Dr. Lal Pathlabs Limited — Audit Report / Information 2021

May 21, 2021

May 21, 2021

The National Stock Exchange of India Limited The Bombay Stock Exchange Limited Exchange Plaza 15th Floor, Phiroze Jeejeeboy Towers Bandra Kurla Complex, Bandra (E) Dalal Street, Mumbai - 400051 Mumbai – 400001

Subject: Outcome of Board Meeting held on May 21, 2021

Ref: Compliances under SEBI (Listing Obligation and Disclosure Requirement) Regulations 2015 ("Listing Regulations")

Dear Sir/Madam,

Please take note that the Board of Directors in their meeting held today i.e. May 21, 2021 approved following matters:

• 1. The Audited Standalone and Consolidated Financial Results ("Results") of the Company for the Quarter and Financial Year ended March 31, 2021. A copy of the signed Results along with Auditors Report and Declaration in respect of Audit Report with unmodified opinion under Regulation 33 of the Listing Regulations is attached herewith.
• 1. Convening of 27th Annual General Meeting (AGM) of the Company on Thursday July 29, 2021 through Video Conferencing/Other Audio Visual Means (VC/OVAM).
• 1. Recommendation of final dividend of Rs. 8 /- per equity share (@ 80 % on a face value of Rs. 10/- per share) for the year ended March 31, 2021. The dividend, if approved by the shareholders at the ensuing Annual General Meeting (AGM) will be dispatched/ credited within 30 days of the AGM.
• 1. Pursuant to Regulation 42 of Listing Regulations, the Board has fixed July 22, 2021 as the Record Date for the purpose of payment of Final Dividend for Financial Year 2020-21 (if approved by the Shareholders).

Symbol	Typeofsecurity	BookClosurebothdaysinclusive	RecordDate	Purpose
NSE -LALPATHLABBSE –539524	Equity	Not Applicable	ThursdayJuly 22,2021	27th Annual General1.Meeting (AGM)2.Payment of dividend, ifapproved at the ensuingAnnual General Meeting

The Board Meeting commenced at 12 Noon and concluded at 3:27 P.M.

We request you to please take the same on record.

Thanking You,

Encl: As above

May 21, 2021

The National Stock Exchange of India Limited The Bombay Stock Exchange Limited Exchange Plaza 15th Floor, Phiroze Jeejeeboy Towers Bandra Kurla Complex, Bandra (E) Dalal Street, Mumbai - 400051 Mumbai – 400001

Subject: Declaration pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligation and Disclosure Requirement) Regulations 2015.

Dear Sir/Madam,

Pursuant to the provisions of Regulation 33(3)(d) of the SEBI (Listing Obligation and Disclosure Requirement) Regulations 2015, we hereby confirm that the Audit Report issued by M/s Deloitte Haskins & Sells LLP, Statutory Auditors of the Company on the Audited Standalone and Consolidated Financial Results for the Quarter and Financial Year ended March 31, 2021 is with Unmodified Opinion.

We request you to please take the same on record.

Thanking You,

Chartered Accountants

7th Floor, Building 10, Tower B DLF Cyber City Complex DLF City Phase - II Gurgaon – 122 002, Haryana India Tel: +91 124 679 2000 Fax: +91 124 679 2012

INDEPENDENT AUDITOR'S REPORT ON AUDIT OF ANNUAL CONSOLIDATED FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS

To The Board of Directors of Dr. Lal PathLabs Limited

Opinion and Conclusion

We have (a) audited the Consolidated Financial Results for the year ended 31 March, 2021 and (b) reviewed the Consolidated Financial Results for the quarter ended 31 March, 2021 (refer 'Other Matters' section below), which were subject to limited review by us, both included in the accompanying "Statement of Consolidated Financial Results for the Quarter and Year Ended 31 March, 2021" of Dr. Lal PathLabs Limited ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), ("the Statement") being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").

(a) Opinion on Annual Consolidated Financial Results

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 audit reports of the other auditors on separate financial statements of subsidiaries referred to in Other Matters section below, the Consolidated Financial Results for the year ended 31 March, 2021:

• (i) includes the results of the entities listed in Annexure A
• (ii) is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
• (iii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India of the consolidated net profit and consolidated total comprehensive income and other financial information of the Group for the year ended 31 March, 2021.

(b) Conclusion on Unaudited Consolidated Financial Results for the quarter ended 31 March, 2021

With respect to the Consolidated Financial Results for the quarter ended 31 March, 2021, based on our review conducted and procedures performed as stated in paragraph (b) of Auditor's Responsibilities section below and based on the consideration of the review reports of the other auditors referred to in Other Matters section below, nothing has come to our attention that causes us to believe that the Consolidated Financial Results for the quarter ended 31 March, 2021, prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India,

has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Basis for Opinion on the Audited Consolidated Financial Results for the year ended 31 March, 2021

We conducted our audit in accordance with the Standards on Auditing ("SAs") specified under Section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those Standards are further described in paragraph (a) of Auditor's Responsibilities section below. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("the ICAI") together with the ethical requirements that are relevant to our audit of the Consolidated Financial Results for the year ended 31 March, 2021 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in Other Matters section below, is sufficient and appropriate to provide a basis for our audit opinion.

Management's Responsibilities for the Statement

This Statement, which includes the Consolidated Financial Results is the responsibility of the Parent's Board of Directors and has been approved by them for the issuance. The Consolidated Financial Results for the year ended 31 March, 2021, has been compiled from the related audited consolidated financial statements. This responsibility includes the preparation and presentation of the Consolidated Financial Results for the quarter and year ended 31 March, 2021 that give a true and fair view of the consolidated net profit and consolidated other comprehensive income and other financial information of the Group in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards, prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.

The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group for preventing and detecting frauds and other irregularities; 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 respective financial results 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 this Consolidated Financial Results by the Directors of the Parent, as aforesaid.

In preparing the Consolidated Financial Results, the respective Board of Directors of the companies included in the Group are responsible for assessing the ability of the respective entities 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 their respective entities 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 are responsible for overseeing the financial reporting process of the Group.

Auditor's Responsibilities

(a) Audit of the Consolidated Financial Results for the year ended 31 March, 2021

Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Results for the year ended 31 March, 2021 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 this Consolidated Financial Results.

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 Annual Consolidated Financial Results, 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, but not for
• the purpose of expressing an opinion on the effectiveness of such controls. Evaluate the appropriateness of accounting policies used and the reasonableness
• of accounting estimates made by the Board of Directors. Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of
• the Listing Regulations. Conclude on the appropriateness of the Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we 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 Results 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 to
• cease to continue as a going concern. Evaluate the overall presentation, structure and content of the Annual Consolidated Financial Results, including the disclosures, and whether the Annual Consolidated Financial Results represent the underlying transactions and
• events in a manner that achieves fair presentation. Perform procedures in accordance with the circular issued by the SEBI under
• Regulation 33(8) of the Listing Regulations to the extent applicable. Obtain sufficient appropriate audit evidence regarding the Annual Standalone Financial Results of the entities within the Group to express an opinion on the Annual Consolidated Financial Results. We are responsible for the direction,

supervision and performance of the audit of financial information of such entities included in the Annual Consolidated Financial Results of which we are the independent auditors. For the other entities included in the Annual Consolidated Financial Results, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

Materiality is the magnitude of misstatements in the Annual Consolidated Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Annual Consolidated Financial Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Annual Consolidated Financial Results.

We communicate with those charged with governance of the Parent and such other entities included in the Consolidated Financial Results 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.

(b) Review of the Consolidated Financial Results for the quarter ended 31 March, 2021

We conducted our review of the Consolidated Financial Results for the quarter ended 31 March, 2021 in accordance with the Standard on Review Engagements (SRE) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the ICAI. A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with SAs specified under section 143(10) of the Act and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

The Statement includes the results of the entities as listed under paragraph (a)(i) of Opinion and Conclusion section above.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

Other Matters

The Statement includes the results for the Quarter ended 31 March, 2021 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were subject to limited review by us. Our report is not modified in respect of this matter.

We did not audit the financial statements/ financial information of four subsidiaries included in the consolidated financial results, whose financial statements/ financial information reflect total assets of INR 187 million as at 31 March, 2021 and total revenues of INR 46 million and INR 156 million for the quarter and year ended 31 March, 2021 respectively, total net (loss) after tax of INR (4) million and INR (6) million for the quarter and year ended 31 March, 2021 respectively and total comprehensive (loss) of INR (4) million and INR (7) million for the quarter and year ended 31 March, 2021 respectively and net cash flows (net) of INR 29 million for the year ended 31 March, 2021, as considered in the Statement. These financial statements / financial information have been audited / reviewed, as applicable, by other auditors whose reports have been furnished to us by the Management and our opinion and conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of the other auditors and the procedures performed by us as stated under Auditor's Responsibilities section above.

Our report on the Statement is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.

For Deloitte Haskins & Sells LLP Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Jitendra Agarwal Partner (Membership No. 87104) (UDIN: 21087104AAAADV6578)

Place: New Delhi Date: 21 May, 2021

Annexure A

List of entities consolidated

a) Parent Company: Dr Lal PathLabs Limited

b) Subsidiaries held directly

S. No.	Name of the Entity
1	Paliwal Medicare Private Limited
2	Paliwal Diagnostics Private Limited
3	APL Institute of Clinical Laboratory & Research Private Limited
4	Dr. Lal PathLabs Nepal Private Limited
5	Dr. Lal PathLabs International B.V. (liquidated on 20 October, 2020)
6	Dr. Lal Path Labs Bangladesh Private Limited
7	Dr. Lal Ventures Private Limited
8	PathLabs Unifiers Private Limited
9	Dr. Lal PathLabs Kenya Private Limited (w.e.f. 6 August, 2019)

c) Subsidiaries held indirectly

S. No.	Name of the Entity
1	Centrapath Labs Private Limited (w.e.f. 7 August, 2019)
2	APRL PathLabs Private Limited (w.e.f 13 November, 2019)
3	Chanre Laboratory Private Limited (w.e.f 25 January, 2021)

E Di Lal PathLabs

Dr. Lal PathLabs Limited CIN: L74899DL1995PLC065388

Regd. Office : Block E, Sector-18, Rohini, New Delhi- 110085

Corporate Office: 12th Floor, Tower B, SAS Tower, Medicity, Sector-38, Gurgaon - 122 001, Haryana Phone: +91 124 3016500 | Fax: +91 124 4234468; Website: www.lalpathlabs.com; Email: cs@lalpathlabs.com

Statement of Consolidated Unaudited/Audited Financial Results for the quarter and year ended ended 31 March, 2021

		(Rs. in million except as stated)
	Particulars	3 months ended31 March, 2021	Preceding 3months ended31 December, 2020	Corresponding 3months ended31 March, 2020	Year ended31 March, 2021	Previous yearended31 March, 2020
		(see note iv)		(see note iv)	(see note iv)	(see note iv)
		(Unaudited)	(Unaudited)	(Unaudited)	(Audited)	(Audited)
$\mathbf{1}$	Income
	(a) Revenue from operations	4,310	4,524	3.017	15,813	13,304
	(b) Other income	135	135	120	513	550
	Total Income	4,445	4,659	3,137	16,326	13,854
$\overline{2}$	Expenses
	(a) Cost of materials consumed	1,033	1,098	720	3,973	2,987
	(b) Employee benefits expense	761	693	625	2,737	2,426
	(c) Finance costs	44	39	39	160	153
	(d) Depreciation and amortisation expense	203	195	200	772	728
	(e) Fees to collection centers/channel partners	585	604	393	2,043	1,730
	(f) Other expenses	711	741	706	2,697	2,725
	Total expenses	3,337	3,370	2,683	12,382	10,749
з	Profit before tax	1,108	1,289	454	3,944	3,105
4	Tax expense
	(a) Current tax	256	336	159(31)	1,021(42)	838
	(b) Deferred tax	$\mathbf{1}$257	(6)330	128	979	(9)829
S	Total tax expenseProfit for the period (A)	851	959	326	2,965	2,276
6	Other comprehensive income
	Items that will not be reclassified to profit or lossRemeasurement of the defined benefit obligationsIncome tax in relation to the items that will not bereclassified to profit or loss	(10)$\overline{2}$		(31)8	(9)$\overline{2}$	(17)5
	Items that may be reclassified to profit or loss-Exchange differences on translation of foreign operations			$\mathbf{1}$	(1)	$\ddagger$
	Total other comprehensive income/(loss) (B)	(8)		(22)	(8)	(11)
$\overline{\phantom{a}z}$	Total comprehensive income (A+B)	843	959	304	2,957	2,265
	Profit for the period attributable to:
	-Owners of the Company	83417	94514	3251	2,91649	2,25917
	Non-controlling Interests	851	959	326	2,965	2,276
	Other comprehensive income for the period
	attributable to:Owners of the Company	(8)		(22)	(8)	(11)
	Non-controlling interests		$\bullet$			(11)
		(8)	ŵ	(22)	(8)
	Total comprehensive income for the periodattributable to:
	Owners of the Company	626	945	303	2,908	2,248
	Non-controlling interests	17	14	$\mathbf 1$	49	17
		843	959	304	2,957	2,265
8	Paid-up equity share capital (Face Value of Rs. 10 pershare)	833	833	833	833	833
9	Other equity				11,617	9,495
10	Earnings per share (Rs.) (Face value of Rs. 10 per share)(not annualised)-Basic-Diluted	10.1010.07	11.4411.41	3.943.93	35.3335.25	27.4227.37

Notes:

Dr. Lal PathLabs Limited

• The above consolidated results were reviewed by the Audit Committee and approved by the Board of Directors in their respective meetings held on 21 May, 2021respectively. The consolidated financial results for the year end $\tilde{t}$ by the statutory auditors of the Company and they have expressed an unmodified opinion thereon.
• ij. The above consolidated results represent consolidated results of the Company and its subsidiaries (together referred to as the Group').
• These financial results of the Group have been prepared in accordance with the Indian Accounting Standards (Ind AS) as notified by Ministry of Corporate Affairspursuant to Section 133 of the Companies Act, 2013 read with iii. Disclosure Requirements) Regulations, 2015, as amended and other accounting principles generally accepted in India.
• iv. Figures for the quarter ended 31 March, 2021 and 31 March, 2020 are the balancing figures between the audited figures in respect of full financial year and thepublished year to date unaudited figures up to the third q raviaw
• The Board of Directors of the Parent Company had approved first interim dividend of INR 6 per equity share (face value of INR 10 each) at their meeting held on 6 November, 2020 which has been paid during the quarter ended on 31 December, 2020.

The Board of Directors of the Parent Company had approved second interim dividend of INR 6 per equity share (face value of INR 10 each) at their meeting held on 29 January, 2021 which has been paid during the quarter ended on 31 March, 2021.

The Board of Directors of the Parent Company have proposed final dividend of INR 8 per equity share (face value of INR 10 each) for the financial year 2020-21 at their meeting held on 21 May, 2021, this has been subject to approval of shareholders at the ensuing Annual General meeting.

• During the year ended 31 March, 2021, pursuant to the approval of the Board of Directors of PathLabs Unifiers Private Limited ("PUPL"), (a wholly owned subsidiary) PUPL has acquired an equity stake of 70% in Chanre Laboratory Private Limited engaged in pathology business for a purchase consideration of INR 175 million.
• During the year ended 31 March, 2021, pursuant to approval of the Board of Directors of PathLabs Unifiers Private Limited ("PUPL"), (a wholly owned subsidiary) vii. PUPL has purchased the business of Bindish Diagnostic Laboratory LLP ("BDL") engaged in the business of providing pathological diagnostic services in Jannagar Guiarat on a going concern basis for a purchase consideration of TNR 38.86 million.
• The Board of Directors of the Parent Company and one of the subsidiary company's 'APL Institute of Clinical Laboratory & Research Private Limited' ("APL"), in theirrespective meetings held on 3 February, 2020 had approved $vii$ As per the said scheme the undertaking of APL shall stand transferred to and vested in the Parent Company on a going concern basis without any further act, deed of matter. The scheme of amalgamation is subject to approval by the shareholders, National Company Law Tribunal and other statutory approvals,
• The Board of Directors of the Parent Company in their meeting held on 13 August, 2019, had approved the closure of Dr. Lai PathLabs International BV, Netherlands a $\mathbf{X}$ subsidiary, pursuant to which it was liquidated on October 20, 2020.
• The Board of Directors of the Group, which has been identified as being the chief operating decision maker (CODM), evaluates the Group's performance, allocates $\mathbf{x}$ . resources based on the analysis of the various performance indicators of the Group as a single unit. Therefore, there is no reportable segment for the Group, in accordance with the requirements of Indian Accounting Standar 2015.
• The Indian Parliament has approved the Code on Social Security, 2020 ('the Code') which, inter alia, deals with employee benefits during employment and post-employment. The Code has been published in the Gazette of India. are also yet to be issued. In view of this, the impact of the change, if any, will be assessed and recognised post notification of the relevant provisions.

xii. Refer to Annexure - A for Statement of Consolidated Assets and Liabilities.

For and on behalf of the Board of Directors of For and on believe Minister Ó $\mathbf{A}$

afaire Dr. Om Prakash Manchanda

Managing Director

Place: Gurugram Date: 21 May, 2021

	Dr. Lal PathLabs LimitedStatement of Consolidated Assets and Liabilities
			(Rs. in millions except as stated)
	Particulars	As at31 March, 2021	As at31 March, 2020
		(Audited)	(Audited)
1	AssetsNon-current assets
	(a) Property, plant and equipment	1,576	1,573
	(b) Capital work-in-progress	61	104
	(c) Right-of-use assets	1,483	1,345
	(d) Goodwill	854	772
	(e) Other intangible assets	560	441
	(f) Intangible assets under development(g) Financial assets	35	10
	$(i)$ Loans	1
	(ii) Other financial assets	68	145
	(h) Non-current tax assets (net)	229	186
	(i) Deferred tax assets (net)	280	228
	(j) Other non-current assets	15	13
	Total non-current assets	5,162	4,817
	2. Current assets
	(a) Inventories	426	570
	(b) Financial assets
	(i) Investments	593	1,643
	(ii) Trade receivables	667	514
	(iii) Cash and cash equivalents	2,443	1,967
	(iv) Bank balances other than (iii) above	6,817	3,724
	$(v)$ Loans	9	9
	(vi) Other financial assets
	(c) Other current assets	379	337
	Total current assets	11711,451	1638,927
	Total assets
	Equity and liabilities	16,613	13,744
	1. Equity
	(a) Equity share capital	833	833
	(b) Other equity	11,617	9,495
	Equity attributable to the owners of the Company		10,328
	Non-controlling interests	12,450
	Total equity	31012,760	21210,540
	2. Liabilities
	Non-current liabilities
	(a) Financial liabilities
	(i) Borrowings	1
	(ii) Other financial liabilities	1,102	930
	(b) Deferred tax liabilities (net)Total non-current liabilities	7
		1,110	930
	Current liabilities
	(a) Financial liabilities
	(i) Trade payables
	Total outstanding dues of micro enterprises and small	76	64
	enterprises;
	Total outstanding dues of creditors other than micro-enterprises and small enterprises	1,365	1,113
	Sub-total	1,441	1,177
	(ii) Other financial liabilities	843	792
	(b) Provisions	172	154
	(c) Current tax liabilities (net)	50	$\overline{\mathbf{z}}$
	(d) Other current liabilities	237	149
	Total current liabilities	2,743	2,274
	Total liabilities	3,853	3,204
	Total equity and liabilities	16,613	13,744

$\oint$

,

Consolidated Cash Flow Statement
		(Rs. in millions except as stated)
Particulars	Year ended31 March, 2021	Year ended31 March, 2020
	(Audited)	(Audited)
Cash flows from operating activities
Profit for the year	2,965	2,276
Adjustments for :
Tax expense	979	829
Interest Income	(439)	(449)
Dividend income on current investments		(7)
Gain on sale or fair valuation of investmentsSurrender value of keyman insurance policy	(47)	(83)
Sundry balances written back	(6)(5)	(6)
(Profit)/Loss on disposal/discard of property, plant and equipment	$\boldsymbol{z}$	(1)(1)
Expense recognised in respect of employee share based compensation	204	166
Finance cost	160	153
Depreciation and amortisation expense	772	728
Provision for impairment of trade receivables and advances.Bad debts and advances written off (net)	492	4812
Security deposits amortisation	6	3
Remeasurement of the defined benefit obligation	(9)	(17)
Exchange differences on translation of foreign operations	$_{(1)}$
Operating profit before working capital changes	4,632	3,652
Changes in working capital:
Adjustment for (increase)/decrease in operating assets:
(Increase) in inventories	144	(284)
(Increase) in trade receivables	(204)	(41)
Decrease in loans
(Increase)/decrease in other financial assets	(28)
(Increase)/decrease in other assets	45	(49)
Adjustment for increase/(decrease) in operating liabilities:Increase in trade payables	269	381
Increase in other financial liabilities	34	57
Increase in provisions	19	20
Increase in other liabilities	88	34
Cash generated from operations	4,999	3,774
Income taxes paidNet cash generated by operating activities (a)	(1, 017)3,982	(935)2,839
Cash flows from investing activities
Payments for purchase of property, plant and equipment	(356)	(471)
Proceeds from disposal of property, plant and equipmentPayments for purchase of other intangible assets
Interest received	(240)396	(325)408
Payments for business purchase on slump sale basis*	(31)	(264)
Net cash outflow for investment in subsidaries		(14)
Payments for purchase of investments in mutual funds	(3,824)	(5,590)
Proceeds from sale of investments in mutual funds	4,921	5,885
Bank deposits placed with the banksBank deposits with banks encashed	(8,756)5,766	(5, 435)5,334
Fixed deposits with the body corporates encashed		204
Net cash used in investing activities (b)	(2, 120)	(261)
Cash flows from financing activitiesProceeds from exercise of share options	2	2
Proceeds from issue of preference shares	$\ddagger$
Interest paid	(3)	$\langle 1 \rangle$
Repayment of lease liability	(235)	(200)
Interest paid on lease flability	(156)	(151)
Dividend paid on equity shares including dividend tax	(995)	(1, 555)
Net cash used in financing activities (c)	(1, 386)	(1, 905)
Net increase in cash and cash aquivalents $(a+b+c)$Cash and cash equivalents at the beginning of the year	4761,967	6731,294
Cash and cash equivalents at the end of the year	2,443	1,967
Components of cash and cash equivalentsCash on hand	15	8
Balance with scheduled banks:
- on current accounts	181	70
on cash credit accounts	66	43
- deposits with maturity of less than 3 months	2,181	1,846
Cash and cash equivalents in Cash Flow Statement*Value of assets and liabilities acquired on business purchase through slump sale	2,443	1,967

$\int_{\sum_{i=1}^{n}}$

Chartered Accountants

7th Floor, Building 10, Tower B DLF Cyber City Complex DLF City Phase - II Gurgaon – 122 002, Haryana India Tel: +91 124 679 2000 Fax: +91 124 679 2012

INDEPENDENT AUDITORS' REPORT ON AUDIT OF ANNUAL STANDALONE FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS

To The Board of Directors of Dr. Lal PathLabs Limited

Opinion and Conclusion

We have (a) audited the Standalone Financial Results for the year ended 31 March, 2021 and (b) reviewed the Standalone Financial Results for the quarter ended 31 March, 2021 (refer 'Other Matters' section below), which were subject to limited review by us, both included in the accompanying "Statement of Standalone Financial Results for the Quarter and Year Ended 31 March, 2021" of Dr Lal PathLabs Limited ("the Company"), ("the Statement"), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").

(a) Opinion on Annual Standalone Financial Results

In our opinion and to the best of our information and according to the explanations given to us, the Standalone Financial Results for the year ended 31 March, 2021:

• i. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
• ii. gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India of the net profit and total comprehensive income and other financial information of the Company for the year then ended.

(b) Conclusion on Unaudited Standalone Financial Results for the quarter ended 31 March, 2021

With respect to the Standalone Financial Results for the quarter ended 31 March, 2021, based on our review conducted as stated in paragraph (b) of Auditor's Responsibilities section below, nothing has come to our attention that causes us to believe that the Standalone Financial Results for the quarter ended 31 March, 2021, prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Regd. Office : Indiabulls Finance Centre, Tower 3, 27th – 32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400013, Maharashtra, India (LLP Identification No. AAB-8737)

Basis for Opinion on the Audited Standalone Financial Results for the year ended 31 March, 2021

We conducted our audit in accordance with the Standards on Auditing ("SAs") specified under Section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those Standards are further described in paragraph (a) of Auditor's Responsibilities section below. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("the ICAI") together with the ethical requirements that are relevant to our audit of the Standalone Financial Results for the year ended 31 March, 2021 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Management's Responsibilities for the Statement

This Statement which includes the Standalone Financial Results is the responsibility of the Company's Board of Directors and has been approved by them for the issuance. The Standalone Financial Results for the year ended 31 March, 2021 has been compiled from the related audited standalone financial statements. This responsibility includes the preparation and presentation of the Standalone Financial Results for the quarter and year ended 31 March, 2021 that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; 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 Standalone Financial Results that give a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Results, the Board of Directors are responsible for assessing the Company's ability, to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the financial reporting process of the Company.

Auditor's Responsibilities

(a) Audit of the Standalone Financial Results for the year ended 31 March, 2021

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results for the year ended 31 March, 2021 as a whole is 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 this Standalone Financial Results.

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 Annual Standalone Financial Results, 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, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
• control. Evaluate the appropriateness of accounting policies used and the reasonableness
• of accounting estimates made by the Board of Directors. Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of
• the Listing Regulations. Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement 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 Company to cease to continue as a going
• concern. Evaluate the overall presentation, structure and content of the Annual Standalone Financial Results, including the disclosures, and whether the Annual Standalone Financial Results represent the underlying transactions and events in a manner
• that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the Annual Standalone Financial Results of the Company to express an opinion on the Annual Standalone Financial Results.

Materiality is the magnitude of misstatements in the Annual Standalone Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Annual Standalone Financial Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Annual Standalone Financial Results.

We communicate with those charged with governance 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.

(b) Review of the Standalone Financial Results for the quarter ended 31 March, 2021

We conducted our review of the Standalone Financial Results for the quarter ended 31 March, 2021 in accordance with the Standard on Review Engagements ("SRE") 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the ICAI. A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with SAs specified under section 143(10) of the Act and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Other Matters

The Statement includes the results for the Quarter ended 31 March, 2021 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were subject to limited review by us. Our report on the Statement is not modified in respect of this matter.

For Deloitte Haskins & Sells LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Jitendra Agarwal Partner (Membership No. 87104) (UDIN: 21087104AAAADU3070)

Place: New Delhi Date: 21 May, 2021

$B$ $2r$ Lat Path Labs

Dr. Lal PathLabs Limited CIN: L74899DL1995PLC065388

Regd. Office : Block E, Sector-18, Rohini, New Delhi- 110085

Corporate Office: 12th Floor, Tower B, SAS Tower, Medicity, Sector-38, Gurgaon - 122 001, Haryana

Phone: +91 124 3016500 | Fax: +91 124 4234468; Website: www.lalpathlabs.com; Email: cs@lalpathlabs.com

Statement of Standalone Unaudited/Audited Financial Results for the quarter and year ended 31 March, 2021

	Particulars	(Rs. In million except as stated)
		3 months ended31 March, 2021	Preceding 3months ended31 December, 2020	Corresponding 3months ended31 March, 2020	Year ended31 March, 2021	Previous yearended31 March, 2020
		(See note iii)		(See note iii)	(See note iii)
$\mathbbm{1}$		(Unaudited)	(Unaudited)	(Unaudited)	(Audited)	(See note iii)(Audited)
	Income
	(a) Revenue from operations	4,041	4,271	2,875	14,905	12,736
	(b) Other income	131	146	140	513
	Total income	4,172	4,417	3,015		576
$\mathbf{2}$	Expenses				15,418	13,312
	(a) Cost of materials consumed
	(b) Employee benefits expense	965	1,028	686	3,739	2,869
		712	653	589	2,574	2,321
	(c) Finance costs	39	37	37	148	147
	(d) Depreciation and amortisation expense	179	178	185	698	680
	(e) Fees to collection centers/channel partners	572	594	385
	(f) Other expenses	658	686		2,007	1,696
	Total expenses			657	2,511	2,572
$\mathcal{F}$	Profit before tax	3,125	3,176	2,539	11,677	10,285
$\boldsymbol{4}$	Tax expense	1,047	1,241	476	3,741	3,027
	(a) Current tax	244	327	150	985	802
	(b) Deferred tax	16	(13)	(27)	(45)
	Total tax expense	260	314	123	940	(7)
$\mathcal{L}$	Profit for the period (A)	787	927			795
6	Other comprehensive income			353	2,801	2,232
	Items that will not be reclassified to profit or loss-Remeasurement of the defined benefit obligations	(11)		(29)	(9)	(15)
	Income tax in relation to the items that will not bereclassified to profit or loss	3		$\overline{ }$	$\overline{2}$
	Total other comprehensive income/(loss) (B)	(8)		(22)
	Total comprehensive income (A+B)	779	927	331	(7)	(11)
8	Paid-up equity share capital (Face Value of Rs. 10 per share)	833			2,794	2,221
$\mathcal{Q}$			833	833	833	833
	Other equity				11,338	9,329
10	Earnings per share (Rs.) (Face value of Rs. 10 per share) (notannualised)
	Basic	9.52	11.23	4.28	33.93	27.09
	Diluted	9.50	11.20	4.27	33.85	27.04

Dr. Lal PathLabs Limited

• The above results were reviewed by the Audit Committee and approved by the Board of Directors in their respective meetings held on 21 May, 2021. The $\ddot{i}$ financial results for the year ended 31 March, 2021 have been audited and for the quarter ended 31 March, 2021 have been reviewed by the statutory auditors of the Company and they have expressed an unmodified opinion thereon.
• These financial results of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) as notified by Ministry of Corporate $\overline{B}$ Affairs pursuant to Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and in terms of regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and other accounting principles generally accepted in India.
• Figures for the quarter ended 31 March, 2021 and 31 March, 2020 are the balancing figures between the audited figures in respect of full financial year and the published year to date unaudited figures up to the third quarter ended 31 December, 2020 and 31 December, 2019 respectively, which was subjected to limited review.
• iv. During the year ended 31 March, 2021 the Company has made a further investment of INR 225.00 million in its wholly owned subsidiary, PathLabs Unifiers Private Limited, through subscription of additional equity shares.

Subsquent to the year ended 31 March, 2021 the Company has made a further investment of INR 45.00 million in its wholly owned subsidiary, PathLabs Unifiers Private Limited, through subscription of additional equity shares.

• During the year ended 31 March, 2021 the Company has made a further investment of INR 40 million (KES 59 million) in its wholly owned subsidiary, $48.$ Dr. Lal PathLabs Kenya Private Limited, through subscription of additional equity shares.
• The Board of Directors of the Company had approved first interim dividend of INR 6 per equity share (face value of INR 10 each) at their meeting held on 6 $\mathbf{v}$ November, 2020 which has been paid during the quarter ended on 31 December, 2020.

The Board of Directors of the Company had approved second interim dividend of INR 6 per equity share (face value of INR 10 each) at their meeting held on 29 January, 2021 which has been paid during the quarter ended on 31 March, 2021.

The Board of Directors of the Company has proposed a final dividend of INR 8 per equity share (face value of Rs. 10 each) for the financial year ended 2020-2021. The total dividend for the year including the final dividend (Subject to approval of shareholders at the ensuing Annual General meeting) is Rs. 20 per equity share having face value of Rs. 10 each.

• vii. The Board of Directors in their meeting held on 3 February, 2020 had approved the "Scheme of Amalgamation" of APL Institute of Clinical Laboratory 8 Research Private Limited with the Company w.e.f. 1 April, 2020 (the appointed date). As per the said scheme the undertaking of APL shall stand transferred to and vested in the Company on a going concern basis without any further act, deed of matter. The scheme of amalgamation is subject to approval by the shareholders, National Company Law Tribunal and other statutory approvals.
• viii. The Board of Directors of the Company, which has been identified as being the chief operating decision maker (CODM), evaluates the Company's performance, allocates resources based on the analysis of the various performance indicators of the Company as a single unit. Therefore there is no reportable segment for the Company, in accordance with the requirements of Indian Accounting Standard 108 - 'Operating Segments', notified under the Companies (Indian Accounting Standard) Rules, 2015,
• ix. The Indian Parliament has approved the Code on Social Security, 2020 ('the Code') which, inter alia, deals with employee benefits during employment and postemployment. The Code has been published in the Gazette of India. The effective date of the Code is yet to be notified. In view of this, the Company is in the process of assessing the impact of the relevant provisions.
• x. Refer Annexure A for Statement of standalone Assets and Liabilities.

For and on behalf of the Board of Directors of Dr. Lal PathLabs Limited

axavetyon

Place: Gurugram Date: 21 May, 2021

Notes:

$\overline{20}$

Dr. Om Prakash Manchanda Managing Director

Annexure A

	Statement of Standalone Assets and Liabilities	(Rs. in millions except as stated)
	Particulars	As at31 March, 2021	As at31 March, 2020
Assets		(Audited)	(Audited)
1.	Non-current assets
	(a) Property, plant and equipment
	(b) Capital work-in-progress	1,433	1,467
	(c) Right-of-use assets	55	103
	(d) Goodwill	1,399	1,303
	(e) Other intangible assets	$\mathbf{H}$	11
	(f) Intangible assets under development	15835	184
	(g) Financial assets		10
	(i) Investments	1,204	939
	(ii) Loans	1
	(iii) Other financial assets	54	131
	(h) Non-current tax assets (net)	205	172
	(i) Deferred tax assets (net)	269	222
	(j) Other non-current assets	24	13
	Total non-current assets	4,838	4,555
	2. Current assets
	(a) Inventories
	(b) Financial assets	389	550
	(i) Investments
	(ii) Trade receivables	502	1,589
	(iii) Cash and cash equivalents	635	503
	(iv) Bank balances other than (iii) above	2,317	1,892
	$(v)$ Loans	6,5708	3,600
	(vi) Other financial assets	365	9326
	(c) Other current assets	107	155
	Total current assets	10,893	8,624
	Total assets	15,731	13,179
	Equity and Liabilities
	1. Equity
	(a) Equity share capital	833	833
	(b) Other equity	11,338	9,329
	Total equity	12,171	10,162
	2. Liabilities
	Non-current liabilities
	(a) Financial liabilities
	(i) Other financial liabilities	1,037	904
	Total non-current liabilities	1,037	904
	Current liabilities
	(a) Financial liabilities
	(i) Trade payables
	Total outstanding dues of micro enterprises and	71
	small enterprises;		62
	Total outstanding dues of creditors other than microenterprises and small enterprises;	1,285	1,065
	Subtotal	1,356	1,127
	(ii) Other financial liabilities	739	699
	(b) Provisions	159	344
	(c) Current tax liabilities (net)	49	$\overline{2}$
	(d) Other current liabilities	220	141
	Total current liabilities	2,523	2,113
	Total liabilities	3,560	3,017
	Total equity and liabilities	15.731	13.179

Annovises D

Dr. Lal PathLabs LimitedStandalone Cash Flow Statement(Rs. in millions except as stated)
Particulars	Year ended31 March, 2021	Year ended31 March, 2020
	(Audited)	(Audited)
Cash flows from operating activities
Profit for the yearAdjustments for:	2,801	2,232
Tax expense
Interest income	940	796
Dividend income on current investments	(427)	(438)
Dividend income from a subsidiary company	(16)	(7)
Gain on sale or fair valuation of investments	(44)	(41)(79)
Surrender value of keyman insurance policy	(6)	(5)
Sundry balances written back	(5)	(1)
(Profit)/Loss on disposal / discard of property, plant and equipment	$\mathbf{z}$	(2)
Expense recognised in respect of employee share based compensationFinance cost	204	166
Depreclation and amortisation expense	148	147
Provision for impairment of trade receivables and advances	69839	680
Bad debts and advances written off (net)	$\mathbb{1}$	42
Security deposits amortisation	6	₿3
Remeasurement of the defined benefit obligation	(10)	(15)
Operating profit before working capital and other changes	4,331	3,486
Changes in working capital:Adjustment for (increase)/decrease in operating assets:
(Increase)/decrease in inventories	161	(272)
(Increase) in trade receivables	(172)	(22)
Decrease in loans(Increase)/decrease in other financial assets
(Increase)/decrease in other assets	(23)	8
	48	(42)
Adjustment for Increase/(decrease) in operating liabilities:Increase in trade payables
Increase in other financial liabilities	234	357
Increase in provisions	3215	54
Increase in other liabilities	79	1329
Cash generated from operations	4,705	3,611
Income taxes paid	(971)	(892)
Net cash generated from operating activities (a)	3,734	2,719
Cash flows from investing activities
Payments for purchase of property, plant and equipment	(280)	(438)
Proceeds from disposal of property, plant and equipment	$\mathbf{1}$	9
Payments for purchase of other intangible assets	(70)	(56)
Dividend received from a subsidiary company	16	41
Interest receivedNet cash outflow for investment in subsidaries	385	398
Payments for purchase of investments in mutual funds	(265)	(615)
Proceeds from sale of investments in mutual funds	(3,553)	(5, 384)
Bank deposits placed with the banks	4,684(8, 501)	5,698
Bank deposits with banks encashed	5,631	(5,259)5,207
Fixed deposits encashed with body corporates		204
Net cash used in investing activities (b)	(1,952)	(195)
Cash flows from financing activities
Proceeds from exercise of share options	$\boldsymbol{z}$
Repayment of lease liability	(220)	$\mathbf{z}$(193)
Interest paid on lease liability	(148)	(146)
Dividend paid on equity shares including dividend tax	(991)	(1, 534)
Net cash used in financing activities (c)	(1, 357)	(1, 871)
Net increase in cash and cash equivalents (a+b+c)	425	653
Cash and cash equivalents at the beginning of the year	1,892	1,239
Cash and cash equivalents at the end of the year	2,317	1,892
Components of cash and cash equivalents
Cash on hand	13	$\overline{\phantom{a}}$
Balance with scheduled banks:
- on current accounts	101	31
- on cash credit accounts	66	43
- deposits with maturity of less than 3 months	2,137	1,811
Cash and cash equivalents in Cash Flow Statement	2.317	1.892