Lupin Ltd — AGM Information 2024

Jul 9, 2024

July 9, 2024

==> picture [79 x 93] intentionally omitted <==

 BSE Limited

Department of Corporate Services, P. J. Towers, Dalal Street MUMBAI - 400 001.

National Stock Exchange of India Limited

Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

Dear Sir/Madam,

Sub: Regulation 34(1) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 (‘Listing Regulations’).

In compliance with Regulation 34(1) of the Listing Regulations, we are pleased to enclose the Integrated Report of the Company for the year ended March 31, 2024 along with the Notice convening the Forty-Second Annual General Meeting of the Company at 4.00 p.m. (IST) on Friday, August 2, 2024, through Video Conferencing/Other Audio-Visual Means.

It may kindly be noted that the Integrated Report contains information prescribed by Regulations 34(2) and (3) of the Listing Regulations.

The above is for your information and dissemination.

Thanking you,

For LUPIN LIMITED

Rajvardhan Vishnu Satam

Digitally signed by Rajvardhan Vishnu Satam DN: c=IN, st=Maharashtra, 2.5.4.20=c19d8ef961d9fa59e973a093a4d3924b2532eb2f496ea7 e2abcf74700f5375b7, postalCode=400104, street=2404,SEJAL TOWER,SEJAL PARK,LINK ROAD,GOREGAON WEST,Mumbai,Motilal Nagar,Borivali,Mumbai Suburban, pseudonym=9a4b7cd219ea516ad56e6d651dcbbe5b, title=0191, serialNumber=df8ebe60a88c796663c738ea25bfa0b475d195f72 6cdb67a2ff09c4242771b2a, o=Personal, cn=Rajvardhan Vishnu Satam Date: 2024.07.09 18:53:47 +05'30'

R. V. SATAM COMPANY SECRETARY (ACS - 11973)

Encl: a/a

Registered Office: 3[rd] Floor, Kalpataru Inspire, Off W. E. Highway, Santacruz (East), Mumbai - 400 055 India. Tel: (91-22) 6640 2323. Corporate Identity Number: L24100MH1983PLC029442 www.lupin.com

www.lupin.com

LUPIN LIMITED

Registered Office: Kalpataru Inspire, 3[rd] Floor, Off Western Express Highway, Santacruz (East), Mumbai - 400 055. CIN: L24100MH1983PLC029442 Tel: +91 22 6640 2323 E-mail: investorservices@lupin.com Website: www.lupin.com

NOTICE TO MEMBERS

NOTICE is hereby given that the Forty-Second Annual General Meeting of Lupin Limited will be held on Friday, August 2, 2024, at 4.00 p.m. (IST), through Video Conferencing (‘VC’)/Other Audio-Visual Means (‘OAVM’). The venue of the meeting shall be deemed to be the Registered Office of the Company, at Kalpataru Inspire, 3[rd] Floor, Off Western Express Highway, Santacruz (East), Mumbai - 400 055.

The following business will be transacted at the meeting: -

ORDINARY BUSINESS

1. To receive, consider and adopt the standalone audited financial statements including Balance Sheet as at March 31, 2024, Statement of Profit and Loss for the year ended on that date together with notes forming part of it, Cash Flow Statement for the said year and Reports of the Board of Directors and Auditors thereon.

2. To receive, consider and adopt the consolidated audited financial statements including Balance Sheet as at March 31, 2024, Statement of Profit and Loss for the year ended on that date together with notes forming part of it, Cash Flow Statement for the said year and Report of the Auditors thereon.

3. To declare dividend of ₹ 8/- per equity share, for the year ended March 31, 2024.

4. To consider the re-appointment of Mr. Nilesh D. Gupta (DIN: 01734642), as a Director of the Company, who retires by rotation and being eligible, offers himself, for re-appointment.

SPECIAL BUSINESS

5. To consider and if thought fit, to pass with or without modification(s), the following Resolution as an Ordinary Resolution for the continuation of directorship of Mrs. Manju D. Gupta, Chairman, Non-Executive Director: -

“ RESOLVED THAT pursuant to Section 152 of the Companies Act, 2013 read with Regulation 17(1D) of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, recommendation and approval of the Nomination and Remuneration Committee and Board of Directors, consent of Members of the Company be and is hereby accorded, for the continuation of directorship of Mrs. Manju D. Gupta (DIN: 00209461), Chairman, Non-Executive Director on existing terms and conditions of her appointment.

RESOLVED FURTHER THAT the Board of Directors (‘the Board’), which term shall be deemed to mean and include any Committee constituted by the Board be and is hereby authorised to take such steps as may be necessary, proper and expedient to give effect to this Resolution.”

6. To consider and if thought fit, to pass with or without modification(s), the following Resolution as Special Resolution for the appointment of Mr. Jeffrey Kindler, as an Independent Director of the Company for a period of five years effective May 6, 2024: -

“ RESOLVED THAT pursuant to the provisions of the Articles of Association of the Company, Sections 149, 150 and 152, Schedule IV and other applicable provisions of the Companies Act, 2013 (‘Act’), read with the Companies (Appointment and Qualification of Directors) Rules, 2014 and Regulations 16, 17, 25 and other applicable Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), in each case as amended from time to time, including any re-enactment(s) thereof and as recommended by the Nomination and Remuneration Committee, Mr. Jeffrey Kindler (DIN: 10592395), who was appointed by the Board of Directors as an Additional Director under Section 161(1) of the Act and designated as an Independent Director effective May 6, 2024 and who meets the criteria of independence as prescribed by Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations and has submitted a declaration to that effect and is eligible for appointment and in respect of whom, the Company has received notice in writing pursuant to Section 160 of the Act, from Member proposing his candidature for the office of Director, be and is hereby appointed as an Independent Director of the Company for a period of five years, effective May 6, 2024, i.e., up to May 5, 2029, as set out in the Explanatory Statement annexed hereto and that he shall not be subject to retirement by rotation.

02 LUPIN LIMITED | Integrated Report 2023-2024

RESOLVED FURTHER THAT the Board of Directors (‘the Board’), which term shall be deemed to mean and include any Committee constituted by the Board be and is hereby authorised to take such steps as may be necessary, proper and expedient to give effect to this Resolution.”

7. To consider and if thought fit, to pass with or without modification(s), the following Resolution as Special Resolution for the appointment of Mr. Alfonso Zulueta, as an Independent Director of the Company for a period of five years effective May 6, 2024: -

“ RESOLVED THAT pursuant to the provisions of the Articles of Association of the Company, Sections 149, 150 and 152, Schedule IV and other applicable provisions of the Companies Act, 2013 (‘Act’), read with the Companies (Appointment and Qualification of Directors) Rules, 2014 and Regulations 16, 17, 25 and other applicable Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), in each case as amended from time to time, including any re-enactment(s) thereof and as recommended by the Nomination and Remuneration Committee, Mr. Alfonso Zulueta (DIN: 10597962), who was appointed by the Board of Directors as an Additional Director under Section 161(1) of the Act and designated as an Independent Director effective May 6, 2024 and who meets the criteria of independence as prescribed by Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations and has submitted a declaration to that effect and is eligible for appointment and in respect of whom, the Company has received notice in writing pursuant to Section 160 of the Act, from Member proposing his candidature for the office of Director, be and is hereby appointed as an Independent Director of the Company for a period of five years, effective May 6, 2024, i.e., up to May 5, 2029, as set out in the Explanatory Statement annexed hereto and that he shall not be subject to retirement by rotation.

RESOLVED FURTHER THAT the Board of Directors (‘the Board’), which term shall be deemed to mean and include any Committee constituted by the Board be and is hereby authorised to take such steps as may be necessary, proper and expedient to give effect to this Resolution.”

8. To consider and if thought fit, to pass with or without modification(s), the following Resolution as an Ordinary Resolution for payment of commission to Non-Executive Directors: -

“ RESOLVED THAT pursuant to the provisions of the Articles of Association of the Company, Sections 197, 198 and any other applicable provisions of the Companies Act, 2013 (‘Act’) and Rules made thereunder, Regulation 17(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in each case as amended from time to time, including any statutory modifications or re-enactments thereof and pursuant to the recommendation of the Nomination & Remuneration Committee and the Board of Directors of the Company, approval of the Members of the Company be and is hereby accorded for payment of commission not exceeding in the aggregate, 1% of the Company’s standalone net profit, computed in the manner laid down by Section 198 and other applicable provisions, if any, of the Act and Rules made thereunder, to non-executive directors of the Company or to some or any of them, in such proportion and at such frequency, as may be decided by the Board from time to time, for a period of five years commencing from April 1, 2024.

RESOLVED FURTHER THAT the above remuneration shall be in addition to fees payable to the nonexecutive directors for attending meetings of the Board or Committees as may be decided by the Board of Directors under Section 197(5) of the Act.

RESOLVED FURTHER THAT the Board of Directors (‘the Board’), which term shall be deemed to mean and include any Committee constituted by the Board be and is hereby authorised to take such steps as may be necessary to give effect to this Resolution.”

9. To consider and if thought fit, to pass with or without modification(s), the following Resolution as an Ordinary Resolution for ratifying the remuneration payable to Mr. S. D. Shenoy, Cost Auditor, for conducting cost audit for the year ending March 31, 2025: -

“ RESOLVED THAT pursuant to the provisions of Section 148 and other applicable provisions of the Companies Act, 2013 read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014 (including any amendments or re-enactments thereof), Mr. S. D. Shenoy (FCMA Membership No. 8318), Practising Cost Accountant, Cost Auditor, appointed by the Board of Directors (based on recommendation of the Audit Committee), to conduct audit of the cost records of the Company, as prescribed under the Companies (Cost Records and Audit) Rules, 2014, as amended from time to time, for the year ending March 31, 2025, be paid remuneration of ₹ 1,000,000/- (Rupees one million only) plus applicable taxes and out-of-pocket expenses.

RESOLVED FURTHER THAT the Board of Directors (‘the Board’), which term shall be deemed to mean and include any Committee constituted by the Board be and is hereby authorised to take such steps as may be necessary to give effect to this Resolution.”

Notice 03

Notes:

1. The Ministry of Corporate Affairs (‘MCA’) vide General Circular No. 09/2023 dated September 25, 2023 read with General Circular Nos. 20/2020 dated May 5, 2020, 02/2022 dated May 5, 2022 and 10/2022 dated December 28, 2022 (collectively ‘MCA Circulars’), has allowed companies to conduct the Annual General Meeting (‘AGM’) through VC/OAVM without the physical presence of Members at a common venue. In compliance with the Circulars, relevant provisions of the Companies Act, 2013 (‘Act’) and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), the AGM of the Company is being held through VC/OAVM at 4.00 p.m. (IST) on Friday, August 2, 2024. Members can attend and participate in the AGM through VC/OAVM.

2. As the AGM shall be conducted through VC/OAVM, the facility for appointment of Proxy by Members is not available and hence, Proxy Form, Attendance Slip and Route Map are not annexed to this Notice.

3. Members can join the AGM through VC/OAVM mode 30 minutes before and after the scheduled time of commencement of the meeting by following the procedure mentioned in this Notice. The facility of participation at the AGM through VC/OAVM will be made available for 1000 Members on first-comefirst-served basis. This will not include large shareholders (Members holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel, Chairpersons of the Audit/ Stakeholders’ Relationship Committees, Auditors, etc., who are allowed to attend the AGM without restriction of first come first served basis.

4. Members attending the AGM through VC/OAVM shall be reckoned for the purpose of quorum for the AGM as per Section 103 of the Act.

5. Pursuant to the provisions of Section 108 of the Act read with Rule 20 of the Companies (Management and Administration) Rules, 2014, Regulation 44 of the Listing Regulations, MCA Circulars (refer Sr. No. 1 above) and SEBI Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9, 2020, the Company will provide facility of remote e-Voting to its Members in respect of the business to be transacted at the AGM. For this purpose, the Company has engaged the services of National Securities Depository Limited (‘NSDL’) for facilitating voting through electronic means, as the authorised agency. The facility of casting votes by a Member using remote e-Voting system as also voting on the date of the AGM will be provided by NSDL. The process and manner for availing the said facility is explained in this Notice.

6. The voting rights of Members shall be proportionate to their shareholding of the paid-up equity share capital of the Company as on Friday, July 26, 2024.

7. Institutional Investors/Corporate members intending to authorise their representatives to participate and vote at the AGM are requested to e-mail to investorservices@lupin.com, a scanned copy (PDF/JPEG format) of the Board Resolution/Power of Attorney/Authority Letter authorising their representatives to attend and vote at the AGM, pursuant to Section 113 of the Act.

8. An Explanatory Statement, in compliance with the provisions of Section 102 of the Act and Rules made thereunder, Secretarial Standards on General Meetings (SS-2) and the Listing Regulations, wherever applicable, in respect of Special Business to be transacted at the AGM is annexed and forms part of this Notice. The Board of Directors has considered and decided to include Item Nos. 5 to 9 given above as Special Business at the AGM, since it is considered unavoidable.

9. The Record date shall be Tuesday, July 16, 2024, for determining the entitlement of Members for dividend for the year ended March 31, 2024, if declared.

Members holding shares in dematerialised form who acquire shares after despatch of the Notice and hold shares as of the cut-off date i.e., Friday, July 26, 2024, are requested to follow steps mentioned in this Notice under the heading ‘Access to NSDL e-Voting system’.

Members holding shares in physical form and non-individual shareholders, who acquire shares after despatch of this Notice and holding shares as of the cut-off date, are requested to obtain the login ID and password by sending request to evoting@nsdl.co.in.

10. Dividend for the year ended March 31, 2024, if declared, at the AGM, shall be paid to those Members within 30 days from the date of declaration, whose names appear: -

• a) as beneficial owners at the end of business hours on Tuesday, July 16, 2024, as per lists furnished by Central Depository Services (I) Limited and National Securities Depository Limited in respect of shares held in electronic form; and

• b) on the Register of Members of the Company as on Tuesday, July 16, 2024, after giving effect to valid transfers in respect of transfer requests lodged with Link Intime India Pvt. Ltd., Registrar and Share

04 LUPIN LIMITED | Integrated Report 2023-2024

Transfer Agent (‘RTA’) or the Company, on or before the close of business hours on Tuesday, July 16, 2024, in respect of shares held in physical form.

11. Members holding shares in dematerialised form are requested to intimate particulars of bank mandates, nominations, power of attorneys, e-mail addresses, contact numbers, change of addresses, etc., to their Depository Participant (‘DP’). Members holding shares in physical form are requested to intimate these details to the RTA.

In order to enable the Company to remit dividend electronically through National Automated Clearing House (‘NACH’), National Electronic Funds Transfer (‘NEFT’), etc., Members holding shares in physical form are requested to provide/update details of their bank accounts indicating name of the bank, branch, account number, nine-digit MICR code and IFSC code (as appearing on the cheque) along with a scanned copy of cheque/cancelled cheque to rnt.helpdesk@linkintime.co.in. Members holding shares in dematerialised form are requested to provide the said details to their DP.

In terms of the MCA Circulars, in case, the Company is unable to pay dividend to any Member by electronic mode, due to non-availability of details of the bank account, the Company shall despatch by post to such Member, the dividend payment through demand drafts/cheques.

The Income Tax Act, 1961, as amended by the Finance Act, 2020, mandates that dividends distributed by the Company after April 1, 2020, are taxable in the hands of the shareholders, details of which are explained in this Notice.

12. SEBI has mandated the submission of Permanent Account Number (‘PAN’) by every participant in the securities market to the RTA and linking PAN with Aadhar. Members holding shares in electronic form are requested to submit their PAN to their DP if not submitted earlier. Members holding shares in physical form are requested to submit their PAN to the RTA if not submitted earlier.

13. Members who have not encashed their dividend warrants for the year ended March 31, 2017, or any subsequent year(s), are requested to lodge their claims with the RTA at the earliest.

14. Dividends remaining unclaimed/unpaid for a period of seven years are required to be transferred to the ‘Investor Education and Protection Fund’ (‘IEPF’). Accordingly, unpaid dividends up to the year ended March 31, 2016, have already been transferred to IEPF.

15. ‘Register of Directors and Key Managerial Personnel and their shareholdings’ and ‘Register of Contracts or Arrangements in which Directors are interested’, maintained under Sections 170 and 189 of the Act, respectively and the Certificate from the Secretarial Auditor of the Company certifying that the stock option plans of the Company are being implemented in accordance with SEBI (Share Based Employee Benefits) Regulations, 2014, will be available electronically for inspection by Members.

16. All documents referred to in this Notice will also be available for electronic inspection by Members without payment of any fee from the date of circulation of Notice up to the date of AGM, i.e. Friday, August 2, 2024. Members seeking to inspect such documents are requested to send an e-mail to investorservices@lupin. com. Inspection shall be provided at a mutually convenient time.

17. Pursuant to MCA Circulars (refer Sr. No. 1 above) read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/ CIR/2023/167 dated October 07, 2023, Notice of the AGM along with the Explanatory Statement and Integrated Report for the year ended March 31, 2024, are being sent electronically to those Members whose e-mail addresses are registered with the DP/RTA and the same are also available on the websites of the Company (www.lupin.com), RTA (www.linkintime.co.in), NSDL (www.evoting.nsdl.com), BSE Limited (www.bseindia.com) and National Stock Exchange of India Limited (www.nseindia.com).

18. Members holding shares in single name are advised to avail of nomination facility. As per the provisions of Section 72 of the Act, the facility for making nomination is available for Members in respect of shares held by them. Members who have not yet registered their nomination are requested to register the same by submitting Form No. SH-13. Nomination forms can be downloaded from the website of the Company (www.lupin.com) or obtained from the RTA (www.linkintime.co.in). Members are requested to submit the said details to their DP in case shares are held in electronic form and to the RTA in case shares are held in physical form.

19. In case of joint holders attending the AGM, only such joint holder who is higher in the order of names will be entitled to vote.

Notice 05

20. Members are requested to: -

• a) Quote DP ID and Client ID/Ledger Folio numbers in all their correspondence;

• b) Approach the RTA for consolidation of multiple ledger folios into one; and

• c) Get shares transferred in joint names, if they are held in a single name and/or appoint a nominee, to avoid inconvenience.

21. NRI Members are requested to inform the RTA immediately of: -

• a) Particulars of their bank account maintained in India with complete name, branch, account type, account number and address of the bank with pin code number, if not furnished earlier; and

• b) Change in their residential status and address in India on their return to India for permanent settlement.

22. Members desirous of obtaining any information concerning accounts and operations of the Company are requested to address their communications to investorservices@lupin.com at least seven days before the date of the meeting. The same will be suitably replied to by the Company.

23. As shares of the Company are traded under compulsory demat, Members are requested to dematerialise their shareholding to avoid inconvenience.

By Order of the Board of Directors

R. V. SATAM Company Secretary (ACS -11973)

Mumbai, July 4, 2024

Registered Office:

Kalpataru Inspire, 3[rd] Floor, Off Western Express Highway, Santacruz (East), Mumbai - 400 055.

Corporate Identity Number:

L24100MH1983PLC029442 Tel: +91 22 6640 2323 Ext: 2402/2403 E-mail: investorservices@lupin.com Website: www.lupin.com

Registrar and Share Transfer Agent:

Link Intime India Pvt. Ltd. Unit: Lupin Limited C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai - 400 083 Tel: +91 81 0811 6767 Toll Free No.: 1800 1020 878 E-mail: rnt.helpdesk@linkintime.co.in

06 LUPIN LIMITED | Integrated Report 2023-2024

EXPLANATORY STATEMENT PURSUANT TO THE PROVISIONS OF SECTION 102 OF THE COMPANIES ACT, 2013.

ITEM NO. 4

Mr. Nilesh D. Gupta, 50, joined the Board of the Company on October 8, 2008. His brief profile, areas of expertise, qualifications, experience, remuneration, names of companies other than subsidiaries of Lupin in which he holds directorship and membership/chairmanship of Committees and number of Board meetings of the Company attended during the year are given in the Corporate Governance Report, which forms part of the Integrated Report. Mr. Gupta is not on the Board of any other listed company. Mr. Gupta holds 901064 fully paid-up equity shares of the face value of ₹ 2/- each in the Company.

Apart from Mrs. Manju D. Gupta and Ms. Vinita Gupta, no other Director of the Company is related to Mr. Nilesh D. Gupta.

Mr. Nilesh D. Gupta, Mrs. Manju D. Gupta and Ms. Vinita Gupta are interested in the said Resolution. None of the other Directors/Key Managerial Personnel or their relatives are interested in or concerned with the said Resolution.

This Explanatory Statement may also be regarded as a disclosure pursuant to Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Board recommends passing of the Resolution.

ITEM NO. 5

Mrs. Manju D. Gupta, 80, joined the Board of the Company on March 1, 1983. She was appointed as an Executive Director for a period of five years effective January 1, 2016 at the 33[rd] AGM held on July 23, 2015. Mrs. Gupta resigned from the executive role in the Company effective August 11, 2017. Thereafter, she was appointed as Non-Executive Chairman of the Company for a period of two years effective August 11, 2017. At its meeting held on February 6, 2019, the Board of Directors approved the continuation of the appointment of Mrs. Gupta, as Non-Executive Director of the Company, effective April 1, 2019, on the existing terms and conditions of her appointment. Vide postal ballot dated March 29, 2019, the Members, in terms of Regulation 17(1A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), approved the continuation of directorship effective April 1, 2019, of Mrs. Gupta, upon attaining the age of 75 years, on existing terms and conditions of her appointment. Mrs. Gupta is not liable to retire by rotation.

Mrs. Manju D. Gupta is a Bachelor of Arts. She has intimate knowledge of the working of the Company and has been a Member of the Board since inception and a pillar of strength and inspiration for the Company. Mrs. Gupta is the Chairman of the Corporate Social Responsibility (‘CSR’) Committee which monitors the implementation of the CSR policy and recommends and approves the amount of expenditure incurred by the Company on CSR activities. She also chairs the Share Allotment Committee constituted by the Board for approving allotment of shares to employees of the Company and those of its subsidiaries upon exercise of stock options granted to them under various Stock Option Plans formulated by the Company. Her wide business experience, expertise, moderating influence and quiet demeanor has been an asset to the Company. Mrs. Gupta has been the sounding board for all key decisions made at Lupin.

Regulation 17(1D) of the Listing Regulations mandates with effect from April 1, 2024, the continuation of a director serving on the board of directors shall be subject to the approval by Members in a general meeting at least once in every five years from the date of their appointment/re-appointment. Continuation of the director on the board of directors as on March 31, 2024, without the approval of Members for the last five years or more shall be subject to the approval of Members in the first general meeting to be held after March 31, 2024.

In addition to payment of sitting fees for attending meetings of the Board/Committee, Mrs. Manju D. Gupta is entitled to remuneration by way of commission as payable to non-executive directors of the Company as may be decided by the Board of Directors. She is not entitled for stock options pursuant to Employees Stock Options Schemes of the Company. Remuneration paid to Mrs. Gupta during the year ended March 31, 2024, details of number of Board meetings attended by her during the year are given in the Corporate Governance Report.

Considering Mrs. Manju D. Gupta’s rich and diverse experience, significant contributions and wide knowledge, it would be in the best interest of the Company, to continue to avail of her services by continuing her as nonexecutive director of the Company.

Mrs. Manju D. Gupta is also a director of Lupin Diagnostics Limited, a wholly owned subsidiary of the Company. She is not a member/chairman of any committee of any other Board.

Mrs. Manju D. Gupta’s areas of expertise, skills & capabilities, remuneration and number of Board meetings of the Company attended during the year are given in the Corporate Governance Report, which forms part

Notice 07

of the Integrated Report.

Mrs. Manju D. Gupta holds 3871162 fully paid-up equity shares of the face value of ₹ 2/- each in the Company. Apart from Ms. Vinita Gupta and Mr. Nilesh D. Gupta, no other Director of the Company is related to Mrs. Manju D. Gupta.

Mrs. Manju D. Gupta, Ms. Vinita Gupta and Mr. Nilesh D. Gupta are interested in the said Resolution. None of the other Directors/Key Managerial Personnel or their relatives are interested in or concerned with the said Resolution.

This Explanatory Statement may also be regarded as a disclosure pursuant to Regulation 36(3) of the Listing Regulations.

The Nomination and Remuneration Committee recommended to the Board, the continuation of directorship of Mrs. Manju D. Gupta.

The Board recommends passing of the Resolution.

ITEM NO. 6

As recommended by the Nomination and Remuneration Committee, the Board of Directors, at its meeting held on May 6, 2024, appointed Mr. Jeffrey Kindler, 69, as an Additional Director and designated him as an Independent Director of the Company, for a period of five years effective May 6, 2024, i.e., up to May 5, 2029. Mr. Kindler was appointed as Member of the Risk Management Committee and Strategy Committee of the Company effective May 6, 2024. He was also appointed director of Lupin Inc., USA, wholly owned subsidiary of the Company, effective May 9, 2024.

Mr. Kindler completed a Bachelor of Arts degree (Summa cum Laude) from Tufts University, USA and a Juris Doctor degree (Magna cum Laude) from Harvard Law School, USA. He served as a law clerk to Justice William J. Brennan, Jr. of the United States Supreme Court.

Mr. Kindler is an experienced healthcare executive, investor and advisor. He brings over four decades of business experience and has held leadership positions at some of the world’s most recognized companies including Pfizer, where he served as Chairman & Chief Executive Officer, as well as McDonald’s Corporation and General Electric Company. Before that, Mr. Kindler was a partner at the law firm of Williams & Connolly. He is currently CEO of Centrexion Therapeutics, a privately held biotechnology company, and a Senior Advisor to Blackstone. Mr. Kindler has a deep understanding of multinational corporate matters including regulations, litigations, compliance, crisis management, brand, franchise management, executive leadership and mergers & acquisitions. He is based out of Miami, Florida, USA.

Mr. Kindler shall be paid sitting fees for attending meetings of the Board and its Committees, within the limits prescribed by the Companies Act, 2013 (‘Act’) and Rules made thereunder. He shall also be paid commission as may be decided by the Board, within the limits prescribed by the Act and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’).

As Mr. Kindler is being appointed for his first term as an Independent Director on the Board, details of his last drawn remuneration are not applicable. After his joining the Board of the Company, one Board Meeting was held on June 11, 2024 which was attended by Mr. Kindler.

Particulars of other directorships, membership/chairmanship of committees of other Boards of Mr. Kindler are given in the Corporate Governance Report, which forms part of the Integrated Report. He is not on the Board of any other listed company in India.

The Company has received the following documents from Mr. Kindler: -

• Consent letter in Form DIR-2 pursuant to the provisions of Section 152(5) of the Act read with Rule 8 of Companies (Appointment and Qualification of Directors) Rules, 2014;

• Certificate in Form DIR-8 pursuant to the provisions of Sections 164(1) and (2) of the Act, read with Rule 14(1) of Companies (Appointment and Qualification of Directors) Rules, 2014, certifying that he is not disqualified from acting as director of the Company;

• Declaration pursuant to the provisions of Section 149(7) of the Act, confirming that he meets the criteria of independence provided by Section 149(6) of the Act;

• Declaration under Rule 6(1)(b) of the Companies (Appointment and Qualification of Directors) Rules, 2014 as regards registration with the Independent Directors databank maintained by the Indian Institute of Corporate Affairs, Ministry of Corporate Affairs, Government of India;

• Declaration pursuant to Regulation 25(8) of the Listing Regulations confirming that he meets the criteria

08 LUPIN LIMITED | Integrated Report 2023-2024

of independence provided by Regulation 16(1)(b) of the Listing Regulations and is not aware of any circumstance or situation which exists or may be reasonably anticipated that could impair or impact his ability to discharge duties as an Independent Director of the Company;

• Certificate confirming compliance with Code of Conduct adopted by the Board of Directors and Code for Independent Directors specified by Schedule IV of the Act; and

• Disclosure of Interest in Form MBP-1 pursuant to the provisions of Section 184(1) of the Act and Rule 9(1) of the Companies (Meetings of Board and its Powers) Rules, 2014.

The Board is of the view that Mr. Kindler possesses appropriate skills, expertise and competencies in areas such as Corporate Governance, Leadership & General Management, Healthcare/Pharma, Science & Technology, Risk Management, Environment Social and Governance, Information Technology and Mergers & Acquisition and has wide experience which would benefit the Company. In the opinion of the Board, Mr. Kindler fulfills the conditions specified in the Act and Rules made thereunder and the Listing Regulations and is independent of the management.

Mr. Kindler has not been debarred from holding office of a Director by virtue of any order passed by the SEBI or any other such authority.

A copy of the letter of appointment of Mr. Kindler setting out the terms and conditions of his appointment is hosted on the Company’s website www.lupin.com and is open for inspection by Members at the Registered Office of the Company during normal business hours on working days.

Mr. Kindler does not hold any shares in the Company.

Pursuant to the provisions of Sections 149, 150, 152 read with Schedule IV and other applicable provisions of the Act and Rules made thereunder and Regulation 17 of the Listing Regulations, it is proposed to appoint Mr. Kindler as an Independent Director, for a period of five years, i.e. up to May 5, 2029 and he shall not be subject to retirement by rotation.

Mr. Kindler is interested in the said Resolution. No other Director/Key Managerial Personnel of the Company and their relatives are interested in or concerned with the said Resolution. This Explanatory Statement may also be regarded as a disclosure pursuant to Regulation 36(3) of the Listing Regulations.

The Board recommends passing of the said Resolution.

ITEM NO. 7

As recommended by the Nomination and Remuneration Committee, the Board of Directors, at its meeting held on May 6, 2024, appointed Mr. Alfonso Zulueta, 61, as an Additional Director and designated him as an Independent Director of the Company, for a period of five years effective May 6, 2024, i.e., up to May 5, 2029. Mr. Zulueta was appointed as Member of the Strategy Committee of the Company effective May 6, 2024. He was also appointed director of Lupin Inc., USA, wholly owned subsidiary of the Company, effective May 9, 2024.

Mr. Zulueta completed an Economics undergraduate degree from De LA Salle University, Manila, where he was conferred the 2023 Outstanding Alumnus Award. He received MBA degree in Marketing/Finance from University of Virginia, USA.

Mr. Zulueta spent over three decades in various roles of increasing responsibility with Eli Lilly and Company, a global pharmaceutical company, including as Vice President of Global Marketing, President of Global Oncology and Critical Care Products and most recently, as President of International responsible for all geographies outside the United States and Canada. He also served as a corporate officer and member of Eli Lilly and Company’s Executive Committee. Mr. Zulueta previously served as member of the board of the European Federation of Pharmaceutical Industries and Associations and the U.S.-Japan Business Council. He is based out of Sunny Isles, Florida, USA.

Mr. Zulueta shall be paid sitting fees for attending meetings of the Board and its Committees, within the limits prescribed by the Companies Act, 2013 (‘Act’) and Rules made thereunder. He shall also be paid commission as may be decided by the Board, within the limits prescribed by the Act and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’).

As Mr. Zulueta is being appointed for his first term as an Independent Director on the Board, details of his last drawn remuneration are not applicable. After attending the Board meeting held on May 6, 2024, at which he joined the Board, one Board Meeting was held on June 11, 2024 which was attended by Mr. Zulueta.

Particulars of other directorships, membership/chairmanship of committees of other Boards of Mr. Zulueta are given in the Corporate Governance Report, which forms part of the Integrated Report. He is not on the Board of any other listed company in India.

Notice 09

The Company has received the following documents from Mr. Zulueta: -

• Consent letter in Form DIR-2 pursuant to the provisions of Section 152(5) of the Act read with Rule 8 of Companies (Appointment and Qualification of Directors) Rules, 2014;

• Certificate in Form DIR-8 pursuant to the provisions of Sections 164(1) and (2) of the Act, read with Rule 14(1) of Companies (Appointment and Qualification of Directors) Rules, 2014, certifying that he is not disqualified from acting as director of the Company;

• Declaration pursuant to the provisions of Section 149(7) of the Act, confirming that he meets the criteria of independence provided by Section 149(6) of the Act;

• Declaration under Rule 6(1)(b) of the Companies (Appointment and Qualification of Directors) Rules, 2014 as regards registration with the Independent Directors databank maintained by the Indian Institute of Corporate Affairs, Ministry of Corporate Affairs, Government of India;

• Declaration pursuant to Regulation 25(8) of the Listing Regulations confirming that he meets the criteria of independence provided by Regulation 16(1)(b) of the Listing Regulations and is not aware of any circumstance or situation which exists or may be reasonably anticipated that could impair or impact his ability to discharge duties as an Independent Director of the Company;

• Certificate confirming compliance with Code of Conduct adopted by the Board of Directors and Code for Independent Directors specified by Schedule IV of the Act; and

• Disclosure of Interest in Form MBP-1 pursuant to the provisions of Section 184(1) of the Act and Rule 9(1) of the Companies (Meetings of Board and its Powers) Rules, 2014.

The Board is of the view that Mr. Zulueta possesses appropriate skills, expertise and competencies in areas such as Corporate Governance, Leadership & General Management, Healthcare/Pharma, Science & Technology, Risk Management, Environment Social and Governance, Information Technology and Mergers & Acquisition and has wide experience which would benefit the Company. In the opinion of the Board, Mr. Zulueta fulfills the conditions specified in the Act and Rules made thereunder and the Listing Regulations and is independent of the management.

Mr. Zulueta has not been debarred from holding office of a Director by virtue of any order passed by the SEBI or any other such authority.

A copy of the letter of appointment of Mr. Zulueta setting out the terms and conditions of his appointment is hosted on the Company’s website www.lupin.com and are open for inspection by Members at the Registered Office of the Company during normal business hours on working days.

Mr. Zulueta does not hold any shares in the Company.

Pursuant to the provisions of Sections 149, 150, 152 read with Schedule IV and other applicable provisions of the Act and Rules made thereunder and Regulation 17 of the Listing Regulations, it is proposed to appoint Mr. Zulueta as an Independent Director, for a period of five years, i.e. up to May 5, 2029 and he shall not be subject to retirement by rotation.

Mr. Zulueta is interested in the said Resolution. No other Director/Key Managerial Personnel of the Company and their relatives are interested in or concerned with the said Resolution. This Explanatory Statement may also be regarded as a disclosure pursuant to Regulation 36(3) of the Listing Regulations.

The Board recommends passing of the said Resolution.

10 LUPIN LIMITED | Integrated Report 2023-2024

ITEM NO. 8

Section 197 of the Companies Act, 2013 (‘Act’), permits payment of commission to non-executive directors up to 1% of the net profit (standalone) of the Company, computed in accordance with the provisions of Section 198 of the Act.

In appreciation of the valuable advice, support and guidance rendered by non-executive directors, the Board, at its meeting held on May 28, 2020, approved the payment of commission not exceeding in the aggregate 0.5% p.a. of the net profit of the Company, computed in the manner laid down by Sections 197 and 198 of the Act for a period of five years commencing from April 1, 2020, which was approved by Members at the 38[th] Annual General Meeting held on August 12, 2020.

The Company continues to greatly benefit from the invaluable inputs provided by non-executive directors, who have vast experience, expertise and wisdom in diverse fields of business. They are members of various Committees constituted by the Board and offer expert advice and guidance. They are also on the boards of material subsidiaries of the Company.

With enhanced corporate governance norms coupled with size and global operations of the Company, the role and responsibilities of non-executive directors, have become more onerous, requiring greater time commitments, attention and a higher level of oversight. With the induction of new Independent directors, the number of non-executive directors in the Board composition has significantly increased.

As recommended by the Nomination and Remuneration Committee of the Company and approved by the Board, it is proposed to pay commission to non-executive directors up to 1% of the net profit (standalone) of the Company, in conformity with Sections 197 and 198 of the Act, for a period of five years commencing April 1, 2024.

Your approval is being sought pursuant to Regulation 17(6)(a) and (b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

All non-executive directors and Ms. Vinita Gupta and Mr. Nilesh D. Gupta (who are related to Mrs. Manju D. Gupta), are interested in the said Resolution. None of the other Directors/Key Managerial Personnel or their relatives are interested in or concerned with the said Resolution.

The Board recommends passing of the Resolution.

ITEM NO. 9

The Board of Directors, on the recommendation of the Audit Committee, approved the appointment and remuneration of Mr. S. D. Shenoy (FCMA Membership No. 8318), Practising Cost Accountant, Cost Auditor, to conduct audit of the cost records of the Company for the year ending March 31, 2025.

Mr. Shenoy is a cost accountant as defined in Section 2(1)(b) of the Cost and Works Accountants Act, 1959, holding a valid certificate of practice under Section 6(1) of the said Act. He has not been disqualified to act as cost auditor pursuant to the provisions of Section 141 read with Section 148 of the Companies Act, 2013 (‘Act’) and his appointment, is in accordance with the limits specified by Section 141(3)(g) read with Section 148 of the Act. Mr. Shenoy is independent and maintains an arm’s length relationship with the Company; and no orders or proceedings are pending against him relating to professional matters of conduct before the Institute of Cost Accountants of India or any court or competent authority.

In accordance with the provisions of Section 148 of the Act read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014, the remuneration of ₹ 1,000,000/- (Rupees one million only) plus applicable taxes and out-of-pocket expenses payable to the Cost Auditor as approved by the Board of Directors on the recommendation of the Audit Committee, needs to be ratified by Members. Thus, consent of Members is being sought for ratifying the remuneration payable to Mr. Shenoy for year ending March 31, 2025.

Notice

11

None of the Directors/Key Managerial Personnel or their relatives are interested in or concerned with the said Resolution.

The Board recommends passing of the Resolution.

By Order of the Board of Directors

R. V. SATAM Company Secretary (ACS -11973)

Mumbai, July 4, 2024

Registered Office:

Kalpataru Inspire, 3[rd] Floor, Off Western Express Highway, Santacruz (East), Mumbai - 400 055.

Corporate Identity Number:

L24100MH1983PLC029442 Tel: +91 22 6640 2323 Ext: 2402/2403 E-mail: investorservices@lupin.com Website: www.lupin.com

Registrar and Share Transfer Agent:

Link Intime India Pvt. Ltd. Unit: Lupin Limited C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai - 400 083. Tel: +91 81 0811 6767 Toll Free No.: 1800 1020 878 E-mail: rnt.helpdesk@linkintime.co.in

12 LUPIN LIMITED | Integrated Report 2023-2024

INSTRUCTIONS FOR REMOTE E-VOTING

- How do I vote electronically and join virtual meeting using NSDL e Voting system?

The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below:

Step 1: Access to NSDL e-Voting system

A) Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in demat mode

Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9, 2020, on e-Voting facility, post June 9, 2021, Individual shareholders holding securities in demat mode can vote through their demat account maintained with Depositories and Depository Participants.

Shareholders are advised to update their mobile number and e-mail in their demat accounts to access e-Voting facility.

Login method for Individual shareholders holding securities in demat mode/physical mode is given below: -

Type of Shareholders

Login Method

Individual Shareholders holding securities in demat mode with NSDL

•If you are already a registered user for NSDL IDeAS facility, please visit the e-Services website of NSDL. Open web browser by typing the URL: https://eservices.nsdl.com either on a Personal Computer or mobile. Once the home page of e-Services is launched, click on the ‘Beneficial Owner’ icon under ‘Login’ which is available under ‘IDeAS’ section. A new screen will open. Please enter your User ID and Password. • After successful authentication, you will see ‘e-Voting services’. Click on ‘Access to e-Voting’ under ‘e-Voting services’ and you will see the ‘e-Voting page’. Click on Company name or e-Voting service provider i.e., NSDL and you will be re-directed to e-Voting website of NSDL for casting your vote during the remote e-Voting period or for joining the virtual meeting and voting during the meeting. •If the User is not registered for IDeAS e-Services, option to register is available at https://eservices. nsdl.com. Select ‘Register Online for IDeAS’ portal or click at https://eservices.nsdl.com/SecureWeb/ IdeasDirectReg.jsp. • Visit the e-Voting website of NSDL. Open web browser by typing the URL: https://www.evoting.nsdl. com/ either on a Personal Computer or mobile. Once the home page of e-Voting system is launched, click on the icon ‘Login’ which is available under ‘Shareholder/Member’ section. A new screen will open. Please enter your User ID i.e., your sixteen-digit demat account number (held with NSDL), Password/OTP and the Verification Code as shown on the screen. After successful authentication, you will be redirected to the NSDL site wherein you can see e-Voting page. Click on Company name or e-Voting service provider i.e., NSDL and you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or for joining the virtual meeting and voting during the meeting. •Shareholders/Members can also download NSDL Mobile App “NSDL Speede”facility by scanning the QR code mentioned below for seamless voting experience.

Notice 13

Individual Shareholders holding securities in demat mode with CDSL

•Existing Users, who have opted for Easi/Easiest, can login through their User ID and Password. Option will be made available to reach e-Voting page without any further authentication. The Users to login to Easi/Easiest are requested to visit www.cdslindia.com and click on New System Myeasi Tab. • After successful login on Easi/Easiest, the User will be able to see the E Voting Menu. The Menu will have links of e-Voting service provider i.e. NSDL. Click on NSDL to cast your vote. •If the User is not registered on Easi/Easiest, option to register is available at www.cdslindia.com. • Alternatively, Users can directly access e-Voting page by providing Demat Account Number and PAN from the link www.cdslindia.com home page. The system will authenticate the User by sending OTP on registered Mobile and E-mail as recorded in the Demat Account. After successful authentication, User will be provided links for the respective ESP i.e. NSDL where the e-Voting is in progress.

Individual Shareholders (holding securities in demat mode) and login through their depository participants

• Users can also login using the login credentials of their Demat Account through their Depository Participant registered with NSDL/CDSL for e-Voting facility. • When you login, you will see e-Voting option. Once you click on the same, you will be redirected to NSDL/CDSL sites after successful authentication, wherein you can see e-Voting feature. Click on Company name or e-Voting service provider i.e. NSDL and you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining the virtual meeting and voting during the meeting.

B) Login Method for e-Voting and joining virtual meeting for shareholders other than Individual shareholders holding securities in demat mode and shareholders holding securities in physical mode. How to Log-in to NSDL e-Voting website?

1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting. nsdl.com/ either on a Personal Computer or on a mobile.

2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/Member’ section.

3. A new screen will open. You will have to enter your User ID, your Password/OTP and a Verification Code as shown on the screen.

Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices. nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.

4. Your User ID details are given below: -

Manner of holding shares i.e. Demat (NSDL or CDSL) or Physical	Your User ID is:
a)For Members who hold shares in demat account with NSDL.	8 Character DP ID followed by 8 Digit Client ID For example if your DP ID is IN300 and Client ID is 12 then your user ID is IN30012**.
b)For Members who hold shares in demat account with CDSL.	16 Digit Beneficiary ID For example if your Beneficiary ID is 12** then your user ID is 12**
c) For Members holding shares in Physical Form.	EVEN Number followed by Folio Number registered with the company For example if folio number is 001 and EVEN is 101456 then user ID is 101456001

5. Password details for shareholders other than Individual shareholders are given below: -

• a) If you are already registered for e-Voting, then you can use your existing password to login and cast your vote.

14 LUPIN LIMITED | Integrated Report 2023-2024

• b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’ which was communicated to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ and the system will force you to change your password.

• c) How to retrieve your initial password?

  • i) If your e-mail ID is registered in your demat account or with the company, your ‘initial password’ is communicated to you on your e-mail ID. Trace the e-mail sent to you from NSDL from your mailbox. Open the e-mail and open the attachment i.e. a pdf file. Open the pdf file. The password to open the pdf file is your 8 digit client ID for NSDL account, last 8 digits of client ID for CDSL account or folio number for shares held in physical form. The pdf file contains your ‘User ID’ and your ‘initial password’.

  • ii) If your e-mail ID is not registered, please follow steps mentioned below in process for those shareholders whose e-mail ids are not registered.

6. If you are unable to retrieve or have not received the “Initial password” or have forgotten your password: -

• a) Click on “Forgot User Details/Password?” (If you are holding shares in your demat account with

  • NSDL or CDSL) option available on www.evoting.nsdl.com.

• b) “Physical User Reset Password?” (If you are holding shares in physical mode) option available on www.evoting.nsdl.com.

• c) If you are still unable to get the password by aforesaid two options, you can send a request at evoting@nsdl.com mentioning your demat account number/folio number, your PAN, your name and your registered address etc.

• d) Members can also use the OTP (One Time Password) based login for casting the votes on the e-Voting system of NSDL.

7. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.

8. Now, you will have to click on “Login” button.

9. After you click on the “Login” button, Home page of e-Voting will open.

Helpdesk for Individual Shareholders holding securities in demat mode: -

In case Shareholders/Members holding securities in demat mode have technical issues related to login through Depository i.e. NSDL/CDSL, they may contact the respective helpdesk given below: -

Login type Helpdesk details Individual Shareholders Members facing technical issue in login can contact NSDL helpdesk by sending a request at holding securities in evoting@nsdl.com or call at toll free no. 002 - 4886 7000. demat mode with NSDL Individual Shareholders Members facing technical issue in login can contact CDSL helpdesk by sending a request at holding securities in helpdesk.evoting@cdslindia.com or contact at toll free no. 1800 22 55 33. demat mode with CDSL

Step 2: Cast your vote electronically and join General Meeting on NSDL e-Voting system.

How to cast your vote electronically and join General Meeting on NSDL e-Voting system?

1. After successful login as mentioned above, you will be able to see all the companies “EVEN” in which you are holding shares and whose voting cycle and General Meeting is in active status.

2. Select “EVEN” of company for which you wish to cast your vote during the remote e-Voting period and casting your vote during the General Meeting. For joining virtual meeting, you need to click on “VC/OAVM” link placed under “Join Meeting”.

3. Now you are ready for e-Voting as the Voting page opens.

4. Cast your vote by selecting appropriate options i.e., assent or dissent, verify/modify the number of shares for which you wish to cast your vote and click on “Submit” and also “Confirm” when prompted.

5. Upon confirmation, the message “Vote cast successfully” will be displayed.

6. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.

7. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

Notice 15

General Guidelines for shareholders

1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG Format) of the relevant Board Resolution/Power of Attorney/Authority letter etc., with attested specimen signature of the duly authorised signatory(ies) who are authorised to vote, by e-mail to investorservices@lupin.com, with a copy marked to evoting@nsdl.com. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) can also upload their Board Resolution/Power of Attorney/Authority Letter etc. by clicking on “Upload Board Resolution/Authority Letter” displayed under “e-Voting” tab in their login.

2. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the correct password. In such an event, you will need to go through the “Forgot User Details/Password?” or “Physical User Reset Password?” option available on www.evoting.nsdl.com to reset the password.

3. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting user manual for Shareholders available at the download section of www.evoting.nsdl.com or call on toll free no.: 022 – 4886 7000 or send a request to Ms. Pallavi Mhatre, Senior Manager at evoting@ nsdl.com.

Process for those shareholders whose e-mail ids are not registered with the depositories for procuring User ID and Password and registration of e-mail ids for e-voting for the resolutions set out in this notice: -

1. In case shares are held in physical mode please provide Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self-attested scanned copy of PAN card), AADHAR (selfattested scanned copy of Aadhar Card) by e-mail to investorservices@lupin.com .

2. In case shares are held in demat mode, please provide DPID-CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name, client master or copy of Consolidated Account statement, PAN (self-attested scanned copy of PAN card), AADHAR (self-attested scanned copy of Aadhar Card) to investorservices@lupin.com . If you are an Individual shareholder holding securities in demat mode, you are requested to refer to the login -

method explained at step 1 (A) i.e. Login method for e Voting and joining virtual meeting for Individual shareholders holding securities in demat mode.

3. Alternatively, shareholders/members may send a request to evoting@nsdl.com for procuring user id and password for e-voting by providing above mentioned documents.

4. In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are required to update - -

their mobile number and e mail ID correctly in their demat account in order to access e Voting facility.

GENERAL INSTRUCTIONS

1. The voting rights of members shall be in proportion to their shares of the paid-up equity share capital of the Company as on the cut-off date of Friday, July 26, 2024.

2. The facility for e-voting shall also be available at the AGM. Members who have already cast their vote by remote e-voting prior to the AGM may also attend the AGM but shall not be entitled to cast their vote at the AGM. Only those Members who attend the AGM and have not cast their votes through remote e-voting and are otherwise not barred from doing so will be allowed to vote through the e-voting facility available at the AGM.

3. Any person, who acquires shares of the Company and becomes its member after sending Notice of the AGM and holds shares as on the cut-off date for voting i.e. Friday, July 26, 2024, may obtain the login ID and password by following the instructions of Remote e-voting.

4. Ms. Neena Bhatia, Practising Company Secretary (FCS No. 9492 CP. No. 2661) has been appointed as the Scrutinizer to scrutinize the remote e-voting and ensure that the voting process at the AGM is conducted in a fair and transparent manner.

5. The Scrutinizer shall after the conclusion of voting at the AGM, unblock the votes cast through remote e-voting in the presence of at least two witnesses not in the employment of the Company and shall make, not later than forty eight hours of the conclusion of the AGM, a consolidated Scrutinizer’s Report of the total votes cast in favour/against, if any, to the Chairperson or a person authorized in writing, who shall countersign the same and declare the result of the voting forthwith.

16 LUPIN LIMITED | Integrated Report 2023-2024

6. The Results declared along with the Report of the Scrutinizer shall be placed on the website of the Company www.lupin.com and on the website of our Registrar and Transfer Agent viz. Link Intime India Pvt. Ltd. i.e., https://instavote.linkintime.co.in, NSDL i.e. www.evoting.nsdl.com and shall also be forwarded to BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).

Notice 17

INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE FORTY-SECOND AGM THROUGH VC/OAVM ARE AS UNDER: -

1. Member will be provided with a facility to attend the AGM through VC/OAVM through the NSDL e-Voting system. Members may access by following the steps mentioned above for Access to NSDL e-Voting system. After successful login, you can see link of “VC/OAVM” placed under “Join meeting” menu against company name. You are requested to click on VC/OAVM link placed under Join Meeting menu. The link for VC/OAVM will be available in Shareholder/Member login where the EVEN of Company will be displayed. Please note that the members who do not have the User ID and Password for e-Voting or have forgotten the User ID and Password may retrieve the same by following the remote e-Voting instructions mentioned in the notice to avoid last minute rush.

2. Members are encouraged to join the Meeting through Tablets/Laptops connected through broadband for better experience.

3. Further Members will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.

4. Please note that Participants connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use stable Wi-Fi or LAN connection to mitigate any kind of aforesaid glitches.

5. Shareholders who would like to express their views/have questions may send their questions in advance mentioning their name demat account number/folio number, e-mail id, mobile number at agm2024speakers@lupin.com. The same will be replied by the company suitably.

- Instructions for Shareholders/Members to Speak during the AGM through NSDL e Voting system:

1. Shareholders who would like to speak during the meeting must register their request mentioning their name, demat account number/folio number, e-mail id, mobile number at agm2024speakers@lupin. com, atleast 48 hours prior to the date of AGM i.e. on or before 4.00 p.m. (IST) on Wednesday, July 31, 2024.

2. Speakers will only be allowed to express their views/ask questions on first come first served basis during the meeting. The Company reserves the right to restrict the number of speakers depending on the availability of time for the AGM.

3. Shareholders who would like to ask questions, shall send the same in advance mentioning their name, demat account number/folio number, e-mail, mobile number at agm2024speakers@lupin.com, atleast 48 hours prior to the date of AGM i.e. on or before 4.00 p.m. (IST) on Wednesday, July 31, 2024. The same will be replied by the Company suitably.

4. Shareholders will get confirmation on first come first served basis depending upon the provision made by the Company.

5. Shareholders will receive ‘speaking serial number’ once they mark attendance for the meeting. Shareholders are requested to speak only when Moderator of the meeting will announce the name and serial number for speaking.

6. Please remember ‘speaking serial number’ and start your conversation with panelist by switching on audio of your device.

7. Those shareholders who have registered themselves as a speaker will only be allowed to express their views/ask questions during the meeting.

18 LUPIN LIMITED | Integrated Report 2023-2024

INSTRUCTIONS ON TAX DEDUCTIBLE AT SOURCE ON DIVIDEND

In accordance with the provisions of the Income Tax Act, 1961 and Rules framed thereunder, as amended by the Finance Act, 2020 (‘Act’), dividend income is taxable in the hands of the shareholders. The Company is required to deduct tax at source (‘TDS’) at rates applicable to each category of shareholders. The rates of TDS for various categories of shareholders and the required documents are provided below: -

This communication provides details of the applicable TDS/withholding tax provisions under the Act, for Resident and Non-Resident shareholder categories and the required documents as mentioned under: -

A. Resident Shareholders:

1. Where PAN of the shareholder is available with the Company and is valid as per the provisions of the Act: -

• (i) In accordance with Section 194 of the Act, tax will be deducted @ 10% if the amount of dividend payable during FY 2024-25 exceeds Rs. 5,000/-; and

No tax will be deducted on dividend payable in cases where shareholder provides duly completed and signed Form 15G (applicable to an individual below the age of 60 years) or Form 15H (applicable to an individual aged 60 years or above), provided that all the eligibility conditions are met and documents are received not later than 5.00 p.m. (IST) on Tuesday, July 16, 2024, by Link Intime, RTA of the Company via link https://liiplweb.linkintime.co.in/formsreg/submission-ofform-15g-15h.html. Links of Form 15G and Form 15H are given at the end of this communication as Annexure I and Annexure II .

2. Tax will be deducted @ 20% on the amount of dividend payable, where: -

• (i) Shareholders have not furnished valid PAN; or

• (ii) Individual shareholders have not linked PAN with their Aadhaar, rendering the PAN invalid or where incorrect PAN details have been furnished by the shareholders, as a result, the Company is liable to deduct TDS at a higher rate as per the provisions of Section 206AA of the Act; or

• (iii) As per provision of Section 206AB of the Act, the shareholder has not filed Income Tax returns for FY 2022-23 and the aggregate of TDS and tax collected at source is Rs. 50,000 or more in the said year (‘Specified Persons’).

Where a shareholder furnishes a valid lower/nil tax deduction certificate obtained under Section 197 of the Act from the Income Tax authorities, TDS will be deducted as per the rate prescribed in such certificate.

3. Insurance companies, mutual funds registered under Section 10(23D) of the Act, Alternate Investment Funds established/incorporated in India, whose income is exempt under Section 10(23FBA) of the Act and the Governments (Central/State) shall provide declaration in the link given at the end of this communication as Annexure III .

4. Transferring credit of tax deducted at source to other person: As per Rule 37BA of the Income-Tax Rules, 1962, in case where the dividend is received in the hands of one person but is assessable in the hands of other person, the tax may be deducted in the name of such other person if the firstmentioned person provides a declaration containing specified information of the other person. Link of the declaration is given at the end of this communication as Annexure IV .

B. Non-Resident Shareholders:

Tax will be deducted @ 20% (plus applicable surcharge and cess) as per the Act or rate prescribed under Double Tax Avoidance Agreement (‘DTAA’) between India and the country of tax residence of shareholders, whichever is lower, on the amount of dividend payable to non-resident shareholders [including Foreign Institutional Investors (‘FIIs’) and Foreign Portfolio Investors (‘FPIs’)].

To avail DTAA benefits, non-resident shareholders are required to furnish the following documents not later than 5.00 p.m. (IST) on Tuesday, July 16, 2024 , to Link Intime, RTA of the Company via link https:// liiplweb.linkintime.co.in/formsreg/submission-of-form-15g-15h.html :

• a) Self-attested copy of PAN , if allotted by the Indian income tax authorities.

• b) Tax Residency Certificate (‘TRC’) issued by the tax/competent authority of the country of residency, evidencing and certifying tax residency status in that country during FY 2024-25 or calendar year 2024. In case, the TRC is in a language other than English, a duly notarized and apostilled copy thereof, translated in English language would have to be provided;

Notice 19

• c) Electronic Form 10F - Required only if details such as Name, Status, Tax Identification Number, Validity Period of TRC and Address of non-resident are not specifically mentioned on TRC. (In case of USA resident shareholders, if TRC along with cover letter is available then electronic Form 10F is not required). Non-Resident can file Electronic Form 10F on Indian Income Tax website – www.incometax. gov.in ; refer “Steps for filing Electronic Form 10F” in Annexure V.

• d) Self-declaration confirming not having a Permanent Establishment in India and eligibility to Tax Treaty benefit for FY 2024-25 or calendar year 2024. Link of the declaration is given at the end of this communication as Annexure VI.

Application of Tax Treaty rate shall depend upon the completeness of the documents submitted by the non-resident shareholder and are in accordance with the provisions of the Act.

Where a shareholder furnishes a valid lower/nil withholding tax certificate obtained under Section 197 of the Act from the Income Tax authorities, withholding tax will be applied as per the rate prescribed in such certificate.

C. For all Shareholders:

Shareholders holding shares under multiple accounts under different status/category and single PAN, are requested to note that higher of the tax rate as applicable to the status/category in which shares are held under a PAN, will be considered on their entire holding in different accounts.

Only scanned legible copies of the aforementioned documents will be accepted by the Company as per the procedure laid down. Duly completed and signed documents are required to be submitted to Link Intime by uploading the documents on https://liiplweb.linkintime.co.in/formsreg/submission-of-form15g-15h.html on or before Tuesday, July 16, 2024.

On clicking the above link, the user will be prompted to select/share the following information to register their request: -

1. Select the company (Dropdown)

2. Folio / DP-Client ID

3. PAN

4. Financial year (Dropdown)

5. Form selection

6. Document attachment - 1 (PAN)

7. Document attachment - 2 (Applicable Form(s))

8. Document attachment - 3 (Any other supporting document)

Please note that no communication on tax determination/deduction shall be entertained after Tuesday, July 16, 2024. Documents received through any other modes viz. email or hand delivery will not be considered to determine/deduct TDS/withholding tax.

Shareholders are requested to note that in case tax on dividend is deducted at a higher rate on account of non-receipt or insufficiency of requisite documents, they can claim refund at the time of filing income tax return. No claim shall lie against the Company for taxes once deducted. The Company will mail a soft copy of the TDS certificate to shareholders on their registered email IDs post completion of activities. Shareholders may view the credit of TDS in Form 26AS/AIS, which can be downloaded from their e-filing account at https:// www.incometax.gov.in.

Shareholders are requested to update their PAN and email address with depositories (for shares held in demat mode) and with the Link Intime (for shares held in physical mode), if not already done.

Pursuant to General Circular No. 20/2020 dated May 5, 2020, issued by the Ministry of Corporate Affairs, Government of India, dividend will be paid electronically in the bank accounts of Shareholders. Shareholders holding shares in demat form are advised to keep the bank details updated with their depository participants. Shareholders holding shares in physical form and who have not updated their bank accounts details are requested to update the same with Link Intime after following the process available on the link https://liiplweb. linkintime.co.in/formsreg/submission-of-form-15g-15h.html

To view/download - Form 15G - Annexure I click here.

To view/download - Form 15H - Annexure II click here.

To view/download - Declaration of category of shareholder - Annexure III click here.

20 LUPIN LIMITED | Integrated Report 2023-2024

To view/download - Declaration for transfer of credit of TDS to beneficial owner as per Rule 37BA - Annexure IV click here.

To view/download - Steps for filing Electronic Form 10F - Annexure V click here.

To view/download - Non-Resident Tax Declaration - Annexure VI click here.

Pursuant to General Circular No. 20/2020 dated May 5, 2020, issued by the Ministry of Corporate Affairs, Government of India, dividend will be paid electronically in the bank accounts of Shareholders. The Company will dispatch thru postal services, demand drafts for dividend payments to those shareholders who have not registered their bank details. Shareholders holding shares in demat form are advised to keep the bank details updated with their depository participants. Shareholders holding shares in physical form and who have not updated their bank accounts details are requested to update the same with Link Intime after following the process available on the link https://linkintime.co.in/emailreg/email_register.html.

Annexure - I

i

Lupin Limited

Name of the Company

DP ID - Client ID/Folio No.

INCOME TAX RULES, 1962

1FORM NO. 15G

[See Section 197A(1), 197A(1A) and Rule 29C]

Declaration under Section 197A(1) and Section 197A(1A) to be made by an individual or a person (not being a company or firm) claiming certain incomes without deduction of tax

PART -I

incomes without deduction of PART -I	incomes without deduction of PART -I	incomes without deduction of PART -I	incomes without deduction of PART -I	incomes without deduction of PART -I	incomes without deduction of PART -I	tax	tax	tax
1.Name of Assessee (Declarant):						2.PAN of the Assessee1
3.Status2		4.Previous year (P.Y.)3(for which declaration is being made): 2024-2025				5.Residential Status4Resident
6.Flat/Door/Block No.		7.Name of Premises				8.Road/Street/Lane		9.Area/ Locality
10.Town/City/District		11.State				12.PIN		13.Email ID:
14.Telephone No. (with STD Code) and Mobile No.		15.(a) Whether assessed to tax under the Income-tax Act,19615 (b) If yes, latest assessment year for which assessed					Yes No
16.Estimated income for which this declaration is made				17.	Estimated total income of the P.Y. in which income mentioned in column16 to be included6
18.Details of Form No. 15G other than this form filed during the previous year, if any7
Total No. of Form No. 15G filed				Aggregate amount of income for which Form No. 15G filed
19.Details of income for which the declaration is filed
SI. No.	Identification number of relevant investment/account, etc8		Nature of income	Section under which tax is deductible			Amount of income
			Dividend Income	194

Signature of the Declarant[9]

ii

Declaration/Verification[10]

I/We do hereby declare that to the best of my /our knowledge and belief what is stated above is correct, complete and is truly stated.

*I/We declare that the incomes referred to in this form are not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961.

I/We further declare that the tax on my/our estimated total income including income/incomes referred to in column 16 and aggregate amount of *income/incomes referred to in column 18 computed in accordance with the provisions of the Income-tax Act,1961, for the previous year ending on 31-MAR-2025 relevant to the assessment year 2025-2026 will be nil.

I/We also declare that my/our income/incomes referred to in column16 and the aggregate amount of *income/incomes referred to in column 18 for the previous year ending on 31-MAR-2025 relevant to the assessment year 2025-2026 will not exceed the maximum amount which is not charge-able to income-tax.

Place: Date:

Signature of the Declarant

1. Substituted by IT (Fourteenth Amdt.) Rules 2015, w.e.f. 1-10-2015. Earlier Form No. 15G was inserted by the IT (Fifth Amdt.)Rules, 1982, w.e.f. 21-6-1982 and later on amended by the IT (Fifth Amdt.) Rules, 1989, w.r.e.f. 1-4-1988, IT (Fourteenth Amdt.) Rules, 1990, w.e.f. 20-11-1990 and IT (Twelfth Amdt.) Rules, 2002, w.e.f. 21-6-2002 and substituted by the IT (Eighth Amdt.) Rules, 2003, w.e.f. 9-6-2003 and IT (Second Amdt.) Rules, 2013, w.e.f. 19-2-2013.

PART- II

[To be filled by the person responsible for paying the income referred to in column 16 of Part I]

1. Name of the person responsible for paying 2. Unique Identification No.[11] LUPIN LIMITED

3. PAN of the person responsible for 4. Complete Address Kalpataru 5. TAN of the person responsible for paying AAACL1069K Inspire, 3[rd] Floor, Off Western paying MUML04496C Express Highway, Santacruz (E), Mumbai – 400055.

6. Email 7. Telephone No. (with STD Code) and 8. Amount of income paid[12] Mobile No. 022-66402323

9. Date on which Declaration is received 10. Date on which the income has been paid/credited (DD/MM/YYYY) (DD/MM/YYYY)

Place: Date:

Signature of the person responsible for paying the income referred to in column 16 of Part-I

*Delete whichever is not applicable.

1. As per provisions of Section 206AA(2), the declaration under Section 197A(1) or 197A(1A) shall be invalid if the declarant fails to furnish his valid Permanent Account Number (PAN).

2. Declaration can be furnished by an individual under Section 197 A (1) and a person (other than a company or a firm) under Section 197A(1A).

iii

3. The financial year to which the income pertains.

4. Please mention the residential status as per the provisions of Section 6 of the Income-tax Act, 1961.

5. Please mention “Yes” if assessed to tax under the provisions of Income-tax Act, 1961 for any of the assessment year out of six assessment years preceding the year in which the declaration is filed.

6. Please mention the amount of estimated total income of the previous year for which the declaration is filed including the amount of income for which this declaration is made.

7. In case any declaration(s) in Form No. 15G is filed before filing this declaration during the previous year, mention the total number of such Form No. 15G filed alongwith the aggregate amount of income for which said declaration(s) have been filed.

8. Mention the distinctive number of shares, account number of term deposit, recurring deposit, National Savings Schemes, life insurance policy number, employee code, etc.

9. Indicate the capacity in which the declaration is furnished on behalf of a HUF, AOP, etc.

10. Before signing the declaration/verification, the declarant should satisfy himself that the information furnished in this form is true, correct and complete in all respects. Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the Income-tax Act, 1961 and on conviction be punishable-

• i) in a case where tax sought to be evaded exceeds twenty-five lakh rupees, with rigorous imprisonment which shall not be less than six months but which may extend to seven years and with fine;

• ii) in any other case, with rigorous imprisonment which shall not be less than three months but which may extend to two years and with fine.

11. The person responsible for paying the income referred to in column 16 of Part I shall allot a unique identification number to all the Form No. 15G received by him during a quarter of the financial year and report this reference number alongwith the particulars prescribed in rule 31A(4)(vii) of the Income-tax Rules, 1962 in the TDS statement furnished for the same quarter. In case the person has also received Form No. 15H during the same quarter, please allot separate series of serial number for Form No. 15G and Form No. 15H.

12. The person responsible for paying the income referred to in column 16 of Part I shall not accept the declaration where the amount of income of the nature referred to in sub-section (1) or sub-section (1A) of Section 197A or the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to tax. For deciding the eligibility, he is required to verify income or the aggregate amount of incomes, as the case may be, reported by the declarant in columns 16 and 18.

Annexure - Il

i

Lupin Limited

Name of the Company

DP ID - Client ID/Folio No.

INCOME TAX RULES, 1962

1FORM NO. 15H

[See Section 197A(1C) and Rule 29C]

Declaration under section 197A(1C) to be made by an individual who is of the age of sixty years or more claiming certain incomes without deduction of tax.

PART -I

1. Name of Assessee 2. Permanent Account Number or Aadhaar 3. Date of Birth[2] (DD/MM/YYYY) (Declarant) Number of the Assessee[1]

4. Previous year (P.Y.)[3] 5. Flat/Door/Block No. 6. Name of Premises (for which declaration is being made) 2024-2025

7. Road/Street/Lane 8. Area/Locality 9. Town/City/ 10. State District

11. PIN 12. Email 13. Telephone No. (with STD Code) and Mobile No.

14. (a) Whether assessed to tax[4] : Yes No (b) If yes, latest assessment year for which assessed

15. Estimated income for which this declaration is made

16. Estimated total income of the P.Y. in which income mentioned in column 15 to be included[5]

17. Details of Form No. 15H other than this form filed for the previous year, if any[6]

Total No. of Form No. 15H filed Aggregate amount of income for which Form No. 15H filed

18.Details of income for which the declaration is filed	18.Details of income for which the declaration is filed	18.Details of income for which the declaration is filed	18.Details of income for which the declaration is filed	18.Details of income for which the declaration is filed
SI. No.	Identification number of relevant investment/account, etc.7	Nature of income	Section under which tax is deductible	Amount of income
		Dividend income	194

Signature of the Declarant

1. Substituted by the IT (Fourteenth Amdt.) Rules, 2015, w.e.f. 1-10-2015. Earlier Form No. 15H was amended by the IT (Fifth Amdt.) Rules, 1982, w.e.f. 21-6-1982, IT (Fifth Amdt.) Rules, 1989, w.r.e.f. 1-4-1988, IT (Fourteenth Amdt.) Rules, 1990, w.e.f. 20-11-1990, IT (Twelfth Amdt.) Rules, 1992, w.e.f. 1-6-1992, IT (Seventh Amdt.) Rules, 1995, w.e.f. 1-7-1995, IT (Thirty-second Amdt.) Rules, 1999, w.e.f. 19-11-1999, IT (Twelfth Amdt.) Rules, 2002, w.e.f. 21-6-2002, IT (Eighth Amdt.) Rules, 2003, w.e.f. 9-6-2003, IT (Fourteenth Amdt.) Rules, 2003, w.e.f. 1-8-2003 and IT (Second Amdt.) Rules, 2013, w.e.f. 19-2-2013.

ii

Declaration/Verification8

I do hereby declare that I am resident in India within the meaning of Section 6 of the Income-tax Act, 1961. I also hereby declare that to the best of my knowledge and belief what is stated above is correct, complete and is truly stated and that the incomes referred to in this form are not includible in the total income of any other person under Sections 60 to 64 of the Income-tax Act, 1961. I further declare that the tax on my estimated total income including income/incomes referred to in column 15 and aggregate amount of income/incomes referred to in column 17 computed in accordance with the provisions of the Income-tax Act, 1961, for the previous year ending on 31-MAR-2025 relevant to the assessment year 2025-2026 will be nil.*

Place: Date: Signature of the Declarant

PART- II

[To be filled by the person responsible for paying the income referred to in column 15 of Part I]

1.Name of the person responsible for paying	1.Name of the person responsible for paying	2.Unique Identification No.9	2.Unique Identification No.9
LUPIN LIMITED
3.Permanent Account Number or Aadhaar Number of the person responsible for paying	4.Complete Address		5.TAN of the person responsible for paying
AAACL1069K	Kalpataru Inspire, 3rdFloor, Off. Western Express Highway, Santacruz (E), Mumbai - 400055.		MUML04496C
6.Email	7.Telephone No. (with STD Code) and Mobile No.		8.Amount of income paid10
	022-66402323
9.Date on which Declaration is received (DD/MM/YYYY)		10.Date on which the income has been paid/credited (DD/MM/YYYY)

Place: Date:

Signature of the person responsible for paying the income referred to in column 15 of Part I

*Delete whichever is not applicable.

1. As per provisions of Section 206AA(2), the declaration under Section 197A(1C) shall be invalid if the declarant fails to furnish his valid Permanent Account Number or Aadhaar Number.

2. Declaration can be furnished by a resident individual who is of the age of 60 years or more at any time during the previous year.

3. The financial year to which the income pertains.

4. Please mention “Yes” if assessed to tax under the provisions of Income-tax Act, 1961 for any of the assessment year out of six assessment years preceding the year in which the declaration is filed.

iii

5. Please mention the amount of estimated total income of the previous year for which the declaration is filed including the amount of income for which this declaration is made.

6. In case any declaration(s) in Form No. 15H is filed before filing this declaration during the previous year, mention the total number of such Form No. 15H filed along with the aggregate amount of income for which said declaration(s) have been filed.

7. Mention the distinctive number of shares, account number of term deposit, recurring deposit, National Savings Schemes, life insurance policy number, employee code, etc.

8. Before signing the declaration/verification, the declarant should satisfy himself that the information furnished in this form is true, correct and complete in all respects. Any person making a false statement in the declaration shall be liable to prosecution under Section 277 of the Income-tax Act, 1961 and on conviction be punishable—

• i) in a case where tax sought to be evaded exceeds twenty-five lakh rupees, with rigorous imprisonment which shall not be less than six months but which may extend to seven years and with fine;

• ii) in any other case, with rigorous imprisonment which shall not be less than three months but which may extend to two years and with fine.

9. The person responsible for paying the income referred to in column 15 of Part I shall allot a unique identification number to all the Form No. 15H received by him during a quarter of the financial year and report this reference number along with the particulars prescribed in rule 31A(4)(vii) of the Income-tax Rules, 1962 in the TDS statement furnished for the same quarter. In case the person has also received Form No. 15G during the same quarter, please allot separate series of serial number for Form No. 15H and Form No. 15G.

10. The person responsible for paying the income referred to in column 15 of Part I shall not accept the declaration where the amount of income of the nature referred to in Section 197A(1C) or the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to tax after allowing for deduction(s) under Chapter VI-A, if any, or set off of loss, if any, under the head “income from house property” for which the declarant is eligible. For deciding the eligibility, he is required to verify income or the aggregate amount of incomes, as the case may be, reported by the declarant in columns 15 and 17.

1[Provided that such person shall accept the declaration in a case where income of the assessee, who is eligible for rebate of income-tax under section 87A, is higher than the income for which declaration can be accepted as per this note, but his tax liability shall be nil after taking into account the rebate available to him under the said section 87A.]

1 Inserted by Income-tax (4[th] Amendment) Rules, 2019, w.e.f. 22-5-2019.

Annexure - III

i

<>

Lupin Limited Kalpataru Inspire, 3[rd] Floor, Off. Western Expressway Highway, Santacruz (East), Mumbai - 400 055.

Subject: Declaration regarding Category and Beneficial Ownership of equity shares

Ref: PAN – <>

Folio Number / DP ID / Client ID –

With reference to the captioned subject and in relation to the appropriate withholding of taxes on the Dividend payable to me / us by Lupin Limited . (“the Company”), I / We hereby declare as under:

I/We, <>

<> , holding

equity share(s) of the Company, hereby declare that I am /we are tax resident of India for the period April 2024-March 2025 (Indian Fiscal Year).

We hereby declare that (Select Applicable)

• We are Insurance Company and are the beneficial owner of the equity share(s) held in the Company; and we are submitting self-attested copy of PAN card.

• We are Mutual Fund specified in Section 10(23D) of the Income-tax Act, 1961 (“Act”) and are the beneficial owner of the equity share(s) held in the Company; and we are submitting self- attested copy of PAN card and registration certificate.

• We are Alternative Investment fund (AIF) established in India and are the beneficial owner of the equity share(s) held in the Company; and our income is exempt under Section 10(23FBA) of the Act and are governed by Securities and Exchange Board of India regulations as Category I or Category II AIF; and we are submitting self-attested copy of the PAN card and registration certificate.

• We are << category of the entity >> and are the beneficial owner of the equity share(s) held in the Company; and are not subject to withholding tax under Section 196 of the Act and we are submitting self-attested copy of the documentary evidence supporting the exemption status along with selfattested copy of PAN card.

• We are specified person <> in terms of section 10(23FE) and are the beneficial owner of the equity share(s) held in the Company; and our income is exempt under Section 10(23FBA) of the Act and we are submitting self-attested copy of the documentary evidence supporting the exemption status along with self-attested copy of PAN card.

• I/ We further indemnify the Company for any consequences arising out of any acts of commission or omission initiated by the Company by relying on my/ our above averment.

I/We hereby confirm that the above declaration should be considered to be applicable for all the equity shares held in the Company under PAN/ accounts declared in the form.

Thanking you.

Yours faithfully,

For <>

Authorized Signatory

Annexure - IV

i

<>

Lupin Limited Kalpataru Inspire, 3[rd] Floor, Off. Western Expressway Highway, Santacruz (East), Mumbai - 400 055.

Subject: Declaration under Rule 37BA of the Income tax Rules, 1962 for transferring credit of tax deducted at source to other person

Ref: PAN – <> Folio Number / DP ID / Client ID – _______

With reference to the captioned subject and in relation to the appropriate withholding of taxes on the Dividend payable to me by Lupin Limited . (“the Company”), I hereby declare as under:

I , <>

<>

, holding equity

share(s) of the Company, hereby request the company to provide the credit of Tax Deducted at source on the dividend payouts by the Company, separately to below mentioned shareholders (beneficiary shareholder) of the said shares as per the following information given.

The reason for such request is that the beneficial ownership of shares that are held by below mentioned persons (Total number of shares). The details are provided as under:

Name	PAN	No. of shares held	Residential status for FY 2022-23	Country of residence in case residential status mentioned in Column (4) is other than India	Address	Email ID & Contact no
(1)	(2)	(3)	(4)	(5)	(6)	(7)

I further declare that the above-mentioned dividend income is assessable in the hands of the beneficiaries of the shares (as per list provided above) and not in my hands. As per Sub-rule 2(i) of rule 37BA of the Income tax Rules, 1962, Credit for Tax deducted at source (TDS) from the dividend Income is allowable to these beneficiaries of shares. I undertake that I will not claim credit of TDS from the dividend amount assessable in the hands of the beneficiaries as listed above.

I hereby declare that above information is correct, complete and is truly stated. I undertake to indemnify for any tax liability (including but not limited to interest and penalty) that may arise on you in future on account of deduction of tax at source in the hands of beneficial shareholders on the basis of the above declaration furnished by us.

Yours faithfully,

For <>

Authorized Signatory

Annexure - V

i

Steps for filing e-Form 10F

~~�~~ ~~Non-Residents having Indian PAN~~

• 1) Click on the link- https://www.incometax.gov.in/iec/foportal/

• 2) Login to the income tax portal using the login credentials

• 3) If don’t have login, then first register on Income tax portal (For Process of Registration refer IT manual in below link) https://www.incometax.gov.in/iec/foportal/help/register-for-efiling-company

• 4) After Login register principal officer/ Director/ authorize representative DSC in my profile (For process of Registration of DSC refer IT manual in below link) https://www.incometax.gov.in/iec/foportal/help/howto-register-e-filing-dsc

• 5) Go to Dashboard and Click on tab E-File > select Income Tax Forms>File Income Tax Form

• 6) Click on the tab “Persons not dependent on any Source of Income (Source of Income not relevant)”

• 7) Select Form 10F and select the assessment year for which it is required to be filed, click on continue.

• 8) Fill the required details and upload latest & valid “Tax Residency Certificate” in pdf file

• 9) Click on preview and check the details

• 10) Submit the form and verify it with DSC (Digital Signature Certificate)

• 11) Download electronically filed Form 10F: Click on tab E-File > select Income Tax Forms>View Filed Forms>Select Form 10F

~~�~~ ~~Non-Residents not having Indian PAN~~

Procedure for registration in Indian Income Tax Portal:

• 1) The non-resident can click on the ‘Register’ option on the e-filing portal, i.e., https://www.incometax.gov. in/iec/foportal

• 2) Under the ‘others’ category, there is an option to choose ‘non-residents not having a PAN and not required to have a PAN‘.

• 3) Certain basic details will need to be entered, like name, date of incorporation, tax identification number, status, and country of residence.

• 4) The non-resident will then have to provide the details of the key person, i.e., name, date of birth, etc.

• 5) The next step is to provide contact details, i.e., email address and mobile number, which will be verified through an OTP.

• 6) Lastly, the non-resident will need to upload certain documents like its TRC, address proof, identification proof, and any other document if required.

• 7) Once the non-resident is registered on the portal, they can file Form 10F electronically using digitally signature. Thus, the authorized person for the non-resident must obtain a DSC in India and digitally sign the e-form 10F.

Steps for Electronic Form 10F:

• 1) Click on link https://www.incometax.gov.in/iec/foportal/

• 2) Login to the income tax portal using the login credentials

• 3) After Login register principal officer/ Director/ authorize representative DSC in my profile (For process of Registration of DSC refer IT manual in below link) https://www.incometax.gov.in/iec/foportal/help/howto-register-e-filing-dsc

• 4) Go to Dashboard and Click on tab E-File > select Income Tax Forms>File Income Tax Form

• 5) Click on the tab “Persons not dependent on any Source of Income (Source of Income not relevant)”

• 6) Select Form 10F and select the assessment year for which it is required to be filed, click on continue.

• 7) Fill the required details and upload latest & valid “Tax Residency Certificate”

• 8) Click on preview and check the details

• 9) Submit the form and verify it with DSC (Digital Signature Certificate)

• 10) Download Electronically filed Form 10F: Click on tab E-File > select Income Tax Forms>View Filed Forms>Select Form 10F

Annexure - VI

i

<>

Lupin Limited Kalpataru Inspire, 3[rd] Floor, Off Western Express Highway, Santacruz (East) Mumbai - 400 055

Dear Sir/Madam,

Re.: Self declaration with respect to availment of Tax treaty benefits in relation to receipt of dividend income from Lupin Limited for Financial Year (FY) 2024-25

This is to certify that: -

1. I/We, <>, having permanent account number (PAN) under the Indian Income Tax Act, 1961 (Act) - <>, am/are tax resident of <> and eligible to claim benefits of the India - <> Double Tax Avoidance Agreement (DTAA), read with the provisions laid down in the Multilateral Instrument (MLI), wherever applicable;

2. As per the requirement of the relevant provisions of the above referred DTAA, I/we am/are the beneficial owner(s) of the aforesaid shares as well as the dividend arising from such shareholding;

3. I/We further declare that I/We have the right to use and enjoy the dividend received/ receivable from the above shares and such right is not constrained by any contractual and/ or legal obligation to pass on such dividend to another person;

4. I/We do not have any Permanent Establishment (PE) or fixed base in India in FY 2024-25 as construed under relevant Articles of the applicable tax treaty, nor do we have any PE or business connection in India as construed under the relevant provisions of the Act. In the event of I/We having a PE in India or Dividend income is attributable/effectively connected to such PE, I/We acknowledge our obligation to inform you forthwith with necessary details;

5. I/We hereby declare that the investments made by me/us in the shares of Lupin Limited are not arranged in a manner which results in obtaining a tax benefit, whether directly or indirectly, as one of its principal purposes. The tax benefit, if any, derived from such investments would be in accordance with the object and purpose of the relevant provisions of the DTAA between India and <>; and

6. Further, our claim for relief under the DTAA is not restricted by application of Limitation of Benefit clause, if any, thereunder.

This declaration is valid for the period 1 April 2024 to 31 March 2025.

I/We confirm that the above is true to the best of our knowledge and I/We shall be solely responsible for any adverse income-tax consideration that may arise in India on the dividend income to be received from Lupin Limited.

Thanking you,

Yours Sincerely,

For

Name:

==> picture [47 x 74] intentionally omitted <==

==> picture [227 x 321] intentionally omitted <==

Transforming Hope into Healing

Integrated Report 2023-2024

==> picture [105 x 30] intentionally omitted <==

==> picture [191 x 39] intentionally omitted <==

At Lupin, our unwavering dedication lies in shaping a future where healthcare is accessible, sustainable, and transformative, making a positive difference in the lives of individuals and communities worldwide. As a leading pharmaceutical company, we prioritize creating value for all our stakeholders. We proudly present our fourth Integrated Report (IR). The Report offers a comprehensive overview of our performance for FY24 across six key areas, namely Financial, Manufactured, Intellectual, Human, Natural, and Social & Relationship. By effectively leveraging these resources, we strive to create long-term value for all our stakeholders and contribute to a better tomorrow for everyone.

Reporting Frameworks and Guidelines

Lupin’s Integrated Report FY24 adheres to the principles and guidelines set forth by the International Integrated Reporting Council’s Integrated Reporting Framework. This framework was voluntarily adopted by the top 500 listed companies in India, as notified by the Securities and Exchange Board of India in February 2017. Through this report, we strive to showcase the value we bring to the healthcare industry and our dedication to uplift society. Wherever essential, we have also relied upon the disclosure requirements of the Sustainability Accounting Standards Board for the Biotechnology and Pharmaceuticals sector. The Key Performance Indicators are in accordance with the Global Reporting Initiative Standards. We have also provided a mapping to the 10 principles of UN Global Compact. This also illustrates our commitment and initiatives to the UN Sustainable Development Goals.

By aligning with these reporting frameworks, we aim to provide our shareholders and stakeholders with a comprehensive view of our non-financial performance encompassing our Environment, Social, and Governance management, targets, and their impact. This report also adheres to the mandatory disclosure requirements of the updated Business Responsibility and Sustainability Reporting (BRSR) mandate of SEBI in FY24; it is aligned to the nine principles of the National Guidelines on Responsible Business Conduct, which have been included to enhance the reporting boundaries. The financial and statutory information presented in this report, including the Director’s Report, Corporate Governance Report, and the Management Discussion, adhere to the regulatory requirements mandated by the Companies Act, 2013, Indian Accounting Standards, the Securities

and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Secretarial Standards and other applicable laws.

Reporting Boundary, Scope and Period

The FY24 Integrated Report covers both the financial and non-financial performance of Lupin from April 1, 2023 to March 31, 2024, including Lupin’s subsidiaries and operational units worldwide. In addition, the report provides insights into the factors that impact Lupin’s ability to generate value. We have included information on our operational units, where relevant, to provide a comprehensive view of the company’s operational excellence and efficiency.

Exclusions

There are no geographical exclusions.

Responsibility Statement

Lupin firmly believes that this Integrated Report is a fair representation of our company’s financial, non-financial, sustainability and operational performance for FY24. The Board acknowledges that the contents of this report have been assimilated in consultation with various functions of the business and have been developed under the guidance of senior management and functional heads.

Assurance

The non-financial information in our IR and BRSR have been independently assured by DNV Business Assurance India Private Limited (Firm Registration No. 215094). The statement of the assurances is available on page number 183-196. The financial statements has been independently audited by B S R & Co. LLP. The audit statement is available on page number 274-283.

Feedback

It is our responsibility to receive inputs for improvement and address all our stakeholders’ concerns and expectations.

Please share your feedback, suggestions, and/or queries by contacting:

Name: Rajalakshmi Azariah Designation: Vice President & Global Head - Corporate Communications Email: rajalakshmiazariah@lupin.com

Corporate Overview Statutory Reports Financial Statements

1

FY24 At A Glance

==> picture [5 x 13] intentionally omitted <==

==> picture [17 x 36] intentionally omitted <==

==> picture [37 x 36] intentionally omitted <==

₹200,108 Mn Total Revenue From Operations

₹39,307 Mn EBITDA

1,420,000+ Patients Reached Through Patient Education Programs

78,000+

HCPs Participated in Doctor Education Programs

21% YoY

Reduction in Scope 1 and Scope 2 Emissions in FY24

==> picture [40 x 42] intentionally omitted <==

R&D

866

Active Patent Applications up to March 2024

442

ANDAs and NDAs filed with U.S. FDA up to March 2024

RANKINGS*

3[rd]

in the U.S. (by prescriptions)

7[th]

in Indian Pharma Market

11[th]

Largest Generics Company Globally

==> picture [35 x 33] intentionally omitted <==

PRODUCTS

25+

Robust Pipeline of Injectables for FY25

15+

Robust Pipeline of Respiratory Products for FY25

27 Bn+

Formulation Units Sold Globally (IQVIA MAT Mar 24 Standard Units)

*Source: IQVIA MIDAS MAT Mar’24

==> picture [539 x 310] intentionally omitted <==

----- Start of picture text -----

2 LUPIN LIMITED | Integrated Report 2023-2024
----- End of picture text -----

==> picture [164 x 29] intentionally omitted <==

==> picture [33 x 21] intentionally omitted <==

==> picture [95 x 13] intentionally omitted <==

==> picture [52 x 12] intentionally omitted <==

==> picture [24 x 22] intentionally omitted <==

==> picture [129 x 16] intentionally omitted <==

Chairman’s Letter CEO & MD’s Letter CFO’s Letter

==> picture [31 x 22] intentionally omitted <==

==> picture [74 x 15] intentionally omitted <==

==> picture [29 x 22] intentionally omitted <==

==> picture [135 x 15] intentionally omitted <==

Value Creation Model

==> picture [32 x 22] intentionally omitted <==

==> picture [69 x 12] intentionally omitted <==

==> picture [32 x 22] intentionally omitted <==

==> picture [154 x 15] intentionally omitted <==

==> picture [81 x 16] intentionally omitted <==

Global Trends

==> picture [26 x 22] intentionally omitted <==

==> picture [66 x 12] intentionally omitted <==

==> picture [57 x 16] intentionally omitted <==

India North America Europe, Middle East and Africa Growth Markets

API Plus

Corporate Overview Statutory Reports Financial Statements

3

==> picture [33 x 21] intentionally omitted <==

==> picture [147 x 14] intentionally omitted <==

==> picture [77 x 16] intentionally omitted <==

==> picture [34 x 21] intentionally omitted <==

==> picture [88 x 12] intentionally omitted <==

Corporate Information Board of Directors

==> picture [32 x 22] intentionally omitted <==

==> picture [31 x 22] intentionally omitted <==

==> picture [29 x 21] intentionally omitted <==

==> picture [42 x 22] intentionally omitted <==

==> picture [75 x 12] intentionally omitted <==

==> picture [82 x 16] intentionally omitted <==

==> picture [96 x 13] intentionally omitted <==

==> picture [87 x 15] intentionally omitted <==

ESG Journey Double Materiality ESG Commitment

==> picture [148 x 15] intentionally omitted <==

Financial Capital Manufactured Capital Intellectual Capital Human Capital Natural Capital Social & Relationship Capital

==> picture [113 x 16] intentionally omitted <==

==> picture [37 x 22] intentionally omitted <==

==> picture [40 x 22] intentionally omitted <==

==> picture [38 x 22] intentionally omitted <==

==> picture [42 x 21] intentionally omitted <==

==> picture [49 x 21] intentionally omitted <==

==> picture [71 x 12] intentionally omitted <==

==> picture [68 x 12] intentionally omitted <==

==> picture [74 x 11] intentionally omitted <==

==> picture [109 x 15] intentionally omitted <==

Directors’ Report Corporate Governance Report BRSR

==> picture [131 x 13] intentionally omitted <==

Consolidated Standalone

==> picture [111 x 12] intentionally omitted <==

4 LUPIN LIMITED | Integrated Report 2023-2024

Dr. Desh Bandhu Gupta

Corporate Overview Statutory Reports Financial Statements 5

==> picture [276 x 54] intentionally omitted <==

(Gautama Buddha’s Wish: Be your own light)

Desh Bandhu Gupta, a chemistry professor and son of a village school teacher, started Lupin in 1968,

showing us that no goal is unachievable when science and excellence meet ethics.

We are now the 3[rd] largest generics company in the U.S., 7[th] largest Inhalation drug provider, 11[th] largest generics company globally, 7[th] largest pharma company in India, and the largest provider of TB drugs in the world. The 22,000 strong Lupin family, across 15 manufacturing locations in India and other countries, offices around the world, state of the art R&D centers, diagnostics labs and neuro-rehab center, provide healthcare solutions that are for people, not just profit.

DBG taught us that when you grow, you grow for the community. We are committed to transforming the lives of millions of patients and families with the best science, technology, and social development, reframing our future and millions of lives. DBG’s dream will be fulfilled when no one is left without the quality care they deserve, and we make medicines for the world a synonym for Made in India.

6 LUPIN LIMITED | Integrated Report 2023-2024

Corporate Overview Statutory Reports Financial Statements

7

==> picture [258 x 774] intentionally omitted <==

==> picture [96 x 42] intentionally omitted <==

==> picture [105 x 30] intentionally omitted <==

Lupin Limited, headquartered in Mumbai, India, is a global pharmaceutical leader with a footprint across the U.S., LATAM, APAC, EMEA and India, with products distributed in over 100 markets. With a diverse portfolio of over 1,200 products, Lupin remains committed to its mission of making quality healthcare accessible to the communities we serve. Our visionary Founder, Dr. Desh Bandhu Gupta, instilled in us the importance of offering quality, affordable and innovative medicines and being a responsible corporate citizen, making a positive difference to patients, communities and the environment.

Lupin has a network of 15 manufacturing sites, 7 research centers, and a dedicated workforce of over 22,000 professionals. The company places emphasis on business excellence, R&D and innovation, patientcentricity and quality and compliance to consistently deliver value to our stakeholders. Lupin has also been at the forefront of leveraging digital solutions to serve patient needs.

Our efforts have positioned Lupin as a leader in generics, branded generics, complex generics, APIs, biosimilars and specialty medicines. With a specialized portfolio that includes branded and generic formulations, biologic products and active pharmaceutical ingredients, the company enjoys leadership positions in India, the U.S. and several other key markets focused on therapeutic areas such as respiratory, cardiovascular, anti-diabetic, antiinfective, gastrointestinal, central nervous system and women’s health.

Lupin is committed to improving patient health outcomes through its adjacencies – Lupin Diagnostics, Lupin Digital Health and Atharv Ability.

Lupin Human Welfare and Research Foundation is a testament to the company’s commitment to enriching communities and enhancing both Lives and Livelihoods. Through initiatives across 4,771 villages in eight states of India, we have positively impacted the lives of over 1.57 Mn people.

Our strides in the ESG journey have propelled Lupin to the forefront of the global pharmaceutical industry, where we rank in the top 5 percent. With a DJSI score of 69, we stand as a beacon of sustainability and responsible corporate citizenship, setting new standards for excellence in the pharma sector.

At Lupin, we strive to create meaningful and impactful health outcomes that benefit patients and communities alike. Lupin continues to stride ahead in its quest for excellence and is committed to ensuring an outstanding FY25, unlocking a bold and prosperous future for all its stakeholders.

8 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [235 x 93] intentionally omitted <==

----- Start of picture text -----

Our
----- End of picture text -----

==> picture [123 x 124] intentionally omitted <==

==> picture [87 x 15] intentionally omitted <==

==> picture [83 x 15] intentionally omitted <==

We relentlessly pursue excellence through innovation and continuous improvement in all our projects, processes and products.

To set our standards, we benchmark with the best in the world.

==> picture [123 x 124] intentionally omitted <==

==> picture [122 x 19] intentionally omitted <==

==> picture [42 x 20] intentionally omitted <==

We empower our employees to generate new ideas, explore avenues and offer solutions that add exceptional value.

We encourage them to build ownership in all endeavours by assuming responsibility with passion and conviction.

==> picture [123 x 124] intentionally omitted <==

==> picture [81 x 14] intentionally omitted <==

==> picture [48 x 15] intentionally omitted <==

We strive to understand and meet customer needs in a professional and responsive manner.

We focus on building long-term partnerships for mutual benefit.

Corporate Overview Statutory Reports Financial Statements 9

Values

==> picture [123 x 124] intentionally omitted <==

==> picture [123 x 124] intentionally omitted <==

==> picture [124 x 124] intentionally omitted <==

==> picture [67 x 20] intentionally omitted <==

==> picture [86 x 15] intentionally omitted <==

==> picture [121 x 18] intentionally omitted <==

We conduct ourselves with uncompromising integrity and honesty with the highest standards of ethical behavior and transparency.

Everything we do must stand public scrutiny.

We align the efforts and energies of our people across all levels and geographies to deliver outstanding results to our stakeholders.

We encourage diverse opinions and work together in a coordinated and mutually supportive way.

We are compassionate and sensitive towards all our stakeholders and treat them the way we would expect to be treated.

We provide equal and fair opportunities for employment, learning and career development.

10 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [111 x 30] intentionally omitted <==

==> picture [162 x 41] intentionally omitted <==

==> picture [437 x 97] intentionally omitted <==

----- Start of picture text -----

(Canada)
(USA)
New Jersey
Florida, USA
----- End of picture text -----

==> picture [69 x 9] intentionally omitted <==

----- Start of picture text -----

(Mexico City, Mexico)
----- End of picture text -----

Manufacturing

India: Aurangabad, Ankleshwar, Dabhasa, Goa, Pithampur, Jammu, Mandideep, Nagpur, Pune, Sikkim, Tarapur & Vizag U.S.: New Jersey; LATAM: Mexico & Brazil

==> picture [95 x 18] intentionally omitted <==

==> picture [68 x 8] intentionally omitted <==

----- Start of picture text -----

(Minas Gerias, Brazil)
----- End of picture text -----

Research

India: Pune & Aurangabad U.S.: New Jersey & Florida LATAM: Mexico & Brazil Europe: Netherlands

Manufacturing

Research

Distribution & Marketing

Corporate Overview Statutory Reports Financial Statements

11

==> picture [553 x 574] intentionally omitted <==

----- Start of picture text -----

(Slough, United Kingdom)
(Oldenzaal, Netherlands)
(Frankfurt, Germany)
Lupin Atlantis Holdings SA
(Zug, Switzerland)
(Makati, Philippines)
(France)
(Cape Town, South Africa)
Jammu (Melbourne, Australia)
Sikkim
Pithampur
Dabhasa Mandideep
Ankleshwar
Nagpur
Tarapur Aurangabad
Pune
Vizag
Goa
----- End of picture text -----

12 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [233 x 41] intentionally omitted <==

==> picture [311 x 42] intentionally omitted <==

Chairman’s Letter

Corporate Overview Statutory Reports Financial Statements 13

Dear Shareholders,

At Lupin, our unwavering focus has been on providing the best to the communities that we serve. This belief is reflected in our delivery of high quality healthcare offerings that enhance patient outcomes, and in our efforts to uplift communities through our social initiatives and beyond the pill programs. Driven by our commitment to business excellence and innovation, our goal is to be a trusted partner for quality medicines, transforming Hope into Healing.

This has been a pivotal year for Lupin. We have witnessed remarkable success, strategic progress, and significant advancement in our journey. While this has been the year of execution, we are confident of our plans and strategies to strengthen our position and drive sustainable growth.

Our Performance and Shareholder Returns

I am very pleased to share that FY24 stands out as a stellar year for us in terms of both financial performance and growth. We continued to improve our operating margins and maintained growth momentum over the year. Our key regions, the U.S., India, EMEA, and APAC, have been the driving force behind our significant revenue growth. Overcoming multiple headwinds, we have consistently enhanced our operating margins, a testament to our strategic strength and agility.

In India, we achieved a growth of 25% higher than the Indian Pharma Market. Our core therapy areas, including Cardiology and Respiratory, have grown well ahead of the market, with our key products supporting the growth. We also ranked #1 in the industry for new introductions. Backed by a larger workforce and a pipeline of new products, we are deeply committed to further strengthen our position in India.

Our U.S. business performed exceptionally well, contributing to half of the company’s growth, backed by the launch of Tiotropium DPI, base business stabilization and multiple product launches in the generics market. With the continued ramp up of Tiotropium and new product launches in FY25, we expect to sustain and grow our U.S. business.

All other major regions recorded double-digit growth, driven by markets such as Germany, Australia, and the Philippines. Our acquisitions have expanded our footprint in Europe with complex injectables in France and respiratory brands in Europe and Canada. Our API Plus devision had a remarkable year, growing by 21%, backed by key product launches.

Prioritizing Quality and Compliance

We have made strong strides in Quality and Compliance, with positive inspection outcomes, resolution of warning letters, and regulatory clearances. We continue to prioritize sustainable compliance across all our manufacturing units, further reinforcing our position as a trusted partner delivering high-quality medicines.

Way Forward: Building a solid pipeline

We have remained steadfast in our commitment to R&D and innovation, which will continue to be a strategic priority, with significant investments directed toward developing complex products in the inhalation and injectables space. Our robust new product pipeline, including several first-to-market products, puts us in a position of strength for future growth.

In our quest to transform the lives of patients globally, we remain firm in our focus on patient-centricity and the community, with innovation, collaboration and sustainability being at the core of our culture.

Commitment to our Founder’s Legacy of Sustainability

Inspired by our Founder, Dr. Desh Bandhu Gupta, we prioritize responsible leadership. We embarked on our ESG journey four years ago, and 2024 has been a milestone year in this continuum. Our leap in the Dow Jones Sustainability Index with a score of 69 and inclusion in the S&P Global Sustainability Yearbook is a reaffirmation of our commitment to ESG.

I thank our Board for its strategic leadership, our leadership team for their relentless pursuit of excellence, and every member of the Lupin family whose efforts contribute to our success. With the support of our partners and shareholders, we continue to strive to achieve our goals of enhancing patient outcomes and transforming Hope into Healing.

Warm Regards,

Manju Deshbandhu Gupta

Chairman

14 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [180 x 42] intentionally omitted <==

==> picture [57 x 23] intentionally omitted <==

==> picture [204 x 30] intentionally omitted <==

CEO & MD’s Letter

Corporate Overview Statutory Reports Financial Statements 15

Dear Shareholders,

Through the years, two aspects of our business have remained unchanged: our goal of enabling better health for communities that we serve across the globe and our commitment to providing access to high quality, affordable medicines. FY24 has been a year of significant achievements – Lupin has gone above and beyond in delivering on both these aspects and more. For patients and the communities that we serve globally, Lupin is a catalyst for good health, Transforming Hope into Healing.

segment currently generates roughly a quarter of our global sales, and is now a material differentiator for our company, one of the main pillars of our strategy. Our U.S. business contributed significantly to the performance in the year, with products such as Tiotropium, Albuterol, GaviLyte, and Suprep driving a material part of the revenues. Complex generics in the U.S. now constitute around 40% of our sales. In India, we grew 25% faster than the Indian Pharmaceutical Market, with notable performance in the Cardiology and Respiratory therapy areas. Our growth in our internal portfolio of products has been commendable. Going forward, we are committed to also improving our performance in the diabetes segment, which has witnessed degrowth due to multiple factors, including loss of exclusivity in select brands and reduced margins. Overall, we aim to achieve an organic growth of 30% higher than the market. We are proud to be a partner of choice in India, ensuring we get the best in class solutions to our patients through our strong and diverse portfolio.

Our EMEA performance has been robust, with overall sales exceeding USD 200 Mn for the first time. Canada grew 17%, and Australia surpassed the AUD 100 Mn mark in revenues. Our businesses in South Africa and the Philippines achieved solid growth and have strong projections for the coming fiscal year, and our API Plus division saw a 21% increase in sales compared to FY23.

Performance and Growth

We are very pleased to close FY24 on a strong note, continuing to improve our operating margins and maintaining the growth momentum. We made progress each quarter throughout FY24 on all key fronts. Our multi-pronged growth strategy has pivoted around enriching our portfolio to more complex products, commercial excellence, driving our agenda in quality and manufacturing, and delivering efficiencies across our business, thus laying the foundation for future margin expansion and sustainable growth. Over the last 2 years, we have navigated Lupin through a turnaround, executing on all critical imperatives to get our organization to its rightful position to deliver on our promise of sustained and profitable growth.

On a full year basis, our top line grew 20.8% to INR 196,563 Mn, and our EBITDA grew a strong 110% driven by continued growth in North America, India, and EMEA. We are at an inflection point, and with the plans we have in front of us, we are looking at an exciting journey ahead.

Growth Levers

Reflecting on the highlights from FY24, we made substantial progress in our evolution to complex generics, a major step forward with gSpiriva (tiotropium), now commercialized in the U.S. and Canada. The Respiratory

R&D Yields Robust Results

On the R&D front, we have continued to pivot to more complex products, especially inhalation and complex injectables where we have invested close to 50% of our R&D spend during the year. We intend to maintain our lead on the respiratory front by being the first to bring products on key platforms to developed markets. Complex products today constitute around 40% of our U.S. portfolio, which we expect to grow to above 50% in the next few years. In FY24, more than 80% of the new product sales in the U.S. were from non oral-solid products.

Our robust R&D efforts have resulted in 33 filings, 63 approvals, and 41 launches globally. Key product launches such as Tiotropium, Diazepam Rectal Gel and generic Prolensa in the U.S., Vilfuro-G and Difizma in India and complex product filings, including Risperidone Long Acting Injection, highlight our commitment to delivering innovative and much needed solutions to our patients.

Focus on Quality and Compliance

Enhancing our position in quality and compliance has been and continues to be a big part of our focus. While we faced regulatory challenges at certain facilities in the last few years, we have made impressive strides on the quality and compliance front successfully. We addressed

16 LUPIN LIMITED | Integrated Report 2023-2024

the warning letter from the U.S. FDA with regard to our facilities in Pithampur and Goa. We are glad to share that all our facility inspections in the last 18 months have resulted in satisfactory outcomes. Going forward, we aim to achieve regulatory clearance for the two pending sites and attain a sustainable state of compliance across our entire manufacturing network. We aspire to be best in class on the quality and compliance front, a trusted partner for high quality medicines for all the patients and communities we serve.

Expansion of Footprint and Portfolio

In FY24, we acquired Medisol in France, expanding our complex injectables portfolio in Europe. Further, we strengthened our respiratory portfolio and Specialty business by acquiring two brands from Sanofi, Nalcrom in Europe and Aarane in Canada. We also strengthened our India portfolio through the strategic acquisition of diabetes brands Ondero and Ondero Met from Boehringer Ingelheim, and the acquisition of five brands from Menarini.

Driving Innovation in Healthcare

Going beyond the pill, we have delivered better patient outcomes and holistic healthcare by addressing unmet needs and leveraging innovation in healthcare. Lupin Diagnostics has gained momentum with the highest percentage of NABL-accredited laboratories amongst peers in India and serves over 100,000 customers on a monthly basis. Our digital therapeutics platform, Lyfe, is gradually expanding its footprint in India, and Atharv Ability, our neuro-rehabilitation center in Mumbai, addresses a significant void to deliver transformative outcomes for patients.

Sustainability and ESG are at the Heart of our Business

We are guided by our Environmental, Social, and Governance principles, which form the cornerstone of our commitment to sustainability. We are proud to be in the top 5% of companies globally with a Corporate Sustainability Assessment score of 69, as per the Dow Jones Sustainability Index. Our inclusion in the S&P Global Sustainability Yearbook 2024 showcases our dedication

==> picture [522 x 430] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 17

to integrating sustainability into our business operations, transforming Hope into Healing for a lasting impact.

Digital First

Since we embarked on a comprehensive digital transformation journey in 2021, we have continuously leveraged next-gen technologies to enhance datadriven decision making and agility in our business operations. We are now deploying transformative AI-led digital solutions across our manufacturing operations, supply chain, sales, finance, and HR, amongst others. The outcome of these initiatives has translated into better process efficiencies, improved regulatory compliance and enhanced business intelligence and transparency.

Future Growth

Reflecting on our progress, we are committed to continue to build on the momentum over the coming year. Our strong foothold in key regions and therapeutic areas, as

well as sharp focus on our delivery, will be key levers while executing on our strategic vision to achieve sustainable growth.

Our success is made possible by the hard work and dedication of our teams, the trust of our investors, and the guidance of our stakeholders. As we embark on the next chapter of our journey, we remain committed to growth, quality, operational excellence and innovation. We aspire to evolve Lupin as a trusted partner for innovative and affordable medicines in the years ahead.

We are grateful for your steadfast support and trust in Lupin. We are committed to pursue greater milestones, transforming Hope into Healing and creating sustainable value for all stakeholders.

Sincerely,

Vinita Gupta Chief Executive Officer

Nilesh Gupta Managing Director

==> picture [522 x 430] intentionally omitted <==

18 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [192 x 31] intentionally omitted <==

==> picture [212 x 38] intentionally omitted <==

CFO’s Letter

Dear Shareholders,

FY24 marked a year of resurgence and transformation for Lupin, characterized by recordbreaking sales and a significant turnaround in our financial performance. We are proud to report record-breaking sales, surpassing our previous peak in FY17 and achieving a robust double-digit growth rate exceeding 20%. This achievement is attributable to our strategic focus on complex generics, particularly in inhalation and complex injectables, which now constitute 40% of our U.S. portfolio. The buoyancy on the top line was further aided by the continued focus on operational efficiencies, resulting in rather positive outcomes.

Further, our bottom line performance has seen extraordinary progress, with profits soaring more than fourfold compared to the previous year. This impressive improvement can be attributed to a better product mix, reduced reliance on in-licensed products, increased volumes, and improved gross margins facilitated by higher inventory levels aimed at risk mitigation measures. We consistently accelerated our quarterly performance, culminating in a strong double-digit EBITDA, positioning us favorably as we move forward.

Corporate Overview Statutory Reports Financial Statements 19

purchases well, while our R&D team has helped us implement various initiatives to enable cost optimization for our existing products. This has served as a catalyst to improving our margins and securing additional business by making us more competitive.

Driving Complex Generics

Our strategic focus on complex generics has been a key driver of our success. Building on our historical strength in the oral solids platform, we have diversified our portfolio to include a wide range of complex generics. This shift, initiated as part of our R&D strategy five years ago, has begun to yield significant results. Our North America business had phenomenal growth, with sales increasing by 33.8% to INR 72,462 Mn from INR 54,173 Mn last year. This growth was primarily driven by our U.S. business, which registered sales of USD 815 Mn. Complex generics accounted for around 40% of these sales, and our inhalation portfolio doubled over the previous year. Key products such as Tiotropium, Darunavir, and Suprep showcased strong performance, contributing significantly to our revenue.

In India, our regional formulation businesses delivered a reported growth of 8.7% as against market growth of 7.6%, which is higher by 15%. Our respiratory business grew by 7.9%, well ahead of the market growth of 2.7%. The launch of Vilfuro-G, the world’s first fixed triple-dose combination for COPD, is proof of our commitment to innovation in complex generics. Overall, our India Formulation business grew by 9.6% to INR 66,564 Mn in FY24 from INR 60,759 Mn in FY23.

Our EMEA region also performed strongly, with sales growing by 24% to INR 19,235 Mn from INR 15,514 Mn, despite a 7% currency erosion in South Africa. Key drivers included our complex generics portfolio and strong performances in Germany and the UK. Complex generics accounted for over 25% of our sales in the EMEA region.

In the APAC region, Australia recorded its highest-ever sales, and the Philippines business grew by 35% to PHP 2.6 Bn from PHP 1.9 Bn last year. Although the LATAM region experienced a slight decline, with overall sales down by 7.8%, the opening of our plant in Mexico and stabilization in Brazil indicate positive future prospects.

Continuous Improvement on Cost

Our continuous improvements to achieve cost optimization with focus on reducing inefficiencies have driven profitability. Improved gross margins, which went up to 66% from 58% last year, were the primary drivers for EBITDA growth. Our procurement team has effectively engaged and negotiated deals and timed strategic

We also optimized our supply chain-related costs through better planning with Integrated Business Planning and the Kinaxis platform. Along with a singular focus on green energy and automation, this effort has significantly reduced our overall utility costs and inventory inefficiencies. Additionally, digitizing our returns payment processing and close tracking of distributors’ inventory helped prevent leakages and optimize sales returns. Overall, all these strategies have resulted in continuous improvement in yields, development of alternate vendors, and operating with a lean workforce, significantly boosting our bottom line.

Investing in the Future

Investing in R&D and strategic acquisitions remains crucial to sustain our growth trajectory. Aligned to this, our R&D investment has significantly increased to over INR 15,265 Mn from INR 12,800 Mn last year. The FDA’s approval of our Nagpur injectable facility denotes a significant milestone, enhancing our capabilities in complex generics and biosimilars.

Our acquisition of Medisol in France has strategically strengthened our presence as the second-largest injectable market in Europe, adding to our complex generics portfolio through its injectable products. The acquisitions of Ondero and Menarini complement our existing offerings in cardiac, gastro, and anti-infective therapies.

Our focus on R&D has led to the launch of various new products in our India Region Formulations, many of which have been well received by the market. Lupin India NPLs recorded the highest sales in the industry in FY24.

Sharpening Resource Allocation

Efficient resource allocation and robust governance have been key pillars in our growth journey. Our capital allocation policy is deeply rooted in the company’s longterm strategy, rigorously converting strategic priorities into resource planning and budgeting guidelines. This disciplined approach ensures a balanced capital allocation, considering growth, risk, and returns across various business segments. We optimize capital by tracking business evolution using predetermined metrics. Our policy incorporates clearly defined financial metrics to evaluate capital allocation for both organic and inorganic initiatives, including profitability and payback benchmarks.

We identified prime levers in our balance sheet, optimizing working capital and reducing overall borrowing. By improving receivables, payables, and inventory management, we liberated cash of over INR 11,513 Mn and reduced gross borrowing from over INR 42,441 Mn to less than INR 26,699 Mn.

20 LUPIN LIMITED | Integrated Report 2023-2024

We also focused on optimizing our capital work in progress, which has reduced from INR 12,380 Mn in the last year to INR 7,725 Mn in the current year through concerted efforts to minimize the productivity of spent funds, the lowest in many years. This helped improve our financial efficiencies and enabled us to leverage our existing assets for future growth.

Our commitment to process improvement is unwavering. By leveraging analytics and automation, we have enhanced productivity across the organization, ensuring that we extract maximum value from our investments and operations.

Tax Transparency and Governance

At Lupin, we prioritize compliance and transparency in taxation. Our annual Tax Transparency Report, introduced in FY23, highlights our responsible tax compliance, integrity, and commitment to ethical practices. This has contributed to improving our Dow Jones Sustainability Indices score and underscores our dedication to making a positive societal impact.

We have continued to digitize our tax related information, resulting in speed and agility in responding to queries from tax authorities and providing relevant supporting documents efficiently. We also ensured comprehensive assessments of all tax related compliance during acquisitions and the restructuring of entities to avoid future litigations.

ESG Commitment

Sustainability is at the heart of our business strategy. We have made significant progress in various aspects of ESG, from environmental stewardship to human rights

and patient-centric innovation. We invested INR 776 Mn in green and renewable energy projects, reducing our Scope 1 and 2 emissions by more than 20% year-on-year. Water recycling and conservation initiatives resulted in 44% of withdrawn water being recycled in FY24.

Focus on Human Capital

Our focus on the development of our employees and thrust on Diversity, Equity, and Inclusion has resulted in greater employee satisfaction across the organization. Programs such as GROW (Get Ready for Opportunities at Work) and ASCENT (Advanced Studies for Capabilities Enhancement) to upgrade the knowledge and skills of our manufacturing executives/managers have been moot points in enhancing efficiencies. Initiatives such as iMpact and Returnity (a program for returning parents) ensure an inclusive work environment.

Our Social Initiatives

Our social initiatives, such as the Lives and Livelihoods programs, were able to benefit over 1.57 Mn people in more than 4,771 villages across 24 districts in eight states in India. We are proud to share that two women beneficiaries from our programs were recognized at an international conference in Amsterdam.

Our patient-centric programs demonstrate our commitment to improving patient outcomes through accessibility and affordability; for instance, patients have better access to our anti-retro viral and anti-TB medications. We augmented production capabilities at our Aurangabad facility, resulting in a 40% increase in specialized anti-TB medication production. Our patient reach programs, such as Lungs On Care and FENO, have helped thousands of patients.

==> picture [522 x 284] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 21

We also understand that good governance is at the core of a responsible organization. Our Pledge program and governance policies help our employees and value chain partners adhere to the highest standards in business ethics. This year, we conducted an extended survey for Double Materiality to guide our internal risk review, with a good response from external stakeholders, resonating with our internal direction. To de-risk our value chain, we conducted an ESG assessment for 309 of our top tier 1 suppliers in raw material and packaging, providing opportunities for improvement.

Digital Transformation and Innovation

Our strategic embrace of digital transformation and Gen AI exemplifies our commitment to innovation. Our digital journey focuses on integrating advanced technologies - from automating supply chain processes to leveraging big data analytics for better decision making; digital solutions enable us to streamline operations and reduce our environmental footprint. This transformation extends to our R&D division, where digital tools accelerate drug discovery and development, helping us bring effective treatments to market faster.

Gen AI is at the heart of our innovation strategy. By harnessing the power of AI, we can analyze vast amounts of data. Our initiatives are designed with a strong ethical foundation, ensuring data privacy and security while promoting transparency and accountability. Our digital and AI-driven initiatives align closely with our ESG goals. Digital tools facilitate better stakeholder engagement, fostering trust and collaboration with our communities, partners, and regulators. We are dedicated to leveraging digital transformation and Gen AI to build a more sustainable, efficient, and patient-centric future.

We understand the critical need for a sophisticated risk management approach to successfully navigate regulatory shifts, emerging delivery methods, and the rapid pace of data driven innovation. In an environment marked by uncertainty, our ability to adapt to evolving expectations is paramount. Our robust risk management framework, overseen by the Board Committee, provides a cohesive and strategic response to risk mitigation across all our operations, fortifying our resilience and agility in a dynamic landscape.

paramount. Our cybersecurity strategy is integral to our risk management framework, employing advanced measures to safeguard sensitive data and ensure operational resilience. This proactive stance on cybersecurity underpins our commitment to maintaining the trust of our stakeholders and securing our digital transformation efforts.

Looking Ahead

As we move to FY25, we remain committed to transforming Hope into Healing. Our strategic investments in R&D, recent acquisitions, capex investments, technological advancements, and process improvements will continue to drive innovation and growth. We aim to introduce new products that bring affordable healthcare solutions to patients while creating value for our shareholders.

The turnaround in FY24 was a result of our focused approach and foreseeing the needs of a constantly evolving world. The strategy of moving toward complex molecules, which was initiated more than five years ago, is now yielding significant benefits. The pandemic taught us the significance of agility and robust supply chain processes, which have made a substantial difference to our operations. We have also refined our approach to asset utilization, ensuring that people, processes, and systems work harmoniously to maximize efficiency and shareholder value.

Resilience and flexibility are crucial for success, and we continue to adapt quickly to emerging trends and ensure that we provide excellent healthcare solutions through our innovative medicines and services.

Our customers, partners, shareholders, and communities have been essential to our journey, and we remain committed to serving them with integrity and excellence. As we move forward, we are excited about the opportunities ahead and remain steadfast in our mission to bring innovative healthcare solutions to patients worldwide.

Sincerely,

Ramesh Swaminathan

Executive Director, Global CFO & CRO and Head of API Plus SBU

Further, as cyber threats get more sophisticated, protection of our digital infrastructure has become

22 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [71 x 30] intentionally omitted <==

==> picture [147 x 37] intentionally omitted <==

==> picture [156 x 39] intentionally omitted <==

At Lupin, our purpose fuels our commitment to deliver highquality, affordable healthcare solutions, enhance the quality of life of our patients and uplift the communities that we serve. What inspires us is our commitment to transforming Hope into Healing.

Our Founder, Dr. Desh Bandhu Gupta, was a firm believer that science was a trigger to enhancing health and empowering communities. DBG, as Dr. Gupta was fondly called, founded Lupin in 1968, and soon expanded the scope to producing life-saving drugs for Tuberculosis. This early pivot towards serving patient needs has instilled in us the commitment to focus on good health for communities globally. Today, we take pride in carrying on this legacy by prioritizing innovation, quality, and accessibility of our healthcare solutions. We focus on key therapeutic areas such as cardiovascular health, tuberculosis, diabetes, respiratory, gastrointestinal disorders, and women’s health. We are serving over 1,420,000 patients in 100+ countries through our patient support programs.

Our core values drive us, in our endeavor to fulfil our mission to deliver life changing medicines that meet diverse patient needs globally. Our patient first approach is: we focus on developing medical products for specific therapeutic areas and actively engage in addressing all stages of the healthcare cycle, from prevention to diagnosis and rehabilitation.

==> picture [523 x 358] intentionally omitted <==

----- Start of picture text -----

H olistic O
perational
Growth Excellence
Improve
Patients
Lives
E nriching the P atient
Ecosystem First
Served patients in Reached
100 1,420,000+
countries patients
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 23

Transforming HOPE

We are united by our Purpose – ‘To improve our patients’ lives’.

Our aspiration is to transform Hope into Healing for patients globally through cutting-edge science and technology, supporting the needs of our patients, colleagues, and communities, while delivering sustainable returns and creating value for everyone. We are guided by our four strategic priorities as we move forward to being an innovation-led transnational pharmaceutical company, dedicated to improving patient outcomes and advancing healthcare worldwide.

Holistic Growth

Our people are our greatest assets, and as our business evolves, we focus on business growth and value creation by developing a future ready workforce.

Lupin’s Value Based Culture Talent Attraction and Retention We integrate our values throughout the employee Our learning and development framework promotes lifecycle, ensuring every team member understands continuous learning and aims to sharpen our core and embodies them. By implementing employeecompetitive advantages for operational excellence. centric policies and processes, we foster a culture of We are dedicated to creating an environment where growth and recognition. individuals can hone their talent, feel inspired, stay curious, and be empowered every day.

Operational Excellence

We are focused on efficiency extraction and productivity optimization to achieve excellence in our operations across different aspects of the business. This helps us streamline operations and maximize productivity.

Manufacturing Efficiency

We aim to enhance the efficiency and productivity of our R&D operations and manufacturing networks through targeted optimization initiatives across markets.

Environmental Excellence

We are expanding our renewable energy capacity, investing in biomass fuel boilers, recycling of incinerable waste, reducing carbon emissions, and adopting sustainable energy sources.

Capital Efficiency

By focusing on capital efficiency and maintaining a robust balance sheet through disciplined capital allocation, we optimize resources, minimize costs, and embrace an asset-right model.

Digital Transformation

Accelerating the adoption of digital technologies and data analytics supports our decisionmaking and operational agility.

24 LUPIN LIMITED | Integrated Report 2023-2024

Focus on Patient-Centricity

We strive to provide patients with meaningful healthcare experiences and outcomes, helping them to lead fulfilling lives. Our decisions are driven by what patients identify as most important to them.

==> picture [170 x 147] intentionally omitted <==

----- Start of picture text -----

Market
Expansion
----- End of picture text -----

==> picture [63 x 63] intentionally omitted <==

Accessibility and Affordability

==> picture [63 x 63] intentionally omitted <==

Innovation

==> picture [63 x 64] intentionally omitted <==

Diagnostics and Digital Therapeutics

In India, we aim to surpass market growth by expanding our sales force in existing therapeutic areas of dominance such as Cardiology, Pulmonology and Diabetes Management and diversifying our portfolio to include Gynecology, Dermatology, Urology, and Pediatrics to serve a broader patient base.

In the U.S., we focus on first-to-market launches of complex generics, including biosimilars. In the EMEA region, we strengthen our leadership in the Respiratory and Neurology segments.

We are creating new platforms in inhalation, injectables, and biosimilars to expand our offerings and enhance complex dosage forms beyond oral solids.

We work to ensure equitable access to medicines and healthcare worldwide, accelerating ARV and anti-TB registrations in low and middle income countries.

Through our partnership with the Tutudesk Foundation in South Africa, we aim to promote equitable access to education for 20 Mn children by 2025.

Innovation is the cornerstone of all our initiatives and is a core competency. We relentlessly pursue excellence through continuous improvements in all our projects, processes, and products. We continue to focus on developing innovative products that address medical needs and enhance patient outcomes.

Our strategy includes expanding the inhalation pipeline with accelerated development and green propellant programs and establishing an injectables growth strategy for early success.

Lupin has always been a pioneer in technology adoption for advancing patient care. To enhance our connect with patients, we are working on advanced Digital and Diagnostic Solutions.

Lupin Diagnostics, our trusted network of labs and collection centers, is accessible to patients for their pathology needs.

Lupin’s Lyfe solution is the first and only evidence-based Digital Therapeutics Solution for cardiac rehabilitation.

Lupin is revolutionizing healthcare through apps such as Fight TB for TB patients and LegalRx for medico legal information for healthcare professionals.

==> picture [9 x 380] intentionally omitted <==

We are also advancing AI in healthcare with our AI chatbots, such as Anya and SAHAYAK.

Atharv Ability, Lupin’s first Neurological Rehabilitation Center, located in Mumbai, serves as a cutting-edge outpatient facility for adults and children, for neurological rehabilitation.

Corporate Overview Statutory Reports Financial Statements

25

Support to Local Communities

Through the Lupin Foundation, we have established a sustainable, adaptable model of holistic rural development in India, serving over 1,405 villages across eight states in the year FY24.

De-risking Value Chain

Enriching the Ecosystem

We are committed to enriching the ecosystem by fostering strong collaborations with diverse stakeholders. By engaging with our suppliers and vendors and assessing their performance, including ESG compliance, we ensure mutual growth and adherence to high standards. We support healthcare professionals through continuous education and resources, enhancing their ability to provide exceptional patient care.

==> picture [64 x 63] intentionally omitted <==

To ensure supply continuity for high-value products, we engage with multiple suppliers, maintain buffer supplies, and utilize supply chain modeling to anticipate disruptions. Strategic investments in business intelligence and forecasting systems have enabled us to build a resilient global supply chain and ensure high service levels. We maintain consistent supplies by identifying and onboarding alternate vendors for critical APIs and intermediates.

We also work with our vendors by assessing their adherence to our ESG principles. We are in the process of building their capabilities for a sustainabile value chain.

Regulatory Compliance

We ensure compliance with all applicable norms and regulations of national and international regulatory bodies. Additionally, our operations adhere to internationally recognized standards and certifications. These include environmental management, occupational health and safety, quality management, pharmaceutical quality systems, and laboratories for testing and calibration.

26 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [267 x 32] intentionally omitted <==

==> picture [104 x 30] intentionally omitted <==

==> picture [244 x 24] intentionally omitted <==

----- Start of picture text -----

Input
----- End of picture text -----

==> picture [260 x 24] intentionally omitted <==

----- Start of picture text -----

Business Model
----- End of picture text -----

==> picture [41 x 11] intentionally omitted <==

==> picture [36 x 13] intentionally omitted <==

Our financial capital is invested strategically across different therapeutic areas for maximum capital efficiency

• Operating Expenses: INR 177 Bn

• CAPEX Allocation: INR 16.4 Bn

==> picture [36 x 13] intentionally omitted <==

==> picture [34 x 9] intentionally omitted <==

==> picture [6 x 8] intentionally omitted <==

Our people are our most important assets, and their commitment to patients brings out the best in them

==> picture [11 x 13] intentionally omitted <==

==> picture [10 x 13] intentionally omitted <==

==> picture [542 x 291] intentionally omitted <==

----- Start of picture text -----

• Global Lupin Family: 22,000+
• Expenditure on Benefits: INR 35 Bn
• Total Training Hours: 1,448,463
Holistic Operational
Our 15 state-of-the-art manufacturing facilities pave Growth Excellence
the way for our sustainable operations to address
patient needs
Our balanced use of natural resources maximizes
efficiencies while reducing the impact on environment
• Energy Consumption: 2.8 Mn GJ
• Water Withdrawal: 1.7 Mn KL Enriching the Patient
Ecosytem First
Our R&D Centers enable us with a competitive
advantage, while making therapies more accessible
• R&D Investment: INR 15.3 Bn
ufactu
s
n ri
s
a
I
n
e n
M g
tAcc nova
n P
n ti
i r
e
a
o
h o
ti n
c
a
C u
P
ppSuyl remten
----- End of picture text -----

• R&D Investment: INR 15.3 Bn

• R&D Team: 1400+

==> picture [5 x 6] intentionally omitted <==

==> picture [4 x 6] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [7 x 5] intentionally omitted <==

==> picture [7 x 5] intentionally omitted <==

• Global R&D Centers: 7

==> picture [38 x 10] intentionally omitted <==

==> picture [93 x 12] intentionally omitted <==

Our communities are extremely important stakeholders, and their enrichment is priority for us

• CSR Spend: INR 256 Mn

• Patient Outreach Programs: 11

As a leading transnational pharmaceutical company, we play an important role in contributing to the health and well-being of people. Our sustainable business model creates long-term value for our key stakeholders.

Corporate Overview Statutory Reports Financial Statements 27

==> picture [244 x 24] intentionally omitted <==

----- Start of picture text -----

Output
----- End of picture text -----

==> picture [41 x 11] intentionally omitted <==

==> picture [36 x 13] intentionally omitted <==

• Revenue from Operations: INR 200 Bn

==> picture [260 x 24] intentionally omitted <==

----- Start of picture text -----

Outcome
----- End of picture text -----

==> picture [28 x 28] intentionally omitted <==

==> picture [29 x 28] intentionally omitted <==

==> picture [29 x 28] intentionally omitted <==

A growth centric, competitive and positive balance sheet

• EBITDA: INR 39.3 Bn

• Dividend Paid: INR 1,820 Mn

==> picture [36 x 13] intentionally omitted <==

==> picture [34 x 9] intentionally omitted <==

• Employee Satisfaction Score: 80%

A diverse and holistic workforce

==> picture [29 x 28] intentionally omitted <==

==> picture [29 x 28] intentionally omitted <==

==> picture [29 x 28] intentionally omitted <==

• Gender Diversity: 9%

• Turnover: 18%

==> picture [36 x 12] intentionally omitted <==

==> picture [64 x 10] intentionally omitted <==

A modern and efficient manufacturing operation

==> picture [28 x 28] intentionally omitted <==

• All sites cGMP compliant

• Manufacturing Capacity (Million Units): 20,514

• Total Product Portfolio: 1200+

==> picture [36 x 13] intentionally omitted <==

==> picture [34 x 10] intentionally omitted <==

• Emission Reduction: 21%

• Water Recycling: 44%

==> picture [36 x 12] intentionally omitted <==

==> picture [50 x 10] intentionally omitted <==

• Patents Filed in FY24: 73

• Patents Granted in FY24: 110

• Filings in FY24: 33

• Approvals in FY24: 63

==> picture [38 x 10] intentionally omitted <==

==> picture [93 x 12] intentionally omitted <==

• Total CSR Beneficiaries: 233,383

• Total Patients Reached: 1.4 Mn+

A climate resilient approach to our business

Pushing the boundaries for development of new treatments

Responsible supply chain and strengthening of business alliances

==> picture [29 x 28] intentionally omitted <==

==> picture [29 x 28] intentionally omitted <==

==> picture [29 x 29] intentionally omitted <==

==> picture [29 x 28] intentionally omitted <==

==> picture [28 x 27] intentionally omitted <==

==> picture [28 x 28] intentionally omitted <==

==> picture [29 x 28] intentionally omitted <==

==> picture [29 x 29] intentionally omitted <==

==> picture [28 x 29] intentionally omitted <==

==> picture [28 x 27] intentionally omitted <==

==> picture [26 x 27] intentionally omitted <==

==> picture [29 x 29] intentionally omitted <==

==> picture [29 x 29] intentionally omitted <==

==> picture [29 x 28] intentionally omitted <==

==> picture [28 x 28] intentionally omitted <==

==> picture [28 x 28] intentionally omitted <==

Through our current actions and initiatives, we have been able to map the tangible outcomes of each capital to 11 unique United Nations Sustainable Development Goals (SDGs), out of a total of 17 SDGs. In the coming years, we will formalize our impact assessment using the impact metrics prescribed by the SDGs.

28 LUPIN LIMITED | Integrated Report 2023-2024

For Lupin, “Value” centers around our patients. Hence, our value creation model is built on the foundation of delivering innovative healthcare solutions that improve patient outcomes, while ensuring sustainable growth for our shareholders. By integrating cutting-edge research, robust development pipelines, efficient production, and ethical marketing practices, we strive to provide longterm healthcare outcomes to our patients.

“VALUE” for us is synonymous with Affordable, Accessible, High-quality, and Innovative therapies that meet patient needs.

Our patient-centric model revolves around unlocking the highest value for our patients in an effective and efficient manner. Our HOPE strategy blends high-quality and innovative therapies for patients worldwide, with accessibility and affordability being critical components.

We constantly invest substantial resources in research and development, in line with our commitment to innovation. By leveraging extensive data and healthcare trends, we identify disease areas and regions needing attention. Our teams undergo rigorous training and development programs and participate in monthly LeadX

talks where CXOs engage in discussions with their teams to foster collaboration. Our R&D teams associate with leading academic institutions and partner firms to explore new therapeutic areas and develop complex medicines. Utilizing advanced technologies such as AI, machine learning, and biotechnology, we accelerate the drug discovery process and enhance the efficacy and safety of our products.

Our emphasis on high-value therapeutic areas, combined with strategic partnerships, drives robust revenue growth. Our next-generation manufacturing facilities adhere to the highest quality and compliance standards to support this. While pursuing growth, we prioritize integrating sustainability in all facets of our business model. We continue to invest heavily in renewable energy green chemistry to make our processes more circular and minimize our environmental impact, creating sustainable products. For instance, we are working towards replacing standard propellants with green propellants in our inhaler products and will commence supply of these products in advanced markets.

By maximizing inputs efficiently, we deliver sustained value to our stakeholders and fulfill our commitments to the United Nations Sustainable Development Goals (SDGs). This reflects our dedication to driving sustainable and equitable development across all aspects of our operations as we strive for excellence.

==> picture [558 x 327] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 29

Patient-Centric Sustainability Approach

We aspire to deliver the best to our patients, and we understand that ESG is a vital lever to achieve that. Hence, we have taken immense care to integrate sustainability into the very fabric of our Hope strategy. Over the last five years, we have made significant strides in our Environmental, Social, and Governance journey, and our recent initiatives reflect this.

This year is pivotal in our ESG journey as we accelerate towards being a patient-centric sustainability organization. We have adopted Science-Based Targets to drive our decarbonization goals and aligned our objectives with those of the latest climate science targets, to reduce our carbon footprint. Additionally, our new biodiversity commitment reflects our recognition of the interconnectedness of human health and the health of our planet. We are implementing innovative practices to protect and enhance biodiversity across our operations, ensuring our growth is harmonious with nature.

Recognizing that our responsibilities extend beyond environmental stewardship, we have also undertaken a comprehensive assessment of human rights across all our operations. This initiative ensures that we are not only compliant with global standards but also proactive in promoting fair labor practices, safe working conditions, and the well-being of all individuals in our value chain. By addressing human rights issues proactively, we foster a culture of respect and equity within our organization and beyond.

We stand high on our commitment to not patent or enforce IP rights on diseases covered by ATMI-2021, especially in LMIC countries. Our generics offer significant cost savings to our patients, contributing to USD 373 Bn in savings to patients in the U.S. and reducing healthcare expenditures in South Africa by 35%. Moreover, our patient assistance programs in India have reached more than 30,000 patients in the last year alone. This was achieved via focused initiatives such as SAARTHI, Jeet and JAI programs. Additionally, our offerings from Lupin Diagnostics and Lupin Digital Health ensure that diagnostics and digital therapeutics are more accessible to patients. Our platforms, such as Lyfe and Atharv Ability, provide complete care to patients in cardiology and neurological rehabilitation. We have also unlocked the power of AI through solutions such as SAHAYAK and Anya, helping respond to queries on various topics, including diabetes, hypertension and TB.

We understand the power of collaboration and actively engage with suppliers, partners, and stakeholders to ensure our environmental and social objectives are shared in pursuance of our ESG goals.

As we move ahead in our ESG journey, we remain committed to transparency, accountability, and continuous improvement. Our vision is to lead by example, demonstrating that sustainable business practices are not only possible but essential for long-term success and the well-being of our planet and people.

==> picture [559 x 327] intentionally omitted <==

30 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [406 x 61] intentionally omitted <==

==> picture [383 x 67] intentionally omitted <==

==> picture [25 x 21] intentionally omitted <==

==> picture [31 x 22] intentionally omitted <==

==> picture [31 x 22] intentionally omitted <==

==> picture [34 x 21] intentionally omitted <==

==> picture [33 x 21] intentionally omitted <==

==> picture [32 x 22] intentionally omitted <==

Global Trends in Pharmaceutical Industry India North America Europe, Middle East and Africa Growth Markets API Plus

Corporate Overview Statutory Reports Financial Statements 31

32 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [352 x 32] intentionally omitted <==

==> picture [444 x 42] intentionally omitted <==

The pandemic has brought in its wake, profound changes in the way the global pharma industry operates. The focus is on securing local pharma supplies while retaining the alignment towards accessibility and affordability. At the same time, a nationalistic fervor and a more patientcentric approach are also discernable.

Global medicine consumption is projected to surge, with an estimated 3.8 trillion daily doses by 2028, with varying growth rates across different regions. Specialty medications are poised to dominate global spending, exceeding 40% over the next four years (Source: Deloitte Report), with developed markets leading the charge. Key therapeutic areas such as oncology, immunology, diabetes, and obesity are set to drive substantial growth,

fueled by ongoing innovation and patent expirations. Oncology, in particular, is anticipated to expand at a robust 14-17% through 2028.

Due to an unprecedented strain on healthcare infrastructures globally, the price and accessibility of generics have become critical. This has led to a renewed emphasis on efficiency, process innovation, and cost savings. There is a further shift towards biosimilars and a move up the value chain through complex generics and building specialty pipelines, all of which are expected to lead to sustainable business streams and maximization of long-term profit margins. To achieve this, digital transformation has emerged as a key strategy, with Gen AI and other AI technologies driving innovation.

CAGR 2024-2028

Region Global Developed 10 Developed Other developed Pharmerging Lower-income Countries	Original Brands 6-9% 6-9% 6-9% 6-9% 10-13% 3-6%	Non-original Brands 8-11% 4-7% 4-7% 4-7% 12-15% 4-7%	Unbranded Generics 3-6% 1-4% 0-3% 4-7% 9-12% 3-6%	Others 3-6% 1-4% 0-3% 4-7% 5-8% 4-7%	Total 6-9% 5-8% 5-8% 5-8% 10-13% 3-6%

==> picture [500 x 196] intentionally omitted <==

----- Start of picture text -----

Mental Health
Size of bubble:
Spending in 2028
10%
Vaccines ex Flu $350Bn
and COVID $100Bn
CNS
$25Bn
Pain
Cough Cold ind flu
Vaccines & Antivirals Dermatology Ophthalmology
Musculoskeletal Immunology
5%
Infectious
Diseases
Blood coagulation
GU Sexual Respiratory
Health Lipid
Regulators Diabetes
Cardiovascular
GI Products
HIV Antivirals
0%
-5% 0% 5% 10% 15% 20%
Forecast 5-yr CAGR 2024-2028
----- End of picture text -----

Historic 5-yr CAGR 2019-2023

Source: IQVIA report

Corporate Overview Statutory Reports Financial Statements 33

Indian pharmaceutical companies have displayed mixed reactions to the changing economic environment. Fully integrated companies with global business models have benefited from tailwinds, while others are grappling with various challenges. These include intellectual property issues, regulatory compliance hurdles, governmentimposed pricing pressures, rising raw material costs, and supply chain disruptions due to geopolitical conditions. In the U.S., despite a relatively more benign pricing environment, competitive intensity remains very high with reduced pricing leverage for manufacturers of generics, impacting profitability.

The pharmaceutical industry today is at the crossroads of transformation and challenge, driven by technological advancements, shifting global dynamics, and evolving market pressures. Navigating these complexities calls for agility and innovation to capitalize on growth opportunities while mitigating risks in an increasingly interconnected global landscape.

Focus on High-value Specialty Generics

Specialty drugs used to treat rare and chronic diseases such as cancer and multiple sclerosis are driving the demand for more affordable generic versions. This segment is expected to grow at a 12.1% CAGR (Source: KPMG Report) through 2024.

Partnerships for Biosimilars

The biosimilars market is anticipated to expand at a 12.5% CAGR (Source: IQVIA Report), offering a less expensive alternative to off-patent drugs. Pharmaceutical companies are increasingly partnering with Contract Research Development Manufacturing Organizations to expedite time to market.

AI and Digital Transformation

GenAI, other AI technologies, and digital transformation tools are poised to enhance efficiencies and drive process innovation across the life sciences value chain. A significant portion of the value from AI in life sciences is expected to come from R&D, manufacturing, supply chain, and commercial areas.

Regulators’ Focus on Patient-Reported Outcomes

The U.S. FDA is increasingly interested in understanding patients’ health status through patient-reported outcome measures, prompting pharma companies to include these measures in their assessments.

Furthering Commitment to ESG

Pharmaceutical companies are setting ambitious netzero targets, prioritizing improvements in global health infrastructure, and fostering workforce diversity. Future efforts will integrate AI and blockchain for sustainability and transparency, driven by stricter regulations and investor demands.

Supply Chain Redesign

The pandemic exposed vulnerabilities in the pharmaceutical supply chains, prompting manufacturers to diversify sources and explore additional revenue through forward-backward integration.

Geopolitical uncertainties continue to cast shadows over the global economic landscape, posing potential risks. In the U.S., the proposed Biosecure Act has potential significant implications for companies sourcing products from China, especially for the U.S. market. The ongoing Middle East conflict has exacerbated supply routes, mainly from the Red Sea, leading to an increase in freight costs as well as higher inventory costs, thereby placing greater emphasis on the management of delivery schedules.

Regulatory Governance in AI

As AI adoption accelerates, regulatory bodies are poised to enforce tighter governance to ensure accountability and deliver value. By 2025, stricter regulations are expected to shape AI deployment in the pharmaceutical industry, necessitating compliance and transparency. These regulations will play a critical role in safeguarding patient data and ensuring ethical use of AI technologies.

Personalized Patient Experience

Pharma companies are exploring novel ways to customize the patient’s journey, improving patient outcomes and experiences. Advances in genomics and biotechnology are paving the way for personalized medicine, where treatments are tailored to individual genetic profiles.

Our Approach

Lupin is strategically positioned to navigate the evolving pharmaceutical landscape, focusing on highgrowth therapeutic areas, regional market expansion, investments in innovative therapies, and adoption of advanced technologies. With a strong pipeline in the respiratory segment and complex injectables, Lupin remains competitive by constantly investing in research and development to bring innovative products to market. Our established presence in key emerging markets such as the Philippines, South Africa, Brazil and Mexico and ongoing expansion in Europe and other markets such as Australia enable us to capitalize on regional growth trends, enhance distribution networks, and augment local manufacturing capacities. These initiatives align with global industry trends, reinforcing Lupin’s commitment to delivering value to stakeholders and improving patient outcomes worldwide, ensuring sustained growth and value creation.

Despite a challenging environment, Lupin has achieved robust double-digit growth. A strong ESG framework is at the core of all our initiatives, aligning with our business strategy. We will continue our strategic focus on complex generics, particularly inhalation and complex injectables, to achieve our objectives. Lupin remains committed to being a trusted partner for high-quality, affordable medicines, serving all patients and communities.

34 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [90 x 32] intentionally omitted <==

==> picture [522 x 65] intentionally omitted <==

----- Start of picture text -----

7 [th] Rank 10% Lupin Brands
in Indian Five-Year Ranks in the Top
Pharma Market CAGR 300 Brands
----- End of picture text -----

Lupin’s performance in the Indian pharmaceutical market has consistently been on an upward trajectory, with its India business outperforming the market. This success can be attributed to our strategic expansion into chronic and fast-growing therapies, leading to revenues of INR 66,564 Mn, accounting for 34% of Lupin’s total revenue. The company’s focus on delivering highquality and affordable drugs has established it as a

preferred partner for medical practitioners in India. Strong customer engagement has also been a significant factor in strengthening its presence, with Lupin being ranked seventh in the Indian Pharmaceutical Market. In FY24, Lupin’s branded generics sales increased by 9.6%, achieving a five-year CAGR of 10.4%, surpassing the market’s growth rate of 9.9%. Consequently, our market share increased to 3.4% in FY24.

==> picture [29 x 32] intentionally omitted <==

==> picture [76 x 19] intentionally omitted <==

==> picture [163 x 14] intentionally omitted <==

==> picture [414 x 197] intentionally omitted <==

----- Start of picture text -----

80,000
70,000
60,000
50,000
40,000
30,000
39,675 43,506 49,324 54,531 56,651 65,241 69,668 66,564
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
----- End of picture text -----

Lupin’s India Region Formulations business primarily focuses on the chronic segment, contributing 59.8% of its total revenue, with Lupin holding the fifth position in the industry. The top five therapy areas in India - Cardiology, anti-diabetes, Respiratory, Gastrointestinal, and antiinfective, collectively account for 73.6% of Lupin’s sales. Lupin is a leader in the anti-TB segment and ranks second in the Respiratory segment. The Cardiology and anti-diabetes segments generate approximately INR 16,000 Mn and INR 15,000 Mn, respectively, and Lupin ranks third in both these growing areas. The Respiratory therapy segment has surpassed INR 10,000 Mn, and the

Gastro+Hepato therapy segment has moved upto INR 7,000 Mn.

In the Respiratory segment, we launched the world’s first Fixed Dose Triple Combination drug, Vilfuro-G, for managing Chronic Obstructive Pulmonary Disease, a leading cause of death and disability. Approved as a Dry Powder Inhaler by the Drug Controller General of India, this innovative therapy brings hope to over 37 million COPD patients in India. This milestone underscores our commitment to expanding our respiratory portfolio and providing essential healthcare solutions to transform lives.

Corporate Overview Statutory Reports Financial Statements 35

Our Brands in the Top 300 Brands Category of the IPM

==> picture [136 x 37] intentionally omitted <==

----- Start of picture text -----

Gluconorm-G
----- End of picture text -----

==> picture [136 x 37] intentionally omitted <==

----- Start of picture text -----

Budamate
----- End of picture text -----

==> picture [136 x 37] intentionally omitted <==

----- Start of picture text -----

Huminsulin
----- End of picture text -----

==> picture [137 x 36] intentionally omitted <==

----- Start of picture text -----

Ivabrad
----- End of picture text -----

==> picture [137 x 36] intentionally omitted <==

----- Start of picture text -----

Rablet-D
----- End of picture text -----

In the anti-diabetes segment, Lupin experienced a steady growth rate of 5.1%, while the Cardiology segment achieved a growth rate of 13.4%, outperforming the market growth rate of 10.0%. In the Respiratory segment too, Lupin’s growth rate of 13.8% was significantly higher than the market growth rate of 2.7%.

Lupin’s unwavering commitment to fostering more robust connections with medical practitioners and driving better patient outcomes is evident through its

proactive initiatives. The company has also constantly focused on curating unique scientific platforms that facilitate collaboration and partnerships with leading universities worldwide to enhance the expertise of doctors.

By consistently aligning its business strategies with foresight on future market trends and focusing strongly on innovation, Lupin continues to reinforce its position as a leading player in the Indian pharmaceutical market.

Therapy-wise Market Share

Therapy	Rank	Market Share
Anti-TB	1	60.7% (2.0%)
Anti-Diabetic	3	7.8% (-0.4%)
Cardiology	3	6.1% (-0.1%)
Respiratory	2	6.1% (0.3%)
Gynecology	9	3.7% (0%)
Neuro/CNS	6	2.7% (-0.1%)
Gastrointestinal	10	2.8% (0%)

Gastro Intestinal 7% Anti-Infectives 6% Gynaec 6% Neuro/CNS 4% Anti-TB 4% Pain/Analgesics 3% Vitamins/Minerals/ Nutrients 5%	3%						Cardiac 24% Others 5% Anti-Diabetic 22% Respiratory 14%

36 LUPIN LIMITED | Integrated Report 2023-2024

Patient Support Programs

NovaShakti

NovaShakti empowers women against heart disease through awareness, diagnosis, and care, engaging over 50,000 patients and 7,000 healthcare professionals. Through an association with Olympian MC Mary Kom, NovaShakti promotes heart health through educational screening. A strong social media presence has helped in reaching out to a large segment of women and creating awareness.

==> picture [102 x 42] intentionally omitted <==

JEET

Jeet is a reward-based Patient support Program that improves heart health through Awareness, Adherence, and Assistance. It encourages healthy habits through medication reminders and health quizzes. Jeet, recommended by healthcare practitioners, has empowered a number of patients and practitioners and will continue to focus on reaching out to many more.

Joint Airways Initiative

JAI is India’s first digital asthma educator platform, aiding nearly 38 Mn asthma patients with the right way to use inhalers. Over 12,000 patients have enrolled in the last year.

==> picture [55 x 33] intentionally omitted <==

==> picture [102 x 42] intentionally omitted <==

Humrahi

Humrahi is a leading patient support program for diabetes management, offering services in 12 languages, including a chatbot, tracking tools, counseling, and complimentary tests. Humrahi onboarded over 11, 862 patients in the last year, who were supported through educational camps and screenings.

==> picture [114 x 34] intentionally omitted <==

Say Yes to Life

SAARTHI is a support program for mental health professionals and patients, available in multiple regional languages. The platfrom improves treatment outcomes and offers coping strategies for mental health issues such as anxiety and stress, enabling open discussions with psychiatrists.

AI Screening for Breast Cancer

Niramai’s Thermalytix™ uses AI for early breast cancer detection, significantly improving accuracy over traditional methods. Lupin has partnered with Niramai and conducted over 90 screening camps in the past year.

==> picture [148 x 35] intentionally omitted <==

==> picture [34 x 48] intentionally omitted <==

Prothsahan

Prothsahan promotes breast cancer awareness through educational initiatives and partnerships with public figures and medical experts. Interactive sessions with various sections of the community have been able to help with education on symptoms and early detection.

==> picture [23 x 34] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 37

Leveraging Digital

In its efforts to drive positive patient health outcomes globally, Lupin has been at the forefront of leveraging innovative digital strategies to enhance customer engagement. Multichannel initiatives, such as Lupin Konnect and DigiEngage, enable seamless interaction with our core doctors through digital and telecommunication channels, in addition to traditional face-to-face engagements. Through evidence-based practices and clinical guidelines, doctors have access to updates on therapeutic breakthroughs and treatment methods, helping them deliver optimal patient care to improve lives.

Lupin Konnect plays a vital role in enhancing brand awareness among untapped General Practitioners. Through our omni-channel engagements, GPs are constantly kept abreast of the latest scientific updates, specifically tailored to the core Lupin brands. This targeted outreach allows us to build stronger relationships with them and improve brand recall.

Furthermore, we have implemented SmartRep, which is specifically designed for our field force and serves as a comprehensive analytics platform to obtain actionable insights. This platform is fully operational across all divisions within India Region Formulations, seamlessly integrating various resources such as sales performance metrics, coaching modules, a knowledge hub, chemist data, and more. This seamless integration empowers our teams with the necessary tools to provide exceptional service and support to healthcare professionals.

Currently, our adoption rate stands at an impressive 97%, highlighting the effectiveness of this platform in enhancing our field force’s capabilities. Going forward, we will enhance our efforts through AI and Machine Learning based insight programs, to further support our field force.

Lupin Gurukul is a centralized repository for brand plans and marketing collateral, providing easy access and reference for our team members. This platform enhances efficiencies, reduces approval time and enables team members to make informed decisions.

Additionally, we have developed Anya, an AI-powered chatbot that delivers medically verified responses and provides valuable insights. Anya is available in 6 languages and covers a wide range of therapy areas, including Cardiology, Diabetes, Respiratory, Dermatology, Tuberculosis, Urology, Orthopaedics, and more. With over 32 lakh queries successfully addressed, Anya has assisted over 5 lakh+ users with not just text responses but infographics as well.

Our dedication to digital engagement is exemplified by our active presence on social media platforms to connect with our audience for positive outcomes. Lupin India has witnessed a remarkable 16% increase in followers, and the Shaping Health platform has seen a notable 10% rise compared to the previous year.

As we continue to grow our online community, we are committed to delivering relevant and informative content that resonates with our followers and reinforces our position as a leader in the digital space.

==> picture [522 x 318] intentionally omitted <==

38 LUPIN LIMITED | Integrated Report 2023-2024

LupinLife

LupinLife Consumer Healthcare, our OTC business, has achieved remarkable growth since its inception in 2017, expanding into multiple categories, including gastro, health supplements, women’s health, and pain management. With a 5-year CAGR outpacing the OTC category, our flagship brand, Softovac®, leads the bulk laxative segment with a 44% market share. Following its transition to a consumer healthcare brand, Aptivate® has carved a niche in child healthcare, demonstrating strong performance. We run innovative engagement programs such as the Aptivate Achhi Bhook Quiz and Aptivate Run.

Strategic brands such as Vimpro and Vovilup strengthen our portfolio, which is supported by an agile retail network and digital marketing strategies. LupinLife continues to grow at 2x the OTC category, achieving an 18% CAGR since FY20, reflecting our commitment to consumer relevance and operational excellence, aided by a robust retail network, digital marketing strategies, and sales force automation.

==> picture [251 x 312] intentionally omitted <==

==> picture [247 x 146] intentionally omitted <==

----- Start of picture text -----

770 988 1155 1261 1482
FY20 FY21 FY22 FY23 FY24
Sales in Mn
5 year CAGR 18%
----- End of picture text -----

==> picture [251 x 338] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 39

==> picture [162 x 42] intentionally omitted <==

==> picture [122 x 58] intentionally omitted <==

Lupin Diagnostics Limited

Since commencing operations in 2021, Lupin Diagnostics has established 38 processing labs across West, East, and South India. By 31 March 2024, we surpassed our revenue of INR 600 Mn, serving over 1.2 million patients. Recognizing that 70% of treatment decisions in India are based on diagnostic tests, we ensure accuracy through stringent quality control and benchmarking against international standards. Over 50% of our labs are NABL accredited, one of the highest in the industry, with a goal to achieve 100% by FY25.

We are expanding in West and East India, focusing on tier 3 and tier 4 cities, and have broadened our portfolio to include oncology, neurology, and genomics. Our network of 750 collection centres support this growth. To maintain sample integrity, we employ over 100 field executives for temperature-controlled transportation. We also offer value-added services such as dynamic smart reports, health monitoring tips, and trend analysis for chronic disease management, enhancing patient care and treatment outcomes.

Lupin Digital Health

In FY23, Lupin launched Lupin Digital Health (LDH), marking its foray into the burgeoning field of Digital Therapeutics (DTx). LDH introduced Lyfe™, India’s first evidencebased remote cardiac rehabilitation program with Coronary Artery Disease and Acute Coronary Syndrome patients, aimed at reducing heart attack risks and improving patients’ quality of life. The program features a multidisciplinary team offering comprehensive care.

In FY24, we expanded our offerings with the launch of Lyfe HF, catering specifically to patients dealing with heart failure. Over the past year, thousands of patients across 200-plus cities and towns have benefited from our Lyfe programs. We secured an exclusive collaboration with the American College of Cardiology and obtained ISO 27001:2022 certification, along with Central Drugs Standard Control Organization approval for our platform as a Class C Software as a Medical Device.

Looking ahead to FY25, we plan to launch a product targeting early stage heart disease risk factors, emphasizing prevention through lifestyle modifications. Lupin Digital Health is committed to leveraging digital innovations to transform healthcare in India.

==> picture [522 x 309] intentionally omitted <==

40 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [88 x 91] intentionally omitted <==

Atharv Ability

Atharv Ability, Lupin’s first Neurological Rehabilitation Center, serves as a cutting-edge outpatient facility for both adults and children, and addresses the crucial need for neurorehabilitation in India. Research highlights that multidisciplinary rehabilitation can enhance functional recovery by 30-40% and improve the quality of life for patients. The center specializes in treating post-stroke, traumatic brain injury, spinal cord injury, and various other neurological conditions, including Parkinson’s, cerebral palsy, and multiple sclerosis.

Offering a wide range of treatments under one roof, Atharv Ability’s services include neuro physiotherapy, advanced robotics therapy, speech and language therapy, occupational therapy, cognitive therapy, aqua therapy, pain management, spine rehabilitation, and pediatric neurological rehabilitation. In FY24, Atharv Ability treated over 2,400 patients and conducted nearly 30,000 treatment sessions, including 10,000+ physiotherapy sessions, 2,200+ robotics therapy sessions, and 1,800 aqua therapy sessions.

Since its launch, Atharv Ability has meaningfully touched the lives of over 5,000 patients, exemplifying our commitment to enhancing the lives of those with neurological disabilities, ensuring they regain their abilities and reintegrate into society.

==> picture [522 x 415] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 41

==> picture [522 x 494] intentionally omitted <==

Outlook

Lupin’s India business continues to move forward and sharpen its focus on chronic and high-growth therapy areas, leveraging its strong market position and expanding its portfolio of high-quality, affordable drugs. By continuing to foster strong relationships with doctors, patients, distribution channels and consumers, and leveraging its digital platforms, Lupin aims to enhance its customer engagement and support.

Our digital initiatives will be further enhanced with the integration of advanced technologies such as AI and machine learning to provide actionable insights and optimize performance. Additionally, we will continue to expand our digital marketing efforts to strengthen our brand presence and reach a broader audience. Our commitment to innovation and excellence will ensure that Lupin remains at the forefront, driving positive health outcomes and delivering value to our stakeholders.

42 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [259 x 32] intentionally omitted <==

==> picture [522 x 65] intentionally omitted <==

----- Start of picture text -----

3rd Rank 37% >20
in the U.S. by of Lupin’s Overall Products have Market
Prescriptions FY24 Sales Share Greater than 50%
----- End of picture text -----

==> picture [42 x 25] intentionally omitted <==

==> picture [93 x 14] intentionally omitted <==

The U.S. pharmaceutical market remains the largest globally in terms of dollar value, with a net market value of USD 446 Bn in 2023 and a net CAGR of 5.3% over the last five years (Source: IQVIA Institute for Human Data Science, Global Use of Medicines: Outlook to 2028, January 2024). It is characterized by a significant disparity between branded and generic medicines. Despite accounting for only 8.8% of prescriptions, branded medicines constitute a staggering 85.7% of the market value. On the other hand, unbranded generics dominate in terms of prescription volume, representing 88.4% of prescriptions, however contributing to only 8.0% of revenues. Branded generics serve as a middle ground, accounting for 6.3% of total net sales and 2.8% of prescriptions (Source: IQVIA – US Generics and Biosimilars Trends).

Biologics is another critical component of the U.S. pharmaceutical landscape, currently accounting for 46% of drug spending and exhibiting a very high growth rate (Source: IQVIA – Global Pharma Market Snapshot - 2024). This growth trajectory highlights its increasing importance in the market, a trend that is likely to continue as more biologic treatments gain approval and adoption.

The U.S. market is on the cusp of significant transformations due to impending losses of exclusivity. This is expected to reduce brand spending by USD 145 Bn over the next five years. Small molecule drugs will be the most affected, with an anticipated reduction in brand spending of USD 106 Bn through 2028, more than double the impact over the last five years. Biologics will also face substantial spending reductions, estimated at USD 39 Bn over the same period, as biosimilar market dynamics mature and major products encounter competition (Source: IQVIA Institute for Human Data Science, Global Use of Medicines: Outlook to 2028, January 2024).

Lupin’s Evolution, Performance and Highlights

In this dynamic and competitive environment, Lupin has consistently played a pivotal role over the last few years by providing high-quality, safe, and affordable medicines to millions of Americans. Despite operating in a challenging environment characterized by high price deflation due to buyers’ consolidation, supply chain disruptions, and rising competition, we have displayed not only a high degree of resilience, but also forged ahead in terms of sales. Our market strategy epitomizes value creation, which helps us thrive wherever we operate.

==> picture [522 x 257] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 43

==> picture [522 x 452] intentionally omitted <==

Our relentless focus on sustainable growth, portfolio diversification, and profitability drives every decision we make. A major growth engine over the last 5 years, both from a top as well as bottom line standpoint, has been the inhalation segment, which has witnessed significant growth. The business, which represented less than 2%, witnessed substantial growth, contributing to almost 40% of the overall U.S. net sales. We expect to sustain the business at high growth levels, ramping up the inhalation business and focusing on new product launches in FY25.

As of March 2024, Lupin is the third-largest pharmaceutical company in the U.S. by filled prescriptions, with a 5.2% market share in generic scripts. Thanks to our portfolio of 150+ commercialized products, a ~30% market share per marketed product. With 100+ products in the pipeline across a wide range of therapeutic areas and dosage forms, we continue to maintain our business momentum, auguring well for the healthcare ecosystem in the U.S.

During the last fiscal year, the U.S. market contributed to 34% of the overall company sales, with INR 67,628 Mn in net revenue, strong growth of 30% over FY23, higher than other geographies. Several key products have contributed to this noteworthy performance. Our strategic pivot to complex generics has yielded remarkable results.

The launch of Tiotropium (Gx Spiriva) in August 2023, the first Dry Powder Inhaler from India for the U.S. market, achieved consistent substitution rates exceeding 30%, underscoring its acceptance and demand. In line with prior years, Albuterol continued to be a top-selling product for Lupin and consistently captured 20%+ of the total reference market. Albuterol and Tiotropium are expected to be major drivers of financial performance through the next few years. Our strategy of integrating inhalation products such as Xopenex® and Brovana® enhances our offerings in the crucial respiratory segment. It will cement Lupin’s position as a top player in the U.S. respiratory space, an area of strategic focus for the

44 LUPIN LIMITED | Integrated Report 2023-2024

company. The successful launch of gSpiriva (Tiotropium) has not only positioned us as a leader in oral solid dosage forms, but has also set the stage for pioneering biosimilars.

Notably, Lupin currently ranks as the second-largest generic pharmaceutical company by sales in the U.S. respiratory segment, reflecting a strong foothold in and focus on this critical therapeutic area. Beyond inhalation products, strong top and bottom line contributions also came from other significant products such as Lisinopril and Bupropion, as well as gastro-intestinal products Gx GaviLyte and Gx Suprep, both of which are manufactured in our Somerset, NJ, plant. In addition to the introduction of Tiotropium, the U.S. business also benefited from 10 more new product launches in FY24, including Darunavir, Gx Prolensa, and Diazepam Rectal Gel. The combination of

Outlook

While the downward pricing pressure on oral solids has moderated from double-digit declines in FY23 to mid-high, single-digit percentages in FY24, Lupin’s focus is to strategically shift from traditional oral solid formulations towards complex and differentiated products. During the last year, more than 80% of our new product revenues in the U.S. came from nonoral solid products, platforms such as inhalation and injectables, characterized by less pronounced generic price deflation and reduced competitive pressure. We will build upon scaled product platforms in legacy oral and ophthalmic segments and drive our business around the commercial portfolio over the coming years. To drive this shift, around 70% of the R&D spend over the next five years is projected to be utilized for the development of complex assets in the inhalation and injectables spaces.

Beyond unlocking additional value from the inline commercial portfolio, we will ramp up our introduction of key oral and ophthalmic “first” products as well as a number of injectable assets. These include products such as Liraglutide (Victoza, Saxenda) and Glucagon, all of which are expected to contribute to robust growth in the near and medium term.

In the long term, a strong pipeline of 30+ injectables and 20+ inhalation products, comprising a number of first-to-file, exclusive first-to-file and first-tomarket opportunities, will enable a more sustained growth as we continue to pivot to more complex

new product introductions, skillful commercial and supply chain execution, and ongoing measures to enhance operational efficiencies have helped move up our margins over the course of the last year, contributing to a remarkable financial performance. This, in turn serves as a key lever for value creation for all our stakeholders.

Driven by utmost attention to quality across all aspects of the supply chain, right from the procurement of APIs and KSMs to production, skillful commercial execution on inline products, relentless innovation across all therapeutic areas and dosage forms, as well as continuous operational improvements and cost optimization efforts, Lupin U.S. is projected to maintain a leading position and propel the overall company to sustained success in the coming years.

products, in particular inhalation and complex injectables. In this context, Lupin Inhalation Research Center (LIRC), our state-of-the-art, inhalation dedicated R&D center located in Coral Springs, Florida, will play an increasingly significant role in adding value. LIRC will contribute to our business strategy and will be a hotbed for innovation in the respiratory space from a formulation, device and drug-device combination standpoint. With advantages such as a differentiated talent pool, sophisticated technology and scientific equipment, LIRC will be a growth engine for the company. There will be further impetus to research around platforms such as MDIs, DPIs, SMIs, and nasal sprays. LIRC will also push forward our agenda around sustainability with green propellants, which will be fundamental to further establishing our position as a responsible pharmaceutical company.

Additionally, cost optimization efforts will enable us to improve our bottom line. We will also continue to explore inorganic opportunities to complement our existing portfolio of generics and specialty products. Strategic acquisitions and partnerships will be key to enhancing our product offerings, entering new therapeutic areas, and strengthening our market position, particularly in the specialty arena. Overall, we remain dedicated to delivering high-quality, affordable medicines to patients and are confident in our ability to navigate the market landscape effectively. Lupin’s strategic evolution in maintaining growth is multifaceted and deeply rooted in a blend of market diversification, new product portfolio, and operational optimization.

Corporate Overview Statutory Reports Financial Statements 45

==> picture [522 x 547] intentionally omitted <==

==> picture [38 x 32] intentionally omitted <==

==> picture [58 x 14] intentionally omitted <==

The Canadian pharmaceutical market, valued at USD 31.8 Bn with a 9% growth rate driven by biologics and diabetes/anti-obesity medications, offers significant opportunities. Lupin’s subsidiary in Canada, Lupin Pharma Canada Ltd., is a specialty brand company focusing on gastroenterology and women’s health areas, as well as niche and complex generics. It is the first company

to launch generic Tiotropium dry powder inhalation in Canada and has launched its first biosimilar, Etanercept, in April 2024. Since its commercial inception in 2015, Lupin Pharma Canada has consistently achieved double-digit growth, finishing this year with sales over CAD 48 Mn. We aim to continue investing in brand and complex generic products to sustain our strong growth trajectory.

46 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [418 x 42] intentionally omitted <==

==> picture [107 x 32] intentionally omitted <==

in South Africa

With an estimated value of USD 363 Bn, the

pharmaceutical market in Europe, Middle East, and Africa (EMEA) accounts for 25% of the global market. Lupin’s sales in the EMEA region constitute 10% of our global sales. Our unique portfolio, which includes niche branded generics, biosimilars, and inhalation products, presents significant growth opportunities within this region.

==> picture [38 x 31] intentionally omitted <==

==> picture [50 x 17] intentionally omitted <==

The pharmaceutical market in Europe is valued at USD 335 Bn, with the generic business contributing over USD 69 Bn. Despite the looming patent cliff with major pharmaceutical brands, particularly biologics, set to expire soon, the European market is poised for significant growth in the coming years.

In FY24, Lupin’s European business recorded sales of INR 19,235 Mn, up by 24% compared to the last year. Key drivers of this growth include the launch of our first respiratory product to several European countries and the extension of NaMuscla® beyond the UK, Germany, and France. Furthermore, our market presence has been strengthened through deep digital engagement with healthcare practitioners and the successful adoption of digital channels for promotion.

NaMuscla®, our flagship product in the neurology segment in Europe, addresses the unmet needs of adult patients suffering from non-dystrophic myotonic disorders, a severe neuromuscular and orphan disease with debilitating effects. Lupin is committed to broadening NaMuscla’s indications to pediatric patients with myotonic disorders and adults with Myotonic Dystrophy through two ongoing clinical studies. Apart from NaMuscla, our first respiratory product in Europe, Beclometasone-Formoterol Gx, is now distributed across several countries.

Lupin has successfully entered the injectable space through the acquisition of Medisol SAS in France. Medisol’s wide portfolio comprises of injectables in pain, anti-inflammatory, and cardiovascular segments. This provides us with a robust foundation to leverage Lupin’s injectable portfolio in France over the next few years. This strategic expansion and innovation in our product

offerings underscore Lupin’s dedication to addressing unmet medical needs and driving growth in the European pharmaceutical market.

==> picture [25 x 33] intentionally omitted <==

==> picture [68 x 17] intentionally omitted <==

Our German subsidiary, Hormosan Pharma GmbH, has sustained its growth in the competitive German market. In FY24, Hormosan witnessed positive growth in its

established neurology, pain, and sexual health portfolios. The launch of Luforbec®, the first generic Beclometasone/ Formoterol in Germany, marked Hormosan’s expansion into the inhalation field, further enhancing our potential in this segment.

In the face of a declining German contraceptive market, Hormosan has posted an impressive 16% growth compared to the previous year and achieved an 18% four-year CAGR, defying industry trends. At the core of this success lies a strategic investment in service innovation, helping position Hormosan as the fastestgrowing company in the market. The company’s commitment to meeting market needs led to the creation of the Contraception Prescription Navigator, a ground-breaking tool developed in collaboration with German Key Opinion Leaders, thus making Hormosan a trendsetter in the country.

==> picture [19 x 31] intentionally omitted <==

==> picture [114 x 18] intentionally omitted <==

In the UK, we have moved the needle and enhanced our market share through the penetration of Luforbec®. Amongst the new brands launched over the last four years, Luforbec® is the highest-performing primary care brand in both value and volume (Source: IQVIA report), with over 150,000 patients benefitting from our product. This volume growth is driving significant savings for the UK healthcare system. Additionally, we have enabled our carbon offsetting program, which underscores Lupin Healthcare’s commitment to sustainability alongside value delivery.

Corporate Overview Statutory Reports Financial Statements 47

==> picture [31 x 27] intentionally omitted <==

==> picture [86 x 14] intentionally omitted <==

In South Africa, the pharmaceutical market is valued at ZAR 54.8 Bn, experiencing a YoY growth of 1.1%. Lupin’s South African subsidiary, Pharma Dynamics, outperformed the market with a MAT growth of 4.4%, with sales of ZAR 1,445 Mn. This growth was driven by sustained performance in key segments such as Cardiovascular and Central Nervous System, despite ongoing pricing pressures from medical aid funding agencies and a challenging economic climate. Additionally, strong growth was observed in our Female Healthcare portfolio and our OTC franchise, led by Efferflu-C Immune Booster.

Pharma Dynamics continues to be the largest CVS company in South Africa, holding a value share of 13.7%. In unit terms, we have 25 products ranked as the top products in their respective categories and 16 products in the second position across various ATC classifications. Pharma Dynamics stands as the 8[th] largest generic pharmaceutical company in South Africa.

Pharma Dynamics remains committed to complying with the government’s Broad-Based Black Economic Empowerment policy, aimed at enhancing the economic participation of the Black population. Our upcoming verification is expected to reflect an increased compliance level following the successful pursuit of several new initiatives, including participation in the Youth Employment Service.

In FY24, Pharma Dynamics continued to collaborate with the South African Health Products Regulatory Authority to secure 21 product approvals. This year, 11 new products were introduced to the South African market. Pharma Dynamics is set to maintain its growth momentum in FY25, with the planned introduction of eight new products.

Outlook

The current macroeconomic and geopolitical situation impacting Europe and the Middle East present significant challenges for FY25, including price deterioration and inflation. Despite these challenges, Lupin is committed to expanding its product offerings and leveraging various platforms across the region for expansion. With top-ranking market positions in key therapeutic areas, we will continue to focus on building our specialty care portfolio to drive further growth. We are also focused on expanding our OTC self help category in the South African market through organic as well as inorganic opportunities.

Data Source: IQVIA MAT February 2024

==> picture [522 x 328] intentionally omitted <==

48 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [417 x 30] intentionally omitted <==

==> picture [522 x 65] intentionally omitted <==

----- Start of picture text -----

2 #4
Branded Generic Generic Player in
Player in Philippines Australia
----- End of picture text -----

The APAC region continues to be a dynamic and rapidly expanding market for Lupin, with Australia and the Philippines being significant contributors. In Australia, our focus on niche generics and biosimilars is driving steady growth. In the fast-growing pharmaceutical sector in the Philippines, Multicare Pharmaceuticals is leveraging its extensive product portfolio and strategic new launches to gain market share. These efforts are a testament to our commitment to delivering high-quality, affordable medicines across the APAC region, while further widening our footprint in these markets.

==> picture [32 x 29] intentionally omitted <==

==> picture [66 x 14] intentionally omitted <==

The pharmaceutical market in Australia is currently valued at approximately AUD 22 Bn, with an annual growth rate of 3%. The generic (Gx) business accounts for over AUD 3 Bn of this market. In the medium term, the Australian market is projected to grow at 3-5% annually. Australia’s population of around 27 Mn is characterized by an aging demographic, similar to other developed nations. However, a robust immigration program has been a key driver of population growth, resulting in sustained demand for primary as well as chronic care medicines.

The Australian government subsidizes medicines for its population, focusing on cost containment to fund newer and more expensive medications without impacting the national budget. This emphasis on cost control is expected to continue in the medium to long term, with enhanced efforts to facilitate generic penetration. Some of the measures in this direction include simplification of product registrations, reducing compliance burdens, and collaborating with like-minded countries on product approvals with no compromise on quality standards. Additionally, the government has established a framework to facilitate the entry of biosimilars, too. Overall, the Australian market has created a clear pathway for generic and biosimilar companies to enter, develop and grow over the medium to long term.

Generic Health remains the fourth-largest generic player in Australia, with sales of AUD 108 Mn in FY24, up from AUD 96 Mn in FY23, representing a growth rate of 13%. This has been possible due to 12 new product launches during the year and the continued success of our OTC hair loss treatment product, Minoxidil. We have also witnessed an increased market share of existing products; despite

competition in our key molecules, innovative and new product launches and strategic market positioning have supported our growth trajectory.

==> picture [236 x 147] intentionally omitted <==

----- Start of picture text -----

120
108.6
100 95.7
80 74.3
60 57.1
46.7 48.1
43.5
40
20
0
FY18 FY19 FY20 FY21 FY22 FY23 FY24
AUD Mn
CAGR 16%
----- End of picture text -----

Outlook

Looking ahead to FY25 and beyond, Generic Health will maintain its focus on niche generic products and gaining market share. We anticipate market erosion in our top products due to new entrants; however, we are prepared to counter this with a robust pipeline and strategic marketing programs. Lupin will focus on the generics sector, with an emphasis on Respiratory, Oncology, complex injectables, and Biosimilars. Additionally, we are expanding our footprint in adjacent markets, including New Zealand, to leverage growth opportunities in the region.

==> picture [250 x 161] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 49

==> picture [12 x 16] intentionally omitted <==

==> picture [78 x 18] intentionally omitted <==

==> picture [5 x 8] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [7 x 9] intentionally omitted <==

==> picture [13 x 11] intentionally omitted <==

The pharmaceutical market in the Philippines is valued at USD 4.9 Bn, with a robust annual growth rate of 8.7% (based on IQVIA Topline Report MAT March 2024). Multicare Pharmaceuticals, a subsidiary of Lupin Ltd, is ranked the No.1 Indian company in the Philippines and holds the second position among all branded generic companies.

Multicare Pharmaceuticals achieved total sales of PHP 2.35 Bn in FY24, an increase of 35% compared to the previous year. The company has a vast and diverse portfolio of approximately 100 products spanning various therapeutic areas, including Rheumatology, Women’s Health, Oncology, Diabetes, Gastroenterology, Pediatrics, Renal, Respiratory, anti-TB, and Neuroscience.

==> picture [246 x 140] intentionally omitted <==

----- Start of picture text -----

413
186 31
FY21 FY22 FY23 FY24
Base Business TB Tender Base Business Gwt %
CR 22%
1,283 1,548 1,714 1,938
----- End of picture text -----

Multicare Pharmaceuticals was recently certified as a ‘Great Place to Work,’ reflecting the company’s commitment to fostering a highly engaged and productive workforce. This certification on workplace culture underscores the high level of trust within the organization and the consistent positive employee experience that drives performance and productivity.

Outlook

Looking forward, Multicare has a robust pipeline of new product launches scheduled for FY25 and FY26, which include biosimilars and specialty products. This strategic focus on expanding and diversifying its product offerings is expected to drive continued growth and solidify its market position.

Multicare Pharmaceuticals is well-positioned to capitalize on the growing pharmaceutical market in the Philippines through its extensive product portfolio, strategic new launches, and a dedicated workforce committed to excellence. This aligns with Lupin’s overall strategy to strengthen its presence in key growth markets within the APAC region.

==> picture [522 x 292] intentionally omitted <==

50 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [437 x 30] intentionally omitted <==

==> picture [522 x 64] intentionally omitted <==

----- Start of picture text -----

2 #6
Ophthalmic Player in Brazil
Player in Mexico in Volume
----- End of picture text -----

==> picture [40 x 26] intentionally omitted <==

==> picture [51 x 14] intentionally omitted <==

With a market size of USD 11.7 Bn, Mexico is the second largest pharmaceutical market in Latin America. The market experienced a growth of 4.4% in value terms (according to MAT Figures as of February 2024). The primary driver of this growth is the strong dependency of the Mexican pharmaceutical market on patients’ outof-pocket expenses, coupled with the absence of price controls. Key product categories such as anti-diabetics, vaccines, and respiratory treatments exhibit significant double-digit growth.

In FY24, Laboratorios Grin (Lab Grin), Lupin’s subsidiary in Mexico, primarily focused on ophthalmology within the private market, and achieved significant milestones despite facing many challenges. The temporary closure of our manufacturing facility posed complex supply chain issues; however, Lab Grin demonstrated remarkable resilience and a robust recovery. The closure of our factory for a considerable period created supply issues that required swift and effective management. Through strategic planning, we mitigated the impact of these disruptions and ensured a strong bounce back.

Lab Grin secured an impressive market share of 7.6%, underscoring our commitment to innovation and market penetration. This achievement is particularly notable, given the operational disruptions faced during the year. The successful launch of six new products from our pure innovation pipeline was crucial to our growth. These products, including treatments for dry eye, anti-infectives,

and food supplements, have been well-received in the market. Additionally, we maximized the market penetration of our in-licensing portfolio, further enhancing our product offerings and market reach. Financially, Lab Grin delivered a positive EBITDA of INR 239 Mn, reflecting our highly focused approach to the controllable portfolio and driving significant operational efficiencies. These efforts have helped Lab Grin gain market penetration and a higher share within the ophthalmic segment.

Outlook

Looking ahead, Lab Grin is well-positioned to continue its market share gains within the ophthalmic market. The company plans to launch over 20 innovative products in the next five years, with an aim to secure market leadership. Leveraging Lupin’s global product pipeline, Lab Grin also intends to expand beyond ophthalmology by introducing products in the neuroscience and respiratory segments. This strategic expansion aims to transform Lab Grin’s portfolio into one comprising purely innovative and innovative branded generics across various therapy areas.

==> picture [522 x 188] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 51

==> picture [522 x 306] intentionally omitted <==

==> picture [34 x 32] intentionally omitted <==

==> picture [40 x 14] intentionally omitted <==

The Brazilian pharmaceutical market continues to demonstrate robust growth and dynamic shifts, providing significant opportunities for various business models. The ongoing evolution in pharmaceutical retail dynamics presents ample room for expansion. Additionally, an important number of molecules are expected to lose patent protection in the next five years, creating opportunities for the generic and biosimilar markets while posing challenges for reference drugs. Medquimica, Lupin’s Brazil subsidiary, has continued outperforming the market, gaining a share in a highly competitive environment. In FY24, Medquimica achieved sales of BRL 253 Mn, maintaining its position as the 6[th] largest player in Brazil. The company’s robust performance is driven by a diverse portfolio and strategic market positioning. Medquimica has a broad portfolio encompassing 76 molecules across 50 therapeutic classes, with 18 products ranked within the top 5 in their categories. The OTC portfolio is a leading segment featuring top-selling and rapidly growing products. Continuous expansion through innovative formulations has made OTC the primary revenue source. The company also focuses on rare diseases, such as Wilson disease, a rare genetic disorder affecting approximately 1 in 30,000 to 1 in 50,000 Brazilians annually.

During the year, Medquimica encountered a few challenges on the quality front. However, the company acted swiftly and decisively to address these issues. A robust remediation plan, including a reinforced weekly quality control mechanism, was implemented. This

ensured that Medquimica quickly overcame these challenges and was able to significantly enhance its quality management processes, providing a huge fillip for future growth.

Several factors are propelling the growth of Medquimica and the broader pharmaceutical market in Brazil. Increased cost and price pressures from payers and the accelerated launch of new products contribute significantly to market growth. The adoption of new technologies and growing government expenditure on health further bolster the market. The loss of exclusivity, favoring generics and biosimilars, continues to be a critical growth driver.

Outlook

Medquimica’s outlook for FY25 is promising, with growth expected to be driven by price hikes and the performance of key products. Medquimica has implemented a robust remediation plan, including a reinforced weekly quality control mechanism, to ensure the highest gross margins moving forward. This strategic focus is expected to maintain the company’s growth trajectory and enhance its market position in the Brazilian pharmaceutical industry.

52 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [139 x 30] intentionally omitted <==

Lupin’s Active Pharmaceutical Ingredient (API) Business is anchored on our extensive expertise in process chemistry including fermentation technology, manufacturing efficiencies, strategic cost management, and procurement. During FY24, we delivered well on our API business, continuing to strengthen our loyal client base and further expand on it. The API division achieved sales of INR 11,415 Mn over the year.

We are currently in the process of developing a robust new product portfolio across various therapeutic areas. The seeding of new products in diverse markets is expected to pave the way for sustainable growth in our API business over the next five years.

The Government of India’s Performance Linked Initiative scheme aims to enhance self-reliance in the API sector and reduce import dependency for key products. Lupin has launched several strategic initiatives aligned with this, including additions to our product portfolio and expansion of our API production capacities.

Leveraging our rich expertise in API research and formulation development, our value-added P2P business focuses on developing new molecules and combinations that meet market needs. During the year, the P2P business successfully commercialized new and innovative formulations in the cardiovascular and gastrointestinal therapy segments. Revenue from new products contributed 20% to overall sales, with key launches

including Sacubitril-Valsartan and Linagliptin, both as plain formulations and in combination.

Lupin Manufacturing Solutions

In FY24, we had a strategic carve out of our API business, encompassing the manufacturing sites at Dabhasa and Vizag, as well as Fermentation and Enzymatic research at Lupin Research Park - Pune, to form our subsidiary, Lupin Manufacturing Solutions. This initiative aligns with our commitment to exploring new horizons and achieving sustainable growth. LMS aims to maximize our thirdparty API business while expanding into API Contract Development and Manufacturing Operations.

This transition marks a significant step towards positioning Lupin as a trusted partner in the pharmaceutical industry, facilitating the development and manufacturing of safe, effective, and affordable medicines. Our path to success will be defined by collaboration, dedication, and an unwavering commitment to excellence.

Global Institutional Business

Our Global Institutional Business is not just a business venture but a testament to our commitment to a healthier world globally. We collaborate closely with global and national public health institutions in the coordinated fight against TB and HIV.

==> picture [522 x 305] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 53

==> picture [522 x 231] intentionally omitted <==

TB notification rates across high TB-burden countries have been steadily increasing. However, there remains a significant gap between actual TB prevalence and TB notification. For several years now, Lupin has been striving to establish a world free of TB, with high-quality, affordable, and reliable medicines. Our products are distributed in more than 50 countries across Africa, Latin America, the CIS, and Asia. Our firm resolve to combat TB has established us as one of the largest suppliers of firstline anti-TB drugs globally.

New medicines for managing multidrug-resistant TB are currently in development. We are working on a backward integration strategy to manufacture these essential APIs in-house, ensuring reliable supplies, continuous availability, and access to high-quality, affordable medication.

Lupin is proud to be the first generic company in the world to receive the WHO Prequalification status for Bedaquiline, a key drug for managing MDR-TB.

In addition to TB treatment, there is an increased effort to scale up the use of regimens to prevent TB in high-risk individuals, such as those in close contact with TB patients or those with HIV. Our preventive TB regimen features Rifapentine, a fermentation-based product. Lupin’s expertise in fermentation and our large API/formulation manufacturing capacities provide strong growth and leadership opportunities in the preventive TB space.

During the year, Lupin became the first company in the world to file for WHO Prequalification approval for Rifapentine 150 mg Dispersible Tablets aimed at preventing TB in children.

We are also actively engaged with global and national public health institutions in an effort to treat HIV patients in low and middle income countries. Similar to our approach to TB, we are backwardly integrated to manufacture new antiretroviral drugs, ensuring we can offer quality-assured

medication at affordable prices while mitigating potential supply disruptions.

Lupin is well positioned to capture a significant market share in the ARV segment in access countries, leveraging our backward integration and large manufacturing capacities to meet global demand.

Outlook

In the coming fiscal year, we are targeting significant growth across our business segments. We are optimistic about the prospects of our API Plus segment, anticipating robust growth driven by strong market demand and strategic initiatives.

Our Formulation arm, encompassing the Global Institutional Business and P2P Business, is set for substantial revenue growth in FY25. The GIB segment, in particular, is expected to achieve a milestone with the sales of key new product launches, including Bedaquiline and Pretomanid, alongside the TB preventive regimen of RifapentineINH. Additionally, our P2P business is also on a growth trajectory, with planned expansions in Southeast Asia, CIS, and Africa, further enhancing our market presence.

We are also excited to incorporate significant biological products into our P2P portfolio, with Ranibizumab and Etanercept being key inclusions. We anticipate considerable revenue contributions from new product offerings, mainly from Ezetimibe, Eslicarbazepine, Pirfenidone, Desvenlafaxine, Dapagliflozin, and Mirabegron. With continued momentum on innovation and the introduction of newer products, we are poised for strong performance in the upcoming quarters.

54 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [351 x 36] intentionally omitted <==

==> picture [228 x 41] intentionally omitted <==

==> picture [68 x 30] intentionally omitted <==

Guided with foresight and experience

Our governance framework, driven by transparency, accountability, fairness, integrity, and professionalism, provides the foundation for ethical decision-making and compliant practices throughout our operations.

We prioritize integrity, accountability, and transparency in our governance framework. We put strong emphasis on ethical conduct and culture of responsibility and clear accountability throughout the organization. The Board of Directors, supported by its various committees, provides strategic direction and oversight. Robust risk management, internal control systems, and a commitment to sustainability further strengthens our governance practices.

Organizational Governance Structure

Lupin’s robust governance framework is the cornerstone of our sustained growth and expanding global footprint in the highly competitive pharmaceutical sector. The company’s unwavering commitment to the highest ethical standards not only cultivates a foundation of trust and responsibility with its stakeholders but also supports its strategic initiatives for long-term prosperity. This dedication to ethics is bolstered by comprehensive internal controls and systems, which are pivotal for enhancing Lupin’s financial performance and value creation over time.

The diversity within Lupin’s Board of Directors brings together seasoned professionals from a multitude of backgrounds, including international veterans of the pharmaceutical industry. This diversity enriches the board with a vast array of perspectives and skills, essential for navigating the complexities of global markets. The leadership’s primary role is to assess the efficacy of management policies, set corporate goals, provide strategic guidance, and back the senior management team in its efforts to propel growth and maximize shareholder returns.

A key element of Lupin’s governance excellence is the active involvement of its independent Board committees. These committees convene regularly, undertaking a thorough review of governance practices to ensure that Lupin not only adheres to but also sets benchmarks in corporate governance. The committee is guided by a principle of good faith, with every decision aimed at nurturing Lupin’s success to the advantage of all stakeholders. This systemic approach to governance underscores Lupin’s commitment to ethical business conduct, transparency, and accountability, reinforcing its leadership position in the pharmaceutical industry.

==> picture [250 x 281] intentionally omitted <==

==> picture [243 x 227] intentionally omitted <==

----- Start of picture text -----

Lupin Limited Shareholders
Board of Directors
Board Committees
CEO and MD
Stakeholders
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 55

Board Committees

Lupin’s governance structure is fortified by the formation of specialized committees, each with clearly defined roles and responsibilities, to ensure that diverse matters receive the focused attention they require. Operating on a structured schedule, these committees engage in regular meetings to tackle technical or specialist issues. Their role is critical in providing informed guidance and recommendations to the Board of Directors, facilitating well rounded decision making.

Each committee is composed of Board members who bring specific skills and knowledge pertinent to the committee’s area of focus. This strategic composition enables comprehensive discussions at the committee level, enhancing the quality and depth of the advice provided to the Board. By establishing these committees, Lupin reaffirms its commitment to effective governance and meticulous oversight across all aspects of its operations, ensuring the company remains agile, compliant, and aligned with its long-term strategic goals.

==> picture [396 x 38] intentionally omitted <==

----- Start of picture text -----

Board Committee
----- End of picture text -----

	Audit Committee	Stakeholders Relationship Committee	Nomination and Remuneration Committee	Corporate Social Responsibility Committee	Risk Management Committee
Mrs. MANJU D. GUPTA Chairman				C
Ms. VINITA GUPTA Chief Executive Offcer				M	C
Mr. NILESH D. GUPTA Managing Director	M	M		M	M
Mr. RAMESH SWAMINATHAN Executive Director, Global CFO & CRO and Head of API Plus SBU					M
Mr. JEAN-LUC BELINGARD Independent Director			C
Mr. K. B. S. ANAND Independent Director	M	C		M
Dr. PUNITA KUMAR-SINHA Independent Director	C	M	M
Mr. MARK McDADE Independent Director			M		M

C - Chair

M - Member

56 LUPIN LIMITED | Integrated Report 2023-2024

Ethics, Compliance, and Integrity

Lupin is deeply committed to fostering an environment that emphasizes ethics, compliance, and integrity, not just as abstract principles but as the foundation of all business operations. This commitment is manifested through transparent and impartial interactions with stakeholders and the public, reflecting Lupin’s dedication to maintaining uncompromising integrity in every facet of its business. A zero-tolerance stance on corruption and immoral practices underpins the company’s operational ethos, ensuring that Lupin’s activities are conducted in a manner that is both ethical and responsible.

To reinforce this culture, Lupin has introduced the ‘Preparing Lupin Employees to Demonstrate Governance and Ethical Conduct’ program. Moreover, Lupin’s commitment to ethical practices is supported by robust control systems, subject to regular audits by both internal and external auditors. These systems are integral to maintaining the high standards of compliance and integrity that Lupin is known for. Beyond the Code of Conduct, Lupin has implemented a comprehensive policies and initiatives aimed at preventing workplace harassment. These measures not only create awareness among employees, but also empower them to report any unethical practices they encounter, ensuring that issues can be addressed promptly and effectively.

P.L.E.D.G.E. Program

A cornerstone initiative designed to embed these values deeply within the organization.

Serves as a reminder of the company’s ethical commitments.

Practical tool for enforcing the Lupin Code of Business Conduct and Ethics.

Provides employees with a clear mechanism for reporting violations of the CODE, ensuring they can do so without fear of retaliation or retribution, thereby promoting an open and honest workplace environment.

A key component of Lupin’s ethical framework is the Office of Ombudsperson, established to offer employees a confidential channel for reporting potential issues such as fraudulent business practices, unethical behavior, discriminatory misconduct, or violations of company policies. During the reporting period, the Ombudsperson’s office handled 22 complaints through various reporting channels. These complaints were diligently addressed by teams led by strategic business unit heads or officers designated by the Ombudsperson, in line with Lupin’s whistleblower policy.

Furthermore, Lupin’s Internal Complaints Committee plays a crucial role in investigating and resolving sexual harassment complaints, adhering to the timeframes set forth by the Sexual Harassment of Women at Workplace

(Prevention, Prohibition, and Redressal) Act, 2013. Over the past year, the committee successfully investigated and resolved three such complaints, demonstrating Lupin’s unwavering commitment to creating a safe, transparent, and respectful work environment for all employees.

Through these initiatives, Lupin underscores its dedication to upholding the highest standards of integrity and ethical conduct, ensuring that its corporate actions are always aligned with its core values.

Policies and Procedures

At Lupin, our commitment to excellence and integrity is underpinned by a comprehensive suite of policies and procedures that guide our operations and interactions. These policies serve as a blueprint for decision-making, ensuring that our business practices are not only compliant with regulatory standards but also aligned with our ethical values and corporate governance principles. They are designed to support our strategic objectives while fostering a culture of transparency, accountability, and respect for all stakeholders.

==> picture [121 x 40] intentionally omitted <==

----- Start of picture text -----

Whistle-blower Policy
----- End of picture text -----

==> picture [120 x 40] intentionally omitted <==

----- Start of picture text -----

Tax Policy
----- End of picture text -----

==> picture [121 x 40] intentionally omitted <==

----- Start of picture text -----

Environment Health,
Safety and Sustainability
Policy
----- End of picture text -----

==> picture [120 x 40] intentionally omitted <==

----- Start of picture text -----

Human Rights Policy
----- End of picture text -----

==> picture [121 x 40] intentionally omitted <==

----- Start of picture text -----

Biodiversity Policy
----- End of picture text -----

==> picture [120 x 40] intentionally omitted <==

----- Start of picture text -----

Responsible
Procurement Policy
----- End of picture text -----

==> picture [121 x 40] intentionally omitted <==

----- Start of picture text -----

Board Diversity Policy
----- End of picture text -----

==> picture [120 x 40] intentionally omitted <==

----- Start of picture text -----

Diversity and
Inclusion Policy
----- End of picture text -----

==> picture [121 x 40] intentionally omitted <==

----- Start of picture text -----

Quality Policy
----- End of picture text -----

==> picture [120 x 40] intentionally omitted <==

----- Start of picture text -----

CSR Policy
----- End of picture text -----

ESG Governance

Lupin’s commitment to Environmental, Social, and Governance (ESG) principles is central to our business ethos, reflecting our dedication to sustainability and social responsibility. Our ESG efforts, led by the ESG Core Committee under our Global CFO & Head Corporate Affairs, are integral to our strategy and operational decisions. This committee ensures ESG considerations are at the forefront of our business planning, aligning departmental goals with our broader ESG objectives. Their work, regularly reviewed by our Board of Directors, emphasizes our resolve to incorporate ESG into every facet of our operations. Through this focused approach, Lupin aims to meet stakeholder expectations and contribute positively to our community and the environment, ensuring our business remains sustainable, profitable, and socially responsible. Furthermore, we also engage with associations such as CII and IPA, to create a positive influence climate alignment policies.

Corporate Overview Statutory Reports Financial Statements 57

==> picture [222 x 33] intentionally omitted <==

==> picture [178 x 38] intentionally omitted <==

DIRECTORS

COMPANY SECRETARY Mr. R. V. Satam

Mrs. Manju D. Gupta, Chairman Ms. Vinita Gupta, Chief Executive Officer

AUDITORS

Mr. Nilesh D. Gupta, Managing Director

B S R & Co. LLP, Chartered Accountants

Mr. Ramesh Swaminathan, Executive Director, Global CFO & CRO and Head of API Plus SBU Mr. Jean-Luc Belingard, Independent Director Mr. K. B. S. Anand, Independent Director

AUDIT COMMITTEE

Dr. Punita Kumar-Sinha, Chairperson Mr. Nilesh D. Gupta Mr. K. B. S. Anand

Dr. Punita Kumar-Sinha, Independent Director

Mr. Mark D. McDade, Independent Director

Mr. Jeffrey Kindler, Independent Director (effective May 6, 2024)

NOMINATION AND REMUNERATION COMMITTEE Mr. Jean-Luc Belingard, Chairman Dr. Punita Kumar-Sinha

Mr. Alfonso Zulueta, Independent Director (effective May 6, 2024)

Mr. Mark D. McDade

LEADERSHIP TEAM

STAKEHOLDERS’ RELATIONSHIP COMMITTEE Mr. K. B. S. Anand, Chairman Mr. Nilesh D. Gupta Dr. Punita Kumar-Sinha

Ms. Vinita Gupta, Chief Executive Officer

Mr. Nilesh D. Gupta, Managing Director

Mr. Ramesh Swaminathan, Executive Director, Global CFO & CRO and Head of API Plus SBU

Mr. Christoph Funke, Chief Technical Operations Officer

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE Mrs. Manju D. Gupta, Chairman Ms. Vinita Gupta Mr. Nilesh D. Gupta Mr. K. B. S. Anand

Dr. Rajender Kamboj, President - Novel Drug Discovery

& Development

Mr. Naresh Gupta, President - API Plus & Global TB

Mr. Rajeev Sibal, President - India Region Formulations

Dr. Cyrus Karkaria, President – Biotechnology

Mr. Yashwant Mahadik, Chief Human Resources Officer

Mr. Sunil Makharia, President - Finance

Mr. Rajendra Chunodkar, President - Manufacturing Operations

Dr. Ranjana Pathak, Chief Quality Officer

President - Legal, Canada & APAC Dr. Sofia Mumtaz, Mr. Thierry Volle, President - Europe, Middle East & Africa

Dr. Fabrice Egros, President - Corporate Development

& Growth Markets

Dr. Shahin Fesharaki, Chief Scientific Officer

Mr. Spiro Gavaris, President - U.S. Generics

REGISTERED OFFICE

3[rd] Floor, Kalpataru Inspire, Off Western Express Highway, Santacruz (East), Mumbai - 400 055, India +91 22 6640 2323 www.lupin.com info@lupin.com

CORPORATE IDENTITY NUMBER L24100MH1983PLC029442

REGISTRAR AND SHARE TRANSFER AGENT

Link Intime India Pvt. Ltd.

RISK MANAGEMENT COMMITTEE

Ms. Vinita Gupta, Chairman Mr. Nilesh D. Gupta Mr. Ramesh Swaminathan Mr. Mark D. McDade Mr. Jeffrey Kindler

STRATEGY COMMITTEE

Ms. Vinita Gupta, Chairman Mr. Nilesh D. Gupta Mr. Jean-Luc Belingard Mr. Mark D. McDade Mr. Jeffrey Kindler Mr. Alfonso Zulueta

KEY CONTACTS

Ms. Rajalakshmi Azariah Vice President - Corporate Communications rajalakshmiazariah@lupin.com

Mr. Ravi Agrawal

Sr. Vice President - Investor Relations and M&A ravikagrawal@lupin.com

Mr. R. V. Satam

investorservices@lupin.com

Unit: Lupin Limited C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai - 400 083 Tel: +91 22 4918 6270 Toll Free No.: 1800 1020 878 E-mail: rnt.helpdesk@linkintime.co.in

58 LUPIN LIMITED | Integrated Report 2023-2024

Board of Directors

==> picture [186 x 186] intentionally omitted <==

==> picture [186 x 186] intentionally omitted <==

Mrs. MANJU D. GUPTA Chairman

C

Ms. VINITA GUPTA Chief Executive Officer

==> picture [38 x 9] intentionally omitted <==

----- Start of picture text -----

C M
----- End of picture text -----

==> picture [186 x 186] intentionally omitted <==

==> picture [186 x 186] intentionally omitted <==

Mr. NILESH D. GUPTA Managing Director

Mr. RAMESH SWAMINATHAN Executive Director, Global CFO & CRO and Head of API Plus SBU

M M M M

M

Audit Committee

Stakeholders’ Relationship Committee Nomination & Remuneration Committee

Corporate Overview Statutory Reports Financial Statements 59

==> picture [186 x 186] intentionally omitted <==

Mr. JEAN-LUC BELINGARD Independent Director

C

==> picture [186 x 186] intentionally omitted <==

Dr. PUNITA KUMAR-SINHA Independent Director

C M M

==> picture [186 x 186] intentionally omitted <==

Mr. K. B. S. ANAND Independent Director

C M M

==> picture [186 x 186] intentionally omitted <==

Mr. MARK D. McDADE Independent Director

M M

Corporate Social Responsibility Committee Risk Management Committee Committee Members Committee ChairpersonM C

LUPIN LIMITED | Integrated Report 2023-2024

60

Awards and Recognitions

Corporate Overview Statutory Reports Financial Statements

61

Taxation Team recognized as the ‘Best In-house Indirect Tax Team of the Year’ at the ITR Asia-Pacific Tax Awards 2023 by the International Tax Review

Humrahi , Lupin’s Patient Support Program for Diabetes Management, recognized as a ‘Patient-Centric Pharma Program in Diabetes Care’ by the IHW Council

Novashakti won the

‘Patient-centric Campaign of the Year’ award at the India Health Summit

Two Gold awards at National Awards for Manufacturing Competitiveness FY24

Best-in-class Supply Chain Strategy Award at 15[th] ELSC Leadership Awards

Lupin Diagnostics won the Emerging Diagnostics Chain of the Year award at the Diagnostics Innovation & Excellence Awards 2024

Vinita Gupta recognized as one of ‘India’s 50 Most Powerful Women in Business’ by Fortune India

‘Breakthrough Launch of the Year’ Award (for the brand Valentas) at the National Feather Healthcare and Pharma Awards in association with the Economic Times

JAI , Lupin’s Digital Asthma Educator platform, won the ‘Big Impact Award’ curated by Big FM and as the ‘Best Customer Experience Platform’ at the Global CX Summit India

Gold Award at the Industrial Safety Leadership Award by CII

Platinum Award for Kaizen at CII Champions Trophy 2023

LHWRF won the Water Sustainability Award for Excellence in Participatory Water Management

Lupin’s Corporate Communications team named among ‘The 30 Top Corporate Communication Teams 2023 and 2024’ by Reputation Today

Vinita Gupta featured in ‘The She List, Top 100 Women Achievers of India’ by India Today

62 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [68 x 29] intentionally omitted <==

==> picture [140 x 37] intentionally omitted <==

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

2025 and
2020 2021 2022 2023 2024
Beyond
----- End of picture text -----

Diagnostic Review of Current State of ESG Identifcation of Key ESG Priorities Establishment of an ESG Team and Management Structure Alignment with Global and Regional ESG Frameworks and Standards	Published our First Integrated Report Detailed Engagement with Stakeholders on Progress	Enhancement of ESG Governance Mechanisms Policy Formulation - Board Diversity Policy, Human Rights Policy, EHSS Policy, Third Party Code of Conduct Undertook GHG Inventorization and Baseline for Scope 1 and 2 Conducted a Water Risk Assessment Identifcation of Critical Suppliers Published our Second Integrated Report Disclosed to DJSI and CDP Climate Change	Further Enhancement of ESG Governance Mechanisms through the Establishment of Board Level ESG Committee Policy Formulation - Water Stewardship Policy, Biodiversity and No- Deforestation Policy Implementation of ESG Dashboard and Data Management Tools Published our First TCFD Reporting Conducted a Physical and Transition Risk Assessment along with Scenario Analysis Undertook GHG Inventorization for Scope 3 Improved Diversity Strategy Became a UNGC Signatory Developed and Published a Tax Transparency Report	Adopted Double Materiality Principles Completed ISO 45001 & ISO 14001 Certifcation for all India Sites Completed Human Rights Assessment for all India Sites Conducted First Employee Engagement Survey with more than 95% Participation Conducted LCA of 10 Products Conducted Biodiversity Assessment of Three Sites Conducted Supplier Awareness Programs Signed SBTi Commitment	Sustained Progress and Development of Existing ESG Performance Employee Assistance Program Planned Value Chain Decarbonization

Corporate Overview Statutory Reports Financial Statements 63

==> picture [521 x 441] intentionally omitted <==

Our Approach to Materiality

In FY24, we conducted a materiality assessment applying the principles of double materiality, guided by the Corporate Social Responsibility Directive framework. Double materiality allows us to evaluate our stakeholders’ perspectives on our societal and environmental impacts and the potential effects of external events on our business. This evaluation helps us identify potential vulnerabilities that could impact our ability to deliver medicines and treatments while enabling the company to manage its impact and better understand stakeholder perceptions.

Furthermore, materiality assessments help us address issues such as water resource management, the potential impact of excessive water extraction on climate change, and the subsequent impact on our future business. Our materiality assessment process includes multiple steps landscape analysis, stakeholder engagement, prioritization of material issues, application of double materiality and finalization of topics.

Based on the materiality assessment, we identified 18 high-priority topics, applying a double materiality lens to determine their financial and impact materiality and plotted these on a materiality matrix.

64 LUPIN LIMITED | Integrated Report 2023-2024

The Process of our Materiality Assessment

==> picture [418 x 504] intentionally omitted <==

----- Start of picture text -----

Landscape Analysis
In depth desk-based landscape analysis conducted with regards
to the macro trends of the pharmaceutical industry, business
environment, and potential risks and opportunities that may arise.
This helped us create a comprehensive list of 50 topics.
Stakeholder Engagement
Meetings with management to shortlist topics.
Rollout of the materiality assessment questionnaire of 30 material topics.
to over 550 external and 200 internal stakeholders.
Prioritization of Material Topics
Received responses from approximately 350 stakeholders,
representing about 46% of the total group.
Prioritized material topics based on responses.
Applying Double Materiality
18 high-priority topics from Environment, Social and Governance were
selected.
Financial and Impact pathways created for these high priority topics to
identify the scale, scope and likelihood of the impact.
Finalization
Material issues prioritized in the form of a
materiality matrix.
----- End of picture text -----

Double Materiality Matrix

Corporate Overview Statutory Reports Financial Statements 65

==> picture [504 x 504] intentionally omitted <==

----- Start of picture text -----

Accessibility and
Affordability
Sustainable Responsible Decarbonization
Process Design Supply Chain of Value Chain
Combating
Human Capital Protection of Counterfeit Ethically Marketing
Development Human Rights Medicines and Product Labeling
Waste Water Data Privacy
Minimization Management and
Protection
Pollution Employee Health Anti-Microbial
and Safety Resistance
Customer Health
and Safety
Risk Management Anti-bribery
and Business and Corruption
Continuity
Compliance
----- End of picture text -----

Impact Materiality

These identified material topics have guided our Enterprise Risk Management Framework, enabling us to manage risks and opportunities effectively and allocate resources efficiently. Through this process, we have identified key risks and opportunities and developed strategies to mitigate risks and capitalize on opportunities.

66 LUPIN LIMITED | Integrated Report 2023-2024

Material Issues for Enterprise Value Creation

==> picture [523 x 48] intentionally omitted <==

----- Start of picture text -----

Material Risk or Accessibility and Water Management Responsible
Opportunity Affordability Supply Chain and
Decarbonization
----- End of picture text -----

Material Risk or Opportunity	Accessibility and Affordability	Water Management	Responsible Supply Chain and Decarbonization
Relevance/ Business Case	With our portfolio of generics and extensive global presence, we are well-equipped to provide patients globally with access to essential medicines and meet the increasing demand for pharmaceutical products. Barriers to access, such as pricing and availability negatively impact the ability to obtain necessary medications and may pose challenges to our vision and long-term growth potential.	Effective water and waste management is crucial for the company to create a positive environmental impact. Prioritizing effcient water usage, minimizing waste generation, and ensuring proper disposal are essential to showcase our commitment to a sustainable future and a healthier planet.	The pharmaceutical industry’s dependence on the supply chain for critical raw materials and the fnal delivery of medicines could mean that any disruption can affect business continuity and product quality. Reliance on non- substitutable suppliers poses a risk to the consistent availability of essential raw materials.
Our Impact	The company’s innovation and research efforts boost brand value by providing diverse, accessible, and affordable products. These offerings help address unmet patient needs and improve access in low and middle- income countries.	Persistent high water consumption in areas experiencing water stress increases the risk of rising operational costs, which can disrupt manufacturing capabilities and result in overall revenue loss. Inadequate management of environmental impact can lead to legal, regulatory, and fnancial consequences, damage to reputation and stakeholder trust, and, ultimately, a loss of license to operate.	Partnerships with suppliers can be impacted if they fail to meet the required regulatory and ESG standards, resulting in a loss of business value. Dependence on non- substitutable and critical raw material suppliers poses a risk to the business in the event of unforeseen disruptions.
Business Strategies	We are dedicated to building a resilient and varied product portfolio through strengthening cross-functional synergies, organizational capabilities, project management, and governance. Our focus is on identifying, developing, planning, and launching new products. We prioritize developing and commercializing advanced generics, supported by operational excellence initiatives aimed at improving yields, ensuring supply chain continuity, and maintaining suffcient inventories.	We monitor our water consumption on a regular basis. Our efforts are concentrated on optimizing water usage, minimizing withdrawals, and enhancing water recovery. We aim to implement Zero Liquid Discharge at our facilities to treat all manufacturing wastewater responsibly. Additionally, we are committed to prudent water use in regions facing water scarcity, reducing our environmental impact.	We are actively seeking ways to mitigate supply chain risks by assessing alternative suppliers for critical or irreplaceable raw materials. Our suppliers are required to uphold the company’s ESG standards as outlined in our Supplier Code of Conduct.

Corporate Overview Statutory Reports Financial Statements 67

Material Issues for External Stakeholders

==> picture [523 x 50] intentionally omitted <==

----- Start of picture text -----

Material Issues Ethical Marketing and Anti-Microbial Data Privacy and
for External Labeling Resistance Cyber Security
Stakeholders
----- End of picture text -----

Material Issues for External Stakeholders	Ethical Marketing and Labeling	Anti-Microbial Resistance	Data Privacy and Cyber Security
Cause of Impact Ethical marketing and clear labeling ensure that patients receive accurate and comprehensive information about their medications. This includes dosage instructions, potential side effects, contraindications, and interactions with other drugs.		AMR can lead to higher mortality rates as infections that were once treatable become resistant to antibiotics, making them harder to cure, resulting in prolonged illnesses and increased complications. Resistant bacteria can spread within communities and healthcare settings, leading to outbreaks that are diffcult to control.	The security and integrity of the IT system across the entire business is directly impacted by risks related to Cyber Security and Data Privacy.
Stakeholder Group Community in general		Community in general	Community in general
Impact (Positive/ Negative) Miscommunicating drug uses or prescriptions, along with any incorrect labeling, can cause serious harm to patient’s health and safety, which has reputational risks alongside risks related to loss in revenues.		Lupin’s inaction as a pharmaceutical company regarding AMR stewardship can lead to a loss of reputation, which in turn leads to a loss of customer loyalty and customers.	Lack of a robust data integrity and security mechanism could increase the rate of data breaches and result in the loss of valuable data that may have an adverse impact on the business. Breach of customer/ stakeholder data may potentially expose us to litigations, fnes and penalties.

68 LUPIN LIMITED | Integrated Report 2023-2024

ESG Goals and Progress

Driven by our mission to be the most trusted patientcentric company, we are committed to addressing environmental and social challenges impacting our patients and communities. We actively pursue relevant initiatives to meet critical issues, such as combating climate change and addressing social inequities.

Our organizational goals are aligned to two pillars: ESG SMART goals and Perpetual Commitments. ESG SMART goals have specific targets and timelines, which are monitored every quarter. Our Perpetual Commitments represent our ongoing efforts to improve, track, and report monthly progress. Some significant milestones in our progress toward these goals has been shared.

==> picture [522 x 577] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 69

ESG (SMART) Goals

==> picture [522 x 39] intentionally omitted <==

----- Start of picture text -----

Sub Goal Target FY24
Theme Target
Theme Description Year Status
----- End of picture text -----

Climate Change Water Recycling Circular Economy ISO 14001 & ISO 45001 Audits LCA Biodiversity Assessment Diversity, Equity, and Inclusion (DEI) Community Engagement Employee Well- being Supply Chain Sustainability Product Launches Product Portfolio Biosimilar and Novel Complex Products	38% absolute reduction in Scope 1 & 2 by 2030 Recycling of 50% of our total water withdrawal in our India operations by 2025 70% of incinerable hazardous waste generated in India operations will be sent for co- processing by 2025 Certifcation of all the India sites including LRP and Biotech for ISO 14001 and ISO 45001 Completion of the LCA assessment of at least 10 products Completion of Biodiversity assessment of at least 3 sites 15% Women at Workplace in Indian operations by 2030 Accessibility audit for PWD for all India locations by 2030 Employee Volunteering Program Achieve and maintain an employee satisfaction score of 80% or higher on annual surveys by 2025 Undertake detailed ESG audits of 100% of only raw material and packaging materials Tier 1 suppliers by 2025 Incorporation of ESG aspects in the evaluation criteria for onboarding all new vendors by 2025 Complex Generics launches in Regulated Markets by 2028 Complex Inhalation products Complex Injectables Ophthalmology, Dermatology and Women’s Health Should be more than 70% in complex dosage forms Completion of 3 biosimilar flings in regulated markets by 2028	38% 50% 70% All sites 10 products 3 sites 15% All sites 50,000 80% 100% Tier 1 Direct Material Suppliers 10 5 5 70% 3	2030 2025 2025 2024 2024 2024 2030 2030 2030 2025 2025 2025 2028 2024 2028	21% 44% 89% Goal Achieved Goal Achieved Goal Achieved Goal Achieved 9% New Goal 19,188 80% Goal Achieved Audits completed for 250 Tier 1 suppliers New Go 1 1 1 74% Goal Achieved 4 programs in development. Recruitment completed for a phase III trial. Agreement signed for MENA region.

==> picture [74 x 619] intentionally omitted <==

----- Start of picture text -----

Environment
Stewardship
Human
Capital
Development
Stakeholder
Management
Patient-
Centric
Innovation
----- End of picture text -----

70 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [522 x 40] intentionally omitted <==

----- Start of picture text -----

Sub Goal Target FY24
Theme Target
Theme Description Year Status
----- End of picture text -----

Access & Affordability Access to Medicines Implementation of Patient Assistance Programs Education for Patients and Doctors Local Manufacturing Partnerships Diagnosis Rehabilitation Full Care	Targeting 80+ registrations of anti-TB and ARV medicines in 2024 Two programs by 2025, each beneftting 100,000 patients Education and awareness programs for patients and doctors 1 million Patients by 2028 20,000 doctors by 2030 Developing partnership with African frm by 2027 to improve accessibility By 2030, assist in the diagnosis of lung disease using fractional exhaled nitric oxide FENO and Spirometry tests for more than 1 million patients Target the diagnosis of breast cancer in 1,400 women in FY24 Lungs on Care campaign: Provide in- clinic services for Interstitial Lung Diseases ILD rehabilitation in 300 clinics by 2030 Atharv Ability, our Neuro Rehabilitation Centre, is targeting an outreach to 10,000 patients in FY24 Lyfe provides post ACS (acute coronary syndrome) patient care, aiming to reach 25,000 patients in FY24	80 100,000 1,000,000 20,000 1 1,000,000 1,400 300 10,000 25,000	2024 2025 2028 2030 2027 2030 2024 2030 2024 2024	80+ Goal Achieved 11,521 - JAI 6,000 - Jeet 11,862 - Humrahi 29,383 - Total 557,013 9,247 Currently evaluating different options to try and shift the production to the local manufacturing partner 874,212 2,700 Goal Achieved 50 19,448 Goal Achieved 2,988

*Base Year 2023

All achieved and surpassed goals will be considered closed

Corporate Overview Statutory Reports Financial Statements 71

Sustained Commitments

==> picture [523 x 35] intentionally omitted <==

----- Start of picture text -----

Theme Sub Theme Goal Description Progress/Deviation FY24
----- End of picture text -----

Environmental Stewardship Regularly Review and Revise Goals Social Personnel Safety Patient Centric Innovation Process Innovation Partnerships Quality Data Integrity Product Quality Regulatory Compliance	In alignment with our decarbonization strategy and Scope 3 reduction objectives 10% YoY reduction in the Lost Time Injury Frequency Rate, Accident Frequency Rate, and Incident Frequency Rate Target 15-20 process innovations annually, resulting in USD 2-3 Mn in savings Pursue open innovation partnerships in API, formulations, digital solutions and diagnostics No data integrity related observations in any regulatory audits No class 1 recalls Zero sites with Warning Letter status (WL) by FY26	New Commitment 4% YoY reduction in LTIFR, 26% YoY reduction in AFR and 21% YoY reduction in Incident Frequency Rate. Continuous exploration for new ideas, breakthrough concepts, and perspectives has instigated innovative thinking in the process development team; to create simple and safe processes with new solutions and approaches. The implementation of the ideas in top leadership molecules' ideas has led to the creation of value of approx. USD 10 Mn. Lupin has adopted multiple open innovation strategies to strengthen its capabilities and competitiveness in the pharmaceutical industry. No deviation 1 class 1 recall 2 USFDA sites under Warning Letter

72 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [269 x 51] intentionally omitted <==

==> picture [216 x 67] intentionally omitted <==

At Lupin, we recognize the criticality of managing financial resources efficiently to drive business growth as well as bring about a positive societal impact. We continue to make substantial investments in Research and Development and manufacturing, which are essential to unlock our potential and enable optimum productivity in the value chain. Our distinct approach lies in strategically allocating capital to enable focus on core pharma growth across key geographies while nurturing adjacencies within threshold units to provide for a patient-centric approach to growth. This strategy has enabled us to establish a strong presence across various market segments, thereby mitigating the risks associated with a singular business focus.

==> picture [72 x 72] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements

73

₹200 Bn ₹39.3 Bn Revenue from EBITDA Operations ₹15.3 Bn ₹1.8 Bn R&D Spend Dividend Paid

74 LUPIN LIMITED | Integrated Report 2023-2024

Operating Performance

During FY24, Lupin achieved a remarkable resurgence, marked by significant growth in both operating margin and profitability. With revenue growth exceeding over 20%, the company’s profits soared more than fourfold compared to FY23, demonstrating robust financial health and resilience amid challenging market conditions. This exceptional performance is a testament to Lupin’s strategic foresight as well as operational agility, augmenting our position in the pharmaceutical market.

Our U.S. business showcased outstanding growth, surpassing the USD 800 Mn revenue mark, driven by New Product Launches such as Tiotropium and Darunavir, combined with stellar performances in the inline generic business. This success highlights our ability to identify and capitalize on market opportunities, reaffirming our commitment to delivering high-quality healthcare solutions.

Our India business maintained a strong momentum, outpacing market growth despite formidable challenges. In the EMEA region, robust sales in the UK and EUPP segments contributed to substantial growth throughout the year. This geographic diversification strategy has proven to be a key driver of Lupin’s sustained success, enabling us to weather market fluctuations and capitalize on emerging opportunities.

Lupin’s Global Institutional Business witnessed a significant upswing, recording its highest-ever sales, further bolstering our global footprint and revenue streams.

Our ability to navigate complex market dynamics and deliver customer value underscores the strong proposition we offer. With focus on innovation, operational excellence, and strategic expansion, Lupin is well poised to continue driving sustainable growth and creating value for its stakeholders in the future years.

Financial Highlights

Lupin has demonstrated robust financial performance in FY24, with total revenue surpassing INR 200 Bn. Our EBITDA percentage ranged from 18.5% to 21% from Q1 to Q4, showcasing steady improvement throughout the year. This growth was driven by strategic launches of key products such as Tiotropium and Darunavir, coupled with strong sales of core products such as Luforbec, Albuterol, and Xoponex. Additionally, cost optimization initiatives and favorable market conditions contributed to enhanced profitability. The dividend payments to shareholders amounted to INR 1.8 Bn. Furthermore, strategic acquisitions, including Medisol and ONDERO, contributed to our expansion efforts and strengthened our competitive position in key therapeutic areas.

==> picture [251 x 30] intentionally omitted <==

----- Start of picture text -----

Key Metrics FY24 FY23
----- End of picture text -----

Revenue Generated (₹ Mn) EBITDA (₹ Mn) PBT (₹ Mn) ROCE Working Capital Days	200,108 39,307 24,223 14.8% 124	166,417 18,715 7,165 5.2% 145

Strategic Overview

Lupin’s strategic pivot towards specialized generics and respiratory treatments has delivered remarkable outcomes, particularly evident in the United States, where inhalation products now constitute a significant 40% share of total revenue. This trend is equally promising in the EMEA region, buoyed by the resounding success of Luforbec, our flagship inhalation product. Lupin has also witnessed a surge in demand for respiratory products in India, surpassing market growth rates and resulting in significant increase in overall sales.

Expansion and Acquisitions Driving Growth

Our growth strategy includes strategic acquisitions in the EMEA and India regions, fueling expansion and profit growth. Key acquisitions, such as Medisol in the EU to bolster the injectables franchise and ONDERO from Boehringer Ingelheim for diabetes brands, have strengthened our market presence and product portfolio. Acquisitions in strategic therapy areas, including Gastroenterology, Urology, and anti-infectives from Menarini, have further enhanced our capabilities and competitiveness in these therapeutic segments.

Focus on New Product Launches and Market Expansion

Looking ahead, Lupin remains committed to driving growth through the launch of new product lines in the coming year. Building on the success of recent launches, we anticipate continued benefits from annualization and geographic extension. With strategic focus on the Indian market, we aim to outpace market growth rates through our strategic investments in expansion and acquisitions over the last 15 months. Leveraging our robust supply chain capabilities, we are well positioned to capitalize on market opportunities and maximize sales across geographies.

Capital Allocation Strategy

Our capital allocation strategy reflects our strong commitment to advancing growth and enhancing shareholder value. With a total allocation of INR 16.4 Bn, we prioritize strategic acquisitions, capital expenditures, and dividends. Additionally, notable strategic therapeutics acquisitions aim to expand our market presence and product offerings.

Corporate Overview Statutory Reports Financial Statements 75

==> picture [251 x 29] intentionally omitted <==

----- Start of picture text -----

Key Metrics INR (Mn)
----- End of picture text -----

Capex Acquisitions Dividend payout	9,248 5,180 1,820

Driving Sustainable Value Creation

Lupin’s dedication to environmental, social, and governance principles continues to be at the forefront of our strategic investments, driving long-term value creation for all stakeholders. Our capital expenditure strategy integrates ESG considerations, extending beyond mere financial returns.

Employee Well-being

In FY24, we have further enhanced our focus on the well-being of our employees. We have introduced comprehensive health and wellness programs, ensuring a supportive and nurturing workplace. These initiatives include mental health support, professional development opportunities, and inclusive policies that promote diversity and equality. Our robust health and safety systems are continually updated to maintain a secure work environment.

==> picture [252 x 30] intentionally omitted <==

----- Start of picture text -----

Key Metrics INR (Mn)
----- End of picture text -----

Capital invested in environmental benefts Amount invested in employee beneft Amount invested in CSR	776 34,946 256

Tax Transparency

We maintain an unwavering commitment to ethical, transparent, and sustainable tax practices, which align with our core values and Code of Business Conduct. Our tax strategy ensures compliance with all relevant laws and deadlines while responsibly managing our tax liabilities. Our CFO leads this portfolio, supported by our global corporate tax department and trusted legal advisors. We prioritize adherence to transfer pricing standards and OECD guidelines, maintaining transparent reporting to tax authorities. Upholding accountability to both internal and external stakeholders, we strive for alignment, compliance, and effective reporting. Our firm conformity towards transparency extends beyond legal mandates, fostering trust and confidence in our tax operations. For detailed insights, our group-wide tax strategy for Lupin Healthcare can be accessed at https://www.lupin.com/wp-content/ uploads/2023/05/global-tax-policy-2.pdf/.

Environmental Stewardship

Lupin remains committed to minimizing our environmental footprint through strategic investments in sustainable practices. This year, we have expanded our renewable energy projects, significantly enhancing the use of solar and wind power across our operations. Our effective water management strategies have been upgraded to include advanced water recycling and conservation techniques. Additionally, we have implemented cutting-edge waste management systems to boost recycling and reduce landfill contributions.

Community Engagement

Our commitment to the community is stronger than ever over the last year. We have launched several community-focused initiatives aimed at improving local living conditions and providing essential services. These initiatives include education programs, healthcare camps, and infrastructure development in underserved areas. We actively engage with local communities to understand their needs and tailor our efforts to create a meaningful impact.

==> picture [250 x 238] intentionally omitted <==

76 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [423 x 50] intentionally omitted <==

==> picture [216 x 67] intentionally omitted <==

Our unwavering commitment to manufacturing excellence is at the very core of our foundation in our quest towards sustainable manufacturing practices and providing the best healthcare solutions for our patients. Enhanced efficiencies, adherence to high standards for product quality and regulatory compliance are the hallmarks of our manufacturing excellence, as we set new benchmarks in the industry.

At Lupin, we have made significant investments to boost our manufacturing capital. These investments focus on enhancing our manufacturing infrastructure for both Active Pharmaceutical Ingredient (API) and formulation products. This catalyzes our strategy to achieve optimal levels of resource deployment, productivity, operational efficiencies, sourcing, supply chain and logistics. We have also made significant strides in harnessing the power of technology to bolster our capabilities.

==> picture [72 x 72] intentionally omitted <==

==> picture [72 x 71] intentionally omitted <==

==> picture [71 x 72] intentionally omitted <==

==> picture [71 x 71] intentionally omitted <==

==> picture [72 x 72] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements

77

15 Global Manufacturing Sites

20,079 Mn Total Formulation Units Manufactured

11

U.S. FDA Approved Sites

>3,200 MT API Quantity Manufactured

78 LUPIN LIMITED | Integrated Report 2023-2024

World Class Manufacturing Capabilities

With 15 cGMP-compliant manufacturing facilities spanning three continents, we have established a robust foundation in pursuance of our goal to deliver affordable and high-quality medicines worldwide. These facilities adhere to the highest national and international standards, ensuring the quality, safety and efficacy of our pharmaceutical products. Additionally, by leveraging the Contract Manufacturing Organization model, we have unlocked a host of benefits, such as improved resource allocation, higher cost savings, expanded production capacities, and enhanced output.

Units Manufactured

==> picture [120 x 160] intentionally omitted <==

----- Start of picture text -----

19,936 Mn Units
Oral Solids
----- End of picture text -----

==> picture [121 x 160] intentionally omitted <==

----- Start of picture text -----

8.4 Mn Units
Oral Liquids
----- End of picture text -----

==> picture [120 x 159] intentionally omitted <==

----- Start of picture text -----

0.1 Mn Units
Injectables
----- End of picture text -----

==> picture [121 x 159] intentionally omitted <==

----- Start of picture text -----

1.4 Mn Units
Ophthalmic
Liquids
----- End of picture text -----

==> picture [120 x 159] intentionally omitted <==

----- Start of picture text -----

2.0 Mn Units
Topicals
----- End of picture text -----

==> picture [121 x 159] intentionally omitted <==

----- Start of picture text -----

566 Mn Units
Nasal Inhalers
(including Dry Powder
Inhalers and Metered
Dose Inhalers)
----- End of picture text -----

Enhancing Operational Efficiencies

Our manufacturing approach is driven by commitment to quality and continuous improvement. We have periodic upgradations to ensure that our equipment and machinery are state-of-the-art, backed by advanced processes. Some of our strategic investments during the year include:

• Continuous Flow Reactor: We have deployed the first Continuous Flow Reactor at our Ankleshwar plant in India and completed process validation for the same. Continuous flow reactors allow precise control over reaction parameters such as temperature, pressure, and residence time, leading to consistent product quality. This approach translates into additional cost savings and reduced carbon footprint when compared to the conventional batch process operation.

• Continuous Manufacturing Plant: We are evaluating a continuous manufacturing plant for formulation products. This plant will enable us to accelerate product development and reduce time to market by streamlining the production process and enabling faster iterations and optimization checks.

• Digital Systems: We utilize digital platforms such as KINAXIS to track and monitor raw material and intermediate supplies, facilitating inventory optimization and ensuring accountability is maintained throughout our supply chain process.

• AgiLine Project Initiation: We are implementing the AgiLine Project at three sites, which aims to streamline operational efficiencies and maximize productivity.

==> picture [250 x 305] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 79

==> picture [522 x 321] intentionally omitted <==

Optimizing our Manufacturing Execution System via PAS-X MES Suite

MES is a computerized system used in manufacturing process to track and document the transformation of raw materials to finished goods. It enables real-time monitoring and control of multiple elements of the production process. With PAS-X MES Suite, users can create Master Batch Records digitally, process them, and ensure regulatory-compliant documentation. We currently utilize PAS-X at our Nagpur Unit-1 (OSD) and Unit-2 (Injectables) facilities, and implementation is ongoing at our Goa manufacturing site.

Process Innovation

Continuous process innovation is a priority at Lupin. Our teams in API and Formulation sites work to optimize manufacturing processes for existing and new drug molecules. Their efforts streamline processes, improve yield, productivity, quality, and reduce cycle times. These efforts are also aligned towards optimizing manufacturing costs and enabling strict adherence with regulatory standards, ultimately enabling us to deliver high-quality, affordable medicines to patients worldwide.

Some of the process innovations in our sites that demonstrate our commitment to continuous improvement include:

Liquid-Liquid In Situ Process

We developed an improved process to manufacture an API (ACE inhibitor class drug) which minimizes the use of hazardous reagents and solvents, and also reduces solid waste generated.

Outcome: 19% increase in overall yield, 82% and 100% reduction in solvent and water usage respectively, and overall decrease in testing load for quality control from 22 to 14 samples per batch.

Safer and More Efficient Process Adoption

We have replaced the traditional process of manufacturing an antiretroviral API with a simple

80 LUPIN LIMITED | Integrated Report 2023-2024

chemical deprotection process using an alkaline alcoholic solution at atmospheric pressure. Outcome: This new process enables 15% yield improvement, lower water usage, better solvent recovery and reduced waste generation, making it a viable and market-competitive option.

Process Redesign

We redesigned the traditional 5-step manufacturing process into a 3-step process for manufacturing an API (antidepressant class drug). This process involved selective reduction of the imine with a metal catalyst to achieve a higher yield of chirally pure product. Outcome: 63% higher yield, 30% reduction in raw material usage, and 30% lesser residue per kilogram of product manufactured.

Reformulation of a Formulation Product

We reformulated an antidepressant drug product to control the generation of nitrosoamine impurity in the final drug product and optimize raw material consumption. Outcome: The revised formulation reduces the generation of nitrosamine impurity in the drug and also helps reduce the overall consumption of inactive excipients by 20%. This reduction in excipient weight also enables significant savings.

manufacturing. Using water instead of solvents during the coating process is environmentally friendly and enables savings.

B) Packing optimization to reduce waste: We changed the packing design for one of our gel products by reducing the carton size.

Outcome: The optimal reduction in carton size has resulted in decreased waste generation and has potential savings.

Manufacturing for a Sustainable Future

At Lupin, our focus has been on enabling sustainable manufacturing operations. We have continued transitioning to renewable energy sources across our sites. Additionally, we have moved to the usage of energy-efficient lighting and pumping technologies, installed Variable Frequency Drives and adopted energyefficient cooling systems. All our manufacturing and R&D sites in India, as well as our headquarters in Mumbai, are certified for ISO 14001 and ISO 45001, highlighting our commitment to the environment. We invested a sizable amount of CAPEX during renewables and decarbonizing manufacturing processes in FY24.

Environment-friendly initiatives

A) Tablets Coating Optimization: We redeveloped the coating process of an anti-epileptic drug formulation product using purified water instead of solvents. Outcome: Following variation filings and approvals, this change has been implemented for commercial batch

All our 12 India manufacturing sites, R&D Center and corporate office in India have achieved ISO 14001 & ISO 45001 certifications.

==> picture [522 x 298] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 81

Product Quality and Safety

Patient safety is at the core of everything we do. We remain committed to delivering top-quality products to our patients.

Our robust quality management systems, coupled with our quality-first culture driven by strong governance frameworks, have helped us consistently deliver on our quality commitments.

==> picture [51 x 50] intentionally omitted <==

==> picture [50 x 51] intentionally omitted <==

==> picture [132 x 117] intentionally omitted <==

----- Start of picture text -----

Quality
Management
System
----- End of picture text -----

==> picture [117 x 133] intentionally omitted <==

----- Start of picture text -----

Regulatory
Compliance
----- End of picture text -----

==> picture [190 x 91] intentionally omitted <==

----- Start of picture text -----

Ensuring
Product Safety
----- End of picture text -----

Ensuring Good Manufacturing Practices

We continue to adhere to Good Manufacturing Practices, and all our employees are trained in the same. Compliant with global regulatory standards set by the FDA, EMA, and WHO, our operations are guided by a robust Quality Policy and Management System, ensuring product quality.

Quality Management System

Our approach to quality management is led by a team of 2,700 specialists who drive the execution of our Global Quality Action Plan. This holistic strategy fosters standardization across all our global manufacturing sites under a unified quality system. Our Global Quality Council Steering Committee oversees our quality-focused operations and ensures continuous improvement. We have also appointed a Chief Quality Officer, marking our commitment to excellence in everything we do.

Our Quality Management System enables resource management and quality control across the entire product lifecycle and involves periodic reviews at manufacturing sites, business units, and with our senior personnel. We continue to take great pride in the World Class Labs program, to elevate all laboratory operations to Five Sigma.

Furthermore, we have installed laboratory equipment such as Inductively Coupled Plasma Mass Spectrometry, Liquid Chromatography Mass Spectrometry, and Gas Chromatography/Mass Spectrometry across eight sites. This infrastructure enables us to meet our stringent in-house testing requirements and quality standards effectively.

Our Journey Towards World Class Labs

To enhance overall laboratory performance and reduce human errors, laboratory incidents and contamination related errors, we implemented the World Class Labs initiative across our manufacturing sites. Through this initiative, we have achieved higher sigma levels in laboratory incidents and set up the revised targets from 4.0 to 4.1 Sigma level. Additionally, 14 of our Labs have achieved and sustained the 5S level.

82 LUPIN LIMITED | Integrated Report 2023-2024

Our Process Development and R&D teams ensure the delivery of robust processes, control input material attributes, manage in-process materials, define product specifications, oversee unit operations, and conduct thorough end-product testing prior to product release. In recent years, we have developed and filed patents for several processes aimed at quality improvement, particularly in the removal of Nitrosamine and Genotoxic impurities.

We are committed to driving continuous improvements across our products and processes by focusing on critical quality attributes and minimizing process variations. This has led to the development of an optimized process model that consistently operates at sigma levels 4 and above.

==> picture [172 x 18] intentionally omitted <==

----- Start of picture text -----

2 In-process Quality Assurance
----- End of picture text -----

==> picture [204 x 194] intentionally omitted <==

The In-process Quality Assurance personnel withdraw finished product samples that are tested against approved specifications by the Quality Control Department. If the samples meet the specifications, the Quality Assurance department provides an approval.

==> picture [172 x 18] intentionally omitted <==

----- Start of picture text -----

1 Finished Goods Warehouse
----- End of picture text -----

On completion of testing, the batch records along with analytical records are sent to QA for review. On review and subsequent compliance (if any) to the batch records, analytical records, marketing authorization, and regulatory approvals, the batch is released by Quality Assurance for further distribution.

==> picture [172 x 18] intentionally omitted <==

----- Start of picture text -----

3 Batch Testing
----- End of picture text -----

Batch testing is conducted by qualified analysts in accordance to approved specification and standard testing procedures.

Regulatory Compliance

We continue to prioritize regulatory compliance and ensure that we adhere to regulatory benchmarks in all the regions we operate. We have committed to a target of zero warning letters/OAI issues by FY25. Our progression towards our target has been significant as we continue to have only one site that was issued a warning letter during our last inspection cycle. We continue to monitor the following KPI’s to ensure we are on track to reaching our goals:

==> picture [524 x 30] intentionally omitted <==

----- Start of picture text -----

Inspections FY23 Results FY24 Results Target
----- End of picture text -----

U.S. FDA Inspection (including GMP and Bioresearch center) Number of Form 483 Number of Total Observations U.S. FDA Inspection (including GMP and Bioresearch center) Warning Letters	9 7 55 1	9 2 3 1	Zero sites with WL/OAI status by FY25 (Currently two sites under WL) Zero data integrity related observations

Corporate Overview Statutory Reports Financial Statements

83

==> picture [523 x 29] intentionally omitted <==

----- Start of picture text -----

Recalls FY23 Results FY24 Results Target
----- End of picture text -----

Class 1	0	1
				Zero class 1 recalls
Class 2/3	7	7
Inspections	FY23 Results	FY24 Results		Target
Corporate Internal Audit on Lupin sites	16	17		Driven by Lupin’s internal
				quality metrics, all India
				sites are to be audited at
				least once a year by an
				internal audit team to
				ensure compliance and
				audit preparedness
Total supplier quality audits (Third party fnished product site) for India markets Total supplier quality audits (Third party fnished product site) for U.S. markets Total supplier quality audits (raw materials) for all markets	74 6 250	64 3 265		Driven by supplier quality metrics, every supplier site is audited once every three years and at the time of new vendor qualifcation
Training for Data Integrity, SOPs and CGMP	6,385	10,090		100% of applicable
conducted across all Manufacturing Sites				employees

Digitalization as a Lever to Achieve Excellence

With greater adoption of artificial intelligence, automation and digitization, the manufacturing landscape is continuously evolving. Leveraging cutting-edge technologies and sustainable manufacturing practices to stay ahead and drive excellence is paramount to us. Through the launch of the Accelerated Digital & Analytics Performance Transformation project, we have been able to harness big data and systematically assess any lapses in our manufacturing process in real time.

The results have been promising over the financial year, with substantial savings through project ADAPT, marking another successful year for the initiative and a show of continued excellence from our operations team. We have implemented advanced automation tools such as centrifuge automation, controlled feeding for the harvesting, profile-based automation and automationbased level measurement systems to enhance product quality, avoid recalls and drive our overall commitment to enhancing quality at an organizational level. Here are some of the achievements we have made over the financial year through Project ADAPT:

• Granular data access as a backbone of Digital and Analytics

Lupin has integrated its Information Technology

and Operational Technology layers within the manufacturing operations. This integration facilitates real-time access to granular data from manufacturing processes and equipment. To facilitate this, a site-level IIOT/ Data Lake platform has been installed at our Tarapur, Nagpur, and Goa sites.

• Advanced Analytics for Enhanced Productivity Minute-level sensor data made available through the IIOT platform is analyzed using advanced analytics to optimize processes in significantly less time than conventional methods of analysis. This results in a quick improvement in production efficiency and output quality of manufacturing operations. In one of the legacy products, we have improved efficiency by more than 4%. Furthermore, our Data Science team leveraged IIOT and Machine Learning to optimize chiller and air compressor operations. This resulted in energy efficiency gains of 8% at our Tarapur location, which is our highest energy consumption site. This same model is now being expanded to other sites.

• Empowering Operational Teams The ADAPT program emphasizes building capabilities in operating teams for using digital and advanced analytic tools. Some of the tools being used are Gamified learning, Digital Performance Management, and Low-code to No-code tools to make this transition smoother and tailored to the capabilities of individual employees.

84 LUPIN LIMITED | Integrated Report 2023-2024

Action Against Counterfeit Medicines

At Lupin, we are committed to combating the problem of counterfeit drugs to ensure product integrity and bolster patient safety measures. We implement anti-counterfeit measures, such as tamper evident labels, unique identifiers and QR codes, along with robust transportation tracking systems and chain of custody documentation, for products being rolled out from our manufacturing sites.

Pharmacovigilance

Lupin’s Drug Safety and Risk Management team utilizes a quality management system adhering to pharmacovigilance regulations. It vigilantly monitors the safety and quality of our products post-launch, identifying and addressing any safety related issues.

We track key performance indicators, including compliance with submission deadlines for expedited and periodic reports to regulatory authorities such as the U.S. FDA, TGA Australia, Health Canada, Drug Controller General of India, and UK MHRA, among others. These KPIs undergo a monthly review and are presented during our Global Quality Council Steering Committee meetings to ensure governance over our regulatory obligations.

Building Team Capabilities

This year, we have introduced the Parenteral Drug

Associations Education Courses and Skill Development Program. 34 employees participated in this training, which included theoretical training and practical demonstrations with case studies. The training program was delivered by subject matter experts with extensive industry experience. Trainees were supervised daily and provided with one-on-one training for a more holistic understanding.

The PDA initiative provides a unique platform that makes science-based learning simple, effective, and practical to translate into practice.

==> picture [43 x 44] intentionally omitted <==

----- Start of picture text -----

Level
1
----- End of picture text -----

Shop Floor Operators

Hands-on sessions explaining the science behind the unit operations.

Supervisors

==> picture [43 x 43] intentionally omitted <==

----- Start of picture text -----

Level
2
----- End of picture text -----

Hands-on sessions along with investigation and trouble shootings.

==> picture [43 x 43] intentionally omitted <==

----- Start of picture text -----

Level
3
----- End of picture text -----

Senior Managers

Sessions focused on regulatory alignment.

Ninja-X App Program

In order to enable continuous learning across our sites and offices in India, Lupin deployed the Ninja-X mobile and desktop app in FY24. Ninja-X is a comprehensive learning platform enabling organizations to build training modules based on various topics. We at Lupin have created modules for our integrated manufacturing processes.

By earning points, badges, and rewards, employees are encouraged to actively participate and push for further improvement in their conceptual understanding of different operational and non-operational procedures. The gamified aspect of Ninja-X introduces an element of excitement and motivation in the learning process, promoting camaraderie and healthy competition amongst colleagues and further enriching the learning journey.

Corporate Overview Statutory Reports Financial Statements 85

Other Training and Development Programs

==> picture [233 x 254] intentionally omitted <==

Jammu	•	E-learning modules with video tutorials are
		being utilized for topics such as market
		complaints, recalls and change control.
	•	SME development program has been
		initiated at the site.
Sikkim	•	Regular ‘Learn with Leaders’ training
		sessions conducted under which heads of
		departments provide extensive training for
		second-line employees.
Mandideep	•	Conducted a workshop on investigations at the Mandideep site. A total of
		39 participants from various sites
		(Mandideep, Goa, Aurangabad, Tarapur, Dabhasa and Mumbai Corporate Offce) attended this training.
	•	Cleaning validation workshop conducted
		at the Mandideep site with a total of 38
		participants from various manufacturing locations (Mandideep, Tarapur, Pithampur and Mumbai Corporate Offce) attending this training program.
Goa	•	Weekly training provided to the operating team on the shop foor.
	•	Regular ‘Safety Toolbox’ talks organized to
		enable employees to direct safety-related
		concerns in a streamlined manner.
	•	ISO 14001 & 45001 trainings conducted by
		partnering with external faculty.
Tarapur	•	Modules for safety training automated through digital kiosk introduced at the site.
	•	Road safety drive conducted by partnering
		with an external agency.
	•	Electrical safety and compliance standard
		level training was conducted.
	•	Training on Energy conservation was
		conducted.
	•	Upgradation programs to nurture the next
		set of leaders are underway.
	•	Energy week celebrations were conducted
		for awareness across the site.
	•	Leaders+ training for employees was
		conducted.

86 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [210 x 774] intentionally omitted <==

==> picture [335 x 48] intentionally omitted <==

==> picture [216 x 67] intentionally omitted <==

Pushing the Frontiers of Innovation

We continue to be at the forefront of fulfilling the needs of our patients globally. This, along with our enhanced understanding of the global health profile, has enabled us to focus on areas with high disease burden. Our teams are dedicated to rigorous testing, filing, and regulatory approval processes for our novel, complex, biosimilars and specialty drug developments. We focus on bringing these innovative healthcare solutions to the market while adhering to the highest standards of quality, safety and compliance to local and international standards. Sustainable research and development are at the core of our business as we continue to collaborate with partners and institutions globally.

==> picture [72 x 72] intentionally omitted <==

==> picture [71 x 72] intentionally omitted <==

==> picture [72 x 72] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements

87

₹15,264 Mn R&D Investments in FY24

684 Cumulative Filings

440 Patents Granted

506 Cumulative Approvals

88 LUPIN LIMITED | Integrated Report 2023-2024

Progress and Highlights

==> picture [523 x 34] intentionally omitted <==

----- Start of picture text -----

Target
Focus Area Theme Goal Description Target Progress
Year
----- End of picture text -----

Focus Area Innovation	Theme	Goal Description	Target	Target Year	Progress
	Product Launches	Complex inhalation products	10	2028	1
		Complex injectables	5	2028	1
		Ophthalmology, Dermatology and Women’s Health	5	2028	1
	Product Portfolio	Portfolio should be more than 70% complex dosage forms	70%	2024	74% goal achieved
	Biosimilar and Novel Complex Products	Complete Biosimilar flings in regulated markets	3	2028	2 in the pipeline, and cloning and process development were completed. 2 directed towards the India market. Recruitment was completed in the phase III trial of a biosimilar. Agreement signed for the commercialization of a biosimilar in the MENA region.

==> picture [80 x 348] intentionally omitted <==

----- Start of picture text -----

Innovation
----- End of picture text -----

Research and Development

Research and Development plays a critical role in the creation of healthcare solutions. We have seven research centres spread across five countries – India (Pune and Aurangabad), the U.S. (New Jersey and Florida), Mexico, Brazil and the Netherlands. These centers undertake extensive market research and evaluation of disease trends and patient needs to develop affordable and quality medicines.

Our team of 1400+ employees has constantly shared knowledge with the industry at large. In FY24, we published five research papers on projects conducted in our sites, showcasing our commitment towards developing innovative patient treatments.

The company continues to invest in furthering research with revenue inflow to maximize our potential. Last year, we had a spend of INR 15,265 Mn, 7.8% of our annual revenues, to bolster our research and development programs, a testament to our commitment to continuous innovation. This has led to the direct addition of 1,211 drugs to our existing product portfolio.

Our R&D Strategy

Our R&D strategy over several years is aligned with our portfolio strategy to be at the forefront of the industry and a leader in API and complex generics. We continue to strengthen our capabilities in the Inhalation, Injectable and Orals space across all our key markets, including the U.S., India, Europe, Canada, Australia and our Global Institutional Business.

Our Products

We have continued to pivot towards more complex products, strengthening our extensive product portfolio across newer markets. In FY24, we launched ten complex inhalation products across the U.S., Canada, Europe and Australia. A key launch was Tiotropium, the first approved generic version of Spiriva hand inhaler in the U.S. and Canada. We have also filed for four complex generic products in these markets. This augurs well for the sustainable growth of our business.

Corporate Overview Statutory Reports Financial Statements 89

==> picture [522 x 51] intentionally omitted <==

----- Start of picture text -----

2 Key Product Launches 55 Approvals Received During the Year
----- End of picture text -----

==> picture [148 x 29] intentionally omitted <==

----- Start of picture text -----

FY22
----- End of picture text -----

==> picture [148 x 29] intentionally omitted <==

----- Start of picture text -----

FY23
----- End of picture text -----

==> picture [150 x 29] intentionally omitted <==

----- Start of picture text -----

FY24
----- End of picture text -----

Type of Filing	Filings	Approvals	Filings	Approvals	Filings	Approvals
NDA ANDA & ANDS Total	1 19 20	2 9 11	3 28 31	3 17 20	0 12 12	1 42 43

Intellectual Property Governance

Protection and management of Intellectual Property is crucial to our business strategy. Our stringent policies and robust governance processes enable us to identify and safeguard our assets against any breach of information and mitigate any risk associated with infringements. Our Code of Business Conduct and Ethics Policy ensures that all our employees are aware of our commitment to protecting intellectual property.

==> picture [250 x 126] intentionally omitted <==

----- Start of picture text -----

32 5
Formulations Biotech
2 34
Active Novel Drug Discovery
Pharmaceutical and Development
Ingredients Applications
----- End of picture text -----

Patent Applications 73 in FY24

We have a diverse and constantly evolving product portfolio that has seen the addition of 34 generic dossiers across the U.S., Canada, Europe, Australia, Philippines, India and our Global Institutional Business. Driving these initiatives is our Intellectual Property Management Group, that upholds the creation and safety of our IP, as well as pioneer research, building a valuable portfolio of patents, products, and a robust research pipeline.

With these filings, our portfolio now stands at 40 active patents out of 866 patent applications, comprising of APIs, formulations, NDDD, and biotech. These patents represent our mission to bring the best-in-class medicines to our patients.

Milestones Achieved by our R&D Facilities in FY24

Lupin filed 34 generic dossiers across the U.S., Canada, Europe, Australia, Philippines, India and our Global Institutional Business.

==> picture [250 x 126] intentionally omitted <==

----- Start of picture text -----

18 2
Formulations Biotech
1 89
Active Novel Drug Discovery
Pharmaceutical and Development
Ingredients Applications
----- End of picture text -----

110

Patents Secured in FY24

90 LUPIN LIMITED | Integrated Report 2023-2024

Biosimilar Research

We have continued to invest in and expand our biosimilar portfolio in FY24, in line with our growth strategy and business objectives. Our biosimilars are aimed at key markets, including the U.S., Europe, Japan, India, and other emerging regions. We also signed up for the commercialization of a biosimilar in the MENA region. We take pride in developing biosimilars that adhere to the highest quality standards, ensuring they meet regulatory requirements in both developed and emerging markets. We continue to expand access to our biosimilars in developed and new markets. This year, we signed an exclusive licensing agreement with Amman Pharma for exclusive marketing and commercialization of Ranibizumab, a biosimilar of Lucentis®, in the MENA region.

Our Biosimilars Pipeline

Two new global programs were included in the pipeline, and cloning and process development was completed.

Novel Drug Discovery and Development

Our Novel Drug Discovery and Development team continues to focus on accelerating new drug discoveries and bringing them to commercialization. Since its inception, the NDDD team has focused on three key therapeutic areas - oncology, immunology and metabolic disorders. We have continued to advance our discovery programs by fostering partnerships with leading pharmaceutical companies. In July 2023, we secured funding from our development partners at AbbVie to initiate phase 1 clinical trials for the MALT 1 (Mucosa-Associated Lymphoid Tissue Lymphoma Translocation Protein 1) inhibitor program for treatments across a range of hematological cancers that are hard to treat. This has been a significant step in getting this formulation to market and demonstrates our continued commitment to ensuring positive health outcomes for our patients.

DIFIZMA® DPI - Bringing innovation to underserved markets

The estimated national burden of asthma in India stands at approximately 30 million of the population, with an overall prevalence of 3%. Out of this, approximately 3 million patients are classified as ‘inadequately controlled’. They experience uncontrolled symptoms and are at a higher risk of exacerbations that may lead to hospitalization, thereby contributing to higher Disability Adjusted Life Years in most patients.

Lupin is the first company to introduce DIFIZMA®, the only fixed-dose combination (FDC) dry powder inhalation product for the treatment of inadequately controlled Asthma. This FDC combines Indacaterol, a long acting beta agonist, Glycopyrronium, a long acting muscarinic receptor antagonist, and Mometasone Furoate, an inhaled corticosteroid.

Leveraging Technology for Innovation

We have been exploring the power of technology to drive innovation and transform drug discovery, development, and delivery. By integrating cutting-edge technologies such as artificial intelligence, machine learning, and genomics, we aim to accelerate the identification of new drugs and create more patient-centric solutions. Our collaborations seek to unlock the value of enterprise data, enhancing efficiencies and helping to expedite innovation across all functions and processes, including manufacturing, testing, supply chain, finance and accounting.

Strategic Digital Transformation for Enhanced Operational Efficiency

We have embarked on a strategic data-driven transformation to enhance business agility, performance, and operational efficiencies. By deploying a cutting-edge digital platform based on SAP S/4HANA®, we provide our decision makers with real-time visibility into integrated data from multiple sources, including supply chain, personnel, and sales networks. This platform spans over 100 countries and integrates our fifteen manufacturing and research facilities across India, the U.S., Brazil, and Mexico, enabling a comprehensive view of global operations and performance for high level, informed decision making.

The implementation of SAP Fiori apps has significantly improved the user experience for our employees, offering simple, easy to access data models and analytical reports.

In our Indian operations, we have harnessed Robotic Process Automation and advanced analytical tools such as Qlik Sense to automate critical tasks. Enhancements to our Qlik Sense dashboards have promoted business transparency and facilitated data-driven decisionmaking, enabling integrated data utilization and providing meaningful insights in a user friendly manner.

Furthermore, we have globally implemented an innovative end-to-end supply planning tool, marking a significant advancement in optimizing supply chain operations and enhancing organizational efficiencies. This tool seamlessly integrates with our ERP system, providing a unified platform that automates planning activities for both demand and supply sides, delivering a touchless planning experience.

Revolutionizing Drug Discovery

In FY24, we partnered with a leading AI-driven solutions company in the pharmaceutical industry. This partnership empowers our Global Business Development and Licensing team with actionable insights to identify promising assets for the Inhalation/Respiration and central nervous system fields.

Employing cutting-edge AI algorithms helps sift vast amounts of data and evaluate various aspects of potential assets, including drug class, mechanism of action, indications, route of administration, formulation, dosages, innovation, and clinical probability of success.

Corporate Overview Statutory Reports Financial Statements 91

This comprehensive approach ensures that we receive highly relevant insights to guide our strategic decisionmaking process.

Green Chemistry

Lupin is accelerating the use of green chemistry to reduce the generation of hazardous substances. We have been achieving this by applying metrics such as atom economy and e-factor. An example of this is an antiviral molecule; the earlier process involved three steps, and the overall yield was found to be 0.91% with an e-factor of 88 and an atom economy of 35%. The improved process involves one step and a yield of 1.4%. E-factor has improved by almost 90% (8.0) and atom economy by 58% (80%).

We aim to incorporate 12 principles of green chemistry and have conducted programs and trained process development scientists on principles pertaining to the same. This ensures that we do not focus our remediation efforts on end of life waste streams, but rather take on a proactive approach to the disposal of hazardous materials. We intend to expand this to include more processes and chemicals in the coming years. Using telescoping principles, lean processes for 17 leadership molecules (API) were transformed, and isolations at intermittent steps were eliminated. The optimal use of water and solvents in the process has helped in the reduction of both aqueous effluents and the number of organic solvents mix. The use of statistical tools (DoE) to develop and optimize chemistry has also enabled us to explore new design spaces. The manufacturing API’s overall cycle time has been reduced.

To transform the batch processes for one of our highvolume APIs, our team has embarked on a journey to gradually transition from batch process to continuous

==> picture [250 x 257] intentionally omitted <==

----- Start of picture text -----

30% Waste Reduction
Solvent/Reagent
60% Reduction
45% Water Reduction
20% Reduction in Number of Stages
----- End of picture text -----

manufacturing and has witnessed benefits such as shorter processing times, increased safety and efficiency, and a reduced environmental footprint. This has resulted in the reduction of manual intervention and overhead expenses. Furthermore, process designs through biotechnological routes and enzymatic catalysis have enabled us to catalyze numerous chemical reactions for molecules such as Cephalexin, Eslicarbazepine, and Rifampicin, as an alternative to classical chemical synthesis. This is a testament to our efforts to provide business value.

==> picture [522 x 269] intentionally omitted <==

92 LUPIN LIMITED | Integrated Report 2023-2024

R&D Partnerships and Collaborations

Our partners are at the crux of our innovation journey. Open innovation involves partnering with external entities to acquire new knowledge, technologies, inventions, and study market opportunities. Lupin has adopted multiple open innovation strategies to strengthen its capabilities for ESG commitment on partnerships and competitiveness in the pharmaceutical industry.

Therapy for Highly Drug-Resistant TB

TB Alliance granted Lupin a non-exclusive license to manufacture the anti-TB drug Pretomanid as part of the three-drug “BPaL” regimen. Lupin has initiated commercialization of the anti-tuberculosis medicine in approximately 140 countries and territories, including many of the highest TB burden countries around the world.

Information Security Management and Protection

In today’s interconnected digital landscape, information security management and protection have become paramount concerns for organizations worldwide. We are committed to upholding the highest standards of information security across our operations and have a comprehensive approach to safeguarding our information assets.

Elevating Information Security in Digital Age

Lupin prioritizes the security of its sensitive information through a robust Information Security Management System. This framework provides a structured approach to proactively identify, assess, and mitigate information security risks. By adhering to industry best practices, the ISMS ensures the confidentiality, integrity, and availability of critical data assets.

Our commitment to cybersecurity extends beyond policy implementation. We leverage advanced technologies like Zero Trust and network monitoring tools, particularly at the plant level, to bolster our defenses. Additionally, the strategic deployment of honeypots at the perimeter aligns seamlessly with CERT-IN standards. This multilayered approach has yielded positive results, with zero major security incidents reported this year.

Furthermore, Lupin demonstrates its dedication to continuous improvement by achieving ISO 27001:2013 certification across all India locations, including our headquarters. We are currently transitioning to the latest standard, ISO 27001:2022. This proactive approach ensures our security practices remain aligned with evolving threats and regulatory requirements, enabling us to adapt effectively.

==> picture [522 x 361] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 93

Overview

In a rapidly evolving digital landscape, Safeguarding Operational Technology networks is paramount. Our project aimed to fortify cybersecurity by implementing cutting-edge anomaly detection techniques and integrating threat intelligence feeds. The goal was to proactively identify and mitigate potential threats to uphold integrity, availability, and reliability of critical industrial processes.

Key Highlights

• State of the Art Technology Deployment

We deployed advanced anomaly detection systems within our OT network. These systems monitored network traffic without disrupting manufacturing operations, analyzing patterns to identify any unusual behaviors signaling security threats swiftly.

• Collaborative Customization

Engaging with equipment manufacturers, business teams, and security consultants was crucial. Together, we ensured that the threat intelligence feeds were finely tuned to the unique needs of each plant. This collaborative effort maximized the effectiveness of our cybersecurity measures.

Business Benefits

• Early Threat Detection

Real-time anomaly detection empowered us to swiftly respond to potential threats, minimizing their impact on critical processes.

• Reduced Downtime

Proactive threat mitigation led to minimal operational disruptions, ensuring seamless manufacturing continuity.

• Heightened Situational Awareness

By raising awareness about cybersecurity threats, we fostered a culture of vigilance across our organization.

• Cost Savings

Early risk mitigation translated to significant cost savings, preventing the need for extensive system repairs and downtime.

Business Continuity Plan

To ensure the resilience of our critical operations in times of crisis, we have established a Business Continuity Management System in alignment with the ISO 22301 standard. In the initial phase, we conducted a comprehensive Business Impact Analysis and Risk

Assessment specifically for IT services in our Head office. The recovery strategy was then validated through a tabletop exercise. Subsequent phases will involve conducting BIA and RA for four additional locations engaged in Research and Development and manufacturing.

94 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [219 x 45] intentionally omitted <==

==> picture [216 x 67] intentionally omitted <==

Championing Workforce Development

Our people are at the heart of everything we do. We believe that their unwavering contributions play a pivotal role in forging ahead and achieving our business objectives. We foster a culture where every individual thrives and is valued and empowered. We take pride in creating an environment which supports their wellbeing, learning and development and continuous improvement, resulting in overall excellence. The dedication and resilience of our people propels us forward, helping us overcome challenges and explore new opportunities in healthcare.

Embracing a people-centric ethos is not merely a philosophy at Lupin; it is about creating a community united by the passion for providing quality and affordable medicines and unlocking a bold and prosperous future for everyone.

==> picture [72 x 72] intentionally omitted <==

==> picture [72 x 72] intentionally omitted <==

==> picture [71 x 72] intentionally omitted <==

==> picture [71 x 72] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 95

96 LUPIN LIMITED | Integrated Report 2023-2024

Progress Against ESG Targets

==> picture [522 x 36] intentionally omitted <==

----- Start of picture text -----

Target
Theme Sub Theme Goal Description Target Progress FY24
Year
----- End of picture text -----

	t ESG Targets
	Sub Theme	Goal Description	Target	Target Year	Progress FY24
Human Capital Development	Diversity, Equity, and Inclusion	15% Women at Workplace in Indian operations by 2030	15%	2030	Gender diversity in workforce is 9%
		Complete Accessibility audit for PWD for all India locations by 2030	All sites	2030	New Goal
	Community Engagement	Collectively reach 50,000 hours, employee volunteer hours by 2030	50000 hours	2030	Completed 19188 hours of employee volunteering
	Employee Well-being	Achieve and maintain an employee satisfaction score of 80% or higher on annual surveys by 2025	80%	2025	Achieved overall engagement score of 80% globally and 89% in India

Progress against Perpetual Commitments

Theme Health and Safety	Sub Theme Occupational health and safety	Goal Description 10% YoY reduction in Lost Time Injury Frequency Rate, Accident Frequency Rate, and Incident Frequency Rate, considering FY19 as the base year	Progress FY24 Reduction of LTIFR - 4% AFR - 26% IFR - 21%

Onboarding the right talent

Our employees help us achieve our goal of strengthening the global healthcare ecosystem by providing patients worldwide quality, affordable and accessible healthcare solutions. To ensure we are on the right path, we dedicate considerable time and effort to attract and retain the best talent from the industry through various recruitment channels. We offer various programs once they are onboard to ensure smooth and seamless integration within the organization.

• Management Trainee programs: Central to our talent acquisition strategy is the onboarding of Management Trainees, wherein candidates are recruited through campus placements and internships. These programs offer a unique opportunity, outlining a clear path for career growth for the candidates within Lupin. The program nurtures them for future roles across the company as we build a strong pipeline of skilled individuals,

• Lupin Program for Interns: Our successful internship program is a gateway for college students to understand and experience the work environment

and culture at Lupin. It also serves as a platform for us to identify promising talent as they contribute to projects. In the past year, we welcomed interns from esteemed institutes such as the National Institute of Pharmaceutical Education and Research, Birla Institute of Technology and Science, Manipal, Punjab University and JSS College, amongst various others.

• GROW (Get Ready for Opportunities at Work): We encourage our employees to explore and apply for roles across Lupin that suit their interests and experience through our internal job posting platform, GROW.

• Parichay: Employees refer and connect us to suitable candidates who align with Lupin’s vision through our employee referral program, Parichay.

Our candidate screening process is thorough and meticulous, ensuring each potential employee aligns with our business goals. Through interviews and assessments, including technical and soft skills, as well as psychometric evaluations, we strive to find the most suitable and talented individuals who share our passion to create a healthier world.

Corporate Overview Statutory Reports Financial Statements 97

==> picture [522 x 26] intentionally omitted <==

----- Start of picture text -----

New Hires FY24, India
----- End of picture text -----

==> picture [524 x 88] intentionally omitted <==

----- Start of picture text -----

<30 years 30-50 years >50 years
Category Total
Male Female Male Female Male Female
----- End of picture text -----

Category <30 years Male Female	<30 years	30-50 years	>50 years
		Male Female
Employees (Permanent) 3,383 254		1,096 104	15 1 4,853
Senior Management 0 0		13 5	6 0 24
Middle Management 60 33		369 32	5 1 500
Junior Management 3,323 221		714 67	4 0 4,329
Employees (Other than Permanent) (Apprentices, Trainees, Interns, Part-timers) 13 28		3 10	0 0 54
Workers (Permanent) 32 0		15 0	0 0 47
Workers (Other than Permanent) 264 43		4 0	0 0 311

==> picture [523 x 27] intentionally omitted <==

----- Start of picture text -----

New Hires FY24, ROW
----- End of picture text -----

Category	<30 years	<30 years	30-50 years	30-50 years	>50 years	>50 years	Total
	Male	Female	Male	Female	Male	Female
Employees (Permanent)	36 43		55 72		10 9		225
Employees (Other than Permanent) (Apprentices, Trainees, Interns, Part-timers)	14 11		2 5		5 3		40
Workers (Permanent)	15 17		10 12		0 0		54
Workers (Other than Permanent)	1 2		0 1		0 0		4

==> picture [523 x 27] intentionally omitted <==

----- Start of picture text -----

Total Hires FY24, North America
----- End of picture text -----

Category	Male	Female
Employees (Permanent) 64 50

98 LUPIN LIMITED | Integrated Report 2023-2024

Induction Program

Udbhav, our flagship induction program, is quite comprehensive and designed to familiarize new employees with Lupin’s culture and operations. It covers the legacy, values and culture of the company, as well as guidelines pertaining to finance and pharma. This information enables new joiners to seamlessly integrate into the organization. In FY24, 2044 employees participated in the onboarding program, gaining a deep understanding of the company and their roles.

Buddy Program

During their initial months, new employees are assigned buddies through a structured process. Senior employees in the company help them to settle in and smoothly integrate into the organization with a sense of belonging. With 499 active buddies, including 114 newly certified ones and 172 engaging in experiential learning, we are working to enhance the onboarding experience and productivity of our new hires, ensuring they feel supported every step of the way.

It also provides comprehensive training modules about our corporate policies, including the Code of Business Conduct and Ethics Policy, Whistle Blower Policy, and Prevention of Workplace Harassment through the PLEDGE (Preparing Lupin Employees to Demonstrate Corporate Governance and Ethical Conduct) initiative. CoBC training is rolled out to permanent and contract employees. Last year, we further strengthened our Prevention of Sexual Harassment (PoSH) framework, establishing dedicated Internal Committees in all locations. The PoSH e-module saw remarkable completion rates of 84% among permanent employees and over 2,350 contractual staff. We also completed an annual in-person refresher for all 47 Committee members and held a virtual PoSH refresher internal workshop with 23 participants.

Online learning continues to be important for us. Our collaboration with OpenSesame® enables employees to access 25,000+ relevant courses spanning diverse topics. These e-learning courses also cover health and safety topics, equipping employees with the necessary knowledge to stay informed and compliant to industry norms.

Investing in People

Impetus on training and development contributes to the growth of an organization, especially within a rapidly evolving industry like pharmaceuticals. We foster a spirit of learning to ensure that our employees constantly move up the curve to be able to take on newer challenges and, hence, feel motivated and engaged at work. We have initiated multiple programs for technical upskilling, behavioral training, and leadership development.

Learning and Development Programs

• The key to building a robust internal talent pool and developing capability is to identify the skill gaps and work diligently to address them in a meaningful manner. Our Catalyst and Accelerate programs are designed to ensure a comprehensive approach to talent development. The Catalyst program, spanning over twelve months and four phases, was developed to identify and address skill gaps. The first phase, gap identification, is facilitated by inhouse Development Centers, which make use of comprehensive assessment processes and tools for gap identification. This is followed by extensive feedback and debriefing sessions. The program then provides a business driven Individual Development Plan, strategically focusing on experience, exposure, and education. Over the year, five reviews are conducted to ascertain the gaps that pave the way for targeted learning sessions.

• Similarly, the Accelerate program follows a systematic approach to upskill all Regional Sales Managers of India Region Formulations. The program begins by identifying development areas and then provides customized learning interventions over six months, ensuring the specific business needs are met.

==> picture [251 x 398] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 99

==> picture [175 x 33] intentionally omitted <==

----- Start of picture text -----

Training Data - India
----- End of picture text -----

==> picture [174 x 33] intentionally omitted <==

----- Start of picture text -----

Training Data -
North America
----- End of picture text -----

==> picture [175 x 33] intentionally omitted <==

----- Start of picture text -----

Training Data - ROW
----- End of picture text -----

==> picture [524 x 32] intentionally omitted <==

----- Start of picture text -----

Category FY24 FY23 Category FY24 FY23 Category FY24 FY23
----- End of picture text -----

Total hours of Training Total amount spent on Training (INR)	1,416,956 132,678,981	1,711,297 65,309,762	Total hours of Training Total amount spent on Training (INR)	6,554 31,519,666	9,348 29,613,557	Total hours of Training Total amount spent on Training (INR)	27,016 22,854,727	16,219 28,859,219

Opportunities for Continuous Learning

We introduced a 4-year PhD program, a collaboration between Manipal and Symbiosis universities, exclusively sponsored by Lupin. Ascent offers a unique opportunity for Lupin professionals to advance their academic pursuits while contributing to cutting-edge research in their respective fields.

An 11-month virtual program covering eight modules. 100% of sessions are delivered virtually over weekends, minimizing work disruption. ASMs are exposed to global learnings.

A partnership with Fergusson College to upskill our employees in biotechnology.

Notable features of this program are:

• Industry-academia collaboration with joint curriculum and faculty

• Hands-on experience for students in an industrial work environment

A 5-day certification program for our National Sales Managers, in partnership with IIM Lucknow:

• Accelerate personal and professional growth

• • Strengthen leadership, team building, and value-driven mindset

The impact of the certification course is measured through the outcome of the project assigned to each NSM.

100 LUPIN LIMITED | Integrated Report 2023-2024

Nurturing Academic Aspirations through ASCENT

Partnering with esteemed institutions such as Manipal Academy of Higher Education, Karnataka and Symbiosis International University, Lavale, Pune, this four-year PhD journey presents a transformative opportunity for Lupin’s R&D division to pursue academics while contributing to cutting-edge research in their fields. This fully sponsored initiative goes beyond mere classroom learning, enabling participants to embark on a research journey under the guidance of a Doctoral Advisory Committee. With a

primary guide from Lupin, a co-guide from the partnering university, and Subject Matter Experts from the company and academia, participants benefit from a wealth of expertise and perspectives. Regular progress reviews with the DAC serve as vital checkpoints, ensuring that our employees’ research stays on track while aligning with academic and industry objectives. Upon completing their research phase, participants submit their thesis for an evaluation to ensure that their work meets the highest standards of quality, originality, and contribution to their respective fields.

Employee Participation

Financial Overview

25 2 Total Participants PhD Degrees Awarded in FY24 in FY24

INR 763,625

Total Spending FY24

Includes participants’ fees, cost of two mandatory courses, and two defense viva sessions organized for final evaluation of PHD

Courses and Training

Research Methodology

7 Number of Candidates who pursued this course

33 hours

Total Training Hours

Research Publication and Ethics

• Number of Candidates who pursued

• 6 this course 30 hours Total Training Hours • Classroom Training: 15 hours

Total Training Hours

• Experiential Learning: 15 hours

We are immensely proud of this program as it embodies our belief in investing in our people and supporting them to reach their full potential.

Empowering leadership

Influential leaders are crucial to driving our purpose-led strategy to develop a pipeline of talented leaders within the organization. We have created a series of programs designed to cultivate leadership skills and capabilities among our employees, from entry-level managers to senior management positions.

Corporate Overview Statutory Reports Financial Statements 101

		Corporate OverviewStatutory Re	Corporate OverviewStatutory Re	Corporate OverviewStatutory Re	Corporate OverviewStatutory Re	por	ts Financial Statements 101
		Lupin’s Leadership Development Programs
For	Senior Leaders		For	Mid-Managers and Technical Leads		For	Entry-level managers
•	Lead, Accelerate,		•	Area Managers Excellence		•	Leader Plus
	Motivate, Perform: Recently launched fagship senior leadership development program			An eight-month program to equip our area managers with leadership skills, brand standards knowledge and customer service excellence.			Designed to empower young leaders by addressing soft skills gaps, providing insights
			•	ELITE			and tools to enhance
				A comprehensive program to shape managerial and leadership capabilities through psychometric assessments, team activities, workshops, development clusters, action learning projects and			leadership capabilities, communication, teamwork, problem-solving and supervisory skills for driving team performance.
				coaching led by the L&D team with
				external expert inputs.
			•	ENHANCE
				A three-year developmental program
				for selected leaders, facilitated through
				engagements like development centers,
				action learning projects, executive
				education, mentoring and site immersions
				to groom them as future site heads.

LAMP: Lead, Accelerate, Motivate, Perform is a flagship senior leadership development initiative designed to enhance the leadership skills of our General Managers, Senior General Managers, and Vice Presidents. Launched in February 2024, it is a 6-month blended journey developed in partnership with the Indian Institute of Management (IIM) Nagpur and esteemed faculties from IIMs across the country.

The program offers a well-rounded learning experience, featuring in-person modules focused on developing Lupin’s 8 leadership competencies, virtual masterclasses on contemporary leadership topics,

immersive experiences with changemakers, industry speaker sessions, and interactive business simulations. Participants also engage in action learning projects, applying their learnings to real-world business challenges.

The first cohort includes 200 senior leaders from diverse functions like Corporate, R&D, Manufacturing, Quality, and IRF in four batches. Batch 1 has completed the on-campus module and is engaged in ongoing masterclasses and ALPs. More such programs are planned in the upcoming months.

==> picture [522 x 197] intentionally omitted <==

102 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [470 x 327] intentionally omitted <==

----- Start of picture text -----

Stakeholder Strategic Agility
Management
Collaboration Innovation &
Creativity
Intergrity
Entrepreneurial Spirit
Respect and Care
Passion for Excellence
Team Work
Process Customer
Excellence Customer Focus Centricity
Result Orientation Developing Talent
----- End of picture text -----

Companies often face the challenge of developing a robust succession pipeline for critical site leadership roles, especially those instrumental in maintaining operational excellence and regulatory compliance. Lupin’s ENHANCE program directly addresses this need by systematically grooming a select group of high potential managers over three years to assume the responsibilities of a site head in the future. Investing in this initiative mitigates the risks associated with leadership transitions and ensures seamless knowledge transfer. The program safeguards business continuity by fortifying the leadership pipeline of individuals well-versed in the company’s operations and culture.

The program follows a comprehensive nine-step approach facilitated through three broad areas: Engage, Challenge, and Measure. Engagement is achieved through a variety of touchpoints, including Development Centers, 1:1 interactions, Action Learning projects, worldclass executive education and exposure to prestigious institutions like the Indian Institutes of Management Lucknow, mentoring by our senior leadership team, coaching from business leaders and industry veterans, and site immersions. This engagement is closely tracked by the senior leadership team, ensuring a structured and impactful journey.

The core of the program is a series of dynamic workshops led by industry experts and seasoned leaders. These

workshops delve into crucial leadership competencies, such as team management, impactful presentations, executive presence, decision-making, and effective communication, equipping participants with the skills necessary to thrive in a competitive business environment.

Quantitative benefits of LAMP

Lupin Leadership Development Program, LAMP, incorporates Action Learning Projects as a core component.

20 live projects to be allocated among 187 senior leaders, organized into groups of 9-10 members each. These participants work on live organizational challenges, providing practical solutions and driving impactful change within the company.

Action learning Projects: 20 live projects

• Mentors: Senior leaders across functions

• Sponsors: Company Presidents

• The structured of each interim and final reviews

• project by MD Nilesh Gupta and the Executive Leadership Committee ensure that the projects align with our strategic goals and deliver meaningful impact.

Corporate Overview Statutory Reports Financial Statements 103

ELITE at Pithampur: ELITE (Evolving Leaders Inspire Team Effectiveness): A comprehensive multidisciplinary intervention where each leader’s unique requirements are addressed. It aims to enhance Managerial and Leadership capabilities through a Psychometric Assessment and Profiling tool, team activities, workshops, development clusters, action learning projects, coaching, and more. The complexity necessitated a co-partnered approach where the L&D team drives over 90% of the developmental activities, and external experts were brought in at regular intervals for focused inputs.

The intervention integrates key insights with proven innovative development methods to deliver significant and lasting business results. The journey convened with onboarding participants and key stakeholders, followed by a psychometric profiling tool on Leadership paradoxes. Post report debriefing, development areas were identified and addressed through the IDP.

Quantitative Benefits of ELITE

• Action Learning Projects taken by 19 participants

• A. Cost price reduction of tablets in OSD: The team overachieved the target of reducing the cost price from INR 5.10 to 4 to 3.53, leading to savings of INR 48 Mn over the last year.

• B. Market complaints reduction and closure enhancement in Albuterol inhaler: Achieved reduction in complaints by 94%.

• C. Reduction in COGM of Levothyroxine Sodium Tablets USP, U.S. market, by reducing CC/PC cost/ pack by ~20%, with an increase in the batch size from 2.6 Mn to 5.2 Mn. Impact:

  • a. Yield increased by 0.2% (97.3 % to 97.5%)

  • b. OEE of Packing increased by 2% (38% to 40%)

  • c. OEE of Comp. increased by 4%.(39% to 43%)

  • d. Changeovers reduced by 50%

  • e. Capacity increased by 10%

  • f. Inventory buildup went up to 400+ Mn

  • g. Inventory was less than 5 months

• 21% Promotions and 21% identified as future Site Heads

• Positive shift in behaviors: The most impacted behaviors, as confirmed by the stakeholders, were productive cross functional interactions, being assertive, empathetic and flexible and having a focused approach toward next line development.

==> picture [522 x 374] intentionally omitted <==

104 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [522 x 429] intentionally omitted <==

Shaping Promising Talent

We have implemented the Global Talent Management and Leadership Development program, an initiative designed to identify, assess, and foster the growth of our high potential and high performing individuals. Anchored around the eight Lupin Leadership Competencies, the framework focuses on three key areas: succession plans for critical positions, career plans for top talent and individual developmental plans. The program covers employees from mid to senior management (Vice Presidents). For senior management, the program is applicable globally. The initiative was launched in 2022 with over 200 participants from across the globe, encompassing a talent assessment process, including 360-degree feedback, Thomas Profiling and talent reviews by Presidents and key stakeholders. The comprehensive review helps chart individual development plans tailored to each employee’s needs.

Top performing talents were identified within each department and the organization. Detailed career development plans were created for these high potential employees to enable continued growth. Additionally, successors were designated for all critical roles to ensure seamless leadership transition when required. Progress reviews will be conducted periodically to track the development of identified talents and successors against their personalized career plans.

Diversity, Equity and Inclusion

We take pride in DEI being a priority and a business objective for us. Our belief is simple. Our differences make us stronger. We are committed to creating a world where everyone feels included, valued and thrives. We have a system where we oversee diversity centrally and measure success with clear metrics but entrust local teams to implement it in ways that suit their context.

In FY24, all employees who underwent assessments were evaluated by the Talent Council and the President.

Corporate Overview Statutory Reports Financial Statements 105

==> picture [522 x 28] intentionally omitted <==

----- Start of picture text -----

Our DEI Programs
----- End of picture text -----

==> picture [125 x 654] intentionally omitted <==

----- Start of picture text -----

Groups of Support
for Different Voices
Gender
Sensitization
Workshops
Celebrations
----- End of picture text -----

Lupin Women’s Network is a platform for women employees to network, share ideas, and drive growth, support, and well-being initiatives.

iMpact is a mentoring program for women at Lupin that provides career advice and support from certified mentors. Through structured sessions and feedback, women are guided to elevate their voices and perspectives in their careers.

Returnity supports employees returning after their maternity leave with comprehensive programs to ease them into the workforce, including workshops and tailored support for both mothers and their managers. We run pre-maternity dialogues, ensure periodic check-ins during their leave, and offer a structured return-to-work program.

Gender Sensitization Workshops are conducted annually to raise awareness, promote gender equality, and create an inclusive environment, addressing discrimination and empowering individuals. This year, we also hosted virtual best practices sessions, gathering insights from industry leaders to drive continuous improvement and innovation.

D&I Drives were organized in Delhi, Mumbai, Bangalore and Hyderabad, promoting awareness for an equitable workplace. The event witnessed active participation of over 200 women.

International Women’s Day, Men’s Day, and Pride Month were celebrated through talks, health camps, themed activities, and LGBTQ+ inclusivity workshops to embrace diversity and honor contributions.

Unstoppables is an annual self-defense program for female employees. It equips them with safety and self-defense skills for various situations, including cybercrime, and prepares them to tackle these challenges as effectively as possible.

Building a family-friendly work culture is important to create positive, connected and trusting teams. LWN organized various activities for our employees’ children, including a painting competition, public speaking contest, and Waste to Wow challenge. 135 children from Lupin Pune participated enthusiastically in these events.

106 LUPIN LIMITED | Integrated Report 2023-2024

To drive Lupin’s diversity strategy and targets, we have refreshed and reformed our diversity councils to facilitate central control over strategy and local control over implementation. The strategy has been reformed to establish a governance mechanism for tracking and monitoring DEI progress. Our five business diversity councils include:

• Research and Development for Pune

• Biotech R&D and manufacturing division of Pune

• Corporate

• Manufacturing and Quality, and

• IRF

==> picture [176 x 32] intentionally omitted <==

----- Start of picture text -----

FY24 Women Workforce, U.S.
----- End of picture text -----

==> picture [175 x 32] intentionally omitted <==

----- Start of picture text -----

FY24 Women Workforce, India
----- End of picture text -----

==> picture [174 x 32] intentionally omitted <==

----- Start of picture text -----

FY24 Women Workforce, ROW
----- End of picture text -----

==> picture [525 x 32] intentionally omitted <==

----- Start of picture text -----

Category FY24 Category FY24 Category FY24
----- End of picture text -----

Share of women in junior management positions Share of women in STEM- related positions Share of women in management positions in revenue generating functions (such as sales or that contribute directly to the output of products or services) Share of women in management positions Share of women in top management positions	39% 3% 9% 8% 0%	Share of women in junior management positions Share of women in STEM- related positions Share of women in management positions in revenue generating functions (such as sales or that contribute directly to the output of products or services) Share of women in management positions Share of women in top management positions	14% 31% 20% 23% 1%	Share of women in junior management positions Share of women in STEM- related positions Share of women in management positions in revenue generating functions (such as sales or that contribute directly to the output of products or services) Share of women in management positions Share of women in top management positions	45% 37% 32% 26% 25%

Category	Women	Men
Mean (INR) 1,141,668 894,127 Median (INR) 652,688 578,173

==> picture [523 x 28] intentionally omitted <==

----- Start of picture text -----

Gender Pay Break Up, India
----- End of picture text -----

==> picture [524 x 33] intentionally omitted <==

----- Start of picture text -----

Level Number of Number of Men Average Average Men
Women Women Salary Salary
----- End of picture text -----

Level	Number of Women	Number of Men	Average Women Salary	Average Men Salary
Executive level (base salary + other cash incentives) 21 193 Management level (base salary only) 248 1,908 Management level (base salary + other cash incentives) 248 1,908 Non-management level (base salary only) 716 15,165			8,143,530 2,063,817 2,105,882 620,369	11,458,111 2,120,855 2,220,621 557,425

Corporate Overview Statutory Reports Financial Statements 107

Assessing Performance

As the future of work evolves, our approach to performance management must align with it, too. We continuously refine our annual performance process to ensure transparency, fairness, and robustness through:

• Collaborative goal setting and development plans with employees, rather than a traditional unilateral approach

• Performance conversation documents that track progress in Key Result Areas that enable us to identify development needs and provide timely support

• Continuous feedback through a newly launched platform, Success Factor, in addition to annual reviews

• Introduction of self appraisal forms for all employees, allowing them to rate themselves against objectives

• Upgraded portal capturing metrics from ratings to calibration

Linking Performance to ESG and Materiality

Our leaders guide their teams through this process and ensure that individual goals are aligned with Lupin’s Leadership Competencies and Values Framework. Further to ascertain our commitment to our ESG goals and material KPIs, all Presidents have ESG goals as their individual goals and Lupin has ESG goals in its corporate goals – if the goals are met or not met/achieved, then the compensation of the Executives is affected.

Our materiality assessment has identified the top 3 material KPIs for enterprise value creation

• Accessibility and Affordability

• Responsible Supply Chain and Decarbonization

• Data Privacy and Protection

All these 3 KPIs are covered under the ESG goals as well as directly linked to the performance assessment of responsible executives.

Supporting the well-being of all

We believe that nurturing employee well-being is crucial to cultivating resilience in our workplace. We want to create a welcoming environment in the company that people are proud to be a part of, where they can build successful careers while contributing to improving patients’ lives. We provide a competitive total rewards program covering pay, benefits (health insurance, parental and adoption leave, sabbatical), learning opportunities and well-being initiatives. While local cultures and regulations influence the specifics of our offerings in each country, our employee well-being strategy remains global in its scope.

To support physical well-being, we offer diverse fitness programs and workshops, including yoga, zumba, nutritional guidance, mindfulness practices and other engaging activities. These initiatives encourage our

employees to incorporate regular exercise into their daily routines. Annual health checkups are also organized to monitor the overall well-being of our workforce. Our Sikkim Lupin Women’s Network organized a women’s football tournament on International Women’s Day this year. The event brought together employees from various peers, including Cipla, Zydus and Golden Cross, to celebrate inclusivity and a spirit of togetherness.

The scope of our well-being programs extends beyond physical health as we understand that true well-being encompasses more than just an active lifestyle. We conduct webinars on holistic health and wellness, providing valuable insights and strategies to help our employees thrive personally and professionally. We offer work from home and flexible working hours if needed. This approach allows employees to maintain a healthy worklife balance when faced with unique circumstances or obligations outside the workplace.

Ensuring our employees feel seen, heard, and appreciated is fundamental to our strategy. This year, we launched BRAVO 2.0!, an online platform to celebrate individuals who champion Lupin’s core values. New features include spot recognition and the option for users to nominate any deserving colleague across all our India locations (excluding IRF, which continues using the Shabaash program).

The Desh Bandhu Gupta Spirit of Lupin Awards is our apex awards program, named after our visionary Founder. The program pays homage to his belief in recognizing and honoring individuals who embody the values of innovation, dedication, and compassion in advancing healthcare for all. Last year, we witnessed over 10,000 nominations across six regions and our six core values. Such an outpour of recognition for our employees’ exceptional contributions inspired us to extend our gratitude beyond the walls of our company. Motivated by the nominations, we planted 10549 trees, one for each nomination across various locations.

Prioritizing Mental Health through WeCare

We are taking deliberate actions to destigmatize mental health at work to help us lead with empathy and openness. We organize stress management workshops to equip employees with coping strategies and resiliencebuilding techniques, while mindfulness programs, meditation sessions, and relaxation techniques have been introduced to promote mental clarity and emotional balance.

Through the WeCare program, we support our employees in managing personal and workplace stress. Employees can access curated content on emotional and mental health tailored for the Indian context through an online platform. Counseling is confidential and options include telephone, online, and video sessions, with support also extended to immediate family members.

108 LUPIN LIMITED | Integrated Report 2023-2024

Employee Engagement

In order to improve employee engagement, the renowned McKinsey framework of the Organizational Health Index was administered by the said. The survey had a Global Employee response rate of 85%. The overall engagement score was 80% globally and 89% for India. Post administration of the survey, a structured communication plan was rolled out for the respondents. Detailed action plans were formulated subsequent to business/functionwise focused group discussions. These action plans will be monitored over a period of time as the OHI is a Biennial process.

Human Rights

Lupin signed on to the United Nations Global Compact in April 2023 and is committed to the UNGC’s Ten Principles on respecting internationally proclaimed human rights and operating responsibly labor, environment and anti-corruption. Guided by our Human Rights Policy, we respect and promote human rights across our operations, business relationships, and communities we work with. We do this through:

• Sensitization Efforts: As it’s a shared responsibility to uphold these values, we conduct periodic human rights awareness sessions to build an understanding

and respect for human rights within our workforce. This year, we organized a mandatory annual human rights refresher for our Indian teams led by Mr. Amit Patil, a renowned social and sustainability expert and trainer. We also ensure that all new hires receive human rights training during onboarding.

• Responsible Management: To support the implementation of our human rights policies, we have established site-level Human Rights Core Committees led by the respective site heads. Each committee has a fair representation from departments, managers, junior employees, female employees, and contract employees, and meets every quarter. They ensure policy governance, track key metrics every quarter and address any related concerns or grievances that may arise. Through human rights audits, we aim to identify potential risks arising from our activities and effectively manage them. We have expanded the coverage of the audits, starting with five sites last year to encompass all manufacturing facilities across India for Lupin and Lupin Manufacturing Solutions this year. During the human rights assessment audits, our sites undergo thorough evaluation against the key parameters listed below that are essential for ensuring human rights excellence.

==> picture [523 x 218] intentionally omitted <==

----- Start of picture text -----

Fair Wages, Equal Environment, Forced Labour Freedom of Diversity and Child
Remuneration, Health and and Human Association and Inclusion Labour
and Benefits Safety Trafficking Right to Collective
Bargaining
Community Reporting Anti- Non- Non-Retaliation
Engagement Concerns Harassment Discrimination
----- End of picture text -----

• Engaging our suppliers and business partners: We expect and encourage all our third parties to uphold our values and follow our human rights standards as outlined in our Third party Code of conduct.

For details about our framework for safeguarding human rights and reporting concerns, see our Human Rights Policy.

Corporate Overview Statutory Reports Financial Statements 109

Third-party Audits at Manufacturing Sites

Independent third-party auditors conducted the audits to ensure on-site compliance with Lupin’s Human Rights Policy.

Out of Lupin’s 15 total sites, 10 have been rated ‘Platinum’ while the others have received a ‘Gold’ rating. To sustain and enhance the overall site level score and the site rating, we have rolled out a few special projects at every site.

One such project was the ‘Process Improvement in the vendor billing cycle.’ During a Human Rights Audit, it was observed that while third-party contractors were paying their employees within the stipulated period, the pay dates varied across vendors. This posed a risk of perceived discrimination since Lupin’s permanent employees were paid on the last day of the month. To address this issue, a cross-functional team comprising HR location leads, administration, financial shared services, and procurement was formed.

The team renegotiated agreements with contractors, allowing for shorter credit periods and a priority payout partner every month. Standard Operating Procedures were developed, approved, and implemented to standardize the payment date for vendors and their thirdparty contractual employees across all locations in India. This initiative improved engagement among third-party contractual employees across our locations in India by ensuring a uniform and fair pay date aligned with Lupin’s permanent employees.

Health and Safety

Protection of our workforce is of utmost importance to the organization. Our Occupational Health and Safety (OHS) policy is a guiding principle in fostering a safe and healthy workplace environment. We are committed to complying with all relevant laws and regulations while promoting the adoption of health and safety management standards across our manufacturing locations, R&D units, and offices.

We have implemented well-defined OHS management systems that delineate roles and responsibilities. This approach ensures the successful integration of OHS practices across all business processes and supports the effective participation of workers in determining and implementing preventive measures.

Proactive Risk Mitigation Strategies

Our robust Hazard Identification and Risk Assessment systems, coupled with comprehensive risk management processes, enable us to identify and implement effective control measures for potential risks. We employ a multifaceted approach, including HAZOP assessments for API products and processes, risk assessments for formulation units, and job safety analyses to gain a thorough understanding of potential hazards. To ensure readiness in emergencies, our team conducts regular mock drills to verify the operational effectiveness of our mitigation strategies. We prioritize rapid access to

medical services, including the provision of ambulances and the availability of antidotes, ensuring prompt and effective response in critical situations.

Continuous Improvement and Stringent Oversight

Ensuring effective health and safety initiatives is an ongoing process. We conduct monthly reviews of our environmental, health, and safety (EHS) performance at both site and corporate levels. These reviews play a crucial role in identifying constraints and developing improvement measures. Our sites are equipped with dedicated EHS units that facilitate the integration of safety management systems with annual performance appraisals, establishing clear safety performance targets. Our health and safety systems undergo rigorous internal and external audits to maintain the highest standards. In the event of an incident, our Incident Management System enables thorough investigation and implementation of appropriate remedial actions.

Established channels for reporting

We actively encourage our employees and workers to report any work-related hazards or potentially dangerous situations. Individuals can report near misses, injuries, and incidents to their respective department heads. Our specialized safety team is responsible for conducting root-cause analyses of incidents and implementing preventive actions to avoid recurrences.

Celebrating Excellence through the Lupin Environment, Health and Safety Awards and Accolade System

The EHSAAS initiative acknowledges and rewards employees and partners for their exceptional contributions towards EHS aspects of our operations, including EHS performance improvements, greenhouse gas reduction measures, resource conservation efforts, and injury reduction. This reward and recognition system will strengthen the EHS-driven culture within our facilities.

==> picture [250 x 248] intentionally omitted <==

110 LUPIN LIMITED | Integrated Report 2023-2024

Health and Safety, India

Category	FY24	FY24	FY24	FY24	FY23	FY23	FY23	FY23
	Lost Time Injury Frequency Rate	Total re- cordable work- related injuries	Number of Fatalities	Accident Frequency Rate (per one million man hours worked)	Lost Time Injury Frequency Rate	Total re- cordable work- related injuries	Number of Fatalities	Accident Frequency Rate (per one million man hours worked)
Employee 0.00 Contractual 0.12 Total 0.07		34 60 94	0 0 0	1.62 2.48 2.08	0.05 0.09 0.069	37 86 123	0 0 0	1.75 3.85 2.83

Category	FY22	FY22	FY22	FY22	FY21	FY21	FY21	FY21
	Lost Time Injury Frequency Rate	Total re- cordable work- related injuries	Number of Fatalities	Accident Frequency Rate (per one million man hours worked)	Lost Time Injury Frequency Rate	Total re- cordable work- related injuries	Number of Fatalities	Accident Frequency Rate (per one million man hours worked)
Employee 0.26 Contractual 0.16 Total 0.21		65 145 210	0 0 0	2.81 5.82 4.37	0 0.21 0.11	79 179 258	0 0 0	3.58 7.63 5.67

==> picture [95 x 57] intentionally omitted <==

of employees and contractors over the last five years.

Corporate Overview Statutory Reports Financial Statements 111

We have proactively raised awareness about road safety and promoted a culture of defensive driving among our employees.

With top management’s endorsement, we have partnered with specialized trainers to conduct comprehensive onsite defensive driving training programs across our manufacturing sites in India, including LRP, Lupin Diagnostics, Lupin Digital Health, and the Head Office.

Physical and online training sessions were conducted for the IRF business employees.

This initiative extends to new hires during induction, and road safety kits are distributed to employees.

In FY24, we provided defensive driving training to 7,021 employees, aiming to contribute to reducing accidents and creating a safer environment for everyone on the road.

Effective safety and health practices stem from a well-trained and informed workforce. To that end, we conduct safety and health training across all Lupin manufacturing sites, utilizing a diverse array of training modes. These include:

Classroom Training: Interactive sessions facilitated by subject matter experts.

• On the Job Training: Hands-on, practical training sessions conducted at the workplace, ensuring direct application of safety procedures.

• Toolbox Talks: Brief, focused discussions on specific safety topics, reinforcing best practices and raising awareness.

• Digital Learning: Leverage the L2LMS/SABA training platform to provide accessible and engaging online safety training modules.

A few examples of safety training programs are material safety data sheet, laboratory safety, chemical safety, near-miss reporting, process safety, and basic firefighting.

A few examples of health training topics are first-aid training, health and hygiene, prevention of eye injury, awareness on hypertension and diabetes.

==> picture [522 x 284] intentionally omitted <==

112 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [222 x 48] intentionally omitted <==

==> picture [216 x 67] intentionally omitted <==

Contributing to a Cleaner, Better Tomorrow

Our commitment to environmental sustainability is fundamental to building trust with society and aligns with our goal of manufacturing high-quality, affordable medicines. Sustainable operations are paramount to our mission of improving lives, ensuring our efforts are not compromised by adverse environmental impact.

We continue to reduce emissions, water consumption, and waste disposal in our operations, in line with our 2025 targets. In 2023, we integrated environmental sustainability as a criteria into supplier contracts and started working with them to define actions to reduce emissions across our supply chain.

==> picture [72 x 72] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 113

114 LUPIN LIMITED | Integrated Report 2023-2024

Progress and Highlights

==> picture [523 x 33] intentionally omitted <==

----- Start of picture text -----

Focus Area Target Progress
----- End of picture text -----

Focus Area Climate and Energy	Target	Progress
	Reduce our Scope 1 and Scope 2 GHG emissions by 38% from 2022-23 levels by 2030 (aligned to a 1.5 degree science-based reduction pathway)	Achieved 21% reduction in Scope 1 & 2 from the previous year (Scope 1: 29% reduction and Scope 2: 19% reduction)
Addressing Water Security	Recycling 50% of our total water withdrawal in our Indian operations by 2025	44% of total water withdrawn recycled in FY24
Waste Management	70% of the hazardous waste generated in our Indian operations will be sent to cement plants for co- processing by 2025	89% of total incinerable hazardous waste sent to cement plants for co- processing Goal Achieved

==> picture [105 x 171] intentionally omitted <==

----- Start of picture text -----

Climate and Energy
Addressing Water
Security
Waste Management
----- End of picture text -----

Ensuring Good Governance Practices

EHS Audits

Our environmental governance, guided by our EHSS policy, focuses on resource efficiency, pollution prevention, energy conservation, water recycling, and waste reduction. Our ESG Committee monitors compliance with environmental legislation and measures the effectiveness of our management systems.

==> picture [250 x 73] intentionally omitted <==

----- Start of picture text -----

13 24
Internal Audits External Audits
----- End of picture text -----

All our sites are ISO 14001 certified and adhere to robust environmental management systems. We regularly monitor our EHSS practices and performance, reporting findings comprehensively. Our EMS audit strengthens this process, ensuring regulatory compliance. Results are shared with the Board once in six months, facilitating discussions around critical EHSS aspects and identifying areas for improvement. This enables us to address gaps and continuously enhance our environmental performance and management system. We have initiated an EHSAS reward recognition program for employees and contractors for exemplary contributions to ESG targets, GHG emission reductions, water-saving initiatives, etc.

Climate Strategy and Action

As a responsible and resilient business, we acknowledge the potential impact of climate change on the environment, society, governance, and the economy. Our comprehensive decarbonization strategy enables us to understand our environmental impact better and ensure we implement necessary measures to reduce it. This includes procurement of renewable energy, comprising captive solar and wind generation and a switch over to briquette boiler operations with renewable fuel sources.

==> picture [90 x 54] intentionally omitted <==

Lupin Limited joins the Science Based Targets initiative and sets 2030 GHG emission targets.

Addressing Energy Security

In FY24, our global energy consumption stood at 2,842,807 GJ, of which India manufacturing operations accounted for 97% of consumption.

Our primary energy consumption is from grid-purchased electricity, with additional sources including diesel for DG sets and fuel for company owned vehicles. We have been lowering our consumption and improving the efficiency of our physical infrastructure. Additionally, we are increasing the contribution of renewable energy sources in our energy mix YoY.

Corporate Overview Statutory Reports Financial Statements 115

==> picture [80 x 9] intentionally omitted <==

==> picture [56 x 14] intentionally omitted <==

==> picture [21 x 10] intentionally omitted <==

==> picture [28 x 9] intentionally omitted <==

==> picture [16 x 9] intentionally omitted <==

==> picture [49 x 10] intentionally omitted <==

==> picture [19 x 10] intentionally omitted <==

==> picture [60 x 12] intentionally omitted <==

==> picture [14 x 9] intentionally omitted <==

==> picture [40 x 9] intentionally omitted <==

==> picture [15 x 9] intentionally omitted <==

==> picture [30 x 12] intentionally omitted <==

==> picture [15 x 10] intentionally omitted <==

==> picture [31 x 9] intentionally omitted <==

==> picture [49 x 10] intentionally omitted <==

==> picture [29 x 13] intentionally omitted <==

==> picture [19 x 10] intentionally omitted <==

==> picture [87 x 65] intentionally omitted <==

==> picture [129 x 13] intentionally omitted <==

==> picture [34 x 10] intentionally omitted <==

==> picture [21 x 10] intentionally omitted <==

==> picture [20 x 10] intentionally omitted <==

==> picture [21 x 10] intentionally omitted <==

==> picture [18 x 9] intentionally omitted <==

==> picture [15 x 10] intentionally omitted <==

==> picture [22 x 10] intentionally omitted <==

==> picture [21 x 10] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

==> picture [21 x 10] intentionally omitted <==

==> picture [43 x 10] intentionally omitted <==

==> picture [154 x 13] intentionally omitted <==

Share of renewable fuel in the energy mix increased by 4 times, from 109,049 GJ in FY23 to 487,713 GJ, contributing to 33.8% of total energy derived from fuel sources in FY24.

Our energy management strategy is multifaceted, encompassing several key elements:

==> picture [522 x 31] intentionally omitted <==

----- Start of picture text -----

Energy Management
----- End of picture text -----

==> picture [103 x 373] intentionally omitted <==

----- Start of picture text -----

Energy
Efficiency
Renewable
Energy Adoption
Embracing
Alternate
Fuels
----- End of picture text -----

We have undertaken a phased study across all our facilities to evaluate their energy efficiency potential. This comprehensive assessment helps us identify opportunities for improvement and determine the optimal energy sources for each site. Replacement of outdated conventional luminaires with energy efficient LED lights.

Upgrading conventional AC motors to DC electronically commutated motors in air handling units.

Optimizing refrigeration plants, fine-tuning pumping systems, and improving the efficiency of boiler and utility equipment. These efforts have yielded substantial improvements in energy efficiency and significant reductions in power costs. We have installed screw press for dewatering of sludge over conventional methods thereby reducing the energy consumption and CO2 reduction.

We have significantly bolstered our commitment to renewable energy at our Ankleshwar and Dabhasa sites, adding approximately 5.3 MW to our renewable power capacity. We are constantly looking to scale up the utilization of renewable electricity to power our operations by installing rooftop solar panels and through open access of solar and wind energy. Our overall total renewable energy mix has enhanced from 5.3% to 10.6%.

==> picture [57 x 12] intentionally omitted <==

==> picture [66 x 13] intentionally omitted <==

==> picture [78 x 11] intentionally omitted <==

==> picture [72 x 10] intentionally omitted <==

==> picture [78 x 12] intentionally omitted <==

==> picture [57 x 11] intentionally omitted <==

==> picture [44 x 13] intentionally omitted <==

==> picture [56 x 10] intentionally omitted <==

We embrace the use of alternate fuels for our operational processes to reduce our reliance on non-renewable sources, such as the use of biomass. We have introduced Agro waste boilers as a more environmentally friendly fuel source at all our sites including Nagpur, Mandideep, Pithampur, Sikkim, Tarapur, Dabhasa and Vizag.

==> picture [70 x 13] intentionally omitted <==

==> picture [60 x 12] intentionally omitted <==

==> picture [26 x 10] intentionally omitted <==

116 LUPIN LIMITED | Integrated Report 2023-2024

Carbon Footprint

Reducing GHG emissions, particularly CO2 emissions, is critical to mitigating the adverse effects of climate change. We are taking concrete steps towards decarbonizing our operations.

Of our total emissions, Scope 1 and Scope 2 emissions comprise 5% and 21% of our GHG footprint, respectively. 74% are emitted from our value chain (Scope 3). Most of our Scope 1 (direct) emissions originate from boilers used in operations for producing steam, electricity, and wastewater treatment facilities, while our Scope 2 (indirect) emissions are from purchased electricity for running facilities and operations. Our Scope 3 (indirect) emissions include those from purchased goods and services, capital goods, processing of sold products, and others. We align our reporting and monitoring practices with the SBTi requirements and develop systems to reduce our Scope 1 and Scope 2 emissions, reaffirming our commitment to responsible environmental stewardship.

GHG Emissions

==> picture [251 x 153] intentionally omitted <==

----- Start of picture text -----

GHG Emissions
901,520
854,936
340,945
277,438
87,068 62,142
FY23 FY24
Scope 1 Scope 2 Scope 3
----- End of picture text -----

The scope 1 and scope 2 emissions reduced by 29% and 19% respectively, owing to dedicated investments into phase out of fossil fuels and adoption of renewable power for our operations.

Scope 3 Emissions

==> picture [39 x 10] intentionally omitted <==

==> picture [30 x 9] intentionally omitted <==

==> picture [101 x 12] intentionally omitted <==

==> picture [29 x 10] intentionally omitted <==

==> picture [29 x 10] intentionally omitted <==

==> picture [79 x 10] intentionally omitted <==

==> picture [44 x 12] intentionally omitted <==

==> picture [62 x 12] intentionally omitted <==

==> picture [27 x 10] intentionally omitted <==

==> picture [26 x 10] intentionally omitted <==

==> picture [47 x 10] intentionally omitted <==

==> picture [29 x 9] intentionally omitted <==

==> picture [70 x 12] intentionally omitted <==

==> picture [48 x 48] intentionally omitted <==

==> picture [64 x 12] intentionally omitted <==

==> picture [27 x 9] intentionally omitted <==

Biomass Boilers

Fuel consumption in boilers forms a significant part of our Scope 1 emissions. To reduce this, we have replaced oilfueled boilers with biomass briquette boilers.

Biomass briquettes, made from biodegradable waste, significantly lower GHG emissions compared to FO/LSHS/ LDO. They are typically produced from organic waste such as rice husk, sawdust, bagasse, groundnut shells, and other agricultural or forest waste. Biomass briquette boilers not only have lower emissions but also provide farmers with an alternative to monetize agro-waste. Additionally, the biomass briquette supply chain has strengthened over time to fulfill the necessary demand.

Ten of our twelve manufacturing sites in India make use of biomass briquette boilers for steam generation. Installation is underway at one additional site and is expected to be completed in FY25.

Climate Risk Assessment

At Lupin, we recognize the importance of being resilient and protecting our business and stakeholders against external threats. To this end, we prioritize monitoring and addressing a wide range of external factors to ensure that we are able to mitigate any risk. In our commitment to combating climate change, we fully support the Paris Agreement and aim to reinforce our response to risks posed by climate change. We will do this by limiting the rise in the global average temperature to well below 2°C and endeavor to limit the temperature increase to 1.5°C to minimize severe climate change.

To achieve this goal, we launched strategic initiatives to comprehensively understand the effects of climate change on our business and therefore have put in place, measures to combat the same. Further to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), we conducted a climate risk assessment, including scenario analysis, in FY23 to study the impact of climate change on the business in different climate scenarios. This risk assessment covered both physical climate risks and transition-related risks to the business, adhering to leading internal frameworks and guidelines, such as the TCFD and the Carbon Disclosure Project.

==> picture [48 x 10] intentionally omitted <==

==> picture [51 x 10] intentionally omitted <==

==> picture [37 x 10] intentionally omitted <==

==> picture [34 x 10] intentionally omitted <==

By 2030, we aim to reduce our Scope 1 and Scope 2 GHG emissions by 38%, benchmarked against FY23 levels.

Corporate Overview Statutory Reports Financial Statements 117

Physical Risk Assessment

Our physical risk assessment encompassed 16 locations/ sites globally, based on the IPCC AR5 Risk Assessment Framework. We analyzed two climate scenarios: SSP 2 (Middle of the Road) and SSP 5 (Fossil-fueled Development). Anomaly (difference from the average or baseline) was calculated for various indicators such as

temperature, precipitation, cooling degree days, cyclones, and water stress. For both scenarios, we have considered two time periods – 2020-2039 and 2040-2059, to develop a composite climate risk index and a vulnerability index, taking into account exposure, sensitivity, and adaptive capacity. Key risks that Lupin’s units potentially might face include:

==> picture [523 x 32] intentionally omitted <==

----- Start of picture text -----

Risk Type Location Impact Adaptation Measure
----- End of picture text -----

Risk Type	Location	Impact	Adaptation Measure
Cyclones Mumbai Visakhapatnam USA		Disconnection or disruption of internet and/or phone services or electricity leading to disruption in operations. Infrastructure failures due to cyclones/winds, such as the collapse of the Galvalume roofng system, failure of connections/structures, progressive collapse of roof steel trusses, and breakage of window panes at the plants and offce locations.	• Policy on building all new infrastructure considering the cyclone and wind impacts. • Retroft all existing structures as per IS:875 (Part 3) codes for various types of buildings and structures. • Provision of shelter and resilient assembly places for staff in case of climate or industrial disasters. • Identify cyclone weak spots (roofng, shafts, chimney stacks etc.) and review transmission lines and potential consequences of power cuts.
Sea Level Rise Mumbai Visakhapatnam		Saltwater inundation.	• Business interruption/relocation plans. • Additional insurance for buildings/ assets. • Flood barriers and plantations. • Avoid new projects in low-lying coastal zone.
High Temperature Vadodara Kalpataru, Mumbai Aurangabad Mandideep		Temperature increase impacting the building structures. Building energy use will increase if climate extremes become the norm. High temperature variability impacting the comfort level and the productivity of the staff. Heat waves are the leading causes of weather-related morbidity and mortality and will directly impact the health of the staff/communityin the vicinity.	• Conduct an internal survey on heat- related impacts on staff. • Heat Resistant Roofng, Heat Resistant Tiles. • Install effcient heating, ventilation and air-conditioning (HVAC) systems. • Assess high temperature impacts on energy usage/ product storage/ development. • Conduct a detailed study on lowering the increasing cost of cooling due to increased temperatures.
Dry Spell and Water Stress Mumbai Vadodara Indore Mandideep		Dry spells may not directly impact the Lab’s infrastructure except through water scarcity. This will impact its cooling systems, water requirements, pools etc. Water scarcity can cause Health and Safety issues. Reduced water availability may also impact sanitation and hygiene needs.	• Grey water reuse and Recycling systems. • Rainwater harvesting is also an important measure that may be installed. • Annual training programs on water- saving measures. • Site-based water usage minimization program. • Exploration of alternate sources of water other than groundwater.

118 LUPIN LIMITED | Integrated Report 2023-2024

Transition Risk Assessment

We conducted a scenario analysis up to 2050 to assess risks from anticipated changes in the policies, regulations, markets, and technologies due to climate change. Using Network for Greening the Financial System Scenarios, we partnered with an academic consortium from the Potsdam Institute for Climate Impact Research, International Institute for Applied Systems Analysis, University of Maryland, Climate Analytics and Eidgenössische Technische Hochschule Zürich for this assessment. The transition pathways for the NGFS Scenarios are differentiated by several key design choices relating to long term temperature targets, net zero targets, short term policy, overall policy coordination and technology availability.

Addressing Water Security

Water stewardship is integral to our Sustainable Development Plan 2030, underscoring its critical role in our business operations and broader societal wellbeing. Recognizing the significance of water quality and availability, we remain steadfast in our commitment to developing sustainable water supply systems across our operations. Operating in water-scarce regions, we prioritize compliance with all water related regulations and maximize the use of recycled water from our effluent treatment and reverse osmosis facilities for utilities.

At the community level, we extend our water conservation efforts through initiatives such as rainwater harvesting projects facilitated by our CSR team. Furthermore, we continuously optimize freshwater usage and enhance water efficiency within our operations. To mitigate groundwater risks, we implement projects that place emphasis on surface water sources and deploy desalination plants. Moreover, our commitment to responsible wastewater management is evident through the establishment of wastewater recycling and zero liquid discharge in most of our sites. These initiatives ensure the safe disposal of treated waste, minimizing the risk of groundwater contamination and reinforcing our commitment to environmental sustainability.

Water Savings League

Water conservation plays a critical role in our sustainability journey. We actively invest in the latest technologies to reduce our freshwater consumption and are constantly exploring newer avenues to strengthen it.

We launched the Water Saving League 2023, a gamified initiative under ‘Mission Jal Shakti’ to optimize water usage in our Pithampur facility. As part of this program, awareness camps were held, and employee participation was actively sought to discuss innovative ideas to reduce water usage at the site. Our employees shared several novel ideas, which were implemented at Pithampur. Some of them include:

• Rooftop rainwater harvesting system

• Use of rainwater in the fire hydrant tank by replacing fresh water for makeup during the monsoon season

• Retrofitted flow restrictors in water taps to improve water use efficiency

• Removal of unwanted tappings from the mains water supply line

• Identification of unaccounted water use points and installation of water flow meters at those points for effective monitoring

Collective participation by employees helped us to reduce our freshwater consumption by 16863 KL.

In FY24, we recycled 43.8% of the total water withdrawn for our India operations. We aim to achieve 50% recycling of the water used in India operations by 2025.

==> picture [522 x 177] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 119

Enabling Circular Economy

Lupin’s waste management strategy is driven by the 3R principle: Reduce, Reuse and Recycle. We diligently inventory our waste streams, including hazardous waste, non-hazardous waste, e-waste, biomedical waste, and more, and ensure their recycling or disposal through third parties, adhering to all relevant government regulations.

==> picture [250 x 171] intentionally omitted <==

----- Start of picture text -----

tons of waste
43,523 disposed globally
tons of waste
8,129 recycled
of incinerable
hazardous waste is
89.4%
sent for co-processing
to cement plants
----- End of picture text -----

Hazardous Waste

At our sites, hazardous waste comprises 3% plastic liners and drums, 13% chemical gypsum, 22% spent solvents, and 62% other hazardous wastes designated for landfilling, disposal, incineration without energy recovery, and co-processing. In collaboration with our suppliers, we ensure responsible disposal of both hazardous and non-hazardous waste. Over the last two years, we have consistently repurposed 70% of disposed waste as alternate raw material or fuel for co-processing, underscoring our commitment to sustainability.

Non-Hazardous Waste

All non-hazardous waste produced in our facilities undergoes recycling or reuse processes. This encompasses STP sludge, paper, and food waste from our canteens. We have also implemented biomass composting systems, transforming biodegradable waste into high-quality organic compost within our premises.

Other Waste

requirements. We comply with the ‘Plastic Waste Management Rules’ of the Central Pollution Control Board, including Extended Producer Responsibility for the management of plastic waste and e-waste. We have recycled 2803 MT of post-consumer plastic waste, fulfilling 100% of our EPR target.

Biocomposter

The non-hazardous canteen waste from most of the sites was sent to piggeries/cattle farms. The horticulture waste, i.e., dry leaves, dry grasses, dead branches, etc., was stored inside the premises as it was not disposed of outside the plant.

Our Goa plant utilizes a biocomposter system to convert organic waste from canteens and gardens into compost, which is used as manure within the plant. The biocomposter operates odor-free, with minimal electricity consumption, and produces nutrient rich compost in 15 to 20 days, eliminating the requirement of storing the compost further for maturing and curing.

Antimicrobial Resistance

Lupin recognizes the importance of Antimicrobial Resistance stewardship in our sustainability strategy, as it directly impacts human and ecological well-being. AMR poses a significant threat to public health by reducing the effectiveness of antibiotics and other anti microbial drugs.

The excessive use and improper disposal of these drugs can lead to contamination of water bodies, soil, and food chains, leading to further adverse conditions. We actively assess the ecological impact of the Active Pharmaceutical Ingredients used in the manufacturing processes, discharge into water bodies, potential bioaccumulation in ecosystems, and overall toxicity to organisms. We frequently analyze the anti microbial content in the treated water discharge and ensure that the PNEC values of those AMRs are below the quantification limit. 6 manufacturing plants are Zero Liquid discharge plants where the treated effluent is recycled in the utilities, and there is no discharge outside the premises. We also undertake lifecycle assessments of our top 10 revenue generating products, from cradle to gate, to understand and mitigate the cumulative environmental impact of APIs. The lifecycle assessments will help us to assess the opportunities for reducing the ecological footprint.

All other waste, including e-waste, plastic waste, and biomedical waste, is disposed of as per regulatory

120 LUPIN LIMITED | Integrated Report 2023-2024

Biodiversity

Biodiversity holds immense significance for us due to the role it plays in the discovery and development of nutraceuticals. Natural resources serve as invaluable reservoirs for novel chemical compounds and active ingredients, making the preservation of biodiversity crucial to our industry’s innovation and sustainability. Last year, we formalized our commitment to zero deforestation, recognizing the integral link between forest ecosystems and the availability of key resources for drug development. Building upon this commitment, we have embarked on a comprehensive assessment of biodiversity.

We undertook a biodiversity risk assessment in three of our manufacturing sites: Tarapur, Mandideep, and Pithampur. Detailed surveys of flora and fauna within the core and buffer zones (10 km radius) of each site were conducted, focusing on biodiversity aspects. Utilizing the WWF Risk Filter and Encore tools, we identified key risks and dependencies, including physical, political, and reputational risks. Notable physical risks identified are extreme heat, tropical cyclones, pollution, and possible disruptions in water supply.

Our methodology for conducting biodiversity risk assessment included desk research, primary and secondary data collection to conduct vegetation and faunal assessments (including the computation of biodiversity indices) and reporting. Primary data comprises direct field observations across the three sites and remote sensing data. The core zone (plant area) and

buffer zone (defined as a radius of 10 km from the plant) at each of the three locations were physically surveyed. Secondary data included details of Environmental Impact Assessments, Plant Operation and Production Reports, Corporate Social Responsibility / Sustainability Reports, Satellite Imagery, etc.

Ashoka and Teak are two Flora species identified for conservation. Faunal surveys highlighted River Tern and Black Rail species for conservation efforts.

Utilizing the established methodologies endorsed by the Intergovernmental Platform on Biodiversity and Ecosystem Services, we have identified and analyzed dependencies and pressures exerted on biodiversity within the operational areas of the assessed manufacturing plants. The detailed Biodiversity Management Plan outlines recommendations to ensure no net loss of biodiversity, enhance ecological health, avoid degradation of critical habitats, and achieve our long-term sustainability goals.

Product Sustainability

Lupin employs Life Cycle Assessment tools to evaluate and communicate the environmental performance of

==> picture [558 x 308] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 121

our products across their lifecycle. Guided by ISO 14040 and ISO 14044 standards, we completed LCA studies for 10 products this year. The LCA study adopted a cradleto-gate assessment, which includes emissions from raw material production and the final stage of production. Furthermore, the product use phase and end-of-life stage are excluded as per the system boundary. The LCA software used was SimaPro, and the EcoInvent Database was used for the LCA Database to model the environmental impact of the selected products.

The report presents the data in the form of eleven midpoint indicators (including Ecotoxicity and resource depletion indicators) to evaluate the environmental impacts such as: Climate change/Global Warming Potential (GWP, kg CO2 equivalent), Ozone Depletion

Potential (ODP, kg R-11 equivalent, Human toxicity, cancer (CTUh), Human toxicity, non-cancer (CTUh), Particulate matter (kg PM2.5 eq), Ionizing Radiation (kBq U235), Photochemical Ozone Creation Potential (kg NMVOC eq.)/ Photochemical Ozone formation, Acidification Potential (mole H+eq.), Eutrophication, Terrestrial (mole N eq) Eutrophication, Freshwater (kg P eq), Eutrophication, marine (mole N eq), Freshwater Ecotoxicity Potential (FAETP, CTUe), Land use (kg C deficit), Water Use (m3 water eq), Mineral, fossil and ren resource depletion (kg Sb eq).

Further to the study, environmental hotspots which were identified are being addressed through decarbonization strategy and other environment action plans.

Products

==> picture [120 x 27] intentionally omitted <==

----- Start of picture text -----

Lisinopril
----- End of picture text -----

==> picture [120 x 27] intentionally omitted <==

----- Start of picture text -----

Cefaclor
----- End of picture text -----

==> picture [120 x 27] intentionally omitted <==

----- Start of picture text -----

Etanercept
----- End of picture text -----

==> picture [140 x 27] intentionally omitted <==

----- Start of picture text -----

Gluconorm
----- End of picture text -----

==> picture [120 x 27] intentionally omitted <==

----- Start of picture text -----

Rablet
----- End of picture text -----

==> picture [120 x 27] intentionally omitted <==

----- Start of picture text -----

Tonact
----- End of picture text -----

==> picture [140 x 27] intentionally omitted <==

----- Start of picture text -----

Budamate
----- End of picture text -----

==> picture [120 x 27] intentionally omitted <==

----- Start of picture text -----

Albuterol Sulphate
----- End of picture text -----

==> picture [120 x 27] intentionally omitted <==

----- Start of picture text -----

Levetiracetam
----- End of picture text -----

==> picture [120 x 27] intentionally omitted <==

----- Start of picture text -----

7 ACCA
----- End of picture text -----

==> picture [558 x 308] intentionally omitted <==

122 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [238 x 52] intentionally omitted <==

==> picture [369 x 67] intentionally omitted <==

==> picture [216 x 67] intentionally omitted <==

Enriching Lives of Our Communities

The Lupin Human Welfare and Research Foundation was established by our Founder, Dr. Desh Bandu Gupta, in 1988, dedicated to promoting good health and fostering economic growth through sustainable livelihood in India’s most marginalized regions. Over the last three decades, LHWRF’s efforts have centered around agriculture, animal husbandry, women’s empowerment, and rural industries. Through structured long term programs and strategic partnerships with governmental and nongovernmental entities, international development agencies, and philanthropic organizations, we have reached out to over 1.57 Mn beneficiaries in more than 4,771 villages across eight states in India. Various initiatives, such as upgrading local infrastructure and enhancing access to healthcare and education, have led to a positive impact on the lives and livelihoods of these communities. This demonstrates our unwavering dedication to social upliftment and economic development through collaborations with community-based organizations as well as local institutions.

==> picture [72 x 72] intentionally omitted <==

==> picture [71 x 72] intentionally omitted <==

==> picture [72 x 72] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements

123

₹256 Mn CSR Spend

300+ Suppliers Assessed on ESG Parameters

233,383 Beneficiaries

100%

Suppliers Covered under Supplier Code of Conduct

124 LUPIN LIMITED | Integrated Report 2023-2024

In FY24, we intensified our efforts in focus districts, benefiting over 195,000 families through our Livelihood program, screened over 25,000 villagers and treated 12,257 individuals through our Lives program.

Our Relationship with Communities

Strong relationships are crucial to the success of our CSR initiatives, and through LHWRF, we remain deeply committed to nurturing these bonds. We have fostered a culture of trust and honesty within our communities, laying the groundwork for meaningful change. We work with community-based institutions comprising local catalysts and influencers, playing a pivotal role in inspiring and motivating their fellow villagers. These grassroots leaders exemplify the Foundation’s values, driving social

transformation and empowering their communities to embrace positive change.

Strategic Focus Areas

Understanding the aspirations and perspectives of our communities is paramount in crafting effective programs. By prioritizing their voices and needs, we ensure that our initiatives are not just responsive but also tailored to address the specific challenges and opportunities within our communities. This approach underscores the importance of a nuanced, need-based strategy that places the empowerment and fulfillment of individuals at its forefront, driving sustainable change from within the community.

Lives Programs

Our Lives program, in collaboration with the governments, addresses service delivery challenges related to cardiovascular and chronic respiratory diseases. Over the past year, LHWRF has conducted 214 camps (154 in Alwar and 60 in Palghar), reaching 12,257 individuals in Maharashtra and Rajasthan.

Mobile Medical Van

• Inaugurated in July 2023

• Offers a comprehensive range of diagnostic services and medical support

• 18 health camps are held twice a month in nine selected health facilities in the Alwar district

• Improved access to essential healthcare services in the Alwar’s Rajgarh, Laxmangad, Reni, and Kherali blocks

• Enables early intervention, fostering the overall well-being of residents

Non-Communicable Disease Awareness

• Specialized NCD corners, offering tailored care and information, are set up in nine government health facilities in Alwar

• 130 street plays conducted, and over 500 wall paintings done in project villages to raise awareness

Corporate Overview Statutory Reports Financial Statements 125

Livelihood Programs

Our Livelihood Program empowers economically vulnerable rural communities in North and West India by offering locally tailored, sustainable solutions to improve incomes. It operates through internally and

externally funded projects developed in collaboration with grassroots institutions, municipalities, and community members, ensuring relevant, impactful interventions and effectively meeting community needs.

Highlights, FY24

Desh Bandhu Jan Utkarsha Pariyojna

850 households supported

Rajasthan and Maharashtra

Natural Resource Management and Efficient Resource Utilization

Water Storage capacity of 2,28,141 cubic meters was achieved

Rajasthan and Maharashtra

Skill Development and Enterprise Promotion

689 young individuals

Rajasthan and Maharashtra

Better Cotton Initiative

95,000 farmers

Maharashtra’s Dhule and Nandurbar

Soil Protection and Rehabilitation for Food Security

Farmers' Producer Organizations

24,000 marginal women farmers

19,411+ farmers

Six districts of Maharashtra

Maharashtra, Rajasthan, and Madhya Pradesh

==> picture [250 x 299] intentionally omitted <==

==> picture [250 x 299] intentionally omitted <==

126 LUPIN LIMITED | Integrated Report 2023-2024

• Flagship program launched in FY22

• Implemented in select villages of Bharatpur, Alwar, Pune, and Dhule districts of Rajasthan and Maharashtra, respectively

• The program seeks to reduce dependency on rain fed agriculture by promoting alternative income sources, ensuring sustainable economic empowerment

• Irrigation Facilities: Offered based on feasibility to enhance agricultural productivity

• Vegetable Cultivation: Encouraged among households with access to irrigation, promoting dietary diversity and income

• Goat Rearing and Poultry Units: Aimed at landless

• and artisan households to provide them with stable income sources

• Skill and Enterprise Development: Facilitates skill upgrading and provides job placement support for establishing small enterprises, both farm and off-farm

Key Impact

• Supported over 850 households in reducing their dependence on rainfed agriculture and facilitated the development of alternate sources of income

• Achieved a total water storage capacity of 2,28,141 cubic meters through the construction of 53 water harvesting structures, including check dams and ponds

• 689 young individuals trained in General Duty Assistant and Tailoring

• Implemented in Maharashtra’s Dhule and Nandurbar districts in partnership with the Better Cotton Initiative

• Supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit, the initiative aims to elevate cotton farming practices in Maharashtra, fostering sustainability, fair labor

• and better returns on investment

• Supported over 95,000 farmers in the Dhule and Nandurbar regions of Maharashtra to promote a holistic approach to sustainable cotton production

• Aims to double Better Cotton production by 2030

Elevating Agriculture Through Digital Innovation and Sustainability Practices

• Deploys an innovative educational framework, employing 2D animated videos in vernacular languages,

• Targeting women at the grassroots level who have access to smartphones.

Key Impacts of the Project

• Two project beneficiaries, Ms. Surekha Desale, a Woman Farmer, and Ms. Rekha Sonavane, the field facilitator, received recognition at an International Conference in Amsterdam

Corporate Overview Statutory Reports Financial Statements 127

Strong Governance

Robust governance mechanisms drive our social initiatives and optimize social capital. The Board of Trustees, supported by the CSR Committee and the LHWRF, oversees the implementation of our programs. The Board ensures effective CSR policy implementation and fund allocation, while the CSR Committee moderates plans, monitors projects, and evaluates impact. LHWRF directly manages project execution, ensuring ethical practices and compliance. Collaborations with government agencies, local partners, institutions, self help groups, NGOs, and experts enable us to leverage resources and expertise for successful implementation.

Impact Assessment Study

As responsible corporate citizens, we are cognizant of

the importance of regular evaluations to ensure that our programs make a meaningful impact. Such assessments also serve to reorient our programs to meet the needs of the community. In adherence to this, during FY24, we conducted an independent third-party impact assessment of district development programs in Dhule, Sindhudurg, Pune, Bharatpur, and Alwar. Conducted by CSR Box, this assessment evaluated key subprograms implemented by LHWRF, including agriculture, animal husbandry, skill and enterprise development, women empowerment, water resource development, tree plantation, upgradation of healthcare services, digitalization of schools and infrastructure development in rural areas. The study provided a comprehensive analysis of the social value of these programs, guiding our investment assessments.

==> picture [522 x 52] intentionally omitted <==

----- Start of picture text -----

Social Return on Investment
Areas Intervention
Sindhudurg Bharatpur Alwar Pune Dhule
----- End of picture text -----

Areas	Intervention	Social Return on Investment	Social Return on Investment	Social Return on Investment	Social Return on Investment	Social Return on Investment
		Sindhudurg	Bharatpur	Alwar	Pune	Dhule
Agriculture	Crop Yield Enhancement	44.61	3.06	12.56	16.90	5.69
	Promotion of Horticulture	11.60				12.20
	Bee Keeping			7.10
	Land Levelling					7.40
Animal Husbandry	Dairy		5.58	5.91	33.21	5.91
	Goat Rearing			2.93	0.43	4.76
	Poultry			6.00	1.45	2.24
	Fish Rearing	22.31
Rural Industrialization	Skill and Enterprise Development	43.98	4.66	22.30	6.95	5.04

==> picture [522 x 140] intentionally omitted <==

128 LUPIN LIMITED | Integrated Report 2023-2024

Employee Volunteering

Our Employee Volunteering initiatives have significantly impacted the communities we serve, with our team dedicating 19,188 hours of service to various meaningful activities. These efforts reflect our strong commitment to environmental, social, and governance (ESG) principles, reinforcing our role as responsible corporate citizens.

Environmental Sustainability: We organized cleanliness drives and planted 63,355 trees across multiple locations, contributing to ecological conservation and enhancing green cover

Community Health: Our teams organized and participated in blood donation drives, supporting local healthcare efforts

Education and Social Development: We conducted educational sessions, delivered guest lectures in schools, and distributed mid-day meals, ensuring that children received essential nutrition to support their education and overall development

Cultural and Social Cohesion: By celebrating important cultural days, we fostered community unity and promoted social cohesion

Rural Infrastructure: Our contributions to farm road development projects have improved accessibility in rural areas, enhancing the quality of life for local communities

Empowering Patients: Access, Care, and Outcomes

At the heart of our business philosophy lies our commitment to fostering profound relationships built on

transparency, trust, and open communication grounded in shared values. We nurture respectful and mutually beneficial connections with stakeholders, underpinning our business conduct. Our diverse network spans patients, healthcare professionals, channel partners, government entities, suppliers, shareholders, industry bodies, media, regulatory authorities, employees, and society.

Enhancing Patient Experiences

Throughout its history, Lupin has significantly impacted patients’ lives, particularly in the fight against TB, where we are the largest supplier of primary anti-TB medications. Our commitment to ensuring access to safe, effective, and quality medicines and health products is fundamental to preserving and improving the health of millions. Leveraging our global presence, we have pioneered health solutions for both regulated and nonregulated markets.

Recognizing the importance of comprehensive patientcentric care, we have expanded our scope to include diagnostics and healthcare solutions, initially focusing on cardiovascular and diabetes care. In response to evolving priorities and the demands of the digital era, Lupin has initiated a robust digital transformation program. This initiative aims to streamline patient interactions and internal processes, aligning with our commitment to improving healthcare accessibility and connectivity. By leveraging digital technologies, we facilitate timely interventions and enhance treatment efficiency, ultimately leading to better patient outcomes. Concurrently, we focus on optimizing processes across various functions to drive quality and efficiency improvements.

Through our digital platform connecting cardiovascular and diabetes patients with healthcare professionals and practitioners, we have significantly enhanced accessibility in healthcare delivery. This seamless integration facilitates quicker interventions, placing patient well-being at the forefront of our endeavors.

==> picture [522 x 213] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 129

Flagship Initiatives Targeted Towards Improving Patient Awareness

==> picture [86 x 32] intentionally omitted <==

SAARTHI Say Yes to Life

Revolutionary tool for mental health professionals in customized, regional languages. Improves treatment outcomes and supports patients and caregivers. Fosters open discussions and coping tips for anxiety, low mood, stress, and sleeplessness.

Pan-India

320,000 Patients Reached

Geographical Presence

==> picture [86 x 32] intentionally omitted <==

Jeet

Launched this year, Jeet is a trusted partner in cardiovascular care, offering a range of benefits including savings on medical costs, disease counselling, medication reminders and lifestyle support. The program promotes a healthy lifestyle by offering features like timely medication reminders and daily wellness activities, all designed to support heart health.

6000 Pan-India

Patients Reached

Geographical Presence

==> picture [86 x 32] intentionally omitted <==

Jai

We launched the Joint Airway Initiative (JAI), India’s first digital asthma educator platform, to provide comprehensive inhalation techniques to guide patients suffering from asthma and enable effective asthma symptom management.

Achieving Accessibility and Affordability

We are committed to ensuring that everyone, regardless of their geographical location or socio-economic status, benefits from our pharmaceutical innovations. In our efforts to combat TB, particularly in regions with limited resources, we operate multiple state-of-the-art facilities dedicated to anti-TB products. As one of the largest manufacturers of Rifampicin, Pyrazinamide, and Ethambutol Active Pharmaceutical Ingredients, we have expanded our production capabilities in Aurangabad, increasing our output by 40% from our specialized antiTB formulation blocks. Our generics offer significant cost savings worldwide. In the U.S., Lupin ranks #3 by prescriptions, holding a 4.7% share of total prescriptions, contributing to USD 373 Bn in savings. Similarly, in South Africa, Lupin has helped reduce healthcare expenditures by 35%, and in the U.K., our products have generated 3050% savings for the government.

Creating Affordable Drugs in Low and Middle Income Countries

Bedaquiline, one of the three new drugs developed against TB in over half a century, is crucial for treating drug-resistant TB infections. Lupin has made this vital medication more accessible in LMICs by reducing its six-month treatment course price by 33%.

We are also launching 2-3 programs in India and building capacities in healthcare systems where we operate. Our commitment to not patenting or enforcing patents on intellectual property related to products for diseases covered by ATMI 2021 in least developed and low income countries ensures affordable and accessible medications for those in need.

Through Lupin Access Business, we have successfully registered our products in low and middle income countries, surpassing 115 registrations to date. In FY24, we secured 80+ registrations across various nations, marking significant milestones in expanding the global reach of Lupin’s antiretroviral and tuberculosis treatments, fostering greater accessibility to life-saving medications worldwide.

Pan-India

Patients Reached

Geographical Presence

11521+

130 LUPIN LIMITED | Integrated Report 2023-2024

Access to medication for COPD patients in the U.S.

Lupin Limited has partnered with Mark Cuban Cost Plus Drug Company and the COPD Foundation to improve access to affordable medications for COPD patients in the U.S. This initiative addresses the urgent need for cost-effective respiratory treatments for the 15 million adults affected by COPD in the U.S., enhancing patient access and supporting Lupin’s commitment to health care innovation and affordability.

Supporting Healthcare professionals

At the core of our mission is the commitment to advancing healthcare and fulfilling patient needs. This necessitates a collaborative relationship with health care organizations and health care professionals to leverage scientific expertise effectively. We offer compensation to HCPs for their invaluable time and expertise and provide financial assistance to HCOs for patient care, NHS initiatives, and R&D endeavors.

We strictly adhere to the guidelines set forth by the Association of the British Pharmaceutical Industry, maintaining transparency by disclosing all payments and benefits. Our flagship programs are meticulously designed to enhance understanding and knowledge with regard to the optimal use of our products. Through comprehensive educational initiatives for both healthcare providers and patients, we ensure that they are well informed about the benefits and appropriate usage of our treatments.

==> picture [250 x 205] intentionally omitted <==

Flagship Initiatives Targeted Towards Improving Medical Professional Awareness

EHFA Certification Courses on Heart Failure

In collaboration with the European Society of Cardiology, Lupin has launched a program for cardiologists, focusing on the latest advancements in managing heart failure. This aims to enhance awareness and knowledge about cutting-edge approaches in cardiac care among medical professionals.

Pan-India

1,863 Medical Professionals

Geographical

International Symposium on Diabetes

Lupin collaborates with Joslin Diabetes to conduct a flagship program for Indian endocrinologists and diabetologists, promoting advancements in diabetes management and providing updates on the latest advances in the field.

Pan-India Geographical Presence

2,200 Medical Professionals

Experience the Expertise

Lupin raises awareness about dry and refractory cough among chest and respiratory physicians by disseminating scientific material and enabling discussions. We provide valuable insights on diagnosis and treatment advancements and foster a collaborative environment for sharing expertise and addressing challenges.

Pan-India

1,175 Medical Professionals

Geographical

Corporate Overview Statutory Reports Financial Statements 131

Customers

At Lupin, our focus is on building strong relationships with our diverse customer base, which includes healthcare providers, government agencies, pharmacies, and hospitals. Our commitment is to deliver exceptional

service and ensure customer satisfaction in every interaction. We believe that outstanding customer service is key to consistently exceeding expectations.

Customer Engagement Mechanisms

==> picture [87 x 174] intentionally omitted <==

Our proactive involvement in notable industry events allows us to directly engage with our customers, providing a platform for sharing insights, discussing industry trends, and fostering collaborative opportunities.

Our senior leadership’s accessibility underscores our customer-centric commitment. Executives, including

In the Philippines, our wholly owned subsidiary, Multicare Pharma, uses Pocketwise, our Sales Force Effectiveness Customer Relationship Management system, to manage interactions with doctors, key accounts, and trade accounts. It records daily call activities and supports initiatives such as medical consultancy. By integrating marketing programs, sales-initiated activities, and

the CEO and other senior leaders, actively engage with customers to align strategic objectives. Regular updates on sales activities, product launches, and opportunities for collaborative growth during business reviews demonstrate our dedication to transparency and mutual success.

corporate activities, Pocketwise enhances operational efficiencies. It enables personalized interactions, seamless data tracking, and informed decision-making. The system’s nudge engine guides sales representatives in achieving key performance indicators, driving demand generation, and fostering positive business outcomes.

132 LUPIN LIMITED | Integrated Report 2023-2024

Responsible Supply Chain Management

We prioritize delivering best-in-class service levels through trustworthy and long-term partnerships within our global supplier network. This dedication allows us to consistently provide high quality healthcare solutions to our customers.

Our extensive global network of suppliers and business partners, including manufacturers, service providers, wholesalers, and distributors, ensures efficient delivery of our medicines to patients. We proactively explore opportunities to derisk our supply chain by evaluating alternate suppliers for critical or non substitutable raw material. As part of our Supplier Code of Conduct, we expect suppliers to adhere to Lupin’s ESG standards. We enforce stringent contractual agreements that mandate compliance with our standards for quality, ethics, environmental sustainability, and human rights across all third-party engagements. We promote a culture

of continuous improvement and collaboration with our partners, emphasizing the development of quality products to enhance consumer safety. We also ensure the quality of raw materials through periodic supplier audits.

Decarbonization of Value Chain

At Lupin, we recognize the importance of long-term commercial partnerships with our suppliers. These relationships are sustained through a robust commitment to social, environmental, and safety standards, ensuring our business value remains uncompromised. Our Supplier ESG Program plays a pivotal role in this commitment. Through our Supplier ESG Program, we meticulously track the environmental, social, and governance impact within our supply chain. This monitoring is particularly focused on critical direct material suppliers, ensuring they meet our stringent ESG criteria. To align our suppliers

==> picture [558 x 444] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 133

with Lupin’s organizational goals, we have conducted multiple webinars, educating them on the importance of ESG compliance. These educational efforts are crucial for fostering a shared understanding of our ESG expectations and enhancing supplier performance. In FY24, we undertook a comprehensive ESG evaluation of 309 suppliers who are either strategic or critical to our operations. The assessments enabled us to identify those suppliers needing intervention to meet Lupin’s ESG requirements. For those who have certain development areas, we have designed and implemented Corrective and Preventive Action plans. These tailored plans address specific deficiencies, requiring suppliers to submit detailed improvement strategies. We track these CAPA plans periodically to ensure that improvements are being made and that sustainability standards are consistently met.

==> picture [250 x 161] intentionally omitted <==

----- Start of picture text -----

Suppliers
309 Assessed
Awareness
Sessions
7+
Conducted
----- End of picture text -----

==> picture [558 x 444] intentionally omitted <==

134 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [75 x 32] intentionally omitted <==

==> picture [235 x 38] intentionally omitted <==

Navigating regulatory pathways, operational complexities, and volatile market conditions call for a robust risk management framework that straddles the entire gamut of business operations. This comprehensive framework necessitates a deep understanding of the factors that cause uncertainty across the value chain and support systems.

across all functions and ably supported by our team members. Various metrics, data analytics and technology platforms form the backbone for the identification, quantification, and control of risks in a comprehensive manner. These factors enable sustained value creation, upholding the spirit of entrepreneurship, which forms an integral part of our ethos.

At Lupin, our Executive Management team anchors the tone for risk appreciation and management, resonating

Risk Governance

Three Lines of Accountability

==> picture [208 x 104] intentionally omitted <==

----- Start of picture text -----

Lupin’s Risk
Management Committee
Accountability to stakeholders for
organizational oversight
Governing body roles:
integrity, leadership, transparency
----- End of picture text -----

==> picture [221 x 19] intentionally omitted <==

----- Start of picture text -----

Accountability, Delegation, direction,
Key:
reporting resources, oversight
----- End of picture text -----

==> picture [103 x 17] intentionally omitted <==

----- Start of picture text -----

Alignment, coordination,
collaboration
----- End of picture text -----

Lupin employs a ‘three lines of defense’ system to govern and manage risks.

The Risk Management Committee, constituted by the Board, holds the ultimate responsibility for our approach to risk management and internal controls. With their extensive experience and expertise, the committee translates strategic directives into tactical guidelines for the risk management function and oversees its effective implementation. The RMC establishes our risk appetite, taking a holistic view of risks across the entire organization and considering their global impact and interdependencies. The committee convenes bi-annually to provide strategic direction and oversight on risk management activities.

Reporting to the Board Committee is the Risk Management Cross Functional Team, which comprises of

individual risk owners. This team meets as frequently as needed to review risk treatment plans, monitor changes in risk exposures, and adjust the risk appetite as required. The risk owners share their reports on risks and mitigation strategies with this team.

At the operational level, our functional and location teams support the risk owners and are responsible for day-today risk ownership. They ensure clear assignment of risk management responsibilities and implementation of risk treatment plans. The functional and location teams meet regularly to assess risks and review the risk treatment plans.

We maintain an independent internal audit unit tasked with advising and auditing yearly to ensure that policies are followed and processes align with the company’s risk strategy and policies. This unit provides objective

Corporate Overview Statutory Reports Financial Statements 135

assurance, safeguarding against conflicts of interest arising from other business priorities and ensuring effective risk management practices.

Biennially, the internal audit team may invite external experts for their comments on the audit process. This may

be done to benchmark our practices with global best practices. Further, to strengthen our ERM capabilities, we are set to pursue ISO 31000 Risk Management certification, thus aligning our risk governance systems with global standards.

Risk Management Framework

Our Risk Management Framework guides our approach across all our subsidiaries and partners, ensuring clarity and effectiveness, thereby safeguarding Lupin’s objectives and operations.

==> picture [515 x 252] intentionally omitted <==

----- Start of picture text -----

Business Strategy
Risk Threshold &
Internal Audit
Risk Appetite
Risk
Stress Testing & Culture & Risk Identification
Scenario Analysis Risk Review
Taxonomy
Risk Prioritization
Risk Communication
(Impact Likelihood)
Risk Governance & Controls
----- End of picture text -----

Key elements include

• Alignment of strategy and enterprise risk management: The company’s risk management strategy is derived from its overall business strategy. The Board of Directors plays a pivotal role in setting the risk threshold and risk appetite aligned with business expectations. The risk threshold on financial impact and likelihood frames the cornerstone for setting the risk categorization.

• We conduct

• Risk Identification and Prioritization: an extensive assessment of the business landscape, scanning the risk horizon throughout the year to identify external trends that may present opportunities or emerging risks. Additionally, risk owners monitor their business activities and internal environment to identify potential risks.

To feed into the internal risk assessment, an external double materiality exercise is undertaken once every two years, where material risks are assessed for their financial materiality and impact materiality. During this process, material Key Performance Indicators (KPIs) are identified and compared against the

company’s risk taxonomy, ensuring all relevant risks are captured and addressed.

Insights from risk owners across the organization contribute to the risk prioritization process. Risk exposure is assessed once a year by considering the likelihood of occurrence and the overall impact of the identified risks. We utilize our risk appetite framework to define the likelihood and impact of the risk. By combining likelihood and impact, we determine the severity of risks, allowing us to prioritize the risks. Through this evaluation, risks are categorized as strategic, operational, emerging, and systemic.

• Scenario Testing and Sensitivity Analysis: We are evolving sensitivity analysis and scenario planning exercises to evaluate our readiness to respond to our strategic and operational risks. This planning will aid us in anticipating contingencies and developing effective risk mitigation strategies.

• Oversight and Governance: A Coordinated effort across all three lines of defence enables us to effectively identify, assess, and manage risks

136 LUPIN LIMITED | Integrated Report 2023-2024

while pursuing our business objectives. The Risk Management Council, with its role in overseeing the implementation of the risk management framework and management of material risks, is the key component in strengthening Lupin’s risk governance and oversight mechanisms.

• Risk Mitigation: The respective risk owners, with the support of the site and functional teams, ensure the development and implementation of consistent risk mitigation plans. At the start of each fiscal year, the Internal Audit team conducts an internal risk review. Additionally, an independent third-party Internal Audit of the risk management process is conducted once every two years. The findings from these reviews are used to adjust and refine the company’s risk treatment strategies as needed.

==> picture [89 x 36] intentionally omitted <==

----- Start of picture text -----

Start of
Risk Review
Process
----- End of picture text -----

==> picture [214 x 282] intentionally omitted <==

----- Start of picture text -----

Annual Risk Management
Risk Review Committee
Risk Appetite
& Risk Threshold
Quaterly Risk Management
Risk Meetings Council
Biennial
Risk Register Double Materiality
Survey
Risk Responses
Bi-Annual
Risk Communication Board Update
on Risk Register
----- End of picture text -----

==> picture [89 x 36] intentionally omitted <==

----- Start of picture text -----

End of Risk
Review Process
----- End of picture text -----

• Risk Communication: Risk owners monitor risk treatment plans on a quarterly basis, and the progress and status of risk treatment are communicated to the Board committee on a bi-annual basis. This regular communication ensures that key stakeholders remain informed about the company’s risk exposures and the effectiveness of risk mitigation strategies.

• Building a strong risk culture: We are deeply committed to integrating risk processes, procedures and employee awareness initiatives throughout the organizations to embed a strong risk culture. We foster a culture of personal responsibility to understand and manage risks. This robust culture, built on our commitment, helps us fulfill our purpose and meet stakeholder expectations.

==> picture [250 x 365] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 137

• Need base education and training specific to risk management for the Board of Directors and Risk Management Committee (including Non-Executive Directors)

• Deepens understanding of the company’s risk profile

• Empowers decision making to mitigate potential risks

• Multiple trainings are conducted annually to raise awareness about different risks

• Skill upgradation training sessions are conducted based on training needs identified by the risk response teams

• Interactive sessions for corporate offices and manufacturing sites are held with our risk experts

• Our leadership encourages employees to identify and report potential risk expressions such as near miss incidents, market dynamics, statutory and regulatory changes

• Employees can report risks to their leadership or via Ombudsperson

• Office of Ombudsperson ensures responsive and professional handling of reports

• We have an extensive reward system for employees and contractors, such as EHSAAS Awards and Spirit of Lupin Awards

• Manufacturing facilities conduct risk management for all activities following Standard Operating Procedures (SOPs) referencing Engineering Controls and Personal Protective Equipment (PPE) usage

• SOPs are prepared based on risks using Hazard Identification and Risk Assessment (HIRA) methodology and aspect impact to control adverse environmental effects

• Rigorous regulatory audits by entities such as the U.S. FDA and UK MHRA necessitate preparedness

• Unique training methods such as the Audit Readiness film simulate real-life audit situations, ensuring employees interact positively and confidently with auditors

Our Risk Categorization

The risks in our portfolio are evaluated based on their likelihood and potential impact and categorized into one of the four risk categories.

Strategic Risks: These are the most critical factors affecting our ability to implement our strategy or accomplish our business objectives. As they stem from the organization’s overarching strategy, business model and strategic decisions, their impact can be far-reaching and potentially undermine the company’s core mission. We conduct regular risk reviews and scenario planning to manage strategic risks and establish robust mitigation measures to treat the risk. This enables us to reduce the likelihood of the risk materializing.

Operational Risks: These risks pertain to potential losses or disruptions arising from identified inadequacy in internal processes, systems, human errors, or external events. They arise from our day-to-day operations, processes, and systems that enable the organization to function effectively. Our operational risks are managed through robust internal control processes, employee training, business continuity planning, compliance mechanisms, and incident response protocols.

Emerging Risks: These risks are potential threats that are newly formed or rapidly evolving, requiring oversight and monitoring as they may develop into strategic or operational risks in the future. They may not be quantifiable, may contain a high degree of uncertainty, and their full impact on the organization may not be

138 LUPIN LIMITED | Integrated Report 2023-2024

immediately apparent. These risks are often driven by nascent trends, disruptive technologies, regulatory shifts, or societal changes. Depending on the priority of the risk, respective risk owners are identified for these risks, and appropriate mitigation measures are implemented.

Systemic Risks: These are evolving trends in the industry, over a longer term, that hold the potential to develop into

new risks. They are on the radar of the company but do not warrant an immediate risk response. However, these are assessed to see if the future consequence of the risk would be within our risk appetite and tolerances. Both emerging and systemic risks are communicated regularly and escalated appropriately to the Risk Management Committee so that they can guide decision-making.

Our 2024 Risk Register

==> picture [522 x 26] intentionally omitted <==

----- Start of picture text -----

Taxonomy Risk Likelihood Impact Trend Category
----- End of picture text -----

Business Business Business Business Business Business Business Business Business Business Business Business Business ESG ESG ESG ESG ESG ESG ESG Financial Risks	Litigation Risks Failure to Maintain Timely Supply of Compliant Medicines Pricing Pressure and Competitive Risks Compliance Customer Health and Safety Business Ethics (ABAC) Portfolio Risks for International Non-Proprietary Names Markets Data Privacy and Protection Patent Expiration Risk in Branded Generics Market Competitive Advantage Erosion in Novel Drug Discovery Supply Chain Risks and Import Substitution Weaponized AI for Cyberattacks Misinformation Risks, Deep Fakes and Trust Defcit Protection of Human Rights Ethical Marketing and Product Labeling Water Management Pollution Waste Minimization Anti Microbial Resistance (Pharmaceuticals in the Environment) Occupational Health and Safety Financial Risks				Strategic Strategic Strategic Strategic Strategic Operational Operational Operational Strategic Emerging Emerging Systemic Systemic Operational Operational Operational Operational Operational Operational Operational Operational

Increasing Decreasing

4 3 2 1

Constant

Corporate Overview Statutory Reports Financial Statements 139

Risk Prioritization Matrix

Prioritization is an outcome of likelihood and magnitude assessment. To illustrate this, we have created a risk prioritization matrix, a heat map that highlights their significance.

==> picture [504 x 566] intentionally omitted <==

----- Start of picture text -----

Litigation
Data Privacy and Protection Business Ethics (ABAC) Compliance Risks
Protection of Customer Health
Financial Risks
Human Rights and Safety
Ethical Marketing and Product Labeling Portfolio Risks Pricing Pressure Failure to
for International and Competitive Maintain
Non- Proprietary Risks Timely
NamesMarkets Supply of
Compliant
Medicines
Occupational Waste
Health and Minimization
Safety
Anti Microbial Patent Expiration
Resistence Water Management Supply Chain Risk in Branded
(Pharmaceuticals in Risks and Import Generics Market
Substitution
the Environment) Competitive
Advantage
Erosion in Novel Pollution
Drug Discovery
Weaponized AI
for Cyberattacks
Misinformation Risks, Deep
Fakes and Trust Deficit
----- End of picture text -----

Likelihood of Risk

140 LUPIN LIMITED | Integrated Report 2023-2024

Risk Responses for our Strategic and Operational Risks

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Failure to Maintain Timely Supply of Compliant Medicines
----- End of picture text -----

Risk Description Supply chain risks are two-fold: securing supplies of APIs and key starting materials for production and maintaining a consistent supply of final products to global customers. Delays at manufacturing sites or in logistics can disrupt the procurement of ingredients and components, as well as the distribution of finished products, leading to potential product shortages, lost sales, and reputational damage. Impact Materiality Heat Map Score Financial Materiality - 16 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact) Business Strategic Risk Treatment Aversion/ Reduction /Acceptance/Taking Risk Treatment Plan We work with alternate API suppliers, keep reserve stocks, and use supply chain modeling to foresee disruptions to guarantee the continuous supply of API for high-value products. Building a robust global supply chain is made possible by careful investments in business intelligence solutions. We assess and onboard alternate vendors for essential APIs and intermediates to ensure a steady supply. We are proactively engaging with our customers, particularly in the U.S., so that order books can be maintained in the long term. Litigation Risk Risk Description Given the nature of our business, the company is exposed to intellectual property claims, product safety-related litigation risks, employment disputes, and legal challenges concerning income tax, excise, customs, sales/VAT tax, and other regulatory matters pertaining to our business operations. Such risks have the potential to significantly impact our financial standing, damage our brand reputation, and erode the trust of our stakeholders. Impact Materiality Heat Map Score Financial Materiality - 16 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact) Business risk Strategic Risk Treatment Aversion / Reduction /Acceptance/Taking Risk Treatment Plan To reduce legal risks, we focus on intellectual property management, build strong quality standards, and conduct thorough screenings. These include patent searches, tracking expiration dates, and evaluating validity and enforceability. We maintain high-quality standards through defined policies, procedures, thorough testing, and training. We screen all contracts extensively, utilizing robust standard operating processes. All contracts are carefully drafted to protect the interests of Lupin. These efforts reduce litigation risks, prevent product liability claims, recalls, and regulatory actions, and protect our reputation and stakeholder confidence.

High Medium Low

Increasing

Decreasing

Constant

Very Low

Corporate Overview Statutory Reports Financial Statements 141

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Compliance Risk
----- End of picture text -----

Risk Description

Compliance risk can lead to delayed product approvals, penalties, and plant shutdowns. Policy regulations such as bans on certain products or combinations may also impact commercial prospects. Rigorous quality requirements across the value chain increase the chances of quality deviations and batch rejections. Non-compliance with CGMP regulations can jeopardize regulatory certifications from authorities such as the U.S. FDA, UK MHRA, Japan’s PMDA, and WHO, affecting Lupin’s ability to execute its pipeline and maintain its reputation.

Impact Materiality - 12

Financial Materiality

Heat Map Score

• 12 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact) Business Strategic

Risk Treatment Aversion/ Reduction /Acceptance/Taking Risk Treatment Plan Lupin’s Pharmacovigilance function ensures product safety by implementing effective monitoring systems and adhering to globally accepted cGMP and regulatory requirements. The Quality team conducts audits and follows a Global Quality Action Plan to ensure compliance and prepare for audits. We prioritize product life cycle management and timely recalls to maintain high-quality standards and resolve any adverse events.

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Pricing Pressure and Competitive Risk
----- End of picture text -----

Risk Description

As a global pharmaceutical manufacturer, Lupin encounters substantial pricing pressures and competitive risks. The U.S. generics market is particularly challenging, with intense competition and consistently declining prices, especially in high-competition dosage forms. In the U.S. and EMEA regions, selling specialty products adds to the pricing pressure due to government initiatives to lower prescription drug costs. The consolidation of drug wholesalers and retailers and the influence of large buying groups and managed care organizations amplify these pressures by enhancing their purchasing leverage. This environment threatens Lupin’s financial margins and competitive edge.

Impact Materiality

Financial Materiality

Impact Materiality Heat Map Score Financial Materiality - 12 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact)

Business

Strategic

Risk Treatment

Aversion/ Reduction /Acceptance/Taking

Risk Treatment Plan

Our emphasis on producing complex generics for major markets such as the U.S. has strengthened our market leadership to offer cost-effective therapies for patients. Moreover, by strategically determining prices for innovative drugs, we guarantee that our research and development investments are appropriately compensated, ultimately leading to better pricing. We have a strategic focus on operational efficiencies and cost optimization for spend reduction. Finally, we established long term with buying groups as well as active pharmaceutical ingredient (API) and essential raw material suppliers to mitigate pricing risks.

High Medium Low

Increasing

Decreasing Constant

Very Low

142 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Customer Health and Safety
----- End of picture text -----

Risk Description

At Lupin, ensuring costumer health and safety is a critical priority. The company’s rigorous quality standards and compliance with cGMP regulations across its entire supply chain are essential to mitigate risks related to product safety. Any deviations in manufacturing processes or product specifications can lead to batch rejections and potential safety issues, posing significant risks to patients. Regulatory inspections by authorities such as the U.S. FDA, UK MHRA, Japan’s PMDA, and WHO play a crucial role in maintaining these standards. Adverse findings can not only affect Lupin’s ability to bring products to market but also damage its reputation.

Impact Materiality Heat Map Score Financial Materiality - 12 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial impact) Business Strategic Risk Treatment Aversion/ Reduction /Acceptance/Taking Risk Treatment Plan Lupin places top priority on ensuring the safety and quality of its products, achieved through the dedicated efforts of its Pharmacovigilance function and strict quality management processes. The company’s strong systems and adherence to cGMP and regulatory requirements guarantee thorough monitoring and management of product safety. Ongoing compliance at sites is assured through the implementation of a Global Quality Action Plan and regular audits. The diligent Pharmacovigilance team actively monitors adverse events associated with Lupin medications and takes necessary actions. Furthermore, prompt recalls are carried out for products that are discovered to have defects or fail to meet specifications, whether identified by regulatory authorities or through internal assessments.

==> picture [522 x 30] intentionally omitted <==

----- Start of picture text -----

Patent Expiration Risk in Branded Generics Market
----- End of picture text -----

Risk Description Potential loss of market share and revenue for the company because of the patent expiry opens up the market to competition from other generic manufacturers. The risk lies in maintaining our brand value and market share in such an event.

Impact Materiality Heat Map Score Financial Materiality - 9 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact) Business Strategic Risk Treatment Aversion/ Reduction /Acceptance/Taking Risk Treatment Plan In FY24, Lupin implemented Integrated Business Planning to identify its product portfolio in advance and mitigate risks effectively. The company manages its product portfolio efficiently and evaluates it effectively. With a strategic focus on inhalation and injectables, Lupin is making early investments to identify and plan capacities accordingly.

High Medium Low

Increasing Decreasing

Constant

Very Low

Corporate Overview Statutory Reports Financial Statements 143

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Financial Risk
----- End of picture text -----

Risk Description

Impact Materiality

Financial risk for Lupin emanates from both core operations in the ordinary course of business and incidental risks arising out of fluctuations in various interest rates and taxes. Being a business with a market reach of over 100 countries, financial risk may arise out of changing demand and prices, the nature of contracts and the competitive environment. A significant portion of our revenues are generated from exports with a definite forex risk exposure. Additionally, tax risks and compliance issues are associated with specific transactions, further contributing to Lupin’s overall financial risk profile.

Financial Materiality

Heat Map Score

8

Magnitude Likelihood

Risk Taxonomy

Trend (for 1-3 years)

Risk Type (based on Financial Impact)

Financial

Operational

Risk Treatment

Risk Treatment Plan

Aversion/ Reduction /Acceptance/Taking Lupin constantly evaluates and takes remediation measures to address financial risks related to the realization of business plans. Through real-time engagement of all key stakeholders, we vigilantly review the performance of our portfolio of products and services globally and adopt necessary steps to ensure planned sales, costs and margins are protected, remediated, and permanent changes are addressed and compensated where possible.

• We further address financial risks through a diversified liability profile and through strategic fundraising from domestic and international markets.

• The company optimizes debt maturity and accesses liquidity pools to reduce financing costs.

• • Lupin ensures accurate recording, accounting, and payment of tax liabilities, supported by strong internal tax teams, technical intervention, and compliance checks.

• For forex risk, a comprehensive strategy is adopted involving forecasting, hedging tools, and proactive monitoring to minimize volatility.

==> picture [522 x 30] intentionally omitted <==

----- Start of picture text -----

Portfolio Risks for International Non-Proprietary Names Markets
----- End of picture text -----

Risk Description

Inherent challenges are associated with managing a portfolio of drug products across multiple international markets, targeting the generic markets. These markets are often highly competitive, and the success of a product depends on factors such as timely identification, selection, and development of viable molecules, as well as being among the first companies to launch or file for regulatory approvals.

Impact Materiality Heat Map Score

Financial Materiality

8 Magnitude Likelihood Trend (for 1-3 years) Business Operational

Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact)

Risk Treatment

Aversion/ Reduction /Acceptance/Taking

Risk Treatment Plan

In FY23, Lupin implemented integrated business planning into practice. This helps to define the product portfolio ahead of time, reducing the risk. Lupin keeps its product portfolio optimal, which is achieved through efficient portfolio management and assessment. Since inhalation and injectables represent a strategic area for us, we have been making early investments to determine and schedule capacities appropriately.

High Medium Low

Increasing Decreasing

Constant

Very Low

144 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Data Privacy and Protection
----- End of picture text -----

Risk Description

• Information protection risks have become more critical due to the shift to remote work driven by the COVID-19 pandemic. The increased reliance on digital communication and data sharing has heightened the company’s exposure to cyber threats. An attack on Lupin’s IT systems or failure to comply with data privacy laws can lead to the loss of vital business intelligence, financial setbacks, and reputational damage.

• Emerging challenges for data protection and cybersecurity include:

• Complexity of the Digital Ecosystem: The interconnected nature of modern cyberspace, with continuously evolving data elements and integration across platforms, creates a complex environment that is difficult to manage and secure.

• Sophistication and Evolution of Cyber Threats: Cyber attackers are getting more sophisticated, leveraging advanced techniques to exploit the larger digital footprints left by remote workforces.

• Mobile and IoT Vulnerabilities: The proliferation of mobile devices and IoT technologies introduces new vulnerabilities. Communications and transactions on these platforms are closely tied to individual users, increasing the risk of personal data breaches.

• Regulatory Compliance: Adhering to global data privacy laws, such as GDPR and CCPA, is crucial. Non-compliance can result in severe penalties and loss of customer trust.

• Social Engineering Attacks: Cyber threats are increasingly targeting human vulnerabilities through social engineering tactics, making it essential to educate and train employees on recognizing and responding to such threats.

Impact Materiality

• Risk Taxonomy

Business

Financial Materiality

Heat Map Score Financial Materiality 4 Magnitude Likelihood Trend (for 1-3 years) Risk Type (based on Financial Impact) Operational

Risk Treatment

Aversion/ Reduction /Acceptance/Taking

Risk Treatment Plan

All our locations have achieved the ISO 27001:2013 certification, demonstrating a robust information security management system. To stay ahead of evolving regulations, we are planning to upgrade to the latest ISO 27001:2022 standard, ensuring continued compliance with data privacy requirements.

We implemented Zero Trust Architecture across the organization. This grants secure access to applications only to authorized users, regardless of their location, safeguarding our data even in remote work environments. Our Security Operations Center diligently monitors security threats and vulnerabilities, enabling us to proactively address them and minimize risks.

High Medium Low

Increasing

Decreasing

Constant

Very Low

Corporate Overview Statutory Reports Financial Statements 145

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Business Ethics
----- End of picture text -----

Risk Description

The pharmaceutical industry faces unique ethical dilemmas that sets it apart from other sectors. The evolving global regulatory environment has led to increased scrutiny and heightened stakeholder expectations. Ethical issues in this industry include product pricing and affordability, counterfeit drugs, transparent disclosures, marketing and advertising practices, and the ethical conduct of employees regarding corruption and bribery. Ensuring fair dealings with all stakeholders is also crucial. Any damage to Lupin’s reputation can severely compromise its ability to execute core business operations. Therefore, maintaining high ethical standards is essential for upholding trust and integrity in the global pharmaceutical market.

Impact Materiality

Heat Map Score

Financial Materiality

Risk Taxonomy

Business

8 Magnitude Likelihood Trend (for 1-3 years) Risk Type (based on Financial Impact) Operational

Risk Treatment

Aversion/ Reduction /Acceptance/Taking

Risk Treatment Plan

Lupin has implemented policies to safeguard against ethical risks and encourages an integrityfocused culture. These consist of a global Code of Conduct and a strong system to report concerns in confidence to whistleblowers. The required yearly e-training promotes responsible behavior and reduces ethical risks by further ingraining the Code of Conduct throughout the company. In addition, employees receive training on compliance regulations and ethical marketing practices, and regulatory changes are tracked to safeguard compliance. The organization has established policies pertaining to environmental sustainability, biodiversity, and human rights. It also highlights the ethical responsibilities that go beyond conducting business as usual.

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Protection of Human Rights
----- End of picture text -----

Risk Description

Without proper safeguards for employee human rights protections, the company will lose its reputation and credibility in the market and see a drastic drop in revenues.

Impact Materiality

Heat Map Score

Financial Materiality

2.33 4 Magnitude Likelihood

Risk Taxonomy

Trend (for 1-3 years) Risk Type (based on Financial Impact)

ESG Operational

Risk Treatment

Aversion/ Reduction /Acceptance/Taking

Risk Treatment Plan

We have established site-level Human Rights Core Committees led by the respective site heads. All our staff and third parties are encouraged to uphold Lupin’s values and follow our human rights standards as outlined in our Human Rights Policy and Third-party Code of Conduct. Comprehensive Human Rights Audits are conducted across all sites in India. Periodic human rights awareness sessions are organized to build an understanding and respect for human rights within our workforce.

High Medium Low

Increasing Decreasing

Constant

Very Low

146 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Water Management
----- End of picture text -----

Risk Description While water shortages can disrupt our operations and affect supply chains, poor water quality affects the quality of medicines we manufacture. Any deterioration of local water quality caused by our operations would subject the company to public and regulatory scrutiny. Continued water withdrawal in high water-risk regions increases the company’s operational costs, affects social trust, and can impact manufacturing capabilities, ultimately resulting in revenue loss.

Impact Materiality Heat Map Score Financial Materiality 2.67 6 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact) ESG Operational

Risk Treatment

Aversion/ Reduction /Acceptance/Taking

Risk Treatment Plan

• Dedicated water stewardship efforts and assessment of water footprint.

• Engagement in watershed development initiatives through Lupin Human Welfare and Research Foundation.

• We are committed to responsible wastewater management through the establishment of wastewater recycling and necessary AMR Controls. 6 of our manufacturing plants are Zero Liquid discharge plants.

• Particularly in areas of high-water stress, our focus extends to maximizing the use of recycled water treated at our effluent treatment plants and reverse osmosis facilities.

• • We launched Water Saving League-2023 which was a gamified initiative under ‘Mission Jal Shakti’ to optimize water usage at our Pithampur facility.

• We are 400% water-positive (replenishment is four times our consumption).

High Medium Low Very Low

Increasing

Decreasing

Constant

Corporate Overview Statutory Reports Financial Statements 147

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Pollution
----- End of picture text -----

Risk Description Pharmaceutical production processes can lead to significant environmental pollution. Air emissions such as volatile organic compounds (VOCs), sulphur oxides (SOx), nitrogen oxides (NOx), particulate matter, and GHG emissions are released during solvent handling, chemical reactions, and boiler operations. Water, air, and soil pollution from our activities can negatively impact direct operations, workforce health, local communities, and ecosystems. Proper management of these pollutants is crucial to mitigate supply issues, health risks, and ecosystem damage.

Impact Materiality Heat Map Score Financial Materiality 2 6 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact) ESG Operational

Risk Treatment Aversion/ Reduction /Acceptance/Taking

Risk Treatment Plan Compliance with regulations to protect the health of the workforce and environment. Ensuring sustainable operations and biodiversity preservation. We are commissioning biomass briquette boilers and installing bag filters and electrostatic precipitators at multiple locations for energy optimization and reduction of particulate matters in flue gas.

We have also undertaken various initiatives to reduce GHG emissions from our operations, including procurement of renewable energy and switching to cleaner use of fuels.

We have installed advanced chillers and condensers in our manufacturing plants to improve the effectiveness of condensate recovery and further reduce utility costs.

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Occupational Health and Safety
----- End of picture text -----

Risk Description Providing a safe work environment increases employee satisfaction and ensures that they can achieve their highest potential. Ineffective management of health and safety practices can lead to a high number of safety-related incidents. An unsafe workplace can cause distress and could potentially result in reputational and revenue loss for the organization. Impact Materiality Heat Map Score Financial Materiality 2.33 6 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact) ESG Operational Risk Treatment Aversion/ Reduction /Acceptance/Taking Risk Treatment Plan All our sites are ISO18001 certified and have management systems to avoid unsafe incidents. Regular training is provided to all site teams to mitigate unsafe acts and report on unsafe incidents. Employees are encouraged to report on near misses and potential near misses to avoid any future incidents. Industrial hygiene and personnel safety standards are maintained as per global best practices to keep the workplace safe. Our record states that our incident rate and accident rate are reducing YoY in line with our commitment towards the same.

High Medium Low

Increasing

Decreasing

Constant

Very Low

148 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Waste Minimization
----- End of picture text -----

Risk Description Our waste streams include hazardous waste, non-hazardous waste, e-waste, biomedical waste, and others. This typically consists of spent solvents, shelf-life expired products, packaging waste, plastic among others. Directing more waste to landfills and incinerators will increase the company’s contribution to air pollution and GHG emissions, along with underground water eutrophication. Improper waste management can lead to material wastage, fines and compliance penalties.

Impact Materiality Heat Map Score Financial Materiality 1.67 6 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact) ESG Operational Risk Treatment Aversion/ Reduction /Acceptance/Taking Risk Treatment Plan • The 3R principle of ‘Reduce, Reuse and Recycle’ is the mantra of our waste management

• The 3R principle of ‘Reduce, Reuse and Recycle’ is the mantra of our waste management practices

• Our waste streams, which include hazardous waste, non-hazardous waste, e-waste, biomedical waste, and others, are inventoried periodically and are sent to third parties for recycling/disposal in compliance with applicable government regulations

• We consistently repurpose majority of our disposed waste as an alternative raw material or fuel for co-processing, aligning with our commitment to sustainable waste management practices.

• The spent solvents produced in the process of manufacturing Active Pharmaceutical Ingredients (APIs) are either reused on-site or sent to certified disposal facilities or recyclers.

• • Post-consumer plastic recycling is done to fulfill 100% of our EPR target.

==> picture [522 x 30] intentionally omitted <==

----- Start of picture text -----

Ethical Marketing and Product Labeling
----- End of picture text -----

Risk Description Miscommunicating drug uses or prescriptions, along with any incorrect labeling, can cause serious harm to patients’ health and safety, which presents reputational risks alongside risks related to loss in revenues. Impact Materiality Heat Map Score Financial Materiality 3.33 4 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact) ESG Operational

Risk Treatment Aversion/ Reduction /Acceptance/Taking Risk Treatment Plan Lupin’s Code of Conduct guides our employee behavior in all customer interactions and professional activities. Furthermore, our SOP training with over 30,000 courses enables our field staff to present our products and their therapeutic areas accurately. We, also, train our field in ethical marketing practices and applicable compliance regulations.

All our labels are made to be compliant to applicable regulatory standards. All products of Lupin have the usage/directions mentioned on leaflets/packaging, with information on intended usage and potential hazards.

High Medium Low

Increasing

Decreasing

Constant

Very Low

Corporate Overview Statutory Reports Financial Statements 149

==> picture [522 x 29] intentionally omitted <==

----- Start of picture text -----

Anti-Microbial Resistance (Pharmaceuticals in the Environment)
----- End of picture text -----

Risk Description AMR can lead to higher mortality rates as infections that were once treatable become resistant to antibiotics, making them harder to cure, resulting in prolonged illnesses and increased complications. Resistant bacteria can spread within communities and healthcare settings, leading to outbreaks that are difficult to control. Inaction from Lupin as a pharma company towards AMR stewardship can lead to loss of reputation, leading to loss in customer loyalty and customers. Impact Materiality Heat Map Score Financial Materiality 3.33 3 Magnitude Likelihood Risk Taxonomy Trend (for 1-3 years) Risk Type (based on Financial Impact) ESG Operational Risk Treatment Aversion/ Reduction /Acceptance/Taking Risk Treatment Plan We actively assess the ecological impact of the Active Pharmaceutical Ingredients (APIs) used in the manufacturing processes, discharge into water bodies, potential bioaccumulation in ecosystems, and overall toxicity to organisms. We frequently analyze the Anti-Microbial content in the treated water discharges and ensure that the PNEC values of those AMRs are below the quantification limit. 6 of our manufacturing units are zero liquid discharge plants, wherein the treated effluent is recycled in the utilities, and there is no discharge outside the premises. Additionally, we have undertaken lifecycle assessments of top-10 revenue-generating products across the value chain to understand the cumulative environmental impact based on the cradleto-gate approach. The lifecycle assessments will help us to assess opportunities to reduce the ecological footprint. Furthermore, as part of our training on ethical marketing, we train our field staff and conduct sessions with our HCPs on optimum usage of our products.

High Medium Low Very Low

Increasing Decreasing Constant

Emerging Risks

Competitive Advantage Erosion in Drug Discovery due to AI

The traditional pharmaceutical industry is facing disruption from AI powered drug discovery startups, which are accelerating the drug discovery process, and potentially eroding the advantages of established players. AI brings more efficiency in today’s high costs and slow processes and holds the potential to identify new drugs that go beyond traditional methods. As per a report by Markets & Markets published in November 2023, the integration of AI and machine learning in drug discovery is expected to grow significantly, with a compound annual growth rate (CAGR) of 40.2% from 2023 to 2028. Lupin faces the risk of being outpaced by digitally agile competitors, and our advantage in NDD could be threatened by the emergence of AI-enabled startups that offer newer medications and therapies.

Mitigation action: Lupin is investing in technology enabled solutions such as AI and ML, with a potential to disrupt the market.

Supply Chain Disruptions due to Geopolitical and Transition Risk

Our supply chain is always exposed to interruptions in raw material inputs due to factors such as geopolitical risks, physical climate risks and transition risk against import from a specific region. Moreover, international sanctions and trade policies can also cause issues with raw material availability, while conflict ridden trade routes may potentially affect our logistics time.

Mitigation Action: Import substitution strategies can be effective in mitigating the above mentioned supply chain disruptions but require careful consideration of potential risks in sourcing regions. Lupin has an import substitution

150 LUPIN LIMITED | Integrated Report 2023-2024

strategy as part of its broader strategy to de-risk the company’s supply chain, which could be impacted by geopolitical tensions and potential war zones in sourcing regions, particularly in regions such as the Middle East and Eastern Europe. Our Global Sourcing and Contract Manufacturing team engages with suppliers worldwide. However, the emphasis is on collaborating and developing domestic manufacturers to reduce import dependency and contribute to the local economy. We have a cross functional team comprising experts from the Research and Development, Quality Assurance, GSCM, and Regulatory Affairs departments, who collaborate closely with suppliers working on import substitution.

Systemic risks

Misinformation Risks, Deep Fakes and Trust Deficit

The World Economic Forum’s ‘The Global Risks Report 2023’ ranks ‘Misinformation’ as the 5[th] most severe global risk over the long term.

As the internet evolves, pharmaceutical companies like Lupin are becoming more susceptible to misinformation campaigns that can spread unreliable evidence on any of the products affecting the public’s trust in the brand and the industry at large. With the potential to develop hostility toward the brand, deep fakes and AI-generated content are a novel threat to our credibility and business. It poses higher stakes and more harmful risks due to its capacity

to create believable content at scale and at speed, which makes it challenging for us to counter.

Weaponized AI for Cyberattacks

Pharmaceutical companies have experienced an uptick in cyber attacks over the last few years due to valuable data and intellectual property held by these organizations. According to the Journal of the American Medical Association, the frequency of cyberattacks on U.S. hospitals and health systems more than doubled from 2016 to 2021. Another example closer to home is the recent 2023 ransomware attack on one of India’s largest drug manufacturers, drawing attention to the industry’s vulnerability to data breaches and cyber threats. Cyber criminals are increasingly leveraging AI techniques to enhance the effectiveness of their attacks, making them more difficult to detect and defend against. Generative AI tools can be used to create counterfeit medical records, produce sophisticated phishing emails, create malware, and even manipulate diagnostic imaging results from X-rays and MRIs for ransomware. In diagnostic businesses like Lupin’s, medical imagery like MRI and CT scan results are typically stored on a central system and retrieved when required, making them susceptible to weaponized AI attacks without adequate measures to fend them off. AI systems could also be used to analyze and reverse-engineer our proprietary drug formulations, manufacturing processes, or research data, leading to IP infringement and potential legal battles.

==> picture [522 x 348] intentionally omitted <==

Corporate Overview Statutory Reports Financial Statements 151

==> picture [65 x 29] intentionally omitted <==

==> picture [177 x 30] intentionally omitted <==

==> picture [523 x 24] intentionally omitted <==

----- Start of picture text -----

Fines/Settlements/Complaints
----- End of picture text -----

==> picture [525 x 27] intentionally omitted <==

----- Start of picture text -----

Category Unit FY24 FY23
----- End of picture text -----

Fines related to Anti-competitive practices Settlements related to Anti-competitive practices Confrmed cases of Corruption and Bribery Current involvement in any ongoing corruption and bribery cases Number of incidents of discrimination and harassment Number of incidents of Conficts of Interest Number of incidents of Money Laundering or Insider trading Number of complaints related to Child Labour/Forced Labour/Involuntary Labour Upheld regulatory complaints concerning marketing and selling practices Upheld self-regulatory complaints concerning marketing and selling practices Class I product recalls Class II product recalls Class III product recalls U.S. FDA inspections Form 483’s Total Number of Observations U.S. FDA Warning Letters (or equivalent) Total number of clients, customers and employees affected by the breaches Complaints concerning breaches of customer privacy and losses of customer data Total number of information security breaches	INR Mn INR Mn No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No.	0 0 0 0 4 0 0 0 0 0 1 6 1 9 2 3 1 0 0 0	0 0 0 None 2 0 0 0 0 0 0 7 9 7 55 1 0 0 0

No environmental violation in the past 3 years.

Zero penalties/legal actions from any bodies from the past 3 years.

==> picture [523 x 24] intentionally omitted <==

----- Start of picture text -----

Board Committees in FY24 Number of Meetings Attendance %
----- End of picture text -----

Audit Commitee Risk Management Corporate Social Responsibility Stakeholders’ Relationship Nomination and Remuneration	5 2 1 2 2	100% 100% 100% 100% 100%

152 LUPIN LIMITED | Integrated Report 2023-2024

Intellectual Capital

==> picture [523 x 24] intentionally omitted <==

----- Start of picture text -----

Intellectual Property and Patents
----- End of picture text -----

FY24	NDDD	Formulation	API	Biotech	Total
Total Patents Filed Total Patents Granted	34 89	32 18	2 1	5 2	73 110

As on 31-Mar-2024	NDDD	Formulation	API	Biotech	Total
Total Patents Applications Total Patents Granted	450 209	323 191	50 8	43 32	866 440

==> picture [523 x 24] intentionally omitted <==

----- Start of picture text -----

Intellectual Property and Patents
----- End of picture text -----

==> picture [525 x 29] intentionally omitted <==

----- Start of picture text -----

Type of Filing Cumulative Cumulative
Filing FY24 Approval FY24
(Number of dossiers) Filings Approvals
----- End of picture text -----

NDA		0		1		11				11
ANDA		6		41		431				314
ANDSs [Canada]		6		1		20				13
MAAs - Europe		1		2		51				42
MAAs - AU / NZ		4		4		54				49
MAAs - GIB		6		1		25				16
MAAs - Brazil		0		1		7				6
MAAs - South Africa		6		10		51				39
MAAs - Mexico		0		1		11				1
MAAs - Philippines		4		1		22				15
MAAs - China		0		0		1				0
Total		33		63		684				506
Total Product Portfolio											1,211
Total Research Centers											7
R&D Team Headcount											1,400+

Corporate Overview Statutory Reports Financial Statements 153

Energy Consumption

Energy Consumption	Energy Consumption
Energy from Renewable Sources		India		Global
Indicator	Unit	FY24	FY23	FY24	FY23
Solar-captive Wind-grid Hybrid Steam Generation (Agrowaste)	GJ GJ GJ GJ	17,901 62,413 66,416 487,713	9,141 30,727 0 109,049	17,901 62,413 66,416 487,713	9,141 30,727 0 109,049

==> picture [524 x 37] intentionally omitted <==

----- Start of picture text -----

Energy from Non-Renewable Sources India Global
Indicator Unit FY24 FY23 FY24 FY23
----- End of picture text -----

Diesel Furnace Oil Natural Gas LPG LSHS Steam Purchased Grid Electricity Purchase	GJ GJ GJ GJ GJ GJ GJ	62,373 232,703 334,579 0 123,486 192,367 1,184,496	96,823 398,3312 356,295 0 27,397 358,486 1,267,950	62,971 232,703 342,566 1,729 123,486 192,367 1,252,542	97,091 398,332 356,593 1,921 27,397 358,486 1,343,949

Energy Mix	Energy Mix	India	India	Global	Global
Indicator	Unit	FY24	FY23	FY24	FY23
Renewable Sources Non-Renewable Sources Total	GJ GJ GJ	634,443 2,130,003 2,764,446	146,674 2,505,284 2,651,958	634,443 2,208,364 2,842,807	146,674 2,583,769 2,730,443

Emissions Avoided

==> picture [522 x 18] intentionally omitted <==

----- Start of picture text -----

India
----- End of picture text -----

==> picture [524 x 20] intentionally omitted <==

----- Start of picture text -----

Renewable Energy Source Unit FY24 FY23
----- End of picture text -----

Solar Captive Wind Power Hybrid Total	MTCO2e MTCO2e MTCO2e MTCO2e	3,560 12,413 13,209 29,183	1,803 6,060 7,863

154 LUPIN LIMITED | Integrated Report 2023-2024

Total GHG Emissions (Scope 1 & 2)

==> picture [524 x 37] intentionally omitted <==

----- Start of picture text -----

India Global
Indicator Unit Unit FY24 FY23 FY24 FY23
----- End of picture text -----

Scope 1 emissions (from energy use in own operations) Scope 2 emissions (from purchased energy sources) Scope 1+2 Emission Intensity for Scope 1, 2 YoY Change (Scope 1+2)	MTCO2e MTCO2e MTCO2e MTCO2e/Mn revenue %	61,474 263,905 325,379 1.63 21%	86,910 323,845 410,755 2.47	62,142 277,438 339,581 1.70 21%	87,068 340,945 428,013 2.6

Total GHG Emissions (Scope 3)

==> picture [522 x 18] intentionally omitted <==

----- Start of picture text -----

Global
----- End of picture text -----

==> picture [524 x 20] intentionally omitted <==

----- Start of picture text -----

Scope 3 (MTCO2e) Unit FY24 FY23
----- End of picture text -----

Category 1: Purchase goods and services Category 2: Capital Goods Category 3: Fuel and Energy Category 5: Waste Generated and Disposed Category 4: Downstream Transport Category 6: Business Travel Category 7: Employee Commute Scope 3 emissions Emission Intensity for Scope 3	MTCO2e MTCO2e MTCO2e MTCO2e MTCO2e MTCO2e MTCO2e MTCO2e MTCO2e/Mn revenue	723,544 13,363 79,785 125 75,700 7,349 1,654 901,520 4.51	657,535 17,160 82,924 121 89,601 5,996 1,599 854,936 5.14

==> picture [523 x 18] intentionally omitted <==

----- Start of picture text -----

Global
----- End of picture text -----

==> picture [525 x 21] intentionally omitted <==

----- Start of picture text -----

Source Unit FY24 FY23 Change
----- End of picture text -----

Steam Generated Steam Purchased Total	MTCO2e MTCO2e MTCO2e	11,574 0 11,574	10,713 0 10,713	8% 0 8%

Biogenic Emissions

==> picture [523 x 18] intentionally omitted <==

----- Start of picture text -----

Global
----- End of picture text -----

==> picture [525 x 21] intentionally omitted <==

----- Start of picture text -----

Source Unit FY24 FY23 FY24 FY23
----- End of picture text -----

Steam Generated Steam Purchased Total	MTCO2e MTCO2e MTCO2e	48,920 0 48,920	10,938 0 10,938	48,920 0 48,920	10,938 0 10,938

Corporate Overview Statutory Reports Financial Statements 155

Water Withdrawal, Consumption and Discharge

==> picture [525 x 38] intentionally omitted <==

----- Start of picture text -----

Total water qty Units FY 2023-24 FY 2022-23
India Overses Global India Overses Global
----- End of picture text -----

Ground water Municipal Supply, etc Surface Water Fresh Water Rain Water AHU Condensate Others Recycled Water (CETP) Recycled Water Consumption Recycled Water Disposed to CETP Total Recycled Water Consumption Total Water Consumption Total water Consumption (GRI) Wastewater Generation Waste Water Disposed to CETP Water Discharge to CETP	KL KL KL KL KL KL KL KL KL KL KL KL KL KL KL KL KL	149,551 93,465 1,243,266 135,186 1,621,468 17,583 3,186 20,769 24,410 710,664 24,410 686,254 2,328,491 1,584,942 1,000,713 12,116 36,526	28,012 0 44,757 72,769 0 0 0 0 0 0 0 72,769 61,366 11,403 11,403 11,403	177,563 93,465 1,288,023 135,186 1,694,237 17,583 3,186 20,769 24,410 710,664 24,410 686,254 2,401,260 1,646,307 1,012,116 23,519 47,929	161,832 92,252 1,178,659 135,146 1,567,890 11,490 4,078 15,568 4,217 661,753 4,217 657,536 2,240,995 1,551,013 968,704 12,660 16,877	30,511 0 21,154 51,665 0 0 0 0 0 0 0 51,665 51,665 NA NA 0	192,343 92,252 1,199,813 135,146 1,619,555 11,490 4,078 15,568 4,217 661,753 4,217 657,536 2,292,660 1,602,678 968,704 12,660 16,877

	India	India	Global	Global
Global Water Withdrawal from sources	FY24 (in KL)	FY23 (in KL)	FY24 (in KL)	FY23 (in KL)
Ground Water (Borewell) Third Party Water (Municipal Supply, etc.) Surface Water (River)	149,551 1,336,731 135,294	161,832 1,270,912 135,146	177,563 1,381,488 135,294	192,343 1,294,733 135,146

156 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [523 x 38] intentionally omitted <==

----- Start of picture text -----

Parameters Unit India Mode of Disposal
FY24 FY23
----- End of picture text -----

		India	India	India
		FY24	FY23
Plastic Waste E-Waste Bio-medical Construction and demolition waste Battery Waste Incineration Hazardous waste and co-processing/pre- processing Hazardous waste sent for Co-processing/Pre-processing Hazardous waste sent for Landflling Spent calcium sulphate - (Chemical gypsum) - Cement industry Used oil, spent solvent, spent catalyst Plastic liners, drum, containers Total other Hazardous waste Non-hazardous waste Generated and dispsoal Canteen waste and Mycellia waste Agrowaste Boiler Ash Total Other Non Hazardous Waste Total waste generated	MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT	2,803 37 80 2,753 38 8,199 7,332 12,169 4,471 7,211 918 32,968 4,806 5,395 10,201 43,169	1,956 30 86 Not monitored Not mentioned 6,850 4,163 9,651 4,458 6,490 725 28,167 5,713 1,265 6,978 35,145	Authorized Recycler (EPR) Authorized Recycler Incineration to Common Bio- medical treatment facility Landflled to offsite Buyback/Dealer TSDF/Co-processing to Cement Industry Co-processing to Cement Industry Landflled to TSDF Cement industry Authorized Recycler Authorized Recycler Mycellia- Composting (Offsite) and Canteen waste On site composting/Handdover to Municipal/Piggaries/ Cattle feed Bricks Manufacturere/Landflled (offsite)

Corporate Overview Statutory Reports Financial Statements 157

==> picture [523 x 38] intentionally omitted <==

----- Start of picture text -----

Parameters Unit Global Mode of Disposal
FY24 FY23
----- End of picture text -----

		Global	Global	Global
		FY24	FY23
Plastic Waste E-Waste Bio-medical Construction and demolition waste Battery Waste Incineration Hazardous waste and co-processing/pre- processing Hazardous waste sent for Co- processing/Pre-processing Hazardous waste sent for Landflling Spent calcium sulphate -(Chemical gypsum)- Cement industry Used oil, spent solvent, spent catalyst Plastic liners, drum, containers Total other Hazardous waste Non-hazardous waste Generated and dispsoal Canteen waste and Mycellia waste Agrowaste Boiler Ash Total Other Non Hazardous Waste Total waste generated	MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT	2,888 39 90 2,777 38 8,516 7,334 12,169 4,471 7,212 918 33,286 4,842 5,395 10,237 43,523	1,956 30 86 Not monitored Not monitored 7,009 4,178 9,651 4,452 6,490 725 28,326 5,717 1,265 6,982 35,309	Authorized Recycler (EPR) Authorized Recycler Incineration to Common Bio- medical treatment facility Landflled to offsite Buyback/Dealer TSDF/Co-processing to Cement Industry Co-processing to Cement Industry Landflled to TSDF Cement industry Authorized Recycler Authorized Recycler Mycellia- Composting (Offsite) and Canteen waste On site composting/Handdover to Municipal/Piggaries/Cattle feed Bricks Manufacturere/Landflled (offsite)

158 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [523 x 18] intentionally omitted <==

----- Start of picture text -----

Global
----- End of picture text -----

==> picture [525 x 20] intentionally omitted <==

----- Start of picture text -----

Category Unit FY24 FY23 FY22 FY21
----- End of picture text -----

Recycling/Recovery/Utilisation Waste Landflled Incineration and pre-processing and co-processing in cement plants Total Hazardous waste disposed Waste incinerated without energy recovery	MT MT MT MT MT	12,600 12,169 8,516 33,286 867	11,679 9,651 6,838 28,168 2,687	14,724 12,940 6,954 34,618 3,854	14,862 17,397 8,653 40,912 3,735

Social Performance

Employee Information

Global Workforce

Category	Male 19,030 257 19,287 1,051 242 1,293 20,580 91%	Female 1,759 220 1,979 28 58 86 2,065 9%	Total 20,789 477 21,266 1,079 300 1,379 22,645
Total Employees (Permanent)
Total Employees (Other than Permanent)
Total Employees
Total Workers (Permanent)
Total Workers (Other than Permanent)
Total Workers
Totals
Percentage

Lupin India (Age, Gender, Level)

Category	<30 years		30-50 years		>50 years		Total 19,653 233 4,034 15,386 442 1,059 295 1,354
	Male 7,124 0 160 6,964 9 146 217 363	Female 533 0 57 476 26 2 38 40	Male 10,902 109 3,421 7,372 236 661 24 685	Female 630 17 221 392 171 1 16 17	Male 426 104 155 167 0 240 0 240	Female 38 3 20 15 0 9 0 9
Employee (Permanent)
Senior Management
Middle Management
Junior Management
Employees (Other than Permanent)
Workers (Permanent)
Workers (Other than Permanent)
Total Workers

Corporate Overview Statutory Reports Financial Statements 159

Our Global Workforce (ROW) in 2024

Category	<30 years		30-50 years		>50 years		Total 774 35 20 5
	Male 69 2 2 1	Female 77 13 4 2	Male 228 4 2 0	Female 268 5 11 2	Male 59 6 0 0	Female 73 5 1 0
Employee (Permanent)
Employees (Other than Permanent)
Workers (Permanent)
Workers (Other than Permanent)

Our Global Workforce (North America) in 2024

Category Employee (Permanent)	Male 222	Female 140

Gender representation across Employee Groups in FY24 - India

Gender representation across Employee Groups in FY24 - India
Category	Total Number of Employees 784	% Women 18
Permanent Employees
Employees (Interns, Trainees/Apprentices, Part-time Employees, etc.)	49	24
Workers (Permanent)	0	0
Workers (Other than Permanent)	0	0

Gender representation across Employee Groups in FY24 - ROW

Gender representation across Employee Groups in FY24 - ROW
Category	Total Number of Employees 861	% Women 59
Permanent Employees
Employees (Interns, Trainees/Apprentices, Part-time Employees, etc.)	43	54
Workers (Permanent)	20	22
Workers (Other than Permanent)	5	11

Gender representation across Employee Groups in FY24 - USA (North America)

Category	Total Number of Employees 362	% Women 39
Permanent Employees
Employees (Interns, Trainees/Apprentices, Part-time Employees, etc.)	24	46
Workers (Permanent)	0	0
Workers (Other than Permanent)	0	0

160 LUPIN LIMITED | Integrated Report 2023-2024

FY24 Women workforce across different positions - India

==> picture [525 x 112] intentionally omitted <==

----- Start of picture text -----

Category FY24
Share of women in junior management positions 39%
Share of women in STEM-related positions 3%
Share of women in management positions in revenue generating functions (such as sales or that
9%
contribute directly to the output of products or services)
Share of women in management level positions 8%
Share of women in top management positions 0%
----- End of picture text -----

FY24 Women workforce across different positions - ROW

==> picture [525 x 112] intentionally omitted <==

----- Start of picture text -----

Category FY24
Share of women in junior management positions 14%
Share of women in STEM-related positions 31%
Share of women in management positions in revenue generating functions (such as sales or that
20%
contribute directly to the output of products or services)
Share of women in management level positions 23%
Share of women in top management positions 1%
----- End of picture text -----

FY24 Women workforce across different positions - USA (North America)

==> picture [525 x 112] intentionally omitted <==

----- Start of picture text -----

Category FY24
Share of women in junior management positions 45%
Share of women in STEM-related positions 37%
Share of women in management positions in revenue generating functions (such as sales or that
32%
contribute directly to the output of products or services)
Share of women in management level positions 26%
Share of women in top management positions 25%
----- End of picture text -----

Gender Pay Gap - Mean and Median Pay Gap (India) - LL

Gender Pay Gap - Mean and Median Pay Gap (India) - LL
Category	Women 1,141,669	Men 894,127
Mean (INR)
Median (INR)	652,688	578,174

Gender Pay Break Up in FY24 (India) - Lupin Limited

==> picture [523 x 29] intentionally omitted <==

----- Start of picture text -----

Level No. of No. of Men Average Average Male
Women Female Salary Salary
----- End of picture text -----

Gender Pay Break Up in FY24 (India) - Lupin Limited
Level	No. of Women	No. of Men	Average Female Salary	Average Male Salary
Executive level (base salary)	21	193	7,272,836	10,127,621
Executive level (base salary+ other cash incentives)	21	193	8,143,530	11,458,111
Management level (base salary only)	248	1,908	2,063,817	2,120,855
Management level (base salary+ other cash incentives)	248	1,908	2,105,882	2,220,621
Non-management level (base salary only)	716	15,165	620,369	557,425
Share of women in total workforce			18%

Corporate Overview Statutory Reports Financial Statements 161

New Employee Hires (ROW) - FY24

Category	<30 years		30-50 years		>50 years		Total 225 40 54 4
	Male 36 14 15 1	Female 43 11 17 2	Male 55 2 10 0	Female 72 5 12 1	Male 10 5 0 0	Female 9 3 0 0
Employee (Permanent)
Employees (Other than Permanent) (Apprentices, Trainees, Interns, Part-timers)
Workers (Permanent)
Workers (Other than Permanent)

New Employee Hires (India) - FY24

Category	<30 years		30-50 years		>50 years		Total 4,853 24 500 4,329 54 47 311
	Male 3,383 0 60 3,323 13 32 264	Female 254 0 33 221 28 0 43	Male 1,096 13 369 714 3 15 4	Female 104 5 32 67 10 0 0	Male 15 6 5 4 0 0 0	Female 1 0 1 0 0 0 0
Employees (Permanent)
Senior Management
Middle Management
Junior Management
Employees (Other than Permanent) (Apprentices, Trainees, Interns, Part-timers)
Workers (Permanent)
Workers (Other than Permanent)

New Employee Hires (North America) - FY24

New Employee Hires (North America) - FY24
Category				Women		Men
Employee Permanent				64		50
Hiring Cost
Category	FY24	FY23		FY22		FY21
Total number of new employee hires	5,192	4,099		4,625		NA
Percentage of open positions filled by internal candidates (internal hires)	1223	39		19.2		NA
Average hiring cost/FTE	15,970	56,531		14,400		NA

Employee Turnover

New Employee Hires - FY24- India

Category	<30 years		30-50 years		>50 years		Total 3,514 22 85 273
	Male 1,822 4 27 244	Female 141 12 0 24	Male 1,391 1 20 4	Female 110 4 0 1	Male 46 0 37 0	Female 4 1 1 0
Employee (Permanent)
Employees (Other than Permanent) (Apprentices, Trainees, Interns, Part-timers)
Workers (Permanent)
Workers (Other than Permanent)

162 LUPIN LIMITED | Integrated Report 2023-2024

Total Employees Separated (Voluntary) FY24

	y) FY24	y) FY24
Category	<30 years		30-50 years		>50 years		Total 3,512
	Male 1,821 4 27 244	Female 141 12 0 24	Male 1,390 1 20 4	Female 110 4 0 1	Male 46 0 37 0	Female 4 1 1 0
Employee (Permanent)
Employees (Other than Permanent such as interns, trainees / apprentices, part time employees, etc)							22
Workers (Permanent)							85
Workers (Other than Permanent)							273

Total Employees Separated FY24- ROW

Category	<30 years		30-50 years		>50 years		Total 160 24 124 1
	Male 15 12 27 0	Female 12 9 33 1	Male 59 1 35 0	Female 57 1 29 0	Male 12 0 0 0	Female 5 1 0 0
Employee (Permanent)
Employees (Other than Permanent such as interns, trainees/apprentices, part time employees, etc)
Workers (Permanent)
Workers (Other than Permanent)

Total Employees Separated (Voluntary) FY24- ROW

Category	<30 years		30-50 years		>50 years		Total 78 5 9 0
	Male 6 0 1 0	Female 4 1 0 0	Male 33 1 5 0	Female 29 1 3 0	Male 3 1 0 0	Female 3 1 0 0
Employee (Permanent)
Employees (Other than Permanent such as interns, trainees/apprentices, part time employees, etc)
Workers (Permanent)
Workers (Other than Permanent)

Total Employees Separated (North America) - FY24

Total Employees Separated (North America) - FY24
Category	Women	Men
Employee (Permanent)	39	25
Employees (Other than Permanent such as interns, trainees/apprentices, part time employees, etc.)	10	6
Total Employees Separated (Voluntary) - FY24
Category	Women	Men
Employee (Permanent)	23	25
Employees (Other than Permanent such as interns, trainees / apprentices, part time employees, etc)	5	4

Corporate Overview Statutory Reports Financial Statements 163

Training Hours

Training Data per Topic (India) - FY24

==> picture [524 x 35] intentionally omitted <==

----- Start of picture text -----

Total Training Hours
Level
Male Female
----- End of picture text -----

	Total Training Hours	Total Training Hours
	Male	Female
Technical Non-Technical Prevention of Sexual Harassment Skill-Upgradation Total Training amount spent per FTE Average amount spent per FTE	1,166,233 69,535 145,258 18,116 16,134 1,357 250 73 25,675 6,974

Training Data per Topic (ROW) - FY24

==> picture [524 x 35] intentionally omitted <==

----- Start of picture text -----

Total Training Hours
Level
Male Female
----- End of picture text -----

	Total Training Hours	Total Training Hours
	Male	Female
Technical Non-Technical Prevention of Sexual Harassment Skill-Upgradation Total Training amount spent Average amount spent per FTE	3,616 3,463 80 105 0 0 6,591 11,097 16,400,710 488,255

Training Data per Topic (North America) - FY24

==> picture [524 x 35] intentionally omitted <==

----- Start of picture text -----

Total Training Hours
Level
Male Female
----- End of picture text -----

	Total Training Hours	Total Training Hours
	Male	Female
Technical Non-Technical Prevention of Sexual Harassment Skill-Upgradation	2,694 827 50 130	2,047 692 43 72

Training Data Across Geographies FY24 - India

Training Data Across Geographies FY24 - India
Category	2022-23 1,711,297 65,309,762	2023-24 1,416,956 132,678,981
Total hours of training
Total amount spent on training

164 LUPIN LIMITED | Integrated Report 2023-2024

Training Data FY24 (North America)

Training Data FY24 (North America)
Category	FY24	FY23
Total hours training	9,348	6,554
Total amount spent on training (USD)	29,613,557	31,519,666
Training Data FY24 - ROW
Category	FY24	FY23
Total hours training	16,219	27,016
Total amount spent on training (INR)	28,859,219	22,854,727

Rate of Return to Employment (India) - FY24

==> picture [523 x 35] intentionally omitted <==

----- Start of picture text -----

Permanent Employees Permanent Workers
Category Unit
Male Female Male Female
----- End of picture text -----

		Permanent Employees	Permanent Employees	Permanent Workers	Permanent Workers
		Male	Female	Male	Female
Employees entitled for parental leave Employees that took parental leave Employees that returned to work in the reporting period after parental leave ended Rate of Return to work that took parental leave	No. No. %	174 144 66 114	121 105 56 71	2,694 827 50 130	2,047 692 43 72

Rate of Return to Employment - FY24 USA (North America)

==> picture [524 x 35] intentionally omitted <==

----- Start of picture text -----

Permanent Employees Permanent Workers
Category Unit
Male Female Male Female
----- End of picture text -----

		ica)	ica)
		Permanent Employees		Permanent Workers
		Male	Female	Male	Female
Employees entitled for parental leave Employees that took parental leave Employees that returned to work in the reporting period after parental leave ended Rate of Return to work that took parental leave	No. No. No. %	236 8 7 87.5	151 5 5 100	0 0 0 0	0 0 0 0

Rate of Return to Employment - FY24 - ROW

==> picture [524 x 35] intentionally omitted <==

----- Start of picture text -----

Permanent Employees Permanent Workers
Category Unit
Male Female Male Female
----- End of picture text -----

		Permanent Employees	Permanent Employees	Permanent Workers	Permanent Workers
		Male	Female	Male	Female
Employees entitled for parental leave Employees that took parental leave Employees that returned to work in the reporting period after parental leave ended Rate of Return to work that took parental leave	No. No. No. %	390 8 8 100%	431 14 8 57%	5 0 0 0%	20 1 1 100%

Employee Wellbeing

==> picture [523 x 30] intentionally omitted <==

----- Start of picture text -----

Category FY24 FY23 What was your target for FY24
----- End of picture text -----

Employee Wellbeing
Category	FY24	FY23	What was your target for FY24
% of employees with top level of engagement, satisfaction, wellbeing, or employee net promoter score (eNPS) % of employees who responded to the survey	80% 89%	NA NA	80% 100%

Corporate Overview Statutory Reports Financial Statements 165

Benefits provided to Permanent Employees and Temporary Employees

Category	FY24	FY24
	Permanent Employees Yes Yes Yes Yes Yes Yes - 26 Weeks Yes - 1 Week No No No No No Yes Yes Yes Yes No Yes No No No Yes Yes	Contractors NA Yes Yes NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Life Insurance
Health insurance
Accident insurance
Parental Medical Insurance
Disability
Paid parental leave for the primary caregiver (please enter total number of paid leave in weeks offered to the majority of your employees)
Paid parental leave for the non-primary caregiver (please enter total number of paid leave in weeks offered to the majority of your employees)
Paid family or care leave beyond parental leave (care for a child, spouse, partner, dependent, parent, sibling, or other designated relation with a physical or mental health condition)
Bereavement leave (additional to Normal leaves allotted)
Leave for Haj (additional to Normal leaves allotted)
Leave for Baptism (additional to Normal leaves allotted)
Leave for Circumcision Ceremony (additional to Normal leaves allotted)
Retirement provision
Stock ownership
Transportation
Housing
Food allowance
Extra paid holidays
Citizenship leave
Children Education Reimbursement
Higher Education Policy
Day care facilities
Employee Car Scheme policies

Datapoints mentioned in the chapter

Goal	Progress To be calculated once all HR SPOCs share info Pending Achieved overall engagement score of 80% globally and 89% in India Spent 19188 hours in employee volunteering as part of community initiatives
15% women employees across all business units by 2030.
Complete accessibility audit for PWD for all sites in India by 2030
Achieve and maintain an employee satisfaction score of 80% or higher on annual surveys by 2025
Collectively reach 50,000 hours employee volunteer hours by 2030

166 LUPIN LIMITED | Integrated Report 2023-2024

Induction	Participants in FY24 2,044 participants 499 active buddies. Of these 114 are newly certified, 172 are engaged in experential learning
1. Udbhav - Induction Program
2. Buddy Program

Training Program	Participants in FY24 84% (among permanent employees), contractual staff trained = 2,350 47 Committee members 23 participants 25 participants, 2 recieved PhD in FY24 4 participants 65 participants 23 participants 200 senior leaders Quantitative impact of business benefts, % FTE participation details - pending Quantitative impact of business benefts - pending 200+ women 135 participants 5 councils (Research and Development for Pune, Biotech R&D and manufacturing division of Pune, Corporate, Manufacturing and Quality, IRF) 10,549 trees
1. PoSH e-module completion rate
2. Annual in person refresher
3. Virtual PosH refresher workshop
4. Ascent program
5. Postgraduate Diploma in Advanced Biotechnology
6. Advanced Program in Sales Management (APSM) for IRF
7. Management Development Program (MDP) for IRF
8. L.A.M.P: Lead, Accelerate, Motivate, Perform
9. Enhance
10. Ascent/an alternate program as decided by HR
11. D&I drive
12. Multiple events for employees' children
13. Diversity Councils at Lupin
14. Plantation as part of Desh Bandhu Gupta Spirit of Lupin Awards

Human Rights Audit

Human Rights Audit	Human Rights Audit
Coverage “100% of manufacturing sites of Lupin and LMSL subsidiaries)“		17 total sites (15 of Lupin Limited sites and 2 wholly owned
Human Capital Return on Investment
Category		FY24	FY23	FY22	FY21
a) Total Revenue, as specified in the "Denominator" question		200,108	166,417	161,928	149,270
b) Total Operating Expenses		177,087	159,985	179,197	136,241
c) Total employee-related expenses (salaries + benefits)		34,946	30,872	29,893	28,259
Resulting HC ROI (a - (b-c)) / c		1.6	1.2	0.4	1.4

Corporate Overview Statutory Reports Financial Statements 167

Our India Workforce in 2024

Lupin Limited

Category	<30 years		30-50 years		>50 years		Total 18,256 215 3,825 14,216 393 954 259 1213
	Male 6,908 0 137 6,771 0 146 217 363 19,862	Female 436 0 45 391 0 2 38 40	Male 9,946 93 3,276 6,577 232 556 4 560	Female 509 17 193 299 161 1 0 1	Male 419 102 154 163 0 240 0 240	Female 38 3 20 15 0 9 0 9
Employee (Permanent)
Senior Management
Middle Management
Junior Management
Employees (Other than Permanent)
Workers (Permanent)
Workers (Other than Permanent)
Total Workers
Grand Total

Lupin Digital health

Category	<30 years		30-50 years		>50 years		Total 139 8 97 34 49 0 0 0
	Male 26 0 23 3 9 0 0 0 188	Female 27 0 12 15 26 0 0 0	Male 69 7 55 7 4 0 0 0	Female 16 0 7 9 10 0 0 0	Male 1 1 0 0 0 0 0 0	Female 0 0 0 0 0 0 0 0
Employee (Permanent)
Senior Management
Middle Management
Junior Management
Employees (Other than Permanent)
Workers (Permanent)
Workers (Other than Permanent)
Total Workers
Grand Total

Lupin Daignostics

Category	<30 years		30-50 years		>50 years		Total 645 4 51 590 0 0 0 0
	Male 190 0 0 190 0 0 0 0 645	Female 70 0 0 70 0 0 0 0	Male 304 3 30 271 0 0 0 0	Female 75 0 20 55 0 0 0 0	Male 6 1 1 4 0 0 0 0	Female 0 0 0 0 0 0 0 0
Employee (Permanent)
Senior Management
Middle Management
Junior Management
Employees (Other than Permanent)
Workers (Permanent)
Workers (Other than Permanent)
Total Workers
Grand Total

168 LUPIN LIMITED | Integrated Report 2023-2024

Lupin Manufacturing Solutions

==> picture [523 x 18] intentionally omitted <==

----- Start of picture text -----

Row Labels Male Female Total
----- End of picture text -----

Employee (Permanent) Senior Management Middle Management Junior Management Workers (Permanent) Workers (Other than Permanent) Total Workers Grand Total	583 6 60 517 105 20 125 754	30 0 1 29 0 16 16	613 6 61 546 105 36 141

Totals Lupin India (Employees + Workers)

==> picture [523 x 49] intentionally omitted <==

----- Start of picture text -----

Employees Workers
Employee Employees Workers Workers
(Other than (Other than
Lupin India (Permanent) (Total) (Permanent) (Total) Total
Permanent) Permanent)
(A) (A+B) (C ) (C+D)
(B) (D)
----- End of picture text -----

Lupin India	Employee (Permanent) (A)	Employees (Other than Permanent) (B)	Employees (Total) (A+B)	Workers (Permanent) (C )	Workers (Other than Permanent) (D)	Workers (Other than Permanent) (D)	Workers (Total) (C+D)	Total
Lupin Limited	18,256	393	18,649	954	259		1,213	19,862
Lupin Digital Health	139	49	188	0	0		0	188
Lupin Diagnostics	645	0	645	0	0		0	645
Lupin
Manufacturing	613	0	613	105	36		141	754
Solutions
Totals	19,653	442	20,095	1,059	295		1,354	21,449
Total Permanent	(On Payroll)							20,712
Total - Other than Permanent								737
Grand Total (Employees + Workers)								21,449

Lupin India (Age, Gender, Level)

Category	<30 years		30-50 years		>50 years		Total 19,653 233 4,034 15,386 442 1,059 295 1,354
	Male 7,124 0 160 6,964 9 146 217 363 19,862	Female 533 0 57 476 26 2 38 40	Male 10,902 109 3,421 7,372 236 661 24 685	Female 630 17 221 392 171 1 16 17	Male 426 104 155 167 0 240 0 240	Female 38 3 20 15 0 9 0 9
Employee (Permanent)
Senior Management
Middle Management
Junior Management
Employees (Other than Permanent)
Workers (Permanent)
Workers (Other than Permanent)
Total Workers
Grand Total

Corporate Overview Statutory Reports Financial Statements 169

Total Male				19,985
Total Female				1,464
Grand Total				21,449
Category	Male	Female		Totals
Employee (Permanent)	18,452	1,201		19,653
Employees (Other than Permanent)	245	197		442
Total Employees	18,697	1,398		20,095
Percentage	93%	7%
Workers (Permanent)	1,047	12		1,059
Workers (Other than Permanent)	241	54		295
Total Workers	1,288	66		1354
Percentage	95%	5%
Totals	19,985	1,464		21,449
Percentage	93%	7%

Internal (position filled by internal candidates) Hires - FY24 - India

Category	<30 years		30-50 years		>50 years		Total 1,159 0 224 935 0 459 0
	Male 555 0 13 542 0 19 0	Female 28 0 2 26 0 0 0	Male 516 0 193 323 0 239 0	Female 17 0 7 10 0 0 0	Male 42 0 8 34 0 201 0	Female 1 0 1 0 0 0 0
Employee (Permanent)
Senior Management
Middle Management
Junior Management
Employees (Other than Permanent) (Apprentices, Trainees, Interns, Part-timers)
Workers (Permanent)
Workers (Other than Permanent)

Internal (position filled by internal candidates) Hires - FY24 - ROW

Category	<30 years		30-50 years		>50 years		Total 20 1 0 0
	Male 2 0 0 0	Female 8 1 0 0	Male 8 0 0 0	Female 2 0 0 0	Male 0 0 0 0	Female 0 0 0 0
Employee (Permanent)
Employees (Other than Permanent) (Apprentices, Trainees, Interns, Part-timers)
Workers (Permanent)
Workers (Other than Permanent)

Internal (position filled by internal candidates) Hires - FY24 - USA

Internal (position flled by internal candidates) Hires - FY24 - USA Category	Male	Female	Totals
Employee (Permanent)	30	14	44
Grand Total	1,223

170 LUPIN LIMITED | Integrated Report 2023-2024

Social-4 - Health and Safety

Health and Safety (India)

==> picture [523 x 87] intentionally omitted <==

----- Start of picture text -----

FY24 FY23
Accident Accident
Total Total
Lost Time Frequency Lost Time Frequency
Category Injury Recordable No. of Rate (per Injury Recordable No. of Rate (per
Work Work
Frequency Fatalities one million Frequency Fatalities one million
Related Related
Rate man hours Rate man hours
Injuries Injuries
worked) worked)
----- End of picture text -----

Category	Injury Frequency Rate	Recordable Work Related Injuries	No. of Fatalities	Rate (per one million man hours worked)	Injury Frequency Rate	Recordable Work Related Injuries	No. of Fatalities	Rate (per one million man hours worked)
Employee	0.00	34	0	1.62	0.05	37	0	1.75
Contractual	0.12	60	0	2.48	0.09	86	0	3.85
Total	0.07	94	0	2.08	0.069	123	0	2.83

==> picture [523 x 87] intentionally omitted <==

----- Start of picture text -----

FY24 FY23
Accident Accident
Total Total
Lost Time Frequency Lost Time Frequency
Category Injury Recordable No. of Rate (per Injury Recordable No. of Rate (per
Work Work
Frequency Fatalities one million Frequency Fatalities one million
Related Related
Rate man hours Rate man hours
Injuries Injuries
worked) worked)
----- End of picture text -----

Category	Injury Frequency Rate	Recordable Work Related Injuries	No. of Fatalities	Rate (per one million man hours worked)	Injury Frequency Rate	Recordable Work Related Injuries	No. of Fatalities	Rate (per one million man hours worked)
Employee	0.26	65	0	2.81	0	79	0	3.58
Contractual	0.16	145	0	5.82	0.21	179	0	7.63
Total	0.21	210	0	4.37	0.11	258	0	5.67

Suppliers

Critical Supplier Identification

==> picture [523 x 18] intentionally omitted <==

----- Start of picture text -----

Category Unit FY24 FY23 FY22
----- End of picture text -----

Total tier 1 suppliers Critical tier - 1 suppliers Critical non-tier - 1 suppliers MSMEs/small producers	No. No. No. No.	9,400 498 22 3,028	10,356 516 22 3,021	10,982 519 3 2,874

Share Of Total Procurement Budget Spent (%)

MSMEs/small producers Critical non-tier - 1 suppliers Critical tier - 1 suppliers Total tier - 1 suppliers	% % % %	12% 12% 69% 81%	11% 10% 71% 83%	9% 20% 60% 71%

Corporate Overview Statutory Reports Financial Statements 171

Supplier Assessment

A. Coverage and progress of our supplier assessment program

Sr. No	Supplier Assessment Total number of suppliers assessed via desk assessments/on-site assessments Number of suppliers assessed with substantial actual/potential negative impacts % of significant suppliers assessed % of suppliers with substantial actual/potential negative impacts with agreed Number of suppliers with substantial actual/potential negative impacts that were	FY24 309 Confidential Majority of significant suppliers were assessed (~60%+) CAPA agreement is to be initiated NA
1.1
1.2
1.3
1.4
1.5

B. Coverage and progress of suppliers with corrective action plans

Sr. No	Supplier Assessment Total number of suppliers supported in corrective action plan implementation % of suppliers assessed with substantial actual/potential negative impacts supported in corrective action plan implementation % of significant suppliers assessed % of suppliers with substantial actual/potential negative impacts with agreed corrective action/improvement plan Number of suppliers with substantial actual/potential negative impacts that were terminated	FY24 CAPAs developed; but action plan implementation is to be started NA NA NA NA
1.1
1.2
1.3
1.4
1.5

C. Coverage and progress of suppliers in capacity building programs

Sr. No	Supplier Assessment Total number of suppliers in capacity building programmes % of significant suppliers in capacity building programmes	FY24 NA NA
1.1
1.2

Healthcare Clinical Pipeline

==> picture [524 x 18] intentionally omitted <==

----- Start of picture text -----

Global
----- End of picture text -----

Innovation Phase	Share of Projects	Number of Projects	Share of R&D Budget Invested	Success Rate
Total Launch	100% 100%	107 107	100% 100%	100% 100%

172 LUPIN LIMITED | Integrated Report 2023-2024

Product Innovations (Healthcare)

Number of projects, breakouts in R&D investments (% total of R&D spend), and success rates (%) for each of the phases of the healthcare innovation process below:

==> picture [523 x 28] intentionally omitted <==

----- Start of picture text -----

Global
----- End of picture text -----

Innovation Phase	Share of Projects	Number of Projects	Share of R&D Budget Invested	Success Rate
Total Launch	100% 100%	107 107	100% 100%	100% 100%

Percentage of revenues generated by the different product types and by the different types of product innovations that have been launched in the past fiscal year

==> picture [523 x 28] intentionally omitted <==

----- Start of picture text -----

India Global
----- End of picture text -----

Product optimizations launched in the previous 5 years Unchanged or minimally changed product or services Total (=100% only)	12% 88% 100%	Product optimizations launched in the previous 5 years Unchanged or minimally changed product or services Total (=100% only)	27% 73% 100%

173

174

175

176

177

178

179

==> picture [68 x 39] intentionally omitted <==

==> picture [133 x 31] intentionally omitted <==

----- Start of picture text -----

Christoph Funke
Chief Technical Operations Officer
Lupin Limited
----- End of picture text -----

180 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [104 x 29] intentionally omitted <==

==> picture [178 x 41] intentionally omitted <==

==> picture [523 x 36] intentionally omitted <==

----- Start of picture text -----

Report Page
Principle Statement Chapter Number
----- End of picture text -----

UNGC Align	UNGC Align	ment
Principle		Statement	Report Chapter	Page Number
Human Rights	Principle 1	Businesses should support and respect the protection of internationally-proclaimed Human Rights	Human Capital	108-109
	Principle 2	Businesses should make sure that they are not complicit in Human Rights abuses	Human Capital	108-109
Labour Rights	Principle 3	Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining	Human Capital	108-109
	Principle 4	Eliminate all forms of forced and compulsory labor	Human Capital	108-109
	Principle 5	The effective abolition of child labour	Human Capital	108-109
	Principle 6	The elimination of discrimination in respect of employment and occupation	Human Capital	108-109
Environment	Principle 7	Businesses should support a precautionary approach to environmental challenges	Natural Capital	112-121
	Principle 8	Businesses should undertake initiatives to promote greater environmental responsibility	Natural Capital	112-121
	Principle 9	Businesses should encourage the development and diffusion of environmentally friendly technologies	Natural Capital	112-121
Anti- Corruption	Principle 10	Businesses should work against corruption in all its forms, including extortion and bribery	Governance, Ethics, and Compliance	56

Corporate Overview Statutory Reports Financial Statements 181

==> picture [496 x 696] intentionally omitted <==

182 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [120 x 30] intentionally omitted <==

==> picture [179 x 41] intentionally omitted <==

Principle Governance Disclose the Company’s governance around climate-related risks and opportunities. Strategy Disclose the actual and potential impacts of climate- related risks and opportunities on the Company’s businesses, strategy, and fnancial planning where such information is material. Risk Management Disclose how the Company identifes, assesses, and manages climate- related risks. Metrics and Targets Disclose the metrics and targets used to assess and manage relevant climate- related risks and opportunities where such information is material..	Recommended Disclosures Describe the board’s oversight of climate- related risks and opportunities. Describe management’s role in assessing and managing climate-related risks and opportunities. Describe the climate-related risks and opportunities the Company has identifed over the short, medium, and long term. Describe the impact of climate-related risks and opportunities on the Company’s businesses, strategy, and fnancial planning. Describe the resilience of the Company’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. Describe the Company’s processes for identifying and assessing climate-related risks. Describe the Company’s processes for managing climate-related risks. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the Company’s overall risk management. Disclose the metrics the Company uses to assess climate-related risks and opportunities in line with its strategy and risk management process. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. Describe the targets used by the Company to manage climate-related risks and opportunities and performance against targets.	Report Chapter Governance, Ethics and Compliance; Taskforce on Climate Disclosures (TCFD) Report Governance, Ethics and Compliance; Risk Management, TCFD Report Natural Capital, TCFD Report Natural Capital, TCFD Report Natural Capital, TCFD Report Risk management, TCFD Report Risk management, TCFD Report Risk management, TCFD Report Natural Capital and ESG Databook Natural Capital and ESG Databook Natural Capital	Page Number 56, 5-6 56, 134, 5-6 116-117, 7-12 116-117, 7-12 116-117, 7-12 135, 136, 13-15 135, 136, 13-15 135, 136, 13-15 112-121, 156-158 116, 153-158 114	CDP Alignment 4.1.2; 4.3 2.2.1; 2.1; 2.2.2 3.1; 3.1.1; 3.6; 3.6.1; 5.2; 5.1; 5.1.1; 5.3.1; 5.3.2 7.53; 7.53.1; 7.53.2; 7.54.1; 7.54.2; 7.6; 7.7; 7.8; 7.8.1; 7.52

183

==> picture [474 x 702] intentionally omitted <==

184

==> picture [448 x 702] intentionally omitted <==

185

==> picture [448 x 702] intentionally omitted <==

186

==> picture [515 x 702] intentionally omitted <==

187

==> picture [448 x 702] intentionally omitted <==

188

==> picture [438 x 702] intentionally omitted <==

189

==> picture [474 x 702] intentionally omitted <==

190

==> picture [445 x 702] intentionally omitted <==

191

==> picture [450 x 702] intentionally omitted <==

192

==> picture [519 x 702] intentionally omitted <==

193

==> picture [440 x 702] intentionally omitted <==

194

==> picture [436 x 702] intentionally omitted <==

195

==> picture [438 x 702] intentionally omitted <==

196

==> picture [437 x 702] intentionally omitted <==

Business Overview

Business Overview
Ten Years Financial Summary	198
Statutory Reports
Directors’ Report	200
Corporate Governance Report	222
Independent Auditor’s Certificate
on Corporate Governance	241
Business Responsibility & Sustainability Report	242
Financial Statements
Independent Auditor’s Report on
Consolidated Financial Statements	274
Consolidated Financial Statements	284
Independent Auditor’s Report on
Standalone Financial Statements	370
Standalone Financial Statements	382
GRI Content Index	449

198 LUPIN LIMITED | Integrated Report 2023-2024

Ten Years Financial Summary

CONSOLIDATED BALANCE SHEET

==> picture [486 x 447] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
As at March 31, 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
SOURCES OF FUNDS
Shareholders' funds
Equity Share Capital 899.0 901.2 903.2 904.2 905.0 906.0 907.4 909.0 910.0 911.4
Reserves & Surplus 90,833.3 110,732.5 134,072.5 134,866.4 136,517.3 124,461.0 137,124.0 120,623.7 123,735.0 141,991.5
91,732.3 111,633.7 134,975.7 135,770.6 137,422.3 125,367.0 138,031.4 121,532.7 124,645.0 142,902.9
Non-Controlling Interest 241.0 320.8 345.2 400.8 468.6 444.6 549.7 687.1 783.2 831.6
Borrowings 5,371.2 71,775.2 79,660.9 71,428.0 84,961.5 63,053.2 47,829.8 38,441.6 42,440.5 26,699.1
Deferred Tax Liabilities (net) 1,527.5 3,266.8 3,948.5 2,855.3 2,882.8 1,995.4 2,297.7 2,408.3 2,294.3 2,458.7
Other Liabilities (incl. Provisions) 33,737.7 39,252.1 47,142.5 52,599.1 53,758.5 58,978.3 47,395.8 55,142.5 59,396.3 67,079.5
TOTAL 132,609.7 226,248.6 266,072.8 263,053.8 279,493.7 249,838.5 236,104.4 218,212.2 229,559.3 239,971.8
APPLICATION OF FUNDS
Property, Plant & Equipment and 27,200.3 64,515.2 87,229.2 79,135.0 87,063.9 60,866.3 59,183.4 52,575.2 61,364.6 65,532.6
Other Intangible Assets
Capital Work-in-Progress
and Intangible Assets under Development (incl. Capital 6,745.3 32,145.5 24,639.0 26,555.6 17,293.9 10,953.4 11,013.1 12,392.4 13,758.5 8,391.5
Advances)
33,945.6 96,660.7 111,868.2 105,690.6 104,357.8 71,819.7 70,196.5 64,967.6 75,123.1 73,924.1
Goodwill 16,252.8 22,654.4 23,100.1 24,484.9 23,803.2 18,514.8 19,624.2 21,241.0 22,187.8 23,250.4
Investments 55.4 143.3 220.0 267.1 317.7 360.7 780.7 776.0 771.3 695.4
Deferred Tax Assets (net) 2,561.7 3,358.5 5,076.4 7,165.6 7,340.0 1,743.1 1,802.1 1,697.3 1,556.5 3,025.3
Other Assets
Inventories 25,036.1 32,736.5 36,422.8 36,624.9 38,367.7 34,568.7 40,920.1 46,307.3 44,917.6 49,539.0
Receivables 26,475.2 45,487.6 43,073.4 51,922.1 51,498.0 54,459.3 44,743.2 42,619.4 44,807.0 46,920.5
Cash & Bank Balances (refer note iii) 21,304.7 8,237.7 28,135.4 16,431.7 32,523.5 47,935.2 41,203.2 19,214.4 17,505.8 22,169.3
Others 6,978.2 16,969.9 18,176.5 20,466.9 21,285.8 20,437.0 16,834.4 21,389.2 22,690.2 20,447.8
79,794.2 103,431.7 125,808.1 125,445.6 143,675.0 157,400.2 143,700.9 129,530.3 129,920.6 139,076.6
TOTAL 132,609.7 226,248.6 266,072.8 263,053.8 279,493.7 249,838.5 236,104.4 218,212.2 229,559.3 239,971.8
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 199

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

==> picture [486 x 428] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended March 31, 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
INCOME
Sales 126,932.2 137,578.7 171,198.0 155,598.4 143,180.5 151,428.0 149,269.9 161,927.9 162,699.8 196,563.4
Other Operating Income 1,703.0 4,976.7 3,745.3 2,443.1 3,465.1 2,319.6 2,359.7 2,126.9 3,716.8 3,544.8
Other Income 2,397.5 1,851.9 1,065.1 1,503.5 3,330.1 17,001.9 1,362.9 1,416.9 733.6 1,201.7
Total Revenue 131,032.7 144,407.3 176,008.4 159,545.0 149,975.7 170,749.5 152,992.5 165,471.7 167,150.2 201,309.9
EXPENSES
Cost of Materials 41,570.4 43,325.7 50,014.3 52,744.0 49,460.9 54,306.0 53,622.4 64,812.4 67,797.6 66,434.7
Employee Benefits Expense 17,473.4 21,416.2 28,495.2 28,647.1 27,701.7 29,868.4 28,259.0 29,893.0 30,871.5 34,945.7
Manufacturing and Other Expenses 33,395.5 40,960.0 51,502.4 45,175.3 47,275.6 49,817.0 44,079.4 66,477.2 49,766.3 60,622.6
Total Expenses 92,439.3 105,701.9 130,011.9 126,566.4 124,438.2 133,991.4 125,960.8 161,182.6 148,435.4 162,003.0
Profit before Interest,
38,593.4 38,705.4 45,996.5 32,978.6 25,537.5 36,758.1 27,031.7 4,289.1 18,714.8 39,306.9
Depreciation & Tax
Finance Cost 98.1 594.7 1,525.3 2,043.5 3,024.9 3,629.8 1,406.4 1,427.7 2,743.0 3,116.1
Depreciation, Amortisation and 4,347.0 4,871.3 9,122.3 25,502.2 8,460.5 25,595.4 8,874.1 16,587.1 8,806.9 11,968.1
Impairment Expense
Profit before Tax 34,148.3 33,239.4 35,348.9 5,432.9 14,052.1 7,532.9 16,751.2 (13,725.7) 7,164.9 24,222.7
Current Tax 10,041.6 11,433.5 10,882.1 5,349.8 8,496.8 6,869.7 4,384.7 1,611.5 2,464.2 6,338.5
Deferred Tax (337.6) (840.1) (1,097.0) (2,465.2) 382.6 4,701.4 100.5 (240.0) 223.8 (1,471.5)
Net Profit/(Loss) before
Discontinued Operations, Share of 24,444.3 22,646.0 25,563.8 2,548.3 5,172.7 (4,038.2) 12,266.0 (15,097.2) 4,476.9 19,355.7
Profit from joint Venture and
Non-Controlling Interest
Profit from Discontinued - - - - 944.6 1,301.0 - - - -
Operations
Share of Profit from - 49.0 82.5 35.2 37.5 39.4 13.3 3.6 - -
joint Venture Entity
Share of Profit/(Loss) attributable to 411.9 87.6 71.7 70.9 89.3 (3.9) 114.0 186.8 176.1 210.9
Non-Controlling Interest
Net Profit/(Loss) 24,032.4 22,607.4 25,574.6 2,512.6 6,065.5 (2,693.9) 12,165.3 (15,280.4) 4,300.8 19,144.8
----- End of picture text -----

Notes:

i) Figures are suitably regrouped to make them comparable.

ii) The Company has transitioned the basis of accounting from Indian generally accepted accounting principles (“IGAAP”) to Ind AS with effect from April 1, 2016. Accordingly, Balance Sheet for 2015 onwards and Statement of Profit and Loss for 2016 onwards are as per Ind AS.

iii) Cash and bank balances includes Current Investments and Non Convertible Debentures having maturity more than 12 months which represents investments of surplus funds.

200 LUPIN LIMITED | Integrated Report 2023-2024

Directors’ Report

To the Members,

Your Directors are pleased to present their report on business and operations of your Company for the year ended March 31, 2024.

Financial Results

==> picture [486 x 159] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Standalone Consolidated
2023-24 2022-23 2023-24 2022-23
Sales 143164.3 110430.7 196563.4 162699.8
Other operating income 3500.7 2157.6 3544.8 3716.8
Other Income 1067.3 912.6 1201.7 733.6
Profit before interest, depreciation and tax 35657.9 11739.2 39306.9 18714.8
Less: Finance costs 563.5 984.4 3116.1 2743.0
Less: Depreciation, amortisation and impairment expenses 7247.5 5483.4 11968.1 8806.9
Profit before tax 27846.9 5271.4 24222.7 7164.9
Less: Provision for taxation (including deferred tax) 4586.0 1019.3 4867.0 2688.0
Profit after tax 23260.9 4252.1 19355.7 4476.9
Share of Profit attributable to non-controlling Interest - - 210.9 176.1
Net Profit attributable to Owners of the Company 23260.9 4252.1 19144.8 4300.8
----- End of picture text -----

Performance Review

Consolidated Revenue from Operations was ₹ 200108.2 million, higher by 20.2% over FY 2022-23. International business contributed 64.6%. Consolidated profit before tax was ₹ 24222.7 million. Profit after tax was ₹ 19144.8 million as against ₹ 4300.8 million in FY 2022-23. Earnings per share (Basic) stood at ₹ 42.05 as against ₹ 9.46 in FY 2022-23.

Dividend

Your Directors are pleased to recommend dividend of 400% (₹ 8/- per equity share). The total dividend amount is ₹ 3646 million.

In compliance with Regulation 43A(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), the Dividend Distribution Policy has been hosted on the website of the Company www.lupin.com, web link for which is https://www.lupin.com/wp-content/ uploads/2021/04/dividend-distribution-policy.pdf.

Share Capital

During the year, the paid-up share capital of the Company increased by ₹ 1.4 million, consequent to the allotment of 697573 equity shares of ₹ 2 /- each, to eligible employees of the Company and its subsidiaries upon exercising vested options under various stock option plans. The paid-up equity share capital as on March 31, 2024 was ₹ 911.4 million.

Credit Rating

ICRA Limited (‘ICRA’) re-affirmed the rating ‘ A1+ ’ (pronounced ‘ICRA A one plus’) for the Company’s bank credit facilities of ₹ 30000 million, which indicates very strong degree of safety regarding timely payment of financial obligations.

Subsidiary Companies/Joint Venture

As on March 31, 2024, the Company had 31 subsidiaries and a joint venture.

As part of restructuring, Bellwether Pharma Pty Ltd., Australia, was liquidated, effective June 11, 2023.

As part of business expansion, ‘Lupin Atharv Ability Limited’ and ‘Lupin Manufacturing Solutions Limited’, were incorporated as wholly owned subsidiaries of the Company, on July 17, 2023 and July 24, 2023, respectively.

Lupin Manufacturing Solutions Limited, was incorporated to undertake business of manufacture, sale, export and import of all types of Active Pharmaceutical Ingredients (‘APIs’)/ intermediates, fermentation and undertaking contract development and manufacturing activities. Vide Business Transfer Agreement, the Company carved-out two of its API manufacturing sites situate at Dabhasa and Visakhapatnam and select R&D operations, including fermentation, at Lupin Research Park, Pune, to Lupin Manufacturing Solutions Limited.

It was decided to carve-out the generics business in India along with rights, titles, interests, liabilities and obligations into a separate entity as a going concern on slump sale basis, by way of Business Transfer Agreement. Accordingly, the name of ‘Lupin Atharv Ability Limited’ was changed to ‘Lupin Life Sciences Limited’.

In September 2023, the Company acquired Medisol S.A.S., France and Lymed S.A.S., France, which specialize in generics injectables and are engaged in developing and commercializing its products, in pharmacies and hospitals in France.

Corporate Overview Statutory Reports Financial Statements 201

In terms of the first proviso to Section 129(3) of the Companies Act, 2013 (‘Act’) and Rules 5 and 8(1) of the Companies (Accounts) Rules, 2014, salient features of the financial statements, performance and financial position of each subsidiary and joint venture are given in Form No. AOC - 1 as Annexure ‘A’ to this Report. As stipulated under Section 136 of the Act, financial statements of subsidiaries and joint venture are available for inspection by Members at the registered office of the Company during business hours. The Company shall provide free of cost a copy of the financial statements of its subsidiaries and joint venture to Members upon their request. The said financial statements are also available on the Company’s website www.lupin.com.

In compliance with Regulation 46(2)(h) of the Listing Regulations, policy for determining material subsidiaries has been hosted on the Company’s website www.lupin.com, web link for which is https:// www.lupin.com/wp-content/uploads/2021/04/ policy-for-determining-material-subsidiaries. pdf. Nanomi B.V., the Netherlands (‘Nanomi’), Lupin Atlantis Holdings SA, Switzerland (‘LAHSA’) and Lupin Pharmaceuticals, Inc., USA (‘LPI’), are wholly owned material subsidiaries of the Company. Pursuant to Regulation 24(1) of the Listing Regulations, Mr. Mark D. McDade, Independent Director, is on the Board of Nanomi and Mr. Jean-Luc Belingard, Independent Director, is on the Boards of LAHSA and LPI.

Integrated Report

Integrated report is an effective tool to explore value creation by focusing on Company’s strategy, performance and governance based on six forms of capital i.e. financial capital, human capital, manufacturing capital, social capital, intellectual capital and natural capital. It provides the stakeholders financial and non-financial information of the Company and helps them to get a better understanding of the current position and long-term perspective of the Company and take well-informed decisions. The Integrated Report focuses on driving authentic, comprehensive and meaningful information covering all aspects of the Company’s performance.

Management Discussion and Analysis

As stipulated by Regulation 34(3) read with Schedule V(B) of the Listing Regulations, Management Discussion and Analysis forms part of the Integrated Report.

Corporate Governance Report

Your Directors reaffirm their continued commitment to adhere to the best standards of corporate governance and ethical practices. In compliance with Regulation 34(3) read with Schedule V(C) of the Listing Regulations, a report on Corporate Governance forms part of the Integrated Report. As stipulated by Schedule V(E) of the Listing Regulations, Auditors’ certificate confirming

compliance with the conditions of corporate governance is annexed to the Corporate Governance Report.

Business Responsibility and Sustainability Report

In terms of Regulation 34(2)(f) of the Listing Regulations, Business Responsibility and Sustainability Report (‘BRSR’) forms part of the Integrated Report. An assurance of BRSR Core by DNV Business Assurance India Private Limited is annexed to the Integrated Report.

Corporate Social Responsibility

The Company channels its Corporate Social Responsibility (‘CSR’) efforts through Lupin Human Welfare and Research Foundation (‘LHWRF’), its dedicated social responsibility arm. Founded by Dr. Desh Bandhu Gupta, the Company’s founder Chairman, LHWRF aims to assist the underprivileged, particularly in the most marginalized regions of India with its ‘Livelihoods’ and ‘Lives’ programs. Over the past 35 years, LHWRF has reached out to over 1.57 million beneficiaries in more than 4771 villages across eight states in India, bringing about positive changes in the lives and livelihoods of communities. A detailed write-up on Company’s initiatives towards CSR forms part of the Integrated Report. The CSR Policy, approved by the Board of Directors, has been hosted on the Company’s website www.lupin.com. Details of CSR activities undertaken by the Company are given in Annexure ‘B’ to this Report.

Directors’ Responsibility Statement

In compliance with the provisions of Section 134(3)(c) read with Section 134(5) of the Act, your Directors confirm that, to the best of their knowledge and belief: -

• i) in the preparation of the annual financial statements for the year ended March 31, 2024, the applicable accounting standards have been followed along with proper explanations relating to material departures;

• ii) they had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company at the end of the financial year March 31, 2024 and of the profit of your Company for the year;

• iii) they have taken proper and sufficient care for the 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 fraud and other irregularities;

• iv) the annual financial statements have been prepared on a going concern basis;

• v) they had laid down proper internal financial controls and that the same are adequate and were operating effectively; and

202 LUPIN LIMITED | Integrated Report 2023-2024

• vi) they had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Directors

In accordance with the provisions of Section 152 of the Act, Mr. Nilesh D. Gupta (DIN: 01734642), Managing Director, retires by rotation at the ensuing Annual General Meeting (‘AGM’) and is eligible for re-appointment.

Mr. Nilesh D. Gupta, is a Chemical Engineer from the University Department of Chemical Technology (UDCT), Mumbai and a graduate with honors from the Wharton School, University of Pennsylvania, USA, where he specialised in healthcare, strategic management and finance. Mr. Gupta has been instrumental in formulating and executing the core strategy that has helped the Company emerge as a global specialty and complex generics pharmaceutical powerhouse. Mr. Gupta is a Member of the Audit Committee, Stakeholders’ Relationship Committee, CSR Committee, Risk Management Committee and Strategy Committee of the Company.

In compliance with Regulation 17(1A) of Listing Regulations, at the 41[st] AGM held on August 3, 2023, the Members, vide Special Resolution, approved the continuation of directorship of Mr. Jean-Luc Belingard, Independent Director of the Company, who attained the age of 75 years on October 28, 2023.

The Board at its meeting held on May 6, 2024, appointed Mr. Jeffrey Kindler (DIN: 10592395) and Mr. Alfonso Zulueta (DIN: 10597962) as Additional Directors in the category of Non-executive, Independent Directors of the Company. Approval of Members for their appointments will be sought by way of Special Resolutions at the ensuing AGM.

Mr. Jeffrey Kindler has completed a Bachelor of Arts degree (Summa cum Laude) from Tufts University, USA and a Juris Doctor degree (Magna cum Laude) from Harvard Law School, USA. He served as a law clerk to Justice William J. Brennan, Jr. of the United States Supreme Court. Mr. Kindler is an experienced healthcare executive, investor and advisor. He brings over four decades of business experience and has held leadership positions at some of the world’s most recognized companies including Pfizer, where he served as Chairman & Chief Executive Officer, as well as McDonald’s Corporation and General Electric Company. Before that, Mr. Kindler was a partner at the law firm of Williams & Connolly. He is currently CEO of Centrexion Therapeutics, a privately held biotechnology company and a Senior Advisor to Blackstone. Mr. Kindler has a deep understanding of multinational corporate matters including regulations, litigations, compliance, crisis management, brand, franchise management, executive leadership and mergers & acquisitions.

Mr. Alfonso Zulueta completed an Economics undergraduate degree from De LA Salle University,

Manila, where he was conferred the 2023 Outstanding Alumnus Award. He received MBA degree in Marketing/Finance from University of Virginia, USA. Mr. Zulueta spent over three decades in various roles of increasing responsibility with Eli Lilly and Company, a global pharmaceutical company, including as Vice President of Global Marketing, President of Global Oncology and Critical Care Products and most recently, as President of International responsible for all geographies outside the United States and Canada. He also served as a corporate officer and member of Eli Lilly and Company’s Executive Committee. Mr. Zulueta previously served as member of the board of the European Federation of Pharmaceutical Industries and Associations and the U.S.-Japan Business Council.

In terms of the provisions of Section 149(7) of the Act and Regulation 25(8) of the Listing Regulations, all Independent Directors have submitted declarations that they meet the criteria of independence as provided in Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations and that there has been no change in the circumstances affecting their status as Independent Directors of the Company.

In the opinion of the Board, Mr. Kindler and Mr. Zulueta possess integrity, expertise and experience which shall benefit the Company. By virtue of their extensive experience and exposure in the global pharma industry, Mr. Kindler and Mr. Zulueta were exempted from appearing for the online proficiency selfassessment test conducted by the Indian Institute of Corporate Affairs.

During the year, seven Board meetings were held on May 9, 2023, August 3, 2023, September 11, 2023, November 8, 2023, December 7, 2023, February 7, 2024 and March 22, 2024. Particulars of meetings held and attendance thereat are mentioned in the Corporate Governance Report which forms part of the Integrated Report.

Board Evaluation

An annual performance evaluation of the Board, its committees and of individual directors was carried out by the Board after seeking inputs from all Directors, in terms of provisions of Section 134(3)(p) of the Act read with Rule 8(4) of the Companies (Accounts) Rules, 2014. In compliance with Regulation 17(10) of the Listing Regulations, the Board carried out performance evaluation of Independent Directors without the participation of the Director being evaluated. In a separate meeting of the Independent Directors, performance of Non-Independent Directors, the Board as a whole and Chairman of the Company was evaluated. Performance of Directors was evaluated based on monitoring corporate governance practices and introducing internationally accepted best practices to address business risks. Weightage was given to active involvement in long-term strategic planning and participation in Board/Committee

Corporate Overview Statutory Reports Financial Statements 203

meetings. The evaluation process focused on board dynamics, softer aspects, flow of information to the Board/Committees and effectiveness of Board Committees.

Performance of Committees was evaluated after considering various aspects such as composition of Committees, effectiveness of Committee meetings, frequency and adequacy of time allocated for discussions at meetings, attendance and participation, fulfillment of functions assigned to the Committees, etc. Performance of individual Directors was reviewed on the basis of criteria viz. qualifications, responsibilities shouldered, leadership qualities, analytical skills, knowledge, meaningful contributions at meetings, attendance, preparedness on the issues discussed. Parameters such as initiative, understanding the business environment/strategic issues, independent judgement were also taken into account.

Audit Committee

The Audit Committee comprises Dr. Punita KumarSinha (Chairperson), Mr. K. B. S. Anand, Independent Directors and Mr. Nilesh D. Gupta, Managing Director. Mr. R. V. Satam, Company Secretary, acts as the Secretary of the Committee. The functions performed by the Committee, particulars of meetings held and attendance thereat of the Members at the said meetings are mentioned in the Corporate Governance Report, which forms part of the Integrated Report. All recommendations made by the Audit Committee were accepted by the Board.

Nomination and Remuneration Policy

In Compliance with Section 178(3) of the Act and Regulation 19(4) of the Listing Regulations and as recommended by the Nomination and Remuneration Committee (‘NRC’), the Board formulated a Nomination and Remuneration Policy. The policy covers remuneration of directors, key managerial personnel and senior management and lays down philosophy, guiding principles and basis for recommending payment of their remuneration. It includes criteria for determining qualifications, positive attributes and independence of directors. In terms of the policy, the NRC evaluates balance of skills, knowledge and experience of independent directors and recommends them to the Board for appointment. The functions of the NRC are mentioned in the Corporate Governance Report, which forms part of the Integrated Report. In terms of proviso to Section 178(4) of the Act, the policy has been hosted on the Company’s website www.lupin. com, web link for which is https://www.lupin.com/ wp-content/uploads/2023/04/nomination-andremuneration-policy-LL-2023.pdf.

Related Party Transactions

No related party transactions entered into by the Company conflicted with the interest of the Company. All related party transactions entered by the Company during the financial year were in the ordinary course of business and on an arm’s length basis in accordance with the Act and Rules made

thereunder and the Listing Regulations. Material related party transactions were entered into by the Company only with its wholly owned subsidiaries. In compliance with the Act and Listing Regulations, the Audit Committee periodically reviews and approves related party transactions. As stipulated by Section 134(3)(h) of the Act read with Rule 8(2) of the Companies (Accounts) Rules, 2014, disclosure of particulars of contracts/arrangements entered into by the Company with related parties are given in Form No. AOC - 2, as Annexure ‘C’ to this Report. Apart from payment of sitting fees and commission, there is no pecuniary transaction with any Director, which had potential conflict of interest with the Company. As mandated by Regulation 46(2)(g) of the Listing Regulations, the policy on ‘Related party transactions and materiality of related party transactions’, as approved by the Board is hosted on the Company’s website www.lupin.com and web link for the same is https://www.lupin.com/wp-content/ uploads/2022/03/rpt-policy-03-02-2022.pdf.

Risk Management

In compliance with Regulation 21 of the Listing Regulations, Risk Management Committee comprises of Ms. Vinita Gupta, Chief Executive Officer, Mr. Nilesh D. Gupta, Managing Director, Mr. Ramesh Swaminathan, Executive Director, Global CFO & CRO and Head - Corporate Affairs, and Mr. Mark D. McDade and Mr. Jeffrey Kindler, Independent Directors. Roles, responsibilities and functions of the Committee have been defined by the Board. Terms of reference of the Committee, details of meetings held and attendance thereat are mentioned in the Corporate Governance Report, which forms part of the Integrated Report Mr. Ramesh Swaminathan is appointed as Chief Risk Officer who brings to the table a more nuanced understanding and blend of both ESG and business as also drives the ESG integration and adoption across the Company.

The Risk Management framework of the Company essentially comprises of two elements i.e. risk enabled performance management process adopting the value-based driver tree approach and risk management structure. The Company has established robust and structured mechanism for identifying, classifying, prioritising, reporting and mitigation of risks. It is applicable to all business units, functions, geographies and departments within the Company. The Risk Management framework compliments and does not replace other existing programs, such as those relating to emission, quality and compliance matters.

Particulars of loans/guarantees/investments/ securities

Pursuant to the provisions of Section 134(3)(g) of the Act, particulars of investments made, loans and guarantees given and securities provided under Section 186 of the Act are disclosed in the notes to the financial statements forming part of the Integrated Report.

204 LUPIN LIMITED | Integrated Report 2023-2024

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

In compliance with Section 134(3)(m) of the Act read with Rule 8(3) of the Companies (Accounts) Rules, 2014, information as regards conservation of energy, technology absorption and foreign exchange earnings and outgo is given in Annexure ‘D’ to this Report.

Human Resources

Employees being the most valuable assets, it is responsibility of the Company to provide support and care to all its employees. All policies, systems, technologies and business functions of the Company are aligned with the best industry standards. The Company’s people-first approach providing best-in-class work environment and advanced learning initiatives were the key drivers to provide a transparent, diverse and professional work environment to all its employees.

The Prevention of Sexual Harassment Policy provides a safe working environment and prohibits any form of sexual harassment against any employee. The policy goes beyond the legal ambit of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and covers all genders. It also addresses the requirements of prevention, prohibition and redressal of sexual harassment of women at the workplace as mandated by law.

The Company has constituted an Internal Complaints Committee, as stipulated by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Employees are regularly sensitized about matters pertaining to prevention of sexual harassment.

Employees Stock Options

As stipulated by Regulation 14(B) of SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 details of stock options as on March 31, 2024, are given in Annexure ‘E’ to this Report.

Vigil mechanism/Whistleblower policy

Over the years, your Company has strictly abided to well-accepted norms of ethical, lawful and moral conduct and has established a reputation for doing business with integrity. It has zero tolerance for any form of unethical behaviour. Pursuant to Sections 177(9) and (10) of the Act read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 22 of the Listing Regulations, the Company has in place a robust Vigil mechanism/ Whistleblower policy for directors and employees to report concerns, details of which are covered in the Corporate Governance Report which forms part of the Integrated Report. As mandated by Regulation 18(3) read with Schedule II Part C(18) of the Listing Regulations, the Audit Committee reviews the functioning of the Vigil mechanism/Whistleblower policy. No person has been denied access to the Chairperson of the Audit Committee. Directors and employees are at liberty to report unethical

practices and raise their concerns to the office of the Ombudsperson without any fear of retaliation or retribution. During the year, the Ombudsperson received 37 complaints, mostly of minor nature, which were investigated/examined by teams of strategic business unit heads/officers appointed by the Ombudsperson and are swiftly redressed. No complaints were pending at the end of year. The office of the Ombudsperson has official authority to receive, respond and investigate all offences within the scope of this policy.

The Vigil mechanism/Whistleblower policy is hosted on the Company’s website www.lupin.com and web link for the same is https://www.lupin.com/wp-content/ uploads/2022/02/Whistleblower-Policy-Website.pdf.

Particulars of employees remuneration

In compliance with the provisions of Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, particulars of remuneration of employees required to be disclosed, are given in Annexure ‘F’ to this Report. Statement containing particulars of remuneration of employees, for the year ended March 31, 2024, required to be furnished in terms of Rules 5(2) and 5(3) of the said Rules, forms part of this Report. The same shall be provided to Members upon written request pursuant to second proviso of Rule 5. As stipulated by Section 136(2) of the Act, particulars of remuneration of employees are available for inspection by Members at the Registered office of the Company during business hours on all working days up to the date of the ensuing AGM.

Auditors

The Company continues to have unqualified audit reports.

Members re-appointed B S R & Co. LLP, Chartered Accountants (Firm Reg. No. 101248W/W-100022), as auditors of the Company, at the 39[th] AGM held on August 11, 2021, for a second successive term of five years from the conclusion of the 39[th] AGM till the conclusion of the 44[th] AGM.

In terms of provisions of Section 141 of the Act, the Company has received a certificate from B S R & Co. LLP, certifying that their appointment is in compliance with the conditions prescribed by the said Section.

Internal Audit

Internal audit of the Company’s operations is carried out by in-house corporate internal audit team. The strength of the in-house corporate internal audit team is adequate to undertake audit function. Internal audit findings are discussed at the Audit Committee meetings and corrective actions taken. Local chartered accountant firms regularly conduct audits of Carrying & Forwarding Agents and Central Warehouses of the Company in India. Services of external auditors/specialist firms are availed for undertaking special audit assignments, as required.

Corporate Overview Statutory Reports Financial Statements 205

Cost Audit

Pursuant to the provisions of Section 148 of the Act read with the Companies (Cost Records and Audit) Amendment Rules, 2014 and as recommended by the Audit Committee, the Board of Directors, at its meeting held on May 9, 2023, appointed

Mr. S. D. Shenoy, practising cost accountant (FCMA No. 8318), as Cost Auditor, to conduct cost audit for the year ended March 31, 2024. Mr. Shenoy is a Cost Accountant as defined under Section 2(1)(b) of the Cost and Works Accountant Act, 1959 and holds a valid certificate of practice. Mr. Shenoy confirmed that he is free from the disqualifications specified in Section 141 read with Sections 139 and 148 of the Act and that his appointment meets the requirements prescribed in Sections 141(3)(g) and 148 of the Act. Mr. Shenoy also confirmed that he was independent, maintained an arm’s length relationship with the Company and that no orders or proceedings were pending against him relating to matters of professional conduct before the Institute of Cost Accountants of India or any competent court/ authority.

In compliance with Rule 14 of the Companies (Audit and Auditors) Rules, 2014, remuneration payable to Mr. Shenoy, for conducting cost audit for the year ended March 31, 2024, was ratified by Members, by passing an ordinary resolution at the 41[st] AGM held on August 3, 2023.

The Company has maintained cost records as specified by the Central Government under Section 148(1) of the Act.

In terms of Section 148(6) of the Act read with Rule 6(6) of the Companies (Cost Records and Audit) Rules, 2014, the cost audit report, in Form No. CRA-4 (in XBRL mode), for the year ended March 31, 2023, was filed with the Ministry of Corporate Affairs, on October 19, 2023, well within the prescribed time. The Company continues to have unqualified cost audit reports.

Secretarial Audit and Annual Secretarial Compliance Reports

The Board of Directors, at its meeting held on May 9, 2023, appointed Ms. Neena Bhatia, practising company secretary (FCS No. 9492 CP. No. 2661), to undertake Secretarial Audit and issue Annual

Secretarial Compliance Report for the year ended March 31, 2024.

As stipulated by Section 204 of the Act read with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board, at its meeting held on May 6, 2024, took on record, the Secretarial Audit Report (Form No. MR.3), for the year ended March 31, 2024, which is enclosed as Annexures ‘G’ and ‘G-1’ to this Report. The Company continues to have an unqualified Secretarial Audit Report.

Pursuant to Regulation 24A(2) of the Listing Regulations, the Board, at its meeting held on May 6, 2024, took on record the Annual Secretarial Compliance Report for the year ended March 31, 2024. The Report is in the format suggested by The Institute of Company Secretaries of India (‘ICSI’). It confirms that the Company has maintained proper records as mandated by various Rules and Regulations and that, no action has been taken against the Company or its material subsidiaries or promoters/directors by SEBI/ BSE/NSE. The Company shall disseminate the Report on the websites of BSE and NSE within the prescribed time.

Compliance with Secretarial Standards

The Company continues to comply with Secretarial Standards on Board Meetings (SS-1) and General Meetings (SS-2), issued by the ICSI.

Annual Return

Pursuant to the provisions of Sections 92(3) and 134(3)(a) of the Act, the Annual Return of the Company for the financial year ended March 31, 2024, has been hosted on the Company’s website www. lupin.com and web link for the same is https://www. lupin.com/investors/reports-filings/.

Acknowledgements

Your directors convey a sense of high appreciation to all employees of the Company for their commitment, hard work, continued dedication and significant contributions. They acknowledge the whole-hearted support and co-operation received from various departments of the Central/State governments, banks, financial institutions, business associates, local bodies/associations, analysts, stakeholders, suppliers, distributors, medical professionals and customers.

For and on behalf of the Board of Directors

Manju D. Gupta

Chairman (DIN: 00209461)

Mumbai, May 6, 2024

206 LUPIN LIMITED | Integrated Report 2023-2024

[Pursuant to the first proviso to Sub-Section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014] Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures Part ‘A’ : Subsidiaries (INR in million)	% of share holding	Lupin Pharmaceuticals, Inc., USA 30.06.2003 N.A. US $ and Exchange Rate INR 83.41 for 1 US $ [Refer Note Nos. 1 and 8] 9,531.8 63,569.6 54,037.8 Nil 66,206.5 542.9 580.7 (37.8) Nil 100% Pharma Dynamics (Proprietary) Limited, South Africa 01.03.2008 N.A. ZAR and Exchange Rate INR 4.41 for ZAR 1 0.5 4,634.4 5,843.6 1,208.7 42.6 6,385.7 647.5 173.7 473.8 Nil 100% Hormosan Pharma GmbH, Germany 25.07.2008 N.A. Euro and Exchange Rate INR 89.7 for 1 Euro 8.1 2,563.7 4,118.6 1,546.8 Nil 3,933.8 650.6 209.5 441.1 Nil 100% Multicare Pharmaceuticals Philippines, Inc., Philippines 26.03.2009 N.A. PHP and Exchange Rate INR 1.48 for PHP 1 26.9 1,686.8 3,804.8 2,091.1 Nil 3,482.1 615.9 173.9 442.0 Nil 51% Generic Health Pty Limited, Australia 27.09.2010 N.A. AU $ and Exchange Rate is INR 54.12 for 1 AU $ 1,344.3 2,201.1 4,628.9 1,083.5 Nil 3,968.6 808.8 181.5 627.3 Nil 100% Lupin Atlantis Holdings SA, Switzerland 05.06.2007 N.A. US $ and Exchange Rate INR 83.41 for 1 US $ 115.9 41,434.4 45,144.7 3,594.4 Nil 5,728.4 20.1 80.8 (60.7) Nil 100% Lupin Healthcare (UK) Limited, UK 05.06.2009 N.A. GBP and Exchange Rate INR 105.21 for 1 GBP 279.7 (1,069.3) 2,149.8 2,939.4 Nil 2,561.9 42.0 8.6 33.4 Nil 100% Lupin Australia Pty Limited, Australia 01.12.2004 N.A. AU $ and Exchange Rate is INR 54.12 for 1 AU $ 33.3 (29.5) 14.6 10.8 Nil Nil (0.4) 0.0 (0.4) Nil 100% Lupin Pharma Canada Limited, Canada 18.06.2009 N.A. CAD and Exchange Rate INR 61.551 for 1 CAD 155.5 167.7 3,090.8 2,767.6 Nil 2,956.9 (58.3) (15.9) (42.4) Nil 100% Lupin Mexico S.A. de C.V., Mexico 23.08.2010 N.A. MXN $ and Exchange Rate INR 5.02 for MXN $ 1 52.2 (43.1) 9.2 0.1 Nil Nil 0.6 Nil 0.6 Nil 100% Bellwether Pharma Pty Limited, Australia 27.09.2010 N.A. AU $ and Exchange Rate is INR 54.12 for 1 AU $ [Refer Note No. 4] Nil Nil Nil Nil Nil Nil Nil Nil Nil 100% Lupin Philippines Inc., Philippines 20.12.2010 N.A. PHP and Exchange Rate INR 1.48 for PHP 1 59.9 (71.7) 1,161.5 1,173.3 Nil 1,173.6 (135.6) (29.1) (106.5) Nil 100% Lupin Diagnostics Limited, India 17.03.2011 N.A. INR 526.2 (1,531.0) 1,404.9 2,409.7 Nil 666.9 (978.5) 9.1 (987.6) Nil 100% Generic Health SDN. BHD., Malaysia 18.05.2011 N.A. RM and Exchange Rate INR 17.62 for RM 1 10.5 (9.7) 0.9 0.1 Nil Nil (0.7) Nil (0.7) Nil 100% Lupin Inc., USA 27.06.2013 N.A. US $ and Exchange Rate INR 83.41 for 1 US $ 67,938.9 (90,428.5) 27,293.8 49,783.4 Nil 39,320.8 4,301.0 (42.0) 4,343.0 Nil 100% Nanomi B.V., the Netherlands 30.03.2007 N.A. US $ and Exchange Rate INR 83.41 for 1 US $ 23,632.8 55,712.9 82,357.4 3,011.7 Nil Nil (1,909.2) 22.7 (1,931.9) Nil 100% Laboratorios Grin, S.A. de C.V., Mexico 01.10.2014 N.A. MXN $ and Exchange Rate INR 5.02 for MXN $ 1 854.2 2,569.2 5,362.2 1,938.8 Nil 2,745.2 (24.8) 7.2 (32.0) Nil 100% Medquimica Industria Farmaceutica LTDA, Brazil 24.06.2015 N.A. BRL and Exchange Rate INR 16.63 for BRL 1 5,462.5 [Refer Note No. 5] (6,700.3) 6,078.7 7,316.5 Nil 4,229.4 (1,442.3) (27.1) (1,415.2) Nil 100% Novel Laboratories, Inc., USA 08.03.2016 N.A. US $ and Exchange Rate INR 83.41 for 1 US $ [Refer Note No. 9] 6,079.7 7,559.2 1,479.5 Nil 6,767.3 (218.0) (19.6) (198.4) Nil 100%
	Proposed dividend
	Profit/ (Loss) after taxation
	Provision for taxation
	Profit/ (Loss) before taxation
	**Turnover **
	Investments (Other than in subsidiaries)
	Total Liabilities
	Total Assets
	Reserves and Surplus
	Share Capital
	Reporting currency and exchange rate as on the last date of the relevant financial year in the case of foreign subsidiaries
	Reporting period for the subsidiary concerned, if different from the holding company's reporting period
	Date since when subsidiary was acquired/ incorporated
	Name of the Subsidiary

Corporate Overview Statutory Reports Financial Statements 207

(INR in million)	% of share holding	100% 100% 100% 100% 99.3% 100% 100% 100% 100% 100% 100% 100% 100%	Notes: 1) The shares in Lupin Pharmaceuticals, Inc., USA, are held by Lupin Inc., USA (97%) and Lupin Limited (3%). 2) The entire shareholdings of Pharma Dynamics Pty Limited, South Africa, Lupin Inc., USA, Hormosan Pharma GmbH, Germany, Generic Health Pty Limited, Australia, Lupin Mexico S.A. de C.V., Mexico, Lupin Philippines Inc., Philippines and Generic Health SDN. BHD., Malaysia, are held by Nanomi B.V., the Netherlands. 3) The entire shareholdings of Lupin Healthcare (UK) Limited, UK, Lupin Pharma Canada Limited, Canada, Laboratorios Grin S.A. de C.V., Mexico, Lupin Europe GmbH, Germany and Lymed S.A.S., France are held by Lupin Atlantis Holdings SA, Switzerland. The entire shareholding of Medisol S.A.S., France directly/indirectly is held by Lupin Atlantis Holdings SA, Switzerland through Lymed S.A.S. 4) The entire shareholding of Southern Cross Pharma Pty Limited, Australia is held by Generic Health Pty Limited, Australia. Bellwether Pharma Pty Limited, Australia, wholly owned by Generic Health Pty Limited, Australia was wound up on June 11, 2023. 5) Lupin Atlantis Holdings SA, Switzerland, holds 73.88% and Nanomi B.V., the Netherlands, holds 26.12% shares in Medquimica Industria Farmaceutica LTDA, Brazil. 6) The entire shareholdings of Novel Laboratories, Inc., USA, Lupin Research Inc., USA and Lupin Management, Inc., USA are held by Lupin Inc., USA. 7) Lupin Mexico S.A. de C.V., Mexico, Generic Health SDN. BHD., Malaysia, Lupin Biologics Limited, India, Avenue Coral Springs LLC, USA and Lupin Oncology Inc., USA have not yet commenced commercial operations. 8) Lupin Pharmaceuticals, Inc., USA, has Share Capital of US $ 1 i.e. INR 62/-.
	Proposed dividend	Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
	Profit/ (Loss) after taxation	334.7 40.1 (9.7) (0.1) (818.7) (0.1) Nil 365.7 (434.4) (73.7) (0.4) (659.8) (0.1)
	Provision for taxation	(106.1) 42.4 Nil Nil Nil Nil Nil 159.7 (6.9) 13.5 Nil 270.0 Nil
	Profit/ (Loss) before taxation	228.6 82.5 (9.7) (0.1) (818.7) (0.1) Nil 525.4 (441.3) (60.2) (0.4) (389.8) (0.1)
	**Turnover **	3,028.8 Nil 75.3 Nil Nil Nil Nil 2,191.2 4.5 370.8 Nil 1,210.2 Nil
	Investments (Other than in subsidiaries)	Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 1.0 Nil
	Total Liabilities	2,300.5 410.9 94.0 [Refer Note No. 11] 3,293.4 Nil Nil 722.1 117.4 82.2 0.4 1,658.6 0.1
	Total Assets	4,009.5 580.5 162.4 0.2 758.6 0.1 Nil 2,242.6 674.2 1,438.7 3.5 9,085.8 1.0
	Reserves and Surplus	1,709.0 169.6 66.4 (1.4) (3,670.6) (0.9) Nil 1,520.5 (8.5) 1,351.2 3.0 7,332.2 (0.1)
	Share Capital	[Refer Note No. 10] Nil 2.0 1.5 1,135.8 [Refer Note No. 12] [Refer Note No. 14] [Refer Note Nos. 4 and 13] 565.3 5.3 0.1 95.0 1.0
	Reporting currency and exchange rate as on the last date of the relevant financial year in the case of foreign subsidiaries	US $ and Exchange Rate INR 83.41 for 1 US $ US $ and Exchange Rate INR 83.41 for 1 US $ Euro and Exchange Rate INR 89.7 for 1 Euro INR US $ and Exchange Rate INR 83.41 for 1 US $ INR US $ and Exchange Rate INR 83.41 for 1 US $ AU $ and Exchange Rate is INR 54.12 for 1 AU $ INR Euro and Exchange Rate INR 89.7 for 1 Euro Euro and Exchange Rate INR 89.7 for 1 Euro INR INR
	Reporting period for the subsidiary concerned, if different from the holding company's reporting period	N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
	Date since when subsidiary was acquired/ incorporated	08.03.2016 10.10.2017 05.02.2018 28.01.2021 15.03.2021 28.06.2016 29.11.2021 03.02.2022 21.05.2021 01.09.2023 01.09.2023 24.07.2023 17.07.2023
	Name of the Subsidiary	Lupin Research Inc., USA Lupin Management, Inc., USA Lupin Europe GmbH, Germany Lupin Biologics Limited, India Lupin Oncology Inc., USA Lupin Foundation, India Avenue Coral Springs LLC, USA Southern Cross Pharma Pty Limited, Australia Lupin Digital Health Limited, India Medisol S.A.S., France Lymed S.A.S., France Lupin Manufacturing Solutions Limited, India Lupin Life Sciences Limited, India (formerly known as Lupin Atharv Ability Limited)

208 LUPIN LIMITED | Integrated Report 2023-2024

• 9) Novel Laboratories, Inc., USA, has Share Capital of US $ 1 i.e. INR 67/-.

• 10) Lupin Research Inc., USA, has Share Capital of US $ 1 i.e. INR 67/-.

• 11) Total liabilities in Lupin Biologics Limited, India, are INR 29,500/-.

• 12) Lupin Foundation, India has a corpus fund of INR 1.1 million.

• 13) Southern Cross Pharma Pty Limited, Australia, has Share Capital of AU $ 100 i.e. INR 5,334/-.

• 14) The entire shareholding of Avenue Coral Springs LLC, USA is held by Lupin Research Inc., USA.

• 15) Figures in brackets denote negative amounts.

For and on behalf of the Board of Directors

Manju D. Gupta Vinita Gupta Nilesh D. Gupta Ramesh Swaminathan R. V. Satam Chairman Chief Executive Officer Managing Director Executive Director, Global Company CFO & CRO and Head - Secretary Corporate Affairs (DIN: 00209461) (DIN: 00058631) (DIN: 01734642) (DIN: 01833346) (ACS-11973)

Mumbai, May 6, 2024

Part ‘B’: Joint Ventures

Statement pursuant to Section 129(3) of the Companies Act, 2013, related to Jointly Controlled Entity

==> picture [486 x 192] intentionally omitted <==

----- Start of picture text -----

(INR in million)
Name of the Jointly Controlled Entity YL Biologics Limited, Japan
1) Latest Audited Balance Sheet Date March 31, 2024
2) Date on which Jointly Controlled Entity was acquired April 23, 2014
3) Shares of the Jointly Controlled Entity held by the Company on the year end
Number 450 Common Shares of JPY Nil
Amount of investment in the Jointly Controlled Entity 369.1
Extent of Holding % 45%
4) Description of how there is significant influence N.A.
5) Reason why the Jointly Controlled Entity is not consolidated N.A.
6) Networth attributable to Shareholding as per latest audited Balance Sheet 369.1
7) Profit/Loss for the year
-
(i) Considered in Consolidation (after inter company adjustment)
-
(ii) Not Considered in Consolidation
----- End of picture text -----*

• Shares are held by Lupin Atlantis Holdings SA, Switzerland, wholly owned subsidiary of the Company.

For and on behalf of the Board of Directors

Manju D. Gupta Vinita Gupta Nilesh D. Gupta Chairman Chief Executive Officer Managing Director (DIN: 00209461) (DIN: 00058631) (DIN: 01734642)

Ramesh Swaminathan R. V. Satam Executive Director, Global Company CFO & CRO and Head - Secretary Corporate Affairs (DIN: 01833346) (ACS-11973)

Mumbai, May 6, 2024

Corporate Overview Statutory Reports Financial Statements 209

ANNEXURE ‘B’ TO THE DIRECTORS’ REPORT

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (‘CSR’) ACTIVITIES PURSUANT TO RULE 8 OF THE COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLICY) RULES, 2014.

1. Brief outline on CSR policy of the Company:

The CSR Policy aims at:

• Building and replicating sustainable, evolving and dynamic models of social, economic, infrastructure and natural resource development models of macro, micro and mini scales through CSR programme in partnership with government bodies and other stakeholders at national, regional, district, block and village level.

• Providing services and solutions to address social issues with highest social priority for the poor, marginalized and under-privileged in line with the business philosophy of providing affordable medicines for most prevalent diseases.

• Planning and executing programs that would benefit the communities in and around various work-sites, plants and other adopted areas with low HDI - scores in order to enhance the quality of life of the community in general and the poor in particular.

• Building, nurturing and reinforcing identity of the Company as a socially and ethically responsible corporate entity through its CSR initiatives for the benefit of diverse stakeholders in the society.

• Carrying out activities that would create increased happiness and empowerment of the stakeholders.

• Acting as a catalyst, integrating diverse resources to make things happen at the field level, through direct intervention and social investment, to address the immediate needs of the poor as well as long-term development concerns.

• Responding to natural and anthropogenic disasters, calamities at global and national levels as well as in the areas of operations to provide relief, reconstruction and rehabilitation support.

• Setting up deeper sustainable institutional projects for the long-term welfare of the nation.

2. Composition of the CSR Committee:

Sl.	Name of Director	Designation/Nature of Directorship	Number of meetings of CSR	Number of meetings of CSR
No.			Committee held during the	Committee attended during the
			year	year
1.	Mrs. Manju D. Gupta	Chairman, Non-Executive Director	1	1
2. 3. 4.	Ms. Vinita Gupta Mr. Nilesh D. Gupta Mr. K. B. S. Anand	Member, Chief Executive Officer Member, Managing Director Member, Independent Director	1 1 1	1 1 1

3. Provide the web-links where composition of the CSR Committee, CSR Policy and CSR Projects approved by the Board are disclosed on the website of the Company:

Composition of the CSR Committee, CSR Policy and CSR Projects have been hosted on the Company’s website www. lupin.com and web links for the same are https://www.lupin.com/investors/committees-of-the-board/, https://www. lupin.com/wp-content/uploads/2023/04/CSR-POLICY-2023.pdf and https://www.lupinfoundation.in/ respectively.

4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3) of rule 8, if applicable:

As none of the CSR projects undertaken by the Company had outlays of ₹ one crore or more, there was no need to undertake impact assessment study.

5. (a) Average net profit of the Company as per Section 135(5):

The average standalone net profit of the Company for the last three financial years calculated in accordance with the provisions of Section 198 of the Companies Act, 2013 was ₹ 12,632.2 million.

• (b) Two percent of the average net profit of the Company as per Section 135(5): ₹ 252.6 million.

• (c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: Nil

• (d) Amount required to be set off for the financial year, if any: Nil

• (e) Total CSR obligation for the financial year (5b + 5c – 5d): ₹ 252.6 million

6. (a) Amount spent on CSR projects (both Ongoing Project and other than Ongoing Project): ₹ 244.8 million (b) Amount spent on Administrative Overheads: ₹ 11.2 million

• (c) Amount spent on Impact Assessment, if applicable: Nil

• (d) Total amount spent for the financial year (6a+6b+6c): ₹ 256.0 million

• (e) CSR amount spent or unspent for the financial year:

	Amount Unspent (₹)
Total amount spent during the Financial Year	Total amount transferred to unspent CSR account as per Section 135(6) Amount transferred to any fund specified under Schedule VII as per second proviso to Section 135(5)
	Amount Date of transfer Name of the Fund Amount Date of transfer
₹ 256.0 million	Nil N.A. N.A. Nil N.A.

210 LUPIN LIMITED | Integrated Report 2023-2024

(f) Excess amount for set off, if any:

Sl.	Particular	Amount (₹ million)
No.
i.	Two percent of average net profit of the Company as per Section 135(5)	252.6
ii. iii. iv.	Total amount spent for the financial year Excess amount spent for the financial year [(ii)-(i)]* Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any	256.0 3.4 -
v.	Amount available for set off in succeeding financial years [(iii)-(iv)]	3.4

*Prepaid expenses of ₹ 3.4 million is accounted in Company’s accounts.

7. Details of Unspent CSR amount for the preceding three financial years:

Sl. No.	Preceding Financial Year(s) (FY 2020-21, FY 2021-22 and FY 2022-23)	Amount transferred to Unspent CSR account under Section 135 (6) (₹)	Balance Amount in Unspent CSR Account under Section 135(6) (₹)	Amount spent in the reporting Financial Year (₹)	Amount transferred to any fund specified under Schedule VII as per second proviso to Section 135(5), if any	Amount transferred to any fund specified under Schedule VII as per second proviso to Section 135(5), if any	Amount remaining to be spent in succeeding financial years (₹)	Deficiency, if any
					Amount (₹)	Date of transfer
N.A.

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year: No

If Yes, enter the number of Capital assets created/acquired: N.A.

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:No If Yes, enter the number of Capital assets created/acquired: N.A. Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:	8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:No If Yes, enter the number of Capital assets created/acquired: N.A. Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:	8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:No If Yes, enter the number of Capital assets created/acquired: N.A. Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:	8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:No If Yes, enter the number of Capital assets created/acquired: N.A. Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:	8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:No If Yes, enter the number of Capital assets created/acquired: N.A. Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:	8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:No If Yes, enter the number of Capital assets created/acquired: N.A. Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:	8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:No If Yes, enter the number of Capital assets created/acquired: N.A. Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:	8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:No If Yes, enter the number of Capital assets created/acquired: N.A. Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:
1. 2. 3. 4. 5. 6.
Sl. No.	Short particulars of the property or asset(s) [including complete address and location of the property]	Pin code of the property or asset(s)	Date of creation	Amount of CSR spent	Details of entity/Authority/beneficiary of the registered owner
					CSR Registration Number, if applicable	Name	Registered address
N.A.

9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per Section 135(5): N.A.

For and on behalf of the Board of Directors

Manju D. Gupta Nilesh D. Gupta Chairman Managing Director (DIN: 00209461) (DIN: 01734642)

Mumbai, May 6, 2024

Corporate Overview Statutory Reports Financial Statements 211

ANNEXURE ‘C’ TO THE DIRECTORS’ REPORT

FORM NO. AOC - 2

Disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in Section 188(1) of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto.

[Pursuant to Section 134(3)(h) of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014]

1. All contracts/arrangements/transactions entered into by the Company with related parties during the year ended March 31, 2024, were at arm’s length basis.

2. Details of material contracts or arrangement or transactions (i.e. exceeding ten percent of the annual consolidated turnover as per the last audited financial statements) at arm’s length basis: -

Name of the related party and nature of relationship	Nature of contracts/ arrangements/	Duration of the contracts/ arrangements/	Salient terms of the contracts/ arrangements/	Dates of approval by the Audit Committee/Board	Amount paid as advances
	transactions	transactions	transactions
			including the
			value
Lupin	Sale of Goods	Continuous	Based on	August 2, 2023/	Nil
Pharmaceuticals, Inc.,			Transfer Pricing	August 3 2023;
USA (wholly owned subsidiary)			Guidelines – ₹ 26,590.1 million	November 8, 2023/ November 8, 2023; February 7, 2024/
				February 7, 2024; and May 6, 2024/
				May 6, 2024.

For and on behalf of the Board of Directors

Manju D. Gupta Chairman (DIN: 00209461)

Mumbai, May 6, 2024

212 LUPIN LIMITED | Integrated Report 2023-2024

ANNEXURE ‘D’ TO THE DIRECTORS’ REPORT

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo pursuant to the provisions of Section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014.

• (A) Conservation of energy:

• (i) steps taken or impact on conservation of energy;

  • (a) Installed ATCS for heat pumps.

  • (b) Installed EC fans in AHU units.

  • (c) Installed screw press sludge dryer.

  • (d) Replaced chilled water system from primary to secondary.

  • (e) Installed IFC in compressed air network.

  • (f) Installed electronically commuted drive for continuous running AHUs.

  • (g) Installed Briquette boiler.

  • (h) Replaced conventional blowers with energy efficient ones.

  • (i) Installed centrifugal pumps along with Variable Frequency Drive (‘VFD’).

  • (j) Installed VFD for cooling tower pumps, chilled water and heat pumps.

  • (k) Installed automatic tube cleaning system.

  • (l) Optimised steam generation and distribution system by using blowdown heat recovery system.

  • (m) Installed continuous flow reactors.

  • (n) Installed efficient LED lights.

  • (o) Installed steam operated pumping traps.

  • (p) Installed efficient heat pumps.

• (ii) steps taken for utilising alternate sources of energy;

  • (a) Installed Briquette boiler.

  • (b) Installed solar roof-top.

  • (c) Installed biomass boiler.

  • (d) Commissioned agro boiler, which uses agro fuel for steam generation.

  • (e) Open access purchased for renewable wind power energy.

• (iii) capital investment on energy conservation equipments: - ₹ 217 million.

• (B) Technology absorption:

• (i) efforts made towards technology absorption;

Particulars are given in the Management Discussion and Analysis which forms part of the Integrated Report.

• (ii) benefits derived like product improvement, cost reduction, product development or import substitution; Particulars are given in the Management Discussion and Analysis which forms part of the Integrated Report.

• (iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year);

• (a) details of technology imported;

No specific technology was imported during FY 2023-24. The Company developed technology through efforts of its in-house Research & Development.

• (b) year of import;

N.A.

• (c) whether the technology been fully absorbed;

N.A.

• (d) If not fully absorbed, areas where absorption has not taken place, and the reasons, therefore.

N.A.

Corporate Overview Statutory Reports Financial Statements 213

(iv) expenditure incurred on Research & Development (Consolidated);

(a)	Capital				₹ 598.1 million
(b)	Recurring (excluding depreciation of ₹	1025.0	million)		₹ 14,239.2 million
				Total:	₹ 14,837.3 million

(C) Foreign exchange earnings and outgo:

Foreign exchange earned in terms of actual inflows and foreign exchange outgo in terms of actual outflows during the year: -

uring the year: -
Foreign Exchange earned in terms of actual inflows	₹ 74,341.1 million
Foreign Exchange outgo in terms of actual outflows	₹ 22,942.6 million

For and on behalf of the Board of Directors

Manju D. Gupta

Chairman (DIN: 00209461)

Mumbai, May 6, 2024

214 LUPIN LIMITED | Integrated Report 2023-2024

ANNEXURE ‘E’ TO THE DIRECTORS’ REPORT

Disclosure envisaged in terms of Regulation 14(B) of Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (SEBI SBEBSE Regulations), details of diluted EPS on issue of shares pursuant to all the schemes as on March 31, 2024, were as under: -

DESCRIPTION	DETAILS
Diluted earnings per share (EPS) (Consolidated) on issue of shares pursuant to all the schemes covered under the Regulations, calculated in accordance with Accounting Standard IND (AS) 33 ‘Earnings per share’.	Diluted earnings per share (consolidated) as on 31.03.2024:₹ 41.87 No. of Options outstanding as on 31.03.2024:2350054Shares

DETAILS OF STOCK OPTIONS AS ON MARCH 31, 2024

The disclosure envisaged in terms of Regulation 14(C) of SEBI SBEBSE Regulations, particulars of Employee Stock Option Scheme (ESOS) as on March 31, 2024, were as under: -

(i) Description of each ESOS existed during 01.04.2023 and 31.03.2024:

Sr.	Name of the	Date of	Total no.	Vesting	Exercise price	Maximum	Source of	Variation
No.	Plan	shareholders’	of options	Requirements	or pricing formula	term of	shares	In terms of
		approval	approved			options		options
						granted
1.	Lupin	05.12.2003	3957310	Options being vested in	Exercise Price is	10 years from	Primary	No
	Employees			phased manner after	the market price	the date of		Variation
	Stock Option			completion of minimum	or such other price	grant
	Plan 2003			one year from the date	as determined by
	(ESOP 2003)			of grant	the Nomination
					and Remuneration
					Committee
2. 3. 4. 5. 6.	Lupin Employees Stock Option Plan 2005 (ESOP 2005) Lupin Employees Stock Option Plan 2011 (ESOP 2011) Lupin Employees Stock Option Plan 2014 (ESOP 2014) Lupin Subsidiary Companies Employees Stock Option Plan 2005 (SESOP 2005) Lupin Subsidiary Companies Employees Stock Option Plan 2011 (SESOP 2011)	28.07.2005 10.05.2011 21.10.2014 & 07.08.2019 28.07.2005 10.05.2011	3211290 3600000 2975000 802820 900000	Options being vested in phased manner after completion of minimum one year from the date of grant Options being vested in phased manner after completion of minimum one year from the date of grant Options being vested in phased manner after completion of minimum one year from the date of grant Options being vested in phased manner after completion of minimum one year from the date of grant Options being vested in phased manner after completion of minimum one year from the date of grant	Exercise Price is the market price or such other price as determined by the Nomination and Remuneration Committee Exercise Price is the market price or such other price as determined by the Nomination and Remuneration Committee Exercise Price is the face value or such other price as determined by the Nomination and Remuneration Committee Exercise Price is the market price or such other price as determined by the Nomination and Remuneration Committee Exercise Price is the face value or such other price as determined by the Nomination and Remuneration Committee	10 years from the date of grant 10 years from the date of grant 10 years from the date of grant 10 years from the date of grant 10 years from the date of grant	Primary Primary Primary Primary Primary	No Variation No Variation No Variation No Variation No Variation
7.	Lupin	21.10.2014	1525000	Options being vested in	Exercise Price is the face	10 years from	Primary	No
	Subsidiary	&		phased manner after	value or such other	the date of		Variation
	Companies	07.08.2019		completion of minimum	price as determined	grant
	Employees			one year from the date	by the Nomination
	Stock Option			of grant	and Remuneration
	Plan 2014				Committee
	(SESOP 2014)

Note: One option is convertible into one equity share of the face value of ₹ 2/- each.

Corporate Overview Statutory Reports Financial Statements 215

No.	Description	Details
(ii)	Method used to account for ESOS	Fair value method
(iii)	Where the Company opts for expensing of the options using the intrinsic value of the options, the difference between the employee compensation cost so computed and the employee compensation cost that shall have been recognized if it had used the fair value of the options shall be disclosed. The impact of this difference on profits and on EPS of the Company shall also be disclosed.	Not applicable

(iv) Option movements during the year for each ESOS:

==> picture [486 x 551] intentionally omitted <==

----- Start of picture text -----

No. Particulars Details
1. Number of options outstanding at the beginning of the period Plan No. of options
ESOP 2003 78705
ESOP 2005 8350
ESOP 2011 745749
ESOP 2014 791828
SESOP 2011 469729
SESOP 2014 1167970
Total 3262331
2. Number of Options granted during the year Plan No. of options
ESOP 2011 100000
SESOP 2011 17545
SESOP 2014 165872
Total 283417
3. Number of options forfeited/lapsed during the year Lapsed on account of resignation of employees:
Plan No. of options
ESOP 2003 5590
ESOP 2005 750
ESOP 2011 233198
ESOP 2014 17280
SESOP 2011 63357
SESOP 2014 177946
Total 498121
4. Number of options vested during the year Plan No. of options
ESOP 2011 57891
ESOP 2014 216875
SESOP 2011 59800
SESOP 2014 194644
Total 529210
5. Number of options exercised during the year Plan No. of options
ESOP 2003 11376
ESOP 2005 650
ESOP 2011 162280
ESOP 2014 263495
SESOP 2011 62344
SESOP 2014 197428
Total 697573
6. Number of shares arising as a result of exercise of options Plan No. of options
ESOP 2003 11376
ESOP 2005 650
ESOP 2011 162280
ESOP 2014 263495
SESOP 2011 62344
SESOP 2014 197428
Total 697573
7. Money realised by exercise of options (INR), if scheme is implemented directly Plan Amount (₹)
by the company ESOP 2003 13250764.80
ESOP 2005 757120.00
ESOP 2011 118885991.35
ESOP 2014 526990.00
SESOP 2011 10802130.30
SESOP 2014 394856.00
Total 144617852.45
8. Loan repaid by the Trust during the year from exercise price received Not Applicable
----- End of picture text -----

216 LUPIN LIMITED | Integrated Report 2023-2024

No. Particulars	Details
9. Number of options outstanding at the end of the year	Plan No. of options
	ESOP 2003 61739
	ESOP 2005 6950
	ESOP 2011 450271
	ESOP 2014 511053
	SESOP 2011 361573
	SESOP 2014 958468
	Total 2350054
10. Number of options exercisable at the end of the year	Plan No. of options
	ESOP 2003 61739 ESOP 2005 6950 ESOP 2011 227435 ESOP 2014 366806 SESOP 2011 238349 SESOP 2014 364289
	Total 1265568

(v) Weighted average exercise prices and weighted average fair values of options

Weighted average exercise prices and	(i)	Weighted average exercise price of options granted during the year whose:	Weighted average exercise price of options granted during the year whose:	-
weighted average fair values of options shall be disclosed separately for options whose exercise price either equals or exceeds or is		a. b.	Exercise price equals market price: Exercise price is greater than market price:	N.A. N.A.
less than the market price of the stock		c.	Exercise price is less than the market price:	2.00
	(ii)	Weighted average fair value of options granted during the year whose: -
		a.	Exercise price equals market price:	N.A.
		b.	Exercise price is greater than market price:	N.A.
		c.	Exercise price is less than the market price:	1,173.03

(vi) Employee-wise details of options granted to:

==> picture [484 x 333] intentionally omitted <==

----- Start of picture text -----

a. Senior Managerial Personnel (Chairman,
Vice Chairman, CEO and Managing Nil
Director)
b. Employees to whom options granted i) Mr. Ramesh Swaminathan was granted 10000 options under ESOP 2011 at an
amounting to 5% or more, of the total exercise price of ₹ 2.00.
options granted during the year. ii) Dr. Rajender Kamboj was granted 15000 options under ESOP 2011 at an exercise
price of ₹ 2.00.
iii) Mr. Naresh Kumar Gupta was granted 10000 options under ESOP 2011 at an exercise
price of ₹ 2.00.
iv) Mr. Rajeev Sibal was granted 15000 options under ESOP 2011 at an exercise price of
₹ 2.00.
v) Dr. Cyrus Karkaria was granted 15000 options under ESOP 2011 at an exercise price
of ₹ 2.00.
vi) Mr. Sunil Makharia was granted 10000 options under ESOP 2011 at an exercise price
of ₹ 2.00.
vii) Mr. Yashwant Mahadik was granted 10000 options under ESOP 2011 at an exercise
price of ₹ 2.00.
viii) Mr. Rajendra Baburao Chunodkar was granted 15000 options under ESOP 2011 at an
exercise price of ₹ 2.00.
ix) Mr. Thierry Volle was granted 15000 options under SESOP 2011 at an exercise price
of ₹ 2.00.
x) Mr. Shahin Fesharaki was granted 84918 options under SESOP 2014 at an exercise
price of ₹ 2.00.
xi) Dr. Sofia Mumtaz was granted 15000 options under SESOP 2014 at an exercise price
of ₹ 2.00.
xii) Dr. Fabrice Egros was granted 10000 options under SESOP 2014 at an exercise price
of ₹ 2.00.
xiii) Mr. Johnny Mikell was granted 10000 options under SESOP 2014 at an exercise price
of ₹ 2.00.
xiv) Mr. Spiro T. Gavaris was granted 23777 options under SESOP 2014 at an exercise
price of ₹ 2.00.
c. Employees to whom options equal to or
exceeding 1% of the issued capital have Nil
been granted during the year.
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 217

(vii) Description of the method and significant assumptions used during the year to estimate the fair value of the options, including the following information:

• Fair value calculated by using Black-Scholes option pricing model.

• Share price: The closing price on NSE as on the date of grant has been considered for valuing the options granted.

• Exercise Price: Exercise Price is the price payable by the employee for exercising the ESOP granted in pursuance of the terms of the Plan.

• Expected Volatility: The historical volatility of the stock till the date of grant has been considered to calculate the fair value of the options.

• Expected Option Life: Expected Life of option is the period for which the Company expects the options to be live. The minimum life of a stock option is the minimum period before which the options cannot be exercised and the maximum life is the period after which the options cannot be exercised.

• Expected dividends: Expected dividend yield has been calculated as an average of dividend yields for five to six years preceding the date of the grant.

• Risk-free interest rate: The risk-free interest rate on the date of grant considered for the calculation is the interest rate applicable for a maturity equal to the expected life of the options based on the zero-coupon yield curve for Government Securities.

Variables	Weighted Average Information
	1 2 3 4 5 6
Plan	SESOP 2014 SESOP 2011 SESOP 2014 ESOP 2011 SESOP 2011 SESOP 2014
Grant date	04.05.2023 28.07.2023 28.07.2023 12.12.2023 12.12.2023 12.12.2023
Risk free rate (%)	6.60 6.80 6.70 6.90 6.90 6.90
Expected life (years)	2.60 6.25 2.60 6.25 6.25 2.60
Volatility (%)	29.85 30.83 29.48 30.38 30.38 28.13
Dividend yield (%)	0.60 0.60 0.60 0.60 0.60 0.60
Stock price (NSE closing rate) ₹	709.90 974.00 974.00 1240.20 1240.20 1240.20
Option Fair Value ₹	697.80 938.13 957.93 1193.28 1193.28 1219.45

DETAILS OF STOCK APPRECIATION RIGHTS AS ON MARCH 31, 2024

The disclosure envisaged in terms of Regulation 14(E) of SEBI SBEBSE Regulations: -

(i) A description of each SAR Scheme existed during 01.04.2023 and 31.03.2024: No Scheme existed.

DETAILS RELATED TO TRUST AS ON MARCH 31, 2024

The disclosure envisaged in terms of Regulation 14(G) of SEBI SBEBSE Regulations: -

• (i) General information of all schemes: No Scheme Existed.

• (ii) Brief details of transactions in shares by the Trust: Not Applicable.

• (iii) In case of secondary acquisition of shares by the Trust: Not Applicable

For and on behalf of the Board of Directors

Manju D. Gupta Chairman (DIN: 00209461)

Mumbai, May 6, 2024

218 LUPIN LIMITED | Integrated Report 2023-2024

ANNEXURE ‘F’ TO THE DIRECTORS’ REPORT

STATEMENT OF PARTICULARS AS PER RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014.

Sl.	Name of the Director/Key Managerial Personnel and Designation	% increase in the	Ratio of the remuneration
No.		remuneration for	of each Director to the
		the year ended	median remuneration of
		March 31, 2024	the employees
1.	Mrs. Manju D. Gupta,	511.7%	17
	Chairman
2. 3. 4. 5. 6. 7. 8.	Ms. Vinita Gupta, Chief Executive Officer Mr. Nilesh D. Gupta, Managing Director Mr. Ramesh Swaminathan, Executive Director, Global CFO & CRO and Head - Corporate Affairs Mr. Jean-Luc Belingard, Independent Director Mr. K. B. S. Anand, Independent Director Dr. Punita Kumar-Sinha, Independent Director Mr. Mark D. McDade, Independent Director	115.7% 93% 5.6% 1012.4% 893% 846.8% 970.5%	441 179 153 29 29 29 29
9.	Mr. R. V. Satam,	19.4%	N.A.
	Company Secretary

i) The median remuneration of employees of the Company for the year ended March 31, 2024 was ₹ 0.53 million.

ii) During the year ended March 31, 2024, there was a decrease of 1.09% in the median remuneration of employees.

iii) During the year ended March 31, 2024, there was an average increase of 10.96% in the salaries of employees other than managerial personnel.

iv) As on March 31, 2024, the Company had 18256 permanent employees.

v) During FY23, Ms. Vinita Gupta and Mr. Nilesh D. Gupta were paid 50% of the remuneration approved by shareholders. Thus, their FY24 remuneration are not comparable with the previous year’s numbers.

vi) Ms. Vinita Gupta is an employee of Lupin Management, Inc., USA, wholly owned subsidiary of the Company.

vii) In FY24, Non-Executive/Independent Directors were paid higher commission in line with the profits of the Company.

viii) We affirm that payment of remuneration is as per the Remuneration policy of the Company.

For and on behalf of the Board of Directors

Manju D. Gupta Chairman (DIN: 00209461)

Mumbai, May 6, 2024

Corporate Overview Statutory Reports Financial Statements 219

ANNEXURE ‘G’ TO THE DIRECTORS’ REPORT

FORM NO. MR.3 SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED MARCH 31, 2024

[Pursuant to the provisions of Section 204(1) of the Companies Act, 2013, Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015].

To,

The Members,

Lupin Limited

I have conducted Secretarial Audit of the compliance with applicable statutory provisions and adherence to good corporate practices by Lupin Limited (hereinafter called the ‘Company’). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on my verification of the books, papers, minutes books, forms and returns filed and other records maintained by the Company as also information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial Audit, I hereby report that in my opinion, the Company has during the audit period covering the year ended March 31, 2024, complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanisms in place to the extent, in the manner and subject to the reporting made hereinafter.

I have examined the books, papers, minutes books, forms and returns filed and other records maintained by the Company for the year ended March 31, 2024, according to the provisions of: -

1. The Companies Act, 2013, amendments thereto and Rules made thereunder;

2. The Securities Contracts (Regulation) Act, 1956 and Rules made thereunder;

3. The Depositories Act, 1996 and Regulations and Byelaws framed thereunder;

4. Foreign Exchange Management Act, 1999 and Rules and Regulations made thereunder to the extent of Foreign Direct Investment, as amended from time to time;

5. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992: -

• a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 2011, as amended from time to time;

• b. The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, as amended from time to time; and

• c. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, as amended from time to time.

I have also examined compliance with the applicable clauses of the following: -

• (i) Secretarial Standards issued by The Institute of Company Secretaries of India; and

• (ii) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time.

To the best of my understanding, I am of the view that during the period under review, the Company has complied with the provisions of the Acts, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

I further report that

Having regard to the compliance system prevailing in the Company and on examination of the relevant documents and records in pursuance thereof, on test check basis, the Company has complied with the following laws applicable specifically to the Company: -

• a. Drugs and Cosmetics Act, 1940 and Drugs and Cosmetics Rules, 1945, as amended from time to time;

• b. Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954, as amended from time to time; and

• c. Drugs (Price Control) Order, 2013, as amended from time to time.

I further report that

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. There was no change in composition of the Board of Directors of the Company during the year under review.

Adequate notice is given to all the Directors for attending the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance except in case of agenda having price-sensitive information and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meetings.

220 LUPIN LIMITED | Integrated Report 2023-2024

I further report that there are adequate systems and processes in the Company commensurate with its size and operations to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

I further report that during the financial year: -

The Company has issued and allotted 697573 equity shares aggregating ₹ 1,395,146 to eligible employees of the Company and its subsidiaries on exercising options under various stock option plans.

This Report is to be read with my letter of even date which is enclosed as Annexure 1 and forms integral part of this Report.

Neena J Bhatia (Company Secretary) FCS No: 9492 CP. No.: 2661

Place: Mumbai

Date: May 6, 2024 UDIN: F009492F000311629 Peer reviewed no: 1012/2020

Corporate Overview Statutory Reports Financial Statements 221

ANNEXURE ‘G’- 1

(TO THE SECRETARIAL AUDIT REPORT OF LUPIN LIMITED FOR YEAR ENDED MARCH 31, 2024).

To, The Members, Lupin Limited

My Report of even date is to be read along with this letter.

1. Maintenance of secretarial records is the responsibility of the management of the Company. My responsibility is to express an opinion on the secretarial records based on my audit.

2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. I believe that the processes and practices I followed, provide a reasonable basis for my opinion.

3. I have not verified the correctness and appropriateness of financial records and books of accounts of the Company.

4. Wherever required, I have obtained the Management Representation about the compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of Management. My examination was limited to the verification of procedures on test basis.

6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the Management has conducted the affairs of the Company.

Neena J Bhatia

(Company Secretary) FCS No: 9492 CP. No.: 2661

Place: Mumbai Date: May 6, 2024 UDIN: F009492F000311629 Peer reviewed no: 1012/2020

222 LUPIN LIMITED | Integrated Report 2023-2024

Corporate Governance Report

[1] Company’s Philosophy on Corporate Governance:

The Company has strengthened its industry leadership on the sturdy pillar of corporate governance philosophy, which is founded on the bedrock of integrity, ethics, accountability, fairness, transparency and professionalism. The Company strives to adopt best practices of corporate governance worldwide in its pursuit of attaining the highest standards of governance. Sound corporate governance systems and processes form an integral part of the Company’s business which enables it to deliver on the promise of providing affordable healthcare to patients globally. The inherent strength of the Company is a blend of effective leadership and good corporate governance practices.

The Company strongly believes that well-balanced Board is a key to nurture and practice the best standards of corporate governance. The Board is the custodian of trust and responsible for maximizing stakeholder value. The Company recognizes and embraces the importance of a diverse Board possessing wide experience in pharma, finance, strategy and general management. The Company has a balanced Board with an optimum blend of executive, non-executive and independent directors, who are specialized and competent in their respective fields. The Board gives strategic directions and provides independent insights on strategy and performance of the Company. Apart from complying with all mandatory requirements, the Company also complies with non-mandatory requirements as prescribed under Regulation 27(1) read with Part E of Schedule II of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) regarding unmodified audit opinions on financial statements, appointment of separate persons as Chairman, Chief Executive Officer and Managing Director and maintaining line of reporting of the Head of Internal Audit to the Audit Committee.

The Company’s success is not just about growth or performance, it has always been about doing the right things no matter how challenging the environment is. The Company has instituted P.L.E.D.G.E. ( P reparing L upin E mployees to D emonstrate G overnance and E thical Conduct), an initiative encompassing three important policies namely, Code of Business Conduct and Ethics (‘CODE’), Whistle Blower Policy and Prevention of Workplace Harassment, including sexual harassment at workplace. The Code of Business Conduct and Ethics is based on the Company’s values and principles, resonating across horizons. It intends to foster and maintain employee trust and confidence in management and promote professionalism and integrity amongst employees, customers and business partners. It promotes business activities with the highest ethical, legal and professional standards and also emphasises the Company’s commitment to integrity in every relationship and with every transaction. The Company adheres to uncompromising integrity in conduct of business and does not tolerate corrupt and immoral practices. The Company’s operations are guided by strong control systems which are reviewed by internal and external auditors at regular intervals.

CODE, Whistleblower Policy and Prevention of Workplace Harassment, empower employees to report unethical practices, sets-up specified mechanisms to deal with workplace harassments and facilitate their swift redressal. Employees can raise their concerns with the Office of Ombudsperson about potential issues concerning fraudulent business practices, unethical behaviour, discriminating or gender-biased misconduct and violation of Company’s policies or CODE. During the year, the Ombudsperson office received 37 complaints, mostly of minor nature, through multiple reporting channels. Teams of strategic business unit heads/officers appointed by the Ombudsperson investigated/examined the complaints and the same were satisfactorily resolved. During the year, the Company received 4 sexual harassment complaints. The Internal Committee investigated and resolved within the specified turnaround time as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The Company has adopted Codes of Conduct for directors, independent directors and senior management personnel, which are hosted on the website of the Company www.lupin.com. As mandated by Regulation 26(3) of the Listing Regulations, all directors and senior management personnel have affirmed compliance with their respective codes for the year ended March 31, 2024. In compliance with Schedule V(D) of the Listing Regulations, Mr. Nilesh D. Gupta, Managing Director, provided a declaration to this effect, which is annexed to this Report.

Sound mechanism and system of internal checks and controls are in place which are evaluated and updated by the Company at regular intervals. In today’s digital landscape, robust Information Security Management Systems (‘ISMS’) are paramount to safeguard the Company’s sensitive data, protect from cyber threats and ensure regulatory compliances. The Company has implemented the said framework under the name ‘KAVACH’ to ensure security controls and create awareness. To counter the ever-evolving threat landscape, the Company has, with its dedicated efforts, ensured evolvement of secure technologies and processes. KAVACH protects Company information by adopting appropriate policies, procedures, and guidelines and protects/safeguards end users from spam/phishing mails/cyber frauds. KAVACH periodically imparts training on cyber security through various online modules, which need to be mandatorily completed by all employees. Security advisories are regularly shared over e-mails. Internal and external audits are also conducted by professionals to ensure cyber-security. The Company has been accredited with ISO/IEC 27001:2013 certification for its ISMS at select locations viz. Head office at Mumbai, R&D locations at LRP Pune and Aurangabad, as also manufacturing facilities at Biotech-Pune, Mandideep, Pithampur, Ankleshwar, Visakhapatnam, Goa, Nagpur, Sikkim, Tarapur, Dabhasa and Jammu with an intent to transition to the new ISMS standard in FY25. Information security commitment has also been extended to global locations viz. USA, EMEA, APAC and LATAM regions under project ‘SHIELD’ to provide information security assurance to stakeholders.

In compliance with Regulation 25(10) of the Listing Regulations, directors and all employees of the Company are covered under Directors and Officers Insurance policy.

The Company is in compliance with applicable provisions of Regulations 17 to 27 and Clauses (b) to (i) of Regulation 46(2) of the Listing Regulations.

Corporate Overview Statutory Reports Financial Statements 223

[2] Board of Directors:

Board diversity

The Company firmly believes that a diverse Board is of outmost importance for its success. Various traits, including but not limited to culture, gender, age, race, nationality, geographical background, industry experience, skill and knowledge, are considered, while devising the Board’s composition. A diverse Board contributes in achieving the Company’s commercial and strategic objectives/business results, effective corporate governance, quality & responsible decisionmaking, sustainable development and maintaining a global reputation of the Company. The board diversity policy is hosted on the website of the Company, web link of which is https://www.lupin.com/wp-content/uploads/2022/08/ board-diversity-policy-signed.pdf.

Directors independence

Independent Directors who demonstrate an appropriate degree of independence in character and judgement, are independent from the management and free from any business or other pecuniary relationship with the Company which could materially impede in exercise of their judgements.

Board composition and number of meetings

The Board strength as on March 31, 2024, was eight, comprising two executive promoter-directors, one non-executive promoter-director, one executive director and four independent directors, which is in conformity with provisions of Section 149 of the Companies Act, 2013 (‘Act’) and Rules made thereunder and Regulation 17 of the Listing Regulations. In compliance with Regulation 17(1)(a) of the Listing Regulations, the Board has three women directors of which, one is an independent director. In terms of Schedule V(C)(10)(i) of the Listing Regulations, Ms. Neena Bhatia, Practising Company Secretary (FCS No. 9492 C.P. No. 2661) has certified that none of the directors of the Company have been debarred/ disqualified by Securities and Exchange Board of India/Ministry of Corporate Affairs or any statutory authority from being appointed or continuing as director of the Company. Pursuant to Regulation 25(8) of the Listing Regulations, all independent directors have confirmed that they meet the criteria of independence prescribed in Regulation 16(1)(b) of the Listing Regulations and Section 149(6) of the Act. The Board is of the opinion that all independent directors meet the criteria of independence as specified in the Act and the Listing Regulations. In compliance with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, the Company has received confirmation from all independent directors regarding registration with the independent directors databank maintained by the Indian Institute of Corporate Affairs. The maximum tenure of the independent directors is in compliance with the Act.

As stipulated by Regulation 17(10) of the Listing Regulations, the Board carried out performance evaluation of independent directors, without participation of the director being evaluated, based on different parameters like leadership qualities, initiative, contributions, inter-personal relationships, understanding strategic issues/business environment, analytical skills and independent judgement. Independent directors are a diversified group of recognised professionals with wide horizon of knowledge, integrity, proficiency and competence who expressed their opinions freely and exercised their individual judgements in decision-making. There were no conflicts of interest of independent directors with the Company. Particulars specified under Schedule V(C)(2) of the Listing Regulations for the year are given below: -

Sl. No.	Name of the Director	Whether Promoter/ Executive/	No. of Board Meetings during the year	No. of Board Meetings during the year	Board Tenure (Years)	Attendance at the last Annual	Number of directorships of companies	Number of directorships of other listed	Member/ Chairman of committees
		Independent				General	other than	companies	other
			Held	Attended Attendance in %		Meeting (‘AGM’)	subsidiaries of Lupin	(including company listed outside	than the Company
								India)
1.	Mrs. Manju D. Gupta, Chairman	P. & N-E.D.	7	6 85.7%	41.1	Yes	-	-	-
2. 3. 4. 5. 6. 7. 8.	Ms. Vinita Gupta, Chief Executive Officer Mr. Nilesh D. Gupta, Managing Director Mr. Ramesh Swaminathan Executive Director, Global CFO & CRO and Head – Corporate Affairs Mr. Jean-Luc Belingard, Independent Director Mr. K. B. S. Anand,* Independent Director Dr. Punita Kumar-Sinha, Independent Director Mr. Mark D. McDade, Independent Director	P. & E.D. P. & E.D. E.D. I. N-E.D. I. N-E.D. I. N-E.D. I. N-E.D.	7 7 7 7 7 7 7	7 100% 7 100% 7 100% 6 85.7% 7 100% 7 100% 7 100%	22.7 15.6 4.0 8.5 3.8 3.8 3.2	Yes Yes Yes Yes Yes Yes Yes	4 5 - 2 5 6 4	1 - - 2 5 - 1	- - - - 4/- 4/- -
				Average:	12.8

*Mr. K. B. S. Anand is an Independent Director of Tata Chemicals Limited, Borosil Limited, UFO Moviez India Limited, Bharat Forge Limited and Galaxy Surfactants Limited, companies listed in India. He holds more than four board mandates of listed companies other than Lupin Limited.

224 LUPIN LIMITED | Integrated Report 2023-2024

Notes:

• (a) P. & N-E.D.: Promoter & Non-Executive Director; P. & E.D.: Promoter & Executive Director; N-E.D.: Non-Executive Director; E.D.: Executive Director; I. N-E.D.: Independent Non-Executive Director.

• (b) Mrs. Manju D. Gupta is mother of Ms. Vinita Gupta and Mr. Nilesh D. Gupta.

• (c) No director holds directorships in more than ten public companies/seven equity listed companies and no independent director holds independent directorships in more than seven equity listed companies.

• (d) No independent director is Member of more than ten committees or Chairman of more than five committees across all public limited companies whether listed or not in which they are directors. Private Companies and Foreign Companies are excluded. Membership/Chairmanship of committees of only Audit Committee and Stakeholders’ Relationship Committee are considered.

Core skills/expertise/competencies identified by the Board

The Board comprises of eminent professionals, having rich experience, requisite skills, competence and expertise which elevates the quality of the Board’s decision-making and allows them to make effective contribution to the Board and its Committees thereby ensuring sustainable growth and enhancing long-term value for the stakeholders.

Directors are inducted on the basis of possession of the following core skills/expertise/competencies identified by the Board for the efficient functioning of the Company: -

==> picture [484 x 182] intentionally omitted <==

----- Start of picture text -----

Corporate Governance [Nurturing and practising the highest standards of corporate governance for efficient conduct of business, ]
build sustainable growth and maximise long-term value of stakeholders.
Extending leadership experience and guiding senior management teams for strategic planning and
Leadership & General decision making for achieving long-term growth opportunities. General management demonstrating talent
Management management & development, promoting ethical work culture and ensuring well-being of all employees at
workplace.
Healthcare/Pharma, Considerable experience in the field of healthcare and pharma with domain expertise in complex generics,
Science & Technology specialty, biosimilars and neuro-rehab across various geographies.
Manufacturing, Quality
Operational expertise/skills/technical know-how in manufacturing, quality and supply chain.
& Supply Chain
Ability to identify and evaluate critical ‘risks that matter’/legal compliances and ensure that appropriate
Risk Management
policies, procedures and risk mitigation plans are in place for making informed decisions.
Environment, Social &
Governance Leading the ESG vision with a view to align and integrate varied global ESG practices across the Company.
Information Being updated about emerging areas of technology viz., digital, cyber security, artificial intelligence, data
Technology center, data security, etc. and applying them in developing business models.
Finance & Accounts Knowledge and skills in financial management and reporting viz. treasury operations, capital allocation,
budgeting & analysis, audit and capex.
Mergers & Acquisitions [Evaluating strategies to grow organically and inorganically through acquisitions including brands and ] tactical business deals in line with the Company’s business.
----- End of picture text -----

The skills which are currently available with the board members have been mapped below: -

Director Name	Whether Promoter/ Executive/	Corporate Governance	Leadership & General Management	Healthcare/ Pharma, Science &	Manufacturing, Quality & supply chain	Manufacturing, Quality & supply chain	Risk Management	Environment Social and Governance	Information Technology	Finance & Accounts	Mergers & Acquisition
	Independent			Technology
Mrs. Manju D. Gupta	P. & N-E.D.		
Ms. Vinita Gupta Mr. Nilesh D. Gupta Mr. Ramesh Swaminathan Mr. Jean-Luc Belingard Mr. K. B. S. Anand Dr. Punita Kumar- Sinha Mr. Mark D. McDade	P. & E.D. P. & E.D. E.D. I. N-E.D. I. N-E.D. I. N-E.D. I. N-E.D.	      	      	    		    	      	      	      	    	      

Of the above eight board members, Ms. Vinita Gupta - Chief Executive Officer, Mr. Nilesh D. Gupta - Managing Director, Mr. Ramesh Swaminathan, Executive Director, Global CFO & CRO and Head - Corporate Affairs, Mr. Jean-Luc Belingard and Mr. Mark D. McDade, Independent Directors, have relevant experience in the Company’s line of business i.e. Healthcare Pharma.

On May 6, 2024, Mr. Jeffrey Kindler (DIN: 10592395) and Mr. Alfonso Zulueta (DIN: 10597962) were appointed as Additional Directors in the category of Non-executive, Independent Directors of the Company. Approval of Members for their appointments are being sought by way of Special Resolutions at the ensuing AGM.

Corporate Overview Statutory Reports Financial Statements 225

Board Meetings

Protection of interests of all stakeholders is the primary responsibility of the Board of Directors. The Board provides strategic directions, guidance and leadership to the Company’s senior management and also monitors operational performance with a view to ensure transparency in corporate dealings, compliance with applicable laws and creating sustainable growth in order to enhance stakeholders value. The Board is regularly apprised of key business developments. Detailed business presentations are made at board meetings by the CEO, MD, CFO and functional heads. The Board and its various Committees play a pivotal role in overseeing several business/functional areas. As the Board believes in ‘safety first’ approach, health/safety concerns are deliberated in detail at its meetings.

Board meetings dates are finalised after seeking convenience of all directors. Tentative annual calendar of Board meetings is circulated to all directors in advance in order to enable them in planning their schedules. Secretarial team intimates the business/department heads, well in advance about the board meeting dates, which allows them, to present detailed information to the Board, empowering it to make informed decisions. Board members are free to express their opinions and bring up important matters for consideration and discussions at its meetings. Directors keep the Board informed about changes in their board/committee positions (including chairmanships) held by them and their shareholdings in other companies. Board approvals, for urgent matters, are sought by way of circular resolutions, which are noted and confirmed at subsequent Board meetings.

In compliance with the Act and Rules made thereunder and Secretarial Standards - 1, agendas (backed by comprehensive notes), actions taken/status report (on decisions taken at previous Board/Committee meetings) and presentations to be made at meetings of the Board/Committees are circulated in advance through a secure platform. With the unanimous consent of the Board, all information which is in the nature of unpublished price sensitive, is circulated to directors at a shorter notice. Draft minutes of the Board/Committees are circulated to directors within 15 days from the date of the meeting. Copies of minutes of Board meetings of subsidiaries, minutes of Committees of the Board and reports/certificates confirming compliance with various applicable laws are tabled at Board meetings. The Company facilitates audio/video conferencing in case any Director wishes to attend the meeting through such mode.

Details of Board Meetings

During the year, seven Board meetings were held as mentioned below. In compliance with provisions of Section 173(1) of the Act and Regulation 17(2) of the Listing Regulations, the time-gap between two consecutive meetings was not more than 120 days. The Board approved two Resolutions by circulation, vide Circulars dated July 5, 2023 and September 25, 2023.

Details of Board Meetings During the year, seven Board meetings were held as mentioned below. In compliance with provisions of Section 173(1) of the Act and Regulation 17(2) of the Listing Regulations, the time-gap between two consecutive meetings was not more than 120 days. The Board approved two Resolutions by circulation, vide Circulars dated July 5, 2023 and September 25, 2023.	Details of Board Meetings During the year, seven Board meetings were held as mentioned below. In compliance with provisions of Section 173(1) of the Act and Regulation 17(2) of the Listing Regulations, the time-gap between two consecutive meetings was not more than 120 days. The Board approved two Resolutions by circulation, vide Circulars dated July 5, 2023 and September 25, 2023.	Details of Board Meetings During the year, seven Board meetings were held as mentioned below. In compliance with provisions of Section 173(1) of the Act and Regulation 17(2) of the Listing Regulations, the time-gap between two consecutive meetings was not more than 120 days. The Board approved two Resolutions by circulation, vide Circulars dated July 5, 2023 and September 25, 2023.	Details of Board Meetings During the year, seven Board meetings were held as mentioned below. In compliance with provisions of Section 173(1) of the Act and Regulation 17(2) of the Listing Regulations, the time-gap between two consecutive meetings was not more than 120 days. The Board approved two Resolutions by circulation, vide Circulars dated July 5, 2023 and September 25, 2023.	Details of Board Meetings During the year, seven Board meetings were held as mentioned below. In compliance with provisions of Section 173(1) of the Act and Regulation 17(2) of the Listing Regulations, the time-gap between two consecutive meetings was not more than 120 days. The Board approved two Resolutions by circulation, vide Circulars dated July 5, 2023 and September 25, 2023.	Details of Board Meetings During the year, seven Board meetings were held as mentioned below. In compliance with provisions of Section 173(1) of the Act and Regulation 17(2) of the Listing Regulations, the time-gap between two consecutive meetings was not more than 120 days. The Board approved two Resolutions by circulation, vide Circulars dated July 5, 2023 and September 25, 2023.	Details of Board Meetings During the year, seven Board meetings were held as mentioned below. In compliance with provisions of Section 173(1) of the Act and Regulation 17(2) of the Listing Regulations, the time-gap between two consecutive meetings was not more than 120 days. The Board approved two Resolutions by circulation, vide Circulars dated July 5, 2023 and September 25, 2023.	Details of Board Meetings During the year, seven Board meetings were held as mentioned below. In compliance with provisions of Section 173(1) of the Act and Regulation 17(2) of the Listing Regulations, the time-gap between two consecutive meetings was not more than 120 days. The Board approved two Resolutions by circulation, vide Circulars dated July 5, 2023 and September 25, 2023.
Board meeting wise attendance
09-05-2023 100%	03-08-2023 100%	11-09-2023 87.5%	08-11-2023 100%	07-12-2023 100%	07-02-2024 100%	22-03-2024 87.5%	Average 96%

Thus, the average attendance at Board meetings was more than 90% with minimum attendance criteria being 80%.

Board selection process

Board Members are elected individually by the following process: -

On the basis of parameters The screening and defined in the Nomination The Board appoints directors selection process has been and Remuneration Policy of subject to approval of delegated by the Board, to the Nomination and the Company, the Nomination and Remuneration Members which is obtained within three months or at The proposal is placed before Members for seeking their Remuneration Committee, Committee recommends the next general meeting, approval. which comprises of eligible candidates to the whichever is earlier. independent directors. Board.

Brief profiles, other directorships/committee memberships of directors seeking appointment/ re-appointment at the 42[nd] Annual General Meeting.

Mr. Nilesh D. Gupta - Managing Director

Mr. Nilesh D. Gupta, (DIN: 01734642) is a Chemical Engineer from the University Department of Chemical Technology (UDCT), Mumbai and a graduate with honors from the Wharton School, University of Pennsylvania, USA, where he specialised in healthcare, strategic management and finance. Mr. Gupta has been instrumental in formulating and executing the core strategy that has helped the Company emerge as a global specialty and complex generics pharmaceutical powerhouse. Mr. Gupta is Member of the Audit Committee, Stakeholders’ Relationship Committee, CSR Committee, Risk Management Committee and Strategy Committee of the Company.

226 LUPIN LIMITED | Integrated Report 2023-2024

List of directorships of companies other	Chairman/Member of Committees of
than subsidiaries of Lupin	companies other than subsidiaries of Lupin
Lupin Investments Private Limited	-
Synchem Properties Private Limited
Zyma Properties Private Limited
Polynova Industries Limited
Visiomed Investments Private Limited

Mr. Jeffrey Kindler - Independent Director

Mr. Jeffrey Kindler has completed a Bachelor of Arts degree (Summa cum Laude) from Tufts University, USA and a Juris Doctor degree (Magna cum Laude) from Harvard Law School, USA. He served as a law clerk to Justice William J. Brennan, Jr. of the United States Supreme Court. Mr. Kindler is an experienced healthcare executive, investor and advisor. He brings over four decades of business experience and has held leadership positions at some of the world’s most recognized companies including Pfizer, where he served as Chairman & Chief Executive Officer, as well as McDonald’s Corporation and General Electric Company. Before that, he was a partner at the law firm of Williams & Connolly. He is currently CEO of Centrexion Therapeutics, a privately held biotechnology company, and a Senior Advisor to Blackstone. Mr. Kindler has a deep understanding of multinational corporate matters including regulations, litigations, compliance, crisis management, brand, franchise management, executive leadership and mergers & acquisitions. He is Chairman of the Talent & Compensation Committee of Perrigo Pharmaceuticals; Chairman of the Audit Committee and Member of Compensation Committee of Precigen Inc.; Chairman of the Compensation Committee of Terns Pharmaceuticals; and a member of the Audit and Compensation Committees of Jazz at Lincoln Center. Mr. Kindler is Member of the Risk Management Committee and Strategy Committee of the Company.

List of directorships of companies other	Chairman/Member of Committees of companies other
than subsidiaries of Lupin	than subsidiaries of Lupin
Centrexion Therapeutics	Chairman of Talent and Compensation Committee of Perrigo Company Plc., USA
Perrigo Company Plc.	Chairman of Audit Committee and Member of Compensation Committee of
Precigen Inc., USA	Precigen Inc., USA
Terns Pharmaceuticals Inc., USA	Chairman of Compensation Committee of Terns Pharmaceuticals Inc., USA
Excision BioTherapeutics, USA	Member of Audit Committee and Compensation Committee of Jazz at Lincoln Center
EntityRisk, Inc., USA
Jazz at Lincoln Center

Mr. Alfonso Zulueta - Independent Director

Mr. Alfonso Zulueta completed an Economics undergraduate degree from De LA Salle University, Manila, where he was conferred the 2023 Outstanding Alumnus Award. He received MBA degree in Marketing/Finance from University of Virginia, USA.

Mr. Zulueta spent over three decades in various roles of increasing responsibility with Eli Lilly and Company, a global pharmaceutical company, including as Vice President of Global Marketing, President of Global Oncology and Critical Care Products and most recently, as President of International responsible for all geographies outside the United States and Canada. He also served as a corporate officer and member of Eli Lilly and Company’s Executive Committee. Mr. Zulueta previously served as member of the board of the European Federation of Pharmaceutical Industries and Associations and the U.S.-Japan Business Council.

Mr. Zulueta currently serves as Non-Executive Chairman of the board of directors of Interpharma Investments Limited, the holding company of Zuellig Pharma, one of the largest healthcare services groups in Asia. He is also CEO/Owner of CZ Ventures, a company focused on start-up investments. Mr. Zulueta serves as a director of Glooko, Inc., a provider of connected care software solutions for persons with chronic conditions and of CTS Corporation, a leading global designer and manufacturer of sensors, actuators and electronic components. He previously served as a director of Amarin Corporation, Syneos Health, Inc. and Calidi Biotherapeutics, Inc. Mr. Zulueta serves on a number of committees of boards including Audit, Compensation and ESG.

Mr. Zulueta is a member of the Strategy Committee of the Company.

List of directorships of companies other	Chairman/Member of Committees of companies other
than subsidiaries of Lupin	than subsidiaries of Lupin
Interpharma Investments Limited	Member of Audit and Nomination & Governance Committee of CTS Corporation.
Glooko, Inc.	Member of Compensation Committee of Glooko Inc.
CTS Corporation

[3] Audit Committee:

The Audit Committee comprises Dr. Punita Kumar-Sinha, Independent Director, Chairperson , Mr. Nilesh D. Gupta, Managing Director and Mr. K. B. S. Anand, Independent Director. Mr. R. V. Satam, Company Secretary, acts as Secretary of the Committee.

The composition of the Audit Committee is in compliance with Section 177 of the Act and Regulation 18(1) of the Listing Regulations. As stipulated by Regulation 18(1)(c) of the Listing Regulations, all members of the Committee have the ability to read and understand financial statements and have accounting or related financial management expertise.

Corporate Overview Statutory Reports Financial Statements 227

The Audit Committee functions as an interface between the statutory, internal, cost auditors, management and the Board. It assists the Board in fulfilling its responsibilities pertaining to monitoring internal financial controls and financial reporting process, reliability of financial statement, adequacy of provisions for liabilities, evaluating appropriateness of audit test checks and supervising the governance systems. Statutory auditors, internal auditor and senior executives from finance regularly attend the Audit Committee meetings. Internal auditors make presentations on audit findings at the said meetings. The cost auditor attends the Audit Committee meeting at which the cost audit report is tabled. Dr. Kumar-Sinha attended the 41[st] AGM held on August 3, 2023.

The Audit Committee performs functions enumerated in Section 177(4) of the Act and Regulation 18(3) read with Part C of Schedule II of the Listing Regulations. Matters deliberated upon and reviewed by the Committee include: -

• 1) Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that the financial statements are correct, sufficient and credible.

• 2) Recommending to the Board, the appointment, remuneration and terms of appointment of auditors.

• 3) Approving payments to Statutory Auditors for any other additional services rendered by them except those enumerated under Section 144 of the Act.

• 4) Reviewing with the management, the annual financial statements and auditors’ report thereon before submission to the Board for approval, with particular reference to: -

• a) matters required to be included in the Directors’ Responsibility Statement included in the Board’s Report in terms of Section 134(3)(c) of the Act;

• b) changes, if any, in accounting policies and practices and reasons therefor;

• c) major accounting entries involving estimates based on the exercise of judgment by management;

• d) significant adjustments made in the financial statements arising out of audit findings, if any;

• e) compliance with listing and other legal requirements relating to financial statements;

• f) disclosure of related party transactions; and

• g) modified opinion(s) in the draft audit report, if any.

• 5) Reviewing with the management, the quarterly unaudited financial results together with the Limited Review Report of the Auditors before submission to the Board for approval.

• 6) Reviewing and monitoring the auditors’ independence, performance and effectiveness of audit process.

• 7) Approving or any subsequent modification of transactions of the Company with related parties.

• 8) Scrutinising inter-corporate loans and investments.

• 9) Valuation of undertakings or assets of the Company, wherever necessary.

• 10) Evaluating internal financial controls and risk management systems.

• 11) Reviewing with the management, the performance of statutory and internal auditors and adequacy of the internal control systems.

• 12) Reviewing the adequacy of internal audit function, including the structure of the internal audit department, its staffing and seniority of the official heading the department, reporting structure, coverage and frequency of audits.

• 13) Discussion with the internal auditors on significant findings and follow-up thereon.

• 14) Reviewing the findings of internal auditors and reporting them to the Board.

• 15) Discussion with statutory auditors before the audit commences about the nature and scope of audit as well as post-audit discussion to ascertain areas of concern, if any.

• 16) Reviewing the functioning of Whistle Blower mechanism.

• 17) Approving the appointment of chief financial officer after assessing the qualifications, experience and background, etc. of the candidate.

• 18) Reviewing utilization of loans and/or advances from/investment in subsidiaries exceeding ₹ 1000 million or 10% of the asset size of the subsidiary, whichever is lower including existing loans/advances/investments.

• 19) Consider and comment on rationale, cost-benefits and impact of schemes involving merger, demerger, amalgamation etc., on the Company and its shareholders.

• 20) Reviewing compliance with the provisions of Prohibition of Insider Trading Regulations and verifying that the systems for internal control for prohibition of insider trading are adequate and are operating effectively.

• 21) Recommending to the Board, the appointment and remuneration of Cost Auditor to conduct audit of cost records in compliance with the provisions of the Act and Rules made thereunder.

• 22) Reviewing the financial statements of subsidiary companies as also the consolidated financial statements, including investments made by the subsidiary companies.

• 23) To look into the reasons for substantial defaults, if any, in payments to shareholders (for non-payment of declared dividends) and creditors.

• 24) Carrying out such other functions as may be mentioned in the terms of reference of the Audit Committee.

In addition to the above, the Committee reviews the management discussion and analysis, management letters and internal audit reports relating to observations on internal controls.

228 LUPIN LIMITED | Integrated Report 2023-2024

Details of Committee meetings

In compliance with Regulation 18(2)(a) of the Listing Regulations, five Audit Committee meetings were held during the year and the time-gap between two consecutive meetings was not more than 120 days. Meetings were held on May 9, 2023, August 2, 2023, September 18, 2023, November 8, 2023 and February 7, 2024, attendance at which was as under: -

Sl. No. Name of the Director	No. of Meetings
	Held Attended
a. Dr. Punita Kumar-Sinha, Chairperson	5 5
b. Mr. K. B. S. Anand	5 5
c. Mr. Nilesh D. Gupta	5 5

[4] Stakeholders’ Relationship Committee:

The Stakeholders’ Relationship Committee (‘SRC’) comprises Mr. K. B. S. Anand, Independent Director, Chairman, Mr. Nilesh D. Gupta, Managing Director and Dr. Punita Kumar-Sinha, Independent Director. Mr. R. V. Satam, Company Secretary, acts as Secretary of the SRC. The SRC reviews and evaluates activities pertaining to investors services including activities related to the Investor Education & Protection Fund. Mr. Anand attended the 41[st] AGM held on August 3, 2023.

During the year, the Company received and resolved 36 complaints from shareholders regarding transfer of shares, non-receipt of annual report/dividend etc. As on March 31, 2024, no complaint remained pending/unattended.

In compliance with Regulation 20(4) read with Part D(B) of Schedule II of the Listing Regulations, the Committee deliberates and reviews matters related to: -

• 1) Resolving grievances of shareholders including complaints related to transfer/transmission of shares, non-receipt of annual report/dividend, issue of duplicate certificates, demat/remat of shares, annual general meetings, etc.

• 2) Review of measures taken for effective exercise of voting rights by shareholders.

• 3) Review of adherence to the service standards adopted by the Company in respect of services rendered by the Registrar & Share Transfer Agent.

• 4) Review of various measures and initiatives taken by the Company for reducing the quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of the Company.

Details of Committee meetings

During the year, two meetings of the SRC were held on October 18, 2023 and March 15, 2024, the attendance at which was as under: -

Sl. No. Name of the Director	No. of Meetings
	Held Attended
a. Mr. K. B. S. Anand, Chairman	2 2
b. Mr. Nilesh D. Gupta	2 2
c. Dr. Punita Kumar-Sinha	2 2

[5] Nomination and Remuneration Committee:

The Nomination and Remuneration Committee (‘NRC’) comprises Mr. Jean-Luc Belingard, Chairman, Dr. Punita KumarSinha and Mr. Mark D. McDade, Independent Directors, which is in compliance with the provisions of Section 178(1) of the Act and Regulation 19(1) of the Listing Regulations. Mr. R. V. Satam, Company Secretary, acts as Secretary of the NRC. Pursuant to Regulation 19(2) of the Listing Regulations, the Chairman of the NRC is an Independent Director. Mr. Belingard, Chairman of the NRC attended the 41[st] AGM held on August 3, 2023.

Pursuant to Section 178 of the Act and Regulation 19(4) read with Part D(A) of Schedule II of the Listing Regulations, the NRC performs the following functions: -

• 1) Formulation of criteria for determining qualifications, positive attributes and independence of a director and recommend to the board of directors, a policy relating to the remuneration of directors, key managerial personnel and other employees.

• 2) For every appointment of an independent director, the NRC evaluates the balance of skills, knowledge and experience on the Board and on the basis of such evaluation, prepares a description of the role and capabilities required of an independent director. The NRC ensures that person recommended to the Board for appointment as an independent director has the capabilities identified in such description. For the purpose of identifying suitable candidates, the NRC: -

• a. may engage services of external agencies, if required;

• b. consider candidates from a wide range of backgrounds, having due regard to diversity; and

• c. consider the time commitments of the candidates.

• 3) Formulation of criteria for evaluation of performance of independent directors and the Board of directors.

• 4) Devise a policy on diversity of the Board of directors.

Corporate Overview Statutory Reports Financial Statements 229

• 5) Identify persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down and recommend to the Board of directors their appointment and removal.

• 6) Recommend whether to extend or continue the term of appointment of an independent director, based on the report of performance evaluation of the independent director.

• 7) Recommend remuneration payable to executive directors and key managerial personnel.

• 8) Specify the manner for effective evaluation of performance of the Board, its Committees and individual directors to be carried out either by the Board, by the NRC or by an Independent external agency and review its implementation and compliance.

• 9) Administer employees stock option plans and phantom stocks.

• 10) Have access to any internal information necessary to fulfill responsibilities.

• 11) Have authority to appoint, remove, obtain advice and assistance from internal or external experts/advisors.

• 12) Perform such functions as prescribed by the Act, Listing Regulations or any other applicable law from time to time.

Remuneration of executive directors:

The NRC recommends to the Board, the remuneration payable to executive directors and key managerial personnel at the time of their appointment/re-appointment within the limits approved by Members and in line with the Company’s annual increment cycle. The NRC reviews the performance of executive directors and key managerial personnel and approves annual revisions and performance linked incentives. While recommending remuneration, the NRC considers various factors viz., qualifications, leadership qualities, relevant experience, expertise, responsibilities shouldered by the individual and volume of business/profits of the Company. Remuneration limits are as prescribed by Section 197 read with Schedule V, Part II, Section I of the Act and Rules made thereunder. With a view to attract, retain and motivate the best and deserving talent, the Company follows a market-linked remuneration policy and benchmarks its remuneration/ employee benefits with its industry peers.

Details of remuneration paid to executive directors are as under: -

Name of the Director	Remuneration for 2023-24(₹ in million)
	Salary & Perquisites Stock Options Others (Performance- Linked Incentive) Total
Ms. Vinita Gupta, Chief Executive Officer	141.21 - 94.38 235.59
Mr. Nilesh D. Gupta, Managing Director	72.40 - 23.38 95.78
Mr. Ramesh Swaminathan, Executive Director, Global CFO & CRO and Head - Corporate Affairs	62.53 8.08 11.08 81.69

Notes:

• 1) Ms. Vinita Gupta is an employee of Lupin Management, Inc., (‘LMI’), USA, wholly owned subsidiary of the Company. She receives remuneration from LMI and does not receive any remuneration from Lupin Limited.

• 2) Performance-linked incentive depends on corporate performance indicators viz. revenue growth, EBIDTA margin and earnings per share.

Remuneration of non-executive directors:

Non-executive directors are paid sitting fees for attending meetings of the Board and its Committees, within the limits prescribed by the Act and Rules made thereunder. In addition to the sitting fees, non-executive directors are paid commission, in recognition of valuable contributions made by them to the Company’s business. The Members, at the 38[th] AGM of the Company held on August 12, 2020, approved the payment of commission to non-executive directors not exceeding in the aggregate 0.5% per annum of the Company’s standalone net profits, computed in the manner laid down by Sections 197, 198 and other applicable provisions of the Act, for a period of five years commencing April 1, 2020. An amount of ₹ 69.84 million has been approved by the Board towards commission to non-executive directors for FY 2023-24. Annual remuneration of a single non-executive director does not exceed fifty per cent of the total annual remuneration payable to all non-executive directors, which is in compliance with Regulation 17(6) of the Listing Regulations.

Details of remuneration of non-executive directors are as under: -

Name of the Director No. of Equity Shares held as on March 31, 2024	Remuneration for 2023-24(₹ in million)
	Sitting Fees Commission Value of Perquisites Total
Mrs. Manju D. Gupta, Chairman 3871162	0.14 8.73 - 8.87
Mr. Jean-Luc Belingard, Independent Director -	0.18 15.28 - 15.46
Mr. K. B. S. Anand, Independent Director -	0.32 15.27 - 15.59
Dr. Punita Kumar-Sinha, Independent Director 500	0.34 15.28 - 15.62
Mr. Mark D. McDade, Independent Director -	0.24 15.28 - 15.52

230 LUPIN LIMITED | Integrated Report 2023-2024

Details of NRC meetings

In compliance with Regulation 19(3A) of the Listing Regulations, meetings of the NRC were held on May 4, 2023 and June 14, 2023, attendance at which, was as under: -

Details of NRC meetings In compliance with Regulation 19(3A) of the Listing Regulations, meetings of the NRC were held June 14, 2023, attendance at which, was as under: -	on May 4, 2023 and
Sl. No. Name of the Director	No. of Meetings
	Held Attended
a. Mr. Jean-Luc Belingard, Chairman	2 2
b. Dr. Punita Kumar-Sinha	2 2
c. Mr. Mark D. McDade	2 2

Vide six circulars dated July 28, 2023, August 2, 2023, September 5, 2023, December 12, 2023, January 25, 2024 and February 26, 2024, the NRC passed 15 Resolutions inter-alia for granting stock options/phantom stocks to eligible employees of the Company and its subsidiaries and payment of annual revisions/performance linked incentives to executive directors and key managerial personnel.

[6] Corporate Social Responsibility Committee:

The Corporate Social Responsibility (‘CSR’) Committee comprises Mrs. Manju D. Gupta, Chairman, Ms. Vinita Gupta, Chief Executive Officer, Mr. Nilesh D. Gupta, Managing Director and Mr. K. B. S. Anand, Independent Director, the composition of which is in compliance with the provisions of Section 135(1) of the Act.

Pursuant to Section 135(3) of the Act, the CSR Committee performs the following functions: -

• 1) Formulate and recommend to the Board, the CSR policy covering activities to be undertaken by the Company in areas/subjects specified in Schedule VII of the Act.

• 2) Recommend the amount of expenditure to be incurred on CSR activities.

• 3) Monitor the CSR policy of the Company.

• 4) Formulate and recommend to the Board, an annual action plan in pursuance of the CSR policy, which shall include items mentioned in Rule 5(2) of the Companies (Corporate Social Responsibility Policy) Rules, 2014.

• 5) Access to any internal information necessary to fulfill its responsibilities.

• 6) Appoint, remove, obtain advice and assistance from internal or external experts/advisors.

• 7) Perform such functions as prescribed by the Act and CSR Rules or any other applicable law from time to time.

Details of CSR Committee meeting

Meeting of the CSR Committee was held on December 12, 2023, attendance at which was as under: -

Sl. No. Name of the Director	No. of Meetings
	Held Attended
a. Mrs. Manju D. Gupta, Chairman	1 1
b. Ms. Vinita Gupta	1 1
c. Mr. Nilesh D. Gupta	1 1
d. Mr. K. B. S. Anand	1 1

[7] Risk Management Committee:

The Risk Management Committee (‘RMC’) presently comprises Ms. Vinita Gupta, Chief Executive Officer, Mr. Nilesh D. Gupta, Managing Director, Mr. Ramesh Swaminathan, Executive Director, Global CFO & CRO and Head - Corporate Affairs, and Mr. Mark D. McDade and Mr. Jeffrey Kindler, Independent Directors, which is in compliance with Regulations 21(2) and (3) of the Listing Regulations. As stipulated by Regulations 21 (3A) and (3C) of the Listing Regulations, the RMC met twice in the year and the gap between two meetings was less than 180 days. The quorum at RMC meetings was in compliance with Regulation 21(3B) of the Listing Regulations.

Pursuant to Regulation 21(4) read with Part D(C) of Schedule II of the Listing Regulations, the RMC performs the following functions: -

• (1) To formulate a detailed Risk Management Policy including: -

• (a) a framework for identification of internal and external risks specifically faced by the Company, in particular including financial, operational, sectoral, sustainability (particularly, ESG related risks), information, cyber security risks or any other risk as may be determined by the RMC;

• (b) measures for risk mitigation including systems and processes for internal control of identified risks; and

• (c) business continuity plan.

• (2) To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company.

• (3) To monitor and oversee implementation of the Risk Management Policy, including evaluating the adequacy of risk management systems.

Corporate Overview Statutory Reports Financial Statements 231

• (4) To periodically review the Risk Management Policy, at least once in two years, including by considering the changing industry dynamics and evolving complexity.

• (5) To keep the Board informed about the nature and content of its discussions, recommendations and actions to be taken.

• (6) To review the appointment/removal and terms of remuneration of the Chief Risk Officer of the Company.

• (7) To discuss and review the status and financial implications of major litigations in India and overseas.

• (8) To review GMP compliances by manufacturing facilities of the Company in India and overseas.

• (9) To review the status of inspections/observations by regulatory bodies and remedial measures taken.

• (10) To review the financial impact of hedging, derivatives, forward contracts, etc. entered into by the Company.

• (11) To ensure that the Company achieves prudent balance between risk and reward.

• (12) To monitor and evaluate significant risk exposures of the Company including data privacy and cyber security risk.

• (13) To co-ordinate with other Committees of the Board, in instances where there is any overlap with activities of such Committees.

• (14) To seek information from any employee, seek external, legal or other professional advice and secure the attendance of outsiders with relevant expertise, if considered necessary.

• (15) To review and report to the Board, matters as may be delegated to the RMC by the Board.

Details of RMC meetings

Meetings of the RMC were held on July 31, 2023 and January 18, 2024, attendance at which was as under: -

(15)To review and report to the Board, matters as may be delegated to the RMC by the Board. Details of RMC meetings Meetings of the RMC were held on July 31, 2023 and January 18, 2024, attendance at which was	as under: -
Sl. No. Name of the Director/Executive	No. of Meetings
	Held Attended
a. Ms. Vinita Gupta, Chairman	2 2
b. Mr. Nilesh D. Gupta	2 2
c. Mr. Ramesh Swaminathan	2 2
d. Mr. Mark D. McDade	2 2
e. Mr. Sunil Makharia (up to May 6, 2024)	2 2
f. Mr. Jeffrey Kindler (effective May 6, 2024)	- -

[8] Senior Management:

Senior Management shall mean officers/personnel of the Company who are members of its core management team excluding Board of Directors and comprises members of management one level below the Chief Executive Officer/ Managing Director/Executive Director and includes the Company Secretary.

Regulation 34(3) read with Schedule V(C)(5B) of the Listing Regulations mandates disclosing the particulars of changes in the senior management since the close of the previous financial year. Mr. Christoph Funke was appointed as Chief Technical Operations Officer of the Company effective March 18, 2024.

[9] Independent directors’ meeting:

Pursuant to Regulation 17(1)(b) of the Listing Regulations, the Company had four independent directors as on March 31, 2024. A meeting of the Independent Directors was convened on March 15, 2024, in compliance with Section 149(8) read with Schedule IV(VII) of the Act, Regulation 25(3) of the Listing Regulations and Clause 2.3 of the Secretarial Standards - 1.

The meeting was attended by all independent directors and was chaired by Mr. Jean-Luc Belingard, without the presence of non-independent directors and members of the management. The meeting reviewed the performance of Chairman of the Company, each non-independent director and the Board as a whole. They appreciated the quality, quantity, adequacy, effectiveness and timeliness of flow of information between Company management and the Board. The independent directors recognized the positive performance of the Company and acknowledged the Company’s overall financial and share-price performance.

[10] Familiarisation program for independent directors:

Pursuant to Regulation 25(7) of the Listing Regulations, the Company, through different programs, regularly familiarises its independent directors and provides them an in-depth insight of the Company along with latest developments in pharma industry as a whole to enable them to participate effectively. Presentations on financial/business SBU-wise performance, risk assessment/minimization, policies, procedures, strategies, operations, environment, health and safety measures, are made by business heads at Board meetings. Independent directors are regularly apprised about material information/developments by sharing with them, important press releases disseminated on the stock exchanges. Letters of appointment issued to independent directors inter-alia covering their roles, functions, duties and responsibilities are hosted on the Company’s website www.lupin.com. In compliance with Regulation 46 of the Listing Regulations, details of familiarisation programs are available on the Company’s website www.lupin.com, web link for which is https://www.lupin. com/wp-content/uploads/2021/04/familiarisation-programme.pdf.

232 LUPIN LIMITED | Integrated Report 2023-2024

[11] General Body Meetings:

Details of the last three Annual General Meetings: -

Year	Day, Date and Time	Location	No. of Special Resolutionspassed
2020-21	Wednesday,	Video conferencing/other audio-visual means.	One Special Resolution was passed for
	August 11, 2021, at 4:30 p.m.	Venue of the meeting was deemed to be the	the re-appointment of Ms. Christine
		Registered Office of the Company, 3rdFloor, Kalpataru	Mundkur as an Independent Director of
		Inspire, Off Western Express Highway, Santacruz (East), Mumbai - 400 055.	the Company for a second term of five years i.e. up to August 10, 2026.
2021-22	Wednesday, August 3, 2022, at 4:00 p.m.	-do-	None.
2022-23	Thursday,		One Special Resolution was passed
	August 3, 2023, at 11:30 a.m.	-do-	for the continuation of non-executive directorship of Mr. Jean-Luc Belingard,
			Independent Director.

No business was required to be transacted through postal ballot at the above meetings. No postal ballot was conducted during the financial year 2023-24.

[12] Related party transactions and other disclosures:

All transactions entered into by the Company with related parties, during the year, were in the ordinary course of business and on an arm’s length basis, in accordance with the provisions of the Act and Rules made thereunder as also the Listing Regulations. No related party transaction was in conflict with the interests of the Company. The Company entered into material-related party transactions only with its wholly owned subsidiaries. Apart from remuneration and sitting fees, there was no pecuniary transaction with any director of the Company.

In compliance with provisions of Sections 177(4)(iv) and 188 of the Act and Regulation 23(2) of the Listing Regulations, statements of related party transactions were periodically placed before the meetings of the Audit Committee and were reviewed and approved by the Independent Directors of the Committee. In compliance with Rule 6A of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 23(3) of the Listing Regulations, the Audit Committee granted omnibus approvals to transactions which were likely to be entered into by the Company with related parties other than its wholly owned subsidiaries, during FY2024. Pursuant to each omnibus approval, the Audit Committee reviewed, on a quarterly basis, details of all transactions entered into by the Company with related parties. In terms of Regulation 46(2)(g) of the Listing Regulations, the ‘Related party transactions and materiality of related party transactions’ policy, approved by the Board, has been hosted on the Company’s website www.lupin.com, web link of which is https://www.lupin.com/wp-content/uploads/2022/03/rpt-policy-03-02-2022.pdf.

As stipulated by Regulation 23(9) of the Listing Regulations, particulars of related party transactions were electronically disseminated on the stock exchanges i.e. BSE - Listing Centre and NSE - NEAPS for half-years ended March 31, 2023 and September 30, 2023, on the date of publication of financial results and the same were hosted on the Company’s website www.lupin.com. Pursuant to Ind AS 24, details of transactions with related parties are disclosed in the notes forming part of the financial statements.

Pursuant to the provisions of Section 189(1) of the Act and Rules made thereunder, particulars of transactions entered into by the Company with related parties, in which directors are interested, were recorded in the ‘Register of Contracts with related party and contracts and bodies, etc.’ viz., Form No. MBP - 4 and signed by directors who attended the Board Meetings.

In terms of Schedule V(C)(10)(n) of the Listing Regulations, details of wholly owned material subsidiaries of the Company are as follows: -

are as follows: -
Name of the material subsidiary	Place and date of incorporation	Name of the audit firm	Date of appointment
Nanomi B.V., the Netherlands (‘Nanomi’)	the Netherlands,	Baker Tilly (Netherlands), N.V.	July 1, 2022
	March 30, 2007
Lupin Atlantis Holdings SA, Switzerland (‘LAHSA’)	Switzerland, June 5, 2007	KPMG AG	September 6, 2023
Lupin Pharmaceuticals Inc., USA (‘LPI’)	USA,	KPMG LLP	July 18, 2023
	June 30, 2003

Regulation 24(1) of the Listing Regulations, mandates that at least one independent director of the Company shall be on the Board of its unlisted material subsidiary. While Mr. Mark D. McDade, Independent Director, is on the Board of Nanomi, Mr. Jean-Luc Belingard, Independent Director, is on the Boards of LAHSA and LPI. The policy for determining material subsidiaries has been hosted on the Company’s website www.lupin.com, web link of which is policy-for-determiningmaterial-subsidiaries.pdf (lupin.com).

[13] Fees paid to Statutory Auditors:

During FY 2023-24, the Company and its subsidiaries, paid a consolidated sum of ₹ 147.4 million (including out of pocket expenses) to B S R & Co. LLP, Chartered Accountants, statutory auditors and all other entities in its network globally (KPMG).

Corporate Overview Statutory Reports Financial Statements 233

[14] Means of communication:

The Company recognises that effective and prompt communication is the key to the overall corporate governance framework and emphasizes on communication through multiple channels such as integrated reports, press releases, investor meets/calls with its stakeholders, disseminating material events on the stock exchanges and hosting the same on the Company’s website www.lupin.com. As stipulated by Regulation 33 of the Listing Regulations, unaudited quarterly/ audited annual financial results are disseminated on the stock exchanges within 45 days of the end of the quarter and 60 days from the end of the financial year respectively. Quarterly/annual financial results are electronically submitted to the stock exchanges within 30 minutes of closure of the Board meeting in which they are approved, uploaded on the Company’s website and published in the ‘Economic Times’ (all editions) in English and the ‘Maharashtra Times’ (Mumbai edition) in Marathi, pursuant to Regulation 47 of the Listing Regulations. In terms of Schedule III Part A Para A(15) of the Listing regulations, schedule of analysts/institutional investors/earnings call, presentations made thereat and audio recordings are promptly disseminated on the stock exchanges within the prescribed time and hosted on the website of the Company www.lupin.com. Transcripts of earnings calls are disseminated on the stock exchanges within five working days from the conclusion of the calls and hosted on the Company’s website www.lupin.com. Shareholding pattern and corporate governance reports are electronically submitted on a quarterly basis to the stock exchanges in XBRL mode. Video recordings of AGMs have been hosted on the website of the Company. Unpublished price sensitive information is not disclosed at investors meets and presentations made to analysts.

Pursuant to SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, the Company promptly disseminates to the stock exchanges, events/information which are deemed material and are required to be disclosed under Regulation 30 read with Schedule III Part A Para A of the Listing Regulations, in the format and within timelines as prescribed. The Company also disseminates material information under Regulation 30 read with Schedule III Part A Para B of the Listing Regulations, based on the criteria for determining materiality of events/information. Policies for determining materiality of events for the purpose of making disclosures to the Exchanges as also disclosures made thereunder are hosted on the website of the Company www.lupin.com. As a good corporate practice, a week before the date of the Board meeting at which financial results are to be considered, black-out period is observed, during which directors/ senior management are advised not to communicate with investors/analysts and media till the financial results are made public. The Company has complied with all requirements of the Stock Exchanges, MCA, SEBI, RBI as also other statutory authorities on matters relating to capital markets and that no penalties have been imposed nor any strictures were passed against the Company. In compliance with Regulation 9 of the Listing Regulations, a policy on preservation of documents and archival policy has been hosted on the website of the Company www.lupin.com, web link of the same is https://www.lupin.com/wp-content/uploads/2021/05/preservation-of-documents-and-archival-policy.pdf .

[15] General Members’ information:

INVESTORS’ SERVICES

Link Intime India Pvt. Ltd. (‘Link Intime’), Registrar and Share Transfer Agent (‘RTA’), leaders in the corporate registry business, manage activities related to the shares of the Company. They are equipped with modern infrastructure, experienced staff and have in place, best systems and controls. Link Intime deploys the latest technology and have a professional team of domain experts.

Members can approach Link Intime for any query or assistance through e-mails, letters, over telephone or by visiting their office situate at C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai - 400 083, Tel: +91 22 4918 6270, Toll Free No. 1800 1020 878, E-mail: rnt.helpdesk@linkintime.co.in.

ANNUAL GENERAL MEETING

In compliance with MCA General Circular No. 09/2023 dated September 25, 2023 read with General Circular Nos. 20/2020 dated May 5, 2020, 02/2022 dated May 5, 2022 and 10/2022 dated December 28, 2022, the 42[nd] AGM will be held on Friday, August 2, 2024, through video conferencing/other audio-visual means. Kindly refer to the Notice of the 42[nd] AGM for details.

FINANCIAL CALENDAR - FY 2024-25

First quarter results (Unaudited) : July/August 2024 Second quarter results (Unaudited) : October/November 2024 Third quarter results (Unaudited) : January/February 2025 Annual results (Audited) : April/May 2025 43[rd] AGM : July/August 2025

RECORD DATE

Tuesday, July 16, 2024, shall be the Record date for determining the entitlement of Members for dividend for the year ended March 31, 2024, if declared at the 42[nd] AGM. Dividend shall be paid to: -

• a) beneficial owners at the end of business hours on Tuesday, July 16, 2024, as per lists furnished by Central Depository Services (I) Limited (CDSL) and National Securities Depository Limited (NSDL), in respect of shares held in electronic form; and

• b) persons whose names appear on the Register of Members as at the end of business hours on Tuesday, July 16, 2024, in respect of shares held in physical form.

234 LUPIN LIMITED | Integrated Report 2023-2024

DIVIDEND PAYMENT

Dividend, if declared shall be remitted electronically i.e. through NACH/NEFT etc., within 30 days, wherever bank details of shareholders are available and in other cases, through demand drafts.

SHARES LISTED AT

Equity shares of the Company are listed at: -

BSE Limited (BSE)

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai Samachar Marg, Mumbai - 400 001.

National Stock Exchange of India Limited (NSE)

Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

Annual Listing fees for the year 2024-25 have been paid to BSE and NSE.

STOCK CODES

The stock codes of the Company are: -

BSE: 500257

NSE: LUPIN

INTERNATIONAL SECURITIES IDENTIFICATION NUMBER (ISIN)

ISIN, an unique identification number must be quoted in each transaction relating to dematerialised shares. The ISIN of the Company is INE 326A 01037.

CORPORATE IDENTITY NUMBER (CIN)

The CIN of the Company is L24100MH1983PLC029442.

EXCLUSIVE E-MAIL ID FOR COMMUNICATION OF INVESTORS’ GRIEVANCES

The E-mail ID rnt.helpdesk@linkintime.co.in has been designated exclusively for communicating investors’ grievances, if any.

MARKET PRICE DATA

The market price data covering the year April 2023 to March 2024 is given below: -

==> picture [486 x 164] intentionally omitted <==

----- Start of picture text -----

BSE NSE
MONTH/YEAR
High (₹) Date Low (₹) Date High (₹) Date Low (₹) Date
Apr - 2023 710.70 28.04.23 644.65 03.04.23 710.35 28.04.23 644.00 03.04.23
May - 2023 813.30 30.05.23 702.20 05.05.23 813.75 30.05.23 702.40 05.05.23
Jun - 2023 908.65 30.06.23 800.05 01.06.23 908.40 30.06.23 804.80 09.06.23
Jul - 2023 992.50 31.07.23 884.90 03.07.23 992.00 31.07.23 884.25 03.07.23
Aug - 2023 1,143.70 17.08.23 974.50 02.08.23 1,143.95 17.08.23 975.00 02.08.23
Sep - 2023 1,184.00 29.09.23 1,088.30 01.09.23 1,184.70 29.09.23 1,087.35 01.09.23
Oct - 2023 1,215.20 17.10.23 1,113.00 31.10.23 1,215.40 17.10.23 1,123.00 31.10.23
Nov - 2023 1,290.00 30.11.23 1,129.00 01.11.23 1,290.00 30.11.23 1,128.00 01.11.23
Dec - 2023 1,343.55 28.12.23 1,200.35 21.12.23 1,346.85 29.12.23 1,200.15 21.12.23
Jan - 2024 1,509.40 31.01.24 1,307.70 01.01.24 1,509.95 31.01.24 1,308.65 01.01.24
Feb - 2024 1,701.00 08.02.24 1,491.05 01.02.24 1,700.00 08.02.24 1,491.05 01.02.24
Mar - 2024 1,703.80 11.03.24 1,551.50 20.03.24 1,704.25 11.03.24 1,551.60 20.03.24
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 235

DEMATERIALISATION OF SHARES AND LIQUIDITY

Trading in shares of the Company is permitted only in dematerialised form. Trading can be carried out through both the depositories, CDSL and NSDL. With a view to expedite the demat process, requests received for dematerialisation of shares are closely monitored.

Shareholders are advised to dematerialise shares held in physical form as also update details of their bank account, e-mail IDs etc. to ensure prompt disbursement of dividend amount and speedy assimilation of Company information.

During the year, demat requests received in respect of 106410 shares were electronically confirmed. As on March 31, 2024, 99.86% of the share capital of the Company was held in dematerialised form.

Shares of the Company are actively traded on BSE and NSE. Trading data for the year was as under: -

	(Value in million ₹)	(Value in million ₹)	(Value in million ₹)
Month/Year	BSE	NSE	Total
	Shares Value(₹)	Shares Value(₹)	Shares Value(₹)
Apr - 2023	883249 609.77	20999472 14,413.09	21882721 15,022.86
May - 2023	838071 640.65	23537361 18,054.07	24375432 18,694.72
Jun - 2023	1051969 892.65	26968154 22,945.26	28020123 23,837.91
Jul - 2023	702135 658.11	18390095 17,236.66	19092230 17,894.77
Aug - 2023	1589705 1,706.22	34266771 36,809.36	35856476 38,515.58
Sep - 2023	739775 841.20	20197174 22,939.10	20936949 23,780.30
Oct - 2023	740035 862.35	15556055 18,168.30	16296090 19,030.65
Nov - 2023	1762964 2,114.60	32712536 39,538.30	34475500 41,652.90
Dec - 2023	1322095 1,671.23	23499499 29,951.97	24821594 31,623.20
Jan - 2024	1906866 2,714.97	27301650 38,479.53	29208516 41,194.50
Feb - 2024 Mar - 2024	705786 1,129.96 288240 472.09	35090335 56,243.50 15804806 25,841.76	35796121 57,373.46 16093046 26,313.85
Total:	12530890 14,313.80	294323908 340,620.90	306854798 354,934.70

PERFORMANCE IN COMPARISON WITH BROAD BASED INDICES

Share price of the Company compared with S&P BSE Sensex and Nifty 50 (Month-end closing) during the year was as under: -

Month/Year	BSE	NSE
	Lupin shareprice(₹) S&P BSE Sensex	Lupin shareprice(₹) Nifty 50
Apr - 2023	708.65 61112.44	709.50 18065.00
May - 2023	804.55 62622.24	804.50 18534.40
Jun - 2023	902.70 64718.56	902.75 19189.05
Jul - 2023	985.35 66527.67	985.45 19753.80
Aug - 2023	1,095.80 64831.41	1,097.85 19253.80
Sep - 2023	1,171.55 65828.41	1,171.25 19638.30
Oct - 2023	1,128.40 63874.93	1,128.15 19079.60
Nov - 2023	1,280.90 66988.44	1,280.90 20133.15
Dec - 2023	1,323.05 72240.26	1,322.95 21731.40
Jan - 2024	1,504.95 71752.11	1,505.35 21725.70
Feb - 2024 Mar - 2024	1,618.80 72500.30 1,617.85 73651.35	1,621.05 21982.80 1,616.80 22326.90

EVOLUTION OF SHARE CAPITAL

Particulars of share capital of the Company: -

Year Allotment of shares (of the face value of ₹ 10/- each)	Total issued
	No. of shares during theyear Capital at the end of theyear(₹)
2001 - 02 40141134 shares upon amalgamation*	40141134 401411340
2006 - 07 11360 shares under ESOP (Pre - Bonus) 40152494 shares as bonus (in the ratio of 1:1) 39576 shares under ESOP (Post - Bonus)	40203430 803445640
2007 - 08 1656100 shares upon conversion of FCCB 80231 shares under ESOP	1736331 820808950
2008 - 09 571069 shares upon conversion of FCCB 167586 shares under ESOP	738655 828195500
2009 - 10 5816742 shares upon conversion of FCCB 307541 shares under ESOP	6124283 889438330
2010 - 11 170691 shares under ESOP (Pre Sub-division) Allotment of shares (of the face value of ₹ 2/-each) 628569 shares under ESOP (Post Sub-division)	1482024 892402378
2011 - 12 440492 shares under ESOP	440492 893283362
2012 - 13 887812 shares under ESOP	887812 895058986

236 LUPIN LIMITED | Integrated Report 2023-2024

Year Allotment of shares (of the face value of ₹ 10/- each)	Total issued
	No. of shares during theyear Capital at the end of theyear(₹)
2013 - 14 846311 shares under ESOP	846311 896751608
2014 - 15 1112531 shares under ESOP	1112531 898976670
2015 - 16 1094634 shares under ESOP	1094634 901165938
2016 - 17 993900 shares under ESOP	993900 903153738
2017 - 18 505981 shares under ESOP	505981 904165700
2018 - 19 410847 shares under ESOP	410847 904987394
2019 - 20 504424 shares under ESOP	504424 905996242
2020 - 21 682012 shares under ESOP	682012 907360266
2021 - 22 794881 shares under ESOP	794881 908950028
2022 – 23 506321 shares under ESOP	506321 909962670
2023 - 24 697573 shares under ESOP	697573 911357816

*Amalgamation of Lupin Laboratories Limited with Lupin Chemicals Limited whose name was changed to Lupin Limited.

SHARE TRANSFER SYSTEM

Shares of the Company are traded only in dematerialised form and are transferable through the depository system. Transmission and deletion of name of Securities held in physical form are approved by Link Intime and confirmed at meetings of the Board of directors of the Company.

As mandated by Regulation 40(9) of the Listing Regulations, a Company Secretary in practice undertakes yearly audit and the compliance certificate is submitted to BSE and NSE.

SHARE ALLOTMENT COMMITTEE

Share Allotment Committee comprises of Mrs. Manju D. Gupta, Chairman, Mr. Nilesh D. Gupta and Mr. Ramesh Swaminathan. The Committee approves allotment of fully paid-up equity shares of ₹ 2/- each to employees of the Company and its subsidiaries, upon exercising vested options granted under various employees stock option plans of the Company. The Committee met 13 times during the year and approved allotment of shares aggregating 697573. Persons authorised by the Committee complete the pre and post allotment formalities including listing of allotted shares on BSE and NSE.

UNCLAIMED SHARES

As on April 1, 2023, 800 shares of six shareholders were outstanding as unclaimed in the ‘Unclaimed Suspense Account’ of the Company. During the year, one shareholder claimed his 50 shares, which were transferred to him. Further, no shares were required to be transferred to the Investor Education & Protection Fund (‘IEPF’) authority pursuant to the provisions of Section 124(6) of the Act. Accordingly, as on March 31, 2024, 750 shares of the five shareholders continued to remain outstanding in the Unclaimed Suspense Account. Voting rights in respect of the said shares shall remain frozen till claims of the rightful shareholders are approved by the Company.

SHAREHOLDING PROFILE AS ON MARCH 31, 2024

i. Distribution of Shareholding

SHAREHOLDING PROFILE AS ON MARCH 31, 2024 i. Distribution of Shareholding
Shhldi (N f h)	Shareholders Shareholding
areong range o. o sares	Numbers %	Numbers %
1 - 500	276806 96.55	13098679 2.87
501 - 1000	4548 1.59	3400675 0.75
1001 - 2000	3076 1.07	4143486 0.91
2001 - 3000	606 0.21	1509609 0.33
3001 - 4000	255 0.09	896705 0.20
4001 - 5000	170 0.06	784056 0.17
5001 - 10000	344 0.12	2459394 0.54
10001 and above	900 0.31	429386304 94.23
Total:	286705 100.00	455678908 100.00

ii. Shareholding Pattern

ii. Shareholding Pattern
Ct	As on 31.03.2024 As on 31.03.2023
aegory	No. of shares %	No. of shares %
Promoters	214204744 47.01	214199649 47.08
Mutual Funds	76623606 16.82	77168906 16.96
Insurance Cos./Banks	45672123 10.02	53995154 11.87
Foreign Institutional Investors (FIIs)	83319552 18.28	60601842 13.32
Foreign Bodies	5000 0.00	5000 0.00
Non-Residents	1891219 0.42	2047552 0.45
Public Total:	33962664 7.45 455678908 100.00	46963232 10.32 454981335 100.00

Corporate Overview Statutory Reports Financial Statements 237

Shareholding Pattern as on March 31, 2024

==> picture [302 x 162] intentionally omitted <==

----- Start of picture text -----

Non Residents, 0.42%
Public, 7.45%
Insurance Cos./Banks, 10.02% Promoters, 47.01%
Mutual Funds, 16.82%
Foreign institutional
Investors, 18.28%
----- End of picture text -----

iii. Shareholding Profile

iii. Shareholding Profile
	Demat Physical Total
	(Nos.) % (Nos.) % (Nos.)
Shareholding	455027867 99.86 651041 0.14 455678908
Shareholders	284209 99.13 2496 0.87 286705

Holding Profile (No. of Shares)

Holding Profile (No. of Holders)

==> picture [431 x 158] intentionally omitted <==

----- Start of picture text -----

Physical, 0.14% Physical, 0.87%
Demat, 99.86% Demat, 99.13%
----- End of picture text -----

iv. Geographical spread of Shareholders

State	Shareholders Nos. % 6472 2.26	Shareholders Nos. % 6472 2.26	State	Shareholders
				Nos. %
Andhra Pradesh			Madhya Pradesh	8429 2.94
Assam	1687 0.59		Maharashtra	91594 31.95
Bihar	4367 1.52		Northeastern States	538 0.19
Chhattisgarh	1976 0.69		Orissa	3142 1.10
Delhi	15581 5.43		Punjab	4202 1.47
Goa	1709 0.60		Rajasthan	10086 3.52
Gujarat	28835 10.06		Tamilnadu	15525 5.41
Haryana	7469 2.61		Telangana	8288 2.89
Himachal Pradesh	890 0.31		Uttar Pradesh	18105 6.31
Jammu and Kashmir	643 0.22		Uttarakhand	2030 0.71
Jharkhand	3286 1.15		West Bengal	16887 5.89
Karnataka	21526 7.51		Others	6394 2.23
Kerala	7044 2.46		Total:	286705 100.00

238 LUPIN LIMITED | Integrated Report 2023-2024

DIVIDEND PROFILE

Particulars of dividend declared by the Company: -

==> picture [486 x 272] intentionally omitted <==

----- Start of picture text -----

Financial year Book closure/ Record date Dividend % per share Dividend (₹) declarationDate of pDate of ayment
2023 - 24 16.07.2024 400 8.00 02.08.2024 -
2022 - 23 14.07.2023 200 4.00 03.08.2023 08.08.2023
2021 - 22 15.07.2022 200 4.00 03.08.2022 05.08.2022
2020 - 21 28.07.2021 325 6.50 11.08.2021 17.08.2021
2019 - 20 05.08.20 - 12.08.20 300 6.00 12.08.2020 18.08.2020
2018 - 19 31.07.19 - 07.08.19 250 5.00 07.08.2019 13.08.2019
2017 - 18 01.08.18 - 08.08.18 250 5.00 08.08.2018 13.08.2018
2016 - 17 26.07.17 - 02.08.17 375 7.50 02.08.2017 05.08.2017
2015 - 16 27.07.16 - 03.08.16 375 7.50 03.08.2016 06.08.2016
2014 - 15 16.07.15 - 23.07.15 375 7.50 23.07.2015 27.07.2015
2013 - 14 (Final) 23.07.14 - 30.07.14 150 3.00 30.07.2014 31.07.2014
2013 - 14 (Interim) 14.02.14 150 3.00 03.02.2014 21.02.2014
2012 - 13 31.07.13 - 07.08.13 200 4.00 07.08.2013 08.08.2013
2011 - 12 17.07.12 - 24.07.12 160 3.20 24.07.2012 25.07.2012
2010 - 11 20.07.11 - 27.07.11 150 3.00 27.07.2011 28.07.2011
2009 - 10 21.07.10 - 28.07.10 135 13.50 28.07.2010 29.07.2010
2008 - 09 22.07.09 - 29.07.09 125 12.50 29.07.2009 30.07.2009
2007 - 08 15.07.08 - 22.07.08 100 10.00 22.07.2008 23.07.2008
2006 - 07 12.07.07 - 19.07.07 50 5.00 19.07.2007 20.07.2007
2005 - 06 11.07.06 - 12.07.06 65 6.50 25.07.2006 26.07.2006
2004 - 05 19.07.05 - 20.07.05 65 6.50 28.07.2005 29.07.2005
2003 - 04 15.07.04 - 16.07.04 65 6.50 29.07.2004 30.07.2004
2002 - 03 17.07.03 - 18.07.03 50 5.00 06.08.2003 07.08.2003
2001 - 02 (Final) 20.08.02 - 21.08.02 25 2.50 02.09.2002 03.09.2002
2001 - 02 (Interim) 07.02.02 25 2.50 17.01.2002 15.02.2002
----- End of picture text -----*

*Subject to approval by shareholders.

Notes: 1. Dividend for financial year 2006-07 onwards was on the enhanced share capital, consequent to the bonus issue in the ratio of 1:1.

2. Effective August 31, 2010, the face value of the share was reduced from ₹ 10/- each to ₹ 2/- each.

CODE OF CONDUCT FOR PREVENTION OF INSIDER TRADING

The Code of Conduct adopted by the Company, as prescribed by SEBI (Prohibition of Insider Trading) Regulations, 2015, (‘PIT Regulations’), is designed to maintain the highest ethical standards. The Code is applicable to Promoters, Directors, Key Managerial Personnel, Designated Persons (‘DPs’) and their immediate relatives. It elaborately prescribes the procedures to be followed by them while dealing in shares of the Company. In compliance with the PIT Regulations, they are prohibited from dealing in shares of the Company during the period in which the trading window is closed. To ensure easy access and increased awareness, the Code has been hosted on the Company’s intranet.

As envisaged by the PIT Regulations, the Company has adopted ‘Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information’, which has been hosted on the Company’s website www.lupin.com . Promoters, Directors, Key Managerial Personnel and DPs are restricted in dealing with the shares of the Company while in the possession of any unpublished price sensitive information.

RECONCILIATION OF SHARE CAPITAL AUDIT REPORT

As mandated by Clause 76(1) of SEBI (Depositories and Participants) Regulations, 2018, to reconcile the total admitted capital with NSDL, CDSL and those held in physical form, with the total issued, paid-up and listed capital of the Company, an audit of the share capital of the Company is conducted by a practising Company Secretary for every calendar quarter.

The Reconciliation of Share Capital Audit Report of the practising Company Secretary, inter alia, confirms that the Register of Members is duly updated and that demat/remat requests were duly confirmed to the depositories within the stipulated time. The Report also covers details of changes in the share capital during each quarter. The Report is submitted to BSE and NSE and is also placed at meetings of the Board of Directors and the Stakeholders’ Relationship Committee of the Company.

UNCLAIMED DIVIDENDS

Pursuant to the provisions of Section 124(6) of the Act read with Rule 6 of the Investor Education & Protection Fund (‘IEPF’) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, dividends declared by the Company up to the financial year 2015-16, which remained unclaimed/unpaid were transferred to the IEPF authority, as and when the same were due.

The Company sends reminders to its esteemed shareholders requesting them to claim their unclaimed/unpaid dividends before transferring the same to the IEPF authority. Unclaimed/unpaid dividends for the financial years 2016-17 onwards will be transferred to the IEPF authority, as under: -

Corporate Overview Statutory Reports Financial Statements 239

Financial Year	Date of Declaration	Due date for transfer to IEPF
2016 - 17	02.08.2017	07.09.2024
2017 - 18 2018 - 19 2019 - 20 2020 - 21 2021 - 22	08.08.2018 07.08.2019 12.08.2020 11.08.2021 03.08.2022	13.09.2025 12.09.2026 17.09.2027 16.09.2028 08.09.2029
2022 - 23	03.08.2023	08.09.2030

OUTSTANDING GDRs/ADRs/WARRANTS/CONVERTIBLE INSTRUMENTS

Stock options have been granted by the Company to its employees and those of its subsidiaries under various employee stock option plans. In compliance with SEBI (Share Based Employee Benefits) Regulations, 2014 and SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 as also in terms and conditions of the respective plans, the Company allots shares from time to time, upon the employees exercising their vested options. The Company has not issued any GDR/ADR and that no warrants and convertible instruments are outstanding.

PLANT LOCATIONS

The Company’s plants are located at: -

• i) T-142, MIDC Industrial Estate, Tarapur Industrial Area, Boisar, Dist-Palghar, Maharashtra - 401 506. ii) 198-202, New Industrial Area II, Mandideep, Dist-Raisen, Madhya Pradesh - 462 046. iii) Plot Nos. 9, 123,123/1,124, 125, GIDC Industrial Estate, Ankleshwar, Gujarat - 393 002. iv) A-28/1, MIDC Area, Chikalthana, Aurangabad, Maharashtra - 431 210. v) B-15, Phase I-A, Verna Industrial Area, Verna Salcette, Goa - 403 722. vi) EPIP, Kartholi, SIDCO Industrial Complex, Bari Brahmana, Dist-Samba, Jammu (J&K) - 181 133. vii) Gat Nos. 1156 to 1160, Village Ghotawade, Taluka Mulshi, Dist-Pune, Maharashtra - 412 115. viii)[Plots Nos. M-1, M-2, M-2A and M-3-A, Special Economic Zone, Phase - II, Misc. Zone, Apparel Park, Pithampur, Dist-Dhar, Madhya ] Pradesh - 454 775. ix) Plot Nos. 6A1, 6A2 and 6B, Sector-17, Special Economic Zone, MIHAN Notified Area, Nagpur, Maharashtra - 441 108. x) 4[th] Mile, Bhasmey Kamarey-Bhasmey Block Duga Ilaka, Dist-Pakyong, Sikkim - 737 132. Lupin Manufacturing Solutions Limited, Block 21, Village Dabhasa, Padra Taluka, Dist. Vadodara, Gujarat - 391 440 and Plot #130,

• xi) Road #11, J. N. Pharma City Parwada, Visakhapatnam, Andhra Pradesh - 531 019.

• xii) Novel Laboratories Inc., 400, Campus Drive, Somerset, New Jersey - 00873 - 1145, USA.

xiii) Laboratorios Grin S.A. de C.V., Rodriguez Saro#630, Col Del Valle, Mexico DF, CP 03100, RFC LGR8309144M3.

• xiv)[Medquimica Industria Farmaceutica LTDA, RUA FERNANDO LAMARCA, 255 - Bairro Distrito Industrial Juiz de Fora, Minas Gerais, CEP ] 36092-030, Brazil.

ADDRESS FOR CORRESPONDENCE

Members may address their queries/communications to:

Registrar and Share Transfer Agent

Link Intime India Pvt. Ltd.

Unit: Lupin Limited C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai - 400 083 Tel: (022) - 4918 6270 Toll Free No. 1800 1020 878 E-mail: rnt.helpdesk@linkintime.co.in

For and on behalf of the Board of Directors

Nilesh D. Gupta Managing Director (DIN: 01734642)

Mumbai, May 6, 2024

240 LUPIN LIMITED | Integrated Report 2023-2024

CERTIFICATE PURSUANT TO REGULATION 17(8) OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

We, Nilesh D. Gupta, Managing Director and Ramesh Swaminathan, Executive Director, Global CFO & CRO and Head – Corporate Affairs do hereby certify to the Board that: -

• (a) We have reviewed the Financial Statements and the Cash Flow Statement for the year ended March 31, 2024 and that to the best of our knowledge and belief: -

• (i) the said statements do not contain any materially untrue statements or omit any material fact, or contain statements that might be misleading; and

• (ii) the said statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.

• (b) There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the Company’s code of conduct.

• (c) We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting and have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.

• (d) We have indicated to the Auditors and the Audit Committee: -

• (i) significant changes in internal control over financial reporting during the year, if any;

• (ii) significant changes in accounting policies during the year, if any, and that the same have been disclosed in the notes to the financial statements; and

• (iii) instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the Company’s internal control system over financial reporting.

For LUPIN LIMITED

For LUPIN LIMITED

Nilesh D. Gupta Managing Director (DIN: 01734642)

Ramesh Swaminathan Executive Director, Global CFO & CRO and Head – Corporate Affairs (DIN: 01833346)

DECLARATION FOR COMPLIANCE WITH THE CODES OF CONDUCT

I hereby declare that all the Directors and the Senior Management of the Company have affirmed compliance with the Codes of Conduct as applicable to them for the year ended March 31, 2024.

For LUPIN LIMITED

Nilesh D. Gupta Managing Director (DIN: 01734642)

Corporate Overview Statutory Reports Financial Statements 241

INDEPENDENT AUDITORS’ CERTIFICATE ON COMPLIANCE WITH THE CORPORATE GOVERNANCE REQUIREMENTS UNDER SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

To the Members of Lupin Limited

1. This certificate is issued in accordance with the terms of our engagement letter dated 15 September 2021 and addendum to the engagement letter dated 9 May 2023.

2. We have examined the compliance of conditions of Corporate Governance by Lupin Limited (“the Company”), for the year ended 31[st] March 2024, as stipulated in regulations 17 to 27, clauses (b) to (i) of regulation 46(2) and paragraphs C, D and E of Schedule V of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time (“Listing Regulations”) pursuant to the Listing Agreement of the Company with Stock Exchanges.

Management’s Responsibility

3. The compliance of conditions of Corporate Governance as stipulated under the listing regulations is the responsibility of the Company’s Management including the preparation and maintenance of all the relevant records and documents. This responsibility includes the design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of Corporate Governance stipulated in the Listing Regulations.

Auditors’ Responsibility

4. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

5. Pursuant to the requirements of the Listing Regulations, it is our responsibility to provide a reasonable assurance whether the Company has complied with the conditions of Corporate Governance as stipulated in Listing Regulations for the year ended 31 March 2024.

6. We conducted our examination of the above corporate governance compliance by the Company in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) and Guidance Note on Certification of Corporate Governance both issued by the Institute of the Chartered Accountants of India (the “ICAI”), in so far as applicable for the purpose of this certificate. The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.

7. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Regulations.

9. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

Restriction on use

10. The certificate is addressed and provided to the Members of the Company solely for the purpose of enabling the Company to comply with the requirement of the Listing Regulations and should not be used by any other person or for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.

For B S R & Co LLP Chartered Accountants Firm’s Registration No: 101248W/W-100022

Sudhir Soni Partner Membership No. 41870 UDIN: 24041870BKGDKL5671

Mumbai, May 6, 2024

242 LUPIN LIMITED | Integrated Report 2023-2024

Business Responsibility & Sustainability Report (BRSR) FY24

Section A: General Disclosures

==> picture [486 x 237] intentionally omitted <==

----- Start of picture text -----

I. Details of the listed entity
1. Corporate Identity Number (CIN) of the Listed Entity L24100MH1983PLC029442
2. Name of the Listed Entity Lupin Limited
3. Year of incorporation 1983
4. Registered office address Kalpataru Inspire, 3 [rd] Floor, Off Western Express Highway,
Santacruz (East), Mumbai - 400 055. India
5. Corporate address Kalpataru Inspire, 3Santacruz (East), Mumbai - 400 055. India [rd] Floor, Off Western Express Highway,
6. E-mail hosecreterial@lupin.com
7. Telephone + 91 22 6640 2323
8. Website www.lupin.com
9. Financial year for which reporting is being done FY 2023-24
10. Name of the Stock Exchange(s) where shares are listed BSE and NSE
11. Paid-up Capital ₹ 911.4 mn.
Name and contact details (telephone, email address) of the Ramesh Swaminathan, Executive Director, Global CFO & CRO
12. person who may be contacted in case of any queries on the and Head – Corporate Affairs +91 22 6640 2323, hosecretarial@
BRSR report lupin.com
13. Reporting Boundary Standalone
14 Name of assurance provider DNV Business Assurance India Private Limited
15 Type of assurance obtained Reasonable Assurance for Core Indicators
----- End of picture text -----

II. Products/services

16. Details of business activities (accounting for 90% of the turnover):

Sl. No.	Description of Main Activity	Description of Business Activity	% of Turnover of the entity
1	Manufacture of Pharmaceuticals	Manufacturing and sales of Pharmaceuticals	97.61%
17.	Products/Services sold by the entity	(accounting for 90% of the entity’s Turnover):
Sl. No.	Product/Service	NIC Code	% of total Turnover contributed
1	Manufacture of Pharmaceuticals	210 Medical and Healthcare	100

III. Operations

III. Operations	III. Operations	III. Operations
18. Number of locations where plants and/or operations/offices of the entity are situated:
Location	Number of plants	Number of offices	Total
National	12	4	16
International	3	7	10
19. Markets served by the entity:
a. Number of locations
Locations			Number
National (No. of States)			28 and 8 Union territories
International (No. of Countries)			65

Corporate Overview Statutory Reports Financial Statements 243

b. What is the contribution of exports as a percentage of the total turnover of the entity?

• Of the total sale of ₹ 143,164.3 million, 51.6% comprises of export sales.

c. A brief on types of customers

• Customers are a vital part of our growth strategy and value chain. We operate worldwide, serving multiple health sectors such as cardiology, respiratory, diabetes, gynecology, and gastrointestinal, aiding a wide range of patients. Our customer base encompasses wholesalers, distributors, pharmacy networks, individual patients, medical practitioners, hospitals, governmental bodies, and fellow pharmaceutical firms. Our commitment lies in providing effective, high-quality generic pharmaceutical ingredients and products to our partners and global healthcare networks.

IV. Employees

20. Details as at the end of Financial Year:

• a. Employees and workers (including differently abled):

==> picture [486 x 302] intentionally omitted <==

----- Start of picture text -----

Sl. Male Female
No. Particulars Total (A) No. (B) % (B/A) No. (C) % (C/A)
EMPLOYEES
1. Permanent (D) 18256 17273 95% 983 5%
2. Other than Permanent (E) 393 232 59% 161 41%
3. Total employees(D + E) 18649 17505 94% 1144 6%
WORKERS
4. Permanent (F) 954 942 99% 12 1%
5. Other than Permanent (G) 259 221 85% 38 15%
6. Total workers (F + G) 1213 1163 96% 50 4%
b. Differently abled Employees and workers:
Sl. Male Female
No. Particulars Total (A) No. (B) % (B/A) No. (C) % (C/A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 5 5 100% 0 0
2. Other than Permanent (E) 0 0 0 0 0
3. Total differently abled 5 5 100% 0 0
employees (D + E)
DIFFERENTLY ABLED WORKERS
4. Permanent (F) 0 0 0 0 0
5. Other than permanent (G) 1 1 100% 0 0
6. Total differently abled 1 1 100% 0 0
workers (F + G)
----- End of picture text -----

21. Participation/Inclusion/Representation of women

Total (A)	No. and percentage of Females
	No. (B) % (B / A)
Board of Directors 8 Key Management Personnel 4	3 37.5 1 25

22. Turnover Rate (in %) for permanent employees and workers (Disclose trends for the past 3 years)

	FY 2023-24	FY 2022-23	FY 2021-22
	Male Female Total	Male Female Total	Male Female Total
Permanent Employees Permanent Workers	18.36% 22.50% 19% 8% 8% 8%	24.31% 27.35% 24.47% 12.4% 0 12.21%	- - - - - -

244 LUPIN LIMITED | Integrated Report 2023-2024

V. Holding, Subsidiary and Associate Companies (including joint ventures)

23. (a) Names of holding/subsidiary/associate companies/joint ventures

==> picture [486 x 583] intentionally omitted <==

----- Start of picture text -----

Sl. Name of the holding/ Indicate whether holding/ % of shares Does the entity indicated at column A,
No. subsidiary/associate companies/ Subsidiary/Associate/ held by listed participate in the Business Responsibility
joint ventures (A) Joint Venture entity initiatives of the listed entity? (Yes/No)
1 Lupin Inc., USA Subsidiary 100% No
2 Lupin Pharmaceuticals Inc., USA Subsidiary 100% No
3 Pharma Dynamics (Proprietary) Subsidiary 100% No
Limited, South Africa
4 Hormosan Pharma GmbH, Germany Subsidiary 100% No
5 Multicare Pharmaceuticals Subsidiary 51% No
Philippines, Inc., Philippines
6 Generic Health Pty Limited, Australia Subsidiary 100% No
7 Naomi B.V., Netherlands Subsidiary 100% No
8 Lupin Atlantis Holdings SA, Subsidiary 100% No
Switzerland
9 Lupin Healthcare (UK) Limited, UK Subsidiary 100% No
10 Lupin Australia Pty Limited, Australia Subsidiary 100% No
11 Lupin Pharma Canada Limited, Subsidiary 100% No
Canada
12 Lupin Mexico S.A. de C.V., Mexico Subsidiary 100% No
13 Bellwether Pharma Pty Limited, Subsidiary 100% No
Australia
14 Lupin Philippines Inc., Philippines Subsidiary 100% No
15 Lupin Diagnostics Limited, India Subsidiary 100% No
16 Generic Health SDN. BHD., Malaysia Subsidiary 100% No
17 Laboratories Grin S.A. de C.V., Mexico Subsidiary 100% No
18 Medquimica Industria Farmaceutica Subsidiary 100% No
LTDA, Brazil
19 Novel Laboratories, Inc., USA Subsidiary 100% No
20 Lupin Research Inc., USA Subsidiary 100% No
21 Avenue Coral Springs, LLC, USA Subsidiary 100% No
22 Lupin Management, Inc., USA Subsidiary 100% No
23 Lupin Europe GmbH, Germany Subsidiary 100% No
24 Lupin Biologics Limited, India Subsidiary 100% No
25 Lupin Oncology Inc., USA Subsidiary 99.33% No
26 Lupin Digital Health Limited, India Subsidiary 100% No
27 Southern Cross Pharma Pty Ltd., Subsidiary 100% No
Australia
28 YL Biologics Ltd., Japan Joint Venture 45% No
29 Lupin Foundation, India Subsidiary 100% No
30 Medisol S.A.S., France Subsidiary 100% No
31 Lymed S.A.S., France Subsidiary 100% No
32 Lupin Manufacturing Solutions Subsidiary 100% No
Limited, India
33 Lupin Life Sciences Limited Subsidiary 100% No
----- End of picture text -----

• VI. CSR Details

24. i. Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes

• ii. Turnover (in ₹): 143,164.3 million

• iii. Net worth (in ₹): 206,030.9 million

Corporate Overview Statutory Reports Financial Statements 245

VII. Transparency and Disclosures Compliances

25. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Conduct:
	FY 2024 FY 2023
Stakeholder group from whom complaint is received Grievance Redressal Mechanism in Place (Yes/No) (If Yes, then provide web-link for grievance redress policy)	Number of complaints filed during the year Number of complaints pending resolution at close of the year Remarks	Number of complaints filed during the year Number of complaints pending resolution at close of the year Remarks
Communities There is a hotline available to address any concerns or issues that may arise.	4 0	0 0
Investors (other than shareholders) https://www.lupin.com/investors/	0 0	0 0
Shareholders https://www.lupin.com/investors/	36 0	20 0
Employees and workers Yes https://www.lupin.com/pdf/ Whistleblower-Policy.pdf	13 3	2 0
Customers https://lupinindia. azurewebsites.net/ contact-us/	33502 128	30000 0
Value Chain Partners Yes https://www.lupin. com/wp-content/ uploads/2022/08/third-party-codeof- onduct-policysigned.pdf	3 1	0 0
Other (please specify)	24 10	0 0

26. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per the following format

Sl. No.	Material identified issue	Indicate whether	Rationale for identifying the risk/opportunity	In case of risk, approach to adapt or mitigate	Financial implications of the risk or opportunity (Indicate
		risk or			positive or negative
		opportunity (R/O)			implications)
1	Pollution	Risk	The manufacturing	We are continuously identifying	Negative
			processes can result in the release of harmful chemicals and waste into the environment, contaminating air, water, and soil. This pollution not only endangers ecosystems but also has potential health implications for communities living nearby.	opportunities to effectively manage our environmental impact through pollution control measures. We are continuously monitoring our air emissions, GHG emissions wastewater generation. We are focusing on efficient water consumption, reducing water withdrawal and increasing water recovery. For waste management, we are focusing on increasing the share	Air and water contamination can lead to health and safety issues for surrounding communities, flora and fauna, and lead to adverse legal, regulatory and financial consequences, loss of reputation and stakeholder trust, ultimately leading to a loss of license to operate.
				of recycling and reuse within our own
				operations, and co-processing of
2	Water Management	Opportunity	By continuing high water consumption in areas of water stress, the risk of increase in operational costs continue to rise, this can lead to issues in manufacturing capabilities which can lead to an overall loss in revenue.	hazardous waste. We have established targets to recycle water consumption by 50% by 2030. We have implemented Zero Liquid Discharge at 6 of our sites and treating any waste water produced during manufacturing.We are also taking steps for responsible use of water in areas of high water stress we aim to reduce the water burden.	Negative Increased water stress may affect nearby communities and productivity of manufacturing sites leading to regulatory and financial consequences.

246 LUPIN LIMITED | Integrated Report 2023-2024

Sl. No.	Material identified issue	Indicate whether	Rationale for identifying the risk/opportunity	In case of risk, approach to adapt or mitigate	Financial implications of the risk or opportunity (Indicate
		risk or			positive or negative
		opportunity (R/O)			implications)
3	Pharmaceuticals in environment/ Anti Microbial Resistance (AMR)	Risk	Inaction from Lupin as a pharma company towards AMR stewardship can lead to loss in reputation which in turn leads to loss in customer loyalty and customers.	We actively assess the ecological impact of the Active Pharmaceutical Ingredients (APIs) used in the manufacturing processes, discharge into water bodies, potential bioaccumulation in ecosystems, and overall toxicity to organisms. We frequently analyze the Anti Microbial contents in the treated water discharges and ensure that the PNEC values of those AMRs are below the limit of quantification. 6 out of 13 manufacturing plants are Zero Liquid discharge plants where in the treated effluent is recycled in the utilities and there is no discharge outside	Negative AMR can leads to higher mortality rates as infections that were once treatable become resistant to antibiotics, making them harder to cure, resulting in prolonged illnesses and increased complications. Resistant bacteria can spread within communities and healthcare settings, leading to outbreaks that are difficult to control.
				the premises. Additionally, we are
				undertaking life cycle assessments of
				Top-10 revenue generating products
				across the value chain to understand
				the cumulative environmental impact
				of APIs in the cradle to gate approach.
				The life cycle assessments will help us to
				assess the opportunities for reducing the
				ecological footprint.
4 5 6	Waste Minimization Green Chemistry Customer Health and Safety	Risk Opportunity Opportunity	Directing more waste to landfills and incinerators will increase the company’s contribution to air pollution and GHG emissions, along with underground water eutrophication. Investing in green chemistry and inculcating sustainable manufacturing processes can lead to an optimized and efficient manufacturing process. This can have a positive impact on revenues and in turn help increase investments in better tools and technologies. By providing safe and effective drugs the brand loyalty amongst customers increases and leads to greater revenues and builds trust between the company and society.	Our approach to waste management is guided by the 3R principle of ‘Reduce, Reuse and Recycle. Our waste streams, which include hazardous waste, non- hazardous waste, e-waste, biomedical waste, and others, are inventoried periodically and are sent to third parties for recycling/disposal in compliance with applicable government regulations.	Negative Improper waste management can lead to material wastage, fines and compliance penalties. Positive By bringing down product carbon and water footprints, reducing use of hazardous chemicals and solvents and replacing them with renewable green solvents and feedstocks, we stand to benefit both environmentally and economically. Positive Propagating customer safety initiatives builds trust with customers, lowers healthcare costs and positively impacts revenue.
7	Occupational	Risk	Providing for a safe work	All our sites are ISO18001 certified and	Positive
	Health and Safety		environment brings about high levels of employee satisfaction and ensures that they can achieve their highest potential. Ineffective management of health and	have management systems in place for avoiding unsafe incidents. Regular training is given to all site teams to mitigate unsafe acts and report on unsafe incidents. Employees are encouraged to report on near misses and potential near misses	Having a robust strategy to ensure occupational health and safety will lead to higher employee productivity along with higher retention rates.
			safety practices can lead	to avoid any future incidents. Industrial
			to a high number of safety	hygiene & personnel safety standards are
			related incidents. An unsafe	maintained as per global best practices to
			workplace can cause	keep the workplace safe.
			distress and has potential reputational & revenue loss for the organization.	Our record state that our incident rate & accident rate are reducing YoY in line with our commitment for the same.

Corporate Overview Statutory Reports Financial Statements 247

==> picture [486 x 670] intentionally omitted <==

----- Start of picture text -----

Sl. Material Indicate Rationale for identifying In case of risk, approach to adapt or Financial implications of the
No. identified issue whether the risk/opportunity mitigate risk or opportunity (Indicate
risk or positive or negative
opportunity implications)
(R/O)
8 Human Rights Risk Without proper safeguards We have established policies and Negative
for employee human rights safeguards to ensure the protection
Violation of human rights
protections, the company of human rights for each of our
has a significant impact on
will lose reputation and employee’s and workers, our code of
the companies credibility
credibility in the market conduct outlines Lupin’s stance on the and can lead to harsh
and see a drastic drop in protection of human rights and actions
revenues. and redressals that are available to our penalties, litigation and
have a significant dent on
employee’s incase they feel like their stakeholder confidence.
human rights have been infringed.
9 Human Capital Opportunity By providing training Positive
Development and flexibility in work
By developing resources, the
methods to employee’s the
company can lower hiring
company will see growth
in all facets. This will have costs, and generate more
internal mobility.
a positive contribution to
revenues and credibility
of the company within the
pharma market.
10 Product Opportunity By extending our scope Positive
Accessibility of access to high disease Product innovation and
and burden nations, we can
research efforts enhance the
Affordability build positive trust within
brand value by offering a
society. It also leads to
wide range of products that
greater opportunities for
are both easily accessible
developing supply chains
and reasonably priced. These
in untapped markets
products enable us to cater to
while increasing credibility
unmet patient needs and also
amongst our stakeholders. facilitates access for low and
middle income countries.
11 Responsible Opportunity Having a responsible supply Positive
Supply Chain chain leads to lower costs
By responsible supply chain
Management in maintaining long term
practices the company is
partners and an overall
increase in revenue due ready to deal with supply
to a more robust flow of chain disruptions brought
on by unprecedented
products.
circumstances. In addition,
the Company’s adherence
to its responsible sourcing
enhances its social and
environmental performance.
12 Compliance Opportunity By inculcating industry best Positive
(Regulatory & practices and creating
Ethical) a governance structure By following best practices
and ensuring compliance, the
around compliance
company avoids fines and
ensures that the company’s builds trust with customers
credibility remains intact. and within stakeholders.
13 Business Ethics: Opportunity Ensuring that governance Positive
Anti-bribery practices and policies
Having robust governance
and corruption are in place to maintain
ethical business conduct strategies and policies drives
and minimise conflicts compliance and ensures
of interest can lead to the good standing of the
the company expanding company.
business in new markets
and having a positive
compliance portfolio.
14 Data Privacy Risk Information protection risks We are ISO 27001 certified and conduct Negative
and Protection have become more critical regular checks of our data. We also
due to the shift to remote provide employee’s and workers with An attack on Lupin’s IT
systems or failure to comply
work driven by the COVID-19 extensive training on the handling
with data privacy laws
pandemic. The increased and use of company data to ensure can lead to the loss of vital
reliance on digital maximum protection.
communication and data business intelligence, financial
setbacks, and reputational
sharing has heightened
damage.
the company's exposure to
cyber threats.
----- End of picture text -----

248 LUPIN LIMITED | Integrated Report 2023-2024

Sl. No.	Material identified issue	Indicate whether	Rationale for identifying the risk/opportunity	In case of risk, approach to adapt or mitigate	Financial implications of the risk or opportunity (Indicate
		risk or			positive or negative
		opportunity (R/O)			implications)
15	Ethical	Risk	Miscommunicating drug	By having a ethical marketing policy,	Negative
	Marketing and Product Labeling		uses or prescriptions along with any incorrect labeling can cause serious harm to patients health and safety, which has reputational risks alongside risks related to	audits and unique identifiers we ensure the company and its partners are able to identify any miscommunication of usages for drugs produced by the company.	Miscommunication and improper labellling of product use can lead to customer health and safety issues and fines.
			loss in revenues.
16	Combatting Counterfeit Medicines	Opportunity	By ensuring traceability and authenticity of the drug we can create a strong impression in the market as overseers. This leads to a boost in the company’s credibility.		Positive Curtailing the distribution counterfeit medicines ensures accountability and avoids product recall costs.
17	Risk	Opportunity	A robust risk management		Positive
	Management And Business Continuity		and Business Continuity plan will uphold credibility and trust in the company's long term compliance		This ensures that the company does not incur compliance related penalties.
			portfolio.

Corporate Overview Statutory Reports Financial Statements 249

Section B: Management And Process Disclosures

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements.

Disclosure Questions P 1 P 2	Disclosure Questions P 1 P 2	P 3	P 4	P 5	P 6	P 7	P 8	P 9
Policy and management processes
1. a. Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No) Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
b. Has the policy been approved by the Board? (Yes/No) Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
c. Web Link of the Policies, if available All business responsibility policies are made publicly available to all our stakeholders via our company website P1 – P9 - Lupin Code of Conduct https://www.lupin.com/investors/code-of-conduct/ P1 - Whistleblower Policy https://www.lupin.com/wp-content/uploads/2022/02/Whistleblower-Policy-Website.pdf P2 – Refer to Third Party Code of Conduct https://www.lupin.com/wp-content/uploads/2022/08/third-party-code-of-onduct-policy- signed.pdf P3 – P5 – Refer to Human Rights Policy https://www.lupin.com/wp-content/uploads/2022/08/human-rights-policy-signed.pdf P4, P7, P8 – Refer to Corporate Social Responsibility Policy https://www.lupin.com/wp-content/uploads/2021/10/csr-policy.pdf P6 – Refer to EHSS Policy https://www.lupin.com/wp-content/uploads/2022/08/environment-health-safety-and- sustainabilitypolicy-signed-rev.pdf P9 - Refer to Privacy Policy https://www.lupin.com/privacy-policy/
2. Whether the entity has translated the policy into procedures. (Yes/No) Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
3. Do the enlisted policies extend to your value chain partners? (Yes/No) Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
4. Name of the national and international codes/certifications/labels/standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trustea) standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle. The company has received the following certifications: 1. ISO 8 Class 100,000 Clean Rooms Standards. 2. Good Manufacturing Practice (GMP) compliance across facilities. 3. Several facilities have received US FDA, UK MHRA, WHO, and Japanese PDMA accreditations. 4. ISO 14001Certification for all Indian sites. 5. ISO 45001 Certification for all Indian sites.
5. Specific commitments, goals and targets set by the entity with defined timelines, if any. 1. Environmental Targets • Reduce direct and indirect GHG emissions by 38% (Baseline year of FY 22-23) by 2030. • Decarbonize in alignment with our decarbonization strategy and Scope 3 reduction objectives • Recycle 50% of the total water withdrawn in Indian sites by 2025. • Redirect 70% of total incinerable hazardous waste generated in operations in India for co-processing, such as cement plants by 2025. 2. Product Accessibility and Affordability Access to Medicines • Targeting 80+ registrations of anti-TB and ARV medicines in 2024. Implementation of Patient Assistance Programs • Two programs by 2025, benefitting 100,000 patients each. Education for Patients and Doctors • Reaching 1 million Patients by 2028 and 20,000 doctors by 2030. Local Manufacturing Partnership • Developing partnerships in Africa by 2027 to improve accessibility. 3. Innovation Management Product Launches • Complex product launches in the areas of inhalation, injectables, among others. Product Portfolio • Portfolio should be more than 70% complex dosage forms by 2024 Biosimilar and Novel Complex Products • Complete 3 biosimilar filings in regulated markets by 2028 4. Patient Centricity Diagnosis • By 2030, assist in the diagnosis of lung disease using fractional exhaled nitric oxide (FENO) and Spirometry tests for more than 1 million patients. • Target the diagnosis of breast cancer in 1,400 women in FY24.

250 LUPIN LIMITED | Integrated Report 2023-2024

Rehabilitation

• “Lungs on Care” campaign: Provide in-clinic services for Interstitial Lung Diseases (ILD) rehabilitation in 300 clinics by 2030.

• Atharv Ability, our neuro rehabilitation center is targeting an outreach to 10,000 patients in FY24.

End to End Care

• Lyfe provides post-ACSz (acute coronary syndrome) patient care, aiming to reach 25,000 patients in FY24.

• 5. Process/Open Innovations

5.	Process/Open Innovations
	• Target 15-20 process innovations annually, resulting in $2-3 million in savings.
	• Pursue open innovation partnerships in API, formulations, digital solutions, and
	diagnostics.
6.	Social
	• Diversity target: 15% women employees across all business units by 2030
	• Conduct accessibility audit for PWD for all India locations by 2030
	• Achieve & maintain an employee satisfaction score of 80% or higher on annual
	surveys by 2025
	• Achieve 50,000 hours of employee volunteering by 2030
	• 10% year-on-year reduction in the Lost Time Injury Frequency Rate (LTIFR), Accident
	Frequency Rate, and Incident Frequency Rate
7.	Driving Regulatory Compliance, Quality, and Patient Safety
	Data Integrity
	• No data integrity-related observations in any regulatory audits.
	Warning Letters
	• Zero sites with Warning Letter status (WL) by FY25.
	cGMP Training
	• Ensure 100% completion of mandatory training for all employees.
	Quality
	• Maintain zero class I recalls.
	• Lupin’s India sites undergo annual audits, while supplier sites are audited every three
	years and during vendor qualification.
8.	Supply Chain
	• Undertaking ESG assessment of Critical Tier 1 Direct Material manufacturers (i.e top 80% direct material manufacturers by spend)
	• Considering ESG aspects for onboarding new vendors by 2025
6. Performance of the entity against the specific commitments, goals and targets along-with reasons in case the same are not met. To continuously progress in its journey towards sustainability conducting business, the company has taken various measures across segments, some of which have also received external recognition: Environment • Reduced 20.8% of scope 1 and scope 2 emissions in our global operations • Recycled and Reused 43.8% of the total water withdrawn in Indian sites • In FY24, we sent 7,332 MT (89.4%) of incinerable hazardous waste for co-processing, as compared to 4,175 MT (60.9%) in FY23 Product Accessibility and Affordability • In FY24, we have secured over 80+ registrations of anti-TB and ARV medicines across various nations. • Three patient assistance programs launched benefitting 29,383 patients • Educated 557,013 patients and 9,247 doctors Patient Centricity • Completed diagnosis of lung disease in 874,212 patients • Diagnosed breast cancer in 2,700 women, crossing the goal set. • Provided in-clinic services for ILD rehabilitation in 50 clinics • Atharv Ability services helped 19,448 patients. • Lyfe reached 2,988 patients Innovation Management • 2 in pipeline and cloning and process development was completed. • 2 directed towards the India market. • Recruitment completed in the phase III trial of a biosimilar. • Agreement signed for the commercialization of a biosimilar in the MENA region. Social • Gender diversity: 7% of Lupin Limited’s employees are women. • Our LTIFR rate for FY24 stands at 0.07, Accident frequency rate= 2.08, Incident frequency rate = 0.88 and Severity rate = 3.10. Y-o-Y reduction achieved- LTIFR: 4%, AFR: 26%, IFR: 21%. • Achieved an employee satisfaction score of 80% • Spent 19188 hours in employee volunteeringaspart of communityinitiative

Corporate Overview Statutory Reports Financial Statements 251

==> picture [160 x 135] intentionally omitted <==

• Process/Open Innovations • Continuous exploration for new ideas, breakthrough concepts, and perspectives has instigated innovative thinking in the process development team; to create simple and safe processes with new solutions and approaches. The implementation of the ideas in top leadership molecules’ ideas has led to the creation of value of approx. 10 million USD.

Driving Regulatory Compliance, Quality, and Patient Safety

• 2 sites with Warning Letter status (WL)

• 1 class I recall • 10090 employees trained on Data Integrity SOP and annual CGMP training across manufacturing sites.

• Supply Chain

• ESG assessment completed for ~300 Tier 1 suppliers

• Implementation initiated on supplier onboarding platform

Governance, Leadership and Oversight	Governance, Leadership and Oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity has flexibility regarding the placement of this disclosure) Please refer to the CFO message on page numberXXprovided in the Integrated Report FY24.
8. Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy (ies). Ramesh Swaminathan, Executive Director, Global CFO & CRO and Head – Corporate Affairs
9. Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability related issues? (Yes/No). If yes, provide details. Yes, The Company consistently monitors its ESG performance, which undergoes review by the ESG Core Committee. Oversight of sustainability matters falls under the responsibility of the CFO, who leads decision-making. Monthly meetings are held to discuss progress and actions on ESG initiatives, targets, and implementation.
10. Details of Review of NGRBCs by the Company:
Subject for Review Indicate whether review was undertaken by Director/Committee of the Board/Any other Committee P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9	Frequency (Annually/ Half yearly/ Quarterly/ Any other – please specify)
	P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9
Performance against above policies and follow up action The ESG Committee consistently monitors the Company’s performance across all nine principles of the NGRBC, with periodic reviews conducted by the CFO and relevant departmental heads.
Compliance with statutory requirements of relevance to the principles, and, rectification of any non-compliances Lupin endeavors to uphold strict adherence and compliance with the laws in all regions where we operate. We ensure compliance with statutes and regulations related to the nine principles of the NGRBC. This marks the third year of our BRSR reporting, aimed at revealing our performance concerning the nine principles of the BRSR.
11. Has the entity carried out independent assessment/evaluation of the working of its policies by an external agency? (Yes/No). If yes, provide the name of the agency. P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9 No
12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
Questions P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9
The entity does not consider the Principles material to its business (Yes/No) Not Applicable The entity is not at a stage where it is in a position to formulate and implement the policies on specified principles (Yes/No) The entity does not have the financial or/ human and technical resources available for the task (Yes/No) It is planned to be done in the next financial year (Yes/No) Anyother reason(please specify)

252 LUPIN LIMITED | Integrated Report 2023-2024

Section C: Principle Wise Performance Disclosure

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible.

PRINCIPLE 1

Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable.

Essential Indicators

PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable. Essential Indicators	PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable. Essential Indicators	PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable. Essential Indicators	PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable. Essential Indicators	PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable. Essential Indicators	PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable. Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:
Segment	Total number of training and Topics/principles covered under the			% of persons in respective category
	awarenessprogrammes held training and its impact			covered by awarenessprogrammes
			1. Whistle Blower mechanism
			2. Anti – Retaliation
			3. Conflict of Interest
Board of Directors		2	4. Gift, Entertainment & Hospitality 5. Workplace Harassment		100%
			6. Working with Third Parties
			7. Making commitment to the Lupin CODE
			of Conduct & its principles
			8. ESG
Key Managerial Personnel Employees other than BoD and KMPs Workers		2 5 5	1. Whistle Blower mechanism 2. Anti – Retaliation 3. Conflict of Interest 4. Gift, Entertainment & Hospitality 5. Workplace Harassment 6. Working with Third Parties 7. Making commitment to the Lupin CODE of Conduct & its principles 8. ESG 1. Human Rights 2. POSH 3. SOP trainings through SABA 4. Kavach 5. HR Policies 1. Human Rights 2. POSH 3. SOP trainings through SABA (on rolls only) 4. Kavach 5. HR Policies		100% 99.61% 100%
2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the
financial year, in the following format
(Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI
(Listing Obligations and Disclosure Requirements Regulations, 2015 and as disclosed on the entity’s website):
			Monetary
Particulars		NGRBC Principle	Name of the regulatory/ enforcement agencies/judicial Amount (In INR)	Brief of the Case	Has an appeal been preferred? (Yes/No)
			institutions
Penalty/ Fine
Settlement			Nil
Compounding fee
			Non-Monetary
Particulars		NGRBC Principle	Name of the regulatory/enforcement agencies/ judicial institutions	Brief of the Case	Has an appeal been preferred? (Yes/No)
Imprisonment			Nil
Punishment

Corporate Overview Statutory Reports Financial Statements 253

3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or nonmonetary action has been appealed.

Not Applicable

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a weblink to the policy.

The Company does not have a separate anti-bribery and corruption policy, but its code of conduct emphasizes a commitment to combating bribery and corruption. This commitment extends to all subsidiaries, associates, and business partners. Lupin unequivocally prohibits any instances of bribery and corruption in its operations, striving to conduct business in an ethical and transparent manner. Various internal controls, such as audits, internal reviews, a ban on political contributions, regular compliance checks, and a whistleblower policy, are in place to prevent unethical behavior by the company or its employees. Lupin fosters a culture of thorough deliberation, transparency, and fairness in its interactions with stakeholders and the public. This policy is an integral part of the Code of Business Conduct and Ethics, applicable to all employees, senior management, and the board of directors. It is publicly accessible on the company’s website at https://www.lupin.com/investors/code-of-conduct/.

5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/corruption:

for the charges of bribery/corruption:
Particulars	FY	2023-24	FY	2022-23
Directors		0		0
KMPs Employees Workers		0 0 0		0 0 0

6. Details of complaints with regard to conflict of interest:

6. Details of complaints with regard to conflict of interest:
Ptil	FY 2023-24 FY 2022-23
arcuars	Number Remarks	Number Remarks
Number of complaints received in relation to issues of Conflict of Interest of the Directors Number of complaints received in relation to issues of Conflict of Interest of the KMPs	0 Not Applicable 0 Not Applicable	0 Not Applicable 0 Not Applicable

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest. Not Applicable.

8. Number of days of accounts payables:

Not Applicable. 8. Number of days of accounts payables:
Particulars	FY 2023-24	FY 2022-23
Number of days of accounts payables	76	58

9. Open-ness of business

Provide details of concentration of purchases and sales with trading houses, dealers and related parties along-with loans and advances & investments, with related parties in the following format:

==> picture [486 x 175] intentionally omitted <==

----- Start of picture text -----

Parameter Metrics FY 2023-24 FY 2022-23
Concentration of a. Purchases from trading houses as % of total purchases 14.60% Not Applicable
Purchases
b. Number of trading houses where purchases are made from 389 Not Applicable
c. Purchases from top 10 trading houses as % of total purchases from trading 67.3% Not Applicable
houses
Concentration of a. Sales to dealers/distributors as % of total sales 44.63% 53.81%
Sales
b. Number of dealers/distributors to whom sales are made 7887 6998
c. Sales to top 10 dealers/distributors as % of total sales to dealers/distributors 5.18% 4.98%
Share of RPTs in a. Purchases (Purchases with related parties/Total Purchases) 30.51% 24.32%
b. Sales (Sales to related parties/Total Sales) 35.5% 27.60%
- -
c. Loans & advances (Loans & advances given to related parties/Total loans &
advances)
d. Investments (Investments in related parties/Total Investments made) 99.41% 100%
----- End of picture text -----

254 LUPIN LIMITED | Integrated Report 2023-2024

Leadership Indicators

	Leadership Indicators	Leadership Indicators
1. Awareness	programmes conducted for value chain partners on any of the Principles during the financial year:
Total number	Topics/principles covered under the training	% age of value chain partners covered (by value of
of awareness		business done with such partners) under the awareness
programmes		programmes
held
7	- What is ESG and why is it important?	100% of strategic and critical material suppliers
	- Overview of ESG regulations (across countries)
	- Various aspects of E,S & G

2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If Yes, provide details of the same.

Yes, Lupin has clearly defined policies and the Code of Conduct outlines how conflict of interest should be managed. These policies are communicated to all board members and regularly reviewed and updated as needed. Board members are required to disclose any potential conflicts of interest, such as financial interests in a company doing business with the organization, relationships with vendors, or personal interests that may conflict with the organization’s interest.

PRINCIPLE 2

Businesses should provide goods and services in a manner that is sustainable and safe

Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.

Particulars	FY 2023-24	FY 2022-23	Details of improvements in environmental social impacts
R&D	₹ 15,264.2 million	₹ 12,800 million	For details on environmental and social benefits driven by the Company,
Capex	₹ 776 million	₹ 136 million	please refer to chapters - Intellectual Capital, Social Capital and Natural Capital in the Integrated Report FY24.

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No) Yes

• b. If yes, what percentage of inputs were sourced sustainably?

The Company has implemented appropriate measures to ensure sustainable sourcing practices. Desk-based screening has been completed for 309 Tier 1 suppliers. Within its Third Party Code of Conduct, Lupin mandates that all business partners adhere to fundamental sustainability criteria encompassing labor rights, health and safety standards, environmental considerations, ethical behavior, data privacy, and more. Lupin has classified its suppliers into categories such as Strategic, Critical, Leverage, and Routine, and regularly evaluates them to identify, minimize, and address risks effectively.

3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.

We have established appropriate waste management systems across all our facilities. Our waste disposal processes adhere to local regulations and prioritize minimizing the amount of waste sent to landfills.

Waste type	Waste management procedure in place
Plastic (including packaging)	Either co-processed or recycled based on the type of waste
	generated.
E-waste Hazardous waste Other waste (wastepaper and paper products)	Sold to authorized recyclers for safe disposal. Sent to authorized recyclers/Pre-processor/cement industries for co-processing or to the TSDF site. Sent to authorized recyclers Ash generated from agro waste boilers is sent to brick manufacturers/landfill.

4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same.

As part of our responsibilities under Extended Producer Responsibility, we recycle a corresponding amount of post-consumer plastic waste generated by our products in India. This recycled plastic is either used to create new products or serves as an alternative energy source. Additionally, we have transitioned from physical patient information leaflets to digital formats, not only cutting costs but also reducing paper usage and waste. In FY23, we successfully met our EPR objective, achieving a 100% completion rate by collecting and directing 1,956 metric tons of plastic waste to processing facilities.

Corporate Overview Statutory Reports Financial Statements 255

Leadership Indicators

1. Has the entity conducted Life Cycle Perspective/Assessments (LCA) for any of its products (for manufacturing industry) or for its services (for service industry)? If yes, provide details in the following format?

NIC Code	Name of Product/ Service	% of total Turnover contributed	Boundary for which the Life Cycle Perspective / Assessment was	Whether conducted by independent external agency (Yes/No)	Results communicated in public domain (Yes/No) If yes, provide the web-link.
			conducted
24232	Albuterol	3.4%	Cradle to gate	Yes	Confidential
24232 24232 24232 24232 24232 24232 24232 24232 24232	Lisinopril GLUCONORM Cefaclor Etanercept Levetiracetam 7ACCA BUDAMATE RABLET TONACT	0.2% 3.1% 2.4% 1.7% 0.4% 1.8% 1.6% 1.3% 1.3%	Cradle to gate Cradle to gate Cradle to gate Cradle to gate Cradle to gate Cradle to gate Cradle to gate Cradle to gate Cradle to gate	Yes Yes Yes Yes Yes Yes Yes Yes Yes	Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential

2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products/ services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly describe the same along-with action taken to mitigate the same.

Name of Product/Service	Description of the risk/concern	Action Taken
Lisinopril	Acidification, Mineral & Fossil Resource Depletion, Ecotoxicity (Freshwater),	We are in the process
	Eutrophication (Terrestrial, Freshwater, Marine), Photochemical Ozone	of adopting SBTi based
	Formation	approach to develop the
Levetiracetam	Ozone depletion	decarbonisation strategy of our value chain.
7ACCA	Water Resource Depletion

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) or providing services (for service industry).

The nature of the Company’s business, being the production of pharmaceutical goods intended for human consumption, precludes the utilization of any re-used or recycled input materials in its production processes or product packaging. This arises from the critical imperative to ensure consumer safety and comply with applicable current Good Manufacturing Practices (cGMP) mandated by regulatory bodies.

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed, as per the following format:

As part of our commitment to Extended Producer Responsibility regarding the management of post-consumer plastic waste, we are ensuring the recovery of a quantity of post-consumer plastic waste equivalent to what our products produce in India. This plastic waste is then directed towards the creation of recycled products or used as an alternative source of energy. Moreover, we have digitized patient information leaflets, removing them from our products. This step has not only cut costs but also decreased paper usage and waste.

Ptil	FY 2024 FY 2023	FY 2024 FY 2023
arcuars	Re-Used Recycled Safely Disposed	Re-Used Recycled Safely Disposed
Plastics (including packaging)	0 0 2803MT	0 0 1956MT
E-waste	Not applicable Not applicable
Hazardous waste	Not applicable Not applicable
Other waste	Not applicable Not applicable

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.

Indicateproduct category	Reclaimedproducts and theirpackaging materials as % of totalproducts sold in respective category
Nil	Not applicable in any category

256 LUPIN LIMITED | Integrated Report 2023-2024

PRINCIPLE 3

Businesses should respect and promote the well-being of all employees, including those in their value chains

Essential Indicators

1. a. Details of measures for the well-being of employees:

Category		% of employees covered by	% of employees covered by	% of employees covered by	% of employees covered by	% of employees covered by
		Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities
	Total (A) Number (B) % (B/A)		Number (C) % (C/A)	Number (D) % (D/A)	Number (E) % (E/A)	Number (F) % (F/A)
	Permanent employees
Male	17273 17273 100%		17273 100%	- -	17273 100%	Not Applicable
Female	983 983 100%		983 100%	983 100%	- -
Total	18256 18256 100%		18256 100%	983 100%	17273 100%
	Other than Permanent employees
Male	Not Applicable
Female
Total

b. Details of measures for the well-being of workers:

Category		% of workers covered by	% of workers covered by	% of workers covered by	% of workers covered by	% of workers covered by
	Total (A) Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities Number (B) % (B/A) Number (C) % (C/A) Number (D) % (D/A) Number (E) % (E/A) Number (F) % (F/A)	Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities
			Number (C) % (C/A)	Number (D) % (D/A)	Number (E) % (E/A)	Number (F) % (F/A)
	Permanent workers
Male	942 942 100%		942 100%	- -	942 100%	Not Applicable
Female	12 12 100%		12 100%	12 100%	- -
Total	954 954 100%		954 100%	12 100%	942 100%
	Other than Permanent workers
Male	Not Applicable
Female
Total

• c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format.

c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format.	c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format.	c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format.
Particulars FY 2023-24 FY 2022-23
Cost incurred on wellbeingmeasures as a % of total revenue of the company 0.07% Not Applicable
2. Details of retirement benefits, for Current and Previous Financial Year.
Benefits	FY 2023-24	FY 2022-23
	No. of employees covered as a % of total employees No. of workers covered as a % of total workers Deducted and deposited with the authority (Y/N/N.A.)	No. of employees covered as a % of total employees No. of workers covered as a % of total workers Deducted and deposited with the authority (Y/N/N.A.)
PF	100% 100% Y	100% 100% Y
Gratuity	100% 100% Y	100% 100% Y
ESI	4% 31% Y	16% 41% Y
Others – (Superannuation)	3% 0% Y	3% 0% Y
Others (NPS)	2.41% 0% Y	2.5% 0% Y

3. Accessibility of workplaces

• Are the premises/offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.

Our facilities are equipped with ramps, assistance personnel, and other amenities to provide support for individuals with disabilities.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a weblink to the policy.

We are committed to being an employer that provides equal opportunities to all individuals, as outlined in our Code of Conduct. We ensure equal employment opportunities and uphold the personal dignity of every person, irrespective of race, age, ancestry, gender, color, ethnic origin, citizenship, sexual orientation, gender identity, marital status, family status, disability, religion, handicap, or any

Corporate Overview Statutory Reports Financial Statements 257

other protected classifications under applicable laws. These principles extend to all employment decisions including recruiting, training, evaluation, promotion,reward, or any other terms and conditions of work. https://www.lupin.com/investors/code-ofconduct/

5. Return to work and Retention rates of permanent employees and workers that took parental leave.

Gender	Permanent employees	Permanent workers
	Return to work rate Retention rate	Return to work rate Retention rate
Male	100% 100%	100% 100%
Female	91% 71%	50% No ML Cases
Total	99% -	95% -

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and workers? If yes, give details of the mechanism in brief.

Yes, the Company has a mechanism to receive and redress grievances

Particulars Yes/No (If Yes, then give details of the mechanism in brief)

Permanent Workers Yes. Lupin has a Whistle Blower Policy which provides a formal mechanism to all employees on Other than Permanent Workers full-time or part-time employment, with either permanent, probationary, trainee, retainer, Permanent Employees temporary or contractual appointment to report any actual or suspected concerns related to Violation of Code or any other unethical behavior. Other than Permanent Employees

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

Category	FY 2023-24	FY 2022-23
	Total employees/ workers in respective category (A) No. of employees/ workers in respective category, who are part of association(s) or Union (B) % (B/A)	Total employees/ workers in respective category (C) No. of employees/ workers in respective category, who are part of association(s) or Union (D) % (D/C)
Total Permanent Employees	18256 68 0.37%	17606 0 0
- Male	17273 66 0.38%	16673 0 0
- Female	983 2 0.20%	933 0 0
Total Permanent Workers	954 537 56.29%	1125 554 49%
- Male - Female	942 535 56.79% 12 2 16.67%	1112 552 49.64% 13 2 15%

8. Details of training given to employees and workers:

Category	FY 2023-24	FY 2022-23
	Total (A) On Health and safety measures On Skill upgradation	Total (D) On Health and safety measures On Skill upgradation
	No. (B) % (B/A) No. (C) % (C/A)	No. (E) % (E/D) No. (F) % (F/D)
	Employees
Male	17273 15082 87.32% 17273 100%	16673 16673 100% 9894 59.30%
Female	983 655 66.32% 983 100%	933 933 100% 44 4.70%
Total	18256 15737 86.20% 18256 100%	17606 17606 100% 9938 56.44%
	Workers
Male Female Total	942 942 100% Not Applicable 6029 - 0 0 0 12 12 100% 323 - 0 0 0 954 954 100% 6352 0 0 0 0

9. Details of performance and career development reviews of employees and worker:

Category	FY 2023-24	FY 2022-23
	Total (A) No. (B) % (B/A)	Total (C) No.(D) % (D/C)
	Employees
- Male	17273 17273 100%	16888 16888 100%
- Female	983 983 100%	964 964 100%
- Total	18256 18256 100%	17852 17852 100%
	Workers
- Male	-
- Female

258 LUPIN LIMITED | Integrated Report 2023-2024

10. Health and safety management system:

• a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/No). If yes, the coverage of such a system?

We have implemented health and safety management systems in all our facilities and all our sites are ISO 45001 certified.

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?

Health and safety at Lupin are overseen by our Environmental, Health, Safety, and Sustainability (EHS&S) team, who develop and implement the relevant policies, procedures, and programs at all our locations. We employ a well-defined Hazard Identification and Risk Assessment (HIRA) system to evaluate the risks linked with our product activities and services, enabling a methodical approach to risk assessment and prioritization for mitigation. Furthermore, we carry out specific risk assessments such as HAZOP for Active Pharmaceutical Ingredient (API) products and processes, alongside Risk Assessments for Formulation Units and daily Job Safety Analysis, to gain a thorough understanding of potential hazards. All our health and safety frameworks are rigorously audited, both internally and externally.

• c. Whether you have processes for workers to report the work related hazards and to remove themselves from such risks. (Y/N) Yes, we provide mechanisms for employees and workers to report any work-related hazards or dangerous situations. Individuals can report near misses, injuries, and incidents to their department heads. We have a specialized safety team responsible for conducting root cause analysis of any incidents and implementing preventive actions to avoid recurrence. For emergency situations, the team verifies that all mitigation strategies are operational through mock drills. Additionally, we take proactive measures to ensure rapid access to medical services, including the provision of ambulances and the availability of antidotes.

• d. Do the employees/workers of the entity have access to non-occupational medical and healthcare services? (Yes/No) Yes, the company’s employees have access to medical and healthcare services for non-work-related conditions. Each department is equipped with first aid kits for minor injuries or ailments unrelated to work. Additionally, eligible employees and workers receive benefits under the Employees’ State Insurance Act, which offers protection in cases of employment-related injuries, illnesses, or maternity issues. Employees also have access to medical and health insurance, applicable to their specific situation, which can be utilized for hospital admissions due to certain injuries.

11. Details of safety related incidents, in the following format:

11. Details of safety related incidents, in the following format:
Safety Incident/Number	Category*	FY 2023-24	FY 2022-23
Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours worked)	Employees	0.00	0.05
Total recordable work-related injuries No. of fatalities High consequence work-related injury or ill-health (excluding fatalities)	Workers Employees Workers Employees Workers Employees Workers	0.12 34 60 0 0 0 0	0.09 37 86 0 0 0 0

*Including in the contract workforce

12. Describe the measures taken by the entity to ensure a safe and healthy workplace.

The well-being and safety of our employees are fundamental to our company’s values. We regularly organize safety-related activities such as mock drills, quizzes, firefighting training, and educational sessions to raise awareness and provide our staff with vital safety skills, underlining our dedication to creating a safe workplace for everyone. Our facilities include specialized Environmental, Health, and Safety (EHS) units that manage our safety systems, which are also incorporated into our annual performance evaluations to set safety goals. We offer extensive training on various topics to promote our employees’ health and safety.

13. Number of Complaints on the following made by employees and workers:

	FY 2023-24 FY 2022-23	FY 2023-24 FY 2022-23
Particulars	Filed during the year Pending resolution at the end of year Remarks	Filed during the year Pending resolution at the end of year Remarks
Working Conditions Health & Safety	37 11 Nil Nil Nil Nil	Nil Nil Nil Nil Nil Nil

14. Assessments for the year:

14. Assessments for the year:
Particulars	% of your plants and offices that were assessed (by entity or statutory authorities or third
	parties)
Health and safety practices	100%
Working Conditions	100%

Customer audits, Lupin Corporate audits and internal audits are conducted at all sites to ensure the compliance as against the established EHS systems and to ensure the health & safety practices are followed, healthy working conditions.

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of health & safety practices and working conditions. Not Applicable

Corporate Overview Statutory Reports Financial Statements 259

Leadership Indicators

1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N).

Yes, the company extends life insurance or any compensatory package for its workforce in the event of death for its workforce.

2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value chain partners.

• We have proper mechanisms in place to ensure that the required statutory dues applicable to our transactions with value chain partners, are deducted and deposited in accordance with relevant regulations. Additionally, we collect proofs from our contractors regarding the payment of statutory dues like Provident Fund (PF) related to our contractual staff.

3. Provide the number of employees/workers having suffered high consequence work related injury/ill-health/fatalities (as reported in Q11 of Essential Indicators above), who have been are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment:

Particulars	Total no. of affected employees/workers	No. of employees/workers that are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment
	FY 2023-24 FY 2022-23	FY 2023-24 FY 2022-23
Employees Workers	0 0 0 0	0 0 0 0

4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings resulting from retirement or termination of employment? (Yes/ No)

• No

5. Details on assessment of value chain partners:	5. Details on assessment of value chain partners:
Particulars	% of value chain partners (by value of business done with such partners) that were assessed
Health and safety practices	100% of strategic and critical material suppliers
Working Conditions	100% of strategic and critical material suppliers

6. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from assessments of health and safety practices and working conditions of value chain partners. Not Applicable

PRINCIPLE 4:

Businesses should respect the interests of and be responsive to all its stakeholders

Essential Indicators

1. Describe the processes for identifying key stakeholder groups of the entity.

• Stakeholder engagement is essential for tackling sustainability-related challenges. By involving stakeholders, we ensure that a variety of viewpoints are taken into account, which aids in fostering cooperation, establishing trust, and enhancing the decisionmaking process. We have recognized our stakeholders by assessing their influence on the value our business generates and the effect our operations have on them.

2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Stakeholder Group	Whether identified as Vulnerable &	Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community	Frequency of engagement (Annually/ Half yearly/Quarterly/	Purpose and scope of engagement including key topics and concerns raised
	Marginalized Group (Yes/No)	Meetings, Notice Board, Website), Other	others – please specify)	during such engagement
Employees	No	Direct & other communication	Continuous	Learning opportunities,
		mechanisms including mailers,		building a safety culture,
		Intranet, employee committees,		and inculcating safe work
		engagement initiatives, newsletters		practices among employees,
				and improving diversity and
				inclusion.
Shareholders/ Investors	No	Press Releases, Social Media, Website, Analyst meets, Analyst briefings, quarterly results, Annual General Meetings, Integrated Report, Financial Reports, email advisories, Intimation to stock exchanges, annual/ quarterly financials, and investor meetings/ conferences	Frequent and need-based	Educating them about Lupin’s business strategy for the long-term, to stay abreast of developments in the Corporation and its subsidiary companies and understanding their expectations

260 LUPIN LIMITED | Integrated Report 2023-2024

Stakeholder Group	Whether identified as Vulnerable &	Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community	Frequency of engagement (Annually/ Half yearly/Quarterly/	Purpose and scope of engagement including key topics and concerns raised
	Marginalized Group (Yes/No)	Meetings, Notice Board, Website), Other	others – please specify)	during such engagement
Customers	Yes, if they qualify	Customer meets, mailers, news	Frequent and	For stronger customer
	based on specified	bulletins, brochures, social media, and	need-based	relationships. To enhance
	criteria such as	website		business. Stay in touch
	income, etc.			with them to understand
				the industry and business
				challenges and address any
				issues that the customers may
				have
Channel Partners, franchises, and key partners Regulators Research Analysts	No No No	Partner meets and events, mailers, news bulletins, brochures, social media, website Working committee meetings, email, one-on one meetings, conceals, conferences, seminars, and forums Website, social media, Email, one- on-one meetings, conceals, video conference, and forums	Frequent and need-based Need-based Frequent and need-based	Stronger partnerships, helps to increase reach and enhance business, ethical business, and fair business practices and governance For good governance and compliance. Discussions with regard to various regulations and amendments, inspections, and approvals. Stay abreast of developments of the Corporation and its subsidiaries
Communities	Yes	Site visits, meetings, press releases,	Frequent and	Understand areas of
and NGOs		project meetings, consultative sessions,	need-based	sustainable development,
		social media, participation in events,		manage Lupin’s brand and
		case studies, brochures, and emails		reputation, work in partnership
				to develop solutions to
				challenging areas, improve
				livelihoods and access to
				healthcare. Support socially
				high impact, replicable and
				sustainable projects

Leadership Indicators

1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.

Maintaining consistent and proactive communication with essential stakeholders is crucial for effectively sharing our strategies and results. We actively engage in and promote open and positive discussions with our stakeholders to better understand their needs, expectations, and objectives, ensuring these factors are considered in all our decision-making processes. We have determined and prioritized key issues based on their significance to our stakeholders and our business operations. Our Environmental, Social, and Governance (ESG) central committee gathers monthly to analyze the feedback collected from these engagements.

2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes/No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity.

Yes. The double materiality assessment that we conducted allowed us to evaluate our stakeholder’s perspectives on our societal and environmental impacts, as well as the potential effects of external events on our business. We conduced meetings with management to shortlist topics and then rolled out the materiality assessment questionnaire of 30 material topics to over 550 external and 200 internal stakeholders. The evaluation helped us identify potential vulnerabilities that could affect our ability to deliver medicines and treatments, while also enabling the company to manage its impacts and understand stakeholder perceptions better.

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/marginalized stakeholder groups.

Dr. Desh Bandhu Gupta established the foundation to serve the poor and needy, outreaching some of the neediest and most excluded geographies in India. Over the last three decades, foundation has worked with 5,431 villages across nine states in India, positively impacting the lives of over twelve lakh families.

The year was a landmark year for the foundation, as it made a strategic shift from implementing holistic rural development to two structured pivotal programmes as Lives and Livelihoods. The programs focus on implementing outcome-oriented projects, serving the poor and needy, enabling better livelihoods, access to health care services, quality of lives and well-being in the long term.

Read about our foundation at https://www.lupinfoundation.in/

Corporate Overview Statutory Reports Financial Statements 261

PRINCIPLE 5

Businesses should respect and promote human rights

Essential Indicators

1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:

format:
Category	FY 2023-24	FY 2022-23
	Total (A) No. of employees/ workers covered (B) % (B / A)	Total (C) No. employees workers covered (D) of / % (D/C)
	Employees
Permanent	18256 5868 32.14%	17606 4001 23%
Other than permanent	393 393 100%	246 38 15.45%
Total Employees	18649 6261 33.57%	17852 4039 22.62%
	Workers
Permanent	954 384 40.25%	1125 0 0%
Other than permanent Total Workers	259 0 0% 1,213 384 31.66%	5227 0 0.00% 6352 0 0.00%

2. Details of minimum wages paid to employees and workers, in the following format:

Category		FY 2023-24	FY 2023-24		FY 2022-23	FY 2022-23
	Total (A)	Equal to Minimum Wage More than Minimum Wage		Total (D)	Equal to Minimum Wage More than Minimum Wage
		No. (B) % (B/A)	No. (C) % (C/A)		No. (E) % (E/D)	No. (F) % (F/D)
		Employees
Permanent	18256	1303 7.14%	16953 92.86%	17606	2288 12.9%	15318 87%
Male	17273	1235 7.15%	16038 92.85%	16673	2271 13.6%	14402 86.3%
Female	983	68 6.92%	915 93.08%	933	17 1.8%	916 98.1%
Other than Permanent	393	393 100%	0 0%	246	6 2.4%	240 97.5%
Male	232	232 100%	0 0%	215	5 2.3%	210 97.6%
Female	161	161 100%	0 0%	31	1 3.2%	30 96.7%
		Workers
Permanent	954	456 47.80%	498 52.20%	1125	439 39%	686 60.9%
Male	942	447 47.45%	495 52.55%	1112	439 39.5%	673 60.5%
Female	12	9 75.00%	3 25.00%	13	0 0	13 100%
Other than Permanent	259	2 0.77%	257 99.23%	5227	5227 100%	0 0
Male Female	221 38	2 0.90% 0 0.00%	219 99.10% 38 100%	4917 310	4917 100% 210 100%	0 0 0 0

3. Details of remuneration/salary/wages

a. Median remuneration/wages

a. Median remuneration/wages
Category	Male	Female
	Number Median remuneration/salary/ wages of respective category	Number Median remuneration/salary/ wages of respective category
Executive Directors	2 88,732,141	1 235,584,783
Board of Directors (BoD) - Non-Executive and Non-Independent	0 Not Applicable	1 8,870,000
Board of Directors (BoD) - Non-Executive and Independent	3 15,522,303	1 15,622,303
Key Managerial Personnel	1 11,591,057	0 Not Applicable
Employees other than BoD and KMP Workers	17266 578,174 1163 352,750	987 628,638 50 162,600

• b. Gross wages paid to females as a % of total wages paid by the entity, in the following format:

Particulars	FY 2023-24	FY 2022-23
Gross wages paid to females as a % of total wages	5.05%	Not available

262 LUPIN LIMITED | Integrated Report 2023-2024

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No)

At Lupin, adhering to and promoting human rights form the foundation of our corporate conduct. We are committed to protecting human rights and eliminating practices like forced labor, child labor, and modern slavery within our operations. To maintain a consistent focus on the protection of human rights, including the prevention of human trafficking, forced labor, child labor, and discrimination, we’ve established an extensive Human Rights Policy. In our operations in India, we have designated 93 employees as Trainers and Lead Implementers for Human Rights. These individuals act as champions for human rights, ensuring the thorough application of our policies within their specific areas or functions.

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.

The Company adheres to uncompromising integrity in conduct of business and has zero tolerance for corrupt and immoral practices. The Company’s operations are guided by strong control systems which are reviewed regularly by internal and external auditors. Code of Conduct, Whistleblower Policy and Prevention of Workplace Harassment and initiatives on creating awareness of sexual harassment at workplace, empower employees to report unethical practices. Specified mechanisms have been set up to deal with workplace harassments and facilitate their swift redressal. Employees can raise their concerns to the Office of Ombudsperson about potential issues concerning fraudulent business practices, unethical behaviour, discriminating or gender-biased misconduct and violation of the Company’s policies or CODE. No person has been denied access to the Chairperson of the Audit Committee. Teams of strategic business unit heads/officers appointed by the Ombudsperson are engaged by the Ethics and Compliance office, for resolution of reported cases in accordance with the Whistleblower Policy. During the year, all cases of sexual harassment that were reported were investigated and resolved by the Internal Complaints Committee within the specified turnaround time as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

6. Number of Complaints on the following made by employees and workers:

Ptil	FY 2023-24 FY 2022-23	FY 2023-24 FY 2022-23
arcuars	Filed Pending Remarks	Filed Pending Remarks
Sexual Harassment	4 0 Nil	3 0 Nil
Discrimination at workplace	0 0 Nil	2 0 Nil
Child Labour	0 0 Nil	0 0 Nil
Forced labour/ Involuntary labour	0 0 Nil	0 0 Nil
Wages Other human rights related issues	0 0 Nil 0 0 Nil	0 0 Nil 0 0 Nil

7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the following format:

==> picture [486 x 59] intentionally omitted <==

----- Start of picture text -----

Particulars FY 2023-24 FY 2022-23
Total Complaints reported under Sexual Harassment on of Women at Workplace 4 3
(Prevention, Prohibition and Redressal) Act, 2013 (POSH)
Complaints on POSH as a % of female employees/workers 0.4% 0.32%
Complaints on POSH upheld 3 Not Applicable
----- End of picture text -----

8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

• Our organization firmly upholds a zero-tolerance stance against all forms of discrimination, including but not limited to sexual discrimination. We strongly urge our employees, contractors, and suppliers to come forward and report any occurrences of discriminatory behavior they encounter. All reported incidents are addressed promptly and efficiently, with appropriate measures taken to ensure that our environment remains inclusive and respectful for everyone. We have also conducted independent third party assessment audits for the Company’s Human Rights Policy with zero findings on the discrimination or harassment cases in FY24 across Pan India Lupin Locations.

9. Do human rights requirements form part of your business agreements and contracts? (Yes/No) Yes

10. Assessments for the year:

10. Assessments for the year:
Particulars	% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Child labour	100%
Forced/involuntary labour Sexual harassment Discrimination at workplace Wages Others – please specify	100% 100% 100% 100% NA

11. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 10 above.

Tier 1 Strategic suppliers identified by Procurement teams, are scheduled to be sensitized and trained on the Lupin’s Human Rights Policy in FY25.

Corporate Overview Statutory Reports Financial Statements 263

Leadership Indicators

1. Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints. Process Improvement in the vendor billing cycle: One of the observations from the location wise Human Rights audit was that, though the third party employees deployed by the manpower contractors were paying their employees well within the stipulated period, the day of the month varied across vendors. Since the permanent employees of the company were being paid on the last day of the month, it posed a risk wherein the third party employees would feel unfairly discriminated against, inspite of complying to all statutory norms of the land. Therefore, it was decided that as a proactive step, the day of payout for the third party employees also needed to be brought forward and made uniform across all vendors to the extent possible.

A cross functional team of HR location leads, administration, financial shared services as well as procurement team was formed. This team worked towards ensuring the agreements with the manpower contractors were re-evaluated with a softer credit period as well as a priority payout partner on a monthly basis. The SOPs prepared by the team were presented to the leaders of these functions and signed off and implemented. This ensured the standardization of the payment date for the vendors and thereby for the third party contractual employees. This led to an improvement in engagement of these people across the India locations.

2. Details of the scope and coverage of any Human rights due-diligence conducted.

Scope:Human Rights Management as per Internal Policy of Lupin Limited and Applicable Compliance Requirements

• Coverage: All Lupin Limited Manufacturing sites across India, Shared Services Office Airoli and Corporate Office, Kalpataru, Mumbai, LMSL & LDL (NRL-National Reference Lab) Turbhe.

3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016?

Yes

4. Details on assessment of value chain partners:

Particulars	% of value chain partners (by value of business done with such partners) that were assessed
Sexual Harassment	100% of strategic and critical material suppliers
Discrimination at workplace Child Labour Forced Labour/Involuntary Labour Wages Others – please specify	100% of strategic and critical material suppliers 100% of strategic and critical material suppliers 100% of strategic and critical material suppliers 100% of strategic and critical material suppliers Not Applicable

5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 4 above.

Not Applicable

PRINCIPLE 6:

Businesses should respect and make efforts to protect and restore the environment

Essential Indicators

1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

==> picture [486 x 212] intentionally omitted <==

----- Start of picture text -----

Parameter FY 2023-24 FY 2022-23
From renewable sources
Total electricity consumption (A) 146,730 GJ 39,868 GJ
Total fuel consumption (B) 487,713 GJ 106,806 GJ
- -
Energy consumption through other sources (C)
Total energy consumed from renewable sources (A+B+C) 634,443 GJ 146,674 GJ
From non-renewable sources
Total electricity consumption (D) 1,184,496 GJ 1,267,950 GJ
Total fuel consumption (E) 2,130,003 GJ 878,847 GJ
Energy consumption through other sources (F) 192,367 GJ 358,486 GJ
Total energy consumed from non-renewable sources (D+E+F) 2,764,446 GJ 2,505,283 GJ
Total energy consumed (A+B+C+D+E+F) 2,769,956 GJ 2,651,957 GJ
Energy intensity per rupee of turnover (Total energy consumed/Revenue from operations) 18.89 GJ/INR Mn 23.55 GJ/INR Mn
Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) 432.16 GJ/Mn 538.97 GJ/Mn
(Total energy consumed/Revenue from operations adjusted for PPP) International Dollar International Dollar
Energy intensity in terms of physical output
Energy intensity (optional) – the relevant metric may be selected by the entity
----- End of picture text -----

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

264 LUPIN LIMITED | Integrated Report 2023-2024

2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any. Not Applicable

3. Provide details of the following disclosures related to water, in the following format:

==> picture [486 x 155] intentionally omitted <==

----- Start of picture text -----

Parameter FY 2023-24 FY 2022-23
Water withdrawal by source (in kilolitres)
(i) Surface water 135,185 KL 135,146 KL
(ii) Groundwater 149,551 KL 161,832 KL
(iii) Third party water 1,336,731 KL 1,270,912 KL
(iv) Seawater/desalinated water - -
-
(v) Others
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 1,621,467 KL 1,567,890 KL
Total volume of water consumption (in kilolitres) 1,584,941 KL 1,551,013 KL
Water intensity per rupee of turnover (Total water consumption/Revenue from operations) 11.07 KL/INR Mn 13.78 KL/INR Mn
Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) 253.30 KL/Mn 315.22 KL/Mn
(Total water consumption/Revenue from operations adjusted for PPP) International Dollar International Dollar
Water intensity in terms of physical output
Water intensity (optional) – the relevant metric may be selected by the entity
----- End of picture text -----

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

4. Provide the following details related to water discharged:

==> picture [486 x 211] intentionally omitted <==

----- Start of picture text -----

Parameter FY 2023-24 FY 2022-23
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
- No treatment -
- With treatment – please specify level of treatment -
(ii) To Groundwater
- No treatment -
- With treatment – please specify level of treatment -
(iii) To Seawater
- No treatment -
- With treatment – please specify level of treatment -
(iv) Sent to third-parties
- No treatment -
- With treatment – Discharge to CETP 36,526 16,877
(v) Others
- No treatment -
- With treatment – please specify level of treatment -
Total water discharged (in kilolitres) 36,526 16,877
----- End of picture text -----

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

5. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation. We’ve put into place technologies and systems at six of our manufacturing facilities to attain Zero Liquid Discharge (ZLD) standards. This measure prevents any effluents generated by our operations from being released into natural water bodies. Additionally, we’re in the process of obtaining ZLD certification for our other sites.

6. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

Parameter	Please specify unit	FY 2023-24	FY 2022-23
NOx	tonnes/annum	152.51	232.42
SOx Particulate matter (PM) Persistent organic pollutants (POP) Volatile organic compounds (VOC) Hazardous air pollutants (HAP)	tonnes/annum tonnes/annum tonnes/annum tonnes/annum tonnes/annum	166.16 - - - -	206.03 - - - -
Others -please specify	tonnes/annum	-	-

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

N/A

Corporate Overview Statutory Reports Financial Statements 265

7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:

Parameter	Unit	FY 2023-24	FY 2022-23
Total
Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 CH4	Metric tonnes of CO2 equivalent	61,474	86,910
N2O
Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) Total CO2 CH4 N20 Total Scope 1 and Scope 2 emission intensity per rupee of turnover (Total Scope 1 and Scope 2 GHG emissions / Revenue from operations) Total Scope 1 and Scope 2 emission intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total Scope 1 and Scope 2 GHG emissions/ Revenue from operations adjusted for PPP) Total Scope 1 and Scope 2 emission intensity in terms of physical output Total Scope 1 and Scope 2 emission intensity (optional) – the relevant metric maybe selected bythe entity	Metric tonnes of CO2 equivalent	263,905 2.27 tCO2e/INR Mn 52 tCO2e/Mn International Dollars	323,845 3.65 tCO2e/INR Mn 83.48 tCO2e/ Mn International Dollars

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

8. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details. At Lupin, we have taken various initiatives to reduce the emission of GHG emissions from our operations, including procurement of renewable energy, switching to cleaner use of fuels, replacing conventional lights with LED, installation of variable frequency drives (VFDs), etc. We have also adopted science based target to reduce our absolute Scope 1 and Scope 2 GHG emissions by 38% by 2030. Our GHG emission reduction initiatives include:

1. We have increased our renewable energy contribution by 3.71 MW at Ankleshwar and 1.58 MW at Dabhasa, reducing 34,688 tonnes of CO2 emissions.

2. We have commissioned rooftop solar panels of 0.52 MW capacity in FY23-24, and installation of additional 1.83 MW is in progress. 3. We have introduced electronically commutated (EC) motors at Pithampur and Aurangabad facilities, which has significantly reduced power consumption by 0.5 MU per annum. We plan to implement EC motors at Lupin Biotech, Lupin Research Park, Sikkim, and Nagpur for further energy reduction.

3. We are commissioning Biomass briquette boilers and installation of bag filters & electrostatic precipitators (ESP) at multiple locations for energy optimization and reduction of particulate matters in flue gas.

4. We have initiated scope 3 inventorization and calculated emissions for 8 categories including Purchased Goods and Services, Capital Goods, Fuel and Energy, Waste Generated and Disposed, Upstream Transport, Downstream Transport, Business Travel, and Employee Commute.

5. We have successfully implemented Microsoft Cloud Based Technologies across our various sites and offices. By leveraging these technologies, we have achieved operational efficiency and reduced approximately 27 tCO2e emissions across our operations. Corporate Overview Statutory Reports Financial Statements 255

6. We have installed advanced chillers and condensers in our manufacturing plants to improve the effectiveness of recovery and further reduce utility costs.

7. We are transitioning to Low Sulphur Heavy Stock (LSHS) as boiler fuel at our 4 facilities resulting in a significant reduction in steam costs and GHG emissions.

8. We are implementing efficient equipment, such as finned tube condensers, dry vacuum pumps, nano-filtration, and heat integration systems.

9. We have replaced AC motors with DC electronically commutated motors in AHUs, which has resulted in energy efficiency and power cost savings.

10. Our manufacturing facility in Mandideep, India has been awarded the “GOLD LEED”.

11. Our commitment to climate stewardship also contributes to product innovation in the development phase. Lupin Healthcare UK’ product, Luforbec, has recently achieved Carbon neutrality certification. Lupin Healthcare offsets the total emissions from the inhaler’s production, use and disposal, thus achieving carbon neutrality

9. Provide details related to waste management by the entity, in the following format:

==> picture [486 x 138] intentionally omitted <==

----- Start of picture text -----

Parameter FY 2023-24 FY 2022-23
Total Waste generated (in metric tonnes)
Plastic waste (A) 2,803 1,956
E-waste (B) 38.63 30
Bio-medical waste (C) 79.82 85.7
Construction and demolition waste (D) 2,752.60 Not monitored
Battery waste (E) 38.38 Not monitored
Radioactive waste (F) 0 0
Other Hazardous waste. Please specify, if any. (G) 32,967.80 28,167
Other Non-hazardous waste generated (H). Please specify, if any. 10,201.06 6,978
(Break-up by composition i.e. by materials relevant to the sector)
Total (A + B + C + D + E + F + G + H) 48,881.29 37,216.7
----- End of picture text -----

266 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [486 x 458] intentionally omitted <==

----- Start of picture text -----

Parameter FY 2023-24 FY 2022-23
Waste intensity per rupee of turnover (Total waste generated/Revenue 0.34 MT/INR Mn 0.34 MT/INR Mn
from operations)
Waste intensity per rupee of turnover adjusted for Purchasing Power 7.81 MT/Mn International 7.73 MT/ Mn International
Parity (PPP) (Total waste generated/Revenue from operations adjusted Dollars Dollars
for PPP)
Waste intensity in terms of physical output
Waste intensity (optional) – the relevant metric may be selected by the
entity
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric
tonnes)
Category of waste
(i) Recycled (i) Plastic Waste: 2,803.00 MT Hazardous Waste
(ii) E-waste: 38.63 MT (i) Recycling/Recovery/
Utilization: 11679 MT
(iii) Other hazardous waste:
8,129.20 MT Non-hazardous waste
(i) Canteen waste and
Mycelia waste sent for
recycling – feed for
piggeries/composting:
5713 MT
(ii) Re-used (i) Other Hazardous waste: -
29.83 MT
(iii) Other recovery operations (i) Non-hazardous waste: Non-hazardous waste
5,395.16 MT (i) Agro-waste boiler
(ii) Hazardous waste: ash sent for brick
4,471.10 MT manufacturing, soil
enrichment and
landfilling: 1265 MT
Total 20,866.92 MT 18,657 MT
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
(i) Incineration/Co-processing (i) Bio-medical waste: 79.82 Hazardous waste
MT (i) Incineration/
(ii) Other hazardous waste: co-processing/pre-
8,198.62 MT processing: 6838 MT
(ii) Landfilling (i) Construction & demolition Hazardous waste
waste: 2,752.60 MT (i) Landfilling: 9651 MT
(ii) Other hazardous waste:
12,169 MT
(iii) Other disposal operations (i) Non-hazardous waste: Hazardous waste
4,805.90 MT (i) Other disposal
operations - sent for
co-processing to
cement kilns: 4163 MT
Total 28,005.94 MT 20,652 MT
----- End of picture text -----

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

10. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes.

• Across our full value chain, we have adopted efficient waste management practices and embraced circularity. We focus on recycling waste and are committed to minimizing the amount of waste sent to landfills and incinerators. Out of our thirteen facilities, including those dedicated to research and development, seven send their incinerable hazardous waste to Co-processors or Pre-processors. In FY2024, we managed to send 89% of our incinerable hazardous waste to be co-processed. By the year 2030, our goal is to redirect 70% of the incinerable hazardous waste generated by our operations in India to co-processing facilities like cement plants. The spent solvents produced in the process of manufacturing Active Pharmaceutical Ingredients (APIs) are either reused on-site or sent to certified disposal facilities or recyclers. In our efforts to conserve resources, used calcium sulphate is dispatched to cement factories to serve as both a raw material and an alternative fuel. Non-hazardous waste, including waste from our canteens and mycelia, is processed either into organic fertilizer through composting or sent to piggeries. Our commitment to waste reduction is evident through several initiatives:

• Encouraging the use of non-hazardous and less toxic materials at the R&D phase or as part of our process enhancements.

• Enhancing our processes to increase product yields, thereby reducing waste.

• Providing training for our employees on the safe handling, labeling, and storage of hazardous substances.

Corporate Overview Statutory Reports Financial Statements 267

11. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals/ clearances are required, please specify details in the following format:

Sl. Location of Type of Whether the conditions of environmental approval/clearance are being complied No. operations/offices operations with? (Y/N) If no, the reasons thereof and corrective action taken, if any.

• 1 Lupin does not operate in ecologically sensitive areas

12. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year

Name and brief EIA Notification Date Whether conducted by Results communicated in public Relevant details of project No. independent external agency domain (Yes/No) Web link (Yes/No)

Nil

13. Is the entity compliant with the applicable environmental law/regulations/guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format: We are compliant with the applicable environmental law/regulations/guidelines in India. No notice has been issued in FY 2023-24.

Leadership Indicators

1. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): For each facility/plant located in areas of water stress, provide the following information:

• (i) Name of the area - Ankleshwar, Pithampur, Aurangabad, Jammu and Nagpur

• (ii) Nature of operations - Manufacturing of pharmaceutical products

• (iii) Water withdrawal, consumption and discharge in the following format:

==> picture [486 x 359] intentionally omitted <==

----- Start of picture text -----

Parameter FY 2023-24 FY 2022-23
Water withdrawal by source (in kilolitres)
(i) Surface water 0 0
(ii) Groundwater 27,821 31,486
(iii) Third party water 726,742 666,305
(iv) Seawater/desalinated water 0 0
(v) Others 0 0
Total volume of water withdrawal (in kilolitres) 754,563 697,791
Total volume of water consumption (in kilolitres) 718,037 680,914
Water intensity per rupee of turnover (Water consumed/turnover) 4.90 KL/Mn INR 6.06 KL/Mn INR
Water intensity (optional) – the relevant metric may be selected by the entity
Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water
- No treatment - -
- With treatment – please specify level of treatment - -
(ii) Into Groundwater
- No treatment - -
- With treatment – please specify level of treatment - -
(iii) Into Seawater
- No treatment - -
- With treatment – please specify level of treatment - -
(iv) Sent to third - parties
- No treatment - -
- With treatment – Sent to CETP 36,526 16,877
(v) Others
- No treatment - -
- With treatment – please specify level of treatment - -
Total water discharged (in kilolitres) 36,526 16,877
----- End of picture text -----

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

268 LUPIN LIMITED | Integrated Report 2023-2024

2. Please provide details of total Scope 3 emissions & its intensity, in the following format:

Parameter	Unit	FY 2023-24	FY 2022-23
Total Scope 3 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)	Metric tonnes of CO2 equivalent	901,520	854,936
Total Scope 3 emissions per rupee of turnover	tCO2e/Mn revenue	6.15 tCO2e/Mn INR	7.59 tCO2e/Mn INR
Total Scope 3 emission intensity (optional) – the relevant metric may be	tCO2e/Mn
selected by the entity	revenue

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

3. With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation activities.

Not Applicable

4. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or reduce impact due to emissions/effluent discharge/waste generated, please provide details of the same as well as outcome of such initiatives, as per the following format:

Sr.	Initiative undertaken	Details of the initiative (Web-link, if any, may	Outcome of the initiative
No		be provided along-with summary)
1	Transition to Biomass briquette	Included in the FY24 sustainability report	Reduction in GHG emissions
	boilers
2	Installation of Continuous flow reactor	Included in the FY24 sustainability report	Reduction in GHG emissions
3	Transition to Low Sulphur Heavy	Included in the FY24 sustainability report	-Reduction in GHG emissions
	Stock (LSHS) as Boiler Fuel		-Reduction in energy consumption

5. Does the entity have a business continuity and disaster management plan? Give details in 100 words/web link. To ensure the resilience of our critical operations during a crisis, we have established a Business Continuity Management System (BCMS) in alignment with the ISO 22301 standard. In the initial phase, we conducted a comprehensive Business Impact Analysis (BIA) and Risk Assessment (RA) specifically for IT services at our Mumbai head office. The recovery strategy was then validated through a tabletop exercise. Subsequent phases will involve conducting BIA and RA for four additional locations engaged in research and development (R&D) and manufacturing.

6. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation measures have been taken by the entity in this regard. None.

7. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts. 100% of strategic and critical material suppliers.

PRINCIPLE 7

Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent

Essential Indicators

1. a. Number of affiliations with trade and industry chambers/associations. Twelve

• b. List the top 10 trade and industry chambers/associations (determined based on the total members of such body) the entity is a member of/affiliated to.

Sl. No.	Name of the trade and industry chambers/associations	Reach of trade and industry chambers/ associations (State/National)
1	Federation of Indian Chambers of Commerce and Industry (FICCI)	National
2 3 4 5 6 7 8	Confederation of Indian Industry (CII) Associated Chambers of Commerce and Industry of India (ASSOCHAM) Indian Drug Manufacturers Association (IDMA) Foundation of Pharma Entrepreneurs (FOPE) International Generic and Biosimilar Medicines Association (IGBA) Association for Accessible Medicines (AAM) Medicines for Europe, Medicines for Europe Regulatory Group	National National National National International International International
9	Quality Circle Forum of India	National

Corporate Overview Statutory Reports Financial Statements 269

Sl. No.	Name of the trade and industry chambers/associations	Reach of trade and industry chambers/ associations (State/National)
10 11 12	National Safety Council Pharmaceuticals Export Promotion Council Association of Biotechnology Led Enterprise (ABLE)	National National National

2. Provide details of corrective action taken or underway on any issues related to anticompetitive conduct by the entity, based on adverse orders from regulatory authorities.

Not Applicable

		Leadership Indicators	Leadership Indicators
1.	Details of public policy positions advocated by the		entity:
Sl. No.	Public policy advocated	Method resorted for such advocacy	Whether information available in the public domain? (Yes/No)	Frequency of Review by Board (Annually/ Half yearly/Quarterly/	Web Link, if available
				Others – please
				specify)
1	Advocacy for policies	Through association with	No	Need-basis
	and regulatory	Indian Pharmaceutical
	framework that support	Alliance
	R&D and Intellectual
	property (IP) protection
2	Reduction in counterfeiting and non-standard quality drugs, Uniform Code of Pharmaceuticals Marketing Practices	Through association with Indian Pharmaceutical Alliance	Yes	Need-basis	www.ipa-india.org
3	Policy advocacy to	Direct representation	No	Need-basis
	improve affordability	or through industry
	and accessibility of	chambers and
	medicines	associations

PRINCIPLE 8

Businesses should promote inclusive growth and equitable development

Essential Indicators

1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year.

Nil Name and brief SIA Notification No. Date of notification Whether conducted Results Relevant Web link details of project by independent communicated in external agency public domain (Yes/No) (Yes/No) NA. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format: Nil S. Name of Project for which R&R State District No. of Project % of PAFs covered by Amounts paid to PAFs No. is ongoing Affected Families R&R in the FY (In INR) (PAFs) NA

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format:

3. Describe the mechanisms to receive and redress grievances of the community.

• We ensure that the communities we collaborate with are regarded as equal partners in development and actively involved in project implementation from the outset. The work is monitored by the community and upon its completion, the Panchayat assumes responsibility for sustaining the initiatives. To address grievances, we’ve established guidelines and procedures at the village level to ensure timely resolution through local institutions.

270 LUPIN LIMITED | Integrated Report 2023-2024

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
Parameter	FY 2023-24	FY 2022-23
Directly sourced from MSME/ small producers	11.8%	Not available
Directly from within India	78%	Not available

5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent/on contract basis) in the following locations, as % of total wage cost:	5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent/on contract basis) in the following locations, as % of total wage cost:
Location FY 2023-24	FY 2022-23
Rural Data unavailable	Data unavailable
Semi-urban Data unavailable Urban Data unavailable Metropolitan Data unavailable	Data unavailable Data unavailable Data unavailable

Leadership Indicators

1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1 of Essential Indicators above): Not Applicable

Details of negative social impact identified Corrective action taken None

2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by government bodies:

Sl. No.	State	Aspirational District	Amount spent (In INR million)
1	Rajasthan	Dholpur	4.804
2 3 4	Maharashtra Madhya Pradesh Andhra Pradesh	Nandurbar Vidisha Visakhapatnam	11.929 0.445 3.002

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized/vulnerable groups? (Yes/No)

No

• (b) From which marginalized/vulnerable groups do you procure?: Nil

• (c) What percentage of total procurement (by value) does it constitute?: Nil

4.	Details of the benefits derived	and shared from the intellectual	properties owned or acquired by your entity (in the current	properties owned or acquired by your entity (in the current
	financial year), based on traditional knowledge:
	Nil
S.	Intellectual Property based	Owned/Acquired (Yes/No)	Benefit shared (Yes/No)	Basis of calculating benefit
No.	on traditional knowledge			share
	NA.

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of traditional knowledge is involved. Nil

Nil
Name of the Authority	Brief of the case	Corrective action taken
NA.

6. Details of beneficiaries of CSR Projects:

Sl.	CSR Project	No of persons benefitted	% beneficiaries from
No.		from CSR projects	vulnerable and marginal
			groups
1	Desh Bandhu Jan Utkarsh Pariyojana	850	100%
2 3 4	Integrated Livelihood Development Program (Atlas Copco India Ltd) Better Cotton Initiative (BCI) Project FPO projects	3,950 95,381 11,673	100% 100% 100%

Corporate Overview Statutory Reports Financial Statements 271

Sl.	CSR Project	No of persons benefitted	% beneficiaries from
No.		from CSR projects	vulnerable and marginal
			groups
5	TDF Wadi Projects (NABARD)	2,050	100%
6	Climate Change Adaptation projects (NABARD)	1,357	100%
7	Lives Program	11,296	100%

PRINCIPLE 9

Businesses should engage with and provide value to their consumers in a responsible manner

Essential Indicators

1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.

• Our Pharmacovigilance department acts as the focal point for overseeing the safety and quality of our products. Additionally, we maintain a specialized team responsible for monitoring and resolving consumer complaints and concerns. To capture customer feedback and pinpoint areas for improvement, we regularly conduct surveys, facilitating the prompt resolution of any issues raised.

2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:

Particulars	As a percentage of total turnover
Environmental and social parameters	100% - There are social parameters relevant to the responsible, safe and prescribed usage
relevant to the product	of the products
Safe and responsible usage	100% - All products of Lupin have the usage/directions mentioned on leaflets/packaging.
Recycling and/or safe disposal	100%

3. Number of consumer complaints in respect of the following:

Particulars	FY 2023-24	FY 2023-24	Remarks	FY 2022-23	FY 2022-23	Remarks
	Received during the year	Pending resolution at the end of the year		Recevied during the year	Pending resolution at the end of the year
Data Privacy	Nil	-	-	Nil	-	-
Advertising	Nil	-	-	Nil	-	-
Cyber Security	Nil	-	-	Nil	-	-
Delivery of essential services	Nil	-	-	Nil	-	-
Restrictive Trade Practices	Nil	-	-	Nil	-	-
Unfair Trade Practices	Nil	-	-	Nil	-	-
Others	25,917	0	-	25,500	All Adverse drug reports with Lupin products received at DSRM are appropriately handled, i.e., the reports are processed in the global company safety database, thoroughly reviewed, medically assessed, and submitted to global regulatory authorities (wherever applicable)	-

4. Details of instances of product recalls on account of safety issues:

Particulars	Number	Reason for recall
Voluntary recalls	8	The Company initiated these recalls as prompt market action was required due to various identified
		issues in the respective products.
Forced recalls	0

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy.

• Yes, the company has established and enforced a comprehensive Global Privacy Policy applicable to all its legal entities and business divisions. This policy is available for review on our website.

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services.

• We take proactive steps in case any issue arises pertaining to any one of these categories. Corrective actions are also taken to prevent recurrences of similar instances.

272 LUPIN LIMITED | Integrated Report 2023-2024

7. Provide the following information relating to data breaches:

• a. Number of instances of data breaches : 0

• b. Percentage of data breaches involving personally identifiable information of customers: 0

• c. Impact, if any, of the data breaches: NA

Leadership Indicators

1. Channels / platforms where information on products and services of the entity can be accessed (provide web link, if available). The required information is available on our website at the following link: https://www.lupin.com/our-products/product-finder/Lupin has a website that provides all the necessary information on the company. For further information, visit the link, https://www.lupin. com/about-us

2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services. Our product leaflets supply necessary information regarding the safe and responsible usage of our products or medications. Additionally, we hold both promotional and non-promotional events aimed at raising awareness among Clinical Pharmacies regarding the responsible use of our products.

3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.

We notify the regulatory authorities prior to discontinuing any drugs listed in the National List of Essential Medicines. Should the regulatory authorities request the continuation of any such medicine, we maintain its production until we receive official permission to cease manufacture.

4. Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/No/Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer satisfaction relating to the major products / services of the entity, significant locations of operation of the entity or the entity as a whole? (Yes/No). Not applicable, we publish all information required under the law on the product.

Consolidated Financial Statements

274 LUPIN LIMITED | Integrated Report 2023-2024

Independent Auditor’s Report To the Members of Lupin Limited

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Lupin Limited (hereinafter referred to as the “Holding Company”) and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), and its joint venture, which comprise the consolidated balance sheet as at 31 March 2024, and the consolidated statement of profit and loss (including other comprehensive income), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of the other auditors on separate financial statements of such subsidiaries and a joint venture as were audited by the other auditors, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group and joint venture as at 31 March 2024, of its consolidated profit and other comprehensive income, consolidated changes in equity and consolidated cash flows for the year then ended.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgement and based on the consideration of reports of other auditors on separate financial statements of components audited by them, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1) Revenue Recognition

Refer note 1B(m) of material accounting policies and note 30 to consolidated financial statements

The key audit matter

Revenue from the sale of pharmaceutical products is recognized when control over goods is transferred to a customer. The actual point in time when revenue is recognized varies depending on the specific terms and conditions of the sales contracts entered with customers. The Group has many customers operating in various geographies and sales contracts with customers have distinct terms relating to the recognition of revenue, the right of return and price adjustments.

We identified the recognition of revenue from sale of products as a key audit matter considering:

Revenue is a key performance indicator for the group. Accordingly, there could be pressure to meet the expectations of investors/ other stakeholders and/ or to meet revenue targets stipulated in performance incentive schemes for a reporting period. We have considered that there is a risk of fraud related to revenue being overstated by recognition in the wrong period or before control has passed during the year and at period end.

How the matter was addressed in our audit

To	obtain sufficient and appropriate audit evidence, our
principal audit procedures and procedures performed
by	component auditors, amongst others, include the
following:
–	Compared the accounting policies in respect of
	revenue recognition with applicable accounting
	standards to test for compliance.
–	Tested design, implementation and operating effectiveness of the Company’s internal controls
	including general IT controls and key IT application controls over recognition of revenue.
– –	Performed substantive testing of selected samples of revenue transactions recorded during the year. For a sample of year-end sales, we verified contractual terms of sales invoices/ contracts, shipping documents and acknowledged delivery receipts for those transactions including management assessment and quantification of any sales reversal for undelivered goods.

Corporate Overview Statutory Reports Financial Statements 275

The key audit matter	How the matter was addressed in our audit	How the matter was addressed in our audit
Group’s assessment of accrual towards rebates, discounts,	–	Verified Group’s assessment of accruals of rebates,
returns, service level penalties and allowances require		discounts, returns, service level penalties and
estimates and judgement and change in these estimates		allowances in line with the past practices to identify
can have a significant financial impact.		bias.
	–	Tested any unusual non-standard journal entries that
		impacted revenue recognized duringthe year.

2) Goodwill

Refer note no. 1B(g) of material accounting policies and note 52 to consolidated financial statements

The key audit matter	How the matter was addressed in our audit	How the matter was addressed in our audit
The carrying value of goodwill aggregates to ₹ 23,250.4	To	obtain sufficient and appropriate audit evidence, our
million as at 31 March 2024. Goodwill is evaluated for	principal audit procedures and procedures performed
any indicators of impairment and is tested annually as	by	component auditors, amongst others, include the
required under Ind AS 36. The group evaluates for any	following:
impairment with respect to goodwill annually, at each cash generating unit (CGU) level. The recoverable amount of the CGUs to which such goodwill pertains, being the higher of the value in use and fair value less costs of	–	Tested the design and operating effectiveness of internal controls over impairment assessment including approval of forecasts and valuation models used.
disposal, is compared with the carrying value of goodwill to identify any impairment. Value in use is usually derived from discounted future cash flows. The discounted cash flow model uses several assumptions. These include	–	Assessed the Valuation methodology used by the Company and tested the mathematical accuracy of the impairment models.
estimates of long-term growth rate, discount rate, terminal	–	Assessed identification of CGUs with reference to the
value growth rates, potential product obsolescence, new		guidance in the applicable accounting standards.
product launches and the weighted average cost of capital. Considering the inherent uncertainty, subjectivity and judgement involved and the significance of the value of the goodwill, impairment assessment of goodwill has been considered as a key audit matter.	–	Evaluated valuation assumptions with macro- economic factors, such as discount rates, growth in sales, probability of success of new products, operating and selling costs used, in consultation with valuation specialist.
	–	Performed sensitivity analysis of key assumptions
		and evaluated past performances where relevant to
		assess accuracy of the forecasts made.
	–	Evaluated adequacy of disclosures given in the
		financial statements.

Other Information

The Holding Company’s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and auditor’s reports thereon. The annual report is expected to be made available to us after the date of this auditor’s report.

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

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the Holding Company’s annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with

governance and take necessary actions, as applicable under the relevant laws and regulations.

Management’s and Board of Directors’ Responsibilities for the Consolidated Financial Statements

The Holding Company’s Management and Board of Directors are responsible for the preparation and presentation of these consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated state of affairs, consolidated profit and other comprehensive income, consolidated statement of changes in equity and consolidated cash flows of the Group including its joint venture in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective Management and Board of Directors of the companies included in the Group and of its joint venture are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of each company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate

276 LUPIN LIMITED | Integrated Report 2023-2024

accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Management and Board of Directors of the Holding Company, as aforesaid.

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

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

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

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

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

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,

intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. 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 statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and its joint venture to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial statements of such entities or business activities within the Group and its joint venture to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other 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. Our responsibilities in this regard are further described in paragraph (a) of the section titled “Other Matters” in this audit report.

Corporate Overview Statutory Reports Financial Statements 277

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

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

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

Other Matters

• a. We did not audit the financial statements of twenty three subsidiaries, whose financial statements reflects Group’s share of total assets (before consolidation adjustments) of ₹ 250,860.4 million as at 31 March 2024, Group’s share of total revenues (before consolidation adjustments) of ₹ 147,765.1 million and Group’s share of net cash outflows (before consolidation adjustments) amounting to ₹ 1,935.4 million for the year ended on that date, as considered in the consolidated financial statements. The consolidated financial statements also include the Group’s share of net (loss) (Other Comprehensive Losses) of ₹ 31.6 million for the year ended 31 March 2024, in respect of one joint venture, whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and joint venture, and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries and joint venture is based solely on the reports of the other auditors.

Certain of these subsidiaries and joint venture are located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Holding Company’s management has converted the financial statements of such subsidiaries and a joint venture located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Holding Company’s management. Our opinion in so far as it relates to the balances and affairs of such subsidiaries and a joint venture located outside India is based on the reports of other auditors and the conversion adjustments prepared by the management of the Holding Company and audited by us.

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

• b. The consolidated annual financial statements includes the unaudited financial statements of five subsidiaries, whose financial statements reflects Group’s share of total assets (before consolidation adjustments) of ₹ 12,964.9 million as at 31 March 2024, Group’s share of total revenues (before consolidation adjustments) of ₹ 10,401.3 million and Group’s share of net cash outflows (before consolidation adjustments) amounting to ₹ 930.5 million for the year ended on that date, as considered in the consolidated financial statements, have not been audited either by us or by other auditors. These unaudited financial statements have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, and our report in terms of subsection (3) of Section 143 of the Act in so far as it relates to the aforesaid subsidiaries, is based solely on such unaudited financial statements. In our opinion and according to the information and explanations given to us by the Management, these financial statements are not material to the the Group.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of this matter with respect to the financial statements certified by the Management.

278 LUPIN LIMITED | Integrated Report 2023-2024

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. A. As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditors on separate financial statements of such subsidiaries and a joint venture, as were audited by other auditors, as noted in subparagraph (a) the “Other Matters” paragraph, we report, to the extent applicable, that:

3. a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.

4. b. In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors except for the certain matters stated in the paragraph 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

5. c. The consolidated balance sheet, the consolidated statement of profit and loss (including other comprehensive income), the consolidated statement of changes in equity and the consolidated statement of cash flows dealt this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.

6. d. In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act.

7. e. On the basis of the written

representations received from the directors of the Holding Company as on 31 March 2024 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary companies incorporated in India, none of the directors of the Group companies, incorporated in India is disqualified as on 31 March 2024 from being appointed as a director in terms of Section 164(2) of the Act.

• f. The modification relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2A(b) above on reporting under Section 143(3)(b) and paragraph 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

• g. With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding Company and its subsidiary companies incorporated in India and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.

• B. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate financial statements of the subsidiaries and a joint venture, as noted in the “Other Matters” paragraph:

• a. The consolidated financial statements disclose the impact of pending litigations as at 31 March 2024 on the consolidated financial position of the Group and its joint venture. Refer Note 39 to the consolidated financial statements.

• b. Provision has been made in the consolidated financial statements, as required under the applicable law or Ind AS, for material foreseeable losses, on long-term contracts including derivative contracts. Refer Note 59 to the consolidated financial statements in respect of such items as it relates to the Group and its joint venture.

• c. There has been no delay in transferring amounts to the Investor Education and Protection Fund by the Holding Company or its subsidiary companies incorporated in India during the year ended 31 March 2024.

• d. (i) The management of the Holding Company and its subsidiary companies incorporated in India whose financial statements has been audited under the Act has represented to us and the other auditors of such subsidiary companies that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Holding Company or any

Corporate Overview Statutory Reports Financial Statements 279

of such subsidiary companies, to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Holding Company or any of such subsidiary companies, (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) The management of the Holding Company and its subsidiary companies incorporated in India whose financial statements has been audited under the Act has represented to us and the other auditors of such subsidiary companies that, to the best of its knowledge and belief, no funds have been received by the Holding Company or any of such subsidiary companies, from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding Company or any of such subsidiary companies, shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us and that performed by the auditors of the subsidiary companies incorporated in India whose financial statements have been audited under the Act, nothing has come to our or other auditors notice that has caused us or other auditors to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.

• e. The final dividend paid by the Holding Company incorporated in India during the year, in respect of the same declared for the previous year, is in accordance

with Section 123 of the Act to the extent it applies to payment of dividend.

As stated in Note 38 to the consolidated financial statements, the Board of Directors of the Holding Company incorporated in India has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.

• f. Based on our examination which included test checks and in accordance with requirements of the Implementation Guide on Reporting on Audit Trail under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, except for the instances mentioned below, the Holding Company and its subsidiary companies incorporated in India whose financial statements have been audited under the Act, have used accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software:

• (i) In respect of Holding Company and its subsidiary companies, the feature of recording audit trail (edit log) was not enabled at the database level to log any direct data changes for the accounting software used for maintaining the books of account.

• (ii) In respect of Holding Company and its subsidiary companies, in the absence of sufficient and appropriate reporting on compliance with the audit trail requirements in the independent auditor’s report of a service organization for an accounting software used for consolidation and lease transactions, we are unable to comment whether audit trail feature for the said software was enabled and operated throughout the year for all relevant transactions recorded in the software.

Further, for the periods where audit trail (edit log) facility was enabled and operated throughout the year, we did not come across any instance of the audit trail feature being tampered with during the course of the audit.

280 LUPIN LIMITED | Integrated Report 2023-2024

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

In our opinion and according to the information and explanations given to us and based on the reports of the statutory auditors of such subsidiary companies incorporated in India which were not audited by us, the remuneration paid during the current year by the Holding Company and

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

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.: 101248W/W-100022

Place: Mumbai Dated: May 06, 2024

Sudhir Soni Partner Membership No.: 041870 ICAI UDIN: 24041870BKGDKK4082

Corporate Overview Statutory Reports Financial Statements 281

Annexure A to the Independent Auditor’s Report on the Consolidated Financial Statements of Lupin Limited for the year ended 31 March 2024 (Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

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

Sr. No.	Name of the entities	CIN	Holding Company/Sub sidiary/ JV/ Associate	Clause number of the CARO report which is unfavourable or qualified or adverse
1	Lupin Limited	L24100MH1983PLC029442	Holding Company	Clause (i)(c)
2 3 4 5 6	Lupin Digital Healthcare Limited Lupin Diagnostics Limited Lupin Biologics Limited Lupin Manufacturing Solutions Limited Lupin Life Sciences Limited	U74999MH2021PLC360783 U24100MH2011PLC214885 U24299MH2021PLC354211 U21001MH2023PLC407210 U86100MH2023PLC406793	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary	Clause (xvii) Clause (xvii) Clause (xvii) Clause (xvii) Clause (xvii)

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.: 101248W/W-100022

Sudhir Soni

Place: Mumbai Dated: May 06, 2024

Partner Membership No.: 041870 ICAI UDIN:24041870BKGDKK4082

282 LUPIN LIMITED | Integrated Report 2023-2024

Annexure B to the Independent Auditor’s Report on the Consolidated Financial Statements of Lupin Limited for the year ended 31 March 2024 Report on the internal financial controls with reference to the aforesaid consolidated financial statements under Clause (i) of Sub-section 3 of Section 143 of the Act

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

Opinion

In conjunction with our audit of the consolidated financial statements of Lupin Limited (hereinafter referred to as “the Holding Company”) as of and for the year ended 31 March 2024, we have audited the internal financial controls with reference to financial statements of the Holding Company and such companies incorporated in India under the Companies Act, 2013 which are its subsidiary companies, as of that date.

In our opinion and based on the consideration of reports of the other auditors on internal financial controls with reference to financial statements of subsidiary companies, as were audited by the other auditors, the Holding Company and such companies incorporated in India which are its subsidiary companies, have, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2024, based on the internal financial controls with reference to financial statements criteria established by such companies considering the essential components of such internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the “Guidance Note”).

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

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

timely preparation of reliable financial information, as required under the Act.

Auditor’s Responsibility

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

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the relevant subsidiary companies in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls with reference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

A company’s internal financial controls with reference to financial statements is a process

Corporate Overview Statutory Reports Financial Statements 283

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

Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any

evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Other Matters

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to financial statements insofar as it relates to one subsidiary company, which is a company incorporated in India, is based on the corresponding report of the auditor of such company incorporated in India.

Our opinion is not modified in respect of above matters.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.: 101248W/W-100022 Sudhir Soni Partner Place: Mumbai Membership No.: 041870 Dated: May 06, 2024 ICAI UDIN: 24041870BKGDKK4082

284 LUPIN LIMITED | Integrated Report 2023-2024

Consolidated Balance Sheet

as at March 31, 2024

==> picture [484 x 537] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Note As at 31.03.2024 As at 31.03.2023
ASSETS
Non-Current Assets
a. Property, Plant and Equipment 2 45,841.7 42,896.0
b. Capital Work-in-Progress 3 5,956.7 8,948.2
c. Goodwill 52 23,250.4 22,187.8
d. Other Intangible Assets 4 16,547.1 14,914.4
e. Right-of-use Assets 5 3,143.8 3,554.2
f. Intangible Assets Under Development 6 1,768.6 3,431.7
g. Investments accounted for using equity method 7 269.1 300.7
h. Financial Assets
(i) Non-Current Investments 8 2,007.9 470.6
(ii) Non-Current Loans 9 35.7 40.4
(iii) Other Non-Current Financial Assets 10 1,194.4 987.1
i. Deferred Tax Assets (Net) 47(d) 3,025.3 1,556.5
j. Non-Current Tax Assets (Net) 1,077.0 3,778.6
k. Other Non-Current Assets 11 1,377.6 1,980.1
105,495.3 105,046.3
Current Assets
a. Inventories 12 49,539.0 44,917.6
b. Financial Assets
(i) Current Investments 13 8,469.3 4,397.7
(ii) Trade Receivables 14 46,920.5 44,807.0
(iii) Cash and Cash Equivalents 15 9,832.8 12,318.1
(iv) Other Bank Balances 16 2,192.6 613.2
(v) Current Loans 17 25.8 21.2
(vi) Other Current Financial Assets 18 6,384.9 5,560.9
c. Current Tax Assets (Net) 406.1 367.2
d. Other Current Assets 19 10,705.5 11,510.1
134,476.5 124,513.0
TOTAL 239,971.8 229,559.3
EQUITY AND LIABILITIES
Equity
a. Equity Share Capital 20 911.4 910.0
b. Other Equity 141,991.5 123,735.0
Equity attributable to Owners of the Company 142,902.9 124,645.0
c. Non-Controlling Interest 54(a) 831.6 783.2
143,734.5 125,428.2
Liabilities
Non-Current Liabilities
a. Financial Liabilities
(i) Non-Current Borrowings 21 - 275.1
(ii) Lease Liabilities 44 1,552.8 1,863.9
(iii) Other Non-Current Financial Liabilities 22 1,562.8 2,013.6
b. Non-Current Provisions 23 3,754.0 3,430.3
c. Deferred Tax Liabilities (Net) 47(d) 2,458.7 2,294.3
d. Other Non-Current Liabilities 24 1,894.0 1,600.2
11,222.3 11,477.4
Current Liabilities
a. Financial Liabilities
(i) Current Borrowings 25 26,699.1 42,165.4
(ii) Lease Liabilities 44 965.8 1,110.8
(iii) Trade Payables
- Total outstanding dues of Micro Enterprises and Small Enterprises 26 806.2 763.3
- Total outstanding dues of other than Micro Enterprises and Small Enterprises 26 28,774.9 24,552.0
(iv) Other Current Financial Liabilities 27 6,789.2 5,952.4
b. Other Current Liabilities 28 11,439.0 8,709.0
c. Current Provisions 29 5,249.4 5,151.1
d. Current Tax Liabilities (Net) 4,291.4 4,249.7
85,015.0 92,653.7
TOTAL 239,971.8 229,559.3
See accompanying notes forming part of the consolidated financial statements
----- End of picture text -----

In terms of our report attached For B S R & Co. LLP Chartered Accountants Firm Registration No. 101248W/W-100022

For and on behalf of Board of Directors of Lupin Limited

Sudhir Soni Partner Membership No.: 041870

Manju D. Gupta Chairman DIN: 00209461

Vinita Gupta Chief Executive Officer DIN: 00058631

Nilesh D. Gupta Managing Director DIN: 01734642

Ramesh Swaminathan Executive Director, Global CFO & CRO and Head - Corporate Affairs DIN: 01833346

R. V. Satam

Company Secretary ACS - 11973

Place: Mumbai Dated: May 06, 2024

Corporate Overview Statutory Reports Financial Statements 285

Consolidated Statement of Profit and Loss

for the year ended March 31, 2024

==> picture [485 x 514] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Note
31.03.2024 31.03.2023
INCOME:
Revenue from Operations 30 200,108.2 166,416.6
Other Income 31 1,201.7 733.6
Total Income 201,309.9 167,150.2
EXPENSES:
Cost of Materials Consumed 32 41,421.9 36,878.1
Purchases of Stock-in-Trade 29,587.2 29,382.2
Changes in Inventories of Finished Goods, 33 (4,574.4) 1,537.3
Work-in-Progress and Stock-in-Trade [(Increase)/Decrease]
Employee Benefits Expense 34 34,945.7 30,871.5
Finance Costs 35 3,116.1 2,743.0
Depreciation, Amortisation and Impairment Expense 2,3,4,5 & 55 11,968.1 8,806.9
Other Expenses 36 60,727.7 50,541.8
Net (gain)/loss on Foreign Currency Transactions (105.1) (775.5)
Total Expenses 177,087.2 159,985.3
Profit before Share of Profit of Joint Venture and Tax 24,222.7 7,164.9
Share of Profit from Joint Venture (net of tax) - -
Profit before Tax 24,222.7 7,164.9
Tax Expense: 47(a)
- Current Tax (net) 6,338.5 2,464.2
- Deferred Tax (net) (1,471.5) 223.8
Total Tax Expense 4,867.0 2,688.0
Profit for the year 19,355.7 4,476.9
Share of profit attributable to Non-Controlling Interest 210.9 176.1
Profit for the year attributable to Owners of the Company 19,144.8 4,300.8
Other Comprehensive Income/(Loss)
(A) (i) Items that will not be re-classified subsequently to profit or loss:
- Remeasurements of Defined Benefit Liability (137.3) (16.4)
(ii) Income tax relating to items that will not be re-classified to profit or loss 47(b) 47.0 9.4
(B) (i) Items that will be re-classified subsequently to profit or loss:
- The effective portion of gain & losses on hedging instruments in a cash 131.4 (472.0)
flow hedge
- Exchange differences in translating the financial statements of 374.1 589.3
foreign operations
(ii) Income tax relating to items that will be re-classified to profit or loss 47(b) (39.2) 131.9
Other Comprehensive Income/(Loss) for the year, net of tax 376.0 242.2
Less: Share of Other Comprehensive Income/(Loss) attributable to Non-Controlling (31.0) 40.4
Interest
Other Comprehensive Income/(Loss) for the year attributable to Owners of the Company 407.0 201.8
Profit attributable to :
Owners of the Company 19,144.8 4,300.8
Non-Controlling Interest 210.9 176.1
Profit for the year 19,355.7 4,476.9
Other Comprehensive Income /(Loss) attributable to:
Owners of the Company 407.0 201.8
Non-Controlling Interest (31.0) 40.4
Other Comprehensive Income /(Loss) for the year 376.0 242.2
Total Comprehensive Income attributable to:
Owners of the Company 19,551.8 4,502.6
Non-Controlling Interest 179.9 216.5
Total Comprehensive Income for the year 19,731.7 4,719.1
Earnings per equity share (in ₹) 43
Basic 42.05 9.46
Diluted 41.87 9.41
Face value of Equity Share (in ₹) 2.00 2.00
See accompanying notes forming part of the consolidated financial statements
----- End of picture text -----

In terms of our report attached For B S R & Co. LLP Chartered Accountants Firm Registration No. 101248W/W-100022

Sudhir Soni Partner Membership No.: 041870

For and on behalf of Board of Directors of Lupin Limited

Manju D. Gupta

Vinita Gupta

Chief Executive Officer DIN: 00058631

Chairman DIN: 00209461

Ramesh Swaminathan

R. V. Satam

Executive Director, Global CFO & CRO and Head - Corporate Affairs DIN: 01833346

Company Secretary ACS - 11973

Nilesh D. Gupta Managing Director DIN: 01734642

Place: Mumbai Dated: May 06, 2024

286 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [459 x 680] intentionally omitted <==

----- Start of picture text -----

Equity 121,310.8 4,476.9 (7.0) 4,469.9 250.4 - (1,818.5) (120.4) 455.4 (29.4) - - 124,518.2 19,355.7 (90.3) 19,265.4 464.0 0.8 (1,820.3) (131.5) 717.8 (191.3) - - 142,823.1
(₹ in million) Total Other
- - - - - - - - - - - - - -
Non- Interest 687.1 176.1 176.1 40.4 (120.4) 783.2 210.9 210.9 (31.0) (131.5) 831.6
Controlling
Equity 120,623.7 4,300.8 (7.0) 4,293.8 210.0 - (1,818.5) - 455.4 (29.4) - - 123,735.0 19,144.8 (90.3) 19,054.5 495.0 0.8 (1,820.3) - 717.8 (191.3) - - 141,991.5
attributable to owners of the company
Effective portion of Cash Flow Hedges 350.1 - - - (338.9) - - - - - - - 11.2 - - - 89.9 - - - - - - - 101.1
- - - - - - - - - - - - - - - - - - - -
Other items of Other Comprehensive Income Foreign Currency Translation Reserve (2,691.0) 548.9 (2,142.1) 405.1 (1,737.0)
- - - - - - - - - - - - - - - - - 0.8 - - - - - - 0.8
Share Application Money Pending Allotment
909.0 - 909.0 1.0 910.0
- - - - - - - - - - - - - - - - - - - - - -
317.9 317.9 317.9
Reserve
₹ in million Amalgamation
- - - - - - - - - - - - - - - - - - - - - - - -
Special Reserve 760.0 760.0
As at 31.03.2023 No. of Shares 454,475,014 454,475,014 506,321 454,981,335 Economic Zone Reinvestment - - - - - - - - - - - - -
Retained Earnings 92,884.2 4,300.8 (7.0) 4,293.8 (1,818.5) 95,359.5 19,144.8 (90.3) 19,054.5 (1,820.3) (760.0) 111,833.7
- 1.4
₹ in million 910.0 910.0 911.4 General Reserve 17,134.1 - - - - - - - - - - 98.5 17,232.6 - - - - - - - - - - 154.4 17,387.0
- - - - - - - - - - - - - - - - - -
Reserves and Surplus Stock Options 1,617.3 (29.4) (98.5) 1,489.4 (191.3) (154.4) 1,143.7
- Employees Outstanding
- - - - - - - - - - - - - - - - - - - -
As at 31.03.2024 697,573 Securities Premium 10,620.4 455.4 11,075.8 717.8 11,793.6
No. of Shares 454,981,335 454,981,335 455,678,908
0.3 - - - - - - - - - - - 0.3 - - - - - - - - - - - 0.3
Legal
Reserve
- - - - - - - - - - - - - - - - - - - - - -
126.5 126.5 126.5
Capital Reserve
Redemption
- - - - - - - - - - - - - - - - - - - - - -
Capital Reserve 263.9 263.9 263.9
for the year ended March 31, 2024 A. Equity Share Capital [Refer note 20] Particulars Balance at the beginning of the reporting year Changes in Equity Share Capital due to prior period errors Restated balance at the beginning of the current reporting period Changes in equity share capital during the year Balance at the end of the reporting year B. Other Equity Particulars Balance as at 31.03.2022 Profit/(Loss) for the year Remeasurements of defined benefit plans (net of tax) Total comprehensive income/(loss) for the year Movement in other comprehensive income for the year Received during the year Final dividend on Equity Shares Dividend to Non-Controlling Interest Issue of equity shares on exercise of employee stock options Amortised/Exercised during the year Transfer to Special Economic Zone Reinvestment Reserve Transfer from share based payments to General Reserve Balance as at 31.03.2023 Profit/(Loss) for the year Remeasurements of defined benefit plans (net of tax) Total comprehensive income/(loss) for the year Movement in other comprehensive income for the year Received during the year Final dividend on Equity Shares Dividend to Non-Controlling Interest Issue of equity shares on exercise of employee stock options Amortised/Exercised during the year Transfer to Special Economic Zone Reinvestment Reserve Transfer from share based payments to General Reserve Balance as at 31.03.2024
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 287

Nature of Reserves	a) Capital Reserve	The Capital reserve is created on receipts of government grants for setting up the factories in backward areas for performing research on critical medicines for the betterment of the society	and on restructuring of the Capital of the Company under various schemes of Amalgamation.	b) Capital Redemption Reserve	This reserve represents amounts transferred on redemption of redeemable cumulative preference shares in earlier years. The reserve can be utilised in accordance with the provisions of	section 69 of the Companies Act, 2013.	c) Legal Reserve	This reserve represents appropriation of certain percentage of profit as per the local statutory requirement of few subsidiaries	d) Securities Premium	Securities premium account comprises of the premium on issue of shares. The reserve is utilised in accordance with the specific provision of the Companies Act, 2013.	e) Employees Stock Options Outstanding	The Company has employee stock option schemes under which the option to subscribe for the Company’s shares have been granted to certain employees and directors. This is used to	recognize the value of equity-settled share-based payments provided to the employees as part of their remuneration.	f) General Reserve	The General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to	another and is not an item of other comprehensive income.	g) Special Economic Zone Reinvestment Reserve The Special Economic Zone Reinvestment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income Tax Act, 1961.	h) Amalgamation Reserve	This reserve represents creation of amalgamation reserve pursuant to the scheme of amalgamation between erstwhile Lupin Laboratories Ltd. and the Company.	i) Share Application Money Pending Allotment	Share Application money represents amount received towards share application money which were pending for allotment as on reporting date.	j) Foreign Currency Translation Reserve	This reserve represents exchange differences arising on account of conversion of foreign operations to Company’s functional currency.	k) Cash Flow Hedge Reserve	The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for	Cash flow hedges. The cumulative gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are recognised and accumulated under the	heading of cash flow reserve will be reclassified to statement of profit and loss only when the hedged items affect the profit or loss.	In terms of our report attached	ForB S R & Co. LLP For and on behalf ofBoard of Directors of Lupin Limited	Chartered Accountants	Firm Registration No. 101248W/W-100022	Sudhir Soni Manju D. Gupta Vinita Gupta Nilesh D. Gupta	Partner Chairman Chief Executive Officer Managing Director	Membership No.: 041870 DIN: 00209461 DIN: 00058631 DIN: 01734642	Ramesh Swaminathan R. V. Satam	Executive Director, Global CFO & CRO and Head - Corporate Affairs Company Secretary	DIN: 01833346 ACS - 11973	Place: Mumbai	Dated: May 06, 2024

288 LUPIN LIMITED | Integrated Report 2023-2024

Consolidated Statement of Cash Flows

for the year ended March 31, 2024

==> picture [486 x 617] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
31.03.2024 31.03.2023
A. Cash Flow from Operating Activities
Profit/(Loss) before Tax 24,222.7 7,164.9
Adjustments for:
Depreciation, Amortisation and Impairment Expense 11,968.1 8,806.9
(Profit)/Loss on sale/write-off of Property, Plant and Equipment/Intangible Assets (11.7) (209.8)
Finance Costs 3,116.1 2,743.0
Gain on Sale of Mutual Fund Investments (296.5) (117.1)
Interest on Deposits with Banks and Others (462.3) (324.3)
Interest on Income Tax Refund (373.6) 3.1
Bad Trade Receivables/Advances written off 1.9 34.3
Unrealised Loss/(Gain) on Mutual Fund Investments (57.4) (14.1)
Unrealised Loss/(Gain) on Non-Current Investment 109.0 (3.6)
Impairment Allowances for Doubtful Trade Receivables/Deposits/Advances 652.9 115.3
Share Based Payment Expense 383.3 407.6
Net Loss on Financial Liabilities Measured at Fair Value Through Profit or Loss (153.5) (128.3)
Unrealised Exchange (Gain)/Loss on Revaluation (210.0) (338.9)
Operating Cash Flows before Working Capital Changes 38,889.0 18,139.0
Changes in working capital:
Adjustments for (increase)/decrease in operating assets:
Non-Current Loans 4.8 (37.8)
Other Non-Current Financial Assets 100.6 (355.8)
Other Non-Current Assets 323.0 (130.6)
Inventories (4,401.5) 1,954.4
Trade Receivables (2,408.1) (1,319.8)
Current Loans (4.6) (115.2)
Other Current Financial Assets (1,119.4) (1,797.2)
Other Current Assets 485.0 684.4
Adjustments for increase/(decrease) in operating liabilities:
Other Non-Current Financial Liabilities 254.6 7.4
Non-Current Provisions (59.8) 50.3
Other Non-Current Liabilities 290.7 237.7
Trade Payables 4,188.0 2,168.1
Other Current Financial Liabilities 429.4 141.2
Other Current Liabilities 2,682.7 1,521.9
Current Provisions 89.7 256.2
Cash Generated from Operations 39,744.1 21,404.2
Net Income tax paid (3,260.5) (2,431.8)
Net Cash Flow generated from/(used in) Operating Activities 36,483.6 18,972.4
B. Cash Flow from Investing Activities
Payment for acquisition of business, net off cash acquired (1,465.0) (2,910.0)
Payment for acquisition of Property, Plant and Equipment/Intangible Assets, including capital
advances (9,289.0) (14,996.2)
Proceeds from sale of Property, Plant and Equipment/Intangible Assets 122.6 385.3
Purchase of Non-Current Investment (1,646.3) -
Purchase of Current Investments (109,637.2) (118,232.6)
Proceeds from sale of Current Investments 105,909.9 122,190.1
Bank balances not considered as Cash and Cash Equivalents (1,579.4) 371.4
Interest on Deposits with Banks and Others 462.4 324.3
Net Cash Flow generated from/(used in) Investing Activities (17,122.0) (12,867.7)
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 289

Consolidated Statement of Cash Flows

for the year ended March 31, 2024

==> picture [486 x 235] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
31.03.2024 31.03.2023
C. Cash Flow from Financing Activities
Repayment of Non-Current Borrowings (275.1) (1,134.9)
Proceeds from/(Repayment of) Current Borrowings (15,896.2) 2,863.0
Proceeds from issue of equity shares (ESOPs) and Share application money 2.2 1.0
Securities Premium Received (ESOPs) 143.3 18.4
Payment of Lease liabilities (net off interest) (1,159.2) (1,028.2)
Finance Costs (2,829.1) (2,266.8)
Dividend paid (1,828.0) (1,825.0)
Net Cash Flow generated from/(used in) Financing Activities (21,842.1) (3,372.5)
Net Increase/(Decrease) in Cash and Cash Equivalents (2,480.5) 2,732.2
Cash and Cash Equivalents as at the beginning of the year 12,318.1 9,913.7
Cash and Cash Equivalents as at the end of the year 9,837.6 12,645.9
Reconciliation of Cash and Cash Equivalents with the Balance Sheet
Cash and Cash Equivalents as per Balance Sheet [Refer note 15] 9,832.8 12,318.1
Unrealised loss/(gain) on foreign currency Cash and Cash Equivalents 4.8 327.8
Bank Overdraft - -
Cash and Cash Equivalents as at the end of the year 9,837.6 12,645.9
----- End of picture text -----

Notes:

1. The above Cash Flow Statement has been prepared under the ‘Indirect Method’ as set out in the Indian Accounting Standard 7 (Ind AS -7) “ Statement of Cash Flows”.

2. Cash and cash equivalents comprises cash on hand, cash at bank and short term deposits with an original maturity of three months or less, that are readily convertible into known amounts of cash and subject to insignificant risk of changes in value.

3. For the purpose of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.”

4. Refer note 65 for Non Cash Changes in Cash Flows from Financing Activities.

In terms of our report attached For B S R & Co. LLP Chartered Accountants Firm Registration No. 101248W/W-100022

Sudhir Soni Partner Membership No.: 041870

For and on behalf of Board of Directors of Lupin Limited

Manju D. Gupta

Vinita Gupta

Chairman Chief Executive Officer DIN: 00209461 DIN: 00058631 Ramesh Swaminathan R. V. Satam Executive Director, Global CFO & CRO and Company Secretary Head - Corporate Affairs ACS - 11973 DIN: 01833346

Nilesh D. Gupta Managing Director DIN: 01734642

Place: Mumbai Dated: May 06, 2024

290 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

1A. OVERVIEW:

Lupin Limited (hereinafter referred to as ‘‘the Company’’ or “Parent Company”) incorporated in 1983, is an innovation led Transnational Pharmaceutical Company producing, developing and marketing a wide range of branded and generic formulations, biotechnology products and active pharmaceutical ingredients (APIs) globally. The Company has significant presence in the Cardiovascular, Diabetology, Asthama, Pediatrics, Central Nervous System, GastroIntestinal, Anti-Infectives and Nonsteroidal Anti Inflammatory Drug therapy segments and is a global leader in the Anti-TB and Cephalosporins segments. The Company along with its subsidiaries has manufacturing locations spread across India, USA, Mexico and Brazil with trading and other incidental and related activities extending to the global markets. The Company’s shares are listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. These Consolidated Financial Statements were authorized for issue by the Company’s Board of Directors on May 06, 2024.

The Company is a public limited company incorporated and domiciled in India. The address of its registered office is Kalpataru Inspire, 3[rd] floor, Western Express Highway, Santacruz (East), Mumbai 400055.

These Consolidated Financial Statements comprise financial statement of the Company and its subsidiaries (hereinafter referred to as “the Group”) and its Joint Venture.

1B. MATERIAL ACCOUNTING POLICIES:

• a) Basis of accounting and preparation of Consolidated Financial Statements:

Basis of preparation

• i) These Consolidated Financial Statements of the Group have been prepared and presented in all material aspects in accordance with the principles laid down in Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified under section 133 of the Companies Act, 2013 (‘the Act’) read with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act and accounting principles generally accepted in India.

Functional and Presentation Currency

• ii) These Consolidated Financial Statements are presented in Indian rupees, which is the functional currency of the Parent Company. All financial information presented in Indian

rupees has been rounded to the nearest million, except otherwise indicated.

Basis of measurement

iii) The Consolidated Financial Statements have been prepared on the historical cost convention and on an accrual basis, except for: (i) certain financial instruments that are measured at fair values at the end of each reporting period; (ii) Non-current assets classified as held for sale which are measured at the lower of their carrying amount and fair value less costs to sell; (iii) investment in joint ventures and associates are accounted for using the equity method (iv) derivative financial instruments and (v) defined benefit plans– plan assets that are measured at fair values at the end of each reporting period, as explained in the accounting policies below:

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Use of Significant Estimates and Judgements

• iv) The preparation of the Consolidated Financial Statements in conformity with Ind AS requires Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. Management believes that the estimates used in preparation of the Consolidated Financial Statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/materialized. Estimates and underlying assumptions are reviewed on an ongoing basis.

Management considers the accounting estimates and assumptions discussed below to be its critical accounting estimates and, accordingly, provide an explanation of each below.

Information about critical judgments made in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the following accounting policies.

• Measurement and likelihood of occurrence of provisions and contingencies (Refer note s)

Corporate Overview Statutory Reports Financial Statements 291

Notes

Forming part of the Consolidated Financial Statements

• Impairment of non- financial assets (Refer note g)

• Goodwill impairment (Refer note g)

• Provision for Income Taxes and uncertain tax Positions (Refer note k)

• Impairment of financial assets (Refer note i)

• b) Principles of Consolidation:

Subsidiaries

Subsidiaries are all entities that are controlled by the Company. Control exists when the Company is exposed to or has rights, to variable returns from its involvement with the entity, and has the ability to affect those returns through power over the entity.

In assessing control, potential voting rights are considered only if the rights are substantive. The financial statements of subsidiaries are included in these Consolidated Financial Statements from the date that control commences until the date that control ceases. These Consolidated Financial Statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances as mentioned in those policies.

The financial statement of Subsidiaries used for the purpose of consolidation are drawn up to the same reporting date as that of the Group.

Upon loss of control, the Group derecognizes the assets and liabilities of the subsidiary, derecognizes any non-controlling interests, derecognizes the cumulative translation difference recorded in equity and recognizes the fair value of the consideration received related to the subsidiary. Any surplus or deficit arising on the loss of control is recognized in the Consolidated Statement of Profit and Loss. If the Company retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently, it is accounted for as an equity accounted investee or fair value depending on the level of influence retained.

Joint Ventures (Equity Accounted Investees)

A Joint Venture is a Joint arrangement whereby the parties that have joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. Investments in joint venture is accounted for using the equity method (equity accounted investees) and are initially recognized at cost. The carrying value of the Company’s investment includes goodwill identified on acquisition, net of any accumulated impairment losses. The Company

does not consolidate entities where the NonControlling Interest (“NCI”) holders have certain significant participating rights that provide for effective involvement in significant decisions in the ordinary course of business of such entities. When the Company’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest (including any long-term investments) is reduced to zero and the recognition of further losses is discontinued except to the extent that the Company has an obligation or has made payments on behalf of the investee.

The financial statement of Joint Ventures used for the purpose of consolidation are drawn up to the same reporting date as that of the Group.

Consolidation procedure

The Consolidated Financial Statement of the Group has been combined on a line-byline basis by adding assets, liabilities, equity, income, expense and cash flows. Intra-group balances and transactions, and any unrealized income and expenses arising from intragroup transactions, are eliminated in full while preparing these Consolidated Financial Statements.

Eliminate the carrying amount of the parent’s investment in each subsidiary and the parent’s portion of equity of each subsidiary.

Unrealized gains or losses arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Company’s interest in the investee.

Non-controlling interests (“NCI”)

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

Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity of subsidiaries.

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

• c) Property, Plant and Equipment & Depreciation:

• I. Recognition and Measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. The cost of an item of property, plant and equipment comprises:

• its purchase price, including import duties

292 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

and non-refundable purchase taxes, after deducting trade discounts and rebates.

• any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by Management.

• the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which the Group incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.

• income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management, are recognized in Consolidated Statement of Profit and Loss. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

The cost of the item of property, plant and equipment is recognized as an asset if, and only if it is probable that the future economic benefits associated with the expenditure/ item will flow to the Group and cost of the item can be measured reliably.

Freehold land is carried at historical cost less any accumulated impairment losses.

Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost, comprising of direct costs, related incidental expenses and attributable interest.

II. Subsequent Expenditure

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

III. Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Depreciation on property, plant and equipment of the Company and its subsidiaries incorporated in India has been provided on the straight-line method as

per the useful life prescribed in Schedule II to the Act except in respect of the following categories of assets, in whose case the life of the assets has been assessed as under based on independent technical evaluation and management’s assessment thereof, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

	Particulars Improvements on Leased Premises	Estimated Useful Life Over the period of lease
	Building Plant and Equipment Office Equipment (Desktopand Laptop)	5 to 80 years 10 to 15 years 4 years

Depreciation on property, plant and equipment of the Company’s foreign subsidiaries and a joint venture has been provided on straight-line method as per the estimated useful life of such assets as follows:

	follows:
	Particulars	Estimated Useful Life
	Buildings Improvements on Leased Premises Plant and Equipment1 Furniture and Fixtures Vehicles1 Office Equipment	5 to 50 years Over the period of lease 3 to 20 years 2 to 20 years 3 to 7 years 2 to 21years

1 Assets acquired on lease are depreciated based on straight line method over their respective lease periods.

Depreciation method, useful live and residual values are reviewed at each financial year end and adjusted if appropriate.

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

IV. Derecognition of Property, Plant and Equipment

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on disposal of an item of property, plant and equipment is recognized in Consolidated Statement of Profit and Loss.

Corporate Overview Statutory Reports Financial Statements 293

Notes

Forming part of the Consolidated Financial Statements

d) Intangible Assets:

I. Recognition and Measurement

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises of its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use.

Expenditure on research and development eligible for capitalization are carried as Intangible assets under development where such assets are not yet ready for their intended use.

II. Subsequent Expenditure

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

III. Derecognistion of Intangible Assets

Intangible assets are derecognized either on their disposal or where no future economic benefits are expected from their use. Losses arising on such derecognition are recorded in the Consolidated Statement of Profit and Loss, and are measured as the difference between the net disposal proceeds, if any, and the carrying amount of respective intangible assets as on the date of derecognition.

IV. Amortization

Intangible assets are amortized over their estimated useful life on Straight Line Method as follows:

as follows:
Particulars	Estimated Useful Life
Computer Software	2 to 6 years
Trademark and Licenses Dossiers/Marketing Rights Knowhow	3 to 13 years 5 to 20 years 5years

The estimated useful lives of intangible assets and the amortization period are reviewed at the end of each financial year and the amortization method is revised to reflect the changed pattern, if any.

e) Non-current assets held for sale:

Assets are classified as held for sale and stated at the lower of carrying amount and fair value less costs to sell if the asset is available for immediate sale and its sale is highly probable.

Such assets or group of assets are presented separately in the Balance Sheet as “Assets Classified as Held for Sale”. Once classified as held for sale, intangible assets and property, plant and equipment are no longer amortized or depreciated.

f) Research and Development:

Revenue expenditure pertaining to research is charged to the respective heads in the Consolidated Statement of Profit and Loss in the year it is incurred.

Development costs of products are also charged to the Consolidated Statement of Profit and Loss in the year it is incurred, unless following condition are satisfied in which case such expenditure is capitalized

• a product’s technical feasibility has been established;

• development costs can be measured reliably;

• future economic benefits are probable;

• the Company intends to and has sufficient resources/ability to complete development and to use or sell the asset.

The amount capitalized comprises of expenditure that can be directly attributed or allocated on a reasonable and consistent basis for creating, producing and making the asset ready for its intended use. Property, Plant and Equipment utilized for research and development are capitalized and depreciated in accordance with the policies stated for Property, Plant and Equipment.

Expenditure on in-licensed development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized, if the cost can be reliably measured, the product or process is technically and commercially feasible and the Group has sufficient resources to complete the development and to use or sell the asset.

Payments to third parties that generally take the form of up-front payments and milestones for in-licensed products, compounds and Intellectual Property (IP) are capitalized since the probability of expected future economic benefits criterion is always considered to be satisfied for separately acquired intangible assets.

• g) Impairment of non-financial assets:

The carrying values of Property, Plant and Equipment and Intangible assets at each balance sheet date are reviewed for impairment,

294 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

if any indication of impairment exists.

If the carrying amount of Property, Plant and Equipment and Intangible assets exceed the estimated recoverable amount, an impairment is recognized for such excess amount. The impairment loss is recognized as an expense in the Consolidated Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset.

The recoverable amount is the greater of the asset’s fair value less costs of disposal and its value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cash-generating unit for which the estimates of future cash flows have not been adjusted.

When there is indication that an impairment loss recognized for an asset (other than a revalued asset) in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Consolidated Statement of Profit and Loss, to the extent the amount was previously charged to the Consolidated Statement of Profit and Loss. In case of revalued assets, such reversal is not recognized.

Goodwill impairment

Goodwill is tested for impairment annually. If events or changes in circumstances indicate a potential impairment, as part of the review process, the carrying amount of the Cash Generating Units (CGUs) (including allocated goodwill) is compared with its recoverable amount by the Group. The recoverable amount is the higher of fair value less costs of disposal and value in use, both of which are calculated by the Group using a discounted cash flow analysis. Calculating the future net cash flows expected to be generated to determine if impairment exists and to calculate the impairment involves significant assumptions, estimation and judgment. The estimation and judgment involves, but is not limited to, industry trends including pricing, estimating long-term revenues, revenue growth and operating expenses. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates.

Impairment of CMPs/ANDA filings/Acquired In-Process Research and Development

Intangible assets with definite useful lives are subject to amortization. Intangible Assets are reviewed at the end of each reporting period to determine whether there is any indication that the carrying value of these assets may not be recoverable and have suffered an impairment loss. If any such indication exists, the recoverable amounts of the intangible assets are estimated in order to determine the extent of the impairment loss, if any. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Such impairment loss is recognized in the Consolidated Statement of Profit and Loss.

Intangible Assets under development are reviewed at the end of each reporting period to determine whether there is any indication that the carrying value of these assets may not be recoverable and have suffered an impairment loss.

Management judgement is required in the area of intangible asset impairment, particularly in assessing: (1) whether an event has occurred that may indicate that the related asset values may not be recoverable; (2) whether the carrying value of an asset can be supported by the recoverable amount, being the higher of fair value less costs of disposal or net present value of future cash flows which are estimated based upon the continued use of the asset in the Group.

• h) Foreign Currency Transactions/Translations:

• i) Transactions in foreign currencies are translated to the respective functional currencies of entities within the Group at exchange rates at the dates of the transactions.

• ii) Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the exchange rate of the reporting date. Non-monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.

• iii) Exchange differences arising on the settlement of monetary items or on translating monetary items at reporting date at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognized in the Consolidated Statement of Profit and Loss in the period in which they arise.

Corporate Overview Statutory Reports Financial Statements 295

Notes

Forming part of the Consolidated Financial Statements

• iv) In case of foreign operations whose functional currency is different from the Parent Company’s functional currency, the assets and liabilities of such foreign operations, including goodwill and fair value adjustments arising upon acquisition, are translated to the reporting currency at exchange rates at the reporting date. The income and expenses of such foreign operations are translated to the reporting currency at the monthly average exchange rates prevailing during the year. Resulting foreign currency differences are recognized in other comprehensive income and presented within equity as part of Foreign Currency Translation Reserve (FCTR). When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is reclassified to the Consolidated Statement of Profit and Loss as a part of gain or loss on disposal.

i) Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

I. Financial Assets Classification

On initial recognition, the Group classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

All financial assets except trade receivable are recognized initially at fair value plus, in case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, Company’s trade receivables that do not contain a significant financing component are measured at transaction price under Ind AS 115 “Revenue from Contracts with Customers”.

Purchases or sales of financial assets including mutual fund that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e. the date that the Group commits to purchase or sell the asset.

Financial assets at amortized cost

A ‘financial asset’ is measured at the amortized cost if both the following conditions are met:

• i) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• ii) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium and fees or costs that are an integral part of the EIR. The EIR amortization is included in Finance Income in the Consolidated Statement of Profit and Loss. The losses arising from impairment are recognized in the Consolidated Statement of Profit and Loss. This category generally applies to trade and other receivables.

Financial assets included within the fair value through profit or loss (FVTPL) category are measured at fair value with all changes recognized in the Consolidated Statement of Profit and Loss.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in below categories:

• i) Debt instruments at amortized cost.

• ii) Debt instruments at fair value through other comprehensive income (FVTOCI).

• iii) Derivatives and equity instruments at fair value through profit or loss (FVTPL).

• iv) Equity instruments measured at fair value through other comprehensive income (FVTOCI).

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Group decides to classify the same either as at fair value through other comprehensive income (FVTOCI) or FVTPL. The Group makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

296 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

If the Group decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in other comprehensive income (OCI). There is no recycling of the amounts from OCI to Consolidated Statement of Profit and Loss, even on sale of such investments.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Consolidated Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Group’s financial statements) when:

• The rights to receive cash flows from the asset have expired, or

• The Group has transferred its rights to

• receive cash flows from the asset or

• has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘passthrough’ arrangement; and either:

• i) the Group has transferred substantially all the risks and rewards of the asset, or

• ii) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Group applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

• i) Trade receivables;

• ii) Financial assets measured at amortized cost (other than trade receivables).

In case of trade receivables, the Group follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognised as loss allowance.

Financial assets classified as amortised cost

(listed as ii above), subsequent to initial recognition, are assessed for evidence of impairment at end of each reporting period basis monitoring of whether there has been a significant increase in credit risk. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding- looking information.

If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognised as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognised as loss allowance.

Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognising impairment loss allowance based on 12-month ECL.

ECL allowance recognised (or reversed) during the period is recognised as expense (or income) in the Consolidated statement of profit and loss under the head ‘Other expenses’.

Write - off

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering the financial asset in its entirety or a portion thereof. A write-off constitutes a derecognition event.

II. Financial Liabilities

Classification

The Group classifies all financial liabilities as subsequently measured at amortized cost, except for financial liabilities measured at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value with changes in fair value being recognized in the Consolidated Statement of Profit and Loss.

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, at amortized cost (loans, borrowings and payables) or as derivatives designated as hedging

Corporate Overview Statutory Reports Financial Statements 297

Notes

Forming part of the Consolidated Financial Statements

instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

For the purpose of subsequent measurement, financial liabilities are classified in two categories:

• i) Financial liabilities at fair value through profit or loss;

• ii) Financial liabilities at amortized cost (loans and borrowings).

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separate embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognized in the Consolidated Statement of Profit and Loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk are recognized in OCI. These gains/losses are not subsequently transferred to Consolidated Statement of Profit and Loss. However, the Group may transfer the cumulative gain or loss within other equity. All other changes in fair value of such liability are recognized in the Consolidated Statement of Profit and Loss.

Financial Liabilities at amortized cost (loans and borrowings)

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in Consolidated Statement of Profit and Loss when the liabilities are derecognized.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as “Finance Costs” in the Consolidated Statement of Profit and Loss.

This category generally applies to interestbearing loans and borrowings.

Financial guarantee contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. If not designated as at FVTPL, are subsequently measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount initially recognized less cumulative amount of income recognized.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Consolidated Statement of Profit and Loss.

Embedded derivatives

If the hybrid contract contains a host that is a financial asset within the scope Ind-AS 109, the Group does not separate embedded derivatives. Rather, it applies the classification requirements contained in Ind AS 109 to the entire hybrid contract. Derivatives embedded in all other host

298 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognized in Consolidated Statement of Profit and Loss, unless designated as effective hedging instruments. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

Derivative financial instruments

The Group uses derivative financial instruments, such as foreign exchange forward contracts to manage its exposure to foreign exchange risks. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Hedge Accounting

The Group uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to highly probable forecast transactions. The Group designates such forward contracts in a cash flow hedging relationship by applying the hedge accounting principles. These forward contracts are stated at fair value at each reporting date. Changes in the fair value of these forward contracts that are designated and effective as hedges of future cash flows are recognized directly in Other Comprehensive Income (‘OCI’) and accumulated in “Cash Flow Hedge Reserve Account” under Other Equity, net of applicable deferred income taxes and the ineffective portion is recognized immediately in the Consolidated Statement

of Profit and Loss. Amounts accumulated in the “Cash Flow Hedge Reserve Account” are reclassified to the Consolidated Statement of Profit and Loss in the same period during which the forecasted transaction affects Consolidated Statement of Profit and Loss. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. For forecasted transactions, any cumulative gain or loss on the hedging instrument recognized in “Cash Flow Hedge Reserve Account” is retained until the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, the net cumulative gain or loss recognized in “Cash Flow Hedge Reserve Account” is immediately transferred to the Consolidated Statement of Profit and Loss.

III. Measurement

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

• (a) Level 1: The fair value of financial instruments quoted in active markets is based on their quoted closing price at the balance sheet date.

• (b) Level 2: The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques using observable market data. Such valuation techniques include discounted cash flows, standard valuation models based on market parameters for interest rates, yield curves or foreign exchange rates, dealer quotes for similar instruments and use of comparable arm’s length transactions.

• (c) Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on observable market data (unobservable inputs).

j) Business combinations:

• i) The Group accounts for each business combination by applying the acquisition method. The acquisition date is the date on which control is transferred to the acquirer. Judgment is applied in determining the acquisition date and determining whether control is transferred from one party to another.

Corporate Overview Statutory Reports Financial Statements 299

Notes

Forming part of the Consolidated Financial Statements

• ii) Control exists when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through power over the entity. In assessing control, potential voting rights are considered only if the rights are substantive.

• iii) The Company measures goodwill as of the applicable acquisition date at the fair value of the consideration transferred, including the recognized amount of any noncontrolling interest in the acquiree, less the net recognized amount of the identifiable assets acquired and liabilities assumed (including contingent liabilities in case such a liability represents a present obligation and arises from a past event, and its fair value can be measured reliably). When the fair value of the net identifiable assets acquired and liabilities assumed exceeds the consideration transferred, a bargain purchase gain is recognized immediately in the OCI and accumulates the same in equity as Capital Reserve where there exists clear evidence of the underlying reasons for classifying the business combination as a bargain purchase else the gain is directly recognized in equity as Capital Reserve, without routing the same through OCI.

• iv) Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Company to the previous owners of the acquiree, and equity interests issued by the Company. Consideration transferred also includes the fair value of any contingent consideration. Consideration transferred does not include amounts related to settlement of pre-existing relationships.

• v) Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise subsequent changes in the fair value of the contingent consideration are recognized in the Consolidated Statement of Profit and Loss.

• vi) Transaction costs that the Company incurs in connection with a business combination, such as finder’s fees, legal fees, due diligence fees and other professional and consulting fees, are expensed as incurred.

• vii) On an acquisition-by-acquisition basis, the Company recognizes any non-controlling

interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets.

• viii) Any goodwill that arises on account of such business combination is tested annually for impairment.

• ix) Acquisitions of non-controlling interests are accounted for as transactions with equity holders in their capacity as equity holders. The difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity.

• k) Income tax:

Income tax expense consists of current and deferred tax. Income tax expense is recognized in the Consolidated Statement of Profit and Loss except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date.

Current tax assets and liabilities are offset only if, the Group:

• i) has a legally enforceable right to set off the recognized amounts; and

• ii) Intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Deferred tax

Deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes (including those arising from consolidation adjustments such as unrealized profit on inventory etc.).

Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are

300 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

reversed when the probability of future taxable profits improves.

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

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

The Group recognises deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, branches and associates, and interests in joint arrangements, except to the extent that both of the following conditions are satisfied:

• i) When the Group is able to control the timing of the reversal of the temporary difference; and

• ii) it is probable that the temporary difference will not reverse in the foreseeable future. Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.

The measurement of deferred taxes reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if:

• i) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and

• ii) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.

Accruals for uncertain tax positions require management to make judgments of potential exposures. Accruals for uncertain tax positions are measured using either the most likely amount or the expected value amount depending on which method the entity expects to better predict the resolution of the uncertainty. Tax benefits are not recognised unless the management based upon its interpretation of applicable laws and regulations and the expectation of how the tax authority will resolve the

matter concludes that such benefits will be accepted by the authorities. Once considered probable of not being accepted, management reviews each material tax benefit and reflects the effect of the uncertainty in determining the related taxable amounts.

• l) Inventories:

Inventories of all procured materials, stock-intrade, finished goods and work-in-progress are valued at the lower of cost (on moving weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

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

Cost of raw material, packing materials and stock-in-trade includes all charges in bringing the goods to their present location and condition, including non-creditable taxes and other levies, transit insurance and receiving charges. However, raw material and packing materials are considered to be realisable at cost if the finished products, in which they will be used, are expected to be sold at or above cost.

Cost of finished goods and work-in-progress includes the cost of raw materials, packing materials, cost of conversion, non-creditable duties and taxes as applicable and other costs incurred in bringing the inventories to their present location and condition. Fixed production overheads are allocated on the basis of normal capacity of production facilities.

Cost of conversion of inventories include costs directly related to the units of production, such as direct labour. They also include a systematic allocation of fixed and variable production overheads that are incurred in converting materials into finished goods.

m) Revenue Recognition:

Sale of Goods

The majority of the Group’s contracts related to product sales include only one performance obligation, which is to deliver products to customers based on purchase orders received. Revenue from sales of products is recognized at a point in time when control of the products is transferred to the customer, generally upon delivery, which the Group has determined is when physical possession, legal title and risks

Corporate Overview Statutory Reports Financial Statements 301

Notes

Forming part of the Consolidated Financial Statements

and rewards of ownership of the products transfer to the customer and the Group is entitled to payment. The timing of the transfer of risks and rewards varies depending on the individual terms of the sales agreements.

Revenue from the sale of goods is measured at the transaction price which is consideration received or receivable, net of returns, Goods and Service Tax (GST) and applicable trade discounts, allowances and chargeback. Revenue includes shipping and handling costs billed to the customer.

In arriving at the transaction price, the Group considers the terms of the contract with the customers and its customary business practices. The transaction price is the amount of consideration the Group is entitled to receive in exchange for transferring promised goods or services, excluding amounts collected on behalf of third parties.

The Group accounts for refund liabilities (sales returns) accrual by recording an allowance for sales returns concurrent with the recognition of revenue at the time of a product sale. This allowance is based on the Group’s estimate of expected sales returns. The Group considers its historical experience of sales returns, levels of inventory in the distribution channel, estimated shelf life, product discontinuances, price changes of competitive products, and the introduction of competitive new products, to the extent each of these factors impact the Group’s business and markets. As required under Ind AS 115, the Group has presented its right to return assets under Other Current Asset and refund liabilities under Other Current Liabilities in the financial statements.

Any amount of variable consideration is recognized as revenue only to the extent that it is highly probable that a significant reversal will not occur. The Group estimates the amount of variable consideration using the expected value method.

The Group disaggregates revenue from contracts with customers by Major products/ service line, geography and timing of the revenue recognition.

Income from research services

Income from research services including sale of technology/know-how (rights, licenses and other intangibles) is recognized in accordance with the terms of the contract with customers when the related performance obligation is completed, or when risks and rewards of ownership are transferred, as applicable.

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

Services Income

Revenue is measured based on the consideration specified in a contract with a customer. Revenue is recognized at a point in time when the Group satisfies performance obligations by transferring the promised services to its customers. Generally, each test represents a separate performance obligation for which revenue is recognized when the test report is generated i.e. when the performance obligation is satisfied.

The Group has assessed that it is primarily responsible for fulfilling the performance obligation to collection centers/channel partners. Accordingly, the revenue has been recognized based on the services rendered to collection centers/channel partners.

Revenues in excess of invoicing are classified as contract assets (referred to as “unbilled revenue”) while invoicing in excess of revenues are classified as contract liabilities (referred to as “unearned revenue”).

Income from Export Benefits and Other Incentives

Export benefits and other incentives available under prevalent schemes are accrued as revenue in the year in which the goods are exported and / or services are rendered only when there is reasonable assurance that the conditions attached to them will be complied with, and the amounts will be received.

• n) Other Income:

Interest income

Interest income is recognized with reference to the effective interest rate method.

Dividend income

Dividend from investment is recognized as revenue when right to receive is established.

• o) Employee Benefits:

Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid

302 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided and the Group will have no legal or constructive obligation to pay further amounts. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. If the contribution payable to the scheme for service received before the reporting date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid.

Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed periodically by an independent qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses and the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income (OCI). Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in Consolidated Statement of Profit and Loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in Consolidated Statement of Profit and Loss. The Group recognizes gains and losses on the

settlement of a defined benefit plan when the settlement occurs.

Other long-term employee benefits

The Group’s net obligation in respect of longterm employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is measured on the basis of a periodical independent actuarial valuation using the projected unit credit method. Remeasurement are recognized in Consolidated Statement of Profit and Loss in the period in which they arise.

Other benefit plans

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Group measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The Group recognizes expected cost of short-term employee benefit as an expense, when an employee renders the related service.

The Group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the reporting date. Actuarial gains/losses are immediately taken to the Consolidated Statement of Profit and Loss and are not deferred.

• p) Share-based payment transactions:

Employees Stock Options Plans (“ESOPs”)/ SESOP (Lupin Subsidiary Companies Employees Stock Option Plan): The grant date fair value of options granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. The expense is recorded for each separately vesting portion of the award as if the award was, in substance, multiple awards. The increase in Other Equity recognized in connection with share based payment transaction is presented as a separate component in equity under “Employee Stock Options Outstanding Reserve”. The amount recognized as an expense is adjusted to reflect the actual number of stock options that vest.

Cash-settled Transactions: The cost of cashsettled transactions is measured initially at fair value at the grant date using a Binomial Option

Corporate Overview Statutory Reports Financial Statements 303

Notes

Forming part of the Consolidated Financial Statements

Pricing Model. This fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The liability is remeasured to fair value at each reporting date upto, and including the settlement date, with changes in fair value recognized in employee benefits expense.

q) Discontinued Operations:

A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which:

• represents a separate major line of business or geographic area of operations;

• is part of a single coordinated plan to dispose of a separate major line of business or geographic area of operations; or

• is a subsidiary acquired exclusively with a view to resale.

Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held-for-sale.

When an operation is classified as a discontinued operation, the comparative Statement of Profit and Loss and OCI is re-presented as if the operation had been discontinued from the start of the comparative year.

r) Leases:

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in Ind AS 116.

Group as a lessee

The Group accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative standalone price of the lease component and the aggregate standalone price of the non-lease components.

• i) Right-of-use asset

The Group recognizes right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception

shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of rightof- use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognized in the Consolidated Statement of Profit and Loss.

ii) Lease Liabilities

• The Group measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate cannot be readily determined, the Group uses incremental borrowing rate (IBR). The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Group estimates the IBR using observable inputs when available and is required to make certain entityspecific estimates. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Group is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to

304 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The Group recognizes the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and Consolidated Statement of Profit and Loss depending upon the nature of modification. Where the carrying amount of the right-ofuse asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Group recognizes any remaining amount of the re-measurement in Consolidated Statement of Profit and Loss.

• iii) Short-term leases and leases of low-value assets

The Group has elected not to apply the requirements of Ind AS 116 Leases to shortterm leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

• s) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Group has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. If effect of the time value of money is material, provisions are discounted using an appropriate discount rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Provision for asset retirement obligations is measured at the present value of the best estimate of the cost of restoration at the time of asset retirement.

Contingent liabilities are disclosed in the Notes to the Consolidated Financial Statements. Contingent liabilities are disclosed for:

• i) possible obligations which will be confirmed only by future events not wholly within the control of the Group, or

• ii) present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statements. A contingent asset is disclosed where an inflow of economic benefits is probable. Contingent assets are assessed continually and, if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

• t) Cash and Cash equivalents:

Cash and cash equivalents comprises cash on hand, cash at bank and short term deposits with an original maturity of three months or less, that are readily convertible into known amounts of cash and subject to insignificant risk of changes in value.

For the purpose of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management.

• u) Borrowing costs:

Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds and is measured with reference to the effective interest rate (EIR) applicable to the respective borrowing. Borrowing costs include interest costs measured at EIR and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs, allocated to qualifying assets, pertaining to the period from commencement of activities relating to construction/ development of the qualifying asset up to the date of capitalization of such asset or upto the date the assets are ready for its intended use are added to the cost of the assets. Capitalization of borrowing costs is suspended and charged to the Consolidated Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

All other borrowing costs are recognized as an expense in the period which they are incurred.

Corporate Overview Statutory Reports Financial Statements 305

Notes

Forming part of the Consolidated Financial Statements

v) Government Grants:

Government grants are initially recognized at fair value if there is reasonable assurance that grant will be received and the Group will comply with the conditions associated with the grant;

• In case of capital grants, they are then recognized in Consolidated Statement of Profit and Loss as other income on a systematic basis over the useful life of the asset.

• In case of grants that compensate the Group for expenses incurred are recognized in Consolidated Statement of Profit and Loss on a systematic basis in the periods in which the expenses are recognized.

Export benefits and other incentives available under prevalent schemes are accrued as revenue in the year in which the goods are exported and/or services are rendered only when there is reasonable assurance that the conditions attached to them will be complied with, and the amounts will be received.

The Group has received approval under the Production Linked Incentive Scheme of the Government of India for specific product categories. Incentive under the scheme is subject to meeting certain committed investments and defined incremental sales threshold. Such grants are recognized as other operating revenue when there is a reasonable assurance that the Group will comply with all necessary conditions attached to the grant. Income from such grants is recognized on a systematic basis over the periods to which they relate.

• w) Earnings per share:

Basic earnings per share is computed by dividing the profit/(loss) after tax by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for the events for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares). Diluted earnings per share is computed by dividing the profit/(loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares. The calculation of diluted earnings per share does

not assume conversion, exercise, or other issue of potential ordinary shares that would have an antidilutive effect on earnings per share.

• x) Insurance claims:

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect the ultimate collection.

• y) Current vs. Non-current:

The Group presents assets and liabilities in the balance sheet based on current / non-current classification. An asset is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Group classifies all other liabilities as noncurrent.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Group has identified twelve months as its operating cycle.

1C. RECENT ACCOUNTING PRONOUNCEMENTS:

Ministry of Corporate Affairs (“MCA”) has not notified any new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time which are applicable effective 1[st] April 2024.

306 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

==> picture [452 x 632] intentionally omitted <==

----- Start of picture text -----

(₹ in million) Total 73,974.9 5,737.6 574.2 1,303.4 80,441.7 8,415.2 0.2 803.7 442.9 88,496.3 32,234.2 5,231.3 519.1 599.3 37,545.7 5,622.2 708.9 195.6 42,654.6 45,841.7 42,896.0
Office Equipment 2,788.8 252.8 153.4 57.5 2,945.7 665.1 0.2 149.8 1.2 3,462.4 2,328.7 223.4 153.3 50.7 2,449.5 253.1 148.8 14.0 2,567.8 894.6 496.2
Vehicles 417.7 59.1 120.7 26.5 382.6 32.9 - 78.0 1.6 339.1 226.5 70.2 114.7 16.1 198.1 64.9 76.2 2.8 189.6 149.5 184.5
Furniture and Fixtures 1,666.0 119.5 8.8 29.7 1,806.4 93.6 - 13.2 11.0 1,897.8 1,051.7 133.1 8.1 27.3 1,204.0 134.8 10.7 10.0 1,338.1 559.7 602.4
Plant and Equipments 44,116.5 4,617.0 258.4 535.5 49,010.6 6,371.1 - 543.6 182.4 55,020.5 23,064.8 3,888.6 220.8 328.9 27,061.5 4,206.6 458.3 106.7 30,916.5 24,104.0 21,949.1
-
on Leased Premises 2,407.2 106.2 3.2 153.4 2,663.6 79.3 11.5 29.6 2,761.0 1,707.7 139.6 2.5 108.0 1,952.8 145.2 11.5 22.6 2,109.1 651.9 710.8 8,474.7 6,361.2 5,953.8 - 66.1 8,948.2
Improvements (₹ in million)
As at 31.03.2023
Buildings 20,555.7 583.0 26.8 377.5 21,489.4 1,162.8 - 7.6 145.1 22,789.7 3,854.8 776.4 19.7 68.3 4,679.8 817.6 3.4 39.5 5,533.5 17,256.2 16,809.6 As at 31.03.2024 8,948.2 5,485.9 8,262.0 260.8 45.4 5,956.7
Freehold Land 2,023.0 - 2.9 123.3 2,143.4 10.4 - - 72.0 2,225.8 - - - - - - - - - 2,225.8 2,143.4
Refer note 69 for CWIP ageing and note 40 for details of Expenditure incurred prior to commencement of commercial production. Refer note 55 for details of Impairment Loss
Particulars At cost or deemed cost As at 01.04.2022 Additions Disposals Translation Adjustments As at 31.03.2023 Additions Taken over on Acquisition Disposals Translation Adjustments As at 31.03.2024 Accumulated Depreciation and Impairment As at 01.04.2022 Depreciation charge for the year Disposals Translation Adjustments As at 31.03.2023 Depreciation charge for the year Disposals Translation Adjustments As at 31.03.2024 Carrying Amount As at 31.03.2024 As at 31.03.2023 a) Cost of Buildings includes cost of shares in co-operative societies of ₹ 1,000/- (previous year ₹ 1,000/-). b) The Group has not revalued any of its Property Plant and Equipment. 3. Capital Work-In-Progress (CWIP) Particulars Opening Balance Additions during the year Capitalised during the year Impairment during the year Translation Adjustments Closing Balance a) b)
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 307

Notes

Forming part of the Consolidated Financial Statements

4. Other Intangible Assets

==> picture [486 x 342] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Product
Particulars Computer Customer Supplier Related Total
Software Relationships Contracts Intangibles
At cost or deemed cost
As at 01.04.2022 1,047.3 880.2 449.1 56,585.1 58,961.7
Taken over on Acquisition - - - 3,001.4 3,001.4
Additions 514.2 - - 6,436.7 6,950.9
Disposals 49.3 - 26.1 1,523.2 1,598.6
Translation Adjustments 28.7 (26.6) (13.6) 4,397.4 4,385.9
As at 31.03.2023 1,540.9 853.6 409.4 68,897.4 71,701.3
Taken over on Acquisition 14.2 281.6 - 647.1 942.9
Additions 422.2 - 36.4 4,611.0 5,069.6
Disposals 3.5 - - 56.2 59.7
Translation Adjustments 10.1 (13.9) (6.9) 961.3 950.6
As at 31.03.2024 1,983.9 1,121.3 438.9 75,060.6 78,604.7
Accumulated Amortisation and Impairment
As at 01.04.2022 595.5 13.2 6.7 51,269.4 51,884.8
Amortisation charge for the year 138.9 85.5 42.2 1,851.3 2,117.9
Impairment charge for the year - - - 238.5 238.5
Disposals 49.3 - 1.6 1,444.2 1,495.1
Translation Adjustments 160.5 (0.5) (0.3) 3,881.1 4,040.8
As at 31.03.2023 845.6 98.2 47.0 55,796.1 56,786.9
Amortisation charge for the year 265.2 138.9 42.2 2,710.8 3,157.1
Impairment charge for the year - - 15.6 1,308.5 1,324.1
Disposals - - - 43.6 43.6
Translation Adjustments 9.3 (2.0) (1.0) 826.8 833.1
As at 31.03.2024 1,120.1 235.1 103.8 60,598.6 62,057.6
Carrying Amount
As at 31.03.2024 863.8 886.2 335.1 14,462.0 16,547.1
As at 31.03.2023 695.3 755.4 362.4 13,101.3 14,914.4
----- End of picture text -----

a) Refer note 55 for details of Impairment Loss.

b) Accumulated Amortization and Impairment Loss includes impairment loss in opening balance of ₹ 34,282.5 million (previous year ₹ 31,447.7 million) and in closing balance of ₹ 36,097.1 million (previous year ₹ 34,282.5 million).

c) Refer note 51 for Asset Acquisition disclosure.

d) Product related intangibles includes Trademarks and licenses, Dossiers/Marketing rights and Knowhow.

e) The Group has not revalued any of its Intangible Assets.

308 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

5. Right-Of-Use Assets (ROU)

==> picture [486 x 286] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Plant & Furniture & Office
Particulars Land Buildings Equipment Fixtures Vehicles Equipment Total
At cost or deemed cost
As at 01.04.2022 1,137.4 3,639.7 26.4 396.3 467.9 57.7 5,725.4
Additions - 521.6 22.0 - 312.5 17.8 873.9
Disposals - 114.0 26.4 - 117.1 32.1 289.6
Translation Adjustments - 114.9 - - 14.5 4.3 133.7
As at 31.03.2023 1,137.4 4,162.2 22.0 396.3 677.8 47.7 6,443.4
Additions - 476.3 6.6 - 315.9 26.1 824.9
Disposals - 487.6 - 351.6 174.6 8.1 1,021.9
Translation Adjustments - 22.5 - - 10.9 15.7 49.1
As at 31.03.2024 1,137.4 4,173.4 28.6 44.7 830.0 81.4 6,295.5
Accumulated Depreciation
As at 01.04.2022 74.9 1,381.3 22.0 224.7 213.4 51.5 1,967.8
Depreciation charge for the year 15.3 773.5 8.1 80.9 178.7 7.6 1,064.1
Disposals - 54.9 26.4 - 89.2 31.1 201.6
Translation Adjustments - 49.1 - - 6.2 3.6 58.9
As at 31.03.2023 90.2 2,149.0 3.7 305.6 309.1 31.6 2,889.2
Depreciation charge for the year 15.3 813.2 9.0 80.9 243.4 14.5 1,176.3
Disposals - 403.9 - 351.6 167.9 8.1 931.5
Translation Adjustments - 12.6 - - 4.1 1.0 17.7
As at 31.03.2024 105.5 2,570.9 12.7 34.9 388.7 39.0 3,151.7
Carrying Amount
As at 31.03.2024 1,031.9 1,602.5 15.9 9.8 441.3 42.4 3,143.8
As at 31.03.2023 1,047.2 2,013.2 18.3 90.7 368.7 16.1 3,554.2
----- End of picture text -----

a) Refer note 44 for leases disclosure.

b) The Group has not revalued any of its Right- of- Use assets.

6. Intangible Assets Under Development (IAUD)

6. Intangible Assets Under Development (IAUD)
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Opening Balance	3,431.7 2,988.1
Additions during the year	361.5 899.8
Capitalised during the year	1,640.3 474.1
Impairment during the year	427.6 155.3
Translation Adjustments	43.3 173.2
Closing Balance	1,768.6 3,431.7

a) Refer note 55 for details of Impairment loss.

b) Refer note 70 for IAUD ageing.

7. Investments Accounted For Using Equity Method

==> picture [486 x 112] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars Number Face Value As at 31.03.2024 As at 31.03.2023
Unquoted (fully paid)
In Joint Venture:
- YL Biologics Limited, Japan [Refer note 54(b)] 450 JPY 269.1 300.7
(450)
Total 269.1 300.7
Shares do not have face value
i) Aggregate amount of unquoted investments 269.1 300.7
ii) Aggregate amount for impairment in value of investments - -
----- End of picture text -----

iii) Previous year numbers are within brackets below current year numbers

Corporate Overview Statutory Reports Financial Statements 309

Notes

Forming part of the Consolidated Financial Statements

8. Non-Current Investments

==> picture [486 x 618] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars Number Face Value As at 31.03.2024 As at 31.03.2023
a) In Equity shares at Fair Value through Profit or Loss (fully paid)
Unquoted
- Biotech Consortium India Limited, India 50,000 ₹ 0.5 0.5
(50,000) 10
- Enviro Infrastructure Co. Limited, India 100,000 ₹ 1.0 1.0
(100,000) 10
- BEIL Infrastructure Limited, India 4,410 ₹
[31.03.2024 - ₹ 44,100/-, 31.03.2023 - ₹ 44,100/-] (4,410) 10
- Narmada Clean Tech Limited, India 1,100,388 ₹ 11.0 11.0
(1,100,388) 10
- Tarapur Environment Protection Society, India 72,358 ₹ 7.2 7.2
(72,358) 100
- Continum Green Energy, India 1,206,400 ₹ 12.1 -
10
- nReach One (Pty) Limited, South Africa 9,650,000 ZAR 42.6 44.6
(9,650,000) 1
- Sai Wardha Power Limited, India 3,007,237 - -
[Aggregate impairment of ₹ 30.1 million (previous year - ₹ 30.1 million)] (3,007,237)
74.4 64.3
b) Debentures at Fair Value through Profit or Loss (fully paid)
Unquoted
- Continum Green Energy, India 3,432,000 ₹ 34.3 -
[0.0% Optionally Convertible Debentures] 10
34.3 -
c) In Bonds/Debentures/Securities at Amortised Cost
- Non Convertible Debentures
Quoted
- 6.55% Kotak Mahindra Prime Ltd., India 500 ₹ 522.8 -
1,000,000
- 8.25% Kotak Mahindra Prime Ltd., India 500 ₹ 532.2 -
1,000,000
- 7.75% Tata Capital Ltd., India 500 ₹ 526.6 -
1,000,000
- Government Securities
Unquoted
- National Saving Certificates [Deposited with Government Authority]
[31.03.2024 - ₹ 5,500/-, 31.03.2023 - ₹ 5,500/-]
1,581.6 -
d) In Membership Share in LLP, at Fair Value through Profit or Loss
Unquoted
- ABCD Technologies LLP, India 297.2 406.3
[As at 31.03.2024, the Company had a 6.45% (31.03.2023 - 6.45%) share of
profit/loss and voting rights. The investment is locked upto April 24, 2024]
- Cleanwin Energy 12 LLP, India 9.9 -
[As at 31.03.2024, the Company had a 26.1% (31.03.2023 - Nil) share of
voting rights]
- Cleanwin Energy 9 LLP, India 6.0 -
[As at 31.03.2024, the Company had a 26.1% (31.03.2023 - Nil) share of
voting rights]
- Cleanwin Energy 10 LLP, India 4.5 -
[As at 31.03.2024, the Company had a 26.1% (31.03.2023 - Nil) share of
voting rights]
317.6 406.3
Total 2,007.9 470.6
a) Aggregate amount of quoted investments and market value thereof
Book value 1,581.6 -
Market value 1,587.6 -
b) Aggregate amount of unquoted investments 426.3 470.6
c) Aggregate amount of impairment in value of investment 30.1 30.1
d) Previous year numbers are within brackets below current year numbers
----- End of picture text -----

310 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

9. Non-Current Loans

9. Non-Current Loans
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured, considered good
Loans to Employees (includingloan for Housing/Medical/Others)	35.7 40.4
Total	35.7 40.4

[There are no non-current loans which have significant increase in credit risk]

10. Other Non-Current Financial Assets

10. Other Non-Current Financial Assets
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured, considered good unless otherwise stated
Security Deposits
- with Related Parties [Refer note 64 C]	7.4 7.4
- with Others	787.6 802.9
Earmarked Bank Deposits against guarantees & other commitments	93.0 176.8
Export Benefits receivable / Refund due from Government Authorities	306.4 -
Total	1,194.4 987.1

11. Other Non-Current Assets

11. Other Non-Current Assets
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Capital Advances	666.2 1,378.6
Export Benefits receivable / Balances with Government Authorities (Drawback / Customs and Excise duties receivable)	431.3 13.6
Prepaid Expenses	78.8 386.6
Other Advances (includespaid underprotest)	201.3 201.3
Total	1,377.6 1,980.1

12. Inventories

==> picture [486 x 170] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Raw Materials 9,358.4 10,002.2
Packing Materials 3,660.0 3,403.7
Work-in-Progress 6,645.6 6,318.3
Finished Goods 9,367.0 7,389.3
Stock-in-Trade 12,867.4 12,327.9
Consumable Stores and Spares 2,709.2 2,556.0
Goods-in-Transit
- Raw Materials 528.1 397.1
- Packing Materials 176.8 100.4
- Stock-in-Trade 4,192.1 2,415.9
- Consumable Stores and Spares 34.4 6.8
Total 49,539.0 44,917.6
----- End of picture text -----

During the year, the Group recorded inventory write-downs of ₹ 2,573.1 million (previous year ₹ 1,273.3 million). These adjustments were included in cost of material consumed and changes in inventories.

Corporate Overview Statutory Reports Financial Statements

311

Notes

Forming part of the Consolidated Financial Statements

13. Current Investments

==> picture [486 x 183] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
- Measured at Amortised Cost
Quoted
In Non Convertible Debentures 506.9 -
In Commercial Papers 2,416.4 -
- Measured at Fair Value through Profit and Loss
Unquoted
In Mutual Funds 5,546.0 4,397.7
Total 8,469.3 4,397.7
a) Aggregate amount of quoted investments and market value thereof
Book value 2,923.3 -
Market value 2,948.1 -
b) Aggregate amount of unquoted investments 5,546.0 4,397.7
- -
c) Aggregate amount of impairment in value of investment
- -
d) Unrealised Loss on Mutual Fund Investments (net) as adjusted above
----- End of picture text -----

14. Trade Receivables

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured
- Considered Good	47,503.4 44,997.0
- Credit Impaired	454.1 300.8
	47,957.5 45,297.8
Less: Allowances for credit losses	1,037.0 490.8
Total	46,920.5 44,807.0

Refer note 67 for Trade Receivable ageing. [There are no other trade receivables which have significant increase in credit risk. Refer note 59(C) for information about credit risk and market risk for reference]

15. Cash and Cash Equivalents

==> picture [486 x 101] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Bank Balances
- In Current Accounts (including money-in-transit) 6,827.0 7,600.5
- In EEFC Account 74.8 28.9
- In Deposit Accounts 2,721.5 4,635.0
Cheques on hand 193.5 42.0
Cash on hand 16.0 11.7
Total 9,832.8 12,318.1
----- End of picture text -----

16. Other Bank Balances

16. Other Bank Balances
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Earmarked Balances with Banks
- Unpaid dividend accounts	34.4 42.0
- Deposits against guarantees and other commitments	115.0 111.1
Bank Deposits with original maturityof more than 3 months but less than 12 months	2,043.2 460.1
Total	2,192.6 613.2

312 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

17. Current Loans

17. Current Loans
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured, considered good
Loans to Employees (includingloan for Housing/Medical/Others)	25.8 21.2
Total	25.8 21.2

[There are no current loans which have significant increase in credit risk]

18. Other Current Financial Assets

18. Other Current Financial Assets
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured, considered good
Export Benefits receivable / Refund due from Government Authorities	4,721.8 3,150.9
Security Deposits	223.0 64.9
Others (includes miscellaneous receivables)	1,440.1 2,345.1
Total	6,384.9 5,560.9

19. Other Current Assets

==> picture [486 x 152] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Advances to Employees 126.7 110.9
Advances to Vendors
- Considered Good 2,460.2 1,695.4
- Credit Impaired 77.0 168.0
2,537.2 1,863.4
Less: Impairment Allowances for Credit Impaired 77.0 168.0
2,460.2 1,695.4
Prepaid Expenses 998.9 1,136.2
Export Benefits receivable / Balances with Government Authorities (GST credit / VAT/ Cenvat /
Service tax / refund receivable) 7,068.3 8,515.4
Assets Recoverable From Customers 51.4 52.2
Total 10,705.5 11,510.1
----- End of picture text -----

20. Equity Share Capital

• a) Equity Share Capital

==> picture [486 x 81] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 As at 31.03.2023
Particulars
No. of Shares ₹ in million No. of Shares ₹ in million
Authorised
Equity Shares of ₹ 2 each 1,000,000,000 2,000.0 1,000,000,000 2,000.0
Issued, Subscribed and Paid up
Equity Shares of ₹ 2 each fully paid 455,678,908 911.4 454,981,335 910.0
Total 455,678,908 911.4 454,981,335 910.0
----- End of picture text -----

b) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period

==> picture [486 x 63] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 As at 31.03.2023
Particulars
No. of Shares ₹ in million No. of Shares ₹ in million
Equity Shares outstanding at the beginning of the year 454,981,335 910.0 454,475,014 909.0
Equity Shares issued during the year pursuant to exercise of 697,573 1.4 506,321 1.0
ESOPs
Equity Shares outstanding at the end of the year 455,678,908 911.4 454,981,335 910.0
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 313

Notes

Forming part of the Consolidated Financial Statements

c) Rights attached to Equity Shares

The Company has only one class of equity shares with voting rights having a par value of ₹ 2 per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting.

During the year ended March 31, 2024, the amount of dividend per equity share distributed to equity shareholders is ₹ 4 (Previous year ended March 31, 2023, ₹ 4).

In the event of liquidation of the Company, the shareholders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

d) Details of shares held by each shareholder holding more than 5% equity shares

==> picture [486 x 63] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 As at 31.03.2023
Name of Shareholder No. of Shares Percentage of No. of Shares Percentage of
Holding Holding
Lupin Investments Private Limited 207,194,390 45.47 207,194,390 45.54
Life Insurance Corporation of India 26,758,302 5.87 37,448,551 8.23
ICICI Prudential Bluechip Fund 19,644,902 4.31 26,136,991 5.74
----- End of picture text -----

• e) Shares held by promoters at the end of the year

==> picture [486 x 173] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 As at 31.03.2023
Promoter name No. of % of % Change No. of % of % Change
Shares total during the Shares total during the
shares year shares year
D. B. Gupta HUF 647,580 0.14 - 647,580 0.14 -
Manju D. Gupta 3,871,162 0.85 - 3,871,162 0.85 -
Nilesh D. Gupta 901,064 0.20 - 901,064 0.20 -
Kavita Gupta 200,170 0.04 - 200,170 0.04 -
Veda Nilesh Gupta 72,954 0.02 4.03 70,129 0.02 6.29
Neel Deshbandhu Gupta 28,278 0.01 8.73 26,008 0.01 18.99
Shefali Nath Gupta 1,752 0.00 - 1,752 0.00 -
Lupin Investments Private Limited 207,194,390 45.47 - 207,194,390 45.54 0.77
Manju D. Gupta (As a Trustee of Gupta Family Trust) 1,000 0.00 - 1,000 0.00 -
Vinita Gupta 327,424 0.07 - 327,424 0.07 -
Anuja Gupta 725,705 0.16 - 725,705 0.16 -
Richa Gupta 233,265 0.05 - 233,265 0.05 -
----- End of picture text -----

f) Shares reserved for issuance under Stock Option Plans of the Company

==> picture [486 x 112] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 As at 31.03.2023
Particulars
No. of Shares ₹ in million No. of Shares ₹ in million
Lupin Employees Stock Option
Plan 2003 61,739 0.1 78,705 0.2
Plan 2005 6,950 0.0 8,350 0.0
Plan 2011 644,172 1.3 806,452 1.6
Plan 2014 584,852 1.2 848,347 1.7
Lupin Subsidiary Companies Employees Stock Options
Plan 2011 533,274 1.1 595,618 1.2
Plan 2014 1,040,352 2.1 1,237,780 2.5
----- End of picture text -----

• g) Aggregate number of shares issued during last five years pursuant to Stock Option Plans of the Company

Particulars	As at 31.03.2024 Aggregate No. of Shares	As at 31.03.2023 Aggregate No. of Shares
EquityShares issued under various Stock Option Plans of the Company	3,185,211	2,898,485

• h) No shares have been allotted without payment being received in cash or by way of bonus shares during the period of five years immediately preceding the Balance Sheet date.

314 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

21. Non-Current Borrowings

21. Non-Current Borrowings
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured
Term Loans from Banks [Refer note 25]	- 275.1
Total	- 275.1

a) The above loan taken for acquisition by a subsidiary located in Australia was prepaid during the year. The loan carried interest rate of 4.90% p.a. This loan was repayable in 12 equal quarterly installments commencing from April 23, 2023 and ending January 14, 2026.

b) The Group has not defaulted on repayment of loans and interest during the year.

22. Other Non-Current Financial Liabilities

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Payable for Capital Expenditure	498.0 1,178.4
Payable for Purchase of Non-Current Investment	664.1 699.5
Employee Benefits Payables	400.7 109.3
Other Payables	- 26.4
Total	1,562.8 2,013.6

23. Non-Current Provisions

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Provisions for Employee Benefits [Refer note 29]
Gratuity [Refer note 46 (ii)]	2,325.1 1,968.3
Retirement Benefits	280.7 243.3
Compensated Absences	872.2 939.0
Provident Fund [Refer note 46 (ii)]	276.0 279.7
Total	3,754.0 3,430.3

24. Other Non-Current Liabilities

		(₹ in million)
Particulars	As at 31.03.2024	As at 31.03.2023
Deferred Revenue [Refer note 41(d)]	1,894.0	1,600.2
Total	1,894.0	1,600.2

25. Current Borrowings

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured
Loans from Banks	26,699.1 42,165.4
Total	26,699.1 42,165.4

a) Unsecured Loans comprise of Working Capital Loan carrying market driven interest rates.

b) Unsecured Loans of ₹ 3,565.5 million availed by a subsidiary company located in Brazil carries interest rate 12.80% and this loan is guaranteed by the Company.

c) Unsecured Loans of ₹ 181.3 million comprise of Working Capital Loan carrying interest rate in range 6.90% to 9.20%.

d) Unsecured Loans of ₹ 22,952.3 million availed by a subsidiary company located in USA carries interest rate of Secured Overnight Financing Rate (SOFR) plus 1.00% p.a. and this loan is guaranteed by the Company.

e) Current borrowings are repayable within 12 months.

f) The Group has not defaulted on repayment of loan and interest during the year.

g) The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of account.

Corporate Overview Statutory Reports Financial Statements 315

Notes

Forming part of the Consolidated Financial Statements

26. Trade Payables

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Total outstanding dues of Micro Enterprises and Small Enterprises [Refer note 58]	806.2 763.3
Total outstandingdues of Other than Micro Enterprises and Small Enterprises	28,774.9 24,552.0
Total	29,581.1 25,315.3

Refer note 68 for Trade Payable ageing.

27. Other Current Financial Liabilities

==> picture [486 x 125] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Unpaid Dividend 34.4 42.0
Derivative Liabilities [Refer note 61]
- Forward Contracts 0.1 206.3
Payable for Capital Expenditure 1,582.1 1,384.4
Payable for Purchase of Non-Current Investment 561.8 726.5
Trade Deposits received 128.5 118.9
Employee Benefits Payables 4,192.5 3,433.0
Other Payables (Includes donation payable, retention money, etc.) 289.8 41.3
Total 6,789.2 5,952.4
----- End of picture text -----*

*During the year, ₹ 9.1 million has been credited to Investor Education and Protection Fund relating to FY 15-16.

28. Other Current Liabilities

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Statutory Dues Payables (includes GST, Provident Fund, Withholding Taxes etc.)	1,997.5 1,519.2
Refund Liabilities	5,377.0 3,759.5
Deferred Revenue [Refer note 41(d)]	179.0 479.1
Deferred Government Grant	32.7 106.7
Advances from customers	249.9 152.5
Other Payables (includes accured rebates)	3,602.9 2,692.0
Total	11,439.0 8,709.0

29. Current Provisions

29.Current Provisions
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Provisions for Employee Benefits [Refer note 23]
Gratuity [Refer note 46(ii)]	433.1 386.3
Retirement Benefits	18.7 8.9
Compensated Absences	641.2 678.4
Other Provisions
For European Commission Fine [Refer note 57]	4,156.4 4,077.5
Total	5,249.4 5,151.1

30. Revenue From Operations

Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Sale [Refer note 41] Goods	193,391.9 162,132.6
Service Income	671.4 254.5
Research Services	2,500.1 312.7
	196,563.4 162,699.8

316 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

|Notes
Forming part of the Consolidated Financial Statements
LUPIN LIMITED| Integrated Report 2023-2024||
|---|---|
|Particulars|(₹ in million)
Year ended
31.03.2024
Year ended
31.03.2023|
|Other Operating Revenue||
|Export Benefits and Other Incentives|2,991.4
1,417.8|
|Service Charges|-
174.7|
|Insurance Claims|135.9
81.0|
|Business Compensation and Settlement Income|67.1
1,122.1|
|Scrap Sales|208.2
195.1|
|Miscellaneous Income|142.2
726.1|
||3,544.8
3,716.8|
|Total|200,108.2
166,416.6|

31. Other Income

==> picture [486 x 146] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Income on Financial Assets carried at amortised cost
Interest on Deposits with Banks 328.6 204.9
Interest on Commercial Papers, Debentures and others 133.7 119.4
Income on Financial Assets carried at fair value through profit or loss
Net gain on Sale of Mutual Fund Investments 296.5 117.1
Unrealised Gain on Mutual Fund Investments (net) 57.4 14.1
Unrealised Gain/(Loss) on Non-Current Investment (109.0) 3.6
Provisions no longer required written back 0.6 1.9
Profit on Sale of Property, Plant & Equipment/Intangible Assets (net) 11.7 209.8
Miscellaneous Income (including Interest on Income Tax Refund) 482.2 62.8
Total 1,201.7 733.6
----- End of picture text -----

32. Cost Of Materials Consumed

32.Cost Of Materials Consumed
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Raw Materials Consumed	31,433.8 29,319.4
PackingMaterials Consumed	9,988.1 7,558.7
Total	41,421.9 36,878.1

33. Changes in Inventories of Finished Goods, Work-In-Progress and Stock-In-Trade [(Increase)/Decrease]

==> picture [486 x 210] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Opening Stock:
Finished Goods 7,389.3 7,888.1
Stock-in-Trade 14,743.8 15,565.7
Work-in-Progress 6,318.3 6,119.1
28,451.4 29,572.9
Less:
Closing Stock:
Finished Goods 9,367.0 7,389.3
Stock-in-Trade 17,059.5 14,743.8
Work-in-Progress 6,645.6 6,318.3
33,072.1 28,451.4
Changes In Inventories:
Finished Goods (1,977.7) 498.8
Stock-in-Trade (2,315.7) 821.9
Work-in-Progress (327.3) (199.2)
Foreign Currency Translation Difference 46.3 415.8
Total (4,574.4) 1,537.3
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 317

Notes

Forming part of the Consolidated Financial Statements

34. Employee Benefits Expense

34.Employee Benefits Expense
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Salaries and Wages	29,596.6 26,601.8
Contribution to Provident and Other Funds	2,654.7 2,278.5
Retirement Benefits Expense	188.0 187.7
Share Based Payment Expense [Refer note 45]	1,144.3 584.3
Staff Welfare Expenses	1,362.1 1,219.2
Total	34,945.7 30,871.5

35. Finance Costs

35.Finance Costs
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Interest on Financial Liabilities - borrowings carried at amortised cost	2,285.2 1,925.9
Net Interest on net defined benefit liability	287.0 270.5
Interest cost on Finance lease obligation [Refer note 44]	180.2 205.7
Other Borrowing Costs	325.7 340.9
Interest on Income Tax	38.0 -
Total	3,116.1 2,743.0

36. Other Expenses

==> picture [486 x 345] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Processing Charges 2,540.2 1,756.3
Stores and Spares Consumed 5,033.1 4,851.3
Repairs and Maintenance:
- Buildings 333.3 360.2
- Plant and Machinery 1,778.5 1,855.0
- Others 2,569.9 2,308.7
Rent and Other Hire Charges [Refer note 44] 696.9 702.7
Rates and Taxes 1,818.9 1,667.4
Insurance 1,167.2 1,054.5
Power and Fuel 4,930.7 4,796.8
Contract Labour Charges 1,902.5 1,598.3
Selling and Promotion Expenses 9,038.6 7,682.2
Commission and Brokerage 1,272.8 1,135.9
Freight and Forwarding 3,121.6 3,069.1
Postage and Telephone Expenses 410.8 408.9
Travelling and Conveyance 3,686.3 2,808.6
Legal and Professional Charges 12,295.5 9,024.4
[Net of recoveries of ₹ 16.2 million (previous year ₹ 121.6 million)]
Donations [Refer note 72] 319.3 248.4
Clinical and Analytical Charges 3,238.3 1,472.8
Bad Trade Receivables/Advances written off 1.9 34.3
[Net of provision of earlier years adjusted ₹ 223.8 million (previous year ₹ 47.7 million)]
Impairment Allowances for Doubtful Trade Receivables/Deposits/Advances (net) 653.5 117.2
Corporate Social Responsibility Expenses 252.6 356.5
Directors Sitting Fees 1.2 1.7
Business Compensation and Settlement Expenses 2,134.9 1,662.5
Miscellaneous Expenses 1,529.2 1,568.1
Total 60,727.7 50,541.8
----- End of picture text -----

318 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

37. The Consolidated Financial Statements present the consolidated accounts of Lupin Limited and its following subsidiaries and its joint venture

==> picture [486 x 400] intentionally omitted <==

----- Start of picture text -----

Country of Proportion of Ownership Interest
Name of Subsidiaries/Joint Venture
Incorporation As at 31.03.2024 As at 31.03.2023
Lupin Pharmaceuticals, Inc. USA 100% [1] 100% [1]
Hormosan Pharma GmbH Germany 100% [2] 100% [2]
Pharma Dynamics (Proprietary) Limited South Africa 100% [2] 100% [2]
Lupin Australia Pty Limited Australia 100% 100%
Nanomi B.V. Netherlands 100% 100%
Lupin Atlantis Holdings SA Switzerland 100% 100%
Multicare Pharmaceuticals Philippines Inc. Philippines 51% [2] 51% [2]
Generic Health Pty Limited Australia 100% [2] 100% [2]
Bellwether Pharma Pty Limited (upto 11.06.2023) Australia 100% [3] 100% [3]
Lupin Healthcare (UK) Limited UK 100% [4] 100% [4]
Lupin Pharma Canada Limited Canada 100% [4] 100% [4]
Lupin Diagnostics Limited (formerly known as Lupin Healthcare Limited) India 100% 100%
Lupin Mexico S.A. de C.V. Mexico 100% [2] 100% [2]
Lupin Philippines Inc. Philippines 100% [2] 100% [2]
Generic Health SDN. BHD. Malaysia 100% [2] 100% [2]
Lupin Inc. USA 100% [2] 100% [2]
Laboratorios Grin S.A. de C.V. Mexico 100% [8] 100% [8]
Medquímica Indústria Farmacêutica LTDA Brazil 100% [5] 100% [5]
Novel Laboratories, Inc. USA 100% [6] 100% [6]
Lupin Research Inc. USA 100% [6] 100% [6]
Lupin Europe GmbH Germany 100% [4] 100% [4]
Lupin Management Inc. USA 100% [6] 100% [6]
Lupin Biologics Limited India 100% 100%
Lupin Oncology Inc. USA 99.3% 99.3%
Lupin Foundation (under de-registering) India 100% 100%
Lupin Digital Health Limited India 100% 100%
Avenue Coral Springs LLC USA 100% [9] 100% [9]
Southern Cross Pharma Pty Ltd Australia 100% [3] 100% [3]
Lupin Life Sciences Limited w.e.f. 17.07.2023 (formerly known as Lupin Atharv Ability Limited) India 100% -
Lupin Manufacturing Solutions Limited (w.e.f. 24.07.2023) India 100% -
Medisol S.A.S. (w.e.f. 01.09.2023) France 100% [4] -
Lymed S.A.S. (w.e.f. 01.09.2023) France 100% [4] -
YL Biologics Limited (under liquidation) Japan 45% [7] 45% [7]
----- End of picture text -----

1 97% Ownership interest held through Lupin Inc., USA.

2 Ownership interest held through Nanomi B.V., Netherlands.

3 Wholly owned subsidiary of Generic Health Pty Limited, Australia.

4 Ownership interest held through Lupin Atlantis Holdings SA, Switzerland.

5 Ownership interest held through Lupin Atlantis Holdings SA, Switzerland and Nanomi B.V., Netherlands.

6 Wholly owned subsidiaries of Lupin Inc., USA.

7 Joint Venture of Lupin Atlantis Holdings SA, Switzerland (with Yoshindo Inc., Japan having 55% share of interest).

8 Ownership interest held through Lupin Atlantis Holdings SA, Switzerland and Lupin Mexico S.A.de.C.V., Mexico.

9 Wholly owned subsidiary of Lupin Research Inc, USA.

38. Commitments

• a) Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advances, Tangible assets ₹ 3,657.1 million (31.03.2023 ₹ 2,789.4 million) and Intangible assets ₹ 113.6 million (31.03.2023 ₹ 71.5 million) and other purchase related commitments ₹ 1,014.5 million (31.03.2023 ₹ 750.8 million).

• b) Other commitments – Non-cancellable short-term leases is ₹ 13.1 million (31.03.2023 ₹ 3.4 million). Low value leases is ₹ 19.3 million (31.03.2023 ₹ 53.1 million).

Corporate Overview Statutory Reports Financial Statements 319

Notes

Forming part of the Consolidated Financial Statements

• c) There are no capital commitments at the jointly controlled entity as at 31.03.2024.

• d) Dividends proposed of ₹ 8/- (31.03.2023 ₹ 4/-) per equity share is subject to the approval of the shareholders of the Company at the Annual General Meeting, but not recognised as a liability in the financial statements is ₹ 3,646.0 million (31.03.2023 ₹ 1,820.1 million).

• e) There are product supply commitments pursuant to contracts with various customers under dossier agreements.

• f) There are product procurement commitments pursuant to contracts with suppliers under supply agreements.

• g) Financial and corporate guarantees issued by the Company on behalf of subsidiaries are disclosed in note 39.

39. Contingent Liabilities

==> picture [486 x 250] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
a) Income tax demands/matters on account of deductions/allowances in earlier years, pending
in appeals and potential tax demands in future years in respect of some uncertain tax issues
[₹ 355.7 million (31.03.2023 ₹ 353.9 million) consequent to department preferring appeals
against the orders of the Appellate Authorities passed in favour of the Company]. 1,774.7 1,770.2
Amount paid there against and included under “Non-Current Tax Assets (Net)” and “Current
Tax Liabilities (Net)” ₹ 1,361.3 million (31.03.2023 ₹ 1,360.3 million).
b) Customs duty, Excise duty, Service tax and Sales tax demands for input tax credit
disallowances and demand for additional Entry Tax arising from dispute on applicable rate 164.4 127.7
are in appeals and pending decisions. Amount paid there against and included under note 11
“Other Non-Current Assets” ₹ 22.3 million (31.03.2023 ₹ 23.9 million).
c) Claims against the Company not acknowledged as debts [excluding interest (amount
unascertained) in respect of a claim] for transfer charges of land, octroi duty, local body tax,
employee claims, power, trademarks, pricing and stamp duty.
Amount paid there against without admitting liability and included under note 11 “Other Non-
Current Assets” ₹ 154.6 million (31.03.2023 ₹ 154.6 million). 1,083.2 2,039.3
Demand raised by Maharashtra State Electricity Development Corporation Limited (MSEDCL)
challenging Group Captive Generating Plant (GCGP) status of power supplier’s plant at
Tarapur and Pune location.
d) party on behalf of subsidiaries for contractual obligations.Financial guarantee aggregating to ₹ 5,584.7 million (31.03.2023 ₹ 5,502.1 million) given to third - -
e) Lupin Pharmaceuticals Inc. (LPI) a step-down wholly owned subsidiary of the Company, is involved in government investigations
and litigation arising from the marketing and promotion of its pharmaceutical products in the United States.
----- End of picture text -----

• In January 2017, LPI and one of its employees were issued subpoenas by the Department of Justice (DOJ) requesting documents as part of DOJ’s investigation into possible antitrust violations within the generic drug industry. LPI has been cooperating in the ongoing investigation.

In April 2018, LPI was named in both class action and individual cases based on allegations of anticompetitive behavior related to certain products. LPI and one of its employees received a non-party subpoena from the state of Connecticut Attorney General (CAG) related to a civil antitrust case they filed in 2016, requesting documents and other information. In May 2019, 43 state attorneys general, led by the CAG, filed a second lawsuit against 19 companies (including Lupin Pharmaceuticals Inc.) and 15 individuals (including the Lupin employee) with allegations of violations of federal and state antitrust laws. The states claim to have been injured by paying supra-competitive prices for the products they purchased or reimbursed. These civil lawsuits were combined into the collection of similar cases referred to as In Re Generic Pharmaceuticals Antitrust Litigation, located in Philadelphia, Pennsylvania. As the case is still in the early stage, an estimate of the possible loss or range of loss, if any, cannot be made.

• f) From time to time, Lupin Limited and its subsidiaries are involved in various intellectual property claims and legal proceedings, which are considered normal to its business and the liability, if any, may fall on Lupin Limited. Some of these litigations have been resolved through settlement agreements with the plaintiffs.

• g) There are no contingent liabilities at the joint venture as at 31.03.2024 and 31.03.2023.

The Group does not envisage any likely reimbursements in respect of the above.

The Group is involved in various legal proceedings, including claims against the Group pertaining to Income tax, Excise, Customs, Sales Tax/VAT, product liability related claims, employment claims and other regulatory matters relating to conduct of its business. The Group has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liability where applicable, in the Consolidated Financial Statements. The Group carries product liability insurance policy with an amount it believes is sufficient for its needs. In respect of other claims, the Group believes that the probability of outflow is low to moderate considering the merits of the case and stages of the litigation, the ultimate disposition of these matters may not have material adverse effect on its Consolidated Financial Statements.

320 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

40. Pre-operative Expenses

Expenditure incurred prior to commencement of commercial production included “Capital Work-In-Progress” and “Intangible assets under development” represent direct attributable expenditure for setting up of plants. The same will be capitalised on completion of projects and commencement of commercial operations. The details of the pre-operative expenses are:

==> picture [486 x 136] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Opening balance 401.0 388.6
Incurred during the year:
Salaries, allowances and contribution to funds 170.5 94.4
Legal and Professional Charges 0.6 -
Travelling and Conveyance 40.4 7.6
Power and fuel 0.4 2.1
Others 41.6 16.8
Total incurred during the year 253.5 120.9
Less: Capitalised during the year 480.9 108.5
Closing balance 173.6 401.0
----- End of picture text -----

41. Revenue (Ind AS 115)

• a) The operations of the Group are limited to primarily two segment viz. Pharmaceuticals and Others. Revenue from contract with customers is from sale of pharmaceutical goods, rendering of research services and diagnostics services and healthcare service in digital space.

Payment terms with customers vary depending upon the contractual terms of each contract and does not have any significant financing component.

(i) Sale of pharmaceutical goods

Sale of goods are made at a point in time and revenue is recognised upon satisfaction of the performance obligations which is typically upon dispatch / delivery depending on the terms of the sale. The Group has a credit evaluation policy based on which the credit limits for the trade receivables are established.

Variable components such as discounts, chargebacks, rebates, refund liabilities etc. continues to be recognised as deductions from revenue in compliance with Ind AS 115.

• (ii) Service Income

Revenue is recognised either over the period of services on systematic basis or at a point in time when the Group satisfies performance obligations by transferring the promised services to its customers based on the nature of services.

(iii) Income from research services and sale of IPs

Income from research services including sale of technology/know-how (rights, licenses and other intangibles) is recognized in accordance with the terms of the contract with customers when the related performance obligation is completed.

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

b) Disaggregation of revenue:

==> picture [486 x 187] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Nature of segment 31.03.2024 31.03.2023
A. Service line:
- Sale of pharmaceutical goods 193,391.9 162,132.6
- Service Income 671.4 254.5
- Income from research services and sale of IPs 2,500.1 312.7
Total revenue from contracts with customers 196,563.4 162,699.8
B. Primary geographical market:
- India 69,647.4 64,349.1
- USA 71,047.3 51,583.6
- Others 55,868.7 46,767.1
Total revenue from contracts with customers 196,563.4 162,699.8
C. Timing of the revenue recognition:
- Goods / Services transferred at a point in time 194,079.2 162,699.6
- Services transferred over time 2,484.2 0.2
Total revenue from contracts with customers 196,563.4 162,699.8
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 321

Notes

Forming part of the Consolidated Financial Statements

• c) Reconciliation of revenue as per contract price and as recognised in Consolidated Statement of Profit and Loss:

Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Revenue as per contracted price	331,116.6 295,439.5
Adjusted for:
- Refund liabilities	6,445.8 5,682.7
- Discounts/Chargebacks/Rebates	117,266.7 118,042.4
- Others	10,840.7 9,014.6
Total revenue from contracts with customers	196,563.4 162,699.8

• d) Reconciliation of revenue recognised from Deferred Revenue:

d) Reconciliation of revenue recognised from Deferred Revenue:
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Balance in contract liability at the beginning of the year that was not recognized as revenue	2,079.3 1,572.5
Add: Increases due to cash received during the year excluding amounts recognized as revenue during the year	259.2 846.4
Less: Revenue recognized duringtheyear	265.5 339.6
Balance in contract liability at the end of theyear that is not recognized as revenue	2,073.0 2,079.3

42. Operating Segments

A. Basis for segmentation

The Company’s Chief Operating Decision Maker (CODM) reviews the internal management reports prepared based on aggregation of financial information for all entities in the Group (adjusted for intercompany eliminations, adjustments etc.) on a periodic basis, for the purpose of allocation of resources and evaluation of performance.

In view of increased business activities of diagnostics services and digital therapeutics platform, the operation of the Group are reported under two operating segments as per Ind AS 108 - Operating Segment are as follows:

Pharmaceuticals: This segment consist of Group producing, developing and marketing pharmaceutical products globally.

Others: This segment consist of business of providing diagnostics services and healthcare service in digital space.

B. Segment Revenue

Sales between segments are carried out at arm’s length and are eliminated on consolidation. The segment revenue is measured in the same way as in the consolidated statement of profit and loss.

the same way as in the consolidated statement of profit and loss.
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Revenue
a) Pharmaceuticals	199,452.0 166,168.0
b) Others	671.4 254.7
Total	200,123.4 166,422.7
Less: Inter segment revenue	15.2 6.1
Total revenue from operations	200,108.2 166,416.6

Major customer:

Revenue from the major customer based in USA represented ₹ 14,214.5 million (31.03.2023 ₹ 9,697.4 million) out of the Group’s total revenues attributed to the Pharmaceuticals segment.

The geographic information analyses the Group’s revenues by the Company’s country of domicile and other countries. Segment revenue has been based on the selling location in relation to sales to customers. The amount of its revenue from external customers broken down by location of the customers is shown below :

Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
India	73,167.3 66,506.7
USA	71,047.3 51,583.6
Others	55,893.6 48,326.3
Total	200,108.2 166,416.6

322 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

C. Segment Results

The segment results are measured in the same way as in the Consolidated Statement of Profit and Loss:

Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Results
a) Pharmaceuticals	25,476.1 8,156.6
b) Others	(1,253.4) (991.7)
Totalprofit before tax	24,222.7 7,164.9

D. Segment Assets

Segment assets are measured in the same way as in the Consolidated Financial Statements :

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Assets
a) Pharmaceuticals	240,436.1 229,093.6
b) Others	2,079.0 1,993.4
Total	242,515.1 231,087.0
Less: Inter segment assets	2,543.3 1,527.7
Total assets	239,971.8 229,559.3

The total of non-current assets other than financial instruments and deferred tax assets, broken down by the location of assets is shown below:

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
India	55,078.0 56,102.9
USA	22,392.0 25,240.9
Others	24,637.9 21,668.5
Total	102,107.9 103,012.3

E. Segment Liabilities

Segment liabilities are measured in the same way as in the Consolidated Financial Statements:

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Liabilities
a) Pharmaceuticals	96,116.0 103,325.9
b) Others	2,526.8 2,487.1
Total	98,642.8 105,813.0
Less: Inter segment Liabilities	2,405.5 1,681.9
Total Liabilities	96,237.3 104,131.1

43. Basic and Diluted Earnings per Share is calculated as under

==> picture [486 x 114] intentionally omitted <==

----- Start of picture text -----

Year ended Year ended
Particulars
31.03.2024 31.03.2023
Profit/(Loss) attributable to Equity Shareholders (₹ in million) 19,144.8 4,300.8
Weighted average number of Equity Shares:
- Basic 455,240,464 454,692,962
Add : Dilutive effect of employees stock options (ESOPs) - converted during the year and ESOPs
1,985,533 2,254,024
outstanding as at the year end
- Diluted 457,225,997 456,946,986
Earnings per Share (in ₹)
- Basic 42.05 9.46
- Diluted 41.87 9.41
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 323

Notes

Forming part of the Consolidated Financial Statements

44. Leases

The Group leases Land, Building, Plant & Equipment, Furniture & Fixtures, Vehicles and Office Equipment. The leases typically run for the period between 12 months to 60 months with an option to renew the lease after that date.

Information about leases for which the Group is lessee is presented below :

i) Lease liabilities

Particulars	(₹ in million) Land Buildings Plant & Equipment Furniture & Fixtures Vehicles Office Equipment Total
Balance as at 01.04.2023	114.4 2,331.0 18.6 105.1 388.7 16.9 2,974.7
Addition	- 486.7 24.7 - 321.0 22.2 854.6
Accreditation of interest (Refer note 35)	9.0 126.7 2.0 4.5 36.1 1.9 180.2
Payments	(7.6) (971.4) (19.1) (98.8) (228.7) (13.8) (1,339.4)
Adjustments for Disposals	- (112.3) - - (24.3) - (136.6)
Translation Adjustments	- 8.6 (0.1) - (24.0) 0.6 (14.9)
Balance as at 31.03.2024	115.8 1,869.3 26.1 10.8 468.8 27.8 2,518.6
Current	4.0 666.7 17.2 8.7 256.8 12.4 965.8
Non-current	111.8 1,202.6 8.9 2.1 212.0 15.4 1,552.8

Translation Adjustments Balance as at 31.03.2024 Current Non-current	- 8.6 (0.1) - (24.0) 0.6 (14.9) 115.8 1,869.3 26.1 10.8 468.8 27.8 2,518.6 4.0 666.7 17.2 8.7 256.8 12.4 965.8 111.8 1,202.6 8.9 2.1 212.0 15.4 1,552.8
Particulars	(₹ in million) Land Buildings Plant & Equipment Furniture & Fixtures Vehicles Office Equipment Total
Balance as at 01.04.2022	112.9 2,559.3 4.9 191.6 264.7 8.7 3,142.1
Addition	- 505.6 22.0 - 291.5 7.7 826.8
Accreditation of interest (Refer note 35)	8.9 159.5 0.8 12.3 23.5 0.7 205.7
Payments	(7.4) (918.9) (9.1) (98.8) (191.0) (8.7) (1,233.9)
Adjustments for Disposals	- (61.9) - - (27.1) (0.8) (89.8)
Translation Adjustments	- 87.4 - - 27.1 9.3 123.8
Balance as at 31.03.2023	114.4 2,331.0 18.6 105.1 388.7 16.9 2,974.7
Current	4.7 805.4 7.1 94.3 193.8 5.5 1,110.8
Non-current	109.7 1,525.6 11.5 10.8 194.9 11.4 1,863.9

The maturity analysis of the lease liability is included in Note no. iii - Financial risk management objectives and policies under maturities of financial liabilities.

ii) Amounts recognised in Consolidated Statement of Profit and Loss

ii) Amounts recognised in Consolidated Statement of Profit and Loss
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Depreciation expense of right-of-use assets (Refer note 5)	1,176.3 1,064.1
Interest expense on lease liabilities (Refer note 35)	180.2 205.7
Expense relating to short-term leases (Refer note 36)	32.1 12.5
Expense relatingto low value assets (Refer note 36)	152.9 234.2
Total	1,541.5 1,516.5

iii) Financial risk management

Maturities of financial liabilities

The table below analyze the Group’s financial liabilities into relevant maturity analysis based on their contractual maturities for all financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

				(₹ in million)
Contractual maturities of financial liabilities	Less than 1 Year	1 to 5 Years	More than 5 Years	Total
As at 31.03.2024
Lease liabilities As at 31.03.2023 Lease liabilities	1,075.2 1,208.4	1,580.8 1,708.1	1,572.5 145.5	4,228.5 3,062.0

iv) Commitments and contingencies

The Group has not entered into lease contracts that have not yet commenced as at 31.03.2024.

324 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

45. Share-based Payment Arrangements

(A) The Company

(i) Employee stock options – equity settled

The Company implemented “Lupin Employees Stock Option Plan 2003” (ESOP 2003), “Lupin Employees Stock Option Plan 2005” (ESOP 2005), “Lupin Subsidiary Companies Employees Stock Option Plan 2005” (SESOP 2005), “Lupin Employees Stock Option Plan 2011” (ESOP 2011), “Lupin Subsidiary Companies Employees Stock Option Plan 2011” (SESOP 2011), “Lupin Employees Stock Option Plan 2014” (ESOP 2014) and “Lupin Subsidiary Companies Employees Stock Option Plan 2014” (SESOP 2014) in earlier years, as approved by the Shareholders of the Company and the Nomination and Remuneration Committee of the Board of Directors (the Committee).

The Committee determines which eligible employees will receive options, the number of options to be granted, the vesting period and the exercise period. The options are granted at an exercise price, which is in accordance with the relevant SEBI guidelines in force, at the time of such grants. Each option entitles the holder to exercise the right to apply for and seek allotment of one equity share of ₹ 2 each. The options issued under the above schemes vest in a phased manner after completion of the minimum period of one year upto four years with an exercise period of ten years from the respective grant dates.

Category A - Fair Market Value Options (comprising of options granted under ESOP 2003, ESOP 2005, ESOP 2011, SESOP 2011 and SESOP 2014)

				Year ended 31.03.2024
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	1,175,495	556.1-1,521.7	1,228.7	0.9
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	- 341,932 96,618 736,945 736,945	- 556.1-1,521.7 556.1-556.1 873.5-1,521.7 864.8-1,521.7	- 1,025.8 1,024.0 1,349.6 1,349.6	- NA NA 1.5 1.5
				Year ended 31.03.2023
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	1,389,971	556.1-1,521.7	1,192.8	1.8
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	- 181,294 33,182 1,175,495 1,175,495	- 556.1-1,521.7 556.1-556.1 873.5-1,521.7 864.8-1,521.7	- 1,066.7 556.1 1,230.1 1,220.9	- NA NA 1.9 1.9

The weighted average grant date fair value of the options granted under Category A during the year ended 31.03.2024 and 31.03.2023 was ₹ nil and ₹ nil per option, respectively.

Category B - Par Value Options (comprising of options granted under ESOP 2011, SESOP 2011, ESOP 2014 and SESOP 2014)

				Year ended 31.03.2024
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	2,036,836	2.0	2.0	7.0
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	283,417 156,189 550,955 1,613,109 528,623	2.0 2.0 2.0 2.0 2.0	2.0 2.0 2.0 2.0 2.0	9.7 NA NA 7.7 5.9

Corporate Overview Statutory Reports Financial Statements 325

Notes

Forming part of the Consolidated Financial Statements

				Year ended 31.03.2023
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	2,014,478	2.0	2.0	7.1
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	677,264 181,767 473,139 2,036,836 567,520	2.0 2.0 2.0 2.0 2.0	2.0 2.0 2.0 2.0 2.0	9.7 NA NA 8.1 6.3

The weighted average grant date fair value of the options granted under Category B during the year 31.03.2024 and 31.03.2023 was ₹ 1,173.1 and ₹ 722.6 per option, respectively.

Category C - Discounted Fair Market Value Options (comprising of options granted under ESOP 2011)

				Year ended 31.03.2024
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	50,000	891.5-891.5	891.5	1.6
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	- - 50,000 - -	- - - 891.5-891.5 891.5-891.5	- - 891.5 - -	- NA NA - -
				Year ended 31.03.2023
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	50,000	891.5-891.5	891.5	2.6
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	- - - 50,000 50,000	- - - 891.5-891.5 891.5-891.5	- - - 891.5 891.5	- NA NA 2.6 2.6

The weighted average grant date fair value of options granted under Category C during the year ended 31.03.2024 and 31.03.2023 was ₹ nil and ₹ nil per option, respectively.

The weighted average share price during the year ended 31.03.2024 and 31.03.2023 was ₹ 1,140.5 and ₹ 692.7 per share, respectively.

Valuation of stock options

The fair value of stock options granted during the period has been measured using the Black–Scholes option pricing model at the date of the grant. The Black-Scholes option pricing model includes assumptions regarding dividend yields, expected volatility, expected terms and risk free interest rates. The key inputs and assumptions used are as follows:

Share price: The closing price on NSE as on the date of grant has been considered for valuing the options granted.

Exercise Price: Exercise Price is the market price or face value or such other price as determined by the Nomination and Remuneration Committee.

Expected Volatility: The historical volatility of the stock till the date of grant has been considered to calculate the fair value of the options.

Expected Option Life: Expected Life of option is the period for which the Company expects the options to be live. The minimum life of a stock option is the minimum period before which the options cannot be exercised and the maximum life is the period after which the options cannot be exercised.

Expected dividends: Expected dividend yield has been calculated as an average of dividend yields for four years preceding the date of the grant.

Risk free interest rate: The risk free interest rate on the date of grant considered for the calculation is the interest rate applicable for a maturity equal to the expected life of the options based on the zero coupon yield curve for Government Securities.

These assumptions reflect management’s best estimates, but these assumptions involve inherent market uncertainties based on market conditions generally outside of the Company’s control. As a result, if other assumptions had been used in the current period, stock-based compensation expense could have been materially impacted. Further, if management uses different assumptions in future periods,

326 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

stock based compensation expense could be materially impacted in future years. The estimated fair value of stock options is charged to income on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards.

The weighted average inputs used in computing the fair value of options granted were as follows:

Weighted average information - Year ended 31.03.2024

Category	Grant date	Exercise price (₹)	Risk free rate (%)	Expected life (years)	Expected Volatility (%)	Dividend yield (%)	Weighted average share price (₹)	Weighted Option Fair Value (₹)
B	04.05.2023	2.0	6.6%	2.6	29.9%	0.6%	709.9	697.8
B B B B B	28.07.2023 28.07.2023 12.12.2023 12.12.2023 12.12.2023	2.0 2.0 2.0 2.0 2.0	6.8% 6.7% 6.9% 6.9% 6.9%	6.3 2.6 6.3 6.3 2.6	30.8% 29.5% 30.4% 30.4% 28.1%	0.6% 0.6% 0.6% 0.6% 0.6%	974.0 974.0 1,240.2 1,240.2 1,240.2	938.1 957.9 1,193.3 1,193.3 1,219.5
Category	Weighted Average Option Fair Value					Weighted Average Share Price
B			1,173.1				1,204.0

Weighted average information - Year ended 31.03.2023

Category	Grant date	Exercise price (₹)	Risk free rate (%)	Expected life (years)	Expected Volatility (%)	Dividend yield (%)	Weighted average share price (₹)	Weighted Option Fair Value (₹)
B	25.04.2022	2.0	6.6%	6.3	31.3%	0.6%	725.4	696.1
B B B B B B B B B B	19.07.2022 19.07.2022 21.11.2022 21.11.2022 21.11.2022 12.12.2022 12.12.2022 12.12.2022 30.01.2023 20.02.2023	2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0	7.0% 6.3% 7.0% 7.0% 7.0% 7.0% 7.0% 6.6% 6.8% 6.8%	6.3 2.6 6.3 6.3 6.3 6.3 6.3 2.6 2.6 2.6	31.4% 32.2% 31.2% 31.2% 31.2% 31.2% 31.2% 31.4% 31.2% 31.5%	0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6%	643.8 643.8 720.9 720.9 720.9 752.0 752.0 752.0 734.7 667.1	617.8 631.8 694.2 694.2 694.2 724.2 724.2 739.2 722.2 655.6
Category	Weighted Average Option Fair Value					Weighted Average Share Price
B			722.6				740.0

(ii) Employee stock options – Cash settled

The cost of cash-settled transactions is measured initially at fair value at the grant date using a Binomial Option Pricing Model. This fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The liability is re-measured to fair value at each reporting date up to, and including the settlement date, with changes in fair value recognised in employee benefits expense.

Effect of cash settled share based payment transactions on the Consolidated Balance Sheet

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Other non-current financial liabilities	322.8 78.2
Other current financial liabilities	342.8 76.6
Total carrying amount of liabilities	665.6 154.8

Effect of share based payment transactions on the Consolidated Statement of Profit and Loss

Effect of share based payment transactions on the Consolidated Statement of Profit and Loss
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Equity settled share based payments	374.6 401.5
Cash settled share basedpayments	759.5 176.1
Total expense on share basedpayments	1,134.1 577.6

Corporate Overview Statutory Reports Financial Statements 327

Notes

Forming part of the Consolidated Financial Statements

(B) Lupin Diagnostics Limited

(i) Employee stock options – Equity settled

Lupin Diagnostics Limited implemented “Lupin Diagnostics Limited Employees Stock Option Plan 2022” (LDL ESOP 2022) during the year as approved by the Board of Directors (the Committee) of Lupin Diagnostics Limited.

The Committee determines which eligible employees will receive options, the number of options to be granted, the vesting period and the exercise period. The options are granted at an exercise price of ₹ 10 each, which is at par with face value of share. Each option entitles the holder to exercise the right to apply for and seek allotment of one equity share of ₹ 10 each. The options issued under the above schemes vest in a phased manner after completion of the minimum period of two years upto five years with an exercise period of ten years from the respective grant dates.

Par Value Options (comprising of options granted under LDL ESOP 2022)

				Year ended 31.03.2024
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	98,128	10.0	10.0	3.3
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	7,745 - - 105,873 -	10.0 - - 10.0 -	10.0 - - 10.0 -	5.0 - - 2.0 -
				Year ended 31.03.2023
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	-	-	-	-
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	98,128 - - 98,128 -	10.0 - - 10.0 -	10.0 - - 10.0 -	9.0 - - 3.3 -

The weighted average grant date fair value of the options granted during the year ended 31.03.2024 and 31.03.2023 was ₹ 33.7 and ₹ 8.7 per option, respectively.

Valuation of stock options

The fair value of stock options granted during the period has been measured using the Black–Scholes option pricing model at the date of the grant. The Black-Scholes and Merton option pricing model includes assumptions regarding dividend yields, expected volatility, expected terms and risk free interest rates. The key inputs and assumptions used are as follows:

Share price: The fair value of equity shares of Lupin Diagnostics Limited is considered at ₹ 14.2 per share for valuation of ESOP. The fair value of equity shares is derived considering Discounted Cash Flow (DCF) Method under the income approach of valuation considering the going concern projections for the period FY 2023 to FY 2027.

Exercise Price: The Exercise Price is the price payable by the employee for exercising the ESOP granted in pursuance of the terms of the Plan. As per the ESOP terms provided by Lupin Diagnostics Limited, the exercise price is ₹ 10.0 per share for all the grants.

Expected Volatility: Expected Volatility is calculated on the annualized standard deviation for the historical period corresponding to the expected life of the option.

Expected Option Life: Expected Life of option is the period for which Lupin Diagnostics Limited expects the options to be live. The minimum life of a stock option is the minimum period before which the options cannot be exercised and the maximum life is the period after which the options cannot be exercised.

Expected dividends: Expected dividend yield has been considered as zero.

Risk free interest rate: The risk free interest rate on the date of grant considered for the calculation is the interest rate applicable for a maturity equal to the expected life of the options based on the zero coupon yield curve for Government Securities.

These assumptions reflect management’s best estimates, but these assumptions involve inherent market uncertainties based on market conditions generally outside of Lupin Diagnostics Limited’s control. As a result, if other assumptions had been used in the current period, stock-based compensation expense could have been materially impacted. Further, if management uses different assumptions in future periods, stock based compensation expense could be materially impacted in future years. The estimated fair value of stock options is charged to income on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards.

328 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

The weighted average inputs used in computing the fair value of options granted were as follows:

Weighted average information - Year ended 31.03.2024

Grant date 05.02.2024	Exercise price (₹) 10.0	Risk free rate (%) 6.8%	Expected life (years) 6	Expected Volatility (%) 35.9%	Dividend yield (%) NA	Weighted average share price (₹) 40.2	Weighted Option Fair Value (₹) 33.7
	Weighted Average Option Fair Value					Weighted Average Share Price
		33.7				40.2

Weighted average information - Year ended 31.03.2023

Grant date 01.08.2022	Exercise price (₹) 10.0	Risk free rate (%) 6.9%	Expected life (years) 6	Expected Volatility (%) 35.2%	Dividend yield (%) NA	Weighted average share price (₹) 14.2	Weighted Option Fair Value (₹) 8.7
	Weighted Average Option Fair Value					Weighted Average Share Price
		8.7				14.2

(ii) Employee stock options – Cash settled

The cost of cash-settled transactions is measured initially at fair value at the grant date using a Binomial Option Pricing Model. This fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The liability is re-measured to fair value at each reporting date up to, and including the settlement date, with changes in fair value recognised in employee benefits expense.

Employee benefit expense includes cash settled employee stock options issued to certain employees of Lupin Diagnostics Limited by the Lupin Limited amounting to ₹ 1.8 million (31.03.2023 ₹ 0.6 million).

Effect of cash settled share based payment transactions on the Consolidated Balance Sheet

the Lupin Limited amounting to ₹ 1.8 million (31.03.2023 ₹ 0.6 million). Effect of cash settled share based payment transactions on the Consolidated Balance Sheet
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Other non-current financial liabilities	0.4 0.1
Other current financial liabilities	0.6 -
Total carrying amount of liabilities	1.0 0.1

Effect of share based payment transactions on the Consolidated Statement of Profit and Loss

Effect of share based payment transactions on the Consolidated Statement of Profit and Loss
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Equity settled share based payments	0.7 0.4
Cash settled share basedpayments	1.8 0.6
Total expense on share basedpayments	2.5 1.0

(C) Lupin Digital Health Limited

(i) Employee stock options – equity settled

Lupin Digital Health Limited implemented “Lupin Digital Health Limited Employees Stock Option Plan 2022” (LDHL ESOP 2022), as approved by the Board of Directors (the Committee) of the Lupin Digital Health Limited.

The Committee determines which eligible employees will receive options, the number of options to be granted, the vesting period and the exercise period. The options are granted at an exercise price, which is in accordance with the relevant SEBI guidelines in force, at the time of such grants. Each option entitles the holder to exercise the right to apply for and seek allotment of one equity share of ₹ 10 each. The options issued under the above schemes vest in a phased manner after completion of the minimum period of two years upto five years with an exercise period of ten years from the respective grant dates.

Par Value Options (comprising of options granted under LDHL ESOP 2022)

				Year ended 31.03.2024
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	1,090,160	10.0	10.0	2.9
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	- 140,050 - 950,110 -	- 10.0 - 10.0 -	- 10.0 - 10.0 -	- - - 1.9 -

Corporate Overview Statutory Reports Financial Statements 329

Notes

Forming part of the Consolidated Financial Statements

				Year ended 31.03.2023
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	-	-	-	-
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	1,090,160 - - 1,090,160 -	10.0 - - 10.0 -	10.0 - - 10.0 -	4.0 - - 2.9 -

The weighted average grant date fair value of the options granted during the year ended 31.03.2024 and 31.03.2023 is ₹ nil and ₹ 27.35 per option, respectively.

Valuation of stock options

The fair value of stock options granted during the period has been measured using the Black–Scholes & Merton option pricing model at the date of the grant. The Black-Scholes option pricing model includes assumptions regarding dividend yields, expected volatility, expected terms and risk free interest rates. The key inputs and assumptions used are as follows:

Share price: The fair value of equity shares on the date of grant has been considered for valuing the options granted.

Exercise Price: The Exercise Price is the price payable by the employee for exercising the ESOP granted in pursuance of the terms of the Plan. As per the ESOP terms provided by Lupin Digital Health Limited, the exercise price is ₹ 10.0 per share for all the grants.

Expected Volatility: Expected Volatility is calculated on the annualized standard deviation for the historical period corresponding to the expected life of the option.

Expected Option Life: Expected Life of option is the period for which Lupin Digital Health Limited expects the options to be live. The minimum life of a stock option is the minimum period before which the options cannot be exercised and the maximum life is the period after which the options cannot be exercised.

Expected dividends: Expected dividend yield has been calculated as an average of dividend yields for two years preceding the date of the grant.

Risk free interest rate: The risk free interest rate on the date of grant considered for the calculation is the interest rate applicable for a maturity equal to the expected life of the options based on the zero coupon yield curve for Government Securities.

These assumptions reflect management’s best estimates, but these assumptions involve inherent market uncertainties based on market conditions generally outside of Lupin Digital Health Limited’s control. As a result, if other assumptions had been used in the current period, stock-based compensation expense could have been materially impacted. Further, if management uses different assumptions in future periods, stock based compensation expense could be materially impacted in future years. The estimated fair value of stock options is charged to income on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards.

The weighted average inputs used in computing the fair value of options granted were as follows:

Weighted average information - Year ended 31.03.2024

Grant date	Exercise price (₹)	Risk free rate (%)	Expected life (years)	Expected Volatility (%)	Dividend yield (%)	Weighted average share price (₹)	Weighted Option Fair Value (₹)
14.07.2022	10.0	7.0%	6.6	18.5%	0%	33.0	26.7
01.08.2022 23.08.2022 04.11.2022 25.11.2022 06.03.2023	10.0 10.0 10.0 10.0 10.0	7.0% 7.0% 7.0% 7.0% 7.1%	6.6 6.7 6.7 6.7 6.8	18.5% 18.5% 18.5% 18.5% 18.1%	0% 0% 0% 0% 0%	33.0 33.0 33.0 33.0 40.0	26.7 26.7 26.7 26.7 33.8

Weighted average information - Year ended 31.03.2023

Grant date	Exercise price (₹)	Risk free rate (%)	Expected life (years)	Expected Volatility (%)	Dividend yield (%)	Weighted average share price (₹)	Weighted Option Fair Value (₹)
14.07.2022	10.0	7.1%	6.6	18.5%	0%	33.0	26.7
01.08.2022 23.08.2022 04.11.2022 25.11.2022 06.03.2023	10.0 10.0 10.0 10.0 10.0	7.1% 7.1% 7.1% 7.1% 7.1%	6.6 6.7 6.7 6.7 6.8	18.5% 18.5% 18.5% 18.5% 18.1%	0% 0% 0% 0% 0%	33.0 33.0 33.0 33.0 40.0	26.7 26.7 26.7 26.7 33.8

330 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

(ii) Employee stock options – Cash settled

The cost of cash-settled transactions is measured initially at fair value at the grant date using a Binomial Option Pricing Model. This fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The liability is re-measured to fair value at each reporting date up to, and including the settlement date, with changes in fair value recognised in employee benefits expense.

Employee benefit expense includes cash settled employee stock options issued to certain employees of Lupin Digital Health Limited

by Lupin Limited amounting to ₹ 0.3 million (31.03.2023 ₹ 0.1 million).

Effect of cash settled share based payment transactions on the Consolidated Balance Sheet

by Lupin Limited amounting to ₹ 0.3 million (31.03.2023 ₹ 0.1 million). Effect of cash settled share based payment transactions on the Consolidated Balance Sheet
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Other non-current financial liabilities	0.2 0.1
Other current financial liabilities	0.2 0.1
Total carrying amount of liabilities	0.4 0.2

Effect of share based payment transactions on the Consolidated Statement of Profit and Loss

Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Equity settled share based payments	7.5 5.6
Cash settled share basedpayments	0.3 0.1
Total expense on share basedpayments	7.8 5.7

46. Post-Employment Benefits

(i) Defined Contribution Plans:

The Group makes contributions towards provident fund, superannuation fund and other retirement benefits to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Group is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.

The Group recognised ₹ 1,339.4 million (31.03.2023 ₹ 1,016.8 million) for superannuation contribution and other retirement benefit contribution in the Consolidated Statement of Profit and Loss.

The contributions payable to these plans by the Group are at rates specified in the rules of the schemes.

The Group recognised ₹ 309.8 million (31.03.2023 ₹ 282.1 million) for provident and pension fund contributions in the Consolidated Statement of Profit and Loss.

(ii) Defined Benefit Plan:

a) The Company

• A) The Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC a funded defined benefit plan for qualifying employees. The scheme provides for payment as under:

• i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of the Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

• ii) On death in service:

As per the provisions of the Payment of Gratuity Act, 1972 without any vesting period.

In addition to the above mentioned scheme, the Company also pays additional gratuity as ex-gratia and the said amount is provided as non-funded liability based on actuarial valuation.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31.03.2024. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect the following table sets out the status of the gratuity plan and the amounts recognised in the Group’s financial statements as at the Balance Sheet date.

Corporate Overview Statutory Reports Financial Statements 331

Notes

Forming part of the Consolidated Financial Statements

==> picture [486 x 626] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Gratuity (Funded) Gratuity (Unfunded)
No. Particulars As at As at As at As at
31.03.2024 31.03.2023 31.03.2024 31.03.2023
Change in present value of obligation ('PVO') - defined benefit
I)
obligation:
PVO at the beginning of the year 2,526.7 2,522.3 1,635.0 1,595.5
Current service cost 245.0 233.8 136.2 129.4
Past service cost - - - -
Interest cost 187.4 179.0 121.2 113.2
Actuarial loss / (gain)
- Due to demographic assumption - - - -
- Due to finance assumption 99.7 (17.5) 71.2 5.5
- Due to experience adjustment 44.4 33.7 15.0 (48.0)
Benefits paid (261.3) (424.6) (103.9) (160.6)
- -
Transfer In/(Out) (85.0) (30.2)
PVO at the end of the year 2,756.9 2,526.7 1,844.5 1,635.0
II) Change in fair value of plan assets:
Fair value of plan assets at the beginning of the year 1,816.7 1,824.3 - -
Expected return on plan assets 1.6 5.8 - -
Interest Income 134.7 129.4 - -
Contributions by the employer 285.9 281.8 - -
- -
Benefits paid (261.3) (424.6)
Fair value of plan assets at the end of the year 1,977.6 1,816.7 - -
III) Reconciliation of PVO and fair value of plan assets:
PVO at the end of the year 2,756.9 2,526.7 1,844.5 1,635.0
Fair Value of plan assets at the end of the year 1,977.6 1,816.7 - -
Funded status (779.5) (710.0) (1,844.5) (1,635.0)
- - - -
Unrecognised actuarial loss/(gain)
Net liability recognised in the Consolidated Balance Sheet (779.5) (710.0) (1,844.5) (1,635.0)
IV) Expense recognised in the Consolidated Statement of Profit and Loss:
Current service cost 245.0 233.8 136.2 129.4
Past service cost - - - -
Interest cost 52.7 49.6 121.2 113.2
Total expense recognised in the Consolidated Statement of Profit and 297.7 283.4 257.4 242.6
Loss
V) Other Comprehensive Income:
Actuarial loss / (gain)
- Due to demographic assumption - - - -
- Due to finance assumption 99.7 (17.5) 71.2 5.5
- Due to experience adjustment 44.4 33.7 15.0 (48.0)
- -
Return on plan assets excluding net interest (1.4) (5.8)
Total amount recognised in OCI 142.7 10.4 86.2 (42.5)
VI) Category of assets as at the end of the year:
Insurer managed Funds (100%)
(Fund is managed by LIC as per IRDA guidelines category-wise 1,977.4 1,816.7 - -
composition of the plan assets is not available)
VII) Actual return on the plan assets 136.3 135.2 - -
VIII) Assumptions used in accounting for the gratuity plan:
Mortality (%) Rates stipulated in Indian Assured Lives Mortality 2012-14 from 01.04.2019 onwards
Discount rate (%) 7.2 7.4 7.2 7.4
9.0 for first 9.0 for first 9.0 for first 9.0 for first
Salary escalation rate (%) three years and 6.0 three years and 6.0 three years and 6.0 three years and 6.0
thereafter thereafter thereafter thereafter
Average Remaining Service (years) 11.3 11.4 11.3 11.4
----- End of picture text -----*

332 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

Sr. No. Particulars	Gratuity (Funded)	(₹ in million) Gratuity (Unfunded)
	As at 31.03.2024 As at 31.03.2023	As at 31.03.2024 As at 31.03.2023
Employee Attrition Rate (%)
upto 5 years	15 15	15 15
above 5 years	5 5	5 5
IX) Estimate of amount of contribution in immediate nextyear	410.7 370.6	NA NA

*₹ 2.0 million (31.03.2023 ₹ 1.9 million) capitalised as pre-operative expenses out of above amount.

X) Expected future benefit payments

X) Expected future benefit payments
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
1 year	704.1 638.8
2 to 5 years	1,591.8 1,454.5
6 to 10 years	1,873.6 1,635.9
More than 10years	5,463.0 5,221.8

The estimates of salary escalation considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:

Gratuity	(₹ in million) 31.03.2024 31.03.2023
	Increase Decrease Increase Decrease
Discount Rate (1% movement)	(350.8) 404.7 (318.0) 366.9
Future salary growth (1% movement)	402.1 (354.8) 365.3 (322.2)
Attrition rate (- / + 50% of attrition rates)	(51.1) 59.0 (35.8) 39.0

Risk Exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are defined below:

• Interest Rate risk The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

• Investment risk The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

• Salary risk The present value of the defined benefit plan liability is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

• B) The provident fund plan of the Company, except at one plant, is operated by “Lupin Limited Employees Provident Fund Trust” (“Trust”), a separate legal entity. Eligible employees receive benefits from the said Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plans equal to a specified percentage of the covered employee’s salary.

The minimum interest rate payable by the Trust to the beneficiaries every year is being notified by the Government of India. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate. The Board of Trustees administer the contributions made by the Company to the schemes and also defines the investment strategy to act in the best interest of the plan participants.

The Company has an obligation to service the shortfall on account of interest generated by the fund and on maturity of fund investments and hence the same has been classified as Defined Benefit Plan in accordance with Ind AS 19 “Employee Benefits”. As per the Guidance Note from the Actuarial Society of India, the Company has obtained the actuarial valuation of interest rate obligation in respect of Provident Fund as at 31.03.2024 and based on the same, there is no shortfall towards interest rate obligation.

Corporate Overview Statutory Reports Financial Statements 333

Notes

Forming part of the Consolidated Financial Statements

Based on the actuarial valuation obtained, the following is the details of fund and plan assets.

==> picture [486 x 594] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. As at As at
Particulars
No. 31.03.2024 31.03.2023
I) Change in present value of obligation ('PVO') - defined benefit obligation:
Liability at the beginning of the year 12,310.8 11,641.3
Interest cost 904.7 816.9
Current service cost 763.0 677.4
Employee's contribution 1,125.7 1,045.7
Liability Transferred in (342.1) (398.2)
Benefits paid (1,716.1) (1,595.5)
Actuarial loss/(gain)
- Due to financial assumptions 105.9 42.2
- Due to experience adjustment 33.2 81.0
Liability at the end of the year 13,185.1 12,310.8
II) Change in fair value of plan assets:
Fair value of plan assets at the beginning of the year 12,031.1 11,466.4
Investment income 881.6 803.2
Employer’s contributions 723.7 648.4
Employee’s contribution 1,125.7 1,045.5
Transfers in (369.8) (406.7)
Benefits paid (1,716.1) (1,595.4)
Return on plan assets, excluding amount recognised in net interest expense 232.9 69.7
Fair value of plan assets at the end of the year 12,909.1 12,031.1
III) Reconciliation of PVO and fair value of plan assets:
Present Value of defined benefit obligations 13,185.1 12,310.8
Fair Value of plan assets 12,909.1 12,031.1
Net Liability /(Asset) 276.0 279.7
IV) Expense recognised in the Statement of Profit and Loss:
Current service cost 763.0 677.4
Interest cost 904.7 816.9
Expected return on plan assets (881.6) (803.2)
(Income) / Expense recognised in the Statement of Profit and Loss 786.1 691.1
V) Other Comprehensive Income:
Actuarial loss/(gain)
- Due to finance assumption 105.9 42.2
- Due to experience adjustment 33.2 81.0
Return on plan assets excluding net interest (232.9) (69.7)
Total amount recognised in OCI (93.8) 53.5
VI) Major categories of Plan Assets (As per percentage of Total Plan Assets):
Government of India securities / State Government securities 56.4% 59.0%
High quality corporate bonds 0.7% 0.6%
Equity shares of listed companies 1.0% 1.3%
Debt Mutual Fund 38.0% 34.8%
Equity Mutual Fund 2.1% 2.5%
Special Deposit Scheme 1.6% 1.8%
Bank balance 0.2% 0.1%
Total 100% 100%
VII) Assumptions used in accounting for the provident fund plan:
Discount rate (%) 7.2 7.4
Average remaining tenure of investment portfolio (years) 7.6 7.7
Guaranteed rate of return (%) 8.3 8.2
Attrition rate - upto 5 years 15.0% 15.0%
above 5 years 5.0% 5.0%
----- End of picture text -----

334 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

b) Multicare Pharmaceuticals Philippines Inc., Philippines

The subsidiary at Philippines makes annual contributions to a private bank to fund defined benefit plan for qualifying employees. The Retirement Plan is a non-contributory and of the defined benefit type which provides a retirement benefit equal to 200% of Plan Salary for every year of Credited Service.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for retirement benefit were carried out as at 31.03.2024. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method.

The following table sets out the status of the retirement plan and the amounts recognised in the Group’s financial statements as at balance sheet date:

==> picture [487 x 533] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Lump sum Retirement Benefits (funded)
Particulars
No. As at 31.03.2024 As at 31.03.2023
I) Change in present value of obligation ('PVO') - defined benefit obligation:
PVO at the beginning of the year 181.2 147.7
Current service cost 23.1 19.6
Past service cost - -
Interest cost 11.6 8.3
Actuarial loss / (gain)
- Due to demographic assumption 4.6 23.6
- Due to finance assumption 6.4 (20.2)
- Due to experience adjustment (13.0) (2.4)
Benefits paid (3.5) (2.1)
Foreign exchange translation difference (5.1) 6.7
PVO at the end of the year 205.3 181.2
II) Change in fair value of plan assets:
Fair value of plan assets at the beginning of the year 79.3 35.9
Return on plan assets excluding net interest 0.7 (2.7)
Interest Income 6.7 3.2
Contributions 45.8 44.9
Benefits paid (3.5) (2.1)
Foreign exchange translation difference 1.2 0.1
Fair value of plan assets at the end of the year 130.2 79.3
III) Reconciliation of PVO and fair value of plan assets:
PVO at the end of the year 205.3 181.2
Fair Value of plan assets at the end of the year 130.2 79.3
Funded status (75.1) (101.9)
- -
Unrecognised actuarial loss/(gain)
Net liability recognised in the Consolidated Balance Sheet (75.1) (101.9)
IV) Expense recognised in the Consolidated Statement of Profit and Loss:
Current service cost 23.1 19.6
Past service cost - -
Net Interest 4.9 5.1
Return on Plan Assets excluding interest income - -
Total expense recognised in the Consolidated Statement of Profit and Loss 28.0 24.7
V) Other Comprehensive Income:
Actuarial loss / (gain)
- Due to demographic assumption 4.6 23.6
- Due to finance assumption 6.4 (20.2)
- Due to experience adjustment (13.0) (2.4)
Return on plan assets excluding net interest (0.7) 2.7
Total amount recognised in OCI (2.7) 3.7
VI) Category of assets as at the end of the year:
Cash & Cash Equivalents 0.0% 3.4%
Equity Instruments 0.0% 0.5%
Debt Instruments - Government Bonds 41.9% 34.6%
Debt Instruments - Other Bonds 6.5% 9.6%
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 335

Notes

Forming part of the Consolidated Financial Statements

Notes Forming part of the Consolidated Financial Statements
Sr. No. Particulars	(₹ in million) Lump sum Retirement Benefits (funded)
	As at 31.03.2024 As at 31.03.2023
Unit Investment Trust Funds	50.5% 56.5%
Others	1% (4.6)%
VII) Actual return on the plan assets:	7.4 0.5
VIII) Assumptions used in accounting for the gratuity plan:
Mortality (%)	Rates stipulated in 2001 CSO Table
Discount rate (%)	6.3 6.6
Salary escalation rate (%)	6.0 6.0
Average Remaining Service (years)	22.1 22.1
Employee Attrition Rate (%)	11.3 11.3

IX) Expected future benefit payments

IX) Expected future benefit payments
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
First year	9.3 9.5
Second year	9.4 5.6
Third year	6.9 8.3
Fourth year	6.9 6.0
Fifth year	35.9 7.0
Beyond fiveyears	148.9 165.4

The estimates of salary escalation, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Sensitivity analysis

Reasonably, possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:

Gratuity	31.03.2024	(₹ in million) 31.03.2023
	Increase Decrease	Increase Decrease
Discount Rate (1% movement)	23.4 (20.1)	22.5 (19.2)
Future salary growth (1% movement)	23.2 (20.4)	22.4 (19.5)

c) Laboratorios Grin S.A. de C.V., Mexico

The subsidiary at Mexico has retirement plan to cover its employees which are required by law.

Under the plan, employees are entitled to benefits based on level of salaries, length of service and certain other factors at the time of retirement or termination.

The most recent actuarial valuation of the present value of the defined benefit obligation for retirement benefits were carried out as at 31.03.2024. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method.

The following table sets out the status of the retirement plan and the amounts recognised in the Group’s financial statements as at balance sheet date:

Sr. No. Particulars	(₹ in million) Lump sum Retirement Benefits (unfunded)
	As at 31.03.2024 As at 31.03.2023
I) Change in present value of obligation ('PVO') - defined benefit obligation:
PVO at the beginning of the year	121.4 76.1
Current service cost	25.6 17.3
Past service cost	- 23.4
Interest cost	9.7 6.3
Actuarial loss/(gain)
- Due to Curtailment	19.4 26.0
- Due to demographic assumption	- -
- Due to finance assumption	1.1 (4.1)
- Due to experience adjustment	4.5 (2.2)
Benefitspaid	(31.2) (39.4)

336 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

==> picture [487 x 352] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Lump sum Retirement Benefits (unfunded)
Particulars
No. As at 31.03.2024 As at 31.03.2023
Foreign exchange translation difference 14.0 18.0
PVO at the end of the year 164.4 121.4
II) Reconciliation of PVO and fair value of plan assets:
PVO at the end of the year 164.4 121.4
Fair Value of plan assets at the end of the year - -
Funded status (164.4) (121.4)
- -
Unrecognised actuarial loss/(gain)
Net liability recognised in the Consolidated Balance Sheet (164.4) (121.4)
III) Expense recognised in the Consolidated Statement of Profit and Loss:
Current service cost 25.6 17.3
Past service cost - 23.4
Net Interest 9.7 6.3
Curtailment effect 19.4 26.0
Loss/(gain) recognized in OCI 3.4 6.0
Total expense recognised in the Consolidated Statement of Profit and Loss 58.1 79.0
IV) Other Comprehensive Income:
Actuarial loss /(gain)
- Due to demographic assumption - -
- Due to finance assumption 1.1 (4.1)
- Due to experience adjustment 4.5 (2.2)
Loss/(gain) recognized in OCI (3.4) (6.0)
Total amount recognised in OCI 2.2 (12.3)
V) Assumptions used in accounting for the gratuity plan:
Mortality (%) Experience Social insurance by gender
Discount rate (%) 9.4 8.6
Salary escalation rate (%) 5.0 5.0
Average Remaining Service (years) 9.4 9.6
Employee Attrition Rate (%) 16.9 16.9
----- End of picture text -----

VI) Expected future benefit payments

VI) Expected future benefit payments
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
First year	44.6 27.5
Second year	34.3 31.8
Third year	32.7 25.1
Fourth year	31.6 23.9
Fifth year	30.0 23.0
Beyond fiveyears	139.8 107.1

The estimates of salary escalation, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Sensitivity analysis

Reasonably, possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:

Gratuity	(₹ in million) 31.03.2024 31.03.2023
	Increase Decrease Increase Decrease
Discount Rate (0.5 % movement)	(2.8) 3.0 (2.1) 2.2

d) Lupin Diagnostics Limited, India

Lupin Diagnostics Limited ‘s current gratuity plan is funded as well as unfunded and the liability is determined based on actuarial valuation. The most recent actuarial valuation of the present value of the defined benefit obligation for gratuity were carried out as at 31.03.2024. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method.

Corporate Overview Statutory Reports Financial Statements 337

Notes

Forming part of the Consolidated Financial Statements

The following table sets out the status of the retirement plan and the amounts recognised in the Group’s financial statements as at balance sheet date:

==> picture [486 x 605] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Gratuity (Funded) Gratuity (Unfunded)
No. Particulars As at As at As at As at
31.03.2024 31.03.2023 31.03.2024 31.03.2023
Change in present value of obligation ('PVO') - defined benefit
I)
obligation:
PVO at the beginning of the year 6.3 1.3 2.3 0.3
Current service cost 4.4 2.5 1.0 0.7
Past service cost - - - -
Interest cost 0.5 0.1 0.2 0.0
Actuarial loss/(gain)
- Due to demographic assumption - - - -
- Due to finance assumption 0.5 (0.1) 0.3 0.0
- Due to experience adjustment 0.1 2.5 0.1 1.1
Benefits paid - - - -
PVO at the end of the year 11.8 6.3 3.8 2.3
II) Change in fair value of plan assets:
Fair value of plan assets at the beginning of the year - - - -
Expected return on plan assets 0.4 - - -
Interest Income - - - -
Contributions by the employer 8.6 - - -
Benefits paid - - - -
Fair value of plan assets at the end of the year 9.0 - - -
III) Reconciliation of PVO and fair value of plan assets:
PVO at the end of the year 11.8 6.3 3.8 2.3
Fair Value of plan assets at the end of the year 9.0 - - -
Funded status (2.8) (6.3) (3.8) (2.3)
- - - -
Unrecognised actuarial loss/(gain)
Net liability recognised in the Balance Sheet (2.8) (6.3) (3.8) (2.3)
IV) Expense recognised in the Statement of Profit and Loss:
Current service cost 4.4 2.5 1.0 0.7
Past service cost - - - -
Interest cost 0.5 0.1 0.2 0.0
Total expense recognised in the Statement of Profit and Loss 4.9 2.6 1.2 0.8
V) Other Comprehensive Income:
Actuarial loss/(gain)
- Due to demographic assumption - - - -
- Due to finance assumption 0.5 (0.1) 0.3 0.0
- Due to experience adjustment 0.1 2.5 0.1 1.1
- - -
Return on plan assets excluding net interest (0.4)
Total amount recognised in OCI 0.2 2.4 0.4 1.2
VI) Category of assets as at the end of the year:
Insurer Managed Funds (100%)
(Fund is Managed by LIC as per IRDA guidelines category-wise 9.0 NA NA NA
composition of the plan assets is not available)
VII) Actual return on the plan assets: 0.4 NA NA NA
VIII) Assumptions used in accounting for the gratuity plan:
Mortality (%) Rates stipulated in Indian Assured Lives Mortality 2012-14 from 01.04.2019 onwards.
Discount rate (%) 7.2% 7.4% 7.2% 7.4%
9.0 for first 9.0 for first 9.0 for first 9.0 for first
Salary escalation rate (%) three years and 6.0 three years and 6.0 three years and 6.0 three years and 6.0
thereafter thereafter thereafter thereafter
Average Remaining Service (years) 26.2 26.3 26.2 26.3
Employee Attrition Rate (%)
up to 5 years 15 15 15 15
above 5 years 5 5 5 5
----- End of picture text -----

338 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

IX) Expected future benefit payments

IX) Expected future benefit payments
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
1 year	0.3 0.2
2 to 5 years	5.6 1.7
6 to 10 years	5.0 4.9
More than 10years	31.7 15.4

The estimates of salary escalation, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Sensitivity analysis

Reasonably, possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:

Gratuity	(₹ in million) 31.03.2024 31.03.2023
	Increase Decrease Increase Decrease
Discount Rate (1% movement)	(14.0) 17.5 (7.7) 9.6
Future salary growth (1% movement)	17.5 (14.0) 9.6 (7.7)
Attrition rate (- / + 50% of attrition rates)	(13.7) 17.9 (7.5) 9.8

e) Lupin Digital Health Limited, India

Lupin Digital Health Limited’s current gratuity plan is funded as well as unfunded and the liability is determined based on actuarial valuation. The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31.03.2024. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method.

The following table sets out the status of the retirement plan and the amounts recognised in the Group’s financial statements as at balance sheet date:

==> picture [485 x 339] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Gratuity (Funded) Gratuity (Unfunded)
No. Particulars As at As at As at As at
31.03.2024 31.03.2023 31.03.2024 31.03.2023
Change in present value of obligation ('PVO') - defined benefit
I)
obligation:
PVO at the beginning of the year 0.8 - 0.2 -
Current service cost 2.2 0.8 0.4 0.2
Past service cost - - - -
Transfer in - - - -
Interest cost 0.1 - 0.0 -
Actuarial loss / (gain)
- Due to demographic assumption - - - -
- Due to finance assumption 0.2 - - -
- -
- Due to experience adjustment (0.1) (0.1)
- Due to Others - - - -
Benefits paid - - - -
PVO at the end of the year 3.1 0.8 0.6 0.2
II) Change in fair value of plan assets:
Fair value of plan assets at the beginning of the year - - - -
Expected return on plan assets - - - -
Interest Income 0.1 - - -
Contributions by the employer 1.0 - - -
Benefits paid - - - -
Fair value of plan assets at the end of the year 1.1 - - -
III) Reconciliation of PVO and fair value of plan assets:
PVO at the end of the year 3.1 0.8 0.6 0.2
Fair Value of plan assets at the end of the year 1.1 - - -
Funded status (2.1) (0.8) (0.6) (0.2)
- - - -
Unrecognised actuarial loss/(gain)
Net liability recognised in the Balance Sheet (2.1) (0.8) (0.6) (0.2)
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 339

Notes

Forming part of the Consolidated Financial Statements

==> picture [486 x 409] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Gratuity (Funded) Gratuity (Unfunded)
No. Particulars As at As at As at As at
31.03.2024 31.03.2023 31.03.2024 31.03.2023
IV) Expense recognised in the Statement of Profit and Loss:
Current service cost 2.2 0.8 0.4 0.2
Interest cost 0.1 - 0.0 -
Total expense recognised in the Statement of Profit and Loss 2.2 0.8 0.4 0.2
V) Other Comprehensive Income:
Actuarial loss / (gain)
- Due to demographic assumption - - - -
- Due to finance assumption 0.2 - - -
- -
- Due to experience adjustment (0.1) (0.1)
- - -
Return on plan assets excluding net interest (0.1)
Total amount recognised in OCI 0.0 - (0.1) -
VI) Category of assets as at the end of the year:
Insurer Managed Funds (100%)
(Fund is Managed by ICICI as per IRDA guidelines category-wise 1.1 - - -
composition of the plan assets is not available)
VII) Actual return on the plan assets: 0.1 - - -
VIII) Assumptions used in accounting for the gratuity plan:
Mortality (%) Rates stipulated in Indian Assured Lives Mortality 2012-14 from 01.04.2019 onwards
Discount rate (%) 7.2% 7.4% 7.2% 7.4%
9.0 for first three years and
Salary escalation rate (%) 6.0 thereafter
Average Remaining Service (years) 27.1 25.8 27.1 25.8
Employee Attrition Rate (%)
up to 5 years 15 15 15 15
above 5 years 5 5 5 5
IX) Estimate of amount of contribution in immediate next year 2.7 - NA NA
X) Expected future benefit payments
(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
1 year 0.0 -
2 to 5 years 0.5 0.1
6 to 10 years 1.6 0.5
More than 10 years 7.5 2.6
----- End of picture text -----

The estimates of salary escalation considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions holding other assumptions constant would have affected the defined benefit obligation by the amounts shown below:

==> picture [486 x 79] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
31.03.2024 31.03.2023
Gratuity
Increase Decrease Increase Decrease
Discount Rate (1% movement) 2.7 (3.6) 0.9 (1.1)
Future salary growth (1% movement) 3.5 (2.8) 1.1 (0.9)
Mortality rate (10% mortality rates) 3.1 (3.1) 1.0 (1.0)
Attrition rate (- / + 50% of attrition rates) 2.4 (3.9) 0.7 (1.4)
----- End of picture text -----

f) Lupin Manufacturing Solutions Limited, India

Lupin Manufacturing Solutions Limited’s current gratuity plan is funded as well as unfunded and the liability is determined based on actuarial valuation. The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31.03.2024. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method.

340 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

Based on the actuarial valuation obtained in this respect the following table sets out the status of the gratuity plan and the amounts recognised in the Group’s financial statements as at the Balance Sheet date.

==> picture [486 x 593] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Particulars Gratuity (Funded) Gratuity (Unfunded)
No. As at 31.03.2024 As at 31.03.2024
I) Change in present value of obligation ('PVO') - defined benefit obligation:
PVO as at 24.07.2023 85.0 30.2
Current service cost 4.0 1.3
Past service cost - -
Interest cost 2.5 0.9
Actuarial loss/(gain)
- Due to demographic assumption - -
- Due to finance assumption - -
- Due to experience adjustment 0.5 1.6
-
Benefits paid (0.2)
PVO at the end of the year 92.0 33.8
II) Change in fair value of plan assets:
Fair value of plan assets as at 24.07.2023 - -
Expected return on plan assets - -
Interest Income - -
Contributions by the employer 0.9 -
Benefits paid - -
Fair value of plan assets at the end of the year 0.9 -
III) Reconciliation of PVO and fair value of plan assets:
PVO at the end of the year 92.0 33.8
Fair Value of plan assets at the end of the year 0.9 -
Funded status (91.1) (33.8)
- -
Unrecognised actuarial loss/(gain)
Net liability recognised in the Balance Sheet (91.1) (33.8)
IV) Expense recognised in the Statement of Profit and Loss:
Current service cost 4.0 1.3
Past service cost - -
Interest cost 2.5 0.9
Total expense recognised in the Statement of Profit and Loss * 6.5 2.2
V) Other Comprehensive Income:
Actuarial loss/(gain)
- Due to demographic assumption - -
- Due to finance assumption - -
- Due to experience adjustment 0.5 1.6
Return on plan assets excluding net interest - -
Total amount recognised in OCI 0.5 1.6
VI) Category of assets as at the end of the year:
Insurer managed Funds (100%)
(Fund is managed by LIC as per IRDA guidelines category-wise composition of the 0.9 -
plan assets is not available)
- -
VII) Actual return on the plan assets:
VIII) Assumptions used in accounting for the gratuity plan:
Mortality (%) Mortality 2012Rates stipulated in Indian Assured Lives -14 from 01.04.2019 onwards.
Discount rate (%) 7.2% 7.2%
9.0 for first three years 9.0 for first three years
Salary escalation rate (%) and 6.0 thereafter and 6.0 thereafter
Average Remaining Service (years) 10.5 10.5
Employee Attrition Rate (%)
up to 5 years 15 15
above 5 years 5 5
IX) Estimate of amount of contribution in immediate next year 13.2 NA
----- End of picture text -----

*₹ 0.0 million capitalised as pre-operative expenses out of above amount.

Corporate Overview Statutory Reports Financial Statements 341

Notes

Forming part of the Consolidated Financial Statements

X) Expected future benefit payments

X) Expected future benefit payments
Particulars	(₹ in million)
	As at 31.03.2024
1 year	8.4
2 to 5 years	39.2
6 to 10 years	60.9
More than 10years	165.4

The estimates of salary escalation considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions holding other assumptions constant would have affected the defined benefit obligation by the amounts shown below:

Gratuity	(₹ in million) 31.03.2024
	Increase Decrease
Discount Rate (1% movement)	(10.6) 12.2
Future salary growth (1% movement)	12.1 (10.7)
Attrition rate (- / + 50% of attrition rates)	(1.7) 2.0

47. Income Taxes

a) Tax expense recognised in Consolidated Statement of Profit and Loss:

47.Income Taxes a) Tax expense recognised in Consolidated Statement of Profit and Loss:
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Current Tax expense for the year	6,343.6 2,462.5
Tax expense of prior years	(5.1) 1.7
Net Current Tax expense	6,338.5 2,464.2
Deferred income tax liability/(asset), net
Origination and reversal of temporarydifferences	(1,471.5) 223.8
Tax expense for theyear	4,867.0 2,688.0

b) Tax expense recognised in Other Comprehensive Income:

b) Tax expense recognised in Other Comprehensive Income:
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Items that will not be reclassified to profit or loss
Re-measurements of the defined benefit plans	47.0 9.4
Items that will be reclassified to profit or loss
The effectiveportion ofgain or loss on hedginginstruments in a cash flow hedge	(39.2) 131.9
Total	7.8 141.3

Management judgment is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets. During the year, the Group has recognized deferred tax asset of ₹ 28.8 million (31.03.2023 ₹ nil) on unused tax loss. Based on the level of historical taxable income and projections of future taxable income over the periods in which the deferred tax assets are deductible, management believes that the Group will realize the benefits of those recognized deductible differences and tax loss carry forwards.

The current tax in respect of foreign subsidiaries has been computed considering the applicable tax laws and tax rates of the respective countries, as certified by the local tax consultants/local management of the said subsidiaries.

342 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

• c) Reconciliation of Consolidated tax expense and the Consolidated accounting profit multiplied by India’s domestic tax rate:

==> picture [486 x 149] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Profit/(Loss) before share of profit of joint venture 24,222.7 7,164.9
Tax using the Company’s domestic tax rate (31.03.2024: 34.94%, 31.03.2023: 34.94%) 8,464.4 2,503.7
Tax effect of:
Differences in Indian and foreign tax rates 466.8 (263.5)
Unrecognised deferred tax assets/recognition of previously unrecognised deferred tax assets, net 1,363.7 1,924.0
Expenses not deductible for tax purposes 1,401.2 1,594.4
Incremental deduction on account of Research and Development costs (227.6) (163.5)
Exemption of profit link incentives (6,486.2) (2,485.2)
Foreign exchange differences (5.5) (238.9)
Others (104.7) (184.7)
Current and Deferred Tax expense (excluding prior year taxes) as per note 47(a) 4,872.1 2,686.3
----- End of picture text -----

• d) Movement in deferred tax balances:

==> picture [486 x 177] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
As at As at
Particulars 01.04.2023 Recognised in/under 31.03.2024
Business
Net Profit or Retained Combination Net
Deferred Tax Assets/(Liabilities) balance Loss earnings / OCI / Asset FCTR balance
Acquisition
Property, Plant and Equipment (3,394.1) (614.5) - (241.2) 5.4 (4,244.4)
Cash Flow Hedge Reserve 109.3 (0.4) (39.2) - 0.1 69.8
Operating Tax loss and interest loss carry forward - - - - - -
Provision for Expenses 207.7 (13.9) - - 19.1 212.9
Deferred Income 200.6 18.2 - - - 218.8
Provision for Employee Benefit 1,415.8 254.7 47.0 - 3.3 1,720.8
Impairment Allowances for Trade Receivable / 180.1 67.5 - - 1.6 249.2
Bad Debts
Unrealised Profits on unsold inventories 581.2 1,716.0 - - - 2,297.2
Others (38.4) 43.9 - - 36.8 42.3
Net Deferred Tax Assets/(Liabilities) (737.8) 1,471.5 7.8 (241.2) 66.3 566.6
----- End of picture text -----

						(₹ in million)
Particulars	As at 01.04.2022		Recognised	in/under		As at 31.03.2023
				Business
Deferred Tax Assets/(Liabilities)	Net balance	Profit or Loss	Retained earnings / OCI	Combination / Asset	FCTR	Net balance
				Acquisition
Property, Plant and Equipment	(3,183.0)	(217.5)	-	-	6.4	(3,394.1)
Cash Flow Hedge Reserve Operating Tax loss and interest loss carry forward Provision for Expenses Deferred Income Provision for Employee Benefit Impairment Allowances for Trade Receivable / Bad Debts Unrealised Profits on unsold inventories Others	(22.5) 45.4 225.5 111.2 1,335.5 143.9 804.5 (171.5)	- (44.2) (40.9) 89.4 66.9 36.5 (223.2) 109.2	131.9 - - - 9.4 - - -	- - - - - - - -	(0.1) (1.2) 23.1 - 4.0 (0.3) (0.1) 23.9	109.3 - 207.7 200.6 1,415.8 180.1 581.2 (38.4)
Net Deferred Tax Assets/(Liabilities)	(711.0)	(223.8)	141.3	-	55.7	(737.8)

Corporate Overview Statutory Reports Financial Statements 343

Notes

Forming part of the Consolidated Financial Statements

Reflected in the balance sheet as follows:

Reflected in the balance sheet as follows:
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Deferred Tax Asset	3,025.3 1,556.5
Deferred Tax Liability	(2,458.7) (2,294.3)
Deferred Tax Asset/(Liabilities)(net)	566.6 (737.8)

• e) Operating loss carry forward consists of business losses, capital losses and unabsorbed depreciation. Deferred tax assets have not been recognized on operating losses of ₹ 45,784.4 million (previous year ₹ 41,822.6 million) and Minimum Alternative Tax (MAT) credit of ₹ 1,271.5 million (previous year ₹ 854.5 million) on conservative basis. A portion of this total loss can be carried indefinitely and the remaining loss/ MAT Credits will expire at various dates ranging from 2024 through 2039 (previous year from 2023 through 2039) and some of this loss can be carry back till 2011.

48. Research and Development

The aggregate amount of revenue expenditure incurred by the Group during the year on Research and Development and shown in the respective heads of account is ₹ 15,265.0 million (31.03.2023 ₹ 12,800.1 million).

49. Acquisition/Subscriptions/Disposals details of Subsidiaries

• a) During the year, the Company, through its wholly owned subsidiary Lupin Atlantis Holdings SA, acquired/subscribed to the equity stake of the following subsidiaries:

• (i) Company has acquired 100% stake in Medisol S.A.S., France and Lymed S.A.S., France at a total cost of ₹ 1,836.2 million. (ii) Additional investment in Lupin Europe GmbH, Germany at a total cost of ₹ nil (31.03.2023 ₹ 131.7 million) as capital contribution.

• b) During the year, the Company, through its wholly owned subsidiary Nanomi B.V. acquired/subscribed to the equity stake of the following subsidiaries:

• (i) Additional Investment in Generic Health SDN. BHD., Malaysia at a total cost of ₹ 1.2 million (31.03.2023 ₹ nil) as additional paid-in capital.

• (ii) Additional Investment in Lupin Inc., USA at a total cost of ₹ nil (31.03.2023 ₹ 7,036.8 million) as additional paid-in capital.

• c) During the year, the Company, acquired/subscribed to the equity stake of the following subsidiaries: (i) Investment in Lupin Manufacturing Solutions Limited, India at a total cost of ₹ 95 million as paid-in capital.

• (ii) Lupin Life Sciences Limited, India (formerly known as Lupin Atharv Ability Limited, India) at a total cost of ₹ 1 million as paidin capital.

• (iii) Investment in Lupin Digital Health Limited, India at a total cost of ₹ 501.9 million (31.03.2023 ₹ 599.9 million) as paid-in capital. Of these, ₹ 119.5 million (31.03.2023 ₹ 165.7 million) is against Share Capital and balance ₹ 382.4 million (31.03.2023 ₹ 434.2 million) is against Securities Premium.

• (iv) Additional investment in Nanomi B.V., Netherlands at a total cost of ₹ 1,698.2 million (31.03.2023 ₹ 7,008.9 million) as additional paid-in capital. Of these, ₹ 998.9 million (31.03.2023 ₹ 4,122.9 million) is against Share Capital and balance ₹ 699.3 million (31.03.2023 ₹ 2,886.0 million) is against Securities Premium.

• (v) Investment in Lupin Biologics Limited, India at a total cost of ₹ nil (31.03.2023 ₹ 0.5 million ) as paid-in capital.

• d) During the year, the Company, acquired/subscribed to the Optionally Convertible Non-cumulative Redeemable Preference Shares (OCNRPS) in Lupin Diagnostics Limited, India at a total cost of ₹ 500 million (31.03.2023 ₹ 500 million).

• e) During the year, the Company, acquired/subscribed to the Unsecured Optionally Convertible Non-cumulative Redeemable Debentures (UOCD) in Lupin Diagnostics Limited, India at a total cost of ₹ 500 million.

• f) During the year, the Company, acquired/subscribed to the Unsecured Optionally Convertible Debentures (UOCD) in Lupin Manufacturing Solutions Limited, India at a total cost of ₹ 8,000 million.

The above acquisitions/subscriptions/disposals are based on the net asset values, the future projected revenues, operating profits, cash flows and independent valuation reports, as applicable, of the investee companies.

50. Acquisition through Business Combination

• a) Lupin Atlantis Holdings SA, Switzerland, the wholly owned subsidiary of the Company on 01.09.2023 acquired 100% equity directly/ indirectly in Medisol S.A.S. and Lymed S.A.S. These entities are incorporated in France and specializes in commercializing the Generics Injectable products. The acquisition is part of Lupin’s strategy to expand the presence in the EU and accelerate the Injectables franchise in France.

The total consideration at which the acquisition was made is ₹ 1,836.2 million. The purchase price was allocated based on estimated fair values at the acquisition date, for various assets and liabilities acquired/assumed under a Share Purchase Agreement. The fair values were determined based on its then estimates and third-party technical evaluation for various tangible and intangible assets acquired.

The purchase price allocation carried out during the current year resulted in goodwill of ₹ 651.7 million. The goodwill is attributable to strengthening the injectables portfolio in France, the second-largest market in Europe for injectables. These entities have unique product portfolio which complements Lupin’s existing range, enabling the group to offer the customers an even more robust selection of high-quality products.

344 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

The following table summarizes the allocation of purchase price consideration, for the fair values of the assets acquired and liabilities assumed and the resultant goodwill:

==> picture [486 x 239] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 01.09.2023
Purchase Consideration paid (A) 1,836.2
Fair value of assets acquired
Non-Current
Property, Plant and Equipment 0.2
Other Intangible Assets 942.9
Current
Inventories 138.7
Trade Receivables 69.5
Cash and cash equivalents 342.2
Other assets 2.3
Total Assets [i] 1,495.8
Liabilities Assumed
Trade payables 24.9
Other payables 45.2
Deferred tax liability 241.2
Total Liabilities [ii] 311.3
Total Identifiable Net Assets [i-ii] (B) 1,184.5
Goodwill arising on acquisition (A-B) 651.7
Cash Outflows arising on acquisition
Purchase consideration paid/payable in cash 1,494.2
Deferred consideration payable 342.0
Total 1,836.2
----- End of picture text -----*

*Payable in cash subject to certain financial milestones as per Share Purchase Agreement. Of this, an amount of ₹ 294.4 million has been paid upto 31.03.2024 and balance amount of ₹ 47.6 million is expected to be paid over a period of 3 years.

Summary of post acquisition revenue and gain of the acquired entity included in the Consolidated Statement of Profit and Loss for the year ended 31.03.2024:

Particulars	(₹ in million)
	Year ended 31.03.2024
Revenue	370.8
Profit/(Loss)considered in the Consolidated Statement of Profit and Loss	(73.7)

b) Brand Acquisition - Anglo French Drugs and Industries Limited (AFDIL):

During the previous year, the Company had acquired market leading brands in nutraceuticals, CNS, skin and respiratory segments from Anglo French Drugs and Industries Limited and its Associates to strengthen the Company’s India Formulation business. The purchase price allocation carried out resulted in goodwill of ₹ 158.6 million. The following table summarizes the allocation of purchase price consideration, for the fair values of the assets acquired and liabilities assumed and the resultant goodwill.

==> picture [486 x 187] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 07.04.2022
Purchase Consideration paid (A) 3,250.0
Fair Value of Assets Acquired :
Non-Current
Other Intangible Assets
Trademarks and Licences 2,855.3
Knowhow 146.1
Current
Inventories 90.0
Total Assets [i] 3,091.4
-
Total Liabilities [ii]
Total Identifiable Net Assets [i-ii] (B) 3,091.4
Goodwill arising on acquisition (A-B) 158.6
Cash Outflows arising on acquisition
Purchase consideration paid/payable in cash 2,950.0
Contingent Consideration payable (subsequently paid) 50.0
Deferred consideration payable 250.0
Total 3,250.0
----- End of picture text -----*

*The amount of ₹ 250 million is payable in 3 equal installments over the period of 3 years from the date of acquisition as per Escrow agreement along with interest thereon.

Corporate Overview Statutory Reports Financial Statements 345

Notes

Forming part of the Consolidated Financial Statements

Summary of post acquisition revenue and Profit/Loss of the acquired brand included in the Consolidated Statement of Profit and Loss for the year ended 31.03.2023

Summary of post acquisition revenue and Profit/Loss of the acquired brand included in the Consolidated Statement for the year ended 31.03.2023	of Profit and Loss
Particulars	(₹ in million)
	Year ended 31.03.2023
Revenue	652.4
Gross margin considered in the Consolidated Statement of Profit and Loss	434.5
The valuation techniques used for measuring the fair value of assets acquired were as follows: Asset Acquired Valuation technique
Trademarks and Licences The valuation was carried out as per Multi-period Excess Earning Method
Knowhow The valuation was carried out as per Relief from Royalty Method
Inventories The valuation was carried out at cost

51. Asset Acquisition

• a) On August 18, 2023, the Company acquired diabetes brands ONDERO® and ONDERO MET®, from Boehringer Ingelheim International GmbH (Boehringer Ingelheim), including the trademark rights associated with these brands. The Company has been marketing ONDERO® and ONDERO MET® since 2015 in the Indian market as part of a co-marketing agreement with Boehringer Ingelheim India. The transaction was accounted as an asset acquisition with the total purchase price of ₹ 2,300.2 million (Euro 26 million) and classified under intangible assets.

• b) On September 22, 2023, the Company acquired five legacy brands in strategic therapy areas - Gastroenterology, Urology and Anti-infectives from Menarini (A. Menarini India Private Limited and A. Menarini Asia-Pacific Holdings Pte. Ltd.), along with the associated trademark rights. The brands are Piclin (Picosulphate Sodium), Menoctyl (Otilonium Bromide), Sucramal O (Sucralfate + Oxetacaine), Pyridium (Phenazopyridine) and Distaclor (Cefaclor). The transaction was accounted as an asset acquisition with the total purchase price of ₹ 1,043.2 million and classified under intangible assets.

• c) During the previous year, the Company through its step down subsidiary, Lupin Inc., USA entered into an agreement with Sunovion Pharmaceuticals Inc. to acquire two inhalation medicines: Brovana (Arformoterol tartrate) Inhalation solution and Xopenex HRA (levalbuterol tartrate) Inhalation Aerosol for a total consideration of ₹ 6,022.6 million (USD 75 million). This transaction was classified under intangible assets.

• d) During the previous year, the Company through its wholly owned subsidiary, Medquímica Indústria Farmacêutica LTDA, Brazil entered agreement to acquire all rights to nine medicines from BL Industria Otica Ltda., a subsidiary of Bausch Health Companies Inc for a total consideration of ₹ 296.8 million (BRL 19 million). This transaction was classified under intangible assets.

52. Goodwill

Impairment testing of Goodwill

For the purposes of impairment testing, carrying amount of goodwill has been allocated to the following Cash Generating Units (CGU’s) as follows:

==> picture [486 x 146] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
South Africa 5,326.9 5,575.6
Germany 341.5 339.9
Philippines 292.0 298.3
Australia 971.8 988.2
Netherlands 850.8 846.9
Brazil 1,047.0 1,017.7
Mexico 5,681.1 5,149.1
United States of America 7,930.0 7,813.5
India 158.6 158.6
France 650.7 -
Total 23,250.4 22,187.8
----- End of picture text -----

Movement in Goodwill is on account of exchange difference on consolidation amounting to ₹ 411.9 million and acquisition of Medisol S.A.S. in France amounting to ₹ 650.7 million.

The recoverable amounts of the above CGU’s have been assessed using a value-in-use model. Value-in-use is generally calculated as the net present value of the projected post-tax cash flows plus a terminal value of the cash generating unit to which the goodwill is allocated. Initially a post-tax discount rate is applied to calculate the net present value of the post-tax cash flows.

The key assumptions used in the estimation of the recoverable amount are set out below:

The values assigned to the key assumptions represent management’s assessment of future trends in the relevant industries and have been based on historical data from both external and internal sources.

The cash flow projections are based on five years specific estimates, five years estimates developed using internal forecasts and a terminal growth rate thereafter considering the value in use of cash generating units is better reflected by projections for 10 years due to the business life cycle and longer term gestation of products. The planning horizon reflects the assumptions for short-to-midterm market developments and have been adjusted for the risks of competition, product life cycle etc.

346 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

The terminal growth rates used in extrapolating cash flows beyond the planning horizon ranged from -5% to 5.5% for the year ended 31.03.2024 and from -5% to 5% for the year ended 31.03.2023.

Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated based on the weighted average cost of capital for respective CGU or group of CGUs. Post-tax discount rate used ranged from 7.2% to 17.6% for the year ended 31.03.2024 and from 8.3% to 21.9% for the year ended 31.03.2023.

The Company believes that any reasonably possible change in the key assumptions on which a recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the CGUs.

53. a) The Company through Lupin Atlantis Holdings SA , Switzerland (LAHSA) holds 100% equity stake at a cost of ₹ 279.7 million (31.03.2023 ₹ 279.7 million) in Lupin Healthcare UK Ltd, UK (LHUL). The said subsidiary has negative net worth as at the end of the year. Considering the financial, technical and operational support from the Company and LHUL’s projections / plans for introducing new products (including products from the Company) in the UK Market in the near future, growth in the turnover and profitability is expected, which would result in improvement in net worth, over a period of time.

• b) The Company holds 100% equity stake at a cost of ₹ 1,040.6 million (31.03.2023 ₹ 334.2 million) in Lupin Diagnostics Limited, India. The said subsidiary has negative net worth as at the end of the year. Considering the financial, technical and operational support from the Company and Lupin Diagnostics Limited’s projections / plans, the Company is of the view that this would lead to an improvement in growth, turnover and profitability, which would result in improvement in net worth, over a period of time.

• c) The Company holds 99.3% equity stake at a cost of ₹ 1,127.9 million (31.03.2023 ₹ 1,127.9 million) in Lupin Oncology Inc., USA. The said subsidiary has negative net worth as at the end of the year. Considering the financial, technical and operational support from the Company and Lupin Oncology Inc’s projections / plans, the Company is of the view that this would lead to an improvement in growth, turnover and profitability, which would result in improvement in net worth, over a period of time.

• d) The Company through Nanomi B.V., Netherlands holds 100% equity stake at a cost of ₹ 59.9 million (31.03.2023 ₹ 59.9 million) in Lupin Philippines Inc., Philippines. The said subsidiary has negative net worth as at the end of the year. Considering the financial, technical and operational support from the Company and Lupin Philippines Inc’s projections / plans, the Company is of the view that this would lead to an improvement in growth, turnover and profitability, which would result in improvement in net worth, over a period of time.

• e) The Company through Nanomi B.V., Netherlands holds 100% equity stake at a cost of ₹ 67,268.8 million (31.03.2023 ₹ 67,268.8 million) in Lupin Inc., USA. The said subsidiary has negative net worth as at the end of the year. Considering the financial, technical and operational support from the Company and Lupin Inc., projections / plans, the Company is of the view that this would lead to an improvement in growth, turnover and profitability, which would result in improvement in net worth, over a period of time.

• f) The Company through Nanomi B.V., Netherlands and LAHSA holds 100% equity stake at a cost of ₹ 1,186.8 million (31.03.2023 ₹ 2,271.3 million) in Medquímica Indústria Farmacêutica LTDA, Brazil. The said subsidiary has negative net worth as at the end of the year. Considering the financial, technical and operational support from the Company and Medquímica Indústria Farmacêutica LTDA’s projections / plans, the Company is of the view that this would lead to an improvement in growth, turnover and profitability, which would result in improvement in net worth, over a period of time.

• g) Further, net worth of Pharma Dynamics (Proprietary) Limited, Lupin Australia Pty Limited, Lupin Mexico S.A. de C.V., Generic Health SDN. BHD., Laboratorios Grin S.A. de C.V., Novel Laboratories Inc., Lupin Europe GmbH, Lupin Biologics Limited, Lupin Digital Health Limited, Southern Cross Pharma Pty Ltd, Lupin Manufacturing Solutions Limited and Lymed S.A.S. are substantially less than the carrying amount of investments made by the Company directly or through its subsidiaries.

The Group considers its investments in subsidiaries as strategic and long-term in nature and accordingly no provision for diminution in value of investments is considered necessary.

54. a) Non-controlling Interest represents the non-controlling’s share in equity of the subsidiaries as below:

==> picture [486 x 155] intentionally omitted <==

----- Start of picture text -----

Principal Place Country of Held by Non- Controlling As at
Name of the subsidiary of Business Incorporation Interest 31.03.2024 31.03.2023
(i) Multicare Pharmaceuticals Philippines Inc. Philippines Philippines Beneficial ownership/ 49.00% 49.00%
Voting power
(ii) Lupin Oncology Inc. USA USA Beneficial ownership/ 0.67% 0.67%
Voting power
(₹ in million)
Profit/(loss) allocated to Accumulated
non-controlling interests non-controlling interests
Name of the subsidiary
Year Ended Year Ended
As at 31.03.2024 As at 31.03.2023
31.03.2024 31.03.2023
(i) Multicare Pharmaceuticals Philippines Inc. 216.4 185.4 845.0 790.8
(ii) Lupin Oncology Inc. (5.5) (9.0) (13.4) (7.6)
----- End of picture text -----

The summarised consolidated financial information before inter-company eliminations:

Corporate Overview Statutory Reports Financial Statements 347

Notes

Forming part of the Consolidated Financial Statements

(i) Multicare Pharmaceuticals Philippines Inc., Philippines

==> picture [486 x 601] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Balance Sheet As at 31.03.2024 As at 31.03.2023
- Non-Current Assets 320.6 364.4
- Current assets 3,484.2 2,434.8
- Non-Current Liabilities 107.4 143.4
- Current Liabilities 1,983.7 1,057.0
- Equity Capital 26.9 26.9
- Other Equity 1,686.8 1,571.9
(₹ in million)
Year Ended Year Ended
Statement of Profit and Loss
31.03.2024 31.03.2023
- Total income 3,513.5 2,556.5
- Total expenses excluding exceptional item 2,897.6 2,059.0
- Profit after tax 441.5 378.3
- Total comprehensive income for the year 383.2 460.9
- Dividend Paid 268.3 245.8
(₹ in million)
Year Ended Year Ended
Cash Flows Information
31.03.2024 31.03.2023
- Total income 3,513.5 2,556.5
- Net cash generated from/(used in) operating activities 471.6 426.3
- Net cash generated from/(used in) investing activities (18.2) (95.1)
- Net cash generated from/(used in) financing activities (286.1) (258.6)
(ii) Lupin Oncology Inc, USA
(₹ in million)
Balance Sheet As at 31.03.2024 As at 31.03.2023
- Non-Current Assets 481.3 481.3
- Current assets 277.3 62.3
- Non-Current Liabilities 3,123.8 -
- Current Liabilities 169.7 2,222.8
- Equity Capital 1,135.7 1,135.7
- Other Equity (3,670.6) (2,814.9)
(₹ in million)
Year Ended Year Ended
Statement of Profit and Loss
31.03.2024 31.03.2023
- Total income - -
- Total expenses excluding exceptional item 818.3 1,326.1
- Profit after tax (818.3) (1,326.1)
- Total comprehensive income for the year (855.7) (1,411.5)
- Dividend Paid - -
(₹ in million)
Year Ended Year Ended
Cash Flows Information
31.03.2024 31.03.2023
- Total income - -
- Net cash generated from/(used in) operating activities (2,651.7) (16.3)
- -
- Net cash generated from/(used in) investing activities
- Net cash generated from/(used in) financing activities 2,902.8 (1.2)
b) Interest in Joint Venture:
% shareholding
Name of Joint Venture As at 31.03.2024 As at 31.03.2023
YL Biologics Limited (incorporated in Japan) 45% 45%
Carrying amount of investment (₹ in million) 269.1 300.7
----- End of picture text -----

348 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

==> picture [486 x 171] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Balance Sheet As at 31.03.2024 As at 31.03.2023
- Current assets 606.3 681.5
- Non-current assets - 0.6
- Current liabilities 8.4 13.8
- Non-current liabilities - -
- Equity Capital 597.9 668.3
(₹ in million)
Year ended Year ended
Statement of Profit and Loss
31.03.2024 31.03.2023
- Revenue 9.1 16.0
- Expenses 9.1 16.0
- Tax - 0.1
-
- Profit/(Loss) after tax (0.1)
- Total Comprehensive Income/(Loss) (70.2) (6.0)
----- End of picture text -----

55. Impairment of Product Related Intangibles (IPs)

Following our annual impairment review, the impairment charges recognized during the current year in the consolidated statement of profit and loss in relation to certain intangible assets commercialised, intangible assets under development and Capital work in progress is as follows:

progress is as follows:
Impairment	₹ in million
Intangible assets commercialised	1,324.1
Intangible assets under development Capital work-in-progress	427.6 260.8
Total	2,012.5

Intangible assets commercialised:

During the year, there were certain intangible assets in USA which failed the recoverability test pursuant to a discounted cash flow evaluation and accordingly an impairment charge of ₹ 1,058.5 million was recognised. Further, certain intangibles related to IPs acquired as part of the acquisition from Anglo French Drugs and Industries Limited (AFDIL), related to India market amounting to ₹ 240.2 million are impaired on account of (i) Certain Fixed Dose Combination (FDCs) ban by government and (ii) lower offtake of few brands in generics market, coupled with low margins. Also, an amount of ₹ 25.4 million relates to impairment charge for certain intangibles in few subsidiaries.

Intangible assets under development:

During the year, the group has decided not to further pursue the product development for certain under developed intangibles related to USA markets after factoring the risk and reward associated with the IP and the various alternatives available in the market. The group has accordingly recognised an impairment charge of ₹ 422.1 million. Also, an amount of ₹ 5.5 million relates to impairment charge for certain intangibles assets under development in few subsidiaries.

Capital work-in-progress:

During the year, there were certain unused and dormant assets which failed the recoverability test pursuant to which the group has recognised an impairment of ₹ 260.8 million.

The impairment has been determined by considering each individual intangible asset as a cash generating unit (CGU). Recoverable amount of CGUs for which impairment is done is ₹ 364.3 million. Recoverable amount (i.e. higher of value in use and fair value less cost to sell) of each individual CGU was compared to carrying value and impairment amount was arrived as follows:

• CGUs where carrying value was higher than recoverable amount were impaired and

• CGUs where recoverable amount was higher than carrying value were carried at carrying value.

The fair value so used is categorized as a level 3 valuation in line with the fair value hierarchy per requirements of Ind AS 113 “Fair Value Measurement”.

The fair value had been determined with reference to the discounted cash flow technique.

The key assumptions used in the estimation of the recoverable amounts is as mentioned below. The value assigned to the key assumptions represents management’s assessment of the future trends in the industry and had been based on historical data from both external and internal sources.

external and internal sources.
Assumptions	How Determined
	Based on past experience and adjusted for the following:
Projected cash flows	- Current market dynamics
Long term growth rate	- Anticipated competition Long term growth rate has been determined with reference to market dynamics of each individual product.

Corporate Overview Statutory Reports Financial Statements 349

Notes

Forming part of the Consolidated Financial Statements

Projected cash flows were discounted to present value at a discount rate that is commensurate with all risks of ownership and associated risks of realizing the projected residual profits. Each product category (Currently Marketed Products and approved Post-tax risk adjusted discounting rate ANDAs, Filed ANDAs, and IP R&D) face different risks and accordingly, different discount rates were determined based on each product category’s risk profile. Discount rate was combination of cost of debt and cost of equity. Cost of equity was estimated using capital asset pricing model.

The projected cashflows are discounted at post-tax rate ranging from 7.2% to 17.6%. The terminal growth rate is considered ranging from 5% to -5%.

The cash flow projections are based on five years specific estimates, five years estimates developed using internal forecasts and a terminal growth rate thereafter considering the life of intangibles being approx. 10 years. The management has considered ten year growth rate since the same appropriately reflects the period over which the future benefits of the intangibles will accrue to the Company.

Based on the assessment carried out as at March 31, 2024 and after considering performance for the full year ended March 31, 2024, adequate provision is made. Hence, no further provision is required to be made.

During the previous year, an impairment charge of ₹ 398.8 million was recognised.

56. Foreign Currency Translation Reserve

Foreign Currency Translation Reserve represents the net exchange difference on translation of net investment in foreign operations located at Australia, Germany, South Africa, Philippines, Mexico, Switzerland, Brazil, USA, Netherlands, France, United Kingdom and Canada from their local currency to the Indian currency. Consequently, in accordance with the Indian Accounting Standard 21 (Ind AS 21) “The Effects of Changes in Foreign Exchange Rates”, the exchange rate difference on translation of ₹ 405.1 million (31.03.2023 ₹ 548.9 million) is credited during the year to such reserve.

57. European Commission Fine

As per best estimates of the management, provision has been made as under:

During the year ended 31.03.2019, the General Court of the European Union delivered its judgement concerning Lupin’s appeal against the European Commission’s (EC) 2014 decision in case of alleged breach of the EU Antitrust Rules in respect of IPs for product Perindopril. Accordingly, the Group is carrying a provision of ₹ 4,156.4 million (31.03.2023 ₹ 4,077.5 million) (including interest thereon) as under:

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Carrying amount at the beginning of the year	4,077.5 3,783.9
Add : Additional Provisions (interest) made during the year	58.5 56.1
Less : Amounts used / utilised during the year	- -
Add/(Less) : Exchange Difference duringtheyear	20.4 237.5
Carrying amount at the end of theyear	4,156.4 4,077.5

The Group has filed appeal against this judgment in the Court of Justice of the European Union.

58. Micro, Small and Medium Enterprises (MSME)

The information regarding Micro, Small and Medium Enterprises (MSME) has been determined to the extent such parties have been identified on the basis of information available with the Group. This has been relied upon by the auditors.

==> picture [486 x 176] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
i. The principal amount and the interest due thereon remaining unpaid to any supplier at the 806.2 763.3
end of each accounting year (Micro Enterprises and Small Enterprises) (interest ₹ nil) (interest ₹ nil)
ii. The amount of interest paid by the buyer in terms of Section 16 of the Micro, Small and
Medium Enterprises Development Act, 2006 along with the amount of the payment made to - -
the supplier beyond the appointed day during each accounting year
iii. The amount of interest due and payable for the period of delay in making payment but
without adding the interest specified under the Micro, Small and Medium Enterprises - -
Development Act, 2006
iv. The amount of interest accrued and remaining unpaid at the end of each accounting year - -
v. The amount of further interest remaining due and payable even in the succeeding years,
until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under Section 23 of the Micro, Small and - -
Medium Enterprises Development Act, 2006
----- End of picture text -----

350 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

59. Financial Instruments

Financial instruments – Fair values and risk management:

A. Accounting classification and fair values:

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value.

==> picture [486 x 362] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Carrying amount Fair value
As at 31.03.2024 Amortised
FVTPL FVTOCI Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Non-Current Investments 426.3 - 1,581.6 2,007.9 - 351.9 74.4 426.3
Non-Current Loans
- Others - - 35.7 35.7 - - - -
Other Non-Current Financial Assets
- Security Deposit - - 795.0 795.0 - - - -
- Others - - 399.4 399.4 - - - -
Current Investments 5,546.0 - 2,923.3 8,469.3 - 5,546.0 - 5,546.0
Trade Receivables - - 46,920.5 46,920.5 - - - -
Cash and Cash Equivalents - - 9,832.8 9,832.8 - - - -
Other Bank Balances including - - 2,192.6 2,192.6 - - - -
earmarked balances with banks
Current Loans
- Others - - 25.8 25.8 - - - -
Other Current Financial Assets
- Security Deposit - - 223.0 223.0 - - - -
- Others - - 6,161.9 6,161.9 - - - -
5,972.3 - 71,091.6 77,063.9 - 5,897.9 74.4 5,972.3
Financial liabilities
Lease Liability (Non-Current) - - 1,552.8 1,552.8 - - - -
Other Non-Current Financial Liabilities
- Others - - 1,562.8 1,562.8 - - - -
Current Borrowings - - 26,699.1 26,699.1 - - - -
Lease Liability (Current) - - 965.8 965.8 - - - -
Trade Payables - - 29,581.1 29,581.1 - - - -
Other Current Financial Liabilities
- Derivative instruments 0.1 - - 0.1 - 0.1 - 0.1
- Others - - 6,789.1 6,789.1 - - - -
0.1 - 67,150.7 67,150.8 - 0.1 - 0.1
----- End of picture text -----*

Corporate Overview Statutory Reports Financial Statements 351

Notes

Forming part of the Consolidated Financial Statements

==> picture [486 x 407] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Carrying amount Fair value
As at 31.03.2023 Amortised
FVTPL FVTOCI Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Non-Current Investments 470.6 - - 470.6 - 406.3 64.3 470.6
Non-Current Loans
- Others - - 40.4 40.4 - - - -
Other Non-Current Financial Assets
- Derivative instruments - - - - - - - -
- Security Deposit - - 810.3 810.3 - - - -
- Others - - 176.8 176.8 - - - -
Current Investments 4,397.7 - - 4,397.7 - 4,397.7 - 4,397.7
Trade Receivables - - 44,807.0 44,807.0 - - - -
Cash and Cash Equivalents - - 12,318.1 12,318.1 - - - -
Other Bank Balances including - - 613.2 613.2 - - - -
earmarked balances with banks
Current Loans
- Others - - 21.2 21.2 - - - -
Other Current Financial Assets
- Derivative instruments - - - - - - - -
- Security Deposit - - 64.9 64.9 - - - -
- Others - - 5,496.0 5,496.0 - - - -
4,868.3 - 64,347.9 69,216.2 - 4,804.0 64.3 4,868.3
Financial liabilities
Non-Current Borrowings - - 275.1 275.1 - - - -
Lease Liability (Non-Current) - - 1,863.9 1,863.9 - - - -
Other Non-Current Financial Liabilities
- Derivative instruments - - - - - - - -
- Others - - 2,013.6 2,013.6 - - - -
Current Borrowings - - 42,165.4 42,165.4 - - - -
Lease Liability (Current) - - 1,110.8 1,110.8 - - - -
Trade Payables - - 25,315.3 25,315.3 - - - -
Other Current Financial Liabilities
- Derivative instruments 153.6 52.7 - 206.3 - 206.3 - 206.3
- Others - - 5,746.1 5,746.1 - - - -
153.6 52.7 78,490.2 78,696.5 - 206.3 - 206.3
----- End of picture text -----*

*These are for operation purposes and the Group expects its refund on exit. The Group estimates that the fair value of these investments are not materially different as compared to its cost.

B. Measurement of fair values:

Valuation techniques and significant unobservable inputs:

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values, for financial instruments measured at fair value in the statement of financial position, as well as the significant unobservable inputs used.

Type	Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement
	Forward pricing: The fair value is determined using
Derivative instruments	quoted forward exchange rates at the reporting date and present value calculations based on high credit	Not applicable	Not applicable
	quality yield curves in the respective currency.
Non-current financial assets and liabilities	Discounted cash flows: The valuation model considers the present value of expected receipt/payment discounted usingappropriate discountingrates.	Not applicable	Not applicable

352 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

C. Financial risk management:

The Group has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk; and

• Market risk

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports to the board of directors on its activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Company, through its training, standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

i. Credit risk:

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Group grants credit terms in the normal course of business. The Group establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

Trade receivables

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment.

As at 31.03.2024, the carrying amount of the Group’s largest customer (a wholesaler based in North America) was ₹ 3,412.9 million (31.03.2023 ₹ 3,354.8 million)

Summary of the Group’s exposure to credit risk by age of the outstanding from various customers is as follows:

==> picture [486 x 147] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Not past due but impaired 12.4 -
Neither past due not impaired 40,705.8 38,110.5
Past due not impaired
- 1-180 days 5,884.9 5,997.5
- 181- 365 days 477.8 454.8
- more than 365 days 434.9 434.2
Past due impaired
- 1-180 days 91.0 59.5
- 181- 365 days 46.1 26.6
- more than 365 days 304.6 214.7
Total 47,957.5 45,297.8
----- End of picture text -----

Expected Credit Loss ageing

Expected Credit Loss ageing
Ageing of ECL (in days)	(₹ in million) As at 31.03.2024 As at 31.03.2023
1- 180	369.2 93.5
181- 365	95.4 96.5
More than 365 days	118.3 -
Expected Credit Loss	582.9 190.0
Add: Past Due Impaired	441.7 300.8
Add: Not Past Due but Impaired	12.4 -
Total Expected Credit Loss	1,037.0 490.8

Corporate Overview Statutory Reports Financial Statements 353

Notes

Forming part of the Consolidated Financial Statements

Expected credit loss assessment

The Group allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Group to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Group have not undergone any substantial change, the Group expects the historical trend of minimal credit losses to continue.

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Balance as at the beginning of the year	490.8 445.9
Impairment loss recognised (net)	653.5 79.5
Amounts written off	(126.3) (47.7)
Exchange differences	19.0 13.1
Balance as at theyear end	1,037.0 490.8

Cash and cash equivalents

As at the year end, the Group held cash and cash equivalents of ₹ 9,832.8 million (31.03.2023 ₹ 12,318.1 million). The cash and cash equivalents are held with banks.

Other Bank Balances

Other bank balances are held with banks.

Derivatives

The derivatives are entered into with banks.

Investment in Mutual funds, Non-Convertible debentures and Commercial papers

The Group limits its exposure to credit risk by generally investing in liquid securities, Non-Convertible debentures and Commercial papers only with counterparties that have a good credit rating. The Group does not expect any losses from non-performance by these counter parties.

Other financial assets

Other financial assets are neither past due nor impaired.

ii. Liquidity risk:

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

The Group has obtained fund and non-fund based working capital lines from various banks. The Group invests its surplus funds in bank fixed deposit and liquid and liquid plus schemes of mutual funds, non-convertible debentures, commercial papers which carry no/low mark to market risks. The Group monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

As at 31.03.2024 Carrying Amount	(₹ in million) Contractual Cash flows
	Total 0-12 months 1-2 years 2-5 years More than 5 years
Non-derivative financial liabilities:
Non-Current Borrowings -	-
Lease Liabilities - Non Current 1,552.8	3,153.3 - 651.8 929.0 1,572.5
Other Non-Current Financial Liabilities 1,562.8	1,721.3 - 1,495.3 184.5 41.5
Current Borrowings 26,699.1	26,699.1 26,699.1 - - -
Lease Liabilities - Current 965.8	1,075.2 1,075.2 - - -
Trade Payables - Current 29,581.1	29,581.1 29,581.1 - - -
Other Current Financial Liabilities 6,789.1	6,789.1 6,789.1 - - -
Derivative financial liabilities:
Forward Contracts 0.1	0.1 0.1 - - -
Total 67,150.8	69,019.2 64,144.6 2,147.1 1,113.6 1,614.0

354 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

As at 31.03.2023 Carrying Amount	(₹ in million) Contractual Cash flows
	Total 0-12 months 1-2 years 2-5 years More than 5 years
Non-derivative financial liabilities:
Non-Current Borrowings 275.1	275.1 - 275.1 - -
Lease Liabilities - Non Current 1,863.9	3,471.5 - 799.0 909.1 1,763.4
Other Non-Current Financial Liabilities 2,013.6	2,013.3 - 1,820.6 192.7 -
Current Borrowings 42,165.4	42,165.4 42,165.4 - - -
Lease Liabilities - Current 1,110.8	1,244.0 1,244.0 - - -
Trade Payables - Current 25,315.3	25,315.3 25,315.3 - - -
Other Current Financial Liabilities 5,746.1	5,746.1 5,746.1 - - -
Derivative financial liabilities:
Forward Contracts 206.3	206.3 206.3 - - -
Total 78,696.5	80,437.0 74,677.1 2,894.7 1,101.8 1,763.4

iii. Market risk:

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk. Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs. The Group uses derivatives to manage market risk. Generally, the Group seeks to apply hedge accounting to manage volatility in profit or loss.

Currency risk

The Group is exposed to currency risk on account of its operations in other countries. The functional currency of the Group is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent periods and may continue to fluctuate in the future. Consequently, the Group uses both derivative instruments, i.e., foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognized assets and liabilities.

The Group enters into foreign currency forward contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables/ receivables.

The Group also enters into derivative contracts in order to hedge and manage its foreign currency exposures towards future export earnings. Such derivatives contracts are entered into by the Group for hedging purposes only and are accordingly classified as cash flow hedge.

Following is the derivative financial instruments to hedge the foreign exchange rate risk:

					(Amount	in million)
Category	Instrument	Currency	Cross Currency	As at 31.03.2024	As at 31.03.2023	Buy/Sell
Hedges of highly probable forecasted transactions	Forward contract	USD	INR	Nil	USD 72.0	Sell

The Group has not entered foreign currency forward contract for purposes other than hedging.

Exposure to Currency risk

Following is the currency risk exposure of non-derivative financial assets and financial liabilities:

Particulars	(₹ in million) As at 31.03.2024
	USD EURO GBP JPY Others
Financial assets
Cash and cash equivalents	109.5 258.5 - - 34.2
Trade Receivables	29,714.1 1,345.9 1,062.9 193.4 3,266.9
Loans (current and non-current)	- - 841.7 - -
Financial assets (current and non-current)	- - 3.6 7.6 4.5
	29,823.7 1,604.4 1,908.1 201.0 3,305.6
Financial liabilities
Borrowings (current and non-current)	- - - - -
Trade Payables	7,451.4 1,641.1 683.9 4.7 533.4
Financial Liabilities (current and non-current)	1,063.9 5,288.5 - - 102.3
	8,515.3 6,929.6 683.9 4.7 635.7
Net statement of financialposition exposure	21,308.4 (5,325.2) 1,224.2 196.3 2,669.9

Corporate Overview Statutory Reports Financial Statements 355

Notes

Forming part of the Consolidated Financial Statements

Particulars	(₹ in million) As at 31.03.2023
	USD EURO GBP JPY Others
Financial assets
Cash and cash equivalents	171.6 121.7 1.1 - 28.9
Trade Receivables	18,585.2 1,164.3 775.3 317.8 2,342.6
Loans (current and non-current)	- - 813.2 - -
Financial assets(current and non-current)	12.5 92.1 - - 0.1
	18,769.3 1,378.1 1,589.6 317.8 2,371.6
Financial liabilities
Borrowings (current and non-current)	3,697.7 - - - -
Trade Payables	4,187.5 1,098.0 189.5 53.5 301.9
Financial Liabilities(current and non-current)	330.5 0.1 6.1 - 73.5
	8,215.7 1,098.1 195.6 53.5 375.4
Net statement of financialposition exposure	10,553.6 280.0 1,394.0 264.3 1,996.2

Sensitivity analysis

A reasonably possible strengthening/(weakening) of the Indian Rupee against foreign currency at March 31 would have affected the measurement of financial instruments denominated in foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

(₹ in million)	(₹ in million)	(₹ in million)
31.03.2024	Impact on Profit or(loss)	Equity, net of tax*
5% movement	Strengthening Weakening	Strengthening Weakening
USD	(1,061.4) 1,061.4	(690.5) 690.5
EURO	268.9 (268.9)	174.9 (174.9)
GBP	(61.2) 61.2	(39.8) 39.8
JPY	(9.8) 9.8	(6.4) 6.4
Others	(133.5) 133.5	(86.8) 86.8
	(997.0) 997.0	(648.6) 648.6

(₹ in million)	(₹ in million)	(₹ in million)
31.03.2023	Impact on Profit or(loss)	Equity, net of tax*
5% movement	Strengthening Weakening	Strengthening Weakening
USD	(123.7) 123.7	(80.5) 80.5
EURO	(7.9) 7.9	(5.1) 5.1
GBP	(69.7) 69.7	(45.3) 45.3
JPY	(13.2) 13.2	(8.6) 8.6
Others	(99.8) 99.8	(64.9) 64.9
	(314.3) 314.3	(204.4) 204.4

*including other comprehensive income

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

The Group’s interest rate risk arises from borrowings. The interest rate profile of the Group’s interest-bearing borrowings is as follows:

==> picture [486 x 124] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Non-Current Borrowings
Fixed rate borrowings - -
Variable rate borrowings - 275.1
- 275.1
Current Borrowings
Fixed rate borrowings - 5,350.0
Variable rate borrowings 26,699.1 36,815.4
26,699.1 42,165.4
Total 26,699.1 42,440.5
----- End of picture text -----

356 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

Fair value sensitivity analysis for fixed-rate instruments

The Group does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.

remain constant.
Particulars	(₹ in million) Profit or (loss)
	100 bp increase 100 bp decrease
Cash flow sensitivity (net)
31.03.2024
Fixed rate borrowings	- -
Variable rate borrowings	(267.0) 267.0
31.03.2023
Fixed rate borrowings	(53.5) 53.5
Variable rate borrowings	(370.9) 370.9

The risk estimates provided assume a change of 100 basis points interest rate for the interest rate benchmark as applicable to the borrowings summarised above. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

Commodity rate risk

The Group’s operating activities involve purchase and sale of Active Pharmaceutical Ingredients (API), whose prices are exposed to the risk of fluctuation over short periods of time. Commodity price risk exposure is evaluated and managed through procurement and other related operating policies. As of 31.03.2024 and 31.03.2023 the Group had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.

60. Capital Management

The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The board of directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position.

The Group monitors capital using a ratio of ‘adjusted net debt’ to ‘total equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents, other bank balances and current investments.

The Group’s policy is to keep the ratio below 1.5. The Group’s adjusted net debt to total equity ratio was as follows:

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Total borrowings	26,699.1 42,440.5
Less: Cash and cash equivalent	9,832.8 12,318.1
Less: Other Bank Balances*	2,285.6 790.0
Less: Current Investments	8,469.3 4,397.7
Adjusted net debt	6,111.4 24,934.7
Total equity	142,902.9 124,645.0
Adjusted net debt to total equityratio	0.04 0.20

*includes earmarked bank deposits against guarantees & other commitments of ₹ 93.0 million (31.03.2023 ₹ 176.8 million) classified as Other non-current financial assets.

Corporate Overview Statutory Reports Financial Statements 357

Notes

Forming part of the Consolidated Financial Statements

61. Hedge Accounting

The Group’s risk management policy is to hedge above 15% of its estimated net foreign currency exposure in respect of highly probable forecast sales over the following 12-24 months at any point in time. The Group uses forward exchange contracts to hedge its currency risk. Such contracts are generally designated as cash flow hedges.

The forward exchange forward contracts are denominated in the same currency as the highly probable forecast sales, therefore the hedge ratio is 1:1. These contracts have a maturity of 12-24 months from the reporting date. The Group’s policy is for the critical terms of the forward exchange contracts to align with the hedged item.

The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency, amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging relationship is expected to be and has been effective in offsetting changes in the cash flows of the hedged item using the hypothetical derivative method.

In these hedge relationships, changes in timing of the hedged transactions is the main source of hedge ineffectiveness.

a) Disclosure of effects of hedge accounting on financial position

(₹ in million)

As at 31.03.2024

Type of hedge and risks	Nominal Value (in million)	Contractual Cash flows	Contractual Cash flows	Line item in the statement of financial position where the hedging instrument is included	Maturity date	Hedge ratio	Weighted Average strike price/rate	Changes in fair value of the hedging instrument	Change in the value of hedged item used as the basis for recognizing hedge effectiveness
		Assets	Liabilities
Cash flow hedge: Forward exchange forward contracts	-	-	-	NA	NA	NA	-	-	-
Fair value hedge:
Forward exchange forward contracts	Euro 0.58				15thApril		91.1	0.1	(0.1)
Forward exchange forward contracts	GBP 0.02	-	0.1	Other Current Financials Liabilities	2024 - 12thJuly	1:1	107.6
Forward exchange forward contracts	USD 0.96				2024		83.8

(₹ in million)

As at 31.03.2023

As at 31.03.2023									(₹ in million)
Type of hedge and risks	Nominal Value (in million)	Contractual Cash flows		Line item in the statement of financial position where the hedging instrument is included	Maturity date	Hedge ratio	Weighted Average strike price/ rate	Changes in fair value of the hedging instrument	Change in the value of hedged item used as the basis for recognizing hedge effectiveness
		Assets	Liabilities
Cash flow hedge: Forward exchange forward contracts	USD 72.0	-	52.7	Other current financials Liabilities	April 2023 - March 2024	1:1	82.4	54.9	52.9
Fair value hedge:
Forward exchange forward contracts	USD 0.75	-	2.4	Other current financials Liabilities	April 2023 - June 2023	1:1	90.7	2.4	2.4
Forward exchange forward contracts	Euro 1.37	-	16	Other current fiil	14thApril 2023 - 26th	11	90.2	1.6	(1.6)
Forward exchange forward contracts	USD 0.6		.	nancas liabilities	April 2023	:	82.4
Forward exchange forward contracts	USD 25.0	-	149.6	Other current financials liabilities	September 2023 - March 2024	1:1	86.1	149.6	149.6

358 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

• b) Disclosure of effects of hedge accounting on financial performance

					(₹ in million)
As at 31.03.2024	Change in the value of the hedging instrument recognised in OCI	Hedge ineffectiveness recognised in profit or (loss)	Line item in the statement of profit or loss that includes the hedge ineffectiveness	Amount reclassified from cash flow hedging reserve to profit or (loss)	Line item affected in statement of profit or loss because of the reclassification
			Net (gain)/ loss on		Revenue from
Cash flow hedge	25.9	2.3	Foreign Currency	51.8	operations - Sale of
			Transactions		goods
					(₹ in million)
As at 31.03.2023	Change in the value of the hedging instrument recognised in OCI	Hedge ineffectiveness recognised in profit or (loss)	Line item in the statement of profit or loss that includes the hedge ineffectiveness	Amount reclassified from cash flow hedging reserve to profit or (loss)	Line item affected in statement of profit or loss because of the reclassification
Cash flow hedge	(499.1)	(1.2)	Net (gain)/ loss on Foreign Currency	(27.2)	Revenue from operations - Sale of
			Transactions		goods

• c) The following table provides a reconciliation by risk category of components of equity and analysis of OCI items, net of tax, resulting from cash flow hedge accounting:

==> picture [486 x 119] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Movements in cash flow hedging reserve
Balance as at 01.04.2022 350.1
Less : Changes in the fair value of effective portion of outstanding cash flow derivative (net of settlement) (499.1)
Add : Amounts re-classified to profit or loss 28.3
Add : Deferred tax 131.9
Balance as at 31.03.2023 11.2
Add : Changes in the fair value of effective portion of outstanding cash flow derivative (net of settlement) 25.9
Add : Amounts re-classified to profit or loss 103.2
Less: Deferred tax (39.2)
Balance as at 31.03.2024 101.1
----- End of picture text -----

62. Off-setting or Similar Agreements

The recognised financial instruments that are offset in balance sheet:

	(₹ in million)	(₹ in million)	(₹ in million)	(₹ in million)	(₹ in million)
As at 31.03.2024	Effects of offsetting on the balance sheet			Amounts subject to master netting
	Gross Amounts	Gross amounts set off in the balance sheet	Net amounts presented in the balance sheet	Related amounts not offset	Net amount
Financial assets
Derivative instruments - forward contracts	-	-	-	-	-
Trade and other receivables	39,034.3	(12,622.0)	26,412.4	-	-
Financial liabilities					-
Derivative instruments - forward contracts Trade and otherpayables	- (12,622.0)	- 12,622.0	- -	- -	- -

	(₹ in million)	(₹ in million)
As at 31.03.2023	Effects of offsetting on the balance sheet	Amounts subject to master netting
	Gross Amounts Gross amounts set off in the balance sheet Net amounts presented in the balance sheet	Related amounts not offset Net amount
Financial assets
Derivative instruments - forward contracts	- - -	- -
Trade and other receivables	37,126.9 (11,223.4) 25,903.5	- -
Financial liabilities
Derivative instruments - forward contracts Trade and otherpayables	206.3 - 206.3 (11,223.4) 11,223.4 -	- 206.3 - -

Corporate Overview Statutory Reports Financial Statements 359

Notes

Forming part of the Consolidated Financial Statements

Offsetting arrangements

i) Trade receivables and payables

• The Company has certain customers which are also supplying materials. The Group also gives rebates and discount to customers.

• ii) Derivatives

• The Company enters into derivative contracts for hedging future sales. In general, under such agreements, the amounts owed by each counterparty on a single day in respect of all the transactions outstanding in the same currency are aggregated into a single net amount that is payable by one party to the other.

63. Additional information as required by Part III of the General Instructions for Preparation of Consolidated Financial Statements to Schedule III to the Companies Act, 2013.

==> picture [486 x 508] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 Year ended March 31, 2024
Net assets, i.e., total Share of Total
assets minus total Share of Profit/(Loss) Share of Other Comprehensive Comprehensive Income/
Particulars liabilities Income/(Loss) (Loss)
As % of
As % of As % of As % of total
consolidated other
consolidated ₹ in million consolidated ₹ in million ₹ in million comprehensive ₹ in million
net assets profit comprehensive income income
Parent
Lupin Limited 143.3 206,030.9 121.5 23,260.9 (11.5) (46.9) 118.7 23,214.0
Indian Subsidiaries
Lupin Diagnostics Limited, India (0.7) (1,004.8) (5.2) (987.9) (0.1) (0.5) (5.1) (988.4)
Lupin Biologics Limited, India 0.0 0.1 (0.0) (0.1) - - (0.0) (0.1)
Lupin Foundation, India 0.0 0.1 (0.0) (0.1) - - (0.0) (0.1)
Lupin Digital Health Limited, India 0.4 556.8 (2.3) (434.3) - - (2.2) (434.3)
Lupin Manufacturing 5.2 7,427.2 (1.9) (365.1) (0.4) (1.6) (1.9) (366.7)
Solutions Limited, India
Lupin Life Sciences Limited, India 0.0 0.9 (0.0) (0.1) - - (0.0) (0.1)
Foreign Subsidiaries
Lupin Pharmaceuticals Inc., USA 6.6 9,531.8 (0.2) (37.9) 40.8 166.1 0.7 128.2
Hormosan Pharma GmbH,
1.8 2,571.8 2.3 441.1 4.7 19.3 2.4 460.4
Germany
Pharma Dynamics
(Proprietary) Limited, South 3.2 4,634.9 2.5 473.8 (47.7) (194.3) 1.4 279.5
Africa
Lupin Australia Pty Limited, Australia 0.0 3.8 (0.0) (0.4) - - (0.0) (0.4)
Nanomi B.V., Netherlands 55.2 79,345.7 (10.1) (1,931.9) 4.2 17.0 (9.8) (1,914.9)
Lupin Atlantis Holdings SA, Switzerland 28.9 41,550.2 (0.3) (60.7) 117.1 476.4 2.1 415.7
Multicare Pharmaceuticals
1.2 1,713.8 2.3 441.7 (15.4) (62.7) 1.9 379.0
Philippines Inc., Philippines
Lupin Healthcare (UK) (0.5) (789.5) 0.2 33.5 (6.1) (25.0) 0.0 8.5
Limited, UK
Lupin Pharma Canada 0.2 323.2 (0.2) (42.4) (1.7) (6.9) (0.3) (49.3)
Limited, Canada
Generic Health Pty Limited, Australia 2.5 3,545.3 3.3 627.3 (5.9) (24.0) 3.1 603.3
Lupin Mexico SA de C.V., 0.0 9.1 0.0 0.6 - - 0.0 0.6
Mexico
Lupin Philippines Inc., (0.0) (11.8) (0.6) (106.5) (4.1) (16.8) (0.6) (123.3)
Philippines
Generic Health SDN. BHD., 0.0 0.7 (0.0) (0.7) - - (0.0) (0.7)
Malaysia
Lupin Inc., USA (15.6) (22,489.7) 22.7 4,343.0 (125.4) (510.3) 19.6 3,832.7
Laboratorios Grin, S.A. de
2.4 3,423.4 (0.2) (32.0) 77.5 315.6 1.5 283.6
C.V., Mexico
Medquimica Industria (0.9) (1,237.8) (7.4) (1,415.2) (35.1) (142.7) (8.0) (1,557.9)
Farmaceutica LTDA, Brazil
Lupin Research Inc., USA 1.2 1,709.0 1.7 334.7 6.0 24.6 1.8 359.3
Lupin Europe GmbH, Germany 0.0 68.4 (0.1) (9.7) - - (0.0) (9.7)
----- End of picture text -----

360 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

Particulars	As at 31.03.2024	Year ended March 31, 2024	Year ended March 31, 2024	Year ended March 31, 2024
	Net assets, i.e., total assets minus total liabilities	Share of Profit/(Loss)	Share of Other Comprehensive Income/(Loss)	Share of Total Comprehensive Income/ (Loss)
	As % of consolidated net assets ₹ in million	As % of consolidated profit ₹ in million	As % of consolidated other comprehensive income ₹ in million	As % of total comprehensive income ₹ in million
Novel Laboratories Inc., USA	4.2 6,079.7	(1.0) (198.4)	22.2 90.5	(0.6) (107.9)
Lupin Oncology Inc., USA	(1.8) (2,534.8)	(4.3) (818.7)	(9.1) (37.0)	(4.4) (855.7)
Lupin Management Inc., USA	0.1 169.6	0.2 40.1	- -	0.2 40.1
Southern Cross Pharma Pty Ltd, Australia	1.1 1,520.5	1.9 365.7	(6.0) (24.6)	1.7 341.1
Avenue Coral Springs LLC, USA	- -	- -	- -	- -
Medisol S.A.S., France	0.9 1,356.5	(0.4) (73.7)	1.6 6.5	(0.3) (67.2)
Lymed S.A.S., France	0.0 3.1	(0.0) (0.4)	- -	(0.0) (0.4)
Non Controlling Interests in the Subsidiaries
Multicare Pharmaceuticals Philippines Inc., Philippines (0.6) (845.0)		(1.1) (216.4)	7.5 30.7	(0.9) (185.7)
Lupin Oncology Inc., USA 0.0 13.4		0.0 5.5	0.1 0.3	0.0 5.8
Foreign Joint Venture (to the extent of shareholding)
YL Biologics Ltd., Japan 0.2 269.1		- -	(7.8) (31.6)	(0.2) (31.6)
Total Eliminations/ Consolidation Adjustments (138.6) (199,211.2)		(23.5) (4,490.5)	94.6 384.9	(21.0) (4,105.6)
Total 100.0 143,734.5		100.0 19,144.8	100.0 407.0	100.0 19,551.8

The above amounts/percentage of net assets and net profit or (loss) in respect of Lupin Limited and its subsidiaries and a joint venture are determined based on the amounts of the respective entities included in consolidated financial statements before inter-company eliminations/consolidation adjustments.

Particulars	As at 31.03.2023	Year ended March 31, 2023	Year ended March 31, 2023	Year ended March 31, 2023
	Net assets, i.e., total assets minus total liabilities	Share of Profit/(Loss)	Share of Other Comprehensive Income/(Loss)	Share of Total Comprehensive Income/ (Loss)
	As % of consolidated net assets ₹ in million	As % of consolidated profit ₹ in million	As % of consolidated other comprehensive income ₹ in million	As % of total comprehensive income ₹ in million
Parent
Lupin Limited	146.8 184,118.6	98.9 4,252.1	(118.5) (239.2)	89.1 4,012.9
Indian Subsidiaries
Lupin Diagnostics Limited, India	(0.6) (723.1)	(17.0) (730.8)	(1.3) (2.7)	(16.3) (733.5)
Lupin Biologics Limited, India	0.0 0.2	(0.0) (0.1)	- -	(0.0) (0.1)
Lupin Foundation, India	0.0 0.2	(1.5) (65.1)	- -	(1.4) (65.1)
Lupin Digital Health Limited, India	0.4 481.7	(8.3) (357.8)	- -	(7.9) (357.8)
Foreign Subsidiaries
Lupin Pharmaceuticals Inc., USA	7.5 9,403.6	11.8 511.4	341.2 688.6	26.7 1,200.0
Hormosan Pharma GmbH, Germany 1.6 2,111.4		11.1 478.0	62.4 126.0	13.4 604.0
Pharma Dynamics (Proprietary) Limited, South Africa 3.5 4,355.4		14.2 612.3	(258.0) (520.6)	2.0 91.7
Lupin Australia Pty Limited, Australia - 4.3		- (0.7)	- -	- (0.7)
Nanomi B.V., Netherlands 63.4 79,562.5		(34.4) (1,480.8)	118.0 238.1	(27.6) (1,242.7)
Lupin Atlantis Holdings SA, Switzerland 32.7 41,134.5		(1.6) (69.4)	1,210.6 2,442.9	52.7 2,373.5
Multicare Pharmaceuticals Philippines Inc., Philippines 1.3 1,598.8		8.8 378.3	40.9 82.6	10.2 460.9

Corporate Overview Statutory Reports Financial Statements 361

Notes

Forming part of the Consolidated Financial Statements

==> picture [486 x 436] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2023 Year ended March 31, 2023
Net assets, i.e., total Share of Total
assets minus total Share of Profit/(Loss) Share of Other Comprehensive Comprehensive Income/
Particulars liabilities Income/(Loss) (Loss)
As % of
As % of As % of As % of total
consolidated other
consolidated ₹ in million consolidated ₹ in million ₹ in million comprehensive ₹ in million
net assets profit comprehensive income income
Lupin Healthcare (UK)
(0.6) (798.1) (0.6) (25.1) (11.8) (23.9) (1.1) (49.0)
Limited, UK
Lupin Pharma Canada 0.3 372.5 2.2 93.8 (2.1) (4.3) 2.0 89.5
Limited, Canada
Generic Health Pty Limited, Australia 2.3 2,942.5 24.4 1,048.7 (2.8) (5.6) 23.2 1,043.1
Lupin Mexico SA de 0.0 8.4 0.0 1.2 - - 0.0 1.2
C.V.,Mexico
Lupin Philippines Inc., 0.2 200.3 0.8 35.6 (1.0) (2.1) 0.8 33.5
Philippines
Generic Health SDN. BHD., 0.0 0.2 0.0 (0.6) - - (0.0) (0.6)
Malaysia
Lupin Inc., USA (21.0) (26,322.3) (27.9) (1,200.6) (1,748.5) (3,528.5) (105.0) (4,729.1)
Laboratorios Grin, S.A. de
2.5 3,139.7 9.5 411.2 247.5 499.5 20.2 910.7
C.V., Mexico
Medquimica Industria 0.3 320.1 (11.8) (509.2) 71.2 143.7 (8.1) (365.5)
Farmaceutica LTDA, Brazil
Lupin Research Inc., USA 1.1 1,349.7 2.2 95.5 46.2 93.3 4.2 188.8
Lupin Europe GmbH, 0.1 78.1 (0.9) (38.7) - - (0.9) (38.7)
Germany
Novel Laboratories Inc.,
USA 4.9 6,187.7 (11.9) (513.9) 249.1 502.6 (0.3) (11.3)
Lupin Oncology Inc, USA (1.3) (1,679.1) (30.8) (1,326.7) (42.0) (84.8) (31.3) (1,411.5)
Lupin Management Inc., 0.1 129.5 1.0 41.9 - - 0.9 41.9
USA
Southern Cross Pharma
1.2 1,450.7 5.7 248.6 (18.8) (37.9) 4.7 210.7
Pty Ltd, Australia
Non Controlling Interests
in the Subsidiaries
Multicare
Pharmaceuticals (0.6) (790.8) (4.3) (185.1) (20.1) (40.5) (5.0) (225.6)
Philippines Inc., Philippines
Lupin Oncology Inc., USA 0.0 7.6 0.2 9.0 0.0 0.1 0.2 9.1
Foreign Joint Venture
(to the extent of
shareholding)
- - - -
YL Biologics Ltd., Japan (1.3) (2.7) (0.1) (2.7)
Total Eliminations/
Consolidation (146.1) (183,216.6) 60.2 2,587.8 (60.9) (122.8) 54.7 2,465.0
Adjustments
Total 100.0 125,428.2 100.0 4,300.8 100.0 201.8 100.0 4,502.6
----- End of picture text -----

64. Related Party Disclosures as required by Ind AS 24 are given below

A) Relationships -

Category I: Entity having significant influence over the Company: Lupin Investments Pvt. Limited

Category II: Joint Venture:

YL Biologics Ltd., Japan

Category III: Key Management Personnel (KMP) :

Ms. Vinita Gupta Chief Executive Officer

Mr. Nilesh D. Gupta Managing Director Mr. Ramesh Swaminathan Executive Director, Global CFO & CRO and Head - Corporate Affairs Mr. R.V. Satam Company Secretary

Non-Executive Directors

Mrs. Manju D. Gupta Dr. Kamal K. Sharma (upto 13.10.2022)

Chairman Vice Chairman

362 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

Mr. Jean-Luc Belingard Ms. Christine Ann Mundkur (upto 31.12.2022) Mr. K. B. S, Anand

Dr. Punita Kumar Sinha Mr. Mark D. McDade

Category IV: Other related parties (Person / Entity with whom the Company had transactions during the year) :

Ms. Kavita Gupta (Daughter of Chairman)

Dr. Anuja Gupta (Daughter of Chairman) Dr. Richa Gupta (Daughter of Chairman)

Ms. Shefali Nath Gupta (Wife of Managing Director) Miss Veda Nilesh Gupta (Daughter of Managing Director) Master Neel Deshbandhu Gupta (Son of Managing Director) D. B. Gupta (HUF) Gupta Family Trust Lupin Human Welfare and Research Foundation Mata Shree Gomati Devi Jan Seva Nidhi Polynova Industries Limited Zyma Properties Pvt. Limited Shuban Prints S.N. Pharma Team Lease Services Limited

B) Transactions with the related parties:

==> picture [486 x 334] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Year ended Year ended
Transactions
No. 31.03.2024 31.03.2023
1 Sale of Assets
Others - 3.4
2 Rent Expenses
Others 11.2 20.1
3 Expenses incurred on their behalf Recovered/Rent Received
Others 1.7 1.8
4 Remuneration Paid
Key Management Personnel 424.6 245.9
5 Purchases of Goods/Materials
Others 136.2 154.2
6 Commission, Advisory Fees & Sitting Fees to Non-Executive Directors
Key Management Personnel 71.1 22.9
7 Donations Paid
Others 253.8 284.1
8 Dividend Paid
Entity having significant influence over the Company 828.8 828.8
Key Management Personnel 4.9 4.9
Others 23.1 23.7
9 Services Received (Expense)
Joint Venture 4.1 7.1
Others 88.4 74.9
10 Expenses incurred on our behalf & Others Reimbursements
Others 3.3 4.6
11 Advance against supplies paid
Others - 40.0
12 Refund of Deposit
Others - 21.6
----- End of picture text -----

Related party transactions above 1% of revenue from operations are disclosed separately

Corporate Overview Statutory Reports Financial Statements 363

Notes

Forming part of the Consolidated Financial Statements

Notes Forming part of the Consolidated Financial Statements Corporate Overview Statutory	ReportsFinancial Statements
Compensation paid to Key Management Personnel	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Short-term employee benefits	392.9 221.5
Post-employment benefits	22.0 13.1
Share basedpayments	9.8 11.3
Total	424.7 245.9

Expenses towards gratuity and leave encashment provisions are determined actuarially on an overall Group basis and accordingly have not been considered in the above information.

Terms and conditions of transactions with related parties:

All related party transactions entered during the year were in ordinary course of business, on arm’s length basis. Outstanding balances at the year-end are unsecured, interest free and settlement occurs in cash.

C) Balances due from/to the related parties:

==> picture [486 x 141] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Year ended Year ended
Transactions
No. 31.03.2024 31.03.2023
1 Deposits paid under Leave and License arrangement for premises
Others 7.4 7.4
2 Trade Receivables
Joint Venture 7.5 14.8
3 Trade Payables
Others 8.5 12.7
4 Advance against supplies paid
Others 30.5 35.0
5 Deposits received under Leave and License arrangement for premises
Others 0.1 0.1
----- End of picture text -----

Transactions and balances with Joint Venture have been reported at full value.

65. Non-Cash Changes in Cash Flows from Financing Activities

==> picture [486 x 308] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Non-Cash Changes
Particulars 01.04.2023 Cash flows Interest Foreign Fair Value 31.03.2024
Exchange
Expense Movement Changes
Non-current Borrowings
Secured
Term Loans from banks 275.1 (273.4) - (1.7) - -
Current Borrowings
Unsecured
Loans from banks 42,165.4 (15,896.2) 16.2 413.7 - 26,699.1
Lease liabilities (Refer Note 44) 2,974.7 (621.4) 180.2 (14.9) - 2,518.6
Total Liabilities from financing activities 45,415.2 (16,791.0) 196.4 397.1 - 29,217.7
(₹ in million)
Non-Cash Changes
Particulars 01.04.2022 Cash flows Interest Foreign Fair Value 31.03.2023
Exchange
Expense Movement Changes
Non-Current Borrowings
Secured
Term Loans from banks 1,418.6 (1,104.6) (38.9) - - 275.1
Current Borrowings
Secured
Loans from banks 2,566.2 (2,566.2) - - - -
Unsecured
Loans from banks 34,456.7 2,693.7 21.7 4,993.3 - 42,165.4
Lease liabilities (Refer Note 44) 3,142.2 (373.2) 205.7 - - 2,974.7
Total Liabilities from financing activities 41,583.7 (1,350.3) 188.5 4,993.3 - 45,415.2
----- End of picture text -----

364 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

66. The Group evaluates events or transactions that occur after the consolidated balance sheet date but prior to the issuance of consolidated financial statements and concluded that no material subsequent events have occurred through 06.05.2024 that require adjustment to or disclosure in the consolidated financial statements.

67. Trade Receivable Ageing

67.Trade Receivable Ageing
Particulars	(₹ in million) Outstanding for following periods from due date of payment Total as at 31.03.2024 Not due Less than 6 months 6 months - 1 year 1-2 years 2-3 years More than 3 years
		Total as at 31.03.2024
	Not due Less than 6 months 6 months - 1 year 1-2 years 2-3 years More than 3 years
(i) Undisputed Trade receivables – considered good	40,705.8 5,884.9 477.8 149.4 277.7 7.8	47,503.4
(ii) Undisputed Trade Receivables – which have significant increase in credit risk	- - - - - -	-
(iii) Undisputed Trade Receivables – credit impaired	12.4 91.0 46.1 141.4 56.0 107.2	454.1
(iv) Disputed Trade Receivables– considered good	- - - - - -	-
(v) Disputed Trade Receivables – which have significant increase in credit risk	- - - - - -	-
(vi) Disputed Trade Receivables – credit impaired	- - - - - -	-
	40,718.2 5,975.9 523.9 290.8 333.7 115.0	47,957.5
Less: Allowance for credit loss		1,037.0
Total		46,920.5

Total	46,920.5
Particulars	(₹ in million) Outstanding for following periods from due date of payment Total as at 31.03.2023 Not due Less than 6 months 6 months - 1 year 1-2 years 2-3 years More than 3 years
(i) Undisputed Trade receivables – considered good	38,110.5 5,997.5 454.8 326.4 35.6 72.2 44,997.0
(ii) Undisputed Trade Receivables – which have significant increase in credit risk	- - - - - - -
(iii) Undisputed Trade Receivables – credit impaired	- 59.5 26.6 62.5 69.8 82.4 300.8
(iv) Disputed Trade Receivables– considered good	- - - - - - -
(v) Disputed Trade Receivables – which have significant increase in credit risk	- - - - - - -
(vi) Disputed Trade Receivables – credit impaired	- - - - - - -
	38,110.5 6,057.0 481.4 388.9 105.4 154.6 45,297.8
Less: Allowance for credit loss	490.8
Total	44,807.0

68. Trade Payable Ageing

68.Trade Payable Ageing
Particulars	Outstanding for following periods from due date of payment	(₹ in million)
		Total as at 31.03.2024
	Not due Less than 1 year 1-2 years 2-3 years More than 3 years
Outstanding dues of Micro and Small Enterprises	782.9 23.3 - - -	806.2
Outstanding dues of other than Micro and Small Enterprises	14,619.8 3,226.2 192.7 34.4 85.1	18,158.2
Disputed - Outstanding dues of Micro and Small Enterprises	- - - - -	-
Disputed - Outstanding dues of other than Micro and Small Enterprises	123.1 3.2 - - 2.3	128.6
	15,525.8 3,252.7 192.7 34.4 87.4	19,093.0
Add: Accrued Expenses		10,488.1
Total		29,581.1

Corporate Overview Statutory Reports Financial Statements 365

Notes

Forming part of the Consolidated Financial Statements

Particulars	(₹ in million) Outstanding for following periods from due date of payment Total as at 31.03.2023 Not due Less than 1 year 1-2 years 2-3 years More than 3 years
Outstanding dues of Micro and Small Enterprises	759.5 3.8 - - - 763.3
Outstanding dues of other than Micro and Small Enterprises	7,870.7 4,167.6 1,026.6 208.0 112.7 13,385.6
Disputed - Outstanding dues of Micro and Small Enterprises	- - - - - -
Disputed - Outstanding dues of other than Micro and Small Enterprises	- - - - 2.3 2.3
	8,630.2 4,171.4 1,026.6 208.0 115.0 14,151.2
Add: Accrued Expenses	11,164.1
Total	25,315.3

69. Capital Work-In-Progress (CWIP)

a) Capital Work-In-Progress (CWIP) ageing

69.Capital Work-In-Progress (CWIP) a) Capital Work-In-Progress (CWIP) ageing
Particulars	Amount in CWIP for a period of	(₹ in million)
		Total as at 31.03.2024
	Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress	2,601.6 564.5 1,238.8 1,551.8	5,956.7
Projects temporarilysuspended	- - - -	-
Total	2,601.6 564.5 1,238.8 1,551.8	5,956.7

Projects temporarilysuspended Total	- - - - - 2,601.6 564.5 1,238.8 1,551.8 5,956.7
Particulars	(₹ in million) Amount in CWIP for a period of Total as at 31.03.2023 Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress	2,285.4 2,709.5 598.7 3,354.6 8,948.2
Projects temporarilysuspended	- - - - -
Total	2,285.4 2,709.5 598.7 3,354.6 8,948.2

• b) Capital work-in-progress, where completion is overdue or cost has exceeded as compared to its original plans There are no CWIP where completion is overdue or cost has exceeded as compared to its original plans as on 31.03.2024 and 31.03.2023, excluding amount of ₹ 1,139.7 million related to one project which was likely to be commissioned in FY 2023-24 but has been delayed due to covid pandemic and the project is expected to be capitalised in FY 2024-25.

70. Intangible Assets Under Development (IAUD)

a) Intangible Assets Under Development (IAUD) ageing

Particulars	Amount in IAUD for a period of	(₹ in million)
		Total as at 31.03.2024
	Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress	205.7 427.1 334.7 801.1	1,768.6
Projects temporarilysuspended	- - - -	-
Total	205.7 427.1 334.7 801.1	1,768.6
Particulars	Amount in IAUD for a period of	(₹ in million) Total as at 31.03.2023
	Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress	734.1 425.8 805.1 1,466.7	3,431.7
Projects temporarilysuspended	- - - -	-
Total	734.1 425.8 805.1 1,466.7	3,431.7

366 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Consolidated Financial Statements

b) Intangible Assets Under Development (IAUD), where completion is overdue or cost has exceeded as compared to its original plans

There are no IAUD where completion is overdue or cost has exceeded as compared to its original plans as on 31.03.2024 and 31.03.2023.

71. Financial Ratios

==> picture [486 x 551] intentionally omitted <==

----- Start of picture text -----

% of Reason for
Ratios Numerator Denominator 31.03.2024 31.03.2023
variances Variances
Total Current
Current ratio Total Current Asset 1.58 1.34 17.91
Liabilities
Debt-Equity ratio Total Debt= Non Current Borrowings+ Total Equity Attributable to 0.19 0.34 (44.12) Reduction in
Current Borrowings owners borrowings
Earnings available for Debt Service = Net Profit after taxes before OCI + Debt service (Debt Increase in
Debt service Non-cash operating expenses like service =Interest & Lease Payments 1.79 3.82 (53.14) profit due to higher sales
coverage ratio depreciation and other amortizations - + Principal and reduction
Unrealised gain + Interest + loss on sale Repayments) in borrowings
of Property, plant and equipment
Average
Shareholder’s Increase in
Equity = (Opening profit due to
Return on Equity ratio (ROE) Net profits after taxes shareholder's 0.14 0.03 366.67 higher sale
Equity + Closing and improved
shareholder's margins
Equity)/2
Cost of Goods Sold =Cost of Materials Average Inventory
Consumed +Purchases of Stock-in- = (Opening
Inventory turnover ratio Trade +Changes in Inventories of Inventory 1.41 1.49 (5.37)
Finished Goods/Work in Progress/ + Closing
Stock-in-Trade Inventory)/2
Trade receivables Total sales Closing Trade 4.19 3.63 15.43
turnover ratio receivable
Trade payables turnover ratio Total Purchases Closing Trade Payables 2.57 2.80 (8.21)
Working Capital
Net capital turnover ratio Net sales = current assets - 3.97 5.11 (22.31)
current liabilities
Increase in
Revenue from profit due to
Net Profit ratio (in%) Net Profit after Tax 10.00% 3.00% 233.33 higher sale
Operations
and improved
margins
Capital Increase in
Employed=
profit due to
Return on Capital Employed (ROCE) Earnings before interest and taxes Tangible Net Worth + Total Debt 0.21 0.08 162.50 higher sale
+ Deferred Tax and improved
Liability (net) margins
Gross Profit ratio Gross Profit = Net sales - Cost of
Net sales 66.00% 58.00% 13.79
(in %) Materials
Increase in
profit due to
EBITDA ratio (in %) EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) Net sales 20.00% 11.50% 73.91 higher sale
and improved
margins
Return on
Investment (ROI)
Increase due
to Improved
return on
1) Mutual Fund Income generated from investment (A) Average 0.07 0.02 250.00 investment
Investment (B)
where surplus
funds have
been invested
2) Financial Institution (CD) Income generated from investment (A) Weighted Average Investment (B) - 0.05 (100.00) Reduction in investments
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 367

Notes

Forming part of the Consolidated Financial Statements

==> picture [486 x 141] intentionally omitted <==

----- Start of picture text -----

% of Reason for
Ratios Numerator Denominator 31.03.2024 31.03.2023
variances Variances
Increase due
to Improved
3) Commercial Income generated from investment (A) Weighted Average 0.07 0.04 75.00 return on investment
Paper Investment (B)
where surplus
funds have
been invested
Increase due
to Improved
4) Non return on
Convertible Income generated from investment (A) Weighted Average 0.08 0.05 60.00 investment
Debentures Investment (B) where surplus
funds have
been invested
----- End of picture text -----

72. Donations under Note 36 includes donations for political purposes

Pursuant to the Resolution passed at a meeting of the Board of Directors, donation includes amount of ₹ 250 million to Prudent Electoral Trust, which is within the limits specified by Section 182(1) of the Companies Act, 2013. The said amount is required to be distributed directly/indirectly by the Trust, to various eligible political parties (registered under Section 29A of the Representation of the People Act, 1951), as per the provisions of the Income Tax Act, 1961.

During the previous year, donations for political purpose amounting to ₹ 180 million were made through Electoral Bonds.

73. Other Statutory Information

• A) The Group has not entered into any transactions with Struck off Companies under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 for the year ended 31.03.2024 and 31.03.2023.

• B) The Group has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either severally or jointly with any other person. No trade or other receivable are due from directors either severally or jointly with any other person.

• C) The Group has not traded or invested in Crypto Currency or Virtual Currency.

• D) The Group does not have any transaction not recorded in the books of account that has been surrendered or not disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 for the year ended 31.03.2024 and 31.03.2023.

• E) The Group has complied with number of layers prescribed under clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

• F) The Group does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

• G) The Group has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

• H) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. However , the Company, as a part of its treasury operations, invests/advances loans to fund the operations of its subsidiaries which have further utilised these funds for their general corporate purposes/ working capital, etc. within the consolidated group of the Company and in the ordinary course of business. These transactions are done on an arms length basis following a due approval process.

In terms of our report attached For B S R & Co. LLP Chartered Accountants Firm Registration No. 101248W/W-100022

Sudhir Soni Partner Membership No.: 041870

For and on behalf of Board of Directors of Lupin Limited

Manju D. Gupta

Vinita Gupta

Chief Executive Officer DIN: 00058631 R. V. Satam Company Secretary ACS - 11973

Chairman DIN: 00209461 Ramesh Swaminathan Executive Director, Global CFO & CRO and Head - Corporate Affairs DIN: 01833346

Nilesh D. Gupta Managing Director DIN: 01734642

Place: Mumbai Dated: May 06, 2024

368 LUPIN LIMITED | Integrated Report 2023-2024

This page is intentionally left blank

Standalone Financial Statements

370 LUPIN LIMITED | Integrated Report 2023-2024

Independent Auditor’s Report To the Members of Lupin Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Lupin Limited (the “Company”) which comprise the standalone balance sheet as at 31 March 2024, and the standalone statement of profit and loss (including other comprehensive loss), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including material accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024, and its profit and other comprehensive loss, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements 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 Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

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

Revenue Recognition

Refer note 1B (m) of material accounting policies and note 28 to standalone financial statements

The key audit matter Revenue from the sale of pharmaceutical products is recognized when control over goods is transferred to a customer. The actual point in time when revenue is recognized varies depending on the specific terms and conditions of the sales contracts entered with customers. The Company has many customers operating in various geographies and sales contracts with customers have distinct terms relating to the recognition of revenue, the right of return and price adjustments.

How the matter was addressed in our audit To obtain sufficient appropriate audit evidence, our principal audit procedures, amongst others, include the following:

recognized varies depending on the specific terms and conditions of the sales contracts entered with customers. The Company has many customers operating in various geographies and sales contracts with customers have distinct terms relating to the recognition of revenue, the right of return and price adjustments.	• •	Compared the accounting policies in respect of revenue recognition with applicable accounting standards to test for compliance. Tested design, implementation and operating effectiveness of the Company’s internal controls including general IT controls and key IT application
We identified the recognition of revenue from sale of		controls over recognition of revenue.
products as a key audit matter considering:	•	Performed substantive testing of selected samples of
Revenue is a key performance indicator for the		revenue transactions recorded during the year.
Company. Accordingly, there could be pressure to meet the expectations of investors / other stakeholders and / or to meet revenue targets stipulated in performance	•	For a sample of year-end sales, we verified contractual terms of sales invoices / contracts, shipping documents and acknowledged
incentive schemes for a reporting period. We have		delivery receipts for those transactions including
considered that there is a risk of fraud related to revenue		management assessment and quantification of any
being overstated by recognition in the wrong period or		sales reversal for undelivered goods; and
before control has passed during the year and at period end.	•	Tested any unusual non-standard journal entries that impacted revenue recognized duringtheyear.

Corporate Overview Statutory Reports Financial Statements 371

Other Information

The Company’s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and auditor’s report thereon. The annual report is expected to be made available to us after the date of this auditor’s report.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the Company’s annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions, as applicable under the relevant laws and regulations.

Management’s and Board of Directors’ Responsibilities for the Standalone Financial Statements

The Company’s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit and other comprehensive loss, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 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 statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Management and 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 is also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

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

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

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability 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 standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date

372 LUPIN LIMITED | Integrated Report 2023-2024

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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. A. As required by Section 143(3) of the Act, we report that:

3. a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

4. b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books, except for the certain matters stated in the paragraph 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

5. c. The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive loss), the standalone statement of changes in equity and the standalone statement of

cash flows dealt with by this Report are in agreement with the books of account.

• d. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

• e. On the basis of the written representations received from the directors as on 31 March 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2024 from being appointed as a director in terms of Section 164(2) of the Act.

• f. the modification relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2A(b) above on reporting under Section 143(3)(b) and paragraph 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

• g. With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.

• B. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us.

• a. The Company has disclosed the impact of pending litigations as at 31 March 2024 on its financial position in its standalone financial statements - Refer Note 36 to the standalone financial statements.

• b. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts – Refer Note 53 to the standalone financial statements.

• c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

• d. (i) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the Note 68 to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded

Corporate Overview Statutory Reports Financial Statements 373

in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

• (ii) The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

• (iii) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.

• e. The final dividend paid by the Company during the year, in respect of the same declared for the previous year, is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.

As stated in Note 35 to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.

• f. Based on our examination which included test checks, except for the instances mentioned below, the Company has used accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software:

• i) The feature of recording audit trail (edit log) was not enabled at the database level to log any direct data changes for the accounting software used for maintaining the books of account.

• ii) In the absence of sufficient and appropriate reporting on compliance with the audit trail requirements in the independent auditor’s report of a service organization for an accounting software used for consolidation and lease transactions, we are unable to comment whether audit trail feature for the said software was enabled and operated throughout the year for all relevant transactions recorded in the software.

Further, for the periods where audit trail (edit log) facility was enabled and operated throughout the year, we did not come across any instance of the audit trail feature being tampered with during the course of the audit.

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

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

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.:101248W/W-100022

Sudhir Soni

Partner Membership No.: 41870 ICAI UDIN: 24041870BKGDKJ8343

Place: Mumbai Dated: May 06, 2024

374 LUPIN LIMITED | Integrated Report 2023-2024

Annexure A to the Independent Auditor’s Report on the Standalone Financial Statements of Lupin Limited for the year ended 31 March 2024

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

• (i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

certain property, plant and equipment were verified during the year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

• (B) The Company has maintained proper records showing full particulars of intangible assets.

• (c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties of land and building which are freehold , as disclosed in the standalone financial statements are held in the name of the Company, except for the following which are not held in the name of the Company:

• (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has a regular programme of physical verification of its Property, Plant and Equipment by which all property, plant and equipment are verified in a phased manner over a period of three years. In accordance with this programme,

(₹ in million) Reason for not being held in the name of the Company (Disputed)

					(₹ in million)
Description of	Gross	Held in the	Whether	Period held-	Reason for not being held in the name of the
property	carrying	name of	promoter, director	indicate	Company (Disputed)
	value		or their relative or	range, where
			employee	appropriate
Freehold land	29.6	Lupin	No	Since 2001	The title deeds are in the name of the erstwhile
located in		Laboratories			Company that was amalgamated with
Maharastra		Limited			the Company pursuant to the Scheme of
admeasuring 7					amalgamation sanctioned by the Hon’ble
hectare Freehold building located in Maharashtra admeasuring 8038 sq. ft.	133.9	Lupin Laboratories Limited	No	Since 2001	Bombay High Court order dated 13 June 2001 The title deeds are in the name of erstwhile Company that was amalgamated with the Company pursuant to the Scheme of amalgamation sanctioned by the Hon’ble Bombay High Court order dated 13 June 2001

In respect of immovable properties of land and buildings that have been taken on lease and disclosed in Note 64 to the standalone financial statements, the lease agreements are in the name of the Company, except the following:

					(₹ in million)
Description of	Gross	Held in the	Whether	Period held-	Reason for not being held in the name of the
property	carrying	name of	promoter, director	indicate	Company. Also indicate if in dispute
	value		or their relative or	range, where
			employee	appropriate
Leasehold building	2.8	Lupin	No	Since 2001	The lease is in the name of erstwhile Company
loacted in Delhi		Laboratories			that was amalgamated with the Company
admeasuring 1628		Limited			pursuant to the Scheme of amalgamation
sq. ft					sanctioned by the Hon’ble Bombay High Court
					order dated 13 June 2001

In respect of immovable properties of land and buildings which are disclosed as Property, Plant and Equipment in the standalone financial statements, the original documents for the following assets are not available for verification.

available for verification.
	(₹ in million)
Particulars of the land and building	Gross Block (as at 31 March 2024)
Building located in Maharashtra	7.5
Land located in Uttarakhand	0.3

Corporate Overview Statutory Reports Financial Statements 375

• (d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year.

• (e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no proceedings initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

• (ii) (a) The inventory, except goods-in-transit and stocks lying with third parties, has been physically verified by the management during the year. For stocks lying with third parties at the year-end, written confirmations have been obtained and for goods-in-transit subsequent evidence of receipts has been linked with inventory records. In our opinion, the frequency of such verification is reasonable and procedures and coverage as followed by management were appropriate. No discrepancies were noticed on verification between the physical stocks and the book records that were more than 10% in the aggregate of each class of inventory.

• (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets. In our opinion, the quarterly returns or statements filed by the Company with such banks or financial institutions are in agreement with the books of account of the Company.

• (iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not provided any security to companies, firms, limited liability partnership or any other parties during the year. The company has not made any investments in or provided any guarantees to firms, LLP’s or other parties and has not granted any loans and any advances in nature of loans to companies, firms or LLP’s. The Company has made investments in and provided guarantee to companies, and granted loans to other parties in respect of which the requisite information is as below:

• (a) Based on the audit procedures carried on by us and as per the information and explanations given to us, the Company has provided loans and provided guarantee on behalf of others as below:

		(₹ in million)
Particulars	Loans	Guarantees
Aggregate amount during the year
Subsidiaries Joint ventures Associates* Others - Employees	135.0 - - 35.7	5,032.9 - -
Balance outstanding as at balance sheet date Subsidiaries Joint ventures Associates* Others - Employees	- - - 36.1	40,120.9 - - -

*As per the Companies Act, 2013

• (b) According to the information and explanations given to us and based on the audit procedures conducted by us, in our opinion the investments made and the terms and conditions of the grant of loans and guarantees provided during the year are, prima facie, not prejudicial to the interest of the Company.

• (c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in the case of loans given, in our

opinion the repayment of principal and payment of interest has been stipulated and the repayments or receipts have been regular. Further, the Company has not given any advance in the nature of loan to any party during the year.

• (d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amount for more than ninety days in respect of loans given. Further, the Company has not given

376 LUPIN LIMITED | Integrated Report 2023-2024

any advances in the nature of loans to any party during the year.

• (e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no loan or advance in the nature of loan granted falling due during the year, which has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to same parties.

• (f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.

• (iv) According to the information and explanation given to us and on the basis of our examination of records of the Company, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 (“the Act”) in respect of the investments made and guarantees provided, as applicable. The Company has not granted any loans or provided any security to the parties covered under Section 185 and 186 of the Act.

• (v) The Company has not accepted any deposits or amounts which are deemed to be deposits from the public. Accordingly, clause 3(v) of the Order is not applicable.

• (vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under Section 148(1) of the Act in respect of its manufactured goods and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out a detailed examination of the records with a view to determine whether these are accurate or complete.

• (vii) (a) The Company does not have liability in respect of Service tax, Duty of excise, Sales tax and Value added tax during the year since effective 1 July 2017, these statutory dues has been subsumed into GST. According to the information and explanations given to us and on the basis of our examination of the records of the Company, in our opinion amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of Customs or Cess or other statutory dues have been regularly deposited by the Company with the appropriate authorities.

According to the information and explanations given to us and on the basis of our examination of the records of the Company, no undisputed amounts payable in respect of Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of Customs or Cess or other statutory dues were in arrears as at 31 March 2024 for a period of more than six months from the date they became payable.

• (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no dues of Provident fund, Employees state insurance, Income tax, Sales tax, Value added tax, Service tax, duty of Customs, Goods and Service tax, duty of Excise and Cess which have not been deposited with the appropriate authorities on account of any dispute other than those mentioned in Annexure I to this report.

• (viii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year.

• (ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not defaulted in repayment of loans and borrowing or in the payment of interest thereon to any lender.

• (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not been declared a wilful defaulter by any bank or financial institution or government or government authority.

• (c) According to the information and explanations given to us by the management, the Company has not obtained any term loans during the year. Accordingly, clause 3(ix)(c) of the Order is not applicable.

• (d) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for longterm purposes by the Company.

• (e) According to the information and explanations given to us and on an overall examination of the standalone financial statements of the Company, we report that the Company has not taken any funds

Corporate Overview Statutory Reports Financial Statements 377

from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures as defined under the Act.

• (f) According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies (as defined under the Act).

• (x) (a) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments). Accordingly, clause 3(x)(a) of the Order is not applicable.

• (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, clause 3(x)(b) of the Order is not applicable.

• (xi) (a) Based on examination of the books and records of the Company and according to the information and explanations given to us, considering the principles of materiality outlined in Standards on Auditing, we report that no fraud by the Company or on the Company has been noticed or reported during the course of the audit.

• (b) According to the information and explanations given to us, no report under sub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government.

• (c) We have taken into consideration the whistle blower complaints received by the Company during the year while determining the nature, timing and extent of our audit procedures.

• (xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.

• (xiii) In our opinion and according to the information and explanations given to us, the transactions with related parties are in compliance with Section 177 and 188 of the Act, where applicable, and the details of the related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

• (xiv) (a) Based on information and explanations provided to us and our audit procedures, in our opinion, the Company has an internal

audit system commensurate with the size and nature of its business.

• (b) We have considered the internal audit reports of the Company issued till date for the period under audit.

• (xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected to its directors and hence, provisions of Section 192 of the Act are not applicable to the Company.

• (xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi)(a) of the Order is not applicable.

• (b) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi)(b) of the Order is not applicable.

• (c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not applicable.

• (d) According to the information and explanations provided to us, the Group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) does not have more than one CIC.

• (xvii) The Company has not incurred cash losses in the current and in the immediately preceding financial year.

• (xviii) There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not applicable.

• (xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities accompanying the standalone financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due

378 LUPIN LIMITED | Integrated Report 2023-2024

within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

• (xx) (a) In our opinion and according to the information and explanations given to us, there is no unspent amount under sub-section (5) of Section 135 of the Act pursuant to any project other than ongoing

projects. Accordingly, clause 3(xx)(a) of the Order is not applicable.

• (b) In respect of ongoing projects, the Company has transferred the unspent amount of ₹ 185 million for the year ended 31 March 2024 to a Special Account as per section 135(6) of the said Act.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.:101248W/W-100022

Sudhir Soni

Place: Mumbai Dated: May 06, 2024

Partner Membership No.: 41870 ICAI UDIN: 24041870BKGDKJ8343

Corporate Overview Statutory Reports Financial Statements 379

Annexure - I to the Independent Auditor’s Report - 31 March 2024

Amounts of dues of Income tax, Sales tax, Value added tax, Service tax, duty of Customs, duty of Excise which have not been deposited with the appropriate authorities on account of any dispute

Name of the statute	Nature of Dues	Forum where dispute is pending	Period to which amount relates Amount demanded (₹ in million) Amount deposited under protest (₹ in million) Amount unpaid (₹ in million)
Income tax Act, 1961	Income tax	Commissioner of Income tax (Appeals)	2005- 2006 to 2020-2021 3,117.3 - 57.7
		High Court	2008-2009 2013-2014 29.0 - 29.0
Central Excise Act, 1944	Excise Duty De-bonding matters	Customs Excise, and Service Tax Appellate Tribunal (CE STAT)	2010-2012 418.1 371.1 47.0
	Excise Duty		2015-2016 2017-2018 54.2 - 54.2
	Service Tax Matters		2005-2008 47.9 - 47.9
CGST Act, 2017	Goods and Service Tax	Adjudicating Authority	2017-2020 2021-2022 2023-2024 685.4 - 685.4
		Commissioner Appeal	2017-2019 177.7 - 177.7
		Appellate Authority	2017-2019 128.7 - 128.7
		High Court	2017-2018 onwards 239.6 - 239.6
Foreign Trade (Development & Regulations) Act, 1992	Custom Duty	Appellate Authority	2016-2020 16.8 - 16.8
		Additional Director DGFT	2018-2020 0.5 - 0.5
		Commissioner Appeal	2018-2020 8.4 - 8.4
Central and Various States' Sales Tax Acts and Various States' Value Added Tax Act	Central Sales Tax	Additional Commissioner	2015-2017 0.4 - 0.4
		Assistant Commissioner	2003-2004 0.3 0.3 -
		Commissioner of Sales Tax (Appeal)	2002-2003 0.1 - 0.1
		Sales Tax Tribunal	2000-2001 2004-2005 0.3 0.3 -
	Entry Tax	Additional Commissioner	1994-1995 1.1 - 1.1
		Commissioner of Sales Tax (Appeals)	2001-2002 0.9 - 0.9
		High Court	2002-2003 2004-2005 11.6 6.3 5.3
		Sales Tax Tribunal	1994-1995 2003-2004 2005-2006 2009-2011 17.9 5.6 12.3
	Sales Tax	Supreme Court	2001-2004 2005-2006 7.4 7.4 -
	VAT	Additional Comissioner	2015-2018 9.3 1.9 7.3
		Sales Tax Tribunal	2000-2001 2009-2010 14.4 - 14.4
		Supreme Court	2000-2001 0.5 - 0.5

380 LUPIN LIMITED | Integrated Report 2023-2024

Annexure B to the Independent Auditor’s Report on the Standalone Financial Statements of Lupin Limited for the year ended 31 March 2024

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

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

Opinion

We have audited the internal financial controls with reference to financial statements of Lupin Limited (“the Company”) as of 31 March 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2024, based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the “Guidance Note”).

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

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

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements.

Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

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

Meaning of Internal Financial Controls with Reference to Financial Statements

A company’s internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations

Corporate Overview Statutory Reports Financial Statements 381

of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial

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

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.:101248W/W-100022

Sudhir Soni

Place: Mumbai Dated: May 06, 2024

Partner Membership No.: 41870 ICAI UDIN: 24041870BKGDKJ8343

382 LUPIN LIMITED | Integrated Report 2023-2024

Balance Sheet

as at March 31, 2024

==> picture [484 x 520] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Note As at 31.03.2024 As at 31.03.2023
ASSETS
Non-Current Assets
a. Property, Plant and Equipment 2 33,264.9 34,613.5
b. Capital Work-in-Progress 3 4,111.2 7,379.9
c. Goodwill 48(b) 158.6 158.6
d. Other Intangible Assets 4 5,990.9 3,282.5
e. Right-of-use Assets 5 1,717.3 2,164.7
f. Intangible Assets Under Development 6 347.1 1,886.0
g. Financial Assets
(i) Non-Current Investments
- In Subsidiaries 7(a) 105,753.9 94,919.6
- In Others 7(b) 1,964.3 426.0
(ii) Non-Current Loans 8 35.7 40.4
(iii) Other Non-Current Financial Assets 9 1,035.8 900.6
h. Non-Current Tax Assets (Net) 1,057.1 3,766.1
i. Other Non-Current Assets 10 913.1 1,589.6
156,349.9 151,127.5
Current Assets
a. Inventories 11 29,693.1 30,194.7
b. Financial Assets
(i) Current Investments 12 8,088.5 4,397.7
(ii) Trade Receivables 13 38,421.5 26,744.2
(iii) Cash and Cash Equivalents 14 1,237.0 856.6
(iv) Other Bank Balances 15 149.4 153.1
(v) Current Loans 16 24.7 20.6
(vi) Other Current Financial Assets 17 5,802.6 3,693.1
c. Other Current Assets 18 7,985.0 9,649.2
d. Assets included in disposal group held for sale 49(b) 1,476.9 -
92,878.7 75,709.2
TOTAL 249,228.6 226,836.7
EQUITY AND LIABILITIES
Equity
a. Equity Share Capital 19 911.4 910.0
b. Other Equity 205,119.5 183,208.6
206,030.9 184,118.6
Liabilities
Non-Current Liabilities
a. Financial Liabilities
(i) Lease Liabilities 41 429.3 651.0
(ii) Other Non-Current Financial Liabilities 20 434.9 284.1
b. Non-Current Provisions 21 3,297.6 3,163.3
c. Deferred Tax Liabilities (Net) 44 1,560.1 1,850.2
d. Other Non-Current Liabilities 22 536.4 491.0
6,258.3 6,439.6
Current Liabilities
a. Financial Liabilities
(i) Current Borrowings 23 181.3 6,134.6
(ii) Lease Liabilities 41 438.7 699.5
(iii) Trade Payables 24
- Total outstanding dues of Micro Enterprises and Small Enterprises 751.2 736.5
- Total outstanding dues of other than Micro Enterprises and Small Enterprises 19,611.5 14,926.4
(iv) Other Current Financial Liabilities 25 3,278.1 2,575.9
b. Other Current Liabilities 26 3,723.4 3,085.2
c. Current Provisions 27 4,954.3 4,886.1
d. Current Tax Liabilities (Net) 3,525.7 3,234.3
e. Liabilities included in disposal group held for sale 49(b) 475.2 -
36,939.4 36,278.5
TOTAL 249,228.6 226,836.7
See accompanying notes forming part of the standalone financial statements
----- End of picture text -----

In terms of our report attached For B S R & Co. LLP Chartered Accountants Firm Registration No. 101248W/W-100022

For and on behalf of Board of Directors of Lupin Limited

Sudhir Soni Partner Membership No.: 041870

Manju D. Gupta Chairman DIN: 00209461

Vinita Gupta Chief Executive Officer DIN: 00058631

Nilesh D. Gupta Managing Director DIN: 01734642

Ramesh Swaminathan

R. V. Satam

Executive Director, Global CFO & CRO and Head - Corporate Affairs

Company Secretary ACS - 11973

Place: Mumbai Dated: May 06, 2024

Corporate Overview Statutory Reports Financial Statements 383

Statement of Profit and Loss

for the year ended March 31, 2024

==> picture [485 x 385] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Note
31.03.2024 31.03.2023
INCOME :
Revenue from Operations 28 146,665.0 112,588.3
Other Income 29 1,067.3 912.6
Total Income 147,732.3 113,500.9
EXPENSES:
Cost of Materials Consumed 30 34,073.0 31,512.0
Purchases of Stock-in-Trade 16,338.6 15,257.0
Changes in Inventories of Finished Goods, 31 (159.3) 1,207.9
Work-in-Progress and Stock-in-Trade [(Increase)/Decrease]
Employee Benefits Expense 32 20,955.1 19,341.4
Finance Costs 33 563.5 984.4
Depreciation, Amortisation and Impairment Expense 2,4,5,6 & 47 7,247.5 5,483.4
Other Expenses 34 40,954.8 35,631.0
Net (gain)/loss on Foreign Currency Transactions (87.8) (1,187.6)
Total Expenses 119,885.4 108,229.5
Profit before Tax 27,846.9 5,271.4
Tax Expense 44(a)
- Current Tax (Net) 4,840.5 958.9
- Deferred Tax (Net) (254.5) 60.4
Total Tax Expense 4,586.0 1,019.3
Profit for the year 23,260.9 4,252.1
Other Comprehensive Income/(Loss)
(A) (i) Items that will not be reclassified subsequently to profit or loss:
- Remeasurements of Defined Benefit Liability (135.1) (21.4)
(ii) Income tax relating to items that will not be reclassified to profit or loss 47.2 7.5
(B) (i) Items that will be reclassified subsequently to profit or loss:
- The effective portion of gain & losses on hedging instruments in a cash flow hedge 52.7 (295.5)
(ii) Income tax relating to items that will be reclassified to profit or loss (11.7) 70.2
Other Comprehensive Income/(Loss) for the year, net of tax (46.9) (239.2)
Total Comprehensive Income for the year 23,214.0 4,012.9
Earnings per equity share (in ₹) 40
Basic 51.10 9.35
Diluted 50.87 9.31
Face Value of Equity Share (in ₹) 2.00 2.00
See accompanying notes forming part of the standalone financial statements
----- End of picture text -----

In terms of our report attached For B S R & Co. LLP Chartered Accountants Firm Registration No. 101248W/W-100022

Sudhir Soni

Partner Membership No.: 041870

For and on behalf of Board of Directors of Lupin Limited

Manju D. Gupta

Vinita Gupta

Chief Executive Officer DIN: 00058631

Chairman DIN: 00209461

Ramesh Swaminathan

R. V. Satam

Executive Director, Global CFO & CRO and Head - Corporate Affairs DIN: 01833346

Company Secretary ACS - 11973

Nilesh D. Gupta Managing Director DIN: 01734642

Place: Mumbai Dated: May 06, 2024

384 LUPIN LIMITED | Integrated Report 2023-2024

==> picture [419 x 680] intentionally omitted <==

----- Start of picture text -----

- - - - -
(₹ in million) Total Other Equity 180,592.9 4,252.1 (13.9) 4,238.2 (224.1) (1,818.5) 455.3 (35.2) 183,208.6 23,260.9 (87.9) 23,173.0 38.7 0.80 (1,820.4) 717.8 (199.0) 205,119.5
- - - - - - - - - - - - - - - - - - -
185.4 (224.1) (38.7) 38.7
Flow Hedges
Other items of Other
Comprehensive Income Effective portion of Cash
- - - - - - - - - - - - - - - - 0.8 - - - - - 0.8
Share Application Money Pending Allotment
- - - - - - - - - - - - - - - - - - - -
317.9 317.9 317.9
Reserve
Amalgamation
909.0 - 909.0 1.0 910.0 - - - - - - - - - - - - - - - - - - - - -
760.0 760.0
Reserve
in million
₹
Special Economic Zone Reinvestment
- - - - - - - - - - - -
Retained Earnings 150,327.4 4,252.1 (13.9) 4,238.2 (1,818.5) 152,747.1 23,260.9 (87.9) 23,173.0 (1,820.4) (760.0) 173,339.7
As at 31.03.2023 506,321
- - - - - - - - - - - - - - - - - -
No. of Shares 454,475,014 454,475,014 454,981,335 General Reserve 17,134.1 98.5 17,232.6 154.4 17,387.0
- 1.4
910.0 910.0 911.4 Reserves and Surplus - - - - - - - - - - - - - - - -
1,617.3 (35.2) (98.5) 1,483.6 (199.0) (154.4) 1,130.2
in million
₹ Employees Stock
Options Outstanding
- - - - - - - - - - - - - - - - - - -
Securities Premium 10,620.5 455.3 11,075.8 717.8 11,793.6
As at 31.03.2024 No. of Shares 454,981,335 454,981,335 697,573 455,678,908 - - - - - - - - - - - - - - - - - - - -
126.5 126.5 126.5
Capital Reserve
Redemption
- - - - - - - - - - - - - - - - - - - -
Capital Reserve 263.9 263.9 263.9
A. Equity Share Capital [Refer note 19] Particulars Balance at the beginning of the reporting year Changes in Equity Share Capital due to prior period errors Restated balance at the beginning of the current reporting period Changes in equity share capital during the year Balance at the end of the reporting year B. Other Equity Particulars Balance as at 31.03.2022 Profit/(Loss) for the year Remeasurements of defined benefit plans (net of tax) Total comprehensive income/(loss) for the year Movement in other comprehensive income for the year Received during the year Final dividend on Equity Shares Issue of equity shares on exercise of employee stock options Amortised/Exercised during the year Transfer to Special Economic Zone Reinvestment Reserve Transfer from share based payments to General Reserve Balance as at 31.03.2023 Profit/(Loss) for the year Remeasurements of defined benefit plans (net of tax) Total comprehensive income/(loss) for the year Movement in other comprehensive income for the year Received during the year Final dividend on Equity Shares Issue of equity shares on exercise of employee stock options Amortised/Exercised during the year Transfer to Special Economic Zone Reinvestment Reserve Transfer from share based payments to General Reserve Balance as at 31.03.2024
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 385

Nature of Reserves	a) Capital Reserve	The Capital reserve is created on receipts of government grants for setting up the factories in backward areas, for performing research on critical medicines for the	betterment of the society and on restructuring of the Capital of the Company under various schemes of Amalgmation.	b) Capital Redemption Reserve	This reserve represents amounts transferred on redemption of redeemable cumulative preference shares in earlier years. The reserve can be utilised in accordance	with the provisions of section 69 of the Companies Act, 2013.	c) Securities Premium	Securities premium account comprises of premium on issue of shares. The reserve is utilised in accordance with the specific provision of the Companies Act, 2013.	d) Employees Stock Options Outstanding	The Company has employee stock option schemes under which the option to subscribe for the Company’s shares have been granted to certain employees and	directors. This is used to recognize the value of equity-settled share-based payments provided to the employees as part of their remuneration.	e) General Reserve	The General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one	component of equity to another and is not an item of other comprehensive income.	f) Special Economic Zone Reinvestment Reserve	The Special Economic Zone Reinvestment Reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act, 1961. The reserve should be utilized by the Company for acquiring new plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the	Income Tax Act, 1961	g) Amalgamation Reserve	This reserve represents creation of amalgamation reserve pursuant to the scheme of amalgamation between erstwhile Lupin Laboratories Ltd. and the Company.	h) Share Application Money Pending Allotment	Share application money represents amount received towards share application money which were pending for allotment as on reporting date.	i) Cash Flow Hedge Reserve	The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging	instruments entered into for Cash flow hedges. The cumulative gain or loss arising on changes in fair value of the designated portion of the hedging instruments that	are recognised and accumulated under the heading of cash flow reserve will be reclassfied to statement of profit and loss only when the hedged items affect the	profit or loss.	In terms of our report attached	ForB S R & Co. LLP For and on behalf ofBoard of Directors of Lupin Limited	Chartered Accountants	Firm Registration No. 101248W/W-100022	Sudhir Soni Manju D. Gupta Vinita Gupta Nilesh D. Gupta	Partner Chairman Chief Executive Officer Managing Director	Membership No.: 041870 DIN: 00209461 DIN: 00058631 DIN: 01734642	Ramesh Swaminathan R. V. Satam	Executive Director, Global CFO & CRO and Company Secretary	Head - Corporate Affairs ACS - 11973	DIN: 01833346	Place: Mumbai	Dated: May 06, 2024

386 LUPIN LIMITED | Integrated Report 2023-2024

Statement of Cash Flows

for the year ended March 31, 2024

==> picture [486 x 588] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
31.03.2024 31.03.2023
A. Cash Flow from Operating Activities
Profit/(Loss) before Tax 27,846.9 5,271.4
Adjustments for:
Depreciation, Amortisation and Impairment Expense 7,247.5 5,483.4
(Profit)/Loss on Sale/Write-off of Property, Plant and Equipment/Intangible Assets 2.4 (61.7)
-
Profit on Divestment of Business undertaking (6.4)
Gain on sale of Mutual Fund Investments (283.8) (117.1)
Finance Costs 563.5 984.4
Interest on Deposits with Banks and Others (61.5) (71.1)
Interest on Income Tax Refund (373.6) 3.1
Unrealised Loss/(Gain) on Mutual Fund Investments (53.8) (14.1)
Unrealised Loss/(Gain) on Non-Current Investment 570.8 (349.3)
Doubtful Trade Receivables/Advances provided 168.5 106.8
Bad Trade Receivables/Advances written off 0.2 6.8
Share Based Payments Expense 149.2 205.6
Unrealised Exchange loss/(gain) on revaluation (210.0) (338.9)
Operating Cash Flows before Working Capital Changes 35,559.9 11,109.3
Changes in working capital:
Adjustments for (increase)/decrease in operating assets:
Inventories (1,582.1) 1,576.7
Trade Receivables (13,114.5) 728.6
Current Loans (4.1) 2.1
Non-Current Loans 4.7 (38.3)
Other Current Financial Assets (2,208.8) 2,264.9
Other Current Assets 735.7 830.8
Other Non-Current Assets 16.4 107.5
Other Non-Current Financial Assets 175.5 (182.3)
Adjustments for increase/(decrease) in operating liabilities:
Trade Payables 5,374.1 2,147.7
Other Current Financial liabilities 654.3 28.1
Other Current liabilities 638.7 213.6
Other Non-Current liabilities 45.4 233.3
Other Non-Current Financial liabilities 242.0 47.3
Current Provisions 18.2 296.3
Non-Current Provisions (47.6) (157.7)
Cash Generated from Operations 26,507.8 19,207.9
Net Income tax paid (1,466.5) (1,268.0)
Net Cash Flow generated from/(used in) Operating Activities 25,041.3 17,939.9
B. Cash Flow from Investing Activities
Payment for acquisition of business, net off cash acquired (86.8) (2,910.0)
Payment for acquisition of Property, Plant and Equipment/Intangible Assets, including
(6,985.4) (5,751.3)
capital advances
Proceeds from sale of Property, Plant and Equipments/Intangible Assets 89.2 144.8
Proceeds from disposal of Business Undertaking net of cash and cash equivalent 7,221.1
Purchase of Non-Current Investment (12,944.4) (8,109.4)
Purchase of Current Investments (108,493.3) (116,222.1)
Proceeds from sale of Current Investments 105,140.1 120,179.6
Bank balances not considered as Cash and Cash Equivalents 7.8 (94.4)
Interest on Deposits with Banks and others 61.5 71.1
Net Cash Flow generated from/(used in) Investing Activities (15,990.2) (12,691.7)
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 387

Statement of Cash Flows

for the year ended March 31, 2024

==> picture [486 x 209] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
31.03.2024 31.03.2023
C. Cash Flow from Financing Activities
Proceeds from/(Repayment of) Current Borrowings (5,953.3) (1,770.1)
Proceeds from issue of equity shares (ESOPs) and Share application money 2.2 1.0
Securities Premium Received (ESOPs) 143.3 18.4
Payment of Lease liabilities (net off interest) (742.2) (680.6)
Finance Costs (292.7) (726.3)
Dividend paid (1,828.0) (1,825.0)
Net Cash Flow generated from/(used in) Financing Activities (8,670.7) (4,982.6)
Net Increase/(Decrease) in Cash and Cash Equivalents 380.4 265.6
Cash and Cash Equivalents as at the beginning of the year 856.6 591.0
Cash and Cash Equivalents as at end of the year 1,237.0 856.6
Reconciliation of Cash and Cash Equivalents with the Balance Sheet
Cash and Cash Equivalents as per Balance Sheet [Refer note 14] 1,237.0 856.6
- -
Unrealised loss/(gain) on foreign currency Cash and Cash Equivalents
Bank Overdraft - -
Cash and Cash Equivalents as at the end of the year 1,237.0 856.6
----- End of picture text -----

Notes:

1. The above Cash Flow Statement has been prepared under the ‘Indirect Method’ as set out in the Indian Accounting Standard 7 (Ind AS -7) “Statement of Cash Flow”.

2. Cash and cash equivalents comprises cash on hand, cash at bank and short term deposits with an original maturity of three months or less, that are readily convertible into known amounts of cash and subject to insignificant risk of changes in value. For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

3. Refer note 58 for Non Cash Changes in Cash Flows from Financing Activities.

In terms of our report attached For B S R & Co. LLP Chartered Accountants Firm Registration No. 101248W/W-100022

Sudhir Soni

Partner Membership No.: 041870

For and on behalf of Board of Directors of Lupin Limited

Manju D. Gupta

Vinita Gupta

Chief Executive Officer DIN: 00058631

Chairman DIN: 00209461 Ramesh Swaminathan Executive Director, Global CFO & CRO and Head - Corporate Affairs DIN: 01833346

R. V. Satam

Company Secretary ACS - 11973

Nilesh D. Gupta Managing Director DIN: 01734642

Place: Mumbai Dated: May 06, 2024

388 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

1A. OVERVIEW:

Lupin Limited, (‘the Company’) incorporated in 1983 having CIN L24100MH1983PLC029442, is an innovation led Transnational Pharmaceutical Company producing, developing and marketing a wide range of branded and generic formulations, biotechnology products and active pharmaceutical ingredients (APIs) globally. The Company has significant presence in the Cardiovascular, Diabetology, Asthama, Pediatrics, Central Nervous System, GastroIntestinal, Anti-Infectives and Nonsteroidal Anti Inflammatory Drug therapy segments and is a global leader in the Anti-TB and Cephalosporins segments. The Company along with its subsidiaries has manufacturing locations spread across India, USA, Mexico and Brazil with trading and other incidental and related activities extending to the global markets. The Company’s shares are listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. These Standalone Financial Statements were authorized for issue by the Company’s Board of Directors on May 06,2024

The Company is a public limited company incorporated and domiciled in India. The address of its registered office is Kalpataru Inspire, 3[rd] floor, Western Express Highway, Santacruz (East), Mumbai 400055.

1B. MATERIAL ACCOUNTING POLICIES:

• a) Basis of accounting and preparation of Standalone Financial Statements:

Basis of preparation

• i) These Standalone Financial Statements of the Company have been prepared and presented in all material aspects in accordance with the principles laid down in Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified under section 133 of the Companies Act, 2013 (‘the Act’) read with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act and accounting principles generally accepted in India.

Functional and Presentation Currency

• ii) These Standalone Financial Statements are presented in Indian rupees, which is the functional currency of the Company. All financial information presented in Indian rupees has been rounded to the nearest million, except otherwise indicated.

Basis of measurement

• iii) The financial statements have been prepared on the historical cost basis, except

for: (i) certain financial instruments that are measured at fair values at the end of each reporting period; (ii) Non-current assets classified as held for sale which are measured at the lower of their carrying amount and fair value less costs to sell; (iii) derivative financial instrument and (iv) defined benefit plans – plan assets that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services

Use of Significant Estimates and Judgements

• iv) The preparation of the Standalone Financial Statements in conformity with Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the Standalone Financial Statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialised. Estimates and underlying assumptions are reviewed on an ongoing basis.

Management considers the accounting estimates and assumptions discussed below to be its critical accounting estimates and, accordingly, provide an explanation of each below.

Information about critical judgments made in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the following accounting policies.

• Measurement and likelihood of occurrence of provisions and contingencies (Refer note r)

• Impairment of non-financial assets (Refer note f)

• Impairment of financial assets (Refer note h)

• Provision for Income taxes and uncertain tax positions (Refer note j)

• Goodwill impairment (Refer note l)

Corporate Overview Statutory Reports Financial Statements 389

Notes

Forming part of the Standalone Financial Statements

• b) Property, Plant and Equipment & Depreciation:

I. Recognition and Measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. The cost of an item of property, plant and equipment comprises:

• its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.

• any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

• the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which the Company incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.

• income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management, are recognised in Statement of Profit and Loss. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

The cost of an item of property, plant and equipment shall be recognized as an asset if, and only if, it is probable that future economic benefits associated with the expenditure/item will flow to the company, and the cost of the item can be measured reliably.

Freehold land is carried at historical cost less any accumulated impairment losses.

Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost, comprising of direct costs, related incidental expenses and attributable interest.

II. Subsequent Expenditure

The subsequent cost of an item of property, plant and equipment shall be recognized as an asset if, and only if, it is probable that future economic benefits associated

with the expenditure/item will flow to the company and the cost of the item can be measured reliably.

III. Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value, if any.

Depreciation on property, plant and equipment of the Company has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Act, except in respect of the following categories of assets, in whose case the life of the assets has been assessed as under based on independent technical evaluation and management’s assessment thereof, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

	Particulars	Estimated Useful Life
	Improvements on	Over the period of
	Leased Premises	lease
	Building Plant and Equipment Office Equipment (Desktop and Laptop)	5 to 80 years 10 to 15 years 4 years
	Furniture & Fixtures	5 to 10years

Depreciation method, useful live and residual values are reviewed at each financial year end and adjusted if appropriate.

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

IV. Derecognition

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on disposal of an item of property, plant and equipment is recognised in Statement of Profit and Loss.

• c) Intangible Assets:

I. Recognition and Measurement

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset comprises of its purchase price, including any import duties and other taxes (other

390 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use.

Expenditure on research and development eligible for capitalization, if any are carried as Intangible assets under development where such assets are not yet ready for their intended use.

II. Subsequent Expenditure

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

III. Derecognition of Intangible Assets

Intangible assets are de-recognised either on their disposal or where no future economic benefits are expected from their use. Losses arising on such derecognition are recorded in the profit or loss, and are measured as the difference between the net disposal proceeds, if any, and the carrying amount of respective intangible assets as on the date of derecognition.

IV. Amortisation

Intangible assets are amortised over their estimated useful life on Straight Line Method as follows:

as follows:
Particulars	Estimated Useful Life
Computer Software Trademark and Licenses Dossiers/Marketing Rights Knowhow	5 to 6 years 4 to 5 years 10 years 5years

The estimated useful lives of intangible assets and the amortisation period are reviewed at the end of each financial year and the amortisation method is revised to reflect the changed pattern, if any.

• d) Non-current assets held for sale:

Assets are classified as held for sale and stated at the lower of carrying amount and fair value less costs to sell if the asset is available for immediate sale and its sale is highly probable. Such assets or group of assets are presented separately in the Balance Sheet as “Assets Classified as Held for Sale”. Once classified as held for sale, intangible assets and property, plant and equipment are no longer amortised or depreciated.

• e) Research and Development:

• Revenue expenditure pertaining to research is charged to the respective heads in the

Statement of Profit and Loss in the year it is incurred. Development costs of products are also charged to the Statement of Profit and Loss in the year it is incurred, unless following conditions are satisfied in which case such expenditure is capitalized:

• a product’s technical feasibility has been established

• development costs can be measured reliably

• future economic benefits are probable

• the company intends to and has sufficient resources/ability to complete development and to use or sell the asset.

The amount capitalised comprises of expenditure that can be directly attributed or allocated on a reasonable and consistent basis for creating, producing and making the asset ready for its intended use. Property, Plant and Equipment utilised for research and development are capitalised and depreciated in accordance with the policies stated for Property, Plant and Equipment.

Expenditure on in-licensed development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised, if the cost can be reliably measured, the product or process is technically and commercially feasible and the Company has sufficient resources to complete the development and to use and sell the asset.

Payments to third parties that generally take the form of up-front payments and milestones for in-licensed products, compounds and intellectual property are capitalised since the probability of expected future economic benefits criterion is always considered to be satisfied for separately acquired intangible assets.

f) Impairment of non-financial assets:

The carrying values of Property, Plant and Equipment and Intangible assets at each balance sheet date are reviewed for impairment if any indication of impairment exists. The following intangible assets are tested for impairment each financial year even if there is no indication that the assets is impaired:

• i) an intangible asset that is not yet available for use; and

• ii) an intangible asset that is having indefinite useful life.

If the carrying amount of the Property, Plant and Equipment and Intangible assets exceed the estimated recoverable amount, an impairment

Corporate Overview Statutory Reports Financial Statements 391

Notes

Forming part of the Standalone Financial Statements

is recognised for such excess amount. The impairment loss is recognised as an expense in the Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset.

The recoverable amount is the greater of the asset’s fair value less costs of disposal and its value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cash-generating unit for which the estimates of future cash flows have not been adjusted.

When there is indication that an impairment loss recognised for an asset (other than a revalued asset) in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, to the extent the amount was previously charged to the Statement of Profit and Loss. In case of revalued assets, such reversal is not recognised.

• g) Foreign Currency Transactions/Translations:

• i) Transactions denominated in foreign currency are recorded at exchange rates prevailing at the date of transaction or at rates that closely approximate the rate at the date of the transaction.

• ii) Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the exchange rate of the reporting date. Non-monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.

• iii) Exchange differences arising on the settlement of monetary items or on translating monetary items at reporting date at rates different from those at which they were translated on initial recognition during the period or in previous Standalone Financial Statements are recognized in the Statement of Profit and Loss in the period in which they arise.

• h) Financial Instruments:

Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

I. Financial Assets Classification

On initial recognition the Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

All financial assets except Trade receivable are recognised initially at fair value, plus in case of financial assets not recorded at fair value through Profit or Loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, Company’s trade receivables that do not contain a significant financing component are measured at transaction price under Ind AS 115 “Revenue from Contracts with Customers”.

Purchases or sales of financial assets including mututal fund that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e. the date that the Company commits to purchase or sell the asset.

Financial assets at amortised cost

A ‘financial asset’ is measured at the amortised cost if both the following conditions are met:

• i) the asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• ii) contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss. This category generally applies to trade and other receivables.

392 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

Financial assets included within the fair value through profit and loss (FVTPL) category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in below categories:

• i) Debt instruments at amortised costs ii) Debt instruments at fair value through other comprehensive income (FVTOCI)

• iii) Derivative and equity instruments at fair value through profit or loss (FVTPL)

• iv) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVTOCI) or FVTPL. The Company makes such election on an instrument-byinstrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in other comprehensive income (OCI). There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of such investments.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

Investments in subsidiaries and joint venture

Investments in subsidiaries and joint venture are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiaries and joint venture, the difference between net disposal proceeds and the carrying amounts are recognized in the statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of similar financial assets) is primarily derecognised (i.e. removed from the Company’s balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘passthrough’ arrangement; and either:

• i) the Company has transferred substantially all the risks and rewards of the asset, or

• ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset,but has transferred control of the asset.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

• i) Trade receivables

• ii) Financial assets measured at amortised cost (other than trade receivable)

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognised as loss allowance.

Financial assets classified as amortised cost (listed as ii above), subsequent to initial recognition, are assessed for evidence of impairment at end of each reporting period basis monitoring of whether there has been a significant increase in credit risk. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forward - looking information.

Corporate Overview Statutory Reports Financial Statements 393

Notes

Forming part of the Standalone Financial Statements

If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognised as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognised as loss allowance.

Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognising impairment loss allowance based on 12-month ECL.

ECL allowance recognised (or reversed) during the period is recognised as expense (or income) in the statement of profit and loss under the head ‘Other expenses’.

Write – off

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering the financial asset in its entirety or a portion thereof. A write-off constitutes a derecognition event.

II. Financial Liabilities Classification

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities measured at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value with changes in fair value being recognised in the Statement of Profit and Loss.

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, at amortised cost (loans, borrowings and payables) or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

The purpose of subsequent measurement, financial liabilities are classified in two categories:

• i) Financial liabilities at fair value through profit or loss

• ii) Financial liabilities at amortised cost (loans and borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk are recognized in OCI. These gains/losses are not subsequently transferred to Statement of Profit and Loss. However, the Company may transfer the cumulative gain or loss within other equity. All other changes in fair value of such liability are recognised in the Statement of Profit and Loss.

Financial liabilities at amortised cost (loans and borrowings)

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in Statement of Profit and Loss when the liabilities are derecognised.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation

394 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

is included as finance costs in the Statement of Profit and Loss.

This category generally applies to interestbearing loans and borrowings.

Financial guarantee contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. If not designated as at FVTPL, are subsequently measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount initially recognised less cumulative amount of income recognised.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

Embedded derivatives

If the hybrid contract contains a host that is a financial asset within the scope IndAS 109, the Company does not separate embedded derivatives. Rather, it applies the classification requirements contained in Ind AS 109 to the entire hybrid contract. Derivatives embedded in all other host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognised in Statement of Profit and Loss, unless designated as effective hedging instruments. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Derivative financial instruments

The Company uses derivative financial instruments, such as foreign exchange forward contracts to manage its exposure to foreign exchange risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Hedge Accounting

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to highly probable forecast transactions. The Company designates such forward contracts in a cash flow hedging relationship by applying the hedge accounting principles. These forward contracts are stated at fair value at each reporting date. Changes in the fair value of these forward contracts that are designated and effective as hedges of future cash flows are recognised directly in (OCI) and accumulated in “Cash Flow Hedge Reserve Account” under Other Equity, net of applicable deferred income taxes and the ineffective portion is recognised immediately in the Statement of Profit and Loss. Amounts accumulated in the “Cash Flow Hedge Reserve Account” are reclassified to the Statement of Profit and Loss in the same period during which the forecasted transaction affects Statement of Profit and Loss. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. For forecasted transactions, any cumulative gain or loss on the hedging instrument recognised in “Cash Flow Hedge Reserve Account” is retained until the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, the net cumulative gain or loss recognised

Corporate Overview Statutory Reports Financial Statements 395

Notes

Forming part of the Standalone Financial Statements

in “Cash Flow Hedge Reserve Account” is immediately transferred to the Statement of Profit and Loss.

III. Measurement

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

• (a) Level 1: The fair value of financial instruments quoted in active markets is based on their quoted closing price at the balance sheet date.

• (b) Level 2: The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques using observable market data. Such valuation techniques include discounted cash flows, standard valuation models based on market parameters for interest rates, yield curves or foreign exchange rates, dealer quotes for similar instruments and use of comparable arm’s length transactions.

• (c) Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on observable market data (unobservable inputs).

i) Business combinations:

• i) The Company accounts for each business combination by applying the acquisition method. The acquisition date is the date on which control is transferred to the acquirer. Judgment is applied in determining the acquisition date and determining whether control is transferred from one party to another.

• ii) Control exists when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through power over the entity. In assessing control, potential voting rights are considered only if the rights are substantive.

• iii) The Company measures goodwill as of the applicable acquisition date at the fair value of the consideration transferred, including the recognized amount of any noncontrolling interest in the acquiree, less the net recognized amount of the identifiable assets acquired and liabilities assumed (including contingent liabilities in case such a liability represents a present obligation and arises from a past event, and its fair value can be measured reliably). When

the fair value of the net identifiable assets acquired and liabilities assumed exceeds the consideration transferred, a bargain purchase gain is recognised immediately in the OCI and accumulates the same in equity as Capital Reserve where there exists clear evidence of the underlying reasons for classifying the business combination as a bargain purchase else the gain is directly recognised in equity as Capital Reserve, without routing the same through OCI.

• iv) Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Company to the previous owners of the acquiree, and equity interests issued by the Company. Consideration transferred also includes the fair value of any contingent consideration. Consideration transferred does not include amounts related to settlement of pre-existing relationships.

• v) Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise subsequent changes in the fair value of the contingent consideration are recognized in the Statement of Profit and Loss.

• vi) Transaction costs that the Company incurs in connection with a business combination, such as finder’s fees, legal fees, due diligence fees and other professional and consulting fees, are expensed as incurred.

• vii) On an acquisition-by-acquisition basis, the Company recognizes any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets.

• viii) Any goodwill that arises on account of such business combination is tested annually for impairment.

j) Income tax:

Income tax expense consists of current and deferred tax. Income tax expense is recognised in the Statement of Profit and Loss except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

396 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date.

Current tax assets and liabilities are offset only if, the Company:

• i) has a legally enforceable right to set off the recognised amounts; and

• ii) Intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax

Deferred taxes are recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.

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

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

The Company recognises deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, branches and associates, and interests in joint arrangements, except to the extent that both of the following conditions are satisfied:

• i) When the Company is able to control the timing of the reversal of the temporary difference; and

• ii) it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.

The measurement of deferred taxes reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if:

• i) The Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

• ii) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.

Accruals for uncertain tax positions require management to make judgments of potential exposures. Accruals for uncertain tax positions are measured using either the most likely amount or the expected value amount depending on which method the entity expects to better predict the resolution of the uncertainty. Tax benefits are not recognised unless the management based upon its interpretation of applicable laws and regulations and the expectation of how the tax authority will resolve the matter concludes that such benefits will be accepted by the authorities. Once considered probable of not being accepted, management reviews each material tax benefit and reflects the effect of the uncertainty in determining the related taxable amounts.

• k) Inventories:

Inventories of all procured materials, stock-intrade, finished goods and work-in-progress are valued at the lower of cost (on moving weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The comparison of cost and net realisable value is made on an item-by-item basis.

Cost of raw material, packing materials and stock-in-trade includes all charges in bringing the goods to their present location and condition, including non-creditable taxes and other levies, transit insurance and receiving

Corporate Overview Statutory Reports Financial Statements 397

Notes

Forming part of the Standalone Financial Statements

charges. However, raw materials and packing materials are considered to be realisable at cost if the finished products, in which they will be used, are expected to be sold at or above cost.

Cost of finished goods and work-in-progress includes the cost of raw materials, packing materials, cost of conversion, non-creditable duties and taxes as applicable and other costs incurred in bringing the inventories to their present location and condition. Fixed production overheads are allocated on the basis of normal capacity of production facilities.

Cost of conversion of inventories include costs directly related to the units of production, such as direct labour. They also include a systematic allocation of fixed and variable production overheads that are incurred in converting materials into finished goods.

• l) Goodwill impairment

Goodwill is tested for impairment annually. If events or changes in circumstances indicate a potential impairment, as part of the review process, the carrying amount of the Cash Generating Units (CGUs) (including allocated goodwill) is compared with its recoverable amount by the Company. The recoverable amount is the higher of fair value less costs to sell and value in use, both of which are calculated by the Company using a discounted cash flow analysis. Calculating the future net cash flows expected to be generated to determine if impairment exists and to calculate the impairment involves significant assumptions, estimation and judgment. The estimation and judgment involves, but is not limited to, industry trends including pricing, estimating long-term revenues, revenue growth and operating expenses.

m) Revenue Recognition:

Sale of Goods

The majority of the Company’s contracts related to product sales include only one performance obligation, which is to deliver products to customers based on purchase orders received. Revenue from sales of products is recognized at a point in time when control of the products is transferred to the customer, generally upon delivery, which the Company has determined is when physical possession, legal title of the products transfer to the customer and the Company is entitled to payment. The timing of the transfer of risks and rewards varies depending on the individual terms of the sales agreements.

Revenue from the sale of goods is measured at the transaction price which is consideration

received or receivable, net of returns, Goods and Service Tax (GST) and applicable trade discounts, allowances and chargeback. Revenue includes shipping and handling costs billed to the customer.

In arriving at the transaction price, the Company considers the terms of the contract with the customers and its customary business practices. The transaction price is the amount of consideration the Company is entitled to receive in exchange for transferring promised goods or services, excluding amounts collected on behalf of third parties.

The Company accounts for refund liabilities (sales returns) accrual by recording an allowance for sales returns concurrent with the recognition of revenue at the time of a product sale. This allowance is based on the Company’s estimate of expected sales returns. The Company considers its historical experience of sales returns, levels of inventory in the distribution channel, estimated shelf life, product discontinuances, price changes of competitive products, and the introduction of competitive new products, to the extent each of these factors impact the Company’s business and markets. As required under Ind AS 115, the Company has presented its right to return assets under Other Current Assets and refund liabilities under Other Current Liabilities in the financial statements.

The Company disaggregates revenue from contracts with customers by major Products/ Service lines, geography and timing of the revenue recognition.

Any amount of variable consideration is recognised as revenue only to the extent that it is highly probable that a significant reversal will not occur. The Company estimates the amount of variable consideration using the expected value method.

Income from research services

Income from research services including sale of technology/know-how (rights, licenses and other intangibles) is recognised in accordance with the terms of the contract with customers when the related performance obligation is completed, or when risks and rewards of ownership are transferred, as applicable.

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

398 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

the upfront payments received under these arrangements. Deferred upfront payments are recognised over the period in which the Company has continuing performance obligations.

Income from Export Benefits and Other Incentives

Export benefits and other incentives available under prevalent schemes are accrued as revenue in the year in which the goods are exported and / or services are rendered only when there reasonable assurance that the conditions attached to them will be complied with, and the amounts will be received.

• n) Other Income:

Interest income

Interest income is recognised with reference to the effective interest rate method.

Dividend income

Dividend from investment is recognised as revenue when right to receive is established.

• o) Employee Benefits:

Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided and the Company will have no legal or constructive obligation to pay further amounts. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.

If the contribution payable to the scheme for service received before the reporting date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid.

Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed periodically by an independent

qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses and the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other comprehensive income (OCI). Net interest expense (income) on the net defined liability (asset) is computed by applying the discount rate, used to measure the net defined liability (asset). Net interest expense and other expenses related to defined benefit plans are recognised in Statement of Profit and Loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in Statement of Profit and Loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

Other long-term employee benefits

The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is measured on the basis of a periodical independent actuarial valuation using the projected unit credit method. Remeasurement are recognised in Statement of Profit and Loss in the period in which they arise.

Other Benefit Plans

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The company recognizes expected cost of shortterm employee benefit as an expense, when an employee renders the related service.

The company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial

Corporate Overview Statutory Reports Financial Statements 399

Notes

Forming part of the Standalone Financial Statements

valuation using the projected unit credit method at the reporting date. Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred.

• p) Share-based payment transactions: Employees Stock Options Plans (“ESOPs”): The grant date fair value of options granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. The expense is recorded for each separately vesting portion of the award as if the award was, in substance, multiple awards. The increase in equity recognized in connection with share based payment transaction is presented as a separate component in Other Equity under “Employee Stock Options Outstanding Reserve”. The amount recognized as an expense is adjusted to reflect the actual number of stock options that vest.

Cash-settled Transactions: The cost of cashsettled transactions is measured initially at fair value at the grant date using a Binomial Option Pricing Model. This fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The liability is remeasured to fair value at each reporting date up to, and including the settlement date, with changes in fair value recognised in employee benefits expense. The approach used to account for vesting conditions when measuring equity-settled transactions also applies to cash-settled transactions.

q) Leases:

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company uses the definition of a lease in Ind AS 116.

Company as a lessee

The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative standalone price of the lease component and the aggregate standalone price of the non-lease components.

i) Right-of-Use Assets

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of- use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

ii) Lease Liabilities

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate cannot be readily determined, the Company uses incremental borrowing rate (IBR). The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs when available and is required to make certain entity-specific estimates. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of

400 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.

• iii) Short-term lease and leases of low value assets

The Company has elected not to apply the requirements of Ind AS 116 Leases to shortterm leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

• r) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. If effect of the time value of money is material, provisions are discounted using an appropriate discount rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities are disclosed in the Notes to the Standalone Financial Statements. Contingent liabilities are disclosed for:

• i) possible obligations which will be confirmed only by future events not wholly within the control of the Company, or

• ii) present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognised in the financial statements. A contingent asset is disclosed where an inflow of economic benefits is probable. Contingent assets are assessed continually and, if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

• s) Cash and Cash equivalents:

Cash and cash equivalents comprises cash on hand, cash at bank and short term deposits with an original maturity of three months or less, that are readily convertible into known amounts of cash and subject to insignificant risk of changes in value.

For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

• t) Borrowing costs:

Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds and is measured with reference to the effective interest rate (EIR) applicable to the respective borrowing. Borrowing costs include interest costs measured at EIR and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs, allocated to qualifying assets, pertaining to the period from commencement of activities relating to construction/ development of the qualifying asset up to the date of capitalisation of such asset or upto the date the assets are ready for its intended use are added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

All other borrowing costs are recognized as an expense in the period which they are incurred.

Corporate Overview Statutory Reports Financial Statements 401

Notes

Forming part of the Standalone Financial Statements

u) Government Grants:

Government grants are initially recognised at fair value if there is reasonable assurance that the grant will be received and the Company will comply with the conditions associated with the grant;

• In case of capital grants, they are then recognised in Statement of Profit and Loss as other income on a systematic basis over the useful life of the asset.

• In case of grants that compensate the Company for expenses incurred are recognised in Statement of Profit and Loss on a systematic basis in the periods in which the expenses are recognised.

Export benefits and other incentives available under prevalent schemes are accrued as revenue in the year in which the goods are exported and / or services are rendered only when there reasonable assurance that the conditions attached to them will be complied with, and the amounts will be received.

The Company has received approval under the Production Linked Incentive Scheme of the Government of India for specific product categories. Incentive under the scheme is subject to meeting certain committed investments and defined incremental sales threshold. Such grants are recognised as other operating revenue when there is a reasonable assurance that the Company will comply with all necessary conditions attached to the grant. Income from such grants is recognised on a systematic basis over the periods to which they relate.

v) Earnings per share:

Basic earnings per share is computed by dividing the profit/(loss) after tax by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for the events for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares). Diluted earnings per share is computed by dividing the profit/(loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares. The calculation of diluted earnings per share does

not assume conversion, exercise, or other issue of potential ordinary shares that would have an antidilutive effect on earnings per share.

w) Insurance claims:

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect the ultimate collection.

x) Current vs Non Current:

The Company presents assets and liabilities in the balance sheet based on current / noncurrent classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

1C. RECENT ACCOUNTING PRONOUNCEMENTS:

Ministry of Corporate Affairs (“MCA”) has not notified any new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time which are applicable effective 1[st] April 2024.

402 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

==> picture [451 x 632] intentionally omitted <==

----- Start of picture text -----

(₹ in million) Total 59,413.4 5,094.8 335.9 64,172.3 6,969.3 615.0 7,517.3 63,009.3 25,655.8 4,191.7 288.7 29,558.8 4,320.2 523.4 3,611.2 29,744.4 33,264.9 34,613.5
Office Equipment 1,999.1 170.7 33.3 2,136.5 532.3 136.0 123.8 2,409.0 1,687.1 155.6 33.3 1,809.4 170.4 135.5 103.3 1,741.0 668.0 327.1
Vehicles 82.4 0.1 30.6 51.9 14.4 10.8 - 55.5 57.9 7.0 25.7 39.2 4.6 9.6 - 34.2 21.3 12.7
Fixtures 1,269.1 99.6 5.7 1,363.0 72.1 11.5 140.8 1,282.8 714.5 112.5 5.0 822.0 110.4 9.2 96.7 826.5 456.3 541.0 -
7,737.4 4,719.9 5,077.4 7,379.9
Furniture and
(₹ in million) As at 31.03.2023
Plant and Equipments 37,991.5 4,247.6 258.2 41,980.9 5,265.2 437.6 5,024.1 41,784.4 19,443.7 3,269.7 220.7 22,492.7 3,389.8 354.1 2,950.6 22,577.8 19,206.6 19,488.2
Improvements on Leased Premises 477.7 0.1 2.4 475.4 - 11.5 - 463.9 433.8 4.1 2.4 435.5 1.2 11.5 - 425.2 38.7 39.9 As at 31.03.2024 7,379.9 4,695.1 6,892.3 1,071.5 4,111.2
Buildings 16,609.6 576.7 5.7 17,180.6 1,076.3 7.6 1,846.3 16,403.0 3,318.8 642.8 1.6 3,960.0 643.8 3.5 460.6 4,139.7 12,263.3 13,220.6
Freehold Land 984.0 - - 984.0 9.0 - 382.3 610.7 - - - - - - - - 610.7 984.0
Cost of Buildings includes cost of shares in co-operative societies of ₹ 1,000/- (previous year ₹ 1,000/-). Additions to Property, Plant and Equipment include items aggregating ₹ 406.9 million (previous year ₹ 389.4 million) located at Research and Development Centers of the Company. Refer note 65 for disclosure on Title deeds of all immovable properties not held in the name of the Company. The Company has not revalued any of its Property, Plant and Equipment. Refer note 62 for CWIP ageing and note 37 for details of Expenditure incurred prior to commencement of commercial production.
Particulars At cost or deemed cost As at 01.04.2022 Additions Disposals As at 31.03.2023 Additions Disposals Disposals pursuant to transfer of Business Undertaking (Refer note 49) As at 31.03.2024 Accumulated Depreciation and Impairment As at 01.04.2022 Depreciation charge for the year Disposals As at 31.03.2023 Depreciation charge for the year Disposals Disposals pursuant to transfer of Business Undertaking (Refer note 49) As at 31.03.2024 Carrying amount As at 31.03.2024 As at 31.03.2023 a) b) c) d) 3. Capital Work-In-Progress (CWIP) Particulars Opening Balance Additions during the year Capitalised during the year Disposals pursuant to transfer of Business Undertaking (Refer note 49) Closing Balance a)
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 403

Notes

Forming part of the Standalone Financial Statements

4. Other Intangible Assets

==> picture [485 x 308] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Product
Particulars Computer Related Total
Software
Intangibles
At cost or deemed cost
As at 01.04.2022 496.9 3,591.8 4,088.7
Taken over on Acquisition (Refer note 48b) - 3,001.4 3,001.4
Additions 149.0 50.0 199.0
Disposals 46.1 1,316.5 1,362.6
As at 31.03.2023 599.8 5,326.7 5,926.5
Additions 219.7 3,460.0 3,679.7
Disposals - - -
Disposals pursuant to transfer of Business Undertaking (Refer note 49) 8.5 - 8.5
As at 31.03.2024 811.0 8,786.7 9,597.7
Accumulated Amortisation and Impairment
As at 01.04.2022 217.8 3,144.6 3,362.4
Amortisation charge for the year 78.2 415.4 493.6
Impairment charge for the year - 114.7 114.7
Disposals 46.1 1,280.6 1,326.7
As at 31.03.2023 249.9 2,394.1 2,644.0
Amortisation charge for the year 111.9 615.5 727.4
Impairment charge for the year - 240.2 240.2
Disposals - - -
Disposals pursuant to transfer of Business Undertaking (Refer note 49) 4.8 - 4.8
As at 31.03.2024 357.0 3,249.8 3,606.8
Carrying amount
As at 31.03.2024 454.0 5,536.9 5,990.9
As at 31.03.2023 349.9 2,932.6 3,282.5
----- End of picture text -----

a) The Company has not revalued any of its Intangible Assets.

b) Refer note 48a for Asset Acquisition disclosure.

c) Product related intangibles includes Trademarks and licenses, Dossiers / Marketing rights and Knowhow.

d) Refer note 47 for details of Impairment Loss.

404 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

5. Right-Of-Use Assets (ROU)

==> picture [485 x 263] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Plant & Furniture & Office
Particulars Land Buildings Equipment Fixtures Vehicles Equipment Total
At cost or deemed cost
As at 01.04.2022 1,137.3 1,662.7 26.4 396.3 318.4 8.2 3,549.3
Additions - 267.9 22.0 - 220.5 - 510.4
Disposals - 97.7 26.4 - 100.5 8.2 232.8
As at 31.03.2023 1,137.3 1,832.9 22.0 396.3 438.4 - 3,826.9
Additions - 99.1 6.6 - 191.5 - 297.2
Disposals - 338.5 - 351.6 138.3 - 828.4
Disposals pursuant to transfer of Business Undertaking (Refer note 49) - 0.4 - - 7.0 - 7.4
As at 31.03.2024 1,137.3 1,593.1 28.6 44.7 484.6 - 3,288.3
Accumulated Depreciation
As at 01.04.2022 74.6 667.3 22.0 224.7 134.8 8.0 1,131.4
Depreciation charge for the year 15.3 449.4 8.1 80.9 129.5 0.2 683.4
Disposals - 40.2 26.4 - 77.8 8.2 152.6
As at 31.03.2023 89.9 1,076.5 3.7 305.6 186.5 - 1,662.2
Depreciation charge for the year 15.3 445.6 9.0 80.9 155.2 - 706.0
Disposals - 328.3 - 351.6 113.5 - 793.4
Disposals pursuant to transfer of Business Undertaking (Refer note 49) - 0.3 - - 3.5 - 3.8
As at 31.03.2024 105.2 1,193.5 12.7 34.9 224.7 - 1,571.0
Carrying amount
As at 31.03.2024 1,032.1 399.6 15.9 9.8 259.9 - 1,717.3
As at 31.03.2023 1,047.4 756.4 18.3 90.7 251.9 - 2,164.7
----- End of picture text -----

• a) Refer note 41 for additional disclosure.

• b) Refer note 65 for disclosure on Title deeds of all immovable properties not held in the name of the Company.

• c) The Company has not revalued any of its Right-of-Use assets.

6. Intangible Assets Under Development (IAUD)

6. Intangible Assets Under Development (IAUD)
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Opening Balance	1,886.0 1,737.0
Additions during the year	44.1 278.6
Capitalised during the year	329.3 129.6
Impairment duringtheyear	1,253.7 -
Closing Balance	347.1 1,886.0

• a) Refer note 47 for details of Impairment Loss.

• b) Refer note 63 for IAUD ageing.

7. Non-Current Investments

==> picture [484 x 161] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars Number Face Value As at 31.03.2024 As at 31.03.2023
a. In Subsidiary Companies
Unquoted
i) Equity Shares at Cost (fully paid)
- Nanomi B.V., Netherlands 335,162 USD 1,000 53,206.8 51,508.6
(323,162)
- Lupin Pharmaceuticals, Inc., USA 30 USD 13.8 13.8
(30) 0.001
- Lupin Australia Pty Ltd., Australia 800,000 AUD 33.3 33.3
(800,000)
- Lupin Diagnostics Limited, India 2,616,677 ₹ 81.7 81.7
(formerly known as Lupin Healthcare Limited, India) (2,616,677) 10
- Lupin Atlantis Holdings SA, Switzerland 2,486 CHF 2,993.7 2,993.7
(2,486) 1,000
----- End of picture text -----*

Corporate Overview Statutory Reports Financial Statements 405

Notes

Forming part of the Standalone Financial Statements

==> picture [485 x 632] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars Number Face Value As at 31.03.2024 As at 31.03.2023
- Lupin Biologics Limited, India 150,000 ₹ 1.5 1.5
(150,000) 10
- Lupin Oncology Inc., USA 15,000,000 USD 1,127.8 1,127.8
(15,000,000) 1
- Lupin Digital Health Limited, India 56,532,500 ₹ 1,501.9 1,000.0
(44,582,500) 10
- Lupin Life Sciences Limited, India 100,000 ₹ 1.0 -
(formerly known as Lupin Atharva Ability Limited, India) 10
- Lupin Manufacturing Solutions Limited, India 9,500,000 ₹ 95.0 -
10
ii) Capital Contributions at Cost
- Nanomi B.V., Netherlands 6,385.5 6,385.5
- Lupin Atlantis Holdings SA, Switzerland 29,811.9 29,811.9
iii) Preference Shares at Amortised Cost (fully paid)
- Lupin Diagnostics Limited, India 200,000,000 ₹ 2,000.0 1,961.8
(formerly known as Lupin Healthcare Limited, India) (150,000,000) 10
(0.01% Optionally Convertible Non-cumulative Redeemable
Preference Shares)
Change in classification from Fair Value through Profit or
Loss to Amortised Cost during the year
iv) Unsecured Optionally Convertible Debentures
(fully paid)
- Lupin Diagnostics Limited, India 50,000,000 ₹ 500.0 -
(formerly known as Lupin Healthcare Limited, India) 10
(0.01% Unsecured Optionally Convertible Debentures)
- Lupin Manufacturing Solutions Limited, India 800,000,000 ₹ 8,000.0 -
(0.01% Unsecured Optionally Convertible Debentures) 10
105,753.9 94,919.6
b. In Others
i) In Equity Shares at Fair Value through Profit or Loss
(fully paid)
Unquoted
- Biotech Consortium India Limited, India 50,000 ₹ 0.5 0.5
(50,000) 10
- Enviro Infrastructure Co. Limited, India - ₹ - 1.0
(100,000) 10
- BEIL Infrastructure Limited, India 4,410 ₹
[31.03.2024 - ₹ 44,100/-; 31.03.2023 - ₹ 44,100/-] (4,410) 10
- Narmada Clean Tech Limited, India 1,100,388 ₹ 11.0 11.0
(1,100,388) 10
- Tarapur Environment Protection Society, India 72,358 ₹ 7.2 7.2
(72,358) 100
- Continum Green Energy, India 1,206,400 ₹ 12.1 -
10
- Sai Wardha Power Limited., India 3,007,237 ₹ - -
[Aggregate impairment of ₹ 30.1 million (3,007,237) 10
(previous year ₹ 30.1 million)]
30.8 19.7
ii) Debentures at Fair Value through Profit or Loss (fully paid)
Unquoted
- Continum Green Energy, India 3,432,000 ₹ 34.3 -
(0.0% Optionally Convertible Debentures) 10
34.3 -
iii) In Bonds / Debentures /Securities at Amortised Cost
- Non Convertible Debentures
Quoted
- 6.55% Kotak Mahindra Prime Ltd., India 500 ₹ 522.8 -
1,000,000
----- End of picture text -----

406 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

==> picture [486 x 471] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars Number Face Value As at 31.03.2024 As at 31.03.2023
- 8.25% Kotak Mahindra Prime Ltd., India 500 ₹ 532.2 -
1,000,000
- 7.75% Tata Capital Ltd., India 500 ₹ 526.6 -
1,000,000
- Government Securities
Unquoted
- National Saving Certificates
[Deposited with Government Authority]
[31.03.2024- ₹ 5,500; 31.03.2023 - ₹ 5,500]
1,581.6 -
iv) In Membership Share in LLP, at Fair Value through
Profit or Loss
Unquoted
- ABCD Technologies LLP, India 297.2 406.3
[As at 31.03.2024, the Company had a 6.45%
(31.03.2023 - 6.45%) share of profit/loss and voting rights.
The investment is locked upto April 24, 2024]
- Cleanwin Energy 12 LLP, India 9.9 -
[As at 31.03.2024, the Company had a 26.1%
(31.03.2023 - Nil) share of voting rights.]
- Cleanwin Energy 9 LLP, India 6.0 -
[As at 31.03.2024, the Company had a 26.1%
(31.03.2023 - Nil) share of voting rights.]
- Cleanwin Energy 10 LLP, India 4.5 -
[As at 31.03.2024, the Company had a 26.1%
(31.03.2023 - Nil) share of voting rights.]
317.6 406.3
1,964.3 426.0
Total 107,718.2 95,345.6
Shares do not have face value
a) Aggregate amount of quoted investments and market value thereof
Book value 1,581.6 -
Market value 1,587.6 -
b) Aggregate amount of unquoted investments 106,136.6 95,345.6
c) Aggregate amount of impairment in value of investment 30.1 30.1
d) Previous year numbers are within brackets below current year numbers
8. Non-Current Loans
(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Unsecured, considered good
Loans to Employees (including loan for Housing/Medical/Others) 35.7 40.4
Total 35.7 40.4
----- End of picture text -----*

[There are no non-current loans which have significant increase in credit risk]

9. Other Non-Current Financial Assets

9. Other Non-Current Financial Assets
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured, considered good unless otherwise stated
Security Deposits
- with Related Parties [Refer note 57 (C)]	7.4 7.4
- with Others	629.0 716.4
Earmarked Bank Deposits against guarantees and other commitments	93.0 176.8
Export Benefits receivable / Refund due from Government Authorities	306.4 -
Total	1,035.8 900.6

Corporate Overview Statutory Reports Financial Statements 407

Notes

Forming part of the Standalone Financial Statements

10. Other Non-Current Assets

10. Other Non-Current Assets
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Capital Advances	381.4 1,307.0
Expert Benefit receivable/Balances with Goverment Authorities (Drawback/Customs and Excise duties receivables)	278.4 -
Prepaid Expenses	52.0 81.3
Other Advances (includespaid underprotest)	201.3 201.3
Total	913.1 1,589.6

11. Inventories

==> picture [486 x 192] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Raw Materials 7,979.1 8,556.1
Packing Materials 2,591.6 2,472.3
Work-in-progress 5,676.1 5,902.7
Finished Goods 6,876.6 6,078.5
Stock-in-Trade 3,967.1 4,194.9
Consumable Stores and Spares 2,385.0 2,406.4
Goods-in-Transit
- Raw Materials 393.7 185.9
- Packing Materials 176.8 100.4
- Stock-in-Trade 106.3 290.7
- Consumable Stores and Spares 34.4 6.8
30,186.7 30,194.7
Less: Related to restructuring operations (refer note 49b) 493.6 -
Total 29,693.1 30,194.7
----- End of picture text -----

During the year, the Company recorded inventory write-downs of ₹ 2,278.6 million (previous year ₹ 2,803.1 million). These adjustments were included in cost of material consumed and changes in inventories.

12. Current Investments

==> picture [486 x 196] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
- Measured at Amortised Cost
Quoted
In Non Convertible Debentures 506.9 -
In Commercial Papers 2,416.4 -
- Measured at Fair Value through Profit or Loss
Unquoted
In Mutual Funds 5,165.2 4,397.7
Total 8,088.5 4,397.7
a) Aggregate amount of quoted investments and market value thereof
Book value 2,923.3 -
Market value 2,948.1 -
b) Aggregate amount of unquoted investments 5,165.2 4,397.7
- -
c) Aggregate amount of impairment in value of investment
- -
d) Unrealised Loss on Mutual Fund Investments (net) as adjusted above
----- End of picture text -----

408 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

13. Trade Receivables

==> picture [486 x 113] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Unsecured
- Considered Good 39,684.7 26,898.7
- Credit Impaired 105.2 94.1
39,789.9 26,992.8
Less : Allowances for credit losses 385.1 248.6
39,404.8 26,744.2
Less: Related to restructuring operations (refer note 49b) 983.3 -
Total 38,421.5 26,744.2
----- End of picture text -----

Refer note 60 for Trade Receivable ageing. [There are no other trade receivables which have significant increase in credit risk. Refer note 53 (C) for information about credit risk and market risk of trade receivables] Trade receivables include debts due from subsidiary companies ₹ 28,836.6 million (31.03.2023 ₹ 16,040.1 million) [Refer note 57 (C)].

14. Cash And Cash Equivalents

14. Cash And Cash Equivalents
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Bank Balances
- In Current Accounts	1,083.0 792.6
- In EEFC Account	74.8 28.9
Cheques on hand	70.9 27.6
Cash on hand	8.3 7.5
Total	1,237.0 856.6

15. Other Bank Balances

15. Other Bank Balances
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Earmarked Balances with Banks
- Unpaid dividend accounts	34.4 42.0
- Deposits againstguarantees and other commitments	115.0 111.1
Total	149.4 153.1

16. Current Loans

16. Current Loans
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured, considered good
Loans to Employees (includingloan for Housing/Medical/Others)	24.7 20.6
Total	24.7 20.6

[There are no current loans which have significant increase in credit risk]

17. Other Current Financial Assets

17. Other Current Financial Assets
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured, considered good
Receivables from Related Parties [Refer note 57 (C)]	743.8 300.6
Export Benefits receivable / Refund due from Government Authorities	4,718.1 3,150.9
Security Deposits	193.1 41.1
Others	147.6 200.5
Total	5,802.6 3,693.1

Corporate Overview Statutory Reports Financial Statements 409

Notes

Forming part of the Standalone Financial Statements

18. Other Current Assets

==> picture [486 x 152] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Advances to Employees 113.8 93.6
Advances to Vendors
- Considered Good 1,902.0 1,306.1
- Credit Impaired 77.0 159.1
1,979.0 1,465.2
Less : Impairment Allowances for Credit Impaired 77.0 159.1
1,902.0 1,306.1
Prepaid Expenses 345.2 392.4
Export Benefits receivable / Balances with Government Authorities (GST credit / VAT/ Cenvat /
Service tax / refund receivable) 5,572.6 7,804.9
Assets Recoverable From Customers 51.4 52.2
Total 7,985.0 9,649.2
----- End of picture text -----

19. Equity Share Capital

a) Equity Share Capital

==> picture [486 x 80] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 As at 31.03.2023
Particulars
No. of Shares ₹ in million No. of Shares ₹ in million
Authorised
Equity Shares of ₹ 2 each 1,000,000,000 2,000.0 1,000,000,000 2,000.0
Issued, Subscribed and Paid up
Equity Shares of ₹ 2 each fully paid 455,678,908 911.4 454,981,335 910.0
Total 455,678,908 911.4 454,981,335 910.0
----- End of picture text -----

• b) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period

==> picture [486 x 62] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 As at 31.03.2023
Particulars
No. of Shares ₹ in million No. of Shares ₹ in million
Equity Shares outstanding at the beginning of the year 454,981,335 910.0 454,475,014 909.0
Equity Shares issued during the year pursuant to exercise of 697,573 1.4 506,321 1.0
ESOPs
Equity Shares outstanding at the end of the year 455,678,908 911.4 454,981,335 910.0
----- End of picture text -----

c) Rights attached to Equity Shares

The Company has only one class of equity shares with voting rights having a par value of ₹ 2 per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting.

During the year ended March 31, 2024, the amount of dividend per equity share distributed to equity shareholders is ₹ 4 (Previous year ended March 31, 2023, ₹ 4).

In the event of liquidation of the Company, the shareholders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

d) Details of shares held by each shareholder holding more than 5% equity shares

==> picture [486 x 64] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 As at 31.03.2023
Name of Shareholder No. of Shares Percentage of No. of Shares Percentage of
Holding Holding
Lupin Investments Private Limited 207,194,390 45.47 207,194,390 45.54
Life Insurance Corporation of India 26,758,302 5.87 37,448,551 8.23
ICICI Prudential Bluechip Fund 19,644,902 4.31 26,136,991 5.74
----- End of picture text -----

410 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

• e) Shares held by promoters at the end of the year

==> picture [486 x 174] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 As at 31.03.2023
Promoter name No. of Shares % of total % Change No. of Shares % of total % Change
shares during the year shares during the year
D. B. Gupta HUF 647,580 0.14 - 647,580 0.14 -
Manju D. Gupta 3,871,162 0.85 - 3,871,162 0.85 -
Nilesh D. Gupta 901,064 0.20 - 901,064 0.20 -
Kavita Gupta 200,170 0.04 - 200,170 0.04 -
Veda Nilesh Gupta 72,954 0.02 4.03 70,129 0.02 6.29
Neel Deshbandhu Gupta 28,278 0.01 8.73 26,008 0.01 18.99
Shefali Nath Gupta 1,752 0.00 - 1,752 0.00 -
Lupin Investments Private Limited 207,194,390 45.47 - 207,194,390 45.54 0.77
Manju D. Gupta (As a Trustee of Gupta Family Trust) 1,000 0.00 - 1,000 0.00 -
Vinita Gupta 327,424 0.07 - 327,424 0.07 -
Anuja Gupta 725,705 0.16 - 725,705 0.16 -
Richa Gupta 233,265 0.05 - 233,265 0.05 -
----- End of picture text -----

• f) Shares reserved for issuance under Stock Option Plans of the Company

==> picture [486 x 114] intentionally omitted <==

----- Start of picture text -----

As at 31.03.2024 As at 31.03.2023
Particulars
No. of Shares ₹ in million No. of Shares ₹ in million
Lupin Employees Stock Option
Plan 2003 61,739 0.1 78,705 0.2
Plan 2005 6,950 0.0 8,350 0.0
Plan 2011 644,172 1.3 806,452 1.6
Plan 2014 584,852 1.2 848,347 1.7
Lupin Subsidiary Companies Employees Stock Options
Plan 2011 533,274 1.1 595,618 1.2
Plan 2014 1,040,352 2.1 1,237,780 2.5
----- End of picture text -----

• g) Aggregate number of shares issued during last five years pursuant to Stock Option Plans of the Company

Particulars	As at 31.03.2024 Aggregate No. of Shares	As at 31.03.2023 Aggregate No. of Shares
EquityShares issued under various Stock Option Plans of the Company	3,185,211	2,898,485

• h) No shares have been allotted without payment being received in cash or by way of bonus shares during the period of five years immediately preceding the Balance Sheet date.

20. Other Non-Current Financial Liabilities

period of five years immediately preceding the Balance Sheet date. 20. Other Non-Current Financial Liabilities
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Payable on Purchase of Non-Current Investment	91.3 175.0
Employee Benefits Payables	343.6 109.1
Total	434.9 284.1

21. Non-Current Provisions

21. Non-Current Provisions
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Provisions for Employee Benefits [Refer note 27]
Gratuity [Refer note 43 (ii) A]	2,191.0 1,959.0
Compensated Absences	830.6 924.6
Provident Fund [Refer note 43 (ii) B]	276.0 279.7
Total	3,297.6 3,163.3

Corporate Overview Statutory Reports Financial Statements

411

Notes

Forming part of the Standalone Financial Statements

22. Other Non-Current Liabilities

22. Other Non-Current Liabilities
		(₹ in million)
Particulars	As at 31.03.2024	As at 31.03.2023
Deferred Revenue [Refer note 38 (d)]	536.4	491.0
Total	536.4	491.0

23. Current Borrowings

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Unsecured
Loans from Banks	181.3 6,134.6
Total	181.3 6,134.6

a) Unsecured Loans comprise of Working Capital Loan carrying interest rate in range 6.90% to 9.20%.

b) Current borrowings are repayable within 12 months

c) The Company has not defaulted on repayment of loans and interest during the year.

d) The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of account.

24. Trade Payables

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Total outstanding dues of Micro Enterprises and Small Enterprises [Refer note 52]	751.2 736.5
Total outstanding dues of Other than Micro Enterprises and Small Enterprises	19,981.6 14,926.4
	20,732.8 15,662.9
Less: Related to restructuringoperations (Refer note 49b)	370.1 -
Total	20,362.7 15,662.9

Refer note 61 for Trade Payable ageing.

25. Other Current Financial Liabilities

==> picture [486 x 147] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Unpaid Dividend * 34.4 42.0
Derivative Liabilities [Refer note 55]
- Forward Contracts - 52.7
Payable for Capital Expenditure 700.3 444.7
Payable on Purchase of Non-Current Investment 92.1 86.8
Trade Deposits received 129.3 116.8
Employee Benefits Payables 2,173.7 1,831.0
Other Payables (Includes donation payable, retention money, etc.) 252.9 1.9
3,382.7 2,575.9
Less: Related to restructuring operations (Refer note 49b) 104.6 -
Total 3,278.1 2,575.9
----- End of picture text -----

*During the year, ₹ 9.1 million has been credited to Investor Education and Protection Fund relating to FY 15-16.

26. Other Current Liabilities

==> picture [486 x 113] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Statutory Dues Payables (includes GST, Provident Fund, Withholding Taxes etc.) 1,133.4 887.7
Refund Liabilities 2,239.8 1,921.4
Deferred Revenue [Refer note 38 (d)] 90.3 83.2
Deferred Government Grant 32.7 106.7
Advances from customers 227.7 86.2
3,723.9 3,085.2
Less: Related to restructuring operations (Refer note 49b) 0.5 -
Total 3,723.4 3,085.2
----- End of picture text -----

412 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

27. Current Provisions

27. Current Provisions
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Provisions for Employee Benefits [Refer note 21]
Gratuity [Refer note 43 (ii) A]	433.0 386.0
Compensated Absences	364.9 422.6
Other Provisions
For European Commission fine [Refer note 50]	4,156.4 4,077.5
Total	4,954.3 4,886.1

28. Revenue From Operations

==> picture [486 x 164] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Sale [Refer note 38]
Goods 139,531.1 107,797.8
Research Services 3,633.2 2,632.9
143,164.3 110,430.7
Other Operating Revenue
Export Benefits and Other Incentives 2,989.0 1,417.8
Insurance Claims 111.0 70.1
Business Compensation and Settlement Income 67.1 240.7
Scrap Sales 191.9 184.9
Miscellaneous Income 141.7 244.1
3,500.7 2,157.6
Total 146,665.0 112,588.3
----- End of picture text -----

29. Other Income

==> picture [486 x 198] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Income on Financial Assets carried at amortised cost
Interest on Deposits with Banks 0.5 0.6
Interest on Commercial Papers, Debentures and others 61.0 70.5
Interest from Related parties:
- on Unsecured Optionally Convertible Debentures 0.1 -
- on Short term loans and advances 1.5 -
- on Delayed payment charges 98.5 -
Income on Financial Assets carried at fair value through profit or loss
Net gain on Sale of Mutual Fund Investments 283.8 117.1
Unrealised Gain on Mutual Fund Investments (net) 53.8 14.1
Unrealised Gain on Non-Current Investment (109.0) 349.3
Profit on Divestment of Business undertaking (Refer note 49) 6.4 -
Profit on Sale of Property, Plant and Equipment / Intangible Assets (net) - 61.7
Miscellaneous Income (including Interest on Income Tax Refund) 670.7 299.3
Total 1,067.3 912.6
----- End of picture text -----

30. Cost Of Materials Consumed

30. Cost Of Materials Consumed
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Raw Materials Consumed	25,935.0 25,539.4
PackingMaterials Consumed	8,138.0 5,972.6
Total	34,073.0 31,512.0

Corporate Overview Statutory Reports Financial Statements 413

Notes

Forming part of the Standalone Financial Statements

31. Changes In Inventories Of Finished Goods, Work-In-Progress And Stock-In-Trade [(Increase)/Decrease]

==> picture [486 x 209] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Opening Stock:
Finished Goods 6,078.5 6,605.8
Stock-in-Trade 4,485.6 5,363.2
Work-in-Progress 5,902.7 5,705.7
16,466.8 17,674.7
Less:
Closing Stock:
Finished Goods 6,876.6 6,078.5
Stock-in-Trade 4,073.4 4,485.6
Work-in-Progress 5,676.1 5,902.7
16,626.1 16,466.8
Changes In Inventories:
Finished Goods (798.1) 527.3
Stock-in-Trade 412.2 877.6
Work-in-Progress 226.6 (197.0)
Total (159.3) 1,207.9
----- End of picture text -----

32. Employee Benefits Expense

32.Employee Benefits Expense
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Salaries and Wages	17,734.3 16,701.6
Contribution to Provident and Other Funds	1,526.9 1,404.2
Retirement Benefits Expense	136.2 131.1
Share Based Payments Expense [Refer note 42]	837.7 381.7
Staff Welfare Expenses	720.0 722.8
Total	20,955.1 19,341.4

33. Finance Costs

33.Finance Costs
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Interest on Financial Liabilities - borrowing carried at amortised cost	43.5 475.3
Net Interest on net defined benefit liability	270.8 258.1
Interest cost on Finance lease obligation [Refer note 41]	84.2 120.6
Other Borrowing Costs	139.9 130.4
Interest on Income Tax	25.1 -
Total	563.5 984.4

34. Other Expenses

34.Other Expenses
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Processing Charges	719.3 746.1
Stores and Spares Consumed	4,110.6 4,018.4
Repairs and Maintenance:
- Buildings	246.6 292.2
- Plant and Machinery	1,310.4 1,310.1
- Others	2,022.8 1,912.4
Rent and Other Hire Charges [Refer note 41]	513.8 572.5
Rates and Taxes	1,164.9 1,220.6

414 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

==> picture [486 x 266] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Insurance 767.4 728.2
Power and Fuel 4,444.1 4,474.2
Contract Labour Charges 1,275.4 1,145.8
Selling and Promotion Expenses 4,837.1 3,860.3
Commission and Brokerage 1,264.4 1,125.1
Freight and Forwarding 830.1 838.7
Postage and Telephone Expenses 248.6 244.4
Travelling and Conveyance 3,058.3 2,263.2
Legal and Professional Charges [Refer note 46 for Auditor's remuneration] 9,960.8 7,085.0
[Net of recoveries of ₹ 16.2 million (previous year ₹ 121.1 million)]
Donations [Refer note 67] 288.7 206.7
Clinical and Analytical Charges 2,140.1 2,131.0
Loss on Sale / Write-off of Property, Plant and Equipment / Intangible Assets (net) 2.4 -
Bad Trade Receivables / Advances written off 0.2 6.8
[Net of provision of earlier years adjusted ₹ 133.8 million (previous year ₹ 31.6 million)]
Impairment Allowances for Doubtful Trade Receivables / Advances (net) 168.5 106.8
Corporate Social Responsibility Expenses [Refer note 51] 252.6 290.3
Directors Sitting Fees 1.2 1.6
Business Compensation and Settlement Expenses 33.3 270.7
Miscellaneous Expenses 1,293.2 779.9
Total 40,954.8 35,631.0
----- End of picture text -----

35. Commitments

• a) Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advances, ₹ 2,440.0 million (31.03.2023 ₹ 2,195.0 million).

• b) Equity commitment in subsidiaries amounting to ₹ 498.1 million (31.03.2023 ₹ 1,232.6 million) and other commitments in subsidiaries amounting to ₹ 2,465.0 million (31.03.2023 ₹ 500.0 million).

• c) Other commitments – Non-cancellable short-term leases is ₹ Nil (31.03.2023 ₹ 3.4 million). Low value leases is ₹ 19.3 million (31.03.2023 ₹ 53.1 million).

• d) Dividends proposed of ₹ 8/- (31.03.2023 ₹ 4/-) per equity share is subject to the approval of the shareholders of the Company at the Annual General Meeting, but not recognised as a liability in the financial statements is ₹ 3,646.0 million (31.03.2023 ₹ 1,820.1 million).

• e) There are product supply commitments pursuant to contracts with various customers under dossier agreements.

• f) There are product procurement commitments pursuant to contracts with suppliers under supply agreements.

• g) Financial and corporate guarantees issued by the Company on behalf of subsidiaries are disclosed in note 36.

36. Contingent Liabilities

==> picture [486 x 196] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
a) Income tax demands/matters on account of deductions/allowances in earlier years, pending 1,774.7 1,770.2
in appeals and potential tax demands in future years in respect of some uncertain tax issues
[₹ 355.7 million (31.03.2023 ₹ 353.9 million) consequent to department preferring appeals
against the orders of the Appellate Authorities passed in favour of the Company].
Amount paid there against and included under ”Non-Current Tax Assets (Net) and Current
Tax Liabilities (Net)” ₹ 1,361.3 million (31.03.2023 ₹ 1,360.3 million).
b) Customs Duty, Excise duty, Service tax and Sales tax demands for input tax credit 164.4 127.7
disallowances and demand for additional Entry Tax arising from dispute on applicable rate
are in appeals and pending decisions. Amount paid there against and included under note 10
“Other Non-Current Assets” ₹ 22.3 million (31.03.2023 ₹ 23.9 million).
c) Claims against the Company not acknowledged as debts [excluding interest (amount 1,083.2 2,039.3
unascertained) in respect of a claim] for transfer charges of land, octroi duty, local body tax,
employee claims, power, trademarks, pricing and stamp duty.
Amount paid there against without admitting liability and included under note 10 “Other
Non-Current Assets” ₹ 154.6 million (31.03.2023 ₹ 154.6 million).
Demand raised by Maharashtra State Electricity Development Corporation Limited (MSEDCL)
challenging Group Captive Generating Plant (GCGP) status of power supplier's plant at
Tarapur and Pune location.
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 415

Notes

Forming part of the Standalone Financial Statements

==> picture [486 x 52] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
d) Outstanding credit facilities against corporate guarantees given in respect of credit facilities 26,281.9 32,454.5
sanctioned by bankers of subsidiary companies for the purpose of acquisitions, working capital
and other business requirements aggregating ₹ 34,536.2 million (31.03.2023 ₹ 35,295.3 million).
----- End of picture text -----

• e) Financial guarantee aggregating to ₹ 5,584.7 million (31.03.2023 ₹ 5,502.1 million) given to third party on behalf of subsidiaries for contractual obligations.

• f) From time to time, Lupin Inc. (LI) and its subsidiaries are involved in various intellectual property claims and legal proceedings, which are considered normal to its business, the liability, if any, may fall on Lupin Limited. Some of this litigation has been resolved through settlement.

Future cash outflows in respect of the above, if any, is determinable only on receipt of judgment/decisions pending with the relevant authorities or settlement, as the case may be. The Company does not expect the outcome of the matters stated above to have a material adverse impact on the Company’s financial condition, results of operations or cash flows. The Company believes that the probability of outflow is low to moderate considering the merits of the cases and stages of the litigation.

The Company does not envisage any likely reimbursements in respect of the above.

The Company is involved in various legal proceedings, including product liability related claims, employment claims and other regulatory matters relating to conduct of its business. The Company carries product liability insurance policy with an amount it believes is sufficient for its needs. In respect of other claims, the Company believes that the probability of outflow is low to moderate considering the merits of the case and the ultimate disposition of these matters may not have material adverse effect on its Financial Statements.

37. Pre-Operative Expenses

Expenditure incurred prior to commencement of commercial production included in Capital Work-In-Progress represent direct attributable expenditure for setting up of plants. The same will be capitalised on completion of projects and commencement of commercial operations. The details of the pre-operative expenses are:

==> picture [486 x 147] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Opening balance 401.0 388.6
Incurred during the year:
Salaries, allowances and contribution to funds 91.5 94.4
Legal and Professional Charges 0.1 -
Travelling and Conveyance 10.3 7.6
Power and fuel 0.4 2.1
Others 11.0 16.8
Total incurred during the year 113.3 120.9
Less: Capitalised during the year 350.2 108.5
Less: Reduction pursuant to transfer of Business Undertaking 42.8 -
Closing balance 121.3 401.0
----- End of picture text -----

38. Revenue (Ind AS 115)

• a) The operations of the Company are limited to only one segment viz. pharmaceuticals and related products. Revenue from contract with customers is from sale of manufactured goods and rendering of research services.

Payment terms with customers vary depending upon the contractual terms of each contract and does not have any significant financing component.

i) Sale of pharmaceutical goods

Sale of goods are made at a point in time and revenue is recognised upon satisfaction of the performance obligations which is typically upon dispatch/delivery depending on the terms of the sale. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established. There is no significant financing component as the credit period provided by the Company is not significant.

Variable components such as discounts, chargebacks, rebates, refund liabilities etc. continues to be recognised as deductions from revenue in compliance with Ind AS 115.

ii) Income from research services and sale of IPs

Income from research services including sale of technology/know-how (rights, licenses and other intangibles) is recognized in accordance with the terms of the contract with customers when the related performance obligation is completed.

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

416 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

b) Disaggregation of revenue:

==> picture [486 x 175] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Nature of segment 31.03.2024 31.03.2023
A. Service line:
- Sale of pharmaceutical goods 139,531.1 107,797.8
- Income from research services and sale of IPs 3,633.2 2,632.9
Total revenue from contracts with customers 143,164.3 110,430.7
B. Primary geographical market:
- India 69,342.3 64,100.4
- USA 44,758.6 25,403.2
- Others 29,063.4 20,927.1
Total revenue from contracts with customers 143,164.3 110,430.7
C. Timing of the revenue recognition:
- Goods/Services transferred at a point in time 139,978.9 108,920.5
- Services transferred over time 3,185.4 1,510.2
Total revenue from contracts with customers 143,164.3 110,430.7
----- End of picture text -----

c) Reconciliation of revenue as per contract price and as recognised in statement of profit and loss:

Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Revenue as per contracted price	147,293.6 113,416.7
Adjusted for:
- Refund Liabilities	3,457.8 2,381.0
- Discounts / Chargebacks / Rebates and Others	671.5 605.0
Total revenue from contracts with customers	143,164.3 110,430.7

d) Reconciliation of revenue recognised from Deferred Revenue:

d) Reconciliation of revenue recognised from Deferred Revenue:
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Balance in contract liability at the beginning of the year that was not recognized as revenue	574.2 317.6
Add: Increases due to cash received during the year excluding amounts recognized as revenue during the year	253.7 416.2
Less: Revenue recognized duringtheyear	201.2 159.6
Balance in contract liability at the end of theyear that is not recognized as revenue	626.7 574.2

The revenue from the major customer is ₹ 26,590.1 million (31.03.2023 ₹ 17,602.7 million) which is more than 10% of the total revenue from operations of the Company.

39. Segment Reporting

The Company has presented data relating to its segments based on its Consolidated Financial Statements which are presented in the same Integrated Annual Report. Accordingly in terms of paragraph 4 of the Ind AS 108 “Operating Segments”, no disclosures related to segments are presented in these Standalone Financial Statements.

40. Basic and Diluted Earnings per Share is calculated as under

==> picture [486 x 114] intentionally omitted <==

----- Start of picture text -----

Year ended Year ended
Particulars
31.03.2024 31.03.2023
Profit/(Loss) attributable to Equity Shareholders (₹ in million) 23,260.9 4,252.1
Weighted average number of Equity Shares:
- Basic 455,240,464 454,692,962
Add: Dilutive effect of employees stock options (ESOPs) - converted during the year and ESOPs
1,985,533 2,254,024
outstanding as at the year end
- Diluted 457,225,997 456,946,986
Earnings per Share (in ₹)
- Basic 51.10 9.35
- Diluted 50.87 9.31
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 417

Notes

Forming part of the Standalone Financial Statements

41. Leases

The Company leases land, building, plant & equipment, furniture & fixtures, vehicles and office equipment. The leases typically run for the period between 12 months to 60 months with an option to renew the lease after that date.

A) Information about leases for which the Company is lessee is presented below:

i) Lease liabilities

i) Lease liabilities
Particulars	(₹ in million) Land Buildings Plant & Equipment Furniture & Fixtures Vehicles Office Equipment Total
Balance as at 01.04.2023	114.5 855.2 18.6 105.1 257.2 - 1,350.5
Addition	- 99.2 6.6 - 191.4 - 297.2
Accreditation of interest (Refer note 33)	9.0 47.9 1.5 4.5 21.3 - 84.2
Payments	(7.5) (535.5) (10.2) (98.8) (174.3) - (826.3)
Adjustments for Disposals	- (15.4) - - (22.0) - (37.4)
Balance as at 31.03.2024	116.0 451.4 16.5 10.8 273.6 - 868.0
Current	4.0 289.8 9.3 8.7 126.9 - 438.7
Non-current	112.0 161.6 7.2 2.1 146.5 - 429.3

Particulars	(₹ in million) Land Buildings Plant & Equipment Furniture & Fixtures Vehicles Office Equipment Total
Balance as at 01.04.2022	112.9 1,105.8 4.9 191.6 188.3 0.3 1,603.8
Addition	- 267.9 22.0 - 220.5 - 510.4
Accreditation of interest (Refer note 33)	8.9 80.4 0.8 12.3 18.2 - 120.6
Payments	(7.4) (538.7) (9.1) (98.8) (147.0) (0.3) (801.3)
Adjustments for Disposals	- (60.2) - - (22.8) - (83.0)
Balance as at 31.03.2023	114.5 855.2 18.6 105.1 257.2 - 1,350.5
Current	4.7 473.2 7.1 94.3 120.2 - 699.5
Non-current	109.7 382.0 11.5 10.8 137.0 - 651.0

The maturity analysis of the lease liability is included in Note no.iii - Financial risk management objectives and policies under maturities of financial liabilities.

ii) Amounts recognised in Profit and Loss

ii) Amounts recognised in Profit and Loss
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Depreciation expense of right-of-use assets (Refer Note No. 5)	706.0 683.4
Interest expense on lease liabilities (Refer Note No. 33)	84.2 120.6
Expense relating to short-term leases (Refer Note No. 34)	3.0 12.5
Expense relating to low value leases (Refer Note No. 34)	152.9 195.9
Total	945.9 1,012.5

iii) Financial risk management

Maturities of financial liabilities:

The table below analyze the Company’s financial liabilities into relevant maturity analysis based on their contractual maturities for all financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

			(₹ in million)	(₹ in million)
Contractual maturities of financial liabilities	Less than 1 Year	1 to 5 Year	More than 5 Year	Total
As at 31.03.2024
Lease liabilities As at 31.03.2023 Lease liabilities	478.5 758.4	366.8 591.3	1,511.8 -	2,357.1 1,349.7

iv) Commitments and contingencies

The Company has not entered into lease contracts that have not yet commenced as at 31.03.2024.

418 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

B) Information about leases for which the Company is lessor is presented below :

During the previous year, the Company had given on operating lease, a part of it’s office premises forming part of Property, Plant and Equipment to two of its wholly owned subsidiaries.

i) Amounts recognised in Profit and Loss:

		(₹ in million)
Particulars	Year ended 31.03.2024	Year ended 31.03.2023
Lease Rental Income (Included in Miscellaneous Income under note 29)	12.7	1.5
Total	12.7	1.5

ii) Financial risk management

Maturities of financial liabilities:

The table below analyze the Company’s lease income into relevant maturity analysis based on their contractual maturities for all the leases. The amounts disclosed in the table are the contractual undiscounted cash inflows.

			(₹ in million)	(₹ in million)
Contractual maturities of financial liabilities	Less than 1 Year	1 to 5 Year	More than 5 Year	Total
As at 31.03.2024
Lease Income As at 31.03.2023 Lease Income	21.8 6.0	69.2 12.0	- -	91.0 18.0

42. Share-based Payment Arrangements

(i) Employee stock options – equity settled

The Company implemented “Lupin Employees Stock Option Plan 2003” (ESOP 2003), “Lupin Employees Stock Option Plan 2005” (ESOP 2005), “Lupin Subsidiary Companies Employees Stock Option Plan 2005” (SESOP 2005), “Lupin Employees Stock Option Plan 2011” (ESOP 2011), “Lupin Subsidiary Companies Employees Stock Option Plan 2011” (SESOP 2011), “Lupin Employees Stock Option Plan 2014” (ESOP 2014) and “Lupin Subsidiary Companies Employees Stock Option Plan 2014” (SESOP 2014) in earlier years, as approved by the Shareholders of the Company and the Nomination and Remuneration Committee of the Board of Directors (the Committee).

The Committee determines which eligible employees will receive options, the number of options to be granted, the vesting period and the exercise period. The options are granted at an exercise price, which is in accordance with the relevant SEBI guidelines in force, at the time of such grants. Each option entitles the holder to exercise the right to apply for and seek allotment of one equity share of ₹ 2 each. The options issued under the above schemes vest in a phased manner after completion of the minimum period of one year upto four years with an exercise period of ten years from the respective grant dates.

Category A - Fair Market Value Options (comprising of options granted under ESOP 2003, ESOP 2005, ESOP 2011, SESOP 2011 and SESOP 2014)

2011 and SESOP 2014)
				Year Ended 31.03.2024
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	1,175,495	556.1-1,521.7	1,228.7	0.9
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	- 341,932 96,618 736,945 736,945	- 556.1-1,521.7 556.1-556.1 873.5-1,521.7 864.8-1,521.7	- 1,025.8 1,024.0 1,349.6 1,349.6	- NA NA 1.5 1.5
				Year Ended 31.03.2023
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	1,389,971	556.1-1,521.7	1,192.8	1.8
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	- 181,294 33,182 1,175,495 1,175,495	- 556.1-1,521.7 556.1-556.1 873.5-1,521.7 864.8-1,521.7	- 1,066.7 556.1 1,230.1 1,220.9	- NA NA 1.9 1.9

The weighted average grant date fair value of the options granted under Category A during the years ended 31.03.2024 and 31.03.2023 was ₹ nil and ₹ nil per option, respectively.

Corporate Overview Statutory Reports Financial Statements 419

Notes

Forming part of the Standalone Financial Statements

Category B - Par Value Options (comprising of options granted under ESOP 2011, SESOP 2011, ESOP 2014 and SESOP 2014)

				Year Ended 31.03.2024
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	2,036,836	2.0	2.0	7.0
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	283,417 156,189 550,955 1,613,109 528,623	2.0 2.0 2.0 2.0 2.0	2.0 2.0 2.0 2.0 2.0	9.7 NA NA 7.7 5.9
				Year Ended 31.03.2023
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	2,014,478	2.0	2.0	7.1
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	677,264 181,767 473,139 2,036,836 567,520	2.0 2.0 2.0 2.0 2.0	2.0 2.0 2.0 2.0 2.0	9.7 NA NA 8.1 6.3

The weighted average grant date fair value of the options granted under Category B during the years ended 31.03.2024 and 31.03.2023 was ₹ 1,173.1 and ₹ 722.6 per option, respectively.

Category C - Discounted Fair Market Value Options (comprising of options granted under ESOP 2011)

				Year Ended 31.03.2024
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	50,000	891.5-891.5	891.5	2.6
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	- - 50,000 - -	- - - 891.5-891.5 891.5-891.5	- - 891.5 - -	- NA NA - -
				Year Ended 31.03.2023
Particulars	Shares arising out of options (Nos.)	Range of exercise prices (₹)	Weighted average exercise price (₹)	Weighted average remaining contractual life (Yrs)
Options outstanding at the beginning of the year	50,000	891.5-891.5	891.5	2.6
Add: Options granted during the year Less: Options lapsed during the year Less: Options exercised during the year Options outstanding at the year end Exercisable at the end of theyear	- - - 50,000 50,000	- - - 891.5-891.5 891.5-891.5	- - - 891.5 891.5	- NA NA 2.6 2.6

The weighted average grant date fair value of options granted under Category C during the years ended 31.03.2024 and 31.03.2023 was ₹ nil and ₹ nil per option, respectively.

The weighted average share price during the years ended 31.03.2024 and 31.03.2023 was ₹ 1,140.5 and ₹ 692.7 per share respectively.

Valuation of stock options

The fair value of stock options granted during the period has been measured using the Black–Scholes option pricing model at the date of the grant. The Black-Scholes option pricing model includes assumptions regarding dividend yields, expected volatility, expected terms and risk free interest rates. The key inputs and assumptions used are as follows:

Share price: The closing price on NSE as on the date of grant has been considered for valuing the options granted.

Exercise Price: Exercise Price is the market price or face value or such other price as determined by the Nomination and Remuneration Committee.

420 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

Expected Volatility: The historical volatility of the stock till the date of grant has been considered to calculate the fair value of the options.

Expected Option Life: Expected Life of option is the period for which the Company expects the options to be live. The minimum life of a stock option is the minimum period before which the options cannot be exercised and the maximum life is the period after which the options cannot be exercised.

Expected dividends: Expected dividend yield has been calculated as an average of dividend yields for four years preceding the date of the grant.

Risk free interest rate: The risk free interest rate on the date of grant considered for the calculation is the interest rate applicable for a maturity equal to the expected life of the options based on the zero coupon yield curve for Government Securities.

These assumptions reflect management’s best estimates, but these assumptions involve inherent market uncertainties based on market conditions generally outside of the Company’s control. As a result, if other assumptions had been used in the current period, stock-based compensation expense could have been materially impacted. Further, if management uses different assumptions in future periods, stock based compensation expense could be materially impacted in future years. The estimated fair value of stock options is charged to income on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards.

The weighted average inputs used in computing the fair value of options granted were as follows:

Weighted average information – Year ended 31.03.2024

Category	Grant date	Exercise price (₹)	Risk free rate (%)	Expected life (years)	Expected Volatility (%)	Dividend yield (%) Weighted average share price (₹)	Weighted Option Fair Value (₹)
B B B B B B	04.05.2023 28.07.2023 28.07.2023 12.12.2023 12.12.2023 12.12.2023	2 2 2 2 2 2	6.60% 6.80% 6.70% 6.90% 6.90% 6.90%	2.6 6.3 2.6 6.3 6.3 2.6	29.9% 30.8% 29.5% 30.4% 30.4% 25.1%	0.60% 709.9 0.60% 974.0 0.60% 974.0 0.60% 1,240.2 0.60% 1,240.2 0.60% 1,240.2	697.8 938.1 957.9 1,193.3 1,193.3 1,219.5
Category B	Weighted Average Option Fair Value 1,173.1					Weighted Average Share Price 1,204.0

Weighted average information – Year ended 31.03.2023

Category	Grant date	Exercise price (₹)	Risk free rate (%)	Expected life (years)	Expected Volatility (%)	Dividend yield (%) Weighted average share price (₹)	Weighted Option Fair Value (₹)
B	25.04.2022	2	6.58%	6.3	31.3%	0.60% 725.4	696.1
B B B B B B B B B B	19.07.2022 19.07.2022 21.11.2022 21.11.2022 21.11.2022 12.12.2022 12.12.2022 12.12.2022 30.01.2023 20.02.2023	2 2 2 2 2 2 2 2 2 2	6.98% 6.33% 6.99% 6.99% 6.99% 7.00% 7.01% 6.63% 6.78% 6.83%	6.3 2.6 6.3 6.3 6.3 6.3 6.3 2.6 2.6 2.6	31.4% 32.2% 31.2% 31.2% 31.2% 31.2% 31.2% 31.4% 31.2% 31.5%	0.60% 643.8 0.60% 643.8 0.60% 720.9 0.60% 720.9 0.60% 720.9 0.60% 752.0 0.60% 752.0 0.60% 752.0 0.60% 734.7 0.60% 667.1	617.8 631.8 694.2 694.2 694.2 724.2 724.2 739.2 722.2 655.6
Category	Weighted Average Option Fair Value					Weighted Average Share Price
B		722.6				740

(ii) Employee stock options – Cash settled

The cost of cash-settled transactions is measured initially at fair value at the grant date using a Binomial Option Pricing Model. This fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The liability is re-measured to fair value at each reporting date up to, and including the settlement date, with changes in fair value recognised in employee benefits expense.

Effect of cash settled share based payment transactions on the Balance Sheet

expense. Effect of cash settled share based payment transactions on the Balance Sheet
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Other non-current financial liabilities	277.3 78.2
Other current financial liabilities	303.0 76.6
Total carrying amount of liabilities	580.3 154.8

Corporate Overview Statutory Reports Financial Statements 421

Notes

Forming part of the Standalone Financial Statements

Effect of share based payment transactions on the Statement of Profit and Loss

Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Equity settled share based payments	149.2 205.6
Cash settled share basedpayments	688.4 176.1
Total expense on share basedpayments	837.6 381.7

43. Post-Employment Benefits

(i) Defined Contribution Plans:

The Company makes contributions towards provident and pension fund and superannuation fund to a defined contribution retirement benefit plan for qualifying employees. The superannuation fund is administered by the Life Insurance Corporation of India (LIC). Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.

(ii) Defined Benefit Plan:

• A) The Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC a funded defined benefit plan for qualifying employees. The scheme provides for payment as under:

• i) On normal retirement / early retirement / withdrawal / resignation:

As per the provisions of the Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

• ii) On death in service:

As per the provisions of the Payment of Gratuity Act, 1972 without any vesting period.

In addition to the above mentioned scheme, the Company also pays additional gratuity as ex-gratia and the said amount is provided as non-funded liability based on actuarial valuation.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31.03.2024. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect the following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements as at the Balance Sheet date.

==> picture [486 x 345] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Gratuity (Funded) Gratuity (Unfunded)
Particulars
No. As at 31.03.2024 As at 31.03.2023 As at 31.03.2024 As at 31.03.2023
Change in present value of obligation ('PVO') - defined
I)
benefit obligation:
PVO at the beginning of the year 2,526.7 2,522.3 1,635.0 1,595.5
Current service cost 245.0 233.8 136.2 129.4
Past service cost - - - -
Interest cost 187.4 179.0 121.2 113.2
Actuarial loss / (gain)
- Due to demographic assumption - - - -
- Due to finance assumption 99.7 (17.5) 71.2 5.5
- Due to experience adjustment 44.4 33.7 15.0 (48.0)
Benefits paid (261.3) (424.6) (103.9) (160.6)
- -
Transfer In / (Out) (85.0) (30.2)
PVO at the end of the year 2,756.9 2,526.7 1,844.5 1,635.0
II) Change in fair value of plan assets:
Fair value of plan assets at the beginning of the year 1,816.7 1,824.3 - -
Expected return on plan assets 1.6 5.8 - -
Interest Income 134.7 129.4 - -
Contributions by the employer 285.9 281.8 - -
- -
Benefits paid (261.3) (424.6)
Fair value of plan assets at the end of the year 1,977.6 1,816.7 - -
III) Reconciliation of PVO and fair value of plan assets:
PVO at the end of the year 2,756.9 2,526.7 1,844.5 1,635.0
Fair Value of plan assets at the end of the year 1,977.6 1,816.7 - -
Funded status (779.3) (710.0) (1,844.5) (1,635.0)
- - - -
Unrecognised actuarial loss/(gain)
Net liability recognised in the Balance Sheet (779.3) (710.0) (1,844.5) (1,635.0)
IV) Expense recognised in the Statement of Profit and Loss:
Current service cost 245.0 233.8 136.2 129.4
----- End of picture text -----

422 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

==> picture [486 x 337] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Gratuity (Funded) Gratuity (Unfunded)
Particulars
No. As at 31.03.2024 As at 31.03.2023 As at 31.03.2024 As at 31.03.2023
Past service cost - - - -
Interest cost 52.7 49.6 121.2 113.2
Total expense recognised in the Statement of Profit and 297.7 283.4 257.4 242.6
Loss
V) Other Comprehensive Income:
Actuarial loss / (gain)
- Due to demographic assumption - - - -
- Due to finance assumption 99.7 (17.5) 71.2 5.5
- Due to experience adjustment 44.4 33.7 15.0 (48.0)
- -
Return on plan assets excluding net interest (1.4) (5.8)
Total amount recognised in OCI 142.7 10.4 86.2 (42.5)
VI) Category of assets as at the end of the year:
Insurer managed Funds (100%)
(Fund is managed by LIC as per IRDA guidelines
category-wise composition of the plan assets is not 1,977.6 1,816.7 - -
available)
VII) Actual return on the plan assets: 136.3 135.2 - -
VIII) Assumptions used in accounting for the gratuity plan:
Rates stipulated in Indian Assured Lives Mortality 2012-14 from
Mortality (%) 01.04.2019 onwards
Discount rate (%) 7.2 7.4 7.2 7.4
9.0 for first three 9.0 for first three 9.0 for first three 9.0 for first three
Salary escalation rate (%) years and 6.0 years and 6.0 years and 6.0 years and 6.0
thereafter thereafter thereafter thereafter
Average Remaining Service (years) 11.3 11.4 11.3 11.4
Employee Attrition Rate (%)
up to 5 years 15 15 15 15
above 5 years 5 5 5 5
Estimate of amount of contribution in immediate
IX) next year 410.7 370.6 NA NA
----- End of picture text -----*

*₹ 2.0 million (31.03.2023 ₹ 1.9 million) capitalised as pre-operative expenses out of above amount.

X) Expected future benefit payments

X) Expected future benefit payments
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
1 year	704.1 638.8
2 to 5 years	1,591.8 1,454.5
6 to 10 years	1,873.6 1,635.9
More than 10years	5,463.0 5,221.8

The estimates of salary escalation considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions holding other assumptions constant would have affected the defined benefit obligation by the amounts shown below:

==> picture [486 x 68] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
31.03.2024 31.03.2023
Gratuity
Increase Decrease Increase Decrease
Discount Rate (1% movement) (350.8) 404.7 (318.0) 366.9
Future salary growth (1% movement) 402.1 (354.8) 365.3 (322.2)
Attrition rate (- / + 50% of attrition rates) (51.1) 59.0 (35.8) 39.0
----- End of picture text -----

Risk Exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are defined below:

Corporate Overview Statutory Reports Financial Statements 423

Notes

Forming part of the Standalone Financial Statements

Interest Rate risk The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability. Investment risk The probability or likelihood of occurrence of losses relative to the expected return on any particular investment. Salary risk The present value of the defined benefit plan liability is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

• B) The provident fund plan of the Company, except at one plant, is operated by “Lupin Limited Employees Provident Fund Trust” (“Trust”), a separate legal entity. Eligible employees receive benefits from the said Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plans equal to a specified percentage of the covered employee’s salary.

• The minimum interest rate payable by the Trust to the beneficiaries every year is being notified by the Government of India. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate. The Board of Trustees administer the contributions made by the Company to the schemes and also defines the investment strategy to act in the best interest of the plan participants.

• The Company has an obligation to service the shortfall on account of interest generated by the fund and on maturity of fund investments and hence the same has been classified as Defined Benefit Plan in accordance with Ind AS 19 “Employee Benefits”. As per the Guidance Note from the Actuarial Society of India, the Company has obtained the actuarial valuation of interest rate obligation in respect of Provident Fund as at 31.03.2024 and based on the same, there is no shortfall towards interest rate obligation. Based on the actuarial valuation obtained, the following is the details of fund and plan assets.

==> picture [486 x 424] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr.
Particulars As at 31.03.2024 As at 31.03.2023
No.
I) Change in present value of obligation ('PVO') - defined benefit obligation:
Liability at the beginning of the year 12,310.8 11,641.3
Interest cost 904.7 816.9
Current service cost 763.0 677.4
Employee's contribution 1,125.7 1,045.7
Liability Transferred in (342.1) (398.2)
Benefits paid (1,716.1) (1,595.5)
Actuarial loss/(gain)
-Due to financial assumptions 105.9 42.2
-Due to experience adjustment 33.2 81.0
Liability at the end of the year 13,185.1 12,310.8
II) Change in fair value of plan assets:
Fair value of plan assets at the beginning of the year 12,031.1 11,466.4
Investment income 881.6 803.2
Employer’s contributions 723.7 648.4
Employee’s contribution 1,125.7 1,045.5
Transfers in (369.8) (406.7)
Benefits paid (1,716.1) (1,595.4)
Return on plan assets, excluding amount recognised in net interest expense 232.9 69.7
Fair value of plan assets at the end of the year 12,909.1 12,031.1
III) Reconciliation of PVO and fair value of plan assets:
Present Value of defined benefit obligations 13,185.1 12,310.8
Fair Value of plan assets 12,909.1 12,031.1
Net Liability /(Asset) 276.0 279.7
IV) Expense recognised in the Statement of Profit and Loss:
Current service cost 763.0 677.4
Interest cost 904.7 816.9
Expected return on plan assets (881.6) (803.2)
(Income) / Expense recognised in the Statement of Profit and Loss 786.1 691.1
V) Other Comprehensive Income:
Actuarial loss / (gain)
- Due to finance assumption 105.9 42.2
- Due to experience adjustment 33.2 81.0
Return on plan assets excluding net interest (232.9) (69.7)
Total amount recognised in OCI (93.8) 53.5
----- End of picture text -----

424 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

==> picture [486 x 439] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr.
Particulars As at 31.03.2024 As at 31.03.2023
No.
VI) Major categories of Plan Assets (As per percentage of Total Plan Assets):
Government of India securities / State Government securities 56.4% 59.0%
High quality corporate bonds 0.7% 0.6%
Equity shares of listed companies 1.0% 1.3%
Debt Mutual Fund 38.0% 34.8%
Equity Mutual Fund 2.1% 2.5%
Special Deposit Scheme 1.6% 1.8%
Bank balance 0.2% 0.1%
Total 100% 100%
VII) Assumptions used in accounting for the provident fund plan:
Discount rate (%) 7.2 7.4
Average remaining tenure of investment portfolio (years) 7.6 7.7
Guaranteed rate of return (%) 8.3 8.2
Attrition rate - upto 5 years 15.0% 15.0%
above 5 years 5.0% 5.0%
44. Income Taxes
a) Tax expense/(benefit) recognised in statement of profit and loss:
(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Current Tax Expense for the year [including non-creditable foreign taxes of ₹ nil (31.03.2023 - ₹ 392.9 million)] 4,873.0 937.0
Tax expense of prior years (32.5) 21.9
Net Current Tax Expense 4,840.5 958.9
Deferred income tax liability/(asset), net
Origination and reversal of temporary differences (254.5) 60.4
Tax expense for the year 4,586.0 1,019.3
b) Tax expense/(benefit) recognised in other comprehensive income:
(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Items that will not be reclassified to profit or loss
Remeasurements of the defined benefit plans 47.2 7.5
Items that will be reclassified to profit or loss
The effective portion of gains and loss on hedging instruments in a cash flow hedge (11.7) 70.2
Total 35.5 77.7
----- End of picture text -----

c) Reconciliation of tax expense/(benefit) and the accounting profit multiplied by India’s domestic tax rate:

==> picture [486 x 153] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
Profit before tax 27,846.9 5,271.4
Tax using the Company’s domestic tax rate (31.03.2024: 34.94%, 31.03.2023: 34.94%) 9,730.9 1,842.0
Tax effect of:
Expenses not deductible for tax purposes 1,499.1 938.4
Impact of change in tax rates - -
Exemption of profit link incentives (6,486.2) (2,485.2)
MAT Credit not recognised 417.0 738.0
Effect of Non-Creditable foreign taxes - -
-
Impact of Transfer of Property, Plant and Equipment to Wholly owned subsidiary (411.2)
Other (131.1) (35.8)
Current and Deferred Tax expense (excluding prior year taxes) as per note 44(a) 4,618.5 997.4
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 425

Notes

Forming part of the Standalone Financial Statements

d) Movement in deferred tax balances:

==> picture [486 x 330] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
As at As at
Particulars 01.04.2023 Recognised in/under 31.03.2024 As at 31.03.2024
Retained
Profit or Deferred Deferred
Deferred Tax Assets/(Liabilities) Net balance Loss Earnings / OCI Net balance Tax Asset Tax Liability
Property, Plant and Equipment (3,717.8) (33.5) - (3,751.3) - (3,751.3)
Cash Flow Hedge Reserve 11.7 - (11.7) - - -
Impairment allowances for Trade Receivables/Bad debts 149.3 12.1 - 161.4 161.4 -
Mark to Market (Gain)/Loss (4.9) (13.9) - (18.8) - (18.8)
Deferred Income 200.5 18.3 - 218.8 218.8 -
Interest on tax refunds to be taxed in the year of 13.0 (46.8) - (33.8) - (33.8)
receipt - as per ICDS IV Para 8(2)
Provision for Employee Benefits 1,341.9 249.0 47.2 1,638.1 1,638.1 -
Others 156.1 69.3 - 225.5 225.5 -
Net Deferred Tax Assets / (Liabilities) (1,850.2) 254.5 35.5 (1,560.1) 2,243.8 (3,803.9)
(₹ in million)
As at As at
Particulars 01.04.2022 Recognised in/under 31.03.2023 As at 31.03.2023
Retained
Profit or Deferred Deferred
Deferred Tax Assets/(Liabilities) Net balance Loss Earnings / OCI Net balance Tax Asset Tax Liability
- -
Property, Plant and Equipment (3,464.2) (253.6) (3,717.8) (3,717.8)
Cash Flow Hedge Reserve (58.5) - 70.2 11.7 11.7 -
Impairment allowances for Trade Receivables/Bad debts 121.9 27.4 - 149.3 149.3 -
Mark to Market (Gain)/Loss (8.1) 3.2 - (4.9) - (4.9)
Deferred Income 111.2 89.3 - 200.5 200.5 -
Interest on tax refunds to be taxed in the year of receipt - as per ICDS IV Para 8(2) 11.9 1.1 - 13.0 13.0 -
Provision for Employee Benefits 1,286.8 47.6 7.5 1,341.9 1,341.9 -
Others 131.5 24.6 - 156.1 156.1 -
Net Deferred Tax Assets / (Liabilities) (1,867.5) (60.4) 77.7 (1,850.2) 1,872.5 (3,722.7)
----- End of picture text -----

Reflected in the balance sheet as follows:

Reflected in the balance sheet as follows:
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Deferred Tax Asset	2,243.8 1,872.5
Deferred Tax Liability	(3,803.9) (3,722.7)
Deferred Tax Asset/(Liabilities)(net)	(1,560.1) (1,850.2)

Deferred tax assets have not been recognized on capital losses of ₹ 691.2 million (previous year ₹ 1,087.3 million) and Minimum Alternative Tax (MAT) credit of ₹ 1,271.5 million (previous year ₹ 854.5 million) on conservative basis. The capital loss can be carried forward till 31.03.2031 and MAT credit can be carried forward from 31.03.2038 through 31.03.2039.

Management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

45. Research and Development

Details of Research and Development expenses incurred during the year and shown in the respective heads of account is given below:

Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Materials and stores and spares consumption	2,749.8 2,891.8
Power and fuel	292.5 351.3
Repairs and maintenance	493.7 542.9
Employee benefits expense	2,595.8 2,971.6
Analytical charges	1,842.3 1,920.3
Legal & Professional charges	2,337.1 1,596.3
Depreciation expense	642.5 842.0
Others	93.5 452.9
Total	11,047.2 11,569.1

426 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

46. Auditors’ Remuneration

46.Auditors’ Remuneration
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Payment to Auditors*:
a) As Auditors	25.5 20.5
b) for other services including certifications	6.5 9.1
c) Reimbursement of out-of-pocket expenses	3.8 2.1
Total	35.8 31.7

*Excluding GST

47. Impairment of Product Related Intangibles (IPs)

Following our annual impairment review, we have recognized impairment charges in the standalone profit and loss account in relation to intangibles assets both commercialised and under development as follows:

relation to intangibles assets both commercialised and under development as follows:
Impairment	₹ in million
Intangible assets commercialised	240.2
Intangible assets under development	1,253.7
Total	1,493.9

Intangible assets commercialised:

The impairment of intangibles relate to IPs acquired as part of the acquisition from Anglo French Drugs and Industries Limited (AFDIL), related to India market. The impairment was primarily carried out on account of (i) Certain Fixed Dose Combination (FDCs) ban by government and (ii) lower offtake of few brands in generics market, coupled with low margins.

Intangible assets under development:

During FY 2017-18, the Company had acquired from its subsidiary an IP to further develop and commercialise. During the current year, the Company after factoring the risk and reward associated with the IP, the various alternatives available in the market of the product has decided not to further pursue the development and accordingly recorded an impairment of ₹ 1,253.7 million.

The impairment has been determined by considering each individual intangible asset as a cash generating unit (CGU). Recoverable amount of CGUs for which impairment is done is ₹ 136.2 million. Recoverable amount (i.e. higher of value in use and fair value less cost to sell) of each individual CGU was compared to carrying value and impairment amount was arrived as follows:

• CGUs where carrying value was higher than recoverable amount were impaired and

• CGUs where recoverable amount was higher than carrying value were carried at carrying value

The fair value so used is categorized as a level 3 valuation in line with the fair value hierarchy per requirements of Ind AS 113 “Fair Value Measurement”.

The fair value has been determined with reference to the discounted cash flow technique.

The key assumptions used in the estimation of the recoverable amounts is as mentioned below. The value assigned to the key assumptions represents management’s assessment of the future trends in the industry and have been based on historical data from both external and internal sources.

==> picture [486 x 102] intentionally omitted <==

----- Start of picture text -----

Assumptions How determined
Projected cash flows Based on past experience and adjusted for the following:
- Current market dynamics
- Anticipated competition
Long term growth rate Long term growth rate has been determined with reference to market dynamics of each individual product
Post-tax risk adjusted Projected cash flows were discounted to present value at a discount rate that is commensurate with all risks
discounting rate of ownership and associated risks of realizing the projected residual profits. Each product category (Currently
Marketed Products and approved ANDAs, Filed ANDAs, and IP R&D) face different risks and accordingly different
discount rates were determined based on each product category’s risk profile. Discount rate was combination
of cost of debt and cost of equity. Cost of equity was estimated using capital asset pricing model.
----- End of picture text -----

The projected cashflows are discounted at post-tax rate ranging from 7.2% to 17.6%. The terminal growth rate is considered ranging from 5% to -5%.

The cash flow projections are based on five years specific estimates, five years estimates developed using internal forecasts and a terminal growth rate thereafter considering the life of intangibles being approx. ten years. The management has considered ten year growth rate since the same appropriately reflects the period over which the future benefits of the intangibles will accrue to the Company. Based on the assessment carried out as at March 31, 2024 and after considering performance for the full year ended March 31, 2024, adequate provision is made. Hence, no further provision is required to be made.

Corporate Overview Statutory Reports Financial Statements 427

Notes

Forming part of the Standalone Financial Statements

48. Business Combination and Assets Acquisition

a) Assets Acquisition:

On August 18, 2023, the Company acquired diabetes brands ONDERO® and ONDERO MET® from Boehringer Ingelheim International GmbH (Boehringer Ingelheim), including the trademark rights associated with these brands. The Company has been marketing ONDERO® and ONDERO MET® since 2015 in the Indian market as part of a co-marketing agreement with Boehringer Ingelheim India. The transaction is accounted as an asset acquisition with the total purchase price of ₹ 2,300.2 million (Euro 26.0 million). This acquisition has been classified under intangible assets.

On September 22, 2023, the Company acquired five legacy brands in strategic therapy areas - Gastroenterology, Urology and Antiinfectives from Menarini (A. Menarini India Private Limited and A. Menarini Asia-Pacific Holdings Pte. Ltd.), along with the associated trademark rights. The brands are Piclin (Picosulphate Sodium), Menoctyl (Otilonium Bromide), Sucramal O (Sucralfate + Oxetacaine), Pyridium (Phenazopyridine) and Distaclor (Cefaclor). The transaction is accounted as an asset acquisition with the total purchase price of ₹ 1,043.2 million. This acquisition has been classified under intangible assets.

b) Brand Acquisition - Anglo French Drugs and Industries Limited (AFDIL):

During the previous year, the Company had acquired market leading brands in nutraceuticals, CNS, skin and respiratory segments from Anglo French Drugs and Industries Limited and its Associates to strengthen the Company’s India Formulation business. The purchase price allocation carried out resulted in goodwill of ₹ 158.6 million. The following table summarizes the allocation of purchase price consideration, for the fair values of the assets acquired and liabilities assumed and the resultant goodwill.

==> picture [486 x 227] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 07.04.2022
Purchase Consideration paid (A) 3,250.0
Fair Value of Assets Acquired :
Non-Current
Other Intangible Assets :
Trademarks and Licenses 2,855.3
Knowhow 146.1
Current
Inventories 90.0
Total Assets [i] 3,091.4
-
Total Liabilities [ii]
Total Identifiable Net Assets [i-ii] (B) 3,091.4
Goodwill arising on acquisition (A-B) 158.6
Cash Outflows arising on acquisition
Purchase consideration paid/payable in cash 2,950.0
Contingent Consideration payable (subsequently paid) 50.0
Deferred consideration payable 250.0
Total 3,250.0
----- End of picture text -----*

• The amount of ₹ 250 million is payable in 3 equal instalments over the period of 3 year from the date of acquisition as per Escrow agreement along with interest thereon.

49. Business Restructuring

• a) The Board at its meeting held on September 11, 2023 considered and approved to transfer Active Pharmaceutical Ingredients manufacturing sites at Dabhasa and Visakhapatnam and select R&D operations to its wholly owned subsidiary Lupin Manufacturing Solutions Limited, as a going concern on slump sale basis for a consideration of ₹ 7,150.0 million and subject to working capital adjustments. Upon execution of the Business Transfer Agreement, the Business Undertaking was transferred on November 01, 2023.

Effect of disposal on the financial position

==> picture [486 x 113] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 01.11.2023
Non-Current
Property, Plant and Equipment 3,906.1
Capital work-in-progress 1,071.5
Other Intangible assets 3.7
Right-of-use Assets 3.6
Financial Assets
Non-current Investments 1.0
Other Non-current Assets 12.9
----- End of picture text -----

428 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

==> picture [486 x 295] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 01.11.2023
Current
Inventories 1,590.1
Financial Assets
(i) Trade receivables 498.6
(ii) Cash and cash equivalents 1.2
-
(iii) Short term loans and advances
(iv) Others Financial Assets 19.2
Other Current Assets 649.9
Total Assets [I] 7,757.8
Non-Current
Financial Liabilities
(i) Lease Liability 3.6
(ii) Other Financial Liabilities 7.5
Long term provision 88.9
Current
Financial Liabilities
(i) Trade payable 308.6
(ii) Other Financial Liabilities 48.1
Other Current Liabilities -
Short term provision 85.2
Total Liabilities [II] 541.9
Total Net Identified Assets [I - II] (A) 7,215.9
Consideration received in Cash (B) 7,222.3
Profit on disposal of Business Unit (Refer Note 29) 6.4
----- End of picture text -----

• b) The Board at its meeting held on March 22, 2024 considered and approved to transfer its Generic Business which includes transfer of all the tangible and intangible assets, contracts, permission, consents, rights, registrations, employees, other assets and liabilities to Lupin Life Science Limited (‘LLSL’) (formerly known as Lupin Atharv Ability Limited), wholly owned subsidiary of the Company, as a going concern on slump sale basis for a consideration of about ₹ 1,000.0 million to ₹ 1,200.0 million subject to working capital adjustments and other items in the intervening period upto completion and post-completion adjustments, if any. The Company expects to execute Business Transfer Agreement (BTA) by Q1 FY25.

Accordingly, as per Ind AS 105 “Non- Current Assets Held for Sale and Discontinued Operations” the disclosures have been made in these financial statements.

Assets and Liabilities of disposal group held for sale

==> picture [486 x 136] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024
Assets included in disposal group held for sale
Inventories 493.6
Trade receivables 983.3
Total Assets held for Sale 1,476.9
Liabilities included in disposal group held for sale
Trade payable 370.1
Trade Deposits received 84.0
Employee Benefits payable 20.6
Other Current Liabilities 0.5
Total Liabilities held for Sale 475.2
----- End of picture text -----

50. European Commission Fine

During the year ended 31.03.2019, the General Court of the European Union delivered its judgement concerning Lupin’s appeal against the European Commission’s (EC) 2014 decision in case of alleged breach of the EU Antitrust Rules in respect of IPs for product Perindopril. Accordingly, the Company based on best estimates of the management, is carrying a provision of ₹ 4,156.4 million (31.03.2023 ₹ 4,077.5 million) (including interest thereon) as under:

Corporate Overview Statutory Reports Financial Statements 429

Notes

Forming part of the Standalone Financial Statements

Notes Forming part of the Standalone Financial Statements Corporate Overview Statutory	ReportsFinancial Statements
Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Carrying amount at the beginning of the year	4,077.5 3,783.9
Add: Additional Provisions (interest) made during the year	58.5 56.1
Less: Amounts used / utilised during the year	- -
Add: Exchange Difference duringtheyear	20.4 237.5
Carrying amount at the end of theyear	4,156.4 4,077.5

The Company has filed appeal against this judgment in the Court of Justice of the European Union.

51. Corporate Social Responsibility (CSR)

The aggregate amount of expenditure incurred during the year by the Company on CSR is ₹ 252.6 million (31.03.2023 ₹ 290.3 million) and is shown separately under note 33 based on Guidance Note on Accounting for Expenditure on CSR Activities issued by the ICAI.

==> picture [486 x 176] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Year ended Year ended
Particulars
31.03.2024 31.03.2023
(a) amount required to be spent by the Company during the year 252.6 290.3
(b) amount of expenditure incurred on
- -
(i) Construction / acquisition of any asset
(ii) On purposes other than (i) above 252.6 290.3
- -
(c) Shortfall at the end of the year
- -
(d) Total of previous years shortfall
(e) Reason for shortfall N.A. N.A.
Rural support programmed, patient
awareness and other activities
(f) Nature of CSR activities mentioned in Schedule VII of the
Companies Act, 2013
(g) Details of related party transactions 228.0 268.0
(h) Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year shall be shown - -
----- End of picture text -----

The amount required to be spent by the company during the year is ₹ 252.6 million (31.03.2023 ₹ 290.3 million). Actual amount spent during the year is ₹ 256.0 million. Excess amount of ₹ 3.4 million is carried forward to next year and presented under prepaid expenses. No amount was spent during the year towards construction/acquisition of any asset relating to CSR expenditure and there are no outstanding amounts payables towards any other purposes.

Unspent amount as on 31.03.2024 has been deposited by the implementing agency for the ongoing projects with specified Bank Account within the timelines.

52. Micro, Small and Medium Enterprises (MSME)

The information regarding Micro, Small and Medium Enterprises (MSME) has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

==> picture [486 x 143] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
i. The principal amount and the interest due thereon remaining unpaid to any supplier at the 751.2 736.5
end of each accounting year (Micro Enterprises and Small Enterprises) (interest ₹ nil) (interest ₹ nil)
ii. The amount of interest paid by the buyer in terms of Section 16 of the Micro, Small and Medium
Enterprises Development Act, 2006 along with the amount of the payment made to the - -
supplier beyond the appointed day during each accounting year
iii. The amount of interest due and payable for the period of delay in making payment but
without adding the interest specified under the Micro, Small and Medium Enterprises - -
Development Act, 2006
iv. The amount of interest accrued and remaining unpaid at the end of each accounting year - -
v. The amount of further interest remaining due and payable even in the succeeding years,
until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under Section 23 of the Micro, Small and - -
Medium Enterprises Development Act, 2006
----- End of picture text -----

430 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

53. Financial Instruments

Financial instruments – Fair values and risk management:

A. Accounting classification and fair values:

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Fair value hierarchy

• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents estimate of fair value within that range.

==> picture [486 x 382] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Carrying amount Fair value
As at 31.03.2024 Amortised
FVTPL FVTOCI Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Non-Current Investments
- Others 382.7 - 1,581.6 1,964.3 - 351.9 30.8 382.7
Non-Current Loans
- Others - - 35.7 35.7 - - - -
Other Non-Current Financial
Assets
- Security Deposit - - 636.4 636.4 - - - -
- Others - - 399.4 399.4 - - - -
Current Investments 5,165.2 - 2,923.3 8,088.5 - 5,165.2 - 5,165.2
Trade Receivables - - 38,421.5 38,421.5 - - - -
Cash and Cash Equivalents - - 1,237.0 1,237.0 - - - -
Other Bank Balances including - - 149.4 149.4 - - - -
earmarked balances with banks
Current Loans
- Others - - 24.7 24.7 - - - -
Other Current Financial Assets
- Security Deposit - - 193.1 193.1 - - - -
- Others - - 5,609.5 5,609.5 - - - -
5,547.9 - 51,211.6 56,759.5 - 5,517.1 30.8 5,547.9
Financial liabilities
Non-Current Borrowings - - - - - - - -
Lease Liability (Non Current) - - 429.3 429.3 - - - -
Other Non-Current Financial
Liabilities
- Others - - 434.9 434.9 - - - -
Current Borrowings - - 181.3 181.3 - - - -
Lease Liability (Current) - - 438.7 438.7 - - - -
Trade Payables - - 20,362.7 20,362.7 - - - -
Other Current Financial Liabilities
- Others - - 3,278.1 3,278.1 - - - -
- - 25,125.0 25,125.0 - - - -
----- End of picture text -----*

• The above excludes the investments in subsidiaries amounting to ₹ 105,753.9 million (previous year ₹ 94,919.6 million)

** These are for operation purposes and the Company expects its refund on exit. The Company estimates that the fair value of these investments are not materially different as compared to its cost.

Corporate Overview Statutory Reports Financial Statements 431

Notes

Forming part of the Standalone Financial Statements

==> picture [486 x 428] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Carrying amount Fair value
As at 31.03.2023 Amortised
FVTPL FVTOCI Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Non-Current Investments
- Others 426.0 - - 426.0 - 406.3 19.7 426.0
Non-Current Loans
- Others - - 40.4 40.4 - - - -
Other Non-Current Financial
Assets
- Derivative instruments - - - - - - - -
- Security Deposit - - 723.8 723.8 - - - -
- Others - - 176.8 176.8 - - - -
Current Investments 4,397.7 - - 4,397.7 - 4,397.7 - 4,397.7
Trade Receivables - - 26,744.2 26,744.2 - - - -
Cash and Cash Equivalents - - 856.6 856.6 - - - -
Other Bank Balances including - - 153.1 153.1 - - - -
earmarked balances with banks
Current Loans
- Others - - 20.6 20.6 - - - -
Other Current Financial Assets
- Derivative instruments - - - - - - - -
- Security Deposit - - 41.1 41.1 - - - -
- Others - - 3,652.0 3,652.0 - - - -
4,823.7 - 32,408.6 37,232.3 - 4,804.0 19.7 4,823.7
Financial liabilities
Non-Current Borrowings - - - - - - - -
Lease Liability (Non Current) - - 651.0 651.0 - - - -
Other Non-Current Financial
Liabilities
- Derivative instruments - - - - - - - -
- Others - - 284.1 284.1 - - - -
Current Borrowings - - 6,134.6 6,134.6 - - - -
Lease Liability (Current) - - 699.5 699.5 - - - -
Trade Payables - - 15,662.9 15,662.9 - - - -
Other Current Financial Liabilities
- Derivative instruments - 52.7 - 52.7 - 52.7 - 52.7
- Others - - 2,523.2 2,523.2 - - - -
- 52.7 25,955.3 26,008.0 - 52.7 - 52.7
----- End of picture text -----*

• The above excludes the investments in subsidiaries amounting to ₹ 94,919.6 million (previous year ₹ 86,464.6 million)

** These are for operation purposes and the Company expects its refund on exit. The Company estimates that the fair value of these investments are not materially different as compared to its cost.

B. Measurement of fair values:

Valuation techniques and significant unobservable inputs:

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, for financial instruments measured at fair value in the statement of financial position, as well as the significant unobservable inputs used.

Type	Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement
Derivative instruments	Forward pricing: The fair value is determined using quoted forward exchange rates at the reporting date and present value calculations based on high credit quality yield curves in the respective currency.	Not applicable	Not applicable
Non-current financial assets and liabilities	Discounted cash flows: The valuation model considers the present value of expected receipt/payment discounted using appropriate discounting rates.	Not applicable	Not applicable

432 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

C. Financial risk management:

• The Company has exposure to the following risks arising from financial instruments: - Credit risk ;

• Liquidity risk; and

• Market risk

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports to the board of directors on its activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Company, through its training, standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

i. Credit risk:

• Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

Trade receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment.

As at 31.03.2024, the carrying amount of the Company’s largest customer (a wholly owned subsidiary in the USA) was ₹ 20,818.5 million (31.03.2023 ₹ 9,257.4 million).

Summary of the Company’s exposure to credit risk by age of the outstanding from various customers is as follows:

==> picture [486 x 148] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Not past due but impaired - -
Neither past due nor impaired 35,683.7 22,098.8
Past due not impaired
- 1-180 days 3,104.7 2,915.9
- 181- 365 days 528.6 1,134.6
- more than 365 days 367.8 749.4
Past due impaired
- 1-180 days - -
- 181- 365 days 8.1 -
- more than 365 days 97.0 94.1
Total 39,789.9 26,992.8
----- End of picture text -----

Expected Credit Loss ageing

Expected Credit Loss ageing
Ageing of ECL (in days)	(₹ in million) As at 31.03.2024 As at 31.03.2023
- 1-180 days	105.3 91.6
- 181- 365 days	56.4 62.9
- more than 365 days	118.3 -
Expected Credit Loss	280.0 154.5
Add: Past Due Impaired	105.1 94.1
Total Expected Credit Loss	385.1 248.6

Expected credit loss assessment

The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement. Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macroeconomic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

Corporate Overview Statutory Reports Financial Statements 433

Notes

Forming part of the Standalone Financial Statements

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

Particulars	(₹ in million) As at 31.03.2024 As at 31.03.2023
Balance as at the beginning of the year	248.6 199.2
Impairment loss recognised (net)	169.7 77.6
Amounts written off	(32.9) (31.7)
Exchange differences	(0.3) 3.5
Balance as at theyear end	385.1 248.6

Cash and cash equivalents

As at the year end, the Company held cash and cash equivalents of ₹ 1,237.0 million (31.03.2023 ₹ 856.6 million). The cash and cash equivalents are held with banks.

Other Bank Balances

Other bank balances are held with banks.

Derivatives

The derivatives are entered into with banks.

Investment in mutual funds, Non-Convertible debentures and Commercial papers

The Company limits its exposure to credit risk by generally investing in liquid securities, Non-Convertible debentures and Commercial papers only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counterparties.

Other financial assets

Other financial assets are neither past due nor impaired.

ii. Liquidity risk:

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

The Company has obtained fund and non-fund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposit and liquid and liquid plus schemes of mutual funds, non-convertible debentures, commercial papers which carry no/low mark to market risks. The Company monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

As at 31.03.2024 Carrying Amount	(₹ in million) Contractual Cash flows
	Total 0-12 months 1-2 years 2-5 years More than 5 years
Non-derivative financial liabilities:
Lease Liabilities - Non-Current 429.3	1,878.6 - 205.5 161.3 1,511.8
Other Non-Current Financial Liabilities 434.9	434.9 - 298.8 94.6 41.5
Current Borrowings 181.3	181.3 181.3 - - -
Lease Liabilities - Current 438.7	478.5 478.5 - - -
Trade Payables - Current 20,362.7	20,362.7 20,362.7 - - -
Other Current Financial Liabilities 3,278.1	3,278.1 3,278.1 - - -
Issued financial guarantee contracts on behalf of subsidiaries*
Total 25,125.0	26,614.1 24,300.6 504.3 255.9 1,553.3
As at 31.03.2023 Carrying Amount	(₹ in million) Contractual Cash flows
	Total 0-12 months 1-2 years 2-5 years More than 5 years
Non-derivative financial liabilities:
Lease Liabilities - Non-Current 651.0	2,115.8 - 401.9 194.0 1,520.0
Other Non-Current Financial Liabilities 284.1	284.1 - 129.2 154.9 -
Current Borrowings 6,134.6	6,134.6 6,134.6 - - -

434 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

(₹ in million)

	(₹ in million)
As at 31.03.2023 Carrying Amount	Contractual Cash flows
	Total 0-12 months 1-2 years 2-5 years More than 5 years
Lease Liabilities - Current 699.5	766.1 766.1 - - -
Trade Payables - Current 15,662.9	15,662.9 15,662.9 - - -
Other Current Financial Liabilities 2,523.2	2,523.2 2,523.2 - - -
Issued financial guarantee contracts on behalf of subsidiaries*
Derivative financial liabilities:
Forward Contracts 52.7	52.7 52.7 - - -
Total 26,008.0	27,539.4 25,139.5 531.1 348.9 1,520.0

• Guarantees issued by the Company on behalf of subsidiaries are with respect to borrowings raised by the respective subsidiary. These amounts will be payable on default by the concerned subsidiary. As of the reporting date none of the subsidiary have defaulted and hence the Company does not have any present obligation to third parties in relation to such guarantees (Refer note 56C).

iii. Market risk:

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk. Thus, the Company exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs. The Company uses derivatives to manage market risk. Generally, the Company seeks to apply hedge accounting to manage volatility in profit or loss.

Currency risk

The Company is exposed to currency risk on account of its operations in other countries. The functional currency of the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent periods and may continue to fluctuate in the future. Consequently, the Company uses both derivative instruments, i.e., foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognized assets and liabilities.

The Company enters into foreign currency forward contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables/ receivables.

The Company also enters into derivative contracts in order to hedge and manage its foreign currency exposures towards future export earnings. Such derivatives contracts are entered into by the Company for hedging purposes only and are accordingly classified as cash flow hedge.

Following is the derivative financial instruments to hedge the foreign exchange rate risk:

					(Amount in million)	(Amount in million)
Category	Instrument	Currency	Cross Currency	As at 31.03.2024	As at 31.03.2023	Buy/Sell
Hedges of highly probable forecasted transactions	Forward contract	USD	INR	USD 0.0	USD 72.0	Sell

The following table sets forth information relating to unhedged foreign currency exposure as at 31.03.2024

					(₹ in million)
Particulars	USD	EURO	GBP	JPY	Others
Financial Assets	29,741.5	933.9	956.2	178.2	1,521.6
Financial Liabilities	5,008.1	834.6	481.0	4.7	214.5
Net Asset/(Liability)	24,733.4	99.3	475.2	173.5	1,307.1

5% appreciation / depreciation of the respective functional currency of Lupin Limited with respect to various foreign currencies would result in increase / decrease in the Company’s profit before taxes by approximately ₹ 1,339.4 million for the year ended 31.03.2024.

The following table sets forth information relating to unhedged foreign currency exposure as at 31.03.2023

					(₹ in million)
Particulars	USD	EURO	GBP	JPY	Others
Financial Assets	18,602.0	923.9	619.8	305.0	1,363.7
Financial Liabilities	3,256.9	551.1	211.8	1.4	157.6
Net Asset/(Liability)	15,345.1	372.8	408.0	303.5	1,206.1

5% appreciation / depreciation of the respective functional currency of Lupin Limited with respect to various foreign currencies would result in increase / decrease in the Company’s profit before taxes by approximately ₹ 585.9 million for the year ended 31.03.2023. The Company has not entered into foreign currency forward contract for purposes other than hedging.

Corporate Overview Statutory Reports Financial Statements 435

Notes

Forming part of the Standalone Financial Statements

Exposure to Currency risk

Following is the currency risk exposure of non-derivative financial assets and financial liabilities:

Particulars	(₹ in million) As at 31.03.2024
	USD EURO GBP JPY Others
Financial assets
Cash and cash equivalents	76.0 - - - 5.4
Trade Receivables	29,665.5 933.9 952.6 170.6 1,516.2
Financial assets (current and non-current)	- - 3.6 7.6 -
	29,741.5 933.9 956.2 178.2 1,521.6
Financial liabilities
Trade Payables	4,945.0 801.7 481.0 4.7 210.5
Financial Liabilities (current and non-current)	63.1 32.9 - - 4.0
	5,008.1 834.6 481.0 4.7 214.5
Net statement of financialposition exposure	24,733.4 99.3 475.2 173.5 1,307.1

Particulars	(₹ in million) As at 31.03.2023
	USD EURO GBP JPY Others
Financial assets
Cash and cash equivalents	42.3 - 1.1 - 4.9
Trade Receivables	18,559.7 923.9 618.7 305.0 1,358.7
Financial assets (current and non-current)	- - - - 0.1
	18,602.0 923.9 619.8 305.0 1,363.7
Financial liabilities
Trade Payables	3,238.7 551.0 205.7 1.4 152.9
Financial Liabilities (current and non-current)	18.2 0.1 6.1 - 4.7
	3,256.9 551.1 211.8 1.4 157.6
Net statement of financialposition exposure	15,345.1 372.8 408.0 303.6 1,206.1

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against foreign currency at March 31 would have affected the measurement of financial instruments denominated in foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

sales and purchases.
				(₹ in million)
31.03.2024	Impact on Profit or (loss)		Equity, net of tax*
5% movement	Strengthening	Weakening	Strengthening	Weakening
USD	(1,236.7)	1,236.7	(804.5)	804.5
EURO GBP JPY Others	(5.0) (23.8) (8.7) (65.4)	5.0 23.8 8.7 65.4	(3.2) (15.5) (5.6) (42.5)	3.2 15.5 5.6 42.5
	(1,339.6)	1,339.6	(871.3)	871.3
				(₹ in million)
31.03.2023	Impact on Profit or (loss)		Equity, net of tax*
5% movement	Strengthening	Weakening	Strengthening	Weakening
USD	(471.4)	471.4	(691.6)	691.6
EURO GBP JPY Others	(18.6) (20.4) (15.2) (60.3)	18.6 20.4 15.2 60.3	(12.1) (13.3) (9.9) (39.2)	12.1 13.3 9.9 39.2
	(585.9)	585.9	(766.1)	766.1

• including other comprehensive income

436 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

The Company’s interest rate risk arises from borrowings. The interest rate profile of the Company’s interest-bearing borrowings is as follows:

==> picture [486 x 124] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Non-Current Borrowings
Fixed rate borrowings - -
Variable rate borrowings - -
- -
Current Borrowings
Fixed rate borrowings - 5,350.0
Variable rate borrowings 181.3 784.6
181.3 6,134.6
Total 181.3 6,134.6
----- End of picture text -----

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.

Particulars	(₹ in million) Profit or (loss)
	100 bp increase 100 bp decrease
Cash flow sensitivity (net)
31.03.2024
Fixed-rate borrowings	- -
Variable-rate borrowings	(1.8) 1.8
31.03.2023
Fixed-rate borrowings	(53.5) 53.5
Variable-rate borrowings	(7.8) 7.8

The risk estimates provided assume a change of 100 basis points interest rate for the interest rate benchmark as applicable to the borrowings summarised above. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

Commodity rate risk

The Company’s operating activities involve purchase and sale of Active Pharmaceutical Ingredients (API), whose prices are exposed to the risk of fluctuation over short periods of time. Commodity price risk exposure is evaluated and managed through procurement and other related operating policies. As of 31.03.2024 and 31.03.2023 the Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.

54. Capital Management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position.

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘total equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents, other bank balances and current investments.

Corporate Overview Statutory Reports Financial Statements 437

Notes

Forming part of the Standalone Financial Statements

The Company’s policy is to keep the ratio below 1.5. The Company’s adjusted net debt to total equity ratio was as follows:

==> picture [486 x 101] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Particulars As at 31.03.2024 As at 31.03.2023
Total borrowings 181.3 6,134.6
Less : Cash and cash equivalent 1,237.0 856.6
Less : Other Bank Balances 242.4 329.9
Less : Current Investments 8,088.5 4,397.7
Adjusted net debt (9,386.6) 550.4
Total equity 206,030.9 184,118.6
Adjusted net debt to total equity ratio (0.0) 0.0
----- End of picture text -----*

• includes earmarked bank deposits against guarantees & other commitments of ₹ 93.0 million (31.03.2023 ₹ 176.8 million) classified as Other Non-Current Financial Assets.

55. Hedge Accounting

The Company’s risk management policy is to hedge above 15% of its estimated net foreign currency exposure in respect of highly probable forecast sales over the following 12-24 months at any point in time. The Company uses forward exchange contracts to hedge its currency risk. Such contracts are generally designated as cash flow hedges.

The forward exchange forward contracts are denominated in the same currency as the highly probable forecast sales, therefore the hedge ratio is 1:1. These contracts have a maturity of 12-24 months from the reporting date. The Company’s policy is for the critical terms of the forward exchange contracts to align with the hedged item.

The Company determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency, amount and timing of their respective cash flows. The Company assesses whether the derivative designated in each hedging relationship is expected to be and has been effective in offsetting changes in the cash flows of the hedged item using the hypothetical derivative method.

In these hedge relationships, changes in timing of the hedged transactions is the main source of hedge ineffectiveness.

a. Disclosure of effects of hedge accounting on financial position

As at 31.03.2024 Type of hedge and risks Nominal Value (USD in million)	(₹ in million) Carrying amount of hedging instrument Line item in the statement of financial position where the hedging instrument is included Maturity date Hedge ratio Weighted Average strike price/ rate Changes in fair value of the hedging instrument Change in the value of hedged item used as the basis for recognizing hedge effectiveness Assets Liabilities
Cash flow hedge:
Forward exchange forward contracts -	- - Other Current Financial Liabilities NA - - - -

(₹ in million)

As at 31.03.2023

As at 31.03.2023	(₹ in million)
Type of hedge and risks Nominal Value (USD in million)	Carrying amount of hedging instrument Line item in the statement of financial position where the hedging instrument is included Maturity date Hedge ratio Weighted Average strike price/ rate Changes in fair value of the hedging instrument Change in the value of hedged item used as the basis for recognizing hedge effectiveness Assets Liabilities
Cash flow hedge:
Forward exchange forward contracts 72	- 52.72 Other Current Financial Liabilities April 2023 - March 2024 1:1 82.42 54.9 52.9

438 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

b. Disclosure of effects of hedge accounting on financial performance

					(₹ in million)
As at 31.03.2024	Change in the value of the hedging instrument recognised in OCI	Hedge ineffectiveness recognised in profit or (loss)	Line item in the statement of profit or loss that includes the hedge ineffectiveness	Amount reclassified from cash flow hedging reserve to profit or (loss)	Line item affected in statement of profit or loss because of the reclassification
Cash flow hedge	25.9	2.3	Net (gain) / loss on Foreign Currency	(26.8)	Revenue from operations - Sale of
			Transactions		goods
					(₹ in million)
As at 31.03.2023	Change in the value of the hedging instrument recognised in OCI	Hedge ineffectiveness recognised in profit or (loss)	Line item in the statement of profit or loss that includes the hedge ineffectiveness	Amount reclassified from cash flow hedging reserve to profit or (loss)	Line item affected in statement of profit or loss because of the reclassification
Cash flow hedge	(499.2)	(1.2)	Net (gain) / loss on Foreign Currency	(203.6)	Revenue from operations - Sale of
			Transactions		goods

• c. The following table provides a reconciliation by risk category of components of equity and analysis of OCI items, net of tax, resulting from cash flow hedge accounting:

==> picture [486 x 110] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Movements in cash flow hedging reserve
Balance as at 01.04.2022 185.4
Add: Changes in the fair value of effective portion of outstanding cash flow derivative (net off settlement) (499.2)
Less: Amounts re-classified to profit or loss 204.8
Less: Deferred tax 70.2
As at 31.03.2023 (38.8)
Less: Changes in the fair value of effective portion of outstanding cash flow derivative (net off settlement) 25.9
Add: Amounts re-classified to profit or loss 24.5
Add: Deferred tax (11.7)
As at 31.03.2024 -
----- End of picture text -----

56. Off-setting or Similar Agreements

The recognised financial instruments that are offset in balance sheet:

As at 31.03.2024	(₹ in million) Effects of offsetting on the balance sheet Amounts subject to master netting
	Gross Amounts Gross amounts set off in the balance sheet Net amounts presented in the balance sheet Related amounts not offset Net amount
Financial assets
Derivative instruments - Forward Contracts	- - - - -
Trade and other receivables	- - - - -
Financial liabilities
Derivative instruments - Forward Contracts	- - - - -
Trade and otherpayables	- - - - -

As at 31.03.2023	(₹ in million) Effects of offsetting on the balance sheet Amounts subject to master netting
	Gross Amounts Gross amounts set off in the balance sheet Net amounts presented in the balance sheet Related amounts not offset Net amount
Financial assets
Derivative instruments - Forward Contracts	- - - - -
Trade and other receivables	- - - - -
Financial liabilities
Derivative instruments - Forward Contracts	52.7 - 52.7 - 52.7
Trade and otherpayables	- - - - -

Corporate Overview Statutory Reports Financial Statements 439

Notes

Forming part of the Standalone Financial Statements

Offsetting arrangements

(i) Trade receivables and payables

The Company has certain customers which are also supplying materials. Under the terms of agreement there are no amounts payable by the Company that are required to be offset against receivables.

(ii) Derivatives

The Company enters into derivative contracts for hedging future sales. In general, under such agreements, the amounts owed by each counterparty on a single day in respect of all the transactions outstanding in the same currency are aggregated into a single net amount that is payable by one party to the other.

57. Related Party Disclosures, as required by Ind AS 24 are given below

A. Relationships - Category I: Entity having significant influence over the Company:

Lupin Investments Private Limited

Category II: Subsidiaries: Lupin Pharmaceuticals Inc., USA Lupin Australia Pty Limited, Australia Nanomi B.V., Netherlands Pharma Dynamics (Proprietary) Limited, South Africa Hormosan Pharma GmbH, Germany Multicare Pharmaceuticals Philippines Inc., Philippines Lupin Atlantis Holdings SA, Switzerland Medisol S.A.S., France (w.e.f. September 1, 2023) Lymed S.A.S., France (w.e.f. September 1, 2023) Lupin Healthcare (UK) Limited, UK Lupin Pharma Canada Limited, Canada Lupin Mexico S.A. de C.V., Mexico Generic Health Pty Limited, Australia Bellwether Pharma Pty Limited, Australia (up to June 11, 2023) Lupin Philippines Inc., Philippines Lupin Diagnostics Limited, India (formerly known as Lupin Healthcare Limited) Generic Health SDN. BHD., Malaysia Lupin Inc., USA Medquimica Industria Farmaceutica LTDA, Brazil Laboratorios Grin, S.A. de C.V., Mexico Novel Laboratories Inc., USA Lupin Research Inc., USA Avenue Coral Springs, LLC, USA Lupin Management Inc., USA Lupin Europe GmbH, Germany Southern Cross Pharma Pty Ltd., Australia Lupin Biologics Limited, India Lupin Oncology Inc., USA Lupin Digital Health Limited, India Lupin Life Sciences Limited, India (formerly known as Lupin Atharv Ability Limited) (w.e.f. July 17, 2023) Lupin Manufacturing Solutions Limited, India (w.e.f. July 24, 2023) Lupin Foundation, India

Category III: Jointly Controlled Entity:

YL Biologics Ltd., Japan

Category IV: Key Management Personnel (KMP):

Ms. Vinita Gupta Chief Executive Officer Mr. Nilesh D. Gupta Managing Director Mr. Ramesh Swaminathan Executive Director, Global CFO & CRO and Head - Corporate Affairs Mr. R.V. Satam Company Secretary

440 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

Non-Executive Directors

Mrs. Manju D. Gupta Chairman Dr. Kamal K. Sharma (upto 13.10.2022) Vice Chairman Mr. Jean-Luc Belingard Independent Director Ms. Christine Ann Mundkur (upto 31.12.2022) Independent Director Mr. K. B. S. Anand Independent Director Dr. Punita Kumar Sinha Independent Director Mr. Mark D. McDade Independent Director

Category V: Other related parties (Person / Entity with whom the Company had transactions during the year) : Ms. Kavita Gupta (Daughter of Chairman) Dr. Anuja Gupta (Daughter of Chairman) Dr. Richa Gupta (Daughter of Chairman) Ms. Shefali Nath Gupta (Wife of Managing Director) Miss Veda Nilesh Gupta (Daughter of Managing Director) Master Neel Deshbandhu Gupta (Son of Managing Director) D. B. Gupta (HUF) Gupta Family Trust Lupin Human Welfare and Research Foundation Mata Shree Gomati Devi Jan Seva Nidhi Polynova Industries Limited Zyma Properties Pvt. Limited Shuban Prints S.N. Pharma Team Lease Services Limited

B. Transactions with the related parties:

==> picture [486 x 323] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Year ended Year ended
Transactions
No. 31.03.2024 31.03.2023
1 Sale of Goods
Lupin Pharmaceuticals Inc. USA 26,590.1 17,602.7
Lupin Inc., USA 14,326.8 4,774.8
Lupin Atlantis Holdings SA, Switzerland 2,085.2 1,237.8
Lupin Healthcare (UK) Limited, UK 1,772.7 958.9
Other Subsidiaries 4,907.4 3,579.8
2 Sale - Research Services - Others
Subsidiaries 1,132.9 1,510.3
3 Sale/Transfer of Assets
Subsidiaries 8.2 93.0
Others - 3.4
4 Sale of Business Undertaking
Lupin Manufacturing Solutions Limited 7,222.3 -
5 Sale/Transfer of IP
Subsidiaries 0.2 827.1
6 Royalty Income
Subsidiaries 5.7 5.2
7 Fees Received against guarantees provided on their behalf
Subsidiaries 144.2 152.6
8 Services Rendered (Income)
Subsidiaries 131.4 125.1
9 Rent Received
Subsidiaries 12.4 1.5
Others 1.6 1.6
10 Purchase of Assets
Subsidiaries 64.9 98.3
----- End of picture text -----

Corporate Overview Statutory Reports Financial Statements 441

Notes

Forming part of the Standalone Financial Statements

==> picture [486 x 584] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. Year ended Year ended
Transactions
No. 31.03.2024 31.03.2023
11 Rent Paid
Others 11.2 20.1
12 Research and Development Expenses
Other Subsidiaries 476.8 834.3
13 Expenses incurred on their behalf Recovered/Rent Received
Subsidiaries 730.2 481.1
Others 0.1 1.8
14 Remuneration Paid
Key Management Personnel 189.1 136.7
15 Purchases of Goods/Materials
Subsidiaries 1,244.0 347.1
Others 136.2 154.2
16 Commission, Advisory Fees & Sitting Fees to Non-Executive Directors
Key Management Personnel 71.1 22.9
17 Donations Paid / Corporate Social Responsibility (CSR) Expenses
Others 253.8 284.1
18 Dividend Paid
Entity having significant influence over the Company 828.8 828.8
Key Management Personnel 4.9 4.9
Others 23.1 23.7
19 Services Received (Expense)
Lupin Pharmaceuticals Inc. USA - 74.6
Other Subsidiaries 1,099.5 902.3
Others 88.4 74.9
20 Expenses incurred on our behalf & Other Reimbursements
Subsidiaries 1,400.3 1,153.0
Others 3.3 4.6
21 Deposit Received for office premises
Subsidiaries 3.0 -
22 Refund of Deposit
Others - 21.6
23 Interest Income
Subsidiaries 100.1 -
24 Investment in Subsidiary
Subsidiaries 11,296.1 8,609.3
25 Short Term Loans Given
Subsidiaries 135.0 -
26 Short Term Loans Given Received Back
Subsidiaries 135.0 -
27 Advance against supplies paid
Others - 40.0
28 Corporate guarantees issued by the Company to the bankers of subsidiary companies
Lupin Pharmaceuticals Inc. USA - 2,157.0
Medquimica Industria Farmaceutica LTDA, Brazil 5,032.9 -
Others - 329.8
29 Withdrawal of corporate guarantees given by the Company to the bankers of subsidiary companies
Lupin Pharmaceuticals Inc. USA 3,328.4 -
Medquimica Industria Farmaceutica LTDA, Brazil 2,912.4 1,646.1
Lupin Healthcare (UK) Limited, UK - 64.6
----- End of picture text -----

*Related party transactions above 1% of revenue from operations are disclosed separately

442 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

Compensation paid to Key Management Personnel*	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Short-term employee benefits	159.1 113.4
Post-employment benefits	20.1 12.1
Share basedpayments	9.9 11.2
Total	189.1 136.7

• Expenses towards gratuity and leave encashment provisions are determined actuarially on an overall Company basis and accordingly have not been considered in the above information.

Terms and conditions of transactions with related parties:

All related party transactions entered during the year were in ordinary course of business, on arm’s length basis. Outstanding balances at the year-end are unsecured, interest free and settlement occurs in cash.

C. Balances due from/to the related parties:

==> picture [486 x 287] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Sr. As at As at
Transactions
No. 31.03.2024 31.03.2023
1 Investments
Subsidiaries 105,753.9 94,457.8
2 Deposits paid under Leave and License arrangement for premises
Others 7.4 7.4
3 Trade Receivables
Subsidiaries 28,836.5 16,040.1
4 Trade Payables
Subsidiaries 3,582.4 1,607.2
Others 8.5 12.7
5 Expenses Payable
Subsidiaries 5.0 227.6
6 Expenses Receivable
Subsidiaries 129.8 205.6
Others - -
7 Income / Interest Receivable
Subsidiaries 614.0 95.0
8 Advance against supplies paid
Others 30.5 35.0
9 Deposits received under Leave and License arrangement for premises
Subsidiaries 3.0 -
Others 0.1 0.1
10 Corporate guarantees issued by the Company to the bankers of subsidiary companies (Refer Note 66) 34,536.2 35,295.3
11 Guarantees issued by the Company on behalf of subsidiary companies for contractual obligations (Refer Note 66) 5,584.7 5,502.1
----- End of picture text -----

Transactions and balances with Jointly Controlled Entity have been reported at full value.

58. Non-Cash Changes in Cash Flows from Financial Activities

Particulars	01.04.2023 Cash flows	(₹ in million) Non-Cash Changes 31.03.2024 Interest Expense Foreign Exchange Movement Fair Value Changes
Current Borrowings
Secured
Loans from banks	- -	- - - -
Unsecured
Loans from banks	6,134.7 (5,953.4)	- - - 181.3
Interest accrued but not due on Borrowings	- -	- - - -
Current maturities of Non-Current Borrowings	- -	- - - -
Lease liabilities (Refer Note 41)	1,350.6 (566.5)	84.2 - - 868.3
Total Liabilities from financing activities	7,485.3 (6,519.9)	84.2 - - 1,049.6

Corporate Overview Statutory Reports Financial Statements 443

Notes

Forming part of the Standalone Financial Statements

Particulars	01.04.2022 Cash flows	(₹ in million) Non-Cash Changes 31.03.2023 Interest Expense Foreign Exchange Movement Fair Value Changes
Current Borrowings
Secured
Loans from banks	- -	- - - -
Unsecured
Loans from banks	7,904.7 (1,770.0)	- - - 6,134.7
Interest accrued but not due on Borrowings	- -	- - - -
Current maturities of Non-Current Borrowings	- -	- - - -
Lease liabilities (Refer Note 41)	1,603.8 (373.9)	120.6 - - 1,350.6
Total Liabilities from financing activities	9,508.5 (2,143.9)	120.6 - - 7,485.3

59. The Company evaluates events or transactions that occur after the standalone balance sheet date but prior to the issuance of standalone financial statements and concluded that no material subsequent events have occurred through 06.05.2024 that require adjustment to or disclosure in the standalone financial statements.

60. Trade Receivable Ageing

==> picture [486 x 200] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
Outstanding for following periods from due date of payment As at
Particulars Not due 6Less than months 6 months - 1 year 1 - 2 years 2 - 3 years More than 3 years 31.03.2024
(i) Undisputed Trade Receivables – 35,683.6 3,104.7 528.6 106.9 171.6 89.3 39,684.7
considered good
(ii) Undisputed Trade Receivables –
which have significant increase in - - - - - - -
credit risk
(iii) Undisputed Trade Receivables – - - 8.1 43.7 8.4 45.0 105.2
credit impaired
(iv) Disputed Trade Receivables – considered good - - - - - - -
(v) Disputed Trade Receivables –
which have significant increase in - - - - - - -
credit risk
(vi) Disputed Trade Receivables – - - - - - - -
credit impaired
35,683.6 3,104.7 536.7 150.6 180.0 134.3 39,789.9
Less: Allowance for credit loss 385.1
Less: Related to discontinuing/restructuring operations (refer note 49) 983.3
Total 38,421.5
----- End of picture text -----

Particulars	(₹ in million) Outstanding for following periods from due date ofpayment As at 31.03.2023 Not due Less than 6 months 6 months - 1year 1 - 2 years 2 - 3 years More than 3 years
(i) Undisputed Trade Receivables – considered good	22,098.8 2,915.9 1,134.6 655.7 87.7 5.9 26,898.6
(ii) Undisputed Trade Receivables – which have significant increase in credit risk	- - - - - - -
(iii) Undisputed Trade Receivables – credit impaired	- - - 17.7 36.6 39.9 94.1
(iv) Disputed Trade Receivables– considered good	- - - - - - -
(v) Disputed Trade Receivables – which have significant increase in credit risk	- - - - - - -
(vi) Disputed Trade Receivables – credit impaired	- - - - - - -
	22,098.8 2,915.9 1,134.6 673.4 124.2 45.8 26,992.7
Less: Allowance for credit loss	248.6
Total	26,744.1

444 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

61. Trade Payable Ageing

61.Trade Payable Ageing
Particulars	(₹ in million) Outstanding for following periods from due date ofpayment As at 31.03.2024 Not due Less than 1year 1-2 years 2-3 years More than 3 years
		As at 31.03.2024
	Not due Less than 1year 1-2 years 2-3 years More than 3 years
Outstanding dues of Micro and Small Enterprises	751.2 - - - -	751.2
Outstanding dues of other than Micro and Small Enterprises	11,946.5 3,077.0 371.1 189.9 76.8	15,661.3
Disputed - Outstanding dues of Micro and Small Enterprises	- - - - -	-
Disputed - Outstanding dues of other than Micro and Small Enterprises	- - - - 2.3	2.3
	12,697.7 3,077.0 371.1 189.9 79.1	16,414.8
Add: Accrued Expenses		4,318.0
Less: Related to discontinuing/restructuringoperations (refer note 49)		370.1
Total		20,362.7

Total	20,362.7
Particulars	(₹ in million) Outstanding for following periods from due date ofpayment As at 31.03.2023 Not due Less than 1year 1-2 years 2-3 years More than 3 years
Outstanding dues of Micro and Small Enterprises	736.5 - - - - 736.5
Outstanding dues of other than Micro and Small Enterprises	5,182.3 4,317.7 1,121.0 212.8 107.3 10,941.1
Disputed - Outstanding dues of Micro and Small Enterprises	- - - - - -
Disputed - Outstanding dues of other than Micro and Small Enterprises	- - - - 2.3 2.3
	5,918.7 4,317.7 1,121.0 212.8 109.7 11,679.9
Add: Accrued Expenses	3,983.0
Total	15,662.9

62. Capital Work-In-Progress (CWIP)

(a) Capital Work-In-Progress (CWIP) ageing

Total 62.Capital Work-In-Progress (CWIP) (a) Capital Work-In-Progress (CWIP) ageing	15,662.9	15,662.9
Particulars	(₹ in million) Amount in CWIP for aperiod of As at 31.03.2024 Less than 1year 1-2 years 2-3 years More than 3 years
		As at 31.03.2024
	Less than 1year 1-2 years 2-3 years More than 3 years
Projects in progress	1,314.4 453.2 927.2 1,416.4	4,111.2
Projects temporarilysuspended	- - - -	-
Total	1,314.4 453.2 927.2 1,416.4	4,111.2
Particulars	(₹ in million) Amount in CWIP for aperiod of As at 31.03.2023 Less than 1year 1-2 years 2-3 years More than 3 years
Projects in progress	1,387.4 2,374.6 506.5 3,111.4 7,379.9
Projects temporarilysuspended	- - - - -
Total	1,387.4 2,374.6 506.5 3,111.4 7,379.9

(b) Capital work-in-progress, where completion is overdue or cost has exceeded as compared to its original plans: There are no CWIP where completion is overdue or cost has exceeded as compared to its original plans as on 31.03.2024 and 31.03.2023, excluding amount of ₹ 1,139.7 million related to one project which was likely to be commissioned in FY 2023-24 but has been delayed due to covid pandemic and the project is expected to be capitalised in FY 2024-25.

Corporate Overview Statutory Reports Financial Statements 445

Notes

Forming part of the Standalone Financial Statements

63. Intangible Assets Under Development (IAUD)

(a) Intangible assets under development (IAUD) ageing

63.Intangible Assets Under Development (IAUD) (a) Intangible assets under development (IAUD) ageing
Particulars	(₹ in million) Amount in IAUD for aperiod of As at 31.03.2024 Less than 1year 1-2 years 2-3 years More than 3 years
		As at 31.03.2024
	Less than 1year 1-2 years 2-3 years More than 3 years
Projects in progress	12.8 76.1 29.6 208.6	327.1
Projects temporarilysuspended	- - - 20.0*	20.0
Total	12.8 76.1 29.6 228.6	347.1
* Refer Note 47 Particulars	(₹ in million) Amount in IAUD for aperiod of As at 31.03.2023 Less than 1year 1-2 years 2-3 years More than 3 years
Projects in progress	207.6 113.3 111.3 1,453.9 1,886.0
Projects temporarilysuspended	- - - - -
Total	207.6 113.3 111.3 1,453.9 1,886.0

(b) Intangible assets under development (IAUD), where completion is overdue or cost has exceeded as compared to its original plans:

There are no IAUD where completion is overdue or cost has exceeded as compared to its original plans as on 31.03.2024 and 31.03.2023.

64. Financial Ratios

==> picture [486 x 326] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
% of Reason for
Ratios Numerator Denominator 31.03.2024 31.03.2023
variances Variances
Current ratio Total Current Asset Total Current Liabilities 2.51 2.09 20.10
Debt-Equity ratio Total Debt= Non Current Borrowings+Current Borrowings Total Equity Attributable to owners 0 0.03 (100.00) Reduction in borrowings
Earnings available for Debt
Service = Net Profit after
taxes before OCI + Non- Debt service (Debt Increase in profit
Debt service cash operating expenses service =Interest & Lease 40.21 8.91 351.29 due to higher sales
coverage ratio like depreciation and other Payments + Principal and reduction in
amortizations - Unrealised gain Repayments) borrowings
+ Interest + loss on sale of Fixed
assets
Average Shareholder’s
Equity = (Opening Increase in profit
Return on Equity ratio (ROE) Net profits after taxes Shareholder’s Equity + 0.12 0.02 500.00 due to higher sales and improved
Closing Shareholder’s
Equity)/2 margins
Cost of Goods Sold = Cost
of Materials Consumed +
Inventory turnover ratio Purchases of Stock-in-Trade + Changes in inventories Average Inventory = (Opening inventory + Closing inventory)/2 1.68 1.55 8.39
of Finished Goods / Work in
Progress / Stock-in-Trade
Trade receivables
turnover ratio Total sales Closing Trade receivable 3.73 4.13 (9.69)
Trade payables turnover ratio Total Purchases Closing Trade Payables 2.67 3.22 (17.08) Improved Credit terms with vendor
Net capital turnover ratio Net sales Working Capital = current assets - current liabilities 2.56 2.80 (8.57)
Increase in profit
Net Profit ratio Net Profit after Tax Revenue from Operations 16.00% 4.00% 300.00 due to higher sale
s and improved
margins
----- End of picture text -----

446 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

==> picture [486 x 296] intentionally omitted <==

----- Start of picture text -----

(₹ in million)
% of Reason for
Ratios Numerator Denominator 31.03.2024 31.03.2023
variances Variances
Capital Employed= Increase in profit
Return on Capital Earnings before interest and Tangible Net Worth + Total 0.14 0.03 100.00 due to higher sales
Employed (ROCE) taxes Debt + Deferred Tax Liability and improved
(net) margins
Gross Profit = Net sales - Cost of
Gross Profit ratio Net sales 64.90% 56.55% 14.75
Materials
EBITDA (Earnings Before Increase in profit
EBITDA ratio Interest, Taxes, Depreciation, Net sales 24.91% 10.63% 134.30 due to higher sales
and Amortization) and improved
margins
Return on
Investment (ROI)
Increase due to
Improved return on
1) Mutual Fund Income generated from Average Investment (B) 0.05 0.02 150.00 Investment where
investment (A)
surplus funds have
been invested
2) Financial Institution (CD) Income generated from investment (A) Weighted Average Investment (B) - 0.05 (100.00) Reduction in Investments
Increase due to
3) Commercial Paper Income generated from investment (A) Weighted Average Investment (B) 0.07 0.04 75.00 Improved return on Investment where
surplus funds have
been invested
Increase due to
4) Non Improved return on
Convertible Debentures Income generated from investment (A) Weighted Average Investment (B) 0.09 0.05 80.00 Investment where surplus funds have
been invested
----- End of picture text -----

65. Title deeds of all immovable properties are held in the name of the Company, except as follows

(₹ in million)

follows								(₹ in million)
						Whether in
Particulars of the land and building	Gross Block (as at 31.03.2024)	Net Block (as at 31.03.2024)	Gross Block (as at 31.03.2023)	Net Block (as at 31.03.2023)	Title deeds held in the name of	the name of promoter, director or their relative	Period held (Date of Amalgamation)	Reason for not being held in the name of the Company
						or employee
Freehold land located in Maharashtra admeasuring 7 Hectare and 70.91 Acre	29.6	29.6	29.6	29.6	Lupin Laboratories Limited	No	From 2001	The file is pending with local authorities for final approval for affecting in the name of Lupin Limited
Freehold building located in Maharashtra admeasuring 8038 sq. ft.	133.9	80.2	133.9	82.4	Lupin Laboratories Limited	No	From 2001	Refer Note Below

Note: The title deeds are in the name of erstwhile Company that was amalgamated with the Company pursuant to the Scheme of amalgamation sanctioned by the Hon’ble Bombay High Court. Further, since the society is yet to be formed, the transfer of title in the name of the Company is pending.

In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset in Note No. 5 to the standalone financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement, except the following:

Corporate Overview Statutory Reports Financial Statements 447

Notes

Forming part of the Standalone Financial Statements

										(₹ in million)
							Whether in
Particulars of the land and building	Gross Block (as at 31.03.2024)		Net Block (as at 31.03.2024)	Gross Block (as at 31.03.2023)	Net Block (as at 31.03.2023)	Title deeds held in the name of	the name of promoter, director or their relative	Period held (Date of Amalgamation)	Reason for held in the Company	not being name of the
							or employee
Leasehold
building						Lupin
located in Delhi		2.8	2.2	2.8	2.2	Laboratories	No	From 2001	Refer Note Below
admeasuring						Limited
1628 sq.ft

Note - The title deeds are in the name of the erstwhile Company that was amalgamated with the Company pursuant to the Scheme of amalgamation sanctioned by the Hon’ble Bombay High Court. Further, this being a lease agreement, the lessor has already changed the name of the company in all it’s routine invoices.

In respect of immovable properties of land and buildings which are disclosed as fixed asset in the financial statements, the original documents are not available for verification, details of which are as given below:

				(₹ in million)
Particulars of the land and building	Gross Block (as at 31.03.2024)	Net Block (as at 31.03.2024)	Gross Block (as at 31.03.2023)	Net Block (as at 31.03.2023)
Building located in Maharashtra	7.5	4.5	7.5	4.6
Land located in Uttarakhand	0.3	0.3	0.3	0.3

66. Details of Loans Given, Investments made and Guarantee Given covered under section 186(4) of the Companies Act, 2013

• A Details of loans given and investment made in the subsidiaries are as disclosed under respective heads and are meant for the purpose of business expansion.

B Corporate guarantees given by the Company

B Corporate guarantees given by the Company
Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Subsidiary Companies:
a. Medquimica Industria Farmaceutica LTDA, Brazil	3,885.3 1,811.1
b. Lupin Pharmaceutical Inc, USA	30,650.9 33,484.2
Total	34,536.2 35,295.3

C Financial guarantees given by the Company

Particulars	(₹ in million) Year ended 31.03.2024 Year ended 31.03.2023
Subsidiary Companies:
a. Nanomi B.V., Netherlands	5,584.7 5,520.1
Total	5,584.7 5,520.1

The Company has issued guarantees for its subsidiaries in respect of loan taken by them to meet their working capital requirement.

67. Donations under Note 34 includes donations for political purposes

Pursuant to the Resolution passed at a meeting of the Board of Directors, donation includes amount of ₹ 250 million to Prudent Electoral Trust, which is within the limits specified by Section 182(1) of the Companies Act, 2013. The said amount is required to be distributed directly/indirectly by the Trust, to various eligible political parties (registered under Section 29A of the Representation of the People Act, 1951), as per the provisions of the Income Tax Act, 1961.

During the previous year, donations for political purpose amounting to ₹ 180 million were made through Electoral Bonds.

448 LUPIN LIMITED | Integrated Report 2023-2024

Notes

Forming part of the Standalone Financial Statements

68. Other Statutory Information

• a) The Company has not entered into any transactions with Struck off Companies under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 for the year ended 31 March 2024 and 31 March 2023.

• b) The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either severally or jointly with any other person. No trade or other receivable are due from directors of the company either severally or jointly with any other person.

• c) The Company has not traded or invested in Crypto Currency or Virtual Currency.

• d) The Company does not have any transaction not recorded in the books of account that has been surrendered or not disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 for the year ended 31 March 2024 and 31 March 2023.

• e) The Company has complied with number of layers prescribed under clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

• f) There is no charge or satisfaction of charge which is yet to be registered with ROC beyond the statutory period.

• g) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

• h) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

• i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. However , the Company, as a part of its treasury operations, invests/advances loans to fund the operations of its subsidiaries which have further utilised these funds for their general corporate purposes/ working capital, etc. within the consolidated group of the Company and in the ordinary course of business. These transactions are done on an arms length basis following a due approval process.

In terms of our report attached For B S R & Co. LLP Chartered Accountants Firm Registration No. 101248W/W-100022

Sudhir Soni Partner Membership No.: 041870

For and on behalf of Board of Directors of Lupin Limited

Manju D. Gupta

Vinita Gupta

Vinita Gupta Nilesh D. Gupta Chief Executive Officer Managing Director DIN: 00058631 DIN: 01734642

Chairman DIN: 00209461

Ramesh Swaminathan Executive Director, Global CFO & CRO and Head - Corporate Affairs DIN: 01833346

R. V. Satam

Company Secretary ACS - 11973

Place: Mumbai Dated: May 06, 2024

449

GRI Content Index

GRI Standard Number	Disclosure Number Description Section/Subsection Title Page No./ Explanation
GRI 2 - General Disclosures	2-1 Organizational details About Lupin 7
	2-2 Entities included in the organization’s sustainability reporting About the Report: Reporting Boundary and Scope i
	2-3 Reporting period, frequency and contact point About the Report: Reporting Boundary and Scope & Feedback i
	2-4 Restatements of information About the Report i
	2-5 External assurance About the Report i
	2-6 Activities, value chain and other business relationships About Lupin, Our Value Creation Model 7, 26-27
	2-7 Employees Lupin Databook 158-169
	2-8 Workers who are not employees Lupin Databook 158-166
	2-9 Governance structure and composition Governance, Ethics, and Compliance & Corporate governance report 54-57
	2-10 Nomination and selection of the highest governance body Governance, Ethics, and Compliance & Corporate Governance Report 54-57
	2-11 Chair of the highest governance body Governance, Ethics, and Compliance: Board Committees 55, 57
	2-12 Role of the highest governance body in overseeing the management of impacts Governance, Ethics, and Compliance 54-57
	2-13 Delegation of responsibility for managing impacts Governance, Ethics, and Compliance 54-57
	2-14 Role of the highest governance body in sustainability reporting Governance, Ethics, and Compliance: ESG Governance 56
	2-15 Conficts of interest Governance, Ethics, and Compliance & Lupin Databook 54-57 & 151
	2-16 Communication of critical concerns Governance, Ethics, and Compliance 54-57
	2-17 Collective knowledge of the highest governance body Corporate governance report 224
	2-18 Evaluation of the performance of the highest governance body Corporate governance report 202-203
	2-19 Remuneration policies Corporate governance report 203
	2-20 Process to determine remuneration Corporate governance report 203
	2-21 Annual total compensation ratio Lupin Databook 160
	2-22 Statement on sustainable development strategy Chairman’s Letter, CEO & MD’s Letter, CFO’s Letter 13-21
	2-23 Policy commitments Governance. Ethics and Compliance, ESG Goals and Progress, & BRSR (Section B) 56
	2-24 Embedding policy commitments ESG Goals and Progress & BRSR (Section B) 68-71
	2-25 Processes to remediate negative impacts Risk Management 136
	2-26 Mechanisms for seeking advice and raising concerns Governance, Ethics, and Compliance 56
	2-27 Compliance with laws and regulations Lupin Databook 151
	2-28 Membership associations BRSR Principle 7 268-269
	2-29 Approach to stakeholder engagement BRSR Principle 4 259-260
	2-30 Collective bargaining agreements BRSR Principle 3 257
GRI 3 - Material Topics	3-1 Process to determine material topics Our Approach to Materiality 63-64
	3-2 List of material topics Our Approach to Materiality 65
	3-3 Management of material topics Our Approach to Materiality 66-67
GRI 201 - Economic Performance	201-2 Financial implications and other risks and opportunities due to climate change Natural Capital - Climate Risk Assessment, TCFD report 116-118
	201-3 Defned beneft plan obligations and other retirement plans BRSR Principle 3 256

450

GRI Standard Number	Disclosure Number Description Section/Subsection Title Page No./ Explanation
GRI 203 - Indirect Economic Impacts	203-1 Infrastructure investments and services supported Social and Relationship Capital 122-123
	203-2 Signifcant indirect economic impacts Social and Relationship Capital 125-128
GRI 204 - Procurement Practices	204-1 Proportion of spending on local suppliers BRSR Principle 8 270
GRI 205 - Anti-corruption	205-1 Operations assessed for risks related to corruption RIsk Management: Risk Register 138
	205-2 Communication and training about anti- corruption policies and procedures Governance, Ethics, and Compliance 56
	205-3 Confrmed incidents of corruption and actions taken Lupin Databook 151
GRI 206 - Anticompetitive Behavior	206-1 Legal actions for anticompetitive behavior, antitrust, and monopoly practices Lupin Databook 151
GRI 302 - Energy	302-1 Energy consumption within the organization Lupin Databook 153
	302-3 Energy intensity BRSR Principle 6 263
	302-4 Reduction of energy consumption Natural Capital - Energy Management Strategy 114-115
GRI 303 - Water and Effuents	303-1 Interactions with water as a shared resource Natural Capital - Addressing water security 118
	303-2 Management of water discharge-related impacts Natural Capital - Addressing water security 118
	303-3 Total water withdrawal by source Lupin Databook 155
	303-4 Water discharge Lupin Databook 155
	303-5 Water consumption Lupin Databook 155
GRI 305 - Emissions	305-1 Direct (Scope 1) GHG emissions Lupin Databook 154
	305-2 Energy indirect (Scope 2) GHG emissions Lupin Databook 154
	305-3 Other indirect (Scope 3) GHG emissions) Lupin Databook 154
	305-4 GHG emissions intensity Lupin Databook 154
	305-5 Reduction of GHG emissions Natural Capital - Carbon footprint 116
	305-7 Nitrogen Oxides (NOX), Sulphur Oxides (SOX), and other signifcant air emissions BRSR Principle 6 264
GRI 306 - Waste	306-1 Waste generation and signifcant waste related impacts Natural Capital - Enabling circular economy 157
	306-2 Management of signifcant waste related impact Natural Capital - Enabling circular economy 157
	306-3 Waste generated Lupin Databook 157
	306-4 Waste diverted from disposal Lupin Databook 157
	306-5 Waste directed to disposal Lupin Databook 157-158
GRI 308 - Supplier Environmental Assessment	308-1 New suppliers that were screened using environmental criteria Lupin Databook 171
	308-2 Negative environmental impacts in the supply chain and actions taken Social and Relationship Capital - Decarbonisation of value chain 132-133
GRI 401 - Employment	401-1 New employee hires and employee turnover Lupin Databook 161
	401-2 Benefts provided to full-time employees Lupin Databook 165
	401-3 Parental leave Lupin Databook 165
GRI 403 - Occupational Health and Safety	403-1 Occupational health and safety management system Human Capital - Health and Safety 109
	403-2 Hazard identifcation, risk assessment, and incident investigation Human Capital - Health and Safety 109
	403-3 Occupational health and services Human Capital - Health and Safety 109
	403-4 Worker participation, consultation and communication on occupational health and safety Human Capital - Health and Safety 109

451

GRI Standard Number	Disclosure Number Description Section/Subsection Title Page No./ Explanation
	403-5 Worker training on occupational health and safety Human Capital - Health and Safety 109
	403-6 Promotion of worker health Human Capital - Health and Safety 109
	403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Human Capital - Health and Safety 109
	403-8 Workers covered by an occupational health and safety management system Environment, Health, Safety and Sustainability (EHSS) Policy 1-2
	403-9 Work-related injuries Lupin Databook 170
	403-10 Work-related health Lupin Databook 170
GRI 404 - Training and Education	404-1 Average hours of training per year per employee Lupin Databook 163, 164
	404-2 Programs for upgrading employee skills and transition assistance programs Human Capital - Investing in people 98-103
	403-3 Percentage of employees receiving regular performance and career development reviews Human Capital - Assessing performance (for process) BRSR Principle 3(for India numbers) Human Capital-107 BRSR-257
GRI 405 - Diversity and Equal Opportunity	405-1 Diversity of governance bodies and employees BRSR Section A (for governing body diversity) Lupin Databook (for employees) BRSR-243 Lupin Databook 159-160
	405-2 Ratio of basic salary and remuneration of women to men Lupin Databook 160
GRI 406 - Non- discrimination	406-1 Incidents of discrimination and corrective actions taken Lupin Databook 151
GRI 408 - Child Labor	408-1 Operations and suppliers at signifcant risk for incidents of child labor Human Capital - Human Rights 109
GRI 409 - Forced or Compulsory Labor	409-1 Operations and suppliers at signifcant risk for incidents of forced or compulsory labor Human Capital - Human Rights 109
GRI 413 - Local Communities	413-1 Operations with local community engagement, impact assessments, and development programs Social and Relationship Capital - Enriching Lives of our Communities 122-127
GRI 416 - Customer Health and Safety	416-2 Incidents of noncompliance concerning the health and safety impacts of products and services Lupin Databook 151
GRI 417 - Marketing and Labeling	417-1 Requirements for product and service information and labeling Manufacturing Capital - Product Quality and Safety 81, 84
	417-2 Incidents of non-compliance concerning product and service information and labeling Lupin Databook 151
	417-3 Incidents of non-compliance concerning marketing communications BRSR Principle 9 271
GRI 418 - Customer Privacy	418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data Lupin Databook 151

452

Notes

==> picture [228 x 321] intentionally omitted <==

==> picture [77 x 77] intentionally omitted <==

Scan the QR code to visit our website

REGISTERED OFFICE

3[rd ] Floor, Kalpataru Inspire, Off Western Express Highway, Santacruz (East), Mumbai - 400 055. India. Tel: + 91 22 6640 2323

CORPORATE IDENTITY NUMBER L24100MH1983PLC029442

lupin.com twitter.com/LupinGlobal linkedin.com/company/lupin/ facebook.com/LupinWorld/ youtube.com/c/LupinGlobal