Biocon Ltd. — Audit Report / Information 2025

Jun 16, 2025

Biocon Limited 20th KM, Hosur Road Electronic City Bangalore 560 100, India T 91 80 2808 2808 F 91 80 2852 3423

CIN : L24234KA1978PLC003417

www.biocon.com

BIO/SECL/EA/2025-26/40

June 16, 2025

To	To
The Manager,	The Manager,
BSE Limited	National Stock Exchange of India Limited
Department of Corporate Services	Corporate Communication Department
Phiroze Jeejeebhoy Towers,	Exchange Plaza, Bandra Kurla Complex
Dalal Street, Mumbai – 400 001	Mumbai – 400 050
Scrip Code - 532523	Scrip Symbol - BIOCON

Dear Sir/ Madam,

Subject: Intimation of the approval of the audited consolidated financial statements for the financial year ended March 31, 2025.

Re: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI Listing Regulations').

We wish to inform you that the Board of Directors of the Company at its meeting held on Thursday, May 08, 2025 has approved the audited consolidated financial statements read with the notes and schedules thereto, along with the audit report thereon for the financial year ended March 31, 2025, prepared in accordance with the requirements of the Companies Act, 2013 and Indian Accounting Standards (Ind-AS). A copy of the audited consolidated financial statements of the Company along with the audit report are enclosed herewith.

Please note that the audited consolidated financial statements read with the notes and schedules thereto, along with the audit report thereon for the financial year ended March 31, 2025, remain subject to approval of the shareholders' at the ensuing Annual General Meeting of the Company scheduled to be held on August 08, 2025.

We request you to take the above on record and the same be treated as compliance under Regulation 30 and the other applicable provisions of the SEBI Listing Regulations.

The above information will also be available on the website of the Company at www.biocon.com.

Kindly take the same on record and acknowledge.

Thanking You,

Yours faithfully,

For Biocon Limited

H MITTAL Digitally signed by SIDDHARTH MITTAL Date: 2025.06.16 09:33:13 +05'30'

_________________ Siddharth Mittal Managing Director & CEO DIN: 03230757 Encl. as above SIDDHART

BS R & Co. LLP

Chartered Accountants

Embassy Golf Links Business Park Pebble Beach, B Block, 3rd Floor No. 13/2, off Intermediate Ring Road Bengaluru - 560 071 , India Telephone: +91 80 4682 3000 Fax: +91 80 4682 3999

lndeoendent Auditors Reoort

To the Members of Biocon Limited

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Biocon Limited (hereinafter referred to as the "Holding Company") its employee welfare trusts and its subsidiaries (Holding Company, its employee welfare trusts and its subsidiaries together referred to as "the Group"), its associate and its joint venture, which comprise the consolidated balance sheet as at 31 March 2025, and the consolidated statement of profit and loss (including other comprehensive income), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policies and other explanatory information (hereinafter referred to as "the consolidated financial statements").

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of report of the other auditor on separate financial statements/financial information of such subsidiary as were audited by the other auditor, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 ("Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its associate and joint venture as at 31 March 2025, of its consolidated profit and other comprehensive income, consolidated changes in equity and consolidated cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditors Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group, its associate and joint venture in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in terms of the Code of Ethics issued by the Institute of Chartered Accountants of India and the relevant provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence obtained by us along with the consideration of reports of the other auditor referred to in paragraph (a) of the "Other Matters" section below, is sufficient and appropriate to provide a basis for our opinion on the consolidated financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

B S R & Co (a partnership finn 1Mth Reg1slrat1on No BA6 1223) converted into B S R & Co LLP (a 14th Floor, Cenlral 8 Wing and North C Wing, Nesco IT Park 4, Nesco Limited L1ab1hly Partnership with LLP Registraltan No AA8·8181) with effect from October 14. 201 3 Center, Western Express Highway, Goregaon (East), Mumbai - 400063

Registered Office_

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Biocon Limited

See Note 2(1) and Note 21 to consolidated financial statements The key audit matter How the matter was addressed in our audit One of the subsidiaries of the Group derives Our audit procedures in relation to revenue from contract research, development recognition includes the following: and manufacturing activities. • subsidiary's revenue recognition Overstatement of revenue is a presumed fraud risk considering the subsidiary has pressure to policies terms in meet external market expectations of reporting standards. higher revenues. The subsidiary has various contractual operating effectiveness of the arrangements with customers which are entered into at various stages of research and development. The Company, in line with Ind AS controls. 115, recognises revenue based on the We have performed substantive contractual terms and performance obligations with customers. samples of revenue transactions The subsidiary, in certain instances, also has documents, which includes bill and hold arrangements that meet the invoices/contracts, shipping and criteria mentioned for such arrangements documents. under Ind AS 115: Revenue from Contracts with Customers, wherein revenues are recognized prior to the physical transfer of the goods on the basis of specific requests from of control relating to the bill and the customers to hold back the delivery of goods at period end. The above factors result in revenue from contract research and manufacturing service Customers. income being identified as a Key Audit Matter.	Revenue
already covered by our audit testing.		revenue We have assessed the appropriateness of the accounting policies and assessed compliance with the of applicable accounting We tested the design and implementation, subsidiary's controls around revenue recognition including general IT controls and key IT application testing (including year-end cut-off testing) by selecting recorded during the year and verifying the underlying sales delivery We have tested the specific requests from customers at the period end to evaluate transfer hold arrangements. We evaluated the timing of recognition of revenue from these arrangements proposed by the subsidiary for compliance with Ind AS 115: Revenue from Contracts with We have assessed manual journal entries posted to revenue to identify unusual items not

The key audit matter	How the matter was addressed in our audit
A significant part of the Group's sales consists of chargeback, rebates, returns, other adjustments and their related accruals	Our audit procedures in relation to the charge-back / deductions included the following:

PFIOA ? nf 1 fi

Biocon Limited

(referred to as 'deductions to gross sales'). Estimating the amounts of deductions to be accrued as at the period end requires significant estimation and degree of subjectivity as management's model utilizes historical buying patterns of distributors/ whole- • sellers/other customers, estimated end-user demand, estimated inventory levels in the distribution channel, contracted sales terms with customers, as well as other competitive factors. The Group has engaged professional service providers to assist them in determining the year-end accruals in respect of its biosimilar business.

This was an area of focus in our audit due to the significant value of the arrangements, their inherent complexity, and the substantial judgement and estimation required by the Group in computing accruals. Accordingly, we have determined this as a Key Audit Matter.

• Assessed the appropriateness of the Group's accounting policies and assessed compliance with the policies in terms of applicable accounting standards.
• Assessed journal entries posted in respect of these deductions to identify unusual items not already covered by our audit testing.
• Tested the design and implementation of Group's controls around accruals for deductions.
• Obtained the computation for year-end accruals of chargebacks/ deductions which were determined by the Group in respect of its biosimilar business and tested the underlying assumptions used by reference to the Group's stated commercial policies, applicable contracts and historical product returns and other claims / allowances.
• Performed test of details on the actual claims processed during the year towards chargebacks, rebates, sales return and other allowances etc. to determine the accuracy of deductions to gross sales.
• Compared prior period accruals to subsequent claims processed to evaluate management's ability to forecast year end accruals for deductions to gross sales.
• Performed analytical procedures on deductions to sales adjustments recognised during the year to identify any unusual variances/ relationships.
• For each of the estimated accruals, tested the mathematical accuracy of the computation and verified the underlying data used for completeness and accuracy.

Impairment of goodwill, intangible assets and intangible assets under development

See Note 2(e), 4 and 43 to consolidated financial statements

The key audit matter	How the matter was addressed in our audit
The Group's subsidiaries has recorded goodwill, intangible assets and intangible assets under development of Rs. 167,593 million, Rs. 57,590 million and Rs. 43,119	Our audit procedures in relation to impairment testing includes the following: We have tested the design and operating effectiveness of the subsidiary's controls around

Biocon Limited

million respectively as at 31 March 2025. Most of these were recorded pursuant to the purchase price allocation in respect of the acquisition of Viatris's biosimilar business in the previous years. Further, in some cases, the products are yet to be launched or in their initial stages of commercialization and hence revenue and profitability are yet to reach its desired levels. Hence, there is a risk of impairment in the event the carrying amount of the CGU is lower than its recoverable value. These assets are subjected to impairment test • as part of Cash Generating Units (CGU) which include goodwill. The annual impairment testing of goodwill, intangible assets and intangible assets under development within such CGU was considered to be a key audit matter due to the complexity of the accounting requirements and the significant judgement involved to estimate the recoverable amount. The recoverable amount of the CGU, which is the value in use has been derived from • discounted forecast cash flow model. The discounted cash flow model involves a high degree of subjectivity, including key assumptions like the estimates of revenue growth, weighted-average cost of capital, expected market share, price erosion, expected regulatory approval and its consequential impact on the gross margin of the products sold. This assessment of discount rate and terminal growth rate requires specialized skills and knowledge. These significant assumptions are forward looking and could be affected by future economic and market conditions. Further, changes to these assumptions could have a significant impact on the recoverable amount of the CGUs and could lead to an impairment to the carrying value of these assets.

Accordingly, we have determined this to be a key Audit Matter.

the impairment testing which included review of significant assumptions such as estimated revenue, inputs given to the Company's specialist and validating the outputs shared by the specialist.

• Evaluated all the assumptions used by the subsidiary in assessing the recoverability of assets and involved valuation specialists to assist us in evaluating the valuation methodologies.
• Evaluated the subsidiary's assessment of key inputs by considering third party sources and the impact on future cash inflows due to actions by competitors or changes in relevant market conditions;
• We corroborated the revenue projections with the annual board approved plan and the reasonableness of the revenue growth factored in the projections.
• Performed the sensitivity analysis in respect of certain key assumptions to evaluate the impact of change on recoverable value. We have assessed the historical accuracy by comparing past forecasts to actual results achieved.
• Tested the adequacy of disclosures made in consolidated financial statements, as required by Ind AS 36 Impairment of assets.

	Going concern

See Note 1.2 to consolidated financial statements
The key audit matter	How the matter was addressed in our audit
In respect of agreements entered into by the	Our audit procedures to assess the going concern

Biocon Limited

Group with certain financial investors for assumption included the following: acquisition of biosimilar business, there are put option obligations on the Company to provide exit to the investors. The Company also has certain long-term borrowings that carry drag along rights which require the Company to • repay the debts if the put options, as mentioned above, are triggered. As at 31 March 2025, these contractual agreements indicate possible obligations as described in note 1.2 to the financial statements.

The Group has performed an assessment of its financial position as at 31 March 2025 and the forecasts for a period of fifteen months from the date of these financial statements. In addition, Group considered projected cash flows, refinancing of existing borrowings, liquidity from non-current assets, ability to raise funds by • issuance of further shares as stated in note 48(d) to the consolidated financial statements and re-negotiating the exit terms with financial investors.

These factors involve subjectivity that some of these are driven by external environment and hence outcomes could be different from those factored by the Group. Considering significance of the issue it is considered as a Key Audit Matter.

• Obtained the forecasted statement of profit and loss and cashflows prepared by the Management for the next 15 months.
• Gained an understanding and assessed the design, implementation and operating effectiveness of Company and subsidiary's key internal controls over preparation of cash flow forecasts to assess its liquidity.
• Compared the forecasted statement of profit and loss and cash flows with the business plan approved by the board of directors; evaluated the key assumptions in the cash flow forecasts with reference to historical information, current performance, future plans, and market and other external available information.
• Performed sensitivity analysis on the forecasted statement of profit and loss and cash flows by considering plausible changes to the key assumptions.
• Reviewed the share purchase agreement with investors.
• Discussed with Audit Committee and key senior management personnel regarding the Company's plan to meet the obligations.
• Assessed the adequacy of the disclosures refer note 1.2 to the financial statements.

Financial instruments

See Note 16(a) to consolidated financial statements

The key audit matter

How the matter was addressed in our audit

The Group is a party to certain financial instn ImAnts thr1t n~P r.nrriPrl r1t fnir 11r1lr IP through profit and loss. These financial instruments primarily pertain to the contingent consideration payable, which the Group had accounted for in connection with the acquisition of biosimilar business in previous years, as well as certain debentures issued by the Group. Fair valuation of these financial instruments involve application of complex pricing models

We have performed the following audit procedures in rPlntinn tn thP finr1nr.ir1I inc;;tn 1mPnts· • Read the underlying agreements for these financial instruments to understand the terms of these instruments and tested the key contractual inputs. • Tested the design and operating effectiveness of the Group's control around the valuation of these financial instruments.

Biocon Limited

which involves high degree of subjectivity, including key assumptions such as probability of various outcomes related to the instruments regarding factors that are contractually agreed with the counterparties. As of 31 March 2025, the Group had Rs. 8,970 million in derivative liabilities arising on account of contingent consideration. The fair valuation of these financial instruments is categorized as 'Level 3' fair value measurement in the fair value hierarchy due to the significant unobservable inputs used in determining the fair value and the use of management judgment about the assumptions market participants would use in pricing the financial instruments.

The Group engaged third party valuation experts (management's expert) to assist in determining the fair value of the financial instruments as described above.

The valuation of these financial instruments are complex and requires significant judgment due to the use of complex pricing models and the high degree of subjectivity in evaluating certain assumptions required to estimate the fair value of these financial instruments. Accordingly, we have determined this to be a Key Audit Matter.

• Involved valuation specialists to assist in reviewing the valuation reports prepared by the Group's valuation experts. These specialists assessed the fair value of these instruments, evaluated the pricing model used for valuing the financial instruments, and tested the significant assumptions and reasonableness of the derivative component.
• Reviewed the disclosures in the financial statements in relation to the financial instruments.

Taxation

See Note 2(n), 34 and 38 to consolidated financial statements

The key audit matter

How the matter was addressed in our audit

Group operates across various tax he jurisdictions around the world and is subject to complexities with respect to various tax positions on matters such as: - deductibility of transactions - recoverability of deferred tax asset for subsidiary - Uncertainty in a tax position may arise as tax laws are subject to interpretation. Judgment is required in assessing the range of possible outcomes for some of these tax matters. These judgments could change over time as each of the matter progresses depending on the experience of actual assessment proceedings by tax authorities and other judicial precedents. The Group makes an assessment (including obtaining opinion from external legal experts)

We performed the following audit procedures: • Tested the design and operating effectiveness of the Group's controls around the tax computation and tax matters; • Obtained an understanding of the key uncertain tax positions based on list of ongoing litigations and tax computations for the current year; Assessed the implications of correspondence received by the Group from the relevant tax authorities to identify any additional uncertain tax positions; • Assessed the Group's judgment regarding the eventual resolution of matters with various tax authorities. In this regard, we understood how the Group has considered past experience, where available, with the tax authorities in the

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to determine the outcome of these uncertain tax positions and decides to make an accrual or consider it to be a possible contingent liability. Where the amount of tax liabilities are uncertain, the Group recognizes accruals which reflect its best estimate of the outcome based on the facts known in the relevant • jurisdiction.

Biocon Biologics Limited, has recognised deferred tax assets (OTA) carried forward losses (hereinafter referred to as "tax losses") and recognised MAT credit on the basis of the Company's assessment of availability of future taxable profit to offset such tax losses based on business projections. The recoverability of the deferred tax assets depends upon factors such as the projected taxable profitability of business and the period considered for such projections, the rate at which those profits will be taxed and the period over which tax losses will be available for recovery. The amount is material to the financial statements and significant judgement and estimate is involved in the preparation offorecasts of future taxable profits based on the underlying business plans.

Considering the above, this was determined to be a Key Audit Matter for the engagement team during the audit for the year ended 31 March 2025.

respective jurisdictions;

• Examined external tax counsel opinions and consultations obtained by the Group for key matters during current and past periods, as relevant; and
• Involved tax specialists to assist us in evaluating the technical merits of tax position to form a judgement and the key assumptions made by the Group in tax computations and assessing the adequacy of the Group's disclosures in respect of contingent liabilities and provision for tax matters.
• Understanding Management's selection and application of methods, selection of assumptions and data, used in estimates for assessment of recoverability of deferred tax assets on tax losses and MAT credit.
• Involved tax specialists' to assess key assumptions made by the management for the recoverability of Deferred tax asset on tax losses.
• Retrospective review of the projections used in the assessment when compared to historical performance and assessing the sensitivity of key assumptions.

Information Other than Consolidated Financial Statements and Auditor's Report Thereon

The Holding Company's Management and Board of Directors are responsible for the other information. The other information comprises the Management reports such as Board Report, Management Discussion and Analysis, Corporate Governance Report and Business Responsibility Report, but does not include the financial statements and auditor's report thereon, which we obtained prior to the date of this auditor's report, and the remaining sections of the Annual Report, which are expected to be made available to us after that date.

Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to M matt!!rIa11y tttIsStated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

When we read the other sections of Annual Report (other than those mentioned above), if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions, as applicable under the relevant laws and regulations.

Biocon Limited

Management's and Board of Directors'/ Board of Trustees' Responsibilities for the Consolidated Financial Statements

The Holding Company's Management and Board of Directors are responsible for the preparation and presentation of these consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated state of affairs, consolidated profit/ loss and other comprehensive income, consolidated statement of changes in equity and consolidated cash flows of the Group including its associate and joint venture in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective Management and Board of Directors of the companies included in the Group and of its associate and joint venture are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of each company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Management and Board of Directors of the Holding Company, as aforesaid.

In preparing the consolidated financial statements, the respective Management and Board of Directors of the companies included in the Group and of its associate and joint venture are responsible for assessing the ability of each company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group of its associate and joint venture are responsible for overseeing the financial reporting process of each company.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.
• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast Page 8 of 15

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significant doubt on the appropriateness of this assumption. lfwe conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and its associate and joint venture to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial statements/financial information of such entities or business activities within the Group and its associate and joint venture to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements/financial information of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditor, such other auditor remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in paragraph (a) of the section titled "Other Matters" in this audit report.

We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

a. We did not audit the financial information of one subsidiary, whose financial information reflects total assets (before consolidation adjustments) of Rs. 39,847 million as at 31 March 2025, total revenues (before consolidation adjustments) of Rs. 15,563 million and net cash outflows (before consolidation adjustments) amounting to Rs. 47 million for the year ended on that date, as considered in the consolidated financial statements. This financial information has been audited by other auditor whose report has been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of this subsidiary, and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to the atoresa1d subs1d1ary Is based solely on the report of the other auditor.

Biocon Limited

This subsidiary is located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in its country and which has been audited by other auditor under generally accepted auditing standards applicable in its country. The Holding Company's management has converted the financial information of such subsidiary located outside India from accounting principles generally accepted in its country to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Holding Company's management. Our opinion in so far as it relates to the balances and affairs of such subsidiary located outside India is based on the report of other auditor and the conversion adjustments prepared by the management of the Holding Company and audited by us.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of this matter with respect to our reliance on the work done and the report of the other auditor.

Report on Other Legal and Regulatory Requirements

• 1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
• 2 A. As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditor on separate financial statements of such subsidiary as were audited by other auditor, as noted in the "Other Matters" paragraph, we report, to the extent applicable, that:
• a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
• b. In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books except for the matters stated in the paragraph 2B(f) below on reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014.
• c. The consolidated balance sheet, the consolidated statement of profit and loss (including other comprehensive income), the consolidated statement of changes in equity and the consolidated statement of cash flows dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
• d. In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act.
• e. On the basis of the written representations received from the directors of the Holding Company as on 1 April 2025 and 3 April 2025 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary companies incorporated in India, none of the directors of the Group companies, incorporated in India is disqualified as on 31 March 2025 from being appointed as a director in terms of Section 164(2) of the Act.
• f. the modification relating to the maintenance of accounts and other matters connected therewith are c'!I! !laled in Liu:: tJdtdy1dµl1 2A(I.J) dl.Juv~ uII ,~µutli11y u11ul::!1 31::!l;liu11 143(3)(1.J) ,mu µc11c1y1c1µII 2B(f) below on reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014.
• g. With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding Company and its subsidiary companies incorporated in India and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
• B. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of the other auditor on separate financial statements of the subsidiary, as noted in the "Other Matters" paragraph: Page 10 of 15

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• a. The consolidated financial statements disclose the impact of pending litigations as at 31 March 2025 on the consolidated financial position of the Group, its associate and joint venture. Refer Note 34 to the consolidated financial statements.
• b. Provision has been made in the consolidated financial statements, as required under the applicable law or Ind AS, for material foreseeable losses, on long-term contracts including derivative contracts. Refer Note 36 to the consolidated financial statements in respect of such items as it relates to the Group, its associate and joint venture.
• c. There has been no delay in transferring amounts to the Investor Education and Protection Fund by the Holding Company or its subsidiary companies incorporated in India during the year ended 31 March 2025.
• d (i) The respective management has represented to us that, to the best of its knowledge and belief, as disclosed in the Note 45 to the consolidated financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Holding Company or any of such subsidiary companies, associate companies and joint venture companies to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Holding Company or any of such subsidiary companies, associate companies and joint venture companies ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
• (ii) The respective management has represented to us that, to the best of its knowledge and belief, as disclosed in the Note 45 to the consolidated financial statements, no funds have been received by the Holding Company or any of such subsidiary companies, associate companies and joint venture companies from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Holding Company or any of such subsidiary companies, associate companies and joint venture companies shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
• (iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11 (e), as provided under (i) and (ii) above, contain any material misstatement.
• e. The final dividend paid by the Holding Company and its subsidiary company incorporated in India during the year, in respect of the same declared for the previous year, is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.

As stated in Note 48 to the consolidated financial statements, the respective Board of Directors of the Holding Company and its subsidiary company incorporated in India have proposed final dividend for the year which is subject to the approval of the respective members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.

f. Based on our examination which included test checks, except for the instances mentioned below, the Holding Company and its subsidiary companies which are companies incorporated in India whose financial statements have been audited under the Act, have used accounting softwares for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective softwares: (a) In respect of the Holding Company and its six subsidiary companies, the feature of recording audit trail (edit log) facility was not enabled (i) at the database level for the period from 1 April 2024 to 24 October 2024. Also, for one database user the audit trail was not enabled for the period from 1 April 2024 to 25 February 2025; (ii) at the application level for Page 11 of 15

Biocon Limited

certain fields / tables relating to all the significant processes and (iii) for certain changes at the application level which were performed by users having privileged access rights for the accounting software used for maintaining general ledger. (b) In respect of the Holding Company and its one subsidiary company, the feature of recording audit trail (edit log) facility was not enabled (i) at the database level to log any direct data changes and (ii) for certain changes at the application level which were performed by users having privileged access rights for the accounting software used for maintaining the books of account relating to consolidation.

Further, for the periods where audit trail (edit log) facility was enabled and operated, we did not come across any instance of audit trail feature being tampered with. Additionally, except where the audit trail was not enabled in the previous year, the audit trail has been preserved by the Company as per the statutory requirements for record retention.

C. With respect to the matter to be included in the Auditor's Report under Section 197(16) of the Act:

In our opinion and according to the information and explanation given to us the remuneration paid during the current year by the Holding Company and its subsidiary companies to its directors is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director by the Holding Company and its subsidiary companies are not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

For B S R & Co. LLP

Chartered Accountants

Partner Membership No.: 041870 ICAI UDIN:25041870BMOMLG1589

Place: Mumbai Date: 08 May 2025

BS R & Co. LLP

Annexure A to the Independent Auditor's Report on the Consolidated Financial Statements of Biocon Limited for the year ended 31 March 2025

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' section of our report of even date)

(xxi) In our opinion and according to the information and explanations given to us, following companies incorporated in India and included in the consolidated financial statements, have unfavourable remarks, qualification or adverse remarks given by the respective auditors in their reports under the Companies (Auditor's Report) Order, 2020 (CARO):

Sr. No.	Name of the entities	CIN	Holding Company/Sub sidiary/ JV/ Associate	Clause number of the CARO report which is unfavourable or qualified or adverse
1	Biocon Limited	L24234KA 1978 PLC003417	Holding	3(ix)(d)
2	Syngene Scientific Solutions Limited	U73200KA202 2PLC164804	Subsidiary	3(ix)(d)
3	Syngene Manufacturing Solutions Limited	U24290KA2022 PLC165409	Subsidiary	3(xvii)
4	Biocon Biosphere Limited	U24304KA2019 PLC130965	Subsidiary	3(xvii)

For B S R & Co. LLP

Chartered Accountants Firm's Registration No.: 101248W/W-100022

I

Partner Membership No.: 041870 ICAI UDIN:25041870BMOMLG1589

Place: Mumbai Date: 08 May 2025 Annexure B to the Independent Auditor's Report on the consolidated financial statements of Biocon Limited for the year ended 31 March 2025

Report on the internal financial controls with reference to the aforesaid consolidated financial statements under Clause (i) of Sub-section 3 of Section 143 of the Act

(Referred to in paragraph 2(A)(g) under 'Report on Other Legal and Regulatory Requirements' section of our report of even date)

Opinion

In conjunction with our audit of the consolidated financial statements of Biocon Limited (hereinafter referred to as "the Holding Company") as of and for the year ended 31 March 2025, we have audited the internal financial controls with reference to financial statements of the Holding Company and such companies incorporated in India under the Act which are its subsidiary companies, as of that date.

In our opinion, the Holding Company and such companies incorporated in India which are its subsidiary companies, have, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2025, based on the internal financial controls with reference to financial statements criteria established by such companies considering the essential components of such internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the "Guidance Note").

Management's and Board of Directors' Responsibilities for Internal Financial Controls

The respective Company's Management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the respective company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of intflrnnl finr1nr.ir1I r.nntrnls with rnfflrnnr.fl tn finr1nr.ir1I stritflmflnts, rissflssina thfl risk thrit r1 mntfHinl weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls with reference to financial statements.

BS R & Co. LLP

Annexure B to the Independent Auditor's Report on the consolidated financial statements of Biocon Limited for the year ended 31 March 2025 (Continued)

Meaning of Internal Financial Controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

For B S R & Co. LLP

Chartered Accountants Firm's Registration No.: 101248W/W-100022

Partner Membership No.: 041870 ICAI UDIN:25041870BMOMLG1589

Place: Mumbai Date: 08 May 2025

BIOCON LIMITED

CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

	Note	March 31, 2025	March 31, 2024
ASSETS
Non-current assets
Property, plant and equipment	3	87,082	74,181
Capital work-in-progress	3	41,017	39,852
Right-of-use assets	4(b)	6,042	5,745
Goodwill	4(a)	1,67,857	1,63,724
Other intangible assets Intangible assets under development	4(a) 4 (a)	58,652 44,067	62,786 40,081
Financial assets
(i) Investments	s	6,797	6,841
(ii) Derivative assets		1,874	2,657
(iii) Other financial assets	6	683	1,466
Deferred tax assets (net)	7	2,577	3,173
Income-tax assets (net)		3,706	4,129
Other non-current assets Total non-current assets	8(a)	4,757 4,25,111	4,280 4,08,915
Current assets Inventories	9	49,311	49,439
Financial assets
(i) Investments	10	4,473	3,156
(ii) Trade receivables	11	54,879	62,306
(iii) Cash and cash equivalents	12	32,271	12,336
(iv) Bank balances other than (iii) above	12	8,931	10,251
(v) Derivative assets		964	1,384
(vi) Other financial assets	6	4,559	5,769
Other current assets Total current assets	8(b)	7,474 1,62,862	7,151 1,51,792
TOTAL ASSETS		5,87,973	5,60,707
EQUITY AND LIABILITIES
Equity
Equity share capital	13(a)	6,003	6,003
Other equity	13(b)	2,10,437	1,91,834
Equity attributable to owners of the Company		2,16,440	1,97,837
Non-controlling interests	13(b)	60,685	54,911
Total equity		2,77,125	2,52,748
Non-current llabillties
Financial liabilities
(i) Borrowings	14	1,24,054	1,29,324
(ii) Lease liabilities (iii) Derivative liabilities	15	5,391 232	4,924
(iv) Other financial liabilities	16(a)	28,282	10,725
Provisions	17(a)	2,608	2,376
Deferred tax liabilities (net)	7	3,577	3,915
Other non-current liabilities	18(a)	3,366	3,107
Total non-current liabilities		1,67,510	1,54,371
Current llabllltles
Financial liabilities
(i) Borrowings	19	53,501	27,972
(ii) Lease liabilities	15	674	547
(iii) Trade payables	20
-total outstanding dues of micro enterprises and small enterprises; and		1,315	958
-total outstanding dues of creditors other than micro enterprises and small enterprises (iv) Derivative liabilities		64,172	61,762, 12
(v) Other financial liabilities	16(b)	455 9,326	50,005
Other current liabilities	18(b)	10,248	7,768
Provisions	17(b)	1,916	1,795
Current tax liabilities, (net)		1,731	2,769
Total <ut1ont llabllltles<="" td="">		1,43,338	1,53,588		1,43,338	1,53,588
TOTAL LIABILITIES		3,10,848	3,07,959
TOTAL EQUITY AND LIABILITIES		5,87,973	5,60,707
The accompanying notes are an integral part of the consolidated financial statements.

As per our report of even date attached

for BSR&Co.LLP for and on behalf of the Board of Directors of Biocon Limited

Klran Mazumdar-Shaw Executive Chairperson

DIN:003~

Bengaluru May 08, 2025

Manag;ng Director & CEO

0

LO~<-:, *

BIOCON LIMITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

	Note	Year ended March 31, 2025	Year ended March 31, 2024
Income
Revenue from operations
Other income	21 22	1,52,617 12,082	1,47,557 8,655
Total income (I)		1,64,699	1,56,212
Expenses
Cost of materials consumed	23	42,767	50,719
Purchases of stock-in-trade		6,266	6,827
Changes in inventories of finished goods, work-in-progress and stock-in-trade	24	2,942	(8,567)
Employee benefits expense	25	31,444	26,641
Finance costs Depreciation and amortisation expense	26 27	8,974 16,870	9,744 15,688
Other expenses	28	39,011	39,788
		1,48,274	1,40,840
Less: Recovery of cost from co-development partners (net)		(1.476)	(838)
Total expenses (II)		1,46,798	1,40,002
Profit before tax, share of profil/(loss) of joint venture and associates and exceptional items (1-11)		17,901	16,210
Share of loss of joint venture and associates, (net)			(842)
Profit before tax and exceptional items		17,901	15,368
Exceptional items, (net)	32	965	(116)
Profit before tax		18,866	15,252
Tax expense Current tax	38	3,693	3,143
Deferred tax (credit)/ charge MAT credit written off/ utilisation (net of entitlements) [refer note 38)		554	(774)
Other deferred tax		325	(95)
Total tax expense		4,572	2,274
Profit for the year		14,294	12,978
Other comprehensive income (OCI) (i) Items that will not be reclassified subsequently to profit or loss
Re-measurement on defined benefit plans		(64)	(81)
Equity instruments through OCI		(84)	217
Income tax effect		(26)	30
(Ii) Items that may be reclassified subsequently to profit or loss		(174)	166
Effective portion of gains/ (losses) on hedging instrument in cash flow hedges		(1,622)	2,887
Exchange difference on translation of foreign operations, including effective portion of net investment hedges		S,692	1,509
Income tax effect		471	(695)
		4,541	3,701
Other comprehensive income for the year, net of taxes		4,367	3,867
Total comprehensive Income for the year		18,661	16,845
Profit attributable to:
Shareholders of the Company		10,133	10,225
Non-controlling interests		4,161	2,753
Profit for the year		14,294	12,978
Other comprehensive income attributable to:
Shareholders of the Company		3,563	2,688
Non-controlling interests		804	1,179
Other comprehensive Income for the year		4,367	3,867
Total comprehensive Income attributable to: Shareholders of the Company		13,696	12,913
Non-controlling interests		4,965	3,932
Total comprehensive Income for the year		18,661	16,845
Earnings per equity share	31
From continuing operations
Basic (in Rs.)		8.46	8.55
Diluted (in Rs.)		8.46	8,54

The accompanying notes are an integral part of the consolidated financial statements.

As per our report of even date attached

for BSR&Co.LLP Chartered Accounronr• Firm Regl n NuP'ber: 101248W/W-100022

Mumbai Mayos, 2025 for and on behalf of the Board of Directors of Blocon Limited

Executive Chairperson l o,cooMn~ k~ Interim Chief Financial Officer

Bengaluru Mayos, 2025

Managing Director & CEO

BIOCON LIMITED

CONSOUD;\TED STATEMENT OF CHANGES IN EQUITY FOR Tl-£ YEAR ENDED MARCH 31, 2025 (All amounts are In Indian Rupees MIiiion, except share date and per share data, unless otherwise stated)

(A) Equity share capital	March 31, 2025 March 31, 2024
Opening balance	6,003	6,003
Issued during the period.
Closing balance	6,003	6,003

(8) Other Equity

	Attributable to owners of the Company
		Reserves and surplus											Items of other comprehensive income		Non-
Particulars	Securities premium	Revaluation reserve	Debenture redemption reserve	Capital redemption reserve	Capital reserve	General reserve	Retained earnings	SEZ Re- investment reserve	Share based payment reserve	Treasury shares	Foreign currency translation reserve	Cash flow hedging reserves	Other items of other comprehensive income*	Total other equity	controlling interests ('NCI')	Total
Balance at April 01, 2023	1,735	$\mathbf{q}$	1,363	1,292	801	1,617	1,60,859	e.	2,740	(971)	4,707	182	(1,668)	1,72,666	46,219	2,18,885
Profit for the year Other comprehensive income/ (loss), net of tax		Сw.	× o.			$\sim$ ×	10,225		$\sim$		1,509	983	$\sim$ 196	10,225 2,688	2,753 1,179	12,978 3,867
Total comprehensive Income/ (loss) for the year	$\sim$	$\rightarrow$	. etc.	ж.	Sec.	×	10,225	$\sim$	$\sim$	contract.	1,509	983	196	12,913	3,932	16,845
Transfer to Special Economic Zone ('SEZ') re-investment reser-e Transfer from SEZ re-investment reserve on utilisation			$\sim$ $\ddot{ }$			$\sim$ $\sim$	(650) 650	650 (650)	$\sim$
Transactions with Owners directly recorded in equity: Share based payment			16						999					999		999
Net impact of lease transfer Change in fair value of gross liability on written put options			$\cdots$			261	(989							261 (989)	$\sim$	261 (989)
Acquisition of business (refer note 42B)			-2		39									39		39
Issue of shares by a subsidiary							7,399							7,399	5,001	12,400
Dividend paid on equity shares (including to NCI) Exercise of share options	550						(1,801) 335		(538)					(1,801) 347	(226) (15)	(2,027) 332
Balance at March 31, 2024	2,285	-9	1,363	1,292	840	1,878	1,76,028	÷	3,201	(971)	6,216	1,165	(1, 472)	1,91,834	54,911	2,46,745
Profit for the year Other comprehensive income/ (loss), net of tax						m. $+1$	10,133		× $\sim$		5,692	(1, 944)	$\blacksquare$ (185)	10,133 3,563	4,161 B04	14,294 4,367
Total comprehensive income/ (loss) for the year	$\sim$	$\sim$	$\cdot$	Sec.	÷	$\rightarrow$	10.133	$\sim$	$\sim$		5,692	(1, 944)	(185)	13,696	4,965	18,661
Transfer to Special Economic Zone ('SEZ') re-investment reserve Transfer from SEZ re-investment reserve on utilisation Gain on sale of shares in a subsidiary [refer note 32(a)]							(360) 360 5,689	360 (360)	$\epsilon$			$\sim$ $\cdots$		$-4$ $\cdot$ 5,689	$\sim$ $\mathcal{L}$ 882	6,571
Transactions with Owners directly recorded in equity: Share based payment Change in fair value of gross liability on written put options							(1, 718)		1,344					1,344 (1,718)	$-1$ $\rightarrow$	1,344 (1,718)
Transfer from Debenture redemption reserve			(54)				S 4							$\sim$	$\sim$	ALC:
Dividend caid on equity shares (including to NCI) Exercise of share options	296						(600)		(296)	$\overline{a}$ 187	$\sim$	٠ w	$-$ $\sim$	(600) 192	(229) 156	(829) 348
Balance at March 31, 2025	2,581	9	1,309	1,292	840	1,878	1,89,591		4,249	(784)	11,908	(779)	(1,657)	2,10,437	60,685	2,71,122

• Refer No:e 35 for remeasurement galn/(loss) on defined be ■efit obligations,

The accom:::>anying notes are an integral part of the consollda1=!d financial statements,

As per our report of even date attached

for BSR&Co. UP for and on behalf of the Board of Directors

Mumbai May 08, 2C25

Klran Matumdar-Shaw Executive Chairperson DIN: 00347229

Bengaluru May 08, 2025

L~ Siddharth Mittal

Managing Director & CEO DIN: 03230757

BIOCON LIMITED

STATEMENT OF CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED MARCH 31, Z02S

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

		March 31, 2025	March 31, 2024
	Cash flows from operating activities
	Profit for the year
	Ad(ustmerrts to recondle proflt for the year to·net cosh flows	14,294	12,978
	Depreciation and amortisation expense	16,870	15,688
	Tax expense	4,572	2,274
	Unrealised foreign exchange gain	(576)	(1,054)
	Share-based compensation expense	1,370	1,006
	Provision/ (reversal) of doubtful debts, (net)	260	(182)
	Bad debts written off	30	11
	Interest expense	8,974	9,744
	Interest income	(1,087)	(1,613)
	Net loss/ (gain) on financial instruments measured at fair value through profit or loss	798	(1,015)
	Net gain on sale of current investments	(383)	(686)
	Loss on sale of property, plant and equipment (net) Gain on dilution of interest in a associate [refer note 44]	76	12 (1,053)
	Gain on loss of significant influence [refer note 44]		(4,254)
	Share of loss of joint venture/ associates		842
	Gain on slump sale (net)	(10,573)
	Dividend income	(28)
	Other non-cash items	81
	Exceptional items, (net) (refer note 32)	1,300	6,116
	Operating profit before changes in operating assets and liabilities	35,978	38,814
	Movement in operating assets and liabilities
	Increase in inventories	(3)	(8,864)
	Decrease I (Increase) in trade receivables	5,482	(24,174)
	increase in other assets	(2,057)	(2,679)
	Increase in trade payables, other liabilities and provisions	5,808	29,365
	Cash generated from operations	45,208	32,462
	Income taxes paid (net of refunds) Net cash flow generated from operating activities	(4,596) 40,612	(2,923) 29,539
	II Cash flows from investing activities
	Purchase of property, plant and equipment	(21,366)	(16,805)
	Purchase of intangible assets Proceeds from sale of property, plant and equipment	(2,067) 3	(2,511) 233
	Proceeds from sale of shares in subsidiary	6,832
	Purchase of non-current investments	75
	Purchase of current investments	(82,262)	(37,708)
	Consideration paid for business acquisition [refer note 42A & 42B]		(5,532)
	Proceeds from sale of current investments	81,098	39,682
	Investment in bank deposits and inter-corporate deposits	(20,155)	(15,632)
	Redemption/ maturity of bank deposits and inter-corporate deposits Consideration of sale of business [refer note 42C]	22,909 11,420	26,782
	Interest received	1,144	1,446
	Dividend received	28
	Net cash flow used in investing activities	(2,341)	(10,045)
	Ill Cash flows from financing activities
	Proceeds from issuance of shares by subsidiary	5
	Proceeds from exercise of share options	99	307
	Proceeds from non-current borrowings	96,582	5,718
	Proceeds from Non-recourse factoring arrangement	1,067
	Repayment of non-current borrowings	(97,699)	(27,678)
	Proceeds from issuance of debentures		8,000
	Proceeds from current borrowings (net of repayments)	6,846	1,248
	Dividend paid on equity shares (including to NCI) Payment of deferred consideration r1?l~te\l to ~,1.1~i~ition of biosimiliars business frnm Viijtris	(829)	(2,030)
	Repayment of lease liabilities, (net)	r1G,aa11 (1,388)	(418)
	Interest paid	(6,342)	(8,474)
	Net cash flow used in financing activities	(18,540)	(23,327)
	IV Net increase/ (decrease) in cash and cash equivalents (I + II + Ill)	19,731	(3,833)
V	Effect of exchange differences on cash and cash equivalents held in foreign currency	312	29
VI	Cash and cash equivalents at the beginning of the year	9,195	12,999
	VIII Cash and cash equivalents at the end of the year (IV+ V + VI + VII)	2.9,238	9,195
		~ '	/' --·• (1' J. "11 .-')
		{~7(·	),-_. -~,
			}._
		'\~'.; ~::.	:·: ~

• Ir" ,·•.• •',"• , . \"'v 8,.;~.,..-

BIOCON LIMITED STATEMENT OF CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED MARCH 31, 202S (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

Reconciliation of cash and cash equivalents as per statement of cash flows Cash and cash equivalents [note 12] Balances with banks - on current accounts Deposits with original maturity of less than 3 months Cash credits [note 19] Balance as per statement of cash flows March 31, 2025 March 31, 2024 19,488 11,636 4 2 12,779 698 32,271 12,336 (3,033) (3,141) 29,238 9,195 Balances with banks - unpaid dividend accounts*

*The Group can utilize these balances only towards settlement of the respective unpaid dividend liabilities.

Reconciliation between opening and closing balance sheet for liabilities arising from financing activities

	Opening balance	Cash flows	Non-cash	Closing balance
	April 1, 2024		movement	March 31, 2025
Non- current borrowings (including current maturities)	1,35,804	(1,117)	8,321	1,43,008
Current borrowings	18,351	7,913	5,250	31,514
Interest accrued but not due	176	(6,342)	8,652	2,486
lease liabilities (including current)	5,471	(1,388)	1,982	6,065
Total liabilities from financing activities	1,59,802	(934)	24,205	1,83,073

	Opening balance	Cash flows	Non -cash	Closing balance
	April 1, 2023		movement	March 31, 2024
Non- current borrowings (including current maturities)	1,52,905	(21,960)	4,859	1,35,804
Current borrowings	24,515	1,248	(7,412)	18,351
Interest accrued but not due	202	(8,474)	8,448	176
Lease liabilities (including current)	2,481	(418)	3,408	5,471
Total liabilities from financing activities	1,80,103	(29,604)	9,303	1,59,802

The accompanying notes are an integral part of the consolidated financial statements.

As per our report of even date attached

for B S R & Co. LLP

Chartered Accountants n Number: 101248W/W-100022 /

Mumbai May 08, 2025 for and on behalf of the Board of Directors of Biocon Limited

Kiran Mazumdar-Shaw Executive Chairperson DIN: 00347229

Chief Financial Officer

Mumbai May 08, 2025

Managing Director & CEO DIN: 03230757

BIOCON LIMITED

Notes to the consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees millions, except share data and per share data, unless otherwise stated)

1. Company Overview

1.1 Reporting entity

Biocon Limited ("Biocon" or the "parent company" or "the Company"), together with its subsidiaries, joint venture and associates (collectively, the "Group") is engaged in the manufacture of biotechnology products and research services. The Company is a public limited company incorporated and domiciled in India and has its registered office in Biocon Campus, 20th KM, Hosur Road, Electronic City, Bengaluru - 560 100. The Company's shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India.

1.2 Basis of preparation of financial statements

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the 'Act') and other relevant provisions of the Act.

These consolidated financial statements have been prepared for the Group as a going concern on the basis of relevant Ind AS that are effective at the Company's annual reporting date, March 31, 2025.

The Group has net current asset position of Rs. 19,524 as at March 31, 2025. The Group has assessed its financial position as at March 31, 2025 and its forecasts for a period of fifteen months from the date of these financial statements. As part of this assessment, Management has considered the Put option obligation entered by the Group with certain financial investors to provide exit to the investors as described in note 16(a).

Management has assessed its ability to re-negotiate the exit terms with financial investors, ability to raise funds as stated in Note 48 (d), re-finance its existing borrowings and support liquidity from its non current assets. Based on these factors, management believes that the Group has sufficient financial resources available to it at the date of approval of these financial statements and has prepared its financial statements under going concern assumption.

These consolidated financial statements are approved for issuance by the Company's Board of Directors on May 08, 2025.

Details of the Group's significant accounting policies are included in Note 2.

b. Functional and presentation currency

These consolidated financial statements are presented in Indian rupees (INR), which is also the functional currency of the parent Company. All amounts have been rounded-off to the nearest million, unless otherwise indicated. In respect of subsidiaries and associates whose operations are self-contained and integrated, the functional currency has been determined to be the currency of the primary economic environment in which the entity operates.

c. Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis (i.e. on accrual basis), except for the following items:

• Derivative Financial Instruments at fair value
• Certain financial assets and liabilities are measured at fair value;
• Net defined benefit assets/(liability) are measured at fair value of plan assets, less present value of defined benefit obligations
• Contingent consideration assumed in a business combination at fair value
• Non-Convertible Debentures with variable coupon linked to equity shares of the subsidiary at fair value
• Non derivative financial instruments at Fair Value Through Profit and Loss (FVTPL)

d. Use of estimates and judgements

The preparation of the consolidated financial statements in conformity with Ind AS requires Management to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the consolidated financial a ents.

BIOCON LIMITED

Notes to the consolidated financial statements for the year ended March 31, 2025

Judgements

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements is included in the following notes:

• Note 1.2(b) - Assessment of functional currency;
• Note 2(c) and 36 - Financial instruments;
• Note 2(d), 2(e) and 3 - Useful lives of property, plant and equipment and other intangible assets
• Note 2(j) and 35 - measurement of defined benefit obligation; key actuarial assumptions;
• Note 30
• Share based payments;
• Note 2(n), 7 and 38 - Provision for income taxes and related tax contingencies and evaluation of recoverability of deferred tax assets
• Note 2(1) and 21 - Revenue Recognition: whether revenue from sale of product and licensing income is recognized over time or at a point in time;
• Note 16 - Liability on written put options;

e. Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending March 31, 2025 is included in the following notes:

• Note 2(i) impairment test of non-financial assets; key assumptions underlying recoverable amounts including the recoverability of expenditure on internally-generated intangible assets;
• Note 2(n), 7 and 38- recognition of deferred tax assets: uncertain tax treatment;
• Note 2(1) and 21 Revenue Recognition; estimate of expected returns, chargebacks, rebates and other allowances;
• Note 17 and 34- recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources;
• Note 2(j) and 35 measurement of defined benefit obligations: key actuarial assumptions; and
• Note 36 impairment of financial assets: underlying recoverable amount;
• Note 2(i) and 43 impairment test of goodwill: key assumptions underlying recoverable amounts, including the recoverability of development costs; and
• Note 42 acquisition of business: fair value of the consideration transferred (including contingent consideration) and fair value of the assets acquired and liabilities assumed, measured on a provisional basis.

f. Measurement of fair values

A number of the Group's accounting policies and disclosures require the measurement of fair values, for both financial and nonfinancial assets and liabilities.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Group has an established control framework with respect to the measurement of fair values. This includes a finance team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values.

¹¹'1~ broup regularly reviews signiticant unobservable inputs and valuation adjustments. If third party information is used to measure fair values, then the finance team assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significaht to the entire

The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Further information about the assumptions made in measuring fair values is included in the following notes:

• Note 30 Note 36 - Share-based payment arrangements - Financial instruments
• Note 42 - Business Combination

Z. Material accounting policies

a. Basis of consolidation

i. Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

The financial statements of the Group are consolidated on line-by-line basis. Intra-group transactions, balances and any unrealised gains arising from intra-group transactions, are eliminated. Unrealised losses are eliminated, but only to the extent that there is no evidence of impairment. All temporary differences that arise from the elimination of profits and losses resulting from intragroup transactions are recognised as per Ind AS 12, Income Taxes.

For the purpose of preparing these consolidated financiai statements, the accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Group.

Non-controlling interests {NCI)

NCI are measured at their proportionate share of the acquiree's net identifiable assets at the date of acquisition.

Changes in the Group's equity interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

ii. Loss of control

When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any interest retained in the former subsidiary is measured at fair value at the date the control is lost. Any resulting gain or loss is recognised in statement of profit or loss.

iii. As~ociates and joint arrangements (equity accounted investees)

The Group's interests in equity accounted investees comprise interests in associates and a joint venture.

An associate is an entity in which the Group has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement in which the Group has joint control and has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.

Interests in associates and joint venture are accounted for using the equity method. They are initially recognised at cost which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group's share of profit or loss and other comprehensive income (OCI) of equity- accounted investees until the date on which significant influence or joint control ceases.

iv. Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses (except for foreign currency transaction gains or losses) arising from intra-group transactions, are eliminated. Unrealised gains arising from transactions with equity-accounted investees are ehmmated against the investment to the extent of the Group's interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

b. Foreign currency

i. Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of companies at the exchange rates at the dates of the transactions or an average rate if the average rate approximates the actual rate at the date of the flSac,tion. - c- ^~\JM17:t ~ o.< c'?~<J

BIOCON LIMITED Notes to the consolidated financial statements for the year ended March 31, 2025

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Exchange differences are recognised in statement of profit or loss, except exchange differences arising from the translation of the qualifying cash flow hedges to the extent that the hedges are effective which are recognised in OCI.

ii. Foreign operations

The assets and liabilities of foreign operations (subsidiaries, associates, joint arrangements) including goodwill and fair value adjustments arising on acquisition, are translated into INR, the functional currency of the Group, at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into INR at the exchange rates at the dates of the transactions or an average rate if the average rate approximates the actual rate at the date of the transaction.

Foreign currency translation differences are recognised in OCI and accumulated in equity (as exchange differences on translating the financial statements of a foreign operation), except to the extent that the exchange differences are allocated to NCI.

c. Financial instruments

i. Recognition and initial measurement

Trade receivables and debt securities issued are initially recognised when they are originated. All otherfinancial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

ii. Classification and subsequent measurement

Financial assets

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

• amortised cost;
• Fair value through other comprehensive income (FVOCI)- debt investment;
• Fair value through other comprehensive income equity investment; or
• Fair value through profit and loss

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

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

• the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

• the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and·
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

Financial instruments (continued)

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

Financial assets: Subsequent measurement and gains and losses

Financial assets at FVTPL	These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in statement of profit or loss. However, see Note 36 for derivatives designated as hedging instruments.
Financial assets at amortised cost	These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in statement of profit or loss. Any gain or loss on derecognition is recognised in statement of profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value. Interest income under the effective interest method, foreign exchange gains and losses and impairment are recognised in statement. of profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to statement of profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value. Dividends are recognised as income in statement of profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are not reclassified to profit or loss.

Financial liabilities: Classification, subsequent measurement and gains and losses

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

iii. De-recognition of financial instruments

Financial assets

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

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of the Group's continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.

Financial liabilities

Ill

The Group de-recognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Group also de-recognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised ent of profit or loss.

iv. Offsetting

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

v. Derivative financial instruments and hedge accounting

The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met.

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognised in statement of profit or loss.

The Group designates certain derivatives as hedging instruments to hedge the variability in cash flows associated with highly probable forecast transactions arising from changes in foreign exchange rates and interest rates.

At inception of designated hedging relationships, the Group documents the risk management objective and strategy for undertaking the hedge. The Group also documents the economic relationship between the hedged item and the hedging instrument, including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each ·other.

Cash flow hedges

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognised in OCI and accumulated in other equity under 'effective portion of cash flow hedges'. The effective portion of changes in the fair value of the derivative that is recognised in OCI is limited to the cumulative change in fair value of the hedged item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in statement of profit or loss.

If a hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is terminated or is exercised, then hedge accounting is discontinued prospectively. When hedge accounting for cash flow hedges is discontinued, the amount that has been accumulated in other equity remains there until, for a hedge of a transaction resulting in recognition of a non-financial item, it is included in the non-financial item's cost on its initial recognition or, for other cash flow hedges, it is reclassified to profit or loss in the same period or periods as the hedged expected future cash flows affect profit or loss.

If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in other equity are immediately reclassified to profit or loss.

vi. Net investment hedges

When a derivative instrument or a non-derivative financial liability is designated as the hedging instrument in a hedge of a net investment in a foreign operation, the effective portion of changes in the fair value of a derivative or foreign exchange gains and losses for a non-derivative is recognised in OCJ and presented in other equity within equity. Any ineffective portion of the changes in the fair value of the derivative or foreign exchange gains and losses on the non-derivative is recognized immediately in profit or loss. The amount recognised in OCI is fully or partially reclassified to profit or loss as a reclassification adjustment on disposal or partial disposal of the foreign operation, respectively

vii. Treasury shares

The Gruuµ lid~ uedleu drl Er11µluyee Welfdre Tr u~L (EWT) fur µr uviding share-based pay111e1,t to it! employees. Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. When the treasury shares are issued to the employees by EWT, the amount received is recognised as an increase in equity and the resultant gain (loss) is transferred to/ from securities premium.

E\IOCON LIMITED Notes to the consolidated financial statements for the year ended March 31, 2025

viii. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and sho·rt-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group's cash management.

ix. Cash dividend to equity holders

The Group recognises a liability to make cash distribution to equity holders when the distribution is authorised and the distribution is no longer at the discretion of the Group. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity. Interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors.

d. Property, plant and equipment

i. Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, if any. The cost of an item of property, plant and equipment comprises its purchase price including import duty and non refundable taxes or levies, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

Expenditure incurred on startup and commissioning of the project and/or substantial expansion, including the expenditure incurred on trial runs (net of trial run receipts, if any) up to the date of commencement of commercial production are capitalised.

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

Any gain or loss on disposal of an item of property, plant and equipment is recognised in statement of profit or loss.

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group and cost can be measured reliably

Advances paid towards acquisition of property, plant and equipment outstanding at each Balance Sheet date, are shown under other non-current assets and cost of assets not ready for intended use before the year end, are shown as capital work-in-progress.

ii. Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over their estimated useful lives using the straight-line method. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land is not depreciated.

The estimated useful lives of items of property, plant and equipment for the current and comparative periods are as follows:

Asset	Assets Classification	Management estimate of useful life	Useful life as per Schedule II
Building	Building	25-30 years	30 years
Roads	Building	5-12 years	5 years
Plant and equipment (including Electrical installation and Lab equipment)	Plant and Machinery	9-15 years	8-20 years
Computers and servers	Plant and Machinery	3 years	3-6 years
Office equipment	Plant and Machinery	3- 5 years	5 years
Research and development equipment	Research and development equipment	9 years	5-10 years
Furniture and fixtures	Furniture and fixtures	6 years	10 years
Vehicles	Vehicles	6 years	6-10 years
Leasehold improvements	Leasehold improvements	5 years or lease period whichever is lower
Leasehold land	Land	90 years or lease period whichever is lower

BIOCON LIMITED

Notes to the consolidated financial statements for the year ended March 31, 2025

Property, plant and equipment (continued)

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. Based on technical evaluation and consequent advice, the management believes that its estimates of useful lives as given above best represent the period over which management expects to use these assets.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which asset is ready for use (disposed of).

iii. Reclassification to investment property

When the use of a property changes from owner-occupied to investment property, the property is reclassified as investment property at its carrying amount on the date of reclassification.

e. Goodwill and other intangible assets

i. Goodwill

For measurement of goodwill that arises on a business combination. Subsequent measurement is at cost less any accumulated impairment losses.

ii. Other intangible assets

Internally generated: Research and development

Expenditure on research activities is recognised in statement of profit or loss as incurred.

Development expenditure is capitalised as part of the cost of the resulting intangible asset only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in statement of profit or loss as incurred. Subsequent to initial recognition, the asset is measured at cost less accumulated amortisation and any accumulated impairment losses.

Others

Other intangible assets are initially measured at cost. Subsequently, such intangible assets are measwed at cost less accumulated amortization and any accumulated impairment losses.

iii. Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in statement of profit or loss as incurred and cost can be measured reliably.

iv. Amortisation

Goodwill is not amortised and is tested for impairment annually.

Other intangible assets are amortised on a straight line basis over the estimated useful life as follows:

3-5 years
8-15 years
8-15 years
8-15 years
5 years

Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted if appropriate.

r I ' ·\, ·:..) f ·-·· . ',t-...:._,,,,I' .... __tAi ·-1 _ ..,. _,.,.

f. Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Upon initial recognition, an investment property is measured at cost. Subsequent to initial recognition, investment property is measured at cost less accumulated depreciation and accumulated impairment losses, if any.

Based on technical evaluation and consequent advice, the management believes a period of 25 years as representing the best estimate of the period over which investment properties (which are quite similar) are expected to be used. Accordingly, the Group depreciates investment properties over a period of 25 years on a straight-line basis. The useful life estimate of 25 years is different from the indicative useful life of relevant type of buildings mentioned in Part C of Schedule II to the Act i.e. 30 years.

Any gain or loss on disposal of an investment property is recognised in statement of profit or loss.

g. Business combination

In accordance with Ind AS 103, Business combinations, the Group accounts for business combinations after acquisition date using the acquisition method when control is transferred to the Group. In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.

The consideration transferred in the acquisition is generally measured at fair value as at the date the control is acquired (acquisition date), as are the identifiable net assets acquired. Any gain on a bargain purchase is recognised in the OCI and accumulated in equity as capital reserve if there exists clear evidence of the underlying reasons for classifying the business combination as a bargain purchase. If there does not exist clear evidence of the underlying reasons for classifying the business combination as a bargain purchase, then gain on a bargain purchase is recognised directly in equity as capital reserve.

Transaction costs/ acquisition related costs are expensed as incurred and services are received, except if related to the issue of debt or equity securities.

The consideration transferred does not include amounts related to the settlement of pre-existing relationships with the acquiree. Such amounts are generally recognised in the statement of profit and loss.

Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration (or right to receive excess contingent consideration transferred) that meets the definition of a financial instrument is classified as equity, then it is not re-measured and settlement is accounted for within equity. Otherwise, other contingent consideration is remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognized in profit or loss.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the business combination occurs, the Group reports in its financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, the Group retrospectively adjusts the provisional amounts recognised at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognised as of that date.

During the measurement period, the Group also recognises additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets and liabilities as of that date.

The measurement period ends as soon as the Group receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable but does not exceed one year from the acquisition date.

Business combinations - common control transaction

Business combination involving entities that are controlled by the group is accounted for at carrying value. No adjustments are made to reflect the fair values, or recognise any new assets or liabilities except to harmonise accounting policies. The financial information in the consolidated financial statements in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period in the consolidated financial statements, irrespective of the actual date of combination. The identity of the reserves are preserved and the reserves of transferor becomes the reserves of the transferee. The difference, if any between the amounts recorded as share capital issued plus any additional consideration in the form of cash and the amounts of share capital of the transferor is transferred to amalgamation adjustment reserves and is presented separately from other capital reserves.

h. Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out formula, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work-in-progress, cost includes an appropriate share of fixed production overheads based on normal operating capacity.

Provisions are made towards slow-moving and obsolete items based on historical experience of utilisation on a product category basis, which consideration of product lines and market conditions.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The net realisable value of work-in-progress is determined with reference to the selling prices of related finished products.

Raw materials, components and other supplies held for use in the production offinished products are not written down below cost except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed their net realisable value.

The comparison of cost and net realisable value is made on an item-by-item basis.

i. Impairment

i. Impairment of financial assets

In accordance with Ind AS 109 Financial Instruments, the Group applies Expected Credit Loss ("ECL") model for measurement and recognition of impairment loss on following:

financial assets measured at amortised cost; and

financial assets measured at FVOCI - debt investments.

Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime expected credit losses. For all other financial assets, ECL are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

Loss allowance for financial assets measured at amortised cost are deducted from gross carrying amount of the assets. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment gain or loss in the Statement of Profit and Loss.

ii. Impairment of non-financial assets

The Group assesses at each reporting date whether there is any indication that the carrying amount may not be recoverable. If any such indication exists, then the asset's recoverable amount is estimated and an impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount in the statement of profit or loss.

Goodwill is tested annually for impairment. For the purpose of impairment testing, goodwill arising from a business combination is allocated to CG Us or groups of CG Us that are expected to benefit from the synergies of the combination.

The recoverable amount of a CGU (or an individual asset) is higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flow, discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to CGU (or the asset).

The Group's non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. For impairment testing, assets that do not generate independent cash inflows are grouped together into cash-generating units (CG Us). Each CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CG Us.

Impairment loss recognised in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to nildLICQ thQ c.rrying .mounti of th11 oth11r ass11ts of thQ CGU (or Group of CGUi;) on il pro rata basis.

An impairment loss in respect of goodwill is not subsequently reversed. In respect of other assets for which impairment loss has been· recognised in prior periods, the Group reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

j. Employee benefits

i. Short-term employee benefits:

All employee benefits falling due within twelve months from the end of the period in which the employees render the related services are classified as short-term employee benefits, which include benefits like salaries, wages, short term compensated absences, performance incentives, etc. and are recognised as expenses in the period in which the employee renders the related service and measured accordingly."

ii. Post- employment benefits

Post-employment benefit plans are classified into defined benefits plans and defined contribution plans as under:"

Gratuity

The Group provides for gratuity, a defined benefit plan ("the Gratuity Plan") covering the eligible employees of the Company and its Indian subsidiaries. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of the employment with the Group.

Liability with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit method.

The Group recognises the net obligation of a defined benefit plan as a liability in its balance sheet. Gains or losses through remeasurement of the net defined benefit liability are recognised in other comprehensive income and are not reclassified to profit and loss in the subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognised in other comprehensive income. The effect of any plan amendments are recognised in the statement of profit and loss.

Provident Fund

Eligible employees of the Company and its Indian subsidiaries receive benefits from provident fund, which is a defined contribution plan. Both the eligible employees and the respective Companies make monthly contributions to the Government administered provident fund scheme equal to a specified percentage of the eligible employee's salary. Amounts collected under the provident fund plan are deposited with in a government administered provident fund. The Companies have no further obligation to the plan beyond its monthly contributions.

iii. Compensated absences

The Group has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheet date using the projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognised is the period in which the absences occur.

iv. Share-based compensation

The grant date fair value of equity settled share-based payment awards granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognised as expense is based on the estimate of the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that do meet the related service and non-market vesting conditions at the vesting date.

The grant date fair value of options granted (net of estimated forfeiture) to employees of the Group is recognised as an employee expense.

The expense is recorded for each separately vesting portion of the award as if the award was, in substance, multiple awards. The increase in equity recognised in connection with share based payment transaction is presented as a separate component in equity under "share based payment reserve". The amount recognised as an expense is adjusted to reflect the actual number of stock options that vest. For the option awards, grant date fair value is determined under the option-pricing model (Black-Scholes-Merton). Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures materially differ from those estimates.

k. Provisions (other than for employee benefits)

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

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.

Onerous contracts

A contract is considered to be onerous when the expected economic benefits to be derived by the Group from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before such a provision is made, the Group recognises any impairment loss on the assets associated with that contract.

I. Revenue from contracts with customers

The Group has implemented new standard Ind-AS 115 'Revenue from Contracts with Customers' effective April 1, 2018 using cumulative effect method. The effect of initially applying this standard is recognised at the date of initial application. The Group has 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 standard is applied retrospectively only to contracts that were not completed as at the date of initial application.

i. Sale of goods

Revenue is recognised when a promise in a customer contract (performance obligation) has been satisfied by transferring control over the promised goods to the customer. Control over a promised good refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, those goods. Control is usually transferred upon shipment, delivery to, upon receipt of goods by the customer, in accordance with the delivery and acceptance terms agreed with the customers. However, in certain cases, revenue is recognized on sale of products where shipment is on hold at specific request of the customer provided performance obligation conditions has been satisfied and control is transferred, with customer taking title of the goods. The amount of revenue to be recognized (transaction price) is based on the consideration expected to be received in exchange for goods, excluding amounts collected on behalf of third parties such as sales tax or other taxes directly linked to sales. If a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on their relative stand-alone selling prices.

For contracts with distributors, no sales are recognised when goods are physically transferred to the distributor under a consignment arrangement, or if the distributor acts as an agent. In such cases, sales are recognised when control over the goods transfers to the end-customer, and distributor's commissions are presented within marketing and distribution.

The consideration received by the Group in exchange for its goods may be fixed or variable. Variable consideration is only recognised when it is considered highly probable that a significant revenue reversal will not occur once the underlying uncertainty related to variable consideration is subsequently resolved.

Provision for charqeback. rebates and discounts

Revenues are recorded net of provisions for variable consideration, including discounts, rebates, governmental rebate programs, price adjustments, returns, chargebacks, promotional programs and other sales allowances. Accruals for these provisions are presented in the consolidated financial statements as reductions in determining net sales and as a contra asset in accounts receivable, net (if settled via credit) and trade payables (if paid in cash).

Provisions for chargeback, rebates, discounts and Medicaid payments are estimated and p·rovided for in the year of sales and reLurLleLI d~ reLluLllurr ur 1ever1ue. A Llrdrgel.JdLk. Lldl111 I~ d Lldl111111dLle uy L11e wliule~dle1~ rur Lh!!e diffei-en.:e between the priee at which the product is initially invoiced to the wholesaler and the net price at which it is agreed to be procured from the Company. Provisions for such chargebacks are accrued and estimated based on historical average chargeback rate actually claimed over a period of time, current contract prices with wholesalers/other customers and estimated inventory holding by the wholesalers/other customers.

Amounts recorded for revenue deductions can result from a complex series of judgements about future events and uncertainties and can rely heavily on estimates and assumptions.

BIOCON LIMITED

Notes to the consolidated financial statements for the year ended March 31, 2025

ii. Milestone payments and out licensing arrangements

The Group enters into certain dossier sales, licensing and supply arrangements that, in certain instances, include certain performance obligations. Based on an evaluation of whether or not these obligations are inconsequential or perfunctory, the Group recognise or defer the upfront payments received under these arrangements.

Income from out-licensing agreements typically arises from the receipt of upfront, milestone and other similar payments from third parties for granting a license to product- or technology- related intellectual property (IP). These agreements may be entered into with no further obligation or may include commitments to regulatory approval, co-marketing or manufacturing. These may be settled by a combination of upfront payments, milestone payments and other fees. These arrangements typically also consist of subsequent payments dependent on achieving certain milestones in accordance with the terms prescribed in the agreement. Milestone payments which are contingent on achieving certain clinical milestones are recognised as revenues either on achievement of such milestones, if the milestones are considered substantive, or over the period of continuing performance obligations, if the milestones are not considered substantive. Whether to consider these commitments as a single performance obligation or separate ones, or even being in scope of Ind-AS 115 'Revenues from Contracts with Customers', is not straightforward and requires some judgement. Depending on the conclusion, this may result in all revenue being calculated at inception and either being recognised at point in time or spread over the term of a longer performance obligation. Where performance obligations may not be distinct, this will bundled with the subsequent product supply obligations.

The new standard provides an exemption for sales-based royalties for licenses of intellectual property which will continue to be recognised as revenue as underlying sales are incurred.

The Group recognises a deferred income (contract liability) if consideration has been received (or has become receivable) before the Group transfers the promised goods or services to the customer. Deferred income mainly relates to remaining performance obligations in (partially) unsatisfied long-term contracts or are related to amounts the Group expects to receive for goods and services that have not yet been transferred to customers under existing, non-cancellable or otherwise enforceable contracts.

Contract assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are classified as unbilled receivables (only act of invoicing is pending) when there is unconditional right to receive cash, and only passage of time is required, as per contractual terms.

iii. Contract research and manufacturing services income:

Revenue is recognised upon transfer of control of promised services or compounds to customers in an amount that reflects the consideration we expect to receive in exchange for those services or compounds.

Arrangement with customers for Contract research and manufacturing services income are either on a time-and-material basis, fixed price or on a sale of compounds.

In respect of contracts involving research services, in case of 'time and materials' contracts, contract research fee are recognised as services are rendered, in accordance with the terms of the contracts.

Revenues relating to fixed price contracts are recognised based on the percentage of completion method determined based on efforts expended as a proportion to total estimated efforts. The Group monitors estimates of total contract revenue and cost on a routine basis throughout the contract period. The cumulative impact of any change in estimates of the contract revenue or costs is reflected in the period in which the changes become known. In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss.

In respect of contracts involving sale of compounds arising out of contract research, revenue is recognised when a promise in a customer contract (performance obligation) has been satisfied by transferring control over the promised goods to the customer. Control over a promised good refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, those goods. Control is usually transferred upon shipment to the customer. The amount of revenue to be recognised (transaction price) is based on the consideration expected to be received in exchange for goods, excluding amounts collected on behalf of third parties such as sales tax or other taxes directly linked to sales. If a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on their relative stand-alone selling prices. Revenue from product sales are recorded net of allowances for estimated rebates, cash discounts and estimates of product returns, all of which are established at the time of sale.

The consideration received by the group in exchange for its goods may be fixed or variable. Variable consideration is only recognised when it is considered highly probable that a significant revenue reversal will not occur once the underlying uncertainty related to variable consideration is subsequently resolved.

iv. Royalty income and profit share

The Royalty income and profit share earned through a License or collaboration partners is recognized as the underlying sales are recorded by the Licensee or collaboration partners. !VJ/

Notes to the consolidated financial statements for the year ended March 31, 2025

Revenue from contracts with customers (Continued)

v. Sales Return Allowances

The Group accounts for sales return by recording an allowance for sales return concurrent with the recognition of revenue at the time of a product sale. The allowance is based on Group's estimate of expected sales returns. The estimate of sales return is determined primarily by the Group's historical experience in the markets in which the Group operates.

vi. Dividends

Dividend is recognised when the Group's right to receive the payment is established, which is generally when shareholders approve the dividend.

vii. Rental income

Rental income from investment property is recognised in statement of profit or loss on a straight-line basis over the term of the lease except where the rentals are structured to increase in line with expected general inflation. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

viii. Contribution received from customers/co-development partners towards plant and equipment

Contributions received from customers/co-development partners towards items of property, plant and equipment which require an obligation to supply goods to the customer in the future, are recognised as a credit to deferred revenue. The contribution received is recognised as revenue from operations over the useful life of the assets. The Group capitalises the gross cost of these assets as the Group controls these assets.

ix. Interest income and expense

Interest income or expense is recognised using the effective interest method.

m. Government grants

The Group recognizes government grants only when there is reasonable assurance that the conditions attached to them will be complied with, and the grants will be received. Government grants received in relation to assets are recognised as deferred income and amortized over the useful life of such asset. Government grants, which are revenue in nature are either recognised as income or deducted in reporting the related expense based on the terms of the grant, as applicable.

n. Income taxes

Income tax comprises of current and deferred income tax. Income tax expense is recognised in statement of profit or loss except to the extent that it relates to an item recognised directly in equity in which case it is recognised in other comprehensive income. Current income tax for current year and prior periods is recognised at the amount expected to be paid or recovered from the tax authorities, using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes.

Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred income tax assets and liabilities are recognised for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when:

• taxable temporary differences arising on the initial recognition of goodwill;

• temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss at the time of transaction;

• temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred tax assets (DTA) include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is iikely to give future economic benefits in the form of availability of set off against future income tax liability.

Deferred income tax assets and liabilities are measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as income or expense in the period that includes the enactment or substantive enactment date. A deferred income tax assets is recognised to the extent it is probable that future taxable income will be available against which the deductible temporary timing differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries where it is expected that the earnings of the subsidiary will not be distributed in the foreseeable future. The Group offsets income-

tax assets and liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used.

o. Borrowing cost

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset.

Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

p. Earnings per share

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period adjusted for treasury shares held. Diluted earnings per share is computed using the weighted-average number of equity and dilutive equivalent shares outstanding during the period, using the treasury stock method for options and warrants, except where the results would be anti-dilutive.

q. Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components, and for which discrete financial information is available. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Chairperson and Managing Director of the Company is responsible for allocating resources and assessing performance of the operating segments and accordingly is identified as the Chief Operating Decision Maker (CODM). All operating segments' operating results are reviewed regularly by the CODM to make decisions about resources to be allocated to the segments and assess their performance.

r. Leases

{i) The Group as lessee:

The Group assesses whether a contract contains a lease, at the inception of contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assesses whether a contract conveys the right to control use of an identified asset, the Group assesses whether:

• The contract involves use of an identified asset;
• The Group has substantially all the economic benefits from the use of the asset through the period of lease; and
• The Group has the right to direct the use of an asset.

At the date of commencement of lease, the Group recognises a Right-of-use asset ("ROU") and a corresponding liability for all lease arrangements in which it is a lessee, except for leases with the term of twelve months or less (short term leases) and low value leases. For short term and low value leases, the Group recognises the lease payment as an operating expense on straight line basis over the term of lease.

Certain lease agreements include an option to extend or terminate the lease before the end of lease term. ROU assets and the lease liabilities includes these options when it is reasonably certain that they will be exercised.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right-of-use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e., higher of fair value less cost to sell and the value-in-use) is determined on individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate explicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile· of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right-of- use assets if the Group changes its assessment if whether it will exercise an extension or a termination of option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and the lease payments have been classified as financing cash flows.

(ii) The Group as a Lessor:

Leases for which the Group is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer ----~ubstantially all the risk and rewards of ownership to the lessee, the contract is classified as finance lease. All er leases are q..o'b- C o~t. ified as operating lease. Or~ t\M/l't-:

0

BIOCON LIMITED

Notes to the consolidated financial statements for the year ended March 31, 2025

s. Operating cycle

The Group classifies an asset as current asset when:

• it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
• it holds the asset primarily for the purpose of trading;
• it expects to realise the asset within twelve months after the reporting period; or
• the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when -

• it expects to settle the liability or consume it, in its normal operating cycle;
• it holds the liability primarily for the purpose of trading;
• the liability is due to be settled within twelve months after the reporting period; or
• it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents The Group's normal operating cycle is twelve months.

t. Exceptional items

Exceptional items refer to items of income or expense within the statement of profit and loss from ordinary activities which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance of the Group.

u. Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Group w.e.f. April 1, 2024. The Group has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial statements.

Code on Social Security, 2020

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. ~ ..\Ml,~

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

3. Property. plant and equipment and Capital work-in-progress

Particulars	Land	Buildings	Leasehold improvements	Plant and equipment	Research & development equipment	Furniture and fixtures	Vehicles	Total	Capital work-in progress
	[Refer note (a)]			[Refer note (cl]					[Refer note (d)]
Gross carrying amount
At April 01, 2023	2,918	20,814	2,518	90,908	3,910	2,259	185	1,23,512	25,875
Additions	434	2,255	168	6,864	453	201	so	10,425	24,249
Disposals/tra nsfe'rs	-	(11)	-	(1,575)	(49)	(38)	(34)	(1,707)	(10,425)
Other adjustments
- Foreign currency translation adjustment	21	112	-	254	-	1	-	388	153
At March 31, 2024	3,373	23,170	2,686	96,451	4,314	2,423	201	1,32,618	39,852
Additions	315	3,114	933	17,129	140	242	110	21,983	22,928
Disposals/transfers	-	(4)	-	(996)	(132)	(2)	(71)	(1,205)	{21,983)
Other adjustments
- Foreign currency translation adjustment	38	212	-	476	-	3	1	730	220
At March 31, 2025	3,726	26,492	3,619	1,13,060	4,322	2,666	241	1,54,126	41,017
Accumulated depreciation
At April 01, 2023 .	-	6,018	100	40,761	2,495	1,282	87	50,743	-
Depreciation for the year	-	866	131	7,410	256	240	26	8,929	-
Disposals	-	(5)	-	{1,328)	(49)	(37)	(22)	(1,441)	-
Other adjustment.s
- Foreign currency translation adjustment	-	27	-	178	-	1	-	206	-
At March 31, 2024	-	6,906	231	47,021	2,702	1,486	91	58,437	-
Depreciation for the year	-	919	180	7,766	274	258	19	9,416
Disposals	-	(2)	-	(963)	(104)	(2)	(31)	(1,102)	-
Other adjustments
- Foreign currency translation adjustment	-	57	-	234	-	2	-	293	-
At March 31, 2025	-	7,880	411	54,058	2,872	1,744	79	67,044	-
Net carrying amount
At March 31, 2024	3,373	16,264	2,455	49,430	1,612	937	110	74.181	39,852
At March 31, 2025	3,726	18,612	3,208	59,002	1,450	922	162	87,082	41,017 ~0

(b) The Group capitalises its cost of general borrowings at the rates mentioned in note 14 and note 19. Borrowing costs capitalised during the year amounted to Rs. 4,102 (March 31, 2024 - Rs. 2,753). { (~{( \ ,¥

(c) Pi~uipment include computers and office equipment. (J'.:>

gress as on March 31, 2025, mainly comprises new biopharmaceutical and research manufacturing units. \ • •• ';--<~•

lty on certain property, plant and equipment, [refer note 14] --... ••• 1

ngene's business expanded into manufacturing and following a technical evaluation, it revised the estimated useful life of its manufacturing assets, which include Plant and Machinery and Equipment, effective from April 1, this change in accounting estimate, the depreciation expense for these assets has decreased by Rs. 206 for the year ended March 31, 2025.

, . ... -~ - '-i '\ ' (_'.) I'.

•

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

3. Property. plant and equipment and Capital work-In-progress (continued I

Capital work in progress ageing schedule :-

		Amount in CWIP for a period of
Particulars	Less than 1 year	1-2 years	2-3 years	More than 3 ears	Total
Projects in progress	17,967	15,281	3,509	4,260	41,017
At March 31, 2025	17,967	15,281	3,509	4,260	41,017
Projects in progress	20,614	6,538	6,936	5,764	39,852
At March 31, 2024	20,614	6,538	6,936	5,764	39,852

(i) There are no capital work-in-process which is temporarily suspended as at March 31, 2025 and as on March 31, 2024.

(ii) The on-going projects with respect to Generics segment are subject to various phases of validations and related approvals. There are no pre-determined completion dates for these on-going projects as these are dependent on obtaining regulatory approvals.

The details of the projects whose completion date is overdue in respect of Biosimilars and Research segment are as below:

	To be completed in
Projects in progress	less than 1 ear	1-2 years	2-3 years	More than 3 ears	Total
Project 2	2,513				2,513
Project 3*
Project 5	3,876				3,876
Project 9	13	3	40	33	89
Project 10•
Project 11 •
At March 31, 2025	6,402	3	40	33	6,478
Project 2	2,750				2,750
Project 3	6,563				6,563
Project 5	2,892				2,892
Project 9	3	40	33		76
Project 10	97	1			98
Project 11	502	21			523
At March 31, 2024	12,807	62	33		12,902

*Project 3, 10 and 11 are capitalised during the year

BIOCON LIMITED

Notes to the consolidated financial statements for the year ended March 31, 2025

(All arnounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

4 (a). Intangible assets

			Other intangible assets
Particulars	Goodwill I	Computer software	Product related intangibles (including Licences, Brands and Patents)	Total	Intangible assets under development
Gross carrying amount
At April 01, 2023	161,362	1,706	63,623	65,329	47,295
Additions		1,395	8,709	10,104	3,479
Assets acquired through Business Combination	69			-
Disposals/transfers		(1)	(9)	(10)	(7,291)
impairment during the year [refer note 32l Other adjustments			(21)	(21)	(3,924)
• Foreign currency translation adjustment
At Marth 31, 2024	2,293 163,724	1 3,101	1,097 73,399	1,098 76,500	522 40,081
Additions
Assets acquired through Business Combination	I	467 -	709	1,176	2,311
Olsposals/transfers		(8)	-	(8)
Impairment during the year [refer note 32]			(86)	(86)	(270) (6)
Other adjustments
• Foreign currency translation adjustment	4,133	2	1.516	1,518	1,951
At March 31, 2025	167,857	3,562	75,538	79,100	44,067
Accumulated amortisation
At April 01, 2023		1,141	6,224	7,365
Am ortisation for the year		347	5,948	6,295
Disposal		(10)		(10)
Impairment during the year [refer note 32]	-	I	(9)	(9)
Other ~djustments
• Foreign currency translation adjustment	'	1	72	73
At March 31, 2024		1,479	12,235	13,714
Amortisation for the year		467	6,392	6,859
Disposal		I (6)	(6)	(12)
Impairment during the year [refer note 32]
Other adjustments
• Foreign currency translation adjustment	'	1	(114)	(113)
At Ma~h 31, 2025		1,941	18,507	20,448 ,
Net carrying amount
At March 31, 2024	163,724 1 •	1,622	61,164	62,786 I	40,081
At March 31, 2025	167,857	1,621	57,031	58,§S2.L.	44,067

(a) Borrowing cost capitalised during the year amounted to Rs 1,782 (March 31, 2024: Rs 2,136). (b) Refer note 43 for impairment assessment of Goodwill. «-

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

4 la). Intangible assets under development {continued)

Intangible assets under development ageing schedule:-

		Amount in Intangible assets under development for a period of
Particulars	Less than 1 ear	More than 1-2 years 2-3 years
Projects in progress	3,250	4,033	34,302	2,482	44,067
At March 31, 2025	3,250	4,033	34,302	2,482	44,067
Projects in progress	6,861	32,588	149	483	40,081
At March 31, 2024	6,861	32,588	149	483	40,081

(i) There are no intangible assets under development which are temporarily suspended as at March 31, 2025 and as at March 31, 2024.

(ii) The intangible assets under development includes intangibles for generics amounting to Rs .146 which are subject to various phases of trial run and related approvals. There are no pre-determined completion dates for these assets as these are dependent on obtaining regulatory approvals.

The details of the projects whose completion date is overdue in respect of Biosimilars segment are as below:

		To be completed in
Particulars	Less than 1 year	1-2 years	2-3 years	More than 3 years	Total
Pro1ects m progress
Project 1	6,962				6,962
Project 2	5,325				5,325
At March 31, 2025	12,287				12,287
Projects in progress
Project 1		6,835			6,835
Project 2		5,195			5,195
At March 31, 2024		12,030			12,030

4 (bl. Right-of-use assets

	Right-of-use assets
Particulars	Land	Buildings	Vehicles	Total
Gross carrying amount
At April 01, 2023	374	2,517	120	3,011
Additions		4,927	273	5,200
Disposals		(1,745)	(7)	(1,752)
At March 31, 2024	374	5,699	386	6,459
Additions		798	349	1,147
Disposals		(493)	(153)	(646)
At March 31, 2025	374	6,004	582	6,960
Accumulated depreciation
At April 01, 2023	18	364	47	429
Amortisation for the year	38	358	68	464
Disposals/transfer		(174)	(5)	(179)
At March 31, 2024	56	548	110	714
Amortisation for the year	7	278	310	595
Disposals/transfer		(321)	(70)	(391)
At March 31, 2025	63	505	350	918
Net carrying amount
At March 31, 2024	318	5,151	276	5,745
At March 31, 2025	311	5,499	232	6,042

(All amounts are in lndlan Rupees Milllon, except share data and per share data, unless otherwise stated)
	March 31. 2025	March 31. 2024
s. Non-current investments
I. Quoted equity instruments at fair value through other comprehensive Income
Vaccinex Inc., USA-1,425 (March 31, 2024-1,425} Common Stock, par value USD 0.0001 each		1
Equillium Inc., USA - 2,316,134 (March 31, 2024 - 2,316,134) Common Stock, par value USD 0.001 each	88	417
Bicara Therapeutics Inc. : 5,523,897 (March 31, 2024-5,523,897) equity shares of USO 0.0001 each [refer note 44]	6,149	5,877
Total quoted Investments In equity Instruments	6,237	6,295
II. Unquoted instruments at fair value through other comprehensive income
lmmuneel Therapeutics Private limited - 2,020 (March 31, 2024: 2,020) equity shares of Rs 10 each (refer note (i.) below]	247	229
HR Kaveri Private Limited -4,922,663 (March 31, 2024: 4,922,663) Equity shares of Rs. 10 each	49	49
Total unquoted investments In equity Instruments	296	278
Ill. Unquoted equity Instruments at fair value through profit or loss
In others:
Energon KN Wind Power Private Limited -41,708 (March 31, 2024-41,708) equity shares of Rs 10 each	1	1
Less: Provision for decline, other than temporary, in the value of non-current investments	(1)	(1)
Four Ef Renewables Private Limited - 287,474 (March 31, 2024 -287,474) equity share of Rs. 100 each	29	29
02 Renewable Energy II Private Limited - 858,000 (March 31, 2024: 858,000) equity shares of Rs 10 each	9	9
Hlnduja Renewables Two Private Limited -5,916,166 equity shares (March 31, 2024-5,916,166) equity share of Rs. 10 each	59	59
Ampyr Renewable Energy Resources Private Limited - 4,365,687 (31 March 2024: 4,365,687} equity shares of Rs. 10 each	43	43
Indian Foundation for Quality Management - 7,500,000 (March 31, 2024: Nil) Equity shares of Rs. 10 each	75
Less: diminution in the value of investments	(75)
Total unquoted investments in equity instruments	140	140
IV. Unquoted shares/ instruments at fair value through profit or loss
In others:
Energon KN Wind Power Private Limited -15,888 (March 31, 2024 -15,888) compulsorily convertible preference shares, par value Rs 100 each	1	1
Less: Provision for decline, other than temporary, in the value of non-current investments	(1)	(1)
02 Renewable Energy II Private Limited -20,020 (March 31, 2024: 20,020) 0.01% compulsory convertible debentures of Rs. 1,000 each (refer note (iii} below]	20	20
Four Ef Renewables Private Limited - 574,947 (March 31, 2024 - 574,947 } 0.001% compulsorily convertible preference shares of Rs. 100 each {refer note (ii) below]	57	57
	77	77
Ampyr Renewable Energy Resources Private Limited - 8,731,375 (31 March 2024: 8,731,375) compulsory convertible preference shares of Rs. 10 each [refer note(iv) below]	87	87
Less: diminution in the value of investments	(40)	(40)
Total unquoted investments In shares/ Instruments	124	124
V. Investments in Certificates af deposits carried at amortized cost
Others:
Inter corporate deposits with financial institutions •		4 4
Total unquoted investments In deposits
Total non-current lnvestmenu	6797	6841
Aggregate value of quoted investments	6,237	418
Aggregate value of unquoted investments	602	6,465
Aggregate amount of impairment in value of investments	42	42

(i) During the year ended March 31, 2021, Syngene invested Rs. 100 in lmmuneel Therapeutics Private Limited. During the ye-ar ended March 31, 2022, additional funding from external investors were received resulting in a dilution of Syngene's equity interest. The gain on fair valuation from Rs. 100 to Rs. 214 is recognised in Other comprehensive income. During the year ended 31 March 2023 and March 31, 2024, Syngene based on a fair valuation recorded a fair value increase In its investment carrying value by Rs. 109 and a fair value decrease of Rs. 94 respectively. Further, during the year ended March 31, 2025, Syngene recorded a fair value increase of Rs. 18.

(Ii) Terms of conversion: 1 compulsory convertible preference share of face value Rs. 100/- each will convert to 1 equity share of face value Rs. 100/- at end of the tenure of 20 years from allotment.

{iii) Terms of conversion: 1 compulsory convertible debentures of face value Rs. 1000/- each will convert to 1 equity share of face value Rs. 100/- at end of the tenure of 20 years from allotment.

(iv) Terms of conversion: 1 compulsory convertible preference share of face value Rs. 10/- each will convert to 1 equity share of face value Rs. 10/- at end of the tenure of 20 years from allotment.

(v) The company designated these investments as equity instruments at FVOCI because these investments that the company intends to hold for the long term for strategic purpose. No strategic investments were disposed of during the year ended March 31, 2025 and there were no transfers of any cumulative gains or loss within equity relating to these Investments.

• Inter corporate deposits with financial institutions yield fixed interest rate.

The Group's exposure to credit and currency risks, and loss allowances are disclosed in note 36.

§. Other flnandal assets

BIOCON LIMITED

Notes to consolidated flnanclal statements for the year ended March 31, ZOZS

	(I) Non-current
--	-----------------	--

Deposits Contingent consideration receivable [refer note 36(D)] Bank deposits with maturity of more than 12 months Other receivables

(Ill Current Inter corporate deposits with financial institutions • Other receivables (considered good - unsecured)

• Inter corporate deposits with financial institutions yield fixed interest rate. The Group's exposure of credit and currency risks, and loss allowances are disclosed in note 36.

(THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK)

March 31. Z0ZS

March 31, 2024

3,595 964

BIOCON LIMITED

Notes to consolidated flnanclal statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

.7. Deferred tax balances	March 31, 2025	March 31, 2024
Deferred tax assets (net)
Deferred tax liabilities (net)	2,577	3,173
Total	(3,577)	(3,915)
	(1,0001	(7421
Deferred tax llabilitles
Property, plant and equipment and intangible assets	3,485	3,742
Intangible assets	3,941	2,852
Goodwill	4,715	894
Derivative instruments	278	507
Deferred consideration		215
Others	(387)
Gross deferred tax llabillties	12,032	8,210
Deferred tax assets
Provision for employee benefits	957	607
Allowance for doubtful debts	56	26
Other deductible expenses	175	78
MAT credit entitlement	2,975	3,419
Deferred revenue	88	80
Carry-forward losses	6,082	2,405
Others	699	853
Gross deferred tax assets	11,032	7,468
Deferred tax llabllllies (net) [refer note 38 (d)]	11,0001	!7421
8. Other assets
(Unsecured considered good, unless otherwise stated)
(a) Non-current
Capital advances	1,937	2,304
Duty drawback receivable	128	90
Balances with statutory/ government authorities	2,410	1,793
Prepayments	282	93
	4 757	4 280
(b) Current
Balances with statutory/ government authorities	3,805	4,516
Advance to suppliers	1,770	1,064
Prepayments
	1,899 7 474	1,571 7151
9. Inventories.	March 31, 2025	March 31, 2024
Raw materials, including goods-in-bond •	9,679	8,366
Packing materials	4,299	2,798
Traded goods	8,949	15,895
Finished goods	9,152	8,234

* Inventories includes goods in-transit Rs. 1,575 (March 31, 2024 - Rs 4,236) For details of security on certain inventories [refer note 19]

The Group considers estimated shelf life of products, planned product discontinuances, price changes, ageing of inventory and introduction of competitive new products, to the extent each of these factors impact the Group's business and markets, in determining the provision for slow moving, obsolete and other non-saleable inventory. Pursuant to the take-over of the Viatris's biosimilar business and completion of first anniversary since the exit from the transition service agreement, BBL and its subsidiaries re-assessed the provision for inventory of finished goods, raw material and semi-finished goods. This assessment resulted into a release of provision of Rs. 650 during the year ended March 31, 2025 and the credit has been accounted for as a change in estimate within 'Changes in inventories of traded goods, finished goods and work-in-progress' and 'Cost of raw materials and packing materials consumed' in consolidated statement of profit and loss.

17,232 14,146 49 311 49439

March 31. 2025 March 31, 2024

Including the impact of change in estimates as explained in above para, net movement in provision for stock obsolescence, inventory write-off resulted in gain of Rs. 753 (March 31, 2024: expense of Rs. 565). These were recognised as an income/expense during the year and included in 'changes in inventories of traded goods, finished goods and work-in-progress' and 'Cost of raw materials and packing materials consumed' in consolidated statement of profit or loss.

1.0. cwcc:nt ,n_,~stmrri.l:5

Work-in-progress

Quoted- Investments at fair value through profit or loss:
(a) Investment in mutual funds	4,458	3,047
(b) Investment in lnvivyd Inc (formerly, 'Adagio Therapeutics lnc')-294,000 (March 31, 2024- 294,000) Common Stock, par value USD 0.0001 each	------- 15	109
Total current investments	=====4=47=3==	3 156
Aggregate market/ fair value of quoted investments	4,473	3,156
Aggregate value of unquoted investments
The Group1 s exposure to credit and currency risks, and loss allowances are disclosed in note 36.

BIOCON LIMITED

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in lndlan Rupees MIiiion, except share data and per share data, unless otherwise stated)

11. Trade receivables

11. Trade receivables	March 31, 2025	March 31. 2024
(a) Trade Receivables considered good - Unsecured [refer note (a) below)	54,879	62,306
(b) Trade Receivables - credit impaired	627	646
	55,506	62,952
Allowance for expected credit loss	(627)	(646)
Net trade rc:c:eJ~bfe.5	54 879	62,306

The Group's exposure to credit and currency risks, and loss allowances are disclosed in note 36.

a) During the current year, the Group has availed invoice purchase facility from the banks which met the derecognition criteria since the Group had transferred substantially all the risks and rewards of ownership over such receivables as the factoring arrangement represents a true sale and is without recourse to the Group, Accordingly, as at March 31, 2025, Rs, 7,074 has been derecognized from trade receivables.

				Ourlbndln5-for ro.Uowtng pe.rlod.s from due date of payment_
Trade recelvables ageing schedule:	Unbilled	Not overdue	Less than 6 months	&months -1 year	1-2 years	2-3years	More than 3 years	Total
Undisputed trade receivables - considered good	1,568	49,665	14,670	3,132	1,307	29		70,371
Undisputed trade receivables - credit impaired			114	83	130	251	49	627
Al March 31, 2025	1568	49 66,	147~	3 215	1,437	280	49	70,998
Less: Provision for charge backs/ discounts/ rebates/ incentives settled through issuance of credit note Less: Allowance for expected credit loss								(15,492) (627)
								54879
Undisputed trade receivables - considered good	961	41,804	32,520	8,121	437	2		83,845
Undisputed trade receivables - credit impaired		133	77	25	360	7	44	646
Al March 31, 2024	961	41917	32 596	8146	797	9	44	84 491
Less: Provision for chargebacks /discounts/ rebates/ incentives settled through issuance of credit note Less: Allowance for expected credit loss								(21,539) (646)
								62,306
12. Cash and bank balances							March 31, 2025	March 31. 2024
Cash and cash equivalents
Balances with banks:
On current accounts							19,488	11,636
On unpaid dividend account							4	2
Deposits with banks with original maturity of less than 3 months							12,779	698
Total cash and cash equivalents							32,271	12,336
Bank balances other than cash and cash equivalents
Deposits with banks with original maturity of more than 3 months but less than 12 months							8,907	10,248
Margin money deposit [Refer note (a) below]							24	3
Total other bank balances							8,931	10,251
Tomi Col.Sh and bank b;;ilance,							41202	22,587
(a) Margin money deposits with carrying amount of Rs 24 (March 311 2024 - Rs 3) are subject to first charge against bank guarantees obtained.
(b) The Group has cash in hand which are not disclosed above since amounts are rounded off to Rupees million.

Notes to consolidated nnandal statements for the year ended March 31, 2025

(AU amounts are In Indian Rupees Million, Hcept share data and per share data, unless otherwise stated) 13{•). fgu!ty \$h11n, Cllpfl•I Authorised 1,250,00D,000 (March 31, 2024 - 1,250,00D,OOO) equity shares of Rs S each (March 31, 2024 - Rs S each) Issued, subscribed and fully pai~up 1,200,600,000 (March 31, 2024-1,200,600,000) equity shares of Rs S each (March 31, 2024- Rs S each) (I) Reconclllatlon of the shares outstanding at the beginning and at the end of the reporting year Equity shares At the beginning of the year Issue of shares March 31, 2025 No, of shares 1,20,06,00,000 March 31 2025 March 31 2024 6 250 6 250 6 003 6 003 March 31, 2024 Rs MIiiion No. of shares Rs Million 6,003 l,20,06,00,000 6,003

Outstanding at the end of the year (II) Terms/ rithts attached to equity shares

The Company has only one class of equity shares having a par value of Rs 5 per share. Each holder of equity sh.ires is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

In the event of liquidation of the Company, the holders of equity shares will be entltled to receive remaining assets of the Company, after distribution of all preferential amounts, rf any, The distribution will be in proportion to the number of equity shares heki by the shareholders,

t t:zo¹ o&¹ oo,ooo 6 003 1,20,06,00,000 6 003

(Ill) Details of shareholders holdlng more than 5% shares In \"fie Company

		March 31, 2025		March 31, 2024
	No. of shares	% holding	No. of shares	% holding
Equity shares of Rs 5 each fully pald
Kiran Mazumdar-Shaw	48,45,61,970	40.36%	48,45,81,970	40.36%
Glentec International Limited	23,72,11,164	19.76%	23,72,11,164	19.76%

As per records of the Company, including its register of shareholders/ members, the above shareholding represents both legal and beneficial ownerships of shares.

(iv) Shares reserved for issue under options

For details of shares reserved for issue under the sh.ire based payment plan of the Company, [refer note 30).

Particulars			Year ended March 31
	2025	2024	2023	2022	2021
Equity shares of Rs 5 each

(vi) Details of shares held by promoters

March 31, 2025			$\frac{1}{2} \left( \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2}$
CONTRACTOR Name of the promoter	No. of equity thares	% of Total Shares	% change during the year
Kiran Mazumdar Shaw	48,45,81,970	40.36%
Ravi Mazumdar	53,01,321	0.44%
Dev Mazumdar	9,29,721	0.08%
Glenter International Limited	23,72,11,164	19.76%
Total	72,80,24,176	60.64%	0.00%

March 31, 2024
Name of the promoter	No. of equity shares	% of Total Shares	% change during the year
Kiran Mazumdar Shaw	48,45,81,970	40.36%	0.70%
J M M Shaw		0.00%	$-0.70%$
Ravi Mazumdar	53,01,321	0.44%	STATE
Dev Mazumdar	9,29,721	0.08%
Glentec International Limited	23.72.11.164	19.76%
Total	72,80,24,176	60.64%	0.00%

13(b). Other equity

Securttles premium

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

General reserve

General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.

Retained earnings

The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the standalone financial statements of the Company and also consideri~g the requirements of the Act, Thus the amounts reported are not distributable in entirety.

SEZ re-Investment reserve

The SEZ re-investment reserve has been created out of profrt of eligible SEZ units in terms of the provisions of section 10AA(ll(ii) of the Income-tax Act, 196L The reserve has been utilised for acquiring new plant and machinery for the purpose of its business in terms of section 10AA(2) of the Income-tax Act, 1961.

Share based payment reserve

The Group has established various equity settled share-based payment plans for certain categories of employees of the Group. Also refer note 30 for further details on these plans.

Treasury shares

Own equity fnstruments that are reacquired (treasury shares) by the ESOP trusts of the Group are recognised at cost and disclosed as deducted from equity,

Forel1n currency translation reserve

Exchange differences relating to the translation of the results and net assets of the Group's foreign operations from their functional currencies to the Group's reporting currency (i.e. Indian Rupees) are accumulated in the foreign currency translation reserve. This also includes effective portion of Group's net investment in foreign operations.

Other Items of other comprehensive income

Other Items of other comprehensive income represents mark to market gain or loss on financial assets classified as FVTOCI and re-measurements of the defined benefits plan.

DelHinture redemption reserve

The Group had Issued Redeemable Non-Convertible Debentures ("NCO") and Redeemable Optionally Convertible Debentures ("OCO") in prior years. As per the provisions of the Companies Act, 2013, debenture redemption reserve Is created out of profrts available for payment of dividend.

Capita! redemption reserve

The Group had redeemed intercompanv Non Convertible Redeemable Preference Shares in prior years and as per the provisions of the Companies Act, 2013, a sum equal to the nominal value of the shares redeemed is transferred to the capital redemption reserve.

Cuh flow hedging reserves

The cash flow hedging reserve represents the cumulalive effective portion of gains or losses (net of taxes, if any} arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges.

Blocon Limited Notes to consolldated financial statements for the year ended Ma ... ch 31, 2025

(All amounts are In lndlan Rupees Million, except shal"e data and per shal"e data, unless otherwise stated)

'14, Non--w-rnmt bonowlngs:	March 31 2025	March 31 2024
Loans from banks (secured)
Term loan [refer note (a), (b), (c), (d), (e), [f), (h), (m) and [n) below]	36,112	100,833
Redeemable Non-Convertible Debentures ("NCO") [refer note (k) and (I) below]	20,913	18,324
Loans from banks (unsecured)
Term loan [refer note (g) and (o) below]	2,950	1,70B
Other loans (secured)
Senior Secured Notes 2029 ("Notes") (refer note (ii below]	66,954
Other loans and advances (unsecured)
Redeemable Optionally Convertlble Debentures ("OCD") [refer note U) below]	16,079	14,939
	143,008	135,804
Less: Current maturities disclosed in "Current borrowings" [refer note 19]	(18,954)	(6,480)
	124 054	129 324
The above amount Includes
Secured borrowings	123,979	119,157
Unsecured borrowings	19,029	16,647
Current maturities disclosed in "Current borrowings" [refer note 19]	(18,954)	(6,480)
Net amount	124 054	129 324

(a) The Company has external commercial borrowing (ECB) from Bank repayable in 3 yearly instalments commencing from June 2025 and carry interest@ SOFR + 1.75% per annum , The loan is secured by exclusive charge on the property, plant and equipment created out of the term loan facility. The Company has entered into interest rate swap converting the floating rate to fixed rate of interest. carrying value of the loan as at March 31, 2025 amounts to Rs 2,136 (March 31, 2024: 2,084).

(b) Biocon Biosphere limited ("BBSL") has external commercial borrowing (ECBJ from Bank repayable in 3 yearly instalments commencing from June 2025 and carry interest @ SOFR + 1.75% per annum. The loan is secured by first priority pari passu charge on the plant and machinery of the facility for the manufacture of pharmaceuticals. BBSL has entered into interest rate swap to convert floating rate to fixed rate. Carrying value of the loan as at March 31, 2025 amounts to Rs 4,271 (March 31, 2024: 4,167).

(c) During the year ended March 31, 2019, Biocon Biologics Limited ("BBL") had obtained an external commercial borrowing facility of USD 75 million from MUFG Bank Limited. This loan is repayable in 3 annual instalments commencing from April 2024 and carries an interest rate of SOFR + 1.26% p.a. The term loan facility is secured by first priority pari-passu charge on the plant and machinery of the proposed facility for the manufacturing of pharmaceuticals. Carrying value of the loan as at March 31, 2025 amounts to Nil (March 31, 2024: Rs. 6,251). During the year ended March 31, 2025, BBL has pre-dosed the entire amount outstanding.

(d) During the year ended March 31, 2021, BBL had obtained a Term loan facility from The Hongkong and Shanghai Banking Corporation Limited amounting to Rs 3,500 repayable in 2 equal annual instalments commencing from April 2024. Term loan carries an interest rate of 3 Months T Bill+ 2,3% p.a. and are secured by first pari-passu charge on the present and future of movable property, plant and equipment of the BBL Carrying value of the loan as at March 31, 2025 amounts to Nil (March 31, 2024: Rs. 3,500). During the year ended March 31, 2025, BBL has pre-dosed the entire amount outstanding.

(e) During the year ended March 31, 2023, the Biosimilars Newco Limited ('BNCL', subsidiary of BBL) has entered into a U5D 1.2 Billion long-term syndicated loan facility agreement with consortium of lenders for a tenure of 5 years. The term loan is repayable in quarterly instalments starting after 30 months of the execution of the agreement and carries an interest rate of SOFR + margin of 1.95¾ p.a to 1.35% p.a. The loan is secured by first pari• passu charge movable property, plant and equipment of BBL, Biocon Sdn. Bhd., Malaysia. ("Biocon Malaysia"), Biocon Biologics UK ltd ("Biocon UK"), Biosimilars Newco Limited and Biosimilars collaboratlon Ireland limited. Further the loan is also secured by corporate guarantee by BBL, Biocon Malaysia, Biocon UK and Biosimilars Collaboration Ireland limited. BNCL has pre-paid USD 950 million (March 31, 2024: USD 250 million) during the year. The carrying value of the loan as at March 31, 2025 amounts to Nil (March 31, 2024: 77,699), net-off unamortised debt issuance cost of Nil (March 31, 2024: 1,474) .. During the year ended March 31, 2025, BNCL has pre• closed the entire amount outstanding.

(fl During the year ended March 31, 2022, Biocon UK had obtained a term loan facility of USO 75 million from The Hongkong and Shanghai Banking Corporation limited for a tenure of 5 years, The term loan is repayable over the period of 4 years and carries an interest rate of 1 month SOFR + 1.11% p.a. and are secured by first pari-passu charge on the present and future Plant and Machinery of Biocon Malaysia, Carrying value of the term loan as at March 31, 2025 is Nil (March 31, 2024: 5,428). During the year ended March 31, 2025, Biocon UK has pre-closed the entire amount outstanding.

(g) During the year ended March 31, 2022, Biocon Biologics UK Limited ("Biocon UK") (formerly "Biocon Biologics limited") had obtained a term loan facility of USO 25 million from The HDFC Bank Limited for a tenure of 5 years. The term loan is repayable in 5 annual installments starting from the end of year 1 and carries an interest rate of 3 months 50FR + 1.26% p.a. Carrying value of the term loan as at March 31, 2025 is Nil (March 31, 2024: 1,708). During the year ended March 31, 2025, Biocon UK has pre<losed the entire amount outstanding.

(h) Syn gene has entered into foreign currency term loan agreement dated March 30, 2021 to borrow USO 20 million (Rs. 1,644) term loan facility. The facility is borrowed to incur capital expenditure at Bengaluru, Hyderabad and Mangaluru premises of Syngene and was used for this specific purpose, The facility carries an interest rate of 6M SOFR + 1.17% and are to be paid in three instalments of 15%, 25¾ and 60% from end of 3 years, 4 years and 5 years respectively from the date of origination. The facility is secured by first priority pari passu charge on property, plant and equipment (movable plant and machinery) and second charge on current assets of Syngene.

(i) During the year ended March 31, 2025, BBL through its wholly owned step-down subsidiary, Biocon Biologics Global PLC, has raised Rs. 66,763 (USD 800 million) by allotment of US dollar denominated senior secured notes (the "Notes") at issue price.of 99.041%. The Notes bear interest at a rate of 6.67% per annum and will mature in October 2029. Interest on the Notes is payable semi-annually in April and October of each year. The Notes are listed on Singapore Exchange Securities Trading limited (SGX-ST). The Notes are secured by first priority lien over all of the (i) capital stock of the Biocon Biologics Global PLC held by Biocon Biologics UK limited (ii) capital stock of Biosimilars Collaboration Ireland Limited held by Biocon Biologics UK Limited and (iii) capital stock of the Biosimilars Newco Limited held by Biocon Biologics Limited and Biocon Biologics UK Limited and also secured by corporate guarantee by Biocon Biologics Limited, Biocon Biologics UK Limited, Biosimilars Newco Limited, Biosimilars Collaboration Ireland Limited and Biocon Sdn Bhd . Funds raised through the Notes is utillsed to refinance the existing term loans. Carrying value of the Notes as at March 31, 2025 amounts to Rs. 66,954 (March 31, 2024: Nil)

U) BBL had entered into an agreement with Goldman Sachs India AIF Scheme-l('lnvestor') whereby the Investor has infused Rs,11,250 against issuance of Optionally Convertible Debentures. The debentures are issued for a tenor of 61 months, maturing on January 2026, are unsecured, redeemable at par and carry a conversion option at any time during the tenor at the option of the investor. It also bears a coupon rate of 5% per annum payable on compounded and cumulative basis only on redemption. During the year ended March 31, 2022, BBL had entered into amendment to the terms of OCD agreement which provides for redemption amount INR equivalent of USD 153.23 million with reference to rate published by RBI for conversion of USO to INR one day prior to redemption. This resulted in the modification of the compound financial instrument and OCD is classified as financial liability from the modification date.

(kl During the year ended March 31, 2023, the Company had issued 107,000 redeemable Non-Convertible Debentures (NCD) in 3 series each having a face value of Rs 1,00,000 with a minimum return of 12% per annum plus agreed variable coupon payable upon redemption. The variable coupon is linked to the equity share price of a subsidiary. Tenure of the NCD is 5 years from the date of allotment or earlier based on put option terms requiring the company to provide exit to the lender if exit terms do not occur by the specified date in the agreement. The agreement has drag along rights allowing the lender to seek redemption of NCDs if the put option as described in note 16 is exercised. The NCD are secured by way of pledge over 3B,113,557 equity shares of a subsidiary held by the Company. The NCD proceeds were utilised for repayment of mezzanine borrowing which was raised for investing in the subsidiary.

(I) During the year ended March 31 2024, the Company has issued 50,000 redeemable Non-Convertible Debentures (NCD) having a face value of Rs 1,00,000 with a minimum return of 12% per annum plus agreed variable coupon payable upon redemption. The variable coupon is linked to the equity share price of a subsidiary, Tenure of the NCD is 4 years from the date of allotment or earller based on put option terms requiring the company to provide exit to the lender if exit terms do not occur by the specified date in the agreement. The agreement has drag along rights allowing the lender to seek redemption of NCDs if the put option as described in note 16 is exercised .. The NCD are secured by way of pledge over 17,810,073 equity shares of a subsidiary held by the Company. The NCO proceeds were utilised for repayment of mezzanine borrowing which was raised for investing in the subsidiary.

(m) During the year ended March 31, 2025, one of the subsidiaries of BBL has raised funds through new syndicate facility amounting to Rs. 26,705 (USO 320 million). This facility is for a tenure of 5 years with repayment beginning after 24 months and carries interest rate of SOFR+l.75% margin per annum payable on quarterly basis. The new syndicate facility is secured by hypothecation over tangible moveable fixed assets of Biocon BIOiogics Limited and is also secured by corporate guarantee by Biocon Biologics Limited, Biocon Biologics UK Limited, Btosimilars Newco Limited, Biosimilars Collaboration Ireland Limited and Biocon Biologics Global PLC. Funds raised through the new syndicate facility is utilised to refinance the existing term loans. carrying value of the loan as at March 31, 2025 amounts to Rs. 26,972 (March 31, 2024: Nil)

(n) During the year ended March 31, 2024, Biocon Generics Inc. ('BGl'J had entered into a term loan facility of USO 20 million from Mizuho bank. This loan is repayable in 3 annual instalments commencing from February 2027 and carries an interest rate of SOFR + 1.80% p.a. The term loan facility is secured by first priority pari-passu charge on the plant and machinery of the proposed facility for the manufacturing of pharmaceuticals carrying value of the loan as at March 31, 2025 amounts to Rs 1,709 (March 31, 2024: 662),

(o) During the year ended March 31, 2025, BBL has obtained a term loan facility from The Federal Bank repayable in six quarterly instalments commencing from December 2025. The loan carries an interest rate of B 50% p.a. The outstanding value of loan as on March 31, 2025 is Rs. 2,950 (March 31, 2024: Nil)

(p) The Group has met all the covenants under these arrangements as at March 31, 2025 and March 31, 2024 (q) The Group's exposure to liquidity, interest rate and currency risks are dlsdosed in note 36.

Blocon limited

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are In Indian Rupees Million, except share data and per share data, unless otherwise stated)

1s. Leases

The Group has entered into lease agreements for use of land, buildings and vehicles which expires over a period ranging upto the year of 2117. Gross payments for the year aggregate to Rs. 697 (March 31, 2024: Rs. 562).

The following is the movement in lease liabilities:

Short-term lease payment [refer note (i) below)

Total

Particulars	land	BulldinJJ	Vehldes	Totaif
Balance at April 01, 2023		2,400	81	2,481
Additions during the year		3,252	40	3,292
Finance cost accrued during the year		260	9	269
Deletions			(9)	(91
Pavmenl of lease liabilities		(5141	(48)	(S'21
Balance at Much 31, 2024		5,398	73	5,471
Additions during the year		1,238	33	1.,271
Finance cost accrued during the year		411	u	422
Deletions		(407)		(407)
Payment of lease liabilities		(643)	(49}	/692)
Ba.Ian~ at March 31, 2025		S,997	611	6,065
The following is the break-up of current and non-current lease liabilities:			March 31, 2025	March 31, ZDZ4

Non current lease liabilities	5,391	4,924
Current lease liabilities	674	547
	6065	5471
The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted basis:
Less than one year	797	868
One to five years	3,197	2,366
More than five years	5,340	2,797
Total	9 334	6 031
The following are the amounts recognised in Profit or loss:
Amortisation of right to use assets	595	464
Interest eJCpenses on lease liabilities	422	269

(I) The Group applies the short-term lease recognition eJCemptlon to its short-term leases of certain premises taken on lease (I.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option).

16, Qthtt flna,u:l I 11.ablUtln	March 31 2025	March 31 2024
(a) Nan-current
Gross lfability on written put options frefer note (i) and (ii) below]	14,186	3,299
Contingent consideration payable [refer note 36(0) and note (iv) below]	8,970	7,426
Other payable (refer note (iii) below]	5,126
	28 282	10 725

(i) Curing the year ended March 31, 2020, the Group had entered into an agreement with Activ Pine LLP ('Investor') whereby the Investor has infused Rs, 5,363 against i~uance of equrty shares of a subsidiary company, Biocon Biologics Limited {'BBL'), which represents 2.44 % shareholding of B8L The consideration was received and equity shares were allotted on January 21, 2020.

During the year ended March 31, 2021, the Group had entered into an agreement with Tata Capital Growth Fund II ('Investor') whereby the Investor has infused Rs 2,250 against issuance of equity shares of a subsidiary company, BBL, which represents 0,85% shareholding of BBL The consideration was received and equity shares were allotted on September 03, 2020.

During the year ended March 31, 2021, the Group had entered into an agreement with Beta Oryx Limited ('Investor') whereby the Investor has infused Rs 5,550 against issuance of equity shares of a subsidiary company, BBL, which represents 1.87% shareholding of BBL The consideration was received and equity shares were allotted on March 09, 2021.

As per the above agreements, the Group will be required to provide various options to enable the Investor to exit over a period of time. In the event, such eJCit events do not occur, the Investor may require the parent company (Blocon Limited), to buy them out at certain prices agreed under the arrangement~ Such an oblJgation to provide exit to the Investors required the Group to record a financial liability towards gross obligation amounting to Rs. 10,493 (March 31, 2024: Rs . 14,719) in the consolidated financial statements as at March 31, 2025, In accordance with the Indian Accounting Standards (Ind AS).

Curing the year ended March 31, 2025, the Company purchased equity shares in its subsidiary, BBL. from one of the above investors of the subsidiary pursuant to liquidity option exercised under the shareholder's agreement for Rs. 5,550. This has resulted in increase In Company's equity holding in the subsidiary effective from the date of purchase. Other investors have deferred their exit rights till March 31, 2026 and accordingly the Gross obligation has been disclosed as Non-current liab!l lty in the consolidated financial statements considering that these rights are exercisable post March 31, 2026.

The Group in accordance with Ind AS has elected an accountins policy choice to follow an anticipated acquisition method on inttial recognition which requires recognition of a gross obligation liability with a corresponding derecognttion of non-controllrng interest balance in Its consolidated financial statements, Further, in accordance with the generally accepted accounting principles, the Group has made an accounting policy choice to present any subsequent change in the fair value of gross obltgation liability in other equity. The fair value of the gross obligation is computed using the underlying share price of the unlirted subsidiary which is determined based on discounted cash flow approach and other factors.

(11) During the previous year, BBL has issued 1,06,86,044 compulsory convertible debentures ("CCD") to ESOF Ill Investment Fund and Edelweiss Alternative Asset Advisors Umited, on private placement basis at an issue price of 280.74 amounts to Rs. 3,000,The CCO's are issued for a tenor of 36 months, are unsecured, redeemable at par and carry a conversion option at any time during the tenor at the option of the investor. CCD bears a coupon rate of 12% per annum plus agreed variable coupon payable on compounded and cumulative basis only on redemption. The variable coupon is linked to the equity share price of BBL The CCO's are convertible upon occurrence of conversion event at 1:1 ratio.

Under the above arrangement, the Group will be required to provide various options to enable the Investor to exit over a period of time. In the event, such extt events do not occur, the Investor may require the parent company (Biocon Limited), to buy them out at certain prices agreed under the arrangement. Such an obligation ta provide exit to the Investors required the Group to record a financial liability towards gross obligation amounting to Rs. 3,693 in the consolidated financial statements in accordance with the Indian Accounting Standards (Ind AS).

(iii) The Group had acquired the biosimilar business from Vfatris in November 2022 and under the definitive agreement, the Group had an obligation to pay a deferred consideration of Rs. 28,619 (USO 335 millron) to Viatris. The Group settled Rs. 20,930 (USO 245 mllllon) in cash and the parties also agreed to offset the closing working capita I target of Rs, 2,563 (USO 30 million), against the deferred cash consideration. The Group entered into a fu ll and final settlement agreement wrth Viatris, under which, Viatris has agreed to waive-off the remaining deferred consideration of Rs. 5,126 (USO 60 miff ion) subject to certain conditions relating to royalty, profit shares, milestone payments in respect of a molecule, to be paid by the Group to one of rts collaboration partner as and when the product is commercialized and hence such amount has been disclosed under Other financial liabilities.

(iv) CCPS were fair valued using Binomial Option Pricing Model at Rs, 82,181. Each CCPS shall be convertible into equity shares of BBL at any time at the option of the holder at a conversion rate of 1:1. BBL has an obligatfon to issue further equity shares to Mylan Inc, subject to maximum of 61,562,420 equity shares, such that the fair value of the equity holding in BBL post conversion is atleast USO 1,000 Mn. The issue of additional shares results in contingent consideration. The CCPS on initial recognition has been bifurcated into equity component of Rs. 74,815 (fixed to fixed conversion) and contingent consideration (derivative liability) of Rs. 7,366. At March 31, 202S, the fair value of contingent consideration is Rs. 8,970 (March 31, 2024: Rs. 7,426),

(b) Current

Deferred consideration payable [refer note (iii) above] Payable towards purchase consideration Unpaid dividends Gross llabllity on written put options [refer note (i) above] Interest accrued but not due Employee benefit payable Payables for capital goods

March 31, 2025	March 31 2024
	27,423
57
	14,719
2,486	176
2,558	2,233
4,220	5,448
9 lZ6	sooos

195

1212 736

Biocon Umfted

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are In Indian Rupees MIiiion, except share data and per share data, unless otherwise stated)

17. Provisions		March 31 2025	March 31 2024
(a) Non-current Provision for employee benefits
Gratuity [refer note 35J		1,214	1,101
P,ovlilon for nhK r4!-.tUtl\		1,394	1,275
		2 608	2 376
(b) Current
Provision for employee benefits
Gratuity [refer note 35]		408	398
Compensated absences		1,372	1,261
Provfs.lO <i for="" roturn<="" td="" u!h="">		136	136		136	136
		1916	1 795
		For the year ended March 31, 2025
(i) Movement In provisions	Gratuity	Compensated	Salesretum
		absences
Opening balance Provision recognised/ (reversed) during the year	1,499	1,261	1,411
Closing balance	123 1622	111 1372	119 1530
		For the year ended March 31, 2024
	Gratuity	Compensated	Sales return
Opening balance	1,301	absences 935	1,515
Provision recognised/ (reversed) during the year	198	326	(104)
Closing balance	1499	1261	1411
18. Other llabllitles		March 31 2025	March 31 2024
(a) Non-curTent
Deferred revenues [refer note 21J		3,366	3,107
		3 366	3107
(b) Current
Deferred revenues [refer note 21J		1,452	1,176
Advances from customers [refer note 21J		6,119	5,165
Statutory taxes and dues payable		2,307	1,071
Other dues		370	356
		10248	7 768
191 Curn1nt bot·rowln&~		March 311 2025	March 31 2024
From banks/ financial Institutions
Packing credit foreign currency loan (unsecured) [refer note (i) below]		6,513	5,274
Packing credit rupee export loan (unsecured) {refer note (ii) below]		6,180	7,660
Commercial Paper [refer note {v) below]		5,661
Term loan (unsecured) [refer note (vi) below) Cash credit [refer note (iii) below]		8,844 3,033	5,000 3,141
Working capital loan (secured) [refer note (iv), (viii) and (ix) below]		3,249	417
Current maturities of non-current borrowings [refer note 14]		18,954	6,480
Proceeds from Non-recourse factoring arrangement [refer note vii)		1,067
The above amount Includes		53 501	27 972
Secured borrowings		3,033	3,141

(i) BBL has obtained foreign currency short term unsecured pre-shipment credit loans from various banks that carries fixed interest rate ranging from 5.06% p.a. to 5_66% p.a. (March 31, 2024: 5.75% p.a. to 6.45% p.a). Packing credit foreign currency loan tenure is upto 180 days from the date of draw down.

{ii) BBL has obtained rupee denominated short term unsecured pre-shipment credit loans from various banks that carries interest rate ranging from 6,9% p.a. to 7.9% p.a. (March 31, 2024: 7.24% p.a. to 8.20% p.a.). Packing credit rupee loan tenure is upto 180 days from the date of draw down.

(iii) Biocon SON. BHD, Malaysia availed working capital facilities upto USO 10 million carrying an interest rate of Bank Lending Rate+ 0.5% p.a. The loan is secured by corporate guarantee by BBL

(iv) During the year ended March 31, 2025, Biocon Pharma Inc. (BPI) has availed working capital facilities for USO 36 million with MUFG carrying an interest rate of SOFR + 0.9%. Further, BPI had existing working capital facility upto USO 5 million from CITI bank tlll March 2024. This has been repaid in the current year. The working capital facilities are secured by a charge on inventories and accounts receivables of BPI.

(v) On January 29, 2025, the Company has issued 11,400 Commercial Paper (CP) securities having a face value of Rs. 5,00,000 on private placement basis in favour of Nippon India Mutual Funds at a discount rate of 8.75% per annum for a tenure of 90 days. CP is due for repayment on April 29, 2025.

(vi) BBL has obtained short term unsecured loan from various banks that carries interest rate ranging from 6.07% p.a. to 7.8% p.a. The tenure of the loan is 365 days from the date of draw down.

(vii) During the year ended March 31, 2025, the Company has received Rs. 1,067 towards discounting of its receivables on non-recourse basis, recorded under 'Current borrowings'.

(viii) Syngene availed pre-shipment export credit of Rs. 171 at SOFR+0.95% during the year ended March 31, 2025, for a tenor of 3 months.

zo. Tr.t-dia M H blt!i	March 31 2025	March 31 2024
Trade and other payables
-total outstanding dues of micro and small enterprises	1,315	958
- total outstanding dues of creditors other than micro and small enterprises•	64,172	61,762
	65,487	62,720
• includes Other payables comprising of allowances for Chargebacks /Discounts/ Rebates/ Incentives expected to be settled in cash

All trade payable are 'current'. The Group's exposure to currency and liquidity risks related to trade payables is disclosed in Note 36.

Tra.dct sn;yablH a1lD1 :schedulll!-:				Outstanding for following periods from due date of payment
March 31, 2025	Unbilled	Not Due	Less than 1 year	1-2 years	2-3 years	More than 3 years	Total
Outstanding dues of micro and small enterprises		767	540			1	1,315
Outstanding dues of creditors other than micro and small enterprises		10,063	6,23:I	542	705	25	64,172
	•• S84	10850		547	707	26	65 487
	Unbllled	Not Due	Less than 1 year	Outstanding for followlng periods from due date of payment 1-2 years	2-3 years	More than 3 years	Total
		789	160	4		2	958
	43,921	7,089	3,735	6,989	27		61,762
	4] 921	7 878	385	6993	JO		62 720

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

21. Revenue from contracts with customers Sale of products• Sale of services Contract research and manufacturing services income Licensing and development fees Other operating revenue Sale of process waste Incentives from government Sale of brands' Others [refer note a below] Revenue from operations Year ended Year ended March 31, 2025 March 31, 2024 1,15,378 1,05,880 34,802 34,150 342 1,928 439 448 507 525 3,500 1,149 1,126 1,52,617 1.47,557

' During the year ended March 31, 2024, Biocon Biologics Limited ("BBL'') has entered into a agreement with Eris Lifesciences for sale of its business of commercialization of (i) Branded generic immunotherapy and nephrology small molecules formulations being manufactured by third parties under manufacturing agreements and (ii) the in-licensed products in India for consideration of Rs. 3,660. The Group has recorded gain of Rs. 3,500 net of costs of the related underlying assets during the year ended March 31, 2024.

• includes profit share

a) Others include income from support services, rentals by the SEZ Developer and recognition of deferred revenue for assets funded by customers over the useful life.

21.1 O(saggregated revenue Information

Set out below is the disaggregation of the Group's revenue from contracts with customers:

	Year ended March 31, 2025
	Generics	Biosimilars	Research	Total
Revenue from contracts with customers
Sale of products	26,494	88,884		1,15,378
Sale of services	46	128	34,970	35,144
	26,540	89,012	34,970	1,50,522
Revenue from other sources
Other operating revenue	928	280	887	2,095
	928	280	887	2,095
Total Revenue from operations	27,468	89,292	35,857	1,52,617

		Year ended March 31, 2024
	Generics	Biosimilars	Research	Total
Revenue from contracts with customers
Sale of products	23,912	81,968		1,05,880
Sale of services	116	2,290	33,672	36,078
	24,028	84,258	33,672	1,41,958
Revenue from other sources
Other operating revenue	973	3,925	701	5,599
	973	3,925	701	5,599
Total Revenue from operations	25,001	88,183	34,373	1,47,557
21.2 Changes in contract liabilities - advances from customers and deferred revenues
			March 31, 2025	March 31, 2024
Balance at the beginning of the year			9,448	10,225
Add:- Increase due to invoicing during the year			7,377	6,139
Add:- foreign currency translation			141	129
Less:-Amounts recognised as revenue during the year			(6,029)	(7,045)
Balance at the end of the year			10,937	9,448
Expected revenue recognition from remaining performance obligations:
- Within one year			7,571	6,341
- More than one year			3,366	3,107
			10,937	9448
21.3 Contract balances
Trade receivables including unbilled revenue			54,879	62,306
Contract liabilities			10,937	9,448

Trade receivables are non-interest bearing. Refer note 11 and note 18. Contract liabilities include deferred revenue and advance from customers.

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

21.4 Performance obligation:

In relation to information about Group's performance obligations in contracts with customers refer note 2(1). The Invoices are issued/generated according to contractual terms/ at the point in time and are usually payable within 30 to 120 days.

	2,94,175
	(1,50,484)
	(1,733)
1,50,522	1,41,958
	3,10,472 (1,59,179) (771)

* Includes revenue from sale of products and sale of services.

Revenues from operations Timing of recognition

Revenue recognised at a point of time Revenue recognised over a period of time Total revenue from operations

1.47,557
37,729
1,09,828

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

	Year ended March 31, 2025	Year ended March 31, 2024
22. Other income
Interest income on:
Deposits with banks and financial institutions	978	1,495
Others	109	118
Dividend income	28
Net gain on sale of current investments	383	686
Net gain on financial assets measured at fair value through profit or loss		1,015
Gain on dilution of interest in an associate [refer note 44]		1,053
Sale of business (net) [refer note 42C)	10,573
Gain on loss of significant influence [refer note 44]		4,254
Other non-operating income	11	34
	12,082	8,655
23. Cost of materials consumed
Inventory at the beginning of the year	11,164	12,729
Add: Purchases	45,581	49,154
Less: Inventory at the end of the year	(13,978)	(11,164)
Cost of materials consumed	42,767	50,719
24. Changes in inventories of finished goods, work-in-progress and stock-in-trade
Inventory at the beginning of the year
Stock-in-trade	15,895	11,983
Finished goods	8,234	4,013
Work-in-progress	14,146 38,275	13,712 29,708
Inventory at the end of the year
Stock-in-trade	8,949	15,895
Finished goods	9,152	8,234
Work-in-progress	17,232 35,333	14,146 38,275
	2,942	{8,567)
25. Employee benefits expense
Salaries, wages and bonus	27,074	23,206
Contribution to provident and other funds	1,217	1,046
Gratuity [refer note 35]	282	263
Share-based compensation expense [refer note 30]	1,370	1,006
Staff welfare expenses	1,501	1,120
	31,444	26,641
26. Finance costs
Interest expense on financial liabilities measured at amortised cost	6,466	7492
Interest expense on financial liability measured at FVTPL	1,989	1,983
Other finance costs	97
Interest on lease liabilities [refer note 15]	422	269
	8,974	9,744

(a) Interest expense on financial liabilities is net of borrowing cost capitalisation amounting to Rs. 5,884 (March 31, 2024 - Rs. 4,722).

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

	Year ended March 31, 2025	Year ended March 31. 2024
27. Depreciation and amortisation expense
Depreciation of property, plant and equipment [refer note 3]	9,416	8,929
Amortisation of intangible assets [refer note 4 (a)]	6,859	6,295
Depreciation of right of use assets [refer note 4 (b)]	595	464
	16,870	15,688
28. Other expenses
Royalty and technical fees	5	87
Rent	195	3
Communication expenses	185	147
Travelling and conveyance	1,613	1,466
Professional charges	5,233	5,045
Transition Support Agreement ('TSA') expense	536	8,804
Payment to auditors	68	81
Directors' fees including commission	225	203
Power and fuel	3,779	3,889
Insurance	735	621
Rates, taxes and fees	1,064	420
Lab consumables	1,854	1,890
Repairs and maintenance
Plant and machinery	5,559	4,435
Buildings Others	554 2,088	485 1,923
Selling expenses
Freight outwards and clearing charges	2,926	887
Sales promotion expenses	3,309	1,870
Commission and brokerage (other than sole selling agents)	264	209
Bad debts written off	30	11
Provision/ (reversal) for doubtful debts, (net)	260	(182)
Net loss on financial assets/ liabilities measured at fair value through profit or loss	798
Printing and stationery	163	148
Loss on sale of assets, (net)	76	12
Foreign exchange loss, (net) Research and development expenses	562	523
Clinical trial and development expenses	5,888 75	6,071 74
Corporate social responsibility expenditure	224	201
Miscellaneous expenses	743	539
	39,011	39,862
Less: Expenses capitalized to intangible assets		(74)
	39,011	39,788
29. Research and development expenses
Research and development expenses	5,888	6,071
Lab consumables	1,854	1,890
Employee benefits expense	2,127	2,160
Other research and development expenses included in other heads	395	2,331
	10,264	12,452
Less: Recovery of product development costs from co-development partners (net)	{1,476)	{838)
Less: Expenses capitalized to intangible assets		{74)
		11,540

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

30. Employ~e stock compe;is:arlon

(a) Blocon ESOP Plan

On September 27, 2001, Biocon's Board of Directors approved the Biocon Employee Stock Option Plan ('ESOP Plan 2000') for the grant of stock options to the employees of the Company and its subsidiaries/ joint venture company. The Nomination and Remuneration Committee ('Remuneration Committee') administers the plan through a trust established specifically for this purpose, called the Biocon India Limited Employee Welfare Trust (ESOP Trust).

The ESOP Trust shall make additional purchase of equity shares of the Company using the proceeds from the loan obtained from the Company, other cash inflows from allotment of shares to employees under the ESOP Plan and shall subscribe, when allotted to such number of shares as is necessary for transferring to the employees. The ESOP Trust may also receive shares from the promoters for the purpose of issuance to the employees under the ESOP Plan. The Remuneration Committee shall determine the exercise price which will not be less than the face value of the shares.

Grant VII

In July 2014, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees. These options are exercisable atthe closing market price of Company's shares existing on the date preceding to the date of grant.

		March 31, 2025		March 31, 2024
Particulars	Noof Options	Weighted Average Exercise Price (Rs)	Noof Options	Weighted Average Exercise Price (Rs)
Outstanding at the beginning of the year			2S,750	79
Granted during the year
Lapses/forfeited during the year
Exercised during the year			(25,750)	79
Expired during the year
Outstanding at the end of the year
Exercisable at the end of the year
Weighted average remaining contractual life (in years)
Weighted average fair value of options granted (Rs)
Range of exercise prices for outstanding options at the end of the year

Grant IX

In June 2016, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees. These options are exercisable at 50% of the closing price as per National Stock Exchange as on the preceding day to the date of grant.

		March 31, 2025		March 31, 2024
Particulars	Noof Options	Weighted Average Exercise Price (Rs)	Noof Options	Weighted Average Exercise Price (Rs)
Outstanding atthe beginning of the year	13,94,455	140	22,96,917	131
Granted during the year			-
Lapses/forfeited during the year	(91,875)	143	(1,50,100)	135
Exercised during the year	(7,27,960)	136	(7,52,362)	115
Expired during the year		-
Outstanding at the end of the year	5,74,620	141	13_,94,455	140
Exercisable atthe end of the year	2,72,370	-	5,31,055	118
Weighted average remaining contractual life (in years)	0.8	-	1.5
Weighted average fair value of options granted (Rs)		-
Range of exercise prices for outstanding options at the end of the year	78-173		77-173

_GrantX

In June 2016, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees. These options are exercisable at 50% of the closing price as per National Stock Exchange as on the preceding day to the date of grant.

	March 31, 2025		March 31, 2024
Particulars	Noof Options	Weighted Average Exercise Price (Rs)	Noof Options	Weighted Average Exercise Price (Rs)
Outstanding at the beginning of the year			13,46,649	154
Granted during the year				-
Lapses/forfeited during the year			(55,500)	116
Exercised during the year		-	(12,91,149)	156
Expired during the year	-			-
Outstanding at the end of the year		-
Exercisable at the end of the year
Weighted average remaining-<:ontractual life (in years)	-
Weighted average fair value of options granted (Rs)
Range of exercise prices for outstanding options at the end of the year				-

The average market price of the Company's share during the year ended March 31, 2025 is Rs 279 (March 31, 2024 • Rs 248) per share . \,.\Mire::

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees MIiiion, except share data and per share data, unless otherwise stated)

30. Employee stock compensation (continued)

(b) RSU Plan 2015

On March 11, 2015, Biocon's Remuneration Committee approved the Biocon - Restricted Stock Units (RSUs) of Syngene ('RSU Plan 2015') for the grant of RSUs to the employees of the Company and its subsidiaries other than Syngene. The Remuneration Committee administers the plan through a trust, called the Biocon Limited Employee Welfare Trust. For this purpose, on March 31, 2015, the Company transferred 2,000,000 equity shares of Syngene to Biocon Limited Employees Welfare Trust.

In April 2015, the Company approved the grant to its employees under the RSU Plan 2015. The RSUs under this grant would vestto the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees. Exercise price of RS Us will be Nil.

		March 31, 2025	March 31, 2024
Particulars	Noof Options	Weighted Average Exercise Price (Rs)	Noof Options	Weighted Average Exercise Price (Rs)
Outstanding atthe beginning of the year			11,504	-
Granted during the year		-
Lapses/forfeited during the year		-	(11,504)	-
Exercised during the year			-
Expired during the year				-
Outstanding at the end of the year	-		-
Exercisable at the end of the year				-
Weighted average remaining contractual life (in years)			-	-
Weighted average fair value of options granted (Rs)			-	-

(c) RSU Plan 2019

On January 7, 2019, Biocon's Nomination and Remuneration Committee ('NRC') and the Board of Directors approved the Biocon Biologics - Restricted Stock Units (RSUs) of Biocon Biologics Limited ('RSU Plan 2019') for grant of RSUs to employees of the Group. The NRC administers the plan though a trust called, Biocon Limited Employee Welfare Trust. For this purpose on January 8, 2020, the Company transferred 2,161,904 equity shares of Biocon Biologics Limited to Biocon Limited Employee Welfare Trust.

During the previous year, modification in vesting was approved by NRC. Based on revised approval, the options under this grant would vest to the employees as 25% in first year after the grant date, 25% on the event of IPO, 25% after the expiry of one year from IPO date and 25% after the expiry of 2 years from the IPO date. The options are exercisable only on the event of an IPO and exercise period shall be one year from the date of last vesting,

	March 31, 2024 March 31, 2025
Particulars	Noof Options	Weighted Average Exercise Price (Rs)	Noof Options	Weighted Average Exercise Price (Rs)
Outstanding at the beginning of the year	51,43,254	2	61,69,619	2
Granted during the year	-		-
Lapses/forfeited during the year	(19,41,604)	2	(10,26,365)	2
Exercised during the year	-		-
Expired during the year			-
Outstanding atthe end of the year	32,01,650	2	51,43, 254	2
Exercisable atthe end of the year		-		-
Weighted average remaining contractual life (in years)	3		4	-
Weighted average fair value of options granted (Rs)				-

(d) RSU Plan 2020

On May 14, 2020, Biocon's Nomination and Remuneration Committee ('NRC') and the Board of Directors approved the Biocon Restricted Stock Units (RSUs) Long Term Incentive Plan Financial Year 2020-24 ("RSU Plan 2020") for grant of RSUs to present and/or future employees of the Company and its present and future subsidiary companies. The plan is implemented though a trust called, Biocon India Limited Employee Welfare Trust wherein the Company will issue shares to the trust by way of fresh allotment over a period of time.

The RSUs granted under this Plan shall vest over a period of time (service condition) and based upon the performance of the employee. The period of vesting shall be determined as per the date of grant and the maximum period of vesting shall not extend beyond August 1, 2024. The actual number of RSUs to be vested each year for each Grantee shall be based on his individual performance conditions, the key parameters of which shall be measured through growth in revenue and profits, delivering on key strategic initiatives and shareholders' value creation and such other conditions as may be determined by the Managing Director and Chief Executive Officer of the Company in accordance with the overall terms set by the NRC.

	March 31, 2025		March 31, 2024
Particulars	Noof Options	Weighted Average Exercise Price (Rs)	Noof Options	Weighted Average Exercise Price (Rs}
Outstanding at the beginning of the year	14,31,469	5	17,29,983	5
Granted during the year			7,13,500	5
Lapses/forfeited during the year	(65,157)	5	(2,64,125)	5
Exercised during the year	(5,30,136)	5	(7,47,889)	5
Expired during the year				-
Outstanding at the end of the year	8,36,176	5	14,31,469	5
Exercisable at the end of the year	3,29,294		4,48,817	-
Weighted average remaining contractual life (in years)	1.2		1.8	-
Weighted average fair value of options granted (Rs)		-	353	-

Assumptions used in determination of the fair value of the stock options under the Black Scholes Model for grants during the year are as follows:

Particulars
Weighted Average Exercise Price	5
Expected volatility	33.0% to 36.2%
Life of the options granted (vesting and exercise period) in years	0.8
Average risk-free interest rate	7.2%
Expected dividend rate	0.6%

Blocon Umlted

Notes to consolldated financlal statements for the year ended March 31, 2025 {All amounts are in Indian Rupees MIiiion, except share data and per share data, unless otherwise stated)

(e) R5U Plan 2025

On Sep 4, 2024, Biocon's Nomination and Remuneration Committee ('NRC') and the Board of Directors approved the Biocon Restricted Stock Units (RSUs) Long Term Incentive Plan Financial Year 2025-29 ("RSU Plan 2025") for grant of RSUs to present and/or future employees of the Company and its present and future subsidiary companies. The plan is implemented though a trust called, Biocon India Limited Employee Welfare Trust.

The RSUs granted under this Plan shall vest over a period of time (service condition) and based upon the performance of the employee. The period of vesting shall be determined as per the date of grant and the maximum period of vesting shall not extend beyond September 1, 2029. The actual number of RSUs to be vested each year for each Grantee shall be based on his individual performance conditions, the key parameters of which shall be measured through growth in revenue and profits, delivering on key strategic initiatives and shareholders' value creation and such other conditions as may be determined by the Managing Director and Chief Executive Officer of the Company in accordance with the overall terms set by the NRC.

	March 31, 2025
Particulars	Noof Options	Weighted Average Exercise Price (Rs)
Outstanding at the beginning of the year
Granted during the year	47,30,430	5
Lapses/forfeited during the year	(75,000)	5
Exercised during the year
Expired during the year
Outstanding at the end of the year	46,55,430	5
Exercisable at the end of the year
Weighted average remaining contractual life (in years)	4.5
Weighted average fair value of options granted (Rs)	287

Assumptions used in detenmination of the fair value of the stock options under the Black Scholes Model for grants during the year are as follows:

Particulars	March 31, 2025
Weighted Average Exercise Price	5
Expected volatility	33.0% to 36.2%
Life of the options granted (vesting and exercise period) in years	5.25
Average risk-free interest rate	7.0%
Expected dividend rate	0.6%

{f) Syngene ESOP Plan 2011

On July 20, 2012, Syngene Employee Welfare Trust ('Trust') was created for the welfare and benefit of the employees and directors of Syngene and administered by the Nomination and Remuneration Committee. The Board of Directors approved the employee stock option plan of Syngene. On October 31, 2012, the Trust subscribed into the equity shares of the Syngene using the proceeds from interest free loan of Rs. 150 obtained from Syngene.

Grant

Pursuant to the Scheme, Syngene has granted options to eligible employees of the Company under Syngene Employee Stock Option Plan - 2011. Each option entitles for one equity share. The options under this grant will vest to the employees as 25%, 35% and 40% of the total grant at end of second, third and fourth year from the date of grant, respectively, with an exercise period of three years for each grant. The vesting conditions include service terms and performance of the employees. These options are exercisable at an exercise price of Rs. 11.25 [March 31, 2024: Rs. 11.25] per share (Face Value of Rs. 10 per share).

Details of Grant
	March 31, 2025	March 31, 2024
Partlculars	Noof	Noof
	Ootions	Ootlons
Outstanding at the beginning of the year	1,34,123	6,10,191
Granted during the year
Lapses/forfeited during the year	(10,132)	(6,306)
Exercised during the year	[89,992)	(4,69,762)
Outstanding at the end of the year	33,999	1,34,123
Exercisable at the end of the year	33,999	61,472
Weighted average exercise price	11.25	11.25
Weighted average share price at the date of exercise (In Rs)	787.7	745.7

The weighted average remaining contractual life for the stock options outstanding as at March 31, 2025 is 2 years [March 31, 2024· 3 years].

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are In Indian Rupees Million, except share data and per share data, unless otherwise stated)

(g) Syngene Restricted Stock Unit Long Term lncentlve Plan 2020

The Board of Directors of Syngene on April 24, 2019 and the Shareholders of the Company in the Annual General Meeting held on July 24, 2019 approved the Syngene Restricted Stock Unit Long Term Incentive Plan FY 2020. Each option entitles for one equity share. The options under this grant will vest to the employees as 25%, 25%, 25% and 25% of the total grant at the end of first, second, third and fourth year from the date of first grant, respectively, with an exercise period of 5 years for each grant. The vesting conditions include service terms and performance of the employees. These options are exercisable at an exercise price of Rs . 10 per share (Face Value of Rs. 10 per share).

Details of Grant

	March 31, 2025	March 31, 2024
Particulars	Noof	Noof
	Options	Ootlons
Outstanding at the beginning of the year	8,42,084	15,73,842
Granted during the year		38,032
Lapses/forfeited during the year	(70,507)	(1,28,203)
Exercised during the year	(5,49,015)	(6,41,587)
Outstanding at the end of the year	2,22,562	8,42,084
Exercisable at the end of the year	2,22,562	5,61,068
Weighted average exercise price	• 10	10
Weighted average fair value of shares granted during the year under Black Scholes Model (In Rs)		584.50
Weighted average share price at the date of exercise (In Rs)	787.72	659.80

The weighted average remaining contractual life for the stock options outstanding as at March 31, 2025 is 2.34 years [March 31, 2024 - 3.34 years].

Assumptions used in determination of the fair value of the stock options under the Black Scholes Model are as follows:

Particulars	I March 31, 2025	March 31, 2024
Dividend yield (%)	0.0%	0.0%
Exercise Price (In Rs)	10	10
Expected volatility	30.4%	30.4%
Life of the options granted (vesting and exercise period) in years	3.5	3.5
Average risk-free interest rate	7.2%	7.2%

(h) Syngene Long Term Incentive Performance Share Plan 2023

The Board of Directors of Syngene on 22 March 2023 and the Shareholders of the Syngene on 23 April 2023 approved the Syngene Long Term Incentive Performance Share Plan 2023. Each option entitles for one equity share. The plan comprises of 3 metrics basis which performance is evaluated and the units shall vest on 31 May after the close of the third financial year for which the performance is being considered i.e. 31 May 2025, with an exercise period of 5 years for each grant, The vesting conditions include service terms of the employees. These options are exercisable at an exercise price of Rs. 10 per share (Face Value of Rs. 10 per share).

Details of Grant

	March 31, 2025	March 31, 2024
Particulars	Noof	Noof
	Ootlons	Options
Outstanding atthe beginning of the year	2,58,254
Granted during the year	11,80,989	2,58,254
Lapses/forfeited during the year	(4,53,476)
Exercised during the year
Outstanding at the end of the year	9,85,767	2,58,254
Exercisable at the end of the year
Weighted average exercise price
Weighted average fair value of shares granted during the year under Black Scholes Model (In Rs)	976.7	905.7
Weighted average share price at the date of exercise (In Rs)

The weight!d average remaining contractual life for the stock options outstanding as at 31 March 2025 is 6.29 years [31 March 2024: 6.17 years].

Assumptions used in determination of the fair value of the stock options under the Black Scholes Model are as follows:

Particulars	I March 31, 2025	March 31, 2024
Dividend yield (%)	0.0%	0.0%
Exercise Price (In Rs)	10	10
Expected volatility	25.4%	26.2%
Life of the options granted (vesting and exercise period) in years	6.29	6.17
Average risk-free interest rate	6.5%	7.1%

{I) Syngene Long Term Incentive Outperform a nee Share Plan 2023

The Board of Directors of Syngene on 22 March 2023 and the Shareholders of Syngene on 23 April 2023 approved the Syngene Long Term Incentive Outperformance Share Plan .2023. The performance assessment period for the said plan ,s FY 2023 to FY 2027 (i.e. 5 years). However, no grants were given to any employees during the year ended 31 March 2025. Accordingly, no accounting has been done in the current financial year. ~ ^l

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees MIiiion, except share data and per share data, unless otherwise stated)

(j) Biocon Biologics Limited Restricted Stock Units Long Term Incentive Plan FY 2022-24

On July 21, 2021, Board of Directors of Biocon Biologics Limited ("BBL") approved the Biocon Biologics Limited Restricted Stock Units Long Term Incentive Plan FY 2022-24 ('RSU Plan') for the grant of Restricted stock units to the employees of BBL and its subsidiaries. The Nomination and Remuneration Committee ('Remuneration Committee') administers the plan through a trust established specifically for this purpose, called the Biocon Biologics Employees Welfare Trust (ESOP Trust).

In August 2021, based on the approval of the Board of BBL, BBL granted RSUs to its employees under this Plan. For grants made before August 1, 2021, the options would vest to the employees as 33%, 33% and 34% of the total grant at the end of first, second and third year, respectively from the date of grant. Where the grant is made after August 01, 2021 and before July 31, 2022, the vesting would be 50% and 50% of the total grant _at the end of first and second year, respectively from the date of grant. For grants made after August 1, 2022 and before March 31, 2023, 100% would vest in one year from the date of grant. Exercise period is 3 years for each grant. These options are exercisable at Rs. 10 per RSU. The RSU Plan provides for certain market and non-market conditions for vesting which are measured through revenue, profit, achievement of key milestones and share price increase.

Details of Grant

	March 31, 2025		March 31, 2024
Particulars	Noof Options	Weighted Average Exercise Price (Rs)	Noof Options	Weighted Average Exercise Price (Rs)
Outstanding at the beginning of the year	68,16,996	10	56,37,230	10
Granted during the year	-	-	18,73,818	10
Lapses/forfeited during the year	(3,59,607)	10	(6,60,462)	10
Exercised during the year	(5,01,379)	10	(33,590)	10
Expired during the year	-		-
Outstanding at the end of the year	59,56,010	10	68,16,996	10
Exercisable at the end of the year	59,56,010	10	29,54,271	10
Weighted average remaining contractual life (in years)	2.6		3.6
Weighted average fair value of options granted (Rs)	240.4		240.4	-

Assumptions used in determination of the fair value of the stock options under the option pricing model for the grants during the year are as follows:

Particulars	March 31, 2025	March 31, 2024
Dividend yield (%)	0.0%	0.0%
Exercise Price (In Rs)	10	10
Expected volatility	31.3% - 32.2%	31.3% - 32.2%
Life of the options granted (vesting and exercise period) in years	4	4
Average risk-free interest rate	7.0%-7.2%	7.0%-7.2%

(k) Biocon Biologics Limited Restricted Stock Units Long Term Incentive Plan FY 2023

On February 22, 2023, Board of Directors of the Company approved the Biocon Biologics Limited Restricted Stock Units Long Term Incentive Plan FY 2023 ('RSU Plan 2023') for the grant of Restricted stock units to the employees of the Company and its subsidiaries. The Nomination and Remuneration Committee ('Remuneration Committee') administers the plan through a trust established specifically for this purpose, called the Biocon Biologics Employees Welfare Trust (ESOP Trust).

In March 2023, based on the approval of the Board, the Company granted RSUs to its employees under this Plan. The options under this grant would vestto the employees as 25% in first year after the grant date, 25% on the event of IPO, 25% after the expiry of one year from IPO date and 25% after the expiry of 2 years from the IPO date. The options are exercisable only on the event of an IPO and exercise period shall be one year from the date of last vesting. These options are exercisable at Rs. 10 per RSU.

Details of Grant

	March 31, 2025		March 31, 2024
Particulars	Noof Options	Weighted Average Exercise Price (Rs)	Noof Options	Weighted Average Exercise Price (Rs)
Outstanding atthe beginning of the year	15,82,620	10	20,39,997	10
Granted during the year		-	9,550	10
Lapses/forfeited during the year	(3,50,186)	10	(4,66,927)
Exercised during the year		-	-
Expired during the year		-	-
Outstanding at the end of the year	12,32,434	10	15,82,620	10
Exercisable at the end of the year	3,38,530		3,93,268	10
Weighted average remaining contractual life (in years)	4.0	-	3.9
Weighted average fair value of options granted (Rs)	241.4		241.4

Assumptions used in determination of the fair value of the stock options under the option pricing model for the grants during the year are as follows:

Particulars	March 31, 2025	March 31, 2024
Dividend yield (%)	0.0%	0.0%
Exercise Price (In Rs)	10	10
Expected volatility	39.5% - 44. 7%	39.5%-44.7%
Life of the options granted (vesting and exercise period) in years	5	5
Average risk-free interest rate	7.1%-7.4%	7.1%-7.4%

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

(I) Blocon Biologics Limited Restricted Stock Units and Performance Stock Units long Term Incentive Plan FY 2025-29 ('RSU Plan 2025')

On February 6, 2024, Board of Directors of Biocon Biologics approved the Biocon Biologics Limited Restricted Stock Units and Performance Stock Units long Term Incentive Plan FY 2025-29 ('BBL RSU Plan 2025') for the grant of Restricted stock units ('RSU') and Performance stock units to the employees of BBL and its subsidiaries. The Nomination and Remuneration Committee ('Remuneration Committee') administers the plan through a trust established specifically for this purpose, called the Biocon Biologics Employees Welfare Trust.

During the year ended March 31, 2025, based on the approval of the Board, BBL granted RSUs to its employees under this Plan on various dates. Options granted under the Plan are subject to one of the following vesting criteria:

i) 100% of the total grant at the end offirst year from the date of grant.

ii) 33%, 33% and 34% of the total grant at the end of first, second and third year, respectively from the date of grant.

iii) 100% of the total grant at the end of third year from the date of grant.

RSU Plan 2025 also provides for certain market and non•market conditions for vesting which are measured through revenue, profit, achievement of key milestones and share price increase. Exercise period is 3 years from the date of vesting for each of the grant and the exercise price is Rs. 10 per RSU/PSU.

Details of Grant

	March 31, 2025
Particulars	Noof Options	Weighted Average Exercise Price (Rs)
Outstanding at the beginning of the year
Granted during the year	38,98,782	10
Lapses/forfeited during the year	(15,222)	10
Exercised during the year
Expired during the year
Outstanding at the end of the year	38,83,560	10
Exercisable at the end of the year
Weighted average remaining contractual life (in years)	4.7	-
Weighted average fair value of options granted (Rs)	301.8

Assumptions used in determination of the fair value of the stock options under the option pricing model for the grants during the year are as follows:

Particulars	March 31, 2025
Dividend yield (%)	0.0%
Exercise Price (In Rs)	10
Expected volatility	30.4% - 33.8%
Life of the options granted (vesting and exercise period) in years	5
Average risk-free interest rate	6.5%- 6.7%

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are In Indian Rupees Million, except share data and per share data, unless otherwise stated)

30. Emplovee stock compensation (continued)

Particulars
Summary of movement in respect of shares held by ESOP Trust is as follows:	March 31. 2025	March 31. 2024
Opening balance	37,95,118	66,12,268
Add: Shares purchased by the ESOP trust
Add: Shares issued by the Company
less: Shares exercised by employees	(12,58,096)	(28,17,150)
Closing balance	25,37,022	37,95,118
Options granted and eligible for exercise at end of the year	6,01,664	9,79,872
Options granted but not eligible for exercise at end of the year	8,09,132	17,42,498
Summary of movement in respect of equity shares of Syngene held by the RSU Trust is as follows:
Opening balance	10,91,447	10,91,447
Less: Shares exercised by employees
Less: Shares sold by the RSU Trust
Closing balance	10,91,447	10,91,447
Options granted and eligible for exercise at end of the year
Options granted but not eligible for exercise at end of the year
Summary of movement in respect of equity shares of Biocon Biologics Limited held by the R5U Trust is as follows:
Opening balance•	1,08,09,520	1,08,09,520
Add: Shares purchased by the RSU Trust from Biocon limited
Closing balance	1,08,09,520	1,08,09,520
Options granted but not eligible for exercise at end of the year *adjusted for the effect of bonus shares	32,01,650	51,43,254
31. Earnings per share ('EPS')
Earnings
Profit for the year attributable to the shareholders of the Company
Profit for the year	10,133	10,225
Shares
Basic outstanding shares	1,20,06,00,000	1,20,06,00,000
Less: Weighted average shares held with the ESOP Trust	(31,44,501)	(51,71,187)
Weighted average shares used for computing basic EPS	1,19,74,55,499	1,19,54,28,813
Add: Effect of dilutive options granted but not yet exercised/ not yet eligible for exercise	7,46,2.90	14,41,689
Weighted average shares used for computing diluted EPS	(19,82,01,789	1,19,68,70,502
Earnings per equity share
Basic (in Rs)	8.46	8.55
Diluted (in Rs)	8.46	8.54
(THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK)

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

32. Exceptional items {net)

a. During the year ended March 31, 2025, one of the subsidiary of BBL has raised funds through issue of senior secured notes amounting to Rs. 66,763 (USD 800 million) and new syndicated facility amounting to Rs. 26,705 (USD 320 million). The funds are utilised to refinance existing term loans. The unamortized portion of debt raise cost of the retired term loans amounting to Rs. 1,216 is written-off to consolidated profit and loss account, classified as an exceptional item in the consolidated financial statements. Consequential tax impact of Rs. 304 was included within tax expense.

b. During the year ended March 31, 2024, one of the subsidiary of BBL recorded provision for inventory for a product due to its low demand and consequentially lower probability of liquation amounting to Rs. 2,366. This was recorded under the head 'Exceptional Item'.

During the year ended March 31, 2025, such inventory amounting to Rs. 885 was liquidated. Hence, the related provision has been reversed and reflected as an exceptional item in the consolidated financial statements for the year. Consequential tax impact of Rs . 147 is included within tax expense.

c. During the year ended March 31, 2025, Syngene received its final claim of Rs. 320 from the inrorance company for the loss of fixed assets in fire incident on December 12, 2016.

d. During the year ended March 31, 2025, the Group invested Rs. 75 against equity shares issued by Indian Foundation for Quality Managemerit ('IFQM'). As at March 31, 2025, the Group has fair valued such investment and has recorded fair value charge of Rs . 75 disclosed under 'exceptional items' in the consolidated financial statements.

e. On 04 July 2023, Syngene entered into a binding term sheet for acquiring Unit 3 biologics manufacturing facility in Bangalore, India, from Stelis Biopharma Limited (SBL). The unit has been acquired effective 1 December 2023 on a slump sale basis at a total cash consideration of Rs. 5,632.

Pursuant to above acquisition, Syngene incurred transaction costs of Rs. Rs. 111 for the year ended March 31, 2024 and the same has been disclosed in the consolidated financial statements. Consequential tax impact of Rs. Rs. 31 is included in tax expense for the year.

f. The Department of Pharmaceuticals ('DOP'), via Corrigendum dated October 20, 2023, has modified the PU guidelines to limit the annual incentive allocation to each applicant for the first 4 years of the scheme. Pursuant to such guidelines, during the year ended March 31, 2024, the Group reversed Rs. 166 of excess PU accrual made in the consolidated financial statements. Consequential tax impact of Rs. 22 is included in tax expense for the year.

g. During the year ended March 31, 2024, one of the subsidiaries of Biocon Biologics Limited ("BBL") had received Rs. 18,269 towards working capital under the existing arrangements. BBL had recorded these receivables at fair value of Rs. 10,219 having regard to the timing and probability of recovery. The resulting difference of Rs . 8,050 is recorded as a gain in the consolidated financial statements. Consequential tax impact of Rs. 407 is included within tax expense. The remaining contingent consideration receivable of USO 30 Mn was recorded at fair value at Rs.750 under "other financial assets" as at March 31, 2025 [refer note 6]

Further, during the year ended March 31, 202S, BBL settled Rs. 2,518 towards working capital under the existing arrangements, which was recorded at fair value of Rs. 1,382. The resulting difference of Rs. 1,136 is recorded as a gain in the consolidated financial statements. Consequential tax impact of Rs. 284 is included within tax expense.

h. During the year ended March 31, 2024, one of the subsidiaries of Biocon Biologics Limited ("BBL") pursuant to the uncertainty of ability to commercialize a product for development and commercialization in certain territories, recorded an impairment of the carrying value of the intangible asset amounting to Rs. 3,854.

i. During the year ended March 31, 2024, Biocon Pharma Limited ('BPL') and its subsidiaries pursuant to the uncertainty in commercialization of product in certain territories, recorded an impairment of the carrying value of the intangible asset amounting Rs. 91. Similarly, Rs. 86 is recorded an impairment of the carrying value of the intangible asset during the year ended March 31, 2025 by one of the subsidiary of BPL.

j. BBL had obtained services of professional experts (like advisory, legal counsel, valuation experts etc.) for the acquisition of Viatris Biosimilar's business in the year 2023. The Group recorded Rs. 1,582 in the year ended March 31, 2024 as an expense in the consolidated financial statements.

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise statedl

]3. Related party transaction;

List of related parties with whom the Group had transactions during the year:

Name of related parties	Nature of relationship
Ke,y managttme-nt persOJ?nel
Klran Mazumdar Shaw	Executive Chairperson
Siddharth Mittai	Managing Director & Chief Executive Officer
lndranll Sen	Chief Financial Officer (upto March 14, 2024)
Mukesh Kamath	Interim Chief Financial Officer (w.e.f June 111 2024)
Mayank Verma	Company Secretary (upto April 14, 2025)
Meleveetil Oamadaran	rndel)endont dlroctor (upto July 25, 2024)
Bobby Kanubhai Parikh	Independent director
Ravl Rasendra Mazumdar	Non•ex.eeutlve director
Eric Vivek Mazumdar	Non-e-x.ecutivl! director
Nalna Lai Kidwal	Independent director
Peter John Bains	Independent director (w.e.f December 12, 2022 upto September 18, 2023)
Peter John Bains	Group Chief Executive Officer (w.e.f. September 18, 2023 upto March 31, 2025)
Rekha Mehrotra Menon	Independent director
Nicholas Hagger	independent director (w.e.f September 01, 2023)
Atul Dhawan	Independent director (w.e.f May 16, 2024)
Joint Ventures
NeoBiocon FZ LLC	Joint-venture
Other related parties
Mylan Inc. (w.e.f November 29, 2022)	Investor which has significant influence over a subsidiary
Biocon Foundation	Trust in which key management personnel are the Board of Trustees
lmmuneel Therapeutics Private Limited	Enterprise in which a director of the Company is a member of board of directors
Bicara Therapeutics Inc,	Enterprise in which a director of the Company is a member of board of directors (w.e.f. December 13, 2023}
Mazumdar Shaw Medical Foundation	Trust in which key management personnel are the Board of Trustees
Glentec International Limited.	Enterprise owned by key management personnel
Catherine Rosenberg	Relative of a director
Jeeves	Enterprise in which relative to a director of the Company is proprietor
Narayana Hrudayalaya Limited	Enterprise in which a director of the Company is a member of board of directors

The Group has the following related party transactions

Particulars	Transactions/ Balances	March 31, 2025	March 31, 2024
Key management personnel	Salary and perqulslte, [refer note (a) &. (b) below)	277	199
	Sitting fee• and comml sslon	72	63
	Outstanding a5 at tho yrar end:
	• Trade and other payables	14	3
Associate	Sale of services		1,195
	Outstanding as at the year end:
	- Trade and other receivables		190
Joint Venture	Purchase of goods		47
	Sale of services	18
	Dividend received	28
	Sales promotion and other expenses		18
	Outstanding as at the year end:
	• Trade and other payables	4	301
Other related parties	Sa le. of good<		46
	Sale of services		8
	Elcper,se cross charge in relation to Trilnsitlon Support Agreement ('TSA'J	S36	10,924
	Expe,. Incurred by /elated party on behalf of the Company	884	130
	Health ,ervlce• availed	4
	CSR Expenditure	221	198
	Other expenses	63	69
	Outstanding as at the year end:
	- Trade and other receivables	61	10
	- Deferred consideration payable		27,423
	- Contingent consideration payable	8,970	7,426
	- Contingent consideration receivable		750
	- Trade and other payables	144

• Amounts are not represented since the amounts are rounded off to Rupees million.

"' For closing receivables and payable balances arising from business combination, refer note 6(a) and note 16.

{a) The remuneration to key management personnel doesn¹ t include the provisions made for gratuity and compensated absences amounting to Rs 12 {March 31, 2024: Rs 13), as they are obtained on an actuarial basis for the Company as a whole.

(b) Share•based compensation expense allocable to key management personnel is Rs 66 (March 31, 2024. Rs 59) which 1s not included in the remuneration disclosed above._..,..

.r, MT.. (c) The above disclosures include related parties as per ind AS 24 on "Related Party Disclosures". I_ <o;;::' \_\ 1'J f:o

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

	March 31. 2025	March 31. 2024
34. Contingent liabllitles and commitments
(to the extent not provided for)
(i) Contingent liabilities:
(a) Claims against the Company not acknowledged as debt	11,761	11,356
The above includes:
(i) Direct taxation	9,468	9,337
(ii) Indirect taxation (includes matters pertaining to disputes on central excise, custom duty and service tax)	1,945	1,671
(iii) Other matters	348	348

In light of recent judgment of Honorable Supreme Court dated February 28, 2019 on the definition of "Basic Wages" under the Employees Provident Funds & Misc. Provisions Act, 1952 and based on Group's evaluation, there are significant uncertainties and numerous interpretative issues relating to the judgement and hence It is unclear as to whether the clarified definition of Basic Wages would be applicable prospectively or retrospectively. The amount of the obligation therefore cannot be measured with sufficient reliability for past periods and hence has currently been considered to be a contingent liability in one of its subsidiary.

The Group is involved in taxation matters that arise from time to time in the ordinary course of business. Judgment is required in assessing the range of possible outcomes for some of these tax matters, which could change over time as each of the matter progresses depending on experience on actual assessment proceedings by tax authorities and other judicial precedents. Based on its internal assessment supported by external legal counsel views, if any, the Group believes that it will be able to sustain its positions if challenged by the authorities and accordingly no additional provision is required for these matters.

Other than the matter disclosed above, the Group is involved in disputes, lawsuits, proceedings etc. including patent and commercial matters that arise from time to time in the ordinary course of business. Management is of the view that above matters are not tenable and will not have any material adverse effect on the Group's financial position and results of operations.

(b) Guarantees

Guarantees given by banks on behalf of the Group for contractual obligations of the Group so so

(ii) Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advances

• Towards property plant and equipments 9,054 14,588

Biocon Limited Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

35. Employee benefit plans

(i) The Group has a defined benefit gratuity plan as per the Payment of Gratuity Act, 1972. Under this legislation, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the employee's length of service and salary at retirement/termination age and does not have any maximum monetary limit for payments. The gratuity plan is primarily a funded plan and the Group makes contributions to a recognised fund in India.

The plan assets are maintained with HDFC Life Insurance Company Limited (HDFC Life) in respect of gratuity scheme for employees of the Group. The details of investments maintained by the HDFC Life are not available with the Group and not disclosed. The expected rate of return on plan assets is 6.5% p.a. (March 31, 2024: 7.3% p.a.). The Group actively monitors how the duration and expected yield of the investments are matching the expected outflows arising from the employee benefit obligations.

The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations. Actuarial valuations involve making various assumptions that may differ from actual developments in the future. These includes the determination of the discount rate, future salary increases and mortality rate. Due to these complexity involved in the valuation it is highly sensitive to the changes in these assumptions. All assumptions are reviewed at reporting date. The present value of the defined benefit obligation and the related current service cost and planned service cost were measured using the projected unit cost method.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Group's financial statements as at balance sheet date:

Particulars	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit (asset)/liability
Balance as on April 01, 2024	1,507	(8)	1,499
Current service cost	179		179
Interest expense/ (income)	104	(1)	103
Amount recognised in Statement of profit and loss	283	(1)	282
Remeasurements:
Return on plan assets, excluding amounts included in interest expense/ (income)
Actuarial (gain)/ loss arising from:
Demographic assumptions	(20)		(20)
Financial assumptions	14	-	14
Experience adjustment	70		70
Amount recognised in other comprehensive income	64		64
Liabilities transferred out	(42)		(42)
Benefits paid	(181)		(181)
Balance as at March 31, 2025	1,631	(9)	1,622

Particulars	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit (asset)/liability
Balance as on April 01, 2023	1,308	(7)	1,301
Current service cost	169	-	169
Interest expense/ (income)	95	(1)	94
Amount recognised in Statement of profit and loss	264	Ill	263
Remeasurements:
Return on plan assets, excluding amounts included in interest expense/ (income)
Actuarial (gain)/ loss arising from:
Demographic assumptions
Financial assumptions	9		9
Experience adjustment	72		72
Amount recognised in other comprehensive income	81		81
Liabilities transferred out	(8)		(8)
Benefits paid	(138)		(138)
Balance as at March 31, 2024	1,507	(8)	1,499

Particulars		March 31, 2025	March 31, 2024
Non-current		1,214	1,101
Current		408	398
			1,499
	(THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK)

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

35. Employee benefit plans (continued)

(ii) The assumptions used for gratuity valuation are as below:

	March 31, 2025	March 31, 2024
Interest rate	6.6%	7.2%
Discount rate	6.6%	7.2%
Expected return on plan assets	6.6%	7.3%
Salary increase	6.5%-9%	9%-10%
Attrition rate	14%-30%	14%-30%
Retirement age - Years	58	58

Assumptions regarding future mortality experience are set in accordance with published statistics and mortality tables as per IALM (2012-14)

The weighted average duration of Group's defined benefit obligation was 6-9 years (March 31, 2024 - 6-9 years).

These defined benefit plans expose the Group to actuarial risks, such as longevity and interest rate risk.

(iii) Sensitivity analysis

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged. Sensitivity analysis does not recognise the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously. The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any. The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions are as below:

		I March 31, 2025		March 31, 2024
Particulars	I Increase	I Decrease	I Increase	Decrease
Discount rate (1% change)	(74)	82	(65)	72
Salary increase (1% change)	80	(74)	70	(65)
Attrition rate (1% change)	(13)	14	(10)	11

Sensitivity of significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of defined benefit obligation by one percentage, keeping all other actuarial assumptions constant. Although, the analysis does not take account of the full distribution of the cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

As of March 31, 2025 and March 31, 2024, the plan assets have been invested in insurer managed funds and the expected contribution to the fund during the year ending March 31, 2026, is approximately Rs 281 (March 31, 2025 - Rs 218).

Maturity profile of defined benefit obligation

Particulars	March 31, 2025	March 31, 2024
1st Following year	281	218
2nd Following year	232	183
3rd Following year	226	204
4th Following year	225	166
5th Following year	178	159
Years 6 to 10	820	852
Years 11 and above	285	503

(iv) Risk Exposure

These defined benefit plans typically expose the Group to actuarial risks as under:

a) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

b) Interest rate risk: A decrease in bond interest rate will increase the plan liability.

c) Longevity risk: The present value of the defined plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy will increase the plan's liability.

d) Salary risk: Higher than expected increase in salary will increase the defined benefit obligation.

(v) Other Long term benefits

Present value of other Ion term benefits (i.e compensated absences) obligations at the end of the year

Particulars	March 31, 2025	March 31, 2024
Compensated absences	1,372	1,261

Biocon Limited Notes to consolldated flnanclal statements for the year ended March 31, 2025 (All amounts are in lndlan Rupees Million, except share data and per share data, unless otherwise stated)

U- Fln.11.ffdal lnstromsnHJ Fa[r val1.1 s= and risk m;u,aeementJ

A. Accounting classiflcatlon and fair values

			Carrying amount				Fair value
March 3 J. 2025	FVTPL	FVTOCI	Am.onJ:s~d Cost	FVTor•	Tota l	Level 1	Level 2	Level3	Total
FlrnociiJi.us.au
Non-current investments	264	6,533			6,797	6,237		560	6,797
Derivative assets		2,838			2,838		2,838		2,838
Current investments	4,473				4,473	4,473			4,473
Trade receivables			54,879		54,879
Cash and cash equivalents			32,271		32,271
Other bank balances			8,931		8,931
Other financial assets			5,242		5,242
	4,737	9,371	1,0l,3U		l ,1.S,01	10,710	2,838	560	14,108
Flnanclal llabUltles
Borrowings	20,913		1,56,642		1,77,555			20,913	20,913
Trade payables			65,487		65,487
Derivative liabilities		687			687		687		687
Other financial liabilities	8,970		14,452	14,186	37,608			23,156	23,156
Lease liabilities			6,065		6,065
	29;883	687	2,42,'46	14,1B6	2,87,4ll2		687	44,069	44,756

	Carrvfn& amount					Fair value
M,n=h JJ. 20?4	FVTPL	FVTOCI	Amortiff'd Cost	MOE•	Total	Level 1	Level 2	Level3	Total
fjnancl11l ns@t!i
Non-current investments	264	6,573	4		6,841	6,295		542	6,837
Derivative assets		4,041			4,041		4,041		4,041
Current investments	3,156				3,156	3,156			3,156
Trade receivables			62,306		62,306
Cash and cash equivalents			12,336		12,336
Other bank balances			10,251		10,251
Other financial assets	750		6,485		7,235			750	750
	4,170	10,614	91,382		1,06,166	9,451	4,041	1,292	14,784
Financial liabllltles
Borrowings	18,324		1,38,972		1,57,296			18,324	18,324
Trade payables			62,720		62,720
Derivative liabilities		12			12		12		12
Other financial liabilities	7,426		35,286	18,018	60,730			25,444	25,444
Lease liabilities			5,471		5,471
	25,750	12	2,42,449	18,018	2,86,229		12	43,768	43,780

"'Refer note 16 for measurement of non current financial liabilities carried at fair value through other equity (FVTOE).

(a) The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature

(b) There have been no transfers between level 1, 2 and 3 needs to be mader

(c) The Group enters into derivative financial instruments with various counterparties. Derivatives are valued using valuation techniques in consultation with market e>1pert. The most frequently applied valuation technique include forward pricing, swap models and Black Scholes fvlerton Model (for options valuation), using present value calculations. The models incorporate various inputs including foreign exchange forward rates, interest rate curve and fol'Wird r.l lCSCUrvt!.

B. Measurement of fair values

Fair value of liquid investments are based on quoted price. Derivative financial instruments are valued based on quoted prices for similar ~ssets and liabilities in active markets or inputs that are directly or indirectly observable in the market place. Contingent consideration arising from business acquisition and Non-Convertible Debentures are valued based on option pricing models, as disclosed in note 36(C).

Sensitivity analysis

For the fair values of derivative contracts of foreign currencies and interest rates swaps, reasonably possible changes at the reporting date to one of the significant observable inputs, holding other inputs constant, would have the following effects in other comprehensive income (OCI).

		March 31, 2025 Impact on other componant1i of equity		March 31, 2024 Impact on other components of e_quity
Significant observable Inputs	Increase	Decrease	Increase	Decrease
Spot rate of the foreign currency (1% movement)	(287)	259	(617)	595
Interest rates (100 bps movement)	335	(335)	840	(840)
Fair value of the forward foreign contracts are determined using spot and forward e>1change rates at the balance sheet dates.

Notes to consolidated ffnanclal statements for the year ended March 31, 2025 (All amounts are in lndlan Rupees Million, except share data and per share data, unless otherwise stated)

J6. fjn,snd;sJ rnurum~nts: fair 1,1ah.1a and tltk m.11n.a1emenY! (tQnl[nucd}

C. Significant Unobservable inputs used In Level 3 Fair Values

As at March 31, 2025	Valuatlon Techniques	Si2.nlficant unobservable inputs	Sen.s.ltMtv of lnout to fa r, value rne:asuremenl
a) Contingent consideration payable	Binomial Option Pricing Model - using risk free discount rate and growth rate. The fair value is equal to the present value of the probability- weighted future payoffs	a) Discount rate	A 1% increase in discount rate would have led to approximately Rs 223 gain in Statement of Profit and loss. A 1% decrease would have led to approximately Rs. 269 loss in Statement of Profit and loss,
		b) Volatility rate	A 5% increase in volatility rate would have led to approximately Rs. 356 gain in Statement of Profit and loss. A 5% decrease would have led to approximately Rs. 343 loss in Statement of Profit and loss.
b) Non Convertible Debentures [refer note 14(k)]	Binomial Option Pricing Model - using risk free discount rate and growth rate.	a) Discount rate	A 1% increase in discount rate would have led to approximately Rs. 220 gain in Statement of Profit and loss. A 1% decrease would have led to approximately Rs, 223 loss in Statement of Profit and loss.
		b) Volatility rate	A 5% increase in volatility rate would have led t a approximately Rs. 164 gain in Statement of Profit and loss. A 5% decrease would have led to approximately R! 24-6 lMJ in 5t:at.41ffl0l'l t of Pro@ and' Jou.

As at March 3L 2024	Valuation Techniques	Siimificant unobservable inputs	Sensitivl1v of lnout to fair value meaS.lrement
a) Contingent consideration receivable	Binomial Option Pricing Model - using risk free discount rate and growth rate.	a) Discount rate	A 1% increase in discount rate would have led t a approximately Rs. 17 gain in Statement of Profit and loss. A 1% decrease would have led to approximately Rs. 17 loss in Statement of Profit and loss.
		b) Volatility rate	A 5% increase in volatility rate would have led to approximately Rs. 46 loss in Statement of Profit and loss. A 5% decrease would have led to approximately Rs. 52 gain in Statement of Profit and loss.
b) Contingent consideration payable	Binomial Option Pricing Model - using risk free discount rate and growth rate. The fair value is equal to the present value of the probability - weighted future payoffs	a) Discount rate	A 1% increase in discount rate would have led to approximately Rs. 231 gain in Statement of Profit and loss, A 1% decrease would have led to approximately· Rs. 233 loss in Statement of Profit and loss.
		b) Volatility rate	A 5% increase in volatility rate would have led to approximately Rs.114 gain in Statement of Profit and loss. A 5% decrease would have led to approximatelv Rs. 76 loss in Statement of Profit and loss.
c) Non Convertible Debentures (refer note 14(k)]	Binomial Option Pricing Model - using risk free discount rate and growth rate.	a) Discount rate	A 1% increase in discount rate would have led to approximately Rs. 305 gain in Statement of Profit and loss. A 1% decrease would have led to approximately Rs, 313 loss in Statement of Profit and loss.
		b) Volatility rate	A 5% increase in volatility rate would have led to approximately Rs. 6 gain in Statement of Profit and loss. A 5% decrease would have led to approximately Rs. 4 loss in Statement of Profit and loss,

D. Reconclllation of Level 3 fair values

	Non-current Investments	Contingent consideration receivable	Contingent consideration payable	Non Convertible Debentures [refer note 14(1)]	G_ross UabfUty on written put options [refer note 16(al(I)]
At April 01, 2023	545	8,993	6,583	10,922	14,039
Investment made in the current year	130				3,000
Proceeds from Issue				5,000
Gain/loss included in Statement of Profit and loss
- Net change in fair value loss (unrealised)			843	2,402	979
- Net change in fair value gain (unrealised)	5,744	1,895
Derecognised on account of conversion to Equity shares		(10,219)
Foreign currency translation adjustment		Bl
At March 31, 2024	6,419	750	7,426	18,324	18,018
Investment made in the current year	93
Gain/loss included in Statement of Profit and loss
- Net change in fair value loss (unrealised)		632	1,544	2,589	1,718
- Net change in fair value gain (unrealised)	272
Derecognised on account of settlement		(1,382)			(5,550)
Foreign currency translation adjustment
At March 31, 2025	6784		8970	20913	14 Ul6

llocon Limited

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are In lndlan Rupees Mllllon, eJCcept share data and per share data, unless otherwise stated)

36, Fin.antral Instruments~ f:jlir \lilfUct .ind risk m11n1gementJ (contf"uedl

E. Ftnandal risk man,gemenl

The Group has e,cposure to the following risks arising from financial instruments:

• Credit risk

• Liquidity risk

• Market risk

(I) Risk management framework

The Group's risk management is carried out by the treasury department under policies approved by the Board of Directors. The Board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign e,cchange risk, interest rate risk, credit risk, use of derivative and non-derivative financlal Instruments and investment of excess liquidity.

(II) Credit risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The credit risk arises principally from its operating activities (primarlty trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Customer credit risk is managed by each business unit subject to Group's established policy, procedures and control relating to customer credit risk management, The Audit and Risk Management Committee of the respective Company's has established a credit policy under wh ich each new customer is analysed individually for creditworthiness before the Group's standard payment and delivery terms and conditions are offered. The Group's review includes external ratings, where available, and other publicly ;;available financial information. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurancer

The Group establishes an allowance for impairment that represents Its estimate of expected credit loss in respect of trade and other receivables, The maximum exposure to credit risk at reporting date is primarily from trade receivables amounting to Rs. 54,879 (March 31, 2024: Rs. 62,306). The movement in allowance for credit loss in respect of trade and other receivables during the year was as follows:

A.llcwa.nc~ for credit lou	Morch 31, 1025	M•rch 31, 2024
Opening bala nce	&•6	617
Allowance for credit loss riecogni.se:d / (reversed~	(19)	29
Closing balance	627	646

Refer note 11 for details of aging of trade receivables and allowance for credit losses.

Trade receivables including unbilled revenue from two individual customers is Rs. 11,428 (March 31, 2024 - Nil) which is individually more than 10 percent of the Group's trade receivables including unbilled revenue.

Credit risk on cash and cash equiva lent and derivatives is limited as the Group generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic cred it rating agencies which are rated Al+ or AAA. Investments primarity include investment In liquid mutual fund units, bonds and non-convertible debentures.

(Iii) Liquidity risk

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

As stated in note 48 (d), the Group believes that the working capital is sufficient to meet Its current requirements. Accordingly, no liquidity risk is perceived. In addition, the Group maintains lines of credit as stated In note 14 and note 19.

The following are the contractual maturities of financial llabillt!es and e>Ccluding interest payments. The tables have been drawn up based on the undiscounted cash nows of financial liabilities based on the earliest date on which the Group can be required to pay:

March 31, 2025
Particulars	Less than 1 year	1· 2 years	2-5years	Mare than S years	Total
Borrowings [refer note b]	53,498	25,506	98,551		1,77,555
Trade payables	65,487				65,487
Lease liabilities	797	852	2,345	5,340	9,334
Derivative liabilitles	455	232			687
Other financial liabilities {r~for note a)	9,326	28,282			37,608
Tot.I	1,29,563	54,872	1,00,196	5,340	Z,90,671

Partic,urnr:s	Les.s than 1 year	1 · 2 ,vears	l.•S'jt!"ilrs	More than 5 'f1!:iiH'5	Total
Borrowlngs fre(ar note b)	2S,S28	8. 293	l,23,47S		J,57.296
Trade payables	62,720				62,720
Lease l!abilities	868	689	1,678	2,797	6,032
Derivative liabilities	12				12
Other financial liabilities (refer note a)	50,005		10,725		60,730
Total	1,39,133	8,982	1,35,178	Z,797	2,16,790

(a) other financial liabilities includes amounts payable towards Gross obligation liability, refer note 16.

(b) Borrowings include non-convertible debentures amounting to Rs. 20,913 (March 31, 2024: Rs. 18,324) related to agreements with the lenders containing certain put options fully described in note 14 to these financial statements.

(Iv) Market risk

Market risk Is the risk that the fair value of future cash flows of a financial Instrument will fluctuate because of changes In m.arket prices, such as foreign exchange rates, interest rates and equity prices~

Notes to consolidated financlal statements for the year ended March 31, 2025

(All amounts are In Indian Rupees Million, except share data and per share data, unless otherwise stated)

~ndpl 1ns1rumt1r1t1:1: fiJr v11 fue and t1sk ·manu:empnts;·h;;on1mu9:d)

Foreign currency risk

The Group operates internationally and a major portion of the business is transacted in several currencies and consequently, the Group is exposed to foreign exchange risk through operating and borrowing activities in foreign currency. The Group holds derivative instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates and foreign currency exposure.

The currency profile of financial assets and financial liabilities as at March 31, 2025 and March 31, 2024 are as below:

M0t, <h 2d25<="" ll,="" th="">	USO	SUR	Others	Total	USO	SUR	Others	Total
Financial assets
Investments	15			15
Trade receivables	38,881	6,841	3,051	48,773
Cash and cash equivalents	25.287	2,956	994	29,237
Other bank balances	20			20
Other financial assets	976	56	10	1,042
FlnJMiilJ (Jablllttes
Non- current borrowings (including current maturities)	(1,19,145)			(1,19,145)
Current borrowings	(27,819)			(27,819)
Trade payables	(31,918)	(14,404)	(7,459)	(53,781)
Other financial liabilities	(28,512)	(269)	(20)	(28,801)
Net f{oonciaJ assets/ (ll•blUtle.,)	(1,42,2.15)	(4,820)	(3,424)	(l.5D,459)
Mllf(hll, 2024	USO	EUR	OlherS	Total
Financial assets
Investments	231			231
Trade receivables	48,370	8,206	2,243	58,819
Cash and cash equivalents	7,973	924	8~	9,796
Other bank balances	16			16
Other financial assets	1,154			1,154
Financial liabilities
Non- current borrowings (including current maturities)	(1,11,998)			(1,11,998)
Current borrowings	(13,172)			(13,172)
Trade payables	(38,779)	(5,943)	(9,424)	(54,146)
other financial liabilities	(35,172)	(67)	(318)	(35,557)
NotflnantEal •=1t / (llabllltlos)	(1.41,377)	3,U0	(6,600)	(1,44,857)

Sensitivity analysis

The sensitivity of profit or loss to changes in exchange rates arises mainly from foreign currency denominated financial instruments and the impact on other components of equity arises from foreign exchange forward/option contracts desfs,.a1ed as cash flow hed;es..

Particulars	Impact on profit or loss			Impact on other components of equity
	March 31, 2D25	March 31, 2024	March 31, 2025	March 31, 2024
USD Sensitivity
iNR/USD- Increase by 1%	(1,422)	(1,414)	(1,709)	(2,031)
INR/USD - Decrease by 1%	1,422	1,414	1,709	2,031
EUR Sensitivity
INR/EUR - Increase by 1%	(48)	31	(481	31
INR/EUR - Decrease by 1%	48	(311	48	(311
Derivative financial instruments

The following table gives details in respect of outstanding foreign exchange forward and option contracts:

	March 31, 2025	March 31, 2024
Partlculars	(in Million)
Foreign exchange forward contracts to buy USO with maturity between 0-2 years		USD 115
Foreign exchange forward contracts to sell USO with maturity between 0-8 years	USD 643	USD 692
European style option contracts with periodical maturity between 0-8 years	USO 233	USD 281
European style range forward contracts with periodical maturity between 0-2 years	USO 211	USD 235
Interest rate swaps used for hedging SOFR component in external commercial borrowings	U5D 435	USD 560
Foreign exchange forward contracts to buy between 0-2 Years-JPY	USD 56
Foreign exchange forward contracts to sell between 0-2 Years	EUR 128
European style range forward contracts with periodical maturity dates between 0-2 Years	EUR 112

All of the above contracts are effective as at March 31,2025 and March 31, 2024 and designated through other comprehensive income.

Notes to consolidated flnanclal statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Mllllon, except share data and per share data, unless otherwise stated)

·3& ffnpncial tnn,umentc fair value and risk miUY111rements kA:ntJn.:r«!I

Cash flow and fair value Interest rate risk

The Group's main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During the year ended March 31, 2025 and March 31, 2024 the Group's borrowings at variable rate were mainly denominated in USD,

(a) Interest rate risk exposure

The exposure of the Group's borrowing to interest rate changes at the end of the reporting period are as follows:

	M ,rch 31, 2024
	1,26',349
	30,947
1,77,S55	1,57,296
	March 11, 2DZS 78,222 99,333

(b) Sensltlulty

The Group policy is to maintain a optimum balance between fixed and variable rate borrowings using interest rate swaps to achieve this when necessary, The Group is therefore subject to interest rate risk as defined under Ind AS 107.

A reasonably possible change of 100 basis points in interest rates for variable rate borrowings at the reporting date would have increased/ (decreased) equity and profit or loss by Rs. 782 (March 31, 2024 : Rs. 1,263)

Net Investment hedges

A foreign currency exposure arises from the Group's net investment in its foreign subsidiaries that have a USD functional currency. The risk arises from the fluctuation in spot exchange rates between the USD and the INR, which causes the amount of the net investment to vary.

The hedged risk in the net investment hedge is the risk of a weakening USD against the INR that will result in a reduction in the carrying amount of the Group's net investment in its foreign subsidiaries.

During the previous year, the Group designated a USD denominated loan as a hedging instrument to hedge its net investment in foreign operation of its foreign subsidiaries, which mitigates the foreign currency risk arising from the subsidiary's net assets. During the current year, the USO denominated loan has been repaid.

To assess hedge effectiveness, the Group determines the economic relationship between the hedging instrument and the hedged item by comparing changes in the carrying amount of the debt that is attributable to a change in the spot rate with changes in the investment in the foreign operation due to movements in the spot rate (the offset method). The Group's policy is to hedge the net investment only to the extent of the debt principal.

M•rch 31, l025
Particulars	Nominal Amount	Assets	Llabllltles	Balance sheet Item where the hedging rnsuum~nt In include-cl	Change In value of hedging instrument recognised in oa	Hedge ineffectiveness recognised in profit or loss
Hedging Instrument Foreign exchange denominated debt (USD)	7,689		(7,689)	Borrowings	(304)
Hedged item USD net investment	7,689	7,689		Net investment	304

Partlculars	Nominal Amount	Assets	Llabllllles	Morch31 l024 Balance sheet item where the hedging instrument in Included	Change In value of hed1ing Instrument recognised Inoa	Hedge ineffectiveness recognised in nrofit o.r loss
Hedging Instrument Foreign exchange denominated debt (USD)	12,501		(12,501)	Borrowings	(151)
Hedged item USD net investment	12,501	12,501		Net investment	151
~

The key objective of the Group's capital management isto ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business. The Group focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Group.

The Company's goal is to continue to be able to return excess liquidity to shareholders by continuing to distribute annual dividends in future periods.

The amount of future dividends of equity shares will be balanced with efforts to continue to maintain an adequate liquidity status.

The capital structure as of March 31, 2025 and March 31, 2024 was as follows:

Particulars	March 31, 2025 March 31, 2024
Total equity attributable to owners of the Company	2,16,440	1,97,837
As a percentage of total capital	55%	56%
Long-term borrowings	1,24,054	1,29,324
Short-term borrowings	53,501	27,972
Total borrowings	1,77,555	1,57,296
Debteequity ratio	45%	44%
Totol apltal (Equity acnd Borrowings)	3,93,995	3,55,133

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

38. Tax expenses

(a) Amount recognised in Statement of profit and loss	March 31. 2025	March 31. 2024
Current tax	3,693	3,143
Deferred tax expense/ (income) related to:
MAT credit written off/ entitlement	554	(774)
Tax expense on removal of indexation benefit•	199
Origination and reversal of temporary differences	126	(95)
Tax expense for the year	4,572	2,274
(b) Reconciliation of effective tax rate
Profit/ (loss) before tax
Profit before tax	18,866	15,252
Tax at statutory income tax rate 25.17% (March 31, 2024- 25.17%)	4,749	3,839
Tax effects of amounts which are not deductible I (taxable) in calculating taxable income
Difference in overseas/domestic tax rates	1,769	1,193
Exempt income and other deductions	(2,326)	(2,040)
Non-deductible expense/ (income)	514	(209)
Tax losses on which no deferred tax has been recognised	496	263
Tax expense on removal of indexation benefit	199
Fair value & dilution gain in associate		(911)
Share in loss/ (profit) of joint venture and associate		212
Difference in rates for Top-up Tax	444	510
Tax for earlier years	(69)	(334)

(i) Amounts for year ended March 31, 2025, includes tax impact on sale on business [refer note 42C).

*Pursuant to amendment in The Finance Act, 2024, resulting in withdrawal of indexation benefit on Long-Term Capital Gain, the Company has written off Deferred Tax Asset created towards indexation benefit on Land amounting to Rs. 199. (if . 0

Others [refer note (i) below] Income tax expense

(THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK)

(1,204) (249) 4,572 2,274

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

38. Tax expenses (continued)

(d) Recognised deferred tax assets and liabilities

The following is the movement of deferred tax assets/ liabilities presented in the consolidated balance sheet

(742)

For the year ended March 31, 2025	Opening balance	Others	Recognised in profit or loss	Recognised inOCI	Exchange difference	Closing balance
Deferred tax liabilities
Property, plant and equipment and intangible assets	3,742	(5)	(253)		1	3,485
Intangible assets acquired in business combination [refer note 42A]	2,852		999		90	3,941
Goodwill	894		3,748		73	4,715
Derivative assets	507		159	(388)		278
Deferred consideration	215	(24)	(196)		5
Others			(387)			(387)
Gross deferred tax liabilities	8,210	(29)	4,070	(388)	169	12,032
Deferred tax assets
Provision for employee benefits	607	11	306	24	9	957
Allowance for doubtful debts	26		30			56
Other deductible expenses	78		42		55	175
MAT credit entitlement	3,419	105	(549)			2,975
Deferred revenue	80		8			88
Carry forward losses	2,405		3,677			6,082
Others	853	(39)	{323)	33	175	699
Gross deferred tax assets	7,468	77	3,191	57	239	11,032

For the year ended March 31, 2024	Opening balance	Impact of Business combination [note 42A]	Recognised in profit or loss	Recognised inOCI	Exchange difference	Closing balance
Deferred tax liabilities
Property, plant and equipment and intangible assets	3,771		(128)		99	3,742
Intangible assets acquired in business combination	2,852					2,852
[refer note 42A]
Goodwill	654		231		9	894
Derivative assets	155		(329)	681		507
Deferred consideration	385		(166)		(4)	215
Others
Gross deferred tax liabilities	7,817		(392)	681	104	8,210
Deferred tax assets
Provision for employee benefits	525		60	22		607
Allowance for doubtful debts	119		(93)			26
Other deductible expenses	180		(102)			78
MAT credit entitlement	2,723		696			3,419
Deferred revenue	93		(13)			80
Carry forward losses	2,603		(198)			2,405
Others	766		127	(6)	(34)	853
Gross deferred tax assets	7,009		477	16	(34)	7,468
	(808)		869	(665)	(138)	(742)

106

(879)

445

70

(1,000)

Deferred tax balances

Deferred tax assets (net) Deferred tax liabilities (net)

2,577

March 31, 2024

3,173

March 31, 2025

Blocon Umlted

Notes to consolldated flnanclal statements for the year ended March 31, 2025

(All amounts are in lndlan Rupees Milllon, except share data and per share data, unless otherwise stated)

1. lnlt.te1J In Oth!C t ntltle.i

(a) Subsidiaries

The Group's subsidiaries as at March 31, 2025 are set out below. Unless otherwise stated, they have share capital consisting solely of equity shares that are held by the Group, and proportion of ownership interests held equals the voting rights held by the Group. The country of Incorporation or registration is also their principal place of business.

No. Name of entity	Country of	OWnenhip Interest held by the		0.Vnershlp Interest held by the		Principal activities
	Incorporation	Group March 31, 2025	March 31, 2024	non-controlling Interest March 31, 2025	March 31, 2024
1 Syngene International Limited	India	ll 52.5	% 54,9	% 47,5	%	45.1 Contract research and
2 Biocon Pharma Limited ('BPL')	India	100.0	100.0			manufacturing services Biopharmaceutical
3 Bfocon Biologics Limited•	India	76.8	75.6	23.2		manufacturing 24.4 Biopharmaceutical manufacturing
4 Bk>con Biosphere Limited	India	100-0	100.0			Biopharmaceutical manufacturing
5 Biocon Academy	lndla	100.0	100.0			Not for profit organisation
6 Syngene Scientific Solutions Limited	India	52.5	54.9	47.5		45.1 CRAMS and dlnical research
7 Syngene Manufacturing Solutions Limited	India	52.S	54.9	47.5		services 45.1 Manufacture of enzyme products and medicinal goods
8 Biocon SA	Switzerland	100,0	100.0			Research and development
9 Biocon Sdn Bhd	Malaysia	76.8	75.6	23.2		24.4 Biopharmaceutical manufacturing and sale of biosimilar products
10 Biocon Biologics Healthcare Malaysia SON. BHD	Malaysia	76.8	75,6	23.2		24.4 Sale of biopharmaceutical products
11 Biocon Biolo!I« u~ l.lmltod	United Kingdom	76.8	75.6	23-2		24.4 Sale of biosimilar products
12 Blocon Pharma Uk Limited	United Kingdom	100.0	100.0			Sale of pharmaceutical products
13 Blosimilars Newco Limited	United Kingdom	76.8	75.6	23.2		24.4 Sale of biopharmaceutical products
14 Blocon Biologics Inc.	United States	768	75.6	23,2		24.4 Business support and marketing for Biosimilar products
15 Blocon Pharma Inc	United States	100.0	100.0			Sale of pharmaceutical products
16 Syngene USA Inc.	United States	52.S	54,9	47.5		45.1 Marketing and business
17 Bfocon Biologics do Brasil Ltda.	Brazil	76,8	75.6	23.2		development support servicl!s 24.4 Sale of biopharmaceutical products
18 &lo <on biologl«="" fz-uc<="" td="">	Dubai	76.8	75.6	23.2		24.4 Sale of biopharmaceutical products	Dubai	76.8	75.6	23.2		24.4 Sale of biopharmaceutical products
19 Blocon FZ LLC.	Dubai	100.0	100.0			Sale of pharmaceutical products
20 Bfocon Pharma Ireland Limited	Ireland	100.0	100.0			Sale of pharmaceutical products
21 Biosimilars Collaborations Ireland Limited	Ireland	76 8	75.6	23.2		24.4 Sale of biopharmaceutical products
22 Blocon Pharma Malta Limited	Malta	100.0	100.0			Sale of pharmaceutical products
23 Biocon Pharma Malta I Limited	Malta	100.0	100.0			Sale of pharmaceutical products
24 Biocon Biologics Canada Inc.	Canada	76 8	75,6	23,2		24.4 Sale of biopharmaceutical products
25 Bfocon Biologics Germany GmbH	Germany	76.8	75.6	23.2		24.4 Sale of biophannaceutical products
26 Biocon Biologics France S.A S	France	76.8	75.6	23.2		24.4 Sale of biopharmaceutical products
27 Biocon Biologics Spain, S.L	Spain	76 8	75.6	23,2		24.4 Sale of biopharmaceutical products
28 Bfocon Biologics Switzerland AG	Switzerland	76.8	75.6	23.2		24.4 Sale of biopharmaceutical products
29 Biocon Biologics Belgium BV	Belgium	76.8	75.6	23.2		24.4 Sale of biophannaceutical products
30 Biocon Biologics Finland DY	Finland	76.8	75.6	23.2		24.4 Sale of biopharmaceutical products
31 Blocon Generics Inc. 32 Biocon Biologics Morocco S.A.R LA.U	United States Morocco	100.0 76.8	100.0 75.6	23.2 23,2		24.4 Sale of biopharmaceutical products 24.4 Sale of biopharmaceutical
33 Blocon Biologics Greece SINGLE MEMBER P.C	Greece	76.8	75.6	23.2		products 24.4 Sale of biophannaceutical
34 Biocon Biologics South Africa (PTY) Ltd	South Africa	76.8	75.6	23.2		products 24.4 Sale of biopharmaceutical
35 Blocon Biologics (Thailand} Co. Ltd	Thailand	76 8	75.6	23.2		products 24.4 Sale of biopharmaceutical
36 Biocon Biologics Philippines Inc	Philippines	76,8	75.6	23.2		products 24.4 Sale of biophannaceutical
37 Biocon Biologics Italy S.R.l	Italy	76.8	75.6	23.2		products 24.4 Sale of biophannaceutical
38 Biocon Blologics Croatia LLC	Croatia	76.8	75.6	23.2		products 24.4 Sale of biopharmaceutical
39 Blocon Biologics Global PLc•	United Kingdom	76.8		23.2		products NA Sale of biopharmaceutical products

• Also refer note 16

^I.. , ^I~ ^I--~,

Notes to consolidated financial statements for the year ended March 311 2025

(All amounts are In Indian Rupees Milllon, except share data and per share data, unless otherwise stated)

39, lntrrHt In gther entitles (co-ntinued)

(b) Non-controlllng Interests

Below is the summarised consolidated financial Information for Syngene International Limited and Biocon Biologics Limited that has non-controlling interests that is material to the Group as on March 31, 2025. The amounts disclosed for the subsidiary are before inter-company eliminations,

Syngene lnternatlonal Limited

Particulars
	March 31, 2025	March 31, 2024
Non-current assets	45,086	41,926
Current assets	22,873	19,590
Total assets	67,959	61,516
Non-current liabilities	6,727	7,496
Current liabilities	13,964	11,443
Total liabilities	20,691	18,939
Net assets	47,268	42,577
Accumulated non-controlling interest	22,495	19,440
Summarised statement of profit and loss
Particulars	March 31, 2025	March 31, 2024
Revenue from operations	36,424	34,536
Profit for the year	4,962	5,100
Other comprehensive income	(147)	1,426
Total comprehensive Income	4,815	6,526
Total comprehensive income allocated to non-controlling interests	2,246	2,944
Dividends paid to non-controlling interests	(229)	(226)
Summarised statement of cash flows
Particulars	March 31, 2025	March 31, 2024
Cash flows generated from operating activities	11,676	10,422
Cash flows used in investing activities	(7, 448)	(4,956)
Cash flows (used in) from financing activities	(1, 417)	(5, 514)
Not (decrease) in cash and cash equivalents	2,811	(43)
Blocon Biologics Limited
Summarised balance sheet
Particulars	March 31, 2025	March 31, 2024
Non-current assets.	3,34,599	3,30,169
Current assets	1,08,855	1,00,923
Total assets	4,43,454	4,31,092
Non-current liabilities	1,40,598	1,28,128
Current liabilities Total liabilities	1,05,928 2,46,526	1,19,555 2,47,683
Not assets	1,96,928	1,83,409
Accumulated non-controlling interest	38,190	35,471
Summarised statement of profit and loss
Particulars	March 31, 2025	March 31, 2024
Revenue from operations	90,174	88,242
Profit for the year	8,896	2,182
Other comprehensive income	4,084	2,610
Total comprehensive income Total comprehensive income allocated to non-controlling interests	12,980 2,719	4,792 988
Summarised statement of cash flows
	March 31, 2025	March 31, 2024
	23,729	21,867
Particulars Cash flows generated from operating activities Cash flows used in investing activities Cash flows (used in) / generated from financing activities	(1,371) (9,200)	(7,338) (17, 719)

The Group has onty one joint venture in the name of NeoBiocon FZ LLC (•NeoBiocon"}, incorporated in Dubai as at March 31, 2025 holding 49% {March 31, 2024: 490/4) of the equity stake and accounted for using the equity method. NeoBiocon has share capital solely consisting of equity shares, which are held directly by ownership interest in the same proportion of voting rights held.

Summarised balance sheet of NeoBiocon is as follows:
Particulars	March 31, 2025	March 31, 2024
Non-current assets
Current assets	70	379
Total assets	75	380
Non-current liabilities		18
Current liabilities	41	120
Total liabilities	41	138
Not assets	34	242
Percentage ownership interest	49%	49%
Accumulated Group's share of net assets

summarised statement of pn,fil and los5 of N~o81oc-on

Particulars	March 31, 2025	March 31, 2024
Revenue from operations		47
Profit/(Loss) for the year	(153)	(155)
Total comprehensive income	(153)	(156)
Share of Profit/(loss) from joint venture		(77)

(d) fnlete,,:t In :,uocla~c

hrtkul rs MM<h 31, 2025 r<h 31, 2024

IATRICa Inc. - 4,285,714 {March 31, 2024- 4,285,714) Series A Preferred Stock at US\$ 0.70 each, par value US\$ 0.00001 each

Less: Provision for decline, other than temporary, in the value of non-current investments

131

(131)

131 (131)

	Total investment in associate and joint venture (c+d)
--	-------------------------------------------------------	--	--	--

Biocon Limited Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

40. Segment Reporting

Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker ("CODM") evaluates the Group's performance based on an analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments. The accounting principles used In the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.

April 1, 2024 to March 31, 2025

Particulars	Generics	Biosimilars	Research	Unallocated/ Eliminations	Total
Revenues
External revenue	27,468	89,292	35,857		1,52,617
Inter-segment revenue	2,707	882	567	(4,156)
Total revenues	30,175	90,174	36,424	(4,156)	1,52,617
Costs
Segment costs	(26,659)	(68,989)	(25,306)		(1,20,954)
Inter-segment costs	(547)	(2,183)	(700)	3.430
Results
Other income including interest	796	11,275	718	(707)	12,082
Operating profit					43,745
Depreciation/ Amortisation	(1,817)	(11,151)	(4,326)	424	(16,870)
Finance costs	(193)	(8,250)	(531)		(8,974)
Share of profit/(loss) of joint venture and associate
Segment results	1,755	10,876	6,279	(1,009)	17,901
Exceptional items, net				965	965
Income taxes - Current and deferred				(4,572)	(4,572)
Non-controlling interests				(4,161)	(4,161)
Profit after taxes attributable to shareholders					10,133
Other Information
Segment assets	83,271	4,44,400	67,959	(7, 657)	5,87,973
Total assets					5,87,973
Segment liabilities	31,004	2,39,121	20,691	20,032	3,10,848
Total liabilities					3,10,848

April 1, 2023 to March 31, 2024

Particulars	Generics	Biosimilars	Novels	Research	Unallocated/ Eliminations	Total
Revenues
External revenue	25,001	88,183		34,373		1,47,557
Inter-segment revenue	2,984	59		513	(3,556)
Total revenues	27,985	88,242		34,886	(3,556)	1,47,557
Costs
Segment costs	(24,832)	(65,669)	148	(24,217)		(1,14,570)
Inter-segment costs	(86)	(2,432)		(526)	3,044
Results
Other income including interest	888	1,754	5,353	906	(246)	8,655
Operating profit						41,642
Depreciation / Amortisation	(1,568)	(10,297)		(4,258)	435	(15,688)
Finance costs	(6)	(8,641)		(472)	(625)	(9,744)
Share.of profit of joint venture and associate	(77)		(765)			(842)
Segment results	2,304	2,957	4,736	6,319	(948)	15,368
Exceptional items, net					(116)	(116)
Income taxes - Current and deferred					(2,274)	(2,274)
Non-controlling interests					(2,753)	(2,753)
Profit after taxes attributable to shareholders						10,225
Other Information
Segment assets	71,067	4,31.435		61,516	(3,311)	5,60,707
Total assets						5,60,707
Segment liabilities	19.757	2,57,344		18,939	11,919	3,07,959
Total liabilities						307,959

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

40. Segment Reporting (continued)

Geographical segments

Revenue from operations	Year ended March 31, 2025	Year ended March 31, 2024
India	9,765	16,079
United States of America	70,423	64,550
European union (including Ireland)	38,481	35,169
Rest of the world	33,948	31,759
Total	1,52,617	1,47,557
Non-current assets	March 31, 2025	March 31, 2024
India	1,04,200	96,612
European union (including Ireland)	65,673	65,761
United Kingdom	1,99,731	1,97,217
Malaysia	31,934	27,664
Rest of the world	7,934	3,395
Total	4,09,472	3,90,649

Note: Non-current assets excludes financial assets, income tax and deferred tax assets.

Significant clients

There is no revenue from single customer which is more than 10 percent of the Group's total revenue for the year ended March 31, 2025 and March 31, 2024.

Segment revenue and results

The expenses that are not directly attributable and that can not be allocated to a business segment on a reasonable basis are shown as unallocated corporate expenses. Further, the Group has classified interest on loans raised by the Parent company and its wholly owned subsidiary to fund the business acquisition as unallocable corporate expenses.

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consist principally of fixed assets and current assets. Segment liabilities comprise of liabilities which can be directly allocated against the respective segments. Assets and liabilities that have not been allocated between segments are shown as part of unallocated corporate assets and liabilities respectively.

Blocon Umlted

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are In Indian Rupees Million, except share data and per share data, unless otherwise stated)

1. Additional information, as required under Schedule Ill of the Act, of enterprises consolidated as subsidiary/associates/joint venture

Name of Entity	Net assets as at March 31, 2025		Share in profit or loss for the year ended March 31, 2025		Share in other comprehensive income for the year ended March 31, 2025		Share In total comprehensive income for the year ended March 31, 2025
	As a % of consolidated net assets	Amount	As a % of consolidated profit or loss	Amount	As a % of consolidated other comprehensive Income	Amount	As a% of consolidated total comprehensive income	Amount
Holding Company Biocon Limited	18%	1,15,244	33%	6,093	9%	(124)	35%	5,969
Subsidiaries
Indian
Syngene International Limited	4%	23,894	13%	2,381	6%	(93)	13%	2,288
Syngene Scientific Solutions Limited		1,689	1%	244		(3)	1%	241
Syngene Manufacturing Solutions limited Biocon Pharma Limited		9 817	4%	823		(4)	5%	819
Biocon Biologics Limited	22%	1,44,702	35%	6,444	74%	(1,072)	31%	5,372
Biocon Biosphere Limited		(95)	-1%	(186)	11%	(155)	-2%	(341)
Biocon Academy		1
Foreign		5,536		18				18
Biocon SA	1%	(551)	2%	371			2%	371
Biocon Sdn Bhd Biocon Biologics UK Limited	18%	1,17,625	8%	1,413			8%	1,413
Biosimilars Newco Limited	18%	1,14,231	-22%	(4,117)	60%	(874)	-29%	(4,991)
Biosimiiars Collaboration ireiand Limited	9%	55,758	-4%	(688)			-4%	(688)
Biocon Biologics Canada Inc.		93		67				67
Biocon Biologics Germany GmbH		136	1%	124			1%	124
Biocon Pharma Inc.		2,401	1%	115	-1%	16	1%	131
Biocon FZ LLC.		246		89			1%	89
Biocon Biologics Healthcare Malaysia SDN. BHD		(2)		(1)				(1)
Syngene USA Inc.	1%	4,438		38				38
Biocon Pharma UK limited		99		10				10
Biocon Pharma Ireland Limited		6		(1)				(1) 975
Biocon Biologics Inc.		1,705	5%	975 (14)			6%	(14)
Biocon Biologics do Brasil Ltda.		73 103		10				10
Biocon Biologics FZ-LLC Biocon Biologics France S.A.S		134		81				81
Biocon Biologics Spain, S.L.		16		15				15
Biocon Biologics Switzerland AG		11		8				8
Biocon Biologics Belgium BV		12		9				9
Biocon Biologics Finland OY		5		4				4
Biocon Generics Inc.		648		(53)	-4%	59		6
Biocon Biologics Morocco S.A.R.LA.U		59		16				16
Biocon Biologics Greece SINGLE MEMBER P.C		17		13				13
Biocon Biologics South Africa (PTY) Ltd		2		2				2
Biocon Biologics (Thailand) Co. Ltd		63						4
Biocon Biologics Philippines Inc		21		4 2				2
Biocon Biologics Italy S.R.L		3 2		2				2
Biocon Biologics Croatia LLC Biocon Biologics Global PLC		104	1%	102			1%	102
Biocon Pharma Malta Limited		(4)
Biocon Pharma Malta I Limited				4			N {1JJ:: .:'"7Q, t1" 0	4
							* ~ o<;;;."v

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are In Indian Rupees MIiiion, except share data and per share data, unless otherwise stated)

Total		2,77,125		14,294		4,367		18,661
Adjustment arising on consolidation		(3,72,811)		(4,285)		5,813		1,528
Gross Total	100%	6,49,936	100%	18,579	100%	(1,446)	100%	17,133
Non-controlling interest	9%	60,685	22%	4,161	-55%	804	30%	4,965
Associates Foreign IATRlca Inc., USA
Joint venture Foreign NeoBiocon FZ LLC.

Blocon Umlted

Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are In Indian Rupees MIiiion, except share data and per share data, unless otherwise stated)

41. Additional information, as required under Schedule 111 of the Act, of enterprises consolidated as subsidiary/associates/joint venture (continued)

Name of Entity	Net assets as at March 31, 2024		Share In profit or loss for the year ended March 31, 2024		Share in other comprehensive Income for the year ended March 31, 2024		Share in total comprehensive income for the year ended March 31, 2024
	As a % of consolidated net assets	Amount	As a % of consolidated profit or loss	Amount	As a % of consolidated other comprehensive income	Amount	As a % of consolidated total comprehensive Income	Amount
Holding Company
Biocon limited	18%	1,09,123	14%	1,193	0%	(7)	11%	1,186
Subsidiaries
Indian
Syngene International limited	4%	22,475	28%	2,364	35%	788	30%	3,152
Syngene Scientific Solutions limited		1,450	5%	396		(5)	4%	391
Syngene Manufacturing Solutions limited		9
Biocon Pharma limited		(14)	4%	348	1%	30	4%	378
BJocon Biologics limited	23%	1,38,789	38%	3,231	-16%	{355)	27%	2,876
Biocon Biosphere Limited		256		(18)	-1%	(22)		(40)
Biocon Academy
Foreign Biocon SA	1%	6,648	16%	1,311			12%	1,311
Biocon Sdn Bhd		(1,495)	-21%	(1,786)			-17%	(1,786)
Biocon Biologics UK Limited	18%	1,07,971	57%	4,788			45%	4,788
Biosimilars Newco Umited	19%	1,12,258	-33%	(2,746)	28%	638	-20%	(2,108}
Biosimilars Collaboration Ireland limited	8%	46,737	-42%	(3,546)			-33%	(3,546)
Biocon Biologics Canada Inc.		29		29				29
Biocon Biologics Germany GmbH		12		9				9
Biocon Pharma Inc.		2,215	3%	222			2%	222
Biocon FZ LLC.		153	1%	53				53
Biocon Biologics Healthcare Malaysia SON. BHD		(1)
Syngene USA Inc.		127		40				40
Biocon Pharma UK Limited		83		(9)				(9)
Biocon Pharma Ireland Limited		7		(17)				(17)
Biocon Biologics Inc.		681	7%	623			6%	623
Blocon Biologics do Brasil Ltda. •		85		4				4
Biocon Biologics FZ-LLC		91		7				7
Biocon Biologics France S.A.S		32		31				31
Blocon Biologics Spain, S.L.		3		4				4
Biocon Biologics Switzerland AG		5
Biocon Biologics Belgium BV		4
Biocon Biologics Finland OY		1
Biocon Generics Inc.		625
Biocon Biologics Morocco S.A.R.L.A.U		1		1				1
Biocon Biologics Greece SINGLE MEMBER P.C		3		3				3
Biocon Biologics South Africa (PTY) Ltd								(1)
B.iocon Biologics (Thailand) Co. Ltd		(1)		(1)
Biocon Biologics Philippines Inc		17
Biocon Biologics Italy S.R.L		1
Biocon Biologics Croatia LLC
Biocon Pharma Malta Limited Biocon Pharma Malta I limited		(3) (3)		(3)				(3) I

./ I \ .~_·:_,

Blocon Umlted

Notes to consolldated flnandal statements for the year ended March 31, 2025

(All amounts are In Indian Rupees Mllllon, except share data and per share data, unless otherwise stated)

Total		2,52,748		12,978		3,867		16,845
Adjustment arising on consolidation		(3,50,537)		4,532		1,621		6,153
Gross Total	100%	6,03,285	100% Sell Starting	8,446	100%	2,246	100%	10,692
Non-controlling interest	9%	54,911	33%	2,753	53%	1,179	37%	3,932
Bicara Therapeutics Inc.			$-9%$	(765)		r an	$-7%$	(765)
IATRICa Inc., USA					m.	Ιŵ.
Foreign
Associates
NeoBiocon FZ LLC.	$\sim$		$-1%$	(77)		$-1.4$	Or of	(77)
Foreign
Joint venture

C!I / ''° "O

Biocon Limited Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

42A. Acqui,lllon through Slump Sale:

On 04 July 2023, Board of Directors of Syngene entered into a binding term sheet for acquiring Unit 3 biologics manufacturing facility in Bangalore, India, from Stelis Biopharma Limited (SBL). The unit has been acquired effective 01 December 2023 on a slump sale basis at a total cash consideraion of Rs. 5,632.

The acquisition will add 20,000 litres of installed biologics drug substance manufacturing capacity for Syngene. The site has the potential for future expansion of up to a further 20,000 litres of biologics drug substance manufacturing capacity. It also includes a commercial scale, high speed, fill-finish unit - an essential capability for drug product manufacturing.

The Group has carried out a preliminary purchase price allocation between tangible assets and other balances taken over to assess the fair value as on the acquisition date and accordingly recorded a capital reserve of Rs 39.

The following table summarises major class of the assets and liabilities taken over:

Particulars
Property, plant and equipment	6,207
Other assets	104
Capital creditors	(638)
Other liabilities	(2)
Value of business taken over (A)	5,671
Purchase consideraion (B)	5,632
Capital reserve (C=B-A)	(39)

42B. Acquisltlon through Slump Sale:

During the year ended March 31, 2025, Syngene USA Inc. (wholly-owned subsidiary of Syngene) has acquired biologics site In the USA fitted with multiple monoclonal antibody (mAbs) manufacturing lines from Emergent Manufacturing Operations Baltimore, LLC (a subsidiary of Emergent BioSolutions Inc.). The transaction has been accounted for as an 'asset acquisition' under Ind AS 103.

The costs incurred till March 31, 2025, eligible for capitalization are being accumulated as Capital Work In Progress amounting to Rs. 2,981. An amount of Rs. 311 has been capitalized as Land. These amounts include pre-transaction costs of Rs. 101.

42C. During the year ended March 31, 2024, BBL had entered into a long-term commercial collaboration agreement with Eris Lifesciences for the sale of its business in relation to Metabolics, Oncology, and Critical Care products in India for a consideration of Rs. 12,420. As a part of deal BBL has signed a 10-year supply agreement with Eris. The transaction came into effect on April 1, 2024. the sale value is accounted post taking into account working capital, advance for supply agreement and expenses incurred towards commercial collaboration. Consequential tax impact of Rs. 2,520 is included within tax expense for the year ended March 31, 2025.

43 Goodwill

Goodwill arising upon business combination is not amortized but tested for impairment annually or more frequently if there is any indication that the cash generating unit to which goodwill is allocated is impaired.

Particulars	March 31, 2025	March 31, 2024
Opening Balance	1,63,460	1,61,098
Goodwill arising on business combination		69
Other adjustments
- Foreign currency translation adjustment	4,133	2,293
Closing Balance	1,67,593	1,63,460

For the purposes of impairment assessment, the Group is considered as single Cash generating unit. The recoverable amount of the above cash generating units have been determined using a value-in-use model. Value-in-use is generally calculated as the net present value of the projected post-tax cash flows plus a terminal value of the cash generating unit. Initially, a post-tax discount rate is applied to calculate the net present value of the post-tax cash flows. Key assumptions upon which the Group has based its determinations of value-in-use include:

a) Estimated cash flows for ten years, based on management's projections.

b) A terminal value arrived at by extrapolating the last forecasted year cash flows to perpetuity, using growth rate ranging from 1% to 3%. This long-term growth rate takes into consideration external macroeconomic sources of data. Such long-term growth rate considered does not exceed that of the relevant business and industry sector.

c) The post tax discount rate used is 14% based on the BBL's weighted average cost of capital.

The Group believes that any reasonably possible change in the key assumptions on which a recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash-generating unit.

Notes to consolidated financial statements for the year ended March 31, 2025 (All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

44. Other notes

Bicara Therapeutics Inc, (Bicara), U.S., Is a clinical-stage biotechnology company developing dual-action biologics designed to spur a potent and durable immune response In the tumor microenvironment. Bicara Is actively engaged in advancing a robust pipeline of first-in-class bifunctional antibodies being developed by a global team.

During the year ended March 31, 2024, pursuant to fund raise by Bicara, the Group's interest in Bicara was diluted thereby resulting in loss of significant influence over the investee. Consequently, the Group fair valued its investment resulting in a gain of Rs. 4,254 in the consolidated financial statements, and was disclosed under 'Other income'.

Prior to the Series C financing, the Group accounted for its investments in Bicara using the equity method as it had significant influence. Consequently, the Group recorded dilution gain of Rs. 1,053 for the year ended March 31, 2024, disclosed under 'Clther income' in the consolidated financial statements.

During the year ended March 31, 2025, the Group has recorded a fair value gain of Rs. 272, within "Clther Comprehensive Income" in the consolidated financial statements.

45. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Group to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Group (Ultimate Beneficiaries).

The Group has not received any fund from any party(s) (Funding Party) with the understanding that the Group shall whether, directly or Indirectly lend or invest in other persons or entities identified by or on behalf of the Group ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46. Other statutory information

(i) The Group does not have any Benaml property, where any proceeding has been initiated or pending against the Group for holding any Benami property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

(ii) The Group does not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

(iii) The Group does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(iv) The Group is not declared as wilful defaulter by any bank or financial institution or government or any government authority.

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

BIOCON LI~\, Notes to consolidated financial statements for the year ended March 31, 2025

(All amounts are in Indian Rupees Million, except share data and per share data, unless otherwise stated)

47 (a) The Board of Directors of the Company, at their meeting held on May 16, 2024, had proposed a final dividend of Rs. 0.5 per equity share of face value of Rs . 5/ each. The same was approved by the shareholders in the Annual General Meeting of the Company and has been distributed to the shareholders of the Company during the year ended March 31, 2025.

47 (b). On April 24, 2024, the Board of Directors of Syngene recommended a final dividend of Rs. 1.25 per equity share of Rs . 10/-. The share holders of Syngene approved the dividend in the Annual General Meeting of Syngene held on July 24, 2024 and was subsequently paid.

48. Events after reporting period

a. On April 23, 2025, the Board of Directors of Syngene have approved an allotment of 402,439 equity shares of Rs . 10/- {Rupees Ten each) of 5yngene to Syngene Employees Welfare Trust at face value.

b. On April 23, 2025, the Board of Directors of Syngene recommended a final dividend of Rs . 1.25 per equity share of Rs . 10/-. The proposed dividend is subject to the approval of the shareholders of Syngene in its Annual General Meeting.

c. On May 08, 2025, the Board of Directors of the Company recommended a final dividend of Rs. 0.50 per equity share of Rs. 5/-.each amounting to Rs. 600. The proposed dividend is subject to the approval of the shareholders of the Company in its Annual General Meeting.

cl The Board of Directors at its meeting held on April 23, 2025, has approved raising of funds by the Company by way of issuance of any instrument or securities for an aggregate amount of upto Rs 45,000, in one or more tranches to meet certain financial commitments and/ or debt obligations of the Company and its subsidiary, Biocon Biologics Limited and/ or for other purposes as determined by the Board.

As per our report of even date attached

for a s R & Co. LLP Chartered Accountants Firm Regls on Number: 101248W/W-100022 ,

for and on behalf of the Board of Directors of Biocon Limited

Kiran Mazumdar-Shaw Executive Chairperson DIN : 00347229

Bengaluru May 08, 2025

~)

Managing Director & CEO DIN: 03230757

Mumbai May 08, 2025