired intangible asset under development.
+Statutory Reports
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+6.8
+94.4 906.5
+95.7 853.4
+5.6
+940.6
+96.3
+6.4
+155.7 1,081.1
+5.8
+1,413.4
+156.6
+5.3
+Insurer managed funds (Funded with LIC, break-up not available)
+The major categories of plan assets are as under:
+5th year
+Thereafter
+94.0
+Corporate Overview
+765.8
+92.3
+The contribution expected to be made by the parent company and its Indian subsidiaries for gratuity during financial
+year ending March 31, 2025 is 2,605.7 Million (March 31, 2024: 1,611.0 Million).
+5,164.8
+5,471.0
+683.4
+6,749.3
+1,686.0
+102.7
+90.1
+7.6
+90.0 797.4
+1,620.5 7,889.1
+88.8
+8.1
+732.5
+92.1
+8.2
+841.9
+7.2
+4th year
+(b) Foreign exchange loss of ₹2,013.5 Million pertaining to Ranbaxy Nigeria Limited on account of devaluation of
+Naira against US Dollar subsequent to changes in Nigerian Foreign exchange market regulations and methodology
+by the Central Bank of Nigeria and FMDQ exchange respectively.
+(d) The Company's subsidiary Ranbaxy, Inc., and its former subsidiaries Ranbaxy Pharmaceuticals, Inc. and Ranbaxy
+Laboratories Limited (collectively, "Ranbaxy"), were named as defendants in a lawsuit brought by the State of
+West Virginia alleging that Ranbaxy violated West Virginia antitrust and consumer protection laws in connection
+with a 2008 patent litigation settlement agreement with Pfizer concerning generic Lipitor (Atorvastatin). The case
+was pending in the Circuit Court of Mason County, West Virginia. The parties conducted limited fact discovery
+and served expert disclosures, and the case was scheduled to begin trial on December 11, 2023. With a view to
+resolve this dispute and avoid uncertainty, Ranbaxy and the State of West Virginia executed a binding term sheet
+embodying a comprehensive settlement for an amount of USD 8.39 Million (equivalent to 698.1 Million) including
+legal costs. The definitive settlement agreement will make clear that Ranbaxy denies each and every one of the
+allegations against it and has not conceded or admitted any liability.
+NOTE: 68 LOANS/ADVANCES DUE FROM AN ASSOCIATE
+NOTE: 67 DETAILS OF SECURITIES FOR CURRENT BORROWINGS ARE AS UNDER:
+Borrowings/debt availed by subsidiaries are usually supported by the letter of awareness issued by the parent company.
+(i) The Company has Unsecured loan from others of 13.3 Million (March 31, 2023: Nil) comprising of loan
+taken by Vivaldis Health and Foods Private Limited (Vivaldis). The Company has acquired 60.11% in Vivaldis on
+May 11, 2023. The unsecured loan carries interest rate of 9.00% and is to be repaid by March 2028.
+Term loan from others:
+B.
+1,369.5 Million) and (b) loan of JPY Nil (March 31, 2023: JPY 1,666.7
+Million) equivalent to Nil (March 31, 2023: 1,026.7 Million). The terms of repayment for borrowings were as follows:
+(a) The loan was taken on August 29, 2019 and was repayable in 3 equal instalments of USD 16.67 Million each.
+The first instalment of USD 16.67 Million was repaid during the year 2021-22. Second instalment of USD 16.67
+Million was repaid on August 29, 2022 and last instalment of USD 16.67 Million has been paid during the year.
+(b) The loan was taken on August 29, 2019 and was repayable in 3 equal instalments of JPY 1,667 Million each.
+The first instalment of JPY 1,667 Million was repaid during the year 2021-22. Second instalment of JPY 1,667
+Million was repaid on August 29, 2022 and last instalment of JPY 1,667 Million has been paid during the year.
+The Company has not defaulted on repayment of loan and interest payment thereon during the year.
+The aforementioned unsecured ECBs were availed from bank in different currencies.
+The Company has Unsecured External Commercial Borrowings (ECBs) of (a) USD Nil (March 31, 2023: USD 16.7
+Million) equivalent to Nil (March 31, 2023:
+(i)
+Unsecured
+A. Term loan from banks:
+NOTE: 66 DETAILS OF LONG-TERM BORROWINGS AND CURRENT MATURITIES OF LONG-TERM DEBT
+[INCLUDED UNDER SHORT TERM BORROWINGS ]
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+Interest bearing with specified repayment schedule:
+278
+Medinstill LLC and its subsidiaries (Refer note 57)
+Credit impaired
+(iii) Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have
+been recognised are attributable to the following:
+246.4
+458.6
+(1,354.9)
+(1,369.1)
+246.4
+1,354.9
+1,369.1
+458.6
+March 31, 2023
+March 31, 2024
+in Million
+As at
+As at
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Loans have been granted to the above entity for the purpose of its business.
+Less: Allowance for credit impaired
+Considered good
+(c) Impact of relocation of Alchemee operations from California to New York and consequent one time transitional
+expenses amounting to USD 6.2 Million (equivalent to 507.4 Million).
+Patient First. Always.
+The parent company and its Indian subsidiaries have not been declared wilful defaulter by any bank or financial
+institution or government or any other government authorities.
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+In December 2023, FDA inspected Sun Pharma's Dadra facility and has subsequently determined the inspection
+classification status of this facility as Official Action Indicated (OAI). The Company is in communication with FDA to
+resolve the inspectional observations that resulted in OAI status.
+(c)
+(b) In September 2013, FDA placed Sun Pharma's Mohali facility on Import Alert; the site was also subjected to certain
+provisions of the Consent Decree of Permanent Injunction entered against Ranbaxy Laboratories Ltd. in January 2012.
+(Ranbaxy Laboratories Ltd. was merged with Sun Pharma in March 2015). In March 2017, FDA removed the Import
+Alert on Mohali facility and indicated that the site was in substantial compliance with the current Good Manufacturing
+Practice ("cGMP") provisions mentioned in the Consent Decree. In August 2022, FDA inspected the Mohali facility,
+and the inspection was classified as OAI. Subsequently, in April 2023, FDA issued a Consent Decree Correspondence/
+Non-Compliance letter to the Mohali facility in which FDA directed the Company to take certain corrective actions at
+the Mohali facility, and certain actions before releasing finished drug product batches into the United States. These
+actions include, but are not limited to, retaining an independent cGMP expert to conduct batch certifications of drug
+products manufactured at the Mohali facility for shipment to the U.S. market.
+In May 2022, FDA inspected Sun Pharma's Halol facility, and the inspection was classified as Official Action Indicated
+("OAI") in August 2022. Subsequently, in December 2022, FDA placed the Halol facility on Import Alert 66-40;
+however, subject to certain conditions, certain Halol-manufactured finished drug products were exempted from
+the Import Alert. The Company is taking all corrective measures necessary to address the observations; and is in
+communication with the FDA regarding the same.
+Income of 573.7 Million relating to a claim pertaining to the acquisition of a subsidiary in an earlier year settled
+during the year ended March 31, 2023.
+(a)
+NOTE: 62
+(c)
+(b) Concert acquisition related expenses of 643.9 Million incurred during the year ended March 31, 2023.
+Impairment charge on account of impairment of loans and advances given to an associate amounting to
+*1,644.3 Million pursuant to assessment of recoverability.
+(a)
+(B) Exceptional items of ₹1,714.5 Million for the year ended March 31, 2023 includes:
+(e) The Company has incurred a one-time cost of 232.1 Million in relation to restructuring of operations in Japan.
+Statutory Reports
+No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
+sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
+("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
+whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
+on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
+Ultimate Beneficiaries. However, the Company, as a part of its treasury operations, invests/advances loans to fund
+the operations of its subsidiaries/associates/joint venture which have further utilised these funds for their general
+corporate purposes/working capital, etc. within the consolidated group of the Company and in the ordinary course of
+business. These transactions are done on an arms length basis following a due approval process.
+Financial Statements
+Consolidated
+for the year ended March 31, 2024
+(g)
+(f)
+(e) The parent company and its Indian subsidiaries has not been sanctioned working capital limits from banks or financial
+institutions during any point of time of the year on the basis of security of current assets.
+(d) The parent company and its Indian subsidiaries do not have any transaction which is not recorded in the books of
+accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income
+Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
+The Group has not granted any loans or advances in the nature of loans to promoters, directors, and KMPs, either
+severally or jointly with any other person. No trade or other receivable are due from directors either severally or jointly
+with any other person.
+(c)
+(b) The Group has not traded or invested in crypto currency or virtual currency during the financial year.
+(a) No proceeding have been initiated or pending against the parent company and its Indian subsidiaries under the Benami
+Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder.
+NOTE: 65
+The date of implementation of the Code on Wages 2019 and the Code on Social Security, 2020 is yet to be notified by the
+Government. The Company will assess the impact of these Codes and give effect in the consolidated financial statement
+when the Rules/Schemes thereunder are notified.
+NOTE: 64
+The Group has since strengthened its cybersecurity infrastructure and implemented improvements to its cyber and data
+security systems to safeguard against such risks in the future. The Group is also implementing certain long-term measures
+to augment its security controls systems across the organisation. The Group worked with legal counsel across relevant
+jurisdictions to notify applicable regulatory and data protection authorities, where considered required, and the Group
+believes there is no material legal non-compliance by the Group on account of the information security incident. The Group
+believes that all known impacts on its consolidated financial statements on account of this incident have been considered.
+On March 01, 2023, the parent company disclosed an information security incident that impacted some of the Group's IT
+assets. The Group promptly took steps to contain and remediate the impact of the information security incident, including
+employing appropriate containment protocols to mitigate the threat, employing enhanced security measures and utilising
+global cyber security experts to ensure the integrity of the Group's IT systems' infrastructure and data. As part of the
+containment measures, the Group proactively isolated its network and initiated recovery procedures. As a result of these
+measures, certain business operations were also impacted.
+NOTE: 63
+277
+Notes to the Consolidated Financial Statements
+1.2
+year
+2nd year
+(463.1)
+417.4
+529.6
+102.0
+(146.0)
+311.3
+385.7
+4,616.1
+5,164.8
+Gratuity (Funded)
+Year ended
+March 31, 2023
+in Million
+Gratuity (Funded)
+March 31, 2024
+Year ended
+(282.0)
+6,224.9
+(5,164.8)
+1,060.1
+5,471.0
+Patient First. Always.
+Education
+(Unfunded)
+Gratuity
+(Funded)
+COVID-19
+As at March 31, 2023
+in Million
+Pension Fund
+(Unfunded)
+As at March 31, 2024
+(Unfunded)
+Education
+COVID-19
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+274
+5,164.8
+Pension Fund
+(Unfunded)
+1,956.2
+7,427.2
+1,028.5 7,427.2
+78.8
+Obligation as at the year end
+148.9
+(21.9)
+(10.0)
+236.4
+(27.2)
+(8.0)
+due to experience
+-
+(151.3)
+(44.5)
+(3.4)
+337.5
+83.4
+(5,471.0)
+1,017.8
+Reconciliation of liability/(asset) recognised in the consolidated balance sheet
+Gratuity (Funded)
+Gratuity (Funded)
+in Million
+As at
+March 31, 2023
+March 31, 2024
+As at
+Plan assets as at the year end
+Benefits paid
+Employer's contribution during the year
+Actuarial gain/(loss)
+Expected return
+Plan assets as at the beginning of the year
+Reconciliation of plan assets
+Net liability recognised in the consolidated financial statement
+Fair value of plan assets
+Present value of commitments (as per actuarial valuation)
+6,224.9
+3rd
+Gratuity (Funded)
+Discount rate
+Gratuity
+(Funded)
+As at March 31, 2024
+COVID-19 Pension
+Education
+Fund
+(Unfunded) (Unfunded)
+in Million
+Delta effect of +1% change in discount rate
+Impact on defined benefit obligation
+The sensitivity analysis have been determined based on method
+that extrapolates the impact on defined benefit obligation as a
+reasonable change in key assumptions occurring at the end of
+the reporting period.
+Sensitivity analysis:
+58 to 60
+N.A.
+N.A.
+58 to 60
+N.A.
+N.A.
+Retirement age (years)
+to 14.00%
+COVID-19
+Education
+(Unfunded) (Unfunded)
+In range of 11.78%
+As at March 31, 2023
+Pension
+Fund
+Delta effect of -1% change in discount rate
+1st year
+62.3
+97.0
+(56.4)
+(87.1)
+(348.2)
+381.9
+396.4
+67.2
+5.7
+(62.9) (353.9)
+(5.2)
+(62.4) (428.7)
+66.3 482.3
+460.6
+(419.1)
+Delta effect of +1% change in salary escalation rate
+Delta effect of -1% change in salary escalation rate
+Delta effect of +1% change in rate of employee turnover
+Delta effect of -1% change in rate of employee turnover
+Maturity analysis of projected benefit obligation for next
+(4.6)
+5.1
+Gratuity
+(Funded)
+Assumptions:
+Indian Assured Lives
+Mortality (2012-14)
+(2012-14)
+N.A.
+to 7.30%
+assets
+7.45%
+N.A.
+N.A.
+In range of 7.15%
+N.A.
+N.A.
+Expected return on plan
+7.45%
+7.45%
+7.45%
+In range of 7.15%
+to 7.20%
+7.15%
+7.15%
+Expected rate of salary
+Indian Assured
+Lives Mortality
+(2012-14)
+N.A.
+N.A.
+increase
+Indian Assured
+Lives Mortality
+Indian Assured Lives
+Mortality (2012-14)
+Indian Assured Indian Assured
+Lives Mortality Lives Mortality
+(2012-14) (2012-14)
+N.A.
+N.A. In range of 12.26%
+to 25.00%
+Employee turnover
+N.A.
+N.A.
+N.A.
+N.A.
+N.A.
+N.A.
+Interest rate guarantee
+Mortality
+In range of 7.00%
+to 10.50%
+N.A.
+N.A.
+In range of 7.00%
+to 11.25%
+N.A.
+Tax losses (includes capital in nature)
+(0.5)
+Sun Farmaceutica Do Brasil Ltda.
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the parent company, its subsidiaries, associates and joint
+ventures are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company
+eliminations / consolidation adjustments.
+7,922.8
+1.2
+Sun Pharma Distributors Limited
+12.
+61.3
+0.1
+0.4
+0.0
+60.9
+0.1
+1,384.9
+0.2
+Zenotech Laboratories Limited
+11.
+(0.4) (450.8)
+(7.7)
+(0.1)
+(443.1)
+(0.5)
+(3,832.8)
+(0.6)
+Sun Pharmaceutical Medicare Limited
+10.
+2.6
+2,502.3
+(0.8)
+(81.6)
+0.2
+2,523.0
+0.4
+Sun Pharmaceutical (Bangladesh) Limited
+1.
+Foreign
+46.4
+0.0
+46.4
+0.0
+457.2
+(84.9)
+0.1
+14.
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+(0.3)
+(0.0)
+Caraco Pharmaceuticals Private Limited
+13.
+2,420.7
+2.3
+Vivaldis Health and Foods Private Limited
+202.2
+(0.1)
+(0.1)
+Skisen Labs Private Limited
+6.
+0.0
+0.0
+0.0
+0.0
+2.3
+0.0
+Realstone Multitrade Private Limited
+5.
+(32.7)
+(0.0)
+(32.7)
+(0.0)
+5,182.4
+0.8
+Neetnav Real Estate Private Limited
+4.
+0.1
+0.0
+0.1
+0.0
+3.4
+(0.0)
+(0.6)
+(0.0)
+(0.1)
+(290.5)
+(0.0)
+Realstone Infra Limited
+9.
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+5.0
+0.0
+Universal Enterprises Private Limited
+(84.9)
+8.
+0.1
+(0.3)
+(0.0)
+69.2
+0.1
+959.6
+0.1
+Softdeal Pharmaceutical Private Limited
+7.
+(0.1)
+(0.0)
+68.9
+0.0
+0.2
+2.
+0.0
+Sun Pharmaceuticals Germany GmbH
+14.
+53.9
+0.1
+53.9
+0.1
+329.2
+0.0
+Sun Pharmaceutical Industries (Europe) B.V.
+13.
+0.3
+0.0
+0.3
+0.0
+(0.6)
+(0.0)
+Aditya Acquisition Company Ltd.
+12.
+Limited
+(786.6)
+(0.7)
+1,570.4
+74.4
+0.1
+71.2
+0.1
+Sun Laboratories FZE
+18.
+(0.2) (250.7)
+(250.7)
+(0.3)
+1,931.5
+0.3
+Sun Pharma Japan Ltd. (Consolidated with its
+Subsidiary)
+17.
+5.9
+0.0
+1.5
+5.9
+(505.1)
+(0.1)
+Sun Pharma Philippines, Inc.
+16.
+0.0
+0.0
+0.0
+0.0
+Sun Pharmaceuticals SA (Pty) Ltd.
+15.
+71.2
+0.0
+202.2
+6,479.6
+6,105.4
+5.
+2.6
+0.0
+2.6
+0.0
+(192.4)
+(0.0)
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+4.
+(0.0) (48.3)
+(48.3)
+(0.1)
+1,188.7
+0.2
+Sun Pharma De Mexico S.A. DE C.V.
+3.
+439.5
+0.4
+439.5
+0.5
+(2,472.0)
+(0.4)
+Sun Farmaceutica Do Brasil Ltda.
+Sun Pharma De Venezuela, C.A.
+(0.0)
+(0.0)
+6.
+58.6
+(4,743.9)
+(4.5)
+640.0
+0.6
+640.0
+(5.0) (4,743.9)
+0.4 374.2
+1.6 1,570.4
+(0.8) (786.6)
+0.7
+0.4
+2,815.7
+(0.5) (3,320.3)
+14.8 99,379.9
+9.0
+60,717.3
+0.4 2,904.2
+Sun Pharmaceutical Industries (Australia) Pty
+11.
+Alkaloida Chemical Company Zrt.
+6.1
+10.
+9.
+Ranbaxy Nigeria Limited
+8.
+Ranbaxy (Malaysia) SDN. BHD.
+7.
+112.6
+0.1
+112.6
+0.1
+(0.2) (1,486.8)
+Sun Pharma France
+Sun Pharma (Netherlands) B.V
+Faststone Mercantile Company Private Limited
+3.
+44.3 47,023.5
+Property, Plant and equipment
+Inventories
+Other current assets
+Trade receivable
+Cash
+Assets
+As per Ind AS 103 on Business Combination, purchase consideration has been allocated on a provisional basis, pending
+final determination of the fair value of the acquired assets and liabilities. The resulting differential has been accounted
+as goodwill.
+On May 11, 2023, the Group acquired Vivaldis Health and Foods Private Limited ("Vivaldis") for a Cash consideration
+of 1,433.2 Million to acquire 60.11% shareholding with the remaining 39.89% to be acquired in future as per certain
+terms and conditions.
+a.
+NOTE: 78 BUSINESS COMBINATIONS
+N.A.
+in Million
+Relationship with struck
+off company, if any to be
+disclosed
+1.2
+Payables
+March 31, 2023
+March 31, 2024
+As at
+As at
+Nature of transaction with
+Struck off Company
+WSRM Hospitality Private Limited
+Name of the struck off company
+The Group has following transactions and balances with companies which are struck off apart from shares held by 38
+shareholders holding 30,659 shares (March 31, 2023 - 10 shareholders holding 11,889 shares) having face value of 1 per share.
+NOTE: 77 RELATIONSHIP WITH STRUCK OFF COMPANIES
+Intangible assets
+Total Assets
+Liabilities
+Trade payable
+410.6
+177.1
+2.0
+16.0
+16.8
+89.8
+7.1
+1.6
+43.8
+587.7
+357.7
+283
+26.5
+4.7
+103.9
+12.9
+in Million
+Total liabilities
+Income tax liability
+Provisions
+Borrowings
+Deferred tax
+Lease liability
+Other current liability
+82.0
+1,433.2
+for the year ended March 31, 2024
+Financial Statements
+Consolidated
+2-3 years
+1-2 years
+As at
+More than
+Less than
+1 year
+To be completed in
+in Million
+40,004.0
+94.1
+40,098.1
+2,584.8
+1,522.9
+275.9
+35,714.5
+94.1
+March 31, 2023
+More than
+3 years
+2,490.7
+1,522.9
+275.9
+2-3 years
+1-2 years
+Less than
+1 year
+35,714.5
+As at
+in Million
+42,461.5
+3 years March 31, 2024
+154.7
+154.7
+154.7
+154.7
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(e) Income taxes (Refer note 2 (r))
+(d) Contingent consideration (Refer note 2 (c))
+Impairment of goodwill and intangible assets (Refer note 2 (g), (h) and 47)
+(c)
+(b) Revenue (Refer note 2 (n))
+Litigations (Refer note 2 (m) and note 39)
+(a)
+NOTE: 76 USE OF ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
+The preparation of the Group's financial statements requires the management to make judgements, estimates and
+assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
+disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and
+underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
+in which the estimates are revised and in any future periods affected. In particular, information about significant areas of
+estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the
+amounts recognised in the consolidated financial statements is included in the following notes:
+Notes to the Consolidated Financial Statements
+190.7
+0.9
+0.9
+189.8
+189.8
+3 years March 31, 2023
+2-3 years
+1-2 years
+As at
+More than
+Less than
+1 year
+To be completed in
+in Million
+190.7
+1,186.8
+164.3
+Total net identifiable assets at fair value
+As % of
+consolidated
+As % of
+consolidated *in Million
+profit or (loss)
+*in Million
+As % of
+consolidated
+net assets
+2023-24
+2023-24
+2023-24
+Share in total
+comprehensive income (OCI) comprehensive income (TCI)
+Share in other
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+Subsidiaries
+Parent Entity - Sun Pharmaceutical Industries Limited
+No.
+Name of the entity
+S.
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint ventures as per
+Schedule III of Companies Act, 2013:
+(Annexure 'A')
+285
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+*in Million
+2023-24
+As % of
+consolidated in Million
+35.3
+236,944.0
+(243.6)
+3
+(2.3)
+47,267.1
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+49.4
+285,914.3
+42.6
+Sun Pharma Laboratories Limited
+Corporate Overview
+2.
+0.0
+Green Eco Development Centre Limited
+1.
+Indian
+28,442.0
+26.8
+(139.8)
+TCI
+OCI
+(1.3)
+28,581.8
+29.8
+1.2
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 22, 2024
+(DIN: 01951829)
+March 31, 2023'
+47,185.9
+As at
+March 31, 2024
+47,185.9
+represents provisional value
+*
+Goodwill
+Less: Liabilities
+Assets
+Fair value of net identifiable assets acquired:
+Purchase consideration as per Ind AS 103
+* in Million
+As at
+Details of amounts paid and payable, including allocation based on Purchase Price Accounting in accordance with Ind
+AS 103 are summarised below:
+42,778.6
+The acquisition was accounted for as a business combination using the acquisition method of accounting in accordance
+with Ind AS 103 'Business Combinations'. The purchase price was provisionally allocated to the assets acquired and
+liabilities assumed based on the estimated fair values at the date of acquisition. The excess of the purchase price
+over the fair value of the net assets acquired was allocated to goodwill. The Group has completed the purchase price
+allocation during the current year. Adjustments have been made on the finalisation of purchase price allocation and
+previous year's number have been restated accordingly.
+b.
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+284
+Patient First. Always.
+From the date of acquisition, it has contributed revenue of 559.6 Million and profit before tax of 61.2 Million to
+the Group. If the business combinations had taken place at the beginning of the year, the revenue and profit before
+exceptional item and tax of the Group would have been 485,013.3 Million and 115,860.2 Million respectively.
+Hence the figures for the year ended March 31, 2024 are not comparable to the previous year presented.
+Non-controlling interest
+Goodwill
+Total purchase price
+During the year ended March 31, 2023 the Group had acquired Concert Pharmaceuticals, Inc. The business acquisition
+was completed through a tender offer for an upfront payment of USD 8.00 per share of common stock, in cash, or
+USD 576 Million equivalent to 47,185.9 Million in equity value, plus one non-tradeable contingent value right (CVR)
+per share of common stock, which represents their right to receive contingent payments of up to USD 3.50 per share
+of common stock, in cash, upon the achievement of certain milestones prior to December 31, 2029. Accordingly, the
+financial statement for the year ended March 31, 2024 are not comparable to the previous year as presented.
+(0.2) (1,578.5)
+42,778.6
+11,634.2
+AALOK D. SHANGHVI
+Whole-time Director
+Company Secretary and Compliance Officer
+ANOOP DESHPANDE
+(DIN: 00005588)
+Chairman and Managing Director
+DILIP S. SHANGHVI
+For and on behalf of the Board of Directors of
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+Mumbai, May 22, 2024
+Membership No.: 105754
+Partner
+per PAUL ALVARES
+8,098.2
+ICAI Firm Registration No.: 324982E/E300003
+For SRBC & CO LLP
+As per our report of even date
+Figures for previous year have been regrouped / reclassified wherever considered necessary.
+NOTE: 80
+As on May 03, 2024, the parent company's subsidiary has entered into an agreement to acquire 100% share of Valstar
+S.A. for a total consideration of USD 31 Million from its existing shareholders. The closing conditions have not yet been
+completed and hence no impact has been given in the consolidated financial statements for the year ended March 31, 2024.
+NOTE: 79
+Fair Value of Net Identifiable Assets acquired has been finalised at 34,680.4 Million (Provisional Fair Value as on
+March 31, 2023 was 31,144.4 Million) after measurement period adjustment due to creation of deferred tax assets
+on tax losses to reflect new information obtained about facts and circumstances that existed as on the acquisition date.
+As a result, allocation of Purchase Price towards Goodwill has gone down to 12,505.5 Million.
+16,041.5
+12,505.5
+31,144.4
+34,680.4
+Chartered Accountants
+(0.1)
+(82.7)
+13.8
+2022-23
+Share in total
+comprehensive income (OCI) comprehensive income (TCI)
+Share in other
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+Parent Entity Sun Pharmaceutical Industries Limited
+Subsidiaries
+No.
+Name of the entity
+S.
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint ventures as per
+Schedule III of Companies Act, 2013:
+(Annexure 'A')
+287
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Note: The above amounts / percentage of net assets and net profit or (loss) in respect of the parent company, its subsidiaries, associates and joint
+ventures are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company
+eliminations/consolidation adjustments.
+# Includes share of loss and share of TCI, from its associate of 298.0 Million.
+14.0 14,868.0
+100.0 106,177.0
+(1.3) (1,344.6)
+(9.7) (1,008.1)
+36.4 3,786.5
+100.0 10,413.2
+2022-23
+2022-23
+As % of
+consolidated
+net assets
+* in Million
+Sun Pharma Laboratories Limited
+2.
+0.7
+0.0
+0.7
+0.0
+1.3
+0.0
+Green Eco Development Centre Limited
+1.
+Indian
+100.0 95,763.8
+16,797.1
+(110.1)
+TCI
+OCI
+(0.5)
+16,907.2
+20.0
+237,483.6
+40.0
+2022-23
+As % of
+consolidated in Million
+*in Million
+As % of
+consolidated
+As % of
+consolidated in Million
+profit or (loss)
+16.0
+40.3 238,890.8
+100.0 671,059.7
+(62.0) (416,297.6)
+46.
+45.
+25.6
+0.0
+25.6
+0.0
+22.4
+0.0
+Sun Pharma (Shanghai) Co.,Ltd
+44.
+55.4
+0.1
+55.4
+0.1
+465.7
+0.1
+Ranbaxy Pharmaceuticals Ukraine LLC
+43.
+84.1
+0.1
+84.1
+0.1
+(165.0)
+47.
+Sun Pharmaceuticals (EZ) Limited
+Sunpharma Middle East FZ LLC
+Libra Merger Limited
+Intercompany elimination and consolidation adjustments
+Total
+(336.5)
+(0.4)
+34,392.2
+5.1
+(0.0)
+(0.0)
+(0.0)
+(0.0)
+0.8
+0.0
+11.6 11,081.5
+(0.8)
+(0.8)
+(0.0)
+4.8
+0.0
+(15.9)
+(0.0)
+(15.9)
+(0.0)
+(60.2)
+(0.0)
+Non controlling interest in all subsidiaries
+(0.0)
+(15.9) (13,510.0)
+0.1
+28.5
+79.9
+0.1
+0.4
+0.0
+79.5
+0.1
+1,323.6
+0.2
+Zenotech Laboratories Limited
+11.
+(441.1)
+(0.4)
+0.7
+0.0
+(441.8)
+(0.5)
+(3,382.0)
+(0.6)
+Sun Pharmaceutical Medicare Limited
+10.
+(84.8)
+(0.1)
+(84.8)
+12.
+Sun Pharma Distributors Limited
+0.9
+5,502.1
+2.
+227.3
+0.2
+227.3
+0.3
+2,339.6
+0.4
+Sun Pharmaceutical (Bangladesh) Limited
+1.
+Foreign
+(0.1)
+(0.1)
+(0.0)
+(0.0)
+(0.3)
+(0.0)
+Caraco Pharmaceuticals Private Limited
+13.
+1,868.9
+1.8
+2.6
+0.0
+1,866.3
+2.2
+(0.1)
+(205.7)
+(0.0)
+Realstone Infra Limited
+0.0
+0.0
+0.0
+2.3
+0.0
+Realstone Multitrade Private Limited
+5.
+(20.1)
+(0.0)
+(20.1)
+(0.0)
+0.0
+5,215.1
+Neetnav Real Estate Private Limited
+4.
+0.1
+0.0
+0.1
+0.0
+3.3
+0.0
+Faststone Mercantile Company Private Limited
+3.
+(12.8) (13,481.5)
+0.9
+(0.0)
+6.
+(0.0)
+9.
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+5.0
+0.0
+Universal Enterprises Private Limited
+8.
+424.0
+0.4
+Skisen Labs Private Limited
+0.2
+423.8
+0.5
+890.8
+0.2
+Softdeal Pharmaceutical Private Limited
+7.
+(0.1)
+(0.0)
+(0.1)
+(0.0)
+(0.5)
+0.0
+42,461.5
+Sun Pharmaceuticals Morocco LLC
+9.9
+As % of
+consolidated
+2023-24
+2023-24
+2023-24
+No.
+Name of the entity
+S.
+Share in total
+comprehensive income (OCI) comprehensive income (TCI)
+Share in other
+Share in profit or (loss)
+Net Assets, i.e., total assets
+minus total liabilities
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint ventures as per
+Schedule III of Companies Act, 2013:
+(Annexure 'A')
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Corporate Overview Statutory Reports
+286
+Patient First. Always.
+166.8
+0.2
+166.8
+0.2
+As % of
+in Million
+net assets
+consolidated * in Million
+profit or (loss)
+0.3
+Basics GmbH
+28.
+(10.9)
+(0.0)
+(10.9)
+(0.0)
+(20.1)
+(0.0)
+Rexcel Egypt LLC
+27.
+564.9
+(94.2)
+(94.2)
+(0.1)
+145.3
+0.0
+Sun Pharma Egypt Ltd LLC
+26.
+TCI
+OCI
+* in Million
+2023-24
+As % of
+consolidated
+As % of
+consolidated *in Million
+(0.1)
+1,711.0
+0.1
+25.
+Sun Pharma Holdings
+21.
+(7.0)
+(0.0)
+(7.0)
+(0.0)
+2.2
+0.0
+Sun Pharma Switzerland Ltd.
+20.
+(Consolidated with its Subsidiaries)
+4,033.3
+3.8
+751.9
+7.2
+3,281.4
+3.4
+22.2 149,113.3
+Taro Pharmaceutical Industries Ltd. (TARO)
+19.
+1,349.5
+1.3
+1,432.2
+17.0 113,753.9
+(0.1)
+(70.3)
+(0.1)
+226.3
+0.2
+226.3
+0.2
+(0.2) (1,407.1)
+Ranbaxy Farmaceutica Ltda.
+24.
+96.5
+0.1
+96.5
+0.1
+Sun Pharma Canada Inc.
+1,418.7
+Sun Pharma ANZ Pty Ltd
+23.
+74.6
+0.1
+74.6
+0.1
+(96.5)
+(0.0)
+Sun Pharma East Africa Limited
+22.
+(70.3)
+0.2
+0.2
+208.3
+0.2
+0.1
+2,044.4
+0.3
+Sun Pharma UK Limited (Formerly known as
+Ranbaxy (U.K.) Limited)
+38.
+144.7
+0.1
+144.7
+0.2
+816.1
+0.1
+Sun Pharma Laboratorios, S.L.U.
+37.
+615.1
+0.6
+615.1
+0.6
+3,007.0
+0.4
+Ranbaxy Pharmaceuticals (Pty) Ltd.
+36.
+with its Subsidiary)
+171.5
+88.3
+0.1
+88.3
+39.
+0.0
+9.9
+0.0
+248.4
+0.0
+Ranbaxy (Thailand) Co., Ltd.
+41.
+Associate)
+(1.4) (1,476.7)#
+(182.1)
+(1.7)
+0.2
+(1.4) (1,294.6)#
+8.6
+Sun Pharmaceutical Holding USA Inc
+(Consolidated with its Subsidiaries and its
+40.
+known as Ranbaxy Holdings (U.K.) Limited)
+(0.9)
+(0.0)
+(0.9)
+(0.0)
+3,241.6
+0.5
+Sun Pharma Holdings UK Limited (Formerly
+57,891.3
+171.5
+0.2
+1,162.6
+0.0
+26.6
+0.0
+361.7
+0.1
+Ranbaxy (Poland) SP. Z O.O.
+31.
+11.4
+0.0
+11.4
+0.0
+26.6
+129.3
+Sun Pharmaceutical Industries S.A.C.
+30.
+203.2
+0.2
+203.2
+0.2
+300.3
+0.0
+Sun Pharma Italia srl
+29.
+208.3
+0.0
+42.
+32.
+2.5
+0.2
+Ranbaxy South Africa (Pty) Ltd. (Consolidated
+35.
+197.6
+0.2
+197.6
+0.2
+2,798.4
+0.4
+JSC Biosintez
+34.
+SC Terapia SA
+(198.6)
+(198.6)
+(0.2)
+1,767.9
+0.3
+AO Ranbaxy
+33.
+5,497.3
+5.2
+5,497.3
+5.7
+16,780.9
+(0.2)
+2,550.8
+2,550.8
+Sun Pharmaceutical Peru S.A.C.
+36,137.0
+0.0
+2.5
+0.1
+66.4
+0.1
+66.4
+16.
+Sun Pharmaceuticals SA (Pty) Ltd.
+0.0
+4.1
+17.
+Sun Pharma Philippines, Inc.
+(0.1)
+(519.9)
+0.0
+2.4
+0.0
+2.4
+18.
+Sun Pharma Japan Ltd. (Consolidated with its
+Subsidiary)
+0.4
+2,430.7
+(0.2)
+Sun Pharmaceuticals Germany GmbH
+15.
+96.9
+0.1
+541.8
+12.
+Sun Pharmaceutical Industries (Australia) Pty
+0.4
+2,086.9
+(0.7)
+(585.3)
+(0.6)
+(585.3)
+Limited
+13.
+(139.5)
+Aditya Acquisition Company Ltd.
+(0.9)
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+14.
+Sun Pharmaceutical Industries (Europe) B.V.
+0.0
+271.9
+0.1
+96.9
+(0.0)
+0.5
+(0.1)
+19.
+Corporate Overview Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+(Annexure 'A')
+Disclosure of additional information pertaining to the Parent Company, subsidiaries, associates and joint ventures as per
+Schedule III of Companies Act, 2013:
+Net Assets, i.e., total assets
+minus total liabilities
+Share in other
+Share in profit or (loss)
+Share in total
+comprehensive income (OCI) comprehensive income (TCI)
+S.
+Name of the entity
+No.
+2022-23
+2022-23
+2022-23
+As % of
+As % of
+consolidated
+*in Million
+net assets
+consolidated in Million
+profit or (loss)
+As % of
+consolidated
+288
+Patient First. Always.
+1.9
+0.0
+Sun Laboratories FZE
+(0.5) (2,895.3)
+0.2
+151.7
+(4.1)
+(839.2)
+(0.7)
+(687.5)
+20.
+Taro Pharmaceutical Industries Ltd. (TARO)
+24.1 142,986.9
+(139.5)
+1.1
+(1.9)
+(384.4)
+0.6
+579.9
+(Consolidated with its Subsidiaries)
+21.
+Sun Pharma Switzerland Ltd.
+0.0
+9.0
+0.0
+1.9
+964.3
+541.8
+0.6
+58,260.2
+NOTE: 71 DISCLOSURE OF A SUBSIDIARY THAT HAS NON-CONTROLLING INTEREST THAT IS MATERIAL TO
+THE GROUP
+As part of the ongoing simplification of the group structure in India, the Board of Directors of the Company at its meeting
+held on May 30, 2022, approved the Scheme of Amalgamation for the merger of Wholly-owned Subsidiaries, Sun
+Pharmaceutical Medicare Limited, Green Eco Development Centre Limited, Faststone Mercantile Company Private Limited,
+Realstone Multitrade Private Limited and Skisen Labs Private Limited (collectively "Transferor Companies"), with Sun
+Pharmaceutical Industries Limited ("Transferee Company"). Subsequently, in supersession of the approval granted on May
+30, 2022, the Board of Directors of the Company at its meeting held on November 01, 2023 approved a Composite Scheme
+of Arrangement covering two aspects (1) Amalgamation of the same five wholly-owned subsidiaries into the Company, and
+(2) Reclassification of general reserves to retained earnings with an appointed date of April 01, 2023 and/or such other date
+as may be approved by the National Company Law Tribunal pursuant to the provisions of Sections 230 to 232 of Companies
+Act, 2013 and other relevant provisions of the Companies Act, 2013 and rules framed thereunder.
+NOTE: 70
+(b) The Parent Company holds 24.91% in the capital of Shimal Research Laboratories Limited. However, as the Parent
+Company does not have any 'Significant Influence' in Shimal Research Laboratories Limited, as is required under Ind AS
+28 - "Investments in Associates and Joint Ventures", the said investment in Shimal Research Laboratories Limited has
+not been consolidated as an "Associate Entity".
+(a) Sun Pharma Netherlands B.V., a subsidiary of the parent company held 21.53% in the capital of Enceladus Pharmaceutical
+B.V. Enceladus Pharmaceutical B.V has been dissolved during the previous year. As Sun Pharma Netherlands B.V. did
+not have any 'Significant Influence' in Enceladus Pharmaceutical B.V., as is required under Ind AS 28 - "Investments in
+Associates and Joint Ventures", the said investment in Enceladus Pharmaceutical B.V. had not been consolidated as an
+"Associate Entity".
+NOTE: 69
+279
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Financial Statements
+Consolidated
+Statutory Reports
+Corporate Overview
+(2,819.2)
+(0.4)
+(302.4)
+(0.3)
+(302.4)
+3.
+Sun Pharma De Mexico S.A. DE C.V.
+0.2
+1,122.4
+0.0
+17.2
+Name of Subsidiary
+Principal place of
+business
+Country of
+incorporation
+Held by non-controlling
+interest
+207.5
+706.2
+(369.7)
+Year ended
+March 31, 2023
+Year ended
+March 31, 2024
+Year ended
+March 31, 2023
+Year ended
+March 31, 2024
+Accumulated non-controlling interests
+* in Million
+Profit/(loss) allocated to
+non-controlling interests
+Individually immaterial subsidiaries with non-controlling interests
+Total
+TARO Group
+0.0
+Name of Subsidiary
+14.34%
+Voting power
+As at
+March 31, 2023
+21.52%
+21.52%
+Beneficial ownership
+Israel
+United States of
+America
+and its subsidiaries (TARO Group)
+Taro Pharmaceutical Industries Ltd.
+March 31, 2024
+As at
+14.34%
+17.2
+4.
+Sun Pharmaceutical Peru S.A.C.
+9.
+Ranbaxy Nigeria Limited
+2,305.2
+(0.3) (1,496.4)
+0.5
+430.5
+0.4
+430.5
+(0.6)
+(546.1)
+(0.5)
+(546.1)
+0.4
+10.
+15.0
+88,942.2
+(5.9)
+(4,990.2)
+5.5
+1,111.1
+(3.7)
+(3,879.1)
+11.
+Alkaloida Chemical Company Zrt.
+9.8
+Sun Pharma (Netherlands) B.V
+2022-23
+As % of
+Ranbaxy (Malaysia) SDN. BHD.
+65.1
+(0.0) (190.0)
+(0.0)
+(2.5)
+(0.0)
+(2.5)
+5.
+OOO "Sun Pharmaceutical Industries" Limited
+(0.0)
+(0.1)
+(0.0)
+(0.1)
+8.
+6.
+0.0
+0.7
+0.0
+0.7
+7.
+Sun Pharma France
+(0.6)
+(3,382.3)
+0.1
+65.1
+0.1
+Sun Pharma De Venezuela, C.A.
+186.1
+*in Million
+OCI
+337.0
+0.1
+61.4
+0.0
+32.6
+Ranbaxy (U.K.) Limited)
+40.
+Sun Pharma Holdings UK Limited (Formerly
+0.5
+3,134.0
+(0.0)
+(0.7)
+(0.0)
+(0.7)
+known as Ranbaxy Holdings (U.K.) Limited)
+41.
+Sun Pharmaceutical Holding USA Inc
+(Consolidated with its Subsidiaries and its
+Associate)
+9.9
+58,526.6
+(5.0)
+(4,211.8)#
+1.7
+346.6
+0.3
+32.6
+0.0
+1,904.3
+36.
+Ranbaxy South Africa (Pty) Ltd. (Consolidated
+0.2
+1,046.6
+0.1
+107.8
+0.1
+107.8
+with its Subsidiary)
+37.
+Ranbaxy Pharmaceuticals (Pty) Ltd.
+(3.7)
+0.4
+0.4
+61.3
+61.3
+38.
+Sun Pharma Laboratorios,S.L.U.
+0.1
+667.6
+0.1
+61.4
+39.
+Sun Pharma UK Limited (Formerly known as
+0.3
+2,507.5
+2,419.6
+(3,865.2)#
+Ranbaxy (Thailand) Co., Ltd.
+(8.8)
+46.
+Non controlling interest in all subsidiaries
+Sun Pharmaceuticals (EZ) Limited
+(0.0)
+(44.8)
+(0.1)
+(52.1)
+(0.0)
+(52.1)
+5.6 33,200.9
+(0.5)
+(393.6)
+Intercompany elimination and consolidation adjustments
+(70.1) (416,022.1)
+217.9 184,679.2
+Total
+100.0 593,154.7
+100.0 84,735.8
+(11.2) (2,266.9)
+110.4 22,409.3
+100.0 20,298.8
+(2.5) (2,660.5)
+197.2 207,088.5
+100.0 105,034.6
+# Includes share of loss and share of TCI, from its associate of 204.9 Million.
+(0.0)
+(8.8)
+(0.0)
+(3.4)
+0.0
+250.3
+(0.0)
+(11.8)
+(0.0)
+(11.8)
+43.
+Sun Pharmaceuticals Morocco LLC
+(0.0) (236.3)
+(0.5)
+(387.5)
+42.
+(0.4)
+44.
+Ranbaxy Pharmaceuticals Ukraine LLC
+0.1
+431.3
+0.0
+33.3
+0.0
+33.3
+45.
+Sun Pharma (Shanghai) Co.,Ltd
+(0.0)
+(387.5)
+2.3
+2,419.6
+2.9
+(153.0)
+(0.1)
+(153.0)
+26.
+Sun Pharma Canada Inc.
+0.1
+392.6
+0.0
+26.4
+0.0
+26.4
+27.
+Sun Pharma Egypt Ltd LLC
+0.0
+204.4
+(0.2)
+(155.6)
+(0.1)
+(155.6)
+28.
+Rexcel Egypt LLC
+(0.0)
+(18.5)
+(0.2)
+(1,578.9)
+(0.3)
+Ranbaxy Farmaceutica Ltda.
+TCI
+22.
+Sun Pharma Holdings
+18.9
+112,135.7
+(123.6) (104,758.0)
+(99.7) (104,758.0)
+23.
+Sun Pharma East Africa Limited
+(0.0)
+(179.5)
+(0.0)
+(0.1)
+(0.1)
+(125.9)
+24.
+Sun Pharma ANZ Pty Ltd
+0.1
+534.0
+0.1
+124.8
+0.1
+124.8
+25.
+(125.9)
+(5.8)
+(0.0)
+(5.8)
+0.0
+23.2
+0.0
+23.2
+33.
+SC Terapia SA
+2.3
+13,795.4
+5.2
+4,371.6
+4.2
+305.6
+4,371.6
+AO Ranbaxy
+0.4
+2,275.5
+1.2
+1,055.2
+1.0
+1,055.2
+35.
+JSC Biosintez
+0.5
+3,047.9
+34.
+consolidated in Million
+0.1
+32.
+29.
+Basics GmbH
+0.2
+1,481.6
+0.2
+149.2
+0.1
+149.2
+30.
+Sun Pharma Italia srl
+0.0
+Ranbaxy (Poland) SP. Z O.O.
+95.3
+69.7
+0.1
+69.7
+31.
+Sun Pharmaceutical Industries S.A.C.
+0.0
+114.1
+0.3
+288.8
+0.3
+288.8
+0.1
+32,089.1
+2,303.1
+337.0
+2,430.1
+240.3
+4,308.4
+911.7
+3,989.3
+424.1
+9,449.7
+183.8
+9,633.5
+in Million
+To be completed in
+Less than
+1 year
+More than
+As at
+1-2 years
+2-3 years
+3 years March 31, 2024
+Projects in progress
+Formulation
+1,311.0
+Active Pharmaceutical Ingredient
+Others
+274.5
+1,311.0
+274.5
+45.4
+3,989.3
+911.7
+4,308.4
+in Million
+As at
+March 31, 2023
+2-3 years
+8.9
+2,819.6
+20.4
+2,840.0
+499.2
+19.4
+518.6
+More than
+3 years
+4,080.1
+165.9
+4,246.0
+Projects in progress
+Projects temporarily suspended
+3,472.7
+Projects in progress
+Projects temporarily suspended
+Projects temporarily suspended
+* in Million
+As at
+March 31, 2024
+10,862.7
+214.6
+11,077.3
+Less than
+More than
+1-2 years
+2-3 years
+1 year
+3 years
+Overdue Capital work-in-progress
+1-2 years
+214.7
+45.4
+Patient First. Always.
+282
+Corporate Overview Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+Ageing of intangible assets under development
+Projects in progress
+Projects in progress
+Projects temporarily suspended
+Overdue intangible assets under development
+Projects in progress
+Others
+Projects in progress
+Others
+in Million
+Less than
+1 year
+3,712.4
+3,712.4
+1-2 years
+2-3 years
+More than
+3 years
+As at
+March 31, 2024
+1,733.3
+183.8
+106.7
+221.7
+30,770.8
+214.7
+1,845.6
+in Million
+To be completed in
+Less than
+1 year
+More than
+As at
+1-2 years
+2-3 years
+1,845.6
+3 years March 31, 2023
+Formulation
+1,221.1
+Active Pharmaceutical Ingredient
+221.7
+Others
+106.7
+Projects temporarily suspended
+183.8
+1,733.3
+1,221.1
+Projects in progress
+Less than
+1 year
+3,463.8
+183.8
+364.6
+56,815.2
+Total expenses excluding exceptional item
+Profit after tax
+Total comprehensive income for the year
+Year ended
+March 31, 2024
+in Million
+Year ended
+March 31, 2023
+57,965.0
+50,767.2
+48,807.5
+45,853.0
+3,281.4
+6,126.4
+964.3
+11,556.4
+Year ended
+March 31, 2024
+in Million
+Year ended
+March 31, 2023
+NOTE: 75 DETAILS OF CAPITAL WORK-IN-PROGRESS AND INTANGIBLE ASSETS UNDER DEVELOPMENT:
+Ageing of Capital work-in-progress
+NOTE: 72
+10,270.7
+6,981.9
+2,324.0
+(10,090.6)
+The parent company and its subsidiaries in India have used accounting software for maintaining its books of account which
+have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
+transactions recorded in the software, except that audit trail feature is not enabled for certain changes made using privileged
+/ administrative access rights to the all the accounting software and/or the underlying SQL database. Further, no instance of
+audit trail feature being tampered with was noted in respect of other software.
+Total income
+Consolidated statement of profit and loss of TARO Group
+(31,688.3)
+(700.7)
+336.5
+393.6
+34,392.2
+33,200.9
+Patient First. Always.
+280
+Corporate Overview Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+NOTE: 73
+The summarised consolidated financial information of TARO Group before inter-company eliminations:
+Non-current assets
+Current assets
+Non-current liabilities
+Current liabilities
+As at
+March 31, 2024
+in Million
+As at
+March 31, 2023
+36,137.0
+71,720.6
+107,984.5
+(473.7)
+(30,118.1)
+67,164.0
+108,211.9
+Consolidated balance sheet of TARO Group
+The Company considers climate-related matters in estimates and assumptions, where appropriate. This assessment includes
+a wide range of possible impacts on the Company due to both physical and transition risks. Even though the Company
+believes its business model and products will still be viable after the transition to a low-carbon economy, climate-related
+matters increase the uncertainty in estimates and assumptions underpinning several items in the financial statements.
+Even though climate-related risks might not currently have a significant impact on measurement, the Company is closely
+monitoring relevant changes and developments, such as new climate-related legislation.
+Consolidated cash flows information of TARO Group
+Net cash generated from/ (used in) operating activities
+Net cash generated from/ (used in) investing activities
+Outstanding dues
+Disputed dues
+Less than
+1 year
+9,738.4
+46,029.2
+Not due
+Outstanding dues
+Disputed dues
+281
+for the year ended March 31, 2024
+1-2 years
+Notes to the Consolidated Financial Statements
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+56,533.0
+60.7
+56,472.3
+Financial Statements
+Consolidated
+in Million
+As at
+March 31, 2024
+NOTE: 74 TRADE PAYABLE AGEING
+in Million
+As at
+437.8
+92.8
+203.0
+10,052.4
+46,029.2
+6.7
+More than
+3 years
+16.6
+314.0
+56,450.6
+431.1
+76.2
+175.7
+March 31, 2023
+27.3
+3 years
+143.2
+4.3
+147.5
+2-3 years
+9.8
+199.7
+More than
+6.2
+136.9
+Not due
+1-2 years
+Less than
+46,456.6
+2-3 years
+1 year
+9,551.9
+40.4
+189.9
+130.7
+46,456.6
+9,592.3
+Table 7
+Table 8
+Standalone
+Ratio
+Reasons (if Variance is >25%)
+FY23
+Variance
+(%)
+2.6
+Return on Net Worth (%)
+12.1
+FY24
+19.6
+25.7
+Net Profit Margin (%)
+0.8
+25.5
+7.1
+Operating Profit Margin (%)
+Reduction in debt and increase in Cash and Cash equivalents.
+(58.3) Reduction in debt and increased in Net Worth.
+0.12
+0.05
+Debt Equity Ratio (times)
+30.0
+2.0
+2.6
+Current Ratio (times)
+20.1
+70.4
+1.6
+Debtors Turnover (times)
+(12.5)
+6.7
+Interest Coverage
+5.7
+10.9
+(47.7)
+Interest coverage ratio is lower due to increase in borrowings and
+consequent finance costs
+Current Ratio (times)
+3.36
+1.97
+70.7
+Debt Equity Ratio (times)
+0.47
+0.33
+42.4
+Operating Profit Margin (%)
+25.5
+29.7
+Net Profit Margin (%)
+14.4
+8.3
+(14.1)
+73.5
+1.5
+Inventory Turnover (times)
+(24.1)
+2.9
+2.2
+Return on Net Worth is higher for the year ended March 31, 2024, due to
+lower profit in previous year on account of impairment charge on investment
+56.7
+13.7%
+Interest Coverage
+Primarily due to payment towards product settlement liabilities during
+the year
+Graph 14
+(*in Billion)
+Market Capitalisation*
+2,359
+FY23
+FY23
+FY24
+Graph 16
+(%)
+0
+Business Mix (FY24)
+India Business
+Emerging Markets
+Rest of World (ROW)##
+32
+31
+18
+14
+Active Pharmaceutical
+5
+Ingredients (API) and others
+US Business
+265.4
+410
+FY24
+Financial Statements
+0
+11.8%
+Graph 9
+(in Billion)
+Adjusted Net Profit After
+Minority Interests#
+Graph 10
+(in Billion)
+FY23
+FY24
+Graph 12
+(*per share)
+Book Value Per Share
+(*per share)
+Net Worth
+233.4
+FY23
+FY24
+Property, Plant and Equipment and Other Intangible
+Assets (at cost)**
+FY23
+397
+Business-wise Revenue Share (FY24)
+0
+560
+3,888
+FY24
+Consolidated
+Corporate Overview
+Statutory Reports
+Financial Statements
+Management Discussion and Analysis
+Variance
+Ratio
+FY24
+FY23
+Reasons (if Variance is >25%)
+(%)
+Return on Net Worth (%)
+15.0
+15.1
+(0.7)
+Debtors Turnover (times)
+4.2
+3.8
+10.5
+Inventory Turnover (times)
+1.1
+1.0
+10.0
+Financial Ratios
+49.6
+26
+(in Billion)
+637
+Graph 17
+(%)
+India
+32
+International
+68
+EBITDA = (Revenue from contracts with customers + Other operating income) - (cost of material consumed + purchase of stock-in-trade + changes
+in inventories of finished goods, stock-in-trade and work-in-progress + employee benefits expense + other expenses + Net gain/loss on foreign
+currency transactions)
+*
+As on March 31 of the respective year
+**
+Property, plant, equipment, and other intangible assets (at cost) includes capital work-in-progress and intangible assets under development
+# Adjusted net profit after minority interest and adjusted earnings per share exclude the impact of exceptional items
+## Row includes Western Europe, Canada, Israel, Japan, Australia, New Zealand, and other markets
+Patient First. Always.
+101
+0
+16.5%
+Graph 13
+(* in Billion)
+0
+13.7%
+Graph 15
+25
+Increase in borrowings
+FY20
+FY24 Business Highlights
+Gastroenterology
+12
+Anti-infectives
+11
+Pain/Analgesics
+8
+Diabetology
+7
+Dermatology
+Respiratory
+Vitamins/Minerals/
+Nutrients
+Urology
+Gynaecology
+Ophthalmology
+Others
+India Prescription Ranking - Leadership in
+Key Therapeutic Areas5
+65
+5
+5
+4333
+India Sales Growth
+103
+128
+16
+136
+Neuropsychiatry
+(%)
+• Offer a wide portfolio of products to customers across
+multiple dosage forms
+• Ensure stringent compliance, robust product quality
+and an efficient supply chain
+India Business: Largest Pharma Company in India 4,5
+31%
+Share of revenues
+*148,893 Million
+Revenues in FY24
+#1
+Rank with 8.5% market share**
+#1
+Rank by prescription across
+12 different classes of doctors
+32
+Brands among India's
+top-300 brands**
+~14,000
+Total field force
+** As per AIOCD AWACS data for 12 months ended March 2024
+Sun Pharma is India's largest pharmaceutical company,
+holding an 8.5% market share and boasting a formidable
+presence in the country's chronic and acute segments.
+With a comprehensive product portfolio spanning diverse
+therapeutic segments such as neuropsychiatry, cardiology,
+diabetes, gastroenterology, pain/analgesics, gynaecology,
+ophthalmology, urology, dermatology, respiratory, anti-
+infectives, and more, Sun Pharma addresses a broad
+spectrum of healthcare needs.
+Leveraging our extensive sales force coupled with a
+widespread distribution network and expansive geographical
+reach, Sun Pharma effectively penetrates the Indian
+market. Our Company's proven brand equity in the
+medical community reinforces our identity as a trusted
+healthcare partner.
+At Sun Pharma, our commitment to innovation is not just a
+statement, but a driving force. This is evident through our
+continuous launch of new products developed through in-
+house research and development initiatives. Simultaneously,
+we are strategically positioning ourselves as a preferred
+partner for in-licensing the latest generation of innovative
+products, aligning with our mission to enhance access to
+cutting-edge treatments for patients across India.
+Graph 22
+India Business Therapeutic Revenue Break-Up4
+(%)
+Therapy
+Cardiology
+17
+• Focus on complex generics and high entry
+barrier segments
+Table 10
+February 2024
+Dermatologists
+1
+1
+ENT specialists
+Chest physicians
+Ophthalmologists
+Gynaecologists
+Orthopaedic specialists
+General surgeons
+1
+1
+1
+1
+1
+2
+222
+2
+1
+2
+FY20
+FY21
+FY22
+FY23
+FY24
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+1
+Specialist
+1
+1
+February 2023
+Psychiatrists
+1
+1
+Graph 21
+Neurologists
+1
+1
+Cardiologists
+1
+1
+(in Billion)
+Diabetologists
+1
+1
+Gastroenterologists
+1
+1
+149
+Nephrologists
+1
+1
+Consultant Physicians
+Urologists
+1
+Net Profit margin is higher for the year ended March 31, 2024, due to lower
+profit in previous year on account of impairment charge on investment
+• Enhance share of specialty/branded business
+Financial Statements
+Sun Pharma's US business comprises specialty and generic medicines, reflecting the Company's diverse offerings in the
+pharmaceutical market. Over the years, we have emerged as the 13th largest generics pharmaceutical company in the United
+States and securing the second position by prescriptions in the US dermatology market. Concurrently, the Company has
+continuously expanded our footprint in the Specialty segment, with a strategic focus on dermatology, ophthalmology, and
+onco-dermatology. In FY24, US business contributed 32% to the Company's consolidated revenues, demonstrating the
+segment's significant contribution to our Company's overall performance.
+Moreover, Sun Pharma has established valuable relationships with leading wholesalers, distributors, chain drugstores,
+healthcare providers, and payors in the USA, underscoring our strong presence and network in the market. The Company's
+vertically integrated manufacturing capabilities enable us to efficiently serve our customers in the United States, ensuring
+seamless production and supply chain management to meet market demands effectively.
+Milestones in the US Business
+Table 9
+Year
+Major Initiatives
+FY24
+FY23
+Taro entered into a definitive merger agreement with Sun
+• Acquired Concert Pharma giving access to deuruxolitinib for Alopecia Areata
+Launched SEZABY in the US
+FY22
+FY20
+FY19
+•
+Launched WinleviⓇ in the US
+• Launched Cequa and Absorica LD in the US
+•
+Launched llumya, Yonsa & Xelpros in the US
+FY18
+FY17
+•
+• Received US FDA approval for Cequa
+•
+Released Ready-to-Infuse INFUGEM™
+27
+• Launched Odomzo in the US
+Statutory Reports
+Management Discussion and Analysis
+Corporate Overview
+Sun Pharma demonstrated a strong performance across its global operations with a consolidated topline growth of 10.4%
+compared to FY23. Business-wise, the topline growth was primarily led by the US market with 13.4% Y-o-Y growth, followed
+by Rest of the World markets with 11.1% Y-o-Y growth. India business also demonstrated 9.5% growth in revenue over the
+past year and Emerging Markets revenue witnessed a steady growth compared to previous year.
+The Company's EBITDA for FY24 witnessed a growth of 11.8% compared to last year, with an EBITDA margin of 26.9%.
+Adjusted net profit for the year grew by 16.5% Y-o-Y, demonstrating profitable growth for FY24.
+Overall, these results reflect Sun Pharma's continued focus on growth and profitability across its global operations. The
+Company's strong performance across its key markets demonstrates its ability to navigate through challenging times and
+continue to deliver value to its stakeholders.
+Business-wise Review
+US Business
+32%
+Share of revenues
+153,493 Million
+Revenues in FY24
+635
+Cumulative ANDAS
+filed as on March 31, 2024
+531
+Cumulative ANDAS
+approved as on
+March 31, 2024
+65
+Cumulative NDAs
+filed as on
+March 31, 2024
+51
+Cumulative NDAs approved
+as on March 31, 2024
+104
+ANDAs pending USFDA
+approval as on March 31, 2024
+14
+NDAs pending
+USFDA approval as
+on March 31, 2024
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Financial Statements
+Road Ahead
+• Received US FDA approval for llumya
+Acquired Ocular Technologies to receive access to Cequa for dry eye
+|εετ
+121
+69
+49
+τε
+Filed
+Approved
+Graph 20
+56
+(Numbers)
+Dermatology
+CNS
+CVS
+Pain
+Allergy
+Oncology Antibiotic Metabolism
+Gastro
+Others
+Patient First. Always.
+97
+28
+Corporate Overview
+Statutory Reports
+Management Discussion and Analysis
+ANDA Approvals by Therapeutic Areas as of March 2024
+• Acquired Odomzo, a branded oncology product from Novartis
+FY24
+FY22
+FY13
+•
+Acquired DUSA for entry into branded specialty
+FY10
+Acquired Taro Pharma for entry into US dermatology
+FY98
+• Entered the US through Caraco acquisition
+FY24 Highlights
+Revenues from the US grew by 13.4% Y-o-Y to reach 153,493 Million in FY24. The growth was mainly driven by specialty
+with all growth products contributing viz. Ilumya, Cequa, Winlevi and Odomzo.
+US Sales Growth
+Graph 18
+Graph 19
+(in Billion)
+Cumulative ANDAs filed and approved
+(Numbers)
+bbbbl
+FY20
+FY21
+FY22
+FY23
+FY24
+130
+FY21
+FY23
+FY24
+0
+116
+2020
+Exclusive Out-licensing agreement with Hikma for
+llumya
+Middle East &
+North Africa
+2020
+In-licensing agreement with SPARC for SCD-044
+Global
+Japan, ANZ, Brazil,
+Mexico & Russia
+US, Japan &
+Canada
+Expand non-prescription product basket in Romania and
+neighbouring markets
+US & Canada
+Increase access to new markets for Winlevi
+Registration and commercialisation of the product in all
+Middle East & North Africa (MENA) markets
+Potential indication in psoriasis, atopic dermatitis and
+other auto-immune disorders
+2019
+Out-licensing agreement with AstraZeneca UK for
+ready-to-use infusion oncology products
+Mainland China
+Commercialise oncology portfolio in Mainland China
+2019
+Licensing agreement with CMS for tildrakizumab,
+Cequa and 8 generic products
+Greater China
+Acquired the "Proactiv", "Restorative Elements" and "In
+Defense of Skin" brands. Strengthens Taro's OTC portfolio
+Add a specialty product to dermatology franchise. Topical
+treatment of acne vulgaris
+Access to Greater China market
+In-licensing agreement for Winlevi
+Taro (Sun's subsidiary) acquired Alchemee Business
+from Galderma
+Statutory Reports
+Management Discussion and Analysis
+21
+Year
+Deals
+Country/Countries Rationale
+2023 In-licensed Nidlegy™
+Europe, ANZ
+New anti-cancer biopharmaceutical for the treatment of
+melanoma and non-melanoma skin cancers
+FY23
+2021
+US
+US
+Addition of product to Specialty portfolio. Treatment of
+neonatal seizures
+2023
+In-licensed Sezaby
+2022
+Acquired Uractiv portfolio from Fiterman Pharma
+Romania
+2022 Adding territories to Winlevi via licensing agreement
+2022
+Add a late-stage specialty product to dermatology
+franchise. Treatment of alopecia areata
+Financial Statements
+2018
+Japan
+2012 Acquired DUSA Pharma, Inc.
+2010
+Acquired Taro Pharmaceutical
+Industries Ltd.
+1997 Acquired Caraco
+Strengthen Specialty ophthalmic portfolio in US. To
+prevent pain in patients undergoing cataract surgery
+Strengthen position in the Global Generic Pharma
+Industry. Creating largest pharma company in India with
+strong positioning in Emerging Markets.
+Strengthen the Specialty product pipeline. Treatment of
+plaque psoriasis
+US
+Access to the sterile injectable capacity in the US
+Acquired Pharmalucence
+US
+Access to dermatology generic portfolio
+Israel
+Manufacturing facilities at Israel & Canada
+US
+Entry into the US Market
+Patient First. Always.
+22
+Corporate Overview
+Financial Statements
+Access to specialty drug-device combination in
+dermatology segment
+Acquired Pola Pharma in Japan
+2014
+In-licensing agreement with Merck for tildrakizumab
+Access to Japanese dermatology market
+2016 Acquired global rights for Cequa & Odomzo
+Global
+Enhance Specialty pipeline. Treatment of dry eye and
+locally acting Basal Cell Carcinoma respectively.
+2016 Acquired Biosintez
+Russia
+Local manufacturing capability to enhance presence in
+Russian market
+2016 Out-licensing agreement with Almirall for tildrakizumab
+Europe
+Global
+Access to European market for tildrakizumab
+2015
+Acquired InSite Vision Inc.
+2015
+Sun Pharma - Ranbaxy merger
+Japan
+Entry into Japan
+US
+Global
+2014
+2016 Acquired 14 brands from Novartis
+Statutory Reports
+Management Discussion and Analysis
+Major Deals
+Employee
+nationalities
+Growth Drivers
+Growing Population
+India's growing population provides
+an extensive consumer base for
+pharmaceutical products, driving demand.
+Demographic and Lifestyle Changes
+Shifts in demographics and lifestyle patterns, such
+as an ageing population and increasing prevalence
+of chronic diseases, lead to higher medicine
+consumption, particularly chronic medications.
+Government Support and Incentives
+The Indian government's robust support and
+attractive incentives, such as the Production Linked
+Incentive (PLI) scheme, are pivotal in bolstering the
+pharmaceutical industry. These measures create a
+favourable business environment.
+Specialty medicines, catering to chronic, complex, and rare diseases, are poised to become a significant component of global
+pharmaceutical spending, accounting for 43% of expenditure by 2028. In leading developed markets, these medicines are
+expected to command over 55% of total spending, reflecting a rising trend in healthcare priorities. However, in pharmerging
+countries, specialty medicines still constitute a smaller share (13%) of total expenditures, primarily due to cost considerations.
+The growth of specialty medicines underscores their importance in addressing specific patient needs, although they treat
+only a small fraction (2-3%) of the patient population. Despite their relatively limited patient base, these medicines are
+crucial in addressing unmet medical needs, particularly for individuals grappling with challenging health conditions.
+Share of Speciality Medicines in Overall Pharmaceutical Spending – By Market
+24
+35
+Speciality Medicines¹
+40
+43
+50
+55
+τε
+36
+2013
+23
+2018
+13
+43
+2023
+in the domestic market and on a global scale,
+positioning India as a major player in the international
+pharmaceutical market.
+India's prowess in cost-effective end-to-end
+Corporate Overview
+Financial Statements
+Statutory Reports
+Management Discussion and Analysis
+India¹
+The Indian pharmaceutical market will likely grow
+substantially, with medicine spending expected to reach
+US$38-42 Billion by 2028, reflecting a CAGR of 7-10%
+between 2024 and 2028. Acute therapies like anti-infectives
+and vitamins/minerals saw improved volumes in 2023,
+while chronic therapies, including cardiac and respiratory
+segments, continue to perform well.
+India Pharmaceutical Spending and Growth
+27
+2023
+2028
+manufacturing processes is a critical driver of the
+pharmaceutical industry. This expertise allows for
+competitive pricing of pharmaceutical products
+38-42
+CAGR
+7-10%
+Graph 6
+(US$ Billion)
+Increasing Access to Modern Medicines
+Efforts to enhance healthcare infrastructure and
+distribution networks are expanding access to modern
+and innovative medicines across the country.
+Improving Affordability
+Rising per capita incomes contribute to improved
+affordability of healthcare and pharmaceuticals,
+making them more accessible to a broader segment
+of the population.
+Expertise in Low-cost Manufacturing
+2024-2028
+Corporate Overview
+00
+Global Market
+The consumer healthcare market includes personal
+healthcare products available without a prescription,
+including over-the-counter (OTC) drugs, health supplements,
+cosmetics, disinfectants, and consumer medical devices.
+Key segments include OTC pharmaceuticals and dietary
+supplements, which people can obtain from retail
+stores, online platforms, or hospitals. The global OTC
+pharmaceutical market in 2023 faced challenges primarily
+due to a weak cough and cold season, resulting in modest
+growth of 3.9%. This segment's performance significantly
+influenced overall market dynamics, highlighting its
+vulnerability to seasonal variations. Regionally, there
+were notable disparities, with Asia-Pacific emerging as a
+prominent region. Categories like digestive remedies and
+skin treatments outpaced the market average, emphasising
+the importance of diversification. Looking ahead to 2024,
+initial growth estimates suggest a cautious start but
+anticipate a rebound in the latter half, projecting overall
+growth between 4% to 6% for the year.
+Sun Pharma: A Leading Global Pharmaceutical Company
+Sun Pharmaceutical Industries Limited (Sun Pharma), along
+with our subsidiaries and associates, is a leading global
+pharmaceutical entity and the largest pharmaceutical
+company in India. With a firm dedication to delivering
+high-quality medicines, Sun Pharma has earned the trust
+of customers and patients in over 100 countries. Central
+to our operations is a diverse and multicultural workforce
+representing over 50 nationalities, fostering innovation
+and excellence.
+Sun Pharma's extensive portfolio encompasses innovative
+Specialty medicines, branded generics, pure generics, and
+APIs, catering to a wide spectrum of healthcare needs.
+Leveraging robust R&D capabilities, advanced manufacturing
+infrastructure, and a global commercial footprint, our
+Company remains agile and empathetic in addressing the
+dynamic requirements of patients and customers worldwide.
+Our Company's large-scale and extensive manufacturing
+base supplies medicines around the world. We manufacture
+and distribute a wide array of dosage forms, including pills,
+capsules, injectables, sprays, ointments, creams, liquids, drug
+delivery systems, APIs and intermediates.
+Robust Credentials 4,5
+Largest
+Pharmaceutical
+company in India
+Leading
+Global Specialty
+generic company
+Consumer Healthcare (CHC) Market³
+Among the Largest
+13th
+Largest generic
+pharmaceutical
+company in the US
+~100
+Countries reach
+41
+Manufacturing sites
+across six continents
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+43,000+
+50+
+Global employee
+base
+Indian pharmaceutical
+companies in Emerging
+Markets
+2028
+Strategic initiatives,
+including collaborations and
+investments to enhance API
+production capacity, further
+propel market growth
+in the oncology segment
+due to rising cancer
+cases worldwide
+Top 10
+Other
+Pharmerging Market
+Developed Market
+Developed Market
+Graph 7
+(%)
+Patient First. Always.
+19
+Growing adoption of
+biologics and biosimilars
+in pharmaceutical
+development
+20
+Financial Statements
+Statutory Reports
+Management Discussion and Analysis
+Active Pharmaceutical Ingredients (APIs)²
+The global API market will likely thrive, with estimates suggesting it will reach US$ 307 Billion by 2029.
+Increasing prevalence of
+chronic disorders such as
+diabetes and cardiovascular
+diseases globally
+Growth Drivers for API
+Significant growth expected
+Corporate Overview
+Global Specialty Business
+2023 Acquired Concert Pharma in the US
+Share of Specialty Medicines in Overall Pharmaceutical Spending - By Market¹
+SCD-044
+Selective SIPR1 Agonist
+atopic dermatitis
+psoriasis
+GL0034
+GLP-1R Agonist
+Type 2 diabetes & obesity
+Table 6
+Preclinical
+Phase-1 Phase-2 Phase-3 Registration
+Pain in osteoarthritis
+All candidates for global markets except NidlegyTM where Sun is commercial partner for Europe, Australia & New Zealand, Nidlegy™ is a trademark
+of Philogen.
+24
+Corporate Overview Statutory Reports
+Management Discussion and Analysis
+Financial Statements
+Business Model
+At Sun Pharma, we are committed to our vision of 'Reaching People and Touching
+Lives Globally as a Leading Provider of Valued Medicines.' We strive to achieve this
+vision through a well-defined strategy that focuses on sustainable growth, cost
+leadership, business development, balanced investments, and future profitability.
+Our Businesses
+US
+India
+Emerging
+Markets
+Patient First. Always.
+Global
+Specialty*
+skin cancers
+Liposomal intra-articular
+lubrication
+For therapeutic solutions for Long-Term Care (LTC) patients
+Sprinkle
+Portfolio
+•
+Products using sprinkle technology for patients who have difficulty swallowing
+•
+Sprinkle versions of metoprolol (cardiology), rosuvastatin (cardiology) & duloxetine (neuro-psychiatry)
+Current Markets: US
+Sources: (1, 2, 4, 6, 9 and 10- Sun Pharma press releases), (3 - LEVULANⓇ KERASTICK® website), (5 - Product labels), (7 and 8 - Product labels)
+Sun Pharma's Global Specialty Pipeline
+Sun Pharma has a pipeline of six specialty molecules undergoing clinical trials. The details of which are mentioned hereunder:
+Candidate
+melanoma & non melanoma
+deuruxolitinib
+Indication
+JAK Inhibitor
+alopecia areata
+llumya (tildrakizumab)
+psoriatic arthritis
+Nidlegy™
+MM-II
+IL-23 Antagonist
+Immunocytokines
+Mechanism of Action
+• Current Markets: US
+Rest of the
+World
+ΑΡΙ
+Statutory Reports
+Key Performance Indicators
+Graph 8
+Gross Sales
+433
+FY24
+478
+10.4%
+Adjusted Earnings
+Corporate Overview
+Graph 11
+Specialty medicines represent the latest generation of pharmaceuticals designed to treat chronic, complex, and rare
+diseases. By 2023, specialty medicines constituted approximately 40% of global pharmaceutical spending, a notable increase
+from 35% in 2018. This upward trajectory is evident in the top-10 developed markets, where specialty medicines accounted
+for 50% of pharmaceutical spending in 2023 and will likely reach 55% by 2028. This expansion highlights the sustained
+growth momentum of specialty medicines in addressing the unmet medical needs of patients worldwide.
+FY23
+FY24
+42.0
+0
+16.5%
+Management Discussion and Analysis
+(* in Billion)
+EBITDA
+per share#
+Global
+Consumer
+Healthcare**
+FY23
+• Focus on improving
+return ratios
+Global Specialty revenues are separately reported but also as a part of geographical businesses, including the US and others.
+**Global Consumer Healthcare revenues are reported as part of geographical businesses, included India and others.
+Growth Strategies
+Achieve critical mass in key markets
+Sustainable
+Growth
+Clear and actionable targets on sustainability
+Cost
+Leadership
+Embed sustainability practices in businesses
+Optimise operational costs
+Leverage benefits of vertically integrated operations
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Business
+Development
+Balance
+Profitability
+and Investments
+Increased contribution of specialty and complex products
+Direct future investments towards differentiated products
+Focus Areas
+• Enhance share of specialty
+products in overall business
+• Develop and commercialise
+differentiated and difficult-to-
+manufacture products
+• Maintain market leadership
+and high brand equity in India -
+leverage strengths for in-licensing
+latest innovative products for
+the domestic market
+• Gain critical mass across
+key international markets
+Use acquisitions to bridge critical capability gaps while yielding target ROI
+Focus on access to novel products, technology, market presence
+NEOLEV2 study compared phenobarbital to levetiracetam in the first-line treatment of neonatal seizures. 24 hours following the
+administration, 73% vs. 25% were seizure-free in the respective groups. 10
+36.0
+First and only product approved in the US for treating seizures in neonatal patients
+Beginning with the acquisition of DUSA in 2012, Sun Pharma embarked on a journey to enhance its global specialty offering.
+Our Company specialises in dermatology, ophthalmology, and onco-dermatology and remains dedicated to addressing
+critical patient needs within these therapeutic areas. Sun Pharma's investments in the Specialty portfolio revolves around
+three core strategies:
+• Product access: We aim to expand our product portfolio by securing access through in-licensing agreements, strategic
+acquisitions, and in-house R&D efforts.
+• Clinical development: Our Company is committed to advancing our pipeline of specialty assets through rigorous clinical
+development and ensuring the delivery of innovative treatments to patients worldwide.
+• Commercial infrastructure: We recognise the importance of establishing a robust front-end commercial infrastructure
+to market and distribute our specialty products effectively. This approach includes investing in sales and marketing
+capabilities and bolstering distribution channels.
+We track and report our global specialty revenues separately, which are also integrated into the Company's geographical
+business segments, including the US market and other key regions.
+FY24 Highlights
+Sun Pharma markets 26 specialty products across the globe, which contributed ~18% to the Company's consolidated
+revenues for FY24.
+Currently Marketed Specialty Portfolio
+Table 5
+43
+Product
+ILUMETRI
+WINLEVI
+Description
+•
+For treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy
+Long term clinical data shows that the significant response rate seen in 52 & 64 weeks were maintained over five years¹
+Ongoing Phase-3 trials for Psoriatic Arthritis
+•
+Current Markets include US, Australia, Japan, Canada, Europe (by partner Almirall), China (by partner CMS holdings)
+Out licensed to Hikma for Middle East & North Africa
+Topical treatment of acne vulgaris in patients 12 years of age and older
+ILUMYA/
+•
+40
+24
+•
+Top 10 developed markets
+Other developed markets
+Pharmerging markets
+Global markets
+Sun Pharma's Specialty Portfolio and Highlights
+Table 4
+(US$ Billion)
+2018
+2023
+2028
+29
+35
+43
+55
+23
+31
+36
+41
+8
+10
+13
+13
+50
+Results from two pivotal clinical trials showed favorable safety and efficacy data for WINLEVI in patients with acne aged 12 years
+and older²
+2013
+For photodynamic therapy (treatment) of minimally to moderately thick actinic keratoses of the face or scalp, or actinic keratoses of
+the upper extremities
+Current Markets: US
+Treatment of adult patients with locally advanced basal cell carcinoma (BCC) that has recurred following surgery or radiation therapy,
+or those who are not candidates for surgery or radiation therapy.
+•
+ODOMZO was shown to shrink laBCC in almost 6 out of 10 patients (56%) in a clinical study. laBCC Patients were treated with
+ODOMZOⓇ and followed for at least 18 months5
+• Currently marketed in US, Canada, Germany, France, Denmark, Switzerland, Spain, Italy, Australia and Israel
+To increase tear production in patients with keratoconjunctivitis sicca (dry eye)
+• Phase 3 confirmatory study observed clinically and statistically significant improvements in tear production and ocular surface
+integrity in patients6
+• Current Markets: US, Canada
+•
+After one 20-week course of ABSORICA therapy, 95% of patients didn't require additional isotretinoin treatment up to two years
+posttreatment4
+Out-licensed to CMS for Greater China in June 2019
+•
+More than 2x as many patients treated with BromsiteⓇ were inflammation-free at day 15 than those treated with vehicle and
+nearly 80% of patients treated with Bromsite® were pain-free at day 1 post surgery?
+• Current Markets: US
+Reduction of elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension.
+• In clinical trials, XELPROS demonstrated reductions from baseline in IOP in patients with open-angle glaucoma or ocular
+hypertension
+• Current Markets: US
+•
+• Current Markets: US and Canada
+Current Markets: US
+Treatment of postoperative inflammation and prevention of ocular pain in patients undergoing cataract surgery
+•
+In combination with methylprednisolone for the treatment of patients with metastatic castration resistant prostate cancer (CRPC).
+YONSAⓇ was shown in clinical studies to be an effective form of abiraterone acetate, and can be taken with or without food, in
+combination with methylprednisolone⁹
+Description
+Treatment of severe recalcitrant nodular acne in non-pregnant patients 12 years of age and older with multiple inflammatory nodules
+with a diameter of 5 mm or greater
+First and only PDT approved to treat the face and scalp as well as the upper arms, forearms, and hands³
+• Current Markets: US
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+LEVULAN
+KERASTICK
+Corporate Overview
+Statutory Reports
+Financial Statements
+Management Discussion and Analysis
+23
+•
+Product
+SEZABY
+Table 5
+YONSA
+XELPROS
++ BLU-U
+CEQUA
+ODOMZO
+LD
+ABSORICA
+BROMSITE
+16.01.2017
+70.
+Sun Pharma Distributors Limited
+19.03.2019
+71.
+Realstone Infra Limited
+31.01.2020
+72.
+25.10.2020
+73.
+Sun Pharma (Shanghai) Co.,Ltd
+74.
+Alchemee, LLC
+28.02.2022
+953888˜˜XXX008@@@@@˜˜x93【B § § ≥ ≥ ≥ ≥ ≥ Õ ¶ B
+Sun Pharmaceutical Medicare Limited
+0.63
+Sun Pharmaceuticals (EZ) Limited
+21.12.2020
+66.
+27.07.2017
+Sun Pharma Canada Inc.
+0.1
+24.03.2015
+24.03.2015
+63.
+SC Terapia SA
+24.03.2015
+64.
+Sun Pharma (Netherlands) B.V.
+69.
+24.03.2015
+JSC Biosintez
+19.12.2016
+Sun Pharmaceuticals Holdings USA, Inc.
+18.11.2016
+67.
+Foundation for Disease Elimination and Control of India 21.09.2016
+68.
+Zenotech Laboratories Limited
+65.
+(112.1)
+4,044.1
+89.97
+4.5
+295.1
+2,903.2
+4.41
+3,088.3
+(154.9)
+9,485.0
+4.41
+77.3
+474.8
+1,205.5
+4.41
+8.8
+858.3
+1,307.7
+1.76
+62.
+89.97
+3,419.2
+(5,524.6)
+89.97
+438.6
+951.1
+2.14
+85.5
+380.3
+621.2
+8.26
+101.0
+710.0
+(410.1)
+22.43
+97.4
+(312.3)
+616.8
+105.24
+3,215.8
+158.1
+3,374.7
+1,914.7
+Sun Pharma ANZ Pty Ltd
+45.
+24.03.2015
+37.
+Sun Pharma East Africa Limited
+13.06.2014
+38.
+Basics GmbH
+39.
+Ranbaxy Pharmaceuticals Ukraine LLC
+40.
+Sun Pharmaceuticals Morocco LLC
+41.
+Sun Pharmaceutical Industries S.A.C.
+42.
+Sun Pharma Holdings UK Limited
+43.
+Sun Pharma France
+44.
+Sun Pharma Italia srl
+Subsidiary
+% of
+Shareholding
+after Dividend
+Taxation
+(Loss) Proposed
+495.3
+Sr.
+Name of the Subsidiary Company
+acquisition Reporting Closing
+Capital
+Reserve
+No.
+incorporation Currency
+Ranbaxy Pharmaceuticals (Pty) Ltd
+rate
+Total
+Liabilities
+Investment
+Other than
+Investment
+Turnover
+in
+of subsidiary
+Profit/
+(Loss)
+before
+Taxation
+Profit
+Provision
+for
+Taxation
+Total
+Assets
+24.03.2015
+24.03.2015
+24.03.2015
+24.03.2015
+24.03.2015
+24.03.2015
+24.03.2015
+24.03.2015
+46.
+Ranbaxy South Africa (Pty) Ltd
+Ohm Laboratories, Inc.
+24.03.2015
+24.03.2015
+55.
+Ranbaxy Signature LLC
+56.
+Ranbaxy Inc.
+24.03.2015
+24.03.2015
+57.
+54.
+AO Ranbaxy
+58.
+Sun Pharma Laboratorios,S.L.U.
+24.03.2015
+59.
+Ranbaxy (Malaysia) SDN. BHD.
+24.03.2015
+60.
+Ranbaxy Farmaceutica Ltda.
+24.03.2015
+61.
+Ranbaxy (Thailand) Co., Ltd.
+24.03.2015
+24.03.2015
+47.
+Sonke Pharmaceuticals Proprietary Limited
+24.03.2015
+48.
+Sun Pharma Egypt LLC
+24.03.2015
+49.
+53.
+Rexcel Egypt LLC
+50.
+Sun Pharma UK Limited
+24.03.2015
+51.
+Ranbaxy (Poland) SP. Z O.O.
+24.03.2015
+52.
+Ranbaxy Nigeria Limited
+24.03.2015
+(347.8)
+15.9
+3.7
+92.9
+73.4
+1.3
+0.0**
+0.1
+0.1
+0.5
+0.5
+0.5
+0.5
+0.9
+0.9
+0.9
+307.6
+0.9
+246.4
+458.6
+246.4
+81.6
+84.1
+81.6
+84.1
+417.0
+417.0
+* Includes remuneration paid to Aalok D. Shanghvi till the date of appointment as Whole-time Director of the Company.
+*** 45,000/-
+Key Management Personnel (KMP) and Relatives of KMP who are under the employment of the Company are entitled to
+post employment benefits and other long term employee benefits recognised as per Ind AS 19 - 'Employee Benefits'. As
+these employee benefits are lump sum amount provided on the basis of actuarial valuation, the same is not included above
+and there is no Share-based payments to key management personnel and relatives of KMP.
+The transactions with related parties are made on an arm's length basis. Outstanding trade balances at the year-end are
+unsecured and there have been no guarantees provided or received for any related party receivables or payables.
+Patient First. Always.
+458.6
+388.2
+381.1
+482.5
+for the year ended March 31, 2024
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+Balance outstanding as at end of the year:
+291
+(Annexure 'B')
+Receivables
+Others
+Payables
+Others
+Key management personnel
+Independent Directors
+Associates
+Security deposit given
+Others
+Security deposit received
+Others
+Loan given
+Associates
+Lease liability
+Others
+Advance (Includes capital and supply of goods/services)
+Others
+As at
+March 31, 2024
+In Million
+As at
+March 31, 2023
+642.5
+438.3
+642.5
+438.3
+FORM AOC - 1
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/ joint ventures
+* in Million
+292
+7.0
+2.
+3.
+4.
+Sun Pharmaceutical (Bangladesh) Limited
+Sun Pharmaceutical Industries, Inc.
+Sun Farmaceutica do Brasil Ltda.
+22.05.2009 BRL
+29.03.2001 BDT 0.76
+20.11.2002 USD 83.41
+16.63
+45.6
+92.7
+6.
+5. Sun Pharma De Mexico S.A. DE C.V.
+Sun Pharmaceutical Peru S.A.C.
+03.12.2002 MXN
+5.03
+5.1
+(2,550.2) 4,985.6
+1,196.1 1,747.3
+(5.8)
+1.3
+0.1
+2,477.4 3,639.0 1,116.0
+100,747.7 189,742.4 88,994.7
+7,443.1
+546.1
+(0.0)
+(0.0)
+2,148.1
+4,698.5 114,923.0
+4,687.5
+1,828.3
+329.7 127.4
+2,274.5 (1,812.5)
+499.3 58.5
+(174.3) (23.2)
+202.3
+100.00%
+72.50%
+4,087.0
+100.00%
+440.8
+99.99%
+(151.1)
+1.00
+Notes to the Consolidated Financial Statements
+12.11.2010 INR
+1.
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated
+Date of
+Sr.
+acquisition/ Reporting Closing
+Name of the Subsidiary Company
+Capital
+Reserve
+No.
+incorporation Currency
+rate
+Total
+Assets
+Total
+Liabilities
+Investment
+Other than
+Investment
+Profit/
+(Loss)
+Profit
+Turnover
+in
+of subsidiary
+before
+Taxation
+Provision
+for
+Taxation
+(Loss) Proposed
+after Dividend
+Taxation
+% of
+Shareholding
+Subsidiary
+Green Eco Development Centre Limited
+1.76
+Financial Statements
+Consolidated
+Corporate Overview
+233.2
+Sale of property, plant and equipment
+Others
+Other operating revenue/Other Income
+Others
+Receiving of service
+Others
+0.2
+4.0
+0.2
+4.0
+15.3
+14.6
+467.7
+15.3
+816.9
+1,283.9
+816.9
+1,283.5
+Associates
+0.4
+Impairment in value of loans/advance
+1,644.3
+Associates
+1,644.3
+Reimbursement of expenses (Paid)
+277.3
+55.3
+14.6
+Others
+233.2
+467.7
+Foundation for Disease Elimination and Control of India
+Patient First. Always.
+290
+Corporate Overview Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+IND AS-24 - "RELATED PARTY DISCLOSURES"
+Details of related party transaction:
+(Annexure 'B')
+Year ended
+March 31, 2024
+In Million
+Year ended
+March 31, 2023
+Purchase of goods
+Others
+Purchase of property, plant and equipment and other intangible assets
+Associates
+Others
+Revenue from contracts with customers, net of returns
+184.8
+217.4
+184.8
+217.4
+24.6
+1,817.1
+170.0
+24.6
+1,647.1
+Others
+277.3
+55.3
+Rendering of service
+9.6
+Investments
+Associates
+161.2
+56.6
+161.2
+56.6
+Remuneration/ compensation
+284.9
+306.1
+Key management personnel
+270.1*
+229.7
+Relatives of Key management personnel
+14.8
+76.4
+CSR
+652.3
+621.0
+Others
+650.0
+620.0
+Unconsolidated subsidiary
+2.3
+1.0
+Sitting Fees and Commission paid to Independent Directors
+25.7
+20.1
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+9.6
+Statutory Reports
+Others
+9.6
+664.0
+795.1
+Others
+664.0
+795.1
+Reimbursement of expenses (Received)
+142.5
+66.2
+Others
+140.4
+66.2
+Associates
+2.1
+Loan given
+Associates
+Advance Given
+Others
+207.0
+207.0
+15.9
+Lease Rental and hire charges (Income)
+94.7
+44.4
+Others
+54.6
+44.4
+Associates
+40.1
+Rent expense / payment towards lease liabilities
+9.6
+7.
+Sun Pharma De Venezuela, C.A.
+8.
+0.0
+1.6
+31,081.3 31,081.3
+78.48%
+0.0
+1.1
+2,825.0
+11.3
+3,090.1
+8.6
+265.1
+3.3
+1,738.1
+0.3
+67.4
+7,478.3 3,787.5
+0.1
+0.2
+26.1
+41.3
+513.3 3,274.2
+78.48%
+83.41
+20.09.2010 EUR 89.97
+20.09.2010 USD 83.41
+19.12.2012 USD 83.41
+78.48%
+28.
+Faststone Mercantile Company Private Limited
+01.04.2012 INR
+1.00
+0.1
+29.
+Neetnav Real Estate Private Limited
+01.04.2012 INR
+1.00
+0.1
+30.
+Realstone Multitrade Private Limited
+01.04.2012 INR
+(Refer note 16)
+Dusa Pharmaceuticals, Inc.
+27.
+Taro International Ltd.
+09.03.2012 INR
+20.09.2010 USD 83.41
+1.00
+400.5 285,513.8
+22.
+Taro Pharmaceuticals Inc.
+20.09.2010 USD
+23.
+Taro Pharmaceuticals U.S.A., Inc.
+20.09.2010 USD
+83.41
+83.41
+56.7
+31,077.3
+304,886.7
+149,671.9 156,306.9
+139,094.9 175,251.1
+12.1
+18,972.4
+6,578.3
+5,078.9
+(12,221.8) 117,088.2 129,297.9
+45,685.2 113,773.0
+11,660.2 15,852.0 (61.8) 162.4
+64,209.5 26,094.1 10,915.1 1,987.0
+778.2 27,632.8 (2,300.6) 533.5
+54,410.6 7,143.5
+100.00%
+(224.2)
+78.48%
+8,928.1
+78.48%
+(2,834.1)
+78.48%
+24.
+Taro Pharmaceuticals North America, Inc.
+20.09.2010 USD
+25.
+Taro Pharmaceuticals Europe B.V.
+26.
+1.00
+0.1
+31.
+Skisen Labs Private Limited
+0.1
+100.00%
+0.6
+0.0
+(0.1)
+(0.1)
+100.00%
+8.1
+5.8
+561.2
+3.2
+3.5
+355.1
+1,559.5
+95.0
+25.8
+69.2
+100.00%
+(0.1)
+(0.1)
+100.00%
+21.6
+(3.6)
+0.0
+(3.6)
+99.99%
+35.
+Sun Pharma Holdings
+36.
+PI Real Estate Ventures, LLC
+29.10.2013 USD 83.41 285,315.4 (171,812.0) 114,687.8
+15.07.2014 USD 83.41
+0.0
+Taro Pharmaceutical Industries Ltd. (Taro)
+0.1
+2.4
+0.0
+1,520.8
+01.04.2012 INR
+1.00
+163.6
+32.
+Softdeal Pharmaceutical Private Limited
+01.04.2012 INR
+1.00
+0.1
+33.
+Universal Enterprises Private Limited
+03.09.2012 INR
+1.00
+4.5
+34.
+Sun Pharma Switzerland Ltd.
+10.06.2013 CHF 92.54
+9.3
+3.3
+5,182.3
+2.3
+(164.2)
+959.5
+0.4
+(7.0)
+3.4
+5,788.9
+0.0
+606.5
+0.1
+0.0
+0.1
+100.00%
+1.6
+(32.8)
+(0.0)
+(32.8)
+100.00%
+0.0
+21.
+Sun Pharma Laboratories Limited
+20.
+2,677.0
+100.00%
+7,444.7
+53,444.6
+61,792.0
+11.
+Sun Pharmaceutical Industries (Australia) Pty Limited 11.03.2008
+AUD
+54.34
+8,918.1
+(6,013.9)
+12.
+Aditya Acquisition Company Ltd.
+22.04.2007 ILS
+22.67
+0.0
+13.
+Sun Pharmaceutical Industries (Europe) B.V.
+29.06.2007 EUR 89.97
+1.6
+14.
+Sun Pharmaceuticals Germany GmbH
+15.
+Sun Laboratories FZE
+11.08.2008 EUR 89.97
+13.03.2011 USD 83.41
+2.2
+1,021.8
+(0.7)
+343.6
+62.9
+(1,919.5)
+16.
+100.00%
+Sun Pharma Japan Ltd.
+734.6
+(468.7)
+Chattem Chemicals Inc.
+27.06.2006 PEN 22.43
+06.11.2011 VES 2.30
+24.11.2008 USD 83.41
+0.0
+(192.7)
+0.9
+193.6
+5.4
+5.4
+100.00%
+0.0
+(0.0)
+0.0
+0.0
+0.0
+0.0
+100.00%
+6,169.5
+5,608.3
+(561.2)
+4,849.8
+9.
+The Taro Development Corporation
+20.09.2010 USD
+10.
+Alkaloida Chemical Company Zrt.
+05.08.2005 USD
+83.41
+83.41
+6,976.0
+6,507.3
+889.5 154.9
+3,413.6 736.6
+Unconsolidated Subsidiary
+01.03.2012 JPY
+87.1
+21.5
+67.4
+99.99%
+4,327.9
+4,361.3
+11,493.6
+7,805.6
+105.9
+29.5
+76.4
+99.99%
+(2.8)
+(2.8)
+100.00%
+(595.9)
+0.5
+(596.4)
+100.00%
+1,572.0
+148.7
+51.5
+97.2
+100.00%
+910.8
+16.9
+9.6
+7.3
+100.00%
+(0.1)
+(0.1)
+100.00%
+88.9
+0.55
+3,996.1
+0.3
+900.0
+17.
+Sun Pharma Japan Technical Operations Limited
+01.06.2021 JPY
+0.55
+27.6
+1,078.1
+18.
+Sun Pharma Philippines, Inc.
+08.12.2011 PHP
+1.49
+12.9
+(517.8)
+19.
+Caraco Pharmaceuticals Private Limited
+12.01.2012 INR
+1.00
+0.1
+(0.5)
+801.8
+0.0
+5,294.1
+0.8
+1.5
+1,793.2 1,448.0
+1,968.2 1,903.1
+12,590.7 13,488.4
+7,315.1 6,328.0
+1,488.4
+382.7
+1,306.7
+0.4
+902.7
+2,389.9
+930.0
+3,705.8 1,696.3 117.2
+2,415.6 (736.9)
+1,579.1
+99.99%
+(736.9)
+100.00%
+0.3
+99.99%
+WRS Bioproducts Pty Ltd
+Remidio Innovative Solutions Private Limited
+Intact Solutions LLC
+NA
+NA
+Reason why the associate/joint venture is
+4.
+influence
+NA
+NA
+NA
+NA
+NA
+NA
+NA
+NA
+NA
+16.33%
+23.47%
+37.76%
+12.50%
+20.98%
+19.99%
+40.61%
+28.76%
+NA
+NA
+Description of how there is significant
+3.
+45.00%
+Extend of Holding %
+Venture
+29.15%
+NA
+NA
+NA
+(298.0)
+(1,192.7)
+6.2
+9.1
+0.0
+(1.7)
+Not Considered in Consolidation
+ii.
+(1.4)
+Considered in Consolidation
+i.
+Profit/(loss) for the year
+6.
+(adjusted till March 31, 2024)
+as per latest Balance Sheet
+369.5
+458.6
+34.0
+67.5
+(6.5)
+36.3
+(1,901.9)
+317.4
+112.8
+Networth attributable to Shareholding
+5.
+not consolidated
+NA
+NA
+NA
+NA
+251.4
+627,184
+475,588
+1,551.3
+8,538
+234.2
+2014
+February 13,
+Date of investment
+December 31,
+2023
+Latest Balance Sheet Date
+1.
+Medinstill LLC
+(Consolidated)
+WRS
+Tarsier Pharma
+Trumpcard
+Advisors and
+Finvest LLP
+(Consolidated)
+Generic Solar
+Power LLP
+Biotechnology
+GmbH
+No.
+Name of Associates/Joint Ventures
+Artes
+Sr.
+Associate
+Joint Venture
+SUN PHARMACEUTICAL INDUSTRIES LIMITED
+For and on behalf of the Board of Directors of
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+Consolidated
+Financial Statements
+Statutory Reports
+Corporate Overview
+* in Million
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/ joint ventures
+FORM AOC - 1
+16. Dusa Pharmaceuticals, Inc. was merged with Sun Pharmaceutical Industries, Inc w.e.f. March 31, 2024.
+March 31,
+2024
+October 09,
+2015
+(49.6)
+March 31,
+2024
+March 31,
+2017
+Ltd (Formerly
+known as Tarsius
+Pharma Ltd.)
+December 31,
+2023
+October 09,
+294.0
+192.3
+6,315
+740,071
+455,447
+361.8
+1,999
+528.3
+NA
+648.0
+364.8
+Amount of Investment in Associates/Joint
+NA
+15,853
+No.
+Shares of Associate/Joint Ventures held by
+the company on the year end
+2.
+February 20,
+2024
+December
+31, 2023
+2023
+2023
+March 31,
+2024
+February 03,
+Surgimatix
+Inc
+Remidio
+Innovative
+Solutions
+Pvt Ltd
+Private
+Limited
+March 31,
+2024
+October 17,
+March 31,
+2024
+October 19,
+2023
+2021
+2018
+December
+31, 2023
+October 03,
+Agatsa
+Software
+Ezerx Health
+Tech Private
+Limited
+Bioproducts
+Pty Ltd
+December 31,
+2023
+March 13,
+2014
+(6.0)
+7.1
+(10.8)
+Name of the related party and its
+relationship with the listed entity
+or its subsidiary, including nature of
+its concern or interest (financial or
+otherwise)
+e.
+d.
+C.
+b.
+a.
+Description
+Sr.
+No.
+Pursuant to various SEBI Circular(s) and the Act, the information required to be disclosed for the proposed related party
+transactions is as follows:
+Notice of Annual General Meeting
+298
+Patient First. Always.
+Please click here for the resolution
+None of the Directors and Key Managerial Personnel of the
+Company and their respective relatives except Mr. Sudhir
+Valia and Mr. Gautam Doshi and their relatives, by virtue of
+their respective directorship in Taro Canada and Taro USA,
+are concerned or interested in the resolution set out at Item
+No. 6 and 7.
+The Corporate Governance and Ethics Committee and the
+Audit Committee have reviewed and approved both the
+transactions. The transactions, being in the best interest
+of the Company, based on the recommendation of the
+Committees, the Board recommends the resolutions as set
+out at Item No. 6 and 7, for approval of the shareholders, as
+Ordinary Resolution(s).
+Taro Pharmaceuticals USA, Inc ("Taro USA") acts as a
+distributor for the products of Taro Pharmaceuticals
+Inc, Canada ("Taro Canada") and Taro Pharmaceutical
+Industries Limited, Israel ("Taro Israel") in the US markets.
+The transaction is in the interest of the Company as it
+brings about greater efficiency and manages the supply
+chain effectively.
+Details of the Transactions
+Further, every material related party transaction requires
+prior approval of the shareholders.
+Pursuant to Regulation 23(1) of the Listing Regulations read
+with the Company's 'Policy on Materiality of and Dealing
+with the Related Party Transactions', a material related
+party transaction is a transaction entered into individually or
+taken together with previous transactions during a financial
+year, exceeding 1,000 Crore or ten per cent of the annual
+consolidated turnover as per the last audited financial
+statements of the listed entity, whichever is lower.
+Pursuant to Regulation 2(zc) of the SEBI (Listing Obligations
+and Disclosure Requirements) Regulations, 2015
+("Listing Regulations”), related party transactions include
+a transaction of the listed entity or any of its subsidiaries
+on one hand and a related party of the listed entity or
+any of its subsidiaries on the other hand.
+Regulatory Requirement
+Item No. 6 and 7: Approval for material related party
+transactions between Taro Pharmaceutical Industries
+Limited, Israel and Taro Pharmaceuticals USA, Inc and
+between Taro Pharmaceuticals Inc, Canada and Taro
+Pharmaceuticals USA, Inc, for the financial year 2024-25.
+Please click here for the resolution
+None of the Directors or Key Managerial Personnel or
+their relatives are in anyway concerned or interested in the
+resolution as set out at Item No. 5 of this Notice.
+The Board recommends the resolution as set out at Item
+No. 5 of this Notice for approval of the shareholders as an
+Ordinary Resolution.
+The consent of the shareholders of the Company is being
+sought for ratification of the remuneration payable to the
+Cost Auditor for the financial year 2024-25 as required
+under Section 148(3) of the Act, read with Companies
+(Audit and Auditors) Rules, 2014.
+For the financial year ending March 31, 2024, shareholders
+had approved the remuneration of 2,977,500/- per
+annum plus reimbursement of out-of-pocket expenses
+and applicable taxes, to be paid to M/s K D & Co,
+Cost Accountants.
+M/s. K D & Co, Cost Accountants, have been appointed
+as the Cost Auditor by the Board of Directors of the
+Company on recommendation of the Audit Committee, for
+conducting audit of cost records and accounts maintained
+by the Company pertaining to the formulations and bulk
+drugs activities of the Company for the financial year ending
+March 31, 2025 at a remuneration of 3,126,375/- per
+annum plus reimbursement of out-of-pocket expenses and
+applicable taxes.
+Item No. 5: Ratification of the remuneration of the Cost
+Auditors for financial year 2024-25.
+Type, material terms and particulars
+of the proposed transaction
+As required under Section 102 of the Companies Act, 2013
+("the Act"), the following statements set out material facts
+about the Special Business at Item Nos. 5 to 7 of the Notice.
+Tenure of the proposed transaction
+Value of the proposed transaction
+The percentage of the listed entity's
+annual consolidated turnover, for
+the immediately preceding financial
+year, that is represented by the value
+of the proposed transaction (and for
+a RPT involving a subsidiary, such
+percentage calculated on the basis of
+the subsidiary's annual turnover on a
+standalone basis shall be additionally
+provided)
+Taro Pharmaceutical Industries Limited, Israel
+("Taro Israel") and Taro Pharmaceuticals USA,
+Inc ("Taro USA")
+Yes
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+if not, the details of factors not
+considered with the rationale for not
+considering those factors
+Yes
+Whether all factors relevant to the
+contract have been considered,
+h.
+The pricing is determined on arm's length basis The pricing is determined on arm's length basis
+both included as part of contract
+and not considered as part of the
+contract
+pricing and other commercial terms,
+Nil
+Nil
+Any advance paid or received for the
+contract or arrangement, if any
+The manner of determining the
+g.
+f.
+For Taro USA - 72.9%
+For Taro Canada - 77.2%
+For SPIL - 4.1%
+FY 2024-25 (April 1, 2024 to March 31, 2025)
+Equivalent of 20,000 Million
+Purchase and sale of pharmaceutical products.
+Taro USA acts as a distributor for Taro Canada
+products in the US markets. Taro USA is
+guaranteed an arm's length remuneration for
+its distribution and ancillary activities.
+Taro Canada and Taro USA are subsidiaries of
+Sun Pharmaceutical Industries Limited ("SPIL").
+SPIL is not a party to this transaction.
+Taro USA is a wholly-owned subsidiary of Taro
+Canada.
+Taro Pharmaceuticals Inc, Canada ("Taro
+Canada") and Taro Pharmaceuticals USA, Inc
+("Taro USA")
+Resolution at Item No. 7
+For Taro Israel - 95.3%
+For Taro USA - 54.7%
+For SPIL -3.1%
+FY 2024-25 (April 1, 2024 to March 31, 2025)
+Equivalent of 15,000 Million
+Taro Israel and Taro USA are subsidiaries of Sun
+Pharmaceutical Industries Limited ("SPIL").
+SPIL is not a party to this transaction.
+Purchase and sale of pharmaceutical products.
+Taro USA acts as a distributor for Taro Israel
+products in the US markets. Taro USA is
+guaranteed an arm's length remuneration for
+its distribution and ancillary activities.
+Taro USA is a wholly-owned subsidiary of Taro
+Israel through its wholly-owned subsidiary,
+Taro Canada.
+Details
+Resolution at Item No. 6
+15. With effect from December 21, 2023, Sun Pharmaceuticals SA (Pty) Ltd has been dissolved.
+Explanatory Statement Pursuant to Section 102 of the
+Companies Act, 2013
+SPARC, Tandalja,
+Vadodara 390 012,
+Gujarat, India
+4.
+3.
+2.
+1.
+Ordinary Business:
+NOTICE is hereby given that the Thirty-second (32nd)
+Annual General Meeting of Sun Pharmaceutical Industries
+Limited will be held on Monday, August 5, 2024 at
+3:00 p.m. IST (Indian Standard Time) through Video
+Conferencing / Other Audio-Visual Means to transact
+the following business:
+Notice of Annual General Meeting
+Notice of Annual General Meeting
+296
+295
+C. S. MURALIDHARAN
+Chief Financial Officer
+Mumbai, May 22, 2024
+(DIN: 01951829)
+Whole-time Director
+AALOK D. SHANGHVI
+(DIN: 00005588)
+Chairman and Managing Director
+DILIP S. SHANGHVI
+Company Secretary and Compliance Officer
+ANOOP DESHPANDE
+Patient First. Always.
+Part "B": Associate Companies and Joint Ventures
+(16.4)
+(69.0)
+(35.2)
+11.7
+(42.0)
+(186.8)
+(3.2)
+(28.4)
+Adoption of Standalone Financial Statements
+Anoop Deshpande
+Company Secretary and
+Compliance Officer
+(ICSI Membership No.: A23983)
+To receive, consider and adopt the audited standalone
+financial statements of the Company for the financial
+year ended March 31, 2024 and the reports of the
+Board of Directors and Auditors thereon.
+To receive, consider and adopt the audited consolidated
+financial statements of the Company for the financial
+year ended March 31, 2024 and the report of the
+Auditors thereon.
+By order of the Board of Directors
+For Sun Pharmaceutical Industries Limited,
+Registered Office:
+Date: July 1, 2024
+Place: Mumbai
+Please click here for the explanatory statement
+RESOLVED FURTHER THAT the Board of Directors of
+the Company and Key Managerial Personnel be and are
+hereby authorised to do all such acts, deeds, matters
+and things as it may deem fit and settling all such issues,
+questions, difficulties or doubts whatsoever that may
+arise and to take all such decisions as may be required
+to give effect to this resolution."
+297
+Notice of Annual General Meeting
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+"RESOLVED THAT pursuant to the provisions of
+Regulation 23(4) of the SEBI (Listing Obligations
+and Disclosure Requirements) Regulations, 2015
+as amended from time to time, the approval of the
+shareholders of the Company be and is hereby
+accorded for material related party transaction(s)/
+arrangement(s) to be entered into, individually or
+taken together with previous transactions during the
+financial year 2024-25, between Taro Pharmaceuticals
+Inc, Canada and Taro Pharmaceuticals USA, Inc,
+subsidiaries of the Company, for purchase and sale of
+pharmaceutical products, not exceeding an aggregate
+value equivalent of 20,000 Million, and that such
+transaction(s)/ arrangement(s) shall be at arm's length.
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+Approval for material related party transactions
+between Taro Pharmaceuticals Inc, Canada
+and Taro Pharmaceuticals USA, Inc for the
+financial year 2024-25.
+Please click here for the explanatory statement
+RESOLVED FURTHER THAT the Board of Directors of
+the Company and Key Managerial Personnel be and are
+hereby authorised to do all such acts, deeds, matters
+and things as it may deem fit and settling all such issues,
+questions, difficulties or doubts whatsoever that may
+arise and to take all such decisions as may be required
+to give effect to this resolution."
+"RESOLVED THAT pursuant to the provisions of
+Regulation 23(4) of the SEBI (Listing Obligations
+and Disclosure Requirements) Regulations, 2015
+as amended from time to time, the approval of the
+shareholders of the Company be and is hereby
+accorded for material related party transaction(s)/
+arrangement(s) to be entered into, individually or taken
+together with previous transactions during the financial
+year 2024-25, between Taro Pharmaceutical Industries
+Limited, Israel and Taro Pharmaceuticals USA, Inc,
+subsidiaries of the Company, for purchase and sale of
+pharmaceutical products, not exceeding an aggregate
+value equivalent of 15,000 Million, and that such
+transaction(s)/ arrangement(s) shall be at arm's length.
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+Approval for material related party transactions
+between Taro Pharmaceutical Industries Limited,
+Israel and Taro Pharmaceuticals USA, Inc for the
+financial year 2024-25.
+7.
+6.
+Please click here for the explanatory statement
+"RESOLVED THAT pursuant to the provisions of
+Section 148 and other applicable provisions, if any, of
+the Companies Act, 2013 read with the Companies
+(Audit and Auditors) Rules, 2014, including any
+statutory modification(s) or re-enactment(s) thereof,
+for the time being in force, the remuneration as
+approved by the Board of Directors and set out in
+the Explanatory Statement annexed to this Notice,
+payable to M/s. K D & Co, Cost Accountants, Firm's
+Registration No. 004076, appointed as the Cost
+Auditor of the Company to conduct the audit of
+cost records maintained by the Company for the
+financial year 2024-25, be and is hereby ratified.”
+To consider and, if thought fit, to pass the following
+resolution as an Ordinary Resolution:
+Ratification of the remuneration of the Cost Auditor
+for financial year 2024-25.
+5.
+Special Business:
+To appoint Mr. Dilip Shanghvi (DIN: 00005588), who
+retires by rotation and being eligible, has offered
+himself for re-appointment.
+Appointment of Mr. Dilip Shanghvi as a Director, liable
+to retire by rotation
+To declare Final Dividend of ₹5/- (Rupees Five only)
+per Equity Share of 1/- each (Rupee One only) for
+the financial year 2023-24.
+Declaration of Dividend
+Adoption of Consolidated Financial Statements
+1,184.4
+14. Sun Pharma New Milford Parent LLC, Sun Pharma Housatonic LLC, Sun Pharma Housatonic II LLC and Sun Pharma Housatonic III LLC are being consolidated with Sun Pharmaceutical
+Industries, Inc.
+12. 3 Skyline LLC and One Commerce drive LLC are being consolidated with Taro Pharmaceuticals U.S.A., Inc.
+5,426.2
+100.00%
+106.9
+(98.9)
+100.00%
+95.7
+45.1
+100.00%
+96.10%
+100.00%
+100.00%
+100.00%
+(2,447.8)
+96.81%
+67.50%
+100.00%
+(2,148.8)
+100.00%
+9.7
+86.16%
+(2,826.5)
+8.3
+23.6
+(185.5)
+33.3
+(2,334.3)
+(7.5)
+(2,461.3) (13.5)
+77.0 70.5
+6.5
+63.0 (81.6) 144.6
+810.9
+180.5 630.4
+(5.2) 268.5
+263.3
+140.8
+8.0
+2,619.0
+23,018.7 6,213.5 787.3
+3,726.0 3,204.7 1,455.7
+2,976.0 208.8
+1.8
+1,545.9
+16,981.7
+(7.5)
+44.8
+1,749.0
+164.0
+100.00%
+72.49%
+(229.9)
+100.00%
+(84.9)
+100.00%
+2,502.3
+856.9
+100.00%
+(443.1)
+2.7
+68.84%
+83.0
+28.4
+111.4
+(440.4)
+3,359.2
+(84.9)
+(229.9)
+1,853.5
+3,867.6
+297.2 148,914.3
+36,144.0
+100.00%
+(0.1)
+(0.1)
+2.3
+408.3
+3,226.9
+156.6
+11,040.9
+0.7
+100.00%
+3.0
+3.0
+921.2
+100.00%
+7,996.2
+5,207.6
+1,903.3
+4,389.3
+Gautam Doshi
+Pawan Kumar Goenka
+Rama Bijapurkar
+Rolf Karl Heinz Hoffmann (w.e.f. June 15, 2023)
+Sanjay Khatau Asher (w.e.f. November 01, 2022)
+d Others (Entities in which the KMP, Independent Directors and relatives of KMP and Independent Directors have control or significant influence)
+Alfa Infraprop Private Limited
+e
+f
+Makov Associates Limited (upto August 29, 2022)
+Shanghvi Finance Private Limited
+Shantilal Shanghvi Foundation
+Sidmak Laboratories (India) Private Limited
+Sun Petrochemicals Private Limited
+Sun Pharma Advanced Research Company Limited
+United Medisales Private Limited (upto March 31, 2024)
+Pharmarack Technologies Private Limited (upto February 13, 2023)
+Pharmasofttech Awacs Private Limited (upto February 13, 2023)
+Anshul Speciality Molecules Private Limited
+Aditya Medisales Limited
+Navbio Ag (w.e.f. June 15, 2023)
+Sanghvi Properties Private Limited
+SPARCLIFE Inc.
+Shantilal Sanghvi Eye Institute Medical - Sudarshan Netralay
+(Shri Nagardas Dhanji Trust)
+Associates
+Medinstill LLC
+Medinstill Development LLC
+Tarsier Pharma Ltd
+Dr. Py Institute LLC
+Independent Directors
+83.41
+Aalok D. Shanghvi (appointed as Whole-time Director w.e.f. June 01, 2023)
+с
+1,482.3
+5,969.5
+7,235.3
+Corporate Overview
+Statutory Reports
+Financial Statements
+Consolidated
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+289
+(Annexure 'B')
+IND AS-24 - “RELATED PARTY DISCLOSURES"
+Names of related parties where there are transactions and description of relationships
+a
+Key Management Personnel (KMP)
+Dilip Shantilal Shanghvi
+Israel Makov
+Kalyanasundaram lyer Natesan Subramanian
+Sailesh Trambaklal Desai
+Sudhir Vrundavandas Valia
+Aalok D. Shanghvi
+Managing Director
+(Chairman and Managing Director w.e.f May 22, 2024)
+Chairman and Non-Executive Director
+(Non-Independent) (upto August 29, 2022)
+Whole-time Director (upto February 13, 2023)
+Whole-time Director (upto March 31, 2024)
+Non-Executive Director and Non-Independent Director
+Whole-time Director (w.e.f. June 01, 2023)
+b
+Relatives of Key Management Personnel
+Vidhi Shanghvi
+344.4
+1,506.2
+9.6
+1,161.8
+11.05.2023 INR 1.00
+02.02.2024 AED 22.71
+Vivaldis Health and Foods Private Limited
+Sun Pharma Middle East FZE LLC
+83.
+82.
+78.48%
+0.0
+0.0
+100.00%
+99.99%
+(0.0)
+(0.0)
+0.2
+(0.0)
+0.2
+83.41
+01.01.2024 USD 83.41
+05.02.2024 USD 83.41
+81. Taro Pharma Corporation, Inc.
+Libra Merger Limited
+80.
+06.03.2023 USD
+known as The Proactiv Company Corporation)
+Concert Pharma Ireland Limited
+79.
+78.48%
+136.9
+136.9
+435.1
+150.8
+952.6
+801.8
+83.41
+28.02.2022 USD
+4.3
+Alchemee Skincare Corporation (Formerly
+207.7
+85.0
+11. With effect from August 15, 2023 Concert Pharma U.K. Limited has been dissolved.
+10. With effect from July 14, 2023 Concert Pharmaceuticals Securities Corp. has been dissolved.
+9. Concert Pharmaceuticals, Inc. merged with Sun Pharmaceutical Industries, Inc. w.e.f. March 31, 2023
+With effect from November 23, 2023 Sun Pharma Global FZE has been dissolved.
+8.
+7. Foliage Merger Sub, Inc. merged with Concert Pharmaceuticals, Inc. w.e.f. March 06, 2023
+With effect from May 23, 2022, OOO "Sun Pharmaceutical Industries" Limited has been dissolved.
+6.
+5. Books of accounts and other related records/documents of the overseas subsidiaries of the Zenotech Laboratories Limited were missing and due to non-availability of those records/
+information, Zenotech Laboratories Limited is unable to prepare consolidated accounts.
+4. Foundation for Disease Elimination and Control of India (FDEC), a wholly owned subsidiary incorporated in India on September 21, 2016 by the parent company as part of its Corporate
+Social Responsibility (CSR) initiative is a Section 8 company not considered for consolidation since it can apply its income for charitable purposes only and can raise funds/contribution
+independently.
+3.
+2. In respect of entity at Sr. Nos. 5, 6, 39, 57, 65, 73, the reporting date is as of December 31, 2023 and different from the reporting date of the parent company.
+In respect of entity at Sr. No. 80 to 83 has been incorporated/ acquired during the year ended March 31, 2024.
+Consolidated
+Financial Statements
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+1. '0.0' represents amount less than 0.05 Million and rounded off.
+Note:
+100.00%
+(0.8)
+60.11%
+74.0
+25.3
+99.3
+(0.8)
+5.9
+10.7
+(0.9)
+5.7
+604.4
+297.0
+13. The above does not include Taro Pharmaceutical Laboratories Inc. and 2 Independence Way LLC as they have no operation and does not have any Assets, Liabilities or Equity as on the
+close of their financial year.
+78.
+11.4
+in
+Turnover
+Investment
+Other than
+Investment
+Total
+Total
+Assets Liabilities
+rate
+incorporation Currency
+No.
+Reserve
+Capital
+Name of the Subsidiary Company
+acquisition Reporting Closing
+Sr.
+Date of
+for the year ended March 31, 2024
+Notes to the Consolidated Financial Statements
+294
+in Million
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/ joint venture
+FORM AOC - 1
+23
+293
+Patient First. Always.
+78.48%
+100.00%
+(3.3)
+111.7
+0.4
+(2.9)
+(48.7) (160.4)
+72.2
+6,249.0
+5.6
+of subsidiary
+78.48%
+Profit/
+(Loss)
+before
+Taxation
+Profit
+(11.4)
+83.41
+28.02.2022 USD
+The Proactiv Company Holdings, Inc. (Formerly
+known as Galderma Holdings, Inc.)
+77.
+78.48%
+78.48%
+70.2
+43.6
+(34.5)
+(45.9) (11.4)
+113.8
+1,320.9
+65.8
+206.4
+284.2
+77.8
+0.55
+28.02.2022 JPY
+The Proactiv Company KK
+76.
+542.1
+476.3
+0.55
+28.02.2022 JPY
+Proactiv YK
+75.
+Subsidiary
+% of
+Shareholding
+after Dividend
+Taxation
+/ (Loss) Proposed
+Provision
+for
+Taxation
+3,144.6
+100.00%
+(2,010.0)
+2.5 (3,835.3)
+1.00
+1,062.1
+295.2
+(0.4)
+0.1
+610.3
+1.00
+1.00
+4,280.1
+44,464.0
+24,041.1
+107,132.4
+18,381.0
+34,539.7
+2,733.9
+43,542.8
+83.41
+0.3
+0.90
+64,596.5
+83.41
+366.7 2,408.5
+7,208.1
+138.5
+452.5
+1.00
+7,921.3
+4,396.6
+1,207.8
+41,820.3
+698.8 (2,818.2)
+1,952.5
+10,064.6
+(1,054.2)
+1,385.3
+6,634.5
+9,166.3
+533.5
+2,075.9
+477.2
+3,718.1
+45.6
+0.76
+3,577.1
+(293.0)
+2.5
+1.00
+44,066.8
+1.5
+100.00%
+18.11
+2,901.0
+19.9
+83.41
+1,456.2
+(15.2)
+263.6
+2.29
+1,076.7
+(3,322.3)
+2.4
+0.06
+2,402.8
+(244.0)
+271.7
+89.8
+20.92
+2,289.0
+105.24
+(23.9)
+83.41
+61.55
+83.41
+0.90
+1,064.3
+147.1
+90.0
+(322.6)
+1,741.3
+54.34
+5,878.6
+(1,645.5)
+288.8
+16.63
+3,293.0
+2,669.3
+146.5
+17.65
+1,357.1
+733.6
+8,424.1
+(29,941.7)
+10,361.8
+(31,478.4)
+1,058.2
+(32,391.3)
+1,642.5
+89.97
+1,134.6
+27.4
+38.6
+100.00%
+2,223.8
+831.7
+2,518.4
+57.0
+3.2
+53.8
+100.00%
+518.1
+(284.2)
+(284.2)
+100.00%
+0.8
+(0.9)
+(0.9)
+100.00%
+4,899.7
+3,871.9
+50.6
+125.2
+10.8
+844.5
+11.55
+11.6
+(11.9)
+88N73788835888899XXXXXXg3J83F22
+822.0
+728.9
+56.2
+18.2
+38.0
+6,409.5
+5,939.7
+281.9
+65.5
+216.4
+100.00%
+100.00%
+155.4
+61.4
+11.2
+7.7
+100.00%
+428.5
+(76.8) (5.2)
+(71.6)
+100.00%
+42.2
+14.1
+(8.3) (0.3)
+(8.0)
+100.00%
+357.8
+5,336.4
+98.0
+24.1
+73.9
+100.00%
+176.4
+847.6
+346.4
+117.5
+70.00%
+41.3
+2,603.6
+3,882.7
+94.0 (110.8)
+204.8
+100.00%
+6,551.6
+8,402.3
+488.5 (50.1)
+538.6
+100.00%
+653.4
+597.2
+440.6
+2,345.5
+44.2 (43.2)
+132.8
+87.4
+100.00%
+91.5
+1,579.2
+(319.9)
+Statutory Reports
+Corporate Overview
+FORM AOC - 1
+Consolidated
+Financial Statements
+Notes to the Consolidated Financial Statements
+for the year ended March 31, 2024
+Date of
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+PART "A": Subsidiaries
+100.00%
+101.2
+101.2
+100.00%
+* in Million
+(67.3)
+(67.1)
+3.6
+250.2
+0.2
+Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013 with the Rule 5 of Companies (Accounts) Rules, 2014
+Statement containing salient features of the financial statement of subsidiaries / associate companies/ joint venture
+25. The Company's RTA has launched 'SWAYAM', a
+secure, user-friendly web-based application, that
+empowers shareholders to effortlessly access
+various services. The application can be accessed
+at https://swayam.linkintime.co.in.
+Key features of the portal are as follows.
+• User-friendly interface and two-factor
+authentication (2FA) at login.
+• Generate and track service requests / complaints
+• Track Corporate Actions like Dividend / Interest /
+Bonus / Split.
+• Access to PAN linked accounts, Company wise
+holdings and security valuations.
+• Raise request for unpaid amounts.
+• View entire holdings and status of
+corporate benefits.
+• Self-service portal for securities held in demat
+mode and physical securities, whose folios are
+KYC compliant.
+Brief resume of the Director
+Directorship held in other
+companies (excluding foreign
+companies and section
+8 companies)
+Communication with RTA
+PHARMA
+17. The Company is required to deduct tax at source
+from dividend paid to shareholders at the prescribed
+rates. The details of deduction of tax on dividend and
+procedure for submission of documents in that regard
+are available at https://sunpharma.com/wp-content/
+uploads/2024/06/TDS-Annexure-FY23-24.pdf.
+Scan the QR Code to
+view the procedure for
+submission of documents
+SUN
+PHARMA
+General Shareholder Information
+Speaker Registration
+18. Shareholders who would like to express their views /
+ask questions during the AGM may register themselves
+as a speaker by sending their request, mentioning their
+name, demat account number / folio number, e-mail
+id and mobile number, at secretarial@sunpharma.com
+latest by August 1, 2024.
+19. Only registered speakers will be allowed to express
+their views / ask questions during the meeting for a
+maximum time of 3 (three) minutes each, once the floor
+is open for shareholder queries.
+20. The Company reserves the right to restrict the number
+of speakers and number of questions depending on the
+availability of time during the meeting.
+302
+21. The shareholders who do not wish to speak during
+the AGM but have queries may send their queries,
+mentioning their name, demat account number
+/ folio number, e-mail id and mobile number, to
+secretarial@sunpharma.com. These queries will be
+suitably replied to by the Company by e-mail.
+Dispatch of Annual Report through Electronic Mode
+22. The Notice of AGM along with the Annual Report
+for FY24 is being sent only through electronic mode
+to those shareholders whose e-mail addresses are
+registered with the Company's RTA / Depositories.
+Hard copies of the Annual Report shall be sent to
+shareholders upon request only.
+23. Shareholders may note that the Notice of the AGM
+along with the Annual Report for FY24 is also available
+for download on the website of the Company at
+www.sunpharma.com, on the websites of the Stock
+Exchanges, i.e. BSE Limited and National Stock
+Exchange of India Limited at www.bseindia.com and
+www.nseindia.com respectively, and on the website of
+CDSL at www.evotingindia.com.
+24. For receiving all communication (including Notice and
+Annual Report) from the Company electronically, the
+shareholders are requested to update their e-mail
+addresses with the Depository / RTA.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Notice of Annual General Meeting
+305
+We encourage shareholders to register on the portal
+and avail various services.
+26. Shareholders can also use the chatbot developed by the
+RTA 'IDIA' to ask questions and get information about
+queries by logging in at www.linkintime.co.in.
+Updating KYC (Physical Shareholders)
+27. Shareholders holding shares in physical form can
+update their PAN, KYC details, nomination, contact
+details, bank A/c details and specimen signature for
+the respective folios by submitting the forms, as may
+be applicable, to the Company's RTA. The prescribed
+form(s) are available at https://sunpharma.com/
+mandatory-kyc-update/ and on RTA's website at
+https://liiplweb.linkintime.co.in/KYC-downloads.html.
+As per clause e above
+As per clause e above
+Not Applicable
+US is the largest market and Taro USA sources
+its products from various manufacturers
+including Taro Canada, a group company.
+Not Applicable
+Mr. Gautam Doshi, Director of SPIL, is a
+Director of Taro USA.
+Mr. Sudhir Valia, Director of SPIL, is a Director
+of Taro USA and Taro Canada.
+Resolution at Item No. 7
+US is the largest market and Taro USA sources
+its products from various manufacturers
+including Taro Israel, a group company.
+Not Applicable
+Details
+Mr. Sudhir Valia and Mr. Gautam Doshi,
+Directors of SPIL, are Directors of Taro USA.
+Resolution at Item No. 6
+A statement that the valuation or
+other external party report, if any
+such report has been relied upon
+by the listed entity in relation to the
+proposed transaction will be made
+available through the registered
+email address of the shareholders
+Percentage of the counter-party's
+annual consolidated turnover that
+is represented by the value of the
+proposed RPT on a voluntary basis
+Any other information that may be
+relevant
+(iii) applicable terms, including
+covenants, tenure, interest
+rate and repayment schedule,
+whether secured or unsecured;
+if secured, the nature of security
+the purpose for which the funds
+will be utilised by the ultimate
+beneficiary of such funds
+pursuant to the RPT
+• tenure;
+⚫ cost of funds; and
+• nature of indebtedness;
+(ii) where any financial indebtedness
+is incurred to make or give
+loans, intercorporate deposits,
+advances or investments,
+(i) details of the source of funds in
+connection with the proposed
+transaction
+If the transaction relates to any loans,
+inter-corporate deposits, advances
+or investments made or given by the
+listed entity or its subsidiary:
+Justification as to why the RPT is in
+the interest of the listed entity
+if any
+Name of the director or key
+managerial personnel who is related,
+n.
+Patient First. Always.
+SUN
+300
+Profile of Directors
+Scan the QR Code to view the forms
+for KYC Updation
+SUN
+PHARMA
+Transfer to Investor Education and Protection Fund
+28. Pursuant to Section 124 of the Act, the dividends
+that are unclaimed for a period of seven years shall be
+transferred to the Investor Education and Protection
+Fund ("IEPF"). Shares on which the dividend remains
+unclaimed for seven consecutive years shall also be
+transferred to IEPF.
+29. The unclaimed dividend for the financial year 2016-17
+is due for transfer to IEPF on October 28, 2024. Hence,
+shareholders are requested to promptly claim their
+unpaid dividend.
+30. The information regarding the unclaimed dividends and
+shares already transferred, and due to be transferred,
+to IEPF Authority, is available on the website of
+the Company, alongwith the procedure to claim
+the same from IEPF Authority and can be accessed
+at www.sunpharma.com under head "Investor"
+sub-head "Shareholder Information".
+Scan the QR Code to view the
+Procedure for claiming unpaid
+amounts and shares from IEPF
+Exchange of Old Share Certificates
+SUN
+PHARMA
+31. The shareholders of erstwhile Tamilnadu Dadha
+Pharmaceuticals Limited; erstwhile Gujarat Lyka
+Organics Limited; erstwhile Phlox Pharmaceuticals
+Limited and erstwhile Ranbaxy Laboratories Limited;
+who have not yet sent their respective share
+certificates for exchange with the share certificates of
+Sun Pharmaceutical Industries Limited, are requested
+to do so at the earliest, provided their shares are not
+already transferred to IEPF, since share certificates of
+the former entities are no longer tradable / valid.
+32. The shareholders may be aware that the equity shares
+of the Company had been subdivided from 1 (One)
+equity share of 5/- each to 5 (Five) equity shares of
+1/- each on November 29, 2010. The shareholders
+who have yet not sent their share certificates of
+*5/- each of the Company for exchange with new
+equity shares of ₹1/- each are requested to do so
+at the earliest, provided their shares are not already
+transferred to IEPF, since the old share certificates of
+*5/- each are no longer tradable.
+Dematerialisation of Physical Share Certificates
+33. It is now mandated that only the shares held in
+dematerialised form shall be permitted for transfer,
+and further, the shares shall be issued in dematerialised
+form while processing requests for transmission /
+transposition/ duplicate certificates, etc. Hence,
+the shareholders are requested to get their physical
+shares dematerialised as soon as possible.
+Patient First. Always.
+Notes
+Notes
+Notes
+Age
+Particulars
+The details of Board and Committee Meetings attended by the Director, as applicable, during FY24 are stated in the
+Corporate Governance Report which forms part of the Annual Report.
+As required under Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
+Secretarial Standard on General Meetings issued by the Institute of Company Secretaries of India (SS - 2), the particulars
+of Director who is proposed to be reappointed at this AGM are given below:
+Notice of Annual General Meeting
+Scan the QR Code to view the Form
+Shareholders facing any technical issue in login can contact NSDL helpdesk by sending a request at
+evoting@nsdl.co.in or call at 022 4886 7000 and 022 2499 7000.
+Association of the Company, any member can waive /
+forgo the right to receive any dividend. A member, if so
+wishes, can waive/ forgo the right to receive dividend
+for any financial year, by submitting the duly filled
+prescribed form to the Company's RTA on or before
+the Record Date. The prescribed form is available at
+https://sunpharma.com/wp-content/uploads/2023/06/
+• The shareholders who wish to complete e-voting and
+attend the AGM shall login as per the 'Procedure for
+Login'.
+• The shareholders can join the AGM in the VC /
+OAVM mode 30 minutes before the scheduled time
+of the commencement of the meeting. The facility
+13. Procedure for Login
+Individual Shareholders holding securities in Demat mode with CDSL
+(1) Users who have opted for CDSL Easi / Easiest facility, can login through
+their existing user id and password. Option will be made available to
+reach e-voting page without any further authentication. The users to
+login to Easi/Easiest are requested to visit www.cdslindia.com and click
+on Login icon and select New System Myeasi Tab.
+(2) After successful login the Easi/Easiest user will be able to see the
+e-voting option for eligible companies where the e-voting is in
+progress as per the information provided by company. On clicking
+the e-voting option, the user will be able to see e-voting page of the
+e-voting service provider for casting your vote during the remote
+e-voting period or joining virtual meeting & voting during the meeting.
+Additionally, there is also link provided to access the system of
+e-voting Service Provider i.e. CDSL, so that the user can visit the
+e-voting service provider's website directly.
+(3) If the user is not registered for Easi / Easiest, option to register is
+available at www.cdslindia.com and click on Login icon and select New
+System Myeasi Tab and then click on registration option.
+(4) Alternatively, the user can directly access e-voting page by providing
+Demat Account Number and PAN No. from an e-voting link available
+on www.cdslindia.com home page. The system will authenticate the
+user by sending OTP on registered Mobile & E-mail as recorded in
+the Demat Account. After successful authentication, user will be able
+to see the e-voting option where the e-voting is in progress and also
+able to directly access the system of the respective e-voting service
+provider, i.e. CDSL.
+of participation at the AGM through VC / OAVM
+will be made available to at least 1,000 shareholders
+on first come first served basis. This will not
+include large shareholders (Shareholders holding
+2% or more shareholding), Promoters, Institutional
+Investors, Directors, Key Managerial Personnel, the
+Chairpersons of the Audit Committee, Nomination
+and Remuneration Committee and Stakeholders
+Relationship Committee, Auditors etc.
+12. General instructions
+• Those shareholders who have joined the AGM and
+have not cast their vote on the resolutions through
+remote e-voting and are otherwise not barred from
+doing so, shall be eligible to vote through e-voting
+system during the AGM. Those shareholders who
+have voted through remote e-voting will be eligible
+to attend the AGM. However, they will not be
+eligible to vote at the AGM.
+(3) Visit the e-Voting website of NSDL. Open web browser by typing
+the following URL: https://www.evoting.nsdl.com/ either on a
+Personal Computer or on a mobile. Once the home page of e-Voting
+system is launched, click on the icon "Login" which is available under
+'Shareholder/Member' section. A new screen will open. You will have to
+enter your User ID (i.e. your sixteen digit demat account number hold
+with NSDL), Password/OTP and a Verification Code as shown on the
+screen. After successful authentication, you will be redirected to NSDL
+Depository site wherein you can see e-voting page. Click on company
+name - Sun Pharmaceutical Industries Limited or e-voting service
+provider name - CDSL and you will be redirected to CDSL's website for
+casting your vote during the remote e-voting period or joining virtual
+meeting & voting during the meeting
+Note: Shareholders who are unable to retrieve User ID / Password are advised to use Forget User ID and Forget Password option available at
+abovementioned website.
+You can also login using the login credentials of your demat account through your Depository Participant registered with NSDL / CDSL for
+e-voting facility. After Successful login, you will be able to see e-voting option. Once you click on e-voting option, you will be redirected to
+NSDL / CDSL website after successful authentication, wherein you can see e-voting feature. Click on company name - Sun Pharmaceutical
+Industries Limited or e-voting service provider name - CDSL, and you will be redirected to CDSL website for casting your vote during the
+remote e-voting period or joining virtual meeting & voting during the meeting.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Notice of Annual General Meeting
+303
+Physical shareholders and shareholders other than individual holding in demat form
+(1) Log on to the e-voting website - www.evotingindia.com
+Individual Shareholders holding securities in demat mode with NSDL
+(1) If you are already registered for NSDL IDEAS facility, please visit
+the e-Services website of NSDL. Open web browser by typing
+the following URL: https://eservices.nsdl.com either on a Personal
+Computer or on a mobile. Once the home page of e-Services is
+launched, click on the "Beneficial Owner" icon under "Login" which is
+available under 'IDEAS' section. A new screen will open. You will have
+to enter your User ID and Password. After successful authentication,
+you will be able to see e-voting services. Click on "Access to e-voting"
+under e-voting services and you will be able to see e-voting page. Click
+on company name - Sun Pharmaceutical Industries Limited or e-voting
+service provider name - CDSL and you will be re-directed to e-voting
+service provider website for casting your vote during the remote
+e-voting period or joining virtual meeting & voting during the meeting.
+(2) If the user is not registered for IDEAS e-Services, option to register
+is available at https://eservices.nsdl.com. Select "Register Online for
+IDEAS "Portal or click at https://eservices.nsdl.com/SecureWeb/
+IdeasDirectReg.jsp.
+(2) Click on "Shareholders" module.
+11. The remote e-voting period begins on Thursday,
+August 1, 2024 at 09:00 a.m. and ends on Sunday,
+August 4, 2024 at 05:00 p.m. During this period,
+shareholders of the Company holding shares either
+in physical form or in dematerialised form, as on
+the Cut-off Date, will be eligible to cast their vote
+electronically. The remote e-voting module shall be
+disabled by CDSL for voting thereafter.
+302
+The skills and capabilities
+required for the role and the
+manner in which the proposed
+person meets such requirements
+Date of First appointment on
+the Board
+304
+304
+304
+304
+305
+305
+305
+Notice of Annual General Meeting
+305
+August 1, 2024 at 9:00 am
+August 4, 2024 at 5:00 pm
+The Scrutinizer shall submit his report to the Chairman
+of the Meeting or any person authorised by him in
+writing. The result declared along with the Scrutinizer's
+Report will be submitted to BSE Limited and National
+Stock Exchange of India Limited, and will be placed on
+the Company's website at www.sunpharma.com and
+on the website of CDSL at www.evotingindia.com, as
+well as displayed on the notice board at the Registered
+Office and Corporate Office of the Company, within
+the prescribed time.
+Relevant registers as required under the Act will be
+available for inspection electronically upto the date
+of the AGM, and during the meeting hours. Those
+shareholders who wish to inspect the aforesaid
+documents electronically may send their requests to
+secretarial@sunpharma.com, mentioning their name,
+demat account number / folio number, e-mail id and
+mobile number.
+Relevant registers shall also be available for physical
+inspection at the registered office of the Company,
+on all working days, except Saturdays and Sundays,
+between 11:00 a.m. IST and 1:00 p.m. IST, upto the
+date of the AGM.
+Attendance and E-voting
+10. The voting rights of shareholders shall be in proportion
+to their shares in the paid-up share capital of the
+Company as on the Cut-off Date for e-voting, i.e.,
+July 29, 2024. A person who is not a shareholder as
+on the Cut-off Date should treat this Notice solely
+for information purposes. Those who acquire equity
+shares of the Company and become shareholders of
+the Company after the Notice is sent, and hold equity
+shares as on the Cut-off Date, can login to attend /
+vote at the AGM, in the manner as detailed under
+'Procedure for Login'.
+Patient First. Always.
+305
+Dividend-Waiver-Form.pdf.
+(3) Now enter your User ID
+(b) For NSDL: 8 Character DP ID followed by 8 Digits Client ID
+(3) After receiving the login details a Compliance User should be created using the admin login and password. The Compliance User would be
+able to link the account(s) for which they wish to vote on.
+(4) The list of accounts linked in the login should be mailed to helpdesk.evoting@cdslindia.com and on approval of the accounts they would
+be able to cast their vote.
+(5) A scanned copy of the board resolution and power of attorney (POA) which they have issued in favour of the Custodian, if any, should be
+uploaded in PDF format in the system for the scrutinizer to verify the same.
+(6) Alternatively, non-individual shareholders are required to send the relevant board resolution / authority letter etc., to the Scrutinizer and
+to the Company at the e-mail address viz; secretarial@sunpharma.com, if they have voted from individual tab & not uploaded same in the
+CDSL e-voting system for the Scrutinizer to verify the same.
+Patient First. Always.
+304
+Notice of Annual General Meeting
+Individual Shareholders holding
+securities in Demat mode with CDSL
+Individual Shareholders holding
+securities in Demat mode with NSDL
+(2) A scanned copy of the registration form bearing the stamp and sign of the entity should be e-mailed to helpdesk.evoting@cdslindia.com.
+Helpdesk details
+m.
+In case you have any queries or issues regarding attending AGM & e-voting from the e-voting system, you may refer the Frequently Asked
+Questions ("FAQs") and e-voting manual available at www.evotingindia.com, under “HELP' section.
+All grievances connected with the facility for voting by electronic means may be addressed to Mr. Rakesh Dalvi, Sr. Manager, (CDSL) Central
+Depository Services (India) Limited, A Wing, 25th Floor, Marathon Futurex, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel (East),
+Mumbai - 400013 or send an e-mail to helpdesk.evoting@cdslindia.com or call at toll free no.: 1800 22 55 33.
+Final Dividend
+14. The Board of Directors at its Meeting held on May 22,
+2024, recommended a Final Dividend of 5/- (Rupees
+Five only) per equity share of 1/- (Rupee One only)
+each of the Company for the year ended March 31,
+2024 and the same, if approved at the AGM, will be
+paid in accordance with the timelines under the Act.
+The final dividend shall be paid to such shareholders
+whose names stand in the Register of Shareholders as
+beneficial owners as on the Record Date.
+Shareholders are requested to get their KYC details
+updated with the Depositories for the shares held in
+demat form and with Link Intime India Private Limited,
+the Company's Registrar and Transfer Agent ("RTA") for
+the shares held in physical form, so as to receive the
+final dividend for the financial year 2023-24, directly
+through electronic credit.
+15. The Record Date for the payment of final dividend is
+close of business hours on July 12, 2024 ("Record Date").
+16. Pursuant to the Clause 142 of the Articles of
+Shareholders facing any technical issue in login can contact CDSL helpdesk by sending a request at
+helpdesk.evoting@cdslindia.com or call at toll free no.: 1800 22 55 33.
+(a) For CDSL: 16 digits beneficiary ID
+(1) Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on to www.evotingindia.com and
+register themselves in the "Corporates" module.
+You can also take a print of the votes cast by clicking on “Click here to print" option on the Voting page.
+(c) Shareholders holding shares in Physical Form should enter Folio Number registered with the Company.
+(4) Next enter the Image Verification as displayed and Click on Login
+If a demat account holder had logged on to www.evotingindia.com and voted on an earlier e-voting of any company, then your existing password is to
+be used.
+If a demat account holder has forgotten the login password then Enter the User ID and the image verification code and click on Forgot Password &
+enter the details as prompted by the system.
+Nature of expertise in specific
+functional areas
+If you are a first time user follow the steps given below:
+Option 1 - PAN
+Option 2 Dividend
+Bank Details OR
+Additional instructions for non-individual shareholders and custodians applicable for remote e-voting only.
+Date of Birth (DOB)
+Shareholders who have not updated their PAN with the Company / Depository Participant are requested to use the
+sequence number / e-voting code sent by Company / RTA or contact the Company / RTA.
+Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded in your demat account or in the
+company records in order to login.
+If both the details are not recorded with the depository or company please enter the member id / folio number in the
+Dividend Bank details field as mentioned in Step 3 above.
+After entering these details appropriately, click on "SUBMIT" tab.
+Shareholders holding shares in physical form will then directly reach the Company's selection screen. These login details can be used only for
+e-voting on the resolutions contained in this Notice. However, shareholders holding shares in demat form will now reach 'Password Creation'
+menu wherein they are required to mandatorily enter their login password in the new password field. These login details can be used by the
+demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting
+through CDSL platform.
+(1) Click on the EVSN 240619004 for Sun Pharmaceutical Industries Limited.
+(2) On the voting page, you will see "RESOLUTION DESCRIPTION" and against the same the option "YES/NO" for voting. Select the option
+YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.
+(3) Click on the "RESOLUTIONS FILE LINK" if you wish to view the entire Resolution details.
+(4) After selecting the resolution you have decided to vote on, click on "SUBMIT". A confirmation box will be displayed. If you wish to confirm
+your vote, click on "OK", else to change your vote, click on "CANCEL" and accordingly modify your vote. Once you "CONFIRM" your vote
+on the resolution, you will not be allowed to modify your vote.
+Enter your 10 digit alpha-numeric PAN issued by Income Tax Department (Applicable for both demat shareholders as
+well as physical shareholders)
+I.
+Not Applicable
+j.
+Final Dividend
+General Shareholder Information
+Speaker Registration
+Dispatch of Annual Report through Electronic Mode
+Communication with RTA
+Updating KYC (Physical Shareholders)
+Transfer to Investor Education and Protection Fund
+Exchange of Old Share Certificates
+Dematerialisation of Physical Share Certificates
+E-voting Period
+Start of remote e-voting period:
+End of remote e-voting period:
+Statutory Notes
+1.
+Pursuant to various circulars issued by the Ministry
+of Corporate Affairs ("MCA") and SEBI, and other
+applicable provisions of the Companies Act, 2013
+("the Act") and SEBI (Listing Obligations and Disclosure
+Requirements) Regulations, 2015 (“Listing Regulations")
+(together referred to as “applicable provisions"), the
+32nd Annual General Meeting ("AGM" / "Meeting") of
+the Company is being held through video conferencing
+("VC") or other audio-visual means ("OAVM").
+7.
+2.
+Shareholders will be able to attend the AGM
+through VC/OAVM or view the live webcast by
+following instructions detailed in 'Attendance and
+E-voting' section.
+8.
+3.
+k.
+5.
+6.
+Pursuant to the applicable provisions, Central
+Depository Services (India) Limited ("CDSL") has been
+appointed as the authorised e-voting agency to provide
+the facility of casting votes by a member using remote
+e-voting as well as the e-voting system during the AGM.
+Since this AGM is being held through VC / OAVM,
+the facility to appoint proxy to attend and cast vote
+for the shareholders is not available for this AGM.
+However, pursuant to Section 112 and Section 113 of
+the Act, representatives of the shareholders such as the
+President of India or the Governor of a State or body
+corporate can attend the AGM through VC / OAVM
+and cast their votes through e-voting.
+The attendance of the shareholders attending the AGM
+through VC/OAVM will be counted for the purpose of
+ascertaining the quorum under Section 103 of the Act.
+The Board of Directors have appointed Mr. Chintan
+Goswami, and failing him, Mr. Alpesh Panchal, Partners
+of KJB & Co. LLP, Practising Company Secretaries, as
+the Scrutinizer.
+9.
+Page Nos.
+Procedure for Login
+301
+Attendance and E-Voting
+Index
+Membership / Chairmanships
+of Committees of other public
+Companies
+Listed entities from which the
+person has resigned in the past
+three years
+Inter-se Relationship between
+Directors
+No. of Shares held in the
+Company (singly or jointly as first
+holder) as on date of this Notice
+Mr. Dilip Shanghvi
+69
+Mr. Dilip Shanghvi is the Founder, Chairman and Managing Director of Sun Pharmaceutical Industries
+Limited. He is also the Chairman of Sun Pharma Advanced Research Company Ltd., which is engaged in
+R&D of new innovative drugs and delivery technologies.
+He was awarded the Padma Shri in 2016 for his distinguished contribution to the Indian Trade & Industry.
+He is part of the Economic Advisory Council formed by the Government of Maharashtra to achieve rapid
+and comprehensive development in the state. The Government of Gujarat appointed him as the Chairman
+of Gujarat Biotechnology University in 2022.
+Mr. Shanghvi has been conferred with many awards and recognitions. In 2023, 2021 & 2020, India's
+leading magazine, India Today included him in its annual Power List of 50 influential personalities in India.
+Some of the other awards and recognitions bestowed on him include: Moneycontrol Lifetime Achievement
+Award (2023), All India Management Association (AIMA) Entrepreneur of the Year (2017), NDTV Business
+Leader of the Year (2015), Forbes Entrepreneur for the year (2014), Economic Times' Business Leader
+of the Year (2014), CNN IBN's Indian of the Year - Business (2011), Business India's Businessman of the
+Year (2011) and Ernst and Young's World Entrepreneur of the Year (2011). He has also been awarded the
+Economic Times' Entrepreneur of the Year (2008), Business Standard's CEO of the Year (2008) and CNBC
+TV 18's First Generation Entrepreneur of the Year (2007)
+He is a former President of Indian Pharmaceutical Alliance (IPA) and has also served as the chairman of
+the Board of Governors of Indian Institute of Technology (Bombay). He is a former trustee of the Rhodes
+Scholarship Program at Oxford University.
+In 2019, he was conferred with an honorary doctorate by the Tel Aviv University, Israel's largest and most
+comprehensive institution of higher learning.
+Mr. Shanghvi has played a vital role in the globalisation of the Indian pharmaceutical industry and
+continues to inspire generations of entrepreneurs in their journey of success.
+Finance and Accounts, Governance, Pharma Industry Knowledge, Risk Management and
+General Management
+Strategic Thinking, Planning, Problem Solving, Decision Making, Leadership, Analytical Approach
+Mr. Shanghvi has vast experience in pharma industry and fulfils the above-mentioned skills required
+for his role in the Company
+March 1, 1993
+Sun Pharma Advanced Research Company Limited
+Alfa Infrapop Private Limited
+Sun Petrochemicals Private Limited
+Aditya Clean Power Ventures Private Limited
+Sun Pharma Advanced Research Company Limited
+• Risk Management Committee - Chairman
+• Corporate Social Responsibility Committee - Member
+• Fund Management Committee - Member
+• Securities Allotment Committee Member
+None
+He is the father of Mr. Aalok Shanghvi, Whole-time Director of the Company; and brother-in-law of Mr.
+Sudhir Valia, Non-Executive Director of the Company
+230,385,155 Equity Shares
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Notice of Annual General Meeting
+301
+Notes
+Statutory Notes
+301
+4.
+i.
+No.
+Description
+Sr.
+299
+Notice of Annual General Meeting
+India
+Israel
+Taro Pharmaceuticals Inc.,
+Chemistry and Discovery
+Research Israel, 14 Hakitor
+Taro Pharmaceuticals Inc.,
+130 East Drive, Brampton,
+Canada
+3.
+Ontario L6T 1C1, Canada.
+Street, P.O. Box 10347 Haifa Bay,
+2624761, Israel.
+Gurugram - 122 015, Haryana.
+26. Taro Pharmaceutical Industries Ltd.,
+Haifa Bay, Israel
+27. Alkaloida Chemical Company Zrt.,
+Tiszavasvari, Kabay, Hungary
+4.
+25. Taro Pharmaceuticals Inc.,
+Brampton, Ontario, Canada
+3. Dadra, Dadra & Nagar Haveli, India
+2. Baddi, Himachal Pradesh, India
+1. Dewas, Madhya Pradesh, India
+OPERATIONAL MANUFACTURING
+PLANTS
+Website: https://swayam.linkintime.co.in/
+Fax: (022)-49186060
+28. Sun Pharma Egypt Limited,
+October City, Giza, Egypt
+29. Ranbaxy Malaysia Sdn. Bhd.,
+Kedah, Malaysia
+31. S.C Terapia S. A., Cluj, Romania
+32. JSC Biosintez, Penza, Russia
+5.
+Concept, content and design at stirrup | whatsup@stirrup.works
+www.sunpharma.com
+Goregaon (E), Mumbai 400063, Maharashtra, India.
+Tel: (+91 22) 4324 4324, Fax: (+91 22) 4324 4343
+CIN: L24230GJ1993PLC019050
+Plot No. 201 B/1, Western Express Highway,
+SUN HOUSE
+PHARMA
+SUN
+Sun Pharmaceutical Industries, Inc.,
+65, Hayden Avenue, Suite 3000N,
+Lexington, Massachusetts
+02421, USA.
+USA
+6.
+35. Ohm Laboratories Inc., New
+Brunswick, New Jersey, US
+34. Chattem Chemicals, Inc.,
+Chattanooga, US
+33. Ranbaxy Pharmaceuticals., (Pty)
+Ltd., Roodepoort, Johannesburg,
+South Africa
+6. Paonta Sahib, Himachal
+Pradesh, India
+Sun Pharma Advanced Research
+Centre, F.P.27, Part Survey No. 27,
+C.S. No. 1050, TPS No. 24, Village
+Tandalja, District, Vadodara -
+390 012, Gujarat.
+4. Halol, Gujarat, India
+New Jersey 08901, USA.
+Terminal Road, New Brunswick,
+Ohm Laboratories Inc.,
+Tel: (022)-49186000
+USA
+30. Ranbaxy Nigeria Limited, Lagos
+(Magboro), Nigeria
+LBS Marg, Vikhroli (West),
+Mumbai 400 083
+5. Mohali, Punjab, India
+Link Intime India Pvt. Ltd.
+Anoop Deshpande
+AUDITORS
+7. Silvassa, Dadra & Nagar
+Haveli, India
+8. Ahmednagar, Maharashtra, India
+9. Ankleshwar, Gujarat, India
+10. Dahej, Gujarat, India
+11. Maduranthakam, Tamilnadu, India
+12. Malanpur, Madhya Pradesh, India
+13. Panoli, Gujarat, India
+14. Toansa, Punjab, India
+15. Bengaluru, Karnataka, India
+16. Sun Pharma Laboratories Ltd.,
+Guwahati, Assam, India
+17. Sun Pharma Laboratories Ltd.,
+Jammu, Jammu & Kashmir, India
+18. Sun Pharma Laboratories Ltd.,
+Setipool, Sikkim, India
+19. Sun Pharma Laboratories Ltd.,
+Ranipool, Sikkim, India
+20. Sun Pharmaceutical Medicare Ltd.,
+Baska, Gujarat, India
+21. Zenotech Laboratories Ltd.,
+Medchal-Malkajgiri Dist.,
+Telangana, India
+22. Sun Pharmaceutical Industries
+(Australia), Latrobe, Australia
+COMPANY SECRETARY &
+COMPLIANCE OFFICER
+36. Ohm Laboratories Inc., North
+Brunswick, NJ, New Jersey, US
+37. Pharmalucence Inc., Billerica,
+Massachusetts, US
+Registered Office
+Sun Pharma Advanced Research
+Centre (SPARC), Tandalja,
+390 012, Gujarat.
+Vadodara
+-
+Corporate Office
+Sun House, Plot No. 201 B/1, Western
+Express Highway, Goregaon (E),
+Mumbai 400 063, Maharashtra.
+CIN: L24230GJ1993PLC019050
+Tel: (022)-4324 4324
+Fax: (022)-4324 4343
+Email: secretarial@sunpharma.com
+MAJOR R&D CENTRES
+C 101, 247 Park,
+1.
+OFFICES
+CHIEF FINANCIAL OFFICER
+C. S. Muralidharan
+38. Sun Pharma Japan Technical
+Operations Ltd., Saitama, Japan
+Rolf Hoffmann
+Chartered Accountants, Mumbai
+Independent Director (appointed with
+effect from June 15, 2023)
+SRBC & Co. LLP
+(Bangladesh) Ltd., Joydevpur,
+Gazipur, Bangladesh
+India
+2.
+23. Sun Pharmaceutical Industries
+(Australia), Port Fairy, Australia
+24. Sun Pharmaceutical
+Corporate Information
+BOARD OF DIRECTORS
+Dilip S. Shanghvi
+Chairman and Managing Director
+Dr. Pawan Goenka
+Lead Independent Director
+Village Sarhaul, Sector-18,
+Rama Bijapurkar
+Sanjay Asher
+Aalok D. Shanghvi
+REGISTRARS & SHARE TRANSFER
+AGENTS
+Independent Director
+Independent Director
+Independent Director
+Non-Independent Director
+Non-Executive and
+Sudhir V. Valia
+Whole-time Director (appointed with
+effect from June 01, 2023)
+Gautam Doshi
+Sales representatives
+Markets with local
+manufacturing footprint
+2,500+
+Indian company in emerging markets
+Leading
+• Enhance productivity
+• Innovate continuously to ensure high brand equity
+with doctors
+Revenues in FY24
+86,195 Million
+• Evaluate licensing opportunities for latest
+patented products
+• Maintain leadership in a competitive market
+As a leading Indian pharmaceutical company in emerging markets, Sun Pharma has established a significant presence in over
+80 countries worldwide. With a robust global footprint spanning key regions such as Romania, Russia, South Africa, Brazil,
+and Mexico, Sun Pharma focuses on strategically important markets to drive growth and expand reach.
+7
+With a customer-centric approach, the Company prioritises understanding the unique needs of healthcare professionals and
+patients, fostering loyalty and driving adoption.
+Road Ahead
+Patient First. Always.
+Share of revenues
+Road Ahead
+14%
+Rest of the World (ROW): Western Europe, Canada, Israel, Japan, Australia and
+New Zealand (ANZ) and Other Markets
+• Gain critical mass in key markets • Enhance specialty product basket • Focus on profitable growth
+(Source: Press Release)
+Supporting our global operations, Sun Pharma maintains a dedicated sales force comprising over 2,500 sales representatives
+across various markets. This extensive network is not just a number, but a testament to the Company's effectiveness in
+engaging with healthcare providers, promoting products, and driving sales growth.
+• New Drug Application (NDA) of tildrakizumab injection under the brand name of ILUMETRI has been approved by the
+National Medical Products Administration of the People's Republic of China ('China') (NMPA). ILUMETRI is indicated
+for the treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or
+phototherapy. In June 2019, Sun Pharma out-licensed tildrakizumab to a subsidiary of China Medical System Holdings
+Limited (CMS), for development, regulatory filings and commercialisation of the product in Greater China. Ilumetri was
+included in China's National Reimbursement Drug List from January 2024.
+• Revenues from Emerging Markets grew by 9.1% Y-o-Y to reach 86,195 Million driven by growth across multiple markets.
+FY24 Highlights
+Financial Statements
+Statutory Reports
+Management Discussion and Analysis
+Corporate Overview
+30
+New Product Approvals, Launches and Acquisitions in Emerging Markets
+[Source: Press Releases]
+Sales Per Medical Representative
+• Sun Pharma and Zydus Lifesciences Limited entered into
+a licensing agreement to co-market an innovative drug,
+desidustat in India. Desidustat is first-of-its-kind oral
+treatment for anemia associated with Chronic Kidney
+Disease (CKD) in India. Sun Pharma will market the drug
+under the brand name RYTSTATⓇ.
+(in Million)
+Graph 23
+10.7
+11.4
+9.4
+10.0
+10.6
+Sun Pharma has built a sales force comprising well-trained
+and scientifically oriented representatives with a strong
+performance track record. The Company maintained
+the highest field force productivity among key players.
+Additionally, the Company focuses on increasing its
+field force to expand geographical and doctor reach,
+amplifying brand presence across key markets.
+*
+29
+Financial Statements
+Statutory Reports
+Management Discussion and Analysis
+Corporate Overview
+Leading
+Best-in-class Field Force Productivity
+• Sun Pharma and Bayer signed an agreement to market
+and distribute a second brand of finerenone in India.
+Finerenone, a patented medicine is indicated to reduce
+the risk of sustained eGFR decline, end-stage kidney
+disease, cardiovascular death, non-fatal myocardial
+infarction, and hospitalisation for heart failure in adult
+patients with chronic kidney disease associated with
+type 2 diabetes mellitus. Sun Pharma is marketing
+finerenone under the brand name LyvelsaⓇ.
+FY20
+FY22
+• Sun Pharma entered into a license agreement with
+Pharmazz Inc., (Pharmazz), a US-based biopharmaceutical
+company to commercialise a first-in-class innovative drug,
+TyvalziTM (sovateltide) in India. Developed by Pharmazz
+for potential global use, Sovateltide is indicated for
+treating cerebral ischemic stroke. Sovateltide is a first of
+its kind drug to treat acute cerebral ischemic stroke that
+can be administered up to 24 hours after the onset of
+symptoms. India is the first global territory where Tyvalzi™
+(sovateltide) is being introduced.
+provides superior delivery over cyclosporine emulsion
+0.05%, backed by several years of clinical experience in
+the US and other geographies.
+Markets with sales reach
+~80
+Share of revenues
+18%
+FY21
+Emerging Markets
+New Product Approvals, Launches and Acquisitions
+in India
+Our India business comprises the branded formulations business,
+described here, and part of the global consumer healthcare business,
+described in a later section.
+Revenues from the India business* grew by 9.5% Y-o-Y to
+reach 148,893 Million, driven by growth across most of
+our Company's therapeutic segments.
+FY24 Highlights
+FY24
+FY23
+• Sun Pharma launched a novel ophthalmology treatment,
+CEQUAⓇ, in India for patients who have Dry Eye
+Disease (DED) with inflammation, a commonly occurring
+condition. CEQUA® is the first dry eye treatment available
+in India that is delivered with nanomicellar (NCELL®)*
+technology. Unique NCELL® Technology and formulation
+*67,128 Million
+• Sustained focus and investments in anchor brands
+with a view of category development
+Indian company in the RoW segment
+29,377.9
+2,190.2
+438,856.8
+95,798.8
+Year ended
+March 31, 2023
+Year ended
+March 31, 2024
+484,968.5
+115,822.1
+46,788.4
+36,686.7
+Year ended
+March 31, 2023
+208,121.4
+202,751.7
+March 31, 2024
+Year ended
+Consolidated
+Standalone
+(in Million)
+Material Changes and Commitments
+Closing balance in Retained Earnings
+Opening balance in Retained Earnings
+Profit after tax
+Profit before tax but after exceptional item
+4,943.2
+Exceptional Item
+1,714.5
+17,410.5
+During the year under review, the Directors have declared
+an interim dividend of 8.50/- (Rupees Eight and Paise
+Fifty only) per equity share of 1/- (Rupee One only) each
+[previous year 7.50/- (Rupees Seven and Paise Fifty only)
+per equity share of 1/- (Rupee One only) each] for the year
+ended March 31, 2024.
+Dividend
+The consolidated financial statements for the year
+ended March 31, 2024 pursuant to Section 129(3) of the
+Companies Act, 2013, form part of this Annual Report.
+Consolidated Accounts
+There have been no material changes and commitments
+affecting the financial position of the Company, between the
+end of the financial year and the date of this report.
+436,102.5
+501,545.5
+127,908.8
+127,310.4
+376,456.5
+436,102.5
+136,120.8
+127,908.8
+85,608.4
+96,484.4
+16,907.2
+28,581.8
+94,084.3
+110,878.9
+34,496.5
+Profit before exceptional item and tax
+Revenue from operations
+The Company's financial performance for FY24:
+Statutory Reports
+Management Discussion and Analysis
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+An independent and empowered Global Internal Audit
+Function at the corporate level, with support from a
+reputed audit firm, carries out risk-focused audits across
+our Indian and overseas businesses to ensure that business
+process controls are adequate and are functioning
+effectively. These reviews include financial, operational,
+compliance controls and risk mitigation plans. The
+Company's operating management closely monitors the
+internal control environment and effectively implements
+the recommendations. The Audit Committee of the Board
+monitors the performance of the Internal Audit Function,
+Global Internal Audit (GIA)
+We at Sun Pharma believe that internal control is a
+prerequisite for governance and that we should exercise
+business plans within a framework of checks and
+balances. Our Company has a well-established internal
+control framework to continuously assess the adequacy,
+effectiveness, and efficiency of financial and operational
+controls. The management is committed to ensuring an
+effective internal control environment, commensurate
+with the size and complexity of the business, which
+assures compliance with internal policies, applicable laws,
+regulations and protection of resources and assets.
+Internal Control
+Given high government budget deficits across the
+world, governments may try to control pricing of
+certain products, which may lead to government-
+mandated price controls on pharmaceutical products
+• Developing a specialty pipeline entails high upfront
+investments for long-term benefits, and may impact
+short-term profitability
+• Significant volatility in the forex market, especially
+for emerging market currencies, may adversely
+impact reported growth of these markets, even
+though they may be recording growth in local
+currency terms
+• Challenging US generics pricing environment, driven
+by customer consolidation and higher competitive
+intensity on account of the faster pace of generic
+drug approvals by the USFDA
+• The current geopolitical issues give rise to
+uncertainties related to supply chains, inflation and
+overall economic growth
+Growing penetration of generics in Japan and
+opening of the China market present good
+long-term opportunities for Indian companies,
+including Sun Pharma
+• Developed markets have witnessed a consistent
+increase in contribution of specialty products in
+their overall pharmaceutical spending and this
+trend is expected to continue in the future. Sun
+Pharma has already commercialised many of its
+specialty products in developed markets, and
+hence will be able to reap the benefits of this
+expanding opportunity
+Favourable macro-economic parameters for India
+and emerging markets are likely to ensure reasonable
+volume growth for pharmaceutical products across
+these markets in the long term
+• Ability to supply high-quality products at affordable
+prices across the world
+• Strong balance sheet imparts ability to undertake
+inorganic initiatives without any significant leverage,
+allowing future growth headroom
+• Focus on driving growth and profitability through
+a pragmatic mix of organic and inorganic initiatives
+• Robust R&D infrastructure and capabilities to
+develop technologically complex products in the
+generics and specialty segments
+Among the largest Indian pharmaceutical
+companies in the Emerging Markets
+Financial Statements
+reviews key findings and provides strategic guidance. GIA's
+functioning is governed by the Audit Charter, duly approved
+by the Audit Committee of the Board, which stipulates
+matters contributing to the proper and effective conduct of
+the audit. The audit processes are fully automated using a
+'SunScience' tool, which integrates internal audits.
+Disclaimer
+Statements in this 'Management Discussion and Analysis'
+describing the Company's objectives, projections, estimates,
+expectations, plans or industry conditions or events
+are 'forward-looking statements' within the meaning of
+applicable securities laws and regulations. Actual results,
+performance or achievements could differ materially from
+those expressed or implied. Important factors that could
+Financial Highlights
+Your Directors take pleasure in presenting the Thirty-Second Annual Report and Company's Audited Financial Statements
+for the financial year ended March 31, 2024 ("FY24”).
+Statutory Reports Financial Statements
+Board's Report
+Corporate Overview
+Board's Report
+36
+Patient First. Always.
+SUN
+Euromonitor
+In addition to above, the Directors have recommended a
+final dividend of 5/- (Rupees Five only) per equity share
+of 1/- (Rupee One only) each [previous year 4/- (Rupees
+₹
+Four only) per equity share of 1/- (Rupee One only) each]
+for the year ended March 31, 2024, subject to the approval
+of the shareholders at the ensuing 32nd Annual General
+Meeting of the Company.
+AIOCD-AWACS Data
+IQVIA
+3.
+SMSRC Data
+5.
+4.
+1. IQVIA Institute: Global Use of Medicine Outlook 2024
+2. Mordor Intelligence
+References:
+make a difference to the Company's operations include
+global and Indian demand-supply conditions, finished
+goods prices, feedstock availability and prices, competitors'
+pricing in the Company's principal markets, changes in
+government regulations, tax regimes, economic conditions
+within India and the countries within which the Company
+conducts business and other factors, such as litigation and
+labour unrest or other difficulties. The Company assumes
+no responsibility to publicly update, amend, modify, or
+revise any forward-looking statements, based on any
+subsequent development, new information or future events
+or otherwise except as required by applicable law. Unless
+the context otherwise requires, references in this document
+to 'we', 'us' or 'our' refers to Sun Pharmaceutical Industries
+Limited and consolidated subsidiaries.
+35
+6.
+2nd largest by prescriptions in the US
+dermatology segment
+The total dividend payout for FY24 is 13.50/- (Rupees
+Thirteen and Paise Fifty only) per equity share of * 1/- each
+[previous year 11.50/- (Rupees Eleven and Paise Fifty only)
+per equity share of 1/- (Rupee One only) each].
+Scan the QR code to view the
+Dividend Distribution Policy
+Board Meetings
+The Corporate Governance Report and the certificate from
+the Auditors of the Company as stipulated in Schedule V of
+the Listing Regulations, are provided in a separate section
+and forming part of this Report.
+Corporate Governance Report
+The Management Discussion and Analysis as prescribed
+under Part B of Schedule V read with Regulation 34(3) of
+the Listing Regulations is provided in a separate section and
+forms part of this Report which includes the state of affairs
+of the Company and there has been no change in the nature
+of business of the Company during FY24.
+Management Discussion and Analysis
+Information as per Section 197 (12) of the Act read with Rule
+5(1) of the Companies (Appointment and Remuneration of
+Managerial Personnel) Rules, 2014 is provided in 'Annexure
+- A' to this Report. Further, the information pertaining
+to Rule 5(2) & 5(3) of the aforesaid Rules, pertaining to
+the names and other particulars of employees is available
+for inspection at the registered office of the Company
+during business hours and the Annual Report is being
+sent to the members excluding this. Any shareholder
+interested in obtaining a copy of the same may write to
+the Company Secretary and Compliance Officer either at
+the Registered/ Corporate Office address or by email to
+secretarial@sunpharma.com.
+38
+Patient First. Always.
+PHARMA
+SUN
+Scan the QR code to view the
+Remuneration Policy
+The Remuneration Policy as approved by the Board is
+available on the website of the Company and can be accessed
+at https://sunpharma.com/policies.
+(f) Commission
+(e) Gratuity/group insurance
+Share based payments
+Non-monetary benefits
+The Board discussed upon the performance evaluation
+outcome and concluded that they were satisfied with the
+During the year, annual performance evaluation of the
+Board and Committees of the Board, individual Directors
+including the Chairman of the Board, was carried out as
+per the criteria and process approved by Nomination and
+Remuneration Committee, which is in line with the SEBI
+Guidance Note on Board Evaluation.
+(d)
+SUN
+The Board of Directors of the Company met 6 (six) times
+during the year under review. The dates of the Board
+meeting and the attendance of the Directors at the said
+meetings are provided in the Corporate Governance Report,
+which forms a part of this Report.
+c)
+Committees of the Board
+The details pertaining to the meetings and composition of
+the Committees of the Board are included in the Corporate
+Governance Report, which forms part of this Report.
+SUN
+the Global Whistle Blower Policy
+Scan the QR code to view
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+At Sun Pharma, we are dedicated to upholding the pinnacle
+of professional integrity and ethical conduct in all our
+business dealings. A comprehensive Global Code of Conduct
+underpins our reputation as a distinguished global entity.
+This Code mandates that our employees embody the
+Company's core values and engage in business activities
+with unyielding integrity and the utmost ethical standards.
+Through our Global Whistle-blower Policy, management
+proactively works to avert any actions that deviate from
+this Code. This policy establishes a protected avenue for
+employees to responsibly report any infractions of the
+Code. The board-sanctioned Global Whistle-blower policy
+is accessible on our website at https://sunpharma.com/
+policies. For more in-depth information regarding the
+Company's Vigil Mechanism, please refer to the Corporate
+Governance Report included within this Annual Report.
+Whistle-blower Policy / Vigil Mechanism
+The internal financial controls framework, an integral
+component of the broader internal controls system, is
+pivotal in guaranteeing the dependability and precision of
+financial reporting. This framework facilitates the meticulous
+preparation of financial statements by generally accepted
+accounting standards.
+The Company has established a comprehensive internal
+controls framework. This framework encompasses an array
+of policies, procedures, and mechanisms that are pivotal
+in augmenting operational efficiency and effectiveness,
+curtailing risks and expenditures, and fostering enhanced
+decision-making and accountability.
+The management team recognises that robust internal
+controls are foundational to sound governance. Actions
+derived from consensus-based business strategies should
+operate within a structured system of oversight and balance.
+The leadership is dedicated to maintaining an internal
+control environment proportionate to the business's scale
+and intricacy. This environment is designed to ensure
+adherence to internal protocols, compliance with pertinent
+laws and regulations, and the integrity and precision
+of financial records. It also aims to bolster operational
+efficiency, safeguard company assets, and aid in preventing
+and detecting fraud, inaccuracies, and anomalies, thereby
+substantially mitigating risk exposure.
+Internal Controls and Internal Financial Controls
+As required under Section 134(3)(h) of the Act, details of
+transactions entered with related parties under the Act
+are given in Form AOC-2, provided as 'Annexure - B' to
+this Report.
+All contracts/arrangements/ transactions entered by the
+Company during the year under review with the related
+parties were in the ordinary course of business and on an
+arm's length basis.
+Financial Statements
+Statutory Reports
+Board's Report
+Corporate Overview
+SUN
+Scan the QR code to view the Policy on
+Materiality of and Dealing with Related
+Party Transactions
+The policy on Related Party Transactions as approved by
+the Board is available on the website of the Company at
+https://www.sunpharma.com/policies.
+Related Party Transactions
+As on March 31, 2024, the Board has 6 (six) Committees.
+Audit Committee, Nomination and Remuneration Committee,
+Stakeholders Relationship Committee, Risk Management
+Committee, Corporate Social Responsibility Committee and
+Corporate Governance and Ethics Committee.
+(b) Variable compensation
+(a) Fixed compensation
+Components of Remuneration: The following will be
+the various remuneration components which may be
+paid to the personnel of the Company based on the
+designation and class of the personnel.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+1. Mr. Aalok Shanghvi (DIN: 01951829) is appointed
+as Whole-time Director for a term of five years
+commencing from June 1, 2023 to May 31, 2028 at the
+31st Annual General Meeting held on August 28, 2023.
+During the year, following were the changes in Directors/
+Key Managerial Personnel:
+Directors and Key Managerial Personnel
+Details pertaining to entities that became subsidiaries/
+joint ventures/ associates and those that ceased to be the
+subsidiaries/joint ventures/ associates of the Company
+during the year under review are provided in the notes to
+the consolidated financial statements, forming part of this
+Annual Report.
+The statement containing the salient features of the
+Financial Statements of the Company's subsidiaries/joint
+ventures/ associates is given in Form AOC - 1, provided
+in Notes to the consolidated financial statements, forming
+part of this Annual Report.
+Subsidiaries/Joint Ventures/ Associates
+There is no change in the credit rating and the same is
+disclosed in the Corporate Governance Report forming part
+of this Annual Report.
+Credit Rating
+During the year under review there was no change in the
+capital structure of the Company.
+Changes in Capital Structure
+The Company has not accepted any deposit from the public
+during the year under review.
+Public Deposits
+The particulars of loans, guarantees and investments have
+been disclosed in the Financial Statements.
+Loans, Guarantees and Investments
+The Directors do not propose any transfer to reserves.
+Transfer to Reserves
+PHARMA
+SUN
+Corporate Overview
+Statutory Reports
+Board's Report
+Financial Statements
+37
+Guiding Principles for Remuneration: The Company
+shall remunerate all its personnel reasonably and
+sufficiently as per industry benchmarks and standards.
+The remuneration shall be commensurate to retain
+and motivate the human resources of the Company.
+The compensation package will, inter alia, take
+into account the experience of the personnel, the
+knowledge and skill required including complexity of
+his/her job, work duration and risks associated with
+the work, and attitude of the employee like positive
+outlook, team work, loyalty etc.
+B.
+A.
+Further, the Company has a Policy on remuneration of
+Directors, Key Managerial Personnel and other Employees.
+The salient features of the Remuneration Policy of the
+Company are as under:
+The Company has in place a process for selection of any
+Director, wherein the Nomination and Remuneration
+Committee identifies persons of integrity who possess
+relevant expertise, experience and leadership qualities
+required for the position and the Committee also ensures
+that the incumbent fulfils such criteria with regard to
+qualifications, positive attributes, independence, age and
+other criteria as laid down under the Act, Listing Regulations
+or other applicable laws and the diversity attributes as per
+the Board Diversity Policy of the Company.
+Remuneration Policy and Criteria for
+Appointment of Directors
+The performance evaluation of the Non-Independent
+Directors and the performance of the Board as a whole
+was discussed at the separate meeting of the Independent
+Directors as well.
+overall performance of the Board and Committees of the
+Board and Directors individually. The Board also assessed the
+fulfilment of the independence criteria by the Independent
+Directors of the Company and their independence from the
+management as specified in the Listing Regulations.
+Board Performance Evaluation
+The dividend payout is in accordance with the Company's
+Dividend Distribution Policy. The policy is available on the
+website of the Company at https://sunpharma.com/policies.
+Scan the QR code to view the
+Familiarisation Programme for the
+Independent Directors
+The Company has received declarations from all the
+Independent Directors confirming that they meet with
+the criteria of independence as prescribed under Section
+149(6) of the Act and the Regulation 16(1)(b) of the Listing
+Regulations. There has been no change in the circumstances
+affecting their status as Independent Directors of the
+Company and in the opinion of the Board, the Independent
+Directors fulfil the conditions specified under the Act and the
+Listing Regulations and are Independent of the management.
+Declaration by Independent Directors
+The necessary disclosures required under the Companies Act,
+2013 ("Act") and the SEBI (Listing Obligations and Disclosure
+Requirements) Regulations, 2015 ("Listing Regulations")
+and Secretarial Standards-2 on General Meetings issued
+by the Institute of Company Secretaries of India, for
+the above-mentioned re-appointment is provided in the
+Notice of 32nd Annual General Meeting of the Company.
+Mr. Dilip Shanghvi, Managing Director of the Company, will
+retire by rotation at the ensuing Annual General Meeting,
+and being eligible has offered himself for re-appointment.
+Subsequent to the year end at the Board Meeting held on
+May 22, 2024, Mr. Dilip Shanghvi, Managing Director, is also
+appointed as the Chairman of the Board with immediate effect.
+Mr. Sailesh Trambaklal Desai (DIN: 00005443),
+Whole-time Director retired and ceased to be the
+Director effective from March 31, 2024.
+Mr. Rolf Hoffmann (DIN:10200311) is appointed
+as an Independent Director for a term of five years
+commencing from June 15, 2023 to June 14, 2028 at
+the 31st Annual General Meeting.
+3.
+2.
+Familiarisation Programme for the Independent Directors
+In compliance with the requirements of Regulation 25(7)
+of the Listing Regulations, the Company has put in place a
+Familiarisation Programme for the Independent Directors
+to familiarise them with the Company, their roles, rights,
+responsibilities in the Company, nature of the industry in
+which the Company operates, business model etc. The
+details of the Familiarisation Programme are available on the
+website of the Company at https://sunpharma.com/policies/
+13th largest generics Company in the US
+Largest pharma company in India by market share
+No. 1 ranking across 12 different classes of
+doctors in India
+Leading global specialty generics company
+R&D team
+3,000+
+Cumulative R&D
+expenditure till date
+270+ Billion
+of sales in FY24
+R&D spend as percentage
+6.7%
+Research and Development (R&D)
+Statutory Reports Financial Statements
+Management Discussion and Analysis
+Corporate Overview
+32
+Patient First. Always.
+Ensure consistent supplies and high service standards
+for customers
+• Support the formulations business by developing
+strategic APIs
+Road Ahead
+Revenue from the API business decreased by 2.7% to 19,187 Million mainly due to lower sales recorded in India.
+FY24 Highlights
+With 14 state-of-the-art API facilities, Sun Pharma maintains stringent control over costs and ensures seamless backward
+integration. Serving an extensive clientele, including major generic and innovator companies, Sun Pharma's API division
+has a diverse portfolio comprising over 380 APIs.
+507
+DMF/CEP filings to date
+Sun Pharma's dedicated R&D team endeavours to offer patients innovative and affordable medicines and treatments to
+alleviate their ailments. Our Company has continuously invested in building an extensive portfolio of specialty products,
+generics and branded generics for the global market.
+DMF/CEP approvals to date
+Our R&D capabilities extend across various dosage forms, including injectables, orals, liquids, ointments, gels, sprays,
+hormones, and oral products. Additionally, our robust intellectual property capability supports our R&D team.
+R&D Investments
+ANDA
+(% of sales)
+Investments
+R&D
+(*Billion)
+Investments
+R&D
+FY24
+FY23
+FY22
+FY21
+FY20
+6.7%
+5.5%
+5.8%
+6.5%
+6.1%
+Filings and Approvals
+(in Billion)
+Graph 24
+386
+Manufacturing units
+14
+25+
+Global Consumer Healthcare Business
+Management Discussion and Analysis
+31
+Financial Statements
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+• Focus on complex generic launches • Gain critical mass in key markets
+• Enhance revenue contribution of
+specialty products
+Road Ahead
+• Sun Pharma and Philogen entered into a licensing agreement for commercialising Philogen's specialty product, Nidlegy™
+(Daromun) in the territories of Europe, Australia and New Zealand. Nidlegy™, currently in Phase III clinical trials, is a new
+anti-cancer biopharmaceutical which is being developed for the treatment of melanoma and non-melanoma skin cancers.
+Sun Pharma has exclusive rights to commercialise Nidlegy™ for indications of skin cancers in the territories of Europe,
+Australia and New Zealand. Philogen will complete pivotal clinical trials for the product in Europe, pursue marketing
+authorisation with the regulatory authorities and manufacture commercial supplies. Sun Pharma will be responsible for
+commercialisation activities. The two partner companies will share post-commercialisation economics in about 50:50 ratio.
+• Australian Therapeutic Goods Administration (TGA) granted regulatory approval for Winlevi® (clascoterone cream 1%).
+WinleviⓇ is indicated for the topical treatment of acne vulgaris in patients 12 years of age and older.
+(Source: Press Release)
+New Product Approvals, Launches and Acquisitions in Rest of World
+• Revenues from the RoW markets increased by 11.1% Y-o-Y to reach * 67,128 Million
+FY24 Highlights
+Our Company's expanding product basket encompasses specialty, hospital, and retail products, catering to diverse
+healthcare needs across different markets. Sun Pharma operates on a distribution-led model and employs a dedicated sales
+force to promote our specialty products in markets such as Canada, Japan, Australia, Israel, and Hungary. Additionally, the
+Company leverages our manufacturing facilities in India to supply products to these regions, ensuring seamless availability
+and distribution.
+We have a strong presence in key international markets including Western Europe, Canada, Australia and New Zealand,
+Japan, Israel, and others. Leveraging our global expertise and strategic partnerships, our Company has established a
+formidable market presence in these regions.
+Markets with local manufacturing
+5
+Countries footprint
+Among Top 10
+Consumer healthcare companies in
+Romania, Nigeria and Kenya
+~500,000
+APIs scaled up annually
+~10-20
+Revenues in FY24
+~380
+API portfolio
+19,187 Million
+Share of revenues
+5%
+Active Pharmaceutical Ingredient (API) Business
+• Activating digital for wider consumer outreach
+NDA/BLA DMF/CEP
+• Improving sales force efficiency and deploy effective
+trade marketing initiatives
+• Leverage on our brand equity to launch extensions
+and build a portfolio of products across new formats
+and benefit spaces
+Road Ahead
+• Launched Revital Cal 500, a calcium supplement with a superior formulation to participate in the growing calcium
+supplements market
+• Implemented robust trade engagement programs focused on improving trade recommendation, availability and visibility
+• Sun Pharma's key brands - Volini, Revital H and Abzorb - launched new communications focused on driving category
+development by building relevance
+FY24 Highlights
+With bellwether brands such as Revital H, Volini and Abzorb in its portfolio, Sun Pharma's consumer healthcare products
+have strong distribution reach across pharmacies, retail stores and online e-commerce platforms in India.
+Sun Pharma's Consumer Health Care business is amongst the top consumer health care businesses in India with a portfolio
+based on scientific formulations, having operations in about 25+ emerging markets.
+Pharmacy and Retail outlets
+in India where Sun Pharma's
+products are available
+Augmenting consumer reach through opening of new
+markets and distribution channels
+Patents**
+Graph 25
+(Numbers)
+1
+2
+9
+API Facilities
+Number of
+Table 12
+Total
+Hungary
+United States
+Israel
+Australia
+India
+Country
+API Manufacturing Facilities
+27
+1
+Total
+Russia
+1
+1
+1
+14
+People: Nurturing a Diverse and Inclusive Global
+Workforce
+-
+Strong global prominence
+Financial Statements
+Management Discussion and Analysis
+Statutory Reports
+Corporate Overview
+SWOT Analysis
+34
+Strengths
+Nigeria
+Opportunities
+Patient First. Always.
+SUN
+Sun Pharma's robust quality management system ensures
+the highest quality standards are maintained across its
+research centres, manufacturing divisions, testing labs,
+and distribution centres. Our Quality Management
+Team oversees regulatory compliance for all products
+and manufacturing plants, and we hold current Good
+Manufacturing Practice (cGMP) certifications from various
+international regulatory bodies such as US FDA, EMA, WHO,
+and TGA. Our Corporate Quality Unit ensures the execution
+of the latest GMP upgrades and guidelines.
+Commitment to Quality
+Dilip Shanghvi
+"Being certified as a Great Place to Work in 25 countries
+is a testament to the dedication and spirit of our team.
+It is a matter of pride that people across Sun have
+shared a positive and favourable experience working
+with the Company. We have always strived to create
+a culture of trust and openness, which has helped us
+grow individually and collectively."
+Great Place to Work® Certified
+With an extensive global workforce exceeding, 43,000
+individuals from over 50 nations, Sun Pharma prioritises
+cultivating an inclusive workplace environment that fosters
+professional growth and advancement. Recognising the value
+of diverse perspectives, our Company promotes a culture of
+equality and opportunity. Through continued investment in
+learning and development initiatives, Sun Pharma empowers
+its workforce to stay ahead of the industry.
+33
+Threats and Weaknesses
+Revenues in FY24
+1
+1
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+API facilities
+14
+Finished dosage manufacturing facilities
+27
+Sun Pharma's manufacturing facilities are certified by
+global regulatory agencies such as the USFDA, European
+Medicines Evaluation Agency (EMEA); UK Medicines and
+Healthcare Products Regulatory Agency (MHRA); Australia's
+Therapeutic Goods Administration (TGA), South Africa's
+Medicines Control Council (MCC); Germany's Federal
+Institute for Drugs and Medical Devices (BfArM); Brazilian
+Health Regulatory Agency (ANVISA); the World Health
+Organization (WHO), and South Korea's Ministry of Food
+and Drug Safety and Japan's Pharmaceuticals and Medical
+Devices Agency.
+With 41 state-of-the-art manufacturing facilities spanning
+six continents, Sun Pharma has established a leading
+position in the global pharmaceutical industry. Our vertically
+integrated network enables us to produce medicines in
+the areas of oncology, hormones, peptides, and steroidal
+drugs, while adhering to the highest quality standards.
+We offer a variety of dosage forms, including orals,
+creams, ointments, injectables, sprays, and liquids. At
+Sun Pharma, we are committed to providing high-quality
+pharmaceutical products that make a positive impact on
+people's lives. Our extensive global footprint and world-class
+manufacturing infrastructure allow us to deliver on this
+promise to our customers and patients worldwide.
+Global Manufacturing Base:
+World-class Infrastructure
+• Invest to extend the specialty pipeline
+• Develop complex products across multiple dosage forms
+Road Ahead
+(All data as of March 31, 2024)
+** Excludes Expired/Abandoned Patents
+• Extended our Specialty R&D pipeline
+• Developed and filed ~250 formulation dossiers globally
+• Invested 31,776 Million in R&D (6.7% of sales)
+FY24 Highlights
+Filed
+Approved
+Financial Statements
+Statutory Reports
+Management Discussion and Analysis
+Table 11
+Country
+Romania
+1
+Malaysia
+1
+South Africa
+1
+Bangladesh
+1
+Israel
+Egypt
+1
+1
+Canada
+1
+Japan
+3
+13
+United States
+India
+Number of
+Finished Dosage
+Facilities
+Hungary
+Finishing Dosage Manufacturing Facilities
+Information required under Section 197 of the Act Read with Rule 5(1) of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014.
+b.
+Adequate notice of at least seven days was given
+to all directors to schedule the Board Meetings and
+Meetings of Committees except in some cases where
+the meetings were held on shorter notice. Agenda
+and detailed notes on agenda were sent in advance
+in adequate time before the meetings and a system
+exists for Directors for seeking and obtaining further
+information and clarifications on the agenda items
+before the meeting and for meaningful participation at
+the meeting.
+On verification of minutes, we have not found any
+dissent / disagreement on any of the agenda items
+discussed in the Board and Committee meetings
+from any of the Directors and all the decisions are
+carried through.
+Based on the information received and records maintained,
+we further report that there are adequate systems and
+processes in the Company commensurate with the size
+and operations of the Company to monitor and ensure
+compliance with applicable laws, rules, regulations
+and guidelines.
+We further report that, having regard to the compliance
+system prevailing in the Company and on examination of
+the relevant documents and records in pursuance thereof,
+on the basis of the representations made, the Company
+has identified and complied with the with various laws, as
+amended from time to time, applicable to the Company
+which inter-alia include:
+• Drugs and Cosmetics Act, 1940;
+•
+Drugs (Price Control) Order, 2013;
+•
+Narcotic Drugs and Psychotropic Substances Act, 1985;
+•
+The Board of Directors of the Company is duly
+constituted with proper balance of Executive Directors,
+Non-Executive Directors, Independent Directors and
+Woman Director. The changes in the composition of
+the Board of Directors that took place during the period
+under review were carried out in compliance with the
+provisions of the Act.
+Indian Boiler Regulation Act, 1950;
+• Legal Metrology Act, 2009.
+For KJB & CO LLP,
+Practicing Company Secretary
+Firm Unique Identification No. - L2020MH006601
+Peer Review Certificate No. - 2797/2022
+Alpeshkumar Panchal
+e.
+Partner
+FCS No.: 12908
+CP No.: 20120
+UDIN: F012908F000424418
+• Drugs and Magic Remedies (Objectionable
+Advertisements) Act, 1954;
+Date: May 22, 2024
+3.
+1.
+iii.
+The Depositories Act, 1996 and the Regulations and
+Bye-laws framed thereunder;
+h.
+iv.
+Foreign Exchange Management Act, 1999 and the
+rules and regulations made thereunder to the extent
+of Foreign Direct Investment, Overseas Direct
+Investment and External Commercial Borrowings -
+Provisions relating to External Commercial Borrowings
+not applicable to the company during the year
+under review;
+i.
+The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015;
+The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2018 - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011 - Not applicable to the
+Company for the year under review;
+2.
+The Securities and Exchange Board of India
+(Buy-back of Securities) Regulations, 2018 -
+Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2021
+– Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993, regarding the Companies Act
+and dealing with client - Not applicable to the
+Company for the year under review;
+a. The Securities and Exchange Board of India (Issue
+and Listing of Debt Securities) Regulations, 2008
+Not applicable to the Company for the year
+under review;
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports Financial Statements
+Board's Report
+45
+We have also examined compliance with the applicable
+clauses of the Secretarial Standards with respect to meeting
+of Board of Directors (SS-1) and General Meetings (SS-2)
+issued by the Institute of Company Secretaries of India
+under the provisions of the Companies Act, 2013.
+During the period under review, the Company has complied
+with the provisions of the Act, Rules, Regulations, Guidelines
+etc. mentioned above to the extent applicable.
+We further report that:
+The Securities and Exchange Board of India
+(Share Based Employee Benefits and Sweat
+Equity) Regulations, 2021 - Not applicable to the
+Company for the year under review;
+Place: Vadodara
+This report is to be read with our letter of even date which
+is annexed as Annexure
+Firm Unique Identification No. - L2020MH006601
+Peer Review Certificate No. - 2797/2022
+Alpeshkumar Panchal
+Partner
+FCS No.: 12908
+CP No.: 20120
+UDIN: F012908F000424418
+Date: May 22, 2024
+Place: Vadodara
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Practicing Company Secretary
+Corporate Overview
+Financial Statements
+Board's Report
+47
+ANNEXURE - C2
+To,
+The Members,
+Form No. MR-3
+SECRETARIAL AUDIT REPORT
+For the Financial Year Ended March 31, 2024
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
+Statutory Reports
+For KJB & CO LLP,
+The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or
+effectiveness with which the management has conducted the affairs of the Company.
+The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
+responsibility of management. Our examination was limited to the verification of procedure on test basis.
+-
+1 and forms an integral part of
+this report.
+Patient First. Always.
+46
+ANNEXURE - 1
+Corporate Overview
+Statutory Reports
+Board's Report
+Financial Statements
+To,
+The Members,
+Sun Pharmaceutical Industries Limited,
+Our report of even date is to be read along with this letter.
+1.
+2.
+3.
+4.
+Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to
+express an opinion on these secretarial records based on our audit.
+We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
+correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct
+facts are reflected in secretarial records. We believe that the processes and practices we followed provide a reasonable
+basis for our opinion.
+We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
+Wherever required, we have obtained the Management representation about the compliance of laws, rules and
+regulations and happening of events etc.
+5.
+6.
+The Securities Contracts (Regulation) Act, 1956
+("SCRA") and the rules made thereunder;
+ii.
+g.
+The Companies Act, 2013 ("the Act") and the rules
+made thereunder;
+We further report that:
+During the year under review, the Company has complied
+with the provisions of the Act, Rules, Regulations,
+Guidelines, Standards etc. mentioned above to the
+extent applicable.
+We have also examined compliance with the applicable
+clauses of the Secretarial Standards with respect to meeting
+of Board of Directors (SS-1) and General Meetings (SS-2)
+issued by The Institute of Company Secretaries of India
+under the provisions of Companies Act, 2013.
+48
+Patient First. Always.
+The Securities and Exchange Board of India
+(Share based Employee Benefits and Sweat
+Equity) Regulations, 2021 - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993, regarding the Companies Act
+and dealing with client - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India
+(Buyback of Securities) Regulations, 2018 -
+Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2021
+- Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2018 - Not applicable to the
+Company for the year under review;
+1.
+Company for the year under review;
+The Securities and Exchange Board of India
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015 - Not applicable to the
+Company for the year under review;
+The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015
+- Not applicable to the Company for the year
+under review;
+i.
+h.
+iv. Foreign Exchange Management Act, 1999 and the
+rules and regulations made thereunder to the extent of
+Foreign Direct Investment, Overseas Direct Investment
+and External Commercial Borrowings - Provisions
+relating to Foreign Direct Investment not applicable to
+the Company for the year under review;
+The Depositories Act, 1996 and the Regulations and
+Bye-laws framed thereunder;
+iii.
+g.
+The Securities Contracts (Regulation) Act, 1956
+('SCRA') and the rules made thereunder; Not applicable
+to the Company for the year under review;
+ii.
+The Securities and Exchange Board of India
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011 - Not applicable to the
+2.
+3.
+The Board of Directors of the Company is duly
+constituted with proper balance of Non-Executive
+Directors and Independent Directors to the extent
+applicable during the period under review. The changes
+in the composition of the Board of Directors, if any,
+that took place during the period under review were
+carried out in compliance with the provisions of the
+Act. Further, The Board of Directors of the Company
+consist of 2 (two) Independent Directors although the
+provisions relating to having independent directors are
+not applicable to the Company and therefore in the
+opinion of the management the requirements under
+schedule IV of the Act are not applicable.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+This report is to be read with our letter of even date which
+is annexed as Annexure 1 and forms an integral part of
+this report.
+-
+Date: May 21, 2024
+Place: Vadodara.
+UDIN: F012908F000410351
+FCS No. 12908
+C. P. No. 20120
+Partner
+Alpeshkumar Panchal
+Firm Unique Identification No.- L2020MH006601
+Peer Review Certificate No.- 2797/2022
+Practicing Company Secretaries
+For KJB & CO LLP,
+• Legal Metrology Act, 2009.
+• Drugs and Magic Remedies (Objectionable
+Advertisements) Act, 1954;
+•
+• Narcotic Drugs and Psychotropic Substances Act, 1985;
+Indian Boiler Regulation Act, 1950;
+• Drugs (Price Control) Order, 2013;
+• The Drugs and Cosmetics Act, 1940;
+We further report that, having regard to the compliance
+system prevailing in the Company and on examination of
+the relevant documents and records in pursuance thereof,
+on the basis of the representations made, the Company has
+identified and complied with the various laws, as amended
+from time to time, applicable to the Company which inter-
+alia include:
+Based on the information received and records maintained,
+we further report that there are adequate systems and
+processes in the Company commensurate with the size
+and operations of the Company to monitor and ensure
+compliance with applicable laws, rules, regulations
+and guidelines.
+Statutory Reports Financial Statements
+Board's Report
+Corporate Overview
+On verification of minutes, we have not found any
+dissent/disagreement on any of the agenda items
+discussed in the Board and Committee meetings
+from any of the Directors and all the decisions are
+carried through.
+Adequate notice of at least seven days was given to all
+directors to schedule the Board Meetings and Meetings
+of Committees. Agenda and detailed notes on agenda
+were sent in advance in adequate time before the
+meetings and a system exists for Directors for seeking
+and obtaining further information and clarifications
+on the agenda items before the meeting and for
+meaningful participation at the meeting.
+f.
+Sun Pharma Laboratories Limited,
+The Companies Act, 2013 ("the Act") and the rules
+made thereunder;
+NIL
+Statutory Reports
+Board's Report
+Financial Statements
+ANNEXURE - C1
+To,
+Form No. MR-3
+SECRETARIAL AUDIT REPORT
+FOR THE FINANCIAL YEAR ENDED MARCH 31, 2024
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
+(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of SEBI
+(Listing Obligations and Disclosure Requirements) Regulations, 2015]
+The Members,
+Sun Pharmaceutical Industries Limited,
+Corporate Overview
+We have conducted the Secretarial Audit of the compliances
+of applicable statutory provisions and the adherence to
+good corporate governance practice by Sun Pharmaceutical
+Industries Limited, ("the Company"). Secretarial Audit
+was conducted in a manner that provided us a reasonable
+basis for evaluating the corporate conducts / statutory
+compliances and expressing our opinion thereon.
+We have examined the books, papers, minutes books,
+forms and returns filed and other records maintained by the
+Company for the financial year ended on March 31, 2024,
+according to the provisions of:
+V.
+The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India Act,
+1992 ("SEBI Act"):
+a. The Securities and Exchange Board of India
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015;
+b.
+C.
+d.
+e.
+f.
+i.
+Based on our verification of the Company's books, papers,
+minutes books, forms and returns filed and other records
+maintained by the Company and also the information
+provided by the Company, its officers, agents and authorised
+representatives during the conduct of secretarial audit, we
+hereby report that in our opinion, the Company has, during
+the audit period covering the financial year ended on March
+31, 2024, complied with the statutory provisions listed
+hereunder and also that the Company has proper Board-
+processes and compliance mechanism in place to the extent,
+in the manner and subject to the reporting made hereinafter:
+44
+Patient First. Always.
+Whole-time Director
+(DIN: 01951829)
+Reimbursement of Expenses - Received
+(Wholly-Owned
+Subsidiary)
+Lease Rent Received
+4.
+Sun
+Industries INC
+Pharmaceutical
+(Wholly-Owned
+Subsidiary
+Revenue From Contracts with Customers, Net
+of Returns
+On-going
+The aggregate amount of Not
+transactions for FY24 was applicable
+64,263.10 Million
+NIL
+Reimbursement of Expenses - Paid and
+Received
+Rendering of Service - Income
+Interest Income
+Place: Mumbai
+Date: May 22, 2024
+For and on behalf of the Board of Directors
+Dilip Shanghvi
+Chairman and Managing Director
+(DIN: 00005588)
+Aalok Shanghvi
+i.
+We have conducted the Secretarial Audit of the compliances
+of applicable statutory provisions and the adherence
+to good corporate governance practice by Sun Pharma
+Laboratories Limited (“the Company"). The Secretarial Audit
+was conducted in a manner that provided us a reasonable
+basis for evaluating the corporate conducts / statutory
+compliances and expressing our opinion thereon.
+The Securities and Exchange Board of India (Issue
+and Listing of Debt Securities) Regulations, 2008
+- Not applicable to the Company for the year
+under review.
+We have examined the books, papers, minute books, forms
+and returns filed and other records maintained by the
+Company for the financial year ended on March 31, 2024,
+according to the provisions of:
+(e) the Directors have laid down internal financial controls
+to be followed by the Company and that such internal
+financial controls are adequate and were operating
+effectively; and
+(d) the Directors have prepared the annual accounts on a
+going concern basis;
+the Directors have taken proper and sufficient care
+for the maintenance of adequate accounting records
+in accordance with the provisions of the Act for
+safeguarding the assets of the Company and for
+preventing and detecting fraud and other irregularities;
+(c)
+(b) the Directors have selected such accounting policies
+and applied them consistently and made judgements
+and estimates that are reasonable and prudent so as to
+give a true and fair view of the state of affairs of the
+Company as on March 31, 2024 and of the profit of
+the Company for the year ended on that date;
+(a) in the preparation of the annual accounts for FY24, the
+applicable accounting standards have been followed
+and there are no material departures from the same;
+Pursuant to the requirements under Section 134(5) read
+with Section 134(3)(c) of the Act, with respect to Directors'
+Responsibility Statement, it is hereby confirmed that:
+Directors' Responsibility Statement
+There are no proceedings initiated/ pending against
+your Company under the Insolvency and Bankruptcy
+Code, 2016 and there is no instance of one-time
+settlement with any Bank or Financial Institution.
+During the year under review, the Statutory Auditor,
+Cost Auditor and Secretarial Auditor have not reported
+any instances of frauds committed in the Company by
+its Officers or Employees to the Audit Committee and/
+or Board under section 143(12) of the Act.
+(f)
+The Company has made an application to the BSE
+Limited and National Stock Exchange of India Limited
+for obtaining NOC of the stock exchanges, upon receipt
+of NOC, the application shall be filed with the National
+Company Law Tribunal.
+3.
+2.
+41
+Statutory Reports Financial Statements
+Board's Report
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+1. The Board of Directors of the Company at its meeting
+held on November 1, 2023 has approved the Composite
+Scheme of Arrangement for (1) Amalgamation of
+Sun Pharmaceutical Medicare Limited, Green Eco
+Development Centre Limited, Faststone Mercantile
+Company Private Limited, Realstone Multitrade Private
+Limited, Skisen Labs Private Limited, Wholly-owned
+Subsidiaries of the Company with the Company and
+(2) Reclassification of general reserves to retained
+earnings, subject to necessary approvals required under
+Other Disclosures
+The Company has complied with the applicable Secretarial
+Standards as amended from time to time.
+Secretarial Standards
+the Companies Act, 2013. This Composite Scheme
+of Arrangement is in supersession of the Scheme of
+Amalgamation approved by the Board on May 30, 2022.
+the Directors have devised proper systems to ensure
+compliance with the provisions of all applicable
+laws and that such systems were adequate and
+operating effectively.
+Acknowledgements
+Your Directors wish to thank all stakeholders, employees
+and business partners, Company's bankers, medical
+professionals and business associates for their continued
+support and valuable cooperation.
+Independent Director
+Mr. Sanjay Asher
+Independent Director
+Ms. Rama Bijapurkar
+Mr. Gautam Doshi
+Lead Independent Director
+Managing Director²
+Independent Director
+Designation
+Dr. Pawan Goenka
+Mr. Dilip Shanghvi
+Directors:
+Name of Director and Key
+Managerial Personnel
+Ratio of the remuneration of each Director to the median remuneration of the employees of the Company for FY24 and
+the percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during FY24:
+(i)
+ANNEXURE - A
+Statutory Reports Financial Statements
+Board's Report
+Corporate Overview
+42
+Patient First. Always.
+Aalok Shanghvi
+Whole-time Director
+(DIN: 01951829)
+Place: Mumbai
+Date: May 22, 2024
+Chairman and Managing Director
+(DIN: 00005588)
+Dilip Shanghvi
+For and on behalf of the Board of Directors
+The Directors also wish to express their gratitude to
+investors for the faith that they continue to repose in
+the Company.
+The draft Annual Return as required under sub-section (3)
+of Section 92 of the Act in form MGT-7 is made available on
+the website of the Company and can be accessed at https://
+sunpharma.com/annual-return.
+Mr. Rolf Hoffmann³
+Annual Return
+Regulatory Orders
+In the opinion of the Board of Directors, the comment in the
+Auditor's Report is self-explanatory. Further, the Board of
+Directors confirms that subsequently the feature of recording
+audit trail has been enabled in compliance with the relevant
+legal requirements, as on the date of the Board meeting.
+The Auditor's Report contains a comment on the
+requirement of maintenance of books of account which
+states that "the Company has used accounting software
+for maintaining its books of account which have a feature
+of recording audit trail (edit log) facility and the same has
+operated throughout the year for all relevant transactions
+recorded in the software except that, audit trail feature
+is not enabled for certain changes made using privileged/
+administrative access rights, as described in note 55(11) to
+the standalone Ind AS financial statements. Further, during
+the course of our audit we did not come across any instance
+of audit trail feature being tampered with in respect of
+accounting software where audit trail has been enabled."
+The Auditor's Report for the financial year 2023-24 has been
+issued with an unmodified opinion.
+SRBC & CO LLP, Chartered Accountants, (Firm's
+Registration. No. 324982E/E300003), have been
+re-appointed as the Statutory Auditor of the Company for a
+period of 5 (five) years at the 30th Annual General Meeting
+of the Company to hold office till the conclusion of the
+35th Annual General Meeting of the Company.
+Statutory Auditor
+impede the Company's objectives. It also continuously
+monitors shifts in the internal and external landscapes
+that may give rise to new risks. Risks such as financial,
+operational, sectoral, sustainability, cyber, strategic,
+compliance, social, geopolitical, third-party, and others
+are systematically classified. These are meticulously
+documented in a risk register, which includes comprehensive
+details like the risk area, description, rating, underlying
+causes, mitigation strategies, and action plans. This register
+is updated regularly to reflect the evolving risk environment.
+Auditors
+Based on our verification of the Company's books, papers,
+minute books, forms and returns filed and other records
+maintained by the Company and also the information
+provided by the Company, its officers, agents and authorised
+representatives during the conduct of secretarial audit, we
+hereby report that in our opinion, the Company has, during
+the audit period covering the financial year ended on March
+31, 2024, complied with the statutory provisions listed
+hereunder and also that the Company has proper Board-
+processes and compliance-mechanism in place to the extent,
+in the manner and subject to the reporting made hereinafter:
+Our Company has instituted a holistic Enterprise Risk
+Management (ERM) Framework. This framework is
+instrumental in identifying, evaluating, prioritising, and
+managing critical risks that could impact our strategic and
+operational goals. The ERM is pivotal in harmonising the
+organisation's risk appetite with its strategic direction,
+refining risk response decisions, minimising unexpected
+operational disruptions and losses, and bolstering
+stakeholder confidence.
+SUN
+Scan the QR code to view the Synopsis
+of the Risk Management Policy
+Secretarial Auditor
+The Board of Directors has established a Risk Management
+Committee to oversee the spectrum of organisational risks
+diligently. Detailed insights into the committee's operations
+are provided in the Corporate Governance Report, an
+integral part of this document. The committee evaluates
+the effectiveness of risk mitigation strategies, ensuring
+they are robust and responsive. In line with this, the Board
+has endorsed a comprehensive Risk Management Policy,
+a Synopsis of which can be accessed on our website at
+https://sunpharma.com/policies/.
+The Company's operational management diligently oversees
+the internal control milieu, ensuring the swift and thorough
+implementation of audit recommendations.
+Governed by the Audit Charter sanctioned by the Board's
+Committee, the GIA's operations are meticulously defined
+to facilitate audits of the highest standard. The Audit
+Committee regularly scrutinises pivotal findings, imparts
+strategic direction, and evaluates the GIA's performance.
+The GIA team is an assembly of professionals with
+credentials such as Chartered Accountants, Certified
+Internal Auditors, Certified Information System Auditors,
+Certified Fraud Examiners, Company Secretaries, MBAs,
+and Engineers. This department is instrumental in providing
+assurance and strategic counsel to management, aiming to
+refine the Company's procedural and systemic efficiency
+and effectiveness.
+The Global Internal Audit Function (GIA) operates with
+autonomy and authority at the corporate echelon, bolstered
+by the expertise of renowned external audit firms. This
+function conducts comprehensive risk-based audits across
+the Company's spectrum of operations, governance, risk
+management, and internal controls as necessitated. The
+GIA systematically reviews all business units and support
+functions on a rotational basis, ensuring the robustness and
+efficacy of business process controls. These evaluations
+encompass the architecture of financial and operational
+controls, their functional effectiveness, and the strategies
+for risk mitigation.
+Global Internal Audit
+39
+Statutory Reports Financial Statements
+Board's Report
+Corporate Overview
+d.
+C.
+Enterprise Risk Management
+The Board had appointed KJB & CO LLP, Practicing
+Company Secretaries, to undertake the Secretarial Audit of
+the Company for FY24. The Secretarial Audit Report in the
+Form No. MR - 3 for the year is provided as 'Annexure - C1'
+to this Report.
+The Secretarial Audit Report for the year does not contain
+any qualification, reservation or adverse remark.
+In accordance with the provision of Regulation 24A of the
+Listing Regulations, Secretarial Audit of two material unlisted
+Indian subsidiaries of the Company namely, Sun Pharma
+Laboratories Limited (SPLL) and Sun Pharma Distributors
+Limited (SPDL), was undertaken by KJB & CO LLP, Practicing
+Company Secretaries and the Secretarial Audit Reports issued
+by them are provided as 'Annexure - C2' and 'Annexure - C3'
+respectively to this Report. The Secretarial Audit Reports for
+these material unlisted Indian subsidiaries do not contain any
+qualification, reservation or adverse remark.
+Company has complied with provisions relating to the
+constitution of Internal Complaints Committee under the
+Sexual Harassment of Women at Workplace (Prevention,
+Prohibition and Redressal) Act, 2013.
+There were two complaints received during the year. All
+the complaints were disposed of and no complaints were
+pending as on the end of March 31, 2024.
+Your Company strongly believes in providing a safe and
+harassment free workplace for each and every individual
+working for the Company through various interventions and
+practices. It is the continuous endeavour of the Management
+of the Company to create and provide an environment
+to all its employees that is free from discrimination and
+harassment including sexual harassment. The Company has
+adopted a policy on prevention, prohibition and redressal of
+sexual harassment at workplace in line with the provisions of
+the Sexual Harassment of Women at Workplace (Prevention,
+Prohibition and Redressal) Act, 2013 and the Rules made
+thereunder. The Company has arranged various interactive
+awareness workshops in this regard for the employees at the
+manufacturing sites, R & D set ups & corporate office during
+the year under review.
+Disclosure under the Sexual Harassment of Women
+at Workplace (Prevention, Prohibition and Redressal)
+Act, 2013
+Your Directors would like to take this opportunity to express
+their gratitude and appreciation for the passion, dedication
+and commitment of the employees and look forward to the
+continued contribution.
+Statutory Reports Financial Statements
+Board's Report
+Corporate Overview
+FY24 was an exciting year for us. Our dedicated workforce
+worked relentlessly to ensure medicines continue to reach
+patients who rely on us. Driven by Sunology, our employees,
+who are spread across R&D centers, manufacturing sites,
+corporate offices and sales offices globally, enabled us in
+delivering a higher performance and stronger growth. The
+priority for the Human Resource function continued to
+provide a work environment which is safe, diverse, inclusive
+and full of growth opportunities. Going forward, focus will
+be on further enhancing our employer brand, providing
+growth & development opportunities to our employees
+along with focus on high performance and effectiveness.
+Human Resources
+The information on conservation of energy, technology
+absorption and foreign exchange earnings and outgo as
+stipulated under Section 134(3)(m) of the Act read with Rule
+8 of the Companies (Accounts) Rules, 2014, is provided as
+'Annexure - E' to this Report.
+Conservation of Energy, Technology Absorption and
+Foreign Exchange Earnings and Outgo
+The Annual Report on CSR activities containing details of
+expenditure incurred by the Company and brief details
+on the CSR activities are provided in 'Annexure - D' to
+this Report.
+Scan the QR code to view
+the CSR Policy
+In compliance with the requirements of Section 135
+of the Act read with the Companies (Corporate Social
+Responsibility Policy) Rules, 2014, the CSR Policy of the
+Company is available on the website of the Company and
+can be accessed at https://sunpharma.com/policies.
+Corporate Social Responsibility ("CSR")
+presentations.
+Business Responsibility and Sustainability Report
+The Business Responsibility and Sustainability Report of the
+Company for the year ended March 31, 2024, is provided
+in a separate section and forms part of this Annual Report
+and is also made available on the website of the Company
+at https://sunpharma.com/investors-annual-reports-
+The Cost Audit Report for the year does not contain any
+qualification, reservation or adverse remark.
+The Company has maintained the Cost Records as specified
+by the Central Government under Section 148(1) of the Act.
+The Board has appointed K D & Co, Cost Accountants,
+(Firm's Registration No. 004076) as Cost Auditor of the
+Company for conducting Cost Audit in respect of Bulk
+Drugs & Formulations of the Company for FY24.
+Cost Auditor
+40
+Patient First. Always.
+There are no significant and material orders passed by the
+regulators or courts or tribunals which impact the going
+concern status.
+Independent Director
+The ERM team collaborates with department heads to
+pinpoint potential internal and external events that could
+Non-executive Director
+(Wholly-Owned
+Purchase and Sale of Property, Plant and
+Equipment
+Limited
+Laboratories
+On-going
+Purchase and sale of Goods
+Sun Pharma
+2.
+Subsidiary)
+Reimbursement of expenses paid and received
+Subsidiary)
+(Wholly-Owned
+Salient terms of the
+contracts or arrangements
+Duration of
+the contracts/
+arrangements/
+transactions
+Nature of contracts/ arrangements/transactions
+relationship
+1.
+No. and nature of
+Name(s) of the
+related party
+Sr.
+Details of material contracts or arrangement or transactions at arm's length basis – NIL. However, the Company's
+transactions with related parties which are material as per the Company's Policy on Materiality of and Dealing with
+Related Party Transactions, are as follows:
+-
+Sun Laboratories Revenue from Contracts with Customers, Net of On-going
+FZE
+Returns
+2.
+Receiving and Rendering of Services
+Loans taken, Loans Repaid
+Mr. Sudhir Valia
+V.
+The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India Act,
+1992 ("SEBI Act"):
+The aggregate amount of Not
+transactions for FY24 was applicable
+*44,978.52 Million
+Limited
+On-going
+Revenue From Contracts with Customers, Net
+of Returns
+Sun Pharma
+3.
+Revenue from Contracts with Customers, Net of
+Returns
+Reimbursement of expenses paid and received
+Payment towards Lease Liabilities
+Interest Expense,
+NIL
+The aggregate amount of Not
+transactions for FY24 was applicable
+273,555.77 Million
+NIL
+Not
+applicable
+Amount paid
+as advances,
+as on March
+31, 2024 if
+any:
+any:
+Date(s) of
+approval
+by the
+Board, if
+The aggregate amount of
+transactions for FY24 was
+10,480.18 Million
+or transactions including the
+value, if any
+Lease Rent Received
+1. Details of contracts or arrangements or transactions not at arm's length basis - NIL
+Distributors
+(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act
+and Rule 8(2) of the Companies (Accounts) Rules, 2014)
+4.72
+121.54
+7.09
+6.25
+7.53
+2.63
+7.80
+11.50
+89.38
+0.00
+Not Applicable³
+12.55
+Ratio of remuneration of
+each Director to median
+remuneration of employees
+Notes:
+Mr. Anoop Deshpande
+Chief Financial Officer
+Mr. C. S. Muralidharan
+Mr. Aalok Shanghvi5
+Whole-time Director
+Whole-time Director
+Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in
+sub-section (1) of section 188 of the Act, including certain arm's length transactions under third proviso thereto.
+Mr. Sailesh Desai4
+Increase (Decrease) in
+Remuneration¹ in FY24
+(in percentage)
+3.25
+Key Managerial Personnel (KMP):
+30.37
+101.50
+ANNEXURE - B
+AOC - 2
+Financial Statements
+43
+Statutory Reports
+Board's Report
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Average percentage increase made in the salaries of employees other than the managerial personnel in the financial
+year ending March 31, 2024 was approximately 11.29% and the average increase in the managerial personnel
+remuneration was 9.50%.
+(iv) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last
+financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof
+and point out if there are any exceptional circumstances for increase in the managerial remuneration:
+(iii) The number of permanent employees on the rolls of the Company as on March 31, 2024: 19,530
+(ii) The percentage increase in the median remuneration of employees in FY24 (Median 2024/Median 2023): 4.67%
+(v) It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial
+Personnel and other Employees.
+4. Mr. Sailesh Desai (DIN: 00005443) retired and ceased to be the Director of the Company from March 31, 2024.
+7.50
+Not Applicable5
+5. Mr. Aalok Shanghvi (DIN: 01951829) has been appointed as Whole-time Director of the Company effective from June 1, 2023.
+His remuneration for the entire year of FY24, is considered the purpose of calculation of ratio.
+Not Applicable
+Not Applicable
+7.50
+Company Secretary and Compliance officer
+1. Remuneration to Independent Directors consists of sitting fees and commission. Remuneration to Non-Executive Director consists only
+of sitting fees. The percentage increase / (Decrease) in Remuneration in FY24 is calculated on the basis of cost to company for Managing
+Director, Whole-time Directors and KMPs.
+2. Also appointed as the Chairman of the Board effective from May 22, 2024.
+3. Mr. Rolf Hoffmann (DIN: 10200311) has been appointed as Independent Director of the Company effective from June 15, 2023.
+33.90
+15.70
+Govt. Primary
+School, Talavdi
+Govt. Primary
+School, Bhikhapura
+Govt. Primary
+School, Kadachala
+0.15
+Govt. Primary
+School, Galabpura
+Ideal School of
+Bhadi
+Primary School,
+Golibar, Ankleshwar -
+393001
+Primary School of
+Sanjali
+Anjuman School of
+Kharod
+0.70 CSR00026567
+March 31,
+2024
+96
+2024
+95
+95
+2024
+0.15
+March 31,
+94
+0.15
+March 31,
+March 31,
+2024
+Govt. Primary
+School, Abhetva
+Govt. Primary School,
+Tarkhanda, Halol - 389360
+Govt. Primary School, Abhetva,
+Halol -383950
+Govt. Primary School, Jepura,
+Govt. Primary
+School, Tarkhanda
+Grill (1 No.)
+MDM Kitchen (1 No.)
+93
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+MDM Shed with Safety
+Shree Halol Mahajan
+Arogyamandal, Opp. ST Bus
+stand Halol, Godhra-Vadodara
+Road, Halol 389350
+389390
+The Secondary School
+Jambughoda, Jambughoda -
+Govt. Primary School, Ujeti,
+Halol 389350
+Halol 389350
+Govt. Primary School,
+Vitthalpura, Halol - 383950
+Shree Narayan High School,
+Tarkhanda, Halol - 389350
+Govt. Primary School, Jepura,
+Halol - 389360
+Govt. Primary School,
+Champaner, Halol - 389360
+Govt. Primary School, Ghodi,
+Halol 383960
+Halol -383960
+Govt. Primary School, Jepura,
+Govt. Primary School,
+Galabpura, Halol - 383950
+Govt. Primary School, Abhetva,
+Halol 383950
+Govt. Primary School, Talavdi,
+Halol 389360
+Govt. Primary School,
+Bhikhapura, Halol - 389350
+Govt. Primary School,
+Kadachala, Halol - 389350
+Govt. Primary School, Abhetva,
+Halol 389350
+Govt. Primary School, Intwadi,
+Halol 389360
+Primary School of Sanjali,
+Ankleshwar - 394115
+Anjuman School of Kharod,
+Ankleshwar - 394115
+Ideal School of Bhadi,
+Ankleshwar - 394115
+Shree Halol
+Mahajan
+Arogyamandal
+The Secondary
+School Jambughoda
+Govt. Primary
+School, Ghodi
+Govt. Primary
+School, Ujeti
+Govt. Primary
+School, Champaner,
+Govt. Primary
+School, Jepura
+Govt. Primary
+School, Abhetva
+Govt. Primary
+School, Jepura
+Govt. Primary
+School, Jepura
+Govt. Primary
+School, Vitthalpura.
+Shree Narayan High
+School, Tarkhanda
+Govt. Primary
+School, Intwadi
+2024
+87
+March 31,
+March 31,
+86
+2024
+0.15
+March 31,
+85
+2024
+0.15
+0.38
+March 31,
+2024
+0.15
+March 31,
+83
+2024
+0.15
+March 31,
+Public Announcement
+System (1 No.)
+Public Announcement
+System (1 No.)
+Public Announcement
+System (1 No.)
+Public Announcement
+System (1 No.)
+Public Announcement
+System (1 No.)
+Public Announcement
+System (1 No.)
+Boundary Wall
+Construction (1 No.)
+STEM Lab (1 No.)
+84
+2024
+March 31,
+0.64
+92
+2024
+0.15
+March 31,
+91
+94
+2024
+0.15
+March 31,
+90
+2024
+0.95
+March 31,
+89
+2024
+0.56
+March 31,
+88
+2024
+0.15
+Digital Library (1 No.)
+Executive Summary of the
+Public Announcement
+Qualitative Findings
+* Percentages have been rounded-off in all the tables.
+• Higher inclination and interest towards research field/
+career (reported by 77-90% students)
+• Increased patents/grants/ awards (reported by 31-34%
+students, 47-68% faculty)
+• Improvement in high-quality research papers published
+(reported by 54% students, 79% faculty)
+• Higher research trainings undertaken (reported by 71%
+students, 79% faculty)
+• Improved high-quality research output (reported by 82%
+students, 89% faculty)
+• Increase in new research experiments undertaken (reported
+by 84% students, 95% faculty)
+Students & Faculty recounted qualitative outcomes as social
+implications of applied research, international collaborations
+& publications.
+Self-assessment of outcomes of research facility as per
+students & faculty:
+Quality
+(Outcomes)
+Indicators
+The study brought some powerful voices describing the impact of the research laboratory from applied research to the
+agricultural fields, entrepreneurship, environment, and much more. These showcase the effectiveness of equipment like
+LC-MS, AAS, and others in testing soil, milk, water, and products of farmers, women SHG members, entrepreneurs, by
+providing opportunities to the faculty and students to conduct research that directly influences the practices of farmers
+and industry bodies to adopt better products and techniques. In this mixed-methods research study, both quantitative
+and qualitative data were collected from a total of 220 participants who were impacted by the project. This included 145
+students and faculty as survey participants and 75 participants from qualitative interviews and focus group discussions.
+Specifically, the study used self-assessment method in the survey form to gauge the experiences and perceptions of the
+participants about impact of using the research lab facility developed by Sun Pharma, encapsulated here and substantiated
+with qualitative data:
+Sun Pharmaceutical Industries Limited ('Sun Pharma'), a leading global specialty generic pharmaceutical company,
+implemented a CSR Project 'Infrastructural Development for Pharma Research Laboratory' by setting up specialised
+equipment for carrying out scientific, dairy and agricultural research, implemented by Agricultural Development Trust (ADT),
+Baramati. The Social Impact Assessment Report of this project emanates from a robust, multi-stakeholder methodology, rich
+field data, participant narratives, and a comprehensive analysis of the findings keeping 'People at the Centre of Development'.
+This mixed-methods study found the project to be highly impactful with a multi-pronged impact felt by multiple stakeholders,
+such as students, faculty, farmers, women entrepreneurs, and so on. The study revealed a holistic impact of the research
+laboratory set-up, that is social, economic, environmental, health, and educational impacts. The outcomes and impact of
+the project were assessed along the AAAQ framework and OECD DAC Evaluation criteria revealing the robust design and
+implementation of the project.
+Impact Assessment Report
+ANNEXURE-D1
+Statutory Reports Financial Statements
+Board's Report
+Corporate Overview
+Quantitative Findings*
+• Testing of products has been newly introduced in the
+following groups.
+• Farmers recounted benefits of testing toxins, diseases,
+soil, fodder etc. and receiving sustainable solutions for
+agriculture and dairy farming on cattle health, milk quality,
+and crops
+• Women entrepreneurs stated benefits of testing and
+maximising reach of nutritious products
+82
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Community participants recounted benefits of improved
+credibility of their products through nutritional testing &
+labelling
+• Women SHG members & entrepreneurs highly satisfied with
+nutritional testing and support from ADT/ NGO
+• Dairy & Agriculture farmers highly satisfied with animal
+disease diagnosis, milk & feed testing, soil & water testing
+and advisory support facilities by ADT/ KVK
+Students & faculty expressed they were highly motivated
+towards taking up new research
+Qualitative Findings
+• High ratings given to availability & quality of
+consumables by 97% students, 95% faculty
+• High ratings given to safety arrangements at the lab by
+98% students, 95% faculty
+• High faculty satisfaction with lab use for research
+opportunities and contribution to their field (reported by
+79% faculty)
+High satisfaction levels (reported by 95% students,
+100% faculty)
+•
+Self-assessment of outcomes of research facility as per
+students & faculty:
+Quantitative Findings
+levels)
+(Satisfaction
+Indicators
+Quality
+"This year I sold two tonnes of only mango pickle. The testing has greatly benefited us as we can test our products and know
+about the contents. We can now tell our customers that our products are preservative-free as they have been tested. I am
+also training women all over Maharashtra wherever I am invited, on preparing chutneys, pickles, hotel-style gravies, and
+vegetables and taking orders for all these food items. I can take a training for easily up to 50 women at a time, and they have
+got excellent results. I give them continued guidance even after training to set up and grow their business." - SHG Member -
+Spices and Pickles Business, Nimbut
+• Startups shared benefits of testing and launching their
+products as natural and healthy
+58
+Patient First. Always.
+Chairman and Managing Director
+(DIN: 00005588)
+(DIN: 00001835)
+Ideal School of Bhadi,
+Ankleshwar
+Govt. Primary School,
+Galabpura, Halol
+Govt. Primary School,
+Abhetva, Halol
+Govt. Primary School,
+Talavdi, Halol
+394115
+394115
+Primary School of Sanjali,
+Ankleshwar
+Anjuman School of Kharod,
+Ankleshwar
+393001
+Primary School, Golibar,
+Ankleshwar
+Interactive Board
+and UPS (1 No.)
+389350
+389390
+389350
+Shree Halol Mahajan
+Arogyamandal, Opp. ST
+Bus stand Halol, Godhra-
+Vadodara Road, Halol
+Govt. Primary School,
+Ujeti, Halol
+The Secondary School
+Jambughoda, Jambughoda
+389350
+389360
+389360
+Govt. Primary School,
+Jepura, Halol
+Govt. Primary School,
+Champaner, Halol
+Govt. Primary School,
+Ghodi, Halol
+Shree Narayan High School, 389350
+Tarkhanda, Halol
+Kidney Dialysis
+Machine Set up
+(HaemodySB Machine
+Nipro 55 plus) (1 No.)
+System (1 No.)
+Public Announcement
+System (1 No.)
+Public Announcement
+System (1 No.)
+Public Announcement
+System (1 No.)
+Public Announcement
+System (1 No.)
+Public Announcement
+System (1 No.)
+394115
+MDM Kitchen (1 No.)
+383950
+389360
+Date: May 22, 2024
+Dilip Shanghvi
+Rama Bijapurkar
+Chairperson of CSR Committee
+Place: Mumbai
+Reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5)
+Not Applicable
+1. The date when creation of asset is recognised / acknowledged by the Company based on inputs from the Implementing Agency
+Note:
+383950
+Govt. Primary School,
+Vitthalpura, Halol
+389360
+Govt. Primary School,
+Jepura, Halol
+389360
+383950
+389360
+389360
+383950
+383950
+383950
+Govt. Primary School,
+Bhikhapura, Halol - 389350
+Govt. Primary School,
+Kadachala, Halol
+Govt. Primary School,
+Abhetva, Halol
+Govt. Primary School,
+Intwadi, Halol
+Govt. Primary School,
+Tarkhanda, Halol
+Govt. Primary School,
+Abhetva, Halol
+Govt. Primary School,
+Jepura, Halol
+383950
+2024
+7. Details of Unspent CSR amount for the preceding three financial
+March 31,
+Govt. Primary School, Lohar 455001
+Pipliya Dewas
+Govt. Primary School,
+Mukharji Nagar
+Govt. Primary School,
+Diggiraj Nagar, Dewas
+Govt. Middle School, Awas 455001
+Nagar, Dewas
+Govt. Primary School, Kelod, 455001
+Dewas
+School Benches and
+Desk Set (20 Nos.)
+School Benches and
+Desk Set (13 Nos.)
+School Benches and
+Desk Set (20 Nos.)
+School Benches and
+Desk Set (35 Nos.)
+School Benches and
+Desk Set (40 Nos.)
+School Benches and
+Desk Set (20 Nos.)
+Classroom (1 No.)
+Dewas 455001
+Primary School, Intwadi -
+389360
+Jambughoda - 389390
+Dewas 455001
+Govt. Middle School, Awas
+Nagar, Dewas 455001
+Govt. Primary School, Lohar
+Pipliya Dewas - 455001
+Govt. Primary School, Mukharji
+Nagar - 455001
+Govt. Primary School, Diggiraj
+Nagar, Dewas - 455001
+Govt. Primary School, No. 04
+Govt. Primary School, Kelod,
+Govt. Primary School,
+No. 04 Dewas
+Govt. Primary School,
+Intwadi
+Govt. Primary School,
+Jambughoda
+2024
+0.81
+Govt. Primary School, No. 04 455001
+January 11,
+2024
+0.95
+March 12,
+7.
+1, 2023
+0.06
+November
+6.
+13, 2023
+0.12
+October
+8.
+455001
+455001
+Dewas
+0.56
+February
+12
+Gram Panchayat,
+Puthupattu
+23, 2024
+0.59
+February
+11
+2024
+0.11
+March 12,
+10.
+Jambughoda
+2024
+Classroom (1 No.)
+Jambughoda - 389390
+Govt. Primary School,
+0.81
+March 28,
+9.
+389390
+Govt. Primary School,
+Jambughoda
+Classroom (1 No.)
+389360
+Primary School, Intwadi
+5.
+26, 2024
+2023
+October 7,
+registered owner
+Date of
+creation or
+acquisition
+SI.
+Not Applicable
+TOTAL
+2022-23
+3.
+2021-22
+2.
+2020-21
+1.
+No.
+8.
+Date of transfer
+Amount
+financial
+Deficiency
+if any
+Amount
+remaining to
+be spent in
+succeeding
+Amount transferred to a fund specified
+under Schedule VII as per second
+proviso to section 135(6), if any
+years
+Amount
+spent in the
+reporting
+Financial Year
+Balance
+Amount in
+unspent CSR
+Account
+under section
+135(6)
+135 (6)
+under section
+years
+of the
+capital
+asset¹
+4.
+30, 2023
+0.06
+September
+3.
+9, 2023
+0.04
+September
+2.
+Govt. Primary School,
+Kelod
+2023
+0.06
+August 12,
+1.
+Address of entity
+Pincode
+Address of location
+of assets
+Short Particulars of
+the property/asset
+Details of the entity or public authority or beneficiary of the
+Amount
+of CSR
+spent
+(in
+Million)
+Details relating to the asset so created or acquired through CSR spent in the financial year are given below:
+Number of capital assets created/ acquired: 239
+Whether any capital assets have been created or acquired through Corporate Social Responsibility amount
+spent in the financial year: Yes
+Name of entity
+CSR
+Registration
+No., if
+applicable
+0.10
+13
+October
+1.28
+20
+20
+Ujjaini
+Anganwadi No. 228,
+At. Post-Pimpalgaon
+0.13
+March 30,
+2024
+19
+Ujjaini
+Anganwadi No. 226,
+At. Post-Pimpalgaon
+0.13
+March 30,
+2024
+March 30,
+2024
+18
+March 30,
+2024
+17
+Address of entity
+Name of entity
+Address of location
+of assets
+Short Particulars of
+the property/asset
+Details of the entity or public authority or beneficiary of the
+CSR
+Registration
+No., if
+applicable
+registered owner
+Amount
+of CSR
+spent
+(in
+Million)
+asset¹
+0.13
+0.55
+Smart E-learning
+Unit (1 No.)
+Anganwadi No. 226, At.
+Post-Pimpalgaon Ujjaini, Tal.
+Dist. Ahmednagar
+Anganwadi No. 228, At.
+Post-Pimpalgaon Ujjaini, Tal.
+Dist. Ahmednagar
+Anganwadi No. 26 At.
+Post-Navnagapur
+Anganwadi No. 171,
+At. Post-Navnagapur
+Anganwadi No. 176,
+At. Post- Navnagapur
+Zila Parishad primary Z P School Wadgaon Gupta, Tal.
+School Wadgaon
+Ahmednagar - 414111
+Grampanchayat Vilad Grampanchayat Vilad, Tal. Dist.
+2024
+0.13
+March 30,
+23
+23
+2024
+0.13
+March 30,
+22
+Gupta
+2024
+0.39
+March 30,
+21
+Dist. Ahmednagar
+414111
+Grampanchayat Vilad, Tal.
+414601
+414601
+capital
+of the
+No.
+creation or
+acquisition
+Smart E-learning
+Unit (1 No.)
+Smart E-learning Unit
+(1 No.)
+Multipurpose Hall
+(1 No.)
+Dental Implant
+Equipment (1 No.)
+RO Purifier 1500 LPH Govt. Girls Higher Secondary 603306
+Gram Panchayat,
+Puthupattu Panchayat, Dist.
+Chengalpattu
+Anganwadi Pragati Nagar, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar - 414002
+Anganwadi No. 188,
+At. Post-Vilad, Tal. Dist.
+Ahmednagar - 414111
+Zila Panchayat School Islak, Tal.
+Dist. Ahmednagar - 414111
+Govt. Girls Higher Secondary
+School, Maduranthakam, Dist.
+Chengalpattu - 603306
+Welcare Hospital Kharod
+Village, Ankleshwar Block, Dist.
+Bharuch 394115
+Gram Panchayat, Puthupattu
+Panchayat, Dist. Chengalpattu
+- 604152
+Zila Panchayat
+School Islak, Tal.Dist.
+Ahmednagar
+Anganwadi Pragati
+Nagar, At. Post-
+Navnagapur
+Anganwadi no. 188,
+At. Post-Vilad
+Welcare Hospital
+Kharod
+Govt. Girls Higher
+Secondary School
+Maduranthakam
+Muktidham, Silvassa Muktidham, Silvassa - 396230
+0.13
+March 30,
+2024
+16
+0.13
+February 2,
+2024
+15
+9, 2023
+0.46
+September
+14
+25, 2023
+School, Maduranthakam,
+Year
+Dist. Chengalpattu
+Welcare Hospital Kharod
+Village, Ankleshwar Block,
+Dist-Bharuch
+Anganwadi Pragati Nagar,
+At. Post-Navnagapur, Tal.
+Dist. Ahmednagar
+Anganwadi no. 188,
+At. Post-Vilad, Tal.Dist.
+Ahmednagar
+SI.
+Date of
+414111
+Pincode
+Anganwadi No. 249,
+At. Post-Islak, Tal.Dist.
+Ahmednagar
+Smart E-learning
+Unit (1 No.)
+Smart E-learning
+Unit (1 No.)
+- 414111
+Anganwadi No. 226, At. Post-
+Pimpalgaon Ujjaini, Tal. Dist.
+Ahmednagar - 414601
+Anganwadi No. 228, At. Post-
+Pimpalgaon Ujjaini, Tal. Dist.
+Ahmednagar - 414601
+Anganwadi No. 249, At. Post-
+Islak, Tal. Dist. Ahmedngar
+Anganwadi No. 249,
+At. Post-Islak
+55
+Board's Report
+Statutory Reports Financial Statements
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+414111
+414002
+394115
+(1 No.)
+604152
+RO Purifier 1500LPH
+(1 No.)
+396230
+389390
+Govt. Primary School,
+Jambughoda
+Muktidham, Silvassa
+Classroom (1 No.)
+Zila Panchayat School Islak, 414111
+Tal. Dist. Ahmednagar
+Anganwadi No. 139,
+Nagapur
+Anganwadi No. 140,
+Nagapur
+Anganwadi No. 513,
+Kharekarjune
+CSR Account
+Preceding
+Financial
+• Narcotic Drugs and Psychotropic Substances Act, 1985;
+• Drugs (Price Control) Order, 2013;
+• Drugs and Cosmetics Act, 1940;
+We further report that, having regard to the compliance
+system prevailing in the Company and on examination of
+the relevant documents and records in pursuance thereof,
+on the basis of the representations made, the Company
+has identified and complied with the with various laws, as
+amended from time to time, applicable to the Company
+which inter-alia include:
+Based on the information received and records maintained,
+we further report that there are adequate systems and
+processes in the Company commensurate with the size
+and operations of the Company to monitor and ensure
+compliance with applicable laws, rules, regulations
+and guidelines.
+(c) On verification of minutes, we have not found any
+dissent / disagreement on any of the agenda items
+discussed in the Board and Committee meetings
+from any of the Directors and all the decisions are
+carried through.
+(b) Adequate notice of at least seven days was given to all
+directors to schedule the Board Meetings and Meetings
+of Committees. Agenda and detailed notes on agenda
+were made available in advance in adequate time
+before the meetings and a system exists for Directors
+for seeking and obtaining further information and
+clarifications on the agenda items before the meeting
+and for meaningful participation at the meeting.
+(a) The Board of Directors of the Company is duly
+constituted with a proper balance of Non-Executive
+Directors and Independent Directors. There were no
+changes in the composition of the Board of Directors
+that took place during the period under review.
+We further report that:
+During the period under review the Company has complied
+with the provisions of the Act, Rules, Regulations, Guidelines,
+Standards, etc. mentioned above to the extent applicable.
+We have also examined compliance with the applicable
+clauses of the Secretarial Standards with respect to
+meetings of Board of Directors (SS-1) and General Meetings
+(SS-2) issued by The Institute of Company Secretaries of
+India under the provisions of Companies Act, 2013.
+•
+The Securities and Exchange Board of India
+(Registrars to an Issue and Share Transfer Agents)
+Regulations, 1993 regarding the Companies Act
+and dealing with client - Not applicable to the
+Company for the year under review;
+51
+Statutory Reports Financial Statements
+Board's Report
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(h) The Securities and Exchange Board of India (Issue
+and Listing of Debt Securities) Regulations, 2008
+Not applicable to the Company for the year
+under review;
+(g) The Securities and Exchange Board of India
+(Delisting of Equity Shares) Regulations, 2021
+- Not applicable to the Company for the year
+under review;
+The Securities and Exchange Board of India
+(Issue of Capital and Disclosure Requirements)
+Regulations, 2018 - Not applicable to the
+Company for the year under review;
+(f)
+(e) The Securities and Exchange Board of India
+(Share Based Employee Benefits Sweat Equity)
+Regulations, 2021 - Not applicable to the
+Company for the year under review;
+(d) The Securities and Exchange Board of India
+(Buyback of Securities) Regulations, 2018 -
+Not applicable to the Company for the year
+under review;
+(c) The Securities and Exchange Board of India
+(Substantial Acquisition of Shares and Takeovers)
+Regulations, 2011 - Not applicable to the
+Company for the year under review;
+(i)
+Drugs and Magic Remedies (Objectionable
+Advertisements) Act, 1954;
+• Legal Metrology Act, 2009.
+For KJB & CO LLP,
+Wherever required, we have obtained the Management representation about the compliance of laws, rules and
+regulations and happening of events etc.
+We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
+We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
+correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct
+facts are reflected in secretarial records. We believe that the processes and practices we followed provide a reasonable
+basis for our opinion.
+Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to
+express an opinion on these secretarial records based on our audit.
+4.
+3.
+2.
+1.
+Our report of even date is to be read along with this letter.
+Sun Pharma Distributors Limited,
+The Members,
+To,
+Financial Statements
+Statutory Reports
+Board's Report
+Corporate Overview
+ANNEXURE - 1
+52
+Patient First. Always.
+This report is to be read with our letter of even date which
+is annexed as Annexure - 1 and forms an integral part of
+this report.
+Place: Vadodara.
+UDIN: F012908F000410426
+Date: May 21, 2024
+FCS No. 12908
+C. P. No. 20120
+Alpeshkumar Panchal
+Partner
+Firm Unique Identification No.- L2020MH006601
+Peer Review Certificate No.- 2797/2022
+Practicing Company Secretaries
+(b) The Securities and Exchange Board of India
+(Prohibition of Insider Trading) Regulations, 2015
+- Not applicable to the Company for the year
+under review;
+5.
+thereto from time to time Not applicable to the
+Company for the year under review;
+(a) The Securities and Exchange Board of India
+(Listing Obligations and Disclosure Requirements)
+Regulations, 2015 and amendments made
+ANNEXURE - 1
+To,
+The Members,
+Sun Pharma Laboratories Limited,
+Our report of even date is to be read along with this letter.
+1.
+2.
+3.
+4.
+5.
+6.
+49
+Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to
+express an opinion on these secretarial records based on our audit.
+We have not verified the correctness and appropriateness of the financial records and Books of Accounts of
+the Company.
+Wherever required, we have obtained the Management representation about the compliance of laws, rules and
+regulations and happening of events etc.
+The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
+responsibility of management. Our examination was limited to the verification of procedure on test basis.
+The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or
+effectiveness with which the management has conducted the affairs of the Company.
+For KJB & CO LLP,
+Practicing Company Secretaries
+Firm Unique Identification No.- L2020MH006601
+Peer Review Certificate No.- 2797/2022
+Alpeshkumar Panchal
+Partner
+FCS No. 12908
+We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
+correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct
+facts are reflected in secretarial records. We believe that the processes and practices we followed provide a reasonable
+basis for our opinion.
+Statutory Reports Financial Statements
+Board's Report
+Corporate Overview
+0.15
+(v) The following Regulations and Guidelines prescribed
+under the Securities and Exchange Board of India Act,
+1992 ("SEBI Act"): -
+(iv) Foreign Exchange Management Act, 1999 and the rules
+and regulations made thereunder to extent of Foreign
+Direct Investment, Overseas Direct Investment and
+External Commercial borrowings - Not applicable to
+the Company for the year under review;
+(iii) The Depositories Act, 1996 and the Regulations and
+bye-laws framed there under - Not applicable to the
+Company for the year under review;
+(ii) The Securities Contracts (Regulation) Act, 1956
+("SCRA") and the rules made there under - Not
+applicable to the Company for the year under review;
+(i) The Companies Act, 2013 ("the Act") and the rules
+made there under;
+We have examined the books, papers, minute books, forms
+and returns filed, and other records maintained by the
+Company for the financial year ended on March 31, 2024,
+according to the provisions of:
+Based on our verification of the Company's books, papers,
+minute books, forms and returns filed and other records
+maintained by the Company and also the information
+provided by the Company, its officers, agents and authorised
+representatives during the conduct of secretarial audit, we
+hereby report that in our opinion, the Company has, during
+the audit period covering the financial year ended on March
+31, 2024, complied with the statutory provisions listed
+hereunder and also that the Company has proper Board-
+processes and compliance-mechanism in place to the extent,
+in the manner and subject to the reporting made hereinafter:
+We have conducted the secretarial audit of the compliance
+of applicable statutory provisions and the adherence to good
+corporate practices by Sun Pharma Distributors Limited
+("the Company"). Secretarial Audit was conducted in a
+manner that provided us a reasonable basis for evaluating
+the corporate conducts/statutory compliances and
+expressing our opinion thereon.
+Sun Pharma Distributors Limited,
+[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies
+(Appointment and Remuneration Personnel) Rules, 2014]
+FOR THE FINANCIAL YEAR ENDED MARCH 31, 2024
+SECRETARIAL AUDIT REPORT
+Form No. MR-3
+The Members,
+To,
+ANNEXURE - C3
+Financial Statements
+Statutory Reports
+Board's Report
+Corporate Overview
+50
+Patient First. Always.
+Place: Vadodara.
+Date: May 21, 2024
+UDIN: F012908F000410351
+C. P. No. 20120
+-
+6.
+The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the
+responsibility of management. Our examination was limited to the verification of procedure on test basis.
+The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or
+effectiveness with which the management has conducted the affairs of the Company.
+Amount Unspent
+460.3 Million
+*0.3 Million
+12.1 Million
+*447.9 Million
+* 460.3 Million
+* 21.0 Million
+Nil
+481.3 Million
+(c) Amount spent on Impact Assessment, if applicable
+(d) Total amount spent for the financial year [(a)+(b)+(c)]
+(e) CSR amount spent or unspent for the financial year:
+(b) Amount spent in Administrative Overheads
+(in Million)
+(a) Amount spent on CSR Projects (both ongoing projects and other than ongoing projects)
+(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years
+(d) Amount required to be set off for the financial year, if any
+(b) Two percent of average net profit of the Company as per section 135(5)
+24,065.6 Million
+6.
+(a) Average Net Profit of the Company as per section 135(5)
+5.
+Executive Summary alongwith Web-link of Impact Assessment of CSR Projects carried out in pursuance of
+sub-rule (3) of Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable
+The impact assessment for Infrastructural Development for Pharma Research Laboratory Project (2020 - 2022) was
+carried out by Pluriversal Research and Action. The executive summary of the Impact Assessment Report is attached
+as 'Annexure - D1' to this report. The complete impact assessment report can be accessed at the Company's website at
+https://sunpharma.com/csr/.
+CSR projects approved by the Board - https://sunpharma.com/csr/
+CSR Policy - https://sunpharma.com/policies/
+Composition of CSR committee - https://sunpharma.com/committees-of-the-board/
+Web-Link where composition of CSR Committee, CSR Policy and CSR Projects approved by the Board are
+disclosed on the website of the Company
+(e) Total CSR obligation for the financial year [(b)+(c)-(d)]
+Total Amount Spent for
+the Financial Year
+Total Amount transferred to Unspent CSR
+Account as per section 135(6)
+Amount
+SI.
+No.
+Amount
+transferred
+Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any
+(v) Amount available for set off in succeeding financial years [(iii)-(iv)]
+460.3
+Amount
+(in Million)
+481.3
+(iv)
+Excess amount spent for the financial year [(ii)-(i)]
+(iii)
+Total amount spent for the financial year
+(ii)
+Two percent of average net profit of the company as per section 135(5)
+(i)
+Particulars
+SI.
+No.
+Financial Statements
+Statutory Reports
+Board's Report
+Corporate Overview
+(f) Excess amount for set off, if any
+54
+Patient First. Always.
+460.3
+Date of transfer
+Amount transferred to any fund specified under Schedule VII as
+per second proviso to section 135(5)
+Amount
+Name of the Fund
+Date of transfer
+3. Also appointed as Chairman of the Board effective from May 22, 2024.
+2. Re-designated as Member effective from May 26, 2023.
+1. Appointed as Chairperson of the Committee effective from May 26, 2023.
+4.
+Name of Director
+SI.
+Number of meetings
+Designation
+Composition of CSR Committee
+The Company's CSR policy encompasses the company's philosophy towards corporate social responsibility and lays
+down the guidelines and mechanism for undertaking socially useful programs for welfare & sustainable development
+of the community at large. The Company, through its CSR activities, strives to create maximum impact by leveraging its
+financial and human resources, networks and expertise. The CSR Policy and programs focus on the areas covered under
+Schedule VII of the Companies Act, 2013.
+2.
+1. Brief outline on CSR Policy of the Company
+Annual Report on Corporate Social Responsibility
+(CSR) Activities for FY24
+ANNEXURE - D
+53
+Statutory Reports Financial Statements
+Board's Report
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Place: Vadodara.
+Date: May 21, 2024
+UDIN: F012908F000410426
+C. P. No. 20120
+FCS No. 12908
+Partner
+Alpeshkumar Panchal
+Peer Review Certificate No.- 2797/2022
+Firm Unique Identification No.- L2020MH006601
+Practicing Company Secretaries
+For KJB & CO LLP,
+No.
+to Unspent
+in the CSR
+Committee
+of CSR Committee
+held during the year
+3.
+Notes:
+3
+3
+3
+3
+Non-Executive Non-Independent Director
+Non-Executive Independent Director
+Member
+Dr. Pawan Goenka
+4.
+Member
+Mr. Sudhir Valia
+3.
+2
+3
+3
+3
+Non-Executive Independent Director
+Managing Director³
+Member²
+Mr. Dilip Shanghvi
+2.
+Chairperson¹
+Ms. Rama Bijapurkar
+1.
+Number of meetings of
+CSR Committee attended
+during the year
+Nature of Directorship
+24
+Govt. Middle School,
+Awas Nagar
+Govt. Primary School,
+Lohar Pipliya
+Govt. Primary School,
+Mukharji Nagar
+Govt. Primary School,
+Diggiraj Nagar
+March 30,
+70
+2024
+0.50
+March 12,
+69
+Z. P. School, Islak,
+Ahmednagar
+2024
+0.25
+March 12,
+689
+69
+March 12,
+2024
+March 12,
+67
+2024
+0.25
+March 12,
+66
+2024
+0.50
+March 12,
+65
+2024
+0.25
+0.25
+2024
+71
+Halol 389370
+Govt. Primary School, Nimblak,
+Ahmednagar - 414111
+Govt. Primary School,
+Kharckajune, Ahmednagar -
+Govt. Primary School,
+Rameshra, Halol - 389350
+Govt. Primary School, Ghata,
+Govt. Primary School,
+Fatehpuri, Halol - 389370
+- 414601
+Govt. Primary School,
+Primary School - Bolhegaon,
+Ahmednagar - 414111
+Govt. Primary School, Sanjali,
+Ankleshwar - 394115
+Govt. Primary School, Kharod,
+Ankleshwar - 394115
+Govt. Primary School, Primary
+School Shedni, Ahmednagar
+Kanyashala Branch
+No. 1, Goya Bazar
+Primary School,
+Nava Borbhata
+Primary School,
+Nava Betbhata
+Bharuch
+Primary School, Nava
+Borbhata.
+Rahiad School,
+Z. P. School, Nagapur,
+Ahmednagar
+Z.P School, Vilad,
+Ahmednagar
+Z. P Primary School
+Navnagapur
+Public School, Kharod
+Primary School,
+Bhadkodra
+EN Jinwala High
+School
+2024
+0.25
+March 31,
+|ო
+73
+2024
+0.25
+March 31,
+72
+2024
+0.25
+March 12,
+0.28
+March 12,
+64
+2024
+58
+Govt. Primary School,
+Bhadi
+2024
+0.25
+January 11,
+57
+2024
+0.25
+January 11,
+56
+56
+2024
+0.25
+January 11,
+55
+55
+2024
+0.25
+January 11,
+54
+54
+2024
+0.25
+January 11,
+53
+January 11,
+414111
+0.25
+2024
+0.25
+March 12,
+63
+63
+64
+2024
+0.25
+March 12,
+62
+2024
+0.25
+January 11,
+61
+「ཙ
+2024
+0.25
+January 11,
+60
+Girls Primary School,
+Kosambdi
+2024
+0.25
+January 11,
+59
+59
+60
+High School, Bharan
+Govt. Primary School,
+Pimpalgaon Ujjini
+Govt. Primary School,
+Pimpalgaon Ujjini, Ahmednagar
+- 422209
+Govt. Primary School, Mota
+Chadva, Halol - 389360
+Govt. Primary School, Pavagadh
+Machi, Halol - 389360
+Govt. Primary School, Madar,
+393001
+0.25
+March 31,
+74
+Address of entity
+Name of entity
+Pincode
+Address of location
+of assets
+Short Particulars of
+the property/asset
+CSR
+Registration
+No., if
+applicable
+registered owner
+Amount
+of CSR
+spent
+(in
+Million)
+2024
+asset¹
+of the
+No.
+creation or
+acquisition
+SI.
+Details of the entity or public authority or beneficiary of the
+Date of
+57
+Board's Report
+Statutory Reports Financial Statements
+Corporate Overview
+9.
+capital
+Primary School, Golibar,
+Ankleshwar - 393001
+|མྱ
+75
+81
+2024
+0.15
+March 31,
+80
+Govt. Primary
+School, Abhetva
+2024
+0.69
+March 31,
+79
+30, 2023
+0.77
+November
+78
+2024
+0.25
+March 31,
+77
+2024
+0.25
+March 31,
+76
+2024
+0.25
+March 31,
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+393001
+393002
+393001
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+389360
+Govt. Primary School, Mota
+Chadva, Halol
+Interactive Board
+and UPS (1 No.)
+422209
+414111
+414111
+Govt. Primary School,
+Pimpalgaon Ujjini,
+Ahmednagar
+Govt. Primary School,
+Nimblak, Ahmednagar
+Govt. Primary School,
+Kharckajune, Ahmednagar
+Govt. Primary School, Ghata, 389370
+Halol
+389350
+389370
+Govt. Primary School,
+Rameshra, Halol
+Govt. Primary School,
+Fatehpuri, Halol
+Govt. Primary School,
+Primary School - Bolhegaon,
+Ahmednagar
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Rahiad School, Bharuch -
+392130
+Primary School, Nava Borbhata,
+Bharuch 393002
+Kanyashala Branch No. 1, Goya
+Bazar, Ankleshwar - 393001
+Primary School, Nava Borbhata,
+Ankleshwar - 393002
+Primary School, Nava Betbhata,
+Ankleshwar - 393001
+Z. P. School, Islak, Ahmednagar
+-414111
+Z. P. School, Nagapur,
+Ahmednagar - 414111
+Z. P. School, Vilad, Ahmednagar
+414111
+414001
+High School, Bharan,
+Ankleshwar - 394125
+Girls Primary School, Kosambdi,
+Ankleshwar - 393001
+High School, Nava Diva,
+Ankleshwar - 393001
+Public School Ankleshwar,
+Ankleshwar - 393001
+Primary School, Bhadkodra,
+Bharuch 392155
+EN Jinwala High School,
+Ankleshwar - 392210
+Public School, Kharod,
+Ankleshwar - 394115
+Z. P. Primary School
+Navnagapur Ahmednagar -
+Govt. Primary School, Bhadi,
+Ankleshwar - 394115
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Halol 389350
+Govt. Primary School, Nava
+Betbhata, Ankleshwar -
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board and
+UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+Interactive Board
+and UPS (1 No.)
+389360
+393002
+Primary School, Nava
+Borbhata, Bharuch
+Kanyashala Branch No. 1,
+Goya Bazar, Ankleshwar
+Primary School, Nava
+Borbhata, Ankleshwar
+Primary School, Nava
+Betbhata, Ankleshwar
+392130
+414111
+414111
+414111
+414001
+394115
+392210
+392155
+393001
+393001
+393001
+394125
+Rahiad School, Bharuch
+Z. P. School, Islak,
+Ahmednagar
+24
+Z.P School, Vilad,
+Ahmednagar
+Z. P. Primary School
+Navnagapur Ahmednagar
+EN Jinwala High School,
+Ankleshwar
+Public School, Kharod,
+Ankleshwar
+Girls Primary School,
+Kosambdi, Ankleshwar
+High School, Nava Diva,
+Ankleshwar
+Public School Ankleshwar,
+Ankleshwar
+Primary School, Bhadkodra,
+Bharuch
+High School, Bharan,
+Ankleshwar
+Govt. Primary School, Bhadi, 394115
+Ankleshwar
+393001
+389350
+Govt. Primary School,
+Pavagadh Machi, Halol
+Govt. Primary School,
+Madar, Halol
+Govt. Primary School, Nava
+Betbhata, Ankleshwar
+0.25
+Z. P. School, Nagapur,
+Ahmednagar
+52
+Dist. Ahmednagar - 414002
+Grampanchyat
+Talvadi
+Sun Pharma
+Community
+Healthcare Society
+Sun Pharma
+Community
+Healthcare Society
+Z. P. Primary School
+Bhistbag
+Govt. Primary School,
+Nava Dhinkva
+Anganwadi No. 12,
+Islak
+Govt. Primary School,
+Abhetva
+Govt. Primary School,
+Abhetva
+Anganwadi No. 07 At.
+Post-Navnagapur
+Anganwadi no.
+523, At. Post-
+Kharekarjune
+Anganwadi No. 178,
+At. Post-Navnagapur
+Anganwadi No. 194,
+At. Post- Vilad
+Anganwadi No. 179,
+At. Post-Navnagapur
+Anganwadi No. 176, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar - 414002
+Anganwadi No. 171, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar - 414002
+Anganwadi No. 173, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar - 414002
+Anganwadi No. 26 At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar - 414002
+Anganwadi No. 139, Nagapur,
+Tal. Dist. Ahmednagar - 414111
+Anganwadi No. 140, Nagapur,
+Tal. Dist. Ahmednagar - 414111
+0.92
+42
+CSR00003635
+2.31
+February
+29, 2024
+41
+2.13 CSR00003635
+February 7,
+2024
+40
+0.86
+March 15,
+2024
+39
+March 26,
+2024
+Anganwadi No. 513,
+Kharekarjune, Tal. Dist.
+Ahmednagar - 414111
+Anganwadi No. 179, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar - 414002
+Anganwadi no. 194,
+At. Post-Vilad Tal. Dist.
+Ahmednagar - 414111
+Anganwadi no. 523, At.
+Post-Kharekarjune, Tal.Dist.
+Ahmednagar - 414111
+Anganwadi no. 178, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar - 414002
+Anganwadi no. 24, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar - 414002
+Anganwadi no. 07 At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar - 414002
+Anganwadi no. 12, Islak, Tal.
+Dist. Ahmednagar - 414111
+Govt. Primary School, Abhetva,
+Halol, Panchmahal - 389350
+Govt. Primary School, Abhetva,
+Halol, Panchmahal - 389350
+Govt. Primary School, Nava
+Dhinkva, Halol, Panchmahal -
+389360
+Talvadi Village, Tal-Halol, Dist-
+Panchmahal - 389360
+Ambulance Van
+(1 No.)
+Ambulance Van
+(1 No.)
+Sanitation block
+(2 Nos.)
+Smart E-learning
+Unit (1 No.)
+Wall Mount
+Cupboard (1 No.)
+Wall Mount
+Cupboard (1 No.)
+Wall Mount
+Cupboard (1 No.)
+Unit (1 No.)
+Smart E-learning
+Unit (1 No.)
+Smart E-learning
+Smart E-learning
+Unit (1 No.)
+Smart E-learning
+Unit (1 No.)
+Smart E-learning
+Unit
+(1 No.)
+Smart E-learning
+Unit (1 No.)
+Unit (1 No.)
+Smart E-learning
+Unit (1 No.)
+Smart E-learning
+Unit (1 No.)
+Smart E-learning
+Smart E-learning
+Unit (1 No.)
+Unit (1 No.)
+Smart E-learning
+Unit (1 No.)
+Smart E-learning
+Smart E-learning
+Unit (1 No.)
+RCC Water Tank
+(1 No.)
+RCC Water Tank
+(1 No.)
+Sun Pharma Community
+Healthcare Society, Village
+Ganguwala, Tehsil Paonta Sahib
+- Distt Sirmaur - 173025
+Sun Pharma Community
+Healthcare Society, K-5, 6, 7
+& 10, Ghirongi Industrial Area,
+Malanpur Distt Bhind - Gwalior
+- 474010
+414003
+Z. P. Primary School Bhistbag,
+Tal. & Dist Ahmednagar -
+0.22
+March 15,
+2024
+38
+2024
+2024
+0.13
+March 30,
+29
+2024
+0.13
+March 30,
+28
+2024
+0.13
+March 30,
+27
+2024
+0.13
+March 30,
+26
+2024
+0.13
+March 30,
+25
+25
+Anganwadi No.173,
+At. Post-Navnagapur
+2024
+0.13
+March 12,
+2024
+30
+Water ATM (1 No.)
+March 30,
+2024
+31
+0.26
+March 10,
+37
+0.10
+March 5,
+2024
+36
+2024
+0.13
+March 30,
+35
+35
+36
+2024
+0.13
+March 30,
+34
+Anganwadi No. 24,
+At. Post-Navnagapur
+March 30,
+2024
+33
+0.13
+March 30,
+2024
+32
+2024
+0.13
+March 30,
+0.13
+Z P School Wadgaon Gupta, 414002
+Tal. Dist. Ahmednagar
+0.13
+414002
+January 11,
+46
+Govt. Primary School,
+Rameshra
+Govt. Primary School,
+Fatehpuri
+Govt. Primary School,
+Primary School -
+Shedni
+Govt. Primary School,
+Primary School -
+Bolhegaon
+414111
+414601
+394115
+394115
+Govt. Primary School,
+Sanjali, Ankleshwar
+Govt. Primary School,
+Kharod, Ankleshwar
+Govt. Primary School,
+Primary School - Shedni,
+Ahmednagar
+2024
+0.25
+0.25
+45
+45
+Govt. Primary School,
+Kharod,
+2024
+0.50
+March 12,
+44
+Govt. Primary School,
+Sanjali,
+2024
+0.25
+March 12,
+March 12,
+2024
+47
+January 11,
+High School, Nava
+Diva, Ankleshwar
+Public School
+Ankleshwar
+Anganwadi No. 176, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar
+Anganwadi No. 171, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar
+Govt. Primary School,
+Nava Betbhata
+Mota Chadva
+Govt. Primary School,
+Pavagadh Machi
+Govt. Primary School,
+Madar
+Govt. Primary School,
+Govt. Primary School,
+Kharckajune
+2024
+0.25
+January 11,
+51
+Govt. Primary School,
+Nimblak
+2024
+0.25
+January 11,
+50
+Govt. Primary School,
+Ghata
+2024
+0.25
+January 11,
+49
+0.25
+January 11,
+48
+2024
+0.25
+43
+Address of entity
+2024
+Pincode
+389350
+389350
+Govt. Primary School,
+Abhetva, Halol, Panchmahal
+Dist. Ahmednagar
+Anganwadi No. 12, Islak, Tal. 414111
+414002
+414002
+414002
+414111
+414111
+414002
+414111
+Ahmednagar
+Ahmednagar
+Anganwadi No. 178, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar
+Anganwadi No. 24, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar
+Anganwadi No. 523, At.
+Post-Kharekarjune, Tal. Dist.
+Anganwadi No. 513,
+Kharekarjune, Tal.Dist.
+Ahmednagar
+Anganwadi No. 179, At.
+Post-Navnagapur, Tal.Dist.
+Ahmednagar, Maharashtra
+Anganwadi No. 194,
+At. Post-Vilad Tal. Dist.
+Ahmednagar
+Tal. Dist. Ahmednagar
+Anganwadi No. 140, Nagapur, 414111
+Anganwadi No. 139, Nagapur, 414111
+Tal. Dist. Ahmednagar
+414002
+414002
+Ahmednagar
+Name of entity
+Anganwadi No.173, At.
+Post-Navnagapur, Tal. Dist.
+Ahmednagar
+Anganwadi No. 26 At.
+Post-Navnagapur, Tal. Dist.
+414002
+Govt. Primary School,
+Abhetva, Halol, Panchmahal
+Govt. Primary School, Nava
+Dhinkva, Halol, Panchmahal
+389360
+Anganwadi No. 07 At.
+Post-Navnagapur, Tal. Dist.
+Sun Pharma Community
+Healthcare Society, Village
+Ganguwala, Tehsil Paonta
+Sahib Distt Sirmaur
+Sun Pharma Community
+Healthcare Society, K-5, 6,
+7 & 10, Ghirongi Industrial
+Area, Malanpur Distt Bhind,
+Gwalior
+Talvadi Village, Tal-Halol,
+Dist, Panchmahal
+Short Particulars of
+the property/asset
+CSR
+Registration
+No., if
+applicable
+Z. P. Primary School
+Bhistbag, Tal. & Dist,
+Ahmednagar
+asset¹
+spent
+(in
+Million)
+capital
+of the
+No.
+registered owner
+creation or
+acquisition
+SI.
+Amount
+Details of the entity or public authority or beneficiary of the
+of CSR
+Address of location
+of assets
+Date of
+389360
+Patient First. Always.
+474010
+173025
+56
+414003
+Statutory Reports
+Board's Report
+Financial Statements
+Corporate Overview
+Name of the Director
+Other
+2024
+Committee
+Other Indian Equity Listed
+Committee
+entities in which they hold
+Directorship
+Dr. Pawan Goenka
+Directorships¹ Memberships 2&3 Chairmanships²
+1
+1
+Mr. Dilip Shanghvi
+No. of other Directorships and Committee
+Memberships / Chairmanships as of March 31,
+Bosch Limited
+0
+Category of Directorship
+Other Directorships
+Behavioral Traits
+Yes
+Yes
+Yes
+Yes
+1
+Yes
+Yes
+Yes
+C.
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+0
+0
+Mr. Gautam Doshi
+Non-Executive and Independent
+Non-Executive and Independent
+Non-Executive and Independent
+Non-Executive and Independent
+Mr. Rolf Hoffmann
+0
+0
+Nil
+Mr. Sudhir Valia
+Sonata Software Limited
+Deepak Nitrite Limited
+Ashok Leyland Limited
+Sudarshan Chemical
+Industries Limited
+Hawkins Cookers Limited
+Epigral Limited
+4
+1
+Sun Pharma Advanced
+Research Company Limited
+Non-Executive and Independent
+Non-Executive and Independent
+Not Applicable
+Non-Executive and Non-Independent
+Mr. Sailesh Desai
+Yes
+3
+0
+4
+0
+Apollo Hospitals Enterprise Non-Executive and Independent
+Limited
+4
+4
+5
+2
+Ms. Rama
+Bijapurkar
+6
+6
+Financial Services Limited
+2
+Non-Executive and Independent
+Non-Executive and Non-Independent
+Chairman
+VST Industries Limited
+Mahindra and Mahindra
+Non-Executive and Independent
+Non-Executive and Independent
+Non-Executive and Independent
+Non-Executive and Independent
+Non-Executive and Independent
+Non-Executive and Independent
+Mr. Sanjay Asher
+8
+9
+Sun Pharma Advanced
+Research Company Limited
+Suzlon Energy Limited
+Piramal Enterprises Limited
+Gokaldas Exports Limited
+Cummins India Limited
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Legal
+No
+No
+Yes
+No
+Yes
+Yes
+Yes
+No
+No
+Governance
+Yes
+Yes
+Yes
+Yes
+Dilip
+0
+Shanghvi
+Gautam
+Doshi
+Rama
+Sanjay
+Rolf
+Yes
+Sudhir
+Bijapurkar
+Asher
+Hoffmann
+Valia
+Desai
+Aalok
+Shanghvi
+Finance & Accounts
+Sailesh
+Skills
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+General Management
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+Risk Management
+Yes
+Yes
+Yes
+Yes
+No
+Industry Knowledge
+No
+Yes
+Yes
+No
+Yes
+Yes
+Yes
+Yes
+Yes
+(Pharma Industry)
+No
+Nil
+Yes
+0
+6
+6
+Yes
+Mr. Sailesh Desai
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+6
+6
+Mr. Aalok Shanghvi²
+N.A.
+Yes
+Yes
+Yes
+Yes
+Yes
+6
+5
+Yes
+Mr. Rolf Hoffmann¹
+N.A.
+Yes
+Yes
+Yes
+Yes
+Yes
+5
+5
+Yes
+Mr. Sudhir Valia
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+8,000
+Nil
+Nil
+Mr. Rolf Hoffmann
+Nil
+Mr. Sudhir Valia
+14,345,019
+5.
+Committees of the Board
+A.
+Audit Committee
+Composition of the Audit Committee and the terms of reference are in compliance with the requirements under
+Section 177 of the Companies Act, 2013 ("Act") and Regulation 18 of the Listing Regulations.
+The terms of reference of the Audit Committee, inter alia, include, overseeing Company's financial reporting process,
+reviewing the annual financial statements and auditor's report thereon; reviewing and monitoring the auditor's
+independence and performance and effectiveness of audit process; recommending appointment and remuneration
+of the auditors of the company; reviewing the adequacy of internal audit function, discussing with internal auditors
+of any significant findings and follow up there on; evaluating internal financial controls and risk management systems;
+reviewing transactions with related parties, etc.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Pawan
+Goenka
+Nil
+Mr. Sanjay Asher
+Ms. Rama Bijapurkar
+Mr. Gautam Doshi
+5
+5
+Yes
+Notes:
+e.
+1. Appointed as an Independent Director of the Company effective from June 15, 2023.
+2. Appointed as the Whole-time Director of the Company effective from June 1, 2023.
+Yes
+Familiarisation Programme
+Scan the QR code to view the details
+of familiarisation programme.
+f.
+Equity Shares held by Non-Executive Directors as on March 31, 2024:
+Name of the Director
+No. of Equity Shares
+Dr. Pawan Goenka
+Details of the familiarisation programme for the Independent Directors are available on the website of the Company at
+https://sunpharma.com/policies.
+Yes
+Yes
+Yes
+November
+January
+January
+March 29,
+No. of Meetings
+entitled to
+attend
+No. of
+Meetings
+attended
+Whether
+attended
+31st AGM?
+2023
+1, 2023 17, 2024
+31, 2024
+2024
+Dr. Pawan Goenka
+Yes
+Yes
+August 3,
+May 26,
+2023
+Name of the Director
+Attendance
+0
+0
+Nil
+Not Applicable
+Not Applicable
+Notes:
+1. Does not include Directorships in Private Limited, Foreign and Section 8 Companies.
+2. Includes only Memberships and Chairmanships of Audit and Stakeholders' Relationship Committees.
+Yes
+3. Also includes Chairmanships.
+68
+d.
+Meetings and attendance
+Corporate Overview
+Statutory Reports Financial Statements
+Corporate Governance Report
+Six Board meetings were held during the financial year ended March 31, 2024 on May 26, 2023; August 3, 2023;
+November 1, 2023; January 17, 2024; January 31, 2024 and March 29, 2024.
+The 31st Annual General Meeting ("AGM") was held on August 28, 2023.
+Details of attendance of the Board members are as follows:
+Patient First. Always.
+Yes
+Yes
+Yes
+6
+6
+Yes
+Ms. Rama Bijapurkar
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+6
+6
+Yes
+Mr. Sanjay Asher
+Yes
+No
+Yes
+Mr. Aalok Shanghvi
+Yes
+Yes
+6
+6
+Yes
+Mr. Dilip Shanghvi
+Yes
+Yes
+Yes
+Yes
+Yes
+Yes
+6
+6
+Yes
+Mr. Gautam Doshi
+Yes
+Yes
+Yes
+Expertise
+62
+67
+Elimination of Malnutrition through Action-Research
+on Moderately and Acute Malnourished Children:
+Microbiota-directed food supplement (MDCF)
+represents a pioneering nutritional intervention,
+meticulously crafted through extensive research
+endeavors focused on paediatric populations.
+Demonstrating promising results, this specialised
+supplement has shown potential in rectifying gut
+microbial imbalances, thereby correlating with enhanced
+growth and development among children aged 12-
+18 months. The primary objective of this project is
+to evaluate the acceptability, generalisability, and
+efficacy of MDCF among Indian children suffering from
+moderate acute malnutrition (MAM), aged 6-18 months.
+This collaborative project with The Christian Medical
+College Vellore Association is a significant step towards
+developing a solution that addresses acute malnutrition
+and improving the health outcomes of vulnerable
+children. The company has contributed 120.00 million
+during the financial year 2023-24.
+Mobile Healthcare Unit:
+The Mobile Healthcare Unit aims to extend vital
+healthcare services to marginalised communities
+residing in remote and underserved areas, where access
+to quality care remains a challenge. Adopting a holistic
+approach, the initiative not only emphasises Health
+Promotion and Preventive Healthcare Education but
+also provides Curative Treatment to those in dire need.
+With a steadfast commitment to improving healthcare
+accessibility, the Mobile Healthcare Unit has made
+significant strides in reaching the most vulnerable
+4.
+5.
+6.
+populations. To date, it has delivered Curative Treatment
+to 153,462 patients and imparted Preventive &
+Promotive Healthcare Education to 27,930 individuals.
+During the financial year 2023-24, the company
+reaffirmed its dedication to this noble cause by
+contributing * 32.83 million. The project has been
+implemented by the Sun Pharma Community
+Healthcare Society.
+Healthcare Infrastructure Support & Awareness:
+Sun Pharma is committed to improve Healthcare
+Infrastructure and Awareness. The company has
+undertaken a range of projects under this thematic area
+such as organising school eye check-ups and distributing
+spectacles to students, helping to identify visual
+impairments that can affect their academic performance.
+Upgrading healthcare infrastructure in rural areas,
+setting up dental implant center, organising blood
+donation camps and providing educational resources and
+nutritional ration kits to TB patients and their families.
+The company has contributed 8.12 million during the
+financial year 2023-24 with the benefit being extended
+to communities at large.
+Anganwadi Infrastructural Development:
+Sun Pharma is committed to enhancing Anganwadi
+Infrastructure to create nurturing environments
+that cater to the educational, health, and nutritional
+needs of rural children. Through our support of the
+Model Anganwadi Development Program, we aim to
+address infrastructural gaps at Anganwadi centers by
+undertaking various initiatives. These include repairing
+and painting buildings, creating play areas, constructing
+boundary walls, waterproofing buildings, repairing
+toilets, and establishing water facilities. We also
+focus on improving kitchen facilities by constructing
+almirahs and working platforms, providing play material,
+and utensils. Our goal is to foster a child-friendly
+environment conducive to learning and development.
+During the financial year 2023-24, Sun Pharma contributed
+11.60 million towards this initiative. The project is being
+implemented at our Baroda, Panoli, Ankleshwar, and Halol
+plant locations, benefiting approximately 2394 children.
+Through these efforts, we seek to make a meaningful
+impact on the lives of children in rural areas, ensuring they
+have access to quality education, healthcare, and nutrition
+within a supportive environment.
+School Infrastructure Development Project:
+Sun Pharma is actively involved in several initiatives
+as part of its School Infrastructure Development
+Projects. These encompass a range of activities aimed
+at bolstering the infrastructure of rural schools and
+enhancing learning outcomes. These initiatives include
+the construction of classrooms, provision of drinking
+water and sanitation facilities, establishment of mid-
+day meal sheds, tree plantation, rainwater harvesting,
+installation of safety grills and boundary walls, and
+Patient First. Always.
+7.
+8.
+9.
+provision of sports equipment, chairs, and benches.
+The overarching goal of these efforts is to elevate
+the quality of infrastructure in rural schools, thereby
+creating a conducive environment for learning.
+The implementation of this groundbreaking project
+falls under the auspices of the Shantilal Shanghvi
+Foundation. The facility spans an impressive 2.2 lakh
+square feet, with 14 floors already constructed. One of
+its prominent features is the Shantilal Shanghvi Cancer
+Sanatorium, which will accommodate a 100-bed facility
+dedicated to providing affordable healthcare for cancer
+patients. Equipped with chemotherapy, radiology, and
+short-stay facilities, this 19-floor structure spans over
+3.0 lakh square feet and is currently under construction.
+In the financial year 2023-24, Sun Pharma invested a
+substantial sum of 200.00 million towards this project.
+Spearheaded by the Shantilal Shanghvi Foundation, the
+cancer care facility is located in Wadala, Mumbai.
+During the financial year 2023-24, Sun Pharma made
+a significant contribution of 44.83 million towards
+these projects. This contribution has directly benefited
+approximately 17207 students across various locations,
+including Halol, Panoli, Vadodara, Maduranthakam,
+Malanpur, Toansa, Silvassa, and Ahmednagar.
+Sun Pharma has embarked on a noble endeavor
+to establish a cutting-edge cancer care facility,
+underscoring its commitment to improving healthcare
+outcomes. The primary aim of this initiative is to offer
+comprehensive treatment and support services to cancer
+patients from diverse socio-economic backgrounds.
+Designed to provide a clean, secure, and visually
+appealing environment, the facility caters to patients
+requiring chemotherapy and radiation treatments.
+2.
+Availability of Sun Pharma's high-quality, specialised research equipment in rural area
+b. Leadership vision to develop a holistic research ecosystem with multi-stakeholders like KVK, Bhimthadi Foundation,
+students, faculty, startups, SHGs, farmers, and industries.
+C.
+d.
+e.
+f.
+g.
+Easy and complete accessibility to the laboratory with hands-on training and usage to the stakeholders
+Interdisciplinary environment for applied research
+A bottom-up approach to identify problems and a strong commitment to innovate and address community concerns
+Experts and services attached to the labs to guide the communities with evidence-based sustainable solutions
+Developing a scientific temperament among rural communities and a social temperament among scientific communities
+To strengthen the project and make it more impactful, specific recommendations have been put forth in the areas of higher
+research engagement, academic writing and publishing, material and human resources, community impact, environmental
+research and advocacy, and quality accreditation.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Statutory Reports Financial Statements
+Board's Report
+Corporate Social Responsibility Activities
+61
+1. Support towards setting-up of Cancer Sanatorium
+Institute:
+3.
+Promotion of Scientific Medical & Pharma Research
+Outcomes for Public Health Improvement:
+Sun Pharma has undertaken a project aimed at
+promoting scientific medical and pharmaceutical
+research outcomes for public health improvement.
+The project involves sharing medical and pharmaceutical
+research with the public after conducting scientific
+research on ways to improve public health. This
+initiative has helped young scientists and scholars
+in the medical and pharmaceutical fields to work
+towards improving public health.
+The company has contributed 3.23 million towards this
+project during the financial year 2023-24 with the project
+being implemented by Sun Pharma Science Foundation.
+Sun Pharma is committed to continuously improve
+energy performance and conserve energy in its
+various operations, dedicated team is continuously
+working to ensure efficient use of energy. Equipment
+and plant wise energy consumption is monitored and
+benchmarking is done at frequent interval, energy
+gap assessment is carried out, energy conservation
+projects are identified and implemented. The energy
+conservation projects have resulted into reduction
+in carbon emission and support organisations
+decarbonisation journey.
+We have also implemented Energy management system
+ISO: 50001:2018 at Halol, Mohali, Dadra & Dewas sites
+to further ensure structured and systematic approach
+towards energy conservation.
+2.
+1.
+Steps taken or impact on Conservation of Energy
+Various initiates taken for energy conservation are:
+• Utilisation of heat pump for hot water generator and
+reducing steam consumption.
+3.
+• Demand side compressed air management to reduce
+power consumption at air compressors.
+Annexure-E
+Steps taken by the Company for utilising alternate
+sources of energy
+We are consistently taking various initiatives to
+reduce carbon emission and utilising alternate source
+of energy.
+• Captive Hybrid (Wind + Solar) powerplant is installed
+to meet partial power requirement for Gujarat
+manufacturing facilities sites.
+• Captive solar power plant is utilised to meet partial
+power requirement of Dewas site.
+• Company is also using Captive Wind mills to meet its
+partial power requirement at MKM sites.
+• Captive solar rooftop are being utilised at Halol,
+Gurgaon, Silvassa, Dadra, and Vadodara sites.
+• Boiler fuel at most of locations are shifted from
+conventional fuel like furnace oil/high speed
+diesel a with renewable biomass briquettes fuel for
+Steam generation.
+(A) Conservation of Energy
+Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and
+Outgo required under the Companies (Accounts) Rules, 2014
+63
+Statutory Reports Financial Statements
+Board's Report
+Setting-up of Digital Classroom Project:
+Sun Pharma has implemented a transformative initiative by
+establishing digital classrooms in government schools. This
+forward-thinking endeavor aims to enhance the quality of
+education by leveraging digital technology. Recognising the
+importance of integrating information and communication
+technology (ICT) into the education system, the
+development includes LED Smart screens, computer
+PCs, software, keyboards, mice, wooden cabinets,
+and electrification works. Additionally, comprehensive
+teacher training programs have been conducted to
+ensure effective utilisation of these digital tools.
+During the financial year 2023-24, Sun Pharma invested
+*7.35 million towards this initiative, which has directly
+benefited approximately 10307 students across different
+locations. By embracing digital education, Sun Pharma
+strives to provide students with innovative learning
+experiences and equip them with the skills needed to
+thrive in the digital age.
+Installation of Solar Street Lights:
+Sustainable development holds a central position in Sun
+Pharma's ethos, with a dedicated focus on advocating
+for renewable energy adoption. In pursuit of this
+commitment and to address the need for community
+lighting in rural, underserved regions, Sun Pharma
+installs solar street lights in nearby villages surrounding
+its operational areas. The primary objective of this
+endeavor is twofold: to provide essential community
+lighting in areas lacking access to electricity and to
+promote the utilisation of renewable energy sources.
+By harnessing solar power, Sun Pharma not only
+diminishes its carbon footprint but also contributes
+significantly to sustainable development efforts.
+During the financial year 2023-24, the company
+invested 3.97 million towards this initiative. Through
+such initiatives, Sun Pharma endeavors to foster
+Corporate Overview
+Statutory Reports Financial Statements
+Board's Report
+positive change, improve livelihoods, and create a
+brighter, more sustainable future for all.
+a.
+10. Rural Infrastructure Development Projects:
+During the financial year 2023-24, Sun Pharma
+dedicated 6.39 million towards these projects,
+demonstrating its commitment to improving the lives
+of rural residents. The benefits of these initiatives
+extend far and wide, reaching communities at large
+and fostering positive socio-economic development.
+11. Tree Plantation:
+Sun Pharma actively participates in tree plantation
+initiatives around its operational sites. In addition to
+planting saplings, the company takes comprehensive
+measures to ensure the survival and growth of these
+trees. This includes erecting tree guards, fencing the
+area, providing adequate water supply, and offering
+nurturing care until the saplings mature into sturdy trees.
+During the financial year 2023-24, Sun Pharma invested
+3.32 million towards this noble cause. These efforts
+are primarily focused on the surrounding areas of
+the Vadodara and Panoli plants, where the company
+seeks to enhance green cover and contribute to the
+preservation of the environment.
+12. Community Drinking Water:
+Sun Pharma recognises the critical need for access to
+safe and potable drinking water in rural villages, and
+has undertaken several initiatives to address this issue.
+Through various projects, the company has focused on
+improving access to safe drinking water in rural areas.
+This includes the construction of storage tanks, water
+supply systems, pipelines, and the maintenance of tube
+wells to facilitate piped water to individual households.
+Additionally, initiatives such as Water ATMs have been
+implemented to ensure access to clean water sources.
+During the financial year 2023-24, Sun Pharma invested
+* 4.91 million towards these endeavors. The benefits
+of these projects extend to communities at large,
+aiming to alleviate the challenges associated with
+water scarcity and improve overall quality of life.
+13. Disaster Relief Projects
+As part of its disaster relief initiative, Sun Pharma has
+provided crucial assistance to various emergencies
+by offering essential aid such as ration kits, first aid
+kits, and other necessities. The company distributed
+1,000 Ration kits to Narmada flood affected families in
+Ankleshwar Block.
+During the financial year 2023-24, the company
+contributed 1.06 million towards these relief
+efforts. This support aims to alleviate the immediate
+needs of affected communities during times of crisis
+and demonstrates Sun Pharma's commitment to
+humanitarian assistance and community welfare.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Corporate Overview
+Sun Pharma engages in enhancing crucial infrastructure
+facilities. This comprehensive project seeks to cater
+to the diverse needs of communities through a range
+of impactful activities, including the installation and
+renovation of community centers, construction of
+community kitchen sheds, and implementation of
+solar water pumps.
+Capital investment on energy conservation
+equipments
+Certain aspects are working effectively in this project, making it more impactful. These need to be highlighted and
+continued by the implementing partner:
+ADT has tie-ups with 04 Pharma, Chemical and Herbal industries
+• Trainings organised for faculty and students of other
+educational institutions
+"The cost of dry fodder is high and the availability is scarce. Further, here the sugarcane trash (bagasse) was burnt that causes
+high carbon emissions. These two problems were discussed, and we (group of students) were selected to work on this problem.
+We arrived at the conclusion that dry fodder can be replaced by bagasse. But, bagasse contains lignin that decreases the
+lactation capacity of the cows, which needed to be reduced. We worked on collecting samples to reduce lignin from bagasse
+using biological techniques to make it cost-effective. We started our experiment and got the best results. We have done toxin
+and nutritional analysis of the product developed at the lab and are getting favorable results." - Student, M.Sc. Microbiology
+Indicators
+Availability &
+Accessibility
+(Social &
+Administrative
+Accessibility)
+Quantitative Findings
+High availability and access to labs by:
+• 71% women students
+• 49% students from marginalised backgrounds
+• 68% faculty from marginalised backgrounds
+Qualitative Findings
+.
+Encouraging research ecosystem
+• Multi-stakeholder design
+• High community access & reach through cost & time-effective
+facilities locally
+• Exposure of students & faculty to the sophisticated equipment
+"All the facilities are very good, reports are excellent. There is complete accuracy in the testing facilities. Earlier, when this
+facility was not available locally, we would go to another city for testing. We had to go very far, 50 km away. And we had
+to incur very high fees - a test for Rs. 200 here cost us Rs. 500-600 there. We have got milk tested when needed. When
+our cows get mastitis then to ascertain exactly which type of bacterial infection they have, we get milk samples tested at
+ADT. Based on the type of infection, we also understand the type of treatment we need to give to the cow. Sometimes
+unnecessarily a higher antibiotic is given when the infection is unknown. From the report if we get to know that it is E.coli
+then we give the correct antibiotic accordingly." - Dairy Farmers, Yesgar Basti, Baramati
+Inter-disciplinary & innovative research experiments
+The study also looked at how the outcomes of the project were achieved against the planned objectives and project
+deliverables presented as follows:
+• Involvement of students in applied research to
+address real, field issues
+Qualitative Findings
+Name of the Director
+Corporate Overview
+Statutory Reports Financial Statements
+Board's Report
+59
+"Based on my soil testing, KVK advised me to water the crops only once a month as the water here is polluted by milk and
+sugar industries. They also informed us that we must use ordinary grade fertilisers; we do not need superior grade. They
+explained polluted water and urea are spoiling the soil. Urea is most commonly used by the farmers, so we stopped using it.
+This way it will slow down the deterioration of soil. Now, my crop produce has doubled in just 4-5 years. In fact, we reduced
+the land area, yet the produce increased. For instance, if we were producing 1,000 tonnes of sugarcane in 20 acres of land,
+we are able to now do that in just 15 acres." - Farmer, Khandaj, Baramati
+Indicators
+Acceptability
+(Information
+Accessibility &
+Usage)
+Quantitative Findings
+Self-assessment of usage of research facility as per students & faculty:
+•
+Highly frequent usage (reported by 80% students, 63% faculty)
+•
+High usage/access to labs (reported by 97% students)
+•
+High usage of labs by faculty for student research projects
+(reported by 95% faculty)
+• High usage of labs by faculty for department research projects
+(84%) and independent research projects (79%)
+Hands-on training of students & faculty on using
+the equipment
+Objectives
+To provide facilities for
+clinical testing of human
+and veterinary medicine
+To provide pesticide
+testing facility for
+agriculture produce
+plant based medicine
+Outcomes & Impact
+Innovative research experiments undertaken and solutions provided to dairy/agri farmers through KVK
+19 patents on various herbal drug technology filed by startups
+•
+•
+•
+08 technologies have been commercialised
+• Incubated social startup has provided standardisation and credibility of food products through nutritional
+analysis for rural women entrepreneurs
+• 44 start-ups have been supported so far since its inception through the laboratory support related to
+agriculture, food-tech, socio-economic, health, and women
+• On-boarding of more than 48 world-class mentors to support startups
+• Around 10 startups secured funding from Government grants/ Incubator seed funds
+• 07 start-ups have been successfully graduated
+• 19 high-quality patents filed by incubated startups
+• More than 300 employments generated by incubated startups of this project
+• 300 research papers are published in refereed research journals including Scopus Index, Web of Science Index
+and UGC-CARE listed journals
+• 52 research papers are in the pipeline for publication
+• Tie-ups with national and international reputed corporate and academic partners and incubators around the
+globe
+To work as a bridge
+between academia and
+the corporate sector in the
+To collect, process and
+disseminate scientific data
+related to humans as well
+as animal health based on
+their geographic presence
+and studying their location
+based variance
+development for startups/
+entrepreneurs
+To provide consultancy
+for pilot scale medicine
+Outcomes & Impact
+•
+Highly accessible research facility made available to students, faculty, industries, researchers, and rural,
+marginalised communities of Baramati
+• 8,214 clinical testing done so far in animal disease diagnosis lab, nutrition lab, and LCMS/MS
+• Over 1,500 students have taken training and internships at the laboratory
+• More than 300 professors from other educational and research institutes have taken advantages of the
+advanced equipment in the research laboratory
+• Testing facilities started for food toxin, pharma drug, soil, animal diseases, and feed sample:
+Nutrition Lab - Crude Protein (CP), Acid Insoluble Ash (AIA), Crude fat/ Ether extract/Oil (EE), Crude fiber
+(CF), Dry matter (DM), Moisture Total Ash (TA)
+• Feed samples are tested for renowned MNCs like Altech Biotechnology, Corteva, Baramati Agro Pvt. Ltd,
+Vetoquinol Pvt. Ltd, Schreiber Dynamix Ltd, Bayer Corporation, Salauddin Poultries, A.P, Swaraj Serum Pvt. Ltd,
+Advantage Agri Pvt. Ltd.
+Animal Disease Diagnostic Lab - Blood Testing (Hemoglobin, TLC, TEC, Lymphocytes, Neutrophils (band
+cells), Eosinophil's, Monocytes, Basophiles, Platelets), Theileria Testing, Babesia Testing, Pregnancy Testing,
+Brucellosis Testing by ELIZA, Milk Testing (Mastitis), Foreign Body Testing, Bilirubin Testing
+Analytical Lab - Drug Analysis, Toxicity Analysis, Melamine, Aflatoxin [g1, g2, b1, b2, m1, m2] Testing,
+Pesticide Residue Analysis, Aflatoxin Analysis, Heavy Metals Analysis, Trace Minerals Analysis
+60
+Corporate Overview
+Statutory Reports Financial Statements
+Board's Report
+Objectives
+To develop formulation of
+medicines associated with
+human and animal health
+through plants
+To develop formulation
+To develop formulation
+of herbal medicine for
+human and veterinary use
+Patient First. Always.
+Capital investment of 1,235.4 million has been made
+on energy conservation equipments.
+of natural animal or plant
+based health care and
+hygiene products for
+instance use of goat milk
+in cosmetics products
+(B)
+Ms. Rama Bijapurkar
+(DIN: 00001835)
+3.
+Mr. Gautam Doshi
+(DIN: 00004612)
+4.
+Mr. Sanjay Asher
+(DIN: 00008221)
+5.
+Mr. Rolf Hoffmann¹
+(DIN: 10200311)
+Promoter/Promoter Group Executive
+6.
+Mr. Dilip Shanghvi - Managing Director²
+Director
+(DIN: 00005588)
+7.
+2.
+Mr. Aalok Shanghvi³ - Whole-time Director
+Dr. Pawan Goenka - Lead Independent Director
+(DIN: 00254502)
+Inter-se Relationship between
+Directors
+Code of Conduct
+The Board of Directors has laid down a Global
+Code of Conduct for all Board members, the senior
+management of the Company and all employees
+including employees of its subsidiary companies. This
+Code serves as a guide for daily business interactions
+reflecting our standard for appropriate behavior and
+our corporate values, and is designed to prevent,
+detect, and address any allegation of misconduct and
+to provide guidance to personnel in recognising and
+dealing with important ethical and legal issues and to
+foster a culture of honesty and accountability within
+the organisation. The Global Code of Conduct of the
+Company is available on the website of the Company
+at https://sunpharma.com/policies.
+Scan the QR code to view
+the Global Code of Conduct
+All the directors and senior management affirm
+compliance with the Global Code of Conduct as
+approved and adopted by the Board of Directors and a
+declaration to this effect signed by the Chairman and
+Managing Director has been annexed as 'Annexure A'
+to this Report.
+Patient First. Always.
+66
+4.
+Board of Directors
+a.
+Board Composition
+Corporate Overview
+Statutory Reports Financial Statements
+Corporate Governance Report
+The Board of Directors of the Company as on March 31, 2024 comprises of nine Directors The composition and
+category of Directors is as follows:
+Category of Directors
+Independent Directors
+SI.
+No.
+Name of the Directors
+1.
+(DIN: 01951829)
+Promoter/Promoter Group Non-Executive
+and Non-Independent Director
+8.
+Risk Management
+General Management
+Skills
+Strategic Thinking / Planning Skills
+Problem Solving Skills
+Analytical Skills
+Decision Making Skills
+Leadership Skills
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Behavioural Traits
+Integrity
+Genuine Interest
+Interpersonal Skills / Communication
+Active Participation
+Corporate Overview
+Statutory Reports
+Financial Statements
+Corporate Governance Report
+• Replacement of existing chiller with energy
+efficient chillers.
+The expertise of the Board Members is as given below:
+Industry Knowledge
+Governance
+Legal
+Finance & Accounts
+Mr. Sudhir Valia
+(DIN: 00005561)
+Father of Mr. Aalok Shanghvi
+Brother-in-law of Mr. Sudhir Valia
+Son of Mr. Dilip Shanghvi
+Brother-in-law of
+Mr. Dilip Shanghvi
+Non-Promoter Executive Director
+9.
+Mr. Sailesh Desai - Whole-time Director
+(DIN: 00005443)
+The responsibility of upholding the principles of
+Corporate Governance does not solely lie with the
+Board or senior management. It is expected that every
+member of the organisation embraces and embodies
+the values of governance, regardless of their position.
+The Company is dedicated to fostering knowledge
+sharing and collaboration among its employees
+worldwide. An annual event, "Governance Week", was
+conducted in February 2024 wherein various initiatives
+for spreading awareness on the essential components
+of governance were undertaken throughout the
+week. The outcomes of Governance Week have
+been overwhelmingly positive, fostering a stronger
+commitment and unity in the Company's efforts to
+promote best corporate governance practices.
+1. Appointed as an Independent Director of the Company for a term of five years commencing from June 15, 2023 till June 14, 2028.
+2. Also appointed as Chairman of the Board effective from May 22, 2024.
+4. Retired and ceased to be the Whole-time Director of the Company effective from March 31, 2024 on completion of term of appointment.
+A certificate from a practicing company secretary confirming that none of the Directors on the Board of the Company
+have been debarred or disqualified from being appointed or continuing as directors of the Company by the Securities
+and Exchange Board of India ("SEBI”) / Ministry of Corporate Affairs ("MCA") or any such statutory authority, has been
+annexed as 'Annexure B' to this Report.
+The Independent Directors fulfill conditions specified in the SEBI (Listing Obligations and Disclosure Requirements)
+Regulations, 2015 ("Listing Regulations") and are independent of the management.
+A meeting of the Independent Directors was held on October 30, 2023.
+b.
+Board skill matrix
+In terms of requirement of Listing Regulations, the Board has identified the core skills / expertise / competencies of the
+Directors, as given below:
+Knowledge / Expertise in one or more of the following
+3. Appointed as the Whole-time Director of the Company for a term of five years commencing from June 1, 2023 till May 31, 2028.
+Promoting in-house governance
+Notes:
+Company's Philosophy on Corporate Governance
+Company's philosophy envisages reaching people
+touching lives globally by following the core values
+viz. Quality, Reliability, Consistency, Trust, Humility,
+Integrity, Passion and Innovation which are also a
+way of life at the Company. These values are the
+foundation of the Corporate Governance practices of
+the Company. The Company ensures to work by these
+principles in all its interactions with stakeholders,
+including shareholders, employees, customers,
+consumers, suppliers and statutory authorities.
+507.0
+15,980.1
+18,584.6
+16,487.1
+9.2%
+7.9%
+(B) Technology Absorption, Adaptation and Innovation
+1.
+Efforts in brief, made towards technology absorption,
+adaptation and innovation
+The Company continues to invest on R&D, both as
+revenue expenses as well as capital investments.
+This spending is directed at developing complex
+products, specialty products, generic products,
+and API technologies. Some of these products may
+require dedicated manufacturing blocks. Investments
+have been made in employing scientifically skilled
+and experienced manpower, adding technologically
+advanced and latest equipment, sponsored research
+and in accessing world class consultants to continuously
+upgrade the research understanding of the scientific
+Patient First. Always.
+64
+Corporate Overview
+Statutory Reports
+Board's Report
+Financial Statements
+team in the technologies and therapy areas of
+our interest.
+There has been thrust on the development of novel
+technologies like use of green reagents for chemical
+transformations in API synthesis, use of PAT tools in
+process development, and advanced crystallisation
+and powder processing techniques like ultrasonic
+crystallisation for achieving required particle size
+and physical characteristics for formulation, plug
+flow reactors, advanced flow reactors for continuous
+process and safety related studies using reaction
+calorimetry and other advanced process engineering
+tools. Product Life Cycle management has been
+undertaken for key products. Backward integration is a
+key strategic objective and many of our products enjoy
+the benefit of this backward integration.
+Process optimisation based on Quality by Design
+(QbD) concept and robustness by six sigma calculation
+have been implemented for wide range of products
+with the objective to reduce cost and increase in-
+process capability.
+436.7
+18,147.9
+Year ended
+March 31, 2024
+Year ended
+March 31, 2023
+(in Million)
+(A)
+3.
+Research and Development
+• Use of variable frequency drives to improve pumping
+and compressor energy performance.
+Expenditure on R&D
+• Use of energy efficient dryer to minimise
+power consumption.
+• Condensate recovery improved, resulting in Fuel and
+water reduction at various sites.
+• Hot water temperature reduced to reduce
+steam requirement.
+Novel compact dosage forms having differentiation
+with regards to improved stability and/or reduced
+pharmacokinetic variability have been developed for
+the Indian market. Stable liquid oral formulations of
+labile products are also being developed.
+• Old energy inefficient motors are replaced with
+energy efficient motors.
+• Motion sensor installed at various location to
+minimise energy wastage.
+• Piping modification for energy efficient distribution.
+• Heat recovery at MEE and ATFD to preheat boiler
+feed water.
+• Utilisation of flash steam to reduce further energy
+requirement at Heat pump.
+• Minimising duct leakages in HVAC by regular audit
+and advance sealing technology.
+Capital
+Revenue
+Total
+Total R&D
+of Total Turnover
+• Replacement of old energy inefficient pump with
+energy efficient pump in cooling towers.
+2.
+expenditure as %
+3.
+Financial Statements
+Corporate Governance Report
+Corporate Governance Report
+65
+1.
+2.
+Corporate Governance Initiatives at Sun Pharma
+The Company has taken various initiatives to implement
+the best practices with a focus on further enhancing
+the Corporate Governance standards over the years.
+Highlights of some of the key initiatives are as follows.
+⚫ Institution of the office of Lead Independent
+Director ("Lead ID") with defined role
+Statutory Reports
+and responsibilities.
+• Engagement of independent third-party agency for
+Independent Director search.
+• Adoption of standards for retirement age of
+employees, senior management and various
+categories of Board members.
+• Adoption of standard for minimum attendance of
+at least 75% at the Board/Committee meetings in a
+financial year.
+• Proactive and significant measures for shareholder
+outreach and reduction in physical shareholders and
+unclaimed dividend.
+• Shareholder Satisfaction survey for feedback
+on services provided by the Registrar and
+Transfer Agent.
+Benefits derived as a result of the above efforts
+e.g. product improvement, cost reduction, product
+development, import substitution
+• Robust Whistle Blower mechanism covering even
+the external stakeholders.
+• Introduction of "Governance Week" event to
+spread awareness on importance and relevance of
+corporate governance.
+• Strengthening corporate governance review through
+Corporate Governance and Ethics Committee (Board
+Committee).
+Corporate Overview
+Technology Absorption
+71,511.4
+(c) Not dependent on imported technology, can make
+high-end products available at competitive prices
+by using indigenously developed manufacturing
+processes and formulation technologies.
+(b) For FY 23-24, 65 formulations were developed
+and filed from our R&D locations for the Indian
+and regulated markets and 183 dossiers were
+submitted for filing in various emerging markets.
+The Company has also filed 100+ drug master files
+across various markets during the year.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(d) Offers technologically advanced differentiated
+products which are convenient and safe for
+administration to patients.
+(e) We are among the few selected companies that
+have set up completely integrated manufacturing
+capability for the production of anticancer,
+hormones, peptide, immunosuppressant and
+steroidal drugs.
+(f)
+(g) Clinical studies of some products (complex and
+difficult to formulate) have been carried out at
+our in-house clinical pharmacology units. This has
+helped to maintain R&D quality and regulatory
+compliance with significantly reduced cost.
+Your Company has not imported technology during
+the last 5 years reckoned from the beginning of the
+financial year.
+The Company has benefited from reduction in cost
+due to import substitution and increased revenue
+through higher exports.
+Earnings
+Outgo
+Year ended
+March 31, 2024
+154,052.6
+142,683.3
+62,931.5
+(a) Offers complete basket of products under
+chronic therapeutic classes. Many products are
+in the pipeline for future introduction in India,
+emerging markets, as well as US and European
+generic market. The company has developed an
+ability to challenge patents in the US market, and
+earn exclusivity.
+(in Million)
+(C) Foreign Exchange Earnings and Outgo –
+Year ended
+March 31, 2023
+API Business
+Chief Human Resources Officer
+Chief Information Officer
+6.
+Notes:
+2. Appointed on April 3, 2024, in place of Mr. Anil Rao (Chief Information Officer), upon his cessation effective from April 3, 2024.
+Remuneration of Directors
+Head - Global Supply Chain
+CEO
+1. Appointed on December 7, 2023, in place of Dr. Sapna Purohit (Head - Human Resources), upon her retirement on February 29, 2024.
+Company Secretary and Compliance Officer
+Chief Financial Officer
+6.
+Designation & Role
+Mr. Anoop Deshpande
+7.
+Mr. Dheeraj Sinha²
+Non-Executive Directors
+Mr. Suresh Rai¹
+5.
+Mr. S. Damodharan
+4.
+Mr. Sreenivas Rao
+3.
+Mr. C. S. Muralidharan
+Head India Business
+The Non-Executive Directors of the Company are entitled to sitting fees of 100,000/- for attending each meeting of
+the Board/Committee.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Executive Directors
+2.
+Sitting fees
+8,235,537
+Perquisites/
+Benefits²
+9,148,836 5,648,904
+3,098,570 1,979,148
+4,193,664 17,353,620
+38,970,086
+Aalok Shanghvi5
+15,492,852
+Sailesh Desai4
+45,744,180
+Dilip Shanghvi
+Salary¹ Variable Pay
+The Board of Directors, basis the recommendation of the Nomination and Remuneration Committee, from time to
+time, determine payment of commission to the Independent Directors, considering the attributing factors viz. period
+of directorship during the year, position as a Lead ID, Chairmanship of the Audit Committee and Chairmanship of other
+Board Committees, time spent on Board processes, etc.
+Name of Directors
+The details of Remuneration paid / payable to the Directors of the Company for the year ended March 31, 2024 are
+as follows:
+Corporate Governance Report
+73
+Financial Statements
+Statutory Reports
+Corporate Overview
+Mr. Aalok Shanghvi is entitled to variable pay, to be determined on the basis of company performance bonus plan
+where the payout is determined basis a combination of individual performance rating and business performance.
+Remuneration includes salary, bonus, variable pay (if any), perquisites, contribution to provident and superannuation
+fund and other benefits as per Company's policy, as applicable, from time to time. There is no provision for payment of
+severance fees.
+Mr. Aalok Shanghvi, Whole-time Director, is in full-time employment of the Company, and his term of appointment and
+remuneration has been approved for a period of 5 (five) years from June 1, 2023 to May 31, 2028. His directorship can
+be terminated by either party by giving notice of 30 (thirty) days.
+An agreement has been entered into with Mr. Dilip Shanghvi, Managing Director, for his term of appointment and
+remuneration for a period of 5 (five) years from April 1, 2023 to March 31, 2028. The said agreement can be terminated
+by either party by giving notice of 30 (thirty) days.
+The Board of Directors, basis the recommendation of the Nomination and Remuneration Committee, approve
+the remuneration of the Managing Director and the Whole-time Director(s), within the overall limit approved by
+the shareholders.
+(Amount in )
+Bonus
+Statutory Reports
+Corporate Governance Report
+1.
+Mr. Gautam Doshi
+1.
+the Director
+No.
+Name of
+SI.
+Five meetings of CGEC were held during the financial year ended March 31, 2024 on May 25, 2023; August 2, 2023;
+October 31, 2023; January 30, 2024 and March 29, 2024. Details of the composition of CGEC and attendance at
+meetings are as follows.
+Meetings and Composition:
+Financial Statements
+Corporate Overview
+72
+Designation
+Patient First. Always.
+The Board has constituted a Corporate Governance and Ethics Committee as the Company's philosophy on Corporate
+Governance envisages working towards highest levels of transparency, accountability and consistent value systems.
+The CGEC reports to the Audit Committee.
+Corporate Governance and Ethics Committee ("CGEC")
+1. Also appointed as Chairman of the Board effective from May 22, 2024.
+Mr. Anoop Deshpande, Company Secretary and Compliance Officer of the Company is the Secretary of RMC.
+Note:
+F.
+4
+4
+Member
+Commission³
+Mr. C. S. Muralidharan
+Chief Financial Officer
+The terms of reference of CGEC, inter alia, include, monitoring the Company's compliance with the Corporate
+Governance guidelines and applicable laws and regulations and recommending to the Board on all such matters,
+reviewing and monitoring the implementation of Policy on Related Party Transactions, etc.
+Independent Director
+Position on the
+Committee
+Number of Meetings
+entitled to attend
+No.
+Name
+SI.
+The details of senior management of the Company at present, along with the changes therein, during the financial year,
+are as follows.
+Senior Management
+G.
+During the year under review, the recommendations made by the Board Committees to the Board, were accepted by the Board.
+Recommendations of the Committees of the Board
+555
+5
+Member & Secretary
+5
+Member
+5
+Member
+Lead Independent Director
+Chief Financial Officer
+Company Secretary and
+Compliance Officer
+4. Mr. Anoop Deshpande
+Mr. C. S. Muralidharan
+3.
+Dr. Pawan Goenka
+2.
+5
+5
+Chairman
+Number of Meetings
+attended
+Mr. Kirti Ganorkar
+Total
+74
+20,570,570
+9.
+Patient First. Always.
+Related Party Transactions
+on Materiality of and Dealing with
+Scan the QR code to view the Policy
+All contracts/arrangements / transactions entered by the Company during the year under review with the related
+parties were in the ordinary course of business and on an arm's length basis. The transactions entered into pursuant
+to the omnibus and specific approvals, are reviewed periodically by the Audit Committee. No transaction of a material
+nature has been entered into by the Company with its related parties that may have a potential conflict with the
+interests of the Company. The policy on Materiality of and Dealing with Related Party Transactions as approved by the
+Board is available on the website of the Company at https://www.sunpharma.com/policies.
+Related Party Transactions
+8.
+SUN
+Scan below QR code to view the
+Policy on Material Subsidiaries
+Note: *Independent Directors are appointed pursuant to obligation under Regulation 24 of Listing Regulations, wherever applicable.
+The policy for determining material subsidiaries of the Company is available on the website of the Company at
+https://www.sunpharma.com/policies.
+Prevention of Insider Trading
+Not Applicable
+Name: SRB C & CO LLP
+Date: March 5, 2024
+Not Applicable
+Canada
+Taro Pharmaceuticals Inc. September 20, 2010
+5.
+Industries, Inc.
+USA
+November 20, 2002
+Sun Pharmaceutical
+4.
+Gautam Doshi
+Name: Lancasters Chartered Accountants
+Date: June 16, 2023
+Gautam Doshi
+Mauritius
+The Company has a Code of Conduct for Prevention of
+Insider Trading in compliance with the SEBI (Prohibition
+of Insider Trading) Regulations, 2015 to regulate,
+monitor and report trading by the Designated Person(s)
+/ and other connected person(s). The structured digital
+database of unpublished price sensitive information is
+maintained with adequate internal controls.
+Scan the QR code to view
+Number of complaints pending as on end of
+the financial year
+5.
+Number of complaints disposed of during
+the financial year
+2
+2
+Information
+Number of complaints filed during the
+financial year
+Particulars
+Disclosures in relation to the Sexual Harassment of
+Women at Workplace (Prevention, Prohibition and
+Redressal) Act, 2013, are provided in the Board's
+Report. The number of complaints during the
+financial year are given below:
+Total fees for all services paid by the Company
+and its subsidiaries, on a consolidated basis, to the
+statutory auditor and all entities in the network
+firm / network entity of which the statutory
+auditor is a part was 248.7 Million for the year
+under review.
+No loans and / or advances in the nature of
+loans are given to the firms / companies in which
+directors are interested.
+The Company's Code of practices and procedures
+for fair disclosure of unpublished price sensitive
+information is available on the website of the Company
+at https://sunpharma.com/policies.
+All the transactions with entities in which the
+Non-Executive Directors are / were interested
+constitute negligible percent of the revenue of
+the Company.
+/ other income, Reimbursement of expenses
+- received; Sun Pharma Advanced Research
+Company Limited - 824.4 Million for Revenue
+from contracts with customers - net of returns,
+Receiving of service expenses, Reimbursement
+of expenses paid, Rendering of service income,
+Reimbursement of expenses - received, Lease rent
+received and Royalty expenses; Alfa Infraprop
+Private Limited - 28.4 Million for Other
+operative income / other income, Reimbursement
+of expenses paid; and Shantilal Shanghvi
+Foundation 200.0 Million for Corporate Social
+Responsibility contribution; c) Transaction with
+entity in which Mr. Gautam Doshi is interested
+Anshul Speciality Molecules Private Limited -
+10.0 Million for Purchase of goods / services.
+Corporate Governance Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+The Company has a Global Whistle Blower Policy
+/ Vigil Mechanism to monitor the actions taken
+on complaints received under the said policy. This
+policy also outlines the reporting procedure and
+investigation mechanism to be followed in case
+an employee or external stakeholder blows the
+whistle for any wrong-doing in the Company. The
+policy is available on the website of the Company
+at https://sunpharma.com/policies. No personnel
+have been denied access to the Audit Committee.
+The Company has laid down procedures to inform
+Board members about the risk assessment and
+its minimisation, which is periodically reviewed
+to ensure that risk control is exercised by the
+management effectively.
+There were no instances of non-compliance by
+the Company on any matters related to the capital
+markets or penalties, strictures imposed on the
+Company by the Stock Exchange(s) or SEBI or
+any statutory authority on any matter related to
+capital markets, during the last three years.
+SUN
+10. Other Disclosures
+the Code of practices and
+procedures for fair disclosure
+-
+Mauritius
+October 29, 2013
+Sun Pharma Holdings,
+2. Perquisites include House Rent Allowance, if any, Leave Travel Assistance, Medical Reimbursement, contribution to Provident Fund and
+such other perquisites, payable to Directors, as per Company Policy.
+7.
+1. Salary includes Special Allowance.
+Notes:
+3,200,000
+2,500,000
+4,000,000 4,800,000
+5,100,000
+4,100,000
+1,000,000
+800,000
+700,000
+Rolf Hoffmann
+3. The Board of Directors at its meeting held on May 22, 2024 has approved payment of commission to Independent Directors.
+Sanjay Asher
+3,100,000 4,700,000
+8,500,000
+5,100,000
+3,400,000
+Rama Bijapurkar
+Gautam Doshi
+Pawan Goenka
+2,200,000
+2,200,000
+Sudhir Valia
+68,752,907
+7,800,000
+4. Ceased to be the Director of the Company upon completion of term of appointment effective from March 31, 2024.
+5. Appointed as Whole-time Director effective from June 1, 2023. The remuneration mentioned is for the entire financial year.
+6. Appointed as Independent Director effective from June 15, 2023.
+Material Subsidiaries
+3.
+Date: September 30, 2019
+Limited
+Rama Bijapurkar
+Name: SRB C & CO LLP
+India
+March 19, 2019
+Sun Pharma Distributors
+2.
+Date: August 24, 2022
+Name: S RBC & CO LLP
+India
+March 9, 2012
+Sun Pharma Laboratories
+Limited
+1.
+Company
+Name and Date of Appointment of the
+Statutory Auditors
+Place of
+Incorporation
+Date of Incorporation/
+Acquisition
+No.
+Unlisted Subsidiary
+SI.
+Name of the Material
+Company's Independent
+Director on the Material
+Unlisted Subsidiary*
+Gautam Doshi
+Details of Material Subsidiaries of the Company, identified as per the criteria prescribed under Regulation 16 and
+Regulation 24 of the Listing Regulations, for the year ended March 31, 2024 are as follows.
+60,541,920
+4
+3.
+Member
+Performance evaluation criteria for Independent Directors
+1. Appointed as a member of NRC effective from November 1, 2023.
+Mr. Anoop Deshpande, Company Secretary and Compliance Officer of the Company is the Secretary of NRC.
+Note:
+1
+1
+Member
+5
+5
+Member
+5
+5
+NRC has adopted the performance evaluation criteria for Independent Directors which is in-line with the Guidance
+Note of SEBI and ICSI on Board Evaluation. The said criteria provide certain parameters like knowledge, competency,
+fulfillment of functions, availability and attendance, initiative, integrity, contribution, independence and independent
+views and judgement. The details of the performance evaluation carried out for the financial year is provided in the
+Board's Report forming part of this Annual Report.
+Member
+5
+Chairman
+Number of Meetings
+attended
+Number of Meetings
+entitled to attend
+Independent Director
+Non-Executive Director
+Independent Director
+Lead Independent Director
+Designation
+Mr. Rolf Hoffmann¹
+4.
+5
+Mr. Sudhir Valia
+Stakeholders' Relationship Committee ("SRC")
+The terms of reference of SRC, inter alia, include, resolving the grievances of the security holders of the Company;
+reviewing measures taken for effective exercise of voting rights by shareholders; reviewing adherence to the service
+standards adopted by the Company in respect of various services being rendered by the Registrar and Share Transfer
+Agent; reviewing the various measures and initiatives taken by the Company for reducing the quantum of unclaimed
+dividends and ensuring timely receipt of dividend warrants / annual reports / statutory notices by the shareholders of
+the Company, etc.
+Member
+Lead Independent Director
+Dr. Pawan Goenka
+2.
+4
+4
+Chairman
+Independent Director
+Mr. Gautam Doshi
+1.
+Number of Meetings
+attended
+Composition of SRC and the terms of reference are in compliance with the requirements under Section 178 of the Act
+and Regulation 20 of the Listing Regulations.
+Number of Meetings
+entitled to attend
+No.
+Designation
+Name of the Director
+SI.
+Four meetings of SRC were held during the financial year ended March 31, 2024 on May 25, 2023; August 2, 2023;
+October 31, 2023 and January 30, 2024. Details of the composition of SRC and attendance at meetings are as follows.
+Meetings and Composition:
+Statutory Reports
+Corporate Governance Report
+Financial Statements
+Corporate Overview
+70
+Patient First. Always.
+Position on the
+Committee
+4
+Mr. Gautam Doshi
+Dr. Pawan Goenka
+Lead Independent Director
+Dr. Pawan Goenka
+2.
+6
+6
+Chairman
+Independent Director
+Mr. Gautam Doshi
+1.
+Number of Meetings
+attended
+Number of Meetings
+entitled to attend
+Member
+Position on the
+Committee
+Designation
+Name of the Director
+SI.
+Six meetings of the Audit Committee were held during the financial year ended March 31, 2024 on April 20, 2023; May
+25, 2023; August 2, 2023; October 31, 2023; January 30, 2024 and March 29, 2024. All the meetings were adjourned
+to the next day for consideration of few agenda items, except the meetings held on April 20, 2023 and March 29, 2024.
+Details of the composition of the Audit Committee and attendance at meetings are as follows:
+Meetings and Composition:
+69
+Corporate Governance Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+0
+No.
+2.
+6
+3.
+1.
+No.
+Name of the Director
+SI.
+C.
+Five meetings of NRC were held during the financial year ended March 31, 2024 on April 20, 2023; May 25, 2023;
+August 2, 2023; October 31, 2023 and January 30, 2024. Details of the composition of NRC and attendance at
+meetings are as follows.
+Meetings and Composition:
+The terms of reference of NRC, inter alia, include, identification, selection and recommendation of senior management
+personnel and directors; formulation of criteria for evaluation of Directors and Board and carrying out such evaluation;
+review and recommendation of remuneration of senior management and directors, etc.
+Composition of NRC and the terms of reference are in compliance with the requirements under Section 178 of the Act
+and Regulation 19 of the Listing Regulations.
+2. Ceased to be the Member of the Committee upon retirement as the Director of the Company, effective from March 31, 2024.
+Nomination and Remuneration Committee ("NRC")
+1. Appointed as the member of the Audit Committee effective from November 1, 2023.
+6
+Mr. Anoop Deshpande, Company Secretary and Compliance Officer of the Company is the Secretary of the Audit Committee.
+Notes:
+6
+6
+Member
+Whole-time Director
+Mr. Sailesh Desai²
+4.
+2
+2
+Member
+Independent Director
+Mr. Sanjay Asher¹
+B.
+4
+3.
+Mr. Sudhir Valia
+Four meetings of RMC were held during the financial year ended March 31, 2024 on May 25, 2023; August 2, 2023;
+October 31, 2023 and January 30, 2024. Details of the composition of RMC and attendance at meetings are as follows.
+Meetings and Composition:
+The terms of reference of the RMC, inter alia, include, formulation of the risk management policy, and monitoring the
+implementation of the Policy, ensuring proper systems and processes are in place to monitor and evaluate the risks
+associated with the business of the company, etc.
+Composition of RMC and the terms of reference are in compliance with the requirements under Regulation 21 of the
+Listing Regulations.
+E. Risk Management Committee ("RMC")
+3. Re-designated as Member effective from May 26, 2023.
+2. Also appointed as Chairman of the Board effective from May 22, 2024.
+1. Appointed as Chairperson of the Committee effective from May 26, 2023.
+Mr. Anoop Deshpande, Company Secretary and Compliance Officer of the Company is the Secretary of CSR Committee.
+Notes:
+3
+2
+SI.
+3
+Number of Meetings
+attended
+Member
+Non-Executive Director
+Mr. Sudhir Valia
+4.
+Member3
+Member
+Lead Independent Director
+Managing Director²
+Mr. Dilip Shanghvi
+3.
+Dr. Pawan Goenka
+3
+2.
+Position on the
+No.
+Non-Executive Director
+Mr. Sudhir Valia
+4.
+4
+4
+Member
+Independent Director
+Mr. Gautam Doshi
+3.
+4
+4
+Name of the Director
+Member
+Mr. Pawan Goenka
+2.
+4
+4
+Chairman
+Number of Meetings
+attended
+Number of Meetings
+entitled to attend
+Committee
+Designation
+Managing Director¹
+Mr. Dilip Shanghvi
+1.
+Lead Independent Director
+Ms. Rama Bijapurkar
+1.
+No.
+D.
+Pending at the end of the year i.e., March 31, 2024
+Resolved during the year
+Received during the year
+Pending at the beginning of the year i.e., April 1, 2023
+Particulars
+Investor Complaints:
+The Company is committed to ensure that the shareholders are provided best and timely services. In an endeavor
+to strengthen the shareholder services, the Company had launched web-based 'Shareholder Satisfaction Survey' on
+services provided by the Registrar and Transfer Agent ("RTA") - Link Intime India Pvt. Ltd., to the shareholders. The
+Company received responses and constructive feedback from the shareholders giving insights on measures required to
+be taken to ensure best shareholder services.
+Shareholder Satisfaction Survey on services provided by RTA:
+Further, the Company has taken advantage of market presence of its field force employees for reaching out to more
+than 500 unconnected physical shareholders of the Company. The identified shareholders were then contacted for
+facilitating completion of their KYC details and claiming unpaid dividend.
+In its endeavor to facilitate the shareholders, under the guidance of SRC, the Company has walked an extra-mile
+and has voluntarily processed dividend remaining unclaimed for previous years based on the analysis carried out for
+the shareholders whose updated Bank details were available with the Company based on the latest dividend paid
+electronically. During the year under review, the Company has carried out two exercises as a result of which, unclaimed
+dividend aggregating to ₹ 4.0 Million was paid to more than 7,000 shareholders. This resulted in reduction in the
+amount of unpaid dividend.
+Corporate Social Responsibility Committee ("CSR Committee")
+Significant measures towards reducing unclaimed dividend:
+Compliance Officer:
+Mr. Anoop Deshpande, Company Secretary and Compliance Officer of the Company is the Secretary of SRC.
+3
+4
+Member
+4
+4
+Member
+Non-Executive Director
+Managing Director
+Mr. Dilip Shanghvi
+4.
+The Board has designated Mr. Anoop Deshpande as the Compliance Officer for the purposes of / under rules,
+regulations etc. issued by the SEBI, Stock Exchanges, and Companies Act, 2013. He is also the Nodal Officer for the
+purpose of IEPF.
+No. of Complaints
+0
+46
+Name of the Director
+SI.
+3
+3
+3
+3
+entitled to attend
+Number of Meetings
+Position on the
+Chairperson¹
+Committee
+Independent Director
+Designation
+Three meetings of CSR Committee were held during the financial year ended March 31, 2024 on May 25, 2023; October
+31, 2023 and January 30, 2024. Details of the composition of CSR Committee and attendance at meetings are as follows.
+Meetings and Composition:
+71
+Corporate Governance Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+The terms of reference of the CSR Committee, inter alia, include formulation and recommendation of the CSR Policy and
+the Annual Action Plan for the financial year, and review and monitoring of the implementation of CSR projects, etc.
+Composition of the CSR Committee and the terms of reference are in compliance with the requirements under section
+135 of the Act.
+0
+46
+4
+Scan the QR code to view the
+Global Whistle Blower Policy
+Others
+The Company follows financial year from April
+to March. Details of compliance and Adoption of
+non-mandatory requirements for the year ended
+March 31, 2024:
+Distribution of Shareholding as on March 31, 2024
+F.
+Effective from April 1, 2019, SEBI has mandated that shares can be transferred only in Demat. Hence no transfer of
+shares in physical form can be lodged by the shareholders.
+Statutory Reports
+Corporate Governance Report
+Financial Statements
+Corporate Overview
+Share Transfer System
+E.
+78
+Patient First. Always.
+(Source: Compiled from data available on BSE and NSE website)
+No. of folios
+229.00%
+233.03%
+463.91%
+10 Years
+90.45%
+238.13%
+92.08%
+238.43%
+5 Years
+48.76%
+171.17%
+51.98%
+465.27%
+171.09%
+Range of shareholding
+5,001
+0.69
+16,568,303
+3.09
+74,232,375
+99.13
+Total Shares
+Total Folios
+Numbers
+% to
+% to
+Shares of face value 1/- each
+Upto 5,000
+1101
+0.35
+1,606
+2,332
+647,438
+Numbers
+50,001 100,000
+40,001 - 50,000
+30,001 - 40,000
+20,001 30,000
+10,001 20,000
+10,000
+0.25
+3 Years
+25.75%
+77.14%
+1,089
+1,112
+50,000
+1,200
+1,143
+1,159
+55,000
+1,300
+1,227
+1,260
+60,000
+1,051
+1,400
+62,622
+65,000
+1,500
+72,500
+73,651
+1,600
+72,240 71,752
+O
+1.419
+63,875
+64,831
+65,828
+66,988
+61,112
+1,100
+45,000
+988
+27.84%
+24.85%
+BSE Sensex
+% change in
+Nifty Sun Pharma Share Price
+28.61%
+64.84%
+Sun Pharma Share Price
+64.84%
+77.16%
+2 Years
+Y-o-Y
+Period
+% change in
+Share price performance relative to NIFTY and BSE Sensex based on share price on March 31, 2024
+BSE Sensex (Closing) - Closing Price of Sun Pharma's Share on BSE
+Mar-24
+Jan-24 Feb-24
+800
+Dec-23
+Nov-23
+Oct-23
+Jul-23 Aug-23 Sep-23
+Apr-23 May-23 Jun-23
+30,000
+900
+35,000
+1,000
+40,000
+977
+20,926,582
+66,528
+O
+0.87
+7,577,449
+4,016,775
+0.21
+5,127,354
+0.26
+6,145,294
+0.29
+6,956,625
+3.26
+78,201,489
+5.06
+121,381,379
+0.17
+5.76
+12.21
+293,049,819
+17.72
+425,210,747
+54.48
+1,307,134,535
+Percentage
+No. of Shares
+0.46
+5.76
+5.06
+138,263,762
+3.26
+2,768,888
+29,585
+During the year, there were pecuniary
+transactions with the Companies in which Non-
+Executive Directors are interested as follows:
+a) Transaction with entity in which Mr. Rolf
+Hoffmann is interested - NavBio AG - 7.0
+Million for Reimbursement of expenses - paid;
+b) Transactions with entities in which Mr. Sudhir
+Valia is interested, except for the subsidiaries of
+the Company wherein it is deemed that he does
+not have any personal / pecuniary interest - Sun
+Petrochemicals Private Limited - 20.7 Million
+for Lease rent received, Other operative income
+17.72
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Central and State Government
+IEPF
+54.48
+12.21
+Banks/ NBFCs/ Other Financial Institutions
+Alternate Investment Fund
+Trusts
+NRI and Foreign National
+0.12
+Bodies Corporate
+Indian Public
+0.26
+0.21
+Mutual Funds
+0.17
+Indian Promoters and Persons acting in Concert
+Foreign Portfolio Investor (Corporate)
+100.00
+2,399,334,970
+0.46
+11,048,718
+0.00
+Insurance Companies
+0.29
+0.12
+0.00
+SI.
+G. Category-wise Shareholding of Equity Shares as on March 31, 2024
+Total
+100,001 and above
+127
+159
+306
+100.00
+2,399,334,970
+100.00
+653,134
+Particulars
+1.01
+93.54
+24,294,906
+0.05
+0.13
+832
+334
+0.24
+5,788,853
+0.02
+0.24
+5,588,677
+0.02
+0.32
+2,244,357,825
+No.
+1.
+Indian Promoters and Persons acting in Concert
+Shareholding Pattern as on March 31, 2024:
+Total
+Others
+13.
+12. Central and State Government
+IEPF
+11.
+Banks / NBFCs / Other Financial Institutions
+10.
+Alternate Investment Fund
+9.
+Trusts
+8.
+NRI and Foreign National
+7.
+Bodies Corporate
+6.
+Insurance Companies
+5.
+Indian Public
+4.
+Mutual Funds
+3.
+Foreign Portfolio Investor (Corporate)
+2.
+0.05
+64,719
+Position on the
+Committee
+75,000
+4.
+Scan the QR code to view the
+Investor Presentations
+Investors Presentation: The presentations made at
+the analyst/institutional investors' meetings are
+filed with the Stock Exchanges and hosted on the
+Company's website at, https://sunpharma.com/
+investors-investor-presentations
+Pursuant to enabling circulars issued by SEBI and
+MCA from time to time, the Annual Report for
+FY 2023-24 is being sent electronically to the
+shareholders whose e-mail ids are registered.
+Hard copies shall be sent to those shareholders
+who request for the same.
+Annual Report: Annual Report containing inter alia
+Audited Annual Accounts, Consolidated Financial
+Statements, Board's Report, the Management
+Discussion and Analysis Report, Auditor's Report,
+and other important information is available on the
+website of the Company at www.sunpharma.com
+consolidated financial results is published in all
+English Editions of 'Financial Express' and Gujarati
+Edition of 'Financial Express' which is published
+in Ahmedabad.
+Corporate Governance Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+The quarterly financial results along with
+summary of significant events are also sent to the
+shareholders whose e-mail ids are registered with
+the Company and the extract of the quarterly
+Shares Related Information
+Financial Results: The quarterly results are
+regularly posted by the Company on its website
+www.sunpharma.com and are also submitted to
+the Stock Exchanges on which the securities of
+the Company are listed in accordance with the
+requirements of the Listing Regulations.
+•
+Means Of Communication
+3.
+Dividend Payment Date: On or before August 16, 2024
+B.
+A. Record Date for payment of Dividend to Equity
+Shareholders: July 12, 2024
+Dividend
+2.
+76
+Patient First. Always.
+During the year no resolution was passed through postal ballot, and no special resolution is proposed to be passed
+by postal ballot, as on the date of this report.
+Website: The Company's website
+www.sunpharma.com contains a separate
+dedicated section 'INVESTORS' where
+shareholders' information is available. The
+Annual Report for FY 2023-24 and Annual
+Reports for the past years are also available on the
+website in a user friendly and downloadable form.
+Apart from this, official news releases, detailed
+presentations made to media, analysts etc., and
+the transcript of the conference calls are also
+displayed on the Company's website.
+2. Appointment of Mr. Aalok Shanghvi (DIN: 01951829) as the
+Whole-time Director of the Company for a period of 5 (five) years
+effective from June 1, 2023 to May 31, 2028 and approve his
+remuneration for the aforesaid period, including the remuneration
+to be paid to him in the event of loss or inadequacy of profits in
+any financial year during the aforesaid period.
+A.
+Particulars
+922.45
+959.25
+Low Price
+High Price
+1,023.85
+988.90
+922.55
+988.60
+May, 2023
+960.00
+1,024.50
+Low Price
+High Price
+Listing Details
+April, 2023
+NSE
+BSE
+(Amounts in )
+Stock Market Data - Monthly high-low
+B.
+INE044A01036
+Trading Symbol - 524715
+Trading Symbol – SUNPHARMA
+Details
+The Company has duly paid the Listing fees to BSE and NSE.
+(c) Demat ISIN
+(a) BSE Limited ("BSE"), Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001
+(b) National Stock Exchange of India Limited ("NSE"), Exchange Plaza, C-1, Block G,
+Bandra Kurla Complex, Bandra (E), Mumbai - 400 051
+Particulars
+3. Re-appointment of Mr. Dilip Shanghvi (DIN: 00005588) as
+Managing Director of the Company for a further period of 5
+(five) years effective from April 1, 2023 to March 31, 2028 and
+approve his remuneration for the aforesaid period, including the
+remuneration to be paid to him in the event of loss or inadequacy
+of profits in any financial year during the aforesaid period.
+1. Appointment of Mr. Rolf Hoffmann (DIN: 10200311) as an
+Independent Director of the Company for term of 5 (five) years
+commencing from June 15, 2023 to June 14, 2028.
+2. Re-appointment of Mr. Gautam Doshi (DIN: 00004612) as an
+Independent Director of the Company for a second term of 5 (five)
+years commencing from May 25, 2023 to May 24, 2028.
+1. Payment of commission of 4,000,000/- (Rupees Forty Lakhs
+only) each to Dr. Pawan Goenka, Mr. Gautam Doshi and Ms. Rama
+Bijapurkar, Independent Directors of the Company, for the financial
+year ending on March 31, 2022.
+B.
+Monday, August 5, 2024 at 3:00 p.m. IST
+Day, Date and Time
+A. Annual General Meeting:
+General Meetings
+1.
+11. General Shareholder Information
+The Articles of Association of the Company, under
+Clause 108, confers specific rights to the promoter
+with respect to the management or control of the
+Company. This information has been disclosed
+under Clause 5A of Para A of Part A of Schedule III
+to the Stock Exchanges.
+Disclosure of certain types of agreements binding
+the Company
+During the year under review, the Company has
+complied with all the mandatory requirements
+including the requirements specified in Regulations
+17 to 27 and clause (b) to (i) of Regulation 46(2) of
+Listing Regulations, as applicable.
+The Company does not have any exposure on
+commodities directly. Accordingly, the disclosure
+pursuant to SEBI Master Circular dated July 11,
+2023 is not applicable.
+C.
+The Company is exposed to foreign exchange risks
+emanating from the business, assets and liabilities
+denominated in foreign currency. In order to hedge
+this risk, the Company proactively uses hedging
+instruments e.g., forward contracts, options and
+other simple derivatives from time to time.
+The findings of the Internal Audit are
+reported to the Audit Committee periodically.
+Corporate Governance Report
+75
+Financial Statements
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+The Lead Independent Director presides over
+the meetings of the Board in absence of a
+regular Chairman.
+The Statutory Auditor has issued an
+unmodified opinion to the financial
+statements of the Company.
+70,000
+The Company sends on quarterly basis,
+the quarterly financial results along with
+summary of significant events to the
+shareholders whose e-mail ids are available
+with the Company / RTA.
+Disclosure of commodity price risk or foreign
+exchange risk and commodity hedging activities
+Venue
+Through Video Conferencing / Other Audio-Visual means
+Location and time of the last three Annual General Meetings and the special resolutions passed, if any:
+Approval of re-appointment and maximum remuneration of
+Mr. Kalyanasundaram Subramanian (DIN: 00179072) as the
+Whole-time Director of the Company for a further period of 2 (Two)
+years effective from February 14, 2021 up to February 13, 2023.
+2. Approval of maximum remuneration of Mr. Sailesh Desai as the
+Whole-time Director (DIN: 00005443) for a period of 2 (Two) years
+with effect from April 1, 2022 to March 31, 2024 i.e., up to the
+expiry of his present term of office.
+1.
+Details of Special Resolution Passed
+Resolution Passed Through Postal Ballot:
+August 28,
+2023 at
+3:00 p.m.
+August 29,
+2022 at
+3:00 p.m.
+Date and Time
+August 31,
+2021 at
+3:00 p.m.
+Held through Video
+Conferencing and
+deemed to be held at
+the registered office
+of the Company at
+SPARC, Tandalja,
+Vadodara 390012.
+(Registered Office of
+the Company)
+Conferencing and
+deemed to be held at
+the registered office
+of the Company at
+SPARC, Tandalja,
+Vadodara 390012.
+(Registered Office of
+the Company)
+AGM
+first
+2022-23 Thirty-
+AGM
+2021-22 Thirtieth Held through Video
+the Company)
+(Registered Office of
+390012.
+Vadodara
+SPARC, Tandalja,
+of the Company at
+Conferencing and
+deemed to be held at
+the registered office
+Ninth
+AGM
+2020-21 Twenty- Held through Video
+Meeting
+Year
+June, 2023
+1,056.00
+Location
+1,055.00
+1,143
+1,259
+16,000
+18,000
+18,065
+1,400
+18,534
+1,418
+O
+19,080
+19,254
+19,189
+1,112
+20,000
+1,500
+19,754
+21,983
+20,133
+22,327
+22,000
+1,600
+21,731 21,726
+1,578
+1,621
+1,700
+19,638
+77
+1,159
+O
+1,052
+1,621
+1,576
+975.20
+1,700
+Sun Pharmaceutical Industries Limited & BSE Sensex closing price:
+80,000
+- Closing Price of Sun Pharma's Share on NSE
+Feb-24 Mar-24
+Dec-23 Jan-24
+800
+Nov-23
+Oct-23
+1,226
+O
+Aug-23 Sep-23
+Apr-23 May-23 Jun-23
+10,000
+900
+1,000
+1,100
+1,200
+1,300
+975
+O
+988
+14,000
+1,089
+O
+Jul-23
+NSE Nifty (Closing)
+24,000
+12,000
+Corporate Governance Report
+1,231.15
+1,082.80
+1,231.55
+November, 2023
+1,139.25
+1,161.95
+1,069.00
+1,161.75
+October, 2023
+1,102.00
+1,167.40
+1,102.00
+1,167.00
+September, 2023
+1,100.25
+1,101.45
+1,169.90
+August, 2023
+1,028.75
+1,155.35
+1,028.35
+Share Price performance in comparison to broad-based indices
+Sun Pharmaceutical Industries Limited & NSE Nifty closing price:
+975.00
+July, 2023
+1,155.00
+1,082.60
+December, 2023
+1,169.70
+February, 2024
+D.
+Corporate Overview
+Statutory Reports
+January, 2024
+Financial Statements
+C.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+(Source: BSE and NSE website)
+1,634.00
+1,520.30
+1,634.05
+March, 2024
+1,398.90
+1,520.50
+1,399.65
+1,587.80
+1,209.00
+1,208.55
+1,252.75
+1,438.90
+1,438.50
+1,252.50
+1,272.00
+1,587.85
+1,271.95
+The procedures selected depend on the auditor's
+judgement, including the assessment of the risks
+associated in compliance of the Corporate Governance
+Report with the applicable criteria. Summary of
+procedures performed include:
+Pursuant to the requirements of the Listing Regulations,
+our responsibility is to provide a reasonable assurance
+in the form of an opinion whether, the Company has
+complied with the conditions of Corporate Governance
+as specified in the Listing Regulations.
+4.
+Auditor's Responsibility
+The Management along with the Board of Directors
+are also responsible for ensuring that the Company
+complies with the conditions of Corporate Governance
+as stipulated in the Listing Regulations, issued by the
+Securities and Exchange Board of India.
+5.
+iii.
+The preparation of the Corporate Governance Report is
+the responsibility of the Management of the Company
+including the preparation and maintenance of all
+relevant supporting records and documents. This
+responsibility also includes the design, implementation
+and maintenance of internal control relevant to
+the preparation and presentation of the Corporate
+Governance Report.
+2.
+ii.
+Management's Responsibility
+We conducted our examination of the Corporate
+Governance Report in accordance with the Guidance
+Note on Reports or Certificates for Special Purposes
+and the Guidance Note on Certification of Corporate
+Governance, both issued by the Institute of Chartered
+Accountants of India ("ICAI"). The Guidance Note on
+Reports or Certificates for Special Purposes requires
+that we comply with the ethical requirements of the
+Code of Ethics issued by ICAI.
+31, 2024 as required by the Company for annual
+submission to the Stock Exchange.
+i.
+3.
+iv.
+(d)
+Read and understood the information prepared
+by the Company and included in its Corporate
+Governance Report;
+Obtained necessary declarations from the
+directors of the Company;
+(h) Corporate Governance and Ethics Committee.
+We have complied with the relevant applicable
+requirements of the Standard on Quality Control (SQC)
+1, Quality Control for Firms that Perform Audits and
+Reviews of Historical Financial Information, and Other
+Assurance and Related Services Engagements.
+Corporate Social Responsibility Committee;
+(g)
+Risk Management Committee;
+(f)
+Stakeholders Relationship Committee;
+V.
+(e)
+Annual General Meeting (AGM);
+(c)
+(b) Audit Committee;
+Board of Directors;
+(a)
+Obtained and read the minutes of the following
+committee meetings/other meetings held from
+April 01, 2023 to March 31, 2024:
+Obtained and read the Register of Directors as
+on March 31, 2024 and verified that atleast one
+independent woman director was on the Board of
+Directors throughout the year;
+Obtained and verified that the composition of the
+Board of Directors with respect to executive and
+non-executive directors has been met throughout
+the reporting period;
+Nomination and Remuneration Committee;
+7.
+June 15, 2023
+The Corporate Governance Report prepared by Sun
+Pharmaceutical Industries Limited (hereinafter the
+"Company"), contains details as specified in regulations
+17 to 27, clauses (b) to (i) and (t) of sub - regulation (2)
+of regulation 46 and para C, D, and E of Schedule V
+of the Securities and Exchange Board of India (Listing
+Obligations and Disclosure Requirements) Regulations,
+2015, as amended ("the Listing Regulations")
+("Applicable criteria") for the year ended March
+March 25, 1999
+June 1, 2023
+November 1, 2022
+May 25, 2018
+May 21, 2021
+May 21, 2021
+January 31, 1994
+March 1, 1993
+Date of Appointment in the Company
+00005443
+10200311
+01951829
+00008221
+00004612
+00254502
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+00001835
+* Ceased to be director with effect from March 31, 2024.
+6.
+Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the
+management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate
+is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the
+management has conducted the affairs of the Company.
+Practicing Company Secretary
+1.
+The Members of Sun Pharmaceutical Industries Limited
+Independent Auditor's Report on compliance with the conditions of Corporate Governance as per provisions of
+Chapter IV of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
+2015, as amended
+Statutory Reports
+Corporate Governance Report
+Financial Statements
+Corporate Overview
+82
+Patient First. Always.
+Place: Vadodara
+Date: May 22, 2024
+UDIN: F012908F000424495
+CP No.: 20120
+PCS No.: 12908
+Partner
+Alpeshkumar Panchal
+Peer Review Certificate No. 2797 / 2022
+Firm Unique Identification No. - L2020MH006601
+For KJB & CO LLP,
+8.
+85
+Statutory Reports
+Registered office address
+4.
+Year of incorporation
+3.
+Name of the Listed Entity
+2.
+Corporate Identity Number (CIN) of the Listed Entity
+1.
+SECTION A: GENERAL DISCLOSURES
+Business Responsibility and Sustainability Report
+Financial Statements
+Statutory Reports
+Details of the listed entity
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Aalok Shanghvi
+Whole-time Director
+Regards,
+5.
+While we continue to integrate sustainability principles into
+our operations, and deliver on our promises of sustainable
+value creation, we welcome your valuable feedback in order
+to improve our sustainability performance.
+Corporate address
+E-mail
+00005561
+Name of assurance provider
+14.
+13.
+Reporting Boundary
+Name and contact details (telephone, email address) of the person
+who may be contacted in case of any queries on the BRSR report
+12.
+Paid-up Capital
+11.
+Name of the Stock Exchange(s) where shares are listed
+10.
+Financial year for which reporting is being done
+9.
+Website
+8.
+Telephone
+7.
+6.
+Corporate Overview
+Furthermore, as a member of the United Nations Global
+Compact (UNGC), we support the 10 principles covering
+human rights, labor, environment and anti-corruption and we
+are committed to ensure that these principles are a part of
+our overall business strategy.
+Our Corporate Social Responsibility (CSR) initiatives continue
+to positively impact underprivileged communities and
+respond to their needs in areas like healthcare, education,
+water & sanitation, rural development, and environmental
+conservation. We implement focused and socially responsible
+initiatives with the objective of holistic development of our
+local communities. Furthermore, our CSR programs are
+designed to contribute towards the realisation of the United
+Nations Sustainable Development Goals (UN SDGs).
+Chartered Accountants
+For SR BC & CO LLP
+11. This report is addressed to and provided to the members
+of the Company solely for the purpose of enabling it to
+comply with its obligations under the Listing Regulations
+with reference to compliance with the relevant
+regulations of Corporate Governance and should not
+be used by any other person or for any other purpose.
+Accordingly, we do not accept or assume any liability
+or any duty of care or for any other purpose or to any
+other party to whom it is shown or into whose hands it
+may come without our prior consent in writing. We have
+no responsibility to update this report for events and
+circumstances occurring after the date of this report.
+83
+10. This report is neither an assurance as to the future
+viability of the Company nor the efficiency or
+effectiveness with which the management has
+conducted the affairs of the Company.
+Other matters and Restriction on Use
+Based on the procedures performed by us, as
+referred in paragraph 7 above, and according to the
+information and explanations given to us, we are of
+the opinion that the Company has complied with the
+conditions of Corporate Governance as specified in the
+Listing Regulations, as applicable for the year ended
+March 31, 2024, referred to in paragraph 4 above.
+9.
+Opinion
+The above-mentioned procedures include examining
+evidence supporting the particulars in the Corporate
+Governance Report on a test basis. Further, our
+scope of work under this report did not involve us
+performing audit tests for the purposes of expressing
+an opinion on the fairness or accuracy of any of the
+financial information or the financial statements of
+the Company taken as a whole.
+management and also obtained necessary
+specific representations from management.
+viii. Performed necessary inquiries with the
+transactions during the year and balances at the
+year end; Obtained and read the minutes of the
+audit committee meeting where in such related
+party transactions have been pre-approved prior
+by the audit committee;
+vii. Obtained the schedule of related party
+vi. Obtained and read the policy adopted by the
+Company for related party transactions;
+Corporate Governance Report
+Financial Statements
+ICAI Firm Registration Number: 324982E/E300003
+Our holistic corporate governance framework is the
+foundation of our commitment to uphold the highest
+standards of ethical governance, and enabling sustainable
+outcomes for all our stakeholders. Our corporate
+governance approach rests on our commitment of going
+beyond compliance, increasing transparency and fostering
+reliability, trust and consistency. Under the guidance of our
+Board, we have established various committees focusing
+on different aspects of responsible business practices.
+Our comprehensive set of corporate policies help us in
+implementation of these practices. We also employ a secure
+grievance redressal and global whistle blower mechanism
+for our stakeholders, enabling us to uphold our values and
+highest standards of corporate governance.
+per Paul Alvares
+Partner
+Patient First. Always.
+Ensuring safety of our workforce is a key priority for us.
+We have inculcated best-in-class safety practices aligned
+with our Environment, Health, and Safety (EHS) Policy. We
+also carry out extensive health and safety related training
+programs across all our locations directed at creating a
+culture of safety, awareness and responsible behavior.
+efforts towards fostering a conducive working environment
+for employees through training and inclusive policies that
+promotes employee well-being and resource development.
+Our people-centric philosophy fosters empowerment of our
+employees to reach their fullest potential, trust building and
+propels them to achieve organisational objectives.
+Our people form the foundation of our success. We have
+implemented various focused initiatives to attract and retain
+a highly diverse and skilled workforce. This further drives
+innovation and fosters synergy, giving us a competitive
+edge. Through a systemic approach, we make focused
+We also target to achieve a 10% reduction in our water
+consumption by 2025, compared to the baseline year of
+2020. Our water management initiatives have helped us to
+minimise our water footprint and reduce water consumption
+by 31.17% compared to the base year of 2020. We have
+further set a target to co-process 30% of hazardous waste
+by 2025. In FY 2023-24 we have co-processed 28.34% of
+hazardous waste.
+We have set targets to address Scope 1 and Scope 2
+emissions, water consumption, and Co-processing of
+hazardous waste. We aim to achieve a 35% reduction in our
+absolute Scope 1 and Scope 2 carbon emissions by 2030,
+compared to the baseline year of 2020. Over the last four
+years, we have reduced our combined Scope 1 and Scope 2
+carbon emissions by 21.85%. We are allocating significant
+investments for projects in renewable energy and for our
+energy saving initiatives. Renewable energy now accounts
+for 45.23% in our overall energy mix.
+At Sun Pharma, we are committed to addressing the impact
+of climate change through strategic actions to manage and
+mitigate carbon emissions associated with our operations.
+In FY2023-24, we initiated a physical and transition climate
+risk assessment for all our locations and also carried out a
+Biodiversity risk assessment for five of our manufacturing
+locations. We will continue to evaluate our exposure
+to climate change related risks and opportunities and
+implement necessary mitigation measures as required.
+We are strongly focused on our core value of "Reaching
+People. Touching Lives". Our diverse product portfolio and
+global presence enables us to deliver high-quality medicines
+to positively impact the well-being of patients. We also
+continue to invest in R&D to develop new and innovative
+molecules and improve accessibility.
+We continue to integrate principles of sustainability within
+our business through well-defined goals and initiatives
+coupled with a clear roadmap to achieve these objectives.
+This report demonstrates our efforts to integrate
+sustainability into our operations while providing a holistic
+view of our Environmental, Social and Governance (ESG)
+performance for FY2023-24.
+I am extremely pleased to present our Business Responsibility
+and Sustainability Report (BRSR) for FY2023-24, underscoring
+our unwavering commitment to sustainability and creating
+long-term value for all our stakeholders.
+Dear Stakeholders,
+Director's Message
+Business Responsibility and Sustainability Report
+Business Responsibility and Sustainability Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+84
+Membership Number: 105754
+UDIN: 24105754BKBZNU1630
+Place of Signature: Mumbai
+Date: May 22, 2024
+00005588
+A1+
+Sailesh Desai*
+Commercial Paper
+Bank Facility (Long-Term)
+15.
+Bank Facility (Short-Term)
+CRISIL Limited
+A1+
+Commercial Paper
+AAA / Stable
+A1+
+Long-Term Short-Term, Fund-based / Non-fund Based Limits
+Remarks
+Rating
+Instrument Type
+Rating Agency
+Credit Ratings
+6.
+Sun Pharmaceutical Industries Limited
+Telephone: (+91 22) 4324 4324
+Email: secretarial@sunpharma.com
+ICRA Limited
+AAA (Stable) / A1+ No revisions in credit rating
+during the financial year
+No revisions in credit rating
+during the financial year
+Patient First. Always.
+Baddi
+3.
+Plot No. 4708, GIDC Ankleshwar, Gujarat - 393 002
+Ahmednagar
+Ankleshwar
+2.
+1.
+No.
+Address
+Location
+SI.
+A-7 & A-8, MIDC Ind. Area, Ahmednagar, Maharashtra - 414 111
+Financial Statements
+Corporate Governance Report
+Statutory Reports
+Corporate Overview
+Plant Locations as on March 31, 2024:
+7.
+80
+Sun Pharmaceutical Industries Limited
+Telephone: (+91 22) 4324 4324,
+Email: investor.relations@sunpharma.com
+Telephone: (+91 22) 4324 4324,
+Email: secretarial@sunpharma.com
+Sun Pharmaceutical Industries Limited
+Sun House, Plot No. 201 B/1,
+Western Express Highway, Goregaon (E),
+Mumbai - 400063
+Portal: https://swayam.linkintime.co.in/
+276
+No. of No. of equity shares of
+Shareholders
+* 1/- each
+Number of shareholders and the outstanding shares lying in the Unclaimed Suspense Account
+as on April 1, 2023.
+Particulars
+The status of outstanding unclaimed shares in the Unclaimed Share Suspense Account of the Company is as under:-
+Outstanding Unclaimed Shares
+Outstanding GDRs/ ADRs/Warrants or any Convertible instruments, conversion date and likely impact on equity:
+The Company does not have any outstanding GDRs/ ADRs/Warrants / Convertible Instruments as on March 31, 2024.
+About 99.82% of the outstanding equity shares have been dematerialised up to March 31, 2024. Trading in Shares of
+the Company is permitted only in dematerialised form. The Company's equity shares are fairly liquid and are actively
+traded on BSE and NSE.
+Dematerialisation of Shares and Liquidity
+J.
+I.
+H.
+79
+Corporate Governance Report
+Statutory Reports
+Corporate Overview
+Financial Statements
+117,055
+4.
+Shareholders who approached the Company for transfer of shares from the said Unclaimed
+Suspense Account during the period from April 1, 2023 up to March 31, 2024.
+Shareholders to whom shares were transferred from the Unclaimed Suspense Account during
+the said period from April 1, 2023 up to March 31, 2024.
+2,016
+Tel. No.: +91 22 4918 6270 / +91 22 4918 6000
+Fax No.: +91 22 4918 6060
+Vikhroli West, Mumbai - 400083
+C 101, 247 Park, L.B.S. Marg,
+Unit: Sun Pharmaceutical Industries Limited,
+Link Intime India Private Limited,
+IEPF Nodal Officer
+Mr. Anoop Deshpande
+Institutional Investors
+Dr. Abhishek Sharma
+Individual Investors
+Registrars & Transfer Agent
+Note: The voting rights in respect of these shares shall remain frozen till the claim of the righteous shareholders is approved by the Company.
+5. Investor Correspondence:
+140
+114,899
+269
+2
+Number of shareholders and the outstanding shares lying in the Unclaimed Suspense Account
+as on March 31, 2024.
+Transferred to IEPF during the said period from April 1, 2023 up to March 31, 2024.
+2,016
+5
+5
+Dadra
+5.
+Dahej
+We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Sun
+Pharmaceutical Industries Limited having CIN: L24230GJ1993PLC019050 and having registered office at SPARC, Tandalja,
+Vadodara Gujarat - 390012 (hereinafter referred to as "the Company"), produced before us by the Company for the
+purpose of issuing this certificate, in accordance with Regulation 34(3) read with Schedule V para C sub clause 10(i) of the
+Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015.
+Add: SPARC, Tandalja, Vadodara, Gujarat - 390012
+CIN: L24230GJ1993PLC019050
+Sun Pharmaceutical Industries Limited
+The Members of
+To,
+ANNEXURE B
+81
+Pursuant to Regulation 34(3) and Schedule V para C clause (10) (i) of the SEBI
+(Listing Obligations and Disclosure Requirements) Regulation, 2015.
+CERTIFICATE
+Corporate Governance Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+(DIN: 00005588)
+Dilip Shanghvi
+Chairman and Managing Director
+For Sun Pharmaceutical Industries Limited
+In our opinion and to the best of our information and according to the verifications (including Directors Identification
+Number (DIN) status at the MCA portal www.mca.gov.in) as considered necessary and explanations furnished to us by
+the Company & its officers, we hereby certify that none of the Directors on the Board of Directors of the Company as
+stated below for the financial year ending on March 31, 2024 have been debarred or disqualified from being appointed or
+continuing as Directors of the Companies by the Securities Exchange and Board of India, Ministry of Corporate Affairs or
+any such other Statutory Authority.
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Sr.
+No
+9.
+Rolf Hoffmann
+8.
+Aalok Shanghvi
+7.
+Sanjay Asher
+6.
+Gautam Doshi
+5.
+Pawan Goenka
+4.
+Rama Bijapurkar
+3
+Sudhir Valia
+2.
+Dilip Shanghvi
+1.
+Name of the Directors
+Director Identification Number (DIN)
+Date: May 22, 2024
+I, Dilip Shanghvi, Chairman and Managing Director of Sun Pharmaceutical Industries Limited ("the Company") hereby
+declare that, to the best of my information, all the Board Members and Senior Management Personnel of the Company
+have affirmed their compliance and undertaken to continue to comply with the Global Code of Conduct laid down by the
+Board of Directors of the Company.
+14. Toansa
+Silvassa
+13.
+Paonta Sahib
+12.
+Panoli
+11.
+Mohali
+10.
+Malanpur
+9.
+Maduranthakam
+8.
+Halol
+7.
+Dewas
+6.
+15. Bengaluru
+Place: Mumbai
+Khasra No.- 1335-1340, Near EPIP Phase-1, Hill Top Industrial Area, Village-Bhatolikalan, P.O. Barotiwala, Tehsil
+Nalagarh, Distt-Solan, BADDI, Himachal Pradesh - 174 103
+Plot No. Z/15, SEZ-1, Po. Dahej, Taluko Vagra, Dist. Bharuch, Gujarat - 392 130
+ANNEXURE A
+Declaration of Compliance with Code of Conduct for the year ended March 31, 2024
+Whole-time Director
+(DIN: 01951829)
+Chairman and Managing Director
+(DIN: 00005588)
+Place: Mumbai
+Date: May 22, 2024
+Aalok Shanghvi
+Dilip Shanghvi
+For and on behalf of the Board of Directors
+Sy No.: 16, Ekarajapura, 8km, Stone Siddlagatta Road, Hasigala Post, Hosakote, Bengaluru - 562114
+Survey No. 214, Plot No. 20, Govt.Industrial Area, Phase II, Piparia, Silvassa - 396 230, (U.T. of D & NH)
+Village Toansa P.O. Railmajra Distt. Nawansahar, Punjab - 144 533
+Village & P.O. Ganguwala, Tehsil. Paonta Sahib, Dist. Sirmour, Himachal Pradesh - 173 025
+Plot No. 24/2 & 25, GIDC, Phase-IV, Panoli, Dist. Bharuch, Gujarat - 394 116
+SEZ Unit-I, Plot A-41, Industrial Area, Phase-VIIIA, S.A.S Nagar, Mohali, Punjab - 160 071
+K-5, 6, 7,10 Ghirongi Malanpur, Dist. Bhind, Madhya Pradesh - 477 116
+Sathammai Village, Karunkuzhi Post, Maduranthakam TK, Kanchipuram District, Tamil Nadu - 603 303
+Halol-Baroda Highway, Halol, Dist. Panchmahal, Gujarat - 389 350
+Industrial Area 3, A. B. Road, Dewas, Madhya Pradesh - 455 001
+Survey No. 1012, Dadra - 396 193 (U.T. of D & N.H & Daman & Diu)
+Type of assurance obtained
+9,895
+Sun Pharmaceutical Industries Limited (SPIL)
+1993
+Number of
+complaints
+pending
+resolution
+Number of
+complaints
+filed
+during the
+year
+FY 2023-24
+Grievance Redressal Mechanism in place
+(Yes/No) (If Yes, then provide web-link for
+grievance redress policy)
+Stakeholder group
+from whom complaint
+is received
+Remarks
+25. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
+Business Conduct:
+202,751.7
+Yes
+87
+Transparency and Disclosures Compliances
+(iii) Net Worth (as per Companies Act) (in Million):
+Turnover (in Million):
+(ii)
+193,018.8
+at close of
+the year
+filed
+during the
+year
+0
+pending
+resolution
+Number of
+complaints
+FY 2022-23
+Yes, value chain partners can file
+Value Chain Partners
+complaint-form/
+Yes, customer complaints and grievances
+can be reported through emails, couriers
+and the product quality complaint form
+available on the Company website:
+https://sunpharma.com/product-quality-
+Yes, all employees and workers may
+raise and report their concerns under
+the purview of the Global Whistleblower
+Policy. As detailed in the policy, complaints
+and concerns can be recorded through
+various channels, including an email
+address, web portal and via written
+communication.
+specified/ defined by SEBI, Share Transfer
+Registrars/Agents respond to enquiries/
+questions, requests, and complaints.
+There is a dedicated email id to receive
+the grievances from shareholders -
+secretarial@sunpharma.com.
+Yes, the company has a procedure for
+resolving shareholder grievances. Link
+In time India Private Limited has been
+appointed as the Company's Share
+Transfer Registrars/Agents. They handle
+shareholder inquiries, requests, and
+complaints. Within the framework
+Yes, the Company utilises mobile health
+care units to reach out to peripheral
+villages in areas surrounding it's locations.
+Each mobile health care unit carries a
+register that is accessible to all community
+members in order to record grievances
+and questions through written complaints.
+The concerned authority members then
+take the necessary steps to address the
+concerns raised.
+Customers
+Employees and workers
+Shareholders
+Communities
+0
+0
+24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013:
+Corporate Social Responsibility (CSR) Details
+Business Responsibility and Sustainability Report
+Financial Statements
+Male
+10.00%
+13.20%
+13.90%
+Total
+Female
+Male
+13.20%
+Total
+13.59%
+Female
+11.29%
+Male
+13.90%
+Permanent Employees
+FY 2021-22
+FY 2022-23
+FY 2023-24
+0
+0
+2
+11.11
+Female
+15.70%
+at close of
+the year
+Total
+Permanent Workers
+Statutory Reports
+Corporate Overview
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Most of the Company level policies and practices essential for SPIL are also extended to subsidiaries and
+associates subject to applicable local rules and regulations. Our Indian subsidiaries, where applicable, participate in
+the sustainability and business responsibility initiatives of our Company.
+https://sunpharma.com/investors-annual-reports-presentations/
+The names of the holding / subsidiary / associate companies / joint ventures as on March 31, 2024, are available
+on page 292 of our Annual Report for FY 2023-24. The Annual Report can be accessed at the following link:
+23. (a) Names of holding / subsidiary / associate companies / joint ventures
+Holding, Subsidiary and Associate Companies (including joint ventures)
+10.30%
+10.50%
+10.30%
+6.10%
+2.20%
+6.20%
+6.78%
+2.82%
+7.11%
+10.40%
+0
+46
+46
+Ensure continued and strict
+compliance with global quality
+standards and protocols and
+the applicable local regulatory
+requirements.
+Focused and regular training is
+provided to all staff members to
+ensure strict compliance with the
+Company's business ethics and Global
+Code of Conduct. Strong focus is
+also given to quality control at all
+operational locations to maintain
+CGMP compliance.
+Consistent and regular engagement
+with regulatory agencies in all our
+markets, to ensure compliance
+and reduce any possibility of non-
+compliance.
+1.
+2.
+1.
+Risk: As a pharmaceutical
+Company, we are highly
+vulnerable to product quality
+and safety concerns. Hence, it
+is imperative to address risks
+associated with product quality
+and operational safety.
+Opportunity: Compliance and
+alignment with ethical and
+responsible governance practices
+and standards will result in the
+sustainable creation of long-term
+value for all stakeholders.
+Risk: Failure to maintain and
+uphold the highest standards
+of corporate governance and
+business ethics could result in
+regulatory consequences as well
+as financial and reputational
+damage
+Opportunity
+and Data
+Privacy
+Cyber Security Risk and
+3.
+Risk
+Risk and
+Opportunity
+whether risk
+or opportunity opportunity
+(R/O)
+Rationale for identifying the risk/ In case of risk, approach to adapt or mitigate opportunity (Indicate positive or
+2. Provide for robust and centralised
+pharmacovigilance systems with
+thorough Standard Operating
+Procedures (SOPs) to ensure
+effective monitoring and
+Financial implications of the risk or
+reporting of adverse events.
+negative implications)
+Sun Pharmaceutical Industries Limited | Annual Report 2023-24
+Negative: The absence of a
+strong data integrity and security
+mechanism significantly increases
+the risk of data breaches,
+potentially leading to the loss
+of valuable data with potential
+adverse effects on the business.
+Breaches of customer/
+stakeholder data may expose us
+to litigation, fines, and penalties.
+Positive: Compliance and
+alignment with data security
+and privacy laws is maintained
+through adoption of cutting-
+edge technology, digitalisation,
+and adherence to data integrity
+principles ingrained in our
+data loss, enhances productivity,
+processes. This safeguards against
+and fosters sustainable long-term
+growth.
+penalties.
+management, antivirus software,
+IT monitoring systems, and perimeter
+protection to reduce the risks
+associated with cyber security and
+data breaches. Furthermore, we
+regularly provide training to our
+staff members on cybersecurity and
+reaffirm this knowledge through
+recurring internal emails that address
+secure data practices, safeguarding
+against phishing emails, and
+averting hacker attacks.
+2. We've implemented patch
+and simulated hacker attacks of our
+IT systems are undertaken to prevent
+breaches of Company or stakeholders'
+data.
+Opportunity: Providing for a
+secured IT network through a
+strong governance mechanism
+for data integrity, technology,
+and digitalisation, which in
+turn enhances productivity
+and facilitates continuity of
+operations and thereby enhance
+the business performance.
+and data privacy risk/threat
+directly affects the security and
+integrity of the IT system of the
+entire business.
+Risk: Any potential cybersecurity 1. Regular vulnerability assessments
+5. Implement measures to protect our
+brand (intellectual property and
+trademarks) and combat counterfeiting,
+for ensuring the authenticity of our
+products in the market.
+4. Undertake detailed and regular quality
+assessments of third-party suppliers.
+and employee skill development.
+current Good Manufacturing Practices legal repercussions, fines and
+(cGMP), automation, digitalisation,
+Negative: Significant concerns
+with product safety and quality
+could lead to recalls and
+regulatory alerts, temporarily
+impair business operations,
+and harm our reputation and
+brand. It could also result in
+Positive: Sustaining the highest
+standards of product quality
+and safety builds the Company's
+reputation with stakeholders
+and improves our brand image
+positively.
+Positive: The Company's
+commitment to ethical and
+responsible business practices
+and continual regulatory
+compliance will be positively
+regarded by stakeholders,
+enhancing our reputation as an
+ethical corporate citizen.
+Negative: Noncompliance
+with regulatory standards may
+adversely affect the Company's
+reputation and long-term
+business continuity.
+3. Regular investment in technological
+advancement, training programs on
+1
+Indicate
+Quality, Safety
+complaints via email, shared service
+helpdesk, or the Global Whistleblower
+mechanism.
+0
+0
+0
+0
+7
+1,011*
+29
+1,034*
+0
+7
+0
+2
+Remarks
+0
+34
+0
+* These complaints pertain to packaging defects such as missing components, damaged label, damaged outer packaging, product quality, etc.
+Management
+Patient First. Always.
+Corporate Overview
+and Recall
+Product
+2.
+Ethics
+and Business
+Governance
+Corporate
+1.
+identified
+No.
+Material issue
+Sr.
+Material responsible business conduct and sustainability issues pertaining to environmental and social matters that
+present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the
+risk along-with its financial implications:
+26. Overview of the entity's material responsible business conduct issues
+Business Responsibility and Sustainability Report
+Financial Statements
+Statutory Reports
+88
+L24230GJ1993PLC019050
+9
+No. (B)
+The end consumers are our patients, who are serviced through our distribution chain including distributors, wholesalers
+and retailers.
+A brief on types of customers
+C.
+Over time, the Company has expanded its market presence to approximately 100 countries across six continents:
+Asia, North America, Europe, Africa, South America, and Australia. It actively pursues initiatives to meet global market
+demands and enhance exports, with exports accounting for 72.7% of total turnover in the reporting year.
+What is the contribution of exports as a percentage of the total turnover of the entity?
+Approximately 100 countries served across the six continents - Asia, North America,
+Europe, Africa, South America and Australia
+International (No. of Countries)
+Patient First. Always.
+13
+Total
+b.
+Pan-India
+Number
+National (No. of States)
+Locations
+Number of locations
+21
+86
+Employees
+20. Details as at the end of Financial Year:
+14,760
+Permanent (D)
+Employees
+% (C/A)
+No. (C)
+% (B/A)
+No. (B)
+Total (A)
+Particulars
+Female
+Male
+Employees and workers (including differently abled):
+a.
+Business Responsibility and Sustainability Report
+Financial Statements
+Statutory Reports
+Corporate Overview
+a.
+19. Markets served by the entity:
+* The plants include the Company's manufacturing locations and R&D centers
+3
+13
+1.
+No.
+Description of Main Activity
+Sr.
+16. Details of business activities (accounting for 90% of the turnover):
+Products/services
+DNV Business Assurance India Private Limited
+Reasonable Assurance
+Standalone Basis
+Tel. No. +91-22-4324 4324
+Anoop Deshpande (Company Secretary and Compliance Officer)
+Email: anoop.deshpande@sunpharma.com
+BSE Limited, National Stock Exchange of India Limited
+2,399,334,970
+April 1, 2023 to March 31, 2024
+www.sunpharma.com
+(+91 22) 4324 4324
+secretarial@sunpharma.com
+Sun House, CTS No. 201 B/1, Western Express Highway,
+Goregaon (E), Mumbai 400063, Maharashtra, India
+SPARC, Tandalja, Vadodara - 390012, Gujarat
+Pharmaceutical
+13,327
+Description of Business Activity
+Manufacturing and marketing of pharmaceutical products
+Number of offices
+Number of plants
+18*
+0
+International
+National
+Location
+18. Number of locations where plants and/or operations/offices of the entity are situated:
+Operations
+1. Manufacture of pharmaceuticals, medicinal and chemical products
+100%
+210
+% of total Turnover contributed
+NIC Code
+No.
+Product/Service
+Sr.
+17. Products/Services sold by the entity (accounting for 90% of the entity's Turnover):
+100%
+% of Turnover of the entity
+90.29
+1,433
+9.71
+Permanent (F)
+Workers
+12.50
+1
+87.50
+7
+8
+Total employees (D+E)
+0
+0
+0
+Other than Permanent (E)
+12.50
+1
+87.50
+7
+8
+28
+Permanent (D)
+23
+5
+Total (A)
+No. and percentage of Females
+22. Turnover rate for permanent employees and workers
+Key Management Personnel
+Board of Directors
+21. Participation/Inclusion/Representation of women
+17.86
+5
+82.14
+23
+28
+Total workers (F+G)
+0
+0
+0
+Other than Permanent (G)
+17.86
+82.14
+% (B/A)
+Employees
+No. (C)
+95.97
+4,578
+4,770
+Permanent (F)
+Workers
+11.83
+1,893
+88.17
+14,106
+15,999
+Total employees (D+E)
+37.13
+460
+62.87
+779
+1,239
+Other than Permanent (E)
+192
+% (C/A)
+4.03
+5,125
+% (B/A)
+No. (B)
+Total (A)
+Particulars
+Female
+Male
+Differently abled Employees and workers:
+b.
+7.83
+775
+92.17
+9,120
+Total workers (F+G)
+11.38
+583
+88.62
+4,542
+Other than Permanent (G)
+Number of
+complaints