AstraZeneca Pharma India Ltd. — Interim / Quarterly Report 2020

Feb 3, 2020

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AstraZeneca

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February 3, 2020

• The Manager Listing

BSE Limited,

1[s1 ] Floor, New Trading Ring Rotunda Building, P J Towers, Dalal Street, Fort, Mumbai 40000 I

• The Manager Listing

National Stock Exchange of India Ltd.

Exchange plaza, 5[1] " Floor, Plot No.C/l, G Block Bandra-Kurla Complex, Bandra (E), Mumbai 400051

Dear Sir(s),

Sub: Outcome of the Board Meeting held on Monday, Februa,y 3, 2020

Ref: Scrip Code - BSE: 506820 / NSE: ASTRAZEN

At the Board meeting of the Company held on Monday, February 3, 2020 the Board of Directors considered and approved the Unaudited Financial Results of the Company for the quarter ended December 31, 2019. The said Unaudited Financial Results together with the Limited Review report of the Statutory Auditors dated February 3, 2020 are enclosed herewith.

Please take the same on record.

Thanking you,

For AstraZeneca Pharma India Limited

Pr :;¼:.: {._J.. � Company Secretary & Legal Counsel

TEL : +91 80 6774 8000 FAX : +91 80 6774 8857 CIN : L24231KA1979PLC003563 WEB : www.astrazeneca.com/india

FACTORY TEL : +91 80 6774 9000 12th Mile on Bellary Road Venkatala, l<attigenahalli Village Yelahanka FAX : +91 80 2846 2208 Bangalore - 560 063 +91 80 677 4 9628 INDIA

CORPORATE & REGO. OFFICE AstraZeneca Pharma India Ltd. P. B. No. 4525, Block N1, 12th Floor, Manyata Embassy Business Park, Rachenahalli, Outer Ring Road, Bangalore - 560 045, INDIA

AstraZeneca Pharma India Limited Regd. Office: Block N1, 12th Floor, Manyata Embassy Business Park, Rachenahalli, Outer Ring Road, Bangalore 560 045 Statement of unaudited financial results for the quarter and nine months ended 31 December 2019

					Rsin	lakhs except for earninas oer share data	lakhs except for earninas oer share data
SI No.	Particulars	3 months ended	Previous 3 months	Corresponding 3	9 months ended	9 months ended	Year ended
		31/12/2019	ended 30/09/2019	months endedin the	31/12/2019	31/12/2018	31/03/2019
				previous year 31/12/2018
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	Audited
1	Revenue
	a) Revenue from operations	22,386.28	20,848.31	21,519.40	63,690.72	53,799.16	72,829 43
	b) Other income	346.15	316.08	349.57	961.15	1,027.30	1,628.52
	Total income	22,732.43	21,164.39	21,868.97	64,651.87	54,826.46	74,457.95
2	Expenses
	(a) Cost of materials consumed	2,164.70	1,328.21	1,594.29	5,368.39	4.043.52	6,267.23
	(b) Purchase of stock-in-trade	7,675.58	6,358.21	4,156.63	18,701.43	8,892.33	16,983.88
	(c) Changes in inventories of finished goods, work-in-progress and	{1,708.52)	(270.94)	651.47	{1,518.64)	3,889.51	(137.78)
	stock-in-trade
	(d) Employee benefits expense	5,255.49	5,216.35	5,108.91	15,545.25	13,698.84	19,739.86
	(e) Depreciation and amortisation expense	477.12	464.06	378.10	1,403.91	1,100.52	1,492.41
	(f) Selling, marketing and distribution expense	1,169.65	1,401.17	1,651.37	4,269.14	5,681.82	7,980.28
	(g) Other expenses	4,153.02	3,459.35	4,268.74	10,736.58	11,100.91	14,865.72
	(h) Finance cost (refer note 2)	27.13	28.36	.	85.03	.
	Total expenses	19,214.17	17,984.77	17,809.51	54,591.09	48,407.45	67,191.60
3	Profit before exceptional and extraordinary items and tax (1-2)
		3,518.26	3,179.62	4,059.46	10,060.78	6,419.01	7,266.35
4	Exceptional items	.			.
5	Profit before extraordinary items and tax (3+4)	3,518.26	3,179.62	4,059.46	10,060.78	6,419.01	7,266.35
6	Extraordinary items			.		.
7	Profit before tax (5+6)	3,518.26	3,179.62	4,059.46	10,060.78	6,419.01	7,266.35
8	Tax expense (refer note 3)
	- Current tax	881.34	514.68	1,114.91	2,665.55	1,816.26	1,667.83
	- Deferred tax	(33.25)	1,223.41	35.37	1,132.00	141.10	154.45
	Total tax expense	848.09	1,738.09	1,150.28	3,797.55	1,957.36	1,822.28
9	Profit for the period (7-8)	2,670.17	1,441.53	2,909.18	6,263.23	4,461.65	5,444.07
10	Other comprehensive income
	A. Items that will not be reclassified to profit or loss
	Re-measurement gains/(losses) on post employment benefit
	obligations	107.26	(114,85)	(60.65)	(351.63)	139.01	(92.30)
	Income tax effect on above	(27.00)	(4,73)	21.19	88.50	(48.58)	32.25
	Total other comprehensive income/ (loss), net of income tax	80.26	(119.58)	(39.46)	(263.13)	90.43	(60.05)
	Total comprehensive income for the period (9+10)	2,750.43	1,321.95	2,869.72	6,000.10	4,552.08	5,384.02
11	Paid-up equity share capital	500.00	500.00	500.00	500.00	500.00	500.00
	(Face value of Rs 2/- per equity share)
12	Reserves (excluding revaluation reserves as per balance sheet)		.	.	.		29,580.50
13	Earnings per equity share of Rs 2/- each (basic and diluted)	10.68	5.77	11.64	25.05	17.85	21.78

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AstraZeneca Pharma India Limited

Regd. Office : Block N1, 12th Floor, Manyata Embassy Business Park, Rachenahalll, Outer Ring Road, Bangalore 560 045

Statement or unaudited financial results for the quarter and nine months ended 31 December 2019

Notes:

• t The financial resulls have been prepared in accordance with the Companies (Indian Accounling Standards) Rules. 2015 (as amended) prescribed under Section 133 of lhe Companies Act, 2013 and other recognised accounling praclices and policies lo the e,tent applicable.

• 2 Effeclive t April 2019, the Company has adopled Ind AS 116, 'Leases'. Ind AS t 16 inlroduces a single lessee accounting model and requires a lessee to recognise right-of-use assets and lease liabilities for all leases with a term of more than twelve monlhs, unless the underlying asset Is of a low value.

The Company has used lhe 'modified retrospective approach' for transition from Ind AS 17, 'Leases', and consequently, comparatives for previous periods have not been adjusted. On transition, the Company has recorded lease liability at present value of future lease payments discounted using the Incremental borrowing rate and has recognised the righl-of-use asset at an amount equal to lhe lease liability and adjusted for prepaid lease paymenls.

n1e adoption or Ind AS 116 has resulled In recognition or right-of-use assets or Rs. t,367.5I lakhs and lease liabilities or Rs. 1,330.34 lakhs with a corresponding effect of Rs. 12.98 lakhs on relained earnings on t April 2019. In the financial results for the quarter and nine monlhs ended 31 December 2019, the nature of expense for leasing arrangements has changed from lease rent in previous periods to depreciation on lhe right-of-use assets and finance cost on the corresponding lease liabilities, The adopllon of Ind AS I 16 did not have a material impact on the results for the quarter ended 31 December 2019.

• 3 Pursuant to a nolification of lhe Taxalion Laws (Amendmenl) Ordinance 2019, the Company had opted to pay lax as per Secllon 115BAA at Ille income la, rate of 22% (plus applicable surcharge and cess). Consequently, during the quarter ended 30 September 2019, the Company has recognised the Impact of remeasurement of the net deferred lax assets and U1e current tax charge.

Accordingly, the excess current tax provision relaling lo quarter ended 30 June 2019 amounting to INR 353.62 lakhs was reversed in the Unaudited Statements of Financial Resulls in the quarter ended 30 September 2019. Similarly, the excess net deferred tax assets (Including minimum allemate tax) of INR I ,246.56 lakhs was reversed in the Unaudited Statements of Financial Results in the quarter ended 30 September 2019.

• 4 The Company has identified 'Healthcare Segment' as its only reportable segment In accordance with the requirements of fnd AS 108, 'Operating Segments'. Accordingly no segment information has been provided.

• 5 As previously disclosed, by way or a letter dated t March 2014, AstraZeneca Pharmaceuticals AB, the promoter of the Company had proposed a voluntary delisting of the Company's equity shares from the National Stock Exchange and the Bombay Stock Exchange. Such proposed delisting is subject to an on-going inquiry with SEBI and that inquiry has not yet been resolved. In any event, based on the passage of time, any potential future proposal for voluntary delisting of the Company would need to be conducted de novo.

• 6 Previous period's figures have been regrouped/reclassified, where necessary, to conform with the current period's presentation for the purpose of comparability. 7 This statement of financial resulls was reviewed and recommended by the Audit Committee of the Board and subsequently approved by the Board of Directors at their respective meetings held on 3 February 2020. The Statutory Auditors of the Company have carried out a limited review of this statement of financial results for the quarter and nine months ended 3 t December 2019.

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By Order of the Board or Directors For AstraZeneca P arma India Limited

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Place: Bengaluru Date: 03 February, 2020

Price Waterhouse & Co Chartered Accountants LLP

To The Board of Directors AstraZeneca Pharma India Limited Block N1, 12th Floor, Manyata Embassy Business Park, Rachenahalli, Outer Ring Road, - Bengaluru 560 045

Independent Auditor's Repo1·t on the Statement of financial results

1. We have reviewed the unaudited financial results of AstraZeneca Pharma India Limited (the "Company") for the quarter ended December 31, 2019 and the year to date results for the period April 1, 2019 to December 31, 2019, which are included in the accompanying 'Statement of unaudited financial results for the quarter and nine months ended December 31, 2019 (the "Statement"). The Statement has been prepared by the Company pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations, 2015"), which has been initialled by us for identification purposes. This Statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Repo1ting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

2. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and peiform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

3. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Price Waterhouse & Co Chartered Accountants LLP Firm Registration Number: 304026E/E-300009

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Pradip Kanakia Partner Place: Bengaluru Membership Number: 039985 Date: February 03, 2020 UDIN: 20039985AAAABM9181

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