Laurus Labs Limited — Annual Report 2020

Apr 30, 2020

April 30, 2020

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To	To
The Corporate Relations DepartmentBSE LimitedPhiroz Jeejeebhoy Towers, 25111 Floor,Dalal StreetMumbai-400001	The Listing DepartmentNational Stock Exchange oflndia LimitedExchange Plaza,Bandra Kurla Complex, Bandra (East)Mumbai-400 051
Code: 540222	Code: LAURUSLABS

Dear Sirs,

Sub: Outcome of the Board Meeting- April 30, 2020

(1) Approval of audited Financial Results fot· the Year ended March 31, 2020 and Limited Reviewed Financial Results for the Quarter ended March 31, 2020:

Pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors approved the Audited Standalone and Consolidated Financial Results of the Company for the Year ended March 31, 2020 and Limited Reviewed Financial Results of the Company for the Quarter ended March 31, 2020, which are enclosed herewith along with the Audit Rep01is (including Limited Review Reports) issued by Deloitte Haskins & Sells LLP, the Statutory Auditors of the Company.

The financial results are also available on the website of the Company at www.lauruslabs.com and also on the websites of BSE Ltd. and National Stock Exchange of India Ltd. viz. w\vw.bseindia.com and www.nseinda.com respectively.

(2) Recommendation of final Dividend for FY 2019-20:

The Board of Directors have recommended a final dividend ofRs.l.OO (10%) per equity share of face value of Rs.1 0/- each, for the financial year 2019-20.

Due to the ongoing Covid-19 pandemic and unpredictable situation, the date of Annual General Meeting has not been finalised by the Board. Therefore, the Book closure dates and the intimation regarding payment of Dividend to shareholders (if declared at the ensuing Annual General Meeting) will be intimated later.

(3) Sub-division (Split) of equity shares of Face value ofRs. 10/- each:

The Board of Directors have recommended for the sub-division of equity shares of the Company from existing face value of Rs. 10/- each to face value of Rs. 2/- each (i.e. split of 1 equity share of Rs.1 0/- into 5 equity shares of Rs.2/- each), to the approval of the shareholders.~=,..__ in the ensuing Annual General Meeting of the Company and subject to other approvals s ..P..Bs ( may be required. · .;::, ~ .

Registered Office: Plot No:21 , Jawaharlal Nehru Pharma City. Parawada, Visakhapatnam- 531021 , Andhra Pradesh. India. CIN : L2t.23 T +91 891 3061222 F +91 891 3061 270 E infa@lauruslabs.com W lauruslabs.com

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS lngre 1ents Active Pharmaceutical Ingredients & lntermedates Finished Dosage Forms Contract Devek>pmenl & Manufacturilg SeMces Specialty klgedents tcx- Nutraceutica! & Aied krlJstiy

The details required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015 are given in the Annexure-1.

(4) Re-appointment of Dr. Venugopala Rao Malempati, Independent Director as the Chairman of the Board for a further period of two years

The Directors have re-elected Dr. Venugopala Rao Malempati, Independent Director as Non-Executive Chauman of the Board for a fmiher period of two years with effect from May 18, 2020.

Dr. MVG Rao was elected as the Chaitman of the Board from May 18, 2017 and May 18, 2018 for a period of one year and two years respectively.

(5) Approval of proposal for merger of two foreign subsidiaries of the Company

The Board of Directors have approved the proposal of merger of rnls. Lamus Synthesis Inc. USA (Subsidiary of the Company) with M/s. Laums Generics Inc. USA (Step-down Subsidiary of the Company), which is subject to the approvals from the respective statutory and regulatory authorities.

The details required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015 are given in the Annexure-2.

The Board Meeting commenced at 2.00 PM and concluded at 3.00 PM.

This is for your inf01mation and records.

Thanking you,

Yours sincerely, For Laurus Labs Limited

G. ~ Venkateswar Re dy

Company Secretary

Encl: As above

Annexure-!

Disclosure under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

a) split/consolidation ratio	1 (One) equity share offace value ofRs. 10/-will be split/sub-divided into 5 (Five) equity
	shares of face value of Rs. 2/-each.
b) rationale behind the split/consolidation;	To improve the liquidity of the Company'sequity shares and to make equity shares moreaffordable for the small retail investors
c) pre and post share capital
authorized, paid-up and subscribed;
-Pre-Split Share Capital
Authorized Capital	111 ,000,000 Equity Shares of face value of Rs.
	each amounting toRs. 1,110,000,000/-10/-
Paid-Up and Subscribed Capital	106,914,499 Equity Shares offace value ofRs.
	each amounting toRs. 1,069,144,990/-10/-
-Post-Split Share Capital
Authorized Capital	555,000,000 Equity Shares of face value ofRs.
	each amounting toRs. 1,110,000,000/-2/-
Paid-Up and Subscribed Capital	534,572,495 Equity Shares of face value of Rs.
	each amounting toRs. 1,069,144,990/-2/-
d) expected time of completion;	8 Months (Approx.)
e) class of shares which are consolidated or	Equity Shares
subdivided;
f) number of shares of each class pre and	As mentioned in point no. c
post split or consolidation;
g) number of shareholders who did not get	NIL
any shares in consolidation and their pre
consolidation shareholding.

Annexure-2

Disclosure under Regulation 30 of Securities and Exchange Board oflndia (Listing Obligations and Disclosure Requirements) Regulations, 2015

	Transferor Entity:	Transferee Entity:
a) name of the entity(ies) formingpart of the amalgamation/merger,detailsbrief suchas,mSIZe,	M/s. Laurus Synthesis Inc.USA	M/s. Laurus Generics Inc.USA
tumover etc	As on March 31,2020:Net wo1ih-Rs.(12.45) CrTumover-Rs. 12.87 Cr	As on March 31, 2020:Net worth-Rs.(11.70) CrTumover-Rs. 14.26 Cr
b) Whether the transaction wouldfallwithinrelatedpmiy	Yes. Both the entities are related pmiies to each other.
transactions? If yes, whether thesame is done at "arms length";	Yes. The transaction is done at arms-length basis
ofofc)areabusinesstheentity(ies );	Contract ResearchOperations (CRO) andmarketing services	Pharmaceutical marketingservices
d)rationaleforamalgamation/merger;	Ensure economy of operations and scale by eliminationof administrative functions and multiple record-keeping,thus reducing expenditure considerably.
e) in case of cash consideration -amountotherwiseshareorexchange ratio;	Will be intimated as and when decided
Brief detailsof changef)mshareholding pattem (if any) oflisted entity.	Not Applicable

Laurus Labs Limited Corporate Office

2"" Floor, Serene Chambers, Road No. 7 Banjara Hills. Hyderabad- 50003L,, Telangana, India T +91 L,O 3980L,333 I 23L,2 0500 I 501

LAURUS Labs F +91 L,O 3980 ~320 Knowledge . Innovation . Excellence

LAURUS LABS LIMITED

(CIN: L24239AP2005PLC047518) Regd.Office: Plot No.21, Jawaharlai Nehm Pharma City, Para wad a, Visakhapatnam531 021, Andhra Pradesh, India. Corp. Office: 2nd Floor, Serene Chambers, Road No.7, Banjara Hills, Hyderabad 500034, Telangana, India. Tel: +91 40 3980 4333; Fax: +91 040 3980 4320; E-mail: secretarial@laumslabs.com; Website: www.lauruslabs.com STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31,2020 AND UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2020

						fi11Mi/lio11
Sl.			Quarter ended		Year ended
No.	Particulars	31-Mar-20	31-Dec-19	31-Mar-19	31-Mar-20	31-Mar-19
		(Refer note 10)	(Unaudited)	(Refer note 10)
1	Income
	(a) Revenue from operations	8,391.42	7,295.89	6,351.61	28,317.23	22,919.16
	(b) O ther income	16.81	19.24	16.22	59.24	161.52
	Total income	8,408.23	7,315.13	6,367.83	28,376.47	23,080.68
2	Expenses
	(a) Cost of materials consumed	4,183.47	3,714.59	3,333.06	16,136.85	12,452.47
	(b) Purchase of traded goods	12.37	19.54	86.80	158.76	223.80
	(c) Changes in inventories of finished goods, work-in-progressand stock-in-trade	(12.79)	(128.58)	(0.75)	(2,161.53)	(319.87)
	(d) Employee benefits expense	881.34	884.42	740.17	3,448.66	2,892.04
	(e) Other expenses	1,409.33	1,324.21	1,072.45	5,089.00	4,110.90
	(f) Depreciation and amortisation expense	460.54	475.50	434.73	1,872.71	1,641.92
	(g) Finance costs	206.58	208.33	175.68	895.91	881 .90
	Total expenses	7,140.84	6,498.01	5,842.14	25,440.36	21,883.16
3	Profit before tax (1-2)	1,267.39	817.12	525.69	2,936.11	1,197.52
4	Tax expense
	(a) Current tax	229.06	153.19	119.00	535.78	248.32
	(b) Deferred tax	(63.17)	(70.82)	(25.10)	(152.40)	11.56
	Total Tax expense	165.89	82.37	93.90	383.38	259.88
5	Net Profit after tax (3-4)	1,101.50	734.75	431.79	2,552.73	937.64
6	Other comprehensive income
	Items that will not be reclassified subsequently to profit or loss:
	(i) Remeasurement gains/ (losses) on defined benefit plans	(10.42)	(11.25)	5.56	(15.03)	(36.19)
	(ii) Income tax relating to items that will not be reclassified to profit
	or loss in subsequent periods	3.57	3.93	(1.92)	5.18	12.67
	Items that will be reclassified subsequently to profit or loss:
	(i) Exchange differences on translating the financial statements of
	foreign operations	(13.48)	1.33	(0.37)	(16.96)	(6.23)
	(ii) Effective portion of gain/ (loss) on designated portion of hedging
	instruments in a cash flow hedge	(153.18)	10.75	9.25	(133.69)	(10.74)
	(iii) Income tax relating to items tl1at will be reclassified to profit or loss
	in subsequent periods	53.53	(3.76)	(3.23)	46.72	3.75
	Total other comprehensive income f(loss), net of tax	(11 9.98)	1.00	9.29	(113.78)	(36.74)
7	Total comprehensive income (5+6)	981.52	735.75	441.08	2,438.95	900.90
8	Paid-up equity share capital (fac·e value ~ 10/- each)	1,069.14	1,069.14	1,064.37	1,069.14	1,064.37
9	Other equity				16,628.64	14,519.70
10	Earnings per equity share (face value if 10/- each)
	-Basic( ~)	10.32	6.88	4.07	23.93	8.83
	-Dilu ed(~)	10.32	6.88	4.05	23.93	8.80
		(NDIIIIIIIHII /iscd)	(Notllmwuli5<',/)	(NVIIl/IIJtWiiS<.l)

See accompan ymg notes to the financial results

Registered Office: Plot No:2 1, Jawaharlal Nehru Pharma City, Parawada, Visakhapatnam- 531021 . Andhra Pradesh, India. CIN : L2L,239AP2005PLCOL,7518 T +91 891 3061222 F +91 89 1 3061270 E info@lauruslabs.com W lauruslabs.com

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS Ingredients Active Pharmaceutical Ingredients & Intermediates Finished Dosage FOffils Contract Development & ManufactlKing Services Specialty lngredents fOf Nutracevtical & Allied Industry

Laurus Labs Limited

Corporate Office 2"" Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad- 50003t.. Telangana. India T +91 t.O 3980t.333 I 23t.2 0500 I 501 F +91 t.O 3980 t.320

Consolidated Balance Sheet

			fi11Millio11
Sl.No.	Particulars	March 31, 2020	March 31, 2019
I	ASSETS
	Non-current asse ts
(a)	Property, plant and equipment	16,639.56	16,071.99
(b)	Right-of-use assets	428.87	-
(c)	Capital work-in- progress	671.81	1,096.32
(d)	Goodwill	97.39	97.39
(e)	Other intangible assets	97.53	121.31
(f)	F ina ncia I assets
	Inveshnents(i)	34.05	34.05
	(ii) Other financial assets	337.57	293.80
(g)	Deferred tax asse ts (net)	739.30	533.83
(h)	Income tax assets (net)	9.55	16.00
(i)	Other non-current assets	326.98	417.58
	Total non-current assets (1)	19,382.61	18,682.27
	Current assets
(a)	Inventories	9,052.16	6,819.37
(b)	Financial assets
	(i)Trade receivables	7,914.20	7,099.40
	(ii) Cash and cash equivalents	16.88	29.68
	(iii) Other balances with banks	0.52	0.53
	(iv) Loans	4.90	4.17
	(v)Other financi al assets	392.63	209.75
(c)	Other current asse ts	739.26	466.68
	Total current assets (2)	18,120.55	14,629.58
	Total- assets (1 +2)	37,503.16	33,311.85
	II EQUITY AND LIABILITIES
	Equity
(a)	Equity share capital	1,069.14	1,064.37
(b)	Other equity	16,628.64	14,519.70
	Total equity (1)	17,697.78	15,584.07
	Non-current liabilities
(a)	Financial liabilities
	(i) Borrowings	1,650.22	2,587.13
	(ii) Lease liabilities	205.59	-
(b)	Provisions	458.49	300.45
(c)	Other non-current liabilities	567.42	601.16
	Total non-current liabilities (2)	2,881.72	3,488.74
	Current liabilities
(a)	Financial liabilities			,
	Borrowings(i)	7,905.13	6,842.05
	(ii) Trade payables
	-total outstanding dues of micro enterprises andsmall enterprises	100.02	70.37
	-total outstanding dues of creditors other than micro	6,056.06	4,812.75	~
	enterprises and small enterprises(iii) Lease liabilities			.£
	(iv) Current maturities and other financial liabilities	19.94	-
(b)	Other current liabilities	1,675.31	1,638.74	~(;x 1yder
(c)	Provisions	919.48109.40	806.2164.66
(d)	Income tax liabilities (net)	138.32	4.26	?s
	Total current liabilities (3)	16,923.66	14,239.04	I
	Total- equity and liabilities (1 +2+3)	37,503.16	33,311.85

Registered Office: Plot No:21. Jawahorlal Nehru Pharma City, Parawada, Visakhapatnam - 531021, Andhra Pradesh. India. CIN: L2t.239AP2005PLC0t. 7518 T +91 891 3061222 F +91 891 3061270 E info@lauruslabs.com W lauruslabs.com

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS Ingredients Active PharmaceuticaJ ngrea~ents & Intermediates Finished Dosage Fonns Contract Development & Manufacturing Services Speciatty lngedents fOf' f\lrtraceutical & Arled h:iJstry

Laurus Labs Limited Corporate Office

2"" Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad- 500034, Telangana. India T +91 40 39804333 I 2342 0500 I 501 F +91 40 3980 4320

LAURUS Labs Knowledge . Innovation . Excellence

Consolidated Statement of Cash Flows

Consolidated Statement of Cash Flows		!( iuMilliou
Particulars	For the year endedMarch 31, 2020	For the year endedMarch 31, 2019
Profit before tax	2,936.11	1,197.52
Cash flows from operating activities
Adjustments for:
Depreciation and amortisation
Loss on sale of fixed assets (net)	1,872.718.29	1,641.927.94
Interest income	(9.71)	(8.88)
Interest expenses	843.82	857.61
Share based payment expense	36.65	24.20
Net loss on foreign exchange fluctuations (unrealised)	147.39	45.90
Allowance for bad and doubtful advances and receivables	35.19	2.95
Provisions no longer required w1·itten back	(2.26	(94.70)
Operating profit before working capital changes	5,868.19	3,674.46
Movement In working capital:
Increase in inventories	(2,232.32)	(969.03)
Increase in trade receivables	(653.43)	(1,492.86)
(Increase)/ decrease in financial and non-financial assets	(488.12)	137.63
Increase in trade payables	1,122.60	1,861.70
Increase in financial, non-financial liabilities and provisions	253.64	17.98
Cash generated from operations	3,870.56	3,229.88
Income tax paid	(396.43)	(253.25
Net cash flows from operating activities (A)	3,474.13	2,976.63
Cash flows used in investing activities
Purchase of property, plant and equipment, including intangible assets, capital	(2,221.86)	(2,542.62)
work in progress i!nd capital advances
Proceeds from sale of property, plant and equipment	1.57	5.03
Movement in other bank balances	(0.66)	(0.04)
Interest received	9.71	8.88
Net cash flows used in investing activities (B)	(2,211.24)	(2,528.75)
Net cash flows (used in)/ from financing aclivities
Proceeds from exercise of employee stock options	26.10	24.31
Repayment of long- term borrowings	(990.50)	(818.54)
Proceeds from long - term borrowings	-	2,082.54
Proceeds from short - term borrowings (net)	957.90	(699.83)
Payment of lease liabilities	(25.56)	-
Dividend paid	(320.03)	(159.04)
Tax on dividend	(65.78)	(32.69)
Interest paidNet cash flows used in financing activities (C)	(858.68\	(844.46
	(1,276.55)	(447.71)
Net decrease in cash and cash equivalents (A+B+C)	(13.66)	0.17
Effect of exchange differences on cash and cash equivalents	0.86	(0.53)
Cash and cash equivalents at the beginning of the year	29.68	30.04
Cash and cash equivalents at the year end	16.88	29.68

Registered Office: Plot No:21, Jawaharlal Nehru Pharma City, Parawada, Visakhapatnam- 531021, Andhra Pradesh. India. CIN: L24239AP2005PLC04 7518 T +91 891 3061222 F +91 891 3061270 E info@lauruslabs.com W lauruslabs.com

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS Ingredients Active Pharmaceutical ingredients & Intermediates Finished Dosage Forms Contract Development & Manufacturhg Services Specialty lngedents for r-.krtraceutical & Allied Industry

2"" Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad- 50003t., Telangana. India T +91 t.O 3980t. 333 / 23t.2 0500 I 501 F +91 t.O 3980 t. 320

Notes:

• 1 The above consolidated financial results of Laurus Labs Limited ("the Company") as reviewed by the Audit Committee has been approved by the Board of Directors at its meeting held on April 30, 2020. The results for the year ended March 31, 2020 has been audited and for the quarter ended !\•larch 31, 2020 has been reviewed by our statutory auditors. The statutory auditors of the Company have expressed an unmodified opinion thereon.
• 2 These consolidated financial results of the Company have been prepared in accordance with the Indian Accmmting Standards prescribed w1der Section 133 of the Companies Act, 2013 ("the Act") read wiU1 relevant rules issued therennder ('lND AS') and oU1er accow1ting principles generally accepted in India and guidelines issued by U1e Securities and Exchange Board of India ("SEBI").
• 3 The consolidated financial results include U1e results of the following subsidiaries·

Name of the Company	Country ofIncorporation	Nature of relationship	% Holding
Laurus Synthesis Inc	USA	Subsidiary	100%
Sriam Labs Private Limited	India	Subsidiary	100%
Laurus Holdings Limited	UK	Subsidiary	100%
Laurus Generics Inc	USA	Step-down subsidiary	100%
Laurus Generics GmbH	Germany	Step-down subsidiary	100%

4 During the year ended March 31, 2020, the Company allotted 477,750 equity shares of '{ 10/ - each, consequent to U1e exercise of the stock options by the employees of the Company tmder the Employee Stock Option Plan.

5 The Com pan)' and its subsidiaries are engaged in the man ufacture and sale of "Pharmaceuticals" which constitutes a single reportable business segment as per lnd AS 108 - 'Operating Segments'.

• 6 Effective April1, 2019, the Group adopted lnd AS 116 "Leases", applied to all lease contracts existing on Apri11, 2019 using the modified retrospective method and has taken the cumulative adjustment lo retained earnings, on the dale of initial application. According!)', compa ratives for the )'ear ended March 31, 2019 have not been retrospective!)' adjusted. During the quarter and year ended, the Group has recognised interest expense on lease amow1ting lo '{ 4.48 om, '{ 18.64 om and depreciation on right-of-use assets amounting to '{ 4.20 mn, '{ 19.68 mn respective!)'.
• 7 The Board of Directors, at their meeting held on August 02, 2019, approved the proposal to acquire lhe 100% shares of Phekolong Pharmaceuticals Pt)' Ltd, a wholl)' owned subsidiary of Phannacare Limited 1/ a Aspen Pharmacare, South Africa . The transaction is expected to close subject to completion of conditions precedent.

8 (a) The Board of Directors, at their meeting held on March 12, 2020 approved for the pa)'menl of interim dividend of'{ 1.50/ - per share. The Board of Directors,

at their meeting held on April 30, 2020, recommended a final dividend of'{ 1.00/- per share, subject to lhe approval of shareholders.

(b) The Board of Directors, at their meeting held on April 30, 2020, recommended for the sul>-d ivision of equil)' shares of the Company from existing face value of Rs. 10/- each lo face value of Rs. 2/- eacl1 (i.e. split of 1 equit)' share of Rs.10/ - eacl1 into 5 equitj• shares of Rs.2/- each), subject to the approval of the shareholders in the ensuing Ammal General Meeting of the Company and other regulator' approvals.

• 9 COVID-1 9 is the infectious disease caused b)' the most recently discovered coronavirus, SARS-CoV-2. In March 2020, the WHO declared COVID-19 a pandemic. The Group has adopted measures to curb tile spread of infection in order to protect tile health of our emplo)'ees and ensure business continuity with minimal disruption. In assessing the recoverabilil)' of receivables and other financials assets, the Group has considered internal and ex lemal information uplo the dale of approval of these Consolidated financial results. The impact of the global health pandemic ma)' be diffe rent from that of estimated as at the date of approval of these consolidated financial results
• and the Group w ill continue to closely monitor any material changes to future economic conditions. 10 The figures for the current quarter and quarter ended March 31, 2019 are U1 e balancing figures between the audited figures in respect of the full financial )'ear ended March 31, 2020 and March 31, 2019, respective!)' and published )'ear to dale figures up to third quarter ended December 31, 2019 and December 31, 2018, respectively, regrouped as necessary.

Place: Hyderabad Dale : April30, 2020

2§[~~

Bj• order of the Board For Laurus Labs Limited

Whole Time Director & Chief Executive Officer

Registered Office: Plot No:21. Jawaharlal Nehru Pharma City. Parawada. Visakhapatnam- 531021, Andhra Pradesh, India. CIN : L2t.239AP2005PLC0t.7518 T +91 891 3061222 F +91 891 3061270 E info@lauruslabs.com W lauruslabs.com

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS Ingredients Active Pharmaceuticallngl"edienls & lnterrnedates Finished Dosage Forms Contract Development & Manufacturing Services SpedaHy logedents for f'.krtraceutical & Alieq rdlstry

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

TO THE BOARD OF DIRECTORS OF LAURUS LABS LIMITED

Opinion and Conclusion

We have (a) audited the Consolidated Financial Results for the year ended March 31, 2020 and;

(b) reviewed the Consolidated Financial Results for the quarter ended March 31, 2020 (refer 'Other Matters' section below), which were subject to limited review by us,

both ((a) and (b)) included in the accompanying "Statement of Audited Consolidated Financial Results for the year ended March 31, 2020 and Unaudited Consolidated Financial Results for the quarter ended March 31, 2020" of LAURUS LABS LIMITED ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), 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 / financial information of subsidiaries referred to in Other Matters section below, the Consolidated Financial Results for the year ended March 31, 2020:

• (i) includes the results of the following entities:
  • a) Laurus Labs Limited, the Parent
  • b) Sriam Labs Private Limited, India, wholly-owned subsidiary
  • c) Laurus Synthesis Inc., United States of America, wholly-owned subsidiary
  • d) Laurus Holdings Limited (LHL), United Kingdom, wholly-owned subsidiary
  • e) Laurus Generics Inc., United States of America (subsidiary of (d) above)
  • f) Laurus Generics GmbH, Germany (subsidiary of (d) above)
• (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 March 31, 2020.

n d e d M a r c h 3 1 , 2 0 2 0

i t h r e s p e c t t o t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e q u a r t e r e n d e d a r c h 3 1 , 2 0 2 0 , b a s e d o n o u r r e v i e w c o n d u c t e d a n d p r o c e d u r e s p e r f o r m e d a s s t a t e d p a r a g r a p h ( b ) o f A u d i t o r ' s R e s p o n s i b i l i t i e s s e c t i o n b e l o w a n d b a s e d o n t h e o n s i d e r a t i o n o f t h e r e v i e w r e p o r t s o f t h e o t h e r a u d i t o r s r e f e r r e d t o i n O t h e r M a t t e r s e c t i o n b e l o w , n o t h i n g h a s c o m e t o o u r a t t e n t i o n t h a t c a u s e s u s t o b e l i e v e t h a t t h e o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e q u a r t e r e n d e d M a r c h 3 1 , 2 0 2 0 , p r e p a r e d i n c c o r d a n c e w i t h t h e r e c o g n i t i o n a n d m e a s u r e m e n t p r i n c i p l e s l a i d d o w n i n t h e I n d i a n c c o u n t i n g S t a n d a r d s a n d o t h e r a c c o u n t i n g p r i n c i p l e s g e n e r a l l y a c c e p t e d i n I n d i a , a s n o t d i s c l o s e d t h e i n f o r m a t i o n r e q u i r e d t o b e d i s c l o s e d i n t e r m s o f R e g u l a t i o n 3 3 f t h e S E B I ( L i s t i n g O b l i g a t i o n s a n d D i s c l o s u r e R e q u i r e m e n t s ) R e g u l a t i o n s , 2 0 1 5 , a s m e n d e d , i n c l u d i n g t h e m a n n e r i n w h i c h i t i s t o b e d i s c l o s e d , o r t h a t i t c o n t a i n s a n y a t e r i a l m i s s t a t e m e n t .

n d e d M a r c h 3 1 , 2 0 2 0

e c o n d u c t e d o u r a u d i t i n a c c o r d a n c e w i t h t h e S t a n d a r d s o n A u d i t i n g ( " S A s " ) s p e c i f i e d n d e r S e c t i o n 1 4 3 ( 1 0 ) o f t h e C o m p a n i e s A c t , 2 0 1 3 ( " t h e A c t " ) . O u r r e s p o n s i b i l i t i e s u n d e r o s e S t a n d a r d s a r e f u r t h e r d e s c r i b e d i n p a r a g r a p h ( a ) o f A u d i t o r ' s R e s p o n s i b i l i t i e s e c t i o n b e l o w . W e a r e i n d e p e n d e n t o f t h e G r o u p , i n a c c o r d a n c e w i t h t h e C o d e o f E t h i c s s u e d b y t h e I n s t i t u t e o f C h a r t e r e d A c c o u n t a n t s o f I n d i a ( " I C A I " ) t o g e t h e r w i t h t h e t h i c a l r e q u i r e m e n t s t h a t a r e r e l e v a n t t o o u r a u d i t o f t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0 u n d e r t h e p r o v i s i o n s o f t h e A c t a n d t h e R u l e s e r e u n d e r , a n d w e h a v e f u l f i l l e d o u r o t h e r e t h i c a l r e s p o n s i b i l i t i e s i n a c c o r d a n c e w i t h e s e r e q u i r e m e n t s a n d t h e I C A I ' s C o d e o f E t h i c s . W e b e l i e v e t h a t t h e a u d i t e v i d e n c e b t a i n e d b y u s a n d t h e o t h e r a u d i t o r s i n t e r m s o f t h e i r r e p o r t s r e f e r r e d t o i n O t h e r M a t t e r s e c t i o n b e l o w i s s u f f i c i e n t a n d a p p r o p r i a t e t o p r o v i d e a b a s i s f o r o u r a u d i t o p i n i o n .

a n a g e m e n t ' s R e s p o n s i b i l i t i e s f o r t h e S

h i s S t a t e m e n t , w h i c h i n c l u d e s t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s i s t h e r e s p o n s i b i l i t y o f e P a r e n t ' s B o a r d o f D i r e c t o r s a n d h a s b e e n a p p r o v e d b y t h e m f o r t h e i s s u a n c e . T h e o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0 , h a s b e e n c o m p i l e d f r o m t h e r e l a t e d a u d i t e d c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s T h i s r e s p o n s i b i l i t y i n c l u d e s t h e r e p a r a t i o n a n d p r e s e n t a t i o n o f t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e q u a r t e r a n d e a r e n d e d M a r c h 3 1 , 2 0 2 0 t h a t g i v e a t r u e a n d f a i r v i e w o f t h e c o n s o l i d a t e d n e t p r o f i t n d c o n s o l i d a t e d o t h e r c o m p r e h e n s i v e i n c o m e a n d o t h e r f i n a n c i a l i n f o r m a t i o n o f t h e r o u p i n a c c o r d a n c e w i t h t h e r e c o g n i t i o n a n d m e a s u r e m e n t p r i n c i p l e s l a i d d o w n i n t h e n d i a n A c c o u n t i n g S t a n d a r d s , p r e s c r i b e d u n d e r S e c t i o n 1 3 3 o f t h e A c t , r e a d w i t h r e l e v a n t u l e s i s s u e d t h e r e u n d e r a n d o t h e r a c c o u n t i n g p r i n c i p l e s g e n e r a l l y a c c e p t e d i n I n d i a a n d c o m p l i a n c e w i t h R e g u l a t i o n 3 3 o f t h e L i s t i n g R e g u l a t i o n s .

h e r e s p e c t i v e B o a r d o f D i r e c t o r s o f t h e c o m p a n i e s i n c l u d e d i n t h e G r o u p a r e r e s p o n s i b l e f o r m a i n t e n a n c e o f a d e q u a t e a c c o u n t i n g r e c o r d s i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h e c t f o r s a f e g u a r d i n g t h e a s s e t s o f t h e G r o u p f o r p r e v e n t i n g a n d d e t e c t i n g f r a u d s a n d t h e r i r r e g u l a r i t i e s ; s e l e c t i o n a n d a p p l i c a t i o n o f a p p r o p r i a t e a c c o u n t i n g p o l i c i e s ; m a k i n g u d g m e n t s a n d e s t i m a t e s t h a t a r e r e a s o n a b l e a n d p r u d e n t ; a n d t h e d e s i g n , p l e m e n t a t i o n a n d m a i n t e n a n c e o f a d e q u a t e i n t e r n a l f i n a n c i a l c o n t r o l s , t h a t w e r e p e r a t i n g e f f e c t i v e l y f o r e n s u r i n g t h e a c c u r a c y a n d c o m p l e t e n e s s o f t h e a c c o u n t i n g e c o r d s , r e l e v a n t t o t h e p r e p a r a t i o n a n d p r e s e n t a t i o n o f t h e r e s p e c t i v e f i n a n c i a l r e s u l t s a t g i v e a t r u e a n d f a i r v i e w a n d a r e f r e e f r o m m a t e r i a l m i s s t a t e m e n t , w h e t h e r d u e t o f r a u d o r e r r o r , w h i c h h a v e b e e n u s e d f o r t h e p u r p o s e o f p r e p a r a t i o n o f t h i s C o n s o l i d a t e d i n a n c i a l R e s u l t s b y t h e D i r e c t o r s o f t h e P a r e n t , a s a f o r e s a i d .

n p r e p a r i n g t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s , t h e r e s p e c t i v e B o a r d o f D i r e c t o r s o f t h e o m p a n i e s i n c l u d e d i n t h e G r o u p a r e r e s p o n s i b l e f o r a s s e s s i n g t h e a b i l i t y o f t h e r e s p e c t i v e n t i t i e s t o c o n t i n u e a s a g o i n g c o n c e r n , d i s c l o s i n g , a s a p p l i c a b l e , m a t t e r s r e l a t e d t o g o i n g o n c e r n a n d u s i n g t h e g o i n g c o n c e r n b a s i s o f a c c o u n t i n g u n l e s s t h e r e s p e c t i v e B o a r d o f i r e c t o r s e i t h e r i n t e n d s t o l i q u i d a t e t h e i r r e s p e c t i v e e n t i t i e s o r t o c e a s e o p e r a t i o n s , o r a s n o r e a l i s t i c a l t e r n a t i v e b u t t o d o s o .

h e r e s p e c t i v e B o a r d o f D i r e c t o r s o f t h e c o m p a n i e s i n c l u d e d i n t h e G r o u p a r e r e s p o n s i b l e f or o v e r s e e i n g t h e f i n a n c i a l r e p o r t i n g p r o c e s s o f t h e G r o u p .

u d i t o r ' s R e s p o n s i b i l i t i e s

0 2 0

a t e r i a l m i s s t a t e m e n t , w h e t h e r d u e t o f r a u d o r e r r o r , a n d t o i s s u e a n a u d i t o r ' s p o r t t h a t in c lu d e s o u r o p in io n . R e a s o n a b le a s s u r a n c e is a h i g h le v e l o f a s s u r a n c e , g u a r a n te e t h a t a n a u d it c o n d u c t e d in a c c o r d a n c e w i t h S A s w i l l a lw a y s x is ts . M is s ta t e m e n t s c a n a r is e fr o m fr a u d g g r e g a t e , th e y c o u ld x p e c t e d to in f l u e n c e th e e c o n o m ic d e c is io n s o f u s e r s t a k e n o n th e

A s p a r t o f a n a u d it in a c c o r d a n c e w i t h S A s , w e e x e r c is e p r o fe s s io n a l j u d g m e n t a n d p r o fe s s io n a l s k e p t ic is m th r o u g h o u t t h e a u d it . W e a ls o :

• I k s o f m a te r ia l m is s ta t e m e n t o f th e A n n u a l g n a n d p e r fo r m a u d it p r o c e d u r e s r e s p o n s iv e t o t h o s e r is k s , a n d o b ta in a u d it e v id e n c e p p r o p r ia te t o p r o v id e a b a s is fo r o u r o p in io n . T h e r is k o f g a m a te r ia l m is s ta t e m e n t r e s u l t i n g fr o m fr a u d is h i g h e r t h a n fo r g fr o m e r r o r , a s fr a u d m a y in v o lv e c o l l u s io n , fo r g e r y , in t e n t i o n a l p r e s e n t a t io n s , o r th e o v e r r id e o f in te r n a l c o n tr o l .

• g o f in te r n a l c o n tr o l r e le v a n t t o t h e a u d it in o r d e r t o e s i g n a u d it p r o c e d u r e s th a t a r e a p p r o p r ia t e in t h e c ir c u m s ta n c e s , b u t n o t fo r e p u r p o s e o f e x p r e s s in g a n o p in io n o n th e e f f e c t iv e n e s s o f s u c h c o n t r o ls .

• E p p r o p r ia t e n e s s o f a c c o u n t in g p o l i c ie s u s e d a n d t h e g e s t i m a te s m a d e b y t h e B o a r d o f D ir e c to r s .

• E p p r o p r ia t e n e s s a n d r e a s o n a b le n e s s o f d is c lo s u r e s m a d e b y t h e B o a r d o f D ir e c to r s in t e r m s o f th e r e q u ir e m e n ts s p e c i f i e d u n d e r R e g u la t i o n 3 3 L is t i n g R e g u la t i o n s .

• C n c lu d e o n th e a p p r o p r ia te n e s s o f th e B o a r d o f D ir e c t o r s ' u s e o f t h e g o in g g a n d , b a s e d o n t h e a u d it e v id e n c e o b t a in e d , x is t s r e la t e d t o e v e n ts o r c o n d i t i o n s t h a t m a y g n i f i c a n t d o u b t o n th e a b i l i t y o f th e G r o u p t o c o n t i n u e a s a g o in g c o n c e r n . I x is ts , w e a r e r e q u ir e d t o d r a w t t e n t i o n i n o u r a u d i t o r ' s r e p o r t t o th e r e la te d d is c lo s u r e s in t h e C n s o l i d a t e d i n a n c i a l R e s u l t s o r , i f s u c h d i s c l o s u r e s a r e i n a d e q u a t e , t o m o d i f y o u r o p in io n . p t o t h e d a te o f o u r u d i t o r ' s r e p o r t . H o w e v e r , fu t u r e e v e n t s o r c o n d i t i o n s m a y c a u s e t h e G r o u p t o g o in g c o n c e r n .

• E v a l u a t e t h e o v e r a l l p r e s e n t a t i o n , s t r u c t u r e a n d c o n t e n t o f t h e A n n u a l C o n s o l i d a t e d F i n a n c i a l R e s u l t s , i n c l u d i n g t h e d i s c l o s u r e s , a n d w h e t h e r t h e A n n u a l C o n s o l i d a t e d F i n a n c i a l R e s u l t s r e p r e s e n t t h e u n d e r l y i n g t r a n s a c t i o n s a n d e v e n t s i n a m a n n e r t h a t a c h i e v e s f a i r p r e s e n t a t i o n .

• P e r f o r m p r o c e d u r e s i n a c c o r d a n c e w i t h t h e c i r c u l a r i s s u e d b y t h e S E B I u n d e r R e g u l a t i o n 3 3 ( 8 ) o f t h e L i s t i n g R e g u l a t i o n s t o t h e e x t e n t a p p l i c a b l e .

• O b t a i n s u f f i c i e n t a p p r o p r i a t e a u d i t e v i d e n c e r e g a r d i n g t h e A n n u a l S t a n d a l o n e F i n a n c i a l R e s u l t s / F i n a n c i a l I n f o r m a t i o n o f t h e e n t i t i e s w i t h i n t h e G r o u p t o e x p r e s s a n o p i n i o n o n t h e A n n u a l C o n s o l i d a t e d F i n a n c i a l R e s u l t s . W e a r e r e s p o n s i b l e f o r t h e d i r e c t i o n , s u p e r v i s i o n a n d p e r f o r m a n c e o f t h e a u d i t o f f i n a n c i a l i n f o r m a t i o n o f s u c h e n t i t y i n c l u d e d i n t h e A n n u a l C o n s o l i d a t e d F i n a n c i a l R e s u l t s o f w h i c h w e a r e t h e i n d e p e n d e n t a u d i t o r s . F o r t h e o t h e r e n t i t i e s i n c l u d e d i n t h e A n n u a l C o n s o l i d a t e d F i n a n c i a l R e s u l t s , w h i c h h a v e b e e n a u d i t e d b y t h e o t h e r a u d i t o r s , s u c h o t h e r a u d i t o r s r e m a i n r e s p o n s i b l e f o r t h e d i r e c t i o n , s u p e r v i s i o n a n d p e r f o r m a n c e o f t h e a u d i t s c a r r i e d o u t b y t h e m . W e r e m a i n s o l e l y r e s p o n s i b l e f o r o u r a u d i t o p i n i o n .

a t e r i a l i t y i s t h e m a g n i t u d e o f m i s s t a t e m e n t s i n t h e A n n u a l C o n s o l i d a t e d F i n a n c i a l R e s u l t s t h a t , i n d i v i d u a l l y o r i n a g g r e g a t e , m a k e s i t p r o b a b l e t h a t t h e e c o n o m i c d e c i s i o n s o f a r e a s o n a b l y k n o w l e d g e a b l e u s e r o f t h e A n n u a l C o n s o l i d a t e d F i n a n c i a l R e s u l t s m a y b e i n f l u e n c e d . W e c o n s i d e r q u a n t i t a t i v e m a t e r i a l i t y a n d q u a l i t a t i v e f a c t o r s i n ( i ) p l a n n i n g t h e s c o p e o f o u r a u d i t w o r k a n d i n e v a l u a t i n g t h e r e s u l t s o f o u r w o r k ; a n d ( i i ) t o e v a l u a t e t h e e f f e c t o f a n y i d e n t i f i e d m i s s t a t e m e n t s i n t h e A n n u a l C o n s o l i d a t e d F i n a n c i a l R e s u l t s .

W e c o m m u n i c a t e w i t h t h o s e c h a r g e d w i t h g o v e r n a n c e o f t h e P a r e n t a n d s u c h o t h e r e n t i t i e s i n c l u d e d i n t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s o f w h i c h w e a r e t h e i n d e p e n d e n t a u d i t o r s r e g a r d i n g , a m o n g o t h e r m a t t e r s , t h e p l a n n e d s c o p e a n d t i m i n g o f t h e a u d i t a n d s i g n i f i c a n t a u d i t f i n d i n g s i n c l u d i n g a n y s i g n i f i c a n t d e f i c i e n c i e s i n i n t e r n a l c o n t r o l t h a t w e i d e n t i f y d u r i n g o u r a u d i t .

W e a l s o p r o v i d e t h o s e c h a r g e d w i t h g o v e r n a n c e w i t h a s t a t e m e n t t h a t w e h a v e c o m p l i e d w i t h r e l e v a n t e t h i c a l r e q u i r e m e n t s r e g a r d i n g i n d e p e n d e n c e , a n d t o c o m m u n i c a t e w i t h t h e m a l l r e l a t i o n s h i p s a n d o t h e r m a t t e r s t h a t m a y r e a s o n a b l y b e t h o u g h t t o b e a r o n o u r i n d e p e n d e n c e , a n d w h e r e a p p l i c a b l e , r e l a t e d s a f e g u a r d s .

( b ) R e v i e w o f t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e q u a r t e r e n d e d M a r c h 3 1 , 2 0 2 0

W e c o n d u c t e d o u r r e v i e w o f t h e C o n s o l i d a t e d F i n a n c i a l R e s u l t s f o r t h e q u a r t e r e n d e d a r c h 3 1 , 2 0 2 0 i n a c c o r d a n c e w i t h t h e S t a n d a r d o n R e v i e w E n g a g e m e n t s ( S R E ) 2 4 1 0 ' R e v i e w o f I n t e r i m F i n a n c i a l I n f o r m a t i o n P e r f o r m e d b y t h e I n d e p e n d e n t A u d i t o r o f t h e E n t i t y ' , i s s u e d b y t h e I C A I . A r e v i e w o f i n t e r i m f i n a n c i a l i n f o r m a t i o n c o n s i s t s o f m a k i n g i n q u i r i e s , p r i m a r i l y o f t h e C o m p a n y ' s p e r s o n n e l r e s p o n s i b l e f o r f i n a n c i a l a n d a c c o u n t i n g m a t t e r s , a n d a p p l y i n g a n a l y t i c a l a n d o t h e r r e v i e w p r o c e d u r e s . A r e v i e w i s s u b s t a n t i a l l y l e s s i n s c o p e t h a n a n a u d i t c o n d u c t e d i n a c c o r d a n c e w i t h S A s p e c i f i e d u n d e r s e c t i o n 1 4 3 ( 1 0 ) o f t h e A c t a n d c o n s e q u e n t l y d o e s n o t e n a b l e u s t o o b t a i n a s s u r a n c e t h a t w e w o u l d b e c o m e a w a r e o f a l l s i g n i f i c a n t m a t t e r s t h a t m i g h t b e i d e n t i f i e d i n a n a u d i t . A c c o r d i n g l y , w e d o n o t e x p r e s s a n a u d i t o p i n i o n .

T h e S t a t e m e n t i n c l u d e s t h e r e s u l t s o f t h e e n t i t i e s a s l i s t e d u n d e r p a r a g r a p h ( a ) ( i ) o f O p i n i o n a n d C o n c l u s i o n s e c t i o n a b o v e .

W e a l s o p e r f o r m e d p r o c e d u r e s i n a c c o r d a n c e w i t h t h e c i r c u l a r i s s u e d b y t h e S E B I u n d e r R e g u l a t i o n 3 3 ( 8 ) o f t h e S E B I ( L i s t i n g O b l i g a t i o n s a n d D i s c l o s u r e R e q u i r e m e n t s ) R e g u l a t i o n s , 2 0 1 5 , a s a m e n d e d , t o t h e e x t e n t a p p l i c a b l e .

O t h e r M a t t e r s

• · A s s t a t e d i n N o t e 1 0 o f t h e S t a t e m e n t , t h e f i g u r e s f o r t h e c o r r e s p o n d i n g q u a r t e r e n d e d a r c h 3 1 , 2 0 1 9 a r e t h e b a l a n c i n g f i g u r e s b e t w e e n t h e a n n u a l a u d i t e d f i g u r e s f o r t h e y e a r t h e n e n d e d a n d t h e y e a r t o d a t e f i g u r e s f o r t h e 9 m o n t h s p e r i o d e n d e d D e c e m b e r 3 1 , 2 0 1 8 . W e h a v e n o t i s s u e d a s e p a r a t e l i m i t e d r e v i e w r e p o r t o n t h e r e s u l t s a n d f i g u r e s f o r t h e q u a r t e r e n d e d a r c h 3 1 , 2 0 1 9 . O u r r e p o r t i s n o t m o d i f i e d i n r e s p e c t
• o f t h i s m a t t e r · T h e S t a t e m e n t i n c l u d e s t h e r e s u l t s f o r t h e Q u a r t e r e n d e d a r c h 3 1 , 2 0 2 0 b e i n g t h e b a l a n c i n g f i g u r e b e t w e e n a u d i t e d f i g u r e s i n r e s p e c t o f t h e f u l l f i n a n c i a l y e a r a n d t h e p u b l i s h e d y e a r t o d a t e f i g u r e s u p t o t h e t h i r d q u a r t e r o f t h e c u r r e n t f i n a n c i a l y e a r w h i c h w e r e s u b j e c t t o l i m i t e d r e v i e w b y u s . O u r r e p o r t i s n o t m o d i f i e d i n r e s p e c t o f
• t h i s m a t t e r · W e d i d n o t a u d i t t h e f i n a n c i a l s t a t e m e n t s / f i n a n c i a l i n f o r m a t i o n o f f i v e s u b s i d i a r i e s i n c l u d e d i n t h e c o n s o l i d a t e d f i n a n c i a l r e s u l t s , w h o s e f i n a n c i a l s t a t e m e n t s / f i n a n c i a l i n f o r m a t i o n r e f l e c t t o t a l a s s e t s o f 7 4 4 . 7 4 m i l l i o n a s a t a r c h 3 1 , 2 0 2 0 a n d t o t a l r e v e n u e s o f 2 8 3 . 6 6 m i l l i o n a n d 9 4 4 . 2 1 m i l l i o n f o r t h e q u a r t e r a n d y e a r e n d e d a r c h 3 1 , 2 0 2 0 r e s p e c t i v e l y , t o t a l n e t l o s s a f t e r t a x o f 2 3 . 8 8 m i l l i o n a n d 1 1 7 . 2 2 m i l l i o n f o r t h e q u a r t e r a n d y e a r e n d e d a r c h 3 1 , 2 0 2 0 r e s p e c t i v e l y a n d t o t a l c o m p r e h e n s i v e l o s s o f 2 4 . 5 2 m i l l i o n a n d 1 1 7 . 8 6 m i l l i o n f o r t h e q u a r t e r a n d y a r c h 3 1 , 2 0 2 0 r e s p e c t i v e l y a n d n e t c a s h o u t f l o w s o f 1 7 . 3 1 m i l l i o n f o r t h e y a r c h 3 1 , 2 0 2 0 , a s c o n s i d e r e d i n t h e S t a t e m e n t . T h e s e f i n a n c i a l s t a t e m e n t s / f i n a n c i a l i n f o r m a t i o n h a v e b e e n a u d i t e d , b y o t h e r a u d i t o r s w h o s e r e p o r t s h a v e b e e n f u r n i s h e d t o u s b y a n a g e m e n t a n d o u r o p i n i o n a n d c o n c l u s i o n o n t h e S t a t e m e n t , i n s o f a r a s i t r e l a t e s t o t h e a m o u n t s a n d d i s c l o s u r e s i n c l u d e d i n r e s p e c t o f t h e s e s u b s i d i a r i e s , i s b a s e d s o l e l y o n t h e r e p o r t s o f t h e o t h e r a u d i t o r s a n d t h e p r o c e d u r e s p e r f o r m e d b y u s a s s t a t e d u n d e r A u d i t o r ' s R e s p o n s i b i l i t i e s

s e c t i o n a b o v e . O u r r e p o r t o n t h e S t a t e m e n t i s n o t m o d i f i e d i n r e s p e c t o f t h e a b o v e m a t t e r w i t h r e s p e c t

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t o o u r r e l i a n c e o n t h e w o r k d o n e a n d t h e r e p o r t s o f t h e o t h e r a u d i t o r s . o r D E L O I T T E H A S K I N S & S E L L S L L P h a r t e r e d A c c o u n t a n t s r m ' s R e g i s t r a t i o n N o .

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l a c e : A p r i l 3 0 , 2 0 2 0 D a t e : H y

laurus labs limited Corporate Office

2"" Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad- 50003t., Telangana, India T +91 t.O 3980t.333 I 23t.2 0500 I 501 F +91 t.O 3980 t.320

LAURUS LABS LIMITED

(CIN: L24239AP2005PLC047518)

Regd.Office: Plot No.21, Jawaharlal Nehru Pharma City, Parawada, Visakhapatnam 531 021, Andhra Pradesh, India.

Corp. Office: 2nd Floor, Serene Chambers, Road No.7, Banjara Hills, Hyderabad 500034, Telangana, India. Tel: +9140 3980 4333; Fax:· +91 040 3980 4320; E-mail: secretarial@lauruslabs.com; Website: www.lauruslabs.com STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31,2020

AND UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2020

			Quarter ended		Year ended	'f iuMilliou
Sl.	Particulars	31-Mar-20	31-Dec-19	31-Mar-19	31-Mar-20	31-Mar-19
No.		(Refer note 9)	(Unaudited)	(Refer note 9)
1	Income
	(a) Revenue from operations	8,292.25	7,209.92	6,176.37	27,973.35	22,361.48
	(b) Other income	16.25	19.68	16.21	58.14	161.25
	Total income	8,308.50	7,229.60	6,192.58	28,031.49	22,522.73
2	Expenses
	(a) Cost of materials consumed	4,170.42	3,691.49	3,224.06	16,047.59	12,154.70
	(b) Purchase of traded goods	12.37	19.54	86.80	158.76	223.80
	(c) Changes in inventories of finished goods, work-in-progress
	and stock-in-trade	(36.79)	(136.93)	2.75	(2,180.89)	(289.19)
	(d) Employee benefits expense	834.89	823.26	690.79	3,239.98	2,697.22
	(e) Other expenses	1,383.31	1,302.04	1,048.56	5,005.59	4,060.37
	(f) Depreciation and amortisation expense	451.92	467.15	425.56	1,838.50	1,605.32
	(g) Finance costs	202.90	203.79	169.58	877.14	858.32
	Total expenses	7,019.02	6,370.34	5,648.10	24,986.67	21,310.54
3	Profit before tax (1-2)	1,289.48	859.26	544.48	3,044.82	1,212.19
4	Tax expense
	(a) Current tax	223.65	153.01	119.00	530.03	248.32
	(b) Deferred tax	(59.42)	(73.27)	(14.00)	(155.68)	13.93
	Total Tax expense	164.23	79.74	105.00	374.35	262.25
5	Net Profit after tax (3-4)	1,125.25	779.52	439.48	2,670.47	949.94
6	Other comprehensive income
	Items that will not be reclassified subsequently to profit or loss:
	(i) Remeasurement gains/ (losses) on defi ned benefit plans	(9.56)	(11 .25)	5.31	(14.17)	(36.44)
	(ii) Income tax relating to items that will not be reclassified to profit
	or loss in subsequent periods	3.34	3.93	(1.86)	4.95	12.73
	Items that will be reclassified subsequently to profit or loss:
	(i) Effective portion of gai n/ (loss) on designated portion of hedging
	instruments in a cash flow hedge	(153.18)	10.75	9.25	(133.69)	(10.74)
	(ii) Income tax relating to items that will be reclassified to profit or loss
	in subsequent periods	53.53	(3.76)	(3.23)	46.72	3.75
	Total other comprehensive incomef(loss), net of tax	(105.87)	(0.33)	9.47	(96.19)	(30.70)
7	Total comprehensive income (5+6)	1,019.38	779.19	448.95	2,574.28	919.24
8	Paid-up equity share capital (face value 'l: 10/- each)	1,069.14	1,069.14	1,064.37	1,069.14	1,064.37
9	Other equity				17,088.88	14,844.61
10	Earnings per equity share (face value f 10/- each)
	-Basic('!:)	10.54	7.30	4.13	25.03	8.94
	-Diluted('!:)	10.54	7.30	4.12	25.03	8.92
		(Notmrmw/iS(,/)	(Nv/mrll llll/i:;c.IJ	(Nol nnrrua/iS(d)

See accompanymg notes to the financtal results

Registered Office: Plot No:21, Jawaharlal Nehru Pharma City, Parawada, Visakhapatnam- 531021, Andhra Pradesh, India. CIN: L2t.239AP2005PLCOt. 7518 T +91 891 3061222 F +91 891 3061270 E info@lauruslabs.com W lauruslabs.com

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS Ingredients Active Pharmaceutical Ingredients & Intermediates Finished Dosage Forms Contract Development & fv1anufactufing Services Specialty lngedients for f\Uraceutical & Allied rd.lstry

Laurus Labs Limited Corporate Office

Sl.

2"' Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad- 500034, Telangana. India T +91 40 39804333 /2342 0500 I 501 F +91 40 3980 4320

No. Particulars

March 31, 2020 March 31, 2019

f i11Millio11

Standalone Balance Sheet

I	ASSETS
	Non-current assets
(a)	Property, plant and equipment	16,415.52	15,868.74
(b)	Right-of- use assets	428.87
(c)	Capital work-in- progress	665.25	1,071.45
(d)	Intangible a ssets	97.38	121.16
(e)	Financial assets
	(i) Inveshnents	583.15	583.15
	(ii) Other financial assets	325.34	280.79
(f)	Deferred tax- assets (net)	697.59	489.07
(g)	Income tax assets (net)	7.05	13.29
(h)	Other non-current asse ts	326.98	417.58
	Total non-current assets (1)	19,547.13	18,845.23
	Current assets
(a)	Inventories	8,934.71	6,659.06
(b)	Financial assets
	(i)Trade receiva bles	7,780.35	6,866.42
	(ii)Cash and cash equivalents	8.81	5.16
	(iii) Other balances with banks	0.52	0.53
	Loans(iv)	4.90	4.17
	(v)Other financial asse ts	388.14	197.94
(c)	Other current assets	729.04	604.82
	Total current assets (2)	17,846.47	14,338.10
	Total - assets (1+2)	37,393.60	33,183.33
	II EQUITY AND LIABILITIES
	Equ ity
(a)	Equity share capital	1,069.14	1,064.37
(b)	Other equity	17,088.88	14,844.61
	Total equity (1)	18,158.02	15,908.98
	Liabilities
	Non-current liabilities
(a)	Financial liabilities
	(i) Borrowings	1,650.04	2,586.60
	(ii) Lease liabilities	205.59	-
(b)	Provisions	445.34	292.22
(c)	Other non-current liabilities	567.42	601.16
	Total non-current liabilities (2)	2,868.39	3,479.98
	Current liabilities
(a)	Financial liabilities
	Borrowings(i)	7,624.42	6,576.84
	(ii) Trade payables
	-total outstanding dues of micro enterprises and	93.48	66.40
	small enterprises
	-total outstanding dues of creditors other than micro	5,941.94	4,707.63
	enterprises and small enterprises
	(iii) Lease liabilities	19.94	-
	(iv) Current maturities and other financial liabilities	1,670.22	1,628.10
(b)	Other current liabilities	773.64	746.95
(c)	Provisions	109.12	64.46
(d)	Income tax liabilities (net)	134.43	3.99
	Total current liabilities (3)	16,367.19	13,794.37
	Total - equity and liabilities (1 +2+3)	37,393.60	33,183.33

Registered Office :Plot No:21, Jawaharlal Nehru Pharma City, Parowada, Visakhapatnam - 531021, Andhra Pradesh, India. CIN : L24239AP2005PLC047518 T +91 891 3061222 F +91 891 3061270 E info@lauruslabs.com W lauruslabs.com

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS Ingredients Active Pharmaceutical Ingredients & Intermediates Fini shed Dosage Forms Contract Development & Manufacturing Services Specialty lngredents tor f'.l.rtraceutical & Alfled rdustry

Laurus Labs Limited

Corporate Office 2"' Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad - 50003£,, Telangana, India T +91 L,O 3980£,333 I 23£,2 0500 I 501 F +91 L,O 3980 £, 320

LAURUS Labs Knowledge . Innovation . Excellence

Standalone Statement of Cash Flows

Standalone Statement of Cash Flows		f iuMilliou
Particulars	March 31, 2020	For the year ended For the year endedMarch 31, 2019
Profit before tax	3,044.82	1,212.19
Cash Flows from operating activities
Adjustments for :
Depreciation and amortisation	1,838.50	1,605.32
Loss on sale of fixed assets (net)	8.08	7.94
Finance income	(9.46)	(8.61)
Interest expense	826.78	837.77
Share based payment expense	36.65	24.20
Net loss on foreign exchange fluctuations (unrealised)	148.37	46.91
Provisions no longer required written back	(2.26)	(94.70)
Allowance for bad and doubtful advance and debts	35.19	2.95
Operating profit before working capital changes	5,926.67	3,633.97
Movement in working capital:
Increase in inventories	(2,275.64)	(901.31)
Increase in trade receivables	(753.53)	(1,391.95)
(Increase)/ decrease in financial and non-financial assets	(348.52)	70.37
Increase in trade payables	1,129.31	1,815.92
lncrease/(decrease) in financial, non-financial liabilities and provisions	162.92	(41.92)
Cash generated from operations	3,841.21	3,185.08
Income tax paid	(394.51)	(253.40)
Net cash flows from operating activities (A)	3,446.70	2,931.68
Cash flows used in investing activities
Purchase of property, plant and equipment, including intangible assets, capitalwork in progress and capital advances	(2,179.56)	(2,513.75)
Proceeds from sale of property, plant and equipment	1.76	5.03
Investment in subsidiaries	-	(65.73)
Interest received	9.46	8.61
Net cash flows used in investing activities (B)	(2,168.34)	(2,565.84)
Net cash flows from financing activities
Proceeds from exercise of employee stock options	26.10	24.31
Repayment of long- term borrowings	(990.19)	(819.39)
Proceeds from long- term borrowings	-	2,082.54
Proceeds from Short- term borrowings (net)	942.40	(64Q.43)
Payment of lease liabilities	(25.56)	-
Dividend paid	(320.03)	(159.04)
Tax on dividend	(65.78)	(32.69)
Interest paid	(841.65)	(824.64)
Net cash flows used in financing activities (C)	(1,274.71)	(369.34)
Net increase/(decrease) in cash and cash equivalents (A+B+C)	3.65	(3.50)
Cash and cash equivalents at the beginning of the year	5.16	8.66
Cash and cash equivalents at the year end	8.81	5.16

Registered Office: Plot No:21 , Jawaharlal Nehru Pharma City. Parawada, Visakhapatnam - 531021, Andhra Pradesh. India. CIN: L2L,239AP2005PLCOL,7518 T +91 891 3061222 F +91 891 3061270 E info@lauruslabs.com W lauruslabs.com

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS Ingredients Active Pharmaceutical Ingredients & lntermedates Finished Dosage Forms Contract Development & Ma:oofacturYlg Services Spedalty r.gredents fa" I'Uraceutical & Alled r.dustry

2"" Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad - 500034, Telangana, India T +91 40 39804333 I 2342 0500 I 501 F +91 40 3980 4320

LAURUS Labs Knowledge . Innovation . Excellence

Notes:

• 1 The above standalone financial results of Laurus Labs Limited ("the Company") as reviewed by the Audit Committee has been approved by the Board of Directors at its meeting held on April 30, 2020. The results for the year ended March 31, 2020 has been audited and for the quarter ended March 31, 2020 has been reviewed by our statutory auditors. The statutory auditors of the Company have expressed an wmwdified opinion thereon.
• 2 These standalone financial results of the Company have been prepared in accordance with the Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with relevant rules issued thereunder ('IND AS') and other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India ("SEBl").
• 3 In accordance with Indian Accounting Standard (Ind AS) 108 on 'operating segments', segment information has been given in the consolidated financial results of the Company, and therefore no separate disclosure on segment information is given in these standalone financial results.
• 4 During the year ended March 31, 2020, the Company allotted 477,750 equity shares of ~ 10/- each, consequent to the exercise of the stock options by the employees of the Company under the Employee Stock Option Plan.
• 5 Effective April 1, 2019, the Company adopted Ind AS 116 "Leases", applied to all lease contracts existing on April 1, 2019 using the modified retr·ospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives for the year ended March 31,2019 have not been retrospectively adjusted. During the quarter and year ended, the Company has recognised interest expense on lease amounting to~ 4.48 mn, ~ 18.64 mn and depreciation on right-of-use assets amounting to~ 4.20 mn, ~ 19.68 mn respectively.
• 6 11te Board of Directors, at their meeting held on August 02, 2019, approved the proposal to acquire the 100% shares of Phekolong Pharmaceuticals Pty Ltd, a wholly owned subsidiary of Pharmacare Limited t/a Aspen Pha.rmacare, South Aft·ica. The tr·ansaction is expected to close subject to completion of conditions precedent.
• 7 (a) The Board of Directors, at theit· meeting held on March 12, 2020 approved for the payment of ittteritn dividend of~ 1.50/- per share. The Board of Dit·ectors, at their meeting held on April 30, 2020, recommended a final dividend of~ 1.00/- per share, subject to the approval of shareholders.
  • (b) The Board of Di1·ectors, at theit· meeting held on April 30, 2020, recommended for the sub-division of equity shares of the Company hom existing face value of Rs. 10/- each to face value of Rs. 2/- each (i.e. split of 1 equity share of Rs.lO/- each into 5 equity shares of Rs.2/- each), subject to the approval of the shareholders in the ensuing Annual General Meetittg of the Company and other regulatory approvals.
• 8 COVill-19 is the infectious disease caused by the most recently discovered coronavit·us, SARS-CoV-2. In March 2020, the WHO declared COVID-19 a pandemic. The Company has adopted measures to curb the spread of ittfection itt order to protect the health of our employees and ensure business continuity with minitnal disruption.

In assessing the recoverability of receivables and other financials assets, the Company has considered internal and external information upto the date of approval of these Standalone financial results. Tite itnpact of the global health pandemic may be different ft·om that of estimated as at the date of approval of these standalone financial results and the Company will continue to closely monitor any material changes to future economic conditions.

9 The figures for the current quarter and quarter ended March 31, 2019 are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2020 and March 31, 2019, respectively and published year to date figures up to third quarter ended December 31, 2019 and December 31, 2018, respectively, regrouped as necessary.

Place: Hyderabad Date: April 30, 2020

By order of the Board

Wltole Time Director & Chief Executive Officer

Registered Office: Plot No:21, Jawaharlal Nehru Pharma City, Parawada, Visakhapatnam- 531021, Andhra Pradesh, India. CIN: L24239AP2005PLC04 7518 T +91 89 1 3061222 F +9 1 891 3061270 E info@lauruslabs.com W lauruslabs.com

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS Ingredients Active Pharmaceutical Ingredients & lntermedates Finished Dosage Forms Contract Development & Manufacturing Services Specialty lngre<ients for Nutraceutical & Al6ed h:t..lstry

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

TO THE BOARD OF DIRECTORS OF LAURUS LABS LIMITED

Opinion and Conclusion

We have (a) audited the Standalone Financial Results for the year ended March 31, 2020 and;

(b) reviewed the Standalone Financial Results for the quarter ended March 31, 2020 (refer 'Other Matters' section below), which were subject to limited review by us,

both ((a) and (b)) included in the accompanying "Statement of Audited Standalone Financial Results for year ended March 31, 2020 and Unaudited Standalone Financial Results for the quarter ended March 31, 2020" of LAURUS LABS 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 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 March 31, 2020:

• 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 March 31, 2020

With respect to the Standalone Financial Results for the quarter ended March 31, 2020, 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 March 31, 2020, 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.

B a s i s f o r O p i n i o n o n t h e A u d i t e d S t a n d a l o n e F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0

W e c o n d u c t e d o u r a u d i t i n a c c o r d a n c e w i t h t h e S t a n d a r d s o n A u d i t i n g ( " S A s " ) s p e c i f i e d u n d e r S e c t i o n 1 4 3 ( 1 0 ) o f t h e C o m p a n i e s A c t , 2 0 1 3 ( " t h e A c t " ) . O u r r e s p o n s i b i l i t i e s u n d e r t h o s e S t a n d a r d s a r e f u r t h e r d e s c r i b e d i n p a r a g r a p h ( a ) o f A u d i t o r ' s R e s p o n s i b i l i t i e s s e c t i o n b e l o w . W e a r e i n d e p e n d e n t o f t h e C o m p a n y i n a c c o r d a n c e w i t h t h e C o d e o f E t h i c s i s s u e d b y t h e I n s t i t u t e o f C h a r t e r e d A c c o u n t a n t s o f I n d i a ( " t h e I C A I " ) t o g e t h e r w i t h t h e e t h i c a l r e q u i r e m e n t s t h a t a r e r e l e v a n t t o o u r a u d i t o f t h e S t a n d a l o n e F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0 u n d e r t h e p r o v i s i o n s o f t h e A c t a n d t h e R u l e s t h e r e u n d e r , a n d w e h a v e f u l f i l l e d o u r o t h e r e t h i c a l r e s p o n s i b i l i t i e s i n a c c o r d a n c e w i t h t h e s e r e q u i r e m e n t s a n d t h e I C A I ' s C o d e o f E t h i c s . W e b e l i e v e t h a t t h e a u d i t e v i d e n c e o b t a i n e d b y u s i s s u f f i c i e n t a n d a p p r o p r i a t e t o p r o v i d e a b a s i s f o r o u r a u d i t o p i n i o n .

M a n a g e m e n t ' s R e s p o n s i b i l i t i e s f o r t h e S t a t e m e n t

T h i s S t a t e m e n t w h i c h i n c l u d e s t h e S t a n d a l o n e F i n a n c i a l R e s u l t s i s t h e r e s p o n s i b i l i t y o f t h e C o m p a n y ' s B o a r d o f D i r e c t o r s a n d h a s b e e n a p p r o v e d b y t h e m f o r t h e i s s u a n c e . T h e S t a n d a l o n e F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0 h a s b e e n c o m p i l e d f r o m t h e r e l a t e d a u d i t e d s t a n d a l o n e f i n a n c i a l s t a t e m e n t s . T h i s r e s p o n s i b i l i t y i n c l u d e s t h e p r e p a r a t i o n a n d p r e s e n t a t i o n o f t h e S t a n d a l o n e F i n a n c i a l R e s u l t s f o r t h e q u a r t e r a n d y e a r e n d e d M a r c h 3 1 , 2 0 2 0 t h a t g i v e a t r u e a n d f a i r v i e w o f t h e n e t p r o f i t a n d o t h e r c o m p r e h e n s i v e i n c o m e a n d o t h e r f i n a n c i a l i n f o r m a t i o n i n a c c o r d a n c e w i t h t h e r e c o g n i t i o n a n d m e a s u r e m e n t p r i n c i p l e s l a i d d o w n i n t h e I n d i a n A c c o u n t i n g S t a n d a r d s p r e s c r i b e d u n d e r S e c t i o n 1 3 3 o f t h e A c t r e a d w i t h r e l e v a n t r u l e s i s s u e d t h e r e u n d e r a n d o t h e r a c c o u n t i n g p r i n c i p l e s g e n e r a l l y a c c e p t e d i n I n d i a a n d i n c o m p l i a n c e w i t h R e g u l a t i o n 3 3 o f t h e L i s t i n g R e g u l a t i o n s . T h i s r e s p o n s i b i l i t y a l s o i n c l u d e s m a i n t e n a n c e o f a d e q u a t e a c c o u n t i n g r e c o r d s i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h e A c t f o r s a f e g u a r d i n g t h e a s s e t s o f t h e C o m p a n y a n d f o r p r e v e n t i n g a n d d e t e c t i n g f r a u d s a n d o t h e r i r r e g u l a r i t i e s ; s e l e c t i o n a n d a p p l i c a t i o n o f a p p r o p r i a t e a c c o u n t i n g p o l i c i e s ; m a k i n g j u d g m e n t s a n d e s t i m a t e s t h a t a r e r e a s o n a b l e a n d p r u d e n t ; a n d t h e d e s i g n , i m p l e m e n t a t i o n a n d m a i n t e n a n c e o f a d e q u a t e i n t e r n a l f i n a n c i a l c o n t r o l s t h a t w e r e o p e r a t i n g e f f e c t i v e l y f o r e n s u r i n g t h e a c c u r a c y a n d c o m p l e t e n e s s o f t h e a c c o u n t i n g r e c o r d s , r e l e v a n t t o t h e p r e p a r a t i o n a n d p r e s e n t a t i o n o f t h e S t a n d a l o n e F i n a n c i a l R e s u l t s t h a t g i v e a t r u e a n d f a i r v i e w a n d i s f r e e f r o m m a t e r i a l m i s s t a t e m e n t , w h e t h e r d u e t o f r a u d o r e r r o r .

I n p r e p a r i n g t h e S t a n d a l o n e F i n a n c i a l R e s u l t s , t h e B o a r d o f D i r e c t o r s a r e r e s p o n s i b l e f o r a s s e s s i n g t h e C o m p a n y ' s a b i l i t y , t o c o n t i n u e a s a g o i n g c o n c e r n , d i s c l o s i n g , a s a p p l i c a b l e , m a t t e r s r e l a t e d t o g o i n g c o n c e r n a n d u s i n g t h e g o i n g c o n c e r n b a s i s o f a c c o u n t i n g u n l e s s t h e B o a r d o f D i r e c t o r s e i t h e r i n t e n d s t o l i q u i d a t e t h e C o m p a n y o r t o c e a s e o p e r a t i o n s , o r h a s n o r e a l i s t i c a l t e r n a t i v e b u t t o d o s o .

T h e B o a r d o f D i r e c t o r s a r e a l s o r e s p o n s i b l e f o r o v e r s e e i n g t h e f i n a n c i a l r e p o r t i n g p r o c e s s o f t h e C o m p a n y .

A u d i t o r ' s R e s p o n s i b i l i t i e s

a ) A u d i t o f t h e S t a n d a l o n e F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0

O u r o b j e c t i v e s a r e t o o b t a i n r e a s o n a b l e a s s u r a n c e a b o u t w h e t h e r t h e S t a n d a l o n e F i n a n c i a l R e s u l t s f o r t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 0 a s a w h o l e i s f r e e f r o m m a t e r i a l m i s s t a t e m e n t , w h e t h e r d u e t o f r a u d o r e r r o r , a n d t o i s s u e a n a u d i t o r ' s r e p o r t t h a t i n c l u d e s o u r o p i n i o n . R e a s o n a b l e a s s u r a n c e i s a h i g h l e v e l o f a s s u r a n c e , b u t i s n o t a g u a r a n t e e t h a t a n a u d i t c o n d u c t e d i n a c c o r d a n c e w i t h S A s w i l l a l w a y s d e t e c t a m a t e r i a l m i s s t a t e m e n t w h e n i t e x i s t s . M i s s t a t e m e n t s c a n a r i s e f r o m f r a u d o r e r r o r a n d a r e c o n s i d e r e d m a t e r i a l i f , i n d i v i d u a l l y o r i n t h e a g g r e g a t e , t h e y c o u l d r e a s o n a b l y b e e x p e c t e d t o i n f l u e n c e t h e e c o n o m i c d e c i s i o n s o f u s e r s t a k e n o n t h e b a s i s o f t h i s S t a n d a l o n e F i n a n c i a l R e s u l t s .

A s p a r t o f a n a u d i t i n a c c o r d a n c e w i t h S A s , w e e x e r c i s e p r o f e s s i o n a l j u d g m e n t a n d m a i n t a i n p r o f e s s i o n a l s k e p t i c i s m t h r o u g h o u t t h e a u d i t . W e a l s o :

• I d e n t i f y a n d a s s e s s t h e r i s k s o f m a t e r i a l m i s s t a t e m e n t o f t h e A n n u a l S t a n d a l o n e i n a n c i a l R e s u l t s , w h e t h e r d u e t o f r a u d o r e r r o r , d e s i g n a n d p e r f o r m a u d i t p r o c e d u r e s r e s p o n s i v e t o t h o s e r i s k s , a n d o b t a i n a u d i t e v i d e n c e t h a t i s s u f f i c i e n t a n d a p p r o p r i a t e t o p r o v i d e a b a s i s f o r o u r o p i n i o n . T h e r i s k o f n o t d e t e c t i n g a m a t e r i a l m i s s t a t e m e n t r e s u l t i n g f r o m f r a u d i s h i g h e r t h a n f o r o n e r e s u l t i n g f r o m e r r o r , a s f r a u d m a y i n v o l v e c o l l u s i o n , f o r g e r y , i n t e n t i o n a l o m i s s i o n s , m i s r e p r e s e n t a t i o n s , o r t h e o v e r r i d e o f i n t e r n a l c o n t r o l .
• O b t a i n a n u n d e r s t a n d i n g o f i n t e r n a l c o n t r o l r e l e v a n t t o t h e a u d i t i n o r d e r t o d e s i g n a u d i t p r o c e d u r e s t h a t a r e a p p r o p r i a t e i n t h e c i r c u m s t a n c e s , b u t n o t f o r t h e p u r p o s e o f e x p r e s s i n g a n o p i n i o n o n t h e e f f e c t i v e n e s s o f t h e C o m p a n y ' s i n t e r n a l c o n t r o l .
• E v a l u a t e t h e a p p r o p r i a t e n e s s o f a c c o u n t i n g p o l i c i e s u s e d a n d t h e r e a s o n a b l e n e s s o f a c c o u n t i n g e s t i m a t e s m a d e b y t h e B o a r d o f D i r e c t o r s .
• E v a l u a t e t h e a p p r o p r i a t e n e s s a n d r e a s o n a b l e n e s s o f d i s c l o s u r e s m a d e b y t h e B o a r d o f D i r e c t o r s i n t e r m s o f t h e r e q u i r e m e n t s s p e c i f i e d u n d e r R e g u l a t i o n 3 3 o f t h e L i s t i n g R e g u l a t i o n s .
• C o n c l u d e o n t h e a p p r o p r i a t e n e s s o f t h e B o a r d o f D i r e c t o r s ' u s e o f t h e g o i n g c o n c e r n b a s i s o f a c c o u n t i n g a n d , b a s e d o n t h e a u d i t e v i d e n c e o b t a i n e d , w h e t h e r a m a t e r i a l u n c e r t a i n t y e x i s t s r e l a t e d t o e v e n t s o r c o n d i t i o n s t h a t m a y c a s t s i g n i f i c a n t d o u b t o n t h e a b i l i t y o f t h e C o m p a n y t o c o n t i n u e a s a g o i n g c o n c e r n . I f w e c o n c l u d e t h a t a m a t e r i a l u n c e r t a i n t y e x i s t s , w e a r e r e q u i r e d t o d r a w a t t e n t i o n i n o u r a u d i t o r ' s r e p o r t t o t h e r e l a t e d d i s c l o s u r e s i n t h e S t a t e m e n t o r , i f s u c h d i s c l o s u r e s a r e i n a d e q u a t e , t o m o d i f y o u r o p i n i o n . O u r c o n c l u s i o n s a r e a s e d o n t h e a u d i t e v i d e n c e o t a i n e d u p t o t h e d a t e o f o u r a u d i t o r ' s r e p o r t . o w e v e r , f u t u r e e v e n t s o r c o n d i t i o n s m a y c a u s e t h e C o m p a n y t o c e a s e t o c o n t i n u e a s a g o i n g c o n c e r n .
• E v a l u a t e t h e o v e r a l l p r e s e n t a t i o n , s t r u c t u r e a n d c o n t e n t o f t h e A n n u a l S t a n d a l o n e i n a n c i a l R e s u l t s , i n c l u d i n g t h e d i s c l o s u r e s , a n d w h e t h e r t h e A n n u a l S t a n d a l o n e i n a n c i a l R e s u l t s r e p r e s e n t t h e u n d e r l y i n g t r a n s a c t i o n s a n d e v e n t s i n a m a n n e r t h a t a c h i e v e s f a i r p r e s e n t a t i o n .
• O b t a i n s u f f i c i e n t a p p r o p r i a t e a u d i t e v i d e n c e r e g a r d i n g t h e A n n u a l S t a n d a l o n e i n a n c i a l R e s u l t s o f t h e C o m p a n y t o e x p r e s s a n o p i n i o n o n t h e A n n u a l S t a n d a l o n e i n a n c i a l R e s u l t s .

a t e r i a l i t y i s t h e m a g n i t u d e o f m i s s t a t e m e n t s i n t h e A n n u a l S t a n d a l o n e i n a n c i a l R e s u l t s t h a t , i n d i v i d u a l l y o r i n a g g r e g a t e , m a k e s i t p r o b a b l e t h a t t h e e c o n o m i c d e c i s i o n s o f a r e a s o n a b l y k n o w l e d g e a b l e u s e r o f t h e A n n u a l S t a n d a l o n e i n a n c i a l R e s u l t s m a y b e i n f l u e n c e d . W e c o n s i d e r q u a n t i t a t i v e m a t e r i a l i t y a n d q u a l i t a t i v e f a c t o r s i n ( i ) p l a n n i n g t h e s c o p e o f o u r a u d i t w o r k a n d i n e v a l u a t i n g t h e r e s u l t s o f o u r w o r k ; a n d ( i i ) t o e v a l u a t e t h e e f f e c t o f a n y i d e n t i f i e d m i s s t a t e m e n t s i n t h e A n n u a l S t a n d a l o n e i n a n c i a l R e s u l t s .

W e c o m m u n i c a t e w i t h t h o s e c h a r g e d w i t h g o v e r n a n c e r e g a r d i n g , a m o n g o t h e r m a t t e r s , t h e p l a n n e d s c o p e a n d t i m i n g o f t h e a u d i t a n d s i g n i f i c a n t a u d i t f i n d i n g s i n c l u d i n g a n y s i g n i f i c a n t d e f i c i e n c i e s i n i n t e r n a l c o n t r o l t h a t w e i d e n t i f y d u r i n g o u r a u d i t .

W e a l s o p r o v i d e t h o s e c h a r g e d w i t h g o v e r n a n c e w i t h a s t a t e m e n t t h a t w e h a v e c o m p l i e d w i t h r e l e v a n t e t h i c a l r e q u i r e m e n t s r e g a r d i n g i n d e p e n d e n c e , a n d t o c o m m u n i c a t e w i t h t h e m a l l r e l a t i o n s h i p s a n d o t h e r m a t t e r s t h a t m a y r e a s o n a b l y b e t h o u g h t t o b e a r o n o u r i n d e p e n d e n c e , a n d w h e r e a p p l i c a b l e , r e l a t e d s a f e g u a r d s .

a r c h 3 1 , 2 0 2 0

W e c o n d u c t e d o u r r e v i e w o f t h e S t a n d a l o n e F i n a n c i a l R e s u l t s f o r t h e q u a r t e r e n d e d M a r c h 3 1 , 2 0 2 0 i n a c c o r d a n c e w i t h t h e S t a n d a r d o n R e v i e w E n g a g e m e n t s ( " S R E " ) 2 4 1 0 ' R e v i e w o f I n t e r i m F i n a n c i a l I n f o r m a t i o n P e r f o r m e d b y t h e I n d e p e n d e n t A u d i t o r o f t h e E n t i t y ' , i s s u e d b y t h e I C f i n a n c i a l a n d a c c o u n t i n g m a t t e r s , a n d a p p l y i n g a n a l y t i c a l a n d o t h e r r e v i e w p r o c e d u r e s . A r e v i e w i s s u b s t a n t i a l l y l e s s i n s c o p e t h a n a n a u d i t c o n d u c t e d i n a c c o r d a n c e w i t h S A s s p e c i f i e d u n d e r s e c t i o n 1 4 3 ( 1 0 ) o f t h e A c t a n d c o n s e q u e n t l y d o e s n o t e n a b l e u s t o o b t a i n a s s u r a n c e t h a t w e w o u l d b e c o m e a w a r e o f a l l s i g n i f i c a n t m a t t e r s t h a t m i g h t b e i d e n t i f i e d i n a n a u d i t . A c c o r d i n g l y , w e d o n o t e x p r e s s a n a u d i t o p i n i o n .

O t h e r M a t t e r s

• · A s s t a t e d i n N o t e 9 o f t h e S t a t e m e n t , t h e f i g u r e s f o r t h e c o r r e s p o n d i n g q u a r t e r e n d e d a r c h 3 1 , 2 0 1 9 a r e t h e b a l a n c i n g f i g u r e s b e t w e e n t h e a n n u a l a u d i t e d f i g u r e s f o r t h e y e a r t h e n e n d e d a n d t h e y e a r t o d a t e f i g u r e s f o r t h e 9 m o n t h s p e r i o d e n d e d D e c e m b e r 3 1 , 2 0 1 8 . W e h a v e n o t i s s u e d a s e p a r a t e l i m i t e d r e v i e w r e p o r t o n t h e r e s u l t s a n d f i g u r e s f o r t h e q u a r t e r e n d e d a r c h 3 1 , 2 0 1 9 .
• · T h e S t a t e m e n t i n c l u d e s t h e r e s u l t s f o r t h e Q u a r t e r e n d e d a r c h 3 1 , 2 0 2 0 b e i n g t h e b a l a n c i n g f i g u r e b e t w e e n a u d i t e d f i g u r e s i n r e s p e c t o f t h e f u l l f i n a n c i a l y e a r a n d t h e p u b l i s h e d y e a r t o d a t e f i g u r e s u p t o t h e t h i r d q u a r t e r o f t h e c u r r e n t f i n a n c i a l y e a r w h i c h w e r e s u b j e c t t o l i m i t e d r e v i e w b y u s .

u r r e p o r t o n t h e S t a t e m e n t i s n o t m o d i f i e d i n r e s p e c t o f t h e s e m a t t e r s .

o r D E L O I T T E H A S K I N S & S E L L S L L P

h a r t e r e d A c c o u n t a n t s 1 1 7 3 6 6 W / W 1 0 0 0 1 8 )

G a n e s h B a l a k r i s h n a n a r t n e r e m b e r s h i p N o . 2 0 1 1 9 3 ) ( U D I N : 2 0 2 0 1 1 9 3 A A A A B 6 4 2 7 )

l a c e : A p r i l 3 0 , 2 0 2 0 D a t e : H y d e r a b a d