Biocon Ltd. — Annual Report 2019

May 24, 2019

Biocon Limited

www.biocon.com

20th KM Hosur Road Electronics City Bangalore 560 100, India T 91 80 2808 2808 F 91 80 2852 3423 CIN : L24234KA 1978PLC003417

May 24, 2019

To The Manager SSE Limited Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001

To The Manager National Stock Exchange of India Limited Corporate Communication Department Exchange Plaza, Sandra Kurla Complex Mumbai- 400 050

Scrip Code -532523

Stock Code- Biocon

Sub: Regulation 33 of SEBI (listing Obligations & Disclosure Requirements) Regulations 2015 ("SEBI LODR, 2015"), Standalone Financial Results for the year ended March 31, 2019- Updation

Dear Sir/Madam,

This is with reference to standalone financial results of the Company for the quarter and year ended March 31, 2019, uploaded in accordance with Regulation 33 of SEBI LODR, 2015, on yourwebsites on April25, 2019. The acknowledgement number are as follows:-

BSE -629735 NSE - 2019/Apr/5364/5447- Results Quick Submission

We wish to bring to your attention that there were certain typographical errors in the particulars column specifying the nature of expenses in the statement of audited standalone financial results for the quarter and year ended March 31, 2019 uploaded on your websites. However, the financial results were correctly uploaded in XBRL mode. We wish to clarify, that these do not have any impact on the results of the operations and the financial position of Biocon Limited and Biocon group (Consolidated) for the quarter and year ended March 31, 2019.

The updated information in accordance with Regulation 33 of SEBI LODR, 2015 is enclosed.

Kindly take on record the above information and acknowledge.

Thanking you,

Yours faithfully,

/ itldharth Mittal Chief Financial Officer & Compliance Officer

Enclosed: Financial results (consolidated & standalone)

8 S R & Co. LLP

Chartered Accountants

Maruthi Info-Tech Centre 11-12/1, B Block, 2nd Floor Inner Ring Road, Koramangala Bangalore 560 071 India

Telephone +91 80 7134 7000 Fax +91 80 7134 7999

Auditor's report on Quarterly and Annual Standalone Financial Results of Biocon Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To

The Board of Directors of Biocon Limited

We have audited the accompanying Statement of annual standalone financial results ("Statement" ) of Biocon Limited ('the Company') for the year ended 31 March 2019, attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the Securities and Exchange Board oflndia (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'). Attention is drawn to the fact that the figures for the last quarter ended 31 March 2019 and the corresponding quarter ended in the previous year as reported in the Statement are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the end of the third quarter of the relevant financial year. Also the figures up to the end of the third quarter had only been reviewed and not subjected to audit.

The Statement has been prepared on the basis of the annual Standalone financial statements of the cmTent year and reviewed standalone quarterly financial results upto the end of third quarter, which are the responsibility of Company's Management. Our responsibility is to express an opinion on the Statement based on our audit of the standalone annual financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in the Companies (Indian Accounting Standards) Rules, 2015, as per Section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Statement is free from material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by the Management. We believe that our audit provides a reasonable basis for our opinion.

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

• (i) is presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and
• (ii) gives a true and fair view of the net profit and other comprehensive income and other financial information for the year ended 31 March 2019.

forB S R & Co. LLP Chartered Accountants Finn Registration Number: 101248W/W-100022

Partner Membership Number: 203491

Place: Bengaluru Date: 25 April 2019

B S R & Co. (a partnership firm with Registratior No. BA61223) converted into B S R & Co. LLP (a Limited Liability Partnership with LLP Registration No. AAB-8181) with effect from October 14. 2013

Registered Olflce: 5th Floor. Lodha Excelus Apollo Mills Compound N M Joshi Marg, Mahalakshmi Mumbai 400 011

B S R & Co. LLP

Chartered Accountants

Maruthi Info-Tech Centre 11 -12/1, B Block, 2nd Floor Inner Ring Road, Koramangala Bangalore 560 071 India

Telephone +91 80 7134 7000 Fax +91 80 7134 7999

Auditor's Report on Quarterly and Annual Consolidated Financial Results of Biocon Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To

The Board of Directors ofBiocon Limited

We have audited the accompanying Statement of annual consolidated financial results ('Statement') of Biocon Limited ('the Company'), its subsidiaries (collectively referred to as 'the Group'), its associates and a joint venture (Refer note 3 of the Statement), for the year ended 31 March 2019, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI Regulation'). Attention is drawn to the fact that the figures for last quarter ended 31 March 2019 and the corresponding quarter ended in the previous year as reported in the Statement are the balancing figures between consolidated audited figures in respect of the full financial year and the published unaudited year to date consolidated figures up to the end of third quarter of the relevant financial year. Also the figures upto the end of the third quarter have only been reviewed and not subjected to audit.

The Statement has been prepared on the basis of the annual consolidated financial statements and reviewed quarterly consolidated financial results upto the third quarter, which are the responsibility of the Company's Management. Our responsibility is to express an opinion on the Statement based on our audit of such annual consolidated financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in the Companies (Indian Accounting Standards) Rules, 201 5, as per Section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India and in Compliance with the requirements of Regulation 33 of the Listing Regulations.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial results are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by the Management. We believe that our audit provides a reasonable basis for our opinion.

We did not audit the financial statements/ financial information of a subsidiary and a joint venture both incorporated outside India included in the Statement. This subsidiary accounts for Rs 866 million and Rs 3,029 million of revenues (including other income) for the quarter and year ended 31 March 2019 respectively and Rs 25,353 million of total assets as at 31 March 2019. The Statement also include the Group's share of net loss of Rs 112 million and net profit of Rs 9 million for the quarter and year ended 31 March 2019, in respect of the joint venture. The financial statements/ financial information of the subsidiary and joint venture both incorporated outside India have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Company's Management has converted the financial statements/ financial information of the subsidiary and a joint venture both incorporated outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments, if any made by the Company's Management. Our opinion in so far as it relates to the balances and affairs of such subsidiary and joint venture both incorporated outside India is based on the reports of other auditors and the conversion adjustments, if any prepared by the Management of the Company and audited by us.

B S R & Co. (a partnership firm w ith Registration No. BA61 223J converted into B S R & Co. LLP (a Limited Liability Partnership with LLP Registration No. M B-81811 with effect from October 14. 201 3

Registered Office: 5th Floor, Lodha Exce!us Apollo Mills Compound N M Joshi Marg, Mahalakshmi Mumbai 400 011

Auditor's Report on Quarterly and Annual Consolidated Financial Results ofBiocon Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (continued)

In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on separate financial statements of a Subsidiary and a Joint venture, the Statement:

• i. includes the annual financial results of the entities listed in note 3 of the Statement;
• ii. has been presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and
• 111. gives a true and fair view of the net consolidated profit and other comprehensive income and other financial information for the year ended 31 March 2019.

forB S R & Co. LLP Chartered Accountants Firm Registration Number: 101248W/W-100022

S Sethuraman Partner Membership Number: 203491

Place: Bengaluru Date: 25 April 2019

BIOCON LIMITED CIN: l24234KA1978PLC003417 Website: www.biocon.com Registered office: 20th KM HOSUR ROAD, ELECTRONIC CITY P.O., BANGALORE - 560100

STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2019

	(Rs. in Million, except per equity share data)
				3 months ended 3 months ended 3 months ended	Year	Previous Year
		31.03.2019	31.12.2018	31.03.2018	ended	ended
51. No.	Particulars				31.03.2019	31.03.2018
		(Audited refer		(Audited refer
		note9)	(Unaudited)	note 9)	(Audited)	(Audited)
1	Income
	Revenue from operations	7,639	7,397	6,481	28,847	24,255
	Other income Total income	139 7,778	351 7,748	312 6,793	1,175 30,022	1,247
						25,502
2	Expenses
	a) Cost of raw materials and packing materials consumed	3,637	3,298	2,635	12,785	9,587
	b) Purchases of traded goods	195	345	302	1,254	925
	c) Changes in inventori es of finished goods, work-in-progress and stock-in-trade	(589)	(513)	(113)	(1,471)	(18)
	d) Excise duty	-	-		-	63
	e) Employee benefits expense	1,395	1,301	1,118	5,103	4,086
	f) Finance costs	6	8	(2)	26	10
	g) Depreciation and amortisation expenses	375	377	323	1,471	1,361
	h) Other expenses	2,031	2,141	1,670	7,441	6,479
		7,050	6,957	5,933	26,609	22,493
	Less: Recovery of cost from co-development partners {net) Total expenses	{15) 7,035	(29) 6,928	{6) 5,927	(121) 26,488	{49) 22,444
3	Profit before tax and exceptional item (1-2)	743	820	866	3,534	3,058
4	Exceptional items [refer note 7 below]	-			1,987
5	Profit before tax (3 + 4)	743	820	866	5,521	3,058
6	Tax expense	38	93	147	594	673
7	Profit for the period/year {5 - 6)	705	727	719	4,927	2,385
8	Other comprehensive income
	A (i) Items that wi ll not be reclassified to profit or loss	(26)	(87)	9	42	(11)
	(ii) Income tax relating to items that will not be reclassified to profit or loss	(10)	21	4	93	4
	B (i) Items that will be reclassified to profit or loss	32	106	(60)	{7)	{89)
	{ii) Income tax relating to items that will be reclassified to profit or loss	{8)	(39)	21	3	31
	Other comprehensive income, net of taxes	{12)	1	(26)	131	{65)
9	Total comprehensive income for the period/year {7+8)	693	728	693	5,058	2,320
10	Paid-up equity share capital (Face value of Rs. 5 each)	3,000	3,000	3,000	3,000	3,000
11	Reserves i.e. Other equity				68,154	64,386
12	Earnings per share {of Rs. 5 each)			(not ann ualised) {not annualised) (not annualised)	{annualised)	(annualised)
	(a) Basic	1.19	1.23	1.22	8.33	4.04
	(b) Diluted	1.18	1.22	1.21	8.27	4.02
	See accompanying notes to the financial results

BIOCON LIMITED Standalone Balance Sheet

(Rs. in Million)

		As at March 31, 2019 (Audited)	As at March 31, 2018 (Audited)
A	ASSETS
	1 Non-current assets
	(a) Property, plant and equipment	10,291	8,341
	(b) Capital work-in-progress	2,545	3,185
	(c) Investment property	419	438
	(d) Intangible assets	301	247
	(e) Financial assets
	Investments	39,028	37,452
	Loans	1,066	2,817
	Other financial assets	228	379
	(g) Income tax asset, net	660	648
	(h) Deferred tax asset, net	2,019	1,022
	(i) Other non-current assets	1,383	2,163
	Total non-current assets	57,940	56,692
	2 Current assets
	(a) Inventories	8,019	5,617
	(b) Financial assets
	Investments	1,134	4,538
	Trade receivables	9,018	7,399
	Cash and cash equivalents	3,057	891
	Other bank balances	503	1,078
	Loans	918
	Other financial assets	1,228	759
	(c) Other current assets	587	295
	Total current assets	24,464	20,577
	TOTAL- ASSETS	82,404	77,269
B	EQUITY AND LIABILITIES
	1 Equity
	(a) Equity share capital	3,000	3,000
	(b) Other equity	68,154	64,386
	Total Equity	71,154	67,386
	2 Non-current liabilities
	(a) Financial liabi lities
	Borrowings	14	672
	Other financial liabilities		7
	(b) Provisions	248	172
	(c) Other non-current liabilities	1,055	716
	Total non-current liabilities	1,317	1,567
	3 Current liabilities
	(a) Financial liabilities
	Trade payables
	-Total outstanding dues of micro and small enterprises	154	173
	-Total outstanding dues of creditors other than micro and small	6,285	5,624
	enterprises
	Other financial liabilities	1,771	1,130
	(b) Provisions	548	316
	(c) Income tax liability, net	803	740
	(d) Other current liabilities	372	333
	Total current liabilities	9,933	8,316
		82,404	77,269
		~

BIOCON LIMITED CIN: LZ4234KA1978PLC003417 Website: www.biocon.com Registered office: 20th KM HOSUR ROAD, ELECTRONIC CITY P.O., BANGALORE- 560 100

STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2019

	(Rs. in Million, except per equity share data)
SI.No.	Particulars		3 months ended 3 months ended 3 months ended		Year	Previous Year
		31.03.2019	31.12.2018	31.03.2018	ended	ended
					31.03.2019	31.03.2018
		(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)
		(Refer note 9)		(Refer note 9)
1	Income
	Revenue from operations	15,288	15,408	11,695	55,144	41,297
	Other income	282	256	675	1,444	2,062
	Total income	15,570	15,664	12,370	56,588	43,359
2	Expenses
	a) Cost of raw materials and packing materials consumed	5,475	5,540	4,239	19,795	14,450
	b) Purchases of traded goods	195	359	409	1,268	2,328
	c) Changes in inventories of finished goods, work·in·progress and	(791)	(618)	104	(2,097)	(417)
	stock-in-trade
	d) Excise duty	-	-	- 2,570	- 11,653	63
	e) Employee benefits expense f) Finance costs	3,206 159	2,944 186	169	709	9,311 615
	g) Depreciation and amortisation expenses	1,198	1,167	953	4,478	3,851
	h) Other expenses	3,804	3,992	2,396	13,287	9,018
		13,246	13,570	10,840	49,093	39,219
	Less: Recovery of cost from co-development partners (net)	(631)	(616)	(353)	(2,699)	(1,747)
	Total expenses	12,615	12,954	10,487	46,394	37,472
	Profit before share of profit of joint venture and associates, exceptional Items
3	and tax (1-2)	2,955	2,710	1,883	10,194	5,887
4	Share of profit I (loss) of joint venture and associates, net	(112)	125	51	9	213
5	Profit before tax and exceptional items (3+4)	2,843	2,835	1,934	10,203	6,100
6	Exceptional items (net) [refer note 4 and 5 below]	-	58	-	1,946	-
7	Profit before tax (5+6)	2,843	2,893	1,934	12,149	6,100
8	Tax expense	409	461	407	2,123	1,569
9	Profit for the period I year before non-controlling interest (7-8)	2,434	2,432	1,527	10,026	4,531
10	Non-controlling Interest	(297)	(260)	(223)	(973)	(807)
11	Profit for the period I year (9+10)	2,137	2,172	1,304	9,053	3,724
12	Other comprehensive income
	A (i) Items that will not be reclassified to profit or loss	(48)	(666)	23	{605)	(19)
	(ii) Income tax relating to items that will not be reclassified to profit or loss	(9)	79	3	160	6
	B (i) Items that will be reclassified to profit or loss	684	1,490	(383)	(432)	166
	(ii) Income tax relating to items that will be reclassified to profit or loss	(226)	(449)	114	153	-
	Total other comprehensive income, net of tax	401	454	(243)	(724)	153
13	Non-controlling Interest	(168)	(413)	95	172	(23)
14	Other comprehensive income attributable to Shareholders (12+13)	233	41	(1481	(552)	130
	Total comprehensive income attributable to:
	Shareholders of the Company	2,370	2,213	1,156	8,501	3,854
	Non-controlling interest	465	673	128	801	830
15	Total comprehensive income Paid-up equity share capital (Face value of Rs. 5 each)	2,835 3,000	2,886 3,000	1,284 3,000	9,302 3,000	4,684 3,000
16	Reserves i.e. Other equity				57,980	48,808
17	Earnings per share (of Rs. 5 each)		(not annualised) (not annualised) (not annualised)		(annualised)	(annualised)
	(a) Basic	3.61	3.67	2.21	15.30	6.31
	(b) Diluted	3.58	3.64	2.19	15.20	6.27
	See accompanying notes to the financial results

BIOCON LIMITED

CIN: U4234KA1978PLC003417 Website: www.biocon.com

Registered office: 20TH KM HOSUR ROAD, ELECTRONIC CITY P.O., BANGALORE- 560 100 SEGMENT DETAILS OF AUDITED CONSOLIDATED RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2019

					(Rs. in Million)
	3 months	3 months	3 months	Year	Previous Year
Particulars	ended	ended	ended	ended	ended
	31.03.2019	31.12.2018	31.03.2018	31.03.2019	31.03.2018
	(Audited)		(Audited)
	(Refer note 9)	(Unaudited)	(Refer note 9)	(Audited)	(Audited)
Segment revenue
a. Small molecules	4,719	4,689	4,255	17,728	15,077
b. Biologics	4,511	4,486	2,408	15,169	7,702
Branded formulations c.	1,330	2,122	1,491	6,564	6,115
Research services d.	5,339	4,671	4,091	18,256	14,231
Total	15,899	15,968	12,245	57,717	43,125
Less: Inter-segment revenue	(611)	(560)	(550)	(2,573)	(1,828)
Net sales /Income from continuing operations	15,288	15,408	11,695	55,144	41,297
Segment results
Profit before interest and tax from each segment
a. Small molecules	681	976	852	3,254	2,843
b. Biologics#	1,469	1,331	194	3,977	(119)
Branded formulations# c.	48	274	123	621	428
d. Research services	1,287	1,068	1,044	4,154	3,725
Total	3,48S	3,649	2,213	12,006	6,877
Less: Interest	82	104	98	388	388
Other un-allocable expenditure I (income), net	560	710	181	1,415	389
Profit before tax and before exceptional items#	2,843	2,835	1,934	10,203	6,100
Segment assets
a. Small molecules	20,068	19,573	17,681	20,068	17,681
b. Biologics	47,601	45,845	36,038	47,601	36,038
c. Branded formulations	3,178	3,656	2,927	3,178	2,927
d. Research services	37,035	33,998	31,890	37,035	31,890
	1,07,882	1,03,072	88,536	1,07,882	88,536
Unallocable e.	14,042	13,159	11,361	14,042	11,361
Total segment assets	1,21,924	1,16,231	99,897	1,21,924	99,897
Segment liabilities
Small molecules a.	4,965	4,685	4,320	4,965	4,320
Biologics b.	12,152	10,282	7,704	12,152	7,704
Branded formulations c. d. Research services	2,416 17,351	2,692 15,893	1,872 14,686	2,416 17,351	1,872 14,686
	36,884	33,552	28,582	36,884	28,582
e. Unallocable	17,971	17,876	14,830	17,971	14,830
Total segment liabilities	54,855	51,428	43,412	54,855	43,412
Capital employed
a. Small molecules	15,103	14,888	13,361	15,103	13,361
b. Biologics	35,449	35,563	28,334	35,449	28,334
Branded formulations c.	762	964	1,055	762	1,055
d. Research services	19,684	18,105	17,204	19,684	17,204
	70,998	69,520	59,954	70,998	59,954
e. Unallocable	(3,929)	(4,717)	(3,469)	(3,929)	(3,469)
Total capital employed	67,069	64,803	56,485	67,069	56,485
#includes share of profit/loss of joint venture and
associates

BIOCON LIMITED Consolidated Balance Sheet

(Rs. in Million)

	As at March 31, Z019 (Audited)	As at March 31, Z018 (Audited)
A ASSETS
1 Non-current assets
(a) Property, plant and equipment	42,527	36,297
(b) Capital work-in-progress	12,869	7,789
(c) Goodwill (d) Other intangible assets	264	264
(e) Intangible assets under development	1,919 6,120	434 5,239
(f) Investments in associates and a joint venture	431	638
(g) Financial assets
Investments	1,394
Derivative assets	710	1,109
Other financial assets	391	248
(h) Income tax asset, net (i) Deferred tax asset, net	1,693 3,247	1,273 1,934
Ul Other non-current assets	2,131	3,186
Non-current assets	73,696	58,411
Z Current assets
(a) Inventories (b) Financial assets	10,316	7,225
Investments	8,293	6,114
Trade receivables	12,918	10,639
Cash and cash equivalents	7,298	5,012
Other bank balances	3,274	8,216
Derivative assets	775	995
Other financial assets (c) Other current assets	3,866 1,488	1,915 1,370
Current assets	48,ZZ8	41,486
TOTAL- ASSETS	1,Z1,9Z4	99,897
B EQUITY AND LIABILITIES 1 Equity
(a) Equity share capital	3,000	3,000
(b) Other equity	57,980	48,808
Equity attributable to owners of the Company	60,980	51,808
Non-controlling interests	6,089	4,677
Total Equity	67,069	56,485
Z Non-current liabilities
(a) Financial liabilities
Borrowings	15,416	17,898
Derivat ive liability Other financial liabilities	350	183 2
(b) Provisions	661	493
(c) Other non-current liabilities	8,052	3,423
Non-current liabilities	Z4,479	Z1,999
3 Current liabilities
(a) Financial liabilities
Borrowings	2,612	1,303
Trade payables -total outstanding dues of micro and small enterprises	296	214
-total outstanding dues of creditors other than micro and small.enterprises	11,687	9,839
Derivative liability	141	62
Other financial liabilities	9,906	5,563
(b) Provisions	805	465
(c) Income tax liability, net	1,238	891
(d) Other current liabilities	3,691	3,076
Current liabilities	30,376	Z1,413
TOTAL- EQUITY AND LIABILITIES	1,Z1,9Z4	99,897
	~

Biocon limited Audited financial results for the quarter and year ended March 31, 2019

Notes:

• 1. The audited standalone and consolidated financial results for the quarter and year ended March 31, 2019 in respect of Biocon Limited ('the Company') have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on April 25, 2019. The above results have been audited by the statutory auditors of the Company. The reports of the statutory auditors are unqualified.
• 1. These financial results have been prepared in accordance with Indian Accounting Standards ('lnd AS') prescribed under Section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• 1. The consolidated financial results include the financial results of the parent company Biocon Limited and the financial results of the following subsidiaries:
• Syngene International Limited ('Syngene')
• Biocon Research Limited ("BRL")
• Biocon Pharma Limited
• Biocon Academy
• Biocon SA
• Biocon SDN. BHD
• Biocon FZ LLC
• Biocon Biologics Limited
• Biocon Pharma Inc .
• Biocon Biologics India Limited ("BBIL")
• Biocon Healthcare SDN. BHD
• Bicara Therapeutics Inc.
• Biocon Pharma Ireland Limited
• Biocon Pharma UK Limited
• Syngene USA Inc .

Biocon Limited and its subsidiaries are collectively referred to as 'the Group'. In addition to the above, the consolidated financial results also include the financial results in respect of Biocon India Limited Employee Welfare Trust and Syngene Employees Welfare Trust. The Company has also accounted for its share of interest in the joint venture i.e. NeoBiocon FZ-LLC and share of investment in the associates i.e. latrica Inc. and Equillium Inc., (also refer note 5) if any under the equity method.

1. Pursuant to a fire incident on December 12, 2016 at Syngene, certain fixed assets, inventory and other contents in one of the buildings were damaged. Syngene lodged an estimate of loss with the insurance company and the survey is currently ongoing. Syngene had recorded a loss of Rs. 1,032 million arising from such incident till March 31, 2018. Syngene has recorded a further loss of Rs. 23 million during the year ended March 31, 2019. Syngene also recognised a minimum Insurance claim receivable for equivalent amounts in the respective periods. The aforementioned loss and the corresponding credit arising from insurance claim receivable has been presented on a net basis (Rs. Nil) under Exceptional items in these financial results.

Biocon limited

Audited financial results for the quarter and year ended March 31, 2019

• 1. During the year ended March 31, 2018, the Group, had accounted for its 19.5% equity investment in Equillium Inc. as an associate. During the quarter ended September 30, 2018, Equillium initiated its initial public offering (IPO) process and consequently had changes in its Board composition, which resulted in loss of significant influence over the investee. In accordance with lnd AS 28: Investments in Associates and Joint Ventures, the Company fair valued its investment on the date of loss of significant influence and the anti-dilutive rights on the date of IPO which resulted in a gain of Rs 55 million and Rs. 1,762 million, net of tax expenses of Rs 3 million and Rs. 184 million for the quarter ended December 31, 2018 and year ended March 31, 2019 respectively, which has been disclosed as an Exceptional item in these financial results. The Group, going forward has designated its investment in equity of Equillium to be accounted for at Fair value through other comprehensive income (FVOCI). Equillium completed its IPO and listed on NASDAQ on October 12, 2018.
• 1. Segment Reporting in Consolidated financial results: Based on the "management approach" as defined in lnd AS 108-0perating Segments, the Chief Operating Decision Marker evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments. The accounting principles used in the preparation of these financial results are consistently applied to record revenue and expenditure in individual segments.
• 1. During the year ended March 31, 2019, the Company along with its subsidiary BRL sold 6,597,130 equity shares of Rs. 10 each of Syngene in the open market. Post the sale, the Company and its subsidiary's holding in equity shares ofSyngene has reduced to 70.24%. Gain arising from such sale of equity shares, net of related expense and cost of equity shares amounting toRs. 1,987 has been recorded as exceptional item in the standalone financial results for the year ended March 31, 2019.

The gain arising from such sale of equity shares, net of related expenses and cost of equity shares, for the year ended March 31, 2019 has been accounted in equity reserves in the consolidated financial results for the year ended March 31, 2019, as there is no loss of control.

1. Pursuant to the requirements of lnd AS 115: Revenues from Contracts with Customers, the Group evaluated its open arrangements on out-licensing with reference to upfront non-refundable fees received in earlier periods and concluded that some of the performance obligations may not be distinct and hence would need to be bundled with the subsequent product supply obligations.

Accordingly, the Group has recognised an incremental deferred revenue relating to such open contracts. The adoption of this standard and the consequential impact on change in some of the licensing arrangements did not have a material impact on the Revenue from Operations and results for the quarter and year ended March 31, 2019. The cumulative effect of transition recorded as of April 1, 2018 on retained earnings is Rs. 1,606 with the corresponding effect on deferred revenue and deferred tax asset amounting toRs. 1,877 and Rs. 271 respectively. Comparative periods were not restated given the Group adopted the standard using the cumulative effect approach.

1. The figures for the quarters ended March 31, 2019 and March 31, 2018 are the balancing figures between audited figures in respect to full financial years and the published unaudited year to date figures upto the end of the third quarter of the relevant financial year, which are subjected to limited review.

Biocon limited

Audited financial results for the quarter and year ended March 31, 2019

1. Events after reporting period

On April 25, 2019, the Board of Directors of the Company approved issue of bonus shares in the proportion of 1:1 i.e. 1 (one) bonus equity shares of Rs 5 each for every 1 (one) fully paid-up equity shares held as on record date, subject to approval by the shareholders of the Company through postal ballot.

On April 25, 2019, the Board of Directors ofthe Company has proposed a final dividend of Re 1 per equity share on a pre-bonus share basis. The proposed dividend is subject to the approval of the shareholders in the Annual General Meeting.

1. Prior period/ year figures have been reclassified wherever required to conform to the classification of the current period/ year.

Kiran Mazumdar Shaw Chairman and Managing Director

Bangalore, April 25, 2019